25464 EXTENSIONS OF REMARKS July 28, 1975

CONFIRMATIONS to be assigned to a position of im portance To be lieutenant general and responsibility designated by the Presi- Executive nominations confirmed by dent under subsection (a) of section 8066, Maj. Gen. Devol Brett, xxx-xx-xxxx FR (ma- the Senate July 28, 1975: jor general, R egular A ir F orce), U .S . A ir in grade as follows: Force. U.S. AIR FORCE To be lieutenant general The following officer under the provisions The following officer under the provisions M aj. Gen. Charles E. Buckingham, xxx-xx-x... of title 10, United States C ode, section 8066, of title 10, United States C ode, section 8066, xxx-... FR (major general, R egular A ir Force), to be assigned to a position of importance to be assigned to a position of im portance U.S. Air Force. and responsibility designated by the Presi- and responsibility designated by the Presi- The following officer under the provisions dent under subsection (a) of section 8066, dent under subsection (a) of section 8066, of title 10, United States C ode, section 8066 in grade as follows: in grade as follows: to be assigned to a position of im portance To be general To be lieutenant general and responsibility designated by the Presi- Lt. Gen. Felix M . R ogers, FR dent under subsection (a) of section 8066, xxx-xx-xxxx Maj. Gen. Kenneth L. Tallman, xxx-xx-xxxx (major general, Regular A ir Force), U.S. A ir (major general, R egular A ir Force), U.S. A ir in grade as follows: Force. Force. To be lieutenant general The following officer under the provisions The following officer under the provisions Maj. Gen. Wilbur L. Creech, xxx-xx-xxxx FR of title 10, United States C ode, section 8066 of title 10, United States C ode, section 8066, (brigadier general, R egular A ir Force), U.S. to be assigned to a position of importance to be assigned to a position of im portance Air Force. and responsibility designated by the Presi- and responsibility designated by the Presi- The following officer under the provisions dent under subsection (a) of section 8066, in dent under subsection (a) of section 8066, in of title 10, United States C ode, section 8066, grade as follows: grade as follows: to be assigned to a position of im portance To be lieutenant general To be general and responsibility designated by the Presi- M aj. Gen. John F. Gonge, xxx-xx-xxxx FR Lt. Gen. Robert E. Huyser, xxx-xx-xxxx FR dent under subsection (a) of section 8066, in (major general, Regular A ir Force), U.S. A ir (major general, R egular A ir Force), U.S. A ir grade as follows: Force. Force. To be lieutenant general The following officer under the provisions The following officer under the provisions Maj. Gen. Thomas W. Morgan, xxx-xx-xxxx of title 10, United States C ode, section 8066, of title 10, United States C ode, section 8066, FR (major general, R egular A ir Force), U.S. to be assigned to a position of im portance to be assigned to a position of im portance Air Force. and responsibility designated by the Presi- and responsibility designated by the Presi- The following officer under the provisions dent under subsection (a) of section 8068, dent under subsection (a) of section 8066, in of title 10, United States C ode, section 8066, in grade as follows: grade as follows: to be assigned to a position of im portance To be lieutenant general To be general and responsibility designated by the Presi- M aj. Gen. R aymond B. F urlong, xxx-xx-x... Lt. Gen. Daniel James, Jr., xxx-xx-xxxx FR dent under subsection (a) of section 8066, in xxx... 7 F R (b rigad ier gen eral, R egu lar A ir (major general, R egular A ir Force), U.S. A ir grade as follows: Force) , U.S. Air Force. Force. To be general The following officer under the provisions T he following officer for appointment as Lt. Gen. William J. Evans, xxx-xx-xxxx FR of title 10, United States C ode, section 8066 S u rgeo n G en eral o f th e A ir F o rce in th e (major general, R egular A ir Force), U.S. A ir to be assigned to a position of im portance grade of lieutenant general under the pro- Force. and responsibility designated by the Presi- visions of section 8036, title 10 of the United dent under subsection (a) of section 8066, in States C ode: The following officer under the provisions of title 10, United States C ode, section 8066, grade as follows: Maj. Gen. George E. Schafer, xxx-xx-xxxx FR To be lieutenant general (brigadier general, R egular A ir Force, M edi- to be assigned to a position of im portance cal), U.S. Air Force. and responsibility designated by the Presi- M aj. Gen. George G. Loving, Jr., xxx-xx-x... The following officer under the provisions dent under subsection (a) of section 8066, in xxx-... FR (major general, R egular A ir Force), of title 10, United States C ode, section 8066, grade as follows: U.S. Air Force. to be assigned to a position of im portance To be lieutenant general The following officer under the provisions of title 10, 'United States Code, section 8066, and responsibility designated by the Presi- M aj. Gen. George Rhodes, xxx-xx-xxxx FR dent under subsection (a) of section 8066, (major general, R egular A ir Force), U.S. A ir to be assigned to a position of im portance in grade as follows: Force. and responsibility designated by the Presi- To be lieutenant general The following officer under the provisions dent under subsection (a) of section 8066, in grade as follows: Maj. Gen. William Y. Smith, xxx-xx-xxxx FR of title 10, United States C ode, section 8066, (brigadier general, R egular A ir Force), U.S. to be assigned to a position of im portance To be lieutenant general Air Force. and responsibility designated by the Presi- M aj. Gen. Robert T. Marsh, xxx-xx-xxxx FR The following officer under the provisions dent under subsection (a) of section 8066, in (brigadier general, R egular A ir Force), U.S. of title 10, United States C ode, section 8066, grade as follows: Air Force.

EXTENSIONS OF REMARKS

THE MARIANA ISLANDS are the specific and worthwhile benefits S tates citizenship and sovereignty-for the which the United States would receive northern M ariana island chain in the west- from this new association?" ern Pacific. HON. HARRY F. BYRD, JR. A fter perfunctory moments of debate with The Senior Senator from Virginia is in fewer th an 2 5 m em bers on th e floor, th e OF VIRGINIA thorough agreement with the Times that House of R epresentatives gave its approval IN'THE SENATE OF THE UNITED STATES the burden of proof is on the advocates by voice vote last week to the country's first Monday, July 28, 1975 of annexation. To date, the Senator from territorial annexation since 1925. T he A d- Virginia has not heard a convincing case. ministration is seeking equally rapid and un- Mr. HARRY F. BYRD, JR. Mr. Presi- I ask unanimous consent that the edi- questioning action by the S enate. dent, the Times, in an editorial torial from of Mon- T here are countless questions about this today, called attention to what it calls whole issue which have yet to be considered day, July 28, captioned "Destiny Un- by more than a handful of the C ongress, in- "a far-reaching strategic commitment manifest" be printed in the Extension of v o lv in g th is co u n try 's relatio n s w ith th e that Americans may come to regret." Remarks. U nited N ations and with the other peoples The Times is referring to the proposal There being no objection, the editorial of the Pacific T rust T erritory, not to m en- to grant Commonwealth status-hence was ordered to be printed in the RECORD, tion the entire defense and strategic posture U nited S tates citizenship and sover- as follows: of the U nited S tates in the Pacific. "Commonwealth" Is a vague juridical term, eignty-for the M ariana Islands in the [From the New York Times, M onday, but under the covenant approved by a vast western Pacific. July 28, 1975] These islands have a population of majority of the M arianas population in a DESTINY UNATANIFEST plebiscite last month, the islands would re- 14,000 persons. W ith a haste that is both unnecessary and ceive financial and legal privileges even more The N ew York Times states that "it om inous, the C ongress is m oving toward generous in some ways than those accorded seems to us that the burden of proof rubber-stam p approval of a far-reaching the other American commonwealth, Puerto falls upon advocates of annexation to strategic com m itm ent that A m ericans m ay R ico. T he strangest feature in the present justify why the United States should ex- come to regret. T his is the convenant grant- discussion-or lack thereof-is the ease with tend its responsibilities in this way. What in g co m m o n w ealth statu s-h en ce U n ited which a political change of this m agnitude July 28, 1975 EXTENSIONS OF REMARKS 25465 1s contemplated; many legislators seem to re­ would force us to depend on Russia for nlzations Have sought to increase their in­ gard lt as the most natural development ln a defense-related metal. This Is viewed come by investing 1n the very industries the world for the United States simply to ex­ · as a serious threat to national security. they criticize most. tend citlzensh1p and sovereignty r.o another Opponents say U.N. sanctions were al­ Stocks and bonds ot companies tnvolved people who have asked for lt. in offsho.re oil drilllng, the Alaska pipeUne, It seems to us that the burden of proof ways improper became international logging, strip minlng. pesticides and nuclear falls upon advocates of annexation to ju.stij;y peace was not at stake. They believe an power-to name a few-have appeared in en­ why the United States should extend its embargo against Rhodesia would be Vironmental group investment portfoUos. responsibilities 1n this way. What are the hypocritical because we now trade openly The Audubon Society's quest tor capital specific and worthwhile benefits which the with other unenlightened governments. has gone beyond paper securities Into con­ United States would receive from this new Observers predict that under the pro­ tracting for the extraction of oil and gas from association? Perhaps eventually a convincing posed ban, manufacturers would still its largest wildlife sanctuary. case will be made. A series of legal steps Ues purchase Rhodesian chromite and ferro­ Audubon's wells are located in the society's ahead before the change can be effected. In­ 26,861-acre Paul J. Rainey Wildlife Sanctu­ cluding far from automatic approval by the chrome through third parties, and at in­ ary-a maze of bayou and marshland in United Nations, which assigned Pacific trust flated prices. They say our present stock­ southwest Louisiana that serves as wtn~r­ obligations to the United States in 1947. pile cannot meet growing demands, so ing grounds for hundreds of thousands of But this is the first and last formal oc­ we need Rhodesian imports as an on­ snow and blue geese. casion for Congress to express its will on going supplement. Although small by oil industry standards, joining the Marianas to the United States. How the Congress 1·esolves this con­ the society's oil and gas operation last year If the Senate allows itself to be steam-rolled trovel'SY depends on how it defines the returned about $300,000 in mineral rights tnto a Uttle-understood. proposition now, it question-as a matter of international revenue paid by Cities Service and other ex­ will be on weak ground to complain once the tractors. And the income has been rising problems arise. obligation, humanitarian concerns, or with the upward splral in energy prices. pragmatic needs. "It's all done with the utmost care to do no damage to the environment whatever. We have strict contracts With requirements to protect the environment," said Audubon Vice RHODESIAN CHROME EMBARGO ENVmONMENTALINVESTING: HAVE President George Porter. THE ECOLOGISTS SOLD OUT? "It's way away from where the geese nest. II you went there, you wouldn't see tt." HON. JOSEPH M. GAYDOS Audubon is not the only group to del'ive OF PENNSYLVANIA HON. ROBERT H. MICHEL income from environmentally controversial IN THE HOUSE OF REPRESENTATIVES OF ILLINOIS industries. IN THE HOUSE OP REPRESENTATIVEs The 150,000-member Sierra Club and the Monday, July 28, 1975 Sierra Club Foundation have held stocks and Monday, July 28# 1975 bonds in such firms as: Mr. GAYDOS. Mr. Speaker, importa­ Exxon Corp., the world's largest on com­ tion of chrom.ite and ferrochrome from Mr. MICHEL. Mr. Speaker, I am pany and holder of a 25% interest in the southern Rhodesia has precipitated a greatly intrigued at the revelation by the Alaska pipeline. conftlct between national security inter­ Los Angeles Times that many of the Na­ General Motors Corp. a major target of ests and U.N. obligations. tion's most vocal and prestigious environ­ criticism from environmental and public in- In the near future, the House may mental groups have become stockholders terest groups. · consider legislation to ban such imports in the polluting corporations which they Tenneco, a diversified firm with Interests from Rhodesia. Passage of the bill would so ene1·getieally attack. in offshore drilling, manufacture of carcino­ Some have viewed this as a blot on the genic polyvinyl chloride, and leases. or cut­ restore U.s. compliance with the United ting rights, on about 468,000 acres of timber­ Nations sanctions against southern Rho­ credibility of the groups involved, the land. desia's white minority government. Environmental Defense Fund, the Sierra Steel companies criticized for having the This political/moral issue is further Club, the Audubon Society, and others. worst pollution records in the industry; complicated since chrome ore is essential But I do not think of it as a sell-out. I Public Service Co. of Colorado, a finn that for certain defense and industrial needs. think of it rather as a testimony to the is funding development of gas-cooled breeder The United States mines little chromite free entet1)rise system. reactors, which have come under severe at­ and is completely dependent on imports One of the great problems of a so­ tack from environmentalists. cialist economic system, albeit a seldom­ The list goes on to include strip-mining and the national stockpile. South Africa, firms With 53 leases covering nearly 180,000 the Soviet Union, Turkey, and Rhodesia discussed one, is this: How can one who acres and pulp-mill operators cited by en­ possess the world's la1·gest reserves of wishes to dissent acquire the wherewithal vironmentalists for their poor water pollu­ high-grade chromite. to promote his ideas. In our system, the tion controls. Supporters of a ban contend U.S. viola­ capitalist system, there is no such prob­ And there are other environmental groups tions of the U.N. sanctions sets a poor lem, because anyone, no matter what his with eyebrow-raising investment portfolios­ precedent, weakens international law, political ideas may be, has only to wisely such as the Environmental Defense Fund, and reduces American ir..tegrity. utilize the great engine of enterprise in which has been a major crusader for environ­ In addition, those pushing for an em­ order to reap the benefits thereof, bene­ mental causes in the courts. his The question, of course, is why prominent bargo say that since these exports to the fits which he may at choosing then organizations such as these would have such United States p1·ovide the largest source apply to the promotion of his ideas. investments at a time when virtually every of Rhodesian foreign exchange, the This is exactly what the environmental major American institution 1s awash 1n ethi­ United States is in the morally question­ groups are doing through their invest­ cal questions. able position of strengthening the mi­ ments, and I applaud them for it. It The answer, phrased various ways by dif­ nority white regime. Cor..tinued trade would indeed be a shame if some of their ferent spokesmen, is money. with Rhodesia, they assert, threatens re­ more vocal fringe supporters, bent on the "The reason why we have investments is that people have donated money to use,'' said lations with other blac~ African nations, destruction of free enterprise, should killing that Colburn S. Wilbur, executive secretary of the and could jeopardize long-term chrome succeed, thereby the goose Sierra Club Foundation. supplies when apartheid is ultimately has produced for them, as for all Ameri­ "There is a ftoat period where, 1f somebody supplanted by majority black rule. cans, such marvelously impartial and so­ donates money for a particular program, it Proponents of the bill contend that cially useful golden eggs. takes a couple of years before that program steel manufacturers can bypass Rhodesia I would like to have the article discuss­ is flnlshed and during that time, rather than since supplies are available from other ing the environmentalists' portfolios keep money in cash, we Invest it, hoping to nations and our national stockpile sur­ printed here in the RECORD: bring in additional cash." plus. They say Rhodesian ferrochrome [From. the Los Angeles Times, July 20, 1975] The cost of running a major environmental organization can soar into the mUllons. imports have adversely affected the do­ ENVIRONMENT GROUPS INVEST IN THE When available cash falls short of operat­ mestic ferrochrome industry. POLLUTERS ing expenses, environmental groups borrow Antiembargo factions warn that the (By Wllllam Rood) against their securities. Nation's appetite for chrome is acceler­ Almost always hungry for funds, a number "You couldn't have a stable organization 1f ating. A cutoff on Rhodesian sources of the country's largest environmental orga- every tlme there was a chllly wind you:d have CXXI--1604-Part 20 25466 EXTENSIONS OF REMARKS July flB, 1975 to lay off people because you didn't have Fields sold off many stocks held by the has sold most of its holdings in the stock some kind of pad:' said Charles F. Wurster, a foundation in 1973, just before the market market in favor of interest-bearing invest­ trustee- for the Environmental Defense Fund. began to sllde, and purchased CO!l"porate ments such as corporate bonds. The issue of what investments an environ­ bonds, which have provided a steady income. The decision, however, was based not on mental organization should and should not The other portion of the Sierra Club Foun­ environmental grounds but on fear of an make has been slow to emerge and painful to dation's investment portfolio (recently val­ uncertain market. deal with. ued at more than $307,000) is handled by The investment conflicts encountered by Rank-and-file members of these groups are Scudder, Stevens & Clark of Los Angeles. environmental groups have long troubled generally unaware of what investments their Asked if Scudder, Stevens & Clark had any some of the nation's major foundations and organization has. specific program for screening investments public interest groups. Annual reports usually list only income on environmental grounds, foundation Ex­ Concerned that its multibillion-dollar from investments, without detailing specific ecutive Secretary Wilbm· said: portfolio did not fully reflect its social holdings. "Scudder, Stevens doesn·t do that with our concerns, the Ford Foundation in 1972 com­ That knowledge rests with the inner cir­ investment portfolio. You'll probably see missioned a study into the social aspects of cle--board members and staff managers. some things there." · investments. The issue of how to make environmentally Wilbur said the Los Angeles firm had been H. David Rosenbloom, au attorney and sound investments has been discussed in told not to invest in companies which were one of the authors of that study, explained these circles, often with frustrating results. the point at issue: 4 environmentally controversial but added, 'A few internal questions have been raised "I'm not sure cxf Scudder, Stevens-how "It just doesn't make sense for a public and answered," said EDF's Wurster. much they know of our interests. I'm not i1,1.terest .institu~ion to earn money from "Let's look at it this way. You want to in­ sure how much time they spend on that." whatever sources it can with the left hand ..,. . vest l}leanly. You can't buy utilities;· you can•t The foundation portfolio managed by and tm·n around and do good with the right buy banks -because they .lend to all these bad Scudder; Stevens_lncludes $28,450 in oil com­ ha:Jld. . · guys. You can't buy anything. There's noth-. pany stocks, more than $61,000 in mining '.'If your investments are operating to the i.J;lg you can do with your money unless you and metal-processing stocks and $48,495 tn detriment of the things for which you stand, etuff it under your plllow." ·forest products securities, according to latest there's a question as to how much good Asked what, if any, controls have been reports furnished by the foundation. you're doing." - ' - placed en investments, Wuster said EDF had A Scudder, Stevens & Clark investment In the wake of the study done oy ·Rosen- . given ita portfolio manager-Hooker O'Mal­ bloom and another~ attorney, Bevis' Long­ counselor who handles the foundation port­ • ley of U.S. Trust Co. · of New York-instruc­ folio ·declined to discuss what procedures he streth, the .Ford Foundation has strength­ .. tions not to deal in "environmentally noxious uses to avoid environmentally controversial ened its program for reviewing investments companies." investments. using social criteria. Asked for speclflcs on how he carries out "Let me call you back," he said. The call Environmental considerations are weighed these instructions, O'Malley said he would never came. heavily by the foundation's staff of im·est­ have to obtain clearance from his superiors­ Asked why the foundation splits its port­ ment analysts. who later declined comment on grounds of folio between a firm that screens investments Visits to corporations and direct communi­ oonfidentiality. on environmental grounds and another that cations between high-ranking corporate of­ Copies of EDF tax returns, made available apparently does not, Wilbur said: ficers and foundation analysts are part of the to the public by the Internal Revenue Service, "The investment committee feels they'd program. show a history of investment in utility bonds like to htlve different organizations, to see­ "On the botttom line it really falls to the and such firms as General Motors and Exxon. how they compare. Rather than have an of· analyst: We expect him, as part of his on­ going dialogue with management, to incor­ Tb.e Exxon stock is of particular interest our dollars g9 ~nto one organization, they'd because of EDF's role in raising enVironmen­ rather .have two,_ as kind of a hedge." porate not just financial data, but also-so­ tal questions about construction -'of the - The .Sierra Club-which, though under a cial data," said Leslie Porter, manager of Alaska pipeline. separate. board of trustees, is heavily f1,mded banking for the foundation. "The Exxon stock (valued at $17,189) was· by the foundation-has also grappled with The foundation is also funding efforts to contributed by an EDF trustee, and it wasn't the investment probiem, without coming up· increase the amount of data on social ques­ sold. It just $its there. I'm one of t!he v~ry ' with a specific policy. . . tions, including the environment, concern­ few people who knov: v:ho th e trus~e_ is," "Since about 1971, we have periodically ing industry. Wuster said. discussed this question-what guidelines we But many spokesmen for environmental_ Such donations are a frequent source of organizations feel such efforts will not be should h&ve on investments from an envi­ enough. environmentally controversial investnien~~ ronment ~~andpoint," said J. Michael Mc­ held by environmental organizations. _ Closkey, the club's executive director. "It's an incredibly difficult question. I think those who have tried to put together Although spokesmen for the groups say "Every tim~ we've gotten very far into the they try to ~ell more troublesome stock con­ subject, we've realized that the information portfolios of environmentally acceptable in­ , tributions, the lure of profits sometimes is simply not available to inake very good vestments are really . doln~ no more than en- _ makes the decision difficult. distinctions in investments." gaging in stabs in the dark," said the Sierra "We try, insofar as possible, not to hold on The club's investments are handled by Club's McClosey. to a stock for any length of time where we William Wentworth, a long-time member "It's going to take the federal government, lfeel we have a conflict of interest," said and San Francisco investment cmmselor. probably the Securities and Exchange Com­ EDF fund raiser Robert J. Pierpont. "We have enjoyed a very trusting relation­ mission, ideally, to try to come up with dis­ "That doesn't mean we would sell it im­ ship going back into the '40s," Wentworth closure of really meaningful information," he mediately. We might hold on to it 1..mtU it said recently in discussing his handling of said. goes up." the portfolio. Indeed, the SEC is considering such a Some environmental groups have tried to "Obviously an organization such as the move. bring their investment pollcies in line with Sierra Club has to be very sensitive on this As a result of legal action brought by the their principles. subject." Natural Resources Defense Council, the SEO The Sierra Club Foundation, for instance, Wentworth said he had nev.er been ques­ has held hearings to determine the feasibility tioned by club trustees on specific invest­ of requiting corporations to disclose social bas placed about half its investment port­ data. folio (worth more than $297,000) with Fields, ments made on their behalf. Asked if he had Grant & Co., a Menlo Park firm that offers ever sold any of the club's stock for environ­ Appearing as a witness before the SEC in mental reasons, Wentworth said: April, McCloskey testified: to screen its clients' investments using en­ "While we are inclined to believe that some vironmental and other social criteria. "We have sold one or two securities--<>nly firms are doing a better- job than others, we "The concept is that not only can one buy one, frankly-where we felt they were issues have never been able to find a way of being stocks and bonds for money and profit but the directors might take exception to." sure. at the same time can express social con­ Which stock was that? "There is a great information gap between cerns-if not in absolute terms then in rela­ "I think that's a very small, nitpicking the self-serving claims of some companies, tive terms," said company President Randall matter and represented a small portion of who claim to be doing a. model job, and the K. Fields. the total (portfolio) . It was done more to outright defiance of other companies, who Fields, who discussed the Sierra Club make life easier for us as investment man­ constantly ran against the idea of complying Foundation account with clearance !rom agers than to satisfy my ideals," said Went­ with environmental laws." foundation officials, contends that environ­ worth. McCloskey called on the commission to re­ mentally aware companies also tend to be Noting that "the performance of the ac­ quire disclosure of detailed information of profitable. count has provided satisfaction" to club di­ interest to environmentally oriented 1nves­ "I'm convinced that those companies that rectOrs, Wentworth said "that, in the la.st tors. take the greatest forward look with regard analysis, is what you're really interested in, While action by the SEC is pending, some to what's happening to society are going to the bottom line." private organiZations have been striving to be the best managed companies over the long The Sierra Club, like other environmental fill the information gap. run,'' he sal

SELDOM USED to savings and investment now found The need to assure adequate capital for­ As a practical matter, however, the Fleet­ in our Federal tax laws. mation in the decade ahead must be a para­ wood jury was told, the appeal process is sel­ One of those measures is the Jobs mount consideration in the tax revision dom used by grain owners or ship companies legislation which Congress Is expected to en­ Creation Act of 1975, a bill which I act late this year or early in 1976. because the government appeal inspectors introduced in March and a bill which, are known to be tougher than the agency The United States reinvests a far smaller after several reintroductions and per­ share of its national income in new plant inspectors. Gilbert Vorhoff, president of the New Or­ fecting amendments, now has over 80 and equipment than any other industralized leans Board of Trade, defended the board's cosponsors in the House. That bill, H.R. country in the world. Administration econ­ 8053, is designed to accelerate the for­ omists, backed by most of their brethren inspection procedures and said a new man outside government, say it is no coincidence has been employed to supervise the inspec­ mation of capital needed to assure that this country's advantage in worker pro­ t ors as a result of the cases. Two of the higher productivity and more jobs. An ductivity has been slowly but surely eroding. indicted men worked for the Board of Trade, extensive discussion of capital forma­ Efforts also should be made to broaden the while others in New Orleans worked for other tion in general and this bill in partic­ base f1·om which investment-feeding savings inspection agencies. ular is found in the RECORD of today are drawn. Vorhoff acknowledged that the Board of There may be a temptation for Congress Trade's main function is to promote t1·ade during the special orders, and I call it to the attention of all those concerned to concentrate on soak-the-rich closing of and commerce, and that its members and di­ tax loopholes and new tax cuts for low­ rectors include officials of grain and shipping with the economic situation in our and middle-income citizens without doing firms. But he insisted that there is "absolutely country today. anything real about the need to encourage and unequivocally not a conflict of interest" Support is indeed growing for enact­ capital formation. That would be a distinct in such an organization's also being a regula­ ment of capital formation measures. disservice to Americans of all income tory agency for the inspection of ships and brackets. grain. That support is being reflected more BANK OFFICIAL every day 111 the editorials and press That Los Angeles Times editoria-l fol­ Vorhoff is a vice president of Hibernia Na­ comments of the Nation's major publi­ lowed the nationwide syndication of tional Bank and specializes in international cations. Nick Thimmesch's column through the finance. I think it is important we perceive Los Angeles Times Syndicate on June 12, U.S. Attorney Gallinghouse said that since accurately the public posture on this entitled, "A Reappraisal of Big Busi­ the in(iictments were issued both the Board issue. It is one 'me support of greatet• of Trade and the Agriculture Department ness": capital formation, and the items which Profits, as not enough people know, are have taken steps to improve supervision ot follow support this conclusion. the inspectors and to make spot checks on necessary for investment-expansion and their activities. On July 1, the Buffalo Evening News modernization of productive capacity. In re­ In Houston, the Houston Merchants Ex­ culminated a 3-day series of lead edi­ cent years, despite headlines about high change conducts grain and ship inspections torials on capital formation in these (gross) profits, the basic manufacturing in­ for four export elevators. words: dustries suffered a great decline in net Roy T. James, secretary and general man­ The federal government cannot by itseU profits, and the earnings slide further in the ager of the exchange, said the organization create the capital investment required to current recession. is owned by 23 stockholders from the major keep our American economy robust and The unhappy result is that the United grain firms, shipping companies, banks and growing. But by mounting a determined States is slipping way behind the rest of the other businesses. effort against inflation and by carefully industrallzed world in real economic growth. He said he expects his inspectors to be ex­ modifying tax and other laws that influ­ Even with population size leveling off, 10 onerated and to be "back at work before ence the investment climate, it can and million new jobs must be created in the too long." asstiredly should help stimulate the forma­ next five years in the United States. It takes Harlan L. Ryan, Agriculture Department tion of private capital so essential to our up to $40,000 in capital to create even one supervisor for the grain division office in standard of living. job. The best estimate is that in the next New Orleans, said his staff wlll be Increased No society can live indefinitely beyond 10 years there will be $2.6 trillion available from 27 to about 50 in order to provide better its means, consume more than it produces, for such investment but that $4.1 trillion control over the approximately 125 inspec­ or prosper without thoughtful planning is needed. tors employed by the five inspection agencies alert to promising new directions. CUrlously enough, an increasing number in the area. Congress must reexamine the tax laws, of labor leaders, the men who learn eco­ nomics by studying the industries they are Agriculture Department supervision teams as in fact the House Ways & Means Com­ are doing more checks on ship-hold inspec­ mittee has begun to do, looking toward trying to extract raises and benefits from, tions, and new guidelines are being issued strengthening several principles for stimu­ are sharing the concern of executives about to the inspection agencies, Ryan said. lating future investment. industry's abllity to expand. First, the tax laws should seek both to If there is not improvement in the profit­ enlarge the investment pool and guide it investment situation soon, many of those in high-priority directions. Not only does critics who helped damage the once-marvel­ this mean devising fresh incentives for ous engine will be standing there screaming PUBLIC OPINION IN SUPPORT OF investments in essential areas but it means at it for not providing all the goodies it TAX REFORMS DESIGNED TO closing loopholes which merely shelter did in yesteryear. FOSTER ACCELERATED CAPITAL wasteful or less useful investment. The Boston Herald Advertiser o£ FORMATION IN THE INTEREST Second, the lax laws should do less, over Apri113, in an article entitled "Low U.S. OF JOBS the long run, to encourage bon·owing and Capital May Affect Jobs," commented more to encourage savings and Investment. on this subject and how it relates to A third principle that ought to govern jobs: HON. JACK F. KEMP tax-law revisions is the desirability of in­ volving more individual Americans in the The U.S. is running low on capital. At OF 1\TEW YORK ownership of equity shares. stake is your job. IN THE HOUSE OF REPRESEN'rATIVES So there is no shortage of ideas in set­ As percentage of its economy, America has ting a fresh course to promote America's less growth capital available than almost Monday, July 28, 1975 all other industrialized countries. Chase Man­ real growth in living standards. The tough­ hattan Bank, the nation's third largest, esti­ Mr. KEMP. Mr. Speaker, public opin­ est chore will be to sort out those ideas in a ion is growing increasingly in support mates that we are under-investing in our balanced, coherent program that is effective economy by $400 million ea.ch day, and will of tax reforms designed to foster ac­ as well as fair to all elements in our society. continue to do so for the next 10 years un­ celerated capital formation. This can flow only from a recognition of less profound changes are made. . The people know the relationship be­ the problem, an updating of public atti­ If those changes aren't made-In att.t­ tween capital and jobs. They know that tudes and, above all, a change in the politi­ tudes and in laws-'lihe U.S. will be a second­ assuring adequate capital for invest­ cal climate that has for too long treated rat-e country, or lower, within a decade, as ment in new plant and equipment is the profits as a rip-off, savings as slightly anti­ its capital formation declines. key to guaranteeing the existence of social, and the spending of every cent of What is this "capital Information" that in current jobs and to encouraging the income as the highest form of economic America has slowed to a trickle? It is the patriotism. savings of indiViduals. It Is also that ::><>r­ formation of new ones. tion of corpora-te earnings which becomes The House Committee on Ways and On June 22, one of the Nation's larg­ available for re-investment a.fter paying all Means now has before it major legis­ est newspapers, the Los Angeles Times, costs. Those a.re the only sources of capital lation on tax reform, much of it de­ had editorialized on this issue in these and if either the ability or Incentive to save signed to remove existing impediments words: is inhibited, there is less capital formation. 25496 EXTENSIONS OF REMARKS July 2'8, 1975 Solution 1s achievable, mostly through re­ higher prices for its customers, lower pay for In April of last year, CIA Director Wil­ vision of the tax laws: Provide inducement its employees, fewer jobs for the community liam Colby appeared at a closed session of for people to save, say a lower tax on inter­ and lower dividends for its stockholders. Rep. Lucien Nedzl's Armed Services sub­ est payments; Uberalize depreciation allow­ The impracticality of the corporate income committee on tnteWgence and described ances on machines and equipment; give tax ls especially salient at the present time his agency's long-term Involvement In tlle preferential tax treatment to corporate earn­ when government is supposedly doing all it political process ln Chlle, where a bloody ings retained tor investment and inClude the can to reduce unemployment. Billions are coup against Salvador Allende Gossens in service industries; bring the capital gainS being appropriated to create makework jobs September 1973 had led to the Installation tax provisions at least to a par with other which merely shift work from the private to of a military dictatorship. Mr. Nedzl had countries; determine one fiscal and mone­ the public sector. called Colby in at my urging, so naturally tary policy and stick with it; do away with It would be preferable to remove the ob­ I wanted to know what the director had to controls that restrict or impede t he free stacles to expansion and investment so that say. Not being a member of Armed serv­ market economy. Americans can return to real jobs that pro­ ices, I had to make special arrangements to duce goods and services. A drastic reduction view the classified transcript in the com­ The Reader's Digest of June 1975, in in the corporation income tax would help mittee offices--the privilege of any House an article entitled, "What Ever Hap­ achieve this. Its abolition would be even member-and after some initial difficulties pened to the Nickel Candy Bar?" gave better. with the staff there, I got my first look at several examples of the ways in which While a politician may find it useful to the material on June 4. What it said left capital relates jobs: cultivate the myth that "the little guy" is me appalled. to helped by socking lt to ..big business," it just Let's first consider two basic ways to The authorization of bribery, the fund­ isn't so and we are pleased to find a politi­ ing of political factions and propaganda lower the price of a product. One way is to cian with the wit and courage to say so. cheapen the product, lower its quality. But campaigns, the fomenting of strikes and Rep. Jack Kemp, R-N.Y., has sponsored a demonstrations, a myriad of destabilizing this is a fatal device in a free ma.rke~n­ bill which ellmlnates the double taxation of sumers catch on quickly. The other way is actions-all directed against the duly elect­ corporate income and achieves other reforms ed leader of Latin America's most sophis­ to maintain the qU&llty but cut the cost of to encourage capital formation. The bill is mru1ut.acture. If the product ls soup cans, ticated democracy-are now matters of pub­ needed and deserves the support of all par­ lic record. Not only does that record indi­ for instance, it means producing more and ties interested in economic recovery. better soup cans for the time and labor cate violations of standing treaties and spent. That's what's called improved produc­ Mr. Speaker, the people are remem­ other affronts to Chilean sovereignty; it also shows that President NiXon and Sec­ tivity. bering that private capital at work Just ponder, for example, what happens retary Kissinger had Ued repeatedly to the means people at work; that private capi­ American people about our involvement when a mix of technology, planning and tal not at work means people not work. worker motivation spells high productivity. at there and that some administration figures Major manufacturers of hand-held power had apparently perjured themselves on the tools in Germany, Japan and England have matter before certain committees of Con­ not been able to penetrate the American gress. market because high-quality American-made CONGRESSIONAL COVERUP Determined to get some congressional ac­ hand tools are competitively lower in price. tion that would bring these things to light, One of the major forces behind this situation I approached Mr. Nedzi and asked him what is the Black & Decker Manufacturing Co., of HON. HERMAN BADILLO he planned to do with this information. He Towson, Md. OF NEW YORK replied with a phllosophical shrug. He has taken the testimony as I asked-what more The company secret? Better productivtty. IN THE HOUSE OF REPRESENTATIVES In part, this comes from the wise investment could one do? This informalon, after all, of funds in new machines and advanced Monday, July 28, 1975 was secret. Knowing full well from my short-term ex­ research. Mr. BADILLO. Mr. Speaker, it is a While such improved productivity has paid perience as a member of Armed Services off in increased sales and profits, it has also privilege to insert in the RECoRD an ar­ (ending in 1973) tllat Chairman F. Edward paid off for employees. The company payroll ticle authored by our colleague the Hon­ Hebert would be even less inclined to pur­ in 1958 was $14.5 million for 3,800 employees. orable MICHAEL HARRINGTON. The article sue the matter than Mr. Nedzl, I spoke with Last year's payroll was $165.2 million for appeared in the July 26,1975, issue of the several subcommittee chairmen of House 20,700 employees. New Republic mag.azine. I would like Foreign Affairs. of which I am now a member, And look at the payoff for the consumer: and then with some of my staff. I also sought to express my oontinued support for the advice of Larry Stern of The Washington In 1958. Black & Decker's basic electric drill Mr. HARRINGTON, and I hope that this Post. a personal friend who clearly under­ for do-it-yourselfers cost $18.95. Now it costs article helps clarify his position. stood that the story was not to be released. $10.99. A standard jigsaw that sold for $44.50 CONGRESS CIA COVERUP: GETTING OuT THE But the reactions of the subcommittee chair­ in 1958 now costs $11.99. And remember. men and other Foreign Affairs colleagues, tlleso price changes occurred during a 16- TRUTH (By Michael J. Harrington) though generally sympathetic in tone, were yea.r period which saw the U.S. Consumer equally lacking in commitment. Yes the Price Index rtse 75.2 percent. (NoTE.-Mr. Harrington is the Democratic Chile story sounded pretty bad, but that was But the productivity payoff can also meau congressman from Massachusetts• sixth ~ tlle province of another committee and be­ a lot mo1·e than new jobs and higher pay. trict.) sides, the Information was secret. Sometimes it spells survival. If a President engages in a cover-up of I finally wrote to ..Doc .. Morgan, chairman The Indianapolis Star of July 11. made government. wrongdoing, as happened 1n the of the full oommtttee. and to Senator Ful­ this specific endorsement of capital NiXon White House, he can be challenged bright. In those two long letters of July 18, I through the process of impeachment, which reviewed Colby's April testimony and argued formation measures including the Jobs amounts to indictment and trial by the Con­ that "the Congress and the American people Creation Act: gress. But what do we do if the Congress have a right to know what was done in our As Congress takes up the problem of tax engages in a cover-up? Individual members name in ChDe • • • I urge you to turn this reform this week, there is reason to hope can be censured or expelled, of course, but matter to the attention of the Foreign Rela­ that an inequitable and impractical feature what if the cover-up is institutional, a prod­ tions [Affairs] Committee for a complete, of our Federal tax system-the corporate in­ uct of the most time-honored rules and public investJgatton. •.•" I pointed out that come tax-will get a thorough review. rituals? the Forty Committee. the interdepartmental An income tax Is paid on money earned by This 1s precisely the problem that con­ body chaired by the President's national the corporation. That money is taxed again fronts us ln the unfolding story of CIA and security adviser, had auth<>rize

------~------HOUSE OF REPRESENTATIVES-Tuesday, July 29, 1975

The House met at 10 o'clock a.m. professional attainment of women-she gress was running an $88 billion deficit. Rev. David H. Smith, Walker Chapel was a director of the Bank of Cambria. This simply is not con-ect. United Methodist Church, Arlington, Va., Reverend Smith graduated from the The action of the House to date is $3.5 offered the following prayer: Christiansburg High School and the billion below the concurrent resolution 0 living God, we feel keenly the bur­ Randolph-Macon College. He took his deficit figure, which was $68.2 billion. I dens we bear and share in this distin­ theological training at Vanderbilt Uni­ will be sending to my colleagues today a guished Chamber. versity and Union Theological Seminary. report on each of the appropriation bills We carry obligations to serve the peo­ His pastorates have included Windsor indicating what has been put forth by Hills in Roanoke, Wesley Memorial in ple who sent us here. the House, what it compares to in the We also know times when candor and Charlottesville. LeKies Church in Nor­ conscience lead us in directions that con­ folk, and Epiphany Church in Vienna­ concurrent resolution, and what items filet with the masses we represent. all Methodist congregations in the State are still open. There are moments when Your awe­ of Virginia. Reverend Smith is presently The only area in which there may be some presence reminds us that we are pastor of Walker Chapel United Meth­ a difference is in the estimates made by being tested by eternity as well as time, odist Church, a beautiful and historic the President as to the amount that by all humanity as well as by the people church just up Glebe Road from Chain would be spent on programs that are next door. Bridge across the Potomac River. dealing with the recession. When we do We need Your direction. Bring us clar­ Last summer Reverend Smith was an not pass the stimulus programs or can­ ity of vision; openness to truth; loyalty exchange pastor at a church in Corn­ to the highest we know; and the good not override the vetoes then the reces­ wall. England, as he had been at Not­ sion continues and the spending for un­ warm feeling that surges within when we tingham, England, in the summer of bave offered our best. 1971. He serves on the Virginia Confer­ employment compensation, food stamps, In Your keeping we place this day ence Board of ffigher Education and and so forth, will rise. We will have those with confidence, hope, and thanksgiving. Campus Ministry. He is chairman of the estimates for the Members of the House Blessed be Your name. Amen. Committee on Continll.iug Education, by the month of September when the and he is secretary of the Regional Board Members come back from recess. of Virginia Methodist :-Iomes