2304 CONGRESSIONAL" RECORD::,;; HOUSE March 25 Brig. Gen. Robert Hunter Clarkson, Brig. Gen. Herbert Norman Schwarzkopf. of his secretaries, who also 'informed the 0495357. 0190484. . . House that on the following dates the Brig. Gen. Robert Wesley Colglazier, Jr., Brig. Gen. Harry Hodges Semmes, 0900733. President approved and signed bills of 0223635. Brig. Gen. Henry Alden Shaw, 0166022. Brig. Gen. James Alexander Crothers, Brig. Gen. John Henry Sherburne, 0156904. the House of the following titles: 0189962. Brig. Gen. Conrad Sdwin Snow, 0400511. On March 14, 1953: Brig. Gen. Edward Courtney Bullock Dan Brig. Gen. Oscar Nathaniel Solbert, H. R. 2332. An act to place temporary limi forth, Jr., 0234688. 0224371. tations on tl).e number of officers serving on Brig. Gen. Carlton Spencer Dargusch, Brig. Gen. Albert Hummel Stackpole, active duty in the Armed Forces, and for 0246180. 0103158. other purposes. Brig. Gen. Robert Charles Dean, 0327502. Brig. Gen. Carl Ferinand Steinhoff, On March 23, 1953: ;Brig. Gen. John Ross Delafield, 0134416. 0245045. H. R. 2466. An act to amend the act of July Brig. Gen. Brice Pursell Disque, 0161274. Brig. Gen. Arthur Elsworth Stoddard, 12, 1950 (ch. 460, 64 Stat. 336), as amended Brig. Gen. Georges Frederic Doriot, 0371507. which authorizes free postage for member~ 0423479. Brig. Gen. William Miles Stokes, Jr., of the Armed FQrces of the United States in Brig. Gen. Henry Russell Drowne, Jr., 0166391. specified areas. 0136725. Brig. Gen. Frederick Smith Strong, Jr., Brig. Gen. John Bettes Dunlap, 0301107. 0414433. Brig. Gen. Ken Reed Dyke, 0510143. Brig. Gen. Carl Thomas . Sutherland, SECOND SUPPLEMENTAL APPROPRI Brig. Gen. Daniel Collier Elkin, 0397970. 0258676. Brig. Gen. Edward Arthur Evans, 0122172. Brig. Gen. John Thomas Taylor, 0114805. ATION BILL, 1953 Brig. Gen. Charles Birdsall Ferris, 0213192. Brig. Gen. Telford Taylor, 0918566. The SPEAKER laid before the IJouse Brig. Gen. Charles Lyn Fox, 0154765. Brig. Gen. Samuel Morgan Thomas, the following communication from the Brig. Gen. James Calvin Frank, 0289883. 0230963. Clerk of the House of Representatives: Brig. Gen. Michael Joseph Galvin, 0279304. Brig. Gen. Lamar Tooze, 0107927. Brig. Gen. Robert Joshua Glll, 0501560. Brig. Gen. Kenneth Castle Townson~ MARCH 24, 1953. Brig. Gen. Thomas Rodman Goethals, 0163716. The honorable the SPEAKER, 0219439. Brig. Gen. Thomas Edison Troland, House of Representatives. Brig. Gen. Harold Leroy Goss~ 0201505. 0115989. Sm: Pursuant to authority granted on Brig. Gen. Edward samuel Greenbaum, Brig. Gen. Morris Carlton Troper, 0902843. March 23, 1953, the Clerk yesterday received 0132915. Brig. Gen. Alfred Girard Tuckerman, from the Secretary of the Senate a message Brig. Gen. Robert Dinwiddie Groves, 0181648. reflecting the action taken by that body on 0129915. Brig. Gen. Elbert Parr Tuttle, 0135785. the bill (H. R. 3053) entitled '.'An act making Brig. Gen. Clement Bates Ellery Harts, Brig. Gen. Herbert Harold Vreeland, Jr., supplemental appropriations for the fiscal 0241711. 0115042. year ending June 30, 1953, and for other pur Brig. Gen. Ernest Henry Hawkwood, Brig. Gen. Frederick Marshall Warren, 0266247. . poses," and amendments thereto, which mes 0218920. sage is attached herewith. Brig. Gen. John David Higgins, 0152349. Brig. Gen. Arthur Pope Watson, 0181573. Brig. Gen. Maurice Hirsch, 0554761. Brig. Gen. Richard Seabury Whitcomb, Very truly yours, Brig. Gen. Gordon Cloyd Hollar, 0245649. 0164276. LYLE . 0. SNADER, Brig. Gen. Julius Cecil Holmes, 0107660. Brig. Gen. Lawrence Harley Whiting, Clerk of the House of Representatives. Brig.· Gen. Whitfield Jack, 0267915. 0207522. Brig. Gen. Ephraim Franklin Jeffe, 0138243. Brig. Gen. L. Kemper Wllliams, 0125140. Brig. Gen. William Rodes Jesse, 0190287. Brig. Gen. William James Williamson, MESSAGE FROM THE SENATE Brig. Gen. Bernhard Alfred Johnson, 0911246. 0166223. Brig. Gen. Thomas Bayne Wilson, 0900244. The message announced that the Sen Brig. Gen. Edwin Whiting Jones, 0105161. ate agrees to the report of the commit Brig. Gen. Kenneth Barnard Keating, tee of conference on the disagreeing votes 0901848. of the two Houses on the amendments :Brig. Gen. Henry Kirksey Kellogg, 0286132. Brig. Gen. Francis Rusher Kerr, 0232181. HOUSE OF REPRESENTATIVES of the Senate to the bill EUROPE The Department is pleased to transmit there are hereby transferred to the Secretary these respopses from the Netherlands, the of Agriculture all functions not now vested The SPEAKER laid before the House United Kingdom, and Belgium. in him of all other ofilcers, and of all agencies the following communication, which Sincerely yours, and employees, of the Department of Agri was read by the Clerk and, together with THRUSTON B. MORTON, culture. accompanying papers, referred to the Assistant · Secretary (b) This section shall not apply to the Committee on Foreign Affairs: (For the Secretary of State). (Enclosures: 1. Letter from Presidents of functions vested by the Administrative Pro DEPARTMENT OF STATE, cedure Act (5 U.s. C. 1001 et seq.) in hearing the First and· Second Chambers of the examiners employed by the Department of Washington, March 24, 1953. Netherlands States General. 2. Resolution Agriculture nor to the functions of ( 1) cor The Honorable JoSEPH W. MARTIN, Jr., of thanks by the Second Chamber.) porations of the Department of Agriculture, Speaker of the House of Representatives. ( 2) the boards of directors and otficers of MY DEAR MR. SPEAKER: On February 12, such corporations, (3) the Advisory Board 1953, the House considered and agreed to SPECIAL ORDER TRANSFERRED of the Commodity Credit Corporation, or (4) Senate Concurrent. Resolution No. 12 "That the Farm Credit Administr.ation or any the Congress on behalf of the people of the Mr. BEAMER. Mr. Speaker, I ask agency, officer, or entity of, under, or subject United States expresses its deep sympathy, af unanimous consent that the special or to the supervision of the said administra fection, and concern for the peoples of the der I had for 30 minutes tomorrow be Netherlands, the United Kingdom, and Bel tion. transferred to Thursday, April 22, fol SEC. 2. Assistant Secretaries of Agriculture: gium, whose countries have been ravaged lowing any special orders heretofore en Two additional Assistant Secretaries of Agri by disaster, its admiration for their courage in adversity, and its hope for the early re~ tered for that day. culture shall be appointed by the President, The SPEAKER. Is there objection to by and with the advice and consent of the toration of their homes and livelihoods." At Senate. Each such Assistant Secretary shall the direction of the Secretary of State, the request of the gentleman from perform such functions as the Secretary of signed originals of Senate Concurrent Reso Indiana? Agriculture shall, from time to time, pre lution No. 12 were presented by the Amer '!'here was no objection. scribe and each shall receive compensation ican Ambassadors at The Hague, London, at the rate prescribed by law for Assistant and Brussels to the appropriate ofilcials of Secretaries of executive departments. the Governments of the Netherlands, the. OLD-AGE PENSIONS SEc. 3. Administrative Assistant Secretary: United Kingdom, and Belgium. In response to the presentation of Senate Mr. TOLLEFSON. Mr. Speaker, I ask An Administrative Assistant Secretary of unanimous consent to extend my re Agriculture shall be appointed, with the ap Concurrent Resolution No. 12 by the Amer proval of the President, by the Secretary of ican Ambasador to the Netherlands, the marks at this point in the RECORD. Agriculture under the classified civil service, President of the First Chamber of the 'l'he SPEAKER. Is there objection to and shall perform such functions as the Sec Netherlands States General and the Presi the request of the gentleman from retary of Agriculture shall, from time to time, dent of the Second Chamber of the Nether Washington? prescribe. The provisions of the item num lands States General addressed to Am There was no objection. bered ( 1) of the third proviso under the bassador Chapin a message of appreciation to be conveyed to the President of the United Mr. TOLLEFSON. Mr. Speaker, I heading "General Provisions" appearing in have today introduced a bill that is de Chapter XI of the Third Supplemental Ap States Senate. A photostatic copy of this propriation Act, 1952, approved June 5, 1952 message is enclosed. signed to secure a dignified, adequate (66 Stat. 121), are hereby made appl~cable This message included the texf; of a reso old-age pension for all of our elder citi to the position of Administrative Assistant lution passed unanimously by the Second zens, and which will be uniform in all Secretary of Agriculture. Chamber of the Netherlands States General States. Every person who has been a expressing gratitude to all peoples who sent SEc. 4. Delegation of functions: (a) The citizen for 10 years or more, and has Secretary of Agriculture may from time to or offered their help to the Netherlands. reached the age of 65 years will be quali time make such provisions as he shall deem The text of this resolution is also enclosed. In response to Senate Concurrent Resolu fied to receiv·e a pension of $100 pet appropriate authorizing the performance by month. It will operate on a pay-as-you any other ofilcer, or by any agency or em tion No. 12, delivered to the United Kingdom ployee, of the Department of Agriculture of by our Ambassador, the British Foreign Sec go basis. any function of the Secretary, including any retary wrote the American Ambassador the Both political parties made the im function transferred to the Secretary by the following letter: provement of the Social Security Act a provisions of this reorganization plan. "My DEAR AMBASSADOR: My Colleagues and campaign issue. The Republicans in I were deeply touched by the concurrent (b) To the extent that the carrying out resolution of the United States Senate and their platform made reference to a pay of subsection (a) of this section involves the House of Representatives, which you were as-you-go pension system. The chair assignment of major functions or major kind enough to send me under cover of man of the Senate Finance Committee groups of functions to major· constituent your letter of the 19th February. has said: organizational units of the Department of Agriculture, now or hereafter existing, or to "The sympathy of the Congress and the It has been apparent for a long time that the heads or other ofilcers thereof, and. to people of the United States not only reaf our social-security system has reeked with the extent deemed practicable by the Sec firms . the strength of the ties which exist Inadequacy and other faults. As I see It, retary, he shall give appropriate advance between our two nations, but is a strong we will have to come to a truly pay-as-you-go public notice of delegations of functions pro comfort and consolation to my countrymen system, leading perhaps to a universal cov posed to be made by him and shall afford in this time of atfiiction. erage. "Yours sincerely, appropriate opportunity for interested per Millions of people in the United States sons and groups to place before the Depart "ANTHONY EDEN!' ment of Agriculture their views with respect The delivery of Senate Concurrent Reso are still not covered under the Social Se to such proposed delegations. lution No. 12 by the American Ambassador curity Act. In fact only about 27 per (c) In carrying out subsection (a) of this in Brussels was responded to by the follow cent of persons aged 65 or over receive section the Secretary shall seek to simplify ing letter from the Cllief of Prlitocol of the social-security pensions. The rest of and make efilcient the operation of "the De Belgian Ministry Affairs: them are either not qualified or prefer partment of Agriculture, to place the ad "Mr. AMBASSADOR: I have the honor to ac to keep on in the labor market. The ministration' of farm programs close to the knowledge receipt of the document dated number of our people over 65 is increas State and local levels, and to adapt the ad February 25, 1953, No. 793, by which Your ing. They are at an age where they can ministration of the programs of the Depa:r;t Excellency transmitted a resolution voted ment to regional, State, and local conditions. by the Senate of the United. States of Amer not do much, if any, hard work, and are SEc. 5. Incidental transfers: The Secretary ica, expressing to the Belgian people the excluded from many types of employ of Agriculture may from time to time effect sympathy of the American people after the ment . . Yet they are expected to eke out such transfers within the Department of floods which have devastated the coasts of a living on their present meager means. Agriculture of any of the records, property, Belgium. Actuarial findings of insurance com and personnel affected by this reorganiza "I have forwarded this message to the panies indicate that out of 100 men at tion plan and such transfers of unexpended President of the Chamber of Representatives, the age of 25 years, 54 of them at age balances (available or to be made available asking him tQ communicate it to his col 65 will be broke or dependent, and sub for use in connection with any affected func league of the Senate. ject to privation and worry. tion or agency) of appropriations, alloca "Thanking Your Excellency for sending tions, and other funds of such Department, me this document, I take this occasion to Our older citizens deserve our best con as he deems necessary to carry out the pro renew the assurance of my highest con sideration. We should provide an ade visions .of this reorganization plan; but such sideration. quate national pension for them which unexpended balances so transferred shall be "MoucHET BATTEFORT DE LAUBESPIN, will permit them to live their declining used only for the purposes for which such "The Chief of Protocol years with dignity and comfort. This appropriation was originally made. "(For the Minister of Foreign Affairs)." they cannot do under present conditions 1953 CONGRESSIONAL RECORD -HOUSE 2307 and most programs. Canada has adopt lation, those thousands are a grim re vestiges of colonialism having disappeared ed a national pension after years of con minder that the fight for liberty still !n the principle of compact, and we enter goes on. into an era of new developments in demo sideration of the PJiOblem. Certainly we cratic civilization." in the United States can be as forward I invite your attention in particular to the looking. · PUERTO RICO enclosed letter of Governor Munoz Marin Mr. FERNOS-ISERN. Mr. Speaker, I of the Commonwealth of Puerto Rico in GREEK INDEPENDENCE which after requesting the termination of ask unanimous consent to extend my re the transmittal of information under article Mr. DODD. Mr. Speaker, I ask unani marks at this point in. the RECORD. 73 (e) , with respect to Puerto Rico, and after mous consent to extend my remarks at The SPEAKER. Is there objection to recounting the development of the island's this point in the RECORD. . the request of tlie gentleman from political progress, he says: "The people of The SPEAKER. Is there objection to Puerto Rico? Puerto Rico are firm supporters of the United the request of the gentleman from There was no objection. Nations and this great organization may confidently rely upon us for a continuation Connecticut? .Mr. FERNOS-ISERN. Mr. Speaker, of that good will." There was no objection. on July 25, 1952, the Commonwealth of Let me add that the people. of Puerto Rico Mr. DODD. Mr. Speaker, March 25 Puerto Rico was born; the people of at this moment are proudly cooperating to marks the 132d anniversary of Greek Puerto Rico commenced living under a the utmost in the United Nations effort to independence. That day in 1821, when constitution of their own adoption; self repel aggression in Korea. The men of the Greek people threw out the Turkish government became operative in Puerto Puerto Rico who are bearing the hardships Rico. of battle with other United Nations troops invaders, sounded the death knell ·of the have, by their courage and determination, Ottoman empire. By their bravery, the This important event was the result demonstrated their strong love for freedom. Greek people exposed the myth of Otto and culmination of Public Law 600, 8lst There are enclosed for the information of man invincibility and, one by one, · the Congress, and Joint Resolution 447, 82d the members of the United Nations the fol nations of the Balkan Peninsula fol Congress. Within the terms of compact lowing documents in compliance with the lowed the example of their valiant neigh embodied in the first of these measures, terms of resolution 222 (III) of the General bors and brought liberty back to that Puerto Rico adopted a constitution and Assembly: part of the globe. organized a constitutional government; 1. Text of the Constitution of the Com the second ratified the constitution monwealth of Puerto Rico. As the news of the successful upris 2. Memorandum by the Government of the ing in Greece spread throughout the adopted by the people of Puerto Rico, United States of America. concerning the world, it served as a source of inspira subject to stipulations which were later cessation of transmission of information un tion to captive peoples everywhere. The accepted by the people of Puerto Rico. der article 73 (e) of the Charter with regard revolutions that shook South America Thereupon, the Constitution of Puerto to the Commonwealth of Puerto Rico. and forced the Spaniards to withdraw to Rico pecame effective and the Common 3. Copy of the letter dated January 17, their own land undoubtedly gained their wealth of Puerto Rico became a reality. 1953, from the Governor of Puerto Rico to Thus, for the first time in approximately the President of the United States. impetus from the Greek war of libera ,Accept, Excellency, the renewed assurances tion. 500 years of its history, Puerto Rico be of my highest consideration. Greece, the birthplace of democracy, came fully self-governing in all matters HENRY CABOT LODGE, Jr., blazed the way for the 19th century not locally inapplicable. Ambassador. movement toward the independence and Obviously, this is a matter of great the self-determination of peoples, as prestige to the United States in its posi tion of leadership with the nations of the SPECIAL ORDER GRANTED Greece has always led the crusade for Mr. ABBITT asked and was given per freedom. world. On March 20, 1953 our Ambassador to mission to address the House for 5 min . Since 436 B. · C. when democratic utes today, following the legislative pro Athens went to the aid of Corcyra, to the United Nations, the Honorable Henry . Cabot Lodge, Jr., addressed a communi gram and any special orders heretofore our own day when Greek troops · are entered. fighting against the Communist forces cation to the Secretary General of the in Korea, the people of Greece have United Nations stating, on behalf of our fought tyranny whenever it has ap Government, that the United States has CALL OF THE HOUSE peared. decided to cease reporting on Puerto Rico Mr. O'HARA of Minnesota. Mr. When Greece won her independence in as a non-self-governing area within the Speaker, I make a point of order that a 1821, the Greek Senate appealed to the political jurisdiction of the United States. quorum is not present. United States for aid. The people of This is of significance to the world as well The SPEAKER. The Chair will count. the United States, led by President Mon as to the United States and Puerto Rico, [After counting.] One hundred and roe and Daniel Webster, promptly re and I feel that this communication forty-seven Members are present, not a sponded.. This partnership in the cause should be brought to the attention of quorum. of freedom is but one of the things that ev.ery Member of the Congress. Accord Mr. HALLECK. Mr. Speaker, I move ingly, I include this communication in a call of the House. has bound the people of Greece and the CONGRESSIONAL RECORD; America. A call of the House was ordered. The men and women who came here NEW YoRK, N. Y., March 20, 1953 • . The Clerk called the roll, and the fol from Greece as· immigrants greatly en His Excellency TRYGVE LIE, lowing Members failed to answer to their Secretary General of the United Na names: . riched our land. Americans of Greek tions, New York, N. Y. [Roll No. 20] descent figure prominently in all fields of ExcELLENCY: I have the honor to refer to our national life. the United States representative's note U.N.- Andrews Gamble Moulder Barden Green Norblad In the present struggle against world 1727 /89, dated January 19, 1953, notifying Blatnik Hale PoUlson communism, we know that the people you that as a result of the entry into force Boy kin Haley Price of Greece are among our stanchest al on July 25, 1952, of the new constitution Campbell Heller Rabaut lies. Following the policies set down by establishing the Commonwealth of Puerto Cannon Hinshaw Reece, Tenn. Rico, the United States Government has de Carnahan Holifield Scrivner President Truman in his aid to Greece cided to cease to transmit information on Celler Hruska Shelley Staggers program, we shall continue to stand by Puerto Rico under article 73 (e) of the Chelf Jackson that courageous nation. In addition, let Clardy Judd Taylor Charter. Corbett Klein Trimble me assure my fellow Americans of Greek The attainment by the people of Puerto· Crosser Krueger Walter descent and the people of Greece, that Rico of their new commonwealth status Dingell Lesinski Wilson, Ind. . we here have not forgotten about the is a most significant step. This is the kind Fisher Magnuson Wilson, Tex. victims of Greece's stand against Com of progress to self-government contem Frazier Morrison Withers munist aggression. plated by the United Nations Charter. This The SPEAKER. On this rollcall 382 is the democratic pattern of the free world We shall continue to do all we can to of goals set and hopes realized. The people Members have answered to their names. bring about the repatriation of the 3,000 of Puerto Rico expressed their view by reso a quorum. Greek soldiers and of the thousands of lution at their constitutional convention in By unanimous consent, further pro 'Greek children still imprisoned behind the following words: "Thus we attain the ceedings under the call were dispensed the Iron CUrtain. On this day of jubi- goal of complete self-government, the last with. 2308 CONGRESSIONAL RECORD -HOUSE March 25 EXEMPTION FROM TAXATION OF Without objection the Clerk will again no permanent construction shall extend report the committee amendment. within the United States Capitol Grounds. CERTAIN TANGIBLE PERSONAL SEC. 2. The United States shall not incur PROPERTY There was no objection. The Clerk read as follows: any -expense 'Or iiablltty whatsoever, under The SPEAKER. The unfinished busi or by reason uf this joint resolution, or be ness is the question of passage of the Page 2, line 5, after "premises", strike out liable under any claim of any nature or kind all down to and including line 11. that may arise from anything that may be bill . time limitation would be in effect un til 6 mont hs after the terminat ion of the ciary, it was felt there should be a time kind giving rise to legal consequences and limitation upon the powers to be granted. penalties under section 794 when performed n ational emergency proclaimed on Decem during a state of war shall give rise to the ber 16, 1950. After general debate, which When the bill passed the House it was same legal consequences and penalt ies when shall be confined to the joint resolution, and limited to July 1, 1953, because there were they are performed during the period above shall continue not to ~xcee d 1 hour, to be a great number of pieces of 1egislation provided for."' equally divided and controlled by the chair involved and several members of the SEc. 5. Chapter 115 of titie 18, United man and ranking ·minority member of the cvmmittee and Members of the House Stat es Code, is hereby amended by inserting Committee on the Judiciary, the joint reso felt that some of them should be made at the end of the cha pter analysis preceding lution shall be read for amendment under the 5-minute rule. At the conclusion of the permanent and others dropped alto section 2391 of such title the following new gether. After the passage of the bill in item: consideration of the joint resolution for amendment, the Committee shall rise and the Senate, and it was considered in con "2391. Temporary extension of section 2388." report the joint resolution to the House wit h ference, the date of expiration was SEc. 6. Title 18, United States Code, is here such amendments as may have been adopted, moved up to April 1, 1953. It was felt by amended by insertin~ in chapter 115 . and the previous question -shall be consid and hoped that -prior to April 1, 1953, thereof, immediately after section 2390, a ered as ordered on the joint resolution and new section, to be designated as section 2391; amendments thereto to final passage without further study could be made of the vari as follows: intervening motion except ~me motion to ous items included to the point where "§ 2391. Temporary extension of section 2388 recommit. they would no longer be ..considered emergency items and could be either "The provisions of section 2388 of this titl e, Mr. LATHAM. Mr. Speaker. this as amended and extended by section 1 (a) dropped or made permanent legislation. rule, too~ is a 1-hour open rule; it pro (29) of the Emergency Powers Continuation In the meanwhile there has been a Act (66 Stat. 333), in addition to ·coming into vides for the consicteration of House change of administration, and a change full force and effect in t ime .of war shall Joint .Resolution 226. Whereas the in the heads of a great many of the de remain in full force and effect until 6 ·previous bill was one pertaining to the partments involved. As a result, the months after the termination of the national criminal statutes, the bill made in order DeP.artment of Defense and the other emergency proclaimed by the President on by the pending rule pertains to certain departments concerned have not had December 16, 1950 (Proc. 2912, 3 C. F . .R., civilian emergency war statutes, and .sufficient time; they believe, to prepare 1950 Supp., p. 71), and acts of the kind while the previous bill extended the time giving rise to legal consequences and penal proper recommendations to the Con ties under section 2388 when perfUnited States Army is a solution, but that solution would re covered all the facts pertinent to this in 1918, served until 1919, when he re- quire .sverqrup & Parcel, Inc.; through bill. ceived a commission as a second lieu- ARO, Inc.,-to operate the Center without I might add that the Arined Servi~es tenant in the field artillery. He at- any fee whatsoever for a period of 4 Committee yesterday, after most care tended Augsberg College ,in Minnesota months. The firm is perfectly willing to ful investigation, concluded the proper and is a graduate engineer of the Univer- do this, but there is-a much more serious thing for the House to do would be to sity of Minnesota. He subsequently aspect to the situation. As I have point repeal the rider that was placed on the served with the Minnesota State High- ed out, approximately 1,000 highly appropriation bill during the last Con way Department, the Missouri State skilled technicians and scientists have gress. · Hichway Department, and rose through been recruited. How long do you think In the 81st Congress -the House Com the ranks to become bridge engineer of we can hold these people beyond March mittee on Armed Services considered two the Missouri State Highway Department. 31, which· is the date when all funds are legislative proposals, both of which were In 1928, Jack Sverdrup founded the shut off for the payment of ARO Inc subsequently enacted into law. As a ·re firm of Sverdrup & Parcel, Inc., Mr. unless we take some affirmative action~ sult of these two laws, totai authoriza Parcel having previously taught at the reverse the action of the Congress last tions in the amount of $169,500,000 were University of Illinois and tbe University year. The Secretary of the Air Force granted for the establishment of the Air of Minnesota, and he is the author of stated to the committee yesterday that Engineering Development Center at Tul several standard engineering text books. in his opinion, we will lose a very sub~ lahoma, Tenn. Appropriations -in the Before the entrance of the United stantial number of t:tie.se highly skilled · same amount were made by the Con States in World War II, Jack Sverdrup, people unless we take immediate action. gress, in recognition of the vital part as a civilian, was engaged to lay out That is the principal reason why this bill which this proposed facility would play our air routes through the Pacific. is before the House today. In that con in our national defense program. These airfields later became the United nection I want to point out that it is Th~ ~~r Force was given primary re States air route through the war theaters impossible under the current legislative sponsibillty for the establishment and of the South and Southwest Pacific. In situation for the House Appropriations operation of this facility and proceeded May of 1942, he was appointed a colonel Committee to take action in this matter. to obtain an engineering firm which had in the Army of the United States. He The recent supplemental appropriation the capability to construct this very com~ became a brigadier general in May of bill was passed before it was realized how plicated establishment. The Air Force 1944 and a major general in January of aeute this situation ha~ really become. after considering numerous engineering 1945. He served in the Southwest Pa- Nevertheless Air Force Secretary Talbott, firms, selected the firm of Sverdrup & cific under General MacArthur through- on March 10, 1953, wrote to the chairman Parcel, Inc., of St. Louis, Mo., to prepare out the war, and I need not point out to of the House Appropriations Committee the_ plans and specifications, following this body that General. MacArthur would enclosing suggested legislation which is which the Corps of Army Engineers rep not have selected Jack Sverdrup as a identical to the bill now before us. Since resented the Government in contracting major general to command the entire it was impossible for the Committee on for the construction. Engineer Construction Command for Appropriations to act, the gentleman Having provided for the physical con General Headquarters of the Southwest from New York EMr. TABER] handed the struction involved, the next problem Pacific area if he had not been a man of proposed bill to me and has since written facing the Air Force was the manner in integrity and great capability. to me advising me of this situation and which the installation was to be oper Finally, I want to say, in behalf of suggesting that the Armed Services Com ated. Obviously a Government installa Jack Sverdrup, that he participated in mittee take such action as it deemed tion of this nature is a nonprofit oper 6 military campaigns in the Pacific for necessary. . ation and it is so complicated that none which battle stars were awarded, dur- In view of the fact that the engineer of the military services have uniformed ing which time he was awarded the ing firm of Sverdrup & Parcel, Inc., is personnel who have the technical capa Legion of Merit, the Distinguished Serv- · located in St. Louis, Mo., there may be bilities to supervise and operate a scien ice Cross, the Distinguished Service _those who do not fully understand this tific laboratory of this magnitude. As Medai, the Silver Star, and the Purple situation and who may have some feel a result, the Air Force sought a private Heart. So, let no man question his in- ing that I have initiated this action. I tegrity, or his patriotism. · want to make it crystal clear that I have firm for this purpose. Since the firm of Sverdrup & Parcel, Inc., had prepared As to the capability of this firm, I not initiated the action but have been think the fact that it has been the prin- governed ·solely by the position of the the detailed plans and specifications for cipal engineering firm in approximately Secretary of the Air Force and the fact the construction it seemed reasonable $1 billion worth of construction in the that it was impossible for the House that this firm would be well equipped to United States speaks for itself. Committee on Appropriations to con- direct and supervise this operation. Fol When the new Secretary of the Air sider the matter at this time. lowing this decision, a management cor Force was appointed one of his first acts Yesterday the full' House Committee poration known as ARO, Inc., was cre was to review this situation with refer- on ·Armed Services held a hearing on ated and it is now a wholly-owned ence to Sverdrup & Parcel, Inc., and its H. R. 4130 and after listening to and subsidiary of Sverdrup & Parcel. The subsidiary, ARO, Inc. He had the ad- questioning of Congressmen EVINS and parent corporation has furnished many vantage of other surveys and investiga- SuTTON, of Tennessee, Secretary of the of its most highly skilled personnel to tions which had been .ma.de subsequent Air Force Talbott and his Special As ARO, Inc., to insure the proper opera to the restrictive action of the Congress sistant, Mr. Garder, and General Sver tion of the facility and on the basis of last year. These included the report of drup, we unanimously reported the bill. the record to date I can find no justifica the Air Inspector General of last Decem- The Rules Committee considerately and tion for the criticism which has been ber, the report of an independent group wisely granted us a rule for its immedi made of the manner in which ARO, Inc., of scientists and educators of last De- ate consideration for unless we enact has discharged its management and op cember, and the report of last June of this legislation by next Tuesday, our eration responsibilities. tbe General Accounting Office. The national defense will suffer a severe blow Since ARO, Inc., contracted for the General Accounting Office found no evi- and millions of dollars of the taxpayers management of this facility it has been dence of fraud or impropriety on the dollars will be irrecoverably lost. responsible for the recruiting and paying part of ARO, Inc., and the other two I hope the House will follow the unani-· of the numerous highly skilled employ agencies fully supported the action of mous report of the Committee on the ees who have been recruited throughout the Air Force in employing ARO, Inc., to Armed Services, the suggestions of the the Nation and from abroad, there now · manage the Arnold Engineering Develop- Committee on Appropriations, and the being approximately 1,000 of those em ment Center. action of the Rules Committee, and will ployees. The Government reimburses The Secretary, Mr. Talbott, personally be no less emphatic in correcting an this corporation on an actual cost basis inspected the situation at Tullahoma, action which never should have occurred. and the corporation is in turn ·paid for On his return to Washington he thought The CHAIRMAN. The gentleman its services by receiving a stipulated fee that he had an interim solution . which from Georgia EMr. VINSON] is recognized. of 3% percent of the cost. Over the would not necessitate any congressional Mr. VINSON. Mr. Chairman, the· dis past 2 years and 9 months the total action prior to consideration of the fiscal tinguished chairman of the Armed Serv- gross fee paid to the corporation has 2316 CONGRESSIONAL _B.ECORD· _:_HOUSE March 25 been $118,000. Of this amount only mendous kilowatt power. You simply matter, I think it is appropriate that we $31,500 has been a net earning to the cannot operate a wind tunnel otherwise. should have a brief recital of the history corporation. Out of the total sum of You cannot operate engine-testing facili of the AEDC and of itS operations. $118,000 approximately $33,000 had to be ties without it. And this is the only The Arnold Engineering Development paid for items such as interest on .bor facility we do have of this character. Center, referred to as AEDC, is a United rowed money, to operate the plant and We captured from the Germans a super States Air.Force facility to provide test other nondeductible items, and more sonic wind tunnel. France took one of ing and evaluation of supersonic air than $53,000 has been paid in taxes to them and we took the other one, and craft. guided missiles, and aircraft en the Government. So you see that in the we moved it to this country. And we gines of all types. As a wind tunnel and final analysis the net earnings of ARO, learned how far behind we were in the jet-engine testing facility AEDC is .des Inc., for the management and direction development of these facilities. tined to become the largest facility of its of the Arnold Engineering Development Our Congress wisely adopted the policy kind in the United States; so far as we Center have been small indeed. · They of setting up these facilities for research know, in the world. represent a net fee of about $15,000 per so that we would have the most superior ARO, Inc., Arnold Research Organiza year for slightly less than 3 years of Air Force in the world, which we have tion, is a Tennessee corporation organ management services. The Secretary of today, thank God, and we cannot have ized at the request of the Air Force to the Air Force has advised us that while it without these facilities. operate the 4EDC as a contract operator. there are literally thousands of defense We do not have the technical personnel Following the recommendation of leg contracts for research and development in the Air Force to operate them. We islation to create this great center by the which are identical to or similar to the did not have it in the Government. So Committee on Armed Services of the present contract, that he knows of no we had to go out· and ask s'omebody to House, and following the enactment of other case where the management serv do this job. We went out and asked a this legislation into law. the Secretary of ices have been obtained for a fee as low reputable concern. a man of the highest the Air Force and the Secretary of De as 3 ¥2 percent. character. Unfortunately, he was at fense located this project in Tennessee So here we are, faced with this situa tacked on the floor of this House. This for a multiplicity of reasons. tion. We have authorized and are man served in the service of his country I might mention the necessity for, first, building a highly complicated research not only in the First World War but also an abundance of electric power; and, and development center which is vital in the Second World war and the record second, an abundance of patriotic labor to our national defense and for which speaks for itself. I hope that the House as being highly necessary for the suc we have already pledged almost $170 will adopt this measure speedily. and I cessful operation of this important de million of the taxpayer's funds. How certainly hope that the Senate will wisely fense installation. ever, in the wa.ning days of the last . adopt the measure; because if we do not In addition, the area is rather interior Congress, and without according a hear we are going to destroy and disintegrate in location and, therefore, is considered ing to this management firm, this body this whole force of scientific personnel, ideal for security reasons. took the position that this management and -where we will ever get them from • corporation was irresponsible, incompe again I do not know; they simply will The State of Tennessee gav:e to the tent, and wholly unworthy of the man not be available, because you cannot Air Force some 33,000 acres of land for agement of this great research facility. secure aerodynamic engineers in this this purpose-an area already devel For my part our position is wholly un country today, and that is what you have oped as the location of a former Ten tenable. I am fully satisfied with the got to have if you expect to remain in nessee State Guard campsite. subsequent investigations and hearings, a superior position in air power. This President Truman :flew to Tennessee including that by the House Committee is the heart of our air power and must 2 years ago and dedicated this great on Armed Services on March 24, 1953, continue uninterrupted. . project which is located in Coffee and that the action of the House in adopting Mr. VINSON. Mr. Chairman, I yield Franklin Counties, near Tullahoma, this restrictive appropriation rider last 5 minutes to the distinguished gentleman Tenn., in the district which I am honored year was wholly unfounded. We now from Tennessee [Mr. EVINs]. . to represent. have the opportunity to correct that Mr. SHORT. Mr. Chairman, I yield The AEDC has been progressing mistake and we should promptly do so. the gentleman from Tennessee [Mr.· splendidly since its establishment with I now yield 5 minutes to the distin EviNS] 5 additional minutes. only a few minor initial interruptions. guished gentleman from North Carolina The CHAIRMAN. The gentleman ARO, Inc., which has served as a con ([Mr. DURHAM]. from Tennessee is recognized for 10 tract operator for this project, has super Mr. DURHAM. Mr. Chairman, I do minutes. vised and aided in the growth of this not intend to take 5 minutes, because I Mr. EVINS. Let me thank the distin great center from a planned paper proj think the gentleman from Missouri [Mr. gu~shed chairman of the committee, and ect to a great cjefense installation which SHORT], our chairman, has covered this may I also commend him for the diligent is now far advanced in its development. subject well. In fact, he covered it well work which he and other members of the The importance of this installation to in the last Congress. Unwisely, this Committee on the Armed Services have the Nation's defense has been repeatedly House did not heed his advice at that put forth in the bringing of this bill to expressed by top Air Force and Defense time. the House at this time. personnel. It has been stressed by This facility is not only a wind-tunnel This measure, as the distinguished members of both political parties and facility that we have erected in Ten chairman of the· House Armed Services both administrations. ·It is a vital de nessee. We had only one engine-testing Committee has so well stated, is designed fense installation highly essential to the facility in the whole United States at to repeal a legislative rider on the ap future security and defense of our the end of this war. At the end of War propriation -act-namely, that portion country. II we were far behind in the field of of title V of the Appropriations Act of Because of the highly scientific and basic research in the fietd of speed, 1953 which relates to the restriction on technical nature of its operation the Air · supersonic and hyposonic. So we ini payment of funds to ARO, Inc., for op Force wants the project run by civilians tiated the unitary plan of wind tunnels, eration of the AEDC. under contract with the Government. so that we could coordinate this field in On Tuesday, last. the Comm1ttee on ARO, Inc., was chosen for this purpose. research and not have it scattered all Armed Services· unanimously reported A contract operation of this nature has over the country, and coordinate the and properly so--the pending bill to re been determined by the Air Force to be intensive research necessary, which in peal this existing legislation. In the the best method, the most feasible cludes physics and chemistry. The top event this legislation ban and rider is not method, for operating this great testing scientists in this field are. very hard to lifted prior to March 31 of this year the laboratory. secure and today still are very scarce and operation of a great defense installation ARO has recruited some very excel will remain so for some time. will come to a standstill. lent and skilled personnel to operate this This facility was placed in Tennessee As Representative of the district in center-scientists, engineers, and skilled for basic research for the Air Force. which this great defense facility, namely, technicians who can perform this work There were only a few places in the the Arnold Engineering Development who are not always easy to attract. It country where we could possibly place Center, is located and representative of is this personnel, which the Air Force th~se facilities, due to the fact that we the people most directly affected by ac insists, and rightly so, should not be lost, must have available immediately tre- tion which the Congress may take in this but retained. 1953 CONGRESSIONAL RECORD -HOUSE 2317 I repeat, the Air Force wants this fa partisan support; and in view of the re SHORT], now chairman of the Committee cility operated by civilians under con sults of these investigations and of the · on Armed Services, in asking that the tract. The Air Force has made this de position of the Air Force in the matter, House delete this rider from. the appro termination. I am not ·in a position to I feel that the Armed Services Commit priation bill. The reason I asked for the disagree with the wisdom of the decision tee should be commended and congratu deletion was because I believed that of the Air Force in this matter. lated for its unanimous favorable report every man should have his day in court, I should like to point out that at the of action in this connection. so to speak, and at that time, of course, time the legislative rider was adopted It is the considered opinion of the Air this corporation had not had a chance in the 1953 Appropriations Act, I stated Force that this great project--now well to present their views before any com at that time my position on the matter advanced-should not be disrupted but lflittee. There .had been several charges in debate on the floor. Not · being a should go forward. Time is of the es preferred against it, but at no time had member of the Appropriations Commit sence, gentlemen, the world situation is they been heard on these charges. For tee, I expressed the hope that no action critical. We must get on with the job. that reason I voted against the rider would be taken that would impede the Without repeal of this rider the pro we now have in the appropriation bill. progress or in any way jeopardize the gram cannot go forward at this time. Since that time, Mr. Chairman, there fullest development of this great air Not only officials of the Air Force and have been several investigations not only center located in the district which I our defense personnel, but the people of by the Air Force but by the General Ac represent. the District whom I represent are greatly counting Office and various other organi During the period of time that has concerned about this matter. We are at zations with reference to this Tennessee elapsed, extensive studies of the opera a standstill. We are witnessing here project. Everyone who has investigated tion of the AEDC and ARO have been today another example of the difficulty has given the corporation a clean bill made. We have had a new look at ARO which the Congress gets itself into when of health. For that reason, Mr. Chair as a contract operator. the Appropriations Committee endeavors man, I am wholeheartedly supporting The inspector generaJ of the Air to write legislation. ' this bill, because who am I to say that Force has made an investigation into It will ·be recalled that the Congress the Air Force is wrong and the General the situation and the inspector general recently passed another bill repealing a Accounting Office is wrong as well as the has come up with a report giving ARO a rider on the Appropriations Act affect other people who have investigated this clean bill of health. There are numerous ing the Navy Department. Here we have project? With the reputation this cor details in the inspector general's report, another rider-in this instance affecting poration has, who am I to say that they including the conclusion that ARO's or the Air Force. This provision was rec are not qualified to operate AEDC? ganization structure is essentially sound, ommended as has been stated by our Mr. WICKERSHAM. Mr. Chairman, that the educational and experience former House colleague-now Senator will the gentleman yield? background of key personnel are excel GoRE, from my State-a former member Mr. _SUTTON. I yield to the gentle lent, that the engineer-training program of the House Appropriations Committee. man from Oklahoma. was effective in building up a well-quali I should like to repeat a statement which Mr. WICKERSHAM. I think the fied and integrated work force, and that I was pleased to make on Tuesday be committee acted properly in reporting ARO's accomplishments were commen fore the House Armed Services Commit this unanimously. I appreciate the surate with the expenditure of funds un tee-namely, that I have a high regard gentleman's statement, particularly in der its contract, and that the payments for Senator GoRE, but that I certainly view of the fact that the gentleman who to ARO were not unreasonable. reserve the right to disagree with him, recommended this for the Air Force was The General Accounting Office has and I do so in this instance as this Assistant Secretary of the Air Force, also made an investigation of ARO at matter is so vital to the people whom I Harold Stuart, of Oklahoma. I appre the request of the Armed Services Sub represent and so vital to the Nation's ciate his name being cleared, too. committee of the House Committee on defense. Mr. SUTTON. I appreciate the re Appropriations. Although the report I repeat, time is of the essence. I trust marks of the gentleman from the Com points up a few questionable items that the House will vote favorably and mittee on Armed Services. We appre rna tters in the realm of opinion and adopt the pending bill in order that we ciate the fact that the Air Force brought judgment--the conclusions reached are may lift and repeal this restrictive legis this great project down to our State of that there was no illegality and no lative rider. Let us remove the uncer Tennessee, when it was first allocated. wrongdoing, and further, that there was tainty which exists with respect to the Mr. Chairman, in answer to the ques no evidence developed which would in future of this most vital and importan~ tion my distinguished colleague from dicate that there were any actions taken defense installation. · the Fifth District of Tennessee asked in connection with the project under any Let us pass this bill and go forward. my colleague from Tennessee [Mr. condition other than proper motives. Mr. PRIEST. Mr. Chairman, will the EVINS] about what the results· would be In other words, the Comptroller Gen gentleman yield? should this bill not be passed, I believe eral and the GAO also gave the operation Mr. EVINS. I yield to my colleague, that we would lose at least 1,000 tech a clean bill . of health-and, as we all the gentleman from Tennessee. nicians from the project that we now know, the GAO is very effiCient and it is Mr. PRIEST. Will my colleague state have. The type of technicians we have difficult for any operation to successfully what, in his opinion, the situation would at AEDC cannot be replaced ·by the aver pass the surveying eye of a General Ac be in case this contract under the pro age man on the street. They are scien counting Office investigation. vision becomes invalid as of the end of tists. Once we lose them they are gone In addition, a civilian industry and this month? and they are difficult to replace. This, education advisory board-a nonprofit Mr. EVINS. The morale factor would plus the fact that there are many mil civilian board-has on two separate oc be very bad. For some time there has lions of dollars the Government would casions had an investigation and evalua been a great deal of uncertainty in the lose, plus the fact that the project would tion of the· performance of ARO as a area of the center as to whether or not be set back several months, when it is contract operator. And, in each in 'the life of this organization is to be con needed so badly in our defense program. stance, this civilian advisory board has tinued. Many highly skilled personnel I hope the committee and the. House also given ARO a clean bill of health have been recruited for this work, and will go along with the Committee on and has reestablished the position of the if they are not to be paid we will lose Armed Services and the Committee on Air Force in this rna tter. the services of many skilled technicians Rules and we who have looked into the The· previous Democratic administra and scientists and others. The project matter and support this bill wholeheart tion recommended ARO as a responsible would be set back and, I feel, its growth edly. contract operator in this connection. and progress impaired. Mr. SHORT. Mr. Chairman, I yield The new Republican administration Mr. VINSON. Mr. Chairman, I yield 5 minutes to the gentleman from Cali has taken a new and fresh look at the 5 minutes to the gentleman from .Ten fornia [Mr. JOHNSON]. entire situation, and the Republican ad nessee [Mr. SUTTON]. Mr. JOHNSON. Mr. Chairman, this ministration is also recommending the Mr. SUTTON. Mr. Chairman, the bill has been explained very thoroughly continuance of ARO as a contract opera only thing I would like to say is that and very convincingly, especially by our tor for this.important defense facility. some 10 months ago when this rider was chairman the gentleman from Missouri It thus appears that this operation before this body, I joined the distin [Mr. SHORT]. I want to emphasize one has been amply investigated and has bi- guished gentleman from }4issouri [Mr. or two things that have been touched· on 2318 CONGRESSIONAL RECORD -HOUSE March 25 and one thing that has not been nessee in the ARO, project have any and do the work and hire the people and touched on in this discussion. uncertainty about the continuation of pay them, and we in Congress would give Let me emphasize, as others have, the this project, they will go back to private them a lump-.sum appropriation. It fact that this is another g-ood illustra- industry or go back in the educational may be a good thing. I am going to tion of the futility of putting riders on field. Just yesterday I talked to a man, vote for this repeal, but I am just telling appropriation bills. When these riders an engineer, and he pointed out to me you that we are taking a significant step, are placed on appropriation bills they that industry is searching the country although perhaps a necessary step. The have not been adequately covered by over for scientists. They are 25 percent issue raises a policy question. For that hearings. What sounds like a plausible short of scientific men whom they need reason, I thought the matter ought to be explanation of the situation and a pla - for the development of industry. He studied by the legislative Committee on sible answer to the problem, in the form was talking to me about a bill to screen Armed Services rather than be handled of a rider, has met us Iace to face three that type of manpower in the event they as a rider on an appropriation bill. times in this Congress already. In each were taken into the armed services. So I Under the contract system there will case legislation was required to remove would like to stress as much as I can that be no ceiling on salaries at the facility the bad effect of the rider. It shows if we want to retain the superior air except as provided in the contract. The that we should not permit these riders . power which is ours today, and make it head of ARO can draw more money than · to be tacked onto these bills without still greater, and make America still the Secretary of the Air Force or the prior hearings of the problem, at least more secure, we will pass this bill and President of the United States, as far as by one of the legislative committees. allow this project to have the continuity that is concerned, unless there is some One thing that I think has not been which will make it a success. For the restriction in law or in the contract of referred to here and that might be of life of me, I cannot understand why the which I do not know. interest to the Members is the lurking rider was passed. No witness appeared Mr. SHORT. Mr. Chairman, will the idea of some Members that I talked to in any hearing in any phase -of this gentleman yield? who have not read the hearings that problem who testified that something · Mr. MAHON. I yield to the gentle this great project we are talking about wrong, or illegal, or crooked· had been man from Missouri. might be a duplication, in part, of simi- done. Yet now they propose to cut this Mr. SHORT. Of course the president lar facilities somewhere else. We have project off at the pockets, which could of ARO is serving without pay. He them at Langley Field, we have the great · kill the most fantastic project of its kind draws no salary whatever. While I Ames Laboratory in California. It was in existence. agree with the gentleman that each my thought that perhaps there would be Mr. VINSON . . Mr. Chairman, I yield branch of the armed services usually a duplication of the work done in those 5 minutes to the distinguished gentle conducts its own work, the gentleman laboratories. I asked several of the gen- man fr9m Texas [Mr. MAHON]. is well aware of the fact that because tlemen testifying whether there was any Mr. MAHON. Mr. Chairman, this bill of the peculiar nature of this project, duplication of this project in any simi- provides for the repeal of a rider which the highly technical aspects of it, not lar installation in the United States and was attached to the military appropria only the Air Force but no branch of the they all answered emphatically there tion bill last year. I agree with the great armed services, no branch of the Gov was not. As the gentleman from North majority of the Members of the House ernment is capable of carrying out this Carolina [Mr. DuRHAM] explained, this that usually these riders-far-reaching research and development work. is a supersonic wind tunnel. There is riders on appropriation bills-are a mis Mr. MAHON. That may be true. The nothing like it in the ·United States; take. I think this matter, which is be gentleman has made a greater study of perhaps not in the world. We are lucky fore us today, should have originally been the problem than I have and I have we have it. handled by the legislative Committee on great respect for his judgment. I be The great symbol of power today in Armed Forces. In my judgment, the lieve General Farrell is now being paid the world in the military field is air House made a mistake in adopting the $30,000 as the top man on this project. power. That is the symbol in the Navy, rider. Mr. SHORT. Yes. There was one and it is the symbol in the Air Force. I doubt that all Members of the House salary of that amount, but the president If we can keep this operation going, it understand what we are doing here today .. of ARO is serving without pay. means that the air superiority we are because I doubt that all Members have Mr. MAHON. But the man who runs hoping to attain very shortly will be had an opportunity to familiarize them that laboratory gets $30,000 a year. ours, and our protection will be that selves with the situation. Many Mem Mr. SHORT. He gets $30,000, and he much· greater. All of you have heard . bers will recall the controversy over this could get $60,000 if he were in private the comments by the Chief of the Air tt industry. Force many times that in some types of rna er last year· I do not recall all the details of the ARO controversy, but I Mr. MAHON. I know that General planes we are losing 0~ superiority. have no disposition to question the good Farrell is a highly capable man. I am The y;a~ ~ keep and _mcrease that faith of anyone. The Air Force, the not saying that he should not get it, but ~uperwr~ty IS to ~eep this treme;ndous Army, and the Navy have generally run what I am saying is that the contract ~~tallatwn dow;n m Tennessee gomg as • their own installations in the past. This holder is footloose and fancyfree to It Is now operatmg...... is the first and only major departure in hire any people he wants to hire and pay What would happen if the proJect IS the Air Force of which I know. This is them any salary he wants to pay. It is a_bandoned, has be_en asked here seve_ral the situation: The Air Force makes a wholly up to the discretion of the Air . times. Let me pomt out that foll?wmg contract with a private concern called Force in negotiating the contract,· and the_ World War we had som~ very m_ter- ARO to run the installation, ARO pro the Congress does not get into the pic ~stmg and ra~her exhau~t~ve hearn~gs viding the personnel and management. ture except in providing a lump-sum ~~ the Coml!ut~e on Military Affairs . We have established overall personnel appropriation for operating the plant. with some sCientist~. Th~y thought t~e ceilings in an effort to try to· reduce Of course, Congress can control the developmen~ of sc~ence m the atonuc civilian personnel in the Armed Forces, lump-sum appropriation. If we ran all field was gomg to Wither away, and t~ese but ARO personnel will not be affected our Federal installations that way it men came all the way from Alamog~Ido, thereby. These people will not be added would change the picture. You could N. Mex., to appear. before our c~mmltt:_e to the list of people who are on the take half a million people off the payroll and try to emphasize to us that if we dia Federal payroll. From now on you will of the Government today by appropriat n~t l~y down a progra:m where these find that in the list of personnel on the ing a lump sum and contracting with sment1sts could lo_ok at It and see there · Government payroll thousand of p 1 industry to run the v~rious facilities. was an opportumty for them to carry . . s eop e That might be a good thing. I am just on their scientific studies and researches w~o Will be e~ployed at this laboratory raising the question of broad policy of and make their contributions, scientific Will not be list~d as ?overnment per government which is involved. research would wither and die. There sonnel. They will be hidden, so to speak. Mr. DURHAM. Mr. Chairman, will were a group of them there following the I do not mean hidden in a di..shones·t the gentleman yield? · hearing and during the hearing on the way, but they will be hidden. If the Mr. MAHON. I yield to the gentle atomic-control bill. Scientists, so they Air Force should run the machine shops man from North Carolina. . tell us, are a sort of odd, temperamental and other large and complicated facili Mr. DURHAM. The point that the J;)eople, and if these people down in 'Ten- ties by contract, industry would get out gentleman stresses is the fact of how 1953 CONGRESSIONAL RECORD -HOUSE 2319 you are going to operate these facilities. must be made. This uncertainty as to and some of them not too practical as I have high respect for the gentleman's the future operation of this installation businessmen, and they look for a posi opinion, but we are faced with this cannot be continued. tion where their thoughts will be free situation= how to operate this highly Mr. MAHON. I cou1d not say, with for them to devote themselves entirely technical tool with men · who can de certainty. It could be that a private op- to technical things on which they are mand and get twice as much salary as eration would be cheaper. The principal working. .It has proved successful in we can pay. question which I raise is one of policy. connection with .atomic energy. I hap- Mr. MAHON. The gentleman raises Mr. EVINS. It would be a more cum- pen to serve on that committee as weu · .a valid point. Of course if we should de bersome operation, and they would have as on the Committee on Armed Serv termine that the contract policy is to have the same type of men running ices. wrong we should have the courage to it. Now, this idea, that they could pay raise the pay of highly qualified person Mr. MAHON. That may be. I felt anything they want, I do not believe is nel in the Air Force. that the policy question should be raised. quite correct. The contract is nego Mr. DURHAM. I might point · out .I shall vote to repeal the rider. tiated every year. It is true it is based something that happened this morning. Mr. DURHAM. Mr. Chairman, I y~eld in ·ref.erence to what the future expendi- A boy has been hired by industry. Just the remaining 2 minutes of my time to tures of operation might be, on what was this morning they hired him at twice the the gentleman from Texas [Mr. KILDAY]. .required for operating the previous year, salary we pay here. I do not know how Mr. SHORT. Mr. Chairman. how but the contract is subject to renego- we are going to replace him. What are much time have I remaining? tiation. After the money is paid the we going to do? We are operating the The CHAIRMAN. The gentleman Government still has the opportunity to atomic energy plant practically on the from Missouri has 4 minutes remaining. recoup for any excess profits or for any basis on which we are operating this. Mr. SHORT. · Mr. Chairman, I yield extraordinary or extravagant expendi Are.you going to let the Army, Navy, and the remainder of my time to the gentle- tures. So that there is definite control Air Force take over the scientists of the man from Texas [Mr. KILDAY]. on the part of the Government. country and try to conduct this basic Mr. KILDAY. Mr. Chairman, I rise Mr. PRIEST. Mr. Chairman, will the research? If you do, you will be making in support of the resolution :pending be- gentleman yield? a most clossal failure. fore the Committee. Mr. KILDAY. I yield to the gentle- Mr. MAHON. I have merely raised a In the first place 1 think we should · man from Tennessee. point which I thought should be raised remember that this is a contract nego- Mr. PRIEST. I appreciate what the in connection with this bill. I hope the tiated by the previous administration; gentleman said, particularly with refer committee has made the proper de that .since the. new administration has ence to the question of a contract that termination. taken over it has been reviewed in great must be negotiated annually. Is there Now. let us face the facts. detail. any other provision other than the re- After ARO has run this multimillion Mr. Talbott, the present Secretary for negotiation approach whereby the dollar project fpr, let us say, 5 years, it Air, appeared before our committee, as Armed Services Committee of the House will have an undue advantage over the did his chief of research and develop- or the Senate would have any opportu Government when contracts are renewed ment, or whatever his title may be. They nity to know anything about the details from time to time. I think the point is reviewed the contract as it had been of an annual contract before it is nego obvious. The Government could hardly made by their predecessors. I do not tiated without having to resort later, if refuse to renew the ARO contract be believe it would be necessary to con- necessary, to the question of renegotia cause there would be no other qualified vince anyone that they had no reason tion? bidder. I hope the Armed Forces Com: to justify the contract made by their Mr. KILDAY. I do not know that mittee has thoroughly explored this as predecessors. There are but a few there is any provision that would apply pect of the matter. On the face of the sources to contact for services such as to a contract of this kind. In connec thing it would seem that the Government this, pure research, organizations such tion with the reactivation of a plant and would soon lose much of its bargaining as Westinghouse, General Electric, and a contract then being entered into ~or power. other great research organizations of the operation, it would have to be resub Mr. DURHAM. Just at that point, the country. They had been original sup- mitted. But you do have direct control NACA has been running other facilities. pliers in the building of this institution, of renegotiations in connection with it. Mr. MAHON. The NACA . has been and it was not thought they should re- Mr. Chairman, this is a highly impor running its own facility. ceive the contract. In any event, they . tant matter. It was testified before our Mr. DURHAM. That is a Government endorsed the contract. -committee that so far as is known this is facility run by a civilian agency, it is not I will agree with my colleague from the only installation of its kind in the an Army agency installation. Texas that on the policy of contracting world. There is nowhere else in the Mr. MAHON. That is right. I would not agree that it would be a world an organization of this kind for Mr. DURHAM. And it has done a good policy to contract for standard research and development in connection good job. You could bring it under Gov ·services such as repair, maintenance, with aircraft. Some of the machinery ernment operation and build up one of and thirigs of that kind; but when it there is at least twice as large as any the most colossal Government agencies comes to basic research you have an thing of a comparable nature known to in this country, but the whole theory of entirely different question. I do not exist anywhere else in the world. this thing is to bring private enterprise know how you are ever going to get We have here a provision which cuts into this picture so we can get some ef men qualified in basic research who off the money for ARG> on the 31st of ficiency and not run into all these dead would be willing in the first instance March. You have $100 miEion invested. ends. to work at Government salaries when There is not a single word in this pro Mr. MAHON. That may be the way to so much better salaries are available to vision as to what you are going to do get it, and it could be that we should them in industry, and the great advan- with that $100 million 1,1:ant. Are you fully explore the possibility of running tage to these scientists of being con- going to close it up and disband the many of our military installations on a nected with the large engineering or- personnel and have no way to operate or contract basis with private industry. ganizations, such as in this case now manage something so highly essential to Mr. EVINS. Mr. Chairman, will the being used by that organization in the the aviation industry and to the progress gentleman yield? case of ARO, <>r being connected with of these supersonic speeds? I think it Mr. MAHON~ I yield. Westinghouse working on .a Government is highly essential that the House take Mr. EVINS. The gentleman has had contract even for a subsidiary corpora- action to remove the restriction which extensive experience with appropriations tion. Tile moment they .secure connec- was placed in an appropriation bill. I for defense. Does the gentleman feel tion with a great nationwide organiza- will not belabor the :point of passing re that if this installation were run by the tion their career is fixed; they know strictive provisions or substantive legis Air Corps it would be more economical that their career is stable and that· if l~tion on appropriation bills where they or that it would cost more money? this one thing should ever play out there are offered on the floor .of the House and Please understand that it would be per is other work available. ~onsidered under a very limited time for sonally satisfaetory with me for the Air It was testified that many of these debate, with no opportunity for the com Force to run this base, but some decision highly skilled men are t~mperamental mittee to develop the facts. XCIX-146 2320 CONGRESSIONAL RECORD -HOUSE March 25 I think the main thing here is that adequacy of law and regulations to assure parts of the announced policy regarding the faithful performance of trust in the ex Indians, a complete and full study of the administrations have changed. An en change, lease, or sale of surface or subsurface tire new administration of the Air Force subject must be made. This is not an interests in or title to real property or dis investigation. There is no witch-hunt has come in. The new Secretary of the position of personal property of Indian Air Force has had no responsibility for wards. type of thing involved in this resolu issuing the contract and now he whole The committee shall report to the House tion. It is a study of a problem which heartedly defends the contract as made (or to the Clerk of the House if the House has faced this country for some years, by his predecessors. That is a very is not in session) as soon as practicable and which must be resolved. wholesome thing, in my opinion. I was during the present Congress the results of At the present time there are approxi very glad to see that these gentlemen its investigation and study, together with mately 300,000 Indians in this country. such recommendations as it. deems advis We are presently employing 12,000 peo who have taken over from our Demo able, including (1) a list of the tribes, bands, cratic administration were objective· or groups of Indians found to be qualified ple to administer their affairs, at an about it and that they recognize the wel for full management of th~ir own affairs; (2) annual cost of some $83 million. It is fare of the country requires this provi legislative proposals designed to promote the vital not only that this expense be sion be removed. I hope it will be with- earliest practicable termination of all Fed stopped but that as many of thes~ peo eral supervision and control over Indians; ple as possible be given their full and out delay. .-J The CHAIRMAN. All time has ex ( 3) a listing of functions now carried on by free citizenship in this country. . the Bureau of Indian Affairs which may be The pending resolution also directs the pired. The Clerk will read the bill for discontinued or transferred to other agen amendment. cies of the Federal Government or to the Committee on Interior arid Insular Af The Clerk read as follows: States; ( 4) names of States where further fairs to make a full and complete "inquiry into land transactions involving lands Be it enacted, etc., That so much of title operation of the Bureau of Indian Affairs V of the Department of Defense Appropria should be discontinued; (5) recommended belonging to Indians. During 1951 some tion Act, 1953 (66 Stat. 530), as reads: legislation for removal of legal disability of transactions in Indian timberlands in "Provided, That no part of such appropria Indians by reason of guardianship by the the State of Oregon and Washington tion shall be used to make any payment to Federal Government; (6) findings concern appeared to be irregular, to say the least. ARO, Inc., for operation of the Arnold Engi ing transactions involving the exchange, It is important that complete informa neering Development Center after March 31, lease, or sale of lands or interests in lands belonging to Indian wards, with specific find tion regarding those transactions, or 1953, unless Congress shall have directed similar deals in other States, be obtained. otherwise," is hereby repealed. ings as to such transactions in the States of Oregon and Washington. Practically the same resolution has The CHAIRMAN. Under the rule, the . For the purpose of carrying out this reso been introduced by the gentleman from Committee rises. lution, the committee or .subcommittee is Washington [Mr. WESTLAND] and was Accordingly the Committee rose; and authorized to sit and act during the present sponsored in the last Congress by the the Speaker having resumed the chair, Congress at such times and places within gentleman from Ohio [Mr. Bow]. the United States, its Territories, and pos Mr. NICHOLSON, Chairman of the Com sessions, whether the House is in session, has Mr. Speaker, .I now yield 30 minutes mittee of the Whole House on the State recessed, or has adjourned, to hold such to the gentleman from Virginia [Mr. of the Union, reported that that Commit hearings, and to require, by subpena or SMITH]. tee, having had under consideration the otherwise, the attendance and testimony of Mr. SMITH of Virginia. Mr. Speaker, bill to amend title V of the such witnesses and the production of such the Committee on Rules reported this Department of Defense Appropriation books, records, correspondence, memoranda, resolution unanimously. We thought it Act, 1953, so as to permit the continued papers, and documents, as it deems neces might present an opportunity to save us sary. Subpenas may be issued under the use of appropriations thereunder to make signature· of the chairman of the committee some money. payments to ARO, Inc., for operation or any other member of the committee des I have no desire to consume any time of the Arnold Engineering Development ignated by him, and may be served by any discussin& the resolution, and yield back Center after March 31, 1953, pursuant to person designated by such chairman or my time. House Resolution 187, he reported . the member. · Mr. ELLSWORTH. ' Mr. Speaker, I bill back to the House. With the following committee amend- move the previous question. The SPEAKER. Under· the rule the ments: · The previous question was ordered. previous question is ordered. The resolution was agreed to. The question is on the engrossment Page 2, line 24, after "wards", strike out "with specific findings as to such transac A motion to reconsider was laid on and third reading of the bill. tions in the States of Oregon and Wash the table. The bill was ordered to be engrossed ington." and read a third time, and was read the Page 3, line 4, strike out "its Territories, TENNESSEE VALLEY AUTHORITY third time. and possessions." The SPEAKER. The question is on Mr. BAKER. Mr. Speaker, I ask the passage of the bill. The committee amendments were unanimous consent to extend my re The bill was passed. agreed to. marks at this point in the RECORD. A motion to reconsider was laid on the Mr. ELLSWORTH. " Mr. Speaker, this. The SPEAKER. Is th.ere objection to resolution is practically identical in every table. the request of the gentleman from way to a resolution which was passed by Tennessee? this House in June of last year. The BUREAU OF INDIAN AFFAIRS There was no objection. investigation authorized and directed by Mr. BAKER. Mr. Speaker, I have in Mr. ELLSWORTH. Mr. Speaker, by the resolution passed at that time was troduced a bill to amend section 8 (a) of direction of the Committee on Rules, I begun by the House Committee on In the Tennessee Valley Authority Act of call up House Resolution 89 and ask for terior and Insular Affairs, but no hear 1933 so as to provide that the Tennes its immediate consideration. ings were held, and the report made by see Valley Authority shall continue to The ·clerk read the resolution, as fol the committee, while it is ah excellent maintain its principal office at Knoxville, lows: volume, is very little more than a cata Tenn. Resolved, That the Committee on Interior log of the statistics concerning Indians My proposed amendment to the act and Insular Affairs, acting as a whole or by and the Indian problems; which are reads as follows: subcommittee, is authorized and directed to stated. conduct a full and complete investigation The Secretary of the Interior .recently SEc. 8. (a) The corporation shall maintain and study of the activities and operations gave an expression of his views on the its principal office in the immediate vicinity of the Bureau of Indian Affairs with refer- of Knoxville, Tenn. The corporation shall . ence to (1) the manner in which the Bureau various problems involved in adminis be held to be an inhabitant and resident of Indian Affairs has performed its func tering the affairs of the Indians. One of of the eastern judicial district of Tennes 'tions of studying the various tribes, bands, the paragraphs in that statement reads see within the meaning of the laws of the and groups of Indians to determine their in part as follows: United States relating to the venue of civil qualifications for management of their own Federal responsibility for administering suits. affairs without further supervision of the the affairs of individual Indian tribes should Tennessee Valley Authority was cre Federal Government; (2) the manner in be terminated as rapidly as the circum which the Bureau of Indian Affairs has ful stances of each tribe will permit. ated as a corporation by the Congress on filled its !)bligations of trust as the agency May 18,1933. The stated purpose of the of the Federal Government charged with the In order to prepare the legislation act was to maintain and operate the guardianship of Indian property; (3) the necessary to carry out that and other properties then owned by the Umted 1953 CONGRESSIONAL RECORD -HOUSE 2321 States in the vicinity of Muscle Shoals, TVA is logically associated throughout principal balances at the rate of 4 perceztt Ala., in the interest of the national de the Nation with the State of Tennessee, per annum during said 4-year period. fense and for agricultural and industrial although it serves a seven-State area. It is further provided that in addition development. and to improve naviga The reason for this association is -a;p to the base monthlY rental specified, TVA tion in the Tennessee River and to con parent from the following :figures. shall pay all ad valorem taxes and trol the destructive :floodwaters in the There are 14 major TVA dams in assessments 1awfully levied against the Tennessee River and Mississippi River Tennessee; and only three in Alabama. premises and premiums on insurance basins. The two new dams under construction and shall maintain the premises in good The act provided that the corporation are in Tennessee. and tenable repair. .should be held to be an inhabitant and There are 6 major TVA stieam plants It is further provided that at ariy time resident of the northern judicial district in Tennessee and 3 under construction; during the term -of the lease, TVA shall of Alabama. However, Tennessee Valley only 2 steam plants in Alabama with 1 have the option to purchase the leased Authority has always maintained its under construction. premises. the base purchase price being principal offices at Knoxville, Tenn. Eight hundred and sixty-five thousand placed ~t $3,720,000 plus that part of the On March 19, 1953, the general man customers are served by TVA electricity cost of the site, if any, which is in excess ager of TVA at Knoxville announced in Tennessee through municipalities and of $26,000, not to exceed $34.000, less such to a committee of the Knoxville Cham cooperatives; only 143,000 in Alabama. part thereof as bas been amortized by ber of Commerce that the TVA board of The income by TVA from power reve TVA's base rental prerniwns. directors and managerial staffs now lo nues in the calendar yea r 1952 in the In the event tbe option to purchase is cated in Knoxville and Chattanooga will State of Tennessee was $72 million; in not exercised until the end of the term of move to Muscle Shoals about 18 months Alabama, $1.5 million. the lease, the property shall be conveyed fr.ml now and that about 500 office em The vet TVA plant investment in to TVA upon expiration of the !ease and ployees will make the transfer. power facilities as of June 30. 1952. in payment of the final base rental install The general manager further stated Tennessee was $477,273,095; inAlabama.· ment. that a .lease has been arranged for an $157,725,455. The agreement contains the following office building which is to be erected At the time TVA took over the Gov provision~ adjacent to the Wilson -Dam Reserva ernment reservati-on at Muscle Shoals, The lease shall contain a provision that it tion, which will be completed in the sum Ala., I am informed that there wel'e shall be deemed to contain, as if fully set mer of 1954. That the following offices about 200 dwellings on· the property. In forth herein, all the provisions required by will move from Knoxville: Board of di 1950 these dwelling houses were declared section 104 of the Renegotiation Act of 1951 .. rectors, general manager, and the head surplus by TVA and sold at public auc In addition to urging passage of the quarters of the divisions of finance, law, tion for something over $100,000, with bill, which I have introduced, I shan ask personnel, agricultural relations, l·e the requirement that the houses be the Appropriations Committee to incor gional studies, and reservoir properties. moved off the Government property, porate in the current appropriations bill Moving from Chattanooga will be head which was done. at the appl'opriate _place in connection quarters office of the division of health I requested the Tennessee Valley Au with the TVA current appropriation sub and safety, with abol.lt 35 employees. thority -to furnish me with a copy of stantially the following language: Thus, it will be readily seen ~hat ~f whatever contl'act Ol' agreement they in Provided, however,. no part of the funds this plan is carried into effect approxi had respect to the proposed new office herein appropriated or any corporate funds mately 500 families who have been resi building at Muscle Shoals, Ala. A copy of Tennessee Valley Authority shall be used dents of Knoxville, Tenn., for many of this agreement has been furnished to for the purpose of defraying the cost of mov y-ears, and most of whom: own their me by TVA. ing the administrative omces of Tennessee homes in Knoxville, will be required to The agreement bears date, March 10, Valley Authority from Knoxville, Tenn., or move to Muscle Shoals, Ala. 1953, and is between Wallace S. Pitts.. for the payment of rental of a proposed new · _It was announced that the contem Sr., and TVA. office building not yet erected at or near plated office building would be a 7 -story Its pertinent provisions are that TVA Muscle Shoals, Ala. structure containing 120,000 square feet proposes to declare surplus 30¥.! acres of of usable space, and that the lease would land located in Colbert County, Ala., a MAPLE SIRUP te for 20 years with TVA holding an op part of the Wilson Dam Reservation, tion to purchase. and that Pitts, the contractol', proposes Mr. MARSHALL. · Mr. Speaker, I ask The announcement by John Oliver,· to bid personally, or through a om·pora unanimous consent to extend my re the general manager. contained the fur tion to be formed by him. for said site marks at this point in the RECORD. ther provision: at the auction sale an initial bid $26,000, The SPEAKER. Is there objection to and in the event of other bids to con the request of the gentleman from TVA will do everything it can, within the Minnesota? limits of lts a:.tthority and consistent with tinue to raise the bid in an amount not sound management, to help employees get to exceed '$60,000. Then in the event There was no objection. relocated. TVA will work· with the Muscle Pitts becomes the owner of this piece of Mr. MARSHALL. Mr. Speaker, ever Shoals community to get school, transporta land, he proposes to el'ect thereon an since the Indians along the shores of tion, and other facilities expanded if neces .. office building for occupancy by TVA. Mille Lacs Lake taught the early Minne sary. Decisions on housing, of course, must sota settlers to make maple sirup, the .finally be made by each .individual. Section 4 of the contract provides that sap run has come to be one of the first Pitts shall cause to be formed an Ala .signs of spring in our State. I respectfully sul;>mit that there is no bama corporation and it is contemplated justification for this action. These peo that the financing of the erection of the This week Members of the Minnesota ple are citizens of Knoxville, Tenn. They office building will be with New York Life delegation received a welcome reminder have always engaged in community and Insurance Co. and certain banks in Ala of the maple sirup harvest-a bottle of welfare work such as Red .Cross drives, pure maple sirup from the Holbert Bros., bama. · The building is to be leased to of Onamia, Minn., in my district. Community Chest and educational pro TVA for a term of 20 years. g!"ams. They own their homes and wou~d The agreement provides that- Attractively packaged as Old Grand have to sell their homes at a great sacri Mom, this sirup represents the finest TVA will pay a base rental in equal quar skills of old and new methods of bring fice if 3QO or 400 homes were placed on terly installments 1n such amount as wlll. the market at about the same time. during the 20-year term of the lease- ing a great natural product to the dinner The school plants of the city of Knox 1. Will amortize a principal sum of $.3,- table. Since the Indians first boiled the ville and of Knox County have been en: 140,000 (p1us ~hat part of the cost of the sap gathered from the maple forests larged and vast sums of money spent .to site, if any, which is 1n excess of $26,000, while the snow is still deep to quicken take care of the education of the chil but such excess for this purpose shall not· the flow, modern science has blended dren of these welcome employees of be more than $34,000; with age-old experience in improving na 2. P~y interest on unamortized principa1 ture's valuable food. ·. TVA. balances at the rate of 4 percent per annum; During my visit to the Department of It is certainly not i.n the interest of provided, that during the :first 10 years of national defense to create an acute hous lease term, the base quarterly rental pay Agriculture's Northeast Regional Labo ing shortage at Muscle Shoa1s, Ala., and ments shall be uniformly increased by such ratory in Philadelphia with the agricul to require the building of 500 homes and amount as will amortize a principal sum of ture appropriations subcommittee last the enlargement of educational facil~ties. $580,000, and. pay interest on unamortized weekend, I was pleasantly surprised to 2322 CONGRESSIONAL RECORD -HOUSE . March 25 nent our price-support program. These depleting our agricultural resources and pro find this product from my district held ductive capacity; and up as a prime example of the latest in recommendations are worthy of the se Tenth, recognizing that as a strong Nation maple-sirup making. The experts re rious consideration of every Member of we must have food to win and hold allies, gard it as a fine demonstration of what the Congress since this 11-point program to provide that when farm products are can be done to bring the enjoyment of is prompted by firsthand knowledge of purchased for such use the farmer should pure maple sirup to more and more the farm situation at home. not get less than the suppot:t price; and Resolution 5 Eleventh, providing for adequate crop stor people. age facilities so that the loan program is I was shown maple-sugar cubes from Joint resolution memorializing the Presi freely available to all farmers; the Holbert Bros. which bring the es dent,. the Secretary of Agriculture, and the All to the end that agriculture may con sence of the sap gathered in the maple Congress of the United States to support tinue to meet the ever-increasing food de forests into concentrated form without measures promoting fair prices for agri mands of our Nation, without jeopardizing losing the rich, natural flavor and sweet cultural commodities in the n~;~.tional in the farmers' economic position; and be tt ness. Modern methods and a . natural terest further Whereas the continuing upward trend in Resolved, That the secretary of state of product combine to make Minnesota's farm-operating costs and the downward trend the State of Minnesota be instructed to maple sirup the equal of the finest pro in farm prices threaten acute distress to transmit copies of this joint resolution to duced anywhere. farmers in this area; and the President of the United States, the Secre The maple-sirup industry is unique to Whereas the Government has again called tary of Agriculture, and to each Member of the American Continent and from its be on farmers to meet huge production goals Congress from the State of Minnesota. ginnings in early New England it has in the interest of the national defense and JOHN A. HARTLE, been carried on in family traditions. In welfare, and to build up surpluses of food in Speaker of the House of Representatives. the national interest which in the absence ANCHER NELSEN, my district people everywhere in the of further supporting action wm depress . President of the Senate. sugar-maple areas join in boiling the sap prices further, and thus penalize farmers for Adopted by the house of representatives, and making the sirup in their own ways. patriotic e:trort; and the 9th day of March 1953. As an industry, maple-sirup produc Whereas only two Minnesota crops, wheat G. H. LEAHY, tion is growing in importance with each and corn, are treated as basic commodities Chief Clerk, House of Representatives. new advance made by our scientists to under the present law; and Adopted by the senate, the 17th day of improve the techniques without ever Whereas designation of oats, rye, barley, March 1953. sacrificing the natural values of the flax, and soybeans as basic commodities for H. Y. ToRREY, clear, sweet sap which runs from the mandatory price supports under the law Secretary of the Senate. pierced trees each spring. The Holbert would tend to balance farm production, and Approved March 20, 1953. help prevent unneeded surpluses; and C. E. ANDERSON, Bros. represent the aggressive and for Whereas perishable farm products such as Governor of the State of Minnesota. ward-looking Minnesota sirup industry milk, meat, butter, and eggs make up ap Filed March 20, 1953. and the merits of their product can be proximately 70 percent of the cash farm in Mrs. MIKE HOLM, attested to by the Minnesota delegation come of Minnesota farmers and these com Secretary of the State of Minnesota. privileged to receive this finest of maple modities are without adequate price protec tion; and sirups. ' Whereas younger farmers are already in It takes almost 35 gallons of sap gath financial difficulty and it has become difficult A HAVEN FdR IRON CURTAIN ered painstakingly to the sap house to for young men to start farming with today's . ESCAPEES make 1 gallon of pure sirup. The sap is high costs and uncertain outlook, and Mr. JAVITS. Mr. Speaker, I ask gathered by hand from the buckets and Whereas a farm depression would have a unanimous consent address the House taken to the sap house in a tank drawn serious e:trect upon the entire national econ to by horses through the still heavy snow. omy; and for 1 minute. Maple-sirup making is a pioneer in Whereas legislation has been introduced in The SPEAKER. Is there objection to dustry and the gathering of sap is still Congress to improve and make permanent the the request of the gentleman from New the colorful experience it was in its old farm-price-support laws: Now, therefore, be York? it There was no objection. est days. Yet the industry utiliz~s the Resolved, by the Legislature of the State most modern improvements and best in of Minnesota, That the President, the Secre Mr. JAVITS. Mr. Speaker, all of us modern packaging to bring its product tary of Agriculture, and the Congress of the applaud the escape of the six who prefer to the family buyer. United States, be requested to do all in their freedom from Czechoslovakia by the sen- This is a good example of what can power to improve and make permanent a . sational passenger airplane exploit under be done to open new opportunities for farm-price-support program; by the leadership of Helmut Cermiak, an First, extending price supports to include engineer, and M. Slovak, the pilot. We the products of our farms and forests·. oats, rye, barley, flax, and soybeans as· basic The Department of Agriculture has ex commodities; and have similarly applauded other sens~ pressed its appreciation for the coopera Second, attempting to provide a balanced tional escapes, some, like that of the tion of the Holbert Bros. in carrying system of price supports for perishable prod young Polish pilot who flew a Russian forward the best scientific advances in ucts, including hogs, beef cattle, milk, poul MIG to Denmark, of inestimable aid to the maple-sirup industry. · try, and eggs, returning producers of these free ·world defense and security. These It is good to know that new methods important products parity for their work and escapes are a tremendous blow to the help to bring us all of the best in one of inves.tment; and Communists and their satellites. We Third, providi_ng whenever practical, self want them continued, but are we offer nature's own products. Once again regulated and self-financed price-support Americans show their unique ability to programs; and ing the escapees a real haven? The use the old and the new together for Fourth, providing an incentive system of nonpreference Czechoslovak immigra better living. price supports on commodities in short tion quota into the United States is If you visit Minnesota when the "sap's supply to encourage production shifts with mortgaged ahead to the year 2000. running" be sure so see all of the excite out acreage controls; and Those escapees from behind the Iron ment of maple-sirup-making time. Fifth, taking steps to protect and expand ·Curtain who have been crowding into markets at home and abroad for farm prod West Berlin by the thousands since the ucts, including the consideration of the In• Communists have been trying to seal off PRICE SUPPORT PROGRAM ternational Wheat Agreement; and Sixth, to expand greatly research for farm the East from the West zone of Germany. Mr. MARSHALL. Mr. Speaker, I ask production and marketing, especially in ways are living under the grave difficulties of unanimous consent to extend my re to reduce the spread between farm and re crowded refugee ~mps far beyond the marks at this point in the RECORD and tail prices for farm products, so as to safe capacity of West Berlin to maintain. include a resolution. guard the farmer's total income; and West Berlin is now receiving almost The SPEAKER. Is there objection to Seventh, to permit family farm ownership 1,500 refugees a day. The situation is the request of the gentleman from and operation by providing an adequate and such that Mayor Reuter, of West Berlin, available supply of long-term, low-interest Minnesota? credit; and is here on a money-raising mission for There was no objection. Eighth, using· a system of democratically their relief. . Mr. MARSHALL: Mr. Speaker, the elected farmer committees to carry out the Only adequate immigration opportuni House and Senate of the Minnesota State operations of all possible parts of the farm ties can give these escapees from behind Legislature have passed a joint resolu program; and the Iron Curtain a . fair haven. The tion memorializing the Congress to take Ninth, encouraging more soil conservation number is not unmanageable. There active steps t~ improve and make perm~- so as to meet the needs of the Nation without are 15,000 escapees, other than East zone 1953 CONGRESSIONAL RECORD -HOUSE 2323 Germans (who have German national I remember those dark and frightening . That so few people did lose their lives ity>, from behind the Iron Curtain in days well. My father owned a grocery is witness to the generally widespread West Europe. But resettlement by im store at the corner of Broadway and initiative, resourcefulness, and courage migration will not work if we do not Riverview. Although the water did not ous self-reliance of the people of the take our fair share as we did with the come into the store itself, it was surging valley. As soon as the nature of the displaced persQ~. The displaced-per in the street just out the door. Best of catastrophe became known, local citizens sons law permitted the admission of po all I remember the long, tense hours we went to work at rescue and relief, with litical refugees; there is now no such all worked to distribute my father's groc out instruction or direction, as though provision on the books. Such legisla ery stock to as many families who were each one were the person individually tion should be high on the congressional without food as we could reach. responsible for saving life. Stories of in agenda as a must. This agenda is the The record of flood control in the Mi ~ividual heroism are legion. Naturally, responsibility of the administration and ami Valley and the establishment of the the National Cash Register factory, with of our congressional leadership. The Conservancy District is an epic in Ameri its organization ready for work, was the Judiciary Committee could take prompt can history. It is also a tribute to the biggest of the relief stations. It was action . on this matter, as there is no pioneering spirit of the people of the Mi unharmed by water, and it had so exten trouble in getting up the necessary leg ami Valley and the men who led the sive a plant that it was the logical place islation as soon as it gets-the green light flood-control movement, men such as to house a large number of people. Heat, for this session. Col. Edward A. Deeds, John H. Patterson, water, shelter, were ·all at hand, and a Arthur E. Morgan, John A. McMahon, start on the food problem was made. Judge Horace S. Oakley, and many, many John H. Patterson, with his drive and "NATIONAL GENERAL STAFF SYSTEM others. executive ability, organized the relief Mr. VANZANDT. Mr. Speaker, I ask I would like to briefly outline how co work in the southern part of the city. unanimous consent to address the House operation changed Dayton from the In the northern part, an equally fine job for 1 minute and to revise and extend "Doomed City" to the "Fortu-nate was done by a citizen-organized group. my remarks. Valley." At best, the structure of local govern The SPEAKER. Is there objection to The Dayton of 1913 was a city of char ment is adequate for only the usual ac the request of the gentleman from acter. Although the population was a tivities. The floodwaters in effect washed Pennsylvania? mixture of people from New England, away the relatively weak city govern There was no objection. Bavaria, Pennsylvania, and the South, ment, and its functions were taken over [Mr. VAN ZANDT addressed the House. with a touch of Irish, Slav, and Negro by forceful men who quickly created or His remarks appear in the Appendix.] it had elements of homogeneity and of adapted organizations to serve the im a common spirit which gave it some of mediate need, or by outside State or the characteristics of a village with a Federal agencies. Among a people with DAYTON, OHIO: FROM DOOMED out democratic traditions, the situation CITY TO FORTUNATE VALLEY long history in which the people were neighbors. It was a city of greatly might have led to efforts to gain perma Mr. SCHENCK. Mr. Speaker, I ask varied home-owned industries, nearly all nent control of city affairs. In fact, unanimous consent to address the House of which had originated and developed however, these emergency agencies were for 1 minute and to revise and extend my there. Life in the narrow valley was created on the spot or were brought in remarks. prosperous, but constantly subject to from outside, served their short-time The SPEAKER. Is there objection to one menace-that of flood. The pioneer purposes, and then disappeared, leaving the ·request of the gentleman from towns of the valley had barely begun civil processes and authority in control. Ohio? their development when, in the month Because of the physical setup of Na There was no objection. of March 1805, a flood occurred which · tional Cash Register Co. and because Mr. SCHENCK. Mr. Speaker, 40 years probably was not exceeded in size until John H. Patterson, the founder and ago today my home town of Dayton, the disaster of March 1913. After the owner, was a master of system, organi Ohio, was at the darkest moment in its flood a levee was built along the river zation and effective leadership, Mr. Pat entire history. The waters of the Miami, by the new settlers which was washed terson assumed control of the situation. Stillwater, and Mad Rivers raged away in 1828 by another flood. Although On March 28, a number of citizens niet through the streets. During the days the levee system was enlarged through with Gen. George H. Wood, of the Ohio that Dayton and many other communi the years, it was.again breached in 1847. National Guard, and communicated with ties in the Miami Valley were under As the cities grew larger, flood damage Governor Cox, who went through the water, great fires raged unchecked and increased. The floods of 1866, 1897, and form of creating a Citizens' Relief Com added to the destruction and loss of life. 1898 and the lesser ones during the inter mittee. Mr. Patterson was appointed When the waters receded, 300 lives had vening years finally stirred the city gov president, and W. F. Bippus, secretary been lost and property damage exceeded ernment of Dayton. Plans for flood and treasurer. All orders signed by Mr. $100 million. . control were made and remade as the Patterson were honored by all the posts Many people claimed that Dayton years passed. Finally, in the spring of of the National Guard. and the Miami Valley could never re 1913 all formalities were completed, Too many Daytonians to name gave cover from this distaster, that never finances were arranged, contracts were able assistance as members of this com again would the area be out of danger let, the construction equipment was mittee. The National Guard, the Red from similar floods. Ten years later this erected, and the work was to. start the Cross, and the Citizens' Relief Commit threat had been removed forever-re following week, when the great flood of tee worked hand in hand to bring order moved through the efforts of the people 1913 burst upon the valley. When it was out of chaos. On May 6, the period of themselves. The secret of the achieve past, the contractor's equipment was a emergency administration for Dayton ment was cooperation. All the citizens wreck in midchannel. was at an end. Martial law was sus of the Miami Valley worked steadfastly However, failure to have the con pended by Governor Cox and the civil for the group as a whole in cooperation struction completed in time was not a government resumed its usual functions, with each other, recognizing ~hat wliat disaster since the flood of 1913 was more although the· Red Cross and Citizens' is good for one is good for the other and than 2% times as great as that against Committee continued to be of service. never losing sight of the fact the future which protection had been planned. I go into this emergency government of any group lies in the hands of all the period to prove that controls and dic people and not just a selective few. · The flood itself is history. The storm tatorlike authority can be inaugurated I feel that the lesson learned in those began on March 23. By March 25 the and as easily abandoned when the need harrowing days of the flood itself, and water was overflowing unprotected lands is over. the years which followed is one which in the north part ·of Dayton and finally Even before martial law had been should serve not only the people of my the muddy waters spilled over the top lifted, the people of Dayton had organ district, but all the people of our great of the levees into the city. By morning ized to prevent the threat of future·trag Nation, as .an example of what men and on the 26th, the floodwater in Dayton edies. Five committees were set up women can accomplish when they work had reached its crest, about 10 feet deep to work along with the city government. together with an unconquerable spirit in the main section of the city. From They were flood prevention, fina...l'lce, pub toward a common goal. then it fell slo~ly. lic improvement, sanitation and traffic. 2324 CONGRESSIONAL RECORD -HOUSE March 25 The finance committee began a whirl completed. Fifteen million dollars of our covenants extends to the end of our wind campaign to raise $2,000,000 to ap serial bonds were issued. Then; only 5 bayonet. ply toward flood prevention, and Arthur years after the flood, in January of 1918 I shall develop this idea of a chief of E. Morgan was engaged to take charge actual work began. It is one of the infantry, Mr. Speaker, in the days ahead. of flood-prevention investigations. An shortest periods :recorded among simi open meeting was held and a final lar projects. In April of 1923 announce accounting showed . contributions of ment was made of the completion of the COMMITTEE ON RULES $2,130,000 from 23,000 subscribers. This work included in the official plan. Mr. HALLECK. Mr. Speaker, I ask flood-prevention fund financed the prep Just 10 years earlier the people of the unanimous consent that the Committee aration of plans and the other essen valley were cleaning the mud out of their on Rules may have until midnight Satur tial expenses for about 4 years, until houses and were wondering what would day night to file a report on the so-called proceeds from bond issues were avail be the future of an area subject to such submerged or tidelands oil bill, reported able. Thereupon 10 percent was re a threat. In no other great flood-control out by the Committee on the Judiciary. served for possible further needs, and project in America, aside perhaps from The SPEAKER. ·· rs there objection to about 83 percent was turned back to the one on the Mississippi, had construc the request of the gentleman from Indi..: the subscribers. This, you will ad tion work even been begun within 10 ana? mit is an unusual history for a con years of the time of the disaster which There was no,objection. tributed fund. As Mr. Patterson with brought it about. The expenditure had drew from active leadership, Col. Ed been about $30,000,000. ward A. Deeds, then vice president of However, it is not the actual dollars SPECIAL ORDER GRANTED NCR, became the spearhead of the proj spent that make tJ;lis project significant. Mr. PATMAN asked and was given ect. He went· up and down the valley It is the fact that the people themselves permission to address the House for 15 speaking untiringly on the need for ade without financial help from the Federal minutes tomorrow, following the legisla quate flood control. Government worked together and per tive program and the conclusion of spe In addition to surveys and studies on sonally provided the funds to make their cial orders ·heretofore granted. which the engineering plans were to be valley safe. based, and the actual development of The Miami Conservancy District, those plans, the group was also engaged through its pioneering, not only suc MONETARY POLICIES OF FEDERAL in working out the general · structure ceeded in its direct aims but wrote an RESERVE SYSTEM of flood-control legislation. When the other chapter in the history of rugged The SPEAKER. Under previous or general outline was prepared, it was American individualism. der ·of the House, the gentleman from turned over to a legal staff, headed by Texas [Mr. PATMAN] is recognized for 15 John A. MacMahon, to be cast into suit LEAVE OF ABSENCE minutes. able legal form. The Ohio conservancy World War I when such a situation · Miami Conservancy Building to be "an plemented, I think will add to the secu has existed. After World War I, many outward and visible sign of inward and rity of the Nation and to a fuller under of us remember that Government bonds spiritual strength'' in order to encourage standing of one aspect of foreign affairs. went down even lower than 93. They those citizens who were beginning to lose I intend to develop the theme of hav went down to 80, and in some of the heart in the project. The building had ing a chief of infantry for our ground remote sections of our country, where the desired effect since the citizens forces. · they did not have access to quick infor plunged even more vigorously into their I think circumstances in Korea have mati.on, they went down as low as 76. fight to protect their homes from this shown clearly that only that ground Those bonds were very quickly bought threat of flood. which the foot soldier holds does civil up by people who were traveling over the Plans for actual construction began. government control. country buying them, and shortly there While the legal hearings on appraisals · If this Nation had appreciated that after they went back to par. The people and bids were underway, plans for the fact during World War II it might have of our country were aroused and dis financing through the sale of bonds were realized that the enforcement power _of turbed by that, and when an emergency 1953 CONGRESSIONAL RECORD- HOUSE 2325 came on, about 1938, the early part of In 1919 and 1920 before the great boom starting out on the same road now we 1939, one of the first things this Congress and bust certain things happened to want to know it and we ought to be able considered before the Ways and Means which I want to invite your attention. I to take some of that power away from . Committee in determining a good way have before me certain charts. They them that they are using and exercising to finance the emergency which we could were not prepared by any particular which can only result in something hap~ see approaching us, was to determine economist or any person who had a per pening that we do not want to happen a good way to protect the people against sonal axe to grind or personal idea to any more. losses on the purchase of bonds which sell; they were prepared by the Board of WHAT HAPPENED IN ENGLAND they had bought and would buy in order Governors of the Federal Reserve Sys to carry on the national defense pro tem. They are Federal Reserve charts In the fall of 1951 the Banking ami gram, which was this very problem. I on bank credit, money rates, and busi Currency Committee of the House visited was before the Ways and Means Com- . ness, put out in September 1952. On England and other Western European mittee, and other Members of Congress page 42 of this book of charts I find the ·countries. We visited the financial lead went before the Ways and Means Com- · short-term· interest rates chart com- · ers of those .countries and we discussed mittee, and we told about this cheating mencing from the early part of 1919 financial policies with them. While we on Government bonds, and we asked the down to 1950. You will notice that the were there under the chairmanship of committee to do something to stop it in short-term interest rates went up real the distinguished gentleman from Ken the future; that we did not want that fast before the boom and bust in 1920 tucky, Hon. BRENT SPENCE, we had a to occur in America again; that people and 1921. The rediscount rates of the conference for one Whole afternoon with . who patriotically bought bonds should Federal Reserve banks went way up and · Chancellor Richard A. Butler of Eng not be compelled to sell those bonds at they reached the top and then there was land. He had just gone into office. He a great loss; the Government should not a bust. You know what happened to the outlined to us his program and projected· permit them to sell those bonds or cause country; the country went through a to us what he expected to do in England. them to sell those· bonds at a great loss; wringer; people lost their homes by the Many of us thought then: We do not that it was absolutely wrong. All right. thousands 'and tens of thousands, their know what it will do for England but it They decided we would not have any businesses went broke and everything certainly would ruin the United States. Many of us openly expressed ourselves. such t:~ing as that to happen again. else. Then the rediscount rate went way They arranged for E, F. and G bonds, down, took a nosedive; short term money He went ahead and carried out that pol and the Federal Reserve Open Markets rates went way down; the country. got icy. Of course, he was not asking us for Committee protected the bond market, stabilized again. Then in 1927 and 1928 'advice and we were not trying to give so they would not go below par. That they started up again, the boom and bust him any. · protection continued until the last year just like it was in 1919, exactly the same What was his policy? Just the same · or two, but then the peg was taken out way; the same change in interest rates as the Federal Reserve Board has started by the Federal Reserve Board through until in October 1929, October, there was here-raising the rediscount rates at the Open Market Committees that they another bust, a boom and bust exactly Federal Reserve banks, making money dominated, and bonds were allowed to like there was in 1919 and 1920. All harder to get and causing commercial go down again. That is the same situa right; now I concede to any person the banks to increase their rates, just exact:. tion facing us now which faced us after right to make one mistake; we all make ly what they are doing here. · Now, I do World War I, and something which we mistakes, we cannot help that, we are not know whether it will have the same· were determined to guard against. subject to mistakes, and under certain effect here or not. It has had it twice· Now; why are ·these bonds permitted to conditions and circumstances. possibly · before, we know that. go down? Of course, the idea is to raise the second mistake might be tolerated I have in my hand here an article that interest rates, Well, why raise interest and the person not be condemned for appeared in Business Week of March 14 rates? We are told that is the way to· making it. But now, then, we are start 1953, commencing on page 30. I am go~ make the dollar worth more; that we ing out on the same thing the third time, ing to insert this complete article in 'the have a 50-cent dollar, and we will make doing the same identical thing that RECORD. The heading of the article is : it worth more. Well, how much more largely contributed to and caused the "Trying Hard Money on Britain-It Has boom and bust of 1919 and 1920, and the Been Tough on Businessmen and R'e valuable do we want to make it? Do we sulted in a 30-Percent Drop in the Stock want to make it a 75-cent dollar? If we boom and bust of 1929 and 1930; we· are do, that means it will require 50 percent doing exactly the same thing today. Who Market and a Cash Squeeze on Small more labor, 50 percent more services, 50 is doing it? The Federal Reserve Board. Firms, but the Shakeup Has Restored percent more farm products and 50 per The Federal Reserve Board-composed Competitiveness and Labor Discipline." cent more goods to pay the dollar that of 7 members appointed for 14-year All right. is created on these debts. How high do terms-has enough power over monetary You will find in here that the interest you want this dollar? Do you want it · affairs that Congress has given to the rates were forced up on commercial banks from 3 to 5 percent, the redis to go back to 1939 where it was 100 Federal Reserve Board, that they have count rate went up, Government bonds cents? If you do, in effect you double the more weight and effect on the economy went down, just exactly what is happen value 9f the debts of this Nation. At of th~s Nation than this entire Congress one time in 1920, the farmers of this has. Let me say that again: Those seven ing here in the United States. country borrowed money to make crops members of the Federal Reserve Board The article is as follows: like cotton, corn, and wheat, when the have enough power and weight to ac TRYING HARD MONEY ON BRiTAIN-IT'S BEEN prices of those products were very high. complish more on the economy of this · TOUGH oN BusiNESSMEN: A 30-PERCENT DROP IN THE STOCK MARKET AND A CASH Cotton ·was about 40 cents a pound and Nation than this entire Congress can ac SQUEEZE ON SMALL FIRMS BUT THE SHAKE the others were at a comparable price. complish, whether we have an annual OUT HAS RESTORED COMPETITIVENESS, LABOR But everything went down so much that, budget of $40 billion or $120 billion; the DISCIPLINE when the time came to pay those debts Federal Reserve Board has more power Ever since the Churchill government took cotton was worth one-fourth that much; than this Congress· has, and this Con office early in November 1952, it has been and the other products in proportion. gress has given them that power. They using monetary policy to squeeze inflation So they had to pay four times the same determine whether we have good times out of the British economy. In charge of kind of dollars to pay those debts. We or hard times. The administration in this operation is Chancellor Richard A. But ler, who has been in Washington for talks do not wan~ that to occur again. It power is responsible if this Board,is per with Treasury Secretary George M. Hum broke the countr.y, absolutely broke the mitted to cause this country to be phrey, the man chosen by President Eisen country." We do not want·that to hap wrecked. hower to give the United States economy a · pen any more. But if you double the I am of the opinion that we should de dose of similar hard-money medicine. value of the dollar it will happen. So termine from the Federal Reserve Board Butler wasn't here to talk only about .. we do not want the dollar to go down where they are going, what are their ob monetary matters. He had a larger problem any more in value; we want to stabilize jectives, how far do they expect to go. on his mind-how to get Britain and the the dollar and maintain it as a stabilized sterling area on a sounder · footing via a We ought to find out what they are do policy of trade not aid (Business Week, dollar, but we must first determine how ing, because they are following the same February 21, 1953, p. 25.) But during the much that dollar should be before mak pattern that has caused the booms arid talks Humphrey may well have picked up a ing it too valuable too quickly. busts in this country; and if they are tip or two on what to expect, especially by· 2326 ·coNGRESSIONAL RECORD.· - HOUSE March 25 way of business reaction, when a democratic In order to get cash to repay the banks; good profits from higher loan rates. In fact, government shifts to a hard money policy thousands of local stores throughout Britain all the banks reported higher profits from after a long period of easy money. For But stopped buying radios, TV sets, and bicycles, 1952 than froin 1951. One bank was able to ler has been through the mill for some 16 sold their stocks at cut prices. The same raise its dividend, something that hasn't months, though in a country where eco thing happened in the case of stores handling happened in Britain since the mid-1930's. nomic conditions are somewhat different clothing, shoes, and household goods. FEELING THE SQUEEZE from here. EXCESS-PROFITS TAX Business profits as a whole felt the impact NEW APPROACH Meanwhile, Butler's budget brought more of the monetary squeeze-though not too When the Conservatives took over from bad news for British business. Instead of an seriously. Net profits before taxes for calen Labor they introduced something new in expected tax cut, business got an excess dar 1952 were 11 percent above 1951. Still, postwar British financial policy-the deliber profits levy on American lines. The only tax the 1951 gain over 1950 had been 24 percent ate use of interest rates and credit manage relief went to the low and middle income and profits for the fourth quarter of 1952 ment to curb infiation. There's no doubt · brackets. This made many businessmen were actually below the previous year. that the policy has transformed the economic hopping mad, produced real discontent What's more, total profits don't tell the climate in Britain. Today inflationary pres within the Conservative Party. whole story. Profits of industries such. as sures are pretty well gone, the work pace has PRESSURE EASES aircraft, machinery, engineering, and con quickened in most industrie,s, and there has struction materials were all up as a result been a perceptible revival of competition in Then, after midyear, the financial pres Of higher government spending on defense Britain-all without any increase in unem- sure eased up some. On the one hand, and housing. But profits in textiles, cloth .ployment. Although a lot of businessmen Butler felt that his monetary policy plus ing, shoes, and other consumer goods all have been hurt in the process, most of them drastic import cuts had already achieved dropped fairly sharply. Retail stores barely are satisfied today that British business is one of his main goals-strengthening the held their own, after a steady rise over sev- in far healthier shape than it was a year ago. pound in world currency markets. On the eral years. · And they give the hard-money policy credit other, Butler feared that too tight a mone It's clear that if Butler maintains his hard for getting Britain out of the foreign-ex tary squeeze might produce a serious reces- money policy, profits in 1953 will show a change jam it was in last year. sion in Britain. · reaJ drop. So the Government intervened directly SLUMP in the textile slump by placing big defense COMPETITION True, part of the change in the economic contracts ahead of schedule. At the same Overall, a hard money policy has meant climate was brought on by last year's textile time, the TJ::easury began to run a cash defi new troubles for British business. It has slump and by the trouble Britain began to cit because defense spending was heavier ended seven fat years and finished the days meet in export markets. But Butler used than it had planned. of easy finance within British companies. .monetary policy to accelerate the adjust- ' After midyear, the Treasury also allowed But for the most part the growing competi ments that were forced on the British econ the banks to increase their liquid assets tive pressure has pleased efficient firins and omy by these two developments, whereas the again. These assets rose from 31 percent worried only the inefficient. Socialists undoubtedly would have softened in March to 38 percent in September. And Almost every British industrialist is de the blows by easy credit and cheap money. bank deposits, which had dropped for a lighted by the way the new climate has re For a while, British businessmen were while, rose by the end of December to a stored plant discipline and cut down po badly shaken. Instead of the easier times postwar high. litical abuse of "capitalists." Several unions they had expected under a Conservative gov MARKET RISES have recently made statements urging their Jllembers. to help management raise output ernment, they faced the heaviest pressure It was the stock market that probably since the war. Many businessmen even and cut costs. They have even declared gained the most when Butler eased up his that profits are essential to maintain equip wished that Labor's hated controls would re monetary policy· at midyear. The market turn to replace the tough monetary policy ment. That's such, a nove~ line for British rose gradually again, and yields dropped unions to take that British management is imposed by the Conservatives. The recortl from their former high levels. After a slump shows that Chancellor Butler put on a squeeze willing to believe that the squeeze may bring of 30 percent, industrial stocks rose by about better times. that was plenty tough for business. 20 percent between mid 1952 and February TAX RELIEF QUICK MOVE this year. Medium-term Government secu rities, · which had yielded 3.7 percent be However, taxation is one area where British Once in office, Butler didn't waste any time fore the Conservatives came to power, rose business is asking for relief. Business in applying a stiff dose of monetary medicine. to 4.3 percent in May 1952, then dropped spokesmen are pressing the Government hard He took two steps immediately: ( 1) He raised to 4 percent by February. ' to cut its spending and to clear the way. the Bank of England's rediscount rate from Business in general gained only slight re for tax cuts. Invariably they argue that un 2 percent to 2Y:z percent; and (2) £1-billion lief from this easing of policy. For the Gov less business taxes are cut, British industry of Treasury bills held by the banks were ernment swept up all the additional credit. cannot even maintain its equipment. funded into bonds. The second move re The story is told in two figures: In calendar Chancellor Butler must decide on this tax duced the liquid assets of the commercial 1952 the Government borrowed £400 million question before his April budget. And the banks from 39 percent of deposits to 31 per more than in 1951; business borrowed £300 betting in London is that business will get cent, automatically enforced restrictions on million less in 1952 than in the previous some kind of break on taxes. But there's bank loans. year. Actually, bank loans to business no expectation at all that monetary policy Within 6 months from the time Churchill dropped by 10 percent in 1952. will be eased. In fact, it's possible that took office, industrial stocks in Britain had What's more, even after midyear the high Butler will tighten the credit screw again slumped 15 percent, long-term government cost of bank advances forced the continued to cut down domestic consumption and make securities 10 percent. Then, in March, the . clearance of inventories • not only by re more goods available for export. bank rate was raised again, this time to 4 tailers but by wholesalers and manufacturers percent. By midyear industrial stocks had as well. I want you to read that article, and . dropped· another 15 percent. SHAKY ON. CASH then I want you to read another article WIDE EFFECT Inventory liquidations throughout 1952 which, incidentally, also appeared in Meanwhile, the impact of Butler's policy . prevent monetary pressure from being dis Business Week, although I do not know had spread from the finan_cial community to astrous for more than a few firms. But a the exact date of its appearance . . I hap British business in general. The commer large part of British business is still in a pen to have a reprint. I saw the article cial banks were nearly panicked by the slump shaky cash position. That has brought on when it came out in Business Week. It in government bonds. On top of that they a booming new business in credit insur discloses information about our debts ance--covering against nonpayment of trade were being pressed by the Bank of England that we should know about. It is a very to tighten up their loan policies. So the debts. The funds are. provided by a group of big insurance companies. intet_esting article, and I hope all of you banks pressed their customers for quick re will read it. It states that the Federal payment and for additional security. At the Today bills aren't being paid in Britain as promptly as they were. Even some of the Government owes about $267 billion; the same time they reduced agreed borrowing big-name British companies don't pay their State and local debt abou.t $30 billion; limits and boosted loan rates. The average bills un'til they have had two or three re private debt, corporations, $195 billion; rate on loans went up from 3 percent to 5 minders. They are quite ready to let the individuals, $135 billion-a total of $627 percent. sUPJ?liers battle with creditors and the banks. The bigger British companies were able to billion. That is our debt here in America. resist demands for repayment. And they DEBT COSTS UP How much will it mean to the people found enough working capital by stream The government, of course, has had to pay of America if you increase interest rates a price for its tough money policy. The lining inventories and trimming off marginal 1 percent? That means $6,270,000,000 a , I interest that it pays on the national debt has year extra that you will have to pay, and expenditures. But medium and small firms risen by 20 percent. This will add £100 mil felt the full force of the financial squeeze. lion to this year's budget. that is just increasing the interest rate They were stampeded into inventory liquida As the biggest holders of government secu 1 percent on existing debts. If you in tion. Materials and components that had rities, the British commercial banks were crease the i~terest rate one-half of 1 per been stockpiled during years of shortages hard hit at first. But since midyear they cent it is three billion plus just on what were sold out in a rush. have recovered their capital losses and made we already owe. 1953 CONGRESSIONAL RECORD -HOUSE 2327 The article is as follows: be upset by the necessity of making heavy (By unanimous consent, Mr. PATMAN debt payments to other countries. PROSPERITY INItaly as a mem viding care for their children while they are Philadelphia, Pa.; to the Committee on the ber thereof; to the Committee on Foreign at work; to the Committee on Ways and Judiciary. Affairs. Means. By Mr.MULTER: Also, memorial of the General Court of By Mr. SMITH of Virginia: H. Res. 189. Resolution amending the Rules H. R. 4226. A bill to regulate the opera Massachusetts to urge the Federal Power o~ . the House of Representatives relating to Commission to insure that Massachusetts tion and conduct of commercial parking of discharge of committees; to the Committee motor vehicles in the District of Columbia, on Rules. obtains the lowest possible natural gas rates; and for other purposes; to the Committee on to the Committee on Interstate and Foreign the District of Columbia. Commerce. Also, memorial of the General. Court of By Mr. STRINGFELLOW: MEMC'RIALS H. R. 4227. A bill to amend the Natural Massachusetts to pass antilynching legisla Gas Act; to the Committee on Interstate and Under clause 3 of rule XXII, memori tion; to the Committee on the Judiciary. Foreign Commerce. als were presented and referred as fol Also, memorial of the General Court of H. R. 4228. A bill to provide for the set lows: Massachusetts to pass legislation to provide tlement of certain claims of the Uintah and free mailing privileges to all persons or By Mr. GOODWIN: Memorial of the organizations sending letters or merchandise White River Bands of Ute Indians asserted Massachusetts Legislature to the Congress of · in Court of claims case No. 47568 and to to persons serving overseas in the Armed the United States to protest the present Forces of the United States, while engaged provide for the administration of the lands political diVision of Ireland and the presence and moneys paid or to be paid Indians in in hostilities under the flag of the United of British troops therein; to the Committee Nations; to the Committee on Post Office and settlement; to the Committee on Interior on Foreign Affairs. and Insular Affairs. Civil Service. By Mr. TALLE (by request): Also, memorial of the Massachusetts Legis Also, memorial of the General Court of H. R. 4229. A bill to change the name of lature to the President and the Congress of Massachusetts for the payment by the Fed the Polycultural Institution of America to the United States to instruct delegates to eral Government of a Federal ol~-age pen Polyculttiral University of America, to grant the United Nations to propose Italy as a sion of $100 monthly for all persons who have a congressional charter to such university, member thereof; to the Committee on For attained age 65; to the Committee on Ways and for other purpose5; to the Committee on eign Affairs. and Means. the District of Columbia. Also, memorial of the Massachusetts Legis By the SPEAKER: :Memorial of the Legis By Mr. TOLLEFSON: lature to Congress to pass anti-poll-tax lature of the State of Arizona, memorializing H. R. 4230. A bill to amend the Social Se legislation; to the Committee on House the President and the Congress of the United curity Act to provide a direct Federal pen Administrator. States, relating to the establishment of an sion of at least $100 per month to all Amer Also, memorial of the Massachusetts Legis Air Force Academy in Arizona; to the Com ican citizens 65 years of age and over who lature to Congress of the United States to mittee on Armed Services. t953 CONGRESSIONAL RECORD -HOUSE 2333 Also, memorial of the Legislature of the · By Mr. OSMERS: 114. Also, petition of Lithuanian Demo State of Colorado, memorializing the Presi H. R. 4252. A bill for the relief of Geralda cratic Club, Inc., of Newark, N. J., requesting dent and the Congress of'the United States, Lillo and Karl Heinz Lillo; to the Committee enactment of legislation to amend the social to consider }egislation allowing a Federal in on the Judiciary. security laws allowing payment of benefits come-tax deduction for certain military, Air - By Mr. POWELL: to everyone in covered employment upon . Force and naval reservists; to the Committee · H. R. 4253. A bill for the· relief of Walter their having attained the age of 60 years; to on Ways and Means. Adolphus Burke; to the Committee on the the Committee on Ways and Means. Also, memorial of the Legislature of the Judiciary. 115. Also, petition of Ibrahim Velutini, State of Minnesota, memorializing the Presi By Mr. ROGERS of Colorado: President, Caracas, Venezuela, relative to dent and the Congress of the United States, · H. R. 4254. A bill for the relief of Aneta legislation which would tend to reduce the with respect to Federal taxes on gasoline and Popa; to the Committee on the Judiciary. · importation of Venezuelan petroleum; to motor fuel; to the Committee on Ways and By Mr. SCUDDER: the Committee on Ways and Means. Means. H . R. 4255. A bill for the relief of Victor Also, memorial of the Legislature of the Manuel Soares De Mendonca; to the Com State of North Dakota, memorializing the mittee on the Judiciary. President and the Congress of the United By Mr. SIKES: States, relative ..to limiting influx of foreign H. R. 4256. A bill for the relief of Magda HOUSE OF REPRESENTATIVES agricultural products; to the Committee on Manoli; to the Committee on the Judiciary. Agriculture. By Mr. SMALL: THURSDAY, MARCH 26, 1953 H. R. 4257. A bill for the relief of Will more Engineering Co.; to the Committee on The House met at 12 o'clock noon. PRIVATE BILLS AND RESOLUTIONS the Judiciary. The Chaplain, Rev. Bernard Braskamp, By Miss THOMPSON of Michigan: D. D., offered the following prayer: Under clause 1 of rule XXII, private H. R. 4258. A bill for the relief of Katharina bills and resolutions were introduced and Steinbach; to the Committee on the Judi- . Most merciful and gracious God, grant severally referred as follows: ciary. that we may go forth in the hours of this By Mr. WESTLAND: day with a more adventurous and stead By Mr. BARRETT: H. R. 4259. A bill conferring jurisdiction . H. R. 4234. A bill for the relief of Alessan fast faith in Thee and in the. ultimate upo~ the United States Court · of Claims to triumph of the true and the good. dra Barile Altoboelli; to the Committee on hear, determine, and render judgment upon • the Judiciary. the claim of Spencer C. Clark for extra com We humbly confes~ that we so fre By Mr. BENDER: . pensation for Sunday, holiday, and overtime quently allow our faith to become H. R. 4235. A bill for the relief- of Edward services performed between 1929 and 1942; eclipsed by doubt · and by difficulties Zepp; to the Committee on the Judiciary. to the Committee on the Judiciary. which seem insurmountable. By Mr. BYRD: Help us to understand that if our ·H. R. 4236. A bill for the relief of Nahi faith is to be vital and strong, then we Youssef; to the Committee on the Judiciary. PETITIONS, ETC. must cultivate it and guard it, for eternal By Mr. BUCKLEY: Under clause 1 of rule XXII, petitions vigilance is the price of faith as truly H. R. 4237. A bill for the relief of Osjasz and papers were laid on the Clerk's desk Hersh Braksmajer (Sam Braksmayer), Rysa as it is the price of freedom. Margolit Braksmajer, and Mosher Braksma and referred as follows: Hear us for the sake of our· blessed Jer; to the Committee on the Judiciary. 107. By Mr. CANFIELD: Petition of the Lord. Amen. By Mr. CONDON: New Jersey Association of Nurserymen recording its vigorous opposition to the pro The Journal of the proceedings of yes • H. R. 4238. A bill for the relief of Mrs. Julia terday was read and approved. Adele Vence; to the Committee on the Judi posed changes relating to peat moss balls, and its support of additional restrictions ciary. governing such importations due to the ever By Mr. DEVEREUX: H. R. 4239. A bill for the relief of Arthur present danger of introducing new and dan COMMITTEE ON THE JUDICIARY gerous pests to the United States of America K. Jefferson; to the Committee on the Judi and the increased danger that would result Mr. GRAHAM. Mr. Speaker, I ask ciary. if the regulations of quarantine No. 37 wer'e unanimous consent that the Committee By Mr. DOYLE: modified as now proposed by the United on the Judiciary may have until mid H. R. 4240. A bill . for the relief of Arturo States Department of Agriculture; to the · night tomorrow in which to file a report Ordonez; ·to the Committee on the Judiciary. Committee on Agriculture. on the bill H. R. 4198. By Mr. HELLER: 108. By Mr. SMITH of Wisconsin: Reso The SPEAKER. Is there objection to. H. R. 4241. A bill for the relief of Oscar lution of the National Defense League of Neumann, Mrs. Magdalena Neumann, a~d America, Inc., to the end that the Congress the request of the gentleman from Penn Judith Gabrielle Neumann; to the Commlt of the United States of America as the duly sylvania? tee on the Judiciary. elected Representatives of all the people of There was no objection. By Mr. HOLIFIELD: this Republic, initiate action to cause im H. R. 4242. A bill for the relief of Mrs. Rosa mediate withdrawal of this Republic's mem Barroso De Orozco; to ·the Committee on the bership in the United Nations; to the Com REDUCTION OF MILITARY DOCTORS Judiciary. mittee on Foreign Affairs. H. R. 4243. A bill for the relief of Kuo Lum 109. Also, resolution adopted by Board of Mrs. ROGERS of Massachusetts. Mr. Leong; to the Committee on the Judiciary. National Trustees of the National Society of Speaker, I ask unanimous consent to By Mr. HUNTER: the Sons of the American Revolution that address the House for 1 minute and to H. R. 4244. A bill, for the relief of Ara Constitution Day be reestablished and the revise and extend my remarks and in Giragos Farajian; to the Committee on the resolution by Congress signed by the Presi clude therein an article by Mr. John G. Judiciary. dent on February 29, 1952, creating Citizen Norris in the Washington Post. By Mr. KEOGH: ship Day, be repealed; to the QQmmittee on The SPEAKER. Is there objection to H. R. 4245. A bill for the relief of Louis the Judiciary. the request of the gentlewoman fr'om Rizzi; to the Committee on the Judiciary. 110. By the SPEAKER: Petition of the Massachusetts? By Mr. MAILLIARD: city clerk, city of Indio, Calif., to provide H. R. 4246. A bill for the relief of Light funds for adequate hospitalization for the There was no objection. Liang-liang; to the Committee on the Judi needy and ill veterans of the United States Mrs. ROGERS of Massachusetts. Mr. ciary. Forces; to the Committee on Appropriations. Speaker, today's Washington Post says By Mr. MILLER of Maryland: 111. Also, petition of Edith Johnson, and that Defense Secretary Charles E. wn.: H. R. 4247. A bill for the relief of William others, Brockton Townsend Club No. 5, son has ordered a 9-percent cut in the R. Jackson; to the Committee on the Judi- Brockton, Mass., requesting passage of H. number of Army, Navy, and Air Force ciary. R. 2446 and H. R. 2447, social-security legis lation known as the Townsend plan; to the doctors. I only hope that he is right in By Mr. MORANO: Committee on Ways and Means. ordering that cut and that the doctors H. R. 4248. A bill for the relief of Albertas 112. Also, petition of Mrs. E. E. McNeely, are not needed. Our forces in Korea Bauras; to the Committee on the Judiciary; and others, of Orlando, Fla., requesting apparently have had a shortage of arms By Mr. MORRISON: passage or' H. R. 2446 and H. R. 2447, social and ammunition, but they have had the H. R. 4249. A bill for the relief of Mary Wy security legislation known as the Townsend shoff; to the Committee on the Judiciary. most excellent me
