42626 CONGRESSIONAL RECORD -HOUSE December 19, 1970
~NCONGRESSCO~TTEE retary of Transportation John A. Volpe, the proved, as he must do at each one, that Ukrainian Congress Committee said that "to he can handle with equal facility the CONDEMNS EXTRADITION OF surrender a political defector to the claws of LITHUANIAN DEFECTOR the KGB at a time when the U.S. Govern tough questions, the loaded questions, ment is pleading with the world for its in and the rude questions. tervention for humane treatment of our He proved that the press conference HON. DANIEL J. FLOOD POW's in North Vietnam, is the acme of in can be a worthy vehicle for transmitting OF PENNSYLVANIA humanity, folly and responsibility." news to the American people. IN THE HOUSE OF REPRESENTATIVES The press also proved something. It Thursday, December 17, 1970 [Telegram] proved it can ask searching, meaningful Hon. RICHARD M. NIXON, in-depth questions. And it proved that Mr. FLOOD. Mr. Speaker, the editor President of the United States of America, it can ask questions that are self-serving, of the Ukrainian Quarterly in New York The White House, impudent, designed to embarrass and City has forwarded to me a copy of a Washington, D.O.: are utterly asinine. press release issued by the Ukrainian On behalf of Ukranian Congress Commit The points the good questions made in Congress Committee of America and a tee of America, speaking for over 2 Inilllon favor of more frequent press conferences copy of a telegram by that organization Americans of Ukrainian ancestry, we lodge the sternest protest against the illegal, im were offset by the other questions that sent to President Nixon on the matter moral and inhuman handing over of the proved that some members of the Wash of the Lithuanian sailor wbo sought Lithuanian defector, Simas Gruze, by U.S. ington press do not deserve the courtesy political asylum in this country. On Coast Guard authorities to the Soviet of any such conferences. Monday, December 14, 1970, I made an guards. Mr. Speaker, it is true the President address in the House on this subject and This act, in total definiance of the U.N. must meet his responsibilities to keep the my remarks appear in the RECORD be Convention Relating to the Status of Refu people informed. But it is equally true ginning on page 41421. gees, occurred in American waters and con stitutes a most disgraceful violation of our that a free press has a duty to keep the As part of my remarks today, I in traditional policy of political sanctuary for people informed in a responsible manner. clude a letter of transmittal from the those fleeing oppression and tyranny. editor of the Ukrainian Quarterly, Mr. To surrender a political defector to the Walter Dushnyck, as well as copies of the claws of the KGB at a time, when the U.S. MESSAGE TO CONSTITUENTS aforementioned press release and Government is pleading With the world for telegram. its intervention for human treatment of our THE UKRAINIAN QUARTERLY, POW's in North Vietnam is the acme of in HON. CRAIG HOSMER humanity, folly and 1ITesponsibll1ty. There OF CALIFORNIA New York, N.Y., December 12, 1970. fore, we fully support your order for an im Hon. DANIEL J. FLOOD, IN THE HOUSE OF REPRESENTATIVES The Rayburn BuilcUng, mediate investigation to bring those respon sible for this tragic and shameless crime Thursday, December 17, 1970 Washington, D.O. against human rights to account. DEAR CONGRESSMAN FLOOD: Enclosed please This event undoubtedly has marred the Mr. HOSMER. Mr. Speaker, annually find a copy of our press release and tele American image abroad and makes a mockery I send the citizens I am privileged to rep gram sent to President Nixon in connection of our professed dedication to human free resent in the Congress a message With the extradition of the Luthuanian de dom at home and abroad. Only immediate advising them of some of the services fector, Simas Kuderka. We would appreciate rectification of the perpetrated violation, by of my office and how they can become your kindess in inserting it in your pro bringing those culpable to account, can re available. Within the next few days I will posed address in the House of Representa store in the captive nations behind the Iron tives and sending a copy of it to us. Thank Curtain and the free world at large faith in mail this message which is entitled "A you. our democracy and respect for our principles Message from Craig Hosmer 'Your Man Sincerely yours, of personal freedom and human rights and in Washington' " and reads as follows: WALTER DuSHNYCK, justice. A MESSAGE FROM CRAIG HOSMER-"YOUR MAN Editor. EXECUTIVE BoARD, IN WASHINGTON" UKRAINIAN CONGRESS COMMITTEE OF AMERICA. As your Representative in the United States UKRAINIAN CONGRESS COMMITTEE CONDEMNS DECEMBER 2, 1970. Congress I respectfully invite your views on ExTRADITION OF LITHUANIAN DEFECTOR the issues facing this Nation which are of NEW YoRK, N.Y.-The Executive Board of special concern to you. the Ukrainian Congress Committee of Amer In addition to legislative duties, much of ica (UCCA), a nationwide organization of PRESIDENT MASTER OF THE PRESS my effort is devoted to assisting with the dif some 2 million Americans of Ukrainian CONFERENCE ficult problems of our ·area which must be origin, strongly condemned U.S. Coast Guard solved at the Nation's Capitol. officials who handed over the Lithuanian de It also is my pleasure to be of help to you fector, Simas Gruze, (later identified as HON. SAMUEL L. DEVINE when you encounter a personal problem with a Department or Agency of the Federal Simas Kuderka) to his Soviet captors. Term OF OHIO ing the act a "most disgraceful violation of Government. our traditional policy of political sanctuary," IN THE HOUSE OF REPRESENTATIVES Your letters will reach me for prompt at the UCCA expressed its full support of an Thursday, December 17, 1970 tention when addressed as follows: Congress immediate investigation and bringing those man Craig Hosmer, Rayburn Building, Wash responsible for this crime to account. Mr. DEVINE. Mr. Speaker, once again, ington, D.C. 20515. In a telegram sent to President Nixon, last week President Nixon came off as On the obverse of the foregoing mes Secretary of State Wllliam P. Rogers and Sec- the master of the press conference. He sage is a home or office calendar for 1971.
HOUSE OF REPRESENTATIVE,S-Saturday, December 19, 1970
The House met at 12 o'clock noon. THE JOURNAL H.R. 6854. An act to provide for the free The Chaplain, Rev. Edward G. Latch, The Journal of the proceedings of yes entry of a peal of eight bells and fittings for D.D., offered the following prayer: terday was read and approved. use of Smith College, Northampton, Mass.; For God, who commanded the light to H.R. 9183. An act to amend the Tariff shine out of darkness, hath shined in our Schedules of the United States to provide that imported articles which are exported hearts, to give the light of the knowledge MESSAGE FROM THE SENATE and thereafter reimported to the United of the glory of God in the face of Jesus A message from the Senate, by Mr. States for failure to meet sample or specifi Christ.-n Corinthians 4: 6. Sparrow, one of its clerks, announced cations shall, in certain instances, be en Almighty God, who hast declared Thy that the Senate had passed without tered free of duty upon such reimportation; love to men by the birth of the Holy amendment bills of the House of the fol H.R. 10150. An act for the relief of certain Child at Bethlehem: Help us to welcome lowing titles: individuals employed by the Department of Him with gladness and to make room for H.R. 4983. An act for the relief of James M. the Air Force at Kelly Air Force Base, Tex.; Him in all our common days, so that we Buster; H.R. 10704. An act for the relief of Sam may live at peace with one another and H.R. 6049. An act to amend the definition uel R. Stephenson; in good will with all Thy family: In His of "metal bearing ores" in the Tariff Sched H.R. 12621. An act for the relief of Lt. holy name we pray. Amen. ules of the United States; Robert J. Scanlon; December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42627 H.R. 14271. An act for the relief of Jack A. ing to housing and urban development, Conyers Harrington Pettis Duggins; Corbett Hastings Philbin and for other purposes." Coughlin Ha wklns Pike H.R. 15272. An act for the relief of Da· The message also announced that the Cowger Hays Pirnie vid L. Kennison; Senate had passed bills and a joint reso Cramer Hebert Podell H.R. 15979. An act to provide that the in· Cunningham Henderson Pollock terest on certain insured loans sold out of lution of the following titles, in which the Daddario Hungate Powell the agricultural credit insurance fund shall concurrence of the House is requested: Davis, Ga. Jarman Price, Tex. be included in gross income; s. 1009. An a~t for the relief of Ruth V. Delaney Jones, N.C. Pucinski Hawley, Marvin E. Krell, Alaine E. Benic, Denney Kee Purcell H.R. 16506. An act to amend the Internal Dent Kleppe Quie Revenue Code of 1954 to clarify the appllca· and Gerald L. Thayer; Derwinski Kluczynski Quillen b111ty of the exemption from income taxa S. 1984. An act for the relief of Alice E. Devine Kuykendall Reid, Ill. tion of cemetery corporations; and Ford; Diggs Landrum Reid, N.Y. H.R. 16940. An act to extend untll Decem S. 2793. An act for the relief of Siu-Kel Dingell Langen Reifel ber 31, 1972, the suspension of duty on elec Fong; Donohue Leggett Riegle s. 3885. An act for the relief of Maurice Dowdy Long, La. Rivers trodes for use in producing aluminum. Dwyer Lowenstein Rostenkowski Marchbanks; Edmondson Lujan Roth The message also announced that the s. 3971. An act for the relief of Luana Edwards, Calif. Lukens Roudebush Senate had passed with amendments in Gaja; Edwards, La. McCarthy Ruppe which the concurrence of the House is s. 3977. An act for the relief of Dr. Hahn Eilberg McClory St Germain requested, bills of the House of the fol Joong Lee; Esch McCUlloch Sandman s. 4261. An act for the relief of Esther Eshleman McDade Sebelius lowing titles: Catherine Milner; Evins, Tenn. McKneally Shipley H.R. 4605. An act to amend the Tariff Fallon McMillan Sikes S. 4268. An act to amend the Export-Import Farbstein MacG.regor Snyder Act of 1930 and the United States Code tc> Bank Act of 1945, as amended, to allow for Feighan Martin Staggers remove the prohibitions against importing, greater expansion of the export trade of Fish Mathias Stephens transporting, and mailing in the U.S. mails the United States, to exclude Bank receipts Ford, MatsUUlaga Stokes artides for preventing conception; and disbursements from the budget of the William D. May Sull1van H.R. 7311. An act to amend item 709.10 of U.S. Government, and for other purposes; Fraser Meeds Symington the Tariff Schedules of the United States to and Friedel Meskill Taft Fulton, Tenn. Michel Thompson, N.J. provide that the rate of duty on parts of S.J. Res. 249. Joint resolution to extend Gallagher Mikva Waldie stethoscopes shall be the same as the rate on the time for the proclamation of marketing Gaydos Mize Watson stethoscopes; quotas for burley tobacco for the 3 mar Gibbons Montgomery Weicker H.R. 16745. An act to exempt shrimp ves keting years beginning October 1, 1971. Gilbert Morgan Whalen sels from the duty imposed on repairs made Goldwater Morton Whalley to, and repair parts and eqUipments pur Gray Moss Whitehurst Green, Pa. Murphy, Ill. Winn chased for, U.S. vessels in foreign countries, A NEW MODERN ATLAS, Griffiths Murphy, N.Y. Wolff and for other purposes; ELMER M. GRADE Grover Nedzi Wydler H.R. 17068. An act to amend the Tariff Gubser O'Konski Wylie Schedules of the United States to provide (Mr. SMITH of New York asked and Hagan O'Neal, Ga. Yatron for a partial exemption from duty for air was given permission to address the Haley Ottinger Young craft manufactured or produced in the Halpern Patten Zion House for 1 minute and to revise and ex Hanna Pelly Zwach United States with the use of foreign com tend his remarks. . ) ponents imported under temporary impor The SPEAKER pro tempore 28 to 30. It passed the Senate Ti::~~~G~~:::r~sri((Hoiisfrii ------those organizations eligible for grants, by a vote ot 59 to 2. Assistance : it requires that they be "organized for Urban renewaL______1, 500 ------· the primary purpose of assisting low- and I am pleased to t· e~ ~rt that the House Public housing______150 225 ------conferees prevailed on roughly two out College housing______12 ------moderate-income families to obtain ade Title Ill- Model Cities and Metro- quate housing"-it does not require that of every three items of difference between politan Development: Model citi es grants ______they serve only a certain quota of farm the two bills. Most important, the total 200 ------dollar authorization in the bill-approxi 701 comp rehensive planning ______30 ------workers or a certain quota of nonfarm Neighborhood facilities ______50 ------workers. mately $2.8 billion-is much closer to Title IV- Open-space Land Pro the House-passed bill, which was $2.4 grams : Open-space, urban Mr. Speaker, I want to serve notice tionbeau ______tifica tion. historic______preserva- _ here and now-to the Secretary, to the billion, than the Senate bill wnich was 100 ------approximately $4 rwion Title V-Research and Technology : Administrator of Farmers Home, and Housing allowance demonstrati on ------ 10 $10 most particularly to the Acting Assistant Mr. Speaker, :~e 1r; Alcipal changes Aba ndoned properties demon- made in conference are as follows: stration ______Administrator for Rural Housing-that Title VII- Urban Growth and New I do not find in the legislation any justi First. The conference report contains Co mmunity Development: fication fr - ::-licy of quotas affecting the urban growth and new community Pla nni ng grants______5 !> ------farmworKe;' ~. .-J their being served by development provisions which were de Supplementary grants______36 66 66 Loans to cover interest charges___ 240 ------agencies fur 1~. mder section 523(b) (1) leted from the House bill by a narrow Title JX- Miscellaneous : Technical (A). I do !to t 1:z11.l ~!: j" such justification vote. These provisions provide for the assistance to small business con- development of an urban growth policy tractors______1. 5 1.5 1. 5 in their owP 0rocedures. l de "lot believe --T-o-ta-ls_-_-__- __-_- __- __- __-_- __- __- _-__-48-2-. 5-2- ,-31-9.-5--7--.5 there is any adequate justification, and by the President and establish a greatly 7 expanded new community development I suggest that this arbitrary and unsup- 2, 879.5 ported policy be disc, utinued immedi program within the Department of Hous ately unless and until the s.gency i.3 pre ing and Urban Development. Mr. Speaker, there is a matter of pared to seek a legislative basis for it Second. The conference report con from the Congress. tains provisions authorizing the Secre concern I wish to mention and that is tary of Housing and Urban Development the way in which the Farmers Home Ad I further suggest that the Farmers to initiate a: program of Federal insur ministration is administering the tech Home Administrator take affirmative ance against crime. The House bill made nical assistance grants for self-help steps to offset any adverse effects which this program effective immediately; housing authorized under section 523 this quota system may have had on however, the conference report provides (b) <1) of their authority under earlier applicants for self-help technical a short grace period during which the title V. This program was enacted in assistance grants or on potential appli States can move .to provide crime insur 1968 building on the experience of the cant agencies. ance. The report provides that the Sec Office of Economic Opportunity's Mi Mr. JONAS. Mr. Speaker, will the retary would conduct a continuing grant Division, which has been funding gentleman yield? review of the availability of crime insur self-help housing sponsors to work with Mr. PATMAN. I yield to the gentleman ance at affordable rates; if he deter migrant and seasonal farmworkers. from North Carolina. mines that such insurance is not avall- A major purpose in providing Farmers Mr. JONAS. I would most respectfully December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42629 have to dissent from the statement made Mr. PATMAN. I yield to the gentle mit the utilities to go into the housing by the distinguished chairman of the man from Ohio. business through wholly owned subsid committee. The legislation incorporated . Mr. ASm..EY. I think it might be iaries. The conference just could not get in the conference report bears slight re pointed out with respect to title I of the a majority vote for it. semblance to the bill that passed the House bill was stricken out but, of Mr. GERALD R. FORD. Mr. Speaker, House. The gentleman has talked about course, it was an appropriate subject for will the gentleman yield on that point? the House passing the bill so overwhelm the conference. It is worth noting that Mr. WAGGONNER. I am not through ingly. That was an entirely different bill. all of the conferees, the conferees on yet. Let me at him a little while longer, One entire title that was stricken in the the part of the House and the conferees if the gentleman will yield to me. House has now been restored in con on the part of the Senate, were of a mind Mr. PATMAN. It is the gentleman's ference. that the Senate version should prevail, amendment so I am constrained to yield In the House we closed back-door and that title I should be reinstituted. to him. spending. The conferees came in and sur Mr. GERALD R. FORD. Mr. Speaker, Mr. WAGGONNER. Will the gentle rendered on that proposition. This bill is will the gentleman yield? man yield to me for another question? now filled with back-door spending, Mr. PATMAN. I yield to the gentle Mr. PATMAN. Yes. which would permit the Secretary of man from Michigan. Mr. WAGGONNER. How many times, Housing and Urban Development to by Mr. GERALD R. FORD. The conferees how long, how many hours did this com pass the appropriation process. The ac are supposed to go over there and defend mittee sit with the Senate in conference tivities of the Corporation are not con the House position, and you did not do on this bill? trolled by the Corporation Control Act. it. Mr. PATMAN. We sat for several We wrote a provision in the bill on this Mr. ASHLEY. Let me say to the gentle hours; about 12 over 3 days. floor requiring that it be subject to that man from Michigan that title I was Mr. W AGGONNER. For several hours, act. stricken by a very close vote in the and the House conferees gave in in sev Mr. PATMAN. I will yield to the mi House--very close. That same title was eral hours? nority if the minority wishes time. adopted by the Senate with four votes Mr. PATMAN. Our motives were good. Mr. JONAS. Mr. Speaker, will the dissenting; it was adopted overwhelm Mr. WAGGONNER. Let me tell the gentleman yield 1 additional minute? ingly on the part of the Senate, and it gentleman I do have some questions, be Mr. PATMAN. I yield. was very close on the part of the House. cause the gentleman continually refuses Mr. JONAS. If the parliamentary situ It was the judgment of your conferees to defend the House position, and he ation were such that it would be possible and those on the part of the minority of continually brings back something else, to do so, I would offer a motion to re the other body that the Senate position and I am getting sick and tired of it. commit this conference report with in should prevail. I am getting sick and tired of reading structions to restore the appropriation Mr. GERALD R. FORD. Do you not in the newspaper that the Senate takes process in the financing sections of this have an obligation to uphold the version control of House-passed legislation. Any bill, and subject the Corporation created approved by this body? Why do you go tim~ we do not yield to them, they have under it to the Corporation Control Act. over there with the idea that you are a filibuster, but we always yield to them. But I understand that such a motion going to capitulate when you are on the It is time for our conferees to start de would not be in order because the Senate way over to a conference? fending the House position. has already adopted the conference re Mr. ASHLEY. As the chairman said, Mr. PATMAN. The gentleman sounds port and dismissed its conferees. on two out of every three issues that as if he were speaking from knowledge. So the only opportunity that those of were raised in the conference, the House us who are opposed to back-door spend position prevailed. Mr. WAGGONNER. I know about as ing will have to register our objections Mr. PATMAN. We did have some pro much of what is in the bill as the gentle will be to vote down the conference re visions in the House bill we could not man does, because he cannot answer my port, and I intend to vote to do that. defend because the Senate conferees questions. This conference report has Mr. GERALD R. FORD. Mr. Speaker, were adamantly opposed to them. just now been made available. will the gentleman yield? Mr. WAGGONNER. Mr. Speaker, will Mr. GERALD R. FORD. Mr. Speaker, Mr. PATMAN. I yield to the gentleman the gentleman yield? will the gentleman yield? from Michigan. Mr. PATMAN. I yield to the gentleman Mr. PATMAN. I yield to the gentleman Mr. GERALD R. FORD. I share the from Louisiana. from Michigan. views of the gentleman from North Mr. WAGGONNER. Will the gentle Mr. GERALD R. FORD. I am glad the Carolina. The House passed a far more man please explain to me what provisions distinguished chairman brought up this acceptable housing bill, having knocked in the House bill the gentleman sup amendment which was in the bill from out title I, which was bad legislation. ported that he could not defend, when the other body, which would authorize This conference report took the Senate the gentleman voted for this bill the public utilities to get into low-cost version of that provision and then added Mr. PATMAN. There were a couple of housing. The gentleman from Texas has to the Senate version two provisions provisions that had to be removed due opposed that particular provision, and which were in the House version, and to the insistence of the Senate. That is I understand he fought doggedly both of those·provisions were very unac what I am talking about. against accepting the Senate version in ceptable. So you took a bad provision Mr. WAGGONNER. Tell me what pro this instance. He had his heart set in from the other body and added two pro visions of the House-passed bill the gen opposition to that amendment. But when visions in the defeated prcposal in the tleman supported and endorsed that he he went over there with the House ver House version, and we end up with the could not defend? sion on title I, he obviously did not have worse of two worlds. Mr. PATMAN. I did not say I endorsed his heart set on defending the House po The conferees, by capitulating to the them. sition, so he capitulated. Senate, did not stand up to the House of Mir. WAGGONNER. The gentleman I will say only one thing. From now Representatives direction. endorsed them when he voted for them. on we will have to instruct the House Mr. PATMAN. The conferees are proud Mr. PATMAN. No. conferees so they will at least be told to of what they did, because they examined Mr. W AGGONNER. Does the gentle defend the House position. the bill very thoroughly, very carefully, man mean he voted for the bill and did Mr. PATMAN. The gentleman said I and sat for several days trying to agree. not endorse what he voted for? was opposed to the provision before I It was thoroughly gone into, and I think Mr. PATMAN. The gentleman has to went over there. That is not true. In really it is a good bill. The conferees give me time to answer. He cannot just fact, I did not even know it actually was think it is a good bill. keep asking me questions. retained in the Senate bill until we went I would like to say that the Senate Mr. W AGGONNER. I would like to to conference. I thought it had been passed it unanimously. I do not share have an answer to the first one. eliminated. I am surprised the gentle the views of the distinguished gentlemen Mr. PATMAN. We did have a provision man would even offer it. It would have who have spoken in opposition to it. in the Senate bill the gentleman from amended the Public Utilities Act of 1935 Mr. ASHLEY. Mr. Speaker, will the Michigan was much in favor of but it did in aHUD bill. gentleman yield? not prevail in conference. It was to per- Mr. GERALD R. FORD. If the gentle- 42630 CONGRESSIONAL RECORD- HOUSE December 19, 1970 man will yield further on that point, the Mrs. GREEN of Oregon. I thank the the House if they vote this conference gentleman knows very well that provi gentleman for yielding. report down they will vote down the sion was in the Senate version. It was Without speaking to the report now money for public housing, they will vote coauthored by the distinguished Senator before us, but to a much broader issue down the money for the 235 and 236 pro from Michigan, Senator HART, and the ! know nothing about the conference on grams, they will vote down the rent sup distinguished Senator from Michigan, housing-! would say I have partici plement .program. There will be no money Senator GRIFFIN. a bipartisan effort. The pated in conference meetings where on left for these very essential and very im gentleman from Texas knew very well the House side we have fought tena portant programs. So I hope the House that provision was in the bill. ciously for a certain provision and have will not take that action. Mr. PATMAN. I am surprised that the prevailed, and I have gone to conference Mr. PATMAN. Mr. Speaker, I have no distinguished gentlemen, such as the dis committees and seen the House recede further requests for time. tinguished gentleman from Michigan on point after point after point, so that Does the gentleman from New Jersey and the distinguished minority leader, the bill comes back and there is no re (Mr. WIDNALL) want time? would insist on something that is really semblance in the conference committee Mr. WIDNALL. Yes, I would like time. out of order and subject to a point of report to the position taken by the ma Mr. PATMAN. How much time do you order. jority of the House. want? Mr. JONAS. Mr. Speaker, will the gen My suggestion today, for what it is Mr. WIDNALL. We have a total of 1 tleman yield? worth, is that a major change in the hour? Mr. PATMAN. I yield to the gentleman rules might well be considered by the Mr. PATMAN. We have an hour. from North Carolina. House, that the majority of the con Mr. WIDNALL. What have you taken Mr. JONAS. Would the distinguished ferees on the majority side and the ma up to now? chairman of the committee tell the jority of the conferees on the minority The SPEAKER pro 'tempore. The gen House now how many new provisions side should be chosen on the basis that tleman has consumed 20 minutes. are in this conference report that were they supported the position taken by Mr. WIDNALL. Would you yield me not even considered in the House? the House before we go to conference. 20minutes? Mr. PATMAN. I could not tell that, It seems to me, no matter what the Mr. PATMAN. Certainly, if you want there are no new programs put in by the conference session is, then the House, 20 minutes. And you may yield to any conference. without giving instructions, would be body you want to. Mr. JONAS. There are several I know. assured that the majority of the House Mr. PATMAN. You could very quickly Mr. Speaker, before I yield, let me say conferees would be defending the House in conclusion this report was signed by find out. position, as the rules require. Mr. JONAS. I did not have the confer all of the conferees of the House and I thank tne gentleman for yielding. Senate. It is a very carefully prepared ence report until today. This does not pertain to this conference Mr. PATMAN. You have it right now. report, and we are all proud of it. It report. furnishes housing to the people who need Mr. JONAS. I cannot read 35 pages in Mr. PATMAN. I thank the gentle 5 minutes. You were in the conference. housing so badly. woman. She made a very wise sugges Mr. PATMAN. Mr. Speaker, I also in You can tell us how many new provi tion. If you want to change the rules, sions were inserted. clude in my remarks a letter recently re change them; but in this case the con ceived by me from the president of the Mr. BARRE'IT. Mr. Speaker, will the ferees appointed were certainly in sym gentleman yield? National Association of Homebuilders in pathy with the House position. support of the conference report bill: Mr. PATMAN. I yield to the gentle Mr. WAGGONNER. Mr. Speaker, will man from Pennsylvania this section prior to July 2, 1970, said ap activity specified in this paragraph (4), as ice corporations or subsidiaries, whether or proval is hereby deemed to apply to such the Board may approve upon application not the Federal association is a stockholder investment on .and after July 2, 1970, if the therefor by any such service corporation or in such service corporations) would not activities of such corporation consist only otherwise. thereupon exceed 1 percent of the associa of those activities specifically approved by (b) Other service corporations. In addirtion tion's 81Ssets. For the purposes of this section, the Board and any .activities described in to investment in a service corporation which the term "aggregate outstanding investment" paragraph (b) (2) of this section, .and 1f the meets the requirements of paragraph (a) of means the sum of amounts paid for the limitations of this section are complied with. this section, a Federal association which has acquisition of capital stock or securities and (k) Definition of "joint venture." The a charter in the form of Charter N or Charter amounts invested in obligations of service term "joint venture" as used in this section K (rev.) may invest in the capital stock, obli corporaitlons less amounts received from the means any joint undertaking with one or gations, or other securities of any service sale of capital stock or securities 'Of service more persons or legal entities in any form, corporation organized under the laws of the corpora.tions and amounts p.aid to the Fed including a joint tenancy, tenancy in com State, District, Commonwealth, territory, or eral association to retire obligations of serv mon, or partnership .and including invest possession in which the home omce of the ice corporations. ment in .a corporation other than a wholly association is localted 1f : (d) Examination. owned subsidiary. (1) The entire capital stock of such corpo No Federal association may invest in the ration is held by one or more saVings and capital stock, obligations, or other securities (Mrs. SULLIVAN, at the request of loan associations or Federal associations with of any service corporation unless said service Mr. BARRETT, was given permission to a home office in that State, District, Com corporation has executed and filed with the extend her remarks at this point in the monwealth, territory or possession; Supervisory Agent of the Board at the Federal RECORD.) (2) The activities of such corporation, per Home Loan Bank of the district in which formed directly or through one or more such corporation is located a written agree Mrs. SULLIVAN. Mr. Speaker, most of wholly-owned subs.ldla.rles, consist solely of ment, in form prescribed by the Board, that: the Members from both Houses who one or more of the activities specified in sub ( 1) in the case of a service corporation served on the conference committee on divisions (1) through (xi) of paragraph described in paragraph (a) of this section, the housing bill had just gone through (a) (4) 'Of thl:s section, and such other activi such corporation will permit and pay the cost a very long and wearying and often bit ties, including acting as insurance agent or of such examination of the corporation by ter battle over the one bank-holding broker, escrow agent, or trustee under deeds the Board as the Board from time to time company bill-and then we engaged in of trust, and including a joint venture in deems necessary to determine the propriety another protracted series of hard ne any such other activity or any activity speci of any investment by a Federal association fied in said subddvlsions (i) through (xi), under this section; and gotiating sessions on the bill now before as the Board may approve upon applica (2) In the case of a service corporation us. Hence, we knew we had to make tion therefor by such corpora.tion or other described in paragraph (b) of this section, numerous concessions on both sides in wise; and such corporation, if not one which meets the a desire to reach agreement on a com (3) The following llmltations are com requirements of § 6.545.14-3, will permit and promise bill which we could pass in these plied with: pay the cost of such examination and/or final days of the 91st Congress. There ( i) If 5 or more savings and loan associa audit by the Board as the Board may from are many good features in the confer tions (including any Federal association) time to time deem necessary. ence agreement, and I hope it succeeds hold capital stock in such corporation and (e) Disposal of investment. Whenever a no one such association holds more than 40 service corporation engages in an activity in stimulating a desperately needed ex percent of such stock, such corporation, in which is not permissible for or exceeds the pansion in our housing supply and in the cluding any subsidiary, does not incur or limitation on, a service corporation in which availability of construction and mort have outstanding at any time unsecured debt, a Federal association may invest, or when gagefunds. other than to a holder of its capital stock, ever the capital stock ownership require Four provisions of the House bill were in excess of an amount equal to 2 percent ments of this section are not met, a Federal directed to the elimination of scandalous of the assets of the holders of its capital association having an investment in such situations in home financing practices stock, and does not incur or have outstand corporation including any subdivision there in ing at any time secured debt, other than to of, shall dispose of such investment promptly uncovered here the District of Co a holder of its capital stock, in excess of an unless, Within 90 days following the date of lumbia, and found to be true elsewhere amount equal tto 4 percent of such assets mailing of written notice by the Board to in the country as well, by an ad hoc (secured debt Will be deemed to be unse such investing association, the impermissible subcommittee on Home Financing Prac- cured for purposes of this subparagraph (3) activity is discontinued, the limitation is tices and Procedures which I chaired December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42633 in this Congress, by appointment of subcommittee provides for the creation conference report, we would indicate that Chairman PATMAN of the Committee on in the Department of Housing and Urban the Senate conferees joined the House Banking and Currency. Three of those Development of a new position of As conferees in calling now for vigorous use four reforms are contained in the con sistant to the Secretary for assisted hous of the Board's regulatory authority to ference report. ing-to help nonprofit groups which are stop abuses growing out of conflict-of-in PENALTY FOR FALSE CLAIMS interested in providing better housing for terest situations such as my subcommit One of them makes it a Federal crime low-income families to obtain the as tee had spotlighted. to submit false data to an insured sav sistance they urgently need in coping Furthermore, the chairman of the ings and loan on the true value of a with the bureaucratic requirements for Senate committee and the chairman of property on which a mortgage is to be clearance of their applications and fund the House committee agreed that in the granted-a protection against fraud ing. This would be a central clearing of new Congress hearings will be scheduled which the law already accords to Fed fice for all applications, for the dissemi on both sides of the Capitol to go into eral financial institutions and to nearly nation of information, and-most impor this issue comprehensively. all federally insured financial institu tant-for actual service in the prepara Mr. WIDNALL. Mr. Speaker, this con tions, such as banks, credit unions, and tion of forms and other required data. ference report is the product of much de so forth. This office will also have as its assign liberation on the part of both the Senate Because of a longstanding loophole in ment the development of simpler proce and House conferees. The House was able this section of the Criminal Code, in dures, so that the mass of paperwork can to retain the large part of the bill as it sured savings and loans have not had be reduced and much of it eliminated. We passed this body. There are provisions in this same protection. From now on they heard testimony in our hearings of in this conference report which improve will be protected in this fashion. This dividuals having to prepare and sign the House-passed bill. should help to end the deliberate falsifi hundreds of separate documents for Let me draw attention to title VI deal cation of sales prices on homes, often qualification of an assisted housing ing with the direct writing of crime in achieved through fictitious transfers project and in one case there were 80 surance by the Federal Government. through straw parties-one of the major documents required for a single house. The unavailability of crime insurance devices used in Washington, and in many This is ridiculous. at reasonable rates is a serious problem other parts of the country, to inflate the SAVINGS AND LOAN CONFLICTS OF INTEREST in a number of States. The House bill cost of inner city housing. One of the most important recom would have required the HUD Secretary The Government's own stake in this is mendations of my ad hoc subcommittee to begin writing insurance immediately extremely high. That is because many of was that strong and effective regulations in those States where crime insurance is these properties carry mortgages issued not available or available only at unrea be developed and enforced by the Fed sonable rates. by insured savings and loans at excessive eral Home Loan Bank Board covering levels compared to the property's real insider-dealing, self-dealing, and con The conference report delays the di value. When defaults occur, as they often rect Federal writing of crime insurance flicts of interest of all kinds by officials until August 1, 1971. do on these overpriced properties, the of insured savings and loans. These regu Federal Savings and Loan Insurance This was a sound compromise. Insur lations, we said, should cover such things ance is basically an item for State reg Corporation may then have to pick up as preference to appraisal services or the loss. In addition, and this is becom ulation. It is hoped that by delaying the title companies or insurance firms in date when the Secretary of Housing and ing increasingly significant, the FHA which officials of the savings and loan often subsidizes the interest rate for low Urban Development must provide crime have a personal interest, and the whole insurance, those States which have a income families buying these homes at range of abuses we uncovered in which inflated prices, and if the mortgage is serious problem in making crime insur savings and loans were run as virtually ance available, will take the appropriate based on fraudulent claims as to the private little empires rather than as property's value, the Government is then action to provide a solution to this crisis membership organizations imbued with at the State level, and thereby make Fed paying up to 7Y:z percent or 8 percent in public accountability requirements. terest per year on a mortgage which may eral direct crime insurance unnecessary. At my request, the Home Loan Bank The conference report contains a pro be as much as twice what the property Board submitted language to our com vision relating to the compellSaition of may really be worth. mittee for inclusion in the housing bill the owners of existing houses, bought These fraudulent valuations practices language which carried out the subcom under the section 235 program, for de must be halted. Giving the savings and mittee's intention that the Board have fects in the house which should reason loans the protection of the criminal code sufficient authority to issue the kind of ably have been detected and recognized provisions against false claims should regulations we proposed. The Board it by a competent FHA appraisal. Attention help to deter these abuses, if the law is self took no stand on that legislative lan was first brought to this problem through enforced. guage-it merely provided it to me as a an investigation of the 235 program, REGULATING DISTRICT OF COLUMBIA SAVINGS drafting service. Subsequently, however, which is being conducted by the Bank AND LOANS the House modified that language to such ing and Currency Committee. There has Another provision of the House-passed an extent that, in my opinion, it became been evidence of serious abuses in this bill contained in the conference bill meaningless. The Home Loan Bank program. There are families who are brings all insured savings and loans or Board, at that point, submitted to the now living in houses which have major similar institutions in the District of conferees revised language for a conflict defects, and yet were insured by the FHA. Columbia under the direct supervision of-interest amendment which it formally These families now stand alone as in and regulatory authority of the Federal endorsed and supported. nocent victims of vicious speculators, and Home Loan Bank Board, eliminating a In conference, we could not persuade have no effective recourse. no-man's-land, the nonregulation of the Senators at this late date in the 91st It is hoped that this section will pro savings and loans in the District which Congress to pursue this complex issue, on vide some means to make these home are insured by the FSLIC but are not which the Senate committee had held no buyers whole again, and to encourage federally chartered institutions. As we hearings, and so we dropped from the HUD and its Federal Housing Admini found in our investigation, at least one legislation the language on conflict of in stration to scrutinize more closely, the major savings and loan in the District terest passed by the House. quality of homes which are being insured had all of the advantages of Government However, the Senate conferees indi under the 235 homeownership program. insurance of its deposits, but none of the cated that in their opinion the Home There are also new provisions within responsibilities flowing from effective Loan Bank Board under existing law al the bill on section 235, leased housing, Government regulation. It was able to ready had far more power in this area of the rent certificate program. get away v.ith practices we now hope to regulating conflicts of interest among of The demand for this program, both for see eliminated completely here. ficers and directors of insured savings its use in the existing housing :field and SPECIAL ASSISTANT TO HUD SECRETARY FOR and loan institutions than it has ever as a basis for new construction, have ASSISTED HOUSING attempted to use. The conferees agreed made certain adjustments necessary. I A third section of the conference bill that in the statement of managers on hope the decision of the conference com resulting from the work of the ad hoc the part o.f the House to accompany the mi:ttee in these particulars will prevail. 42634 CONGRESSIONAL RECORD-HOUSE December 19, 1970 The rent certificate program was Mr. JONAS. Mr. Speaker, if the affect the entire programs that are now termed by one of the members of the gentleman from New Jersey will yield in existence. majority serving on the conference com further, I say it was not available at the Mr. STANTON. Mr. Speaker, will the mittee as "the most worthwhile housing desk until today. gentleman yield? program that we have." I am grateful for Mr. PATMAN. It was available in the Mr. WIDNALL. I yield to the gentle his remarks. CONGRESSIONAL RECORD for YOU to see and man from Ohio. For 5 years I have struggled to make also at the desk. this program successful, to gain for it Mr. JONAS. It was not available until M:· STANTON. Mr. Speaker, I ap an opportunity to show its worth. With today. I think the gentleman from preciate the gentleman from New Jersey the support of both the majority and Texas who was manager of the confer yielding. I would simply like to say to the minority for measures proposed in ence on the part of the House, should be the Members of the House at this time the conference compromise, I hope this able to tell us whether there are any new that, as one of the conferees, there are has :finally been accomplished. programs inaugurated in this conference several important points that should be Mr. BARRE'IT. Mr. Speaker, would report that the House did not consider. pointed out. First of all, while the gen the gentleman yield to me for a question? That is the issue and not when the re tleman from Michigan is right in point port was available. ing out that we did reinsert title I, that Mr. WIDNALL. Yes. I yield to the was formerly stricken in the House ac gentleman from Pennsylvania. Am I correct that there are some new programs inaugurated in this conference tion, I wish to point out at this time Mr. BARRETT. Is it not true that the that this title I, which is title VII of the Senate had $750 million for operating report? Mr. WIDNALL. The gentleman is cor bill as it now exists, is far different from subsidies for mass transit companies in the original title as originally proposed their language and we cut this down to rect. There are several changes that have been made in order to help in some by the gentleman from Ohio (Mr. AsH zero? LEY), and I know the gentleman would Mr. WIDNALL. It was eliminated com very critical situations. Mr. JONAS. Mr. Speaker, if the gen agree with that, as far as administra pletely by the conferees. There is where tion is concerned, in the administration the House stood up completely against tleman will yield further, I would. like for some conferee to explain the new section, that it had set up a council of the operating subsidies that were going advisers to the White House with Presi to be offered in the Senate bill. programs that are being inaugurated in this conference report that were not dential status-assistant status-has Mr. JONAS. Mr. Speaker, will the even considered when the bill was be been stricken. What has been done this gentleman yield to me? fore the House. advisory council is now within th~ De Mr. WIDNALL. I yield to the gentle Mr. BARRETT. Mr. Speaker, will the partment of Housing and Urban Devel man from North Carolina. gentleman yield? op~ent itself, and in my understanding Mr. JONAS. I asked the gentleman Mr. WIDNALL. I yield to the gentle of 1t, I really cannot conceive of the from Texas while he was in the well to man from Pennsylvania. Housing and Urban Development having explain to the House how many provi Mr. BARRETT. There are no new pro much objection to this bill, because, as a sions are contained in this conference re grams in this conference report. There conferee on our side of the aisle, when port that were not even considered in are improvements in the existing pro you have people of the caliber of Senator the House. My recollection is that the grams; namely, in the Brooke public TOWER Of Texas, Senator BENNETT of gentleman could not answer that ques housing amendments. That was in the Utah, and Senator SPARKMAN of Alabama, tion, but the gentleman from Pennsyl Senate bill. That is in the statutory and when I watch these gentlemen op vania (Mr. BARRETT) then stated that language with reference to an income erate, first in the one-bank holding bill there were none. eligibility for public housing tenants. We then in this pa:rtticular housing bill, and Now my question-and I have only had improved that for the benefit of the tax when these gentlemen fight to sustain access to this conference report since payers. That is not a new program. their positions, I think that the House noon and I did not participate in the con Mr. JONAS. May I say, with all due re conferees, with the exception that it is ference-it is a 35-page report and I am spect to my friend, that this is the first ~rue that on this particular point on giv not sure whether I am correct or not time I have heard of the Federal Gov mg way on this title, I think in general but as I casually review it now I can find ernment going into the direct payment the conference report was perhaps the at least three provisions in this confer of rent. This is a new program, a sub best we could get. ence report that I do not think were stantial variation from the rent supple I would point out to the House one even considered in the House, one of ment program, and the section 230 'pro thing that I have observed in these con which is a new program providing for gram; it is a brandnew one. ferences, and I make this observation the direct payment of rents. Mr. BARRETT. No; there is no direct primarily for the benefit of our chair Another one is permitting the use of payment of rent. man, when the subject of the public util residual receipts from the public housing Mr. JONAS. I would like for the gen ities question came up, in which the program to make up operating deficits. tleman to explain section 504 as con chairman of our committee participated I do not think that was considered, and tained in the conference report wherein vigorously, I say ·to the gentleman from I do not think the section dealing with it says: Michigan that I want him to know that demonstrations with respect to aban In carrying out activities under section the minority Members of the House on doned property was considered in the 501, the Secretary shall undertake on an ex our side of the aisle fought hard for this. House. There may be some others as well. perimental basis a program to demonstrate The Senate fought very hard because of Will the gentleman tell us whether the feasib111ty of providing families of low the backing of the two Senators from the there are some new programs inaugu income with housing allowances to assist State of Michigan, but there was capitu them in obtaining rental housing of their rated by this conference report that were choice in existing standard housing units. lation entirely on the majority side of not considered in the House? the House Members, and I wish to make Mr. PATMAN. Mr. Speaker, will the In other words, this is on an experi that clear to the gentleman from Mich gentleman yield to me for a brief ob mental basis, a program to demonstrate igan. servation? the feasibility of providing families of Further than that, I will say that in Mr. WIDNALL. I yield to the gentle low income with housing allowances for the conferences that I have attended that man from Texas. the purpose of paying their rent. the majority and the minority sides of Mr. PATMAN. May I suggest to the Mr. WIDNALL. For the purpose of the the Senate conferees, when one Senator gentleman from North Carolina that the RECORD, since I control the time, let the has a particular point that he wants to gentleman is mistaken about not having RECORD show that I have yielded to the make, they forget about ideologies, or that report available until noon today. gentleman for the question he just asked. partisanship, and they stick by that. It was in the RECORD at midnight the Mr. JONAS. I thank the gentleman. So I have certainly learned a great deal night before last and was available here Mr. WIDNALL. Mr. Speaker, this is in the last few conferences I have at today, yesterday, last night and this something that we felt would be most tended, and I have to second the gentle morning, and the gentleman had an op helpful in conne~ion with the program woman from Oregon, that the House portunity to see it if the gentleman had to have a complete demonstration of conferees certainly should make some wanted to see it. how it would operate, and how it would greater effort on certain issues. December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42635 Again I appreciate the gentleman's ter conference report which would have lection of families of low income for the yielding. provided our cities and our depressed distribution of monthly housing allowance Mr. BARRETT. Mr. Speaker, will the rural areas with the housing that they payments to such families. In contracting with such organizations, the Secretary is au gentleman yield? so sorely need today. thorized (without limiting his authority un Mr. WIDNALL. I yield to the gentle Mr. WIDNALL. Mr. Speaker, I yield to der any other provision of law) to delegate man from Pennsylvani•a. the gentleman from Ohio Nelson Rockefeller for their efforts. Fraser Mink Van Deerlin The junior Senator from New York support for such funds next year. Fulton, Pa. Mizell Vander Jagt (Mr. GooDELL), also deserves special I am voting for H.R. 19436 because it Fuqua Mollohan Vanlk will provide some moneys for housing. Gallftanakis Monagan Vigorito credit for his work in assuring progres Gallagher Moorhead Wampler sive, imaginative housing legislation. This Congress must keep its promise to Garmatz Morse White Not only did he work to obtain legislation provide decent housing at reasonable Gettys Mosher Widnall rentals for the people of this country. Giaimo Natcher Wilson, to allow Federal subsidies for dormitory Gonzalez Nedzi Charles H. type housing, in order to help meet the And, we must provide construction funds Gray Nix Wyatt desperate plight of thousands of single and operating subsidies for our mass Green, Oreg. Obey Yates transit systems which are so inadequate Gude O'Hara Zablocki people presently housed in decaying Hamilton Olsen SRO's--single room occupancy dwell and desperately needed in the metropoli ings--an endeavor also particularly tan areas of the country. The Congress NAYB-104 pushed by our distinguished colleague authorizes subsidies for farmers, high Abernethy Cederberg Fountain way users, shipping and oil interests, and Anderson. m. Chamberlain Frelinghuysen from Pennsylvania (Mr. MooRHEAD) ; but, Andrews, Ala. Chappell Frey in addition, he succeeded in having numerous industries, but then it is so Arends Collier Goodling adopted an amendment to the Senate sparing when it comes to the needs of the Baring Collins, Tex. Griffin average city dweller. There must be a Belcher Colmer Gross version of the Housing and Urban De Bennett Conable Hall velopment Act of 1970----~an amendment change in our priorities. Congress made Berry Crane Hammer- retained in the final version of the bill a promise to the cities of this country to Betts Daniel, Va. schmidt provide adequate and decent housing. Bow Davis, Wis. Hansen, Idaho coming out of conference which author Brinkley Dennis Harsha izes $20 million in grants for demonstra Let us keep this promise. Brotzman Dickinson Hogan tion projects to deal with the severe prob Mr. PATMAN. Mr. Speaker, I move the Brown, Ohio Dorn Hosmer previous question on the conference re Broyhlll. Va. Duncan Hunt lem of abandoned housing which afilict Buchanan Edwards, Ala. Hutchinson our major cities. Senator GooDELL has port. Burleson, Tex. Erlenborn Jonas made a real contribution to the housing The previous question was ordered. Bush Findley King The SPEAKER pro tempore. The ques Byrnes, Wis. Fisher Kyl field in his capacity as a member of the Cabe!ll Flowers Landgrebe Senate Banking and Currency Com tion is on the conference report. Caffery Flynt Lennon mittee. The question was taken, and the Carter Ford, Gerald R. Lloyd 42638 CONGRESSIONAL RECORD- HOUSE December 19, 1970
McClure Reid, Til. Steiger, Ariz. Mr. Matsuna.ga for, with Mr. Camp against. GENERAL LEAVE TO EXTEND McEwen Rhodes Stubblefield Mr. Morgan for, with Mr. Devine against. Marsh Roberts Talcott Mr. Whalen for, with Mr. Zion against. Mr. PATMAN. Mr. Speaker, I ask Mayne Rousselot Teague, calif. Mr. Riegle for, with Mr. Lukens against. unanimous consent that all Members Miller, Ohio Ruth Thompson, Ga. Mills Satterfield Waggonner Mr. Biaggi for, with Mr. Henderson against. may have 5 legislative days in which to Minshall Saylor Ware Mr. Dingell for, ~with Mr. Quillen against. extend their remarks on the conference Myers Schadeberg Watts Mr. Sandman for, wtth Mr. Wylie against. report on H.R. 19436 just agreed to. Nelsen Schmitz Whitten Mr. Murphy of New York for, with Mr. Der- Nichols Schneebeli Wiggins The SPEAKER pro tempore. Is there winski against. objection to the request of the gentleman Passman Scott Williams Mr. Podell for, with Mr. Jones at North Poage Skubitz Wilson, Bob from Texas? Poff Smith, Calif. Wold Carolina against. Rarick Springer Wyman Mr. Donohue for, with Mr. O'Neal of Geor There was no objection. gia against. NOT VOTING--161 Mr. Brasco for, with Mr. Cramer against. Abbitt Esch Murphy, Ill. Mr. Hays for, with Mr. Cunningham CONFERENCE REPORT ON H.R. 380, Adair Eshleman Murphy, N.Y. against. Addabbo Evins, Tenn. O'Konski TO REPEAL SECTION 7 OF THE Anderson, Fallon O'Neal, Ga. Mr. Rostenkowski for, with Mr. Hagan ACT OF AUGUST 9, 1946 (60 STAT. Tenn. Farbstein Ottinger agains·t. 968) Andrews, Fish Pelly Mrs. Sullivan for, with Mr. Montgomery N.Dak. Foreman Pettis against. Mr. TAYLOR. Mr. Speaker, I call up Annunzio Friedel Philbin Mr. Delaney for, with Mr. HQStings against. the conference report on the bill on Mr. GROSS. I yield to the gentleman (Mr. HoGAN) indicated a few minutes monoxide and poison gases which un from Maryland. ago to various segments of employees. questionably cause damage to the heart Mr. HOGAN. I know the gentleman With regard to firefighters, I am told and to the cardiovascular system, and would not want to give the impression 42642 CONGRESSIONAL RECORD- HOUSE December 19, 1970 that hearings had not been held on this should happen. I hope we will be able to Mr. OLSEN. Mr. Chairman, I rise to legislation. They have, in fact, been held call on them for their support. wholeheartedly support s. 578 and to and all the witnesses interested in tes Mr. MATSUNAGA. Mr. Chairman, commend the committee's unanimous ac tifying were given an opportunity to there are, not one, but two, compelling tion in bringing this worthwhile legisla testify. reasons why the House should today ap tion to the floor of the House. Mr. GROSS. I insist the committee prove S. 578, a bill to extend to federally The early retirement provisions of ex ought to go back into this whole business employed firemen the same early retire isting law were initially limited in appli and revise the law, if necessary. I be ment option now available to Federal cation to agents and subsequently ex lieve it is bad business to establish haz law enforcement personnel. tended to other Federal employees such ardous pay on the basis of early retire First, it is clear that allowing a more as U.S. marshals, prison guards, Federal ment, with such pay coming out of the generous retirement to firemen at an policemen, and Treasury agents, who are retirement fund. earlier time will yield a younger, more subjected to those hazards inherent in Mr. KEITH. Mr. Chairman, will the vigorous and physically able, Federal the performance of their duties. The gentleman yield? firefighting force. preferential treatment has been justi Mr. GROSS. I yield to the gentleman Second, and more importantly, the fied on the basis that law-enforcement from Massachusetts. Federal firefighter deserves this equita activity requires a staff of active, vigor Mr. KEITH. If I understand correctly, ble treatment. ous, physically capable men; and fur it would be possible for firefighting per We now recognize, Mr. Chairman, that ther, to encourage younger men to enter sonnel covered by the legislation to retire certain Federal employees, working in and remain in Federal service, and older at the age of 50 with a pension in the the field of law enforcement, perform men to leave it at an early age. vicinity of $400 a month. Is that correct? extraordinarily hazardous duties, sub I believe there is general agreement Mr. GROSS. It would permit retire jecting them to physical and psychologi that the ability of the average man to ment at the age of 50. I believe the per cal pressures not experienced in other avoid and overcome the hazards involved month cost would be as the gentleman Federal jobs. They are permitted to re in firefighting decreases as he grows states. I know it would amont to some tire at an earlier age, with fewer years of older. In view of the increasing suscept thing in the neighborhood of $176 mil Federal service, than the ordinary Fed ibility to injury with each year on the lion. eral employee. job, it is the committee's belief that Fed Mr. KEITH. I just did a little com There are approximately 12,000 Fed eral :firemen should be accorded the op putation, and figuring that $100 a month eral firefighters, about 350 of them in portunity to shorten their careers. is worth about $25,000, if you were to Hawaii. In 1968 alone, these men battled I believe it is also recognized that en buy that kind of annuity, and you multi over 19,000 fires nationwide. In those actment of this legislation will facilitate ply it by 4, it would be $100,000. That fires 376 persons lost their lives, another the maintenance of relatively younger would be the equity that the man would 2,200 were injured, and almost $300 mil have in that pension at that time, and lion of property was lost. Can there be and more vigorous :firefighting forces when you spread that over a period of 25 any doubt of the peril faced constantly throughout the Federal establishment. years, it is pretty good pay to accumulate To confine a preference of law to a by these brave men? group of employees engaged in hazard that kind of equity for retirement. In view of this substantial threat to Mr. GROSS. I thank the gentleman the health and safety of Federal firemen, ous duty without recognizing other em from Massachusetts for the excellent ob and the increasing susceptibility to in ployees performing equally or, at times, servation he has made, and urge defeat jury that normally comes with advanc more hazardous duties is, in itself, an of the bill. ing age, I believe that firefighters should inequity. Mr. Chairman, let us remedy Mr. HOGAN. Mr. Chainnan, I have be offered this opportunity to shorten this inequity, which has existed far too no further requeSts for time. their careers. long, by unanimously adopting this legis Mr. DULSKI. Mr. Chainnan, I yield Passage of S. 578, Mr. Chairman, will lation. myself 1 minute. mean that the Federal :fireman will be Mr. NIX. Mr. Chairman, I rise in sup I know the estimate of the unfunded able to retire at age 50, following 20 years port of S. 578, a bill which will, at long liability in .the Retirement Fund is $176 of hazardous service, on an unreduced las.t, correct an inequity that has existed million, but I would like to bring to the annuity. This annuity will be computed in the civil service retirement law for attention of the House .that that amount at a fiat rate of 2 percent of the em more than two decades. would be paid over a period of 30 years, Since the late 1940's the retirement ployee's average pay, multiplied by his law has contained a provision which and would amount to only $9% million years of service. each year for the next 30 years. grants spectal early retiTement privi I want to emphasize here that eligibil leges to employees serving in positions, The gentleman from Iowa the New York Times, we Specifically, Senator NELSON suggested and was given permission to address the now find this same 'Vice president of IDS, that the Congress intended to require the House for 1 minute, to revise and extend Mr. Loetller, announcing that he, as a U.S. Commissioner of Education to place his remarks and include extraneous Democrat, was offended by some Re the office of environmental education matter.) publican Party political advertising, and created by H.R. 18260 in the Immediate Mr. THOMPSON of Georgia. Mr. used his corporate authority to impose Office of the Commissioner. Speaker, I rise to call to the attention economic reprisals against the sponsor As you may know, Mr. Speaker, I sit of Members of Congress seve:ool inci ing group. on the Select Subcommittee on Educa dents which suggest a trend toward a Investors Diversified Services, Inc., is tion which held hearings on this bill. In misuse of corporate economic leverage a large Minneapolis-based conglomerate. addition, I was a cosponsor of this legis by officers of conglomerate mutual fund It is one of the largest mutual funds in lation in the House of Representatives. complexes to support or oppose political the world. It has within its complex two Thus, I think that I am rather familiar parties or candidates. Corporate officers securities broker dealer firms, a seat on with the PUrPOSe of this House, at least, have the same right and civic duty as a regional stock exchange, an oil and in enacting this legislation. other individuals, to contribute finan gas drilling fund, an insurance company, I believe that our subcommittee chair cially and speak for or against candi a leasing company, a credit company, a man, the gentleman from Indiana ne for the FBI, and one for gress reflected the same fears that it not want to be surprised. Forewarned is the Army. did. Those who sought to limit lib forearmed, and so it was only good mili Sometimes Army intelligence is care erty should not be surprised to find what tary policy to see that military com less, and "blows its cover" as the saying the apparatus to carry their desires out manders had notice of any possible goes. Thus, in one demonstration, .Army looks like. If it looks like the apparatus trouble before it happened, if possible, or agents disguised as reporters were taking of a military police state, they should not if that were not possible, before the pictures, when some of the demonstra be surprised, for they enacted laws that trouble could spread. tors recognized the bogus newsman's demanded the creation of exactly that So was born the domestic spy network. Army glasses. That blew the cover, and kind of apparatus. As my colleagues can see, it just grew the agent had to retreat. After that the So I do not wholly blame the Army. like Topsy. field office got its agents some civilian Perhaps it is true that the Secretary By the time of the Democratic Con glasses. of the Army did not know, and does not vention of 1968 most people had forgotten In another case, local police raided a know even now, the extent of domestic pretty much about race riots, and were subversive looking outfit, only to find intelligence operations by his military thinking about political riots. The Re they had bagged a half dozen agents, all subordinates. His intelligence agents do publicans had holed up in a Miami for working for the U.S . .Airmy. not report through regular channels, and tress, but the Democrats chose an ac Aside from the perils of this operation he has things to do other than worry cessible place. So, with everyone expect- to liberty, it has its moral problems. December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42649 The Army gets informers through the "For example" he said, "Army intelligence House type filibuster against the consid means that you would expect, usually had agents present in the planning and ac tual march on the Pentagon in the summer ation of this measure which was com blackmail. A GI in trouble with the law of 1968." menced on Thursday. Although I did not finds that if he cooperates, he will never Milltary intelligence, Gonzalez said, "has call the quorwn or demand that the Jour get a court-martial. So informers are no mandate, and probably no legal authority nal be read, I must say frankly that I born, and they are used as long as pos to set up a clandestine intelligence network was in sympathy with the effort to get sible, then discarded. The Army is also 1n the U.S." this kind of matter off the legislative cal beginning to use as agents men who have EXTRALEGAL endar. Now it seems this ill-advised bill long been overseas, and who are not This intell1gence network is extra-legal be given another chance on the :fioor in exactly gentle operators when it comes and 1s in no way coordinated with an all"eady the few days we have left before Christ down to decency and fair play. There extensive system run by the FBI, which has mas. is some indication that the Army is seek legal authority to perform this type of work, Gonzalez said. I had planned on my own sine die ad ing to recruit as domestic agents college The congressman said the Army has four journment tonight because I honestly freshmen, who can be used for a much or more field intelligence offices in the United believe the greatest service I could per longer period than can ordinary inform States and added that "most of these offices form to my constituents would be to con ers, and who can be expected to develop . use clandestine agents to 1nflltrate c1v111an tribute to a situation where there would a far higher degree of professional com organizations and report on their activities be no quorum because if there has ever petence in their work. and plans." been a lameduck session ill-fated from And so it goes. He said that since Army Intelllgence does not coordinate with the FBI, it can lead to the very beginning it has been this one. The point is that the Army is not ludicrous circumstances. Those who argue there was work to do alone to ·blame for all of this. Those who "In one meeting, numbering a total of five should recognize work cannot be done created the climate of fear must also persons planning a demonstration, two were in haste and in the manner we have pro shoulder the load. Those who seek to government agents--one from the FBI and ceeded. It would be difficult to estimate read the political minds of legitimate dis the other from Army intelligence." how much we have cost our own con senters must expect the mind readers to INFILTRATION AIM stituents by this first lameduck session read any mind they please. At present, Gonzalez declared, the Army in 25 years The police power is much to be feared. activity seems aimed at infiltration of orga But, Mr. Speaker, contrary to our Political police power is much more fear nizations which have a "potential" to cause preferences some of us have little alter some, and nowhere so much as in a so ci vii disturbances. native but to set aside the plans we had ciety that would be free. Defining what is "potentially dangerous" is made and return next week if for no oth I applaud those who would defend tricky, the congressman pointed out. "It is clear that the intell1gence net may er reason than to vote against such a freedom. But I say that we must begin very well maintain information on perfectly monstrosity as HR 19446. I have not en defending freedom by our own actions, legitimate groups. gaged in any extensive research as to the by our own responsibilities, by our own "For one thing, there aren't enough real history of this great offering that comes respect for the integrity of free men. revolutionaries around to keep the agents to us from the House Committee on Edu- Those who have fantasies of conspira busy. For another, the Army has a groWing cation and Labor. · cies, and who enacted their fears into number of well-trained agents coming back from Vietnam, and they must be given Jobs. I observe it was not introduced until statutes, should not be surprised that the September 24. However, I do know that powers selected to enforce those laws also "Employing such agents, trained for clan destine jobs overseas, in the United States quite patently, obviously and most ap have fantasies and faults of judgment. seems neither safe nor legal. parently it is an effort by two or three It is time for all of us to disPel the "They may, in fact, be a real menace," he Members to try to make some kind of a fear. warned. name for themselves by passing w!lat Mr. Speaker, I place in the RECORD at Gonzalez said that, generally speaking, could very well be one of the most ex this point an article by Tom McGowan this lntelUgence function is not well known pensive pieces of legislation of this lame of the San Antonio Light: even within the Army. duck session. GoNZALEZ CHARGES: "CiviLIANS SPIED ON" "The intelligence field officers do not re port to the local generals, but have their For several reasons, I happen to be one (By Tom McGowan) own chain of command. of those who hopes that this matter is Military intelligence agents are spying on DRESS AS CIVILIANS put back on the calendar and that we on the U.S. clvllian population, Rep. Henry will be given an opportunity to vote "no." B. Gonzalez charged Wednesday. "Intelligence agents appear on no orga I say this because the best way to be on The Army, the San Antonio congressman nization charts and they generally dress as said, has set up a "supersnooper" network civilians." record on a thing of this kind is to have which would have been the envy o! the Gonzalez warned that the Army "today the roll called, when every Member can colonels' junta which took over Greece. plans to create a professional intelligence be counted. It is easy to say what we "In the mid 1960s, violent dissent seemed force within the United States. might or could have done if we had a to be threatening many cities. The long, hot "This group would not consist of informers chance. The best way to put this kind summer riots of 1966, and student unrest but would 'be recruited from among students of a bill out of the way for good is to made it seem that many cities would be en who would serve as career men. bring it up for a vote and soundly defeat gulfed tn violence no pollee agency oould "And all of this came from the Army's it and put it to rest forever. handle," the congressm.an said. need to plan for containing ciVil disturb ances. The authors of this bill have dreamed RIOT CONTROL "The Greek colonels would like to have up a very catchy title when they call it pnder these circumstances, the Army was what our Army already has developed." the emergency school aid bill of 1970 asked to provide a force of troops trained making it seem as if this must be enacted in riot; control to deal with civil disturb in ances. response to some extreme emergency H. R. 19446 THREATENS OUR if By 1968, the Army had fully prepared situation. The impression is left some troops and contingency plans for deaJlng NEIGHBORHOOD SCHOOlS thing is not done soon our schools are w.tth civil dlstutba.nces in major cities. The SPEAKER. Under a previous ord going to be in bad shape all because "But beyond planning troop movements er of the House, the gentleman from school districts must have financial as and how to employ troops in riot situations, Missouri (Mr. RANDALL) is recognized for sistance to carry on desegregation. Per the Army began to beocme interested 1n an 15 minutes. haps the authors give themselves away, ticipating events. Mr. RANDALL. Mr. Speaker, I deplore however, in the statement of purpose "PLANNED" VIOLENCE the manner in which this body has oper when they announce that the main ob "They wanted to uncover incipient riots ated the last few days. But maybe after jective is to improve education in racially from the beginning and even to learn of all there is an element of good that comes impacted areas. Well, of course, such im planned Violence or protests that could lead from this kind of mismanagement. It has provement is no emergency. Everything to violence. been the fact that we were able to side which could be funded under this bill "So, military inte111gence began to set up can be funded under existing Federal leg a network of agents to operate within the track the so-called Emergency School Aid United States and to be independent of local Act of 1970. islation. The bill is a complete misnomer pollee agencies, the FBI or the normal Army Yesterday, Friday, December 18, there and instead of any emergency, what they ch$ of ~mmand," the congressman said. was quorum call after quorum call in a are trying to do is start a new program 42650 CONGRESSIONAL RECORD-HOUSE December 19, 1970 of very doubtful value which they hope of the prisoners were justified. The fol' ·assist State and local prisons in meeting to make a permanent program. lowing is the published list of the pris these standards. I suppose the worst of the bill is re oners' grievances, as they appeared in I urge our colleagues to read Jack New vealed in section 6. There the cat is reallY the press: field's article which follows and to be let out of the bag, by the wording on First. There 1s a denial of due process, come cosponsors of H.R. 16794: page 26 of the bill, which states the pro speedy justice, and adequate legal repre THE LAW Is AN OUTLAW vision of transportation purposes for sentation. (By Jack Newfield) Second. The Legal Aid Society does not students is to overcome racial imbal It was about 7.45 a.m. on Monday, October ance. But then the authors of the bill provide its clients with a vigorous defense. Third. There is brutal treatment of prison 5. Mayor Lindsay and his press secretary Tom hasten to add in the same section that ers, primarlly blacks and Puerto Ricans. Morgan were inside meeting with the in this does not mean the bill sets up a Fourth. Wives, sisters, mothers who visit mates of the Long Island City Men's House requirement that students be trans are indecently proposed to by omcers at the of Detention after they had ended their re ported to overcome racial imbalance. Of prison. volt peacefully. Released hostages were tell course the bill does not have to make Fifth. Food! is unpalatable, poorly pre ing reporters on the sidewalk outside that the such provision a requirement. OUr mis pared, and "not fit for human consumption." inmates had protected them, had saved. their a Sixth. There should be more law books lives, and that the basic demands o! the reb- guided Health, Education, and Welfare els-lower bail, speedier trials, less overcrowd bureaucrats have set guidelines and even avallable to prisoners preparing their own legal documents. ing-were just. some State agencies have set up legal re Seventh. The prison is infested with "body It was 7.45 a.m. when correction omcer& quirements concerning racial imbalance. lice, roaches, rats and mice." mostly white--began to beat prisoners- All that is needed from this bill then is to Eighth. Clothing should be supplied to mostly black-who had been promised. no re provide the funding for the destruction prisoners detained for long periods of time. prisaJs by the warden. The correction omcers began to systematically club the prisoners of our neighborhood schools. Ninth. There is an inadequate medical sta.tr. in the courtyard of the 86-year-old brick ja.tl If this bill should be enacted the very with ax handles. baseball bats, and riot authorization of the funding will become Tenth. There should be no reprisal against "any of the inmates involved in this protest." sticks. They beat them so savagely that a a source of major inducement for both photographer from the Daily News vomited the bureaucrats at HEW and all the As always happens in these matters, at the sight of the fi.owlng blood and crack courts to order mass busing programs. every public official responsible for the ing bones. The programs would proliferate so the prisons pledged that conditions would be Michael McCardell ·is a reporter for the extravagant funding of this legislation Daily News. He witnessed the beatings from improved; and most important, Mayor the ninth ftoor window of a factory-ware would not prove adequate. John Lindsay and his corrections com house that looked down on the courtyard. The real issue here is whether we are missioner pledged that there would be This is how he described what he saw the going to abandon the policy of neighbor no ·retaliation against the prisoners for next morning in the Daily News. hood schools. Every poll I have seen their participation in the prison rebel "It was a gruesome scene. shows people oppose such an abandon lion. One must assume that this amnesty "About 250 prisoners were sitting on the ment. Even the parents of the blacks was the result of an acknowledgement grass. Behind them, 30 Correction Depart prefer neighborhood schools, because ment guards were lined up, all o! them hold that the grievances of the I>risoners were ing weapons--ax handles, baseball bats, and those who argue that there must be a just. night sticks. racial and ethnic balance if youngsters While criminal charges were not im "One inmate was dragged out a doorway are to have a quality education know mediately brought against the inmates onto a. loading platform and five guards at they are so very, very wrong. by the corrections department, prisoners tacked him with their clubs. They battered. I have not always agreed with our were brutally beaten. What occurred in his head and blood ftowed over his face and President but at his news conference la.st these prisons is now the subject of a law body. He was kicked. o:ff the platform and sev week he stood up and spoke out that he suit in the U.S. District Court of the East eral other guards pounded him again with wa.s committed to preservation of neigh their clubs. District of New York. When I read the 'His limp form tnen was ll!ted o:ff the borhood school concept. All Americans Newfield article, I was deeply angered ground and thrown into a bus as another applauded him for that statement. The because it described in such compelling prisoner was hauled out and belted across the busing provision of this bill is inconsist graphic terms man's inhumanity to man. back with a club. Then more clubs rained ent with the President's well-reasoned Last year I read a book, "Barbarism in down on him untll he was motionless and and logically sound policy for the preser Greece," which described in affidavit blood-soaked. He too was thrown into the vation of neighborhood schools. form what took place in the prisons of bus. This bill is misnamed, unneeded, ex "Another man was pushed out, his hands the Greek junta. The •beatings described above his head. A bat caught him in the travagant, potentially dangerous, divi in the Voice article are comparable. stomach and he doubled over. More clubs sive of our people, and a waste of the tax In relating what happened, Jack New came down on his spine. Eight guards were payer's money. It should never have field wrote: slugging away at one time. been scheduled and should promptly be 'l1he Correction omcers began to system "A fourth prisoner emerged hut rthe guards defeated. atically club the prisoners in the courtyard seemed to let go of him. He began running of the 86-year-old brick jan with ax handles, but the guards caught him and one put a •baseball bats, and riot sticks. They beat them knee into his groin. He toppled over and THE LAW IS AN OUTLAW so savagely that a photographer from the more guards kicked him over and over. n you do when the law is an outlaw?" dren. They sleep with a light on to watch dope. Last night a woman was taken from More and more that is a question that for the rat. The father adds that they a\so 5A because she OD'd. Who's watching her haunts me. It was the National Guard who sleep in their clothes; they do not want to children now? No one talks abcut this." December 19, 1970 CONGRESSIONAL RECORD- HOUSE 42653 One mother, Mrs. Inez Brown, tells the sociation make it plain t'h.at the banking tors involved. (Two were from Michigan, Ed Congressman that she found an apartment industry is highly displeased with PBS's ward R. Hutchinson and Phlllip E. Ruppe, last Friday on Staten Island. Five and a half exposition of its problems and shortcom both Republican.) rooms for $200 a month. Mrs. Brown relates BEFORE "Banks and the Poor" went on the that a caseworker told her the family was not ings. In some areas, the banks placed air, BPS was already under fire and ducking large enough to qualify for such a huge rent. direct pressure on stations in an effort to for cover. The Texas Bankers Association She cannot take the apartment. She con prevent the program from being shown protested. One Texas station refused to carry tinues living in the Broadway Central. The to the public. Some of the comments the show. PBS advised stations that its legal city is being charged $1600 a month for the that have been made since have dis counsel did not believe the list of names vio two rooms, on two separate floors, that she played an irrational and bitter anger to lated the FCC "personal atta{lk" rule. (In now occupies with her four children. Later ward the producers of this excellent any case, the list rolled by so fast it was vir Koch charged, referring to the Staten Island show. So it would not be surprising if tually impossible to study it). apartment, that there were no federal or NET, the producer, showed the film to some state regulations setting rent limits. "If some of these bankers--and their or of the bankers named several days ago and there are restrictions they are of the city's ganizations--tried to lobby Congress inserted some of their comments. Stations own making," he said. against educational television and the also were asked to send any complaints to According to some tenants, nearly 200 of Corporation for Public Broadcasting. NET where a study would be made to see if the children in the hotel do not go to school. Mr. Speaker, I am convinced that any a follow-up program would be needed later. They stay home all day. They play in the such efforts will be firmly rejected by the Such extreme care would seem to show less halls. They ride the elevators. Now they are Congress. The "Banks and the Poor" courage than might be hoped from public excited by the presence of outsiders. They TV. Sad to say, it comes under pressures follow the press photographer. Every time illustrates the need for independent, quite similar to those of commercial TV. PBS the flashgun goes off, they giggle. Fascinated. noncommercial television, and this pro is partly financed by Congress. Financial They all want their pictures taken. The gram should increase, not decrease, con institutions have been large contributors to photographer agrees to snap a few. He asks gressional support. funding for non-commercial TV. them to pose. They do not know how. One Mr. Speaker, the producer of this show, The reactions of Congress and banks, as of the children suggests, "Take a picture of Morton Silverstein of New York, did a well as the strength of public TV in uphold us fighting." They all begin to fight. The tremendous job in producing the docu ing the program, may give the viewer an an camera flashes. mentary. It obviously took a great deal swer on the viability of public TV as a me Billy Cool runs the hotel recreation room. dium of public interest. Cool is not paid. He does the work because of creativity and hard work to illustrate "Free play" followed on Channel 56, with he "digs it." The recreation room is sur on television the complex issues involved another example of something public TV can rounded by a row of chairs. In the middle in banking. More important, the show and should do, something that commercial a table is filled with old magazines. I pick obviously took a rare kind of courage. TV rarely touches. The hour was devoted to one up. It is Young Miss. Its lead article ad Mr. Silverstein is to be commended in a play, "Smouldering," written by Detroit vises, "Get Set for Summer." In a corner the highest of terms and I only hope that actress Berneice Avery, and performed by of the room is a broken ping-pong table. his work on "The Banks and the Poor" Outlet for Opportunity, a group formed to Cool shows me a letter from the Presbyterian encourage and develop talent among the Church promising $150. He explains how he will serve as an inspiration for other net under-privileged. is going to fix up the room. At one end of the works and producers who have shown a Miss Avery's play was without the subtle room is a Christmas tree. The manager of marked lack of both courage and imag nuances needed to better mirror real life, and the hotel points out that he donated the ination on economic issues. the acting was rudimentary, with actors too tree. Mr. Speaker, I place in the RECORD obviously speaking lines, rather then feeling An older boy, certainly in his 20s, re some recent reviews of "The Banks and them. • marks, "A lot of these mothers are depressed. the Poor": Don Vest, as the husband caught between They don't have their man with them. The wife and mother, was the surest in his :role. only thing they can do is get high. At least [From the Detroit Free Press, Nov. 11, 1970) Vernett Smith, as the shrill wife, and Synovia that way they can feel good for a little "TOUGH, INFORMATIVE REPORT" ABOUT BANKS Donder, as the vengeful mother, handled while." AND THE PooR their single facet roles rather well. Dwight Someone asked a boy of about 15 how he (By Bettelou Peterson) Garland and Larry Westcott were the son and liked living in the hotel. He replied, "How his friend. can you ask me a question like that?" "Banks and the Poor," on "Realities," (P "Smouldering" was indeed an outlet for BS, Monday) was the sort of tough, inform opportunity to say something via drama, to ative reporting that TV does too seldom. It showcase local talent. Channel 56 should do was an hour that probably could have more of the same. .. BANKS AND THE POOR" PROVES turned up only on public TV. THE NEED FOR PUBLIC BROAD The commercial networks have never been CASTING noted for their probing in areas where spon [From the Pittsburgh Post-Gazette, sors might holler "foul." Bankers are good Nov. 11, 1970] xcellent documentary, the Chase Manhattan Bank to small local "The Banks and the Poor." This pro manager of the local NET outlet, after at loan offi.ces. tending a preview at the current meeting of gram, which originally appeared on tele Banking performance, _good and bad, in the National Association of Educational vision November 9, has done more than areas of social responsibility was docu Broadcasters in Washington, D.C. The one any other television production to ex mented. So was legislative response to new hour program, which drew favorable reviews plain t'he banking industry and its rela laws governing bank business. David Rocke in the New York Times and by the Associated tionships to the public. feller, of the Chase, spoke, ably for the Press, investigated the credit policies of com It is obvious that this show could not bankers. Rep. Wright Patman, chairman of mercial and savings and loan banks, point have been produced and shown without the House Banking and Commerce Commit ing out how these policies ultimately affect tee, covered some legislative problems. the poor in the areas of housing, personal people in the Public Broadcasting Serv The man foreclosing the mortgage or col loans and consumer credit. ice and the National Education Tele lecting the loan has been the classic villain The program also cited the potential con vision network who were willing to stand for centuries. Yet, Silverstein was able to flict of interest when a Congressman or Sen up to the pressures from t'h.e banking in achieve a fair measure of balance in his re ator having bank holdings or directorships dustry. In my mind the justification for port, though many of the questions raised votes on 'banking legislation. It concluded sUJPport of public broadcasting centers were not answered. with a list of 98 United States Senators and around its willingness to face forthrighly Particularly knotty is the subject of leg Congressmen in this category. controversial issues such as banking. islative ethics. It was noted that nearly 100 On this list were the names of four West Certainly "The Banks and The Poor" congressmen have private interests in banks ern Pennsylvania Congressmen: William S. or in law firms with client banks. No accusa Moorhead (D-Allegheny Co.), Thomas E. has justified the congressional support of tions were made beyond noting that there Morgan (D-Fredericktown, Washington Co.), the Corporation for Public Broadcasting. was an appearance of con:flict in disregard of John P. Saylor (R-Cambria Co.) and J. Irving The public comments made by bankers a Congressional rule. The hour ended with Whalley (R-Somerset Co.) . Moorhead was and officers of the American Bankers A/3- an unreeling of the names of those legisla- specially noted as being a member of a com- 42654 CONGRESSIONAL RECORD-HOUSE December 19, 1970 mittee "most pertinent to banking legisla give him seven days notice and an opportu fiict of interest faced by senators and con tion." the Banking and Currency Commit nity to reply. gressmen who have be.nk1ng connections, tee. ROCKEFELLER showed the names of all such elected officlals. Senator Hugh Scott (R-Pa.) was among Yesterday PBS notified the 180 stations Sen. Howard Baker of Tennessee was listed four membership 1n law firms representing scheduled to carry the program of the possi among the senators who serve on the board banking clients. bility of official protests. of directors of a bank. "Bankers ma.y have some legitimate res Chairman David Rockefeller of Chase Man ervations about the TV study of credit poli hattan Bank in New York and Treasury [From the Houston Chronicle, November 10, cies of the banking industry, but for the lay Secretary David Kennedy also are involved 1970] man the program was a fine and laudable ex in the dispute. PBS' "REALITIES" SNAPS AT BANKING GIANTS ample of pinpointing crucial economic prac Rockefeller is shown on the program en tices that require wide d.iscussion. . . . Spe gaged in a debate with Rep. Wright Patman (By Ann Hodges) cial kudos go to 'Banks and the Poor• for (D-Tex.), chairman of the House Banking Well, what do you know-fearless investi meeting head on the issue of con1Uct of in Committee. He asked to see that part of the gative reporting on TV isn't entirely dead terest in Congress . • ." program in advance and was turned down. after all. It came out from wherever it's If the WQED management isn't ashamed NET said Kennedy refused to discuss with been hiding Monday night on Ch. 8 and PBS of itself for running scared, I at least, am its reporter Patman's assertion that he stlll with a snap at the heels of such mighty ashamed for it. gets a $5000 monthly pension from the Con giants as the Chase Manhattan Bank, savings Just prior to the preemption of the pro tinental lllinois Bank, of which he former and loan associations and some legislative gram on Monday night John Rdberts, speak ly was chairman. gentlemen on Capitol Hill. ing for WQED, made a brief announcement With its Realities report on "Banks and to the effect that the NET show would be the Poor," PBS has stirred up the hornet. carried at a later date, when a more balanced [From the Memphis Press-Scimltar, Nov. 10, 1970] Indeed, the buzzing began even before the presentation would be possible. show, some of it in the form of protest from Yesterday a station spokesman explained SHOCKING REVELATIONS ARE MADE ON NET's the Texas Bankers Assn. PBS stations in Lub that the management felt that the program "BANKS AND THE PooR" bock and Austin-San Antonio decided not backed objectivity as presented on NET. He (By Mary Ann Lee) to run it at all. stated that a local "answering program" lo "The rich get richer and the poor get Happily, Houston stuck to the schedule. cally oriented and designed to bring out "oth poorer,'' the song sayf§. "Banks and ~ Ch. 8 did add a local disclaimer, pointing er aspects" of the case is ·being prepared. It Poor," last night's "NET Realities" produc out that two of the six situations examined will be run immediately following the de tion on channel 10 was a reveaJlng hour cannot happen in Texas, namely garnish layed telecast of Monday's report. that showed some of the reasons "the poor ment or attachment of wages and forced sale No date has been set for this back-to-hack get poorer." of a. person's home to satisfy default on a telecast. The hour-long emminlng of credit poU loan payment. The station also announced Whlle there can be no question that local cies was a public relations nightmare f-or that local bankers will have equal time to station management has not only the right, the nation's banking institutions, exposing, refute or answer any PBS charges they con but the obl1gation to decide what wilt and among other uncomfortable matters, the role sider unfair. will not be broadcast by the station, tt banks play in perpetuating slum oondLtions The date of that program has not been set, seems to me that 1n this instance, particu in ghetto areas. The documentary showed but it is a wise move of Ch. 8 to provide the larly in consideration of all the advance how savings and loan 'banks finance slum time. The documentary was a sharp and publicity, "Banks and the Poor" should have housing by lendilng to slumlords and specu provocative indictment that banking insti been carried as advertised. The "answering lators. tutions have failed to meet the needs of program" could then have been carefully It also exposed how a well publicized plan low-income America, in specific details prepared and aired with attendent publlctty to rebuild the Bedford-Stuyvesant area of naming names, addresses and cases. at a later date. New York-in which 80 banks promised to The editing was slick and pointed to sup As Jack Gould, of the Times, noted 1n his invest $100 million-has only amounted, sp port the show's charges, with music, careful review carried in yesterday's late editions of far, to an $8 mlllion mvestment. The big placement of participants statements and should stop having the jitters. Morton SH hitch oomes from the fact that the prom even TV commercials extolling the contribu verstein's documentary . . . was a job well J.Sed money is largely earmarked for single tions of big money institutions, counter worth doing for non-readers of the Wall family dwelMngs, a commodity there is Uttle balanced by scenes of slum dwellers and Street Journal. call for in low income ghettos. Congressman consumers hounded by creditors. Wright Patman of Texas, a long time critic One of the most effective sections was a [From the San Francisco Examiner, of ba.nk1ng institutions, categorized the ex combined playback of separate plain-talk Nov. 9, 1970} planations of the Bedford-Stuyvesant stall interviews with chairman David Rockefeller TROUBLE BREWING FOR TV BANK SHOW by the Chase-Manhattan Bank's David Rock of Chase Manhattan Bank and Rep. Wright efeller a.s. "hogwash." Patman, D-Texas, chairman of the House NEW YoRK.-A program to be aired tonight One of the most shocking revelations of Banking Committee. on Slbout 180 TV stations raises two con the program came as Bess Myerson Grant, "Chase Manhattan has millions for gam troversial issues affecting Congressmen and New York's Consumer Affairs commissioner, bling casinos and only pennies for the poor," banking, and could lead to official protests. explained the "Holder 1n Due Course" doc said Patman. One is whether Congressmen shoUld be trine. Under this doctrine--which exists in "I understand he (Patman) was turned allowed to own bank stocks or serve as bank 45 of the 50 states-a consumer who buys on down once by one of his Texas banks, and directors or consultants. The chairman of credit from a retail company or home repairs he hasn't felt very kind.ly towards banks since the ethics committee of the Association of contractor may find that h1s debt has been then," said Rockefeller. the Bar of New York City Louis H. Loeb, con sold to a bank. Hidden cameras were used to illustrate tends Congressmen should divest them The buyer then owes the bank the money, loan practices: and another sequence showed selves of all interest or aftlllation with not the original creditor, and the debt is how a Philadelphia bank was the object of a banks. legal even if merchandilse is never delivered, street demonstration after alleged insulting ' ·BATTLE HYMN" home repairs are shoddy or the merchandise harrassment of delinquent debtors. The other is whether the program, "Banks 1s faulty. The bank has no responsiblllty to All of it was businesslike and hard-hitting, and the Poor," violates the Federal Com make good on the retailer or contractor's and while the producers were plainly on the munications Commission's rules against per bargain. The consumer 1s left in the lurch. side of the poor, the financiers did get a sonal attack. The Texas Bankers Association Although statistics show that 95 per cent chance to be heard, too. has charged it does. of all borrowers, including poor ones, pay Among their sp'Jkesmen was Houston's Nat (The program will be seen at 9 tonight back their debts, banks are reluctant to loan Rogers, president of First City National Bank on KQED, Channel 9.) money to poor people. The only recourse is to and immediate past president of the Amer The climax of the program, which gen borrow from finance companies which, in ican Bankers Assn. He noted that finance erally charges that banks victimize the poor some states, can charge a maXilmum annual companies are legitimate business and banks by discriminating in favor of the well-to-do interest rate o.f 36 per cent on s,meJl loans. serve them. as such. "They fill a. specda.l niche in offering their services, shows a. list of 124 Although banks don't like to lend money to in the financial community, though we have senators and representatives With bank the poor, the program charged that they lib seen important advances in small loans in affiliations. erally lend money to the high interest finance banking in the past 20 years." The list was furnished by Loeb's ethics companies to which ·the poor must turn for At the end, there was roll call of 98 sen commlttee. On the program, it is run to the loans. ators and congressmen who, as shareholders tune of the "The Battle Hymn of the Re Informative and, by its very nature, highly or directors of banking instiutions, have dis public." controversial, the program was an unusually regarded a congressional rule prohibiting The Public Broadcasting Service and Na brave piece of reporting. Producer Morton voting on legislation when there is a con tional Educational Television network claim Silverstein stepped on some highly-placed flict of interest. the program does not violate the personal toes in his effort to pore light into some Finally there were suggestions for possible attack rule, which requires TV stations con dark comers of society. remedies. Judging from the disturbing TV templating a. personal attack on anyone to The program, which focused on the con- hour, remedies are indeed in order. December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42655 [From the Memphis Commercial Appeal, about chummy, altruistic baln.ks, perhaps the program carefully and stood ready to offer Nov. 11, 1970} their answer is forthoom.ing in this medium. the bankers equal time to present their point TV TAKES A STERN LooK AT BANKERS One thing is for sure: Everyone, not just of view if they wished it. bankers, is interested in money. It's a good One irony in the Dallas situation: the same (By Larry Williams) subject for TV. day that the T .B.A. sent out its letter on Just as satire is not serving its purpose "The Banks and the Poor" is a documen "Banks and the Poor," KERA sent a letter when it fails to needle and cause anger, a tary that deserves-indeed, demands-re out to members of the Dallas banking com documentary is nothing when it fails to peating. I hope Channel 10 will get around munity asking them to support the station. arouse. to it. Welles said he believed the bankers in Dal Just how much the Realities documentary, And I hope Channel 10 also will keep the las had obeh&ved more than fairly eJbout the "The Banks and the Poor," got under a lot lines open on controverslal shows. I under prcgram. of skin, no one at this point seems to know. stand this documentary was shOWn to a In Houston, Nat Rogers, an officer of the Channel 10 here had received only one phone group of Memphis bankers before it went American Bankers Association and president call yesterday in response to th·e show, this on the air. It makes you wonder. If the bank of First City National Bank of Houston, who from a man who cheered and asked for oth ers had ;ra.1sed. enough sand, would Channel appears in the documentary to defend the ers like it. 10 have refused to carry the show? bankers' role, made what seems to have been Some television stations didn't even run As for the documentary reaching a lot of the most intelliegnt response to the program. the documentary for fear it would make people, there is this encouraging note. The Rogers and several other Houston -bankers bankers mad. But, thank all that's holy, most recent audience survey for Channel 10 did ask KUHT if they could preview the pro Channel 10 didn't take that route. It occa shows that it has improved its rating by gram, but when •they came to the station to sionally has in the past, unfortunately, and 158 per cent over a year ago, the largest path do so, they brought several representatives of that should stop. in the nation. Houstons' poor with them. Staffers from I sat amazed as Morton Silverstein's doc O.E.O. and the Houston Legal Foundation umentary rolled on the screen. It pinpointed [From the Buffalo Courier Express, came with the bankers and participated in economic practices that should be discussed Nov. 15, 1970] the discussion after the preview. openly and brought to the attention of as Station manager Jim Bowers said there was many people as possible. It did so Without FRONTIER FOCUS never the slightest suggestion from the hedging or copping out. A great fuss has been raised over the docu bankers that the program not be aired. The "The Banks and the Poor" explored the mentary, "Banks and the Poor," a production station offered the bankers equal time but job of the banking industry in aiding low of the Public Broadcasting Service to be re they have not yet decided whether they will cost public housing and it did so mostly peated on "Realities" at 7 tonight on Ch. 17. tadte it. in the form of statements of Representative It seems to the public TV stations fear Rogers ss!d, "The only real complaint I Wright Patman (D-Texas) and David Rocke protests from legiSilators named as bank di have is that the program tarred the bankers feller, chairman of the Chase Manhattan rectors, associated with law firms having and the savings and loan people with the Bank. bank clients, or as having financial holdings same brush. But we're accustomed to over Rockefeller, of course, defended the bank in banks. It would be di.fll.cult to ftnd a. simplification. When people see :the contrasts industry and drew the ire of Patman, the lawyer-legislator outside these categories. we have in this country between great wealth chairman of the House Banking and Cur But even more foolish is the stations' fear and great poverty, they're apt to think tha.t rency Committee. There was more than just of reprisals for saying in the program that it the banks, with their great wealth, could talk. Silverstein effectively intermingled is more difficult for a poor man to get a bank solve the problem. And of course lit's just not shots of a luxurious gambling resort in the loan than a rich one. So what else is new? that simple." Bahamas-for which Chase Manhattan ar At KTXT In Lubbock, program di kan spent quite a bit of time after the pre mined-it contained nothing that is not true balance while making your editorial points, view <:onvincing the bankers that it would It simply was made to appear that altruism the hard moral being: there are not two sides be very bad public relations if they were is not among the industry's most prominent to every story, but almost always people on to insist that the program not be shown at charcteristics. And on that point, there is two sides of every story. all, that it would, in effect, be an admission really little basis for debate. Even if it shivered the staves of that oozing of guilt. Nor has the industry, so far as we Im.ow, Washington public tv pork barrel, it was in The original plan at KIURN was to have claimed that the show was inaccurate. The spired viewing to see the names of all those a meeting of the stations board of trustees principaJ. objection apparently is to the pro PTV Senate and Congressional bankrollers to decide on whether to air the program. The gram's dramatic techniques. As an example, listed as having bank connections and scored meeting had not been held as of Monday. shots of slum housing or other poverty con for, shall we say, possible unethical practices. Four of the 36 members of the board are ditions frequently were shown in .sharp con Bn.L. officers of banks including Howard Cox, the trast wtth views of bank-financed affi.uence. board vice-chairman, who is also vice-chair The dramatic impact of the technique is [From Newsday, Nov. 12, 1970] obvious, and perhaps industry spokesmen man of the board of Capitol National Bank. THE OTHER SIDE OF BANKING Several other board members are-big busi are rlght in saying that it portrayed bank nessmen who deal with banks regularly. Nine ing unfairly. If that is the case-and the (By Marvin Kitman) banking and financial institutions contribute matter is under study by the Public Broad Anyone who watches television commer to KLRN, which, like most N.E.T. outlets, is casting Service-then the banks ought tore cials gets the impression that bankers are in financial straits. ceive time for rebuttal. benign, kindly, humane, helpful men, some None of the N.E.T. outlets reported hear But at not time should serious investiga place between doctors and social workers in ing from any of the states U.S. representa tive reporting be withheld from ·the air waves the range of professionals who want to be tives. Several of them appear on the pro simply because its dramatic techniques are our friends. Nothing seems to make bank gram. held by some to be objectionable. Accuracy ers happier than giving away wonderful pres Wright Patman, that crusty old bugbear of ought to be the sole determining factor on ents for the privilege of watching our money. the bankers, is naturally featured. Interviews whether a show is aired. I can hardly remember the old days, when with Patman and David Rockefeller, chair One of public television's strongest points bankers had a reputation for committing a man of the board of Chase Manhattan Bank, is that it-unlike commercial television. lot of unfriendly acts. There was a song, are neatly interspliced so that they appear to which depends on advertising and at times a kind of commercial during the depres be rebutting one another. has catered to the prejudices of its sponsor sion, which began: "The banks are made Five Texan congressmen are featured on can freely indulge in responsible muckrak of marblejThere's a guard at every door / The an un-honor roll toward the end of the pro ing. If public television bends to the pres vaults are filled with silver /That the work gram: a list of congressmen who either have sures of government, private backers or ers sweated for." It was very popular around bank holdings or are bank directors and who powerful interests such as the ba.nk.ing com the foreclosure courts. have violated the House rule by taking part munity the way commercial TV too often It always gave me a sense of joy and in votes on banking legislation. They are bends to the whims of its advertisers, then it wonderment that the evil and rapacious Jack Brooks, Bob Casey, J. J. Pickle, Ray becomes a useless and innocuous medium. banker had reformed, had seen the light and Roberts, and Omar Burleson. Burleson, lucky In preparing programs like "Banks and the was now the friend of the poor, regardless fellow, got a star after his name on the llst Poor," public television does a job that com of how much money he earned. Earlier thiS be<:ause he sits on a committee which is mercial network news departments largely week the Public Broadcasting Service came pertinent to banking legislation. leave undone. As such, public television dis along with a documentary titled "Banks and Schenkkan told The Daily Texan that he charges a vital responsib1Uty to its viewers the Poor"-it w111 be repeated on Ch. 13 considered the list unfair since it makes no and it is up to regional ETV stations to help Saturday at 3 PM-which suggests that it distinction as to whether the men voted for in carrying out that responsib1llty. has all been an illusion. or against banking interests in the roll calls David Rockefeller and Friends at the Chase in which they participated. The House rule [From Variety, Nov. 11, 1970] Manhattan Bank, for example, are into help makes no distinction either. BANKS AND THE POOR-REALITIES ing slumlords milk properties and are out It is difficult to judge the fairness of the Exec. Producer: A. H. Perlmutter; Pro of low-income housing. What really excites documentary according to the Federal Com ducer-Writer: Morton Silverstein; 60 Mins., the fiduciary department Is not rebuilding munication Commissions fairness doctrine, Mon., 9 p.m.; PBS (via NET). Bedford-Stuyvesant, as the commercials lead which is death to investigative reporting. Producer Mort Silverstein ("What Harvest one to believe, but building gambling ca Strictly interpreted, the doctrine would re for ·the Reaper?". "The Poor Pay More." "Jus sinos in the Bahamas. Well, tourists, gamblers quire a documentary on air pollution to tice and the Poor") has created enough te and resort owners are people, too, and if spend half its time on why air pollution is lemetry hours to stage a festival on eco Chase Manhattan didn't help them, some good for people. "Banks and the Poor" is an nomic oppression. other bank would. Then Morton Silverstein's dooumentary re 4 investigation into oppressive banking prac And that's not a bad idea for public tele tices. It does not spend half its time dwelllng vealed that a lot of self-respecting banks and vision in years to come, once it is wrested savings and loan associations are :financing on all the worthy and charitable endeavors from the clutches of Congress and their bu of bankers. the finance companies, like Beneficial, which reaucratic sisters of the system. Anyhow, in lend money to the same poor people whom this latest effort, Silverstein showed himself t he banks turn away as bad credit risks. [From the Roanoke Times, Nov. 14, 1970] an experienced master of this kind of expose. Th ey also are the money men supporting With considerable imagination and technical t he home-improvement companies, which ETV STATIONS SHOULDN'T BLACK OuT HARD skill, Silverstein-:-and researcher Carol An HrrTING INVESTIGATIVE REPORTING shien and editor Larry Solomon-left no h ave been known to fleece their customers. We were disappointed to :learn that the loopholes for legitimate screaming by the Silverstein makes the bankers sound like Central Virginia Educational Television bankers and solons who were the principal ordinary businessmen with recognimbly hu Corp. chose not rto air a recent documentary marks of this muckraker. man faults, such as greed, close-flstedlll.ess, film entitled "Banks and the Poor." For example, David Rockefeller, chairman untrustworthiness, e.nd a. poorly developed In our view-, Richmond's publicly support of the mighty Chase Manhattan, was given sense of social consciousness. Nobody I would ed station is gullty of gross negligence of ample air time to defend the credit policy of want as a friend. its responsibility to viewers. (Roanoke and his institution, especially its soiTy record of The first fellow to be dropped fi"om my Norfolk ETV stations ran the program de social responsibll1ty in the ghettos. But, as circle is David Rockefeller. A man of whom spite adverse background pressure from ele his arguments were cut back and forth with it has been said thalt he is so rich that he ments of the banking community.) crusty Rep. Wright Patman, chairman of the keeps his Swiss money in American banks, The program, as its title implies, deals House Committee on Banking and Currency, Rockefeller .appears in the documentary as with the relationship between the American and as they followed the plushy and unctu an affable friend of the absentee owner, a. banking Industry and the nation's poor ous Chase Manhattan TV blurb on the bank's euphezn.lsm for slumlord.. But he is a rather particularly in the areas of personal loans, good works in the ghetto, Rockefeller's case bland vlll.ain. consumer credit and slum housing. The in suffered audibly and visibly from lack of co Rockefeller seems bemused by all the in dustry's reluctance to finance low-cost hous gency. The same applied to st11f and proper terest paid to the activities o! bankers by ing and to make personal loans to the poor spokesmen for the American Banking Assn. men like Rep. Wright ~tman (D-Tex.), the o:tten forcing the needy to borrow from other and the First Pennsylvania Bank of Philadel friend of the poor in the House banking sources at high interest---was made very phia, which was scored !or its brutally rude establishment. _He suggests that Patman's clear. So were bankers' ties to congressmen. collection policies among the poor. Beads o! interest in the subject stems from his once Banks are in business to make money, of perspiration are a telling video prop. being turned down by a Texas bank fo:r a course, and their reluctance to Invest In All this explaining away was submerged in loan. Patman, in another interview, denies high-risk ventures is completely understand clear and vital statistics and apparently far the charge. It was a very mild lbtt of character able in that context. The banks' point o! more deeply involved spokesmen on the other assa.ssinatton, considering wh.at could have view was given considerable time in the pro side, not to mention the emotional impa.<:t been said. gram. of the view from the poor themselves. Equally interesting is the list of congress The important point about the program, To the trade, this was an excellent ex men and senators which concludes rthe show. however, is that--eo far as has been deter- ample of how to lay in an appearance of These are the 123 legislators Silverstein December 19, 1970 CONGRESSIONAL RECORD-HOUSE 42657
cLaimed had bank holdings, served as bank behind in his payments. Her house is put on expressed in the TV commercials shown in directors or belonged to law firms with bank the auction block, even though only $157.69 juxtaposition with the realities, also told its clients. is owed on ·the original automobile debt. own damning story in an atmosphere tinged I certainly don't want to be the one to The program suffers somewhat from poor with sarcasm. defend rba.nkers or congressmen. What im organization; also it doesn't always manage Silverstein has staked out a juicy area for pressed me about the list, however, was the to reduce its complex subject to understand himself, as shown in previous documentaries grealt number of men Who a;re not personally able form for the layman. Still, its flaws are on "The Poor Pay More,'' "Justice and the involved in an industry which they reguLate. more than offset by its boldness. "Banks ann Poor" and "What Harvest for the Reaper?" The running of a. list of names like this is the Poor" winds up by showing the names of His type of indignant, finger-pointing muck sometimes more formidable than meaningful. nearly 150 members of the US Senate and raking is much needed as a sa.lubious !actor The implication o! the list is that the repre the House of Representatives who either have in a sensitive area. sentatives and senators are in the pockets financial holdings in banks, serve as bank di o! the banking industry; but wh.o 1s to say rectors or are associated with law firms hav (From the VUlage Voioe, Nov.19, 1970] that lthe legislators don't have the banks ing bank clients. The list comes from the ARE YOU THERE, MR. SULZBERGER? in :their pockets? "Banks and the Poor" makes ethics committee of the New York City Bar Association, which has repeatedly, and with "Banks and the .Poor," an NET documen the mistake o! assuming lthat there is some tary shown on Channel 13 on November 9 is out effect, called for Congressm~n to divest thing unethical about conflict of iillterest a prime example of the kind and quality of todray. themselves of such interests so as to remove the taint of conflict of interests. I wouldn't investigating reporting that has all but dis The best that oa.n be said for the list is be surprised if some of those interests now appeared from the commercial networks. t·biat 123 of our representaltives in Washing called on PBS to divest itself of its missionary (can you imagine Mike Wallace or Harry Rea ton must be very fa.millar with lthe banking spirit, but the spirit, and Morton Silverstein's soner saying this: ". . . The total assets o! business. Becau.Se o! this !a.milia.rity, the production, are grand. savings and loan associations have grown to hope is toot they will someday have sug $169,630 mill1on. These banks are required gestions for making •banking a more positive [From the Boston Globe, Nov. 10, 19701 under federal cha.rler to provide !or the fi voice in society. nancing of homes, to be a main resource !or "BANKS AND THE PooR"-DOCUMENTARY ON a community's housing funds. But of the [From the New Republic, Nov. 28, 1970] BANKS AND POVERTY $169 billion plus assets, the best estimate by POTI'ED PLANTS, PADDED BANKS (By Percy Shain) the House Banking and Currency Commit But NET's interests extend !ar beyond How It began and ended most agreeably and tee is that only a fraction over zero per cent To Do It-even into How Not To Do It, which deceptively with a line of scantily clad cho has gone toward the fin:a.ncl.ng of low in might well be the subtitle of its new docu rus girls singing about the virtues of come housing." mentary, "Banks and the Poor." This pro "Money," led by a young-looking Ginger Or thls-"Compounding this figure is the gram is powerful stuff-imagine Public Rogers, as clipped from a 1930 movie musical. charge by a Congressional ad hoc subcommit Broadcasting attacking Fortress Money, ex But in between was as savage and hard tee that money is lent instead to slum specu posing the !allure of financial institutions hitting a documentary on banking abuses as lators, and that many slums are perpetuated to help the ghetto poor. It was shown in has ever hit the television screen. In raking by Savings and Loan Associations through banks and bankers over the coals for their their financing of absentee owners-in this most areas in the second week of November alleged deficiencies in neglecting the poor, case a euphemism for slumlords." on the PBS network, but because o! its con the program spread its shots over the whole troversial nature PBS warned its 198 affili There was a lot more, much o! it harsher, finance field, including home improvement all of it documented. Many of those who ate stations to stand ready !or protests. Sure frauds, and even the activities of Washing watched the program, by the way, are likely enough the Texas Bankers Association turned ton lobbyists and the links between con to see David Rockefeller in ctuite a changed on the protest pressure before broadcast time, gressmen and the banking industry that perspective from now on. I mean those mid causing one of the five Texas educational sta perpetuate inequitable conditions. dle-class liberals who previously had more tions to decline to carry the program, another This "Realities" expose on PBS last night or less bought the Rockefeller line that his to postpone it. Just how many other stations did not hesitate to name names of the very end of the banking business was now at refused to air it won't be known for several rich and influential who have sanctioned or tached to the social gospel.) weeks. NET's counsel advised the stations indulged in these tactics and, in fact, listed I was glad to see that the program received thrut the program did not, in their opinion, at the end a roll-C'all of all senators and rep violate the "personal-attack" provision of the space and credit it merited in newspaper resentatives who have bank directorships reviews by Jack Gould in the Times and Kay the rules of the Federal Communications or other ties with the industry they are called Commission-but many stations doubtless Gardella in the Daily News. But it might have on to consider legislation about. occurred to Mr. Gould to question why this have other advisors. And what is the furor The main burden o! producer-writer about? subject has been so little explored in the Morton Silverstein's theme was the pitiful d.ally press as well as on commercial tele House Banking and Currency Chairman "pennt.es"-as he put it--that trickle down vision. Specifically in the New York Times. Rep. Wright Patman and David Rockefeller to the poor for low-income housing as com With such first-rate investigative reporters of Chase Manhattan set the tone for the pared to the millions that go to the slum as Richard Severo, Earl Caldwell, Homer show, dueling with each other smartly. lords to perpetuate ghetto conditions, as well Biga.rt, Nick Gage, Steven Roberts, Martin "Chase Manhattan has mUlions o! dollars for as to the luxury resorts where a handsome Arnold, and others, the Times should long gambling casinos but only comparative to return is assured on the investment. ago have pursued this subject in depth. But pennies [sic] !or housing !or the poor," He cited impressive statistics, including the program, I expect, was as much a revela charges Rep. Patman. Rockefeller suggests the Savings and Loan Assns., with assets o! tion for Times readers as for the rest of that Patman "was once tumed down f'Cir $170 billion "which are devoting" a fraction the populace. some loan that he tried to make in his local over zero percent" to low-income homes; My unsolicited suggestion to Arthur Ochs Texas bank, and he seems to have taken a the $100 million pledge by 80 participating Sulzberger ;is that he ponder this, and that rather dim view o! bankers ever since." Yet banks to redevelop New York's Bedford he also obtain a copy of a new · Doubleday as "Banks· and the Poor" reveals, there are Stuyvesant section, which somehow dwindled book, "The Pentagon Watchers: Students Re plenty o! other good reasons for one to take to $8 mi111on. port on the National Security State." A team a dim view o! bankers, But, more than that, he portrayed in per of graduate students-going through the For example, the alliance--inadvertent or sonal terms the human suffering caused public record and interviewing at the Pen not--between banks and high-interest loan by bank turndowns when the poor, in des tagon, the State Department, and in "de companies. In Washington, D.C., banks often peration, have to go to loan sharks, charging fense" -industries-have compiled a.n extraor turn down low income applicants who could "usurious rates o! interest," who get their d.inary and frightening amount of infor money from the same banks, that rejected have been charged -only eight percent, forc mation, all of it scrupulously docum~nted, ing them to deal with loan companies across the original applications. little of it made known in anything like this the Maryland state Une, where the maximum Many of the most damaging charges came degree of detall and perspective to Times legal rate for a small loan is 36-percent. Who from Rep. Wright Patman (D-Tex.), chair readers. What does that Times Washington lends the loan companies the money to r·un man of the House Banking and Currency bureau do? their blood-draining business? The bank that Committee, who engaged in _ dialogue-via turned down the low income applicant in the alternating scene~with David Rockefeller, [From the New York Daily News, Nov. 10, first place. president of the Chase Manhattan Bank, 1970] Or there's the Sheriff's sale, dramatically second largest o! the world. filmed by NET, during which the home!? of New York City Comr. o! Consumer Affairs BANKING PRACTICES PROBED ON CHANNEL 13 the poor are sold because of defaulted con Bess Myerson Grant also had some choice (By Kay Gardella) sumer debts. Since banks are large buyers of words of denunciation regarding the "due "Banks and the Poor," the con-troversial installment contracts, they stand as the im course doctrine" that forces buyers to pay one-hour documentary seen on National Ed personal machine behfnd the confiscation of in full for defective merchandise, as hidden ucational Television's Realities program last homes in many cities. A Philadelphia woman cameras recorded typical transactions in night, was shown on all but one of the 180 uses her home as collateral to co-sign an which promises were never kept. ETV stations throughout the country and auto loan !or her brother, who then falls The contrast of promises vs. tieeds, as that one, pardner, was in Texas. It was seen 42658 CONGRESSIONAL RECORD-HOUSE December 19, 1970
here on Cha.nnel 13. The noncommercial out said it violated the personal attack rules WKPC-15 in Louisvllle carried the pro let that elected not to take the program was of the Federal Communications Commission. graan, preceded by a warning that the sub in Lubbock, so one can only hope that money Whether it did or didn't, we do not think ject and treatment was controversial and is no major issue in the Lone StaT State. this segment was developed fully enough to did not necessarHy refiect the viewpoint of But money and banking procedures are have the impact the show intended. It did the station. burning issues with everyone else today, raise the question, but answers are neces The 13-station Kentucky Educational Tel which is what makes the Mort Sllverstein sary, too, when we're walking on such thin evision network was not sclleduled to tele produced hour a serviceable, informative and ground. Examples were certain legislation cast the program untn Wednesday night. challenging documentary that brought to may have been passed because of this would TO DELAY BROADCAST light some questionable practices in our cur have helped. rent banking system. These may be ele Last week, after a closed-circuit preview Among those interviewed on the hour were of "Banks and the Poor" by staff mem·bers, mentary to students of banking, but not to David Rockefeller, who defended the credit the average viewer. members of an advisory committee on pro policy of the banking industry, and New gramming and representatives of both the TOOK NO CHANCES York City Consumer Affairs Commissioner banking industry and the poor, KET's execu How, the question arises, does one make Bess Myerson Grant, who advocates chang tive director, 0. Leonard Press, decided to such an intangible topic dramatically inter ing state laws to eliminate the "holder in delay the telecast until "sometime in Janu esting and exciting? Well, let's first admit due course" doctrine. ary" and untll a companion ·'mini-docu the subject &one always gets a rise out of mentary" can be prepared to: someone but Silverstein took no chances. [From the New York Post, Nov. 10, 1970) "Report whalt is actually being done in He, somehow through the use of hidden ON THE Am Kentucky toward alleviating the very real cameras, interviews and on-location films of (By Bob Williams) problems raised in the original 'Realities' some of our major slum a.reas in New York The government-supported, sponsor-free program. City (Bedford-Stuyvesant) , North Philadel medium of public TV took a promising step "Ask representatives Of the advisory group phia and Washington, D.C., gave a visible forward on Ch. 13 here last night with a doc to comment on the more serious emotive life to the subject matter, even to the point umentary examination of Banks and The distortions in the original production.'' of opening with Ginger Rogers in an old Poor, amid prospects of considerable protests Those who prev.iewed the program seemed Busby Berkeley musical, singing "We're in from the financial community. to agree that it "was guilty of a number of the Money." Morton Silverstein's rundown on the money presentational sins, such as distortion; over Four major aspects of banking were fo business left a viewer with the impression simplification and insumcient research by cused on during the hour. One involved the that the big banks simply don't deal With the the producers," Press said. credit policy of our banks and how 1\re poor, but divert them to loan outfits at out At the same time, there was "near una quently the very poor are forced to do busi rageous interest rates, while financing the nimity that much of the information pre ness with high interest loan associations for loan outfits and cutting down on the basic sented in the program was important, sub help because they've been turned down at sma.ll bookkeeping work. stantially accurate, and that it should ·be their local banks. Another dealt w.ith credit As noted yesterday, the documentary un broadcast," he a.dded. made available for low-income housing and reeled the names of scores of Congressmen Whlie both decisions are sound, the KET redevelopment of slum areas. approach is the better. and Senators with banking interests, who The program used as its example the $100 somehow blithely vote on financial measures Were Channel 15 completely into its new million promised by a group of 80 banks, without regard for con:fiict of interest con quarters and thus able to take on such a including Chase Manhattan, to refurbish siderations. The roll-call, provided by the project as a complementary program, I feel the Bedford-Stuyvesant area. the mortgage Assn. of the Bar of the City of New York, certain it would have chosen a similar route. lending pool, as it developed, has only parted The bright side of the Kentucky picture with $8 million and Chase Manhattan, which rolled too fast probably for viewer identifica tion of the legislators. lies in the fact that neither outlet took the the program said had been most vocal in its easy out of simply ignoring the program. concern for rehabilitation, shelled out a mere The documentary, it seemed here, hit its "Ba.nks and the Poor" the second pro major point in disclosing easy bank (and was $700,000. gram in the new "ReaU.ties" series that saving and loan association) credit to slum sparked controversy and found Channel 15 In addition, the hour pointed out, the pool lords and no credit whatever to poor tenants. won't affect 80% of the families in Bedford and KET emerging with different decisions. The program aimed an eye at the finan "The Triumph Of Christy Brown" on Oct. StuY-vesant, since it is restricted to houses cial community's much-publicized $100 mil of four families or less. 12 contained a short scene in which the lion interest in the restoration of Brooklyn's titled character's sister stripped to the waist Banks' contributions to perpetuating slum Bedford-Stuyvesant ghetto. Chase Manhat conditions was stressed. The program unaware that the adolescent Christy was ta,n's David Rockefeller conceded that only watching. pointed out that they are not making money $700,000 had actually "gone out" toward the available for low-income housing when $169 social project against a $5,000,000 commit In context, the scene proved vital to the billion plUS are fJle total assets of our sav ment by his bank. For local viewers. the Dro story of how the Irish writer overcame cere ings and loan associations, which are re gram didn't su1Hciently investigate the Bed bral palsy. It was tastefully handled. quired by federal charter to provide for the Stuy project. Channel 15 rejected the drama because financing of homes. "Only a fraction over Public TV or NET or whatever the com of it; KET carried it. zero percent has gone toward the financing meroial-free homescreen medium wants to No pSJttern of timidity on the part of one of low income housing," said narrator Philip call itself has merely started to unven the or the other Kentucky noncommercial broad Sterling. money business for everybody to see. Further caster seems to be emerging. ABSENTEE OWNERS investigation would be in order. One Ume .a seemingly bold decision is be ing made by KET, another time by Channel Too, the program said, compounding this 15. GOOd. figure is the charge by a congressional ad hoc [From the Loui£ville Courier-Journal, Public broadcasting is designed to offer subcommittee, headed by Rep. Wright Pat Nov. 10, 1970) viewers a.ltern!lltlves, both to commercial man (D-Texas) , that money is lent instead KET HANDLES TOUGH DECISION WELL fare and within its own community. to slum speculators, and that many slums are perpetuated through the financing of (By James Doussard) absentee owners, or slumlords. When the progrMll topic is "Salad Nicoise" [From the Louisville Times, Nov. 11, 1970] The banks, as the "holder in due course," and involves following Julia Child around a CHANNEL 15 MAY HAVE BEEN HAsTY IN was another target of the program. As any market in Nice and into her kitchen, the CARRYING DOCUMENTARY ON BANKS one who has purchased on time knows, an noncommercial broadcaster offered it by the (By Howard Rosenberg) outfit that you've done business with can Public Broadcasting Service network doesn't fl'he controversy surrounding the NatfonaZ sen your contract to the bank and you then fa.ce much of a decision. Eclu.cattonaZ Televfsion (NET) documentary, are indebted to the bank, not the company. If he carries it, reaction probably will be "Banks and the Poor," raises some funda The problem with this system, of course, 1s so small it passes unnoticed; if he carries mental questions: that your purchased merchandise can be something else, only a loyal few fans wm Is it proper for documentaries to con delivered in faulty or damaged condition squawk. ("French Chef," 8 p .m. Wednesday, tain editorial comm.ent? and you then have no recourse, since the PBS--15 and KET). Should NET programs be backstopped, bank is not responsible. The "carry or nOt-carry" decision becomes when necessary and when possible, by pub tougher when PBS offers more oontroversla.l POSSmLE CONFLICT lic television stations? fare--such as last night's "Banks and the The answer to both questions ls yes. A final aspect of the program, and one Poor," a documentary sufficiently explosive "'Banks and the Poor," written and pro we question, dealt with the possible con that the network put out a special alert to duced by Mort Silverstein, is a searing at filet of interest that might arise with legis member stations warning !llbout the possi tack on the banking industry's dealings with lators who are shareholders or directors of bility of protest. the poor tn housing, personal loans and con banks. Listed were 124 senators and, House As on previous occasions, Kentucky's pub sumer credit. members. The segment has been cha.llenged lic broadcasters arrived at different deci It also puts the crunch on members of by the Texas Bankers Association, which sions. Congress who have direct or indirect associa- December 19, 1970 CONGRESSIONAL RECORD- HOUSE 42659 tions with the banking industry, something of well-intentioned drudgery that has been ting, investigative journalism,'' also discusses Silverstein obviously believes to be a. con the hallmark of Realities this year. There is two situations whdch, while they can happen in other states, cannot occur in Texas: ga.r fiict of interest. something so insidious about those well-in tentioned amoebas: they spread out every n1shment or attachment of wages and forced DELAYED BY KET where in all directions; they pussyfoot sale of a person's home to satisfy a default Part of the NET "Realities" series, "Banks around all sorts of Social Injustices; and, on a .Joan payment. Ch. 8 officials have taken and the Poor" was carried Monday night on worse of all, they bore you to tears. .Q.ote of this in disclaimers which wUl run WKPC-TV, Channel 15. Its showing on the But "Banks and the Poor" turned out to both before and after the show. 18-station Kentucky Educational Television be a ruthless expose on the exploitation of One of ·the controversial issues raised is (KET) network, originally scheduled for to the lower classes by certain savings and loan w-hether or not congressmen should be al night, was postponed until January. associations, and it was out for blood. It was lowed to own bank stocks or serve a.s bank Leonard Press, KET executive director, said not fair; it did not set out to give equal time directors or consulta.n. Avram; ENROLLED Bn..LS SIGNED S. 2193. An act to assure safe and health ful working conditions for working men and SPECIAL ORDERS GRANTED Mr. FRIEDEL, from the Committee on women; lby authorizing enforcement of the By unanimous consent, permission to House Administration, reported that that standards developed under the act; .by assist address the House, following the legis committee had examined and found ing and encouraging the States in their ef lative program and any special orders truly enrolled bills of the House of the forts to assure safe healthful working condi heretofore entered, was granted to: following titles, which were thereupon tions; by providing for research, information, signed by the Speaker: education, ·and training in the field of occu (The following Members