October 7, 1987 EXTENSIONS OF REMARKS 26931 EXTENSIONS OF REMARKS RECOGNITION OF THE CHIEF of turning sour; if the farm economy weak­ study commissioned by Mr. Buegler, which EXECUTIVE OFFICER OF THE ens, that number would soar. hasn't been released, says that in many ST. PAUL DISTRICT OF FARM Raging around Mr. Buegler is a storm over cases loan officers were under such tight CREDIT, MR. LARRY D. how to revive the ailing farmer-owned Farm deadlines that they didn't have time to get BUEGLER Credit System, which operates banks across appraisals and income statements. A midlev­ the country. The system-federally char­ el official who is quitting after 17 years tered but not financed or insured by the complains that a lot of mistakes were made U.S.-has had $4.8 billion in losses over the because his staff was given weeks to restruc­ HON. BRUCE F. VENTO past 2¥2 years. Federal regulators expect it ture loans that required months of research OF to have an additional $1.2 billion in losses and negotiation. for the last half of this year. The system IN THE HOUSE OF REPRESENTATIVES wants a government bailout of as much as "There were a lot of seat-of-the-pants Wednesday, October 7, 1987 $6 billion, and Mr. Buegler's approach is judgments," says Mr. Lins, who was also one getting attention as one of the least expen­ of the study's authors. Mr. VENTO. Mr. Speaker, it is indeed fitting sive alternatives. The pressure isn't easing. Bad loans keep that yesterday when the House debated the "He has raised a lot of eyebrows," says sprouting. The district is scrambling to re­ merits of H.R. 3030, the Agricultural Credit Act Neil Harl, a farm economist at Iowa State structure an additional $500 million in loans of 1987, that the accomplishments of Larry D. University. Adds U.S. Rep. Steven Gunder­ by the end of this year and anticipates more Buegler, the Chief executive officer of the St. son, a Wisconsin Republican: "He is not the next year. Paul District of the Farm Credit System, were most popular man in Farm Credit Services. He is much more popular in Congress." Mr. And Mr. Buegler has yet to figure out how highlighted in the Wall Street Journal. Mr. Buegler's strategy solves a political dilem­ to rebuild loan business at a time when few Buegler has shown commendable foresight, ma: How to clean up Farm Credit without farmers are willing to go deeper into debt; ability and courage in turning around the per­ forcing more farmers out of business. more are turning to commercial banks and the lower interest rates they offer. He even­ formance of the St. Paul district and I would REPUTATION FOR TURNAROUNDS like to share this article with my colleagues. tually wants to offer farmers mutual funds, A slow-talking Minnesotan who unwinds estate planning and brokerage services. [From the Wall Street Journal, Oct. 6, 19871 by taking Las Vegas gambling trips-"! have never gambled with anyone else's money," Mr. Buegler also has made peace with PLANTING SEEDS OF DEBT RELIEF FOR some of the district's traditional adversaries. FARMERS he hastens to add-Mr. Buegler was consid­ ered the ideal candidate to take over the St. Last summer, he had breakfast with James Paul district. He was an outsider to the M. Corum, a Minnesota lawyer who repre­ ST. PAUL. Minn.-By all rights, Ruben Farm Credit System-something federal sents farmers in disputes with Farm Credit Maisel should have lost his farm last year. regulators pushed for. He brought a flock of Services. "It was the first time that anyone For two years, he hadn't paid his biggest ideas from commercial banking, where he over there has drawn me out," Mr. Corum lender, the Farm Credit Services in St. Paul, had built a reputation for turning around says. and he didn't have the money to start ailing banks, generally by trimming staff As a condition of any government bailout, paying anytime soon. and courting clients. Congress will probably demand sweeping But the threat of foreclosure evaporated At the Farm Credit district, he decided cuts in the Farm Credit System's bloated after a banker named Larry D. Buegler took quickly that he had to slash the size of the bureaucracy. In a pre-emptive move. Mr. over the St. Paul district, one of the weakest loans owed by farmers in default, often by writing them down to the value of the land Buegler is negotiating a merger with the in the Farm Credit System, and put in place Omaha, Neb., district. It isn't certain that a radical plan. The strategy: restructure and stretching out payment terms. The move is pumping money into the coffers; he will get the top job, but he is likely to half of its $1.3 billion portfolio of bad loans remain a key player. in six months. before the revamping, so many farmers were paying their loans late that the district "Not many people get an opportunity to One-third of Mr. Maisel's debt was forgiv­ was losing $480,000 a day just paying the walk into an institution that had lost a bil­ en and his interest rate halved to 8%. He'll bonds floated to make the loans. lion dollars," he says. "It was an opportuni­ start making payments again in January. What's more, the traditional solution­ ty to look good." "If Larry Buegler hadn't come in, I would foreclosing on bad loans-wasn't working have had to file bankruptcy," he says. because land values had fallen to a fraction Mr. Maisel is one of a legion of Midwest of the loans they backed, says Dave Lins, a farmers plucked from the brink of foreclo­ University of Illinois professor. Now the dis­ A NATION IN DECLINE? sure by Mr. Buegler, the 50-year-old presi­ trict says it will come out ahead even if one­ dent and chief executive of the St. Paul dis­ third of the reworked loans fail again after trict, which covers four states. Regulators two years. Meanwhile, getting farmers HON. FORTNEY H. (PETE) STARK and bankers say Mr. Buegler, who left a paying again-even if the amount is smaller fast-track banking career with Norwest than what they should have been paying­ OF CALIFORNIA Corp. of Minneapolis, has restructured the produced a $7 million second-quarter profit IN THE HOUSE OF REPRESENTATIVES loans of more borrowers in less time than for the district, compared with a $210.7 mil­ any private U.S. banker they know of­ lion year-earlier loss. Wednesday, October 7, 1987 about 5,000 farmers holding approximately "I personally have a problem with restruc­ Mr. STARK. Mr. Speaker, forewarned is $709 million of loans. turing loans," says John Shaffer, a farmer forearmed. A MODEL FOR THE SYSTEM and a director of a Farm Credit office in In recent years, Americans have come to In Congress, some are calling Mr. Worthington, Minn. "But the old ways don't Buegler's strategy a model for how the work anymore." accept incompetence, stupidity, and dishones­ Farm Credit System, the nation's largest Yet Mr. Buegler's strategy involves big ty from their government and leaders. It farm lender, should mend itself. But it has risks. For one, it almost encourages farmers doesn't have to be that way. We need to take scared just as many; the plan involves enor­ to default: It is an easy way to get big parts of their debt forgiven. Others worry that it a good, hard look at where we're headed­ mous risks that are driving away creditwor­ and change course as fast as we can. thy borrowers and may only postpone the only postpones the problem, that more day when the district must face up to its farmers are destined to fail in any event. I recommend the following essay by the bad loans. Mr. Buegler's staff calculates TIGHT DEADLINES eminent American historian Barbara W. Tuch­ that each of the 5,152 loans it rescheduled Such concerns are fueled by talk that Mr. man. It should wake us up. in the first quarter has a one-in-five chance Buegler's loan restructurings were hasty. A The essay follows:

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 26932 EXTENSIONS OF REMARKS October 7, 1987 [From the New York Times Magazine, Sept. force. Consequently, the Stark could not or of the Spanish conquistadors in 1519. He be­ 20, 1987] did not defend itself. stowed gifts on them, even received them in A NATION IN DECLINE? THE AUTHOR FEARS A In the case of the Stark, no one was tried his court. His downfall and death soon fol­ DETERIORATING ETHIC IN THE U.S. WITH by court-martial to establish a clear verdict lowed at their hands. INCOMPETENCE AND INEFFICIENCY THREATEN­ of responsibility. In 1756, in an analagous Lawlessness often accompanies incompe­ ING SURVIVAL situation, the Brjtish Navy sent an inad­ tence. When the President authorized the equate and poorly manned fleet to fight off arms sale to Iran without informing Con­ a French attack on Minorca. When the com­ gress, he may have violated the Arms Decline of a nation or a society is a pro­ mander, Adm. John Byng, lost the island Export Control Act. According to that law, vocative historical problem. In Rome, it is through a half-hearted defense, he was in a transaction involving the export of associated with external pressure from the tried and condemned for not doing his arms by a private manufacturer, the State barbarians and the inability of the empire's utmost, and then executed by firing squad. I Department has the authority to decide agricultural rim to offer firm resistance. In am not advocating that we imitate the pro­ whether the release is advisable and politi­ the ancient Greek cities of Asia Minor, it cedure-the exaggerated penalty did more cally suitable. If the arms have become part can be traced to the silting up of harbors, to harm the Royal Navy than six Byngs on of stock in the possession of closing them to access by sea. In the Aztec the bridge. Nevertheless, persons in posi­ the Defense Department, as were the TOW empire of Mexico it was the invasion of tions of command, military or civil, must be missiles that found their way to Iran, the ruthless Europeans. In China, it is a long held to standards of competent performance export requires an authorizing document story. In the United States, who knows? One cer­ if our ships are to hold the sea and our poli­ signed by the Secretary of Defense or an of­ tainly feels a deteriorating ethic in many cies not be held to ridicule. ficer of his department. spheres. Our Government is beset by incom­ In the Iran-contra affair, the most egre­ The act requires that Congress be notified petence; our officials display an inability to gious case of incompetence, leaving us in of significant sales of arms abroad, and that execute policy efficiently or with the law. shocked wonderment, is the sale and deliv­ arms not be sold to a customer for transfer The policy-making apparatus itself appears ery of arms to Iran without obtaining ful­ to a third party. Thus, in authorizing the to have broken down, with the chain of fillment of their side of the bargain-which sale in hi.s finding of Jan. 17, 1986, President command in the Government's executive was, according to Rear Adm. John M. Poin­ Reagan twice ignored that law by failing to branch reduced to a meaningless flow chart. dexter, a straight trade of arms for hos­ notify Congress and by using Israel for the Such incoherence and disarray in policy and tages. At first, only one hostage was re­ transfer to Iran. This must have been done its implementation result, in tum, from the leased, then two more trickled out; but then consciously-unless he is given to signing public's unthinking acceptance of image three more were seized and are still being documents with his eyes closed. over substance in its choice of Government held. Our arms bought us a total of one re­ Lawlessness appears again as a twin of in­ officers. covered hostage. competence in the Reagan Administration's Incompetence is a companion of decline · The mental incompetence of our self-ap­ mining of Nicaraguan waters in 1984, a bel­ because decline has no goal; when people do pointed operators was clear. In a situation ligerent act against a country with which we not care and have no goal in view they do of their own creation, these agents of covert were not and are not at war, ordered by our not function at their utmost. They grow lax operations entered an antique land with no Government as a whole, not by the out­ and accept defeat. They will go on produc­ more serious thought than tourists off a riders of the National Security Council. ing babies for an ever-increasing population cruise ship, with no knowledge of the lan­ What was gained? A hash of our Good because that is easy, but they will not con­ guage or the culture of the Levant, no ac­ Neighbor policy and greater turmoil than trol the poisoning of air and water for pres­ quaintance with the ancient skills of the before in Central America-hardly the ervation of the national health. bazaar, unprepared to do anything but record of a competent government. One of the members of the Congressional botch the job. I quite understand and ap­ Pundits talk about the need for legislation panel investigating the Iran-contra affair prove President Reagan's desire to bring the to tighten our rules of conduct within the stated that the chief issue to emerge from hostages out, for their sake and for his. But Government, to prevent any recurrence of the hearings was "incompetency in govern­ why on earth did his agents, knowing his ur­ an aberration like the Iran-contra case. But ment." I entirely agree with him, and had gency and informed that their intermediary, all the rules are already in place. What is been thinking the same thing myself. I Manucher Ghorbanifar, was a liar and unre­ missing is compliance. You cannot pass a define incompetence as sloppy and ragged liable, not require some down payment, a law, it has been said, to stop people from performance that ends in unwanted result. hostage on the table, so to speak, or some breaking the law. Competence, the obverse, is the ability to do evidence of good faith in the bargain, before Next we have the extraordinary spectacle work expertly, neatly and correctly without delivering the arms? of the American Government exerting dip­ foolish mistakes. Unaware or unconcerned, President lomatic pressure on friendly nations not to Incompetence can be of two kinds: first, Reagan benignly kept these off-the-reserva­ sell arms to Iran while we were simulta­ poor performance, the inability to accom­ tion adventurers in position and sanctioned neously sending official American envoys­ plish a given task without making a mess of their exploits. With no one actively in Robert C. McFarlane and Oliver L. North­ it, like a person who washes the dishes and charge, the National Security Council ran to Teheran to negotiate just such an arms leaves them greasy; and second, poor think­ wild in support of the contras, in the name sale by ourselves, for the sake of improved ing-also known as stupidity-when a of "patriotism." They might just as well "dialogue" with Iran and for release of the person adheres inflexibly to preconceived have been bombing abortion clinics and call­ hostages. Is this coherent government? notions and fails to discern a meaningful ing it "patriotism," because abortion was The open expression of divided opinion pattern in facts or circumstances that stare something the President was known to among citizens is the virtue of our democra­ him in the face, and hence fails to act sensi­ oppose. cy; the divided policy to which it may lead is bly in relation to them. This was the kind of Reagan was the security council's chief, the hazard. Because of the divisions, agents incompetence that Neville Chamberlain but his interest in the position was lackadai­ of Government take it upon themselves to took along with his umbrella to face Hitler sical, and he apparently was oblivious to its act independently, with a quite astonishing at Munich. Both kinds will be present in a responsibilities. That may have been due to inattention to ordinary lines of command, society in decline. age. When a person reaches 70 or 75, conse­ despite all their loyal readiness to do a / And massive incompetence of both kinds quences seem less important, and someone headstand if ordered and salute smartly in can be seen clearly in the case of the frigate carrying heavy responsibilities will have a response, an athletic trick when both hands Stark. After being warned, the ship could tendency to let things go, in the comforta­ are braced on the floor. not manage owed to the mental incompetence of the De­ to be in Washington." This stays with me as can only be labeled pathetic-for men in fense Department staff at home, which dis­ the single most memorable remark of the their position. patched to the Persian Gulf a frigate not hearings. The most outspoken action the two could designed for independent battle duty in Reagan's attitude resembles to some have taken would have been simply to waters where active self-defense could be extent the easygoing acceptance by the refuse to give their departments' license for expected, but as a component of a carrier Aztec emperor Montezuma of the invasion the sale of arms and, upon this refusal, to October 7, 1987 EXTENSIONS OF REMARKS 26933 resign-as former Secretary of State Cyrus a little too slick, the ideal young American from our society, as if it had floated away R. Vance did over the attempted rescue of activist. An attractive figure, he could not on a shadowy night after the last World the earlier hostages in Iran, as British For­ fail to conquer the viewers. War. So remote is the concept that even to eign Secretary Anthony Eden did in 1938 But the reality underneath North's heroic speak of right and wrong marks one to the over Chamberlain's rapprochement to Fas­ exterior is that of a meddlesome, overgrown younger generation as old-fashioned, reac­ cist Italy. Boy Scout with streaks of megalomania, tionary and out of touch. Ministerial resignation, renouncing the whose activities, rather less than heroic, I choose that war as the turning point in important scream of a motorcycle police caused more trouble for his country than public morality. It is my belief that the Nazi escort and accepting exile from the golden did all of Nixon's "CREEP." The "Ollie­ years have been underrated as a milestone circle of insiders, is a difficult and infre­ mania" phenomenon-which now reaches in history marking the onset of a continuing quent choice. Secretary Shultz says he of­ from Oliver North T-shirts to clubs promot­ period of interpersonal violence in the 20th fered his resignation three times to the ing North for President-demonstrates a century. Comparable crimes have been President, but in terms that could not have distressing popular development that I con­ known in other times, although not with been very firm or convincing, for he is still sider the main point of the Iran affair, quite the same deliberate, officially pursued here. He based his desire to quit not on any deeper than the issue of incompetence in purpose. So much evil was perpetrated by principle of policy, but because he was cut government. It is the public's acceptance of the Germans and callously accepted by our out of· decision-making and kept unin­ the pictured image without regard to the re­ own and other nations that harm done to formed, was being deceived by the White ality underneath. fellow human beings began to appear House staff and came to feel "a sense of es­ The problem is serious. It has caused us to normal, and there was a consequent failure trangement" from the White House and put in the Presidency a person who appears to regard wrongdoing in general as out of from associates at the National Security likable and avuncular on the screen but is bounds and punishable. Killing and mean­ Council. As the State Department's chief, not otherwise equipped for the White ingless mass murder without affect, as the knowing he was being misinformed, surely House. psychologists say, and brutality in unspeak­ Shultz should have exerted a stronger hand I need not say that this is the result of a able terms have become too frequent occur­ ty. the ill and lonely, but the degree to which it rences in contemporary life. The failure by Weinberger and Shultz to has impaired the brain cells of the general Whether a national decline has ever been say anything publicly of their disapproval population has not been measured. initiated by a habit of violence would re­ of Reagan's signed "finding" approving the A visual culture has important implica­ quire a lifetime of study to obtain the evi­ arms sale seems to me a disillusioning indi­ tions for government. The subjects of the dence. I think a good case can be made for cation of their independent judgment as Bourbon monarchy were so overcome by the the Ottoman Turks, after their conquest of Cabinet officers. They are, or should be, ad­ mystique of the court-curled wigs and ele­ Constantinople in 1453. Some 400 years visers to, not minions of the President. "My gancies-that they allowed the Bourbons to after that victory, the once-all-powerful country right or wrong" has a certain nobili­ reign in decadence until revolution became Ottoman empire, mired in an orgy of atroc­ ty of sentiment, but "our President right or inevitable. Today, television has become our ities in Bulgaria, had become the "Sick Man wrong" signals the collapse of constitutional monarch. It determines more and more our of Europe" and had earned Gladstone's government. choice of candidates for office and the per­ famous peroration

91 -059 0 -89-32 (Pt. 19) 26934 EXTENSIONS OF REMARKS October 7, 1987 that the American people, in the era of tele­ Patrick Carroii-Abbing, a man who has made "During the war when I was involved in the vision, with the heavy hand of advertising many outstanding contributions to world underground and needed helpers, I turned exerted upon them from the cradle, are not peace. It is my pleasure to announce that I to the young people," he said. "I came away now very smart in their political under­ have nominated Reverend Monsignor Carroii­ from this experience with a new vision of standing. What is needed-and God knows youth." Beginning in 1943 he recruited how it may be achieved-is more political Abbing as a candidate for the Nobel Peace young volunteers to aid war refugees. Ma.tly sense in the American citizen. Prize. I respectfully submit my letter of nomi­ of these youths were the children of Italian One improvement would be to prohibit nation to the CONGRESSIONAL RECORD. aristocrats, but they quickly became accus­ packaged 30-second spots on television by Monsignor Carroii-Abbing's major accom­ tomed to their situation, and demonstrated political candidates. We should permit only plishment has been the founding of the Boys' their selflessness, maturity and quick ac­ live, spontaneous appearances of a mini­ Towns, institutions established in order to help ceptance of hardships. mum duration of two minutes, to allow us shape the lives of thousands of abandoned After the war, the Monsignor set up na­ more realistic ideas of the candidates. children after World War II. His selflessness tionwide medical and relief efforts. It was This would be only a tiny beginning, and toward both children and adults has stretched the orphaned children of the war who at­ much more must be done to put sense into tracted his attention the most. "There were the electorate. We have to recognize that far beyond what most men and women give in their lifetimes. street boys everywhere, shining shoes, sur­ where the buck stops in this crazy Iran­ reptitiously holding out packs of stolen contra affair is here on the doorstep of the Mr. Speaker, I ask that this body recognize American cigarettes, leading drunken sol­ American people. Somehow, we must learn Monsignor Carroii-Abbing's unceasing activity diers by the hand up ill-famed alleyways, to do better, if more and perhaps more dan­ on behalf of the suffering and his many years tendering the photos of girls who were up gerous mischief is not to revisit us. of dedicated service to children throug~out for sale," he wrote. "Ragged, dirty, emaciat­ A peculiar vacuum exists in American the world and join me in wishing him luck ed, brutalized children, whose own indomi­ public opinion: not "where's the beef?" but upon his nomination for the Nobel Peace table spirit was the only force to keep them where's the outrage? Where's the anger Prize. alive. What was to become of them?" He that ought to have met the deaths of 241 was touched by the orphaned, homeless United States marines in the truck-bombing Reprinted below is the letter of nomination I sent to the Nobel Foundation in Sweden: children who were trying to survive: "I was in Beirut through the failure by officers of amazed and moved by their fortitude," he the station to block the road? Where's the I would like to call your attention to a wrote. "They had experienced every heart­ anger over the 37 deaths on the Stark? And man who in the opinion of many deserves break; they could not possibly look to the now, where's the outrage over the disclo­ the respected honor of the Nobel Peace future without a feeling of terror, and yet sures of misconduct and incompetence in Prize. Monsignor John Patrick Carroll­ they could still find the courage to smile. Government by public officials of the high­ Abbing, age 75, has spent fifty years in the They pushed forward along the roads, bare­ est rank? service of humanity. He has devoted his life footed and half-naked, undernourished and Those deaths and illegalities excited to the care of the children of the world. sickly, exposed to every physical and moral hardly a tremor, but the amorous peccadil­ Over the past fifty years Monsignor Carroll­ danger. I was amazed not by the tempta­ loes of Gary Hart generated as much excite­ Abbing has had a tremendous influence on tions to which they had succumbed, but by ment forming these services he was in constant younger generation. To raise the level of public understanding danger, many times actually working under No institution would accept the vaga­ from frivolity to a readiness to take serious fire. As a chaplain for the war-wounded, he bonds, nor would the youngsters accept any things seriously will require a great and con­ founded many first aid stations for wounded institution. Monsignor Carroll-Abbing estab­ certed national effort-if, like the problem civilians and organized a group called Medi­ lished a place for these homeless boys called of controlling AIDS, we can figure out how cal Aid for the Battle Areas. As the allies the "Shoeshine Hotel," where he lived with it may be done. Until it is, we shall not soon swept north, new territories in need of aid them. Eventually the boys set up a division retrieve coherent national policy or the rule were opened. Monsignor Carroll-Abbing also of labor by which each was responsible for of law. worked for the Resistance, finding shelter some aspect of keeping up the hotel, such as and eventual freedom for allied prisoners of cooking and cleaning. The Monsignor re­ war and Italian Jews who were sought by ferred to the hotel as "their hotel, their A TRIBUTE TO REV. MSGR. the Nazis. home." As soon as the group outgrew the JOHN PATRICK CARROLL- For these actions he was awarded Italy's Shoeshine Hotel, the Monsignor negotiated ABBING Silver Medal for Military Valor, an honor with the Ministry of Defense for the use of rarely given to a civilian. After the war he abandoned barracks on the outskirts of was put in charge of all medical supplies Rome to house the children temporarily. HON. JOSEPH J. DioGUARDI sent by American relief funds, and began to Monsignor Carroll-Abbing's final solution OF NEW YORK give his attention to the problems of the to the problem of the thousands of aban­ IN THE HOUSE OF REPRESENTATIVES many displaced persons, the living casual­ doned children were the Boys' Towns, for Wednesday, October 7, 1987 ties of wartime, especially those who were which he is now world-renowned. The first disabled and ridden with disease. was set up in 1945 forty-five miles northwest Mr."''DIOGUARDI. Mr. Speaker, I rise today The most influential aspect of these years of Rome, on the coast. Soon others ap­ to once again pay tribute to Rev. Msgr. John was his association with young people. peared. The purpose of the Boys' Towns was October 7, 1987 EXTENSIONS OF REMARKS 26935 to give a home, as well as dignity, to the her family, such as looking after siblings or President Guiseppe Saragat of Italy: "• • • youngsters who had lost so much during the making a financial contribution; but today, an undertaking that has done so much good war. He also succeeded in establishing them he or she feels like a burden. "The only way to our country and that puts into practice in society by giving them responsibilities. we can reclaim our young people is to give the highest moral principles of the Chris­ Trust and love were his two foundations. them responsibility, give them a sense of tian message. Our very particular gratitude The Boys' Towns were run completely by dignity," he says. "Kids will never mature to you who have founded and nurtured this the children, whose ages ranged from ten to unless you give them responsibility." Fur­ organization with such enthusiasm and mer­ eighteen years. He raised funds for his Boys' thermore, "they must be taught responsibil­ itorious fervor." Towns by bringing the plight of the home­ ity today, while they are young. Not with Chancellor Konrad Adenauer of Germany: less children to the attention of the world sermons, not with mere words, but by giving "Congratulations for your beneficient work through fundraising tours in the United them concrete day-to-day responsibilities." for the underprivileged children of Italy." States and other countries. The Monsignor feels that it is important for United States President Richard Nixon: Each Town has its own shops, farms and parents to show love and caring to build "The vital work of Boys' Towns of Italy banks, which are all run by the youths. The their child's self-esteem. merits the gratitude and admiration of all Towns have lush vegetation and decorations men of conscience and goodwill. For if we of which the inhabitants are proud. Each THE LEGACY youngster learns a trade which will be devel­ His major contribution to society has been are to realize the peaceful, prospering socie­ oped in his or her adult life. There is a trade to give so many young people a new chance, ty we seek, we must begin by forging a system by which they export much of their to give each child a purpose in life. This better life for the world's children." ceramic, leather and wood products.

ing to withstand the wind and the rain, PUBLIC POWER WEEK In t~e area of spiritual and personal growth, lightning and thunder that have character­ Wesprne offers evenings of conversation with ized the black sojourn in America. They HON. HAL DAUB area leaders, weekly conferences given by the need the anchor and rightful pride of a chaplain, personal counseling, college en­ great people that produced a Harriet OF NEBRASKA trance, and career guidance programs. They Tubman and Sojourner Truth and Freder­ IN THE HOUSE OF REPRESENTATIVES engage in volunteer activities such as service ick Douglass from slavery, a Benjamin Mays and Martin Luther King, Jr. and Fannie Wednesday, October 7, 1987 projects in conjunction with social service agencies and visits to the elderly who live Lou Hamer from segregation, people second Mr. DAUB. Mr. Speaker, the American alone or in nursing homes. to none in helping transform America from Public Power Association has designated the Wespine is operated by the Association for ·a theoretical to a more living democracy. week of October 4-10 as Public Power Week. Educational Development, a not-for-profit cor­ The last step is to keep dreaming and During this week, the APPA and the nearly poration which conducts youth centers aiming high. At a time when so many in 2,000 publicly owned electric utilities across public and private life seem to be seeking throughout the Midwest. Spiritual guidance at the country are conducting public awareness the lowest common denominator of public activities designed to communicate the bene­ these centers is entrusted to Opus Dei-work and personal conduct, I hope you will dream of God-a prelature of the Roman Catholic fits of public power to electricity consumers. and set new examples of service and cour­ Church. The great State of Nebraska has called this age. The professional men and older students week a "Celebration of Success" as it looks Dr. Benjamin Mays, a former president of who comprise the volunteer staff transmit to back on the tradition of public power in Ne­ Morehouse College and role model for me young people a youthful and practical desire said: "It must be borne in mind that the braska. Nebraska is the only State which is for human excellence and the pursuit of ideals tragedy of life doesn't lie in not reaching entirely supported by locally owned public in life. your goal. The tragedy lies in having no power. It is not a coincidence that Nebraska Through its programs and activities We­ goal to reach. It is not a calamity to die with continues to have some of the lowest electric­ spine offers human and spiritual formation to dreams unfulfilled, but it is a calamity not ity rates in the Nation. young men during the most formative years of to dream. It is not a disaster to be unable to The presence of public power in the Great their lives-from fifth grade up. capture your ideal, but it is a disaster to Plains has helped to deliver electricity to rural Mr. Speaker, there are no substitutes for have no ideal to capture. It is not a disgrace areas which would not have power otherwise. not to reach the stars, but it is a disgrace to gifts of service given from the heart. President Whether it's irrigation, electricity, or recreation, have no stars to reach for. Not failure, but Reagan has made voluntarism-private sector the products of public power in Nebraska low aim, is sin." We must aim high for our initiatives-a national priority. And it is fitting have enhanced the quality of life for the children and teach them to aim high. that we honor the Wespine Study Center people of Nebraska. I'd like to end with part of a prayer for which has met the needs of so many young I encourage my colleagues to take a look at children written by Ina Hughes of South men and their families over the years. Carolina. the fascinating history of public power and un­ We pray for children derstand its importance to the economic well­ who spend all their allowance before being of States like Nebraska. FINANCIAL SERVICES HOLDING Tuesday, COMPANY ACT who throw tantrums in the grocery store and pick at their food, COMMENDING THE WESPINE who like ghost stories, STUDY CENTER HON. who shove dirty clothes under the bed, OF CALIFORNIA and never rinse out the tub, HON. JACK BUECHNER IN THE HOUSE OF REPRESENTATIVES who get visits from the tooth fairy, who don't like to be kissed in front of the OF MISSOURI Wednesday, October 7, 1987 carpool, IN THE HOUSE OF REPRESENTATIVES Mr. DREIER of California. Mr. Speaker, the who squirm in church and scream in the Wednesday, October 7, 1987 Financial Services Holding Co., concept is a phone, Mr. BUECHNER. Mr. Speaker, I rise today new and ambitious proposal for restructuring whose tears we sometimes laugh at and the financial services industry. On October 1 1 whose smiles can make us cry. to extend both my congratulations and my gratitude to my friend, Mr. John Gatewood, on introduced H.R. 3360, to establish financ{al And we pray for those services holding companies, a concept devel­ whose nightmares come in the daytime, his devotion of volunteer service to young men in my district. John is the executive direc­ oped by the Association of Bank Holding who will eat anything, Companies. As is the case with any new pro­ who have never seen a dentist, tor of the Wespine Study Center-an organi­ who aren't spoiled by anybody, zation made possible only by the se1fless posal which seeks fundamental change, the who go to bed hungry and cry themselves dedication of John and others like him. Financial Services Holding Co., concept raises to sleep, No matter how big Government gets, and as many questions as it does answers in the who live and move, but have no being. no matter how many services it provides, it present debate over the appropriate legal and We pray for children who want to be car­ can never take the place of volunteers. We­ regulatory structure of banks. I would like to ried and for those who must, spine has provided a great service in building submit for the record responses to some fun­ For those we never give up on and for character and integrity in young men. This damental questions regarding H.R. 3360. those who don't get a second chance. summer, I had the privilege of meeting some QUESTIONS AND ANSWERS REGARDING " FINAN- For those we smother • • • and for those of the young men at their summer camp. CIAL SERVICES HOLDING COMPANY ACT" who will grab the hand of anybody kind 1. Why is a "financial services holding enough to offer it. Computers, lab equipment, the great works of literature, and the ever important perfect company" needed? Please offer your hands to them. Let your paper airplane-to study aerodynamics-were For years, the financial services industry Amen be in your committed actions to help was rather neatly compartmentalized. Bro­ black children when you leave here. They all part of this unique setting. kerage firms served one segment of the desperately need your help on a one-to-one The Wespine Study Center fosters personal market, commercial banks another segment basis and in the political arena. We must all and intellectual leadership among young men. of the market, and thrift institutions yet an­ work to redirect the nation's foolish prior­ Their activities include: supplementary educa­ other. Beginning in the mid-1970's, these ities which favor bombs and missiles over tional activities for junior high school boys in clear-cut distinctions among the various babies and mothers upon whom our real na­ which the boys learn new skills and put their providers of financial services began to tional and community security rest. hands and their minds to work, using their evaporate. The invention of "NOW" ac­ time constructively. With a combination of ath­ counts by the thrift industry in New Eng­ land, and of money market funds by the se­ letics, hobby skills, and academic activities, curities industry, are two examples of the these young men are encouraged to give im­ changes that took place in the 1970's. The portance to serious study, loyal friendships, unique and well-defined categories of busi­ respect for family values, and sportsmanship. ness for banks and other financial institu- October 7, 1987 EXTENSIONS OF REMARKS 26939 tions no longer fit. As these distinctions with bank holding companies. proposed by the Association uninsured affiliates, thereby protecting de­ driven. of Bank Holding Companies provides this positors' funds. Anti-competitive interests will always at­ structure by allowing any company "finan­ 6. How would an FSHC be certified and tempt to block market improvements by cial in nature" to own a bank holding com­ regulated? using arguments against change. Nonethe­ pany, and thereby own a full-service com­ Certification of an FSHC would be ob­ less, these anti-competitive arguments mercial bank or banks. At the same time, a tained by submitting a notice to the Federal should not obscure the fact that consumers bank holding company may utilize the same Reserve Board stating that the company's will benefit from the diversification and FSHCA framework to own insurance, securi­ activities will be limited to those provided competition occurring in all segments of the ties and real estate firms. By building on for by the Act and that insured depository financial services business. the experience of the Bank Holding Compa­ institutions affiliated with the FSHC will be 11. Will the creation of FSHC's lead to an ny Act, the FSHCA provides a flexible in compliance with the provisions of the undesirable concentration of financial re­ mechanism for financial services companies FSHCA restricting transactions with affili­ sources? to serve businesses and consumers while still ates. Following certification by the Federal The FSHC proposed by the Association re­ allowing for appropriate regulation and su­ Reserve Board, which would be an automat­ flects the view that commercial firms such pervision of the affiliated despository insti­ ic process so long as the terms of the statute as General Motors or Ford should not be af­ tutions. were met, the activities of the FSHC would filiated with a bank holding company. We The Financial Services Holding Company be regulated on a functional basis. The bank believe that if such affiliations were permit­ concept is therefore a product of holding company would be regulated and ted, they could lead to an undesirable con­ market forces. supervised by the Federal Reserve Board centration of economic resources. 2. Would the FSHC proposal require and state bank supervisors; savings and loan With regard to companies "financial in major changes in the present system of de­ associations by the Federal Home Loan nature," each industry-banking, securities, livery of financial services? Bank Board and state savings and loan su­ insurance and real estate-have different The creation of a FSHC is voluntary. pervisors; insurance companies by their re­ levels of concentration and different yard­ There is no requirement for change in the spective state insurance commissioners; and sticks by which concentration is measured. present operation of existing financial insti­ investment companies and securities compa­ It is not at all clear that, taken either sepa­ tutions. A bank holding company may con­ nies by the Securities and Exchange Com­ rately or together, concentration in these tinue to operate under present law and reg­ mission and state securities regulators. industries should be considered a problem. ulation. Only when the management of a 7. Are companies outside the scope of "fi­ In banking, for example, the industry is bank holding company desires full entry nancial in nature" covered by the Financial noteworthy for its lack of concentration. into the securities, real estate and/or insur­ Services Holding Company Act? Moreover, there has never been agreement ance fields need it then opt for FSHC Companies outside the scope of "financial among academicians about what should con­ status. The same course may be followed by in nature" are not covered by the FSHCA. stitute a true measure of concentration in non-bank financial companies: only if the This means that a firm in commerce gener­ banking. Should it relate to deposit-taking managements of these firms chose to own ally-e.g., retailing, manufacturing or pub­ or to the granting of commercial or con­ full-service commercial banks would it lishing-would not be eligible to form an sumer credit? If deposits are considered as become necessary to form a FSHC. FSHC in order to own a full-service com­ the criterion, should foreign and domestic 3. How would a FSHC be structured vics-a­ mercial bank. The FSHCA broadens the deposits be included, and should the depos­ vis a bank holding company? scope of financial businesses that may be af­ its in thrift institutions and such near-de­ The bank holding company is the corner­ filiated with insured commercial banks, but posits as money market funds be included? stone of the FSHC, in recognition of the it retains a distinction between financial Citicorp, for example, as the nation's largest fact that today most banks are affiliated services and commerce generally. bank holding company, has less than two 26940 EXTENSIONS OF REMARKS October 7, 1987 percent <2%> of the domestic deposits of all activist of all times, Dick Gregory deserves the hold was so poor that often there were no U.S. banks; if deposits of thrift institutions accolades recently bestowed upon him in the lights, no hot water and no working stove. are inc1uded, this number drops to about Washington Times. Today, I wish to share Rep. William Clay, a Missouri Democrat 1.35%. Thus, there is no evidence that the with my colleagues the story of a man who who knew Dick Gregory as a boy, remem­ growth of bank holding companies has led bers that poverty and added, "But he was a to adverse concentration in the national recognizes that the civil rights struggle is no very good athlete.'' banking market. It is relevant to note that laughing matter. Mr. Gregory became a distance runner the number of commercial banks, 14,200, is A MONSTER AT HIS HEELS KEEPS GREGORY and track star. That got him a scholarship the same as it was ten years ago. Even with GOING to Southern Illinois University at Carbon­ the spate of mergers that have occurred, Concurrently, foreign banks not phy. Hit 'em quick. Don't give them too Playboy Club, even before Bill Cosby," Mr. subject to many of the restrictions placed much time. Use satire so sweet, they don't Wilson recalled. "But he gave it all up to on American banks continue to garner a immediately notice the bitterness. So join the civil rights movement.'' growing share of U.S. banking assets. potent, it hits hard later on. That call came from the late civil rights Using yardsticks applicable to their indus­ Remember his old chicken joke? activist Medgar Evers. Mr. Gregory canceled try, the securities and insurance businesses "Last time I was down South I walked into engagements and flew to Mississippi and turn out to be much more heavily concen­ this restaurant and this white waitress came Alabama. At his expense, he airlifted food trated. For example, the ten largest life in­ up to me and said, "We don't serve colored to Mississippi families whose federal food surance companies have 43 percent of the people here." subsidies were cut off by the Leflore County industry's assets. Nevertheless, with thou­ "I said, 'That's all right. I don't eat col­ government in retaliation for black voter sands of firms in this industry, and with rel­ ored people. Bring me a whole fried chick­ registration drives there. atively easy entry, the life insurance indus­ en'." Before it was all over, Mr. Gregory was try need not be considered overly concen­ "Right about that time these three cous­ beaten, jailed and often criticized by a press trated. With regard to the securities indus­ ins walk in. You know the ones I mean­ that claimed he joined the movement for try, various criteria may be used, and some Klu, Kluck and Klan. And they say: 'Boy, the publicity. "No way," said Mr. Wilson. show significant concentration. For exam­ we're givin' you fair warning.' Anything you "He actually lost a lot of bookings because ple, the New York Times reported that the do to that chicken, we're gonna do to you.'' he was helping the movement." top ten corporate underwriters accounted "So I put down my knife and fork, and I "He was always there," recalled Carl for 91% of all volume of new corporate picked up that chicken and I kissed it.'' Holman, executive director of the national issues in 1985; by a different measure, the In his autobiography, "Nigger," published Urban Coalition. "Unlike some entertainers Securities Industry Association reported in 1964, Mr. Gregory tried to describe the who got in, then got out of the movement, that in 1984 the top ten firms' total under­ urge that compels him to become involved he's remained a supporter of causes even to writing revenues came to 48% of the total in one cause after another, often at great his own financial detriment. The phone for the industry. expense: rings and Dick Gregory is there.'' By eliminating artificial barriers to entry "I feel it when we march down a street for "I used to tell him, 'Dick, why are you of bank holding companies into other finan­ our rights. A familiar dry taste in my going to give up all your nightclub engage­ cial services activities, and allowing for reci­ mouth, that old hot water seeping into a ments for the movement? Why not keep procity, the FSHC can promote increased working and give money?' " said lifelong competition, which should be the guiding cold body . . . the race was for survival and principle for antitrust policy in any indus­ the monster said go.'' friend Ron Townson, a signer with the Fifth try. And because commercial and manufac­ The monster's been at his heels for 35 Dimension. "But Dick said he felt he had to turing firms would not be allowed to estab­ years. be there. He felt he had something more to lish FSHC's, there is no possibility that cor­ "I'm thankful I'm married to a black give than money." porate combinations along the lines of Japa­ woman that's never put a demand on me," Mr. Gregory remembers his roller-coaster nese or German models could emerge. Mr. Gregory said in a recent interview. "I've financial predicament very well: "I owned a 12. What are the advantages of the FSHC never had to make a decision based on how Rolls-Royce once and had it repossessed. structure to smaller institutions? it affects my family. The decision has But it was never an embarrassment to my There are advantages to the FSHC struc­ always been, 'How will it affect the move­ wife if everything we had was lost, because ture to institutions of all sizes. First, this ment?'" we always knew that the civil rights move­ flexible structure would be an option avail­ Since the mid-'70s, Mr. Gregory has lived ment was bigger than our family, our mar­ able to all institutions. It is not necessary with his wife, Lillian, on a farm in Plym­ riage, our relationship." for an institution to be a particular size to outh, Mass. He said they raise not crops but "Dick was protesting segregation long take advantage of the opportunities that "children." before Brown vs. the Board of Education," the FSHC structure provides. Second, even Mr. Gregory is the father of 10 with seven Mr. Townson said. "When we were in high though an institution may not choose to of his children still in college. His oldest, school, he led a walkout. engage in the expanded securities, real Michele, is earning a doctorate in sexual "Summer High School was a black school estate or insurance activities that would be harassment in the work place at the London that had three times the 1,200 kids it was made available under the FSHC concept, it School of Economics, an accomplishment he supposed to have. It wasn't long after that nonetheless would find increased flexibility mentions with immense pride in his sing­ we got annexes for the overcrowding. A few to conduct its existing businesses. Any bank song tenor. years later the schools were desegregated.'' holding company could benefit from reorga­ At 55, the mature Dick Gregory isn't Mr. Clay's wife, Carol, was Mr. Gregory's nizing its existing nonbanking businesses much different from the skinny welfare kid classmate. "Dick led 3,000 kids on a march into the FSHC structure so as to utilize the who shined shoes in St. Louis, according to to the board of education," the congressman advantages of the system of functional regu­ his boyhood friend , an IBM recalled. "He organized his school and the lation it provides. marketing executive who still lives in Mis­ two other black high schools, which were so Also, the bill contains provisions allowing souri. overcrowded the kids were sitting on the ra­ national banks to engage directly in low­ "Unlike some people who get ahead, he diators. risk, agency-type financial activities, with­ always remembers his friends," Mr. Wilson "Dick Gregory decided to do something out having to establish a bank holding com­ said. "He'll always stop and say, 'Hi.'" about it. He stirred that city up.'' pany and/or financial services holding com­ Mr. Gregory's been an entrepreneur for When the civil rights turmoil calmed, the pany structure. several years. Last year, Dick Gregory's monster still wouldn't let him rest. In No­ Slim-Safe Bahamian Diet and his firm, The vember 1967, Mr. Gregory began a series of Dick Gregory Correction Connection Inc., fasts, lasting from 40 to 80 days, to drama­ A FUNNY MAN'S FIGHT which distributes a substance abuse remedy, tize his anti-war stance on Vietnam. grossed $61 million. He has plans in the Between 1962 and 1968 he was arrested works for a children's anti-drugs coloring more than 20 times for nonviolent protests. HON. WIWAM (BILL) CLAY book and expansion into non-perishable . In 1969, he reduced his political activism, re­ OF MISSOURI household iteins. suming his nightclub act for four years. He IN THE HOUSE OF REPRESENTATIVES "But he's still the same," Mr. Wilson said. left show business for good in 1973. Wednesday, October 7, 1987 "He's never lost his roots.'' Mr. Gregory's But even venturing into business didn't "roots" were a mother he idolized, three stop the urge. Mr. CLAY. Mr. Speaker, a celebrated come­ brothers, two sisters, and an abusive and As recently as April, Mr. Gregory was ar­ dian and one of the most dedicated civil rights often absentee father. The Gregory house- rested in McLean, Va., for protesting too October 7, 1987 EXTENSIONS OF REMARKS 26941 close to CIA headquarters. He called for a place else, because of what it means. It goes against the Soviets arguing that a more federal grant jury probe of charges made in means more blacks will get into the econom­ reasonable policy after the rape of Afghani­ the CBS-TV newsmagazine "West 57th." ic mainstream. stan would be to expand East-West trade, The show claimed the CIA employed known "What keeps me going is there's always which he claimed would "not add signifi­ drug smugglers to fly arms to Nicaraguan been more victories than failures. Because cantly to the military capacity of the rebels and looked the other way when the of Malcolm [X] and Martin [Luther King] U.S.S.R." planes returned with cargos of illegal drugs. and the Urban League and the SCLC and Mr. Verity's interest in the issue was not Mr. Gregory had just gotten out of jail SNCC, and Stokely [Carmichael] and Ralph merely academic. In the detente boom after being arrested the week before in At­ [Abernathy] and the NAACP, something years, the Soviet Union purchased $80 mil­ lanta for demonstrating outside the federal happened in the '60s that changed this lion in goods and services from Armco, Inc., jail, protesting Cuban refugees' treatment planet. of which Mr. Verity was then chairman. In there. The week before he was arrested in "I'm so glad I can say I was part of it. We the late 70's the would-be Commerce Secre­ Washington after protesting too near the black folks pulled something off that had tary was working to seal a multibillion South African Embassy. never been pulled off before. dollar deal with the Soviets, which would He's said more than once while being led "There are folks out there who just sit have engaged Armco in a dozen industrial to prison, "Here I go again!" That commit­ and criticize and have unknowlingly pimped projects in the U.S.S.R. over a 15 to 20 year ment has not gone unnoticed. Cars stopped the civil rights movement. But when you period. when drivers spotted Mr. Gregory's reed­ hear black folks say we're losing what we Mr. Verity's zest for making money from thin figure walking through the streets of gained, it's because they haven't been out trade with Moscow seems to be in indirect Washington recently. there." relation to his concern for the victims of "Hey Greg! How ya doing? Good to see He can't talk much longer. He's off again Soviet repression. In 1979, he contributed to you," yelled one driver after another. to do a "Donahue" show in Connecticut, a book published by the American Commit­ He waved casually, yelled back, "How y'all then there are other meetings in London, tee on East-West Accord entitled "Common doing? God bless you!" then Los Angeles. He seldom stops. The Sense in U.S.-Soviet Trade." Mr. Verity as­ "It's nice to be recognized for a good monster won't let him. sailed the Jackson-Vanik amendment, which reason," Mr. Gregory said softly. "It's not tied Soviet trade status to Jewish emigra­ like being Hitler or somebody." CONTRACTS FOR OBLIVION tion, and warned fellow free enterprisers to As long as he's known him, Mr. Clay said, beware lest the Soviets consider protesta­ Mr. Gregory's been willing to go anyWhere tions about the plight of more than 400,000 to help a cause. But some of the causes HON. JACK F. KEMP refuseniks an "interference with domestic these days stem from within the activists. OF NEW YORK affairs." Just in case he might be misunder­ "The two things closest to my heart are IN THE HOUSE OF REPRESENTATIVES stood, Mr. Verity later clarified his position the black family and changing the whole on the issue, saying, "The American Jewish diet," Mr. Gregory said. "I feel the No. 1 Wednesday, October 7, 1987 community can never be satisfied on this problem confronting America today in Mr. KEMP. Mr. Speaker, I applaud the ef­ matter. Their desires will ever be escalat­ health, and black forks are at the top of the forts of my Senate colleagues Senator JESSE ing." list." HELMS and Senator ALFONSE D'AMATO in Mr. Verity's life has been subsumed in According to figures compiled by his firm, bringing attention to C. William Verity's record commerce, and perhaps he can be forgiven blacks are 12 percent of the population. But for mistaking world politics for a contract they are at greater risk than whites for on East-West trade relations. negotiation: his apparent obliviousness to le­ cancer, high blood pressure and diabetes. The following editorial from the Washington gitimate demands by religious dissidents for "All the major things we die from are not Times chronicles the reasons why some of us the right to practice their faith is less excus­ diseases. They're conditions," Mr. Gregory believe that Mr. Verity's record and public able. He should not be invited to help for­ said. "Let's look at the diet. My contention statements must be examined very carefully mulate American policy. is that growing up black in America means before there is a vote to confirm him in the cigarettes, soda pop, candy bars, dope, beer Senate. and whiskey." His solution is to consume less meat, [From the Washington Times, Oct. 7, 19871 A TRIBUTE TO ARCHBISHOP sugar, salt and caffeine; eat more fruits and CONTRACTS FOR OBLIVION IAKOVOS vegetables, and exercise. He has been a The choice of C. William Verity for Secre­ strict vegetarian for years. tary of Commerce seems to be raising some Of course, being a businessman too, he's eyebrows on Capitol Hill, with Sens. Jesse HON.EDWARDF.~GHAN not likely to let the moment go by without a Helms and Alfonse D'Amato joining in an OF OHIO pitch to join Dick Gregory's Correction effort to block his Senate confirmation. The IN THE HOUSE OF REPRESENTATIVES Connection, Inc., and urge his listener to reason for the brewing storm is both Mr. Wednesday, October 7, 1987 become one of its distributors. Verity's long record of promoting trade with "But even if you don't join my company, the Soviet Union and, perhaps more alarm­ Mr. FEIGHAN. Mr. Speaker, on behalf of join somebody's. If you're not in business in ing, evidence that he has been less than en­ the people of northeast Ohio, I would like to America, you might as well go to another thusiastic about assisting persecuted Soviet take this opportunity to welcome Archbishop country," he said. "America caters to busi­ Jews. lakovos to the city of Cleveland. On October ness." As for the first, in the early 70's, Mr. 24, 1987 we will be hosting His Eminence and He advocates making this system work for Verity joined Armand Hammer and David blacks and the poor. Rockefeller in the effort to create a U.S.­ hundreds of other Greek Orthodox faithful "We need to come together, pool our re­ U.S.S.R. Trade and Economic Council, an from throughout the Western Hemisphere to sources and sell each other products. If idea long cherished by Mr. Hammer and of­ commemorate the archbishop's 28th year as women are being oppressed by men, then ficially boosted by a diplomatic protocol co­ primate of the Greek Orthodox Church of why don't women sell cosmetics to women? signed by then Treasury Secretary George North and South America. "Last year, black folks spent $1.5 billion Shultz. From 1977 to 1984, Mr. Verity co­ Archbishop lakovos, spiritual leader of over with Coca-Cola. If our muscles had been chaired the council, working with Soviet 2 million Greek Orthodox Christians in the flexed right, Coca-Cola would have been out Deputy Foreign Trade Minister Vladimir N. Americas, and dean of all religious leaders in of South Africa a long time ago. Shushkov and executive committee member "We spent $600 million on candy bars, and Yevgeny P. Pitovranov, a former director of the United States, has worked diligently for we don't even make a wrapper. How can my the KGB training school. Mr. Shushkov's over three decades to bring greater vitality black colleges be closing down when we greatest contribution to world comity was and unity to the church. spend $600 million on candy bars?" he helping to forge the deal by which private A vigilant crusader for human rights, Arch­ asked, his voice rising to an excited pitch. American companies constructed the giant bishop lakovos aligned himself and his church "The black community needs to be re-edu­ Kama River truck factory for the Soviet with the civil rights movement in the 1960's. cated in a number of ways. I think Jesse government. He lobbied Congress in favor of the Civil [Jackson] will be able to do that, with the If Mr. Verity was shocked when armored Rights Act and marched beside Dr. Martin visibility. Even if he doesn't win-which he cars equipped with Kama River engines will-just seeing a black man run for presi­ rolled into Afghanistan-despite solemn Luther King in Selma on that historic day in dent will do a whole lot of folks good." Soviet assurances never to use Kama-pro­ 1965. In 197 4, he initiated a massive cam­ Mr. Gregory said he plans to work with duced equipped militarily-he gave no sign paign to assist Greek Cypriot refugees follow­ the Jackson campaign: "I wouldn't be any- of it. Indeed, he was soon ridiculing embar- ing the invasion of Cyprus by Turkish forces, 26942 EXTENSIONS OF REMARKS October 7, 1987 and he has forcefully spoken out against the This open letter had attached to it a chart THE ALruMEDA BUREAU OF violation of human rights by oppressive gov­ setting out the economic side effects of this ELECTRICITY AND THE PUBLIC ernments throughout the world. legislation. The chart illustrates the costs of POWER MOVEMENT An ardent ecumenist, lakovos was the first implementing H.R. 162 for two businesses: Greek Orthodox Archbishop to visit the Pope For an average-sized small business with 57 HON. FORTNEY H. (PETE) STARK in 350 years when he was received by Pope employees and for a small business with 16 OF CALIFORNIA John XXIII at the Vatican in 1959. Ten years employees. It is based on actual operating later, he was the first Greek Orthodox Arch­ cost data and illustrates the impact on IN THE HOUSE OF REPRESENTATIVES bishop to preach in St. Patrick's Cathedral. He bottom-line combined costs of implementing Wednesday, October 7, 1987 also served as copresident of the World the mandated benefits provisions in H.R. 162. Mr. STARK. Mr. Speaker, this week we are Council of Churches for 8 years and initiated The chart indicates that the total cost to the Orthodox dialogs with Roman Catholics, Angli­ celebrating Public Power Week. The public small employer is $26,000 to $50,000 and the cans, Lutherans, Southern Baptist, and Black power movement started over a century ago, cost to the medium employer is $37,000 to church leaders. on the night of March 31, 1880, in Wabash, $97,000. These estimates take into consider­ Acknowledged as the most important figure IN. Ten thousand people watched as four in American Orthodoxy, he has not only ation such things as individual notification 3,000-candlepower arc lights on the top of the headed the largest Orthodox body in the cost, surveillance and testing, transportation, courthouse were lit. The scene that followed United States, but also founded and chairs the food, and lodging associated with medical was described by a witness: Standing Conference of Canonical Orthodox monitoring, cost of idle equipment, and the "The strange, weird light, exceeded in Bishops in the Americas [SCOBA], represent­ cost of the medical removal provision. What it power only by the sun, rendered the square ing over 7 million Orthodox Christians of does not include in the total cost estimate are as light as midday. Men fell on their knees, Greek, Russian, Romanian, Antiochian, Bul­ the inestimated increases or savings in work­ groans were uttered at the sight and many garian, Carpatho-Russian, Serbian, and ers' compensation or health insurance. were dumb with amazement." Ukrainian jurisdictions. On September 20 of Another letter from a businessman to one The electrical revolution had begun. this year in our Nation's Capitol, he led a Dox­ of our colleagues states: Today we're so accustomed to living with ology with his fellow SCOBA hierarchs on H.R. 162 would place an unacceptable electricity that we take it for granted. If the behalf of all Orthodox Christians, commemo­ burden on the small and medium manufac­ power goes out on Thanksgiving before dinner rating the 200th anniversary of our Nation's turing businesses and their employees in the is cooked, then we might groan-we might Constitution. United States. even fall to our knees, if we trip over the cat Archbisop lakovos has received honorary Should your first thought be, "This is the in the dark-but never again will we be dumb degrees from 35 universities and accolades usual rhetoric we hear from the business com­ with amazement when the lights go on. Elec­ from church and government leaders around munity"? Allow me to dissuade you of that tricity is now too commonplace. That is the tri­ the world. In 1980, President Carter presented thought. umph of the electrical revolution started by him with our Nation's highest civilian award, This particular letter came from Mr. Ken the public power movement. the Presidential Medal of Freedom, and Presi­ Foster, the former plant manager of the Au­ I am proud to have in my district one of the dent Reagan awarded him the Ellis Island gusta Chemical Plant where the National Insti­ pioneers of the public power movement, the Medal of Honor in 1986. tute for Occupational Safety and Health Alameda Bureau of Electricity. Alameda was These signal awards recognize the great [NIOSH] did a pilot notification project. among the first cities to generate electricity. In contribution that Archbishop lakovos has Mr. Foster's letter goes on to state: 1885, it contracted with the Jenny Electric Co. made to America's religious, political, and cul­ to install a generating plant and 59 street tural life. As a progressive religious leader The resulting scenario was an unmitigated disaster which produced enough informa­ lights. Two years later, Alameda bought the concerned with human rights and the ecumen­ tion about screening large groups of people works. The Alameda Bureau of Electricity was ical movement, he has put his preaching into for specific illnesses to cause your esteemed born. practice and given guidance to millions. We body to pause before it acts. At the time, opponents presented figures are proud to welcome him to Cleveland. I urge my colleagues not to turn a deaf ear proving that it would take 101 years to pay off to Mr. Foster. Let's pause before we consider the $40,000 price from profits. Alameda's BUSINESS'S ABILITY TO STAY IN enacting H.R. 162. Board of Trustees fearlessly went ahead. BUSINESS The liability ramifications of H.R. 162 are Today, 100 years later, the Bureau of Electrici­ ty pays annual dividends to Alameda's Gener­ enormous for our Nation's small employers. al Fund of $2.1 million. While it is true that large employers have had HON. TOM DeLAY The Alameda Bureau of Electricity has a fi­ OF TEXAS liability insurance, it is also true that hundreds, nancial record that puts numerous privately if not thousands, of small employers have had IN THE HOUSE OF REPRESENTATIVES operated companies to shame. What's more Wednesday, October 7, 1987 no liability insurance and would be threatened remarkable, its record of service and good with an incredible number of lawsuits. Even Mr. DELAY. Mr. Speaker, all too often Con­ management is not unusual in the public where some insurance existed, insurance power movement. Consider these facts: gress has passed legislation without fully un­ companies will fight a claim for past liability derstanding the consequences on the Federal First, public power plant company rates are 20, 30, 40 years ago, where coverage is am­ trough or on an employer's ability to effective­ far lower than private power company rates. biguous. Where does that leave an employer ly compete in the world market. Two exam­ Residential customers pay on average 40 per­ who is faced with a class action suit filed ples immediately come to mind: The 1972 by cent less for public power, and commercial amendments to the Longshoremen and several of his former employees? Punitive customers 30 percent less. Harbor Workers Compensation Act and the damages alone, which in some States are not The difference between public and private 1972 and 1977 amendments to the Black insurable, could bankrupt a small business. company rates has actually widened over the Lung Benefits Act. In both of those cases, Last year, the White House Conference on past decade. Why? Nonprofit status. Divi­ Congress had to revisit the legislation to undo Small Business named product liability as the dends don't have to be paid to out-of-town what had originally been done. Let's not make number one problem facing small business. stockholders. the same mistake with H.R. 162, the High Passage of H.R. 162 would only exacerbate Second, public power companies pay more Risk Occupational Disease Notification and this serious problem. of their gross income to the communities Prevention Act. Let's not act in haste. Let's follow the where they operate than private companies Enactment of S. 79/H.R. 162 will, by any advise of our experienced small businessmen. do. It's only natural. Locally controlled compa­ reasonable measure, destroy the jobs of Trade legislation will not protect the bankrupt nies have a greater stake in the community. countless American workers. That sentence business. Third, public power companies have pre­ appeared in an open letter to Members of the Reject H.R. 162 and support the more rea­ vented private power companies from monop­ House and Senate from approximately 200 sonable approach set forth in the Jeffords/ olizing power and jacking up rates sky-high. businesses and associations. He'nry substitute. When communities with private power compa- October 7, 1987 EXTENSIONS OF REMARKS 26943 nies merely consider switching to public devote to her husband, Albert and their two ventions that"* * * can help children embark power, suddenly the private company will children, Michael and Mary. and stay on the road to successful lives lower rates and grant concessions. Even cus­ Mr. Speaker, please join me today in paying * * *" including quality child care arrange­ tomers of private power companies benefit tribute to this incredible woman and constitu­ ments for teen parents in schools and poor from public power! ent of mine, Vera DeMarco. She is truly de­ working parents. In fact, the public power companies have serving of the recognition she is being paid According to the CEO report, child care promoted competition so well that in the today. should "* * * provide intellectual stimulation 1920's the private power companies tried to and opportunities to learn socialization skills. eliminate them. The private companies waged Good child care programs should provide low national campaign to stop the public move­ HOW MANY TIMES DO WE NEED a TO HEAR IT: CHILD CARE? staff-to-child ratios and an appropriate devel­ ment. They thought they'd won. In his 1925 in­ opmental curriculum * * *" in a physically augural address, President Calvin Coolidge safe environment with flexible hours. said that, by his election, "the policy of public HON.AUGUSTUSF.HA~NS The United States is the only Westernized ownership of railroads and certain electric utili­ OF CALIFORNIA Nation that does not have a National child ties met with unmistakable defeat." IN THE HOUSE OF REPRESENTATIVES care policy. With the increasing influx of Coolidge should have kept silent. Public Wednesday, October 7, 1987 power held on-and preserved healthy com­ women · into the labor force, the issue of how petition in the power industry. Mr. HAWKINS. Mr. Speaker, how many to care for America's children is becoming The public power movement exemplifies the times do we have to hear it? How many times critical. Productivity and efficiency suffer when American ideal of local people working togeth­ does it have to be said? Child Care. America's workers spend more time worrying about their er to meet local needs. It's an American suc­ children are in need of quality child care that children during the workday. cess story. The Alameda Bureau of Electricity is affordable and accessible to all working par­ Last year, as chairman of the Education and has been a part of that success since the ents. Different communities across the country Labor Committee, I issued the "Report on movement began. are spreading the news. Children in America: A Strategy for the 1OOth Several Members of the House and Senate, Congress," which calls for, as one of its including Representatives LANTOS, MILLER, goals, the development of a national child A TRIBUTE TO VERA DEMARCO BIAGGI, KILDEE and Senators RIEGLE, DODD, care policy. In order to build that policy, I rec­ and CRANSTON have brought the issue before ommended that Congress take the following their respective houses. HON. JOSEPH J. DioGUARDI actions during the 1OOth session: Several reports have been issued in the OF NEW YORK First. Enact the Family and Medical Leave IN THE HOUSE OF REPRESENTATIVES past year that break down the facts about the types of child care needed and the cost. For Act of 1987; Wednesday, October 7, 1987 example, AT&T released "Investing in Quality Second. Increase funding of title XX of the Mr. DIOGUARDI. Mr. Speaker, I rise today Child Care," which provided recommendations social services block grant for child care; to pay tribute to a distinguished member of my on employee child care support for employers. Third. Increase funding of the Child Care district, Vera DeMarco. On Friday, October 9, "Who's Minding the Kids?" issued by the Food Program; Vera will be the honored recipient of the 1987 Bureau of the Census, U.S. Department of Fourth. Increase funding for Head Start an­ Humanitarian Award presented by the city of Commerce, provided data on child care ar­ nually so that the number of children receiving Yonkers Columbus Day Celebration Commit­ rangements during the winter of 1984-85. assistance is increased by 20 percent annual­ tee. The Population Reference Bureau, Inc., re­ ly until all eligible recipients are served; Vera's commitment to her community and leased, "Juggling Jobs and Babies: America's Fifth. Enact legislation that provides tax in­ her family is unyielding. Her spirit of volunteer­ Child Care Challenge," a report that docu­ centives to employers who make provisions ism has positively affected the lives of people mented the increasing number of mothers for child care for employees; of all ages. From young children to teens to with young children in the work force and the Sixth. Enact legislation that provides stand­ senior citizens, Vera has worked assiduously need to provide quality child care. The Ameri­ ards for training, planning, and development helping others. She is a past president of the can Federation of State, County and Municipal of child care services and credentialling by Queens Daughters Day Care Center, a Employees [AFSCME] reported findings from 1990;and member of the advisory board and board of a survey of 600 working Americans regarding Seventh. Expand the information and refer­ directors of Enrico Fermi School, and the the growing need for child care by working ral activities of the State Grants for Depend­ Treasurer of "YES," Yonkers Employment for parents. The National Black Child Develop­ ent Care Program. Also, implement a program Seniors. In addition, The Italian Government ment Institute examined tr1e potential conse­ of demonstration activities for preschool and knighted Vera with the title of "Cavaliere" for quences of establishing child care in public early childhood education targeting low­ her tireless dedication to the Italian language schools. classes and Italian community. She is also the The media has loaded the public with re­ income children, and a program of school­ president of the Westchester Chapter of the frains for child care, including Fortune maga­ based comprehensive centers with child care American Committee on Italian Migration. zine, "Executive Guilt: Who's Taking Care of for teen parents. Vera has been an involved member of the Children?", Time magazine, "Who's Bring­ The time has come to begin to put the many diverse community groups and organiza­ ing Up Baby?", Ms. Magazine, "Whose Job is pieces of a national child care policy together. tions. She is a past president of Big Brothers, Child Care?", and Newsweek, "What Price A coalition of labor, education, religious, social Big Sisters; past residential chairperson of the Day Care?'' Local TV and radio stations and services, science, and government organiza­ United Way of Yonkers and an honorary newspapers, including USA Today, the New tions have mobilized the Alliance for Better board member; a board member of the Ameri­ York Times, the Washington Post, the Los An­ Child Care [ABC]. The coalition's primary pur­ can Cancer Society; member of the Yonkers geles Times, and the Boston Globe have ex­ pose, at this time, is to develop legislation to Rotary Club; past president and breakfast pounded on the need for child care. help create a national child care policy. It is chairperson of the Yonkers Chamber of Com­ Most recently, representatives from the anticipated that the Act for Better Child Care merce; president of the North Yonkers Mer­ business community added their voices. The Services of 1987, a comprehensive child care chants Association; treasurer of the Friends of Committee on Economic Development [CEO] bill, will be introduced in both houses soon. the Yonkers Public Library; cochairperson of issued its report, entitled, "Children in Need: Some of the pieces of a national child care the annual March of Dimes Walk-a-Thon, and Investment Strategies for the Educationally policy are already in place. Others will need to secretary and advisory board member of the Disadvantaged." According to Owen B. Butler, be created. The ABC bill is a good beginning, Salvation Army. vice chairman of the CEO, who testified but this bill is just that-a beginning. I encour­ In addition to her innumerable volunteer ac­ before a joint session of the House Commit­ age my colleagues to give this important issue tivities and services, Vera is employed as as­ tee on Education and Labor and the Senate their attention and best efforts. sistant vice president of the Westminster Bank Committee on Labor and Human Resources, of U.S.A. Remarkably, she still finds time to CEO recommended a number of early inter- 26944 EXTENSIONS OF REMARKS October 7, 1987 DEREGULATION AND RURAL "In a sense," says Calvin Beale, a U.S. Agri­ tween life and death for me." Now his life AMERICA culture Department population expert, depends on a more haphazard arrangement. "rural development was propped up by fed­ Since bus deregulation began in 1982, eral regulation." more than 3,000 small towns and cities have HON. HAL DAUB SPEEDING DEPOPULATION? lost bus service, according to the Depart­ OF NEBRASKA Deregulation is underscoring the extent of ment of Transportation. Star Bus Lines, the IN THE HOUSE OF REPRESENTATIVES those hidden rural subsidies as it wipes Panhandle's last remaining local carrier, Wednesday, October 7, 1987 them out. Mr. Beale and others worry that still has travel posters for Hawaii and Aus­ the process is also hastening the depopula­ tralia on the walls of its Scottsbluff termi­ Mr. DAUB. Mr. Speaker, I would like to ex­ tion of some of the same communities that nal. But a bus traveler headed for one of press my concern regarding deregulation and regulation once helped build. those exotic destinations must first take the effects it has on rural areas with small "If the present deregulation trend contin­ Star's 6:30 a.m. bus 40 miles south to Kim­ populations. Whether it is the bus system, the ues," warns Sen. Larry Pressler, Republican ball, Neb., then catch the westbound Grey­ airlines, the telephones, trucking, or the of South Dakota, a longtime opponent of bound for Cheyenne, then wait for the bus banks, rural areas often pay for the costs of the trend, "small cities and towns could end south to Denver. The 250-mile trip takes a day and a night. Few people bother. deregulation while others reap the benefits. up as remnants of the past." Since the beginning of the 1980s, nearly Darlene Ruth, Star's manager, says the I read with interest a Wall Stfeet Journal ar­ half the nation's nonmetropolitan counties bus line is thinking about ending its sched­ ticle which discusses the effects of deregula­ have lost population, reversing the widely uled runs and just offering charter service. tion in rural areas, and I ask that it be includ­ publicized back-to-the-land trend of the pre­ Under deregulation, big carriers like Grey­ ed in the RECORD so that Members may be vious decade. Agriculture's problems, farm hound Lines Inc. juggle schedules and aware of the consequences in rural America. consolidations and the aging of the rural routes so fast, Mrs. Ruth says, that feeder I would also like to ask that my comments population have all contributed. "But when operations like Star can't keep up. "You get on the designation of October 4-1 0 as Public you deregulate," says William S. Duncan, the impression they don't care about us Power Week by the American Public Power head of the Mountain Association for Com­ little people in between the big cities," she munity Economic Development in Berea, says. Association be included in the RECORD. Ky., "you're making a social decision to The article follows: become a nation of big cities." TRUCKS [From the Wall Street Journal, Oct. 5, 19871 On the high plains of western Nebraska's Richard Holliday, a blunt-spoken former COUNTRY BLUES: DEREGULATION RAISES Panhandle, a region that is as large as all of trucker whose Gehring, Neb.-based Nebras­ PRICES, CUTS SERVICES IN MANY RURAL lower New England but has a population of ka Transport Co. is the region's biggest AREAs less than 100,000 deregulation's impact isn't truck line, says that since deregulation he (By Bill Richards) like that of the dust storms and droughts has routinely slashed rates for customers on that sent farmers stampeding in years past. highly competitive interstate-highway SCOTTSBLUFF, NE.-As Scottsbluff's mayor, routes. But customers in communities off Donald Overman, recalls that unpleasant Instead, it is more like erosion, making life a morning several years back, snow was blow­ bit more expensive here and a bit less palat­ the beaten path, where there is no truck ing out of a leaden sky when his eastbound able there. competition, have to pay more than their Frontier Commuter Airlines flight set down THE TELEPHONE urban counterparts. Mr. Holliday offers a at North Platte, Neb. At her desk in Crawford, Neb.'s tiny city gloomy prediction for some of the industry's As soon as the door popped open, the crew hall, Mary McGinnis, 65, holds forth about customers: "The mom-and-pop store in some hastily departed, leaving the plane sitting her telephone bill from Northwestern Bell small, out-of-the-way town-they've had it." on the tarmac with Mr. Overman and 20 Telephone Co. "Can you believe?" Craw­ In a corner booth at the 77 Lounge in other bewildered passengers waiting to fly ford's white-haired water commissioner tells Chadron, Neb., far from any interstate, on across the state. The pilot retmned to a handful of loungers. "The bill on that old owner Evva Gore whips out a freight bill to announce that the airline was jettisoning its el-cheapo dial telephone of mine, it went up show a visitor just how fast her trucking unprofitable route across Nebraska. He gave nearly 300% since 1984"-from $7 a month costs are climbing. It costs $13.55 to have the passengers a choice: Fly 200 miles in the to $27. three cases of liquor hauled 400 miles across opposite direction to Frontier's home base In the past, the Federal Coriununications the state fr.om Omaha, up from $12.78 last in Denver or stay dumped in North Platte. Commission required telephone companies year. Mr. Overman calls it "a pretty dramatic to charge urban and rural customers the "When I saw that I said 'bullfeathers,' " lesson in deregulation." same for service, in effect subsidizing rural says Mrs. Gore, a 27-year veteran of the bar For big-city dwellers, deregulation has service, which is far more expensive because business. The 77 Lounge is up for sale-not mostly been a boon. Wider freedom from there are far fewer customers to cover fixed because of deregulation-and Mrs. Gore federal rules has often led to cutthroat com­ costs. But since deregulation, phone compa­ says she is looking forward to moving some­ petition in everything from interest rates to nies are passing on more of the actual serv­ place warmer. Meanwhile, she confides that intercity flights and telephone calls. ice cost to their customers, and rural phone she has worked out a way to beat the price bills are soaring. increase: "I drive my motor home to Omaha DIFFERENT IN THE PANHANDLE and tell them to fill up the bathtub with But in sparsely populated places like the By itself, a rising phone bill isn't likely to send anyone packing for the city. Still, Mrs. cases of booze." Nebraska Panhandle, deregulation hurts. Not everyone in Chadron's business com­ Although some 700 banks have branches in McGinnis says she sometimes finds herself thinking the unthinkable these days-con­ munity can improvise like Mrs. Gore. James New York City and about 40 airlines fly in templating a move to a bigger place, like Aspden, manager of Jenkens Implement and out of Chicago, a rural area frequently Co., wends his way between bins stuffed has only a single supplier of such vital serv­ Rapid City, S.D. "It would be nice," she says, "living close to where things are with spare farm-machinery parts and stops ices. in front of a 16-foot sickle bar. Mr. Aspden So as regulatory control fades, prices are cheaper." THE BUS says the device costs only $150, but he has climbing in these areas-and service is dwin­ to tack on $50 more to cover trucking dling. From banks to buses to telephones, William Shay is one of a contingent of dis­ charges. When a freak hailstorm caused $25 deregulation is driving home a hard eco­ abled veterans around Scottsbluff who million of damage to the town last summer, nomic lesson: Big government may not fit travel regularly to Veterans Administration Chadron residents discovered they could with the rural self-image of rugged individ­ hospitals for treatment. He suffers from find replacements for their shattered storm ualism, but no government is sometimes edema. Twice a month, the 70-year-old windows for $20 less in towns with better worse. former farm laborer leaves his rented room truck service. "Rural people place great value on the so that doctors can drain off the fluid that idea of self-sufficiency. but they operate in balloons his weight to 290 pounds. THE BANK a framework that is anything but independ­ Mr. Shay, who has had two heart atacks, When Robert McCulley turned up at the ent," says George W. Rucker, research di­ used to take the bus to the veterans' hospi­ Holiday Restaurant in Kimball, Neb., one rector for Rural America, a Washington tal in Hot Springs, S.D., some 150 miles evening this past July, more than 50 people D.C. public-interest group. Mr. Rucker and north of Scottsbluff. Then came deregula­ crowded into the back room to meet him. others say that federal regulation has long tion and the bus route was eventually Mr. McCulley is no celebrity; he is a broker amounted to a subsidy of low-price rural dropped. Now he waits for the local veter­ for E.F. Hutton & Co. And like a growing power, transportation, telephone and other ans' office to find him rides and doesn't number of bankers, brokers and other services, acting as a form of social engineer­ always get to the hospital on schedule. money managers these days, he spends ing to build and maintain rural populations. "That bus," he says, "was the difference be- more time in small towns and cities and the October 7, 1987 EXTENSIONS OF REMARKS 26945 Panhandle trying to persuade people to put effort," says Carl Dierks, Chadron's city the top ten charts. Black leadership has per­ their money elsewhere than the local bank. manager. meated a range of mainstream institutions. Deregulation means more business for Mr. Among other problems, Mr. Dierks points Bill Gray chairs the House Budget Commit­ McCulley and his fellow circuit riders. But out, there would be no air link for nearly tee, Frank Thomas heads the Ford Founda­ it is sapping life from small-town banks and 2,000 students who attend Chadron State tion, and Cliff Wharton heads TIAA-CREF. from the communities that rely on them. College, the community's economic anchor. A. Barry Rand is in charge of marketing at Under deregulation, many rural banks are Mr. Dierks is heading an effort to broaden Xerox. Anita De Frantz is America's repre­ forced to pay higher interest to compete Chadron's agriculture-based economy. But sentative to the Olympic Committee, and with outsiders for deposits. Deregulation he says one of the f.irst things prospective Richard Knight is the city manager of has also cleared the way for big outside employers ask about is air service. Dallas. banks to steal away borrowers who once "Disaster might be too strong a word to I am proud of these and many similar ac­ automatically would have gone to their describe the effect of losing our air service," complishments and applaud the black local bank fo!' cash. Mr. Dierks says. "But it would certainly middle class for whom the times are good In a report on changes in rural America make Chadron a less desirable place to live." tonight. We've worked hard to get where we last year, researchers at the Kansas City are. However, we have to work harder still Federal Reserve Bank weighed the pros and to stay there and to move ahead. cons of bank deregulation and concluded, THE FUTURE OF BLACK But there is another black community "On balance, economic activity in many AMERICA that is not riding high tonight and that is rural communities probably has been nega­ going down and under. If you and I don't tively affected by higher [loan] interest HON. WILLIAM (BILL) CLAY build a bridge back to them and throw out rates from deregulation." OF MISSOURI some strong lifelines to our children and Michael Nelson, president of Kimball's youths and families whom poverty and un­ First State Bank, estimates that 25% of the IN THE HOUSE OF REPRESENTATIVES employment and hopelessness are engulf­ money the town's 3,500 residents might Wednesday, October 7, 1987 ing, they're going to drown, pull many of us have deposited L~ his bank in the past now Mr. CLAY. Mr. Speaker, The Congressional down with them, and ur.dermine the black goes to brokerage houses and other outsid­ future that our forebears dreamed, strug­ ers. Squeezed for profits, small-town banks Black Caucus and Congressional Black gled, and died for. are shying away from putting money into Caucus Foundation recently convened the I am grateful, therefore, that the Congres­ uncertain local business ventures. "These 17th annual legislative weekend in Washing­ sional Black Caucus has focused attention days," says Lewis Mehling, vice chairman of ton. In conjunction with the theme of · this this year on Educating the Black Child. Just American National Bank in Sidney, Neb., year's event, "Educating the Black Child: Our as Martin Luther King, Jr. and others ac­ "you're a little less inclined to stick your cepted the challenge of their time, so the neck out to help some young person get Past and Our Future" the keynote speaker, Marian Wright Edelman, president of the Chil­ challenge of our time is educating all of our started." children in mind, in body, and in soul if we Mr. Mehling's bank recently turned down ren's Defense Fund, gave a moving address on the very special needs of our black chil­ are to preserve and strengthen the black applicants seeking business loans to launch future. a restaurant and a retail store in Sidney. dren. I commend her remarks to my col­ It is the worst of times for poor black There isn't much likelihood the businesses leagues. babies born within a mile of this hotel and will get help elsewhere. "E.F. Hutton," Kim­ CONGRESSIONAL BLACK CAUCUS AWARDS in many inner cities around the country ball's Mr. Nelson points out dryly, "doesn't DINNER, WASHINGTON, DC, PRESENTATION who have less of a chance of living to the finance gas stations and clothing stores." BY MARIAN WRIGHT EDELMAN, PRESIDENT, first year of life than a baby born in Costa THE PLANE CHILDREN'S DEFENSE FuND Rica. Black babies are still twice as likely to At his insurance agency in Scottsbluff, It was the best of times, it was the worst die in the first year of life than white Mayor Overman keeps a plastic model of a of times, it was the age of wisdom, it was the babies. passenger jet behind his desk. It is a talis­ age of foolishness, it was the epoch of It is the worst of times for black youth man of sorts, since Scottsbulff has managed belief, it was the epoch of incredulity, it was and young adults trying to form families to hold on to some air service since deregu­ the season of light, it was the season of without decent skills Oi' jobs and without a lation. But at a price. There are no Super­ darkness, it was the spring of hope, it was strong value base. Young marriages have es­ savers or fare wars. Since 1984, four airlines the winter of despair.-A Tale of Two Cities, sentially stopped in the black community. have come and gone, including the one that book 1, chapter 1. Sixt.y percent of all black babies today are stranded Mr. Overman in North Platte. The You have no right to enjoy a child's share born to never married single mothers; 90 i50-mile flight to Denver now costs $75, up in the labors of your fathers unless your percent of those born to black teens are from $49 three years ago. children are to be blest by your labors.­ born to unmarried mothers. One out of two chil­ out of a small town had climbed by 16% For many of you sitting in this room, it is dren in black female-headed households are while the cost of flying out of big cities had the best of times. Black per capita income is poor. If that household is headed by a declined by 33%. A federal aviation expert at an all-time high and many of you have mother younger than 25, three out of four says those percentages are "still in the ball­ moved up the corporate ladder even if the are poor. Even'when teen pregnancy results park ~oday.") ladders you are on frequently don't reach in marriage, young two-parent families are Mr. Overman isn't complaining about the towards the pinnacle of corporate power. almost three times as likely to be poor as price. He has been to Washington twice re­ Black purchasing power, now at $200 billion, those with parents 25 to 44 years of age. cently pleading for federal help to keep exceeds the gross national· product of Aus­ A significant cause of this black family Scottsbluff's air connection alive. The city is tralia and New Zealand combined. But it problem lies in young black men's eroding 400 miles from Lincoln and Omaha, Nebras­ has not yet been translated into commensu­ employment and wage base. Only 26.5 per­ ka's state capital and its financial center. rate black economic influence and benefit. cent of all black male teens were employed Without air service, the mayor says, "we Black elected officials are more numerous in 1986 and 61.3 percent of those 20 to 24 might as well be in another country," tha.n ever <6,681 in 1987, a 350 percent in­ years old. And even when they are lucky Other Panhandle communities are even crease since 1970). But white economic enough to work they frequently can't earn more worried. Since deregulation, virtually power still controls our city tax bases. The enough to lift a family out of poverty. Be­ all the region's air service depends on the amassing of committee and subcommittee tween 1973 and 1984, the average real (infla­ federal government's Essential Air Service chairmanships <8 full House Committee tion-adjusted) annual earnings among males program, which provides subsidies to com­ chairs including the Select Committee, and ages 20 through 24 fell by nearly 30 percent muter lines servicing otherwise unprofitable 18 subcommittee chairs) by members of this that the rich are becoming richer and the poor OF OHIO Only 12% of new jobs have been in the are becoming poorer under the Reagan ad­ IN THE HOUSE OF REPRESENTATIVES low-skill, low pay category. . the carefully crafted compromise produced ABUSE Although not a native of the area, Ray through those talks. Many discussions have Madden came to symbolize the strength and been held where these farm organizations HON. ROBERT E. BADHAM industry of the great steel city of Gary. As a even flew producers in from several poultry OF CALIFORNIA next door neighbor to my hometown of Chica­ States for their direct input into the process. IN THE HOUSE OF REPRESENTATIVES go, he shared the passion for what the Mid­ At this point, it might be useful for me to west had become in his lifetime-the focal briefly explain how this compromise differs Wednesday, October 7, 1987 point of American manufacturing. Ray Madden from the legislation I introduced in the 98th Mr. BADHAM. Mr. Speaker, it is my pleas­ represented his district, and his entire area, and 99th Congresses. First, my earlier bills ure to tell my colleagues about a special pro­ with consummate skill and energy. would have allowed the Packers and Stock­ gram in California to fight drug abuse. It's At the helm of the Rules Committee, Chair­ yards Administration to enforce all existing called Red Ribbon Week and it lasts from Oc­ man Madden steered a firm and fair path regulations over poultry marketing practices tober 25 to October 31. through the legislative process. Much of what through administrative procedures. This meant This statewide campaign is designed to I have adopted as my way of chairing a com­ that the Department of Agriculture's adminis­ attack the drug problem where it starts by en­ mittee I learned from him. trative law judges could have pursued alleged couraging everyone to stay away from drugs. Ray chose to stay in Washington after he violators of regulations over such areas as Last year thousands of people wore red rib­ left the Congress, and I had many happy oc­ contract compliance and weighing practices bons to show their support for a drug-free casions of encountering him on the street and without having to take them to U.S. district community. Government leaders, school in the halls. He always had something worth- court. Both the National Broiler Council and teachers, students, businessmen, la'A'Yers and October 7, 1987 EXTENSIONS OF REMARKS 26951 reporters wore the ribbons. The ribbons dential veto) were wise. The Reagan admin­ Cornwell, and Capt. Joseph Houghton Ill of remind us that we have a lot of work to do to istration feels they haven't worked and the 175th Tactical Fighter Group of the Air stamp out drug abuse, but they also show our won't, and some part of the Congress feels they haven't worked and will-if they are National Guard, I commend you for a job well commitment to show drug abuse for what it is: strengthened. Many others who detest done. contemptible, despicable, and pitiful. apartheid are agnostic. A year's experience Wearing ribbons alone will not solve the has shown sanctions cut both ways: they drug problem, but when so many people dem­ push the ruling white minority toward A TRIBUTE TO MRS. VIRGINIA onstrate that they know the terrible punish­ reform, but they also stiffen its resistance. H. AND JOHN T. HAZEL, JR. ment that drugs can inflict upon individuals Before considering new sanctions, more and society, we make progress toward making time and evidence are needed to calculate HON. STAN PARRIS drug abuse socially unaccceptable to our the net effect of old ones. There is genuine uncertainty about which OF VIRGINIA entire community. I would like to take this op­ external actions promote and which retard IN THE HOUSE OF REPRESENTATIVES portunity to commend Californians for a Drug internal change. Still, what is clear is that Wednesday, October 7, 1987 Free Youth and the California Department of South Africa is not only a society being Alcohol and Drug Programs for their work on daily torn apart by apartheid but also one Mr. PARRIS. Mr. Speaker, on October 17, this important project. The California State As­ being increasingly touched by impulses 1987, Mrs. Virginia H. and John T. Hazel, Jr., sembly and the California State Senate have toward reform. Whether these will produce will be honored by receiving the Founders expressed their support for Red Ribbon Week a sustained wave is the great question. It is Award, presented by the Northern Virginia and I'm sure my colleagues in the House of evident that the various sources of change Community Foundation at its annual dinner. inside and outside South Africa are making My colleague, Representative FRANK WOLF, Representatives join me in commending this a mark. Look at the items listed by Secre­ program. tary of State George Shultz in a speech on of Virginia, joins me today in applauding the Mr. Speaker, we must fight drug abuse with Sept. 29: the new Indaba constitutional pro­ accomplishments of Jinx and Til Hazel and in strength and commitment. I encourage all posals negotiated by all racial groups in saluting the Northern Virginia Community Californians to wear red ribbons during this Natal, the meetings of Afrikaners and the Foundation for its outstanding achievements special week to show such commitment. African National Congress, negotiations which have benefited all citizens in northern across racial lines by black trade unions and Virginia. NVCF is a tax-exempt organization other groups. Any strategic view must take UNITED STATES POLICY established in 1978 by a number of citizens into account the reality of apartheid's hor­ from northern Virginia. The foundation's funds TOWARD SOUTH AFRICA rors and the potential of developments like these. are used to support the arts, education, health In his speech Mr. Shultz reaffirmed the care, youth oriented programs and civic im­ HON. WM. S. BROOMFIELD administration view that the primary provements for the benefit of citizens living OF MICHIGAN sources of change in South Africa are inter­ and working in northern Virginia. IN THE HOUSE OF REPRESENTATIVES nal and that American influence is necessar­ The Founders Award is NVCF's most pres­ Wednesday, October 7, 1987 ily limited. He took the occasion to present tigious award and is presented annually for a democratic vision of South Africa's future Mr. BROOMFIELD. Mr. Speaker, it has outstanding community service and dedication and to summarize the contribution the to the betterment of northern Virginia and to been nearly 1 year since Congress overrode United States intends to keep making by its the President's veto and imposed sanctions openness to all peaceful groups, by its aid to promote awareness of the significance of indi­ against South Africa. While the Anti-Apartheid black projects and by its forward-looking vidual action in improving the quality of life for Act of 1986 contained several different ap­ private business presence. all persons in the community. proaches toward South Africa, including aid to Some critics view the administration ap­ .This year's recipients, Jinx and Til Hazel proach as a cop-out, or worse. We disagree. have had an enormous, personal influence on black and other disadvantaged communities in The administration's effort to keep the that country, it is most widely known for the the improvement and character of our north­ policy, and the policy debate, within consen­ ern Virginia community. economic sanctions it contains. Before the ink sual bounds makes sense. was dry on the act's implementing regulations, Both Jinx and Til were born in Arlington, VA, calls for more and tougher sanctions were al­ and both graduated from Washington-Lee ready being heard. A TRIBUTE TO THE 175TH High School. Jinx went on to attend Western Before Congress rushes headlong into' the TACTICAL FIGHTER GROUP Maryland University, while Til attended Har­ process of adding to the list of economic vard College and ultimately graduated from sanctions already in effect against South Afri­ HON. C. THOMAS McMILLEN Harvard Law School. They have four children, cans-both black and white-perhaps we OF MARYLAND Leigh Ann, Jack, Jim, and Dick. should attempt to determine the effect sanc­ IN THE HOUSE OF REPRESENTATIVES It is difficult to summarize the impact that Jinx and Til Hazel have had on the northern tions have had on South Africa. As the Wash­ Wednesday, October 7, 1987 ington Post indicated in its lead editorial Octo­ Virginia area. Many of you in the Congress ber 4, 1987, "before considering new sanc­ Mr. McMILLEN of Maryland. Mr. Speaker, know this area as a thriving business and resi­ tions, more time and evidence are needed to Top Gun is alive and performing well for the dential community. Let me assure you that it calculate the net effect of old ones." The Post 175th Tactical Fighter Group of the Maryland was not always this way. In fact, they used to goes on to indicate that current administration Air National Guard. refer to the congressional districts across the policy toward South Africa "makes sense," Recently, fighter pilots from this unit won river as the "bedroom community" of Wash­ and cites Secretary Shultz's remarks about the East Coast Hog Shoot, taking two of the ington, DC. "the contribution the United States intends to seven individual awards and receiving top But thanks to the guidance of people like keep making by its openness to all peaceful marks for navigational skills. Flying the A-1 0 Jinx and Til Hazel, northern Virginia has grown groups, by its aid to black projects and by its attack plane, or "Warthog" as it is fondly re­ into its own-a major metropolitan community, forward-looking private business presence." ferred to by its pilots, the 175th Tactical Fight­ offering the best in schools, housing, recrea­ For the benefit of my colleagues who may not er group will now go to the international com­ tion, economic opportunity, jobs, and so much have seen this editorial, it follows in its entire­ petition Gunsmoke to be held by the U.S. Air more that I can't name all its attributes in the ty: Force at Nellis Air Force Base in Nevada. At time alloted. [From the Washington Post, Oct. 4, 19871 the last international competition in 1985, the Northern Virginia is a thriving business com­ 175th Tactical Fighter Group also represented munity, with one of the lowest unemployment THE WRONG SOUTH AFRICA DEBATE the Air National Guard's A-1 0 units. rates in the United States. This is in no small A requirement for review written into We all know how important the Air National part due to Til Hazel, who envisioned northern anti-apartheid legislation enacted last year is putting the question of sanctions against Guard is to our national security, Mr. Speaker. Virginia as an ideal area, ripe for business de­ South Africa back on the political agenda. They mean much more to our defense pos­ velopment. Corporations by the hundreds It's a debate for which there is no serious ture than a "weekend warrior" tag could ever have relocated in northern Virginia, making it need. There is scant agreement on whether imply. To Maj. Ron Ball, Maj. Charlie Morgan, one of the leading commercial communities the sanctions voted last year