May 8, 1990 EXTENSIONS OF REMARKS 9707 EXTENSIONS OF REMARKS

SMAI.I. BUSINESS WEEK 1990 ness participation in Federal procaement In 1988, Congress passed Pubic Law 100- achieW!s parity with their contrbrtion to the 656. Section 502 mandates a gcwemmentwide HON. SB.VIO 0. CONTE gross national product. which is now 40 per­ smal business paticipation goaJ of not less OF ••ss•• HOS£IIS cent That parity or 8-percent increase shodd than 20 percent of the total value of al prime IB THE HOUSE OF BEPRESEllTATIVE come from prime COitbac&ig actions which I, contract awards for each fiscal year. In fiscal believe we can achieve by providing ~ year 89. DOO only acDeved 19 percent Tuem.a.11. May 8, 1990 opportunities and more cornpetitiolL DOO's actual first quarter 1990 sma1 business Mr. CONTE Mr. Speaker. , ~ the occa­ Consistent · that goal. I have authored pnne contracmg participation rate is an em­ sion of Smal ,Busmess Week, May 6-12. legislation in 1988 that became section 110 of barrassing 16 percent Qrrentty DOO is nego­ 1990. I rise to pay tri>ute to America"s small Pl.tiic law 100-590 changing the appeal timlg with the SBA oo its 1990 goaJ. Report­ busEesses. Ttis is the 26th year we have so process of Breakout f>roct6ement Center Rep­ ecly. they are offering orly a 17 percent goal honored smal business. The Iheme of small resentatives to mirror that of Tralitional Pro­ Mr. Speaker. I have a copy of a letter from busft!ss week this year is "Small Business: a.-ement Center Representatives. BPCR's are Mr. Horace Crouch, Chief SADBU, DOD oo Leamlg America into the 21st eenn.y.·· advocates of ~ in the procaement tis vesy issue. He lists a ruTtJer of reasons Over the years, much has been said and process. They identify and ..breakout" items why DOD cannot increase small business par­ printed about small busmess: How smal busi­ for competitiolL They also counsel and en­ ticipatioo--reasons No. 7 and No. 8 are im­ nesses employ 55 percent of all wodter5. eotnge small business to ~ for the portant so I wil quote rc¥am 40 percent of the gross national proWcl tt and eflC(Uage small business participatio11. and a similar A'I Force Program of Simplified has been said that American smaH business In the first session of this Congress, I au­ AcqUsilion of Base Enginee1ilig Reqt*ements produces so many goods and services that it thored H.R. 2274, lhe Small Business Protec­ [SABER] placing many of these COl .asoiclated can claim to be the worid's fotril geatest tion Act H.R. 2351. Women's Busi­ economic power. Indeed small business is in­ and the react upon small business prime contracting oppor­ the conntittee in 1965. From 1969 to 1978. I statement" whenever contracts anently seN­ turities. was the ranking minority member cbing which iced by small business are proposed for a pro­ SmaU business participation has already the cornmttee was upgraded from a select curement that would exceed economical or­ suffered as a result of title VII of Public Law ·committee to a permanent select committee dering and quantities conducive to small busi­ 100-656, the so-called Competitiveness Dem­ in 1971 to a standing committee in 1975. tt ness participation. In other words. the SmaJJ onstration Program. Further, as we cut back has been my great honor to serve with and Business Protection Act defends against "um­ on the defense budget. the procurement mix ~ my distinguished colleagues on a com­ brella" contracts-an agency practice that will undoubtedly change to favor buildups in mittee rich With history and accomplishments. combines several smaU contracts into one the non-small business areas. The time for As ranking minority on the Procurement Sub­ lar:ge multi-function contract action is now! The Small Business Act states committee. 1 am particularfy concerned with This practice of contract aggregation, also unequivocally that it is the policy of Congress small business Federal procurement opportu­ 'known as "'bundling" or "'bid consofldation" is, to insure that a fair proportion of the total pur­ nities. And I would like to address that issue by its very nature, inimical to small business ,ohases and contracts or subcontracts for today. participation in Federal contracting. Contracts property and services for the government be Mr. Speaker. in reviewing the statistics tor that are "bundled" effectively eliminate small placed with small business enterprise. H.R. fiscal year 1988, I note that small business business as prime contractors because only 22.7 4 is consistent with that intent Bid con­ firms accounted for $26 billion of the $174 bil­ Jarge businesses with the concomitant finan­ sotidation is not lion in all Federal prime contract purchases, or cial and technical resources can respond. While H.A. 2351, the Women's Business 15 percent of total prime contract procure­ The House Small Business Committee has Equity Act. is a multifaceted bilJ, several provi­ ment Fll1her, small business subcontractors been concerned about this problem since sions are .important from a procurement point won about $27 bilJion in awards from prime 1983, when it considered H.R. 2133, an omni­ of view. H.R. 2351 requires the head of each contractors on Federal projects. Jn addition, bus small business procurement bill. Unfortu­ Federal agency to establish goals for for those contracts under $25,000, Which to­ nately. because of other issues. that bilJ never Women's Business Enterprise participation. taled $21 billion, small business won $10 bil­ came to the floor. Bundling cropped up again Goals shall be jointty established by the SBA lion, or 46 percent The combined total of in 1985, when former chairman Mitchell sent a and the agency and shall be a realistic reflec­ small business ,participation in Government letter to then Secretary of the Army, John tion of WBE capabilities. Any goaling dis­ contract awards is $63 billion or 32 percent of Marsh, requesting that the Army suspend agreement shall be submitted to OFPP. The the $195 billion in total awards. ~his is a 1- seven consolidated contracts because they head of each agency shall strive to expand percent increase over Jast years 31 percent were unduly restrictive of competition, that is, WBE participation in each industry category Impressive as that figure is, I believe we need small business was being locked out In 1987, utilized by the agency. to renew our efforts to increase small busi­ the committee had a modicum of success H.R. 2351 reaffirms Federal procurement ness participation ·in Federal procurement. when it convinced the Appropriations Commit­ policy that .promotes maximum practicable op­ I firmly believe that small business will lead tee to report language on H.J. Res. 395, the portunities in contracts and subcontracts for America into the 21st century. Strengthening fiscal year 1988 continuing appropriation, ex­ WBE participation. It also requires prompt pay­ small businesses participation in Federal pro­ pressing concern about bid consoldation. H.R. ment from prime contractors to subcontrac­ curement will provide America with the neces­ 2274, therefore, continues and refines the tors. For contract purposes it defines WBE's sary competitive capability. As small business committees legislative effort to preserve small and requires awarding authorities to certify champions, we must ensure that small busi- business prime contracting opportunities. maximum opportunity for WBE's on subcon-

• This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

39-059 0-91-19 (Pt. 7) 9708 EXTENSIONS OF REMARKS May 8, 1990 tracting. H.R. 2351 further requires offerers/ For most of their work RTC acts as receiver or any other machines they make, machine bidders to describe WBE efforts and requires or conservator. Due to the uncertainty of the tools also reproduce themselves. Thus, at the the SBA to submit an annual subcontracting actual number of assets being taken over, heart of the industrial health of any nation is report to Congress on plans/ agencies not in RTC's procurement budget could reach over its machine tool industry, and for decades this compliance. Finally, H.R. 2351 requires each $1 billion. Approximately half of that amount is industry was the very badge of U.S. manufac­ agency to make affirmative efforts to identify expected to be for legal work and the remain­ turing prowess. The correspondence between and solicit offers from WBE's. H.R. 2351 re­ der for asset management and repairs to real the emergence of the American machine tool quires each agency to include at least one bid property and construction. Without my bill, Mr. industry and the American economy in the from a WBE for all purchases under $25,000. Speaker, I am afraid small business will be 20th century was no coincidence. I think it is important to remember that while locked out of procurement opportunities with It is also no coincidence that the erosion of WBE's are the fastest- growing segment of the RTC. It is a well-known maxim that com­ the U.S. machine tool industry parallels the business today in America, and now in fact petition drives down prices. My bill would decline in domestic manufacturing. In 1965, account for over 30 percent of all businesses, open up the RTC procurements to small busi­ U.S. tool builders were the most productive they only receive about 1 percent of all Feder­ ness participation-increasing the number of anywhere, with more than 28 percent of total al procurement dollars. Most WBE's will tell bidders/suppliers and thus maximizing the worldwide production. By 1986, the U.S. share you that they have never been awarded a budget of the RTC. was less than 10 percent, and foreign manu­ contract because of goals. They got a con­ My second bill, Mr. Speaker, would require facturers supplied 49 percent of all the ma­ tract because they were the low bidder and the SBA to employ a traditional procurement chine tools used in the . In 5 could deliver a quality product within specific center representative at each awarding au­ short years, from 1981 to 1986, the number of timeframes. t1owever, they would never have thority in the Washington metropolitan area U.S. machine tool plants shriveled by one­ had the opportunity to bid if it was not for whose procurement budget exceeds $600 mil­ third because of bankruptcies, takeovers, and goals. The provision in H.R. 2351, mandating lion annually. Currently, the SBA is three reductions in capacity. That figure, moreover that at least one WBE bid be considered for PCR's short of this objective. My bill author­ does not include the number of firms that all purchase orders under $25,000, should izes residency and a budget to correct this went "hollow," that is, became importers and open the market to women-owned businesses critical shortfall. salesmen for machines produced in Asia and that are suppliers, manufacturers, or in the The Washington metropolitan area is cur­ elsewhere." service industry. Again, the requirement of rently covered by 7 traditional PCR's, plus one While small business is the backbone of having at least one WBE bid is not a set­ PCR who travels from Philadelphia to cover manufacturing, many small businesses cannot aside, but merely a way to open the market to two installatons in Maryland. By the addition afford to buy new, costly machine tools avail­ WBE companies. The WBE still needs to be of three TPCR's, SBA could expand its cover­ able in today's market. They can, however, if the lowest responsible bidder and provide the age so that it included the seven Cabinet-level my bill is adopted, buy used machine tools service or material in a timely manner. This is civilian agencies with the largest acquisition from the government and upgrade to CNC or a crucial provision since the vast majority of budgets, all over $600 million annually. Three machine cell capabilities. The Army alone has all Federal contract actions, about 98 percent, additional TPCR's would enable SBA to better about 41 ,000 items of excess IPE of which are for amounts of $25,000 or less. This is monitor the small business programs at all only 3.5 percent are of foreign manufacture. also the most common point of entry for small Federal agencies in Washington. Making this huge inventory available to small business in the Federal procurement process. SBA would assign resident coverage to the business will recycle important machine tools If enacted and successfully implemented, this Department of Agriculture-over $600 million and boost the manufacturing base of America. provision will greatly increase WBE contract­ annually; the Navy Sea Systems Command­ Mr. Speaker, we are in a global battle for ing opportunities. over $11 billion annually; and the Environmen­ market dominance. America's small business, Mr. Speaker, this week, "Small Business tal Protection Agency, with an annual budget the fourth greatest economic power in the Week-1990," I am introducing three impor­ over $1.5 billion-including the Superfund pro­ world, plays the pivotal role in deciding Ameri­ tant bills to further small business contracting gram. The first two installations are now cov­ ca's future. I urge all my colleagues to support opportunities with the Federal Government. ered on a liaison basis and the third has not America's small business through the adop­ The first bill is entitled "The Resolution Trust had a PCR for several years. A resident PCR tion of my bills. Let us all work together to Corporation Procurement Regulation Act of at these installations should significantly in­ make small business week every week of the 1990." Simply, this bill would subject the Res­ crease their opportunities for small business year. Then small business will truly have the olution Trust Corporation to the Federal Acqui­ concerns. The additional TPCR's would also capability to lead America into the 21st centu­ sition Regulation issued under section 25(c)(1) have liaison assignments at 6 to 1O agencies ry. of the Federal Procurement Policy Act. The not currently covered. Resolution Trust Corporation [RTC] is the Finally, Mr. Speaker, I am offering the Small agency created to sell assets of the insolvent Business Machine Tool Access Act of 1990 to "JOURNEY TO FREEDOM," BY savings and loan industry. provide for small business access to excess NICHOLAS DIMA The agency started gearing up early this industrial plant equipment at DOD. The trans­ year and expects to continue for at least 6 fer of excess IPE would increase small busi­ HON. JAMES A. TRAFICANT, JR. more years. RTC states that 90 percent of its ness participation in DOD contracts, assist OF OHIO funds are nonappropriated and that though DOD in meeting its annual small business IN THE HOUSE OF REPRESENTATIVES they are not required to follow the FAR, they goal and improve the defense mobilization use FAR guidelines for much of their procure­ base. Tuesday, May 8, 1990 ment. RTC has the authority to offer a 3-per­ Manufacturing is the life blood of a nation­ Mr. TRAFICANT. Mr. Speaker, I rise today, cent price differential to minority and woman­ it is the measure of a nation's sophistication approximately 2 weeks prior to the national owned businesses up to $2 million in acquisi­ and capability. To manufacture is to control elections that are to take place in Romania, to tion dollars for fiscal year 1990. The agency your destiny. America needs to strengthen her pay tribute to Nicholas Dima, author of the in­ also offers bonus points on technical evalua­ manufacturing capability. I would like to quote sightful book Journey To Freedom. tions to minority and woman-owned business from a fascinating book on the state of the Journey to Freedom describes the history of and has a minority and woman-owned busi­ American machine tool industry today, called communism in Romania through the life of the ness program director in Washington and rep­ When the Machine Stopped by Max Holland. author. It documents the dramatic effects of resentatives in their regional offices. RTC has Machine tools are in fact the "mother" or Communist subjugation on the average indi­ no small business set-aside program. My con­ "master" machines, the machines that make vidual and the entire nation and, at the same cern is that since the RTC is not required to all machines. Every manufactured product is time, demonstrates the complete devastation follow FAR, they may not implement small made either by a machine tool or by a ma­ of the Romanian culture by Communist dicta­ business programs such as making small busi­ chine that was made by a machine tool. Ma­ tors. In order to survive, individuals were ness set-asides, making referrals to the 8(a) chine tools, for example, take all the metal forced to forsake their families to seek accom­ program, the requirement for subcontracting forgings that go into an automobile and fash­ modation with the political system. Journey to plans, certificates of competency, etc. ion them into a finished car. But unlike cars, Freedom is one man's personal struggle May 8, 1990 EXTENSIONS OF REMARKS 9709 against totalitarianism that has taken root in crease by 15 percent of every insurance dollar representative of President Bush to the his native nation. earned in excess of $3,000,000, until the de­ Multilateral Assistance Initiative for the As the May 20 national elections approach, duction phased out when insurance company Philippines, a World Bank-led consortium of the Romanians have a chance to choose their income reached $15 million. In determining 19 donor countries and a half-dozen multi­ own political system, one that is not at odds eligibility for the deduction, small property and lateral agencies. The group was formed in July 1989 to coordinate foreign-aid pro­ with their traditional values. The United States casualty insurance companies would be sub­ should help ensure that those elections are grams and attract more overseas investment ject to the same rules for determining insur­ to alleviate poverty in the Philippines. fair and free by sending a delegation there to ance income and assets as are small life in­ The group pledged $3.3 billion in econom­ monitor them. As the center for the free world, surance companies. ic aid for the Philippines in 1990; it will hold the United States should consider such an ini­ Mr. Speaker, I am pleased to cosponsor a pledge meeting for 1991 aid sometime in tiative a responsibility. this legislation introduced by Mr. THOMAS, and this year's second half. Japan is the biggest Of all East European nations that have I urge my colleagues to join us in this worth­ donor, with about $1 billion pledged, fol­ taken the path toward freedom and democra­ while effort. lowed by the World Bank and the Asian De­ cy, the Romanian people have sacrificed the velopment Bank. most. Mr. Dima's book outlines the unique The Bush administration pledged $200 Communist experience in Romania and dem­ million to the assistance initiative this year, onstrates just how much Romanians have suf­ but Congress approved only $160 million. fered over the past 40 years. Throughout GOOD NEWS FROM THE However, with military aid, the U.S. is con­ those years, Romanians were extremely disil­ PHILIPPINES tributing $545 million in direct assistance. lusioned with the West because no move was Mr. Richardson said the Bush administra­ tion is proposing $200 million in direct as­ made by any Western nations to free them HON. STEPHEN J. SOLARZ sistance. from their subjugation. On the eve of Roma­ OF NEW YORK Mr. Richardson said the Bush administra­ nia's first elections since World War II, we IN THE HOUSE OF REPRESENTATIVES tion is proposing $200 million for 1991. He shouldn't let them down again. The least we Tuesday, May 8, 1990 plans to take up the proposal with congres­ can do is send a delegation there to help sional leaders soon. Mr. SOLARZ. Mr. Speaker, I rise to bring to ensure that those elections are fair and free. The renegotiation of a lease on U.S. mili­ the attention of the Members an excellent arti­ tary bases in the Philippines won't affect cle, which recently appeared in the Wall the Bush administration's economic aid pro­ INTRODUCTION OF THE SMALL Street Journal, concerning the foreign invest­ gram, he said. However, he acknowledged PROPERTY AND CASUALTY IN­ ment climate in the Philippines. that Congress may cut economic assistance SURANCE COMPANY EQUITY At a time when it sometimes seems as if if the U.S. is required to provide more mili­ ACT OF 1990 the only news in the American media about tary aid in return for extending the bases the Philippines is bad news, I think it is impor­ agreements beyond the 1991 expiration HON. ROBERT T. MATSUI tant that we don't ignore the good news or date. Preliminary talks on the leases are to become overly pessimistic about the situation begin May 14. OF CALIFORNIA Mr. Richardson, who was in Manila at the IN THE HOUSE OF REPRESENTATIVES in that country. In this article, , who is onset of the coup attempt in December, re­ Tuesday, May 8, 1990 President Bush's special representative to the peated earlier warnings from Washington that U.S. aid to the Philippines will be cut Mr. MATSUI. Mr. Speaker, I rise today to Multilateral Assistance Initiative to the Philip­ off by law if there is a successful coup join with my colleague from California, Mr. pines and who has traveled to the Philippines against President Corazon Aquino. He said THOMAS, who is introducing The Small Proper­ several times over the past few months, indi­ other donors likely would halt aid too. ty and Casualty Insurance Company Equity cated that the principal aid donors remain But Mr. Richardson said the likelihood of Act of 1990. confident about Philippine economic pros­ a successful putsch diminishes as the 1992 As a Californian, I am painfully aware of the pects and are unlikely to reduce their levels of presidential election grows nearer. He also personal and financial hardships that were support. said the Philippine business community "is caused by the massive Loma Prieta earth­ Mr. Richardson, who has an outstanding increasingly well aware that the prospects quake last fall. I also sympathize with those record of distinguished public service span­ for the Philippine economy are good if they who have been harmed by hurricanes, torna­ ning several decades, including several Cabi­ can sustain progress along present lines. dos, floods, and other natural disasters. net positions, further commented that foreign There is great potential for disaster if a While I realize that we cannot control investors are still considering investments in coup attempt should succeed." Mother Nature, we can at least ameliorate the Philippines, despite last December's coup Since coming to power in 1986, the Aquino some of the financial costs of natural disas­ attempt. After visiting Hong Kong, Mr. Rich­ government has beaten back six coup at­ tempts by rebel soldiers. The December ters and accidents through property and casu­ ardson noted that private investors there, as coup was the most serious, claiming more alty insurance. We should strive, therefore, for well as in Taiwan, were particularly interested than 100 lives. Mr. Richardson likened rebel a system where property and casualty insur­ in investing in the Philippines. leaders, several of whom remain at large, to ance is available to those that want it at com­ I commend this article to my colleagues. 1930s Italian fascists, "whose only program petitive prices. [From the Wall Street Journal, Apr. 30, was to make the trains run on time." Competition in the property and casualty in­ 1990] Despite persistent rumors of a seventh surance industry is clearly enhanced by small­ coup, Mr. Richardson said foreign compa­ sized insurance companies. Small companies RICHARDSON SAYS AID DONORS UPBEAT nies are still considering investments in the ABOUT PHILIPPINES often provided much needed coverage which Philippines, attracted by the country's edu­ uted significantly to emec gee q plan­ OF lllCHIGAJ!I DI THE HOUSE OF~ ning proee;ectives APCO. tive officer of Fairchild Space & Defense Corp. Dr. James Bierden, of North Providence, RI, Throughout his career, Art McOole has began teaching math at Rhode Island College His loss especially struck me because I had demonsbated exemplary personal and profes­ my first opportunity to meet him only a few in 1969 as an assistant professor. In 1973, Dr. sional decfication at home, in his work. and in Bierden became an associate professor. In short weeks before his death. a meeting that every instance which called for his assistance. was characterized by his vitality, his depth, 1977, he became the assistant dean of arts As a result, he has received virtually every and sciences, and in 1980, he became the as­ and range of experience, and his ''tell it like it honor which APCO can bestow upon one of spirit_ I had looked forward sociate dean of arts and sciences. In 1982, is" to many similar its members. meetings with him in years ahead. I know Dr. Bierden was named as professor of math the I am sure my colleagues are pleased to join my colleagues will join with me in expressing and secondary education. He is a member of me in recognition of Art's lifetime of public the Rhode Island Math Teachers Association, sorrow to Dick Delauer's family and his cot­ service. Mr. Speaker, it is with great pride and leagues in the aerospace and defense indus­ the Association of Math Teachers in New respect that I rise to salute the lifelong ac­ England, and the National Council of Teach­ tries. FaS"child's announcement of Dr. De­ complishments and selfless dedication of Art Lauer's death follows: ers of Mathematics. McOole. Dr. Bierden has dearly shown his commit­ Dr. Richard D. DeLauer. Chairman of the Board Fair­ ment and dedication to academic excellence and Chief Executive Officer of child Space & Defense Corporation. Ger­ while at Rhode Island College community the CONGRESS HELD IN LOW mantown. Maryland. passed away in Los An­ aver the years. Dr. Bierden has also contribut­ ESTEEM geles. California, on April 22, 1990. He was ed counttess hours of service to local groups born September 23. 1918, in Oakland, Cali­ within Rhode Island. Dr. Bierden CtBTentty fornia. and has been a resident of Los Ange­ serves as chairman of the Community Way Al­ HON. BILL LOWERY les since 1958. locations Committee for the United Way of OF CALIFORNIA From 1981 through 1984, Dr. DeLa.uer Southeast New England. He has been a served as Under Secretary of Defense for DI THE HOUSE OF REPRESENTATIVES member of the United Way since 1979. Research and Engineering in the Depart­ Tuesday, May 8, 1990 ment of Defense. He subsequently organired It is with great pleasure that I congratulate his own defense counseling firm. The Orion Dr. Bierden for all his outstanding efforts on Mr. LOWERY of California Mr. Speaker, Group, Ltd. before assuming his position behalf of Rhode Island College and his com­ never in the history of our great country has with Fairchild in 1989. munity. I wish him continued success in the Congress been held in such low esteem by A graduate of Stanford University in 1940, his Mure. the American people. This unfortunate fact he received Ph.D. from the California Institute of Technology in 1953. He served has given rise to much agonizing over ration­ as an Aeronautical Engineering Officer in TRIBUTE TO ART McDOLE ales, solutions, and cure-alls. the U.S. Navy from 1943 to 1958. and par­ Some point to former Speaker Wright and ticipated in experimental development of HON. LEON E. PANETIA other cases of ethical misconduct as the nuclear rocket propulsion technology while cause. So, in a flurry, we rush to judgment at the Los Alamos Scientific Laboratory. He OF CALIFORNIA and pass broad, new ethics laws. is the co-author of two books on nuclear DI THE HOUSE OF REPRESENTATIVES Others tout the apathy of the average rocket flight. Tuesday, May 8, 1990 From 1958 until 1981, Dr. DeLauer was an American voter and cite lower and lower voter Executive Vice President and member of the Mr. PANETTA. Mr. Speaker, I rise today to turnout statistics. So we rush to pass a uni­ Board of Directors of TRW, Inc.• during pay tribute to a tireless public servant and a form poll closing bill, blaming apathy on incon­ which time he was instrumental in the de­ truly outstanding man from the 16th Congres­ venience. velopment and implementation of systems sional District of California, Art McDole. I am Still others compare our reelect ratios with engineering and technical direction method­ pleased to have this opportunity to recognize the Supreme Soviet, conveniently ignoring ology for the Air Force intercontinental bal­ those Members who retire, run for other listic missile programs and various space, de­ the accomplishments and lifelong service of fense, and electronic systems. this truly exceptional citizen of Monterey office, or pass away. Their complaints have He was a member of the National Acade­ County. taken root in a movement to limit congression­ my of Engineering, a Fellow of the Ameri­ Art McDole has been a member of the As­ al terms. can Institute of Aeronautics and Astronau­ sociated Public-Safety Communications Offi­ Yet, if we are to regain the respect of the tics and of the American Astronautical Soci­ cers (APCO] for more than 40 years. During American people, we must be willing to face ety, and had served since 1972 _as a mem~r this time he served as chairman of the APCO the underlying and fundamental flaw in our of the Defense Science Board m the Office Regulatory Review Committee for 10 years, system: the gerrymander. of the Secretary of Defense. He was current­ ly a member of the NASA Advisory Council, and has personally guided the progress of the The gerrymander locks incumbents into the Air Force Scientific Advisory Board, the association and provided a universal and bal­ place, stifling the accountability our founding Air Force Studies Board of the National Re­ anced public safety perspective for APCO fathers built into the Constitution, and encour­ search Council, and the California Council from the standpoint of Federal, State, county, aging a mood of invincibility. The gerrymander on Science and Technology. He formerly municipal, and local . government entities. destroys competition. Noncompetitive elec­ served as a member of the Board of Gover­ Throughout his years of service, Art directed tions invariably lead to voter apathy and low nors of the Aerospace Industries As.5ocia­ the formation of numerous community participation. tion, the Board of Trustees of the Universi­ projects. Art led the effort to establish an The 1991 redistricting will set the tone for a ty of Redlands, the Engineering Advisory Council of the University of Southern Cali­ Emergency Broadcast System for Monterey decade. Will we rescue this great institution fornia, the Advisory Committee of the Stan­ County, installed an educational television from the depths of public disgrace by insisting ford University School of Engineering, the system for the county office of education, in­ on a fair and equitable process? I certainly Advisory Committee of the Institute for the stalled the county's medical network for emer- hope so. Advancement of Engineering, the Board of

• - • - - • .. - ...... - ~--~ .... _ __._...... ___ --- # ~ ~. - ...... ___...... __.._ May 8, 1990 EXTENSIONS OF REMARKS 9711 Visitors of the Defense Systems Manage­ and groups to make this a better country. tion. to combat drug abuse, homelessness, ment College, the Naval Research Advisory These people are deserving of the recognition environmental threats, AIDS, hunger, illit­ Committee, and the Associates of Caltech. they receive from the Presidenfs program, eracy and the myriad other problems that He also served as regional chairman for the afflict all parts of society. and we awe it to them and to the country to National Alliance of Businessmen and as a Mr. Bush's "" Director of the Los Angeles Area Chamber promote their work. may be idealistic, even naive. But the idea is of Commerce. He was Vice Chairman of Mr. McAfister is right. Thousand points of working. And that's no joke. Governor Reagan's Task Force on Califor­ light may be idealistic, but it is working. nia Transportation in 1968, and was found­ BUSH'S IDEA LIGHTS F'LA1u: Ill HEARTLAND ing Chairman of the American League for

ho·ve played behinc~U1e-scenes roles says 15th Wanl alde:rmanic chief of staff College. lnow Kennedy-King College> int.o during his 40 years in public life. and en­ Bruce Crosby, who ran against Savage in giving him a second cbaoce. But at Wilson. gaged Savage in an extended interview. 1982 but supports him f.oday. '"He bas rela­ "I was no less of a troublemaker... during which he spoke frankly about his tionships that have stood from the day he Fortunately. he was drafted. he says. politics and his life. He talked about child­ was born t.o today. "lbat.'s what made Harold "before they kicked me out." In the army, hood street fighf.s. his family, his feelings Washington a st.ar. and it's what's going t.o he scored high on milit.ary aptitude tests toward Whites. the quarrel he bad and lost re-elect Gus Savage_" and was "thrown in with something I never with Martin Lnther King, Jr.. the one he Savage and Washington both were stu­ thought existed: blacks who bad achieved won with the police department's ·'Red dents at Roosevelt University in 1950. Their things." Squad... And. of course. he spoke about stamping ground was a little restaurant Savage began reading voraciomly to catch what happened in the back seat of the limo. called Annie's across the street from the up with his bunkmates He recalls mating His is an astnnmhing t.ale. one that covers school in the Pick-Congress Hot.el. Their as­ his father send him. one book at a time. a the .sweep of black politics in this half of sociates inc1uded playwright and singer 2-t-volume set called World's Greatest the city's century. Oscar Brown. Jr.• Timuel Black, and Demp­ Poetry. When the interview was over, he re­ sey Travis. now a real-estate mogul and It surprises even him that he fell so bard marked that he bad stopped retom:ing local historian.. Over freneh tries at Annie's. for verse. He says, •-w-Jth all the hostility phone cans from writers and reporters. 'Tm they traded licks in heady, perpetual verbal that was in me. the belligerence, and the vi­ a warrior... he said. "'I don't give a damn jam session. "'We used U> have the damndest olence. there was always: a lot of dreaming_ I what you write." arguments," says: Travis. Black mealls that spent a lot of time by ~IL I had a large Yeah. I think you can call him the uchi­ Annie's owner let them hang out an after­ family. but I always found ways t.o hide tect of the black independents.. I mean. you noon. but he wouldn't seat them for lunch.. away and think and dream.." have U> give Gus his due: He mapped out ..Stnnge as it may sound. at the time, One book awakened him: Gunnar Myr­ the whole path that led U> the election of a blacks were not welc:ome at most Loop res­ dal's American Dilemma. a pioneering anal­ blad. mayor.-Political consultant Sid Or­ taurants." Black says. ysis of racism. Before reading it, Savage had dower. Savage fashioned a response; He organized joined black servicemen in protests against When you think of the struggle for black black and whit.e studenf.s t.o troop into discrimination on the base. but he calls political empowerment. you probably think Annie's at ten every morning. take over the those '-'visceral" battles. "I was simply em­ of Harold Washingtan. By all accounts. booths. and sip coffee until the luncheon bittered about the question of race. and 1 without Savage there wouJd have been no crowd bad been driven away. "His method carried that into the service from my child­ Mayor Washington. was simple."' SQS Black. "Go in there and hood." American Dilemma "t.aught. me how Most of the battles Savage fought have do not move."' much I didn't know about what I should been forgotten now. but for a time. they In a way, it was a family legacy. know the :roost about." be says. "I came out captured black Chicago's hnagination. He He does have root.s.-Political activist of the service with an attitude: I wanted t.o first made the news in 1946. when he Jed ·a Richard Bunett.. leal'n.." prof.est over- the mndition of vet.er.ms• hous­ When Savage•s son. Thomas. married. he He went through Roosevelt on the GI Bill ing.. He helped organize the 1948 packing­ gave bis bride. Dreila, the wedding ring that and was offered a stipend to say on as a house wmkers' strike. along with Charles Savage's great-grandfather Alexander gave t.eaching assistant in the Department of HQ'~ labor adivist Addie Wyatt, and Sam t.o his bride in the late 1860s. Alexander and Philosophy. but went t.o Kent law school. Pan:s. now a pillar of the 20th Ward Regu­ his wife bad been slaves on a plantation out­ where be was an intercollegiate debating lar Democratic OrgaDiz:ation. side of Macon. Georgia. until Union general champ his first year. He was forced out Almost every year after 1950. Savage man­ William T. Sherman marched through the during his second year after getting into an aged the campaign of a black independent area. freeing slaves and reducing planta­ argument with a professor in which. Savage challenger to the Regular Democratic Orga­ tions to cinders.. Savage's father, 'lbomas, .concedes, "I was disrespectful:' nization. '"In those days the strategy was. their grandson. brought his wife north Gus and Harold would get mad and can they knock you dmm and you come right during the Pirst World War. when Northern each other blankety-blanks. but they bad. with another c=andidate ., says political packinghouses were recruiting blac.ts from wouldn't Jet anybody else say that about organimr Ricbanl Barnett. Southern farms. ..They bad no idea they fhem.-Jl'ormer city department head Bren­ Some of Savage's for.ays were andaejgus= were strikebreakers." Savage sa~ "AD they etta Howell Barrett. He put. together Lemuel Bentley's 1959 nm knew was. get in that 1::Joxear1 and get out a The most interesting thing about any poli­ for city clerk-the first major black attempt day lat.er with a paying job_" tician is the relationsb:iJlS he forges over at a citywide office-which won 60.000 pri­ Savage's mother scrubbed floors. His time. Savage bas attracted steadfast loyal­ mary v~ he managed HaroJd Washing­ father retired as a skilled steelwork.er and ists. such as Hei:man Gilbert and Brenetta ton's path.breaking 19Tl mayoral bid. which union grievance officer. He was '"fiery and Hmre11 Barrett-who nm the city Depart­ ent Wboily unnoticed in publications like c:ourageous-too much SO, "Savage says. ment of Consumer Services under Mayon; the one yau're reading now. "'The kind of guy who would not take shit Washington and Eugene Sawyer. They both Bnt sometimes he won: Savage led a con­ off anybody. And I mean anybody_" wrote for eommunity newwrs be pub­ tingent of distinguished Chicagoans U> The family-ten in all-lived in the rear lished. helped him orgalliR nunpaigns and Gary, Indiana. t.o persuade political consult­ half of a "chop-Op" apartment at 4%12 served on his congressional st.at!.. ant and newspaper editor Chuck St.one to South Cottage Grove Avenue. At the t.ime. More interesting are the friendships that drop bis support for Richard Ha.tchel"s ~ the east side of Cott.age was white. the west bad their spells of ri'Yalry. Savage bas bad ponent. thus allowing Hatcher to become side blaek.. "To get to the lake t.o swim. you many friends to whom be bas t.aken excep­ the first black big-eity mayor in the United bad to fight... Savage says. After sneaking tion. and enemies of whom be has spoken States. -rt was his eonscious:oess that into Comiskey Park, "you bad to fight your fondly. aroused us." says activist Timuel Black. way out of Bridgeport.,... Wilson Prost. for one. Ji'or the past 30 Savage later helped lead the fight t.o break His father "'would caution me that be did Year&. ward committeeman Prost has kept the race line in the Chicago Transit Author­ not want anything to happen t.o me, but he the Regular Democ:ratic Organization alive ity's largest union. would not admcmish me or chastise me. I re­ in Savage's Second District-where it used He also is credited with a founding role in .alme in hindsight that he felt a liWe pride_.. to be Savage who ran the ho6tile outpost. the Chicago Lea,gue of Negro Voters.. ·~e At 42nd and Cottage. Savage fell in with a Prost. a eiassmat.e at Wendell Phillips High. was gigantic in the movement." says former local gang who called themselves the El bas beaten Savage twice in aldermanic steelworker and union activist Ola Kennedy. Reys,, and eventually became their leader. races, beaten his son. Tommy, but unsuc­ "He bad the ability t.o excite. motivate. and He ~ "'When I came up, you didn't have cessfully sponsored two candidatec; t.o nm organize people at a time when they needed any ambitions.. You didn't have any role against Savage for Congress. Prost reported­ inspiration_ The real t:estament to him is models.. All the things you aspired t.o were lY will back Savage's opponent Mel Reyn­ what we were abJe t.o do under bis guid­ antipJciaJ The same things you see black olds this time. "Despite how constantly and ance.... He was instrument.al in persuading kids aspire to now." bittedy we have opposed each other." Washington t.o run again in 1983., according He says. "'I was always in a fistfight with Savage sa:JS. "'be knows me." t.o political consultant Don Bose. who everybody.... "Gus is a formidable opponent, a fighter." helped run that nunpaign He sa.ys he entered high school at the top Prost ·says. ''His rbet.oric in the sixties was Savage ran for office five times himself of his class. but graduated from Wendell sut.tantjally the same as it is today. And he and lost before be ran five times and won. PhilJips High School 243rd out of a class of still enjoys controversy... 'Ibrougb it all be staunchly refused to ha:ve 243.. He bad one saving grace: ..I was actist.i­ The ,controversy extends to his friend­ any truck with the Regular Democrat.s.. "He cally inclined... One of his art teachers shiP" as illustrated by his off-and-on sup­ comes from the bowels of black Chicago,"" talked the administrators at Wilson Junior port from a network of white activists.. In 9724 EXTENSIONS OF REMARKS May 8, 1990 his first aldermanic campaign, he was actu­ I," Savage says, "The fact that I lost did not Savage wrote a column, "Uh-Ruh," which ally scored by one of his black opponents deter me in the least from supporting the offered detailed critiques of neighborhood for the "outside help he brought in from position he ended up taking," businesses, pointing out which were owned Hyde Park": liberal whites such as Sid Or­ Savage had marched with King in the by blacks, and which gypped customers. dower, Sam Ackerman, David Canter, and South. By 1966, when King came to Chica­ This proved to be a community service, and Rose. go, Savage was well enough established that also built a network of influencial business Except for Rose, they've drifted away and King sought him out. King had dispatched people. Today, says Green, the Citizen are hesitant to speak on the record about his aide James Bevel to the city a month papers do "better than any other of the Savage. One recalls Savage writing newspa­ earlier, to scout out the place he should live black weeklies. A lot of that has to do with per columns in which he listed the officers and the issue he should focus on. Bevel and the connection between Gus and Jesse Jack­ of the then Independent Voters of Illinois, King's other aide Andrew Young were lean­ son, who pushes a lot of advertising business pointing out which ones were white and ing toward a dilapidated stretch of West into the paper." Jewish. Another says, "Sure, he's got cer­ Lawndale, and felt that slum housing was Savage also spent a great deal of energy tain white friends, but down deep, there is a the issue that most vividly belied the myth inspiring and linking together block clubs very strong nationalistic feeling. It's hard of integration in this prosperous Northern and became well known in the process. By for him to overcome that. He thought of me city. But before he settled in, King arranged 1977, when he was walking through the as a 'different' white, but in the final analy­ for the issues to be debated in a small meet­ streets of the South Side with mayoral can­ sis, every white can't be like that." ing held just outside the city. Young and didate Harold Washington, he was so famil­ Rose says, "At times he's impossible, but Bevel faced Savage, who says he "was invit­ iar that people would stop them, Herman we've been friends long enough that it tends ed to be there as a representative of . . . the Gilbert recalls, "and say, 'Hey, Gus! Who's to roll off. His worst quality politically is militant wing of the black movement in Chi­ that you've got with you?' " that over the years he has lost many sup­ cago." But Washington became mayor of playing porters with one or another feud. He and Savage laid out an argument that, in coalition politics, and it's clear that Savage David Canter fell out over the make-up of Rose's words, "turned out to be quite accu­ does not. His current opponent Mel Reyn­ the front page of a newspaper they were rate and predictive." He said that middle­ olds has a labor liasion who pitches Reyn­ doing for Richard Hatcher in 1967. He's an class South Siders were in a better position olds to labor leaders by stressing one theme: extremely difficult personality." to lead the fight for racial equality; the "Trade unions have to deal from a coalition He adds that since Savage's wife died, in West Side's welfare-dependent poor would basis, and that includes all nationalities, 1981, "there is an erratic quality to him. not have the means to stick with King Gus, with his rhetoric, has not been one to Highly emotional. He'll get on a tangent through the stormy years to come. He said build coalitions across the line." and just develop a blindness around that." that the crucial issue, of which slum hous­ Interestingly, those people who are prob­ Rose calls Eunice, who helped run the news­ ing was just an adjunct, was the exclusion ably most often exposed to this rhetoric­ papers and offered Savage constant counsel, of blacks from political power. That should the congressmen and congressional aides "his true gyroscope." be addressed first, Savage said, and unlike who work beside Savage daily on Capitol Savage's thorniest friendship was with slum housing, it was a battle that could be Hill-see his fiery racial speeches as essen­ Harold Washington. Savage says they were won. tially just a prop in his political theatre, not the two main student leaders at Roosevelt. When he'd said his piece, King "came up as the full measure of the man. Congress­ Although the student body was more than on stage and supported Andy and Jim Bevel man Marty Russo says, "I've seen Gus and 80 percent white, Washington was elected and that, of course, won the day," Savage worked with Gus and I fly back and forth president of the student council, Savage says. "Once King spoke, that was it." King struck the West Side like angelic with Gus, and my botton line with Gus is, I says, "because I was the alternative." lighting, but, "as I predicted," Savage says, think he uses the black-white issue in an in­ In 1980, both were elected freshmen con­ King failed to change housing conditions. flammatory way. He plays to a certain con­ gressmen. A year later, after the 1980 "The people in the building he rehabbed stituency and I think he would be much census was completed, Washington pro­ wouldn't even pay him rent." more effective if he didn't. But one-on-one, posed a new legislative map that strength­ More fundamentally, says Savage, "I have he is a totally different person. He's a ened his incumbency by taking middle-class a question about integration as a means of bright guy, funny, articulate. On issues, he precincts away from Savage, and pushing liberation. It's a means but not the only knows what he's talking about." Savage's district into the near southern sub­ means. The Irish in Northern Ireland are As for his attendance record, it was the urbs. "This wasn't just another of the spats not pushing for integration. I think blacks worst in the House during Savage's first one might have with Gus over the course of in America should also consider-I don't say year, and he made no apologies about that. 20 years-it produced a serious rupture," adopt, but consider-the strategy of inde­ He said he was elected to agitate as well as says Rose, who had worked closely with pendence. But blacks need more power legislate. But since then his voting partici­ both men. before they're in a position to decide. We're pation has reached 90 percent. With some modifications, Washington's not in a position to integrate or separate He receives, to no one's surprise, excellent map prevailed, though some say the remap right now. King sacrified his life but the ratings from the American Civil Liberties ultimately worked to Savage's benefit. The schools in Chicago and the housing in Chi­ Union, the National Abortion Rights Action black suburban working poor have proved to cago are more segregated than ever-be­ League, and the AFL-CIO, among others. be a loyal constituency. "It may have been cause he did not have the authority to inte­ And he has introduced a fair amount of leg­ the best thing for him," Gilbert says, "be­ grate. Just as Elijah Muhammad and islation that created jobs-primarily by in­ cause the more middle class you are, the less Marcus Garvey did not have the power to creasing minority set-asides from the De­ you like people like Gus." Rose concurs. He separate. The immediate problem is gaining partment of Defense, Federal Highway Ad­ says that although Savage and Washington enough authority to be able to decide." ministration, and other contracting agencies said many of the same things, "in style and He says, "I also questioned King's tactics of government. In 1984 he also wrote laws mode, the rising middle class doesn't want of nonviolence, but that's another ques­ mandating that the Department of Housing to hear too much of Gus's anti-white rheto­ tion." and Urban Development spend 15 percent of ric. It's perceived as an embarrassment, The King debate marked a chapter of re­ its advertising dollars in black-owned media. while working- and lower-class blacks prob­ newed vigor in Savage's life. He began to It's not surprising that many of these pro­ ably care less about the style, because he is run for office himself, creating the model grams benefitted his constituents; in that expressing hostilities and political views for a type of campaign that would later respect, he acts as a good, traditional con­ which they share." serve Harold Washington and Jesse Jack­ gressman. I couldn't determine by press As for Washington, Savage says, "He was son: He eschewed the traditional mecha­ time if any HUD spending went to the Citi­ looking out for himself as a politician nisms of ward organization, and built power zen papers-publisher Garth wouldn't would. Don't forget, he was a professional around block clubs and community newspa­ return my calls-but it wouldn't be unusual: politician"-meaning, apparently, someone pers. After starting an unsuccessful West There have been many instances in which who, unlike Savage, joined a Regular Demo­ Slide weekly, and editing Bruce Sagan's Bul­ Savage has created business for minority cratic ward organization. By the time Wash­ letin Newspapers, Savage founded the companies-and his boosters. He helped ington died, Savage says, they had become South Side Citizen Newspapers, which secure a defense contract potentially worth friends again. He pauses, then adds, "I can't thrive today under the guidance of his $268 million-the largest ever awarded to a say I could have beaten him. I can't say that friend William Garth. "He was a strong be­ minority firm-for the Sonicraft Corpora­ about Harold." liever in using the paper to boost people he tion, which, according to Brenetta Barrett, The relationship that gets you to the core liked," says Hurley Green, who runs the employs people from his district. In 1985, of Savage's racial views is his short, tempes­ competing Bulletin Newspapers. "Anyone Sonicraft's president, Jerry Jones, co­ tuous term of service to Martin Luther who went against [Mayor Richard J.] Daley, chaired a fund-raiser for Savage that was King, Jr. "We ended up differing, King and he backed." held at Sonicraft's headquarters.

"' --- ·- - ---• ..._ -- -- __ ------.!r - ~ May 8, 1990 EXTENSIONS OF REMARKS 9725 Savage also was responsible for laws au­ He goes so far as to point out that the em­ TRIBUTE TO TRUDY COXE thorizing the construction of the new 27- bassy entourage made several stops, and he story Federal office tower that will go up on and the woman were constantly in and out Clark Street and Jackson Boulevard: among of the car. "She kept getting back in the HON. RONALD K. MACHTLEY the beneficiaries of the $44 million in set­ same damn car-and she didn't want to?" OF RHODES ISLAND asides for minorities and women on this Before the story broke, he adds, Washing­ IN THE HOUSE OF REPRESENTATIVES project as Globetrotter's Engineering, a mi­ ton columnists Rowland Evans and Robert nority-owned company that has contributed Novak reported that Republican leaders, fu­ Tuesday, May 8, 1990 frequently to his campaigns. rious at finding one of their own snagged in Mr. MACHTLEY. Mr. Speaker, I rise today There is no indication that any of these an ethics conflict, had drawn up a "hit list" to pay tribute to a member of my community companies perform shoddy work or evade of Democratic congressman who could be who is being recognized for her outstanding similarly smeared, and Savage was at the the bidding process. But the fact that contributions to both Rhode Island and our money flows to them does suggest that top. Five days after that, the U.S. Attorney Savage uses his legislative position to help General opened an investigation into an ap­ Nation. minority-owned businesses whenever possi­ parent conflict involving Savage's son, Trudy Coxe, of Edgewood, RI, will receive ble. erties that we enjoy is a great day for Missouri's capital city. daily, this ship. the U.S.S. Jefferson Cit11. This is a great day for Missouri. This is a will be a protector of our country that em­ HON. BYRON L DORGAN great day for the U.S. Navy. bodies those freedoms.. 01' BORTH DAK~ All Missourians were honored when the Just as the freedom of our Nation may then Secretary of the Navy .James Webb Ill 'l"HE HOUSE OF REPRESERTATIVES well depend on this ship and it.s officers and designated the name of this ship t.o be the doing duty. Tuada:y, May 8, 1990 U.S.S. Jeffenon Cit11. For my wife Susie to men their freedom in other have been chosen by the former Navy Secre­ parts of the world depends upon the United Mr. DORGAN of North Dakota. Mr. Speaker, tary Will Ball t.o sponsor this ship is the States t.o maintain the beacon of lll>erty I rise today to congra1Uate the students of honor of a lifetime. shining for all humanity. Whether we speak Fargo South Hqt School for their outstanding This is the first namesake naval vessel of of this ship or whether we speak of our achiewement in the State and National ~ the capital city of the State of Missouri. and Nation. Longfeilow said it best when he tennial Competition on the Consti:tulion and penned the timeless words: t.onight the eternal partnership begins be­ Bilt of Rights. tween the people of Jefferson City and the "'Thou. t.oo. sail on. 0 ship of State Fcuteen students in Cheryl Watkins' ad­ officers and men of this nuclear-powered Sail on. 0 Union. strong and great attack submarine. vanced placement U.S. Government class Humanity with an its fears, won the North Dakota State championship, On another day, in another place, out of W"Ith an the hopes of future years, the past, another great American ship was excelling on tests about principles. Is hanging breathless on thy fate!" content. christened. The immortal poem of Henry and ~OOclS of the Constitution. Fargo Wadsworth Longfellow entitled "The Build­ May God be with you. May God be your South went on to win a unit award in poltical companion on all of your voyages. ing of a Ship," commemorated the launch­ philosophy at the nationaJ championship hetd ing of the U.S.S. C-Onstitution, Old Iron­ in Washington on May 5-7. sides, which played an important role in the defense of our Nation in the War of 1812. These hard-working students make me proud my opli1istic: for fuUe: "Build me straight, 0 worthy master! of State and its Stanch and strong, 0 goodly vessel, Sarah Conyers. David Engberg. Heather Him­ That small laugh at an disaster, RHODE ISLAND SMAI.I. BUSI­ merick. Jessica McNair. Lance Myxter, Eric And with wave and whirlwind wrestle!" Pederson, Jeffery Roberts, Justi1 Schardin. ~ OWNER.S OP THE YEAR Those words are as appropriate t.oday as Shad Ttu1ow, Meissa Tuomihen, Brandon they were in the day of the great ships of Volbright. Caroine Wagner, Maria Wlllters. sail. HON. CLAUDINE SCHNFJDER and Aaron Yeater. In admtion. the State bicen­ This ship, the U.S.S. Jefferson City, will tennial. competifion could not have been pos­ OF RHODE ISLAJO) guard our Nation's sea-lanes and protect sible without the dfdcated and voluntary ef­ American interests on the high seas. This llf THE HOUSE 01' BEPRESDITATIVES forts of May 8, 1990 EXTENSIONS OF REMARKS 9731 TRIBUTE TO DR. DAVID FARBER INTRODUCTION OF THE SMALL surance companies will be subject to equal PROPERTY AND CASUALTY Il'f- tax treatment. HON. GUS YATRON SURANCE COMPANY EQUITY OF PENNSYLVANIA ACT OF 1990 IN THE HOUSE OF REPRESENTATIVES LOW LEVEL RADIOACTIVE WASTE POLICY ACT AMEND­ Tuesday, May 8, 1990 HON. WILLIAM M. THOMAS OF CALIFORNIA MENTS OF 1985 Mr. YATRON. Mr. Speaker, I rise today to IN THE HOUSE OF REPRESENTATIVES pay tribute to a great friend and humanitarian from Reading, PA, Dr. David Farber. I am Tuesday, May 8, 1990 HON. BILL SCHUETTE pleased to inform my colleagues in the House Mr. THOMAS of California. Mr. Speaker, OF MICHIGAN that Dr. Farber has been selected to receive am today joining Mr. MATSUI in introducing the IN THE HOUSE OF REPRESENTATIVES the 1990 Maimonides Award of the Israel Small Property and Casualty Insurance Com­ Tuesday, May 8, 1990 Bonds Committee. Dr. Farber will receive the pany Equity Act of 1990, in order to correct a Maimonides Award at a special dinner at the gross inequity that exists between the current Mr. SCHUETTE. Mr. Speaker, today I am in­ Berkleigh Country Club in Kutztown, PA, on tax treatment of small property and casualty troducing legislation to amend the Low Level June 7, 1990. insurance companies and the current tax Radioactive Waste Policy Act of 1980, as Dr. Farber was born in Cleveland in 1914 treatment of small life insurance companies. amended by the Low Level Radioactive Waste and earned his bachelor of arts and doctor of Small casualty and property insurance com­ Policy Act Amendments of 1985. Few are un­ medicine degrees at the Ohio State University. panies play an essential function in the insur­ aware of the frustration States within the Mid­ He then went on to serve in the Coast Guard ance industry, by enhancing the level of com­ western compact, to which my home State of during the Second World War. After complet­ petition within the industry and by providing Michigan belongs, and in other compacts, ing his residency in Philadelphia in 1947, Dr. coverage in areas where other companies have experienced under the Federal man­ Farber settled in Reading, and we have been often fear to tread. However, small property dates of this legislation. Yet, the Federal Gov· blessed with his presence these past 33 and casualty companies are more at risk than ernment has little role under the act beyond years. are the large diversified companies to the va­ the purely technical advisory role, and that of Dr. Farber is a model citizen, actively and garies of nature-massive earthquakes and rebate collector, assigned to the Secretary of intimately involved in community affairs. For damaging hurricanes, such as those suffered the Department of Energy. instance, he has served as president of the recently by California and our Southeastern However, experts including the Office of Berks County Medical Society, the Reading States. Small property and casualty insurance Technology Assessment have reported re­ Jewish Federation, the Kesher Zion Syna­ companies also are subject to surplus require­ cently that the volume of radioactive waste gogue, and the Berkleigh Country Club. Pro­ ments that limit the amount of premiums they generated in this country has been reduced by fessionally, he has been an active member of can write, thus making it difficult for such com­ half in the past decade, and is expected to the American Medical Association, the Ameri­ panies to grow. further decline. Currently, 19 total sites are can College of Surgeons, the American Acad­ Instead of imposing an impediment to the planned to house waste which could be more emy of Ophthalmology, and a diplomate of the existence of small property and casualty com­ than adequately stored by at most 5, and American Board of Ophthalmology. Thus, Dr. panies, the tax law should at least provide a. more likely, 2, sites. Farber's devotion to his fellow man and com­ level playing field for such companies in rela­ Thus, my legislation would prohibit the siting munity is beyond doubt tion to small life insurance companies. of low level radioactive waste facilities in Mr. Speaker, although this listing alone is Life insurance companies have the benefit areas with more than 18 inches of annual reason enough to understand why Dr. Farber of acturial tables to aid in the prediction of rainfall. Not only should this result in an opti­ was chosen as the 1990 recipient of the Mai­ losses, which makes the life insurance busi­ mum number of sites, this concept is advocat­ monides Award, it is in the areas of foreign ness inherently less risky than the property ed by many environmental organizations in policy that Dr. Farber's expertise and concern and casualty business. Small life insurance order to protect water supplies from contami­ for humanity is most immediately felt. Deeply companies-those with total assets of less nation. Furthermore, my bill would pursue alarmed by the proliferation of nuclear weap­ than $500,000,000-are entitled to the small other sound environmental policies by prohib­ ons, Dr. Farber has been active with various life insurance company deduction under sec­ iting shallow land burial in areas of eligibility, groups in increasing societal awareness about tion 806 of the Internal Revenue Code. and putting responsibility for class C waste nuclear proliferation and the impact this might This legislation will put small property and squarely on the shoulders of the Federal Gov­ have upon the international system as we now casualty insurance companies and small life ernment, where waste with a radioactive half know it. Having cultivated a tremendous in­ insurance companies on an equal footing for life of 500 years belongs. sight into the intricacies of foreign policy, Dr. tax purposes. Under the bill, the small compa­ In order to protect compacted States, my Farber is constantly developing, refining, and ny deduction now applicable to life insurance legislation would indemnify them from any fi­ promoting workable solutions to the toughest companies would be made available to prop­ nancial and legal liability which resulted from problems confronting diplomats and presi­ erty and casualty companies of similar size. its provisions. Furthermore, in order to protect dents. He is also a staunch defender of Thus, a small property and casualty company the taxpayers of both sited and other com­ human rights and principled government. Fi­ with asset of less than $500 million would be pacted States, it would create a $150 million nally, his unwavering support for Israel can entitled to exclude from its insurance compa­ fund to be used at the Secretary of Energy's serve as a guideline for us all as we try to ny income 60 percent of the first $3 million of discretion for the purpose of paying claims foster real and permanent solutions to the in­ insurance company income earned each year. such as those which might be put forward by terweaved national, religious, and economic The special deduction would be decreased by members of a compact against a site State. problems which plague the Middle East. If 15 percent for every insurance dollar earned This is an appropriate use of Federal dollars, more citizens followed Dr. Farber's lead in in excess of $3 million. Thus, the small com­ since the requirements themselves were struggling with these tough issues, there is no pany deduction would phase out once insur­ made by our Federal Government. doubt that our job as legislators in Congress ance income reached $15 million for the year. However, the bill would retain the current would be made much easier. The same limitations that currently apply to surcharge structure and final milestone. It sets Mr. Speaker, it is indeed an honor for me to small life insurance companies, for purposes site location criterion which would allow some count Dr. Farber as one of my close and per­ of determining their assets and their insurance States which are currently furthest along in sonal friends, and I want to congratulate him income, would apply to the deduction allow­ the siting process to continue. Thus, it would on this most auspicous occasion. I am sure able to small property and casualty compa­ leave in place incentives for the current sites that the rest of my colleagues join me in ex­ nies. to remain open, while resulting in an optimal tending our best wishes to Dr. Farber, and we I strongly encourage my colleagues to co­ number of two to five sites put forward by ex­ look forward to working with him as we strive sponsor this important legislation and to work perts. Indeed, experts also point out that most to construct a more humane and just world for its prompt enactment, so that small prop­ projected sites plan to recoup their capital and order. erty and casualty companies and small life in- operating cost by raising fees for disposal; 9732 EXTENSIONS OF REMARKS May 8, 1990 thus a higher waste volume at each site ing the fourth year in which new incorpora­ coming retirement of nine teachers at J. should reduce fees to generators. tions averaged at least 675,000 per year. Taylor Finely Junior High School in Hunting­ I hope I may have the support of my col­ Business failures witnessed the third straight ton, Long Island. This distinguished group of leagues not only from Michigan and the Mid­ year of decline with only 49,719 in 1989. This educators will be honored on May 22, and the west compact but that of those who represent is particularly impressive given the large gratitude of their community is in order for the other compacts as well. If so few sites are number of new business formations over the day because of the scores of years they col­ needed, the Federal Government can and past few years. lectively have brought to their jobs and the should intervene to ensure they are placed in While the news for small business nationally thousands of lives they have touched during the environmentally safest areas. is good, on a regional basis the news is both their tenures. good and bad. In New England, and my home The nine are William J. Boyd, Jr., Charles F. BUSH IS RIGHT ON LITHUANIA State of Connecticut, the news has not been Carcano, Remo A. Cavalluzzi, Ronald B. Cup­ AND JAPAN very good. New England new business forma­ pernull, David P. McGrath, William H. Moles, tions declined by 12.3 percent, while business Lucy Kang Sammis, Peter J. Shelfo, and Stan­ failures increased by 22.3 percent. Given the ley C. Vansant. HON. BILL RICHARDSON impending reductions in the defense budget, Mr. Speaker, the American historian Henry OF NEW MEXICO and the high per capita defense spending in Brooks Adams once wrote, "A teacher affects IN THE HOUSE OF REPRESENTATIVES New England, the outlook does not hold great eternity; he can never tell where his influence Tuesday, May 8, 1990 promise. stops." Indeed, the contributions of these nine Mr. RICHARDSON. Mr. Speaker, many on The question .which we must address, Mr. teachers will go far beyond the classes they both sides of the aisle have criticized the Speaker, is how to spur economic growth in held or the papers they graded. They have af­ President recently for his decisions to exempt areas like New England where small business fected the minds, hearts and souls of the Japan from our unfair traders list as well as is being hit the hardest. The urgency sur­ young people of Huntington. It is difficult to his refusal to impose economic sanctions on rounding this issue rests completely on the imagine a more worthwhile or gratifying calling the Soviet Union for its Lithuania policy. Mr. fact that without a vibrant small business envi­ in life. Speaker, President Bush is right on both of ronment, economic growth cannot be sus­ I'm sure that my colleagues join me today in these issues and instead of being criticized he tained, let alone bolstered. For example, while wishing the best to each of these individuals should be commended for his courageous we in Congress congratulate ourselves on as they move forward in life. Their contribu­ action and supported on a bipartisan basis. tackling the savings and loan crisis last year, tions will not be fogotten. Mr. Speaker, one of the strengths of the we are now learning the full ramifications of one definitely unintended consequence of this Democratic party should be to support the TRIBUTE TO A.A. MILLIGAN President when he makes the right decision, legislation. I am sure that many of my col­ especially on foreign policy. leagues have heard from small businessmen The bottom line on the Lithuania issue is and businesswomen in their districts who are HON. ROBERT J. LAGOMARSINO that we cannot undercut Gorbachev at a time being denied llines of credit, or badly needed OF CALIFORNIA that he is trying to reform the Soviet system loans by their banks. And most of these busi­ IN THE HOUSE OF REPRESENTATIVES and negotiate arms control treaties with the nesses have been exemplary borrowers, Tuesday, May 8, 1990 never missing a payment or defaulting on any United States. While we strongly support self­ Mr. LAGOMARSINO. Mr. Speaker, it gives determination for the Lithuania people, we loans. Currently, there are several issues pending me special pleasure to rise today to pay trib­ cannot jeopardize our entire relationship with ute to an outstanding citizen and valued friend Gorbachev by weakening him with sanctions. in Congress with which small business is keenly interested, family and medical leave, Arthur Achille "Bud" Milligan, who is being Mr. Speaker, in the future the United States honored, on May 19, by the Ventura County and Japan will be key players on the world health insurance availability, repeal of section 2036(c), funding for the Small Business Inno­ Economic Development Association, for his scene. Antagonizing Japan by placing them contributions as a visionary community leader, on a list of unfair traders at a time when we vative Research [SBIR] Program to name just a few. These are important issues, Mr. Speak­ entreprenuer, and philanthropist. are negotiating with them to remove trade bar­ Bud Milligan entered the economic and phil­ riers to United States products would be coun­ er, and will be addressed. However, if we do not act quickly to ease the financial crisis anthropic community in 1940, after completing terproductive especially after Japan has al­ business studies at Stanford University, when ready made .some internal structural economic which has already begun to force many small businesses into failure and left thousands of he began work at the bank his grandfather adjustments to lower their exports to the founded in 1882. Two years later, he an­ United States. Instead of bashing Japan, let others teetering on the brink of failure, there will be no small businesses around to care. swered his country's call, entering the U.S. us start working with them. Again, the Presi­ Navy where he served through the end of dent, should be supported strongly. The intrinsic value of small business to the U.S. economy and our proud free market her­ World War II. itage demands that we take action now. The In 1955, Bud became president of the Bank SMALL BUSINESS IN AMERICA: money supply and credit must be eased in a of A. L·evy, and in the following 23 years, GOOD NEWS AND BAD NEWS coordinated, careful, but expedited fashion. under his stewardship, the bank grew from Not next month, or next year, but today. If we one office and $14 million to 20 offices and HON. JOHN G. ROWLAND allow our small businesses to go under, we over $329 million. This tremendous growth came as a result of OF CONNECTICUT will only exacerbate the regional effects of de­ Bud's committment to putting the bank's re­ IN THE HOUSE OF REPRESENTATIVES clining defense spending, the number of insol­ sources to work locally. The bank played a Tuesday, May 8, 1990 vent thrifts and banks, and bring to an abrupt halt the 7 years of economic growth which we large part in financing the Oxnard Frozen Mr. ROWLAND of Connecticut. Mr. Speak­ have enjoyed this decade. Food Cooperative, assuring that millions of er, I am honored to have this opportunity to dollars in farm income would be used to bene­ share with colleagues my thoughts regarding fit the local community. the state of small business in America. As this THEIR CONTRIBUTIONS WILL With Bud Milligan as president the bank is Small Business Week, it is fitting that we NOT BE FORGOTTEN earned a national reputation. He was appoint­ examine the issues facing small business in ed to the Select Task Force to Fight Inflation America. HON. ROBERT J. MRAZEK under President . In 1977, he On a national level, the state of small busi­ OF NEW YORK was elected president of the American Bank­ ness-in both the number of new business IN THE HOUSE OF REPRESENTATIVES ers Association, becoming the leader of the formations and business failures-was very country's 14,000 banks. healthy in 1989. The total number of new Tuesday, May 8, 1990 Bud Milligan has made numerous contribu­ business formations was 677,394 in 1989, Mr. MRAZEK. Mr. Speaker, I rise today to tions to the community. He has served as very close to the 685,095 in 1988, and mark- bring to the attention of my colleagues the up- president, trustee, chairman, and director of May 8, 1990 EXTENSIONS OF REMARKS 9733 more than a dozen philanthropic and commu­ be achieved only through peaceful negotia­ Robert Trowe, and Kim Zimmerman. Their nity groups and agencies, including president tions, conducted in good faith, between the sponsoring teacher was Denton Gehr, and the of the Thatcher School, and the Ventura Indian Government and the ethnic minorities district coordinator was Judy Simpson. County chairman of CARE, Inc. Bud was also in Punjab, Kashmir and elsewhere in India. I am very proud of the Reed High School instrumental in the merging of the Community The press, both Indian and worldwide, and team for doing such a fine job in a very tough Chest and AID Givers into the United Way of nonpartisan human rights organizations, in­ competition. Students are expected to Ventura. cluding Amnesty International, have repeated­ become real experts on the Cosntitution and In 1959, Bud and the board of directors es­ ly documented human rights abuses in Punjab the Bill of Rights, and are questioned by some tablished a foundation, the Achille Levy Foun­ and Kashmir. In seeking to suppress dissent of the leading constitutional authorities in the dation, which has donated more than $1 mil­ and separatism, the Government of India has country during their final rounds. lion to local community philanthropic organiza­ resorted to violence and has forgotten the These days, we read so much about voter tions and scholarships to graduating high principles of democracy upon which India was apathy and lack of interest in the political school seniors. founded. I call upon the Government of India process. Yet more than 2 million students par­ Mr. Speaker, across our country, communi­ to renounce the use of excess force, to stop ticipated in the program during the past year, ties are struggling with social and economic the human rights abuses, and to honor the and more than 33,000 teachers were willing to problems. I would suggest that had these commitments for regional autonomy which take extra time beyond their required cirricu­ communities had the benefit of their own ver­ were an integral part of the formation of India lum to implement the bicentennial competition sion of Bud Milligan, this country would be far in 1947. in their schools. ahead. Bud is a man who understands the Today, the Government of India persists in These outstanding young people and their value of service, and is respected as much for a deplorable policy of prohibiting the world's teachers provide an inspiring example to their his compassion, as his superior business press and human rights organizations, includ­ peers, indeed, to us all. skills. · ing Amnesty International, from areas such as On May 19, Bud will become the second re­ Punjab and Kashmir. This self-destructive cipient of the Ventura County Economic De­ policy allows unsubstantiated rumors to fan KOONTSES TO RETIRE AFTER 71 velopment Association's "Hall of Fame the flames of extremism. To regain the re­ YEARS AT ERSKINE Award." Mr. Speaker, it has been my privilege spect and support of the international commu­ to have known and worked with Bud in both a nity, as well as the respect and support of personal and professional capacity. For many ethnic minorities, the Government of India HON. BUTLER DERRICK years, he chaired my reelection committee, must not fear to conduct its administration of OF SOUTH CAROLINA and for many more, he provided wise and government in an open and public manner. IN THE HOUSE OF REPRESENTATIVES sage advice. Please join me in honoring Bud The world's press and nonpartisan human Milligan and his wife Jean for their service and rights organizations must be allowed full Tuesday, May 8, 1990 leadership both to his community and country. access to Punjab, Kashmir and other regions Mr. DERRICK. Mr. Speaker, I rise today to He has truly enriched the lives of those who of India. pay tribute to two very distinguished educa­ know him and many that do not, and I will By declining to open these areas to respon­ tors, Dr. and Mrs. J. Calvin Koonts. always value his friendship. sible scrutiny, the Government of India further The Koontses are retiring at the close of substantiates the widespread reports of gov­ this academic year after a combined 71 years HUMAN RIGHTS IN INDIA ernment violence and government abuses. By of service on the faculty of Erskine College in showing good faith and allowing press and Due West, SC. HON. VIC FAZIO human rights organizations access, India Now a professor of education, Dr. Koonts could calm fears and reduce speculations, ex­ joined the Erskine faculty in 1949 and is cur­ OF CALIFORNIA aggerations and distortions. Therefore, I call IN THE HOUSE OF REPRESENTATIVES rently senior faculty member. He headed the upon the Government of India to open all school's department of education until 1987. Tuesday, May 8, 1990 areas of the country to the world's press and Under his leadership, the Erskine teacher edu­ Mr. FAZIO. Mr. Speaker, the principles of in­ human rights organizations. cation program received an Excellence in dividual and national freedom and the elimina­ Teacher Education Award in 1966 from the tion of racial, ethnic, and religious discrimina­ CONGRATULATIONS TO REED American Association of Colleges for Teacher tion have been guiding principles for the de­ HIGH SCHOOL Education. He is a former member of the velopment of democracy in India, the world's South Carolina Board of Education and has most populous democracy. All of us who sup­ HON. BARBARA F. VUCANOVICH authored several books of poetry. port these key democratic principles wish His wife-Cortlandt-came to Due West in OF NEVADA India success in achieving the full implementa­ 1951 and she has three decades of service in IN THE HOUSE OF REPRESENTATIVES tion of these key principles as quickly as pos­ Erskine's department of music. She has writ­ sible. Tuesday, May 8, 1990 ten reviews for The American Music Teacher, In recent years, however, India has been Mrs. VUCANOVICH. Mr. Speaker, today the official journal of the Music Teachers Na­ plagued with increasing religious and ethnic vi­ would like to congratulate the team from Reed tional Association. Now a professor of music, olence in many sections of the country, most High School in Sparks, NV, for finishing Mrs. Koonts is a highly acclaimed concert or­ notably in Punjab and Kashmir. In response to among the top 1O finalists in this year's Na­ ganist and pianist. In that capacity, she trav­ sectarian violence, the Government of India tional Bicentennial Competition on the Consti­ eled to Eastern Europe to study an organ has unfortunately resorted to violence and tution and Bill of Rights. played by Bach to prepare for a special con­ brutal repression. I rise today to reaffirm my The members of this outstanding team from cert in honor of . the composer's tricentennial strong belief that all parties in these disputes my district included Michael Armitage, Kimber­ birthday celebration in 1985. must recommit themselves to condemn all ly Arnott, David Bernardi, Ralph Cinfio, Brenda I join the Koontses' family, many friends, acts of violence and terrorism, whenever they Degn, Jason Dunphy, Genevieve Gaustad, and colleagues in wishing them a happy and occur and regardless of who the perpetrators Steve Gill, Jenny Harcourt, Joella Harlan, healthy retirement. Their seven decades of may be. There is no room for violence and Todd Hudson, Brian Irvine, Kevin Johnson, service to Erskine is an impressive achieve­ terrorism, on any side, in this process. These Kris Jussila, Wendy Krajewski, Michelle ment. Beyond that, the couple's numerous can only serve to undermine a true and lasting Ludwig, Mark Mendenhall, Allison Miller, Tricia academic and musical contributions will not be peace between all the peoples of India. Just Nelson, Adam Pearl, Nicole Pereos, Andrea soon forgotten by any of us who have had the and lasting settlements in these disputes can Rivas, Tamaron Smith, Stephanie Trow, pleasure of knowing them.