September 18, 1967 CONGRESSIONAL RECORD - SENATE 25881 The following-named first lieutenant (tem­ Owen V. Gallentine Theodore E. Metzger John B. Sims McDonald D. Tweed porary) for reappointment as chief warrant John R. Gill Bruce F. Meyers Robert L. Simmons Edmund Valdes officer (W-2) and first lieutenant (tempo­ William F. Goggin Alexander L. Michaux, Anthony J. SkotnickiJo M. VanMeter rary) in the Regular Marine Corps, subject Eugene V. Goldston Jr. James A. Sloan William M. VanZuyen to the qualifications therefor as provided by Willis L. Gore John Misiewicz William L. Smith Francis W. Vaught law: Paul B. Haigwood Clarence G. Moody, Jr. Michael M. Spark Ewald A. Vomorde, Jr. Williams, John C. Donald L. Hall Henry H. Morgan Paul G. Stavridis William W. Wander, The following-named first lieutenant (tem­ Robert T. Hanifl.n, Jr. Robert J. Morrison Bernard J. Stender Jr. porary) for appointment in the Regular Ma­ Frank W. Harris III Charles R. Munn, Jr. Grover S. Stewart, Jr. Warren C. Watson rine Corps, subject to the qualifications Howard H. Harris Theodore Nahow William W. Storm IIIHoward A. Westphall Neal E. Heffernan William L. Nelson Lewis C. Street III James A. Weizenegger therefor as provided by law: Charles H. Sullivan Edward A. Wilcox Dilley, George W. Joseph S. Heitzler Cleon E. Nesbitt Clayton V. Hendricks Robert L. Nichols John B. Sullivan Herbert L. Wilkerson The following-named officers of the Marfoe Thomas J. Holt Lawrence C. Norton David G. Swinford Lynn F. Williams Corps for temporary appeintment to the Hardy V. Huffstutter, William R. Nowadnick Samuel Taub, Jr. Alexander Wilson grade of colonel subject to qualification Jr. John P. O'Connell Alfred C. Taves Robert R. Wilson therefor as provided by law: Richard D. Humphreys Verne L. Oliver Alfred I. Thomas Frederick S. Wood William C. Airheart David A. Clement Clyde W. Hunter Lavern J. Oltmer Robert J. Thomas Robert J. Zitnik Leland G. Alexander Albert E. Coffeen Kenneth E. Hunting-Francis C. Opeka Lyle V. Tope Bennett W. Alford Donald Conroy ton Kenny C. Palmer The following-named officer of the Marine George A. Babe Wilson L. Cook Alfred L. Ingram Edward A. Parnell Corps for temporary appointment to the Edward A. Bailey Ralph K. Culver Manning T. Jannell Harold L. Parsons grade of captain subject to qualification Lonnie P. Baites Curtis A. James, Jr. Clyde R. Jarrett Robert J. Perrich therefor as provided by law: Robert E. Barde John A. Daskalakis Clark V. Judge Philip G. Pickett Thomas H. Meurer James B. Barrett Rex A. Deasy Gene S. Keller Robert M. Platt The following-named officers of the Marine Leroy C. Barton John R. Debarr Gordon H. Keller, Jr. Arthur J. Poillon Corps for temporary appointment to the Samuel G. Beal William E. Deeds Joseph J. Kelly Albert c. Pommerenk Van D. Bell, Jr. Earl R. Delong William E. Kerrigan Herbert Preston, Jr. grade of first lieutenant subject to qualifica­ Nalton M. Bennett Donald R. Dempster John W. Kirkland James R. Priddy tion therefor as provided by law: Ernest J. Berger Frank R. Denormandie Lee A. Kirstein Richards. Rash Richard A. Bircher Earl A. Kruger Rocco D. Bianchi John H. Doering, Jr. Harrol Kiser Charles B. Redman Patrick C. Blackman Robert E. Lavender W11liam Biehl, Jr. Walter E. Domina Victor A. Kleber, Jr. Ernest R. Reid, Jr. David W. Blizzard Robert E. Logan, Jr. Kenneth R. Bland Michael J. Dunbar Joseph Koler, Jr. James H. Reid, Jr. James R. Bohlig James G. Magee Clarence W. Boyd, Jr. William F. Dyroff Paul D. Lafond Knowlton P. Rice Jay F. Boswell James F. McCool III Ralph F. Brandel Thomas G. Elder Charles F. Langley Dayton Robinson, Jr. Thomas A. Braaten David L. Mix George R. Brier Ralph F. Estey Charles R. Larouche Glenn W. Rodney David L. Brown Thomas M. Moorman Norris C. Broome Harold W. Evans, Jr. John H. Lauck Horton E. Roeder Phillip G. Burke James H. Nelson Williams P. Brown Don D. Ezell Edward H. Lynk Edward R. Rogal John D. Burrill Frank A. O'Brein III Thomas W. Burke William Farrell Burton L. Lucas, Jr. Maurice Rose Albert J. Cornier Andrew D. Reistetter Charles R. Burroughs Clayton C. F'enton, Jr. Charles H. Ludden Richard A. Savage William M. Eaton James S. Richardson Jack H. Butler Kenneth G. Fiegener John H. Maloney Clarence H. Schmid George S. Ford John A. Sawyer, Jr. Robert W. Calvert Henry Fischer, Jr. Lyle B. Matthews, Jr. John L. Schwartz Edward Hatton III Philip M. Scherer Edward E. Camporini Joseph R. Fisher Nell B. Mills Charles M. See James R. Hughes Robert J. Short, Jr. Stanley H. Carpenter Sidney Fisher Roger A. Morris Thomas C. Shanahan Thomas A. Kenne James 0. Singer Thomas P. Casey Robert A. Foyle Alden McBarron Lemuel C. Shepherd Dennis D. King Thomas D. Sizemore Earl W. Cassidy, Sr. Freddie L. Franzman Kenneth McLennan III Donald E. Koppen- Norman S. Stahl Fred D. Chapman Steve Furimsky, Jr. Clyde R. Mann Robert L. Shuford haver Sidney S. Wade, Jr.

EXTENSIONS OF REMARKS Who'll Pick Up the Tab? should be deferred. The fact of the mat­ elude a previous public service television ter is that we are getting too much lip­ and radio newscast, "The Kee Report." service in some quarters and not enough The subject discussed in this report is EXTENSION OF REMARKS the small business establishments and OF action where it really counts. The only way we are ever going to reduce expend­ how the Small Business Administration HON. HAROLD R. COLLIER itures is to call the various department gives them the financial and business OF ILLINOIS heads in and determine which programs management assistance they need. IN THE HOUSE OF REPRESENTATIVES can be deferred and just let some of these This is Jim Kee--bringing you the Kee nonpriority things wait as long as neces­ Report. Monday, September 18, 1967 sary to get our fiscal situation back in The American economy is now pouring out order. The alternative is to expect the goods and services at a rate never before Mr. COLLIER. Mr. Speaker, now that seen on this earth. Because our economic the U.S. Government's fiscal situation is American taxpayer to foot the bill on life is so productive, it is under constant in such a mess that the Congress is being any programs that John Q. Public would study by other nations, including the Com­ begged to increase taxes and there is oppose if he ever had the opportunity munist powers which still cannot produce belated talk of cutting unnecessary to do so and since he does not, it seems enough to meet their basic needs. spending, it seems to me that there are to me that Members of this body have The efficiency of the big corporation is a many areas where one program after a responsibility to occasionally act in major factor in the story of our economic another can be deferred if the heads of the interest of those people who are growth. The industrial giants of America are the marvels of the age. They can produce the agencies are in any manner con­ called upon to pay the tab. more automobiles, more television sets, and cerned with our fiscal plight. more of everything else than their rivals Last July, the Department of Health, abroad and still keep the price within the Education, and Welfare announced that range of the average pocketbook. 38 elementary and secondary school ad­ The Kee Report: Small Business A few big corporations in the United ministrators will receive $95,000 in States do more business each year than the awards from the U.S. Office of Education EXTENSION OF REMARKS majority of countries in the United Nations. to attend a 4-week seminar and 2 addi­ Quite obviously, it is in the national inter­ OF est to keep these big combines healthy and tional weeks of junketing in a second prosperous. country which has not even been desig­ HON. JAMES KEE However, it would be a mistake to assume nated as yet. I understand that three OF WEST VIRGINIA that the nation's economic health depends such projects have been planned. IN THE HOUSE OF REPRESENTATIVES solely upon the big corporations. You may Even though part of these funds are Monday, September 18, 1967 be surprised to know that more than ninety­ presumed to come from excess foreign five percent of all business concerns in the currencies under Public LS!W 83-480, Mr. KEE. Mr. Speaker, under leave to United States are small in size and inde­ this is the kind of thing that can and extend my remarks in the RECORD, I in- pendently owned and operated. These small 25882 CONGRESSIONAL RECORD - SENATE Septernber 18, 1967 concerns employ more than forty percent to be an enthusiastic seeker after more They are joining with us in making the of the nation's labor force. In other words, knowledge. American people aware of developments in the butcher the baker and the corner His presentation last Friday was an the field of foreign trade during the past 20 grocer are ju~t as important to the nation's years. They are helping point out that our well-being as they ever were. outstanding one, and it is with pleasure domestic and economic policy has been re­ Several years ago, Congress established that I include it at this point in the shaped in such a way as to do injury to the the Small Business Administration for the RECORD: economic hopes and ambitions of the Amer­ express purpose of helping both the man ADDRESS BY BASil.. L. WHITENER, MEMBER OF ican people. who wanted to go into business for himself CONGRESS, BEFORE 42D ANNUAL CONVENTION, We are all properly alarmed that our ex­ and the man who wanted to stay in COMBED YARN SPINNERS ASSOCIATION, ports of manufactured products have been business. SEPTEMBER 15, 1967 decreasing as imports have made an alarm­ Financial aid is the thing most needed by I am honored to participate in this final ing growth in volume. Let me mustrate by the independent operator. He may need convention of the Combed Yarn Spinners briefly reciting statistioal data relating to $5,000 or $10,000 to meet current expenses Association. This is an historic occasion in facets of our industrial situation. or he may need that sum to finance plant the annals of the textile industry since it {a) Between 1950 and 1965 the number expansion. marks the beginning of the American Spin­ of nations producing commercial steel grew The Small Business Administration is ners Association, an organization which will from 32 to 65 nations. In that period the authorized to lend government funds when combine the talents of those primarily inter­ volume of world export of steel more than the conditions warrant. These Federal loans ested in the carded yarn field with yours. doubled, going from 23 million tons in 1955 have kept thousands of owners 1n business. I am proud of my textile heritage. Through to 51 million tons in 1965. Of this new for­ But, direct loaning is only a part of the fi­ this heritage, I have developed an abiding eign steel production, 20% of it has come nancial assistance rendered by the Small interest in the industry and its service to its into the United States, notwithstanding the Business Administration. This agency has es­ employees and the economic welfare of our fact th.at our own steel mills have the ca­ tablished a fine working relationship with nation. pacity to supply a.II of our needs. the banking community in every part of The Southeastern region-and the State {b) Foreign shoe manufacturers are now our country. As a result, about one-third of of North Carolina particularly-is depend­ shipping into this country 23 % of our total the loans now under review involve local ent upon a dynamic and :thriving te:xitile domestic produotion of shoes, causing the financing. In other words, the small business economy for its economic well-being. The loss of thousands of jobs ito American shoe man is being taught how to take care of his weekly wages of thousands of textiles em­ workers. financial needs in his own community. ployees constitute the warp and woof of {c) Within .the past 10 years we have seen In addition, the Sm.all Business Adminis­ prosperity for our merchants, professional ,the importation of rugs in 1this country in tration keeps a sharp eye out ·to see thait in­ such volume as to now command 70% of the men, and related businesses. American market. dependent operators are given a share in the As an example of the importance of the government procurement program. These industry to our region, we note that in North {d) In 1957 only 4.2% of foreign-made government contracts often give an economic Carolina alone our textile plants are capi­ athletic goods were shipped into the United life to the entire business community. talized at more than $1.18 billion. This figure States. 84% of our domestic athletic goods The Small Business Administration has does not include the capitalization of hosiery market in 1966 was supplied by foreign-made also found a way to provide individual coun­ and garment plants. Textile properties have products. seling for the merchant or shopkeeper on the an assessed valuation of $983 million result­ Many other examples of this dramatic and best way to run his business. This program devastating invasion of the American market ·ing in millions of dollars in tax revenues to could be given. is called SCORE. This is a corps of retired our state and local units. Tarheel textile executives who have the experience and the workers earn more than $1 billion per an­ This rapid depletion of American indus­ know-how to give sound advice on business num out of a total payroll in North Caro­ trial opportunity commenced with the Recip­ management. There are three thousand of lina of $2.5 billion for all workers. rocal Trade Agreements Act of 1934 when these retired executives who perform this The record shows that the volume of trade the Congress surrendered to the executive service 1n their home communities without agencies the regulation of international of the textile industry with some other in­ trade. With each passing year, these admin­ compensation. dustries is as follows: The Small Business Administration is doing $100 million with the trucking industry, istrative agencies have played a heavier role a good job of keeping independent opera­ in trade policy. $240 million with the paper industry, $150 In my judgment, there will be no ap­ tors sound and healthy. million with private power companies, $190 Thank you for listening. preciable relief for our American workers million with sheep ranchers, more than $1 and industries unless significant Congres­ billion with the cotton farmer, $2.4 billion sional action is taken. This action will be with the man-made fiber industry, $640 mil­ taken when the people of America are con­ lion with machinery manufacturers, $500 vinced that trade agreements must be based Representative Whitener Addresses million with the construction industry. on economic considerations rather than upon These are mere examples of the value international political considerations. The Combed Yarn Spinners Association of a vibrant textile industry to the economy record of no industry can equal that of the of our nation. textile industry in pointing out to our peo­ EXTENSION OF REMARKS When we add these contributions to our ple the dangers of foreign trade policies economic welfare and the fact that in the OF based primarily upon international polit­ United States $4.6 billion is paid out in wages ical considerations. to employees each year, we begin to realize Because of a foolhardy approach by per­ HON. JOHN J. FLYNT, JR. the essentiality of the preservation of the OF GEORGIA sons in our government we now find many industry. high officials in both the executive and legis­ IN THE HOUSE OF REPRESENTATIVES No organization has been more keenly lative branches asserting that the textile in­ Monday, September 18, 1967 aware of the necessity for growth and stabil­ dustry is expendable. Only last year in the ity in the textile industry than the Combed House of Representatives on:::i of my col­ Mr. FLYNT. Mr. Speaker, on Friday~ Yarn Spinners Association. You have made leagues, who was a delegate to the recent September 15, 1967, our colleague, the your voices heard. Those voices have been Kennedy Round negotiations in Geneva, Honorable BASIL L. WHITENER, delivered of great assistance to me as I have sought said: "It would seem to me that imports an address to the 42d annual convention to represent our area in the Congress of the could be substantially higher without dam­ United States. For that assistance I extend age to the domestic cotton textile industry." of the Combed Yarn Spinners Associa­ to you my sincere thanks. I express the hope tion at Sea Island, Ga. This same gentleman also advocated dis­ that you will continue to provide guidance continuing the Long Term Arrangement and During his entire service to date, Rep­ and counsel as we seek to protect the jobs called for stepped up activity on the part resentative WHITENER has been a recog­ of thousands of our fellow Americans who of the Congress to see that our government nized leader in the preparation of legis­ work in your plants. guarantee a larger share of the domestic lation which bears directly and indirectly Recent years have produced burdens for textile market to foreign countries. He fur­ on the interest and importance to the your industry which have made your busi­ ther advocated that developing cotton textile American textile industry. ness climate cloudy. These burdens resulted exporting countries should unite under the in great measure from unwise and unreal­ auspices of the United Nations and present His knowledge of this industry has istic government programs. Other basic a united front combatting those of us who been gained over a lifetime of close con­ American industries are now feeling the believe that we must have a more realistic tact and association with all segments of pinch of the same unrealistic government ac­ trade policy for our domestic industry. this industry and the persons who com­ tions. They are now joining hands with us These contentions are made in a glib man­ prise it in both employee and employer as we seek to find solutions for our problems. ner, notwithstanding the shocking statistics capacities. This is particularly true in connection which are available to these misguided per­ with the imports of excessive amounts of sons. They know, as you and I know, that He is an articulate spokesman on the foreign-made goods. These other industry in 1963 United States textile imports subject of this industry because he has a people are now joining with us in urging ef­ amounted to $646 million and that in 1965 basic knowledge of it and has continued fective import controls by our government. this figure had grown to $880 million. In September 18, 1967 CONGRESSIONAL RECORD - SENATE 25883 1966 t h e figure had risen to $1 billion 34 mittee to investigate all facets of East-West the 90th Congress. I know that you join in million of textile imports, a fact which trade. It was gratifying that within a few the hope that this relief will come promptly. seems to worry these free traders very little. days more than 100 members of the House As I conclude, I would like to bring to These same people know that Japan, Hong had introduced identical resolutions. your attention another legislative activity in Kong, Mexico, and India furnish more than It is expected that the House Rules Com­ which I am directly engaged. I believe that it half the United States textile imports and mittee will consider this resolution within has a direct impact on the economic well­ • are crying for a larger share of our market. the next few days. If this resolution is ap­ being of the domestic textile industry and I know that you join me in being alarmed proved by the Congress, I believe that these­ many other business sectors. This activity that in 1966 we only shipped to Japan lect committee can render a great public has gone on for 7 years as I served as a mem­ $4,040,000 worth of man-made fiber and service in making available to the nation all ber of a special subcommittee to study state fabrics, while at the same time the Japanese of the facts surrounding the subject of trade taxation of interstate transactions. manufacturers shipped in $161,510,000 worth with communist nations and their satellites. This long investigation clearly shows that of the same type products-a difference of Recently more than 100 members of the there are domestic trade barriers in the form $157 ,470,000. House and 61 members of the Senate have of state and local taxes which are similar to Most of the countries flooding our nation joined together in demanding Congressional some of the problems that we see in the field With cheaply-produced textile products action to further limit textile imports. We of foreign trade. These barriers are harmful have no reluctance to buildir.:;; barriers have said, in effect, that we have no faith to American business. They have come about against the entry of American textiles into in the negotiated import arrangements and in large measure because of conflicting court their countries. agreements made by executive agencies of decisions and the eagerness of local state tax A good example is Brazil. The United the government. administrators and legislators to impose States has furnished vast amounts of money We were all delighted that Congressman heavy burdens on out-of-state business orga­ in economic assistance and trade conces­ Wilbur Mills, Chairman of the House Ways nizations doing business within their states. sions to that country and has permitted it and Means Committee, which has jurisdic­ We were told by reputable businessmen to furnish 6 % of all of our textile imports tion over foreign trade legislation, has agreed that many industries find it easier to locate while we purchase 31 % of its total coffee to be the principal author of this legislation in foreign countries and market their prod­ production. and is joining in the demand that a realistic ucts in the United States than to ship do­ When the American manufacturer seeks approach be substituted for present policies. mestically produced products across state to ship textiles to Brazil he is faced with If enacted into law, this legislation will lines. the requirement of an import license and bring about an equitable and orderly pro­ A legislative proposal, co-sponsored by after the license ls granted a 100% ad gram of textile trade in such a way as to members of our special subcommittee, is now valorem duty for cotton cloth and a 120% prevent market disruption, unemployment, awaiting debate on the Floor of the House ad valorem duty for synthetic fabrics. and foster a healthy climate for a strong of Representatives. It will be my responsi­ Colombia, another of our South American and growing domestic textile industry. bility to manage the debate when the bill is neighbors, has been the recipient of many The major cause for optimism for the called up. Unless we have the support of the favors from the United States. Yet they future of this legislative proposal is the fact bu&ines community, I apprehend that the also have a licensing system which makes it that the popular and able gentleman from b111 is in jeopardy because of the bitter op­ virtually impossible to do business in their Arkansas, Congressman Mills, has agreed to position of the several state tax administra­ country. lead the fight. His sponsorship of the legisla­ tors who do not want their playhouse Mexico has a similar policy. In those two tion will be most persuasive to many of our disturbed. countries, tariff duties may range from 100% colleagues. Briefly stated, the legislation would per­ ad valorem on denims to nearly 300 % on Another legislative proposal, which has not mit a small company in one state to do busi­ synthetic fabrics. These are not isolated received great publicity, has been sponsored ness with other states without burdensome examples. The same conditions apply in by Congressman John Dent of Pennsylvania. and capricious regulation by the taxing au­ many other countries of the world where It results from 2 years of investigations and thorities in states where the company has we seek to do business. Their ideas of hearings by Mr. Dent and his subcommit­ no local property and no local employee. reciprocity are bizarre, to say the least. tee. They have studied the impact of imports The data collected by our subcommittee The evil results of this strange approach to of all types upon domestic employment op­ during our long study indicates that the international trade are not confined to the portunities. bill would not significantly affect the amount textile industry. They are nationwide in their The Dent bill, which has been reported of revenue collected by any state. On the scope. When we consider that the balance of favorably by the House Committee on Edu­ contrary, we believe that it would in the payments deficit is in large measure attrib­ cation and Labor, proposes substantial cur­ long run bring about an increase in revenues utable to textile imports, we realize that it tailment of imports when a finding ls made because of accelerated business activity. is not just a local or limited problem. We that such imports deprive Americans of jobs In our own State of North Carolina much have seen our gold reserves go from $23 bil­ and job opportunities. The bill would take misinformation has been dispensed by those lion 252 million in 1952 to $10 billion 93 mil­ the matter out of the hands of those bureau­ who would confuse the issue. I urge that lion in 1966. crats who heretofore have been so blind to each of you carefully consider the merits of This trend wm continue unless there is an the loss of employment resulting from ex­ the legislation and urge your own Represent­ immediaite change in our national approach cessive imports. atives il.n the Congress to support it. in world trade. Textile imports represent ap­ The Dent proposal is a sound approach to It has been a pleasure to be with you at proximately one-half of the total volume of the problem and deserves the support of the your great convention. I commend you for our annual balance of payments deficit at textile industry and all Americans who are the zeal that you have for providing greater this moment. In the light of this fact it is interested in the preservation of a vibrant employment opportunities for our people inconceivable to me that any American could economy. through an expanded and healthy textile fail to demand a return to sanity in our trade Another heartening development in recent industry. Your leadership is essential for the policies. months has been the accelerated interest of economic health of our nation. For 16 years we have experienced a deficit labor, industry, and agricultural organiza­ •Those of us who have been raised in the in our international accounts in each fiscal tions in bringing about textile import con­ mills and in communities where the textile year, with one exception. How long can we trols. Just a few days ago the National Cot­ industry has provided so much leadership continue such practices? ton Council went on record in favor of are grateful to you. Many of us are also concerned with the greater controls on imports of textile prod­ As you merge into the American Spinners fact that practically every foreign country ucts. Association, I wish you every success and shipping textiles into the Unirted States has At about the same time the United Textile urge that you continue your zeal for a better a flourishing trade with our communist Workers Union of America stated to the America. enemies. President of the United States its dissatis­ In 1965 our nation did almost $300 m1llion faction with the Kennedy Round negotia­ in trade with communist and satemte na­ tions as they affected textiles. The Union UMATT: A Flying Peace Corps Which tions. During this same period trade between stated to the President: "We do not believe some of our so-called friends and communist our present foreign trade policy is achieving Deserves Our Encouragement and satemte nations amounted to $15.8 bil­ the purpose it was supposed to achieve. lion. Thus, we see that we are affording to There has been no appreciable rise in the EXTENSION OF REMARKS nations engaged in active trading with our living standards of the people of those coun­ OF communist enemies a virtual open textile tries which are the major beneficiaries of our market in the United States while we send present policy." HON. CHARLES W. WHALEN, JR. to them our foreign aid dollars. It might well have been added that unless The question of East-West trade is now sensible policies are immediately instituted OF OHIO commanding the attention of many American the living standard of our American textlle IN THE HOUSE OF REPRESENTATIVES people. They are demanding thrut the United workers w111 be seriously lowered. Monday, September 18, 1967 States' policies be reexamined quickly. This heightened activity in behalf of the On August 1, 1967, I introduced 1n the domestic textile industry on so many fronts Mr. WHALEN. Mr. Speaker, I would House of Representatives a resolution call­ gives us reason for the conclusion that af­ like to apprise the Members of the House ing for the establishment of a select com- firmative action will be forthcoming during of Representatives of a highly commend- 25884 CONGRESSIONAL RECORD- SENATE September 18, 1967 able and noteworthy humanitarian effort for our country. Last week we had just national importance. This is so whether being conducted by the United Missions such a lesson and it was a good one; and, it comes from a Rhodes scholar or from Air Training and Transport, Inc. political personalities aside, it is one we the peacenik demonstrator. And, if we UMATT, a nonprofit Ohio corporation, all should note seriously and objec­ fail to support our boys in Vietnam with is in reality a flying peace corps. It tively. I refer, of course, to the Detroit the necessary money and implements of operates a fleet of six American light News' Romney editorial-with special war, even if it does require an increase planes over an area of one million square emphasis on its Vietnam treatment. The in taxes, we might well betray our boys miles encompassing underdeveloped editorial represented a clean break with in Vietnam more than the peaceniks and countries in East Africa. a man that the paper had always sup­ the fancy-talking doves. The organization is nondenomina­ ported and the excruciating circum­ Our President certainly deserves and tional, makes no charge for its assistance stances of the News' decision add great will receive the overwhelming support of and has pledged itself, as stated in its credence, I think, to the validity of the the Congress and the people in all mat­ articles of incorporation, "to distribute editorial's judgment. Its reference to ters of vital national concern. He will assistance without respect to social, re­ Vietnam is important because, I am con­ receive this because he is our President ligious and geographic difference accord­ fident, it speaks the voice of America. just as President Eisenhower received it ing to the principles of the dignity of As I see it, Mr. Speaker, the meat of when he was our President. But to us man and his needs as a fellow human the editorial is simple and direct-when who are Democrats, the present Presi­ being." our country is in trouble and its course dent is our President in a special sense In addition to rendering humanitarian is committed, whether we agree with the and should have the support of all Demo­ assistance, UMA TT also is engaged in "whys and wheres"-which I do--every crats in a special way. And, make no helping these people to help themselves American should stand with his coun­ mistake about it, he will be our candidate by teaching them the use of one of the try and behind the boys who are fighting for President in 1968. Whether many marvels of our technical age, the air­ and dying for the cause. The Detroit Democrats return to the Congress will plane. News put it directly: depend to a considerable extent on how UMATT outlined this goal also in its This newspaper believes ... we cannot re­ well Americans throughout the country incorporaition statement: treat from Vietnam without betraying those understand and appreciate the problems To render material assistance to all priva;te who have died there in the belief tha.t Amer­ confronting him and the Nation. and public humanitarian agencies, and to all ica's pledges will be redeemed. Mr. Speaker, I hope that we all can such agencies, or other groups or govern­ close ranks and respond to our Nation's ments interested in establishing aviation When I first came to Congress some training facilities, air transport support op­ 10 years ago, I saw a similar lesson in call in its hour of need; for those who er.aitions, aerial distribution of chemicals for Americanism under similar circum­ do not, the record will be clear-their agricultural or public health purposes, disas­ stances under a different President. As country was in need, and they were ab­ ter relief and any and all peaceful uses for a freshman Congressman in 1957, the sent; they were not there. aircraft. first vote I was called upon to cast in To provide a continuing source of infor­ January of that year was in support of mation on utilitarian aviation and to ini­ President Eisenhower in the very grave tiate .and to support technical and economic studies looking toward more efficient and Mideast crisis. The matter involved a And the Rockets Red Glare, the Bombs ever expanding application of aircraft in the real danger of a direct confrontation Bursting in Air sector of humanitarian interest. with So·viet Russia; and, then as now, there was considerable doubt among the UMA TT has made possible greater Members of Congress as to what course EXTENSION OF REMARKS utilization of professional volunteers in this country should take. But the doubts OF East Africa by increasing their mobility were soon resolved. and availability. This has been true in HON. HAROLD R. COLLIER Under the driving leadership of House OF ll.LINOIS the cases of medical doctors, educators Speaker Sam Rayburn and Senate and agricultural experts. In many cases, Majority Leader Lyndon Johnson to­ IN THE HOUSE OF REPRESENTATIVES lives have been saved through the serv­ gether with House Majority Leader John Monday, September 18, 1967 ice of UMATT's aircraft. Schools in cer­ McCormack, it was made instantly clear tain localities exist only because of the Mr. COLLIER. Mr. Speaker, last to the Nation and the world that the Thursday marked the 153d anniversary unique ability of the aircraft to keep country was in trouble and the Demo. them supplied. of our national anthem, the ''Star-Span­ Through this people-to-people pro­ cratic Congress would stand firmly be­ gled Banner." It was on September 14 in hind our President. That the President 1814 that Francis Scott Key, a George­ gram of foreign aid, the cause of friendly happened to be of the opposite political relations and the betterment of human­ town, District of Columbia lawyer, wrote party had no bearing on the matter. That the thrilling words for this patriotic song. ity has been served. was as it should be then and is as it It is significant to mention also that Key was inspired to pen his immortal one African government has requested should be now. lines while witnessing the bombardment UMATT to establish an air training pro­ In this connection, I recall a group of Fort McHenry in Baltimore. One of his gram capable of training 3,000 young calling itself the Democratic Advisory friends, a physician of Upper Marlbor­ people. Council, or some such, attempted to pre­ ough, Md., had been seized by the British Mr. Speaker, efforts of this kind reaf­ vail upon Mr. Rayburn and Senator for interfering with their ground troops­ firm the commitment of Americans to Johnson to join them as a "clearing­ this was during the war of 1812. Armed our fellow man. UMATT certainly is to house" for legislation to be approved by with a note from President James Madi­ be congratulated for its work and de­ the Democratic Congress. Messrs. Ray­ son, Key went to the :fleet under a flag of serves our encouragement. burn and Johnson declined the invita­ truce to ask for the doctor's release. Ad­ tion, and their comments were and are miral Cockburn, who was in charge of unprintable. the British squadron, assented to the re­ Clearly, the lesson is-for good or bad quest, but circumstances were such that Americanism we stay with our Government. It was so the lawyer and his friend were both de­ 10 years ago; it is so now; and, it will be layed in their return to friendlier soil. so 10 years hence and as long as there is EXTENSION OF REMARKS The British fleet was about to sail up an America. the Patapsco River to bombard the fort, OF And while we are on the subject of so Key was detained for the duration of HON. JOHN YOUNG Americanism and patriotism, it might be the attack, which started at 7 in the OF TEXAS well to note that the draft-carcf'burners morning of September 13. It lasted, with and the flag desecraters are not our only intermissions, for 25 hours. Although the IN THE HOUSE OF REPRESENTATIVES problem. Our :flag can be desecrated and enemy fired over 1,500 shells, each weigh­ Monday, September 18, 1967 our national purpose dishonored just as ing as much as 220 pounds, the British Mr. YOUNG. Mr. Speaker, good les­ effectively and sometimes more injuri­ were unable to approach closely because sons -in Americanism are important; ously, although more subtly, by citizens the Americans had sunk 22 vessels in the they are good for us and they are good of high education in positions of great channel. September 18, 1967 CONGRESSIONAL RECORD- SENATE 25885 During the bombardment Key wrote a Aerospace power in the nuclear age is ably helped the Job Corps achieve suc­ stanza of his poem on the back of an the decisive fact of life, or death, to be cess. WICS helps find, screen, and place envelope. He completed it the following candid about it. There is no doubt in my Job Corps girls. As the Vice President day at the Fountain Inn in Baltimore mind that the long years of duty provided pointed out, this important WICS ac­ and gave it to Judge Joseph Hooper Nich­ by the now-departed B-36 bomber, for tivity has a very salutory by-product: olson; Nicholson and Key had married example, which never fired a shot in Because of the direct involvement of thou­ sisters. The judge suggested the tune anger, persuaded any would-be aggres­ sands of women in this work, communities "Anacreon in Heaven" and had copies of sor that an attack on the United States all over the country are much more aware the new song printed. would result in his own destruction. I of the need to do something about young The song appeared in the Baltimore might add, parenthetically, that many of women in poverty. American of September 25. Key later the emergency war plan missions as­ The Vice President also reminded us made three additional copies; one is in signed to the B-36 aircrews during that of the progress being achieved by the the Library of Congress and another is time were understood to be one-way OEO's Job Corps program. As he said, owned by the Pennsylvania Historical trips. The men knew this and accepted it this continuing attempt "to recruit, train, Society. as part of the commitment they made, as and find employment for America's ne­ What became of The Star-Spangled volunteers, to their fellow citizens. glected youth will never be easy, but it is Banner? As we sit in this body today, thousands moving forward." In fact: The flag that inspired Key to write the of our airmen stand on round-the-clock The Job Corps centers are now successfully words for the song may be seen at the alert, day in and day out, both here and helping over 41,000 hard core poverty youth Smithsonian Institution here in the in foreign countries, to respond to any in 123 centers for men and women across the Nation's Capital. This flag, which is 30 attack against our country. Few of us Nation. by 42 feet, was made by Mary Young have much of an awareness of this fact. Pickersgill of Baltimore. It has 15 alter­ Fewer of us still have ever seen the I know my colleague's will be inter­ nate red and white stripes and 15 stars to bombers, fighters, and missiles only min­ ested in the full text of the Vice Presi­ represent the States that formed the utes and seconds away from launching. dent's letter. It follows: original United States, plus Vermont and They have never been employed in this (From the Minneapolis (Minn.) Star, Aug. Kentucky. During the intervening years, role and hopefully never will be. 22, 1967] the number of stars in our flag has in­ The absence of any direct attack HUMPHREY ON JOB CORPS creased with the number of States from against the United States testifies to the To the EDITOR: 15 to 50, while the number of stripes has effectiveness of this retaliatory force. The Minneapolis star article of July 31 been set permanently at 13 to represent And the security is reflected in a number outlines the arduous process of "reach out" of diverse ways. necessary to locate the hard core poverty only the states that formed the Union. girl. These are the disadvantaged, suspicious, The original copy of the song remained It has compelled the Soviet Union to rejected youth in whom must be engendered in the possession of the Nicholson family depend more on political and diplomatic the motivation to help themselves by volun­ until 1907, when it was bought by Henry initiatives than on outright military teering for the Job Corps. Their recruitment Walters of Baltimore. It was purchased force. This security also has contributed is not easy. But the situation is definitely at auction in New York City from the to the development of nationalistic improving. Walters estate in 1934 by the Walters Art movements by some of our allies, to the The Women in Community Service (WICS) Gallery, of Baltimore, for $26,400. The point of causing distress to our policy­ have pioneered a most difficult field of so­ gallery sold the manuscript in 1953 to makers. cial endeaver. There is reason for them and all Americans who would serve our disad­ the Maryland Historical Society for the This umbrella of retaliatory strength vantaged youth to be heartened. The Job same price, the money having been do­ further has had its effect on our own in­ Corps dropout rate is down: from 33 per nated by Mrs. Thomas Courtney Jenkins, ternal life. The fact that there is now cent who dropped out within 30 days in of Baltimore, in memory of her mother­ substantial debate and protest against 1966 to 21 per cent in 1967. The dropout rate in-law, Mrs. Catherine Key Jenkins, who war and weaponry indicates the viability for girls who stayed less than 30 days is only was a daughter of a first cousin of Fran­ of such basic American virtues as free­ 11 per cent in 1967. Job Corps youth are cis Scott Key. dom of speech and thought, all of this showing higher educational gains; 38 per cent completed senior and advanced training in ironically fostered to some degree by this 1966; 51 per cent in 1967. The WICS, in fol­ 22 years of security provided by an effec­ lowing up the girls they recruit, have pro­ The 20th Anniversary of the U.S. Air tive deterrent. vided guidelines to improve Job Corps oper­ Some residents of my district, center­ ation: permissiveness is out; a commitment Force ing on Dayton, Ohio, can remember the executed by parents and youth for a 180-day skepticism directed at the achievement stay at a center ha.s been instituted to EXTENSION OF REMARKS of two of their neighbors, Orville and alleviate the initial homesick dropout lass. OF Wilbur Wright, in developing the world's The cost of $7,000 a full year at a Job Corps first powered aircraft. But in the brief center compares favorably with the cost at HON. CHARLES W. WHALEN, JR. a university like Harvard. These univers,ity space of 60 years, their invention has costs stand over $10,000 when the contribu­ OF OHIO become a key factor in world power. tions from endowment and alumni gifts are IN THE HOUSE OF REPRESENTATIVES Our Air Force has served with distinc­ prorated per student for the 9-month aca­ Monday, September 18, 1967 tion in peace and war. I am conscious of demic year. Further, the Job Corps oost in­ the vital role these men play in our cludes clothing; travel; pay and allowances Mr. WHALEN. Mr. Speaker, the U.S. society and extend my tribute to them on for an enrollee's family; and the sometimes Air Force today marks its 20th anniver­ this auspicious occasion. extensive medical and dental care these sary as a separate service. poverty youth require. I would like to take this opportunity The struggle so graphically related in the to express my congratulations to our air­ Star are the growing pains of a new venture to provide in Job Corps centers what is prob­ men on this occasion. I know I speak for A Tribute to WICS ably a last chance for America's disadvan­ all of us in reaffirming our respect and taged yourth. esteem for the defense these men render EXTENSION OF REMARKS The Job Corps mission to recruit, train, and the Nation. OF find employment for America's neglected The Air Force literally has provided a youth will never be easy, but it is moving shield of safety under which the United HON. DONALD M. FRASER forward. The Job Corps centers are now suc­ States, since the end of World War II, OF MINNESOTA cessfully helping over 41,000 ha.rd core pov­ erty youth in 123 centers for men and women has been able to pursue the goals of peace IN THE HOUSE OF REPRESENTATIVES and a better life, both here and in the across the nation. The volunteer assistance Monday, September 18, 1967 of WICS in recruiting disadvantaged girls world. for the Women's Centers is appreciated. We tend to take this fact for granted. Mr. FRASER. Mr. Speaker, in a recent WICS, representing 27,000,000 women But I think our Air Force men under­ letter to the Minneapolis Star, Vice Pres­ across the country, not only screen and re­ stand this and perhaps it is as it should ident HUMPHREY paid well-earned trib­ cruit, but also utilize community resources be. We are not m111tarlly powerful so ute to the Women in Community Serv­ for girls who do not qualify or a.re unable to much by choice as by necessity. ice-WICS-who have so willingly and take the step to leave home. Because of the 25886 CONGRESSIONAL RECORD - SENATE September 18, 1967 direct involvement of thousands of women in morality is declining. The responsibility that Respect for law and order begins at home. this work, communities all over the coun­ this Nation has shown, in meeting its human Ch ildren must learn it and must be taught try are much more aware of the need to do obligations at home and abroad, convinces it from their parents. Your children learn something about young women in poverty. me that America is a Nation that is strong it from you-and by what you do and by As leaders in their towns and cities, WICS today, the example you set. That means that every have increased the awareness of others to In the second place, I do not believe that time we water the lawn when there is an this need and have sought to work out al­ sweeping indictments of our Nation's moral­ ordnance agaiinst it at a certain time of day, ternate solutions at the community level. ity wlll help us get at the solution of the the children learn their own lesson about Every young woman contacted by the real problems that affect morality-the prob­ respect for law and order-if we water the WICS benefits in some measure from their lems of poverty, the problems of disease, the grass the wrong time. concern and interest. problems of ignorance, or of international ag­ That means that every time a parent HUBERT H. HUMPHREY, gression, or of crime. Self-righteous indigna­ wr.ites a note to the teacher to ·discuss Mary's Vice President. tion is not a policy. It is a substitute for a or Johnny's absence from school when they WASHINGTON, D.C. policy. really don't need to be excused and are not What America needs is not more hand­ sick, they, the children, learn f~om the par­ wringing about crime in the streets. America ents the wrong lesson about respect for law needs a policy for action against crime in and respect for order. the streets--and for all the people of this The crimes that have most disturbed our President Johnson Delivers Hard-Hitting country to support that policy. people--homicides, robbery, physical assault, Speech at Kansas City Believing that, as I strongly do, I estab­ burglary, automobile theft and driving while lished in March 1965, the President's Colll­ intoxicated-are crimes against local and mission on Law Enforcement and Adminis­ state law. EXTENSION OF REMARKS tra tlon of Justice, I instructed and charged Those laws are made by the city councils OF this Commission to deal with the following and made by the state legislators. They must questions: be enforced by the police and the state HON. WILLIAM R. ANDERSON How can law enforcement be organized to patrol. Their perpetrators are tried in local OF TENNESSEE meet present needs? courts, by local citizens. They are sentenced IN THE HOUSE OF REPRESENTATIVES What steps can be taken to insure pro­ locally. They are prosecuted locally by tection of individual rights? judges-by prosecutors who are elected by Monday, September 18, 1967 Through what kinds of programs can the local people and by judges who are selected Mr. ANDERSON of Tennessee. Mr. Federal Government-of which I am a part­ by local people. be most effective in assisting and supplement­ They are returned to local communities Speaker, as all the Members are aware, ing, not supplanting, State. and local law when their sentence has been served-their President Johnson interrupted his sched­ enforcement? penalty paid. These local communities look ule last week in order to go to Kansas I asked the members that I carefully se­ upon their record and they are under the City to address the annual conference lected from throughout the Nation to con­ supervision of local authorities. of the International Association of Chiefs sider the problem of making our streets, Unlike most other countries, we--Amer­ of Police. On this occasion the President homes, and our places of business safer-and ica-have no national police force. It de­ spoke out most forcibly on the subject of to inquire into the special problems of ju­ sires none. Our founding fathers were very venile crime, to examine the administration careful to see that none was provided for. law and order. His speech was hard hit­ of justice in the lower courts-to explore the Why, today in this country our largest city ting, timely, and excellent. Furthermore, means by which organized crime can be ar­ has more police officers than the entire by this action the President paid a great rested by Federal and local authorities closely United States Government. One city has more tribute to the importance of our Nation's coordinating and cooperating together. police officers than the entire government of police. I was privileged to address this The Commission's report, rendered last the United States of America. same conference on Tuesday last on the winter, is a study of crime and a study of Officials in Washington just cannot patrol subject of my bill calling for a broad criminals. But it is much more than that. a neighborhood in the far west, or stop a program of Federal assistance for higher It is a systematic analysis of the strengths-­ burglary in the south, or prevent a riot in a as well as the weaknesses-in our American great metropolis. education of law enforcement and cor­ law enforcement. It is a prescription for ac­ In the end, then, the quality of the local rections personnel-H.R. 6628. The group tion-action-action at every level of gov­ police, the action of the local prosecutor, the the President spoke to constitutes the ernment, and it is a constructive guide for local grand juries, the fairness and the justice executive council of the law enforcement thoughtful citizens throughout this land in of the local courts, the effectiveness of the community in this Nation. It is a large, every walk of life. local correctional systems-all of this re­ influential, and intelligent body. You will Acting on its report, I urged the Congress sponsibility is lodged appropriately and prop­ not find a group anywhere more vigor­ this year to promptly act-promptly act-­ erly in the hands of local authoritles--of upon the most comprehensive Federal legis­ local citizens. ously taking steps to improve law en­ lation that has ever been devised to help They at the local level must decide how forcement capabilities and to meet the local authorities meet the problem of crime good they want their law enforcement in new challenge of the decade. at the local level in their cities. their local cities to be. Mr. Speaker, I warmly commend the That legislation was called the Safe Streets They must determine whether it is right-­ President for what he has done and, and Crime Control Act. It was based on the whether it ls just and whether it is falr­ under unanimous consent, I include his five fundamental principles of the Crime to ask a man to risk his life to protect their Kansas City speech in the RECORD: Commission Report: life for a salary that is lower than they pay First, that crime prevention is of para­ another man for working behind a desk or REMARKS OF THE PRESIDENT BEFORE THE INTER­ mount importance. standing on the assembly line in an indus­ NATIONAL ASSOCIATION OF CHIEFS OF POLICE, Second, that the system of justice must trial plant. KANSAS CITY, Mo., SEPTEMBER 14, 1967 itself be just. The system of justice must They must determine at the local level President Morris, Mayor Davis, Chief Law- itself be just and it must have the respect whether they want a court system that they rence, Mr. Tamm, Chief Kelley, ladies and as well as the cooperation of all of its citizens. sel•ect and provide for which delays justice gentlemen: There is an old story about Presi­ Third, better trained, better paid, and until justice is denied. dent Calvin Coolidge and his response to the better equipped people are desperately They must determine locally whether they question, "What do you think about sin?" needed throughout the land. want a correctional system that deals with As you may remember, President Coolidge Fourth, police and correctional agencies youthful offenders, not as lives to be re­ is supposed to have answered, "I'm against must have better information and deeper deemed, but as people who are doomed to it." and broader research into the causes, and clash repeatedly with the law. Most Americans would say the same thing into the prevention Mld control of crime. If they decide that they want something today about poverty, disease, and ignorance, Fifth, and last, substantially greater re­ better for their communities than what they and crime. sources such as more judges and prosecutors, are getting today, then we think that if they So I don't expect special credlt this and faster court action, more and better make this decision-and they can make it morning for coming before the International court personnel, more modern court admin­ today through their Congressmen and their .Association of Chiefs of Police to talk about istration-thus modernizing, improving Mld Senators supporting the recommendations crime and only say, "I'm against it." bringing the entire criminal justice system that the President has made--some of which It would not enlighten your discussions, up to date in the 20th Century. have been before the Congress many years­ nor contribute to public understanding, if I I did not propose that the Federal Gov­ then their national government can, should were to spend my time here in a long lament ernment take over the job of dealing with and will help them get it-not by taking about the evil consequences of crime. I think crime in American streets because from the over the system of law enforcement, but by they are as self-evident as they are real. birth of the Republic to the present moment helping them strengthen and reform it. Neither am I going to be content to just responsiblllty for keeping the peace 1n our That is what the safe Streets Act which I preach about decline in morality in America. cities has been squarely on the shoulders of recommended to the Congress would do. It In the first place, I just do not believe that local authorities. its spirit and 1f its purpose survive, it wlll September 18, 1967 CONGRESSIONAL RECORD - SENATE 25887 provide grants t.o those cities and to those ment. It spawned a group of men whose ·in­ Congress taking action to make our streets states who not only increase their present terest lay in provoking-in provoking­ safer-and taking action that will better commitment to criminal justice, but who are others to destruction, while they fled its promote civil peace-that we can take action Willing to go out and develop programs for consequences. for better schools and better playgrounds, better training, for better use of their per­ These wretched, vulgar men, these poison­ for more and better support of our churches sonnel, or for higher standards and innova­ ous propagandists, posed as spokesmen for and our spiritual leaders-for better housing tions such as tactical squads and community the underprivil·eged and capitalized on the and better homes, for better living of all relations units, and new techniques of re­ real grievances of suffering people. our people--which in the end will give us habilitation. And the vast majority of those people-the better citizens and a better and stronger It will help pay the salaries of those who vast majority of them-believe that obedi­ nation. operate these programs. It will help pay the ence to the law, in Abraham I.J.ncoln's phrase, It will make us all a happier and more salaries up to one-third of the grant which must be our religion here in America. guilt-free people. could be used to increase the pay of police­ They have seen the law change. They have I am sorry that I could not be with you the men and other criminal justice personnel seen it become more just as the years passed early part of your convention. I did very working With them. in our times. They have seen their rights much, though, want to come here and talk The key to this program is experiment, in­ more firmly established, their opportunities to you-and to salute you before you re­ novation-and better use of the most ad­ sharply increased in the last decade. turned to your respective homes and again vanced knowledge that we have gained in this They know that the law in a democratic assume command of this most responsible country of crime, its treatment, and its society is their refuge, and that lawless service that you are rendering and perform­ causes. In my opinion, every law enforcement violence is a trap for all those who engage ing this great duty that is yours. official in this country ought to welcome it in in it. We look to you to protect our families, our the spirit in which it is offered: as a prac­ We must redeem their faith in law. We homes, and our lives. You have a right to tical and imaginative tool for helping our law must make certain that law enforcement is look to your public servants, your political enforcement officers cope with crime in the fair and effective-that protection is afforded leaders, to see that your efforts are not for­ cities without in any way-in any way--dim­ every family, no matter where they live-­ gotten, are not ignored, are not put at the inishing either their responsibility or their that justice is swift and justice is blind to bottom of the priority list. authority. religion, color, status, and favoritism. I thought this morning by coming out Now to a matter that affects you and affects We cannot tolerate behavior that destroys here and visiting with you and telling you you much more than most of the citizens, what generations of men and women have some of the things that was in the heart and but in the end it will affect every single one built here in America-no matter what stim­ the head of your President, that perhaps we of us-it will reach into every home in this ulates that behavior, and no matter what is could awaken this nation to a responsibility land-and this is the gun sale law. A law to offered to try to justify it. that we are not assuming-to an obligation limit-a law to safeguard-the sale of guns Neither can we abide a double standard of that we are not discharging-to a job that has been before our Congress for several justice, based on the color of a man's skin the President and the Congress, the legisla­ years. or the accent of a man's speech. tors, and the city councils must face up to. Its passage would plug up one more big Those who wear the police officer's badge-­ I am ready to get on with my part of it. loophole to save your life, and mine, or the those who sit in judgment in the courts­ Thank you, very much. life of some innocent child down the street. those who prosecute in the chambers--those I hope it will pass. who manage our correctional institutions-­ Its purpose is simple--it is to keep lethal all of these have a very special responsibil­ weapons out of the wrong hands--out of the ity for the maintenance of order and the hands of dangerous criminals, out of the achievement of justice throughout the land. Federal-State Balance of Power To Be hands of drug addicts, out of the hands of But every single one of us--private citizen Maior Issue mentally ill people who really know not what and government official-shares some in that they do. responsibility. EXTENSION OF REMARKS Its baisic aim is t.o lim1t the out-of-state We can all say very easily, "We are against purchases and the interstate mall-order sale crime"-and then we can let it go at that. OF of firearms. We believe this is the most effec­ We can preach sermons, we can write edi­ tive way that the Federal Government has of torials, we can make speeches, and we can HON. ALBERT ff. QUIE protecting your safety and the safety of get our picture made talking about crime OF MINNESOTA your children from criminals, drug addicts, and moral behavior-we can think that we IN THE HOUSE OF REPRESENTATIVES and the mentally ill. have done our duty. If we want to curb crime-if we want t.o Or we can respect-we can encourage-all Monday, September 18, 1967 arrest crime--if we want to restrain of our citizenry to respect the law and to Mr. QUIE. Mr. Speaker, in my most criminals-here is an action that we can take respect those who protect us in the name of recent report to constituents, "Congress­ that will be a long step forward. the law. Let us not be content to bewail the rising We can be willing to pay the bill or im­ man Al Quie Reports," for August of crime rate or to talk about the statistics of proving the performance of our police, our 1967, I included a section titled: "The the numbers of repeaters who fill our mails courts, and our correctional institutions and Approaching Great Debate Over Federal­ and prisons while we turn our back and give them the salary, pay and equipment State Balance." ignore the fact that they can go to any that they need. We can insist on devoting The Red Wing, Minn., Daily Republi­ mail order house and get a weapon to shoot enough of our resources and enough of our can Eagle, reprinted the article on Sep­ your wife after they tear the door down at brainpower to meet the problem of crime­ tember 13, 1967. In the same edition the midnight. to make America safer and more just for all Daily Republican Eagle published an edi­ Let us act instead of talk against crime. Let of its citizens. us repair as many shattered lives as we can. I have always felt that we could make torial titled "Housing Frustration" which Let us do it within and through the American greait strides forward if we would only realize dealt with the same subject of Federal­ system of due process and in keeping with that the nurse and the medtcal attendant State relations and the need to return our tenacious regard at all times for the who in the middle of the night may deter­ more power to the States. blessings of individual freedom. mine whether we live or die when we need Because I believe this to be one of the You, and the men who you command, are attention-that they have better training, crucial issues facing the Nation today, I America's front line in ·the fight against better pay and better inducements-that the insert both the original article from my crime. You endanger your lives every day teacher who prepares our children, sets an just as the man does in the rice paddies of example for them and infuses knowledge report, and the editorial commentary Vietnam to protect freedom, to protect into them-and sets an example-that they from the Daily Republican Eagle: liberty, to protect your country. should be among our best trained, our best FEDERAL, STATE BALANCE OF POWER To BE This summer, some of you experienced a prepared and our best rewarded. BIG ISSUE new kind of disorder in your cities. You And that the policeman and the sheriff (By Congressman AL Qum) faced, not individual acts of violence or just who protects the lives of our wifes, children, One of the greait debates in the next decade thievery, but you faced massive crimes families and ourselves should be among the wlll be how to restore the traditional balance against people and against property. best equipped, best trained, and the best between the federal government and the Much can explain-but nothing can paid people in the land. states. Unless this most necessary balance is justify-the riots of 1967. We cannot get those things just with rhe­ restored by returning more power to the They damaged ·a great deal more than the toric and conversation, picture-taking and states, we will have lost one of our greatest storefronts and the American homes. They televislon film. We have t.o pay for it. We strengths. damaged the respect and the accommodation have to desire it. We have to be willing to I have been deeply ooncerned with the among men on which a civilized society ulti­ sacrifice in order to get it. rapidity of federal take-over in the past six mately depends, and without which there can That is going to take a lot more than just years. As evidence, examine the host of now be no progress toward social justice. talking "against" crime. That ls going to take Great Society measures passed in the 89th The violence of this summer raised up a among other things being for action. Congress: 21 for health, 17 for education, 15 new and serious threat t.o local law enforce- I would hope that we oould all be for the for economic development, 12 to aid cities, CXIII--1631-Part 19 25888 CONGRESSIONAL RECORD - SENATE September 18, 1967 17 for resource development and 4 for man­ farther, the city must come up with wha.t which grew out of the legislation I intro­ power retraining. the federal people call a Workable Program. duced 3 years ago on this subject. There are now 170 different federal aid And a prime element in the Workable Pro­ programs financed by more than 400 separate gram is a city housing code---something Red In my talk, I also covered some of the appropriations and administered by hun­ Wing doesn't presently have and which, it is issues of particular interest to savings dreds of departments, agencies, bureaus and feared, may generate strong citizen opposi­ and loans in connection with the truth­ regional offices. The federal-state balance is tion. But a housing code we must have if we in-lending legislation now pending before indeed out of kilter. As Illinois Sen. Everett want low-rent housing, and the Workable my Subcommittee on Consumer Affairs Dirksen said recently, we may see the day Program won't be approved until a housing in the House Committee on Banking and when the only people interes,ted in state code has been in force and operation here boundaries will be map makers like Rand­ for six months' time. So the Housing Au­ Currency as part of H.R. 11601, the pro­ McNally. thority sees no possibility of taking i'ts next posed Consumer Credit Protection Act. I do not quarrel with the goals of most fed­ step toward low-rent hous·ing before next Because of the timeliness and im­ eral programs, those to aid cities, reduce summer at bes,t. portance of the savings and loan holding poverty, strengthen education and secure All this suggests why "frustration" is the company legislation and the consumer jobs for the jobless. most frequent word on the lips of citizens ap­ credit bills, I submit herewith a copy of But there is a right and wrong way to do pointed to bring about the low-rent housing my remarks at the Kansas City conven­ this. The Greait Society method, I am con­ here. They begin to suspect that the low­ tion, as follows: vinced, is the wrong way ... concentration inoome elderly who need better places to live of power in Washington, with a.id limiited to will have passed on before the federally­ SPEECH BY CONGRESSWOMAN LEONOR K. SUL­ specific, narrow programs. The States and financed better housing can become a reality LIVAN, OF ST. LOUIS, AT ANNUAL CONVEN­ their know-how are too often by-passed for them. TION OF MISSOURI SAVINGS AND LoAN LEAGUE, under this nan-ow, categorical grant ap­ This is not to suggest that Red Wing is HOTEL MUEHLEBACH, KANSAS CITY, Mo., proach. without fault in its approach to participa.. SEPTEMBER 15, 1967 That was what the debate over the Quie tion in federal housing. We persis·t with a It is a great pleasure for me to have the Amendm~mt to the Elementary and Second­ musty, creaking structure of city government opportunity to come to Kansas City for the ary Education Act was all about. I proposed which is very long on involving citizens and annual Convention of the Missouri Savings a system of block grants oo states, wirth the very short on getting things done. We fail to and Loan League. I know that the Savings states required to prepare a sta.te-wide plan perceive and act upon the city's need for an and Loan people in St. Louis and the sur­ for distributing the funds. effective, central city administration with rounding area, as well as those elsewhere in It is my belief, based on long observation, sufficient authority to c·arry out the policies the State, are vitally interested in my work that the block grant method of federal aid and decisions adopted by the people's elected as a Ranking Member of the House Commit­ ls far superior oo the narrow, specific, cate­ representatives on the city council. A city can tee on Banking and Currency, so it is a gorical method in use now. Although the ma:ke progress through the maze of federal pleasure to find a receptive audience on is­ Qule Amendment was defeated, other amend­ regulations, but this requires a strong execu­ sues which I must deal with on that Commit­ ments submitted by my colleague, Cong. tive who keeps continuously on top of the tee including some which the general public Edith Green of Oregon, did pass. They em­ ball and pushes continuously for the neces­ finds of little immediate concern. bodied mucih of what I had sought, for Mrs. sary looal and federal action. Sometimes, we begin to think that our Green's changes were essentially block grant The whole process would be much simpler, own values in the Congress are a little pe­ in nature. however, if Quie's "block grant" philosophy culiar-at least as to what constitutes sig­ The block grant method is a sound ap­ could be adopted and more responsibility re­ nificant news. I can remember instances proach. It will more directly involve the stored to the states. some controls are when we were engaged in the Banking Com­ states and local communities. It is so sound needed; a housing code may be desirable. But mittee in a knockdown battle over some vital that in the end I believe it wm prevail. Red Wing could deal much more easUy and and far-reaching piece of legislation, while I was greatly encouraged by the final form sensibly with St. Paul than the Washington at the same time working long hours on the of the anti-crime bill as it passed the House. bureauora.cy. We don't think state offi.cials House Floor on major bills, with the press In its revised form the bill embodies the could possibly design such a stifling array of gallery virtually deserted and no one paying block grant of lump-sum principle. The bill, rules and paperwork as emanate from these much attention to what we were doing. Then still to be taken up by the Senate, author­ over-structured federal offices. along would come one of the reporters who izes an expenditure Of $75 million thds fiscal asked me whether we should have co-ed year (1968), to help Staites and communities swimming in the Rayburn House Office Swim· improve their methods of law enforcement. ming Pool, and my answer went out over eJl It is known formally as the Law Enforce­ the wire services and radio and television ment and Criminal Justice Act. In the field Congresswoman Sullivan Discusses net works and was in every newspaper in the of law enforce:m.ent, as in other fields, we "Truth-in-Lending" and Savings and country as seemingly the biggest problem must provide the incentive for strong staite faced by the House of Representatives in th.A and local action with federal dollar a.id. I Loan Holding Company Bills at Con­ Congress of the United States. am convinced. that local responsibility is vention of Missouri Savings and Loan This is certainly not a complaint about paramount. the press, which, on the whole, has been You can look for this debate over return­ League very gracious to me. But it does lead me to ing power to the states and local commu­ wonder occasionally whether it might have nities to gain volume over the yeairs ahead. EXTENSION OF REMARKS been simpler to ignore the big, tough, com­ plex, technical issues in which I am so deeply It is without a doubt one of the moot basic OF decisions Americans must make in the com­ involved and concentrate instead on the ing decade. HON. LEONOR K. SULLIVAN more frivolous aspects of the Washington OF MISSOURI Whirl which are sure to land you in the news­ HOUSING FRUSTRATION papers. IN THE HOUSE OF REPRESENTATIVES Al Quie is 100 p¢ right--see his com­ MISSOURI LEAGUE INSTIGATED HOLDING ments elsewhere on this page-to keep plug­ Monday, September 18, 1967 COMPANY BILL ging for righting the federal-state balance One of the bills in which your organization in the United States through placing more Mrs. SULLIVAN. Mr. Speaker, the is vitally interested is a good illustration weight, power, and responsibility on the Missouri Savings and Loan League was of this point. How much political glamor is state's shoulders. responsible several years ago for alerting there in the phrase "Savings and Loan Hold­ His comments today recall a remark he me to the dangers to the federally ing Companies"? Not very much. On the made to us once. The basic trouble wiith the chartered savings and loans, and to the other hand, is it important? It certainly is. urban renewal program, he said, is that the public generally, as a result of the opera­ Is it important enough to demand the at­ states don't have any real role in its operation. tions of savings and loan holding com­ tention of the 32 Members of the Committee The same point is most vividly illustrated on Banking and Currency at a time when in Red Wing's efforts to provide the federally panies not now subject to Federal reg­ we are also pressed with a variety of other offered low-rent housing for the low-income ulation even though the savings and urgent legislative concerns? Again, the an­ elderly. Let us briefly review the history of loans they control may be insured by the swer is yes. And I know you agree. this local effort: Federal Savings and Loan Insurance Of all of the state Savings and Loan or­ Red Wing debated the subject during the Corporation. ganizations in the country, I think yours is winter Of 1965-66. The city council held a It was my great privilege and pleasure entitled to the greatest amount of credit for public hearing and voted to create the neces­ on Friday to speak at the luncheon the degree of progress which has been sary Housing and Redevelopment Authority. meeting of the annual convention of the achieved on the Savings and Loan Holding It was last October be.fore this new five-man Companies bills. As you all probably know, agency first met, and its only real accom­ Missouri Savings and Loan League in the bill I introduced more than three years plishments in the 11 months since have been Kansas City, Mo., and to discuss the ago, H.R. 10189 of the 88th Congress, in­ to select an architect and fill out federal present status of the administration bill troduced on April 13, 1964, was the first of forms. Before the Housing Authority can go on savings and loan holding companies the current bills on this subject and was the September 18, 1967 CONGRESSIONAL RECORD- SENATE 25889 precipitating factor in the development of a down with compromises as to be almost in­ clerks on one day quoting a rate of 1 Y2 % a bill by the Federa.l Home Loan Bank Board effective. The so-called "Truth-in-Lending" month and on the next day a rate of 18% on behalf of the Administration. That bill bill passed by the Senate on July 11 by the a year, and it was discovered that the cus­ originated from discussions held with Boyd remarkable--the fantastic-unanimous roll tomer signed up for the 1 Y2 % deal without Ewing and other leaders of the Missouri call vote of 92 to O is a good illustration of batting an eye where as it took from 30 to League. So if any legislation passes in this that. As most of you know, I am deeply in­ 45 minutes per customer to explain the 18% Congress-as I sincerely hope it will now volved in that issue as Chairman of the charge as being the same as 1 Y2 % a month. that the Senate has passed S. 1542 and the Subcommittee on Consumer Affairs which Suppose you people had to express your House Committee is putting together the recently completed two solid weeks of hear­ dividend rate on savings as one third of one record of Subcommittee hearings-our suc­ ings, morning and afternoon, on consumer percent a month? Do you suppose many of cess in enacting legislation will flow from the credit legislation. The savings and loans have your members would think they were get­ initiative and leadership the Missouri League generally been in the forefront of support ting a good run for their money in your in­ provided on this important issue. for effective Truth-in-Lending legislation, as stitution? I put that question to the wit­ I want to come back to that legislation well you should be, since of all of the institu­ nesses for the American Bankers Association later in my talk and discuss some of the tions in this country granting credit, your and they answered by saying that if they details of the Administration bill, the Sen­ practices are the least susceptible to criti­ could express their credit charges on loans ate-passed bill, and H.R. 1322, which is the cism or, to put it another way, are among the as a monthly percentage rate--as the Sen­ number of my bill in this Congress on Sav­ very best from the standpoint of consumer ate passed Truth-in-Lending bill would let ings and Loan Holdings Companies. First understanding and consumer protection. the department stores do on revolving charge however, I would like to tell you a little bit ANNUAL RATE OF 36 PERCENT ON -they would be willing to express the in­ about the atmosphere in which legislation is GROCERY CREDIT I terest rate on savings on a monthly rate now being considered in the Congress as a also. Maybe so. But I doubt very much that I have been horrified by some of the prac­ very many banks would take full page ads backdrop for the setting in which this b111, tices we have uncovered among even the or any other, will be considered. in the newspapers to shout about the great respectable elements of the credit industry. advantages of depositing money in their in­ CONGRESS REFLECTS MOOD OF INDECISION I noticed the other day thait one of the stitutions at the generous interest rate of As we approach the 1968 Presidential elec­ bank credit card operations in California, is one third of one percent a month I tion campaign, Congress could conceivably now promoting a special service among the begin to show more and more concern-or sup.ermarkets to charge groceries ait the METHODS OF AVOIDING HIGH CREDIT CHARGES at least more effective concern-over the check-out counter for a mere 3 % service I would like to see the savings and loans problems confronting us in every aspect of charge. Apparently, many shoppers are seiz­ lead an aggressive campaign to urge their our national life. Certainly the emphasis ing advantage of this dandy little conven­ members to revert to the old fashioned, out­ up until now-and we have been in session ience of being able to say "charge tt'' to the moded!, obsolete, unmodern, "square" cus­ during most of the past eighrt and a half food checker for a mere 36 % annual interest tom of saving money by paying for things months-has been to argue a lot and pass rate! Imagine thait ! at the time they make the purchase, rather very little. Undoubtedly credit service ls ex.pensive than retroactively at a substantial extra cost. Only three appropriation bills for the 1968 and no one should be expected to provide Many of the stores still-yes they do-re­ fiscal year which began last July 1 have a business service as a ohari.ty. But 36% in­ gard payment in 90 days as being the same actually been enacted into the law. This is terest on a loaf of broo,d and a quart of milk as cash, with no credit charge, but appar­ one way to hold down expenditures! But it and other groceries? Of course expressing it ently you have to ask for such terms. Peo­ doesn't solve very much. In most of the agen­ in terms of 3 % a month sounds moderaite ple should be urged to inquire. If ever I buy cies of the government, programs enacted in and appealing. I wonder how much house­ any large ticket item that I would like to the last Congress have not yet been funded wives charging groceries on a monthly bill pay for over three months instead of on one and therefore cannot proceed. Instead, we and paying the equivalent of 36% annual monthly statement, I always check the avail­ have passed resolutions authorizing the de­ interest are aware of the 36% figure. We have ability of 90 day credit, and I am sure other partments and agencies to continue to op­ quite an educational campaign to wage if people do, too, but not enough of them do. erate at the same levels of expenditures for we are going to get consumers to use good Are you advertising to your members that the same programs for which they received sense on the purchase of credit. We can in building up their deposit accounts in your funds in the previous fiscal year. It is not pass laws to protect the consumer from savings and loans, they can be in a posl tion unusual for the Congress to go into Sep­ fraud and deception in the staiting of credit to pay cash for the things they want to buy tember with many of the appropriation bllls charges, but certainly people should be able and thus can effect substantial savings on in a state of suspended animation, but the to figure out on their own thait 3 % a month credit charges? difference this time is that despite the crises is 36 % on an annual rate basis, compa.red How many of you stick relentlessly to a confronting us in so many area.a of our na­ to the 4% or 43,4 % they receive on an annual calendar year system which pays dividends tional life and in our economy, there is really rate basis on their savings. only on March 31, June 30, September 30, no sense of urgency among the public and, THE REVOLVING CREDIT CLAIM THAT and December 31? Have you given any therefore, no zeal to get on to the task of 12 TIMES 172 IS NOT 18 thought to a fiscal year set-up which would making dimcult decisions in the Congress. This leads me to wonder whether the sav­ enable your members to receive credit for This has nothing to do with partisan con­ ings and loans are doing enough educational their dividends say on February 28, May 31, sideration. The answer seems to be thait we work among their members to tea.oh them August 31, and November 30? In this way, are poised as a people on a great plateau of the facts of cred!t life, irwludl.ng credit life they could withdraw before Christmas, or indecision. This could change over night, of insurance, too, which is so frequently a part before the children go off to college in the course, under the pressures of events. But of every consumer credi.t transaction. The fall, without losing dividends on their sav­ in view of the kind of events which could department stores have had phenomenal suc­ ings. This might give you some heaidaches trigger vigorous action by the Oongress, per­ cess in promoting their revolving credit pro­ sometimes in your cash position or force the haps we are just as well off in our present grams whioh involve a monthly charge of sale of some additional paper to Fanny Mae, state of uncertainty, because usually it is but the service you would render to your 1 Y2 % , which, in my old \fashioned mathemat­ only the threat of disaster of one kind or ics, comes out to 18% a year on a.n annual members would be a tremendous factor in another whtah goads a Congress to rth!s na­ rate basis. We have argued over that figure saving them money on credit transactions ture and composition to act. during all of our hearings and received all and thus provide them with additional funds COMPROMISES OFTEN INEFFECTIVE sorts of disclaimers to the effect that the they can deposit with you for the needs of the housing industry. Does that make sense? On the other hand, the·re have been nu­ actual interest paid on the individual ac­ merous occasions during the years in which I count is usually less than 18 % . Thait may FIRST MORTGAGES UNDER "TRUTH-IN-LENDING" have served in the Congress when an effec­ very. well be true. But regardless of how you Now let me say a word about fiq;t mort­ tive, working majority-and we do not have slice it, or with whait grace, or grace period, gages under the Truth-in-Lending bill. You that at the moment-pushed and prodded or "free ride" on the number of days after notice that I am putting off my discussion of through long overdue reforms in the health, the purchase is made for which no credit Savings and Loan Holding Company legisla­ education, housing, social welfare, and finan­ charge is maide, the charge-when it is tion, in which you are so interested, until I cial fields not because we were in a crisis but maide--is for spec!fied one month segment get in some licks on some of my other legis­ because they were things which deserved of the calendar-one twelfrth of a year-no lative interests. In any event, the Truth-in­ being done and the votes were present to more, and no less~nd under those circum­ Lending bill as it passed the Senate, S. 5, accomplish worthwhile goals. I guess all of stances the 1 Y2 % monthly rate is 18 % on an exempts from the disclosure requirements all us tend to hope that some miracle of aware­ annual rate basis. first mortgages. I know that the savings and ness will sweep over the 90th Congress on a If the convenience of a charge account is loan organizations approve of and support strictly intellectual level to prompt us to worth that much to the individual family, that exemption. But I am fighting it and I pass the bills we know in our hearts should that is their business. Unfortunately, sur­ hope to keep that exemption out of the be passed, and do it without the spur of a veys have proved that most people entering House bill. It is not that I think savings and national emergency. But don't count on it! into an agreement for a 1¥2 % a month cred­ loans are defrauding the public on first In any event this is the rather becalmed it charge on store purchases have no con­ mortgages and charging excessive interest atmosphere in which most legislation now ception at all of the true interest rate they rates you do not disclose. Not at all. The lingers. What is passed ls often so loaded are paying. One experiment had the credit truth is the exact opposite. Whether FHA 25890 CONGRESSIONAL RECORD - SENATE September 18, 1967 or Conventional, your mortgages almost al­ thing through which is worth having en­ However, according to Chairman John ways are accompanied with the full facts. acted. The lobbying against this legislation is Horne, of the Home Loan Bank Board, ex­ Perhaps you are not anxious to tell a pros­ prodigious-because the stakes are very large. perience shows that the present law has not pective borrower the total amount of inter­ SAVINGS AND LOAN HOLDING COMPANIES been sufficiently effective in safeguarding est he will pay over the life of the mortgage, REQUmE SCRUTINY against abuses in holding company opera­ as my consumer credit bill would require you tions. to do. We would argue over whether this That this is indeed "reform" legislation, is This is demonstrated by the statistical would discourage home-buying. I do not emphasized by a statement in the House re­ records kept by the Home Loan Bank Board think it would. It has not had that effect in port when the Spence Act was enacted, that: of those institutions which are of some de­ FHA mortgages. It would have a good effect, ". . . the holding company method of op­ gree of supervisory concern. At the end of I believe, in convincing families to make a eration is susceptible to abuse by unscrupu­ 1966, there were 28 institutions, with $2.3 larger down payment and larger monthly lous promoters.... One of the fundamental billion in assets, that were ranked in the payments, if they can, in order to reduce the rules of sound lending ls that the parties category of the more serious problem cases. total interest cost. This is something I would concerned deal at arm's length. The bill And holding company associations, although think you would want to encourage. would preserve this sound and tested lend­ possessing only 12.5 % of the assets of the But what I am really concerned about-­ ing requirement with respect to institutions entire industry, accounted in asset terms for deeply concerned about--in any provision of whose loanable funds are derived almost en­ 63% of the serious problem group. In the a Truth-in-Lending law which would ex­ tirely from the general public." less serious problem category were 29 asso­ empt all first mortgages is that there are a Savings and loan associations have been ciations, with $700 million in assets. If both great many unconscionable credit frauds be­ specifically created for expressly favored pub­ categories are combined, the holding com­ ing perpetrated on elderly couples and on lic purposes, to foster thrift and economical pany associations account for 54% of the widows who have paid off their mortgages home financing. To insure that they adhere assets of institutions whose financial con­ and suddenly find that a piece of paper they to, and successfully serve, those purposes, dition and operations are problems. In short, signed for a siding job or a new furnace or they receive special forms of public support-­ this one-eighth of the industry is producing roof or other major repairs-a piece of paper a public system of insurance for their ac­ over half of the Board's supervisory difficul­ handed to them by what I understand are counts, a public system for obtaining credit ties and almost two-thirds of its most serious commonly called the "suede shoe boys" who at lower costs, and favorable tax treatment. problems. Such a situation cannot go un­ say it is merely a confirmation of the order The full thrust of the Federal Government is remedied, if the Federal Government is to or something of that nature-turns out to directed at assuring public confidence discharge its responsib1lities to protect the be what is regarded as and accepted as a in their financial integrity, based upon a public's savings and the standing of the rest mortgage, which then becomes a first mort­ program of regular examinations and super­ of the savings and loan business. gage, and thus exempt from coverage under vision. Thus the question of whether hold­ ing companies should be allowed to operate MANY SHORTCOMINGS IN SENATE-PASSED 5. s. at all in such a field, and how the interests HOLDING COMPANY BILL There are enough such cases in existence­ of their insured subsidi·arles may be sufll­ Now I will take a few moments to outline ! have encountered enough of them myself ciently ,protected if holding compa.nies are the differences between my bill, H.R. 1322 in incidents involving elderly constituents, permitted, are legitimate questions for public and the Senate-passed version of S. 1542. I or overly trusting homeowners, in my district concern and for Congressional review. firmly believe that my bill is a much simpler in St. Louis-that I feel we must force these Based upon the experience with the Spence and much more effective bill, for S. 1542 is credit gyps to come clean under any Truth­ Act since it was enacted by 1959, it ls fair riddled with compromises. But the Senate bill in-Lendlng law. We cannot let them escape to say that it effectively achieved some but is certainly better than nothing and, doubt­ under an escape clause written in primarily not all of its objectives, and achieved others less, can be very useful if not weakened to save the legitimate home financing indus­ only pa.l'ti.ally. In addition, the Home Loan further, which is always a danger. try from a bit of bookkeeping annoyance. I Bank Board has uncovered serious problems don't know whether or not I can convince My b111 defines "control" by a holding com­ that the 1959 law did not undertake to deal pany in terms of a holding of 10% or more you on this issue, but I want you to under­ with at all. stand why I feel so strongly on the coverage of the stock of an insured association. The Although the 1959 enactment placed some of all mortgages--first, second or whatever­ Senate-passed bill provides for a 25% owner­ restraints upon the growth of a holding com­ under a Truth-in-Lendfilg statute. ship test. I must object to such a high figure pany once formed, it can hardly be said to unless an additional provision is added to ORIGINS OF SAVINGS AND LOAN HOLDING have prevented further encroachment by include "de facto control". You will recall COMPANY BILLS holding compan1es in the savings and loan that the present Spence Act defines control You have been very patient in listening field. At the end of 1959 there were 44 holding as 10% Korean War. it has played in instigating improvement in passage. Besides extending the disability pension the Spence Act for there is little doubt in and war-time compensation rates to Vietnam my mind that meaningful holding company veterans, Congress has increased the rate legislation would still be years in the future Veterans' Affairs of this assistance. The rates are now adjusted if your officials had not started the wheels to correspond to the increased cost of living. moving when you did. The wheels are mov­ Other changes in disaqility and pension ing now, and a lot of other groups are jump­ EXTENSION OF REMARKS assistance do not affect the entire range o~ ing aboard-but you started it. OF recipients but are nonetheless of great tt::. portance to particular groups of v-eterans. ALL DEPOSITORS IN INSURED ASSOCIATIONS HON. ROMAN C. PUCINSKI They are as follows: COULD BE AFFECTED OF ILLINOIS All veterans over sixty-five who meet the As I said earlier, there is not much politi­ requirements of limited income will be eli­ cal glamour or exciting news interest in the IN THE HOUSE OF REPRESENTATIVES gible for the non-service-connected disab111ty dull and technical provisions of a savings Monday, September 18, 1967 pension reg.ar

SENATE our abiding faith, we beseech Thee, in THE JOURNAL those deep and holy foundations which Mr. MANSFIELD. Mr. President, I ask in TUESDAY, SEPTEMBER 19, 1967 our fathers laid, lest foolish futility unanimous consent that the Journal of in this desperate and dangerous day we the proceedings of Monday, September