March 6, 1974 CONGRESSIONAL RECORD-HOUSE 5431 HOUSE OF· REPRESENTATIVES-Wednesday March 6, 1974 The House met at 12 o'clock noon. ute and to revise and extend his re­ cent in a three-way race in 1968, and in The Chaplain, Rev. Edward G. Latch marks.) 1972, 63 percent. D.D., offered the following prayer: Mr. VANIK. Mr. Speaker, in this morn­ The voters' performance at the polls Beloved, follow not that which is evil, ing's mail, I received from the Internal yesterday is a clear indication of the but that which is good. He that doeth Revenue Service a copy of their latest regard for the Nixon administration held good is of God.-m John 11. publication, "Statistics of Income, 1971, by its longest and most loyal supporters. Individual Income Tax Returns." ToM LUKEN's campaign proved that the Almighty God, our Father, According to the :figures on page 6, economic issue is the difference between " 'Mid all the tramc of the ways-­ there were 883 Americans in 1971 filing Democrats and Republicans. TOM LUKEN Turmoils without, within- returns of $1 million and over. Three of called for an "economy that puts needs Make in my heart a quiet place, those individuals, with total adjusted of life before claims of profit or power." And come and dwell therein." gross income of $6,495,000, paid no Fed­ He stated that the Nixon administra­ Waiting upon Thee in spirit and in eral income taxes. tion "is making a mockery" of congres­ truth may we receive wisdom to make Twelve individuals, who had adjusted sional efforts to deal with the energy wise decisions, courage to carry our re­ gross incomes of between half a million crisis. sponsibilities with honor and love to and a million dollars in tax year 1971, had TOM LUKEN asked the voters of Cin­ motivate us in all our endeavors. returns which were not taxable. These cinnati if they were "tired of spending Bless our Nation with Thy loving favor 12 people had a total adjusted gross in­ 85 cents for a half gallon of milk" and and our leaders with Thy gracious spirit, come of $8,582,000. If this kind of income "alarmed about sending their kids to together may we be channels for Justice can go untaxed-who should be paying school in the dark," to turn things around and peace and good will in our world. taxes? and send a Democrat to Washington. With the spirit of Christ we pray. The extent of tax abuse through the Mr. Speaker, I think this is a clear Amen. use of tax loopholes extends through the message to our friends on the other side· broad spectrum of the high income tax that we need a veto-proof Congress. brackets. Maybe they will help. THE JOURNAL I also want to point out, Mr. Speaker, that there are thousands and thousands The SPEAKER. The Chair has ex­ of wealthy taxpayers who have income amined the Journal of the last day's pro­ which is not included in adjusted gross NEW PROGRAMS FOR DEFENSE ceedings and announces to the House his income-such as interest from tax-free CMr. BINGHAM asked and was given approval thereof. State and local bonds. These individuals Without objection, the Journal stands permission to address the House for 1 can be millionaires, pay absolutely no minute, and to revise and extend his approved. Federal tax, and yet this fact will not There was no objection. remarks.> show up in the ms statistics. Mr. BINGHAM. Mr. Speaker, some of Mr. Speaker, tax reform and tax jus­ us in this body have urged in the past tice must be one of the top priorities of that the Defense Department should MESSAGE FROM THE SENATE this Congress. abandon the idea of constructing huge A message from the Senate by Mr. and very vulnerable nuclear aircraft Arrington, one of its clerks, announced carriers and concentrate, instead, on that the Senate had passed with an DEMOCRATIC VICTORY IN more numerous and less expensive ships amendment, in which the concurrence of in order to protect the sea lanes. the House is requested, a bill of the House

J..• March 6, 1974 CONGRESSIONAL RECORD- HOUSE 5449 respect to production of new oil which, For the reasons given by the gentle­ Mr. HORTON. Mr. Chairman, I make therefore, would discourage further man from New York BY MB. HORTON' guidelines which may form the basis, in ness concerns will receive equitable treat­ Mr. BROYHILL of North Carolina. Mr. whole or tn part, for any rule, regulation or ment under actions of the Administration: Chairman, I offer an amendment as a order with such modlftcations as are neces­ Provided, however, That, pending the adop­ substitute for the amendment offered sary to insure confidentiality protected un­ tion of such procedures, the administrative der such section 552. Such agency shall, upon procedures established in sections 207 and by the gentleman from New York (Mr. written request of a petitioner filed after 211 of the Economic Stabilization Act of 1970 HORTON). any grant or denial of a request for excep­ (12 U.S.C. 1904 note) shall be applicable to The Clerk read as follows: tion or exemption from rules or orders, all actions and activities of the Administra­ Amendment offered by Mr. BBonm.r. of furnish the petitioner with a written opin­ tion. North Carolina as a substitute for the ion setting forth applicable facts and the amendment offered by Mr. HORTON: On page legal basts in support of such grant or denial. Mr. HORTON (during the reading). 23, lines 21-25, and page 24, lines 1-5, delete Such opinions shall be made available to the Mr. Chairman, I ask unanimous consent the text beginning wtth '"The Admin1strator" petitioner and the public within thirty days that section 7 be considered as read, and ending with "Ad.min1strat1on" and sub­ of such request and with suoh modifications printed in the RECORD, and open to stitute therefor the folloWing: as are necessary to insure confidentiality of amendment at any point. "(i) (A) Subject to paragrapba (B), (0), illforma.tion protected under such section and (D) of this subsection, the provisions of 552. The CHAffiMAN. Is there objection to subchapter n of chapter 5 of title 6, Untted. the request of the gentleman from New (11) (A) Judicial review of administrative States Code, shall apply to any rule, regula­ rulemaking of general and national appllc­ York? tion or order (including any rule, regulation abllity done under this Act may be obtained There was no objection. or order of a state or local government or only by filing a petition for review in the AMENDMENT OFFERED BY Mlt. HORTON omcer thereof) issUed pursuant to Sections 5 and 7 of this title or pursuant to any func­ United Sta.tea Court of Appeals for the Dis­ Mr. HORTON. Mr. Chairman, I o1fer tion, action or activity thereunder. trict of Columbia within thirty days fro.m an amendment. (B) Notice of any proposed rule, regula­ the elate of promulgation of any such rule or The Clerk read as follows: tion or order described In paragraph (A) regulation, and judicial review of adminis­ Amendment offered by Mr. HORTON: On shall be given by publication of such pro- trative rulemaldng of general, but less than 5458 CONGRESSIONAL RECORD-HOUSE March 6, 1914 national, applicabillty done under this Act do require study. Bu~ Congress has given basic possible alternatives as to what may be obtained only by filing a petition for plenary consideration to, and adopted With­ procedures will govern: review in the United States Court of Ap­ out controversy, specific administrative pro­ peals for the appropriate circUit within cedures in S. 2589 that are designed specially · First. The bill as reported contains pro­ thirty days from the date of promulgation of to deal with the energy crisis and the needs vision for a 2-month study period and any such rule or regulation, the appropriate of the Administrator to respond thereto. report to Congress on fair and equitable circuit being defined as the circuit which There is, 1n other words, no need for further "administrative procedures." In the in­ contains the area or the greater part of the study; the necessary consideration has al­ terim the provisions of sections 207 and area within which the rule or regulation is ready been given to the issues. I! these pro­ 211 of the Economic Stabilization Act to have affect. cedures ultimately do prove unworkable, would apply. This is a totally unsatis­ (B) Notwithstanding the amount in con­ there wm be ample time to prescribe new factory approach. The many problems troversy, the district courts of the United ones. H.R. 11793 is only a temporary mea­ States shall have exclusive original jurtsdic­ sure anyway, and the procedures can be caused by actions taken under the Eco­ tion of all other cases or controversies aris­ reconsidered when and 1f H.R. 11793 is re­ nomic Stabilization Act without suitable ing under this Act, or under regulations or visited in two years. administrative procedures are the strong­ orders issued thereunder, except any actions The second reason for the amendment is est arguments to oppose the applicability taken to implement or enforce any rule or to eliminate a direct confilct between Sec­ of those provisions in the crucial initial order by any omcer of a State or local gov­ tion 7 (k) and 9 (g) . Section 9 ( g) provides 2 months of Federal Energy Administra­ ernment under section 5(3) of this Act ex­ that functions transferred to the Adminis­ tion existence. cept that nothing in this section affects the trator pursuant to Section 6 of the bill should Second. It is possible that the proce­ power of any court of competent jurisdic­ be exercised pursuant to the administra­ tion to consider, hear, and determine in any tive procedures currently applicable to those dures of whatever agency transfers au­ proceeding before it any issue raised by way functions. This ls appropriate to prevent dis­ thority to FEA would apply. This would of defense (other than a defense based on ruption of on-going proceedings. The dif­ lead to an inconsistency in rulemaking the constitutionality of this title or the valid­ ferent procedures contained in the proviso proceedings of FEA. Some proceedings of ity of action taken by any agency under to Section 7(k), however, are expressly made transferor agencies are not geared to ac­ this Act) . If in any such proceeding an issue applicable to "all actions and activities of the tions taken in an emergency atmosphere. by way of defense is raised based on the con­ Administration" (emphasis added.) The One individual might partake in three stitutionality of this Act or the validity of amendment makes it clear that the proce­ action under this Act, the case shall be sub­ dures provided therein apply to functions proceedings before FEA, all being con­ ject to removal. by either party to a district under Section 5 and 7 of the Act, not trans­ ducted under different rules of procedure. court of the United States in accordance ferred functions under Section 6. The amend­ This can only result in confllSion and with the applicable provisions of chapter 89 ment proposes the procedures of S. 2589 ineffectiveness. of title 28, United States Code. Cases or con­ rather than the Economic Stabilization Act Third. The amendment before the troversies arising under any rule, regulation procedures because, as noted above, the House which parallels the provisions con­ or order of any omcer of a State or local former procedures have been fully consid­ tained in the Emergency Energy Act is government may be heard in either (1) any ered recently by both Houses in acting upon a carefully thought out procedure geared appropriate State court, and (2) without S. 2589, while the Economic Stabilization regard to the amount in controversy, the dis­ Act procedures, which have proved highly to be utilized in the context of the emer­ trict courts of the United States. unsatisfactory because they provide wholly gency nature of actions required. (111) The Administrator may by rule pre­ inadequate rights to hearing and judicial It allows the Administrator to act im­ scribe procedures for State or local govern­ review, have not been formally reviewed by mediately where such action is required ments which carry out functions under this Congress since enactment. but at the same time affords an oppor­ Act. Such procedures shall apply to such tunity for prior to implementation input governments in lleu of subsection (i), and Mr. BROYHILL of North Carolina and after implementation review. shall require that prior to taking any ac­ (during the reading). Mr. Chairman, I Section 19 of the act provides for an tion, such governments shall take steps rea­ ask unanimous consent that the amend­ sonably calculated to provide notice to per­ expiration date 2 years from the effective sons whe may be affected by the action, and ment offered as a substitute for the date. We are all aware that this legisla­ shall afford an opportunity for presentation amendment be considered as read and tion may be around for a considerably of views (including oral presentation of printed in the RECORD. longer time. The powers of the FEA may views where practicable) at least 10 days be­ The CHAIRMAN. Is there objection to grow tremendously, either from amend­ fore ta.king the action. the request of the gentleman from North ment or transfer of authority. It is es­ EXPLANATION OF AMENDMENT TO H.R. 11793 Carolina? sential, therefore, that the bill contain The primary purpose of the proposed There was no objection. from the beginning the best possible amendment is to establish administrative Mr. HOLIFIELD. Mr. Chairman, if the procedural safeguards. procedures comparable to those adopted The probability of Presidential veto of without controversy by both the Senate and gentleman will yield, I would ask the the Emergency Energy Act, S. 2589, the House in the pending emergency energy gentleman from North Carolina in what raises even further the possibility that legislation (S. 2589 and H.R. 11450) for the way his amendment expands or deletes Administrator to follow in carrying out the the Administrator will be able to exercise fl\nctions vested in him by Sections 5 and the procedures from the Standard Ad­ independently the functions and rule­ 7 of the bill. A secondary purpose is to re­ ministrative Procedures Act. ma.ltjng authority contained in H.R. solve a direct conftict that currently exists Mr. BROYHILL of North Carolina. Mr. 11793. in the b111 between sections 7(k) and 9(g) Chairman, let me explain to the gentle­ Section 5 containing the functions of and, that wm create vast confusion unless clarified. man from ·California that, as reported the Administrator and section 7 with its ,As currently drafted H.R. 11793 does con­ from committee, H.R. 11793 creates an rulemaking authority are not to be tain an administrative procedures provision, important and powerful regulatory lightly·regarded. The former enumerates but it ls inadequate and ignores concurrent agency. The bill as reported gives to its 12 distinct areas in which the Admin­ developments in connection with other pend­ istrator is authorized to act. The latter ing energy legislation. Section 7(k) provides Administrator a wide range of functions in sections 5 and 7 (j) and an extremely provides for a rulemaking authority that the Administrator shall study and re­ similar to that in which other agencies port to Congress on the appropriate proced­ broad grant of rulemaking authority in ures that should be applicable to the exercise have issued broad substantive rules. section 7(d). In addition, functions of If S. 2589 is vetoed, a successor bill may of the Administrator's functions under the otlie~ agencies are transferred to this Act. This section also provides that in the be passed without satisfactory procedural interim pending adoption of the recom­ agency under the provisions of section 6 safeguards, making it all the more essen­ mended procedures, the procedures of the while their procedures appear to be tial to amend section 7 Ck) in H.R. 11793. Economic Stabilization Act shall apply. transferred in section 9(g). Under these THE NEED FOR ADMINISTRATIVE DUE PROCESS Such a provision-including the reguire­ powers the AdministratOr can "prevent ment for a study-would be appropriate 1n Legislation which in the past has at­ the absence of the work done by both Houses unreasonable profits," "promote iStability tempted to meet emergency or crisis on administrative procedures for the energy in energy prices," "develop and oversee­ situations has failed to provide for suit­ crisis in connection With s. 2589. The Eco­ mandatory energy programs," in addi­ able Administrative Procedural provi­ nomic Stabilization Act procedures have not tion t.o the transfers under section 6. In sions. The goal of procedures in this type been formally reviewed by Congress since en­ regard to the promulgation of rUles, regu­ actment 1n 1970, and they have 1n fact of legislation should be to provide orderly proved to be highly unsatisfactory because lations, and orders by the Administrator, process for affected individuals and cor­ they provide wholly inadequate rights to the bill seems to provide several ditferent porations while at the same time provid­ hearing and judicial review. In short, they procedures. There are, however, three ing the greatest degree of safeguards to March 6, 1974 CONGRESSIONAL RECORD-HOUSE 5459 those individuals and corporations af­ the same time allowing the Administra­ S. 2589 rather than the Economic Stabil­ fected by the actions of the agency con­ tor to act immediately where circum­ ization Act procedures because, as noted sistent with the necessity for prompt stances require that he do so. above, the former procedures have been agency actions. The primary purpose of the proposed fully considered recently by both Houses Actions taken by the Administrator in amendment is to establish administra­ in .acting upon S. 2589, while the Eco­ carrying out the functions under this bill tive procedures comparable to those nomic Stabilization Act procedures, will have a deep and far-reaching effect. adopted without controversy by both which have proved highly unsatisfac­ The amendment provides that a publica­ the Senate and the House in the pend­ tory because they provide wholly inade­ tion in the Federal Register will give at ing emergency energy legislation (S. quate rights to hearing and judicial re­ least 10 days notice of a proposed rule, 2589 and H.R. 11450) for the Adminis­ view, have not been formally reviewed regulation or order and shall provide an trator to follow in carrying out the by Congress since enactment. opportunity for comment. In the past functions vested in him by sections 5 and Mr. HOLIFIELD. Mr. Chairman, will agencies such as the Cost of Living Coun­ 7 of the bill. A secondary purpose is to the gentleman yield? cil have acted without having the benefit resolve a direct confiict that currently Mr. BROYHILL of North Carolina. I of those who will be most affected by an exists in the bill between sections 7 (k) would be delighted to yield to the Chair­ action. Often the prior views of those and 9(g) and that will create vast con­ man, the gentleman from California. knowledgeable in the field being regu­ fusion unless clarified. Mr. HOLIFIELD. I thank the gentle­ lated could have prevented an ill-con­ As currently drafted H.R. 11793 does man for yielding. ceived plan or rule from going into ef­ contain and administrative procedures I will say to the gentleman that this is fect-a plan or rule which often had to provision, but it is inadequate and ig­ a long amendment. There are a number be subsequently altered. The functions of nores concurrent developments in con­ of pages. Neither Mr. HORTON nor I have the agency can best be carried out by an nection with other pending energy legis­ had a chance to study it. I, therefore, feel Administrator who issues rules, regula­ lation. Section 7 (k) provides that the that we had better put this thing on ice. tions, or orders which emanate from the Administrator shall study and report to When the gentleman leaves the well, greatest possible data base. The provision Congress on the appropriate procedures therefore, I am going to move that the in this amendment allowing a period of that should be applicable to the exer­ Committee do now rise so that we can comment prior to implementation goes a cise of the Administrator's functions study this over night and know what we long way toward achieving that goal. under the act. This section also provides are doing. Instances may occur where to achieve that in the interim pending adoption of Mr. Chairman, I move that the Com­ the purposes of the act immediate action the recommended procedures, the pro­ mittee do now rise. is required on the part of the Admin­ cedures of the Economic Stabilization The motion was agreed to. istrator. The amendment provides that Act shall apply. Accordingly the Committee rose; and the provisions for notice and opportu­ Such a provision-including the re­ the Speaker having resumed the chair, nity to comment may be waived where quirement for a study-would be appro­ Mr. FLYNT, Chairman of the Committee strict compliance is found to cause seri­ priate in the absence of the work done of the Whole House on the State of the ous impairment to the operation of the by both Houses on administrative pro­ Union, reported that that Committee, program. In order to insure that this pro­ cedures for the energy crisis in connec­ having had under consideration the bill vision for waiver is not abused by the tion with S. 2589. The Economic Stabi­

Moreover, I recommend against establish­ THE CASE AGAINST A "STAND-BY" WAGE/PRICE Long run stabilization of the economy ment of the proposed stand-by wage/price AGENCY will be best served by a return to a free monitoring agency. Consider the ci:eation of a stand-by wage/ market economy. After more than 2 years Controls distort free markets and collective price agency. If such agency were created, it of controls, public support and confidence bargaining. would certainly be subject to continual po­ have been severely eroded by frequent Examine the flaws in these proposals: litical pressure to reimpose controls over this All controls, if kept on for very long, tend or that industry or union. The "responsibil­ and confusing changes in guidelines and to distort free markets and collective bar­ ity" for inflation control would be thought regulations, recurring shortages and con­ gaining. The longer they are in, the greater to be in the hands of this agency instead of tinued rise in prices. The time has come the distortions, and the greater the danger at the more fundamental levels of fiscal and to eliminate controls completely and the economic system will shift from one that monetary policy, increased productivity, dissolve the Cost of Living Council. 1s market-driven to one that ls centrally structural form to increase competition and Mr. STEIGER of Arizona. Mr. Speak­ directed. individual responsibllity. er, it is because of my concern for the The longer controls exist, the more the de­ Secondly, the temptation of such an agency pendency on controls to "save us" from in­ to "fine-tune" the wage/price mechanism economy of this Nation that I join with flation rather than on tackling underlying would well nigh be irresistible. When govern­ the gentleman from California in urging causes. ment interventions are necessary in the eco­ my colleagues in the House to allow the There will always be some reason for keep­ nomic marketplace, then these should be ill-conceived Economic Stabilization Act ing controls on "a little longer." It is bet­ subject to Congressional debate and specific of 1970 to expire. ter to get out as soon as their short-range laws, not administrative determination. For some time now, I have called for usefulness has been exhausted. Finally, the mere existence of such an the repeal of this act. In April of last Controls become more dangerous •.. the agency would encourage price increases and longer they last. discourage decreases. One unfortunate lesson year, I voted against extending the act. I held these views in late 1972, as Chairman learned by business and labor during the It is my firm belief, Mr. Chairman, that of the Price Commission, and I hold them various Phases is that you had better get this piece of legislation has not helped even more vigorously today. Controls become wage and price increases when you can, to solve our economic problems; in fact, more dangerous for the future of our eco­ rather than exercise restraint. The "good it has added to our economic woes. nomic system the longer they last. guys" were hurt by not getting increases as The original purpose of the act was When controls are removed, I agree there fast as possible. Many businessmen have told to protect the consumer from the rising will be some wage and price increases-some me that they will not reduce prices for fear large and some very fast--as the market that a new freeze will catch them with their cost of living through temporary tight moves to the adjustment levels necessa.ry to prices down. Federal controls over our traditional free enterprise system in determining wages attract capital and labor and to ration scarce ON THE ROAD TO A CENTRALLY MANAGED resources. ECONOMY and prices. The act has failed miserably. But who wm be sending these prices up? Wage and price controls have not halted The market. Industrial and consumer pur­ There is no question that, under the aegis inflation; instead, they are contributing chasers will be signalling "more" or "less" of of controlled wage and price behavior, the a particular good or service, and the market government would find itself deciding what to it. will be sending resources to the most efficient products and services companies, industries I believe that the American economy users. · and regions can produce, and at what level. will fare much better under the free en­ It would assure· that the nation is squarely terprise system and the law of supply LONG-RANGE CONTROLS HURT THE POOR on the road to a centrally managed economic and demand. Only a free functioning There are contentions that price increases system. following de-control will hurt the poor much I believe that wage/price controls can help economy will bring us out of the serious more than the rich. By definition this is attack inflation in the short run if controls economic dilemma we are faced with true. Price increases do hurt the poor. But, are exercised vigorously, fairly and broadly. today. I again urge my colleagues to al­ if society wishes to a.id those with lower But any favorable impact 1s always short­ low the Economic Stabilization Act to be incomes, it should do so by means other than lived (as Europe and we have shown). And phased out as quickly as possible. wage and price controls. Long term controls when their usefulness has ended, controls Mr. BURKE of Florida. Mr. Speaker, I directly hurt the poor by driving low markup should be abandoned. thank my colleague from California for items from the shelves, by affording those It is easy to get in, but so hard to get out, yielding to me. with higher incomes opportunities to beat as we are witnessing now. Mr. Speaker, in August of 1971, Presi­ the system, and by increased unemployment Let's get out now. for marginal workers. dent Nixon, in an abortive effort to halt Wage and price controls a.re a dangerous Mrs. HOLT. Mr. Speaker, for 21h years, the inflationary spiral that really com­ method to work on the income distribution our economic system has been saddled menced just prior to President Kennedy's problem. with a variety of wage-price controls. assassination and then really ignited as CONTROLS CAN'T SOLVE SHORTAGES After four phases and several freezes, the a "skyrocket" under the Johnson "guns Shortages (fuel, paper, steel, oils, fiber, time has come to consider the future of and butter" philosophy, instituted wage etc.) are being used as reasons for continued these policies and assess what we have and price controls. We did this because controls. But the prepetuation of controls is learned from this national experiment. of the continual demand of many in the not going to solve these problems. If any­ Historically, the rapid economic Congress for this action. thing, they wlll prolong the shortages because growth of the United States has been ac­ I personally reject the interference by of the lack of incentives to invest and complished by reliance on the forces of the Government in our Nation's market­ expand. places, unless such regulation is essen­ I believe that energy prices, too, should be supply and demand not by bureaucratic de-controlled. Yes, prices wlll increase. (They decisionmaking to determine the proper tial to prevent a fair and equal distribu­ are going to increase anyway, with controls.) levels of wages and prices. Our national tion of essential goods to the people. Price Yes, price increases wm be more rapid experience with economic regulations controls, or Government interference of without controls. But I also believe the during World War II, the Korean war, a free market has not proved successful solution to energy shortages wlll also come and the post Vietnam era, have indi­ in the past. Instead Government control faster as incentives are increased for supply cated that while controls may be effec­ and regulation has caused black market of energy, and as price serves its function of operations and shortages of what other­ rationing. tive during the short run, the bureauc­ racy cannot manage a complex economic wise might have been an adequate supply SELECTIVE DECONTROL? NO, NO INDUSTRY IS AN of the regulated goods to our Nation's ISLAND UNTO ITSELF system efficiently for long periods of time. At some point, controls begin to do a consumers. Selective de-control is also a dangerous Whatever happened to the economic alternative. This technique not only in­ disservice to consumers, business and creases distortions among industries and Government. There is abundant evidence thinking of the past, where the principles services of different sizes, but increases the that continued Government intervention of supply and demand were the regula­ distortion of the :flow of capital and labor in the economy has resulted in an inten­ tory forces that governed our free mar­ due to the effects of substitution, inter­ sification of problems rather than a re­ kets? Sensible free enterprise approaches dependencies and admintstratdve lags among duction. The cost of living in 1973 went have given away to our great liberal controlled and non-controlled sectors. up 8.8 percent. Many basic commodities planners, whose aim is toward more so­ No industry 1s an island unto itself. such a"" gasoline, lumber, and beef have cialism by cradle to the grave legisla­ Through wage/price controls and selective tion. Under this philosophy a handful de-control, the government 1s affecting the been in short supply and high demand. allocation process with blunt tools as All of this has occurred while our econ­ of elite bureaucratic planners will ulti­ opposed to letting the market decide where omy has been subjected to the economic mately substitute their ideas for those the most efficient utllization lies. stabilization program. which we enjoy today as free people. March 6, 1974 CONGRESSIONAL RECORD-HOUSE 5467 The truth of the matter is that these Mr. Speaker, although I am happy that into this field. The price and wage con­ planners are able to convince many, by the President too, recognizes the failure trols have failed to halt inflation and promising more while actually giving of the previous controls and the need to have been unsuccessful in stabilizing our less. Let us take some of our so-called remove the mandatory controls from our economy. cost-of-living increases. The truth is that economy, I do not believe that this can Inflation is caused by an increase in these raises always lag behind the cost be done in stages, as has been suggested the money supply which has resulted of living, and create higher tax brackets for the reason that I do not believe that from the Federal Government spending for those who earn more money. In other all will be treated fairly under the Presi­ more money than it has received in reve­ words, the American worker and tax­ dent's proposal, no matter how well nue. When we consider the cause of in­ payer is being duped, not helped, by the intended. The truth of the matter is, that flation, economic controls are actually an phoney mumblings of today's socialist I am convinced that we would all be abdication of fiscal responsibility, not planners and the bureaucratic hodge­ better off without controls. In fact, I am an exercise in fiscal problem solving. podge that has been created. a cosponsor of H.R. 881, which if enacted, Controls treat symptoms and not causes. The real tragedy is that unfortunately would declare it the sense of Congress Economic stability has not been the people fail to see that our Govern­ that the Economic Stabilization Act of achieved. We are experiencing serious ment is becoming more socialistic be­ 1970 should not be extended beyond its dislocations in our economy resulting in cause of the spread of liberal control in present termination date as set forth in shortages. When prices are held at an the Congress. It is our socialist planners, the law, namely on midnight of April 30, artificially low level, it causes consumers with their continual trial and error 1974. to buy at bargain prices on these con­ schemes and deficit spending approaches, Our Nation's economy, and the Amer­ trolled commodities while some sellers that is responsible for today's deficits ican people, are troubled enough with may be tempted to hold back supplies un­ and for the continual erosion of our inflation, the energy crisis and the con­ til they can receive higher prices. Some freedoms. tinued daily interference of the Federal sellers find it more advantageous to get Those tha.t say socialism is good for Government in our daily lives, and it will a more competitive price by exporting us, either don't know what socialism is therefore give me great pleasure to be their goods. Eventually, prices below a or they do not want to know. Everytime able to consign the Cost of Living Council market level discourage production and someone promises that the Government to history as the failure it was, and to low profits discourage capital investment. is giving you something you should re­ trust our destinies to the natural eco­ Shortages will disrupt any economy. In member that you are the Government-­ nomic forces of a free market in accord­ the long run manufacturers, workers, and you the people. ance with our American tradition. consumers are all hurt by a controlled On February 21 of this year the Presi­ Mr. ARCHER. Mr. Speaker, we have economy. dent proposed legislation which purports experienced the effect of price-and-wage We are presently experiencing short­ to provide for an orderly transition from controls since August 15, 1971, when ages in items ranging from steel to paper. mandatory controls and for monitoring these controls were suddenly imposed on The outlook for plastics and synthetic­ the economy until the end of 1975. our economy. An analysis of the effect of fibers does not look encouraging. We may If passed by Congress the aforemen­ these controls after 2 % years leads to soon experience severe shortages of tioned Economic Stabilization Act one conclusion: these controls have not cement, aluminum, fertilizer, and syn­ Amendments of 1974 would authorize worked. thetic rubber. the President to: Centuries ago the Roman Emperor I have supported legislation to repeal First, monitor compliance with com­ Diocletian faced the problem of inflation the Economic Stabilization Act earlier in mitments made by firms in connection and rising prices in the Roman Empire. this Congress. I have joined as a cospon­ with sector-by-sector decontrol actions; He issued an edict in 301 A.D. to stabilize sor of Mr. RoussELOT's resolution ex­ Second, review the programs and activ­ the economy by fixing prices and wages. pressing the sense of the House that these ities of Federal departments and agen­ A black market soon developed. Taxes controls should not be extended beyond cies and the private sector which may greatly increased and became more and their present expiration date of April 30, have adverse effects on supply and cause more oppressive. Finally, the government 1974. We must not extend these economic increases in prices and make recommen­ had to adopt more and more measures controls. If we do extend them, we are dations for changes to increase supply to control the lives and occupations of asking for severe problems in our econ­ and restrain prices; individual citizens in order to bring some omy. We need to return to a free market Third. review industrial capacity, de­ order out of the economic chaos. Dissat­ economy in order to achieve a sound mand, and supply in various sectors of isfaction increased and the economy grew economy. the economy, working with the industrial more troublesome for Diocletian and his Mr. ASHBROOK. Mr. Speaker, I am groups concerned and appropriate gov­ successors. pleased to join with Congressman Jmm ernmental agencies to encourage price Throughout history various govern­ RoussELOT in urging that the Economic restraint; ments have imposed controls over their Stabilization Act of 1970 not be extended Fourth, work with labor and manage­ respective economies. These controls when it expires on April 30. Our Nation ment in the various sectors of the econ­ were designed to solve some specific eco­ cannot afford a continuation of wage and omy having special economic problems, nomic problem, to provide a better dis­ price controls. as well as with appropriate government tribution of economic resources, or make Phases I through IV have brought agencies, to improve the structure of the economy perform more efficiency. chaos to our economy--shortages, busi­ collective bargaining and the perform­ These have been noble goals but eco­ ness closures and high interest rates. ance of those sectors in restraining nomic reform for the nations which have The problem of inflation, however, con­ prices; tried them. tinues to plague our Nation. Fifth, improve wage and price data The failure of economic controls on a I have fought against wage and price bases for the various sectors of the market economy is self-evident. The controls every step of the way. I opposed economy to improve collective bargain­ economy of each nation responds to sup­ these controls when they were first in­ ing and encourage price restraint; ply and demand, a process brought about troduced, I voted against their extension Sixth, conduct public hearings where by the decisions of consumers for cer­ appropriate to provide for public scru­ tain goods. When government bureau­ and I am now cosponsoring bills for their tiny of inflationary problems in various crats attempt to substitute their judg­ repeal. sectors of the economy; ment for the free decisions of the con­ It is time for Congress to rectify its Seventh, focus attention on the need sumers in the marketplace, the result mistake. Wage and price controls do not to increase productivity in both the pub­ has been economic chaos and confusion. work. It is time they were allowed to die. lic and private sectors of the economy; Economic controls fail not only to im­ Mr. CRANE. Mr. Speaker, it is high and, prove the performance of the economy time that wage and price controls were Eighth, monitor the economy as a but lead to a whole series of new prob­ ended. Such controls are the cause of whole by requiring, as appropriate, re­ lems. The misallocation of resources dis­ many of our cw·rent economic difficulties. ports on wages, costs, productivity, torts the operation of the market result­ not the cure for them. prices, sales, profits, imports, and ing in severe economic difficulties. President Nixon, in his 1968 campaign, exports. We need to study our recent venture went to great lengths to make it clear '5468 CONGRESSIONAL RECORD- HOUSE March 6, 1974 that he would not impose such controls crisis is caused solely by Government yers, bureaucrats, and accountants busy. if elected. He declared that: controls which make it possible for pulp What it has accomplished, however, is The imposition of price and wage controls to be exported at twice the domestic largely negative. With controls during during peacetime is an abdication of fiscal price. The cure advocated by both the the past several years we have seen con­ responsibility. Such controls treat symptoms paper companies and the Paperworkers sumer prices rise more than 8 percent, and not causes. Experience has indicated that Union is simple. Mr. Tonelli declares that retail food prices rise more than 16 per­ they do not work, can never be administered cent and wholesale prices rise more than equitably and are not compatible with a free the Cost of Living Council- economy. Must decontrol wages and prices--Prlces of 17 percent. pulp and paper products should be allowed Inflation cannot be solved by controls, Despite this insight, such controls have to rise in a free market. Paper companies but can only be compounded by them. been imposed. By this time it should be need profit levels that wm permit them to Economist Hans Senholz notes that: clear to all that controls do not stop in­ generate internal cash. A higher rate of re­ Infiation ts the creation of new money by flation, for inflation is caused by an in­ turn on investment is essential in order to monetary authorities. In more traditional crease in the money supply which has attract new additional capital if present terminology, it is the creation of money proceeded during the past period as the needs are to be met. that visibly raises goods prices and lowers Government has been spending far more The policy of controls is also leading the purchasing power of money.•.. It may to a number of other scarce items. Steel, take the form of 'simple inflation,' in which money than it has received in revenue case the proceeds of the new money issues and has, in fact, recorded the hugest for example, is now in very short supply accrue to the government for deficit spend­ deficits in our history. and may become scarcer in the days ing. Or it may appear as 'credit expansion,' While controls do nothing to stop in­ ahead. Plastics, which are derived basic­ in which case the authorities channel the flation, they do a great deal to cause seri­ ally from natural gas and petroleum, newly created money into the loan market. ous dislocations in our entire economy. present a dim outlook, as do synthetic . . . Both forms are inflation in the broader The policy of price controls on natural fibers. Shortages also loom ahead for sense and as such are willful and deliberate gas, for example, has increased the de­ aluminum, cement, fertilizer and syn­ policies conducted by government. mand for petroleum products, just as thetic rubber. The fact is that Government alone is keeping the price of electricity and other Unless controls are ended, Americans strictly accountable for inflation because forms of power artificially low has also may become accustomed to the repeated Government alone determines the money increased that demand. At the same time shortages faced by those who live under supply. If Congress continues to spend that Government kept the price of energy other managed economies. more money than it has, no amount of artificially low, it also limited the de­ It is important to remember that the "controls" on wages and prices within mand through artificial import quotas. imposition of wage and price controls is the economy can solve the inflation prob­ These, not the Arab boycott, are the real directly responsible for our current fuel lem. components of our current energy problems. The only way to achieve a sound econ­ crisis. An analysis prepared by the Senate omy, as President Nixon once seemed to Now, Americans are becoming aware Committee on Government Operations understand, is to permit the free market of the fact that many other shortages revealed that by September 1970, the to work. Perhaps our current shortages are developing in our economy. One of shortage had begun to take effect. The and high prices will help to educate these is in the area of paper products. National Petroleum Council warned that Americans to the fact that Government Shoppers in many parts of the country the country faced a deficit of 250,000 manipulation of the economy is the cause are finding it harder than ever to buy barrels per day of fuel oil during the of our current dilemma-and that only paper products and magazine publishers winters of 1970 and 1971. A House sub­ Government withdrawal from economic are scouring the world for enough stock committee investigated the fuel crisis controls can point in the direction of a to get through 1974. Commercial printers and heard, from Government and indus­ real solution. of catalogs and telephone books are try witnesses, a number of suggested Mr. BAKER. Mr. Speaker, all of us running out of inventories and Govern­ reasons for the short supply: tougher here in the House of Representatives are ment paper supplies are the lowest in environmental regulations were requir­ aware of the heavy toll that the current historJ. ing utilities to burn larger quantities of rate of inflation is taking on the Amer­ The reason for this situation is that cleaner fuels; atomic energy was far be­ ican taxpayer. Some people thought that paper manufacturers, operating under hind schedule; demand for energy was the Economic Stabilization Act would restrictive price controls, are dropping shooting up; international disruptions help in controlling this rate of inflation. less profitable lines and hope to export were decreasing crude oil imports. This act-enacted over President more of their products overseas. What did we do in response to this Nixon's opposition in 1970 and extended Price controls have caused low rates situation? The President imposed wage by Congress in May 1971-has furnished of return for paper sold in the United and price controls on the economy. Thus, the statutory authority for the various States, particularly for cheaper grades. fuel oil prices were frozen at off-season price control and freeze periods we have Low profits in the paper industry for the lows and gasoline prices at seasonal undergone for the last 2% years. Mr. past several years have discouraged capi­ highs. The result was to discourage the Speaker, I believe it is time for the tal investment, just as import quotas refining of fuel oil. Members of this body to face the facts. on petroleum discouraged the building of While Government price controls have Regulation of prices at a level where it new refineries. Now that demand-in kept the cost of oil artificially low, there­ is insufficiently profitable to produce the both the paper and the energy field­ by increasing demand, the general in­ particular product can only cause artifi­ is climbing, we are feeling the lack of flation of the economy has made the cost cial shortages. The shortage of beef in capital investment in recent years which of finding oil increasingly high. Between 1973 is an excellent example. This is has been directly caused by Government 1960 and 1970, the cost of drilling an what happens when the Federal Govern­ controls. In addition, the cost of environ­ average well in the United States rose ment dabbles with the economy. For a mental cleanup programs have hit paper­ from $55,000 to almost $95,000. Today, graphic illustra,tion I would like to call makers very hard and other shortages, drilling the average off-shore well costs the fold-out cover of the current News­ also caused by controls, such as chlorine more than $500,000, and the average well week to the attention of my colleagues. for bleaching, caustic soda for pulp proc­ in Alaska will run to more than $2 mil­ In 1973 I voted against the 1-year ex­ essing and starch to give paper firm­ lion. In addition, the chances of hitting tension of this act because it can only ness-have caused added difficulties. a productive well are only 1 in 8. If Gov­ hurt our economy. When our economy Paper industry spokesmen declare ernment continues to interfere in the falters, the American consumer pays the that Government controls have resulted economy, businessmen will have little in­ price. Mr. Speaker, this year I would in a "two-tiered" pricing system in which centive to make the huge investments again vote against any extension of the exported pulp and paper bring consid­ necessary. act. Setting maximum price ceilings over erably higher prices than that sold in What began with a total freeze of any product is certainly no way to assure the domestic market. wages and prices on August 15, 1971, has adequate production. I appeal to my col­ Discussing the paper shortage, Joseph evolved through a set of numbered phases leagues to consider the basic economic P. Tonelli, president of the United Paper­ into a highly complex system of regula­ law of supply and demand before they workers Union, notes that the paper tions that is keeping thousands of law- vote on any measure which may be tern- March 6, 1974 CONGRESSIONAL RECORD-HOUSE 5469 Porarily attractive, but which can only water by legislation. We must allow the am aware that most Commission reports stifle the economy. It is certainly time market mechanisms of labor and business end up on remote shelves in public li­ for this country to get back to our basic to restore the needed equilibrium to the braries and secondly, that most select free enterprise system. economy, instead of leaving it up to an committees wind up being permanent Mr. LANDGREBE. Mr. Speaker, any­ army of Washington bureaucrats. The committees with large staffs and even one who stfil believes that price controls only way to do this is to totally end all larger budgets. But such is not always can stop inflation is, I am afraid, beyond authority to impose wage and price con­ the case. President Johnson's Crime help. All one has to do is examine the trols by letting the Economic Stabiliza­ Commission-the challenge of crime in facts. On a 6-month average of the Con­ tion Act expire on April 30, 1974. a free society-per!ormed extremely sumer Price Index during 1970, before valuable work and made important con­ the imposition of wage and price con­ tributions. Its efforts paved the way and trols, the Consumer Price Index moved A NATIONAL TRANSPORTATION led directly to the 1968 Safe Streets Act downward and continued to do so until POLICY and other anticrime legislation. I hope controls where inflicted upon the econ­ that the same would be true of the rec­ omy in August of 1971. In the midst of The SPEAKER pro tempore. Under a ommendations of a new committee or the tough phase II era, during 1972, the previous order of the House, the gentle­ Commission on TransPQrtation. A select man from Washington (Mr. ADAMS) , is Consumer Price Index shifted to upward committee, for example could consist of heights and continued to rise to higher recognized for 30 minutes. the transportation experts on each of levels-far ascending those plains Mr. ADAMS. Mr. Speaker, this week the relevant House committees. reached in the preceding uncontrolled the Transportation Subcommittee of the A single trust fund for transportation. economy. House Committee on Appropriations is At present, we have an airport and air­ Solely on the basis of the graph [graph having hearings on our national trans­ ways trust fund and a highway trust not printed in RECORD] one would have to portation policy, and what it should be. fund and direct funding for waterways. conclude that the implementation of Chairman McFALL is to be commended The trust funds consist of revenues gen­ price controls have failed to extinguish for these worthwhile hearings, which I erated by users of the particular system inflation, but conversely have added fuel hope wm encourage DOT to come for­ and this system has led to intensive cap­ to inflation. Perhaps this conclusion is ward, at long last with a national trans­ ital development of parts of our trans­ oversimplified, because since mid-1972 portation policy, and that the House wfil portation while other parts have lan­ there have been other inflationary pres­ unify its approach to transportation. guished. sures working upon the economy, such I suggest the following policy be estab­ The trouble with single purpose allo­ as an increasing Federal budget deficit lished: A single national rate and reg­ cations is that they generate such mo­ and an expanding money supply of ulation policy. mentum and interest group support that roughly 7.4 percent. The Nation's transportation policy they become self-perpetuating. Further, The proponents of wage and price con­ should be directed. toward creating and and more costly to transportation as a trols have stood in this very Chamber maintaining a privately owned and op­ whole, they benefit certain segments of for almost 4 years and have argued that erated intermodal, interstate system reg­ the transportation industry at the ex­ controls are the panacea to stopping the ulated by the Federal Government in pense of an integrated, coordinated rise in prices. Their medicine has not only the public interest. The regulations transport system. The Interstate High­ been counterproductive in halting infla­ should be uniform for all modes and the way System, for example, has nearly put tion, but has created severe shortages degree of regulation should vary with the the eastern railroads out of business: One throughout the marketplace. Within the degree of monopolization existing at any year the New Haven Railroad made a lot last year, my constituents have been particular point in the system. Govern­ of money hauling sand, gravel, and ce­ flooding my office with letters telling me ment regulations should thus take into ment; shortly thereafter the same sand, of the material shortages they have been account the importance of both trans­ gravel, and cement was used to build a experiencing in everything from fertil­ portation and shipping units in a partic­ superhighway that helped propel the izers to petrochemicals, not to mention ular market, with competition allowed railroad into bankruptcy. other oil products. These shortages have to set individual prices above costs where A single transportation trust fund, resulted in periodic layoffs and unem­ neither shippers nor the industry have which would likely have to include new ployment during a period of an unprece­ power to control rates and quality of user charges-perhaps on shippers, rail service. Otherwise the rates wfil all be dented rise in the cost of living index. set publicly by governmental regulation. passengers and others-would not end Whenever tight controls are imposed The ICC should be given a period of time revenue problems in transportation. But upon the economy, shortages and dislo­ to demonstrate whether it can overcome it would lead to rational decisions on cations are bound to appear. Controls in­ its present regulatory lag; if not then the which mode, which function, which types duce shortages by infilcting artificial regulatory gystem should be restructured of transport vehicles and which functions price ceilings on products and materials so as to produce prompt and fair reg­ should be assisted financially. It would which make these items more econom­ ulation. also lead to decisions on a basis that ically attractive on the international would result in coordinated movement of market, thereby stimulating exports. A UNIFIED TRANSPORTATION BUDGET people and goods. The piecemeal ap­ Consequently, we have witnessed the ex­ A unified transportation budget would proach must be ended. porting of many materials to all parts show, for example, not only what the CONCLUSION of the world because they bring higher Coast Guard and the St. Lawrence Sea­ Mr. Speaker, I believe these recom­ prices, when there is a vital need for these way Development Corporation are spend­ mendations if carried out would bring an products in this country. Controls also ing as agencies, but what each transpor­ end to the present slightly chaotic regu­ provide no economic incentive to rein­ tation mode is receiving on a functional latory and legislative system we have for vest, research and develop, as has been basis, what it is recommended to re­ dealing with our national transportation so clearly illustrated with the oil and ceive under a coordinated systemwide network. I hope they will be given serious natural gas industries. As economy with approach, and what steps are being taken consideration by all my colleagues inter­ no economic incentive is an economy with to achieve that result. Further, budget ested in the future of American trans­ planners should look not at theoretical portation. no economic opportunity, which means economic models but at how Federal ex­ no new jobs and unemployment for penditures help or could help coordina­ thousands of marginal workers. tion of the various transport modes. It is the Congress that is to be blamed Transportation is a competitive industry NONRECIPROCAL TRADE ACT for the present state of our economy, in­ but much of it is regulated by the Fed­ The SPEAKER. pro tempore. Under a flation, shortages and the energy crisis. eral Government. Such regulation, along previous order of the House, the gen­ We must begin acting as responsible leg­ with financial assistance, must be even­ tleman from Pennsylvania

TITLE I ALLOCATIONS IN H.R. 69, THE ELEMENTARY AND SECONDARY EDUCATION AMENDMENTS OF 1974-COUNTY LOCAL EDUCATIONAL AGENCIES (LEA) ENTITLEMENTS ONLY

Percent increase/de­ Percent increase/de­ crease of crease of Fiscal Fiscal rm H.R. 69 m~ H.R. 69 over over over over fiscal fiscal fiscal fiscal year year 100 larges cities 1973 1974 H.R. 69 rm 1974 100 largest cities 1973 1974 H.R. i9 rm 1974 New York ______134, 030, 268 154, 373, 065 131, 217, 035 +15 -15 Tampa (Hillsborough) ••• ____ _ 1, 854, 995 1, 710, 489 4, 125,421 -8 +141 Bronx ____ _.______37, 044, 787 46, 234, 075 39, 298, 944 +25 -15 Wichita (Sedgwick).--······· 1, 697, 699 1, 937, 900 2,062,449 +14 +s Kings______57, 204, 807 67, 172, 700 57, 096, 768 +11 -15 Akron (Summit) ______Tucson (Pima) ______1, 902, 593 2, 237, 573 2, 380, 511 +18 New York ______27, 045, 188 26, 020, 783 22, 117,648 -4 -15 l, 172, 071 1, 380, 397 2,498,036 +18 +-+sf Queens______10, 890, 022 12, 786, 676 10, 868, 670 +17 -15 Jersey City (Hudson) ______4, 950, 713 6,086, 389 6, 356, 360 +23 +4 Richmond______1, 845, 465 2, 158, 831 1, 835, 005 +17 -15 Sacramento _____ •• ---·-_ •••• 3, 831, 005 4, 613, 718 5, 218, 670 +20 +13 Chicago (Cook)______43, 707, 229 51, 866, 527 52, 866, 976 +19 +2 Austin (Travis) .•••••••••••• _ 1, 052, 790 952, 542 1, 844, 306 -10 +94 Los Angeles ••• ---·------44, 943, 483 49, 867, 494 52, 746, 880 +11 +6 Richmond __ ------··-·····­ 2, 291, 787 2,450,360 2, 511, 893 +1 +3 Philadelphia______20, 643, 019 27, 131, 272 24, 852, 704 +31 -8 Albuquerque (Bernalillo) ••••• 1, 354, 259 1, 667, 013 2, 933, 095 +23 +76 Detroit (Wayne)______22, 136, 000 25, 933, 205 28, 942, 496 +17 +12 Dayton (Montgomery) ______2, 157, 238 2, 353, 612 2, 512, 649 +9 +1 Jfouston (Harris)______6, 281, 395 8, 019, 010 11, 024, 061 +28 +37 Charlotte (Mecklenburg) ••••• l, 611, 209 2, 448, 123 2,400, 399 +52 -2 '3altimore City County______10, 535, 957 12, 921, 187 11, 053, 777 +23 +9 St. Petersburg ~Pinellas). ___ _ 1, 050, 687 l, 061, 733 2, 269, 755 +1 +m Oallas______4, 146, 734 5, 110, 172 7, 327, 188 +23 +43 Corpus Christi Nueces) •••.•• 1, 874, 737 1, 696, 219 2, 941, 91S -10 +73 'DistrictofColumbia ______10,042,676 11,196,398 10,352,664 +12 -8 Yonkers (Westc ester) ______5, 496, 127 6, 201, 274 5, 271, 080 +13 -15 ·Cleveland (Cuyahoga)______9, 741, 004 12, 448, 365 10, 581, 106 +28 -15 Des Moines (Polk) ______1, 214, 720 l, 560, 867 1, 326, 736 -15 Grand Rapids (Kent) ______+29 'Indianapolis (Marion)______3, 062, 105 3, 169, 235 4, 361, 574 +4 +38 2, 003, 231 2, 545, 322 3,285,607 +27 +29 'Milwaukee______5, 012, 385 6, 349, 363 7, 724, 952 +27 +22 Syracuse (Onondaga) ______3, 122, 871 2, 884, 164 3, 103, 298 -8 +s San Francisco______4, 765, 937 4, 312, 040 4, 887, 120 -10 +13 Flint (Genesee) ______2, 665, 673 3,325, 702 3,920, 738 +z5 +18 San Diego______5, 376, 368 6, 643, 338 8, 825, 213 +21 +33 Mobile ______---·· l, 866, 731 3, 037, 523 4, 249, 565 -t-63 +40 San Antonio (Bexer)______5, 149, 849 5, 797, 673 9, 231, 729 +13 +59 Shreveport (Caddo) ______1, 640, 742 l, 484, 466 3, 249, 908 -10 +119 Boston (Suffplk)______7, 476, 341 8, 329, 899 7, 907, 340 +11 -5 Warren (Wayne)-See Detroit. 'Memphis (Shelby)______3, 789, 533 5, 489, 690 8, 399, 540 +45 +53 Providence______3, 545, 993 3, 595, 579 4, 622, 130 +1 +29 'St. Louis______5, 047, 776 5, 678, 370 6, 824, 879 +13 +20 FortWayne(Allen)______961,870 977,700 1,112,682 +2 +14 :New Orleans (Orleans)______4, 284, 298 5, 960, 408 9, 416, 467 +39 +58 Worcester, Mass ______• ______•• ______• ______••• ______•• ___ •••• f'hoenix (Maricopa)______3, 538, 338 3, 516, 739 6, 258, 400 -1 +78 Salt Lake City (Salt Lake)____ l, 657, 294 l, 975, 077 2, 352, 189 +19 +19 'Columbus (Franklin)______3, 588, 571 4, 099, 531 4, 342, 047 +16 -6 Gary (Lake)______2, 904, 556 3, 566, 029 3, 361, 370 +23 -6 Seattle (King) ______3, 709, 141 4, 417, 045 4, 989, 411 +19 +13 Knoxville (Knox)______1, 238, 178 l, 277, 118 2, 028, 267 +3 +59 Jacksonville (Duval)_------2, 185, 584 2, 585, 155 5, 411, 000 +18 +11 Madison (Dane)______751, 142 959, 055 l, 297, 255 +28 +35 Pittsburgh (Alleghany)______8, 451, 271 8, 651, 181 10, 680, 184 +2 +16 Virginia Beach______30, 524 906, 866 l, 174, 534 +2, 871 +30 Denver______3, 239, 429 3, 435, 624 3, 811, 680 -t-6 +u Spokane______l, 180, 227 1, 380, 542 1, 838, 184 +17 +33 Kansas City, Mo. (Jackson)___ 2, 261, 480 2, 562, 563 3, 633, 353 +13 +42 Kansas City (Wyandotte)_____ 1, 309, 972 1, 592, 036 1, 563, 168 +22 -2 Atlanta (Fulton-Dekalb)______4, 514, 348 5, 968, 175 6, 803, 157 +32 +14 Anaheim (Orange)______3, 575, 289 4, 423, 958 5, 762, 646 +24 +30 Buffalo (Erie)_------8, 495, 066 8, 732, 161 8, 189, 803 +3 -6 Fresno______4, 197, 369 4, 061, 527 6, 266, 109 -3 +54 Cincinnati (Hamilton)______4, 170, 298 4, 060, 561 5, 376, 877 -3 +32 Baton Rouge (East Baton Nashville (Davidson)______1, 465, 684 1, 716, 491 2, 831, 153 +17 +65 R!JUge)______1, 082, 957 1, 264, 284 2, 599, 325 +17 +106 San Jose (Santa Clair)______4, 283, 769 4, 973, 262 5, 324, 957 +14 +7 Springfield ______••••• ____ •• ·-··--·-·· ______•••••• ------•••••• ·····-···. __ ••••• Minneapolis (Hennepin)______4, 381, 434 5, 149, 435 4, 899, 424 +18 -5 Hartford______3, 571, 400 4, 207, 121 4, 770, 409 +18 +13 Fort Worth (Torrant) ______2, 214, 254 2, 433, 508 3, 435, 181 +10 +41 Santa Ana (Orange)-See Toledo (Lucas)______2, 088, 423 2, 149, 538 2, 365, 344 +3 +10 Anaheim. Portland (Midtenomoh)______2, 543, 724 2, 640, 706 3, 542, 131 +4 +34 Bridgeport _____ ••• _____ ••• ______-······-·-••• ___ .------·-······-·-_ •• _·-·····. Newark (Essex)______10, 938, 289 13, 220, 988 12, 588, 581 +21 -5 Tacoma (Pierce) ____ ------1, 608, 467 2, 040, 594 2, 645, 912 +27 +30 Oklahoma_------2, 336, 745 2, 826, 913 3, 027, 421 +21 +7 Columbus(Muscogee)______962,152 1,327,209 1,761,556 +38 +33 Oakland (Alameda)______6, 159, 904 6, 120, 938 7, 415, 999 -1 +21 J~ckson (Hmds)______1, 621, 749 2, 356, 830 3, 162, 9M +45 +34 louisville (Jefferson)______3, 180, 234 5, 031, 569 4, 276, 831 +58 -15 long Beach ______------______Lincoln (Lancaster)______416, 413 390, 269 471, 308 -6 +21 Lubbock, Tex ______752, 231 839, 472 2, 782, 607 +12 +112 Omaha (Douglas)______1, 946, 045 2, 244, 586 1, 959, 922 +15 -13 Rockford, Ill. (Winnebago)____ 1, 309, 127 1, 338, 899 1, 542. 849 +2 +15 Miami______3, 599, 793 4, 330, 621 8, 513, 516 +20 +97 Paterson, N.J. (Passaic)._____ 3, 442, 231 4, 166, 031 3, 817, 208 +21 -fl Tulsa (Tulsa) __------1, 668, 945 1, 869, 674 2, 278, 298 +12 +22 Greensboro (Guifford)______1, 172, 448 1, 675, 956 1, 678, 158 +43 0 Honolulu(Oahu) ______2,955,720 3,419,497 4,326,469 +16 +27 Riverside, CaliL______2, 757, 415 3, 079, 943 4, 148, 912 +12 +31 El Paso______1, 570, 140 1, 921, 119 4, 477, 087 +22 +133 Youngstown (Mahoning)______1, 110, 798 1, 220, 582 1, 344, 934 +10 +10 St. Paul, Minn. (Ramsey)_____ 2, 176, 450 2, 395, 789 2, 388, 145 +10 -0 Fort Lauderdale (Broward)____ l, 379, 747 1, 453, 948 3, 134, 085 +5 +ns Norfolk______3, 172, 933 3, 100,406 3, 249, 185 -2 +5 Evansville (Vanderboro)...... 734, 392 664, 475 835, 810 -10 +26 Birmingham (Jefferson)______3, 619, 136 4, 447, 988 6, 192, 006 +23 +39 Newport News ••••.•••••••• _ 777, 588 1, 016, 433 1, 236, 715 +30 +22 Rochester (Monroe).______4, 710, 346 5, 665, 322 4, 815, 521 +20 -15 March 6, 1974 CONGRESSIONAL RECORD - HOUSE 5475 LABOR-FAIR WEATHER FRIEND-V tions made do not hinder our relations with the captains of industry. It's all very this man. The SPEAKER pro tempore. Under a impressive. But I have come to wonder if Fraternally, the arrogance ths,t brought Richard previous order of the House, the gentle­ W. F. KELLER, man from Texas (Mr. GONZALEZ) is rec­ President, San Antonio Building & Con­ Nixon so low has not also penetrated into ognized for 5 minutes. struction Trad.es Council. the penthouse of labor; whether labor Mr. GONZALEZ. Mr. Speaker, in a has also become so enamored of power I do not know if this inquiry was ever that it cannot recognize the difference great organization one of the most difii­ answered or not; if it was, I never re­ cult of all problems is to keep headquar­ between an independent friend and a ceived a copy of the reply. fanatic who can only bring harm to all ters in contact with the field. Big com­ But the San Antonio council was not panies go to great lengths to know what he touches. Maybe the penthouse men­ the only one that wondered what was go­ tality has seized the house of labor too; is happening with their field operations, ing on. The Texas AFL-CIO ofiicers also because they know that if headquarters maybe its moguls do not really know any wanted to know what had happened; more who their true friends are. That does not know what is happening, mis­ they hoped that the Labor Council for takes that create huge losses can be could explain why in this case the tail Latin American Advancement had not wagged the dog. I will remember that; made, without the headquarters people hung me and then decided to hold a trial knowing about it until after disaster has I will remember for a long time who my later. In fact, that is exactly what hap­ friends have been, and who they are. I struck. The same is true in labor. pened. Business and labor alike hold all kinds wish that the moguls who seem not to Here is what the Texas AFL-CIO ofii­ have listened to their own members of meetings and conventions to try to cers had to say: keep the communications lines open; af­ would have remembered who their friend TEXAS AFL-CIO, was. ter all they share the common problem Austin, Tex., January 3, 1974. of trying to keep the penthouse in­ Mr. RAY MENDOZA , formed, and the field folks likewise in­ Chairman, Labor Council for Latin American GHANA'S 17TH INDEPENDENCE formed. Advancement, Washington, D.C. ANNIVERSARY But this does not always work. DEAR BROTHER MENDOZA: We just read your In the case that I have been discussing press release dated December 19, 1973, vigor­ The SPEAKER pro tempore. Under a ously condemning Congressman Henry B. previous order of the House, the gentle­ in the last few days, big labor attacked Gonzalez for his union-busting attitude in me without informing itself of just how man from Michigan : to the Committee on Appropria­ tional Safety and Health Act of 1970; to the Committee on Ways and Means. tions and ordered to be printed. Committee on Education and Labor. By Mr. LEHMAN: 1992. A letter from the President of the By Mr. CAREY of New York (for him­ H.R. 13283. A bill to amend the Internal United States, transmitting proposed supple­ self, Mr. BAI>n.Lo, Mr. BAFALIS, Mr. Revenue Code of 1954 to provide a 20-percent mental appropriations for fiscal year 1974 for BELL, Mr. BROWN of California., Mr. tax credit for individuals for home improve• the Department of Justice (H. Doc. No. 93- CLAY, Ms. COLLINS of Illinois, Mr. ments, home repairs, furnishings a.nd appll­ 228); to the Committee on Appropriations CRONIN, Mr. DE LUGO, Mr. En.BERG, ances; to the Committee on Ways and Meanll. and ordered to be printed. Mr. FASCELL, Mr. FORD, Ms. GREEN Of By Mr. MINISH: 1993. A letter from the President of the Oregon, Mr. HAWKINS, Mr. HELSTO­ H.R. 13284. A bill to amend the PubliO United States, transmitting a proposed sup­ SKI, Mr. HICKS, Ms. HOLTZMAN, Mr. Health service Act to improve the national plemental appropriation for fiscal year 1974 KOCH, Mr. MADDEN, Mr. MOAKLEY, cancer program and to authorize appropria• for the U.S. Information Agency (H. Doc. No. Mr. MURPHY of New York, Mr. MUR­ tions for such program for the next 3 fiscal 93-229): to the Committee on Appropriations THA, Mr. PEPPER, Mr. ROSENTHAL, and yea.rs: to the Committee on Interstate and and ordered to be printed. Mr. SARBANES) : Foreign Commerce. 1994. A letter from the Assistant Secretary H.R. 13272. A bill to amend the Publlc By Mr. MOAKLEY: of the Navy (Installations and Logistics), Health service Act to provide for the estab­ H.R. 13285. A bill to amend· title 4, chap• transmitting a report of the facts and justi­ lishment of a National Institute of Aging ter 4, section 4-904 of the District of Colum­ fication for the transfer of the Fleet Missile to the Committee on Interstate and Foreign bia Code in order to eliminate additional un­ Systems Analysis and Evaluation Group, Commerce. compensated work time of the officers of the Corona, Calif., pursuant to section 613(a) of By Mr. CAREY of New York (for him­ Metropolitan Police Department; to the Com­ Public Law 89-568 (10 U.S.C. 2662, note): to self, Ms. GRASSO, Mr. STOKES, Mr. mittee on the District of COlumbia. the Committee on Armed services. TIERNAN, Mr. WALSH, Mr. WOLFF, By Mr. OBEY: 1995. A letter from the Administrator, U.S. Mr. WON PAT, and Mr. YATRON) : H.R. 13286. A bill to remove Senators and Small Business Administration, transmitting H.R. 13273. A bill to amend the Public Representatives from the application of sec­ a draft of proposed legislation to amend the Health Service Act to provide for the estab­ tion 225 of the Federal Salary Act of 1967 Small Business Act; to the Committee on lishment of a National Institute of Aging; pertaining to the Commission on Executive, Banking and Currency. to the Committee on Interstate and Foreign Legislative, and Judicial Salaries, to provide 1996. A letter from the Administrator, Commerce. for cost-of-living adjustments in the sa.laries Small Business Administration, transmitting By Mr. COLLIER: of such officials, and for other purposes; to a draft of proposed legislation to clarify the H.R. 13274. A bill to exempt parts and ac­ the Committee on Post Office and Civil authority of the Small Business Administra­ cessories to be used on local transit buses Service. tion and for other purposes; to the Com­ from Federal excise tax: to the Committee on By Mr. PEPPER: mittee on Banking and Currency. mittee on Veterans' Affairs. H.R. 13287. A blll to amend title 38, United 1997. A letter from the Secretary of Health, By Mr. DORN: States Code, to increase the limitations With Education, and Welfare, trar..smitting a. draft H.R. 13275. A blll to a.mend title, 38 United respect to direct loans to veterans from of proposed legislation to amend the JuvenUe States Code, to extend eligibllity for auto­ $21,000 to $25,000; to the Committee on Vet­ Delinquency Prevention Act to establish a moblle adaptive equipment to certain addi­ erans' Affairs. new program of research and demonstrations, tional veterans; to the Committee on Vet­ H.R. 13288. A bill to expand the authority with particular emphasis on problems of erans' Affairs. of the Veterans' Administration to make Tuna.way children, and !or other purposes; H.R. 13276. A b111 to amend title 38, United direct loans to veterans where private capi­ to the Committee on Education and Labor. States Code, to provide an annual clothing tal ls unavallable at the statutory interest 1998. A letter from the secretary of the allowance to certain veterans who, because of rate; to the Committee on Veterans' Affairs. Interior, tra.nsmlttlng a report on study of a a service-connected d1sabllity, wear a pros­ By Mr.REID: 90-mile segment of the Clarion River in thetic appliance or appliances which tend to H.R. 13289. A blll to provide financial as­ Pennsylvania recommending against its in­ wear out or tear their clothing; to the Com­ assistance to the States for improved edu­ clusion in the National Wild a.nd Scenic mittee on Veterans' Affairs. ca.tlonal services for handicapped children; Rivers System, pursuant to 82 Stat. 906; to H.R. 18277. A b111 to amend tltle 38, United to the Committee on Education and Labor. 5484 CONGRESSIONAL RECORD-SENATE March 6, 1974

By Mr. REUSS: By Mr. TIERNAN (for himself, Mr. other purposes; to the Committee on Agri­ H.R. 13290. A b111 to provide that the BADILLO, Mr. BERGLAND, Ms. COLLINS culture. money designated on 1972 tax returns to be of Ill1nois, Mr. CORMAN, Mr. EDWARDS H.R. 13307. A bill to require fl.ling of do­ made available to a specified political party of California, Mr. HOGAN, Ms. HOLTZ­ mestic food price impact statement in con­ which (after such designation) has been MAN, Mr. MOAKLEY, Mr. PFPPER, Mr. nection with exports of U.S. commodities; to directed by law to be used otherwise, shall RIEGLE, Mr. ST GERMAIN, Mr. SAR­ the Committee on Banking and Currency. remain in the general fund of the Treasury BANES, Ms. SCHROEDER, and Mr. By Mr.REID: unless redesignated to the Presidential Elec­ VIGORITO): H.R. 13308. A bill to investigate the rela­ tion Campaign Fund by the taxpayer; to the R.R. 13298. A bill to protect the environ­ tionships between those persons engaged in Committee on Ways and Means. ment and conserve natural resources by stim­ the provision of accounting services to ma­ By Mr. ROUSH: ulating the recovery, reuse, and recycling of jor oil companies and said companies, to re­ H.R. 13291. A bill to amend the Internal waste materials and by decreasing the quan­ quire integrated major oil companies to file Revenue Code of 1954 to allow the rapid tity of materials moved in commerce which with the Federal Trade Commission account­ depreciation of expenditures to rehabilitate must be disposed of ultimately as waste; to ing reports for each and any of their four low-income rental housing incurred after promote and regulate commerce by identify­ levels of operation, and for other purposes; December 31, 1974; to the Committee on ing and establishing standards and guide­ to the Committee on Interstate and Foreign Ways and Means. lines for the proper management of waste Commerce. By Mr. ROYBAL: which poses a substantial hazard to human By Mr.ROE: H.R. 13292. A b111 to amend title II of the health or the environment, and for other H.R. 13309. A bill to a.mend the Small Busi­ Social Security Act to increase to $3,600 the purposes; to the Committee on Interstate ness Act to expand the definition of small amount of outside earnings which (subject and Foreign Commerce. business concern to include agribusinesses; to further increases under the automatic By Mr. TIERNAN (for himself, Mr. to the Committee on Banking and Currency. adjustment provisions) is permitted each BADILLO, Mr. BUCHANAN, Ms. COLLINS By Mr. HOSMER: year without any deductions from benefits of Illinois, Mr. CORMAN, Mr. ED­ H.R. 13310. A bill to establish a national thereunder; to the Committee on Ways and WARDS of California, Mr. HOGAN, Mr. policy for a comprehensive program of re­ Means. PEPPER, Mr. RIEGLE, Mr. ST GERMAIN, search and development in energy sources By Ms. SCHROEDER (for herself and Mr. SARBANES, Ms. SCHROEDER, Mr. and energy utmzation technologies; to the Mr. EVANS of Colorado): SYMINGTON, and Mr. VIGORITO): Committee on Interior and Insular Affairs. R.R. 13293. A bill to provide that the proj­ H.R. 13299. A b111 to protect the environ­ By Mr. HUBER (for himself, Mr. ect referred to as the Chatfield Dam and ment and conserve natural resources by DEVINE and Mr. GUYER) : Lake on the South Platte River, Colo., shall stimulating the use of recycled or recyclable H. Con. Res. 441. Concurrent resolution ex­ hereafter be known and designated as the materials by effecting rate changes in the pressing the sense of Congress with respect "Edwin C. Johnson Da.m and Lake"; to the movement of these materials by common to the missing in action in Southeast Asia; Committee on Public Works. carrier, and for other purposes; to the Com­ to the Committee on Foreign Affairs. By Mr. STEELMAN: mittee on Interstate and Foreign Commerce. By Mr. DIGGS: H.R. 13294. A b111 to a.mend the Federal By Mr. STUBBLEFIELD: H. Res. 957. Resolution to provide funds Food, Drug, and Cosmetic Act to clarify the H.R. 13300. A bill to amend the Federal for the expenses of the investigations and authority of the Secretary of Health, Educa­ Trade Commission Act (15 U.S.C. 41) to pro­ studies authorized House Resolution 162; tion, and Welfare with respect to foods for vide that under certain circumstances ex­ to the Committee on House Administration. special dietary use; to the Committee on In­ clusive territorial arrangements shall not be By Mr. McKINNEY: terstate and Foreign Commerce. deemed unlawful; to the Committee on In­ H. Res. 958. Resolution disapproving the By Mr. STEED: terstate and Foreign Commerce. recommendations of the President with re­ H.R. 13295. A bill to amend the Public By Mrs. BOGGS: spect to the rates of pay of Federal omcials Works and Economic Development Act of H.R. 13301. A b111 to establish a trust fund transmitted to the Congress in the budget 1965 to extend the authorizations for a 5- in the Treasury of the United States to be for the fiscal year ending June 30, 1975; year period, and for other purposes; to the known as the National Elderly and Handi­ to the Committee on Post omce and Civil Committee on Public Works. capped Housing Load Fund, and for other Service. By Mrs. SULLIVAN (for herself, Mr. purposes; to the Committee on Banking and CLARK, Mr. ASHLEY, Mr. DINGELL, Mr. Currency. DOWNING, Mr. STUBBLEFIELD, Mr. By Mr. COLLINS of Texas: MEMORIALS MURPHY of New York, Mr. JONES of H.R. 13302. A bill to amend section 1201 Under clause 4 of rule XXII, memorials North Carolina, Mr. ANDERSON of of title 18 of the United States Code to im­ were presented and referred as follows: California, Mr. KYROS, Mr. EcK­ pose penalties on the acceptance of a benefit HARDT, Mr. GINN, Mr. STUDDS, Mr. extorted through kidnaping and on assist­ 368. By the SPEAKER: Memorial of the GROVER, Mr. MOSHER, Mr. LOTT, and ing in the distribution of such a benefit; to Legislature of the Senate of Colorado, relative Mr. PRITCHARD) : the Committee on the Judiciary. to the observance of Veterans Day on No­ H.R. 13296. A bill to authorize appropria­ By Mr.KOCH: vember 11; to the Committee on the Judi­ tions for the fiscal year 1975 for certain ciary. H.R. 13303. A bill to amend title 5, United 369. Also, memorial of the Legislature of maritime programs of the Department of States Code, to provide that persons be Commerce; to the Committee on Merchant the State of Georgia, relative to a constitu­ given access to records concerning them tional amendment guaranteeing legal protec­ Marine and Fisheries. which are maintained by Government By Mr. SYMMS (for himself, Mr. tion to the unborn; to the Committee on the agencies; to the Committee on Govern­ Judiciary. TEAGUE, Mr. SEBELIUS, Mr. FLYNT, ment Operations. Mr. DEVINE, Mr. COLLINS of Texas, H.R. 13304. A b111 to amend title 5, United Mr. BAUMAN, Mr. STEIGER of Arizona, States Code, to provide that persons be PRIVATE BILLS AND RESOLUTIONS Mr. PRICE of Texas, Mr. !CHORD, Mr. given access to records concerning them BAKER, Mr. ZION, Mr. BRINKLEY, Mr. which are maintained by Government Under clause 1 of rule XXII, private MOORHEAD of California, Mr. FROEH­ agencies; to the Committee on Government bills and resolutions were introduced and LICH, Mr. LUJAN, Mr. BLACKBURN, Operations. severally referred as follows: Mr. DAN DANIEL, Mr. YOUNG of By Mr. MOORHEAD of Pennsylvania: By Mr. STUBBLEFIELD: South Carolina, Mr. SA'ITERFIELD, H.R. 13305. A bill to authorize the disposal H.R. 13311. A bill for the relief of Yan Mr. COLLIER, Mr. SNYDER, Mr. SHUS­ of graphite from the national stockpile and Kwong Yuen; to the Committee on the Judi­ TER, Mr. TAYLOR of Missouri, and Mr. the supplemental stockpile; to the Commit­ ciary. DEL CLAWSON) : tee on Armed Services. By Mr. DOWNING: H.R. 13297. A b111 to repeal the Occupa­ By Mr.NIX: H.J. Res. 931. Joint resolution restoring tional Safety and Health Act; to the Com­ H.R. 13306. A bill to amend the Food citizenship posthumously to Gen. R. E. Lee; mittee on Education and Labor. Stamp Act of 1964, as amended, and for to the Committee on the Judiciary.

SENATE-Wednesday, March 6,1974 The Senate met at 10 a.m. and was Eternal God, our Father, in these hearing Thy voice grant us the will to called to order by Hon. SAM NUNN, a strange and troublous days, demanding obey Thee. Help us always as servants Senator from the State of Georgia. great leadership, may we in this place of all the people to choose the highway be very conscious of the clear and un­ which leads to justice and peace. May we mistakable leadership of Thy spirit. come to the close of the day with a PRAYER richer experience of Thy presence, a surer The Chaplain, the Reverend Edward When we are unsure, may we seek Thy mastery of ourselves and a deeper sym­ ~. R. Elson, D.D., offered the following guidance and inwardly hear Thee say, pathy with struggling humanity. prayer: "This is the way, walk ye in it." And In Christ's name we pray. Amen.