October 29, 1975 CONGRESSIONAL RECORD-HOUSE 34267 ance with the previous order, that the DEPARTMENT OF JUSTICE rectors of the Overseas Private Investment Joseph A. Nardoza, of VirllDia, to be a Corporation for a term expiring December Senate stand in adjournment until 9 17, 1977. o'clock tomorrow. member of the Board of Parole for the term The motion was agreed to; and, at expiring September 30, 1977, vice Philip H. DEPARTMENT OF STATE Modlin, resigned. 4:48 p.m., the Senate adjourned until Hans N. Tuch, of Dlinois, a Foreign Service Charles J. Pooler, of Maine, to be U.S. information officer of class 1, for promotion Thursday, October 30. 1975 at 9 a .m. marshal for the district of Maine for the to the class of Ca.reer Minister for Informa­ term of 4 years vice John H. deWinter, tion. resigned. DEPARTMENT OF TRANSPORTATION NOMINATIONS Hamilton Herman, of Connecticut, to be Executive nominations received by the CONFffiMATIONS an Assistant Secretary of Transportation. (The above nominations were approved Senate October 29, 1975: Executive nominations confirmed by subject to the nominees' commitment tore­ DEPARTMENT OF S TaTE the Senate October 29, 1975: spond to requests to appear and testify be­ Nathaniel Davis, of New Jersey, a Foreign NATIONAL COMMISSION ON ELEC'rRONIC fore and duly constituted committee of the Service officer of the class of Career Minister, FUND TRANSFERS Senate.) to be Ambassador Extraordinary and Pleni­ William B. Widnall, of New Jersey, to be IN THE COAST GUARD potentiary of the United States of America Chairperson of the National Commission on Coast Guard nominations beginning to Switzerland. Mary s. Olmsted, of Tennessee, a Foreign Electronic FUnd Transfers. Charles F. Hahn, to be captain, and ending Service officer of class 1, to be Ambassador OVERSEAS PRIVATE INVESTMENT Gerald A. Parr, to be lieutenant, which nom­ Extraordinary and Plenipotentiary of the CORPORATION inations were received by the Senate and United States of America to Papua New Herbert Salzman, of the District of Co­ appeared in the Congressional Record on Guinea. lumbia, to be a member of the Board of Di- September 29, 1975.

HOUSE OF REPRESENTATIVES-Wednesday, October 29, 1975

The House met at 12 o'clock noon. how many professional level women em­ CONGRESSMAN JOHN J. ROONEY The Chaplain, Rev. Edward G. Latch, ployees we have got. Iowa equally divided and controlled by the chair­ This means more debt and I suspect Duncan, Oreg. Madden Smith, Nebr. man and ranking minority member of the that it will be close to $80 billion before Duncan, Tenn. Madigan Spellman Committee on Ways and Means, the bill fiscal year 1976 comes to an end. du Pont Maguire Staggers shall be read for amendment under the five­ Edgar Mahon Stanton, Mr. Speaker, this deficit spending can­ Edwards, Ala. Mann J. William minute rule. No amendment to section 3 of not go on as the interest alone on our Edwards, Calif. Matsunaga Stanton, said bill and no amendment to said bill to debt now approaches $36 billion annually Eilberg Mazzoli James v. change t:J.e 4~ per centum interest rate ceil­ ErlenbOrn Meeds St ark ing on bond Issues contained in section 1 of and Government borrowing is once again Eshleman Melcher Steed the Second Liberty Bond Act, as amended forcing interest rates to rise. Evans, Colo. Metcalfe Steelman Evins, Tenn. Meyner Steiger, Ariz. (31 U.S.C. 752) shall be in order, except Mr. Speaker, I do not think that the Fascell Mezvinsky S tephens amendments offered by direction of the Com­ American people want this to continue. Fenwick Michel Stokes mittee on Ways and Means, but said amend­ However, they should send this Congress Findley Mikva Stratton ments shall not be subject to amendment. a message loud and clear that they do Fish Miller, Cali!. Stuckey At the conclusion of the consideration of not want it to continue, but to date, they Fisher Mineta Studds the bill for amendment, the Committee shall Fithian Minish Sullivan rise and report the bill to the House with have failed to do so. Flood Mitchell, N.Y. Symington Mr. Speaker, I have no requests for Florio Moak.ley Talcott such amendments as may have been adopted, Flowers Moffett Taylor, N.C. and the previous question shall be considered time, but I think this is a matter that Flynt Mollohan Teague as ordered on the bill and amendments should be fully and completely debated Foley Montgomery Thompson thereto to final passage without intervening on the floor today. Ford, Mich. Moorhead, Pa. Thone motion except one motion to recommit. Ford, Tenn. Morgan Thornton Mr. BOLLING. Mr. Speaker, I move Forsythe Mosher Traxler The SPEAKER. The gentleman from the previous question on the resolution. Fountain Moss Treen The previous question was ordered. Frenzel Mottl Tsongas Missouri is recognized for 1 hour. Frey Murphy, Til. ffilman Mr. BOLLING. Mr. Speaker, I yield The SPEAKER. The question is on the Fuqua Murtha Van Deerlin 30 minutes to the gentleman from Ohio resolution. Giaimo Myers, Ind. Vander Jagt The question was taken; and the Gilman Myers, Pa. VanderVeen (Mr. LATTA), and pending that I yield Gonzalez Natcher Vanik myself such time as I may consume. Speaker announced that the ayes ap­ Goodling Neal Vigorito Mr. Speaker, this is the same kind of peared to have it. Gradison Nichols Waggonner Mr. SNYDER. Mr. Speaker, I object to Gude Nolan Walsh rule under which this matter has been Guyer Nowak Wampler considered in recent years. It is a modi­ the vote on the ground that a quorum is Hagedorn Oberstar Waxman fied closed rule. not present and make the point of order Hall Obey Weaver that a quorum is not present. Hamilton O'Brien Whalen There was no opposition to the rule Hammer- O'Neill White when the chairman and the ranking The SPEAKER. Evidently a quvrum is schmidt Ottinger Whitehurst minority member of the Committee on not present. Hanley Passman Whitten The Sergeant at Arms will notify ab­ Hannaford Patman, Tex. Wilson, Bob Ways and Means appeared as witnesses. Harkin Patten, N.J. Wilson, C. H. I know of no serious opposition to this sent Members. Harrington Patterson, Wilson, Tex. rule. The vote was taken by electronic de­ Harris Calif. Winn vice, and there were-yeas 320, nays 70, Hastings Pattison, N.Y. Wirth Mr. LATTA. Mr. Speaker, I yield my­ Hawkins Pepper Wright self such time as I may consume. not voting 43, as follows: Hayes, Ind. Perkins Wydler Mr. Speaker, I agree with the state­ [Roll No. 646] Hays, Ohio Pettis Yates Heckler, Mass. Peyser Yatron ment just made by the gentleman YEAS- 320 Hefner Pickle Young, Tex. from Missouri Georgia with l'vlr. Sarasin. tions, we might well have to consider the tion at this time because it believed there 1\il·s. Mink with Mr. Udall. debt limitation again before March. were dangers in encouraging too great Mr. Lehman with Mr. Wiggins. The President's tax proposal, which a shift to long-term maturities because Mr. MOAKLEY changed his vote from calls for a $28 billion tax cut beginning long-term interest rates have not been "nay" to "yea." January 1, 1976, would increase the defi­ as responsive as short-term interest Mr. LEVITAS changed his vote from cit over and above what is assumed here rates to the decline in economic activity. "yea" to "nay." by something like $6 billion in the fiscal This additional exception certainly will So the resolution was agreed to. year 1976. If that proposal would prevail, provide the Treasury with adequate The result of the vote was announced it would necessitate returning to the debt :tlexibility until we reconsider the debt as above recorded. limitation earlier next year than March. limitation in March. At that tim"e, Con­ A motion to reconsider was laid on The very large deficit of some $72 bil­ gress can consider whether the exception the table. lion now anticipated for the fiscal year should be further enlarged in light of Mr. ULLMAN. Mr. Speaker, I move 1976 reflects the very deep recession that the distribution of the debt maturities. that the House resolve itself into the we have gone through this last year. A The committee has given this bill care­ Committee of the Whole House on the recession of this severity was exceeded ful attention and has developed as re­ State of the Union for the consideration only by the Great Depression of the early strictive a limitation on the debt as is of the bill (H.R. 10049) to increase the 1930's. A recession of this magnitude has, consistent with prudent fiscal policy tempora.ry debt limitation until March as would be expected, resulted in lower management. This bill deserves your 31, 1976. income tax receipts and higher outlays support. The SPEAKER. The question is on the for unemployment insurance and other Mr. SCHNEEBELI. Mr. Chairman, 1 moUon offered by the gentleman from transfer payments. These changes in the yield myself such time as I may require. Oregon (Mr. ULLMAN) . budget have increased the deficit and Mr. Chairman, we are again partici­ The motion was agreed to. necessitated a significantly higher debt pating in ow· semi-annual exercise in IN THE COMMITTEE OF THE WHOLE limit. That is the basic st-ory behind the frustration and futility, and hopefully Accordingly the House resolved itself size of the debt limit increase now re­ this exercise will become a little out­ into the Committee of the Whole House quired. moded and made unnecessary with the on the State of the Union for the con­ The economic recovery, although now full implementation of the activities of sideration of the bill Washington. from the present $577 billion to a figure able the Federal Government to conduct Mr. WYLIE. Mr. Chairman, will the of $597 billion through March 31, 1976. its business and meet its financial obli­ gentleman yield? As the Members may have heard dur­ gations in a satisfactory way. An esti­ Mr. SCHNEEBELI. I yield to the gen­ ing the discussion of the rule, our debt mated deficit in fiscal year 1976 of $72.6 tleman from Ohio. ceiling on June 30, 1971, was $395 bil­ billion, which is the total currently un­ Mr. WYLIE. Mr. Chairman, I thank lion. What we are asking for, for March der consideration by the House Budget the gentleman for yielding. 31, 1976, less than a 5-year period, is Committee, is consistent with the overall Mr. Chairman, I am going to vote an increase from $395 billion to $597 bil­ debt ceiling which the committee is rec­ against H.R. 10049. As I read the lion. That is an increase of $203 billion ommending, that is, assuming a deficit in committee report accompanying this bill in less than 5 years. That is an increase this range, a $597 billion ceiling should last night, I found its economic implica­ from $395 to $597 blllion. That is a 50- be adequate through March 1976. tions alarming. It revealed that in 1947 percent increase in our debt ceiling in Therefore, I support the committee's the total statutory debt limit was $275 less than 5 years. request, although with some misgivings. billion. It took 23 years, until 1970, for Specifically, what does this mean? In this regard, I would like to make a the public debt to increase $100 billion to This means that the interest on our debt few observations on the runaway Fed­ a $375 billion total. It took only 4 years is $36 billion a year in the present fiscal eral spending in the last 10 to 15 years to add the next $100 billion, bringing the year, but that figure has no significance which necessitates these .constant in­ total up to $475 billion in 1974. It took to Members of Congress, it does not mean creases in the overall debt limitation only 1 year to add the next $100 billion anything, it is too large. But dividing it and entails deficits of the nature of and now we are preparing to vote yet down to a common denominator that we $70 billion in a single fiscal year. The another major increase. This accelerating all understand, that figures out to $100 overall debt limit has risen from $395 timeframe, per $100 billion increase is million a day for the interest on our debt. billion through June 30, 1971, to $597 bil­ frightening-23 years, then 4 years, then One hundred million dollars a day is lion proposed through next March, an 1 year, then who knows? I do know that the interest on our debt. And, more spe­ increase of approximately 50 percent, we cannot keep this debt progression ex­ cifically, it figures out to more than or $200 billion, in less than a 5-year panding at this rate without destroying $1,000 a second. In the few minutes that period. The gross interest on our debt the fiscal integrity of the U.S. Govern­ I take standing up here discussing this has now reached a level which costs us ment and causing economic chaos. A day matter with the Members, probably approximately $100 million a day, or $36 of reckoning is fast approaching. I re­ $200,000 or $300,000 has been the in­ billion a year. Even after deducting those alize the problem; Government spending terest on our debt, in the short time of payments of interest to various Federal has already exceeded income and that we this discussion. Government trust funds and amounts must borrow to pay our bills. But I think if the Members remember deposited in the Treasury by the Federal The issue will ultimately come down to the figure of $100 million a day is just Reserve System, the net interest cost whether we can live within our means the interest on our debt ceiling, it might annually is now about $20 billion, or more under the framework of our present con­ tend to shake the Members. than $50 million a day. stitutional, democratic institutions. Re­ Despite the reservations that I have in­ This wild spending cannot be con­ cent fiscal history is not too encouraging. dicated here, nevertheless it is necessary tinued, nor can the defiicts which in­ This Government has produced only one to give the Secretary of the Treasw-y the evitably accompany it. Those who have budget surplus in the last 16 fiscal years. authority to sign pay checks, otherwise voted huge authorization and appropria­ During that period Government spending we will have fiscal chaos, otherwise we tions bills .can scarcely be said to have increased by more than 300 percent while will be in default. ~hat is a word we supported taxes to accompany them, in Federal receipts have increased by only heard a lot the last 2 weeks, the matter order to keep the Federal budget in any 225 percent. This has resulted in a cumu­ of default. While people look to the Fed­ sort of balance. This is probably not the lative Federal deficit of about $287 billion eral Government to bail them out, I time to debate the merits of the Presi­ during this 16-year period. We cannot would remind the Members of this: Who dent's recent proposals to reduce both continue on this course. History is littered is going to bail out the Federal Govern­ spending and taxes by $28 billion. How­ with the bones of governments that could ment if we continue this policy? ever, I must observe that unless this not or would not face economic reality. Mr. Chairman, with grave reservations sort of courageous step, involving diffi­ Look at New York City. Is what we are I support the approval of H.R. 10049, and cult choices among programs, is taken, proposing to do today really any different I hope when the Budget Committee gets our country will .continue down the road than what has brought the city and State into full functioning we will have better to the final fiscal disaster already facing of New York to the brink of bankruptcy? control of our spending. other governments here and abroad. In the bluntest of terms, are not we Mr. thairman, I rise in support of H.R. Therefore, I hope that the Congress today going to vote to borrow from Peter 10049, a bill to increase the temporary will give the President's and other pro­ to pay Paul and then next year vote to debt limitation until March 31, 1976, to posals, which attempt to get a grip on borrow from Patrick to pay Peter and in $197 billion. With a permanent debt limi­ our burgeoning Federal spending and the process plunge even deeper and tation of $400 billion, this bill would in­ to reduce the heavy burden of taxation deeper into debt? How long will it take crease the overall public debt ceiling to on the American people, serious consid­ until the taxpayers of this land realize $597 billion, $20 billion over the present eration in the near future. Frankly, that this is an economic house of cards limit of $577 billion, which expires on these constant requests to increase our and begin refusing to loan funds to the November 15. overall public debt limitation to finance Treasury at any interest rate? The only The committee concluded that at this huge deficits tax the patience of the difference between this scenario and time an extension to only March 31, many Members of Congress who are New York is that there will be no one 1976, was appropriate, since there are themselves fiscally conservative and re­ for the Federal Government to turn to still a great many uncertainties regard­ strained in the support of Federal spend­ for a bailout. ing the extent and duration of the pres­ ing. In the past, many of those mem­ These debt increase bills are continu­ ent economic recovery, expenditure lev­ bers have nonetheless voted for debt ally couched in terms of a "temporary els through the rest of fiscal year 1976, debt limit increase." Such temporary and the size of any tax reductions which ceiling increases because they feel that debt, since our Government has em­ might or might not be enacted during the commitments by the Government, hav­ barked on the policy of deficit financing, remainder of the fiscal year. By March ing been made, must be met. There seems has come to have a depressing perma­ 31, there should be a great deal more to be a new awareness in the United nence. It is only fair to ask and I know certainty and clarity regarding these States, even among elected officials, at that a growing number of the American questions and the Congress should be in least at the State and local government people are beginning to ask me when is a much better position to legislate with level, that the role of government, and this going to end? When is the budget regard to an appropriate debt ceiling the attempts of government to solve all going to balanced? When is the national through June 30, 1976, the end of the of our problems with large expenditures debt going to be retired? These are fair fiscal year. of public moneys, must be more limited. questions. Even a modicum of political October 29, 1975 CONGRESSIONAL RECORD-HOUSE 3.4271 savvy points up that any government's pay the interest on this staggering debt. ing is, first, at the authorization level, hardest job is to reconcile political ex­ In fact, the cost of this debt was graphi­ and, second, at the appropriation level. pectations with economic reality. If our cally referred to a few moments ago by We too often forget-or some try to for­ free institutions and market economy my colleague from Pennsylvania

Clay Landrum Rangel Murtha Rose Sullivan H. Res. 799 Collins. TIL Leggett Reuss Myers, Ind. Rosenthal Symms Resolved, That upon the adoption of this Conable Long, La. Rodino Natcher Rousselot Talcott Conte Long, Md. Rooney Neal Runnels Taylor, Mo. resolution it shall be in order to move that Corman McClory Rostenkowski Nichols Russo Taylor, N.C. the House resolve itself into the Committee cornell McCloskey Roush Nix Santini Thone of the Whole House on the State of the Cotter McCormack Roybal Nolan Satterfield Treen Union for the consideration of the joint reso­ Daniels,_ -.J. McDade Ruppe Nowak Scheuer Tsongas lution (H.J. Res. 92) relating to the publica­ Patterson, Schroeder Delaney McEwen Ryan Walsh tion of economic and social statistics for Derwinski McFall StGermain Calif. Schulze Wampler Downing, Va. McHugh Sarbanes Pattison, N.Y. Sebelius Weaver Americans of Spanish origin or descent. After Duncan, Oreg. McKay Schneebeli Poage Shriver White general debate, which shall be confined to duPont Macdonald Seiberling Pressler Shuster Whitten the joint resolution and shall continue not Eckhardt Madden Sharp Quie Sikes Wilson, c. H. to exceed one hour, to be equally divided and Edgar Madigan Shipley Quillen Skubitz Wilson, Tex. controlled by the chairman and ranking Edwards, Ala. Mahon Simon Randall Smith, Nebr. Winn Edwards, Calif. Matsunaga Slack Regula Snyder Wirth minority member of the Committee on Post Eilberg Meeds Smith, Iowa Richmond Spellman Wolff Office and Civil Service, the joint resolution Erlenborn Melcher Staggers Rinaldo Spence Wylie shall be read for amendment under the five­ Evans, Colo. Metcalfe Stanton, Roberts Steelman Yatron minute rule. At the conclusion of the consld­ Fenwick deyner J. William Robinson Steiger, Ariz. Young, Alaska eration of the joint resolution for amend­ Findley Mezvinsky Stanton: Roe Stephens Young, Fla. ment, the Committee shall rise and report Fisher Michel James V. Rogers Stuckey Zeferetti Flood Mikva Stark Roncalw Studds the joint resolution to the House with such Foley Mills Steed amendments as may have been adopted, and Ford, Mich. Mineta Steiger, Wis. NOT VOTING-38 the previous question shall be considered as Forsythe Minish Stokes Abzug Heinz Moakley ordered on the joint resolution and amend­ Frenzel Mollohan Stratton Annunzio Hinshaw Murphy, N.Y. ments thereto to final passage without in­ Giaimo Moorhead, Pa. Teague Breaux Horton Nedzi tervening motion except one motion to re­ Gonzalez Morgan Thompson Brown, Ohio Jenrette O'Hara Gude Mosher Thornton Burke, Fla. Ketchum Rees commit. Hall Moss Traxler Clausen, Lehman Rhodes Hamilton Murphy, Ill. Udall Don H. Lent Riegle The SPEAKER. The gentleman from Hammer- Myers, Pa. Ullman Cleveland Lujan Risenhoover Indiana (Mr. MADDEN) is recognized for schmidt Oberstar Van Deerlin Esch McKinney Sarasin 1 hour. Hanley Obey VanderJagt Fary Martin Sisk Hannaford O'Brien VanderVeen Fraser Milford Solarz Mr. MADDEN. Mr. Speaker, I yield 30 Hawkins O'Neill Vanik Green Mink Symington minutes to the gentleman from Missis­ Hayes, Ind. Ottinger Vigorito Hebert Mitchell, Md. Wiggins sippi (Mr. LOTT) pending which I yield Hicks Passman "\Vaggonner Howard Patman, Tex. Waxman The Clerk announced the following myself such time as I may consume. Hungate Patten, N.J. Whalen pairs: Mr. Speaker, House Resolution 799 pro­ Jarman Pepper Whitehurst vides for an open rule with 1 hour of gen­ Jeffords Perkins Wilson, Bob On this vote: Johnson, Calif Pettis Wright • Ir. Annunzio for, with Mr. Burke of Flor­ eral debate on House Joint Resolution 92, Johnson, Pa. Pe -ser Wydler ida against. relating to the publication of economic Jones, Ala. Pickle Yates 1\lr. Hebert for, with Mr. Don H. Clausen and social statistics for Americans of Jordan P1ke Young, Ga. against. Karth Preyer Young, Tex. Spanish origin or descent. Kazen Price Zablocki Mr. Breaux for, with Mr. Cleveland against. The purpose of House Joint Resolution Koch Pritchard :Mr. Mitchell of Maryland for, with Mr. 92 is to develop methods to improve and Krueger R~ilsback Hinshaw against. Mr. Murphy of New York for, with Mr. expand the social and economic statis­ NAYS-217 Ketchum against. tics concerning Americans of Spanish Abdnor Daniel, R. W. Heckler, Mass. Mr. Green for, with :M.r. Lujan against. origin or descent which are collected by Alexander Danielson Hefner Mr. Sisk for, with Mr. Martin against. various Federal agencies in an effort to Ambro Davis Helstoski .Mr. Riegle for, With Mr. McKinney against. correct the inadequacy of current sta­ Anderson, de la Garza Henderson Mr. O'Hara for, with Mr. Sarasin against. Calif. Dellums Hightower tistics on Americans o~ Spanish origin. Andrews, N C. Dent Hillis !-.:Ir. Rhodes for, with Mr. Risenhoover House Joint Resolution 92 directs the Andrews, Derrick Holland again ·t. Secretary of Commerce to implement N.Dak. Devine Holt Mr. Wiggins for, with Mr. Symington Archer Dickihson Holtzman against. within the Bureau of Census an atfu·ma­ Armstrong Diggs Howe lr. Nedzi for, with Mr. Jenrette against. tive action program for the employment Ashbrook Dingell Hubbard ~ Ir. Fary for, with Ms. Abzug against. of personnel of Spanish origin or descent A spin Dodd Hughes and to report to the Congress within 1 Ba!alis Dov."lley, N.Y. Hutchinson Until further notice: Baldus Drinan Hyde year after enactment on the progress of Baucus Duncan. Tenn. !chord Mr. Fraser with Mr. Brown of Ohio. such a program. Bauman Early Jacobs Mrs. Mink with Mr. Heinz. House Joint Resolution 92 also directs Beard, Tenn. Emery Johnson, Colo. Mr. Lehman with Mr. Solarz. Bedell English Jones, N.C. Mr. Milford with Mr. Lent. the Secretary of Commerce to develop Bell Eshleman Jones, Okla. Mr. Rees with Mr. Horton. a Government-wide program for collec­ Bennett Evans, Ind. Jones, Tenn. Mr. 1\Ioakley with Mr. Esch. tion of data on Americans of Spanish Bevill Evins. Tenn. Kasten Biaggi Fascell Kastenmeier origin and to provide for bilingual ques­ Blanchard Fish Kelly Mr. YOUNG of Texas changed his vote tionnaires and enumerators in the col­ Blouin Fithian Kemp from nay to yea. lection of data. Bonker Florio Keys Mr. CONYERS changed his vote from Mr. Speaker, I urge the adoption of Bowen Flowers Kindness yea to nay. Brinkley Flynt Krebs House Resolution 799 in order that we Brown, Mich. Ford. Tenn. LaFalce So the bill was not passed. may discuss and debate House Joint Res­ Broyhill Fountain Lagomarsino The result of the vote was announced olution 92. Buchanan Frer Latta as above recorded. Burgener Fuqua Levitas Mr. Speaker, I reserve the balance of Burke, Mass. Gaydos Litton A motion to reconsider was laid on the my time. Burlison, Mo. Gibbons Lloyd, Calif. table. Mr. LOTT. Mr. Speaker, I yield myself Burton, John Gilman Lloyd, Tenn. Butler Ginn Lott such time as I may consume. Byron Goldwater McCollister PROVIDING FOR CONSIDERATION Mr. Speaker, the gentleman from In­ Carney Goodling McDonald diana has outlined the terms of this rule Carr Gradison Maguire OF HOUSE JOINT RESOLUTION 92 Chappell Grassley Mann ECONOMIC AND SOCIAL STATIS~ which provides for the House to resolve Clancy Guyer Mathis TICS RELATING TO AMERICANS itself into the Committee of the Whole Clawson, Del Hagedorn Mazzoli for consideration of House Joint Resolu­ Cochran Haley Miller, Calif. OF SPANISH ORIGIN OR DESCENT Cohen Hansen Miller, Ohio tion 92, relating to the publication of Collins, Te:t. Harkin Mitchell, N.Y. Mr. MADDEN. Mr. Speaker, by direc- economic and social statistics for Amer­ Conlan Harrington Motrett tion of the Committee on Rules I call up icans of Spanish origin or descent. The Conyers Harris Montgomery House Resolution 799 and ask for its Coughlin Harsha Moore rule allows for 1 hour of general debate Crane Hastings Moorhead, immediate consideration. and for the joint resolution to be read D'Amours Hays, Ohio Calif. The Clerk read the resolution as fol­ for amendment under the 5-Ininute rule. Daniel, Dan Hechler, W.Va. l\1:ottl lows: The purpose of this legislation is to de- 34274 CONGRESSIONAL RECORD-HOUSE October 29, 1975 velop methods to improve and expand the This is an open rule providing 1 hour The motion was agreed to. social and economic statistics concerning of general debate. IN THE COMMITTEE OF THE WHOLE Americans of Spanish origin or descent The bill would establish a three-mem­ which are collected by the Bureau of the ber panel authorized to arbitrate disputes Accordingly the House resolved itself Census, the Bureau of Labor Statistics, between the Postal Service and the or­ into the Committee of the Whole House the Department of Agriculture, and the ganization representing supervisory em­ on the State of the Union for the con­ Office of Management and Budget. The sideration of the joint resolution CH.J. ployees. It wa-s originally intended that Res. 92) with Mr. RANDALL in the chair. intent of this expanded collection pro­ supervisory personnel would have a voice cedure is to correct the alleged inade­ The Clerk read the title of the joint in decisions affecting them. It was, how­ resolution. quacy of current statistics on Americans ever, necessary for the union, the Na­ of Spanish origin and the attendant By unanimous consent, the first read­ tional Association of Postal Supervisors, ing of the joint resolution was dispensed problems that this causes in terms of un­ to go to court to win these rights. The with. employment, allocation of Government legislation before us would simply set up funds, and political representation. The CHAIRMAN. Under the rule, the a simplified machinery to implement the gentlewoman from Colorado (Mrs. The exact cost figure for this legisla­ court order. SCHROEDER) will be recognized for 30 min­ tion was never determined by the Post Mr. LOTT. Mr. Speaker, I yield myself utes, and the gentleman from California Office and Civil Service Committee, al­ such time as I may consume. Ublication of economic and social statis­ could exist for other ethnic groups par­ people. In other words, there has been tics for Americans of Spanish origin or ticularly with respect to the 1980 census. an undercount in New York City, and descent, as well as develop safeguards to The old cliche "An ounce of prevention because all of the revenue sharing figures prevent undercountings of these Ameri­ is worth a pound of cure" is applicable and everything else are based on the cans in the 1980 census. I warmly en­ here. I would hope that the House passes population data, I think it is very im­ dorse the concept of trying to remedy this bill today and that the Post Office portant if there is evidence of other these problems for they are indeed and Civil Service Committee will expedi­ groups being undercounted. serious. tiously report out new legislation provid­ I really wish the gentleman would We are attempting to legislate to help ing the mechanism for extending the cov­ bring it up before the committee, and those who, because of their language erage of House Joint Resolution 92 to all we would be very happy to consider it. background or origin are purposely or Americans of foreign stock. Mr. BIAGGI. Mr. Chairman, I would unwittingly discriminated against, but Mrs. SCHROEDER. Mr. Chairman, like to thank the gentlelady from we only deal with one of many groups. will the gentleman yield? Colorado for her kind offer. In New York City, for example, there Mr. BIAGGI. Yes, I yield to the gentle­ I have no quarrel with the legisla­ are large concentrations of people from woman from Colorado. tion. I have no quarrel with the Voting Haiti, Trinidad, Tobago, Martinique and Mrs. SCHROEDER. Mr. Chairman, I Rights Act. My only quarrel was as to other Caribbean islands that speak think that if the gentleman in the well the narrow approach. It is a problem French or are of French origin. They are wanted to bring to the Committee evi­ which affects many other people of these not covered by this bill. There are large dence of the fact that some of those United States. concentrations of poor Brazilians in the groups were being undercounted, which Mr. ROUSSELOT. Mr. Chairman, I United States that are of Portuguese is what we are very concerned about, the yield 3 minutes to the gentlewoman from background. They are not covered. fact that they have not been count-ed, New Jersey Mrs. FENWICK. So there will not be eral Government to fully and accurately dismiss these findings as unfounded. any question of whether or not the person represent this second largest minority However, their own 1973 population sur­ who is counted is here Ulegally? group. vey for "persons of Spanish origin in the Mrs. SCHROEDER. No, there wm not CENSUS UNDERCOUNT United States," showed a substantial in­ be any question concerning their status. One of the most glaring defects-and crease of more than 1.5 million over 1970 Mrs. FENWICK. So we will not have one which is addressed by sections 4 and figures. This revision showed a 17-per­ any count of those who are illegal aliens? 5 of the resolution-is the undercount of cent rise in the Spanish-origin popula­ Mrs. SCHROEDER. No, we will not. Spanish-origin persons by the Census tion and a nearly 40-percent increase Mrs. FENWICK. We have had great Bureau. The 1970 census was, in fact, a among Mexican Americans--again prima difficulty with this. Many of our labor most inaccurate account of this group. facie evidence that the original count organizations have been very anxious The Bw·eau did not actually count the was not accurate, that it was not con­ t<> have some kind of an estimate that Spanish-origin population, but relied on ducted properly. The 1974 report by the would be more accurate. a 5-percent sample question. This small U.S. Commission on Civil Rights found Mrs. SCHROEDER. That is true, but sampling was an expedient, an after­ that "this figure reflects some correc­ I am sure that since the Census Bureau thought, adopted by the Bureau to quell tion for an undercount in the 1970 cen­ is not engaged in law enforcement, which criticism against its original failure to sus." Even the Bureau admitted that is what we would be asking them to do, provide a Spanish-origin question for the the significant increase was due to im­ that we would have a great deal of diffi­ census. However, very little was done to proved survey methods-namely, the ex­ culty ever getting an accw·ate count if insure that this sample adequately esti­ pansion of the category "Spanish origin that happened. And this is true because mated the Spanish-origin population. for children under 14" to include the of what the gentleman from Ohio said, First of all, the Census Bureau failed Spanish origin not only of the father, people would be fearful of talking to to develop appropriate data collection but also of the wife of the household; whoever came to their door. techniques. It relied too heavily on the expansion of Mexican ethnic origin from So although I know that this is of mail-out, mail-back method, despite the two to four categories; and changes in great concern, it is properly within the fact that mail delivery would be poor or survey procedures with emphasis on in­ framework of the Census Bureau. even nonexistent in substandard hous­ terviewing. Mrs. FENWICK. The Census Bw·eau ing areas. The Bureau has the constitutional does not take into account one status Nor did the Bureau properly account mandate to compile and publish data as against another? for the high mobility among migrant on the U.S. population. There is little Mrs. SCHROEDER. They do not make farmworkers with its significant Mexi­ doubt that governmental agencies at all a determination of who is here legally or can-American population. levels rely heavily, and in many cases illegally. Further, it failed to provide a Spanish­ exclusively, on data developed by the Mr. ROUSSELOT. Mr. Chairman, will language questionnaire on a routine Bureau. This dependency has its own the gentlewoman yield? basis, despite the fact that many Latinos domino effect: If Bureau figm·es are sus­ Mrs. FENWICK. I yield to the gentle­ needed help to fill out the lengthy Eng­ pect, then those of other agencies are man from California. lish -only forms. also suspect. Mr. ROUSSELOT. Mr. Chairman, I There are currently some 100 Federal think that the point my colleague, the The Bureau attempted to discount the Spanish-origin question a-s a regional programs which allocate funds on the gentlewoman from New Jersey is trying basis of population; many require cen­ to make is that many cities and county problem, completely ignoring their na­ tionwide distribution. The truth is that sus data for minority groups and popu­ governments rely on the census figures lations within specific geographic areas. and updating of those figures as to what well over 40 percent of this group resides They cover a wide range of areas, from their allocation will be in various cate­ outside the southwestern region. Federal highways and mass transit gories of Federal grants. In the collection Repeatedly, the Bureau has failed to funds, to general revenue sharing, edu­ of those statistics if, in fact, illegal aliens prove that it was sensitive to the need cation, manpower, housing, health and are included in these counts that it might for bilingual enumerators during the social services, elderly programs, and distort what those governmental units 1970 census. Community representatives law enforcement assistance. are relying on for grants that come from and observers continually complained Mr. KAZEN. Mr. Chairman, will the the Federal Government. about the absence of bilingual census gentleman yield So I think my colleague the gentle­ takers. Originally, the Bureau claimed Mr. ROYBAL. I yield to the gentleman woman from New Jersey t legal Mr. ROUSSELOT. Mr. Chairman, I Spanish origin or descent. aliens. They are American citizens. yield 3 minutes to the gentleman from I want to emphasize the point that was The City University, the university of Dlinois (Mr. DERWINSKI) , the champion made by the gentleman who preceded me, the city of New York, conducted a sur­ of all ethnic groups. particularly in answer to the gentleman vey called the 1970 population health Mr. DERWINSKI. Mr. Chairman, I from Ohio. This resolution has to do with survey, and it found that there were wish to read to the Members of the American citizens. The word "American" 1,016,500 Puerto Ricans. which is a dif- , House a letter that was given to me in the resolution means American citi­ terence of 25 percent; so those are very yesterday by the distinguished minority zens. This has to do with counting only substantial d11ferences in figures dealing . leader. The letter reads as follows: American citizens. It does not help illegal with American citizens. ' October 29, 1975 CONGRESSIONAL RECORD-HOUSE 34279 These are all called statistics, but I might be somewhat self-serving, but by across the border from Hungary, they want to dramatize this in a more per­ objective groups which show that there would speak Hungarian much more than sonal way. I send a newsletter to my is a need, I would support it. they would speak English, if their bor­ district, as many of us do in the Con­ Mrs. SCHROEDER. Mr. Chairman, I ders were adjoining. Cleveland is a long, gress. My district has a substantial per­ yield 4 minutes to the gentleman from long way from Hungary; but not Texas, centage of Puerto Ricans, around 40 per­ Texas (Mr. DE LA GARZA) . which is just a walk across the river ceo t. In the Puerto Rican areas of my Mr. DE LA GARZA. Mr. Chairman, I from Mexico. Besides, Spanish was district, as opposed to the other areas, rise in support of this legislation and add spoken in this hemisphere before the the mail is returned. The newsletter my endorsement and associate myself first word of English was spoken, so we which is addressed say to the occupant with the statement made by my colleague might say that it is one of our native of a building, "Occupant 916 Fox Street" from California nittee. We are glad to see that lation, and I join my colleague, the gen­ On page 2, line 9, insert a comma immedi­ tleman from Illinois (Mr. DERWINSKI) ately after "Labor". now is being done by amendment to elim­ in supporting it. On page 2, beginning in line 9, strike out inate the bilingual questionnaires. Mrs. SCHROEDER. Mr. Chairman, I "undertake further efforts to" and insert in Secondly, this item was mentioned in have no further requests for time. lieu thereof "shall each". the minority views, and we appreciate On page 2, line 10, insert a comma immedi­ the willingness of the majority to accept The CHAIRMAN. There being no fur­ ately after "collect" and immediately after ther requests for time, the Clerk will our suggestion. "regularly". Mr. DERWINSKI. 1-~r. Chairman, will read. On page 2, line 11, strike out "provide in­ The Clerk read as follows: dicators of" and insert in lieu thereof "in­ the gentleman yield? dicate". Mr. ROUSSELOT. I yield to my col­ Resolved. by the Senate and House of league, the gentleman from Tilinois. Representatives of the United States of Amer­ On page 2, beginning in line 14, strike out ica in Congress assembled, That the Depart­ "the Director of the Bureau of the Census" Mr. DERWINSKI. Mr. Chairman, the ment of Labor, in cooperation with the Bu­ and insert in lieu thereof "the Secretary of Bureau of the Census has advised that reau of the Census, immediat ely undertake Con1merce··. · they have no objection to the amend- October 29, 1975 CONGRESSIONAL RECORD- HOUSE 34281 ments offered by Mrs. ScHROEDER, which for improving the current system for Does the gentleman know what they incidentally solve the issues which were collecting unemployment data for Span­ will be? raised in our supplemental views. While ish citizens, rather than the costly one Mr. STARK. It is very difficult, as I the Bureau claims that some of the pro­ of expanding the current one that is am sure the gentleman k..uows, to assess visions of House Joint Resolution 92 are in effect. the costs even of the overall bill, but already being implemented or will be Mr. ROUSSELOT. Mr. Chairman, I I hope they will be minimal. in the near future, the resolution serves rise in support of the amendments. Mr. ROUSSELOT. The overall cost the purpose of highlighting the need for Mr. Chairman, again this is an amend­ of this bill before us has been assessed, attention to this problem. ment that will save a substantial amount but not the amendment of the gentle­ The gentlewoman's perfecting amend­ of money in the collection of data. The man from California. ments appeal to me on at least two minority supports the position, as we did Mr. STARK. I suggest to the gentle­ counts. to try to correct the language by amend­ man that there is no definitive way of My State has approximately 600,000 ment in committee. doing it. Including :;Jeople of Spanish Americans of Spanish descent or origin, The CHAffiMAN. The question is on origin in that data base would not require and the vast majority of them reside in the amendments offered by the gentle­ great additional cost. the metropolitan area of Cook County. woman from Colorado (Mrs. ScHROEDER) . I also would suggest to the gentleman As the representative of a metropolitan The amendments were agreed to. that health problems tend to be in­ congressional district, I recognize the AMENDMENT OFFERED BY MR. STARK cluded in environmental problems, and need for obtaining accurate information Mr. STARK. Mr. Chairman, I offer an problems of housing, !lutrition, and edu­ on the second largest minority in the amendment. -cation which create new downstream Nation. medical problems. I suggest that in this My long involvement with ethnic The Clerk read as follows: Amendment offered by Mr. STARK: Page 2, case an ounce of prevention might, cost­ groups has convinced me that a great line 11, insert "the Department of Health, wise, be worth a pound of cure. many of their problems result from mis­ Education, and Welfare," immediately after Vvhile we cannot assess accurately the understanding. Experience has taught "Labor,". costs, one has every reason to suspect me that the most effective way to deal Page 2, line 13, insert "health" immediate­ that they will be minimal, and they will with an ethnic problem is to talk to the ly after "social,". still be indirectly under the cont:-ol of the people involved, but that is a process that Mr. STARK. Mr. Chairman, the committee that sponsored this legisla­ involves two-way communication. If you amendment merely clarifies the data­ tion. cannot communicate, you cannot identify gathering role of the Department of Mr. ROUSSELOT. If the gentleman the problem. Health, Education, a.nd Welfare under will yield further, I do not think that this That is why I am particularly happy to legislation contemplates that the sur­ see language in the pending legislation House Joint Resolution 92. It stresses the importance of collecting and publishing veys now done by the Bureau of the which calls for the use of Spanish lan­ Census should include nutritional analy­ guage questionnaires and bilingual enu­ health data on the more than 12 million Americans of Spanish origin or descent. sis. If that is the intent of the gentle­ merators. That will go a long way in con­ man's amendment, I will have to oppose tributing to the collection of meaningful Although HEW falls under section 3 as one of the Federal data-gathering it because that would be a substantial data on a historic minority which plays add-on cost. a significant rol.:; in our national life. agencies, it shares with the Departments of Commerce and Labor the character­ Mr. STARK. It is health analysis. That The CHAmMAN. The question is on is the main thrust. the amendments offered by the gentle­ istic of collecting and publishing regular­ ly data on conditions affecting our popu­ Many times lack of proper nutrition woman from Colorado ld to the gen­ Mr. STARK. If I may explain the Mr. ROGERS. Mr. Chairman, I rise tleman from California. amendment a little bit fm·ther, the gen­ in support of the amendment offered by Mr. STARK. I thank the gentlewoman tleman is familar, I am sure, with sickle the gentleman from California. for yielding. cell anemia which is endemic within Mr. Chairman, this is a very simple, That is precisely correct. members of the black race. If we were straightforward amendment which Mrs. SCHROEDER. That is all; it not able to develop statistics on this dis­ would direct the Department of Health, would not ask them t-o do anything that ease we would not be able to deal with it. Education, and Welfare to collect and they are not going to do except that one It could be very well that the statistics publish statistics indicating the health additional act? we are already collecting in surveys we conditions of Americans of Spanish Mr. STARK. If the gentlewoman will &re already making could be very help­ origin or descent. It is an amendment yield further, that is exactly the inten­ ful and protective to health of future which is necessary if several provisions tion. generations of Spanish-origin people. of current law are to be adequately im­ Mrs. SCHROEDER. It is also my un­ The CHAIRMAN. The time of the plemented. Recently enacted amend­ derstanding that they already are doing gentleman has again expired. ments to the Migrant Health Act and that for blacks. (By unanimous consent, Mr. STARK was the Community Mental Health Centers Mr. STARK. That is correct. allowed to proceed for 2 additional Act, and the new Community Health Mrs. S.CHROEDER. And the gentleman minutes.> Centers Act require such service pro­ from Florida n.greement or to adopt a procedure providing legislative days in which to revise and for a binding resolution of a dispute by the extend their remarks, and include extra­ Mr. EVANS of Indiana. Mr. Speaker, I date of the expiration o! the agreement or neous material, on the bill ation in New York State. Today the They also seem to think if we take the Mr. SKUBITZ. Mr. Speaker, on Fri­ whole situation has taken a new turn, position that it is a Federal responsibility day, October 17, at the White House, and the new turn has been brought about to use Federal funds to assist New York Thoma~ S. Kleppe was sworn in as Sec­ by the President's talk today on the New in its problems, then New York will say: retary of the Interior. Now, after many York situation. I am truly troubled that ''Look. They will take care of us. We will months without a permanent Secretary, the President took the action that he not have to mend our ways. We will or Under Secretary, we are getting our did take today, specifically, saying that stumble on." feet on the ground with a proven ad­ any legislation that this Congress en­ The President's statement, to which ministrator. acted that involved aid for the city of the gentleman makes reference, says we I regret that I was in Kansas, on that New York would be vetoed by him. ought to change the bankruptcy laws Friday and therefore unable to attend I think it is most unfortunate that the perhaps to permit New York to use funds the swearing-in ceremony. Bu"" as rank­ President did not adopt the responsible of such as the police department and fire ing minority member of the Interior position and state that any legislation department and sanitation department Committee, I take this time to extend enacted by this Congress would be at retirement funds and then let the courts my congratulations and very best wishes least reviewed by the President before determine the priorities of those to whom to ~ - former colleague. such an action of veto would take place. the city of New York has primary obli­ Those who know Tom Kleppe must I also feel very strongly that the Pres­ gations. anticipate, as I do, that our new Secre­ ident's solution-and this is based obvi­ I wanted to add some balance because tary will enthusiastically become in­ ously on the advice of his counselors-­ I know many special orders were taken volved in his work. We know this is his to the New York City problem is any last night mostly on one side. I would style, as he proved so convincingly at solution to the problem at all. In fact say mast of the people in the country do the Small Business Administration. I think that the reality of it is that we not share the statement of the gentle­ Throughout his tenure at SBA, this Ad­ gain nothing by a bankruptcy proceed­ man in the well. ministrator went "people-to-people" for ing and we certainly do not help the Mr. PEYSER. I do want to comment advice from the small business commu­ people of the city or State of New York. on that. nity. In his words, he has a ''love for Mr. BIAGGI. Mr. Speaker, will the From the beginning it has been most small business." gentleman yield? unfortunate that we have gotten into the By so earnestly facing his duties, and Mr. PEYSER. I yield to the gentleman use of the term "bail out" because the the skill with n.hich he has carried out from New York Central America and Various remedies are being considered, In a memorandum written in early made it the greatest single beneficiary particularly loan guarantees. My own August of 1903, prior to the 1903 Canal of the Canal enterprise. view is that the vehicle used to stave Treaty, on the historical background of Sixth. The Canal Zone and canal have off default is secondary to the need to our canal policy, Dr. Moore stated: been protected successfully during two embrace an approach now to deal with The United States in constructing the World Wars, the Korean and Vietnam the immediate problems in New York, to canal would own it, and, after constructing wars, and an attempted Red-led Pana­ 1·eevaluate the financial posture of gov­ it, would have the right to operate it. The manian mob invasion, fully demonstrat­ ernment at all levels, and to abort the ownership and control would be in their ing the capacity of the United States to nature perpetual. (Roosevelt Papers, Letter spread of disaster to other areas totally Books XI, 39()-91.) (Italic supplied.) meet its treaty obligations for protect­ unresponsible for events in New York ing the canal. City. Since the assumption in 1904 by the Seventh. The validity of the U.S. title Federal action is unavoidable; our United States of full sovereign responsi­ to the Canal Zone has been confirmed choice is between solving problems now, bility for the construction, maintenance, by the U.S. Supreme Court Guam, and the Virgin Islands. This lack the Canal Zone, in addition to the above present session of the Congress there creates a situation for U.S. Canal Zone listed facts, I shall cite three authori­ have been three significant debates in residents of taxation without representa­ tative pronouncements: the House of Representatives on the Pan­ tion and has deprived the Congress of First. When the negotiations for the ama Canal: June 26, September 24, and the long-needed services that such con­ 1903 Treaty were underway, the move­ October 7, 1975. In spite of extensive rev­ tinuously available delegate could render ment for a U.S. Canal at Nicaragua was elations in them much confusion still in arriving at wise decisions. strong. Its advocates were poised ready exists about one of the most gravely im­ Though the problems of the Panama to take advantage of any opportunity to portant policy challenges now facing the Canal may appear highly complicated defeat the treaty for the Panama Canal. Congress and the Nation. To its further yet when reduced to their essentials they To avoid any possible debate in the Sen­ clarification and what should be done, are relatively brief and simple. The ate over what attributes of sovereignt y I now address myself. crucial facts are: were to be secured, !lie negotiators de­ In the early part of the 20th century First. Under the 1903 Treaty, which cided upon a '·concession of sovereignty when the U.S. Government was pressing was authorized by the Congress­ en bloc" to the entire exclusion of the for an Isthmian canal, President Theo­ Spooner Act of 1902-the United States exercise by Panama of any such sov­ dore Roosevelt did not act heedlessly as acquired full sovereign rights, power, ereign rights, power or authority. (Earl many have stated, but had as his trusted and authority over the Canal Zone in Harding, "The Untold Story of Panama," advisers some extraordinarily able and perpetuity for the construction, main­ 1959 p. 39.) well informed leaders and acted strictly tenance, operation, sanitation, and pro­ Second. On November 16, 1910, at a in compliance with congressional direc­ tection of the Panama Canal in accord­ banquet in Panama City given by the tion in the Spooner Act of 1902. Among ance with the rules governing the opera­ President of Panama, U.S. President them were Secretary of State, John Hay; tion of the Suez Canal. Taft, later Chief Justice of the United the distinguished naval strategist and Second. Pursuant to this treaty the States, made this significant statement: historian, Adm. Alfred Thayer Mahan; United States obtained title to all pri­ We are here to construct, maintain, oper­ Dr. John Bassett Uoore, the great legal vately owned land and property in it, ate and defend a world canal, which runs scholar of the State Department; and estimated in 1974 at a total cost of $166,- through the heart of your country, and you Senator John C. Spooner of Wisconsin. 362,173--our most expensive territorial have given us the necessary soverei gnty and All major moves by the President in ac- possession. j u risdict ion over the part of your count ry October 29, 1975 CONGRESSIONAL RECORD- HOUSE 34295 occupied by that canal to enable us to do render its sovereignty over the Canal sumption of work on the major moderni­ this effectively. (Emphasis supplied). (Canal Zone to Panama within 3 years, or less. zation of the existing canal suspended Record, Vol. IV, Nov. 23, 1910, p. 100). That the Canal Zone Government and in May 1942 to include an additional sec­ Tl:ese pertinent remarks were not cas­ its agencies would cease to exist and U.S. tion, providing that its terms shall re­ ual commenw but views expressed by a citizens now residing in the zone main in effect only so long as the sover­ U.S. President who had extensive back­ would be subject to Panamanian law and eign rights, power and authority of the ground knowledge of canal history and government. United States over the Canal Zone and problems at a time when the day for That the defense of the canal would canal as set forth in articles II and III opening the canal was less than four be shared with Panama, which would be of the 1903 treaty remain unaltered. years away. fraught with danger. This change is in line with our his­ Third. In accordance with provisions That the United States would con­ toric policy for the Panama Canal of of the Panama Canal Act of 1912, Presi­ tinue to have "plimary responsibility for not appropriating the funds necessary dent Taft on December 5 of that year canal operations and the transit of ves­ for its construction, maintenance, opera­ issued an Executive order declaring that sels." Ubid., Oct. 6, 1975, pp. 31874- tion, sanitation and protection in terri­ "all land and land under water within 31876). tory not under the sovereignty of the the limits of the Canal Zone are neces­ A study of the three agreements will United States. It should serve notice on sary for the construction, maintenance, disclose that they would place the United the world that the United States will operation, protection and sanitation of States in the untenable position of hav­ adhere to that historic policy and not the Panama Canal." Vietnam war effort­ Soviet policy was to eliminate the Amer­ Nation, the Federal debt rose to roughly national defense up 63 percent-and hu­ ican presence from the Canal Zone. To­ $300 billion. In the past decade, that fig­ man resources programs-income secu­ day, the Soviet Union has a Navy frankly ure nearly doubled. Today we are being rity up 47 percent and education, man­ challenging our own, so it is perfectly ob­ called upon to raise the debt ceiling by power and social services up more than vious why every front-group and puppet another $20 billion. Current estimates 200 percent. Given increases in the debt in the world wants us out of Panama. call for a debt of more than $600 billion during this period, spending also in­ Including "our" own State Department, by the end o.f the current fiscal year. creased in a third area, with interest on unfortunately. While it is true that the debt is de­ the national debt rising by more than Many years ago, the Supreme Court creasing as a percentage of our gross na­ 35 percent.. · Wilson against Shaw in, 1907, disposed of tional product, I find little consolation in Had there been a check on Federal every argument and confirmed U.S. pos- that fact. I would be. encouraged by our spending during that period-for exam- Octobe'r 29, 1975 CONGRESSIONAL RECORD-HOUSE 34299 propriate for the fiscal year under con­ in which the projected national unemploy­ ple, by requil'ing that the budget be in ment rate (determined as provided in sub­ surplus during full employment years­ sideration. section (d)) is less than 4% percent. the public debt would be nearly $50 btl­ Concerning the operational definition "(b) For purposes of any concurrent reso­ lion lower today and perhaps the infla­ of full employment, this is a concept lution on the budget under section 301 (a), tion of the early 1970's would have been about which there is little agreement. 304, or 310(a), only a surplus in the budget avoided. While full employment has convention­ (and not a deficit) shall be considered ap­ It is this last problem-inflation­ ally been defined as 4 percent unemploy­ propriate for any fiscal year in the light of ment, the Council of Economic Advisers economic conditions and all other relevant which concerns me most deeply. Over­ factors if the projected national unemploy­ spending--or undertaxation, depending recently adopted the figure of 4.9 percent. ment rate for such year (determined as pro­ upon one's perspective-in the late 1960's The figure of 5 percent is mentioned with vided in subsection (d) ) is less than 4 Y2 caused higher rates of inflation in the increasing frequency in scholarly jour· percent. The projections required by sec­ early 1970's. Subsequently the OPEC oil nals. On the other hand, many full em­ tions 301{d) (6) and 308(c) (2) shall take price increases in 1973-74 boosted in­ ployment advocates talk about 3 or 3.5 into account the provisions of the preceding flation to double-digit rates. Although percent as being a realistic level. For sentence. inflation has been dampened somewhat what it is worth, the national average " (c) It shall not be in order in either was 4.7 percent for the period from 1947 the House of Representatives or the Senate by the recent recession, it still continues to consider or adopt a concurrent resolution at a relatively high level-prices are cur­ through 1973. Thus the :figure of 4.5 per­ on the budget (as described in section 301 rently rising at about 7 percent annually. cent contained in my bill is somewhat (a), 304, or 310{a)) for any fiscal year, if Most economists agree that this rate of under the national average for this pe­ the projected national unemployment rate inflation will increase. If our Nation at­ riod. for such year (as determined under subsec­ tains full employment by the late 1970's, In conclusion, while the economic pic­ tion (d) and speclfied in such resolution at we are likely to find high inflation, par­ ture remains gloomy at present, it will the time of such consideration or adoption) ticularly if we continue deficit budgets brighten soon and full employment will is less than 4% percent, unless such resolu­ return. Rather than living on a month­ tion sets forth a surplus in the budget for and the OPEC nations continue to in­ such year {along with levels of budget au­ crease oil prices. to-month and quarter-to-quarter basis thority, budget outlays, Federal revenues, and Stimulative deficits can be produced with regard to economic policy, we should the public debt which are mathematically either by cutting taxes, raising spending prepare now for the time when full consistent with such surplus). or some combination of the two. Tax cuts employment occurs. By adopting the Full " (d) For purposes of this section, the pro­ are often politically difficult to reverse, Employment Surplus Act, Congress will jected national unemployment rate for any not only be prepared for future improve­ fiscal year shall be the average rate of unem­ and are also often carried out through ployment nationally which is most likely to the creation of loopholes which reduce ments in economic conditions; it will also exist during such year (expressed in terms the equality of the tax system. Increas­ be justifying the large deficits which of a percentage of the total employable popu­ ing expenditures is not a bad policy, un­ we must incur if rapid economic recovery lation of the United States), as determined less pursued because "the money is just is to be achieved. Finally, it will be re­ and set forth in the most recently adopted lying there anyway.'' Large increases in storing confidence in the American peo­ concurrent resolution on the budget for such year (or, for purposes of the consideration or debt and the likelihood of high rates of ple that we have a commitment to l·e­ adoption of a concurrent resolution on the inflation when full employment returns ducing the national debt during periods budget, as determined and set forth in such are potent reasons to avoid full employ­ of national prosperity. resolution at the time of such consideration ment deficits. Mr. Speaker, in closing, I include a or adoption) on the basis of the most recent To deal with the problems noted above, copy of my bill in the RECORD along with data available from the Bureau of Labor a table showing-for each year during Statistics and projections reflecting all other I am today introducing the Full Employ­ relevant data, statistics, and information." ment Surplus Budget Act, a bill which the period 1949 to 1974-unemployment, (b) The table of contents in section l(b) would amend the Congressional Budget inflation, Federal spending, Federal re­ of such Act is amended by inserting im­ Act of 1974 to require budget surpluses ceipts, and the Federal deficit: mediately after the item relating to section when national employment drops below H.R.- 311 the following new item: 4% percent. A bill to amend the Congressional Budget "SEc. 312. Requirement of budget surplus Act of 1974 to require a. budget surplus when national unemployment The bill requires that the budget whenever the national unemployment rate rate is below 4% percent." adopted by Congress be in surplus when drops below 4% percent SEc. 2. Section 301 (a) of the Congressional the unemployment rates are projected to Be it enacted by the Senate and House Budget Act of 1974 is amended- fall below 4% percent during the fiscal of Representatives of the United States of ( 1) by striking out "and" at the end of year covered by the budget. It permits America in Congress assembled, That (a.) paragraph ( 5) ; title III of the Congressional Budget Act of (2) by redesignating paragraph (6) as a point of order to be made in either paragraph (7); and House of Congress if unemployment is 1974 is amended by adding at the end thereof the following new section: (3) by inserting immediately after para­ projected to be less than 4% percent graph (5) the following new paragraph: and the budget resolution calls for a defi­ "REQUffiEMENT OF BUDGET SURPLUS WHEN NA­ "(6) the projected national unemployment cit. For purposes of flexibility, the bill TIONAL UNEMPLOYMENT RATE IS BELOW 4% rate for such fiscal year as determined under PERCENT section 312 (d); and". does not stipulate the size of the required "SEc. 312. (a) Notwithstanding any other SEc. 3. The amendments made by this Act surplus. Also it permits the Budget Com­ provision of this Act, there shall be a sur­ shall apply with respect to the fiscal year be­ mittees to adopt the projected unemploy­ plus in the congressional budget for the ginning on October 1, 1976, and succeeding ment figure which they judge to be ap- United States Government for any fiscal year fiscal years. ------Change in Change in Govern- Change in Govern- Change in Consumer ment Govern- Consumer ment Govern- Price Change expendi- ment Price Change expendi- ment Index in CPI Govern- tures receipts Index in CPI Govern- tures receipts Percent (1967 from ment from Govern- from Annual Percent (1967 from ment from Govern- from Annual Unemploy- equals previous expendi- previous ment previous deficit or Unemploy- equals previous expendi- previous ment previous defteit or Year ment 100) year tures year receipts year surplus Year ment 100) year tures year receipts year surplus

1949 __ 5.9 71.4 -1.0 38.8 ------39.4 ------0.6 1962.. 5. 5 90.6 1.1 106.8 9.2 99.7 5.6 -7.1 195L 5.3 72.1 1.0 42.6 9. 7 39.5 0.3 -3.1 1963.. 5. 7 91.7 1.2 111.3 4. 2 106.6 1. 0 -4.7 195L 3. 3 n.8 7.9 45.5 6.8 51.6 30.6 6.1 1964__ 5. 2 92.9 1. 3 118.6 6.6 112.7 5. 7 -5.9 195L 3.0 79.5 2.2 67.7 48.8 66.2 28.3 -1.5 1965 .• 4. 5 94.4 1. 7 118.4 ------116.8 3.6 -1.6 1953.. 2.9 80.1 .8 76. 1 12.4 69.6 5.1 -6.5 1966.. 3.8 97.2 2. 9 134.7 13.8 130.9 12.1 -3.8 1954 .. 5.5 80.5 .5 70.9 -6.8 69.7 ------1.2 1967.. 3. 8 100.0 2. 9 158.3 17.5 149.6 14.3 -8.7 1955 .• 4.4 80.2 -.4 68.5 -3.4 65.5 -6.0 -3.0 1968 .. 3. 6 104.2 4. 2 178.8 12.9 153.7 2. 7 -25.1 1956 •• 4.1 81.4 1.5 70.5 2.9 74.5 13.7 4.0 1969 .. 3.5 109.8 5. 4 184.5 3. 2 187.8 22.8 3.5 1957-- 4.3 84.3 3.6 76.7 8.8 80.0 7. 4 3.3 1970 •• 4.9 116.3 5. 9 196.6 6.6 193.7 3.1 -2.9 1958.. 6.8 86.6 2. 7 82.6 7. 7 79.6 -.5 -3.0 197L 5. 9 121.3 4. 3 211.4 7. 5 188.4 -2.7 -23.0 1959 .• 5. 5 87.3 .8 92.1 11.5 79.2 -.5 -12.9 1972 .. 5.6 125.3 3. 3 231.8 9.6 208.6 10.7 -23.2 1960 .• 5.5 88.7 1. 6 92.2 ------92.4 16.7 .2 1973 .. 4.9 133.1 6. 2 246.5 6. 3 232.2 11.3 -14.3 196L 6.7 89.6 1.0 97.8 6.1 94.4 .2 -3.4 1974 •• 5.6 147.7 11.0 268.4 8.9 264.9 14.8 -3.5 ---- 34300 CONGRESSIONAL RECORD-HOUSE October 29, 1975 NO FEDERAL BAILOUT FOR been advanced to authorize such a policy of unsound :financial practices going back NEW YORK CITY should they reach the floor of the House. over a decade. _The city increased its The SPEAKER pro tempore. Under I am persuaded that massive and direct spending level above its current income a previous order of the House, the gentle­ Federal intervention into the financial, from taxes, and began to borrow money man from Tennessee Louisiana, Mississippi, have dropped out of the municipal bond of New York are being sold short by such Tennessee, and Texas and to serve other market almost entirely. Overemphasis a tactic. I am confident that they can areas through Panhandle Eastern Pipe on the importance of the New York solve their own problems without being Line Co.-projects curtailments of over City dilemma and its presumed impact reduced to humbled supplicants at their 46 percent of its system requirements. on the national bond market is simply Nation's Capital. United Gas Pipe Line Co.-which is au­ not warranted, and is self-deluding. The Finally, if ever there was a lesson for thorized to serve in the States of Ala­ available evidence indicates that New all of us as we begin our 200th year as a bama, Florida, Louisiana, Mississippi, York's difficulties have had a relatively people and Nation, it is before us now. and Texas and to serve five other inter­ minor impact on the situation facing Look well upon the fruits we reap with state pipelines which market natural most municipal borrowers. While these deficit spending, and consider what has gas east of the Mississippi River- proj­ rates have increased, so have the rates happened to the value of the American ects reduction of service approaching for other securities. dollar since the Federal Government 48 percent of its system requirements. Whether or not New York City does, embraced this same ruinous economic And, Transcontinental Gas Pipe Line in fact, default, there is much, much philosophy that has wounded New York. Corp.-authori~ed to serve in the States more that the city government can do Another "increase of the temporary limit of Alabama, Georgia, Louisiana, Mary­ to reverse its ruinous and profligate on the public debt" of an additional $20 land, Mississippi, New Jersey, my own financial policies that have brought this billion is staggering. This will bring our New York, North Carolina, Pennsylvania, great and once-proud city to its present national debt to $597 billion, and in the South Carolina, Texas, and Virginia­ lamentable condition. spring it will increase another $20 billion, projects reduced service amounting to The most important ingredient in the give or take a few billion. And up and up over 40 percent. new regime which must be instituted by it goes, and down and down goes the The natural gas shortage would never the political leadership of New York City value of the dollar. There are Members had occurred had it not been for the is the will and the courage to devise and of this House who apparently believe regulatory policies of the Federal Gov­ rigorously carry through to completion that this jolly jig can go on indefinitely. ernment and-quite frankly-for the a vigorous policy of retrenchment. If this It cannot and it will not, and we are persistent past failure of a majority will and courage is lacking, then nothing going to have to pay the piper before the within the Congress to do anything to will succeed, and the city will have been dance is done. The only real difference reform those policies. Only when the betrayed by a leadership too small­ between New York and the Federal Gov­ natural gas shortage contributed to a minded, too limited, and too weak to have ernment is that Washington can print national crisis in energy deficiency did been entrusted with her stewardship. money, and New York cannot. the Congress take heed of the many There is no need, nor is it seemly, for me Perhaps New York's Governor said it warnings voiced by both producers and to suggest the areas where this retrench­ better than I when he declared: "The ment is most necessary. Every newspaper days of wine and roses are over." consumers over the years. and news magazine offers suggestions CONTROLS ARE THE MEANS OF FURTHERING BU­ daily, and New Yorkers know better than REAUCRATIC INTERESTS AS OPPOSED TO THE others where the greatest economies can THE ENERGY NEEDS OF THE NA­ NATIONAL INTEREST be achieved with the least possible in­ TION AND WESTERN NEW YORK Why ought controls to be lifted? convenience and hardship to the people. CAN BE MET ONLY THOUGH THE That seems to be the central question None of this will be popular with every­ HOUSE AGREEING TO THE SEN­ to which the Congress is now address­ one, and some will complain loudly re­ ATE COMMITMENT TO DECON­ ing itself, and I think it is worth full gardless of what is done, but that does TROL NATURAL GAS consideration. not make retrenchment any less neces­ The SPEAKER pro tempore. Under a Price controls hold down the price at sary, although it clearly makes it more previous order of the House, the gentle­ which consumers can buy, so people politically difficult. A higher political man from New York (Mr. KEMP) is rec­ have no economic incentive to econ­ morality than that which has brought ognized for 30 minutes. omize on their use of energy. As the re- Octobe·r 29, 1975 C01 GRESSIONAL RECORD- HOUSE 3.!3{)3 suit of artificial lower prices, the de­ sum.cient return on its investment today m·al gas service could be interrupted mand for energy is greater than it would to have the funds necessary to continue this winter unless we assure enough nat­ be if there were no price controls. Econ­ exploration, recovery, and distribution ural gas. omists do not make any bones about the in the future. This regulation has de­ Let me say that the National Fuel Gas law of demand, which says that the stroyed-or at best severely dampened­ Co.-which services western New York­ lower the price, the greater the quantity the incentive to bring more natural gas is better prepared for the winter than demanded. Price controls have effects on line. Everyone knows it. But, the reg­ are most of the natural gas companies that are just as pernicious on supply, ulation continues in full force and effect. around the country. I commend them for because the lower the price, the lower In addition, intrastate natural gas­ being in such a good status. the profits and the lower the incentive moving inside just one State-is pro­ But, National Fuel Gas's present con­ to supply energy and develop new hibited from being moved through inter­ dition does not guarantee it will be the sources. Just the threat of price con­ state pipelines-moving between two or same in the future. If the shortage this trols is enough to introduce distortions more States-even when there are a pro­ winter is as severe as we can expectr-­ and inem.ciencies into the economy, as ducer and consumer agreeing upon a and that can be alleviated only through well as shortages. freely negotiated price and even where having a very mild winter or by our Controls eliminate the incentive and the gas is needed to keep plants open and adopting a policy of decontrolling nat­ ability to make the investment neces­ men and women at work. Everyone ural gas and making that new policy sary to insure the future availability of knows this. Yet, the policy continues in law-National's sources might-by ac­ energy. Talk about nationalization of full force and effect. tion of the regulators-be required to be the oil and gas industry has the same The specific examples of delay in de­ redirected to other companies in other negative effect of discouraging com­ cisionmaking are endless. areas of the country. Those who planned panies from making investments today I reported to the House on September well-such as National-would thus be in hopes of profits tomorrow. We can 4 about how the FPC had delayed for penalized to benefit those who did not already see effects of irresponsible gov­ 8 months the approval of an application plan well. ernment words and deeds in the efforts to deploy a more modern technology for Schools, hospitals, manufacturing by oil and gas companies to transfer exploration and recovery in the shale plants and businesses in western New their capital into businesses with a areas of the Appalachian States-an ap­ York would be severely affected by a lack lower public profile and a less likelihood plication against which the only brief of enough natural gas this winter, and of public confiscation. filed was almost immediately withdrawn. the list provided to me by the Emer­ It is dim.cult in the light of past and The Energy Research and Development gency Fuel Office of the State of New existing realities to argue that such pro­ Administration-ERDA-had approved York shows the specific establishments posals are either in the interest of the its portion of the application months be­ "subject to curtailment" in our area. public or assure the provision of energy fore the FPC finally did move into action. They are, as follows: resources in the future. But it is easy to Then, there is the Valley Gas Trans .. Akron Central School. see that such proposals coincide with mission case, a matter of substantial im­ Alden Central High School. the interests of the regulators. portance to assuring adequate supplies Amherst Central School. To put it simply and straightforward­ in western New York. This is a matter Battenfield American 011. ly, to allow market forces to determine which has to be decided by the Commis­ Bennett Manufacturing Company. the allocation of resources does not in­ sion no later than November 1-this Sat­ Buffalo City Schools. crease the demand for bureaucrats. urday-in order to guarantee the award Buffalo Forge. However, the bureaucrats' proposals all of 3% billion cubic feet needed this win­ Buffalo Merchandise Distribution Center. ter. The judge has already made his rec­ Charlotte Avenue School. increase the demand for bureaucrats. Cheektowaga. Central School. The bureaucracy has to grow when ommendations to the Commission, and Chevrolet--Buffalo. price controls are enforced. When he recommended the exception be per­ Chevrolet--Tonawanda. shortages result from the price controls, mitted. All interested parties then had Clarence Central Schools. the bureaucracy has to grow more in until early October to file any briefs op .. Columbus McKinnon Corporation. order to ration the commodities that posing the exception. None did; no op­ Continental Baking. are in excess demand. When the price posing briefs were filed. Thus, it was Darling & Company. incentives that cause the proper alloca­ from that point immediately cleared for Deaconness Hospital. tion of resources cannot operate because Commission action. To this date-almost Depew Central School. a full month later-the Commission has Dunlop Tire and Rubber Corporation. of the controls, it is the bureaucracy E. I. deNemours DuPont & Co. that produces t:he production schedules done nothing. I am told that the Com .. East Aurora Central School. which are forced on hapless suppliers. mission may not act on this noncontro­ Eden Central Schools. When the profit incentives for explora­ versial application until the new Chair~ Electro Division of Ferro Corporation. tion and investment are eventually de­ man is sworn in-which will be after No­ Erie County Home & Infirmary. stroyed, it will be Federal bureaucrats vember 1. Again, this is the public-inter .. Erie County Penit-entiary. who staff a nationalized oil industry. est-be-put-aside, the bureaucratic-in­ FMC Corporation Industrial Chemical Di· terests-are-paramotmt attitudes to vision. We can see exactly how these proclivi­ Frontier Central Schools. ties become realities when we look at which I have already made reference. By General Mills. what the Federal Power Commission has these standards the people of the service Griffith Institute. done and has not done with respect to area will just have to suffer along with­ Hamburg Central School. its own pollcies-those which aggravate out enough for industry, schools and Hamburg Junior High SchooL the energy crisis. hospitals until the bureaucratic interests Harlem Road School. Harrison Radiator. THE FPC'S RECORD ON NATURAL GAS are met. To me, these policies and ex .. amples reflect unconscionable conduct. Hewitt Rubber Company. The FPC's record in natural gas regu­ Holland Central School. lation has resulted in only one clear-cut The only effective way to remedy these Immaculate Heart of Mary Church. conclusion: it has reduced the Nation's problems is to change the law. That Iroquois Central School. natural gas supplies. means decontrolling natural gas and pro­ J. H. Williams Division of TRW, Inc. These are two general reasons for this. hibiting the regulatory agencies-here Kenmore-Tonowanda Central School. the Federal Power Commission-from Lackawanna Central School. First, the Commission insists on stop­ Lake Shore Central Schools. ping all reform efforts and in perpetuat­ interjecting its own bureaucratic inter.. est as paramount to that of the country Lancaster Central School. ing antiquated policies. Linde Division of Union Carbide Corpora· Second, the Commission moves at its and the economy. tion. own pace-a very slow one-no matter IMPACT ON WESTERN NEW YORK Madison Wire Co., Inc. what the national energy and consumer All of this was more than apparer1t to Maryvale Central School. needs might be. me when I received the latest computer Meyer Memorial Hospital. Millard Fillmore Hospital. The national FPC-mandated base price printout of the specific businesses, National Finishing Corporation. of 51 cents per thousand cubic feet is schools, hospitals, churches and similar Gold Bond Division of National Gypsum. totally unrealistic in light of today's facilities in or about the 38th Congres­ New York Wire Mills. costs. A company simply cannot make a sional District of New York whose nat- R. B. Newman Fuel Corporation. 34304 CONGRESSIONAL RECORD- HOUSE October 29, 1975 North Collins Central School. New York City time to restructure its will plunge us into a state of economic 0-Del-0 Division of General Mills. budgetary processes, so that it may· con­ chaos. Oatka Milk Corporation. tinue to operate, will not cost the Amer­ The President claims that ·to provide Orchard Park Central Schools. Republic Steel. ican public one cent. This becomes clear assistance to New York City in the form smallwood Elementary School. when the mechanics of such a guarantee of a Federal loan guarantee will under­ Spaulding Fibre. are explained: A Federal loan guarantee mine the basic federalism which sepa­ St. Francis of Athol Springs. would only operate in the event that rates the spheres of Federal-State-local St. Mary's School for the Deaf. the city ultimately defaults-something government operations. The President's State University of New York at Buffalo. which the President himself does not proposed amendment to the bankruptcy Strippit Division of Houdaille Industries. perceive even without a guarantee. Nor laws with Federal supervision over muni­ Sweethome Central School. does the President have to worry that Tonawanda Public School. cipal debt restructuring and necessary Trico Products. New York City will not make a concerted services is more of an interference with W & F Manufacturing Company. effort to restructure its budget: This the the concepts of federalism than a loan W. D. Hassett, Inc. city has already pledged and the State of guarantee. If the Nation is plunged into Westinghouse Electric. New York has imposed strict monitoring economic chaos, a gamble which the Williamsville Central School. procedures to insure this end. New York President is apparently willing to take, Worthington-eEl, Inc. City has already embarked on this course there will be no federalism left to pro­ There is no need to panic, but there and in the past 10 months has reduced tect. is cause to take action. National Fuel its payroll by over 31,000 employees. What this country needs is a restora­ Gas has sufficient supplies at this time. This is a reduction of over 10 percent in tion of confidence in the municipal bond But, there is reason to have great con­ city employees. market. A Federal loan guarantee will cern when you realize that the adequacy Furthermore, a wage freeze has been meet this end; the President's bank­ of National's supplies can be threatened enacted which covers all city employees ruptcy proposal will not. The time has by bureaucratic action. There is need for remaining on the payroll. The sincerity passed for finger pointing; what we have great concern when you realize that of the present New York City adminis­ to do now is to insure the financial sta­ similar institutions-hospitals, business­ tration to put its house in order cannot bility of our municipalities and our Na­ es, schools, churches in other sections of be questioned. Nor can the sincerity of tion. A loan guarantee will accomplish the country-that are not serviced by New York State in overseeing the re­ this end while permitting cities like New companies with adequate supplies-will structuring be questioned because it is York to take the necessary steps to in­ be hard put to continue operations this clear that the State has committed it­ sure that this situation does not recur. winter-to stay open and keep their work self to this goal and would, itself, be I call upon the Congress to reject the forces employed. threatened by default if New York City President's proposal, and enact respon­ I do not see any reason why jobs­ were to default. sible legislation which will meet the de­ thousands of them, education, health, What the President has so deviously mands of the present threat and insure and even religious practices ought to neglected to mention is the costs that are that it cannot again arise. be threatened in western New York be­ being incurred by the American taxpay­ ers as a result of the continued uncer­ cause of the bureaucratic interests of THE PASSING OF PETE FOSCO the FPC. tainty in the municipal bond market. The House should follow the example The President's proposal to amend the The SPEAKER pro tempore. Under a of the Senate. We should decontrol nat­ bankruptcy laws to embrace the inability previous order of the House, the gentle­ ural gas, although I would hope we of a municipality to meet its obligations man from Illinois (Mr. RosTENKOWSKI) would move to do so immediately. Win­ ignores this reality because it is a mech­ is recognized for 5 minutes. ter is already upon us in my area of the anism to be engaged after the fact of de­ Mr. ROSTENKOWSKI. Mr. Speaker, country. fault. In no way does it operate to on last Sunday one of Chicago's and the strengthen investor confidence in the Nation's most prominent citizens passed The Congress now has an opportunity municipal bond market. Will an inves­ away. Pete Fosco was at the· time of his before it to make a major breakthrough tor once burned again be willing to com­ death the widely admired general pres­ in the resolution of our natural gas prob­ mit its capital to the municipal bond ex­ ident of the Laborers' International Un­ lems. It should avail itself of it. cept at interest rates so much higher to ion of North America and a former com­ make the risk more tenable? I think not. missioner of the Board of Commissioners THE PRESIDENT'S SOLUTION TO Each day the President delays and the of Cook County, Ill. THE FINANCIAL CRISIS HANGING Congress refuses to act, costs the Ameri­ His career in organized labor spanned OVER NEW YORK CITY can taxpayers hundreds of thousands of a 60-year period. He was dedicated to dollars. The trend is clear: municipalities his union. He was dedicated to his coun­ The SPEAKER pro tempore. Under a are now being forced to market their ob­ try. He was dedicated to his ·city, and he previous order of the House, the gentle­ ligations at unprecedented interest rates. was dedicated to the Democratic· Party. man from New York the Washington Post York City has already taken severe and ingly complex financial world operates on Tuesday, October 28, which treats the painful steps to get its budget into line. like a 12-year-old's lemonade stand, and life and times of this great man in more It has :fired approximately 31,000 people that the moral self-righteousness of a detail. and a wage freeze has been enacted. schoolmarm is an appropriate balm for The article follows: Three thousand policemen have been laid the sufferings of millions of American PETER FOSCO, 81, LEADER OF U.~.: ION off and there is now talk of closing citizens. Peter Fosco, president of the 650,000-mem­ schools, precinct houses, and municipal Most anachronistically of all, perhaps, ber Laborers' International Union of North hospitals. These painful steps that the he believes that his cynical pablum will America and a vice president of the AFL-CIO, city has already taken are. only the be­ be swallowed by a people still choking on apparently suffered a heart attack and died ginning, as the city continues to tighten the mass of folksy lies that have been fed at his home in suburban Chicago Sunday. its belt. to them for the last 10 years-his confi­ He was 81. Fourth, the President said that a New dence doubtless arising from a belief that Mr. Fosco, who was honored by former York City default will result in only he can manipulate the Nation's worst President Nixon at a Columbus Day dinner antiurban prejudices to his benefit in this here three years ago, spent all of his adult "temporary inconvenience" to the peo­ life in the labor movement. He began as a ple of New York City and that the only crisis. construction worker in Chicago, was elected people to benefit from preventing a The impending default of New York to his first union post in 1916 and became default would be the bankers and the City raises two key questions for anyone head of the Laborers' International Union politicians. Here again, the President is purporting to deal seriously with it. in 1968. not being candid. If there is a New York First--from a. national perspective-is Mr. Fosco, who was born in Poland of City default it will be the people of New the question of the effect that default Italian paxents, was long one of this nation's York City who will suffer. The city will will have on the basic financial struc­ most powerful leaders. After his election as not be able to meet its payroll; employees tures that fund the American economy. president of the Laborers' International In the last 2 weeks, congressional com­ Union (LIU), Mr. Fosco worked to step up will be laid off in large numbers; city its organizing activities and educational and services will not be delivered. There is mittees have heard voluminous testi­ training programs. no question that a default by New York mony on this question. We have heard ot He was also active in the fight for federal will have a harsh and bitter and long­ the numerous small banks, in all parts construction safety legislation as well as other term impact on the people of the city. of the country, who hold half their capi­ laws, such as a recently adopted pension re­ Fifth, the President talks about pro­ tal in New York City notes; of the fact form act, that were of benefit to LIU mem­ viding in his legislative package for the that default will cost municipalities bers. issuance of a debt certificate by a bank­ everywhere approximately $3 billion in Mr. Fosco is survived by his wife, Carmela, two sons, James and Angelo, and three ruptcy court. The purpose of these debt added borrowing costs; and-most sig­ grandchlltlren, all of Chicago. certificates would be to assure that New nificantly-of the fact, stated even by York City has adequate funds to provide Arthur Burns, that default will seriously essential services. This is not only a pie set back whatever small recovery the THE PRESIDENT'S STATEMENT IS in the sky proposal, it is disingenuous. economy is currently enjoying. DECEPTIVE AND ffiRESPONSlliLE If nobody wants to buy New York City We have read, too, that Eurbpeans­ The SPEAKER pro tempore. Under a bonds before a default, who will want to led by the West German Chancellor-are previous order of the House, the gentle­ buy New York City bonds after a default? frightened by the prospect that the de­ woman from New York (Ms. HoLTZMAN) Bankruptcy by New York City is not fault of the world's financial capital will is recognized for 15 minutes. going to make its credit any more attrac­ hurt their own economic recovery, and Ms. HOLTZMAN. Mr. Speaker, Presi­ tive to prospective creditors. The Presi­ will erode the value of the dollar-though dent Ford's statement on New York dent should know better. the Europeans' reaction has been muted City's fiscal crisis is deceptive and ir­ When Pl.·esident Ford issued a pardon by the fact that they still cannot imagine responsible. The President said that "the to Richard Nixon he explained his act as that a great nation will let its greatest time has come to sort facts and figures follows: "Surely, we are not a revengeful city go bankrupt. from fiction!' But this statement simply people. We have often demonstrated a In response to all this testimony, to all adds to the fiction surrotmding the New readiness to feel compassion and to act this fear and uncertainty, our leader has York City crisis. out of mercy." It is appalling that Presi­ nothing to say. Just this: it just ain't so. First, President Ford stated that he dent Ford finds no compassion or mercy But does the President cite facts? Does assumes New York City would not de­ in his heart for New York City and its he refute arguments? No. Does he I'eally fault. His statement is not credible. Every 8 million residents but is only callous and believe that the American people have reliable observer of the New York City hardhearted to them. It is appalling to no desire for the facts? scene has said that New York City will see him take this attitude in this Bicen­ The inadequacy of the President's re­ default on December 1, unless the Fed­ tennial year toward the city which was marks on the national and international eral Government steps in beforehand. the first capital of the United States; the implications of default is exceeded only Second, President Ford said that a city in which our first President, George by the stubborn ignorance of his response New York City default would produce Washington, was inaugurated; and the to the second major question l'aised by "no loss" to the Federal Government. In city which is the greatest city in the the prospect of default-that is, what other words, he claims that a default by United States. will be its consequences for the 8 million New York City will cost the Federal tax­ citizens of New York City-not to men­ payers nothing. 'This again is deceptive tion the millions more in metropolitan and misleading. In fact, a New York City THE PRESIDENT FAILS NE\V YORK New York who work in, and rely on, the default will cost the Federal Govern­ The SPEAKER pro tempore. Under a city. ment at le~st one-half billion dollars­ previous order of the House, the gentle­ To this question, the President says, assuming no ripple effect whatsoever. man from New York (Mr. BINGHAM) is blithely, that default will only affect New This figure was developed by the non­ recognized for 5 minutes. York's "politicians"-presumably the partisan Congressional Budget Office in Mr. BINGHAM. Mr. Speaker, President ex-Congressman from Michigan's Fifth a report released by me today. Moreover, Ford's condescending speech on the sub­ District has a keen eye for the difference if New York City's default does affect ject of New York City·s fiscal crisis is between a "politician" from New York other States and municipalities-as full of the same kind of shallow thinking and a "statesman" from Grand Rapids, every economist has predicted-then the that has chara-cterized this small-minded and its big bankers. The President says cost to the Federal Government of a man ever since Richard Nixon selected that he will fix up the bankruptcy laws New York City default will range be­ him as his Vice President. The President to make sure that this is the result; "es­ tween $2.8 billion and $4 billion. It will seems to believe that a folksy manner can sential services:· he says, will all be also lead to an increase in unemploy­ be substituted for analysis of the issues; maintained. ment of about 500,000 people. that irrelevant quotations from Harry But while we an wait for the Rocke- , ..J 34306 CONGRESSIONAL RECORD- HOUSE October .29, 1975 feller estate in Pocantico Hills to turn cal, and manipulative·way in which the Perhaps your example will encourage more into a field of gnarled pumpkins, President has stomped on the honest brave and honest men to speak out, and let thoughts must occur to us about how efforts of both Democrats and Republi­ us hope that the·ir speech will enrich us with New York City will operate with no serv­ cans to cope with an enormous national language used as well and as wisely as yours. ices but those which Mr. President-or crisis. Just at the moment when facts Thank you for an act of courage we are not perhaps some Federal judge-considers given from public men very often these days. were emerging, at the moment when MIMI BURNS. "essential." Police, for instance, he ac­ equitable solutions were being proposed, knowledges are "essential." But what will our President, our "leader," has seen fit OCTOBER 17, 1975. occur to those arrested by the police? to try to end the process of debate and DEAR MR . MOYNIHAN: It iS unfortunate that Are the city's jails "essential''? What discovery. I trust that he will not suc­ when a representative of the United States about the court system, the prosecutors ceed; that both Democrats and Republi­ speaks the truth, a bombardment of criticism and public defenders-are they "essen­ occurs. I cannot help think that were the cans in Congress will go ahead develop­ comments about Idi Amin made by a spokes ­ tial"? or will the revolving door of jus­ ing facts and solutions, in the hope that man from a smaller nation, nothing more tice start spinning so wildly as to be­ the facts may even reach President Ger­ would have been said. Not that this incident in effect--nonexistent? ald Ford. should be blown into an international issue The questions multiply indefinitely. (which unfortunately it has) but I firmly Are schools "essential"? If so, is it "es­ believe that as a responsible member of the sential" that class size be less that 50 or MORE PRAISE FOR PATRICK United Nations, you should speak the truth 60-which will surely be the average class MOYNIHAN and call things as they are. I have followed Amin's excesses over the past years, and your size in New York City after default? And, (Mr. KOCH asked and was given per­ pegging him a "racist murderer" could not incidentally, if schools are not essential­ mission to extend his remarks at this have been more accurate. or if our schoolchildren see through the point in the RECORD and to include ex­ If the pressure mounts, and you must re­ charade of "education" in a room with 60 traneous matter.) linquish your comments via an apology, do other students-how many police will be Mr. KOCH. Mr. Speaker, last week I as we did in primary school : take your right required in order to control our 1 mil­ reported to my colleagues on the out­ hand, place it behind your back, cross your lion schoolchild-ren when they hit the pouring of support Ambassador Patrick fingers and say "I apologize to all those of­ streets? fended by my comments"-that way, all those Moynihan has received from my con­ in front of you who seek an apology wilfhear While Mr. Ford eliminates thousands stituents for his description of Idi Amin it , and all those behind you will know t hat of "nonessential" city jobs-and. he has of Uganda as a "racist murderer." At you didn't really give one. not even told us yet whether garbage col­ that time I sent forth copies of letters to Best of luck. lection is "essential", other millions of Patrick Moynihan which had been for­ Sincerely, people will still have jobs in the private warded to me by constituents. LAWRENCE T. DRISKELL. sector in New York. Is the mass-transit The letters have continued to pour in OCTOBER 20, 1975. system that gets them to work "essen­ and, as yet, there is still not one among Chief Delegat e PATRICK MOYNIHAN, tial"? Or should they walk to Manhattan them which expresses disapproval of our U .S. M i ss ion, each morning from the Bronx, and Ambassador to the U.N.'s forthright N ew Yor k, N.Y. Queens, and Brooklyn? statement. I am presenting further ex­ DEAR MR. MOYNIHAN: My wife and I would Mr. Ford says that New York has been amples of the letters I have been receiv­ like you to know that we agree wholeheart­ a sinfully wasteful city. He reiterates ing with the thought that this matter is edly with your remarks concerning President half-baked cliches about New York City one of continuing interest to my col­ Amin. having too many public employees who We believe he is a "racist murderer" and leagues: are glad that you had the courage to speak are paid too much and get enormous pen­ OcTOBER 20, 1975. out. sions-ignoring the facts revealed by Mr. PATRICK MOYNIHAN, Sin cerely yours, congressional hearings, facts which show Chief Delegate, STANISLAW FERNANDES. that New York City's policies toward its U .S. Mission. employees are about the same as those of DEAR MR. MOYNIHAN: It was with pleasure OCTOBER 20, 1975. and a great deal of pride that I learned of Mr. PATRICK MOYNIHAN, most major American cities. But Jerry your astuteness and courage when you de­ Ford has no need of facts when cliches Chief Delegate, U.S. Mission, scribed President Idi Amin of Uganda, cor­ New Y01·k, N.Y. are conveniently at hand, when prej­ rectly, as a murderer. DEAR MR. MOYNIHAN: Accolades are in or­ udices are there to be manipulated, and For too long, it seems to me, the United der for the truth so nobly spoken in your when the prospect of delivering a stern States has turned its diplomatic other cheek denunciat ion of President Idi Amin of Ugan­ lecture on fiscal probity beckons so al­ in the United Nat ions chamber discussions da. Besides the emotional impact of your luringly. and I am delighted to find that the time has stat ement, the logic that you used was so Mr. Ford has decided who to blame for come for unabashed honesty. commendable. It is a pleasure to support you, the New York crisis, and he has decided, Please accept my thanks for a job well and certainly in my case, it is done whole­ done in the hist oric American tradition. heart edly. too, just how to punish the city. How­ Sincerely, Sin cerely, ever, he has apparently omitted from his ROBERT A. AKST. punishment list some of the men who LEWIS G . FLEMING. might be thought to be responsible for OCTOBER 19, 1975. OCTOBER 21 , 1975. the city's problems-men like the harsh­ Mr. PATRICK MO YNIHAN, Hon. PATRICK MO YNIHAN, est of Mr. Ford's pseudopuritans, Mr. Uni ted St ates M ission, Un ited Nations Mission, William Simon, who was deeply involved New York, N.Y. New York, N.Y. in selling New York's bonds, and Mr. DEAR MR. MOYNIHAN: My wife and I want DEAR AMBASSADOR MOYNIHAN : Please ac­ to applaud you on your re~nt speech con­ cept my congratulations and heartfelt Ford's chosen Vice President, Nelson cern ing Idi Amin, and your actions since thanks for your forthright statement of Rockefeller, the great promoter of New then. Only sane thinking like yours can October 5. Your characterization of Presi­ York State's "moral obligation bonds," keep the United Nations a viable organiza­ dent Amin of Uganda as a "racist murderer" which many experts-like State Con­ tion in the face of hatred being shown Israel. was fully justified. troller Arthur Levitt--feel were a cause You have our fullest support. Moreover, It is time that the United States spoke of the current fiscal crisis. we feel proud at being Americans, more so out when all that we believe in and cher­ because of your words· and acts. ish is being recklessly attacked by bigot s I do not here propose that the urge to Sincerely, · blame be encouraged. Nor do I say that, whose only claim to distinction is the meas­ ure of human misery caused by their des­ just because he is a Republican, Gerald potic and cruel conduct. Ford is wrong. On the contrary, in watch­ NEW YORK, N.Y., October 19, 1975. I sincerely hope you will stand by your ing hearings in the House on New York's PATRICK MOYNIHAN, statement. crisis, I have seen Republicans extremely Chief D elegate tc• the United Nati ons. Fait hfully yours, sympathetic with New York's human DEAR MR. MOYNIHAN: I should have known MICHAEL E. F'REELUND. problems, and have watched them care­ wit hout Ed Koch's announcement that you fully trying to dispel the miasma of myth would have been attacked for speaking out OCTOBER 17, 1975. so directly about President Idl Amin. Plain­ Hon. PATRICK MOYNIHAN, from about the current crisis. So that speaking is what the world, smothered by Delegate, U.S. Mission, ,New York, N.Y. what I have to say here is not partisan: hypocrisy, lies and non-speak, needs for .its DEAR MR. MOYNYHAN: I concur entil•ely I simply am deploring the cliched, cyni- very survival. with your remarks . regarding President Idl Octobe1· 29, 1975 CONGRESSIONAL RECORD- HOUSE 34307 Arnin of Uganda that you delivered on CONGRESS SHOULD RESPECT THE of 1974, recognized a need for the pro­ OCtober 5 and I am gratified that you took FEDERAL PRIVACY ACT tection of individual privacy. Our action this stand. Good luck in your further under­ should be consistent with our intent. This takings on our behalf. (Mr. KOCH asked and was given per­ small responsibility of obtaining written Very truly yours, mission to extend his remarks at this consent, now and perhaps to a limited Miss B. C. GLASER, point in the RECORD and to include ex­ degree in the future, should not pose a traneous matter.) OCTOBER 17, 1975. great burden to those Members who Mr. KOCH. Mr. Speaker, with the im­ stand behind the principles upon which l\1r. DANIEL PATRICK MOYNIHAN, plementation of the Privacy Act of 1974 a Chief Delegate, U .S. Misslon to U.N., the Privacy Act of 1974 was created. New York, N.Y. great deal of concern has been raised Minor inconveniencies can always be re­ DEAR MR. MOYNIHAN: If State Department about congressional caseworker access to solved with a modicum of time and officials are pressing you to withdraw there­ agency information relating to constitu­ patience. marks you made (haven't of course seen this ents. Numerous Federal agencies have The principles of the Privacy Act in our N.Y. press-maybe I've missed it) then apparently refused to disclose informa­ I hope and pray you won't give in to the should not be abandoned for our conven­ tion on constituents to Members' case­ ience. hypoorisy of said department. Diplomacy workers without first obtaining written needn't be a complete sell-out as it has been for as long as I know. consent from the constituent. You have made a statement for all people OMB has circulated a draft supple­ POSTAL REORGANIZATION ACT and I hope you will continue to stand on it. ment to the OMB Privacy Act guidelines AMENDMENTS OF 1975 There are hundreds of thousands of Amer­ which suggests that Federal agencies basketball team, the L.I. Pro-Imps, in the Virtually all sports were represented-if traneous matter.) . . days before there was an NBA or an you turned the calendar back far enough: Mr. ADDABBO. Mr. Speaker, ciVIl ABA ... he owned and raced his own tennis pro George Seewagen; ex-boxers leaders and outstanding journalists re­ horses . • . he has been a TV and radio Johnny LoBianca (now a ref) and Petey cently celebrated the 50th a~ive~sary_ of broadcaster ... his stories often have been Burns. Louis O'Neill in the communicatiOns m­ selected in the annual collection of "Best The runners included Sid Nash (New­ town), the current assistant mutuel man­ dustry. Lou has spent 40 of t~os~ 50 years Sports Stories of the Year" . . . he's always with the Newhouse orgaruzatlon, cur­ been a soft touch when any of the old sports ager at Roosevelt Raceway; Phil Palese (Bry­ needed a hand--or a buck .•. he's been a ant, Seton Hall), now executive director of rently as resident sports expert for the sustaining force to the junk-car industry, Flushing Hospital .•. basketball produced Long Island Press. having never been known to buy other than some of O'Neill's former wage-slaves, includ­ I want to join Lou's many friends and a used car. ing Vince Starace, Bruno and Rocco Valvano, admirers in wishing him continued suc­ Probably most of the people at the Ric­ Billy Dworsak and Johnny Nucatola ... in cess as a sports commentator and as a cardo's blast knew a different side of the the baseball contingent were Bernice Gera reporter's reporter. We are proud that many-splendored gent who in Happy Val­ and scout AI Harper of the Mets; Charley ley (Ravenswood) was known as "Luigi Weigold, who at 78 thinks Tom Seaver Lou is based in Queens with the Long wouldn't be tough to hit; Frank Capek, Emil Island Press and that my constituents Onello" ... that's what the night was about. Hroch, Jimmy Varriale, Howie Gosdorfer, Blll and others in the area have access to Penny, George Bird, Rudy Blelecky, Nick his talents. The shindig had its inception more than Ferri, George and Pete Filardi and Ed Young­ 20 years ago when O'Neill turned down a ling-plus the ones I missed in the hand­ The testimonials and commendations "testimonial" proposition advanced by Frank given Lou O'Neill over the years and par­ shaking maelstrom whirling around Luigi all Tempone, director of the Long Island City night. ticularly now on the occasion of his 50th YMCA, and Don Rodda, a former Star­ The speaking program was mercifully year in communications are well de­ Journal In.lnlon who's now PR. director at brief-another contribution to success .• • served and it is a pleasure to add my Flushing Hospital & Medical Center •• • my assignment covered a 40-year association October 29, 1975 CONGRESSIONAL RECORD-HOUSE 343.09 with the guest of honor . George Douris Many explanations have been offered about In my judgment, no one has yet given pinch-hit for Matt Troy Jr., pinch-hitting what led New York City deeper and deeper these questions a satisfactory answer. for Mayor Beame ... despite his financial into this quagmire. Instead, Americans are being told that un­ straits, the Mayor gifted Lou with a set of Some contend it was long range economic less the rest of the country bails out New gold cuff links . . . Don Rodda made some factors such as the flight to the suburbs of York, there will be catastrophe for the United special presentations, one an oil painting of the city's more affiuent citizens, the migra­ States and perhaps for the :vorld. tion to the city of poorer people, and the de­ Is this scare story true? Lou whlch was unveiled by daughter Louray Of course there are risks that default and son Lou Jr. Both the painting and a parture of industry. Others argue that the big metropolitan could cause temporary fluctuations in the trip to Ireland, ancestral home of the financial markets. But these markets have O'Neills, came from the assembled guests and city has become obsolescent, that decay and pollution have brought a deterio1·ation in already made a substantial adjustment in other contributors ... the latter included anticipation of a possible default by New Fred Capossela, former the "Voice of New the quality of urban life, and that New York Racing" . . . Freddy couldn't make it York's downfall could not be prevented. York City. Let's face one simple fact: most other Claims also are made that because of New from Florida but weighed in with long-dis­ York City's troubles, other municipalities tance phone felicitations ... many others cities in America have faced these same chal­ lenges, and they are still financially healthy will have grave difficulty selling their bonds. sent Lou telegrams of congratulations ... I know this troubles many thoughtful citi­ Maestro Tempone and his YMCA staff can today. They have not been luckier than New York; they simply have been better managed. zens. well take a bow because that office handled But, the New York City record of bad the myriad details of an exceptional affair There is an old saying: "The harder you try, the luckier you get." I like that defini­ financial management is unique among . . . good show, gals and guys, and keep on municipalities. Other communities have a truckin', Lulgl. tion of "luck". During the last decade, the officials of solid reputation for living within their New York City have allowed its budget to means. In recent days and weeks, other local PRESIDENT'S ADDRESS TO NATION­ triple. No city can expect to remain solvent governments have gone to investors with if it allows its expenses to increase by an clean records of fiscal responsibility and have ~L PRESS CLUB average of 12 percent every year, while its had no difficulty raising funds. people and their representatives in Congress I commend the President for his into panicky support of patently bad policy. "straight talk" on the subject. He minced and unlimited sick leave after one year on the job. The people of this country will not be stam­ no words and I would hope all Americans The record shows that in most cities, mu­ peded; they will not panic when a few des­ would take the time to read them for nicipal employees have to pay 50 percent or perate New York officials and bankers try to there is a special message here that does more of the cost of their pensions. New York scare New York's mortgage payments out of indeed touch every community and each City is the only major city in the country them. one of us as individuals. that picks up the entire burden. We have heard enough scare talk. The full text of the President's remarks The record shows that when New York's What we need now is a calm, rational de­ are as follows: municipal employees retire they often retire cision as to what the right solution is­ TEXT OF REMARKS BY THE PRESmENT DELIV­ much earlier than in most cities and at pen­ the solution that is best for the people of ERED AT THE NATIONAL PRESS CLUB, WASH­ sions considerably higher than sound retire­ New York and best for all Americans. INGTON, D.C., OCTOBER 29, 1975 ment plans permit. To be effective, the right solution must The record shows New York City has 1a meet three basic tests: Today I want to talk to you about a mat­ municipal hospitals; yet, on an average day, ter of concern to all Americans. It must maintain essential public services 25 percent of the hospital beds are empty. for the people of New York City. It must New York City, where one out of every 25 Meanwhile, the city spends millions more to Americans lives, through whose "Golden protect the innocent victims of this tragedy. pay the hospital expenses of those who use There must be policemen on the beat, fire­ Door" untold millions have entered this land private hospitals. of liberty, faces a financial showdown. men in the station, nurses in the emergency The record shows New York City operates wards. The time has come for straight talk-to one of the largest universities in the world, these eight mlllion Americans and to the free of tuition for any high school graduate, Second, the solution must assure that New other 206 million Americans to whom I owe rich or poor, who wants to attend. York City can and will achieve and maintain the duty of stating my convictions and con­ As for New York's much-discussed welfare a balanced budget in the years ahead. clusions, and to you, whose job it is to carry burden, the record shows more than one cur­ And third, the right solution must guaran­ them throughout the Nation and around the rent welfare recipient in ten may be legally tee that neither New York City nor any world. ineligible for welfare assistance. other American city ever becomes a ward of The time has come to sort facts and fig­ Certainly I do not blame all the good peo­ the Federal Government. ures from fiction and fear-mongering in this ple of New York City for their generous in­ Let me digress a minute to remind you terribly complex situation. The time has stincts or for their present plight. I do blame that under our constitutional system, both come to say what solutions will work and those who have misled the people of New the cities and the Federal Government were which should be cast aside. York City about the inevitable consequences the creatures of the States. The States dele­ And the time has come for all Americans of what they were doing over the last 10 gated certain of their sovereign powers-the t o consider how the problems of New York years. power to tax, police powers and the like­ and the hard decisions they demand, fore­ The consequences have been: to local units of self-government. And t hey shadow and focus upon potential problems A steady st-ream of unbalanced budgets; for all Federal, State and local govern­ can take these powers back if t hey are Massive growth in the city's debt; abused. ments-problems which demand equally ha1·d Extraordinary increases in public employee decisions from them. The States also relinquished cert ain sov­ contracts; ereign powers to the Federal Government-­ One week ago New York City tottered upon And total disregard of independent experts t he brink of financial default which was some altogether and some to be shared. In who warned again and again that the city return the Federal Government has certain deferred only at the eleventh hour. was courting disaster. The next day Mayor Beame testified here There can be no doubt where the real obligations to the States. in Washington that the financial resou1·ces responsibility lies. And when New York City I see a serious threat to the legal relation­ of the city and state of New York were ex­ now asks the rest of the country to guarantee ships among our Federal, State and local hausted. Governor Carey agreed. its bills, it can be no surprise that many governments in any congressional action It's now up to Washington, they said, and other Americans ask why. which could lead to disruption of this tra­ unless the Federal Government int ervenes, Why, they ask, should they support ad­ ditional balance. Our largest city is no dif­ New York City within a. short time will no vantages in New York that they have not ferent in this respect than our smallest longer be able to pay its bills. been able to afford for their own communi- town. If Mayor Bea.me doesn't want Gover­ The message was clear: Responsibility for ties? nor Carey to run his city, does he want the New York City's financial problems is being Why, they ask, should all the working peo­ President of the United States to be acting left on the front doorstep of the Federal ple of this country be forced to rescue those Mayor of New York? Government--unwanted and abandoned by who bankrolled New York City's policies for Now, what is the solution to New York's it . real parents. so long-the large investors and big banks? dilemma? 34310 CONGRESSIONAL RECORD -HOUSE October 29, 1975 There are a.t least eight di1ferent proposals In the event of default, the Federal Gov­ larger and larger doses o! the same political under consideration by . the Congress in­ ernment will work with the court to assure stimulant that has proved so popular and -tended to prevent default. They are all vari­ that police, fire and other essential services successful in Washington for so many years. ations of one basic theme: that the Federal for the protection o! life and property in None of us can point a completely guilt­ Government would guarantee the availa­ New York are maintained. less finger at New York. None of us should bility of funds to New York City. - The proposed legislation will include pro­ now derive comfort or pleasure from New I can tell you now that I am prepared to vision that as a condition of New York City York's anguish. veto any bill that has as its purpose a Fed­ petitioning the court, the city must not only But neither can we let the contagion eral ball-out o! New York City to prevent a file a good faith plan for payments to its spread. default. creditors but must also present a program As we work with the people of New York I am fundamentally opposed to this so­ for placing the fiscal affairs of the city on a to overcome their difficulties-and they will­ called solution, and I will tell you why. sound basis. we must never forget what brought this great Basically, it is a mirage. By giving a Fed­ In order to meet the short term needs o! center of human civilization. to the brink. · eral guarantee we would be reducing rather New York City the court would be empow­ If we go on spending more than we have. than increasing the prospect that the city's ered to authorize debt certificates covering providing more benefits and services than budget will ever be balanced. New York new loans to the city which would be paid .we .can pay for, then a. day of reckoning w111 "City's officials have proved in the past that out of future revenues ahead of other cred­ come to Washington and the whole country they will not face up to the city's massive itors. just as it has to New York. network of pressure groups as long as any Thus, the legislation I am proposing will Let me conclude with one question of my alternative is available. I! they can scare the do three essential things. own: whole country into providing that alterna­ First, it will prevent, in the event of a When that day of reckoning comes, who tive now, why shouldn't they be confident default, all New York City funds from being will bail out the United States of America? they can scare us again into providing it tied up by lawsuits. Thank you. three years from now? In short, it encour­ Second, it will provide the conditions tor ages the continuation of "politics as usual" an orderly plan to ">e developed for pay­ in New York-which is precisely not the way ments to New York's creditors over the long "FOUR LUXURY TOWERS TO HOUSE to solve the problem. term. THE POOR OPENING IN HARLEM" Such a step would set a. terrible precedent Third, it will provide a way for new bor­ for the rest of the Nation. It would promise rowing to be secured by pledging future the New York Times, Oct. 28, 1975] with changing people's lives, not just creat­ mosaic tiles -that are supposeci. to be all but FoUR LUXURY TOWERS To HOUSE THE POOR ing another future slum." impervious to graffiti. Other esthetic fea­ OPENING IN HARLEM "Look there," Mr. Nicol said as he stood on tures include brick sidewalks and terraced (By Robert E. Tomasson) the roof of one of the towers, gesturing landscaping complete with a stream. southward. "From 112th to 115th Street, A federally subsidized housing project for from First to Seventh Avenue, a whole cor­ the poor is scheduled to open in East Harlem ridor of public housing built in the nineteen­ in about two months w ith luxury features fifties and sixties. It wiped out hundreds of THE REVISED HOMEOWNERSHIP never before included in low-income housing businesses and brought a tremendous con­ SUBSIDY PROGRAM IS A SNARE in the United States. Depending on the point centration of the poor, which is a problem AND A DELUSION of view, the project is regarded as a monu­ by definition." ment to government compassion or an epi­ (Mr. DE LA GARZA asked and was _ taph on bureaucratic folly. TWO WHO PULLED OUT given permission to extend his remarks The project is Taino Towers, four 35-story Two major tenants that Mr. Nicol expected at this point in the RECORD and to in­ buildings with a total of 656 apartments on in the project have decided not to rent space clude extraneous matter.> the block between 122d and 123d Streets and there: the Health Insurance Plan and the Second and Third Avenues. The centrally Board of Education, which considered estab­ Mr. DE LA GARZA. Mr. Speaker, in re- · air-conditioned towers will have an indoor lishing a bilingual school. cently announcing a revised home uwn­ swimming pool, a gymnasium, an auditorium, Mr. Nicol, who has been described by of­ ership subsidy program, the Secretary . a theatre, a greenhouse, roof laundry rooms ficials who have worked with him as "dy­ of the Department of Housing and Ur­ and play areas, and underground parking namic," "persuasive" and "intractable," ac­ b~n Development observed that the new with attendants 24 hours a day. knowledged that he was struggling to pre­ program differs from the old in .ce:rtain There also will be six-bedroom triplex serve his dream in the face of complex fi­ significant aspects, and she is absolutely apartments with 11-foot-high ceilings and nancing. 20-foot-long balconies. Most of the initial funds came from con­ right about that. Tentative minimum rent for the six-bed­ struction loans, totaling $39-Inillion, from Unfortunately, the differences are not room apartments is $113.28, including util­ a consortium of nine banks headed by the of such a nature as to be beneficial to ities, under Federal subsidy plans committed Chemical Bank. All but a small part of the low-income families. Just the oppooite, for 40 years. 40-year 7 per cent mortgages-one for each in fact. The average construction cost per apart­ tower-are guaranteed by the Federal Hous­ Under this new program, the home­ ment is $68,597, by far the largest ever in this ing Administration. owner must make a down payment of country for low-Income housing. Federal offi­ In addition, the project received about $6- cials say that the $45-million cost of the million in city and Federal funds, including at least 3 percent of the :first $23,000, development represents the largest single $3-million from H.U.D.'s Model Cities pro­ plus 10 percent of any additional amount allocation for a community project ever made gram, for such expenses as architect's fees of the purchase price, plus all closing by the Department of Housing and Urban and extensive administrat ive costs. In addi­ or t:;:ansfer costs. Development. tion, New York City has agreed to give full Under the old program, the minimum The basic features of the project-which property-tax abatement. investment was $200. are not likely to be matched for many years, Included in the $39-million mortgages are The official announcement of the new If at all, in low-Income housing-have evoked funds to pay monthly interest until the proj­ program states that "HUD subsidy pay­ strong criticism from city and state housing ect begins receiving income. These funds can officials, Including some with the H.U.D. it­ carry the project until the last tower is com­ ments will reduce mortgage interest self. pleted next June, about six months after costs to as low as 5 percent,'' but the NONRESIDENTIAL SPACE families start moving into the first tower. homeowner must contribute at least 20 The principal criticism is of the large Officials at the Chemical Bank conceded percent of his adjusted gross income to­ amount of nonresidential space. In each that the timing would be close. If the interest ward monthly mortgage, insurance, and building the first six floors-a total 265,000 reserve runs out while any building is incom­ taxes. square feet, or the equiv~.Ient of about five plete, the result could be a mortgage default. The old program permitted interest and one-half floors of the PanAm Building­ The F .H.A. would then pay off the balance rates as low as 1 percent for the home­ were constructed for nonresidential use. and try to sell the buildings to a private This space houses some of the amenities, developer. owner. but includes large areas intended !or agen­ The Department of Housing and Urban This new program, which has the of­ cies that would provide educational and Development has agreed to pay an interest ficially announced purpose of spurrh1g medical services to the community while subsidy of $1,574,000 a year for the mort­ construction and rehabilitation of single­ paying rent that would be used to keep gages, enough to reduce the 7 per cent bank family homes for low- and moderate­ apartment rents low. rate to about 2 per cent. In addition, it is to income families, is a snare and delusion. But commercial tenants have not turned pay $497,000 a year in direct rent subsidies It is designed, I am told, to help people up, placing the elaborate financing of Taino for 40 per cent of the tenants. Taken to­ in the $9,000 to $11,000 income bracket. Towers in doubt. gether, interest and rent subsidies are a "They got everything they wanted and now 40-year Federal commitment of $82.84-mil­ An income in this range, I can assure they don't know what to do with it," said lion. my colleagues, is not considered "low" an official in the local H.U.D. office, refer­ If, as now seems probable, Taino Towers among the people of the 15th Congres­ ring to the community sponsor, the East do not earn the projected $1.2-million a sional District of Texas. It is not even Harlem Tenants Council. year from the nonresidential space, residen­ looked upon as moderate. That is a high S. William Green, regional administrator tial will have to increase. Thus, even with income to most of the people in my of the Federal Agency, said that because of subsidies, poor families may not be able to district. the unprecedented inclusion of nonresiden­ afford the rents. This, in turn, would jeopar­ This program may have merits of its tial space in a federally subsidized housing dize the subsidies, since these apply to fam­ project, final approval had been given in ilies already receiving welfare payments. own, but there is no justification for put­ Washington. Mr. Nicol said that tenants had already ting it forward as one designed to assist The state's Urban Development Corpora­ been chosen for Taino Towers-which are low-income families to have houses of tion and the city's Housing and Development named for an ancient tribe of Caribbean their own. It will be no help at all in Administration had considered financing the Indians in honor of East Harlem's largely my south Texas area. We are being un­ project, but pulled out when the sponsoring Hispanic population. fairly left out of the program. group insisted on Including the nonresiden­ First preference is for families forced out Mr. Speaker, these are the areas and tial space. of slum dwellings that were demolished to these are the low-income people whose THE MAN BEHIND IT make way for the project. Mr. Nicol said needs are greatest. Those needs are not The guiding force behind the project is that the East Harlem Tenants Council had Robert Nicol, a 40-year old Presbyterian min­ maintained contact with about 225 such touched by HUD's revised homeowner­ ister who left a.n East Harlem church to be­ families that had expressed interest in Taino ship subsidy plan. It is futile and foolish come the full-time $17,200-a-year project Towers. Other tenants are to come from the to pretend otherwise. I am today con­ administrator. He ofl'ers no apologies for in­ impoverished neighborhood. tacting Secretary Carla Hill to inform sisting on the nonresidential space. All tenants wlll be required to attend five her of her gross omission to the needs "You don't predicate providing basic and t hree-hour demonstrations on apartment of the people of small town rural Amer­ humane services for people on a possible fu- and project upkeep. ica. I do not disagree that our friends CXXI--2161-Part 26 343:12 CONGRESSIONAL RECORD- HOUSE Octobe1· 29, 1975

of the large cities need assistance, but it Milwaukee Sentinel, October 8, 1975: It is the same tendency that was displayed should not be done at the expense of "Ford's tax plan is clearly excessive. It last month in the President's misguided pro­ rural America. will not provide a stronger foundation for posal to pour $100 billion of subsidized loans economic recovery, but instead provide a and guarantees into the energy industry. firmer foundation for Ford's campaign for The administration argues that deficits are THE PRESIDENT'S TAX AND re-election. bad, but it wants to cut taxes without any SPENDING PROPOSAL "Politics and responsible economic poUcies realistic or precise proposal for cutting don't mix. Ford's unwise, untimely and spending." Mr. McFALL. Mr. Speaker, if the Pres­ clearly po11tical approach proves that." Washington Star, October 7, 1975: "Does ident's tax and spending proposal were a St. Louis Post Dispatch, October 10, 1975: President Ford have an economic policy?-a dramatic production prepared for Broad­ The President's proposal "is a bad bargain. strategy attuned to present and expected eco­ way, it would have closed weeks ago out ... By making his tax plan contingent on nomic conditions, aimed at producing the a pig-in-a-poke spending ceiling, MJ.·. Ford elusive combination of prosperity and price of town. has made debate of the tax proposal itself stabiUty? The reviews from newspaper editorials academic. The President's plan may well be "If anyone in the Executive Branch is de­ across the country have been almost needed and it may well be more effective in vising such a policy these days, the word is unanimous in panning the proposal. the way it is structured than the 1975 tax not getting to the top. Some of Mr. Ford's From St. Louis to Sacramento, from Bir­ cuts that are to be extendeu in 1976, but the recent pronouncements, on matters having mingham to Boston, it has bombed. President's threat of a veto without an ac­ great import for the economic future, seem The editorials bristle with descriptions companying spending limit pledge reduces to have been delivered without particular like this: "Political gamesmanship," "un­ the whole business to campaign rhetoric." thought to the economy. wise, untimely, and clearly political," Newsday, Long Island, October 8, 1975: "The President has admitted as much with "Ford's plan borrows heavily from the Nixon respect to his proposal for $28 billion in "flawed," "pig in a poke,'' "deliberately program not only in language and ideology 1976 tax cuts, to be followed nine months obscure," "no discernible merit," "hyped­ but, sadly, in technique as well. It is delib­ later by equivalent budget cuts for Fiscal up political rhetoric," "approached dem­ erately obscure in detail. It makes promises 1977. agoguery," "political gimmick." that even the President must know he can­ "Mr. Ford ·s idea is to twin t he proposed tax In short, the critics have written the not keep. It includes a built-in scapegoat­ cut and budget ceiling as means of rein­ proposal off as a better-to-be-forgotten Congress-in the case of failure. If Ford had ing in the growth of the government. If Con­ deliberately set out to confuse the critical gress should refuse to adopt the ceiling, he flop. issue of whether this year's tax cuts should The common thread running through says, he would veto any tax relief for next be extended in 1976 as a vital antirecession­ year, including the desirable extension of the much of the comment is that the Pres­ ary measure, he could not have done a better 1975 anti-receRsion tax cuts. Then withhold­ ident, in seeking to tie a tax cut to an job." ing taxes would rise after January 1. If the equivalent reduction in spending, was Sacramento Bee, October 8, 1975: "Presi­ nation's recovery from the recession ShOllld politically motivated, and that the plan dent Ford's proposed $28 billion permanent be stalled: too bad. is unwise, unrealistic, impossible, or all tax cut, linked to an impractical ceiling on "That kind of thinking may make political three. federal spending, is flawed in so many ways sense. It outpromises congressional tax-cut­ it warrants rejection by Congress ... Ford ters while appealing to the anti-big govern­ This is almost precisely what congres­ has declared Congress must take the whole sional leaders said when the administra­ ment sentiments of Republicans who might package-tax cut plus spending ceiling-or be drawn to a Reagan candidacy. If it leads tion first unveiled i1:6 production on Oc­ else. The legislators don't have to play this to a stalemate that hurts the economy, blame tober 6. kind of political gamesmanship with the Congress. As Speaker ALBERT said: economy. Congress should address the tax "But this political rationale has nothing to For the Congress to act on the President's cut with a more responsible and equitable do with economic policy, except in the sense proposed budget ceiling without the full re­ program, preferably an extension for just a that ignoring economic implications is bad view required under the Budget Act would year of the 1975 reduction. It should stand policy!' represent a frontal assault on the new budget firm against any attempt to tie its hands on New York Times, October 13, 1975: "As a process which gives the Congress its best hope spending." diversionary maneuver to distract attention of acting responsibly on budget matters. It Minneapolis Tribune, October 8, 1975: from a bleak record of economic mismanage­ would be shortsighted to take this action now "President Ford made another campaign ment over the last seven years by the Nixon and destroy the process which would achieve speech Monday night (October 6). Had it and Ford Administrations, the tax-and­ the sought-after objective of budget control been merely a Goldwatered-down version of budget cut proposal has some political use­ for the future. orthodox economic conservatism, his tele­ fulness. It has no other discernible merit ... vision and radio address might have been in His tax message is not the serious program The process is working. order even with elections more than a year of a responsible leader; it is a political chi­ This Friday the House Budget Com­ away. But in this speech, a tax and budget mera projected by a candidate playing for mittee is scheduled to report out the proposal, the President seemed intent on masking the inadequacies of what he offered votes in a year-off election instead of seek­ second budget resolution for fiscal 1976, with polemic that at times approached dema­ ing realistic answers to the challenge of un­ and this could be on the House floor as goguery ... President Ford's predecessor employment and inflation." early as next week. was fond of the extravagant phrase, evident­ Chicago Sun-Times, October 12, 1975: And, at the same time, the House ly on the assumption that if something "With the economy still closer to recession Ways and Means Committee is in the could be described as the first ever or the than to recovery, President Ford has sought most significant since the Creation, it would confrontation with Congress over fiscal policy final stages of writing a responsible tax rather than compromise. The hyped-up reform-tax cut package that will be on be popular. 'I propose tax reductions totaling $28 billion-the big5est in our history,' Ford political rhetoric that accompanies this the House floor in early November. said Monday night. The spirit of Nixon lives." strategy can only delay and confuse resolu­ To disrupt this process in response to Birmingham (Ala.) Post-Herald, October tion of the most urgent problem now before the President's political gimmickry 8, 1975: "President Ford's proposal to cut the government ... would be folly. taxes $28 billion in 1976 may be good presi­ "While the ideological implications of a What we are dealing with, of course, dential politics, but it's a depressingly dreary large national government are of widespread example of the inflationary, pie-in-the-sky concern, Ford misreads and underestimates is much more important than a theat­ the public mind by seeking political gain in rical extravaganza. We are dealing with economics that Ford himself has been simplistic answers. Just reducing federal fundamental economic policy, which preaching so strongly against." Washington Post, October 8, 1975: "As eco­ spending by $28 billion as Ford suggests, does could, if properly designed, be a major nomic policy, both sides of the President's not meet the public's demand that the gov­ force in reducing unemployment and in­ new position are defective. The tax cuts may ernment serve its needs efficiently." flation in what continues to be a troubled make him popular, but they go well beyond Los Angeles Times, October 8, 1975: "In economy. We will enact a responsible tax the stimulus that the country now requires. broad terms ... we believe that Ford is right cut. And we will take a hard look at It would have been enough to continue the in his call for a prudent dose of fiscal stimu­ Government spending through our new present temporary reductions and perhaps lus to the economy ... But the President's procedures for considering the budget. make them permanent. The attempt to cor­ insistence on a formal link between tax cuts ner Congress into a pledge on spending is and a tight rein on spending is a political The President, instead, has tried to merely polemic, and promises to make his re­ gimmick. Democratic leaders in Congress construct a neat morality play mas­ lationship with the Capitol less productive have quite rightly labeled it 'preposterous.' querading as economic policy. But the than ever. . . . The Administration, after all, will not people have seen through the farce, and "As the overture to an election campaign, even present its own version of which spend­ there has been scant applause. this tax program reflects a dismaying de­ ing programs should be cut by how much I insert excerpts from the editorial gree of intellectual confusion, and a growing until January. After that, Congress will pro­ comment at this point in the RECORD. tendency to lunge at big splashy numbers. ceed under its promising new machinery for Octobe1· 29, 1975 CONGRESSIONAL RECORD-HOUSE 34313 budget consideration to assert its own judg­ cavalier disregard for the realities of the con­ S. Broder): "With unemployment over ment on national priorities." gressional budget process-made the entire 8 percent and the economy still functioning Cincinnati Post, October 13, 1975: "What White House exercise little more -than a bla­ far below capacity, this Is no time to take the President really has done is dazzle the tant .political charade. Indeed, as late as the risks with recovery. public with a proposed package to cut taxes previous Friday, administration economic "But that ls precisely what Mr. Ford is and spending that has almost no chance of advisers still were working on a more sensible proposing to do. He is not promising a tax being enacted into law." package involving a simple extension of this cut. Quite the contrary. He is jeopardizing Newark Star Ledger, October 9, 1975: year's cuts, combined with a plea for spend­ an otherwise certain tax cut by threatening " ... Nor is there any fiscal reality in Mr. ing holddowns. 'Sometime that afternoon,' to veto a new tax bill unless it is tied to a Ford's insistence that the proposed $28 btl­ one insider concedes ruefully, 'the political spending ceiling. lion in tax reductions be offset by an equiv­ guys came in and the whole thing exploded.' "That spending ceiling is as artificial as alent cut in federal expenditures. It is a What emerged was a campaign document for a Halloween hobgobliil. Neither Mr. Ford nor contentious position that the President the 1976 election. The President would set any member of his administration has yet should be fully aware is unattainable; there up a straw-man to run against for the bulk stepped forward to explain or justify the is simply no way that such a large amount of next year." magic of the $395 billion number." can be removed from the government budget Newsweek, October 20, 1975 (Paul A. Sam­ Washington Post, October 19, 1975 (Hobart without substantial reductions in essential uelson): "The President's speech had noth­ Rowen): Clearly, the President's program social programs." ing at all to do with getting the country out was pasted together without much·considera­ Boston Globe, October 8, 1975: The Presi­ of the recession and into a more rapid re­ tlo:o. of the economic impact. Even the dent's plan "would tend to perpetuate a covery. It merely launched a controversial politics' could not have been thoroughly sluggish economy and chronic unemploy­ proposal congenial primarily to his Republi­ researched, because-by promising to veto ment. And it threatens a new clash between can adherents, and their right wing at any tax bill unaccompanied by offsetting Congress and the Administration over edu­ that ... spending reductions--the President may have cation, job training, health, the environ­ "Indeed. if Ford insists on a cut in expen­ painted himself into a corner. ment--replete with vetoes and override diture equal to any cut in taxes, the best Wall Street Journal, October 21, 1975 (by fights. That is the stuff of politics, but will time for it would be in a period of too much James P. Gannon): "This confusing pattern the nation really move ahead?" employment, a period of too little unemploy­ has undermined the credibility of Mr. Ford's Chicago Tribune, October 10, 1975: "In ment. For the plain truth is that the Ford economic advisers and spokesmen, and has sum, Mr. Ford's proposal sounds extremely deal would be contractionary on employment cast doubt on the President's consistency attractive, and in theory might work. In and production." and control. It is worth noting that, since the beginning of his administration, Mr. Ford actuality, it means asking a Democratic-con­ National Observer, October 18, 1975 (This has displayed a curious penchant for pro­ trolled Congress to promise that it will Week in Washington, by Mark R. Arnold): posing economic programs with fanfare, and carry out a Republican President's fiscal "In proposing a. dollar-for-dollar reduction then abandoning them •.. policies without knowing what those possi­ in both Federal taxes and Federal spending "The President has a right to change his bllities may involve--and that may be called next year, President Ford seemingly has cho­ mind and adapt his program to changing a practical impossibility. Whatever the bene­ sen the ultimatum route. Although coupling economic conditions, of course. But the rec­ fits might be, Mr. Ford cannot realistically the two issues may be politically appealing. ord of fiip-:flop and zigzag raises questions: expect Congress to sign this blank check. Congress won't play the President's game. Will this month's brainchild be next month's Its refusal to do so may give him a strong And early predictions are that it will be the stepchild?" election issue, but we frankly would prefer President who either backs down or gets the a program with a chance of succeeding." blame for higher taxes.'' This Wall Street Journal article was New York Times, October 17, 1975: The Kansas City Times, October 11, 1975 (Wash­ reprinted in its entirety in the CoNGRES­ President's contention that his fiscal package ington Review, by Joseph A. Lastellc): "The SIONAL RECORD Of October 23, pages would have no significant effect on the econ­ quality of the advice being given Ford by omy in the short run is at best disin­ his advisers also Is subject to question. It 33793 and 33794. genuous. Since his $28 billion in tax cuts was just a year ago that he proposed a. 5 Copies of the full editorials and edi­ would start on Jan. 1-about nine months per cent increase in taxes following the eco­ torial page comments from which the before the spending cuts-what he has real­ nomic summit at the White House that portions above have been excerpted are ly offered is a highly infiationary (or stimula­ dwelled on Inflation while the nation slipped available at the whip's office, Jack tive) fiscal policy for the first part of the into recession and its consequent high un­ McDonald, 5-5604. year-culminating, it may be noted, in the employment. Then Ford scrapped that plan month of the Presidential election. Asked at and shifted to the antirecession temporary his news conference last week whether this bill with tax cuts after working out a. com­ was not an accurate appraisal of the effect promise with Congress. So the package being MAN'S INHUMANITY TO MAN of his plan, Mr. Ford's response was that offered now is subject to suspicion and hoots any time Congress wanted to put a spending of "preposterous" and "unreallstic" by the (Mr. PEPPER asked and was given limit on the last siX months of fiscal 1976, Democratic-controlled Congress.'' permission to extend his remarks at this he would be "right there helping them." New York Times, October 12, 1975 (The point in the RECORD and to include ex­ "This mixture of pol1tical guile, favors to Economic Scene, by Thomas E. Mullaney): traneous matter.> special interests, ideological cant and fiscal "In assessing the Administration's plan, ana­ Mr. PEPPER. Mr. Speaker, the poet irresponsibility merely fortifies the loss of lysts addressed themselves to these basic said, we recall, "Man's inhumanity to confidence of the American people in the questions: Is It feasible? Is all of it neces­ man makes countless millions mourn." capacity of their Government to manage the sary? Would it aid the bumpy economic in­ economy-and their loss of confidence in recovery now underway? Would it be infla­ At a time when there is so much the integrity of Government." tionary? humanity to man is so many parts of the "On all accounts, it seems, the answers world it is exceedingly fitting that the Mr. Speaker, the following comments were generally unsatisfactory. That's why it House of Representatives on April 8, are from editorial and financial page appears to stand about as much chance of 1975 passed a resolution to designate analyses and opinion: survival as a snowball in Hell ... April 24, 1975 as "National Day of New York Daily News, October 9, 1975 "Prof. Walter Heller of the University of Remembrance of Man's Inhumanity to (Capitol Stuff by James Weighart) : "It's Minnesota, who had been chief economic Man." This resolution calls upon the CUT-From Those Folks Who Brought you adviser to the last two Democratic Admin­ President to issue a proclamation calling WIN"- istrations, expressed a rather typical view: "Perhaps the memory of Ford's political " 'It's important to call a spade a spade. upon the people of the United States to loss with the WIN program has caused some The President's plan takes away more than observe such a day for all the victims of of the shrewder Republicans on Capitol H111 it gives. If it were to lead eventually to a genocide, especially those of American to be a bit slow in embracing the President's failure to extend the 1975 tax cuts or a si­ ancestry who succumbed to genocide new lower-taxes and less-spending program. multaneous cut in expenditures, it would perpetrated in 1915. Neither the history As Rep. Sam Steiger (R.-Ariz.) observed at a put a real crimp in the economic recovery.'" nor the memory of men will ever fail to Congressional briefing on the plan by top Washington Post, October 12, 1975 (Hobart administration economic advisers, 'It has the Rowen): "Well, maybe It's clever politics. record this unspeakable tragedy to an awful ring of a used-car merchandizing pro­ Perhaps Mr. Ford will come oft' as the apostle innocent people. I am sorry I had not gram.'" of freedom, and the Democrats wm be typed returned from an official visit to the Evans and Novak, syndicatt>i column, Oc­ as socialistic big spenders who wouldn't give Interparliamentary Union meeting in Sri tober 11, 1975: "Mr. Ford's new fiscal pack­ the money back to the people. Lanka when this resolution was voted age, in fact, is strategy rather than sub­ "But others may see through the whole stance." thing, observing that hefty tax cuts would upon in the House. I would strongly have Baltimore Sun, October 12, 1975 (Perspec­ come Jan. 1, but that the budget-cutting supported it. I hope history will never tive page by Art Pine): "The problem is the a.x wouldn't be swung untU Oct. 1, 1976-too reveal the repetition of such atrocities magnitude and timing of the package's vari­ late to have an impact by Election Day.'' and tragedies. Mr. Speaker, I include a ous components-and the administration's Washington Post, October 15, 1975 (David copy of House Joint Resolution 148, to 34314 ·CONGRESSIONAL RECORD- HOUSE Octobe1· 129, 1975

which I l'eferred, in the RECORD follow­ stitutes a flagrant violation of the no inter­ FoUR FREEDOMS MEAN So MucH To ME ing my remarks. vention doctrine in the internal affairs of (Freedom from fear or want; freedom of other countries, this time the United States. H.J. RES. 148 speech and religion) . And again the question arises: Was there a Resolved by the Senate and House of Castro connection? (By Al Pdce) Representatives of the United States of In one of the most recent acts . . . in the As the Stars and Stripes waves high., unfurled America in Congress a.ssembled., That detention of Patty Hearst with three of her My freedom speaks to all the world. April 24, 1975, is herey designated as comrades ... the question we've been ask­ We fought and won our right to say, "National Day of Reme-mbrance of Man's ing before might very well arise here. we What thoughts are in our hearts each day. Inhumanity to Man", and the President of remember that Patty Hearst's nickname was We're free to work and to succeed the United States is authorized and re­ "Tania", the famous guerrilla woman who To receive our nation's help in need. quested to issue a proclamation calling upon was "Che" Guevara's lover, who was killed tn No one dares to call me odd the people of the United States to observe Bolivia. I'm free to pray to my own God. such day as a day of remembrance for all We must recall that in one of the tapes If my leaders act unwise the victims of genocide, especially those of sent by Patty Hearst to the news media and I can speak and criticize. Armenian ancestry who succumbed to the broadcasted by CBS network she spoke sev­ My spirit soars in liberty genocide .perpetrated in 1915, and in whose eral words in Spanish, I recognized those At what my land has given me. memory this date is commemorated by all words immediately because she repeated the Lawmakers know they're not beyond Armenians and their friends throughout the famous Castro's slogan: "Fatherland or The laws to which we all respond, world. Death, we shall win". And though we're short on history When she was arrested in San Francisco ''Unique" is our democracy. she had those words written down somewhere Jt'our freedoms mean so much to me, THE CASTRO CONNECTION in the room where she was hiding. She be­ My heart is fi11ed with ecstacy with Patty Hearst was Wendy Yoshimura, 30 * Mr. PEPPE_ft. Mr. Speaker, you know, I years old and accused by the federal author­ am sure, of my continuing concern over ities of attempting to blow up the ROTC EN.OORSING PRESIDENT FORD'S the poisonous presence of Castro com­ building in Berkeley. PLAN WITH RESPECT TO NEW munism on our Caribbean doorstep. In It was informed that the Yoshimura YORK CITY this connection I wish to call to the at­ woman was in Cuba for a whole summer along with the so-called "Venceremos Bri­ (Mr. ROUSSELOT asked and was tention of our colleagues a recent tele­ gade" cutting sugar cane for Castro's regime. vision editorial by Dr. Manolo Reyes, And again the question arises: Is there a given permission to extend his remarks Latin news editor for television station Castro connection? at this point in the RECORD and to in­ WTVJ in Miami, entitled "The Castro In the last times there has been much in­ clude extraneous matter.) Connection," I include the text of the formation and speculations about John F. Mr. ROUSSELOT. Mr. Speaker, I want ·editorial at this point in the REcORD: Kennedy's tragic death. The Warren Com­ to take this opportunity to express my mission said there was only one assassin: Lee THE CASTRO CoNNECTION satisfaction with the plan proposed today Harvey Oswald. Nevertheless, Oswald be­ by President Ford for revising the Fed­ There is a very interesting and focal point longed to the Fair Play Committee for Cuba that needs to be studied, analyzed and in­ and was an active member of that organiza­ eral bankruptcy laws to enable New York vestigated in different parts of the world. tion. Several months before the Kennedy as­ City to achieve an arrangementt with it It could be called The Castro Connection. sassination Oswald wanted to go to the creditors. At this stage I am sure that The Castro Soviet Union through Cuba. For that purpose This will be an excellent example of Connection is being studied and analyzed by he went to Mexico. Was there a Castro con­ what can be accomplished when Con­ national and international observers, by those nection in his plans? gress and the Executive act in a care­ who study foreign policy and fundamentally This is the same question many people ask ful, deliberate, and rational manner, by those authorities who investigate crimes. and with a detente or without one; it must be in Those in favor of the detente even if they given an answer ... so that the real truth rather than an atmosphere of hys­ act slow, deaf and blind, preaching against and justice be disclosed guaranteeing the teria. Too often we consider proposals any disturbances have to realize that The peace and security of countries. which are labeled ''emergency" so that Castro Connection will spring out any min­ we will suspend our normal judgment. ute now with all its intensity and with great Rather than consider the true merits, risk for the security and peace of the nations we are invited to plead temporary in­ of the Western Hemisphere. WHAT FREEDOM MEANS sanity and to say that we are not re­ In the past, Francisco Camaano Deno, the President has established an orderly Dominican Republic air force immediately Mr. PEPPER. Mr. Speaker, the Bicen­ procedure for dealing with the inevitable took action and Caamano died, and his group tennial, our Nation's 200th birthday, 1s default, and you will see that chaos will dissolved. But the information released was almost upon us. As such, we as a nation not result. On the contrary, those city, that on several occasions Camaano was in of diverse races, religions and cultures State, and Federal officials who have training in Oriente province in Cuba. It is are now afforded the opportunity tore­ almost impossible that such a well known believed in and practiced fiscal responsi­ person as Camaano would disappear from flect upon our rich heritage and the bility can now take heart and reap in the free world and could not be seen except unique offerings of many individuals in the marketplace the rewards of sound if he had hidden behind the Iron Curtain. the formation and development of management. The question now is: was there a Castro Amelica's history. This is a national cele­ Meanwhile, those who would ignore Connection? bration-a celebration of the past in the implications of the New York City The chief of the Portuguese navy, a well which we rededicate ourselves to those situation for the Federal Government known man for his leftist activities, visited democratic ideals which have helped this should note the President's words. Cuba, in the middle of the turmoil that has Nation to grow and to prosper. been whipping his country. Fidel Castro made If we go on spending more than we have, several statements in favor of the com­ Therefore, in the spirit of the Bicen­ providing more benefits and services than munists in Portugal and the question arises. tennial, and in commemoration of our we can pay for, then a day of reckoning will Was there a Castro Connection? Nation's ideals. I am honored to submit come to Washington and the whole country Several weeks ago the assistant Secretary a beautiful poem written by Mr. Al Price, just as it has to New York. for Latinamerican affairs in Washington, a Florida resident. Mr. Price was awarded William Rogers, said they would observe a plaque by the Four Freedoms Civic When that day of reckoning comes, who Cuba's good faith in their attitude towards Club in winning fi1·st prize in their Bicen­ wlll bail out the United States of America'? the Puerto Rican case. Three days later tennial contest for a poem on "What Castro made a poisonous attack against the Freedom Means Me." I believe all will United States government accusing him of to GENERAL LEAVE oppressing Puerto Rico. And he even formed enjoy and profit from the stirring senti­ an International Congress in favor of Puerto ments expressed in this poem. Hence, I Mr. BAUMAN. Mr. Speaker, I ask Rico's Independence where many communist include, Mr. Speaker, Mr. Price's poem unanimous consent that all Members personalities attended. The act in itself Jon- in the RECORD at this point: may have 5 legislative days in which to October 29, 1975 CONGRESSIONAL RECORD- HOUSE 34315 revise and extend their remarks on the enses under the medicaid By Mr. STEED. TER, Mr. BUTLER, Mr. DEL CLAWSON, program, to provide expanded Federal fund­ H.J. Res. 710. Joint resolution to authorize :Mr. DE LA GARZA, Mr. DIGGS, Mr. ECK­ ing for congregate housing !or the displaced and direct the Indian Claims Commission HARDT, Mr. EVINS of Tennessee, Mr. and the elderly, and !or other purposes; to determine the amount of a claim of the HIGHTOWER, Mr. JARMAN, Mr. JONES jointly to the Committees on Ways and Seminole Nation of Oklahoma and to render of Oklahoma, Mr. MAHON, Mr. MAR­ Means, and Interstate and Foreign final judgment thereon; to the Committee TIN, Mr. MOORE, Mr. MYERS O! Penn­ Commerce. on Interior and Insular Affairs. sylvania, Mr. PASSMAN, Mr. ROBERTS, By Mr. LONG of Maryland: By 1\fr. LATTA (for himself, Mr. DuN­ Mr. RUNNELS, Mr. SCHULZE, Mr. SISK, H.R. 10423. A bill to amend the Internal CAN of Tennessee, li.Ir. YoUNG of Ms. SMITH of Nebraska, Mr. TEAGUE, Revenue Code of 1954 to provide for the pay­ Florida, Mr. CLEVELAND, Mr. BRoY­ Mr. CHARLES H. 'WILSON of California, ment of interest at a rate of 5 percent on HILL, Mr. TREEN, Mr. LOTT, Mr. Mr. RINALDO, and Ml". TAYLOR Of excess amounts withheld from inidviduals' SNYDER, Mr. GILMAN, and l\11". Missouri): BUCHANAN); H. Res. 834. Resolution to condemn the wages; to the Committee on Ways and United Nations Third Committee resolution Means. H. Con. Res. 463. Concurrent resolution equating Zionism with racism; to the Com­ B y ..:Ir. :-.IONTGOMERY: to declare that total Federal budget outlays mittee on International Relations. H.R. 10424. A bill to amend chapter 11 of for fiscal year 1977 shall not exceed $395 By Mr. O'NEILL (for himself, Mr. CoN­ title 38, United States Code, to authorize billion; to the Committee on the Budget. YERS, Mr. KAzEN, l.V!r. AUCOIN, Mr. cost-of-living adjustment of rates of disa­ By Mr. DRINAN: BENNETT, Mr. FARY, :Mr. JEFFORDS. bility compensation; to the Committee on H. Res. 829. Resolution expressing dis­ Mr. THORNTON, and :Mr. BURLESON Veterans' Affairs. approval of the deferral of budget authority of Texas): By Mr. MOSHER (for himself, Mr. reported by the President on October 23; to H. Res. 835. Resolution to condemn the HAWKINS, and Mr. MAGUIRE): the Committee on Appropriations. United Nations Third Committee resolution H.R. 10425. A bill to require in all cases By Mr. KEMP (for himself, Mr. equating Zionism with ;racism; to the Com­ com·t orders for the interception of com­ o·NEILL, Mr. RHODES, Mr. ARCHER, mittee on International Relations. munications by electronic and other devices, Mr. .A.BDNOR, Mr. ADDABBO, Mr. BADIL­ for the entering of any residence, for the LO, Mr. BELL, Mr. BENNETT, 11.1r. Bo­ PRIVATE BILLS AND RESOLUTIONS opening of any mail, !or the inspection or LAND, Mr. BROYHILL, Mr. BURGENER, procurement of certain records, and for .£ fr. BURKE of Florida, Mr. BYRON, Mr. Under clause 1 of ru1e XXII, private other purposes: to the Committee on tile CEDERBERG, Mr. CHAPPELL, Mr. COCH­ bills and resolutions were introduced and Judiciary. RAN, Mr. CoHEN, Mr. CoLLINS of severally referred as follows: October 29, 1975 EXTENSIONS OF REMARKS 34317

By Mr. DAN DANIEL: other postal costs reasonably assignable to "(f) No recommended decision trans­ H.R. 10433. A bill for the relief of Ml·s. J. such class or type;' " mitted by the Commission under this sec­ Walter Jones; to the Committee on Public On page 22, line 12, after the words " 'rates' tion may include a rate increase for any Works and Transportation. and" insert the following new language: "by class of mall that exceeds the average per­ By Mr. HEBERT: amending paragraph ( 1) to read as follows: cent rise in the price index for the 12-month H.R. 10434. A b111 for the relief of Carlos " ( 1) the revenue received from rates for period immediately preceding the month Montenegro Gorbitz, M.D., Mrs. Gorbltz, mail under former sections 4358, 4452 (b) prior to the month in which the request for and their 2-year-old son; to the Committee and (c), and 4554 (b) and (c) shall not, on a recommended decision was submitted to on the Judiciary. and after the first day of the sixteenth year the Commission.". following the effective date of the first rate (c) Section 3625 (b) of title 39, United decision applicable to those classes and kinds, States Code, is amended by adding the fol­ PETITIONS, ETC. exceed those proposed changes in the rates lowing sentence at the end thereof: "No deci­ of postage, and in fees for postal service, re­ sion of the Governors under this section may Under clause 1 of rule XXII, petitions quested on September 18, 1975, by the United include a rate increase for any class of mail and papers were laid on the Clerk's desk States Postal Service in a request bearing that exceeds the average percent rise in the and referred as follows: Postal Rate Commission Docket Number R76- price index for the 12-month period im­ 277. By the SPEAKER: Petition of Mrs. 1, for those classes of mail. mediately preceding the month prior to the Jeanne N. Lyons, West Covina, Calif., and "Not later than thirty days after the con­ month in which the proposal for a recom­ others, relative to the United Nations; to clusion of any rate case involving these mended decision was submitted to the Postal the Committee on International Relations. classes of mail, the Postal Service shall re­ Rate Commission under section 3622 of this port to the appropriate Committees of the title.". 278. Also, petition of John F. McManus, House and the Senate an estimate of the Belmont, Mass., and others, relative to the (d) Section 102 of title 39, United States revenue to be obtained by application of Code, is amended- United Nations; to the Committee on Inter­ this subsection and its appropriate separate national Relations. (1) by striking the word "and" at the rate schedule and an estimate of the revenue end of subparagraph (2); which would be obtained if Section 3622 were applicable to these classes of mail, for the (2) by striking the period at the end of AMENDMENTS succeeding twelve month period; and". subparagraph (3) and inserting"; and"; and Under clause 6 of rule XXIII, pro­ On page 22, line 12, strike the word "there­ (3) by adding the following subparagraph: posed amendments were submitted as of" and insert in lieu of this word the words " ( 4} 'price index' means the Consumer "of section 3626", and" Price Index (all items-United States city follows: Strike the language from page 26, line 24, average) published monthly by the Bureau H.R.8603 through page 32, line 26. of Labor Statistics.". By Mrs. SCHROEDER: By Mr. SIMON: (e) The first sentence of section 3622(a) On page 22, line 3, after the section des­ Add the following new section: of title 39, United States Code, is amended ignation " ( 9) " insert the designation " (a) "; SEC. ( ) (a) The second sentence of sec­ by striking out "From time to time:• and in­ and tion 3622(a) of title 39, United States Code, serting the following: "From time to time, On page 22, after line 9, insert the follow­ is amended to read as follows: "The Postal ing: but no more frequently than o-nce during Service may submit such proposals for rate any 12-month period,". "(b) Section 3622 (b) (3) is amended to adjustments as it deems suitable, except that (f) Notwithstanding any other law, the read as follows: "(3) the requirement that no such proposal may include a rate increase each class of mail or type of mail service for any class of mall that exceeds the aver­ amendments made by subsections (b), (c) bear the direct and indirect postal costs at­ age percent rise in the price index for the and (d) of this section shall apply to the tributable to that class of mail or type (in­ 12-month period immediately preceding the temporary and permanent rates established cluding the costs caused by variability with month prior to the month in which such pursuant to the request of the United States volume, and all of the costs caused by the proposal is submitted.". Postal Service for a recommended decision collection, transportation, processing, stor­ (b) Section 3624 of title 39, United States by the United States Postal Rate Commis­ ing, and delivery of each class of mail or type Code, is amended by adding the following sion dated September 18, 1975, bearing Postal of mall service) , plus that portion of all new subsection: Rate Commission Docket Number R76-1.

EXTENSIONS OF REMARKS LITTLE JOURNEYS TO LANDS OF introductory statement to this worthy his review of historical data and counsel, to LIVING FAITHS publication be printed in the RECORD. Marion Hall McTyre for her service of typ­ There being no objection, the state- · ing, to Robert Lane and Joseph Holman of Belk-Berry's for their aid, to the Bicenten­ ment was ordered to be printed in the nial Heritage Committee, the Residents of HON. JESSE A. HELMS RECORD, as follows: Old Wilmington, the Historic Wilmington OF NORTH CAROLLNA INTRODUCTION Foundation, the Lower Cape Fear Historical IN THE SENATE OF THE UNITED STATES (By Dr. Martin M. Weltz) Society and other groups for their encourage­ Wednesday, October 29, 1975 We offer this booklet as a spiritual "sou­ ment and endorsement. venir" for our "Little Journeys to Lands of Democracy, "a form of government in Mr. HELMS. Mr. President, a distin­ Living Faiths" which we share together in a which the supreme power is retained by the guished citizen of Wilmington, N.C., pre-Thanksgiving mood of Faith and Free­ people and exercised by them directly or Rabbi Martin M. Weitz, has prepared a dom, Religion and Democracy, by visiting a indirectly," has helped Religion in America booklet for 12 congregations in historic dozen of our sanctuaries in Historic Wilming­ in that it has freed Religion from the State. Wilmington, which calls to our attention ton--catholic, Protestant, Jewish-each of It has helped increase spiritual values in the religious foundations of the American which is at least 100 years old as a congre­ labors of religious organizations because of gation. Many congregations are much older the separation of church and state. It has republic. while some are younger, although some of afforded equality of status to all religions Dr. Weitz is resident lecturer in Judaic their sanctuaries may equal the life-span by a freedom from state salaries and super­ Studies at the University of North Caro­ of the congregations while others are young­ vision. It has increased the content of good­ lina in Wilmington, and is presently serv­ er. All of them participate in the motif of will by "making America safe for differ­ ing as Chairman of the Bicentennial the Bicentennial on November 9 and 16, and ences" in religion and culture, differences Heritage Committee-1976-for New recall the lifeline of our heritage from the upon which America depends for Democracy Hanover County. Sons of Jacob to the Pilgrim Fathers and itself. The booklet will be distributed as beyond-in the spirit of Thanksgiving in our Religion ... "man's quest for values as part of a pre-Thanksgiving Day event own American landscape. lofty as love of Diety and as ample as needs We express profound appreciation to all of humanity" ... has aided Democracy in to strengthen religious understanding ministers of these historic congregations as among the Catholic, Protestant, and the following ways: ( 1) Religious principles cosponsors of our venture, whose brief his­ have prompted all the great migration Jewish congregations in the Wilmington tories are included in these pages, together from "Plymouth Rock to Ellis Island". (2) area. with the sketches by our art-collaborator, It has yielded over 60,000,000 "refugees" or Mr. President, I express my gratitude Ronald Williams. To him we owe special "Pilgrims". (3) Moral forces in America, to all of those in Wilmington who have thanks for his "compositions", and other from the Bibliocracy of the Purltans to the made this booklet possible, and ask helpful labors. We tender our gratitude to latest messages and actions of our Presi­ unanimous consent that Dr. Weitz' Bill Reaves of the Wilmington Star-News for dents, have derived from religious roots.