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Home , George Washington Carver, William Randolph Hearst

4080 CONGRESSIONAL RECORD-SENATE APRIL 6 the Stratton bill, H. R. 2910, to permit the MESSAGES FROM THE PRESIDENT­ PETITIONS AND MEMORIALS entrance of 100,000 displaced persons to the APPROVAL OF BILL United States each year over a 4-year period; Petitions, etc., were 1::\id before the' to the Committee on the Judiciary. Messages in writing from the Presi­ Senate by the President pro tempore and 1725. By Mr. SMITH of Wisconsin: Resolu­ dent of the United·States were commu­ referred as indicated: tion by Wisconsin Conservation Commission, nicated to the Senate by Mr. Miller, one A joint resolution of t:he Legislature of opposing House Joint Resolution 78 and any of his secretaries, and he announced that the State of ; to the Committee or all subsequent . bills or resolutions of a on April 3, 1948, the President had ap­ on Interstate and .Foreign Commerce: similar. nature designed to create additional proved and signed the act

However, the world wheat situation has Copies of the reports concerning thi~J 1ng more than three civilians for each five greatly improved over that of )ast No· legislation frotn the Department of Agri­ tnen in uniform in February 1948, as com­ pared with one civilian to evQry five men in vember when the legislation was en­ culture and the Department of State are uniform in June of 1945. Of the net decrease acted. Whereas last year France pro· attached hereto and made a part of this of 1,797,388 civilian employees between June duced only about 50 percent as much as report. of 1945 and February of 1948, 869,154 were it needed, it now seems apparent that The PRESIDENT pro tempore. With• ·so-called industrial employees and 928,234 despite acreage somewhat below prewar,. out objection, the report w111 be received were classified employees.) that country will raise almost all the and the bill will be placed on the cal· - According to monthly personnel reports wheat it will need. Other countries, endar. . submitted to the Joint Committee on Reduc­ normally nonexporting, . are known to tion of Nonessential Federal E~penditures, PRINTING OF ADDITIONAL COPIES OF the total Federal personnel for February in­ have recovered from war damage to a REPORT NO. 950, RELATING TO INVES­ creased 11,932 from the January total of great extent and expect to produce much TIGATION OF IMMIGRATION SYSTEM 2,000,511 to the February total of 2,012,443. larger crops of wheat this year. At th~ (See table III.) same time the main exporting countries Mr. WILEY, from the Committee on Exclusive of the National Military Estab­ of Canada, Australia, Argentina, Russia, the Judiciary, reported an. original reso­ lishment, there was an increase of 9,618 from and the United States have experienced lution ·e expected to result National Military Establishment decreased uniform as it employed at its wartime peak in . 985 from the January figure of 171,465 to the in undesirable fluctuations. 1945. Prior to current revitalization of the February figure of 170,507. Nation's armed might, the combined armed The committee believes the existence The Department of the Army reported a of this artificial element in the wheat forces of the United States in February 1948 decrease of 1,720 civilian employees overseas, market may pena1ize the American were employing 8 civ111ans to every 14 men from the January figure of 127,307 to the farmer who has just produced a. record 1n uniform, as compared with 2 civilians for February figure of 126,406. every 12 men in uniform in June 1945. In wheat ·crop, thereby greatly relieving The Navy Department decreased its over­ February the Department of the Army and seas employment 57, from the January figure starvation and suffering throughout the the. Air Forces , comb1n.ed employed nearly world, and who is now attempting to pro­ five civilians to every nine men 1n uniform, of 4~,158 to the February figure of 44,101. duce another crop of record proportions. as compared with nearly two civ111ans to Industrial employment Therefore, the committee urges immedi· every eight men in uniform in June of 1945. Total industrial employment during the ate and favorable action on the bill. · The· Department of the Navy was employ- month of February increased 575 fr.om tha 4086 CONQRESSIONAL RECORD-SENATE APRlL 6

January total of 550,556 to the February total IJ'ABLE I.-Federal personne_z inside conttnen.: TABLE U.-Federal personnel outside conti­ of 551,131. (See table IV.) tal United States employed by executivtJ nental United States employed by tlie . The departments and agencies, exclusive agencies during · February 1948, and com• executive agencies during February 1948, of the National Military Establishment, in­ parison with January 1948..;;....conttnued and comparison with January 1948-Gon­ creased their industrial employment 183 tinued from the January figure of 20,102 to the Feb· Increas$ Janu- Febru- (+)or ruary figure of 20,285. Department or agency ary ary decrease Increase The National Military Establishment in­ Department or agency Janu- Febru· (+)or ------1----- _<_-)_ ary ary decrease ' creased its total industrial employment 892 tNDEPENDENT AGENCIES­ from the January total of 530,454 to"the Feb· (-) continued ------·1------ruary figure of ,530,846. Housing and Home Fi INDEPENDENT AGENCIES The Department of •the Army decreased its nance Agency __ ------­ 11,914 11,783 -131 American Battle Manu- industrial employment 64 during the month Indian Claims Commii- ments Commission ______sion •• ______------11 99 100 +1 of February; the Army increased 1,656 within Interstate Commerce 11 ------Atomic Energy Commis· continental United States while the overseas Commission ______sian .• ------__ ------3 2,263 2,257 -6 Civil Aeronautics Board ... 19 3 ------industrial employment for the Army de­ Maritime Commission .•••• 6, 774 6,802 +28 19 ••••• : ••• National Advisory Com· bivil Service Commission_ 5 5 ------_creased 1,720. mittee for Aeronautics •.. Export-Import Bank of National Archives ______6,172 6,249 +77 2 The Department of the Navy increased its 330 335 +IS 2 ------National Capital Hous4J_g - Fe'Xe~a~ina~:municatfons- industrial employment 456 from the Jan­ Commission ______36 37 uary figure of 237,217 to the February figure Authority------­ 290 284 -6 +1 National Capital Park and Federal Deposit Insurance of 237,673. Corporation ______3 3 .:-•••••••• Planning Commission .•. 25 24 -1 Federal Security Agency __ The term "industrial employees" as used National Gallery of Art. ... 318 317 -1 1, 403 1,'399 -4 Federal Works Agency ____ 323 351 +28 by the committee refers to unskilled,· semi­ NationBoard.al ____ Labor______Relations _ Housing and Home Fi- 957 1,130 +173 nance Agency ______skilled, skilled, and supervisory e~ployees National Mediation Board. 39 42 +3 paid by the Federal Government who are 113 108 -5 Maritime Commission _____ 147 146 -1 Office of the Housing Ex­ National 'Labor Relations working on construction -proje_cts such as pediter __ ------­ 4, 608 Board ______4,608 ------4 +1 airfields and roads, and in shipyards and Office of Selective Service Office of the Housing arsenals. It does not include maintenance Records. _------649 665 +16 Expediter ____ . ____ . ____ . Panama CanaL ______543 542 -1 27 27 ------· and custodial employees. Office of Selective Service Philippine War Damage Records ______14 15 Commission. ______+2 Panama CanaL ______+1 TABLE I.-Federal personnel inside conti­ Railroad Retirement 24,314 24,190 -124 Philippi~e _War Damage nental United States employed by execu- · Board.:. ______2, 796 2, 769 -zr Commission ______Reconstruction- Finance 567 562 -5 tive agencies during February 1948, and Corporation ______Reconstruction Finance comparison with January 1948 6, 012 5, 857 -155 Corporation ______41 26 Securitie~ ~nd Exchange -liS CommJsswn __.______Sinitbsonian Institution .•. 6 6 --·---~-- 1, 086 1,123 +37 Veterans' Administration •• -20 Increase Smithsonian Institution .•. - 507 512 +5 ~ Tariff Commission ______224 223 -1 Total, excluQing Na· ~ Department or agency Janu- Febru- (+)or tional Military Es- ary ary decrease Tax. States Court ______of the United _ tablishment ______+802 . (-) 126 125 -1 54,504 55,061 { Tennessee Valley Author- Net increase, exclud- -245 ------·1------ity------14,144 14,111 -33 ing National Mili· tary Establish: EXECUTIVE DEPARTMENTS Veterans' Administratiqn. 20!\, 464 205,026 -1,438 ment______(EXCEPT NATIONAL MILl• ------+557 TARY ESTABLlSHMENT) Total, excluding Na· NATIONAL MILITARY ESTAB· tiona!_ Military '> {+11 419 LISHMENT Agriculture ••••••. ------68,377 68,427 +50 E s tab llshm ~nt.. ... 1, 111,6311, 120,§9~ _ • Commerce ••••••••••••••••• 34,712 35,482 +770 2 358 Department at-the Army__ 127,307 126,406 -901 Jnterior .••••.•••••••••••••. 42,064 42,404 +340 Net increase, exclud· ...... ___._,- Department of the Navy__ 44,158 44,_101 =57 · Total,includingNa· ------Justice. __ --······-····-~-- 25,480 25,754 +274 ing National Mil- Labor_----········--·-···- 4,469 4, 479 +10 itary Establish- tion!11 Military Es- . { _ ment .. ______---~----- ••••••••• +9, 061 tabhshment. ______225,969 225,568 .1+• 203 Post Office .•• ------~--- 463,566 470,293 +6, 727 802 State. __ . . --···--····-···--- 7,401 7, 496 +95 NATIONAJ, MILITARY Net decrease, includ- . Treasury .••••. : ...•.•••••• 84,717 87, 216 +2,499 ESTABLISHMENT ing National Mili· tary Establish· EXECUTIVE OFFICE 011' Office of Secretary of De-, ment ______------401 THE PRESIDENT fense .. _------594 67-5 +81 White House Office ______?.22 220 .-2 Department of the Army __ 254,078 255, 798 +1, 720 TABLE III.-Consolidated table of Federal per­ Bureau of the Budget._._- 601 603 +2 Department of the Air - sonnel inside and outside continental Executive Mansion and Force______112,777 113,680 +903 United States employed by the executive Grounds .... ------110 102 -8 Department of the Navy-- 295, 462 296,030 ~ National Security Coun- agencies during February 1948, and com­ cilt ______------10 11 +1 Total, including Na- parison with January 1948 National Security Re· tional Military {+14, 691 sources Board ______---- 73 84 +11 Establishment_____ 1,774,542 1, 786,875 _ ,· Council of Economic Ad· 2 358 Increase Janu- Febru- (+)or visers _____ ------58 54 -4 Net increase , includ­ Department or agency Office of Government Re- ary ary ·decrease ing National Mil­ (-) ports. _____ ---.------19 18 -1 itary Establish- ment______------+12, 333 ------1------EMERGENCY WAR EXECUTIVE DEPARTMENTS AGENCIES (EXCEPW NATIONAL MILl- 1 Exclusive of personnel of the Central Intelligence Office of Defense Trans- Agency. TARY ESTABLISHMENT) 42 2 Agriculture ______portation . .. ------·; ··-- 41 -1 Excludes 1,226 employees of Howard University and Commerce ______70,152 70,144 -8 99 employees of Columbia Institution for the Deaf, 37,371 38,194 +823 POSTWAR AGENCIES pending decision of the Bureau of the Budget on their Int erior-~- --- ______•.• _ 46,810 47,214 +404 Philippine Alien Property status. Justice. __ ------···- 25,899 26,175 +276 Administration ______Labor_------4,546 4,556 +10 +1 TABLE H.-Federal personnel outside conti­ War Assets Administra- 465,048 471,868 +6, 820 tion. _------29,125 28,839 -286 nental United States employed by execu­ ~:fe~~~~======. 20,854 21,470 +616 tive agencies during February 1948, and Tre as ury ------~ --- 85,306 87,839 +2,533 Th'DEPENDENT AGENCIES comparison with January 1948 EXECUTIVE OFFICE OF THE American Battle Manu-· PRESIDENT ments Commission ______White House Office ______222 220 -2 Commis- 3 ------Increase Bureau of the Budget. ____ Atomicsian ______Energy______601 603 +2 4, 876 4,944 +68 Department or agency Janu- Febru- (+)or Executive Mansion and Civil Aeronautics Board ___ 565 569 +4 ary ary decrease · Grounds ______110 102 -8 Civil Service Commission_ 3, 873 4, 007 +134 (-) NationciJt ______al Security______Coun-_____ Export-Import Bank of 10 11 +1 Washington ______------111 112 National Security Re- +1 EXECUTIVE DEPARTMENTS sources Board ______Federal Communications (EXCEPT NATIONAL MIL· • 73 84 +11 Commission ______: 1, 306 1, 322 +16 ITA RY ESTABLISHMENT) ' 'Council of Economic Ad· Federal Deposit Insurance visers ...•. ---_------58 54 -4 Corporation ______----- 1,144 1,148 +4 Agriculture ______••••••. 1, 775 1, 717 - -58 Office of Government Re- Federal Mediation and Commerce .•.••••....••.••• 2, 659 2, 712 +53 ports. _____ .------19 18 -1 Conciliation Service __ ___ 368 367 -1 Interior---·-··· ______._._ 4; 746 4,810 +64 Commis- 419 421 +2 EMERGENCY WAR Federalsian ______Power______Justice .• _------AGENCIES 795 793 -2 PostLabor Office_- ---·-····------______77 77 ------Federal Security Agency: _ 31,426 2 31,495 +69 1, 482 1,575 +93 Office of Defense Trans- Federal Trade Oommis- State ___ • -···•------.••.••• 13,453 13,974 +521 portation. --.• _. --... -·-. 42 41 -1 sian ______561 559 -2 Treasury------­ 589 623 +34 POSTWAR AGENCIES Federal Works Agency ___ _ 22,360 22,226 -134 POSTJYAR AGENCIES Philippine Alien Property Qcneral Accounting Office. 9, 353 -24 9, 377 Philippine Allen Property ' Administration______171 Government Printing Administration ______War Assets Administra· 171 ------Office ______7, 485 169 168 -1 7,398 -87 War Assets Administra· tion .. ------29, 588 :29, 28/i -303 Footnotes at end of table. tion .•••••••••••••••••••• 463 446 -11 1 See footnote 1 in Table I. 1948 _CONGRESSIONAL RECORD-SENATE . -4087

TABLE !!I.--consolidated table of Federal per­ TABLE m ...... :.ConsoUdated table of Federal per­ TABLE IV.-Industrial employees of the Fed­ sonnel inside and outside continental sonnel inside and outside continental eral Government inside and outside con­ United States employed by the executive United States employed by the executive tinental United States employed by execu­ agencies during February 1948, -and com­ agencies during February 1948, and com­ tive agencies during February 1948, and parison with January 1948-Continued parison · with January 1984-Continued comparison with ·January 1948

Increase Increase Increase Janu- Febru- Janu- Department or agency <+>or Department or agency Janu- Febru- <+>or Department or agency Febru- <+>or ary ary decrease arY ary decrease ary ary decrease (-) (-) (-) ------INDEPENDENT AGENCIES INDEPENDENT AGENCIES- EXECUTIVE DEPARTMENTS continued (EXCEPT NATIONAL MILl· American .Battle Monu- T.ARY ESTABLISHMENT) ments Commission ______102 103 +1 Philippine War Damage Atomic Energy Commis- Commission ______574 571 -3 Commerce. ___ ------__ 1,061 1,165 +104 Interior _____ ------5,110 sion_ ------f,879 '· 947 +68 RailroadBoard ______Retirement______State. ______5,260 +150 Civil Aeronautics Board ___ 584 588 +4 2, 796 2,769 -27 358 367 +9 Civil Service Commission_ 8,878 4,012 +134 Reconstruction Finance Treasury--'------3, 677 3, 671 -6 Export-Import Bank of Corporation ______6,053 5,883 -170 Washington ______113 114 +1 Securities and ]{xchange INDEPENDENT AGENCIES Federal Communications Commission ______1,086 1,123 Commission ______+37 1,342 1,359 - +17 Smithsonian Institution. __ 513 518 +5 Atomic Energy Commis- Federal Deposit Insurance Tariff Commil>sion ______224 223 -1 sion __ ------268 268 Corporation ______1,147 1,151 . +4 Tax Court of the United Housing and Home Fi------Federal Mediation and States ______------126 125 -1 nance Agency ______3 2 • -1 Conciliation Service _____ . 368 367 -1 Tennessee Valley Author- Panama CanaL ______2,153 2,148 -5 Federal Power Commis- ity------14,144 14,111 -33 Tennessee Valley Author- sion __ ------795 793 -2 Veterans' Aclm.iJ?.istration .. 208,084 206,626 -1,458 ity------7,472 7,404 -68 Federal Security Agency __ 32,829 2 32,894 +65 ------Federal Trade Commis- Total, excludingNa- Total, excluding Na- --- sion ___ ------561 559 -2 tiona! Military Es- tiona! Military Es- Federal Works Agency ____ 22,683 22,577.. -106 tablishment______1,166,135 1, 175,753 {+12, 132 tablishment. ______20,102 20,285 1 ~ +263 General Accounting Office. 9,377 9,353 -24 Net increase, 11xclud- -2,514 Net increase, exclud- l . -80 Government Printing Of- ing National Mili- ing National Mili- fice_ : ___ --~ ______7,485 7,398 -87 tary Establish- tary Establishment. +183 Housing and Home Fi- ment. _------+9,618 ------nanee Agency______11,953 11,825 -128 ------NATIONAL MILITARY Indian Claims Commis- NATIONAL MILITARY ESTABLISHMENT sion ___ ------11 11 ------ESTABLISH¥ENT Interstate Commerce Department of the Army: Commission ______2,263 2,257 -6 ~ Office of Secretary of De- Inside continental Maritime Commission __ ___ 6, 921 6,048 +27 fense. _------594 675 +81 United States ______196,352 198,.008 +1, 656 National Advisory Com- Department of the Army: Outside continental mittee for Aeronautics ••• 6,172 6,249 +77 Inside continental United States ______96,885 95,165 -1,720 National Archives ______330 335 +5 United States_------254,078 255,798 +1,720 Department of the Navy __ 237,217 237,673 +456 · National Capital Housing Outside continental ------Authority ____ ------290 284 -6 United States ______127,307 126,406 901 Total, including Na- National Ca8ital Park and tional Military Es- Planning ommission.•• 25 24 -1 D~~~~~~:--~~-- -~~~--~-~- 112,777 113,680 +903 tablishment. ------550,556 551,131 { +2,375 National Gallery of Art ____ 318 317 -1 Department of the Navy__ 339,620 340, 131 +511 Net increase, includ- -1,800 National Labor Relations ------ing National Mili- Board_------__ _. _____ 961 1,135 +174 Total, including N a- tary Establishment. +575 National Mediation Board. "113 108 -5 tionalMilitary Es------>1 Offiee of the Housing Ex- tablishment ______2,000, 511 2,012,443 {+15,347 . 4,635 4,635 Net increase, includ- -3,415 olliec~i~[ seieciive-service------ing National Mili- Records._------663 680 +17 taryment ______Establish- Panama Canal.------24,857 24,732 -125 --·------+11,932 • See footnote 2 in Table I.

TABLE v.--civilian and military personnel oj the NationaL Military Es.taqlishment, June 1945 to February 1948

Departm~nt of the Army 1 Department of the Air Force Month Civilian Increase (+) or Military Increase (+) or Civilian Increase(+) or Military Increase(+} or employees decrease (-) personnel decrease (-) · employees I decrease (-) I personnel I decrease (-) ------I------·I------I------I------1------194~June______1; 881, 192 ------8, 291,336 ------NoTE.-The Air Forces were divorced from the War Depart­ July------·------1, 872, 242 -8, 950 8, 266, 373 -24, 963 ment as of September 1946 pursuant to the Unification Act, August·------1, 810,971 -61,271 8, 186, 444 -79,929 Public Law 253, Eightieth Congress. Air Force civilian per­ September.------1, 621,792 -189,179 8, 023,304 -163,140 sonnel outsif!e United States is still included in the Army civilian October ..------. 1, 556, 228 -fi5, 564 7, 564, 514 -458,790 personnel reports. The figures set forth below are included in November.------1, 490, 505 -65,72.1 6, 487,053 -1,077,461 those compiled herein for the Department of the Army for pur­ December·------1, 226,904 -263,601 5, 333,978 -1,153, 07/i poses of comparison between June 194~ and February 1948. 1946-January ------1, 156, 944 -69,960 4, 228, 936 -1,105,042 Therefore, the following civilian and military personnel figures February------1, 114,211 -42,733 3, 469,272 -759,664 for the Air Forces are compiled for current information: March.------·------1, 073,864 -40, 347 2, 785,748 -683, 524 April ••• ------1, 064,018 -ll, 846 2, 430,779 -354,969 ------····-··· --········------May------·------1, 000,240 -63,778 2, 167,931 -262,848 ------June______927,075 -73, 165 2, 008, 494 -159, 437· ------July------878,374 -48, 701 1, 890,023 -118,471 ------Aseupgtue~_b_e_r __ -_-_-_-_-_-_-_-_-_-_-__--_-_-_-_-_-_-_-_- __- -_--_-_-_ 800736', 82528 : 7647', 005463 11', 7381 ~', 04356o - 74' 667 ------· ~ -84,316 ------October______699,841 -36,984 1, 737,701 +6, 661 ------November______653,190 -46,651 1, 717,432 -20,269 ------December______629,194 -23,996 1, 511,262 -206,170. ------1947-January __ ------608, 601 -20, 593 1, 319, 483 -191, 779 ------February------602, 548 · -6,053 . 1, 25:3,619 -65,864 ------March______574,923 -27,625 1, 199,456 -54,163 ------April______562,114 -12,809 1, 147,948 -51,508 ------· ------May------547, 164 -14, 950 1, 081, 492 -66, 456 ------June ______.______503,213 -43,951 1, 020,819 60,673 ------July------497,079 - 6. 134 989,664 .... ·-31, 155 ------August ______.______492,302 -4,777 972,569 -17,095 ------September______495,227 +2, 925 955,698 -16,871 ------.. ------.. October______500,711 +5, 484 940,582 -15,116 110,305 ------329, 523 ______November______491,413 -9,298 920,044 -20, .538 111,229 +924 335,671 - -- +6; 148 December •• ------489,329 -2,084 911,537 -8,507 111,700 ::t-471 339,246 +3, 575 1948--January______494,162 +4,833 898,472 -13,065 112,777 +l.o77 353,143 +13,897 February --- - -~------, ___4_9_5_, 884 ______+_1_,_722_ ____90_5_, 29_3_ ____+_6_,_8_21_ ____11_3_, 680 ______+_90_3_ ____36_5_, _186_, ___+_12_,_04_3 1 1 1 1 1 1 1 Net increase or decrease ______------1,385,308 ------7,386,043 +3,375 +35,663 NOTE.-Of the total decrease in the civilian employment of the Department of the Army and Department of the Air Forces comoined, 681,827 were industrial employees and 703,481 were classified employees. l"Includes .Air Forces. I 4088 CONGRESSIONAL RECORD-SENATE APRIL _6

TABLE V.-Civilian 'and military personnel of the Natio~nal Military Esta1Jlishment, June 1945 to February 1948-Continued

Department of the Navy Secretary of Defense Total, National ~ili_tary Establishment

Month Civilian em- Inc~~~~-(+) Military fer- Inc~~~~-(+) Civilian em- Inc~~ad~-(+) Civilian em- Inc~~ad~-(+) Military per- Inc~~aJ:.<+> .ployees crease (-) sonne crease (-) ployees crea,se (-) ployees crease (-) sonnel crease (-)

1945-June ..•••.•••••.• ___ .•••• 752,886 4, 006,011 ------!!...·------2, 634,078 12,297,347 July----·-·····------758,119 ······+s;233· 4, 028,718 ...•. +22;767" ...... ,2, 630,361 ······:.::s;7i7" 12,295,091 ---···:.::2;256 August. ..•.••••... ___ .. _ 721,342 -36,777 4, 058,817 +30, 099 ...... ------...... 2, 532,313 -98,048 12, 245, 261 -49,830 September·······------649,425 -71,917 4, 058,908 +91 ------...... 2, 271,217 -261,096 12,082,212 -163,049 October. ... ····------604,898 -44,527 3, 955,018 -103,890 ------2,161,126 -110,091 11,519, 532 -562,680 November------591,538 -13,360 3, 603,900 -351, 118 ...... ------2, 082,043 -79,083 10,090,953 -1,428,579 December------587,636 -3,902 3, 241,607 -362,293 ...... ------1, 814, 540 -267,503 8, 575,585 -1, &15, 368 1946-January _------586,994 -642 2, 819,048 -422, /i59 ------1, 743,938 -70,602 7, 047,984 -1,527,601 February------592,856 +5,862 2, 486,751 -332,297 1, 707,067 - 36,871 5, 956, 023 -1,091,961 March ______561, 501 -31,355 2, 180, 406 -306,345 ------...... ------...... 1, 635,365 -71,702 4, 966,154 -989,869 ApriL------543,854 -17,647 1, 915; 614 -264,792 ...... ------1, 607,872 -27,493 4, 346,393 -619,761 May------529,664 -14,190 1, 690,209 -225,405 ...... ------1, 529,904 -77, 968 3, 858,140 -488,253 June _____ ··-···-______490,239 -39,425 1, 437,231 -252,978 ...... ------1, 417,314 -112,590 3, 445,725 -412,415 July _____ ------470,530 -19,709 1, 159,907 -277,324 ...... ----·------1, 348, 904 -68,410 3, 049,930 -395,795 /; 419,280 -51,250 930,000 -229,907 ------·------1, 220, 108 -128,796 2, 745,356 -304,574 ~e~~~ber~~=:::::::::::: 394,740 -24,540 743, 166 -186,834 ------1, 131, 565 .-88, 543 2, 474,206 -271,150 October .. ------384,336 -10,404 739, 513 -3,653 ------·------1, 084, 177 -47,388 2, 477,214 +3,008 November------380,880 -3,456 723,904 -15,609 ...... '1, 034,070 -50,107 2, 441,336 -35,878 December------377,383 -3,497 692,308 -31, 596 ...... ------1, 006,577 -27,493 2, 203,570 -237,766 1947-January _------376,454. -929 660,174 -32,134 ------985,055 -21,522 1, 979,657 -223,913 February------·------373,923 -2,531 646,268 -13,906 ------· ...... -..... ----.---- 976,471 -8,584 1, 8~9, 887 -79,770 March ______372,124 '-1, 799 636,855 -9,413 ...... 947,047 -29,424 1, 836,311 -63,576 ApriL--·-·-···-·--. _____ 370,317 -1,807 629,024 -7, 831 ------·------932,431 -14,616 1, 776,972 -59,339 May._.------366,061 -4,256 621,614 -7,410 ...... ------913,225 -19,206 1, 703, 106 -73,866 JulyJune ______•.•••.••••••.•... ______;_ 358,432 .-7,629 610,967 -10,647 ------·----- ...... 861,645 -51,580 1, 631, 786 -71,320 353,094 -5,338 601,871 -9,096 ...... _.. __ ------850, 173 -11,472 1, 591, 535 -40,251 August._-···---______349, 148 -3,946 602, 727 +856 ...... 841,450 -8,723 1, 575, 296 -16,239 September------341,815 -7,333 601,698 -1,029 ------433" ------+433" 837,042 -4,408 1, 557, 3i)6 -17,900 October __ -·---~------·-- 340,159 -1,656 602, 549 +851 841,303 +4, 261 1, 543, 131 -14,265 November ______339,219 -940 570,431 -32,118 4.55 +22 831,087 -10,216 1, 490,475 -52,656 D ecember------339,268 +49 540,921 -29,510 636 +181 829,233 -1,854 1, 452,458 -38,017 1948-January ------339,620 +352 513, 687 -27,234 594 -42 834,376 +5, 143 1, 412, 159 -40,299 February.. ------340,131 +511 504,015 -9,672 675 +81 836,690 +2. 314 1, 409,308 -2, 8~1 ----- Net increase or decrease .. ------412, 755 ------3,501,996 +675 ------1,797,388 ------10,888,039 N OTE.-Of the total decrease in the civilian employ- -·------NoTE.-( f the total decrease in the civilian employ- ment of the Department of the Navy, 187,307 were in- ment?f the ~atlonal Military Establishment, 869,154 dustrial employees and 225,448 were classified employ- were mdustnal employees and 928,234 were classified ees. employees. I Sources:

STATEMENT BY SENATOR BYRD IN CONNECTION States by 903 employees in February, and in­ By Mr. LUCAS: . . WITH THE MONTHLY PERSONNEL REPORT FOR creased its uniformed personnel by 12,043 S. 2441. A bill for the relief of the E. J. FEBRUARY 1948 men. Albrecht Co.; to the Committee on the Ju­ The National Military Establishment 1n The Department of the Navy increased its diciary. February 1948 employed three times as many civilian employment by 511 employees but . By Mr. BUSHF1ELD: civilians per man in uniform as it employed decreased its military personnel by 9,672 uni­ S. 2442. A bill to authorize and direct the at its wartime peak in 1945. formed men for the month of February. Secretary of the Interior to issue to Mrs. Prior to current revitalization of the Na­ Total expenditures for civilian personal Avena M. Chips-White Bull a patent in fee tion's armed might, the combined armed service in the National Military Establish­ to certain land; to the Committee on In­ forces of the United States in February were ment are estimated at $2,314,748,650 for fiscal terior and Insular Affairs. employing 8 civilians' to every 14 men in uni­ year 1948. Civilian pay rolls for the armed · l;ly Mr. BALDWIN: form, as compared with 2 civilians for every forces will consume 20 percent "of the total S. 2443. A bill to extend certain benefits 12 men in uniform in June of 1945. funds appropriated for the use of the Na­ of the Civil Service Retirement Act of May In February the Department of the Army tional Military Establishment, as compared 29, 1930, as amended, to the widows and with 38 percent of the total military appro­ orphans of employees and retired employees · and the Air Forces combined employed nearly priations required for all pay, subsistence, 5 civilians to every 9 men in uniform; as com­ dying during the period from February 17, travel, welfare, training, clot hing, and medi­ 1948, to February 28, 1948; to the Commit­ pared with nearly 2 civilians to every 8 men cal expenditures of the military personnel. in uniform in June of 1945. tee on Post Office and Civil Service. Aside from the net increase of 2,314 in the By Mr. SALTONSTALL: The Department of the NaVy-was employ­ military services during the month of Febru­ ing more than 3 civilians for each 5 men in ary, the committee's report shows that there S. 2444. A bill for the relief of Jean Step­ uniform in February 1948, as compared with anoff and Alessandra Stepanoff; to the Com­ was a net increase of 9,618 in the civilian mittee on the Judiciary. 1 civilian to every 5 men in uniform in June agencies of the Government. of 1945. The major increases in civilian personnel By Mr. GURNEY: Of the net decrease of 1,797,388 civilia"n were reported as follows: Commerce Depart­ S. 2445. A bill to establish the Office of the employees between June of 1945 and Febru­ ment, 823; Interior Department, 404; Justice Inspector General, .United States Air Force-, and for other purposes;. to the Committee on ary of 1948, 869,154 were so-called industrial ~partment, 276; Post Office Department, Armed Services. employees and 928,234 were classified em­ 6,820; State Department, 616; Trea~ury De­ ployees. partment, 2,533; Civil Se_rvice commission, By M_r. MORSE: In view of recent military recommenda­ 134; and National Labor Relations Board, 174. S. 2446. A bill to amend and S'Qpplement tions these figures were- developed by the Substantial decreases in civilian personnel the Fed~ral-Aid Road Act approved July 11, Joint Committee on Reduction of Nonessen­ were reported as follows: War Assets Admin­ 1916 (39 Stat. 355), as amended and supple­ tial Federal Expenditures in connection with istration, 303; Federal Works Agency, 106; mented, to authorize appropriations for con­ its monthly report of civilian employment for Housing and Home Finance Agency, 128; tinuing the construction of highways, and February 1948. Panama Canal, 125; Reconstruction Finance for other purposes; to the C'ommittee on The report shows that during the month of Corporati ~ ~ . 170; and Veterans' Administra­ Public Works. · February the National Military Establishmen-t tion, 1,458':. • By Mr. BREWSTER (for Mr. HAWKES): increased its civilian employment by a total S. 2447. A bill to provide for the planning of 2,314 'employees. For the same period it is BILLS AND JOINT RESOLUTIONS of military aircraft requirements, to au­ revealed that the uniformed strength of the INTRODUCED thorize the development and procurement of • National Military Establishment decreased by military aeronautical equipment, and for Bills and joint resolutions were intro­ other purposes; to the Committee on Armed a total of 2,851 uniformed men. duced, read the first time, and, by unani­ The Department of the Army increased its Services. civilian employment .by a net of 819 during mous consent, the second time, and re­ By Mr. BREWSTER: the month of February, while the' military · ferred as follows: .S. 2448. A bill to provide for coordination personnel of the Army decreased by a total By Mr. WILEY (by request) : of aviation policy, to improve the adminis­ of 5,222 men. S. 2440. A bill for the reH.ef of Charles tration of the, Civil Aeron?-Utics Act of 1938, The Department of the Air Forces increased Duncan Montieth; to the Committee on. the and .to provide for an independent .office of its civilian employment within the- United Judiciary. air safety, and for other purposes; an~ 1948 ·CONGRESSIONAL RECORD-SENATE 4089 6. 2449. A bill to amend the Civil Aero­ tract Audits; to the Committee on Armed Marshal Stalin and President Truman nautics Act of 1938, as amended, to provide Services. should have a personal meeting and en­ for the regulation of interstate contract car­ By Mr. BREWSTER: riers by air, and for other purposes; to the S. J. Res. 205. Joint .resolution to establish deavor to come to some sort of under-· Committee on Interstate and Foreign Com­ a Joint Congressional Committee on Aviation standing with regard to the questions at merce. Policy, and for other purposes; to the Com­ issue between the two nations. It can By Mr. BREWSTER (for Mr. HAWKEs): mittee on Interstate and Foreign Commerce. be at once said that we have no prece­ S. 2450. A bill· to provide for the settle­ MASSMAN CONSTRUCTION CO.-CHANGE dent in the past to encourage us in the ment of claims arising from the. termina­ belief that any useful result can come tion of contracts of the armed services, and , OF CONFEREE for other purposes; to the Committee on the from such a meeting. Previous meet­ Judiciary. Mr. WILEY. Mr. President, I ask ings of this sort, whether under the By Mr. BREWSTER: unanimous consent that. the ~1.mior Sena­ Presidency of Mr. Truman or of Mr. S. 2451. A bill to encourage the develop­ tor from Rhode Island [Mr. McGRATH] Roosevelt, have each resulted in com­ ment of an international air-transporta­ be excused from further service on the plications rather than simplifications of tion system adapted to the needs of the conference committee on the bill

,- lina · [Mr. MAYBANKJ, we succeeded in posing it in the intere.st of those who might arouse an appetite for their din­ capturing 14 other votes, with the result constitute a majority_of the Washington , ner. It is these socialites, nouveaux that 17 votes were polled against it. I board of trade, I am not opposing it on riches, ·parvenus, who want daylight sav­ was hopeful that with a good attendance account of the socialites and the dilet­ ing. I think I can demonstrate that fact in the Senate on this occasion, we might tantes, and the parvenus and the nou­ to the Senate before I finish. be able to poll a m;:tjority against the veaux- riches of Washington, mosL..of ­ Mr. Presfdent, I oppose this bill be­ bill. ' whom I understand are in favor of the cause I want to give the laboring men, However, Mr. President, it is my deter­ pendjng. bill. - But I am opposing it in the mothers, and the· little children 1 mined, deliberate, and diabolical purpose the interest of the poor, the laboring hour more .of rest in the almost unbear­ to shoot the daylights out of the day­ man, those who dwell in small hovels and _able heat which occurs in our National light-saving fantasy. [Laughter.] tenements and in the ill-ventilated Capital during the summer months. The statement was made last year that abodes in the city· .of Washington in Let me quote from the Washington I was out of step with the Senate, and which the poor must rest, in the sum­ Times-Herald a picture of what happens out of step with Washingtonians. Per­ mer's heat~ And I think there is·no place during the heat waves in the city of haps I was. In fact, I was. But I cer-. on God's green earth, not even down in '\yashington. The article is heade~: tainly kept in step with my fellow Louisi­ the semitropical coast area of the United Sleep in the park if you must-during the anians; I kept in step with the farmers States, that at tim.es is more hotter than heat-but you're perfect target for a roll of the country; I kept in step with the the city of Washington. I say "more job. hotter" {or emphasis, Mr. President, be­ railroads of the country; and I ]{ept in The body of the article says: step with the National Association of cause the heat waves come dashing over the city like molten lava from the moun­ So many persons slept in the parks during Broadcasters: . I kept in step with an the recent heat wave that it wa·s almost im­ overwhelming majority of the people of tains and .make human life almost un- possible to- find .a place to lie down, and the United States. . bearable. not a few of the sleepers went home with­ Mr. JOHNSTON of . In the sweltering heat, the laboring out their purses . . Mr. President, will the Senator y.ield? man can find but very little rest, he must -wait until the early morning, when the Washington is a city of magnificent Mr. OVERTON. I yield to the Senator parks. Rock Creek Park, Potomac Park, from South.Carolina. earth~s surface is cooled, in order to find a .little repose. The poor housewife, who Hains Point, and countless other parks Mr. JOHNSTON of ·South Carolina. must rise eafly in the. morning in order· are scattered throughout the city. Yet I noticed the Senator said in beginning to get her children to school, her old .man the parks were so crowded with people his remarks that the pending bill is the off to work, prepare his breakfast, tidy suffering from the tortures of the heat same kind of bill as the one considered up the house and atte:p.d to all the house- that many of them were unable to find a last year. The pending meas_ure will . hold duties, gets 1 hour's less rest. The place in which to lie. That is not all- · make daylight saving permanent in the school children get an hour'.s less rest. There is a curfew- ' future. Last year the 'bill was merely Such is the heat, Mr. President, that for 1 year. Is that not true? these people, cooped up in the ill-ven­ I am still ·quoting from the Times­ Mr. OVERTON.. That is correct. I . tilated apartments and buildings in Herald- thank the Senator for calling my atten­ which they are ensconced must in order There is a curfew in the uptown parks, Raspberry reminded. tion to it.· I shall animadvert on that to undertake, to find ~orne cool place in · phase of the question a little later on. which to court the god Morpheus, betake That is Captain Rasp1:1erry, of the Mr. President, I 'gave fair notice that themselves to the parks of the city. Park Police. I was not in step with the action. of the There, about 4 o'clock in the morning, So if you desire to bunk out in Franklin Congress, on an occasion when I felt I they are able to fall into a fitful slumber. Park-or any of the others that dot the city, ought to rise above principle, if there Not so, not so, Mr-. President, are those . don't be surprised if an officer taps you be such·a thing as a principle in such a who live in air-conditioned apartments, _gently on the sole of the shoe when 6:30a.m. • fantastic bill. I felt I ought to assert in air-conditioned homes or surround­ . comes around. The Park Police have orders my own independence as an America~ ·ings, with every convenience of life- to "get 'em up and out" by that time, citizen and determine what time I would windows open, doors open, and expo­ Raspberry said. get up in the morning, what time I would sures on the four sides of their dwellings. Get them up early, when they could · eat my breakfast, what time I would re­ They have air-conditioning. I know fall into. a sleep in order to prepare tire, and what time I would open my of­ them well. They get up any time they themselves and refresh themselves as fice. I did so with perfect satisfaction want to, because they .do .not have to rise, best they might for the day's labor. At · to myself and with applause on the part daylight saving or no. daylight saving, 5:30 in the morning, standard time, here · of my fellow Louisianians. I put a sign at any appointed time: they get up in come the police, gum: in hand, and on my door in order that anybody com- the morning-8 o'clock, 9 o'clock, 10 · with the ·butts of their guns they rap . ing there might know that the office was o'clock; t,Pey ring for the servant who the sleepers on the soles of their feet, being run on standard time only. The , brings coffee, in order that they may bet­ f Columbia. It is also op­ municipalities, declares as follows: COOPER, Mr. ROBERTSON of Wyoming, Mr. posed by the Grange, and by the Farm Bureau Federation. We have repeatedly recommen~ed addi­ ECTON, Mr. WATKINS, Mr. RUSSELL, Mr. tional legislation broadening the scope of KEM, Mr. MORSE, Mr. McCARRAN, and Mr. Daylight-saving legislation has been the Standard Time Act, so that the standard YouNG entered the Chamber and an­ enacted in a few cities and States, mainly time provided thereby for the four zones swered to their names. in the Northeast, but after one leaves the in the United States proper be made the ex- · The PRESIDING OFFICER. Fifty­ city of Washington and goes south or elusive measure of time for all purposes one Senators having answered_ to their west of the Potomac he finds very few within the respective zones. In the last ses­ names, a quorum is present. cities, comparatively - speaking, which sion of the Congress a bill was introduced have adopted daylight-saving time. The which would have had that effect and was PRESENTATION OF HISTORIC AMERICAN bill is further opposed by the National referred to the Committee on Interstate and FLAG TO CONGRESS Foreign Commerce, but no action was taken Association of Broadcasters, it is opposed thereon. We renew our recommendation Mr. VANDENBERG. Mr. President, by the American Association of Rail­ that Congress amend the Standard Time Act as part of the Army Day ceremonies, the . ways, and it is opposed by sundry other so as to occupy the legislative field to the Army has just presented to Congress a organizations. It is also opposed by the exclusion of State legislation and local ordi­ very famous flag. It is the flag which Interstate Commerce Commission. nance respecting the vast body of daily flew over the Capitol on the day of the I should like for a moment to read two transactions which do not now fall within Pearl Harbor calamity, but which lived or three of the resolutions adopted by the scope of section 2 of that act. subsequently to fly over the capitols in these organizations. The first is ·a reso­ The Interstate Commerce Commission Berlin, Tokyo, and Rome in final victory. lution adopted by the National Associa­ renewed its recommendation on Novem­ I was permitted to participate, with tion of Broadcasters: ber 1, 1947. I ask that that recommen­ the Speaker of the House of Representa­ Resolved, That the National Association Of dation be printed in the REcoRD with­ tives, in receiving this very sacred sym~ BroadcasteJ."s, because of the confusion to out reading. 1948 CONGRESSIONAL RECORD-SENATE 4097 There being no objection, the matter set among the heavens, to fix the days, bad that they never reached the floor of was ordered to be printed in the RECORD, and the years, and the seasons. either House or the Senate. Most of as follows: Mr. President, this bill is radical, ir­ them were ill-advised and ill-conceived~ That the Congress amend the Standard religious, iconoclastic, infidelic, agnostic, After reading through those bills I would Time Act so as fully to occupy the legisla­ blasphemous. We should follow God's go out to the Capito, Park to get a breath tive field respecting standards· of time to be time. Why undertake to fix by an act of fresh air and look up into the heavens. observed throughout the Nation. of Congress another and a different time It seemed to me that the stars were like Mr. OVERTON. Mr. President, in its for the District of Columbia, or any the eyes of pitying angels looking down eighty-first annual session, held in other part of the United States. upon the bipeds we call men, moving with Columbus, Ohio, last November, the Na­ There is no argument I know of that halting, faltering, and often stumbling tional Grange adopted the following can be brought forward successfully· to steps toward that divine event to which resolution:· defend daylight-saving time. It does . all creation moves. not save any time. To save time it Mr. President, in Battery Square in Wher~s there has been much confusion caused py the ·use of both standard time and ought to be in the winter; it ought not New York City there used to be a gun daylight-saving time in the same zone; and to be in the :Summer. Daylight saving which was called the sunset gun. Per­ Whereas daylight-saving time is a hard­ ought to be in the winter when the days haps the Senator from New York [Mr. ship on agricultural people: Therefore, be it r.re shorter and the nights are longer, IvEs] can tell me whether the sunset Resolved, That we reaffirm the action of and not in the summer when the nights gun is still fired in Battery Square in · the previous National Grange convention by are short and the days are long. New York. favoring Federal legislation to make standard It is not only the golfers and the Mr. IVES. Mr. President, I presume time mandatory in each time zone in the United States. nouveaux riches to whom I have re­ that question is directed. at the junior ferred, and the aristocracy of the Dis­ Senator from New York. So far as I Mr. President, I am going to do some­ trict of Columbia, who want this day­ know, there is a great deal of construc­ thing that is rarely done in the Senate. light-saving time. There are a great tion going on at the present time around I am going to quote rather extensively many people to whom the idea appeals, the Battery~ and I doubt if the sunset from the Bible. We are undertaking now as a sort of a fantasy. They are under- gun· is fired at present. to enact a man-made law which is con­ . taking, they think, to improve the world. Mr. OVERTON. I thank the Senator trary to the precepts of the Bible and the There is nothing that is accomplished by for the information. I did not know. It ordinances of our divine Creator. I read daylight saving, because the sun rises in is only about once in a decade that I . from the Bible as follows: its own time, and it sets in its own time ever visit that wicked city, and then it In the beginning God created the heaven prescribed by our Father in Heaven at is under compulsion. When· I went there and the earth. the time of the creation of the universe. years ago in my ca_llow youth, the sunset • • But these people in their fantasy,. with gun in Battery Square was fired every And God said, Let there be light: and 'there their eyes "rolling from earth to Heav-en day at sunset. An Irishman was coming was light. and from Heaven to earth" undertake to from the old country to live in this coun­ "body forth the forms of things un·­ That was the beginning of daylight. try, and iust as he stepped on the pi~r known, and to give to airy nothing a the sunset gun was fired. He leaped m And ..God saw the light, that it was good: local habitation and a name." Daylight the air, clicked his heels together three and God divided the light from the darkness. saving is an airy nothing which is given times ana said, "What a great country And there was day and there was night. a local habitation and a name. this i~. when the sun goes down with a And . God called the light Day, and the How can we alter that which has been bang like that." darkness he called Night. And the evening provided from the begirming? ·How can I am sure that if that Irishman were a~ d the morning were the first day. we . as a legislative body undertake to to visit here today and the sunset gun • supplant the powers of the Heaven and were fired according to daylight-saving And God said, Let there be lights in the to administer daylight according to ·our time he would jump off the pier and try firmament of the heaven to divide the day own will and according to our own de­ to save himself from what he conceived from the night; and let them be for signs, crees, and not God's? and for seasons, and for days, and years: to be a bombing of New York City. Who was it, Mr. President, that set ·Mr. President- * this ball we call the earth rolling through And God made two great lights; the greater The time is out of joint: 0 cursed spite the heavens? Who was it that gave it That ever I was born to set it right. light to rule the day, and the lesser light its rotary, oscillating, elliptical motion to rule the night: he made the stars also. We have fantasies of all kinds, regi­ And God set them in the firmament of around the sun, giving us, as the Bible the heaven to give light upon the earth; says, the days, the seasons, and the mentation of all kinds. We call our­ And to rule over the day and over the years? Who was it that set all the selves a democracy living under liberty. night, and to divide the light from the dark­ planets revolving around the sun in oUr Again I make the observation that the ness: and Goq saw that it was good. solar system? Who was it that created Democratic side of the aisle is practically * solar systems upon solar systems through deserted. The Democratic Party is sup­ And God saw everything that he had made, the limitless spaces of heaven-solar posed to stand up for the rights of the and, behold, it was very good. And the systems in which there are planets 25,000 American people. It is .a party which is evening and the morning were the sixth day. times the size of the earth, and yet all supposed to take its stand by the poor, Thus the heavens and the earth were­ and by the side of the sweating brow of finished, and all the host of them. rolling in perfect unison to the music of the spheres? Yet here we undertake labor. Gone is the campaign leader who •. to contravene God's holy ordinances, to fathered the bill. He has left it -here as These are the generations of t~e heavens and of the earth when they were created, contravene what He has ordained from an orphan to be taken care of by the able in the day that the Lord God made the the beginning, which has been lasting Senator from Delaware. earth and the heavens. from the beginning, which will continue Mr. President, there is much more that through the ages. I could say about this bill, but I know The quotations are taken from Gen­ Mr. President, when I first came to the that it is useless to undertr.ke to speak esis, chapter 1. United States Senate I felt that it was after we have had two quorum calls and I read one verse from the Psalms, sent the Sergeant at Arms after absent Psalm _XIX: my duty, in order· properly to represent my constituents and my Government, to Senators. There are now ·n Senators in The heavens declare the glory of God; and read every bill that was introduced in the Ghamber. We have just been the firmament sheweth his handiwork. either the Senate or the House in order honored by the presence of the senior Now, standard time is God's time, the to ascertain whether it was good or Senator fr.om Wyoming [Mr. . time that was set from the very creation whether it Was bad. I labored long O'MAHONEY]. He makes the eleventh. of the world, the time based on the rising hours upon this almost superhuman Mr. MALONE. Mr. President, will the and the setting of the sun, the time based task, labored until midnight and after Senator yield? on dividing the light from the darkness, midnight in my office. , Some of the bills Mr. OVERTON. I yield. and the darkness from the light, the time were so absurd that they never got out Mr: MALONE. Mr. Rresictent, I am in based on the signs that the Lord God of committees. Some of them were so receipt Of' a petition from employees Of 4098 CONGRESSIONALj RECORD-SENATE APRIL 6 the Department of the Interior. I have .ab.out 4 a. m. in order to reach the markets Mercer; Jacqueline R. Watts, Mamie S. Knott, riot counted the number of names, but I early, and when the District is on daylight AI Collins, Thomas H. Mercer, Elfriede Thorn­ judge that the petition is signed by be­ time this necessitates their starting their day ford, Mrs. Emma Thomford, M. W. Thorn­ about S .a. m. As a consequence, many of ford, Sarah C. Waters, Esther H. Chapman, tween 400 and 600 persons -objecting to these farmers have decided to furnish milk William Chapman, Eva Robinson, G:t:ace Bell, daylight-saving time. The petition was and other products from the preceding day. Esther Bell, Helen s. Dame, Dora M. Shana­ submitted to me through a telephone_ Thus, these dairy and farm proucts do not berger, Spangler, Mrs. Paul V. (Mary conversation saying, in effect, that they reach the markets and homes as fresh as they R.) Bebe, Mrs. Elizabeth Harrison. had noticed that I had objected to the would if daylight saving were not in effect. Martha S. M~eks, Theresa F. Luckett, Mrs. bill when it came up on the unanimous­ W. R. Grayson, C. J. Grayson, M. Haynes, Emma C. Luckett, Anna Gabor, Hugh L. consent calendar-therefore they were J. Williams, M. Taylor, M. Dory, R. Maison, Dryden, Jr., Hugh L. Dryden, John A. Mc­ N. Smith, D. Woodson, M. M. Bell, I. W. Aneny, Mary L. McAneny, Ruth Dryden, Mary relying upon me to make it known that HamUton, M. A. Warner, R. ft.. Biscoe, R. L. Dryden, Sarah E. Kincaid, D. J. Pavarese, the request for daylight-saving time for · Diggs, M. I. Dent, M. Addison, D. W. Dixon, Herbert H. Peterson, Ruth G. Peterson, the District was far from unanimous. M. I. Samuals, G. Ford, M. I .. Lipscomb, J. M. RichardT. Rodda, Melva L. Rodda,--:Henry K. It is my present conviction that any Taylor, L. E. West, A.M. Reid, J. C. Joseph's, Dinan, Mrs. A. A. Dinan, Liliian R., Shoppy, interferen,ce by the Cong:ress of the R. A. Brown, V. H. Reid, J. M. Holley, M. I. Elsie L. Yeatman, R. Helen Jones, Helen United States in the long-established Duckett, J. M. Bennett; R. Green, R. Hanson, Lenzen, · Wm. H. Brown, Gertrude A. regular standard time should be on a M. Williamson, D. Williams, C. E. Edyland, Shoppy, Gladys V. Frost, Mrs. E. G. Mohler, national uniform basis joined in by the . H. JaJiles, A. R. King, Prince A. Lynch, Thelma Eva M. Wentzel, Walter B. Williams, C. c. transportation systems, and not to en- Brown, Mary E; Johnson, Camence Nash, Camp, Ann L. Williams, Geo. A. Vitas, A. P. Ruth Elridge, George Dorsey, Griffin Fosett, ~ Cole, Helen G. Williams, Carlyle Crook, Wil­ - courage a haphazard system where two Edith Sullivan, James Smith, Alberta Qualls, liam H. Smothers, Stephen E. Morgan, different systems-daylight saving and Bernice Hatton, Conley Hatton, Mary Smith, Florence S. Harries, R. Annette Berube, standard-are prevalent in some cities Eloise Duckett, Areatha King, William. G. Emanuel S. Brown, Sara F. Culllmore, Sydney and communities, merely adding to a Brown, Annie w. Lynch, Mrs. J.P. Rappolt, G. Cullimore, Agatha K. Fallon, Charles· s. general state of confusion. Mr; J. P. Rappolt, Mrs. R. N. Feltwell, Anni · Parnell, A. H. Frazier, L. Peirson; Calvin Peir­ E. Head, Jennie Welch, Mrs. M. T. Ingraham, To the District Committees of the Senat~ and son, Nancy T. Dryden, S . .J. Skinner, Alvin the House · of Jlepresentatives on Day- Mrs. Fannie Dunbar, Katherine Knight, Mrs. , Carper, Harold Redman, Lester 0. Stotler, Zight•Saving Time: • James H. Brodnax, Mrs. Willis. Fleetwood, Maude E. Little, Theo J. Alley, Mrs. Geor,ge ­ Mrs. E. L. Bradford, Mr. and Mrs. R. M. Felt­ We, the . undersigned taxpaying property MUler, Mrs. T. E. Nugent, Mrs. M. H. Richey. well, E. Marvine, Elizabeth Waldo, Myra Ma­ Thomas E.· Cheaney, Llewellyn J. Moore, owners and residents of the District of Co­ gee, Inez F. Bell, Mrs. Elizabeth M. Bailey, lumbia and vicinity, object to having day­ Robert E. Laney, Wallace Moore, Arthur C. A. G. Kenyon, Albert L. Kenyon, T. W. Wheat, - Harvey, Sefford Lane, J.P. Scharlje, Theo. B. light-saving time imposed . upon us now or Chas. T. Morse, Grace H. Morse, Mrs. Mar­ 1n the future, for the following reasons: Gittings, Paul E. Filmer, Ajelon A. . Dinaer, garet Wilson, Andrew Wilson, Henning H. Antoinette S. Young, Hollis H. Clark, Howard 1. Because we see no reason why we should Burton, Mrs. John H. Connaughton, Belva be inconvenienced by having our hours L. Hazeltaker, Harry C. Shepherd, Hobart W. changed , from standard time to daylight­ Hoch, Mary H. Bengel, Mrs. D. S. Shook, Mrs. Francis, Irene Staps, Paul L. Yost, Ida· An­ saving time to accommodate a few people, Dorothy E. Stone, Mrs. Jas. A. Lessard, Norine drews, Kenneth 0. Pratt, Austin Van Wooten, the majority of whom have no responsib111- J. Fauble, Katherine Lewis, Mrs. E. Dewey, Jas. C. Godwin, Toll~e C. Haltzclaw,. Charles ties and are seeking only pleasure and rec­ Miss Janet Tinker, Irma Mcinturff,, Edna W. Peters, Thomas W. Holder, I. A. Bowman, reation. G. Matthews, Helen Turner, Mercy Creech, E. L. Warden, E. Reynolds, Jack L. Lambert, 2. Because we do not· want to put our T. J. McDowell, Mrs. Roy :Beggs, Harry L. Bell, Odes White, G. E. Lamir, I. Connole, Roy E. children to bed with the sun st111 shining Theodore Smith. HUl, Sherwood D. Rodman, Wm. w: Hutchin­ and it is st111 too hot and noisy for them to Myrtle v. Arundel, Doris Woychuk, Henry son, D. L . . Green, 0. D. Davis, R. E. Cross, get to sleep. Woychuk, Maxine Partch, David Partch, D. J. Birdzell, H. W. Starkloff, B. E. Smice, · 8. Nor do we want to get our children up John w. Teagle, Helen Teagle, Ford E. Teagle, E. 0. Trainor, H. B. Arington, A. C. Doyle, . so early when it is cool and the best time J. c. Butler, Catherine Butler, ~oy c. Gordy, Theo. A.. Schultz, Thomas M. White, Ralph for them to sleep, to go to school, or those John P. 'l'hompson, W. R. Struece,. Allen K. W. Magee, J.D. Smelt, Ida Andrews, Dorothea of us who work and have to take them to Hines, M. Fields, L. J. Rogan, Jr., :Ernest C. Molander, Elizabeth Townsend, Winifred R. some place to be cared for during the day. McClure, H. w. Brown, R. J. Dungan, W. H. .Beverley, Suzane Seginah, Hilda S. Courtney, 4. Because it is impossible for those of us Andes, Nelson E. Rodeffer, A. B. Cooke, Fred Irene Orndorff, Elbert Y. Poole, I. A. Bowman, who work and have home duties and re­ J. Laskill, R. S. Harris, Delta O'Dell, Hallie J. Davis, Charles. W. Peters, J. L. Neese, sponsibilities . to get enough rest to be efil­ R. Reynolds, Ruth C. Jackson, Mary Lou .James L: Morrissey, Paul J. Dempsey, Albert cient on our jobs. Mossey, E. L. Rowan, Catherine K. Nona­ Lemp, Homer G. Wood, E. T. Montgomery, 5. We do not want to go to bed before it is maker, Elouise K. Fletcher, Kathryn Irwin, L. B. Quimby, Emll Bugosh, Charles E. dark and st111 too hot to sleep in -order to try Robert S. Weaver, Ethel E. Shifilett, Lois L. Erdmann, George G. Moore, Marian F. White, and get enough rest to keep going and be. aple Allen, Vernon F. Athey, Frances Kraft, Maude N. S. Dove, N. J; Dove, Ann .White, Helen R. to arise in time to get to work at an early V. Athey, Albert Whimpey, J. W. O'Brien, Yost, William J. McCarthy. Shirley Owens, Cecil T. Owens, C. D. West, Emory P. Roberts, J. E. Kresky, R. H. Gur­ hour, in order to give some people who have Alice West, Mr. and Mrs. Peter Comer, Mrs. nothing to do a little more recreation time. Grace Dochery, Robert D. Dochery, L. N. ganns, L. M. Davis, John E. Boardley, William These people already have enough daylight Arundel, Dorothy G. Catterton, Irvin E. Cat­ J. Smith, Coleman Bado, Bertha L. Hales, time without changing the hours. terton, Edna A. Carmichael, Olive C. Harrell, Vincent E. Matthews, Isadore D. Richards, .6. We do not need any more daylight time F: W. Batel, John R. Thornton, Thomas H. Benjamin Jones, J. T. Morrison, Jr., C. D . than we already have on standard time to Knott, Dorothy A. Knott, Ph111p McAleer, McCloUd, L. F. Newman, K. M. Burke, Gloria get our gardens worked, as the days are long J. A. Bauman, J. R. Mayberry, W. E. Knox, F. Yock, Marion A. Carpenter, Catherine enough in the summertime. E. F. Fal'ley, George R. Clarkson, S. S. Fort, Gunerman, Lewis Newell, Rachel Colvin, Mil­ 7. We do not want the t-ime changed be­ L. 0. Atchison, G. M. Cook, Edith· E. Swart, dred E. Ward, L.A. Fanget, C. R. Mm:itgomery, cause so many of us have to be at work at A. H. Davies, J. 0. Dittenhafer, W. F. Taylor, John J. Sull1n, Gerhard Lubbers, Alma 7:45, which necessitates getting up around E. F. Boucher, John Wilson, Mrs. Esta Pankey, O'Connor, Mary F. Edens, Emilie R. Dowell, 4:30 a.- m. standard time or 5:30 daylight­ D. T. Pankey, Barney Barnes, Dick Newhirk, Eugene L. Rzaezowski, M. Waugh, Raymond savings time, before it is really light, and Tommie Knott, Blall,che Whitside. Tyler, Lorena J. Herman, Willa V. Winters, then we get off duty right in the heat of the Emma Jordan, Juanita Boston, Rosie Jen­ Bonita L. Combs, Nelle Bowen, A. L. Brow, E. afternoon, when it is too hot to do anything. nings, , Juanita Monroe, Le­ V. Gannell, I. C. Bamble, Lorene.Dyson, John 8. Because we miss the most _enjoyable roy Green, Mary Johnson, John Gantt, Susie C. Rabbitt, Wm. G. Schlecht, R. E. Stevens, part of the summer evenings by having to go Gl;l.ntt, Richa:rd Foggy, Conrad Alexander, John L. Mergner, FrankS. Reed, Willie Rol­ to bed with the chickens, and'miss the good Flora Alexander, John Hill, Viola Hill, Syl­ lins, Grover C. Moreland, W. G. Schaller, sleep in the cool of the early mornings. vester Boston, Martha Brown, Willie Whop­ Michael Fleucher, Pete N. Manthos, I. W. 9. Because all social affairs have to be per, Cordelia Whooper, Everite Boston, Edna Avery, J. E. Bu~et, J. E. Norton, Mrs. Kaddy avoided to llve a life of work; eat, and not Boston, Dorothy Boston, Willie Hensley, Al­ G. Clark, Fielding Bird, Violet Ann Hamble­ enough rest and sleep. People who are the berta Jackson, Achil James, Althea James, ton, Marion :M. Miller, L. V. Mann, Geba Lune, backbone of the community are too busy with Mrs. Luc1lle Evans, Mr. and Mrs. Stephen John D. Northrop, Lucie M. Wiltshire, M. J. important things and necessary duties to Winn, Mrs. Ida Warrick, Mr. and Mrs. Roy Mellinger, Lloyd L. Young, Jessie R. Green, have much time for unnecessary recreation. Kelton, Mr. and Mrs. James Brooks, Wilbert Octavia L. Wyman, Benjamin E. Jones, 10. Because the busses and trains run on Anderson, ·willie Poteat, Mrs. Katie Randall, Myrtle V. Newman, Cecilia M. McNamara, standard time, which causes so much con­ Mrs. Sadie Harrison, Mrs. Sarah Brooks, Mrs. Helen T .. Gerson, Catherine K. Nonamaker. fusion in travel. E. F. Sutton, Edith L. Sullivan, Mrs. Dorothy 11. Daylight-sav)ng time also works a Miller, John Henry Ragins, Mrs. Ethel Snow­ Mr. President, if the Senator from hardship on the farmers and dairymen and den, Mrs. Annie Mae Taylor, Mrs. Mabel · will further yield, this peti~ others who furnish produce to Washington Eshleman, Walter W. Beale, Martha L. Keith, tion was forwarded to me because it and nearby suburbs, They usually get up Helen McNew, Dorothy M. Parrish, Eunice had appeared in th£' press that I had 1948 CONGRESSIONAL RECORD-SENATE 4099 objected upon one occasion when the · Mr. MALONE. It is worse than that. places as may be prescribed by the Commis­ bill was reached on the call of the This is merely one rriore thing piled on sioners, who shall likewise provide all ma­ chinery of election. calendar. To keep the RECORD straight,. many other things. A few years ago (b) For 2. weeks prior to the holding of Jet me say that I have no deep convic­ Congress would never have considered such referendum the Board of Commission­ tions on the question of daylight-saving doing such a thing-among other things. ers shall publish not less than three times time. We have a certain amount of I shall not go into detail regarding them weekly in the four leading dailies published work to do, and I believe that most mem­ now, but I think we are carrying on these in the· city of Washington a list of the polling bers of this body work as long as they matters to such a degree that finally the places, the polling officials, and the time of can get their clerks and secretaries to , people of the country will rise up. opening closing of the polls. (.c) All persons 21 years of age and over work, so it really makes very little dif­ Mr. OVERTON. Mr. President, before who have resided in the District of Colum­ ference -to us personally in our work I conclude my remarks,' I wish to offer an bia not less than 1 year prior to the date of here. amendment and send it to the desk and holding such referendum shall be qualified · However, I live 3,000 miles from here. have it read for the information of the to. vote at slich referendum. · When one is looking up the time when Senate. It is an amendment in the na­ (d) Polling places shall be established at he is to arrive in San Francisco, Reno, ture of a substitute, and I shall offer it. such places in the District as the Commis- . or Salt Lake City on the plane or trairi, Mr. President, I appeal to the Senate sioners shall determine will be most con­ venient to afford the largest number of quali­ he finds that he must cross three time on various grounds. The first one is that fied voters an opportunity to vote. All poll­ zones. He wonders what cities have this bill adds to the confusion. · ing places shall be open for voting from 6 daylight-saving time and what cities In the second place, there never Wa'S o'clock ante meridian to 8 o'clock post merid­ have standard time. He neYer knows any referendum in the true sense of the ian on the day during which such referen­ what time it is anywhere. He may be word among the people of Washington, dum is conducted. an hour late or an hour early for a train for only approximately 300 persons· voted, (e) There shall be five officials, exclusive or plane. It is very annoying. out of 1,250,000 persons in the metropoli­ of watchers, in charge of the conduct of the • referendum at each polling place. Not less As I have stated, I have no deep con­ tan. area. The purpose of my amend­ than two nor more than three of such · offi­ victions on the subject; if it suits the ment is· to see to it that there. is a fair cials shall be persons who favor daylight­ convenience of this body, and if the city and square election in order to determine saving time and not less than two nor more of Washington really ought to have daY­ what are the wishes of the people of the than three shall be persons who oppose day­ light-saving time, I shall not stand in city of Washington in this matter. That light-saving time .. There shall be two. the way. Because of the fact that I had is the theory on which the bill of last year watchers at each poll1ng place and at each previously objected to consideration of was ena-Cted: namely, that the people of place where counting of ballots is conducted. One watcher shall be a person in faver of -the bill, the signers -of the petition Washington would be consulted, to deter­ daylight-saving time and one .shall be a wanted me to· know that the sentiment mine what their preference .was. person opposed to daylight-saving time. among the. · Government workers - in Mr. President, I have appealed to Sen­ "(f) The· ballot shall contain only the .Washington, D. C., was by no means ators fr-om the pages of Holy Writ. Now statements "For Daylight-Saving Time" and .unanimous in favor of daylight-saving I shall appeal to the Senate by asking "Against Daylight-Saving Time," and appro­ time. Senators, if they do not · pay attention priate squares for marking the voter's choice, Mr. OVERTON. I thank the Senator to any of my other arguments, to re­ which mark shall be by pencil mark in such square. The statement receiving a majority .for his valuable contribUtion. membe:;: Old-Father Time. I should like of the total valid votes cast shall ba the Mr. BUCK. Mr .. President, will the to read, in part, a poem entitled "The choice of the residents of the District on the ·senator yield? Closing Year," by George D. Prentice: question of establishing daylight-saving Mr. OVERTON. I yield. Remorseless Time! time. Mr. BUCK. Will the Senator fro111 Fierce spirit of the glass and scythe! What SEc. 2. If the result of the referendum • conducted pursuant to the first section is in Nevada state the number of names on­ power 1 Can -stay him in his silent course, or melt favor of establishing daylight-saving time, the list? His iron heart to pity? On, still on the Board of Commissioners of the District Mr. MALONE. I ·have not counted He presses, and forever. • • • of Columbia is authorized and directed to them accurately, but I judge there are Revolutions sweep advance the standard time applicable to the approXi!Jlately 500. There are about 15 O'er earth, like troubled visions o'er the District 1 hour for a period of each year com­ pages. breast · mencing no~ earlier than the last Sunday Mr. BUCK. Would the Senator think Of dreaming sorrow; (cities rise and sink of April and ending not ·later than the last Like bubbles on the water; fiery isles Sunday of 'September. Any such time estab­ that would be approximately 1 percent Spring, blazing, from the ocean, and go back lished by the Commissioners under author- of the employees of the Federal Govern­ To their mysterious caverns; mountains rear . ity of this act shall, during the period of the ment in the city of Washington? To heaven. their bald and blackened cliffs, year for which it is applicable, be the stand­ Mr. MALONE. Perhaps so, or prob­ and bow ard time for the District of Columbia. ·ably less. At any rate, the opinion on this Their tall heads to the plain; new empires SEC. 3. There are authorized to be appro­ subject is not unanim0us in the District rise, priated, out of any money in the Treasury Gathering the strength of hoary centuries, to the credit of the general fund of the Dis­ ·of Columbia; I simply wished to point And rush down like the Alpine avalanche, trict of Columbia not otherwise. appropri­ that out. Perhaps if the petition had Startling the nations; • • • ated, such sums as may be necessary to carry gone to other departments, other names Yet Time, out the provisions of this act. might have been added to it. I do not Time the tomb-builder, holds his fierce Amend the title to read: "A bill relating attempt to say whether that would be the career, to the establishment of daylight time in the case, of course. Dark, stern, all-pitiless, and pauses not District of Columbia." Amid the mighty wrecl{S that strew his path · Mr. President, to my mind the whole To sit and muse, like other conquerors, The PRESIDING OFFICER. The matter is silly. On the other hand, to Upon the fearful ruin he has wrought. question is on agreeing to the amend­ otber persons it makes sense. So I shall ment of the Senator from Louisiana. not attempt to stand in the way of the. Mr. President, I now send to the desk· Mr. BUCK obtained the floor. view of the majority of the Senate, if a the amendment which I offer, and I ask Mr. MALONE. Mr. President will the · majority of the Senate wishes to vote for to have it read for the information of the Senator yield to me? this bill. But I do wish to point out that Senate. Mr. BUCK. I yield. 'some of the people of the city of Wash­ The PRESIDING OFFICER. The Mr. MALONE. I have noted very ington do not want to have daylight sav­ amendment will be stated. carefully the amendment the Senator ing go into effect. Of course, the Sena­ The LEGISLATIV:t CLERK. It fs proposed from Louisiana now offers to the bill. I tor from Delaware has stated that the to strike out all after the ~nacting clause should like to point out that the people percentage of people in the District of and insert the following: of the District of Columbia are not the Columbia opposing daylight saving time That the Board of Commissioners of the only ones affected. I wish to say again is a small one. District of Columbia is authorized to con­ that although perhaps Senators who live duct a referendum among the residents ilf Mr. OVERTON. Mr. President, the the District of Columbia on the question of within a few hundred miles of Washing­ Senator from Nevada agrees with the establishing daylight-saving time in the ton or in approximately the same longi­ President of the United States, when he District. Except as hereinafter provided tude will not be particularly affected­ says that daylight saving is hooey; does ~uch referendum shall be held' under such for n·ormally there is no difference be­ he not? rules and regulations and at such time and tween the time in Washington and the

. 4100. CONGRESSIONAL RECORD-SENATE APRIL 6 time in their communities, so probably hearings we conducted last year and b,e sending millions of American dollars they will not be verY. much inconven-' from the figures which I earlier ·placed to the Communist threatened countries ienceci by such a change-neve!theless, in the RECOR D, tnere is concrete evidence of Europe, when in the final analysis if a change of time such as the one now that a majority of the citizens of the city Russia was to be the chief beneficiary. proposed is made, persons in Reno, Nev., would like to have daylight saving. In the current issue of United States or Las Vegas, or on the Pacific coast Mr. OVERTON. Mr. President, if the News there is a clear and concise analy .. will be very greatly inconvenienced. Senator will further yield; I sl}ould like sis of the present situation. For instance, if during the afternoon I to read the official communication from Let us see how these programs worked. were making a telephone call to·Wash­ John Russell Young, president of the The British loan was for three and three­ ington from · my home office, if · day­ Board of Commissioners of the District fourths billions. According to the light-saving time were in effect most of of Columbia, on that subject. In a let­ analysis in the United States News, last iny office force would have left the of­ ter addressed to me under date of No­ year Britain shipped $49,000,000 worth fice for the day before I could get in vember 17, 1947, he said: of goods to Russia, and more than twice touch with them by telephone. At the MY DEAR SENATOR OVERTON: In. response to that amount to countries in eastern present time there is a difference of 3 your telephone call for information rela­ Europe, chiefly satellite nations of Soviet ·hours between eastern standard time tive to the day~ight-saving-time hearing, I Rus.sia. Machinery made up more than and the time in the Pacific coast and far am pleased to submit the following: four-fifths of Russia's purchases. In western areas, and tha_t difference would 1. Date and time that hearing .began: return Britain purchased from the Wednesday, May 7, 194'J, ~t 10 a. m. eastern European countries more than be increased to 4 hours if daylight-saving 2. Date and time hearing ended: Wednes­ time were to go into effect in Washing­ day, May 7, 1947, at 12:45 p. m. $100,000,000 worth of , timber, furs, ton. That would cause a terrific in­ 3. How many persons actually testified in canned fish, manganese, and other convenience. person? Seventy-nine. , goods. In these transactions, therefore, What I have said indicates the . im­ 4. How much written testimony pro and the Russians maintained a favorable portance of this matter to such persons, 1 con-letters, cards, etc.? balance of trade by sending $51,000,000 I believe. I really fail to see that up­ Ballots cast at hearing: worth of goods in excess of those pur­ setting the entire time arrangement in For Against chased. It is not unreasonable to sup­ Individuals·------147 98 the whole United States· is worth while. Organizations______70 9 pose, therefore, that these were Ameri­ If the railroads and the air lines and Communications: can dollars, for the most ·part, which other means of transportation and com­ Individuals ______3, 226 689 Russia gathered in from trading -with munication. would change their time to Organizations______85 19 Britain last year. conform to our whims, that would ·be 5. Is transcript of hearing available? Yes. We learn now that Britain is planning satisfactory; but that is never done. In Copy is attached hereto. to boost her trl:\.de with Russia this year other words, anyone who travels has to I hold in my hand a transcript of the · under a new trade agreement, whereby remember that such a change_ in time hearing, containing very few · pages, machinery for timber cutting, petroleum, will cause him to be either an hour which I shall be glad to show the Senator. and electrical works are to go to Russia earlier or an hour later than normally There were actually less than 400 votes in. exchange for 738,000 tons of fodder. would be the case. Of course, that is cast. Let u~ take another exampler Last most important .in connection with Mr. BUCK. Mr.- President, notwith­ year the United States offered interim traveling by railroad or by airplane. standing the objections of the distin­ aid to F;I'ance, Italy, and Austria in Perhaps a traveler·wm miss his pli:tne or. guished Sen·ator from Louisiana, I main .. the amount of $540,000,000. Last year train because, under those circumstances, tain that the people of the city want day­ France shipped to eastern Europe goods he will be either an hour earlier or an light saving. There is nothing in the bill worth $47,000,000, and paid $55,000,000 hour later than he ~ normally would. now before the Senate really except the for goods received from these nations, I, for one, , reel that daylight-saving offer of a small crumb of home rule to i~cluding Russian satellites. French ex: time confuses the entire time schedule. the disfranchised residents of this city. ports consisted of trucks, wools, chemi­ I wish- to point out to my distinguished I do not knnw of anything less they could cals, and· textiles. She imported wood colleague the Senator ·from Delaware ask in the way of self-government· than pulp, paper, , lumber, coal, and grain. that it is not altogether a matter of con­ what is contained ·in the pending bill. It While tpe difference here is sQ:iaUer, sulting the wishes of the people of the does not provide daylight saving for the France still paid out $8,000,000 more lhan District of Columbia, for they are not city. It simply permits the Commission­ she received. We must therefore con-­ the only ones concerned in this matter. ers to hold hearings and then decide clude that our loans are subsidizing this Mr. BUCK. Mr. President, I rise to whether or not they think the citizens of unfavorable balance of trade. oppose this amendment. If it is not its Washington want it. I hope the bill It may be contended that there is very purpose, certainly its result would be to little the United States can do to con­ kill the pending bill. passes. trol the trading of European nations, I agree in part with what the distin­ EXPORTS TO RUSSIA including the beneficiaries of our many guished Senator from Nevada has said Mr. ROBERTSON of Wyoming. Mr. foreign-aid programs. But let us see about inconvenience to the Members of President, I am deeply concerned, and what the United States has been doing Congress. To some extent, I think day­ the· people of my State are deeply con­ in the trade with Russia. The United light-saving time. does cause such incon­ cerned, about the material and supplies States is doing more business with east­ venience. going into Russia and her satellite coun­ ern Europe than with any other western But I am interested in trying to serve tries. The people of my State, and I be­ · European country. According to the the people of Washington, of whom, ac­ lieve over the entire United States, par­ analysis to which I have referred, the cording to the evidence adduced at the ticularly in the West, remember vividly Soviet bloc got 2.3 percent of its imports hearings, the majority are greatly in shipload after shipload of scrap iron and last year from the ·United States. favor of daylight saving for the city. petroleum products shipped to Japan al­ • During 1947 the United States sent Mr. OVERTON. Mr. President, will most up to the day of Pearl Harbor. In $431,000,000 worth of goods to Russia. the Senator ,Yield? the months and years that followed this and her satellite nations. A large per­ Mr. BUCK. I am glad to yield. scrap came back to us in the form of shot centage of this total was in machinery Mr. OVERTON. The Senator knows and shell, bombs and planes, directed and vehicles, usable in peace, no doubt, that in the referendum conducted by the against our own brothers and sons. but also usable in war. Almost 12 per­ Commissioners there were less than 400 I submit that the time has come when cent of the United States' machine and votes ' cast, out of 1,200,000 people in the the United States must carefully exam­ tool exports went to Russia. And what metropolitan area of the District of Co­ ine its foreign policy in· the light of the were our imports from Russia? We re­ lumbia. Presumably, there were at least relationship between our trade program ceived $154,000,000 worth of furs, man­ 500,000 qualified to vote. With the polls and our military program. It is time we ganese, chrome, wood pu1p, paper, and open from 12 to 12:30, no opportunity let the left hand know what the right so forth. was given the people to express their hand is doing·. The administration defends our trad­ w!shes. I voted against every foreign-aid bill ing with Russia on the grounds that that Mr. BUCK. I did not have those facts, except the European recovery plan, be­ nation is still technically an ally-and it 1 may say to the Senator, but from the cause it seemed to me to be utter folly to is further contended that the amount of 1948 CONGRESSIONAL RECORD-SENATE 4101 our exports going to Russia are not a from 6,000,000 or 8,000,000 tons of steel. Mr. STEFAN •. According to the testimony significant portion of our total ·exports. Is the Senator familiar with that? before the peficiency Committee by the Ex­ port Control Division of the Department of Regardless of how large the amounts, Mr. ROBERTSON of Wyoming. That Commerce, the. first-year operation of ERP I contend that we should not ship one is. th_e treaty which I mentioned in my will require one-fourth of all the produytion single farm tractor so long as there is remarks. · of· farm machinerY. for exportable purposes. an American farmer who wants one and Mr. MALONE. I should like to ask If I was a farmer today, I would start sav­ cannot find it. We should Iiot ship a my distinguished colleague another ing u~ my baling wire and save every piece single foot of oil line pipe or casing to question, if he will further yield. of . machinery in existence on, the farm. Russia so long as there is an American Mr. ROBERTSON of Wyoming. I This information comes directly from the Export ·control Division of the Department oil producer who needs such pipe and yield. of Commerce, and the testimony will be in cannot find it. We should not ship one Mr. MALONE. Is the Senator aware tne · hearings that are available today on single locomotive or boxcar to Russia that no export license is necessary with the first deficiency bill, which will follow so long as our railroads are still operat­ Canada, that the Dominion of Canada this bill. If the gentleman from Indiana ing with outdated and antiquated equip­ has been almost continuously, and pre­ wants the official information from the Ex­ ment, through lack of replacements. sumably is yet, using approximately a port Control Division of the Department of This formula should be applied in the million tons of..steel, that·we are shipping Commerce, I will read you briefly. careful reexamination of our entire ex­ to Canada annually thousands of tons of ­ Then the distinguished Representative port program. In addition, we should aluminum ingots and other raw mate­ from Nebraska quoted from the testi­ make every effort to administer the ERP rials, and that a large part of this mate­ mony, in which the same thing is reiter­ so that Russia will not receive our ship­ rial is manufactured into finished goods ated which was mentioned a moment ments through secondary trading oper­ and sent to countries behind the iron ago,. and that is that ·one-fourth of all of ations. curtain? our production of farm machinery this A year ago some wag suggested that Mr. ROBERTSON of Wyoming. I am year will go across the water und,er the Russia would not fight us for 5 years, aware of that, I would.say to the Senator, .provisions .of ERP. because we would not have her properly and I am also aware that there is a con­ I . think that is a vital thing to every equipped before that time. At the rate siderable amount of petroleum products, farmer in: this country: The first infor­ we are going, one would think we were particularly crude cil, being shipped mation I had regarding' it was when I bent on stepping up this timetable. from western States into Canada, in read it in the RECORD last Wednesday. Mr. MALONE. Mr. President, will return for steel. I want to bring it not only to the atten­ the Senator yield? Mr. WHERRY. Mr. President, will the tion of my distinguished colleague, be­ Mr. ROBERTSON of Wyoming. Will Senator yield? cause of the_remarks he has made, which the Senator permit me to finish? I shall Mr. ROBERTSON of Wyoming. I should be of interest to every farmer in conclude in a moment. yield . to the Senator from-Nebraska. Wyoming as well as in the whole farm­ We are bending every effort to · put Mr. WHERRY. I was very much in­ ing section of this country, but I want western Europe back on its feet, to pro­ terested in the statement made by the to bring it-to the attention of the entire duce more goods. But we must re'alize distinguished .Senator in his remarks membership of the Senat-e that · farmers that these goods will be sold largely to that not one tractor should be shipped throughout this country will be faced eastern Europe. · At the same time we under ERP so long as an, American with 25 percent of their production this are spending billions of dollars to build farmer needs a tractor to produce at year being sent out of the country un­ up -our armed forces because the threat home. Am I correct in that statement? der the provisions of ERP. of another world war is imminent. Mr. ROBERTSON of Wyoming . . That Mr. ROBERTSON of Wyoming. I The Amei'ican people have ample is correct. thank the distinguished Senator from cause for alarm when they see that our Mr. WHERRY. I should like to point Nebraska for his contribution to this out to the distinguished Senator from subject. wagon of peace is hitched to a runaway Wyoming a colloquy which occurred in horse which we are lashing with the whip Mr. MALONE. Mt. President, will the of an ill-conceived trade poiicy, while the H-ouse between Representative Senator yield? GILLIE, of Indiana, and Representative Mr. ROBERTSON of Wyoming. I at the same tme we are frantically ap­ STEFAN, of Nebraska. Representative plying the brakes in the form of an ac­ yield. STEFAN has been in · Congress 16 years Mr. MALONE. I want to take this op­ celerated defense program. and ranks very high on the House Ap­ I now yield to the Senator from portunity to express my appreciation to propriations . Committee. The _colloquy my distinguished colleague from \Vyo­ Nevada. appear..; on page 3840 of the CoNGRES­ ming for bringing up this subject at this Mr. MALONE. Mr. President, I SIONAL RECORD of last_ Wednesday, Rep­ time. It is very important, and too lit­ should like to ask my distinguished col­ resentative GILLIE, speaking to the House, tle attention is being paid to it. I think league from ·wyoming if he is familiar stated: if it could. be explained tl:\oroughly to with the fact that several principal na­ Mr. GILLIE.- Mr. Chairman, I take the floor the people of the country so that they tions included in the Marshall-plan at this time to · make inquiry concerning would fully understand it, there would countries have treaties direct with one of the important aspects of this pro­ be an entirely different temper in the Russia or the satellite countries provid­ gram, and that is farm machinery. I am Congress of the United States. ing for the manufacture and processing particularly interested in this, because we have been holding hearings in the Agricul­ If the Senator will yield further I of raw materials which we have been should like tO mention a few of the items sending them and which we 'intend to ture Committee for several months on the long-range agricultural program-that in­ which, under the trade treaty between send them under the Marshall . plan, cludes farm machinery. When our commit­ England and the U. S. S. R. are being which are to be furnished to Russia and tee w·as out West holding hearings last week, shipped: the satellite countries in the form of several witnesses, farmers and big ranchers, . Quantity or manufactured goods? spoke to the committee asking about farm Description of equipment amount Mr; ROBERTSON of Wyoming. Yes. m achinery. They talked about their wire­ bound machinery and wondered whether Narrow-gagemotives ______750-millimeter loco- _ I appreciate the Senator's question. I 1, 100 they were going to get new machinery this Flat trucks, 750-millimeter ______· am very much alive to the sit~ation. year so that they could speed up their farm 2,400 Not only that, but I would say to the operations. VVinches (2 and 3 drums)-----­ 2,400 distinguished Senator that in the last 2 Excavators ~------­ 210 weeks the question has arisen in the Then Mr. GILLIE turned to.Representa­ Caterpillar loading cranes (Diesel . tive STEFAN and said: types in substitution for equiv­ State Department ·as to whether we alent number of ·excavators)·-- 54 should complete our trade treaty with I would like to ask the gentleman from Ne­ Auto timber carriers ______250 braslca [Mr. STEFAN], a member of the Ap­ Czechoslovakia. Tugs--~------~------~----- '14 propriations Committee, how .much farm Dredgers ______Mr. MALONE. !'suppose the Senator machinery is going to be shipped under this 4 is familiar with the treaty made by Eng­ Locomobiles (units)------200 .ERP program. I understand there is quite a 50-kilowa:tt mobile Diesel electric land with Russia, which has been signed bit of it that is going to be shipped; can we generators------­ 150 and which is presumably in operation, afford to do that? Steam power turbine stations, sending Russia everything from monkey­ Representative STEFAN, in answer to 500-kilowatt ------2! wrenches to locomotives, involving a very that inquiry from Rep-resentative GILLIE, . Plywood equipment (value)---- £1,050, .000 large amount of material manufactured said: · Timber-mill equipment (value)__ £400,000 4102 CONGRESSIONAL RECORD~SENATE APIUL. 6 Mr. President, I wish to call the at­ 12:45 p. ·m.-but 2% hours. I do not referendum shall be held under such rules tention of my distinguished colleague to know what notice was given, but only and regulations and at such time and places 324 votes were cast, and the popula­ as may be prescribed by the Commissioners, the fact that a large amount of this who shall likewise provide all machinery of equipment manufactured for shipment tion of the District of Columbia .was election. to Russia and the nations behind the 850,861, and the population of tl;le metro­ (b) For 2 weeks prior to the holding of iron curtain is manufactured from raw politan area, to which the question. was such referendum the Board of Commissioners materials we send there, and it is equip­ submitted, was 1,205,220. shall publish not less than three times weekly ment which is almost entirely unavail­ As the bill now reads it provides for in the four leading dailies published in the able to the ordinary purchaser in this no r.eferendum at all. The question is· city of Washington a list of the polling places, going to be left to the Commissioners. the polling officials, and the time of opening country. and closing of the polls. Mr. ROBERTSON of Wyoming. I The Congress is · not deciding whether {c) All persons 21 years of age and over thank the Senator from Nevada. there is to be daylight saving or not. It who h ave resided in the District of Columbia DAYLIGHT-SAVING TIME IN THE is ·going to be left to three Commis­ not less than 1 year prior to the date of hold­ DISTRICT sioners to determlne. I want the people ing such referendum shall be qualified to vote of washington to be heard in the matter. at such referendum. The Senate resumed the consideration I want a democratic process provided. (d) Polling places shall be established at of the bill f 3 years. Thereafter the term of the di­ tional Defense Appropriation Act (56 Stat. Mr. WHERRY. Mr. President, I now rectors shall be for a term of 3 years, but 245)." ask unanimous consent that the Senate they may continue in office until their suc­ SEc. 4. Section 4 of the Reconstruction proceed to the consideration of Senat'e cessors are appointed and qualified. When­ Finance Corporation Act, as amended, is bill 2287, Calendar No. 1017, a bill to ever a vacancy shall occur in the office of amended to read as follows: amend the Reconstruction Finance Cor­ director other than by expiration of term, "SEc. 4. (a) ~o aid in financing agricul­ poration Act, as amended, and for other the person appointed to fill such vacancy ture, commerce, and industry, to encourage shall hold ofllce for the unexpired portion of small business, to help in maintaining the purposes. the term of the director whose place he is economic stability of the country, and to The PRESIDING OFFICER. Is there selected to fill. After the confirmation of assist in promoting maximum employment objection to the request of the Senator the directors by the Senate, the President and production, the Corporation, within the from Nebraska? shali designate one of the directors to serve limitations hereinafter provided, is author-· There being no objection, the Senate as chairman for a period coextensive with his ized- proceeded to consider the bill (8. 2287) term as director. The directors, except too "(1) to purchase the obligations of and to amend the Reconstruction Finance chairman, shall receive salaries at the rate to make loans to any business enterprise Corporation Act, as amended, and for of $12,500 per annum each. The chairman organized or operating under the laws of any of the board of directors shall receive a salary State or the United States: Provided, That other purposes. at the rate of $15,000 per amium." the purchase of obligations (including equip­ The bill is as follows: SEc. 3. Section 3 (a) of the Reconstruction ment trust certificates) of, or the making Be it enacted, etc., That section 1 of the Finance Corporation Act, as amended, is of loans to, railroads or air carriers engaged Reconstruction Finance Corporation Act, as amended to read as follows: in interstate commerce or receivers or trus­ amended, is amended to read as follows: "SEc. 3. (a) The Corporation shall have tees thereof, sh~ll be with the approval of "SEc.l. (a) There is hereby created a body suc.cession through June 30, 1960, unless it the Interstate Commerce Commission or the corporate with the name 'Reconstruction is sooner dissolved by an act of Congress. Civil Aeronautics Board, respectively: Pro­ Finance Corporation' . (herein called the It shall have power to adopt, alter, and use vided further, That in the case of railroads Corporation), with a cap•tal stock of $100,- a corporate seal; to make- contracts; to lease or air carriers not in receivership or trustee­ 000,000 subscribed by the United States of or purchase such real estate as may be neces­ ship, the commission or the Board, as the America. Its principal office shall be located sary for the transaction of its business; to case may be, in connection with its approval in the District of Columbia, but there may sue and be sued, to complain and to defend, of such purchases or loans, shall also certify be established agencies or branch offices in in any court of competent jurisdiction, State that such railroad or air carrier, on the basis any city or cities of the United States under or Federal; to select, employ, and fix the of present and prospective earnings, may be rules and regulations prescribed by the -compensation of such officers, employees, at­ expected to meet its fixed charges without Board of Directors. This act may be cited torneys, and agents as shall be necessary for a reduction thereof through judicial reor­ as the 'Reconstruction Finance Corporation the transaction of the business of the Corpo­ ganization except that such certificates shall Act.' ration, in accordance with laws, applicable not be required in the case of loans or pur­ "(b) Within 6 months after the close of to the Corporation, as in effect on June 30, chases made for the acquisition of equip­ each fiscal year the Corporation shall make 1947, and as thereafter amended; and to pre­ ment or for maintenance. a report to the Congress of the United States scribe, amend, and reJleal, by its board of "(2) to make loans to-- any financial in­ which shall contain financial statements for directors, bylaws, rules, and regulations gov­ stitution or insurance company organized the fiscal year, including A. balance sheet, a erning the manner in which its general busi­ under the laws of any State or of the United statement of income and expense, and an ness may be. conducted. Except as may be States. "'f the Secretary of the Treasury analysis of accumulated net income. The otherwi~e provided in this act or in the Gov­ certifies to the Corporation that any bank accumulated net income shall be determined ernment Corporation Control Act, the board or trust company, under the supervision of after provision for reasonable reserves for of directors of the Corporation shall deter- · th,e Comptroller of the Currency or a Stat.e uncollectibility of loans and investments mine the necessity for and the character and banking department, or any insurance com­ outstanding. Such statements shall be pre­ amount of its obligations and expenditures pany, is in need of funds for capital pur­ pared from the financial records of the Cor­ under this act and the manner in which they poses, the Corporation may subscribe for or poration which shall be maintained in ac­ shall be incurred, allowed, paid, and ac­ make loans upon nonassessable preferred cordance with generally accepted accounting counted for, without regard to the provisions stock in such bank or trust company or principles applicable to commercial corpo­ of any other laws governing the expenditure insurance company. In any case in which, rate transactions. The report shall contain of public funds, ·and such determinations under the laws of the State In which it is schedules showing, as. o4 the close of the fis­ shall be final and conclusive upon all other located,' such institutions so certified are not cal year, each direct loan to any one borrower officers of the Government. The Corporatiqn 11erm1tted to issue nonassessable preferred of $100,000 or more, each loan to any one shall be entitled to and granted· the same stock, or if such laws permit such issue of borrower of $100,000 or more in which the · immunities and exemptions from the pay­ preferred stock only by unanimous consent Corporation has a participation or an agree­ ment of costs, charges, and fees as are granted . of stockholders, the Corporation is author- ment to participate, and the investments in to the United States pursuant to the pro­ ized to purchase the legally issued capital the securities and obligations of any one bor­ visions of law codified in sections 543, 548, notes or debentures of such institutions. rower which total $100,000 or more. After 555, 557, 578, and 578a of title 28 of the "(3) in order to aid in financing projects the end of each fiscal year, beginning with United f;)tates C'ode, 1940 edition. The Corpo­ authorized under Federal, State, or munici­ the fiscal year ended June 30, 1948, the Cor- ration shall also be entitled to the use of the pal law, to purchase the securities and obli· . poration shall pay over to the Secretary of United ·states mails in the same manner as gations of, or make loans to, (A) States, the - Treasury as miscellaneous receipts, a the executive departments of the Govern­ municipalities, and political subdivisions of dividend on its capital stock owned by tlie ment. Debts due the Corporation, whether States; (B) public agencies and instrumen­ United States of America, ln the amount by heretofore or hereafter arising, shall not be talities of one or more States, municipalities, which its accumulated net income exceeds entitled to the priority available to the and political subdivisions of States; and (C) $50,000,000. United States pursuant to section 3466 of the public corporations, boards, and commis­ "(c) Within 60 days after the effective da'te Revised Statutes (U. S. C., title 31, sec. 191) sions: P1·ovided, That no such purchase or of this amendment, the Corporation shall re- except that the Corporation shall be entitled loan shall be made for payment of ordinary 1948 CONGRESSIONAL RECORD--:-SENATE 4105 governmental or n6nproject operating ex­ in the deliberation upon or the determina­ section 328 of the Banking Act of 1935, as penses as distinguished from purchases and tion· of any question affecting his personal amended, is hereby amended to read as fol­ loans to aid in financing' specific public proj- interests, or the interests of any corporation, lows: ects; • partnership, or association in which he is "Loans made to established industrial or " ( 4) to make such loans, in an aggregate directly or indirectly interested. commercial businesses (a) which are in a: .wunt not to exceed $25 ,000,000 outstand­ "(f) The powers granted to the Corporation whole or in part discounted or purch ased ing at any one time, as it may determine by this section 4 shall terminate. at the or loaned against as security by a Federal to be necessary or appropriate because of close of business on June 30, 1958, but the Reserve bank under the provisions of sec­ floods or other catastrophes. · termination of such powers shall not be tion 13b of this act, (b) for any part of "(b) The powers granted in section 4 (a) construed ( 1) to prohibit disbursement of which a commitment shall have been made of this act shall be subject to the following funds on purchases of securities and obliga­ by a Federal Reserve bank under the pro­ restrictions and limitations: tions, on loans, or on commitments or agree­ .visions of said section, (e) in the making of "(1) No financial assistance shall be ex­ ments to make such purchases or loans, made which a Federal Reserve bank participates tended pursuant to paragraphs (1), (2), and under this act prior to the close of business under the provisions of said section, or (d) (3) of subsection (a) of this section, unless on such date, or (2) to affect the validity or in which the Reconstruction Finance Cor­ the financial assistance applied for is not performance of any other agreement made poration cooperates or purchases a participa­ otherwise available on reason-able terms. All or entered into pursuant to law. ' tion under the provisions of the Reconstruc­ securities and obligations purchased and all "(g) As used in this act, the term 'State' tion Finance Corporation Act, as amended, loans made under paragraphs (1), (2), and includes the District of Columbia, Alaska, shall not be subject to the restrictions or (3) of subsection (a) of this section shall be Hawaii, and Puerto Rico." limitations of this section upon loans secured of such sound value or so secured as reason­ SEc. 5. Section 203 of title II of the joint by real estate." ably to assure retirement or repayment and resolution entitled "Joint resolution to ex­ such loans may be made either directly or tend the succession, lending powers, and the Mr. BUCK. Mr. President, I ask unan­ in cooperation with banks or other lending functions of the Reconstruction Finance imous consent that during the debate institutions through agreements to partici­ Corporation," approved June 30, 1947 (Public on this bill the privilege of the floor be pate or by the purchase of participations, or Law 132, 80th Cong.), is amended (a) by granted to Mr. Lewis M. Stevens, ·chief otherwise. inserting, immediately after "Sec. 203", counsel of the staff of the subcommittee "(2) All such loans made, or obligations "(a)", and (b) by adding at the end thereof and securities purchased under section 4 (a) . on the RFC, and to Mr. Daniel Mungall, the following: Jr., assistant counsel. (1) , (2), and (3), shal~ bear such interest or "(b) All assets and liabillties of every kind yield such return as to be reasonably calcu­ and nature, together with all documents, The PRESIDING OFFICER. Without lated to enable the Corporation to _operate books of account, and records, of the Federal objection, it is so ordered. without loss.· The fees charged for agree­ National Mortgage ·Association, a corporation Mr. BUCK. Mr. President, the order ments to participate in loans shall be at such . organized under title 3· of the National Hous­ rates as reasonably to assure the· Corporation of business now before the Senate is ing Act, all the capital stock of which is Senate bi112287, Calendar No.1017, which that these operations will be conducted owned and held by Rc!construction Finance without loss. Loans made under section 4 Corporation, are hereby transfer ed to Re­ is the result of a study authorized by (a) (4) shall bear interest at such rates as construction Finance Corporation and the Senate Resolution 132. Under the au­ the Corporation may determine. said Federal National Mortgage Association · thority of that resolution, a subcommit­ "(3) No loan, including renewals or ex­ is hereby dissolved. With respect to _the tee of the Senate Banking and Currency tensions thereof, may be made under sec­ assets, liabillties, and records ~ransferred, Committee, consisting of the Senator tions 4 (a) (1), (2), and (4) for a period or 'Reconstruction Finance Corporation' fo~ all from Indiana [Mr. CAPEHART], the Sen­ periods exceeding 10 years, and no securities purposes is hereby substituted for 'Federal or obligations maturing more tha,n 10 years ator from Ohio [Mr. BRICKER], the Sen­ National Housing Association,' and no suit, ator from South Carolina [Mr. MAY­ from date of purchase by the Corporation action, or other proceeding lawfully com­ may be purchased thereunder, except that menced by or against such corporation shall BANK], the Senator from ArkansaS" [Mr. capital hotes an~ debentures purchased, and a·bate by reason of the enactment of this FuLBRIGHT], and myself, was appointed loans made on preferred stock, capital notes act, but the court, on motion or supple­ by the chairman of the full committee to or debentures, under section 4 (a) (2) may mental petition filed at any time within 12 conduct a study of the operations of the have maturities not to exceed 20 years: Pro­ months after the date ef such enactment, Reconstruction Finance Corporation and vided, That the foregoing restriction on showing a necessity for the survival of .such maturities shall not apply to securities or to make recommendations concerning suit, action, or other proceeding to obtain its future. obligations received by the Corporation as a a determination of the questions invplved, claimant in bankruptcy or equitable reorgan­ may allow the same to be maintained by or As a result of that study and the rec­ ization: Provided further, That any loan ommendations of the subcommittee, the made to a business enterprise pri r to July against Reconstruction Finance Corpora­ tion." Committee on B~nking and Currency has 1, 1947, may, in aid of orderly liquidation SEc. 6. Subsection (m) of section 206 of reported favorably the bill now before us, thereof or the interest of the national secu­ title II ot the joint resolution entitled "Joint rity, be renewed or extended for such period which ·is entitled, "A bill to amend the ,resolution to ext end the succession, lending Reconstruction Finance Corporation Act, not in excess of 10 years and upon such terms powers, and the functions of the Reconstruc­ as the Corporation may determine. The tion Finance Corporation," approved June as amended, and for other purpos~s.'' Corporation may, in carrying out the pro-­ 30, 1947 (Public I,.aw 132, 80th Cong.), is At this point, I wish to pay tribute---to visions of subsection 4 (a) (3), purchase amended to read as follows: my fellow members on the subcommittee securities and obligations, or make loans, "(m) The first section and sections 2, 3, for the splendid cooperation, wise coun­ including renewals or extensions thereof, 9, 11, and 13 of the act approved January 31, sel, and diligent effort they contributed with maturity dates not in excess of 40 years, 1935 ( 49 Stat. 1) , as amended." as the Corporation may determine. in assisting me to carry out the man­ SEc. 7. Section 208 of title II of the joint date of the ·senate. Likewise, I want"'to " ( 4) In agreements to participate in loans, resolution entitled "Joint resolution to ex­ wherein the Corporation's 'disbursements are tend the succession, lending powers, and the commend the staff of the subcommittee deferred, such participations by the Cor­ functions of the Reconstruction Finance headed by Mr. Lewis Stevens, of Phila­ poration shall be limited to 65 percent of · Corporation," approved June 30, 1947 (Public delphia who, assisted by Mr. Daniel Mun­ the balance of the loan outstanding at the Law 132, 80th Cong.), is hereby repealed. · gall, Jr., and others, carried out the de­ time of the disbursement, in those cases SEc. 8. Section 209 of title II of the joint where tt_e total amount borrowed is $100,000 tails of the investigation in a most pains­ resolution entitled "Joint resolution to ex­ taking, efficient, and frugal manner. or fess; and shall be limited to 59 percent tend the succession, lending powers, and the of the balance outstanding at the time of functions of the Reconstruction Finance Their work has been commented upon disbursement, in those cases where the total Corporation," approved June 30, 1947 (Public most favorably by many who are famil­ amount borrowed is over $100,000. Law. 132, 80th Cong.), is amended to read as iar with it, and it should be noted for "(c) The total amount of • investments, follows: the record that under Mr. Stevens' di­ loans, purchases, and commitments made ''SEc. 209. During the period between June subsequent to June 30, 1947, pursuant to sec­ rection less than $19,000 of the $50,000 30, 1948, and the date of enactment of legis­ authorized was expended on the study. tipn 4 shall not exceed $1,000,000,000 out­ lation making funds available for admin­ standing -at any one time. istrative expenses for the · fiscal year ending Since 1934, the powers and functions " (d) No f~e or commission shall be pal~ June 30 ." 1949, the Corporation is authorized of the RFC have been expanded and by any applicant for financial assistance un­ to incur, and pay out of its general funds, modified from time to time as a result der the provisions of this act in connectio_n administrative expenses in accordance with of amendments to the original act and with any such application, and any agree­ laws in effect on June 30, 1948; such obliga­ ment to pay or payment of any sucp. fee or tions and expenditures to be charged against duties granted to the Corporation by commission shall be unlawful. · funds when made available for administra­ special statutes. In 1947 the Eightieth "(e) No director, officer, attorney, agent, tive expenses for the fiscal year 1949." Congress enacted Public Law 132, which or employee of the Corporation in a~y man­ SEc. 9. The third. paragraph of section 24 repealed for all intent and purposes, leg­ ner, directly or indirectly, shaD participate of the Federal Reserve Act, as amended by islation affecting RFC up to that date, 4106 CO·NGRESSIONAL RECORD-SENATE APRIL 6 and provided a charter for the·· Corpo­ ration. The Corporation was created, as the bank; lack of experience in handling ration. Tbis charter set forth the Cor­ will be recalled, during a period of na­ types of loans requested; requested ma­ poration's basic authority· and it is under tional financial emergency when banks, turity was too long, 5 years or less; re­ this act that the existence of the Corpo­ financial institutions, and business gen":' quested maturity was too long, being ration was extended to June 30, 1948. erally were experiencing great difficulties. over 10 years; applicant was a new en­ The Corporation's lending authority Its primary purpose at that time was to terprise; applicant was too small an en­ prior to· the 1947 act extended into five assist, by means of loans and the pur- terprise; State banking laws and policies categories. These were: (1) banks and . chase of preferred stock, the banks and of State bank examiners; Federal bank­ other ·financial institutions; (2.) rail­ financial institutions of this country ing laws and policies of Federal .bank roads; {3) public agencies; ( 4) business which were experiencing difficulties re­ examiners. enterprises; and (5) catastrophe loans. sulting f~om a general shrinkage of de­ There are other reasons, but I think In addition, under the National Housing posits and loss in value of outstanding those will suffice to show that there is Act, the Corporation was authorized to loans and investments. a. field in which an agency such as the subscribe for stock of national mortgage The RFC by December 1934 held $1,- RFC can function in the interest of the associations, and the funds so subscribed 724,000,000 in loans and preferred stock public welfare. were in turn used by the Federal Na­ purchases of banks and other financial Since the relationship between a bank tional Mortgage Association for financ­ institutions of the country. In June 1947, and its customer rests primarily on ing housing loans secured by mortgages only 4 percent of the total disbursements first-hand knowledge and confidence re­ on real estate. It might be pointed out to these institutions remained outstand­ sulting from day-to-day business experi­ that a subsidiary corporation, the RFC ing. ence, the prospective borrower has, in Mortgage .Company, has provided a As is abundantly clear from the hear­ most cases, only. his regular bank to secondary market for Veterans' Admin­ ings before the subcommittee, and as the which to look in case of a · need for istration guaranteed home loans under Members of the Senate so well know, the credit. The committee believes that section 2 of Public Law 656, Seventy­ assistance which RFC extended to these the public interest can be served by the ninth .Congress, second session. financial institutions helped greatly in presence . of a Government lending The 1947 act curtailed the former au­ saving them from disaster. agency to which an applicant, who has thority of the Corporation. It · was If aid of this character is available at been declined credit by private sources, given power to lend money to aid the the early stages of another such economic may· go for a reconsideration of his following . classifications: (1) business cycle, it should be more effective in re­ proposal. enterprises, including railroads; (2) ducing the resulting hardship and dis­ The RlrC has provided funds for pub­ financial institutions; (3) ·public proj­ tress. It is not lik~ly, however, that we lic projects, such as the San Francisco ects; and- (4) the power to-make catas­ can recogriize the first signs of such a Bay Bridge and the Pennsylvania Turn- . trophe loans. The Corporation was downturn, and recreate an agency like pike. It is not difficult to understand ordered to liquidate the RFC Mortgage - RFC in time to make it effective in the that private capital is frequently reluc­ Company, and the authority to purchase early stages. The committee believes, tant to make the initial investments on Joan& insured or guaranteed by the Vet­ therefore, that RFC should be continued such projects, but because of the public erans' Administration was removed. as~ stand-by against any such develop­ interest involved, an agency such as the The Federal National Mortgage Associa­ ment in qur economic system in the fu­ RFC can definitely fulfill a service in tion was continued and it operated by ture. It is the opinion of the committee handling such activities.. Likewise_ in the a-uthority given it under the Na­ that RFC provides an inexpensive check catastrophes, such as the Texas City dis­ tional Housing Act. The authority to against such national distress. aster and the Bar Harbor, Maine, fire, aid banks and insurance companies by Furthermore, RFC's availability during RFC loans can help to relieve public the purchase of preferred stock of these the period before the recent war, when hardships. institution& was abolished and only as­ the country was arming for defense, en­ There are, therefore, situations in sistance in the form of loans was granted. abled the Government to proceed rapidly which the public interest will be served In summary, therefore, the RFC's ac­ with the financing of those efforts. by the ·extension of financial assistance tivities prior to 1947 were changed by Should such an emergency arise again, by RFC in times wh).ch cannot be de­ the 1947 act in three respects: (1) the the presence of the Corporation will per­ scribed as emergency. For this reason, removal of the authority to provide a mit prompt financing of such steps as and because of the value of RFC as a secondary market for Veterans' Admin­ appear necessary for the defense of the stand-by in case oi national emergencies, istration guaranteed home loans; (2) the Nation. • the committee as previously stated~ is elimination· of the authority to purchase The committee conducted a survey, recommending its continuance. In so the preferred stock of banks and insur­ page 519 of the hearings, of the Nation's doing, it also recommends that alllottns ance companies; and (3) the repeal of 14,585 banks, page 481, to determine the and renewals thereof,.made by RFC sub­ various provisions under which RFC had relationship of the RFC under existing sequent to July 1, 1947, be limited to a made funds available to other Govern­ laws with the over-all banking picture. period of 10 years, excepting loans to ment corporations and departments. It was found from replies received from States, municipalities and· subdivisions Under present law, the life of RFC ex­ 6,217 banks that some of them occasion­ of States, which may·have maturities not pll'es on June 30, 1948. The committee ally declined business loans which a Gov­ to exceed 40 years. A 10..:year linit is has concluded that there are sound rea­ ernment agency could make without also recommended for the maturity of sons for justifying the continuance of the competing with private sources of credit any securities and obligations purchased Corporation on a permanent basis, and and without-exposing the Government to · by the Corporation, except that capital recommends that the RFC Act . be undue risk of loss of - the taxpayers' notes and, debentures purchased and amended by extending the life of the money. loans made on preferred stocks, capital Corporation to June 30, 1960. Commercial banks are reluctant to notes and debentures of banks and in­ The committee conducted extensive make business loans with maturities of surance companies may have maturities hearings into the operation of the Re­ longer length, for example, over 5 years, not to exceed 20 years. The committee construction Finance Corporation from because their deposits are subject to believes that by limiting business loans its inception in January 1932, and be­ withdrawal at any ·time. The survey to 10 years,•it will allow the Corporation lieves the policy Congress intended for showed that banks also decline business­ to engage in longer-term financing, the basts of RFC as expressed in the pres­ loan applications for other reasons, page where a need for such aid exists, but. will ent statute,-namely, that where pri­ 520, which are not directly concerned tend to prevent the supplying of capital vate credit is unavailable on reasonable with the credit risks involved. funds, which is the task of private inves­ terms, RFC may act to aid in financing I think it would be interesting and tors. agriculture, commerce, and industry; to worth while to put into the RECORD some The committee believes that RFC's help in maintaining the economic stabil- of the other reasons why banks refused activities should be reduced in times such , ity of the country; and to assist in pro­ these loans. They include such reasons as exist today. But it does not believe moting maximum employment and pro­ as that the loans wer,e too large for the that this can be accomplished by im­ duction-has been adhered to by the bank's loan limitations; the type of loan posing statutory restrictions on the Cor­ Directors and management of the Corpo- requested was not of a type handled by poration's powers without impairing its 1948 ·CONGRESSIONAL RECORD-SENATE 4107 ability to cope with· any emergencies to .interrupt the course of his remarks Until June of last year the Corpora­ which may arise. There are certain con­ at this time. tion borrowed money from the Treasury trols, however, which should accomplish'"" Mr. BUCK. I shall do it a little later. at a rate lower than the average rate that result. It is in the record. paid by the Treasury for its marketable The first is the limitation placed by Mr.· KEM. There is another point in securities. The· 1947 act corrected this Congress on the money which RFC may which I am particularly interested. I do for aU new borrowings, and RFC has have outstanding at any time. Under not ·know whether the Senator has given the committee its assurance' that th~ present law, the limitation on loans reached it in his address. I refer to the it will renew all of its old borrowings, re­ since June 30, 1947, is $2,000,000,000. question as to what consideration shall sulting from its lending activities, at the The committee recommends that this be be given recommendations of local com­ current average interest rate paid by the reduced to $1,000,000,000, which amount mittees. Is that subject dealt with in Treasury. 1t is agreed will be sufficient to enable the committee bill? The Corporation has had the use of the Corporation to operate under present Mr. BUCK. No; I cannot say that it its ·capital funds interest-free. This day conditions .. is dealt with in any different way from amount was originally five hundred mil­ The second control of the operation is that in which it has been dealt with lion, and is ·now three hundred and through periodic examination of RFC heretofore. twenty-five million. The committee pro­ activities by Congress. Amendments Mr. KEM. Does the Senator regard poses to reduce this further to one hun­ proposed by the committee require an­ it as sound policy for a case of this kind dred million. Also the Corporation has nual reports by the Corporation, which to be dealt with in the following manner? accumulated five hundred and fifty-one will provide a basis for the review of the Ail application for a loan is made to the million of net income, which it uses in­ activities each year. local branch or agency of the RFC and stead of borrowing from the Treasury. . The third controi is a negative· one is submitted to a local committee, which The committee proposes to require the which results from -the fact that the de­ recommends against the loan. Then the · C,orporation to pay to the Treasury each mand for RFC loans in all fields but the application is brought to the headquar­ year, as a dividend on the capital funds, . business lending field, has declined ters office in· Washington and the loan the amount by which the accumulated sharply, with the result that activity in is granted without further potice or fur­ net income exceeds fifty million. those fields has been greatly reduced. ther consultation with the local com­ Mr. President, this means a credit will The fourth control will result from mittee. Does the Senator regard that be.given to the RFC by the Treasury on compliance with three basic principles as a sound practice, or does he consider the moneys borrowed for these loans of which the committee believes should that to be a case as to which there should $725,000,000, and in doing that it will re­ govern the operations of RFC. be some safeguard in the public interest? duce the capital and surplus of the Cor­ The first of these principles is that Mr. BUCK. I do not think it is a poration to $100,000,000 and $50,000,000, the activities must not compete with sound practice. I think I know the case respectively. That will be the only private sources of credit. The existing­ to which the Senator refers, and I think money which the Corporation will have statute contains a direction that RFC that what the Senator told the manage­ which will be interest-free. The com­ ~hall not extend its financial assistance ment of the Corporation should . pretty mittee considered doing away with all of unless it is not otherwise available on well straif?ihten out the situation. the capital funds, but it seemed that it reasonable terms. The committee be­ Mr. KEM. Does the Senator think should retain some of the. basic corpo­ lieves that, by and large, RFC has com­ there should be some safeguard in the rate attributes, and this is one of the plied with this direction, and that the iaw in the public interest with regard to important ones. provisions of the present law are sutn­ that subject? . The effect of these changes will be to cient to proscribe any activity by RFC Mr. BUCK. The committee did not reqUire the Corporation to pay substan­ which might be in competition with pri­ tially all the costs to the Government of vate sources of credit. think so. It seems to me that we have pretty well taken care of that in the conducting the operations. . The annual The second principle is that RFC report of accumulated net income should, should make loans only when the public bill. If the Senator has an opportunity to read it he will note that that has been therefore, be- a good indication as to interest will be served thereby. It . is done. I shall refer a little later to the whether the operations are self-sus- obviously impossible to develop a useful taining. _ statutory definition of public interest, point which the Senator has raised. which will be sufficiently definite to pro­ · Mr. KEM. I thank the Senator. The committee has suggested that the· vide a real guide, and yet will be broad Mr. BUCK. Mr. President, in the last Corporation should adopt some reason­ enough to cover the many various situa­ analysis, the decision as to whether a able system of accounting which will per­ tions in which the public interest can loan will serve the public interest is an mit the determination of the net result be served. administrative one which must be left of' each of its, major activities. For ex­ The committee believes that there in most· cases to the d.iscretion of the ample, the Corporation should report, should' be some local, community, or Corporation's Board of Directors. The for the loans to business enterprises, the other public interest to be served by the exceptions arise from situations in which gross income, the losses, and the admin­ making of every loan and that the in­ the presence of a puplic interest will istrative expense which is attributable terest of the individual borrower should have been declared by the President, by to that function. With this information, be considered only secondary. the Congress, or perhaps by some ad­ the Congress will ·be able to appraise the Mr. KEM. · Mr. President, will the ministrative' body having the responsi­ usefulness of each major function in the Senator yield, or would he prefer to wait bility to determine public policy in cer­ light of its financial success. until the end of his address? tain fields. The committee has considered the ac­ · Mr. BUCK. I shall be glad to yield. The third ·· principle which should tivities of the Corporation in relation to Mr. KEM. . I should like to ask the govern the lending -activities of RFC is small business. The hearings before Senator from Delaware whether in the that the activities should be self-sustain­ the subcommittee disclose that 91 per­ committee bill there are any safeguards ing insofar as is possible. The committee cent of the number of RFC loans are against loans being made by the RFC b-elieves that the credit standard of the $100,000 or under, and that 65 percent for the purpose of bailing out banks or present law, which has been unchanged of such loans do not exceed $25,000. relieving banks from loans whicffi. are since 1938, is sufficient to accomplish this Graphs offered ·in the hearings-pages. shaky or which, for some reason, they purpose. It should be stated that 581 to 585-disclose that the distribution do not care to continue to carry? RFC's activities in the past-other than of the number and amount of RFC busi­ -Mr. BUCK. It is certainly the inten­ those associated with the war-have been ness loans, by size of loans, compares fa­ tion of the committee that that shall self-sustaining, as is indicated by the vorably with the distribution of com- not be done. The language contained in Corporation's accumulated net income . mercia! bank loans. It is, therefore, the bill would prohibit that, I think. of $551,000,000, which· it acquired· on its evident that RFC is serving a useful pur• We have a record of Mr: Goodloe's state­ peacetime operations prior to June 1947. pose in the, small-business field. ment here. Its wartime bperations, however, resulted The committee recommends, however, Mr. KEM . .Will the Senator point in a loss of $8,632,714,.519, of which sum that the authority to purchase surplus out that language as he proceeds? If direct subsidies accounted for $3,089,- property for small business under Gov­ he prefers to do it later, I do not want 434,0i 3. ernment priority should be removed. '1108 CONGRESSIONAL RECORD-SENATE APRIL 6 rJ'here have been some cases where this anteed or insured mortgages, but it wm Mr. KEM. Is it incorporated under authority has enabled one small busi­ not prevent it from making loa,ns to bust­ the laws of the United States? ness to obtain surplus property at the ness en~erpri s es on the security of real Mr. BUCK. Yes. expense of other interested small busi­ estate, or from granting construction Mr. KEM. And would the bill continue nesses. More important, however, is the loans for the erection of housing which it as such? fact that the benefits to ·be derived by are secured by zp.ortgages on the housing Mr. BUCK. Yes. . . this provision have been substantially to be constructed. The business lend Section 2 of the committee bill amends achieved already. RFC's budget dis­ ing authority of the present act will ade­ section 2 of the RFC Act. Language is closes that these purchases amounted to quately govern such instances. mcluded to make clear that the Office of $54,000,000 for 8 months of the fiscal I wish to comment briefly concerning Director of the Corporation is a full-tjme year 1947, and that the estimate for this· miscellaneous phases of RFC operation. position. The committee believes it de­ year is $25,000,000, and for 'the next year First of all, since the RFC was intended sirable to provide for a staggering and onlY. $3,000,000. In view of the fact that to be merely supplementary to private extension of the terms of the directors. the present fiscal 'year is three-quarters sources of credit in this country, the The term of the incumbent directors ·is over, there appears to be no real need committee feels that it should dispose extended to June 30, 1950. I might say, for a continuance of this authority. of · an investment or loan whenever pri­ Mr. President, that they were recently Mr: President, I might add that I took vate sources of credit are willing to take confirmed, and their terms expire in Jan­ this question up with the War Assets them over. , uary 1950, so it is only an extension in · Administrator, Mr. Jess ·Larson, and The committee believes too that ex­ their case of about 5 months that is pro­ understood from him that, with the ex­ cessive personnel is now employed by vided. As of that date, two directors ception of real property, he expected the the RFC which grew out of wartime ac­ shall be appointed for 1 year, two for 2 President to issue a directive or procla­ tivity, ·and that this excess personnel years, and one for 3 years. Thereafter mation in a few weeks which will do will need to be eliminated if the Cor­ the terms of the directors will•be 3 years away with all priorities after June 30 of poration is to operate more efficiently instead of 2, as presently provided. Pro-· this year. ·anct economically, vision is made for the designation of the The committee gaye some considera­ As a result of staff investigations into Chairman by the President. Heretofore tion to the question of whether special the records of the Corporation, in their the Chairman has been named by the authority to make mining development attempt to secure material to aid the Board. The committee felt' it would give loans should be given to RFC. A mining committee in its investigation, a deficient the Chairman more prestige if he were venture is a business enterprise, and as record system was uncovered. Many named by the President. It means the such is entitled to credit under the pres­ conferences concerning a proposed loan same thing, however, because the one · ent law, provided the loan meets the were never summarized or written up selected by the Board is a man who the credi-t and other standards of the act. in any form. As a result, no clear-cut President wishes to be Chairman. Special authority is required only if the chain of documentary evidence in sup­ Section 3 amends section 3 (a) of the loans cannot meet those standards. port of a given loan could be found. In RFC Act. The succession of the Cor­ During the war, RFC was authorized to . addition, a custom of maintaining poration is e~tended from June 30, 1948, make, and did make, such loans without private files by certain officials in rela­ to June. 30, 1960. Because of a · recent regard to the credit standards applicable tion to their activities and conferences Supreme Court decision, a question has to regular business loans. Of the ap­ on corporation matters grew up. While arisen as to whether RFC may not be proximately $5,800,000 disbursed, only this may be accepted practice ih cer­ entitled to the priority in bankruptcy $1,500,000 has been repaid, and the Cor­ tain private business institutions, it is · which is ~vailable to the United States. poration does not expect much additional bad practice and should-be eliminated in The committee believes that RFC should repayment. It is clear that such special a Government agency operating for the not have such priority with respect to authority will not result in the extension public· interest. The committee has rec­ debts arising from its normal lending of credit on any reasonable basis, but ommended a complete revision and over­ activities. A proviison has been included only in the supplying of very speculative haul of the present filing and record­ in· this section which will eliminate that risk capital. The committee believes keeping system so that changes in per­ priority except with ,respect to debts aris­ that R~C should be a lending institution sonnel will not affect' the available in­ ing under the specific war powers which in the true sense, and not a supplier of formation from the agency. are designated therein. The committee risk capital or of subsidies. The per­ I should now like to turn to the com­ believes that RFC should be entitled to formance of the latter activities, which mittee bill, S. 2287, and discuss the pro­ such priority with respect to debts re­ are not conducted with any real expect~­ posals of the committee, section by sec­ sulting from its wartime activities. tion of repayment, may readily distort tion. ' ' Section 4 of the bill amends section 4 the Corporation's perspective with re­ of the · RFC Act. In subsecetion (a), spect to regular loans. The committee Section 1 of the bill amends section which-designates the purposes of RFC's has felt it inadvisable, therefore, to make 1 of the RFC Act. In section 1 (a) of activity, the phrase "to encourage small any special provision for mining develop­ that act, the capital stock of the Cor­ business" has been added. This is not ment loans or for any other special type poration is reduced from $325,000,000 really an extension of RFC's power, but loan. to $100,000,000. A new subsection (lj) the committee thought it advisable to I wish to reiterate the conclusion of the is added. which requires an annual re­ make it clear that RFC aid should be committee that the RFC should operate port by the Corporation which will con­ available on the same basis to small busi­ without a loss, at least under normal tain a balance sheet, a statement of in­ ness as it is to large business. In sub­ conditions. So that-all costs may appear come and · expenses, an analysis of the section <2), which deals with the in RFC statements, the committee pro­ accumulated net income, and a schedule power to make loans to financial institu­ poses, as previously mentioned, amend­ of all loans and investments to any one tions, the committee proposes to restore ments which would reduce the funds borrower of $100,000 or more. This to the Corporation the power to sub­ which the Corporation uses without pay- · subsection (b) also provides that the scribe for, or make loans upon, non­ ment of interest to the Treasury. Corporation shall pay over to the Treas­ assessable preferred stock, or to pur­ The Federal National Mortgage Asso­ ury each year as dividend on its capital chase the capital notes ·and debentures ciation, originally established to assist in stock the amount by which its accumu­ of banks, trust companies, or insurance the creation of a normal mortgage mar­ iated net income exceeds $50,000,000. companies, when the Secretary of the ket, was subsequently authorized to cre­ Subsection (c) provides for the retire­ Treasury certifies to the Corporation th'at ate a secondary market for FHA mort­ ment of the capital stock in excess of the institution is in need of funds for gage loans. It has greatly curtailed its $100,000,000. capital purposes. This power proved ex­ activ~ties in the past' few years. · As a Mr. KEM. Mr. President, will the Sen­ tremely effective during the last depres­ result, the Committee believes that no ator yield for a question? sion and the committee believes that need exists at the present time for its Mr. BUCK. I yield. RFC should possess the. authority in the continuance, and proppses to dissolve it Mr. KEI\[. Is the Reconstruction event that such conditions should prevail into the RFC. The result will relieve the Finance Corporation a Federal corpora­ again. Corporation of authority to provide a tion? In subsection (3) , which deals with secondary market for Government guar- Mr. BUCK. Yes; it is. - the financing of public projects. the com- 1948 CONGRESSIONAL . RECORD~SENATE 4109 mittee has added the word "States'' to Mr. JOHNSTON of South Carolina. ·_wiped out entirely~ Now it is proposed make such financial aid available to the Mr. President, will the Senator yield? to try to get it in the Housing Act. States as well as to municipalities and Mr. BUCK. I yield. Mr. JOHNSTON of South Carolina. political subdivisions of States as.is pres­ Mr. JOHNSTON · of South Carolina. I hope we shall do something about it. ently provided in the statute. I should like to know if there is any­ Mr. BUCK. Subsection (c) of this sec­ In subsection (b), the present pro­ thing in this bill which might aid in tion 4 is amended to reduce the ceiling on ,·isions of that $eCtion are designated as the making of loans to veterans; that is, loans outstanding to $1,000,000,000. This subsection (1). A new subsection <2> is taking up secondary loans. The banks · ceiling applies only to loans and invest­ added, which provides that the Co_rpora­ are now loaded with veterans' second ments since June 30, 1947. tion's loans sha·u bear such interest as mortgages. Subsection (f) of section 4 is amended to be reasonably calculated to enable the Mi. BUCK. No; the bill does not make to extend the powers of the Corporation Corporation to operate without loss. such provision. The Senator is referring· to June 30, 1958. No changes are made This is in accordance with tbe commit­ to GI loans, is he not? · in the other subsections of this section. tee's belief that the operations should be Mr. JOHNSTON of South Carolina. Section 5 amends section 203 of the self-sustaining insofar as is possible. A I am referring to GI loans. 1947 act by adding a new provision which new subsection (3) is added dealing with Mr. BUCK. That subject is not in­ 'tlissolves the Federal National Mortgage the maturity of loans made and obliga­ _cluded in this bill. Association, a subsidiary of the RFC tions purchased. Prior to the 1947 Act Mr. JOHNSTON of South Carolina. which was organized under thr National loans to business enterprises and public I certainly wish there were something Housing Act. This Corporation has pro­ projects apparently had no maturity lim­ on that subject included in the bill. At vided a secondary mortgage for FHA itation. An act of January 31, 1935, as this time we are talking .about wantirrg mortgage loans. In recent years its ac- · amended, provided that maturities to help the veterans build their h'omes. tivity in this regard has been greatly cur­ should not extend beyond 1955, but I know it to be a fact that the small tailed, so the committee believes that no these loans were excepted from that act. banks througlrout the United States are substantial need exists for its continu­ The ·revisions of the RFC Act and the now loaded with second mortgages-and cannot make further loans to veterans. ance. failure to repeal the provisions of the Section 6 of the committee bill amends 1935 act have raised a question as to I wish we could be thinking about that subject and doing something in that field, the repealer section of the 1947 act by whether that limitation applies to all !tdding for repeal two sections of the act loans made under the present act. The if we want to help veterans to own their own homes. of January 31, 1935. The first of these committee believes that such a limita­ sections limited disbursements on a com­ tion fs purely arbitrary. The proposed Mr. BUCK. I will say to the distin­ mitment to 1 year from the date of the provisions will limit the maturity of guished Senator from South Carolina that the committee gave that subject a commitment. The committee can find loans and their extensions, to business no real basis for any such restriction. enterprises,, to financial institutions, and great deal of thought. The committee decided that the RFC should not provide FUrther, it has a detrimental etfect in catastrophe loans to a maXimum of 10 the case of deferred participations, s-ince years. In the case of loans secured by · a secondary market for mortgages of that kind. They had been taking them with­ ~Fe is required to disburse ·its share of the preferred stock, capital notes or de­ the loan within a year, even though there bentures of banks and insurance com­ out recourse. The loans had not been _screened, and some of them had turned may never be a need for such disburse .. panies, the maturities may be 20 years. ment. In the case of many construction This type of financing obviously requires out to be quite unsatisfactory. I may say to the Senator that the loans 'the funds are not required within a longer maturity. Loans to a business a year. It seems to the committee to be enterprise prior to July 1, 1947 may be majority report of the Joint Committee on Housing contains this recommenda- poor credit practice to require the dis­ renewed or extended for a period not bursement of the fund before it is need­ to exceed 10 years. The loans for pub­ tion: · The present secondary home mortgage ed. The second of these sections is the lic projects. may carry maturities up to maturity provision to which I have pre- market activities of the RFC should ~ be 40 years. viously referred. · , Subsection (b) (4) of this section 4 liquidated, and there should be established within the Housing and Home. Finance Section 7 of the committee bill repeals deals with what are known as deferred Agency, on a carefully> restricted basis, a participations. RFC has made three section 208 of the 1947 act which gave Government-sponsored secondary market RFC the authority to purchase under types of business loans. The first of · for a 2-year period. This secondary market these is called the direct loan, in which should be authorized to purchase both FHA­ Government priority surplus property for RFC makes and disburses the entire loan. insuted and VA-guaranteed loans on a small business. The second of these is called an im­ limited basis where such purchases do not Section 8 amends section 209 of the mediate participation. These are cases contribute to the inflationary pressures and 1947 act by changing the appropriate in which either RFC or a bank agrees are necessary to sustain the volume of resi­ dates to 1948 and 1949, instead of .1947 to make the loan, .but under an arrange­ dential construction. and 1948. This provision merely author­ ment in which RFC and tpe bank each I may also say that the amendment izes the Corporation to use its general disburses a portion of the loan. The which I understand the distinguished funds to pay administrative expenses in third type is the deferred participation. Senator from Vermont · [Mr. FLANDERS] the event .that appropriation legislation These are loans made by banks, the full offered to the Taft-Ellender-Wagner bill is not enacted by the end of this fiscal amount of which is disbursed by the bank, makes a provision of this kind. year. but under an agreement with RFC that Mr. FLANDERS. That is true. Section 9 of the committee bill amends RFC, upon request, will take up an agreed Mr. BUCK. So the subject will be section 24 of the Federal Reserve Act, as share of the loan by reimbursing the 'taken care of in that way. amended, by striking out the words "of bank for that portion of its disbursement. Mr. JOHNSTON of South Caxolina. section 5d," which was a reference to This amendment of the committee will That is, if that bill becomes law. We do provisions of the RFC Act as it existed limit RFC's share in a deferred partici­ not know what is going to happen to that prior to the 1947 amendment. Section pation loan to 65 percent of the loan in bill. . cases where the total loan is $100,000 or Mr. BUCK. That is correct. 24 limits the total amount of loans se­ less, and to 50 percent· of the total loan Mr. JOHNSTON.. of South Carolina. cured by real estate to the amount of in cases where the total amount bor­ Something should be done to help vet­ capital and surplus, or 60 percent of all rowed is over $100,000. Since the bank erans at the present time, without de­ deposits, whichever is greater. It also handles the making and servicing of the pending on some other legislation being limits real-estate loans to 50 percent of loan, the committee believes it advisable enacted. the appraised value of the property, or to prevent RFC from agreeing to take Mr. BUCK. The Senator may or may 60 percent when the loan is secured by a part of the loan unless the bank takes - not 'recall that last year the Senate Com­ an amorti~.ed mortgage under which 40 a substantial portion of the loan, and a mittee on Banking and Currency tried percent of the principal will be paid otf in larger share than has been customary to write such a provision in the bill as it 10 years or less. -Section 24, however, heretofore. I believe the chairman passed the Senate; but in conference we provided an exemption from these per­ stated that the average bank participa­ could not keep it there. The House centage limitations in the case of loans tion ir this type of loan was 75 percent. simply refused to accept it, and it was to established businesses under certain XCIV--259 4110 CONGRESSIONAL RECORD-SENATE APRIL 6 circumstances, one of . those circum­ much. However, I have maintained my I am glad to support the pending leg­ stances being loans in which RFC par­ interest in the work of the committee islation. I feel that the committee is ticipates under section 5d of the RFC Act. and the proposed legislation it reports. ' entitled to be congratulated, and the Since the lending authority of section 5d This bill really gives proper recognition Senate also, on the .thorough work that is now contamed in a different section of to the great value of the work· done by has been Clone . by the committee, to­ the 1947 revision, this amendment is the Reconstruction Finance Corporation gether with its staff, in going into all the necessary to give section 24 of the Fed­ since it was established by Congress in ramifications of the work of the Recon­ eral Reserve Act, as amended, its previ­ 1932, as I recall the date. It was created struction Finance Corporation and pre­ ous effect. to meet a demand which could not be met senting the bill for our approval. As I have stated, this is an amend­ by private lending organizations, for Mr. BUCK. I thank the distinguished ment to the Federal Reserve law; and reasons which have been explained by Senator from - for his very being such, I wrote to Mr. Eccles and the Senator from Delaware in presenting helpful remarks. For myself, I may say asked pis views on the amendment. He this bill. It was obviously impossible, at it has been a very interesting experience. wrote to me stating that there was no the time of the. creation of the RFC, for I have derived a great deal of pleasure objection whatever to it. the commercial banks to meet the tre­ from the work in which I have . had ·a Inasmuch as the present RFC act ex­ mendous calls for loans. They were not part, and from the.study that has been. pires June 30, it is desirable that this organized for such tremendous opera­ made. · measure be passed promptly. I hope tionf.; . Mr. President, when the committee re­ the ·bill as rep·orted by the Banking and Ever since the Reconstruction Finance ported the bill, a copy of it with the ac- . Currency Committee will be passed by Corporation has been in existence, it has companying report was sent to Mr. Jesse the Senate. justified, in my judgment, the first act of Jones. I received a letter in reply, ,from Mr. FLANDERS. Mr. President, as a Congress creating it. I think it fulfills a which I desire to read two excerpts. member of the Banking and Currency necessary function in the financial and Mr. Jones said: economic set-up necessary-to develop our Committee, I was one of those who went. I read the · report with great interest. It over the recommendations of the sub­ economic welfare and to preserve it. is thorough and comprehensive, and it is a committee headed by the able Senator There are now, and in my judgment .credit to your committee. The report is from Delaware [Mr. BucKl. I am glad there will continue to be, many charac­ fair, enlightening, and fully justifies the to join with him in supporting this bill ters and sizes of loans that cannot be creation and activities of . the Corporation. on the fioor of the Senate. made by the ordinary commercial bank; I think the bill you introquced extending and there must be an interim organiza­ the life of the Reconstruction Finance Cor­ However. I wish to register a little ob­ poration is well drawn, and hope it will be jection, not_ to anything in the bill, but tion, between the Government itself, as passed promptly. to one paragraph in the report. It is such, and the,private institutions which the top paragraph on page 17. · It seems are created under an act of Congress­ Coming from Mr. Jones I think that to indicate that another bill, which was the banks themselves-which can fill this is a very refreshing and a comforting reported from the· Banking and Cur­ gap. It seems to me that the more or less letter, he having played such an 1m­ rency . Committee last year, is some­ permanent character of the pending pro­ - portant part in the development of this what different in character than I think posed legislation dealing with the Recon­ large Corporation. it will prove to be when carefully read. struction Finance Corporation is wise Mr. President, if tt·ts in order, I have I refer to Senate bill 408, which by proc­ and eminentl:, justified. one or two amendments I should like to esses of attrition is one of the first bills Mr. President, I have received a letter offer to the bill. on our calendar. 'It is a bill to repeal from the chairman of the board of di­ The PRESIDING OFFICER. The bill certain powers granted tpe Federal Re­ rectors of the Reconstruction Finance is open to amendment. serve banks for making loans under sec­ Corporation, the Honorable John Good­ Mr. BUCK. Mr. President, on page 13, tion 13b-the so-called section 13b loe, who lias announced his intention to in line 3, there is an error in draftsman­ loans-and replacing them by a form of terminate his services with that organi­ ship. The word "Mortgage" should be guarantee to banks of certain loan's, zation very shortly, so as to go with a . substituted for the word ''Housing", so particularly loans to small businesses. private enterprise with which all· of us that the line will read: "For Federal I say to the Senator from Delaware are familiar. In his letter he urges the National Mortgage Association," and so that the sentence to which I take a little passage of this proposed legislation, and forth. exception is as follows: calls attention to it and the need for it. The PRESIDING OFFICER. The I wish to take this occasion to express question is on agreeing to the amend­ Senate bill 408 • • • would in effect my profound regret that John Goodloe expand .the powers of the Federal Reserve ment offered by the Senator from Dela .. banks to make these loans. is leaving the Government s.ervice. I ware. congratulate him 'on the magnificent As a matter of fact, I think the Sen­ position he is to occupy with a private The amendment was agreed to. · ator will agree with me that it contracts company, at a largely increased salary, The PRESIDING OFFICER. The bill . those powers, in that it no longer per­ much above what he is receiving as an is open to further amendment. mits the Federal Reserve banks to loan employe of the Government. Of course, Mr. BUCK. .Mr. President, I received directly to business. we could not expect to have the govern­ from Mr. Goodloe, this morning, a sug­ Mr. BUCK. The Senator means that ment embark upon a program of paying gested amendment, on page 12, in line they can have a participation up ·to 90 ,Government employees who are compe­ 10, to strike out "and", and to add after percent; does he not? tent and faithful as much money as they ''Puerto Rico", "and the Virgin Islands", Mr. FLANDERS. That· is correct. can earn in employment in private en­ so as to make subparagraph (g), lines 9 But the bill does not permit the making terprise. But it is a source Qf some con­ and 10, read: of direct loans, as the present section 13b solation that after a man has given As used in this act, the term "State" in­ does. many years of his life to public service cludes the District of Columbia, Alaska, Mr. BUCK. That is correct. and to an unselfish devotion to the wel­ Hawaii, Puerto Rico, and the Virgin Islands. Mr. FLANDERS. I thank the Sen­ fare of his country, at a modest compen­ The Chairman stated there have been ator. sation, he so establishes himself in the applications from the Virgin Islands for Mr. BARKLEY. Mr. President, I wish estimation of his country and in the es­ both business and public loans. The to say a few words in support of the bill timation of private• ~nterprise that they amendment would permit the RFC to which is now before the Senate. are willing to pay him a salary commen­ consider such loans and perhaps make I am not a member of the Banking surate with the value of his services. them. I offer that amendment. and Currency Commit~ee. I was for a Although I regret profoundly Mr. The PRESIDING OFFICER. The long tim-.; a member of that committee, Goodloe's prospective departure from question is on agreeing to the amend­ until the Congression".l Reorganization the Government service and from the ment offered by the Senator from Dela- Act required Senators to select the two particular place which he has occupied ware. · committees on which they would serve. in that service, yet I congratulate him The amendment was agreed to. So I had to give up my service on the and, the company to which he is going Mr. BUCK. Mr. President~ I send to Committee on Banking anq Currency, for the recognition it is giving his out­ the desk another amendment, which I where I had enjoyed the service very standing service and ability. ask to have read. · 1948 CONGRESSIONAL RECORD~SENATE 4111 The PRESIDING OFFICER. The loans made to other types of business. ety, 'fraud upon the court,-and a num­ Senator from Delaware offers a further The amendment reads: ber of other. acts detrimental to the Re .. .amendment, which the clerk will re.ad That any loan made· • • • for the pur­ construction Finance Corporation and for the information of the Senate ~ pose of constructing industrial fac111ties ma.y its board members. I think it was well The. CHIEF CLERK. The amendment have a maturity of 10 years plus such addi­ worth while for the committee to delve proposes to strike out the proviso be­ tional period &s is estimated may be requfred deeply into those questions and to sub­ ginning in line 15, on ·page 10, and in­ to complete such construction. . mit a report such as that which has been sert in lieu thereof the following: Mr. KEM. Is that limited to con­ given to the Senate and to the country . Provided further, That any loan made or struction facilities in Alaska? in connection with the charges which securities and obligations purchased prior Mr. BUCK. No; it does not mention were constantly being made. The com­ to July 1, 1947, may in aid of orderly liquida­ Alaska. I tried to emphasize what I un­ mittee agrees with the three-man court tion thereof or the interest of national se­ with respect to the charges of collusion, curity, be renewed or the. maturity extended derstood the purpose of it was, namely, for such period not in· excess of 10 years and to aid the pulpwood business of Alaska. impropriety, fraud upon the court, bad upon such terms as the Corporation may de­ It reads, "that. certain loans for the pur­ faith, and so forth, which were made by termine: Provided further, That any loan pose of constructing industrial facilities, certain individuals against the Recon­ made under section 4 (a) (1) for 'the purpose may have a maturity of 10 years plus struction Finance · Corporation and its of constructip.g industrial facilites may have such additional period as is estimated members. In other words, the Recon­ a maturity of 10 years plus such additional may be required to complete such con­ struction Finance Corporation comes out period as is estimated may be required to struction." complete such construction. clean as the ·result of the investigation Mr. KEM. Did the committee favor which was made by the committee re­ The PRESIDING OFFICER. The making that exception in such cases? garding this one very impor:t·ant ques­ question is on agreeing to· the amend­ Mr. LUCAS.- Mr. President, &.parlia- tion. ment submitted by the Senator from mentary inquiry. · I desire to pay tribute to Mr. Goodloe, Delaware. The PRESIDENT pro tempore. The Jesse Jones, and the other members ·of Mr~ KEM. Mr. President, may I have Senator will state his inquiry. the Corporation who did such a magnifi­ an explanation of the amendment? Mr. LUCAS. May a Senator debate cent job in handling the funds of the tax­ Mr. BUCK. I intend to explain it. with another Senator. while1 he remains payers in a great emergency before the The pending bill refers simply to loans seated? war, during the war; and since the war. made to a business enterprise. The The PRESIDING OFFICER. The They deserve credit instead of condem­ -amendment would widen or broaden it Senator from Delaware, having the floor, nation. That is what the committee so that "any loan made or securities and yielded to a question by the Senator from found in making its report, and I con­ obligations purchased prior to July 1, Missouri. That was all. 1947, may in aid of orderly liquidation gratulate the committee. Mr. LUCAS. Mr. President, I submit Mr. 'BUCK. Mr. President, I wish to thereof or the interest of national se­ that does not answer the question. I curity, be renewed or·· the maturity ex­ was merely asking as a matter of infor­ subscribe to much which the distin­ tended for ·such period not in excess mation from a parliamentary standpoint. · guished Senator has said, particularly regarding the- management of the Re­ of 10 years.'' That is the difference. The PRESIDING OFFICER. In the The bill as it reads simply provides for opinion of the. Chair, when a Senator construction Finance Corporation. I do a business loan. The amendment would addresses a question to another Senator, not subscribe to the indictments which .extend it as indicated. he should rise. were made against the Corporation and The · second part of the. amendment Mr. LUCAS. I thank the Chair. individuals connected with it, to which .covers an amendment proposed bY the Mr. BUCK. Ihav,e completed my ex­ the Senator from Illinois has referred. Senator from Washington [Mr. CAIN], pianation of the amendment, except to That is now history, and we have here a which 'lies on the desk. Mr. Goodloe say that the committee did not pass upon report which I feel is up to date and inqorporated th~t amendment in . the the amendment. It was ~ubmitted ·by which, I think, completely disposes of amendment which has just been read. the Senator ~rom Washlngton [Mr. the matters which were referred to' by The Senator from Washington was un­ CAIN], I think, last week, before he left. the Senator. · able to be here to offer the amendment Mr. KEM. Is the amendment recom­ Mr. LUCAS. Mr. President, I desire today. mended by the committee? to say a word further in regard to the The purpose of the amendment, as we Mr. BUCK. I cannot say that it is. It subject. I am happy that the Senator understand it, is to permit the RFC to was passed upon by Mr. Stevens. He from Delaware agrees with the position assist in the investment in necessary could see no objection to it, and I could · I have suggested. It is very easy in these facilities for opening up the pulpwood see no objection to it. I 'referred it to days to indict public officials by innuendo supplies of Alaska for newsprint. I con­ Mr. Stevens. Mr. Goodloe, with Mr. or implication. It is done right along, sidered the amendment and consulted Stevens' help, I think, has written it, and without any facts to support the charges. with Mr. Stevens and others concerning incorporated in the amendment the pro­ A charge was made, but when the com­ it. We see· no objection to it and are vision which has just been read. mittee went into the facts it discovered glad to accept it. Mr. LUCAS. Mr. President, before a there was no basis for the charge. Mr. KEM. Mr. President, will the vote is taken on the biJ}, I want also to The point I make is that the Members Senator yield for a question? congratulate the committee on bringing of the United States Senate should be Mr, BUCK. I am glad to yield. in such a full report in connection with careful with regard to indicting men high Mr. KEM. Why is a special amend­ the operations of the Reconstruction Fi­ in office through any kind of innuendo ment deemed necessary for the purpose nance Corporation. It was only a short or implication.- We ought to know where­ stated? · while ago, when hearings were held be­ of we speak, because we qurselves are Mr. BUCK. The amendment pro­ fore the committee, that many innuen­ constantly subjected to that kind of vides that there may be a maturity of dos were being uttered arid indictments treatment through letters, distortions in 10 years, plus such additional period made by various witnesses against mem­ the press, and what not. I feel so keenly as it 'is estimated may be required to bers of the Reconstruction Finance Cor­ about what the committee has done in complete construction. It allows for an poration. That was especially true with cs:mnection with giving to the members ' · extension of more than 10 years on a loan respect to a loan which was made by the of the board of the RFC the credit to in. this particular classification. Reconstruction Finance Corporation to which .they were entitled, that I wanted Mr. KEM. In the opinion of the Sen­ the Baltimore & Ohio Railroad Co. to raise my voice in thanks for the ac­ ator from Delaware, is an extension of · I recall that almost every day the tion the committee has taken. that kind justified? In the case of pulp­ newspapers have carried headlines re­ Mr. BUCK. Mr. President, in conclu­ wood loans in Alaska, is an exception garding the lack of good faith on the sion, I should like to call to the atten­ justified? part of certain officiais of the Recon­ tion of the distinguished Senator from Mr. BUCK. It is not an exception. struction Finance Corporation. They Missouri [Mr. KEM] a letter appearing There could be other types of loans, or. were charged with collusion, impropri- at page 613 of part 2 of the hearings, and 4112 CONGRESSIONAL RE.CORD-SENATE APRIL- 6 I should like to read the letter into the their rights and prerogatives. It seems The PRESIDING OFFICER. On the RECORD. It reads as follows: to me there is too much opportunity for passage 'of the, bill just disposed of, the RECONSTRUCTION FINANCE CORPORATION, abuse, too much opportunity for public question recurs on the conference report. Washington, January 28, 1948. funds in the hands of the RFC to be.used Mr. . WHERRY. I ask unanimous con­ Mt. LEWIS M. STEVENS, ' for the purpose of dumping a bad loan. sent that the Senate now proceed to the Chief Counsel, RFC Inquiry, Senate Mr. President, I do not wish to enter consideration of Calendar No. 702, Senate Commi ttee on Banking and Cur­ into any extended discussion of the bill 1557, a bill to incorporate the Cath­ r ency, Washington, D. C. question, but, as the Senator knows, in olic War Veterans of the United States DEAR MR. STEVENS: This is in response to your inJquiry toqay, by telephone, concern­ some instances the RFC may perhaps be of America. ing whether the RFC makes loans to busi­ censurable. · Mr. CHAVEZ. I object. ness enterprises for the purpose of enabling Mr. BUCK. I will say to the Senator Mr. WHERRY. A parliamentary in­ • the borrowers to repay loans from banks or that I know of only one case of that kind, quiry. other lending institutions, thereby baUing and it was gone into very thoroughly by The PRESIDING OFFICER. The the latter out of doubtful and frozen loans. the distinguished Senator himself. Senator will state it. Your inquiry can be answered, categor­ · Mr. KEM. I think the facts were de­ Mr. WHERRY. A conference report is ically, in the negative. The RFC does not veloped, but they indicated the desirabil­ always a privileged matter, is it not? make loans for such purpose, and this has ity of legislation on the subject. been its long-established policy. The PRESIDING OFFICER. The pres­ However, under certain conditions, the RFC The PRESIDING OFFICER. The entation of a conference report is a has made and does make loans where a por­ question is on agreeing to the amend­ privileged matter. tion of the proceeds may be used to repay ment offered by the Senator from Dela­ Mr. WHERRY. Therefore a motion previously existing loans, but only where the ware. to displace now would not in any way retirement of such existing loans is inci­ The amendment was agreed to. involve the rights of that privileged mat­ dental to the consolidation of the borrower's The PRESIDING OFFICER. The bill -ter? indebtedness and collateral security, or is is open to further amendment. The PRESIDING OFFICER. It is the COJlSidered a proper step in strengthening If opinion of the Chair that it would not. t:Pe borrower's position. In no case is the there be no further amendment, the making of a loan by RFC based, in any question is on the engrossment and third Mr. WHERRY. I move that the· Sen­ measure, upon a consideration of taking a reading of the bill. ate proceed to the consideration of Cal­ bank or other lending institution out of a The bill was ordered to be engrossed endar No. 702, Senate bill 1557. bad loan. for a third reading, was read the third The PRESIDING OFFICER. The There have been some cases in which, time, and passed. clerk will state the bill by title. where special circumstances warranted such Mr. FULBRIGHT. Mr. President, I The CHIEF CLERK. A bill (S. 1557) to action, RFC has taken a bank out of a loan wish to pay tribute to the efficient and incorporate the Catholic War Veterans which at the time was considered a sound of the United States of America. loan, and it is possible that other similar intelligent manner in which the Sena­ cases may be presented where the public in­ tor from Delaware [Mr. BucK] handled The PRESIDING OFFICER. The terest might be best served .by a departure Senate bill 2287. I particularly wish to question is on agreeing to the motion of from our general policy. commend. him for having obtained the the Senator from Nebraska. With best wishes, services of Mr. Lewis M. Stevens and his Mr. CHAVEZ: Mr. President, 1 in­ Sincerely yours, staff, and to say that in all my experi­ quire of the acting majority leader what JoHN D. GooDLOE, Chairman. ences I have never seen a staff handle the schedule will be from now on. Mr. KEM. Mr. President, will the legislation mor~ efficiently than this · Mr. WHERRY. It had been my in­ Senator yield? group. I attended all the meetings of tention, if Senate bil11557 had been made Mr. BUCK. I am glad to yield to the the committee, which began last fall, the unfinished business, to move a recess Senator from Missouri. · and the committee and its staff have until tomorrow. Now my motion is to Mr. KEM. I should like to ask the done a remarkably fine piece of work make Senate bill 1557 the unfinished Senator from Delaware whether he in reviewing tne whole background and business, so it seems to me that, if it is thinks the proviso contained in the first history of legislation dealing with the ag:r:eeable to the Senate, at this hour we sentence of the second paragraph is, in Reconstruction Finance Corporation, should take a recess until tomorrow. and effect, the negative of the categorical and they deserve the congratulations of debate the motion at that time. statement contained in the first para- ­ the whole Senate. Mr. CHAVEZ. The Senator's pro:­ graph. Reading the two tpgether, as I Mr. BALDWIN. Mr. President, there posal is that the Senate recess at this see it, it means that the RFC does not have been several Members of the Sen­ time, without passing on the motion? baJl out banks except under certain cir­ ate who have paid high and well-de- Mr. WHERRY . . Yes. The motion is cumstances when it thinks it is desirable . served praise to the membership of the the unfinished business, and if there is to do so in order to strengthen a bor­ committee which developed the Recon­ to be debate on it, if it meets with the ap­ rower's position. From my point of view, struction Finance Corporation bill and proval of the Senate I suggest that, at the ·there ought to be in the law a positive · submitted such an excellent report on conclusion of the session today, the Sen­ provision forbidding the RFC to bail out it. No doubt the Reconstruction Fi­ ate recess until tomorrow at noon. banks. I do not think anything else is nance Corporation has been one of the Mr. CHAVEZ. Mr. President, I believe sufficient, ·in the public interest. I do most successful agencies of the Govern­ the acting majority leader is taking the not think the letter which the Senator ment Congress has ·created in a great proper course. In my opinion, there is has read is sufficient as an indication of many years, or perhaps has ever cre­ · no more important question before the the policy of the Board. As I read the ated. I think all of us may well pay Congress than that which is involveti in letter, it simply means that the Board tribute to its splendid record and to the these proposals and the result which will not bail out banks unless it thinks able men who have administered its in­ might follow if we adopted this motion it desirable to do so. I do not believe tricate affairs down through the years. and then passed the bill. It is my pur­ that is the tntention of the Congress, or I myself should like to say a word of pose, notwithstanding the fact that the the will of the American people. If the praise and commendation on behalf of bill affects people of my religion, to delve Senator will permit me to say so, I am the American who first suggested and deeply into the philbsophy of t1;le matter, sorry that the committee has not rec­ recommended to the Congress the organ.:. into the Americanism of the matter, into ommended an amendment to the law or ization of a Reconstruction Finance Cor­ the serious implications of dividing the a provision which would either forbid er poration, and to pay grateful tribute to American people. I am prepared to de-. ' severely curtail that prerogative of the him for his wisdom and farsightedness bate the question this evening, but I RFC. in making that recommendation-for­ should rather wait until tomorrow. Mr. BUCK. Does not the Senator mer President . Mr. WHERRY: In view of ,the state­ think that in a matter of that kind it is ment of the distinguished Senator, I a matter of business judgment on the ORDER OF BUSINESS think the only sensible thing to do is to part of the directors? . Mr. WHERRY. Mr. President, I in­ recess until tomorrow, at the conclusion Mr. KEM. I do not think they should quire what is the parliamentary situa­ of business today. have that ppwer at all. I think it tion as to the business now pending Mr. LODGE. Mr. President, am I cor­ should be something entirely beyond before the Senate? rect in my understanding that after the 1948 CONGRESSIONAL RECORD-SENATE 4113 Senate has disposed of Calendar No. 702, Mr. McMAHON. Mr. President, am I EXECUTIVE MEsSAGES REFERRED Senate bill 1557. either- by voting it up or correct in understanding the Senator to As in executive session. voting it down, it. is the intention to take say that he will ask to have taken up for The PRESIDING OFFICER was called it is right that they should It is then anticipated that the Senate have their day in court. Whether Sena­ will consider Calendar No. 897, Senate EXECUTIVE REPORTS OF COMMITI'EES tors are for them or against them, I bill 1004. I doubt if that bill will be As in executive session, think the only proper thing to do is to reached tomorrow, however, in light of The following favorable reports of bring them up and have them voted up what has been said here tonight rela- nominations were submitted: or down. Therefore, it is my intention, . tive to the consideration of the three bills By Mr. WILEY, from the Committee on at the conclusion of the debate and ac­ to which I just referred. But either at . the Judiciary: tion on Calendar No. 702, Senate bill the conclusion of the debate on those Edney Ridge, of North Carolina, to .be ~ 1557, to bring up Calendar No. 696., Sen­ three bills, or their disposition, it is the United States marshal for the midrop~als meet the same solicitous atti­ the sessions of the Semite this week. I session, the Senate consider the nomina­ tude and be brou,ght up for discussion do not guarantee that the bills I have tions on the Executive Calendar. in the Senate? _ mentioned will be brought .up. It all de­ The PRESIDING OFFICER. Is there Mr. WHERRY. Mr. President, t~e pends on what action is taken on one bill objection to the request of the Senator distinguished Senator from New Mexico as to when a succeeding bill. can be from Nebraska? The Chair hears none. · knows that I a.m not at this time discuss­ considered. The clerk will state the nominations on ing the merits of the bills to which ref­ Mr. . FULBRIGHT. Mr. President, the calendar. erence has been made, but the bills have since there appears to be a period of time The legislative clerk proceeded to read been on the calendar for some time, and during which we can take up for consid­ sundry nominations in the Public Health t think that even I have objected to their eration certain bills, I should like to ask Service. · consideration in behalf of other Sena­ the acting majority leader if it would be ·Mr. WHERRY. Mr. President. I ask tors, because. they were not present and possible to bring up for consideration that the nominations in the Public ready to debate the issues. If any other Calendar No. 169, Senate bill 299, to ex­ Health Service be confirmed en bloc. such measures, whether they relate to tend the reclamation laws to the State of The PRESIDING OFFICER. Without Episcopal, Methodist,· or even Presby­ Arkansas. That bill has been on the objection, the nominations are confirmed terian, war veterans, are on the calen­ calendar for a long time. In fact, the en bloc. dar, and have been .on the calendar a.s bill appears on page 1 of the calendar. Mr. WHERRY. I ask that the Presi­ long as have been the bills we are dis­ It affects only the State of Arkansas, and dent' be immediately notified of the nom­ cussing, I think the time will come when I have not asked that it be brought up inations just confirmed. they, together with every other measure heretofore, simply because of pressure of The PRESIDING OFFICER. Without ·of this character, should have their day very important business. I should like objection, the President will be so noti­ in court, and be voted either up or down. to request now that the acting majority fied .. Mr. President, I suggest to the mem­ leader give consideration to bringing RECESS bership of the Senate that for the re­ that bill up for consideration. I believe Mr. WHERRY. I move that the Sen­ mainder of the week it is contemplated there is but one Senator who objects to after whatever disposition is made of . ate take a recess until tomorrow at 12 it. I know of no other Senator who has o'clock noon .. Calendar No. 702, Senate bill 1557, Cal­ objection to it. The bill affects only the 696, 1356, The motion was agreed to; and Mr. WHERRY. Mr. President, I will Executive nominations received by the of the Surplus Property Act of 1944, as say to the distinguished Senator from Senate April 6

,. DIPLOMATIC AND FOREIGN SERVICE From Foreign Service officers of class 6 to IN THE AiR FORCE The following-named persons ._ for promo­ Foreign Service officers of class 5 ;_ Robert W. Adams, of Texas. TEMPORARY APPOINTMENTS IN THE AIR FORCE OF tion in the Foreign Service of the United THE. U~ITED STATES States bf America: Robert G. Bailey, of New Jersey. From Foreign Service officers of class 2 to Quentin R. Bates, of Iowa. · T~ be 'major ge"!'erals Foreign Service officers of class 1 : Williams Beal, of Massachu~ettS. Col. James Dennett Mcintyr~. A07466, Don C. Bliss, Jr., of Mississippi. Robert M. Beaudry, of Maine. United States Air Force, retired. Clarence C. Brooks, of New Jersey. Harry H, Bell, of New Jersey. . Col. Arthur William Vanaman, A01!)506, Lewis Clark, of Alabama.· John Q. Blodgett, of Rhode Island. Air Force of the United States (lieutenant EdwardS. Crocker 2d, of Massachusetts. Mrs. K atherine W. Bracken, of Florida. colonel,. U. S. Air Force) . · Paul R. Josselyn, of Iowa. William L. Brewster, of Texas. Maurice J. Broderick, of New York. Brig. Ge:a. Bry~ nt LeMaire Boatner, Austin R. Preston, of New York. A017123, Air Force of the United States Joseph C. Satterthwaite, of Michigan. Miss Lora C. Bryning, of Washington. Rolland H . Bushner, of Oklahoma. (major 'u. S. Air Force). · · George P. Shaw, of California. Brig. Gen. Frank Fort Everest, A017145, Howard H. Tewksbury, of New Hampshire. James M. Byrne, of New York. Charles C. Carson, of Mississippi. Air Force of the United States (major, U. s. From For eign Service officers of class 3 to Air Force) . ' Foreign Service officers of class 2 : Wilbur P . Chase, of Ohio. George M. Abbott, of Ohio. Keld Christen sen, of .Iowa. Brig. Gen. Truman Hempel Landon, Garret G .- Ackerson, Jr., of New Jersey. Edward W. Clark, of New Jersey. A017268, Air Force of . the United States Ware Adams, of Georgia. · Bruce R. Crooks, of New ;Jersey. (major, U. ·s. Air Force). John B. Crume, of Kentucky. Walworth Barbour, of Massachusetts. To be brigadier generals William N. Dale, of New York. Jacob Beam, of New Jersey. If. Rodger P. Davies,. of California. Col. Robert Chapin Candee, A04678, United Sidney H. Browne, of New Jersey. Alexander J. Davit, of Pennsylvania. States Air Force. ' DuWayne G. Clark, of California. Richar!;i C. Desmond, of Massachusetts. CoL Rosenham Beam, A05167, United John Davies, Jr., of .Ohio. Dwight Dickinson, of New Jersey. · · States Air Force. Allan Dawson, of Iowa. Donald P. Downs, of Nevada. Charles H. Derry, of Georgia. Col. ·Hugh Whitt, A09556, Air Force of the Thomas J. Duffield, Jr., of Massachusetts. United St.ates (lieutenant colonel, U.. s. Hooker A. Doolittle, of New York. Enoch S. Duncan, of Tennessee. C. Burke Elbriqk, of .Kentucky. · Air Force). · · Paul F. DuVivier, of New York. Col. · Joseph Vincent de Paul · Dillo11, Wilson .C. Flake, of North Carolina. · Cornelius J·. Dwyer, of New York. Raleigh A. Gibson, of Illinois. · A012836, Air · Force of the United States . David I. Ferber, of Arizona. (lieutenant colonel,' U. 's. Air Force). Franklin'_C. ·Gowen, pf Pennsylvania. Arthur D. Foley, of Michigan . . Benjamin M. Hulley, of-Florida. William H. Friedman, of-MJ,ssouri. .Col. -Roscoe Charles ' Wilson, A017120, Air J. W~sley Jones, of Iowa. Chat:les Gilbert, of New York. Fore!'! •of the United States (major, U. S. Air Kenneth C. Krentz, of Iowa. Richard M; Herndon, of Pennsylvania. Force). · Charles W. L.ewis, Jr., o{ Michfgan . . Martin •F. Herz, of New York. Col. Paul Thomas Cullen, A017852, Air Cecil B. Lyon, of New Yorlt. Deane R. Hinton, of Illinois. F'orce of the Unite,d States (major, U. S. Air James S. Moose, Jr., of Arkansas. C. H. Walter Howe, of New Jersey. Force). '. Edward Page, Jr., of Massachusetts-;. John J. Ingersoll, of Pennsylvania. Col. Oliver Stant on Picher, A018009, -Air Avery F. Peterson, of J;daho. Walter C. Isenberg, Jr., of Wisconsin. Force of the United States (major, U. S. Air James B. Pilcher, of Georgia. - Thomas M.· Judd, of Maryland. · Force}. · Harold M. Randall, of Iowa. Ben D. Kimpel, of Arkansas. ·Col. Ralph Powell Swofford, Jr., A018026, Charles s. Reed 2d, of Ohio. Spencer M. King, of Maine. Air Force of the United States '

TO 'BE NURSE OFFICERS · "(EQUIVALENT :t'O THE 'Sfstent with the mamtenance of the strength The SPEAKER. Is there objecti-on to ARMY RANK OF MAJOR~ _, EFFECTIVE DATE OJ' and stabutty o! the United States."' the requ~st of tne .gentleman from ACCEPTANCE V.ery truly yours, Idaho? JoHN ANDREWs, Helen Beim · Margaret G. Arnstein There was no objection. Donna Pearce Lydia M. Zetzsche Clerk of the House of Representatives. Mary J . Dunn Mr. GOFF. Mr. Speaker; these are ENROLLED BffiL SIGNED strenuous days for aU of us, and for TO BE DIETITIANS (lDQUIVALENT TO 'THE AR!MY The SPEAKER. The Chair desires to RANK OF MAJOR), EFFEcTIVE DATE OF ACCEPT­ that very rea'Son :it ls well that we oc­ ANCE announce that, ,Pursuant to the authority casionally turn our thoughts to more granted him >-Qn · April 2, 194'8, he 'di-d on Clare B. Baldauf pleasant subjects. I can think of no Majorie J. Wood that ·day sign the following enrolled bill subject more restful for a brief day­ of the Senate: dream than trout 'fishing in our clear, S. 2202. An act to promote world peace and cold, mountain lakes of the Far West.- the general welfare, national interest, and This brings me to the fact that, for HOUSE OF REPRESENTATIVES foreign policy of the United States through the second succe-ssive year, the big Kam­ economic 1inan.clal, and oth.er measures nec­ loops rainbow trout from north Idah-o's essary to the maintenance of conditions Lake Pend Oreille, in my district, have TuEsDAY, APRIL 6, 1948 abroad in which fcee institutions may surviaw­ The House met at 12 <>"clock noon. strength and stabillty of the United StB:tes. trout division of the national fishing con­ The Chaplain, Rev. James Shera Mont­ test conducted by the Field and Stream EXTENSION OF REMARR;S . gomery, D. D., offered tbe following magazine. I refer you to page· 72 of the prayer: Mr. AUCHINCLOSS -asked and was April issue of this magazine, wb:ioch I hold given permission