7606 CONGRESSIONAL RECORD-HOUSE construction, maintenance, and operation of of enlisted men of the Marine Corps and HOUSE OF REPRESENTATIVES a public highway over a -portion of the United Marine Corps Reserve; States naval ammunition depot, McAlester, H. R. 1742. An act for the relief of Mary TuESDAY, JuNE 24, 1947 Okla.; Lomas; H. R. 1845. Ar. act to amend existing laws H. R. 2276. An act to authorize the Secre The House met at 12 o'clock noon. relating to military leave of certain employees tary of War to pay certain expenses incident The Chaplain, Rev. James Shera Mont .. of the United St~tes or of the District of to training, attendance, and participation of gomery, D. D., offered the following Columbia so as to equalize rights to leave personnel of the Army of the United States of absence and reemployment for such em in the seventh winter sports Olympic games prayer: ployees who are members ot the Enlisted or and the fourteenth Olympic games and for Thou lowly Nazarene, in humility of Omcers' Reserve Corps, the National Guard, future Olympic games; and soul we bow at Thine altar. Here we or the Naval Reserve, and for pther purposes; H. R. 3769. An act to amend the Bankruptcy H. R. 2248. An act to authorize the Secre Act with respect to qualifications of part-time would pause and :find in Thee needed tEJ.ry of War to grant an easement and to referees in bankruptcy. strength and courage; here we seek to be convey to the Louisiana Power & Light Co. directed in honesty of purpose and in a tract of land comprising a portion of The message also announced that the tegrity of motive, for we would look for Camp Livingston in the State of Louisiana; Senate had passed bills and a joint reso~ ward as men look toward the morning. H. R. 2339. An act to amend the act en- lution of the following titles, in which Bless all States:. may their union be . titled "An act authorizing the designation the concurrence of the House is re~ strong, not for selfishness or aggression of Army man clerks and assistant Army mail quested: or self-aggrandizement, but a light of clerks," approved August 21, 1941 (55 Stat. 656), and for other purposes; S. 175. An act to provide for the furnish~ living hope whose rays fall upon the H. R. 2411. An act to authorize patenting ing of quarters at Brunswick, Ga., for the troubled waters of every shore line. of certain lands to Public Hospital District United States District Court for the Southern Grant that we may never violate the sa No. 2, Clallam County, Wash., for hospital District of Georgia; cred trust which has been placed upon us purposes; S. 179. An act for the relief of Maj. Ralph by a liberty-loving people. Do Thou in H. R. 2654. An act to authorize the Sec M. Rowley and First Lt. Irving E. Sheffel; retary of the Treasury to grant to the Mayor S. 203 . .t\..n act to increase the equipment spire us to cultivate those high quali maintenance of rural carriers 1 cent per mile ties which are requisite to give charac and City Council of Baltimore, State of Maryland, a permanent easement for the per day traveled by each rural carrier for- a ter, proper strength, dignity, and worth. purpose of 1nstall1ng, maintaining, and serv period of 3 years, and for other purposes; Be Thou our remedy for that which is icing a subterranean water main in, on, and S. 258. An act for the relief of Troy Charles wrong, our guide toward that which is across the land of the United States Coast Davis, Jr.; right, and our help in those emergencies Guard station called Lazaretto depot, Balti S. 292. An act for the relief of Samuel for which human strength is vain. more, Md.; Augenblisk; - In the name of our Saviour. Amen. H. R. 2655. An act to authorize the Secre S. 305. An act for the relief of Mrs. Hilda tary of the Interior to grant to the Mayor Margaret McGrew; The Journal of the proceedings of yes and City Council of Baltimore, State of S. 402. An act to authorize and direct the terday was read and approved. Maryland, a permanent easement for -the Secretary of the Interior to issue to James Black Dog a patent in fee to certain land; MESSAGE FROM THE SENATE purpose of installing, maintaining, and serv icing two subterranean water mains in, on, S. 490. An act to provide for the extension A message from the Senate, by Mr. and across the land of Fort McHenry Na and application of the provisions of the Frazier, its legislative clerk, announced tional Monument and Historic Shrine, Md.; Classification Act of 1923, as amended, to that the Senate had passed without H. R. 2915. An act for the relief of Mrs. certain officers and employees of the lrilml Frederick Faber Wesche (formerly Ann Mau gration and Naturalization Service in the amendment bills and joint resolutions of reen Bell); Department of Justice; the House of the following titles: H. R. 3124. An act to authorize the at S. 608. An act authorizing and directing H. R. 881. An ect for the relief of Allen T. tendance of the Marine Band at the Eighty the Secretary of the Interior to issue a patent Feamster, Jr.; first National Encampment of the Grand in fee to Growing Four Times; H. R. 407. An act for the relief of Claude R. Army of the Republic to be held in Cleve S. 682. An act to regulate the interstate Hall and Florence V. Hall; land, Ohio, August 10 to 14, 1947; transportation of black bass and other game H. R. 493. An act to amend section 4 of the H. R. 3372. An act authorizing certain fish, and for other purposes; act entitled "An act to control the possession, agreements with respect to rights in helium S. 706. An act for the relief of William.. D. sale, transfer, and use of pistols and other bearing gas lands in the Navajo Indian Res McCormick; dangerous weapons in the District of Colum ervation, N.Mex., and for other purposes; s. 880. An act for the relief of Rev. John bia," approved July 8, 1932 (sec. 22, 3204 D. C. H. R. 3629. An act to authorize the trans C. Young; Code, 1940 ed.); fer to the Panama Canal of property which S. 957. An act for the relief of Col. William J. Kennard; H. R. 577. An act to preserve historic p,rave is surplus to the needs of the War Depart ment or Navy, Department"; S. 1100. An act for the relief of Frankie yards in abandoned mtlitary posts; Stalnaker; H. R. 617. An act for the relief of James H. J. Res. 92. Joint resolution authorizing S.1231. An act authorizing and directing Harry Martin; the presentation of the Distinguished Flying the Commissioner of Public Buildings to de H. R. 1067. An act for the relief of S. C. Cross to Rear Adm. Charles E. Rosendahl, termine the fair market value of the Fidelity Spradling and R. T. Morris; United States Navy; Butlding in Kansas City, Mo., to receive bids H. R. 1144. An act for the relief of Samuel H. J. Res. 96. Joint resolution authorizing for the purchase thereof, and for other pur W. Davis, Jr.; Mrs. Samuel W. Davis, Jr.; and the President to issue posthumously to the poses; Betty Jane Davis; late Roy Stanley Geiger, lieutenant general, 8. 1361. An act to amend the United States H. R. 1318. An act for the relief of Mrs. United States Marine Corps, a commission as Housing Act of 1937 so as to permit loans, Fuku Kurokawa Thurn; · general, United States Marine Corps, and for' capital gr!J,nts, or annual contributions for other purposes; and H. R. 1362. An act to permit certain naval low-rent housing and slum-clearance proj personnE!l to count all active service rE'ndered H. J. Res. 167. Joint resolution to recognize ects where construction costs exceed present under temporary appointment as warrant or uncompensated services rendered the Nation cost limitations upon condition that local commissioned omcer" in the United States under the Selective Training and Service Act . housing agencies pay the difference between Navy and the United States Naval Reserve, or of 1940, as amended, and for other purposes. cost limitations and the actual construction in the United States Marine Corps and the The message also announced that the costs; United States Marine Corps Reserve, for pur Senate bad passed, with amendments in S. 1421. An act to provide for the appoint poses of promotion to commissioned warrant ment of one additional Assistant Secretary omcer in the United States Navy or the which· the concurrence of the House is of Commerce, and for other purposes; and United States Marine Corps, respectively; requested, bills of the House of the fol- S. J. Res. 136. Joint resolution to extend H. R. 1376. An act to amend the acts of lowing titles: ' the succession, lending powers, and the func~ October 14, 1942 (56 Stat. 786), as amended, H. R. 1358. An act to amend the act entitled tions of the Reconstruction Finance Corpo· . and November 28, 1943 (57 Stat. 593), as "An act to provide for the management and ration. amended, so as to authorize transportation operation of naval plantations outside the The message also announced that the of dependents and household effects of per continental United States," approved June 28, sonnel of the Navy, Marine Corps, and Coast 1944; Senate had passed, with amendments in Guard to overseas bases; H. R.1371. An act to authorize the Secre which the concurrence of the House is H. R. 1514. An act for the relief of certain tary of the Navy to appoint, for supply duty requested, a bill of the House of the fol~ disbursing omcers of the· Army of the United only, omcers of the line of the Marine Corps, lowing title: States, and for other purposes; and for other purposes; H. R. 3791. An . act making appropriations H. R. 1807. An act to authorize the t;ecre H. R. 1876. An act to further amend sec to supply urgent deficiencies in certain ap tary of the Navy to grant to the county of tion 1.0 of the Pay Readjustment Act of 1942, propriations for the fiscal year ending June Pittsburg, Okla., a perpetual easement for the so as to provide for the clothing allowance 30, 1947, and for other purposes. 1947 CONGRESSIONAL RECORD-. HOUSE 7607, The message also· announced that the Page. 9, line 5, after "$5,972,000", insert trol for use on a river and harbor proJ Senate insists upon its amendments to " 'Transportation of equipment and supplies', · ect on the Pacific coast. $50,000." the foregoing bill and requests a; con Page 9, line 5, after "$5,972,000", insert Mr. PHILLIPS of California. Mr. ference with the House on the disagree "'Operating force for public buildings', Speaker, will the gentleman yield? ing votes of the two Houses thereon, $50,000." Mr. CANNON. I yield to the gentle and appoints Mr. BRIDGES, Mr. BROOKS, Page 10, line 11, strike out "June 30, 1948" man from California. Mr. GURNEY, Mr. BALL, Mr. McKELLAR, and insert "expended." Mr. PHILLIPS of California. It is Mr. HAYDEN, and Mr. TYDINGS to be the Page 10, after line 11, insert: not a river and harbor project. Will the conferees on the part of the Senate. "The funds provided in the preceding par gentleman understand that there is only agraph shall be available to an amount not $250,000 to put that sand quickly into The message also announced that the exceeding $250,000 to take all action neces Senate having proceeded to reconsider sary to prevent erosion at Anaheim Bay, surf a very extreme emergency. The chang the bill
hundred-odd such bureaus s~rvicing peatedly, or it will not be widely ac brought with them many things, includ thousands of inquiries every week of the cepted. Who knows that better· than ing European culture. Over the years, year. That, to me,. is a most important Americans? Americans have journeyed to Europe feature. The finest product the world has ever in order to maintain contact with Eu To some, the student-exchange pro known was the life and teachings of ropean culture, and Europeans have gram is the most important; to others, Jesus Christ. But His message would come here to create and enhance Ameri the broadcasting feature is preeminent. never have gotten across, no matter how can culture. Now we are asked to show Mr. Chairman, I trust that the House perfect His life and His teachings and the world that we have a culture. We will consider well its vote before it re His deeds, if it had not been for. the are asked to extend our culture to Eu commits not only a bill but a principle greatest educational program and prop rope, to .a Europe in whic:t.l the chaos which has the almost unanimous ap aganda campaign-in the right sense of and destruction of war have perpetrated proval of the committee, the press, the the term-which ever existed. He Him cultural ravages also. We proclaim that radio, and the veterans' organizations self set it in motion when He sent out we reject the crass materialism of Marx of America. His disciples-trained personnel-to tell ism. We say that we do not believe in The CHAIRMAN. The Chair recog a story. It was a matchless story, almost the communistic doctrine of economic nizes the gentleman from Montana [Mr. unbelievable good news-but it had to be determinism. · We vehemently protest MANSFIELD]. told. It still has to be told. that we believe with Abraham Lincoln Mr. MANSFIELD of Montana. Mr. The Apostle Paul was the world's · that the individual is the complex heart Chairman, I ask unanimous consent that greatest and most effective spreader of of society. We state that our faith is the distinguished chairman of the sub ideas. · To be sure, he had the most based on the dignity of the individual committee handling this legislation be explosive ideas that the world has ever. that we believe in the human soul. And given my time. known. Communism is like a tin soldier yet there are some of us who would re The CHAIRMAN. Is there objection out of the dime store compared" to the strict our exports to the purely material to the request of the gentleman from explosive ideas which Jesus Christ let things of life. There are some who Montana? loose in tpe world. It is because of the would entitle our detractors to say that There was no objection. way in whicl: they were spread by the while we have produced a nation of mili The CHAIRMAN. The Chair recog disciples and by St. Paul and the mission tary might and industrial power we have nizes the gentleman from. Minnesota aries who have followed in ll:is train that engendered no culture commensurate [Mr. JUDD]. it can be truthfully said that "all the with these material achievements; that Mr. JUDD. Mr. Chairman, for any armies that ever marched, a.nd all the we are a cultural and spiritual desert. program to succeed there are three es navies that ever were built, and all the There are those who would furnish the sential requirements: The first is a sound parliaments that ever sat, and all the enemies of freedom with the basis for workable plan; second, adequate funds; ·kings that ever reigned, put together. saying that we worship the dollar rather and, third, proper personnel to carry it have not affected the life of man upon than the immortal soul of man. Are we out. this earth as powerfully as has that one such pagans that we have already for It has been apparent all during this · solitary life;'' · · gotten the spiritual values which enabled debate that the major difficulty most Mr. Chairman,~ believe with all my Americans to fight World War II to a Members have with respect to this biiJ heart that in the Constitution of the successful conclusion? Are we such is 'the question of the personnel. I un United St&.tes and ·the ·system ·of govern shallow cynics that we believe that men derstand fully that apprehension. I can ment our fathers established here, we will give their lives for· material things? say frankly· that when our committee have incomparably the best set of politi Have we forgotten our American herit first approached this problem I was cal ideas that were ever put together in age to such an extent that we dare not strongly disposed against it because ·of one place in the world's history . . I think proclaim our own settled conviction that some of the personnel I had .seen here they are the hope of the world. The our free system under God is one for and in Europe and Asia operating the future of our Nation and of the world which we are prepared to put forth a war-information programs which pre depends upon the spread of those ideas great sustaining effort in peace as well ceded this one. To be perfectly blunt, everywhere. The ideas are the world's as war? it was not in those years the Voice of best, but they are not enough; we must It is now our turn to provide culture America. It was mostly the voice of the present them. That, in my judgment, is for others. Aristotle said that education left wing of the administration in power. the only way we can ultimately turn. back is an adornment in prosperity and a I could not support that. I wanted a the tide of totalitarianism and tyranny refuge in adversity. Let us help to pro true voice of America, all of America. which is sweeping over the earth. vide that refuge. Let us spread the Mr. Chairman, if I did not know of the The CHAIRMAN. The Chair recog beneficent contagion of our education, great changes in policy and in personnel, nizes the gentleman from Connecticut of our culture, of our concept of human both at higher and lower levels, that have [Mr. LoDGE] for 2 minutes. society to the remote recesses of this taken place in the last 6 months or more, Mr. LODGE. Mr. Chairman, if this planet where the forces of darkness and if we had not in this bill established more legislation is not passed by, the House, despotism have enslaved millions of peo careful definitions of the functions of our failure will have repercussions far ple. Let us enlarge our conceptions to the office in the future, and stricter con beyond the details of the uill which are the circle of our duties. A world con trols of its activities and, above all, of under attack. It will be interpreted tracted by science must be united by its personnel, I would still be against it. abroad as further evidence of isolation freedom if peace is to prevail. But as I studied the whole problem in ism. In a world in which blitzkreig by The CHAIRMAN. The Chair recog relation to our present world situation infiltration, subterfuge, blackmail, and nizes the gentleman from South Caro during days of hearings and discussions, political pressure has been substituted lina [Mr. RICHARDS]. on the record and off the record, I be for blitzkreig by direct military assault, Mr. RICHARDS. Mr. Chairman, I came increasingly convinced of two par we shall have decided to conduct an yield back my time. amount facts. First, that the need for unworthy retreat. That this will seri The CHAIRMAN. The Chair recog this information and education program ously handicap our Government in the nizes the gentleman from South Dakota today is infinitely greater than we have prosecution of an effective foreign policy [Mr. MuNDT] for 4 minutes. realized; anc, second, that the agency is beyond doubt, as the. testimony of Mr. MUNDT. Mr. Chairman, we have has been enormously improved. Its per General Marshall, General Eisenhower, now come to the end of a long, interest sonnel has been drastically combed and Gen. Bedell Smith, and others force ing, and informative discussion of what culled out. That process is still going fully states. I honestly consider to be one of the most on. Whatever it or its predecessors did But if we fail to pass this measure, our important decisions this Congress has in the past, it is doing a good job now failure will carry still other implications been called upon to make during the and there is no reason to doubt that J.t which are not pleasant to contemplate. Eightieth Congress. For some reason or will do an increasingly good job in the It will be, on our part, a most unbecom other it has been tremendously difficult future. ing and damaging gesture. Our coun to get across to the membership the true I ·do not care how good a product may try has been populated in large part by and honest facts which are involved in be. It must be well presented, and re- people from Europe. These people this decision. 7616 CONGRESSIONAL RECORD-HOUSE' JUNE 24 I want to read, for example, ..a tele Mr. MUNDT. I am sorry; I cannot Mr. Chairman, Members of the House, gram which just came to me this morn yield. · I urge your support of H. R. 3342 with all ing from Mr. Louis E. Starr, commander I submit in closing, Mr. Chairman, that the force at my command. Winning the in chief of the Veterans of Foreign Wars some Members of the House seem in peace is fully as important as winning of the United States, who has been clined to swallow a camel but strain the war. I trust that by your votes on worried because somebody misquoted the at a gnat. We have voted to the same this legislation you will support and ap position of the Veterans of Foreign Wars men who are to carry out this program prove a program set up to secure the during the sustained debate on H. R. $11,000,000,000 in this Congress to give peace and devised to create a climate in 3342. Here is his telegram: us defense establishments. We have which the causes of war can be elim Strongly urge favorable consideration of voted $12,000,000,000 to give foreign aid inated and the blessings of peace can H. R. 3342 as pending in House. Essential abroad. be preserved. to a constructive approach of our postwar We are now down to what the other The CHAffiMAN. The time of the relations with other countries that we utiilze body of Congress indicates may be only gentleman from South Dakota has ex all media of information and cultural ex $12,000,000 to fight the battle of peace. pired. change. Reciprocal teacher-student ex Mr. Chairman, are Members really not All time for debate on the pending change important as informational broad interested in getting this battle for peace casts. We cannot fight ideas with our money amendment and on the bill has expired. but we can with our ideas and our American conclusively won? This suggested sum The question is on the amendment of way of life. of eleven or twelve millions to win the fered by the gentleman from South Da LOUIS E. STARR, peace is a most niggardlY sum compared kota [Mr. MUNDT], Commander in Chief, with the eleven billions we have voted The amendment was agreed to. Veterans of Foreign Wars of U. S. A. for security in this uneasy world 'and the Mr. BUCK. Mr. Chairman, I offer an That was sent up with a personal mes twelve billions authorized to supply crea amendment. ture needs abroad. The Clerk read as follows: senger, along with a note which I have What are you going to tell your people been asked to be read: Amendment offered by Mr. BucK: Page 21 back home when they ask you what the line 13, strike out the period and add the Much has been said on the floor of the Eightieth Congress did to help win the House that the teacher-student exchange following: "Inclusive of appraisals and meas provisions would cause infiltration of com peace? Are you going to say: "I voted urements, where feasible, as to the effective munistic ideologies into our country. $12,000,000,000 for aid abroad. I voted ness of the several programs in each country The Veterans of Foreign Wars of the $11,000,000,000 to give us a defense es where conducted." United States has been in the foreground in tablishment, troops, ships, and guns, but The amendment was agreed to. the fight against communism in this coun I could not trust these same administra try. Yet, as indicative of our appraisal of tors with eleven, or twelve, or twenty Mr. REES. Mr. Chairman, I offer an the situation, the VFW at its Forty-seventh million dollars to fight the battle of amendment. National Encampment held in Boston en peace." If that is the basis of our argu -The Clerk read as follows: dorsed the principle of the Mundt bill. Fol Amendment offered by Mr. REEs: Page 21, lowing is the national resolution: ment then we are derelict in our duty indeed in not coming down into the after line 9, insert the following: "RESOLUTION 531 well of the House and moving to impeach "SEc. 909. No provision of this act shall be "'INFORMATION AND STUDENT EXCHANGE WITH construed to modify or to repeal the provi the f;:lecretary of State if we do not have sions of the Veterans' Preference Act of 1944;" U.S.S.R. confidence enough in him to give .him the "'Be it resolved by the Forty-seventh Na And on line 11, renumber section 909 to $11,000,000 he says he needs to build the read "SEc. 910." tional Encampment, Veterans of Foreign temple of peace we all want to see Wars of the United States, assembled in The amendment was agreed to. Boston, Mass., Septembe1· 2-7, 1946, That (1) constructed. the Veterans of Foreign Wars attempt Mr. Chairman, I submit as a matter The CHAffiMAN. Without objection, through the State Department to arrange of cold candor that we should either im the Clerk will be authorized to correct the for and defray the expenses of exchange peach the Secretary of State or else section numbers so they will conform. students and exchange athletic teams to be equip him with the tools he needs to ac There was no objection. selected from among the members of the complish the results we all desire. As The CHAffiMAN. The question is on Veterans of Foreign Wars and veterans of the Red Army; and ( 2) the Veterans of Foreign for me, I prefer to provide him with the the committee amendment as amended. Wars through the State Department endeavor tools for which he pleads. and to set up The committee amendment as amend to make available to the Russian people a program for him to operate which can ed was agreed to. American radio programs, both news and make it possible for peace to succeed. The CHAffiMAN. Under the rule, the entertainment, American motion pictures, Preparedness alone and preparedness Committee rises. and American press services published 1n plus international alliances and organ Accordingly the Committee rose; and Russian." izations alone have been tried as devices the Speaker having resumed the ·chair, Mr. Chairman, the contents of this for maintaining the peace almost since Mr. JENKINS of Ohio, Chairman of the note from the VFW should make crystal the beginning of civilization. What has Committee of the Whole House on the clear the attitude of that great veterans' been the result? The result has been State of the Union, repor-ted that that organization on this important legisla one recurring war after another, each Committee, having had under considera tion. conflict being bloodier and more destruc tion the bill
/ 1947 CONGRESSIONAL RECORD-HOUSE 7627 the normal credit facilities of the Na worth of new loans have been originated BROWN] at the request of the Veterans' tion. in participation with small banks and Administration. It permitted the RFC No one knows, of coUrse, what is going small lending enterprises during 1946, to furnish a secondary market for in- . to happen, whether we will have a re and all this was done without one single sured loans that the Veterans' Bureau cession, whether the disturbed foreign word of criticism that the RFC was com make to the veterans to buy their homes. situation or other events over which peting with any lending institutions. I The committee did not take enough neither the Congress nor business ·have think that is a record you can be very time 1n consider1ng this proposal. any control, will result in a great strin . proud of. Surely we did not have enough testimony g~ncy of credit; and I think we would be DEMANDS EXPANDING ECONOMY to show us the right way to do it. very, very careless of the Nation's wel By arbitrarily denying this secondary fare if we, at this time, should fail to Mr. Chairman, prosperity and full em market for GI home loans I believe we continue the Reconstruction Finance ployment depend on an expanding econ are going to do the Government a dis Corporation. omy and not a contracting economy. If service, and I know definitely that we are you want to make jobs for the people AIDS SMALL BANKS going to do the veterans who want to who have the talents t( work, you can do get a home a disservice. I am constrained to disagree with my no better thari to make this necessary distinguished colleague the gentleman In permitting the RFC to buy .the GI finance for these small enterprises loans, we o:t!ered the RFC a chance ,to from Nebraska [Mr. BUFFETT], when he available to the little man who wants to says that this is a socialization of credit. buy them from any person who has origi establish his own business, who wants nally made the loan. There can be no This credit that the RFC extends through to buy machinery, who wants to buy bank The Clerk announced the following Cooper Jenkins, Pa. Poage Delaney Hope Nodar Corbett Jennings Potts Dingell · Howell Norrell pairs: Cotton Johnson, Ill. Poulson Dolliver Jarman Pfeifer On this vote: Courtney Johnson, Ind. Preston Domengeaux Jenison Phlllips, Calif. Mr. Rooney for, with Mr. Towe against. Cox Johnson, Okla. Price, Fla. Eaton Jensen Powell Cravens Johnson, Tex. Price, Ill. Fallon Johnson, Calif. Rabin Mr. Buchanan for, with Mr. Hartley against. Crawford Jones, Ala. Priest Fernandez Kearns Rayfiel Mr. Kelley for, with Mr. Stratton against. Crosser Jones, N.C. Rains Fuller Keefe Reed, N.Y. Mr. Gathings for, with Mr. Coudert against. Crow Jones, Ohio Ramey Gallagher Kelley Rizley Mr. Morrison for, with Mr. Nodar against. Cunningham Jones, Wash. Rankin Gary Keogh Robertson Mr. Keogh for, with Mr. Reed of New York curtis Jonkman Rayburn Gathings Ke.rr Robsion against. Dague Judd Redden Gifford Kilburn Rooney Davis, Ga. Karsten, Mo. Reed, Ill. Grant, Ala. Klein Sabath Mr. Lusk for, with Mr. Clippinger against. Davis, Wis. Kearney Rees Hagen Knutson Scrivner Mr. Morgan for, wtth Mr. Eaton against. Dawson, Utah Keating Reeves Hall, Lanham Smith, Qhio Mr. Klein for, with Mr. Dolliver against. Deane Kee ~ Rich Edwin Arthur Lusk Snyder Mr. Clements for, with Mr. Fuller against. Devitt Kefauver Richards Halleck McGarvey Stratton Mr. Chapman for, with Mr. Halleck against. D'Ewart Kennedy Riehlman Harless, Ariz. Macy Thomas, N. J. Mr. Pfeifer for, with Mr. Gifford against. Dirksen Kersten, Wis. Riley Harrison Manasco Towe Mr. Gary for, with Mr. Kilburn against. Dondero Kilday Rivers Hartley Mansfield, Tex. Vail Donohue King Rockwell Heffernan Mason Vinson Mr. Buckley for, with Mr. McGarvey against. Dorn Kirwan Rogers, Fla. Hendricks Morgan Welch Mr.· Heffernan for, with Mr. Macy against. Doughton Kunkel ' Rogers, Mass. Hess Morrison Mr. Delaney for, with Mr. Howell against. Douglas Landis Rohrbough Hill Nixon Mr. Dingell for, with Mr. Vail against. Drewry Lane Ross Mr. Domengeaux for, with Mr. Kearns Durham Larcade Russell So the bill was pass-ed. against. · Eberharter Latham Sadlak The Clerk announced the following Elliott Lea Sadowski' pairs: Mr. Richards for, with Mr. Arends against. Ellis LeCompte St. George Mr. Manasco for, with Mr .. Jenison against. Ellsworth LeFevre . Sanborn Additional general _pairs: · Mr._Teague fo~:, with Mr. :aess against. Elsaesser Lemke Sarbacher Mr. Byrnes of Wisconsin with Mr. Beck- · Elston Lesinski Sae.scer worth. ··_ Additiona.l_generai p;:~.irs: Engel, Mieh. Lewis, · Schwabe. Okla. Eng1e,' Cali!. Lodge Scoblick , Mr. Knutson with Mr. Davis ·or Tennessee~ Mr. Bennett of Michigan with Mr. Camp. Mr. Rfzley with Mr. Fallon. -~ Mr. Cole of Kans,a.s with Mr .' F.ern~pdez .. Evins - Love · Scott; Har~:Ue Feighan Lu'elis ' Scott, Mr. Scrivner with Mr. ·Harless. of A.rlZomr. ·· Mr.·Edwin Arthur Hall with Mr. Clark.: .. FeUows Lyle Hug;h D., Jr. · Mr. Thomas of New Jersey with Mr. Har- .,· Mr. Hill with Mr. Grant of Alabama. · Fenton Lynch Seely-Brown rison. · · -Mr. Jensen with Mr. Rabln . .. ·Fisher - _ McConnell Shafer _ . Mr. Keefe with Mr. Dawson. _Flannagan - - ·McCormack- ·Sheppard . -- · The result- of: the -vote was-announced . Mr. Robsion with Mr. Hebert. · Fletcher McCowen_ Short Fogarty McDonough Sikes as above recorded. _Mr. Phillips of California witl1. Mr. Jarman. ' Mr. WOLCOTT-. - Mr. Speaker, I ask · . Mr. Welc):l with Mr. Hendricks .. _ . Folger '_, McDowell ~ 'Simpson, Ill. F0ote ' McGregor Simpson; Pa. ·.. - unanimous . consent te -take from ~ the · Mr,. Mason wi~~ ~ ._; ~ayfi~l.. , . FQrnnd .•.. ..: . McMahon- • . .. Smathers · Speaker's table for ···consider Mr. Lemke with Mr. Norrell. · · Fu1ton -McMil-lan, S.C. Smith,..KaBS. · ininieaia~e ' Mr. -Nixon with ':Mr: Lanham. : G~mble McMlllen, Ill. . Smith, Maine· ation the-Joint resolution· - / 1947 CONGRESSIONAL RECORD-HOUSE 7639 ferred to the Committee of the Whole House 677). Referred to the Committee of the amendments (Rept. No. 648). Referred- to on the State of the Union. Whole House on the State of the Union. the Committee of the Whole House. Mr. GRAHAM: Committee on the Judiciary. Mr. WELCH: Committee on Public Lands. Mr. REEVES: Committee on the Judiciary. H. R. 3566. A bill to amend subsection· (c) H. R. 2996. A bill to authorize an appropria H. R. 642. A bill for the relief of Frank F. of section 19 of the Immigration Act of 1917, tion for public-J>chool facilities at Owyhee, Miles; with an amendment (Rept. No. 649) . as amended, and for other purposes; with Nev.; with an amendment (Rept. No. 678). Referred to the Committee of the Whole amendments (Rept. No. 647) . Referred to Referred to the Committee of the Whole House. the Committee of the Whole House on the House on the State of the Union. Mr. REEVES: Committee on the Judiciary. State of the Union. Mr. WELCH: Committee on Public Lands. H. -R. 1296. A bill for the relief of Cohen, Mr. WELCH: Committee on Public tands. H. R. 3153. A bill to provide for the sale or Goldman & Co., Inc.; with an amendment H. R. 175. A b111 to confer upon the Governor other disposal of certain submarginal lands (Rept. No. 650). Referred to the Committee of Alaska the power to pardon and remit flne·s located within the boundaries of Indian res of the Whole House. and forfeitures for offenses against the laws ervations in the State of Montana; with an Mr. JENNINGS: Committee on the Judi of the Territory of Alaska; without amend amendment (Rept. No. 679). Referred to the ciary. H. R. 1498. A bill for the relief of ment (Rept. No. 668). Referred to the Com Committee of the Whole House on the State Hempstead Warehouse Corp.; with an mittee of the Whole House on the State of of the Union. amendment (Rept. No. 651). Referred to the Union. Mr. WELCH: Committee on Public Lands. the Committee of the Whole House. Mr. WELCH: Committee on Public Lands. H. R. 3175. A bill to add certain public and Mr. FELLOWS: Committee on the Judi H. R. 187. A bill to amend Public Law 304, other lands to the Shasta National Forest, ciary. H. R. 1502. A bill for the relief of Seventy-seventh Congress; with an amend Calif.; with an amendment (Rept. No. 680). Herman Trahn; with an amendment (Rept. ment (Rept. No. 669). Referred to the Com Referred to the Committee of · the Whole No. 652). Referred to the Committee of the mittee of the Whole House on the State of House on the State of the Union. Whole House. the Union. Mr. WELCH: Committee on Public Lands. Mr. CRAVENS: Committee on the Judi Mr. WELCH: Committee on Public Lands. H. R. 3343. A bill to amend the Alaska game ciary. H. R. 1535. A bill for the relief of the H. R. 205. A bill to amend the act approved law; without amendment (Rept. No. 681). legal guardian of Ralph Stanfield, a minor; May 7, 1934, granting citizenship to the Met Referred to the Committee of the Whole with an :>,mendment (Rept. No. 653). Re lakahtla Indians of Alaska; with an amend House on the State of the Union. ferred to the Committee of the Whole House. ment (Rept. No. 670). Referred to the Com Mr. WELCH: Committee on Public Lands. Mr. JENNINGS: Committee on the Judi mittee of the Whole House on the State of H. R. 3266. A bill to authorize the issuance ciary. H. R. 1670. A bill for the relief of the Union. of certain public improvement bonds by the Pittsburgh DuBois Co.; with an amendment Mr. WELCH: Committee on Public Lands. Territory of Hawaii; without amendment (Rept. 'No. 654). Referred to the Committee H. R. 734. A bill to amend the act of Febru (Rept. No. 682). Referred to the House- Cal of the Whole House. ary 12, 1925, and for other purposes; without endar. Mr. SPRINGER: Committee on the Judi amendment (Rept. No. 671). Referred to the ciary. H. R. 1726. A bill for the relief of Committee of the Whole House on the State Mr. WELCH: Committee on Public Lands. H. R. 3376. A bill to ratify and confirm Act 10 Elsie L. Rosenow; with an 'amendment (Rept. of the Union. No. 655). Referred to the Committee of the Mr. WELCH: Committee on Public Lands. of the Session Laws of Hawaii, 1947, extend ing the time within which revenue bonds Whole House. H. R. 1337. A bill authorizing a per capita Mr. REEVES: Committee on the Judiciary. payment of $100 each to the members of the may be issued and delivered under chapter 118, Revised Laws of Hawaii, 1945; without H. R. 2062. A bill for the relief of Mrs. Car Red Lake Band of Chippewa Indians from rie M. Lee; with an amendment (Rept. No. the proceeds of the sale of timber and lumber amendment (Rept. No. 683). Referred to the House Calendar. 656). Referred to the Committee of the on the Red Lake Reservation; with an amend Whole House. ment (Rept. No. 672). Referred to the Com Mr. WELCH: Committee on Public Lands. H. R. 3679. A bill to enable the Legislature Mr. CASE of New Jersey: Committee on mittee of the Whole House on the State of the Judiciary. H. R. 2390. A bill for there the Union. of the Territory of Hawaii to authorize the city and county of Honolulu, a municipal lief of Elmer A. Norris; with an ~mendment Mr. WELCH: Committee on Public Lands. (Rept. No. 657). Referred to the Committee H. R. 1554. A bill to amend the act entitled corporation, to issue sewer bonds; with an of the Whole House. "An act providing for the transfer of the du amendment (Rept. No. 684). Referred to the House Calendar. Mr. CASE of New Jersey: Committee on ties authorized and authority conferred by the Judiciary. H. R. 2507. A bill for the re law upon the board of road commissioners Mr. DONDERO: Committee on Public lief of the firm of Barrett & Hilp; without in the Territory of Alaska to the Department Works. S. 723. An act to authorize the prep amendment (Rept. No. 658). Referred to the of the Interior, and for other purposes," ap aration of preliminary plans and estimates of Committee of the Whole House. proved June 30, 1932; without amendment cost for an additional omce building for the use of the United States Senate; without Mr. REEVES: Committee on the Judiciary. (Rept. No. 673). Referred to the Committee H. R. 2550. A bill for the relief of Mack Gene of the Whole House on the State of the amendment (Rept. No. 685). Referred to the Committee of the Whole House on the State Odom, a minor; with an amendment (Rept. Union. No. 659). Referred to the Committee of the Mr. WELCH: Committee on Public Lands. of the Union. Whole House. H. R. 1609. A bill to authorize the Legislature Mr. DONDERO: Committee on Public Works. S. 980. An act to amend the act en Mr. FELLOWS: Committee on :the Judi of the Territory of Alaska to provide for the ciary. S. 53. An act conferring United States exercise of zoning power in town sites on the titled "An act to define the area of the United public lands of the United States; with States Capitol Grounds, to regulate the use citizenship posthumously upon Harold Tur thereof, and for other purposes," approved cean; without amendment (Rept. N::>. 660). out amendment (Rept. No. 674). Referred to Referred to the Committee of the Whole the Committee of the Whole House on the July 31, 1946; without amendment (Rept. No. House. State of the Union. 686). Referred to the Committee of the Mr. WELCH: Committee on Public Lands. Whole House on the State of the Union. Mr. WELCH: Committee on Public Lands: 394. H. R. 2161. A bill to amend the act entitled Mrs. ROGERS of Massachusetts: Commit S. An act authorizing the issuance of a "An act authorizing the construction and tee on Veterans' Affairs. H. R. 3623. A bill patent in fee to Raymond Wesley Doyle; operation of demonstration plants to produce to provide that members of the Communist without amendment (Rept. No. 661). Re synthetic liquid fuels from coal, oil shales, Party shall be ineligible for veterans' benefits, ferred to the Committee of the Whole House. agricultural and forestry products, and other and for other purposes; with an amendment Mr. WELCH: Committ2e on Public Lands. substances, in order to aid the prosecution (Rept. No. 687). Referred to the Committee S. 395. An act authorizing the issuance of a of the war, to conserve and increase the oil of the Whole House on the State of the patent in fee to Richard Jay Doyle; without resources of the Nation, and for other pur Union. amendment (Rept. No. 662). Referred tC' the poses," approved April 5, 1944 (58 Stat. 190); Mr. SPRINGER: Committee on the Judici Committee of the Whole House. with an amendment (Rept. No. 675). Re ary. H. R. 3647. A bill to extend certain Mr. WELCH: Committee on Public Lands. ferred to the Committee of the Whole House powers of the President under title III of the S. 396. An act ~.uthorizing the issuance of a on the State of the Union. Second War Powers Act; with an amendment patent in fee to Thurlow Grey Doyle; with Mr. WELCH: Committee on Public Lands. (Rept. No. 688). Referred to the Committee out amendment (Rept. No. 663). Referred to H. R. 2361. A bill to clarify the legal status of the Whole House on the State of the the Committee of the Whole riouse. of certain lands described in a treaty between Union. Mr. WELCH: Commit+.ee on Public Lands. the United States and the Delaware Indians, 1 S. 397. An act authorizing the issuance of a dated October 3, 1818; with an amendment patent in fee to Lawrence Stanley Doyle; (Rept. ~To. 676). Referred to the Committee REPORTS OF COMMITTEES ON PRIVATE without amendment (Rept. No. 664). Re of the Whole House on the State of the BILLS AND RESOLUTIONS ferred to the Committee of the Whole House: Union. Under clause 2 of rule XIII, reports Mr. WELCH: Committee on Public Lands. Mr. WELCH: Committee on Public Lands. of committees were delivered to the Clerk S. 399. An act authorizing the issuance of H. R. 2484. A bill to authorize the payment for printing and reference to the proper a pat nt in fee to Gladys May Doyle; without of certain sums to jobbers in connection with amendment (Rept. No. 665). Referred to the their logging of timber for the Menominee calendar, as follows: Committee of the Whole House. Indians on the Menominee Reservation dur Mr. CASE of New Jersey: Committee on the Mr. WELCH: Committee on Public LandS. ing the logging season 1934-35, and for other Judiciary. H. R. 629. A bill for the relief H. R. 2885. A bill authorizing the Secretary purposes; with an amendment (Rept. No. of A. E. McCartney and 0. A. Foster; with of the Interior to issue a patent in fee to 7640 CONGRESSIONAL RECORD-HOUSE JUNE 24 B~~ker Little Light; with a.n amendn;tent H. R. 3951. A bill to terminate certain tax tee and providing for participation by mem (Rept. No. 666). Referred to the Committee provisions before the end of World War ll; bers of other standing committees of the of the Whole 'Jiouse. · to the committee on Ways and Means. House of Representatives; to the Committee Mr. WELCH: Committee on Public Lands. By Mr. WOLCOTI': on Rules. H. R. 2886. A bill authorizing the sale, under H. R. 3952. A bill to amend section 10 of ~ supervision, of land of Richard Little Light; the Federal Reserve Act, as amended, and for MEMORIALS without amendment (Rept. No. 667). Re other purposes; to the Committee on Bank ferred to the Committee of the Whole House. ing and Currency. Under clause 3 of rule XXII, memorials By Mr. FELLOWS (by request): were presented and referred as follows: H. R. 3953. A bill to amend the immigra By the SPEAKER: Memorial of the Legis PUBLIC BILLS AND RESOLUTIONS tion laws relating to stowaways; to the Com lature of the State of Wisconsin, memorial Under clause 3 of rule XXII, public mittee on the Judiciary. izing the President and the Congress of the bills and resolutions were introduced and By Mr. FARRINGTON: United States to halt all disposal of war sur H. R. 3954. A bill to approve Act No. 74 of plus goods; to the Committee on Expendi severally referred as follows: the Session Laws of 1947 of the Territory of tures in the Executive Departments. By Mr. BATES of Massachusetts: Hawaii, entitled "An act relating to revenue H. R. 3939. A bill to provide for the grant bonds of the Territory of Hawaii," and Act ing to certain officers of the Navy, Marine No. 95 of the Session Laws of 1947 of the PRIVATE BILLS AND RESOLUTIONS Corps, and Coast Guard of the benefits of Territory of Hawaii, entitled "An act relating promotions for which they were selected dur to Territorial and county public improve Under clause 1 of rule XXII, private ing the war but were prevented from receiv ments and the financing thereof by the is bills and resolutions were introduced and ing by virtue of being absent in a status of suance of revenue bonds," to the Committee severally referred as follows: missing, missing in action, interned in a on Public Lands. By Mr. FOGARTY: neutral country, captured by an enemy, be By Mr. KNUTSON: H. R. 3962. A bill for the relief of Giuseppe leaguered, or besieged, and for other pur H. R. 3955. A bill to make inapplicable sec tion 2139 of the Revised Statutes, relating Beghini; to the Committee on the Judiciary. poses; to the Committee on Armed Services. H. R. 3963. A bill for the relief of William By Mr. DffiKSEN: to the traffic in intoxicating liquors in the Indian country, to certain nonreservation J. Burns; to the Committee on the Judiciary. H. R. 3940. A bill to amend the act approved By Mr. JENNINGS: April 12, 1945 (59 Stat. 50), to authorize lands of the Chippewa Tribe of Indians in the State of Minnesota; to the Committee· on H. R. 3964. A bill for the relief of Thomas Commodity Credit Corporation, as an agency D. Sherrard; to the Committee on the Ju of the United States, to sell peanuts owned Public Lands. By·Mr. LEMKE: diciary. or controlled by it, and for other purposes; By Mr. O'BRIEN: to the Committee on Banking and Currency. H. R. 3956. A bill to prohibit Members of Congress from serving the United States in H. R. 3965. A bill for the relief of John H. By Mr. HAYS: any other capacity; to the Committee on the Schmitt and Mrs. Mildred Schmitt; to the H. R. 3941. A bill to provide special priori Judiciary. . · Committee on the Judiciary. ties for the disposal of surplus agricultural By Mr. LEWIS (by request) : By Mr. PETERSON: real property to veterans who intend to live H. R. 3957. A bill to amend Revised Stat H. R. 3966. A bill to authorize and direct on farms and to engage in farming as their utes 4898 (U. S. C., ti"tle 35, sec. 47) to add the District Court for the Southern District principal occupation, to eliminate the priori certain requirements as to the recording of of Florida to hear, determine, and render ties of State and local governments and subsequent purchases and mortgages affect judgment upon a certain claim of Bessie tenants of former owners with respect to ing patents and patent applications; to the Irene Edgar without regard to previous set such property, to ,reduce from 90 to 30 days Committee on the Judiciary. tlements with other tort feasors and lapse of the priority period within which former H. R. 3958. A bill to extend temporarily the time: to the Committee on the Judiciary. owners of surplus real property may exercise time for filing applications for patents and By Mr. POTTS: their priorities, and for other purposes; to for taking action in the United States Patent H. R. 3967. A bill for the relief of Samuel the Committee on Expenditures in the Execu Office with respect thereto; to the Committee Ezratty; to the Committee on the Judiciary. tive Departments. on the Judiciary. By Mr. POULSON: . By Mr. HILL: By Mr. SMITH of Virginia: H. R. 3968. A bill for the relief of Olive H:R. 3942. A bill to extend for 1 year H. R. 3959. A bill to extend the life of cer Irene Milloglav; to the Committee on the premium price payments with respect to tain provisions of the War Labor Disputes Judici¥Y· copper, lead, and zinc; to the Committee on Act; to the Committee on Education and Banking and Currency. Labor. PETITIONS, ETC. By Mr. HOFFMAN: By Mr. HUBER: H. R. 3943. A bill to require laundries in H. R. 3960. A bill to provide for the free Under clause 1 of rule XXII, petitions the District of Columbia to provide bond for importation of scrap or refuse synthetic rub and papers were laid on the Clerk's desk the loss of customers' property; to the Com ber; to the Committee on Ways and Means. and referred as follows: mittee on the District of Columbia. By Mr. O'KONSKI: 672. By Mr. HULL: Memorial of the Wis By Mr. KING: H. R. 3961. A bill to provide increases in consin Legislatrue, rn.emorializing the Con H. R. S944. A bill to create an Independent the rates of pension payable to Spanish gress of the United States to halt all disposal Air Safety Board; to the Committee on Inter American War and Civll ·War veterans and of war surplus goods; to the Committee on state ·and Foreign Commerce. their dependents; to the Committee on Vet Expenditures in the Executive Departments. By Mr. LESINSKI: erans' Affairs. 673. By the SPEAKER: Petition of Branch H. R. 3945. A bill to repeal Public Law No. By Mr. WOLCOTT: 918, Workmen's Circle, petitioning consid 101 of the Eightieth Congress; to the Com H. J. Res. 222. Joint resolution terminating eration of their resolution with reference to mittee on Education and Labor. consumer credit controls; to the Committee endorsement of a national health insurance By Mr. MAcKINNON: on Banking and Currency. bill, such as the Wagner-Murray-Dingell bill; H. R. 3946. A bill to authorize the imme By Mr.- T ALLE: to the Committee on Ways and Means. diate payment in cash of bonds issued under H. Con. Res. 54. Concurrent resolution to 674. Also, petition of Mrs. Charles Rich thtJ Armed Forces Leave Act of 194:'!, and for provide for the use of Schick General Hos man and others, petitioning consideration of other purposes; to the Committee on Armed pital at Clinton, Iowa, for the Veterans' Ad:. their resolution with reference to endorse Services. ministration; to the Committee on Veterans' ment of the Townsend plan, H. R. 16; to the By Mr. PLOESER: Affair-:. Committee on Ways and Means. H. R. 3947. A bill to amend the Strategic By Mr. BUCK: 675. Also, petition of Miss Matilda Oberd, and Critical Materials Stock Piling Act; to H. Res. 254. Resolution directing the Sec Sarasota Townsend Club, No. 1, Sarasota, the Committee on Armed Services. retary of State to transmit forthwith to the Fla., and others, petitioning consideration Committee on the Judiciary certain docu of their resolution with reference to endorae By Mr. ROSS: ments, records, and memoranda relating to H. R. 3948. A bill to incorporate the Gold ment of the Townsend plan, H. R. 16; to the one Serge Rubinstein; to the Committee on Committee on Ways and Means. Star Society of American War Widows and the Judiciary. 676. Also, petition of Joseph B. Dye, St. Orphans; to the Committee on the Judiciary. H. Res. 255. Resolution directing the At Petersourg, Fla., and others, petitioning con By Mr. BISHOP: torney General to trans~it forthwith to t~e sideration of their resolution with reference H. R. 3949. A bill to amend section 14 of Committee on the Judiciary certain docu to endorsement of H. R. 16, the Townsend the Flood Control Act of 1946 so as to pro ments, records, and memoranda relating to plan; to the Committee on Ways and vide for the removal of obstructions, ice, one Serge Rubinstein; to the Committee on Means. drift, and debris; to the Committee on Pub the Judiciary. 677. Also, petition of the Arizona-U. 8. A. lic Works. By Mr. EATON: Cancer Cure Society, petitioning considera- · By Mr. KNUTSON: H. Res. 256. Resolution authorizing the tion of their resolution with reference to H. R. 3950. A bill to reduce individual in Committee on Foreign Affairs to conduct requesting appropriations for cancer cure; come tax paym~nts; to the Committee on studies and investigations of all matters com to the Committee on Interstate and Fore!gn Ways and Means. ing within the jurisdiction of that commit- Commerce. ercent of which has been repaid. to the RFC because of its record for do tension of the life of the Corporation I also think of John D. Goodloe, the ing the job expeditiously and in a busi that broader powers are needed, if some present Chairman of the Board, an able nesslike manner. · deplorable situation arises when we must .administrator. He was only a law stu It is · also worth mentioning that the - .enlarge its powers and 1Ut·scope of oper- dent when I first met him, and I have peacetime functions of the RFC hav-e 1947 CONGRESSIONAL RECORD-HOUSE 7629 been carried on without any drain on the from· Congress to follow them. I refer, amended; and to prescribe, amend, and re Treasury. In fact, they have yielded a f or example, to loans to the REA and to peal, by its board of directors, bylaws, rules, net profit to the Government of more farm-tenant loans. These should be di- and regulations governing the manner in than $500,000,000 after payment · of all rect Treasury .loans and I ~ope this im- ~ ;~;~~ i;:s g!~;r~le b~~:!~:;~:i~~~~:c:~~~ operating expenses, interest on the money provement Will be authoriZed by the act, the board of directors of the corpora borrowed, and an adequate reserve Congress. tion · shall determine the necessity for and against losses. Mr. Chairman, it seems to me there is the character and amount of its obligations This is a record of restored 'confidence, every reason for prompt and unanimous and expenditures under this act and the and the prompt performance of difficult approval of the main features of this manner in which they shall be budgeted, assignments in times of emergency. I bill. I agree, however, that it is rather incurred, allowed, paid, a~<;t accounted for, disquieting news that the gentleman without rega~d to the prov1S1ons of any other ·do not anticipate a depression within laws governmg the expenditure of public the next year or two, and I hope that we from Oklahoma [Mr. MONRONEY], funds and such determinations shall be will never face another one, but none brings us of General Bradley's disap- final and conclusive upon all other officers of of us can read the future and it is well pointment in our failure to provide for the Government. The Corporation shall be to bear in mind that the RFC with its the continued RFC financing of veter- entitled to the free use of the United States vast experience, its trained organization ans' loans. I hope under the 5-minute mails in the same manner as the executive and its :flexible procedures, can be of in rule that we will go very carefully into deP.artments of the Government. the merits of the amendments to be of- (b) Notwithstanding any other provision calculable value to the Nation should an of law, the right to recover compensation unforeseen emergency develop. An or fered in that respect. granted by the act approved September 7, ganization of this caliber cannot be built The CHAIRMAN. If there are no 1916, as amended (5 u.s. c., sec. 751), shall overnight. further requests for time, the Clerk will be in lieu of, and shall be construed to ab- In addition to the desirability of con read. rogate, any and all other rights and reme- tinUing the RFC for emergency purposes, The Clerk read as follows: dies which any person, except for this pro vision, might on account of injury or death there is a continuing need for such an Be tt enacted, etc.- of an employee, assert against the Corpora agency to meet the credit needs of busi TITLE I-AMENDMENT TO RECONSTRUCTION tion or any of its subsidiaries. nese enterprises, particularly small busL :FINANCE CORPORATION ACT "SEc. 4. (a) To aid in financing agricul ness, including veterans. The economic SECTION 1. The Reconstruction Finance ture commerce, and industry, to help in health and welfare-of this Nation depends Corporation Act, as amended, is hereby maintaining the economic stab111ty of the mainly on the strength and stability of amended to read as follows: country and to assist in promoting maxi its small business enterprises. It is well "SEc. 1. There is hereby created a body mum employment and production, the Cor known that the legitimate credit needs corporate with the name 'Reconstruction poration, within the limitations hereinafter Finance Corporation' (herein called the provided, is authorized- of small business cannot be entirely met "(!) To purchase the obligations of and to by our private.. banking institutions. Corporation), with a capital stock of $325,- 000,000 subscribed by the United States of make loans to any business enterprise or And the RFC is authorized to make busi America. Its principal otnce shall be located ganized or operating under the laws of any ness loans only when credit is not other in the District of Columbia, but there may State or the United States: Provided, That wise available on reasonable terms. In be established agencies or branch otnces in the purchase of obligations (including equip other words, the Corporation is not en any city or cities of the United States under ment trust certificates) of, or the making of gaged in competition with banks. rules and regulations prescribed by the board loans to railroads or air carriers engaged in of directors. This act may be cited as the interstate commerce or receivers or trustees Many of the Corporation's loans, par thereof, shall be with the approval of the ticularly to banks and railroads, have 'Reconstruction Finance Corporation Act'. "SEc. 2. The management of the Corpora Interstate Commerce Commission or the Civil been large and spectacular, but the great tion shall be vested in a board of directors Aeronautics Board, respectively: Provided majority of all business loans have been consisting of tive persons appointed by the further, That in the case of railroads or air made to small business enterprises. I President of the United States by and with carriers not in receivership or trusteeship, am told that of the 39,000 business loans _ the advice and consent of the Senate. Of the Commission or the Board, as the case which the Corporation has made since the tlve members of the board, not more than may be, in connection with its approval of three shall be members of any one political such purchases or loans, shall also certify 1932, 90 percent have been in amounts that such railroad or air carrier, on the basis under $100,000. The continuing need for party and not ~ore than one shall be ap pointed from any one Federal Reserve dis of present and prospective earnings, may be this type of :financial assistance is demon trict. Each director shall devote his time expected to meet its fixed charges without a strated by the fact that during 1946 the principally to the business of the Corpora reduction thereof through judicial reorgani RFC made 12,247 loans to business enter tion. The terms of the directors shall be zation except that such certificates shall not prises, involving over one-half billion 2 years but they may continue in otnce until be required in the case of loans or purchases dollars, and it should be remembered that their successors are appointed and qualified. made for the acquisition of equipment or for these loans were made only to applicants Whenever a vacancy shall occur other than maintenance. who could not obtain credit from private by expiration of term the person appointed "(2) To make loans to any financial insti to fill such vacancy shall hold otnce for the tution organized under the laws of any State sources. unexpired portion of the term of the director or of the United States. Perhaps of equal significance with its whose place he is selected to fill. The di "(3) In order to aid in financing projects lending functions is the number of re rectors, except the chairman, shall receive authorized under Federal, State, or munici quests the Corporation has received from salaries at the rate of $12;500 per annum pal law, to purchase the securities and obli small business for various types of assist each. The chairman of the board of direc gations of, or make loans to, (A) municipal ance, involving technical, managerial, tors shall receive a salary at the rate of ities and political subdivisions of States, (B) and accounting problems. RFC officials $15,000 per annum. public agencies and instrumentalities of one advised us that in 1946 the Agency han "SEc. 3. (a) The Corporation shall have or more States, municipalities, and political succession through June 30, 1949, unless it subdivisions of States, and (C) public corpo dled 260,000 requests for assistance, of is sooner dissolved by an act of Congress. rations, boards, and commissions: Provided, which about 50 percent pertained to mat It shall have power to adopt, alter, and use That no such purchase or loan shall be made ters other than loans. After receiving a corporate seal; to make contracts; to lease for payment of ordinary governmental or such preliminary assistance the loan ap or purchase such real estate as may be nec nonproject operating expenses as distin plicant frequently finds he does not need essary for the transaction of its business; to guished from purchases and loans to aid in a loan, or that he does not need a loan . sue and be sued, to complain and to defend·, financing specific public projects . as large as he anticipated, or for as long in any court of competent jurisdiction, State "(4) r;ro make such loans, in an aggregate or Federal: Provided, That the Corporation amount not to exceed $25,000,000 outstand a time as he originally believed neces shall be entitled to and granted the same ing at any one time, as it may determine sary. In many cases he :finds that his ' immunities and exemptions from the pay to be necessary or appropriate because of needs can actually be met by his local ment of costs, charges, and fees as are grant floods or other catastrophes. bank. By handling many of its business ed to the United States pursuant to the pro "(b) No financial assistance shall be ex loans through participation with banks visions of law codified in sections 543, 548, tended pursuant to paragraphs ( 1), (2), and the RFC has not only assisted small busi 555, 557, 578, and 578a of title 28 of the (3) of subsection (a) of this section, unless nessmen throughout the country but has United States Code, 1940 edition; to select, the financial assistance applied for 1s not employ, and fix the compensation of such otherwise available on reasonable terms. All also been a great help to the smaller otncers, employees, attorneys, and agents as securities and obligations purchased and all banks in meeting the legitimate credit shall be necessary for the transaction of the loans made under paragraphs (1), (2), and needs of their community. business of the Corporation, in accordance (3) of subsection (a). of this section shall be Some practices of RFC I do not approve .Wfth raws. applicable to the Corporation, as -of such sound value or so secured as reason of l:ut the agency was under a mandate 1n effect on June 30, 1947, and as thereafter ably to assure retirement or repayment and 7630 CONGRESSIONAL RECORD-HOUSE JUNE 24 such loans may be made either directly or in shall be subject to special assessments for pay into the Treasury as miscellaneous re cooperation with banks or other lending local irr.provements and shall be subject to ceipts the unused balance of the moneys institutions through agreements to partici State, Territorial, county, municipal, or local belonging to the Corporation, and make a pate or by the purchase of participations, or taxation to the same extent according to its final report to the Congress. Thereupon the otherwise. , value as other real property is taxed: Pro Corporation shall be deemed to be dissolved. "(c) The total amount of investments, vided, That the special assessment and tax "SEc. ll. (a) Whoever makes any state loans, purchases, and commitments made ation of real property as authorized herein ment knowing it to be false, or whoever pursuant to this section 4 shall not exceed shall not include the taxation as real prop willfully overvalues any security, for the pur $2,000,000,000 outstanding at any one time. erty of possessory interests, pipe lines, power pose of obtaining for himself or for any ap "(d) No fee or commission shall be paid lines, or machinery or equipment owned by plicant any loan, or extension thereof by by any applicant for financial assistance un the Corporation regardless of their nature, removal, deferment of action or otherwise, der the provisions of this act in connection use, or manner of attachment or affixation or the acceptance, release, or substitution of with any such application, and any agree to the land, building, or other structure upon security therefor, or for the purpose of in fluencing in any way the action -of the Cor ment to pay or payment of any such fee or or in which the same may be located. The poration, or for the purpose of obtaining commission shall be unlawful. exemptions provided for in the preceding money, property, or anything of value, under "(e) No director, officer, attorney, agent, sente~ce with respect to taxation (which this act, shall be punished by a fine of not or employee of the Corporation in any man shall, !or all purposes, be deemed to include more than $5,000 or by imprisonment for ner, directly or indirectly, shall participate sales, use, storage, and purchase taxes) shall not more t han 2 years, or both. in the deliberation upon or the determina be construed to be applicable not only with "(b) Whoever (1) falsely makes, forges, or tion of any question affecting his personal respect to the Corporation but also with re counterfeits any note, debenture, bond, or interests, or the interests of any corporation, spect to any other public corporation which other obligation, or coupon, in imitation of or partnership, or asscci:ltion in which he is is now or which may be hereafter wholly purporting to be a note, debenture, bond, or directly or indirectly interested. financed and wholly managed by the Corpo other obligation, or coupon, issued by the "(f) The powers granted to the Corpora ration. Such exemptions shall also be con Corporation; or (2) passes, utters, or pub tion by this section· shall cerminate at the strued to be applicable to loans made, and lishes, ·or attempts to pass, utter or publish, close of business on June 30, 1949, t ut the personal. property owned by the Corporation any false, forged or counterfeited note, de termination of ·such powers shall not be con or such other corporations, but such exemp benture, bond1 or .other obligation, or coupon, strued (1) to prohibit disbursement'of funds tions..sha.:.l not ·be constiued to be. applicable purportmg to "have,: been issued by the Cor on purchases_ -of securities and· obligations, in any State to any buildipgs which are cen poration, knowing th~ same to_ be false} on loans;· or on commitmepts or • ag~ee-ment~ sider~( by the ·laws ·of such State ·to be per fox:ged, or:counterfeited; ·or (3) falsely alters to make such p\}rchases or loans, Il!ade under sonal property for taxation purposes. . Not any .note, debenture, bond, or othe( obliga ~ . this act prior to the close of · busine~s on such withstanding any other .provision of law or tion, or coupon·, issued or purporting to have date, or (2) to affect the vaUdity or per any privilege or. consem.t to tax ·expressly. or . been ~u~d - by-the Corpox_:~tion; · ?r- (4) passes·, formance' of anJ ·other agreement- made· or implie$1ly granted thereby, the shares.oLpre entered in·t0 pursuant to law. utters, or ·publishes,-or attempts to pass, utter: ferPed stock of-national banKing· associations·, or publish, as true any falsely, altered b~ "(g) As used in this act, the terll! •sta:te' and the shares of preferred stock, capital sp.urious note,' debenture, ·bond, ·or other ob• includes the· District of Columbia, ,Alaska. notes, -and debentures . of .. State banks. and ligation; 'or coupon, issued or purporting.to Hawaii, an{! Puet:to Rico:· . . , : _ ·. . ' trust companies, acquir-ed prior to July.- 1, · have_: been· iss'l\6_d·· by -the-Corporati-on,· know "SEc. 5. Section. 5202 of the Re~ised Stat: 1947, by- the Cor-poration,· and the dividends .i~g the same to be ·falsely altered or ·sputi-ouS, 'ute8 of the Unlted States, ·as ·· amended, is - 'or iht'erest derived theref-roin .by.the Corpora' hereby amended by striking out the words or any persOI'l.who willfully'yiohi.tes any other tion, shall not, so long as the Corpora-tion prbvisiop of this _act,_s~all ·be punished by a 'War Finance Corporation ·Act' and inserting 'shall continue to own the eame,-be subject in lieu thereof the words 'Reconstruction. fine of not more than $10,000, by imprison:. ·to any- taxation by the United ·states, by any ment !or-not more than 5 years, or both.· · Finance C0rpor:ation ~ct. : . . _ . Territory, dependency., or p01;session thereo~. "SEc. 6·. · The Pedex:al Reserve banks are - "(c)' Whoever, being connected in any ca or the District of Columbia, or -by. any ·State, pacity .with: tpe ·corporation; . (l)' embezzles, authorized and. dire~tect to· act· as custodians countY.. municipa~ity, or local taxing author- and fiscal agents for the Corporation in the abstracts, _ p'\.lr~o_ins, or willfully misappUes any . ity, whether now, hereto:tpre, or hereafter irif !llOneys, funds, securities, or otl;ler things of general perf<;~r~!'nce of' its powers ·conferred. posed;· levied,-- or a~:;~essed, and whether for a _by this . act and the Corporatt.on may_reim value, whether belonging ·to it or pledged or past, ·pres.nt, or future taxing ·period. otherwise entrusted to it; or (2) witp intent burse such Federal Reserve banks for such "SEc. 9. In the event of termination of services in. &Ucb manner as may be agreed to defraud the Corporation or any ot?er body the powers granted to the Corporation' by politic or corporate, or any individual, or to upon. · section 4 of this act prior .to the expiration "SEc. 7. 'llle Corporatwn may issue to the deceive ahy officer; auditor, or examiner of the of its succession as provided in ~ection 3, Corporation, makes any false entry in any Secretary of the Treasury its notes, deben the board of directors shall, except as other tures, bonds, or other such obl1gations in an book, report, or statement of or to the Cor wiSe herein specifically authorized, proceed poration, or, ·without being duly authorized, amount outstanding at any. one time sum to liquldate its assets and wind up its affa.irs. cient to enable the Corporation to carry out draws any order or issues, ·puts forth, or as It may with the approval of the Secretary signs any note, debenture, bond, or other ob its functiona untler this act or ·any other of the Treasury deposit with ·the Treasurer provision of law, such obligations to mature ligation, or draft, bill of exchange, mortgage, of the United States. as a special fund any judgment, or decree thereof; or (3) with in:_ not more than 5 years from their respect!ve money belonging to the Corporation or from dates of issue, to be redeemable at the option time to time received by it in the course of tent to defraud participates, shares, receives of the Corporation before maturity in such :liquidation, for the payment of its outstand directly or indirectly any money, profit, prop manner a.s may be stipulated in such obliga ing obligations, which fund may be drawn erty, or benefit through any transaction, loan, tions. ,Such obligations may mature subee upon or paid out for no other purpose. Any commission, contract, or any other act of the 'quent to the period of succession of the Cor balance remaining after the liquidation of Corporation; or (4) gives any unauthorized poration. Bach such obligation shall bear all the Corporation's assets and after provi information concerning any future action or interest at a rate determined by the Secre sion bas been made for payment of all legal plan of the Corporation which might affect tary of the Treasury, taking into considera obligations shall be paid into the Treasury the val\~e of securities, or having such knowl tion the current average rate on outstand of the United States as miscellaneous re 'edge, invests or _speculates, directly or indi ing marketable obligations of the United ceipts. Thereupon th.e Corporation sliail be rectly, in the securities or property of any States as of the last day of the month pre dissolved and its capital stock shall be can company, bank, or corporation receiving loans ceding the issuance of the obligation of the celed and retired. or other assistance from the Corporation, Corporation. The Secretary of the Treasury "SEc. 10. lf at the expiration of the suc shall be punished by a fine of not more than is authorized to purchase any obligations of cession of the Corporation, its board of di $10,000 or by imprisonment for not more than the Corporation to be issued hereunder, and rectors shall not have completed the liquida 5 years, or both. for such purpose the Secretary of the Treas tion of its assets and the winding up of its "(d) No individual, association, partner ury is authorized to use as a public-debt aft"airs, the duty of completing such liquida ship, or corporation shall use the words 'Re transaction the proceeds from the sale of any tion and winding up of its affairs sball be construction Finance Corporation' or a com securities issued under the Second Liberty transferred to the Secretary of the Treasury, bination of these three words, as the name Bond Act, as amended, and the purposes for who for such purpose shall succeed to all or a part thereof under which he or it shall which securities may be issued under the the powers and duties of the board of direc do business. Every individual, partnership, Second Liberty Bond Act, as amended, are tors under this act. In such event he may association, or corporation violating this pro extended to include any purchases of the assign to any officer or officers of the United hibition shall be guilty of a misdemeanor Corporation's obligations hereunder. States in the Treasury Department the exer and shall be punished by a fine of not ex "SEC. 8. The Corporation, including its cise and performance, under his general ceeding $1,000 or imprisonment not exceeding franchise, capital, reserves and surplus, and supervision and direction, of any such pow 1 year, or both. its income, shall be exempt from all taxation ers and duties. When the Secretary of the "(e) The provisions of sections l12, l13, now or hereafter imposed by the United Treasury shall find that such liquidation 114, l15, 116, and 117 of the Criminal Code States, by any Territory, dependency, or pos will no longer be advantageous to the tJnited of the United States ~ U. S. C., title 18, ch. 5, session thereof, or by any State, county, mu States and that all of the Corporation's legal sees. 202 to 207, inclusive), insofar:. as ap nicipality, or local taxing authority, except obligations have been provided for, he shall plicable, are extended to apply to contracts that any real property of the Corporation retire any capital stock then outstanding, or agreements with the Corporation under 1947 CONGRESSIONAL RECORD-HOUSE 7631 this act, which for the purposes hereof shall (c) Sections 27, 82, 86, 87, and 38 of the surplus property under this section shall be be held to include loans, advances, dis Emergency Farm Mortgage Act of 1933, ap given priority under the Surplus Property Act counts. and rediscounts; extensions and re proved May 12, 1933 ( 48 Stat. 41) , as amended; of 1944, as amended, immediately following newals thereof; and acceptances, releases, (d) Sections 5 and 19 (c) and the last two transfers to Government agencies under sec and substitutions of security therefor. sentences of section 8 (b) of the Agricultural ti-on 12 of such act, as amended, and disposals "SEc. 12. The Corporation is authorized to Adjustment Act, approved May 12, 1933 ( 48 -to veterans under section 16 of such act, as exercise the functions, powers, duties, and Stat. 33) , as amended; amended. The provisions of section 12 (c) authority transferred- to the Corporation by (e) The act approved June 10, 1933 (48 of the SUrplus Property Act of 1944, as Public Law 109, Seventy-ninth Congress, ap Stat. 119) , as amended; amended, shall be applicable to purchases proved June 30, 1945, but only with respect (f) The last sentence of section 4 (b) of made under this section. The Reconstruc- to programs, projects, or commitments out the Home OWners' Loan Act of 1933, approved - tion Finance Corporation shall not purchase standlng·on June 30, 1947. - June 13, 1933 (48 Stat. 129) ,_as amended; any surplus property pursuant to this section "SEC. 13. If any provision of this act or (g) Sections 301 and 302 of the National unless a small business had previously made the application of such provision to any Industrial Recovery Act, approved June 16, application to the Reconstruction Finance person or circumstances shall be held in 1933 (48 Stat. 195), as amended; · Corporation for such property. The Recon (h) Section 84 of the Farm Credit Act of valid, the validity of the remainder of this struction Finance Corporation shall not pur act, and the applicabil1ty of such provision 1933, approved June 16, 1933 (48 Stat. 257), as amended; chase any real property for resale to small to other person or circumstances, shall not business pursuant to this section in any case be a1fected thereby." (1) The act approved January 20, 1934 (48 Stat. 318); where any person from whom the property TITLE n-MISCELLANEOUS (J) The fourth paragraph of the Emer had been acquired by a Government agency, SEC. 201. No provision of this act shall be gency Appropriation Act, fiscal year 1935, ap gives notice in writing to the Reconstruction construed so as to prevent the Corporation proved June 19, 1934 (48 Stat. 1056), and Finance Corporation that he intends to exer from disbursing funds on purchases, of secu section 202 of the Public Works Administra cise llis rights under section .23 of the Surplus rities and obligatiom, on loans made, or on tion Extension Act of 1937, approved June Property Act, as amended. commitments or agreements to make such 29, 1937 (50 Stat. 357); (b) The Reconstruction Finance Corpora purchases or loans, and liabil1ties incurred, (k) Sections 10, 13, 14, 15, and 16 of the tion is further authorized for the purpose of pursuant to law prior to the e1fective date act approved June 19, 1934 (48 Stat. 1105), carrying out the objectives of this section to of this act. as amended; arrange for sales of surplus property to small SEC. 202. The succession of United States (1) So much of sections 4 and 602 of the busin~ concerns on credit or time basis. Commercial Company, a corporation created National Housing Act, approved June 27, (c) Por the purposes of this section the by the Reconstruction Finance Corporation 1934 (48 Stat. 1247), as amended, as relates terms "persons," "surplus property," and pursuant to section 5d (3) of the Recon to the Reconstruction Finance Corporation; "Government agency" have the same mean struction Finance Corporation Act, as (m) The first section and sections 2, 3, 9, ing as is assigned to such terms by section 3 amended, 1s hereby extended through-June 11, and 13 o! the act approved January 31, of the Surplus Property Act of 1944, as 30, 1948. 1935 ( 49 Stat. 1) , as amended; amended. SEC. 203. All .assets and 11abllities of every (n) The act approved August 24-, 1935 (49 SEc. 209. Dur.ing the period between June kind and nature, together with all docu Stat., ch. 646, p. 796); SO, 1947, and the date of enactment of legis ments, books of account, and records, of · ( o) The act approved March 20, 1936 ( 49 lation making funds available for adminis the RFC Mortgage Company, a corporation Stat. 1185); trative expenses for the fiscal year ending organized under the laws of the- State of (p) The act approved AprU tO, 1936 (49 June 30, 1948, the Corporation is authorized Maryland,. all the capital stock of which is Stat., ch. 168, p. 1191); to incur, and pay out of _its general funds, owned and held by the Reconstruction Fi ( q) The first section of the act approved administrative expenses in accordance with nance Corporation, shall be transferred to January 26, 1937 (50 Stat. 5), as amended; the Reconstruction Finance Corporation. laws 1n e1fect on June 30, 1947, such obliga (r) The act approved February 11, 1937 tions and expenditures to be charged against With respect to the assets, liab1lities, and (50 Stat. 19), as amended; records transferred, "Reconstruction Finance funds when made avatlable for administra Corporation" for all purposes is hereby mb (s) So much of section 32 (b) of the Farm tive expenses for the fiscal year 1948. st1tuted for "The RFC Mortgage Company", Credit Act of 1937, approved August 19, 1937 Si!:c. 210. This act shall take e1fect as of and no suit, action, or other proceeding (50 Stat. 703), as relates to the Reconstruc midnight June 30, 1947. lawfully commenced by or against such cor tion Finance Corporation and so much of poration shall abate by reason of the en section 33 (b) of the said act as relates to the Mr. SPENCE (interrupting the read actment of this act, but the court; on mo payment of the expenses of corporations ing of the bill). Mr. Chairman, I ask tion or supplemental petition filed at any formed by the consolidation of two or more unanimous consent that the bill be con time within 12 months after the date of regional agricultural credit corporations; sidered as read and be open to amend such enactment, showing a necessity for the (t) So much of the act approved June 25, ments. survival of such suit, action, or other pro 1938 (52 Stat. 1193), as relates to the Recon ceeding to obtain a determination of the atruction Finance Corporation; The CHAIRMAN. Is there objection queatlons involved, may allow the same to (u) Section 12 of the Federal Highway Act to the request of the gentleman from be maintained by or against the Reconstruc of 1940, approved September 5, 1940 (54 'Kentucky? tion Finance Corporation. Stat. 867); There was no objection. SEc. 204. The Federal Loan Agency, created (v) Section 5 of the act approved June 19, Mr. BROWN of Georgia. Mr. Chair by Reorganization Plan Numbered 1 pursu 1941 (55 Stat. 250): man, I offer an amendment, which I send ant to the provisions of the Reorganization (w) The act approved October 23, 1941 (55 to the Clerk's desk. · Act of 1939, approved AprU 8, 1939, 1s hereby Stat., ch. 454, p. 744): abolished, and all its property and records (x) The act approved March 27, 1942 (56 The Clerk read as follows: are hereby transferred to the Reconstruction Stat., cla. 198, p. 174); Amendment offered by Mr. BaowN of Geor · Finance Corporation. (y) The act approved June 5, 1942 (56 Stat., gia: Page 6, after line 7, insert the following SEc. 205. The Reconstruction Finance ch. 352, p. 326); and new paragraph: Corporation is authorized and direeted to (z) Seetions 1 and 2 of PubUc Law 656, " ( 5) To provide for original mortgagees a transfer as soon as practicable after the ef Seventy-ninth Congress, approved August 7, market for home loans guaranteed or insured fective date of this act, to the secretary of 1946. under the provisions of title m of the Serv the Treasury, and the Secretary of the Treas SEC. 207. The liquidation of the a1faira of icemen's Readjustment Act of 1944, as ury is authorized and directed to receive. all the Smaller war Plants Corporation admin amended, or under tl:le provisions o! the of the stock of the Federal home-loan banks istered by the Reconstruction Finance Cor National Housing Act, as amended, by the held by the Reconstruction Finance Corpora poration pursuant to Executive Order 9665 purchase. administration, and disposition of tion. The Secretary of the Treasury shall shall be carried out by the Reconstruction such loans directly, or through national cancel notes of the Reconstruction Finance Finance Corporation, notwithstanding the banks, acting as agents or as trustees." Corporation, and sums due and unpaid upon provisions of the last paragraph of section 5 or tn connection with such notes at the time of the First War Powers Act, 1941. The Mr. BROWN of Georgia. Mr. Chair of such cancellation, in an amount equal to Smaller War Plants Corporation is hereby man, I was hopeful that our fine chair the par value of the stock so transferred. abolished. man would accept this amendment. SEC. 206. The following acts and portions SEC. 208. (a) The Reconstruction Finance I introduced this amendment last year of acts are hereby repealed: Corporation shall have the power to purchas~ and it became law. In my home county, (a) Sections 1, 201, 203, 204, 205, 206, 207, any surplus property for resale, subject to with a population of some 25,000 people, 208, 209, and 211 of the Emergency Relief regUlations of the War Assets Administrator and Construction Act of 1932, approved July or his successor, to small business when, in there are two $50,000 banks. They make 21, 1932 (47 Stat. 709), as amended; its judgment, such disposition is required to loans to veterans, but they can only loan (b) Section 304 of the act approved March preserve and strengthen the competitive po- · a certain amount of money, and the 9, 1933 (48 Stat. 1), as amended; sition of smaU business. The purchase of same situation exists in many rural areas ·/ 7632 ~ CONGRESSIONAL .RECORD-HOUSE JUNE 24 in the United States. If they had some :put up as collateral with them, which marily to mortgages issued under title ·place to sell these GI loans, then they does not relieve the small banks and 2 and title 6 of the National Housing Act. could serve many more veterans. We do ·place them in position to make further That phase of the amendment would be not have any market or any other lend loans to veterans on account of the small ·an additional power over that which was ing agencies to make or buy these loans. capital stock. granted by the amendment offered by The amendment I offered was to create a The Federal· Reserve would have to the gentleman from Georgia at the last secondary market in the Reconstruction obtain authority to purchase these loans session. The form of my amendment as Finance Corporation. Under the present just as the Reconstruction Finance Cor-· now offered as a substitute is substan law, the RFC is only authorized to pur poration must have authority to do the tially the same as the amendment offered chase these loans and not compelled to same thing. There would be no loss to by the gentleman from Georgia at tt!e do so. There are many veterans who the RFC because they can turn down last session of Congress. · cannot be served through the small . any and all loans they desire. They do Mr. BROWN of Georgia. Mr. Chair ·banks and obtain the money that Con not pay any premium for the GI loans. man, will the gentleman yield? gress provided in the GI bill of rights They would be in position to accommo Mr. MAcKINNON. I yield to the gen unless we have a market for these small date the bank that is not able to make tleman from Georgia. banks to sell the loans. The American so many loans and carry out the inten M... ·. BROWN of Georgia. The amend Legion, the Veterans of Foreign Wars, tion of Congress. The refusal to allow ment offered is the amendment that was and practically all of the veterans' or the RFC to purchase these loans is com in the bill introduced by the gentleman ganizations have endorsed this amend pletely inconsistent with the intention from Michigan [Mr. WOLCOTT] . We -ment. The termination of the authority of Congress as laid down in the GI bill considered that bill in the committee. of the RFC to purchase veterans' loans of rights. I just followed his language, and added in order to enable veterans to continue Now, let us be frank and tell the vet .. the additional language which was ·not to purchase homes in many ,localities erans that as long as the GI bill of rights there in the Wolcott amendment. In would be disa.strous because in many of is on the statute books we mean to serve effect I copied· the other amendment. these localities there is no agency to them by these loans, and without this Mr. MAcKINNON. That is absolutely purchase such loans. Only $40,000,000 amendment it is impossible to do it in right. Upon investigating and studying has been expended by the RFC in pur many communities of the United States. that amendment I was of the opinion chasing such loans, and the veterans If you desire to amend the GI bill of that there was a strong possibility that have received some $4,000,000,000 in the rights, do that in another bill. We want it would throw the RFC into financing purchasing of homes. to give the same treatment to all the general housing construction that I am It is true that in the large cities of this veterans. This amendment simply gives sure the Congress did not wish to give country there are other lending agencies authority to the RFC so that we can them at this time as we have other agen which can .purchase the loans from the have a market to sell the loans in locali cies for that purpose. ·banks, but in the small communities ties of this country where the banks· can This amendment I am offering is lim there is nobody to serve the community not afford to loan more money .on account ited to loans on veterans' homes au and serve the ·veterans but the small of small capital stock and must get rid of thorized under the Servicemen's Read banks. There are no other lending some of the loans in order to accommo justment Act of 1944. agencies. date more veterans. It is a great injus Various claims will be made about this Mr. CARROLL. Mr. Chairman, will tice to a great majority of our veterans. .particular amendment. The thought the gentleman yield? We must treat them all alike wherever will be expressed tli.at' possibly if we are - Mr. BROWN of Georgia. I yield. they are located. That was the inten going to contin'ue this it ought to be done Mr. CARROLL. Denver is a city of tion of the Congress in providing a way as an amendment to the GI bill of rights. .some ·400,000 population. I hav.e a tele for veterans to have homes. Many com If you want to do it that way I have gram from the Denver Association of munities certainly cannot serve them un no objection; but we are not doing it Home Builders, which represents those less this amendment is adopted. that way apd if we cut th~s o~ in ~his builder3 who are building about 90 per The CHAIRMAN. The time of the bill today we are in effect amending the ·cent of the home construction in the gentleman from Georgia [Mr. BROWN) GI bill of rights so as 'to make it in Denver area. They say the amendment has· expired. operative, and completely so, in a great -which the gentleman has offered is vital Mr. MAcKINNON. Mr. Chairman, I many instances where the GI is a neces ly essential to enable the veterans to offer a substit ute amendment for the sitous bo:~;:rower. I want to drive that purchase homes under the existing pro amendment offered by the gentleman home. The most necessitous GI bor gram. So even in a city where they have rowers are the principal ones who will be larger banks and larger agencies that can from Georgia. The Clerk read as follows: unable to secure their credit if this pro purchase this paper, they say this is vital vision is not adopted. Unless there is 'Iy necessary to a continuation of their - Amendment offered by Mr. MAcKINNON as a substitute for the amendment offered by some secondary line of credit where such home building program. Mr. BRowN of Georgia: Page 6, aft er line 7, 100-percent loans can be disposed of, the Mr. BROWN of Georgia. I thank the and before line 8, insert a new subparagraph provisions of the GI bill are not going gentleman for his contribution. , to read as follows: to be implemented and we are going to Mrs. ROGERS of Massachusetts. Mr. " ( 5) To provide for original mortgage4ils a deny to the most necessitous individuals Chairman, will the gentleman yield? market for home ·loans guaranteed or in in the or group the benefits that we have Mr. BROWN of Georgia. I yield. sured under the provisions of Title III of the promised them in the GI bill of rights. Mrs. ROGERS of Massachusetts. Servicem en's Readjustment Act of 1944, as amended, by the purchase, administration. I do not think there can be any argu Would the gentleman like to have in ... and disposition of such loans directly, or ment about that particular proposition. serted under extension of remarks some through national banks, acting as agents or I am as ·much opposed as any per on to telegrams I have received from a dozen as trustees." loose credit, but if we are going to imple communities and cities and American ment the GI bill of rights in any par Legion organizations asking that this The CHAIRMAN. The gentleman ticular its promised benefits should be amendment be agreed to? from Minnesota is recognized for 5 min made equally available to all. To make Mr. BROWN of Georgia. I would be utes in support of bis amendment. the loan guaranty effective we must glad to have the lady put those in. AUTHORITY TO PURCHASE Gl LOANS SHOULD BE adopt this amendment, because the min Mrs. ROGERS of Massachusetts. CONTINUED IN RFC ute this bill becomes law there will be Does not the gentleman think this is Mr. MAcKINNON. Mr. Chairman, this no place that a GI can go to get the adding something to the bill rather than amendment is in substantially the same benefits that have been held out to him. detracting from it? form as the existing provision of the law I appreciate the difficulties of offering Mr. BROWN of Georgia. Well, I know upon which we are presently operating. an amendment on the floor when it is that .a great many soldiers cannot be The difference between my amend opposed by the committee, but I submit accommodated. It was suggested in the ment and that offered by the gentleman that the justification for the continua Rules Committee tha~ the Federal Re from Georgia is that his amendment also tion of this power is so great in view of serve System might accommo.dat.e them, includes authority to purchase mort the promises that have been made in but they do not have the authority to gages issued under the National Hous the GI bill that we should leave no stone buy the loans, and loans can only be ing Act. The NHA provision refers pri- unturned to see that those promises are 1947 CONGRESSIONAL-RECO-RD-HOUSE 7~33 fulfilled. I thank you for your consider · Arthur L. Marcus, Legionnaire, Greendale, confidence in our own paper which we ation and in closing I wish to point out Wis. · are insuring in the Veterans' Adminis that the veterans' organizations are ~ A. Clark Murdock, Legionnaire, Omaha, tration. There is additional liability Nebr. strongly supporting this amendment. In J. D. Sawyer, Legionnaire, Middletown, involved because the loans are insured support of that statement, I include a Ohio. 100 percent of value. When we fur telegram from the American Legion: Dick Vail, Legionnaire, Fresno, Calif. nished a market through RFC we are WASHINGTON, D. C., June 24, 1947. ' J. E. Owens, president, .Carolina Housing · able to keep from any danger that the Hon. GEORGE MACKINNON, and Mortgage Corp., Hickory, N. C_. price in the market place might decline House oj Representatives: The State of Massachusetts is tre to 85 or 90 percent· of their true value. The American Legion strongly objects to I am sorry indeed that -the committee termination o! authority of RFC to purchase mendously interested in this matter. I see the gentleman from Massachusetts did not have the time to adequately go veterans' loans as contemplated by H. R. 3916. ipto this matter. If they had had testi Continuation of this authority necessary to [Mr. KENNEDY] is going to speak on it. eriable veterans to continue to purchase It seems to me this is really making in mony in the hearings, I am certain that homes. Request your cooperation in secur tbe bill would have contained this very operative loans under the GI bill of provision. ing amendment of H. R. 3916. rights. JOHN THOMAS TAYLOR, I hope the amendment will be adopted _I do ask that the committee vote for Legislative Representati ve, and some provision made to make the either amendment. Either amendment Ame1·ican Legion. loan provisions of the GI bill of -rights is just as good. The adoption of either Mr. WOLCOTT. Mr. Chairman, I ask operative. will make sure that the veteran desiring unanimous consent that all debate on The CHAIRMAN. The Chair recog a home wm not be denied the right to the pending amendment and all amend- . nizes the gentleman from Oklahoma adequate financing, no matter in what ments thereto close in 10 minutes and [Mr. part of the Nation he resides. Without MONRONEY]. this amendment, many sections of the that the majority close the debate. - Mr. MONRONEY. Mr. Chairman, cpuntry, in fact probably in all sections, The CHAIRMAN. Is th~re objection this amendment is endorsed by those to the request of the gentleman from who I think know more about the GI -the pledge of Congress to this home Michigan? housing program and in whom the Con financing will be nu111fied. There was no objection. ' . gress has more confidence than any one . The CHAIRMAN. The Chair recog The CHAIRMAN. The Chair recog- . throughout the country. I)izes the gentleman from Michigan [Mr. nizes the gentlewoman· from Massachu It is endorsed by the American Legion, · WOLCOTT]. setts. the Veterans of Foreign Wars and by Mr. WOLCOTT. Mr. Chairman, this Mrs. ROGERS of Massachusetts: Mr. General Bradley. The original amend-' activity has iucreased from nothing to Chairman, the Home Builders Associa ment was put in at General Bradley's re the point now where there is something tion of Massachusetts, together _with a quest last year. It also has the endorse less than $60,000,000 outstanding. This representative of the American Legion, ment of the National Mortgage Associa is what the RFC is doing in this respect, visited me this morning and expressed tion, which includes almost all of your and I ~hink that it believes that we could great concern that this would in effect large insurance companies, and every cut off the program here now, but. it is nullify provisions under the GI bill of phase of our national economy dealing very doubtful whether we can cut this rights. I have copies of telegrams that with· this type of mortgage. It is also program -off a year or a year and a half came in · to the American Legion, and endorsed by the Home Builders.Associ a-· from now. will read a list of companies making tion. , I will also read from General Bradley's loans' to Teterans in the various States Mr. Chairman, I would like to read letter to me a very significant state who Qave expressed themselves as indi one· paragraph, if I may, from General· ment: cating that the extension of the·author Bradley's letter, which is too long to read _ The amount of, mortgages purchased to ity of the RFC to purchase loans granted in its entirety in this short period · of date is small as compared with the amount anticipated. I am advised informally that by the Veter.ans' Administration· under time: 'I; he Reqonstruction _Finance _Corporation at the OI bill of rights is essential. This The Veterans' Administration is aware present is making purchase commitments list Is as follows: that the saturation point has been reached at the rate o! $1,500,000 per day• and the J. C. McGee, president, Reid McGee & Co., by many lenders !or long-term mortgage total commitments at present are approxi Jackson, Mi8S. · commitments and there are indications that mately $62,877,387. W. Walter Williams, Seattle, Wash. - many other lenders will reach that st ~ ge. Joseph N. Garson, president, Fidelity Bond Several conferences with lend~r groups have Now, the total power of the Recon & Mortgage Co., Philadelphia, Pa. demonstrated that the continuation o! the struction Finance Corporation to loan is R. C. Houser, Miami, Fla. Reconstruction Finance Corporation pur $2,000,000,000 under this program. Very A. H. Cadwallader, Jr., Corpus Christi, Tex. chase program is not only desirable but shortly you would have exactly the same Mortgage Investment Corp., San Antonio, essential if veterans' needs for financing the situation in reference to this loan that Tex. purchase of homes are to be met. you have with the blanket participation. Lyle H. Plant, T .- J. Bettes co., San .An We gave a solemn pledge to the vet tonio, Tex. That activity grew from nothing to about B. B. Bass, -yice president, American Trust erans of this country that .we would in $450,000,000 in a year and a half's time. Co., Oklahoma City, Okla sure their loans by 100 percent. By this In les.::; than 2 years' time over 50 per Albert Mager, Mager Mortgage Co., Okla- action today in shirking this authority cent of your loaning power would be in homa City, Okla. we are running out on that pledge. Now, these loans. The banks have money now H. B. MotHtt, Oklahoma City, Okla. if the Congress wants to violate the to make this credit available, and if these W. R. Johnston, Oklahoma City, Okla. pledge, let us do it directly, not indirectly. GI loans under present conditions are not Richard Gill, president, Richard Gill Co.: San Antonio, Tex. Mr. KENNEDY. Mr. Chairman, will good risks for the banks, then I doubt James R. Rouse, regional vice president, the gentleman yield? · whether the Federal Government should Mortgage Bankers Association, Baltimore, Mr. MONRONEY. I yield to the gen go into them through the back door of Md. tleman from Massachusetts. the Rlt1C, but should amend the Service Hill Mortgage Corp., Buffalo, N.Y. Mr. KENNEDY. Is it not a fact that men's Readjustment Act. Hubert R. Haeussler, regional vice presi _ What happens? The. Veterans' Ad dent, Mortgage Bankers Association o:· Amer while the RFC has only purchased about ica, Detroit, Mich. $60,000,000 worth of these mortgages out ministration guarantees a loan up to 50 Aksel Nielsen, the Title Guaranty Co., Den of a total of $4,000,000,000 of mortgages percent of its value not to exceed $4,000. ver, Colo. involved, nevertheless it does serve to The loari is not made to the veteran by Richard Cadwallader, national vice ·com give confidence to the banks that have the Veterans' Administration. It is made mander of American Legion and chairman of put out these mortgages to know that to the veteran by a bank, and the bank the national _ housing committee, Baton the RFC and the lending power of the goes to the Veterans' Administration and Rouge, La. · RFC are behind them? gets 50 percent of that loan guaranteed Fred M;. Fuecker, department adjutant of the American Legion of Washington, Seat Mr. MONRONEY. The gentleman is up to $4,000. What happens on an $8,000 tle, Wash. quite right. If we do not extend this house? Default is made.by the veteran. Hayward S. Cleveland, Legionnaire, Port lending power we are saying to all the The Veterans' Adri1inistration immedt Washington, N. Y. lending institutions that the RFC has no ately comes· in and P,ays the bank ~1 . 0 2 0. XCill--481 7634 CONGRESSIONAL RECORD-HOUSE JUNE 24 The banlc now liQUidates that indebted The SPEAKER. Is the gentleman Wlnstead Wood Zimmerman ness through foreclosure of the $8,000 from New York opposed to the bill? Wolverton worley loan to get its $4,000 out, paying back Mr. MARCANTONIO. In its present NAY8-192 what is left over the $4,000 to the Veter form I am, Mr. Speaker. Allen, Ca!U. Gavin lluhlenbforg ans' Administration. Now, that is re· The SPEAKER. The gentleman Allen, m. Qea.rha.ri Mundt Andersen, Glliette Murray, Wis. duced proportionately. All you are do qualifies. H. Carl Glllfe Norblad ing here is to make it possible for some · The Clerk will report the motion to Anderson, Calif. Goff O'Hara body to get half of 1 percent for serv recommit. Andresen, Goodwin O'Konskl August H. Graham OWens icing this paper. The OI is not involved The Clerk read as follows: Andrews, N.Y. Grant, Ind. Pattereon at all in this transaction. These banks Mr.· MAitcANToMio moves to recommit the Angell Griffitha Phillips, Tenn. can rediscount this paper at the Federal bill (H. R. 3916) to the Committee on Bank Arnold Gross Ploeser ing and Currency, with the r~commendation Auchlnclosa Gwinn, N.Y. Plumley Reserve banks. They can rediscount Bakewell Gwynne,Iowa Potts this paper with the home loan banks. it report the bl11 back forthwith with the Banta. Hagen Poulson We set up 12 of them with a capitaliza following amendment: On page 6, after llne Barrett Hale Ramey 7, insert the following subsection: tion of $150,000,000. They are function Bates, Mass. Hail, Reed,ID. " ( 5) To provide· for original mortgagees a Beall Leonard W. Rees ing as going concerns for the very pur ma.rket for home loans guaranteed or insured Bell Hand Reeves J}Ose of discounting this paper, and if the under the provisions of title m of the Serv Bender Harness, Ind. Rich banks cannot sell this paper to the RFC, icemen's Readjustment Act o! 1944, as Bennett, Mo. Herter Riehlman amended, by the purchase, admlnlstratton, Bishop Heselton Rizley they can rediscount it at the home loan Blackney Hinshaw Rockwell banks and the Federal Reserve banks. and disposition of such loans directly, or Boggs, Del. Hoeven Rohrbough You will have a lion by the tail inside of a through national banks, acting as agents Bolton Hoffman Ross year that you cannot get rid of. We have or as trustees." Bradley Holmes RU82eU Bl'ambl~ Hope Sadlak to meet it head on sometime, and we The SPEAKER. The question is on Brehm Horan St. George shoUld meet it before it gets out of con the motion to recommit. Brophy Jackson, Oallf. Sanborn trol. The question was taken; and on a divi Brown, Ohio Jenkins, Ohto Sarbacher Buck Jenkins, Pa.. Schwabe, Mo. The CHAffiMAN. The time of the sion (demanded by Mr. MARCP..NTONIO' Buffett Jennings Schwabe, Okla. gentleman from Michigan has expired. there were-ayes 3'1, noes 71. Burke Johnson, ru. ScobUck Mr. MARCANTONIO. Mr. Speaker, I Busbey Johnson, Ind. Scott, The question is on the substitute Butler Jones, Ohio HughD.,Jr: amendment offered by the gentleman object to the vote on the ground that a Byrnes, Wis. Jones, Wa.sh. Seely-Brown from Minnesota to the amendment of quorum is not present and make the point Canfield Jonkman Shafer fered by the gentleman from Georgia. of' order that a quorum is not present. Cannon Kean Short The SPEAKER. Evidently a quorum Carson Kearney Silnpson, m. The question was taken; and on a divi Case. N. J. Kersten, Wis. Simpson, Pa. sion