14786 EXTENSIONS OF REMARKS June 13, 1980 EXTENSIONS OF REMARKS

HUNT FOR A SCAPEGOAT seemed to run for cover in nearly all com­ of the physical silver he so prizes, Jarecki modities. was able to reduce his open short position The stock market suffered a sharp selloff on the Comex

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. June 13, 1980 EXTENSIONS OF REMARKS '14787 The Hunts had been under almost daily bought an estimated 20 million ounces in a On Friday. tht' nearby April contract margin pressure ever since silver began its range between $2.80 and $3.10 an ounce. closed at $12 an ounce. up from Thursday·s precipitous fall. At first, they met the calls Early in 1974, Hunt then acquired around $10.80. Sources said major industrial con­ by putting up cash, but a week before the 23 million ounces as the price edged up sumers were heavy buyers.e massive liquidations, they had taken to toward $6. That worked out to a total in­ turning over some of that beloved silver bul­ vestment of around $200 million. He's been lion. playing the market ever since, sometimes H.R. 7548 Last Tuesday afternoon, executives at selling, usually buying. At the peak earlier Bache telephoned W. Herbert Hunt in this year, the value of his silver holdings Dallas and once again asked for more was estimated at close to $3 billion. HON. ED JONES margin. On this occasion-for the "first Another difficulty in evaluating Hunt's OF TENNESSEE time in the 7 112-8 years that we've been silver position today is that he's got a busi­ IN THE HOUSE OF REPRESENTATIVES doing business with them," says a Bache of­ ness partnership in Bermuda with some Friday, June 13, 1980 ficer-the Hunts refused. "They just said Saudis. It's called International Metal In­ they weren't going to meet the call. We con­ vestment Ltd., and besides Hunt and his e Mr. JONES of Tennessee. Mr. firmed that again on Wednesday and ad­ brother Herbert, it lists as principals Ali Bin Speaker, on June 11, 1980, Representa­ vised them that we had no choice but to Moussalam and sheik Al-Amoudi, said to be tive En MADIGAN and I introduced a proceed with the orderly liquidation of their a member of the Saudi Royal family. The assets." That began, apparently, just before bill to amend the Farm Credit Act of latter's name popped up last week in con­ 1971. As I stated then, the new bill, noon on Wednesday. nection with an attempt by Hunt and his Earlier, Bache had gone through the friends to raise more than $3 billion via a H.R. 7548, differs in some respects Treasury bills which the Hunts had used as silver-backed bond. The group claimed that from H.R. 4782, which I introduced by collateral in their first purchases. Bache of­ it held between them more than 200 million request last year. ficers said they were unable to reach Her­ ounces of silver. The announcement of the H.R. 7548 is intended to improve the bert's brother Bunker, who was in Paris. launching of such a fund was the first clear operations of the Farm Credit System Even after Wednesday's sales, Bache had hint that Hunt had a cash problem. and strengthen the lending programs met its calls with the Comex clearing house The longer-term implications of the rout under the act. Furthermore, I believe by putting up its own money. That state of in silver are yet to be weighed and meas­ affairs apparently won't be formally re­ it will have broad support from major ured. But a favorite sport among specula­ farm groups and agricultural credit in­ versed until this morning's settlements, tors-follow the leader-may have been when it receives the proceeds from Friday's thoroughly discredited. Computerized trad­ terests. sales. ing systems, which take their cues from Following is a summary of the major While the forced liquidation of the Hunt watching averages over a period of time, ·provisions of H.R. 7548, with the holdings on Thursday panicked commodity could be hurting, owing to the Thursday's changes from H.R. 4782 in italics: and stock markets alike, Friday's selling was sudden massive selloff. H.R. 7548 taken in stride. Elliot Smith, Bache vice ContiCommodity's two funds-McLean president for commodities, described Fri­ 0) With respect to the eligibility of coop­ Futures Fund I ($5 million pool started in eratives for loans from banks for coopera­ day's sales by the firm as even heavier than December 1978) and II <$10 million, Thursday's. The dumping apparently in­ tives, reduce-from 80 percent <70 percent in launched last summer>-haven't been doing the case of rural utility cooperatives> to 60 cluded bullion on European markets. By the well of late. It's not clear whether the silver time the Comex closed at 2:15 p.m. Friday, percent-the minimum voting control of a debacle is to blame, but word last week was cooperative that must be held by farmers, the brokerage house had reportedly liqui­ that both would have to be liquidated. At. dated the last of its futures contracts held aquatic producers or harvesters, or eligible the end of last month, each $1,000 unit in cooperatives in order for the cooperative to for the Hunts. McLean I was down to $370-$380. The value Hunt, it is widely speculated, ran out of be eligible for loans; of McLean Il's $1,000 units had dropped to (2) Authorize Federal land banks to make company but never faltered in his convic­ around $320. If the unit price falls below tion that silver would go to $300 an ounce in loans in excess of 85 percent-but not in ex­ $250 ; Hunt sold 1.5 million ounces of the silver he What are the lessons in all of this? Cliches holds to a large bullion merchant to realize (4) Authorize the banks for cooperatives came crashing down on Friday: what goes to finance transactions for the exportation some cash. Did Mocatta Metals, which had up must come down; no one man is bigger to sell to him on the run up, buy from him of agricultural or aquatic products by than a market; prices finally must reflect American cooperatives that are borrowers at the bottom? And for the same reason? supply /demand fundamentals. One lesson Hard to say, since neither Hunt nor Dr. Jar­ from the banks, and provide other financial seems clear: never put influential members services to enable their member coopera­ ecki could be reached on Friday. Whoever of the Comex board in a cash bind, or bought was a canny shopper, for 1.5 million tives to participate effectively in foreign they'll work hard to change the rules markets for agricultural and aquatic prod­ ounces of silver was worth $60 million a against you. month ago; at Thursday's price of around ucts ; holds, but at a lower price) and what he market, but difficulty in meeting cash re­ <5> With respect to the production and took in the way of profits on the run up. quirements on schedule." harvesting of aquatic products- However, his original investments in silver Hunt went on to say that he viewed the authorize Federal land banks to make still look good. His first major acquisition of current state of affairs as temporary, and real estate mortgage loans to producers or bullion occurred in late 1973, when he intended to resolve "all areas of concern." harvesters of aquatic products; 14788 EXTENSIONS OF REMARKS June 13, 1980 authorize Farm Credit System institu­ ations to pay dividends to stock and partici- classification system, and salaries clarify that cooperatives engaged in to capital; sistence in connection with preemployment furnishing aquatic business services are eli­ <17> Provide that provisions of State laws interviews; gible to borrow from the banks for coopera­ that impose, with respect to a credit trans- authorizing the transfer of annual and tives. action, duties or requirements similar to sick leave for employees transferring from ( 6) Rewrite existing provisions of the Act those which have been or are imposed by Farm Credit System institutions to the relating to the availability of credit to other the Federal truth-in-lending statute, will Farm Credit Administration; financing institutions such as com­ not be applicable to credit transactions pri- (d) authorizing the Farm Credit Adminis­ mercial banks and agricultural credit corpo­ marily for agricultural purposes by (i) Farm tration to establish a retirement annuity rations from the Federal intermediate credit Credit System institutions and (ii) certain program to supplement the civil service an­ banks. The new provision would livestock credit corporations organized in nuity of its employees whose careers include permit OFis to discount loans for per­ conjunction with agricultural cooperatives prior service with banks or associations of sons and purposes eligible for financing by and eligible to discount with the Federal in- the Farm Credit System so as to achieve the production credit associations, e.g., aquatic termediate credit banks; and same level of benefit as would have been re- rural housing, and farm related business (18) Clarify the authority of Farm Credit ceived if their prior service were creditable loans and marketing and processing activi­ System institutions to set interest rates for purposes of the Civil Service Retirement ties in addition to loans for bona fide farm­ without limitation by State law and extend Program, all costs to be considered adminis­ ers and ranchers presently eligible for dis­ a similar exemption to certain livestock trative expenses of the Farm Credit Admin­ count with the FICBs; credit corporations organized in conjunc- istration; (b) assure that the FICB discount privilege tion with agricultural cooperatives and eli- increasing the daily rate of compensa­ is reasonably available to eligible banks and gible to discount with Federal intermediate tion for members of the Federal Farm agricultural credit corporations that credit banks. Credit Board from $100 per day to daily (i) are significantly involved in lending (19) Specifically authorize Farm Credit equivalent to the GS-18 rate; for agricultural or aquatic purposes, System institutions to sell to their members, (f) authorizing the Farm Credit Adminis­ (ii> have a continuing need/or supplemen­ on an optional basis, credit or term life and tration to acquire and dispose of property tary sources of funds, for agricultural and credit disability insurance appropriate to without regard to laws concerning acquisi­ aquatic loan requirements, protect the loan commitment, and other in- tion and disposition of property by the gov­ (iii) have limited access to national or re­ surance necessary to protect the member's ernment; and gional capital markets, and farm or aquatic unit, but limited to hail and (g) removing the present requirement that do not use FICB funds to expand fi­ multiple-peril crop insurance, title insur- the Farm Credit Administration be head­ nancing for parties and purposes ineligible ance, and insurance to protect the facilities quartered within the District of Columbia. for discount with FICB. and equipment of aquatic borrowers. When- • · (22) With respect to any election of a For purposes of these criteria an FICB ever the insurance is required as a condition Farm Credit district director, provide that may quired to give notice that the insurance need consist of the two candidates receiving the determine that an applicant for discount not be purchased from the institutions, but highest number of nomination votes, rather privilege will be considered as one with its could be obtained elsewhere. To provide in- than the three can­ subsidiaries and affiliates. surance services, system institutions would didates receiving the highest number of ( 7) Authorize the district Farm Credit be required to have the capacity to provide nomination votes; and Boards to extend to 10 years (from the pres­ effective service, and would be prohibited (23) Authorize presidents of Farm Credit ent 7 years> the maximum term for non­ from discriminating against any agent, System banks to designate persons to repre­ aquatic loans from production credit associ­ broker, or insurer, or any person who ob- sent them on interbank finance commit­ ations. tains insurance from a nona/filiated agent, tees.e (8) Require district Farm Credit Boards to broker, or insurer. The insurance program of adopt policies respecting programs for pro­ any institutions would have to be designed viding sound and constructive credit and re­ to assure that it will generate sufficient rev- ROLL CALL'S 25TH ANNIVERSARY lated services to young, beginning and small enue to cover all costs, and wili not have an farmers through coordinated programs of adverse effect on the bank's or association's production credit associations and Federal credit or other operations. Any institution HON. BALTASAR CORRADA land bank associations. Results of such pro­ that is offering, on the date of enactment of OF PUERTO RICO grams would be included in the Farm Credit the bill, insurance coverages not authorized IN THE HOUSE OF REPRESENTATIVES Administration's annual report to Congress. by the bill could continue to sell the cover­ <9> Authorize Farm Credit System institu­ ages for one year alter the date of enactment Thursday, June 12, 1980 tions to extend credit and other services to and service policies of such coverage until e Mr. CORRADA. Mr. Speaker, I persons in the Virgin Islands of the United their expiration; would like to take this opportunity to States; (20) Authorize Farm Credit System banks (10) Authorize Farm Credit System insti­ to organize corporations to perform func­ express my deepest appreciation to all tutions to invest or participate in loans with tions that the banks are authorized to dered the Hill community during the ticipate in loans with, lending institutions perform under the Farm Credit Act of 1971. past 25 years. outside the System; The corporations would be supervised by Throughout these years, Sid Yudain <11> Authorize production credit associ­ the Farm Credit Administration. Except as and company have accomplished one ations to issue participation certificates to to their franchise, these federally chartered of the most useful and important lending institutions outside the Farm Credit corporations would not be tax exempL tasks of our society with great respon­ System; (21) Make several changes in the law re­ <12> Authorize any Farm Credit System lating to the management and operation of sibility giving us and staff members institution to enter into general loss-sharing the Farm Credit Administration, including the opportunity to be informed on agreements with other System institutions; provisions- what is going on on Capitol Hill. (13) Authorize Federal intermediate credit ( a) authorizing the Federal Farm Credit Such an exceflent service and valua­ banks and banks for cooperatives to trans­ Board to set the salaries of the Governor ble information have been helpful to fer more than 25 percent of net annual and Deputy Governors of the Farm Credit us in our jobs. earnings to reserve or allocate surplus ac­ Administration, except that the salaries So it is with great pleasure, as the counts Authorize Federal land banks and sistence of the Governor and for candidates Roll Call to continue in the same Federal land bank associations to pay pa­ for appointment to that office; manner and with the same enthusiasm tronage refunds; authorizing the Governor to establish the great job they have been perform­ <15) Authorize Federal land bank associ- job position qualification requirements, a ing during the past 25 years.e June 13, 1980 EXTENSIONS OF REMARKS 14789 CEDAR BEACH gious worldwide organization is recog­ one of Washington's oldest and most nition of a lifetime of dedication to beloved institutions, Roll Call, Con­ HON. WILLIAM J. HUGHES the Lions Clubs International and his gress own hometown newspaper. For fellow man. the past 25 years, Sid Yudain, the OF NEW JERSEY Mr. Speaker, I know my colleagues founder, owner, editor, and publisher IN THE HOUSE OF REPRESENTATIVES join me in offering our congratula­ of Roll Call has amused, delighted, Friday, June 13, 1980 tions and best wishes to this outstand­ and educated Members of the Hill e Mr. HUGHES. Mr. Speaker, I have ing American as he assumes the presi­ with his informative articles with a the privilege of not only representing dency of this important organization. I light touch. the island community of Ocean City, am pleased to offer at this point an ar­ The influence of this weekly eight­ N.J., but also of making my home ticle from the recent edition of the Al­ page tabloid is great. At a time when a there. abama News Magazine in salute of Mr. great many forces work to divide the It is a lovely area and quite rich in William C. (Bill) Chandler. Members of Congress, Roll Call is per­ tradition and local lore. Not long ago, The article follows: haps the best and most visible illustra­ the south end of the island was desig­ BILL CHANDLER, THE PRIDE OF .ALABAMA'S tion that ultimately we are all part of nated as Cedar Beach by proclamation LIONS a single community-that institution of Chester J. Wimberg, the mayor of The Lions of Montgomery and Alabama known to all as the Congress of the Ocean City. will really have something to roar about United States. Cedar Beach has a long and interest­ come July 1. That's when one of their own, We wear many labels that tend to ing history. Originally settled by William C. Chandler, moves up as separate us from one another-be it president of Lions International, the world­ conservative versus liberal, Republican people from nearby Cumberland wide organization that represents 1,283,000 County at the turn of the century who Lions Club members in 151 countries. Chan­ versus Democrat, senior versus fresh­ were looking for a respite from the hot dler's installation as the world's number one man. Sid reports so eloquently and inland summers, Cedar Beach was Lion was made certain three years ago when heartwarmingly each week about the named for the large groves of cedar he was elected third vice president of Lions entire Hill family: Proving that Sena­ trees that grew on the beach. International. tors, Congressmen, staff, pages, in­ In fact, the original settlers of Cedar "It's going to be a great challenge and a terns, elevator operators, and janitors Beach were so taken with the area great opportunity ... and no doubt quite a are all an integral part of Capitol Hill learning experience," said Chandler, the life. Indeed, under the skilled orches­ that they tended to make life difficult general executive director of the Montgom­ for people from areas other than Cum­ ery YMCA. "I'll probably travel in 50 or tration of conductor Sid, Roll Call ini­ berland County to live there. more countries during my year as president. tiates friendly, intelligent cooperation Charlie Boice, an energetic and dedi­ Of course my purpose will be to build up at all levels of Congress. Its benefits cated resident of Cedar Beach, worked Lionism around the world. But I must say reach out to all Hill workers. with the neighborhood association to that I am also keenly aware that I am an This was Sid's intention from the give it back its historical identity. American. As president of Lions Interna­ start. At the time of its humble con­ tional I am prohibited from commenting on ception, June 6, 1955, he set forth the The name Cedar Beach was the partisan politics, but not so with critical original name associated with this issues," he said. basic premise of the infant paper. In area before greater development took As president Chandler will serve as the the first edition he stated: "Our aim is place on the island. It recalls a more chief executive officer of an association to create more interest in Hill activi­ simple time when the sand dunes were with 450 paid employees and a $25 million ties, to present a newspaper of such covered by cedar trees instead of budget. During his presidency he will likely concentrated appeal that it will be houses. meet with the heads of state of dozens of read from cover to cover, to inform I would like to take this opportunity nations, "not because of who I am, but be· neighbors and friends of illnesses, to salute Charlie Boice and the resi­ cause of the office I represent," said Chan­ births, marriages, and various personal dler. He already has a date with West Ger­ affairs of their cohorts, colleagues­ dents of Cedar Beach and congratu­ many's chancellor Helmudt Schmidt and late them for their persistence in the president of Mexico. without, of course, getting too person­ working for the special recognition Bill Chandler is a 54-year-old native of Au­ al-to remain completely nonpartisan their community deserves.e gusta, Georgia and a graduate of both Rice while reserving the right to kid the University and the University of Georgia. pants off both parties, always within He came to his present position with the the bounds of good taste, to provide a INTERNATIONAL ASSOCIATION Montgomery YMCA in 1948 and was quickly service to the Congressman and legis­ OF LIONS CLUBS told "to join the Lions Club." Since then he lative employees of Capitol Hill" • • • has become one of the most-honored Lions and Sid has done just that-unfailing in the world and a very prominent Montgo­ HON. RONNIE G. FLIPPO merian. The Montgomery Lions Club, of in his efforts to present political facts OF ALABAMA which he is a member, today ranks as the and satire with universal appeal. IN THE HOUSE OF REPRESENTATIVES lOth largest in the world. Among the proj­ At the time of Roll Call's beginning, ects annually conducted by the Montgom­ Sid was already a veteran to Hill life. Friday, June 13, 1980 ery club is the Blue-Gray Football Game. Hailing from Connecticut, he first e Mr. FLIPPO. Mr. Speaker, I am Chandler is married and the father of went to work as a special assistant for very proud to inform my colleagues three children. He will be the third Alabam­ his Congressman, Albert P. Morano. ian to serve as the head of Lions Interna­ This experience gave him the insider's that Mr. William C. Chandler, a distin­ tional. Birmingham attorney Roderick guished citizen of Montgomery, Ala., Beddow, now deceased, served in 1933-34 touch that is perhaps the greatest will assume the presidency of the In­ and former State Senator Aubrey Green of single reason for the success of Roll ternational Association of Lions Clubs York was president in 1963-64. There are Call. on July 1, 1980. 7,000 Lions in Alabama today.e Life on the Hill was quite a bit dif­ There is no need to remind my col­ ferent in those days. Perhaps because leagues of the tremendous contribu­ I have been on the Hill only 2 years tions that the Lions Clubs have made longer than Roll Call, I feel a particu­ throughout the years in their work ROLL CALL'S 25TH ANNIVERSARY lar closeness being able to parallel my with the handicapped. The Lions have political timing closely to that of Sid. long been in the forefront of the HON. JOHN J. RHODES In those days the Rayburn Building worldwide effort to help improve the OF ARIZONA was a parking lot; any staff member quality of life of individuals suffering IN THE HOUSE OF REPRESENTATIVES attempting to dine at the current loca­ with speech, hearing, and vision dis­ tion of the Longworth cafeteria found abilities. Thursday, June 12, 1980 himself in a garden; the rotunda res­ The installation of Bill Chandler as e Mr. RHODES. Mr. Speaker, this taurant was a warehouse; Watergate president of this important and presti- month marks the silver anniversary of was a quaint Pennsylvania Dutch

CXXVI--931-Part 11 14790 EXTENSIONS OF REMARKS June 13, 1980 pating t•stablishnwnt. and with the being hailed as "an event without SWEDES ARE STUNNED BY Hill employees numbering only about peer" will take place next Thursday. CRISIS 20 percent of what they do now, it June 19, at the Shoreham Hotel. Sev­ seemed like everybody knew just eral hundred of Roll Call's old faith­ HON. LARRY McDONALD about everybody else. fuls will be in attendance as well as a OF GEORGIA Congressional offices had only two dozen or more fans from this honor­ IN THE HOUSE OF REPRESENTATIVES rooms-one for the Congressman and able body and the world at large who one for the three or four person staff. plan a roast for Sid. Among the speak­ Friday, June 13, 1980 In those days lack of office space ers will be political satirist Mark Rus­ e Mr. McDONALD. Mr. Speaker, for never seemed to be a problem. sell, author Larry King, Assistant Sec­ decades now the country of Sweden That was how it was when that first retary of Education Liz Carpenter, has been held up by American liberals issue of Roll Call saw the light of day. "Ear" columnist Diana McLellan, and socialists as an example of how The first part-time office of the bud­ WJLA critic-at-large John Corcoran, big government and socialism with a ding paper was in a tiny corner of and family delegate to the roast, smiling face can bring peace and pros­ Albert Morano's office, at least for the Bernie Yudain. The congressional bi­ perity to a nation. Well it appears that first 1 V2 years or so. Even Roll Call partisan cast is scheduled to include socialism has finally reached its limits, itself has made some changes. Back in Speaker TIP O'NEILL, Majority Leader even in tolerant Sweden, and the those days it was free, but even so, ROBERT BYRD, Minority Whip BOB country is either going to have to rumor has it that Sid had to sneak MICHEL, Senator SAM HA YAKAWA, and reduce its socialism or start the down­ copies of the Roll Call into the Senate hill slide that socialism always brings. when a former official denied entry Representatives Mo UDALL and SIL CoNTE. Vocal entertainment will be As in England, this was recently into the Senate Office Building. brought home to the Swedes as a But, as the paper gained popularity provided by songstress Deidee Lane and Irish tenor Sean Wilson. The result of its trade union strike activity. and acceptance, things began to I commend this news item from the change. First, Albert Morano pointed Shieks of Dixie will also be on hand. London Daily Telegraph of May 12, out that it was coming down to a In conclusion, I wish to join with all 1980, to the edification of my col­ choice: his Connecticut constituents or of Capitol Hill in extending to Sid and leagues: Roll Call. The constituents won and, Roll Call a very "Happy 25th Birth­ after a brief stay in a back room of the day."e SWEDES ARE STUNNED BY CRISIS Capitol, Sid moved the paper to the Newspapers, serving Cook County, Ill., IRS to worry about.e this provision, and I hope that many 1.4792 EXTENSIONS OF REMARKS June 13, 1980 more will JOm in eliminating these serves to remind us both of his out­ her many sons and daughters in the time-consuming, disrupting, and mean­ standing career as a Member of the United States. May they remain faith­ ingless record votes, as well as giving House and of the loss this Congress ful to their quest of ridding the will the Speaker authority to delay votes will suffer through his departure. destroying grip of the brutal suppres­ on approval of the Journal until the It is in this regard that I hope the sion cast upon them. May they be end of legislative business.e House will soon act to extend this granted the knowledge that their honor to the gentleman from New years of independence will not be for­ Hampshire, our friend, JIM CLEVELAND. gotten. May they know that the thiev­ SOVIET OCCUPATION OF THE The text of the bill follows: ery of freedom will cease and that one BALTIC STATES H.R.- day tyrannical oppression will only be A bill to designate the United States Post a dark part of their past.e HON. LARRY WINN, JR. Office and Courthouse Building in Con­ OF KANSAS cord, New Hampshire, as the "James C. IN THE HOUSE OF REPRESENTATIVES Cleveland Building". GOLDEN ANNIVERSARY OF THE WESTERN LOS ANGELES RE­ Friday, June 13, 1980 Be it enacted by the Senate and House of Representatives of the United States of GIONAL CHAMBER OF COM­ • Mr. WINN. Mr. Speaker, Sunday, America in Congress assembled, That the MERCE June 15, marks the 40th anniversary United States Post Office and Courthouse of the military occupation and forcible building located at 55 Pleasant Street, Con­ HON. ROBERT K. DORNAN incorporation of Lithuania into the cord, New Hampshire, shall hereafter be Soviet Union. known and designated as the "James C. OF CALIFORNIA Cleveland Building". Any reference in any IN THE HOUSE OF REPRESENTATIVES Throughout modern history we have law, map, regulation, document, record, or been reminded of the tyranny of Rus­ other paper of the United States to that Friday, June 13, 1980 sification in Lithuania. We have wit­ building shall be held and considered to be a • Mr. DORNAN. Mr. Speaker, I would nessed the terror of Soviet extermina­ reference to the "James C. Cleveland Build­ tion practices and the grim exile of ing."e like to call to the attention of my es­ hundreds of thousands of innocent teemed colleagues the golden anniver­ Lithuanians to Siberian labor camps. sary of the Western Los Angeles Re­ Despite four decades of Soviet sup­ LITHUANIAN CAPTIVITY gional Chamber of Commerce, a dis­ pression the people of Lithuania have tinguished service organization which, persevered in their struggle for free­ HON. ADAM BENJAMIN, JR. since its inception in 1930, has grown to achieve recognition as one of the dom and self-determination. En­ OF INDIANA trapped by a savage and ruthless Com­ largest and most effective chambers of IN THE HOUSE OF REPRESENTATIVES commerce in southern California. munist regime, the Lithuanians have Friday, June 13, 1980 continued to fight for the most impor­ The organization was founded origi­ tant human values in life, including e Mr. BENJAMIN. Mr. Speaker, on nally by a small number of business­ the freedoms of speech and worship. June 15, the Lithuanian-Americans men and businesswomen as the I wish to express my admiration to will join with Lithuanians throughout Westwood Village Business and Pro­ all Lithuanians and their decendents the free world in observing a solemn fessional Men's Association. The group for their courage in the face of such and tragic moment in their history­ immediately addressed itself to im­ tragedies. Let us hope and pray that the military occupation and forcible proving the effectiveness and efficien­ the Lithuanian people's struggle for incorporation of Lithuania into the cy of the Westwood Village business freedom and independence may one Soviet Union and the subsequent de­ community by combating problems day culminate in enjoying the well­ portation of 300,000 freedom-loving such as overcrowding, poor telephone earned blessing of human liberty.e Lithuanians to Siberian labor camps. service, and poor mail service. The history of Lithuania is one of In continuing its dedicated service to great progress and heartbreaking set­ the community over the years, the JAMES C. CLEVELAND BUILDING backs, but its people have never lost Western Los Angeles Regional Cham­ sight of their goal of freedom and self­ ber of Commerce has worked hard not HON. JOHN J. RHODES determination. The people of Lithua­ only to aid the progress of business OF ARIZONA nia retain strong ties to their cultural growth in West Los Angeles, but also IN THE HOUSE OF REPRESENTATIVES past. They are endowed with courage to contribute toward the betterment admired by the United States and all of the entire area through its valuable Friday, June 13, 1980 of the free international community. community presentations and pro­ e Mr. RHODES. Mr. Speaker, I am Our Government has never accepted grams. today proud to be sponsoring a bill to the validity of the Soviet annexation In 1969, with the assistance of Dori designate the U.S. post office and of Lithuania. The recognition accord­ Pye, the chamber arranged the first of courthouse building in Concord, N.H., ed to an independent Lithuania in what would soon become the highly for Congressman JAMES C. CLEVELAND, 1919 has never been invalidated. As successful semi-annual Westwood who will shortly end his distinguished members of a free nation who prize Sidewalk Art and Craft Show, the career after having served nine terms self-determination, we must continue largest outdoor event of its kind in the in the Congress. to deny this Soviet affront to human United States. Although the organiza­ JIM CLEVELAND is not only one of the dignity. tion gained much recognition and ac­ finest public servants to have ever rep­ We have already pledged our deep claim for the success of the event, resented New Hampshire, but his lead­ support for the struggle of the Lithua­ their greatest gain was Dori who, fol­ ership and guidance have been a nian people with the unanimous pas­ lowing the art show, was hired to model for the Nation as well. sage of House Concurrent Resolution manage the chamber. With her instru­ JIM CLEVELAND has gained the re­ 200, which expresses the denial of mental help, the chamber undertook a spect and admiration of his constitu­ Soviet claims of citizenship of the major campaign to increase its effec­ ents for his diligent work in their Lithuanian people and the people of tiveness by increasing its membership. behalf. During World War II, the all the Baltic States. Our actions must This endeavor to increase member­ Korean war, and for 19 years in Con­ continue to inspire those who have re­ ship was so successful that the cham­ gress, JIM has tirelessly endeavored to mained faithful to the blessed ideals ber incorporated many more members, serve his country. of freedom we so richly enjoy in our first from the area immediately sur­ It has been a great honor and pleas­ nation today. rounding Westwood Village, and later ure for me to have had the opportuni­ In remembering this act of Soviet from the Westwood area. During this ty to know and serve with JIM during aggression in 1940, I honor the free­ process the group also underwent a his years on the Hill. His retirement dom-loving people of Lithuania and number of name changes: from June 13, 1980 EXTENSIONS. OF REMARKS 14793 Westwood Village Chamber of Com- lating this fine organization on the oc­ ment which recognized the right to merce to Westwood Chamber of Com- casion of their 50th year of dedicated free emigration. Had this right to emi­ merce, to the Greater Westwood service to our community.e grate been respected, there would Chamber of Commerce. And this have been no need for Iosif Mendele­ period also saw the inevitable expan­ vich, Aleksei Murzhenko, and Yuri Fed­ sion of the organization's offices from THE PRISONERS OF THE erov to have acted as they did 10 years their meager beginnings over a ham­ LENINGRAD TRIALS ago. Had they been granted the right burger stand to their present location of free emigration, they might have in a Wilshire highrise. Shortly there­ HON. STEPHEN J. SOLARZ spent the past 10 years in peace and after, the chamber was approached by OF NEW YORK freedom instead of fear and suffering. the West Los Angeles Chamber of IN THE HOUSE OF REPRESENTATIVES The others who acted with them a Commerce with the suggestion that decade ago have all been released. the two organizations merge, which Friday, June 13, 1980 Why must these three continue to pay they did, mandating yet another name • Mr. SOLARZ. Mr. Speaker, I would for something to which they should change. Their present membership of like to take this opportunity to restate have been entitled?e 800 makes it the second largest busi- my strong support for the three re­ ness association in Los Angeles. Dori is maining prisoners of the Leningrad now their president and I think her trials-Iosif Mendelevich, Aleksei ARGENTINA AND PRESIDENT record convincingly proves that there Murzhenko, and Yuri Federov. This CARTER'S GRAIN EMBARGO is no one finer for the job. Sunday, June 15, will mark the lOth Working closely with Dori is the anniversary of the arrest of these cou­ HON. ROBERT J. LAGOMARSINO chamber's 50th chief volunteer officer rageous men. OF CALIFORNIA and the first chairman of the board, Ten years ago, as I am sure many of IN THE HOUSE OF REPRESENTATIVES John Carmack. Under his direction my colleagues are aware, these three the chamber has continued to expand, men were among the members of a Friday, June 13, 1980 not only in membership, but in service, group who attempted to escape from e Mr. LAGOMARSINO. Mr. Speaker, dedication, and worthiness. Through the Soviet Union by hijacking an air­ the recent decision by the Argentine the combined efforts of Dori, John, liner to fly over the border to freedom Olympic Committee to boycott the and the other members of the execu- in Sweden. So desperate was their Moscow games is in sharp contrast to tive committee, many valuable and im- desire for freedom that they were will­ that country's refusal to support portant programs have been initiated ing to undertake even this very risky President Carter's grain embargo and developed to help the members of endeavor. They have paid a very high against the Soviet Union. Considering our community. price for their search for liberty, and the administration's antagonism to Within the organization, a program their failure has resulted in 10 years the Argentine Government, it is not was initiated to help bring top cham- of imprisonment. surprising that they did not go along ber leaders closer to new members Much has been said about the squa­ with the grain embargo. through the participation of the ex- lor of prison life in the Soviet Union One of the military officials-Gen. ecutive committee in the orientation and the almost absolute disregard for Omar Graffigna-of Argentina was process. At the suggestion of the the most basic human rights of the asked whether there was some incon­ chamber, Westwood Village merchants prisoners. Little enough comfort is sistency in that country's foreign and property owners joined together ever given, and even the most simple policy in its relations with the Soviet to purchase highly durable cement things required to meet human Union. He responded: litter containers, and voluntarily needs-such as food, or clothing, or These are two positions on two different funded a sidewalk cleaning program. medication-can be arbitrarily with­ issues. One position concerns the cereal The chamber ran a highly successful held. These three prisoners-Mendele­ grain boycott, in which our country adopted series of seminars by the socioeco- · vich, Murzhenko, and Federov-have a completely correct and politically wise policy, because we do not like anybody to nomic committee and the Small Busi- served their sentences in some of the pressure us or for someone from outside to ness Council, and started a business most severe and restrictive Soviet make decisions without consulting us. The newspaper featuring articles by top prison camps. They have suffered dep­ other position is also correct, and it was business leaders. rivation and ill health and they have adopted without any sort of pressure. Some­ The chambers' activities, however, been cut off from their families and times it is necessary to act in accordance often reach beyond the scope of busi- the world. Through all of this these with the development of events, since there ness in serving the community. They brave men have not lost sight of their is no rigid pattern in decisionmak.ing. work for all citizens through their convictions and have not given up I believe the Argentine position on housing supply task force, formed to hope that they will one day leave the these two issues is a logical result of develop innovative concepts for low- suffering behind and cross over to a their own perceived self-interest com­ and moderate-income housing on the life of liberty. bined with a sense of national pride, West Side. Offering their help to our We must not let ourselves forget tne demonstrating their independence and youth, the chamber presents the sacrifices of Iosif Mendelevich, Aleksei self-reliance.e annual job ops program, now in its Murzhenko, and Yuri Federov. As if seventh year, to allow high school stu- their own plight were not bad enough, dents the opportunity to explore possi- late last year Yuri Federov's wife and TRUTH-IN-TESTING ble career goals with area business and daughter were taken to KGB head­ professional leaders. And to honor the quarters in Kiev for a lengthy and un­ HON. WILLIAM F. GOODLING outstanding architectural achieve- explained interrogation. They were al­ OF PENNSYLVANIA ments in the area, the organization lowed to return to their home, but IN THE HOUSE OF REPRESENTATIVES presented, for the lOth year, its must now live with the memory and Annual Beautification Awards ceremo- fear of that incident in addition to Friday, June 13, 1980 ny. their worries about Yuri-their hus- e Mr. GOODLING. Mr. Speaker, as I The Western Los Angeles Regional band and father. reported in yesterday's RECORD (page Chamber of Commerce has been rec- The Soviet Union must not be al­ 14596, I am providing for the benefit ognized for its efforts by the National lowed to continue this harassment of of my colleagues a copy of the data I Chamber of Commerce which has ac- its citizens and the denial of their requested from the Educational Test­ credited it on two occasions. The citi- human rights. The Soviet Government ing Service. This data reveals the char­ zens of the West Side and I deeply ap- must not be allowed to forget the in­ acteristics of the test takers who re­ preciate all their hard work. I invite ternational conventions they have quested disclosure information on my colleagues to join me in congratu- signed, including the Helsinki agree- standardized tests under New York 14794 EXTENSIONS OF REMARKS June 13, 1980 State's so-called truth-in-testing law. order them. To illustrate. I list below the parable breakdown of t«~st-takers by ethnic As I noted in yesterday's statement, SAT averages from the March 22, 1980, ad­ group for the 1980 national administrations. the data show that the purported ministration. data from 1978-79 suggest that to date Ori­ entals may be over-represented in the popu­ benefits of the legislation may be un­ AVERAGE SCORES-NEW YORK lation requesting disclosure materials and intentionally accruing to those who Blacks possibly under-represented. need it least. The law actually appears Students sent Of those GRE test-takers reporting to be aggravating the already disad­ Test takers 1 disclosure income, 46.5 percent of those receiving dis­ vantaged position of those for whom materials 2 closure materials have incomes exceeding this legislation was designed to help. It $15,000 with 19 percent exceeding $25;000; Test: is clear from this data that much Verba l...... •.•...... 439 502 15.2 percent reported incomes less than closer scrutiny of the results of truth­ Math ...... •...... 485 564 $6,500. These percentages are roughly com­ in-testing law in New York State must TSWE ...... •...... 42 48 parable to those for all GRE test-takers in 1978-79. occur before Congress decides to con­ 1 March 1980. sider Federal involvement in the area 2 As of June 9, 1980. About 90,000 students registered for the Note.- The students receiving disclosure materials are included in the total GMAT in January and March; only about of regulating college admissions test­ population; thus, the averages for the total group are higher than they would 9300 have requested dis­ ing. The disclosure data follows: be otherwise. These averages are a conservative representation of the differences between the groups. closure materials. EDUCATIONAL TESTING SERVICE, The Graduate Management examination Washington, D.C., June 11, 1980. Of the approximately 31,500 who identi­ yields one score. We have data for approxi­ Hon. WILLIAM GOODLING, fied themselves by race in New York, 21,691 mately 7700 students from the January and Subcommittee on Elementary, Secondary, were white. Of that number, only 1272 (5.9 March administrations-. The average scores and Vocational Education, Rayburn percent) have had packets mailed to them. for two groups receiving disclosure materi­ House Office Building, Washington, Only 12 <0.8 percent> Black students out of als are similar to those in the national ad­ D.C. 1517 who took the test in New York and ministrations. DEAR CONGRESSMAN GOODLING: I am writ­ identified themselves as Black, have been ing in response .to your request for informa­ sent the disclosure materials, as have 2 tion about candidates who have requested Mexican American, and 6 Puerto Rican stu­ AVERAGE SCORES testbooks and/ or answer sheets as a result dents. 54 Orientals out of 538 so identified of the New York testing law which went <10 percent> have received the materials. into effect January 1, 1980. We have pre­ Students So far students from families with above Administration National receiving liminary data of the sort you request for average incomes are ordering the disclosure Population disclosure some of the testing programs; one might materials more than those from families materials think of them as "early returns" since we with low incomes. Of the 1088 SAT candi­ January, 1980 ...... 469 469 will continue to receive orders for disclosure dates who reported family income and who March, 1980 ...... 453 447 information. were mailed disclosure packets, 292 <26.8 Every program is treating the disclosure percent> reported incomes over $50,000; 56 1 Students receiving disclosure materials are included in the total population. requirement differently. As a result it is dif­ percent had incomes over $30,000; 14 per­ ficult to generalize about disclosure. cent had incomes below $18,000 and only 3 The large majority of GMAT students re­ <1) The Scholastic Aptitude Test percent had incomes below $9,000. Com­ questing disclosure materials are White, as disclosure information is available to students taking the SAT in New York in March had a smaller proximately 5,500 students provided infor­ test in New York state only. proportion, 30 percent below $18,000. The mation as to their ethnic groups: 4,347 are <2> The Graduate Record Examination attached chart shows those receiving disclo­ White; 275 are Black, 43 Mexican Ameri­ is available both to students tested sure materials as a proportion of various can/Chicano, 334 Oriental and 28 Puerto outside as well as inside New York state and income groups in the total population. Rican. While there are no directly compara­ to the public at large. They may order the In the GRE program, a total of 1129 <2.7 ble breakdowns for the 1980 national admin­ disclosure materials in three ways, either percent> have requested disclosure informa­ istrations, a look at the racial composition testbooks with answers, testbooks with tion: 697 test questions and answers only; of the 1977-78 administrations suggests that answer sheets, or answer sheets only. 426 tests and answer sheets; 6 answer sheets Blacks may be under-represented in the <3> The Graduate Management Admission only. In January, 41,418 took the GRE ad­ group receiving disclosure materials and Test is available to students tested ministration for which the test is disclosed. Orientals over-represented compared to ear­ outside as well as inside New York state. Some of the 1129 may not have taken the lier national populations. They may order disclosure packets from the out answer sheets are available to anyone. compiled. We will learn much more, I'm national administrations. The GRE aptitude test yields three scores: sure, as we monitor and analyze the re­ (4) The Law School Admission Test Verbal, Quantitative, and Analytical. Since quests for disclosure materials received over disclosure policy is similar to the many students requesting disclosure materi­ the next few months. GMAT. Students may order full disclosure als took the test in administrations other While we are in the process of analyzing packets from the national administrations. than January or have not yet taken it, we information by geographical region, I was (5) The Test of English as a Foreign Lan­ have score data on 435 students who re­ unable to assemble it across programs in a guage TEXAS New York in March, 1980. To date, 2130 1 The students receiving disclosure information are included in the total population. IN THE HOUSE OF REPRESENTATIVES orders have been received and 1787 have 2 As of June 9. 1980. been filled. Thus, only 6 percent of the eligi­ Friday, June 13, 1980 ble students requested copies of the test. We have racial/ethnic data on 331 stu­ The SAT yields three scores; Verbal, dents who have received the GRE disclosure • Mr. LEATH of Texas. Mr. Speaker, Math, and Test of Standard Written Eng­ materials. Of these, 260 are White, 20 Ori­ I rise today to pay tribute to an out­ lish . On all three, the average ental, 15 Black, 5 Mexican American, 3 standing Texan, Dr. V. D. Goodall of scores are higher for those who received dis­ Puerto Rican, and 4 Hispanic, with 20 list­ Clifton, Tex. The occasion for this tri­ closure packets than those who did not ing "other". While we have no directly com- bute is Dr. Goodall's receipt of the June 13, 1980 EXTENSIONS OF REMARKS 14795 University of Texas Ashbel Smith Dis­ medical system is an exception when it of great events, of a great plan of life tinguished Alumnus Award. comes to rural communities. worked out by a great people ... While Dr. Goodall has long been "Most communities are not large enough Woe be to the man or group of men that active in national, State, and regional to support a hospital, but must share a 're­ seeks to stand in our way in this day of high gional' hospital," he said. resolution when every principle we hold endeavors on behalf of his profession, But the situation is changing throughout dearest is to be vindicated and made secure his greatest contribution is that he the United States, Goodall said. The medi­ for the salvation of the nation. We are has led the effort to bring city medi­ cal system is expanding, and he feels that ready to plead at the bar of history. and our cine to the rural community he has soon Texas will have· a very comprehensive flag shall wear a new luster. Once more we served so long and well. system. shall make good with our lives and fortunes Mr. Speaker, one of man's highest "I think ultimately we'll have super-large the great faith to which we were both, and a satisfactions must be in knowing that hospitals, such as the one in Galveston, new glory shall shine in the face of our which will also serve as a teaching hospital. people. his life and career have made his com­ And then we'll have regional hospitals like munity better than he found it. Dr. those in Waco. Finally, there will be region­ This Saturday, I urge all the citizens Goodall can be certain he has done so al ones, like Clifton's, which will serve the of the United States to proudly fly for the Clifton, Tex., community. rural area." their flags and to refl~ct on the mean­ An article in the June 8 edition of The type of rural medicine also will ing and heritage behind our Stars and the Waco Tribune Herald is most en­ change, Goodall said. Stripes.e lightening, and I commend it to my "I think rural areas will become connected colleagues. in some way with a doctor or paramedic per­ The article follows: sonnel," he said. President Carter's rural THE PALO VERDE IRRIGATION health laws point in this direction, Goodall DISTRICT DIVERSION DAM, CLIFTON "CouNTRY DoCToR" AT HoME IN said, and he thinks it is a good system. CALIFORNIA The people in the rural areas need as RURAL SETTING much attention as those in the city, Goodall . Suffice it to say "If you want to know my personal impres­ gram at a level that even current proposals that the Soviet Union does not want to be sion, "I liked him very much." Richard Nixon, expressed great surprise occurred when we signed the Helsinki as well as you, have been frustrated by the when Khrushchev told him quite coldly, Agreement five years ago. I remember read­ lack of power. Now we may be tempted to "your grandchildren will live under Commu­ ing an article written in 1952 in which one wield power that we no longer have, and so nism" . It should be no surprise to us that we allowed Poland to fall under the Soviet syn . Even with this as belonging to England and France may take a very long time. In any case, let knowledge in hand, there are some people . In contrast, Khrushchev views and bolstered by our military and economic nation of World War II. I have shared with Nasser as a "self-contained and intelligent" strength. you certain conclusions of mine that result- June 13, 1980 EXTENSIONS OF REMARKS 14799 ed from a study of our recent period of his­ My amendment would add a new section were perceived as high." I think the evi­ tory, There were also some suggestions in­ to Paragraph 10526 of the Interstate Com­ dence is abundant and clear that deregulat­ cluded from a close study of this period. I merce Act-"Miscellaneous motor carrier ing all food products would not adversely submit them to you with all humility, and transportation exemptions." Products al­ affect small communities. with the hope that you will consider them, ready exempt under this section include or­ 5. I've heard some independent owner-op­ and that you might deem my suggestions of dinary livestock, a variety of unprocessed erators complain that adoption of the Fen­ sufficient worth to respond to them. food items, i.e. fresh vegetables and plucked wick amendment would eliminate the 13 Mr. President, I join you with my prayers chickens, and shellfish. Vehicles already percent fuel surcharge mandated by the for our country in the decade and decades exempt under this section include newspa­ ICC. Is this true and how will your amend­ that lie ahead. I join with you in prayers for per delivery trucks, farm vehicles, school ment aid these small businessmen of the our allies who are now free and who with buses, and taxicabs. My amendment would trucking industry? our support and with their courage, will exempt any "food and other edible product remain free. I pray, too, that we may be able (including edible byproducts but excluding When hauling items exempted under my to increase the presence of democracy on alcoholic beverages and drugs) intended for amendment the benefits of the fuel sur­ this planet earth. human consumption." It does not include charge would be lost. But the loss would be Sincerely yours, pet food or any other grocery items not in­ more than made up for by the ability of the Rabbi HERBERT A. YOSKOWITZ.e tended for human consumption. independents to compete in previously regu­ 2. Would the Fenwick amendment benefit lated commodities. The fuel surcharge is a consumers? 13 percent passthrough from the shipper to the independent based on the ICC-set tariff. THE CABRINI SISTERS Yes. The amendment would increase con­ Independents, after passage of my amend­ petition in the trucking industry-always a ment, would be able to haul all food prod­ healthy sign for consumers. But even more HON. JAMES H. SCHEUER the amendment would specifically cut cer­ ucts without "trip-leasing" to a regulated carrier. A trip-lease involves paying the OF NEW YORK tain costs of transporting the items to be deregulated. My amendment would help owner of ICC authority-in this case the IN THE HOUSE OF REPRESENTATIVES balance traffic flows and thus save fuel regulated carrier-anywhere from 25 per­ Friday, June 13, 1980 costs. For instance, today a trucker carrying cent to 40 percent of the tariff for the right tomatoes from Maryland to New Jersey for to haul regulated goods under the aegis of e Mr. SCHEUER. Mr. Speaker, I rise processing into soup cannot then pick up a the authority. Some carriers do not own a to celebrate the centenary of the Insti­ load of soup. With passage of my amend­ single truck but prosper by using indepen­ tute of the Missionary Sisters of the ment he/ she could. dents exclusively. After passage of my Sacred Heart of Jesus, familiarly In the 1950's, as additional agricultural amendment the independents could carry known as the Cabrini Sisters. commodities became exempt by court order, any food items without paying a regulated Named for Saint Frances Xavier Ca­ truck rates on these products fell by 19 to carrier what is, in effect, monopoly rent. Be­ brini, the institute continues the work 33 percent. A similar drop could be expected cause the regulated carrier would not be of .its namesake. Mother Cabrini High with passage of my amendment. Service, by skimming 25 to 40 percent off the shipper's the way, does not suffer. A recent survey of payment for services, the independent School and Cabrini Medical Center in poultry shippers rated unregulated carrier would, in my opinion and the opinion of ex­ New York City are only two examples service better than regulated service 95 per­ perts in the field, benefit financially with of the good work of the institute. cent of the time. Support from such groups passage of my amendment. Born in Italy in 1850 and having as Common Cause, Congress Watch, and 6. What about the charge that chaos al­ come to the United States in 1889, the Consumers Union, as well as almost every ready exists in the exempt trucking indus­ agricultural group, shows widespread con­ try? nun displayed VISion, compassion, sumer support for my amendment. hope, and courage in her efforts on Inflation is the greatest enemy of those Not true. A recent study done by the Uni­ behalf of immigrants, orphans, the citizens who are on fixed-incomes but there versity of Pennsylvania for the Department sick, and destitute. In 1946 she became are many thousands more who are merely of Transportation found that the intrastate . the first U.S. citizen to be canonized trying to keep their heads above water. trucking industry in New Jersey-which is by the Roman Catholic Church. In Food is the largest item in a family's budget unregulated-was stable and highly compet­ 1950, Pope Pius XII recognized her un­ and anything we could do to help out would itive. Rates in this market were, on average, selfish pioneering work and named her be most welcome. Transportation accounts 15 percent lower than rates for similar the patron saint of immigrants. for 5.2 cents out of every food dollar spent. transportation in the regulated interstate If this amendment succeeds we would be market. The study also found, again, that Saint Frances Xavier Cabrini died in able to save consumers anywhere from 13 unregulated service was equal to or better 1917. She left us a legacy of which we cents to $1.30 on every $50 purchase of gro­ than service provided by regulated carriers can be proud and from which we can ceries. It is a simple first step in the fight and is more profitable for the unregulated learn a great deal. against inflation. carrier. A majority of shippers and carriers 3. Didn't the Senate take action on a simi­ prefer the lack of regulation within New I congratulate the institute on this lar proposal when they considered their ver­ Jersey. anniversary and wish it many more sion of trucking deregulation? years of continued success.e 7. Won't expansion of the agricultural ex­ Yes, the Senate Commerce Committee emption result in decreased safety? adopted a virtually identical amendment to No. Safety provisions for the motor carri­ S. 2245. An effort to delete this amendment was defeated on the Senate floor by a vote er industry are under the purview of the De­ H.R. 6418 of 39 to 47. Thus, approval of my amend­ partment of Transportation and are unaf­ ment would concur with the action already fected by the status of ICC regulation or taken by the Senate. lack of regulation. The exempt industry cur­ HON. MILLICENT FENWICK 4. Wouldn't small towns suffer if the Fen­ rently has the same safety standards as the OF NEW JERSEY wick amendment is adopted and all food regulated industry and this will continue IN THE HOUSE OF REPRESENTATIVES products are exempted? with the passage of H.R. 6418. In addition, H.R. 6418 includes minimum insurance cov­ Friday, June 13, 1980 No. The bulk of small community service erage for operators as part of the fit, willing is currently provided by non-regulated and able requirement. This section of the e Mrs. FENWICK. Mr. Speaker, in the motor carriers. Furthermore, unprocessed past few days many people have called foods are presently exempt from ICC regu­ bill is administered by the Secretary of my office with questions concerning lation. What small town is bereft of fresh Transportation and provides for financial my effort to amend H.R. 6418, the fruits and vegetables? A Department of responsibility of $1-million for carriers­ Transportation study released last Novem­ whether regulated or exempt-engaged in Motor Carrier Act of 1980, to exempt interstate commerce. I might also point out all food products from Interstate Com­ ber characterized the service to small towns in Nevada, Kentucky, and New Mexico as that an individual with a rather large in­ merce Commission regulation. Here, "adequate" largely because of the service vestment in trucking equipment is more then, are a few of the most commonly provided by unregulated intrastate private likely to preserve his equipment in safe con­ asked questions and their answers: carriers. The service provided by regulated dition than a trucking firm which owns a 1. What exactly would your amendment carriers, the same study revealed, was "in­ number of trucks and the driver does not do? / frequent, slow, and often at rates which possess pride of ownership.e 14800 EXTENSIONS OF REMARKS June 11, 1980 IMPROVING COMPLIANCE WITH plicity and equity. Most of those indi- proposal are valid while others are THE TAX CODE WITH RESPECT viduals who testified on the issue self-serving or border on being demo­ TO INTEREST AND DIVIDEND agreed that a system which withheld gogic. However, together they present INCOME 15 percent of interest and dividend an insurmountable barrier to passage. income without any exceptions would So what, then, should we do? Should have been reasonably easy to adminis- we acquiesce in the tax fraud which HON. JOSEPH L. FISHER ter, especially in light of the fact that currently exists and the spirit of OF VIRGINIA the banks already report income and which could spread to other aspects of IN THE HOUSE OF REPRESENTATIVES dividend information to the IRS. How- the tax code? Or should we engage in Friday, June 13, 1980 ever, it also became clear during the a battle for withholding which cannot testimony that such an across-the- and probably should not be won? Or • Mr. FISHER. Mr. Speaker, a time for trying to balance the budget and a board withholding system would work should we look for some middle time for relieving individuals of heavy hardships on some of those individuals ground, which tries to achieve greater tax burdens is no time for honest tax­ who could least afford it. For example, compliance and which avoids some of payers to subsidize tax fraud by indi­ some retirees who depend on social se- the problems which the withholding viduals who underreport their interest curity, which is nontaxable, and divi- mechanism would encounter? I have and dividend income. Nevertheless, dend and interest income, which could chosen to pursue this constructive al­ this is exactly what is happening at be relatively small, would be subject to ternative in this middle ground, and it the present time. Today I have intro­ withholding even though they did not is the subject of the legislation which duced legislation, H.R. 7559, which have any tax liability. Although this I have introduced today. should go a substantial way toward withheld money would eventually be When I talk with people about this correcting this problem. returned to these individuals in the whole issue, one of the first things Earlier this year the administration form of tax refunds, their cash-flow that they say is "Why do we need proposed a system of withholding 15 situation, which is already in many withholding? Doesn't the IRS already percent of dividend and interest cases precarious, could be made unten- get that information from the banks?" income. In his testimony before the able. The answer is, yes, it does. But the Ways and Means Committee, Secre­ The Treasury proposed a number of IRS states that it does not have the tary of the Treasury Miller pointed ways to deal with inequities such as resources to follow up on the tax out that the IRS has determined that this one. Unfortunately, I believe that fraud which it strongly suspects is there is substantial noncompliance these solutions would make the with- occurring. Furthermore, it claims that with respect to the reporting by tax­ holding system unacceptably cumber- a complete followthrough-letters, payers of dividend and interest some and costly. One of the proposals phone calls, visits, litigation-would income. The IRS has in recent years designed to deal with overwithholding frequently exceed the amount of reve­ been able to cross check up to 80 per­ on retirees would have called for the nue which can be collected in individu­ cent of the 1099 forms-on which in­ filing of an exemption certificate in al cases. terest and dividend income is report­ the case of- It would seem reasonable, then, to ed-supplied to the IRS by financial married couples, filing jointly, at least one give the IRS greater resources to do institutions and corporations against of whom is age 65 and for whom, in both the job. Secretary Miller in his oral the tax returns filed by taxpayers. the prior and current year, interest and divi- testimony before the Ways and Means The IRS has estimated that 8 million dend income does not exceed $15,000 and Committee indicated that the Treas­ whose tax liability does not exceed 10 per- ury has estimated that sending out let­ of the total of 10 million mismatches cent of interest and dividend income. represent some degree of underpay­ ters to individuals suspected of under- ment of taxes already owed. In terms Although individuals in the IRS may payment would achieve a positive re­ of real dollars, this is quite a bit of be comfortable working with this for- sponse in about 50 percent of the money. The Treasury has estimated mula, I can easily picture millions of cases. Clearly this would not solve the that a withholding mechanism of 15 people making an extra trip to various problem completely. However, I be­ percent would increase revenues by $1 tax preparers to have their exemption lieve that it could result in a signifi­ billion in fiscal year 1981, $2.2 billion certificates filled out. Once this was cant increase in compliance at a rela­ in fiscal year 1982, and $2.5 billion in done, the financial institutions and tively modest cost. It is difficult to cal­ fiscal year 1983. It is important to corporations which would receive culate the exact cost to the IRS of no­ keep in mind that this increased reve­ these certificates would then have to tifying individuals of noncompliance nue would not result from an in­ go through substantial expenses in co- and following up on it. However, it is creased tax liability. Rather, it would ordinating them with the withholding hard to imagine any way in which the result from greater compliance with system. costs would not be substantially ex- an already existing tax liability. Fur­ This is just one example of the com- ceeded by additional revenue collected. thermore, many of these taxpayers plexities which would have to be At a 50-percent response rate to the who earn this interest and dividend added to the withholding system if .it · letters alone, the Treasury could still income are at a marginal rate greater were to be made more equitable. It is realize hundreds of millions of dollars than 15 percent and, therefore, it is true that we have a withholding in extra revenue in fiscal year 1981 reasonable to assurr e that the actual system on salaries, and this is manage- and over a billion dollars in both fiscal amount of unpaid taxes on interest able. However, whereas few individuals years 1982 and 1983. Furthermore, if and dividend income is substantially have more than two jobs, many people those individuals who underpay their higher than the Treasury's estimates have more than two financial accounts taxes on dividend and interest income of what can br: brought in through a which would be subject to withhold- in 1 year are notified that the IRS is withholding system. ing. What I sense with respect to with- aware of this underpayment, then the There is, then, a problem of noncom­ holding on interest and dividend percentage of voluntary compliance in pliance. However, from what has hap­ income is a system which stands a sub- the next year is likely to be greater. pened thus far in the Ways and Means stantial risk of falling of its own What, then, would my proposal do? Committee, it is clear that withhold­ weight. It would require that "to the maxi- ing is probably an inappropriate and ! also believe that withholding is an mum extent practicable" the IRS unrealistic way of dealing with it. unrealistic way of dealing with non- match up by July 15 tax returns with Although there was never a bill in­ payment of taxes on interest and divi- the 1099 forms which it receives from troduced which set out all of the de­ dend income because it is clear to me financial institutions and corporations. tails of the withholding proposal, that there are neither the votes in the If as a result of this match up the IRS enough was said about it to indicate Ways and Means Committee nor in determines that there is unreported that it set forth a classic dilemma of the House in general to pass this pro- interest and dividend income, then the tax policy-the tradeoff between sim- posal. Some of the objections to this IRS must send a letter to the taxpayer June 13, 1980 EXTENSIONS OF REMARKS 14801 in question within 60 days. This notice of the tax system will not allow this. Nor is it poverty; many Third World soci­ would state that the IRS has deter­ Millions of honest taxpayers in this eties, especially in South East Asia and Latin America, are richer than large groups mined that there is an underpayment country will not condone this. Fur­ of tax on interest and dividend in the West. Nor is it a sense of brother­ thermore, our budgetary situation will hood, as is evident from hostility or even income. It would indicate the amount not permit this. That is why I urge my conflict between aid recipients, such as of the underpayment, and would state India and Pakistan, Morocco and Algeria, that if the underpayment is not paid colleagues to give serious considera­ Ethiopia and Somalia and many others. within 45 days, there will be an addi­ tion and then to support the legisla­ Although small relative to the national tion to the tax equal to 100 percent of tion which I have introduced.e income of the donors, aid is often substan­ the underpayment. However, if the tial in relation to their payments deficits or taxpayer believes that the IRS deter­ budget deficits. Thus in 1978 U.S. foreign mination is erroneous, then he may ROLL CALL economic aid of $6.5 billion was almost one contest the IRS determination by sup­ half of the current account deficit and one­ plying the IRS with information sub­ HON. TOM LOEFFLER seventh of the federal deficit, when the weakness of the dollar, the world's principal stantiating adequate payment of taxes OF TEXAS reserve currency, was a major international on interest and dividend income. IN THE HOUSE OF REPRESENTATIVES concern. If the IRS has received 1099 forms Friday, June 13, 1980 And large-scale expansion of aid is persis­ from financial institutions and corpo­ tently called for. Witness the recent Brandt rations, but has not received a tax e Mr. LOEFFLER. Mr. Speaker, all report, perhaps the high water mark to date return from the people designated in the news that is news on Capitol Hill of the demand for massive official wealth the 1099 forms, then the following is always found in Roll Call. It is a transfers to the Third World, now renamed procedure would apply. The IRS wonderful source of information on the South. This report, commissioned by would send out a letter within 60 days people, politics, and upbeat events and UN Secretary-General Kurt Waldheim, was places on the Hill. I know we rely on it signed by five former West European Prime after July 15. This letter would indi­ Ministers the Washington Post, and S.S. Ramphal, individual. The amount of the under­ I would like to take the opportunity Secretary-General of the British Common­ payment would be determined by mul­ both to congratulate Sid Yudain on wealth. his 25th anniversary, and say thanks tiplying the amount of unreported MAJOR ANOMALIES for the tremendous job he does with income by 14 percent, which is the The case for aid is widely taken for grant­ lowest marginal rate. The notice Roll Call in gathering the news, and ed. This has permitted major anomalies. would state that if this amount is not dispensing it in such a great journalis­ Much Western aid has gone to oil-rich paid within 45 days, then there will be tic package. Roll Call is as much a part OPEC countries. It has also often been an addition to tax equal to 100 percent of Capitol Hill as sage brush is to west granted to both sides in a war (India and Texas.e Pakistan, Ethiopia and Somalia, Tanzania of the underpayment. However, if ap­ and Uganda, Algeria and Morocco). Large propriate, the individual could file a scale aid still goes to governments whose certificate with the IRS which would policies directly impoverish their subjects as be supplied in the notice of underpay­ THE HARM THAT FOREIGN AID for instance by forcible collectivization of ment and which would indicate that DOES farming, expulsion of the most productive the person was not required to file a groups, suppression of private trade and in­ tax return for that year, and there­ HON. ROBERT J. LAGOMARSINO dustry and restriction of the inflow of capi­ tal. fore, was not liable for any tax on the OF CALIFORNIA Foreign aid cannot contribute significant­ interest and dividend income. Of IN THE HOUSE OF REPRESENTATIVES course, if this individual fraudulently ly to its proclaimed purposes. It is indeed Friday, June 13, 1980 likely to obstruct them. The most durable filed this certificate, then he would be argument for aid has been that it is indis­ subject to the already existing penal­ e Mr. LAGOMARSINO. Mr. Speaker, pensable for reasonable Third World prog­ ties for tax fraud. The IRS would not I have long questioned the utility of ress. Yet many countries in South East Asia, be required to send these notices of foreign aid and suggested that interna­ Africa and Latin America progressed rapidly underpayment to officially tax-exempt tional trade and private foreign invest­ long before official aid. This particular ar­ organizations. ment are often more useful and more gument patronizes Third World people by But with respect to those individuals successful in advancing both the devel­ saying that they crave for material progess opment of Third World nations and but, unlike the West, cannot achieve it with­ who have filed tax returns and those out external doles. individuals who have not filed, the the foreign policy interests of the United States. Foreign aid cannot promote appreciably IRS is required to take appropriate the growth of the national income. Coun­ steps to follow up in those cases where I would like to call to the attention tries where government or business can use individuals have not responded within of my colleagues an article which ap­ funds productively can borrow abroad. The the 45-day period. peared in the June 9 edition of the maximum contribution of foreign aid to Finally·, section 2 of this bill sets Wall Street Journal, entitled "The growth cannot therefore exceed the avoided forth a statement of congressional Harm That Foreign Aid Does." I be­ cost of borrowing. As percentage of the na­ intent that the IRS be given adequate lieve this commentary presents sound, tional income of large Third World coun­ funding for the implementation of logical arguments on why foreign aid tries this maximum contribution is at best cannot accomplish the goals for which minute, a fraction of one per cent, far too this legislation. I believe that it would small to register in the statistics. be helpful to have this policy on the it is intended. The article follows: Any tiny, marginal benefit from the re­ record during the deliberations on the duction of the cost of investible funds is authorization and appropriation bills THE HARM THAT FOREIGN AID DOES likely to be much more than offset by the governing the IRS. During these delib­

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