1957 . CONGRESSIONAL RECORD - HOUSE 441 By Mr. TEWES: H. R. 2752. A bill for the relief of Frank A. tion at its midyear meeting on December 15, H. R. 2740. A bill for the relief of Mrs. Simmons; to the Committee on the Judi· 1956, concerning the United Nations; to the Harriet Sakayo Hamamoto Dewa; to the Com­ ciary. Committee on Foreign Affairs. ~ittee on the Judiciary. H. R. 2753. A bill for the relief of Charles C. 31. Also, resolutions adopted by the New By Mr. THOMAS: Lewis; to the Committee on the Judiciary. Jersey State League of Municipalities Con­ H. R. 2741. A bill to authorize and direct H. R. 2754. A bill for the relief of Mariano ference in Atlantic City, N. J., opposing any the Administrator of Veterans' Affairs to con­ Santana Llamas; to the Committee on the proposal by Congress to tax the income of vey certain. lands of the United States to the Judiciary. municipal and other local public agency Hermann Hospital Estate, Houston, Tex.; to H. R. 2755. A bill for the relief of Antonio bonds, and supporting the stand of the the Committee on Veterans' Affairs. Contreras; to the Committee on the Judi- American Municipal Association in urging By Mr. THOMPSON of LouisiP.na: ciary. Congress to enact legislation permitting the H. R. 2742. A bill for the relief of the H. R. 2756. A bill for the relief of Ahm Me sale to States and local governments of Fed- Miami Corp., the Paggi-Streator Co., Win­ Cha; to the Committee on the Judiciary. eral surplus property at private or negotiated field S. Streator, the North American Land H. R. 2757. A bill for the relief of Ingeborg sale and at the same prices as such properties Co., and the Humble Oil & Refining Co.; to Bildii; to the Committee on the Judiciary. are offered to other Federal agencies, such H . R. 2758. A bill for the relief of Valente the Committee on Interior and Insular Hernandez-Hernandez; to the Committee on sales having priority after the needs of Fed- Affairs. the Judiciary eral agencies and the donable programs for By Mr. THOMPSON of New Jersey: H. R. ~759 . .A bill for the relief of Jose- health, educational, and civil defense pur­ H. R. 2743. A bill for the relief of Mrs. phine Shelby; to the Committee on the . poes have been met; supporting legislation Bronislawa Marini; to the Committee on the Judiciary. to provide payments to municipalities in Judiciary. H. R. 2760. A bill for the relief of Claudio lieu of taxes on federally owned property; H. R. 2744. A bill for the relief of Paolo Vargas Gonzalez (alias Jose Ramirez Oroz- to the Committee on Ways and Means. Lo Cascio; to the Committee on the Judiciary. co); to the Committee on the Judiciary. 32. By Mr. CHIPERFIELD: Resolution By Mr. THOMPSON of Texas: H. R. 2761. A bill for the relief of Sho Ging adopted by the Warren County Bar Associa­ H. R. 2745. A bill for the relief of the Wong; to the Committee on the Judiciary. tion of Monmouth, Ill., in support of H. R. estate of Barney Isabel, deceased; to the H. R. 2762. A bill for the relief of Anders 9 and 10; to the Committee on Ways and Committee on the Judiciary. Ellingsen; to the Committee on the Judi- Means. By Mr. THORNBERRY: ciary. 33. By Mr. THOMPSON of New Jersey: Pe- H. R. 2746. A bill for the relief or Maj. H .. R. 2763. A bill for the relief of Hong-to tition adopted by the Board of Commission- Philip J. Fox; to the Committee on the Judi­ Dew, to the Committee on the Judiciary. r f th Cit f T t N J D ciary. By Mr. WAINWRIGHT: es o e y .o re.non, . ., ece.m- By Mr. TRIMBLE: H. n. :4'764. A bill for the relief of Frank A. ber 17, 1956, urgmg assistance to Hungarian H. R. 2747. A bill for the relief of John H. Keller; to the Committee on the Judiciary. refugees; to the Committee on Banking and Parker; to the Committee on the Judiciary. By Mr. WIDNALL: Currency. H. R. 2748. A bill for the relief of Herman H. R. 2765. A bill for the relief of Ohan Ev- 34. By the SPEAKER: Petition of the Sec- Adams, Charleston, Ark., doing business as renian and Mrs. Vehanoush Evrenian; to the retary, Knights of Equity Supreme Council, the Adams Manufacturing Co.; to the Com­ Committee on the Judiciary. Buffalo, N. Y., petitioning consideration of mittee on the Judiciary. By Mr. YOUNG: · their resolution with reference to declaring By Mr. TUCK: H. R. 2766. A bill for the relief of Miss that ending the partition of Ireland advances H. R. 2749. A bill for the relief of Vasiliki Etsuko Yamada Hartwig; to the Committee world peace, etc.; to the Committee on For- Elefantis Kritselis; to the Committee on the on the Judiciary. eign Affairs. Judiciary. 35. Also, petition of J. S. Curtis and oth­ By Mr. UTT: PETITIONS, ETC. ers, Burbank, Calif., petitioning considera­ H. R. 2750. A bill for the relief of Mrs. tion of their resolution with reference to Alicia Romero de Ramirez; to the Committee Under clause 1 of rule xxrr, petitions requesting a statement as to how much on the Judiciary. and papers were laid on the Clerk's desk money from the United States Treasury has H. R. 2751. A bill for the relief of Juan and referred as follows: · been paid or loaned to Britain and France Perez-Ramirez; to the Committee on the 30. By Mr. CANFIELD: Resolution ap- during the past 11 years, etc.; to the Com­ Judiciary. . proved by the New Jersey State Bar Associa- mittee on Foreign Affairs.

EXTENSIONS OF REMARKS

A Continuing Antitrust Program sentatives unanimously in the 84th Con­ forcement officials. With the notice, gress and were pending in the Senate merging corporations would be required EXTENSION OF REMARKS when Congress adjourned. It has three to furnish to the Government specifically purposes. enumerated information to enable the OF The first purpose is to prevent bank Attorney General or the appropriate HON. EMANUEL CELLER mergers achieved by acquisition of assets agency to assess the merger's probable OF NEW YORK where the effect may be substantially to impact on competition. Willful failure IN THE HOUSE OF REPRESENTATIVES lessen competition or to tend to create a to submit the notification or to furnish monopoly in any section of the country. the required information would be sub­ 7'hursday, January 10, 1957 Section 7 of the Clayton Act, as amended ject to a penalty of from $5,000 to $50,000. Mr. CELLER. Mr. Speaker, today I by the Celler-Kefauver Act, now covers The bill sets forth 10 categories of introduced 4 bills as part of a continuing bank mergers achieved by stock acquisi­ corporate transactions which are exempt program to increase effective enforce­ tions but fails to include bank mergers from the notification and waiting pro­ ment of the antitrust laws and to assure accomplished by means of asset acquisi­ visions of the bill. In addition, the bill the maximum realization of a competi­ tions. This bill will close the gap in ·requires the Federal Trade Commission tive free-enterprise system. These bills existing law and will provide the Federal or other appropriate Government result from investigations by the Anti­ Reserve Board and the Attorney General agency, upon approval of the Attorney trust Subcommittee during the 84th Con­ with the same authority to move against General, to establish procedures for gress into the enforcement of the anti­ asset acquisitions by banks as against waiving all or part of the notification of merger provisions of the Celler-Kefauver stock acquisitions. waiting requirements in categories of amendment to section 7 of the Clayton The second objective of the bill is to ·cases where notification and a waiting Act, the investigation into antitrust require parties to a proposed merger to period is deemed unnecessary to effectu­ problems existing in industries regulated notify the Attorney General and the Fed­ ate enforcement of the antimerger law. by Federal commissions and boards, and eral Trade Commission or other appro- The premerger notification provisions the investigation into the operations of . priate board 60 days in advance of the of the bill are procedural amendments · Government advisory groups. transaction. Under the bill, parties to a to the Celler-Kefauver Act of 1950, which The first bill, the premerger notifica­ proposed merger where the combined prohibits corporate mergers, regardless tion bill, combines substantially the pro­ capital structure would exceed $10 mil­ of how accomplished, where the e:ff ect vision~ of H. R. 5948 and H. R. 9424, both lion, cannot consummate the transaction may be substantially to lessen competi­ of which passed the House of Repre- until 60 days after notice is given to en- tion or tend to monopoly in any section 442 CONGRESSIONAL RECORD - HOUSE January 10 of the country. These amendments are Under the doctrine of primary juris- functions. Consequently, procedures necessary in order to avoid the consider­ diction, the courts of the United States regulating advisory groups are needed to able time, effort and expense now re­ have declined to give relief against al- provide safeguards that reduce oppor­ quired by the enforcement officers in legedly unlawful restraints of trade if it tunity for concerted industry action det­ searching out newspapers and trade pub­ appeared that administrative agencies rimental to completion or beyond the lications to discover proposed mergers, have been vested with authority to ap- scope of advisory functions requested by and in collecting economic data needed prove some or all of the activities cha!- the Government. to determine whether a full-scale in­ lenged as illegal. The courts have with- Since participants in advisory groups vestigation is warranted. held their powers in these cases out of meet and take concerted action to some Under the bill, failure by the Depart­ deference to superior technical exper- degree at the request of the Govern­ ment of Justice or the Federal Trade ience, commonly referred to as expertise ment, advisory group procedures must Commission to bring suit within the 60- of the regulatory agencies. One result contain methods-by which the limits of day waiting period does not constitute of the application of 'this doctrine of activity requested by the Government approval of the transaction or prejudice primary jurisdiction, however, has been may be ascertained accurately. With­ the Government's right to institute pro­ that the Attorney General has been . out such delineation, the Government ceedings at a later date to challenge the ousted from his prescribed duty to en- may be embarrased in subsequent at­ legality of the merger. The bill does not force the antitrust laws and, in regu- tempts to prosecute participants in advi­ establish advance agency approval of lated industries, business firms involved sory groups for unauthorized acts. ·mergers. in activities illegal under the antitrust Advisory groups operate under and The third purpose of the bill is to pro­ laws have been granted a greater im- to a certain extent exercise authority vide the Federal Trade Commission with munity than intended by Congress. from the Government. Unless respon- authority to seek a court order to prevent As this doctrine of primary jurisdic- sible officials retain control of the advi­ consummation of a merger pending the tion has been construed by the courts, the sory group, this mantle of Government issuance of a complaint and the comple­ Attorney General appearing for the authority is subject · to abuse by the tion of the Commission's administrative United States in its sovereign capacity to participants and the Government used proceedings. This amendment would prevent and restrain violations of its as a vehicle for private gain. Such give the Federal Trade Commission, criminal laws has been relegated to the abuses include the extraction of compet­ which has concurrent jurisdiction with position of a supplicant before regula- itive information not desired by the the Attorney General to enforce the tory bodies. Moreover, under existing Government and the compelling of con­ merger provisions of the Clayton Act, judicial decisions, the Attorney General f ormance to policies of a segment of in­ authority similar to that now possessed must go to the administrative agency dustry. by the Attorney General to seek a pre­ even if that body has never approved The operation of some advisory groups liminary court injunction restraining the activities being attacked by the has resulted in the creation of adminis­ consummation of a merger while adjudi­ United States and no exemption from the trative lobbies within the executive cation of its legality is pending. antitrust laws has been obtained. · branch of the Government and has The second bill, the Primacy of Free This bill would make it clear to the placed the ·interests represented on the Enterprise bill, amends the Sherman Act courts that it is the intention of Congress group in a favored and influential posi­ by having Congress declare that it is the that suits brought by the United States tion in the routine operations of Govern­ policy of the United States to maintain to prevent or punish activities declared ment and the solution of public problems. to the maximum extent practicable the to be illegal by the antitrust laws should From the standpoint of the public policy · American system of free competitive not be stayed or barred on the ground enunciated in the antitrust laws and the ·enterprise embodied in the antitrust that any other agency of the Govern- enforcement of those laws, there is not laws. Its purpose is to establish a guide ment also has jurisdiction over the ac- only the danger that these private or­ for administrative agencies, regulatory tivities challenged by the Attorney Gen- ganizations may abuse tne circumstances bodies and the courts in the exercise of eral. which caused the Government to author- their powers over business and arrange­ The third bill would add a new section · ize meetings together of the competitors ments involving exemptions from the to the Clayton Act to make the advisory · and use such meetings to commence or antitrust laws. It creates a presumption group criteria promulgated by the De- continue overt antitrust violations. in favor of free enterprise which will as­ partment of Justice mandatory in the There is also the effect that the activities sure that our antitrust policy favoring organization and operation of any Gov- of these private groups have on govern­ competition is not subordinated unless ernment sponsored advisory organiza- mental decisions which have a direct this is found necessary to attain other tion which brings competitors together. bearing on industrial growth and concen­ objectives established by Congress. The These criteria are that meetings must tration of economic power. bill makes it clear that Congress, in au­ be called by and be under the chairman- Any organization created by a Govern­ thorizing administrative bodies to regu­ sl!ip of full-time salaried Government ment official to assist him by furnishing late business and industry, intended such officials, that agenda for meetings must advice and information necessarily must regulation to supplement and not to be initiated and formulated by the Gov- be conceived in the context that the or­ supersede our system of free competi­ ernment, that full and complete minutes ganization is to be a governmental body. tive enterprise. of all committee and subcommittee This bill would establish procedures reg­ Rulings by administrative bodies and meetings must be kept and that the ulating the conduct of Government cre­ judicial decisions have unduly expanded group's function must be purely advi- ated advisory groups to assure that all of authorized exemptions from the anti­ sory. their operations ai·e those appropriate to trust laws. Regulatory bodies and the While it is essential that Government governmental bodies. courts have vacillated in the weight re­ officials secure the advice from industry The fourth bill amends the Clayton quired to be afforded to antitrust ob­ necessary for them to discharge intel- . Act to exclude from taxable income two­ jectives in determining the public in­ ligently their administrative responsibil- thirds of the treble damages awarded terest. This bill establishes a guide so ities, it is equally important that proce- private litigants who have been injured that there will be greater consistency dural safeguards be erected to prevent . in their business or property by any other in administrative and judicial action in abuses which have ·been shown to exist person or company as the result of vio­ this area. This bill is a recognition that in the operation of advisory groups. The lation of the antitrust laws. it is time for Congress to reassert posi­ Antitrust Subcommittee's investigations Treble damages are presently awarded tively its belief that while it recognizes have demonstrated that in practice, the under the antitrust laws as an incentive that competition alone will not always activities of some advisory groups have to injured persons to appear before the protect the public interest adequately, involved delegations to private parties courts when antitrust violations affecting departures from antitrust norms should of functions which properly should re- them have occurred. Private antitrust be kept to a minimum and that compe­ side exclusively in Government officials. suits are complex, lengthy, and expen- tition shall be preserved and encouraged An advisory group ordinarily consists sive, and small companies especially are in the regulated industries except where of a combination of competing business under a handicap in protecting them­ it appears that over-riding statutory interests. As such, meetings provide an selves from antitrust law violators. Tre­ objectives cannot be achieved under opportunity for agreements among the ble damages compensate them for the competitive conditions. participants unrelated to their advisory risk to their businesses as well as the 1957 CONGRESSIONAL RECORD - HOUSE 443 time and expense to which they are suQ­ organized support for every Federal program Recently, Gen. Nathan Twining, Air Force ject in these suits. that has been designed to promote vocation­ Chief of Staff, said: Private treble damage antitrust actions al instruction. "It is entirely possible that if we cannot get have a twofold purpose: First, they oper­ Each year the continued growth of our enough qualified men to operate and main­ economy demands more trained and edu;. tain the increasingly complex ·equipment .of ate a deterrent to antitrust violations; cated people. this jet:.e1ectronic-nuclear air age, the Air and second, they are a significant aid to The opportunity to learn conforms to one Force could be forced into a technological the Government in its enforcement pro­ of the important aims of our way of life­ retreat. gram. It is important to encourage the desire to give each child a chance. "In this technical age the military effec­ those injured to seek redress resulting Today your work to that end is more im­ tiveness of equipment seems to increas e in from antitrust violations inasmuch as portant than ever before in our history, be­ direct proportion to its complexity. If we the Government cannot singlehandedly cause the United States is now suffering from are forced into less complex equipment, we a shortage of trained scientific and technical are forced to be less effective. Thus, our detect and arrest all antitrust violations. skilled manpower shortage could, in effect, United States Senate cal breakthroughs on their part." that, under present law, the amount of from national leaders in the field of edu­ So goes this buildup of evidence. Only the treble damages that exceeds the cation. last summer General LeMay testified before plaintiffs actual damages awarded under Security now depends upon highly com­ the Senate that the serious lack of trained the antitrust laws falls within the com­ plex instruments-atomic reactors, electronic people in his command had resulted in more pass of gross income, and is, therefore, brains, radar warning nets, thermonuclear accidents, and more deaths. developments, supersonic missiles, latest The Soviet Union is now our greatest eco­ taxable. This upset the previous rule nomic and technological competitor. They that only the actual damages awarded in model jet planes, etc. In order to develop, produce, and maintain have launched what is probably the most these suits was taxable. such items, it is, of course, essential that we ambitious technical educational program As an inducement to injured persons have highly trained scientists, engineers, and ever undertaken by any country in the his­ or companies to press their own suits technologists. Upon their shoulders rests the tory of the world. against antitrust violators, and to insure responsibility for keeping America abreast of This Russian program is designed spe­ adequate compensation for the risks and the startling technological advances made by cifically to overcome the industrial and sci­ the possible enemy. entific lead of the West. Wl~en our military expense involved, it is desirable to have experts visited Moscow last June, Khrushchev the ·two-thirds damages treated as non­ We also want a constantly higher standard emphasized and reemphasized that fact to of living. To that end, technological ad­ them. taxable income. This bill would accom­ vances started originally in the interest of plish that purpose. national defense almost invariably aid in Current statistics show that this objective further development of the civilian economy. of the Kremlin is being realized. As example, the great stride made during The Communists are now our rivals in the World War II in electronics was one of th·e development of atomic energy. They ar.e Need for Scientific and Technical Educa­ chief reasons television promptly left the ahead in some phases of missile research and laboratory for the home, creating our great­ production, in jet-engine development, and tion in the United States est postwar industry. in certain modern combat planes. This growing Communist superiority in If we arrive at the ultimate goal of perma­ part of the qualitative defense race becomes EXTENSION OF REMARKS nent world peace through universal dis­ armament, we can, nevertheless, be sure that even more serious when we realize they are OF · already far ahead of us in nearly all fields we would still be involved in an extensive economic race. in the quantitative race--such fields as HON. LISTER HILL . trained military manpower, mechanized di­ OF ALABAMA Through technological developments, visions, submarines, and modern combat.air­ America could maintain its position in world planes. IN THE SENATE OF THE UNITED STATES markets without being forced to exploit labor in order to meet foreign competition. One of the reasons for this dangerous con­ Thursday, January 10, 1957 dition is that the Soviet Union has now Mr. Hil.,L. Mr. President, the Senator Therefore, much of our future prosperity built up the world's largest reserve of trained as well as our security is being decided in to­ scientific and technical personnel. from Missouri [Mr. SYMINGTON] deliv­ day's schoolrooms. A recent report of the Joint Committee on ered a most excellent, stimulating, and This educational battle, part of the current timely address when he spoke before the Atomic Energy states Russia now has an cold war, is one we cannot afford to lose. estimated 890,000 trained scientists and engi­ American Vocational Association at its But the facts show we are losing it. neers, whereas the United States has some meeting in St. Louis on December 6. Last year the Soviet Communists gradu­ 760,000. The address is filled with much valuable ated over twice as many engineers and scien­ Based on the present programs of each information on advances in science and tists as were graduated in the United States. country, the prospects for the years ahead scientific and technical education ill the This is a complete reversal of the figures of are even le.sS encouraging. Soviet Union as compared to our own only 6 years ago. In 1954, the latest year of available figures, efforts in this important field. The Sen­ As illustration of what this means to all the United States granted preliminary scien­ industry, including defense industry, the tific and engineering degrees to 53,507 gradu­ ator from Missouri speaks with great President of MIT testified before the Senate authority on the significance and the ates. This number is less than 50 percent that 800 companies were competing for 700 of of the number of similar degrees awarded in challenge of the shortage of trained his student&-and that this year the situa­ 1950. tion would be worse. scientific and technical personnel and By way of contrast, in 1954 the Soviets how this endangers our national secu­ In 1955, 420 men graduated from the conferred some 104,000 preliminary scientific rity. Carnegie Institute of Technology. Each of and engineering degrees, an increase for them I ask unanimous consent to have the these graduates had from 6 to 10 job offers. of approximately 150 percent in 4 years. address delivered by the Senator from Last year, a company seeking 30 aircraft Here are some illustrations of this startling Missouri printed in the CONGRESSIONAL designers spent $30,000 advertising for them trend: Only about 15 percent, or approxi­ RECORD. ' in 1 month. mately 375,000, of college students presentiy There being no objection, the address In January 1956, President Eisenhower enrolled in this country are in the scien­ himself reported to the Congress that the tific and engineering fields. In Russia, some was ordered to be printed in the RECORD, United States had an inadequate supply of 50 percent, or approximate1y 543,000 college as follows: scientists, particularly in the field of re­ students, are now studying in these fields. EDUCATION: THE F'UTURE OF AMERICA search. We can see the justification behind Pre­ Thank you for the honor of letting me In support of that position, Dr. Willard mier Bulganin's recent statement, when he present some of my views to this convention Libby, a member of the Atomic Energy Com­ asserted that by 1960 the Soviet Union would of the American Vocational Association. It mission, later testified before the Congress: have nearly doubled its scientific personnel. is a privilege to have your distinguished · or­ "In our own field of atomic energy, the In an address last year at Columbia Uni­ ganization convene in St. Louis. lack of scientific and technical personnel is versity, Allen Dulles, Director of the Central For 50 years Americans have watched with considerably more serious than money or Intelligence Agency, stated: interest and appreciation the growth and raw materials as a limiting factor for the "In round numbers the Soviets will gradu­ achievements of what is today the AVA-a future." ate about 1,200,000 in the· sciences in the great national education association. Dr. Libby added that the AEC has been able 10 years from 1950 to 1960, while the com- , Your organization and its predecessors to hire only a fourth of the trained people parable United States figure will be about have furnished the stimulus and much of .the required by its program. 900,000." 444 CONGRESSIONAL RECORD - HOUSE January 10 At the Atoms for Peace Conference in "The youth is 1 of 7 children in the These are but.some of the reasons we would Geneva, for the first time in many years, family. The father, uneducated, earns $300 appear to be passing over to the Communists some of our leading scientists met and a month. So the boy works as a draftsman superiority in trained technical people. talked with scientists from the Soviet Union. (very junior grade} to bring money into the Now, how are we going to break through After this conference, Lewis Strauss, house. Although he has been out of school this brainpower bottleneck? · Chairman of the Atomic Energy Commission, for 2 years, the youth is still available for No piece-meal approach can longer· suffice. stated: scholarship." · It is with that premise that we present the "What we learned was enough to shatter The second case. following seven-point plan: any complacency we may have in regard to "Lost, irretrievably lost: One brilliant re­ 1. National educational associations such our own imagination and ability." search chemist, a girl who ranked first in as AV A should go all out in their encour­ her class. Her mother, a widow, was sup­ agement of educational authorities in every In further confirmation of that position, State to adopt, as a requirement, the study Dr. John Dunnings, World War II director porting the girl and two other children on of research for atomic development at Co­ pay of $200 a month. of mathematics; plus some science and some lumbia University, said recently of the So­ "The girl tried for 6 scholarships, won 1 technical vocational training. paying one-half tuition at a local university. No group is better suited to work on this viets: Financially, she wasn't able to accept it. She job than your own. "Those of us who have come up against is working as a secretary and is helping the There will be objections, but they are more them in competition have had the utmost family. After 18 months of office work she than counterbalanced by the growing peril. respect for the quality of their scientific is not interested in returning to classes-not 2. In cooperation with State associations, and engineering achievements. even if she were given a full scholarship." national associations should recommend "In the guided-missile field, both short­ These cases are but typical of the problem some form of testing program in the ele­ range and intercontinental weapons able to of many other gifted high school students­ mentary schools. In this way we could carry thermonuclear warheads, they have young people who want to obtain the train­ discover, at a relatively early age, those stu­ done exceedingly well. Some estimates put ing, but haven't got the money. dents capable of doing college work. us several years behind them in certain Of the qualifieq men and women who do As early as the 6th or 7th grade, and con­ areas. If we fall behind in this competition enter college, only a relatively small number stantly thereafter, students should be in­ as we are in grave danger of doing, we lay study in technological fields. formed of the type and amount of all college ourselves wide open for the most fantastic One reason for this fact is the lack of engi­ scholarships available., of the job opportu­ international holdup." neering and science scholarships. nities in various engineering and scientific In that connection, did you notice how Most young people believe also that the fields, and of the great and growing need for quickly England and France agreed to a road to an engineering or science degree is skilled people in these areas. cease-fire in Egypt after Premier Bulganin too long, too hard, and too costly for the 3. The problem of inadequate laboratory threatened rocket warfare unless they eventual benefits de1·ived, because they must and shop facilities must be faced in con­ stopped fighting. face 6 to 10 years of expensive schooling, in­ junction with efforts to correct the growing This only confirms General Spaatz' recent duction into the armed services somewhere lack of schoolrooms. Funds should be ear­ warning to the effect that if the Russians along the way, and therefore a good chance marked for the former as well as the latter. were first with the intermediate-range mis­ of graduating in debt. In this connection, all educational associ­ sile--as is now probable--they could black­ Of those who do go to college, about one­ ations should take every possible step to mail all Europe. half are girls. Very few of the latter have show industry and business why it is in their Each month that goes by furnishes addi­ the mathematical training necessary to pur­ own interest to help in the training programs tional evidence that any nation which de­ sue engineering or scientific work. of those they are bound to need. veloped atomic and hydrogen bombs so soon To complete the picture, the record shows 4. We must face up to the growing prob­ after our own successful efforts, can never that but two of the originally qualified 10 lem of inadequate teachers, and take the again be described as scientifically retarded. actually receive an engineering or scientific necessary steps to correct this condition. Nor is there any evidence whatever that degree. This will require more recognition and better the present quality of Soviet science will There are some other reasons for this un- salaries. Even so, their service cannot be diminish. In fact, a report last March from fortunate condition. . measured in dollars and cents. Like the air the Joint Committee on Atomic Energy One is the inadequate high school curricu­ we breathe, they are essential to our con­ stated: lum now prevalent all over America. tinued existence. "The training given Soviet engineers and In some States, one-fourth of the high 5. In order to make it possible to train scientists is of a high order and compares schools teach no mathematics whatever. students who want to teach mathematics, favorably with the best in the United States In many high schools the athletic coach science, and vocational training, the Federal and Europe. Soviet universities, colleges, teaches the sciences as a secondary duty. Government should establish scholarships in and technical institutes have achieved a Only a few of our largest high schools have qualified colleges and universities. helpful combination of formal education really adequate science or shop facilities. Here is another field where, in its own with guided industrial practice and re­ These inadequacies are further emphasized interest, private industry should be encour­ search." by the almost universal lack of qualified aged to provide scholarships in areas of its And so it would appear obvious that un­ teachers. own choosing. less our present educational policies and pro­ The reasons for this latter situation are 6. There should be Federal scholarship grams are changed quickly and radically, well known to most of you. In practically programs at the college and graduate school any scientific lead we may have vis-a-vis the no community does the modern teacher, level. They likewise should be supported as Communists wil: soon vanish. whether his field be science or English, en­ much as possible by business and industry. To avoid that tragedy if possible, we must joy the respect afforded the local doctor, 7. The selective-service program should be first analyze why the United States is suffer­ lawyer, banker or businessman. revised so that students with extraordinary ing from such a shortage of trained people; Instead, the teacher is often viewed as the aptitude in engineering and the sciences and then seek the best means for correction. time-worn, absent-minded professor, con­ could either complete their active-duty re­ The chief reason for the present short sup­ tent to be relegated to a world of books, quirements during the summers between ply of scientists, engineers, and technicians blackboards and chalk dust. terms, or join a special scientific reserve corps is failure ·to develop our available potential As a result, his salary is low, and a subject comparable to ROTC, but one embodying a brainpower. of debate in the local school board. Often specialized training program. As example, the report of the Joint Com­ the best qualified man is not hired, rather Upon graduation, the young men involved mittee on Atomic Energy, previously referred the one who will accept the job for the least would serve their remaining military obli­ to, states that 8 out of every 10 potential pay. . gation in military jobs requiring technical engineer-science students in this country The Nation's potential brainpower is in the training; perhaps even in such vital agencies . never receive a college degree. hands of those who train our youth. They as the Atomic Energy Commission . Two of these 10 potentials do not take therefore control much of the future of our In .summary, this 7-point program seeks college preparatory courses; in other words, country. the education of those qualified young peo­ they have the ability, but do not use it. But because of low pay, lack of community ple who are now being lost to advanced Three more of the 10 do not go to college standing, and the general apathy of our citi­ learning. because they cannot afford the cost. zenry, fewer qualified people are now joining They are prerequisites to our goal for a As illustration of this latter problem, only the teaching profession. better life. last month the St. Louis Globe-Democrat This is pa.rticularly true in the fields of But they are also needed to maintain our published two case histories which illustrate engineering and science. freedom. To our ·youth, therefore, it is our duty what America is losing. In the some fifty-four colleges and univer­ These histories were described as follows: to pass on the torch of liberty. sities of Missouri, last year we graduated 3 Given the opportunity, they will accept, "Lost: One potentially fine engineer. A people trained to teach chemistry, and 2 with eager hands. boy who ranked fifth in a class of 200. IQ, trained to teach physics. In fact, in the 120. He. easily handled, in high school, entire United States, only 228 students were "So nigh is grandeur to our dust, mathematics, English, and social studies. In­ graduated to teach physics, an appalling con­ So near is God to man, stead of going to engineering school as lie dition if one faces up to what is going on in When duty whispers low, 'Thou must,' yearned to do, he had to go to work. the world today. The youth replies, 'I can.' " 1957 ... CONGRESSIONAL RECORD - HOUSE 445 Egypt's Defiance of United ·Nations point insist that Egypt cooperate in the Let us do first things first. For years establishment of a permanent peace in I have been trying to get this country to Intolerable the Middle East ceasing her raids against understand that with Russia in the Israel and recognize the existence .of United Nations, the organization can do EXTENSION OF REMARKS Israel as an independent, solvent state nothing. That is about all this organiza­ OF in the Middle East? tion has done to date. It did set up Israel by its own resolution, and that is the only HON. EMANUEL CELLER machinery of international law or trea­ OF NEW YORK ties that did set .it up. War has been go­ IN THE HOUSE OF REPRESENTATIVES With Russia as a Member the United ing on between Israel and the Arab Thursday, January 10, 1957 Nations Is Powerless To Secure World States ever since. Even now, with United Nations guards along the border between Mr. CELLER. Mr. Speaker, Colonel Peace Israel and the Arab States, sniping is in Nasser's arrogance has grown to the progress, just like it will always be, with point where submission to it becomes a EXTENSION OF REMARKS Russia smashing all attempts to bring matter of grave consequences. Seven OF about peace. In this location the Rus­ weeks have passed since the cease fire sians will carry on their propaganda and took place, but Egypt has taken upon HON. USHER L. BURDICK give aid and comfort to any agency that herself to impose condition upon condi­ OF NORTH DAKOTA will keep up the war. tion before meeting the terms of the IN THE HOUSE OF REPRESENTATIVES Now, what should we do? First, if we resolution. Steps were to have been Thursday, January 10, 1957 want a United Nations capable of bring­ taken to reopen the canal as soon as the ing ab-0ut world peace, the Russians cease fire had been negotiated. This Mr. BURDICK. Mr. Speaker, for should be expelled from the organization. has been done. Where there seems to­ years I have been trying to convince the Our representative in the United Nations day to be some agreement on the Suez American people that the United Na­ should be instructed to introduce and Canal clearance, every sign points to the tions as now constituted can never ob­ work for the passage of a resolution to fact that new and further conditions tain peace in the world. that effect. The evidence is overwhelm­ will be imposed. Right at the very beginning a member ing that Russia has violated the charter, The cease fire was to apply to all na­ was taken in that should not have been not only once, but repeatedly and arro­ tions concerned, including Egypt. But allowed to even associate with decent gantly, from the day she first took her Egypt today still continues her fedayeen governments. This Nation was not only seat. raids against Israel. This obstruction­ taken in, but it was one of the builders Secon~ly, this Government should im­ ism must be recognized for what it is, of the United Nations. It will be re­ mediately withdraw recognition of this a threat to the peace, a blow against membered that Molotov, Hiss, Harry dictator government, and show the Hun­ the authority of the United Nations. Dexter White, and other friends of com­ garians and the rest of the world that we The administration has not hesitated munism were the ringleaders in creating wash our hands of this nefarious power. to bring pressure to bear against Eng­ this organization. It was propagandized That would demonstrate to the people land, France, and Israel in the recent from one end of the world to the other who are struggling for freedom that the occurrence in the Middle East. We are as a great world peace organization. We United States abhors the atrocities com­ aware of no such· pressure upon the were taken in by this propaganda, and mitted against liberty-loving people who Egyptian Govern;ment to completely the Senate approved this Russian-cre­ are now in the clutches of the Russian comply forthwith with the resolution ated organization, with the power lodged dictators. of the United Nations. The resolution in the United States, Russia, Great Brit­ Third, the United Nations should re­ called for effective steps to reopen the ain, China, and France to veto, through organize, and accept as members only Suez Canal and to restore "secure free­ the Security Council, any move the those nations which are not afraid to dom of ·navigation'' through it and to United Nations might make. stand up for liberty and freedom, regard­ impose a cease fire upon all parties. The Now look at the record. Sixty-four less of the Kremlin. Forty nations unit­ resolution never called for the reopening times Russia has exercised her veto and ed in purpose would be better than 90 of the canal to await upon the with­ stopped any move for world peace that nations, with a great many of them drawal of England, 'France, and Israel. we or other nations have suggested. Not afraid of Russia and who will not take Egypt's treatment of nationals of only that, but the Russians have violated action against this cruel military gov­ British and French residents in Egypt every section of the heralded charter. ernment. and her ignominious treatment of na­ They have not only aided and abetted Fourth, we should aid only those coun­ tionals of Jewish faith must surely arouse other nations in aggression, · but have tries which are loyal to freedom, and the indignation of the civilized coun­ engaged in inhuman aggression them­ omit those which are not. tries of the world. To all of this has selves, in clear and unequivocal violation Fifth, we should keep right on arming the administration been silent except for of the charter which they were pledged this country, for "eternal vigilance is the mere expression of "concern." There is to support. price of liberty.'' Do not let any Bul­ a firm road to peace with honor. Moral Recently the President leveled an in­ ganin try to stop the development of our indignation expressed against some of:. dictment of 11 separate counts against defenses. Do not go to sleep while on fenders and withheld from others is the the dictators of Russia, all of which were guard. Isolate the Russians and quaran­ setting up of a dual standard. We have true. tine them, and the public opinion of the allowed much too much time to elapse The invasion of Hungary has aroused world will support that procedure. awaiting Nasser's compliance. We have the world to the menace of the dicta­ Sixth, have nothing to do with any na­ permitted too much dictation by Mr. tors of Russia. Their deeds in Hungary tions that trade with the Russians. That Nasser of the terms which suit him best. brand them as unworthy of associating would include England, for that country We have taken the lead in the United with just governments, and ought to has never stopped trading with them. If Nations against England, France, and convince the world that the ideology the England wants money to protect her Israel for their activities in the Middle Russians have propagandized through­ widespread empire, or to start a war she East. Do not the arrogant tactics of out the world is not at all what commu­ cannot finish, let her get her money from Egypt call for our taking leadership in nism is. At this juncture, and with _the Russia. the United Nations to the end that Egypt President's indictment clearly in mind, Eighth, banish the fear of Russia that comply ·not only in the matter of the what are we to do? Giving the President has permeated this country for several complete clearance of the canal, but per­ a blank declaration of war to carry years. Russia is too weak to risk a war mitting accessibility of the canal to all around in his pocket to be used when­ because of conditions in her own coun­ countries once cleared? ever he thinks it should be used will not try and the feeling of the people who Moreover, must not now the United settle the matter, nor will it be a sub­ have been subjugated by her. Banish Nations insist upon United States lead­ stitute for what we can do without appeasement. In that respect, the oc­ ership that Egypt cease its maltreatment granting this power of Congress to one casion of the President's message was of Jews and other nationals within its man, however popular or however able the first time this country ever st-Ood up borders? Must we not likewise at this he may be. on its hind legs and told the Russians 446 CONGRESSIONAL -RECORD - HOUSE January 10 what they should have been told when The indomitable desire of the Ukrainian annual popularity lists compiled by we let them into Berlin. people for national freedom has not been theater exhibitors and critics. His films In any armed conflict with any na­ extinguished. The annual observance have been consistent box-office successes, tion I think Congress should pass on the of the anniversary of Ukrainian inde­ and he is the one star whom visitors to situation and not leave it to any one per­ pendence is one way of keeping alive this Hollywood most often ask to meet. son to do what only Congress is author­ desire for freedom and the spiritual af­ Even a partial list of Mr. Gable's mov­ ized to do under the terms of the Con­ finity of the Ukrainian people with all ies reads like an all-time ten-best, and stitution. other freedom :fighters and with all na­ his leading ladies constitute an aristoc­ To carry out the views I have taken of tions enjoying the fruits of freedom. racy of present and past Hollywood. this situation I am reintroducing in this I am proud to know that Americans of Among the King's queens have been session resolutions I have had before Ukrainian descent have not forgotten Norma Shearer, Joan Crawford, Jean Congress for the past several years. their kinsmen abroad and are giving Harlow, Greta Garbo, Vivien Leigh, Ava Should the steps be taken that I have them all possible moral encouragement. Gardner, Deborah Kerr, Grace Kelly, outlined, I do not believe any war will On this occasion of the anniversary of who is now Her Serene Highness of Mo­ break out. In the Middle East there is their independence, we send our heart­ naco, and many others. only one question involved and that is felt greetings. We pray that the hope In addition to his achievement as oil. Take away the oil and the intense for a better day when the Communist king of the motion-picture industry, scramble for it will end. We want to nightmare will meet its ignominious end Mr. Gable has a strong sense of duty to make sure that in this area we take no will be realized soon and the people of his country. During World War II, Mr. action to protect the big oil moguls who the Ukraine will know the true meaning Gable enlisted in the Army Air Corps as are there draining off the oil. If Ameri­ of national independence and freedom. a private. can capital wants to invest in this After serving as an enlisted man, he troubled area the United States should qualified for officer candidate school, not be called upon to protect that capi- from which he was graduated and com:.. tal. - A Tribute to Clark Gable, a Great missioned a second lieutenant and was If we cannot expel Russia we should Example of Americana sent to England with a bomber group. withdraw from the United Nations and He served with distinction for 2 years set up another organization for world with the Eighth Air Force in Europe. peace, even if we do not have half the EXTENSION OF REMARKS He took part in the raid on the bombing nations with us .who. are in the United OF run that blasted the Ruhr Valley and Nations today. Those nations which HON. WAYNE L. HAYS became one of three "prizes" for whom now vote against us or hide in the Hermann Goering offered a price dead closets of abstentions should be left out. OF OHIO or alive. Gable won the Air Medal for IN THE HOUSE OF REPRESENTATIVES five combat missions, and he was sep­ Thursday, January 10, 1957 arated from the service with rank of ma­ Thirty-ninth Anniversary of Ukraine Mr. HAYS of Ohio. Mr. Speaker, as jor. On returning to civilian life, Mr. Gable resumed his film acting career as Independence a representative of the State of Ohio, I wish to pay tribute to one of Ohio's proud the reigning star of Hollywood. sons, Mr. Clark Gable. Long live the king. EXTENSION OF REMARKS In his lengthy career, Mr. Gable con­ OF tributed much to the enjoyment of mil­ -HON. VICTOR ·L. ANFUSO lions. At all times he was ready to fight Representative Wayne Hays Elected Pres· OF NEW YORK for the principles which have made this country great. Modest and conservative, ident of NATO Parliamentary Confer· IN THE HOUSE OF REPRESENTATIVES he is also one of the friendliest and ence Thursday, January 10, 1957 approachable of all Hollywood stars, and Mr. ANFUSO. Mr. Speaker, the 39th the personification of all that is best in EXTENSION OF REMARKS American manhood. He is the example anniversary of the independence of the OF Ukrainian Republic, which was founded of how a young American lad can ad­ in 1918, occurs today, Tuesday, January vance himself and become famous. HON. FRANK E. SMITH 22. It was on January 22, 1918, that the In the continuing scramble for recog­ OF MISSISSIPPI Ukrainian Constituent Assembly met and nition as king of Hollywood, Mr. Clark IN THE HOUSE OF REPRESENTATIVES adopted a proclamation establishing the Gable is still the winner-and king. independence of the Ukraine. Even his rivals, pretenders to the throne, Thursday, January 10, 1957 For many centuries the Ukrainian peo­ readily grant that, after a quarter of Mr. SMITH of Mississippi. Mr. ple were subservient to Russian domi­ a century, Mr. Gable still reigns unchal­ Speaker, I had the high honor to be one nation. The freedom gained by the lenged as one of the world's most popular of the delegates from the House of Rep­ Ukrainians was shortlived, however, and best known movie personalities. resentatives to the Conference of Par­ since in 1920 the country was overrun He was born William Clark Gable near liamentarians of the North Atlantic by Russian Communist imperialism and Cadiz, Ohio, son of the late William H. Treaty Organization held in Paris in its freedom was destroyed. Since then Gable an oilfield worker, and Adeline November. There were nine delegates the 40 million people of the Ukraine have Hershelman Gable. His mother died from the House of Representatives, along been enslaved as a captive nation of the when he was a baby and he was raised by with a distinguished group from the Kremlin rulers. his stepmother, Jennie Dunlap Gable. Senate. The Ukraine was one of the first vic­ He first went to work as a timekeeper for The 250 delegates at the Conference, tims of Communist aggression. Its peo­ a rubber factory in Akron when he was representing each of the NATO coun­ ple have paid a tremendous toll in human 15. From these modest beginnings, he tries, chose as president one of our own suffering, including the deportation of progressed until he obtained his fabulous Members, Representative WAYNE L. HAYS, some 6 million Ukrainians to the Rus­ world-recognition and accolade. of Ohio, chairman of the House delega­ sian slave-labor camps. During all these Time cannot wither nor custom stale tion. Mr. HAYS presided over the de­ years, the Ukrainians have waged a "King" Gable's infinite appeal. Mr. Clark liberations of the Conference with great ceaseless and unrelenting fight for their Gable recently completed his 56th star­ skill and tact. His choice as presiding freedom, perhaps not as spectacular and ring role in a motion picture, The King officer was a great honor to the United dramatic as is the fight of the Hungarian and Four Queens, for United Artists States and to the House of Representa­ people, but it must be remembered that release, which has already received wide tives. the Ukraine is under Russian domination reception wherever shown and continues There was a general consensus of all for a longer period and is geographically to make him the idol of millions. delegates that the Conference was a val­ closer to Russia. It's just a quarter of a century since uable contribution to the strength of the Nevertheless, their struggle for their he first achieved stardom, and ever since entire NATO program. We met at a national liberation has never stopped. he has been at or near the top of the time of grave misunderstandings among 1957 CONGRESSIONAL .RECORD - HOUSE 447 the principal NATO powers. The ex- During the past year, however,·fanned by Independent Business. Included here . change of views about common prob­ booming prosperity, prices have in­ too is the text of my measure: lems will contribute greatly to the elimi­ creased, on an average, 2 percent, or THE SMALL BUSINESS ADMINISTRATION AND nation of some of these misunderstand­ about as much as in the 3 preceding RELATED ACTIVITIES-A PRELIMINARY RE­ ings. years. This is a danger sign, and the PORT President acted forthrightly in calling (A report of the Subcommittee on Govern­ -the country's attention to it, and in pro­ ment Procurement, Disposal, and Loan Ac­ The President's Warning About' posing remedies to checkrein too rapid tivities to the Select Committee on Small price increases. Business, House of Representatives, 84th Inflation Cong., 1st Sess., pursuant to H. Res. 114, Coupled with his warnings against in­ a resolution creating a select committee flationary dangers, the President, in his to conduct a study and investigation of EXTENSION OF REMARKS state-of-the-Union message, proposed a the problems of small business) study be made of the Nation's financial OF system, obviously including a study of LENDING POLICY AND PROCEDURES HON.-RUSSELL V. MACK control of credit and credit agencies. Loan Policy Board Such a study might prove extremely use­ Section 204 (d) of the act creates a Loan OF WASHINGTON ful by providing committees with fac­ Policy Board of the Small Business. Adminis­ IN THE HOUSE OF REPRESENTATIVES tration, consisting of the Administrator of tual information on which future wise the Small Business Administration as Chair­ Thursday, January 10, 1957 legislation can be based. What the Na­ man, and Secretary of the Treasury and the tion needs in its fight against inflation Secretary of Commerce, or their designees, Mr. MACK of Washington. Mr. is well-thought-out, long-range, sound as members of such Board. The act by its Speaker, the year 1956 just ended was policies, not newly hatched panaceas to language, created the Board to establish gen­ the most prosperous in the Nation's please voters rather than be of enduring eral policies which shall govern the gr~nting history. long-range benefit to them. and denial of applications for financial as­ The year 1956 saw 65 million Ameri­ sistance by the Administration. cans, 2 million more than ever before, Section 204 (a) of the act states: "In order to carry out the policies of this gainfully employed, and at wages which, title there is hereby created an agency under on the average, were 7 percent higher The Loan Policy Board of the Small the name of Small Business Administra­ than ever had been paid hereto!ore. The tion • • • and it shall not be affiliated with gross national output of goods and serv­ Business Administration Should Be or be within any other agency or department ices in 1956 was $412 biliion, or a gain of Abolished of the Federal Government." $21 billion over the previous all-time It is clear from the evidence adduced at high attained in 1955. The gross na­ the hearings that the Small Business Ad­ ministration, in order to perform the func­ tional output of $412 billion compares EXTENSION OP REMARKS tion for which it was created, should be with $345 billion in the last year-1952- or charged with the duty and responsibility of of the Truman administration. formulating loan policy. As an independent, The Prudential Insurance Co.'s Busi­ HON. FRANK THOMPSON, JR. unaffiliated agency, the Administration ness Forecast for 1957 anticipates a fur­ OF NEW JEBSET should be responsible only to the President and to the Congress for its actions. The ther increase this year of $20 billion in IN THE HOUSE OF REPRESENTATIVES the Nation's total output of goods and evidence indicates that the Loan Policy Board Thursday, January 10, 1957 makes no substantial contribution in carry­ services. ing out the intent of Congress with respect The high level of prosperity of the re­ Mr. THOMPSON of New Jersey. Mr. to providing assistance for small business. cent past and the prospects that it will Speaker, I am introducing today a bill to The Board has met approximately once a continue is most encouraging but not amend the Small Business Act of 1953 to month since its inception and, although it without its dangers. abolish the Loan Policy Board of the has issued a loan-policy statement, the rec­ More buying means more demand for Small Business Administration and to ord is clear that the determinations were always unanimous and the Board merely goods. Heavy demand often stimulates make the Small Business Administration followed the recommendations of the Ad­ price advances. Too rapid advances in a permanent agency of the Government. ministrator of the Small Business Adminis­ prices can fan the fires of a dangerous The Subcommittee of the Select Com­ tration. Mr. Wendell B. Barnes, Adminis­ inflation which, if unchecked, can grow mittee on Small Business of the House of trator of the Small Business Administration, into an economic disaster. President Representatives recommended elimina­ testified: Eisenhower, therefore, in my opinion, did tion of the Loan Policy Board, and also "Sometimes th<' Loan Policy Board con­ well to devote a major part of his state­ declared the continuation of SBA was a siders something for a month or two before we move into it. • • • I have prepared of-the-Union message this year to warn­ necessity. These recommendations were most of the changes in the policy my­ ing Congress and the country of the dan­ contained in House Report No. 1045, 84th self. • • • There has been uniformity, or gers of inflation and to suggesting pre­ Congress, 1st session. Members of the at least an agreement, in the changes that ventive measures which might avoid it. subcommittee were Representative ABRA­ have taken place. • • • We [Small Busi­ History-ancient, medieval, and mod­ HAM J. MULTER, Democrat, of New York, ness Administration] felt that a change ern-is filled with examples of how run­ chairman; Representative JoE L. Evrns, should be made and they should all be put away inflation has ruined the security Democrat, of Tennessee, and Represent­ on the same basis. The Loan Policy Board concurred." · and well-being of many nations. The ative R. WALTER RIEHLMAN, Republican, The record is clear that the determinations President's warnings against inflation of New York. of the Loan Policy Board were based on were timely, constructive, and com­ My bill is designed to carry out the recommendations of the Administrator and mendable. recommendations of the subcommittee. were al ways unanimously passed by the The Eisenhower administration during In addition, my bill, if it is adopted, will Board. Mr. Robbins, Assistant Secretary of the past 4 years has been quite successful indicate to the 4 million or more small­ the Treasury, testified: in keeping prosperity at an all-time high business men in our country that the "Mr. Chairman, I think it is fair to say Congress is well aware of the plight they that in my recollection there has never been and at the same time holding in check a decision of the Policy Board ~.rrived at in inflationary forces. are facing when they are confronted with any way except by unanimous agreement. During President Truman's last 4 the need for financial assistance where There has been no attempt to override the years as Chief Executive prices went up, such assistance is not available through Administrator on the part of other members up, and up. During his administration private banking institutions. of the Policy Board. He is the Chairman of I include here excerpts from the re­ the Board and his recommendations are re­ prices went up almost as fast as wages ceived sympathetically and almost without increased, thereby depriving workers of port of the Subcommittee on Govern­ exception they are adopted." benefits of pay increases. ment Procurement, Disposal, and Loan Consequently, the prccedure of the Loan During the first year of the Eisenhower Activities to the Select Committee on Policy Board appears to delay important de­ Small Business. I also include a letter I cisions and hampers efficient administration administration prices advanced only rather than serving to expedite the impor­ about 2 percent in 3 years, while during have received from Mr. George J. Burger, tant lending functions of the act. In view the same period wages and income of vice president in charge of the legisla­ of the foregoing experience, this subcom­ citizens increased several times that fast. tive activities, National Federation of mittee recommends that section 204 (d) CONGRESSIONAL 'RECORD - HOUSE January 1'0

'Of tbe act be repealed.· The ·sub·commlttee · ury shoutd also be removed from SBA's·Loan (c) Any . referen<:e to the- Loan Policy !eels that the ·responsibility and jurisdic­ Policy Board. Board of the Small Business Administration tion for the policies, as well as the operations. As I have indicated, these recommended in any other law, Executive order, delega:. of the Small Business Administration should changes will not make SBA an independent tion, rule, regulation, certificate, directive, ·lie solely within the administration of the agency; but they should at least give SBA 'instruction, er ether official action in force agency. It is clearly the intent of the Con­ a more independent voice, and they should on the date of enactment of this act shall be gress that the Administrator be responsible tend to fix responsibility upon the SBA Ad­ deemed to refer and apply to the Admin­ for the activities and functions of the agency ministrator. It is my opinion that respon:. istrator of the Small Business Administra­ and that the agency be wholly independent sibility for SBA's conduct is too widely tion .. and unaffiliated as provided in section 204 diffused. SEC. 2. (a) Section 217 (b) of the Small (a) of the act. Business Act of 1953 is amended by striking out "which occurs while this title is in NATIONAL FEDERATION OF effect." ADDITIONAL VIEWS OF HON. JOE L. EvINS ON INDEPENDENT BusiNESS, SBA LOAN POLICY AND PROCUREMENT ACTIV• (b) Section 221 of the Small Business Act Washington, D. C., January 10, 1957. of 1953 is hereby repealed. I TIES Hon. FRANK THOMPSON, Jr .• I agree with much of what my colleagues House Office Building, have said in their report, and any dissent Washington, D. C. which I may have is based on the view that DEAR CONGRESSMAN THOMPSON: Your ac­ certain matters have not been touched upon tion, which is continuing action to help An Evii Lobbying Practice and certain things have not been said which, 'small business, in the introduction of your I strongly feel, should be said. ·bill which provides that the Small Busine~s EXTENSION OF REMARKS My colleagues place too much hope in their Administration be made a permanent agency OF proposals for making SBA an independent and, more important, your bill providing · agency responsible only to the President and for the elimination of the policymaking to Congress. SBA is not an independent board, is a very forward step and will be HON. JAMES ROOSEVELT agency. Such independent Federal agencies welcomed by small business throughout this OF CALIFORNIA as exist are conceived by law to be inde_­ Nation. IN THE HOUSE OF REPRESENTATIVES Furthermore, your action I believe will be pendent of the President, the Congre:s, and Thursday, January 10, 1957 the judiciary, except of course the laws urrder welcomed l:iy the entire personnel of the which they operate are subject to review by Small Business Administration, which, in Mr. ROOSEVELT. Mr. Speaker, there Congress, as their actions are subject to re­ itself, will place the · responsibility on the has recently been addressed to me a let­ view by the courts. SBA was not so con­ Administrator in carrying out the intent of ter from the general manager of the Na­ ceived. It is responsible to the President, Congress for needed financial relief for effi­ and its policies are made by the President, cient independent business. tional Rural Electric Cooperative Asso­ or by those to whom the President delegates The action you have taken, in substance, ciation, Mr. Clyde T. Ellis. his authority. Changing the law to remove is what we in the federation by direct na­ The use of public advertising mediums the Secretaries of Commerce and the Treas­ tionwide vote of our members took in our ·for political propaganda has been on the ury from SBA's Loan Policy Board will not personal appearances before the respective increase in recent years. This practice t ransform SBA into an effective agency for platform committees of both the Democratic ·is inherently a vicious one, for not only making business credit available to small and ·Republican National Conventions in has it been allowed to become a legiti­ firms; nor will changing the law to direct Chicago and San Francisco. We recommend­ mate tax deductible item at the expense other executive agencies and departments to ed "continuation of Small Business Admin­ cooperate and consult with SBA obtain for istration as a fully independent agency, with of all the taxpayers, but it is a use by small business a fair share of Government control solely in the administration respon­ management of stockholders' equity purchases and contracts. These things will sible only to Congress." ·which has not been authorized by them, be achieved only when the policymakers of It will be found also that the federation and which, in many instances, does not the executive branch of the Government in its many appearances before respective represent the views ·of -the· stockholders determine that these things shall be congressional committees, from the very first or owners of the business. achieved. instance and continuing on, recommended The use of this lobbying program by I agree, however, with my colleagues' rec­ the elimination of this policy board, as it was our opinion from our daily experience in the private utility companies has become ommendations for removing the Secretaries ·more and more widespread, and the let­ of Commerce and the Treasury from the SBA the small-business activity that the sole re­ Loan Policy Board. sponsibility, as to this needed helpful act to ter which Mr. Ellis has written to me As for the Secretary of Commerce, Con- · assist small business, should rest entirely ex­ draws attention to what seems to be a . gress considered the question of making SBA . elusively with the Administrator as to its particularly flagrant example. a part of the Department of Commerce at the . overall policy, of course, always being sub­ I insert it in the RECORD for the infor­ time its basic law was passed. And Con­ ject to review by the Congress. mation of my colleagues, with the hope gress considered this question earlier when It is our hope that the Congress will act that they will consider ways and means the Small Defense Plants Administration, on your bill immediately and this, in itself, ·to remedy an increasingly evil practice: SBA's predecessor agency, was created. On will be a definite indication of the respective both occasions Cong1·ess rejected this idea, party platforms that they intend to keep JANUARY 3, 1957. and for reasons which are perhaps sounder their pledges to aid small business of this Mr. CLYDE T. ELL.IS, today than they were on those occasions. It Nation. General Manager, National Rural Elec­ was decided to make "the small-business Sincerely yours, tric Cooperative Association, agency separate from the Department of GEORGE J. BURGER, Washington-, D. C. Commerce for the reason that it was widely Vice President. DEAR MR. ELLIS: Thank you for your letter believed that the Department of Commerce and enclosures of December 31. is essentially a big business agency, formulat­ A bill to amend the Small Business Act of As I am not a member of the committee ing policies for the benefit of big business. 1953 to abolish the Loan Policy Board of which considers this legislation, perhaps the best thing that I can do to call it to the The comme~cial interests of big business are the Small Business Administration, to not always in harmony with the commercial make the Small Business Administration a · attention of my colleagues is to see that it interests of small business. If it is sound permanent agency of the Government, and is entered into the CONGRESSIONAL RECORD, policy to have a separate agency for small for other purposes . which I shall do at an early date, provided that some other member of the proper com­ . business, then I question the propriety of Be it enacted, etc., That (a) the Loan Policy having the Secretary of Commerce making mittee has not already done so. Board of the Small Business Administration With all good wishes to you in your efforts policy for the small-business agency. Tl:le is abolished. to defeat this pernicious propaganda, I am (b) Subsection (d} of section 204 of the Secretary of Commerce should be removed Very sincerely yours, from SBA's Loan Policy Board. Small Business Act of 1953 is amended to If the amount of SBA's lending were large read as follows: JAMES RooSE\.'EL'l'. enough to have any appreciable effect upon " ( d) The Administrator shall establish the Nat ion's money supply, or upon the na­ general policies (particularly with reference NATIONAL RURAL ELECTRIC tional debt, then there might be an argu­ to the public interest involved in the grant­ COOPERATIVE ASSOCIATION, Washington, D. C., December 31, 1956. ment for having the Secretary of the Treas­ ing and denial of applications for financial Hon. JAMES ROOSEVELT, ury on the SBA's Loan Policy Board. At assistance by the Administrator and with reference to the coordination of the func­ United States House of Representatives, least I would agree that money and debt tions of the Administration with other activ­ House Office Building, management should be coordinated. But ities and policies of the Government) which Washington, D. C. the amount of SBA's prospective lending is shall govern the granting and denial of ap­ DEAR MR. ROOSEVELT: Enclosed for your in­ too small to be a significant factor in such plications for financial assistance by the formation and study is a copy of an adver­ coordination. The Secretary of the Treas- Administration." tisement appearing in Look magazine on 1957 CONGRESSIONAL RECORD - HOUSE 449 November 13, 1956. ·It may have appeared . We recognize the right of free speech, in­ For all we know, his life may have been in several other publications simultaneously; cludUig _the right of the capital stockowners as has been the custom with such ads. of privately owned electric companies to use shortened by the conscientious devotion This advertisement is not sales advertising. such propaganda advertisements to place to his public duties that characterized It is not goodwill advertising. It is propa­ their views on current issues before the pub­ our departed colleague. ganda advertising, designed to convey a com­ lic, provided the owners do it at their own That was BILL GRANAHAN; who never pletely false picture, and for lobbying pur­ expense. But, we are convinced that reme­ reckoned the cost to himself, when he poses. There can be little doubt that it is dial legislation is today necessary to close was engaged in helping others. carefully designed to poison the minds of the the door to the use of ratepayers' money That was his sublime faith in his God American people and their public officials collected to pay the cost of a public service and in his country. against rural electric cooperatives and public for their own private purposes. agencies such as municipalities, public power We further question whether as a matter Today and every day we pay tribute to districts, and the Federal power program. of policy a democracy can afford to permit the memory of Congressman WILLIAM T. The advertisement is part of a lobbying privately owned public-service monopolies-­ GRANAHAN, an exemplary American. program that has been carried on through monopolies licensed to provide the public national magazines, daily newspapers, radio, with a basic service and authorized by the TV, and other media for several years, with legislature and public courts to engage in the tempo greatly increased over the past few public-service business-to engage in un­ Celler Seeks Antitrust Enforcement Action years. The cost of this propaganda cam­ limited propaganda activities. paign unquestionably runs into many mil­ And if, and to whatever extent such pro­ by Justice Department Fellowing Latest paganda spending is tolerated, the cost of it, lions of dollars a year. we insist, should be borne by the owner­ Concerted Hike in Newsprint Prices · The total cost of this program of mis­ stockholders and not by the ratepayers. representation and political pressure is paid The farmei:s• rural electric systems of the by those who must of necessity buy elec-· country have a direct interest in these prop­ EXTENSION OF REMARKS tricity from the companies who sponsor aganda expenditures for two reasons: OF these ads, for they are monopolies within 1. Nearly two-thirds of the rural electrics their respective areas. In addition, since the are purchasing their wholesale power re­ HON. EMANUEL CELLER costs of such ads and other manipulations quirements from the privately owned public OF NEW YORK of the public mind are deductible expenses utilities-for which tJ:;tey paid them $59,- IN THE HOUSE OF REPRESENTATIVES for tax purposes, 52 percent of the cost of this 449,112 in the fiscal year ending June 30, propaganda comes out of the Federal Treas­ 1955; and · Thursday, January 10, 1957 ury. We do not believe that it was the 2. Nearly one-third of the rural electrics Mr. CELLER. Mr. Speaker, under intent of Congress for consumers and tax­ are purchasing all or part of their wholesale payers to pay the cost of their own misinfor­ power requirements from the Federal whole­ leave granted to extend my remarks in mation. sale power agencies under laws being at­ the RECORD, I include the following: · The attached ad alleges that there is a tacked by these ads-and for which the rural Representative EMANUEL CELLER, Democrat, privileged class of people in this country electrics paid the Government $26,844,795 in New York, chaitman of the House Judiciary who pay little or no taxes in their electric the fiscal year ending June 30, 1955. Committ·ee and also chairman of its Anti­ bills. This privileged class, according to the Sincerely, · trust Subcommittee, today issued the fol­ ad, is made up of those people who secure CLYDE T. ELLIS, lowing statement concerning the recent an­ their electricity from Government wholesale General Manager. nouncement by the Bowater Paper Co. of a power sources. prospective $4 per ton increase in the price The rural electric cooperatives purchased of newsprint, the ordinary paper on which during the year ending June 30, 1956, only newspapers are printed: 6 percent of all federally generated power, Congressman William Granahan "We are again confronted with a course of whereas private power companies secured 10 T. conduct which those who must depend upon percent and private industry 20 percent. Ob­ newsprint suppliers have seen repeated with viously, the implications with respect to taxes EXTENSION OF -REMARKS monotonous regularity and frequency over are false. OF the years. The familiar pattern here pre­ We could go on criticizing this particular sented was clearly etched upon the record of ad and others, but we are sure you will rec­ HON.THOMASJ.LANE our Antitrust Subcommittee when it com­ ognize these and the other misleading and OF MASSACHUSETTS pleted its extensive investigation of this the categorically false statements contained problem in 1950. in this and similar ads. IN THE HOUSE OF REPRESENTATIVES "The current round of price increases was It seems to us that the time has long Thursday, January 10, 1957 set of! initially by the Abitibi Power & passed when the Congress should take legis­ Paper Corp., Ltd. Two other major Canadian lative notice of the use of tax-free funds for Mr. LANE. Mr. Speaker, the eulogy producers besides the giant Bowater inter­ propaganda purposes by so-called regulated we pay our late colleague, Congressman national paper organization promptly fell in monopolies and enact statutes to place the WILLIAM T. GRANAHAN, of the Second line in a process sometimes politely referred cost of these programs on those who really Pennsylvania District, come.s as some­ to as price leadership. sponsor them. For, under the law of the thing of an anticlimax. "The millions of Americans in urban or land as interpreted by the highest courts, in For the people of his own district have rural life who take for granted the regular handling funds collected for the privileged appearance of their newspaper have a com­ conduct of a public service, they are in the expressed the perfect tribute by electing pelling interest in tl-is issue. A spokesman same position as agents of the State engaged his widow to fill the vacancy that re­ for the American Newspaper Publishers As­ in a public business. sulted when Bill was called to his sociation asserts that, in view of the chronic In this connection, the full House Com­ Maker. newsprint shortage, publishers are in a mittee on Government Operations, 84th Con.: Bill always carried more than his straitjacket and at the mercy of the first mill gress, has at least recognized the problem. share of responsibility as a Member of which decides to raise the price. Similar In House Report No. 2279, the committee Congress, and never claimed any special price increases a year ago likewise touched made this recommendation: credit for it. But to those who knew him, off a series of sharp protests by both Amer­ "(6) Congress launch a full-scale joint in­ ican and Canadian publishers and by public vestigation by both Houses to determine he had a profound knowledge of human officials who contended then that the profits whether or not there is an organized effort nature, and a grasp of complex issues, of the papermakers were more than adequate cf the private power companies to influence that strengthened the Interstate and even at the old prices. They further point the Federal administration, the Congress, Foreign Commerce Committee of which out that newsprint prices have risen further the governments of the States, and the po­ he was a member. and faster than the general level of whole­ litical life of the Nation." His word was his bond. sale commodity prices. Many of these ads have in the past branded · He was dependable-all -the way. "The country's newspaper publishers, both as socialistic programs of the Federal Gov­ His constituents had a high regard large and small, may well ask if collusive ernment, such as Rural Electrification Ad­ pricing by newsprint manufacturers exists ministration, TVA, Bonneville, Southwest­ for him, and to continue the Granahan in the year 1957 when newsprint prices rise ern Power Administration, Southwestern tradition of fine public service, they to the same level at about the same time, Power Administration, Bureau of Reclama­ elected his widow to carry on in the post and remain identical for almost all produc4 tion, Corps of Engineers, etc. In so doing that he had ably filled for many years4 ers; when interlocking contracts of a long4 the authors of these ads are apparently en­ We welcome Kathryn as his replace­ term nature still relate the price charged bJ deavoring to cast serious doubts on the in­ ment, for her presence will always re­ many newsprint mills to that establishec.L by their competitors; and when the so­ telligence, and judgment of the Members of minc us of her late husband, and our called 'zone system' is still generally adhered Congress in passing legislation Which they good friend. to in quoting newsprint prices in the United regard as vital to the welfare of the Nation. That is the way that Bill would want it. States. CIII--29 450 CONGRESSIONAL RECORD - HOUSE January 10 "The zone system, to single out only one · "From the viewpoint of antitrust enforce­ Today it should be for stored water is the of these factors, underscores the extent to ment, this situation calls attention to the key. Stored water means flood control and which the newsprint producing concerns may rebuff which the Deparment of Justice met water stored during the runoff is the simple have departed from accepted principles of in 1947, when one of the Canadian provinces key to our future power development here in free and open competition. The map of the where most of the mills are located, enacted the Columbia. River drainage basin. The United States has been sectioned into 10 a statute in effect barring the Justice De­ Army engineers should be given a clear man­ d ifferent pricing zones by the major news­ partment from utilizing essential corporate date, as should other interstate agencies, to print producers. Under this arrangement, records of Canadian firms. While this still undertake studies with storage first in mind. prices for each zone are identical for almost serves to impede the orderly functioning of We should know the potential in the light of all producers, regardless of how far each is American law-enforcement agencies, a pos­ the newest knowledge and procedures-and located from the point where the newsprint sible solution may be found by vigorous ap­ we should know the other problems involved is to be received and used. This system plication of the provisions of the Sherman and be about the working out of their solu­ inakes no allowance for the varying freight Act authorizing seizures of property owned tion. rates which would ordinarily be applicable by antitrust violators shipped in United Stored water should be the main accent between different plants and the point of States commerce. on our plans for future power development consumption. The proof of the pudding is "I would hasten to emphasize that the sig­ and future power supply. that 'phantom freight' must be paid to cer­ nificance of newsprint transcends national The statistics are relatively simple: To con­ tain producers in those instances where the boundaries and that responsible Canadian tain floods, we planned projects that would charge for freight included in the predeter­ officials and publishers are no less distressed reduce the 1894 flood from 1,230,000 acre­ mined zone price is greater than the actual than their American counterparts by the feet to 800,000 acre-feet at the Dalles Pas­ freight costs from the mill to the destina­ apparent failure of the large producers to sage. This plan, completed in the year 1948, tion point. exercise reasonable self-restraint in the pub­ called for 27 million acre-feet of usable stor­ "The continuing trend in this industry ls lic interest." age-21 million of which would have been cause for serious concern. Monopoly here particularly effective in controlling such a would pose a threat to a free and healthy flood as 1894--0r 1948-the flood year in press, which is one of the cornerstones of Storage Dams which this main control plan came out. our representative form of government. The Such a plan, it is claimed, would have elimi­ freedom to write, to report news, to express nated 90 percent of the damage suffered in ideas, to differ-all these become meaning­ EXTENSION OF REMARKS 1948. less if the materials for mass communica­ OF The plan was well distributed over the tion are lacking, whether because of insuffi­ Columbia system. It included among many cient supplies of newsprint paper or be­ HON. WALT HORAN other dams and sites: Hungry Horse, Grand cause of prices beyond a newspaper's ability OF WASHINGTON Coulee, Libby (future). Priest Rapids, Joh:1. to pay. IN THE HOUSE OF REPRESENTATIVES Day, Hells Canyon. "In this connection I am particularly dis­ And on the upper Snake: Palisades, Cas­ turbed by the fact that the hardest hit are Thursday, January 10, 1957 cade, Garden Valley, Anderson Ranch, Arrow Rock, and Lucky Peak. the publishers of small dailies and weeklies Mr. HORAN. Mr. Speaker, under as well as the newspapers of civic groups, Since 1948 we have effected only 5 million labor unions, religious organizations, and co­ consent granted me to extend my own acre-feet of effective storage-sufficient to operative movements--to mention a few of remarks in the CONGRESSIONAL RECORD, reduce the 1894 flood from 1,230,000 to the chief victims, who are· sometimes forced I am pleased to include a speech which 1,100,000 acre-feet. We still· need at least to pay exorbitant prices for this vital com­ I delivered November 13 in Spokane, 16 million acre-feet of stored water. modity on the gray or black market. Wash., on the subject of Upstream Stor­ It seems to me that we are at a point, now, "Moreover, the past two decades have wit­ age to the region 9 meeting of the Na­ in the overall developemnt of the Columbia nessed the disappearance of hundreds of tional Rural .Electric Cooperative Asso­ when we must make the storage, as stored daily newspapers in the United States water, the first and primary consideration in through merger, consolidation or failure. ciation: any part of that development, and the far­ The danger is real that the increased price EXCERPT FROM REMARKS BY HON. WALT ther we go up the system toward the Great of newsprint may accelerate this trend, par­ HORAN, OF WASHINGTON Divide, the more important that fact should ticularly by driving small papers out of busi­ I was born on the banks of the Wenatchee be. Aside from the problems of fish, which ness. River, a very short mile from its confluence problem we all want fully met, storing water "The time ls ripe for the Antitrust Divi­ with the Columbia. As a boy I used to is now, more than ever, the very crux of our sion of the Department of Justice to take a search for arrowheads along that great river striving for more power, more flood control, 'new look' at the newsprint problem which and watch the stern-wheelers churn up­ better navigation, better reservoir level con­ bas been under investigation in every ses­ stream from Wenatchee to Riverside, in high trol, adequate water for irrigation and domes• sion of Congress since 1943. The story of water and sail downstream from Pateros to tic uses. this industry has already been fully devel­ Wenatchee in.low water. Even then we used In our rush for Installed generators, we oped; the pertinent facts are spread upon to talk of the high water of 1894-which should not make an inadequate use of a dam the congressional records for all to see. came "clear up to Jones' do01·knob." The site that might yield even more benefits if "Admittedly, the tactical obstacles that Jones family lived in a house near the a proper evaluation of the storage potential would face the antitrust enforcement officers Columbia. were considered first and of first importance. of the Government cannot be minimized, Floodwise we have had some recent ex­ My own position on the very controversial but neither can the good that would result periences that have come close to "Jones' high dam at Hells Canyon was persuaded by from successful legal action in this long­ doorknob"-that have caused death and de­ this fact of greater storage-with greater neglected area. struction of major importance. The terrible benefits, therefore, at a dozen sites down­ "Painstaking examination of key witnesses flood of 1948 and the flood last summer have stream. by our Antitrust Subcommittee brought out focused our attention anew on flood control The very naive lady who asked: "What do these highlights in the newsprint picture: and have accented our observations and our you do with the water after you get the elec­ For at least 15 years newsprint has risen efforts on those developments that will help tricity out of it?"-brought forth the well­ steadily in cost and has been generally us to avoid the devastations of extreme high known fact that you never get the electricity scarce, with requirements of American pub­ water. out of water as long as it is falling. The same lishers mounting each year to a new high. My assignment today is very fortunate. bucketful, stored, if possible, at Glacier View, The booming demand coupled with a tight­ The things ahead of us in power development could have its electricity removed a score of ness of supply has inflated the price to $134 are the same things we need to do for flood times before it joined the Pacific. a ton, in terms of the current increase, a fig­ control. In planning to place the emphasis on stor­ ure that is more than double the price at the It is my opinion that all of us should be age, as stored water, we are beginning to end of World War II. thinking together, planning together, and place new emphasis on the potentials of the "Nearly 80 percent of the newsprint used acting together in the development of up­ important but lesser tributaries. In many in this country now comes from Canada, stream storage. It is my intention to pre­ cases these have been made feasible by other where the relative handful of producers en­ pare a bill to give the Army engineers and developments, as in the case of the Omak­ joy low-cost facilities, to say nothing of other Interstate agencies a clear mandate Goose Lake possibilities which I had checked duty-free entry for their product into the and a full congressional authorization to first in 1946. Possible combinations with United States, and the additional advantage store water as stored water. At first glance Chief Joseph dam and power now make this that accrues from the exchange rate between this might seem superfluous since upstream a project worthy of full study. Another pos­ the two countries. Efforts to open up and developments with power, reclamation, do­ sibility in my district is "Wenatchee-Hydro" develop additional production sources in mestic water, navigation, flood control, recre­ which would store water in the Lake Wenat­ this country, which our Antitrust Subcom­ ation, and wildlife all may, and usually do, chee area and, I believe, sometimes referred to mittee and other congressional committees add some storage water to our Columbia as the "Chiwawa." have sought to promote in cooperation with River systeni. But· storage, up to now, has This discussion must be brief. Let us sum Department of Commerce experts, have a been merely incidental. It has not been the up by saying that as long as we have moun­ long way to go. initial and, therefore, the prior consideration. tain ranges, and canyons with water flowing 1957 CONGRESSIONAL RECORD - HOUSE 451 down them, we will bave the responsibility have urgently recommended such action It should be obvious to you, as it is to of harnessing that water for progress and to the Secretary of Agriculture in a letter .me and the producers of eggs in my district, against the damage· of floods. Those moun­ sent him today. I am including that that Minnesota farmers are in a critical mar­ tains and those canyons also give us the )ret condition insofar as eggs are concerned. God-given opportunity to make the most of letter in my remarks in the hope that When you add this to the over-all depressed our storage potential with a minimum of cost. other Members will join me in my efforts ·market conditions in our area you can see We do not lack the vision either as the to bolster this market. At least, my col­ the very real hardship our people are suffer­ interest here attests. leagues from the consumer districts will ing because of the present egg market. We must place special emphasis on sites see a concrete example of what we are up I, therefore, urgently recommend that the with special circumstances surrounding against in the agriculture producing Department reenter the egg market without them, such as those involving Canada at areas of this Nation: delay with an egg-purchase program of suf­ Libby and the ultimate at Mica and Arrow ficient scope to assure raising of the market Lakes. CONGRESS OF THE UNITED STATES, to a realistic level. I further request that Meanwhile, we are making new starts for HOUSE OF REPRESENTATIVES, other interested Departments and agencies immediate promise to our power needs, and Washington, D. C., January 10, 1957. in a position to do so be urged to expand some multiple benefits. Preparations and Hon. EZRA TAFT BENSON, their purchases of eggs to bolster the market. actual work is underway on the three low Secretary, United States Department Advice as to your position on this will be dams on the Snake, at Pleasant Valley and of Agriculture, Washington, D. c. appreciated at your earliest opportunity, as Mountain Sheep, Noxon Rapids, Wells, Rocky DEAR SECRETARY BENSON: A press release I do not believe that egg producers in my Reach, and Priest Rapids. Ice Harbor is by your Department dated December 31, district and in that general area should be starting, the Dalles near completion and 1956, for release January 6, indicated that permitted to suffer this condition any longer there are others. the egg-purchase program was suspended in than is absolutely necessary. But the need is for the much broader early December. With best personal wishes, I remain, view-stored water, during the spring runoff According to the Crop Reporting Board Sincerely, that can be regulated to supply the benefits statement on Agricultural Prices, December H. CARL ANDERSEN. of maximum flow the year around. The 1956, the average price received by farmers promise of escape from interruptible power, for eggs was 37.1 cents on December 15, the elimination of floods and their damage, 1956. The average price was 47.1 cents on the realization, at least, of the full value of December 15, 1955. The general depression this mighty river asset--these are within our in the egg market is of serious concern to Address by Hon. John W. McCormack grasp. me, but of even greater concern is the dis­ Before Temple B'Nai Moshe The key, as I have said, is storage. Storage advantage marketwise to the egg producers first, and the others will be added unto it. in my area. I have before me a transactions slip dated January 5, 1957, showing that at EXTENSION OF REMARKS Edgerton, Minn., a farmer on that date was OF paid 24 cents per dozen for grade A Large eggs; 21 cents for B Medium; 21 cents for HON. -JOHN W. McCORMACK United States Department of Agriculture B grade; and 16 cents for C grade. I am OF MASSACHUSETTS Should Reinstate Egg Buying Program reliably informed that prices are even lower at other points in Minnesota. The effective IN THE HOUSE OF REPRF.sENTATIVES parity price for all eggs was 46.8 cents per EXTENSION OF REMARKS dozen on December 15, 1956. Thursday, January 10, 1957 OF The relative market position of Minnesota Mr. McCORMACK. Mr. Speaker, un­ producers of agricultural commodities has der the leave to extend my remarks in HON. H. CARL ANDERSEN disturbed me in recent years-. As you know, the RECORD, I include the following ad­ OF MINNESOTA my Subcommittee on Appropriations for Agriculture has repeatedly asked for inten­ dress made by me before the members of IN THE HOUSE OF REPRESENTATIVES sified study of marketing margins and other the Brotherhood Temple B'Nai Moshe, in Thursday, January 10, 1957 differentials between the producers and the Boston, Mass., on November 25, 1956: consumers. In addition, about a year ago Mr. H. CARL ANDERSEN. Mr. The period in which we are living, cover­ I asked Dr. 0. V. Wells, Administrator of ing the past 25 years, is one of the most try­ Speaker, the bottom has ~ll but fallen the Agricultural Marketing Service, to make ing and challenging in the known history of out of the egg market in the Midwest. some special studies relative to the market­ man. It is the forces of dictatorship in its It was bad enough in Baltimore when ing position in our general area. most vicious form determined to dominate farmers yesterday received 34 to 36 cents Late last Spring, Dr. Wells furnished me not only the body, but the will and the spirit for their top eggs, but in my district the some preliminary reports in accordance with of man; and to force that will and spirit to top price was no more than 24 cents. It my request. His study on eggs, for example, submit their belief and faith in God and His showed that in Minnesota our differential law, or to be remolded, to the image and like­ takes the same capital investment, the had averaged 6.7 cents below the national same amount of feed, and just as much ness of atheistic communism. average price on eggs from 1950-54, when This trying and challenging period is one farm family labor to produce a dozen the United States average price was 42 cents. that tests our faith, our courage and our eggs in the Seventh District of Minnesota In 1955, when the United States average price strength. as it does in Maryland, and I am sure the was 38.9 cents, the Minnesota differential We hear and live again the clarion call of Maryland farmers are not at all happy dropped to -6.3 cents. However, there is men and women who want freedom. "Where with their egg market. evidence at this time that the differential is law ceases, tyranny starts," or as as Patrick Some farm enterprises produce only even greater-somewhere in the neighbor­ Henry said, "Give me liberty or give me poultry and eggs. They are especially pood of 15 cents. death." There are many Patrick Henry's in Looking at it another way, the AMS re­ the world of today. In recent months, Po­ hard hit by this depressed market condi­ port entitled "Marketing Margins for Poul­ land, East Prussia, Hungary, Israel, and other tion. Other farm families produce eggs try and Eggs" dated January 1956, shows places give powerful evidence to this fact. for current cash income on a year-round that the farmer's share of the retail egg price The courage of those who have fought and basis and they, too, are suffering. ranged from 68 percent in 1952 to 73 per­ died for liberty, and others who in the fu­ When you compare Washington, D. C., cent in 1953. In 1955, the preliminary esti­ ture will be martyrs on the altar of liberty­ egg prices around 69 cents for top eggs mate was 69 percent. Last week, top eggs shows conclusively that the desire for liber­ last week with the price of no more than retailed at 69 cents per dozen in Washington ty is not manmade but come to mankind 24 cents paid to my Minnesota neighbors Safeway stores. Applying the farmer's lower from God himself through his natural law. share of 68 percent would mean that pro­ And it shows that dictators may suppress and constituents, you can see the gross ducers should have received about 47.61 cents temporarily but can never destroy that God­ inequity of this market condition. There per dozen. Subtracting from that the usual given desire for liberty. And in the world may be some inflation when the con­ Minnesota differential of about 6.7 cents of today, this is an important fact to re­ sumer goes to market, but there is noth­ should mean a price in Minnesota of about member. ing but deflation when the farmer takes 41 cents a dozen for top-grade eggs, instead We saw under Hitler and nazism, the ille­ his eggs to his market for sale. of the present top price of 24 cents. gitimate offspring of· communism-the fail­ I deeply regret that the United States I note from the above-mentioned press ure to dominate body and mind. The world Department of Agriculture suspended its release that from September 25 through De­ underwent great pain.and suffering, but Hit­ cember 6 last year your Department paid an ler and nazism could not destroy the will egg-purchase program early last month. average of· 37.81 cents for eggs. This does of men and women to be free. But to pre­ At this season, egg prices should be up-­ not appear to be an unrealistic figure under vent Hitler from obtaining his evil designs, not down-and seasonal trends in the present market conditions, assuming that we had to have great thinking and coura· next few months will surely be down un­ prices received by farmers maintained a geous leadership-leadership that made and less checked by appropriate action. I p"roper rela~ionship. carried out policies that led to success. 452 CONGRESSIONAL RECORD - HOUSE January 10 And, in the world of today, we need here The two countries most prominent in the recognize the present Soviet puppet regime and abroad the same type of leadership. news of today are Israel and Hungary. The in Hungary. And this is particularly applicable to our problems confronting the people of both of The United Nations has acted, whether own country, the leader of the free world and these countries are basically the same-their wisely or not, in the Middle East by sending of the forces of decency. desire for liberty and independence. a United Nations force into the Suez Canal For Chamberlain showed that the policy In the case of Israel, that little country area. of appeasement--or peace at any price-is is confronted with the problem and duty of But nothing ha::i. been done with refer­ the road to war. preserving and retaining liberty and inde- ence to observers or a United Nations force We know now from the records of Nazi pendence. In the case of Hungary, of re- in Hungary. Germany that firmness on the part of Great gaining liberty and independence. But the If the United Nations cannot act, or fails Britain and France and particularly Great basic objective of both countries is liberty or fears to act where the Communists are Britain, prior to Munich and the invasion of and independence. the aggressors, then its future existence is Poland, might have averted World War II. In Hungary, we witness Communist Russia imperiled. And firmness today by those in position of sending in its forces of killers to suppress What we need is deeds, not words. leadership might avert another world con­ the fight for liberty. The reason they moved In Israel we witness the determination flict. in to Hungary is because the uprising was of Nasser-backed by the Soviet Union-to For the past year and a half, we have been against any or all forms of Communistic destroy that brave little country. That is living in a dream world-a world of hope. government. We witness the Soviet Union a well-known fact. It is also a well-known The realities of current world history and establishing the Kadar regime, which is not fact that Soviet arms are going into Algeria events are now catching up with us, and our a legitimate government. b"." way of EgY.pt, and that the whole unrest people are having a rude awakening. We have heard the pleas of the fighting in the Middle East and Mediterranean area During our blissful period of complacency and dying Hungarians falling on ears of in- has its origin in the Kremli.n. few persons gave thought to the importance action. Action that the United States and It is a historical fact that for over 200 to our own national interest of countries and the United Nations could have taken and years Russia, under the Czars and the Com­ peoples thousands of miles away from us. failed to take has played into the Kremlin's munists, have tried to penetrate the Middle Indonesia, Thailand, Burma, Israel, Egypt, hands in Hungary and elsewhere. East to gain domination in that important the Middle East, and other nations were For we know that there are m111ions of area. In thiz area in the past 2 years the names of countries, or an area of the world persons behind the Iron Curtain who hate Soviet Union has been able to accomplish about which we read when we studied geog­ all forms of Communistic government; and what Russia could not accomplish for over raphy in our school days or read about in the that they are watching events in Hungary. 200 years. newspapers of today. They are away off, and Like the people of Hungary, they want their We know of the Soviet sale, or giving, of what do they mean to us? own free government. When they see in- arms to Egypt, which brought about a mili­ But our people, now-the hard way-are action in the case of Hungary, it deters their tary in balance in that area harmful to the commencing to realize that in the hands of, determination and action for any similar existence of Israel. Farseeing and coura- or under the control or domination of the uprising. geous leadership on our part would have off- Soviet Union, they .do mean a great deal to Now, what can we do? set that imbalance by the sale of arms to the United States; and, in the hands of a In addition to the sending of medicines Israel for defensive purposes. If that had hostile government, they would be adverse to and foods, which has been done to some ex- b;en done, Nasser would probably not have our best interest. To the contrary, in the tent, the United States could announce its carried out his raids on Israel. Nasser might hands of a government friendly to us, they refusal to recognize the soviet puppet gov- then have realized that the 8-year offer of are of great importance, particularly in case ernment of Hungary, at least until all Soviet Israel to negotiate peace terms should be of war, to our country and its national troops are withdrawn, and these Hungarians accepted. In any event, such action would interest. forcibly deported to Siberia are returned to have shown firm leadership on our part that There has been too much loose thinking in their homes. might well have stayed the action of Nasser the minds of many Americans of the impor­ The United Nations has finally adopted in the seizing of the Suez Canal. tance to use of countries thousands of miles over Soviet opposition a resolution to send For men like Nasser and the Communist away from our shores. And, among the main United Nations observers to Hungary. The leaders thrive on uncertain, vacillating and reasons for this is the feeling of false security, present nonlegitimate regime in Hungary weak leadership. To them, that is weak­ resulting in complacency that responsible has announced its refusal to permit their ness, which gives them courage to take ac­ leadership in our country has created during entry. tion that might bring about more serious the past year and a half--coupled with the An announcement that the United Nations results. withholding of information from our people observers were going into Hungary could be The important question, coming down to that should have been made public. made and the attempt made. Or, better conditions as they exist at the present time, For example, slowly but surely, there ls still, if the United Nations observers were to is what course of action should be taken now. creeping into the minds of our people the fiy to the Budapest airport in a United Na- It is very evident that the restoration importance of Indonesia in connection with tions marked plane, the Soviet Union could of peace in the Middle East will not · be the defense of our country. For, Indonesia only do 1 of 2 things-admit them and brought about by the mere withdrawal of in the hands of a hostile government in time thus weaken their position, or arrest and the British-French forces from the Suez of war would outflank our entire far eastern expel them, which would also weaken their and the withdrawal of the forces of Israel defenses and compel us to draw back in the position. The burden then would be upon from the area occupied by them-unless a Pacific pver 2,000 miles to our continental the Soviet Union and the present nonlegiti- new satisfactory international agreement is defenses of Hawaii and Alaska. mate regime in Hungary to forcibly deny reached in relation to the Suez and peace Our people are commencing to realize the their admission. This action would show negotiated and a peace treaty signed between importance of the Middle East--of the Suez to the world what the Soviets are, and open Israel and the Arab countries. Such action Canal-and of Israel in terms of the Ameri­ the way to genuine diplomatic and economic alone will strengthen Nasser's hand, make can national interest. They are commencing action. This action would also convey a him more formidable, and consolidate the to realize that the Soviet Union in control of message of action and real hope to the pa- position and power of Communist Russia the Middle East would be a disastrous blow triots in Hungary. It would be a stimulat- in this vital area and increase the danger to the free world, and dangerous to our own ing action to millions of others behind the of another world war. best interest. Iron Curtain who are longing for freedom I think it can be safely said that a truce We have seen the myth of peaceful co­ from any kind of Communist domination. that avoids fighting and settles nothing is existence exposed by the ruthless actions of The forcible denial o:f the entry of the not peace. the Soviet Union in Hungary. United Nations observers into Hungary To the dictator, particularly the Commu­ We see the actual threat of another world would arouse world public opinion that the nist type, this is a sign of weakness, leading war by the actions of the Kremlin and Nasser Soviet Union and the present Hungarian him to greater boldness, greater danger, and, in the Middle East. regime could not withstand. ultimately, war. And, in our own country, we see leadership We will remember that not so long ago As we read the newspapers of the past few that with firmness could probably have they had to bend to world public opinion days it is apparent that Nasser is seeking averted these conditions, just the same as where Red Cross trucks with food and medi- terms which, if agreed to, will be a great Chamberlain could probably have averted cines were denied admission. As a result of victory for him and the Soviet Union. World War II if he had followed the policy that world public opinion was aroused and If the United Nations agrees to his terms, of firmness . . . , within 24 hours they permitted them to and particularly if the United Nations forces We see our leadership, in desperation, act­ enter Hungary to bring relief to the suffering withdraw from the Suez Canal after the ing with a lack of policy and in a confused people: , withdrawal of the British-French . fol'ces, st.ate of mind, which may contribute to And, I might say, that over 2 weeks. ago that will be capitulation on the part of the greater danger. I suggested to a high official. of our State free world. It is essential that we immediately get back Department that such action· be taken, as If, in addition, United Nations forces are to sound thinkfog, to firmness and consist­ well as sending over the United· Nations ob~ used to police Israel for the benefit of Egypt, ency in our foregn policy, and in regaining servers and compelling the Communists to · the capitulation will be indescribably harm­ the confidence of our friends throughout the refuse . their admission. I also suggested ful to not only the free world but to our own world. · that our country announce that it would not country. - 1957 CONGRESSIONAL RECORD - HOUSE 453 Even those who oppose the recent action o! There were the same type of persons · 1n American people. As an American, I Great Britain, France, and Israel should real­ the 1930's when Hitler and Mussolini engaged am proud of our country's history in de­ ize that this should not be done. They in aggression. There were those who then fending human rights in the past in every should realize that Nasser is a constant men­ said, "There is nothing that can be done." ace to peace. They should realize that the But, we found out that this was nothing part of the globe, and most recently in Kremlin is still bent on world revolution and but the policy of appeasement. And, as I the case of the Hungarian people whose world domination. They should realize that have said before, appeasement for democ­ human rights and liberties have been Communist domination in the Middle East racies leads to war. For Chamberlain showed trampled upon by the ruthless tyrants will give the Soviet Union a decided ad­ this. of the Kremlin. vantage that will be most harmful to our What the United States should do is get I should like to see our country take national interest and the national interests back to the basic policy of firmness in for­ several steps in dealing with this unfor .. of the free nations of the world. They eign affairs. For the very fate of the free tunate situation: should realize that the United Nations forces world might 'be involved if we do not devise should remain at the Suez Canal until an­ and follow correct policies. First, that President Eisenhower make other fair international agreement has been · It is the inactivity of the United States­ a personal appeal to the head of the made with reference to the Suez and with its attitude of an aggrieved but thoroughly Egyptian Government to abide by the the vessels of Israel, or those . going to or .passive spectator, which creates doubts in the Charter of the United Nations, which .from Israel, having full rights. And that minds of other free nations, and which gives guarantees human rights and to request the United Nations forces should remain un­ the Kremlin and men like Nasser and Kadar that these rights be applied to the Jews til Nasser and the heads of the other Arab courage to proceed further. of Egypt. countries sit around the peace table with To stop further deterioration of the nations Israel and negotiate and make a peace treaty. of the free world, sound policies must be Second, that the United States should The sending of United Nations forces is devised, with firmness of leadership, as well ask the United Nations to undertake an to meet the present emergency, and is tem­ as consistency of leadership. investigation of the violations of human porary action. It will be in vain unless the This is a matter of paramount immediate rights in Egypt. chronic condition is healed, and that can importance. Third, that United Nations observers only be done by a peace treaty entered into And in the position of leadership o·ur coun­ report their findings to the U. N. Gen­ good faith. And the responsibility for the try occupies, with the influence and power eral Assembly at an early date so that chronic condition-the armistice of the past we possess, that task falls primarily upon the necessary steps may be taken to 8 years, the failure to negotiate peace-rests our shoulders. halt the terror against the Jews in upon Nasser. For it is well known that he We should not-we cannot afford to fail. has constantly refused to even try and make Egypt. peace terms. It is well known that he will Mr. Speaker, I feel that if the United not do so. Israel for 8 years, and today, is States would raise its voice and lend its willing to negotiate peace terms. vigor to see that justice and humane We read in the papers of the return of Persecution oi Egyptian Jews treatment are afforded to these people Secretary General Hammarskjold of the much could be accomplished in that di­ United Nations from his conferences with EXTENSION OF REMARKS rection. We cannot sit idly by while Nasser. He has made his reports to the Gen­ eral Assembly. While the same are pre­ OF Egypt becomes a slaughterhouse for the liminary and incomplete, it does show what L. innocent. We must respond to the call Nasser's demands are. It also shows Ham­ HON.- VICTOR ANFUSO of the oppressed everywhere. That has marskjold's thinking. His reports, if ac­ O_F NEW YORK been our traditional way in the past. cepted, would leave the presence, deploy­ IN THE HOUSE OF REPRESENTATIVES That should be our response today. ment, and tasks of the United Nations forces Thursday, January 10, 1957 ~ subject to the grace and consent of Nasser. If that is agreed to, there will only be a tem­ · Mr. ANFUSO. Mr. Speaker, I am very Banking Concentration porary truce. If that is agreed to, it will much perturbed over the reports con­ constitute a great victory for Nasser and cerning the harsh treatment of Jews in the Soviet Union. If that is agreed to, it will Egypt. Already several thousand Jewish EXTENSION OF REMARKS be a capitulation on our part that could lead OF to disastrous results. · refugees from Egypt have reached Euro­ The withd1·awal of the United Nations pean ports with tales of horror of the in­ -HON. EMANUEL CELLER humanities being perpetrated by the forces from the Suez should be dependent OF NEW YORK upon (1) another fair international agree­ Egyptian authorities against a peaceful ment for the use of the Suez being negoti­ community. It appears that a veritable IN THE HOUSE OF REPRESENTATIVES ated; and (2) the making of peace between reign of terror against Jews is being pur­ Thursday, January 10, 1957 the Arab nations and Israel. sued on a scale which is reminiscent of Mr. CELLER. Mr. Speaker, under The position of Israel is only fair that the Hitler.methods in Nazi Germany. guaranties should be exacted from Nasser leave to extend my remarks in the REC­ against further Egyptian suicide squad raids Reports out of Egypt indicate that sev­ ORD, I include the following statement by on Israel and its people. eral thousand Jews have been incarcer­ me before the Joint Legislative Commit­ To permit Egypt to dominate politically the ated, about 4,000 Jews have been able to tee to revise the banking law of the State Suez Canal would be not only unwise, but leave or were deported from Egypt after of New York, at the Association of the dangerous. all their belongings and property were Bar of the City of New York, 42 West We must not overlook the fact that- confiscated, and the remainder of the 44th Street, New York City, January 7, 1. Egypt declared war on Israel. 50,000 Jewish souls in that country are 1957: . 2. It is Nasser who refuses to talk and nego­ said to be under house arrest. Jewish­ BANKING CONCENTRATION tiate peace terms. owned businesses have been taken over by The hearings which this very distinguished 3. Nasser has repeatedly stated his avowed the authorities and bank accounts were int ention to destroy Israel. committee begins today on the subject of frozen. possible bank holding legislation and the 4. Nasser is giving aid to the Algerian This brutal and inhumane treatment effects of the Bank Holding Company Act of rebels with Communist arms coming from the of the Jews by the Nasser regime in Egypt 1956 are vitally important and timely in­ Soviet Union. deed. They are being held at a time when 5. Nasser is determined to drive the West­ is a challenge to the moral conscience of the world. It is clear that Egypt's ruling the entire banking structure of this State is ern Powers out of the Middle East. threatened by a holding company proposal 6. It was Nasser who purchased or obtained clique is determined to wipe out an an­ which is not only competitively abhorrent arms from the Soviet Union to use to destroy cient Jewish community by sheer acts of in itself, but even more important, could Israel. terror and violence, just as the Nazis did start a chain reaction by giant financial in­ 7. It was Nasser who enabled the Soviet in Germany and other European coun:.. stitutions in this city that might ultimately Union to gain their strong foothold in the tries. These barbaric tactics of an evil wreck the entire banking structure of this Middle East. - _ dictator must surely arouse the indigna·­ State. 8. It is Nasser who is the man who seized tion of the civilized world, and most In considering the problem of bank hold­ the Suez Canal last July. ing companies, this committee is, I know, 9. It is Nasser who orders the suicide squad especially our own Government. . well aware that the banking system of the raids to be carried on against the people of The treatment of Egyptian Jews is a United States traditionally has relied for Israel. matter of concern to all freedom-loving its vitality on vigorous competition by a There are some in the world of today who people and to all those who are interested multitude of independent banks, locally or­ ask the question, "What can we do?" or, in preserving human rights. As such it is ganized, locally flna:nced, and locally man­ "There is nothing that· can be done." of deep interest and great concern to the aged. Unlike other countries such as Great 454 CONGRESSIONAL RECORD - HOUSE January 10 Britain and France, where a few giant instl• · In large part because of this merger activ­ and major purpose of drawing these lines tutions control nearly all the banking fa­ ity, New York City today has only 60 com­ was to protect independent banks in areas cilities, the American system is based on unit mercial banks whereas at the opening of the beyond New York City limits from encroach­ banking-that is, strong, growing commu­ century it had 127. Today the city's 4 largest ment by the giant banking institutions in nity banks which provide a wide range of banks control 61 percent of all deposits, this city. However, in the absence of effec­ financial services to the people in the area. whereas in 1900 the 4 largest had only 2~ per­ tive State or Federal bank holding company I think it is fair to say that our unit bank­ cent of the total deposits.2 legislation in the past, these geographic limi­ ing system has played a most important role To combat this trend toward increasing tations could be avoided by the simple ex­ in the economic development of this country. concentration of banking facilities, addi­ pedient of forming a holding company to The committee is also aware, I am sure, tional action is imperative both at the Fed­ acquire control of banks throughout the that there has been in recent years a dis­ eral and State level. At the Federal level, State without regard to district lines.5 To cernible trend toward concentration of the legislation is urgently required to plug a illustrate, the Marine Midland Corp., which Nation's banking business into fewer and loophole in the Celler-Kefauver Act of 1950 3 was organized in 1929 and is presently this larger hands. This trend presents a serious which amended section 7 of the Clayton Act State's leading holding company, felt itself danger to the independent banking system; and prohibits bank mergers accomplished by "compelled to carry out [its) plans by the permitted to continue unchecked, it could stock acquisition where the effect may be method of 'group' banking because the laws have the most dangerous consequences for substantially to lessen competition or tend of New York State and the National Banking the entire competitive economy which de­ to create a monopoly in any section of the Act both prohibit branch banking beyond pends for its lifeblood upon banking credit. country, but fails to cover bank mergers city limits." 11 Illustrating the extent of concentration in having the same anticompetitive effects ac­ Beyond that, failure of the Bank Holding the present-day banking system, consider complished by asset acquisition. Result is Company Act of 1956 to limit acquisition of that the 100 largest banks in the Nation now to hamper efforts of Federal enforcement banks by holding companies to the geo­ control over 46 percent of all the commercial agencies to stop bank mergers having poten­ graphic area of the State within which banks in the country and more than 48 per­ tially serious competitive implications. I am branches are authorized, permits continued cent of the Nation's commercial bank despos­ introducing a b111 tomorrow to plug this loop­ circumvention of State branch-banking laws. its. More than that, in each of a majority of hole and enable Federal enforcement agen­ This whole issue, long virtually dormant, the leading financial centers of this Nation, a cies to proceed under the Celler-Kefauver Act has come dramatically to life in New York handful of banks control a predominant against bank mergers regardless of how ac­ State now that the First National City Bank share of all the commercial bank assets of the complished. A similar bill which I intro­ has applied to the Federal Reserve Board for area. Thus, here in New York City, the finan­ duced during the last Congress passed the permission to form a bank holding company cial center of the Nation, the 4 largest banks House without dissent, but failed of final with the initial objective of acquiring con­ control over 60 percent of all commercial Senate action. Let me make it clear that I trol of the County Trust Company of White bank assets while the 2 largest alone control shall redouble my efforts in the immediate Plains, N. Y., the dominant commercial bank almost 42 percent of the city's banking assets. months ahead to obtain speedy enactment of in Westchester County. That entire trans­ Principally responsible in my judgment this vitally needed legislation. action is to take place subject to the pro­ for the present degree of concentration llas Action is equally necessary at the State visions of the recently passed Bank Holding been a spate of mergers accomplished through Company Act of 1956 under which the Fed­ level to prevent, via the holding company acquisitions of banks by holding companies eral Reserve Board has final jurisdiction. device, circumvention of branch district and by other banks which are in many in­ Before discussing this proposal in greater stances themselves part of a holding company lines designed to safeguard against banking detail, I should like to review ·briefiy the sali­ system. From 1950 to the present date some monopoly in this State! Indeed the original ent provisions of the Bank Holding Company 1,008 banks~most of them growing, efficient, Act in order to place this matter in proper and profitable institutions-have disappeared In December 1954, the Chemical Bank & perspective. My plan is then to discuss (1) through merger activity. Merger activity has Trust Co., with assets of $2 billion, com­ the First National City Bank proposal; (2) been particularly acute here in New York bined with the Corn Exchange Bank & Trust State authority to adopt remedial bank hold­ City where in 1955 there occurred the three Co., which had assets of $821 million, to form ing-company legislation; and (3) recommen­ largest bank mergers in the history of the the Chemical Corn Exchange Bank, which dations for State action to prevent violation country. These involved the consolidation has total assets of about $3 billion. See of statutory branch district lines in order to of Chase National Bank with the Bank ·of . Corporate and Bank Mergers Interim Report curb undue holding-company expansion• Manhattan Co. and the Bronx County Trust of the Antintrust Subcommittee of the House BANK HOLDING COMPANY ACT OF 1956 Co.; acquisition by the National City Bank Committee on the Judiciary ( 84th Cong., 1st of New York of First National Bank of New sess.), pp. 28-30. Many leading holding companies in the York; . and acquisition by the Bankers Trust banking field were organized during the years 2 Id., p. 29. 1927-29 to bypass State statutory limita­ Co. of the Public National Bank & Trust 3 Public Law 899, 81st Cong., 2d sess. Company of New York.1 tions on, or prohibitions against, branch (1950}; 15 U.S. C., sec. 18. banking. These State limitations were made ~Section 105 of the New York banking law applicable to national banks under the Bank· 1 In March 1955, the Ch.ase National Bank provides, with two exceptions, that no bank with total assets of $5.7 billion merged with ing Acts of i927 and 1933 which authorize ·or trust company shall transact any of its the Comptroller of the Currency to approve the Bank of Manhattan Co. with assets of usual business of banking elsewhere than its $1.6 billion and the Bronx County Trust Co. branches for a national bank only within principal office. The exceptions are: State boundaries and subject to the restric­ with assets of $76 million. This merger pro­ (a) If the principal office is in a city with vided the new entity, the Chase Manhattan tions as to location imposed by State laws population in excess of 30,000, branches may dealing with State banks.1 Bank, with total assets of $7.4 billion or be opened in that city, irrespective of 21.7 percent of the total assets of all banks Moreover, establishment of holding com­ whether it is located entirely within 1 bank­ panies served as a useful mechanism for in New York City. The merger also jumped ing district, and Chase Manhattan to first place in New York bringing banking facilities under common City and second place in the Nation. (b} A bank or trust company may open control with a wide variety of businesses Also in March 1955 the National City Bank branches within any city or village within the totally unrelated to the banking field. In of New York, previously the second largest banking district within which its principal contrast State and Federal laws prohibited bank in the United States with assets of office is located, but not (except for the pur­ banks from engaging in nonbanking busi­ $5.7 billion, took over the First National pose of acquisition, by merger or otherwise, nesses. Bank of New York, which had total assets of the property and business of an existing Beginning in 1938 repeated efforts were of $713 million. The new combination, the bank) in competition with another bank, made to enact adequate legislation to safe­ First National City Bank, now ranks second trust company, or national banking associa· tion which already has a principal office there. guard against undue concentration of con­ in the area with present aggregate assets of trol of banking resulting from the activities $7.1 billion, or 19 percent of the total. · Section 3 of the banking law divides the Less than a month later the Bankers Trust State of New York into nine banking districts. Co. with assets of $2.7 billion acquired the Discussing the statute in its present form 6 From a practical standpoint a bank hold· Public National Bank· & Trust Co., of New in Hudson-Harlem Valley Title and Mort­ ing company is a corporation chartered under York, which controlled assets comprising gage Co: v. White (164 Misc. 47, 298 NYS the general incorporation laws of the State some $562 million. This was only the last · 652, rev'd on other grounds, 251 App. Div. 1, to acquire an interest in State or National of a series of acquisitions by Bankers Trust 296 NYS 424) the Supreme Court said that banks. Co. which has been taking over other banks "the territorial limitation upon the exercise 8 See hearings before House Committee on at a rapid rate for the last several years. of the business of a trust company imposed Banking and Currency on H. R. 2764 to pro­ Indeed, since 1950 ·Bankers Trust has ab­ by • • • the banking law seems to find its vide for the control and regulation of bank sorbed such substantial banking institutions reason in the general policy of the State in holding companies (84th· Cong., 1st sess.), as the Title Guarantee & ·Trust Co., Lawyers reference to the banking business and cor,.. p. 171 (hereinafter referred to as "House Trust Co., Flushing National Bank, the Com­ porations subject to the banking law, among hearings"). mercial National Bank & Trust Co., and the other things; 'to eliminate unsound and 7 Prior 6 1927 national banks were pre­ Bayside National Bank. · destructive competition.' " cluded from opening branch offices. 1957 CONGRESSIONAL RECORD - HOUSE 455 of bank holding companies.a· Necessity for company w except after prior approval by the would make the First New York Co. the such legislation was underscored by· inade­ Federal Reserve Board. It also prohibits Nation's largest bank holding company. quate holding company control under exist­ bank holding companies from acquiring ad­ · The First National City Bank is now the ing law. The Banking Act· of 1933 provided ditional bank stock or assets without prior second largest banking institution in this a degree of regulation by the Federal Reserve Board approval. Future interstate expan­ city. As previously noted, it was created in System limited to protecting the soundness sion is barred by a provision prohibiting a ·March 1955 as a result of the merger of the of the member banks in the group. Even bank holding company from- purchasing National City Bank and the First National this restricted supervision was applicable voting shares in any bank located in a State City Bank of New York, a transaction readily only if the holding company controlled a. other than the State where the holding approved by the Comptroller of the Cur­ Federal Reserve·member bank and wished to company maintains its principal office or rency, Mr. Ray M. Gidney, notwithstanding' vote the stock it owned in that bank. Con­ conducts its principal operations, unless the its anticompetitive implications. The First sequently Federal regulation, in effect, was transaction is expressly permitted by the National City Bank and the City Bank optional on the part of the bank holding statute laws of the State where the bank is Farmers Trust Co. have aggregate aEsets of company and could be avoided if the group located.10 $7.1 billion, comprising 19 percent of total decided not to vote its shares in the sub­ In considering an application for approval commercial banking assets in this city. First sidiary member banks. In all, 18 holding the Board is required to seek the views and National City Bank presently operates 74 companies subjected themselves to Federal recommendations of the Comptroller of the domestic branch offices in New York City and supervision.11 Currency or the State bank supervisor, de­ 65 ·foreign branches located in 22 foreign In these circumstances, holding company -pending on whether the bank involved is a countries. control of branches grew to extremely large National or State bank.17 It must also take The County Trust Co., of White Plains, proportions. For example, as of December into consideration a number of factol's, in­ ·N. Y., is by far the largest bank in Westches­ 31, 1954, in this State, 14 holding companies clud1ng the convenience, needs, and welfare ter County. It has total assets of approxi­ controlled banks having deposits of $7.2 of the communities in the area concerned mately $375 million comprising 48 percent of billion, amounting to 19.5 percent of all com­ and whether or not the effect of the acquisi­ all banking resources in Westchester· County. mercial bank deposits in the State.10 As of tion would be to expand the size or extent ·By way of comparison, its nearest competitor the end of 1954, in Arizona, 2 holding com­ of the holding-company system involved be­ has assets approximating $138 million repre­ panies controlled over 80 percent of all com­ yond limits consistent with the principles of senting 18.6 percent of the commercial bank mercial bank deposits; in Minnesota 2 com­ sound banking, the public interest, and the assets of the county. The County Trust Co. panies held 45 percent of the State's com­ preservation of competition in the field of has 38 branch offices or 46.5 percent in num­ mercial deposits; in Montana the same 2 banking. More important, since the act, ber of all commercial bank offices in West­ holding companies controlled over 44 percent under the express provision of section 11, chester County. of the commercial deposits; in North Dakota does not supersede the antitrust laws to any Parenthetically I note that last year the 29 percent, and in South Dakota 37 percent extent, the bank-merger provisions of the County Trust Co. sought to acquire through of the commercial bank deposits. One hold­ Celler-Kefauver Act are fully applicable. merger the Ramapo Trust Co., of Rockland ing company controlled 42 percent of Ore­ This means that the Federal Reserve Board County. That proposal was blocked by Mr. gon's bank deposits and the same company has a mandate to forbid any stock acquisi­ George A. Mooney, superintendent of banks in Nevada held 78 percent of the commercial tion by bank holding company where the of New York State as contrary to competitive bank deposits.u Reflecting concern with effect may be substantially to lessen com­ principles. I would add that in this as in holding company control of banking facili­ petition or tend to create a monopoly in any other instances Mr. Mooney has demon­ ties was the Federal Deposit Insurance Corpo­ section of the country. str.ated his courage and dedication to the ration 1943 report, which pointed out that: Another important provision of the Bank public interest. We here in New York should "Holding companies not only tend to become Holding Act requires existing bank holding applaud his exceptionally devoted service. monopolistic but increase the problem of companies to divest themselves of nonrelated Returning to the First National City Bank supervision. The ease with which assets may banking businesses and denies groups the proposal, it contemplates the chartering of be transferred from one affiliated corporate right to acquire nonrelated business hence­ three phantom national banks into which unit to another and the possibility of the forth. Special tax-relief provisions are in­ would be consolidated the First National City manipulation of the accounts of these enter­ corporated to obviate tax hardships result­ Bank, the City Bank Farmers Trust Co. and prises make adequate examination of affi­ ing from nonbank asset divestiture. the County Trust Co., the latter two, as pre­ liated banks and the appraisal of their viously indicated, being State-chartered in­ condition and capital position extremely dif­ THE FIRST NATIONAL CITY BANK PROPOSAL stitutions. Whether charter for these new ficult.12 These considerations led the FDIC Under the act, Federal Reserve Board ap· national banks is sought before, after, or to recommend enactment of legislation by proval is sought for the First New York Co., simultaneous-with a Board decision is not the Congress prohibiting the future creation a corporation organized under the laws of clear. It is clear, however, that proper pro­ of holding companies and requiring the liqui­ Delaware, to become a bank holding com­ cedure would require chartering of these dation of existing holding companies.1a pany which would have 100 percent stock new national banks by the Comptroller of the Against this background the Bank Holding control of the First National City Bank of Currency before the proposal was enter• Company Act was adopted to maintain com­ tained by the Federal Reserve Board. What­ petition among banks and minimize the New York, its affiliate, the City Bank Farmers Trust Co. (a New York State-chartered bank ever the reason for the extraordinary pro­ dangers inherent in concentration of eco­ cedure in this matter, one result was that nomic power through centralized banking owned by the same shareholders) , and the the Board apparently felt itself obliged as a. control. In outline, the act prohibits any County Trust Company of White Plains, matter of statutory requirement to consult company u from becoming a bank holding N. Y., also a State bank. Board approval with the Comptroller of the currency rather than the State superintendent even though 8 The President in a special message to the 15 A bank holding company is defined as a national bank charters had not yet been is­ Congress in 1938 recommended legislation to company controlling 25 percent or more of sued. I can hardly think of a more obvious control the operation of bank holding com­ the voting stock of 2 or more banks. About subterfuge or one better calculated to un­ panies; prevent them from acquiring control 47 bank holding companies with deposits of dermine the dual banking system. of further banks; and prevent banks con­ $14.2 billion are covered by the act as con­ Perhaps the parties to this plan had con­ .trolled by holding companies from establish­ trasted with an estimated 163 bank holding fidence that the Comptroller, Mr. Gidney, ing further branches. B111s to regulate bank groups having 25 percent or more control would not deviate from his normal practice holding companies were introduced in 1938, of 1 or more banks. of rubberstamping any monopolistic proposal 1941, 1945, 1947, 1949, and 1950. 1a No State has such permissive legislation. and would recommend Board approval as a. 11 As of December 31, 1954, these 18 holding 17 The bill as passed by the House provided matter of routine. If this were in the con­ companies operating from 22 States, con­ that disapproval by the Comptroller of the templation of the parties they certainly were trolled 832 banking offices (including Currency or State bank supervisor, as the accurate prophets. I can tell this committee branches) with total deposits of $10.8 billion. case might be, was final.- See H. R. 2674 (84th that on December 13, 1956, Mr. Gidney with­ 10 See hearings before subcommittee of Sen­ Cong., 1st sess.), sec. 5 (b). The Senate out delay a.nd without investigation of the ate Committee on Bankin and currency on S. deleted this provision on the basis of Federal economic aspects or social consequences in­ 880, S. 2350, and H. R. 6227 to provide for Reserve Board contention that it would have herent in this proposal, but with utter dis­ the control and regulation of bank holding the effect of diffusing responsibility for ad­ regard of the public interest, cheerfully companies and require divestment of their ministration of the legisjation; involve du­ advised the Board of his unhesitating ap­ nonbanking interests (84th Cong., 1st sess.), plication of effort; and give rise to adminis­ proval of the transaction. That came as no p. 59 (hereinafter referred to as "Senate trative difficulties. Another key provision of surprise. Mr. Gidney in his concept of the hearings.") the House-passed bill, deleted by the Senate, public interest identifies the functions of - 11 See House hearings, p. 167. prohibited holding company expansion of his office with the private interests of the 1 2 Senate hearings, p. 360. banks within a State except in accordance banks he is supposed to regulate. It is this 13 Ibid. with the branch bank laws of that State. same Mr. Gidney who repeatedly assured our 1 ~ Under the act a company is defined as a Enactment of the latter provision would, of Antitrust Subcommittee that he wou1d not corporation, business, trust association or .course, have forestalled present attempts to approve any bank transaction that was in­ similar organization. Only a company can pierce branch lines through the holding com. consistent with antitru.st objectives. Yet in become a bank holding company. pany device. the 4 yea.rs he has occupied this important 456 CONGRESSIONAL RECORD-· HOUSE January 10 post in G<>vernment he has blithely approved companies as a class than (1) this .bill em­ .percent or more of the voting stoGk of each over 350 mergers, without once turning down powers the Federal authorities to be or (2) of two or more banks, except within geo­ a merger application on the ground it would such Federal authorities actually are in their graphic limitations that would apply to the injure competition. Even one or two such administration of the provisions of this bill. establishment of branches of banks under refusals would have given Mr. Gidney some In the opinion of the committee this pro".' the banking laws of this State.2:1 right to argue that he actually was consid­ vision adequately safeguards State rights Such legislation would mean that the ering competitive aspects. No such refusal as to bank holding companies." 18 holding company device like the one pro­ has ever emerged from his office. Beyond that, Senator ROBERTSON, sponsor posed by First National City Bank no longer The inescapable conclusion is that if the of the legislation in the Senate and chairman could be used in this State to circum­ present proposal should be approved by the of the Banking and Currency Subcommittee vent statutory district lines. It would stop Federal Reserve Board, the First National which considered the measure, pointed out in its tracks the current attempt by the City Bank of New York would have not only in Senate debate that "each State may • • • same management which is restricted in its a powerful position in New York City but a enact legislation to regulate bank holding operation under a bank charter, to acquire dominant position in Westchester County. companies." 10 As an example of the type of through a holding company a unit bank, There is little doubt that other giant bank­ legislation States were empowered to enact, operate it in the same manner a branch ing institutions in New York City would be .Senator ROBERTSON inserted in the CONGRES­ would be operated and flout the expressed forced in self-defense to utilize the same SIONAL RECORD the text of a bank holding bill will of the legislative body of this State subterfuge and swallow up other banks in recently passed by the Georgia Legislature,20 regarding the establishment of branches.2• this State. Experience in the bank merger preventing any bank holding company incor­ .And it would put an end to possible evasion field proves that one acquisition inexorably porated under State law or doing business of State laws designed to forestall undue leads to another. The prospect is, therefore, in the State, from acquiring 15 percent or concentration of banking facilities in the that the First National City plan would more of the voting stock of each of 2 or hands of a few banking institutions. initiate a chain reaction until ultimately a more banks. Illinois enacted similar legisla­ Whether or not such legislation should handful of giant New York City banks, tion.21 apply to existing subsidiaries bank hold­ ·through the holding-company device, would RECOMMENDATIONS FOR STATE ACTION ing companies is a troublesome question be in control of nearly every sizable com­ indeed. On the one hand, it can be argued mercial bank in the State of New York. This These considerations make it evident that with some force that unless such coverage would mean that the day of independent this committee could recommend a number were applicable, the effect would be to freeze ·unit and regional banking would have passed of alternative measures to prevent holding the statewide status of systems such as the .and that money and credit in New York company circumvention of State's branch Marine Midland group while denying new State would be largely controlled by a few district lines. Most drastic, of course, would organizations the right to compete on a mammoth banking institutions. be complete prohibition against bank holding similar basis. On the other hand, there is I think it is fair to say that the effectua­ organizations or 15 percent stock limitation the equally cogent argument that exten­ tion of the First National City plan could similar to that adopted in Illinois. Either sion of legislation to existing bank holding mean the end of branch district lines in New alternative is, in my opinion, unnecessary subsidiaries would cause an unnecessary York State. It could mean basic alteration _at the present time. I do not believe that hardship not justified by the operation of of the present bank structure of New York bank holding company operations are bad' these companies. I would recommend State, completely without the approval of the per se. In a number of cases such companies against such extension unless this commit­ State legislature. In cases where holding have gone into areas where banking facilities tee determines that the operations of the companies first sought conversions to na­ were not available and provided needed fi­ Marine Midland group and other holding tional bank charters, the entire development nancial services. As the former Chairman company systems in this State constitute a could be set in motion without the consent, of the Federal Reserve Board, Mr. Thomas B. serious danger to the competitive banking and even against the wishes of the duly con­ McCabe, testified in 1950 "* • * in some in­ structure.25 stituted authorities of this State. Clearly stances (bank holding companies) have been In the last analysis it is evident that prac­ the efforts of this committee to legislate helpful in providing better management for tically speaking a holding company system concerning the future banking structure of banks, in assisting them financially, and in is a substitute for a branch system.20 Never­ this State would be gravely hampered. What encouraging improved banking service. * • • theless it will probably be argued here as about other competing banks in Westches• [I]n certain areas of the country where the before the House Banking and Currency ter County? It would be reasonable to con­ bank holding groups have gone in they have Committee considering the bank holding clude that their life expectancy would be provided a good banking service in areas bill that "to base holding company legisla­ considerably shorter. And what about new where it was needed and was not formerly tion on branch banking is wrong, because bank charters? At the present time obstacles available. I think also they have improved there is a difference between branches and to such charters are especially serious in efficiency. They have attained economies in affiliated, or subsidiary, bank." 27 It seems Westchester County since the County Trust bank operations. * • • In the early 1930's to me that the answer of that committee is Co. controls about one-half of all bank re­ when some of the individual banks needed equally applicable here. "Great stress has sources. With First National City Bank tak­ help the holding companies applied their been placed on their difference in form, ing over, there is little doubt that new char­ reserves to the help of their individual banks. which everyone, of course, recognizes. • • • tering in that area would be further dis· That I think was beneficial." 22 [H]owever, in a large measure they are dif­ couraged. What I recommend is that the banking ferences without a distinction. Other than THE STATE HAS POWER TO ADOPT APPROPRIATE laws of this State be amended to prohibit in form, what is the practical difference BANK HOLDING LEGISLATION any bank holding company from acquiring in between a branch and a bank the stock of In light of these developments a major the future any ·bank located outside the which is owned by a. holding company that question confronting this committee is district prescribed for branch banks. Stated otherwise, I propose that future bank hold­ whether the Bank Holding Company Act has 2:1 ing company expansion conform to the stat­ A perplexing question ls whether a for­ preempted the field or whether there is an eign holding company whose sole activity in area for permissible State action. The pro­ utory district lines drawn for State banks; in short, that expansion within this State stock is engaged in doing business in this visions of that act, coupled with its legis­ this State involves the purchase of bank lative history make it crystal clear that there be permitted only in accordance with the branch banking laws of this State. State. See 75 ALR 1242, 1250; 18 ALR 2d has been reserved to the Statewide latitude 195; 40 Yale L. J. 1242, 1250. It is unneces­ to adopt appropriate bank holding legisla­ This purpose could be accomplished by a sary to consider this question since section tion. Thus, section 7 of the Bank Holding provision making it unlawful for any com­ 3 (d) of the Bank Holding Company Act pro­ Act specifies that "The enactment by the pany, whether organized under the laws of hibits such out-of-State bank holding com­ Congress of the Bank Holding Company Act this State or having its principal office and pany from making further bank acquisitions of 1956 shall not be construed as preventing place of business in this State, to acquire 25 in the State. any State from exercising such powers and :u Cf. Annual Report of Board of Governors jurisdiction which it now has or may here­ 18 S. Rept. No. 1095 (84th Cong., 1st sess.}, of the Federal Reserve System for 1943 cited after have with respect to banks, bank hold· p. 11. See also Senate hearings, p. 48; House in House hearings, p. 169. ing companies, and subsidiaries thereof." hearings, p. 98. :s The Congress was faced with an essen­ I turn to legislative history which explains 1U CONGRESSIONAL RECORD, volume 102, part tially similar problem in connection with ln detail what that section means. The re­ 4, page 6752. a provision in the bank holding bill prohibit­ port of the Senate Banking and Currency 20 Ibid. ing further interstate expansion by bank Committee makes this comment: "* • • 21 Mississippi outlaws bank holding com· holding groups. That act, it will be noted, another provision of this bill expressly pre­ panies while Vermont bars any corporation does not affect interstate acquisition of banks serves to the States a right to be more re­ whose primary business is the holding of by holding companies prior to passage of strictive regarding the formation or opera­ stock in other corporations. Wisconsin law the bill. tion of bank holding companies within their provides that any corporation controlling a 20 See Concentration of Banking in the respective borders than the Federal authori­ majority of stock in a State bank is to be United States, Staff Report of Board of ties can be or are under this bill. Under deemed engaged in the business of banking Governors of the Federal Reserve System such a grant of authority, each State may, and subject to supervision of the State bank· (1952). p. 7. within the limits of its proper jurisdictional ·tng department. zi H. Rept. No. 609, 48th Cong., 1st sess., authority, be more severe on bank holding 22 Cited in Senate hearings, p. 344. p. 3. 1957 CONGRESSIONAL RECORD - HOUSE 457 can select the bank's directors and change Times of February 5, 1957, reads as fol­ CONGRESSIONAL RECORD the program, to­ them at its pleasure, even holding repurchase lows: gether with my remarks as principal rights to the directors' qualifying shares; speaker, covering the General Casimir that can hire and fire the bank's personnel .THIRTY-SIX TURNED DOWN BY LEGISLATURE­ and otherwise supervise its operations; that POLICE BOARD HIT HARDEST BY SOLONS Pulaski Day exercises held at Chelsea, can make its investments, handle its insur­ JuNEAu.-Acting Gov. Waino Hendrickson Mass., on Sunday, October 7, 1956. ance, buy its supplies, originate and place was faced today with the task of nominating The population of Chelsea contains a its advertising; can pass on its loans to local 36 persons to 28 Territorial agencies who will large number of people who are justi­ firms and individuals, usually receiving a be more acceptable to the Democratic ma­ fiably proud of their Polish origin. An­ fee for services performed?" The fact is jorities in the legislature than his original nually, and without fail, the commemo­ that "as each new bank is • • • added to choices. The heaviest shucking came on Hendrick­ ·ration of Pulaski Day is an outstanding those already a part of the holding com­ event in the life of the community. pany system, such bank automatically be­ son's nomination to the Territorial board of comes in effect, though not in name, a police commissioners. The · senate and It gives me pleasure to participate in branch of that banking system." 28 house-in voice votes-refused to confirm this observance, because of the genuine To my mind the conclusion is inescapable any of Hendrickson's nominations to the patriotism, and the spirit of independ­ that "despite all that has been said about commission which sets the policy for the ence, that is always in evidence. And to the distinction between bank holding com­ Territorial police. reaffirm our obligation as Americans, to pany groups and branch banking systems Here is another story from the same do everything possible under the circum­ both accomplish the same thing-the * * • n~wspaper: stances, to encourage the people in Po­ operation of a number of banking units un­ land to win permanent independence. der one control and management." 20 CURB ON POWERS OF NEW GOVERNOR URGED Through the corporate device, holding BY KAY Their long and heroic struggle against companies still can be used to evade branch JuNEAU.-Wendell Kay, Anchorage, retir­ tyranny, epitomized by General Pulaski, banking laws and thus defeat the declared ing speaker of the house, has called for the who also helped our forefathers to win policies of this State regarding branch bank­ stripping of the appointive governor's pa­ freedom for us, is the quality that we ing.:io This cannot be tolerated. tronage powers in order to frustrate the aims admire most in the Polish people. The consequences of banking monopoly are of Republican leaders in Washington. Pulaski Day is both an American and ominous, indeed. It is my hope that this a Polish holiday. uniting us in the fra­ committee and the House Committee on the Mr. Speaker, I do not know to whom Judiciary, each will take prompt, effective, he refers when he says "Republican lead­ ternity of those to whom freedom is the and appropriate action to help insure that ers in Washington." I certainly know of breath of life. that condition will never come to pass. no Member of Congress who has plans [From the Chelsea (Mass.) Record of afoot to build a Republican machine in October 8, 1956] Alaska. I suspect that the Democrat POLAND'S FIGHT FOR FREEDOM Is KEYNOTE leader is trying to justify actions taken OF GENERAL PULASKI DAY PARADE AND Statehood for Alaska by his party to embarrass the appointees EXERCISES of o'..lr Republican President, actions that Tribute was paid the memory of one of are clearly political in intention and Poland's greatest patriots and America's EXTENSION OF REMARKS scope. I am perfectly willing to recognize Revolutionary War heroes, Gen. Casimir Pu­ OF the Alaskan Legislature's right to object laski, yesterday when the Polish United Societies, with the cooperation of the St. HON. WILLIAM A. DAWSON to some nominees for State positions sub­ Stanislaus Parish, local and out-of-town vet­ OF UTAH mitted to it by acting Governor Hen­ eran posts and auxiliaries, National Guard drickson. But for the members of the unit, and residents, participated in a parade IN THE HOUSE OF REPRESENTATIVES legislature to reject, in sweeping voice and a speaking program at the Pulaski mon­ Thursday, January 10, 1957 votes. 36 nominees to almost all of the ument in Chelsea Square. Alaska governing boards is nothing but More than 5,000 persons participated in the Mr. DAWSON of Utah. Mr. Speaker, politics and politics at its vindictive imposing parade, a highlight of the celebra­ as a Member of Congress, as a member worst. tion, with marchers, including schoolchil­ of the House lnterior and Insular Affairs In supporting statehood for Alaska, I dren and youngsters from the greater Bos­ Committee, and as a Republican, I have ton area, following a course along Chestnut during all of my service in Congress have assumed that the residents of that Street, Armory Street, and Broadway to the State had achieved the political maturity monument. supported statehood for Alaska. to govern their own affairs wisely and I have done so with the expectation Congressman THOMAS J. LANE was the prin­ well. The actions of the Democrat ma­ cipal speaker during the 25th local celebra­ that Alaska, after being granted state­ jority of the Alaskan Legislature have tion sponsored jointly by the city's Polish hood, would send Democrat Senators shaken this assumption. As a Member United Societies and the St. Stanislaus par­ and a Democrat House Member to of Congress who must vote on the issue ish. Other notables who spoke at the mon­ Washington. I have also sponsored leg­ of statehood, both in committee and on ument included Rev. Anthony Konieczny, islation to permit Alaska to elect its own the :floor of the House, I intend to keep a curate of the St. Stanislaus parish; Mayor governor with the knowledge that this Hugh J. McLaughlin, Karol Jasholski, editor close watch on the developm.ents in Alas­ of the Polish Daily News; Attorney Stanislaus too would mean that a member of the ka. As a Republican, I deeply resent po­ Democratic Party would in all prob­ Suchecki, president of the Polish American litical reprisals against duly constituted Congress, eastern Massachusetts district, and ability become Alaska's first elected chief authority in the Territory of Alaska, chairman of the observance, Willard Jagolta executive. solely because the authority happens to and Roman F. Pucko. The issue of statehood-the question be a Republican also. Let the Demo­ In a stirring address Congressman LANE of whether residents of Alaska should be crat members of the Alaskan Legislature pointed out that Americans are proud of the represented in Congress by voting mem­ weigh this observation while they are faith and courage of Gen. Casimir Pulaski, bers-should, I feel, be above politics. l passing resolutions urging me and other father of the American cavalry, and Revolu­ have so conducted myself in supporting Republican Members of Congress to vote tionary War hero, and to the people of Po­ this legislation. land and the people of the United States them statehood. his name is immortal, and as time goes on For this reason, I am greatly disturbed his fame will become universal. by some newspaper accounts of the ac­ General Pulaski knew that freedom and tion of the Democrat-controlled Alaskan tyranny can never live together. One, or the Territorial Legislature. The headline General Pulaski-Poland-and Freedom other, must prevail. We know that commu­ story of the Anchorage, Alaska, Daily nism will destroy itself, eventually, but only EXTENSION OF REMARKS after it has brought much suffering to the !?8 Statement of Mr. Thomas B. McCabe, OF world. Chairman, Board of Governors, Federal Re­ "From every community where this day is serve System, cited in House hearings, p. HON.THOMASJ.LANE honored, we send a message to the people of 212. Poland and every captive country telling 29 Statement of R. M. Evans, former mem­ OF MASSACHUSETTS them that the spirit of Pulaski live.a on in ber of the Board of Governors of the Federal IN THE HOUSE OF REPRESENTATIVES every true American. We have not forgotten Reserve System, before the Senate Banking Thursday, January 10, 1957 those who yearn for liberation. We shall and Curr-ency Committee in 1952, cited in bring public opinion to bear so that the House hearings, p. 169. Mr. LANE. Mr. Speaker, under leave United States shall speak up, time and again, 39 Ibid. to extend my remarks, I include in the for the emancipation of all who are enslaved. 458 CONGRESSIONAL RECORD - HOUSE January 10 This ls our duty as free men," the speaker Avoidance of war, however, does not mean STENNIS was introduced by Frank Ahl­ said in part. that we must become silent, inactive, a·nd gren, editor of the Commercial Appeal, The Pulaski Day program began at 10 a.. m. spineless. · and the enthusiastic sponsor of the when military units and civic organizations Suppose Pulaski had said to himself, as plant-to-prosper annual competition. from Chelsea, Metropolitan Boston, and the some American leaders do today, "Why should North Shore paraded into St. Stanislaus I bother myself with happenings in another The speech follows: Church for the celebration of a military country thousands of miles away?" Mr. Chairman, Mr. Ahlgren, distinguished mass offered by Rev. Felician Plichta. If be and other fighters for freedom had guests and friends of the plant-to-prosper Very Reverend Szpara, pastor of the St. not come to our aid, the American Revolu­ audience, I first want to thank Mr. Ahlgren .Stanislaus Church preached the sermon and tion might well have failed . for his very generous introduction. I am spoke briefly of the deeds of Pulaski and re­ At the bead of the Pulaski Legion, he gave delighted to be vouched for by this great called the miracles at Czestochowa when 300 his life in battle to help win the war for our news editor and splendid leader in our Mid­ years ago the Polish Nation was invaded by independence. south. the Russians, Turks, and Swedes and through In return, he did not ask much of us. Only I want to express also my appreciation to the faith of their religion were able to defeat that we should not forget the struggles of Mr. Hansen for coming here today and join­ the enemy and so today through their con­ other peoples for their freedom and give ing in this program and to congratulate tinued faith and prayer will soon, once again them at least-our moral support. him for his fine knowledge and understand­ help to destroy communism and enjoy free­ If General Pulaski were alive today, he ing of the people and the problems of our dom, a God-given human right. would have been thrilled by the spirit of area. I predict for him that which has al­ The senior girl's choir and the St. Stanis­ the people in Poznan, Poland, who rose up ready started-an outstanding administra- . laus Holy Name Society choir rendered spe­ against their Communist oppressors. These tion by an understanding and able man who cially arranged selections under the direction brave people knew that they did not have has a big heart for the farm people. of the church organist, Edmund Jagielski. a chance, but they dared to fight and die READS OF PROGRAM for a principle. The'ir heroic example will At the close of the services the military Friends, you know, when we go to Wash­ units, bands, fiagbearers, societies, and strengthen the Polish resistance, and un­ ington we have to give up a great deal of schoolchildren formed for the parade to the nerve the Communists. our home things, but happily for me there monument. But General Pulaski would have been dis­ is one thing that I have never given up yet, Lt. Stanley Trockl was in charge of the mayed by the silence of the American Gov­ and that is reading the Memphis Commercial police auxiliary unit. State commander of ernment. Appeal, and I read it every day-the old re­ the Polish American Veterans, Inc., of Massa­ Not one word of tribute for these cour­ liable-take it along with me. Among other chusetts, served as chief marshal of the pa­ . ageous people of Poznan. things that I thoroughly enjoy during the rade, assisted by Commander Henry Owocki Not one indication that our Government course of the year is reading about this of Post 13, PAV; Joseph J. Naroski, senior sympathized with their revolt against wonderful plant-to-prosper program. vice commander of the Coast Guard League, tyranny. I am deeply honored to be here today with District 10; Edward Smigieiski, past com­ Only the moderation of complete silence. the leaders, Mr. Ahlgren and his fine mander of the Chelsea Lyons Post; and Bo­ On this observance of Pulaski Day, we staff, the Memphis Chamber of Commerce, leslaw Czyzewski, former member of the want to make clear that the strange indif­ the other sponsors of this wonderful pro­ Chelsea Park Commission. ference of the present administration does gram, but more particularly with the par­ not represent the true sentiments of the ticipants, the people that live out on the GENERAL PULASKI-POLAND--AND FREEDOM American people. land and love the land. A great man never dies. We have not forgotten the example of The great appeal the program has to me His spirit lives on as an .example to the General Pulaski. is that it reaches not only the large land­ generations that follow him. His courage. owner, but the middle group landowner, the Gen. Casimir Pulaski, father of the Amer­ His generosity. very small landowner, and not only that-­ ican cavalry, was a Revolutionary War hero. His regard for other people. those that do not yet own land but have We are proud of his faith and his courage. In his memory we have a debt of gratitude visions of it, dreams of it, and have plans To the people of Poland, and the people of to pay. · about it, and are striving to bring those plans the United States, bis name is immortal. From every community where this day is about. As time goes on, his fame will become honored, we send a message to the people Now I want to emphasize in the very be­ universal. of Poland and every captive country telling ginning that there is not now, and there Other men have fought for the independ­ them that the spirit of Pulaski lives on in won't be, in my opinion, any kind of a Gov­ ence of their own native lands, but General every true American. ernment program that will be a substitute Pulaski is outstanding because he fought for We have not forgotten those who yearn for the necessary qualities and virtues of in­ the freedom of humanity. · He knew-far for liberation. dividual self-reliance represented by grit and ahead of his time-that a world divided, half­ We shall bring public opinion to bear so determination and a willingness to make a slave, and half-free, cannot endure. that the United States shall speak up, time start at the bottom if necessary and build That is the truth he pointed out to us so and again, for the emancipation of all who upward from year to year. I don't think long ago. are enslaved. there will ever be a substitute for that in That is the message he would tell us today. This is our duty as free men. American life and I hope there will never be. In 1956-even as in 1776-there are people And as "patriots for humanity," guided by who care not about those who suffer under the faith and example of great men like SEEK BETTER WAYS tyranny, as long as they themselves are un­ Gen. Casimir Pulaski. Also, we must always be willing to look touched by it. for better uses and better methods of farm­ They talk about communism and its ing and be willing to carry them out-better crimes, as if this terror were taking place on . seed, better fertilizers, better uses of our some far-distant planet and not on their Senator John Stennis' Address Before land, and take advantage of all advancement own earth. As if it were happening to that agricultural research and agricultural strange creatures on Mars instead of their the Memphis Commercial Appeal Plant· planning may do. But in addition we are en­ fellow human beings in every captive coun­ titled to the assistance of our great Govern­ try, including Russia. To-Prosper Forum ment when the individual farmer cannot go General Pulaski knew that freedom and all the way. tyranny can never live together. One, or EXTENSION OF REMARKS And, by the way, friends, there's a great · the other, must prevail. OF deal of current thought now that the small We know that communism will destroy farmer is on the way out. We are talking itself, eventually, but only after it has HON. FRANK E. SMITH now of a matter of business instead of a way of life. We are talking about it being solely brought much suffering to the world. OF MISSISSIPPI The tragedy is that its evil career ls pro­ a matter of efficiency. Well, let me tell you longed because free governments turn their IN THE HOUSE OF REPRESENTATIVES one thing: We must always look to those backs on the peoples· of those nations that Thursday, January 10, 1957 of efficiency, but I totally disagree with any have been enslaved by communism, and kind of philosophy, be it found in govern­ refuse to· offer them one word of encourage­ Mr. SMITH of Mississippi. Mr. Speak­ ment, be it found in business, or in agen­ ment. er, under unanimous consent, I include cies or associations or any group, that family In one respect, freedom ts like the air a very thoughtful speech delivered be­ life on the farm is solely a. matter of effi­ we breathe, because it is necessary to life. fore the Memphis Commercial Appeal ciency or is a business proposition. But we Americans, having enjoyed it for plant-to-prosper forum by Senator JOHN I believe that the greatest asset the Amer­ so long, assume that it comes "ready-made," ican Government has today is the way of provided by nat·ure, and requiring no work C. STENNIS, of Mississippi, at Memphis, old-fashioned Americanism, thought and on our part to produce it or maintain it. Tenn., on December 21. habits and conduct and ideals of our people No one-I repeat--no one advocates that Mr. Kermit H. Hansen, Administrator that live on the land, the family-sized farm. we go to war in orc!.er to liberate the captive of the Farmers' Home Administration, I believe it is the greatest asset in our nations. was also on the program, and Senator political thought and that people reared 1957 .. CONGRESSIONAL RECORD - HOUSE 459

there come nearer thinking and actillg and cbme from forest·· products from the area -product and trles it out on the people that voting the old-fashioned Americanism than represented here today represents more than 1i ve on the land. any one other group. And I believe further $1 billion per year. A striking illustration I found in my home that it is the great spiritual reservoir of I understand from reliable sources that State-a young dairyman with a very small this Nation as it has been for many decades income could almost be doubled within less herd. An agricultural agent came along past. And I pray and hope that it will be for than 10 years. The major part of the great and made some suggestions to him about many, manY: years to come. manufacturing development, industrial de­ feeding his cows and he actually doubled A WAY OF LIFE velopment, for this area lies in the future of his milk production within less than 60 days the raw product, the forest product that we without additional cost for feed, either in It is not necessarily an economic unit; it are learning better how to grow. money cost or-in amount of feed, by changing is a way of life. I think one of .the primary TELLS OF FOREST TRIP the formula of the mixture. This shows the functions of our Government is to make it tremendous possibilities that lie ahead in possible for that group, those who live on Why, when I recently went through north­ research and the application of that research, the land as a way of life and rear their fam­ ·ern Minnesota at the request of the National and I pledge to continue to fight for a ilies there, to make it possible for that group Forestry Commission where they showed me long-range program. The necessary money, to survive and they will survive as long as their model 2,000-acre forest, we marched as I see it, is relatively small after all, to the cards are not marked against them and through the great land there and saw 16-inch carry on those far-reaching :programs, be­ as long as the avenne for development is left trees on the average. They told me all the cause I believe that, after all is said and done, open. good things about the magnificent forest ex­ the gateway to the future of farming is the And that is one of the great goals and one cept one thing, that I was primarily inter­ long-range fundamental development; and of the . great contributions .that this great ested to know, and that was the age of those what farming is going to mean to our area plant-to-prosper program is doing. And ln 16-inch trees. is determined more by this long-range pro­ that connection, that brings up the question I asked that question and was amazed at gram of research than any other one thing. of what we are going to do with our land in the answer, when he told me the average age years to come. Who is going to own the land was 100 years. One hundred years to grow a COTTON PROGRAM CITED in Mississippi, Tennessee, Arkansas, and 16-inch tree that those of us in this area can May I mention, in passing, that which is of southeast Missouri? I hope we will go very grow in 18-20-25 years. Our long growing vital importance to our area and that is the slowly, my friends, in selling and disposing season, our great rainfall points out the pos­ cotton program. I hope and I think that we of our land. It should be put to construc­ sibilities especially in view of the great pulp­ will always have to have a cotton program tive uses, of course. and I am not in sym­ wood industries, that's just beginning to and I don't believe that the 90-percent sup­ pathy with absentee ownership of land. But grow, offering an actual income and an actual port price nor the sliding support price on those of you who have your land or are plan­ market here only 8 years after pine seedlings the Government loan for cotton is the answer. ning to buy some, let's continue to put tQ.at are planted in soil that is now largely going I do not believe either one of those systems high value on it. to waste. serves the purpose. Those who are thi~king of selling, be sure NEED FOR FARM CREDIT Why, we had 3 years of acreage reduction you get value if you have to sell, but let's that has already reduced the parity sup­ keep the land within the ownership of the May I mention quite briefly the continu­ port on the basis of 1953 to only 54 percent of people who live here and love that land. We ing need for farm credit, on a sound basis, of parity. We cannot stand to continue dev­ now have 168 million people in the United course. .It must always be made available astating acreage reduction like we have been ·states. It is estimated that by 1965 we will and offered by the Government to supple­ subjected to. I think a more realistic pro­ have almost 200 million people, and that's ment local lending agents-longtime loans gram will have to fundamentally meet the not too long off. But there's not going to be for the growth of these pine seedlings that I competitions of cotton, the competition at any more land. Let's think a long time be­ have mentioned. I think that, without any­ hoine with synthetics, and the competition fore we thoughtlessly or carelessly dispose of one being at fault particularly, it has been abroad from foreign growers. our land. one of the great drawbacks for our area of We are going to have to have a price to the country for many, many decades-our keep us in the market. There must also be a OuTSTANDING FACTOR lack of ad€quate farm credit on a longtime Now may I briefly mention what I believe protection to farm income and there must be basis. a program that will keep in balance the is one of the outstanding contributions of · And I pledge you so far as I am concerned this plant-to-prosper program and the great supply and demand on a more uniform basis, a continuation of what I believe now is a not a great surplus 1 year, and 2 years later, host of agricultural agents, technicians of sound program. the Department of Agriculture, both men the surplus all gone and unusual acres again. And may I mention our research program? I think that program must necessarily carry and women, that we have throughout the Although I went to an agricultural college great Midsouth area. I deeply appreciate a finer measure of protection for the small­ and I have been connected with agriculture and family-size farm. their fine leadership over the years. I think and agricultural people all my life, it took perhaps the greatest contribution they have the editor of the Commercial Appeal to fully CAN'T CARRY LOAD made and this program has made are the awaken my realization for the need of long• I am sure the farmers cannot carry the great strides forward in diversification-the term research. He was one of those who entire load of a cotton program along those diversification of the use of our lands plus contributed greatly to my thinking as well lines, but with the wage-and-hour law as it improved methods. as inspired me. is, with industry having the protection that I shall not stop to relate here the details We now have a- program of research. I it does from the tariffs, I feel like the Govern• now but it shows what can be done by the am embarrassed in a way to mention the ment, of necessity, will have to carry part people who have the grit and the determina­ figures that we spend for military research, of the load of adjustments. And I have .au­ tion and want to improve their land and their but without elaboration, you might be sur· thored the resolution now in the Appropria­ place, led by technicians and agricultural prised to know that last year we spent al­ tions Committe·e calling for a special study of leaders through new methods, shows what most $2 billion for military research. the effect of these various price supports on vast opportunities lie before us and what So, the few million dollars that we spend the consumption of cotton. real achievement and accomplishments can for agricultural research you readily see is That's what we must have. And I hope be done. I refer briefly to the cattle indus­ not what is a threat to the balancing of the that with the study completed and more try that's doubling, tripling, and quadrupling budget, nor a threat to cause your income facts before us and with reference to the ef­ by the decades in our great era-the growing tax to go up. fect of these different programs, that we will of rice, the growing of soy beans, the growing TELLS OF RESEARCH be able to work out a more balanced pro· of more corn, and, of course, greatly increas­ gram, that may have to surren~er something ing the production of the old reliable cut And when I say "research," I'm not talking _ in the way of price support in order to get which has already been mentioned. about just producing more on the same more acres that we can produce on and work May I mention, too, very briefly, the great ground. Someone said we have a surplus on our farm. possibilities, as I see it, that lie before your now. Agricultural research now is going into Now, I have given you the highlights of . group and development further of our for­ some of the things that I think may affect estry possibilities. Maybe not so much in the fields of reducing the cost of production, reducing the cost of processing the agricul­ you in our future and you can rightly say to this immediate area here of Memphis but yourself: ".Well, STENNIS, you're talking throughout the Midsouth. I was called on tural product, increasing the quality of growth, trying to find new crops to grow about all those fine things, what kind of a recently to give a summary of our major agri­ world are we going to have to live in and cultural problems in Mississippi and I said I · on our land that we already have and new uses and additional uses for old crops, ex­ _ work in, anyway?" believed I could sum it up generally in two What about the threatening war clouds in words, and that was "idle acres." And that · periments with reference to new equipment and new ideas for the farm, extending all the Middle East. Our boys still are having summary applies in a great measure to the to answer the selective-service call, the peo­ areas of other States represented here today. this into livestock, diseases of livestock, para­ sites, more products for the same feed and ple subjected to this enormous taxation to REFORESTATION NEEDED better pastures, great experiments going on take care of the tremendous military pro­ Those areas have more than 8Y:z million in the field of irrigation, the methods to gram. acres now that need reforestation · and only use,· the cost of applying the water, and the Perhaps, I should take a few minutes along 11 percent of that need has been met. In- extension of service lt takes this research that line of thought. 460 CONGRESSIONAL RECORD - - HOUSE January 10

Things do not look good. There's ~rouble­ give the order for that force to move into made if we put all our faith in the formula, some times in the Middle East. I think action, there are certain bombers who wiH the part of the formula I have been talking there is going to be troublesome times at any be on their way in 5 minutes. There are about in force and might and money, if we places in the world that Russia can stir up others who would be on their way in 10 overlook the necessary ingredient of spir­ trouble. minutes, others in an hour,_ and others in itual power as a part of a formula for peace SAW OPPORTUNITY 3 hours-from places all over the world. for our Nation and our world. At another I'm not basing my remarks upon the long­ But, you say, what about the other side; great critical time in history during our time enmity, and it is almost hatred, be­ what do they have? own Constitutional Convention, when the tween the Jewish people in Israel and the . They have a striking power that could delegates were deadlocked and it seemed Arabian people represented by Egypt and come, and. some of them could reach us, that nothing would be accomplished, Ben­ other nations. ·I am not referring to the even though we have all the defenses science jamin Franklin addressed the Chair one difference between France and England on knows about, and nothing has been spared to morning with these remarks. With George one side and the United States on the other, make them the very best. · Washington in the chair, he said: "Mr. Pres­ and leaders in the Western World. I am re­ But I think they have the striking power ident, I have lived a long, long time. The ferring to the role that I:ussia is trying to to come here, and some of them would get longer I live, the more certain I am that God play in coming in and taking over the Middle through and drop their bombs. does govern in the affairs of men. And if a East. And I think that is invasion. I think, But I feel certain that if they did, if they sparrow cannot fall to the ground without friends, that when the British pulled out of ever did get back to Russia, there wouldn't His notice, is it probable that a nation can rise without His aid?" the Suez area in 1954 they left a possible be any landing fields to land on when they trouble spot and Nasser tried to move in and got there, because our strategic air force And with that, he made the motion that take it over and couldn't. would have already been able to take them they open their future sessions with prayer Russia saw her opportunity. I think that off the map. and they did. And in less than a week th~ unless we let Russia know in no uncertain . I say that as I say humbly, with a prayer, mist had disappeared, the obstacles had been terms that we are going to stop her, I believe that the command to go will never be made. removed, and those men came out with the that she will eventually move into the Middle We have the men; we have the bombers; we Constitution of the United States. It has East, perhaps through Syria, and eventually have the bombs. been our safeguard and our model, not only Men have already made trial runs over a for us, but for freedom-loving people around take over that area by force. Now what is the world. · their objective? Do they want the Suez great deal of the area. They would go toward Canal? Those nations over there know Rus­ a target that perhaps has already been as­ A POWERFUL NATION sia wants one thing and that one thing is the signed to them. We have grown to be the most powerful necessary · to complete her war machine. I am not trying to give you a scare talk. nation in the world and I believe that those Without it, she will not be able to carry on a That's a part of a picture that you must live of us living now have opportunity far greater major war and that's a three-letter word-oil. and your children must live. And I think than those men who wrote the Constitu­ Russia is trying to move in and take over that we have many uncertain years ahead, tion of the Un~ted States. And I hope with the oil of that great Middle Eastern area. but I actually think that on the whole we are them, that we will rise to the occasion and Now who can stop her? Can those Arabian going to avoid world war III. And if we do, with them will look to the High Power for nations stop her? Not if they want to, but I believe we are standing at a threshold of light and for guidance. When we make up they can be pushed aside like a straw: Their a great new era of development that will our minds to do our part, and look to the per capita income is only $81 per year in almost be worldwide. We will be right at High Power for that light, we will find our Egypt, not per month, per year. Countries the head of it. We have the chance to be. way. like that cannot stop a formidable power in A great deal of it will be based on atomic As we go, God gives us strength and cour­ these days of force and military might. Is energy. age to face responsibilities and opportuni­ there anyone that can stop her except us? My friends, do you know that this new ties rather than turn our backs on them. No, unfortunately, the answer is "No." So I power that God has leashed and given to And as we go, may God bless you and may think we are faced with the proposition that mankind already has given us a submarine God bless America. I thank you. within the next few months, and we have that will go all the way around the world been burning daylight already, we are going submerged and has never had to refuel yet? to have to let Russia know in unmistakable It is still running on the original power that terms with a direct message that we are not they put in it when they launched it. going to let her come in and take over that AIRPLANE PLANNED The Small-Business Dilemma area and we ought to be mobilizing now the And that same force is being coupled with entire free world to protect ourselves from an airplane. When it is completed it will be EXTENSION OF REMARKS that position, continuing to make clear that able to fly around the world without having OF we have no desires on that area and do not to refuel. Think of that. While the great want to take it over. As I say, all these tremendous constructive possibilities of this HON. EMANUEL CELLER other questions you read so much about in atomic power tie in with the mechanical, the paper fade into insignificance by the scientific ingenuity, people .of our country OF NEW YORK side of this major one and that is that and other countries think of the great possi­ IN THE HOUSE OF REPRESENTATIVES Russia wants and must have oil, to carry bilities of development for i:r;icreased produq­ Thursday, January 10, 1957 out any appreciable large-scale war. tion-a great chance for exchange of goods WAITED TOO LONG between nations. Mr. CELLER. · Mr. Speaker, under we are standing on the threshold of a leave granted to extend my remarks in Well, you asked me the question, and I great era politically-in the politics of the want to say this further: I think that we the RECORD, I include the following ad­ world, so to speak. I believe in the United dress made by me before the National waited too long in taking, we waited longer Nations, believe we have more at stake than than we should in taking a firm position any other nation on the globe. We must Association of Independent Business on like that. continue to back it to the limit, not in the October 11, 1956: We have a military striking power now, a idea of any world government-far from it-­ THE SMALL-BUSINESS DILEMMA military force and strength that is greater the very opposite. United Nations is a united (Address by Representative EMANUEL CELLER, than any nation has ever had in the history effort, a united effort to preserve the peace. of the world. Far greater-far greater than chairman of the Committee on the Judi­ And right :n,ow, today, for the first time in ciary, United States House of Representa­ we had at the end of World War II. We say the history of the world, armed forces repre­ that humbly. We do not want to use it, and tives, before the National Association of senting the United Nations of the world are Independent Business, October 11, 1956) I pray that we will never use it; but if we moving into Egypt and are actually taking have to, you rest assured that we have it. Tonight I should like to discuss with you over a trouble spot where the shooting has some of the questions which are perhaps It cost you a lot of money, it has been cost­ already started in a war, ·and the troops uppermost in your minds as representatives ing your boys something in service, and some from both sides are moving out, and a police of the small-business community of this sacrifice, but we have it, and, if need be, force, so to speak, is moving in. it's ready to go--not tomorrow, but today. I don't know if it will be successful or Nation. Our strategic a,ir arm, with long-range not, but it's on its way. And if it is, as a Have President Eisenhower and his subor­ bombers and with all kinds of bombs is monumel'ltal precedent that's been estab­ dinates faced up to their responsibilities in ready to go now on the order of the Presi­ lished by mankind in his long, hard strug­ dealing with the essential problems of small dent of the United States, the only person gle forward, toward moving into an area business? in the world who can order it into action. and taking away a trouble spot before it de­ Have the vital needs of small business been velops into an all-out war. met or does the situation demand corrective COULD DROP BOMBS action? We never surrendered any control over that NOW ON THE THRESHOLD The antitrust laws of this Nation were strategic air force that Churchill calls the I believe also that if we can have those adopted because of a deeply rooted faith in policemen of the world. We have never sur­ things, we are standing on· the threshold of a free-enterprise system that relies upon rendered any of it to·any of the-nations, and a 'great era' of spiritual deveJopm.ent: We vigorous _competition; a system where eco­ - do not expect to.·: If the President should . will make the worst ~istake any people ever nomic activity is controlled, so far '.as pos- 1957 CONGRESSIONAL Rf:CORD - HOUSE 461 sible, by the market and not manipulated tion's financial interests in fewer and fewer Federal Trade Commission with violations by a handful of men; a system in which hands. In 1955 alone, 250 mergers have oc­ under the Clayton Act during Mr. Howrey•s prices, output, wages, and other rewards de­ curred-a 24-year record. 33 months in office as in the preceding 33 pend, not on the decisions of a few big­ The administration's record in dealing months under his predecessor, former Demo­ business executives, but on the independent with bank mergers is, if anything, even worse cratic Senator James M. Mead. actions of competing business firms. than its record in dealing with corporate But there was one major difference-the The reaffirmation of these fundamental mergers. The Comptroller of the Currency size of the companies against whom the principles in the present Democratic plat­ of the United States, Ray M. Gidney, is vested Commission instituted proceedings under form is particularly significant in light of by Federal statute with the responsibility for Mr. Howrey dropped very appreciably indeed. the growing economic control of the market­ approving or disapproving every bank merger During the 33 months, June 1950 to March place by big corporations during the Eisen­ where the resulting entity is a national 1953, the companies charged by the Federal hower administration. The major trend in bank. Mr. Gidney has repeatedly assured Trade Commission with violating the anti­ industry after industry is in the direction of our Antitrust Subcommittee that he would trust laws were, on the average, approxi­ fewer companies of greater size. In the most not approve any bank merger which would mately eight times as big as the companies important half of American industry today be contrary to the policy of the Celler­ charged with such law violations during the there continues to be a pattern of oligopoly Kefauver Act. . 33 months under Chairman Howrey. In the . where not less than 2, or more than E, large What are the facts? The facts are that · 1950-1953 period average asset size of the corporations have 50 percent or more of the -Mr. Gidney, during the 3¥2 years he has been companies charged was $256.2 million. In volume of that industry between them. in office, nas rubberstamped over 300 bank the 1953-1955 period it dropped to $32.5 Three companies control 100 percent of the mergers throughout the country. Many of million. aluminum output of the United States; these bank mergers have had extremely dam­ It would appear that the giant corpora­ 3 companies make 95 percent of all our auto­ aging consequences. But in no instance has tions are the ones who had less to fear from mobiles; 3 companies make 95 percent of Mr. Gidney disapproved a bank merger on antitrust prosecution by the "reorganized" our tin cans and t]nware; 3 companies make the basis that it might substantially lessen Federal Trade Commission, while it engaged 90 percent of our linoleum; and 3 companies competition. How can small business find in a search for smaller game. virtually control cigarette manufacture. comfort in such a record? The antitrust enforcement record of the Small business has been caught in a To cope with this merger trend, I intro­ Department of Justice does not present a squeeze and within the past 3 years finds duced H. R. 5948 to plug a loophole in exist­ brighter picture. Increasing resort to con­ itself with a rapidly diminishing share of ing law pertaining to bank mergers, and H. sent decrees by the administration's anti­ the Nation's market. By 1955, firms with R. 9424, the premerger notification bill. trust officials has prejudiced small business. assets of $250,000 or less, had suffered a 26 Both bills were regarded by small-business While in certain circumstances the consent percent loss in their share of the market as organizations as of utmost importance. decree may provide a useful technique, it is compared to 1952. This while the share of Both bills were adopted by the House with­ another matter to make promiscuous use of the industrial giants rose 15 percent. Also out dissent. But in the Senate, the story the consent decree to wipe out pending suits in 1955, corporations with assets of 111100 was different. There, consideration of these regardless of the harm to the small busi­ million and over accounted for 60 percent of bills was delayed repeatedly by the Senate ness victims of antitrust violators. The the total increase in manufacturing sales. Judiciary Committee owing to obstruction­ issuance of a consent decree places an im­ During 1955 the biggest corporations had ist and delaying tactics by three Republican possible litigation burden upon the injured a profit rate of 14.4 percent, while the small­ members of that committee. True, Presi­ small businessman seeking court damages est group reported earnings of but 4.45 per­ dent Eisenhower gave lipservice to these for his losses. Moreover, the antitrust vio­ cent. What is more, between 1952 and 1955, proposals. But apparently General Eisen­ lator is frequently permitted illegal gains. the earnings of the small concerns fell off hower is not master in his own house, for Finally, the appropriate Congressional com­ 27.4 percent while the earnings of the large the fact is that top-ranking officials of his mittees and the public are not permitted to concerns increased by 58.5 percent. In administration lobbied .actively and vigor­ know what has transpired in the secret ne­ short, while the earnings of the giant com­ ously to get these two bills killed. gotiations leading to settlement. panies reached new highs, profits of the In the final week of this congressional The 1955 consent decree in the American smallest manufacturing plants kept falling. session, the premerger notification bill which Telephone & Telegraph case illustrates the It is characteristic for the Eisenhower also contained a provision closing the bank­ dangers of the consent decree procedure. administration to point with pride to an .merger loophole, was finally reported out The A. T. & T. decree represents one of the economic atmosphere which makes it pos­ favorably by the Senate Judiciary Commit­ worst antitrust dispositions I have ever seen. sible for the big corporations of this Nation tee. However, because of the delay that had The complaint in this case was filed in to reap record profits while small enterprises taken place, the bill could not be taken up 1949 after years of investigation. It charged are worse off than they were 3 years ago. by the full Senate except on unanimous con­ that the Western Electric Co., a wholly owned subsidiary of A. T. & T., manufactures Another indication of this attitude has sent. The coup de grace was formally ad­ ministered by Senator BRICKER of Ohio, whose and sells more than 90 percent of all tele­ been the equanimity with which the admin­ objection prevented passage. phones and telephone equipment sold in istration has viewed the growing epate of I would state at this point that one of the the United States and that a substantial corporate mergers. Nineteen hundred and first bills to come before the Congress during part of the remaining 10 percent is pro­ fifty-five set a 25-year record with 846 merg­ the next session will be a bank merger and duced under the control of Western Elec­ ers consummated. Furthermore, in the 3- premerger notification bill which I shall tric. year period ending in 1955, the number of again introduce. Furthermore, I shall re­ The complaint further charged that West­ mergers was 64 percent greater than in the double my efforts to see to it that this meas­ ern Electric and A. T. & T. combined with preceding 3-year period. Even the Wall ure becomes law. each other to monopolize the United States Street Journal was constrained to remark in Merger enforcement activity is only one telephone manufacturing and telephone 1955 that "company mergers and acquisi­ part of the responsibility of the Federal service industries. To correct this monopoly, tions are taking place at an astonishing Trade Commission and the Department of the complaint requested the court to force rate." Justice. There are mi:i.ny other areas where A. T. & T. to sell all of its interest in West­ Many of these mergers have injured small vigilant, hard-hitting antitrust enforcement ern Electric so that the business of manu­ firms by making it increasingly difficult for is of vital importance to small business. I facturing telephones would be divorced from them to compete with newly consolidated am referring to prosecutions to end monop­ the business of operating telephone serv­ mammoth corporations. In a number of olies, restraints of trade, price discrimina­ ice. instances, small-business customers o::: the tions, tie-in sales, and other unfair methods This was the heart of the suit-to break acquired enterprises have found their of competition. up the combination of A. T. & T. and West­ sources of supply cut off. And frequently How has the Federal Trade Commission ern Electric. Yet, the consent decree does small suppliers have found that the merged exercised its responsibilities in these areas? nothing to carry out this most important ob­ corporation no longer needed their products I observe that in 1953, Mr. Edward F. How­ jective. The corporate structure of this and services because the merged corporation rey, a Washington attorney who for many combination not only remains unchanged itself has become a fabricator. years had represented defendant corpora­ but is fused even closer together. The The Celler-Kefauver Antimerger Act was tions in proceedings initiated by the Federal manufacturing and telephone service mo­ adopted by the Congress on December 29, Trade Commission, was appointed chairman nopoly is still concentrated in the same 1950, to limit future increases in the level of of the FTC by President Eisenhower to fill hands. economic concentr.ation resulting from cor­ a 6-year unexpired term of a former com­ The complaint asked that Western Electric porate mergers. Hc.wever, as the House Ju­ missioner. Following his resignation after be required to sell to A. T. & T. its 50 per­ diciary Antitrust Subcommittee found last 2¥2 years in office, Mr. Howrey when asked cent ownership of Bell Laboratories so that year after extensive hearings, merger ~n­ what he considered his major achievement research and experimentation by other and forcement activity by the Federal Trade Com­ as chairman of the Commission replied, "I small manufacturers would be encouraged. mission and the Department of Justice has am very proud to say that I reorganized it The decree requires no transfer of owner .. been . negligiple. Both, in fact, failed to trom top to bottom." ship in Bell Laboratories. enforce the antimerger law promptly, vigor- This reorganization shows a very interest .. In this and other vital respects the sett1e·­ ously, or effectirvely. - ing pattern. It shows that the same number men t left this monopoly as is, except tha·t In the banking field, a similar merger of con1plaints were issued and the same A. T. & T. now has the added advantage trend is concentrating control of the Na- number of companies were charged by the of the Government's seal of approval and ·462 CONGRESSIONAL RECORD - SENATE January 14 immunity from further monopoly prosecu­ -Secretary of Commerce Sinclair · Weeks, this corporations. This alters a historic economic tion in the foreseeable future. time joined by Attorney General Brownell, pattern. For years prior to the advent of Considering all the circumstances, I am was opposed, as were representatives of big­ this administration special programs had not surprised that Attorney General Brown­ business organizations, including the Na­ been in effect to help small business firms ell has refused to comply with our subcom­ tional Association of Manufacturers. Tbe obtain a fair share of Government contracts. mittee's request to make available for exam­ Federal Trade Commission first opposed the By way of contrast, in 1955, 100 large United ination the Department of Justice files re­ ·bill, then reversed its position. States corporations and their subsidiaries lating to settlement of the A. T. & T. case The administration's attitude was demon­ were awarded a record share of 69 percent of in order that a determination might be strated by the position taken on this bill all defense contracts. This took place despite made by the subcommittee as to the pro- by Wendell Barnes, Republican head of the the fact that the small business share of de­ priety of the decree. · Small Business Administration. Mr. Barnes, fense contracts fell about $1 billion below its Contrast this antitrust enforcement rec­ when he appeared before our committee, production potential. ord of the Republican administration, whi_ch testified that the Small Business Admin­ Furthermore, defense contracts are now has allowed giant corporate organizaUons istration did not support the bill but deferred being let largely by negotiation rather than to dominate our economy, with the record to the views of the Attorney General who was by competitive bidding. The Democratic of the Democratic 84th Congress. For exam­ opposed. But Mr. Barnes admitted to our platform is emphatic on this score-it favors ple, the 84th Congress enacted the O'Ma­ committee that he did not even understand the award of a substantially higher propor­ honey-Celler bill to give the 40,000 auto­ the bill. As chairman of the Judiciary Com­ tion of Government contracts to independent mobile dealers of this Nation economic mittee of the House I have rarely resorted small businesses and, particularly, the award freedom. These dealers had found that they to admonishing a witness. In this instance, of a far larger percentage of military pro­ were incapable of asserting their rights however, I felt compelled to tell Mr. Barnes: curement, by value, t]J.rough competitive bidding procedures rather than by neaotia- against General Motors, Ford, and Chrysler. "In all fairness, I will say this: I think 0 Did the administration request this leg­ you ought to exercise independence, but you tion behind closed doors. islation? Did it exercise any effort to have should correlate your opinion, as far as Beyond that, I believe that the present it passed? . practicable, with the views of small busi­ corporate income tax structure discrimi­ The fact is that the Eisenhower admin­ ness • • • First, you run athwart the views nates against new and small business and istration refused to recognize the plight of small business, and you have given us restricts the internal financing necessary for of the automobile dealers. Indeed, Secre­ . nothing except a bare conclusion, sort of a growth of small firms much more severely tary of Commerce Sinclair Weeks, along with self-serving declaration, that small business than that of large corporations. Our excise General Motors and Ford, spearheaded the is wrong • • * I do not think you have tax structure also bears more heavily on the opposition to any attempt to enact cor­ analyzed this bill very carefully and com­ small company. Therefore, it is time to con­ rective legislation which would protect the prehensively • • • I think you render your sider changes in our overall tax policies dealer against manufacturer coercion and administration a disservice by this kind of a whic~ now pen.alize small business and pre­ intimidation. statement* * • Yours is the Small Business vent its expansion, while promoting concen­ True, President Eisenhower signed the bill, Administration. Now I do not say this bill tration and the increase of economic power but only with the greatest reluctance and should be passed right out of hand because in the hands of a few corporations. In other misgivings. And in keeping with Republi­ some small-business organization wants it. words, I believe that as a corollary to our can dogma Mr. Eisenhower implied that • • • We ask you to give us help; but we traditional policy in the antitrust field, we the bill was an intrusion by the Govern­ get no help from you." need a policy which recognizes the impact ment into private enterprise. He said the The equality of opportunity bill passed of taxes on the competitive structure. bill probably should be replaced or repealed · the House with only three dissenting votes. Time does not permit a discussion of the by the next Congress. The Democratic However, in the Senate, several Republican fiscal activities of this administration which Party pledges that this law shall be retained Senators coordinated their efforts to fili­ have placed small business in a credit upon the statute books as a monument to buster the bill in committee. And in a squeeze. Here as in the field of tax relief, its concern for small business. familiar exhibition of team play, Senator it is crystal clear that the hard-money poli­ The Democratic Congress also endeavored BRICKER succeeded in blocking last minute cies have been and are being shaped on the to close the loophole in the Robinson-Pat­ consideration of the measure by the full basis of the trickle-down theory. man antiprice discrimination act created . Senate. despite the strenuous efforts of its I am aware that the panacea for all the by a Supreme Court interpretation. Under supporters on the Democratic side to get by problems that beset small business is now the Court's interpretation a price discrim­ · this roadblock. . supposed to be contained in the so-called ination, regardless of its effect on competi­ The result is that the small business pro­ progress report of the administration's Cab­ tion, was immune from prosecution if made ponents have been frustrated in their e!­ inet Committee on Small Business. This in good faith. As a result, small buyers . forts to eliminate the harassments of price document issued about 2 months ago, on were subjected to many of the same com­ · discrimination from the national scene and August 7, immediately after Congress ad­ petitive disadvantages as existed prior to must begin all over again at the next session journed,' is replete with self-serving state­ the passage of the Robinson-Patman Act of Congress. ments and promises for relief for small busi­ in 1936. . The equality of opportunity bills were Let me also make brief reference to several ness. Unfortunately this document is just designed to prohibit all price discriminations other policy areas where small business has so much campaign propaganda. There was substantially affecting competition or tend­ been shunted aside. ample opportunity for this administration ing to create a monopoly, whether or mit good Take military procurement. There is no to take prompt and effective action on be­ faith was involved. doubt that policies adopted by the top offi­ half of small business during the last 3 Yi Virtually every small-business organization cials of this administration in this field have years. The device of a so-called progress wanted this legislation passed. But again favored General Motors and other large report fools no one.

and because of the terror visited by cruel THE JOURNAL· SENATE masters upon those whose only crime is On request of Mr. JOHNSON of Texas, the desire to be rid of their chains. and by unanimous consent, the Journal MONDAY, JANUARY 14, 1957 Stretch out wide horizons for our vision o:f the proceedings of Thursday, Janu­ · and illumine for us the fairer earth of (Legislative day of Thursday, January 3, ary 10, 1957, was approved, and its the redemption when at last the wilder­ reading was dispens€:d with. 1957) . ness will blossom as the rose. For light enough to walk by through The Senate met at 12 o'clock meridian, . perplexing days, for inner strength to MESSAGES FROM THE PRESIDENT on the expiration of the recess. . carry heavy burdens, for uncompromised The Chaplain, Rev. Frederick Brown Messages in writing from the Presi­ Harris, D. D., offered the following courage to dare policies with no partisan dent of the United States submitting prayer: advantage, for eyes to see the truth, and nominations were communicated to the for the will to follow it fearlessly, we Senate by Mr. Miller, one of his sec­ Eternal Father, amid the narkness in · pray to Thee, who alone art our refuge retaries. which our sad and mad world lieth,.where and our strength. Breathe upon us now entrenched hatred and tyranny contend in this quiet moment Thy benediction, with good will and decency for the · that we may march on as valiant pil­ REPORT OF NATIONAL ECIENCE mastery, m:;:i,y we still believe in the grims, sustained by the confident assur­ FOUNDATION-MESSAGE FROM purple splendor of the dawning and that ance that the king'doms of this world THE PRESIDENT CH. DOC. NO. 49) the morning of a better day cometh . . Re­ shall yet become the kingdom of Thy The -VICE PRESIDENT laid before the plenish with new hope all who are dis­ radiant love. Senate the following message from the couraged about the sorry state of the We ask it in the dear Redeemer's President of the United States, which world because of today's harvest of evil name. Amen. was read and, with the accompanying