May 15, 1979 EXTENSIONS OF REMARKS 11347 EXTENSIONS OF REMARKS RABBI SAMUEL STAHL ON being blamed for the rampant inflation and connected in some logical way by a higher EINSTEIN unemployment in post-war Germany. Ein­ power. Everything had to work according to stein was personally attacked as a Jew. Some a well-laid-out plan and there was nothing right-wing newspapers charged that his "chancy" about .the universe. Einstein once HON. HENRY B. GONZALEZ Theory of Relativity was a foul plot to dis­ made the comment: "God is clever, but He credit German science. A few intensely patri­ is never malicious." OF TEXAS otic German scientists wrote articles defam­ UNCOMPROMISING IDEALIST IN THE HOUSE OF REPRESENTATIVES ing the relativity theory as "Bolshevism in Physics" and "Jewish Mathematics". More Einstein had difficulty drawing a. close con­ Monday, May 14, 1979 and more Jewish students were being re­ nection between God and His human crea­ • Mr. GONZALEZ. Mr. Speaker, of the fused admission to the universities of Ger­ tions. However, Einstein was an outspoken many things that were uttered and many. He became convinced that the Jewish and an uncompromising crusader !or human printed concerning the great Albert Ein­ people needed a national home to preserve rights. He followed the admonition ot the and build their idealism and to secure a Ethics of the Fathers: "In a place where stein recently on the occasion of the place of refuge. there are no men, strive thou to be a man." centenary of his birth, the most eloquent Two years later, in 1921, Einstein toured He was not one to go along with majority and unique was the sermon by a great the United States at the invitation of Chaim opinion. He usually stood on the unpopular religious leader of San Antonio, Tex., of Weizmann, the Russian-born British chem­ side of issues. He fiercely opposed Germany's TP.mple Beth-El, one of the most vener­ ist who had become the acknowledged leader desire to put a.11 Europe in flames during able and venerated temples in the South­ of Zionism. One of his major missions was World War I. He denounced the madness of west if not the entire United States. to raise funds for the proposed Hebrew Uni­ Germany's war efforts. A document called Because of its unique perspective I be­ versity on Mt Scopus in Jerusalem. He gave "Manifesto to the Civilized World" was cir­ heart-felt support to the Hebrew University. culated among the scientists, philosophers, lieve sincerely it will interest every It held out a proinise to rekindle Jewish writers, musicians and artists in various American, whether Jewish or not. idealism. It also provided an outstanding German universities. It said that Germany I therefore, Mr. Speaker, offer the text education to Jewish students from Russia, had to go to war to prevent her own cte­ of this address at this point: Poland, Romania, and Germany, who were struction. It affirmed tha.t German milltar­ being rejected by schools of higher learning ism and German culture were interwoven. THE JUDAISM OF ALBERT EINSTEIN in their own countries because of their Recently, during a commercial for a bank, Most of the academicians signed the Mani­ Jewish identity. festo. Einstein read it and laughed. He called television viewers were told: "You don't have His dedication to Zionism deepened over to be an Einstein to understand our free Lt an "Epic in Lunacy." the years. In 1929, Arabs mercilessly killed As obsessed as Einstein was with peace, checking account system." The name Ein­ Jews in a massive blood-bath in Palestine, stein, in everyday conversation, is synony­ for a significant period of his life, he ceased to protest Jewish colonization there. Soon being a pacifist. He was convinced that Hit­ mous with genius. His discovery of the Theory after, he wrote the plea which was pub­ of Relativity, while stlll a patent clerk in lished in American and European news­ ler was such a threat and a menace that he ·Zurich, Switzerland, in the early 1900's, papers. He reminded readers of these periodi­ had to be stopped, even by force. Ironically, called attention to his towering intellec­ cals that Jews paid for every inch of the he, who from earliest childhood hated sol­ tual prowess. Fascinating to admirers was land of Palestine, that Jews and Arabs could diers, uniforms, and war and killing, as­ the mind of Albert Einstein. When he died, live together harmoniously as neighbors if sisted in the development of the most de­ doctors removed his brain for a study that these blood-thirsty gangsters were rooted structive weapon ever conceived by human still continues almost 24 years later. out, and that the ideals of Zionism deserved beings, an atomic bomb tha.t could eradi­ This year we mark the lOOth anniversary world support. cate the lives o! thousands of people in less of the birth of Albert Einstein. We remember The Holocaust further intensified his feel­ than a second. However, he understood that 1! America him not only for his phenomenal intellect, ings of Zionism. So identified was he with but also for his eccentricities and his ab­ Zionism that, in 1952, when President Chaim did not build an atomic bomb, Hitler would sent-mindedness. Once he used a check as Weizmann died, Einstein was invited to be­ gain possession of such a bomb and would a book mark and then lost the check. There come his successor. He declined on the inflict even more barbaric destruction on the was that time that he went on a trip with grounds that he had neither the time nor world. a bag packed by his wife but never opened the patience to perform the many ceremonial With his hatred of Hitler in mind, Einstein the bag. On one occasion, he helped a young roles incumbent upon a President of the wrote President Roosevelt to ask for full girl with her arithmetic problems and she State of Israel. government support for what became known got all the answers wrong. as "The Manhattan Project" culminating in Yet, though he never held any position of the construction of America's atom bomb. Many recall him as a kind, warm, fatherly responsibillty in the Zionist movement nor and bumble person, saintly but yet dishev­ Being a lover of peace, Albert was later in the government of the State of Israel, his distressed by tJhe horrors of atomic warfare. eled in appearance. So consumed was be by convictions were best expressed in his own his work that in everyday conversation with He was sickened by the awful explosions over words: "Palestine wm be a center of culture Nagasaki and Hiroshima. He recognized the him, he would appear removed, pre-occupied for all Jews, a refuge for the m06t grievously and distracted. serious dangers of nuclear build-up. The oppressed, a field o! action for the best United states was the first nation to have Albert Einstein was born, llved, and died among us, a unifying ideal, and a means of the atomic bomb. In the future, it had to a .Tew. Yet his Judaism was very complex. attaining inward health for the Jews of the exercise certain moral restraints with respect He was born to an assimilated family in whole world." to its use. Germany. They practiced little formal reli­ BELIEVER IN SPINOZisnc GOD He foresaw that the American monopoly gion and hardly ever attended synagogue. In Yet, Einstein was more than a secular na­ on the bomb would not last indefinitely. Soon their life style, they were more German than tionalist Jew. He was not a synagogue goer other nations would develop their own nu­ Jewish. nor a ceremonial practitioner. However, he clear weapons. Wars between nations with Albert Einstein imitated his parents to the had a deep faith in God. Einstein believed in nuclear weapons would mean global destruc­ extent that he, too, never observed the rites the God of Spinoza. Spinoza was excom­ tion. and ceremonies of Judaism. Yet his Jewish municated by the Jewish leadership of Am­ Einstein proposed that no one government identification was much more pronounced. sterdam in the 1600's for his heretical views. should hold tJhe secret to the bomb, but that As a Jew, he wm be remembered as a fervent Yet, liberal Jewish groups hail Spinoza for it should be the possession of a world govern­ Zionist, as a believer in a God-concept his theological insights. Jn fact, the Library ment association to be founded by the United fashioned by Spinoza, and as an uncompro­ of the Hebrew Union College in Cincinnati States, the Soviet Union, and Great Britain­ mising social ideallst. once contained a Spinoza Room, with many the only three powers with great military ZIONIST of Spinoza's writings. Spinoza believed that strength. Until 1919, when Einstein was 40, Einstein God revealed himself in the harmony of Only when these nations come to agree on was a universallst. He hated all nationalisms everything that exists. Yet this God, who ls the control of the atomic and hydrogen bomb and could never support the notion of a responsible for order in the world, is not a can international peace ever become a reality. Jewish homeland in Palestine. But con­ personal deity. He is not concerned with the Thus, as a Zionist, as a believer in a nat­ ditions in post-war Germany converted him thoughts and actions o! individual human uralist God, and as a pursuer or peace, Ein­ into a passionate Zionist. The anti-Semitism beings. Everything in the uni verse, from the stein distinguished himself as a Jew. of that time and place seared him. Jews were smallest electron to the largest planet, was Judaism suited his temperament and lb.is

•This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. CXXV--714-Pa.rt 9 11348 EXTENSIONS OF REMARKS May 15, 1979 personality. When once asked what impressed to trade, for the first time they seek to pro­ culties of investigation, the time consuming him the most about Judaism, he gave the vide uniform codes for dealing with the cur­ nature of the process and the long delay be­ following aniswer: "Pursuit of knowledge rent aberrations in the international trade fore the duties were finally secured had made !or its own sake, a fanatical love of justice, arena. The substantive changes are supposed the countervailing duty an almost useless and a desire !or personal independence." In­ to yield positive benefits to the American tool. The new code attempts to hasten the deed, in his own life, he embodied all three. economy, private enterprise and the Beloit process by offering consultation options to Amen.e Corporation in particular. It is both the the signatories which entail a reasonable op­ foreign trade position of the U.S. and the portunity in which to clarify the situation Multilateral Trade Negotiation agreements and provide solutions before the traditional FOREIGN IMPORTS VERSUS U.S. which I would like to address myself to today. measures are begun. Prior consultation, in PRIVATE ENTERPRISE The u .s. tradl tionally has been the most effect, ls another form of preventive action, self-sufficient of the industrialized world exhibiting foresight rather than the usual economies. Prior to the seventies, the U.S. hindsight in dealing with this important HON. SILVIO 0. CONTE retained a high degree of independence as issue. And if this consultation bears no fruit she dabbled in economic affairs. Yet, this within a thirty day period, the complaint OF MASSACHUSETTS has changed in the seventies. Currently, 10% then proceeds to a conc111ation committee IN THE HOUSE OF REPRESENTATIVES of .the GNP is accounted for by the interna­ which has sixty days in which to present Monday, May 14, 1979 tional trade balance. And although this per­ findings and to recommend appropriate centage ls small relative to our trading part­ measures. • Mr. CONTE. Mr. Speaker, I would like ners, its absolute value dwarfs tha.t of any With regard to anti-dumping, the code to call the attention of my colleagues to other nation. In fact, the 1977 export figures provides for a new definition of dumping. an address I had the honor to present were $176 billion while imports were $187 The test will no longer be whether the im­ bllllon. And our increasing dependence on port is sold at less than fair market value. If before the Beloit Corp., which is as products can be proved to be exported at follows: the outside world has occurred at precisely a time when protectionist sentiment has less than comparable prices for like products REMARKS BY THE HONORABLE SILVIO 0. CoNTE reared its ugly head. Worldwide, nation deal­ at home, a finding of dumping would be Good morning. It is indeed an honor to be ing with increasing levels of unemploy­ automatic. If there is an adverse effect on here today to address this distinguished ment, high infiation and more citizen de­ either the volume or prices of domestic group. Beloit Corporation, characterized by a mands on the government take the easy way goods, retaliatory measures can be taken tradition of quality, service and innovation, against such exporters. The code also pro­ out and resort .to domestic solutions. Yet, vides !or a Committee on anti-dumping is an example of the type of enterprise upon such narrow vision in times of increasing which our strong American economy was practices which has a similar framework and interdependence has already wrought havoc purpose as the concmation committee men­ built. And Beloit offers the hope !or future with the international economy and threat­ growth and expansion of our economy as tioned above-to !ac111tate consultation ens to continue this trend. among signatories. they continue to provide increased einploy­ The Multilateral Trade Negotiations a.re ment opportunities, profits and technical The third area of interest to American in­ being touted as the way in which to stem dustries threatened by imports is the custom knowledge. Sales in 1953 of $25 milllon has this rising tide of protectionism. The culmi­ risen today to a level in excess of $250 mil­ valuation code. This code institutes a uni­ lion. From a single operating plant in Beloit, nation of five yea.rs of intense bargaining form standard of valuation for all imports. Wisconsin, in 27 years Beloit has expanded among 99 nations, it attempts to provide a Currently, nine different methods of valua­ her network worldwide to include manufac­ new framework for international trade. tion a.re used, which in effect means that turing centers in 14 of the world's key mar­ Dea.Ung for the first time with the non­ nine different import values and subse­ kets. Employment opportunities generated by ta.riff barriers, the agreements have come quently nine different duties can be assessed. the corporation have risen from 1200 to out with codes on government procure­ The new method o! appraisal is designed at 8000. And of crucial importance is the em­ ment, technical standards, import licensing, least to be neutral, fair and uniform. Termed phasis which Beloit continues to place on agriculture, counterve111ng duties, dumping the transaction value, it is the price actually research and development. Over $50 mlllion and customs valuation. The la.st three are of paid or payable for a product. No longer will invested in the last 10 years alone helps to particular importance to industries such prices and duties be subject to the whims of assure high performance and competitive as yours, threatened by the rapid lnfiux of those who utilize the code to their advan­ products for the pulp and paper industry foreign imports. tage . . . instead a uniform system wlll pre­ around the globe. As you are only too painfully aware, a vent this discriminatory and distorting Yet, in spite of the improvements in both large percentage of the market for paper action. size and productivity, the successes of Beloit making machinery has been eroded by for­ Some have already raised the cry that are being eroded by a relatively new phenom­ eign imports. In fa.ct, recent data show that Strauss has negotiated away all of our bar­ enon-the dramatically increasing number of imports have risen from 1.3% ~f the U.S. gaining chips. Others claim that Mr. Strauss foreign imports which have infiltrated U.S. market to 18% in 1978. I! this was solely ls far too good a negotiator to leave the U.S. markets. All of us are aware of the benefits a consequence of declining comparative ad­ without considerable fiexiblllty. Regardless Of a. free trade system-I wlll be the first to vantage, we might be willing to shoulder of who ls right, I should point out that a herald free and fair trade. But the current the burden o! lost markets. But the U.S. trump card still remains in U.S. hands-that system in which the U.S. operates can hardly market ls being captured through t;he un­ trump is the safeguard clause which is un­ be regarded as such. Under the guise of free fair practices of foreign governments who affected by the MTN. Safeguards are em­ trade, substantial non-tariff barriers, includ­ subsidize the production, marketing and ployed even when import competition ls ing subsidies, non-uniform methods of valu­ credLt costs of their paper industry machin­ gaining the home market purely on the basis ation, insurance schemes and the like, con­ ery sold abroad. I have written t-0 the Pres­ of comparative advantage, i/ a home produc­ tinue to be erected, distorting trade practices ident, advising him of the current p!oblems er is faced with serious market disruption. and inspiring discrimination. I wm not say faced by your industry and requested his The basic idea is to hold imports at bay the U.S. has been immune to the protection­ investigation of this. Yet, a long term so­ while giving the threatened industry some ist sentiment of the seventies-yet hardly to lution, universal in scope, is the only real time to adjust to the new realities. By not the degree employed by our other major answer. And Mr. Strauss claims that the bargaining a.way this escape clause, America trading partners. new code on subsidies and counterve111ng is thus assured continued flexibility In deal­ Such protection places the U.S. producer duties will provide such a solution. ing with other nations and continued pro­ at a considerable disadvantage with respect A counterveiling duty, as you may know, tection for the domestic producer. To sum it to the competitive nature of our goods­ is a special duty levied (or In your case, not up in one sentence, these codes are meant to both exports and those products consumed in levied) !or the purpose of off-setting any provide a more equitable global trading sys­ the domestic market. Economists have noted bounty or subsidy bestowed upon the manu­ tem In which all nations and all industries that the most striking development in U.S. facture, production or export of merchan­ within those nations are afforded similar op­ international trade has been the emergence dise. The signatories of the MTN agree not portunities for growth and expansion. in ,1977 and the continuation in 1978 and to use export subsidies 1f they will in turn Thus, they should not be judged simply on 1979 of an unprecedented trade deficit in the threaten material injury to the Industry of the economic benefits 'Which accrue to the merchandise account-a. deficit which has another signatory. The term injury has been U.S. What is crucial ls whether the MTN undermined confidence in the dollar and expanded to include not only present in­ stems the rising tides o! protectionism which sapped America of her economic vitality. jury, but the threat of Injury or the retarda­ continues to distort trade. The U.S. economy, There are remedies to this balance of trade tion of the establishment of such an indus­ currently plagued by a host of problems can­ disequ111brium-but short term solutions will try. This more encompassing definition ls not prosper in such an environment. Amer­ no longer sumce. What is required, and now, meant to transform the traditional duties, ica needs to expand her export markets, she is a new trading system-one marked by often characterized as burial assistance, tp needs to reduce inflation, she needs to create equality of opportunity for all nations. This a form of preventive insurance for U.S. firms. greater employment opportu~tles, she needs of course, is the projected aim of the re­ The bulk of the new subsidy code deals with to correct her trade deficit and finally she cently completed Multilateral Trade Negotia­ procedures for the handling of counterva.11- needs to restore confidence in the dollar. Two tions. In addition to lowering tariff barriers ing duty complaints. In the pa.st, the diftl- things are necessary to realize these goals. May 15, 1979 EXTENSIONS OF REMARKS 11349 One is a freer world economy, the second, a country. The issues raised ranged from explain how this paradise emerged in the strong private enterprise system. As in the the 1980 census to infiation and unem­ 1930s from the hell of the 1880s. past, we need the pragmatic, efficient, yet in­ ployment. Additionally, the coalition in­ One major element was universal nation­ novative spirit of private enterprise. Gov­ al service. All youngsters were conscripted ernment and business must join hands in an vited the Subcommittees on Census and at age 21 to serve 24 years in the "industrial effort to restore the economy to its position Population and on Crime to conduct army." During the first three years, they do of strength. hearings in Houston. I believe that the the world's dirty work, and are "assignable We need the help of Corporations such as insight provided by witnesses from the to any work at the discretion of ... supervi­ the Beloit group to once again assure a black and Hispanic communities gave sors." These three years are "a sort of school, healthy America. The corporations have been the subcommittees a unique understand­ and a very strict one, in which men are crying for a fa.ir shake-an equal opportunity ing of our problems, and will greatly en­ taught haoits of obedience, subordination for expansion and growth. The Adminis­ and devotion to duty." For the next 21 years. tration claims that the trade negotiation hance the future work of Congress. the members of the "industrial army" are agreements wlll provide you with such and The coalition, on which I am honored given a choice of occupations to follow, simultaneously the chance for U.S. eco­ to serve as cochairman, plans increas­ subject, of course, "to necessary regulation." nomic recovery. ing activity to promote the well-being At age 45, they are discharged from labor, I have summarized for you this morning and advancement of the black and His­ though subject to special calls until age 55, the arguments I have been presented in panic people, we hope to be a productive and enjoy an affi.uent retirement. favor of the New Trade Agreements. What and effective influence on this Congress. It sounds fine. But it so happens that I would like you to do now, and later as I would, at this time, like to submit I read Bellamy during the 1930s. What struck things continue to develop, is to give me for the RECORD how I would have voted me most forcibly about his "industrial army" your reactions and views to this. was its uncanny resemblance to the Hitler Although I may have sounded like it at on the recorded votes which were con­ Jugend-battalions of happy blue-eyed times, I am not now a proponent of the sidered on Monday, May 7 during my Aryans marching off with shovels on their MTN. I have serious misgivings. I am a pro­ participation in these activities in shoulders singing "Deutschland tiber alles." ponent of free trade, but only if it is shown Houston: The comparison is not fanciful. The to be truly "fair trade". I want United Rollcall No. 121, "yea." young who are conscripted for "good" States manufacturers to be on an equal Rollcall No. 122, "nay." purposes must be given basic training. Who footing. If that means adopting protection­ Rollcall No. 123, "nay." decides what that shall consist of? What ists measures to counteract those of our so­ ideas shall they be indoctrinated with? What called trading partners, then I'll be a purposes are "good"? Someone has to assign protectionist. In this instance, the burden of the youngsters to various activities. Someone proof is clearly on the administration. has to enforce discipline on them. What a On another note, I know that you are UNIVERSAL NATIONAL SERVICE? power to fall into the wrong hands. What a interested in product liability. The Depart­ power for the wrong hands to seek. ment of Commerce working within the De­ A monstrosity: The well-meaning current partment of Justice has come up with a HON. RON PAUL sponsors of universal national service wlll Draft Uniform Product Liability Law. The OF TEXAS recoil at that prospect. They would Insist text appears in the January 12th issue of the IN THE HOUSE OF REPRESENTATIVES on letting the youngsters choose for them­ Federal Register. · selves how they serve. That is what happens The Department of Commerce hopes that Tuesday, May 15, 1979 now. via the market system, in which market states will adopt the provisions on their own. • Mr. PAUL. Mr. Speaker recently No­ wages equate supply and demand. But uni­ If not, the Congress could impose the basic bel Laureate Milton Friedman gave versal national service ls meaningless unless standards on the states by statute. It involves equal pay-which also means I have here copies of a summary of the some excellent economic arguments control and direction of labor. Even Bellamy Uniform law. I would appreciate it if you against universal national service in had no Uluslons about that. During the first could look this over in the next week or so Newsweek. three years of service, he permitted no choice. and let me know what you think of it. I Although I believe the most important Thereafter, he proposed to equate supply would also appreciate your letting me know arguments against national service, and demand by varying the number of hours whether we should leave this up to the conscription, and registration are moral ot work required. but even so, "a man able states or try to pass a federal law imposing and constitutional, as well as military, to do duty, and persistently refusing. is this on the states. With regard to imposing I would like to bring some of Dr. Fried­ sentenced to solitary imprisonment on bread the standards by Federal law, I should warn man's comments to my colleagues at­ and water until he consents." you that such a blll would probably invite No. However appealing at first sight, uni­ some dangerous amendments (1.e. federali­ tention: versal national service is a monstrosity zation of workmen's compensation). So keep UNIVERSAL NATIONAL SERVICE utterly inconsl!"tent with a free society. It that in mind in deciding whether to pursue (By Milton Friedman) should be shunned like the plague it ls.e this at the federal, as opposed to the state A by-product of the campaign against a level. volunteer armed force has been renewed I hope that this has been a profitable support for universal national service. Con­ morning for you and I look forward to the gressman Paul McCioskey of California and FRANCES BURTENSHAW: AMERICAN feedback I anticipate that this talk has gen­ fourteen co-sponsors recently introduced a MOTHER OF THE YEAR erated. Thank you.e bill that would require every young man and woman to serve either for two years in the military forces or for one year in some HON. GUNN McKAY BLACK-HISPANIC DEMOCRATIC form of civilian service. Presidential can­ OF UTAH COALITION didate John Connally has long supported a similar system of national service .... IN THE HOUSE OF REPRESENTATIVES It ls tempting, at first sight, to escape the Tuesday, May 15, 1979 HON. MICKEY LELAND obvious inequity and arbitrariness of a sys­ OF TEXAS tem of selective military service by includ­ • Mr. McKAY. Mr. Speaker, it is my dis­ tinct honor today to pay tribute to a fine IN THE HOUSE OF REPRESENTATIVES ing all young people and assigning them to a wider range of national tasks, such as serv­ woman in my district, Mrs. Frances Davis Monday, May 14, 1979 ice in hospitals, schools, slum areas, nation­ Burtenshaw of Logan, Utah, who recent­ •Mr. LELAND. Mr. Speaker, I want to al parks and so on. That would equalize the ly was selected by the American Mothers burden of compulsory service while at the Committee as American Mother of the take this opportunity to share with my same time stamng the mmtary. colleagues the details of an historic and Universal national service ls an idea of Year. unusual meeting which occurred in long standing. Indeed, the most persuasive The award was established 44 years ago Houston, Tex., this past weekend. There, case for it that I know is contained in a book to help develop and strengthen the moral for the first time in history, representa­ published in 1887, "Looking Backward," by and spiritual foundations of the Ameri­ tives of the newly formed Black-His­ Edward Bellamy, which sold in the millions can home and spotlight the role of moth­ panic Democratic Coalition held a town­ and sparked a widespread national move­ ers in the home, the community, the na­ ment. Edward Bellamy clubs sprang up all tion and the world. hall meeting. At this meeting, members over the country. of these growing minority communities, His book sketched a fictional utopia. A Mrs. Burtenshaw and her husband, who have often been divided in the past, Rip van Winkle character goes to sleep in Claude, are both friends of mine, and I were given the chance to talk about 1887 and wakes up in the year 2000, to find can testify to the soundness of the com­ their common problems with political the world changed into a veritable paradise. mittee's decision. and community leaders from around the Looking backward, his new companions Mrs. Burtenshaw iS the mother of six 11350 EXTENSIONS OF REMARKS May 15, 1979 daughters and two sons and the grand­ An interesting perspective on U.S. deficits abhor the straitjacket of such controls-the mother of 1 7 yowigsters. She is a former is provided by recent OF.CD figures showing loss of economic freedom, the chicanery and missionary and a drama teacher. Her overall government deficits as a percentage cheating they invite, the warping of resource of GNP in the seven major OECD countries. allocation they generate, and so on. Alfred children, and all of her friends, know her For 1977, 1978 and projected 1979, the U.S., Kahn, as usual, puts it most graphically: as one of the warmest, most selfless in­ to use Mr. Miyoshi's metaphor, won the gold "Direct controls are a stinking mess." dividuals in their experience. medal with the smallest deficits, averaging (2) leading members of Congress that I believe that these are attributes of less than 1 percent of the GNP. Germany's would have to legislate controls authority­ all mothers, with variations only in de­ government deficits, by contrast, averaged like Congressman Reuss and Senator Prox­ 3 percent, and Japan's, 6 percent of the GNP mire-have voiced sharp opposition. gree. These qualities often serve as the (or, more precisely, GDP). glue which holds the modern American (3) the business community, which tacitly Looking ahead to 1980, Mr. Carter's budget and often vocally supported controls in 1971, family together in spite of strong social proposal reflects a coupling of his innate fis­ is almost solidly opposed today. pressures which threaten to undercut the cal conservatism with the "Proposition 13 In brief, I count the odds at roughly three integrity of the family unit. mood" of the country. Let me cite four to two against surrendering to direct con­ quick measures of how restrained the Carter trols.e Many of us are concerned about the budget is: trend displacement of the family's cen­ It calls for only a 7.7 percent rise in spend­ tral role in our society. Several factors ing as against an average of 12.2 percent are contributing to this trend-factors from 1973 to 1978. FUSION RESEARCH AT LAWRENCE both within and without the realm of It would bring the ratio of federal spend­ LIVERMORE LABORATORY government concern. Whatever the ing down to 21 percent of GNP from its high cause, the tragic results of these attacks of nearly 23 percent in 1975-76. HON. FORTNEY H. (PETE) STARK on the family wiit are plainly seen in any The $531 billion of projected spending number of social indicators, and gov­ falls $20 billion short of merely funding cur­ OF CALIFORNIA rent services under current laws. IN THE HOUSE OF REPRESENTATIVES ernment often must step in at great cost And in economic terms, the high-employ­ to clean up the debris. ment deficit would shrink from $31 blllion Tuesday, May 15, 1979 Mr. Speaker, the real strength of our in 1978 to $23 billion in 1979 and $8 billion • Mr. STARK. Mr. Speaker, I strongly nation is not measured in terms of GNP in 1980. support exploration of fusion energy as or in terms of ICBM's or in troops In the U.S., that truly qualifies as fiscal austerity. And the Congressional budget an alternative to fission energy. The fol­ stationed at home or overseas. The true committees, far from upsetting the fiscal lowing article on fusion research ap­ foundation of our strength is to be found applecart, have gone Mr. Carter one better peared in the May 15, 1979, New York in homes which are blessed with loving by shaving the Carter deficit by another $5 Times and outlines the important role parents like Frances Burtenshaw.• to $10 blllion. of the Lawrence Livermore Laboratory in INFLATION AND WAGE-PRICE RESTRAINT Livermore, Calif. I commend this article Picking apart the generally dismal double­ to my colleagues: digit inflation numbers of recent months (I FuSION: THE ANSWER TO FISSION? ECONOMIST WALTER W. HELLER refer to the consumer and producer prices COMMENTS ON U.S. POLICIES indexes-the GNP deflator has held in about (By Walter Sullivan) 8Y:z percent area for the past half year), one Never before has the derivation of energy can find some rays of hope on two fronts: through the splitting of atoms been in great­ HON. BRUCE F. VENTO From October to March, taking out energy, er disrepute. The accident at the Three Mile OF MINNESOTA housing and the farm component of food, Island nuclear power plant in Pennsylvania. IN THE HOUSE OF REPRESENTATIVES the remaining two-thirds of the Consumer has been followed by reports suggesting that Price Index has risen at 6Y:z percent rate. even low-level radiation from such plants Tuesday, May 15, 1979 What's the purpose of this calculation? After can be hazardous. • Mr. VENTO. Mr. Speaker, my good the next couple of months-when the infla­ Might the answer be fusion--deriving nu­ tion readings are bound to be bad-the farm, clear energy by combining small atoms in­ friend and constituent, Walter W. Hel­ housing and later the energy components of stead of splitting big ones, It should produce ler, regent's professor of economics, Uni­ inflation should taper off significantly. far less hazardous waste and, it is hoped, ulti­ versity of Minnesota recently had the The average hourly earnings index, which mately burn fuel that is virtually unlimited. occasion to present his comments on the was up 8.4% from February to October last Sufficient research progress has been made American economy to the Trilateral year, has held to an 8.3% rise from October to embolden the Department of Energy to Commission in Tokyo. to March-no acceleration of underlying set a step-by-step timetable leading to con­ As wage-price is refiected here. struction of the first demonstration fusion always, Dr. Heller is eminently On the qualitative side, one can see a num­ reactor to generate power. worth listening to, because of his ideas ber of inflationary forces that should be less However, that high point in the effort to and his lucid analyses of complicated virulent as the year goes on: harness the energy of the sun wlll have to be economic forces. I want, particularly, to The worst of any food price rise, barring preceded by a succession of difficult decisions, call attention to his remarks on :fiscal drouth or deluge, lies behind us. progressively setting aside all but one of the monetary policy and inflation and wage­ The stabilizing of the dollar will reduce the potential paths toward fusion. price restraints. import-price push. Fission is a contrived process. In a reactor, I am pleased to include these segments The peaking of interest rates will remove it generates a wide range of lethal byproducts of a wide-ranging economic survey in another cost-push force, especially from whose safe handling is a problem. Fusion, on housing and business costs. the other hand, is nature's way. It is what the CONGRESSIONAL RECORD and to share makes stars shine, providing the solar energy with my colleagues the wisdom of one of Oil price impacts wlll be less pronounced that has made life possible on earth. A fu­ our great minds, Walter W. Heller: later in 1979. Granted, the 20% to 25% rise sion reactor would produce helium, which is in OPEC prices this year wlll add from $10 not radioactive, although the process would EXCERPTS FROM A PRESENTATION OF DR. WALTER to $12 blllion to the U.S. fuel bill. But per­ W. HELLER TO THE TRILATERAL COMMISSION haps three-quarters of this cost in price up­ generate radioactivity in the reactor's struc­ IN TOKYO thrust wlll be behind us by late summer. It tural materials. FISCAL-MONETARY POLICY is true that Mr. Carter's decontrol program In fission, massive a toms such as those of Implicit in this forecast of a soft U.S. wlll raise the average price of domestic oil uranium 235 are split. But in a fusion reactor, economy is a judgment that U.S. monetary­ from $10.44 per barrel in December 1978 to the nuclei of very small atoms, such as the .fiscal policy is restrictive and will become $15.60 in December 1980. But the price im­ two heavy forms of hydrogen (deuterium and more so. Let me make that explicit. pact in 1979 will be modest, and the overall tritium), would be fused into helium nuclei. effect of full decontrol (after October 1981) In both cases, the resulting atoms weigh As to budget policy, I have already cited slightly less than those entering the reaction some evidence on taxes and government pur­ on the price level is estimated variously at 0.5 to 0.8%. and the residual mass is converted into a chases that suggests moderation if not out­ great deal of energy. right restriction. The projected shrinkage in Are mandatory controls on the way in 1979 the federal deficit from $49 billion in fiscal or 1980? The U.S. public wants them, demon­ Researchers in a half-dozen countries are 1978 to $33 billion this year and $28 billion strating that it had failed to learn its lesson trying to harness fusion reactions. Though next year (on Mr. Carter's no-recession ·as­ on mandatory wage-price controls (perhaps some have been workin~ on the problem for sumption) is further evidence of the move because we economists have failed to get the 30 years, they admit that fusion is for the toward more restrictive fiscal policy. (But lesson across}. Well over 50% say "yes" on next generation, not this one. don't be surprised 1! the actual deficit in public opinion polls asking whether ce111ngs Tempering their optimism is an awareness fiscal 1980 weighs in at about $40 billion as should be put on prices and wages. But sev­ of the history of today's atomic reactors. the slowdown shrinks revenues and boosts eral factors militate against them: What a generation ago seemed a golden path transfer payments.) ( 1) to a man, the Carter policy-makers to cheap, almost unliimted energy has proved May 15, 1979 EXTENSIONS OF REMARKS 11351 to be a costly, rocky road, stlll far !ram its will be a choice between lasers and particle quest for help in obtaining a subsidy goal and beset by difficulties. beams as the best way to smash fuel pellets. from the taxpayers. Nevertheless, last month John W. Deutch, At the Livermore Laboratory, another de­ The answer to Trailway's problems­ Assistant Secretary for Energy Technology in vice, the Shiva-Nova laser machine, is ex­ pected to cost at least $197 million. The as the city council points out-is deregu­ the Department of Energy, told a Senate sub­ lation, not Federal subsidies. committee that "significant commercial de­ Shiva facility, which is already in operation, velopment" of fusion should begin in about converges 20 laser beams on a !uel pellet, Because of its clear-headed approach 2020. crushing its deuterium-tritium droplet to to the questions of regulations and sub­ TWO APPROACHES TO PROBLEM 10,000 times the original density. For a bil­ sidies, I would like to call this excellent lionth of a second, it delivers more energy to Two routes toward fusion are being pur­ resolution to my colleagues' attention, the target than that in all the power lines with the hope that they may take its sued. One is magnetic confinement, which, of the United States. in a "magnetic bottle," seeks to squeeze and lessons to heart: DOUBLING OF DELIVERED ENERGY heat fuel sufficiently !or atomic nuclei to RESOLUTION No. 224, CITY OF ANGLETON, TEX. fuse and release energy. The other is "iner­ Adding additional beams for the Nova Whereas, Trailways Bus Company has re­ tial confinement," in which converging high­ phase of the project will more than double quested that the City of Angleton write to energy beams crush a pellet of fuel to su!­ its power, and the device, when completed the Texas State Department of Transporta­ ficien t temperature and density. about 1983, should generate more fusion en­ tion in support of Tra.ilways application for Magnetic confinement, using the so-called ergy than is delivered to the pellet by the inclusion in the State's "Program of Proj­ Tokamak method, which originated in the lasers. But because the lasers are inefficient, ects", so that Trailways may receive federal Soviet Union, is the most advanced line o! the power required to operate Nova will far funds provided by the Surface Transporta­ attack. Large-scale Tokamak devices are be­ exceed that produced. tion Assistance Act of 1978, and; ing built in Britain, Japan, the Soviet Union Several laboratories-notably the Los Whereas, it has been represented that Alamos Scientific Laboratory in New Mexico, and at Princeton University in the United Trailways needs these funds to continue to States. the KMS Fusion Company in Ann Arbor, provide the bus service presently avaUable The Princeton device, known as the Toka­ Mich., the University of Rochester in New to the City of Angleton because they have mak Fusion Test Reactor, has a projected York and the Naval Research Laboratory­ "suffered from declining load factors and cost of $240 million. It is to begin operation are seeking to develop more efficient lasers. squeezed profits for several years", and; in 1981 and is expected to be the first fusion Efforts to do the job with converging Whereas, it has been represented further device to generate as much energy as is in­ beams of electrons are concentrated chiefly that these conditions have been brought jected into the reaction chamber. It will not, at Sandia Laboratories near Albuquerque, about for many reasons, which include "de­ however, "break even" by matching the N.M., where the first-phase of a giant Elec­ regulation of airlines" and "continued tight power needed to run the entire operation. tron Beam Fusion Accelerator is to be com­ restrictions by the regulatory agencies on In a Tokamak, deuterium-tritium gas is pleted in about a year. The Argonne Na­ the bus industry, prohibiting free compe­ heated until the atoms shed their electrons, tional Laboratory in Illinois is exploring an tition in our (bus) industry", a.nd; forming a plasma of electrically charged approach using beams of heavier atoms. Whereas, the City Council of the City o! particles that can be confined magnetically. In each case, when a choice between Angleton is of the opinion that the proper In the Princton reactor, the temperature rival approaches has been made, an Engi­ solution to these problems would be the de­ and density of the plasma are increased by neering Test Facility will be built to de­ regulation of the bus industry rather than firing electrically neutral beams into the velop the technology. The facility to test the the use of Federal subsidy; plasma. The neutral particles can traverse winner in the Tokamak versus mirror-ma­ Now, therefore, be it resolved by the City the magnetic fields confining the plasma. chine competition will cost some $600 Council of the City of Angleton, Texas: That Last summer, the predecessor of the giant million. the deregulation of the bus industry would machine being built at Princeton-the By 1995, these facilities should have ad­ be and is in the best interests of the citizens Princton Large Torus--demonstrated that vanced far enough for the Energy Depart­ of this City and of this country. the high temperatures needed for a power­ ment to make its choice between magnetic confinement and pellet crushing. Eight years Passed and adopted on the 24th day o! generating Tokamak could be achieved. In a April, 1979. parallel advance at the Massachusetts Insti­ will then be spent building an Engineering tute of Technology, another Tokamak design Power Reactor at a cost of $1 billion, to be­ CHARLES W. COLE, gin operation in 2004. A year later, a decision Mayor. substantially increased the combination o! Attest: plasma density and confinement time. could be made on building a demonstration plant to begin generating power in 2015. RUTH HERTEL, Two other designs are being funded by City secretary.e the Department o! Energy. These are the Fusion will not be without its problems, Doublet III machine being developed by the although they are expected to be far less diffi­ General Atomic Company in San Diego and cult than those of fission energy. Tritium, re­ the Elmo Bumpy Torus at Oak Ridge Na­ quired for the fuel of systems now under de­ tional Laboratory in Tennessee. velopment, does not occur in nature in any HERMANN HOSPITAL abundance. It must be made in the reactor Scientists are also planning an interna­ by transforming lithium, which itself is not tional device that would go one step farther, abundant, although som~ believe enough HON. MICKEY LELAND exploring the problems of converting fusion can be found on land to last 1,000 years. Tri­ OF TEXAS energy into electricity. This facility, the In­ tium, which is radioactive, is also hazardous ternational Tokamak Reactor, should if released. Ultimately, it is hoped fusion re­ IN THE HOUSE OF REPRESENTATIVES achieve "ignition"-a situation in which act ors will achieve sufficiently high tempera­ Monday, May 14, 1979 helium, formed by the fusion of deuterium tures to use pure deuterium fuel, available in and tritium, becames hot enough to sustain all sea water·• • Mr. LELAND. Mr. Speaker, I would the reaction without further energy input. like to bring to the attention of the Con­ PULSES OF POWER gress that today, May 14, marks the in­ Officials of the Department of Energy, con­ GOVERNMENT INTERVENTION AND auguration of the life flight long distance cerned at the complexity and cost of the SUBSIDIES program at Hermann Hospital in Hous­ Tokamak approach and at the fact that it ton, Tex. would generate power in pulses rather than August l, 1976, Hermann Hospital, with continuously, have decided to support as HON. RON PAUL well a rival approach using "mirror ma­ the assistance of the University of Texas chines," in which heated plasma particles OF TEXAS Medical School, established a 24-hour-a­ fly between intense magnetic fields that act IN THE HOUSE OF REPRESENTATIVES day emergency helicopter transport sys­ as mirrors. Tuesday, May 15, 1979 tem which extends the emergency treat­ A Mirror Fusion Test Facility is being built ment services of the world renowned at the Lawrence Livermore Laboratory, • Mr. PAUL. Mr. Speaker, this city is Texas Medical Center to the scene of an which is operated by the University o! Cali­ inundated by the special interests seek­ accident or disaster. The creation of the fornia. The facility, to be completed in 1981 ing Government interventions and sub­ life flight program resulted from the in­ at a cost of $94.2 million, will explore the sidies. Some are sought in a vain attempt creasing number of serious accidents and feasibility of two mirror configurations. If to repair the effects of past Government critical illnesses that require the sophisti­ one proves practical, it could mean a device interventions. smaller, simpler and cheaper than a Toka­ cated services available only at the Texas mak that might be able to generate power But this is the path to economic ruin. Medical Center. Also, the increased traf­ continuously. The elected officials of the city of fic congestion of the Houston area has The first milestone in the Energy Depart­ Angleton, Tex., understand this, unlike made it difficult for ground emergency ment's timetable, set for 1983, is choosing most of the Washington politicians. Re­ vehicles to quickly transport emergency between the Tokamak and mirror-machine cently the mayor and city council of patients in critical situations. approaches. Angleton passed an eloquent resolution Life flight is staffed by registered The next major decision, slated for 1986, in response to Trailways Bus Co.'s re- nurses specializing in emergency care 11352 EXTENSIONS OF REMARKS May 15, 1979 and residents from the University of computed by considering the total new VA facility will provide a central­ Texas Department of Surgery. This pro­ amount of gasoline consumed per year ized health care system to these patients gram has responded to a vital need in by each State, including residential and who now move among the various out­ emergency treatment and has meant the nonresidential consumption each State's .i:-atien t clinics, constantly seeing differ­ saving of countless lives by reaching allotment would be based on figures from ent doctors. victims in life-threatening situations. 1975 until the time the President imple­ The Loch Raven Hospital was designed Today's inauguration of the life flight mented the rationing plan. But, accord­ as a tuberculosis hospital. Its facilities long-distance program now provides ing to this plan, a Maryland driver would are not well suited to the needs of an emergency services to and from any area have been given several gallons less per all around medical hospital. It is obso­ in the continental United States, Mexico, month than a Virginia driver facing pre­ lescent and its design seriously exacer­ Central America, South America, and cisely the same circumstances, because bated a nursing shortage problem we had Canada. Each turboprop jet will be equip­ one State sold more gas than another. last year. With the construction of a ped to accommodate three patients with The lack of information concerning the new VA hospital, Loch Raven could be a registered nurse trained in comprehen­ historic-use formula is further illustrated converted into an extended care facility. sive emergency treatment. Life flight by the plan failing to explain how States Patients would be moved from one fa­ long-distance jets are an extension of that got the least gas, like Pennsylvania, cility to the other, reducing the length Hermann Hospital's Emergency/Trauma were considered. of acute hospital stay and thereby re­ Center with medication and life-support­ In addition to this confusion, there was ducing costs. ing equipment. no time to evaluate the plan properly. The construction of a new VA Hos­ I highly commend the life flight pro­ During the week, the proposal was altered pital would solve many problems which gram and its creators for their foresight several times, copies of the final plan currently face some of the existing fa­ and contributions to the delivery of were few and difficult to secure, and in­ cilities. Safety code violations which health care in the Houston area. Their formation from the White House was often tend to include fire hazards and continuing efforts are an example for nearly nonexistent. "dead-end" corridors would be eliini­ the entire Nation. I hope other health Without doubt, we need a rationing nated if the new VA facility would be care facilities will institute similar pro­ plan to weather a severe gas shortage. built. Also of importance to patients will grams in the near future.• But we need one that will adequately pro­ be the hospital's new location. Being vide for all sections of the country. To downtown, the new facility would be devise such a balanced proposal, I think easily accessible to its patients by public it is imperative to keep the plan open to transportation-which is not the case GAS RATIONING input from all concerned Members.• with some of the existing facilities. The hospital would also solve one of the ma­ jor problems facing the VA in Balti­ HON. DON BAILEY more-it will fulfill the much needed de­ OF PENNSYLVANIA NEED FOR VA HOSPITALS IN mand for acute psychiatric beds-there IN THE HOUSE OF REPRESENTATIVES BALTIMORE will be 60 at the new facility. Tuesday, May 15, 1979 Providing adequate high quality • Mr. BAILEY. Mr. Speaker, it is only HON. BARBARA A. MIKULSKI health care for the veterans of Balti­ more--and of Maryland-is a serious reasonable and responsible for this coun­ OF MARYLAND task requiring serious consideration. It try to have a standby gas rationing pro­ IN THE HOUSE OF REPRESENTATIVES gram to rely on should a severe gasoline is vital that no hasty judgments be made shortage occur. Tuesday, May 15, 1979 that could jeopardize the quality of that However, we need a plan that is going e Ms. MIKULSKI. Mr. Speaker, I wish care.• to be fair to all citizens, one that is re­ to submit the following statement to sup­ sponsive to their needs. In my opinion, plement the colloquy which took place A TAX CREDIT FOR HIGHER President Carter's proposal was neither on the House floor on May 3 between EDUCATION fair nor responsive but was vague and Representatives FLORIO, GIAIMO, RoBERTS, insensitive toward the needs of rural and me. The issue under discussion was States. the need for the proposed Veterans' Ad­ HON. HERBERT E. HARRIS II My own State of Pennsylvania, with ministration hospitals in Baltimore. The OF vmGINIA the greatest rural population in the following statement further details my IN THE HOUSE OF REPRESENTATIVES country came up a "loser" when the for­ views on this issue. Tuesday, May 15, 1979 mula for allocating gas was based solely In the metropolitan Baltimore area on the State's historic use. there are 250.000 veterans. In the State • Mr. HARRIS. Mr. Speaker, today I The historic-use variable failed to be of Maryland 621,000 veterans depend on am introducing legislation that would flexible enough to recognize that there is medical services provided by the VA. It is allow individuals to claim a tax credit a difference in geographic need for gaso­ expected that by 1985 half of the vet­ for a portion of the expenses of higher line; some persons must drive longer erans in the State will be over 60 years education. Tuition tax credits are a distances to economically survive. of age. With these facts in mind, the VA simple, direct, and effective way to help Many persons in rural areas such as must be able to make changes in their families deal with the skyrocketing costs parts of my district, the 21st Congres­ health care systems to best accommodate of college. sional District of Pennsylvania, must this generation of veterans who will be The Harris bill covers the broad spec­ drive many miles just to get to and from requiring increased and different health­ trum of postsecondary education. More their work. Also, they rely on their cars related services. ~ha~ 10_ million students at a variety of to get to grocery stores and for any emer­ Outpatient services in the Baltimore mst1tutions-public and private; 4-year gency transportation. There is no mass area are now located at Loch Raven VA and 2-year-would benefit from passage transportation for them to fall back on Hospital and two other facilities. The of this legislation. Colleges, universities, when gasoline becomes scarce. Loch Raven Hospital sees 71,000 patients community and junior colleges, business If the administration's plan was will­ on an outpatient basis annually. Since schools, trade schools, technical institu­ ing to give extra allocations to areas like Loch Raven cannot handle the great in­ tions, and vocational training centers the District of Columbia and Florida to flux of patients demanding ambulatory are all eligible institutions under my bill. accommodate tourism, then it is only fair care, it has set up an outpg,tient facility NEED FOR ASSISTANCE that Pennsylvania and other States with in downtown Baltimore at the Federal As we all know, middle-income fam­ rural populations be given enough gas to building. This outpatient clinic saw 85,- ilies are finding it increasingly difficult accommodate necessity. But the his­ 000 patients last year. This means of ad­ to pay for college expenses. The college toric-use formula was not fair and was ministering outpatient care, by shifting entrance examination board reports vaguely defined. patients between facilities, has resulted that between 1970 and 1977 the average Although in theory it seemed logical, in in a lack of continuity of the health care tuition and fees for 4-year colleges rose actuality it was inequitable. Having been services that these veterans receive. The 54 percent at private institutions and 57 May 15, 1979 EXTENSIONS OF REMARKS 11353 percent at public institutions. A survey high school graduates in the Eighth Con­ cally there have been massive undercounts" gressional District are deciding to con­ of black and Hispanic residents. put out by the board in April 1978 indi­ A similar hearing was held in New York cated that for the 1978-79 school year tinue their education. Last year, 75 per­ on March 30 at which the subcommittee the average total costs of attending a cent of seniors who graduated from the was told of four census takers who were private, 4-year college will be $5,110, Fairfax County public schools decided to caught filing fictitious reports in a census with tuition and fees alone averaging attend some form of postsecondary edu­ dry-run in lower Manhattan. $2,647. cation. In the city of Alexandria, 67 per­ GAP OF 300,000 REPORTED With medical, food, housing, and cent elected to continue their educa­ The Houston area Urban League, which energy costs escalating at double-digit tional pursuits, as did 41 percent in was among the groups that offered testi­ infiation rates, it is apparent that in­ Prince William County. mony, has estimated that Harris County, creased costs for education are cutting RELIEF NOW which includes Houston, was undercounted into already tight budgets. The burden My bill attempts to correct a major by more than 300,000 individuals in the of higher costs for college on top of the 1970 census, with a resulting loss to the re­ deficiency in our tax laws. Presently, the gion of more than $6 m1llion in Federal rev­ rising costs of the basic necessities has law provides relief only for educational enue sharing funds alone. The 1970 Cen­ resulted in a decrease in the rate at expenses incurred for training required sus set Houston's population at 1.23 m1llion. which middle-income persons are at­ to maintain one's position of employ­ "We'll never be able to turn the corner tending college over the last 10 years. ment. No relief is provided for students for all Americans unless we have the data According to a Brookings Institution who are pursuing education or training to start with," declared Mr. Garcia. He has study: for their career. Thus, a $50,000-a-year said that be cannot recall being counted Students with family incomes between business executive can take a tax deduc­ himself in the 1970 census, and he remains $15,000 and $25,000 a year face a substan­ tion for the expenses of a refresher unconvinced that the effort next year, which tially wider tuition gap relative to their abil­ will cost more than $1 b1llion, will be sig­ ity to pay than either richer or poorer course in management techniques; but nificantly more comprehensive despite as­ students. a young college student, struggling to surances from Census officials that improve­ make ends meet, cannot take a deduc­ ments have been made. It is indeed time to grant relief to tion for an equivalent course. The former By the Census Bureau's own estimates, one those who need it. is considered to be incurring a "business of every seven Hispanic-Americans was My bill provides direct assistance in expense" whereas the latter is merely missed in 1970, as against one of every 14 meeting the costs of higher education by incurring a "personal expense." I believe Blacks and one of every 50 whites. allowing a tax credit for a portion of ex­ Many of the approximately five mlllion it is unfair that those who need the individuals who were passed over in 1970 penses for tuition, fees, books, supplies, assistance most are ineligible under our have a s.pecial stake in the accuracy of the and equipment. Specifically, a taxpayer present laws. That is why I am introduc­ census. The figures gathered next year will be under my bill could claim a tax credit ing the Harris tuition tax credit bill used not only to apportion Federal, state and of: 100 percent of expenses not exceed­ today.• local voting districts but also to help set ing $200; 75 percent of expenses over guidelines for equal employment opportu­ $200 but not exceeding $500; and 25 per­ nity programs and to determine bow some cent of expenses over $500 but not ex­ TOWN HALL MEETING OF BLACK/ $60 billion in Federal funds for job training, ceeding $1,500. educational assistance and general revenue HISPANIC DEMOCRATIC COALITION sharing wm be dispensed each year. When expenses for tuition, fees, books, Moreover, carrying out the provisions of supplies, and equipment equal or exceed HON. MICKEY LELAND the Federal Voting Rights Aot designed to $1,500, a tax credit of $675 may be ensure minority political participation claimed. OF TEXAS through such means as b111ngual ballots de­ The following table indicates the as­ IN THE HOUSE OF REPRESENTATIVES pends on a precise knowledge of the size of sistance a resident of Virginia attending Tuesday, May 15, 1979 the minority population in a given com­ one of the Commonwealth's public insti­ munity. tutions would receive under my bill: • Mr. LELAND. Mr. Speaker, I would For its part, the Census Bureau says it is like to share with my colleagues a re­ making "special efforts" to oount members cent New York Times article which high­ of mincrities next year, among them the in­ Approxi- Percent of clusion of a place to note Hispanic origin on imate expenses lights the events of the townhall meet­ annual Tax offset by ing of the Black/Hispanic Democratic all of the 160 million forms that will be College expenses 1 credit credit mailed to 90 percent of the nation's house­ Coalition in Houston, Tex. on May 5, holds. and the participation of my colleague, In 1970, only one in five census forms in­ George Mason University. ___ $868 ~517.00 59.6 Mary Washington College ____ 970 542. 50 55.9 Congressman Bos GARCIA, who conducted cluded such a question, and the bureau's Northern Virginia Community a field hearing of the Subcommittee on subsequent figures on Hispanic-American College ______------__ 450 387. 50 86. l Census and Population in Houston at population were estimates projected from University of Virginia ______884 521.00 58.9 that sample. Virginia Polytechnical lnsti- the request of the coalition. tute and State University •• 657 464. 25 70. 7 I commend this article to my col­ Next year, moreover, each of the Englisb­ College of William and Mary. 1, 108 577. 00 52.1 leagues' attention: language forms, the only ones to be malled out, will contain a notice in Spanish advis­ HOUSTON HEARING TOLD OF MEXICAN-AMER­ ing recipients that they can obtain a Span­ 1 For tuition, books, and certain fees. ICAN FEARS ON 1980 CENSUS ish-language cen~us questionnaire in the Although the assistance provided to (By John M. Crewdson) mail by clipping a ccupon and sending it in. those attending the least expensive HousToN, May 6.-Representatives of a No such notice was included on the 1970 schools is greater in terms of a percent­ variety of Mexican-American groups are ex­ form. age of the cost of attending college, the pressing strong fears that next yea.r's nation­ SPANISH-SPEAKING ENUMERATORS assistance to those attending the more wide census will again pass many of them by, with a resulting loss of jobs, federally Households that receive no census form expensive schools is greater in dollar financed programs and, perhaps most impor­ in the mall or do not return one will be vis­ amounts. tant, infiuence at the polls over the decade ited by enumerators. The Census Bureau HIGHER EDUCATION ENROLLMENTS says it is hiring more Spanish-speaking to come. enumerators next year and preparing Span­ In the Eighth Congressional District At a day-long hearing of the House Sub­ committee on Census and Population held ish-language radio and television announce­ of Virginia we have a large number here Friday, Mexican-American spokesmen ments encouraging particiaption in the of students attending schools of higher took issue with much of the Census Bu­ census. education. reau's proposed methodology, includlng its Michael Farrell, a counsel for the census Almost 40,000 students are enrolled in extensive use of mail quest1onna.1res, the subcommittee, noted that in the past enu­ the Northern Virginia Community Col­ difficulty of obtaining Spanish-language merators had been poorly trained and paid lege · and 8,700 students attend George forms, an insufficiency of Spanish-speaking and were fearful of canvassing minority Mason University. Additionally, many enumerators and what was viewed as a lack neighborhoods. He also said he feared that of effort to counter the historic distrust of the public service announcements were likely other students, living in my district, government among minorities. to be broadcast "at 2 o'clock in the morning." attend one of the many fine public and Representative Robert Garcia, a Bronx "We may have a repeat,'' Mr. Farrell said private schools within the Common­ Democrat who is the subcommittee's chair­ on Friday, "We may not have any more re­ wealth or elsewhere in the United States. man, said that Friday's hearing was one of liable information about Hispanics follow­ Furthermore, a large percentage of several to be held in areas "where histort- ing the 1980 census than we did in 1970, and 11354 EXTENSIONS OF REMARKS May 15, 1979 the people most likely to be undercounted ment, and Federal challenges to redis~rict~ng the President wishes it so.... ") The piece is are those who most need the money affected over the past two years have resulted in gains neaded "How to ·slow the Rate o! Infiation" by the undercount." in Hispanic representation on city and coun­ and is crowned by the slogan "A voluntary The subcommittee and the witnesses alike cil governmental bodies. program will work if everyone volunteers." cited the "mail-back" technique as a major BLOCK-BY-BLOCK DATA SOUGHT But it won't. Hardly anyone who bothered shortcoming, pointing out that in several But Choco Meza, an official of the South­ to get out of bed in th~ morning between preliminary tests conducted around the 1971 and 1974 can doubt that mandatory west Voter Registration and Educat ion Proj­ controls did more harm than good. Yet vol­ country fewer than half the homes in poorer ect, told the subcommittee that unless data neighborhoods had filled out and returned untary controls, insofar as they hold down on Hispanic population was troken do~n prices artificially, must in time cause the the forms. block by block it would be useless for redis­ A long string of wi.tnesses echoed the same same shortages and dislocations as the man­ tricting smaller cities and towns. . datory kind. I! everyone volunteers, the effect misgivings: that the complexity of the forms, "We have worked in many counties where especially a longer version that will go to is the same as if the scheme were compulsory, one household in five, was certain to dimin­ the entire city is in one enumeration dis­ and guidelines overnight become indistin­ ish the response, and that it would simply trict," Miss Meza. said, adding that "In our guishable from controls. Thus only an inef­ past experience with reapportionment we fective voluntary regime can hope to suc­ not reach homes in poorer urban or rural have found that even the Department of neighborhoods that were not numbered or ceed-succeed in not making matters worse­ were lived in by more than one family. Justice has had problems with the data pro­ whereas "effective" guidelines, because they one witness, Jose Garcia., told the sub­ vided for some district because there is no so closely resemble mandatory controls, must committee, "In the Southwest, it is not un­ block data." necessarily work the same mischief. common for many households to share a At present, the Census Bureau does ~ot Everyone, as we say, won't volunteer. The single address-you'll find one house in back plan to produce such data for cities with United Rubber Workers Union, which ls populations smaller than 10,000 people.e of the other." . locked in contract talks with Uniroyal, went There is also concern among Hispamc­ to court last Friday to seek a restraining American groups and subcommittee members order against the Council on Wage and Price that many Spanish-speaking families will Stability. The union charged the Council not go to the trouble to obtain a Spanish­ NO MAGIC CURE FOR INFLATION with meddling and said that it would have language form. made a deal already except for threats of Even those families that do make that reprisals from the White House. The Council, effort may find the form inadequate, said HON. RON PAUL for its part, denied it had intervened but Mr. Farrell. There is space to list only seven OF TEXAS added significantly that if the final contract does exceed the allowable standards, "we wm family members, and while only 5 percent of IN THE HOUSE OF REPRESENTATIVES all American families are larger than that, do everything we can to protect the public the figure for Hispanic-Americans is closer to Tuesday, May 15, 1979 interest." The union's motion was dented. 12 percent. Meanwhile, George Meany, patriarch o! the e Mr. PAUL. Mr. Speaker, Barron's edi­ AFL--CIO, has called for an end to the guide­ HISTORIC FEAR OF GOVERNMENT torials are invariably well-argued and lines and a return to full-fiedged coercion, There are other examples of what some based on free-market principle~. The one so that everyone can suffer together. The groups, including the Mexican-American in the May 7 issue is no exception. U.S. Industrial Council, which represents a Legal Defense and Education Fund, view as free-market constituency o! 5,000 corpora­ a cultural bias. Although there is a question In it, Mr. James Grant rightly ~r~ti­ cizes General Motors for an adv~r~ismg tions, has asked that it be included out. devoted to whether a dwelling has electricity But big business, by and large, has beaten and indoor plumbing, there is no way to campaign supporting tl?-e ~dmmistra­ a pa.th to Washington. In February, some 300 indicate whether they are in working order. tion's price and wage gmdelmes. of the nation's largest 500 firms hadn't en­ The second major concern voiced at the Since neither prices nor wages cause dorsed the Council guidelines; by contrast, hearing was the effect upon the census from inflation-inflation is an increase in the today all but 53 have agreed to comply. In the historic fear of government among mi­ supply of money and cred~t. which general, the guidelines ask that firms hold nority residents, a fear that is especially causes a rise in the general price level­ their price increases to half a percentage prevalent among the estimated six million to GM is wrong to support the guidelines. point below the average annual increase in eight million undocumented aliens who are 1976-77, at the pain of public rebuke or the living in this country illegally. Guidelines or outright controls cause loss of government contracts. I! "uncontrol­ Apart from the assumption that many even more damage than plain inflation, lable" costs make that impossible, a company illegal residents simply do not want to be since they repress inflation, where it has may seek the alternative profits test, whlch counted, the Census Bureau's effort to find an even worse effect than open inflation. restrains margins this year to the best two them may be hampered by the fact that in Big business' record of supporting f~ee of the past three fiscal years. In the case the summer, when much of the enumeration enterprise, rather than Governmen~ m­ of Gira.rd Co., for example, parent of Girard will take place, many such families are en­ terventions that help large corporations, Trust Bank in Philadelphia, the rules have gaged in migratory farm labor and have no obliged it to limit its future dividend bikes fixed address. is not an encouraging one. because it is bumping up against the Coun­ Ben T. Reyes, a Texas State Senator who Barron's is correct in criticizing GM's cil's allowable margins for financial institu­ appeared on Friday, told the subcommittee ad campaign, and especially the inflation tions. Sears Roebuck, which has been losing that, in h is view, there was some ground for and guidelines, which are both wholly sales for eight months, basked in national concern among Mexican-Americans about co­ owned subsidiaries of the Federal publicity while bowing to a 5% cut in its operating with the census. In the census pre­ Government. catalogue prices. As for wages, the Council test in Austin, Mr. Reyes said, 50 to 60 un­ I would like to call this editorial, and asks that they be held to a rise of 7% an­ documented aliens who had been interviewed nually, which, infiatlon rips along !or the by census takers were seized the next day by also the excellent suggestion it makes rest of the year at the same rate as in the the Immigration and Naturalization Service. for bureaucrats' life savings, to my col­ first three months, implies a loss o! real "It may be a coincidence," Mr. Reyes said, leagues attention: income of 6% in 1979. "but we don't feel like it was.'' THE 7-PERCENT SOLUTION: THERE'S No MAGIC That fact alone would explain the lack o! Dr. Mark Ferber, a Census official traveling POTION To CURE INFLATION union volunteers and the ominous growth of with the subcommittee, said later that he (By James Grant) labor unrest. With each month through March, the number of strikes this year has believed the appearance of the immigration General Motors, which knows a thing or service in Austin on the heels of the Census increased, from 301 in January to 326 in two about making cars and trucks, lately has February to 447 in March-in all, 1,074 as Bureau had been a coincidence. He said his begun to manufacture essays !or magazines. agency had asked service to stop such sweeps against 751 in the same span in 1978. Like This is an odd bit of diversification, !or the the AFL-CIO, which has filed suit against in other areas for "a couple of months" after essay is a hand-made product which has the census takers had departed. the Council on the ground that the guide­ never been satisfactorily mass-produced. It lines are not at all voluntary but are extra­ Dr. Ferber said he was sure there had no.t is true that the literary market ls unregu­ been any collaboration between the two legal and compulsory, the United Auto agencies, and he noted that the divulging lated and that labor is abundant, 1! some­ Workers Union rejects out of hand the 7% times surly and raffish, but the trade is hard solution. So do growing numbers of white of census information by a bureau employee, and grudging with money. In any case, Gen­ even to another Federal agency, was a felony. collar workers who are changing jobs to get The most serious long-term consequence of eral Motors recently published its views on the raise that their former company volun­ the Administration's voluntary wage and teered not to give them. the undercounting of minorities may well price guidelines. The burden o! the essay, be diminished participation by .them in the Plainly, then, 1! the Council ls toothless, political process. which evidently was drafted by press agents, its gums are like a vise. A case in point ts revised by clergymen and polished by lawyers aluminum, which is an interesting study be­ Under the Voting Rights Act, any change in the single hope or avoiding offense to any in voting districts, made since November cause it is an industry ostensibly rigged member of either side of the First Family, from Pittsburgh. I! so, ·the argument runs, 1972 must be approved by the Justice Depart- is that the company will play ball. ("Because why not do the job from Washington, in the May 15, 1979 EXTENSIONS OF REMARKS 11355 public interest? Thus, the Council has pre­ voting unconscionable deficits, and that this Installment loans: vailed on Alcoa to trim a four-cent rise in is the cause of inflation. First National Bank of Dallas____ $13, 800 the price of primary ingot by a penny, to 581/:z La.st week, on the eve of the Conservative Patman Federal Credit Union..__ 5, 800 cents a pound. Overseas, meanwhile, the victory in control-bound Brita.in, the Finan­ DCASR Dallas Federal Credit white metal was heading toward 70 cents. cial Times printed a light-hearted letter from Union (Automobile) ------500 Result: a heavy outflow of aluminum scrap an Oxford don named Dr. P. J. Cuff. The let­ Open Charge Accounts (balances)_ 1, 100 to foreign markets, where the return is high­ ter suggested that government ministers est. Funds which might have otherwise gone should be made to put their assets into Total liabilities ------130, 000 to expand domestic smelting capacity, now bonds, which they would hold throughout running full-bore, are not available. Natu­ their term in office. In a. time of runaway NET WORTH rally, the trouble is more complicated than interest rates and soaring prices, of course. Total assets ------174, 700 that: price controls on energy, as well as the bonds would suffer appa.111ng market Total liabilities ------130, 000 environmental opposition, have also played erosion, which would come out o! the minis­ hob. But eventually, comments one close ob­ terial hide. We laughed before we saw in Total net worth______44, 700 server, "shortages will emerge, breaking the this jest the inspired reform it is. Inflation, guidelines and driving domestic prices . . . to anyone in Washington with a !at income 1979 INCOME STATEMENT above the levels which (would probably have and a house in the District or one of its Congressional salary ------57,500 prevailed in the Council's absence.]" neighboring boom towns, is like the beat o! Rental frcm Dallas residence ______the rain on a well-shingled roof. What better 4,800 Guidelines, in fact, exacerbate nearly all Interest from note receivable ______800 the evils that inspired them in the first place. prod !or a reduction in spending than !or the Honorariums to date ______guilty parties to see their life's savings go up 150 "The great mass of those who put their trust Interest and dividends ______100 in the traditional order," wrote Thomas Mann in smoke? What surer road to the elusive balanced budget.e of the German inflation of 1919-23, "the in­ 63,350 nocent and the unworldly, all those who do Total income ------productive and useful work but don't know how to manipulate money . . . all these are • doomed to suffer." Inflation makes cynics; FORD BLASTS BUSINESSMEN guidelines. in failing, as they must fa.11, make CONGRESSMAN FROST FILES ADDI­ them more bitter. Inflation stirs jealousies; TIONAL PERSONAL FINANCIAL IN­ guidelines, in pillorying an occasional scape­ FORMATION HON. BRUCE F. VENTO goat, stir them harder. Inflation distorts prices; guidelines, in trying to suppress that OF MINNESOTA distortion, make a bad thing worse. This is HON. MARTIN FROST IN THE HOUSE OF REPRESENTATIVES the fundamental economic objection to any Tuesday, May 15, 1979 kind of controls-that prices, which have a OF TEXAS lot to say, are throttled as bearers of bad IN THE HOUSE OF REPRESENTATIVES • Mr. VENTO. Mr. Speaker, as is widely news. "It might be helpful," commented known, Henry Ford II chairman of the Walter Wriston, chairman of Citicorp, last Tuesday, May 15, 1979 Ford Motor Co., is relinquishing his posi­ week, "to remember that prices and wages • Mr. FROST. Mr. Speaker, I am today tion of leadership in this giant enter­ represent an essential form of economic speech and that money is just another form making public a balance sheet and in­ prise. of information." In a changing economy. come statement showing asse~. liabili­ Mr. Ford, in a reflective frame of mind, prices must change, and some must pierce a ties, and net worth for myself and my recently reviewed for a management federally sanctioned average. But for the wife, Valerie. The information contained conference at the University of Chicago Council to make an exception to the rule is therein is valid through today, May 15, some of what he believes are the short­ to risk the wrath of those not similarly fa­ 1979. comings of capitalism and of business­ vored. Not to make the exception is to guar­ I am releasing the balance sheet and men. antee a shortage, which in turn will set off a chain of other dislocations. The Council's income statement because the standard What he has to say is constructive and only hope is a timely recession and the dig­ financial disclosure required under the deserves widespread attention. I am nity of a quiet retreat. Falling that dispensa­ Ethics in Government Act of 1978 is not pleased to include in the CONGRESSIONAL tion, pressure will build for the government as informative as I would like to be with RECORD at this point an article from the to "do something." Time and again the Ad­ my constituency. Chicago Sun-Times which was reprinted ministration has shunned mandatory con­ in the St. Paul Dispatch, April 27, 1979: trols; yet as recently as Sept. 19, 1977, it The complete disclosure follows: shunned guidelines, too-"It is our judg­ BALANCE SHEET: MARTIN AND VALERIE FROST FORD BLASTS BUSINESSMEN ment," Stuart Eizenstat, assistant to the (As OF MAY 15, 1979) CHICAGo.-"The great majority o! capital­ President for domestic affairs, said in a letter ASSETS ism's problems today retlect the !allure of to Sen. John Tower (R., Texas). "that a pro­ businessmen to take politics and new social House and lot, 1910 Kessler Parkway, gram under which the Federal government Dallas, Tex ______movements as seriously as they should have," promulgates formal numerical guidelines $60,000 according to Henry Ford II. such as those of the early 1960s would not House and lot, 8508 Riverside Road, Speaking at a. University o! Chica.go Busi­ be a desirable or effective remedy for infla­ Alexandria, Va.. ------­ 85,000 ness School management conference here tion." Note receivable from Shaw's o! San Thursday, Ford added: Off and on now for 4,000 yea.rs, so a new Antonio, Tex. ------­ 13,100 "Often, businessmen have refused to re­ historical survey relates (Forty Centuries of Home furnishings and other per- spond to what's valid in the critics' case. Wage and Price Controls, by Robert L. sonal effects ------­ 10,000 With the benefit of hindsight, businessmen Schuettinger and Ea.monn F. Butler, Heritage Savings, Wright Patman Congres- should have tried to respond sooner and more Foundation, Washington. D.C.). lnflatlon­ sional Federal Credit Union ______1,000 positively to broad social demands for pol­ ridden governments have been rounding up Checking account ------2,000 lution controls-which 1s one area where the usual suspects. They have hanged and market forces aren't sufficient and where jailed them !or keeping a black market, but Automobiles: some government regulation clearly is the punishments have served no purpose ex­ 1976 Ford Granada ______2, 000 1971 AMC Gremlin ______necernary." cept to gratify the rulers who meted them 700 Ford said his own industry should have out. The book ls morbid reading, because responded sooner to the growing demand !or the same pageant ls futilely played out, gen­ Total ------2,700 smaller, more fuel-efficient cars. eration after generation. Now comes the "But, though we did introduce the sub­ Council, another chapter in the history o! Stocks and bonds: compact Falcon in the early 19605, we didn't an unborn historian, who will amuse himsel! 1 share mM______300 really make an all-out effort in the sub­ a. hundred years from now to think that eco­ 12 shares Ensearch______300 compact field until the 1970s," when the nomic medicine men reigned in a nation that U.S. Savings Bonds______300 Pinto was introduced. could create an IBM and split it 4-!or-1. I! Total ------900 The Ford Motor Co. chairman pointed out inflation is a. lie. then controls are the cover­ that his company actually anticipated the up. The deceit ls that the nation cannot pay Total assets ______174,700 demand for safer cars by offering seat belts its bills but prints the money to finance as an option as early as 1956. them. In this ancient process the Council is "Though we advertised the option exten­ powerless. For a while, some prices will not LIABILITIES sively, we had trouble selling those seat be raised, or will rise more slowly than they Mortgages: belts," he said. "The public didn't want to otherwise would, but monetary forces will Trinity Mortgage Co .. of Dallas spend the extra. money on them. And so out. It is the simple truth that the Federal (Dallas residence) ------34, 200 we stopped trying to push the safety belt. Reserve Boa.rd has been ma.king too much National Homes Acceptance Corp. With the benefit of hindsight, it is my per­ money and that Congress for years has been (Alexandria. residence) ------74, 600 sonal conviction that that was a mistake. 113'56 CONGRESSIONAL RECORD-HOUSE May 16, 1979 We owed it both to ourselves and to the [From the National Home Review) 6.6 percent--a full percentage point higher public to work harder at marketing safety AT HOME than the level prevailing now. A giant like belts and other safety features. General Motors, supposedly impervious to "Had we done so in the decade following (By M. Stanton Evans) economic problems, has seen its margin cut 1956, we might have succeeded ultimately One problem with discussion of economic almost in half-from 10.3 percent in 1965 in converting the public to the advantages issues in this country is rt.hat so much of it to 5.5 percent in 1978. For American busi­ of safer cars, and at the same time we might occurs against a backdrop of complete mis­ ness as a whole, profits fell from 6.3 percent have avoided many of the regulations with information. Take, for instance, the recent of Gross National Product in 1965 to 3.2 which we and our customers must presently outcry a.bout the rise of corporate profi,ts. percent in 1976. deal. We also, might have avoided being Opinion surveys reveal widespread misunder­ (Even these facts don't tell the whole branded as merchants of unsafe products." standing aibout the size and nature of prof­ story. Approximately one-third of reported Business representatives must stop using its, with substantial ma.joritles in some cases profits in the fourth quarter of 1978 were bombast instead of articulate response t.o believing profit margins a.re as high as 30% inventory profit&-reflecting simply the in­ anti-business ideologists, said Ford. "Cap­ or 45 % of sales. Such notions, which a.re to­ fiationary difference between the price at italists who were smart enough to make tally at variance with the facts, obviously which an item was acquired in the past and America the richest and most powerful na­ aid the efforts of Ralph Nader and others to the price for which it sells today.) tion the world has ever known" have re­ stir ia.ntagonism toward American business. An additional irony in this debate is that sponded to "these critics' cogent and artic~­ These misunderstandings, be it said, are the people with the biggest stake in cor­ late arguments with inarticulate grunts" on encouraged by the kind of media. play some­ porate profitabUlty are not the managers, many occasions, he added. times accorded data on profits. A couple of but the workers. It is a little-noted fa.ct of "We have often been reduced to debating representative headlines on recent profits economic life that American workers, to a these individuals with an arsenal of concepts statistics tell us: "Profits Soared a.t a 44% large and increasing degree, are the owners that has been out of date for decades," Ford Rate a.t End of '78" (Washington Post), and of American \)usiness, and that their future said. "The cause of capitalism is the cause of "Surge In Firms' Profits Endangers Wage well-being is directly tied to the question of the public interest. Our failure to defend this Curb" (Washington Star). From headlines whether business can make a profit. This assertion is certainly a shortcoming that of this sort, the impression is inevitably con­ ownership has been acquired through em­ ought to be dealt with. veyed tha.t U.S. corporations a.re reaping ployee pension funds, which have grown "Today, one of capitalism's greatest short­ enormous gains a.t the expense o! consumers enormously in recent years and which are, comings is its inabllity to make a better case and/or workers. Nothing could be further for the most part, invested in the stock for itself-to boast of the high quality of the from the truth. market. conditions in its factories, the excellence of Consider tha.t claim of a. 44% profit The phenomenon of worker-ownership has its products, the fairness of its pricing, the "rate"-which could easily lead the reader been described by economist Peter Drucker­ value of its contribution to social life." to conclude that U.S. firms had profit mar­ first in a lengthy article in The Public In­ Capitalism has survived for one reason­ gins in this range. In fa.ct, the figure re­ terest, then in a. book, The Unseen Revolu­ because it worked, Ford said. "It is not per­ ferred to ls not a profit margin, but a rate of tion. Drucker observes that, since the birth fect, it is not free from sin, but it has increase, which is something altogether dif­ of the corporate pension fund idea in 1950, worked. It ls clearly something that all busi­ ferent. Thus, if I had a $1 profit last year these programs have proliferated in all di­ nessmen can be proud of. We must learn and a $2 profit this year, my ra.te of increase rections until they have become the dom­ to convey that pride to the American is 100%, but my profit margin (or return on inant factor in the market. As of 1976, he people."e investment) is likely to be microscopic. notes, pension funds owned about 35 percent It also turns out that the 44% figure blaz­ of the common stock of publicly held cor­ oned in the headlines is not even .a.n accurate porations. By 1985, he estimates, the pro­ ARE PROFITS TOO HIGH? statement of the rate of increase. Profit had portion will rise to between 50 percent and slumped in the third quarter of '78, then re­ 60 percent. Even as things stand, the larger covered in the fourth quarter, growing by funds among them own sufficient shares to HON. RON PAUL 9.7 %. If this rate of improvement had been control the one thousand largest corporations. OF TEXAS maintained throughout the year, then the Company payments to these funds are IN THE HOUSE OF REPRESENTATIVES annual rate of increase would have been taken out of before-tax profits (the kind 44.8%. But since the rate did not prevail that have been causing all the recent up­ Tuesday, May 15, 1979 throughout the year, the number is meanlng­ roar), and the long_term ab111ty of the econ­ le55. The actual rate o! increase for all of omy to sustain the funds depends on profit •Mr. PAUL. Mr. Speaker, are profits '1978 was 26.4%. levels, also. In a sample year and industry too high? As a necessary antidote to And remember, all these numbers are (1973, chemicals), Drucker finds, pension some of the publicity about profits, I simply rates of increase, in terms of before­ funds took 35 percent of pre-tax profits, fed­ would like to bring an excellent essay tax dollar profits. By themselves, they tell eral taxes another 32 percent, and state and from National Review Bulletin to my col­ us nothing about profit margins in 1978-a local taxes another 5 percent. In labor­ leagues' attention. figure which is readily available but blithely lntensive industries (such as construction), Written by M. Stanton Evans, the ar­ ignored in the stories. If we take a look at the pension-fund percentage is even higher. ticle demonstrates how necessary prof­ this statistic, we discover the average profit In many industries, indeed, "well over halt margin for U.S. companies in the fourth of all total profits will belong to employees' its are, and why they are not too high. quarter of 1978 was exactly 5.5 percent, up pension funds." In fact, they are too low. from 5.1 percent a year before. In other In the long run, of course, the abillty of The workers of our Nation, the artic­ words, the profit hike that is ballyhooed by these funds to meet their obligations will ulate Mr. Evans points out, need strong the Post as a "44 percent rate" was in fact depend on cash-flow considerations, which profitability more than the managers do. an increase of 4/lOs of 1 percent of sales. means dividends, and dividends come only It is past time that the Government These actual margin figures, moreover, from profits and can be robust only 1! the altered its anti-profits tax and infiation business in question ls thriving. Any way represent a long-term decline in profit levels. you slice it, American workers have a vested policies, for the sake of our whole so­ A decade ago, manufacturing firms in the interest in bigger, rather than smaller, busi­ ciety. United States had an average margin of ness profi ts.e HOUSE OF REPRESENTATIVES-Wednesday, May 16, 1979

The House met at 10 a.m. Father, we open today's session by giv­ in pursuit of Your perfect plan for all The SPEAKER. The prayer will be of­ ing praise to Your name. This session. mankind. fered by our inhouse guest chaplain, Rev. as did the thousands of sessions before We ask that when this day is over, that Charles Mallon, St. Matthias Church, it, starts with a prayer of recognition to Lanham, Md. You will speak well of us, that You will Rev. Charles Mallon offered the follow­ Your power and domain. prajse us and bless us for having been ing prayer: We praise You and bless You for Your faithful servants in the pursuit of this ever presence in both our personal lives Your perfect plan. Praise you servants of the Lord, praise as well as in our public trusts. Anoint each of us then with the like­ the name of the Lord. Blessed be the ness of Your Son, that we might give name of the Lord both now and forever.­ We praise Your name and bless it to­ fitting praise and blessing to Your name. Psalms 113. day and every day as we come together Amen.

D This symbol represents the time of day during the House Proceedings, e.g., D 1407 is 2:07 p.m. • This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor.