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Home , John Bugas, Ogden Reid

January 28, 1969 CONGRESSIONAL RECORD- SENATE 19'.31 SENAT.E-Tuesday, January 28, 1969

(Legislative day of Friday, January 10, 1969) The Senate met at 12 o'clock meridian, The bill clerk proceeded to call the of representative government is the bal­ on the expiration of the recess, and was roll. ance of pawer between the three major called to order by the Vice President. Mr. MANSFIELD. Mr. President, I ask branches of the Federal Government: The Chaplain, the Reverend Edward unanimous consent that the order for the the legislative, to make laws; the ex­ L. R. Elson, D.D., offered the following quorum call be rescinded. ecutive, to administer them; and the prayer: The VICE PRESIDENT. Without ob­ judiciary, to test them against the great Eternal Father, whose love never fails jection, it is so ordered. framework of the Nation. and whose strength is sufficient for all Now patience and principle are being our needs, wilt Thou subdue all other tested by new demands on this balance. promptings that in this reverent moment AMENDMENT OF RULE XXII Congresses are criticized when they re­ sist Executive programs, not so much we may know only the prompting of Thy The VICE PRESIDENT. The Chair spirit. Speak to each of us that we may on the basis of why they resist but sim­ lays before the Senate the motion to pro­ ply because they resist. The judiciary is know Thee and gain strength to walk ceed to the consideration of Senate Reso­ and work with Thee this day. Equip our caught in a b.oiling debate about wheth­ lution 11, which the clerk will state. er it should judge the constitutionality hearts and minds and hands that we may The BILL CLERK. A motion by the Sen­ strive to heal the wounded in spirit; to ator from Michigan (Mr. HART) to pro­ of laws or whether it should also inter­ bind up the broken brotherhood; to close pret them for maximum social benefit. ceed to consider Senate Resolution 11, to States are criticized for their differences the chasm which separates man from amend rule XXII of the Standing Rules man, party from party, race from race. of the Senate. in approach or standards or wealth May we be forged into one mighty people The VICE PRESIDENT. Without ob­ whereas they once were felt to be in­ "strong in the Lord and in the power of jection, the Senate will resume the con­ violate basically to preserve the .oppar­ His might," for it is in His name that sideration of the motion to proceed to the tunity for regional and cultural differ­ we pray. Amen. consideration of the resolution. ences. Big cities, emerging as city states Mr. MANSFIELD. Mr. President, pend­ rather than as State units, look past the State capitol to the National Capitol for THE JOURNAL ing the arrival of the distinguished Sen­ ator from Idaho

WHAT THE BILL WILL Do are necessary to make recommendations Referee S. W. Keelerman, Jr., wrote from Mr. President, this bill requires the Board from time to time about the number of ref­ Loulsvllle, citing these cases in the Western of Governors of the Federal Reserve System erees in bankruptcy to hold office, and so District of Kentucky: No. 40088 was married to prescribe regulations covering the Issuance on. To find out whether credit cards are and had five children. His take-home pay ot credit cards to persons who did not re­ implicated In the growing volume of so­ was $610 a month, and his total indebtedness quest them In writing. By "credit card" Is cs.lied consumer bankruptcy cases, Mr. Jack­ was $4916.09. On credit cards malled to him meant any card, plate, coupon book or other son sent out questionnaires to a cross­ without any solicitation, he was Indebted for credit device with which to obtain money, section of the courts handling large numbers $1,079.43. No. 41893, a labOrer who grossed property, labor or services on credit. These of these cases. The results of his survey $3,600 in 1967, owed $1,500 to a creditor who regulations, which shall establish minimum show unsolicited credit cards are one of the had sent him an unsolicited card. The standards for all card Issuers to follow In causes of the high rate Of consumer bank­ bankrupt admitted purchasing $200 worth of evaluating the credit worthiness of prospec­ ruptcies. merchandise with the card, but contended tive cardholders, serve primarily to protect Mr. President, the portion of consumer he had lost the card and that parties un­ consumers against overextending themselves bankruptcy cases has been growing for 10 known to him had run up $1,300 in purchases with credit obtained through the use of un­ years. In 1958 these non-business cases on it. The bankrupt said he had notlfied solicited credit cards. amounted to 87.6 percent of the 91,668 cases the company that sent him the card, but filed. In 1968 these non-business cases was told they could do nothing about it and It also sets a limit of $50 on a cardholder's amounted to 91.6 percent of 197,811 cases llablllty for the unauthorized use of his that he was responsible for the entire $1,500. filed. Normally the data on personal bank­ Mr. Keelerme.n added this indictment: card, and then only if certain basic condi­ ruptcy reported to Mr. Jackson's division do "These instances stated above are but a tions have been met. I1 they have not been not Include information on the impact of few of the many cases coming before this met, the cardholder has no llablllty whatso­ unsolicited credit cards, so the cards were an ever. These conditions spell out a reasonable Referee in which the debtors who are already unknown factor. The replies to his survey financially overburdened receive this un­ and knowledgeable relationship between the changed that. Here is what a referee in solicited credit card. Subsequent purchases consumer who Is using credit and the card Denver wrote to Mr. Jackson: by them with the use of this card only help issuer, who ls extending credit. "Without study In depth, which would to shove these overburdened debtors into It stipulates that an accepted credit card necessarily include interviews with the the pits of personal financial disaster. Is one which the cardholder has requested bankrupts involved In the samples, it ls not "Apparently, these unsolicited credit cards in writing or signed or used. A renewal possible to express more than an opinion. are sent promiscuously to individuals with­ credit card ls deemed accepted it it Is issued My opinion ls quite definite: The prolifera­ out any regard as to the past or present cred!i within a year after a prior card has been tion of credit cards Induces spending by standing." paid tor or used. A new credit card, issued many persons, and spending beyond any rea­ In Seattle, Washington, an especially re­ in substitution tor an accepted card due to sonable expectation of being able to make vealing survey was me.de of credit card debts a change in the corporate structure or own­ payment. Merchandising and sales practices listed on unsecured bankruptcy schedules ership of a card issuer, ls also deemed an have a strong tendency in such cases to en­ for the months of September, October and accepted credit card. courage reckless spending. The fact credit­ November, 1968. It showed there were 503 In net effect, these provisions confer on card concerns continue to issue the cards cases and that credit cards were Involved consumers the protections they now enjoy without solicitation or with little or no credit to the extent of about $500 per case. Referee In the use of checks. Those who would ex­ checking indicates to me that the experience Sidney C. Vollnn noted, "My impression ls plain away the phenomenon of credit cards ot the concerns has demonstrated the losses that the average unsecured Indebtedness ls as merely the substitution of one credit In­ are more than offset by the profits on the somewhere In the neighborhood of $3-4,000, strument for another, cannot quibble with Increased sales. The economic and social de­ so this would be a substantial percentage." this intent. And to whatever extent credit sirability of such practices Is questionable The total owed on credit cards for the 50S cards generate more spending and greater In long-range view." cases W11s $247,895, broken down this way: indebtedness, these provisions see to it that From Los Angeles, Referee James E. Bank credit cards, $71,103; Oil and gas cards, consumers know what ls going on, although Moriarty, who has presided over more than $70,682; Reta!l store cards, $70,168; Travel they remain as tree as ever to exercise bad 10,000 bankruptcy cases, wrote: and entertainment cards, $35,942. Judgment. If we are In fact moving toward a "Credit cards do get In the hands of certain Mr. President, the findings of Mr. Jackson so-called checkless society, these provisions people who obviously cannot control their and the Bankruptcy Division make eloquent are especially important. The credit card buying Impulses or pay for that which they plea for the responsible distribution of credit could be a trump card played by lenders in buy. It is an easy way to acquire property cards. Too often the card Issuer stakes a anticipation of the day when our customary without facing up to the fact that some day community-wide poker game simply by check protections become extinct. payments must be made. I have no doubt handing out these fancy embossed plastic DISCREDITED CREDIT CARDS but what the avallablllty of all types of credit chips to everyone, whether he can afford to cards have (sic) lead to many persons com­ Mr. President, the Federal Reserve System play or not. One sure way t o cut the con­ ing to the Bankruptcy Court." sumer mortallty rate is to require that the last summer produced a comprehensive and Referee Dale E. lhlenfeldt, speaking for well documented study of bank credit cards issuer first evaluate the credit worthiness the three referees In the Eastern District of of anyone he wants to deal into the game. which concluded that consumer protection Wisconsin, wrote that whenever they have legislation In this area Is unnecessary. While asked a bankrupt about credit cards: OUT-OF-POCKET LOSSES: WHOSE POCKET? it carefully examined the impact ot credit "Without exception, each testified that the Mr. President, who pays when a credit card cards on banks, it gleaned very little data card came to him unsollcited in the mail. ls lost or stolen? Who covers the losses re­ about their impact on consumers. No house­ Most, If not all, of them were already seri­ sulting from fraudulent use of credit cards? hold survey was made to determine how ously overextended in consumer credit, and Under most credit-card plans the consumer many consumers object to receiving un­ receiving this card In the mall was like a Is held liable for any fraudulent or unauthor­ ordered credit cards In the mall. Based on gift from Santa Claus. They proceeded, with­ ized use of the card until the issuer receives examination of some specific cases, the study out hesitation, to use the card. The amount written notification of its loss or theft. M1sS asserted that fewer than one percent of In­ of debts incurred with the use of the credit Betty Furness, Special Assistant to the Presi­ dividuals receiving unsolicited cards returned card ranges from two or three hundred dol­ dent for Consumer Affairs, summed up one them or otherwise objected to this method of lars up to as much as twelve to fifteen hun­ aspect this way when she appeared before the distribution. Clearly, this one percent Is Just dred dollars in each case." Financial Institutions Subcommittee: the visible tip of consumer resentment. No Mr. Ihlenfeldt cited some cases. Here are "If a card ls stolen in transit before it one should conclude from this fragmentary three from last August: Mr. X, with take­ reaches the addressee, the would-be card sta.tlstlc that passive consumers--the 99 per­ home pay of $85 a week at a tannery, owner may find himself getting bills for cent who do not speak up-are happy about showed debts of $2,083.68 to unsecured something he never saw, from someone he the practice. I have received all kinds of creditors, Including $674 on his bank credit never knew, because of a credit card he never credit cards, from oll companies and other card. He had received the card unsolicited outfits, and I never use them. I have never in the mall two years before and used it to h9;~ven though he Is eventually absolved returned a credit card, either. I destroy them. buy clothing and make other general pur­ of liabll!ty for these bllls, he may be en­ I cut them up so they can't be used. The chases. Mr. Y took home $100 a week from snared !n expensive and time-consuming lit­ cards seem well-nigh Indestructible, so I take an industrial firm. Among $798.90 owed to igation during which time his credit rating the scissors and cut them into 20 pieces or unsecured creditors, $286 was due on his ls all but destroyed." so. It ls a source of annoyance to me, and I bank credit card. He had received the card Mr. President, recent statutes in Illinois, am sure It nettles many other people. unsolicited in the mall about a year earl!er. Massachusetts, New York and Wisconsin Against this backdrop, it was edifying in­ Mr. z, a dockworker for a trucking firm specifically exempt from Uablllty the cus­ deed to hear Royal E. Jackson testify before with take-home pay of $120 a week, owed tomer who has not accepted or begun to use the Financial Institutions Subcommittee. $1,059.94 to unsecured creditors, Including an unsollcited credit card. That Is a start, Mr. Jackson ls the very able Chief of the $421.85 on his bank credit card. He, too, although the question arises: What about a Bankruptcy Division of the Admlnlstratlve had received an unsolicited credit card in credit card issued in New York and used in Office of the U.S. Courts. The division makes the mall two years earlier, and used it to Massachusetts? Or what about the unsolic­ more or less constant surveys and analyses buy clothing and gas and pay for auto re­ ited BankAmerlcard that Na­ of the work of the bankruptcy courts, which pairs. tional Bank malled to my office here? What January 28, 1969 CONGRESSIONAL RECORD-SENATE 1949 if it had been intercepted? I was not ex­ reply by Standard OU Company of Indiana grammers oversell participating merchants pecting such a card. Indeed, I have never to a notice that a card has been lost: and the consumers who are to patronize done business With that bank. I guess I "A very small percentage of such cards them. The inevitable result is Widespread should be flattered that it gave me a gener­ reported lost, or stolen, are used illegally. disappointment. Perhaps this explains why ous $1,000 Une ot credit, but I am not. I With this in mind, the replacement card credit-card plans can involve relatively heavy do not like to be wooed With my own which we enclose bears the same number losses compared with other forms or con­ pocketbook. as the one you have been using." sumer lending, even though nothing in the This bill provides that a cardholder is Mr. Bergsten's reaction states the case very record suggests that heavy losses are an in­ liable for unauthorized use of his card if nicely: herent feature of these plans. I submit that and only if it is an accepted credit card and "Apparently Standard OU finds It less ex­ extending some truth-in-lending principles certain ot her conditions obtain. If they do, pensive to accept the 1066 from unauthorized to credit-card plans will administer them a his liab111ty is limited to $60. If they do not, use than it does to take such a simple pre­ natural antidot.e. Mr. President, a well docu­ all liab111ty remains where it properly be­ caution as issuing a new number. Notifica­ mented article on consumer oversell appeared longs--With the issuer. This means the issuer tion to such an issuer is a meaningless act. in the Sunday News of last Nov. 24. I ask must follow sound business practice or suffer To use it as the event shifting liabllity merely unanimous consent that the article, entitled the consequences. The issuer cannot trans­ results in an arbitrary allocation of the 1066. "Who Needs Money?" be printed in the fer out-of-pocket losses to the cardholder. On the other hand notification is a &lgni.fi­ RECORD. The issuer may no longer penalize the con­ cant event to those issuers who pass It on to SUPPORT FOR TlllS MEASURE sumer for his own carelessness or unfairness their merchants promptly, and, if lle.bllity Mr. President, the language of this bill is in designing credit cards and procedures tor ts to be shifted, doing so at that time is much like that of a Massachusetts credit card using them. Let me describe these condi­ reasonable." law that became effective Jan. 1. I want to tions that must be met before llablllty can Embodying this principle, the blll pro­ salute the people of Massachusetts for pio­ shift to the cardholder. vides that an issuer must take action reason­ neering in this and in truth-in-lending and First, the issuer must give adequate notice ably designed to advise merchants or others-­ in other consumer matters, and for influenc­ to the cardholder of the potential liablllty in­ say, by distributing "hot card lists"-with ing Federal legislation. William F. Willier, volved. This means setting it forth clearly whom the credit card is apt to be used that Professor of Law at Boston College, appeared and conspicuously either on the card itself there is a chance of its unauthorized use. before the subcommittee as a representative or on each periodic statement of the card­ FURTHER COMMENT of the Massachusetts Consumers• Council and holder's account. Doing so takes liability gave his view that Federal legislation would clauses out of the fine print category, where Mr. President, It sometimes is contended be desirable, since many credit-card syst.ema that low loss ratios on bank credit-card plans they were often kept secret from the very operate nationwide. person they affected most. The typical credit show that the unsolicited card problem has Here is what Andrew F. Brimmer, mem­ card today can be read only by persons under been overstated. The Task Group of the Fed­ ber of the Board or Governors of the Federal eral Reserve System found In this respect 40 blessed with exceptional eyesight. Every­ Reserve System, declared in his statement one else needs strong glasses or a magnifying that, for the nation as a whole, charge-offs to the subcommittee: glass. At the subcommittee hearings I asked from Jan. 1, 1967, through June 30, 1967, "Even though the liablllty for misuse of a witness to read the liabllity clause on a amounted to 1.97 percent of amounts out­ lost or stolen credit cards has been small, typical credit card. Saying that hie glasses standing. I see no overstatement in that there ts an important matter of principle as made it just barely possible to see the crucial figure. If a 1.97 write-off ratio ls acceptable to the extent to which the consumer should clause, he read: to banks, they are under no inducement to bear this burden. I believe that the entire "By acceptance of this card customer improve things. The impact on the consumer burden of loss arising from the misuse of named hereon agrees to the terms of issue is very great at that level, however. The 1.97 lost or stolen credit cards before they are and assumes responsibility for purchases percent represented $12.4 million-enough to received or accepted by the customer should made through the use prior to its surrender deposit financial distress in thousands of con­ be borne by the issuer. After acceptance and to Humble or prior to the receipt by Humble sumer homes. The survey in Seattle revealed use of the card by the customer, I believe of written notice of its loss or theft." that credit cards were implicated to the ex­ that the llablllty imposed on the customer Mr. President, that's an Open Sesame tent of about $600 in each of 503 consumer should be small, Inasmuch as the issuers are clause, deserving of full disclosure through bankruptcies, and gives a way of gauging better able to bear the losses and to control clear and conspicuous posting. just how far those losses of $12.4 m1ll!on them. Some small liabillty on the part of the Second, the card issuer must provide a could go. customer is probably desirable to encourage means of identifying the card user as the The highest loss ratio was enough 1lo star­ responsible handling of cards and prompt person authorized to use it such as a signa­ tle anyone. That was 5.73 percent, in the reporting when cards are lost or stolen. ture panel. So far card issuers and manu­ Chicago Federal Reserve district. In classify­ Finally, the customer should be clearly in­ facturers have done little to personalize ing bank credit-card plans by year of origin, formed of his llablllty. credit cards so that they can be used only the Task Group found that banks with the "In order to achieve this result, some leg­ by the rightful owner. There are some ob­ most recent plans had the heaviest losses. islation may be desirable since not all issuers vious reasons for this failure. One, a per­ That fact indicates bankers learn by experi­ wlll follow such a policy unless it is required sonalized card could only be issued upon ence and can lower their loss ratios as time by law. The legislation might be at either application and would result in somewhat goes on, but it cannot comfort us that con­ the State or Federal level. And clearly, to be higher manufacturing cost. Two, there is sumers wlll escape the birth-pangs of ruture effective, such legislation would have to no completely foolproof method of identi­ plans. Nor does it guarantee that other is­ apply to travel and entertainment cards, fication. Three, some card issuers like to suers of credit cards will increase their care­ gasoline company cards, airline cards, and facilltate their use by other members of fulness and sophistication as bankers do. other credit cards as well as to bank credit the family or additional authorized users. Bankers claim that issuance of unsolicited cards. Credit cards issued by banks account There is a perfect answer to the user­ credit cards is necessary to build volume for less than 10 percent of the total amount identifl.cation question, however. As Eric E. overnight and put the new plan on a profit­ of credit outstanding under all types of Bergsten, Professor of Law at the Univer­ able basis as soon as possible. Perhaps so, credit cards." sity of Iowa, stated it before the subcom­ but I should like to remind them of the ob­ Mr. President, this legislation is quite mittee: vious: The public does not owe any card compatible with the statement of principles "If card issuers wish to issue cards which Issuer an instantly profitable plan. I want drawn up last fall by the Charge and Guar­ by their form are freely transferable, it ill them to remember that in sending an unso­ antee Card Committee of the American Bank­ behooves them to argue that they have no licited card they are inflicting themselves on ers Association. Here are several points from method of verifying the authority of the someone; that in following up with zero­ that statement: user." balance blllings they are adding insult to "(4) These services are designed for, and Third, Mr. President, the unauthorized injury. When a consumer rebels against this are to be offered only to, those individuals use must occur before the cardholder has hammering imposition, he learns anew the who are able to handle their financial obli­ notified the issuer that such misuse may frustrating truth that you can't talk back to gations properly. occur due to lost or theft or other problem, a computer. Credit-card issuers should un­ "(7) Banks should institute credit screen­ and the issuer must take steps after noti­ derstand that the start-up costs and burden ing procedures on all potential customers fication to minimize the possibility of un­ of proof are on them, not on the consumer. prior to malling cards to such customers. authorized use. In other words, a liablllty­ This blll wlll not prohibit the issuance of " (8) Banks wlll make full and voluntary untll-notice requirement cannot be imposed unsolicited credit cards or prevent others disclosure in understandable and readable on the cardholder unless It means some­ from entering the credit card business. It wlll terms of all details of these services, with thing. Card issuers explain the requirement insist, though, that greater standards of care special attention to advising the customer of serves to encourage responsible handling of be exercised In the issuance of such cards. his established credit limit and his contrac­ credit cards. Very well, but only If notifica­ Let me add this personal footnote. This is tual responslbllltles. tion Is a meaningful act, and not just an a society of incessant oversell of jobs, goods "(9) Card issuing banks should develop empty injunction. Mr. Bergsten provided and cla.tms. Exaggeration ls the standard practical means to reasonably protect cus­ considerable insight to this point when he t.echnlque. It is hardly astonishing in this tomers against liabllity arising from lost or quoted to the subcommittee from the form overblown environment that credit-card pro- stolen cards." 1950 CONGRESSIONAL RECORD- SENATE January 28, 1969 Mr. President, I Join with these and other me to hear of bank advertising gimmicks­ for the cost of the merchandise but has also persons and organizations In stressing the the parades, balloons, clowns and skywrit­ made a profit on the transaction. These are need tor further protection of consumer In­ ing-aimed at promoting the use of credit the merchants who prey on the uneducated terests. I believe that Introduction today of cards. and poor consumers." this amendment to the Truth-In-Lending "In the frenzy of competition a.mong Then, Moriarty noted, there Is the category Act moves us toward that goal. banks, traditional prudence seems to have of debtors who might have a little larceny been tossed aside ... in their hearts. Like the classic case----ap­ [From the New York Sunday News, Nov. 24, " Unfortunately, there are many who, propriate to this season--of a Navy seaman 1968] thanks to the bank's conservative image, second class who was temporarily stationed WHO NEEDS MONEY? rely on its offer of credit as some sort of at Long Beach, Calif., In December 1962 and {By J ack Metcalfe) evaluation that they are creditworthy. 'Why who got a credit card from a leading de­ else,' one distraught man asked, 'would they partment store. Suddenly, many American b ankers have be willing to lend me money?' " He ran up $1,700 In charges during 15 become shockingly open-handed. They have Those who are already seriously In debt, days of December, and shortly after New begun giving credit to virtually everyone Miss Furness continued, are likely to be­ Year's filed for bankruptcy. The sailor then and anyone In a wild splurge of generosity lieve that all their worries would be over testified that he had "purchased Christmas that is not at all characteristic of these skin­ if they could just get a little more money. presents tor all his relatives and friends back flinty gentlemen. "The arrival of a credit card provides the East." This, in substance, Is the opinion of a sub­ chance--the chance, that Is, to bury them­ "Certainly, this type of person cannot be stantial segment of experts In t he consumer selves deeper in debt." considered honest," wrote Moriarty, adding field. They voiced their misgivings about Another witness, Royal E. Jackson, chief judicially: "But at the same time, the de­ wlciespread, often unsolicited distribution of administrator of the U.S. courts' bankruptcy partment store cannot be completely ab­ bank credit cards in testimony last month division, likened the use of credit cards by solved of blame for letting a man whose before Sen. William Proxmire's Senate sub­ "those who are up to their ears In debt" to salary is very limited run up such a large committee on financial institutions. "trying to drink yourself sober." number of charges." Other witnesses representing banks and "It can't be done," J ackson added some­ Then there are, says the referee, those more b ankers were Just as vigorous In defense of what anticlimactically. sophisticated buyers who "adopt a plan the new credit policy, denying that it tempted which may be called credit card kiting spendthrifts into bankruptcy, that It was To bolster his contention that the easy availab111ty of all kinds of credit cards Is schemes." widely abused or that it was likely to have One such use of gas and oil cards Is both an adverse effect on the n ation's economy. undoubtedly a reason for the terrlftc rate of personal bankruptcies, Jackson cited reports shady and popular. This Is the purchase on Predictably, Proxmire was not persuaded. credit of Items like tires, then reselling them A liberal and a champion of the new truth­ from various referees In bankruptcy. (Referees are officials appointed by the for cash. From Referee In Bankruptcy Joe In-lending-law, the Wisconsin Democrat an­ Lee of Lexington, Ky., comes this account nounced later that he would back legisla­ judges of U.S. district courts to hear bank­ tion early In the next Congress to keep banks ruptcy cases. While not exactly judges them­ of one such case: from tempting people who can't afford cred­ selves, they rate being called "your honor"­ Charles William Morgan formed a corpora­ it to live beyond their means through un­ and they are experts In the legal jungle of tion, Kentucky Colonel Homes Inc., to sell ordered credit cards. bankruptcy law.) prefabricated houses. It was unsuccessful, Thus, without saying so, the senator allied From Atlanta ca.me the report of the case but during the short period of time It was In himself with the older generation of Amer­ of a. "Mr. X ," described as a janitor making business, credit cards were obtained In the icans, those who grew up believing, like about $55 a week. Mr. X testified at his corporate name from American Oil Co. and humorist Ogden Nash, that bankers are just bankruptcy hearing that he had received a nine other gasoline firms. Morgan also took like everybody else-only richer-and that bank credit card without asking for It, that out credit cards in his own name from three they are always happy to lend you money within a few months he had run up debts oil companies. except when you really need it. totaling more than $3,000 and that when the When he went bankrupt, his company This traditional image Is now Just as out bank confronted him with his Indebtedness, owed $5,377.07 to the 10 oil firms, including of focus as the time-honored virtues of thrift officials told him that in the future he should $1,179.33, the biggest single debt, to Ameri­ and frugality. A wit ness at Proxmire's hear­ not make purchases bigger than $70 each. can. In addition, he owed $3,645.49 to three ings, President Johnson's adviser on consum­ From Montgomery, Ala., came the report companies as an Individual. He testified that er affairs Betty Furness, put it this way: of a compulsive spender, Mrs. Y, who was he had used the credit cards tor meals, lodg­ "Today, debt Is actually sold as extensively paying off previous debts out of her wages ing and living expenses for about a year. as an y commodity. We are constantly urged when she got a credit card from a local de­ Another flagrant misuse of credit cards through advertising to buy on 'easy' terms, partment store through the mall. The credit was reported from Knoxville, Tenn., involv­ to open charge accounts, to travel now and manager later said It was sent In error, and ing a former newspaper reporter who set out pay later. Mrs. Y, Ignoring court warnings not to Incur to see the world. He left town with $180 In "Debt u sed to be frowned upon and dis­ debts while she was In bankruptcy proceed­ cash and a fistful of credit cards and headed couraged. Today It's encouraged." for Australia. ings, went on a buying spree. She escaped When he got there, he evidently discov­ Miss Furness cited "excessive credit ex­ prosecution on a technicality. In his report ered that he couldn't get a job without sit­ tensions" and "consumer extravagance re­ t o Jackson, Referee Leon J . Hopper opined ting out a six-month clearance period. So he sulting from lna.b1llty to manage money t hat while "she should have known better," ca.me home, via Europe, Puerto Rico and the well" as t he two major villains In the soar­ the u nsolicited card was the Immediate cause Virgin Islands. Back In the states, the er­ ing Increase In bankruptcies. of her compounded troubles. rant newsman promptly filed a bankruptcy While non-mortgage consumer debt has The Los Angeles area, according to Ref­ petition. His debts totaled $13,587.55, of risen to a. stupendous $100-bllllon level In eree James E. Moriarty, can be called the which $11,177.96 was charged on credit cards. the post World War n yea.rs, Miss Furness "consumer credit capital of the U.S." and His assets were $8 cash, one share of stock noted, the number of personal bankruptcies as such has more t han Its share of the worth $12 and personal effects valued at has kept pace. In every year between 1962 "suede shoe boys who are determined on $300. and 1967, the total personal bankruptcies separating the buying public from their Most bankrupts don't t hink so big. A ran­ filed In federal courts (where all are han­ assets." Where "easy and extended" con­ dom sampling of Eastern Wisconsin cases dled) showed an Increase, reaching 191,729 sumer credit Is huckstered like any Item showed that t heir t ake-home pay averaged In 1967; the total did dip In fiscal 1968, but of merchandise, Moriarty wrote Jackson, a between $85 and $120 weekly and t heir in­ only to 181,263. variety of credit card problems are bound debtedness ranged from $2,523.30 up t o $3,- Elaborating on her theme, Miss Furness to spring up. 886.47. This survey was limited to bankrupts zeroed In on the newest form of easy credit-­ Moriarty said all kinds of cards-not just who h ad been sent unsolicited credit cards, the unsolicited credit card, which she called those of banks-figured In bankruptcy cases t hoEe who h ad u sed them had not run up variously "laminated llab111ty" and the he hears. "In one proceeding Involving a b ills for exotic travel but to make mundane "modern Aladdin's la.mp." husband and wife . . . they h ad a total of purchases of clothing and household needs "I am greatly troubled with the ethics 36 credit cards which were retained by the and for gas an d auto repairs. of forcing unsolicited and unwanted credit court: 18 from the husband and 18 from tlie No such detalled inform ation is available cards Into the consumer's home, especially wife, each listed as a credit or. ab ou t New York debtors. But court officials when the Issuer may have no Idea whether Practices of Los Angeles credit jewelers say b ankrupts in t his area generally earn be­ the consumer is equipped to administer rat ed special ment ion b y Moriarty, who t ween $80 and $160 a week. If they are slightly that little three-Inch piece of plastic prop­ noted that they h ave In recent years more affluent than debtors elsewhere, they erly." "branched out Into such lines as radios, also tend to owe more, usually about $5,000. Obviously, the three sons of an irate Chi­ televisions, cameras, tape recorders an d ot her This load often includes a big bill--$2,000 cago householder were not. They were aged household items." He added: owed to a depar tment store or for doctors or 9, 11 and 13, said Miss Furness, who re­ "These are t he shops that charge Inflated for an u ndertaker's services. ported that the father had received a total prices for Inferior m erchandise and, upon These court sources are inclined to ques­ of 18 unsought credit cards for himself. receipt of 40-50 % of t he tot al sales price, tion just h ow much impact t he increasing "Frankly," she added, "It rather surprises the merchant has not only been reimbursed use of credit cards ls h avin g on bankruptcies January 28, 1969 CONGRESSIONAL RECORD- SENATE 1951 in this area. Considering the number of New So these credit card operations can be ture or ownership of a card Issuer shall be Yorkers with crushing financial burdens, highly profitable. The Federal Reserve said deemed to be an accepted credit ca.rd. they also wonder why more debtors in this the 197 banks offering such plans charged "(m) The term 'cardholder• means any area don't avail themselves of bankruptcy as their 14 million card-holders monthly inter­ person to whom a credit card is Issued or any a means of wiping their slates clean and est up to 1.6%. the highest allowable rate person who bas agreed with the card Issuer to getting a fresh start. Still 3,611 bankruptcies 1n most states. If the charges aren't paid off pay obligations arising from the issuance of were filed in the and Long when due, this works out to a whopping 18% a credit card to another person. Island areas la.st year. a year. "(n) The term 'card issuer' means any Not that this ls recommended a.s a quick In addition, the banks collect from partici­ person who issues a credit card. and ea.sy escape route for that miserable pating merchants, who numbered 390,805 "(o) The term 'unauthorized use', as used soul, the honest debtor. It isn't even cheap; when the Federal Reserve made Its count. In section 132, means a use of a credit card it costs $60 to file a bankruptcy petition. This fee, discounted from sales slips, varies by a person other than the cardholder who There are personal bankruptcies and widely. It can be as low as half of 1 % or as does not have actual, Implied or apparent there are those involving businesses. In addi­ high as 8 %, with the average about 3 .5 % - authority for such use and from which the tion, bankruptcies may be voluntary-that Is, Bank credit cards are, o! course, only a cardholder receives no benefit." when they are sought by the debtors. Or they part, although the fastest growing part, of SEC. 2. Section 105 of the Truth In Lending may be Involuntary, when a group o! credi­ the "plastic credit" operation. The other Act (82 Stat. 146) ls amended by Inserting tors asks the court to declare that a debtor principal types are the so-called travel and "(a)" before "The Board" and by adding at is bankrupt so that his assets can be pre­ entertainment cards {Diners Club, American the end thereof a new subsection as follows: served and split up. Almost all of these In­ Express and the like, which charge a mem­ "(b) The Board shall prescribe regulations volve businesses. bership fee and generally expect payment governing the conditions under which card A bankrupt is not relieved of any taxes within 30 days), oil company cards and de­ issuers may issue credit cards which the he owes, either federal, state, county, dis­ partment store cards, both for revolving cardholder has not requested In writing. Such trict or municipality. Nor Is he freed o! credit and straight charge accounts. regulations shall prescribe minimum stand­ liability !or alimony, child support, dam­ As of last Dec. 30, the nation's plastic ards to be followed by all card Issuers in ages !or malicious or wilful Injury to some­ credit outstanding was $12 billion dollars. An checking the credit worthiness of prospective one else or his property or for a variety of estimated 200 mllllon credit cards have been cardholders in order (1) to protect con­ other obligations, Including embezzlements. issued. sumers against overextending themselves Bankruptcy court staffers say the only All share some problems. These cards can with credit obtained through the use o! un­ group of tough creditors who sometimes be lost or stolen and used fraudulently-a solicited credit cards, and (2) when the card make a vigorous effort to get bankrupts to major headache for the card holder, a source issuer ls a bank Insured by the Federal pay their bills are doctors. Moot creditors of loss for the issuer and a rich lode for the Deposit Insurance Corporation, to safeguard in the New York area heave a philosophical underworld. the safety and soundness of the bank." sigh and write off their bad debts without But only the banks and the oil companies SEC. 3. The Truth in Lending Act (82 trying to recover so much as one cent on the have had many dl1ll.cultles with credit cards Stat. 146) 1s amended by adding after sec­ dollar. which they have malled out without being tion 131 the following section: That's partly because a bankrupt's property asked, since only these two groups have gone "§ 132. Llablllty o! Holder of Credit Card may be exempt from seizure. According to in on a large scale for this way o! drumming "A cardholder shall be liable for the un­ state laws, such belongings as the bankrupt's up buslnes. authorized use of a credit card only if the home, clothing, and furniture and the tools Despite drawbacks to the unsolicited cards, card 1s an accepted credit card, the llabtllty of his trade are off limits. spokesmen for the banking industry defend ls not in excess of fifty dollars, the card Is­ Even 1f a bankrupt does have some prop­ this practice. Banks have found that It suer gives adequate notice to the cardholder erty that can be taken over by creditors, they doesn't pay to ask prospective customers of the potential liability, the card Issuer frequently don't bother. It's more trouble to whether they would like to be sent a card; has provided a method whereby the user liquidate the assets than they're worth, es­ only seven-tenths o! 1 % say they do. But of the credit card can be Identified as the pecially 1f this property consists solely o! the when cards are malled out unasked to a "se­ person authorized to use it, the unauthor­ family's jalopy. lect" list, only 1 % of the recipients feel ized use occurs before the cardholder has So, typically in New York, the only penalty strongly enough to send them back. notified the card issuer that an unauthor­ for an honest debtor is the reputation of Presumably, a number of others do seethe ized use of the credit card has occurred or being a welsher. He may have trouble getting may occur as the result of loss, theft, or more credit. He may not. In silence, but as many as 19 % of the recipi­ ents do use their cards within three months. otherwise, and the card issuer has taken There ls no dispute that the number o! such action, after being so notified by the bankruptcies has swelled enormously In the So credit cards obviously are destined to be a permanent and growing part of the cardholder, as ls reasonably designed to ad­ last two decades. But there 1s considerable vise those merchants or others with whom argument over how serious this ls, whether or American way of life, even though they still aren't accepted at hot dog stands. the credit card ls likely to be used of the not It indicates t hat the nation's economy ts posslblllty that an unauthorized use there­ unhealthy. The bill CS. 721) is as follows : of may occur. For the purposes of this sec­ High wages and employment have spurred 721 tion, a cardholder notifies a card issuer by credit buying to new records, a total of more s. taking such steps as may be reasonably re­ than $80 billion In outstanding Installment Be it enacted by the Senate and House quired In the ordinary course of business debt. Some $2 bllllon ls expected to be of ReP7esentatives of the United States of to provide the card issuer with the perti­ charged this year on the bank credit card America in Congress assembled, That section nent information whether or not any par­ plans alone. What would this mean 1f 103 of the Truth in Lending Act (82 Stat. ticular officer, employee, or agent of the card America's uninterrupted spell of prosperity, 146) Is amended by redeslgnatlng subsections issuer does in fact receive such Informa­ now more than seven years old, should slack (j), (k), and (1) as subsections (p), (q), and tion." off? (r), respectively, and by adding after sub­ SEC. 4. The amendments to the Truth 1n In his subcommittee hearings, Sen. Prox­ section (I) the following: Lending Act made by this Act shall become mire questioned whether holders o! credit "(j) The term 'adequate notice', as used effective upon the expiration of six months cards might not be tempted to overextend In section 132, means a printed notice on after the enactment of this Act. themselves If they were squeezed financially any credit ca.rd issued to a cardholder, or on during such a recession. each periodic statement setting forth the NEED FOR CONSUMER' S PROTECTION AGAINST THE One witness, American Bankers Association account of a cardholder, which ls set forth DANGERS OF UNSOLICrrED CREDrr CARDS spokesman Thomas L. Balley, saw no problem. clearly and conspicuously, in accordance with Mr. DODD. Mr. President, I am pleased "For many years," Batley testified, "the regulations prescribed by the Board, so that to support the bill of the senior Senator American consumer has provided abundant a person against whom it ls to operate could from Wisconsin, and I congratulate proof o! his ability to handle his own finan­ reasonably be expected to have noticed it cial affairs. Certainly, the receipt of a credit and understood Its meaning. him upon introducing this important card has not Induced him to engage In a wild "(k) The term 'credit card' means any card, measure. buying spree." plate, coupon book or other credit device It seems to me that one of the most Restrictions of the kind Proxmire favored existing for the purpose of obtaining money, striking financial phenomena in recent are neither "necessary nor desirable," Balley property, labor or services on credit. years has been the proliferation of "easy said. The Federal Reserve System had studied "(!) The term 'accepted credit card' means credit" plans for the American consumer. the field, he said, and found "no evidence of any credit card which the cardholder has any mounting Incidence of consumer in­ requested in writing or has signed or has Oil companies, department stores, jew­ debtedness since the recent burst of credit used, or authorized another to use, for the elers, and commercial banks, issuing a card . . . plans." purpose of obtaining money, property, labor barrage of plastic cards, allow the Jones' Nor, said the witness, have banks suffered or services on credit. A renewal credit card and their neighbors to eat, drive, and fly serious losses from their credit card opera­ shall be deemed to be accepted If It ls issued now, paying later. tions. The Federal Reserve's study showed within one year after a prior card has been In many ways the credit card repre­ that banks had to write off as bad debts only paid for or used. A new credit ca.rd issued 1.97% o! credit card business during the first in substitution for an accepted credit card as sents vast convenience to the consumer. six months o! 1967. a result of a change In the corporate struc- One card and no cash enable a customer 1952 CONGRESSIONAL RECORD- SENATE January 28, 1969 to purchase a wide variety of goods and proposals would effectively serve to pro­ Mr. President, the existing Federal services, no matter where he may be. tect both the consumer and his creditor Corrupt Practices Act was passed in On the surface, such arrangements are by establishing guidelines of minimum 1925-44 years ago. No experienced Sena­ quite simple. But a second glance will credit-worthiness and potential liability tor has to be told of the flaws, deficien­ show that the credit card usually repre• limitations. cies, and general obsolescence of that act. sents a network of complicated terms, Adoption of this legislation, Mr. Presi­ It simply was not adopted for the pur­ many operating to the disadvantage of dent, will surely be a major step in re­ pose of covering political campaigns for the unwary consumer. storing the original intent of consumer all eternity. Frequently, the exact terms of the credit, namely, healthy stimulation of Remedial action is required from time credit plan are not spelled out for the the economy through increased conven­ to time to keep any legislation up to cardholder until he finds himself in deep ience and protection for the consumer. date. However, in this area of campaign trouble. More often, the explanation is contributions and expenditures, there given, but only in small print or in ac­ has been a total failure to bring the Cor­ companying brochures which quickly S. 722-INTRODUCTION OF BILL TO rupt Practices Act into conformity with find their way to the trltsh can. PROVIDE AN INCOME TAX CREDIT modem campaign practices. Some cards do not have adequate OR DEDUCTION FOR POLITICAL The tremendous increases in costs of means of identifying the holder. Others CONTRIBUTIONS running for office, including the use of give no notification of the holder's po­ Mr. CANNON. Mr. President, at this television and jet transportation, have tential liability in cases of loss or theft. time I introduce, for appropriate refer­ left the Corrupt Practices Act in the But even more alarming, Mr. Presi­ ence, a bill to amend the Internal Reve­ stone age of election finance control. In dent, is the effect which such loose credit nue Code of 1954 to provide an income the political parlance of today: it is time arrangements have on family budgets tax credit or deduction for certain con­ for a change. and individual spending. tributions to candidates for elective Fed­ Mr. President, failure to keep pace with In these days of high-pressured ad­ eral office. changing trends is not due to the absence vertising, the American consumer is no This bill is identical in content to title of legislative proposals. It is due, to be longer primarily concerned with neces­ m of the bill which I previously intro­ frank, to the apparent disinterest or re­ sity and comfort. Status through con­ duced to revise the Federal election laws. luctance of the Congress to act in this sumption is becoming an accepted max­ I am introducing a separate bill for important field. im of American society. Unfortunately, the purpose of avoiding at a later date S. 636, in 1955, was reported after the lower income groups are most sus­ a point of order, either during the course hearings and study but died at the end ceptible to this fallacy. of the proceedings before the Subcom­ of the 84th Congress. The dangers of such a trend are illus­ mittee on Privileges and Elections, or on S. 2436 was passed by the Senate in trated by the alarming rise of consumer the floor of the Senate, on the ground 1960 and S. 2426 was approved by the bankruptcies paralleling the increased that tax measures should be referred to Senate in 1961. Neither bill received fav­ extension of consumer credit. The basic and considered by the Committee on Fi­ orable action by the House of Represent­ premise of a credit system, namely, that nance only. This separate blll on tax in­ atives. debtors will repay their debts, seems to centive should be referred to the Com­ S. 1880 which passed the Senate in be fading away. mittee on Finance where it can be given 1967 and H.R. 11233, a similar bill, were The obvious conclusion is that our the careful consideration of the mem­ considered by the House in 1968 and H.R. permissive credit institutions let people bers of that committee. 11233 was reported in 1968, but too late live so far beyond their means that many The VICE PRESIDENT. The bill will to be given necessary consideration by are finally driven to complete financial be received and appropriately referred. the House membership. destruction. A sample shows that credit The bill CS. 722) to amend the Inter­ During the 1968 campaign year, the ex­ cards were cited as a contributing factor nal Revenue Code of 1954 to provide an penditures made by candidates of the in more than half of the consumer bank­ income tax credit or deduction for cer­ Democratic and Republican Parties and ruptcies filed last year. tain contributions to candidates for elec­ the American Independent Party were In light of these facts, the practice of tive Federal office, introduced by Mr. very extravagant, both in the primaries mass mailing unsolicited cards to in­ CANNON, was received, read twice by its and the general election. dividuals whose credit-worthiness is not title, and referred to the Committee on Expenditures far in excess of the limits established seems grossly negligent. Finance. set by the Corrupt Practices Act, even for The financial understanding and re­ national committees, coupled with a to­ sponsibility of countless individuals is S. 734-INTRODUCTION OF BILL TO tally inadequate requirement of disclo­ never considered until the damage has REVISE THE FEDERAL ELECTION sure of the sources of contributions and LAWS channels of expenditures, point graphi­ been done. cally to the need for remedial legislation. Furthermore, a party may be held re­ Mr. CANNON. Mr. President, I intro­ Mr. President, the Corrupt Practices sponsible for the misuse of a card which duce, for appropriate reference, a bill to Act of 1925 attempted to place limita­ he neither requested nor received. While revise the Federal election laws, and for tions upon expenditures by candidates he will eventually be able to clear him­ other purposes. for the Senate and House of Representa­ self of liability in most cases, he first may The VICE PRESIDENT. The bill will tives. Under no conditions can a candi­ be forced to undergo lengthy and expen­ be received and appropriately referred. date for the House spend more than sive proceedings, causing the near ruin The bill CS. 734) to revise the Federal $5,000 or a candidate for the Senate of his credit rating. election laws, and for other purposes, spend more than $25,000 during a calen­ In order to avoid such misfortune, introduced by Mr. CANNON, was received, dar year. after receiving an unwanted card, the read twice by its title, and referred to Interstate political committees were consumer must take the trouble to cut the Committee on Finance. limited to expenditures of $3 million. But the plastic cards into slivers so that they Mr. CANNON. Mr. President, President no Federal control was exerted over State cannot be found and used fraudulently. Johnson submitted at the beginning of or local political committees supporting To allow this state of affairs to persist, the 90th Congress the Election Reform candidates and primary elections were Mr. President. is unwise and unnecessary. Act of 1967. I introduced that legislation not considered at all. A few simple controls would bring about which was numb~red S. 1880 and re­ Multiple national committees now major improvements in the American ferred to the Subcommittee on Privileges spend up to $3 million each and con­ consumer credit system. and Elections. tributors give up to $5,000 each to an It is with this goal in mind that I am Following hearings and study the bill unlimited number of committees. Thus, pleased to cosponso.r the bill proposed was reported to the Senate where, after the best that can be said for the limita­ by my distinguished colleague the senior full debate, it was passed on Septem­ tions set by the Corrupt Practices Act Senator from Wisconsin. ber 13, 1967, by a rollcall vote of 87 to O is that the sky is the limit. According to The solutions offered in this bill are and referred to the House of Representa­ a report in the Washington Po.st on Jan­ not extreme, nor should they be con­ tives. Regrettably, no final action was uary 3, 1969, national fundraising com­ troversial. taken by the House prior to adjourn­ mittees supporting Richard Nixon dis­ The enactment of Senator PROXMmE's ment of the 90th Congress. closed a record $21 milllon raised to fl- January 28, 1969 CONGRESSIONAL RECORD- SENATE 1953 nance his campaign, and reported also of the Senate, and the clerks of certain Processing of the flood of Incoming reports delayed their public release yesterday. The from information filed in the House of U.S. district courts. Nixon-Agnew filings, which arrived first, Representatives that many large con­ Fifth. My bill would require all can­ were made available late yesterday afternoon. tributions exceeding $5,000 were given to didates for Federal office, and all politi­ The more numerous Democratic reports Republican fundraising committees by cal committees receiving or spending should be released today. individuals who recently have been an­ $1,000 or more for Federal candidates, A quick review of the lists of late Nlxon­ nounced as Nixon appointees in his new to file detailed financial reports with the Agn.ew donors disclosed contributions from: administration. Clerk of the House of Representatives, David L. rackard, who was recently an­ the Secretary of the Senate, and the nounced as Nixon's choice for Under Secre­ Mr. President, I ask unanimous con­ tary of Defense. At least two contributions sent that this newspaper article be clerks of Federal district courts where from Packard totaling $6,000 were listed. printed at this point in the RECORD. the candidates reside or where the prin­ Roy L. Ash, president of Litton Industries, Mr. President, freewheeling campaign cipal office of the political committee who was selected by Nixon to study organi­ practices, such as those outlined by the is located, on the 10th day of March, zation of the Executive Branch of the Gov­ Washington Post, have instilled in the June, and September of each year, and ernment. Ash was reported giving $5,000. minds of thousands-perhaps millions-­ also by the 31st day of January. Addi­ His colleague Charles B. Thorton, Litton of Americans that elective offices are tional reports are required to be filed board chairman, who gave $10,000 earlier, is in each case on the 15th and 5th days listed giving another $7,500. bought and sold and elected officials Robert 0. Anderson, chairman of the board must pay homage to the big contributors before the date of a primary or general of Atlantic-Richfield Co., which recently whose money helped them to win the election. made significant oil strikes In Alaska and election. If the people are ever going to The purpose for the timing of these last week voted to merge with Sinclair OU have any faith in the integrity of the reports is to furnish specific information Corp. A total of at least $21,000 was listed in elective process, they must be told where to the public concerning the amounts of $3,000 contributions to seven reporting com­ money comes from and how it is spent. money received, the names and addresses mittees from Anderson. In 1956 the nationwide, exhaustive of the contributors, and the manner in Charles E. Smith, whose real estate com­ survey of campaign contributions and which such money is expended. In this panies rent a substantial amount of Wash­ manner, American citizens will be able ington area office space to the Federal Gov­ expenditures conducted by the Subcom­ ernment. Smith, his son and his son-in-law­ mittee on Privileges and Elections under to draw their own conclusions as to the all of whom work for his real estat.e busi­ the chairmanship of Senator ALBERT kind of financial support a candidate or ness-jointly are listed as giving $5,000 to the GORE-a survey which, incidentally, political party is receiving in time to ex­ Nixon-Agnew Victory '68 committee. Last never has been repeated-disclosed that press their approval or disapproval on October, Smith hosted a fund-raising cock­ 12 of the most prominent families in the primary election day or general election tail party for Vice President Humphrey. With day. others In his firm, he was listed as contrib­ United States had contributed collec­ uting $15,000 to various Humphrey-Muskie tively during the calendar year 1956, Unfortunately, political committees have not been filing detailed reports of committees. $1,153,735, of which $1,040,526 was given Gene Autry, former cowboy star and chair­ to the Republican Party and its candi­ campaign contributions and expendi­ man of the board of Golden West Broad­ dates and only $107,109 was given to the tures in compliance with the law. Arti­ casters, owners and operators of a chain of Democratic Party and its candidates. cles appearing in the Washington Post radio and television stations. Autry and his It is reasonable to assume that the on November 9, 1968, and again on No­ wife are listed as giving $13,000 to various proportions of the contributions from vember 13, 1968, show that many Repub­ Nixon committees. Golden West's president such families remain the same today. lican fundraising committees did not Robert 0 . Reynolds, and his wife were listed meet the deadline for the filing of their as giving $5,000. In 1964, Autry gave $20,000 Detailed and timely reports from all to President Johnson's campaign just before candidates for Federal office and all po­ reports in the House of Representatives. At this date, the FBI, at the direction of election day. litical committees-National, State, and Frank L. Kellogg, president of Interna­ local-open to study by the public, not the Justice Department, is investigating tional Mining Corp. Kellogg is listed In the only in Washington but also in the States the failure of 21 of the Republican Com­ latest report as giving $17,500 to various where candidates reside and committees mittees to file their preelection finance Nixon committees. Samuel B. Roman, a di­ have their principle offices-will have a reports in accordance with the dates set rector of International Mining, is listed With salutory effect upon this political financ­ by the Federal Corrupt Practices Act. his Wife as giving $5,000. ing problem. I ask unanimous consent that the David Van Alstyne, Jr., a partner In the securities firm of Noel Van Alstyne and board My bill requires complete disclosure Washington Post items of November 9 and 13 be inserted in the RECORD at this chairman of New Idrla Mining & Chemical from every committee spending $1,000 or Co. Van Alstyne Is listed as giving $19,000 in more per year and from every candidate point in my remarks. the closing days of the campaign. for Federal office, covering receipts and There being no objection, the articles William L. McKnight, former board chair­ expenditures and including primary as were ordered to be printed in the RECORD, man of Minnesota Mining & Manufacturing well as general elections. as follows: Co. McKnight, a longtime contributor to [From the Washington (D.C.) Post, Nixon Is listed as giving $24,000 in the lat­ Emphasis must be placed today upon est filing. almost total disclosure. Strict limita­ Jan. 3, 1969] RECORD $21 Mn.LION RAISED FOR NIXON BID Richard C. Pistell, board chairman of Gold­ tions on election finances is impractical field Corp., which deals in zinc, lead and gold. and uninforcible. (By Walt.er Pincus) Plst.ell is listed as contributing at least This bill extends Federal jurisdiction President-elect Nixon's national fund­ $17,500 to various Nixon committees. so as to cover the following matters: raising committees reported they raised a The total reported raised for the Nixon record $21 milllon to finance his race against campaign exceeds by some $4 milUon the pre­ First. Over all primary elections, Hubert Humphrey and George Wallace. caucuses, and conventions to nominate vious record campaign receipts in 1964 by More than $6 million of that total was the Goldwat.er organization. That fund­ or elect candidates, and over all presi­ reported received by the GOP committ.ees be­ raising record was aided in large part by dential preference primaries. tween Nov. 1 and Dec. 31. Thus, It arrived more than $8 million in small contributions Second. Over all political committees, either in the last four days of the campaign of less than $100. National, State, or local, which receive or after Nixon was elected. The GOP committees reported they had Final 1968 filings from the 22 Republican paid out, through Dec. 31, slightly more or spend in excess of $1,000 per year in committees, together with some 60 Hum­ support of candidates for Federal office. than $20.4 million on the presidential cam­ phrey-Muskie fund-raising groups and the paign. This would Indicate there Is still at Third. Prohibit all firms which are ne­ single Wallace campaign organization, ar­ least $600,000 available to cover remaining gotiating for or performing Government rived at the House Clerk's office yesterday­ bills and some transition costs. contracts from making any contribution nine days before they were due by law. SPENT $7.4 MILLION ON NETWORK TV in behalf of a candidate, political com­ It marked ~he first time, In the memory mittee, or party. of the House File Clerk employes, that the The Federal Communication Commission major parties had filed their dues fund­ yesterday reported presidential candidates Fourth. Require each candidate and ralslng statements before the deadline. spent $7.4 million for network television dur­ each political committee to file quarterly The FBI, at the direction of of the Justice ing last year's general election campaign­ reports plus two additional reports be­ Department, Is investigating the failure of almost twice the amount spent during the fore each primary or general election, in 21 of the Republican committees to flle their 1964 election. precise detail, with the Clerk of the pre-election finance reports at the deadlines According to a survey of the three net­ House of Representatives, the Secretary set by the Federal Corrupt Practices Act. works, the Republicans spent $4.2 milUon 1954 CONGRESSIONAL RECORD- SENATE January 28, 1969 for spots and programs time last year while terday that "paperwork has been :finished on Fisher, who was George Romney's finance the Democrats spent $2.5 mllllon. The Wal­ a couple of more committees" and they Will man, ls general chairman of the United lace campaign bought network time costing be mailed to the House Clerk "as soon as we Jewish Appeal. During the campaign, Fisher $681,491. can get the treasurers to sign." acted as a liaison man between Nixon and In 1964, the Johnson-Goldwater organiza­ Asked how many committees remain to file Jewish groups. He was with the GOP candi­ tions together purchased a total of $3.8 mil­ reports, Middendorf replied, "I Just don't date when he addressed B'nal B'rith, the lion In network time. have the facts." Though he is GOP treasurer, Jewtsh service organization, In Washington The amounts reported yesterday were only Middendorf has not directed fund-raising for and arranged a meeting In New York between one part of the total television time pur­ the Nixon campaign. That has been handled Nixon and prominent U.S. Jewish leaders. chased by the candidates. All three purchased by former Eisenhower Budget Director Mau­ Fisher was listed as giving Just $500 to Sen. both spot and program time In individual rice Stans. Barry Goldwater In the 1964 campaign. markets-or cltles---around the country. No Stans has not been available to answer Henry Salvatori of Los Angeles, Salvatori report Is yet available on local time pur­ press questions on the delayed Nixon reports. and his Wife were listed as giving $40,000. chases. Middendorf said, "We're not trying to cover President of a California oil tool manufac­ The Humphrey-Muskie campaign, with its up things . .. I just think this law is terribly turing company, Salvatori was a major :fi­ purchase of network time for showtng of archaic and burdensome." He said lack of nance figure In the 1964 Goldwater campaign half-hour films, outspent the Republican In clerks had prevented :filing on time. as well as In 's successful gu­ that category by some $30,000. The Nixon Asked why two of the late reports received bernatorial effort In California. organization, however, purchased 110 network by the Clerk Nov. 4, had covering letters Two top executives of the Ford Motor Co.­ spot commercial spots costing $2.6 million. dated Oct. 22, Middendorf replied, "We post­ Benson Ford and John Bugas together with The Democrats bought 37 network spots cost­ dated them ... they were prepared the 28th their wives accounted for $24,000. ing $844,313. or 29th." L. B. Maytag, Jr., of Miami, president of House Clerk Jennings, In discussing the National Airlines, ls listed as giving $21,000 (From the Washington (D.C.) Post, notices to the five delinquent GOP commit­ to the Nixon committees that have reported. Nov. 9, 1968] tees, stressed he had no "enforcement pow­ John Shaheen of New York is listed as giv­ GOP PRESSED FOR TARDY FuND REPORTS ers" to require disclosure. He said reminders ing $7000 by the reporting Nixon-Agnew such as those sent the Republican organiza­ committees. Shaheen is a :financier who last (By Walter Pincus) tions, are often sent to House members who year retained Nixon as his attorney to nego­ Clerk of the House W. Pat Jennings yes­ fall to file their required report. As for the tiate tax-exempt status for an oil refinery In terday sent tardy notices to five national law itself, Jennings termed it "inadequate Newfoundland, Canada. Recently, Shaheen Republican committees which raised funds ... It should be revised." proposed to build another refinery in for Richard Nixon's successful presidential Attorney General Ramsey Clark, who does Maine--a matter that already has been pro­ campaign but have not yet :filed reports due have enforcement responsibility for the act, posed by Occidental Oil Co., and Is opposed five days before the election under provi­ told a news conference Wednesday that the by major domestic U.S. oil companies. sions of the Federal Corrupt Practices Act. Justice Department--lacklng a notice of any Richard J. Buck of New York, a vice presi­ Jennings, a former Democratic Congress­ violation from the Clerk of the House--would dent of the brokerage firm of Bache & Co., man, administers the filing provisions of the not initiate any Investigation of failure to who with his wife was reported as giving law. He said yesterday this was the first time, file by the Republicans. Clark did say the $15,000. Buck, along with Nixon, is a also on according to long-time staff members, that purpose of the act was to advise voters-be­ the board of directors of Harsco Corp., a a major party had failed to file its pre-elec­ fore election day-"from whence comes sup­ manufacturer of steel products. tion reports. port of a candidate." Nicholas de Arroyo of Washington. The Yesterday-more than two weeks after Clark's sensitivity toward his role In the former Cuban ambassador to the United they were due by law-three additional Re­ GOP's delayed filings was best Illustrated on States, under the Batista regime, Is listed as publican committee reports representing Monday, election eve. At that time he first giving $9000 to Nixon-Agnew committees. $220,000 In campaign funds were delivered to accepted-and then refused--a CBS network Kingman Gould, Jr., of Washington. The the Clerk's office dated October 26. television news Interview on the purposes of partner in Washington building ventures of The treasurer of one committee-and the the campaign filing law. According to aides, D. F. Antonelli (who contributed to the notary who signed all three reports--£ald he did not want to appear to be using his Humphrey campaign), Gould and his Wife they had been completed before Election office to attack the Republicans the day be­ are listed as giving $12,000 to the Nixon com­ Day. Donald L. Mlller, a Washington public fore the elections. mittees. relations man who serves as treasurer of the The Pews of Philadelphia, traditional GOP Committee for a Republican Congress, said (From the Washington (D.C.) Post, Nov. 13, donors whose money stems from the Sun 011 yesterday he signed the report "last week ... 1968) Co., were listed as giving $22,000 to the gave It to a messenger who took It back to MORE DATA Fu.ED ON GOP F'uNDS Nixon-Agnew committees. the Republican National Committee." Arthur K. Watson of Armonk, N.Y., was "It was my understanding," Mlller said (By Walter Pincus) In answer to questions, "that (the report) Seven more Republican committees­ listed as giving $10,000. A top official of IBM, was to be sent (to the House clerk) that which together raised nearly $1 million Watson Is the brother of J . Watson, Jr., who day." Miller's only explanation for Its delay for the Nixon-Agnew campaign between was a big donor to the Humphrey campaign. until yesterday was "perhaps the slowness of August 8 and October 21-:flled reports with Charles Luckman of Los Angeles. An archi­ the malls." the Clerk of the House yesterday, one week tect who was listed as giving $16,250 to Pres­ Miller would not say who at the Republi­ after Election Day and 17 days after the legal ident Johnson In 1964, Luckman and his wife can National Committee sent the report to deadline set by the Federal Corrupt Prac­ gave at least $7000 to Nixon, according to re­ him for signing. "Give me a day," he said. tices Act. ports filed so far. "I can't tell you about It until I get to my The filings brought to 12 the number of Federal law limits a donor to $5000 to one office." Nixon-Agnew committees that have sub­ committee. But It puts no limitation on the Under the law, national fund-raising com­ mitted reports required by law 10 days before number of committees that can receive con­ mittees are required to :file two reports be­ the election. Together they represent con­ tributions. Therefore, to h andle donations tween Sept. 1 and Election Day. The first tributions of about $7.5 million and spending above $5000 the campaign organizations In was due Oct. 26, the second Oct. 31. of Just over $7 million. both parties set up special committees. The Both the Wallace organization and more Nixon aides have said they spent between Democrats had more than 25 national groups. than 23 Humphrey-Muskie campaign com­ $17 million and $20 million on the campaign. Many of the contributors to these committees mittees filed the required reports prior to the Sources In the President-elect's campaign gave more than $100,000. election. organization have said some 20 committees Along With the seven new Nixon-Agnew The Nixon organization-which ls said to raised and spent money on the campaign. committees, the Republicans yesterday also have more than 20 committees handling Though Nixon aides admit there are stlll filed one report that was due five days be­ money-flled reports for only five committees more committees that have not yet made fore Election Day. Four other fundraislng before the election. They arrived at the their Initial pre-election :flllngs, yesterday's commlttees--plus the seven that :filed yester­ Clerk's office Nov. 4, the day before the vot­ reports gave the first clear Indication of who day-till must also file these reports. ing, and nine days after the legal deadline. the larger donors were to the Presldent-elect's Last week, House Clerk W. Pat Jennings, Late arrival of the five reports, and failure successful campaign. reminded the Republicans that the five-day to :file by all the Nixon-Agnew committees Among the more prominent names: reports were still outstanding. It was the prevented public scrutiny of the sources of W. Clement Stone of Chicago, president of first time such action had been taken against contributions before the election. Combined Insurance, Co. of America. With one of the two major parties. In Key Biscayne, Fla., yesterday, Nixon's his wife, Stone has been reported as con­ Both the Wallace Campaign and the Immediate staff refused to discuss the han­ tributing $64,000 to various Nixon-Agnew Humphrey-Muskie Democratic committees dling of campaign fund reports. Ron Zeigler, committees. Other reports show he gave at filed both their pre-election reports around Nixon's press secretary, cut off questioning on least $18,000 to Nixon's primary campaigns in the legal deadlines and before election day. contributions, saying this was a matter for Oregon and Wisconsin. Aides at Nixon finance headquarters de­ the campaign committee In New York. Max M. Fisher of . An Industrialist scribed their money reporting as "a logistical J . Wllllam Middendorf II, treasurer of the and oil man, Fisher and his wife are listed as nightmare." They said nationwide fundrals­ Republican Nationnal Committee, said yes- giving $54,000 to various Nixon committees. lng had hampered the gathering of all the January 28, 1969 CONGRESSIONAL RECORD- SENATE 1955 fund reports. "Expense accounts are six should be rewritten or repealed and a Foltz' family, which otherwise qualifies months late," one finance aide said yesterday. comprehensive new election reform act for assistance, is not now eligible for Nonetheless, llke other groups filing on substituted for it. these benefits because of the effective election eve, the Republlcan committees yes­ Yet at the base of the political struc­ date of the act. terday contained computer print sheets bear­ ing the notation "List Run October 18." Un­ ture is money. Without it a political Chief Foltz died attempting to appre­ like those filed earlier, however, the covering party and its candidates are helpless to hend three men who were in the process letters were dated November 8 or later. reach the voters with their programs. of holding up the Union National Mount Earlier GOP covering letters had been dated Money is vitally needed but in my opin­ Joy Bank in Maytown, Pa. He died a few October 22. ion, there should be a cooperative effort minutes after being shot by one of the Yesterday's seven reports each said that between the country and its people. bank robbers, but did manage to wound money being reported had been collected be­ In view of the fact that only national two of the holdup men before his death. tween August 8-the day of the Nixon nom­ or interstate committees are required to All three of the robbers were later ap­ ination-and October 21. Under the law, all prehended, largely because of Chief contributions raised prior to September 1 file financial statements with the Clerk should have been reported in the mid-Sep­ of the House of Representatives, an ac­ Foltz' prompt response to the holdup tember filing. curate estimate of the total receipts and alarm and this subsequent action. expenditures of the major parties cannot Chief Foltz was an experienced po­ Mr. CANNON. Mr. President, the bill be made. However, the Democratic and liceman who had been a constable, a would require all clerks of the district Republican fundraising committees re­ chief deputy sheriff' for 10 years, and a courts, Clerk of the House, and Secretary ported expenditures in excess of $35 mil­ department store security guard before of the Senate to receive, maintain, and lion. Estimates going back as far as 1956 becoming the East Donegal Township prepare filing, coding, and publishing ranged as high as $150 million in total chief of police. systems so as to provide broadest pos­ expenditures on a nationwide basis for Both the bank involved and the East sible public disclosure and supervision that year. In consideration of the in­ Donegal Township officials have assisted over all campaign funds and candidates creased costs of campaigning during the the Foltz family. However, the family and committees. past 12 years, that estimate reasonablY really needs and deserves the benefits There is a critical need for a new law could be raised to over $200 million for that the Congress provided for the sur­ governing Federal election financing and 1968. vivors of policemen killed in the line of the reporting of those finances in detail. Tax incentives such as tax credits and duty. An additional feature of this bill, Mr. tax deductions are cooperative and mu­ As I have stated, Chief Foltz' family President, is a new title, Income Tax tually beneficial. Each would lose a little would have qualified for assistance had Credit or Deduction for Political in revenues but gain far more in mutual the Police Survivorship Act been law at Contributions. trust and interdependence. the time of the tragic bank robbery. Election costs are so burdensome upon During its deliberations, I hope that Moveover, one of the compelling argu­ candidates and political parties that the Senate will give careful consideration ments for just this type of legislation great efforts have been made to explore to the adoption of tax credits and tax was presented to the Subcommittee on new sources of revenue for candidates deductions in preference to a system Criminal Laws and Procedures, which and parties. Various proposals have been which merely depletes the Treasury with­ held hearings on this measure, by the explored without much success. I believe out guaranteeing, in the true sense, any then legislative chairman of the Fra­ that previous suggestions for modest tax effective control over campaign spending. ternal Order of Police, who brought the credits or deductions have received death of Chief Foltz to the attention of greater approval than other plans. the subcommittee. Therefore, this bill will offer a tax S. 736-INTRODUCTION OF BILL FOR Delay in the legislative process should credit of one-half of the amount of the THE RELIEF OF THE SURVIVORS not penalize Chief Foltz' family. My political contribution but not to exceed OF MARVIN R. FOLTZ bill is an act of simple justice on behalf a total credit of $20 per individual per Mr. SCOTT. Mr. President, the 90th of a man who continually risked his life calendar year. Alternatively, a contrib­ Congress enacted the Police Survivor­ to ensure the safety of the public. utor could claim a tax deduction not to ship Act providing for compensation to The VICE PRESIDENT. The bill will exceed $100 per calendar year. any local policeman who is disabled, or be received and appropriately referred. Two of my bills-S. 2426, passed by to his survivors if he is killed, while ap­ The bill CS. 736) for the relief of the the Senate in 1961, :.i.nd S. 2541, reported prehending persons suspected of having survivors of Marvin R. Foltz, was re­ to the Senate in 1966-contained pro­ committed a Federal crime. ceived, read twice by its title, and re­ visions, as reported, calling for a tax This measure was introduced by the ferred to the Committee on the Judi­ credit of one-half of the amount of a Senator from Arkansas (Mr. McCLELLAN ) ciary. political contribution but not to exceed and I joined in cosponsoring it and $10. Alternative proposals suggest a tax worked for its passage in both the Sub­ S. 739-INTRODUCTION OF BILL ON deduction not to exceed $100 in a cal­ committee on Criminal Laws and Pro­ endar year. cedures and the full Judiciary Commit­ MEETING THE WELFARE CRISIS Tax credits and tax deductions have tee. Mr. MONTOYA. Mr. President, I in­ been attacked on the grounds that a tax This act is an appropriate recognition troduce, on behalf of myself and Sena­ credit would be of real benefit only to of the contribution made by local police tor ANDERSON, Senator HARRIS, and Sen­ the low-income wage earner; that a tax forces in this Nation's fight against ator METCALF, for appropriate reference, deduction would benefit the large wage crime. Local law-enforcement officers a bill which would direct the Secretary earner more; that both types of incen­ often supplement the activities of Fed­ of Health, Education, and Welfare to tives would be costly or difficult to ad­ eral law-enforcement personnel which conduct certain demonstration projects minister, and so forth. Also, there is the lessens the need for a larger Federal to encourage recipients of aid to families problem of giving the benefit of a tax in­ force. In performing this duty, local of­ with dependent children-AFDC-to centive to those who owe no tax and so ficers are sometimes severely injured or seek employment. forth. killed. This is reason enough for the Fed­ The measure is identical to S. 4174, However, almost every wage earner eral Government to assume some re­ which I introduced just prior to the 1968 must file a return whether he pays a tax sponsibility toward the local agencies general elections and the ensuing con­ or not and some method could be devised which often are able to maintain onlY gressional recess. As a result, final ac­ to afford him a credit against taxes or minimal compensation programs. tion was never taken on the previous bill. even a partial refund. There are prob­ I today introduce legislation to aid the However, the Committee on Labor and lems, very real problems, as we all know, family of a Lancaster County, Pa. police Public Welfare did have an opportunity in finding new and better methods for chief who was killed by bank robbers in to request comments from the Depart­ financing political campaigns. Existing, 1967. My bill would permit the surviv­ ment of Health, Education, and Wel­ outmoded ceilings and limitations must ing wife and daughter of Chief Marvin fare on the proposed measure, and in a be disposed of; reporting requirements R. Foltz to receive benefits under the Po­ letter dated January 18, 1969, to the must be broadened and made more de­ lice Survivorship Act which was passed chairman of the committee, former Sec­ tailed; the entire Corrupt Practices Act subsequent to Chief Foltz' death. Chief retary of Health, Education, and Wel- CXV--124-Part 2 1956 CONGRESSIONAL RECORD- SENATE January 28, 1969 fare, Wilbur Cohen, endorsed the legis­ of the system which led to some impor­ provisions which the Congress enacted to lation and recommended its enactment. tant changes in the welfare program, deal with this growing crisis. And it is With this favorable reaction from although we also took some action which interesting to note, Mr. President, that Secretary Cohen, as well as the generally I believe was unfortunate but which I during the period when Congress was favorable reactions I have received from believe we will correct in time. considering these measure&-from March various State departments of welfare But, before I describe some of those 1967 to December 1967-this AFDC pro­ from whom I solicited comments, I am actions we took last year, let me give gram added almost a half a million peo­ hopeful that prompt action will be the Members of this body a brief descrip­ ple to the rolls. Just think of that-dur­ forthcoming during this session of Con­ tion of those who are on welfare. The ing a 9-month period the rolls increased gress, since I am firmly convinced that Federal Government assists the States by well over 400,000 people. In the 1967 it would contribute to the solution of one in financing four separate programs of social security amendments, we took, I of the most pressing problems of our cash public assistance. Three of the believe, several important and construc­ time. programs are aimed at adults. The first tive steps to meet the welfare crisis. We Mr. President, as I indicated to my is old-age assistance, which gives money required the States to supply adequate colleagues here in the Senate on October to needy people over age 65. With the day-care services to the mothers in these 9, 1968, when I first introduced this coming of age of the social security pro­ families who are referred for jobs or measure, many people have said and gram and the increased benefits which training. We set up a special work-train­ with much reason that our present wel­ we passed last year, only a small pro­ ing program to be run by experts of the fare system is bankrupt and must be portion of the aged must depend on pub­ Labor Department and directed solely at completely overhauled. Many are press­ lic assistance today. Only one out of 10 AFDC recipients. ing for some form of guaranteed annual aged people receives public assistance We recognized that there were only a income or a form of negative income tax and half of those also get some social very small proportion of able-bodied men to take its place. security benefit. Today, the typical per­ on the AFDC roll&-less than 80,000 out Mr. President, I believe that one of son on old age assistance is a widow of over 5% million recipients-but we the most terrible mistakes we could make about 76 years of age. The number of did not ignore them. We required that in response to the welfare crisis would people on old-age assistance is continu­ each of them be referred to the work be to adopt a system which is based on ing to go down even though the number incentive program within 30 days of the theory that millions of our citizens of older people continues to rise. It is coming on the rolls and we included are to be handed out a dole and then not this program which has created the other measures to assure that able­ forgotten. This would be wrong from so welfare crisis. bodied men were trained and placed in many viewpoints. It would be expensive; The next adult assistance program is jobs. it would be difficult to carry out. But, the program which helps the States to Finally, Mr. President, we required the most importantly, it would be in a very finance payments to the blind. The num­ States to ignore the first $30 a month in real sense represent a decision to put ber of blind people who have to depend earnings of a public assistance family millions of people on the trash heap. It on public assistance also is getting fewer and one-third of the earnings above that would be saying to those millions that and fewer. Only 80,000 of the blind have amount. Thus, the Congress attempted you are so hopeless and we have so little to depend on assistance and the number to meet the problem of the growing rolls confidence in you and in our country is going down each month. It is not this by measures which were designed to fur­ that all we are going to do is give you program which has created the welfare nish support to the hundreds of thou­ money and then relegate you to the nooks sands of AFDC families who want to get and crannies of America. Mr. President, crisis. The third adult category is aid to the off the rolls and become self-supporting this is not the right way, nor the best and independent. Mr. President, I be­ way for America. permanently and totally disabled. This category of assistance has been going lieve we are on the right track. People We hear some who say that we are upward on a very gradual basis ever since do not want to be shoved aside and for­ now such a productive Nation that it it was set up in 1950. And it is likely that gotten while the rest of the Nation pro­ should be public policy to allow millions gresses. They want to be a part of that of people to live off the economy without the numbers will continue to grow gradu­ ally until the social security disability action. They want to be independent and producing anything which contributes to self-reliant. But we have a welfare sys­ that economy. This is utter nonsense. program and workmen's compensation programs are modified to protect more tem which not only does not help people How can anyone say that we do not have get off the rolls but actually hinders to rebuild our cities, plan better the de­ workers and their families who are faced with the disability of the family bread­ them in their efforts to do so. And the velopment of our open areas, and de­ proposals for a guaranteed annual in­ velop our human resources? How can winner. But the numbers of disabled people who have had to go on public come or negative income tax will not anyone say that when so many human change that; rather, they would actually needs go unnoticed and unmet? There assistance has not gone up as fast as it would have if we had not had the social increase the ill effects in the present is plenty to do in America, and I say system. that we had better get doing it. But, Mr. security program, the vocational rehabil­ President, the way to make sure that we itation program, and other programs While the Congress has dealt with will not do anything is to adopt one of which help treat and prevent disability. what I believe are the three main in­ these schemes which is based on the the­ It is not this program which has created gredients of a successful attack on the ory that there is no work to do for many the welfare crisis. problem-adequate day-care services, people and that they should be neatly The one federally assisted program opportunities for work and sound train­ discarded and then forgotten. which has shewn continued and high ing, and an earnings incentive-we have There is little doubt, Mr. President, rates of growth is the program of aid not dealt with the third area in an effec­ that the present welfare system needs to families with dependent children­ tive manner. There may be more need to be amended to improve the chances AFDC. This program now accounts for for day-care services and we may need for people who have to depend on wel­ over two-thirds of all public assistance to give more financial support to the fare to get off the rolls and into produc­ recipients and well over half of the funds. training programs, but I feel certain that tive, independent lives. One thing which And this is the program which is growing we have not acted correctly in the area we must all keep in mind is that the very at high rates even during a period of high of work incentives. Thirty dollars and great majority of people who have had employment, low unemployment, and one-third is just too small. For example, unprecedented levels of economic activ­ the public assistance recipient who sees to go on public assistance do not want that she gains only $1 in net income for to be there. They want to get off. Mr. ity. Mr. President, this is the program President, what we must make sure of which is the cause of the welfare crisis. every $3 of work after the first few days is that the system works to help people This is the program to which we must of each month may very well think that get off the rolls and does not work in a turn our attention whenever we are there is not much use in leaving her way that gives people disincentives for considering the public welfare problem. children with someone else for such a getting off. And it is this program toward which my small gain. But, unfortunately, Mr. Pres­ The Congress has, over the past 2 legislation is directed. ident, there is hardly any research or years, taken some important steps in Let me now briefly remind my col­ experimentation with various forms of that direction. We conducted a study leagues of some of the more impartant work incentives on which the Congress January 28, 1969 CONGRESSIONAL RECORD- SENATE 1957 The Secretary of Health, Education, to bring the total annual income of h1a can base an informed and intelligent de­ family up to $2,600; cision in the matter. After more than 30 and Welfare would be required to com­ (C) in case such participant belongs to a years of the AFDC program, the Depart­ pare the results of my proposed system f amily consisting of three members, $1,000 ment of Health, Education, and Welfare with the results under the law, and with annually, or, 1f greater, the amount necessary still had not done one good study of the one or two other alternatives if the Sec­ to bring the total annual income of his family effect of the program on incentives to retary believes it to be desirable. The up to $3,200; work or how the problem could be met. Secretary would then prepare a formal (D) in case such participant belongs to a I personally believe that the 1967 pro­ report on the results of the experiment family consisting of !our members, $1,200 an­ nually, or, lf greater, the amount necessary vision will turn out to be inadequate. And, to the Congress. We would then be in a to bring the total annual income of his family unless we take steps now to get pertinent position to evaluate the proposals in an up to $3,800; information we still will not know the informed manner and arrive at a de­ (E) in case such participant belongs to a best route to take when results under the cision based on facts, not theories. family consisting of five members, $1,400 an­ 1967 provision are in. I believe the proposal which I have nually, or, if greater, the amount necessary to I suggest that a much more promising outlined will prove to be the most effec­ bring the total annual income of his family approach would be to allow all recipients tive. I believe it would reduce the costs up to $4,400; (F) in case such participant belongs to a to earn the difference between their of poverty and other assistance programs family consisting of six members, $1 ,600 an­ monthly grant from welfare and a rea­ over the long haul, simplify procedures nually, or, if greater, the amount necessary sonable standard of income. This is the for welfare eligibility and payment de­ to bring the total annual income of his kind of guarantee of annual income terminations, and add to the working family up to $5,000; which I would like to see-a proposal force through reduction of impediments (G) in case such participant belongs to a which says to the recipient that he can to employment. Moreover, I believe that family consisting of seven members, $1,800 earn up to the guaranteed level without my proposal will show that the propo­ annually, or, if greater, the amount necessary losing any of his public assistance. Thus, nents of the negative income tax and to bring the total annual income of his family up to $5,600; and instead of having a guaranteed level other proposals which would hand out (H) in case such participant belongs to a which is financed out of tax money, we millions of tax dollars for doing nothing family consisting of more than seven mem­ would have a level which people could are on the wrong track, both for the bers, such amounts as the Secretary shall de­ work toward. This is the type of propasal people involved and the Nation as a termine to be appropriate to carry out the I would like to see studied. whole. purposes of the demonstration project. As I indicated earlier, AFDC recipients But I am willing to put my beliefs to (2) The amounts provided for in para.­ want to work. A study conducted in the the acid test of experience. graph (1) of this subsection shall, when ap­ ghettos of New York City showed that plied to any participant in a demonstration Mr. President, I also submit and ask project under this Act who lives on a farm, the overwhelming proportion of the unanimous consent for inclusion in the be reduced by 30 per centum. women on welfare wanted to get trained RECORD at this point the text of my bill, Sec. 2. Demonstration projects under this and placed in good jobs. And, I submit, and I urge Senators to study it and then Act shall be carried on for a periOd not in it will go much better in the future of join me in securing its prompt passage. excess of 12 months. The Secretary shall, at. our country if we have children growing The VICE PRESIDENT. The bill will the earliest practicable time after the termi­ up today with the example of a parent be received and appropriately referred; nation of such projects, make a report to the­ going out to work and gaining the satis­ Congress on such demonstration projects to­ and, without objection, the bill and chart gether with any recommendations he may faction of being independent, rather will be printed in the RECORD. have for changes in the provisions of title­ than the example of a parent who draws The bill (S. 739) to direct the Secre­ IV of the SOcial Security Act which relate­ his dole and spends the long days in tary of Health, Education, and Welfare to earnings by recipients of money payments idleness. The parent could hardly have to conduct certain demonstration proj­ under programs established pursuant to such self-respect in such a situation, and he ects designed to encourage recipients of title. most likely would not have the respect of aid to families with dependent children The chart, presented by Mr. MONTOYAr children, family, or friends. to seek employment, introduced by Mr. Mr. President, my bill would direct the is as follows: MONTOYA, for himself and other Sena­ EXHIBIT 1 Secretary of HEW to conduct a substan­ tors, was received, read twice by its title, tial experiment in appropriate areas of TABLE OF EARNI NGS EXEMPTIONS ALLOWED AID FOR referred to the Committee on Finance, DEPENDENT CHILDREN (AFDC) FAMILIES the Nation of the kind of proposal which and ordered to be printed in the RECORD, I have outlined. Instead of the $30 and as follows: Farm (70 percent of one-third earnings exemption, ADFC s. 739 Nonfarm nonfarm) 1 families could earn the difference be­ Be it enacted by the Senate and House of Number Weighted Off- Weighted Off· tween their grant and the poverty level Representati ves of the Untted States of of family cost cost set forth in my formula. America in Congress assembled, That (a) the members standard stii~~~9 standard si:~:i'!~a· Mr. President, I ask unanimous con­ Secretary o! Health, Education, and Welfare sent to have printed in the RECORD at (hereinafter referred to as the "Secretary") 1 member • •• $2, 000 $600 $1 , 400 $420 the conclusion of my remarks a chart shall, under the authority contained in sec­ 2 members • • 2, 600 800 1, 820 560- tion 1115 of the Social Security Act, conduct 3 members • • 3,200 2,240 700 containing the formula of earnings ex­ 4 members •• 3, 800 U88 2,660 840 demonstration projects under which recipi­ 5 members •• 4, 400 1,400 3, 080 980 emptions which I have in mind for ents of aid to famllies with dependent chil­ AFDC families, and setting forth specific 6 members• • 5, 000 1, 600 l , 12(). dren (under programs established pursuant 7 members• • 5, 600 1, 800 H~ 1,260 examples of how the formula would be to title IV of such Act) who participate in applied and the effect it would have in such projects will be permitted to earn, with­ 1 This is consistent with the social security poverty index, providing work incentives over and above out having any reduction in the amount of which has a 30-percent reduction for rural areas. the present law. the money payments otherwise payable to The effect of the above would be to exempt (See exhibit U them under such programs, such amounts as AFDC welfare recipients from having deduc­ Mr. MONTOYA. Mr. President, there may be necessary to bring the total annual tions made against their welfare payments would also be included in the legisla­ income of the family unit to which they !or earning additional income. Thus, a non­ belong above the poverty level. farm family of 4 members could earn the tion a built-in formula for raising (b) (1) Participants in such demonstra­ dlfrerence between welfare payments and the income level automatically-accord­ tion projects will be permitted to earn (with­ income up to $3,800, or an additional $1,200, ing to the Department of Labor cost-of­ out having any reduction in the amount of whichever fs gTeater. living consumer indexes--when the cost the money payments otherwise payable to The following example& (based on a family of living increases; that is, standards of them under a program est ablished pursuant of four) show how the formula would be income levels would be kept current with to title IV of the Social Security Act) applied, and set forth the work incentives living costs. Moreover, no State would be amounts as follows : contained in the formula over and above permitted to lower its welfare payments (A) in case such participant belongs to a existing law: family consisting of one member, $600 an­ 1. New Jersey (non-farm): New Jersey as a result of the enactment of such leg­ nually, or, if greater, the amount necessary to pays a monthly assistance allowance of $280 islation, nor to exclude provisions for bring the total annual income of his family for a family of four--0r a total of $3360 per added welfare benefits for those having up to $2,000; annum. This represents one of the highest "special needs"; that is, medical care, (B) in case such participant belongs to a public welfare payments in the 50 states, special diets, care by an attendant, and family consisting of two members, $800 an­ meeting 100% of basic needs. Yet, there must so forth. nually, or, if greater, the amount necessary be incentive !or these families to become 1958 CONGRESSIONAL RECORD-SENATE January 28, 1969 self-supporting, and by applying the above icans and to guide this community in formula the effect would be a.s follows: complaints and make reoommenda.tions. The $3360 in welfare benefits ls but •440 solving its many problems. The Inter­ The Committee will be concerned with below the non-farm weighted cost standard; agency Committee placement service the establishment of relationships with hence, the family would be permitted to earn has referred well over 2,000 job appli­ private groups and organizations who an additional $1200 since this Is the greater cants to both Government and private can offer solutions to specific problems. amount. (Comparison with Existing Law: industry. The analysis of community needs as Under present law, If the mother In an AFDC Areas of action covered by the Inter­ presented in conferences and to contact family of four has annual earnings of ,2200, agency Committee include education, she would have her assistance grant of •3360 officers and development by the Com­ reduced by $1227 to ,2133 for a total Income health, welfare and poverty, housing, mi­ mittee staff of answers to these needs. of •4333. Under this proposal, the family grant labor, civil rights, immigration, The Committee would be responsible for would have $3360 plus ,1200 In earnings tor military, employment, economic develop­ consulting with and advising the co­ a total Income of $4560.) ment, and research. While progress has operating agencies in policies and pri­ 2. New M exico (non-farm): My own state been made in attaining economic inde­ orities, implementation of programs and of New Mexico pays $183.36 monthly to a pendence for this deprived minority enforcement of guidelines. family of four, meeting 95% of the $193 tor group, it becomes evident that a great The continuation of research into monthly basic needs-for a total of $2200. need exists for a stable organization to problem areas. The Committee is en­ This is $1600 below the $3800 weighted cost standard for a non-farm family of four, assume responsibility for the orderly and visioned as operating with a small staff but ls greater than the $1200 offsetting successful completion of such transfor­ of bilingual and bicultural specialists, standard; hence the family would be permit­ mation. I would like to note at this point and, therefore, is not intended to dupli­ ted to earn an additional $1600 yearly with­ that the Presidential order establishing cate the massive data collection proc­ out penalty to welfare payments. (Com­ the present Committee is scheduled to esses undertaken by Cabinet depart­ parison with Existing Law: Under present expire in June 1969. ments. Rather, the Committee will foster law a family of four In New Mexico would The economic plight of the Spanish­ the necessary studies and will synthesize have their grant reduced from $2200 to $1173, based on earnings of $2200 for a total speaking American community is the the information obtained from agencies income of $3373. Under this proposal, how­ most basic problem and is largely a re­ and from hitherto untapped community ever, the family could achieve a total income sult of lack of educational opportunity. resources so as to formulate viable policy of $3800 based on the same earnings.) From this fundamental exclusion have leading to a more effective and efficient 3. Mississippi (farm): The State of Mlssls­ stemmed the chronic problems in health, Government-wide approach. slppl pays but •40 per month to a family employment, housing, and related fields. In fulfilling its advisory and educative of four, although basic needs as established By almost any socioeconomic measure, functions for both Government and by the State are •194.09. Assuming that farm the Spanish-surnamed Americans, as a community, the Committee will obtain family costs are 70% of ·-he cost-of-living group, are very distant from the legend­ information from departments and agen­ of non-farm tamllies, the •480 in welfare payments deducted from the $2600 cost ary American dream. In a phrase, one cies on the extent, nature, operation, and standard would be $1180--the additional might sum up the Spanish-speaking provisions of ongoing or proposed pro­ amount which the family would be permitted American as being at the "bottom of the grams of special relevance to the Span­ to earn since It ls greater than the $840 heap." In jobs-nearly 80 percent work ish-surnamed community. The Commit­ offsetting figure. ( Comparison with Ezisttng in unskilled or semiskilled jobs-porters, tee, insofar as possible, will rely on the law: Under present law, 1f a family had laborers, elevator operators, and so forth; facilities and services of established earnings of as little as ,1080 no further as­ in education-most Spanish Americans agencies in such matters as general sistance would be paid. But under this pro­ posal, a family of four could have earnings barely complete the eighth grade and technical expertise. The Committee will of as much as $2810 and stm receive the many are functionally illiterate as in endeavor to promote a better flow of in­ $480 in public assistance grants.) Texas where 40 percent of the Spanish­ formation going from agencies to the speaking population is illiterate; in in­ community so that only special publica­ come--nearly 50 percent of all Spanish­ tions from the Committee itself will be S. 740-INTRODUCTION OF BILL TO speaking American families fall below necessary. ESTABLISH THE INTERAGENCY the poverty line of $3,200; in business-­ The establishment of an employment COMMITEE ON MEXICAN-AMERI­ they own less than 1 percent of the U.S. aid service to direct job applicants to CAN AFFAIRS businesses. Thus, the Spanish-speaking available positions. This activity will in­ American is not only a numerical minor­ volve a service to aid individuals in the Mr. MONTOYA. Mr. President, today, ity, his level of living and participation in preparation of proper application forms on behalf of myself and Mr. BROOKE, Mr. the economy is so minor as to be difficult both for government and private indus­ CRANSTON, Mr. FANNIN, Mr. GOLDWATER, to measure. try; distribution of these forms to offices Mr. HARRIS, Mr. HART, Mr. HARTKE, Mr. The proposed Committee will expand with outreach capability; assistance in HUGHES, Mr. JACKSON, Mr. KENNEDY, Mr. upon the functions of the present Inter­ procedures to lodge complaints of dis­ McCARTHY, Mr. McCLELLAN, Mr. MCGEE, agency Committee by involving all Amer­ crimination; and acquainting Govern­ Mr. METCALF, Mr. MONDALE, Mr. MUR­ icans of similar ethnic or cultural back­ ment and private employers with meth­ PHY, and Mr. YARBOROUGH, I introduce a ground. ods and resources by which they can measure to establish the Interagency Today, it is estimated there are 10 mil­ reach the talent within the community. Committee on Mexican-American Affairs lion Spanish-speaking Americans in the The stimulation of interest among as a statutory agency. Since its creation United States or 5 percent of the total Government agencies and private groups by President Johnson as a Cabinet Com­ population. Their diversity as a group is in funding technical assistance projects mittee on June 9, 1967, the presently striking-ranging from native born Mex­ in localities which have demonstrated functioning Interagency Committee on ican Americans and Puerto Ricans to the need for and ability to organize such Mexican-American Affairs has sought to emigrants from Latin America. Their projects. The Committee will seek to con­ identify the needs of the Nation's second similarities in language and culture, how­ duct such activities through cooperating largest minority group, provide guidance ever, are also striking. agencies rather than allocate new funds toward Federal programs that are al­ The measure which I am introducing of its own. A portion of this task must be ready in existence, and to recommend would provide for the alleviation of these the total involvement of local groups and new programs to meet the unique re­ conditions through a Central Govern­ organizations. quirements of the Spanish-speaking seg­ ment agency which can give impetus to Publicizing of all of these activities to ment of our population. an integrated Government-wide effort. I encourage wider participation by private During the past year and a half, the would cite examples of activities in which industry and organizations so that the Interagency Committee has made nu­ the Interagency Committee will engage: burden of reform is ultimately lifted merous program contacts at all levels of The sponsoring of conferences similar from the shoulders of Government and government as well as with private in­ to the ones held in the past dealing with returned to the democracy of the people. dustry and organizations. Guidance and problems of education and employment. These are but a few of the activities action have been provided both to com­ Cooperation would be extended in con­ through which the Interagency Commit­ munity projects and in individual hard­ ferences sponsored by other groups, in­ tee, as proposed in my legislation, will ship cases. Research has been conducted volving government officials and private serve to assist the Spanish-surnamed and materials published to acquaint the industry professionals as well as barrio community. Basically, the Committee population with Spanish-speaking Amer- residents and migrant workers, to hear will not be a program agency in that January 28, 1969 CONGRESSIONAL RECORD- SENATE 1959 it will not, it.self, fund programs. Instead, eral programs are reaching all Spanish may be necessary to carry out the functions it will act as a community advocate. Its Americans and providing the assistance they of the Committee and may obtain the serv­ need, and to seek out new programs that ices of experts and consultants In accordance constituency will be nationwide-wher­ may be necessary to handle problems that with section 3109 of title 5, United States ever there are Spanish-speaking Ameri­ are unique to the Spanish American com­ Code, at rates !or individuals not In excess cans-and its scope will be sufficiently munity. of the dally equivalent paid !or positions broad to cover the problem areas in more SEc. 2. (a) There is hereby established the under GS-18 o! the General Schedule under than a piecemeal fashion. So often, in Interagency Committee on Mexican-Ameri­ section 5332 of such title. our Government, we have found that the can Affairs (hereinafter referred to as the (b) Federal departments and agencies, In right hand does not know what the left "Committee"). their discretion, may detail to temporary hand is doing simply because of the divi­ (b) The Committee shall be composed of­ duty with the Committee such personnel as sion of efforts necessitated by our size. (1) the Secretary or Agriculture; the chairman may request !or carrying out (2) the Secretary or Commerce; the functions of the Committee, each such And so often the very people who are in (3) the Secretary or Labor; detail to be without loss of seniority, pay, greatest need of information and atten­ ( 4) the Secretary of Health, Education, or other employee status. tion are the very ones who are bewildered and Welfare; SEC. 7. Nothing in this legislation shall be by the vastness of our bureaucracy, our (5) the Secretary or Housing and Urban construed to restrict or infringe upon the economy, and our society. Development; authority or any Federal department or We need not, and cannot, await a na­ (6) the Secretary of the Treasury; agency. tional crises to prod us into completion (7) the Attorney General; SEC. 8. There are hereby authorized to be of a job barely begun. Within the next (8) the Director of the Office o! Economic appropriated such sums as may be neces­ Opportunity; sary to carry out the !unctions of the Com­ few years we should eradicate all traces (9) the Administrator or the Small Busi­ mittee under this Act, and any funds hereto­ of the institutionalized discriminatory ness Administration; fore made available !or expenses o! the In­ practices which still work to exclude the (10) the Commissioner or the Equal Em­ teragency Committee on Mexican-American Spanish-surnamed American from ployment Opportunity Commission most Affairs establlshed by the President's memo­ skilled and white collar positions and concerned with Mexican-American Affairs; randum of June 9, 1967, shall be available which still hamper his advancement. and for the purposes or this Act. Once the lines of communication are ( 11) such other officers o! Federal depart­ SEC. 9. The Committee shall, as soon as open between the Spanish-surnamed ments and agencies as may be designated by practicable, after the end of each fiscal year, the President or the chairman or the Com­ submit a report to the President and the community and American employers, the mittee (hereinafter designated) to serve at Congress of its activities for the preceding community will naturally and easily find the pleasure of the person so designating year, including In such report any recom­ it.s way to all levels and manners of em­ such officer. mendations the Committee deems appropri­ ployment. (c) The member referred to in subsection ate to accompllsh the purposes of this Act. The most basic demand being made of (b) (10) shall serve as chairman or the Com­ Mr. MURPHY. Mr. President, I am our economy-and perhaps our greatest mittee. The chairman shall designate one of the other Committee members to serve as pleased to join Senator MONTOYA in co­ test-lies in making really authoring this measure which would all This acting chairman during the absence or disa­ work for citizens. is the nuts and bility of the chairman. legislatively establish an Inter-Agency bolt.s of the problem we confront. One SEC. 3. (a) The Committee shall have the Committee on Mexican-American Af­ southwestern professor of economics, ac­ following !unctions: fairs. The purposes of the Committee cused of radical thinking, stated that he (1) to advise Federal departments and are: considered the free enterprise system the agencies regarding appropriate action to be First. To advise Federal departments best one possible-so much so that he taken to help assure that Federal programs and agencies regarding appropriate ac­ thought everyone should have a share are providing the assistance needed by Span­ in it. ish-surnamed Americans; and tions to assure that the Federal programs (2) to advise Federal departments and are providing the assistance needed by We still have opportunity to prove that agencies on the development and implemen­ Spanish-surnamed Americans. the economy and our whole tation or comprehensive and coordinated Second. To advise the Federal depart­ system of Government can work for policies, plans, and programs focusing on the ments and agencies on the development everyone, regardless of historical or special problems and needs of Spanish-sur­ of comprehensive and coordinated poli­ etJ:mic or~gin. By the end of this century, named Americans, and on priorities there­ this Nation must bring full economic under. cies, plans and programs focusing on the participation to the Mexican-American (b) In carrying out Its functions, the specific problems of Spanish-surnamed community as well as to other under­ Committee may foster such surveys, studies, Americans and to establish priorities developed groups of American citizens. research, and demonstration and technical thereunder. The establishment of an advocate assistance projects, establl.sh such relation­ Third. To mobilize government at all ships with State and local governments and levels and the private sector to identify Committee to aid in the uplifting of the the private sector, and promote such partici­ Sp~nish-surnamed American is, I firmly pation o! State and local governments and and attack the specific problems of Span­ beheve, one of the tools we must utilize the private sector as may be appropriate to ish-surnamed Americans. in this grand effort. I sincerely hope the identify and assist In solving the special As my colleagues know, the Mexican­ Congress will ad quickly upon this meas­ problems of Spanish-surnamed Americans. American citizens are an important part ure to insure the continuance of the SEC. 4. (a) The Committee is authorized of my State's population. Their contribu­ Interagency Committee and its work to prescribe rules and regulations as may be tions to my State and to the Nation are necessary to carry out the provisions or this numerous and significant. In fact, Mexi­ which is not yet completed. Act. I ask unanimous consent to have the (b) The Committee shall consult with and can Americans have contributed to every text of the bill printed at this point in coordinate its activities with appropriate facet of California's life from Father the RECORD. Federal departments and agencies and shall Serra to the Mexican-American men who The VICE PRESIDENT. The bill will utilize the factutles and resources o! such today are serving courageously in Viet­ be received and appropriately referred· departments and agencies to the maximum nam. The last time I had seen statistics and, without objection, the bill will b~ extent possible In carrying out Its functions. on the subject, Mexican-American sol­ printed in the RECORD. (c) The Committee is authorized In carry­ diers had won more medals of honor ing out its functions to enter into agreements than any other group. Despite their ac­ The bill (S. 740) to establish the Inter­ with Federal departments and agencies as agency Committee on Mexican-Ameri­ appropriate. complishments there are problems con­ can Affairs, and for other purposes, in­ SEC. 5. The Committee ls authorized to re­ fronting the Mexican-American com­ troduced by Mr. MONTOYA, for himself quest directly from any Federal department munity. I have been urging an increased and other Senators, was received read or agency any information It deems necessary effort to deal with the language problem twice by its title, referred to the 'com­ to carry out Its functions under this Act, and which often confront.s the Mexican­ to utilize the services and !acUltles o! such American children in my State to turn mittee on Government Operations, and department or agency; and each Federal de­ ordered to be printed in the RECORD, as the language barrier from a liability to partment or agency ls authorized to furnish an asset. I coauthored in 1967 the Bi­ follows: such Information, services, and !aclllties to s. 740 the Committee upon request or the chairman lingual Education Act. On Monday of Be it enacted by the Senate and House of to the extent permitted by law and within this week I wrote a letter to President Representatives of the United States of the llmlts of available funds. Nixon, Secretary Finch, and Bureau of Amertca in Congress assembled, That it is SEC. 6. (a) The chairman shall appoint and the Budget Director, Mr. Mayo, urging the purpose of this Act to assure that Fed- fix the compensation of such personnel as full funding of this program. I ask unani- 1960 CONGRESSIONAL RECORD- SENATE January 28, 1969 mous consent that the copy of the letter before the Senate Special Subcommittee on the Ford Foundation will try to solve with a that I sent to the President be printed Bilingual Education, outlined the experience $325,000 grant for language tralnlng program in the RECORD at this point. In addition, which was documented in a study by Colum­ In education schools. bia University that occurred 1n Puerto Rico Resistance to bilingual teaching also has the Los Angeles Times, which has been as follows: been noted among some principals and ad­ such a strong supporter of this needed "The researchers, ex­ Ininlstrators, although such programs have program, and in an editorial entitled plaining the astonishing fact that these ele­ been officially endorsed by school districts. "Breaking the Language Barrier," urged mentary school children in Puerto Rico-­ The answer ls more and better bilingual the full funding of the bilingual program. poverty-stricken, backward, 'ben!ghted', teaching. Although additional funds will be I ask unanimous consent that this edi­ beautiful Puerto Rico-achieved more required, the cost will be minor in compari­ torial be printed in the RECORD at this through Spanish than continental United son to the high price society pays for every States children did through English, came to dropout. point. I also ask unanimous consent that the following conclusion, one with extraordi­ excerpts of my testimony last year before nary implications for us here ... LETTER TO PRESIDENT NIXON FROM SENATOB the Senate Appropriations Committee "The conclusion is, in sum, that If the GEORGE MURPHY Spanish-speaking children of our Southwest dee.ling with bilingual program be printed DEAR MR. PRESIDENT: I want to call your at­ in the RECORD. were given all of their schooling through both Spanish and English, there ls a strong likeli­ tention to and urge your support for full There being no objection, the matter hood that not only would their so-called funding of the Bilingual Education Act. was ordered to be printed in the RECORD, handicap of billnguallsm disappear, but they "The critical need for this program ls evi­ as follows: would have a decided advantage over their dent by the following appalllng statistics: (1) Of 1.6 REMARKS Oli' SENATOR GEORGE MlJ'RPHY, RE­ English-speaking schoolmates, at least In the milllon Mexican-American elementary school, because of the excellence children entering the first grade in the five PUBLICAN, Oli' CALili'ORNIA, BEFORE THE SEN­ southwestern states, one million will drop out ATE APPROPRIATIONS COMMITTEE of the Spanish writing system. There are no reading probleins, as we know them, among before they reach the eighth grade. (2) Mexi­ BILINGUAL PROGRAM school children ln Spanish-speaking coun­ can-Americans in the United States have an The second program I wish to discuss and tries." average grade level of 7.1 compared to a grade urge full funding is the Billngual Education A Florida effort points not only to 1mb­ level of 9.0 for Negroes and 12.1 tor Anglo­ Act of 1967 which was also incorporated in stantlatlon of the Puerto Rico experience, Americans. the 1967 amendments to the Elementary and but also to its expansion. In 1963, public In my own state of Callfornia, I understand Secondary Education Act. I was pleased to schools In Dade County, Florida, embarked on that fifty percent of the Mexican-American co-author the blll. As the members of the a model blllngual education program. Al­ children drop out by the eighth grade. Yet, committee probably know, this program was though final statistical data ls not available, evidence and experience suggest that this conceived and initiated in the Congress and preliminary reports are most encouraging. need not be. Many countries of the world was enacted over the opposition of the Ad­ Perhaps even more significant are the results have successfully solved the problem by In­ ministration. The program has now been em­ regarding the Engllsh-speaklng children ln structing first in the youngster's mother braced by the Administration, but the level the blllngual program. Amazingly, these tongue and as soon as possible instructing at which funds have been requested indicates English-speaking chlldren are doing better in the youngster ln the national tongue. that the Adminlstratlon•s endorsement lacks English than their counterparts who were California ls moving to attack this serious the enthusiasm which the program needs. instructed ln English. Not only does the bi­ problem and to reverse the above appalling For, like the dropout prevention program, the lingual program have the potential and statistics. In 1967, Governor Reagan signed program is of little value unless it ls given promise of successfully attl\cking education into law needed and enl!ghtened legislation life by adequate appropriations. The House problems of youngsters whose mother tongue that permits Instruction ln Spanish in Call­ Appropriations Committee also refused to is other than Engllsh, but, apparently, if the fornia's publlc schools. appropriate any funds for this much-needed Florida Study ls correct, the "implications Since the enactment of the B!lingual Edu­ program. for education are extraordinary." cation Act 1n 1967, which incidentally was The m agnitude of the problem ls evident Mr. Chairman, I recognize the fiscal limita­ conceived and initiated by the Congress over by the following appalling statistics: tion under which we are laboring, but I urge the opposition of the former Administration, (1) Of 1.6 million Mexican-American chil­ you to see that these two Important programs there has been the greatest of interest in dren entering the first grade in the five which w!ll lay the groundwork tor exciting California 1n the promise and potential of Southwestern States, one million will drop breakthroughs ln education be permitted to the program. Last year, the Johnson Ad­ out before they reach the eighth grade. In move ahead. Society can afford to do no less. ministration gave token endorsement to the my own State of California, I understand program requesting only ten milllon dollars that 60 per cent of the Mexican-American BREAKING THE LANGUAGE BARRIER of the thirty Inllllon authorized. The House children drop out by the e!:hth grade. Issue: W!ll Congress this year a.gain fall to of Representatives failed to appropriate a (2) Mexican-Americans in the United provide sufficient financial support tor bl­ single cent. Thereafter, I personally pleaded States have an average grade level of 7.1, llngual teaching programs in U.S. schools? with the Senate Appropriations Committee compared to a grade level of 9 .0 for Negroes Congress ln 1967 finally decided to help to reverse the shortsighted action of the and 12.1 for Anglo-Americans. Mr. Chairman, break down the language barrier that so House and to fund the program. As a result, evidence and experience suggest that this llmits the educational opportunities for non­ the Senate Appropriations Committee pro­ need not be. Other countries have confronted Engllsh speaking students. vided ten Inllllon dollars and we were able to the problems of educating bilingual children To date, however, appropriations have hold 7.6 million dollars In conference. and some nations such as the United States fallen far short of the $30 milllon authorized Because of the critical nature of the prob­ and certain parts of Africa have insisted that for b1llngual education programs. The $7.5 lem, I urge your Adminlstratlon to enthusi­ instruction be In the national language only. million thus far allocated has not made astically get behind the Bilingual Education Many countries have successfully solved the much of a dent ln the barrier. Program and support its full funding. As a problem by instructing first in the youngsters Millions of Mexican-American youngsters co-author of the Blllngual Education Act, I mother tongue and as soon as possible, in­ have dropped out ot school simply because am confident that such an investment and structing the youngsters In the national lan­ they couldn't understand their teachers. Halt such an endorsement by the Adminlstra­ guage. Last year, Governor Reagan of Califor­ of all Mexican-American students ln Cali­ tion will be wise for the nation and will make nia signed Into law legislation that would fornia schools get no farther than the eighth a significant difference 1n the llves of many permit instruction in Spanish In California's grade according to Sen. George Murphy (R­ children. public schools. Callf.) , one of the sponsors of the blllngual It would appear that even Russia has a teaching bill. S. 741-INTRODUCTION OF BILL TO more enlightened policy than t he United The Times urges Congress not only to ap­ States in Its approach to the problem. I un­ propriate the run amount authorized but AUTHORIZE THE ADDITION OF derstand that approximately 60 per cent of also to consider voting additional funds to CERTAIN FEDERAL RECLAMA­ the Russian population have a mother tongue assists these educationally deprived children. TION PROJECTS IN THE PACIFIC other than Russian. In 1938, the Russian Lack of Instruction ln their native tongue NORTHWEST TO PARTICIPATE IN Government reversed Its Insistence that In­ ls a major factor In the average grade level ASSISTANCE FROM THE FEDERAL struction be in Russian and permitted In­ of 7.1 for Mexican-Americans, as compared COLUMBIA RIVER POWER SYSTEM struction in the mother tongue. As a result to 9.0 for Negroes and 12.1 for Anglo-Ameri­ I am told there has been a great increase in cans. Mr. JACKSON. Mr. President, on be- literacy as well as the use of the Russian lan­ Los Angeles schools h ave been making an half of myself and a number of col­ guage. Similar experiences have occurred in Increasing effort at blllngual teaching, with leagues, I introduce, for appropriate Mexico, the Philippines and in Puerto Rico. almost all the money coming out of local reference, a bill to authorize the addi­ In the latter case, the United States at one and state funds. Instruction in Spa.nlsh ls time Insisted that the educational system in now given to more than 6,000 studenits 1n tion of certain Federal reclamation Puerto Rico instruct in English, notwith­ city schools, mostly at the secondary level. projects in the Pacific Northwest to par­ standing the fact that the mother tongue of But money is not the only problem. ticipate in assistance from the Federal the children was Spanish. Mr. Bruce A. Gaar­ The number of Spanish-speaking teachers Columbia River power system, and for der of the Office of Education in testifying ls far less than the demand, a problem that other purposes. Januar y 28, 1969 CONGRESSIONAL RECORD- SENATE 1961 This bill, previously designated as The purpose of this measure is to bring Potentially an outstanding salmon S. 3689, was introduced late in the sec­ 6,300 acres of land in the Kennewick di­ stream, the Touchet will provide a re­ ond session of the 90th Congress. The vision under irrigation. This would be ac­ stored run of anadromous fish when the measure was referred to the Committee complished through appropriate amend­ waterflow, temperature, and water qual­ on Interior and Insular Affairs, but fur­ ments to the act of June 12, 1948, which ity of the stream can be controlled. ther action before an adjournment was authorized the Kennewick division. The The Senate Committee on Interior and not Possible. act of 1948 authorized the Secretary of Insular Affairs, after full hearings and The act of June 14, 1968 (80 Stat. 200) the Interior to construct extra capacity executive consideration in the last Con­ included a provision that reclamation in the division's main canal to provide gress found that the Touchet division is projects authorized after the passage of for future irrigation of approximately a true multi-purpose project that would the act might receive repayment assist­ 7,000 acres. The bill I am introducing advance maximum use of an important ance from net revenues derived from would make use of this extra capacity water resource, and would benefit both the marketing of commercial Power and bring the operating capacity of the the region and the Nation as a whole. through the Federal Columbia River division up to full efficiency. Each feature of the project is physically Power system. This repayment assist­ This project has an extremely high and economically justifiable, both indi­ ance returns to the Treasury the Por­ benefit-to-cost ratio, in excess of 3.5 to 1. vidually and collectively. The project has tion of the costs allocated to the irriga­ While the Kennewick division exten­ the supPort of all Federal, State, and tion purPoses of a project which are in sion is basically an irrigation develop­ local agencies, and of the residents of the excess of the repayment ability of the ment which will be especially suitable area directly affected. irrigation water users. for the production of specialty crops, The VICE PRESIDENT. The bill will There a.re a number of older irriga­ there would also be substantial benefits be received and appropriately referred. tion projects existing in the Pacific to wildlife resources. The bill (S. 743) to authorize the Sec­ Northwest which were authorized and The VICE PRESIDENT. The bill will retary of the Interior to construct, oper­ constructed many years before repay­ be received and appropriately referred. ate, and maintain the Touchet division, ment assistance from Power revenues The bill (S. 742) to amend the act of Walla Walla project, Oregon-Washing­ was being made available. It was origi­ June 12, 1948 (62 Stat. 382), in order to ton, and for other purposes, introduced nally anticipated that the lrrigators provide for the construction, operation, by Mr. Jackson (for himself and Mr. would be able to repay the project costs and maintenance of the Kennewick divi­ MAGNUSON), was received, read twice by within the customary repayment sion extension, Yakima project, Wash­ its title, and referred to the Committee periods. ington, and for other purposes, intro­ on Interior and Insular Affairs. For a variety of reasons, chiefly the duced by Mr. JACKSON (for himself and impact of the depression of the early Mr. MAGNUSON) was received, read twice 1930's, the repayment schedules could S. 744-INTRODUCTION OF BILL TO by its title, and referred to the Com­ PROVIDE FOR BETTER ADMINIS­ not be realized. The water users are mittee on Interior and Insular Affairs. now making payments to the extent of TRATION OF THE NATIONAL PARK their ability, but the repayment con­ SERVICE tracts have been amended to extend the S. 743-INTRODUCTION OF BILL TO Mr. JACKSON. Mr. President, I intro­ repayment periods beyond the 50-year AUTHORIZE THE SECRETARY OF duce, for appropriate reference, a bill to period which is usual. THE INTERIOR TO CONSTRUCT, provide for the better administration of The bill which I am introducing to­ OPERATE, AND MAINTAIN THE the National Park Service and the power day would make repayment assistance TOUCHET DIVISION, WALLA marketing programs of the Department from the Federal Columbia River power WALLA PROJECT, OREGON-WASH­ of the Interior. Joining me in sponsoring system available to these older projects. INGTON, AND FOR OTHER PUR­ this measure are Senators ANDERSON and If this is done, the repayment con­ POSES Moss. tracts can be amended to 50-year terms Mr. President, this measure will enable which will place these projects on a par Mr. JACKSON. Mr. President, I intro­ the National Park Service to retain suf­ with the newer projects which are be­ duce for appropriate reference, on behalf ficient personnel to meet, for the present ing authorized under current Policies. of myself and my colleague, Senator at least, the growing demands of our peo­ The VICE PRESIDENT. The bill will MAGNUSON, a bill to authorize the Secre­ ple for ready admission to and services in be received and appropriately referred. tary of the Interior to construct, operate, our national parks, outdoor recreation The bill (S. 741) to authorize the ad­ and maintain the Touchet division of the areas and historic sites. Use by the public dition of certain Federal reclamation Walla Walla project in Oregon and of such areas requires of course personnel projects in the Pacific Northwest to par­ Washington. This measure passed the for operation, control, protection, and ticipate in assistance from the Federal Senate with amendments in the 90th guidance. Columbia River power system, and for Congress, but no action was taken in Yet, while more and more persons are other purPoses, introduced by Mr. JACK­ the House. using more and more units of our park SON (for himself and other Senators), The outstanding adaptability of this system more and more often, the Park was received, read twice by its title and project to multiple-use water resource Service not only cannot engage addition­ referred to the Committee on Interior development in the southeast area of the al personnel to meet these growing needs, and Insular Affairs. State of Washington, plus the substantial but rather it cannot, under present law, benefits which will accrue to sport and maintain the number of personnel it now commercial fishing in the Pacific North­ has. S. 742-INTRODUCTION OF BILL TO west make it a very desirable project. So, too, with Interior's electric power PROVIDE FOR THE CONSTRUC­ Dayton Dam on the Touchet River marketing agencies. Such agencies in­ TION, OPERATION, AND MAINTE­ will be the principal feature of the proj­ clude the Bonneville Power Administra­ NANCE OF THE KENNEWICK DIVI­ ect. As a result of the control which the tion, Southeastern Power Administra­ SION EXTENSION, YAKIMA PROJ­ dam and reservoir will provide over the tion, Alaska Power Administration, and ECT, WASHINGTON, AND FOR presently unpredictable flow of the the Bureau of Reclamation. Our indus­ OTHER PURPOSES river, 10,000 acres of prime row crop trial development and expanding popu­ farmland will be brought under full ir­ lation require more and more electric Mr. JACKSON. Mr. President, I intro­ rigation. The nearby town of Dayton will energy. The Department of the Interior's duce, for myself and my colleague, Sen­ receive 1,000 acre-feet per year of munic­ programs have a highly important part ator MAGNUSON, a bill to provide for the ipal and industrial water, and the Walla in helping meet these needs. construction, operation, and mainte­ Walla Basin will enjoy the benefits of a Yet these agencies not only are not per­ nance of the Kennewick division exten­ lake ideally suited to the multiple recrea­ mitted to engage additional personnel sion, Yakima project, in the State of tion uses of fishing, boating, swimming, to meet these growing demands; they Washington. This bill is identical to S. picnicking, camping, and waterfowl cannot retain the number they now have. 370 which passed the Senate in the 90th hunting. The project is badly needed as a This situation is the direct result of Congress. Final action on this measure flood control measure for the Touchet the enactment last year of the Revenue was not taken in the House prior to Valley, which has suffered perennial and Expenditure Control Act of 1968 un­ adjournment. losses from spring flooding. der which the executive agencies are not 1962 CONGRESSIONAL RECORD-SENATE January 28, 1969 permitted to engage personnel in excess would impose no new regulation on the zero to 100 percent depending upon the of the number employed on June 30, industry. The authority would be used by amount of market growth and the 1966. I am not questioning the wisdom, producers, that is dairy farmers, and only amount of milk delivered by new pro­ over all, of this law, but I do point out if approved by two-thirds or more par­ ducers. Under these conditions new pro­ that some of its provisions should be ticipating in a referendum. I know of no ducers cannot make firm plans with any waived with respect to certain agencies agricultural legislation that received assurances of participation in the fluid which have direct and growing responsi­ more support among dairy farmers than milk sales of a market except through bilities to the public. the class I base plan which first was purchase of base from a producer dis­ Precedent for such action already has enacted in 1965. This amendment in­ continuing milk production or who may been established for Federal Aviation volved some rather delicate techniques in choose to reduce the size of his dairy Administration Traffic Control Officers, marketing milk. Regretfully the inter­ herd. for the Post Office, the FBI, and the CIA. pretations made on the provisions of the Under the present authority estab­ The VICE PRESIDENT. The bill will bill as passed by Congress proved to be lished producers have no claim on fluid be received and appropriately referred. much too rigid for the rapid changes milk utilization resulting from market The bill CS. 744) to provide for better taking place in the dairy industry. The growth until after allocations are made administration of the National Park authority granted by the 1965 amend­ to new producers. The established pro­ Service and of the electric power market­ ment was use~ in the Puget Sound area ducers complain bitterly that this is un­ ing programs of the Department of the of Washington, and nowhere else. Ex­ fair in light of the tremendous expendi­ Interior, introduced by Mr. JACKSON, (for perience in the Puget Sound market has tures regularly made by established pro­ himself and other Senators), was re­ clearly demonstrated the need for the ducers for the sole purpose of stimulat­ ceived, read twice by its title, and re­ amendments in my bill. ing increased milk consumption through ferred to the Committee on Interior and Because of the rigidities in the 1965 promotion activities and educational Insular Affairs. amendment, the authority has not been programs. used in other milk marketing areas even Fourth. My bill would permit reduc­ though dairy farmers would like to in­ S. 745-INTRODUCTION OF BILL tions in histories of marketing and of stitute class I base plans in many markets fluid milk allocations to producers who RELATING TO CLASS I BASE PLAN throughout the United States. The FOR THE DAIRY INDUSTRY fail to deliver their allocations of fluid amendment to the Agricultural Market­ milk utilization in a prior period of time. Mr. McGOVERN. Mr. President, on ing Agreement Act of 1937, as amended, Such adjustment is precluded by the behalf of myself and the Senator from which is in my bill would pave the way 1965 amendment. Dairy farmers, and Wisconsin Watson, Thomas J., Jr., corp. exec.; b. Day­ 3 relating to the furnishing of relief referred to the Committee on Rules and ton, 0., Jan. 8, 1914; s. Thomas J. and Jean­ assistance to persons affected by the Ni­ Administration, as requested by the nette (Kittridge) W.; grad. Brown U., 1937; gerian civil war. Senator from South Dakota. m. Olive Field Cawley, Dec. 15, 1941; chil­ The VICE PRESIDENT. Without ob­ The resolution and list of cosponsors dren-Thomas J. III, Jeannette, Olive, Lucin- jection, it is so ordered. are as follows: CXV--125---Part 2 1964 CONGRESSIONAL RECORD- SENATE January 28, 1969 S. RES. 68 Mr. Mathias, Mr. McCarthy, Mr. McGee, Mr. (b) The failure of food programs to reach A resolution to continue the Select Commit­ Metcalf, Mr. Mondale, Mr. Montoya, Mr. Moss, many citizens who lack adequate quantity tee on Nutrition and Human Needs Mr. Murphy, Mr. Muskie, Mr. Nelson, Mr. or quality of food; Whereas the Senate has voted unanimously Pastore, Mr. Pell, Mr. Percy, Mr. Prouty, Mr. (c) The means by which this nation can to establish a Select Committee on Nutrition Proxmire, Mr. Randolph, Mr. Rlblcoff, Mr. bring an adequate supply of nutritious food and Human Needs to study the food, medical, Schweiker, Mr. Scott, Mr. Stevens, Mr. Tyd­ and other related necessities to every Amer- and other related basic needs among the ings, Mr. Wllliams of New Jersey, Mr. Yar­ people of the United States: borough, and Mr. Young of Ohio. lc~~ The dlvlslons of responslblllty and Resolved, That the Select Committee on Mr. McGOVERN. Mr. President, the authority within Congress and the Execu­ Nutrition and Human Needs as established tive Branch, including appropriate proce­ resolution would authorize the select dures for Congressional consideration and under Senate resolution 281 ls authorlzed to committee incur expenses through examine, investigate, and make a complete to oversight of coordinated programs to assure study of any and all matters pertaining to December 31, 1969, in a total amount not that every resident of the United States has the lack o! food, medical assistance, and to exceed $250,000. In addition, it would adequate food, medical assistance and other other related necessltles of life and health amend Senate Resolution 281, 90th Con­ basic related necessltles of llfe and health; including, but not limited to such matters as gress, second session, so that the com­ and (a) the extent and causes of hunger and mittee's termination date, July 1, 1969, (e) The degree o! additional Federal ac­ malnutrition in the United States, includ­ is extended for an additional 6 months tion desirable ln these areas. ing educational, health, weUare, and other to December 31, 1969. ACTIVITIES TO DATE matters related to malnutrition: (b) the !all­ The select committee was established The Committee was established by the ure of food programs to reach many cltlzens Senate on July 30, 1968. However, lt did not who lack adequate quantity of !ood; (c) the by the Senate on July 30, 1968. How­ receive authority to employ a staff or expend means by which this Nation can bring an ever, it did not receive authority to em­ funds until October 4, 1968 when the Senate adequate supply of nutritious food and other ploy a staff or expend funds until Oc­ agreed to an authorized budget of $25,000 related necessities to every American: (d) tober 4, 1968, when the Senate agreed to through January 31, 1969. the divisions of responsibllity and authority an authorized budget of $25,000 through This authority enabled the Committee to within Congress and the executive branch, January 31, 1969. take on a staff director and a secretary which including appropriate procedures for con­ were employed in early November. The Com­ gressional consideration and oversight of co­ This limited budget did not enable the mittee was not, however, with lts llmlted ordinated programs to assure that every resi­ select committee to acquire the full com­ budget, able to acquire the addltlonal pro­ dent of the United States ha.11 adequate food, plement of professional and clerical staff fessional and clerical staff necessary to begin medical assistance, and other basic related necessary to begin operations ttntil this !ull operations until this month. It now has necessities of life and health; and (e) the month. The committee, however, now is four professional and four clerical personnel, degree of additional Federal action desirable fully staffed and fully operational. and it ls believed to have acquired the full ln these areas. We began hearings on December 17, staff needed to fulfill lts mandate. SEC. 2. For the purposes of this resolution The Committee began hearings on Decem­ the committee, from February 1, 1969 to De­ 1968. Since that time we have held 10 ber 17, 1968. Since that time lt bas held 10 cember 31, 1969, inclusive, ls authorized: (1) days of hearings. We have not, however, days of hearings. It bas not, however, had an to make such expenditures as it deems advis­ had an opportunity to conduct field opportunity to conduct field hearings and able; (2) to employ upon a temporary basis, hearings and studies or engage in other studies or engage ln other activities which lt technical, clerical, and other assistants and activities which the committee feels are feels are essential to the fulfillment of lts consultants: Provided, That the minority ls essential to the fulfillment of its man­ mandate from the Senate. authorized to select one person for appoint­ date from the Senate. Because the Committee has not been able ment and the person so selected shall be to become fully operative during the first six appointed and his compensation shall be so The extension of the committee's ter­ months of lts one-year duration, and ln or­ fixed that his gross rate shall not be less by mination date from July 1, 1969, to De­ der to assure that it has the time necessary more than $2,400 than the highest gross rate cember 31, 1969, will assure that the to undertake intensive studies ln the areas paid to any other employee; (3) to subpena select committee has the time necessary outllned below, the accompanying resolu­ witnesses and documents; (4) with the prior to undertake intensive studies in the tion provides for an extension of the Com­ consent of the heads of the departments or areas which the Senate has directed it mittee's termlnatlon date from July 1, 1969 agencies concerned, and the Committee on to examine, and will permit the com­ to December 31, 1969. This extension will per­ Rules and Admlnistratlon, to utilize the mit the Committee to operate at a level of reimbursable services, information, facllities, mittee to operate at a level of activity activity necessary to carry out lts mandate and personnel of any of the departments or necessary to carry out its mandate for for the full year originally contemplated agencies of the Government: ( 5) contract the full year originally contemplated when lt was established last July and to with private organizational and individual when it was established last July and to make lts report to the appropriate standing consultants: (6) interview employees of the make its report to the appropriate stand­ committees of the Senate at the end of this Federal, State, and local governments and ing committees of the Senate at the end year. other individuals; and (7) take depositions of this year. ASSISTANCE PROVIDED BY THE LEGISLATIVE IID­ and other testimony. Mr. President, I ask unanimous con­ ERENCE SERVICE OP THE LmRARY OP CON• SEC. 3. (a) The next to last sentence of GRESS Senate resolution 281 (90th Cong., 2d Sess.) sent that a memorandum explaining the mandate of the select committee, its ac­ The Select Committee has already received is amended by striking out "and terminate major staff assistance !rom the Legislative lts actlvlties not later than June 30, 1969." tivities to date, and the activities which Reference Service of the Library of Congress. and lnsertlng in lieu thereof "on or before it contemplates undertaking in the fu­ It wlll continue to use the facllities and per­ June 30, 1969 and December 31, 1969 respec­ ture be printed in the RECORD. sonnel of the Legislative Reference Service as tively and terminate lts activities not later There being no objection, the memo­ it undertakes the activltles set forth tn the than December 31, 1969." randum was ordered to be printed in the next section o! this memorandum. (b) The last sentence of Senate resolution RECORD, as follows: Thus far, at the request of the Chairman 281 (90th Cong., 2d Sess.) is amended by o! the Select Committee the !ollowlng studies striklng out "report" and lnsertlng in lieu MEMORANDUM ACCOMPANYING SENATE RE.so­ and research projects have already been pre­ thereof "reports". LUTION 68 AUTHORIZING EXPENDITURES BY pared and submitted to the Committee. SEc. 4. Expenses of the committee ln carry­ THE SELECT COMMITTEE ON NUTRITION AND 1. "Federal Food Ald Programs" (10 pages): ing out lts functions shall not exceed $250,- HUMAN NEEDS, JANUARY 27, 1969 Thls ls a brief summary of the legislative 000 through December 31, 1969, and shall be The Select Committee on Nutrltlon and authority for the various Federal food ald pald from the contingent fund of the Sen­ Human Needs has reported Senate Resolu­ programs Including a discussion of food aid ate upon vouchers approved by the chairman tion 68 authorizing the Committee to incur policy, and the authority contained ln the of the committee. expenses through December 31, 1969 not to following legislation: exceed $250,000. Section 32, Act of August 24, 1935, as The list of cosponsors of Senate Reso­ The mandate o! the Select Committee, amended, and related leglslatlon. lution 68 is as follows: as set forth in S. Res. 281, 2nd Session, 90th Section 402, Mutual Security Act o! 1954, Mr. McGovern, Mr. Anderson, Mr. Bayh, Congress, is to conduct a complete study as amended. Mr. Boggs, Mr. Brooke, Mr. Burdick, Mr. Byrd or all matters pertaining to the food, medi­ Section 6, National School Lunch Act and of West Vlrglnia, Mr. Case, Mr. Church, Mr. cal and other related basic needs among the related leglslatlon. Cook, Mr. Cranston, Mr. Dodd, Mr. Dole, Mr. American people. Matters within the Com­ Section 416, Agricultural Act o! 1949, as Domlnick, Mr. Eagleton, Mr. Fong, Mr. FUl­ mittee's mandate include: amended, and related legislation. bright, Mr. Goodell, Mr. Gravel, Mr. Harris, (a) The extent and causes o! hunger and Section 407, Agricultural Act of 1949, as IMr. Hart, Mr. Hartke, Mr. Hatfield, Mr. malnutrltlon In the United States, lnclud­ amended. Hughes, Mr. Inouye, Mr. Jackson, Mr. Javlts, lng educational, health, welfare and other Section 202, Agricultural Act o! 1949, as Mr. Kennedy, Mr. Magnuson, Mr. Mansfield, matters related to malnutrltlon; amended. January 28, 1969 CONGRESSIONAL RECORD- SENATE 1965 Section 709, Food and Agriculture Act of lunch, elementary and secondary education, and the implementation of Congressional 1965. pre-school, health services and other nutri­ policy and legislative intent; the pressures Section 379c, Agricultural Adjustment Act tion-related programs. The examination will and influences on policy-ma.king; the rela­ of 1938. be undertaken simultaneously on two levels. tionships between nutrition, agriculture, wel­ Section 210, Agricultural Act of 1956 and First, the Committee expects to conduct fare and other policies and their imple­ Act of August 19, 1958, as amended. field hearings and inspection trips in from mentation. Act of July 3, 1956, as amended, and Act six to twelve states. These field investiga­ 3. The role of the private sector Of August 17, 1961. tions will be supplemented by intensive sur­ The Committee will also assess the present Section 505, Agricultural Act of 1958. veys by private consultants designed to eval­ and possible future roles of the food process­ 2. "Proposal for Study by the Senate Select uate state and local administration of fed­ ing industry and other private for-profit and Committee on Nutrition and Human Needs" eral programs. not-for-profit organizations in meeting nu­ (23 pages): This study proposal was prepared These consultant studies will focus upon with the guidance of the Committee sta.fl' in a limited number of states and encompass, trition and other basic needs, including order to assure that the research expertise among other topics an analysis of the source Federal regulation o! and restraints on the of the Legislative Reference Service ls avail­ of food and other related services available private sector. This study would cover the able to the Committee as it determines how to the poor; the nature, quality and location followlng topics: the fortification of existing to carry out Its mandate from the Senate. of State and local program administration; foods and development o! new foods to meet This study Includes proposals in connection the relationships among programs and ad­ the nutrition needs of the poor, including with the following matters: ministering agencies; participation levels and existing efforts of the food Industry alone (a) Identification of low-income people. certification procedures; local impediments and in cooperation with AID and USDA; the (b) Existing sources of help for the poor to participation; the extent and nature of packaging, advertising, and marketing of including income maintenance, Federal food the needs among the local population and present foods and the effect of food industry programs, health and medical services, train­ the extent to which such needs are met and practices upon the poor; political and eco­ ing and employment services and the inter­ how; and breakdowns between the Federal, nomic restraints upon food manufacturers; relationships of programs for the poor. State and local administering agencies par­ Federal regulations affecting food fortifica­ (c) A section on health and nutrition ticularly with respect to the implementation tion; and the future development of local discussing the need for study of the con­ of Federal guidelines, and including dUfer­ food processing businesses and agricultural sequences of food insufficiency, minimum ences in perspectives a.bout policies and cooperatives and the extent to which such nutritional requirements, reasons for nutri­ program intent. endeavors have and can meet the needs of low tional insufficiency, the detection, diagnosis Second, and concurrently, the Committee income groups. and correction of malnutrition, nutrition sta.fl' will work closely with the staffs of Fed­ 4. Needs of particular population groups education, nutrition research, food nutri­ eral departments and agencies, Including the The Committee will also focus upon the tion and the private sector. Departments of Agriculture and Health, Edu­ special nutrition-related problems of partic­ {d) Administrative organization alterna­ cation and Welfare, the Office of Economic ular groups of people such as Indians, mi­ tives raising issues with respect to the ad­ Opportunity, and the Bureau of Indian Af­ grants, Spanish-surnamed Americans, the ministration of public assistance programs on fairs, and with the Legislative Reference elderly children and infants and pregnant the State and Federal levels and the ad­ Service of the Library of Congress which will women. These studies w1ll encompass an ministration of food programs including food assist the Committee In compiling informa­ evaluation of current programs to meet the stamps, school lunch and other food assist­ tion and in the conduct of specific research needs of such groups and the participation ance. projects. These activities will encompass, of such groups in general assistance pro­ 3. "Legislative Background of Federal Food among other topics an examination of exist­ grams. It will also attempt to assess the need Aid Programs" (55 pages): This study has ing laws, regulations and guidelines with a for special assistance for such persons. provided the Committee with a complete and view toward determination of Federal re­ Each of these areas of study will be under­ detailed legislative history of the followlng strictions on local participation, certification, taken through a combination of staff, con­ programs: administration, etc., and the extent to which sultant, administrative agency and Library Section 32, Act of August 24, 1935 and Federal red tape impedes local administra­ o! Congress research and through public related legislation; Amendments to section tion; an analysis of State plans on file with hearings. Through these efforts, the Commit­ 32. the Federal agency, the restrictions imposed tee expects to develop recommendations for Section 402, Mutual Security Act of 1954 by States on program participation and ad­ a. coordinated program or programs to assure as a.mended. ministration and Federal sanctions of or that the nutritional needs of our citizens a.re National School Lunch Act and related impediments to such restrictions; a review met. legislation. of Federal monitoring of local programs, in­ The accompanying budget for the Select National School Lunch Act. cluding the extent to which the Federal ad­ Committee on Nutrition and Human Needs The Colmer Committee. ministering agency does or does not have requests a total expenditure authority of Section 416, Agricultural Act of 1949. knowledge necessary to evaluate State and $250,000 for the eleven-month period from Section 416 Amendments. local program administration; comparisons February l, 1969 through December 31, 1969. Special Milk Programs. of program participation and characteristics The Committee believes that this is the mini­ Section 709 of the Agricultural Act of o! participants and an evaluation of Federal mum that is essential for the support of an 1965. efforts to assure that particular needs are adequate staff and !or the conduct of the ac­ Food Stamp Program. being met through the provision of the right tivities described above. The budget does not The Child Nutrition Act of 1966. services. Thls would Include analyses o! in­ contemplate an increase in the number o! In addition, the Committee sta.fl' has re­ come levels and other standard o! living professional or clerical personnel presently quested and received many other studies by characteristics o! participants, and non-par­ employed. It does, however, allow for a sub­ the Legislative Reference Service which are ticipants, and the extent to which Federal stantial sum which the Committee believes generally available to the public. programs a.re designed and implemented to necessary to undertake research projects and meet the needs o! such persons. intensive field surveys under contra.ct with The Sta.fl' of the Select Committee will con­ These activities, together with further pub­ tinue to work very closely with and use the private full and part-time consultants. lic hearings In Washington are expected to Without this requested expenditure au­ services of the Legislative Reference Serv­ provide the Committee with evaluative ma­ ice. The LRS will be particularly helpful in thority, and without an extension of the pulling together current and past research terials which will form the basis of Its assess­ Committee's termination date to December studies on matters relating to nutrition and ment o! present nutrition-related programs. 31, 1969, the Committee does not feel that basic human needs. Summaries will be pre­ 2. The making and implementation of Federal it can adequately undertake those activities pared by LRS on all available research from policy which it considers necessary for the fulfill­ time to time as specific requests a.re made Related to administrative evaluation ment o! its mandate from the Senate. by the Committee. studies is a study of policy-ma.king In the Mr. SCOTT. Mr. President, I am co­ FUTURE ACTIVITIES Executive and Legislative branches of the sponsor of the resolution to extend for The Committee believes the fulfillment of Federal government. 6 months the Select Committee on Nu­ its mission requires that it have the resources This study will encompass such matters as the coordination of and relationships among trition and Human Needs. This select and time necessary to undertake the activi­ committee was established by unanimous ties described below. Federal agencies and programs, including the relationships between foreign and domestic vote and has a mandate to study the 1. Examination and evaluation of Federal food assistance efforts and between domestic problems of hunger and malnutrition. It programs food assistance efforts and the development is also committed to recommending ways Intensive surveys and analyses of food of space and combat foods, and the use of to as.sure that the nutritional needs of all assistance and other nutrition-related pro­ lnteragency committees and councils; federal our citizens are met. grams and activities of the Federal govern­ research activities and the use o! informa­ in ment are already In the planning stage. These tion gained from research Including mecha­ The legislation, which was approved studies will emphasize the Federal, State and nisms for locating hunger and malnutrition; July, provided 1 year for the committee local administrative machinery for the deliv­ the setting o! program and budget priorities to accomplish this. Operating funds for it ery of food and related services through the among and for human needs programs; the were not authorized until October 1968. food stamp, commodity distribution, school development of guidelines and regulations Therefore, it was mid-December before 1966 CONGRESSIONAL RECORD-SENATE January 28, 1969 hearings could begin. During these past These low participation rates are not in cooperation with local government, the 2 months, the committee has taken testi­ adequate to meet basic nutritional needs. private sector, educational institutions, mony from the Secretaries of the Depart­ In addition, of the over 23 million pov­ and voluntary organizations. These, and ment.6 of Agriculture and Health, Edu­ erty-level citizens, 14 million are receiv­ other methods, will be explored by the cation, and Welfare. The Office of Eco­ ing no food assistance. committee. nomic Opportunity also provided wit­ Mr. President, this alone would give us I am gravely concerned about this sit­ nesses. Experts have reported on health, all cause for grave concern. However, we uation. During the 90th Congress, I au­ medicine, nutrition, and malnutrition, have seen, through films shown to the thored and introduced an amendment to disease, vitamin deficiency, and child committee, and heard, from distin­ the agriculture appropriation bill which welfare. guished witnesses, of the lack of ade­ was offered to eliminate certain re­ During my own testimony in support of quate food. Most recently, on January 22, straints on what the Secretary of Agri­ the creation of the Select Committee on the committee received the preliminary culture alleged to be a legal disability Nutrition and Human Needs, before the results of the first nutrition survey ever to use funds which he already had for Subcommittee on Employment, Man­ conducted in the United States. Those food programs. Furthermore, in my effort power, and Poverty, I stated that we findings, to say the least, were shocking. to draw the attention of colleagues to would go look throughout America and Dr. Arnold Schaefer, who is conducting the problem, I arranged two special may very well find it a shocking place, the survey, stated that studies to date showings of the CBS documentary, but that we do not intend to leave what clearly indicate that there is malnutri­ "Hunger in America," for the Members we find undisturbed or without change tion in our Nation occurring in an un­ of Congress and their staffs. In addi­ for the better. expectedly large proportion of the survey tion, I joined in sponsoring Senate Reso­ Therefore, I wholeheartedly support sample population. lution 281, which established the select extending the Committee on Nutrition To hear, that, in the wealthiest Nation committee. and Human Needs to December 31, 1969, in the world, there is high vitamin defi­ Because I believe that food and health so that we have sufficient time to take a ciency, growth retardation falling below needs are related to income support and penetrating look at human needs, and national average among children, and welfare systems, I plan to introduce leg­ decide on some changes. severe dental problems among children islation providing Federal standards of Mr. JAVITS. Mr. President, there has over 10 years old is indeed horrifying. As welfare payments and for increased aid been included in the RECORD a resolution Dr. Schaefer stated: for certain States unable otherwise to for the extension of the Select Commit­ It is unreasonable in an affluent society to meet national standards. tee on Nutrition and Human Needs, and discover such signs as those seen to date. Finally, Mr. President, I have outlined a request which seeks authorization for it, Every American should, and must, be only a few of the many logs that are of which I am a cosponsor. concerned, when problems encountered creating a logjam of malnutrition and Mr. President, today, Senator GEORGE in our Nation's poverty groups seem to are thus holding back the great streams McGOVERN, chairman of the Select Com­ be very similar to those encountered in of good health, mental ability, and mittee on Nutrition and Human Needs, developing nations of the world. human productivity from millions of has introduced a resolution which au­ This already morbid situation is made American citizens. With this in mind, I thorizes that committee to incur ex­ just so much more intolerable, when we cosponsor Sena.tor McGovERN's resolu­ pense through December of this year nat realize that it has a most serious effect, tion, which will extend the committee's to exceed $250,000. As the ranking minor­ and consequences on our millions of chil­ life, to contribute to the objective that ity member of this committee, I cospon­ dren who suffer from malnutrition, hid­ hunger and malnutrition will forever be sor that resolution. den hunger and related illnesses, due to eradicated from our midst. The mandate of the committee, as set lack of an adequate and nutritious diet. Mr. WILLIAMS of New Jersey. Mr. forth in Senate Resolution 281, second Our children are the hope of our Na­ President, last week in an address to the session, 90th Congress, is to conduct a tion. The committee heard testimony Senate, I mentioned the reddened hair complete study of all matters relating to today that by the time a child reaches 4 which announces death for Biafran chil­ the food, medical and other related basic years old, some 90 percent of his brain dren. It is not only Biafran children who needs among the American people. The growth has occurred. It is during this suffer this ghastly protein deficiency dis­ original termination date for the com­ critical period that the brain is most ease. Recent studies indicate that Amer­ mittee's study is July 1 of this year. How­ vulnerable to nutrient deficiencies with ican children suffer from the same ever, the committee was unable to ac­ the likelihood of irrev~rsible changes diesase and similar outrageous malnu­ quire the professional and clerical staff being produced that remain throughout trition. While the condition in Biafra necessary to begin full operations until life. blights our consciences, this condition in last month due to a limited budget. Of equal concern is the fact that some the United States blights our sensibili­ The committee hearings, which be­ of the above changes can begin occur­ ties more deeply. Let us consider those gan December 17, have produced evi­ ring before birth if the mother suffers forgotten people who die by inches be­ dence to a shocking degree that there is, from vitamin deficiencies. It has been cause of famine. indeed, hunger and malnutrition in the estimated that over 750,000 women a year These people are poor. There are 27 United States which affects millions of deliver a child without comprehensive million poor in the United States but 20 our fellow citizens. In order fully to ex­ prenatal care. Where such women have million of them are handicapped because amine the causes and effects of this seri­ severe vitamin deficiencies or related ill­ they are under 16, over 60, or physically ous situation, and its relationship to ex­ nesses, the child never has a chance. Mr. or mentally hampered. These 20 million isting Federal food and health programs, President, hunger for food is greater poor have difficulty obtaining food. Yet the committee needs to conduct field than hunger for knowledge. Who knows only 6 million poor or nearly poor per­ hearings and engage in other activities how much has already been lost to our sons participate in family food programs. which are essential to the fulfillment of country in mental ability and productiv­ Many of the hungry are children. Two to its Senate mandate. ity due to the inhibiting mental and four million poor children should get as­ Testimony before the committee has physical effects of prolonged malnutri­ sistance under the national school lunch revealed that, at present, nutrition ac­ tion-both to parent and child? program but they do not. tivities in the Federal Government have All of the above data has been revealed While Secretary Freeman made out­ led toward neither the effective gather­ in testimony before the Select Commit­ standing and meritorious changes to ing nor application of knowledge in this tee on Nutrition and Human Needs. Our help millions of persons heretofore un - area. There has been division of respon­ work is just beginning. We must not only helped, he had indicated that more must sibility among congressional committees, find solutions and answers to the prob­ still be accomplished. He stated that 9.5 with fragmentary coordination and over­ lems and questions concerning hunger million children now attend schools lapping activities. and malnutrition; but we must deter­ where meal service is not available and We have also learned that, in 41 States, mine how best the resources of the Fed­ pointed out that these children are the less than 50 percent of the hard-core eral Government through its food and ones who would most benefit from such poor-families of four with less than a health programs, can be mobilized to programs. Over 1 million of these chil­ $2,200 annual income-participate in find a permanent solution to this shock­ dren are potentially eligible for free or food assistance programs in those areas. ing problem. Such mobilization must be reduced price lunches. This means that January 28, 1969 CONGRESSIONAL RECORD- SENATE 1967 a great percentage of these children are overlook the lonely aged person or the SENATE RESOLUTION 70-RESOLU­ hungry. Hungry children cannot be ex­ forgotten transient. Let us consider the TION TO PAY A GRATUITY TO pected to learn. needs of all our citizens before hope is LULA M. TOWLES-REPORT OF A What happens during lunch to these starved and trust famished. COMMITTEE millions of hungry children? Children Mr. RANDOLPH. Mr. President, I am Mr. JORDAN of North Carolina, from can be very cruel. Poor, hungry children privileged to cosponsor the Senate reso­ the Committee on Rules and Adminis­ without money for food must sufier the lution requesting extension of the Select tration, reported the following original indignity of making up excuses to other Committee on Nutrition and Human resolution (S. Res. 70) ; which was placed children for not eating. They must suf­ Needs through December 31, 1969, and on the calendar: fer the accusations that they do not have requesting $250,000 for its operations any money for lunch. They must hun­ during this period. S . RES. 70 grily observe their classmates eat; or Last July the Senate unanimously Resolved, That the Secretary of the Senate hereby ls aut horized and directed to pay, subserviently cull the remains of finished voted for the establishment of this select from the cont ingent fund of the Senate, to classmates' lunches. committee. This was a significant step Lula M. Towles, widow of George A. Towles, Hunger can cause brain damage and in the effort to better identify and ana­ an employee of the Senate at the time of retarded growth rates, but let us not for­ lyze the problems of hunger and mal­ his death, a sum equal to one year's com­ get the damage to the spirit caused by nutrition. However, the committee was pensation at the rate he was receiving by law this hunger and poverty. Inferiority feel­ not authorized to expend funds and em­ at the time of his death, said sum to be ings as well as physical destruction are ploy staff until October, and its spending considered inclusive of funeral expenses and the real prices of our inaction. Culture authority was severely limited. It is es­ all other allowances. and society tries to harness and inject sential that the committee continue its restraints and values into children's wild vital work and complete its mission. energy-restraints considered essential SENATE RESOLUTION 71-RESOLU­ There is no doubt that hunger and TION TO PAY A GRATUITY TO for the mature adult. But we cannot, if malnutrition exist too prevalently in this we are mature adults deserving the ad­ LOUIS C. STREETS-REPORT OF country; clear evidence confirms this. A COMMITTEE jective enlightened, permit hunger and However, the extent of the problem has malnutrition to continue. caused considerable controversy in re­ Mr. JORDAN of North Carolina, from I am cosponsoring the distinguished cent months. It is my feeling that the the Committee on Rules and Administra­ Senator from South Dakota's resolution committee's proposed field hearings and tion, reported the following original res­ because we must know the problem in inspection trips will be meaningful in olution (S. Res. 71) ; which was placed detail before we can adequately solve it. resolving this controversy and in bring­ on the calendar: The resolution would enable us to know ing about a coordination of existing food S . RES. 71 the problem. Basic need would be iden­ programs. I will urge and support ade­ Resolved, That the Secretary of the Sen­ tified. An individual satisfies primary quate funding of these endeavors. ate hereby ls authorized and directed to pay, needs before seeking more complex ones Surveys indicate that many of our from the contingent fund of the Senate, to such as security, meaning, and fulfill­ schoolchildren are slow learners--suffer­ Louis C. Streets, widower of Clementine E. ment. Although elaborate psychological Streets, an employee of the Architect of the ing a degree of mental retardation from Capitol assigned to duty in the Senate Office theories embellish this view, they only inadequate nutrition. Others suffer from restate what appears obvious to the com­ Buildings at the time of her death, a sum vitamin deficiencies and stunted growth. equal to six months' compensation at the monsense. One must have food, shelter, The U.S. Public Health Service is con­ rate she wa.s receiving by law at the time of and clothing, the basic necessities by any ducting an extensive survey to determine her death, said sum to be considered inclu­ definition. the extent, causes, and effects of hunger sive of funeral expenses and all other allow­ This study is a first step toward an un­ and malnutrition. Last week the select ances. derstanding of the minimum essentials committee received a preliminary report which an individual in our society re­ of this survey from the Chief of Nutri­ quires. The average expenditure for food SENATE RESOLUTION 72-RESOLU­ tion at the U.S. Center for Control of TION TO PAY A GRATUITY TO in the United States is $1,500. The aver­ Chronic Diseases. The findings seem to age migrant laborer only earns $1,200. ELEANOR S. WHELAN-REPORT OF reinforce those of previous studies con­ A COMMITTEE Should we be surprised that some people cerning the prevalence of physical and are underfed when they earn less per mental retardation, disease, and de­ Mr. JORDAN of North Carolina, from year than the average person spends on formity. the Committee on Rules and Administra­ food? It has been estimated that millions of tion, reported the following original res­ This situation is somewhat like the Americans suffer from the effects of mal­ olution (S. Res. 72) ; which was placed childhood nonsense game where two nutriiton. This is shameful in our land on the calendar: people discuss life-What is life? A mag­ of prosperity and advanced technology. S . RES. 72 azine. How much does it cost? Ten cents. We are aware of the Federal and State Resolved, That the Secretary of the Senate I only have a nickel. That is tough. What programs to provide food for low-income hereby ls authorized and directed to pay, is tough? Life. What is life? A magazine, families. However, this has not been ade­ from the contingent fund of the Senate, to and so forth. Hunger is one of the ways Eleanor S. Whelan, sister of Joseph M. Whe­ quate. One of the aims of the select com­ lan, an employee of the Architect of the Capi­ of life for the poor. The dominant so­ mittee is to determine where there have ciety seems to say, eat food to stay tol assigned to duty in the Senate Office been failures and to recommend correc­ Buildings at the time of his death, a sum healthy, or buy food stamps. The poor tive action. equal to six months' compensation at the ask how much do they cost? The rich rate he was receiving by law at the time of say $1,500. The poor say they only have h is death, said sum to be considered inclu­ $1,200. The dominant society answers SENATE RESOLUTION 69-RESOLU­ sive of funeral expenses and au other al­ that that is tough. What is tough? Pov­ lowances. erty, hunger, sickness, ignorance, unem­ TION TO MAKE PUBLIC CERTAIN ployment-that vicious cycle of basic RECORDS OF PROCEEDINGS OF needs which we really do not know SENATE TAKEN IN EXECUTIVE SENATE RESOLUTION 73-RESOLU­ enough about so that the poor can afford SESSION IN 1898 TION AUTHORIZING THE PRINT­ life. We are a rich country, we do know. Mr. KENNEDY submitted a resolution ING OF THE 69TH ANNUAL RE­ Five years ago there were 151,720 beauty cs. Res. 69 ) to make public certain rec­ PORT OF THE NATIONAL SOCIETY shops. Last year, $30 billion was spent ords of proceedings of the Senate taken OF THE DAUGHTERS OF THE on war in Asia. Today we are very close in executive session in 1898, which was AMERICAN REVOLUTION AS A considered and agreed to. SENATE DOCUMENT-REPORT OF to putting a man on the moon. Let us A COMMITTEE (S. REPT. NO. 5) redirect a very small part of our wealth (See the above resolution printed in to the understanding of the hunger and full when submitted by Mr. KENNEDY, Mr. JORDAN of North Carolina, from needs of the infant, the pregnant moth­ which appears under a separate head­ the Committee on Rules and Administra­ er, and the migrant laborer. Let us not ing.) tion, reported an original resolution CS. 1968 CONGRESSIONAL RECORD- SENATE January 28, 1969

Res. 73 ), and submitted a report ther eon, mittee to make a full and complete study were ordered to be printed in the REcoRD, which report was ordered to be printed and Investigation of any and all m.atters per­ taining to problems and opportunities of old­ as follows: and the resolution was placed on the er people, Including but not limlted to, prob­ McGILL, NEV. calendar, as follows: DEAR SENATOa CANNON: I'm a cattle lems and opportunities of maintaining rancher in eastern Nevada and I would like S. RES. 73 health, of assuring adequate income, of find­ you to lodge an official protest with Secre­ Resolved, That the sixty-ninth annual re­ ing employment, of engaging in productive tary Orville Freeman and Secretary Stewart port of the National Society of the Daughters and rewarding activity, of securing proper housing, and, when necessary, of obtaining Udall against this proposed grazing fee in­ of the American Revolution for the year crease and their proposal to change the pres­ ended March 1, 1966, be printed, with an care or assistance. No proposed legislation ent fee formula based on the price of live­ illustration, as a Senate document. shall be referred to such committee, and such committee shall not h ave power to re­ stock. port by bill or otherwise have legislative Ju­ I would like the Public Land Law Review risdiction. Commission to complete its report before any SENATE RESOLUTION 74-RESOLU­ changes are made. TION PROVIDING FOR MEMBERS SEC. 3. The said committee, or any duly au­ thorized subcommittee thereof, is authorized We are caught In a cost-price squeeze and ON THE PART OF THE SENATE OF to sit and act at such places and times dur­ according to a study made by the Depart­ THE JOINT COMMITTEE ON ing the sessions, recesses, and adjourned pe­ ment of Agriculture Statistical Reporting PRINTING AND THE JOINT COM­ riods of the Senate, to require by subpena or Service we are receiving only a 2 % return on MITTEE OF CONGRESS ON THE otherwise the attendance of such witnesses our investment. LIBRARY-REPORT OF A COM­ and the production of such books, papers, I! we are burdened with new fee increases MITTEE and documents, to a.dmlnister such oaths, to it will mean financial disaster for a lot of us. take such testimony, to procure such print­ The Bureau of Land Management under Mr. JORDAN of North Carolina, from ing and binding, and to make such expendi­ the Taylor Grazing Act of 1934 was intended the Committee on Rules and Administra­ tures as it deems advisable. to stabilize the livestock Industry and not as tion, reported the following original SEC. 4. A m ajority of the members of the a revenue measure. resolution CS. Res. 74) ; which was placed committee or any subcommittee thereof shall Please do what you can to keep the present on the calendar: constitute a quorum for the transaction of fee formula based on the price of livestock business, except that a lesser number, to be which is the only fair way. The price of cattle S . RES. 74 fixed by the committee, shall constitute a has remained a.bout the same for the last 15 Resolved, That the following-named Mem­ quorum !or the purpose of taking sworn tes­ to 20 years yet we have had ever increasing bers be, and they are hereby, elected mem­ timony. operating costs. bers of the following joint committees of SEc. 5. For purposes of th1s resolution, the It seems only fair that the grazing fees Congress: committee is authorized (1) to employ on a remain the same as the market value of the Joint Committee on Printing: Mr. Jordan, temporary basis from February 1, 1969, livestock. of North Carolina; Mr. Allen, of Alabama; through January 31, 1970, such technical, The livestock Industry and other industries and Mr. Scott, of Pennsylvania. clerical, or other a.ssistants, experts, and con­ directly dependent on them need your help. Joint Committee of Congress on the sultant.a as it deems advisable: Provid.ed, Thank you. Library: Mr. Jordan, of North Carolina; Mr. That the minority is authorized to select one Yours truly, Pell, of Rhode Island; Mr. Cannon, of person for appointment, and the person so JOHN C. PEsclO. Nevada; Mr. cooper, of Kentucky; and Mr. selected shall be appointed and his compen­ Thurmond, of South Carolina. sation shall be so fixed that bis gross rate CARLIN, NEV., shall not be less by more than $2,400 than January 2, 1969. the highest gross rate paid to any other em­ Hon. HOWARD CANNON, SENATE RESOLUTION 75-RESOLU­ ployee; and (2) with the prior consent of Senate Office Building, TION AUTHORIZING THE REVI­ the executive department or agency con­ Washington, D.C. SION AND PRINTING OF THE SEN­ cerned and the Committee on Rules and Ad­ DEAR Sm: Thank you very much !or sup­ ATE MANUAL FOR USE DURING ministration, to employ on a reimbursable porting the livestock industry in its struggle basis such executive branch personnel as it against the proposed grazing fee hike. THE 91ST CONGRESS-REPORT OF deems advisable. A COMMITI'EE The cost-price squeeze is so great now that SEC. 6. The expenses of the committee, even a small increase would jeopardize our Mr. JORDAN of North Carolina, from which shall not exceed $214,000 from Febru­ livelihood. ary l, 1969, through January 31, 1970, shall the Committee on Rules and Administra­ be paid from the contingent fund of the Sen­ None of us wants to give up our business, tion, reported the following original ate upon vouchers approved by the chairman but many would be forced to do just that resolution CS. Res. 75 ) ; which was placed or the committee. 11 this increase in tees goes into effect. on the calendar: SEC. 7. The committee shall report the re­ Please continue to do all in your power to stop this devastating proposal. S. REs. 75 sults of its study and investigation, together with such recommendations as it may deem Sincerely, Resolved, That the Committee on Rules Mr. and Mrs. TONY SESTANOVICH. and Administration be, and it is hereby di­ advisable, to the Senate at the earliest prac­ rected to prepare a revised edition of the ticable date, but not later than January 31, Senate Rules and Manual for the use of the 1970. The committee shall cease to exist at JIGGS, NEV., Ninety-first Congress, that said Rules and the close of business on January 31, 1970. January 4, 1969. Manual shall be printed as a Senate docu­ Hon. HOWARD W. CANNON, ment, and that two thousand additional Senate Chambers, copies shall be printed and bound, of which FEES FOR GRAZING LIVESTOCK ON Washington, D.C. one thousand copies shall be !or the use of PUBLIC LANDS DEAR SENATOR: Thank you tor the support you have given the livestock people in op­ the Senate, five hundred and fifty copies Mr. CANNON. Mr. President, in the shall be !or the use of the Committee on posing the raise in grazing fees. We do feel Rules and Administration, and the remaining face of urgent pleas and dire warnings this raise is premature inasmuch as the fee four hundred and fifty copies shall be bound of disaster for the livestock industry in study is not complete. in full morocco and tagged as to contents the West, the Bureau of Land Manage­ Unfortunately the general public ls un­ and delivered as may be directed by the com­ ment and the Forest Service have de­ aware of the tremendous investment many mittee. cided to raise livestock grazing fees on people have in the public lands in the way public lands. of fencing, reseeding, developing water and general conservation practices. The tee is I feel this is a terrible mistake, as SENATE RESOLUTION 7~RESOLU­ actually a very small part of what livestock these increases will hurt an industry that people pay to use and improve the lands !or TION TO CONTINUE THE SPECIAL is in poor economic shape even now. COMMITTEE ON AGING the generations to come. I am calling upon the new administra­ We are pleased to have the understanding Mr. WILLIAMS of New Jersey submit­ tion to rescind the nrder at this time, and of our representatives in Washington. ted the following resolution CS. Res. 76) ; to wait until the Public Land Law Re­ Very truly yours, which was referred to the Committee on view Commission completes its report to BARNES RANCHF.S, INC., Rules and Administration: the American people in 1970, before fur­ By FERN I. BARNES. ther action is taken on grazing fees. s. RBs. 76 ELKO,NEV., Res.olved, That the Special Committee on I ask unanimous consent that a few December 11, 1968. Aging, establlsbed by Senate Resolution 33, of the many letters I have received from Senator HOWARD CANNON, Eighty-seventh Congress, agreed to on Febru­ Nevada livestockmen pointing up the Senate Office Building, ary 13, 1961, as amended and supplemented, problem be printed at this point in the Washtngton, D .C. ls hereby extended through January 31, 1970. RECORD. DEAR SENATOR CANNON: It came as a very SEc. 2. It shall be the duty ot such com- There being no objection, the letters big shock to me when I beard of the proposed January 28, 1969 CONGRESSIONAL RECORD- SENATE 1969 lncrea.5e on gra.zing fees on both the B.L.M. Mr. BYRD of West Virginia. Mr. Pres­ withdrawn a number of her vessels from and the Forest Service land. ident, I suggest the absence of a quorum. the Mediterranean Basin. Her potential This proposed increase amounts to 400 %. This increase will put many livestock people The PRESIDING OFFICER. The clerk for returning them nevertheless remains, out of business as the Public Domain Forage will call the roll. and this means the United States and and carrying capacity is not anywhere near The assistance legislative clerk pro­ NATO cannot relax vigilance. The Medi­ this amount of money. ceeded to call the roll. terranean fleet t.o be created can well I strongly am opposed to this and do not Mr. DffiKSEN. Mr. President, I ask serve as an indication that vigilance will believe it is right for the people ln the live­ unanimous consent that the order for not be relaxed. stock Industry to continue to be asked to pay an Increase in gra.zlng fees. the quorum call be rescinded. We go only so far in establishing the We are well aware as to the original intent The PRESIDING OFFICER. Without force at this point because of a number of the Taylor Grazing Act and we strongly objection, it is so ordered. of problems-both internal and external. urge the use of the original policy where the Within the alliance, there are political Ora.zing Act was figured on the price of the questions which account for the reluc­ livestock. ESTABLISHMENT OF NATO MEDI­ tance of some members to participate; Sincerely yours, TERRANEAN FLEET AND DIS­ there are economic limitations on others, ALEx HEGUY & SONS, and there are rivalries among certain of Jog W. HEGUY. CUSSION OF MARITIME DIS­ CONTINGENCY FORCE FOR THE the NATO members which could disrupt RENO, NEV., ATLANTIC the fleet. Externally, there are fears December 13, 1968. among some members that such a force Senator HOWARD W. CANNON, Mr. SPONG. Mr. President, Soviet might involve all NATO members in an U.S. Senate, seapower has reached a formidable stage. unwanted or undesirable situation. Cer­ WasMngton, D.C.: Today, the operates the tainly, this possibility exists. But a simi­ Regarding Increases of Bureau of Land largest submarine fleet in the world and lar pitfall surrounds most military oper­ Management rates in Nevada we believe that Nevada livestock producers can not economi­ the foremost fishing fleet. Its oceano­ ations-both offensive and defensive­ cally afford the proposed Increases if the graphic research vessels outnumber all demanding that we avoid the lure of necessity of Increases arises from the In­ the other oceanographic research ves­ hasty, unwarranted action and internal creased budget required by BLM staff. We sels throughout the world. And, its mer­ bickering. And, not t.o create the force urge that you Introduce legislation cutting chant marine fleet contains a greater denies a means of expanding coopera­ the size of the BLM staff. Please keep us ad­ percentage of modem ships than the ion in NATO, of shoring up the alliance's vised of the status of this matter cordially. similar fleets of the Western nations. southern :flank, and of deterring aggres­ STUART B. WEBB, President, Nevada National Because of the totalitarian nature of sion in one of the world's busiest water­ Bank of Commerce. the Soviet Government, the vessels gen­ ways. erally associated with civilian activities Second, officials at NATO's Atlantic BLUE EAGLE RANCH, can easily be converted t.o military use; headquarters in Norfolk, Va.-Saclant­ Tonopah, Nev., December 26, 1968. and the entire maritime operation can have been working on defense plans for Senator HowARD CANNON, be engaged for military and political the North Atlantic which would include Senate Office Building, purposes. Washington, D.C. use of what has been referred t.o as a DEAR SENATOR CANNON : I received quite a Overall, the strength of the U.S. Navy NATO maritime contingency force. Ear­ jolt on November 15th when I heard of the is unsurpassed. But, the Soviet naval ad­ lier today, diplomatic sources in Brussels proposed grazing fee increase. I am ln the vances represent new and growing chal­ confirmed agreement on plans for such a process of buying a range cow operation. lenges. force. Judging by past records I figured the ranch In responding t.o these challenges, two Although it is premature t.o discuss could pay for Itself and provide a living for recent developments within the North actual details of the contingency force, my family and myself. If this becomes law, everything that we have put into this outfit Atlantic Treaty Organization can prove reports have suggested that as many as will be lost. of great significance. These are estab­ 50 vessels might be trained for rapid as­ We graze our cattle on very poor range at lishment of a NATO Mediterranean :fleet sembly and deployment should a crisis its best. There is no way the Department of and discussion of a maritime contin­ arise in the North Atlantic. Such a fleet Agriculture Statistical Reporting Service gency force for the Atlantic. would undoubtedly serve as another could compare the cost or return of operat­ First, the Mediterranean fleet. means of elevating the Western naval ing on this type range to that privately position. I would also like to note that owned. As if this Isn't enough, they propose The NATO Defense Ministers, who met to change the grazing fee formula leaving the January 16, 1969, in Brussels, agreed to Saclant is particularly qualified t.o de­ door open for as many increases as it takes establishment of a limited multinational velop plans for the contingency :fleet; to bring grazing on public lands to an end. fleet for the Mediterranean. The fleet, as first, because primary responsibility for I certainly appreciate the fine work you envisioned by the Defense Ministers, NATO activities in the Atlantic rests have done 1n the past. Once again we need would operate much as the Matchmaker here and, second, because of Saclant's your help now. I hope you wm lodge an of­ experience with Stanavforlant. ficial protest with the Secretary of Agricul­ Squadron did in the Atlantic prior to the ture and the Secretary of Interior in our be­ creation of Stanavforlant, the perma­ Both the Mediterranean :fleet and the half. nent NATO naval fleet for the Atlantic. contingency force concept represent the Thank you very much. It would come together periodically for multinational approach in our defense Sincerely, exercises and maneuvers, which would efforts-an approach preferable t.o the CARL J. HANKS. symbolize the unity of NATO and its unilateral one, both from an economic determination to deter aggression. The and political standpoint. Such an ap­ ELKO CHAMBER OF CoMKERCE, proach has an appeal the advantage of Elko, Nev., December 12, 1968. force would be strictly defensive in na­ Hon. HOWARD CANNON, ture, designed not to threaten any na­ which should not be underestimated. U.S. Senate Building, tion, but t.o help secure all Mediterra­ For these reasons I believe both the Washington, D .C. nean nations and to serve as a warning Mediterranean fleet and a NATO mari­ DEAR SENATOR CANNON: On February 2, to any would-be aggressor. Initially, time contingency force could be valuable 1968 we wrote you regarding the grazing fee Greece, Turkey, Italy, Great Britain, and additions to NATO and Western naval formula change proposed by the U.S. Forest the United States would probably partic­ operations. Service. Due to the late action of the Forest ipate in the Mediterranean fleet. Service and Bureau of Land Management 1n changing this fee structure we again urge Although creation of a continuously that you do everything In your power to fore­ existing force along the lines of Stanav­ EXECUTIVE PROCEEDINGS OF THE stall any action untU the Land Law Review forlant would be preferable, I am pleased SENATE IN 1898 MADE PUBLIC Commission has completed Its study and pre­ with this development. On April 22, 1968, sented its case to Congress. The Impact of the after visiting Stanavforlant, I endorsed Mr. KENNEDY. Mr. President, I send proposed changes on the ranchers, businesses the idea of a comparable Mediterranean t.o the desk a resolution and ask for its and local economy is quite obvious and of immediate consideration. vital concern to everyone In Elko County. fleet, citing the Soviet naval buildup in Respectfully yours, the area and the need for a symbol of The PRESIDING OFFICER. The reso­ Dr. JOHN H. MARTIN, Jr., NATO political and military solidarity. lution will be stated. Vice President. Since that time, the Soviet Union has The legislative clerk read as follows: 1970 CONGRESSIONAL RECORD- SENATE January 28, 1969 S. R.Es. 69 question that the Navy inquiry relates to, I want to say with emphasis that, in R esolv ed, That any records ot the proceed­ I point out that a NaVY court of inquiry my opinion, it would be highly impracti­ ings of the executive sessions of the Senate has the authority to take testimony on cal-it should not happen-for the com­ for April 26, May 18, and May 31, 1898 (see a question of that kind and to make find­ mittee to proceed now into hearings on references in Congressional Record, 66th Con­ In it gress, second session, volume 31, part 6, pages ings on it. fact, is its duty. the investigation-and that is just the 4244, 4994, and 6362) now in the custody ot However, the fact that such testimony rudimentary part of the study-until the National Archives, be made available to is taken on that question does not imply after the NaVY has completed its in­ the public for examination. that any person is guilty or even accused quiry and has made its :findings, as I of a wrongful act. would expect it to do very soon there­ The PRESIDING OFFICER. Is there It is my understanding that the au­ after. objection to the present consideration of thority of the NaVY court of inquiry is Certainly, I want to say that our com­ the resolution? limited to an examination of only the mittee is not wanting to influence the There being no objection, the resolu­ aspects of the Pueblo case as are wholly Navy and its findings as a result of its tion (S. Res. 69 ) was considered and within the jurisdiction of the NaVY. I proceedings, or other conclusions in any agreed to. assume the Navy officers in charge con­ way. The NaVY has a direct, primary re­ vened the court of inquiry because they sponsibility in the field of its inquiry. GRANT TO ILLINOIS CENTRAL believed it to be the proper procedure. I hope and believe that all the Con­ QUESTIONED This is their prerogative and responsi­ gress will be patient. I believe all in­ Mr. WILLIAMS of Delaware. Mr. bility. They are acting through a sense formed people will be patient. I hope the President, I ask unanimous consent to of duty, I feel sure. people of the country as a whole will in­ have printed in the RECORD a copy of a However, after studying all the infor­ form themselves as to just what the sit­ telegram I sent to Hon. John A. Volpe, mation material to the overall issue, as uation is and await accordingly. Secretary of Transportation, in connec­ well as the available facts that pertain There is no intimation from what I tion with the $25 million grant to the just to the Na VY, I think it is entirely pos­ have said here as to what our committee Illinois Central. sible that because its jurisdiction is lim­ feels about what the NaVY should do. I There being no objection, the telegram ited, the Navy court of inquiry will not be believe in putting responsibility where re­ was ordered to be printed in the RECORD, able to investigate all phases of the sponsibility belongs. I have no idea what, as follows: Pueblo incident that should be examined. according to the Navy's standards, its January 25, 1969. Not until the full facts are known conclusions will be. That is our position. Hon. JOHN A. VOLPE, about all the relevant circumstances that I hope that is clear. Secretary of Transportation, existed, and events which took place be­ Mr. HOLLAND. Mr. President, will the Washi ngton, D .C.: fore, during, and after the seizure of the Senator yield? The twenty-five million-dollar grant to Pueblo, will it be possible to ascertain Mr. STENNIS. I yield. Illinois Central at same time they were nego­ the reasons the ship was lost and take Mr. HOLLAND. First, I congratulate tiating a $9o,000 position for Allan Boyd, the protective measures against another such heartily the distinguished Senator from Director of Transportation, raises serious Mississippi upon the stand he has taken. questions of propriety. Strongly recommend incident. that this grant be held up pending thorough Although the Pueblo is a Navy ship, the It is, of course, right that the Navy court investigation. responsibility for the policies and con­ of inquiry should proceed in a deliberate JOHNJ. Wn.LIAMS, ditions under which its officers and men way to fulfill its duty to the Navy, and U.S. Senator. served were shared by other authorities under the NaVY precedents and NaVY jurisdiction. I am happy, however, that Mr. BYRD of West Virginia. Mr. Presi­ at higher levels in the Department of Defense. the Senator, speaking as chairman of dent, I suggest the absence of a quorum. the Armed Services Committee of the The PRESIDING OFFICER. The clerk On the basis of facts now being devel­ oped, it might be that the Senate Armed Senate, has, in effect, given notice to the will call the roll. Defense Department and to the NaVY The bill clerk proceeded to call the roll. Services Committee would find it nec­ essary to determine the facts of the case Department that his able committee, Mr. STENNIS. Mr. President, I ask which he heads so capably, does stand unanimous consent that the order for the as to is own responsibility, as well as the NaVY and other authorities in the De­ ready, if it feels conditions justify it, quorum call be rescinded. partment of Defense. to make a committee inquiry and a sen­ The PRESIDING OFFICER. Without Even though we wanted to begin an atorial inquiry into this matter at the objection, it is so ordered. investigation immediately, it is imprac­ completion of the hearings now under­ tical and virtually impossible to conduct way. U.S.S. "PUEBLO" more than one investigation of this in­ Mr. President, I say this because I cident at a time. Witnesses are required think that while the Navy Department Mr. STENNIS. Mr. President, the NaVY for the NaVY hearing now in progress on must proceed under NaVY rules, regula­ is now conducting a court of inquiry into the west coast. Also, it would not be tion, precedents, and traditions, the Sen­ the loss of the Pueblo. The duty of this proper to interfere with the hearing now ate represents the people of the United court of inquiry is to determine the facts in progresss. States. The Senator knows, and every of the incident as they pertain to the It may be that when the NaVY court Senator knows, that there is great con­ NaVY, and on the basis of those facts, to of inquiry is completed, much of that fusion in the minds of the people of the recommend to the Chief of Naval Opera­ testimony would be useful in other hear­ United States right now about this en­ tions what action should be taken. The ings on the issue. tire incident. I think it was a salutary court of inquiry is not a trial court, but If, after this Navy court of inquiry is thing for the Senator to sa.y, as he has a proceeding more in the nature of a completed, it appears that further in­ today upon the floor of the Senate, that grand jury. vestigation is necessary, the Senate his committee is watching this matter The court of inquiry may, depending Armed Services Committee will proceed. deliberately and without prejudging of upon the facts, recommend several ac­ Should the committee proceed, it will any sort, is holding itself ready, and is tions ranging from commendation to not be limited to the proof before nor the giving notice to the NaVY authorities and court-martial. It has been reported by findings by the NaVY court. to the authorities of the Defense De­ the press that one of the matters being Whatever action is taken by the com­ partment, that, if in its judgment it feels considered by the court of inquiry is mittee should be taken as soon as possible it must go into it after the naval court whether or not any NaVY personnel, par­ after the NaVY court of inquiry is com­ of inquiry has completed its proceedings, ticularly the commander of the U.S.S. pleted. I have, therefore, informed the his committee will do just that. Pueblo, violated Navy orders or were Secretary of Defense that it is likely the I thank the Senator. derelict in their duty to the extent that Senate Armed Services Committee will Mr. STENNIS. I thank the Senator the disobedience of orders, or the dere­ desire to make a study of the Pueblo in­ very much. liction of duty, permitted the ship to be cident. I also requested that the witnesses I am glad to get the response of the taken by hostile forces. not be transferred or allowed to accept Senator from Florida. I believe his re­ Without commenting on the merits of other commitments which would prevent sponse will be similar to that of almost the case as to that question, or as to any their being readily available. every Member after Senators really get January 28, 1969 CONGRESSIONAL RECORD- SENATE 1971 into the facts and see this matter in its Union to talk about all the great prob­ rates and trends than with the fact that lems of disarmament. To escalate fur­ there seem to be Increasingly large sections true perspective. of his city where he cannot walk safely even Let me say to the American people ther by producing more missiles and in dayllght, much less at night, and that it that it is time to be patient about this more warheads and then spend bllllons Is now dangerous In many communities tor matter and withhold conclusions, and for anti-ballistic-missile systems to de­ bus drivers to carry cash or for taxis to pick let these procedures go forth in the reg­ fend against the added weapons created, up fares In certain parts of town after dark. ular way. However it comes out, I think is a ridiculous thing to do. We must make . . . It has also prompted many citizens to the Navy ought to continue to have much every effort to reach agreement. arm themselves for self-protection. responsibility with regard to its officers. The Washington Star in an editorial Mr. President, I have not yet seen If we tried to shift that responsibility last Friday, January 24, had some very the report in question, but from the and have it another way, we would de­ sensible things to say abOut both Mr. Pearson-Anderson account it appears to stroy a great department and a great Clifford's valedictory statement and the be a document that all of us would do tradition, the Navy. need to deescalate the arms race. I ask well to read. Mr. HOLLAND. Mr. President, will the unanimous consent that it be printed in I ask unanimous consent that the Senator yield further? the RECORD. Pearson-Anderson column be printed in Mr. STENNIS. I yield. CLIFFORD' S VALEDICTION the RECORD. Mr. HOLLAND. Mr. President, I am There is a three-course dinner for thought There being no objection, the column so happy that the Senator has em­ in Clark Clifford's first and final "posture" was ordered to be printed in the phasized the matter of public patience statement on the Pentagon's view of the world military situation. The interest is com­ RECORD as follows: and senatorial patience. The Senator [From the Washington Post, Jan. 28, 1969] from Florida has taken exactly that pounded by the Soviet offer for disarmament negotiations that greeted the Nixon adminis­ THE WASHINGTON MERRY-Go-ROUND: REPORT course to answer the myriad of letters tration as It assumed office. he has received from disturbed citizens, SHOWS VIOLENCE GRIPPING UNITED STATES By the end of 1969, Clifford said, the U.S. (By Drew Pearson and Jack Anderson) mostly from the State of Florida but missile superiority w1ll have eroded. The some from elsewhere. Soviets will have caught up. Both sides wm Probably the most sobering document I think it is incumbent upon all of have more than 1,000 ICBMs, ready to fl.re President Nixon has found on his desk 1a a us to allow the naval court of inquiry from protected, underground shelters. In ad­ "progress report" on violence 1n America, dition, he said, the USSR is "moving vig­ depleting the country in the grip of a fury to complete its duties in the fullest and orously" to catch the United States in sea­ that has erupted on the campuses and ex­ most deliberate way and then decide, based missiles. ploded In the ghettos, that stalks the streets after we have seen the record and after It was not Clifford's purpose to throw a and may even lie in wait for himself be­ we have seen the judgment of the court scare Into the American public with his rev­ hind some dark window. of inquiry, what should be done. I am elation that the missile gap ls closing. The unpubll&hed report, prepared by the glad the Senator has voiced the neces­ The outgoing secretary's point was that National Commission on the Causes and Pre­ sity for patience, because I think the the United States and Russia both have a vention of Violence, raises more questions hard choice to make. They must either move than It answers. But seven task forces are public needs to be patient just now. Into a new and limitless round of arms devel­ stlll digging for the root ca.uses of some of I thank the Senator for the wise state­ opment. Or they can try to negotiate a llmlt the most turbulent yea.rs in American history. ment he has made. to the costly and deadly madness. In the fast five years, the report points out: Mr. STENNIS. I thank the Senator. The Soviets have greeted the new admin­ 1. "239 violent urban outbursts, involving As far as the Navy and the Defense istration with an offer to talk about all as­ 200,000 participants, have resulted In nearly Department are concerned, I have not pects of disarmament, including interconti­ 8,000 Injuries and 191 deaths, as well as really discussed this matter with them. nental missiles and anti-missile systems. hundreds of millions of dollars in property "When the Nixon government 1a ready to damage." I did not want to try to influence them, 2. 370 civil rights demonstrations and 80 and I did not want them, frankly, to try sit down at the negotiating table, we are ready" a Kremlin spokesman said. counter-demonstrations have occurred, In­ to influence me at this time. I have ob­ There shoUld be no delay. The first order volving more than a m1lllon participants. tained the facts as I could. I think the of business shoUld be the prompt rat1flca.tlon 3. Hundreds of student demonstrations public will be fully informed in time. of the non-proliferation treaty. And as soon "have resulted In seizure of university faclll­ I yield the floor. as It can possibly be arranged, the United tles, police Intervention, riot, property dam­ States shoUld press, with all appropriate cau­ age and even death." tion, for full-scale arms 1Ja.lks with the 4. Antiwar protests "have involved some CLARK CLIFFORD'S POSTURE Soviets. 700,000 participants in cities and on campuses STATEMENT Both nations need relief from the economic throughout the country." burden of another upward spiral of the arms The Commission also cited the soaring Mr. PROXMIRE. Mr. President, as all race. The world needs some lifting of the crime statistics, particularly the homicide thinking men and women know, there is oppressive nuclear cloud that presently covers rate, noting: "A dramatic contrast may be now a very clear choice for the United Its horizon. This period of change and of made between Manhattan Island, with a States and the Soviet Union to make. The renewed beginning may be the best oppor­ population of 1.7 million, which has more tunity for real progress. homicides per year than all of England and two nations can either make serious at­ Wales with a population of 49 mllllon. And tempts to limit their military arsenals or New York's homicide rates are by no means they can continue to escalate the arms THE PEARSON-ANDERSON COLUMN the highest among American cities." race. Then, each country would place TELLS OF CRIME AND VIOLENCE Concludes the Commission: "The ellmina­ new burdens on its people and on its tlon of all violence in a free society ls Im­ economy, would defer expenditures to Mr. BYRD of West Virginia. Mr. Pres­ possible. But the better control of lllegltlmate meet critical domestic needs, and move ident, in today's Washington Post, col­ violence In our democratic society is an ur­ the hands on the doomsday clock closer umnists Drew Pearson and Jack Ander­ gent Imperative and one within our means to midnight as each side raised the ante son reveal the awesome dimensions of to accomplish." in Even before he was sworn In, President a gigantic war of nerves. the wave of crime and violence which Nixon had decided to devote his first 100 No one has painted out the problems threatens our Republic. days to cooling the passions that have In­ we face and the choices we must make In the column, Pearson and Anderson flamed the country. He will deliberately avoid more clearly than has former Secretary discuss the contents of a hitherto un­ controversy and confllct. In the language of Clark Clifford in the "pasture" statement published report by the National Com­ the streets, he has told intimates he intends he made about the Pentagon's view of the mission on the Causes and Prevention of to "cool it." military situation. Violence. The magnitude of the headache Mr. Nixon There are constructive steps we can has inherited ls summarized in the report on The report catalogs the statistical violence which the Commission submitted to take to meet these overriding problems. evidence of the corruptness which threat­ President Johnson on Jan. 9. It is abundantly clear that the Senate ens to undermine our free society. We have obtained a bootleg copy of the should ratify the nonproliferation treaty Importantly, however, Pearson and report, which covers all forms of American now. It has been too long delayed and Anderson quote the repart as stating: violence from political assassinations to should be acted upan promptly. The Intricacies of crime statistics have highway accidents. Here are some highlights: It is also clear that now is the time to little meaning for the average citizen.... He "The Commission has heard testimony make arrangements with the Soviet appears less Impressed with numbers and from student protest leaders who defend the 1972 CONGRESSIONAL RECORD- SENATE January 28, 1969 legitimacy or violent law-breaking, and who To my way of thinking a mass public question. The Air Force said that Mr. urge that rightness or the ends they seek execution can only be described as a Fitzgerald did have such authority and and 'lllegitlmacy• of the present social order senseless act of barbarism. that it was proper for him to testify entitle them to oppose both prosecution and punishment. It has also heard a distin­ But let us see this sorrowful event in on any C-5 cost overrun. guished academician say that from the its even larger setting, as did U.N. Secre­ But shortly after the date of his testi­ standpoint of the social order it is unwise tary U Thant when he said: mony, on November 25, the Air Force to prosecute and punish every act ot civil Mass trials and executions are always to be said that a September 6, 1968, notice that disobedience." deplored, and are particularly abhorrent and his status was changed from schedule A "Those who would violate valid laws to win dangerous when they are carried out in such to that of the career service was a mis­ rights they are now denied must stop to a way as to inflame the emotions ot the take. It was called a "computer error." consider how those rights can be preserved in populace. Still later, a memorandum was written a society where their opponent.a are free to follow the same course. One must ask The Middle East hovers at the edge from the administrative assistant to the whether any society can survive it its mem­ of full-scale war-a war that could be­ Secretary of the Air Force, Mr. John bers rely on genuine disobedience or the law come so broad and bitter as to encom­ Lang, to the Secretary detailing three as a source ot political energy." pass the great and small nations of the ways "which could result in Mr. Fitz­ "Those who believe in the rule ot law can­ world. gerald's departure." One of these was not rest content with condemning those Clearly there must be a peace treaty suggested but "not recommended since lt whose conscience commands them to defy that acknowledges the permanent na­ is rather underhanded," the memo read. the law. Law Itself must be responsible to tionhood of Israel, her territorial bound­ As the Star rightly points out, this social change and to the correction ot in­ issue transcends even the problem of Mr. justice. Our legal system has not yet corrected aries and other rights. the Injustices our society Inflicts on minority Mr. President, genuine peace-the Fitzgerald's future employment. That is groups ... It respect tor law ls to sustain the United Nations fervent call for a "last­ important, and it is of great consequence social order, we need to sharpen the ablllty o! ing peace"-depends on a political set­ both to him and to us all. the law to clear the paths to peaceful tlement. The issue at stake is the right of Con­ change." Unfortunately the day when fruitful gress to perform its constitutional func­ "In a democratic society where ultimate negotiations and such a settlement will tion. If an employee is penalized for giv­ power resides in the people, access to the help give the world security and much ing testimony when asked by an appro­ mass media is essential tor groups desiring priate committee of Congress, then our peaceful social change. It Important, dis­ needed calm is made more distant with contented segments of our society are de­ the event of cruel acts such as that of system will be unable to function as it nied the right to be heard, subsequent re­ the Iraqi Government yesterday in should. sort to violence by these groups may per­ Baghdad's Liberation Square. I hope that very soon we will receive haps be expected. Mr. SCOTT. Mr. President, I rise today assurances that Mr. Fitzgerald will not "The key to much of the violence In our and join the Senator from Connecticut be fired nor penalized. That would be one society seems to lie with the young. Our to deplore the public execution in Iraq way for the Pentagon to reassure Con­ youth account for an ever-increasing per­ of 14 persons accused of spying for gress that its right to ask for and receive centage of the population. The thrust of Israel. appropriate information will not be much collective violence--on the campus, abridged. in the ghettos, in the streets-ls provided Mass secret trials, followed by public by our young people. executions, can only inflame emotions I ask unanimous consent that the very "The Intricacies of crime statistics have and decrease the opportunity for peace fine editorial on the Fitzgerald case, pub­ little meaning for the average citizen . • . and stability in an already troubled re­ lished in the Washington Star on Friday, He appears less Impressed with numbers and gion of the world. The explosive situ­ January 24, 1969, be printed in the rates and trends than with the tact that ation in the Middle East is all too well RECORD. there seem to be increasingly large sections known. President Nixon in his press con­ [From the Washington Star, Jan. 24, 1969) ot his city where he cannot walk safely even ference yesterday referred to the need to in daylight, much less at night, and that THE FrrzGERALD AFFAm it is now dangerous In many communities defuse that situation. Harold Brown, then Air Force Secretary, for bus drivers to carry cash or for taxis I agree with Secretary of State Wil­ received a most extraordinary memorandum to pick up !ares In certain parts of town af­ liam Rogers who declared: from his administrative assistant the other ter dark . . • It has also prompted many The spectacle of mass public executions ls day. It described three alternative techniques citizens to arm themselves for self-protec­ repugnant to the conscience ot the world. for fl.ring A. Ernest Fitzgerald, the efficiency tion." expert whose testimony to a Senate subcom­ "Ot the automobile accidents that account Such actions are abhorrent to the con­ mittee on the burgeoning costs ot the C--5A tor 50,000 deaths each year in the United science of civilized mankind and detri­ super transport plane has embarrassed the States, there is evidence that a substantial mental to the efforts of men of good will Air Force. number result from the psychological and to reach a Just and peaceful accord. The Pentagon has long been noted for its physiological effects of alcohol upon driv­ back-stabbing and infighting. But we had In the past, Arab guerrilla raids into always supposed that these things were ac­ ers, as wen as from other !actors in our cul­ Israel have posed a continuing threat to ture and In the psychology o! driving that complished with some finesse. Thus we are promote and urge to violence." Israel's very existence. This latest trag­ more than a bit taken aback that such deli­ edy represents a most dangerous escala­ cate business as how best to fire an employee tion. would be written up in a memorandum. May we also assume that the author made extra MASS EXECUTION copies for the files? THE FTI'ZGERALD AFFAIR The Air Force's bureaucratic ham-handed­ Mr. RIBICOFF. Mr. President, yester­ ness ls unfortunate. But the substantive is­ day in a rublic square the Iraqi Govern­ Mr. PROXMIRE. Mr. President, last sue ls rather more serious. The apparent plot ment hanged 14 men. Nine of the num­ Friday the Washington Star editorialized to fire an efficiency expert tor his candor ber were Jews. about the case of Mr. A. E. Fitzgerald. On represents grossly Improper behavior on the It is difficult to express with words the November 13, 1968, Mr. Fitzgerald testi­ part of the public officials involved. More­ shocks and abhorrence that grip civil­ fied before the Subcommittee on Econ­ over, it hardly speaks well for the m111tary's ized men when they learn of such an in­ efficiency in administering its whale-sized omy in Government of the Joint Eco­ chunk of the federal budget. human act. We must forcefully condemn nomic Committee, of which I am chair­ The new Secretary of Defense should call this deed of the Iraqi Government. And man. on the carpet those individuals responsible if, as Israeli Premier Eshkol said, "the He testified at our request. He had no tor this regrettable Incident. sole and only crime of these nine mar­ prepared statemeni; but answered ques­ tyrs consists in their being Jews," then tions which the committee put to him. we must bring to the attention of the He was asked about the cost overrun of PROPOSED EEC TAX ON SOYBEAN world the Iraqi Government's policy of the C-5 airplane. He testified t.hat it was OIL AND MEAL: A THREAT TO THE heightened discrimination against Iraqi $2 billion more than was the original U.S. FARMER AND THE NATION Jews during recent years. estimate. Mr. FULBRIGHT. Mr. President, I Secretary of State Rogers correctly At that point in the hearing and be­ have always believed in the benefits of the stated: fore he answered the question, I asked a reciprocal trade program initiated in 1934 The spectacle ot mass public executions is representative of the Air Force if Mr. by Secretary of State Cordell Hull. I still repugnant to the oonscience of the world. Fitzgerald was authorized to answer the believe in that !Program for several im- January 28, 1969 CONGRESSIONAL RECORD-SENATE 1973 portant reasons. When trade between their import quota and licensing ar­ during the now famed "chicken war" a nations is as free as possible, industries rangements, to subsidize their exports, few years ago. Unfortunately, section 252 are made stronger and more competitive, and to impose special border taxes on of the Trade Expansion Act and the the consumer is given a wider choice of imports--as we dismantled our tariff chicken war have not been a sufficient products, m onopolies are thwarted, and barriers. warning to these countries. Therefore, the general welfare and incomes of peo­ Looking at what we did then from to­ I am afraid we may have to invoke the ple are improved in all the trading na­ day's vantage point, one might say the provisions of that section again unless tions. All this can take place, however, only mistake we made was in assuming the EEC rejects the proposed tax on soy­ only if trade barriers by all nations are that those countries would always be bean products. reduced on a reciprocal basis. If one down and unable to repay us, while we And, Mr. President, retaliation on a country reduces its trade barriers uni­ would always be so rich and powerful $500 million scale will make the so-called laterally while others increase theirs, that we would never need to be repaid. chicken war-which involved only about domestic industries, employees, and This has not been the case. $22 million-look, in comparison, like a farmers in the country which reduces its It is this fundamental change in eco­ skirmish between quarreling children. barriers are injured. nomic relationships which has been re­ Hopefully, our European friends will Mr. President, I am sure that the 9lst sponsible for the views of many in this see reason, as many of us did, when they Congress will express its concern over body with regard to our troop commit­ threatened to retaliate against us if we the impact of foreign goods in our mar­ ments in Europe, and many other mat­ imposed mandatory import quotas. We kets. Last year, more than 90 Senators ters incident to the commercial rela­ did not act, and now, they must realize sponsored or cosponsored bills to impose tions between the United States and that the shoe is on the other foot. To mandatory quotas on imported products. Europe. avoid retaliation, they must not act. Already a number of quota bills have While tariffs have been reduced by all Mr. President, I urge the President, been introduced in the 91st Congress. the developed countries, other barriers and the departments of Government re­ During the import quota hearings be­ which are even more protective have sponsible for maintaining healthY trade fore the Senate Finance Committee, Ex­ been allowed to stay, and in some cases relationships throughout the world, to ecutive branch spokesmen told us that have grown while these tariff reductions use all the powers available to them to foreign countries not only would retaliate took place. One such barrier which cuts prevent a decision by the EEC which if we passed those bills, but also would into our own exports is the variable levy would threaten our volume of soybean have the right to retaliate under the Gen­ system of the European economic com­ exports. eral Agreements on Tariffs and Trade. munity. I ask unanimous consent that there be Therefore, those countries which threat­ The EEC common agricultural policy, printed in the RECORD the texts of com­ ened to retaliate against us should which is being progressively extended munications I have received from Mr. realize that we, in turn, cannot condone over wider area-s of foreign products, is L. C. Carter,Mr.RodneyL.Borum,and actions on their part which adversely af­ aimed principally at making the com­ former Secretary of Agriculture Orville fect our commerce. Trade must be a two­ munity self-sufficient in agriculture. In L.Freeman. way street. order to make this policy effective, the There being no objection, the com­ In this regard, Mr. President, a most EEC has adopted variable import levies munications were ordered to be printed disturbing situation has developed which and export subsidies, which restrict im­ in the RECORD, as follows: could affect my State severely and a ports and cause unfair competition with ARKANSAS GRAIN CORP., number of other States with high levels our exports to markets in other coun­ Stuttgart, Ark., December 19, 1968. of agricultural production. In addition, tries. The latest proposed proliferation of Hon. J. w. F'ULBRIGHT, Mr. President, the situation affects the Senate Office Bui ldi ng, the community's protective agricultural Wash i n gton, D .C.: entire Nation, because it threatens a $500 policies endangers one of the principal We are seriously concerned relative to the million export market which is critical agricultural products in America--soy­ imposition of taxes on soybean meal and soy­ in our struggle to maintain a surplus in beans. In 1968, our soybean, vegetable bean-oil in the EEC. The proposed tax will our balance of payments. I am referring, oil, and meal exports to the European direct ly affect Arkansas farm income. Buyers Mr. President, to the European Economic in these countries are major customers o! Community's proposed internal tax on Common Market totaled $457 million­ Arkansas Grain Corporation. While d1.sgulsed soybean meal and oil. This $60 a ton tax one third of our agricultural exports to as a "domestic internal tax" on these com­ that market. A loss of that market would modities, it a.mounts to the same as an im· on soybean oil would constitute an effec­ hurt the U.S. balance of payments se­ port tariff. For complete exple.na.tion contact tive tariff barrier of over 50 percent, F. Molner, Soybean Council of America, which would cut severely our exports of verely. I frankly do not understand how we Washington, D.C. Respectfully request your soybeans. The proposed tax is without immediate attention to this matter which doubt a protectionist measure on the part can afford to maintain our six divisions is so vital to Arkansas soybean prOducers. of the European community, to which we in Europe in the face of European poli­ L . C. CARTER, must react. cies which cut off the main sources of Executi ve Vi ce President and It is appropriate to review our trade foreign exchange earnings. General Manager. policies since World War II, and our re­ Mr. President, to condone such an ac­ lationships with the European countries. tion by the European community would U .S. DEPARTMENT OF CoMMERCE, We all know the poverty and devastation not be in the interest of free trade. If BUSINESS AND DEFENSE SERVICES which World War II wrought on Eu­ we do not react, but turn the other ADMINISTRATION, cheek, other countries who wish to safe­ Washtngton, D.C., January 7, 1969. ro~these nations were penniless after Hon. J . w. Fm.BRIGHT, the war, with neither gold nor produc­ guard their domestic interests at our ex­ U.S. Senate, tive facilities to supply their needs. We pense will be encouraged to increase Washington, D .C. responded generously with Marshall plan their own protectionism. The result of a DEAR SENATOR F'ULBRIGHT: This is in reply and other economic assistance amount­ failure to react to the proposed agricul­ to your letter o! December 26, 1968 to sec­ ing to over $20 billion, much of which tural policy of the European community retary Smith concerning the possible im­ was on a grant basis. We also adopted a would be to invite protectionism on a position of a domestic tax on soybean meal grand scale by others. This is not fair to and oil by Northern European Nations. deliberate policy of lowering our tariffs Apparently the concern of your constitu­ without demanding reciprocity from American farmers, industries, and work­ ents relates to a proposal !or a tax on cer­ those war-torn countries. International ers; and it must be avoided. tain domestic and imported olls, meals and agreements, such as the General Agree­ Mr. President, the adverse effects of ollbearlng materials consumed in the Eu· ments on Tariffs and Trade were con­ the EEC agricultural policy have been ropean Common Market. cluded, with certain built-in biases to aid recognized by the Congress as far back This proposal was made by Vice President as 1962. When the Trade Expansion Act Sicco Mansholdt of the Commission o! the European economic recovery. Among European Communities to the December 10 these biases were the GATT provisions of 1962 was being considered, a provision meeting of the Council o! Ministers of the regarding import quotas, subsidies, and was included in that act which warned European Economic Community. The par­ the waiver from the most-favored-na­ the foreign countries that we would not ticular problem that the proposed tax is de­ tion obligation in the case of common condone an increase in their nontariff signed to alleviate is the huge butter surplus markets. The European countries and barriers, including variable import levies. which has arisen as a result of the Common Japan were allowed to retain and expand Remedies under that act were invoked Agricultural Policy. 1974 CONGRESSIONAL RECORD- SENATE January 28, 1969 The United States Government ha& fol­ PROPOSED ECONOMIC POLICIES OF Mr. McCracken, who served as a member lowed these developments closely and has THE NIXON ADMINISTRATION of the Councu of Economic Advisers from expressed its concern regarding the possible 1956 to 1959 and has just left an economics effect on American trade. On December 16, Mr. JAVITS. Mr. President, as Chair­ professorship at the University of Michigan, United States Ambassador J . Robert Schaet­ man of President Nixon's Council of said that his views on this issue "shift a bit, zel presented an aide memolre on the sub­ Economic Advisers, Paul McCracken will depending upon whether I am an academic ject to Vice President Mansholdt. So far no have a key role in setting the new ad­ or in Washington." specific proposal for taxes on fats and oils ministration's economic policies. It is, "Back in the mid-fifties,'' he said, "I be­ has been agreed on by the Commission for gan to think that the Federal Reserve ought submission to the Council. therefore, of the greatest importance to to be under the Administration. As I look We recognize the important consequences Congress and the people to know what back over the last 10 years, I find the mis­ that a tax of this sort could have for Amer­ Dr. McCracken's views are on such vital takes have not been inherent in the organiza­ ican soybean producers, processors and for­ issues as inflation, unemployment, inter­ tional structure eign traders and we will continue to give est rates, the balance of payments, wage­ "The Administration and the Federal Re­ the matter our careful attention. price guidelines, and other such issues. serve, I think, have to be in close communi­ The Departments of State and Agriculture, Congress will have to await the ap­ cation. They have to be in a position to which have primary jurisdiction in this mat­ explain what they are doing, and the Ad­ ter, are following developments closely and pearance of Dr. McCracken before the ministration has to be in a position to ex­ the United States Government ls taking Joint Economic Committee on Febru­ plain what It thinks ought to be done." every opportunity to present its very strong ary 17 for a full statement of his views KEY PROBLEMS GIVEN views on the matter to the European Eco­ and the proposed economic policies of nomic community. the Nixon administration. Mr. McCracken said that he believed the Sincerely, most important economic probleins before In the meantime, and as a good indi­ the nation were bringing inflation under RODNEY L. BORUM, cation of his outlook, I invite the atten­ Administrator. control without causing unacceptably high tion of the Senate to a long interview levels of unemployment, bringing the bal­ DEPARTMENT OF AGRICULTURE, with Dr. McCracken, published in the ance of international payments more se­ Washington, D.C., January 17, 1969. New York Times on January 24. While curely into surplus and "bringing the Hon. J. w. FULBRIGHT, the interview took place on January 9, disadvantaged groups into the mainstream U.S.Senate, it was authorized for publication by Dr. of national life." Washington, D.C. McCracken on January 21 and can there­ He warned, however, against what he DEAR SENATOR FULBRIGHT: Thank you for fore be taken as an authentic representa­ called "economic hypochondrlacs"-Govern­ your letter of January 14 expressing concern ment officials with excessive concern over about the Common Market proposal to im­ tion of his views. ever/ small "wiggle" in the business statis­ pose a consumption tax on oilseeds and oil­ It is clear from this interview that tics, and attempts to offset such small trends. seed products. Vegetable oils would be taxed Dr. McCracken approaches economic That kind of policy, he said, can produce $60 per metric ton and oilcake and meal $30 policy issues with an open mind, with­ a "careening course" for the economy. per metric ton. out ideological bias. On other issues, Mr. McCracken said: I feel that this matter of continued open I ask unanimous consent that the in­ "Interest rates do not have to be so high access to the European Community markets terview be printed in the RECORD. as they are now, although he sees forces in for our soybeans and soybean products ls There being no objection, the inter­ the economy that will tend to keep them one of the most important trade problems to somewhat higher than their Jong-term his­ confront American farmers since I became view was ordered to be printed in the torical levels. Among these forces are the Secretary of Agriculture. If this proposed RECORD, as follows: enormous demand for capital from the hous­ action by the Community should take place, McCRACKEN HAILS ECONOMY'S TREND: CALLS ing industry to support a needed level of I can think of nothing that would do more SURPLUS IN JOHNSON'S FINAL BUDGET RIGHT home construction of one and three-quarter to turn back the clock on the effort we have MOVE To HELP CONTROL INFLATION million to two milllon annually in the near made to improve access to foreign markets (By Eileen Shanahan) future. for our farm products. WASHINGTON, January 23.-The man who President Kennedy's proposal to give the My views are fully shared by responsible President authority to change tax rates with officials of this Administration and the U.S. Will head President Nixon's CouncU of Eco­ nomic Advisors believes that the basic eco­ narrow limits-for purposes of stimulating Government has formally told the officials of restraining the economy-ls politically of the Community that their proposed action nomic policy of the Government---after some serious mistakes-has been left heading in impractical. But he finds interesting an would reduce sharply the Community's im­ idea recently put forth by his colleague-to­ ports of oilseeds and oilseed products and the right direction by the Johnson Adminis­ tration. be on the council, Herbert Stein, that the would result in a massive impairment of the President should annually recommend a tax present access available to American exports Paul W. McCracken, who will officially be­ under GATI'. We made it clear that this come councU chairman as soon as his nomi­ surcharge, which might be either negative would leave us no choice but to retaliate on nation is approved by the Senate, expressed or positive and Congress should then review a large scale against the products their coun­ this view in an interview with staff members and act on the recommendation. tries sell us. You may have seen in newspaper of . Mr. McCracken sees the period a.head as a stories the thought that our retaliation The interview took place in the Washing­ difficult one for economic policy, in part be­ might include such important export s as ton office of the Times on Jan. 9. Mr. Mc­ cause he thinks it ls harder to cope with European automobiles, typewriters, office Cracken last Tuesday authorized the publi­ inflation than with the underemployment equipment, wines, and similar items that cation of his remarks. that the Democrats faced when they came Americans buy from them in large amounts. Although the interview took place before into office in 1961. When I was in Europe recently, at a press the publlcatlon of President Johnson's final He said, in fact, that he believes there may conference in Paris I said that if the Com­ budget which projected a surplus of $3.4- be some sort of "malevolent law" that puts munity persists with this plan, our action in billlon, Mr. McCracken cited a surplus of Republicans in power, at times "when it ls return would make the chicken war look pale about that size as the proper one for the hard to be a hero." in comparison. What we, in fact, are saying budget in the coming fiscal year. INTERVIEW EXCERPTS to the Community ls that what it does to it s Mr. Mccracken said that such a budget Q. How do you feel about the particular agriculture ls more than an agricultural mat­ surplus was the right pollcy to begin bring­ ter-it concerns the whole economy of West­ visibility of the council during the Johnson ing inflation under control if it was coupled Administration, namely its confrontations ern Europe. If the cost to help European With the proper degree of credit restraint With industry on pricing situations? agriculture ls high, then let their industry on the part of the Federal Reserve System. pay the expense--but not ask the United A. I think it might be as well to see less of States to pay it. Mr. McCracken described the proper Fed­ that. I have never been persuaded myself of we have the strong support of American eral Reserve posture as a "lesser rate of mone­ the anti-inflationary productivity per man agricultural and trade groups in our efforts tary expansion" than prevaUed in 1968, but hour of high-level people spending their to keep Community markets open and we "not contraction." time on telephones. are making representation to the Commu­ He said that monetary policy appeared to Q . You are not sure of the value of the nity through all available channels. This ls a be on this course not but that he was not private arm-twisting then, as well as the very important matter on which we all stand certain it could be kept there and that the public denunciations? together. situation must be watched. A. I realize at times you get drawn into Our latest information ls that the Council Even if the Federal Reserve were to pur­ these things. But in general I think hlgh­ of Ministers of the European Community sue what he believed to be wrong policies, level man hours might better be spent on may consider this tax proposal later this he does not believe it should be denied its matters more fundamental to the problem. month, but ls not expected to take final ac­ traditional independence from Admlnlstra­ It ls very easy when you see a price or wage tion before April 1969. tlon control, Mr. McCracken said. At least, adjustment to say that the people who ma.de Sincerely, he added, this ls what he has believed in those decisions are responsible for the infla­ ORVILLE L. FREEMAN. recent years. tion-without raising the question as to January 28, 1969 CONGRESSIONAL RECORD-SENATE 1975 what created the environment which pro­ tary actions at this time to cope with infla­ process occurs, shouldn't the trade balance duced those decisions. tion and excessive demand, or should we be improve, too? A. It ought to. Q. What do you think of the wage-price patient? Q . What should be the objective on the guideposts? A. I would say that, looking at 1968, mone­ balance of payments? A. I think there would A. The difficulty is that when you start tary policy clearly has been too expansiontst, be a great therapy to be had from our run­ really to need the guideposts, then you are particularly after the tax increase. We pre­ ning a surplus for a while. It doesn't have not sure what the arithmetic ls. Take this sumably took the fiscal [tax) action to try to be a large one. It would be very helpful past year. The price level has gone up 4 to to cool off the economy and then the turn if we could demonstrate that if it is neces­ 5 per cent. Should Washington say wage in monetary policy tended to neutralize this. sary, we can run a. surplus. rates now ought to go up 8 per cent, 5 per Q. Are we now seeing a classic pattern of Q. For a year or two. A. Yes. cent, 5 per cent for the price rise and 3 per swinging back too sharply to restraint, poli­ Q. Beyond that, do you share the widely cent for real? But nobody Will say that. cies that could throw the economy into re­ held view that a deficit of the order of $1 [President Johnson's) Cabinet Committee verse? A. That is a key question. It must blllion, after you have achieved this demon­ on Price Stabil!ty suggested rolling it back be watched. stration effect, is probably tolerable? A. part way, taking account of just part of the Q. It could be, you say? A. It could be, Probably. price increase. But what does this mean to but that has not yet developed. THE RIGHT POSTURE a speclftc union or a specific company? What would be the signs that would tell Q. Granted that you think lnfiatlon is an you--ilarly-that there had been too sharp CHIEJ' ECONOMIC PROBLEMS urgent problem, do you envision any need a swing towards tightness? A. Well, certainly for action early in the new Administration? Q. What do you view as the chief economic one would be the rate of monetary and bank You suggested before we were rather in the problems that you should assign top priority credit expansion. right posture now. to as you come to Washington? Q . Do you mean if it dropped to zero or A. We are getting on the right course now. A. One is the problem of how you cool something like that? A. That would be too If we can keep the revenue-producing capac­ down this inflationary economy without at severe. ity of the tax system in close line With Gov­ the same time tripping off unacceptably high Q . Have you seen any signs, as yet, that ernment expenditures and if we can stay on a levels of unemployment. In other words, if the Federal Reserve ls tending to throw us course of lesser rates of monetary expan­ the only thing we want to do ls cool off the into reverse? A. No, and I am sure this ls not sion-not contraction, but lesser rates of lnfiation, it could be done. But our social their intention. expansion-I think then we ought to be able tolerances on unemployment are narrow. Q. On inflation. Let's assume that the Fed­ to work ourselves out of this inflation. Q. Is there a tolerable level of unemploy­ eral Reserve continues a policy of moderate Q. If you found, later on, that the fiscal ment? expansion in money and credlt--though less and monetary actions already taken are on A. I think the tolerable level is probably than we had for so long-and assume the the way to causing an excessive slowdown in zero. That is, so long as there is unemploy­ budget is in balance, which it is. Would you the economy, what steps should be taken ment, this ls going to be an issue because expect that combination alone to cool lnfia­ then? there is unfinished business here. On the tion off? A. Yes, I would. A. Well, I never have been impressed with other hand, I don't think there is any steady Q. And presumably Without an abrupt rise the quick turnaround capabllity of economic state relationship between the price level in the unemployment rate? pol!cy instruments. Therefore, it is important and unemployment. A. I think without an abrupt rise. At least, not to get into a situation where you have I do find myself impressed, however, With I would be hopeful that we could effect a to try to pull that off. The trouble is, if you this-that (from 1958) to about 1965, the fairly smooth transition. This ls a sticky try to pull it off, what you are apt to have rise in the price level was minimal and we thing. ls an over-correction the other way. Then got some decline in unemployment. But BALANCED BUDGET you will start getting the policy itself pro­ after 1965, the successive reductions in un­ It is tempting to say we shall cool down ducing a careening course for the economy. employment per point rise of the cost of inflation Without any rise in unemployment. As I survey history, I find myself increasingly living index have been rather small. And, obviously, so long as there are people impressed with the proportion of economic Q. That suggests that you begin getting unemployed we have unfinished business instability that can be attributed to the real inflation when you begin getting below here. But I think we cannot confidently say 4 per cent unemployment. erratic course of policy. that we can deal With this inflationary prob­ Q. The logical deduction from what you're A. Our experience this time would suggest lem Without affecting unemployment. saying is that you just shouldn't get too that somewhere in that zone, price-cost Q. You suggest that the present budgetary nervous over small squiggles in economic pressures intensify. and emerging monetary policy looks pretty activity. Q. We are now at the lowest point of un­ good. Am I right in assuming that barring a A. That is probably a good way to put it. employment since the Korean war, 3.3 per major change in the war situation, a bal­ We have been to some extent, I think, cent. Doesn't that give you some room to let anced budget should be continued in fiscal economic hypochondriacs. You get a wiggle it rise a. little bit Without ca.using some grave social problem and a. huge political '70? A. Yes. in a statistic, statistically Within the error outcry? Q. What about a surplus, and, if so, of of tolerance of the data, and everyone runs A. I am no expert in the political dimen­ what size for '70? A. When I say a balanced to get the thermometer. sions of these matters. I suspect if the un­ budget, obviously I don't mean one With a Q. Is it not possible to argue that the past employment rate rose from 3.3 per cent up zero surplus. I am talking a.bout expenditures eight yea.rs of uninterrupted prosperity-a tows.rd 4, there would be political flak. At being essentially covered by revenues. But I record the Nixon Administration is going to the same time, the Inflationary situation has don't see any reason in this context to go find hard to beat--may have resulted from become rather serious in this country. deliberately for a huge surplus. the Willingness to move fast against any Q. You are really talking about a zero sign of economic lllness? Getting back to your original question, range surplus-from a deficit of $2-blllion to another problem ls the external problem, the A. You are not going to get any speeches balance of payments. The overheated domes­ a surplus of $2-blllion? from me that the la.st eight years have been A. Something like that, if we were just all bad. It has been, in many ways, a very tic economy has also played a. major role in dealing With the domestic problem. But we the deterioration of our external payments. reinark.a.ble performance. There isn't any have the international payments matter, and question about that. You look a.t the relationship between the there you start getting into things that have rate of increase in imports and the rate of Now there have been a couple of major symbolic importance. For that reason, I factors which have been helpful. Some of the increase in gross national product and you would l!ke to move the zone up to a surplus Will find that a.t a.bout the 5 to 6 per cent major changes in defense spending came at of $2-blllion, or something like that. a time that helped keep the economic ex­ rate of increase for the gross national prod­ The international problem ls pertinent on uct, which ls, roughly a kind of noninfla­ pansion going. And while the disinflation of the large surplus, too. Theoretically, at least, the late fifties was overdone, I would very tionary rate, you get about the same rate if you run a large surplus, you are Hable to of increase in imports. But you let the rate much rather have come in as chairman of find yourself with fairly low interest rates. the council in 1961 than now, when we have of increase in G.N.P. go up to 8 to 10 per But low interest rates could produce trouble. cent and the "normal" relationship is to become concerned a.bout inflation. Q. A capital outflow? A. Yes. Of course, have imports rising at the rate of 15 to 18 if we had some kind of serious decline in the IMPACT OF TRUCE per cent per year. stock market, you could have the same In fa.ct, I think there is some kind of There is no mystery about it of course. problem. malevolent law about the rhythm of political In a large economy where imports are fairly Q. Because of what? A. Because there have life that puts some of us here when it is small, if you overheat the domestic economy, been substantial foreign purchases of stocks. hard to be a hero. the splllover of demand creates a high lever­ Q. What a.bout the impact of an end to the age on imports. This is why the apparently improved bal­ ance-of-payments situation is a heavily cos­ Vietnam war? Would you address yourself to FURTHER FISCAL ACTIONS metic situation. If this improvement were the opportunities and dangers of that. The third major problem is, of course, the occurring because we were improvlng our A. Well, of course, they are fundamentally whole continuing problem of bringing the trade balance, then one could be more san­ opportunities. As one looks a.t our experience disadvantaged groups In the population guine. in other transition periods, I don't see why more into .the mainstream of national life. A. If the policies now in effect work as we need t,o be very apprehensive about what Q. Do you favor any further fiscal or mone- you expect them to, and the cooling-off might happen in the interlude. The transl- 1976 CONGRESSIONAL RECORD- SENATE January 28, 1969 tlon problem ls far less, relatlve to the size alone should have. After all, It ls pre­ graduate work at Columbia, Nicholas Mur­ of the whole economy, than ln the post­ posterous for callow and Immature adoles­ ray Butler was both the relgnlng and ruling Korean perlod. Of course, the Jobs that are cents who presumably have come to the monarch. I don't belleve that ln his wildest curtailed may be ln one state and the ex­ university to get an education to set them­ dreams he could have conceived of the Co­ pandlng lndustrles across the country, You selves up as authorities on what research by lumbia scene today. The strongest argument have a problem o! meshlng these two. their teachers ls educationally permissible. I know agalnst the resurrection o! the body Is Q. I! the current rate o! lnflation ls too that If it were within the realm of posslblllty, much, what ls the tolerable level? Professor Hook was bitter in his Nicholas Murray Butler would have risen A. I thlnk we have to feel our way along criticism of those university professors from his grave and would now be storming here. We don't really have much experience and officials who have refused to face up Morningside Heights. ln trying to cool an economy ln orderly fash­ to the campus rebels. He said intelligence Having been an administrator ln a small ion. We slammed on the brakes ln 1957, but was not enough to overcome fanaticism; way myself, I have learned what an ungrate­ of course, we got substantlal slack ln the for this courage is also necessary. ful job it is, and at the same time how economy. I wouldn't attach a figure es to What is of the first lmportance-- necessary. Without admlnlstratlve leader­ what our objectlve ought to be at any polnt ship, every Institution (especially universi­ ln tlme, any more than I would really attach Said Professor Hook- ties, whose faculties are notoriously reluc­ a figure es to what our objectlve ought to is to preserve, of course, the absolute intel­ tant to Introduce curricular changes) runs be for unemployment. In both cases, we want lectual integrity of our classrooms and downhlll. The greatness of a university con­ them es low as posslble. laboratories, of our teachlng and research slsts predomlnantly ln the greatness of Its But over the next two or three years, we against any attempt to curb It. We must faculty. But faculties, because o! reasons too certainly ought to be slowing down slgnlfl­ defend it not only against the traditional complex to enter lnto here, do not them­ cantly the rate of prlce lnflatlon so that we enemies, who still exist even when they are selves build great faculties. To build great don't get the lncreeses factored lnto wage dormant, but also against those who think faculties, administrative leadership ls essen­ and prlce declslons. they have the lnfalllble remedies for the tial. In the affairs of the mind and In the Q. To do that, you'd have to cut the recent world's complex problems, and that all they realm o! scholarship, the principles of sim­ rate of inflatlon ln half, at least? A. I suspect need ls sincerity as patent of authority. ple majority rule or of "one man, one vote" so, yes. Fanatics don't lack sincerity. It ls thelr long do not apply. The most "democratically" run suit. They drip with sincerity-and when Institutions of learning are usually the most they have power, with blood--0ther people's mediocre. It takes a big man to live com­ COLLEGES SHOULD NOT YIELD TO blood. fortably with a still bigger man under hlm, MILITANTS' BLACKMAIL, WARNS no less to Invite hlm to cast his shadow over PROFESSOR HOOK Mr. President, I ask the unanimous the less gifted. consent that the full text of Professor TARGETS OF ABUSE Mr. DODD. Mr. President, recently Hook's speech be printed in the RECORD. The paradox today ls that as administra­ there came to my attention the text of a There being no objection, the speech tive power decreases and becomes more lim­ speech which Prof. Sidney Hook, of New was ordered to be printed in the RECORD, ited, the greater the dissatisfaction with It York University, one of the country's as follows: seems to grow. The memory of favors or foremost philosophers, made in May of STUDENT REVOLTS COULD DESTROY ACADEMIC requests denied remains much stronger than the memories of requests granted. Faculties last year at a dinner marking his retire­ FREEDOM-COLLEGES SHOULD NOT YIELD TO ment as head of the university's philoso­ are fickle In their allegiance. Overnight the Mll.ITANTS' BLACKMAIL, PROFESSOR WARNS--- most beloved of admlnlstrators can become phy department. I invite the attention of 0NLY COURAGE TAMES FANATICS the target of abuse, a figure of obloquy In Senators to the speech because I con­ (By Sidney Hook) the eyes of the very faculty, or a large sec­ sider it one of the most eloquent state­ I began my college career In the fall o! tion of It, which he himself has helped to ments of the dangers that now confront 1919, almost a half century ago. My academic build. In the very year that Clark Kerr re­ our Nation's campuses. llfetlme spans half a dozen revolutions In ceived the MelkelJohn medal for academic In his article Professor Hook warned American education. But have no fear, I am freedom, the faculty at the University of that the extremist revolt which has been not going to reminisce. I want to stay young, Callfornla campus at Berkeley panicked In sweeping the campuses of our country at least ln spirit, and I learned from my consequence of the events resulting from could result in the destruction of aca­ teacher, John Dewey, whom I observed the fourth student sit-In. closely for the last 25 years of his life, what In effect It repudiated hlm by adopting a demic freedom. He said that the ration­ the secret of staying young ls and that ls not set of resolutions that made him the scape­ ally committed must oppose the emo­ to reminisce about the past. Actually, I goat for the student lawlessness that It con­ tionally committed; and he called upon never heard John Dewey reminisce untll he spicuously refused to condemn. The faculty college administrations not to yield to the was ln his nlnetles, and that was es a reluc­ even voted down a motion that would have blackmail of the so-called militants. tant response to my dellberate prodding ln given the students complete freedom of Professor Hook said: order to extract biographical data from him. speech except to urge the commission o! immediate acts of force and violence. An­ Under the slogans of "students' rlghts" However, there ls a way of talking about the past that ls not merely reminiscence or other example: Vice President Truman ot and "partlclpatory democracy," the most Columbia University was vigorously ap­ mllltant group of students are movlng to Idle reverie. It occurs when we make com­ parlsons of the pest and present for the sake plauded at Columbia's commencement lest weaken and ultimately destroy the academlc June for, among other thlngs, opening new freedom o! those who disagree wlth them. of a present purpose or for the sake of finding a new way out of present difficulties. avenues of communication with students. Dr. Hook made the point that on every Fifty years ago when I began my college Only a few days ago he was roundly booed campus there are always some legitimate studies, It would be no exaggeration to say by a section of the Columbia faculty. grievances. But he said that instead of that the belief In academic freedom was Why any scholar (and adminlstrators are regarded as faintly subversive even ln many largely recruited from the ranks of scholars) seeking to resolve these grievances peace­ should want to become a full-time adminis­ fully through existing channels of con­ academic circles. The AAUP [American As­ sociation of University Professors], organized trator has always puzzled me. The duties, sultation and deliberation, the campus by two philosophers, Arthur Lovejoy and sacrifices and rlsks seem altogether dispro­ extremists seek to use these grievances John Dewey, was In Its Infancy without influ­ portionate to the rewards. In speaking of as an instrument for the destruction, ence or authority. Today, except ln some of admlnlstrators, one ls tempted to character­ first, of our free universities, and then the cultural and polltlcal backwaters of the ize them with the words Lecky used In his of our society. He quoted one of the lead­ U.S., academic freedom, although not free great history of European morals about the ers of SDS at Columbia as saying: from threats, ls firmly establlshed. In some fallen women of Europe . . . "The eternal regions It has the support of law. priestesses of humanity blasted for the sins As much as we would llke to, we are not of their people." Well, university adminis­ strong enough as yet to destroy the United Fifty years ago, the power of the chief university administrator was almost as un­ trators are no longer priests, but whenever States. But we are strong enough to destroy a crisis arises they are sure to be damned If Columbla! limited as that of an absolute monarch. To­ day the administrator ls a much harried Inan they do and damned If they don't. According to Professor Hook: with much less power and authorlty among SYNTHETIC STORMS The first casualty of the strategy of the faculty, and especially students, than his One thlng seems clear. In the crisis sit­ campus rebels ls academlc freedom. forebears. Today there may be temperamen­ uations shaping up throughout the country, It ls m anlfest ln thelr bold and arrogant tally happy administrators but their present administrators are not going to enjoy a clalm that the unlverslty drop lts research life ls an unhappy one. There seems to be an peaceful life. Thelr prospect of weathering ln whatever fields these students deem unfit open season on them, and to such a degree the storms that will be synthetically con­ for academlc lnqulry and lnvestlgatlon. Thls that for the first tlme In hlstory there ls an trived for them depends upon thelr ablllty note was already sounded ln Berkeley. It ls acute shortage of candidates for the almost and willingness to wln the faculty for what­ focal at Columbla. It is a shameless attempt 300 vacant administrative posts In Institu­ ever plans and proposals they advance In to usurp powers of decision that the faculty tions of higher learning. When I did my the name of the university. For if they per- January 28, 1969 CONGRESSIONAL RECORD- SENATE 1977 mit students or any other group to drive a tlons to them. All universities worthy of the the revolution, and then we will find out wedge between them and the faculty, they name already do. This IB one thing. But tao what for." This is truly the politics of ab­ Will discover the sad fact o! academic ll!e therefore conclude that these problems must surdity. that in such rifts the faculty wm either play become items not only on the agenda o! The usual response present-day academic a neutral role or even assume a hostile one. study but tor an agenda o! action ls quite rebels make to this criticism ls that the uni­ Not only on good educational grounds, another. versity today is nothing but an instrument therefore, but on prudential ones as well, the For it therewith transforms the university to preserve the status quo, and therefore adm.1n1stration must draw the faculty into into a political action organization and di­ faithless to the ideals of a community of the formulation of institutional educational verts it from its essential task of discovery, scholars. Even if this charge were true, even policy. I say this with reluctance because teaching, dialogue and criticism. Since there 1f the universities today were bulwarks of It means the proliferation of committee are profound dtiferences about the social the status quo, this would warrant criticism meetings, the dilution of scholarly interest, means necessary to achieve a society in which and protest, not violent and lawless action and even less time for students. But this ls there will be a maximum freedom to learn, in behalf of a contrary role, just as foreign a small price to pay for academic freedom the university would become as partisan and to their true function. But it ls decidedly and peace. biased as other political action groups urging not true! In talking about academic freedom, noth­ their programs on the community. Its pri­ There Is no institution in the country in ing signifies the distance we have come in mary educational purpose or mission would which dissent and criticism of official views, the space of my lifetime so much as the be lost. It would be compelled to silence or of tradition, of the conventional wisdom in fact that we now are concerned With the misrepresent the position of those of its all fields, ls freer and more prevalent than academic freedom of students. For historical faculty who disagreed With its proposals and in the universit y. The very freedom of dis­ reasons I cannot now explore, academic campaigns of action. Class and group con­ sent that students today enjoy in our uni­ freedom in the United States meant Lehr­ filcts would rend the fabric of the commu­ versities is In large measure a consequence freihei t, freedom to teach. Lehrjreiheit, free­ nity ot scholars in an unceasing struggle ot the splrtt of experiment, openness to new dom to learn, has only recently been stressed. tor power completely unrelated to the quest Ideas, absence of conformity and readiness It does not mean the same as it meant tor truth. to undertake new initiatives found among under the German university system that OBJECTIVITY IMPERILED them. presupposed the all-prescribed curriculum If the university is conceived as an agency ARROGANT CLAIM of studies of the Gymnasium. If academic ot action to transform society in behalf of a The first casualty of the strategy of the freedom for students means freedom to cause, no matter how exalted, it loses its campus rebels is academic freedom. It Is learn, then two things should be obvious. relative autonomy, imperils both its inde­ manifest in their bold and arrogant claim There ls no academic freedom to learn With­ pendence and objectivity, and subjects Itself that the university drop Its research In what­ out Lehrjreiheit or academic freedom to to retaliatory curbs and controls on the part ever fields these students deem unfit tor teach. Where teachers have no freedom to ot society on whose support and largesse it academic inquiry and investigation. This teach, students have obviously no freedom ultimately depends. note was already sounded in Berkeley. It is to learn, although the converse ls not true. This ls precisely the conception of a uni­ focal at Columbia. It Is a shameless attempt Second, student's freedom to learn was versity that is basic to the whole strategy to usurp powers of decision that the faculty never so widely recognized, was never so and tactics of the so-called Students tor a alone should have. After all, It Is preposter­ pervasive in the United States as it is to­ Democratic Society. I say "so-called" because ous for callow and immature adolescents who day-whether it be construed as the free­ their actions show that they are no more presumably have come to the university to dom to attend college or not, or the free­ believers in democracy than the leaders of the get an education to set themselves up as dom to select the kind of college the student so-called Student Non-Violent Co-ordinat­ authorities on what research by their teach­ Wishes to attend or his freedom of cur­ ing Committee are believers in non-violence. ers Is educationally permissible. ricular choice within the kind of college he And indeed the leaders of the SDS make no Unless checked, It Will not be long before selects. Above all, if academic freedom tor bones about that tact. In manifesto after these students Will be presuming to dictate students means the freedom to doubt, chal­ manifesto they have declared that they want the conclusions their teachers should reach, lenge, contest and debate Within the context to use the university as an instrument of especially on controversial subjects. This Is ot inquiry American students are the freest revolution. To do so, they must destroy the standard procedure in totalitarian countries in the world, and far freer than they were university as it exists today. In which official stud.ent organizations are when I attended college. the political arm of the ruling party. Al­ I wish I had time to list some ot the clever ready there are disquieting signs of this. I recall an incident when I was a student stratagems they have devised to focus their At Cornell a few weeks ago-before the 1n a government class at CCNY. The teacher opposition. On every campus there are al­ martyrdom of Dr. King-a group of Black conducted the class by letting the students ways some grievances. Instead of seeking Nationalist students Invaded the offices of give reports on the themes of the course. All peacefully to resolve them through existing the chairman of the economics department he contributed was to say "next" as each channels of consultation and deliberation, and held him captive in order to get an student concluded. But when in reporting on the SDS seeks to inflame them. Where griev­ apology from a teacher whose views on Afri­ the Calhoun-Webster debates, I declared ances don't exist, they can be created. In one can affairs they disagreed with. Only yester­ that it seemed to me that Calhoun had the piece of advice to chapter members, they were day, another group at Northwestern de­ better of the argument, that his logic was urged to sign up tor certain courses in large manded that courses in "black literature" better than Webster's although his cause was numbers and then denounce the university and "black art" be taught by teachers ap­ worse, the instructor exploded and stopped tor Its large classes I proved by the Negro students. me. After emotionally recounting his father's Freedom of dissent, speech, protest is never And there are spineless administrators and services in the Civil War, he turned wrath­ the real Issue. They are, of course, always cowardly members of the faculty who are fully on me and shouted: "Young manl legitimate. But the tactic of the SDS is to prepared to yield to this blackmail. Under the When you're not preaching sedition, you are give dissent the immediate form of violent slogans of "student rights" and "participatory preaching secession I" Whereupon he drove action. The measures necessarily adopted to democracy" the most mllitant groups of me from the class. (The "sedition" was a counteract this lawless action then become students are moving to weaken and ulti­ reference to an earlier report on Beard's eco­ the main Issue, as If the original provocation mately destroy the academic freedom of those nomic interpretation of the Constitution hadn't occurred. Marlo Savio admitted after who disagree With them. that he had heard With grim disapproval.) the Berkeley affair that the Issue of "tree Let us not delude ourselves. Even when And this was at CCNY in 1920 I The incident speech" was a "pretext"-the word was his-­ wasn't typical, but that it could happen at these militant students tail to achieve their to arouse the students against the existing ultimate purpose, they succeed in demoral­ all marks the profundity of the changes in role of the university in society. attitudes toward students since then. John izing the university by deliberately forcing a Dewey's Influence has made Itself felt even SEEK TO DESTROY confrontation upon the academic community in the colleges today. One of the leaders of the SDS at Columbia that It Is not prepared to face and the costs of Is reported to have said: "As much as we which It Is fearful of accepting. In forcing MORAL PREMISE would like to, we are not strong enough as the hand of the academic community to meet Ot course, there is still a large group of yet to destroy the United States. But we are force with force, the citadel of reason be­ potential college students who are deprived strong enough to destroy Columbia!" He 1s comes a battlefield. The students glory in It, of freedom to learn because of poverty or wrong about this, tOCr-the only action that but the faint of heart among their teachers prejudice or the absence of adequate educa­ would destroy Columbia would be faculty turn on their own adm!nistratlve leaders. tional facll1tles. And as citizens of a demo­ support of the students !-but his intent Is These mmtants succeed In sowing distrust cratic society whose moral premise Is that clear. among students who do not see through their each individual has a right to that education Actually, the only thing these groups, strategy. They also succeed in dividing the that will permit him to achieve his maximum loosely associated With t he New Left, are faculties. growth as a person, our duty Is to work for, clear about ls wh at they want to destroy, EMBITI'ER RELATIONS or support, whatever measures of recon­ not what they would put in Its stead. In a There ls always a small group-a strange struction we deem necessary to remove the debate With Gore Vidal, Tom Hayden, one mixture of jurists and opportunists desirous social obstacles to freedom of learning. It Is of the New Left leaders, was pointedly asked ot ingratiating themselves With students-­ perfectly legitimate to expect the university what his revolutionary program was. He re­ who will never condemn the violence of stu­ to study these problems and propose solu- plied: "We h aven't any. First we Will make dents but only the violence required to stop 1978 CONGRESSIONAL RECORD- SENATE January 28, 1969 it. These students succeed, even when they revolt or the emotionally committed the re­ the North Atlantic Assembly, should be ran, in embittering relations between the ad­ volt of the rationally committed. I do not reported. Cb1ef among these is the fact ministration and some sections or the faculty. want to Identify this with the revolt of the They succeed, even when they fall, in an­ moderates. There are some things one should of a highly successful meeting of the tagonizing the larger community of which not be moderate about. In the long run, the Eastern Mediterranean Development In­ the university Is a part, and in arousing a preservation of democracy depends upon a stitute, which took place in Brussels on Vigilante spirit that demands wholesale passion for freedom, for the logic and ethics November 14 and 15, 1968. The meeting measures of repression and punishment that of free discussion and inquiry, upon refusal was attended by a representative group educators cannot properly accept. to countenance the measures of violence that of industrialists, bankers, and business­ How ls it possible, one asks, for events of cut short the processes of intelllgence upon men from Greece and Turkey, and also this character to happen? There have always which the possib!l1ty of shared values de­ from the other countries of the North been extremist and paranoidal tendencies in pends. academic life, but they have been periph­ These are old truths but they bear repeat­ Atlantic Alliance. A broadly representa­ eral-Individuals and small groups moving in ing whenever they are denied. Even tautolo­ tive board of directors of the Eastern eccentric Intellectual orbits. But not until gies become Important when counterposed Mediterranean Development Institute the last four or five years has the norm of to absurdities. was elected, and that institute was social protest taken the form of direct action, We as teachers must make our students launched on what promises to be an ex­ have positions been expressed in such ultlma­ more keenly aware of the oentrality of the tremely successful career. tlstlc and Intransigent terms, have extremist democratic process to a free society and of Second, in December 1968, the work elements been strong enough to shut down the centrality of intelllgence to the demo­ wh1ch has been done on the development great universities even for a limited time. cratic process. Democracy has our allegiance There are many and complex causes for because of its cumulative fruits, but at any of the basin of the Meric-Evros River was this. But as I see It, the situation In the uni­ particular time the process Is more important carried a further step forward, in the versity Is part of a larger phenomenon, Viz., than any specific program or product. He course of meetings between myself, Mr. the climate of intellectual life In the country. who destroys the process because it does not Rubin, executive director of EMDI, and I do not recall any other period in the last guarantee some particular outcome Is as Mr. Paul Hoffman, director, and Mr. 50 years when intellectuals themselves have foolish as someone who discards scientific Paul-Marc Henry, deputy director of the been so intolerant of each other, when differ­ methods In medicine or engineering or any United Nations Development Program. It ences over complex Issues have been the oc­ other discipline because of its failure to solve is anticipated that a UNDP project team casion for denunciation rather than debate altogether or Immediately a stubborn prob­ and analysis, when the use of vlolence--in lem. will be visiting Greece and Turkey short­ the right cause, of course!-ls taken for COURAGE NEEDED ly, and that further steps in the devel­ granted, when dissent is not distinguished There is one thing we cannot deny to the opment of mutually desirable relation­ from civil disobedience, and civil disobedience intransigent and fanatical enemies of de­ ships between Greece and Turkey will makes common cause with resistance, and mocracy. That is courage. Intelllgence Is nec­ thus have been taken. readiness for Insurrection. A few short years essary to overcome foolishness. But it is not Mr. President, I ask unanimous con­ ago, anti-Intellectualism was an epithet of sufficient to tame fanaticism. Only courage sent that the report be printed in the derogation. Today It Is an expression of revo­ can do that. A handful of men who are pre­ lutionary Virility. RECORD. pared to fight, to bleed, to suffer and, If need There being no objection, the report FANATICISM RAMPANT be, to die, will always triumph in a commu­ nity where those whose freedom they was ordered to be printed in the RECORD, In the fifties I wrote an essay on "The as follows: Ethics of Controversy," trying to suggest threaten are afraid to use their Intelligence guidelines for controversy among principled to resist and to fight, and ultimately to take REPORT OF SENATOR JACOB K. JAVITS, AS democrats no matter how widely they dl1fered the same risks In action as those determined TRUSTEE FOR THE SPECIAL COMMITTEE ON on substantive issues. Today I would be talk­ to destroy them. DEVELOPING NATO COUNTRIES, OF THE ing into the wind for all the attention it Yes, there Is always the danger that cour­ NORTH ATLANTIC AsSEMBLY, NOVEMBER 1968 would get. Fanaticism seems to be in the age alone may lead us to actions that will It may be said at the outset that initiative saddle. That It Is a fanaticism of conscience, make us similar to those who threaten us. taken by the Assembly (then the NATO Par­ of self-proclaimed virtue, doesn't make It less But that is what we have Intelligence for­ liamentarians' Conference) has been demon­ dangerous. This past year has presented the to prevent that from happening! It Is this strated to have been a valuable contribution spectacle of militant minorities In our col­ union of courage and intelligence upon to development and to amelioration of rela­ leges from one end of the country to another, which the hope of democratic survival tions between two Important countries of preventing or trying to prevent representa­ depends. NATO. The work of the Project and of the tives of positions they disapprove of from Institute have been founded on the convic­ tion that an enterprise which Is essentially speak.Ing to their fellow-students wishing to GREEK-TURKISH ECONOMIC listen to them. private In its nature, and which has relied The spectacle shows that we have failed to COOPERATION PROJECT on the mutuality of interest in the private make our students understand the very rudi­ sector on both sides, can carry on Important Mr. JAVITS. Mr. President, I have on functions even during a period marked by a ments of democracy, that to tolerate active several previous occasions brought to the intolerance is to compound It. If we judge variety of governmental difficulties. That this attention of the Senate the work of the ls so ls, of course, attributable largely to the commitment by action, the simple truth Is fact that both of the directly Interested na­ that the great body of our students Is not project for Greek-Turkish economic co­ firmly committed to democracy or to the operation. Reports on this matter were tions have continued to give their Interest presented on June 3, 1965, on October 20, and their support to the project. It Is also liberal spirit without which democracy may due to the willingness of businessmen, In­ become the rule of the mob. 1965, on January 19, 1967, and on De­ dustrialists and bankers, not only of Greece I do not know any sure way or even a new cember 15, 1967. and Turkey, but also of North America and way of combatting the dominant mood of I now present a report on this impor­ Western Europe, to make a strenuous effort lrratlonallsm, especially among students and tant project through the calendar year toward cooperative and mutually beneficial even among younger members of the faculty results. In great measure, the benefits of this whose political naivete is often cynically ex­ 1968. Mr. President, first I should like to project go beyond Its own limits, and demon­ ploited by their younger, yet politically more strate the feasibility of mobilizing the great sophisticated, allies. What is of the first im­ submit for the RECORD the substantive resources of private enterprise toward a portance is to preserve, of course, the abso­ text of a report which I presented to the broadly statesmanlike end. lute intellectual integrity of our classrooms North Atlantic Assembly on November The technique here used may therefore and laboratories, of our teaching and research 20, 1968. That report was presented to the suggest possibilities for much useful work, against any attempt to curb It. We must de­ North Atlantic Assembly in my capacity beyond the parameters of the Greek-Turkish fend It not only against the traditional ene­ enterprise itself. I should therefore mention Inies, who still exist even when they are as trustee of the Special Committee on Developing NATO Countries, of wb1ch I at the outset the Important role played by dormant, but also against those who think my former colleagues on the Special Com­ they have the infalllble remedies for the was chairman, and which has now been mittee, particularly the Deputy Chairmen of world's complex problems, and that all they dissolved, its principal functions having that Committee, Messrs. Spanorrlgas of need is sincerity as patent of authority. Fa­ been successfully discharged. I have been Greece and Gillek of Turkey, and Its Rap­ natics don't lack sincerity. It Is their long requested by the North Atlantic Assem­ porteur, Mr. Westerterp of the Netherlands. suit. They drip with sincerity-and when bly to act as the custodian of the respon­ In the work of the Institute, of which (as they have power, with blood--other people's was the case with the Special Committee), I blood. sibilities of that committee and it is in this capa<:ity that I have presented my have the honor to be Chairman, Messrs. We need more, however, than a defensive Gillek and Governor Karol Arllotls of Greece, strategy, safeguarding the Intellectual in­ report to the North Atlantic Assembly and Mr. George James of the United States, tegrity of our vocation against those who itself. have given time, energy, and skilled guidance. threaten It. We need-and I know this Several developments, falling outside Much credit Is due to them, and to the sounds paradoxical-to counterpose to the of the scope of the report presented to devoted servtce of former Ambassador Sey- January 28, 1969 CONGRESSIONAL RECORD- SENATE 1979 mour Rubin, the Executive Director of the It is hoped that interest in Western Europe, being discussed with the Agro-Industrial De­ project, and Mr. Albert Zumbiehl, his where connections with Greece and Turkey velopment Company, an American-based or­ European associate. are strong and traditional, will be reflected ganization which combines the resources of Finally, the Honorable Seymour J. Rubin in additional support. several companies in the agricultural-indus­ of the United States and M. Albert Zum­ Since the Institute plans to have no sub­ trial field, and which has also the participa­ biehl of France have consented to continue stantial staff of its own, but to rely heavily tion of Adela--a highly successful enterprise with the Institute as Executive and European on the expertise available to its membership, in whose initiation I and the NATO Parlia­ Directors, respectively. Much 1s owed to them these arrangements should carry the Insti­ mentarians• Conference played a vital role. tor the success of the project so far. tute through calendar year 1969. During 1969, I go into this matter in some detail for I may come now to the organizational it is hoped to transform the Institute into a several reasons. The proposal to bring to­ framework as it presently exists. broadly based organization, with a substan­ gether the investment and banking interests As was reported in November 1967 to be tial membership In the business and financial concerned with economic development is im­ the intention, the Eastern Mediterranean communities, as well as in professional cir­ portant in itself, since it cuts across all fields Development Institute was in fact organized cles. Hopefully, the Institute would then be of economic development, and not merely a as a non-profit corporation under the laws supported by numerous but relatively smaller single industry, however important. But this of the District of Columbia of the United contributions with Individual projects being project also illustrates the progress of a proj­ States. A meeting of the nucleus of its Board the beneficiaries of collateral financing by ect, from a general discussion arranged by of Directors was held in Athens, in May, foundations or other&--as was, for example, the Institute to the elaboration in close con­ 1968. At that meeting a number of important the case with the generous financing of the sultation with all concerned of a proposal, organizational decisions were taken. studies of the Meric/Evros River by the the revision of that proposal after consulta­ It was decided, first of all, that branches Thyssen and Volkswagen Foundations. Ad­ tion with the competent international or­ or sister organizations, depending on the ministrative costs will thus be kept to a ganizations, subsequent discussion of meth­ legal and other relevant considerations in minimum, with available resources being ods of implementation, and then placing the the two countries, should be established in used for directly productive projects. proposal before capable private organizations. Greece and Turkey. Informally, steps have As will be recalled, at the meetings of No­ It is o! course too early to say what wil! be already been taken in this direction, con­ vember, 1967, both of the Assembly and of the outcome. It is not too early to say that tinuing and expanding upon the systems of the International Advisory Commission of the working out of a project in this manner liaison which has proved its merit. In both the Project for Greek-Turkish Economic Co­ is, in and o! itself, important. Greece and Turkey, assurances of financial operation, a Work Program was approved. With respect to specific projects, I am support for these national operations have This document suggested that the work of unfortunately not able to report much ad­ been given, with a special fund already the Institute might be divided into two main vance in our projected work on tourism, a created in Greece and partially contributed categories: in the i:eneral category was the field which is by all objective appraisals an in Turkey. continuation of efforts to encourage fruitful extremely desirable one for cooperation, with Secondly, it was decided to expand the contacts and discussions, in the context of much mutual benefit to be derived. Despite Board of Directors so as to include impor­ the international organizations of which much work, and many assurances of willing­ tant and representative business and finan­ Greece and Turkey are both members, and ness to meet, it has been difficult to follow cial interests in North America and Western with emphasis on the private sector; in the up on the useful meeting of November, 1966, Europe. I am glad to be able to report that specific category was work on the various and the subsequent informal talks in the invitations extended by me to a number of projects already or to be undertaken-the following year. Nonetheless, it may be re­ such persons have been accepted, and that Merlc/ Evros work, tourism, agriculture, cul­ ported that this was one of the subjects dis­ the first order of business of the current tural exchange, and so forth. cussed during the May visit of the Greek meeting of the Institute (in Brussels on I am pleased to be able to report that much Minister of Commerce to Ankara, and it Nov. 16, 1968) will be to fill out the Board. has been done, in both categories. may be said that the difficulties appear to be Those who have been o:ffered and have ac­ New contacts have been established and procedural rather than substantive. cepted membership on the Board have shown existing ones strengthened. During the meet­ On other fronts, work is progressing, with past interest in the project, have expressed ings in Athens of May, 1968, for example, organizations such as the FAO and the OECD will1ngness to help in the future, and are special sessions, both formal and informal, participating. The most important and in­ indeed a distinguished group. were arranged between members of the Greek deed dramatic results, however, have been Thirdly, it was emphasized at the Athens and Turkish investment banking communi­ achieved in connection with the Meric/Evros meeting that important decisions of the ties, and between institutions financing eco­ project. Institute must reflect also the agreement nomic development. These meetings were a In October, 1967, at a conference in Frank­ of the Turkish and Greek members. This is more specific followup of meetings which it furt, Germany, the report was finalized of an obvious requirement, but one which none­ has been my practice to arrange in Washing­ the tripartite (German, Greek, Turkish) ex­ theless deserves mention specifically. It re­ ton during the meetings there of the Gover­ pert commission set up to make a recon­ flects my strong personal conviction, shared nors of the World Bank and the Interna­ naissance survey of the Meric/Evros River by my colleagues. that useful work in this­ tional Monetary Fund. Thus, the May meet­ basin. The economic-and political-signifi­ as in many other areas of international ings in Athens, with a few but deeply inter­ cance of this cooperative work on this border activity-must rest on the interest, and ested participants, were followed by a useful between Greece and Turkey is evident. Al­ involvement, indeed the commitment of breakfast meeting held at my invitation in though the work on the study was done by those directly affected, and with most at the Capitol in Washington, where participa­ private experts, under private auspices, it stake. The Institute must not, and will not, tion included not only the official representa­ received the full support of governmental be an organization which seeks to tell our tives of Greece and Turkey, members of the authorities on both sides. The report, when Greek and Turkish friends what ls good for investment banking communities in both completed, was forwarded to several inter­ them. Its work must arise out of their con­ countries, and in the United States, but also national institutions, notably the World viction that they wish done what the In­ representatives of the World Bank and the Bank and the United Nations Development stitute can do, and out of their full partic­ International Finance Corporation. Programme, which had taken a strong inter­ ipation in its work, at all stages from plan­ Nor have these sessions been merely dis­ est in this project from the outset. ning to implementation. In such circum­ cussions, useful though discussions of this As I have previously indicated, I received stances, the Institute can perform a valuable sort is. Specific proposals have been elab­ some months a.go the visit of the Bulgarian catalytic function, can help to mobilize orated for a study of complementary invest­ Ambassador in Washington, who expressed outside resources, can act as a liaison with ment opportunities and policies. Here a mem­ the interest of his government in the mat­ various international and national organiza­ orandum was prepared by Mr. Rubin, but ter-an interest which is both natural and tions. But a basic responsibility for decision only after consultation with and strong en­ useful, since the river originates and flows must be recognized to rest With the Greek couragement from the financiers of industrial for almost 60% of its length in Bulgaria. As and Turkish participants. development in Greece and Turkey. The has been indicated in the report made by our Brief mention may be made of the finan­ memorandum was subsequently circulated own tripartite expert commission, Bulgarian cial arrangements for the Institute, and of to and discussed with the World Bank and cooperation would substantially improve the plans for the future. the IFC. The breakfast meeting to which I cost-benefit ratios of work to be done on the A generous grant has again been made by have alluded, of October 3, 1968, was thus Greek-Turkish segment of the river. The the Ford Foundation to help in the establish­ held on the basis of much preparatory work, Bulgarian authorities having further indi­ ment of the Institute. I have already men­ and has resulted in specific proposals being cated their interest, and after this interest tioned the financial support given or com­ elaborated in consultation with the Turkish having been made known both to the United mitted on the Greek and Turkish sides. Mr. and Greek sides. An informal agreement has Nations Development Programme and the George James of the Mobil Corporation of been reached to exchange information re­ Greek and Turkish authorities, a further the United States has carried to other Ameri­ lating to laws and practices which might meeting took place between myself and the can and Canadian companies his own con­ affect complementary or even joint financing viction in the worth of this work, and has of projects. As a further step toward imple­ Bulgarian Permanent Representative to the mobllized substantial financial assistance. mentation of these proposals, and again with United Nations in Geneva, under the aus­ As a result, the matching requirement of the the full participation of the Greek and pices of the UNDP. In early October of this Ford Foundation grant has already been met. Turkish investment bankers, a survey is year, Mr. Rubin was informed by the UNDP 1980 CONGRESSIONAL RECORD- SENATE January 28, 1969 that the Bulgarians would be pleased to re­ of confidence and hope in the United Anchorage, Alaska; legislative representative ceive a UNDP exploratory mission. Nations itself, as one means to bring for the Teamsters, Anchorage. During the week of October SO-November about a more ordered and peaceful Mr. John T . Rowlett, P.O. Box 1389, Fair­ 6, thus, a small UNDP mission has visited world. banks, Alaska; Rowlett and Associates, oil SOfla, Athens and Ankara. It should be un­ a.nd gas consultants. derscored that this is an exploratory mission, There is a serious reason to mention Wllllam I . Waugaman, 270 Illinois Street, particularly insofar as any plans beyond the this, Mr. President. It concerns the field Fairbanks, Alaska; general manager, Us1bell1 boundaries of Greece and Turkey are con­ of human rights. While we have invested Coal Mines, Inc. cerned. Lt is nevertheleBB an important fact a half billion dollars to support the in­ Robert A. Davenny, 2414 Susltna Drlve, that the UNDP is discussing with Greece and stitutions of the organization, we have Anchorage, Alaska; R. A. Davenny and Asso­ Turkey the possibillty of further steps look­ not ratified the human rights conven­ ciates, Contracting. ing toward a full scale feasibillty study of the tions which that organization has de­ Mrs. Margee F1tzpartr1ck, 2407 Cottonwood, Meric/Evros region, that Bulgaria, as one of Anchorage, Alaska. the riparian states, has been informed, and veloped. After 20 years, we stand as one Mr. David W. Redeker, 326 Dewey Circle, that this important regional and multina­ of four major members of the UN. Anchorage, Alaska; insurance. tional project continues to progress, with which have ratified only two or less of Mr. Andy Milner, 2214 Susltna Drive, An­ United Nations participation. the almost 20 conventions. The other chorage, Alaska; contractor, Anchorage, It may be further pointed out that dis­ major countries, Mr. President, whose Alaska. cussions in Washington growing out of the record rivals our own are Bolivia, Saudi Mrs. Brtdeen C. Milner, same address as interest in the United States in a Water for Arabia, South Africa, and Thailand. above; chairman of the board, Alaska State Peace programme have centered on the Merle/ The two conventions that have been Bank, Anchorage, Alaska. Evros and the work of the Institute. After Alvin o. and Rosa Bramstedt, 2612 Brooke the international Water for Peace Confer­ ratified by the United States are con­ Drive, Anchorage; radio and TV. ence in Washington, in the summer of 1967, cerned with the abolition of slavery. They Willard L. Bowman, 1112 E. 68th Street, much attention has been focussed on multi­ are important. But the "big three" of the Anchorage, Alaska; executive director, Alaska national projects. In this context, the work conventions are those which outlaw State Commission for Human Rights. of the Institute has attracted attention, and genocide, abolish forced labor, and guar­ D. Peter Shoup, 111 4th Street, Juneau, it has been suggested that this work might antee fair and equal rights for women. Alaska; Alaska manager, Associa.tion ot provide the start ing point for two fields of But these and all but two of the conven­ Pacific Ft.sheries. investigation. One such field would be the tions still await the ratification of the R. L. Rettig, 644 Fifth Avenue, Anchorage, utlllsation of the technique of the Merle/ Alaska; president, Alaska Mutual Savings Evros study-that is, the use of private scien­ U.S. Senate. Bank. tists, privately sponsored, but with full gov­ Mr. President, one way to make cer­ Mr. Ken Sheppard, Box 97, Anchorage, ernmental support and approval. Here it may tain that our contributions to the U.N. Alaska; consulting engineer. be that in C".ertain cases more can be achieved, will return a substantial dividend for Mr. Ken Brady, 4001 Turnagain Blvd. East. to the greater satisfaction of all, than would mankind is to ratify these important Anchorage, Alaska; Ken Brady Construction be the case if rigorous channelization through conventions. Co., Inc., General Contractors. governmental departments were the rule. The Robert J, Halcro, transportation. second such field is the posslbillty of ex­ Mr. W1111am L. Warren, 2400 Susitna Drive, perimenting with computerization, in order Anchorage, Alaska; house furnishings. to keep data both current and immediately SUPPORT OF SECRETARY OF THE Carl and Oarol Brady, 712 W. 18th Avenue, avaUable. Here work done by the FAO is INTERIOR HICKEL BY MANY Anchorage, Alaska; air transportation. relevant, and the establishment of a data ALASKANS Mr. Clifford Groh, 430 C Street, Anchorage, storage, information retrieval and possibly a in Alaska; attorney. research center has been preliminarUy dis­ Mr. STEVENS. Mr. President, the Eben Hobson, Barrow, Alaska; construc­ cussed, with it having been suggested that period preceding the confirmation of the tion. a start might be made in a seminar on the nomination of Gov. Walter J. Hickel to Mrs. Al Owens, Kodiak, Alaska. subject of international river basins, which be Secretary of the Interior, more than W1111am Hensley, Kotzebue, Alaska; mem­ could be sponsored jointly by the Water for 60 Alaskans came to Washington. Those ber of the Alaska State Legislature and vice Peace office and the Institute. As a measure in attendance consisted of many native chairman of A.F .N. of the interest in this matter, a representa­ leaders, business and community lead­ Mr. Roger Lang, Sitka, Alaska; Sitka Native tive of the Water for Peace Programme wlll ers, and people who have been friends Brotherhood, Education Committee, first vice address the November 16, 1968 meeting of of Mr. Hickel for many years. president, Tungit and Haida. the Institute. Mr. Richard Frank, 266 College Road, Fair­ All of this represents much useful and tan­ These people to me represent a democ­ racy really in action. banks, Alaska; member of the board of direc­ gible work. But I feel that most important, tors, Fairbanks Native Association. among the achievements to which the Spe­ I ask unanimous consent that the Mrs. Walter J . Hickel, Juneau, Alaska. cial Committee, the Project for Greek-Turk­ names of the Alaskans who were in the Mr. Jack Hickel, Juneau, Alaska. ish Economic Cooperation and the Institute Nation's Capital to support the confir­ can lay claim to a greater or lesser degree, ls Senator Ernest Gruening, Juneau, Alaska. mation of the nomination of Gov. Wal­ Mr. Walter J . Hickel, Jr., Juneau, Alaska. the greater measure of confidence in Greek­ ter J. Hickel to be Secretary of the Turkish relations, both in the private and Mr. and Mrs. Charles Cole, 1109 Park Drive, the government al sector. Mr. Rubin has re­ Interior be printed in the RECORD. Fairbanks, Alaska; attorney. cently been able to inform the Greek busi­ There being no objection, the list of Mr. and Mrs. Ken Davis, 2072 Stanford ness and industrial community that an names was ordered to be printed in the Drive, Anchorage, Alaska; car dealer. invitation to come to Turkey for friendly RECORD, as follows: Michael Blerne, M.D., 207 E. Northern discussions on matters of common Int erest .ALASKANS WHO WERE IN THE NATION'S CAPI­ Lights Blvd., Anchorage, Alaska. will shortly be extended. Contacts in the TAL AND SUPPORTED THE CoNFmMATION OJ' George and Stella Boney, 1707 Sunrise cultural sphere, which would have been out THE NOMINATION OJ' WALTER J. HICKEL TO Drive, Anchorage, Alaska; attorney. of the question not long ago, are now under BE THE SECRETARY OJ' THE INTERIOR M. A. Braund, 3130 Iliamna, Anchorage, discussion. This is substantial and meaning­ Flore Lekanof, Box 289, Star Route A, An­ Alaska; contractor. ful progress, on the basis of which a solid chorage, Alaska; consultant to AFN. Mr. Joe Kuchta, Kenai, Alaska. and continuing relationship between Greece W1111am H. Scott, 736 O Street, Anchorage, Warren Christianson, 132 Lincoln, Box 4, and Turkey m ay be built. Alaska; member of the firm of Peat, Marwick, Anchorage, Alaska. Mitchell. Mr. Edward Wayer, Anchorage, Alaska. 0111! R . Taro, Southeast Stevedoring Corp., Mr. Hal Olson, Douglas, Alaska. HUMAN RIGHTS: WHERE OUR IN­ P. 0. Box 1411, Ketchikan, Alaska; president Mr. and Mrs. Preston Locher, 2822 Mc­ VESTMENT STOPS-XIII and general manager of Southeast Stevedor­ Collie, Anchorage, Alaska; Locher Construc­ ing Corporation. tion Co. Mr. PROXMIRE. Mr. President, since Raymond C. Christiansen, Box 36, Bethel, Mr. Ken Hinchey, 1327 W. H111crest Drive, the United Nations was established in Alaska; president, Christiansen Air Service. Anchorage, Alaska; contractor. 1946, the United States has contributed Mr. Herb Lehfeldt, City Manager, 155 S. A. 0. Hiebert, 111 F. Street, Anchorage, almost $450 million to the support of the Seward, Juneau, Alaska; city manager of Alaska; radio and TV. organization. Juneau. Mr. Vernon W. Hickel, Anchorage, Alaska. Mr. Charles F. Lunsford, 2633 34th Street, Mr. and Mrs. Charles Meacham, Juneau, This contribution represents a signi­ Anchorage, Alaska; Bear Run Building Ma­ Alaska. ficant investment by us in the cause of terials. Alexis Mlller, Fairbanks, Alaska. peace. It also represents an investment Mr. Lewis Dischner, 1332 mllcrest Drive, Miss Vi Bjerke, Anchorage, Alaska. January 28, 1969 CONGRESSIONAL RECORD- SENATE 1981

Mrs. Nancy Mood, 427 Buren, Ketchikan, 2. VIETNAM PEACE PLAN men are aware, has had two very long meet­ Alaska. Q. Mr. President. Now that you're Presi­ ings, and in addition I spent many long Miss Rose Golik, 1615 Hidden Lane, An­ dent, what is your peace plan for Vietnam? hours at night reading the papers which in­ chorage, Alaska. A. I believe tbat as we look at what ls volve the foreign poUcy of the United States. Mrs. Madeleine IDckel, Anchorage, Alaska. happening in the negotiations in Paris tbat This afternoon, I will go to the Pentagon Mr. Em1l Notti, Anchorage, Alaska; presi­ as far as the American side ls concerned, we for my first major briefing by military offi­ dent, Alaska Federation of Natives. are otr to a good start. What now, of course, cials on our military situation. Going beyond Mr. John Borbridge, Albert Kaloa Bldg., is involved is what happens on the other side. that, however, I would say that the problems Anchorage, Alaska; vice president, Alaska We find that 1n Paris, if you read Ambassador of our cities which have been discussed at Federation of Natives. Lodge's statement, that we have been quite length at the Urban Affairs Council and our Mr. Barry Jaekson, Fairbanks, Alaska; specific with regard to some steps that can economic problems which were discussed at attorney. be taken now on Vietnam. the meeting we had in the new Cabinet Com­ Eldon Ulmer, Anchorage, Alaska. Rather than submitting a laundry list of mittee on Economic Polley require urgent Mr. John Sweet, 3000 Sheldon Jackson, various proposals, we have laid down those attentions. Anchorage, Alaska. things which we believe the other side should It's very difficult to single one out and Mr. Bob Zelnick, Anchorage, Alaska. agree to and can agree to--the restoration of put it above the other. There are a number Neland Haavig, Box 901, Sitka, Alaska. the demllltarlzed zone as set forth in the of problems which this Administration con­ Miss Tony Stepovich, Fairbanks, Alaska. Geneva Conference of 1954, mutual with­ fronts. Each requires urgenit attention. The Mr. Donald Simasko, 2101 Forest Park drawal-guaranteed withdrawal of forces by field of foreign policy wlll require more at­ Drive, Anchorage, Alaska. both sides, the exchange of prisoners, all of tention because it ts in this field tha,t only Miss Anne Sweet, 3000 Sheldon Jackson, these are matters that we think can be pre­ the President in many instances can make Anchorage, Alaska. cisely considered and on which progress can the decision. be made. 5. NUCLEAR POLICY Now where we go from here depends upon Q. Mr. President, on foreign-foreign pol­ PRE.'3IDENT NIXON'S FIRST NEWS what the other side offers in turn. icy, nuclear policy in particular, could you CONFERENCE 3. RELATIONS WITH CHINA give us your position on the nonproliferation Q. Mr. President, now that you are Presi­ treaty and on the starting of missile talks Mr. MURPHY. Mr. President, I could dent, could you be specific with us about with the Soviet Union? not have been more pleased and heart­ what your plans are for improving relations A. I favor the nonprollferatlon treaty. The ened than I was by the very impressive with Communist China and whether you only question is the timing of the ratifica­ performance yesterday of President Nix­ think you'll be successful or not. tion of that treaty. That matter wlll be A. Well I have noted, of course, some ex­ considered by the National Security Council on at his first news conference as Chief by my direction during a meeting this week. Executive. Everyone with whom I have pressions of interest on the part of various Senators and others in this country with re­ I will also have a discussion with the leaders talked since has enthusiastically volun­ gard to the possiblllty of admitting Com­ of both sides in the Senate and the House teered the opinion, which I certainly munist China to the United Nations. on the treaty within this week and in the share, that the President showed him­ I also have taken note of the fact that sev­ early part of next week. self to be cool, confident, and compe­ eral countries, including primarily Italy I will make a decision then as to whether tent-dearly in command of the situa­ among the major countries, have indicated this is the proper time to ask the Senate an interest in changing its policy and pos­ to move forward and ratify the treaty. I ex­ tion and fully prepared to meet the chal­ pect ratification of the treaty and will urge lenges he will face. sibly voting to admit Communist China to the United Nations. its ratification at an appropriate time and President Nixon, in the statesmanlike I would hope an early time. inaugural address, set the tone and The policy of this country and this Ad­ As far as the second part of your question enunciated the goals of his administra­ ministration at this time wlll be to continue with regard to strategic arms talks, I favor to oppose Communist China's admission to strategic arms talks. Again it's a question tion-peace in the world and a healthy, the United Nations. ordered, compassionate society at home. of not only when but the context of those There are several reasons for that. First, talks. Yester~ay I believe he showed his de­ Communist China has not indicated any in­ The context of those talks 1s vitally im· termination and his ability to lead us terest in becoming a member of the United portant because we're here between two "forward together" toward these goals. Nations. Second, it has not indicated any major, shall we say, guidelines. On the one As a longtime friend, I hm of course intent to abide by the principles of the U.N. side there ls the proposition which is ad­ proud of the President for the dignified Char.ter and to meet the principles that new vanced by some that we should go forward and knowledgeable way in which he has members admitted to the United Nations with talks on the reduction of strategic assumed his high office--but of far wider are supposed to meet, and, finally, Commu­ forces on both sides. nist China continues to call for expeillng the We should go forward with such talks significance, I am delighted at the hope­ Republtc of China from the United Nations clearly apart from any progress on political ful prospects his leadership raises for our and the Republtc of China has, as we--I settlement and on the other side the sug­ people and for the entire free world. think-most know, been a member of the gestion ts made that until we make progress I ask unanimous consent that the text international community and has met its on political settlements, it would not be wise of the President's first news conference responslblllties without any question over to go forward on any reduction of our stra• be included in the RECORD. these past few years. tegic arms even by agreement with the other There being no objection, the text was Under these circumstances, I belteve it side. ordered to be printed in the RECORD, as would be a mistake for the United States to It ls my belle! that what we must do ls change its policy with regard to Communist to steer a course between those two ex­ follows: China in admitting it to the United Na.itions. tremes. It would be a mistake, for example, TRANSCRIPT OF PRESIDENT NIXON'S NEWS CON­ Now there ls a second immediate point for us to fail to recognize that simply re­ FERENCE ON FOREIGN AND DOMESTIC AF­ that I have noted and that ls the fa.ct that ducing arms through mutual agreement, FAIRS there will be another meeting in Warsaw. that falling to recognize that that reduction Ladies and gentlemen, since this ls my first We look forward to that meeting. We wlll be will not in itself assure peace. The war press conference since the inauguration, I interested to see what the Chinese Commu­ which occurred tn the Mideast 1n 1967 was can imagine there are a number of questions. nist representatives may have to say at that a clear indication of that. Consequently I shall make no opening state­ meeting whether any changes of a.ittltude on What I want to do ts to see to it that we ment and will go directly to your questions. their part on major substantive issues may have strategic arms talks in a way and at have occurred. a time that wlll promote, 11 possible, prog­ 1. LEGISLATIVE PROGRAM Until some changes occur on their side, ress on outstanding political problems at the Q. Mr. President. Sir, do you plan to make however, I see no immediate prospect of any same time, for example, on the problem of your own State of the Union Message and do change in our policy. the Mideast, on other outstanding problems you have a major legislative program to pre­ in which the United States and the Soviet sent to Congress this year? 4. MOST URGENT PROBLEMS Union acting together can serve the cause A. I shall have a major legislative program Q. Mr. Presldenit, what problems that you of peace. to present to the Congress this year. Wheth­ have to cope with do you feel require your er that would best be presented by a series most urgent attention? 6. PEACE IN THE MIDEAST of individual messages or a State of the A. Well, Mr. Ka.plow, the major problems Q. Mr. President, do you, or your Admin­ Union Message supplemented by some in­ with which I've been concerned tn this first istration, have any plan outside the United dividual messages has yet to be determined. week have been in the field of foreign policy Nations' proposal for achieving peace in the I wlll make a determination within the next because there only the President can make Middle East? two weeks after consultation with the legis­ some of the decisions. And consequently the A. As you ladles and gentlemen are aware, lative leaders. Security Council, as you ladles and gentle- the suggestion has been made that we have 1982 CONGRESSIONAL RECORD- SENATE January 28, 1969 four-power talks. The suggestion has also A. Here again, I think the semantics may judgeships which he inherited from Presi­ been made that we use the United Nations offer an inappropriate approach to the prob­ dent Eisenhower. as the primary forum for such talks. And, it lem. And, I would say that with regard to Dr. On the other hand, President Eisenhower has also been suggested that the United Kissinger's suggestion of sufficiency that that had withdrawn all appointments and then States and the Soviet Union bilaterally would meet, certainly, my guideline-and I proceeded to make new appointments, in­ should have talks on the Mideast, and, in think Secretary Laird's guideline-with re­ cluding some from the list thrut had been addition to that, of course, that the problem gard to superiority. withdrawn. I felt that the Eisenhower ap­ finally should be settled by the parties tn Let me put It this way: When we talk about proach was the more efficient way to handle the area. parity, I think we should recognize that wars it. We are going to devote the whole day on occur, usually, when ea.ch side believes it has I should point out that, among those names Saturday to the Mideast problem, just as a chance to win. Therefore, parity does not thrut have been withdrawn, I already know we devoted the whole day this last Saturday necessarily assure that a war may not occur. that some will be reappointed. But I felt that on the problem of Vietnam. We wm con­ By the same token, when we talk. a.bout the new Administration should examine the sider on the occasion of that meeting the superiority, that may have a detrimental whole list and make its own decision with entire range of options that we have. I shall effect on the other side, in putting it in an regard to whether the individuals that had simply say at this time that I believe we inferior pooltlon, and therefore giving great been appointed would serve the interests of need new initiatives and new leadership on impetus to Its own arms race. Our objective the nation, according to the guidelines that the part of the United States in order to in this Administration-and this ls a matter the new Administration was to lay down. cool off the situation in the Mideast. that we're going to discuss at the Pentagon With regard to the action that had been I consider it a power keg-very explosive­ this afternoon, and it wm be a subject of taken by the previous Administration on the lt needs to be defused, and I am open to any a major discussion in the National Security airlines, I received recommendations-or, suggestions that may cool it off and reduce Council within a month-our objective ls to shall I say requests-on the pa.rt of both the the posslblllty of another explosion-because be sure the United States has sufficient mili­ chairman of the House Foreign Affairs Com­ the next explosion in the Mideast, I think, tary power to defend our interests and to mittee, and the chairman of the Senate For­ could Involve, very well, a confrontation be­ maintain the commitments which this Ad­ eign Relations Co.mmittee---that this matter tween the nuclear powers-which we want to mln!stra.tlon determines are in the Interests be returned to the White House for further avoid. I think it's time to turn to the left of the United States around the world. I think. examination. now. sufficiency ls a better term, actually, than As you know, the President has authority 7. BUDGET REDUCTIONS either superiority or parity. In this field only where It involves Interna­ Q. Mr. President, could you tell us whether tional matters. Under the clrcumstances­ you've had a chance to examine the Johnson 10. CRIME IN THE CAPITAL slnce both chairmen were members of the budget, and whether you see any hopes for Q. Mr. President, you ,talked quite a bit other party, and since also I received sug­ reductions In the Johnson budget? during the campaign about crime in the gestions from a number of other Congress­ A. Yes, I have examined It. As far as hopes District of Columbia. We've had quite a bit men, both Democrat and Republican as well for reduction are concerned, the Director of of it since January the first, and I wondered as Senators, that this should be re-examined, the Budget has just Friday Issued Instruc­ how you propose to deal with lt. I brought it back for re-examination. tions to all of the departments to examine A. Mr. Healey, it's a major problem in the One other point that should be made. the budget In their departments very closely District of Columbia, as I found when I sug­ There ls no suggestion, in asking for a re­ and to give us recommendations as to where gested to the Secret Service I'd like