1958 .. CONGRESSIONAL RECORD- HOUSE 1305 purposes; to the Committee on Interior and striking out the termination. date; to the PRIVATE BILLS AND RESOLUTIONS Insular Affairs. Committee on Agriculture. ... By Mr. DURHAM (by request): By Mr. DIXON: Under clause 1 of rule XXII, private H. R. 10348. A bill to amend the · Atomic H. &.10358. A bill t.o amend title V of the bills and resolutions were introduced and Energy Act of 1954, as amended; to the Joint Agricultur.ll-1 Act of. 1949, as .amended, by severally referred a.s follows: Committee on Atomic Energy. · striking out the termination dat.e; to the . ByMr.ENGLE: . Committee on Agriculture. By Mr. McCORMACK: H. R. 10349. A bill to authorize the acqui­ By Mr. HILL: H. R. 10365. A bill for the relief of Sheila sition by exchange of certain properties with­ H. R. 10359. A bill to amend title V of the Anita Daniel (Weekes); to the Committee on in Death Valley National Monument, Calif., Agricultural Act of . 1949, as amended, by the Judiciary. and for other purposes; to the Committee on striking out the termination date; to the By Mr. MAY: Interior and Insular· Affairs. Committee on Agriculture. H. R . 10366. A bill for the relief of Fran­ By Mrs. GRIFFITHS: By Mr. GATHINGS: cisco Slapa and Mrs. Michelina Slapa; to the H. R. 10350. A bill to provide for the con­ H. R. 10360. A bill to amend title V of the Committee on the Judiciary. veyance of a portion of the former naval in­ Agricultural Act of 1949, as amended, by By Mr. BURNS of Hawaii: dustrial facilities at Centerline, Mich., to the striking out the termination date; to the H. R. 10367. A bill for the relief of Jose­ State of Michigan, and for other purposes; Committee on Agriculture. phine Y. Chung; to the Committee on the to the Committee on Government Opera­ By Mr. THOMPSON of Texas: Judiciary. tions. H. R. 10361. A bill to amend title V of the By Mr. HIESTAND~ Agricultural Act of 1949, as amended, by H. R. 10351 A bill to regulate certain in­ striking out the termination date; to the PETITIONS, ETC. ternal affairs of labor organizations by pro­ Committee on Agriculture. Under clause 1 of rule XXII, petitions viding processes and procedures for insuring By Mr. THOMSON of Wyoming: and papers were laid on the Clerk's desk democratic control of such organizations by H. R. 10362. A bill to amend the Fair La­ the rank-and.-file membership thereof; to the bor Standards Act of 1938 to restrict its ap­ and referred as follows: Committee on Education and Labor. plication in the case of employees of organi­ 367. By Mr. REUSS: Petition of Wisconsin By Mr. HOLIFIELD: zations engaged in brand inspecting in con­ County Boards Association that Congress H. R. 10352. A bill to amend the Atomic nection with the livestock industry; to the include in the mileage comprising the Na­ Energy Act of 1954, as amended, to provide Committee on Education and Labor. tional System of Interstate Defense Highways for outer space · development through the H. R. 10363. A bill to amend sections 2 and a north-south route connecting the control peaceful application of atomic energy and 3 of the act of May 19, 1947 (ch. 80, 61 Stat. points of Milwaukee, Wis., and Iron Moun­ for other purposes; to the Joint Committee 102). as amended, relating to the trust funds tain~ Mich., and east-west route connecting on Atomic Energy. of the Shoshone and Arapahoe Tribes, and the control points of Iron Mountain, Mich., By Mr. POFF: for other purposes; to the Committee on In­ and Superior, Wis.; to the Committee on H. R. 10353. A bill to amend section 1461 terior and Insular Affairs. Public Works. of title 18 of the United States Code with By Mr. WESTLAND: 368. Also, petition ot Wisconsin County respect to the mailing of obscene matter, and H. R. 10364. A bill to amend the Internal Boards Association that Congress remove cer­ for other purposes; to the Committee on the Revenue Code of 1954 to provide that an tain limitations concerning the use of force Judiciary. Individual may deduct amounts paid for his account work under Federal aid secondary H. R. 10354. A bill to provide a credit higher education or for the higher educa­ fund regulations·; to the Committee on Pub­ against the Federal income tax for additional tion of any of his dependents; to the Com­ lic Works. State- and local "{;axes imposed for school mittee on Ways and Means. 369. By the SPEAKER: Petition of the purposes; to the Committee on. Ways and By Mr. FULTON: president, Columbia Historical Society, Means. H. Con. Res. 245. Concurrent resolution Washington, D. C., petitioning consideration By Mrs. ROGERS of Massachusetts: to extend greetings of the United States to of their resolution with reference to oppos­ H. R. 10355. A bill to prohibit the charg­ the Government and people of Israel on the ing vigorously the proposed extension and ing of a fee to view telecasts in private occasion of the lOth anniversary of the in­ alteration of the historic east front of the homes; to the Committee on Interstate and dependence of Israel, and for other purposes; United States Capitol Building; to the Com­ Foreign Commerce to the Committee on Foreign Affairs. mittee on Public Works. By Mr. SMITH of Mississippi: By Mr. MILLS: 370. Also, petition of the lieutenant gov­ H. R . .10356. A bill to authorize emergency . H. Con. Res. 246. Concurrent resolution au­ ernor, Hi-Y legislature of the State of Texas, refinancing loans to farm~rs in disaster thorizing the printing of additional copies of Beaumont, Tex., petitioning consideration of ~eas; to the Committee on Agriculture. the compendium of papers collected for th(' their resolution with reference to requesting By Mr. TEAGUE of California: Subcommittee on Foreign Trade Policy of the Congress to change the electoral college H. R. 10357. A bill to amend title V of the the Committee on Ways and Means; to the to the percentage basis; to the Committee on Agricultural Act of 1949, as amended, by Committee on House Administration. the Judiciary.

EXTENSIONS OF REMARKS Depletion Rate for Coal . dent Truman's Materials Policy Commis­ look any means of providing new vigor sion in 1952. The report stipulated that for the industry and new hope for its by 1977 the demand for coal would reach labor force. EXTENSION OF REMARKS a level of more than 800 million tons an­ Whereas the mineable coal reserves in OF nually-a sharp rise over the 490 million this Nation amount to well over a trillion tons produced by America's mines in tons-enough to last . a thousand years HON. ELIZABETH KEE 1957. at present rates of production-facili­ OF WEST VIRGINIA Twenty years is a relatively short time ties for making this fuel available at IN THE HOUSE OF REPRESENTATIVES for an extractive industry to prepare it­ places of consumption must be set up if Wednesday, January 29, 1958 self for an increase in capacity of ap­ the abundant reserves are to be of service proximately 60 percent. The program value to us. When all recoverable re­ Mrs. KEE. Mr. Speaker, I invite your must get under way far in advance of the serVes are taken from a mine, that mine attention to a statement made last week upward trend in coal demand. The is lost forever as a source of fuel supply. before the House Ways and Means Com­ matter of accumulating sufficient capital A closed mine proyides no jobs and pays mittee -bY Mr. Otto Gressens, executive for the undertaking must, of course. pre­ no Federal taxes. To open new mines is vice president of Peabody Coal Co. and cede the necessary investments in prop­ expensive, so coal companies must put chairman of the National Coal Associa­ erty and mining equipment. To continue aside enough money to be able to move to tion tax committee. He urged that the to restrain the industry from under­ new locations when present operations depletion rate for coal be raised from the taking this program could well result in are worked out. present 10 percent to at least 15 percent. a deficiency of fuel resources when they Recognizing that natural resources are · The inadequate depletion rate has for are needed;. more than that, such re- exhaustible, Congress adopted the deple­ ·a long time hampered the coal industry's straint could result in a serious fracture tion allowance principle to provide the expansion program. The first official in the mobilization base. money necessary to develop new prop­ warning that coal would be called upon I feel that Congress would be par­ erties. Coal has had its 10 percent de­ to provide a spectacular increase in the ticularly remiss to neglect the coal in­ pletion rate since 1951, but the replace­ I ation's energy supply came from Presi-:- dustry at this time. We must not over- ment cost at mines has climbed from $3 1306 CONGRESSIONAL RECORD- HOUSE January 29 a ton of annual capacity a decade ago to No. 42 at Palmdale is the last word in useful and valuable citizens which our Na• almost $10 t.oday. This disparity, as efficiency in flight testing and assembling tion numbers. In counting some of the virtues with pointed out by Mr. Gressens in his testi­ jet aircraft. which nature and circumstance has endowed mony last week, is in itself clear evidence Unique in its location close to the great my home State of Wisconsin, I have always that an adjustment is required. Edwards Air Force Base with its vast dry believed my State blessed by the fact that I appeal to this Congress to look lakes, its equipment and scientific experi­ it wa.s one of "the favorite settling places for favorably upon my request for an in­ mental facilities and relative convenience emigrants from Switzerland who came to crease in the depletion rate. I have this to the great airframe and parts factories the United States to seek new homes and day submitted a statement to the chair­ of southern California, it is also conven­ new careers. Today, we can count many thousands of these Wisconsin citizens of man of the Committee on Ways and ient to the extensive scientific centers Swiss descent in the cities of Monroe, New Means setting forth my views in respect like Caltech and others. Adequate com­ Glarus, Madison, Janesville, Kenosha, Eau to this important issue. I trust that a munity facilities and housing at very Claire, Beloit, and Oshkosh. recommendation of this nature will be reasonable costs have been installed to­ forthcoming from that committee in a gether with schools, highway, rail, and very short time. air service. This unique defense installation in the Economic Realities and Administration Antelope Valley constitutes a commend­ able military, industrial, and civic Optimism Unique Antelope Valley achievement in the interest of national security and is a tribute to the farsighted .EXTENSION' OF REMARKS EXTENSION OF REMARKS leaders in all three of these fields who OF OF made it possible. · HON. RI~HARD L. NEUBERGER HON. EDGAR W. HIESTAND OP' OREGON OF CALIFORNIA IN THE SENATE OF THE UNITED STATES IN THE HOUSE OF REPRESENTATIVES One Hundred and Ninety-seventh Anni­ Wednesday, January 29, 1958 Tuesday, March 4, 1958 versary of the Birth of Albert Gallatin Mr. NEUBERGER. Mr. President, on January 27 Mrs. Neuberger had the great Mr. HIESTAND. Mr. Speaker, a privilege of introducing our outstanding unique development in defense spending EXTENSION OF REMARKS OF colleague the senior Senator from Illi­ comes to light in the operation of an Air nois [Mr. DouGLAS] to the members of Force flight testing and production facil­ HON. WILLIAM E. PROXMIRE the National Womens' Democratic Club. ity in California. This project, identified In his address, Economic Realities and as Air Force Plant No. 42, is located at Olo' WISCONSIN IN THE SENATE OF THE UNITED STATES Administration Optimism, the senior Palmdale in Los Angeles County just Senator from Illinois provided an in­ 60 miles north of the city of' Los Angeles Wednesday, January 2~. 1958 sight into QUr Nation's present and in the vast booming Antelope Valley. Mr. PROXMIRE. Mr. President, to­ future economy which I feel will be. of In this unique project the Department day is the 197th anniversary of the birth genuine interest to my fellow Members. of Defense has provided a jet aircraft of that great American statesman of As a member of the Joint Economic center-a bargain from the taxpayers' Swiss origin, Albert Gallatin. I ask Committee and a former professor of point of view. unanimous consent to have printed in economics, the Senator from Illinois is In this unique example of organiza­ the CONGRESSIONAL RECORD a statement uniquely qualified to speak on this vital tional ingenuity, the Department of in his honor. topic. Therefore, Mr. President, I ask Defense has brought together large, There being no objection, the state­ unanimous consent that this significant highly competitive aircraft-manufactur­ ment was ordered to be printed in the address by our senior colleague from ing companies: Convair, Lockheed, North RECORD. as follows: Illinois be printed in the RECORD. American, Northrop and soon Douglas­ There being no objection, the address to make use of flight-testing facilities STATEMENT BY SENATOR PROXMmE New chapters in the story of America are was ordered to be printed in the RECORD, on a joint occupancy basis resulting in as follows: savings of millions of dollars. now being written by our Nation's leading historians, to take into full account the tre­ ECONOMIC REALITIES AND ADMINISTRATION A unique management team: a com­ .mendous contributions to the Nation's tra­ mittee of Defense Department and air­ OPTIMISM dition which came from the hand, the heart, (Address by United States Senator PAUL H. craft company personnel establish op­ and the mind of Swiss-born Albert Gallatin, DouGLAS, Democrat, of Illinois, before the erating procedures for a single installa­ one of the noblest of America's adopted sons, National Women's Democratic Club, Mon­ tion, thus insuring maximum utilization whose birthdate we celebrate again on Jan. day, January 27, 1958) uary 29. of expensive facilities which otherwise Almost precisely 4 years ago, after the might have to be quadrupled. Born in 1761, and bred to the aristocratic tradition of ancient Geneva, Gallatin emi­ administration's statistics showed that the This unique location in the great An­ grated to the United States in his youth to Nation's unemployed had increased by lY:z telope Valley, surrounded by desert and become a deathless champion of the cause of mlllion from November 1953 to January 1954 mountains, conforms to security defense democratic freedom. to a total, including layoffs, of over 3 Y:z mil­ standards and dispersal policies. As State legislator, Congressman, Senator, lion, and that physical production in manu­ Unique weather conditions permit an Treasurer of the United States under Jeffer­ facturing had fallen by 7 points, I ventured average of 360 flying days a year, free son and Madison, and trusted diplomat to to say that we were in an economic reces­ the Court of Great Britain and the Republic sion. Since the term "economic recession" of smog, fog, and overcast. of France, he lived a life of accomplishment means a decline in production and employ­ Uniquely designed for efficiency and almost without parallel in our history. He ment, this seemed to be only a moderate maximum use, Air Force Plant No. 42 at was the author and advocate of policies statement of fact. I wa.s, of course, careful Palmdale is self-contained, complete which enhanced America's educational sys­ to add that we were not then in a depres­ with utilities independent of any munici­ tem, which reformed our tax and budgetary sion, or a severe slump, and I specifically dis­ pal system. policies, which first established America's claimed any prediction that we would fall policy of trade with the friendly nations of into one. I merely said that we should real­ Unique planning, in cooperation with the world. _ ize that we were in a recession; that we local civic leaders, assures safety and To me, the life of Gallatin ha.s always been should be alerted to that fact; and that we favorable community relations. A m1le symbolic of the special virtues of the Swiss should take pains to prevent it !rom turning wide buffer strip surrounds the airport, nation from which he sprung-their energy, into a depression. zoned to permit complementary indus­ intelligence, devotion to justice, to public But mild as this statement was, 1t threw trial development but to exclude high welfare, and to the principles of democratic our Republican friends into a paroxysm of density commercial and residential government. Those were the characteristics anger. Mr. Leonard Hall, the then chair­ that made Albert Gallatin a leading Ameri­ man of the Republican National Committee, buildup. can citizen in the perilous days of the in­ promptly declared that I was a prophet of Unique in its airfield equipment, scien­ fant Republic. And these are the same doom and gloom. Mr. George M. Hum­ tiflcally designed buildings, and runways characteristics which place our present-day phrey became so etlamored of this phrase more than 2 miles long, Air Force Plant Americans of Swiss descent among the most that he used it on almost every occasion. 1958 CONGRESSIONAL .- RECORD- HOUSE 1307 The then Speaker of the House of Repre.;. to the -present trend as a recession. But if But we have just learned from our fiasco with sentatives, Mr. JosEPH MARTIN, went out it is not this. will our Republican friends missiles that this. is not the best way. In ~:m· the dinner circuit to get some free meals kindly tell us the term which would best the long run,. truth catches up with the and partaking or· the abundant fare pro; describe what is and has been going on? Madison Avenue happiness boys even when vided by the Union League Club of Phila­ For me, I know of no better description than they wear the disguise of economists. delphia, identified me -as one of the four that which I gave in 1954, and prior to that After working through the budget figures, horsemen of the Apocalypse who, as the in 1949, as well. _ one finally discovers what the administra­ readers of ·the Book of Revelation will re­ And I would add that it is even more im­ tion is really relying on to obtain a pickup member, were to s_catter hunger, disease, and portant now than it was then to prevent in business. It is by increasing the orders war over the ·world. And so· it went all such a decline from turning into a depres­ for military hardware during the first half through the winter, spring, and summer, sion. For more people would be affected of this year. This is referred to by stating although production fell off by 10 percent. and the human costs would therefore be that "at the turn of the year, the economy But while the hatchetmen and smearers even greater than then. Furthermore, Rus­ was begining to feel the effects of an acceler:.. were busy out front, the high command sia's great gains in the field of missiles and ation of the placement of defense contract was worried, as Robert Donovan has shown propaganda have already produced a great awards, prompted by the need to move for­ in his semiofficial account of the Eisen­ shift amongst our allies in favor of neutral­ ward quickly with the programs essential hower years. The economic generals ad­ ism, and have caused more neutrals to in­ to the strengthening of the Nation's de­ mitted in private what they denounced in cline toward Russia. An appreciable eco­ fenses... From an examination of the budget public. nomic reverse in the United States will figures, it is clear that from July 1956 to And now we are faced with a somewhat further damage our position abroad and this July 1957, the Government ordered and spent similar situation. Despite Mr. George M. at a time when a further loss will be most about a billion dollars a month on military Humphrey's defiant swan song of last sum­ serious. hardware. Then the team of Humphrey and mer, we did not do too well under the Re­ Now I have never believed that we should Wilson, who were more concerned about a publicans. Thus instead of the normal in­ necessarily always allow these slumps to balanced budget than about national se­ crease in physical production per man hour cure themselves. Sometimes they snowball curity, cut this figure in half. George Hum­ of something like 3 percent a year, the rise by setting into play cumulative forces of phrey, in his testimony of last summer, from 1955 to 1956 was only six-tenths of 1 breakdown which progressively decrease em­ preened himself on this fact. Rockets, mis­ percent. For 1957, the rise over 1956 was ployment, purchasing power, production, in­ siles, and aircraft had to bear the burden only 1 7'2 percent or only one-half the normal vestment, all of which create still further un­ of this cut. It is now proposed to step up rate. All this was noted last year by the employment arid still less production, and so such orders for the first 6 months of 1958 by keen eye of Leon Keyserling, but was forth. We cannot treat these movements a billion dollars a month, or to a total of $1.5 ignored by the official soothsayers for the merely in terms of classical mechanics. They billion for each of ·6 months. Then for the administration. France, Great Britain, and are frequently impetuous processes in which year 1958-59, the outlays are to go back to Germany have all, moreover, made much slight initial decreases help to create great the figures of $1.0 billion a month which greater gains than we since 1952. ultimate dtiferences. prevailed before the Humphrey-Wilson cuts. In other words, American industry for And yet the Eisenhower administration In other words, the administration is aim:. the last 2 years was really traveling on a in characteristic fashion ignores all this and ing at a one-shot stimulus concentrated production plateau, failing to make its cus­ looks at the current situation only through on defense .expenditures. The chin out boys tomary progress. rose-colored glasses. In his economic re­ believe they can at once provide for the But in the last 5 months, trouble has port submitted a week ago, the President national defense and ward off a depression broken out very similar to that which oc.;. confidently asserted that this slump will be by spending in the next 6 months what they curred in 1953-54. The physical output of of short duration. He declared that "a con­ improperly cut out during the previous half our factories and mines decreased by 9 siderable adjustment in inventories has year, and that this one act of atonement will points and 6 percent between last August already taken place" (p. IV). Businessmen, wash them clean of sin and. solve all prob­ and December, while the numbers of unem­ for example, are not only planning long­ lems. ployed rose by at least 800,000 to a total of range capital investments, but are carrying It may be that the one-shot stimulus. of 3.4 million. This was the equivalent of 5.2 them out at a high rate. Consumer pur­ increased defense expenditures in the first percent of the working force and if invol­ chases are continuing at a high level. In­ 6 months of 1958 may bring a turn in the untary part time were included, this would terest rates are falling and investment par­ direction of the economic movement. We raise the percentage of unemployment to ticularly by State and local governments will can only hope this will be true. But even well over 6 and probably close to 7 percent. be stimulated. And at Chicago last week·, if this should happen it would be done But this was for December, or a month the President urged his Republican listeners at the expense of a well-balanced economy. ago. Since then, ·as all readers of business to be determinably optimistic and to stick We could expect to see again a very uneven and financial journals and all watchers of their chins out. But when one turns to the prosperity like that which we have exper:.. employment lines know, layoffs and short statistics for the proof of these confident ienced in the 1955-57 period. While we might time have increased. The new automobile assertions, the supporting evidence is most see a temporary return to overall economic dubious. !Between August and December the growth, an increase in the profits of big busi­ models have not really caught on and the much-vaunted liquidation of inventories ness, and speculative gains in the stock mar­ auto industry is closing down plants arid amounted to only $400 million or less than ket, we should also have a continuation of laying off men· for 1 and 2 days a week in one-hal! of 1 percent of the $91.3 billion in the farm depression, a decline in small-busi­ what should he its busy season. Steel is stock during the summer. Instead of in­ ness profits, a further decline in housing down to 56 percent of capacity as compared vestment for plant and equipment holding and slum clearance, an increase in the cost with 97 percent a year ago at this time and up. businesses in November and December ex­ of living and the cost of credit and money, car loadings are 13 percent less now than pected to reduce this amount in the first and a continuation of mergers and other then. A further drop in production and ari quarter of 1958, by a rate of $2 billion less trends toward monopoly and concentration. appreciable increase in unemployment is .than during the last quarter of 1957. Th~ What we should want tO see, therefore, in­ almost certain to be shown when the Jan­ indications are that even this figure is being stead of merely an upturn in the gross figures, uary figures are published. scaled down in practice. And we should not is an across-the-board prosperity which Indeed, according to the highly conserva­ forget that according to the National Indus­ would not benefit the few at the expense tive journal, Business Week, in its issue for trial Conference Board, the authorizations of the many. January 18, another three-quarters of a for new investment by the 1,000 biggest man­ There are several interesting implications million workers have lost their jobs since ufacturing companies were 31 percent less about official Republican policy which are the middle of December, raising the total during even the third quarter of 1957 than implicit in this and other administration number of the unemployed to over 4 mn..: they were during the corresponding quarter moves. Despite all its protests, the admin­ iion, and lest the Republicans explode with of 1956. The Michigan consumers survey istration now believes that an increase in an orgasm of anger over this statement, let has just found that consumers are greatly Government expenditures, even if accom­ them note that it does not come from me reducing their plans_for future major pur­ panied by the risk of a deficit, can have but from a weekly which has always been chases. Facile optimists of the chins-out a stimulating and beneficial effect on the closely identified with them arid whose edi­ school need also to remember that the -economy. What was anathema when ad­ tor and publisher, Elliott V. Bell, is a priz~ lamentable decline in per capita farm in- ·vanced by the New Deal is now quietly protege of Thomas E. Dewey. I shall watch . come which h;:ts gone on for the last 5 years practiced by the current Republican admin­ with interest to see if Mr. Bell is labeled as shows no signs of improving and that failures istration. But apparently the Eisenhower a prophet of gloom and dooin by ·his Re­ by small business are still mounting. It is administration's outlays for armaments and publican friends. most interesting to see how from all this the possibly for roads are the only· respectable - Such are the sober facts. They should be administration extracts the confident belief forms of economic stimulation which they known and faced because we can never solve that purchasing power will be maintained ·believe the Federal Government should·carry any problem as long as those in pow~r deny and investments in'creased. out. Added school construction is being that· it exists. · · · It is not pleasant to recite these facts. It given up. Slum clearance and public hous­ I suppose that it would again _throw the 1s much easier !or the administration to con­ ing is ·to be out back. Interest rates on Republicans into a paroxysm. a.nd the . ~d.: tinue its puplic Pollyannlit attitude and to REA expa:nsion .lines are to be incr.eased and ministration into a · temper tantrum to refer .attack anyone who tries to tell the truth. hence discouraged. The prevention of 1308 CONGRESSIONAL .RECORD ~ -HOUSE January" 29 stream pollution is to be turned back to ou-rs wm produce a much sounder e·conom-y'. ·speci&l · ·purpOse. It; was with- ·this the States. There are to be no new starts on For the Republican philosophy concentrat·es thought that I_prepared a speech on the water projects, although some (although not almost solely on production and pays little subject of business· and ·propaganda, all) are meritorious. · or no attention to consumption. And yet ·which was delivered on January 16, 1958, It is only just to conclude that the admin­ 1f the goods produced cannot be ·sold at istration will not favor capital outlays the prices charged, then we have-shutdowns in· Baltimore, Md-., at' the Frall.kuri Day merely because they will help the people. and widespread unemployment. But if we dinner-of t-he Gra.phie ~Arts Association. To pass muster, these projects must also be build up consuming power and prosperity .I ask unanimous consent, Mr. Presi­ of direct and immediate aid to the· big busi­ through the middle and lower tiers of so­ dent, that this speech be printed in the ness interests of the Nation. ciety, we thereby provide the markets which RECORD. This impression is confirmed by other por­ will keep industry running and will help There being no objection,· the address tions of the budget and by the economic avoid the periodic shutdowns which have was ordered to be printed in the RECORD, program of the President. The administra­ been and are one of the greatest weaknesses tion also proposes to cut greatly the funds in our economy. In helping society as a as follows: available for assistance to the needy, the whole, we help big business itself and indeed BUSINESS AND PROPAGANDA aged, the blind, the severely crippled, and protect it from the consequences of its own (Speech by Senator JOHN MARSHALL BUTLER, the dependent children; it is for lower prices selfishness and shortsightedness. Whereas Republican, of Maryland, before the and less aid for the farmers; it is, as I have the program of our opponents tends to favor Graphic Arts Association, Franklin Day said, for less slum clearance and ·fewer only one class and a narrow one at that, we dinner, Sheraton-Belvedere Hotel,· Balti­ houses for the poor. Wherever there is any are a party of all classes insisting only on more, Md., January 16, 1958) aid being given to the weak and poor, there a program to serve the common good. We meet on the eve of the 252d anni­ the administration's economy ax is sharp I suppose that in the back room the Re­ versary of the birt~ of Benjamin Franklin. and swinging, and I have fancied that I could publicans are readying up a tax program It is fitting that the Graphic Arts Associa­ see there a gleam of joy in their eyes. which they and their allies will try to put tion should commemorate his birthday. But the administration is strangely silent over if conditions get worse. One can al­ Benjamin Franklin was a member of your about the subsidies given to shipb:Uilders ready hear the rumblings of what it will be. profession. As a youth, he was apprenticed and ship operators, and to the big silver It w111 concentrate on tax reduction for the to his brother James, a printer, in Boston. miners, woolgrowers, and beet-sugar growers upper income groups, for corporations and of the West. It has not a word to say about At the age of 26 he was the sole proprietor for the owners of stocks and bonds. An at­ of his own printing establishment. the interest-free_ deposit · in th.e banks of tempt wm be made to sell this to the public Government- money which has frequently on the claim that it will stimulate invest­ His contributions to modern America e,re risen to over $4 billion. It passes over in ment and effort and hence restore prosperity. too numerous to list in a short address. complete silence the unfair tax favors In other words, since the unfair tax pro;.. They include the first public library, the granted to the oil-and-gas industry through visions of the 1954 tax law, the accelerated first fire department, and the founding of the 27¥2 -percent depletion allowance, the depreciation, and the other Republican mea­ the University of Pennsylvania. favors given to the owners of stocks and sures helped to overstimulate the capital Franklin was also one of our earliest bonds, as compared with wages and salaried structure of the country in comparison with scientists. Every child has read the story workers, by not requiring the basic income consuming power or what could be sold at of his experiment drawing electricity from tax to be deducted at the source and by the the prices charged, we are to be given more the clouds with his kite. Although he had dividend credit law of 1954, the abuses in of the same. To cure the dog, he is to be little formal education, it is estimated that the capital gains tax and in a number of given a heavier dose of what ails him. his writings include 30,000 documents. other taxes, all of which give unfair favors It apparently never seems to enter the While Benjamin Franklin engaged in many to specific groups -in the upper income heads of our Republican friends that a wiser successful business pursuits and scientific brackets, which are denied to others. policy would be to balance consuming power endeavors, he still found the t ime to assume In short, where the wealthy and the with producing power and thus provide mar­ the burden of public service. He was twice powerful are getting direct or indirect sub­ kets for the productive capacity which is the Governor of Pennsylvania. He was also sidies from the Government, there the ad­ available. This could be done by one or the first Foreign Service officer of the United ministration either looks the other way or both of two methods: ( 1) Building up the States. The Continental Congress entrusted is their eager defender. consuming power of the people by appro­ him with the task of negotiating a treaty Here, in fact, lies one of the major dif­ priate tax revision concentrated on improv­ of amity and commerce with France. That ferences between the Republican and Demo­ ing the status of the lower and middle in­ was our country's first diplomatic act. cratic Parties. ·Ever since the· days of Hamil­ come groups, by improving the position of It is impossible to evaluate the contribu­ ton, the Republicans and their progenitors, the farmers and by socially necessary public tions of such a genius whose efforts· have the Whigs and Federalists have believed in works such as hospitals, schools, and hous­ contributed so much to the welfare of future U:sing governmental power to help the ing for those who most need it, and (2) generations. · In my opinion, his greatest wealthy_. and the powerful to gain more forcing the monopolies and ·price rings to single contribution was his ~tppeal to the wealth and more power. They have assumed reduce their unit prices in order to bring Thirteen Colonies to adopt the Constitution that this group would put economic resources them within reach of the money incomes of the United States. Although politics had to better use than would the middle and low­ of the people. It is well to be thinking p1arked his entire career, this plea was his er income groups, and that others should only about these issues during the next few weeks only major political speech. When Benja­ share in the drippings which might ooze as we watch with close attention what hap­ min Franklin emerged froin Independence down to them from on high. Andrew Mellon pens to production and employment. Hall after the Constitution had been written, openly proclaimed this in the twenties and In any event, let us look at both the he was asked, "What kind of a government Republican tax policy was then based upon present and the future fearlessly and realis.:. have you given us?" He replied, "A Re­ it. While in recent years the Republican tically without being deluded either by an public, if you can keep it." leadership has not "been quite so blatant, it undue pessimism or a foolish optimism. This is the challenge which now faces us. bas not changed its policy, nor its spots. Sometimes the professional optimists and Our Republic is under attack by forces both Purchasing power, according to them, must the hucksters of sugared rose water get us external and internal. Today we are the only be poured in at the top. The lower into the most trouble. temporary guardians of the American heri­ and middle income - groups must not be tage we wish to bestow to our children and helped directly, but only to the· degree that grandchildren. It is our responsibility to those in the seats of the· mighty believe to give them the opportunity to live under a be prudent and, of course,. then only as republican form of government. largess from ·their hands. In these respects, Business and Propaganda Franklin firmly believed that "Right how­ I see no difference between modern and old ever opposed becomes right at last." Our style Republicanism. The modern team is EXTENSION OF REMARKS citizens are confused by the propaganda coming to look like the blood brother of Mark which has flooded our land for many years. Hanna. OF Your profession has the responsibility to set In contrast with this, the Democratic the record straight. You must assist all of Party from Jefferson to Jackson and from · HON. JOHN MARSHALL BUTLER America in securing a better or renewed un­ Bryan until today has, in the main, followed OF MARYLAND derstanding of the principles underlying our a different philosophy. Th_e Governll}.ent, IN THE SENATE OF THE UNITED STATES political and economic system so· that we have said, should concentrate its efforts Franklin's words . "Right however opposed iri · helping the lower a~d middle income Wednesday, Janua'ry 29, 1958 becomes right at last" will 'in· 'truth be a groups, wage earners, farmers, clerks, sal­ 'Mr. BUTLER. Mr. President, in these reality in 1958;. ··. aried workers, housewives, and small-busi­ days of international, and sometimes Russia's successful ·launching of sputniks ness men . . They are the ones who most need Q..omestic, tensions, .o:Qe frequentlY: h~s has forced a reexamination of many of out h-elp -while the wealthy, because of their po­ ·great difiiculty in. distinguishing propa­ values .· and beliefs. In my judgment the sition, are best able ·to look out for them­ Americah people are ~tm able to outthink selves. ganda from truth., On more than one and tilutproduce- the-Russians-or anyone else. · There Is no question as to which policy occasion, I fear that unprfncipled propa.:. Howeverj this is Iio time for -either compla­ Is more ethical. It is ours. And similarly ganda has been used to accomplish a cency or panic. We must approach our 1958 CONGRESSIONAL RECORD- HOUSE 1309 . ,problems soberly and intell1gently. The according to his ab111ty and gives to each "In every year since 1939, the wear and Russians have demonstrated their abil1ty to according to his needs." Approximately exhaustion recorded-including amounts master modern science; however, they are one-hal! answered in the affirmative. It is not allowed for tax purposes as accelerated not supermen and their temporary lead in shocking that any high-school graduate depreciation for the · years- 1947-52-failed the field of rockets can be reversed with would fail to identify this statement as a to equal that needed for recovery of buying unselfish hard work, sacrifice, and patience. 'Paste tenet of Marxian Communist philoso­ power. The 17-year aggregate deficiency was In terms· of long-range· planning, Rus­ phy. $904 million. The Federal income tax paid, sia's scientific progress presents a bold In far too many cases some of our citizens as a result of treating this deficiency and the challenge to our educators. Many have re_ have formed opinions about the Americ-an accelerated depreciation as income for tax sponded with suggestions to improve cur­ economy and the integrity of its leaders purposes, aggregated $608 million, or 22 per­ ricula and once mote revert to the type of from statements by certain labor bosses and cent of the taxes paid. The $608 million education most of my generation received political demagogues. Let me make it quite for United States Steel and analogous wh.en we were in school. Others are taking clear I know the vast majority of men and amounts for all other companies, big and advantage of this new crisis as another ex­ women constituting organized labor are as little, may be regarded as the hidden taxa­ cuse merely to demand more Government dedicated to the perpetuation of the free­ tion of capital as it turns over through de­ spe~ding. enterprise system as I am. If right however preciation or, alternatively, as a hidden in­ When 1 was in high school, every incen­ opposed is to become right at last, you have crease in the tax rate on true income. From tive was given . the exceptional student to the responsibility to see to it that all of our the latter viewpoint it is highly inequitable, forge ahead of his fellows. My parents reg­ citizens are given an opportunity to know because it results in a higher rate for those ularly received a; report card showing the the facts and to understand the . ultimate industries or companies which require rela­ grades I had attained in the courses which conseq:uences of the poll tical decisions they ~ively heavier investment in longer term constituted a basic education. They were endorse. . facilities than the average for all industry." also apprised of 'my performance in com­ Our military security requires a strong do­ In an effort to obscure these facts, Mr. petition with my classmates. In more re­ mestic economy. We must produce a larger George Meany, president of the AFL-CIO cent years our educational system has been national income in dollars of constant value accused the Department of Commerce of greatly infiuenced by those who profess a be­ so that the increased burdens of defense can understating corporate profits by as much as lief in so-called progressive education. They be borne without reducing the American $3 billion to $4 billion. His charge--and his regard marks and competitive grades as un­ standard of living. . This will require hard all too clear purpose--was based on provi­ democratic. It is little wonder that our col­ work. We cannot afford to continue to gen­ sions in the Revenue Acts of 1950 and 1954 leges and engineering schools have found it erate inflationary pressures. Unions cannot which permit accelerated amortization in an difficult to maintain high professional stand­ force round after round of wage increases attempt to partially meet the infiationary ards under such conditions. which greatly exceed the increase in the impact on the replacement of worn-out fa­ Sputnik has awakened the American peo­ productivity of our economy without jeop­ cilities. This is but another example of ple to the fact that Russian students are ardizing our security. propaganda to confuse the. American public well trained and contrary to Communist Some people forget that tJ:ie compensation in understanding the competitive enter­ tenets are provided with every incentive for of employees is not only income to the em­ prise system. It must be remembered, how­ individual performance. Dr. Barnaby C. ployee, but also a cost to the employer. It ever, that capital equipment in our heavy Keeney, president of Brown University, re­ must be recovered in the price charged the industries has a life span ranging from 20 cently focused attention on the deficiencies consumer or we shall have neither employ­ to 50 years. No change in the tax laws effe.a. in our secondary education. He said not ers nor employees. An examination of the tive after 1950 could alleviate the gross only could the pace of instruction-be accel­ distribution of the increase in the national 'Underdepreciation resulting from the great erated, but the content of the curriculum income through this decade shows that for inflation which took place during the period could be vastly increased. · I shall quote every additional dollar of corporate profits between the start of World War II and 1950. directly from his statement: after taxes, employees receive an additional Our business enterprises have in effect paid "But this cannot be done as long as a silly $40. Furthermore, labor's share of the total a capital levy in addition to an income tax -theory of child· development continues to national income rose from 65 .3 percent in on their earnings since World War II. force the schools to behave as if admission 1947 to 70.3 perce~t in 1956. On the other The antitrust laws were adopted to pre­ of failure were worse for the child than pre- hand, corporate profits after taxes dropped vent any concentration of power which could tense of success. · from 9.3 percent of the national income in restrain the growth and expansion of the "No matter how little Johnny does or how 1947 to only 6.1 percent in 1956. economy through price-fixing agreements. badly he does it, he will be promoted to the If all corporate profits before taxes in 1956 In 1914 when the Clayton Act was adopted, next grade in almost any American school had been paid as additional compensation to labor was granted an exemption from the system. employees, their total income would · have antitrust laws. Yet, labor costs are the prin­ "Another roadblock in the path of educa­ been increased by less than 18 percent. How­ cipal factor in determining the prices of all tional thoroughness is the attitude of many ever, if there were no corporate profits,. the goods and services. For months many labor educators toward the brighter students. In Government would have received $22 billion leaders have criticized manufacturers for many cases, teachers feel it is 'undemocratic' iess from corporate income taxes. With the raising the price of their products at a time to give the gifted youngsters greater oppor­ existing level of Government expenditures, when sales were declining. Yet, in December, tunities by sectioning them in classes ac­ higher personal income and consumer excise with rising unemployment, the leaders of cording to their ability. taxes would have been required. Since in­ organized labor announced their determina­ "In fact, if the ablest students in some come taxes in the upper brackets have al­ tion to press for higher wages, shorter hours, schools today are allowed to move Bt the ready reached· the point of diminishing re­ and expanded fringe benefits in 1958. If pace of the average student they are lucky. turns, most of this increase would of neces­ they impose higher costs on industry during It is far• more likely that they will be re­ sity have been imposed on lower bracket such a period, it strongly suggests the pres­ quired to proceed at the pace of the taxpayers. ence of monopoly power which the American slowest." Corporate profits as presented by the De• people have never tolerated. Children who have never 'Qeen allowed to ,partment of Commerce do not refiect the The Antitrust and Monopoly Subcommittee admit failure a·re lost in a world ·where sci­ fact that depreciation charges in a period of the Judiciary Committee of the United ence . rules. This a ttl tude explains the Na­ of inflation do not provide firms with suf­ States Senate is presently conducting hear­ _tion's frustration over the failure of a single ficient cash to replace wornout equipment ·ings to study so-called administered prices. test-firing of our satellite rocket. purchased befo.re inflationary price increases The term "administered price" implies that Our schools must discharge a further re­ took effect. Hence, most of the r-etained the producers· in an industry have a large sponsib111ty. Every ,high-school graduate earnings of American industry have been measure of discretion in establishing the must have an appreciation of the economic .used to replace wornout facilities rather price of their products. facts of life. Very few Americans would than to expand them. - Let us examine briefiy the principal com­ admit a preference for socialism or commu­ Mr. R. C. Tyson, chairman of the finance ponents of cost for any product. nism in contrest with American free enter­ committee of the United States Steel Corp., Today, wages are administered under col­ .prise. Yet, many citizens do not appreciate in his testimony before the Senate Subcom­ lective-bargaining agreements and in many the role of profits, investment, and competi­ mittee on ~ntitrust and Monopoly provided industries they will continue to rise under tion in the operation of our economic sys­ further confirmation of the fact that de­ long-term contracts rega:rdless of economic tem. This is not hard to understand when preciation charges are not providing suf­ conditions. The prices of purchased ma­ we know that some of our educators are ficient cash to replace industry's wornout terials and services are certainly not ad­ themselves confused about how the Ameri­ facilities. He said: can economic system really functions. Re;. "Few people realize the extent of the de­ ministered by the buyer who 'incorporates cently a questionnaire was submitted to a ficiency in depreciation. United States Steel them in his product. Transportation costs group of high-school seniors by Opinion Re­ has calculated the number of dollars of are controlled by the Interstate Commerce search, an organization skilled in measuring wear and exhaustion that would have been Commission. Even depreciation costs are set public opinion. Among other questions, needed in each year since 1939 to equal in by Government regulations. The Congress, they were asked whether they agreed or dis­ each year's dollars the portion of the buying State legislatures, and city councils establish agreed with this statement: "The fairest power originally expended which was used tax rates. The small net profit of American econoll}ic system is one that takes from each up in the year's production. · · industry· amounting to only 6.1 percent of 1310· CONGRESSIONAL RE-CORD-· HOBSE January ~~9 - t!;l.e.· nationa11ncome suggests that mi'mage-: enterprise system on the economic essen­ cementing sound commercial reiation8 ment has little discretloJ:1. in establishing .its tia1sl'equlred for its growth -and development. with other nations as the· most durable prices. . The role of profits .and Incentives in the ex­ guaranty' of 'international amity and The .subcommittee has :announced its In­ pansion of capitalism must be man widely prosperity. · tention to review the costs or -the three lead• understood. Those who wish i;o substitute ing automobile producers at a joint meeting some other form of economic system for our There is unquestionably a lesson in wlth Walter Reuther. In my opinion, such free enterprise are experts in the art of propa­ Gallatin's · Iif.elong devotim.l ·to foreign­ a procedure would. constitute a ·violation of ganda. rel'ations ·· und . ' t6 f-or~ign commerce; the antitrust laws. .It can serve no useful .Benjamin Fra~klln in hl§ famous Almanac which we may apply with profit to the' pu1·pose as the basic elements of cost are provided an education on the economiC' facts conduct of our natimial .at!airs. today. well known and not subject to administra­ of life for the people of his generation. You In p:Jace of the willful neglect and ob­ tion by any producer. Profits are derived by have but to follow his example. I know has the skill exercised in combining these cost that you will rise to the challenge and that structionism which recently marked factors into a product which merits con­ your profession ln 1958 and the year.s to fol­ the conduct of our foreign relations, we sumer acceptance. low will contribute to a better public under­ .should return to the patient, construc­ Yet, Walter Reuther's latest proposal to standing as he did during the trying days tive, cooperative methods of Gallatiil. A the .automobile manufacturers advocates . when the Thirteen Colonies joined together good plaee to begin to apply new policies that 50 percent of all-profits in excess of 10 to form the -united States of America. would be in rehabilitating the present percent of invested capital before taxes be I know that we can again accept .Ben­ gravely deteriorated commercial .rela­ shared evenly between workers and con­ jamin Franklin~ challenge when he said the 4 tions between the United States and sumers. He alleges that, under such a pro­ Pounding Fathers had ~iven -us 'A ·Republic, Switzerland, the land of Gallatin's birth. cedure, in 1956 GM workers would have if you can .keep it." We .shall keep It. .and When we .have proved that we can re­ received $286 million in additional compen­ we will bestow th.e Am~rlcan heritage tofu­ sation and i;hat consumers of its 'Products . ture generations. pair the blunders and mishaps of our would have "Teceived a rebate of i;he same semiprotectionist poli.cy toward Switzer­ amount. What he 'failed to say, and this is land and Swiss watches, we will be better an important point, was that corporate in­ prepared to tell the balance of the world come taxes for this one firm alone would Albert Gallatin that America is ready to meet the Soviet have been approximately $300 million less. economic offensiv.e on all fronts. with our Obviously, this ls more oi Mr . .Reuther ·•s fullest resources and our utmost good.. special brand of economic hogwash-all of EXTENSION OF REMARKS . will. which 'ls -pointed i;o an eventual destruction OF of the free-enterprise system. His state­ ments are propagan<(a in its most vicious HON. HERMAN P. EBERHARTER form. OF PENNS~LVANIA Fishermen .Should Be Awaraed the Same If Mr. Reuther's scheme were universally adopted, the Government would lose between IN THE HOUSE OF REPRESENTATIVES Consideration as Farmen With Respect $4 billion and $5 billion in .revenue. In­ Wednesday_.. January 29~ 19-58 to Declaration of EstimaWl Income credibly, be must now vision himself as an economic dictator rep1·esenting consumers, Mr. EBERHARTER. Mr. Speaker, Tax stockholders, -work_ers, and citizens aJike­ Albert Gallatin. the Swiss-born Ameri­ in fact he would supplant the Congress ·oi can statesman who wa.s a bright figure the United States ln determining the Gov­ in our Nation's color.ful Revolutionary EXTENSION OF REMARKS ernment's revenue. past, is a favorite adopted son of the · OF _13y a mrange coincidence, this ls the pre­ State of Pennsylvania. cise. formula advocated by Dr. John M. Blair Many Pennsylvanians are · convinced HON. -CECIL· Jt~- KING ln a book: entitled "Seeds of Destruction," a OF~ CA.LIFORNIA !Study tn the functional weakness of -caplta1- that the special qualities of courage·, re­ lsm published in 1938. 'Curiously, Dr. Blair sour--cefulness. intelligence and devotion I~ THE !JOUSE OF REPRESENTATIVJ!'S is today the chief economist 'for the Anti­ to the democratic cause whieh he pos­ Wednesday, January 29, 1Q~8 . trust and Monopoly Subcommittee of the sessed to a high degree, and which clis­ Benat~ Judiciary Committee. tinguishe:d his subsequent career on the Mr. KING. - Mr. S~eaker, fishermen, In recent months I have been increasingly stage of national affairs, were nurtured like farmers, wrest their livelihood from concerned with the fact that this .subcom­ and brought to maturity through his the uncertain elements beyond the con­ mittee has been used as a forum for collec­ ear~y and fruitful intervention in the trol of man. Like thefarmer, the .fisher­ tive bargaining. The Senate never intended affairs of the State of Pennsylvania. man is dependent upon weather condi­ to' establish any subcommittee for this pur­ This is why I am especially pleased to tions which vary . widely and unpre­ pose. The attacks on corporate profits by dictably from year to year. And like the labor leaders and by the staff of this sub­ pay tribute to Albert Gallatin on this committee are propaganda to prepare the January 29. the 197th anniversary of his farmer. the fisherman knows tremendous American people to accept another round of birth, and ,to acknowledge the special variations in yield and a large number inflationary wage increases in 1958. It is debt which the state of Pennsylvania of complete failures in any given period time for all of us to realize that wage in­ owes to his memory. of years. · · creases which exceed increased productivity Some of the fruits of Gallatin's leg­ The Internal Revenue Code today must be included ln the price of the .g,oods takes cognizance of the problems of the produced._ islative labors ln Pennsylvania are ap­ parent in the bicameral legislature f-armer~ It accords ·farmers special If we are to preserve a free America, profits treatment with respect to the filing of must be adequate to .induce new .investment which he fought to place in our State so that the productivity of our worker,s can constitution; in our State system of their declarations of estimated income be increased through better tools and meth­ universal, free suffrage; in our State tax. Thus.. at present.. taxpayers who ods. Attacks on profits .are a disservice to system of free public.educ.ation; in the obtain .at ·1east two-thirds of their esti­ the American economy and the well-being of sound system of finan-cial accountability mated gross income from farming ac­ ali our citizens. · which governs the taxes and disburse­ tivities may defer the declaration and In the years ahead, .it is obvious that the ments of Pennsylrania's government payment of their estimated tax until Federal Government will need the maxi­ even to the present time. -January 15 following the current taxable mum possible tax revenue to finance our year. Taxpayers generally are required .defense program. High. tax revenues ancl As Albert Gallatin progressed from high tax rates are not nece_ssar1Iy synony­ State to national affair_s he carried with to· file such declarations on or before ·mous. The present personal 1ncome tax him .a keen interest in an expanding April 1·5 of the current taxabl~ yeal' and structure 1nc1udes rates far beyond the .system of stable commercial relations make their quarterly payments on or point of . diminishing returns. Such rates with the world, whi~h has always been a h.efore April 1.5~ .June 15, and September were designed to penalize success rather than characteristic of the industrious and 15 of sucll year, and January·15 -of the to ratse revenue. We can no longer afford hard.:.working people of Pennsylvania. ensuing- year." · ,- ..,, '4 - •• ' the luxury of these J)ractices. Our ·· tax struc­ He succeeded in implementing these In . adU.itidn, in . 'lieu or paying the ture must be revised to produce the maxi­ mum revenue with the least possible deter­ valuable ideas through a bro.ad system amO.ubt"'o'f estimatea ·tax ori J·a;imanr 15 -rent to an ever-expanding economy. .of commercial treaties . with. foreign as most ot'he.r taxpayers. farmers· are Your profession bas a great opportunity lands which he created as President Jef­ permitted to defer payment until Febru­ and TeSponsib11ity. You are in a unique po­ ferson's Secretary of Treasury. As Am­ ary 15 if they so desire~ and further they -sition 'to _ further the ~ucation 01 .an of bassaqor to both England .and France, may .file their .final returns in substitu­ our people who already believe in the free- he agaih implemented the princi:t:le cf tion of the payment of estimated tax. ,.,., .

1958 CONGRESSIONAL RECORD- HOUSE 1311 Other taxpayers find this option extends NewsleHer shall our Nation weaken. Naturally, we must only to January 31 for them. · not convey~ patronizing or holier than thou This completely justified exclusion of attitude. So, good for Dulles. It is my hope that he and the President will stand firm farmers from the general rules govern­ EXTENSION OF REMARKs OF against Russian blandishments and wtll ing declarations of estimated .tax orig­ stress our beliefs over and over. We cann.,t inated in the Current Tax Payment Act HON. BRUCE ALGER trust the Communists. They are not Unitf:d of 1943, and takes recognition of the ....._ OF TEXAS States friends. They resp~ct only strength . f act that farming income is more·uncer­ Having broken almost all agreements they've tain and subject to greater ft.uctuation IN THE HOUSE OF REPRESENTATIVES entered, now it will take deeds to deserve than the income of taxpayers generally. Wednesday, January 29, 1958 any further credence on our part. In addition, farmers realize relatively The danger of monopolistic power in the Mr. ALGER. Mr. Speaker, under hands of labor leaders has been c~early dis­ small amounts of income before the final leave to extend my remarks in the REc­ closed in Congressional hearings. Violence months of the year, and accordingly find ORD, I include my newsletter of ·week end- and intimidation, corruption, racketeering, it difficult to make advance payments in ing February i, 1958. - · and · abuse of trust and power have been the early part of the year. proven. So, what now will be done? Possibly The newsletter.follows: . Fishermen are subject to precisely the nothing. Steps to be taken to cure the pres­ same uncertainties and ft.uctuations with VVASHINGTONREPORT ent abuses should include legislation to (1) respect to income and to the same sea­ (By Congressman BRUCE ALGER, Fifth Dis· limit unions' industrywide bargaining to a single employer; (2) abolishing the check­ sonal peaks of income a1;1d exp~nse as trict, Texas) A light legislative week permits a look off (enforced collection of union dues and farmers. Thus, of the . 5,200,000,000 assessments by employer); (3) making pounds of fish caught in 1956, 3,450,000,- ahead. Pay TV hearings are concluded be­ fore our House Interstate and Foreign Com­ unions liable to damages from their own 000 pounds, or 66.4 percent, were caught merce Committee. Two questions confront violence (like everyone else); (4) applying in the months of June through Octo­ us: (1) Has the Federal Communications antitrust laws to unions; (5) setting limits ber. The salmon industry is entirely Commission the jurisdiction by statutory on initiation fees, dues, and assessments. limited to the months of June, July, Au­ authority to permit or ban subscription TV Actually, the problems should be handled at ·gust, and September, and in . Alaska, tests, or must Congress act first? (2) Should the State level where State law enforcement which produces a large part of the an­ home pay TV be permitted or denied the should prevail, including the right-to-work viewing public by law? laws, if the people so chose them by vote. nual crop, the season lasts for only 1 Yet, it has long passed out of State hands month. Specific examples of the sea­ Arguments for pay TV (oversimplified): ( 1) Pay TV will be optional to home viewers into Federal jurisdiction. There is some sonal nature of the commercial fishing and will offer added features not available possibility that a national right-to-work law industry can be found in the case of tuna, now (first-run movies, top sport events, will be advanced. The personal freedom of shrimp, and cod. Thus in the halibut, specialized subjects like opera, education workers must be reestablished. The Presi­ cod, and perch industry of Massachu­ programs like medical operations); (2) Con­ dent's message, on additional legislation to setts, 59 percent of the fish taken are gress (or the FCC as its arm) cannot deny provide greater protection for the rights of individual workers, the public, the manage· taken in the period from June t~rough business enterprises the right to try out their new ideas, or ~eny the public the · ment, and unions covers the needs well. December, with July, August, and Sep­ .Now we shall see what legislation is forth­ tember the peak months. choice; (3) the present study by' the FCC concerns the granting of only test pay TV coming and whether Congress will act. I The menhaden industry accounts for services to learn more about how it would doubt it. Only the people can force it, if '13 percent of its total catch for the work and of public acceptance. they will. months of June, July, August, and Sep­ Arguments against (also oversimplified): The attack on Dallas I have answered on tember, and 65 percent of the shrimp ( 1) Pay TV will siphon off programs now the fioor of the House this week. The RECORD taken are taken in . the period August free--not ad.d new programs-viewers will is now straight and others reminded that attacks can boomerang. through December. be forced to pay for what now is received The fishery resources of the United free; (2) pay TV wm black out free TV, States have been subject to wide fluctua­ since each pay channel or program will mean that much less J;ree TV; (3) any test will be tions in abundance and availability. incomplete by its very nature, hence com­ The Government Has Many Cultural Ex· Waters which yield an abundance in 1 prehensive data will not be obtained; further, year, produce little or nothing in the once started, it will be an accomplished change Programs With Other Nations next, and the amount of a fisherman's fact. There would be no return to free TV. but No Hall in Which To Present income is directly related to the amount Proponents are those companies who have of fish he catches. Predictions of income developed pay systems-Zenith, Telemeter, Them-The Vice President and District are almost impossible for individual fish­ Skiatron, independent TV stations, and others. Opponents include certain citizen of Columbia Federation of Women's ermen and for the industry as a ,whole. groups and the big TV networks who fear Clubi Support New Plan for National Thus, fishermen stand in the same posi­ pay TV will automatically eliminate advertis­ tion as farmers and for that rE'Cl.son ing money which now supports free TV. Cultural Center should be accorded the same considera­ Approximately 35 witnesses, including the tion with respect to declarations of esti­ FCC and network presidents, have appeared EXTENSION OF REMARKS mated income tax. before us. (Overall, the validity of all testi­ OF While the internal-revenue laws of the mony must yet be established.) United States already provide for the Secretary of State Dulles received some HON. FRANK THOMPSON, JR. commendation this week when AL BENTLEY, prevention of hardship by permitting of Michigan, and others stressed the view OF NEW JERSEY the Commissioner of Internal Revenue to held by many Congressmen that the United IN THE HOUSE OF REPRESENTATIVES grant extensions of time without charge States, as Mr. Dulles is insisting, must be Wednesday, January 29, 1958 for interest, nevertheless, few fishermen firm in dealing with Russia. The President's are equipped to negotiate with the In­ letter to Bulganin. also states a firm United Mr. THOMPSON of New Jersey. Mr. ternal Revenue Service for such exten­ States position that acts not words of good Speaker, the Federal Government has sions of time and often find themselves faith are necessary from Russia before a many cultural exchange programs with in difficulty, because they are not aware summit meeting can be considered seriously. other nations, programs authorized by Appeasement or just conversation would be of their rights and are not in a position, most dangerous, yet this course seems to be the Surplus Property Act of 1944, the through lack of education or other rea­ the desire of certain liberals criticizing the United States Information and Educa­ sons, to present' their cause and make Secretary. Further, they criticize Mr. Dulles' tional Exchange Act of 1948, the Mutual a case with the Commissioner. · alleged moralistic preachments to other na­ Security Act of 1954, and the Interna­ It is no answer to the fishermen to tions. Some of us feel we must keep trying tional Cultural Exchange and Trade Fair state that his case is not unique. The to present our moral concepts, our spiritual Participation Act of 1956. precedent provided in the special treat­ motivation, if we are to win world under· In addition, an exchange agreement ment for farmers should be extended to standing and/or respec~ over the material­ was signed on January 27, 1958, to in- istic and atheistic philosophy of communism. fishermen, and to all others as well, Dollar diplomacy cannot do this. It takes crease five-fold the cultural, technical, whose income is highly seasonal and sub:.. more and more preachment of the moral education, and sports exchanges between ject to wide fluctuations in amount. and spiritual bedrock of belief that under­ the United States and the Soviet Union. Where hardship exists, equity should be lies this great Nation, and practicing wha·t President Eisenhower suggested, also, universal. we preach. When this -bedrock weakens, so that it would be a good idea to accept a 1312 CONGRESSIONAL -RECORD- HOUSE January 29 number of Russians for a year of study Capitol Grounds just west of the Senate As the report of the auditorium com­ in this country whether or not the Soviet Office Building for a 115-foot bell tower mission shows, multipurpose civil audi­ accepted American students. The Presi~ memorial to the late Senator Robert 'toriums have been built in 382 American dent's remarks were made after a White­ Taft. This land was donated by the -cities. So far as I have been able to House ceremony marking the lOth anni~ Congress. ·determine none of these civic audi­ versary of the Smith-Mundt Act, under It is my considered belief that the toriums have been financed in whole or which the Voice of America and the Congress cannot do less than this for in part through national fund drives. I United States Information Agency were the National Cultural Center; that it have come somewhat reluctantly to the setup. must, first, provide Government-owned eonclusion that the wholly worthy pro­ .However, as was so cogently shown by land; and, second, give the National Cul­ posal for a national cultural center has Robert W. Dowling, chairman of the tural Center a status in the Federal Gov­ come, in certain quarters, to be con­ board of the Congressionally chartered ernment equal to that 'of the National sidered as the sugar coating for the con­ American National Theater and Acad­ .Gallery of Art which was given to the -vention hall pill which certain Washing­ emy, which acts as agent for the Depart­ American people by Andrew Mellon. The ton business interests have been trying ment of State in some of these exchange National Gallery .is ·a branch of the to get the Congress to swallow for more programs: Smithsonian Institution. If these two than 30 years. In the 1930's a plan When we send abroad an exchange pro­ conditions are met, and provision is made !Similar to that preferred by the Wash­ gram, exchange is a misnomer if we ean't ·for the acceptance of gifts from private ington Board of Trade was defeated in receive something here in return. These sourcesJ I am confident that the money the Congress. There is absolutely no have been making friends for our country. for the National Cultural Center can be reason for believing that the same inter­ But then artists, producers, musicians as.k raised from private sources and that the -ests WoQUld not again mobilize to crush when they can come here. American taxpayer will not have to be this convention hall plan being pushed There is no commercial theater you :can by two of the special interest committees book them into in midseason. Every New taxed to provide this much needed York theater manager hopes to book his _facility. of the Washington 'Board of Trade. house for a whole season. With the excep­ COMPROMISE LEGISLATION DEVELOPED Washington is one o-f the country's tion of the National in Washington, where major cities popu1ationwise, and, has a you might find a couple of weeks in the I have developed a compromise bill to high standard of living, From these and winter, there is no other place to play. New meet the objections voiced in the House -related !acts I think the conclusion is in­ York is practically closed. · iOf Representatives on August 8, 1957. escapable that if Washington wants and You just have to have an adequate house, No one 'Spoke against a National Cultural needs a convention-trade fair-exhibition not only fo._· the theater, but for ballet. opera, Center in that debate. Everyone was for hall then it can obtain one in the very concerts-all the performing arts need it. .a National Cultural Center in the Na­ same way and just as successfully as the AMER'ICAN COUNCIL 'ON EDUCATION SURVEY tion's Capital. The opponents of the site '382 other American cities obtained theirs. In a survey report for the American selected by the District of Columbia As a matter of fact, the Board of Trade Council on Education, submitted on Auditorium Commission insisted they made a study of the matter a few years Ja.nuary 2, 1958, by Dr. Donald J. St-one, were just as dedicated to the concept of ·ago and found that a convention hall 'Such a center as the proponents oQf the dean of the Grad~ate School of Public type of building would bring in $12 mil­ · and Internationai Affairs of the Univer­ .site chosen by the Auditorium Commis­ .lion a year in additional business. Clearly sity of Pittsburgh, and Dr. Michael J. sion. They insisted, however. that "we then, it would and could pay for itself. Flack, ACE staff member, declare that; .can still have the center, and quicker, on Conventions and tourists already bring one of several available Government­ into Washington the vast sum of $300 In one respect at least. the Nation~ owned sites." I agree with them. Capital is an unde~developed community. million -a yeaa-, -according to the figures It lacks adequate institutions to meet the Among the opponents of the Foggy presented yesterday t'O the business out·- needs of tb.e thousands of foreign visitors Bottom site were the Washington Board 1ook conference of the Washington or temporary residents who come here under of Trade and the Federal City Council. 'Board of Trade. I am "Sure that most the auspices of the Federal Government, of Ambassador George A. Garrett, presi­ Washingtonians, businessmen and civic foreign governments, international ·organi­ ,dent of the Federal City Council, wrote zations, foreign or American private insti­ me recently saying: leaders and Mr. Average Citizen, do not tutions, or on their own. Most of. these want any special favors and want .only to foreign visitors are 1Jersons of status in their The auditorium site question provides an­ be treated as the citizens of other Ameri­ own countries. All told, there are each year other instance in which we have disagreed can cities are treated; no more, no less between 1ifteen and twenty thousand of with the position 'taken by an advisory com­ than this. I am delighted to note that them. m.ission. We have, as you know, consistently 1"avored a southwest location over ~ne ln after a period of trial and error sound The visit' of these guests from abroad to .Foggy Bottom for the civic center. plans are under way in Washington to the Nation's Capital involves an opportunity build a national stadium and pay fori~ for the United States to m.ake their sojourn WASHINGTON BOARD OF TRADE WANTS CONVEN- here meaningful anti enJoyable. If each of TION HALL through a bond issue after a periad of these foreign vlsitors is to be vlewed, as he The Washington Board of Trade's years in which less realistic plans were must, as an important person who will co­ -Auditorium Committee, and its coordi­ considered, including having the Federal determine in his own 1:ountry the nature of nating Committee on the Future of Government build . and present it to tomorrow's world, then providing an ade­ Washington, D. C., as a gift. 1: am sure quate introduction to the United States and Washington are much more interested in the Congress would welcome any similar an appreciation o.! its struggle to develop a a convention hall than a national cul­ sound proposal for building a convention free, pro.sperous, and responsible soclety tural center. In a paper prepared by should be of direct interest to the American John W. Thompson, chairman of the hall in WashingtonJ D. c. to serve Wash­ people. · latter committee and president of the ington's business interests. , SUPPORT GROWS FOR COMP.ROMISE .MEASURE Later, this important survey for the Evening Star Broadcasting Co., and pre­ American Council on Education, an or­ sented to the business outlook confer­ I am pleased to say that strong support ganization which speaks_fQr all segments ence of the Washington Board of Trade has developed for my measure and, fur":" of education in our country, recommends ·on January 28, 1958, a preference was therJ that I consider it highly significant the establishment of a. great cultural cen­ expressed for the convention hall plan that not a single national organization in ter as an international meeting place for put forward by the District of Columbia the field of education and the arts has the world in the Nation's Capital, saying .Auditorium C.:>mmission. _turned it down in favor of the convention "the enlarged center should foster the Interestingly enough, the cultural de­ hall plan preferred by the Washington international enlightenment of the . velopment committee of the Washington Board of Trade. Among the many cul­ Washington community. This could be .Board of Trade has been completely tural organizations which have inter­ done by cultural and social programs of silent in the matter but the evidence .ested themselves in my plan for a na­ general interest" which would include would seem to indicate that if the king:.. tional cultural center are the National American and foreign music programs. ·makers in the Board of Trade permitted Federation of Music Clubs, the National :it to express an npinion it would favor Music Council, the American Federation CONGRESS DONATED LAND FOR TAFT MEMORIAL _my compromise bill, H. R. 9848J over the .of Musicians, the Music Educators Na- Mr. Speaker, the Congress in its wis• plan .advanced by the District of Colum­ tional Conference, the Associated Actors dom provided a site on the United States bia Auditorium Collllllission. . and Artists of America: AFI.r-CIO., the 1958 - CONGRESSIONAL .RECORD- HOUSE 1313 National Opera Association: . and the the international board adopted the for­ humanities and the creative arts 1s giving American Guild of Music Artists, AFL­ lowing resolution: the Russians too easy a victory. "That the Four A's endorse the bill of Please count on me for any support that ClO. Representative · FRANK THOMPSON, JR., for -a I am able to give and I am sure that I I include here a few of the many mes­ ·National Cultural Center in Washington, speak not only for myself but for the mem­ sages I have received in support of my -and that the branches of the Four A'-s that bership of the National Music council as plan, a plan which would cost ~he Amer~ h~ve not already done so be requested to wen. ican taxpayer nothing since the entire take similar action." With kindest personal regards. amount would be raised through volun­ This resolution followed the reading of a Yours cordially, tary subscriptions: · letter from me requesting support of the HowARD HANsoN. Four A's for your bill for a n ational cul· OFFICE OJ' THE VICE PRESIDENT, -tural-plan for the Mall area in the Nation's NATIONAL OPERA AsSOCIATION, washington, January 21, 1958. Capital." Oberlin, Ohio, January 2, 1958. The Honorable FRANK THOMPSON, Jr., I am happy our international board has The Honorable FRANK THOMPSON, Jr., House of Representatives, taken this position and I sincerely hope United States House of Repr-esentatives, Washington, D. a. the bill will ba adopted by Congress. Washington, D. C. DEAR CoNGRESSMAN: This is just a note to With best wishes. DEAR CONGRESSMAN THOMPSON! The Na­ thank you for your letter of January 11 and Sincerely, tional Opera Association, assembled in con­ the material you sent relating to your bill HY FAINE, vention at E vanston, Ill.. heartily endorses for a National Cultural Center in Wash- National Executive Secretary. your efforts in behalf of the performing ington, D. C. . arts, and for the establlslunent of a Na­ I appreciate your thoughtfulness 1n keep­ tional Cultural Center on the Mallin Wash­ ing me informed about the status of this STATE OJ' NEW JERSEY, DEPARTMENT OF EDUCATION, ington. measure. As you know, for some time I have As almost all the buildings on the Mall been in favor of the development of such a Trenton, January 9, 1958. Ron. FRANK THOMPSON, Jr., are, in one way or another, cultural centers, Center here in Washington. It would not . we suggest that a more specific name be only provide a much needed facility for the House Office Building, Washingto.n,D. C. used, such as National Theater, and that the residents of this area, but more important building might consist of a large theater DEAR FRANK: I am glad to hear that the it would also serve as a symbol of the inter­ equipped for opera and concerts, and a est of our Nation and Government in the National Music Council has endorsed your bill for a National Cultural Center. I read smaller theater beside it for drama and rich cultural traditions and experience of smaller recitals. In order to tnake such a your speech with great interest and equal building really functional. attention should America. approval. As you know, it echoes many of With best wishes. be given to adequate orchestra pit. rehearsal Sincerely, my own sentiments and I am understandably and storage space, dressing rooms, and fa­ RICHARD NIXON. · prejudiced toward it. cilities for scenery and lighting. as well as Best wishes. architectural excellence. Sincerely yours, We would appreciate having a copy of the {From the Washington Post and Times RoGER H. McDoNOUGH, Director. Herald of January 28, 1958] proposed b111. Our membership is not large but is strategically placed all over the coun- CULTURAL CENTER IS BACKED BY DISTRICT OJ' VAN ARKEL & KAISER, try. If we supply you with a list of names CoLUMBIA FEDERATION oF WoMEN's CLUBS Washington, D. C., December 31, 1957. can copies of the bill be malled out under The executive board of the District of Co­ "The Honorable FRANK THoMPSON, Jr., your franking privilege? lumbia Federation of Women's Clubs unani­ House of Representatives, We are anxious to be of assistance. Please mously approved a .resolution yesterday en­ Washington, D. a. advise us. dorsing a bill introduced by Representative DEAR CONGRESSMAN THOMPSON: President ·. Sincerely and respectfully, FRANK THOMPSON, Jr. (Democrat of New Petrillo, of the American Federation of Mu- DANIEL HARRis, President. · Jersey), to provide for a national cultural . sicians, has asked me to reply to your letter center on the south side of the Mall, directly of December 19 with the assurance that the UNIVERSITY OF PITTSBURGH, behind the National Gallery of .Art. American Federation of Musicians fully en­ GRADUATE SCHOOL OF PUBLIC AND Action on the resolution presented by Mrs. -dorses your proposal and will give it vigorous INTERNATIONAL AFFAIRS, M. McCall Imes, Federation president, was and enthusiastic support. Pittsburgh, Pa., January 13, 1958. taken at the board's monthly meeting at With personal regards and the season's Congressman FRANK THOMPSON, Jr., Hotel 2400. greetings, I am, House Office Building, THOMPSON's bill, introduced on January 9, Cordial1y, Washington, D. a. calls for a creation of a new Federal Com­ HENRY KAISER. DEAR CONGRESSMAN THOMPSON: Thank you mission to plan and administer the cultural for your letter which has been forwarded center, and would, in effect, revive the Dis­ MuSIC EDUCATORS NATIONAL CONFERENCE, from Springfield College. We moved to trict of Columbia. Auditorium Commission Washington, D. a., December 30, 1957. · Pittsburgh last fall. which failed to win Congressional approval The Honorable FRANK THOMPSON, I knew of your efforts to secure support last year of a Foggy Bottom site for the cul· House of Representatives, tor a national cultural center and approved. tural center. ·Washington, D. C. I have now read the materials -you sent DEAR MR. THOMPSON: Thank you for your me with interest and appreciation. I sub­ letter of December 21. We are delighted to scribe enthusiastically both to your objec­ {From the Washington Post and Times tives and the specific arrangements which Herald of January 15, 1958] have it as well as the copy of the letter you · have sent to President McBride. -you present so clearly. RECREATION BOARD BACKS CENTER PLAN . You may be sure we shall be glad to glve If I can be of help a.t any time, please let The District Recreation Board yesterday every support to the important bill for the me know. voted unanimous support for the proposed National Cultural Center on the .Mall here · Yours sincerely, National Capital Center of the Performing in Washington. DoNALD C. SToNE, Dean. Arts. Cordially, The center, which would be located on the V ANETT LAWLER, aouth slde of the Mall, directly behind the E$ecutive Secre.tar11. National Gallery of Arts, as provided in a bill How To Get Adion From Politicians introduced Thursday by Representative THE UNIVERSITY OJ' ROCliESTER, FRANK THOMPSON, JR., Democrat, Of New EASTMAN SCHOOL OF MUSIC, Jersey. EXTENSION OF REMARKS Rochester, N. Y., December 3, 1957. OF Support for THoMPsoN's bill was recom­ The Honorable FRANK THOMPSON, Jr., mended by Recreation Director Milo F. Congress of the United States, HON. GEORGES. McGOVERN Christiansen, who saJ.d "the board and de­ House of Representatives, partment have an important stake ln the de­ House Office Building, OJ' SOUTH DAKOTA velopment of a center for the perform.lng Washington, D. C. IN THE HOUSE OF REPRESENTATIVES arts." DEAR 'MR. THOMPSON: Thank you SO much Wednesday, January 29. 1958 tor your letter o.f November 30. I am most AMERICAN GUILD OF MUSICAL ARTISTS, grateful to you that you are standing up Mr. McGOVERN. Mr. Speaker,! have New York, N. Y., December 10, 1957. firmly against action which would frustrate often wondered how I could advise my Congressman FRANK THOMPSON, Jr., · - the dev-elopment.o!. a _culturaLcenter 1n the constituents to make more effective use House of Representatives; Nation's capital. In my opinion we need of the services of my office. Our col­ Washington, D. C. the"creatlve -arts more ln this country at this DEAR CoNGRESSMAN THoMPSoN.: I thlil.k time than we have ever needed them in our league, FRANK M. COFFIN, of Maine, has that you will hear directly from the As· long hiStory: You -are so Tight in .saying , supplied an answer that I believe will be sociated Actors and Artists of Amel'ica. that that any tendency to.d.ay to downgrade the of interest to the Members of Congress. CIV--83 1314 CONGRESSIONAL RECORD-· HOUSE January 29 Congressman COFFIN directs his sugges-­ small units is one of the major themes in to-goodness. buttonholes. I have not been tion particularly to small-business men, Government today. Yet the absurdity exists backed up against a wall and threatened that Congress will act in a field directly af­ with my political life if I don't vote in a cer­ a group now confronted by serious prob­ fecting small business with relatively few tain way. I have not been lured by the lems with which the Congress is con­ businessmen making their views known. titivating promise of lucre or· a vice-presi­ cerned. Our colleague, a graduate of This is despite the fact that their views are dency of a company 1f I vote for a certain both the Business School and the Law both sought and welcomed. bill. I have reflected that perhaps this is School of Harvard University, has set Perhaps the reason, at rockbottom, for because I am only a freshm::..n, with control forth his views in a well-written article this hands-off attitude toward Government and influence over only one four hundred entitled "How To Get Action From Poli­ by the average small-business leader stems and thirty-fifths of the votes in the House fr~m several assumptions which are today of Representatives. ticians," which appears in the autumn unrealistic. Indeed, they may never have Even though lobbying is not what it was issue of the Harvard Business School been rea.listic. cracked up to be, and even though I am not Bulletin. The article follows: The first idea is that Government (and entirely sure that I have been a victim, I HOW To G~ ACTION FROM POLITICIANS the political personalities, parties, and ways am going to hazard a few remarks on the (By Congressman FRANK M. COFFIN) of thought and action that make up Govern­ subject for businessmen. For small-busi­ ment) does not and should not concern· it­ ness men, that is, because I can't remember Eight months of exposure to the legisla­ self with the problems of · fr.ee and small having met a big one. tive process at the national level have blasted enterprise. The second idea is that the gar­ HOW TO LOBBY-IN THREE LESSONS some shibboleths I have long taken for den variety of businessman should not at­ granted about the relationships between a tempt to be a lobbyist, or to try to persuade What I have to say adds up to a do-it­ businessman and a politician. politicians in Congress·. He feels that this yourself program. In this era of faddisms There is a legendary mutual respect be­ type of activity would be either not quite in solitary artisanship, I don't see why lobby­ tween those citizens who have scaled the respectable, expensive, or futile, or all three. ing can't be included. I have not as yet economic or political he-ights far enough to completed all the materials for the special win an election or meet a payroll. Accord­ GOVERNMENT IS PART OF YOUR JOB kit which wm soon be available at most ing to this school 'of thought: both the poli­ ·. So he continues to tend to his knitth:lg~ drugstores. AS of the moment, it will in­ tician and the businessman look down from finding that his balls of yarn dwindle in size clude some form telegrams, half of which their Olympian heights with mingled respect r.nd multiply in cost. The truth is that will be vehemently for House Resolution - for each other and compassion or contempt government is part of the businessman's and half predicting nationa! disaster if House for all lesser souls. knitting. That is, over and above the con­ Resolution - is enacted; three credit cards If this bond exists, it is not apparent to e-arn which one should have as a citizen in for Washington hotels; appropriate air and me. All too often I have the impression that all levels of politics and government, the rail timetables; a gross of aspirin; and a businessmen feel as Walter Pitkin expressed small-business man, as a segment of our choice of the Koran, Talmud, or Bible. it in the Twilight of the American Mind, economy, has a special obligation. That ob­ If the reader has persevered thus far, he that politicians "are the semifailures in busi­ ligation is to survive. It is increasingly will be rewarded with some more serious ness and the professions; men of mediocre clear that survival today depends not only comments. Lobbying, beneath all the gibes mentality, dubious morals, and magnificent on his own initiative and efforts, but on the and innuendoes, is at one~ a cause and a commonplaceness." 1 Conversely, many in creation of some legislative machinery to result of what Dr. Griffith 2 calls the disper­ politics, are inclined to view businessmen .as help him survive in a world of bigness, and sive state, a form of society and government successes in their vocation but utterly naive, on the elimination of some laws which oper­ produced by specialization in the economic uninformed and unrealistic in matters of ate only to burden him and lessen his chance processes, and to a large degree reflecting the both government and politics. of survival. demands of the many specialized groups These comments do not apply to several In short, government ts tn the field of which now make up our economy. · Lobbying areas where there is a sturdy bridge of un­ small business. To make the venture' fruit- ' is a way in which a specialized group 'pre­ derstanding between the•political leader and ful, small-business spokesmen should not be sents its case to. government. For a tightly the business leader. One such area is -that strangers to government. knit, well organize.d, homogeneou~ group, ef­ where the businessman becomes for a time This objective can be achieved only 1f fective lobbying is far more simple in both a political figure, as in the case of some of . some notions about politicians and how to concept and execution than for the hetero­ the members of the Cabinet. The reverse ex~rt pressure on them are relegated to t~e geneous mass of small-business men, 4 mil­ situation occurs when a Member of Congress' attic with grandma's corset. lion weak. · For this group, not the moguls becomes or remains the head of his · own When I first came to Congress, I was only · but the mites of industry, the first step to business. Then there is a rarefied atmos­ a couple of steps ahead of the average busi­ a more effective presentation of problems, phere of really "big" business, where there nessmen in my distorted views of this proc­ 1. e., lobbying, is a change in attitude toward may well be a high degree of appreciation of ess, more commonly known as the ancient government and politics to which I have the complexities underlying most political institution of lobbying. I say "ancient" be­ just referred. issues. · cause it dates at least as far back as Genesis, ELEVEN RULES OF THE GAME Indeed, one :niight well question whether which records that Joseph performed valu­ From my very limited experience, I venture a. business enterprise in this country has able services in interceding with the Pharoah to suggest these principles which govern ever become dominant in its field without on behalf of his father and brothers. The today's Congressmen in most of their dealings an effective merger of the economic and story of Joseph is not a safe guide, however, with businessmen. I hope that by spelling political modes of thought on the part of since it might not always follow that cast­ them out I can help readers make their con­ its leaders. What I have said about a lack ing one's representative into a pit and there­ tacts with politicians more rewarding and of mutual understanding between politicians after selling him for a paltry 20 pieces of effective, for both parties. and businessmen is directed to the multi­ silver is calculated to induce loyal, persist­ 1. A businessman from home, with a prob­ tude of small entrepreneurs who have the ent, and effective representation at the halls lem, is viewed by the Congressman as an least time or ~nergy to devote to a better of government. opportunity, not a chore. acquaintance with the practices, procedures, BUT WHERE ARE THE LOBBYISTS? 2. Past campaign contributions or the pros­ and personalities of Government. · pect of future contributions are not a deter­ Yet, speaking as a Member of Congress, In any event, I have had to adjust my minant of the effort which the Member will I am deeply concerned over the gulf of thinking about lobbying. When I made my expend for his constituents. ignorance that separates us from the leaders fii·&t "Cook's Tour" of the Capitol after my 3. Political affiliation will have no bearing of the platoons and companies, 1! not the election, I was shown a large, long, ornate on the effort of the Member. He will often brigades and armies of business. Chamber, accoutered with leather seats, take pride in a job weli done for someone We in politics and Government sense that couches, with chandeliers and oil portraits who has worked hard against him. · a very critical period is being faced by the of departed national figures. This was the small- to moderate-sized independent busi­ "Speakers' Lobby." Ah, I thought, here is 4. One factual, thoughtful, reasoned letter will carry more weight than dozens of form nessman. We talk in generalities about the where I shall be buttonholed by cig~r­ effect of tight ·money, costly credit, lack of smoking minions of industry, labor, agricul­ letters or cards. equity capital, high taxes, poor management, ture, -veterans, doctors, lawyers, and Indian 5. No businessman is too small to warrant unfair competition, and monopolistic prac­ chiefs. Here is where I shall have to strug­ the personal attention of his Congressman. tices. But what we know about these prob­ gle for my political chastity. Well, to my If the jobs provided by the particular busi­ lems, with a few notable exceptions, comes dismay, I found out that lobbyists weren't ness are in jeopardy, the Congressman will from practically every source but the busi­ even allowed in the lobby. Only Members place the task of protecting those jobs at the nessman himself. of Congress, their assistants, and the press very top of his agenda. have this privilege. This is a fine kettle of . 6. One precious commodity which the busi­ BUSINESSMEN DON'T SPEAK UP fish. What if lawyers weren't allowed at nessman has, and the Congressman knows More and more, Congress is facing up to court? the fact that the problem of survival of To add to my dis1llusionment, I must con­ 1 Congress, Its Contemporary Role (2d ed.), fess that_not a solitary soul has yet ·thrust Ernest S. Griffith, Director, Legislative Refer­ 1 Page 81, New York, Simon & Schuster, a finger through a buttonhole on my lapel ence Service, Library of Congress (New York 1928. .• • • even the ones that are real honest- · University Press, 1956), p. 121 • 1958 CONGRESSIONAL -RECORD- HOUSE 1315 he has, 1s knowledge -of the facts ·of life as ordinary working hours, he should think of Hartt College of Music, of Hillyer Col­ they exist in his very smal). corner of the tWice before asking him to large whing-dings lege; a regent of the University -Of Hart­ world. These facts the political representa­ in Washington. After all, the Congressman ford; and member of the advisory board tive needs if he 1s to draft sensible leglslation. wa_s at the same hbtel, eating the .same food of the American Child Guidance Foun­ Respect for these facts w111 build the bridge last wee·k, With an~the~ group. · dation. There are innumerable other of understanding so badly needed between A PRACTICAL COURSE IN POLITICS the small-business community and those activities of this outstanding man but whose lawmaking efforts will help or hurt Perhaps what I have said would not reeetve suffice to mention at least some of the that community. even a majority vote in the House of Repre­ sentatives. All I .can say is that it makes awards which he has received. They 7. A law of political thermodynamics op­ sense to me as a constructive approach to a are: 1954 citizen's award, as the Greater erates in most Congressional offices: The necessary ·part· of the businessman's life. Hartford citizen of the year, the 1955 more heat, the less dynamics. Or, to put it There is one byproduct of do-it-yourself Americanism and civic award from the another way, the more organized and intense lobbying which is more important in the Connecticut Valley Council of B'nai pressure brought to bear on a member, the long run than success in solving the immedi­ less effective it is. It may be effective in the E'rith, and recipient of the 1956 George ate problem-: the vastly increased under­ Washington honor medal, from Free­ first instance when it is applied, but the standing of and interest in government as a chances are that the representative will find whole which results from getting in touch doms Foundation at Va1ley Forge. more ways to be undynamic than the pres­ with your Congressman and seeing things Rabbi Feldman bas been the recipi­ sure group will find to bring new pressure. through his eyes. ent of a number of honorary degrees. THE QUESTION IN THE CLOAKROOM What the businessman with a problem Among them are doctor of divinity, If the Congressman feels he is being may be getting into is an intensive seminar Hebrew Union College; doctor of sacred bullied, he can be for the desired legisla­ in government, beginning in frustration and theology, Trinity College; doctor of laws, tion and yet effectively insure its being put ending in wisdom. That kind of experience Hillyer College; and doctor of humani­ into a deep freeze. After all, his influence .is what makes our kind of government work. tiesJ Hartt College of Music. on his colleague does not depend on his Mr. Speaker. it is a rare occasion in­ It public statement to a committee. de- deed that was afford~d the Members of pends on his answer to the question of com­ mittee members in the cloakroom: "What do Rev. Dr. Abraham J. Feldman the House today in having an opportu­ you really think?" nity not only to hear the words of Rabbi A low pressure approach to a Congressman Feldman but to see him as well. I know by a businessman expressing his own problem EXTENSION OF REMARKS I can speak for all the people of Connect­ or point of view in no matter how awkward OF icut that we are very proud that Rabbi a way is almost bound to bring forth an at­ Feldman is a product of our State. titude of friendly-interest and helpfulness HON. EDWIN H. MAY, JR. on the part of the Member of Congress. If OF CONNECTICUT he didn't react that way, he would be quite IN THE HOUSE OF REPRESENTATIVES unique in a body of men and women who have one quality in common: a genuine in- Wednesday, January 29, 1958 The Times Call for Tax Reduction for terest in and responsiveness to people. Mr. MAY. Mr. Speaker, the Members Small Business 8. The kind of lobbying a small-business .of the House of Representatives heard a man can do very effectively need not be ex- very inspiring invocation today. It was pensive. A telephone call may accomplish fully as m_uch as a trip to washington. delivered by one of the most outstanding EXTENSION OF .REMARKS Nothing can be more wasteful of time for clergymen in the State of Connecticut OF thebusinessmanand theRepresentativethan and indeed from the entire Nation, Rev. HON. JOE L. EVINS a personal trip to Washington with no Dr. Abraham J. Feldman, of the Temple thought given to presenting the problem or Beth Israel, of HartfordJ Conn. I am OF TENNESSEE adequate documenation or the necessary pre- happy to say that we of the State of IN THE HOUSE OF REPRESENTATIVES liminary steps. The businessman with a Connecticut are very proud of the great Wednesday, January 29, 1958 problem will help himself if he consents to talk with some member of the congressman•s contribution which Rabbi Feldman has Mr. EVINS. Mr. Speaker, last week, staff. Sooner or later the staff member will made to his community, to his State, it was my privilege to appear before the have to worlt on the details of the problem. and to the Nation, not only in things Ways and Means Committee on behalf He might just as well be recognized as a that pertain to the spirit but in civic, of the majority members of the House competent intermediary at the start. Noth- charitable, and governmental affairs as Small Business Committee, and the com­ 1ng can be more unpropitious than brushing weU. As an example of this, may I cite panion bills H. R. 9957 to H. R. 9963. off the Congressman's staff aids and insisting the fact that he is past president of the on seeing the "boss.'' These bills would modify the tax struc­ 9. There are rather wide areas Within which Synagogue Council of America, past ture to provide incentives for sm-all and a Member of congress can act effectively._ He president of the Central Conference of independent businesses, and partially can expedite the getting of information. American Rabbis, president of the Hart­ equalize the disadvantages small busi­ His efforts can insure that very serious con- ford Rotary Club, member of the Con­ ness suffers in regard to taxation. sideration is given any matter in which he is necticut State Committee for CARE, a Knowing that the concern of the major­ interested. Sometimes he can even bring trustee of the People to People Founda­ ity members of the Small Business Com­ about a reconsideration of a decision, or he tion, and he has been a member of the mittee is shared by many other Mem­ can obtain some delay in carrying out a de- United states mission to Hawaii and to cision. But he cannot, and should not~ be the Far East on behalf of the Depart- bers of this body {)D. both sides of the expected to work miracles, to have a decision ment of Defense~ · aisle, I, under unanimous consent, insert made or unxnade for reasons other than the in the CONGRESSIONAL RECORD a tran­ merits. This is not to say that the unex- I believe that it W-Ould be appropriate script of my statement before the Ways pected never happens, but merely that this to give a resume of some other of the and Means Committee; type of approach is usually going to end in many activities of Rabbi Feldman. Be­ AN INCENTIVE TAX l3n.L FOR SMALL BUSINESS frustration. sides being the editor of the ~ewish 10. A good rule to follow Is: If you have Ledger, he is author of the following (Statement of Hon. JoE L. EviNs, o! Tennes- an Interested Congressman working for you, books: A Companion to the Bible, A see, before the Committee on Ways and don't press your luck. Nothing causes an Ra.bbi and His Early Ministry, The Means, House of Representatives) MC to lose steam so fast as the knowledge Mr. Chairman and members of the com­ that one's constituent is hedging his bet by American Jew, Faith of a Liberal Jew, mittee, I appreciate the opportunity of ap­ trying to enlist the assistance of other Me~- Confirmation, and Reform Judaism­ peari,ng before you on behalf of myself and bers. Generally this information reaches the A Guide. the majority members of the House Select constituent's Member, and, if not hurtful, is Diversification is one of the marks of Committee on Small Business, and to express at best not helpful in advancing his cause. Rabbi Feldman's outstanding contribu- to you our unanimous concern over the plight 11. One final tip 1s to remember that a tion to society. Attesting to his broad of small business and the vi tal necessity of politician,. although more gregarious tban interests, he is a member of the National providing concrete incentives to preserve most people, has limits to both his time and Committee on Immigration and Citizen­ the steadily deteriorating position of small biB energy. He has ln mind a rule which, if ship·, -chaplain, United States Veterans business in our economy. formulated, would run like this: Avoid din- Small business is and always has been the ners 1n Washington, seek them at home. If, _Hospital in Newington, Conn.; chaplain, great reservoir of opportunity and free enter­ therefore, a businessman seeks to carry his Connecticut State Guard with a rank of prise 1n our Nation. As we an know, recent · a,ssociation with his Representatl've beyond · colonel; member of the board of trustees trends and events have tended, however, to 1316 CONGRESSIONAL RECORD- HOUSE January fl9 place limitations on the ability of small heart of the problem of giving small busl- personal, stockholders be given the option business to grow and even to survive, and ness the incentive to grow, and thereby im- of being taxed as if they were partnerships. have put small business at a. severe dis­ proving the climate of opportunity in our It is our view that this option should be advantage as compared with larger business country. Briefly and in general terms we limited to small corporations whose income entities. propose the following-incidentally not in is derived principally from active trade or Recently the House Small Business Com­ the same order as they appear in the bill: production and should not be extended to mittee held public hearings on the prob­ First, one of our proposals is that the taxes personal holding companies. We believe the lems of small-business financing. The imposed on business corporations be modi- possibility of its misuse should be guarded witnesses included a.n impressive array of fied by reducing the tax rate in the lowest against, and accordingly we make a number high policymaking Government officials, in­ bracket--on incomes up to $25,000-from 30 of qualifications in the bill to guard against cluding the Secretary of the Treasury and percent to 20 percent. such possibilities. the Chairman of the Federal Reserve Board, I am sure the committee is aware that, OUr fourth recommendation is that the as well as prominent financial experts in unless Congress takes action before July 1, taxpayer be given the option of paying an private life. They were almost unanimous the present rate of 30 percent will be re- estate tax in several annual installments­ in the statement that one of the most duced to 25 P.ercent. Actually, therefore, our but not more than 10-where the estate con­ serious problems of small-business financing proposal would involve an effective change of sists largely of investments in closely held is that of the tax burden on the very small 5 t i ts business concerns. All of us can recall in percen age po n · our own home localities instances where the concerns. This recommendation it; exactly the same Throughout the period since the first ses­ as the one made by the President's Cabinet need for paying estate taxes has required sion of the 85th Congress adjourned, the Committee on Small Business in its report the distress sale of a business or its assets, . or changes in ownership-often sale to. a. Select Committee on Small Business of the of August 1956 and supported by the Presi- chain or a larger business. In some in­ United States Senate has held extensive dent early last year. It is true that the hearings at various locations across the President later in the year reversed his posi- stances businesses on which communities country about the tax problems of small tion but, in view of the change in economic were vitally dependent have had to be closed business. It heard numerous witnesses. or broken up or moved. This section of our Those witnesses confirmed the points made outlook since that time. we may be permitted bill is intended to remove some of the haz- to hope that this year he will return to his ard to small business and to the continuity by the witnesses who appeared before the 1 House Small Business Committee. They are original position. of its ownership that present laws present. in agreement that one of the principal prob­ The committee will appreciate the diffi· Finally, we recommend that in the case lems faced by small business today is the culty of estimating the loss of revenue that of any person engaged in a. trade or bust­ oppress!ve tax burden on the very small might result from changes in tax rates. If ness, there shall be allowed as a deduction concern. we use the present revenue from this source for the taxable year an amount equal to All these hearings and studies show that as the standard, an informed guess would the additional investment in the amount of small business has suffered during the past be that the loss might be as high as $400 $5,000 or 20 percent of the net income of few years because it is severely handicapped million. However, I have already pointed such trade or business for the taxable year, in obtaining capital for replacement, out that under present law there would be whichever is the greater: Provided, however, modernization, and for expansion. Big a. reduction in the coming year from 30 to that the total amount of any such deduction 25 percent in the tax rate in this bracket. shall not exceed $30,000 for any taxable business is in a far more advantageous situa­ If we take account of this, the loss under year. tion in regard both to the use of its own profits for expansion and in access to capital our proposal against the loss that would The purpose of this plow-back provision is through flotation of stocks and borrow­ ensue if presently scheduled reduction ac- obvious. It would give all business, but ing on long terms. Moreover, in the past tually goes into effect would not be greater particularly small business, a much needed few years, big business has received very con­ than about $200 million. However, in our stimulant to growth. Some such stimulant siderable tax relief through the repeal of view, it is by no means certain that there must be applied if we are going to preserve the excess profits tax and the use of rapid would be any loss at all. I shall have occa- . the position of small business. We all know tax amortization. This relief made avail­ sian to speak on this point a little later. that circumstances today favor the big ele- able to larger industries billions of dollars Our second recommendation is that busi- ments of business. I have noted some of for financing part of the tremendous growth nesses be given the right to utilize, for pur- them and others who have testified have also chases of used property not exceeding $50,000 pointed this out. We cannot hope to cor­ they llave experienced during the last few in any one year, the formulas of accelerated rect all the factors which favor the big and years. depreciation that were made available to discriminate against the small; but we can On the other hand, small business. has not purchasers of new. property by the Internal make a. start, and in our view, this would had the benefit of such tax reductions and Revenue Code of 1954. present the best practical point for such a. relatively little relief through rapid amorti­ This proposal would enable small business start. . zation. On the contrary, small business is · to benefit from rapid tax amortization on .a As I have said, there is wide and bi- still being taxed at just about the same rate far more realistic basis and on more equal partisan agreement on the desirability of as it was during the war. terms with big business. I am sure that legislation along the lines proposed by the Therefore, small business has not been most of you are aware that--particularly majority members. The only criticism of­ able, to the same extent as big business, where expensive equipment is involved- fered is that in view of the present defense · to use its earnings for expansion and has small business is far more likely to purchase emergency we cannot afford the loss of rev­ been far more dependent on loans as a. secondhand than brandnew equipment. enue. And I want to direct my remarks par­ source of capital. Unfortunately, as we all Such used machinery and equipment is often ticularly on this point. know, in the past few years it has been con­ just as good for the purpose as brandnew I have already pointed out that laws siderably more difficult for small business and in any case is frequently the only kind . which will go into effect on July 1, un­ to obtain loans on ·favorable terms--par­ small business can afford. Present law, how- less modified by Congress, provide for re­ ticularly for expansion. ever, does not permit rapid amortization of ductions in the corporate tax structure. There has been wide bipartisan agreement investment in such machinery. Thus, small These provide not only reductions in the for several years that we must have revi­ business is put in a very unfair position in lowest brackets but some in the higher sion of our tax laws to equalize the oppor­ respect to the tax laws. Therefore, in this brackets. If the Congress saw fit to give re­ tunities of !'~mall and independent business. respect small business is between the ham- lief in the lowest bracket where it is most It will be recalled that the President ap­ mer and the anvil--on the one hand it finds vitally needed, but maintained present rates pointed a special Cabinet committee some it more difficult than big business to find . on higher brackets, there would be no actual 18 months ago to study this matter and capital for growth and expansion; on the loss of revenue from a reduction of the present recommendations. It will be re­ . other hand, having scratched it up some- normal tax rates from 30 percent because it called further that a year ago the President where and invested it in the best equipment appears that there would be more revenue presented the recommendations of the Cabi­ it can afford, it receives far less favored than would be available in the coming year net committee to the Congress and added treatment from our tax laws than big busi- 1f the. present tax laws remain in effect. bis personal endorsement and urged action. ness. I am told that through the relief in In the second place, we are making these There comes a. time when we must stop taxes obtained by rapid amortization, those recommendations not to relieve people of ' talking and start doing. The matter is far buying new equipment are able to finance a. taxes and our Government of revenue, but more urgent today than a. year ago because good portion of. the investment out of their . because we firmly believe that these changes of the increased peril small business faces tax savings; on the other hand, small busi- .- would stimulate economic growth. You as a t·esult of the less favorable economic nesses buying used equipment receive no cannot collect taxes unless there are earn­ outlook. The rate of banltruptcies and busi­ such incentive toward new investment in ings to tax. A farmer who keeps taking all ness failures is increasing alarmingly - and equipment and facilities. We are confident the eggs the chickens lay and who does not many small businesses need immediate help that providing such an incentive on equal leave them some to hatch into chicks, w111 if they are to survive at all. terms with their larger business brothers soon find himself without any hens to lay The legislation proposed by the majority would be far more important in stimulating eggs for him to take. It takes no gazing members of the Small Business Committee the growth of small business than might into crystal balls to see that unless some follows the recommendations of the Cabinet appear offhand. · encouragement is given to small business, committee in four of its five parts. In addi­ OUr third recommendation ts that cor- its· earnings will fall rapidly and in conse­ tion, we propose a. provision aimed at the porations with say, 10 or fewer individual, quence there will be less to levy a tax on. 1958 -· CONGRESSIONAL RECORD- HOUSE 1317 On the other hand, if we give small business it is illuminating to look back upon the cession. Why don't we call it a Reuther the means to prosper and to grow, Its earn­ following headlines which appeared in recession? ings w1U increase and we will receive more the New York Times in 1954: in tax revenue even 1f the rates are lower. I Actually, t don't think Reuther will am firmly convinced that within a short January 26: "Harriman Says Admin· get away with it. Nor will the Democrats, time, following the enactment of this pro­ istration Has Brought Recession." if the public understands that these posed legislation, the earnings of small busi­ February 7: "Mayor Wagner Links forces are working against the housewife ness, and big business too--will rise sharply Recession to.Republicans." . and the worker. and produce a higher return in taxes. February 8: "Various Democratic Recently we have had some encourag­ In the third place, small business has al­ Antidepression Measures Offered." · ing testimony before the Joint Economic ready made more than its proportionate share of sacrifice for the continued emer­ February 15: "Senator KENNEDY De· Committee: gency this Nation has faced for the past 15 fends Democratic Right To Warn of De· First. Inventories of stores and fac· years. It seems to me that It would be sim­ pr~ssion." tories are now down to or below normal. ple justice at this time, when small business February 23: "Democratic National 'They had been reduced by restricted itself is facing a severe emergency, to shift Committee Chairman Mitchell Sees Re· ordering, which caused some unemploy· some of the burden to others, more able to publican Failure To Act Against Reces· ment. Now business is ordering and peo· make the sacrifice. sion as Main November Election Is· pie are being called back to jobs. Finally, let us not forget that one of the most important things we are trying to de­ sue." Sec-ond. Consumer sales in the closing fend in this present emergency is the oppor­ March 30: "Dr. Keyserling Warns on Christmas month of 1957 showed an in· tunity which this land has always offered and Downtrend; Urges Action." crease over 1956 which also helped to which we trust lt will always continue to April 16: "Representative RoosEVELT lower those inventories, but is of itself an offer. Small business, I repeat, is the place Offers Antirecession Bill." encouraging factor. where opportunity and free enterprise start April 25: "CIO President Reuther Third. The building industry contin. flowing. If in a nearsighted overconcen­ Calls Situation Serious." ues at a high rate. Plant expansion tration on our military defenses we permit started 12 to 18 months ago is not yet this cllmate of opportunity to wither ·away, May 8: "Reuther Urges Four-Way Ac­ we will have managed to do ourselves far tion; Other Major Unions Demand complete and will continue for many more damage than all the effort of our Emergency Federal Spending, Other months to come. enemies. Steps To Maintain Economy." Fourth. Research and development I repeat, in conclusion, speaking for my­ May 15: "Representative ROOSEVELT funds appropriated by private industry self and the majority of my colleagues on Says Republicans Have Started Nation are larger than ever. Frequently re· the Small Business Committee, that If we on Road to Depression as in 1932.'' search develops the need for further believe in small business-if we believe in August 5: "Commerce Department plant expansion, resulting in more doing our best to maintain our system of building. . enterprise and, opportunity, it is time we Finds Summer Leveling and Fall Upturn took appropriate action to encourage and as Predicted by Government Experts.'' . Fifth. The home building industry stimulate it. The modifications we propose August 13: "Eisenhower Reports Con· continues at a very high level, below are in our view, the very minimum that can ditions at Their Best; Minor Slide Past." 1956 but h~gher than any other year. be done-and should be done-in this September 12: "Economists Feel Sixth. Money is easy. The Federal direction. Many of us think this is by no Eisenhower Administration Aided Sta­ Reserve Board last summer started re· means enough and I am sure all of us have bility and Confidence." versing its influence of restraining · in· ideas on additional things which can be done. But we have subordinated our own When coerced and unearned wage flation, and each successive move has ideas and joined together in these proposals increases are the order of the day, em· now had its result. Confidence is in the hope that we can unite in making a ployers simply have to increase the price returning, start on this vital task of keeping this a of their goods to stay in business. This Seventh. The Federal Housing Ad· land of opportunity and we commend them is particularly true with such large ministration reports more applications to your attention in this light. I thank you. groups as steel, aluminum, coal, and of for loans this year as compared with the course, automobiles. In most of these same period a year ago in some local­ lines the payroll cost is more than 50 ities double or triple. ' percent of the total cost of the product­ Eighth. Federal spending is proceed· Reuther Recession-or Democrat sometimes as high as 90 percent-and ing in large amounts. Contracts have Depression-Which 1 when the payroll cost is raised substan· been authorized and are being pushed. tially, the only place the employer can They exceed previous government, mili. EXTENSION OF REMARKS get the dollars to pay his workers is by tary and nonmilitary commitments by increasing the price of his goods. His more than $5 billion. True, this does not OF alternative is failure, shutdown and loss produce permanent prosperity. It is HON. EDGAR W. HIESTAND of all jobs to his employees. pump priming, but it will get us over the OF CALIFORNIA As this spiral proceeds, there comes a present lull very shortly. IN THE HOUSE OF REPRESENTATIVES time when the employer and the em­ This country is fundamentally sound. ployee have together partially priced We have a great future. Many indus· Wednesday, January 29, 1958 themselves out of the market. That is, trialists are simply utilizing the lull to Mr. HIESTAND. Mr. Speaker, a sales begin to fall because people do not consolidate their positions and prepare Reuther recession is what we ought to have enough money to pay the price for for large further expansion, which they call the present slump in business· and the products. At least, they buy less of all see coming. rise in unemployment. them. That forces a cutback on payrolls, We have much for which to be grate. But in view of the current gloom and which means less people, rather than less ful. The Democrats are screaming about doom chorus of the Democrats, it is pos­ :wages per person. Employers won't and high unemployment. Let us scream sible that the Reuther recession may be can't cut wage scales, but if they have about high employment. More than 70 pushed into a Democrat depression un· less volume, they must hire fewer people million people are gainfully employed at less Americans shrug off the pessimism to produce the goods. higher rates than ever before in the and read the favorable signs which are In other · words Walter Reuther, in· history of the country. That is a greater there if we want to see them. stead of getting a total of more money number than at any time in our own The present recession may be laid at into the hands of the workers to spend­ history, except for a few months in 1957. the doorstep of Walter Reuther more and increase consumption-actually gets The achievement of the Republican ad· than any single individual in the United less money into the hands of the worker .ministration has been tremendous. States. Recessions are simply reactions and cuts down volume, thus cutting back Surely we have a sound basis for dis· from unbridled booms and inflation. the number of jobs. cussing the achievement of peace, pros· Rounds of wage and price increases, for If Reuther forces his next round of perity and progress. which Reuther takes the blam.e, swing wage increases on the automobile in· The two danger spots are the "gloom into a spiral and force inflation upon-us. dustry, it will force another price hike and doom screamers" of the Democratic With Democrats sounding off at every and result this time in less volume, less Party's left wing, and the demands of opportunity, for political purposes, about jobs, increasing unemployment, less con· Public Enemy No. 1, Walter Reuther, of the omnibus condition of the economy, sumer purchasing· power, and more re· the automotive industry. 1318 CONGRESSIONAL RECORD- HOUSH January fZ9

If we· can oombat· · thes~ two things. during the eom.tng year, and ·every year until have beCome preoecupted. with olll" own se­ we can pull our country out of the we meet it squarely, is the deplorable short­ curity, our own contentment, our own lives. age of public-school classrooms in this coun­ Even when we open our doors to those Reuther recession and avoid a Democrat try. How can we match the scientific and fleeing from Budapest or Alexandria., even depression. technical output of the Russians, how can when we contribute to those organizations ------our teachers be expected to produce the and programs which seek new homes for the Einsteins and the Fermis and the Comptons· oppressed and the homeless, we are thinking Senator Kennedy Delineates Legislative of the future, when nearly 1 ·million boys too often in terms of charity instead of hu­ and girls are deprived by· classroom shortage manity, in terms of propaganda advantages lsmes of full-time schoollng because of inadequate abroad, toleration instead of equal rights. classrooms, when millions more are held We have though in terms of what a great EXTENSION OF REMARKS back in unwieldy classes of 40 or more? And Massachusetts poet, John Boyle OJReilly, OF how can a democracy endure-how can it once called "organized charity. scrimped and successfully operate-unless every child 1s iced, in the name of a cautious statistical HON. ABRAHAM J. MULTER given a good education to enable it to set Christ." the policies for the country? I am hopeful To this very day, myths persist concerning. OF NEW "::ORK that in the next Congress we will tackle mttional origins and racial superiority, con­ IN THE HOUSE OF REPRESENTATIV]l:S this problem and do something about it. cerning America's capacity to absorb new Wednesday. January 29, 1958 Despite the existence of the Fair Labor immigrants and the immigrant's capacity to Standards Act, it is a shocking fact that mil­ adjust. Our immigration laws have de-· Mr. MULTER. Mr. Speaker, the Sen· ilons upon mllllons of workers in this coun­ valved into such a tangled mess than no­ ator from Massachusetts, JoHN F. KEN· try have no Federal protection against sub­ body quite knows what they are. The NEDY, in an address to the American Jew­ standard wages. And they are the very ones subject bas become a matter of· partisan who need it most-those whose wages are politics and personal disputes; .and a joint ish Congress on November 17, 1957, low and whose bargaining power is weak: committee on immigration and nationality pointed out the great issues which call handicapped workers, women, Negroes, and policy established under the McCarran Act for action bY this Congress. The follow· immigrants. has not been effective. ing article, based upon this address, ap­ It is a disturbing fact that chronic areas of Our immigration policy is as much ln need peared in the December 9, 1957, issue of substantial labor surplus, high unemploy­ of a new look or agonizing reappraisal as our Congress Weekly: ment and economic stagnation have no co­ military or foreign policies. Such ·a reexami­ ordinated, effective Federal machinery to nation may be possible through a high level AGE~A FOR LEGISLATIVE ACTION help the businessmen and workers in some Hoover Commission type study, similar to (JOHN F. KENNEDY) areas to snap out of their slump and prevent that provided in a bill I introduced for that There are those today who say there are no it from spreading. It is difficult to remem­ purpose in the last Congress. Or it may be great issues, no real differences between ber in these prosperous times that the aver.:: possible through a comprehensive reexami­ American political parties, no problems that age worker laid off in industry today receives nation of the law by the Congress itself. In burn as fiercely as those that captured the an unemployment benefit.which is only one­ any event. whichever approach is used, it attention of all the Nation in the thirties third of his paycheck~ drop in his pur­ seems to me that we ought to be in agree­ and during the war. This is said to be par..: chasing power is felt all over his commu­ ment now on the basic principles underlying ticularly true in the area of domestic legisla­ nity-but as yet this nationwide problem has any new study and new law. tion. All the great battles born in the dark never been attacked in the most feasible and We must recognize that we have come tO days of depression have been won; the. cry successful way through nationwide stand­ the point in our consideration of immigra­ for economic and social justice is no longer ards for the amount and duration of tion policy where we must cast off the out­ :heard and is no longer necessary, it is said. benefits, worn concepts inherited from previous gen.. And this, I am afraid, may well be tbe pre..: Still other problem areas will demand our era tions and start afresh, postulating for vailing opinion in this age of credit-inflated attention-increasing democracy in labor ourselves new principles responsive to the prosperity, falsely based complacency, and unions and curbing selfish racketeers, needs of our time as we are given to see and di-u·g-induced tranqUility, where personality strengthening social security, requiring full understand them. Rather than tinker with and party labels appear to mean more at the disclosure of pension and welfare plans, pro~ a formula which is based upon outmoded polls than national issues and leadership. viding decent housing for low-income fami­ statistical data. and disprove philosophic But the truth of the matter is that our needs lies, urban renewal for our blighted cities, foundations, we must set out to reconstruct are· great and our agenda is long-that an low-interest loans for middle-income hous­ a policy and law which conforms to our accumulation of problems too long postponed ing, protection for natural gas consumers, ideals of justice and civic morality, and rec­ or denied cry out for our attention in Wash­ eventually low-cost atomic power for our ognizes modern techniques of social control ington in the next session of Congress. homes and factories, additional restraints over economic forces which make the wild Perhaps the most pressing problem con­ on trusts and monopolies, and new forms of and frightened cries .of today's neo-Mathu­ fronting us ln. this area o! social and eco­ assistance to our Nation's small-business sians ring empty. No longer can the intelli­ nomic legislation is that posed by the liealth men. gent man of the 20th century accept absolute needs of our older citizens-those who are, We recognize these problems and we ·can limitations on the ability of an economy to 1n the words of the songwriter, "too old to only conclude. therefore, that something is absorb additional immigrants and provide work and too young to die.'' Th.e evidence wrong with the vision of those who say that them with the physical necessities of life. 1s clear that these older people are sick and there are no longer any great social. and eco­ We now understand that a dynamic, healthy, disabled more often, for a longer period of nomic issues. I repeat: Our needs are great and expanding economy requires manpower time, with less money to buy medical care and our agenda .is long. Our task now is to and depends for its growth upon increased and fewer opportunities to take out health shape a responsible, progressive program, demand. Aggressive and imaginative appli­ insurance, than any other group in the coun­ with deeds to match our words. cation of the skills we have learned are the try. The fast-growing health-insurance On one subject I am convinced Congres­ 20th century answer to those who would plans ·of this country. which have taken sional action is long overdue; and that is confine us in the long slnce disciedited amazing strides in the past decade in offer­ the subject of immigration. For 5 years vie theories of bygone days. ing medical care at a reasonable cost to a have talked .about immigration and natural­ This is not to say that a new American large share of our population, too often ex­ ization legislation, about the injustices of immigration . policy would return to the clude !rom th.eir membership those over 65- the McCarran Act and the inadequacies of open-ended standards that characterized our or charge them extra-premium rates-or are our various temporary refugee programs. policy up untU the end of World War I, understandably unable to meet their special This last year I was gratified at our modest which was oriented largely toward the re­ needs of chronic illness and long-term dis­ success in amending these laws to admit quirements of a mushrooming economy and ability in a program that is geared to the some sixty to seventy thousand immigrants, a rapid settlement of vast stretches of un­ health needs of the general population and to eliminate the mortgaging of quotas, to populated western lands. I believe that our necessarily llmited in the amount and kind barry over unused refugee relief act quotas, own national interest and, indeed, the inter­ of serVices provided. As the spectacular rise and to make them available for refugees ests of other nations who might send immi­ -in life expectancy increases to vast propor- from the Middle East, Hungary, and else­ grants to us Indicate that we should have a -tions the number of older people in our so.- where. From time to time other minor system of limited and selective migration to ciety who have left the labor market, and changes have been made, and a variety of the United States. I believe further that as the cost to their families and our public­ alternative bills altering the national there is no obligation or desirability on our welfare programs of supporting them origins quota has been advanced. In much part to admit without initial screening those through long chronic 1llnesses continues to of this work, we miss the services of Senator .who may become. criminals, subversives, or rise, the problem has become a crisis we can Lehman who led the fight for a long time. publlc charges--or to admit others ln a quan­ no longer· ignore. We must amend our But it seems to me that a full-scale, com­ tity or at a rate greater than even our own soc1al-securlty laws and meet this problem prehensiv-e basic reexamination of our fun­ dynamic economy can absorb properly. without further delay. damental 1ttlmigration pollcy 1s essential, · But it is the nature, not the existence, of Another problem which I can predict with not only by the Congress through its formal limitations and quallfi.cations which create certainty will be calling out for attention machinery but by the American people. We an injustice in our immigration policy today. .. , ·· 1958 CONGRESSIONAL RECORD- SENATE 1319 There are very few responsible and thought­ . There may well be other categories to which Fourth. I am concerned that our 1mml• ful persons in the world who do not recognize we should give preference if our immigration gration law with its quota .set essentially on that the United States, no longer in a posi­ policies are to be responsive to the real and national or ethnic lines may well in opera­ tion to absorb the large number of immi­ current needs of our national interest. To tion_ have prevented the movement to this grants who were so essential to its growth fulfill this goal it may be necessary to estab­ country of sk1lled workers and especially during the 19th century, must now maintain lish an annual immigration quota, reflecting scientists and engineers who are· so badly a system of selective and regulated migration. the current world conditions and Amerlcan needed. Therefore, I propose to establish The primary defect of our immigration policy economic trends, and subject to a review by a pool of nonquota visas when it is deter­ as viewed by foreigners is not that it is re­ the Congress at periodic intervals to evaluate mined that a visa is not ordinarily available strictive, not even that it admits too few each its effects on our Nation's economy and· for­ to persons possessing sk1lls essential to our year, but that it is based on false, discredited, eign relations. national. interests. or unjust principles. Finally, any such reevaluation of immigra­ There are no easy solutions to these prob­ Any comprehensive reexamination of tion policy must streamline our administra­ lems that will not bring new difficulties and American immigration policy must begin tive procedures in this area. We must be displeasures with them, but neither are they with a renewed declaration of basic American sure that they conform to reasonable stand­ easy problems. For whether we like it or principles: That one group of citizens in a ards of justice and that they do not vest not, :whether we tell them to stay or not, world now drawn together by hope and fear excessive arbitrary power in the hands of there will always be Hungarians fleeing from is not to be favored as more desirable than overworked and harassed officials. Our very Budap~st, Jews leaving Warsaw, Jtalians another group; that no American policy or form of .government is based upon a recog.;. leaving the poverty of their vlllages. In the legislation shall be based directly on race or nition of the principle that men are fallible, words of the Irish poet at the time of the national origt.ns; that American citizens are that checks and balances are necessary at great Irish exodus induced by both famine not to be classified for the rest of their lives every step and that those who have been and oppression: into two groups of widely differing rights and denied visas, for example, ought to have some "They are going, going, going., and we can­ privileges, . the native born and the natural­ right of appeal. not bid them stay ized; and that no program should encourage The McCarran-Walter Act was passed·over · For their fields are now tne stranger's arbitrary, inhumane administrative ma- Presidential veto and there is no reason to where the stranger's cattle stray, . chinery inexorably grinding out its decisions believe that it is possible for us to change But no foreign skies hold beauty like the in terms of cold statutes and statistics with­ all of its features. We have to realize that we rainy skies they knew. out regard for human values and emotions. have to be conscious always of _what it is Nor any night-wind cool the brow as did I do not say that there should be no prefer­ possible for us to do. Therefore, I believe the foggy dew." ence exercised, no distinctions made, no dif­ it absolutely essential, first of all, that we I do not predict with any certainty that we ferences recognized. In a nation desperately follow up our humanitarian admission of shall obtain such a comprehensive reex­ short of engineering, scientific, medi<:al, and 30,000 Hungarian refugees of the great re­ amination and revision of our immigration other sk1lls·, I would rather see us give a volt by regularizing their status here, by laws during the coming year. But I do say preference to an immigrant because he is a changing it from that of parolees to holders that such a step cannot be far away-that nuclear physicist than because he is an of permanent visas, which will enable them the course of human events proves conclu­ Anglo-Saxon. I would rather see us admit to set out on the road toward citizenship. sively that bigotry eventually gives way to those whose husbands or wives, parents or Second. We should redistribute the annual knowledge, expediency yields to humani­ children have long awaited their coming to quotas which today are wasted, either by ad­ tarianism, repression gives way to liberty. this country than those whose only claim to ministrative board who will take into ac­ The day cannot be far off when America will preference is the accidental color of their skin count the needs of the United States and of again have an immigration policy that all and hair. I would like to see us give prefer­ the countries ·involved; or through redis­ men can call fair, that all in need will deem ence to those who are refugees from religious tribution on a proportionate basis to all generous. We want a policy that was best described by Stephen Wise in that memor­ or political persecution, or who have found countries having less than a quota of 7,000 - .able keynote address to the preliminary con­ conditions of residence in their country in­ each year. ference of the American Jewish Congress· in tolerable, those whose frustrating, poverty­ Third. I believe that Congress should 1916, when he said that "the only program stricken existence in a refugee camp only gr~nt discretionary power-to the executive worthy of a great and proud people • • • 18 serves to feed the mills of Communist propa­ branch to provide exceptions from the pro• not relief-but redress; not palliation-but ganda. visions of law in certain hardship cases. prevention; not charity-but justice."

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