14696 EXTENSIONS OF REMARKS July 13, 1989 EXTENSIONS OF REMARKS THE SUPREME COURT AND lowed-it isn't-but that it is now harder to tiff need not have intentional discrimina CIVIL RIGHTS justify quotas or force them upon employ tion. Statistical imbalance in the racial com ers. Almost all Americans want to heal the position of the work force was presumed dis wounds of race; almost all are concerned criminatory unless proven otherwise. The HON. F. JAMES SENSENBRENNER with civil liberties: but most are opposed to test was the consequences of business prac OF WISCONSIN racial and sexual quotas in employment, tices, not their motivation. IN THE HOUSE OF REPRESENTATIVES promotion and education. This highly questionable reading of the Thursday, July 13, 1989 MORAL ASSAULT act produced unfortunate results. Statistical But quotas are the pet solution of the imbalances are everywhere in our society Mr. SENSENBRENNER. Mr. Speaker, civil American left, which specializes not in argu since entirely innocent social forces and cul rights groups and Members of both Houses ment but in moral assault upon those with tural differences do not produce proportion have raised a significant cry of outrage over whom it has substantive differences. Now al representation of each ethnic group in the Supreme Court's recent civil rights deci that the moral assault is directed at the Su each occupation. sion in Wards Cove versus Atonic. So often preme Court it is important that Americans Wards Cove involved Alaskan salmon can neries that had a predominantly white work when an issue gets flagged by civil rights understand what the court has in fact done and what it has not. force in skilled jobs and a predominantly groups as "Bad" for civil rights, many Mem nonwhite work force in unskilled jobs. The bers jump right on the bandwagon and start The court's January decision in Richmond v. J.A. Croson Co., held unconstitutional the court of appeals had held that imbalance singing the same tune-lest they should be la city's minority set-aside program. The City created a prima facie case against the com beled "anti-civil rights." Council had adopted an ordinance requiring panies. Justice White's opinion for the ma Well, I can assure you that to be labeled prime contractors on city construction con jority disagreed: The lower court's theory anti-civil rights today, you need only follow the tracts to subcontract at least 30% of the "at the very least, would mean that any em civil rights leadership agenda-because what dollar amount of the contract to businesses ployer who had a segment of his work force you will get are quotas. But quotas are not at least 51% owned by U.S. citizens who are that was-for some reason-racially imbal anced, could be hauled into court and forced what we bargained for in civil rights. Any bill to "Blacks, Spanish-speaking, Orientals, Indi ans, Eskimos, or Aleuts." It was less than to engage in the expensive and time-con overturn Wards Cove is a bill to mandate clear why Richmond thought it should suming task of defending the 'business ne quotas. extend the benefits of its quota to minori cessity' of the methods used to select the As it stands, employers will finally be able ties from anywhere in the U.S. and even less other members of his work force." Thus, the to make some employment decisions on the clear how Orientals, Indians, Eskimos, and "only practicable option for many employ basis of merit for a change and now Congress Aleuts got on the favored list. The one ers will be to adopt racial quotas. . . : this is wants to take all that away. No, they say thing that was clear was that white-owned a result that Congress expressly rejected in quotas are what we want. Well, I say no to companies were to be discriminated against. drafting Title VII." that. That goes against everything we have Croson Co. was. The court held that the proper compari Croson was the only bidder on a project son was between the proportion of a racial worked so hard to achieve-civil rights in a and the only minority supplier of fixtures group in the work force and the proportion color-blind society. willing to participate came in well over of. qualified members of that race in the The recent editorial in the Wall Street Jour market price. The city denied requests that pool available to the employer. The plaintiff nal by the very distinguished Judge Robert H. the minority requirement be waived or that must also identify the employment practice Bork, eloquently explains this outrage. I in the contract price be raised and Croson lost alleged to be responsible for the disparity. clude it in my remarks and urge my col the contract. Once that has been done, the employer leagues to read and heed. The court found a violation of the equal must produce evidence of business justifica [From the Wall Street Journal, June 30, protection clause of the fourteenth amend tion for those practices but the ultimate 1989] ment. "The Richmond Plan," Justice burden of persuading the court that dis O'Connor's opinion said, "denies certain citi crimination exists remains with the plain THE SUPREME COURT AND CIVIL RIGHTS zens the opportunity to complete for a fixed tiff.
e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. July 13, 1989 EXTENSIONS OF REMARKS 14697 lished "general rule that a person cannot be TRIBUTE TO JOHN MOONEY "I visited Israel recently and was shocked deprived of his legal rights in a proceeding by what I saw there. The state is so small to which he is not a party." The opinion that a soldier standing guard on any border necessarily relied upon the Federal Rules of HON. JAMES J. FLORIO couldn't be more than two hours' drive away Civil Procedure to hold that the white fire OF NEW JERSEY from his mother sitting on her back porch. fighters were under no obligation to inter IN THE HOUSE OF REPRESENTATIVES "It's a huge military base on a war footing vene in the litigation. seven days a week. Surrounded on three Thursday, July 13, 1989 sides by its enemies, and on the fourth side That New Republic editor found the tech Mr. FLORIO. Mr. Speaker, I would like to by the sea, the Israelis worship the ground nical language insufficiently "exalted", and invite my colleagues to join me in paying trib they walk on, and have tremendous respect quoted Justice Blackmun's dissent in Wards and love for their country. Cove. "One wonders whether the majority ute to John G. Mooney, the recently elected "Israel is smaller than the state of New still believes that race discrimination-or, commander of the Veterans of Foreign Wars Jersey, and really is fighting for its life. The more accurately, race discrimination against [VFW] for the State of New Jersey. visit really was an eye-opener for me." non-whites-is a problem in our society, or Mr. Mooney was born in West Orange, NJ, Mooney was "appalled" by the recent Su even remembers that it ever was." That and graduated from high school there. He at preme Court decision that burning the attack is wide of the mark. It is not only an tended Rutgers University before joining the American flag is not illegal. unjustified slur on five justices but assumes Army in 1952 and serving in Korea for 2 "The decision was a damn shame, and I'm that the court's function is to replace law years. sure I speak for every VFW member when I with moral passion, even if that moral pas When he returned home, he was in the say I'm appalled. It indicates to me that our sion produces dubious results. whole justice system is breaking down. trucking industry prior to going to work for "Promoting patriotism and protecting the These and other decisions of the court Essex County. flag is what the VFW stands for, and we'll have prompted the civil rights groups to say A member of the Bloomfield VFW Post 711, protest this decision vigorously. We will they will tum to Congress to undo the Su he has been active in the organization for 29 seek possible ways to nullify it. preme Court's decisions. Since those deci years. He has served as post and district "I also find the situation in China very sions are clearly correct, it is to be hoped commander and has been active on numer upsetting. The young man seen on televi that Congress will not respond. President ous VFW committees at both the State and sion trying to stop a tank by himself during Bush has stated that he does not think new local levels. the democracy uprising deserves a world legislation is needed. But if these matters peace award. As a member of the House Veterans' Af "The democracy movement in China has are taken up, and if new legislation is writ fairs Committee, I have had the pleasure of ten, Congress should specifically disapprove only been wounded. You can rest assured of quotas and avoid any provisions that working closely with my friend John Mooney, it'll be heard from again. have the effect of pressuring employers to and the members of the VFW of New Jersey. "It was a genuine uprising of the people. adopt them. For years, the VFW has fought for the rights They were telling the government in no un of veterans and has worked to ensure that certain terms 'Enough is enough!'" The moral passion of the dissents in these veterans are given the respect and dignity Mooney sees a resurgence of patriotism in cases is imprudent on more grounds than they deserve. America. one. For too long, in our zeal to achieve "We're entering upon a new era. America moral results, we have ignored the morality I feel Mr. Mooney is well prepared to lead has a good feeling about itself, and is confi of process. A judge should have the compas the New Jersey Veterans of Foreign Wars in dent about its future despite its problems." sion to understand the human situation meeting the challenges ahead. John Mooney Mooney said VFW projects are many and before him in order to apply law intelligent and the fully-staffed VFW office in Newark varied. ly and sensitively. The judge should never, keep their door open to any veteran for advice "We bring cheer into the veterans hospi however, allow compassion to control his and referrals. tals, even taking some patients on fishing reading of the law. The morality of process I am delighted that John Mooney has been trips. Gibbstown VFW Post 5579 recently is the highest morality of the jurist. received a national award for such a project. elected to serve as commander of the VFW of "There are 365 VFW posts in New Jersey, New Jersey. I look forward to continuing to SALT IN THE WOUND with a total membership of 73,000. We stand work with John Mooney in his new position. I ready to help any individual veteran who is But there is a second objection to a moral would like to share with my colleagues the fol down on his luck. ity that leads to quotas, and this objection lowing article: "There is a fully staffed VFW office in applies no matter what arm of government [From the Sunday Star-Ledger, June 25, Newark open to any veteran for advice and approves or requires them. Race is indeed a 1989] referrals. We have an ongoing project at the wound that has not healed. But it is precise VFW COMMANDER SEES U.S. WINNING THE veterans hospital in Paramus, in which ly the use of preferential quotas that rubs we're raising $65,000 to build a glass-en PEACE closed garden with a gazebo as a recreation fFesh salt into the wound. When non-white (By Charles Q. Finley) individuals who have not themselves been area for the patients. the victims of discrimination are preferred John Mooney, 53, of Bloomfield, the new "There are VFW scholarship programs na to white individuals who have not inflicted state commander of the Veterans of Foreign tionwide. We go into the schools to spread Wars, hopes America never fights another the word about our freedoms. discrimination, racial resentments are cer war. "We tell the young people what America tain to be inflamed. The problem is likely to "We've had enough of war, and I hope is all about. It's important they are knowl grow more acute, for the question of race VFW membership will fade away in the edgeable about this nation's heritage. and ethnicity is no longer simply a. black next century because our country remained "When adults tell them personally where white issue. at peace," said Mooney, an investigator for we've come from, and what we are today, it As the composition of our population the Supervisor of Elections in Essex County. prepares them to follow in our footsteps. changes, we see competition for group enti "The VFW is a marvelous organization This is a way to make America stronger." tlements among whites of European ances which carries on programs to help veterans Mooney was born in West Orange and try, blacks, Hispanics, and Asians. The com and others as well, but none of us ever want graduated from high school there. He at petition has become bitter and has led to to see a new conflict. Since Vietnam, our tended Rutgers University before joining the expression of sentiments that can only government has become much more cau the Army in 1952 and serving in Korea for be called racist. The only possibility of tious as to what action it takes when trouble two years. avoiding a much worse situation than the develops in some other part of the world. When he returned home, he was in the "It'll be taking a long, hard look before trucking industry prior to going to work for one we now face is to drop the entire notion sending in troops. Of course, we must main the county. of group entitlements, which means aban tain a strong defense, and nuclear arma A member of Bloomfield VFW Post 711, doning quotas. The Supreme Court has ment is in itself a deterrent to war. he has been active in the organization for 29 been moving in that direction, which is for "I don't believe a nuclear conflict ever will years. He has served as post and district tunate both for the integrity of the law and come about between the major powers. But commander, as well as being active on nu for social policy. We must hope that the I am concerned that the wrong smaller merous VFW committees at both the state court is not affected by the moral intimida nation might attain nuclear capability; then and local levels. tion to which it, and we, are being subject there's no way of knowing what might Mooney and his wife, Helen, have three ed. happen. children-John Jr., a financial planner; 14698 EXTENSIONS OF REMARKS July 13, 1989 Thomas, a computer analyst, and Patricia, extravaganza will be televised worldwide, in It's expected to take the band nearly an an assistant bank manager. cluding coverage in the United States. hour to cover the three-mile route, which Mooney said the VFW will be pressing The Rattlers, decked in their familiar begins at the Arc de Triomphe and winds Congress for more adequate funding for vet orange-and-green uniforms, are eager to down the Champs Elysees. erans hospital construction. play their instruments, smile and march-or The Marching 100-cut in half because of "Cutbacks in this area have caused much more precisely moon-walk-through the summer break-has been practicing five hardship." streets of Paris and perhaps into the hearts, days a week for the last month in prepara Mooney said he enjoys golfing and fish if not feet, of people around the globe. tion. The remaining band members arrived ing, but he spends most of his free time Jean Paul Goude, artistic director of the yesterday for rehearsal and this week's taking part in VFW activities. $16 million extravaganza, said the Marching practice sessions. "I meet many fine people in the VFW, and 100 was his first choice to represent the Representatives of the French consulate I also gain much self-satisfaction being a United States because it is "the epitome of will visit the Florida A&M campus today to member of a group that does so much good black music." discuss their country's culture and customs. for so many." Goude, who first saw the Marching 100 "You get kind of nervous when you think when he lived in New York City 12 years about representing this country, but this is ago, said that groups in all parts of the a great chance to showcase music and ex FLORIDA A&M BAND TO MOON world have incorporated elements of Ameri change and learn of different cultures," said WALK THROUGH PARIS can black music and dance into their presen Sherwood Brown, a 21-year-old baritone tations. player. "They
the department during the Reagan Adminis BROADER LOSSES BY F.H.A. Last January the offices of DRG and its af tration. Co-insurance is just one of the programs filiates were searched by F.B.I. agents, who Meanwhile, Bush Administration officials creating losses for the F.H.A., which pays charged that the company had engaged in say that an inquiry by the Federal Bureau claims out of four separate funds. The Gen H.U.D.-related fraud and theft, according to of Investigation into a private co-insurer has eral Accounting Office, Congress's investiga an affidavit filed last January by one agent, broadened to include an examination of the tive and auditing arm, reported in May that Robert E. Carroll. company's ties with Thomas T. Demery, the the agency as a whole lost $452 million last Officials said that documents involving Assistant Secretary for Housing from 1986 year. Premiums paid by private lenders are Mr. Demery that were seized in the search to 1988. the main source of the agency's income, and of DRG's offices were an important part of Mr. Demery, formerly a developer and they have been declining at a time when the expanded F.B.I. inquiry. mortgage consultant in Michigan, has previ claims have been mounting, a result largely According to Mr. Demery and his financial ously described how he won his appoint of a depressed real estate market, particu disclosure statement, he brokered loans ment at the department by lobbying high larly in areas of the Southwest. through his private real estate consulting Republican officials. In recent weeks, he H.U.D.'s co-insurance literature for lend company in Michigan until 1984, two years and Deborah Gore Dean, who was executive ers explains that the program "reduces the before he became H.U.D.'s top official for assistant to the Reagan Administration's number of persons who have to prepare and housing. In an interview, he denied any Housing Secretary, Samuel R. Pierce Jr., review documents at each processing step wrongdoing but acknowledged that he had have emerged as central figures in the and shifts decision-making authority from not accepted other department officials' awarding of consulting contracts to former H.U.D. to the lender." criticism of DRG and the co-insurance pro officials of that Administration as well as But a vast layoff of auditors at the depart gram. He added that while he had recom other influential Republicans. ment left "nobody to watch the store" when mended a less aggressive position concern Various Federal inquiries into the man lenders arbitrarily "did their own underwrit ing DRG than other, "competing" officials agement of the department have so far fo ing" in the co-insurance program, said at the department, he had shared the over cused mainly on the activities of consultants Dennis Penman, a Buffalo builder who was all objective of trying to save money for the and on a program to rehabilitate housing interviewed for a H.U.D. post by the Bush F.H.A. and make DRG a more "responsible" for the poor. Now the expanded F.B.I. in White House but was not appointed. lender. quiry, involving the DRG Funding Corpora A report last December by the depart Mr. Demery also said that ethics officials tion, the largest lender in the F.H.A.'s $5 ment's auditors said that adequate oversight had allowed him to participate in DRG mat billion co-insurance program, is the first in had led to unsound loans, initiated apprais ters because "I had no financial interest" in dication that the bureau is interested in the als and inflated mortgages, which in turn the company while at the department. He activities of Reagan Administration political led to large fees for the lenders and losses said that from 1982 to 1986 he was a H.U.D. appointees while they were a H.U.D. for the department. consultant "pretty much full time" and that Indeed, auditors working for Paul A. around "1984 or 1985" he investigated for NATURE OF THE PROGRAM Adams, H.U.D.'s inspector general, have No one has been charged with wrongdoing the department a troubled DRG-financed been warning in reports since 1985 that co project in Houston, Colonial House. in connection with the co-insurance pro insurance projects are "overmortgaged." gram, and Mr. Demery said in an interview Colonial House is at the heart of the "Overvalued properties can further in F.B.I. inquiry into overvalued loans by today that he had acted properly while at crease the amount of H.U.D.'s losses when the department. But enough evidence has DRG, and the F.H.A. is expected to lose $35 insurance claims are paid," a 1988 report million on the now-defaulted project, ac now come to light to indicate that co-insur noted, "since less than the estimated value ance is the most costly legacy of Secretary cording to the affidavit by Mr. Carroll, the of the projects may be realized from disposi Federal agent. Pierce's troubled tenure. tion of the properties." "Co-insurance" is H.U.D. terminology for An inventory of dockets retrieved by the But Mr. Adams told a Congressional sub F.B.I. in the search of a real estate affiliate a program under which private lenders committee last month that when he alerted assume about 20 percent of the risk of in of DRG that has no business with H.U.D. senior political appointees at the depart uncovered at least five memorandums and suring a mortgage while the Government ment who had helped develop the program, assumes responsibility for the remaining 80 letters in the titles of which Mr. Demery's they "characterized our findings as unfair name appears. percent. and unjustified." This division of risk and responsibility was The inventory lists only a brief descrip Mr. Adams said in his Congressional testi tion of the seized files. But Federal officials introduced in 1983 as one of the Reagan Ad mony that co-insurance losses resulting ministration's initiatives in public-private said the documents were pertinent to their solely from mortgages held by DRG, the inquiry whether there was a financial or partnership. It was based on an assumption company at the center of the F.B.I. inquiry, that the private lenders could oversee most other relationship that was improper be had come to $55 million and that the losses tween Mr. Demery and the DRG after he of the underwriting process, credit checks for the entire program might amount to and appraisals without Government super became Assistant Secretary for Housing in hundreds of millions of dollars. 1986. vision. PRICE WATERHOUSE FINDINGS But auditors from Price Waterhouse, Mr. Demery said in the interview that he hired by the Government to look into the The new, even larger estimate of $1 billion did not know what the seized documents program, have concluded that this approach in accumulated losses over several years was pertained to. led to enormous losses, and their work and reached as a reuslt of a recently completed the intensified F.B.I activity seem to have audit by Price Waterhouse, said Roger R. opened a major new front in the H.U.D. in Stolz, the official who is supervising the RICO, ABORTION AND THE vestigations being carried out by the Justice audit for the G.A.O. FIRST AMENDMENT Department, Congressional committees and The auditors have not yet released their Secretary Kemp. audit of the F.H.A. for 1988. But for 1987 they have made more than 60 adjustments HON. JOHN J. LaFALCE BLOATED MORTGAGES to the agency's books, including a drastic re OF NEW YORK Investigators say the large losses in co-in duction in its equity, or capital, from $3.1 IN THE HOUSE OF REPRESENTATIVES surance stemmed in significant part from billion to $1.2 billion, and they expect a neg some lenders' practice of vastly overvaluing ative cash flow for the next two years. Thursday, July 13, 1989 property that was being mortgaged. "They hadn't anticipated these kinds of Mr. LAFALCE. Mr. Speaker, I would like to In the course of arranging these inflated losses," Mr. Stolz said, "but the lack of over mortgages, the investigators say, a lender sight led to the abuses. You can't give some include in the RECORD an excellent column would receive a large servicing fee based on one your checkbook to write checks without written by Nat Hentoff which appeared in the the size of the mortgage. Later, when the oversight." Washington Post on Saturday, July 8, 1989. owner or developer defaulted, the lender When asked whether any information Mr. Hentoff brings to our attention the con was able to pay its 20 percent share of insur about H.U.D. officials that might have been vergence of two of today's most heated ance costs and still come away with a profit, uncovered in the audit had been brought to issues: the preservation of first amendment leaving the Government responsible for the the attention of the F.B.I., Mr. Stolz said he rights of protesters and the issue of abortion. rest of the loss. had no comment. "It's pretty sensitive," he The F.B.I. is looking into the possibility said. Under the application of the controversial that officials at the department who super But Administration officials said that racketeer influence and corrupt organizations vised the program were improperly influ Price Waterhouse had taken certain infor law, abortion protesters have been labeled as enced to give preferential treatment to at mation to the F.B.I. and that bureau agents gangsters and sued for both treble damages least one lender. were now working with the firm's auditors. and attorney's fees. Regardless of one's posi- 14700 EXTENSIONS OF REMARKS July 13, 1989 tion on the issue of abortion, all legislators that the newsletter printed an account of freedom that this cherished emblem repre should reject the application of RICO to moral the Operation Rescue demonstration after sents." and political protesters. I am pleased to share it was over. Philadelphia. One of the lawyers for the plaintiffs is that it was "expressive conduct" permitted To most of his fans, Jack will be remem Ellen Doyle, former executive director of by the Constitution when Texan Gregory bered as the irreplaceable master of ceremo the ACLU in Pittsburgh. She explained to Johnson torched the U.S. flag during the nies who lit up the Latin Casino with his pol me why People Concerned for the Unborn 1984 Republican convention while anti ished introductions, amusing jokes, and hu Child is a defendant: "All those demonstra Reagan marchers chanted: "America, the morous songs. His 25-year entertainment tors were showing up at the building, and red, white and blue, we spit on you." we're suing all those who were responsible Johnson was arrested for violating a career was intertwined with such legends as for all those people showing up at the build Texas law making it a crime to desecrate Frank Sinatra and Dean Martin. ing." the American flag. Similar laws have been However, Mr. Curtis was best known for his Had there been a RICO statute at the passed by 47 other states and the federal tireless dedication to his fellow senior citizens time, the American Revolution might have government. He was sentenced to a year in and community. A resident of Cooper River been considerably delayed while John jail and fined $2,000. Plaza, Mr. Curtis served as president of the Adams and other attorneys tried to extri In overturning his conviction, the Su tenants' association where he firmly advocat cate members of the Committees of Corre preme Court said, in an opinion written by spondence from RICO. Justice William Brennan Jr., that the "gov ed senior citizens' rights and fought for rent Helen Cindrich has become a lot more ernment may not prohibit expression simply controls. He also remained politically active in careful about what she puts on the hot line because it disagrees with its message ... We Camden County as a Democratic leader from and in her newsletter. She is concerned, for do not consecrate the flag by punishing its Pennsauken and as a coordinator for the instance, that it may be held against her desecration, for in doing so we dilute the county's Office on Aging in Haddon Heights. July 13, 1989 EXTENSIONS OF REMARKS 14701 Jack Curtis must be praised for his never "He was a character, in the good sense of in infamy as the day when your rule was re ending talent as a hard-working entertainer. At the word,'' Maroccia said. "He had that irre vealed before the eyes of a horrified world the same time, his zest for life and commit sistible flourish; I can still picture him in as indefensible and illegitimate. ment to friendships will not be forgotten. I join his blue, sequined tux." Bella Abzug; Angela Berryman; Bruce Paradise and Maroccia agreed that wheth Birchard; Julian Bond; Frank Brod his many friends in missing him, and extend er Mr. Curtis stood in front of the crowd at head; William Sloane Coffin; Gail my sympathies to his family. the Latin, or a senior citizens' group, he just Daneker; Tom DeLuca; Gabe Ga I would like to direct the attention of my col wanted to make people smile. brielsky; Todd Gitlin; Myra Goldberg; leagues to the following article about the valu "He was a man," Maroccia said, "who Paula Gutlove; Minard Hamilton. able contributions Jack Curtis will be remem always believed the best about people and Thomas Harrison; Judith Hempfling; bered for. saw the best in life." Henry Hiz; Adam Hochschild; Doug JACK CURTIS-ENTERTAINER Hostetter; Irving Howe; Phyllis and Julius Jacobson; Ian Keith; Rob Lea
Tunnel may meet water quality standards, (C) TREATMENT OF COSTS.-Construction, water flowing from the Leadville Mine the Secretary of the Interior is authorized- operation, maintenance, and replacement Drainage Tunnel, including sludge disposal, <1) to construct, operate, maintain, and re costs of the works authorized by this Act and concrete lining the rehabilitated por place when necessary, a water treatment shall be nonreimbursable. tion of the tunnel, the sum of $10,700,000 plant, including the disposal of sludge pro (d) RESPONSIBILITY OF SECRETARY.-The