HOUSE of REPRESENTATIVES-Thursday, May 8, 1969 the House Met at 12 O'clock Noon

May 8, 1969 CONGRESSIONAL RECORD- HOUSE 11865 HOUSE OF REPRESENTATIVES-Thursday, May 8, 1969 The House met at 12 o'clock noon. our prestige for peace as to risk the lives THE SOCIAL SECURITY ACT OF 1969 of young men in war." (Mr. VANIK asked and was given per­ DESIGNATION OF SPEAKER PRO mission to extend his remarks at this TEMPORE TAX PROPOSALS TO MEET FISCAL point in the RECORD and to include ex­ CRISIS OF THE CITIES traneous matter.) The SPEAKER pro tempore laid before Mr. VANIK. Mr. Speaker, I have intro­ the House the following communication (Mr. KOCH asked and was given per­ duced today legislation to amend the from the Speaker: mission to extend his remarks at this Social Security Act to provide a 15- MAY 8, 1969. point in the RECORD and to include ex­ percent. across-the-board increase in I hereby designate the Honorable HALE traneous matter.) monthly benefits with subsequent cost­ BOGGS, of Louisiana, to act as Speaker pro Mr. KOCH. Mr. Speaker, there is no of-living increases in such benefits and a tempore today. need to reiterate the dimensions of the JoHN W. McCORMACK. minimum primary benefit of $80. vast problems confronting urban Amer­ As a member of the Ways and Means ica, nor is there need to review the stag­ Committee. I have long been aware of gering costs of proposed solutions. On the need for benefit increases in this PRAYER the assumption, yet unproved, that the session of the 91st Congress. The cost­ The Chaplain, Rev. Edward G. Latch, American people will muster the politi­ of-living increases which have occurred D.D., offered the following prayer: cal will to mount an assault on those during the current inflationary spiral problems on an appropriate scale, we have nearly wiped out the benefits our Continue steadfastly in prayer, being must turn our attention to the devices watchful in it with thanksgiving .-Colos­ Nation's senior citizens received in 1965 available. and 1967. If we do not act to increase sians 4: 2. It should be reasonably clear that the O God, who art above us and yet within benefits this year, the country's retirees only realistic source of the funds re­ receiving social security benefits will be us in all reverence of mind and heart, we quired is the Federal Government with bow before Thee, acknowledging our de­ worse off than they were in 1965. its income tax. The deepest pool of During 1965, there was an increase in pendence upon Thee and offering unto wealth is at the Federal level but the Thee the loyalty and love of our hearts. benefits of 7 percent retroactive to Janu­ most intractable problems are at the ary 1965. In February 1968, a benefit in­ In this day when pagan forces would local level. The gap between local ex­ overwhelm us and a secular spirit would crease of 13 percent went into effect. Yet, penditures and local revenues has wid­ between January 1965 and February engulf our world, keep our honor bright, ened from $1.7 billion in 1946 to $17 bil­ our hearts pure, our minds clean, and our 1968, the cost of living rose 9.3 percent-­ lion in 1965. No wonder our cities face more than wiping out the gain of 1965. devotion to Thee and our country stead­ a fiscal crisis. fast and sure. Between February 1968 and March of this Today, I am introducing two bills year, cost of living has gone up another During these trying times when deci­ which I consider as alternatives in meet­ sions are made which will determine the 5.5 percent. April's increase is estimated ing this crisis. at nearly eight-tenths of 1 percent. This direction our Nation takes, help us to The first alternative is an Urban Rev­ maintain our integrity, to rise above per­ means that, since 1965, benefits have sonal ambition and to put first that which enue Sharing Act. It would establish gone up by 20 percent-cost of liv­ is first, the welfare of our country and the right of qualified urban areas to ing by 15.6 percent. Clearly, if we the good of our people. share in certain Federal income tax col­ do not enact increased benefits in Give to us the inspiration and the in­ lections set aside in a trust fund and 1969, over 24 million senior citizens rely­ dustry to continue to work for justice and divided on a per capita basis. Tax shar­ ing on social security will be in a worse peace and freedom both at home and ing would be conditioned on the consoli­ position economically than they were 4 abroad. dation or reorganization of governmen­ long years ago. In the spirit of Christ we pray. Amen. tal units in an urban area to promote co­ It is unconscionable for this Nation operation in attacking the problems for to allow its retired workers to fall deeper which the shared revenue 1s designated. and deeper into poverty, while the rest The second alternative is a bill allow­ of the country-using what the retired THE JOURNAL ing to an individual a Federal tax credit, generation has built-moves into greater The Journal of the proceedings of yes­ not exceeding 40 percent of the amount and greater prosperity. terday was read and approved. of State and local income taxes he has It is time, too, that we raise the mini­ paid during the taxable year. mum primary benefit. Is it little wonder The use of a Federal tax credit would that our retired citizens make up a vast­ enable State and local governments to ly disproportionate number of the Na­ STOP THE KILLING IN VIETNAM impose new income taxes or increase ex­ tion's poor. Of 15.2 million adult Amer­ pace with infla­ today. While this problem is far from to remind them of the rapid decline in tion and assure the elderly from loss of new it does seem oo have reached flood ·the number of newspapers in this coun­ purchasing power. proportions in recent months. try. We have gone from a time when each I was somewhat surprised to note that of our larger cities had at least half a THE ABM: EASILY FOOLED in his statement, Mr. Nixon failed to dozen newspaper::; to a situation where mention Public Law 90-200, which was many of our larger cities are lucky to United States de­ ucation and Labor Committee and as I case will seriously interrupt the free :flow veloped the MIRV, or multiheaded offen­ mentioned above, President Johnson of news in this country. Mr. Speaker, I sive missile oo render this Russian de­ signed the bill inoo law and appointed 18 urge prompt and favorable action on the fense useless. very distinguished citizens, headed by bill. Is there any reason to believe that im­ Dean William B. Lockhart, of the Uni­ mediately we install the present ABM versity of Minnesota to analyze the laws AN INCREASE IN SOCIAL SECURITY that the Soviets would not follow the pertaining to the control of obscenity BENEFITS THIS YEAR same course? As a matter of fact, I be­ and pornography and to recommend to lieve presently they have developed a the Congress and the President such (Mr. FISH asked and was given per­ three-headed nuclear attack missile. As legislative, administrative, or other ap­ mission to extend his remarks at this yet, each of the three heads probably is propriate actions as deemed necessary to point in the RECORD and to include ex­ not independently controlled like ours, regulate effectively the flow of the traffic traneous matter.) but our Safeguard system is installed, the in pornography. Mr. FISH. Mr. Speaker, I rise in dis­ Russians could well redesign their attack It was our hope then that the Commis­ belief that this Congress may not forth­ missiles so as oo render them able to pene­ sion would clarify some of the constitu­ with act on raising social security bene­ trate our defenses. tional problems which seem to hamper fits. I favor continued research. Meanwhile, effective regulaoory action in this area. President Nixon has called for a 7- why not delay installation, and if dis­ The Commission has been conduct­ percent increase in benefits. There is no armament negotiations with the Soviets ing inquiries into the whole complex need apparently for a payroll tax in­ fail, then come up with a better defensive problem and is expected to report its crease to finance these higher benefits. missile? Hopefully, that will not be nec­ findings in the very near future. I would This is, at best, only a stopgap measure, essary. But, as for now, I am convinced hope that the President would give seri­ but it is needed now. Personally, I would by the testimony that a delay will not ous consideration to the findings of the like to see a 10-percent increase in bene­ jeopardize our security and that our de­ committee's work for which $640,000 has fits. terrent strength will remain a safeguard been expended in this ft.seal year. It would Mr. Speaker, in:tlation hit new highs in against attack for the foreseeable future. seem singularly wasteful not to use this 11868 CONGRESSIONAL RECORD- HOUSE May 8, 1969 extensive research compiled after months CALCAV ing the Job of Secretary of the Treasury of study. (Mr. DICKINSON asked and was given on January 21. As cosponsor of Public Law 90-206 permission to address the House for 1 I also charge that the Secretary of the I would like to remind all Members that minute and to revise and extend his re­ Treasury and his agents have engaged in section 301 of this act, entitled "Pro­ a willful effort to mislead the Congress marks.) his hibition of Pandering Advertisements," Mr. DICKINSON. Mr. Speaker, I have and the American people about con.., signed into law by President Johnson on here a copy of a newsletter which ar­ tinuing financial ties to the Continental­ December 16, 1967, is designed to give rived in my office over the weekend. This Illinois National Bank of Chicago, Ill. every mail patron the means to prevent publication, entitled "Issues and Ac­ Mr. Speaker, it is my opinion that the the mailing to him of matter which in tions," supposedly is published by the Secretary of the Treasury has violated his sole judgment is objectionable. Un­ organization Clergy and Laymen Con­ both the letter and the spirit of a num­ der this section, the householder merely cerned About Vietnam-CALCAV for ber of statutes and Executive orders de­ notifies his local postmaster that he no short. signed to prevent conflicts of interest in longer wishes to receive any further mail Among other things, there is an item the Federal Government. from a particular mailer. The Post­ in this newsletter which advises that I cite in particular: master General then issues an order to CALCAV will stage a demonstration at Section 201 of title 18 of the United the sender, directing him to refrain from the Dow Chemical Co.'s annual stock­ States Code, which prohibits a person making further mailings to the complain­ holders meeting today, May 7, in Mid­ selected to be a public official from ac­ ant. The order will also require the send­ land, Mich. I wonder if these people plan cepting, receiving, or agreeing to receive er, his agents, or assigns, to immediately an action similar to that "spontaneous" anything of value because of official acts delete the names of designated address­ break-in staged for newsmen at Dow performed by him; ees from all lists owned or controlled Chemical Co.'s Washington office re­ Section 208 of title 18 of the United by the sender. If the mailer breaches this cently. States Code, which requires an officer order, the Postmaster General is given of the executive branch to refrain from the authority to request the Depart­ Mr. Speaker, another item in this participating in any matter in which he ment of Justice to petition the appro­ newsletter is extremely interesting. I has a financial interest; priate U.S. district court to compel the would like to quote from this item: Section 1003 of title 31 of the United sender to comply with the order. Due to CALCAV's lo~g-standing visibility States Code, which prohibits the Sec­ in supporting draft resisters and recently in retary of the Treasury from directly or Mr. Speaker, 170,000 complaints have sending Thomas Lee Hayes to Sweden to been made under this antipandering law work among deserters, the organization has indirectly being concerned or interested and as the provisions are better known several times within the last year been asked in carrying on the business of trade or this figure is expected to increase. to perform a unique and vitally important commerce; and I agree with Mr. Nixon's contention function. There are many men who, for a Executive Order No. 11222, issued by that criminal penalties are needed to halt variety of reasons, find themselves in the President Johnson on May 8, 1965, which the flow of salacious material. Obviously, military and discover that they are conscien­ prohibits Federal officials from engaging present laws are not adequate. Yet, we tiously opposed to all war or to the Viet­ in activities that create a conflict of in­ nam war in particular. Unable to secure a can act in such a manner and with such discharge from the military as a C.O. (there terest or create the appearance of a con­ enthusiasm that our best efforts will re­ is a provision for such discharge), they have flict. sult in a law declared to be violative of deserted rather than abandon their convic­ In recent days, there has been a flurry the first amendment by the Supreme tions. Some go into exile in Canada or Swe­ of activity at the Treasury Department Court and thus end up right where we den. There is, however, a considerable num­ designed to lead the American public started. ber for whom. exile is not an option. They and the Congress into believing that While it is politically wise to be on wish to remain in the United States and at there has not been and that there is not the same time do some form of meaningful record as against pornography, it is a work-to make some sort of social contribu­ now a conflict of interest between the better course of action to enact a law tion here. The only course available to such Secretary's public duties and his private which has teeth to be sure but more im­ men is to go "underground"; to go to a place financial arrangements. portant one which does the job. where they are not known and there assume But the facts are that the Secretary, For this reason I think that we should a new identity. CALCAV has assisted sev­ since January 21, has received more­ make use of the Lockhart Commission. eral men r~en tly in finding such a place to much more-in financial remuneration Surely they have spent more time on this live and work. Each time the need has arisen from the Continental-Illinois National problem than any Member of this House a place has been found within a reasonable Bank than he has from the Federal Gov­ period of time. But to be prepared to help or of the other body. At very least their deserters quickly, CALCAV would like to ernment in payment for his services .as recommendations ought to be heard. know persons around the country who would Secretary. In fact, his Federal checks Mr. Speaker, this is an area where I be willing to help such a person or persons. fade into insignificance against the mas .. know whereof I speak. When I was If you are willing to perform this service to sive sums that he has received from the elected to Congress in November 1958, these victims of the Vietnam war and are bank at a time when he was charged more than 10 years ago I came to Wash­ in a situation which would lend itself to with the responsibility of regulating that ington to do something about the prob­ providing a place to live and work with rea­ bank and with making recommendations sonable anonymity, please contact the na­ lem of filth which is especially acute in tional CALCAV office by mall. Also, if you on legislation directly affecting the wel­ the New York metropolitan area. I have know of someone in need of such a place to fare of that bank. studied this problem-I have discussed live and work, feel free to contact us. A cloud has been cast over the office of this problem with educators, clergymen the Secretary of the Treasury. With this of all denominations, and with concerned Mr. Speaker, it appears to me that this conflict of interest question unresolved, civil libertarians and with constitutional organization, by deliberately soliciting he is like a bird with a broken wing. His lawyers of the first rank. I can tell you help for military deserters, is in violation most simple official acts are being sub­ that this part of the law is a constitu­ of Federal law. Therefore, I have asked jected to doubt because of the manipula­ tional thicket if there ever was one. the Attorney General to look into this tions of his financial affairs as they af­ On the other hand, there is genuine situation and determine if legal action fect the banking industry. A dark shadow desire for action by Members on both is appropriate. hangs over one of the most important sides of the aisle. Our desire for effective offices of this land. legislation has the support of Members CONFLICT OF INTEREST-DAVID M. Later, Mr. Speaker, I will detail each of representing a wide spectrum of opinion. the financial plans that David Kennedy This is a problem which is not political, KENNEDY arranged with the Continental-Illinois sectional, racial, ethnic, or economic. The SPEAKER pro tempore. Under National Bank prior to taking office as Rather it affects every American in every previous order of the House, the gentle­ Secretary. These were arrangements that part of this Nation. man from Texas (Mr. PATMAN) is rec­ the Secretary planned to maintain while Mr. Speaker, it is my hope that this ognized for 1 hour. he held public office. These are irrefut­ Congress, working with the executive Mr. PATMAN. Mr. Speaker, I rise to able facts and I challenge the Secretary branch, can come up with an effective charge that David M. Kennedy has had of the ·Treasury to state one instance in solution to the problem. serious conflicts of interest since assum- which I am incorrect in these charges. May 8, 1969 CONGRESSIONAL RECORD- HOUSE 11869 But the arrangements with Continen­ Fourth, a profit-sha1ing plan worth at under each arm. He has dropped the tal-Illinois are not all. I have just dis­ least $650,000; and roosters, but he has not explained why covered that David Kennedy, at the time Fifth, a continuing life insurance and he was in the chickenhouse in the first he became Secretary of the Treasury, health insurance prog1·am with the place. held stock in the General American major cost to be paid by the bank. And the Secretary cannot escape the Transportation Corp., another one-bank In addition, Mr. Kennedy and his wife fact that he did maintain the iight to holding company in which the La Salle had more than 7,800 shares of Continen­ this stock outside of any trust arrange­ National Bank of Chicago is the subsid­ tal-Illinois National Bank stock which ment while he operated in his official iary. This has been kept a secret. The was to be placed in a "blind trust" with capacity as a public official. He cannot Secretary, unfortunately, has failed to the Old Colony Trust Co. of Boston with escape the fact that he did take official voluntarily reveal this despite his many instructions to "diversify" under pru­ actions as Secretary of the Treasury opportunities to do so. dent investment practices. But there is which directly affected the value of that This is the pattern of secrecy which no assurance that any large part of this stock. This, in my opinion, constituted Secretary Kennedy has followed since he stock will be sold. The likelihood is that repeated violations of section 208 of title assumed public office. His attitude has much of it will remain bank stock-a 18 of the United States Code. approached the arrogant. When a re­ totally inadequate insulation from con­ The exercising of options, the buying porter for the Wall Street Journal ques­ flict of interest. and selling of stock, also may. constitute tioned him on January 19 about how Mr. Speaker, these are the rough out­ a violation of section 1003 of title 31 of much stock he owned in the Continental­ lines of the bank-Kennedy benefit plan. the United States Code. Illinois National Bank, the then Secre­ But these surface details do not begin And now Secretary Kennedy's own tary-designate curtly replied: "I could to reveal the arm-in-arm link between General Counsel has injected a series of tell you, but I am not going to." the Secretary and the Continental-Illi­ new issues about this particular block of That has been Secretary Kennedy's at­ nois National Bank. stock. Point eight in Mr. Eggers' news titude not only to the press, but to the Secretary Kennedy's hired hand, Paul release states: Congress. Since January, I have given W. Eggers, issued his release last Tues­ Mr. Kennedy exercised the option and the Secretary repeated opportunities to day in which he made a great to-do within a few days thereafter sold all the discuss this matter and to reveal his about the sale of the 30,855 shares of shares so acquired. From my discussions with financial ties to the banks and to offer stock which Mr. Kennedy had obtained the people who handled this sale, I de­ any explanation that he might be able through the option plan. Mr. Eggers termined that this was an arms-length to provide. He has steadfastly refused. transaction. Mr. Kennedy has completely di­ gave neither dates nor the details of this vested himself of any interest whatsoever in The Secretary has, for all intents and transaction. He raised more questions this stock. purposes, pleaded with the fifth amend­ than he answered on this point. ment about his financial dealings with Mr. Eggers' news release paints the Mr. Kennedy decided to exercise his the banking industry. This subterfuge Secretary's sale of this stock as some option on this stock on January 22. And reached its high point last week when kind of voluntary and benevolent ges­ I am convinced that he did not sell these the Secretary of the Trnasury instructed ture. This is so much hogwash. shares "within a few days thereafter" his General Counsel, Paul W. Eggers, to As Secretary Kennedy knows, and re­ as alleged by the illustrious Mr. Eggers. issue a letter and a news release "clear­ fuses to reveal publicly, he intended to Also, Mr. Eggers states that he has ing" David Kennedy of conflicts of in­ hold the rights to this stock outside of discussed the transaction "with the peo­ terest. any trust arrangement. And the truth, as ple who handled this sale." Mr. Eggers, Mr. GERALD R. FORD. Mr. Speaker, Mr. Kennedy knows it, is that he was for some reason, does not state who these will the gentleman yield? doing this for the pmpose of avoiding "people" might have been. Mr. PATMAN. I cannot yield at this taxes. It was a pure and simple tax In recent days, some information has point. dodging scheme. It was a scheme entered come to me to explain the reasons for Mr. GERALD R. FORD. The gentle­ into and carried out when the Secretary this omission. It is my understanding, man from Texas is making some very was making pious statements about tax from good sow·ces, that the Continental­ serious charges. reform. Dlinois National Bank of Chicago, served Mr. PATMAN. I know they are, and He was avoiding taxes at the very time as the agent for the sale of this stock. I will be glad to yield after I finish my that he was instructing his aides to go In other words, the bank, from which we statement. before the Ways and Means Committee are told Mr. Kennedy has severed his This was a most amazing press re­ and say that this administration was for relationship, continues to serve as his lease, minus the most surface documen­ closing these loopholes. Why, he had one agent in business transactions. tation, and issued by the Secretary's own of the biggest loopholes in town. Also, Mr. Eggers omits the name of employee. He had, in other words, been He had to hold this 30,855 shares for 6 the pw·chaser of this stock. Could it be found innocent by a judge a.nd jmy months in order to take advantage of that the purchaser, likewise, is a bank composed of a man under his direct su­ that rich man's loophole--long-term trust department, in a well-known bank? pervision. If the subject were not so se­ capital gains. This was the little device Why is this essential fact left out? rious, this document would go down as that Mr. Kennedy will not discuss with And, more important, Mr. Eggers re­ one of the most ludicrous and self-serv - anyone. But I will state now, and I chal­ fuses to tell us when all of this took ing pieces of paper to ever be issued by lenge Mr. Kennedy to say otherwise, that place. What is the date and why is it so a Cabinet-level department. this was his intent-to dodge taxes. important that it not be revealed? But the issue is indeed serious and the In fact, Secretary Kennedy has ad­ Mr. Eggers' press release also states misstatements and the attempts to mis­ mitted this very fact in writing. that Secretary Kennedy has decided to lead cannot be left to stand as a substi­ Now, in the heat of the battle, Mr. Ken­ take his profit-shares from the bank in tute for the truth. Secretary Kennedy nedy has decided that it would be wiser the form of cash. This statement, like instructed his general counsel to utter to dispose of that stock and to forgo the the other, leaves many unanswered ques­ this statement when he knew full well wonderful benefits of long-term capital tions. that it did not represent the facts about gains. It is a fact that a plan was set up the arrangement which he entered into I am pleased that the Secretary is whereby Mr. Kennedy would take part of when he took office on January 21. going to pay his taxes and is willing to this profit-sharing benefit in stock in the Here are the benefits that Secretary sell this stock, but I think the matter Continental-Dlinois National Bank. And Kennedy and the Continental-Illinois would be much cleaner, much more pal­ this stock, 3,800 shares, was to be placed National Bank arranged: atable, if the Secretary would just stand in trust in such a manner that he would First, a stock option of 30,855 shares up, like a man, and state exactly what regain control of this entire block when of Continental-Illinois National Bank happened rather than depending on the he retired as Secretary. In other words, stock worth more than $1,200,000; misleading releases of his General Coun­ it was not to be diversified or sold except Second, a $200,000 separation gift; sel. As it stands now, the Secretary looks under the most unusual circumstances. Third, a pension of $4,800 a month for like a man caught running out of the Therefore, he planned throughout his life beginning on January 31, 1969; chickenhouse at midnight with roosters career as Secretary of the Treasury to .. 11870 CONGRESSIONAL RECORD- HOUSE May 8, 1969 have a continuing interest in the bank, omy. It is contemplated that the common holders approved, the application for the knowing that this stock would be there stock of Conill Corporation will be listed on corporate change would have to come to the Midwest Stock Exchange. upon his retirement from public office. Approval of this plan of reorganization re­ the Treasury Department for approval. Suddenly-and I think wisely-the quires a favorable vote of holders of two­ On February 7-only 11 days after the Secretary has decided that he cannot thirds of the outstanding shares of the bank. stockholders' approval-the Comptroller continue this arrangement. But ques­ In addition, consummation of the plan re­ of the CUrrency gave his approval to the tions remain. Under the profit-sharing quires rulings from various governmental formation of the Conill Corp., a one-bank plan of Continental-Illinois National agencies including the Comptroller of the holding company. The Comptroller of the Currency, the principal regulatory authority Currency, of course, works directly under Bank, Mr. Kennedy was required to de­ for national banks. cide, upon retirement-not at a later Your Board of Directors unanimously rec­ the supervision of the Secretary of the date-how he wanted to receive his ommends your approval of this plan. It is Treasury. shares in the profit plan. So, does this anticipated that in future years the broad I quote from section 1, title 12, of the mean that while serving as Secretary, he range of financial services needed to support United States Code, which outlines the did indeed hold these 3,800 shares? Or our complex economy will require capabili­ role of the Comptroller of the Currency : has the bank changed its plan to accom­ ties strengthening and supplementing those in traditional banking areas. After careful There shall be in the Department of the modate the Secretary of the Treasury? study, management ls convinced that a one­ Treasury a bureau (of Comptroller of the Unfortunately, Mr. Eggers did not give us bank holding company is the best means o! Currency) .... The Comptroller of the Cur­ any answers on these essential questions. serving present needs and meeting changing rency ... shall perform his duties under A few minutes ago, I mentioned that financial requirements of industry, govern­ the general directions of the Secretary of the it appeared that Secretary Kennedy's ment and the public. This new corporate Treasury. holdings of bank stock and the rights to structure will permit management increased So, for all legal purposes, the approval bank stock had constituted a violation flexibility in establishing new services utiliz­ ing the bank's expertise in the financial of the Conill Corp. was under the general of section 208 of title 18 of the United field. For these reasons, your Board of Direc­ direction of the Secretary of the Treas­ States Code. Again, let me emphasize tors believes that the proposed plan of re­ ury, David M. Kennedy. that this section, in substance, requires organization ls in the best interests of the Obviously, the one-bank holding com­ an officer of the executive branch to re­ shareholders of the bank and recommends pany device is a profitable one for the frain from participating in any matter that you vote in its favor. big banks. In fact, there would be no in which he has a financial interest. In urging approval we wish to make it reason for these banks to enter on such clear that your management has no specific As Secretary Kennedy well knew, the acquisitions presently under consideration an adventure unless it was indeed profit­ Continental-Illinois National Bank was and no present desire to diversify into enter­ able. Th.erefore, the formation of the one­ undergoing a major corporate change prises unrelated to the financial field. Our bank holding company greatly enhanced when this administration came into goal instead is to preserve and strengthen the value of Mr. Kennedy's stockhold­ office. Continental-Illinois was forming our ability to meet our customers' present ings in the corporation. a one-bank holding company, to be and future demands for financial services. On February 7, 1969, the day the known as the Conill Corp. In other words, A word about the stock option plan of Treasury Department approved the one­ the bank was taking advantage of a Conill Corporation. This plan, which is de­ scribed in detail in the proxy statement, bank holding company, the stock of loophole left in the 1956 Bank Holding does not increase the benefits to employees. Continental Illinois National Bank sold Company Act which allowed holding It is essentially the same plan which you for $45 %-its highest price since the in­ companies with only one bank a free rein approved in the past for the bank. Approval auguration of this administration. to move into a variety of nonbanking of the plan is recommended so that options In fact, the $45 % quote on February 7 businesses. At the time Secretary Ken­ can continue to be granted after consum­ was $3 ¥4 above the bid on the same stock nedy was appointed, as well as at the mation of the reorganization. the day Secretary Kennedy was sworn in. time he actually took office, nothing was Please sign and date the enclosed proxy and return it in the accompanying envelope In fact, Mr. Speaker, an analysis of more important to the Continental-Illi­ as promptly as possible. It is hoped that you the Continental Illinois bank stock sug­ nois National Bank than the successful will be able to attend the meeting and, if gests very strongly that it has moved up completion of the changeover in corpo­ you do, you may vote your stock in person if and down with the fortunes of the one­ rate structure. you wish. bank holding legislation pending before On December 13, 1968, David Kennedy, Our annual report containing a Consoli­ the Congress. as chairman of the board of directors of dated Statement of Condition as o! December To his credit, President Nixon indi­ 31, 1968, and a Consolidated. Statement o! cated that he recognized some of the big Continental-Illinois National Bank, Earnings for the year, will be malled to you signed a proxy statement and a letter to early in January 1969. problems being created by these one­ the stockholders of his bank announcing DAVID M. KENNEDY, bank holding companies. The White plans to form the one-bank holding com­ Chairman of the Board of Directors. House released a statement in which the pany. In this letter, Mr. Kennedy praised President said: Mr. Speaker, while the letter was signed the one-bank holding company device Left unchecked, the trend toward the com­ and talked about plans for the bank to "Chairman of the Board of Directors," it bining of banking and business could lead move into new services related to the was a fact that this same David M. Ken­ to the formation of a relatively small num­ financial field. I place a copy of this let­ nedy at that moment was tha announced ber of power centers dominating the Amer­ Secretary of the Treasury in the new ican economy. This must not be permitted ter in the RECORD: Nixon administration. In fact, the Presi­ to happen. It would be bad for banking, CONTINENTAL ILLINOIS NATIONAL dent-elect of the United States had in­ bad for business, and bad for borrowers and BANK & TRUST Co. OF CHICAGO, consumers. · Chicago, Ill., December 13, 1968. troduced him to the country the day To our shareholders: before in a televised press conference in Mr. GERALD R. FORD. Mr. Speaker, The notice and proxy statement for the Washington, D.C. would the gentleman from Texas yield? annual meeting of shareholders, to be held The Secretary-designate signed the Mr. PATMAN. I cannot yield now, I at 2 :00 o'clock p.m., Central Standard Time, letter to the stockholders knowing full will respectfully say to the gentleman on January 27, 1969, are set forth on the well that as secretary he would be re­ from Michican. Certainly I would want to following pages. quired to draft and comment on legisla­ yield to the minority leader. But I cannot The main business of the meeting will be to elect directors for the coming year and tion to control the very type of institu­ break the sequence of my statement. to vote upon a major plan of reorganiza­ tion which he was establishing. It was an After I finish, I shall be very glad to yield tion. Under the plan, your bank would be­ open secret in Washington and in the to the gentleman. come a wholly-owned subsidiary of a new banking community that such legislation Mr. GERALD R. FORD. Mr. Speak­ Delaware company, ConlU Corporation, in would dominate the Treasury Depart­ er-- which you would have the same ownership ment's activities before the 91st Con­ Mr. PATMAN. I cannot yield now. interest you now have in the bank. Your gre[ :;. Mr. GERALD R. FORD. Mr. Speaker, stock in the bank would be exchanged tax­ free on a share for share basis for common Secretary Kennedy was sworn in on would the gentleman yield? stock in Conlll Corporation. Conill Corpora­ January 21, 6 days before the stockhold­ Mr. PATMAN. I decline to yield at this tion would be a one-bank holding company, ers of his bank were scheduled to meet time. After I finish my statement I shall a corporate form which has recently been to ratify the formation of the holding be very glad to yield to the gentleman adopted by a number of leading banks to company. At this time, Secretary Ken­ from Michigan. meet the changing requirements of our econ- nedy was well aware that once the stock- But something happened to President May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11871 Nixon's high-sounding words at the represent them at the highest levels of Executive Order No. 11222, issued by the Treasury Department. The bill drafted the Federal Government. It was voted at President on May 8, 1965, was intended under Secretary Kennedy's direction fell a time when the bank knew that it would to deal with such a situation. That Ex­ far short of what the President's words have an application for a one-bank hold­ ecutive order made it plain that Gove1n­ would indicate. ing company before the Treasury De­ ment officials were to avoid anything The legislation, as proposed by Secre­ partment. It was voted at a time when that would "create the appearance" of tary Kennedy on March 24, would allow they knew that the Secretary of the a conflict of interest as well as avoiding bank holding companies great latitude in Treasury would be recommending and any specific statutory violation. entering nonbanking activities. Secretary lobbying on legislation to control the The Executive order is intended to re­ Kennedy's bill has been proposed in op­ one-bank holding companies. quire that employees of the Federal Gov­ position to legislation which I introduced And under all of these circumstances, ernment avoid any action which might to extend the restrictions of the 1956 we are supposed to believe that the result in or create the appearance of- Holding Company Act to one-bank hold­ $200,000 was simply a great benevolent First, using public office for private ing companies. gesture not tied to the future interests gain; Secretary Kennedy and others under of the bank. Second, giving preferential treatment his supervision have worked hard for the Mr. Speaker, this $200,000 has every to any organization or person; passage of the Treasury Department's appearance of a gift in \iolation of sec­ Third, impeding Government efficiency bill and for the defeat of my measure. tion 201 of title 18 of the United States or economy; Secretary Kennedy, of course, has ap­ Code which prohibits a "person selected Fourth, losing complete independence peared as a witness in support of his to be a public official" from accepting, or impartiality of action; legi$lation on two occasions. receiving, or agreeing to receive any­ When Secretary Kennedy appeared.be­ thing of value for himself. The Secretary Fifth, making a Government decision fore the committee on April 17, I told of the Treasury should not serve another outside official channels; or him: day with this $200,000 gift hanging over Sixth, affecting adversely the confi­ dence of the public in the integrity of I wm-ld like to point out that should the his head. definition of banking be broadened, as con­ Consider what kind of precedent this the Government. templated in the Administration's holding $200,000 would set for the Federal Gov­ Does Secretary Kennedy honestly feel he has lived up to the letter and the spirit company bill, the value of your stock in the ernment if it is allowed ~ stand. Under Conill Corporation-the Continental-Illinois the arrangement that has been accepted of this Executive order? Can he say that National Bank-will rise sharply. by Secretary Kennedy and his defenders, his arrangements with the Continental­ Mr. Speaker, I think this is a shame­ it would be all right for a $200,000 slush Illinois National Bank do not affect "ad­ ful situation. Here is a man who, as a fund to be collected and given to each versely" the confidence of the public in corporate officer, helped form a one-bank and every Member of Congress after he the integrity of the Government? holding company. He then moved into is elected. Such a fund would be no dif­ I think it is obvious that the situa­ the Treasury Department where h~ was ferent than what Secretary Kennedy has tions involving Secretary Kennedy touch in a position to infiuence either directly agreed to in accepting this $200,000 pay­ on both specific statutory prohibitions or indirectly the approval of the holding ment. Suppose every Federal official was against confiicts of interest and on company. He then was in a position to given $200,000 as a "going-away" present broader rules attempting to avoid the recommend and lobby for the legislation when he left a corporation to enter pub­ appearances of a confiict. that would prescribe the limits in which lic life. This cannot be allowed to stand Mr. Speaker, I hope it is plainly un­ his own one-bank holding company could if we are to have any respect for the derstood that I am not springing these operate. Federal Government. attacks on Secretary Kennedy without And much, if not all of this, was done And the nature of this payment can­ giving him adequate warning. When he at a time when the Secretary of the not be changed simply because someone was ready to be confirmed by the Sen­ Treasury had heavy financial interests calls it a "separation allowance." And it ate, I suggested the confirmation await in the bank. is no defense for the Secretary of the an opportunity to more thoroughly ex­ This is the kind of situation, Mr. Treasury to claim that "the amount is plore his ties to the banking industry. Speaker, which causes the American not revocable by the bank." On February 17, when he appeared be­ people to lose confidence in their Federal As I have mentioned earlier, the Sec­ fore the Joint Economic Committee, I Government. It is difficult, under this set retary of the Treasury has announced questioned him about the potential for of circumstances, for the man on the his intention to receive a lifetime pen­ conflict of interest. I received what I street to think that everyone is indeed sion of $4,800 a month beginning on consider to be a series of misleading receiving equal justice under the law. January 31 of this year. This sum is answers. I did not hear further from the Under these circumstances, it appears almost equivalent to his salary as Sec­ Secretary. that Continental-Illinois National Bank retary of the Treasury. This pension is Later, I wrote President Nixon, ex­ is in a position to be a little more equal given to the Secretary under the pen­ pressing my deep concern about the than anyone else. sion plan of the bank and it is rightfully Secretary's participation in the one­ Mr. Speaker, this is only the beginning his as an employee benefit. bank holding company legislation be­ of the evidence against Secretary It is rightfully his as a private citizen. cause of his associations with the Con­ Kennedy. But is it proper and is it right for Mr. tinental-Illin-0is National Bank. I place On January 10, when David Kennedy Kennedy to receive a bank pension while a copy of that letter in the RECORD. had his bags packed for Washington, the he serves as Secretary of the Treasury? HOUSE OF REPRESENTATIVES, board of directors of the Continental­ Can the Secretary receive a $4,800 Washington, D .C., February 20, 1969. Illinois National Bank met and voted the check from the bank each month and The PRESIDENT, The White House, Secretary-Designate a $200,000 separa­ render an objective arm's length judg­ Washington, D.C. tion allowance. This is to be paid when ment when the same bank's interests are DEAR MR. PRE.SIDENT: The forthcoming Secretary Kennedy leaves office. before his department? hearings on the Bank Holding Company The bank's board of directors voted Does he not feel a little touch of grati­ Act are of vital importance to every seg­ this $200,000 gift to a man who already tude toward the bank when he sees that ment of our economy and this once again had a $1,200,000 stock option, a $4,800 a check in the mailbox each and every r aises the serious problem of the banker in­ month pension, a $650,000 profit-sharing month? And surely the fact that the fluence at the U.S. Treasury Department. As you are aware, it would be normal plan, and 7,800 shares of the bank's bank continues to pay his life insurance procedure for the Treasury Department to stock. They did not want him to come and his health insurance does nothing make recommendations on these amend­ to Washington dead broke, obviously. to harm this friendly feeling. ments to the Holding Company Act and to This bonus of $200,000 cannot be justi­ Secretary Kennedy is the first bank comment on the various proposals. Likewise, fied. There is no excuse for it. It should pensioner to hold the office of Secretary normal procedure would involve consulta­ be revoked now, by both the bank and of the Treasury. It is a new precedent tion and approval of the Budget Bureau. Mr. Kennedy. for a department that has always had its However, all Administration officials in a posit ion to advise the Congress on this That $200,000 was voted by the bank's troubles keeping at arm's length from vital piece of legislation are only weeks away board of directors when they knew that the banking industry. from their jobs in the banking industry David Kennedy was going to be Secre­ If no other statute covers this problem which this legislation is designed to reg­ tary of the Treasury and in a position to of Mr. Kennedy's pension, I think that ulate and to restrict. 11872 CONGRESSIONAL RECORD- HOUSE May 8, 1969 In fact, the Secretary of the Treasury­ Company Act through a broader definition of Also, I have given his General Counsel, who would be expected to make the recom­ non-banking activities and by splitting the Mr. Paul Eggers, an opportunity to ex­ mendations of the Administration-partic­ regulation of the holding companies among his all the banking agencies. pand on letter and news release ipated in the formation of a one-bank which he issued last Tuesday. I requested holding company while he served as Chair­ If these reports are true-and they have m an of the Continental Illinois National not been denied by that anonymous Treas­ that Mr. Eggers appear for this purpose Bank of Chicago. He must now draft legisla­ ury official-then what we have is a back at 10 a.m. last Saturday. Mr. Eggers t ion and make recommendations which door assault on the existing regulation, rather declined. will, in effect, decide whether the very hold­ than a much-needed strengthening of the So, both the Secretary and his Counsel ing company which he formed will remain Holding Company Act. have refused to talk about the ties to intact. Mr. President, I am sure thait the All of this points to the extreme difficulty Continental-Illinois National Bank. of drafting legislation in a Department domi­ Secretary is a man of high integrity, but In making these charges, I do not in such a situation places him in an impos­ nated by people from the very industry that sible position where he must rule on his own the legislation purports to regulate. any way want to be in a position of handiwork. Therefore, Mr. President, in view of the criticizing the Senate Finance Commit­ The same situation exists when the mat­ extremely critical nature of this issue and tee which was forced to pass on these ter goes before Mr. Robert Mayo, your di­ its far-reaching impact on the entire econ­ nominations quickly so that the new rectoi:, of the Bureau of the Budget. Mr. omy, I respectfully urge you to withdraw the President might have his Cabinet avail­ Mayo, of course, was a vice-president of the Treasury Department and the Director of the able. It is traditional for the Senate Continental Illinois National Bank and pre­ Bureau of the Budget from direct partici· to give a new administration quick con­ sumably participated alongside Mr. Kennedy pation in this legislation. in forming the one-bank holding company. This may seem unusual, but there is, in­ firmation of its appointees. And under I understand that a great deal of the work deed, ample precedent in our system of gov­ this arrangement, the Senate Finance on the Administration proposal is being per­ ernment for such action. For example, a Committee did not have the opportunity formed by Charls Walker, the under-Secre­ judge is obligated to withdraw from con­ to explore all of these facets of Mr. Ken­ tary of the Treasury. Mr. Walker, of course, is sideration of a case in which he may have nedy's background. The Senate commit­ former executive vice-president of the Amer­ participated as an advocate before taking the tee did discover many facts and did throw ican Bankers Association, the lobbying orga­ bench. And certainly, Mr. Kennedy, Mr. Walk­ the spotlight on much of Mr. Kennedy's nization largely controlled by the big banks er, Mr. Volcker, and Mr. Mayo were advo­ which are now so interested in the one-bank cates for the banks-and bank holding com­ financial dealings. holding companies as a means of expanding panies-before they took their current ap­ Senator GORE, a member of that com­ their infiuence in the economy. Mr. Walker pointments. mittee, did require that the Secretary has had a close relationship with these banks I am sure that there are others in the eliminate Continental-Illinois National and has faithfully lobbied for their position Administration-not connected with banks­ Bank as his trustee and forced some on Capitol Hill. who could be drafted to work on this legis­ major changes in the handling of the Before he was appointed by you, I am lation and to bring forward your recommen­ stock option. Without these changes, the sure that Mr. Walker was in the process of dations to the Congress. The Federal Re­ situation would have been much worse preparing the legislative position of the ABA serve Board, of course, has direct responsi­ on the Holding Company Act and it is safe bility for the regulation of the registered than it is today. However, it appears to assume that this position was not con­ bank holding companies and I understand that Secretary Kennedy did not keep his trary to that of the large banks which have that this agency has already studied and pre­ word to Senator GoRE on the stock formed holding companies. pared extensive legislative recommendations option. I am not certain of the role of the other on this issue. As I understood it, Senator GoRE under-Secretary, Paul Volcker, in the holding The important thing, Mr. President, is that sought an agreement from Mr. Kennedy company talks in the Administration, but I we have legislation that truly protects the public interest and in which the public can that he would "either exercise or re­ assume that he will have a voice in the final linguish the option to purchase addi­ decision. Mr. Volcker, as you know, was vice­ have confidence. This issue involves much president of Chase Manhattan National Bank more than the narrow banking interests and tional Continental stock prior to taking of New York, which announced plans to form its resolution should not be left solely to the oath of ofiice." My information indi­ a one-bank holding company just 11 days be­ the bankers. It is something that affects the cates that this did not haippen. He de­ fore Mr. Volcker joined the Treasury. entire business community and the general cided to exercise the stock option after, The background of these policymakers per­ public. not before, he took omce. haps explains the confusion and constant You have the power to remove the cloud In any event, it would have been ex­ shifting which seems to be going on inside of suspicion that has arisen about the pend­ tremely dimcult for that committee to the Treasury Department on this vital issue. ing Administration proposals. I respectfully Trying to reconcile their past associations urge you to exercise it. have delayed the appointment under the and life-time careers in banking with their Sincerely, circumstances existing at that time. The current responsibilities, is, I am sure, a dif­ WRIGHT PATMAN. Senate Finance Committee did every­ ficult, if not impossible task, particularly on I thing that it could in the time allotted an issue as volatile as this. Mr. Speaker, also mentioned the to it. Originally, I had understood the Treasury problem of the Secretary's apparent con­ fiict of interest to a top staff member of The Constitution, of course, provides Department would send legislation on Bank safeguards in this situation. It provides Holding Companies to Capitol Hill before the White House. that any impeachment proceeding the Lincoln Day recess. Then later, I noticed On April 17, Secretary Kennedy ap­ in the press that the time table had been peared before the Banking and Currency against a Cabinet omcial shall be made in changed and that the bill would be forth­ Committee to testify on the legislation the House of Representatives. This is coming immediately after the recess, Feb­ that he had proposed on one-bank hold­ where the jurisdiction lies on the initia­ ruary 17. Later this was changed to Feb­ ing companies. I opened that session by tion of such charges when they become ruary 19 or possibly the 20th "at the latest." detailing some of his ties to the bank and necessary. So we cannot stand here today Now I understand that all of this scheduling and pass the buck to the Senate. If there has been changed to next week. asked .repeatedly that he comment on is an irreconcilable problem, we must I can only assume that there is some rapid these charges and give the committee any deal with it. rewriting and re-evaluation going on inside explanation he might have available. The When Mr. Kennedy was appointed in the Treasury Department. I notice in the Secretary replied, "No comment." press that there have been a series of "back­ The following week, April 24, Secretary December, he issued a statement at a ground briefings" extending over several Kennedy again appeared on the same news conference in Chicago in which he weeks by an anonymous official of the De­ piece of legislation. I reminded him that indicated he realized how sensitive his partment. It is my understanding that these I had made these charges the previous new position would be to the banking briefings have been taking place not only industry. The New York Times of De­ in the Treasury Department building, but week and I again gave him an opportu­ cember 17, 1968, contains this state­ also in the editorial rooms of some of the nity to reply. He did not do so. At this ment: nation's leading newspapers. Apparently, juncture, I asked that he furnish the there is a great effort to justify the Admin­ Banking and Currency Committee a de­ At a news conference in Chicago last Fri­ istration's position before it has a position. tailed financial report with particular day, Mr. Kennedy said it was his intention What has sifted out of these shifting po­ emphasis on any connections he might to "sever all connections with the bank." sitions has been discouraging and alarming. have with banks and bank holding com­ Many of us took this statement, printed The briefings have inspired reports that the Treasury Department wants to give total ex­ panies. To this date, he has not complied in one of the Nation's leading newspapers emption to all of the one-bank holding with this request. at face value. The folly of taking this at companies already formed. Much more seri­ And I understand that he told news face value soon became apparent. ous have been reports that the Administra­ reporters that he was "too busy" to com- Since that time, Secretary Kennedy tion would weaken the present Bank Holding ment on this issue. · has been less free with his comment..5 to May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11873 rePorters either in Chicago or Washing­ Chairman Long (D., La..), in which he ex­ Hickel's private financial interests and ton. They have elicited little more in­ plained his reservations about Mr. Kennedy. whether any of them could represent a con­ formation from the Secretary than has The Chicago banker "ls an estimable gen­ :flict of interest. But it's possible further tleman Of abllity and integrity," Sen. Gore hearings will have to be scheduled next week the Banking and currency Committee. said, "but I am troubled ••. because the pro­ in order for "everyone to be heard,.. sen. Many newspapers and wire services posed plan which Mr. Kennedy submits per­ Jackson said. have done an admirable job of pursuing mits a clear-cut con:flict of interest to re­ Such a delay could cause the senate to this issue. But two reporters in particu­ main." He added that "in the aura of grace vote on Mr. Nixon's other Cabinet choices, lar, Murray Seeger of the Los Angeles rightly extended an incoming President, the leaving Gov. Hickel for later. All alone, Times, and Fred Zimmerman of the Wall senate is a.bout to relent on a very vital in­ though, he'd be an easier target for extensive Street Journal, have refused to accept strument Of public policy-the traditional critical comments by the liberal Democrats safeguards against confilct of interest." who've been sniping at him all along. Secretary Kennedy's "no comment." Sen. Gore said the provisions of the pro­ In other actions, the Senate Commerce In a series of articles extending from posed trust are "superficial," because a vari­ Committee approved the nomination of the time of Mr. Kennedy's confirmation, ety of benefits, such as regular payment of Maurice Stans, New York investment banker, these reporters have laid out the facts dividends, will accrue to Mr. Kennedy, He to be Commerce Secretary and Massachusetts and have raised basic questions about said, also, that Mr. Kennedy proposes after Gov. Volpe to be Secretary of Transportation. the Secretary's continuing ties to the confirmation to "purchase large additional The full Senate plans to act on the Nixon stock holdings" in the bank through a stock­ Cabinet appointments Monday or Tuesday. Continental-Illinois National Bank. The option plan, "of which he doesn't propose to press' role is essential in a situation where a high public official refuses com­ divest himself ... it being his intention, I [From the Wall Street Journal, Jan. 20, 1969] believe, ultimately to place such stock in SPEEDY SENATE VOTE SEEN TODAY FOR MOST ment. said trust after capital gains tax treatment OF NIXON'S CABINET-INTERIOR SECRETARY Without the work of these two re­ can be accorded" to it. DESIGNATE HICKEL Is THE ONLY AP­ porters and their newspapers, I think Sen. Gore said that in "respect for Mr. POINTEE WHOSE STATUS REMAINS CLOUDED Kennedy and for his privacy" he wasn't dis­ even greater violence would have been WASHINGTON.-Nearly all Richard Nixon's done to the conflict of interest statutes. closing details or exact amounts of the stock holdings, but he added it might become nec­ Cabinet appointees probably will be con­ in RECORD Mr. Speaker, I place the at this essary to do so "in order to place this vexa­ firmed in a speedy Senate vote this after­ paint two sets of newspaper articles, one tious problem, which doesn't relate to Mr. noon, shortly after the inauguration. printed in the Wall Street Journal, and Kennedy alone, before the Senate." The only one whose status remains clouded a second in the Los Angeles Times. They The Senator said he sympathized with Mr. is Alaska Gov. Walter J. Hickel, the Interior Kennedy's problem in trying to devise a Secretary-designate and the most contro­ lay out this case from A to Z: versial of Mr. Nixon's Cabinet choices. Op­ [From the Wall Street Journal, Jan. 17, 1969] satisfactory arrangement, but added: "Re­ gretably, I must insist that there be no ponents may delay his confirmation today so SENATOR GORE THREATENS CONFmMATION confilct of interest between the Secretary they'll have time to make speeches urging FIGHT OVER DAVID KENNEDY'S BANK STOCK­ of the Treasury and personal bank stock him to be more conservation-minded, but he HOLDINGS holdings." almost certainly will be approved later this WA.SHINGTON.-Sen. Gore threatened to In the Interior Committee hearings, Sen. week. :fight the confirmation of David Kennedy as Jackson sought to nail Gov. Hickel to a Besides Gov. Hickel, the only appointees Treasury Secretary unless the Chicago banker commitment that he would continue the who haven't yet been cleared by appropriate removes what Mr. Gore called a "clear-cut Federal land freeze in Alaska as head of the Senate committees are Secretary of State­ confilct of interest" involving his large hold­ Interior Departnient. Saying that Congress designate William P . Rogers, a New York ings of bank stock. likely would settle the land claims of Alaska's lawyer and former U.S. Attorney General, The Tennessee Democrat's objections to natives within the next two years, Sen. Jack­ and Postmaster General-designate Winton Mr. Kennedy's proposed. trust arrangement son asked, "Can we keep the freeze (for that Blount, an Alabama contractor who currently for the stock clouded the status of the Treas­ period) so that we can legislate without a heads the U.S. Chamber of Commerce. These ury Secretary-designate, who had been feeling of undue haste?"' two aren't expected to have any trouble, how­ thought assured of swift confirmation. Mr. Hickel said Alaska needs land to build ever; the Senate committees probably will At the Senate Interior Committee hearing airports, roads and other public projects. But, approve them quickly and informally after where Interior Secretary-designate Hickel he said, "I would abide by your wishes the nominations actually have been received spent his second day in the witness chair, except for unusual situations." from the new President. the Alaska governor committed himself to On Friday, the Senate Finance Committee maintaining most of the land freeze im­ NOT SURE WHAT HE MEANT voted unanimously to recommend approval of posed by outgoing Secretary Udall--or at Following yesterday's session, Sen. Jackson Treasury Secretary-designate David M. Ken­ least gave Chairman Jackson (D., Wash.) said he thought Gov. Hickel's reply meant nedy, former chairman of Continental Illinois the impression that he had. The freeze, im­ that we would basically maintain the status National Bank & Trust Co., Chicago. The vote posed. in 1962 to protect the land rights of quo in Alaska until Congress could act. The came after a lengthy closed meeting in which Alaskan Indians, Eskimos and Aleuts, has Washington Democrat also indicated. a will­ Mr. Kennedy agreed to revise the terms of a prevented the state from taking title to some ingness to allow oil and gas exploration on proposed trust into which he plans to put his 86 million acres of Federal holdings to which the disputed land-an action Mr. Hickel has substantial holdings of Continental Illinois it's entitled. under the 1958 Statehood Act. argued for as Alaska's chief executive--pro­ stock. Treasury Secretary-designate Kennedy has vided that any revenues would be held in Mr. Kennedy's initial trust plan has been invited to appear before a closed session trust until the share for natives could be prompted objections from Sen. Gore (D., Of the Senate Finance Committee at 10 this determined. Tenn.) that Mr. Kennedy would have a "clear­ morning. That committee, of which Sen. However, the chairman said some Demo­ cut conflict of interest" as Treasury Secretary. Gore is third-ranking Democrat, must vote cratic members of the committee still aren't At the committee meeting Friday, Mr. Ken­ on Mr. Kennedy's confirmation. totally certain of what the Secretary-desig­ nedy agreed to find an "independent" trustee At today's meeting the committee presum­ nate had promised to do. Consequently, the to replace Continental Illinois, as it is that ably will hear Sen. Gore's objections and committee will study a transcript of yester­ bank's stock that would be held in trust, Mr. Mr. Kennedy's response, and then vote tenta­ day's testimony and seek to clarify the issue Kennedy told reporters he originally had cho­ tively on whether to approve Mr. Kennedy­ when Mr. Hickel returns today for his third sen his bank as trustee " because I'm familiar as well as California Lt. Gov. Robert Finch, day of testimony, he said. with the high quality of our investment serv­ the proposed Secretary of Health, Education Sen. Jackson, describing the governor as ices. Now I've go to trust someone else with and Welfare. "responsive" to questions during the first my life's work." CHANGE IN TRUSTEE two sessions, declared himself "generally He also agreed to "instruct" the trustees One source suggested that, to allay fears satisfied" with his answers so far. This would to diversify his holdings as soon as it could be of a confilct of interest, Mr. Kennedy may seem to strengthen earlier forecasts of Gov. done "prudently." Mr. Kennedy later told assure the committee he will find a different Hickel's eventual confirmation. reporters, "that would have been done any­ trustee. According to Sen. Gore, Mr. Ken­ POSSIBLE LENG'I:HY HEARINGS way, of course. It's just good investment nedy's intended trustee is Continental Illi­ Nevertheless, there's a possibility that policy to diversify." nois National Bank & Trust Co. of Chicago-­ lengthy committee consideration of Mr. He refused to say how much bank stock he the bank from which Mr. Kennedy intends Hickel's qualifications could lead to the new owns. "I could tell you," he said, "but I'm not to resign as chairman, and it's that bank's Republican Administration's first embarrass­ going to." Almost all of his portfolio consists stock he is placing in trust, Mr. Gore said. ment by the Democratically controlled of Continental Illinois stock, he said. Sen. Gore examined. Mr. Kennedy's state­ Senate. Mr. Kennedy also agreed that before he ment of assets and proposed trust arrange­ In addition to further testimony from the become Treasury Secretary he will notify the ment--furnished privately to the committee governor, conservation groups and individ­ bank whether he intends to exercise his option -and then the two met for an hour yester­ uals desiring to speak on Mr. Hickel's fitness to purchase 30,000 of the bank's shares. day. have yet to be heard. The committee will Gov. Hickel, from all indications, will be Following that meeting, the Senator re­ begin hearing these witnesses today and meet endorsed quickly by the Senate Interior Com­ leased a three-page letter to Committee in closed session tomorrow to consider Mr. mittee this morning. This would open the 11874 CONGRESSIONAL RECORD ~HOUSE May 8, 1969 way for action by t}le full.Sep.ate today along the Banking Committee's hearing on hold­ these circumstances, it ·would· be extremely with other Nixon choices. However, Senate ing-company legislation. naive to say that you have no interest in rules p·erll).it a single member to delay voting The session was marked by tense and bitter the value of that stock at this moment." on any of the nominations, and at least one ·exchanges between the Treasury Secretary Mr. Patman also said he had learned that or two Senators are likely to move for such and the Banking Committee chairman. Mr. Continental Illinois has prolnised Secretary a delay. Kennedy was appearing to testify in behalf Kennedy "future financial remuneration of Republican committee members pressed of the Administration's bill, but the tough a sizable sum, something on the order of Chairman Jackson (D., Wash.) unsuccess­ tone of Chairman Patman's opening state- $200,000." He said Mr. Kennedy would be fully for a vote at the close of an unusual ment overshadowed the hearing. . paid the money when he left office. Saturday hearing, at which Gov. Hickel's When Mr. P atman had finished reading the Additionally, Mr. Patman said that last financial holdings were reviewed in public statement, Secretary Kennedy responded to Jan. 31 Secretary Kennedy began receiving and private sessions. After the meeting, Sen. the allegations by saying, "I have no com­ from the bank a pension of nearly $5,000 a Jackson once again indicated he could see ment, Mr. Chairman. None at all. None at month, "or roughly equivalent to your sal­ no reason for opposing Mr. Hickel's appoint­ all. Go ahead and interrogate. I have no com­ ary from the Federal Government." ment. But he was keeping the proceedings ment." Chairman Patman declared that if the open, he said, until the committee could re­ Following the hearing, Mr. Kennedy told a legal definition of the banking business -is ceive still more information from Alaskan reporter "no comment" when asked if Mr. "broadened, as · contemplated in the Ad.:. officials about possible oil leases granted by Patman's discussion of the Secretary's finan­ ministration's holding-company bill the the state's natural resources commissioner, cial situation was accurate. value of your stock in Conill Corp.-the Con.: a Hickel appointee. SECRETARY'S FORMER BANK tinental Illinois National Bank-will rise The chairman also disclosed that Mr. sharply." Mr. Patman noted that Mr. Kennedy is the RESOLVING THE CONFLICT Hickel, after closed consultations with the former chairman of Continental Illinois Na­ committee, had agreed to sell personal busi­ tional Bank & Trust Co. of Chicago, which lYir. Patman said questions of conflict could ness holdings valued at close to $1 million to recently transformed itself into a so-called be resolved if Secretary Kennedy "could tell avoid any conflict of interests. Most of this "one-bank holding company," Conill Corp., the committee this morning that you were amount represents more than 32,000 conunon thereby taking advantage of a legal loophole willing to revise your trust arrangement to shares of Alaska Interstate Co., Houston. that the Administration's bill is designed to provide for the immediate sale of all bank Based on Friday's closing price of $28.25 on close. As the bank's chairman, Mr. Kennedy stock." the American Stock Exchange, these shares had advocated the move. The Banking Comlnittee chairman said would be worth more than $900,000. Rep. Patman and the Administration both _this perhaps would cost Mr. Kennedy money Mr. Hickel acquired the stock in exchange have introduced bills that would extend Fed­ "in the form of additional taxes, but I don't for his interest in Anchorage Natural Gas eral regulation to these one-bank holding think this should be the overriding factor Corp., a gas-distributing utility that he companies, with the goal of keeping banking in meeting your obligations as Secretary of helped found. The committee believed the separate from nonbanking businesses. the Treasury. Living up to the spirit and the possibility of a conflict existed because the Currently, only the banking subsidiaries of letter of the law is often costly to the aver:­ pipeline supplying the utility-also owned by these one-bank companies are Federally regu­ age citizen, and I don't think that it should an Alaska Interstate subsidiary-runs over lated; the "holding companies themselves are be any different for Cabinet officers." public land administered by the Interior free to acquire other businesses far afield Mr. Patman said Title 18 of the U.S. Code Department. from banking. In contrast, holding com­ requires Executive Branch officials to refrain In addition, Mr. Hickel agreed to sell his panies controlling two or more banks are from participating in any Governmental niat.:.. $3,000 interest in a seafood company that tightly regulated by the Federal Reserve ter in which they have a financial interest. · fl.shes for crab on the continental shelf and, Board under a 1956 law. Thus, the one bank In their testimony, Secretary Kennedy, Un­ thus, comes under the jurisdiction of the exemption has prompted many of the nation's der Secretary Charles E. Walker and Richard department's Bureau of Commercial Fish­ banks to transform themselves into one-bank W. McLaren, assistant attorney general in eries. holding companies to enjoy unregulated di­ charge of the Justice Department's Antitrust The other required divestitures weren't versification. Division, urged passage of the Administra­ disclosed, but are equally small, the gov­ The Patman bill would close the loophole tibn's bill as being preferable to the one ernor told reporters. by simply extending the 1956 law's coverage introduced by Rep. Patman. Mr. Hickel also will "admonish" hotels, to one-bank companies. In less direct fashion, Here are the main differences between the contracting concerns and other Alaska enter­ the Adlninistration bill would provide for two bills: - prises, in which he, or his family, has an regulation of one-bank companies, but in Mr. Range of permissible activities: The Pat~ interest not to engage in any Federal busi­ Patman's view it also would loosen the pres­ man measure would extend to one-bank hold­ ness during his time in office. But "obvi­ ent regulatory framework. ing companies the same restriction that ap­ ously, a Government employe can rent a "MAN OF HIGH INTEGRITY" plies to multibank holding companies. The room" in a Hickel-owned hotel, Sen. Jack­ Mr. Pat.man assured Mr. Kennedy that restriction specifies that bank holding­ son commented. he considered him "a man of high integrity." company affiliates must be "closely related" The committee originally turned its atten­ But the chairman added: "You come be­ to banking. The Administration bill would tion to Alaska Natural Resources Commis­ fore us today to testify on banking legisla­ eliminate that restriction, but would state sioner Thomas E. Kelly, a former Houston tion at a time when you hold substantial in­ that any bank holding company could ac­ oil executive, in exploring charges that the terests in a bank. And more importantly, it quire any concern engaged in any activity Hickel administration has been too cozy with is an interest in a one-bank holding com­ that has· been determined unanimously by the oil industry. Mr. Kelly's post gives him pany-the very subject on which you tes­ the three Federal banking agencies to be regulatory powers over oil and gas develop­ tify." financial or "of a fiduciary or insurance na­ ment on state lands. Chairman Patman said he understood Sec­ ture." At the outset of the hearings, Mr. Hickel retary Kennedy has exercised an option on Jurisdiction: The Patman bill would testified that as far as he knew, Mr. Kelly 30,855 Continental Illinois National Bank make one-~ank holding companies subject didn't own any oil-company interests. In shares with a market value of more than $1.2 solely to regulation by the Federal Resel've response to the committee's inquiry, though, million, and that these shares won't be Board. The Administration measure would Mr. Kelly sent a telegram stating that he placed in trust before Aug. 15. spr.ead the regulatory power among the three owns about $60,000 in oil company stocks, "It takes no financial expert to realize that Federal agencies along traditional jurisdic­ including 1,400 shares of British Petroleum the value of this huge stock option will fiuc­ tional lines-the Comptroller of the Currency. Co., purchased after he took over as state tuate according to what happens to the legis­ for national banks, the Federal Reserve for commissioner. lation regulating one-bank holding com­ state member banks and the Federal Deposit panies," Mr. Patman commented. Insurance Corp. for insured nonmember [From the Wall Street Journal, Apr. 18, 1969) He added that part of Mr. Kennedy's "very banks. Proponents of the Adlninistration REPRESENTATIVE PATMAN CHARGES TREASURY large holding" in a Continental Illinois prof­ measure object to the tight manner in which . SECRETARY WOULD GAIN FROM ADMINISTRA­ it-sharing plan has been transferred to him the Reserve Board has supervised multibank TION BANK BILL in the form of Continental Illinois stock. Al­ holding companies under the 1956 act. Mr. though it has been placed in a trust, Mr. Pat­ Patman takes the opposite view, and feels WASHINGTON.-Chairman Patman of the man maintained the trustee isn't obligated regulation would be significantly softened House Banking Committee charged that to diversify the holding-as is the case with under the Administration plan, particularly Treasury Secretary Kennedy would gaiI). fi­ an additional 7,8QO Continental Illinois through giving the Currency Comptroller a nancially through passage of the Nixon Ad­ shares owned by Mr. Kennedy and his wife. role. ministration's proposed bank holding-com­ "In effect, this block of stock (from the Effective date; The Patman bill would re.:. pany bill. profit-sharing plan) remains intact, and you quire one-bank holding companies to divest The Texas Democrat detailed the confl.ict­ know that the moment you leave the office themselves of affiliates deemed by the Re­ of-interest charge in a scathing seven-page ot Secretary of the Treasury you will have in serve . Board to be insufficiently related to statement as Mr. Kennedy, who left the your possession a substantial holding in ba.nking. The Administration bill would chairmanship of a major Chicago bank to Continental Illinois Bank, or the Conill hold­ l~ave untouched any one-bank holding com­ join the Nixon Cabinet, waited to testify at ing company," Mr. Patman said. "Under pany affiliates acquired before June 30, 1968. May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11875 [From the Wall Street Journal, Apr. 30, Mr. Eggers sMd that Mr. and Mrs. Kennedy Secretary Kennedy continues to have noth­ 1969] don't own any stocks that haven't been trans­ ing to say about the controversy. TREASURY SECRETARY SELLS HIS BANK STOCK, ferred to a trust supervised by Old Colony The Eggers statement had denied a con­ PRESUMABLY To STIFLE CONFLICT .ALLEGATIONS Trust Co. This trust includes 7,846 shares of flict existed between Mr. Kennedy's Treasury Conill Corp., the holding company into which job and his relationship with Continental Il­ (By Fred L. Zimmerman) Continental Illinois National Bank was re­ linois National Bank, of which Mr. Kennedy WASHINGTON.-Treasury Secretary Ken­ organized April 1 on a share-for-share basis. was the $200,000-a-year chairman until he nedy, apparently giving in to Congressional According to Senate Finance Committee joined the Cabinet. pressure, a few weeks ago quietly sold more records, the trust also apparently contains Mr. Patman began yesterday's skirmish­ than $1.2 million of stock in Continental 2,351 common shares of 14 other corpora­ ing with Mr. Kennedy by commending him Illinois National Bank & Trust Co., Chicago. tions, including Texaco Inc. and General for recently selling more than $1.2 million of In a confidential statement to the Senate Motors Corp. the bank's stock, presumably to resolve the Finance Committee in January he had said Mr. Eggers noted that on Jan. 10, after conflict-of-interest question that has been he intended to hold the stock at least until Mr. Kennedy was named to the Cabinet, Con­ raised mainly by Mr. Patman. Aug. 15, when the income from its sale would The 30,855 shares were acquired through tinental Illinois directors awarded him a stock options after Mr. Kennedy became have been eligible for long-term capital­ "separation allowance" of $200,000, to be gains tax treatment. The 30,855 shares were Treasury Secretary. He has declined to say paid in five an~ual instalments beginning purchased under a stock-option plan for exactly when they were acquired or sold, when Mr. Kennedy leaves the Treasury. "This to whom, and at what price. $1,211,367 after Mr. Kennedy joined the contractual right was fixed and certain on Cabinet. Mr. Patman maintained, however, that the Their unannounced sale presumably was Jan. 10, 1969, and no action Mr. Kennedy stock sale, disclosed in the Eggers statement designed to stifle allegations, principally would take while in office can alter this didn't sufficiently cut the Secretary's ties from Chairman Patman (D., Texas) of the amount," Mr. Eggers said. with the bank. He noted that Mr. Kennedy House Banking Committee, that Mr. Ken­ Senate Finance Committee records also still is entitled to the $200,000 "separation nedy had a clear conflict between his Treas­ disclose that Mr. Kennedy is entitled to de­ allowance" bank directors voted him last Jan. ury job and his ownership of a large block ferred payments totaling about $32,000 for 10, after he had been named to the Cabinet. of stock in the nation's eighth largest bank. his past service as a director of Abbott The money is to be paid him in five annual Mr. Kennedy was the bank's $200,000-a-year Laboratories, Chicago. The payments are to instalments when he leaves office. chairman until he entered the Government be in monthly instalments of about $400, PATMAN SAID "ANGRIER" starting when he reaches age 68. Mr. Ken­ in January. Last night, after learning Mr. Eggers didn't The sale was disclosed by Treasury general nedy is 63. Additionally, he has been receiving since intend to appear before the committee as re­ counsel Paul W. Eggers yesterday morning quested, Mr. Patman was reported by an aide in response to a reporter's inquiry. Mr. Eg­ last January a pension from the bank of about $4,800 monthly, and the bank is pay­ to be "angrier than ever." gers later issued a statement discussing, in In a statement, Chairman Patman noted more detail than Mr. Kennedy has been ing the "major cost" of his ·$108,000 life in­ surance policy. that Mr. Eggers had accused him of making Willing to do himself, the Secretary's finan­ "erroneous" allegations and then had re­ cial situation and declaring that no illegal­ [From the Wall Street Journal, May 1, 1969] fused to "come before the committee and ity or confilct of interest exists. substantiate the charge." Mr. Eggers also disclosed that Secretary PATMAN SHOWDOWN WITH TREASURY CHIEF Mr. Patman also said: "Secretary Ken­ Kennedy had elected to accept an unspec­ SEEN OVER FINANCIAL TIE TO CHICAGO nedy and his general counsel . . . have is­ ified amount of cash from the bank as set­ BANK sued a misleading and highly incomplete tlement of his profit-sharing account, rather (By Fred L. Zimmerman) statement claiming that the Secretary has than a combination of cash and bank stock. WASHINGTON.-Chairman Patman of the absolved himself of a conflict. The release This decision also contrasts with the in­ House Banking Committee, still dissatisfied is minus dates and other essential details of tentions Mr. Kennedy outlined in his con­ with Treasury Secretary Kennedy's financial the events they claim occurred. This is sim­ fidential letter to the Senate Finance Com­ ties to a Chicago bank, is determined to force ply a hoax being perpetrated on the press and mittee. He told that group in January he a "showdown" with Mr. Kennedy on the the Congress . . . and I regard the general planned to settle with the profit-sharing issue. counsel's letter charging me with erroneous plan for 3,800 bank shares and about $475,- Mr. Patman, a Texas Democrat, said in an statements to be a personal affront. I cha l­ 000 cash. He told the committee that his interview he won't be content until Secretary lenge him to document the charge." total distribution from the plan would be Kennedy either "removes all conflict with the worth about $645,000. bank" or leaves the Treasury. [From the Houston (Tex.) Chronicle, Additionally, his trustee, Old Colony Trust The 75-year-old Mr. Patman consider his Feb. 25, 1969] Co., Boston, originally had been instructed fight with Mr. Kennedy similar to his 1932 PATMAN TAKING AIM AT KENNEDY OVER not to sell that block of 3,800 shares except battle with Treasury Secretary Andrew Mel­ BANK FIGHT under unusual circuinStances. Mr. Eggers lon over conflicts of interest. The impeach­ (By Murray Seeger) didn't explain why Secretary Kennedy even­ ment proceedings Mr. Patman began then tul;\lly decided against taking the 3,800 shares. were instrumental in Mr. Mellon's resigna­ WASHINGTON .-One of the craftiest old Mr. Eggers declined to state exactly when tion. lions of Congress and a Nixon cabinet mem­ the 30,855 Continental Illinois shares were Chairman Patman readily states that an ber once described as a lamb are about to sold, to whom, or the price received. He said impeachment effort is "one of the alterna­ tangle in bitter battle. the bank had arranged the sale at Mr. Ken­ tives" he's considering, although he says his The specific issue is legislation governing nedy's request in an "arm's-length" transac­ next major step may be to ask the committee the headlong growth of one-bank holding tion. to subpoena Mr. Kennedy or Treasury Gen­ companies. But the personal finances of the Secretary Kennedy, he said, was taxed on eral Counsel Paul W. Eggers to answer ques­ lamb, treasury secretary David M. Kennedy, the shares at ordinary income rates rather tions about the Secreary's financial situation. will also be debated with the lion, Rep. than at the lower capital-gains rate Mr. Ken­ "As long as there's evidence he's in a con­ Wright Patman, D-Texas, leading the argu­ nedy originally had aimed for. His profit from flict of interest,'' Mr. Patman says, "I'm not ment. the sale isn't known, but current market going to give up on him. I have never given Under an agreement reached with the Sen­ prices for Continental Illinois stock are only up on anything." ate Finance Committee when it confirmed his a dollar above his stock-option price of Yesterday, Chairman Patman called upon noxnination, Kennedy has notified the Con-. $39.26. Secretary Kennedy to revoke an arrangement tinental Illinois National Bank and Trust Co. Criticism of Mr. Kennedy's continuing re­ whereby he will be given $200,000 by the Chi­ of Chicago that he will buy the 30,000 shares lationship with the bank has been rising. cago bank, Continental Illinois National of stock he was entitled to under a stock op­ About two weeks ago Mr. Kennedy sat si­ Bank & Trust Co., when he leaves the Gov­ tion granted when he was its chairman. The lently at a House Banking Committee hear­ ernment. stock is worth $1.2 million. ing waiting to testify on banking legislation He also requested that Mr. Eggers, the Kennedy agreed last month to transfer his while Chairman Patman read a biting seven­ Treasury's general counsel, appear before the assets to a " blind trust" to be administered page statement discussing the Kennedy committee Saturday morning to answer while he is in office. This trustee, who would finances. questions about a statement he had issued operate without informing_ Kennedy of his When Mr. Patman had finished his attack, Tuesday about Mr. Kennedy's financial sit­ investment decisions, was instructed to di­ which centered on Secretary Kennedy's al­ u ation. versify the portfolio. The items given to the leged ownership of the 30,855 shares, Mr. REQUEST QUICKLY DECLINED trustee include about 8000 shares of Conti­ Kennedy briskly declined comment--even But Mr. Eggers quickly declined, explain­ nental Illinois stock. t hough, according to the Eggers statement, ing that "Secretary Kennedy's personal fi­ However, Kennedy must hold the 30,000 he had already disposed of the shares in nances are irrelevant" to the bank holding new shares of Continental Illinois stock for question. company legislation the committee ls con­ six months under terms of the )aw govern­ Chairman Patman, in response to the Eg­ sidering. He also stated that he had nothing ing stock options. He then can sell them or gers statement, commended Secretary Ken­ to add to his earlier discussion of Mr. Ken­ transfer them to his trust. nedy for "starting this action to clear up nedy's finances. Continental Illinois on Feb. 3 received the conflict." Meanwhile, a Treasury spokesman said permission from t he superintendent of na- 11876 CONGRESSIONAL RECORD- HOUSE May 8, 1969 tional banks to convert. itself into a one­ dentlal clearance-as required by law-for tt by ·obtaining a bank loan but not from bank holding company, Conill Corp. his apparent conflict of interest relationship ContinentaL The source of the loan could .As a result, the new corporation has a with a Chicago bank. not be learned. vested interest in holding company legisla­ Under the federal confilct-of-interest laws, Kennedy also owns 11,6-W shares 01' Conti­ tion the Treasury soon will send to Congress. a public official is barred from taking oftlcial nental stock which he has P.laced in tru~t The possibility of a conflict-of-interest decisions and actions that would benefit his with the Old Colony Trust Co. of Boston. between Kennedy's official role and his pri­ personal business interests. After Kennedy was appointed to the Cab­ vate investment caught the attention of the The law can be circumvented, however, 1! inet, the Continental Bank directors voted 75-year-old Patman, chairman of the House the President finds that the individual's to give him deferred compensation of $200,- Banking and Currency Committee. private interest is "not so substantial" as to 000 to be paid over five years after he leaves Patman has introduced a bill that would likely affect the integrity of the man's serv­ government service. This amount is almost limit the activities of one-bank holding ice to the government. equal to his final annual salary at the bank, companies more strictly than the legislation A Trea.sury spokesman, in declining com­ $233,750. under consideration by the Treasury. ment, said, "This issue involves the secre­ The secretary is currently receiving $5,000 Although Patman seldom can win major­ tary personally and the White House." a month in pension from the bank, a total ity approval in the House for his sternest At the White House, all questions were of $60,000 a year. His · government salary is anti-big bank positions, his influenvernors, Patman Chairman Robert E. Hampton. age firm. The modern banking laws passed and Sen. Wllliam Proxmire (D-Wis.), rank­ When he was questioned by the Senate after the great stock market collapse 40 years ing Democrat on the Senate Banking Com­ Finance Committee, Kennedy submitted a ago were designed to prevent the formation mittee. letter from his Chicago attorneys which of such cartels that could wield immense "If the Treasury bill passes," one congres­ stated that "upon your assumption of of­ power over the nation's economy. sional authority said Wednesday, "it will en­ fice ... you wnl be in compliance with some hance the value of every one-banking hold­ of the conflict of interest laws. PUT ALL IN SAME BASKET ing company stock in the country." However, the big stock purchase was made Under the Patman proposal, one-bank KENNEDY HOLDINGS after Kennedy took office as was the sever­ holding companies would be swept into the ance pay arrangement. same liinited legal structure governing Thus Kennedy is in the position of Mvo­ Herbert A. Freidlich, an attorney, also multi-bank companies. The banks that had cating legislation which probably would in­ warned Kennedy in the letter: "In the already taken on enlarged services would crease the value of his holdings in Conti­ nental Illinois. day-to-day administration of the office of have to divest themselves of such activities. secretary of the Treasury, Section 208 of "The entire structure of the American Kennedy owns outright 30,855 shares of Title 18 will be the statute which will be economy is being changed through con­ Continental stock currently selling at $40.25 principally applicable to you." glomerates centered around banking institu­ a share over-the-counter. He purchased this This is the statute which Mr. Nixon can tions," Patman charged. "This is clearly a stock after becoming Treasury secretary at threat to everyone--both inside and outside $39.26 a share under terms of a stock option waive with a memorandum. It is also the the :financial community-and it is essential granted to him by the bank while he was its law cited by Patman in his criticisms of the that the Congress act quickly to provide chairman. secretary. meaningful remedies." Although Kennedy will not talk about his In his statement to the appointees last personal finances publicly, it is known that winter, Ehrlichman warned: [From the Los Angeles Times, Apr. 24, 1969} he must hold these shares until Aug. 15 in "As a general proposition, it can be said TREASURY AIDES SILENT ON STATUS OF KEN­ order to comply with the law covering stock that where ownership ·of property or a finan­ NEDY-DECLINE TO ANSWER QUESTIONS ON options. This waiting period will also allow cial interest creates a conflict or an appear­ C~INET OFFICIAL'S APPARENT CONFLICT OF him to take advantage of a lower tax rate on ance of a conflict, some arrangement should INTEREST capital gains compared with the rate charged be made to eliminate the conflict. (By Murray Seeger) for ordinary income. "It is worth emphasizing that the ap­ WASHINGTON.-The Treasury Department OBTAINED LOAN pearance of a conflict could be just as em­ would not disclose Wednesday 1! Secretary Kennedy's holding of Continental stock is barrassing to the Administration and the David M. Kennedy has received written presi- now worth $1,241,913. He paid $1,211,367 for Cabinet appointee as an actual conflict." May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11877 [From the Los Angeles Times, Apr. 25, 1969) Under the federal con:fllct of interest stat­ [From the Los Angeles Times, Apr. 30, 1969] No WAIVER ISSUED IN KENNEDY CASE, WHITE utes, a government official must "refrain from DAVID KENNEDY'S SALE OF STOCK IN CHICAGO HOUSE CONCEDES-AIDE ALSO DISCLOSES No participating as such in any matter in which, BANKING FmM TOLD to his knowledge, he, his spouse, minor child FINANCIAL STATEMENTS HAVE BEEN FILED (By Murray Seeger) FOR ANY MAJOR NIXON APPOINTEE AS RE­ or partner has a financial interest," accord­ WASllNGTON.-During the first week of QUIRED BY LAW ing to a Department of Justice analysis. An exemption or waiver to this law can April, Treasury Secretary David M. Ken­ (By Murray Seeger) be granted for a Cabinet officer by the Presi­ nedy sold 30,855 shares of stock in the Chi­ WASHINGTON.-The White House acknowl­ dent "if the outside financial interest in a cago Bank where he had been chairman, it edged Thursday that no presidential waiver matter is deemed not substantial enough was disclosed Tuesday. has been issued or requested to protect to have an effect on the integrity of his serv­ Since then, therefore, neither Kennedy nor Treasury Secretary David M. Kennedy from ices," the Justice Department report states. his wife has been "a stockholder of record of charges of conflict of interest. NOMINEES ADVISED any stock either in Continental Illinois Bank In addition, Edward L. Morgan, deputy & Trust Co. or in Conill Corp.,'' Paul W. Eg­ counselor to the President, disclosed that the Morgan said White House lawyers exam.­ gers, general counsel of the Treasury, said in White House has not yet sent to the chair­ ined each Cabinet officer's :financial holdings a letter to Rep. Wright Patman (D-Tex.), man of the Civil Service Commission the before their names were submitted to the ohairman of the House Banking and Cur­ financial statements required of any major Senate for confirmation. Each nominee was rency Committee. Administration appointee. advised on the confiict of interest laws and Eggers wrote his letter after undertaking The terms of a 1965 presidential executive regulations. an investigation of charges by Patman that order governing the conduct of federal offi­ In general, the officials were advised to sell Kennedy was the owner of substantial stock cials require that statements of their per­ stocks that might cause a con:flict and put in the Chicago Bank at the same time he was sonal :financial holdings, loans and property other holdings in trusts over which they advocating new legislation which would be submitted to the commission chairman, would have no control. directly affect the bank. now Robert E. Hampton, a Nixon appointee, Kennedy followed this procedure with "I have made a thorough investigation of 30 days after taking office. 11,646 shares of Continental stock he had these charges and I find that they are errone­ accumulated. However, he had the rights CHARGES AIRED FOURTH TIME ous both as to the facts alleged and as to the to the additional 30,855 shares under a stock conclusions drawn," Eggers said. The White House for the first time Thurs­ option which he exercised after he was ap­ The stwtement did not explain why Ken­ day discussed the charges against Kennedy pointed. nedy held the stock from Jan. 22, when he shortly after Rep. Wright Patman (D-Tex.), A federal law covering options says the notified the Senate Finance Committee he chairman of the House Banking Committee, holder can make "no disposition" of such would exercise an option on the 30,855 or the fourth time this year publicly at­ stock for six months. In addition, Kennedy shares-worth more than $1.2 million-until tacked the secretary. He accused Kennedy of told the Senate Finance Committee which after April 1. having a conflict because of his personal confirmed him that he wanted to hold the In the meantime, the bank was reorganized ownership of stock in a Chicago bank at the stock for six months-ending Aug. 15-in into a one-bank holding company called same time he is advocating new legislation order to take advantage of the capital gains Con111 Corp. This action took final effect on which would directly a.trect that bank. tax rates which are lower than the rates on April 1 and Kennedy sold his stock "two or "From the facts that I have before me, I salary income. three days later," a Treasury spokesman said. can only conclude that you do indeed have a DEFERRED INCOME Continental Illinois stock was converted into serious conflict of interest which can be In addition, Kennedy has been granted Conill stock on April 1 with no change in remedied only through the immediate sale of value. your bank stock and through severance of $200,000 in deferred income to be paid by the bank after the secretary leaves office. There was also no explanation why Ken­ your other financial ties to Conill Corp." nedy spurned repeated requests by Patman Patman said. "There has been no waiver signed by the President," Morga~ said. "We haven't been and reporters to explain clearly his financial Kennedy listened quietly to Patman's new situation since it became an issue in Feb­ blast in the banking committee hearing requested to issue a waiver-Treasury has not asked for a waiver." ruary. room. The secretary refused to answer report­ The secretary had no comment Tuesday ers• questions about his personal finances as The executive order, issued by former Pres­ ident Lyndon B. Johnson and still in effect, on Eggers' study. he has since February when The Times first The questions raised involved three blocks asked him about them. also prohibits employes from having "direct or indirect financial interests that con:fllct of stock which Kennedy either held or was Later, the secretary sent word through the substantially, or appear to confiict substan­ entitled to obtain when he left the big bank Treasury Department's general counsel, Paul tially with their responsibilities and duties as to join President Nixon's Cabinet in January. W. Eggers, that he was gathering material federal employees." The legislative issue involves the rapid about his holdings which would be made Enforcement of this order is assigned to the movement of banks to reorganize themselves public. Civil Service Commission. The chairman has into one-bank holding companies, a corpo­ "There is no stock in his wife's name and the responsibility for judging if Cabinet offi­ rate structure which allows banks to expand there ls no stock in his name and that covers cers have potential conflicts according to the their businesses outside the usu.al financial the Continental Bank and that covers the statements they submit. services. holding company, Conill," Eggers said. As a result of this rapid move, the federal He acknowledged the secretary exercised an IN THE PROCESS bank regulatory agencies led by the Federal option to purchase 30,855 shares of the bank "We are in the process of sending all this Reserve Board sought new legislation which stock but would not elaborate on how it is over to the Civil Service Commission," Mor­ would regulate the activities of one-bank held. gan added. holding companies. ONE-BANK HOLDING COMPANY The counselor said he did not think a "dou­ ALREADY REGULATED ble standard" of conduct had been applied Conill ls the name of the one-bank holding Multi-bank holding companies are already company formed by the Continental Illinois to Kennedy. His arrangements with the Sen­ ate Finance Committee had also been cleared regulated. National Bank & Trust Co. Of Chicago and Kennedy, as board chairman of Continen­ approved by the superintendent of national with the White House. "At the time we advised him, the one-bank tal Illinois, last December urged stockhold­ banks in February. ers to approve the conversion of the bank Kennedy was chairman of the board of holding company question was not an issue," Morgan asserted. into Conill Corp., to be incorporated in Dela­ Continental Illinois and was active in the ware. He took the oath of office as 'lreasury formation of the holding company. Under Congressional authorities pointed out that secretary on Jan. 21. present laws, a one-bank holding company is every Cabinet officer except Kennedy was re­ After the stockholders approved the reor­ able to expand business operations beyond quired to divest himself of stocks or to as­ ganization, the superintendent of national the restrictive area of traditional banking. sign them to an independent trustee. No banks approved the creation of Conill Corp. Legislation is pending before Patman's other appointee was allowed the freedom to on Feb. 3. committee to regulate one-bank holding com­ acquire more stock after taking office. 'lreasury officials, in the meantime, were panies for the first time. "He ls the poorest man in the Cabinet," trying to reach agreement with the other Patman favors strict rules of operation a Finance Committee staff member observed agencies on holding company legislation. for one-bank a.nd multibank holding com­ about Kennedy. Federal Reserve officials held out for a panies. A bill supported by the 'lreasury De­ Other sources observed that while the Sen­ stricter bill than the 'lreasury advocated but partment would loosen the rules now gov­ ate Finance Committee approved the secre­ the differences finally were compromised. erning multibank holding companies and tary's arrangements with Continental Il­ Patman and Sen. William Proxmire (D­ put one-bank companies under the same reg­ linois, another Senate committee, banking Wis.) ranking Democrat on the Senate Bank­ ulations. and currency, will have jurisdiction over the ing Committee, introduced their own holding In his brief statement to Kennedy Thurs­ bank holding company legislation. company bills in March. In general, they took day, Patman insisted, "Your bank stock and At his hearing, Patman asked Kennedy to the same position-that one-bank companies your other connections with the Conill supply a detailed financial statement to the should simply be placed under the strict Corp.-a one-bank holding company-do House committee and to include a legal limits of activity which apply to multibank have a direct bearing on your presentations analysis of the federal law and rules govern­ companies. before this committee." ing conflict of interest. The Senate Finance Committee, which ap- 11878 CONGRESSIONAL RECORD- HOUSE May 8, 1969 prov-ed. Kennedy's nomination, required him The congressman said he still wanted Ken­ whether he wants to be a public official or a to either sell two blocks of stock he held or nedy to provide the committee with a finan­ banker." to turn them over to a trustee to manage. cial statement. He said he had objected to Patman said "it would have been unusual, GORE OBJECTS the arrangements agreed to by the Finance to say the least" if Eggers had found his boss Committee in January. guilty of wrongdoing. At first, Kennedy proposed that Continen­ "I'm pleased that the secretary now agrees IRREVELANT TO BILL t al Illinois be the trustee, but after objec­ at least in part," .Patman added. tions by Sen. Albert Gore (D-Tenn.), he A Treasury spokesma n was asked if the In his Wednesday letter, Eggers told Pat­ agreed to find an "independent trustee." White House had brought pressure on Ken­ man, "Secretary Kennedy's personal finances The committee, however, gave him per­ nedy to dispose of his stock completely. "Not are irrelevant to H.R. 6778 (the one-bank mission to exercise an option on 30,855 shares enough so you could tell it," he answered. holding bill) . " to which he was entitled as a bank officer. Eggers undertook the investigation as "At the beginning of the hearings on H.R. The panel said he could hold the stock for p art of his official dut ies of enforcing con­ 6778, you made statements concerning Sec­ six months in order to take advantage of the flict of interest rules for Treasury officials, retary Kennedy which were erroneous to the more generous long-term capital gains tax the Spokesman added. facts alleged and the conclusions drawn. My rate. statement was for the purpose of insuring "The committee members felt that since [From the Los Angeles Times, May 1, 1969) that the record accurately reflects the facts." they wrote that law they ought to let Ken­ Patman termed Eggers' refusal to testify nedy take advantage of it," a congressional DAVID KENNEDY AIDE SNUBS HOUSE INQUIRY­ "a disgrace to the federal government." He source said Tuesday. TREASURY COUNSEL REFUSES To TESTIFY ON also termed the Treasury's statement clear­ In addition, the committee approved a SECRETARY'S CHICAGO FINANCIAL HOLDINGS ing Kennedy of conflict of interest "hood­ plan by the bank to pay Kennedy $200,000 (By Murray Seeger, Times staff writer) winking." in deferred salary in five installments to WASHINGTON .-Paul w. Eggers, general "This is simply a hoax being perpetrated start after he leaves public office. He receives counsel of the Treasury Depart ment, refused on the press and the Congress," he said of a bank pension of $60,000 a year, the same :Wednesday to appear voluntarily as a con­ Eggers' letter. as his government salary. gressional witness to discuss the financial Patman said he would not include Eg­ Patman first questioned Kennedy about affairs of his boss, Secretary David M. Ken­ gers' statement in the hearing record until the bank stock in February when the secre­ nedy. he questioned the counsel. As committee tary appeared before the Joint Economic As a result, Rep. Wright Patman (D-Tex.), chairman he has power to subpoena Eggers Committee of Congress. chairman of the House Banking and Cur­ to testify. On March 24, eight days before Conill offi­ rency Committee, said he was considering Such a move could bring an early confron­ cially went into business, the Treasury sent taking action to force Eggers to testify, pre­ tation between the Democratic-controlled its proposed holding company legislation to sumably by subpoena. Congress and Republican Administration on Congress. Patman started hearings on April 1 Patman invited Eggers Wednesday morn­ the issue of "executive privilege"-the right and raised the issue o! Kennedy's stock ing to appear before the committee Saturday of executive-branch officials to withhold in­ again. He repeated his questions on April 17 to answer questions about a statement Eg­ formation from Congress. and April 24. gers issued Tuesday concerning Kennedy's Mr. Speaker, David Kennedy has taken Eggers said he started his investigation finances. after hearing Patman's statements on the attitude that no one, not the Con­ Eggers promptly replied in a letter to Pat­ gress, not the press, and not the public, April 25. man that "there is nothing I can add" to The Chicago bank said Kennedy took some his Tuesday statement. should ask him about his finances. He o! the stock he was entitled to under a apparently comes to Washington from a profit-sharing plan in cash. Another 7,846 SERIOUS CONFLICT stratum of the business world in which shares of stock were transferred to the Old In that statement, Eggers contended that such questions are never asked and an­ Oolony Trust Co. This remained in Kennedy's Kennedy, by disposing of stock he owned in name until April 1 when it was converted a Chicago bank where he had been chairman, swers are never given. into Conill shares and reissued to Old Colony, had removed any possible conflict of interest. But Mr. Kennedy is now in a public the secretary's chosen trustee. Earlier, in congressional hearings and in world and there are certain rules, regula­ After the 30,855 shares were converted into a letter to President Nixon, Patman charged tions, and laws which must be followed. Conill stock, Kennedy asked a bank officer that Kennedy had "a serious conflict of in­ No doubt in the banking community a to arrange a sale, a Treasury source said terest" because of his ownership of stock in flick of his hand was enough to settle an Tuesday. This deal was consummated during the Continental Illinois Bank & Trust Co., issue. the first week of the month. which on April 1 became a subsidiary of In the Federal Government, more is re­ "The tax law would require Mr. Kennedy Conill Corp., a -0ne-bank holding company. quired. The people of th~ United States to hold this stock for a period of six months The Secretary on March 24 sent Congress after purchase in order to realize long-term proposed new legislation to regulate one­ have not given the Congress nor the capital gain on the sale," Eggers pointed out. bank holding companies such as Oonill. executive branch the authority to excuse "There were no restrictions under the terms Although he took office Jan. 21 and ad­ any official from the letter and the spirit of the option or under the law to prevent the vised the Senate Finance Committee Jan. 22 of these laws regardless of his past record sale of the stock prior to the termination of that he intended to exercise an option to for integrity or his past role as a banking the six months." buy 30,855 shares of bank stock, Kennedy leader. Mr. Kennedy wlll have to accept Eggers said he det ermined "this was an did not actually buy the stock until April l, this fact or return to private !ife. arms-length transaction." according to Treasury officials. He sold it Mr. GERALD R. FORD. Mr. Speaker, "Kennedy has completely divested himself again "two or three days later," a depart­ will the gentleman yield? of any interest whatsoever in this stock," ment spokesman said. Mr. PATMAN. Not at this point. A~ he said. COMMENDS KENNEDY The la.rge block of Conill shares had to be soon as I finish I will be very glad to yield gold carefully in order to avoid undermining Kennedy told the Senate committee he to the gentleman. their value. wanted to hold the stock for six months be­ Mr. GERALD R. FORD. Mr PROFIT CITED fore transferring it to a trustee in order to take advantage of the lower capital gains Speaker-- Under the option terms, Kennedy bought tax. The committee expected him to buy the Mr. PATMAN. Mr. Speaker, I respect· the 30,855 shares for $39.26 each. Market price stock by Feb. 15 and transfer it by Aug. 15, fully refuse to yield at this time to th1 for the stock on April 4 was $42.38, giving six months later. minority leader. Kennedy an indicated profit of $3.12 a share. Patman commended the secretary for In some other Federal job, Mr. Ken­ The stock, however, was selUng for a bet­ "starting this action to clear up his conflict." ter price in late January when Kennedy told nedy's ties to the banking community But he noted that "the disposition of this might be more easily tolerated. But no the Senate Finance Committee he was ex­ stock has come recently, only after the issue ercising his option. was raised in Congress." other Cabinet official is charged with The January price was $42.50 a share. Early In addition to seeking more details on more responsibility over the banking in­ the next month after the government ap­ Kennedy stock transactions, Patman also dustry than is the Secretary of the proved the formation of Conill the stock went wants to inquire about a $200,000 deferred Treasury. Mr. Kennedy's official actions to its high price of the year of $45.50. compensation plan voted by tbe bank on directly affecting banks are not inciden­ If Kennedy. therefore, had actually pur­ Jan. 10 shortly before Kennedy retired to tal. They are the heart of his responsi­ chased the stock when he indicated he was join the Nixon Cabinet. Kennedy would re­ bility. Virtually every action he takes going to, he could have realized $6.25 a ceive this money in installments after he touches the banks and a large bank like share--twice the profit he did make. leaves federal office. Continental-Illinois is affected day-to­ This Taised the possibility that he decided "The secretary should firmly and imme­ to sell in April because of the pressure diately revok e his interest in this gift from day. brought by PAtman. the bank," Patman argued. "The secretary The one-bank holding company legis­ "I commend the secretary for starting this should move to sever all of these ties to the lation now before the Congress is but one action to clear up this confiict," Patman said bank and get on with the job of serving as example. The Secretary must speak out Tuesday. a public official. He has to make a choice and make recommendations on all bank- May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11879 ing legislation that comes before the Oil & Gas Association, the Rocky Moun­ to have agreed to accept the $200,000 gift Congress. He cannot escape this respon­ tain Oil & Gas Association, and the from his former employer. And, unlike sibility if he is to perform his duties as Western Oil & Gas Association-four the Supreme Court Justice, Mr. Kennedy Secretary of the Treasury. major gas and oil company trade as­ has not agreed to renounce his gift. The Secretary must make decisions sociations which have a tremendous stake I hope that some of the righteous in­ concerning the banks' favored tax treat­ in the pending legislation and especially dignation that has broken out over the ments. The automatic tax writeoff for depletion allowances and things like that. $20,000 fee will now spread to the $200,- "bad debts" is a huge loophole for the It just so happens that Mr. Wallace 000 which Mr. Kennedy agreed to receive banks and its elimination or continua­ Wilson is a vice president of the Contin­ after he was nominated to be Secretary. tion will depend very largely on the Sec­ ental Illinois National Bank of Chicago. The bank and Mr. Kennedy know what retary's recommendations. Was Mr. Wilson's selection for this im­ this $200,000 represents. They know that The tax and loan account funds are portant testimony accidental? Or has such a "separation payment" is not nor­ handled by the Secretary of the Treas­ the word gone out that the way to reach mal. And, more importantly, they know ury. These are the income tax payments that it would not have been made to that are left on deposit in commercial the Secretary of the Treasury on tax matters is through the Continental Illi­ David M. Kennedy had he not been nomi­ banks without interest. This "free" nois National Bank? nated Secretary of the Treasury. money is a highly profitable item for the This $200,000 must be renounced. banks like Continental Illinois National Mr. Speaker, today there~ great con­ cern in the country for law and order. President Nixon is a very wise poli­ Bank which has rights to more than $600 tician. He has been around Washington million worth of these funds. What kind I share this concern but I recognize that law and order must be applied evenly for a number of years. I sincerely question of objective decision can the Secretary whether he endorses Mr. Kennedy's re­ make about this when he is so closely across our society if it is to have any fusal to testify before a congressional tied to the bank? meaning at all. And it is incumbent on committee. I doubt that he would approve The Secretary, of course, must also public officials-particularly those in the of the Treasury General Counsel's issuing help formulate broad economic policy highest Federal offices-to set an exam­ a statement and then refusing to explain and he is charged with the responsibility ple. it to a congressional committee. of marketing Government - securities Secretary Kennedy's conflict of in­ President Nixon built a great deal of which are purchased in huge blocks by terest shakes the people's confidence in his career in the House of Representa­ banks like Continental Illinois National their Government. It does not set an ex­ Bank. The Secretary has indicated that tives on the pursuit of reluctant wit­ he accepts high interest rates as a mat­ ample of scrupulous conduct at a time nesses-witnesses who entered pleas of ter of course and he has no objections when we are attempting to gain new re­ the fifth amendment to avoid testimony. to the Treasury Department paying spect for the law. We cannot insist that I cannot believe that the President would banks like Continental-Illinois National the average citizen obey the letter of the now agree to have his own Cabinet offi­ Bank record interest charges on these law and then allow the highest officials cials enter such pleas before the Con­ securities. He is very sympathetic to the of the Federal Gove1nment to flaunt the gress. banks' needs. Under these circumstances, law. Mr. Speaker, I hope that the Nixon ad­ it is naive to expect the administration Last week, President Nixon sent the ministration will carefully review Secre­ to seek lower interest rates so long as Congress a really excellent message on tary Kennedy's entire :financial situation. Secretary Kennedy is in the Treasury organized crime. It is a message that I I hope they will explore the details of the Department. hope this Congress will heed. I hope we written agreements as well as determin­ Let me read that again: The Secre­ give the President the necessary tools to ing whether any additional arrangements tary has indicated that he accepts high carry out a meaningful fight against or­ exist and whether any new conversations interest rates as a matter of course. In ganized crime. have taken place between the Secretary other words, he has no objection to high and his former employer. I hope that the But a large part of this assignment administration will take the appropriate interest rates on these securities and he is would go to the Treasury Department, very sympathetic to the banks' needs. action. Without question, such an issue is under the direction of Secretary Ken­ better resolved on a voluntary basis. It is Under these circumstances it is im­ nedy. The department has jurisdic­ possible to expect the administration to something that should have been resolved seek lower interest rates so long as Sec­ tion in such areas as narcotics control, before the Secretary took the oath of retary Kennedy is in the Treasury smuggling, and similar crimes. The Se­ office. It is regrettable that we reach this Department. cret Service is under the direct supervi­ point of showdown after he has taken The Secretary of the Treasury makes sion of the department as well as the official actions and after he has held the important policy decisions in other areas Internal Revenue Service, and both of office for more than 3 months. Much and among one of the most important these agencies are essential tools in a damage has already been done and this areas is the area of taxes, a very contro­ fight against crime. is something that should be assessed as versial legislative item at this moment. With all of the responsibility in this the matter is being officially concluded. Mr. GERALD R. FORD. Mr. Speaker, area, it is essential that the Secretary The next move is up to the executive will the gentleman from Texas yield? of the Treasury be clearly consistent with bunch. Mr. PATMAN. Not now; no, sir. Appar­ the law. It is important that he have no After that, the matter would have to be ently Mr. Kennedy's fame as an officer cloud of suspicion hanging over the per­ resolved in the legislative and judicial of the Continental Illinois Bank has not formance of his official duties. Certainly branches. Various statutes as well as the been lost in the lobbies that are swarming he, and any other official charged with Constitution provide adequate remedy in around tax reform bills. That may ex­ law-enforcement powers, must be cer­ such cases. plain the appearance-and I hope the tain that his skirts are scrupulously But we must have a firm, no-com­ gentleman from Michigan listens to clean. promise resolution of this issue. The in­ this-that may explain-- Mr. Speaker, in recent days we have tegrity of the Federal Government is at Mr. GERALD R. FORD. Mr. Speaker, stake. If we allow the $200,000 gift to as long as the gentleman from Texas has heard much comment about a Supreme stand along with the other arrangements used my name, I would like to have an Court Justice who has taken a $20,000 that Secretary Kennedy has made with opportunity to make an observation and fee which he later returned. Many have the Continental-Illinois National Bank, a comment. expressed their doubts about his fitness then the conflict-of-interest statutes Mr. PATMAN. Mr. Speaker, I decline to to serve and there have been a rash of mean nothing. They cannot be enforced yield at this point. newspaper editorials. I share the con­ successfully in other areas if they are to That may explain the appearance of a cern over this incident and it is some­ be ignored at the Cabinet level. Mr. Wallace Wilson-and I want you thing that should be firmly resolved with­ Unless this is corrected, it will become to listen to this-be!ore the Ways and out pulling any punches. an everlasting mark of shame for the Means Committee on March 20. Mr. Wil­ But if it is wrong for the Supreme Nixon administration. It will be evidence son represented, and presented the co­ Court Justice to have taken the $20,000 of a double standard--evidence of special ordinated testimony for the American fee from a foundation, then surely it is privileges and special exemptions from Petroleum Institute, the Mid-Continent wrong for the Secretary of the Treasury the law for a special few. CXV--748-Part 9 11880 CONGRESSIONAL RECORD- HOUSE May 8, 1969 The SPEAKER pro tempore. The time recognized him as a man of high integrity protect themselves from unsolicited of the gentleman from Texas has expired. and one whose advice and past commit­ mailings of pornographic materials. Mr. PATMAN. Mr. Speaker, I am sorry ments to public service have been valued Title III of the Postal Revenue and I did not have time to yield to the gentle­ by Presidents Kennedy and Johnson as Salary Act, 1967, which incorporated man from Michigan. well as President Nixon. provisions from my earlier antiobscenity I think we ought to respect the judg­ bills, was regarded then, at least in my ment of the other body in this regard opinion, as only a first line of defense THE NIXON ADMINISTRATION HAS after they have been given the informa­ against the smut peddlers. Accordingly, TAKEN THE INITIATIVE ON HOLD­ tion in reference to some of the allega­ I have since taken it upon myself to con­ ING COMPANY LEGISLATION tions made by the gentleman from Texas. sult with officials in the Criminal Divi­ (Mr. GERALD R. FORD asked and was I think the gentleman from Texas, sion of the Justice Department, the Gen­ given permission to address the House under the circumstances, ought to re­ eral Counsel's Office in the Post Office for 1 minute and to revise and extend move from the RECORD the serious charges Department, and the Chief Justice of the his remarks.) which he cannot and has not convinced Supreme Court about further corrective Mr. GERALD R. FORD. Mr. Speaker, the Senate or this body of any validity. legislation. I am very disappointed that the chair­ The SPEAKER pro tempore. The time I have also discussed the need to pro­ man of the Committee on Banking and of the gentleman from Michigan has tect minors from the harmful effects of Currency has fled the Chamber. I asked expired. obscene literature with several doctors of the gentleman to yield on several occa­ medicine, themselves so off ended by the sions during his remarks concerning the unsolicited obscene mail sent to their of­ distinguished Secretary of the Treasury. PENALIZE THE SMUT PEDDLERS fices and homes that they were prompted I wish that the gentleman from Texas (Mr. MONAGAN asked and was given to advocate stern legal penalties. I have would return to the Chamber to answer permission to extend his remarks at this also received substantial mail from other a question or two, or to hear the obser­ point in the RECORD and to include ex­ professional men in my congressional vations and comments I might make con­ traneous matter.) district who are both offended and cerning his remarks. Mr. MONAGAN. Mr. Speaker, I am alarmed by the rising volume of por­ The gentleman froin Texas amazes me filing legislation today to expand the role nography. One of these doctors put the when he suggests the possibility of a con­ of the Federal Government in restrict­ issue to me most eloquently. He wrote: flict of interest growing out of Secretary ing the availability of obscene material I do not expect that these men can be Kennedy's previous association with the to children. The bill provides stiff pen­ stopped from publishing this material with­ banking industry and more particularly out trampling on all kinds of rights, but I with the Continental Illinois Bank, now alties for those who use the mails toped­ would hope that my rights and others' right s a subsidiary of a one-bank holding com­ dle smut to minors-$5,000 and 5 years to be free of these obnoxious and unwar­ in jail for the first offense; $10,000 and ranted mailings could be enforced. pany. The gentleman knows very well 10 years in jail for the second offense. that, at his request, the Secretary of While I recognize that the constitu­ the Treasury appeared and testified be­ Under this legislation, the penalties apply both to those who mail obscene tionally protected right of free speech en­ fore his committee on behalf of one-bank compasses the right to have full access holding company legislation. materials to minors under 17 years of age and to those who publish such materials to printed materials, the Supreme Court Mr. Speaker, I believe it ought to be in Roth v. United States, 354 U.S. 476 pointed out for the benefit of the record in the knowledge that they will be mailed to minors. <1957), declared that obscene literature that it is a fact that the new adminis­ is not entitled to the fu·st amendment tration, under the leadership of the Sec- Included in the bill is a provision re­ quiring a publisher of materials which protection accorded to other literature. 1·etary of the Treasury, has sponsored More recently in Ginsburg v. New York, the introduction of H.R. 9385, the one­ are obscene and therefore harmful to 390 U.S. 629 (1968), the Court recognized bank holding company bill. In its pres­ children to stamp clearly on the cover the right of a State to enforce laws to ent form, this legislation is opposed by of such mail that the contents are ob­ prohibit the exposure of children to many of our Nation's largest banks, and scene and harmful to children. materials, which although not falling several key sections, as I understand it Another feature of the bill is a sec­ within the definition of obscene mate­ would severely handicap future acqui­ tion which forbids delivery directly to rials for adults, are nevertheless harmful sitions and activities of the Continental minors of mail which is stamped obscene to the immature and impressionable. Illinois National Bank and its holding and instead requires that such mail be While the Roth case was directed company. receipted for by an adult. against obscene materials in the mails I I might also add, Mr. Speaker, that This bill also has the goal of keeping think that the ban can be extended to the formation of large one-bank holding not only hard-core pornography away keep obscene materials out of interstate companies started in 1967, and for 2 from children but also materials not clas­ commerce a.s well. Obscene materials years absolutely no holding company leg­ sified as obscene by adult standards have no greater right in interstate com­ islation was sponsored by the previous which would nevertheless be harmful to merce than they have in the mails. administration. In this respect the new children. Offensive as obscene literature may be administration is taking the initiative in This bill represents the culmination of to adults, in the case of minor children far-reaching legislative proposals that a study of the legal aspects involved in such materials have infinitely greater po­ are opposed by many of Secretary Ken­ curbing obscenity; it represents discus­ tential for harm. Of all the protests nedy's former banking associates. sions with medical experts on the dan­ which I have received, the one most em­ With regard to Treasury Department gers which pornography holds for chil­ phasized was the element of serious dam­ legislative proposals concerning bank­ dren; and it represents consultations age to children who have no means to ing, one might even say that the evidence with Post Office Department officials on evaluate this material properly. The thus far points to a significant conflict the dimensions of obscene mail. future of any country rests in the between Secretary Kennedy's position in My recognition of the obscentity J?rob­ strength, ability, and morality of its behalf of the public and that held by lem is not new. As early as February young; this bill aims to preserve just many of our Nation's leading bankers. 1961, I introduced legislation specifically those qualities by adequately and con­ I might add one other observation, Mr. designed to punish those who sent ob­ stitutionally penalizing smut peddlers. Speaker; the allegations made by the scene materials to children. That bill gentleman from Texas were thoroughly prescribed penalties of $5 ,000 and 10 aired by the appropriate committee in years in jail for those convicted of vio­ the other body at the time of the con­ lating its provisions. In March 1963, I CONGRESSMAN NELSEN INTRO­ fi rmation hearings concerning the Sec­ filed an amended form of my earlier leg­ DUCES THE KIDNEY DISEASE retary-nominee of the Treasury. islation which I had expanded to include TREATMENT AND PREVENTION It is my understanding that the com­ unprincipled publishers of pornography ACT OF 1969 mittee in the other body, and the other sent to school-age children. In October (Mr. NELSEN asked and was given body as a whole, unanimously approved 1967, I actively supported title III of the permission to address the House for 1 the recommendation of Mr. David Ken­ Postal Revenue and Salary Act which minute, to revise and extend his remarks nedy as Secretary of the Treasury. They provided a means whereby citizens could and include extraneous matter.) May 8, 1969 CONGRESSIONAL .RECORD- HOUSE 1188l Mr. NELSEN. Mr. Speaker, recently a eXitelllt that it needs Federal Aid, and would kidney center, run by the University of Louis­ fellow Minnesotan sent me an excellent let such a bill go through Congress with ville School of Medicine. letter on the problem of the shortage of "little headway.'' Physicians' chagrin over the financial ob­ As a Representative of Minnesota, I am stacles to the treatment is heightened by the funds for kidney machines. In the 90th asking for your feelings on this problem, highly advanced state of artificial kidney Congress I introduced H.R. 16217 which and W'hat part you will take in this situa;tion. technology. The prototype of the present would have provided assistance for the I am further asking that unless you are one artificial kidney machine, which resembles a establishment and operation of regional of the men who have not supported this squat old-fashioned washing machine was and community programs for patients program in the past, that you do everything developed in 1943 in Holland by Dr. William with kidney disease, and would have in your power to see that this bill does not J. Kolfl', who now is a resident of the U.S. provided for assistance for the training come out of Congress again with "little The patient is connected to the machine, and of personnel involved in such programs. headway" made. his blood is pumped through a series of tubes, While maybe there is a need for all the coils and filters. I am reintroducing the bill today un­ money this country spends overseas and in The key element of the device is a thin der the title, "The Kidney Disease Treat­ space which many of us do not understand, cellophane membrane immersed in a saline ment and Prevention Act of 1969." it's about time we all start realizing that solution. Through the process of osmosis, Mr. Speaker, I under unanimous con­ we have more than enough problems right wastes in the blood that otherwise would ac­ sent include with my remarks the letter here in our own country that demand more cumulate and cause death pass through the I received from Mrs. Roger Tousley, a time from Washington, more federal and membrane into the solution. At the same state support, and more people who take it time, vital chemicals normally added to the copy of an article in the March 10, Wall upon themselves to see that the right thing blood by healthy kidneys pass from the solu­ Street Journal entitled "Some Kidney is done. I, as well as most of the population, tion into the blood. The "cleansed" blood Patients Die for Lack of Funds for Ma­ feel we have to start improving the mental then ls returned to the body. chine Treatment," and a copy of a syn­ and physical health of our own country be­ A SURGICAL BREAKTHROUGH opsis of R.R. 16217 prepared by the fore we continue to worry about many of the things we're presently spending money For a number of years, the machine could American Medical Association: be used only when a few treatments would MINNEAPOLIS, MINN. on, and without a doubt, this is where our moral obligation lies. suffice--such as in cases of acute infections­ Hon. ANCHER NELSEN, because the surgery required to connect the House of Representatives, Thank you for your time, and for your patient with the machine was difficult and Washington, D.a. reply. dangerous. In 1960, however, a team of Sm: I have just read an article in the Sincerely yours, specialists from the University of Washington March 10 edition of the Wall Street Journal Mrs. ROGER A. TOUSLEY. devised a system that made the artificial entitled, "Some Kidney Patients Die for Lack kidney available to individuals who had of Funds for Machine Treatment". This is a [From the Wall Street Journal, Mar. 10, 1969] suffered irreparable kidney damage and situation with which I have been familiar SOME KIDNEY PATIENTS DIE FOR LACK OF needed frequent blood washings. In minor for over a year as our closest friend became FuNDS FOR MACHnra TREATMENT-ARTIFI­ surgery, they permanently inserted small a kidney dialysis patient a year ago. This is CIAL ORGAN WORKS WELL, BUT USE Is COST­ plastic tubes in an artery and vein in a a problem which has been almost unbelieva­ LY-FEDERAL GRANTS, DONATIONS DWIN­ patient's arm or leg. During dialysis, the ble to me since becoming involved with it, DLE-INSURANCE DOESN'T MEET BILLS machine is easily connected to the body however, after reading the above article, (By Jim Hyatt) through those tubes; when the treatment is there are some things I have to say. finished, the tubes are plugged and cover.ed The effort to treat sufferers from chronic As a citizen of the United States, I cannot kidney disease by machine, which once prom­ with a small bandage. believe that our moral obligations have de­ ised to save thousands of lives a year, is Recently, some doctors have improved on teriorated to the point where we can spend floundering for lack of financial support. this method. By increasing the fl.ow of blood annually billioM of dollars to reach the through an artery and a vein, they enlarge moon, billions of dollars on a war in Vietnam High costs have plagued the so-called arti­ them to the point where they can be easily which I wlll neither defend or criticize be­ ficial kidney program from the outset. Hos­ punctured with large needles for connection cause I honestly don't have an opinion as to pital bills for the twice-weekly machine blood to the kidney machine. This makes the whether or not we should be there, billions "washings" that take over the kidneys' vital mechanics of dialysis about as simple as giv­ of dollars towards foreign aid for countries function of removing blood wastes and ad­ ing blood. who will not be our allies at times when we justing body chemistry now run from $10,- Dialysis is time consuming; the twice­ need them, to say nothing of the money be­ 000 to $20,000 annually per patient. That's weekly treatments take from six to 13 hours ing wasted on so-called poverty programs ot the main reason only about 1,700 Americans each, depending on the patient and model of currently receive the treatments, while an many kinds where the only ones seemingly machine used. But it ls painless, and patients benefiting from them are those at the su­ estimated 8,000 people will die this year for undergoing the life-long treatment can lead pervisory level, and yet, we have, according lack of them. a nearly normal life. Clyde Shields of Seattle, to statistics, hundreds of kidney patients But even this far from adequate situation who nine years ago received vein and artery who die annually because our good Govern­ is deteriorating. Federal grants have been implant.s from the University of Washington ment cannot see fit to provide the funds re­ running out at the 14 hospitals designated by team and became the first person to start quired to not only maintain, but further the U.S. Public Health Service about three regular dialysis by machine, still ls regularly improve upon the kidney dialysis centers years ago as demonstration centers for the employed as a mechanic. He ls 49 years old. process; without Government help, some of in the United States. THE ROLE OF TRANSPLANTS This article stated, "A bill now pending them have had to reduce the number of cases in Congress would commit new Federal they handle. Treatment by kidney machine isn't the money for artificial kidney programs, but its Some private hospitals have been forced only alternative open to victims of kidney prospects for passage aren't clear now. A into similar cutbacks because of difficulties in failure. Kidney transplant operations have similar bill made little headway last year." attracting donations to support patients who been performed since 1954 with a high and It also listed the kidney centers throughout can't pay the cost themselves. Indeed, private growing rate of success. Up to last year, the United States whose Federal grants ex­ support of any kind has been slow in coming. three-fourths of the transplant patients who received a kidney from a blood relative had pired on December 31, and that unless new COMING OUT SECOND BEST funds are obtained, many of these centers survived for at least one year after the opera­ "The cost per capita of the treatment ls an tion (people have two kidneys but can live will be phased out, and others will be unable overwhelming drawback when we approach to accept new kidney patients. with just one). The one-year survival rate organizations for help," says Dr. Frederic B. for a person who received a kidney from a I am ashamed to think that this great Westervelt, director of the kidney care dem­ cadaver was 45 % . country Whose abilities and aspirations have onstration center at the University of Vir­ The utility of this operation ls limited, been unlimited, has a body of men and ginia School of Medicine in Charlottesville. women in Washington, D.C. who feel they however. Many kidney patients might not "They say, 'Look what we can do for $10,000 survive a transplant operation because of have the right to pass judgment on the great a year-we can give 20 people an artificial leg.' number of these people who need financial poor general physical condition, and not When they measure what they think is the nearly enough suitable organs are available support. I will admit that there are many greatest good for the greatest number, we for those who could benefit. Only about similar situations where financing is neces­ come out second best." 2,000 kidney transplants have been made in sary. There is only one difference--those peo­ As a result of this lack of funds, hospital the past 14 years, an average of less than ple who have lost the use of their kidneys committees that once spent weeks agonizing 150 a year. have no other alternative-they will die over which artificial kidney candidates would Moreover, transplant candidates often re­ without kidney machines. The same cannot receive the life-giving treatments, called quire dialysis. They usually must undergo the be said for many, many other people on hemodialysis or simply dialysis, now find treatment while awaiting an organ, and they poverty programs. I, personally, cannot even that the decision has been taken out of their must fall back on the machine if the op­ conceive that any one person could live with hands. "Who gets the care here now is deter­ eration fails. himself if he were part of a group of people mined purely by ability to pay-we don't like Amid the general gloom over the outlook deciding whether or not to pass legislation it, but that's the way it is," says Dr. Daniel for artificial kidney treatment, some see a which would further this program to the Leb of the Louisville (Ky.) General Hospital's hopeful sign in the recent trend for more 11882 CONGRESSIONAL RECORD- HOUSE May 8, 1969 patients to receive machine dialysis at home the largest state program; according to Dr. would be responsible for administering the instead of 1n a hospital. The savings from Ira Greifer, medical director for the National kidney disease programs and for providing such a move can be substantial. The first­ Kidney Foundation, Medicaid in New York coordination of Federal aotivi ties in the pre­ year bill for home dialysis, including $3,000 helps pay dialysis bills for more than half of vention and treatment of kidney disease. The to $4,000 to purchase the artificial kidney the state's 400 dialysis patients and the state Secretary would be authorized to appoint a machine itself and fees for training a family has set up a Kidney Disease Institute to co­ Direotor and such additional personnel as are member to run it, usually total about $10,- ordinate the various public and private kid­ necessary to carry out the bill and other re­ 000. After that, it costs $3,000 to ~5.000 a year ney treatment projects. But state officials say sponsibilities as the as the Secretary may to maintain the machine and buy the vari­ that about 900 New Yorkers a year need the assign to the Office. ous components and chemicals that must treatments, and their efforts help only a frac­ Subject to the regulations issued by the be changed after every use. tion of those who need financial help. Secretary, the Office would assist in estab­ About 200 of the 1,700 Americ'l.ns on ma­ Ordinary types of heal th insurance often lishing kidney center programs. The assist­ chine dialysis currently are treated at hon'le, pay some costs of dialysis but typically fall ance would consist of providing information, and some kidney specialists say they have short of meeting the actual expenses. The services, and grants for planning, training, high hopes that the number will rise sharply average maximum major medical policy bene­ instruction, renovation, and percentage con­ in the next few years. In 1967, the U.S. Public fit of $10,000 "just about covers the prelimi­ tributions toward the operation of kidney Health Service moved to accelerate the trend nary steps to start a patient on dialysis," says centers. by setting up 12 home treatment training L. A. Orsini, an official of the Heal th Insur­ A "kidney center" would mean: centers around the country and promising ance Association, a New York-based trade ( 1) A regional kidney center established them $4 million over a five-year period. group. within, or as part of, a medical school or But many experts in the field strongly INSURERS ARE HESITANT hospital that has demonstrated a high level doubt that home care will assume the ma­ A few companies now offer kidney treat­ of professional competence in relevant medi­ jority of the treatment burden in the near ment policies. Western States Life Insurance cal disciplines. The purpose of such a. center future. They point out that some patients Co. in Sacramento, Calif., for instance, sells a would be (a) to train medical and support don't have a relative who can assume the $50,000 maximum benefit group policy for an personnel; (b) provide transplantation treat­ job of operating the complex artificial kid­ organ transplant or dialysis. However, most ment for patients with chronic uremia ney, others don't have homes where the private insurers have been reluctant to enter where this form of therapy is indicated; (c) treatments can be safely carried out and the field. provide dialysis treatment when medically in­ still more have strong fears about entrusting Persons covered by the Federal Medicare dicated in connection with training, research, themselves to the care of a family member program for the elderly receive little aid for and transplantation; (d) engage in research when a mistake could prove fatal. Moreover, dialysis. Medicaid, the Federally assisted pro­ and development of new techniques; (e) to even patients who intend to purchase their gram adopted by some states to help low-in­ coordinate with and establish appropriate re­ own artificial kidney must receive hospital come people pay medical expenses, provides lations with one or more local community dialysis for several months while a relative more aid-$25 for each in-hospital dialysis dialysis units; and (/) to assure that knowl­ is being trained to run the machine. treatment-but still leaves substantial bills. edge and treatment of kidney disease will What's left for some kidney disease suffer­ evolve in a balanced fashion. THE FINANCIAL SQUEEZE ers, then, is charity. While organized support (2) A community dialysis unit established To date, the financial squeeze has been for kidney care has been slow in coining, in­ in conjunction with and in continuing re­ hardest on the hospitals picked by the Fed­ stances abound of local largess in individual lationship with a regional kidney center. The eral Government in 1965 and 1966 to demon­ cases. Last Christmas, for example, residents purpose of a community dialysis unit would strate the feasibility of the widespread use of Whitesville, Ky., a town of fewer than be (a) to provide a central training and of artificial kidneys. The Federal grants­ 1,000, raised $26,000 in four days for Roscoe treatment facility for the care of persons hav­ which totaled $2.5 million-paid the opera­ French, a 33-year-old carpenter for whom ing cronic kidney disease; {b) providing tional costs of the kidney centers and per­ machine dialysis represented the only chance training and supervision to physicians, staff mitted them to admit patients who couldn't a.t life. members, and to patients who are candidates pay for their own treatments. Federal funds . Even well-off victims may end up needing for home dialysis; and (c) to foster and pro­ for medical projects go only for research or charity. "If you aren't indigent when you mote the availability and wider use of the treatment-demonstration purposes, not for start dialysis, you soon will be," says one equipment and techniques of home dialysis. dally general patient care, so the centers physician. The amount of any grant to carry out this knew the funds might not be renewed when program would have to include (1) 100% the grants expired. But many of them felt H.R. 16217 of the cost directly related to training of that the Government wouldn't cut them Title: Kidney Disease Treatment and Pre- physicians, staff members, patients, and their oft' after having made a commitment. vention Act of 1968 ·families; (2) 100% of the cost for construc­ Since it became clear that the grants Author: Nelsen (R) Minn. tion or renovation of existing facilities and would stop in the wake of the Government Introduced: March 26, 1968 for the necessary equipment to establish a economy drive caused by the war in Viet­ Committee: Interstate & Foreign Com­ regional kidney center; (3) 60-90% of the nam, the centers have moved to pare their merce cost for construction or renovation and for rolls. None have summarily cut off any pa­ Purpose: To provide assistance to certain necessary equipment to establish a com­ tients, but when a patient receives a trans­ non-Federal institutions, agencies, and orga­ munity dialysis unit (the percentage contri­ plant or moves to home care, he isn't nizations for the establishment and opera­ butions would be determined on the basis replaced. tion of regional and community programs for of the economic status of the particular com­ The center at Cleveland's Mt. Sinai Hos­ patients with kidney disease and for the con­ munity pursuant to guidelines established pital, for instance, now has only 17 patients duct of training related to such programs. by the Secretary); and (4) 90 % the first year on dialysis, down from 30 in 1967; its Federal Provisions: The bill states tha.t it is the of full operation; 60% the second year; and grant expired Dec. 31. The unit at the Uni­ purpose of this program to provide financial 30 % the third year and thereafter, of the versity of Alabama Medical Center in Birm­ support through grants to public and non­ operation and maintenance costs of regional ingham now only accepts patients likely to profit schools of medicine, hospitals, agen­ kidney centers and community dialysis units receive transplants fairly quickly; if new cies, and institutions to assist in the estab­ established under the bill (grants could be funds can be obtained, it plans to phase out lishment and operation of regional and com­ in a lesser amount if the Secretary determines its artificial kidney program as soon as other munity prevention and treatment programs that the centers and units are capable of facilities can't be found for its 15 present for patients with kidney disease and for meeting a larger share of operational costs). patients. training related ·to such programs. Three years after the Secretary publishes PAY IN ADVANCE The bill authorizes the appropriation of notice in the Federal Register that applica­ The center at Hennepin County General $20 Inillion for fiscal 1969, and $30 million tions will be received for grants under the Hospital in Minneapolis, whose Federal grant annually in the four succeeding fiscal years, program, the President would have to trans­ expired Dec. 31, now requires some prospec­ to carry out these purposes. mit to the Congress any recommendations he tive patients to put $12,000-funds for at least The Secretary of HEW, after consultation may wish to make concerning the program. one year's care-in an escrow account before with the National Advisory Committee on The bill would establish a 12-man National they can begin dialysis. "A couple of people Kidney Disease Programs (established by Advisory Committee on Kidney Disease Pro­ have felt they'd rather die than spend the the bill), would have to prescribe general grams composed of four Federal employees amount of money involved," says one doctor regulations and guidelines concerning (1) eli­ and eight others not in the employ of the at the hospital. gibility of public or nonprofit agencies for U.S., appointed by the Secretary, who are A bill now pending in Congress would com­ grants; (2) determination of cost with re­ leaders in the fields of the basic medical mit new Federal money for artificial kid­ spect to which the grants may be made; (3) sciences related to kidney disease, its diag­ ney programs, but its prospects for passage terms and conditions under which the grants nosis and treatment, community health pro­ aren't clear now. A similar bill made little would be made; and (4) the assurance that grams, or public affairs. head way last year. all grants are coordinated with any existing The Advisory Committee's duties would be The outlook for developing other sources of regional plan for a kidney disease program to advise and assist the Secretary of HEW funds is even less bright. Only a half dozen in a particular area. in the preparation of regulations and as to states support dialysis patients, and few The bill would establish in the Department policy matters arising with respect to admin­ others show signs of following. New York has of HEW an Office for Kidney Centers which istration of the bill as it pertains to kidney May 8, 1969 CONGRESSIONAL -RECORD- HOUSE 11883 disease or diagnosis, treatment and ·. care of matter; I have decided to introduce a bill imperative and I wish to encourage my patients suffering from such disease. After into the House to define more clearly the colleagues to give it their careful con­ its establishment, the Committee would con­ boundaries of the Indiana Dunes Na­ sideration and attention. In this en­ sider all applications for grants which per­ tional Lakeshore, within the. lines drawn deavor, I welcome their support and tain to kidney disease and the diagnosis, treatment, and care of pat ients suffering for on the proposed map of the Park Service. assistance. such disease; it would make recommenda­ My goal is to provide for a Federal park tions to the Secretary with respect to the in the industrial area of Indiana that wou!d be feasible, desirable, and practi­ FINANCIAL DISCLOSURE BY approval of applications and the amount of JUDICIARY grants. cal. The boundaries, which are clearly The Committee would also review and defined in my bill in legal terms, encom­ (Mr. TAFT asked and was given per­ make recommendations on kidney disease pass those undeveloped areas remaining mission to address the House for 1 min­ programs of Federal agencies including, but in the community which have historic ute, to revise and extend his remarks, not limited to, those in the VA, the PHS, and value and conservation significance, and and include extraneous matter.) the Vocational Rehabilitation Administra­ Mr. TAFT. Mr. Speaker, recent dis·­ tion so that the methods, facilities, and pro­ which lend themselves to development grams of these agencies can best be utilized as recreational facilities. The areas in­ closures relating to fees received by a in supporting prevention and treatment pro­ dicated in my bill as the boundaries of member of the Supreme Court suggest grams for kidney disease. Particular atten­ the national lakeshore would be: The the immediate need for legislation to tion would have to be given to the coordina­ area lying west of Ogden Dunes known as provide for :financial disclosure by mem­ tion of activities of Federal agencies in a the Inland area; The area lying south bers of the Federal judiciary and em­ given region so as to insure adequate geo­ and west of Dunes Acres known as the ployees of the judicial branch. graphical distribution of services and to Dunes Acres area; and the area known as Studies in this field have been made avoid duplication. Pinhook Bog. for some time by our former colleague in The head of each Federal agency is au­ These areas encompass approximately the House, now a Member of the other thorized and directed to cooperate with the body, the junior Senator from Michigan, Secretary of HEW in carrying out the bill. 3 square miles, including almost 2 miles The blll authorizes the appropriation of of Lake Michigan shoreline. Exempted Senator GRIFFIN, and he is introducing a "such sums as may be necessary" to carry from my bill are those highly developed bill today covering the subject. I expect, out its provisions. areas which encompass several hundred today, to introduce an identical bill in The bill would become effective on the first homes, bus and railroad lines, highways, the House. day of the first month which begins after public utility lines and services. Not only Hopefully, early consideration will be its date of enactment. would confiscation of those homes and given on both sides of the Capitol. It is businesses result in substantial hardship merited by the broad and justified public to the present occupants, but would re­ alarm and needed to help restore confi­ INDIAN~ DUNES NATIONAL sult in permanent loss of local tax dence in our Federal court system. LAKESHORE revenues so badly needed to provide edu­ The effect of the bill will be to require (Mr. LANDGREBE asked and was giv­ cation, transportation, protection, and all Federal judges, including Justices of en permission to extend his remarks at other services of vital importance in a the Supreme Court and the Chief Jus­ this point in the RECORD and to include fast growing community. tice, and judicial employees compen­ extraneous matter.) I would like to point out further that sated at a rate in excess of $15,000 per Mr. LANDGREBE. Mr. Speaker, I within the confines of the existing 2,100- year, to file, in confidence but subject to would like to bring to the attention of my acre Indiana Dunes State Park, there are review by a majority vote of the Judi­ colleagues in the House a bill I have just preserved some of Indiana's finest re­ ciary Committee of either Chamber, ..ap­ introduced. It would define the bound­ maining dunes in addition to the :flora propriate information as to income, aries of the Indiana Dunes National and fauna peculiar to this area. Access sizable property holdings, gifts, hono­ Lakeshore, a proposed national park to the beaches of that park is provided rariums and fees. which lies within the Second District of to the general public at a very nominal More limited information as to con­ Inciana, which it is my privilege to rep- fee. tributions over $50, honorariums over resent. · It is my sincere opinion that the Fed­ $300, and fees for service would be re­ As you may know, Public Law 89-761 eral park as defined in my bill plus the quired to be filed for public inspection. establishes the national lakeshore to pre­ Indiana Dunes State Park will provide There is also included in the bill a sec­ serve for the educational and recrea­ adequate and reasonable recreational fa­ tion aimed at preventing conflict-of-in­ tional use of the public "certain portions terest situations through prior or later cilities as well as retention of areas of employment of judges and judicial em­ of the Indiana Dunes and other areas of education and conservation value. ployees. scenic, scientific, and historic interest The Federal Government now owns and recreational value in the State of about one-third of the land area of the Indiana." United States or about 765,000,000 acres. SECRETARY FINCH "A DOVE" ON No decision, however, as to the defini­ While I agree that we have an obliga­ CAMPUS WARFARE tive boundaries of this national lake­ tion to preserve for posterity certain (Mr. HARSHA asked and was given shor~ has ever been made, except the areas of great historical, recreational, permission to address the House for 1 general outline area on a map known as and natural value, I still subscribe to the minute, to revise and extend his remarks "A Proposed Indiana Dunes National proposition of private ownership of prop.:. and include extraneous matter.) Lakeshore"-LNPNE-1008-ID, Septem­ erty and feel that the destruction of Mr. HARSHA. Mr. Speaker, for ber 16, 1966. Most of the areas that are hundreds of homes which would result months, I have been warning that the indicated on this map as areas which from the development of this national national wave of campus-centered dis­ the Park Service would like to acquire for lakeshore park as it now stands is both order and violence was leading to greater, the national lakeshore have been found excessive and unnecessary. Further, I more far-ranging problems. to be controversial and disrupting to the must make mention in this case of the As author of 11.R. 10074, the Harsha residents of the area. Those whose homes extravagant waste of Federal funds bill to compel academic administrators and property would be taken for this which would be used to clear highly de­ to employ enough of their own backbone park have indicated that such land ac­ veloped land, much of which is com­ to control the uprising on their own cam­ quisition would cause them great incon­ pletely unsuitable for recreational pur­ puses, I have been asked, many times, to venience and hardship in terms of the poses and has no historic or conservation comment upon the reported statements loss of revenue and property as well as value. At a time when we have an enor­ in which Health, Education, and Welfare the uncertainty of future acquisition mous national debt, serious domestic Secretary Finch has objected to enact­ plans by the Park Service. Numerous problems, and large obligations in Viet­ ment of simple laws designed to deal with protests have come to my office request­ nam, surely a possible savings of $50 this problem even as he has complained ing action that would alleviate such million would be worthy of serious con­ that present laws are too complex to en­ hardship and wicertainty. sideration. force. After investigation and study into this I believe this legislation is needed and Through yesterday, following my own 11884 CONGRESSIONAL RECORD- HOUSE May 8, 1969 not enhance his position with the ad­ 1n sight, no hint that this trend will be re­ "testimony before the Subcommittee on versed.. Education, I chose to decline to comment ministration nor with the American The only alternatives suggested are quite on the Secretary's position as a "dove" people. elusive economies in government, unrealistic in the campus warfare. I did so despite Apparently he is of the same "ilk" as in the face of the needs a.nd demands for the fact that, by that time, Mr. Finch some of the university administrators. better schools, streets and sanitation. There was so far out of line with the positively is also the rising cost of armaments and the uttered statements by such well-advised fact that Congress appears unwilling to re­ and properly concerned ofiicials as the PERMISSION FOR COMMITTEE ON ject any appropriation asked in the name of · President, Vice President, and Attorney MERCHANT MARINE AND FISH­ defense. General that he was presenting that ERIES TO FILE CERTAIN RE­ There is a possible solution and it should PORTS be given the most careful consideration, al­ which, at best, was the embarrassing though it defies our current way of think­ problem which I assume the administra­ Mr. McFALL. Mr. Speaker, I ask unan­ ing. It is for the United States government tion would quickly repair. imous consent that the Committee on and the American people to enjoy the bene­ But now, Mr. Finch reportedly is dem­ Merchant Marine and Fisheries may fits from an orderly and continuous increase onstrating himself no longer content to have until midnigh-'li Friday, May 9, 1969, iii the nation's monetary wealth. The program would be as follows: After criticize efforts by Members of Congress to file certain reports. the preparation of the federal budget the who seek restoration of law and order, The SPEAKER pro tempore. Without decision would be made as to how much individual rights, and academic freedom. objection, it is so ordered. should be raised by taxation, and how much He is publicly reported as indulging him­ There was no objection. through the issuance of government bonds self in pique, not only that the President, or new currency. It is suggested that the Vice President, and Attorney General latter figure be not less than 10 or more than have publicly demanded law and order TAXES 20 per cent of the planned government spend­ and commonsense, but because he was ing. The SPEAKER pro tempore. Under a Thus in a budget of say $150 billion the not consulted before their statements previous order of the House, thE! gentle­ cost to the taxpayers would be reduced to were made. man from Florida Potsdam conference 1948 _____ 252. 3 224 .. 2 32. 9 83.8 had. been held. In this short time he had 1949 ______252. 7 217. 5 38.4 83. 0 Harry S. Truman succeeded to the Presi­ 1950______257. 3 241.1 39.5 83.8 dency. There was not very much in Mr. proven himself possessed of the admira­ 19~1______255.2 278.0 43. 9 90.5 Truman's earlier background to suggest ble attribute of a truly great leader­ 1952 ___ 259.1 291.4 65. 3 92.5 the ability to make important, quick de­ 1953 _____ 206. l 304. 7 74.1 93.2 that he would someday achieve the 1954 ______27L3 303. 1 67. 5 93.6 heights of being President. H'.) was born cisions with wisdom and with a maxi­ 1955 ______274.'4 331.11 64. 3 93.3 mum of understanding of the issues at 1956 ______272. 8 350. 8 66.2 94. 7 on May 8, 1884, in modest surroundings 1957______270.6 366.1 68. 9 98. 0 in Lamar, Barton County, Mo. At the age hand. 1958 ______276.4 367.8 71.3 100. 7 1959 ______of 4 he moved to Jackson County, just Mr. Truman loved to play the piano. 284 . .8 400. 0 80.3 101. 5 In 1960 ______'286. 4 414. 5 76. 5 103. 1 outside of Grandview, where as a young a cartoon which adorned the cover of 1961______81. 5 104.2 the book "The Truman Presidency" by 1962______289.2 427. 3 farmer, you will recall. his mother said. 298.6 457. 7 87. 7 105. 4 Cabell Phillips, he is shown sitbing at his 1963 ______306.4 481.9 92. 6 106. 7 "Nobody can plow a straighter furrow 1964 ______518. 1 97. 6 108. 1 piano with the sheet music 1n front of 1965 ______312. 5 than Harry.'' 317. 8 562.4 96. 5 109. 9 It him marked "Post-War Problems." His 1966 ______320. 3 616. 7 106. 9 113.1 was because of financial crises in the 1967 ______326. 7 649.o 125. 7 116. 3 family that young Truman had to take hands are not on the keyboard, because 1968 1__ __ _ 351.5 695. 0 137.1 120. 8 a job. He had no choice but to go to work. he is scratching his head with puzzle­ He did not have the chance to go to col­ ment at the sour notes in the music in t Estimates. lege. He desired to attend the Naval front of him. Sources: Bureau of the Budget and Treasury Department; Academy. But then there was that severe Notwithstanding, history will show Department of Commerce; Bureau of labor Statistics. case of diphtheria, which left him with that Harry Truman performed almost a Note : The figures on Government spending are the "old such poor eyesight that he could not miracle when . he established post-war concept" administrative budget, and do not include social qualify. stability 1n such a short time. On August security outlays. His real capacity for leadership was 8, 1945, we became the first major power first clearly demonstrated when he be­ to ratify the UN. Charter. HAPPY BffiTHDAY, MR. TRUMAN came -0::.ptain in -0ommand of Battery D, Just after World War II, Communist 129th Field Artillery. It was here that insurgency threatened the freedom of The SPEAKER pro tempore. Under there rose to the surface the fact that the people of Greece and Turkey, and previous order of the House, the gentle­ he was a leader of men. lie took com­ the response was the Truman doctrine man from Missouri (Mr. RANDALL) is rec­ mand of a poorly disciplined unit and sending technological and military aid ognized for 60 minutes. made it one of the best in the American that kept them free from the Communist Mr. RANDALL. Mr. Speaker, today we · Expeditionary Force in World War I. conquest. honor in the American tradition one of During the 8 years, less 83 days, Then, as a corollary to the Truman America's great Presidents, Harry S. that his administration was in power his doctrine, the 33d President resolved to Truman, our 33d President, upon the conduct was marked by great decisions create the North Atlantic Treaty Organ­ occasion of his 85th birthday. that were landmarks of historical sig­ ization to become the bulwark to con­ Prof. Clinton Rossiter, this country's nificance. They are so well known that tain the postwar Soviet imperialistic leading scholar on the Presidency, has they are easy to review. fronts. He had vision to realize that the written: Remember, it was only minutes after greatest protection for postwar Europe I am ready to hazard an opinion that Harry he took the oath of office that he made lay in the rebuilding of the war-torn Truman when history is written will win a his first great decision, and that was to countries. For this purpose he conceived place not only as a truly great President, but authorize the full support of the U.S. the Marshall plan which lifted Europe even as a national hero alongside Thomas Government in the San Francisco Con­ from the rubble of war to communities of Jefferson and the immensely popular Teddy prosperous people who could share fully Roosevelt. ference which created the United Na­ tions. in the postwar world. By most impartial and objective ob­ Of course, we all hope that the 85th He did not stop there. Mr. Truman servers, Mr. Truman has been con­ birthday will be a happy one for our argued his point 4 program for develop­ sistently ranked within the top half doz­ fQrmer President. It seems only yester­ ing nations who were emerging from en from among all of our Presidents in day, in spite of the fact that it was ex­ colonialism and who, with help, could terms of wisdom in office and courage actly 10 years ago tonight, that it was know the dignity which comes from cre­ to do that which he believed to be right my privilege as a freshman Member of ating and guiding their own destinies. for the country. Congress to be with him at the Waldorf­ A little later the Soviets were to test the His courage and his honest conviction, Astoria in New York upon the occasion courage of this man to maintain a free his outspoken determination to respond of his 75th birthday. On that occasion Berlin, by closing the land corridors. But to necessity have earned him a place of the principal speaker was the late Sam they did not know Mr. Truman. Instead, enduring fame in the annals of the Rayburn. he acted quickly and avoided an armed American Presidency. I shall not take the Then on another birthday it was my conflict by the ingenious Berlin airlift. time to detail all of the events of his honor to be present with Mr. Truman The people of West Berlin remained free earlier life, first at Lamar, where he was down at Lamar, Mo., when his birth­ because the blockade was thwarted. born, and then at Grandview, Mo., where place was made a national shrine. After World War II we were in an un­ he made his home as a youth. Because President Truman once said certain world. Yet it took a Harry S. Tru- May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11887 man, against the wishes of his advisers, become law. Most noteworthy is the one a man who could be trusted, because only 11 minutes to recognize the State of we have just mentioned, the health pro­ they believed that his loyalty was to Israel when he learned she had issued her gram for the aged which we call medi­ them, all of them, regardless of party. On declaration of independence. As a testi­ care today. Others are the voting priv­ election night so complete was his confi­ mony to his action, the Israeli people ileges for all Americans, and a measure dence that he went to bed after dinner, today are building an international cen­ which we considered the extension of in awaiting the results, and was awakened ter for the advancement of peace on this body only last week or the week be­ several hours later a little impatient Mount Scopus. fore, and that is aid to elementary and when some of his associates expressed By his own statement, the hardest de­ secondary schools. surprise that the announcement was cision he ever made as President was One of the marks of greatness of Mr. made that there was a turning of the to enter the Korean conflict. This was Truman was that during all the days of tide and he was going to win reelection. the first time the United States had acted his Presidency he never became a stuffed For a long time it was said, although in concert with others to preserve the shirt. He never succumbed to what he with the passage of time it is said much principles of international law, and we called "that ludicrous disease known as less frequently, that he was a good Presi­ did so successfully. Mr. Truman's own Potomac fever." His down-to-earth good dent. It is a fact almost universally con­ Executive decision to use U.S. troops to humor was always in evidence. At one ceded now. However, it was also said that defend South Korea was later endorsed time, when he was told that a speech to he was nonetheless no more than an by the Congress and by the United Na­ the American people, containing his re­ ordinary man. Now, nothing could be fur­ tions Security Council. These two things port on the Potsdam Conference, had ther from the truth. Harry Truman pos­ we have never been able to achieve in the been well accepted as a popular state­ sessed a most keen sense of history and Vietnam war. ment, he remarked: politics and a remarkable ability to de­ As a footnote to Korea, Mr. Truman It shows you never can tell; I thought it cide. He possessed sensitivity which in­ was required to exercise the monumental was a rotten speech. spired those about him with a devotion to courage to fire a popular wartime hero his person and his policies. Beneath all of whose long years of absence from the One of the most interesting years of these qualities and underlying his whole United States had dulled his perception the Truman Presidency is the never­ being was a strong faith in the power of of the relation between military and to-be-forgotten campaign of 1948. It was his God to lead those of his servants and civilian authority. that year Mr. Truman did not choose the those who trusted in his leadership. All he did as to Korea and for that political safety of polished phrases, Harry Truman's greatness was partly matter, in each of his major decisions, speeches delivered in cathedral tones and due to the unshakeable confidence in his was to follow the theme or principle of with the sort of above-politics image. It abilities, but it was a confidence that was a common factor which was to work to­ was almost inconceivable that any Presi­ indivisible from his acceptance of his ward the goal of a better world. dent would ever have to humble himself own limitations. He was a great Presi­ Let us not forget that it was Harry as did Mr. Truman in the 1948 campaign. dent precisely because he was an accu­ Truman that changed the Presidential Once he had to stand on a chair and rate judge of himself, wisely utilizing the seal, turning the eagle's head from the plead for money to move his campaign belief that he always trusted in a power left and the symbolic arrows of war in out of the city of Washington, over at greater than himself. Since ancient times Union Station. its left talon to the right, as Mr. Truman Mr. HECHLER of West Virginia. Mr. this wisdom and knowledge has not been said, a direction of honor facing the olive Speaker, will the gentleman yield? the mark of just an ordinary man. branches of peace. Mr. RANDALL. I am glad to yield to Mr. HECHLER of West Virginia. Mr. His unblemished record of success in Speaker, will the gentleman yield? foreign affairs was not always equaled the gentleman from West Virginia. Mr. RANDALL. I yield to the gentle­ in legislative and domestic affairs. Many Mr. HECHLER of West Virginia. Does man from West Virginia. of his Fair Deal bills were rejected by the the gentleman recall the famous head­ Mr. HECHLER of West Virginia. Mr. Congress, but he never lacked in per­ line in the Chicago Tribune, the early Speaker, all of us join in wishing Harry severance; even if one of his measures edition on 1948's election night, that Truman a happy birthday, his 85th birth­ was defeated, he would come up with a President Truman so joyfully held up, day. I think each year that passes raises new proposal of similar scope. Mr. Tru­ "Dewey Defeats Truman"? his stature in history as we reflect on his man once said that any President who Mr. RANDALL. I certainly do. It is one courage and the many landmark deci­ did not get in a fight with Congress or of cur prize possessions to have a copy sions which he made. Harry Truman had the Supreme Court had not done a good of that, along with the picture taken at a unique sense of how to make a decision job. the Mulebach Hotel when the announce­ and he had a sixth sense and an instinct Mr. HECHLER of West Virginia. Mr. ment was made that Dewey had finally for leadership. He knew exactly when to Speaker, will the gentleman yield? conceded defeat. make these strategic decisions which the Mr. RANDALL. I am delighted to yield The campaign of 1948 was certainly gentleman in the well has outlined. He to the gentleman from West Virginia. one of the most colorful in all campaign knew precisely when all of the facts and history, because in that campaign Mr. arguments were in and when it was nec­ Mr. HECHLER of West Virginia. Is it Truman captured the affection of the not true that President Truman first sug­ essary to sfap the top of the conference American people. It was that campaign table and say, "This is it." As everyone gested the great program of medical care, that showed the completely delightful which at the time he suggested it was knows, the sign on his desk was, "The side of the man that Americans could buck stops here." He certainly carried it criticized by opposition Members of the understand. Congress and by reactionary forces all out in everything he did and in the way over the country? He became the indefatigable cam­ he lived. Other men vacillated and other paigner. He won the election in his own men worried or lost sleep, but Harry Tru­ Mr. RANDALL. The gentleman is so right by his no-nonsense, straight-talk­ man always had the power of decision. eminently correct. ing, deliciously partisan, hard-hitting He also believed as President that the The 33d President lived to see the "Give 'em hell" style. He made a 36,000- power of national leadership should be medicare bill assigned in his presence by mile tour across the country from the used on behalf of those average people President Johnson at the Truman Li­ platform of a Pullman railroad car and who have no other spokesman. brary in Independence, Mo. told his message to the American voters. I had the great honor to work on the As you recall, Mr. Truman labeled the The crowds that came to hear him dis­ staff of President Truman and to travel 80th Congress the "Do Nothing Con­ cerned that Harry Truman was not a with him on many of his whistle-stop gress" and called it back into session. "do-nothing" man. Instead they saw a trips. When once again the Congress obliged worker and a fighter, a man who knew Mr. Speaker, many instances splash him by doing nothing, during the 1948 where we should be going as a nation. across my mind. I recall one occasion campaign which followed he blasted it They saw a man with the :firmness of when inflation was gripping this Nation as "That good-for-nothing Congress." conviction that comes from loyalty to to the detriment of the consumers of the I think it is important to note, as the principle. American citizens could see the country. President Truman called a gentleman from West Virginia suggested, fervent loyalty in this man, even in his number of the Members of the Senate that in the years since he has retired partisan speeches. They could see the and the House of Representatives down many of Mr. Truman's proposals have fabric of the man. They believed he was to the White House to ask their advice 11888 CONGRESSIONAL RECORD- HOUSE May 8, 1969 on what could be done. One Senator but he persevered. Thomas Paine once among his fellow Americans on the dis­ spoke up said, "I do not think there is referred to a person in a crisis having · trict level, the State level, and the Na­ anything really the trouble. I am not a tendency to act like a "sum.mer soldier tional level-and with remarkable re­ hearing from many consumers." and sunshine patriot." sults. President Truman's jaw stiffened as Harry Truman was neither. He was a As a student, he became accomplished he said, "I represent the consumers. man who did not hesitate to harness the at an early date in matters such as agri­ That is why I called you down here." :fioodtide of history by which lesser men culture, banking, and military tactics. He proceeded to exert his national lead­ would have been overwhelmed. He is He joined the National Guard in 1905 and ership on behalf of the unorganized, un­ truly an individual in whom the elements served 6 years, rising to the rank of represented people who do not have were so mix(d that all the world may say, corporal. In World War I he served in great high-paid lobbyists to speak for "This is a good man-this is a great France as captain of Battery D, 129th them. man." Field Artillery, 35th Division, engaging Mr. Speaker, Harry Truman was a Today we could not present President in the famed Saint-Mihiel and Meuse­ great campaigner, as the gentleman Truman with any gift that would ade­ Argonne offensives, from which he re­ from Missouri has indicated. But even quately tell him what is in our hearts. turned in 1919 to reenter civil life as a more he was the author and presided It is a joy to witness and share this, his haberdasher, and to get married. As his over truly great decisions like the crea­ 85th birthday. Mr. Truman is of strong wife he selected Bess Wallace, his child­ tion of United Nations, the NATO, the stock. By his own statement he said he hood sweetheart, whom he described as Truman doctrine, the Marshall plan, the was going to live to at least 90. It is a "the only girl I ever went with." Berlin airlift and the many other world­ privilege to have him as the first citizen As an entrepreneur, Han·y Truman en­ shaking decisions. of Independence, Missouri-our home countered the deflationary troubles of I also marveled at his ability to clari­ city-where he lives in the large beauti­ 1921 which quickly ruined his small busi­ fy extremely complex questions. This ful home at 219 Delaware street with his ness. But this was his last defeat. From was not a case of oversimplification. It beloved Bess. On June 28, 1969, he will there on, he was out to win, and win he was an ability to communicate in down­ have been married 50 years. While it may did. to-earth terms that everyone in this be a little over a month premature, we Turning to politics, he placed his name Nation could understand. He also had congratulate the President and his lady in contention, in 1922, for the Democratic an ability to look into the future. of their upcoming 50th wedding anni­ nomination for the office of judge of the I recall in March 1952 when he made versary. Today we salute this great man Jackson County Court. The court was not at that time the very stunning an­ on his 85th birthday. Happy birthday, judicial, despite its title, but more in the nouncement that he would not run Mr. Truman. It is a joy to wish you nature of a commission. He captured the again for reelection. We assembled in happiness on your birthday. Congratula­ the Cabinet Room, the members of his nomination, following a spirited cam­ staff, to work with him on the next tions on a happy 85th. Many happy re­ paign, and also carried the election. speech that he was to deliver. He pushed turns of the day. Jackson County, embracing Kansas the speech aside and said: Mr. McCORMACK. Mr. Speaker, in City, had an unfortunate reputation in keeping with the purposes of House Con­ We must start thinking about the transi­ this period, and many people associated tion, whoever is President after 1952. I want current Resolution 216, unanimously with it tended to arouse the public's in­ to be sure that the next President of the agreed to April 24, 1969, I should like on dignation through the sudden acquisition United States is very well briefed on the this occasion to extend to Harry S. Tru­ of wealth, far in excess of their official problems that confront the world and the man, 33d President of the United States, salaries. Not so, however, in the case of Nation so that he does not have to come in best wishes on his 85th birthday. "Judge" Truman. Of all the political the way I did, unfamiliar wit h these prob­ To honor such a man is an honor in leaders in Missouri, he was known from lems. itself and to be able to say, when he the outset as a paragon of honesty; the So, Mr. Speaker, we honor President passes by, "There goes a friend of mine," man who would never take a bribe or·do Truman as a man of decision, a man that surely is a first-class honor if ever a favor for a friend at the expense of of compassion, and a man who could there was one. This I know for a fact, simple justice. Word of this astonishing look into the future and plan for the because Harry S. Truman is one of my phenomenon spread rapidly in a region future. closest and dearest friends: He is a gen­ long familiar with rather different ways All of us join in saying, "Happy birth­ tleman of the highest type, the essence of doing business and performing the day, Harry S. Truman." of honor and integrity, a dedicated duties of public office. An honest man was Mr. RANDALL. I thank the gentleman scholar, and a man of astonishing intui­ on hand in Kansas City, and he seemed from West Virginia. tive ability and penetrating intellect. determined to establish honesty as a part Missourians will always remember the The life and times of Harry S. Truman of the machinery of government. Duly 33d President for his loyalty to the show­ will read in future ages something like appreciative, the Democratic Party nomi­ me State. During his term of office in the career of Horatio Alger, the prototype niated Harry Truman for U.S. Senator the White House "The Missouri Waltz" of American fictional heroes. Born of in 1934, and he was subsequently elected. a.lmost replaced "Hail to the· Chief" as Kentucky stock, in the wake of the Civil The record of crusader, established in the offi.cial song. Truman lore is easy to War, Harry Truman entered the world the Jackson County court, followed Harry find here in Washington. An example is under inauspicious circumstances. Times Truman to Washington, and in a short the Truman balcony added to the White were hard in Barton County, Mo., where time he was established as one of the House during its renovation. Then in he spent his early years, and opportunity leaders of liberal reform. Concerned Missouri in the form of the famous eques­ for advancement was slight. The so­ about increasing transportation prob­ trian statute of Andrew Jackson, who was called Gilded Age failed to bring pros­ lems, he helped conceive the Civil Aero­ Mr. Truman's favorite President. That perity to Missouri, and even after the nautics Act and the Railroad Transpor­ statue stands in Kansas City, and a rep­ Truman family removed to Independ­ tation Act of 1940. None of this was lica in Independence, which Mr. Truman ence, in 1891, the specter of poverty was seriously opposed, because everybody is described as the finest equestrian statue never totally removed from their sur­ in favor of transportation progress. But in America. roundings. Mr. Truman was chairman of a subcom­ Of course, there was another side of There is something to be said for know­ mittee investigating matters in Missouri, the coin. Some few people regarded Mr. ing the pain of poverty, if you are ever preceding construction of the Transpor­ Truman's Presidency as a national dis­ going to enter the political field. Nothing tation Act, and under his direction im­ aster. Some said that if Mr. Truman had is more disturbing than to witness the proprieties were discovered in Kansas been defeated in 1948, we would have complacency of those who have never City, to the great embarrassment of been spared the trauma of the McCarthy experienced poverty, shrugging off the many of his political associates. Pressure era. But the man of Independence to such need for economic improvement, on the was exerted to stop the investigations, critics once remarked, "I do not care a grounds that it can wait for awhile, just but Mr. Truman refused to let them be hoot what history says about me. I know so long as their own inconsequential proj­ stopped. In consequence of his exposes what I have done and that is good ects are instantly enacted and their own in Washington, other investigations were enough. I did what had to be done." interests constantly protected. inaugurated in Missouri, revealing­ Mr. Truman faced many difficult days. Harry Truman knew a lot about pov­ among other things-the existence of a Lesser people would have wanted to quit, erty, and fought all his life to prevent it bogus registration list. containing the May 8, 1969 CONGRESSIONAL RECORD- HOUSE 11889 names of 47 ,000 nonexistent voters. All of opponents dedicated to undoing their serve today the 85th birthday of former these names had been voted for Mr. Tru­ policies. This was the ca-se, certainly, so President Harry S. Truman. Less than man in 1934 and they would now be voted far as Harry Truman was concerned. It a quarter of the men and women who no longer. It began to look as though his was also the case with regard t;o George now serve in the House of Representa­ honesty had paid off in the form of his Washington. tives served here when Harry Truman own political demise. But when he sought When Washingt;on left the White was President. But his good qualities as reelection in 1940, he received the rousing House, following 8 years of firm Federal a President are known to all and ac­ endorsement of his constituents, with a control over the infant American Re­ knowledged by , most. Harry Truman margin of 40,000 votes to spare. public, he could hear on every side the when confronted with vital matters The war years, 1941to1945, found Mr. voice of his critics. Was he right in fol­ made policy choices. He did not play Truman at the head of the Special Com­ lowing Hamilton's conservative lead in politics with vital issues. He was doughty mittee To Investigate Contracts Under the establishment of the original Federal and candid in an era when the soft-sell the National Defense Program-a title economic program? His critics did not and the soft-soap and the public rela­ that was shortened in the press to the think so. Was he right in supressing the tions too often dominate our public men. more concise "Truma:ri. committee." In its Whiskey Rebellion? His critics did not He was not always correct. No President first annual report, the Truman commit­ think so. Was he right in avoiding fur­ is. But no one had to look . behind the tee exposed the waste of $100 million in ther conflict with England? His critics political bushes to find out where Harry Army construction work and detailed the did not think so. Truman was located on civil rights, fair "extraordinarily poor judgment" shown They would show him. They would housing, unification of the armed serv­ in many other wartime expenditures. undo the National Bank, weaken the ices, desegregation of the military forces, Truman committee reports were re­ Federal auth0rity in behalf of States foreign aid, Korea, West Berlin, Taft­ sponsible for the abolition of the Supply rights and drive the British out of Can­ Hartley, and development of the atomic Priorities and Allocation Board, in 1942, ada. Or so they said. But when all was bomb. On all the wide range of burden­ in favor of the O:ffice of Production Man­ said and done, none of this occurred. As some problems confronting any Presi­ agement. Further exposes by the com­ it turned out, the National Bank was left dent, Harry Truman was there-iden­ mittee brought about the establishment standing, the Federal authority re­ tifiable and taking the heat in the po­ of the highly efficient War Production mained strong and the British-though litical kitchen. He needed no special as­ Board; broke up cartel agreements be­ nudged a bit in the War of 1812-re­ sistant to run to the Hill and tell Mem­ tween American and German industries; tained control of Canada. In the end it bers of Congress what "the President ended the scrap shortage that was ham­ had to be conceded that George Wash­ really meant." It was all there in the pering the war effort; cut down on mal­ ington's program was, in fact, good morning newspaper. He solicited and re­ practice by labor unions and faulty enough to keep. ceived indispensable Republican support production on the part of several major The same, you will recall, was the re­ for his determined and firm policies in manufacturers; and forced the better co­ action of many of Harry Truman's op­ respect to foreign affairs. When Truman ordination of the entire American war ponents to his departure from the Pres­ did not receive such support from a program. idency in 1953. Much was said about the member of his own party, he fired him­ At the Democratic National Conven­ changes that were going to take place. ! refer t;o Henry Wallace, Secretary of tion, Mr. Truman was nominated for Vice Much was prophesied as to the whirl­ Commerce. The foreign assistance pro­ President, on the strength of his work wind revamping that would be required gram, about which some Johnny-come­ as ·head of the Truman committee. In once "the man from Missouri" was out latelys often complain,_ was inaugurated November of that year he acceded to the of the White House. But what occurred during the Truman administration fol­ second highest office in the land, and with along this line? Not very much, a-s I re­ lowing Secretary of State Marshall's the death of President Roosevelt on April call. In fact, it seemed as though those, landmark speech at Harvard College in 12, 1945, Harry Truman became Presi­ who were going to undo Harry Truman's June 1947. The Marshall plan helped to dent of the United States. policies, wound up letting them alone, to reconstruct ravaged and vulnerable na­ It has been said that President Tru­ an extraordinary extent. Why? Because tions in Western Europe-notably Italy man assumed office at one of the most those policies were good ones-good for and France. Great Britain was a bene­ unpropitious moments in history for a the Nation and good for the world. ficiary. President Truman, with the sup­ change of leaders. At this point, without It wa-s President Harry Truman who port of his courageous Secretary of State, experience in the field of national ad­ linked the American destiny with that of Dean Acheson, firmly set out t;o counter­ ministration, he was required to take a West Europe, under the terms of the act the probing aggression of the Soviet leading part in winning World War II, NATO alliance. It was he who inaugu­ Union and China in both Europe and making the peace, establishing the rated the Marshall plan, which stopped Asia. United Nations, reconverting from a war­ the spread of communism across the His firm declarations, such as the Tru­ time to a peacetime economy, and helping European continent. It was he who called man doctrine and subsequent supportive the wartorn lands. Moreover, in moving the bluff of communism in Asia, by actions, helped fend o:ff Soviet Union into the White House at this juncture, meeting the Red menace in Korea. It was aggression in such vital locations as Harry Truman had t;o follow Franklin D. he who desegregated the U.S. Armed Iran, West Berlin, and South Korea. Roosevelt, the most colorful and popular Forces. It was he who brought the Na­ But Harry Truman used a plowshare, President to hold office since Theodore tion through 7% years of prosperity, too. His inaugural address in 1949 set Roosevelt, a half century before. Franklin without let-up. forth a so-called point 4 program of Roosevelt had already been classed Under the circumstances, it will be technical assistance to developing na­ among the political immortals in Ameri­ necessary for history to accord a high tions who have benefited in their strug­ can hist.ory. How, then, could Harry Tru­ place to this remarkable man-Harry S. gle to create stable, healthy and repre­ man be expected to make a fair showing? Truman, of Independence, Mo.-just as sentative conditions for their people. Could he, walking in the shadow of his the American people accord him a high Some would tell us that Harry Tru­ -predecessor, dare aspire t;o greatness? place in their hearts today on the occa­ man was partisan. Well, there is room The facts, I think, are clear enough to­ sion of his 85th birthday. for partisanship in some aspects of the day. Indeed, Harry Truman was able, in He saw his duty and performed it, Presidency. But these were the opening his two terms as President, to establish with a will and with the energy and abil­ words of Harry Truman when he ac­ himself among the list of the great Amer­ ity required of his great office. You can cepted his party's nomination in Phila­ ican Presidents. The fact, I think, is un­ well imagine the pride that is mine in delphia in the summer of 1948: deniable, on its face, and easily supported knowing that this man-of great mind, We meet in this convention not only as by the record. great heart and great accomplish­ Democrats but as Americans to promote the It is a notable fact that the greatest ments--is my friend. welfare of our country and the happiness of American Presidents have been in­ It is therefore my distinct pleasure to of our people. clined to arouse the greatest storm of salute my friend and my former Presi­ Health care, equal opportunity, fair activity while they are in office, both in dent on this day, and to wish him more employment, better housing-these and favor of, and in opposition to, their poli­ happy birthdays in the future, birthdays other programs he offered to a Congress cies. It is also a notable fact that the in a world that has been made a better that was most often heedless. greatest of American Presidents have de­ one by his leadership. In January 1953, President Truman parted from office with their outraged Mr. BOLLING. Mr. Speaker, we ob- left the White House-just as rugged 11890 CONGRESSIONAL RECORD - HOUSE May 8, 1969 and hard-fighting as ever. He left be­ Means .committee will not consider social and, in the case of trade, our relationships hind a Presidential record, a reading of security legislation in the first session of this throughout the world. There are also other Congress. The articles further stated that due matters pending involving expiration dates, which indicates his policies diverted and to the pressing business before the Ways and such as the surcharge, and the Interest dammed the totalitarian tides that were Means Committee, including tax reform leg­ Equalization Tax, etc. lapping at free countries in the tumul­ islation and the surtax, coupled with the Finally, I have repeatedly stated that the tuous years immediately following the need for action this year on important trade development of the further schedule of the conclusion of World War II in Septem­ legislation which will be considered later by Committee on Ways and Means will be ac­ ber 1945. the Com·mittee, that it would be impossible complished by the Committee itself when Mr. HULL. Mr. Speaker, it is an honor for the Committee to consider any social se­ we complete action on the pending busi­ for me to join with my colleagues on curity proposals during this first session. ness, namely, tax reform. In other words, The articles also indicated that you as when we complete action on these items, this occasion in paying tribute to former Chairman favored a 10 percent increase in the subject of our further schedule will be President Harry S. Truman on his 85th social security benefits instead of the 7 per­ open for consideration in the Committee. birthday anniversary. cent increase which was proposed by the Ad­ Social Security matters are always given It is our sincere hope and prayer that ministration. high priority in the Committee. Let me Harry Truman and his devoted wife will As a member of the 91st Congress and as a point out, however, that there are issues in­ be with us for many more years to come member of the Ways and Means Committee, volved in the Social Security program in and that they will continue to enjoy I am very concerned at these reports which addition to a benefit increase which need health and happiness. point up a delay il". adequate increases in to be considered, including such things as Because of President Truman's many social security benefits to the 22 million so­ the proposal to extend hospital benefits to cial security beneficiaries who are feeling the the disabled. I know you also agree that we major contributions to this country as cruel effects of the inflationary impact of the must develop a greater benefit increase than one of our most effective Chief Execu­ last several years. Their needs cannot face the 7 percent which has been proposed. tives, his presence among us remains as any further delay. As a matter of fact, several As I have assured you and other Mem­ an inspiration to those who believe in a million senior citizens on social security bers, we will move from one major sub­ government of law and who are opposed have been forced into below poverty levels ject to the next just as soon as we possibly to the vicious concept of a government because of the inflationary impact and the can, considering the necessity to legislate spiraling cost of consumer goods and health carefully and soundly. We cannot consider represented by tyrants. everything at the same time. We obviously I know that I speak for all the peo­ care. Under the circumstances, I urge that the have not ruled out the possibility of con­ ple in the State and congressional dis­ Ways and Means Committee consider this sideration of Social Security 1eg1s1at1on in trict which I represent when I extend important legislation in this session of the this Session, but looking at the problems birthday greetings to this great Ameri­ Congress so that we can respond to the ur­ realistically, our task will be dimcult. In can and Missourian. gent needs of our senior citizens who must any event, it would be my hope that the Mr. FINDLEY. Mr. Speaker, it is a not be overlooked. Social Security beneficiaries would be able pleasure to join my colleague in saluting Sincerely yours, to receive a really meaningful benefit in­ former President Truman on his birth­ CHARLES A. VANXK, crease at the earliest practicable date. Member of Congress. Sincerely yours, day. WILBUR D. MILLS, As President he exhibited rare courage Today I received the following letter Chairman. in prosecuting the war in the Pacific in from Chairman MILLS: Mr. Speaker, these letters are sub­ World War II, and rare vision in launch­ Hon. CHARLES A. VANIK, ing programs which made possible the mitted for the information of the Mem­ U.S. House of Representatives. bers of this body on the issues which reestablishment of free institutions in DEAR CHARLES: I appreciate receiving your have been raised. most of Western Europe. I also salute him letter of even date strongly urging that the · for his leadership in the construction of Committee on Ways and Means consider So­ NATO, a free-world community which cial Security legislation during this Session SOCIAL SECURITY BENEFITS has just observed its 20th anniversary. of the 91st Congress. SHOULD BE INCREASED Many happy returns. As you know, since the opening days of this Session, the Committee on Ways and (Mr~ HECHLER of West Virginia Means, in accordance with the schedule de­ asked and was given permission to ad­ GENERAL LEAVE TO EXTEND termined by the Committee at that time, has dress the House for 1 minute.) been engaged daily in public hearings, and Mr. HECHLER of West Virginia. Mr. Mr. RANDALL. Mr. Speaker, I ask is now in executive sessions, on the subject unanimous consent that all Members of broad tax reform. Not only is this in ac­ Speaker, I would like to commend the may have 5 legislative days to extend cordance with the schedule as determined gentleman from Ohio cial security opportunity. He realized that it involved FORD, DONALD M. FRASER, JOHN C. KLU:. matters. a good deal of study and self-discipline czYNSKI, RICHARD D. McCARTHY, Wn.LIAM I would imagine, and the chairman in­ and fully expected to live within certain T. MURPHY, and J. WILLIAM STANTON. All dicated by his letter, that we can expect reasonable bounds and conduct himself of these Members joined in introducing there will be a tax reform bill through in such a manner as to not intrude on similar legislation last session. the House by early August so that it is the rights of others. The bill provides that the $148 million my hope that immedia.tely after that I am confident, Mr. Speaker, that the of outstanding St. Lawrence Seaway De­ we might move on into this matter of majority of our young people still ap­ velopment Corporation ind,.,.btedness to social security. proach academic life with this philos­ the U.S. Treasury shall be converted into Mr. HECHLER of West Virginia. Mr. ophy. permanent U.S. investment in the Sea­ Speaker, I share the concern of President Nixon recently made the way Corporation. This is very simply ac­ the gentleman from Ohio and the statement that administrators and trus­ complished by exchanging preferred chairman of the Ways and Means Com­ tees "should have the backbone to stand stock of the Seaway Corporation for its mittee as to the paramount importance up" against acts of violence. $129 million of outstanding 50-year of meaningful and effective ta.x reform. In addition, Attorney General John bonds and $19 million of accrued inter­ I hope too that not only can social se­ Mitchell and other administration om­ est debt. curity benefits be raised by 10 percent cials have spoken out forcefully on the In dollars and cents terms, the Seaway but also that reforms be written into need for school o1Hcials to take control Corporation would no longer be obligated the social security system to make it work and put an end to the strife and chaos. to repay its $148 million debt, which it in a fairer fashion. I am sure the gen­ I am in agreement with the positions must now pay by the year 2009. Instead, tleman from Ohio will not relax in his taken by these o1Hcials and urge them it would continue to pay, and would pay efforts to try to b1ing this issue of the to follow through on their recommenda­ forever, to the U.S. Treasury a fair need for reform as well as an increase tions. dividend return on the Government's under the social security law forcefully The great majority of our college stu­ equity investment. This dividend would to the attention of his committee and of dents are sincere, hard-working young be the same amount which the Seaway the Congress. people who are trying to prepare them­ Corporation is now paying to the U.S. Mr. VANIK. I pledge to work toward selves for the future. But in many places, Treasury in interest payments. that goal. these students have had their education On the basis of the Seaway Corpora­ Mr. HECHLER of West Virginia. I disrupted and delayed for months by tion's own estimates of cargo to be ship .. thank my colleague, the gentleman from those who are intent on promoting dis­ ped on the Seaway over the next 4 years,. Ohio. cord and violence. the Corporation will fall hopelessly be­ I say the time has come for our col­ hind in meeting its present statutory leges and universities to adopt a get­ VIOLENCE ON THE CAMPUSES financial obligations. The St. Lawrence tough policy in dealing with these Seaway Act of 1954, as amended in 1957, ligations of the United States ma­ struction, and ·the other two-thirds is turing more than five years thereafter. Houston ship channel $34,449,257 in con­ used to subsidize operating and mainte­ struction costs and· $32,605,276 in op­ " ( d) The capital stock of the Corporation nance costs. may be redeemable at the option pf the erating and maintenance costs; the Mr. Speaker, by any measure the bill Corporation in such manner as may be stipu­ Sacramento deep water channel, $39,- which my colleagues and I have joined lated in such obligations." 551,254 in construction costs and $10,- in introducing today is truly a modest SEC. 2. Subsection (a) of section 12 is 740,586 in .opera.ting and maintenance proposal. It is in keeping with the prin­ amended by adding after the first sentence costs; and the Mobile, Ala., channel, ciple of the 1954 St. Lawrence Seaway thereof the following sentence: "The division $14,275,026 for construction costs and of the revenues of the seaway may be based . Act--that the St. Lawrence Seaway is to on the respective annual costs of the Corpo­ $15,221,599 for operating and mainte­ pay the full costs of its construction and nance costs. ration and the St. Lawrence Seaway Au­ operation. No Federal subsidy is provided thority of Canada only if comparable costs INLAND WATERWAYS PAY NO CAPITAL COSTS AND for in this bill. are used in arriving at the division." GET SUBSIDY FOB OPEBATING COSTS The bill in no way puts the seaway on a SEc. 3 (a} Paragraph (4) of section 12(b) Over $2 billion of Federal funds have comparable footing with other major of such Act (33 U.S.C. 988(b) (4)) is amended been invested in inland waterways in U.S. transportation systems, all of which to read as follows: addition to some $113 million annual continue to enjoy large direct or indirect " ( 4) That the rates prescribed shall be appropriations for their operation and calculated to cover, as nearly as practicable, Government subsidies of capital ex­ the costs of operating and maintaining the maintenance. The Northwest Ordinance penses, operating and maintenance ex­ works under the administration of the of 1787 established the principle, specif­ penses, or both. Corporation, payment of cumulative divi­ ically reaffirmed in the Rivers and Har­ In terms of the seaway's financial dends on the capital stock of the Corporation, bors Act of 1909, that tolls will not be dilemma, the bill works no miracles. The and payments in lieu of taxes." charged for use of these waterways. As Seaway Corporation would continue to (b) Paragraph (5) of such section (33 a result, not 1 cent of this huge capital be financially responsible for all major U.S .C. 988(b) (5)) is repealed. investment has been repaid. costs of the great waterway. As a result, LAND GRANTS TO RAILROADS A FORM OF SUBSIDY the Seaway Corporation would probably A NEW AMERICAN INDIAN POLICY In the period from 1850 to 1871 the continue to operate in the red until some Nation's railroad companies received 56 million tons of cargo annually are The SPEAKER pro tempore. Under a Government land grants of about 183 carried over the seaway. Last year 48 mil­ previous order of the House, the gentle­ million acres. According to a joint eco­ lion cargo tons were shipped. It is esti­ man from Wisconsin (Mr. KAsTENMEIER) nomic committee study, the value of mated that the 56-million-ton level will is recognized for 10 minutes. this aid given to railroads came to near­ be reached sometime in the early 1970's. Mr. KASTENMEIER. Mr. Speaker, ly $1.3 billion. The arrangement was The bill, however, is clearly sufficient Indian reservations, as alienated socially that this subsidy would be paid off over to achieve its objective: it would elimi­ as urban ghettos and far more isolated time by giving the Government special nate any foreseeable need for increasing geographically, are the purest examples low shipping rates. This form of long­ seaway toll rates above their present of underdeveloped enclaves within Amer­ term payment, still being made to the levels, either in the next four shipping ican society. Federal Government, cannot be con­ seasons, 1969 to 1972, inclusive, or there­ Reservation Indians today cling by sidered analogous to the seaways' in­ after; and within the next decade it choice to the remnants of forest and terest burden and requirement to re­ would probably make possible a decrease plain that once they roamed without pay invested capital. There is no way in the present toll rates. bounds. They eke out an existence from May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11893 a land base too small to support their whose reservations have been terminated. tration of the Indian programs and the numbers. They cherish and maintain the For example, after termination of the need for adequate Federal flinds to as­ unique traditions of the first American Menominees in my State of Wisconsin, sist this progress. I am also pleased to civilizations, traditions distinct for the a county controlled by the Indians re­ announce that a number of my distin­ recognition of the oneness of mankind placed the reservation. Due to the low guished colleagues have ageed to cospon­ with nature. income level of the Indian inhabitants, sor this concurrent resolution. They are The price of preserving traditions need Menominee County has an insufficient Messrs. ANDERSON of California, BROWN not be poverty, although poverty is the tax base, which necessitated the drastic of California, BURTON of California, price that reservation Indians have paid, curtailment of social services and a solic­ FRASER, HELSTOSKI, KOCH, MIKVA, OT­ generation after generation, for nearly itation of outside investment that could TINGER, POLLOCK, ROSENTHAL, and RYAN. a hundred years. Fifty thousand Indian erode Indian control of tribal enterprises. Mr. Speaker, if the American Indians families today live in unsanitary, dilapi­ In recent years, with an increasing In­ are to escape from the economic and psy­ dated dwellings. The unemployment rate dian population and a growing complex­ chological depression created by past among Indians is nearly 40 percent, more ity of reservation problems, appropria­ policies, the Federal Government must than 10 times the national average. Of tions for Indian programs have risen, but cease attempts to determine the course the Indians who do work, a third are consistently have stayed well below a level of development and undertake a commit­ underemployed in temporary or seasonal needed to carry out intentions. Indian ment to assist Indian communities to jobs. Fifty percent of Indian families programs will continue to limp along, advance toward goals of their own choos­ have cash incomes below $3,000. With and development will proceed at an un­ ing. The best hope for Indian progress rare exception, Indian communities are satisfactory pace. In addition, because lies in the emergence of Indian involve­ so underdeveloped that there is little, if of the rapid increase in the Indian popu­ ment and leadership in solving Indian any, opportunity for significant social or lation, there is every prospect that their problems. economic, education, and health levels economic progress. will drop steadily behind those of the Fifty percent of Indian schoolchildren, rest of the population. DR. C. PAUL VICKERS-TRIBUTE TO double the national average, drop out For Indians on the reservations, any A FRIEND before completing high school. Ten per­ program for social and economic devel­ The SPEAKER pro tempore. Under a cent of American Indians over age 14 opment must be specifically tailored to previous order of the House, the gentle­ have had no schooling at all. Nearly 60 Indian needs and culture. The Indian man from Florida uraged and inspired with names of all free-world or Communist the numher of trips that each vessel has his humor and his example. flagships trading with North Vietnam, made to North Vietnam. Whenever I needed him, he was there but only those which are considered po- The material follows: and things will never be quite the same for us again. I cannot conceive of having 1969 FREE WORLD FLAG SHIP ARRIVALS IN NORTH VIETNAM to go through a political campaign with­ out Doc Vickers at my side. United Somali He was married to the former Mar­ Kingdom Cyprus Singapore Japan Republic Total garet Stoutamire, daughter of long-time January ______1 --~------2 11 Leon County sheriff and Tallahassee February ______6 1 2 1 ------10 chief of police, Frank Stoutamire. He March ______------6 ------1 7 was devoted to his daughter, Mrs. Larry April______7 ------1 1 9 C. Watts, and so completely prouc:. of his Total______------27 2 37 grandson, Paul Vickers Watts, that he received a new lease on life at th9 birth [Department of Commerce, Maritime Admin­ Flag of registry and name of ship--Continued of this young man. Gross He loved Tallahassee and its people, istraition, Report No. 26] LIST OF FOREIGN FLAG VESSELS ARRIVING IN Tonnage 1 and they loved him. De>c could count his NORTH VIETNAM ON OR AFTER JANUARY 25, Meadow Court (trip to North friends almost by the thousands. He was 1966 Vietnam under ex-name Ard­ that kind of man. Section 1. The President has approved a rossmore-British ------5, 820 I know of his work in the veterinary policy of denying the carriage of United Rochford------3,324 Rosetta Maud 1 (trip to North Viet- medical profession from having talked States Government-financed cargoes shipped under ex-name Ardtara-Britlsh_ 5, 795 to other veterinarians through these past from the United States on foreign :flag vessels Ruthy Ann______7, 361 which called at North Vietnam ports on or 7 years. De>c wanted the highest of stand­ Shun On 1 (trip to North Vietnam ards and he felt that every man who after January 25, 1966. under ex-name Pundua-Brit- practiced must certainly share the love The Maritime Administration is ma.king available to the appropriate United States ish) ------7,295 and concern he felt for his chosen field. Government Departments the following list Shun Wah (previous trip to North Veterinary medicine is poorer for his of such vessels which arrived in North Viet­ Vietnam. under ex-name Ver­ having passed, but it is richer for his charmian--British) ------7, 265 nam ports on or after January 25, 1966, based Shun Wing______6, 987 having lived. on information received through April 11, I suppose that is what I wanted to say 1969. This list does not include vessels under Taipieng (tanker)------~----- 5,676 Tetrarch (previous trips to North about Doc. He was such an intensely the registration of oountrles, including the Soviet Uni<>n and Communist China, which Vietnam under ex-name Ard­ happy man that he would not want us rowan-British ------7, 300 to be sad. He would be the first to want normally do not have vessels calllng at United States ports. us to pick up and move forward, enjoy­ Cypriot (4 ships)------14, 4Hl ing every day as it comes. Flag of registry and name of ship His family misses him, but I am sure Gross Acme ------7, 173 tonnage their sorrow is lightened in knowing of Amfithea ------­ 5,171 Total, all flags, 55 ships ______370, 959 the esteem itnd affection in which he was J,f arianthi ------2, 137 held by his fell ow veterinarians and his friends. Polish (32 ships)------243, 514 Somali (2 ships)------13,531 I think I speak for all of us when I Andrzej Strug ______6,919 Happy Dragon 2 ______4, 534 say that the highest privilege of my life Beniowski ------­ 10,443 Yvonne (tanker)------8, 997 is that I could call Doc Vickers my friend. Djarkata ------­ 6,915 And I know full well that I was just Emilia Plater------6,718 Greek (1 ship): Leonis 1 (trip to one of many. Energetyk ------10,876 North Vietnam under ex-name Florian Ceynowa ______6,784 Shirley Christine-British)------6, 724 Somehow I think he would have liked General Sikorski______that. 6,785 Hanka Sawicka ______6,944 Panamanian ( 1 ship) : Salamanca 1 Hanoi ------6, 914 (trips to North Vietnam under ex- SHIPPING TO VIETNAM Hugo Kollataf------3,755 n ame Milford-British) ------1, 889 Jan Matejka ______6,748 The SPEAKER pro tempore. Under a Janek KrasickL------6,904 Singapore (1 ship): Lucky Dragon_ 4, 225 Jozef Conrad, ______8,730 previous order of the House, the gentle­ 1 Ships appearing on the List which have Capitan Kosko ______6,629 man from Michigan (Mr. CHAMBERLAIN) made no trips to North Vietnam under the is recognized for 5 minutes. Kochanowski ------­ 8,231 present registry. Konopnicka ------­ 9,690 2 Mr. CHAMBERLAIN. Mr. Speaker, the 10, 363 Added to Report No. 25 appearing in the Department of Defense has advised me Kraszewski ------­ Federal Register issue of March 11, 1969. Lelewel ------7,817 that during the month of April there Ludwik SolskL ______6,904 Section 2. In accordance with approved were nine more free world-flag ship ar­ Marceli Nowotko ______6,660 procedures, the vessels listed below which rivals in North Vietnam. Of these seven Mickiewicz ------­ 4,344 called at North Vietnam on or after Janu­ flew the British flag, with one of each Moniuszko ------9,247 ary 25, 1966, have reacquired eligibility to under the registry of Japan and the Norwid ------5,512 carry United States Government-financed Somali Republic. This brings the total so Nowowiejski ------­ 9,186 cargoes from the United States by virtue of . 4, 911 the persons who control the vessels having far for 1969 to 37 free world arrivals and Pawel Find.er------Phenian ------6,923 given satisfactory certification and assur­ while it is encouraging to note that this Przyjazn Narodow ______8,876 ance: amounts to a reduction from the 43 ar­ Stefan Okrzeja ______6,620 (a) That such vessels will not, thence­ rivals during the same period in 1968 this Szymanowski ------­ 9,203 forth, be employed in the North Vietnam traffic must remain a matter of deep con­ Transportowiec ------­ 10,854 trade so long as it remains the policy of the cern so long as American soldiers are Wieniawski ------­ 9,190 United States Government to discourage fighting and dying in South Vietnam. I Wladyslaw Broniewski ------6,919 such trade and; urge the new administration to continue (b) That no other vessels under their its efforts with respect to this uncon­ British (15 ships)------~----- 86,595 control will thenceforth be employed in the scionable situation. North Vietnam trade, except as provided in Court Harwell______7, 133 paragraph (c) and; At this point, I insert a chart and re­ Fortune Glory ______5,832 (c) That vessels under their control which port No. 26 "List of Foreign-Flag Vessels Golden Ocean ______3,827 are covered by contractual obligations, in­ Arriving in North Vietnam on or After Greenford ------2,964 cluding charters, entered into prior to Jan­ January 25, 1966," issued by the U.S. Isabel Erica ______7,105 uary 25, 1969, requiring their employment Maritime Administration on April 11, Kingford ------2, 911 in the North Vietnam trade shall be with- May 8, 1969 CONGRESSIONAL RECORD- HOUSE 11895 drawn from such trade at the earliest oppor­ Mr.ZwAcH. tion, the Commissioner of the District of tunity consistent with such contractual ob­ Mr. MINSHALL. Columbia, and the Chairman of th.e ligations. Mr. MESKILL. Washington Metropolitan Area Transit Flag of registry and name of ship Mr.CONTE. Authority, transmitting a draft of pro­ a. Since last report: None. Number Mr. BLACKBURN. posed legislation to authorize a Federal b. Previous reports: of ships Mr. ASHBROOK in two instances. contributi-0n for the effectuation of a British ------1 Mr.KLEPPE. transit development program for the Na­ Italian ------1 Mr. GOODLING. tional Capital regi"on, and to further the Section 3. The following number of ves- Mr. MICHEL in two instances. objectives of the National Capital Trans­ sels have been removed from this list since Mr. TAFT in two instances. portation Act of 1965 <79 Stat. 663) and they have been broken up, sunk or wrecked. Mr. POLLOCK. Public Law 89-774 (80 Stat. 1324), was Gross Mr.HUNT. taken from the Speaker's table, and re­ a. Since last report: tonnage Antonia II (Cypriot)---:------7, 303 Mr.HARVEY. f erred to the Committee on the District Dartford (British)------2, 739 Mr. SCOTT. of Columbia. Shun Tai (Somali)------7, 085 Mr.HOGAN. b. Previous reports (broken up, sunk, Mr.GUDE. or wrecked) : Mr.HOSMER. REPORTS OF COMMITTEES ON PUB­ LIC BILLS AND RESOLUTIONS British ------4 Mr. WINN. Cypriot ------5 Mr. BROYHILL of Virginia in three in- Under clause 2 of rule XIlI, reports Clreek ------1 stances. of committees were delivered to the Clerk Lebanese ------2 Mr. MILLER of Ohio in two instances. for printing and reference to the proper l\1:altese ------1 calendar, as follows: Polish ------1 Mr. SHRIVER. Mr. WYMAN in two instances. l\1:r. JOHNSON of California: Committee on By Order of the Maritime Administrator. Mr. BOB WILSON. Interior and Insular A1faim. S. 1011. An act Date: April 11, 1969. Mr. CUNNINGHAM in five instances. to authorize appropriations for the saline JOHN 1\1:. O'CONNELL, water conversion program for fiscal year 1970, Assistant Secretary. Mr. BROTZMAN. Mr. SNYDER. and for other purposes; with amendment (Rept. No. 91-208). Referred to the CQill.lllit­ Mr. BROCK in two instances. tee of the Whole House on the State of the LEAVE OF ABSENCE (The following Members t. No. 91-191). Re­ revise and extend remarks was granted Speaker, I move that the House do now ferred to the Committee of the Whole House. to: Mr. MANN: Committee on the Judiciary. adjourn. R.R. 1749. A bill for the relief of Eagle Lake Mr. PHILBIN in five instances. The motion was agreed to; accordingly R. Timber Co., a partnership, of Susanville, Calif. Mr. GERALD FORD immediately fol­ (at 1 o'clock and 56 minutes p.mJ, (Rept. No. 91-192). Referred to the Commit­ lowing the special order of Mr. PATMAN under its previous order, the House ad­ tee of the Whole House. today. journed until Monday, May 12, 1969, at l\1:r. MANN: Committee on the Judiciary. (The following Members Colorado, Health Service Act to provide assistance to ditions governing eligibility of blind persons Mr. FASCELL, Mr. FISH, Mr. GAL• certain non-F~deral i.nstitutions, agencies, to receive disability insurance benefits there­ LAGHER, Mr. HANLEY, Mr. HANNA, Mr. and organizations for the establishment and under; to the Com.mttee on Ways and Means. HAWKINS, Mr. HOWARD, Mr. JACOBS, operation of regional and community pro- May 8, 1969 CONGRESSIONAL RECORD - HOUSE 11897

grams for patients with kidney disease and By Mr. RYAN: Korea as is presently provided !or those in for the conduct of training related to such H.R. 11104. A bill to amend title II of the Vietnam; to the Committee on Ways and programs; to the Committee on Interstate Social Security Act so as to liberalize the Means. and Foreign Commerce. conditions governing eligibility of blind per­ By Mr. YATRON: By Mr. POLLOCK: sons to receive disability insurance benefits H .R. 11115. A bill to amend the Internal H.R. 11094. A bill to amend title 10 of the thereunder; to the Committee on Ways and Revenue Code of 1954 to encourage higher United States Code to permit the use of Means. education, and particularly the private tund­ naval vessels and aircraft in the enforcement By Mr. ST GERMAIN: ing thereof, by authorizing a deduction from of State fishing laws; to the Committee on H.R. 11105. A bill to amend title II of the gross income of reasonable amounts con­ Armed Services. Social Security Act so as to liberalize the tributed to a qualified higher education fund H.R. 11095. A bill to designate the third conditions governing eligibility of blind per­ established by the taxpayer for the purpose Sunday in October of each year as "Foster sons to receive disability insurance benefits of funding the higher education of his de­ Parents Day," and for other purposes; to the thereunder; to the Committee on Ways and pendents; to the Committee on Ways and Committee on the Judiciary. Means. Means. By Mr. PUCINSKI: By Mr. ST. ONGE: By Mr. CHAMBERLAIN: H.R. 11096. A bill to establish the Federal H .R. 11106. A bill to amend the Immigra­ H .J. Res. 707. Joint resolution to amend the Medical Evaluations Board to carry out the tion and Nationality Act, and for other pur­ Pledge of or Allegiance to the :flag of the functions, powers, and duties of the Secre­ poses; to the Committee on the Judiciary. United States of America.; to the Committee tary of Health, Education, and Welfare re­ By Mr. SCHWENGEL: on the Judiciary. lating to the regulation of biological prod­ H.R. 11107. A bill to exempt from the anti­ By Mr. FRELINGHUYSEN: ucts, medical devices, and drugs, and for trust laws certain combinations and ar­ H.J. Res. 708. Joint resolution proposing an other purposes; to the Committee on Inter­ rangements necessary for the survival of fall­ amendment to the Constitution of the United state and Foreign Commerce. ing newspapers; to the Committee on the States relative to equal rights for men and By Mr. RARICK: Judiciary. women; to the Committee on the Judiciary. H.R.11097. A bill to amend the Merchant By Mr. STEIGER -of Wisconsin (for By Mr. PODELL: Marine Act, 1936, as amended, by inserting himself, Mr. BROCK, and Mr. H .J. Res. 709. Joint Resolution proposing a new title X to authorize aid in developing, COLLINS): an amendment to the Constitution of the constructing, and operating privately owned H.R. 11108. A bill to develop and strength­ United States relative to equal rights for men nuclear-powered merchant ships; to the en a systematic National, State, and local and women; to the Committee on the Ju­ Committee on Merchant Marine and Fish­ manpower policy and provide !or a compre­ diciary. eries. hensive delivery of manpower services; to By Mr. RARICK: H.R. 11098. A bill to amend title II of the the Committee on Education and Labor. H.J. Res. 710. Joint resolution proposing an Merchant Maline Act, 1936, to create an By Mr. TAFT (for himself and Mr. amendment to the Constitution to add the independent Federal Maritime Administra­ GERALD R . FORD) : words, "so help me God" to the President's tion, and for other purposes; to the Com­ H.R. 11109. A blll to provide for financial oath Of office; to the Committee on the mittee on Merchant Marine and Fisheries. disclosure by members of the Federal judi­ Judiciary., H.R. 11099. A bill to prevent vessels built ciary; to the Committee on the Judiciary. By Mr. ROYBAL: or rebuilt outside the United States or docu­ By Mr. ULLMAN: H.J. Res. 711. Joint resolution designating mented under foreign registry from carcytng H.R. 11110. A bill to afford protection to the first Sunday in June each year as "Na­ cargoes restricted to vessels of the United the public from offensive intrusion into tional Teachers Day"; to the Committee on States; to the Committee on Merchant Ma­ their home through the postal service of the Judiciary. rine and Fisheries. sexul}lly oriented mall matter, and for other By Mr. KASTENMEmR (for himself, H.R.11100. A bill to promote and foster purposes; to the Committee on Post Office Mr. ANDERSON Of California, Mr. the development of a modern merchant ma­ and Civil Service. BROWN of California, Mr. BURTON rine by encouraging the orderly replacement By Mr. UTT (for himself and Mr. of California, Mr. FRAsEB, Mr. HEL­ and mode~ation of merchant vessels, and BURTON of California): STOSIU, Mr. KOCH, Mr. MXKVA, Mr. !or other purposes; to the Committee on H.R. 11111. A bill to amend pa.rt A of title OTTINGER, Mr. POLLOCK, Mr. RoSEN­ Merchant Marine and Fisheries. IV of the Social Security Act to repeal the THAL, and Mr. RYAN) : By Mr. REUSS: limitation upon the number of children H. Con. Res. 245. Concurrent resolution H.R. 11101. A bill to provide for a more With respect to whom Federal payments may expressing the sense of the Congress that conservative capitalization of the St. Law­ be made under the ptogra.m of aid to fam­ the Government's concern for its Indian citi­ rence Seaway Development Corporation, and ilies with dependent children; to the Com­ zens be formalized in a new national policy !or other purposes; to the Committee on mittee on Ways and Means. offering self-determination and self-help fea­ Public Works. By Mr. VANIK: tures !or the people involved; to the Com­ By Mr. ROGERS of Florida (!or him­ H.R. 11112. A bill to amend title II of the mittee on Interior and Insular Affairs. self, Mr. JARMAN, Mr. SATTERFIELD, Social Security Act to provide a 15-percent, By Mr. MORSE: Mr. KYROS, Mr. PREYER Of North Car­ across-the-board increase in monthly bene­ H. Con. Res. 246. Concurrent resolution, olina, Mr. NELSEN, Mr. CARTER, Mr. fits, with subsequent cost-of-living increases support of gerontology centers; to the Com­ SKUBITZ, and Mr. HASTINGS): in such benefits and a. minimum primary mittee on Education and Labor. H.R. 11102. A blll to amend the provisions benefit of $80; to the Committee on Ways By Mr. WHALLEY: of the Public Health Service Act relating to and Means. H. Con. Res. 247. Concurrent resolution the oonstructi9n and modernization of By Mr. WOLFF (for himself, Mr. expressing the sense of Congress that U.S. hospitals and other medical facilities by BINGHAM, Mr. BURTON . Of California, Route 219 should be designated as part of providing separate authorizations of appro­ Mr. CABELL, Mr. CAMP, Mr. CLEVE­ the Interstate System; to the Committee on priations for new construction and for mod­ LAND, Mr. CONYERS, Mr. CORBETT, Mr. Public Works. ernization of facilities, authorizing Federal DICKINSON, Mr. DoNOHUE, Mr. ED­ By Mr. CHARLES H. WILSON: guarantees of loans for such construction and WARDS of Louisiana, Mr. FEIGHAN, H. Con. Res. 248. Concurrent resolution, modernization and Federal payment of part Mr. FISH, Mr. WILLIAM D. FoRD, Mr. support of gerontology centers; to the Com­ ot the interest thereon, authorizing grants GALIFIANAKIS, Mr. HANNA, Mr. mit tee on Education and Labor. for modernization of emergency rooms of HOWARD, Mr. KEE, Mr. KLEPPE, Mr. By Mr. FASCELL: general hospitals, and extending and making McCARTHY, Mr. MizE, Mr. MYERS, H. Res. 400. Resolution requesting the other improvements in the program author­ Mr. OBEY, Mr. OTTINGER, a.mi Mr. President to urge the Soviet Union to process ized by these provisions; to the Committee PATrEN): the requests of 50,000 Soviet citizens for re­ on Int erstate and Foreign Commerce. H .R. 11113. A bill to amend the Internal unions with their families who are outside By Mr. RUMSFELD (for himself, Mr. Revenue Code of 1954 to provide the same the U.S.S.R.; to the Committee on Foreign ANDREWS of North Dakota, Mr. BELL tax exemption for servicemen in and around Affairs. Of California, Mr. BROOMFIELD, Mr. Korea as is presently provided for those in COLLINS, Mr. CORBETT, Mr. COWGER, Vietnam; to the Committee on Ways and Mrs. HEcKLER of Massachusetts, Mr. Means. PRIVATE BILLS AND RESOLUTIONS HORTON, Mr. JOHNSON Of Pennsyl­ By Mr. WOLFF (for himself, Mr. Po­ vania, Mr. MCDADE, Mr. MCEWEN, DELL, Mr. PREYER of North Carolina, Under clause 1 of rule XXII, private Mr. MCKNEALLY, Mr. MAYNE, Mr. Mr. PRICE of Illinois, Mr. POWELL, bills and resolutions were introduced and POLLOCK, Mr. PRICE Of Texas Mr. Mr. RAILSBACK, Mr. RARICK, Mr. severally referred as follows: SCHADEBERG, and Mr. SMITH of New ROBISON, Mr. SAYLOR, Mr. ScHEUER, By Mr. BIAGGI: York}: Mr. THOMPSON of New Jersey, Mr. H.R. 11116. A bill for the relief of Helena. H.R. 11103. A bill to improve the operation TuNNEY, and Mr. WHITEHURST) : Pysna; to the Committee on the Judiciary. o! the legislative branch o! the Federal Gov­ H .R , 11114. A bill to amend the Internal By Mr.KOCH: ernment, and for other purposes; to the Revenue Code of 1954 to provide the same H.R. 11117. A bill for the relief of Sonja M. Committee on Rules. tax exemption for serviecmen in and around Gozum; to the Committee on the Judiciary.