January 22, 1.970 CONGRESSIONAL RECORD- HOUSE 737 {From the Arizona Republic, Jan. 18, 1970] Strong, calm in adversity, collected in the An article points up that, in today's sports face of shock. world, slanted accounts of games are not only SIGNOFP FOR "THE VACHER" allowed, but encouraged. This is irrefutably (By Dave Hicks) The "Vacher" would have appreciated that, so there is little need to add that the strong, true. "Sports today with .• .'' calm, collected came apart afterward, be­ What this is, is extremely and unforgive­ My God-with who? cause a man prefers to do his crying in ablybush. A telephone call at 3 a.m. jackhammers an private. Let this be said: Vache did not concur with icy wedge of disbelief into the overnight. Let me tell you how Bob Vache regarded this juvenile approach, simply because he was As effectively a.s a 45-year-old Tolleson himself professionally. a conscientious newsman who told it like native met a career rife with radio and tele­ it was. vision deadlines, unreality seizes the night "I'm not the most knowledgeable," he would say, "so L have to do it with prepara­ To him, or their, inescapably discredit, as if its absolute "air time" is 3 a.m. tion." someone or some few asked Vache to become The "Vacher" is gone. tnis sort of shill during his broadcasts for No, damnit, he's not, but yes, dammit, Whatever his adopted attack, the "Vacher" came to be, rightfully so, the acknowledged the Phoenix Sun. he is, and the tragedy is related until a re­ Do you know what he said: NO. luctant final accord with fact. best sportscaster in Arizona. And in the muddled hours that follow, an This did not materialize from his routine That simple, endearing gesture cannot be ethereal tape recorder, always slightly out daily broadcasts via radio and TV. Because adequately appreciated in this era when, as of reach, unwinds a decade of sharing hotel Vache always was engaged in a struggle to get TV Guide indicates, the club broadcaster is rooms, cab rides, sports tales, airplane small­ more air time, and if you knew him, this was a shill. talk, a deepness shared with few (if, indeed, never a selfish play to get more Vache before The "Vacher" never would have succutnbed any others), a mutual professional admira­ the public-just more sports. to that. tion a stronger personal esteetn. One timely and towering tribute to Vache He wa.s a self-admitted "14th man on a Bob Vache, of course, would condemn the (there was forever the problem of ma-king 14-man Tolleson basketball squad" way back maudlin. that come out, in print and TV-radio on when few people were granted the privilege Knowing that, one would congratulate the road a.s Vash-a, rather than Va.sh), crops of getting close to this someone special. himself, in retrospect, that during a 3 a.m. up, ironically, in TV Guide for the week Jan. "Sports today with ..." telephone call he sounded merely aghast. 17-23. My God-with who?

HOUSE OF REPRESENTATIVES-Thursday, January 22, 1970 The House met at 12 o'clock noon. ending June 30, 1970, and for other Miller, announced the Vice President and The Chaplain, Rev. Edward G. Latch, purposes." Members of the U.S. Senate who entered D.D., offered the following prayer: The message further announced that the Hall of the House of Representatives the Senate agrees to the amendments of the Vice President taking the chair at Thou shalt remember all the way the the House of Representatives to Senate the right of the Speaker, and the Mem­ Lord thy God led thee.-Deuteronomy amendments numbered 4, 50, 51, and 56 bers of the Senate the seats reserved for 8: 2. to the above-entitled bill. them. Eternal God, who didst lead our fathers The message also announced that the The SPEAKER. The Chair appoints as to these shores that they may bring forth Senate agrees to the amendment of the members of the committee on the part of a just and a free nation, give Thy grace House of Representatives to Senate the House to escort the President of the to us their children that we may be ever amendment numbered 83 to the bill United States into the House spirit of unity shall love our country with portunity Amendments of 1967 and 1969 that Chamber: Senator RICHARD B. RUSSELL, undying devotion. set mandatory funding levels, including man­ datory funding levels for -the newly author­ of Georgia; Senator MIKE MANSFIELD, of Bless our President as he speaks to us Montana; Senator EDWARD M. KENNEDY, and to our Nation this day. Make him ized programs for alcoholic counseling and recovery and for drug rehabilitation, shall be of Massachusetts; Senator ROBERT C. wise with Thy wisdom, strong in Thy effective during the fiscal year ending June BYRD, of West Virginia; Senator HUGH strength, good through Thy goodness 30, 1970: Provided further, That of the sums ScoTT, of Pennsylvania; Senator RoBERT and may he lead us in the paths of appropriated not less than $22,000,000 shall P. GRIFFIN, of Michigan; Senator Mn.TON peace. be used for the family pla.nnin~ program." R. YoUNG, of North Dakota; and Senator Bless our Nation abundantly and make GORDON ALLOTT, of Colorado. her a blessing to all the peoples of the RECESS The Doorkeeper announced the am­ world. bassadors, ministers, and charges d'af­ In the spirit of the Pioneer of Life The SPEAKER. The Chair declares the faires of foreign governments. we pray. Amen. House in recess subject to the call of the The ambassadors, ministers, and Chair. charges d'affaires of foreign govern­ Accordingly Cat 12 o'clock and 2 min­ THE JOURNAL ments entered the Hall of the House of utes p.m.) , the House stood in recess sub­ Representatives and took the seats re­ The Journal of the proceedings of ject to the call of the Chair. served for them. yesterday was read and approved. AFTER RECESS The Doorkeeper announced the Chief The recess having expired, the House Justice of the United States and the As­ was called to order by the Speaker at 12 sociate Justices of the Supreme Court. MESSAGE FROM THE SENATE o'clock and 19 minutes p.m. The Chief Justice of the United States A message from the Senate by Mr. and the Associate Justices of the Su­ Arrington, one of its clerks, announced preme Court entered the Hall of the that the Senate agrees to the confer­ JOINT SESSION OF THE HOUSE AND House of Representatives and took the ence report on the disagreeing votes of SENATE HELD PURSUANT TO THE seats reserved for them in front of the the two Houses on the amendments PROVISIONS OF HOUSE CONCUR­ Speaker's rostrum. of the Senate to the blll Florida field. 'ro improve coordination against orga­ the world's best hope for liberty, for op­ permission to extend his remarks at this terminology you want to adopt--happen to Mr. TIERNAN. Mr. Speaker, I have be­ point in the RECORD, and to include ex­ be, in terms of complete membership in the come increasingly concerned lately over traneous matter.> group, men of Italian descent. But the total the path our Government has been Mr. FASCELL. Mr. Speaker, the Na­ membership, according to the best available traveling with respect to U.S. policies in tional League of Cities represents more estimate, is some 3,000 to 5,000 men. In any the Middle East. I refer specifically to than 14,600 cities throughout the United event, the bugaboo that this is a reftection the current debate over Secretary of on any single ethnic group nationally is non­ States. It enunciates its national mu­ sense. And that is one of the assumptions State Rogers' statement on December 9, nicipal policy at its annual Congress of that I hope you would adopt with me as we which alluded to certain proposals for Cities. Recently at its 46th annual con­ discuss this topic today. peace in the Middle East. Regrettably, gress, the league, for the first time, an- But the proposition that m u ch of that 742 CONGRESSIONAL RECORD- HOUSE January 22, ·1970 kind of myth reflects is the unwillingness has not been the case. It is interesting that kinds of facilities and programs available that has prevailed in many quarters, in­ the actual acts of violence are far lower than but if there 1s a failure of commitments on cluding your own, to acknowledge the exist­ the threats to use violence. Let me point the part of the Chief Executive at what­ ence of organized crime in this country. It something out. ever the appropriate level of government 1t is very interesting to note that, to the best In 1961, the Federal Government offered may be, there Will be no bonafide effort made of my knowledge, for the first time at the an anti-racketeering legislative program to to take advantage of such facilities or op­ recent International Association of Chiefs Congress. The then Attorney General Ken­ portunities. And it then becomes your re­ of Police Annual Convention, your Chiefs of nedy, testifying before a Senate Judiciary sponsibilities--collectively and individ­ Police went on record with declarations re­ subcommittee, was asked: "What have you ually-to see that these efforts are under­ garding the activity, existence, and the re­ done with people who are willing to coop­ taken. Municipal police forces are your police sults of the presence of organized crime in erate?" And he stated quite accurately: "We forces. this country. And they are your Chiefs of have changed their names, changed their There is no Federal police; we should not Pollee. identities, found them new jobs, moved them have one; we don't need one. The pollee in They were quite realistic in what they said and their families to totally new areas, in this country are competent to discharge their and I would commend to you the resolutions order to protect them." And that is com­ responsibilities but political leadership has which emerged. mendable. But what was the real point which the responsibility to undertake the commit­ There is a clear declaration at the Federal emerged? It was what the United States ments to do something in this field. Some level-a declaration of concern about the Government, with all of its power and au­ Mayors, interestingly enough, and in a per­ phenomenon of organized crime in this thority, had to do with regard to Joe Smith, fectly bonafide way, will respond with a country-in statutory form in June of 1968 cooperative witness, to protect him against denial on the question of whether there 1s with the pass&ge of the Omnibus Crime Con­ organized crime. Obliterate a man's identity, organized criminal activity in their jurisdic­ trol and Safe Streets Act. The act created tear ·him and his family up by the roots, tion. And if one examines the basis of the the Law Enforcement Assistance Admin­ change the manner in which he earned his denial, one can very clearly and fairly con­ istration to generally address the problem of living, and even move him out of the coun­ clude that the Mayor was perfectly honest in criminal justice in this country. In that stat­ try, exile him. I suggest then that one might his response, because he lacked the necessary ute, the Congress flatly declared there were well consider, under those circumstances, information to reach the opposite conclusion. two priority areas for activities: riot control­ where does the balance of power lie, if it One can understand that, but I am dubious civil disorders (and I hyphenate that) and takes all of that to protect a man who, was, that one should have to observe that for organized crime. And you may be interested in effect, a ward of the Federal Govern­ much longer. to note as financial managers-one of the ment? And then there are other situations, where, many responsibilities of mayors-that the Some suggested that the approach be when asked about the presence and activity concern of the Congress was expressed in changed at one point. Since exile was not of organized crime, there is a denial. While very concrete terms. The matching ratio desirable, people were being moved to mil­ one explanation may be actual, direct corrup­ requirements built into the statute are far itary reservations, like SAC bases, where you tion, another may well be that as soon as more favorable to encourage the development could walk for miles on concrete, protected the presence and activity of organized crime of anti-organized crime activity than in any by high wire fences, and a large German is acknowledged, someone invariably begins other area except civil disorders. shepherd. I don't find that a terribly de­ to ask: "Well, if we have it, what are you President Nixon and Attorney General sirable prospect. But I mention this to you doing about it?" And comes next election Mitchell have gone on the line in terms of to indicate what you are contending With time, there must be an accounting, so it the commitment of the National Adminis­ or what I hope some of you are contending becomes more convenient to deny rather than tration With regard to organized crime. I With and others Will be disposed to contend to affirm and undertake an affirmative pro­ don't come here a.s a partisan. I am talking with. We have for years and for generations gram to meet the needs. The principal of the documented record of interest and stated time and time again that law enforce­ strategy and the tactics accompanying the concern. It was expressed, despite budget ment-pollee, courts, corrections, but most attempt to achieve a strategic goal of elimi­ squeezes in other areas, by the request to particularly pollee-is primarily a local and nating or containing organized crime has Congress by the President and Mr. Mitchell state responsibility. That is the thrust of been what 1s characterized as "headhunting". for a supplemental appropriation to the Con­ the Omnibus Crime Bill, and it is the philos­ This is identifying a figure that intelligence gress for fiscal 1970 of an additional 25 mil­ ophy of this administration that efforts in reports disclose to be involved in organized lion to increase the Federal effort in the the field must, in fact, be conducted on a crime, attempting to develop evidence of a organized crime area. The terminology "strike partnership basis. violation of the law, then prosecution and force" may be familiar to some of you, par­ These partnership efforts are broad. Even incarceration. I think it was Professor G. ticularly those in the Buffalo area, the De­ the anti-racketeering strike forces are not Robert Blakely, Chief Counsel to Senator troit area, New York, and other major cities. to be an exclusive federal activity. Efforts are McClellan Criminal Laws and Procedure Sub­ The Strike Forces, which are regional anti­ now underway and Will be expanded, to in­ committee of the Senate Judiciary Commit­ racketeering team efforts at the Federal level tegrate state and local investigative agents, tee, who made an interesting point in this are being expanded to additional cities prosecutive personnel, and other support regard. He said that since development of the throughout the country. This should give people into the strike forces. I point to the intensive Federal effort, and the development pause to some of you or your colleagues­ effort underway In New York City. For the of some concomitant state and local inter­ that the Federal effort has to constantly ex­ first time, out of the Federal Organized est, more organized crime figures have been pand because there is a local failure to keep Crime and Racketeering Section come pros­ disabled through heart attacks, automobile abreast of the problem. ecutors; from the Federal investigative agen­ accidents, and death due to natural causes One can perhaps quickly describe the phe­ cies come supervisory level personnel; from than by the results of investigation and nomenon of organized crime in these terms: the District Attorneys offices of Mr. Hogan prosecution. A conspiracy ln most jurisdictions ls an un­ and Mr. Roberts, in Manhattan and the What can be done? What should be done? lawful agreement among two or more per­ Bronx, and from New Jersey and other states I respectfully commend to you at least this sons to do something. The agreement may come participating personnel. So, it is to be­ much-that you direct the chief operating not be unlawful In some jurisdictions but come a partnership where such 1s possible. officials of your police agencies, if they have the objective is unlawful. So it Is one or the In that regard, my own agency has a dis­ not already done so, to develop and main­ other. Either the agreement to do something tinct organized crime program division tain an on-going organized crime intelligence unlawful to achieve a lawful objective or an which has undertaken a national effort to unit, so that you will at least be informed. agreement to achieve an unlawful objective. develop training capabilities and provide ex­ In addition, you should direct that the per­ Conspiracy. pert information to local and state person­ sonnel involved in such activities be main­ Organized crime ls, in essence, a self-per­ nel, police agents, prosecutive officials, tained there and not spend two months in petuating criminal conspiracy, the objective judges, and hopefully, local elective officials. that program and the next 19 months on of which ls the acquisition of money by any We have had two separate training pro­ something else. We don't want a situation means, legal or illegal, including bribery and grams already, each of a week's duration, one of crisis response but rather an attempt to murder. In this society, as I think we can all in Illinois and one in Georgia, and I pro­ institutionalize rational responses. agree, the acquisition of money accomplishes pose to do one in the West of Southwest and What do you do With regard to the back­ something. And that is the acquisition of another in the Northeast. These efforts are grounds of the persons that you are, under power. And that is what organized crime is designed to develop the skills on the part of the law, able to appoint to positions in your all about. those local and state personnel who cur­ jurisdiction? As a matter of self-preserva­ Rich and Powerful. To those of you com­ rently lack them to work effectively in the tion, 1f nothing else, and I would hope that placent to organized crime--and where it organized crime field. We also are proposing it would be something more than that, you is particularly violent, a.s in the Northeast, the development of inter-state regional anti­ can encourage the development of a back­ and have tended to the view "what the hell, organized crime efforts. We have technical ground investigation procedure so you know it is just bad guys killing bad guys," I sug­ assistance, consultants, and in-house capa­ who the persons are that you are proposing gest you re-appraise your concept. It is not bllity available for activity anywhere in the to appoint, perhaps to the Board that con­ just a question of bad guys killing bad guys. country where there 1s an interest in de­ trols the issuance of your liquor licenses or If those were the only consequences, one veloping the kinds of units that will be ef­ handles zoning activities in your commu­ could look hopefully toward the revolution­ fective against organized crime. But there is nity, town or city. If you are not doing it, I ary demolition of the membership. But such a more essential question. One can have all suggest you should because the desirablity January 22, 1970 CONGRESSIONAL RECORD- HOUSE 743

I believe is clear. If you fail to assume the the importation of heroin is the province PATENT RIGHTS FOR EMPLOYEE INVENTORS responsibillty now, you will assume the of the hard core in organized crime-La Cosa (By Robert J. Kuntz, P.E., :first vice presi­ criticism later, whether you like it or not, Nostra or the Mafia. dent, California Society of Professional En­ if something goes wrong. At least those of But to indicate their "smarts" they are gineers) you as chief executives of the cities, and no longer responsible for the street-level dis­ The idea of a patent means many things perhaps all of you, have counsel available, tribution. They will bring it in, finance its to many people. Sometimes, it is good to whether it is the city solicitor or a town­ importation, and arrange the basic whole­ clinically examine the meaning of terms be­ ship attorney. Who among you or your col­ sale distribution. The story of the junkie fore proceeding with a concept. The World leagues have ever directed that your solici­ is as well known to you as it is to anybody Book Encyclopedia defines a patent as "an tor undertake a review of the ordinances in the Federal Government. And how the official paper issued by a national govern­ which govern your community under which junkie supports a habit? It may be prosti­ ment to indicate ownership · of property. you act to determine where there are de­ tution for a woman; it may be shoplifting The term letters patent, or simply patents, ficiencies with regard to the penetration into for men or women; it can be robberies or refers to the right to control the manufac­ your legitimat e business enterprises by burglaries, larcenies of an infinite range. ture and sale of a product. This monopoly, organized crime? I don't ask it rhetorically; But how are these things recorded in your limited in time and type, is given to the in­ I ask it in the hope that you will do so. The crime statistics? They are not recorded as ventor of a device, (YT a process, to reward kind of action undertaken by the Attorney organized crime activities. They are re­ him j(YT his genius." The World Book fur­ General in Florida, an anti-trust type law corded as street crimes. When you look at ther relates that "France adopted its first suit, is the kind of thing that could serve the descriptions, for example, in Harlem patent legislation in 1791. It believes that the as a model at the local level. There is no in New York City and you look at the enor­ patent law should be based on the idea that mystiqu..: in this. It is a question of putting mous dollar loss due to the drug addicts, the inventor's right is a natural right." your lawyers to work in this capacity. But then I would suggest it is very obvious' what The founders of the U.S. Constitution were there is above all, I believe, two critically the connection is between organized crime aware of the dependence of a free society essential basic elements in this field: Num­ and street crime. on the creativity and genius of its people. ber one, the declaration, and number two, Let me ask those of you who are business As a result, the Constitution of the United the continuing commitment to the institu­ men: What does one do with a hi-jacked States gives Congress the power to enact tionalization of anti-organized crime efforts truckload of 100 cases of color television sets? on the part of the jurisdiction's chief execu­ laws relating to patents in Article 1, Sec­ The answer is that you or I don't know what tion 8, which reads: tive. Without it, the bureaucracy-and I to do with them. But they move, and they don't use that term in a bad sense-below "Congress shall have power-to promote move with no serious difficulties because one the progress of science and useful arts, by the mayor does not respond. But if they of the principle activities of high revenue find a sense of commitment, I believe they securing for limited times to the authors generation in organized crime is the fencing and inventors, the exclusive right to their will. The first level for that is the police of large volumes of stolen property. How does administration. Only with your declared respective writings and discoveries." it happen that a product being sold out of In each of the above references, atten­ commitment and effort to continue that factories in the Northeast appears on the commitment can you develop a consistent, tion is called to the emphasis given to the shelves of retail stores in the South before rights of the inventors. It is very plain to local response to the problem, which will the salesmen for the company have been into permit you w address the needs in your im­ see that the original intent of patent law the territory. It has to be very clear. Orga­ was to grant a legal right and monopoly to mediate jurisdiction and further permit you nized crime has better distribution channels to undertake cooperative activity with sister an inventor as a reward for his genius. Dan­ than the manufacturer of the particular iel Webster successfully prosecuted an in­ cities and towns within the state and perhaps product I am referring to. And by the truck­ outside it. fringement of Charles Goodyear's patent on I was interested when Dr. Cressey sug­ load. Those are not recorded as organized vulcanization over 100 years ago. Webster gested some thing to you about the study crime incidents. They are recorded, just as told the court: entitled "Wincanton." "Wincanton" has been the larceny of a television set on an indi­ "What a man earns by thought, study, and publicly identified by its own Mayor as Read­ vidual basis from your apartment or mine care is as much his own as what he obtains ing, Pennsylvania. It was a totally organized may be-as a street crime. And yet there is by his hands. It is said that by natural law, crime community and after a massive five a connection. the son has no right to inherit the estate of year Federal effort, the back of the rackets I came here to make a point I hope you his father or to take it by device. Invention, was broken in Reading. The racketeering will leave with, or at least question me about: as a right of property, stands higher than in­ boss-who was not of Italian extraction but The issue of commitment and whether you heritance or device, because it is personal happened to be of Russian-Jewish origin­ are prepared to make it; whether you are earning." was put into the penitentiary and a num­ prepared to direct your police agencies to Webster made special note of the per­ ber of others went to jail and the former respond to this problem of organized crime. sonal ownership of invention. police chief who had been indicted for per­ There are a variety of opportunities · avail­ Many other documents illuminate the in­ jury but became a government witness was able that have never been available before. trinsic nature of patent rights, the least of out of office, and a reform element was It has been said that every idea has its time. which is not the "ethics for engineers" elected. And the follow-up survey of the Those of us who have worked in organized (Canons of Ethics, Creed, Rules of Profes­ citizens of Reading established that they crime enforcement over the years have been sional Conduct) . Rule 24 states: were very happy not to live under the or­ delighted because we believe that this is the "A customer, in designing apparatus, does ganized crime cloud, not to have to pay for time to start making legal progress. But the not acquire any right in its design, but only the things they were entitled to get as citi­ question is not whether 200 or 300 or 600 the use of the apparatus purchased. A client zens. But they raised one small concern. people working at state and local and Fed­ does not acquire any right to the ideas de­ The consensus of the majority polled was eral levels alone are going to get this job veloped and plans made by a consulting that after the effort which has disclosed the done. Either those who are political leaders engineer, except in the specific case for which terrible corruption-that principally illegal in this country are going to generate the they were made." gambling revenues had engendered-the response or we will face a time when the It must be noted that the rule specifically populace felt that they would like to have problem will become so impossible to deal mentions "consulting engineers", however, a little gambling. with we may not even be able to identify it this is the only reference made to the rights I suggest to you that a little gamblip.g is any longer. of inventors in the Code. If engineering is a like being a little bit pregnant. One element true profession, then every engineer is a con­ often lost sight of by those wrestling with sultant. An engineer-employee should be the terrible public concern-and in some PATENT RIGHTS FOR EMPLOYEE considered as practicing on the basis of a cases hysteria--over street crime, is the con­ retainer. The practice and ethics of the pro­ nection between organized crime and street INVENTORS fession should not change with the nature of crime. Those of you whose cities have a hard the New York Times article of yesterday For a welfare family headed by a woman Korean war period, it is almost incon­ which reports on this bizarre proposal. with five children, the allowance would mean ceivable that anyone could be advocating The article follows: at least $3,000 a yea.r. If she worked, she additional programs costing $10 billion MCGOVERN OFFERS PLAN ON POVERTY: SEEKS would be allowed to keep her entire income. Under Mr. Nixon's proposal, an employed in the first year and $35 billion in 1976. U.S. GRANT OF $50 A MONTH FOR EACH family with marginal earnings would keep After participating in Senate actions CHILD (By Deirdre Carmody) the first $720. For every dollar earned above that have reduced revenue available to that, the minimum Federal payment of the Federal Government, Senator Mc­ Senator George S. McGovern proposed last $1,600 a year would be reduced by 50 cents. GoVERN is now proposing huge additional night that the Federal Government give par­ Therefore, a family earning $2,000 would re­ expenditures which would fall into that ents an allowance of $50 to $65 a month for ceive $960 in Federal funds. each child in an attempt to eliminate so-called uncontrollable category, whose poverty. ALLOWANCE SCHEDULE costs we have found so difficult to accu­ The allowance would be given to every Under Mr. McGovern's plan, the present rately predict. child in the country regardless of the fam­ $600 tax exemption for each child (soon to The national security implications of ily's income level. be raised to $750) would be eliminated. The Senator McGovERN's proposal are irre­ In a speech prepared for delivery at the children's allowance would be taxed. How­ sponsible and frightening. To finance his 25th anniversary dinner of the Citizens' Com­ ever, not until a family's income was well program, Senator McGovERN would cut mittee for Children at the Biltmore Hotel, over $25,000 would the benefits of the allow­ the defense budget by $50 billion. Secre­ the South Dakota Democrat critized Presi­ ance be canceled out by the loss of the exist­ dent Nixon's welfare reform proposals and ing income tax exemption, which it would tary Laird has already announced addi­ outlined his own program, which he said he replace. tional defense cuts which will bring the would submit to Congress early this year. The details have not been completely Nixon administration's defense spending !vir. McGovern, who is chairman of the worked out, but Mr. McGovern presented this $10 billion below the Johnson adminis­ Select Senate Committee on Nutrition and tentative schedule for a family with one tration projections for fiscal year 1971. Human Needs, is the first Democrat to pre­ child: This is responsible budget cutting that sent a major alternative program. Last week, A family with an income of $3,600 a year will not endanger our national security. Robert H. Finch, Secretary of Health, (which would be tax free) would receive $600 But the $50 billion cut Senator Mc­ Education and Welfare, criticized liberal more annually. A family with an income of Democrats for their silence. $4,000 to $6,000 would receive benefits of GoVERN is reported to be advocating At a news conference preceding the din­ $420; with an income of $10,000 to $15,000, would not even enable the Department ner, Mr. McGovern was asked if his program benefits of $360; with an income of $20,000, of Defense to meet the past commitments was a distant trumpet heralding his entry benefits of $300; with an income of more made during the Kennedy and Johnson into the 1972 Presidential race. He replied: than $45,000, there would be no benefit. administrations. "I don't want it to be a distant trumpet. I "Yet--though not a poverty program-the Mr. Speaker, I am on record in favor would hope that it will be a contribution to Children's Allowance would prevent a great of cutting the defense budget and re­ a genuine national debate that will bring re­ deal of poverty simply because so many chil­ sults in 1970." dren are poor," Mr. McGovern said. "It ordering our national priorities. But would in fact, very nearly wipe out poverty responsible budget t1imming is one thing; Mr. McGovern's main criticism of the President's Family Assistance Program to among most families with children. It would dismantling the Defense Department 1s provide aid for 10 million of the working also provide a critical boost in the incomes quite another. And that is just what we poor is that, he said, it perpetuates poverty of those young middle American families of would have to do if we cut defense funds by isolating poor people and treating them as whom I have spoken." by $50 billion to finance the McGovern a group separate from the rest of the nation. "baby bonus." As part of his program, the Senator also Let me elaborate on the implications proposed a guaranteed job with a decent wage WORLD ENVIRONMENTAL LEGAL of the $50 billion defense spending cut for every able-bodied citizen of working age, AND RESEARCH CENTER ESTAB­ Senator McGovERN is reported by the improved Social Security benefits and a small LISHED federally administered public assistance plan (Mr. WRIGHT asked and was given New York Times to have advocated to for the few who would remain in need of finance his welfare plan. Of the current additional income. permission to address the House for 1 $77 billion of defense spending, $17 bil­ He estimated that the cost for a children's minute and to revise and extend his re­ lion is absolutely fixed and ea~ot be allowance would be $10-billion the first yea.r. marks and include extraneous matter.) reduced. Of that $17 billion, $14.5 billion The cost for the full program would come Mr. WRIGHT. Mr. Speaker, major is required to pay obligations incurred to $35 billion a year by 1976. good news was announced Tuesday by in past years, primarily during the Ken­ The Senator, a dove on the Vietnam wa.r the National Pollution Control Founda­ nedy and Johnson adm1nistmtions. I issue, has already suggested that the present tion, a nationwide organization with would assume that the Senator from war budget of $80-billlon could be cut by $50- principal offices at 866 United Nations billion without endangering national se­ Plaza in New York. South Dakota would not want the Gov­ curity. ernment to default on those obligations. Mr. Nixon's welfare proposals, which are This private group, which seeks to en­ An additional $2.5 billion is required to now before the House Ways and Means Com­ list the support of industry and individ­ pay retiremeillt benefits of the military. mittee, are estimated to cost $4.2-bllllon ual citizens in providing useful and ef­ Can the Senator be advocating a reduc­ above the $4-blllion cost of the present wel.. fective support for the Nation's battle tion in those benefits? fare program. against environmental pollution, an­ That leaves $60 billion which might Mr. McGovern had some words of praise nounced the establishment of a World January 22, 1970 CONGRESSIONAL RECORD- HOUSE 749 Environmental Legal Data Bank and the eloquence of Thomas Jefferson in the fight constantly, until death comes to us, to drafting of our own Declaration of free Cuba from communism. Research Center. "The fundamentals of this resolution for The foundation already has enlisted Independence. freedom are: the law professors from some 35 uni­ I commend these principles to all who "First. God Almighty, above all things, in versities and the American Bar Associa­ seek the restoration of a free government whom we believe as the essence of life. tion in the program to create a com­ in Cuba. I commend these eternal prin­ "Second. The fatherland, with all of its puterized data center at Pittsburgh, ciples to the executive branch of our laws, traditions, customs, and history as a where information concerning all State Government, to the Congress, and to our spiritual value, only surpassed by the concept and Federal laws relating to all forms of fellow countrymen. of G<>d. Let us together determine that we shall "Third. The family, as the cornerstone of pollution, including abatement ordi­ the human society. nances in American cities and towns, will hasten the day when a government dedi­ "Fourth. Human rights, for each and every be available to lawmakers, businesses, cated to these immortal principles shall citizen, regardless of race or creed. and private citizens. again govern the great people and the "Fifth. The law, as the foundation for the This data bank already has begun lovely Isle of Cuba. proper development of the human society. operation under the direction of Dr. Mr. Speaker, I include my resolution­ "Sixth. Democratic government, with its John Horty, president of Aspen Systems House Joint Resolution 294-in the three independent branches: Legislative, ex­ Corp., and has been hailed by Dr. RECORD: ecutive, and judicial. H.J. RES. 294 "Seventh. Representative democracy, Richard A. Prindle, Assistant Surgeon through the exercise of universal sufirage, General of the United States. Joint resolution commending the Cuban periodically, free, and secretive, as the ex­ Additionally, a worldwide research cen­ "Declaration of Freedom" pression of popular sovereignty. ter will be established at the University Whereas on January 23, 1966, a "Declara­ "Eighth. Freedom of worship, freedom of of Texas Law School in Austin under tion of Freedom" was adopted by one thou­ teaching, freedom of the press and free the direction of Dean Page Keeton. Many sand five hundred Cubans in exile meeting enterprise. in Key West, Florida; and "Ninth. Private property and ownership, as American law schools, as well as the Whereas this declaration was written at the the basic expression of liberty. University of Toronto in Canada, are San Carlos Club from which the great Cuban "Tenth. The improvement of living condi­ cooperating in this endeavor, and sev­ patriot, Jose Marti in 1898, turned the course · tions for both rural and city working masses, eral years of legal data research in Eu­ of history by proclaiming the ideological basis with the just and necessary measures, keep­ rope will be incorporated in the data of a free Cuba; and ing in mind the legitimate interests of both bank. Whereas Cuba once again has fallen victim labor and capital. This announcement was made in to a totalitarian regime as embodied by "Eleventh. The derogation and eradication Washington by Edgar Shelton, Jr., a Castro communism; and of anything which is opposed to the political Whereas the "Declaration of Freedom" and religious fundamentals aforementioned, long-time personal friend and former reads as follows: and specifically, the abolition of communism classmate of mine from the University "In the city of Key West, Monroe County, and any other form of totalitarian manifes­ of Texas. Along with Max N. Edwards, State of Florida, United States of America, tation. former Assistant Secretary of Interior we, the Cuban exiles in the United States, in "Signed and sealed in Key West, Fla., on for Water Quality and Research, who the name of God Almighty, and speaking the 23d day of January, 1966." will coordinate these endeavors and is­ both for ourselves and the oppressed people Now, therefore, be it in Cuba, the martyr island, do say: sue a monthly environmental law report, Resolved by the House of Representatives "That on January 1, 1959, the slavery yoke (the Senate concurring), That it is the sense Mr. Shelton has been working for some that came from Europe and was extinguished months 1n helping to organize this major of the House of Representatives that this in­ in Cuba at the end of the nineteenth cen­ spiring declaration should be patriotically undertaking. tury, was resumed. considered by all Cubans in exile and by all It provides for all of us, I think, a "That those responsible for this high trea­ who wish to end the tyranny of Castroism heartening assurance of the growing in­ son to our fatherland and to our people are and communism in Cuba and that the "Dec­ terest and dedication in both the aca­ just a score of traitors who, usurpating the laration of Freedom" should serve to unite demic community and the business com­ government of the country have been acting those pledged to restoring Cuban liberty and munity toward the massive effort which as mercenary agents for the Sino-Soviet im­ independence, and that it should be the ob­ perialism, and have surrended to that im­ jective of the United States to commend and all of us recognize as commanding the perialism our freedom and our dignity, also first priority-the necessity to reverse encourage recognition and respect for the betraying the American hemisphere. declaration. the deadly poisoning of the human en­ "That as a consequence of this high trea­ vironment in this country. son, those who are usurpating the power in Cuba (as they were never elected by the po­ ple) , are imposing a regime of bloodshed, THE :v.tiDDLE EAST CUBAN DECLARATION OF FREEDOM terror and hate without any respect or con­ sideration to the dignity of the human being (Mr. PEPPER asked and was given and any further program may be an­ Mr. BRINKLEY. Mr. Speaker, in 1955, permission to extend his remarks at this nounced later. point in the RECORD and to include the as an Air Force pilot, I flew in to Wheelus Mr. Speaker, will the gentleman text of a resolution.) Field in Tripoli, Libya, North Africa. I yield further so that I may make a state­ wrote home that it was "the Florida to Mr. FASCELL. Mr. Speaker, the situa­ ment? tion in the Middle East today is the worst the south" of Rhein-Main Air Force Base Mr. GERALD R. FORD. I yield to the it has been since the June 1967 war, and where I was TDY to a NATO assignment. gentleman from Oklahoma. it is deteriorating every minute. In my The people there were not our friends. Mr. ALBERT. Mr. Speaker, I would judgment, the grave crisis there threat­ They are not today. also like to advise Members that after En route over the ocean called the Med­ ens the peace and security of the world. consulting with the distinguished minor­ As a member of the House Foreign Af­ iterranean Sea we monitored Jerusalem ity leader it has been decided that the fairs Committee I have repeatedly urged Airways. Israel was our friend then. It Lincoln Day recess will be from the close _the administration, through the State is our friend today. of business on Tuesday, February 10, Department, to exert its leadership to France recently refused delivery of 50 until Monday, February 16. bring about a peaceful solution in the Mirage jets which Israel had bought and Mr. GERALD R. FORD. Mr. Speaker, Middle East. It is my strong belief that paid for. France today sells 100 of these would the gentleman from Oklahoma there can be no imposed settlement; sophisticated jet fighters to revolution­ clarify the latter statement? We would rather, the United States must be pre­ aryLibya. go into recess from close of business on pared to exert its influence in order to What say we on a balanced approach? Tuesday, February 10, and we would re­ bring about face-to-face negotiations be­ What shall we urge upon our Secretary sume business on Monday, February 16? tween Israel and the Arab States. Fur­ of State? Mr. ALBERT. Mr. Speaker, the gen­ ther, we must recognize that Israel As for me, I say let us recognize that tleman is correct. should not be required to give up a single our self-interest lies with Israel. We PARLIAMENTARY INQUIRIES inch of territory as a precondition to should no more be neutral than Russia is Mr. GERALD R. FORD. Mr. Speaker, negotiations. neutral. a parliamentary inquiry. In the con­ With these facts in mind, I have today The very term, "negotiation," implies sideration of the Nelson amendment, introduced a resolution calling on the the having of some room to give. Thus, which was an amendment in disagree­ United States to exert its influence and in order that the final agreement between ment, when it comes back, will there be efforts in order to promote such face-to­ Israel and her hostile neighbors be just, 1 hour of debate in the control of the face negotiations between the State of the first proposals certainly should in­ chairman of the committee or the chair­ Israel and the Arab States with no pre­ corporate every item favorable to Israel. man of the subcommittee? conditions. We must work in this direc­ So that those negotiations may be The SPEAKER. The Chair will state tion if we are to achieve a meaningful fruitful, the United States must guaran­ in response to the parliamentary inquiry and lasting peace in the Middle East. tee that Israel bargain from a secure that any Member who makes the motion However, in order for such negotiations positicm, uneroded by the fickle French. will be entitled to 1 hour, and the ques­ to be meaningful, consideration should be tion of the allocation of time will be in given to Israel's right to exist as a nation LEGISLATIVE PROGRAM FOR WEEK his discretion. and respect its territorial integrity; guar­ OF JANUARY 26 Mr. GERALD R. FORD. One further antee freedom of navigation by Israel and parliamentary inquiry, Mr. Speaker. The all other nations through the Suez Canal President Eisenhower to make our Na­ nize this truth and depend on us to ac­ Mr. RARICK. Mr. Speaker, most Amer­ tion's Capital a model and an outstand­ cept our responsibility. icans awaited the state of the Union mes­ ing example of the good to be accom­ plished by desegregating the public sage with the sincere hope that it would FIGHTING CRIME contain the dynamic expression of lead­ schools. It certainly has become an ex­ ership for which the "silent majority" ample-one to avoid at all costs. The SPEAKER. Under a previous order have long been ready. Unfortunately, the As a direct result of such integration, of the House, the gentleman from Texas carefully prepared and rhetorical pres­ the public schools of the District are 94.3 May 1969. 3-year sentence; Daniel J. Motto, President of ~;~ Resigned during period. July 1, 1967-De­ e Bcame Chief, Civ. Div. March 1968. Local 350 of the Bakery & Confectionary cember 15. 1969. '1 Became Asst. Chief, Civ. Div. March 1968. Workers Union, received a 2-year sentence: January 22, 1970 CONGRESSIONAL RECORD- HOUSE 753 Henry Fried, who controlled construction and buy drugs. The addict, once hooked on the "rented" to be used as collateral as well. Dis­ other companies doing many milllons of dol­ habit and unable to obtain any drug or sub­ covery is impeded by the lack of a central lars of business annually with New York stitute legally, is in virtual peonage to the data bank available to ordinary bank officers City, received a 2-year sentence; and Marcus syndicate. to check the serial numbers of missing or received a 15-month sentence. The convic• In dealing with this tragic picture Federal counterfeit securities. Disposition of stolen tions were affirmed on appeal. law enforcement has concentrated on seek­ securities is also facllltated by the fact that In United States v. Carmine DeSapio, et al., ing to bring to book the organized elements many of them are originally made payable to both DeSapio, former New York County who provide the source of illicit drugs. whoever is the bearer. Convictions in three Democratic Chairman, and Antonio "Tony During the period covered by this report, cases, United States v. Izzi, United States v. Ducks" Corallo, were convicted of use of a total of 443 narcotics offenders were con­ Von Zamjt, United States v. DiLorenzo, grew Interstate facilities in connection with the victed in this District. out of the transportation on January 25, bribery of former Water Commissioner James The largest single narcotics shipment ever 1967 of 2600 shares of stolen IBM stock worth L. Marcus. In addition, DeSapio was found uncovered was involved in United States v. $1,038,700 from New York, where they had guilty of conspiring to bribe Marcus and to Desist, et al., in which 209 pounds of pure been stolen from a firm of stock brokers, to obstruct interstate commerce by extorting heroin worth approximately $25 million on Gettysburg, Pa., where they were utilized in construction contracts and scrap metal from the illegal market was shipped into the coun­ the continuation of a fraud which cost two the Consolidated Edison Co. of New York. try in a freezer unit. One of the proposed insurance companies over $2.4 million and • • • • buyers was Frank Dioguardi, who was con­ eventually threw them into receivership. 2. Labor Racketeering victed along with four other defendants. Dur­ • • • • • The evil activities of organized crime in ing the period covered in this report, the con­ In United States v. Cataldo, et al., six de- the labor field include (a) obtaining funds viction of the defendants and the sentences fendants were convicted in a case involving from employers through extortion, (b) sell­ including terms of 10, 15 and 18 years, were conspiracy to transport in interstate com­ ing out the interests of employees in ex­ affirmed by the Supreme Court of the United merce portions of $500,000 in securities stolen change for bribes, and (c) embezzlement States in a decision holding that a ruling in November 1967 from a Los Angeles broker­ and misuse of union funds. These practices applying search and seizure rules to non­ age firm. TWo women who actually carried are inimical to the interests of both em­ trespassory electronic eavesdropping did not the securities to Florida. were murdered and ployers and employees and of the public. apply retroactively. Jack "Murph the Surf" Murphy and Jack In United States v. Jack McCarthy, the A major problem in large-scale narcotics Griffith were convicted of the murder of one defendant, named by the McClellan Com­ conspiracy cases has been that one or more of them. Through an associate of Murphy's mittee as a notorious labor racketeer, was defendants frequently jump bail and become the securities came into possession of a de­ tried and convicted for filing a false union fugitives while the cases are awiting trial. fendant who mailed them to another de­ officer report with the Department of Labor. One reason for this is that the penalty for fendant in New York. The charge centered around the fact that bail jumping is less than that for more seri­ In United States v. Potenza, et al., United during the period that McCarthy was sup­ ous substantive narcotics offenses, and the States v. Spgnuolo, et al. and United States posed to be representing the interests of his defendants often hope that witnesses to the v. Cervino, et al., 22 defendants were con­ union, Local 1430 of the International basic offense will be unavailable for a sec­ victed on pleas of guilty to charges involv­ Brotherhood of Electrical Workers, he was ond trial or afraid to testify. ing transportation of approximately $425,000 also receiving substantial income from Na­ United States v. Armone, et al., involved of American Express travelers checks stolen tional Consultants Associated, Ltd., a two­ $120 million in narcotics, and the conviction from John F. Kennedy Airport, although a man labor consulting firm which represented of several defendants were reported in the principal witness was murdered prior to trial. the interests of management. previous report. Four defendants who TWo defendants are fugitives and a third has In United States v. Jack Cohen, the con­ jumped ball were tried and convincted for been hospitalized. viction of a former President of Plumber's bail jumping and also for the basic nar­ In United States v. Farris, et al., two de­ Union Local 1 for accepting 11legal employer cotics offenses during the period covered by fendants were tried and convicted for inter­ payments was amrmed. this report. state transportation of approximately $225,- In United States v. DiBrizzi, the convic­ A major feature of many narcotics investi­ 000 worth of stolen securities. They were tion of an International Vice President of the gations is the use by the defandants of for­ arrested when they attempted to sell the International Longshoremen's Association eign secret accounts to hide their use and securities to an undercover agent in New for embezzlement of union funds was af­ distribution of funds. For example, in United York. Farris was sentenced to a term of eight­ firmed. States v. Hysohion, et al., two defendants een months imprisonment and Mainer re­ In United States v. Silverman, the Presi­ were convicted and received 30 year sentences ceived three years; both are now serving dent of Local 810 of the International after a 2¥.! year investigation into the im­ their sentences. Brotherhood of Teamsters was convicted on portation of heroin into the United States In United States v. Scandifia, the convic­ 16 counts of an indictment charging the in cans labelled as food products imported tion of defendant, an alleged murderer, for defendant with the illegal use of union from Spain. The proceeds were forwarded transportation of counterfeit bonds was af­ . funds in a political campaign and with mis­ through New York money brokers to anum­ firmed. While the trial in that case was tak­ appropriation of union funds for the de­ bered Swiss bank account. During one a­ ing place, Scandifia. committed further simi­ fendant's own use. week period $950,000 was processed in this lar crimes with which he was charged in a In United States v. Berger, et al., five manner. subsequent indictment. defendants were convicted in the first suc­ While two defendants who were convicted In United States v. Pergola, et al., three cessful prosecution under a statute pro­ were in custody, they arranged with another defendants have been convicted and one is . hibiting payment of kickbacks to obtain prisoner about to be released on bail to dis­ presently on trial for possession of $800,000 loans from labor-management welfare and pose of heroin in $50,000 lots. An elaborate in securities stolen from the mail. pension funds. system of communications was arranged with • • • • The payments were made to obtain a $1.5 this inmate, who was actually an informant, Secret foreign accounts are often used in million loan by the Central States South­ and with a. co-conspirator who was arrested con_nection With these crimes. For example, east and Southwest Area Pension Fund of for possession of two kilograms of heroin. A Umted States v. Bradford, et al., involved the International Brotherhood of Teamsters subsequent search of the location where the transportation of stolen Treasury bills to a to a near-bankrupt firm. The firm had issued arrest took place uncovered ten adGlitional Swiss bank. Although the Swiss bank refused a $135,000 check which was converted into kilograms in hollowed out portions of 200 to cooperate, the defendants were convicted. cash through a Bahamian Bank. ski poles imported from France the previous week . 5. Stolen Credit Cards • • • • • Many other substantial narcotics cases were The theft and subsequent fraudulent use Other indictments brought during the pe­ also successfully developed during the peri­ of credit cards is a. "growth industry" con­ riod and pending include charges of bribery, od, including United States v. Bennett, et al., trolled by organized crime. The mailing of extortion and kickbacks. In a number of ($22 million in heroin) (conviction affirmed untold numbers of unsolicited credit cards these cases, and cases set forth in the pre­ on appeal); United States v. Mitnik, et al. has greatly facllltated the theft of the cards vious report for 1967 (p. 14-16), a limitation ($6 million in heroin) and United States v. (a) by tremendously expanding the number on the effectiveness of enforcement is the Grandi, et al. ( $30 million in heroin) . available to be stolen from the mails, and fact that giving or taking of bribes to in­ In United States v. Rao, John Vincent Rao, (b) by creating a large number of card fiuence in union-management cases in vio­ "Counsel" to the Luchese Family, was con­ addressees who do not know the cards have lation of Title 29, United States Code, Sec­ victed of perjury before a Grand Jury inves­ been stolen. The victims of the thefts often tion 186, is only a misdemeanor and con­ tigating narcotics distribution by the Luchese are required to expend legal fees to prove viction does not disqualify the defendant Family and was sentenced to five years. they did not authorize expenses run up by from continuing to hold union office. • • • • • racketeers . 3. Narcotics Federal jurisdiction in cases involving 4. Stolen Securities stolen credit cards rests on the use of the Narcotics ·sales enable organized racket­ Thefts of securities and their subsequent mails or interstate facilities, and hence fed­ eers to utilize addicts as their agents to sale or use as collateral for loans are a major eral law does not reach many of the oases. commit the thefts, robberies and burglaries source of income for organized crime. In a The wide dissemination of unsolicited cards necessary to amass the monies required to modern variant, such securities may be creates a problem relevant to the Consumer CXVI-48-Part 1 754 CONGRESSIONAL RECORD- HOUSE January 22, 1970 Fraud Unit (see infra) as well as to the drive where they played a major role in the opera­ penalty than he had the power to impose against organized crime. tion of the Lucayan Beach Hotel Casino. Be­ and that the statute involved (Title 18, In United. States v. Confessore, et al., five tween 1964 and 1966 they were indicted on United States Code, section 215) was de­ defendants were convicted of mail fraud four separate occasions for violation of the ficient in failing to provide for more than a involving $700,000 obtained through use of federal wagering tax laws, the anti-racketeer­ one year penalty. 1,500 stolen blank Diner's Club credit cards ing statutes and the filing provisions of the and a stolen embossing machine. Three de­ income tax code. In early 1967 they were told * * * • fendants were sentenced to imprisonment to leave the Bahamas and later that year 9. Loansharking for two years, and one was placed on pro­ returned to New York where they were As part of the Truth-in-Lending Act, bation. The fifth defendant was murdered finally arraigned on the pending charges. In Congress enacted a Federal criminal pro­ between the date of conviction and the time November 1968 Courtney and Reed pleaded vision prohibiting extortionate loans. In of sentencing. guilty to conspiring to violat~ the anti­ United, States v. Shulman, the first prosecu­ In Unit ed. States v. Bonanno, et al., Salva­ racketeering laws and to the substantive tion under the law, the defendant was con­ t ore Bonanno and Peter Notaro were con­ violation of failing to file partnership returns victed of making $1,000 loans on which $4,- victed of conspiracy, mail fraud and perjury in connection with their bookmaking activi­ 400 in interest was collected, and threaten­ in connection with the use of stolen Diner's ties. Brudner is seriously ill and no date has ing violence to collect the loans. Club cards. been set for his trial. B. Role of foreign banking secr ecy In United. States v. Fincke, et al., three de­ In Uni ted. States v. Manfreaonia, the de­ fendants were indicted for charging $126,000 fendant was convicted of committing per­ In numerous instances use of secret bank in telephone calls through fraudulent use of jury while testifying on his own behalf dur­ accounts and fictitious corporations in a credit card. ing his trial where he was charged with Switzerland, Lichtenstein, the Bahamas and In United. States v. Davia Cohn, et al., violating the wagering tax statutes. The other foreign locations have been used to twenty-five defendants were indicted for a Court of Appeals reversed the wagering tax conceal criminal activities. I testified on two theft of $400,000 in blank American Express conviction, but the perjury conviction was occasions on this subject before the Commit­ travelers checks, of which $300,000 were affirmed. In its opinion the Second Circuit tee on Banking & Currency of the House of cashed by a syndicate using forged American rejected Manfredonia's argument that the Representatives, in 1968 and again in 1969. Express cards. Two defendants were sen­ Government was estopped from proceeding Some of the more significant prosecutions in tenced to five years each; others are awaiting against him on perjury charges once hm this area follow. trial. original conviction had been reversed. In United. States v. Coggeslulll & Hicks, et These federal prosecutions represent a In United. States v. Covello, the convictions aZ. the brokerage firm of Coggeshall & Hicks, substantial impact on syndicate operations of three defendants for illegal bookmaking its senior partner, the heads of its Geneva using credit cards, but so long as the flow activities utilizing interstate instrumentali­ office and Foreign Department, and other em­ of unsolicited cards continues unabated it ties were affirmed. One defendant had been ployees were convicted of violating Federal wlll continue to be difficult to deal with this sentenced to 3 years and two to six months Reserve Board margin regulations by arrang­ problem, which may well expand rather than each. ing for employees and customers of the firm In United. States v. DeZZo-Russo, et al., con­ to trade $20,000,000 worth of stock illegally contract in scope. through secret numbered Swiss bank ac­ 6. Hijacking victions of close associates of Sam De­ Cavalcante for interstate gambling activi­ counts. Under this scheme customers for the Armed robbery and hijacking of trucks ties were affrmed. brokerage firm would obtain loans from the is likewise a major source of income for Arzi Bank of Zurich, Switzerland and specu­ organized racketeers. 8. Infiltration of Legitimate Business late in the securities market. Customers' In United. States v. Baglino, et al., United. A number of cases illustrate our efforts to identities and potential tax evasion were con­ States v. Calarco, et al., and United. States prosecute abuses of legitimate channels of cealed by placing all orders on the books of v. Acunto, et al., 22 defendants were con­ trade for illegal purposes. the firm in the name of the Swiss bank. victed of conspiracies to hijack interstate Such abuses may often involve the m;e of Coggeshall and Hicks received the maximum shipments and actual hijacking of 7 trac­ foreign banking secrecy. They a.Iso involve $50,000 fine for participating in and encour­ tor-trailers carrying $500,000 in goods dur­ transfers of large amounts of cash, which aging these margin violations. The 5 individ­ ing a period of three months and using by its very nature is generally most difficult ual defendants were sentenced to pay fines dangerous weapons. The convictions of six to trace. Thus, in United. States v. Swinson, exceeding $50,000. The Arzi Bank also pleaded defendants were recently affirmed, one ap­ after being given immunity and ordered to guilty. peal was dismissed and the appeals of three answer, the defendant falsely testified con­ In United. States v. Orovitz, a former Treas­ defendants are pending. cerning the exchanging of several hundred urer of General Development Corporation, a In United. States v. Maccarai, et al., 15 de­ thousand dollars in small bills for $100 bills. Florida land firm, was convicted of failure fendants including a high associate in the He was convicted on a plea of guilty. to file required "insider" reports with the Carlo Gambino family were convicted in a In United. States v. Dioguarai, et al., John Securities & Exchange Commission on a sale fur hijacking ring and were sentenced to "Johnny Dio" Dioguardi (a number of the of $250,000 in General Development bonds terms ranging from 2 to 10 years. In United. Luchese family), Thomas Plumeri, -David which had been held in the name of a Swiss States v. Del Purgatorio, a major bookmak­ Perlman and First National Kosher Provi­ bank. A total of $500,000 in such bonds was ing figure in the Bronx was convicted in a sions, Inc. were convicted of bankruptcy held in the name of the Swiss bank at the hijacking conspiracy and sentenced to two fraud. The convictions centered around the defendant's instructions. The defendant ad­ years. looting of the assets of a bankrupt delicates­ mitted at the trial receiving $50,000 in cash 7. Organized Gambling sen and kosher provisions manufacturer, from the Swiss bank in the mail but allegedly Consumer K~her Provisions, Inc. Dioguardi did not know the details of the origin or The largest illegal gambling prosecution received a sentence of five years. purpose of the funds. ever brought in the District resulted in the In United. States v. Marino, et al., seven In United. States v. Hayutin, et al., the conviction of two defendants in United defendants were convicted of conspiracy to Government proved that defendants sold States v. Marquez, et al. for operating a obtain $1,350,000 from businessmen who unregistered stock of a company in which policy racket taking in $100,000 per day in were falsely told the money was needed to they were insiders to the public by deliver­ bets. The defendants were sentenced to five obtain Cadillac distributorships. When re­ ing the shares to a bank in Munich which and three year terms, respectively. At the funds were requested, threats of death were in turn sold them through brokerage firms time of their arrests, a total of more than used to seek to silence the victims. The sen­ where it had accounts. The proceeds of the $15,000 in cash, together With gambling tences in the case included one of 77':1 years sales were then mailed to insiders in the records, were found in their automobiles. and four other prison sentences. United States in $5,000 and $10,000 sums in While on bail pending appeal, Marquez was In United. States v. Raaochia, a Suffern car envelopes falsely marked "securities." The rearrested for subsequent illegal gambling dealer was convicted of his part in a $680,000 convictions and prison sentences were af­ and extortion. bank embezzlement. Operating through his firmed on appeal. In United. States v. Bell, a conviction was co-defendant, the trusted Treasurer of a In United. States v. Laurence, et al., an in­ obtained against a major numbers operator small Suffern bank, insured by the Federal dictment filed in March, 1969, six defendants for evasion of $14,000 in taxes on income Deposit Insurance Corporation, Radochia are charged with selling unregistered stock from gambling. In United. States v. Longo, overdrew his account with countless checks. of VTR, Inc., a company listed on the Ameri­ a conviction was obtained against one de­ The overdrafts were covered with the con­ can Stock Exchange, by placing 85,000 shares fendant for conspiracy to defraud the gov­ nivance of the bank official who falsified in Swiss and German banks for sale on the ernment of taxes on the cashing of $1 mil­ bank records. Radochia and his co-defendant exchange while trading the stock through­ lion of "Twin Double" racetrack tickets; were both convicted, and Radochia received out the United States, Europe and the Far trial of other defendants is pending. An in­ a five-year prison sentence. East. A Liechtenstein Trust was used in dictment was obtained for similar viola­ In United States v. Benigno, et al., five of transferring the stock to the German bank. tions in United. States v. Lombaraozzi. six defendants were convicted of causing a United States v. Houston Oil Field Ma­ In United. States v. Max Courtney, Frank bank official to accept payments to influence terial Co., et al., charges that the Houston Reea ana Charles Bruaner, defendants suc­ loans. In connection with the sentences of Oil Field Material Co. (HOMCO), now known cessfully operated one of the most lucrative two of the defendants to terms of imprison­ as International Systems and Controls, vio­ bookmaking syndicates in the United States ment, Judge Edmund L. Palmieri stated on lated the margin requirements of the Federal until their departure for the Bahamas in 1964 the record that the offense Justified a greater Reserve Board in purchasing a substantial January 22, 1970 CONGRESSIONAL RECORD- HOUSE 755 interest in Holly Sugar Corp., a much larger­ treatment, in one case, because the patient uals. Default judgments are then entered firm, by obtaining over $1 million worth of would soon die, and in another, because he with such results as the executions of in­ }Iolly stock for only about $300,000 in cash. would end up in a wheelchair shortly. Pa­ come and attachments of property. Since the The scheme was accomplished by purchasing tients who failed to pay for their "treatment" overwhelming majority of persons victimized the stock for the account of a Uruguayan sometimes lasting two to three minutes re­ by sewer service are unable to hire attorneys brokerage firm which was acting on behalf ceived printed notices that they would be to move to set aside judgments entered of HOMCO. HOMCO has pleaded guilty. found "guilty" by a Judge and that "we against them without notice, the judgments In United States v. Giampola, a former em­ are ... notifying your family, your friends ..• remain in effect and serve to significantly ployee of the Chase Manhattan Bank was your employer, your church, etc . ..." burden the lives of the judgment debtors. convicted of conspiracy to defraud the bank The principal defendant in this case was Under the supervision of Postal Inspectors, · by sending a fraudulent cable authorizing sentenced to a term of four years, and two post office employees compiled a schedule of the transfer of $11,000,000 to a Swiss bank. co-defendants to lesser terms. A co-defend­ default judgments entered in the Civil Court In Uni ted States v. Blackwood, et al., six ant was also convicted in a separate trial of of the County of New York over a randomly defendants, including a law professor, were assaulting federal marshals who were exe­ selected 3-week period: the last two weeks of indicted for taking stolen securities out of cuting a search warrant and an arrest war­ February 1968 and the first week of March. the country to be sold through a Swiss bank. rant on the premises. Every default judgment entered in that pe­ In United States v. Braverman, et al., two Instrumentalities of the offense charged riod was recorded as well as the name of the sales representatives for firms selling to mili­ were seized under federal search warrants process server, the date and place of the tary post exchanges were indicted for evad­ when the indictment was filed. The warrants alleged service, the names of the parties and ing taxes on $3 million of income by divert­ were upheld by the Court. In its opinion, the the name of the plaintiff's attorney. The ing commissions to a Liechtenstein company Court pointed out that defendants appeared completed schedule revealed that about 1,000 that were then deposited in !\ Swiss bank. to continue the activity charged in the in­ judgments were entered in each of the 3 In United States v. Dolin, et al., the Execu­ dictment even after the indict ment was filed. weeks in the Civil Court. tive Vice President of Realty Equities Corp. Convictions were obtained under a separate Once the schedules were completed, postal and a consultant to the company are named indictment covering such subsequent acts. inspectors wrote letters to each of the per­ as defendants. This indictment charges that The convictions were unanimously affirmed sons against whom the 3,000 default judg­ through a series of transactions an opportu­ from the bench on appeal. ments were entered, addressing the letters to nity became available to Realty Equities to In United States v. Armantrout and United the place where the alleged service took repurchase a note with warrants attached at States v. Sterngass, convictions were obtained place. Although mailed but a few weeks after a price substantially below its fair market for "chain referral" swindles in which pur­ the alleged services, approximately 900, or value. This opportunity was not utilized for chasers of merchandise, who paid from sev­ 30 %, of these letters were ret urned to the the benefit of the corporation, but instead, eral hundred dollars up to $1,200, were Post Office with a stamp revealing an in­ the indictment charges, the note was pur­ falsely told that by solicitors visiting the vic­ ability to deliver the letter as addressed for chased by a Swiss bank for the benefit of the tims in their homes that the victims could reasons such as the non-existence of the consultant. The purchase was for $531,250; obtain the items at no cost by furnishing addressee at the address indicated, his previ­ very soon thereafter, the note was sold for names of other potential customers. It is ous departure to another address or the non­ $988,542-a quick $450,000 profit. mathematically impossible for such promises existence of the address. Thus, before any In United States v. Lerner, et al., the in­ to be true for the average customer. issue of the credibility of the judgment dictment charges that significant amounts of In United States v. Monroe Caine, et al., debtor was reached the investigation dis­ three new issues, one of which was Weight three defendants were indicted for mail fraud closed that approximately 30 % of the judg­ Watchers International, Inc., were purchased in connection with their promotion of the ments entered in the Civil Court were entered by a Panamanian company through several "Unitron", an alleged gasoline saving device without notice. Swiss banks, including such giants as Credit which sold for $4.95 on which the defendants In United States v. Wiseman, the defendant Suisse. The defendant owned 48% of the allegedly grossed over $800,000 in their first was convicted under the Civil Rights Act of Panamanian company used to violate the U.S. ten months of operation. 1866 for falsely stating he had served sum­ Securities laws. In United States v. Lopez, a conviction was monses, thus causing default judgments to In United States v. Rayward, an indictment obtained for fraud involving the obtaining be entered without notice, constituting a charged a defendant with siphoning off funds of deposits from Spanish-speaking automo­ deprivation of property without due process earned in this country into a dummy Pana­ bile insurance applicants and then substitut­ of law, contrary to the 14th Amendment. manian corporation to evade income taxes. ing bad checks sent to the insurance compa­ Thereafter, five other process servers (all in The defendant is a fugitive in Switzerland nies, while falsely using the name of an­ the survey referred to above) as well as the and is continuing to conduct business here other insurance broker, to conceal the fact principal of a process servlng agency were in­ through another name. A search warrant ex­ that the defendant had no valid license. dicted for similar violations. In United States ecuted at the premises was upheld but this In United States v. Regent Office Supply v. Rick, one of these five process servers was failed to halt the operation. Co., th.e Court found two corporations guilty also convicted for vlolation of the Civil Other cases involving abuse of foreign ac­ of mail fraud where salesmen posing as doc­ Rights Act by falsely swearing that he had counts for illegal ends are referred to else­ tors or lawyers falsely told purchasing agents served a summons in a civil case. where in this report including those con­ that office supplies were on distress sale due A search warrant for documents kept by tained in the preceding section on prosecu­ to the death of a friend, and the mails were a process serving agency yielded about 6,300 tions related to organized crime such as nar­ used to bill the purchasers. affidavits signed in blank by about 100 differ­ cotics. However, other members of society A conviction was obtained in United States ent process servers. About 150 of these af­ also use such accounts to cheat the Govern­ v. Feldman for shipment of 24,300 pounds fidavits had also been notarized in blank. ment out of taxes and to conceal other crim­ of meat with false Department of Agriculture Process servers who have gone to trial have inal conduct. inspection "choice" stamps, to the United testified as to signing over 100,000 of these C. Consumer fraud States Military Academy at West Point. blank affidavits of service. Protection of the public against consumer In United States v. Currier, a conviction Process servers are also required by Fed­ fraud 1s of primary importance both to the was obtained and a four year sentence im­ eral law to certify that they have reason to reputation of legitimate business and the posed for forty-five counts of bilking twenty­ believe the person served is not in military protection of the public--particularly the two college, high school and social organiza­ service. A complaint in United States v. Kauf­ poor-against oppressive practices. In order tions across the nation of tens of thousands man charges the filing of a false affidavit in to ut111ze existing federal statutes more effec­ of dollars by falsely representing that the violation of this provision. tively in this field, a new Consumer Fraud defrauded groups would be provided such Investigations also revealed a repeated Unit was established by the Office in 1968. show business personalities as The Beach practice of bringing suit in a county where a The primary federal criminal statute, ap­ Boys, The Kings Men, The Lettermen, Roy finance company is located even though the plicable to fraud against consumers 1s the Orbison, Peter, Paul and Mary, The Clancy sale was made elsewhere and the buyer lives mall fraud statute. Brothers and Tommy Makem, Dave Brubeck, elsewhere, depriving customers of their day Under the mail fraud statute, any scheme The Miracles, Stan Kenton, Mitchell Trio, in court. to defraud or to obtain money by false rep­ The Four Freshmen, Josh White, The Four D. Securities fraud resentations is covered if the mails are used. Preps and Gail Garnet. The Securities Fraud Unit, created in 1961, The false pretenses themselves need not be In United States v. Kalkin, an indictment devotes its time to the discovery and prose­ contained in anything sent by mail. It is was returned against a collection attorney cution of stock frauds and manipulations enough if the mails are used in any respect for fraudulently adding collection fees to perpetrated on the public. During the period for the purpose of executing the scheme. judgments. covered by this report, 48 convictions were In United States v. Zovluck, three defend­ "Sewer Service" obtained in this District for such offenses. ants were convicted in a scheme involving As a result of many complaints the Office In addition to prosecuting cases referred to deceit and intimidation in the operation of began an investigation into possible viola­ the Department of Justice by the Securities a "chiropractic" establishment falsely prom­ tions of Federal laws in conneciton with a Exchange Commission, investigations have ising "free" treatments handling some 20,000 practice known as "sewer service". been instituted into areas previously receiv­ new patients annually and processing about "Sewer service" refers to the practice of ing little prosecutorial attention. For ex­ 160 persons per day. Witnesses testified that process servers or process serving agencies of ample, a Grand Jury investigation into pos­ they were told upon arrival that they needed falsely alleging service of process on individ- sible manipulation of securities traded on the 756 CONGRESSIONAL RECORD- HOUSE January 22, 1.970 American Stock Exchange led to 5 separate in Philadelphia. The defendant Myron lations a.gainst attack on a motion to dis­ indictments in 1967-68. And a current Grand Freudberg, a bank president, assisted Kane miss the indictments. In United States v. Jury investigation into the use of Swiss Bank in disposing of the stock through various Weiner, a former SEC Branch Chief was in­ accounts to conceal illegal securities trans­ brokers in New York. To accomplish this dicted for perjury before a Grand Jury in­ actions executed in this country has already scheme Kane transferred his stock into the vestigating the receipt of inside information resulted in a number of cases which are re­ names of over 40 fictitious persons and nomi­ by the four defendants charged with the ported in Section B above. nees. Freudberg, as bank president, guaran­ short sales. Peltz has been convicted; trial A description of some of the more signifi­ teed the purported signatures of these per­ of the other defendants in these cases is cant securities fraud cases prosecuted dur­ sons on stock certificates, delivered the stock pending. ing the period follows. to the purchasing brokers and paid the pro­ In United States v. Victor Muscat, the de­ In Uni ted States v. Louis Wolfson, et al. ceeds over to Kane. fendant, who was president and chairman of (I), Louis Wolfson and his chief business In Uni ted States v. Arzi Bank, an indict­ the board of Fifth Avenue Coach Lines, Inc. associate, Elkin Gerbert, were convicted of· ment was filed in December 1968 against the and Defiance Industries, Inc., and also an conspiracy and eighteen violations of the Arzi Bank, A.G., Zurich, Switzerland, charg­ officer and director of numerous other cor­ Securities Act arising out of the illegal sale ing in one count that Arzi, as a broker and porations, was indicted and charged in 7 of approximately $3,000,000 worth of un­ dealer transacting business within the counts with prejury before a Federal Grand registered common stock of Continental En­ United States, had extended credit to cus­ Jury and filing false and misleading reports terprises, Inc., a company controlled by tomers in violation of the margin require­ with the Securities and Exchange Commis­ Wolfson. Wolfson was sentenced to a prison ments of Regulation T of the Federal Re­ sion. term of one year and fined $100,000 and the serve Board. The bank pleaded guilty on the Muscat pleaded guilty to the two counts costs of the prosecution. Gerbert received a same day, and was fined $2,500. of the indictment relating to the filing with six months sentence and $50,000 fine. The In November 1968 about $2 million worth the SEC of false and misleading reports of convictions were unanimously affirmed by of securities at three brokerage houses in Fifth Avenue Coach Lines. the Court of Appeals. New York City was seized on the ground that In United States v. Edward Krock, the de­ In United States v. Louis Wolfson, et al. the securities were both the fruits and the fendant was indicted and pleaded guilty to (ll) , Wolfson, the chairman of the Board instrumentalities of crime. This seizure was all three counts of an indictment charging of Directors of Merritt Chapman & Scott not challenged by either the defendant or him with causing to be made false and mis­ Corporation; Staub, the president; Gerbert, the brokerage houses. leading statements in annual reports and a director; and Kosow, a Boston financier, In United States v. Eugene Ross, et al., proxy statements of Fifth Avenue Coach were convicted of conspiring to commit per­ the President and owner of Ross Securities, Lines, Inc. and Defiance Industries, Inc. jury, suborn perjury and obstructing jus­ Inc., and two other defendants were con­ Krock, a Massachusetts financier, was an tice in connection with an SEC investiga­ victed of conspiring to manipulate the price officer and director of Fifth and Defiance. At tion into stock transactions totalling over of Pan Alaska Fisheries, Inc. common stock that time, Fifth's stock was listed on the from $4 to $8.75 in the over-the-counter mar­ New York Stock Exchange and Defiance stock $15,000,000 entered into between Kosow and was listed on the American Stock Exchange. Wolfson on behalf of Merritt Chapman & ket. The injury to the public exceeded a quarter of a million dollars. In United States v. Roy M. Cohn, a Federal Scott. Wolfson and Gerbert were also con­ Grand Jury returned a 10-count indictment victed of perjury and, with Staub, of caus- In United States v. Samuel Goldberg, et al., the manager of the Biltmore Securities against Roy M. Cohn. Counts 1 through 5 • ing Merritt Chapman & Scott to file false charged Cohn with mail fraud and wire reports with the SEC. Wolfson and Gerbert Corp. and a number of its salesmen were convicted for sale of about $1 million of fraud violations relating to several public each received prison sentences of 18 months companies, including Fifth Avenue Coach to be served after the completion of their worthless Utah Uranium and Oil Company stock and that of its successor Shelton­ Lines, Gray Lines Corp., Defiance Industries, earlier sentences and were each fined $32,000. Warren on Co. The convictions were affirmed Inc., and American Steel and Pump. Kosow was sentenced to one year in pris'On on appeal except for that of a salesman Counts 6 through 9 charged Cohn with and fined $10,000. Staub was fined $30,000. found to have withdrawn from the con­ making false statements in reports and proxy In United States v. Simon, et aZ., two spiracy. statements of various public companies in­ partners and a senior associate of the na­ In United States v. Donald Mullany, the cluding Fifth Avenue Coach Lines, Inc. tional accounting firm of Lybrand, Ross Bros. first prosecution for violation of the report­ Count 10 charges that Cohn conspired & Montgomery were convicted in June, 1968, ing regulations as to commodity futures un­ with others to use interstate facilities, in­ for conspiracy and mail fraud in connection der the Commodity Exchange Act, a margin cluding the mail, to defraud certain public with the 1962 financial statements of Con­ clerk was convicted for trading potato fu­ companies and to fl.le false and misleading tinental Vending Machine Corp. The defend­ tures in the accounts of customers without statements and reports with the SEC. ants were found guilty by a jury of conceal­ their knowledge. In United States v. Sinclair N. Robinson, Ing the fact that the President of the In United States v. Parrott, et al., two the defendant is charged in a 7-count in­ corporation had siphoned off over $4 million defendants were convicted of conspiracy to dictment with mail and wire fraud, conceal­ from the corporation through an affiliated sell unregistered stock by fraud. Petron Cor­ ment of assets in bankruptcy proceedings of company and the fact that the "marketable poration owned a worked-out uranium mine several public corporations, and concealment securities" purportedly securing the debt and an oil lease that had never produced of facts relating to those public corporations consisted of the President's own controlling any net income. The printed brochures dis­ from the Securities and Exchange Commis­ Interest in the company itself. In addition tributed by the conspirators depicted the sion, and conspiracy. The principal company defendants were found guilty of attempting company as having a "pro forma" net worth whose stockholders were allegedly defrauded to diminish the size of the defalcation by of nearly $70,000,000 based on two options by Robinson was Pantex Manufacturing falsely stating that the "debt" to the cor­ which the company had no funds to exer­ Corporation, a Rhode Island dry cleaning poration could be reduced by an offsetting cise. equipment company which went into bank­ payable which was in fact not available as In United States v. Allen, et al., three de­ ruptcy in 1963. an offset. The convictions were affirmed by fendants were convicted of engaging in a Mr. Robinson was a fugitive for 2~ years the Court of Appeals. national and international scheme to ma­ and was apprehended by the FBI in March In United States v. Birrell, Lowell M. Bir­ nipulate the price of Pentron Electronics of 1968. He is under indictment in the United rell, t.he stock promoter who fled the country Corporation on the American Stock Exchange Kingdom and in Switzerland for defrauding in 1957 and returned from Brazil in 1964, in early 1963. The defendants, who included British and Swiss corporations of millions of was found guilty of conspiracy and substan­ two former stock exchange salesmen and a dollars. tive violations of the Securities Act of 1933 Canadian investment adviser then living in In United States v. Whorl, the defendant in connection with the sale, for approxi­ Paris, France, allegedly created demand for was convicted of a violation of the margin mately $3,000,000, of unregistered stock of Pentron stock through the use of under-the­ requirements. This was the first criminal American Leduc Petroleums, Ltd. A hearing table payments of cash to persons who recom­ prosecution for a violation of Regulation U is presently pending on the issue whether mended the purchase of the stock. since its promulgation in 1934. any evidence used at Birrell's trial derived In United States v. Peltz, United States v. E . Fraud agai nst Government fttncLs in hous­ from certain files, estimated to contain from Karp, United States v. Mandell and United ing and renewal and other p r ograms two to four million documents, which were States v. Jacobson, four defen~ants were in­ Under Federal housing programs, benefits seized in 1959 while he was a fugitive and dicted in the first cases charging illegal are generally provided indirectly through suppressed as evidence against Birrell in 1965. "short sales" in violation of S.E.C. rules re­ payments or guarantees to third parties. A The maximum sentence which could be im­ quiring that such sales be made when the number of cases have uncovered fraud in posed on Birrell is 55 years imprisonment price of the securities are going up or hold­ such programs including the following: and a $60,000 fine. ing steady. The four, according to the Gov­ In United States v. Schwartz, et aZ., two In United States v. Kane and Fr eudber g, ernment, did not tell their brokers that they partners in a moving and trucking firm, and t he defendants were convicted of conspiring did n ot own the stock when they gave orders a customer of the firm were indicted for to sell approximately 1 ~ m1111on dollars for the brokers to sell. A further indictment submission of false expenses for relocating worth of unregistered stock of the American charges Peltz was given confidential informa­ the customer incident to a renewal program Dryer Company during 1959. The defendant tion by an SEC employee for whom he se­ financed in part by Federal funds. WilHam Kane, the owner of the stock, was cured the services of prostitutes. The Court In United States v. Aaronson, et al., an ac­ the president of American Dryer Company upheld the valdity of the statute and regu- countant and an attorney, promoters of a January 22, 1970 CONGRESSIONAL RECORD- HOUSE 757 $2 mi1lion FHA insured housing project in order guns resulted in a conviction for un­ convicted of a tax fraud in which they caused Brooklyn which went into default causing lawful transportation of pistols and revolvers. infiated bills to be submitted by a supplier a loss to the Government of $400,000, were In United States v. MelvilLe, et al., four of hat decorations. The convictions and pris­ indicted for falsifying their working capital defendants are charged with conspiracy to on sentences were affirmed on appeal. and number of subscribers. place bombs in two Federal Buildings and in In United States v. Proner, the conviction In United States v. Mayer, et al., an assist­ four United States Army trucks located in and 3-year sentence of an importing firm ant vice president of a bank and three con­ New York City. owner was affirmed. While negotiating a set­ tractors were indicted for fraudulently ob­ United States v. Joseph D'Amico, et al., tlement of $1 million in back taxes, Proner taining FHA insured loans. involved convictions for a White Plains bank filed false statemento of current income with In a related type of fraud involving hous­ robbery by three members of a New Haven the IRS concealing secret profits in a fiower ing financing, in United States v. Deaton, gang, believed to number between 30 and 40, importing business. et al., three defendants were indicted for which specialized in robberies. The robbers A new development in criminal tax cases fraudulently obtaining $150,000 in advance all wore Navy watchcaps pulled down over has been the expanding assertion of the in­ fee payments from mortgage applicants. their faces to prevent identification. One sanity defense. Defendants who have never In United States v. Crisona, an extensive robber was arrested just outside the bank, been committed to a mental institution are mortgage swindle defrauded Victims out of was convicted on his plea and was sentenced increasingly claiming that although their more than $110,000. Frank Crisona, a former to 12 years. D'Amico went to trial. He was mental condition was such that they could Queens County Assistant District Attorney, not apprehended at the scene and none of amass large sums at the same time it pre­ received advance fees from borrower Victims the witnesses were able to identify him. He vented them from meeting their tax obliga­ which he said he would hold in escrow pend­ was identified by comparison of hair from tions. In some cases past "temporary" in­ ing the funding of mortgage loans. All of the D'Amico's scalp with hair left in a watch­ sanity is claimed. defendants received prison sentences which cap discarded outside the bank. D'Amico In United States v. Bai1·d, the Court of Ap­ were upheld by the Court of Appeals. was convicted by a jury and received a sen­ peals held, however, that when an insanity Prosecutions also were pressed for fraud tence of 14 years. defense is raised the Government may ob­ against other federal programs. In United G. Water pollution tain an order for its psychiatrist to examine the defendant and testify at trial. In that States v. Schueler a conviction was obtained During the last year this office has filed for false statements to AID authorities where case the defendant, a fioor broker and part­ indictments or informations against several ner with a leading New York stock brokerage $18,000 was billed for transformers at $550 railroads and oil firms depositing oil, acid each, whereas the catalog price was $25 each. firm, was convicted of failing to file his Fed­ and other wastes in navigable waters. eral income tax return for a five-year period. In United States v. Gubbay, an indictment In United States v. Spearin, et al., the was returned for false statements to AID as defendants engaged ir a land-fill operation In United States v. Hagedorn, a wealthy to the origin of goods made abroad and newspaper publisher was convicted on two for the World Trade Center i•... lower Man­ counts of income tax evasion. The Govern­ labeled as U.S. origin. hattan, and were convicted of causing wooden In United States v. Bzura, et al., six men, ment proved that Hagedorn had charged timbers to fiow into the Hudson River on two substantial personnel expenditures ranging and Professional Health Services, Inc. and different days. In United States v. Federated tts subsidiary Rugby Funding, Ltd., which Homes, Inc., the defendant was convicted of from a trip to Europe to works of art in his purchased medicaid accounts from doctors, causing wooden timbers to be deposited on home to three closely held corporations con­ were indicted for fraudulent sales of $2 mil­ the banks of the East River in such a way trolled by him. Hagedorn received substan­ lion in securities to the public without dis­ that they were liable to be washed into tial fines following his conviction by a jury. closing secret misuse of corporate funds. the East River, a navigable water, by tidal From July 1, 1967 up to OCtober 1, 1969, Thls indictment grew out of a continuing action and storms. this office has indicted 34 Internal Revenue investigation of abuses involving medicaid employees, 27 tax practitioners and 16 tax­ funds, fifty percent of which are provided H. Income tax fraud anl- bribery payers for bribery and attempted bribery. by. the Federal Government. During the period 62 defendants were con­ During this period, 12 employees and 32 In United States v. Adams, as a further victed in income tax cases, including both accountants and taxpayers have been con­ outgrowth of its investigation into corrup­ figures involved in other illegal activities and victed of these offenses. tion into the administration of the State amuent members of society who chose to An intensive investigation of corruption Medicaid Program, the Grand Jury indicted cheat on their taxes. in the Internal Revenue Service in the New State Senator William E. Adams, Chairman In United States v. Charles Marcus, de­ York area was carried on by the Inspection of the Senate Committee on Social Services fendant was convicted for income tax eva­ Service of the Internal Revenue Service and an author of the original medicaid bill, sion and filing of false income tax returns. working in collaboration with this office. One for perjury and obstruction of justice in Marcus, a Certified Public Accountant, phase of the investigation involved under­ connection with his receipt of $5,000 in cash earned the bulk of his unreported income cover work which resulted in the arrest of from two officials of Professional Health as an unlicensed check cashier. The evi­ 36 individuals during 1968, of which 31 have Services, Inc. dence established that Marcus cashed more been indicted and 8 convicted. . In United States v. Ha1-ry Lightstone, the than $10,000,000 worth of checks, receiving During the course of the investigation a General Counsel of the Pennsylvania Turn­ a commission of at least 1%, most of which Special Grand Jury was empanelled, and pike Commission was arrested for attempt­ he failed to report on his income tax return. more than 220 individuals were subpoenaed ing to receive bribes and extort some $25,000 To effect his check cashing operation, Mar­ to testify before it. More than 900 tax re­ from Merritt-Chapman & Scott Corp. for the cus opened more than fifty bank accounts turns have been selected for reaudit and to settlement of a million-dollar construction in ten banks under twenty different names. date approximately 417 have been assessed claim pending before the Commission. A substantial amount of the check cashing with an additional total tax deficiency of was done for bookmakers, who discounted more than $3,000,000. F. Bombing and other crimes of violence with Marcus the checks they received in Since July 1, 1967 to October 1, 1969, ap­ While most "street crime" is a violation of payment of gambling debts. Much of the proximately 185 overtures of attempted local rather than Federal law, crimes of vio­ balance consisted of checks Marcus received from persons engaged in textiles and re­ bribery and other misconduct were reported lence against federal property, interstate hi­ by employees. Prior to this office's commit­ jacking (discussed in the section concerning lated businesses, who used Marcus' services ment to root out corruption in the tax area organized crime) and certain other crimes of to evade their own taxes by listing as ex­ there were not more than 10 attempted violence come within the Federal Criminal penses money they in fact pocketed. bribes reported for a comparable period of Code. The Court of Appeals affirmed the convic­ tion. Investigations into Marcus' affairs led time. In United States v. Compton, the defend­ I. Miscellaneous Federal C1'imes ant was convicted of threatening the life of to the indictment or conviction of a num­ President Nixon in two telephone conversa­ ber of bookmakers and gamblers who were 1. Theft of Welfare and Social Security tions in which he stated he had a gun and exposed by tracing the checks deposited in Checks would kill the President within a month. Marcus' account. During 1968, the City of New York, Depart­ In United States v. Kornstein, a former ment of Social Services, discovered that In United States v. Lazarus, et al., two de­ officer of a real estate brokers association fendants were convicted of conspiring to in­ somewhere in the neighborhood of two mil­ was convicted of tax evasion. The evidence lion dollars' worth of Welfare checks were fiate the world copper price by blowing up indicated he had accumulated almost $200,- a bridge in Zambia in East Africa. The heing reported stolen each month. Since 000 in a "reserve" in savings accounts with­ these checks are sent through the mails, the charge was the first under a 1917 law pro­ out paying tax on it. hibiting conspiracies to destroy public prop­ United States Postal Service began to in­ erty in countries at peace with the United In United States v. Aberson, the defendant vestigate to determine if rings of individuals States. was convicted and sentenced to one year's were receiving and handling large numbers imprisonment for failing to report over $60,- of stolen checks. During the later part of In United States v. Coleman, et al., two 000 in commissions he earned for assembling 1968, the Post Office was able to determine women were convicted of kidnapping a 3- oil leaseholds in the Southwestern United that most of these stolen checks were being year-old girl and transporting her to South States on behalf of Canadian stock pro­ removed by addicts from hallway mail boxes Carolina for sale. moters. on welfare check days, which fall regularly on In United States v. Lombard, the first fed­ In United States v. Bernstein, et al., two the 1st and 16th of each month. These ad­ eral indictment for illegal shipment of mail defendants in the millinery business were dicts were then selling these checks at 20 % 758 CONGRESSIONAL RECORD- HOUSE January 22, 1.970 of their face value to operators of businesses. an issue raised on the appeal which is now New York City, :filed spurious contracts with The buyers of stolen checks would then pending. the Department o! Justice. deposit the checks in their bank accounts to In United States v. Taurine, et al., two de­ 10. Mllitary finance other business operations. The City, fendants were convicted of conspiring to bribe a Customs inspector to admit allegedly In addition to cases based on failure to suffering from a huge overload of work, in comply with Selective Service laws, the Office m"...ly cases paid these checks and only pornographic booklets invoiced as "cups and saucers." Two other defendants are awaiting had to contend with a number of instances months later was able to return these checks in which persons in violation of such laws to the banks :.n which they were deposited. trial. In United States v. Wild, et al., a landmark fled the country and with situations involv­ Numerous indictments and convictions have ing obstruction of selective service functions, been obtained. decision was rendered by the Court of Ap­ peals affirming the convictions of two de­ including draft-card burning cases. In United In United States v. Joseph Bastone, et al.• States v. Wmiam Daniel Roberts, Jr. a civil­ two individuals pleaded guilty to buying and fendants for distributing photographs show­ ian employee of the Army Reserve was con­ receiving stolen checks on the morning their ing homosexual acts being commited. The victed in March, 1968 of accepting bribes in trial was scheduled to begin. During the trial material was sent unsolicited to some recip­ connection with the enlistment of applicants against Joseph Bastone, the Government ients. The Court held that expert testimony into the six-month Army Reserve program. called in excess of 75 Welfare recipients to was not needed to show the nature of the He received a six-month sentence and his the stand to prove that the checks deposited appeal of the exhibits. conviction was affirmed on appeal. by Bastone had been removed from mall­ 5. Copyright Violations boxes. Bastone was found guilty by his jury 11. Customs Fraud In United States v. Slapo, et al., two men Convictions for violations of the Customs and sentenced to fifteen years. and a corporation were convicted for pub­ Altogether the cases brought involved the laws were obtained in 12 cases during the lishing "fake" musical books in violation period. Among the noteworthy prosecutions theft of over a million dollars worth of wel­ of Title 17, United States Code, Section 104 fare checks. were the conviction in United States v. which makes it a crime to infringe for profit George for bringing in tablecloths from the In United States v. Jose Gonzales. et al., a valid copyright. The defendants were two defendants have been convicted and Far East falsely invoiced as figurines, the charged with publishing large quantities of convictions in United States v. Taurine, et al. others are awaiting trial in a case involving collections of popular songs without the per­ stealing Federal Social Security as well as mentioned previously (involving allegedly mission of the true copyright owner. At the obscene booklets invoiced as cups and sau­ welfare checks. Drug addicts and juvenile trial, in order to prove the similarity between delinquents were used to steal checks, which cers) and the indictment in United States v. the fake book songs and the copyrighted Cassotta, in which a Customs inspector was defendants would purchase at a large dis­ sheet music, composers and musical experts count from their face value, and then de­ charged with falsely lnltialing documents to testified and played the piano. The de­ indicate that he had checked merchandise posit in bank accounts ma.lntained by bakery fendants were convicted on all 45 counts and and grocery businesses. which he had not in fact inspected, and with received :fines in the aggregate amount of accepting bribes to pass the merchandise 2. Counterfeiting $22,500. involved in the Taurine case. During the period involved, 291 convic­ 6. Bootlegging of Untaxed Cigarettes 12. Other Stolen Property tions were obtained for printing and passing In United States v. Paladino. et al.• the In United States v. Louis Edelman, the de­ counterfeit money. first indictment of its kind in the country was fendant was convicted for the interstate In United States v. Spitalieri, et al., four returned charging the defendants with transportation of 250 stolen paintings worth defendants were convicted of transporting cigarette smuggling operations which caused more than $25,000. After stealing the paint­ $500,000 of counterfeit $20 United States bills losses to the New York State and New York ings from his employer, Herbert Arnot, a although a Government witness' family was City Government of tax revenue in millions leading importer of commercial European threatened and he refused to testify. of dollars. Investigations into other compa­ paintings, Edelman sold them across the In United States v. GonzaZez-Carta et al., nies operating in the same fashion are con­ country to help set up his own business. two former Government Officials of Cuba, tinuing. Proof at the trial established that Edelman were among six defendants convicted of con­ 7. Payola was aided in this venture by his wife who spiring to counterfeit $1 million in United In United States v. Alasco, et al., four disc was subsequently indicted. A sentence of two States currency for the purported purpose of jockeys on two radio stations have been in­ years and a $10,000 fine was imposed and the purchasing arms allegedly for use in revo­ dicted for receiving bribes from manufactur­ conviction was affirmed by the Court of Ap­ lutionary activities. Over $500,000 in coun­ ers in return for playing particular records. peals. terfeit 20-, 50-, and 100-dollar bills were re­ In United States v. Olsen, defendant was covered before they could be distributed. The 8. Illegal Gold Transactions convicted of interstate transportation of convictions were affirmed on appeal and Gon­ In United States v. Brown, a conviction was $15,000 worth or rare coins and curre"V'j zalez-Carta, a former Cuban Congressman, obtained for violation of gold laws by posses­ stolen from a Minneapolis Department store. and Perez-Carrll, formerly the Postmaster of sion of a bar of 20-carat gold worth approxi­ 13. Other Frauds Oriente province, are serving sentences of 5 mately $1,400 without a. license. and 3 years respectively. In United States v. Eskow, two officers of 9. Immigration Fraud Yale Express Systems, were convicted of 23 3. Official Misconduct A substantial number of the 76 convictions counts of mall fraud. The defendants fraudu­ Several prosecutions during the period in­ obta.lned during the period for Immigration lently obtained loans of $2,350,000 from eight volved official misconduct. Violations involved fraudulent marriages. insurance companies through the use of false In United States v. Ballard and United In United States v. Artry, et al., four de­ financial statements of Yale and its sub­ States v. Spratley, a former Secret Service fandants were convicted of conspiring to de­ sidiaries. The false information was also dis­ agent and a former Federal Bureau of Nar­ fraud the Immigration and Naturalization tributed in reports of the company. Shortly cotics Agent were convicted in jury trials of laws by arranging fraudulent marriages be­ after the loans were obta.lned, the company dealing in counterfeit money, in a scheme to tween Jamaican aliens and United States went into reorganization. use the proceeds of the counterfeit to buy citizens. After the "wedding ceremony" peti­ In United States v. Haggett, et al., a Vice­ and sell heroin. tions were filed with the Immigration Service President of the Meadowbrook National Bank, In United States v. Bell, et aZ., two former on behalf of the aliens to obtain permanent and a TV executive who borrowed money federal narcotics agents were convicted of residence for them in the United States by from the bank to finance his companies, were conspiring to commit extortion. The two Virtue of the marriages. At the trial it was convicted of misapplication of federally in­ agents remained in the vicinity of a suspect's proven that the marriages were never cons•• sured bank funds. Proof at trial showed that apartment after other survellllng agents had mated and that the parties never lived to­ Haggett, the banker, made loans of nearly terminated activities for the night. They gether. Howard Artry, the chief defendant one-half mlllion dollars on the basis of thereafter made a forced entry to the apart­ who headed the operation was sentenced to fraudulent and worthless accounts receivable ment, mas~uerading a "pollee officers" and 18 months imprisonment. In United States v. invoices pledged with the bank. The bank showing their federal badges, and tried to Moratis and United States v. Surrantos, a eventually lost over 1% mlllion dollars in shake down the suspect. lawyer and a travel agent were also indicted connection with this and other loans made for ananging several fraudulent marriages. by Haggett. Both defendants were sentenced 4. Pornography In United States v. Abrams, defendant, an to five years imprisonment and Dahlman Despite controversy over what is suffi­ attorney, was convicted for counseling clients was placed on probation for five years to ciently harmful pornography to be pro­ to make false statements to the authorities commence at the end of his prison term. hibited and under wha.t circumstances, the and to conceal themselves while remaining In United States v. Fassoulis, et al., three Office was able to bring important prosecu­ in the United States illegally. In addition, New Yorkers and the president of an Okla­ tions in which the lack of redeeming social Abrams was conVicted of attempting to ob­ homa insurance company were indicted for value of the material was so clear that the struct justice by causing a Government wit­ defrauding by mall banks and lending in­ issue of obscenity was not even raised on ness to recant her testimony. stitutions, in a scheme whereby life insurance appeal. In United States v. Saks, et az .• two United States v. Williams, involved a con­ policies were fraudulently used as collateral defendants were convicted in a case involv­ viction for fraud in the entry of dancers into in obtaining loans. ing distribution of 50,000 photographs and the United Sta.tes from Middle Eastern coun­ In United States v. Friedland, a former thousands of reels of film. Obscenity was not tries. The defendant an agent for dancers in SEC investigator was convicted and sen- January 22, 1970 CONGRESSIONAL RECORD- HOUSE 759 tenced to two years for obtaining bank loans produced by the illegal activity involved, ef­ ings from Private Collectors, Post Office through false financial statements. fective prosecution in these areas can help Box 4660, Los Angeles, Calif. 90046, he In United States v. Hsu, a conviction was generate a greater respect for legal stand­ must file new objection to similar ma­ obtained for a scheme to defraud $250,000 by ards throughout the entire community. borrowing funds from victims while posing terial received only months later from as a friend of Chiang Kai-shek and offering Love Co., 7472 Melrose Ave., Los Angeles, participation in fictitious business ventures. THE BIG BUSINESS OF ORGANIZED Calif. 90046. The same is true with Cy­ The defendant was sentenced to eight years PORNOGRAPHY bertype Co·:p., New York City 10011, and imprisonment. Stemar Press, Ltd., New York City 10011. In United States v. Perin, a whiskey futures The SPEAKER. Under a previous order Perhaps the occurrence happens with merchant was charged with concealing of the House, the gentleman from Wis­ Barbara Martine in Los Angeles 90046 $140,000 in securities and monies in con­ consin tucky F FLOYD W. PARSONS, LITTLE ROCK reaching the disadvantaged. others now Answer: Yes. SCHOOL DISTRICT, Lrr'l'LE RoCK, ARK. contend that we cannot effectively utilize Do you regard your present Title I pro­ How many children in your district are extra funds contained in the HEW Appro­ grams as effective in meeting special educa­ benefitting from education programs funded priation Bill because the funds are being tion needs of educationa.lly disadvantaged under Title I of ESEA? misdirected and are not reaching the disad­ children? Answer: Education programs, 2,987; per­ vantaged contemplated under Title I ESEA. Answer: Yes. We would provide more re­ sonal services, 1,463. Your brief comments on these contentions medial help if personnel were available, and What is the ADA in your school district would be appreciated. we would like to expand our vocational grades K-12? Comment: I believe guidelines should be training. Answer: 23,324. more flexible and adaptable to each locale. Recent hearings in Washington disclosed What was the amount of your ESEA Title I Perhaps some funds have been misused; that inadequate funding was the greatest grant in each of the folloWing fiscal years? however, any system having title I funds will obstacle in the path of more effectively Answer: 1968 $651,585, 1969 $593,601, 1970 deteriorate if funds are unavailable. We need reaching the disadvantaged. Others now $533,287. morel contend that we cannot effectively utilize What additional funds, 1! any, could you extra funds contained in the HEW Appro­ effectively apply to your Title I programs in RESPONSE OF WARREN ANDREWS, THREE RIVERS priation Bill because the funds are being fiscal year 1970 over and above the present SCHOOL DISTRICT, THREE RIVERS, MicH., misdirected and are not reaching the dis­ level of funding? In fiscal year 1971? JANUARY 22, 1970 advantaged contemplated under Title I Answer: 1970, $118,000 (the difference be­ ESEA. Your brief comments on these con­ tween the amount allocated now and the How ma.ny children in your district are tentions would be appreciated. benefitting from education programs funded amount allocated in 1968); 1971, $200,000 Comment: I feel that most schools in Ari­ (if the money is received in time to make under Title I of ESEA? zona with which I am familiar do a pretty Answer: 200. adequate plans tor its efficient use) . good job in reaching the educationally dis­ In your judgment, do you believe that the What is the ADA in your school district advantaged. grades K-12? Title I programs are needed to meet the special needs of educationally disadvantaged Answer: 3,200. REsPONSE OF FRED E. ALLEN, ScHOOL ADMIN­ What was the amount of your ESEA Title children? ISTRATIVE DISTRICT No. 43, MEXICO, MAINE, Answer: Yes. There is a tremendous gap I grant in each of the following fiscal years? JANUARY 22, 1970 Answer: 1968, $25,000, 1969, $22,000, 1970, between many of the disadvantaged children $7,800. How many children in your district are and children from the so-called amuent fam­ What additional funds, if any, could you benefitting from education programs funded mes--often they are in competition in the effectively apply to your Title I programs in under Title I of ESEA? same classroom since full integration has fiscal year 1970 over and above the present Answer: 112. taken place. level of funding? In fiscal year 1971? What is the ADA in your school district Do you regard your present Title I pro­ Answer: 1970, $15,000, 1971, $15,000. grades K-12? grams as effective in meeting special educa­ In your judgment, do you believe that the Answer: 1,336 ADA in public schools; en­ tion needs of educationally disadvantaged Title I programs are needed to meet the rollment of 268 in parochial school. children? special needs of educationally disadvantaged What was the amount of your ESEA Title I Answer: It is effective but limited some­ children? grant in each of the following fiscal years? what in scope and depth. Answer: Yes. Answer: 1968, $30,058; 1969, $26,639; 1970, Recent hearings in Washington disclosed Do you regard your present Title I pro­ $23,762. that inadequate funding was the greatest grams as effective in meeting special educa­ What additional funds, 1! any, could you obstacle in the path of more effectively reach­ tion needs of educationally disadvantaged effectively apply to your Title I programs in ing the disadvantaged. Others now contend children? fiscal year 1970 over and above the present that we cannot effectively utllize extra funds Answer: No. level of funding? In fiscal year 1971? contained in the HEW Appropriation Bill Recent hearings in Washington disclosed Answer: 1970, $1,000 for supplies and because the funds are being misdirected and that inadequate funding was the greatest equipment-present program covers salaries are not reaching the disadvantaged contem­ obstacle in the path of more effectively reach­ only; 1971, $9,000 add another teacher to the plated under Title I ESEA. Your brief ing the disadvantaged. Others now contend program with more needed supplies. .With comments on these contentions would be that we cannot effectively utilize extra. funds cuts in budgets due to increased taxes this is appreciated. contained in the HEW Appropriation Bill essential to keep the program. Comment: Most programs are ~d but because the funds are being misdirected and In your judgment, do you believe that the inaedquate funding and not enough time to are not reaching the disadvantaged con­ Title I programs are needed to meet the spe­ plan are the two main reasons for poor templated under Title I ESEA. Your brief cial needs of educationally disadvantaged programs. In fact, if it is impossible tor Con­ comments on these contentions would be children? gress to make appropriations to permit ad­ appreciated. Answer: Definitely-we have accomplished vance planning on the use of funds, I would Comment: None. a great deal in a poor district, which would suggest a one-year moratorium on Title I not have been done without the Title I funds. funds to permit us to have the benefits of With increasingly more property taxes, we advance funding. RESPONSE OF F. A. DAHLEN, ASSISTANT SUPER­ need to continue such programs even more INTENDENT, No. 1, WINSLOW, ARiz., JANU­ than before. RESPONSE OF MICHAEL L. CASSETTO, OF SCHOOL ARY 22, 1970 Do you regard your present Title I pro­ DISTRICT No. 171, 0ROFINOS, IDAHO, JANUARY How many children in your district are grams as effective in meeting special educa­ 22, 1970 benefitting from education programs funded tion needs of educationally disadvantaged How many children ln your district are under Title I of ESEA? children? benefitting from education programs funded Answer: Elementary, 386; high school, Answer: Yes-Our program was designed under Title I of ESEA? 165; total, 551. to meet the needs of these children, par­ Answer: 2,886. What is the ADA in your school district ticularly, in the reading area and the asso­ What is the ADA in your school district grades K-12? ciated problems that these disadvantaged grades K-12? Answer: Elementary, 1825.800; high school, children have in their home environment. Answer: 2,575. 730.450; total, 2556.250; as of January 16, Recent hearings in Washington disclosed What was the amount of your ESEA Title 1970. that inadequate funding was the greatest I grant 1n each of the folloWing fiscal years? What was the amount of your ESEA Title obstacle ln the path of more effectively Answer: 1968, 28,290; 1969, $29,410; 1970, I grant in each of the folloWing fiscal years? reaching the disadvantaged. Others now con­ none received in 1970 {estimated $28,741). Answer: tend that we cannot effectively ut111ze extra What additional funds, if any, could you 1968-Elementary, $138,577.56; high school, funds contained in the HEW Appropriation effectively apply to your Title I programs in $49,895.72; total, $188,473.28. Bill because the funds are being misdirected fiscJ.l year 1970 over and above the present 1969-Elementary, $126,551.69; high school, and are not reaching the disadvantaged con­ level of funding? In fiscal year 1971? $45,475.51; total, $172,027.20. templated under Title I ESEA. Your brief Answer: 1970, $10,000; 1971, $15,000. 1970-Elementary, $119,224.00; high school, comments on these contentions would be ap­ In your judgment, do you believe that the $42,591.00; total, $161,815.00. preciated. Title I programs are needed to meet the spe- January 22, 1970 CONGRESSIONAL RECORD- HOUSE 777

cial needs of educationally disadvantaged effectively a.pply to your Title I programs in RESPONSE OF WALTER C. WOOD, SUPERIN­ children? fiscal year 1970 over and above the present TENDENT, WILKES-BARRS CITY, WILKES­ Answer: Yes. level of funding? In fiscal year 1971? BARRE, PA., JANUARY 22, 1970 Do you regard your present Title I pro­ Answer: 1970, $245,000; 1971, $250,000. How many children in your district are grams as effective in meeting special educa• {Total population growth in schools only benefiting from education programs funded tion needs of educationally disadvantaged 2 % to 3% per year). under Title I of ESEA? children? In your judgment, do you believe that the Answer: 2,908. Answer; Yes. Title I programs are needed to meet the spe­ What is the ADA in your school district Recent hearings ln Washington disclosed cial needs of educationally disadvantaged grades K-12? t hat inadequate funding was the greatest children? Answer: 18,024 or approximately 94% of a obstacle in the path of more effectively Answer: Yes. 19,175 total membership in the 16 districts. rea ching the disadvantaged. others now con· Do you regard your present Title I pro­ What was the amount of your ESEA Title t end tbat we cannot effectively utilize extra grams as effective in meeting special educa­ I grant in each of the following fiscal years? funds contained in the HEW Appropriation tion needs of educationally disadvantaged Answer: 1968 $444,860, 1969 $415,373, 1970 Bill because the funds a.re being misdirected children? $349,927. and are not reaching the disadvantaged con­ Answer: Yes, but we a.re not meeting all What additional funds, if any, could you templated under Title I ESEA. Your brief of the needs of these children. More money effectively apply to your Title I programs in comments on these contentions would be and additional programs will be needed to fiscal year 1970 over and above the present appreciated. do the work. level of funding? In fiscal year 1971? Comment: We have been able to purchase Recent hearings in Washington disclosed Answer: 1970 $52,000, 1971 $68,750. To instructional equipment which improved our that inadequate funding was the greatest balance Instructional Service Costs and con­ program-along with a Te!beher Aid program. obstacle in the path of more effectively tinue summer school program. For more This along with stipends for sending a few reaching the disadvantaged. Others now con­ Reading specialists and special ed. teachers. teachers to summer school in remedial read­ tend that we cannot effectively utilize extra In your Judgment, do you believe that ing-all of these programs gives the teacher funds contained in the HEW Appropriation the Ti tie I programs are needed to meet the more opportunity to help disadvantaged Bill because the funds are being misdirected special needs of educationally disadvantage<:! pupils. and a.re not reaching the disadvantaged con­ children? templated under Title I ESEA. Your brief Answer: Yes. RESPDNS:S: OF L. W. DWYER, SUPERINTENDENT, comments on these contentions would be ap­ Do you regard your present Title I pro­ BERLIN, N.H., JANUARY 22, 1970 precia.ted. grams as effective in meeting special edu­ How many children in your district are Comment: At the outset of the program cat ion needs of educationally disadvantaged instructions given were not complete enough children? benefiting from education programs funded to portray the true picture of the purpose of Answer: Yes, very much so. under Title I of ESEA? ~he funds for the d1.sadvantagecl. In helping Recent hearings in Washington disclosed Answer: 287. What is the ADA in your school distriot the disadvantaged in one school it retlects that inadequate funding was the greatest on all students enrolled in that school obstacle in the path of more effectively grades K-12? through the use of special materials or equip­ :reaching the disadvantaged. Others now Answer: 2,337. ment. In no way can I say that funds have What was the amount of your ESEA Title contend that we cannot effectively utilize intentionally been misused. Had the direc­ extra funds contained in the HEW Appro­ I grant in each of the following fiscal years? tions been more explicit at the beginning Answer: 1968 $40,481, 1969 37,477, 1970 31,­ priation Bill because the funds are being of the prGgram the purpose of Title I would misdirected and are not reaching the dis­ '137-$39,455 requested. have been better understood. In this county, What additional funds, if any, could you advantaged contemplated under Title I we have attempted to stick to a basic pro­ effectively apply to your Title I programs in ESEA. Your brief comments on these con­ gram-primarily testing, food, health, read­ tentions would be appreciated. fiscal year 1970 over and above the present ing, materials, etc .. rather than the utopian level of funding? In fiscal year 1971? Comment: The Wilkes-Barre City School program of teaching machines, additional District is in a cooperative program with Answer: 1970 $7,718 plus $3,000 tor sum­ housing, the ultimate in scientific equip­ mer program, 1971. 25,000 or more. 15 other districts. The program is multi­ ment, because these "economically and ed­ faceted and includes the following: In your Juc:tgment, do you believe that the ucationally deprived" don't need Cadlllacs I 1. Day Care Center for severely retarded Title programs are needed to meet the to begin the improvement. special needs of educationally disadvantaged children, ch1ldren? 2. Readiness Classes for mentally retarded Answer: In our area, yes. RESPONSE OF HEltBE!tT C. PEARSON, HANOVER children of kindergarten and first grade Do you regard your present Title I pro­ TOWNSHIP, WILKES-BARRE, PA. age, grams as effective in meeting special educa­ How many children in your district are 3. An Adaptive Physical Education and tiQD needs Df educationally disadvantaged benefitting from education programs funded Recreation Program for physically handi­ cblldren? under Title I of ESEA? capped children, Answer: Yes, but we need more of the Answer: 293. 4. A Kindergarten Aide Program for chil­ .same and follow-up programs. What is the ADA in your school district dren needing special attention, Recent hearings in Washington disclosed grades K-12? 5. A Remedial Reading and Enrichment that inadequate funding was the greatest Answer: 2160. Program for Emotionally Disturbed Children obstacle in the path of more effectively What was the amount of your ESEA Title I 6. A Speech Therapy Program for handi­ reaching the disadvantaged. othea now con­ gran~ in each of the following fiscal years? capped children, tend tha.t we cannot effectively utilize extra Answer: 1968 $54,515.76, 1969 $42,535.89, 7. A Supportive Elementary Library Serv­ tunds contained In the HEW Appropriation 1970 $38,747.13. ice Program, Blll because the funds are being misdirected What additional funds, if any, could you 8. A Tutorial Program for Children Oper­ and are not reaching the disadvantaged. con­ effectively apply to your Title I programs in ating Below Grade Level. templated under Title I ESEA. Your brief fiscal year 1970 over and above the present These services would have to be curtailed coDllaents on these contentions would be level of funding? In fiscal year 1971? if ESEA I funds were not available. appreciated. Answer: 1970$7,000,$1971 $8,500. comment: The funds in our area. are well In your judgment, do you believe that the RESPONSE OF DR. JOHN W. ZORELLA, ASSISTANT directed in our opinion. The money has Title I programs a.re needed to meet the SUPERINTENDENT OF SCHOOLS, PASSAIC helped do badly needed remedial work and special needs of educationally disadvantaged CouNTY, N.J., JANUARY 22, 1970 has served to indicate new directions for children? How many children in your district are helping the disadvantaged in this region. Answer: Yes. benefiting from education programs funded Do you regard your present Title I pro­ under Title I of ESEA? grams as effective in meeting special educa­ Answer: 1969/ 70-Winter 845 pupils, Sum­ RESPONSE OF W. DoUGLAS HARTLEY, SUPER­ tion needs of educationally disadvantaged mer, 280. INTENnENT, ST. JOHNS COUNTY, ST. AUGUS­ children? TINE, FLA., JANUARY 22, 1970 What is the ADA in your school district Answer: Yes. grades K-12? How many ohlldren in your district are Recent hearings in Washington disclosed Answer: 1968/ 1969 ADA $7,500.5, ADE benefiting from education programs funded that inadequate funding was the greatest '$8,481.8. under Title I of ESEA? obstacle in the path o! more effectively What was the amount of your ESEA Title Answer; 1,497 low income. reaching the disadvantaged. Others now con­ I grant in each of the following fiscal years? What ls the ADA in your school district tend that we cannot effectively utilize extra Answer: 1968 $253,525, 1969 $245,304, 1970 grades K-12? funds contained 1n the HEW appropriatiOn $259,594. Answer: 6,399 {close of 3d month). Bill because the funds are being m.lsdirected What additional funds, 1! any, could you What Wa3 the amount of your ESEA Title and are not reaching the disadvantaged con­ effectively apply to your Title I programs in .I grant in each o.f the following fiscal years? templated under Title I ESEA. Your brief fiscal year 1970 over and above the present Answer~ 1968 .$244,816, 1969 $28~75. 1970 comments on these contentions would be ap­ level of funding? In fiscal year 1971? $194,754. preciated. Answer: 1970 Est. $50,000, 1971 Est. $100,- What additional funds, if any, could you Comment: None. 000. 778 CONGRESSIONAL RECORD- HOUSE January 22, 1970 In your judgment, do you believe that the reached the disadvantaged children. The obstacle in the path of more effectively reach­ Title I programs are needed to meet the only exception has been that in our art and ing the disadvantaged. Others now contend special needs of educationally disadvantaged music classes and some of our field trips that we cannot effectively utilize extra funds children? where the advantager may have also been contained in the HEW Appropriation Bill Answer: Yes. It is unrealistic, and fre­ benefitted along with the disadvantaged because the funds are being misdirected and quently impossible to teach 30-35 education­ children. are not reaching the disadvantaged contem­ ally disadvantaged children in a classroom. plated under Title I ESEA. Your brief com­ Small group, and individual instruction, in RESPONSE OF DANIEL MORTENSON, GREEN RIVER ments on these contentions would be ap­ many cases has proven to be very helpful. SCHOOL DISTRICT No. 2, GREEN RIVER, WYO., preciated. Do you regard your present Title I pro­ JANUARY 22, 1970 Comment: Perhaps in a few isolated cases grams as effective in meeting special educa­ How many children in your district are there is some foundation to the criticism. tion needs of educationally disadvantaged benefitting from education programs funded Shall we kill the baby because he cries now children? under Title I of ESEA? and then? The money is badly needed and Answer: Title I programs have been help­ Answer: 110 to 120. we enclose a study I ordered to be sure no ful. They would be more helpful if we had What is the ADA in your school district money was being improperly used. I ask the the physical facilities in terms of classrooms. grades K-12? critics-"has one superintendent been ac­ Many of our classes are being taught in hall­ Answer: 1,283. cused of misappropriating 1 cent?" Perhaps ways, basements and closets. Four successive What was the amount of your ESEA Title some programs have been ill-advised-but in budget defeats. I grant in each of the following fiscal years? one agency or home or office is this not so. Recent hearings in Washington disclosed Answer: 1968, $11,314; 1969, $10,491; 1970, that inadequate funding was the greatest ob­ $8,561. RESPONSE OF Da-. RALPH GOITIA, SUPERIN­ stacle in the path of more effectively reaching What additional funds, if any, could you TENDENT, PHOENIX ELEMENTARY SCHOOL the disadvantaged. Others now contend that effectively apply to your Title I programs in DISTRICT No. 1, PHOENIX, ARIZ., JANUARY we cannot effectively utilize extra funds con­ 22, 1970 fiscal year 1970 over and above t~e present tained in the HEW Appropriation Bill because level of funding? In fiscal year 1971? How many children in your district are the funds are being misdirected and are not Answer: 1970, $2,500; 1971, $2,500. benefitting from education programs funded reaching the disadvantaged contemplated In your judgment, do you believe that the under Title I of ESEA? under Title I ESEA. Your brief comments on Title I programs are needed to meet the Answer: 2,855. these contentions would be appreciated. special needs of educationally disadvantaged What is the ADA in your school district Comment: This certainly is not true in grades K-8? Passaic! We are hampered in making our pro­ children? Answer: Yes. Answer: 9,900. gram more effective because we do not have What was the amount of your ESEA Title a sufficiency of classroom space. We intend to Do you regard your present Title I pro­ grams as effective in meeting special educa­ I grant in each of the following fiscal years? rent additional quarters commencing Sep­ Answer: 1968 $402,000, 1969 $403,239, 1970 tember 1970. Our remedial reading and bilin­ tional needs of educationally disadvantaged children? $413,513. gual program have for the first time been What additional funds, if any, could you geared to helping the disadvantaged chil­ Answer: Yes. Recent hearings in Washington disclosed effectively apply to your Title I programs dren, who prior to the advent of ESEA fund­ in fiscal year 1970 over and above the present ing were literally "vegetating." that inadequate funding was the greatest obstacle in the path of more effectively level of funding? In fiscal year 1971? reaching the disadvantaged. Others now con­ Answer: 1970 Anywhere from ¥2 milllon RESPONSE OF RICHARD W. HISLOP, SUPERIN­ tend that we cannot effectively utilize extra to 1 ¥2 mlllion to improve present programs TENDENT, BRISTOL, VA., JANUARY 22, 1970 funds contained in the HEW Appropriation now contemplated and which must be done How many children in your district are Bill because the funds are being misdirected in a piece-meal manner due to a lack of benefitting from education programs funded and are not reaching the disadvantaged con­ funds. under Title I of ESEA? templated under Title I ESEA. Your brief In your judgment, do you believe that the Answer. 532 (About 16% of the students). comments on these contentions would be Title programs are needed to meet the spe­ What is the ADA in your school district appreciated. cial needs of educationally disadvantaged grades K-12? Comment: Increased costs in education children? Answer: 3,234c.69. limit educational advantages. Answer: Yes. Rationale. Arizona like many What was the amount of your ESEA Title I other states does not have equitable funding grant in each of the following fiscal years? RESPONSE OF DR. CHARLES E. DAVIS, ELMmA for local districts from the state level. Al­ Answer: 1968 $148,982.01, 1969 $128,179.56, CITY DISTRICT, ELMIRA, N.Y., JANUARY 22, though steps are being made in this direc­ 1970 $108,071.60. 1970 tion, they still fall short of the mark. Phoenix Elementary School District No. 1 is an inner What additional funds, if any, could you How many children in your district are effectively apply to your Title I programs in city school which has serious financial prob­ benefitting from education programs funded lems facing it. The problems of educational fiscal year 1970 over and above the present under Title I of ESEA? level of funding? In fiscal year 1971? benefits for children are even more pressing. Answer: Approximately 1,200. The educational needs of boys and girls in Answer: 1970 $10,000 (Summer School), What is the ADA in your school district 1971 $100,000 for a permanent summer camp the inner city simply are not being met. grades K-12? Money alone will not solve the problems, facility for SMR and EMR and economically Answer: 12,980. deprived children. such as the low reading level of students What was the amount of your ESEA Title matriculating to the high school. However, In your judgment, do you believe that the I grant in eaoh of the following fiscal years? Title I programs are needed to meet the if the answers are to be found, programs Answer: 1968 $322,230.93, 1969 $290,773.35, which will be soundly evaluated must be special needs of educationally disadvantaged 1970 $335,055.00. children? instituted. If a partial answer to the solution What additional funds, if any, could you does indeed 1ie in more and better preschool Answer: If it had not been for Title I effectively apply to your Title I programs in funds, the needs of our disadvantaged chil­ experiences for boys and girls, funds from fiscal year 1970 over and above the present sources other than state and local must be dren could not have been met. level of funding? In fiscal year 1971? Do you regard your present Title I pro­ utilized. It is difficult to convince many peo­ Answer: 1970 $157,000, 1971 $217,000. ple that it simply costs more money to edu­ grams as effective in meeting special educa­ In your judgment, do you believe that the tion needs of educationally disadvantaged cate the type of boys and girls which are Title I programs are needed to meet the spe­ found in the inner city. If the educational children? cial needs of educationally disadvantaged output of boys and girls in the inner city is Answer: Title I funds have been absolute­ children? to be measured effectively with those of the ly necessary to meet the following needs of Answer: Definitely! We are finding out suburbs, the many special needs of these our deprived: free lunches, dental and medi­ more and more how specialized, varied and boys and girls must be met. Presently, it is cal including speech and hearing, psycholog­ numerous are the problems of these children. almost impossible to do so with existing ical tests, remedial math and reading, EMR Local funds could not begin to be adequate funds. classes, Music, Art, etc. to meet them effectively. Do you regard your present Title I pro­ Recent hearings in Washington disclosed Do you regard your present Title I pro­ grams as effective in meeting special edu­ that inadequate funding was the greatest grams as effective in meeting special educa­ cation needs of educationally disadvantaged obstacle in the path of more effectively tion needs of educationally disadvantaged children? reaching the disadvantaged. Others now con­ children? Answer. Yes, to a degree. Rationale. Al­ tend that we cannot effectively utilize extra Answer: Our programs are relatively effec­ though this district like many others has funds contained in the HEW Appropriation tive. We need more funds and highly trained made several attempts in different directions Blll because the funds are being misdirected personnel to do more justice to the special to meet the special education needs of these and are not reaching the disadvantaged con­ problems these children have. Advance fund­ children, the main objectives and goa.ls are templated under Title I ESEA. Your brief ing would also help in more effective plan­ now coming into focus which allows us to comments on these contentions would be ning of programs. pinpoint our most critical needs. Those needs, appreciated. Recent hearings in Washington disclosed incil.dentally, revolve around prekindergarten, Comment: At least 85% of our funds have that inadequate funding was the greatest prefirst and postfirst education with slz- January 22, 1970 CONGRESSIONAL RECORD- HOUSE 779 eble portlolls of our budget being chan­ What additional funds, if any, could you What is tbe ADA in your school district neled into special education, i.e., the em<>­ effectively apply to your Title I programs 1D. grades K-12? tlon&lly disturbed and the menta.Uy handi­ fiscal year 1970 over and a.bove the present Answer: 1,450. (:&ppe£1. Again. sta-te funds are simply not level of funding? In .fiscal year 1971? What was the amount of your ESEA Title au.flicient to mount the type of programs Answer: 1970 $10,000, 1971 $10.000. I grant in each of the following fiscal years? Which ue so -desperately needed by these In your Judgment, do you believe that the Answer: 1968 $34,821.28, 1969 $30,920.88, children. 'The amount of money received by Title I programs are needed to meet the spe­ 1970 $27,971. this distl"ict has been, I feel, utilized in a cial needs of educationally disadvantaged What additional funds, if any, could you BOUnd m•nner; however, experience has children? effectively apply to your Title I programs in fiscal year 1970 over and above the present ~harpened our preception of what we feel Answer: Yes, definitely. should be offered to these boys and girls. Do you regard your present Title I pro­ level of funding? In fiscal year 1971? The big problem facing most districts is the grams as effective in meeting special educa­ Answer: 1970 $50,000, 1971 $50,000. uncertainty of such funding and, therefore, tion needs of educationally disadvantaged In your judgment, do you believe that the children? Title I programs are needed to meet the spe­ the big question arises whether or not these cial needs of educationally disadvantaged funds .should be put into programs rather Answer: Yes. As far as they go. We need to have additional funds for summer and addi­ children? than materials and supplies. The problem Answer: I am not an advocate of categori­ facing districts such as this one which has tional building space to use the present funds effectively. cal aid to education. It would be better for placed large amounts into programs is one the Federal Government to go to block grants of recruitment and retainment of person­ Recent hearings in Washington disclosed that inadequate funding was the greatest or foundation aid. The present Title I pro­ nel. If 1lhe districts knew that the funds gram is patterned for large cities, not small would be automatlcaJ.ly coming to them they obstacle in the path of more effectively reach­ ing the disadvantaged. Others now contend towns and. rural areas. could do a more comprehensive job of plan­ Do you regard your present Title I pro­ rung. In my own opinion, if there is one that we cannot effectively utilize extra funds contained in the HEW Appropriation Bill be­ grams as effective in meeting special educa­ important aspect which has been brought tion needs of educationally disadvantaged •bout by Title I, it has been that it has cause the funds are being misdirected and are not reaching the disadvantaged contem­ children? forced. school people to at least look at their Answer: My opinion is that most of them problems -and to try to plan as far as pos­ plated under Title I ESEA. Your brief com­ ments on these contentions would be ap­ -are worth while, however, the dollar spent in sible for them. It is my opinion that in many Title I is not buying as much educational eases, educators in the past have failed to preciated. Comments: These funds are reaching the value on the dollar from state and local really scrutinize the educational problems sources. within their-districts. disadvantaged, however, more adequate fund­ ing in the area and addit ~ onal building space Recent hearings in Washington disclosed Becent hearlngs in Washington disclosed that inadequate funding was the greatest that inadequate funding was the greatest or lea~ed space can make the present pro­ grams more efiicient. obstacle in the path of more effectively reach~ obstacle in the path of more effectively reach­ ing the disadvantaged. Others now contend ing tbe disadvantaged. Others now contend that we cannot effectively utilize extra funds that we cannot effectively utilize extra funds RESPONSE OF WAYNE DENT, BAY-BROWN, BAY, contained in the HEW Appropriation Bill contained in the HEW Appropriation Bill be­ AlUt., JANUABY 22, 1970 because the funds are being misdirected and eause the funds are being misdirected and How many children in your district are ru-e not reaching the disadvantaged contem­ .are no:t reaching the disadvantaged contem­ benefitting from education programs funded plated under Title I ESEA. Your brief com­ plated under Title 1 ESEA. Your brief com­ under Title I of ESEA? ments on these contentions would be appre~ ments on these contentions would be ap­ ciated. preciated. Answer: 358. What is the ADA in your school district Comment: This is not directly to above, Comment: Again, it is my contention that grades K-12? but a complaint. In my judgment in Ten­ the funds have not been large enough in Answer: 686. nessee, procedures to identify the low income amount to concentrate on any one given What was the amount of your ESEA Title ch.i.ld.ren are not .adequate for purposes of problem to the extent of being able to meas­ I grant in each of the following fiscal years? splitting funds between systems within a ure adequately and efficiently the results of Answer: 1968 $50,552, 1969 $44,071, 1970 county. We are in Henry County, our system those funds. In short there are so many pro­ grams which need extra funds, not only in $38,899. enrolls about 1,550 children K-12, the Henry Oounty system enrolls about 3,600: they re­ the preschool phase of education but in the What additional funds, lf any, could you areas of the mentaJ.ly retarded, the emo­ effectively apply to your Title I programs in ceive about $170,000--we are receiving about tionally disturbed, areas such as music, art, fiscal year 1970 over and above the present $30,000. etc. Districts have been prone to "scatter" level of funding? In fiscal year 1971? their funds in order to give a much needed Answer: 1970 $12,000, 1971 $15,000. This RESPONSE OF EMERSON W. ROMAN, SUPERIN­ emphasis in these areas, and thereby not still would do a limited job. . TENDENT, HARRISON LocAL SCHOOL DISTRICT, obtalnlng full results. It is difficult to speak In your judgment, do you believe that the SciO, OHIO, JANUARY 22, 1970 for otber districts regarding the Jlllsdirec­ Title I programs are needed to meet the How many children tn your district are tion of funds and funds not reaching the special needs of educationally disadvantaged benefitting from education programs funded disadvantaged cbild. However, one of the children? under Title I of ESEA? realities iS that although the funds can be Answer: Yes. Answer: 335. focused and directed Into several schools, it Do you regard your present Title I pro­ What ls the ADA in your school district 1s most difficult to say that the 3% or 5% grams as effective in meeting special edu­ grades K-12? of the children who do not fit the disad­ cation needs o.f educationally disadvantaged Answer: 2,695. vantaged category be completely excluded children? What was the amount of your ESEA Title from the ongoing programs covered by Title Answer: Yes. I grant in each of the following fiscal years? I and expressly designed for those children. Recent hearings in Washington disclosed Answer: 1968 $47,209, 1969 $40,796, 1970 I, personally, do not feel that the funds that inadequate funding was the greatest $36,779. have been misdirected in our district and obstacle in the path of more effectively that, notwithstanding the experienc(' needed What additional funds, if any, could you reaching the disadvantaged. Others now effectively apply to your Title I programs in to grow into such programs, the district has contend that we cannot effectively utilillze done a creditable job of seeing that the fiscal year 1970 over and above the present extra funds contained in the HEW Appro­ level of funding? In fiscal year 1971? funds were used for the chUdren for whom priation Bill because the funds are being they were intended. Answer: 1970 $10,000, 1971 $10,000. misdirected and are not reaching the disad­ In your judgment, do you believe tba.t Thank you sincerely, Representative Per­ vantaged contemplated under Title I ESEA. kins. for this opportunity to express our the Title I programs are needed to meet the Your brief comments on these contentions special needs of educationally disadvantaged feelings regarding this most important pro­ would be appreciated. gram. children? Comment: I feel we have just begun to Answer: Yes. realize how much could be done for disad­ RESPONSE OF NEIL J. BOYLE, BENNETT COM• Do you regard your present Title I pro­ vantaged children if we had sufficient funds. MUNITY, BENNETT, JANUARY in educa~ IOWA, 22, 1970 I have not known of any instances where grams as effective meeting special How many chUdren in your district are funds have not been used. to the best ad­ tion needs of educationally disadvantaged benefitting from education programs funded va.ntage for these children. children? under Title I of ESEA? Answer: Yes. Answer: 115 directly, all of them indirectly. Recent hearings in Washington disclosed What is the ADA in your school district RESPONSE OF JULL\N BREWER, PARIS SPECIAL that inadequate funding was the greatest grades K-12? ScHOOL DISTRICT, PARIS, TENN., JANUARY 22, obstacle in the path or more effectively Answer: 475.5. 1970 reaching the disadvantaged. Others now con­ What was the amount of your ESEA Title How many children in your district are tend that we cannot effectively utilize extra. :I grant In each o~ t.he following fl.scal years? benefitting from education programs funded funds contained in the HEW Appropriation Answer: 19611 "$26.155. 1969 $20,684. 1970 under Title :r of ESEA? Bill because the .funds are being misdirected '$15.310. Answer: 50. .and are not reaching the disadvantaged con- 780 CONGRESSIONAL RECORD- HOUSE January 22, 1970 templated under Title I ESEA. Your brief fiscal year 1970 over and above the present Answer: 1968, $1,010,777; 1969, $995,867; comments on these contentions would be level of funding? In fiscal year 1971? 1970, $894,866. appreciated. Answer: 1970, $10,000; 1971, $13,000. What .additional funds, if any, could you Comment: None. In your Judgment, do you believe that the effectively apply to your Title I programs Title I programs are needed to meet the in fiscal year 1970 over and above the pres­ RESPONSE OF JAMES G. BUSICK, SUPERINTEND­ special needs of educationally disadvantaged ent level of funding? In fiscal year 1971? ENT, DoRCHESTER COUNTY BOARD OF EDu­ children? Answer: 1970 $347,061, 1971 $381,767. CATION, CAMBRIDGE, MD., JANUARY 22, 1970 Answer: Definitely. In your judgment, do you believe that the Do you regard your present Title I pro­ Title I programs are needed to meet the spe­ How many children in your district are grams as effective in meeting special educa­ cial needs of educationally disadvantaged benefitting from education programs funded tion needs of educationally disadvantaged children? under Title I of ESEA? children? Answer: Yes. Answer: 377 are receiving full impact while Answer: Our basic program is effective but Do you regard -your present Title I pro­ an additional1,033 are receiving fringe bene­ it should be expanded to provide additional grams as effective in meeting special educa­ fits : nursing and health, library, psychologi­ service to secondary pupils. tion needs of educat ionally disadvantaged cal. Recent hearings in Washington disclosed children? What is the ADA in your school district that inadequate funding was the grea.test ob­ Answer: Definitely. grades K-12? stacle in the path of more effectively reach­ Recent hearings in Washington disclosed Answer: 6,149.1 as of Oct. 31, 1969. ing the disadvantaged. Others now contend that inadequate funding was the greatest What was the amount of your ESEA Title I that we cannot effectively utilize extra funds obstacle in the path of more effectively grant in each of the following fiscal years? contained in the HEW Appropriation Bill be­ reaching the disadvantaged. Others now Answer: 1968 $272,558.79, 1969 $233,601.35, cause the funds are being misdirected and contend that we cannot effectively utilize 1970 $210,530. are not reaching the disadvantaged contem­ extra funds conta.ined in the HEW Appro­ What additional funds, if any, could you plated under Title I ESEA. Your brief com­ priation Bill because the funds are being effectively apply to your Title I programs in ments on these contentions would be Inisdirected and are not reaching the dis­ fiscal year 1970 over and above the present appreciated. advantaged contemplated under Title I ESEA. level of funding? In fiscal year 1971? Comment: All of our Title I funds (plus Your brief comments on these contentions Answer: 1970, at least $105,000 in order to local funds) are used to provide remedial would be appreciated. operate the Pre School program through reading and math to the disadvantaged. Ad­ Comment: Too much money is being spent June. we operate our program only through ditional funds could be utilized in language by the United States Office of Education on March. We start in October. 1971 $145,000.00. arts. Consolidated Program Information Reports In your judgment, do you believe that the and Nationwide Surveys which are costly Title I programs are needed to meet the RESPONSE OF GEORGE S. WILLARD, SUPERIN­ and are not valid on the local level. This special needs of educationally disadvantaged TENDENT, WILSON CrrY SCHOOLS, WILSON, money could be more effectively utilized in children? N.C., JANUARY 22, 1970. programs for the disadvantaged on the local Answer: Without hesitation, t he Title I level. programs in Dorchester County have laid How many children in your district are the foundation for the successful integration benefitting from education programs funded of our total school program, have upgraded under Titie I of ESEA? RESPONSE OF MR. CORDELL WYNN, ASSISTANT children, have promoted better school­ Answer: 2,385. SUPERINTENDENT, FEDERAL PROGRAMS, BmB family-community relations, have improved What is the ADA in your school district COUNTY BOARD OF EDUCATION, MACON, GA., our total program through revision of tra­ grades K-12? JANUARY 22, 1970 ditional programs, and remediated many in­ Answer: 7,392 (end of 4th school month). How many children in your district are fluences: socio-econoxnic, socio-cultural, What was the amount of your ESEA Title benefitting from education programs funded medical, dental, psychological that would I grant in each of the following fiscal years? under Titie I of ESEA? have had a retarding and debilitating effect. Answer: 1968 $301,795, 1969 $337,051, 1970 Answer: 15,014. Do you regard your present Title I pro­ $298,961. What is the ADA in your school district grams as effective in meeting special edu­ What additional funds, if any, could you grades K-12? cation needs of educationally disadvantaged effectively apply to your Title I programs in Answer: 33,095. children? fiscal year 1970 over and above the present What was the amount of your ESEA Title Answer: Not only would I state the effec­ level of funding? In fiscal year 1971? I grant in each of the following fiscal years? tiveness of our Title I programs in meeting Answer: 1970 $190,000, 1971 $210,000. These Answer: 1968 $1,115,647, 1969 $1,170,361, the stated objectives, but I would share the are conservative estimates. 1970 $760,561. excellent philosophy and programming with In your judgment, do you believe that the What additional funds, if any, could you others to validate its worth. Title I programs are needed to meet the effectively apply to your Title I programs in Recent hearings in Washington disclosed special needs of educationally disadvantaged fiscal year 1970 over and above the present that inadequate funding was the greatest children? level of funding? In fiscal year 1971? obstable in the path of more effectively Answer: Emphatically yes! Answer: 1970 $961,135, 1971 $980,439. reaching the disadvantaged. Others now con­ Do you regard your present Title I pro­ In your judgment, do you believe that the tend that we cannot effectively utilize.. extra grams as effective in meeting special educa­ Title I programs are needed to meet the funds contained in the HEW Appropriation tion needs of educationally disadvantaged special needs of educationally disadvantaged B111 because the funds are being Inisdirected children? Answer: The programs have helped greatly, children? and are not reaching the disadvantaged con­ Answer: Yes, positive results have been templated under Title I ESEA. Your brief but not all needs have been met. Recent hearings in Washington disclosed noticed in the achievement of all children comments on these cont entions would be who participated in Title I Programs and Ac­ appreciated. that inadequate funding was the greatest obstacle in the path of more effectively tivities. Additional funds are needed to pro­ Comment: Where the State Department of vide more services. Education has been the intermediate agency reaching the disadvantaged. Others now con­ tend that we cannot effectively utilize extra Do you regard your present Title I pru­ for federal programs, the greatest gains and graxns as effective in meeting special edu­ benefits for Dorchester County's children, funds contained in the HEW Appropria­ tion B111 because the funds are being misdi­ cation needs of educationally disadvantaged faxnilies and community have accrued. children? Major weakness: Not knowing the extent rected and are not reaching the disadvan­ taged contemplated under Title I ESEA. Your Answer: Yes, however, more f'unds are of funding to allow for long range, optimal needed to provide for special needs in the planning. brief comments on these contentions would be appreciated. education for the disadvantaged children in Comment: In our school district, I am our school system. Individualized instruc­ RESPONSE OF DR. JOE R . ANDREWS, SUPERIN­ convinced that the greatest obstacle is in­ tion, building of self-image, et cetera. TENDENT, BOLING INDEPENDENT SCHOOL DIS­ adequate funding. Recent hearings ln Washington disclosed TRICT, BOLING, TEX., JANUARY 22, 1970 that inadequate funding was the greatest How many children in your district are RESPONSE OF MRs. SAXON P . BARGERON, As­ obstacle in the path of more effectively benefiting from education programs funded SISTANT SUPERINTENDENT SAVANNAH-CHAT­ reaching the disadvantaged. Others now under Title I of ESEA? HAM COUNTY, SAVANNAH, GA., JANUARY 22, contend that we cannot effectively utilize Answer: 1,005. 1970 extra funds contained in the HEW Appro­ What is the ADA in your school dist rict How many children in your district are priation Bill because the funds are being grades K- 12? benefitting from education programs funded misdirected and are not reaching the dis­ Answer: 970.26. under Title I of ESEA? advantaged contemplated under Title I What was the amount of your ESEA Title Answer: 5,839. ESEA. Your brief comments on these con­ I grant in each of the following fiscal years? What is the ADA in your school district tentions would be appreciated. Answer: 1968, $57,432; 1969, $54,630; 1970, grades 1-12. Comment: Title I has had a positive and $49,830. Answer: 40,268. far reaching effect on the total educational What additional funds, if any, could you What was the amount of your ESEA Title I progress of educating the disadvantaged effectively apply to your Title I programs in grant in each of the following fiscal years? children in our system. As an educational January 22, 1970 CONGRESSIONAL RECORD- HOUSE 781 leader for more than 18 years, working di­ job of meeting the special needs of the edu­ have no assurance that their proposals will rectly with the disadvantaged as a teacher, cationally disadvantaged, as we modify our be approved or what amount they will re­ counselor, principal, and administrator, the program each year. ceive until well after the start of the school effective use of Title I funds has enhanced Recent hearings in Washington disclosed year. Add to this the delay in payment of quality education for our children. Without that inadequate funding was the greatest ESEA Title I funds (this school district re­ these funds, it would be difficult for these obstacle in the path of more effectively ceived its first 25% payment for our 1009- children to have had quality education 1n reaching the disadvantaged. Others now con­ 70 project on January 15, 1970-almost at the many areas of achievement. tend that we cannot effectively utilize extra mid-year) and you . get some idea of the funds contained in the HEW Appropriation fiscal problems faced by local school dis­ RESPONSE OF CARLTON C. MOFFETT, DALLAS IN• Bill because the funds are being misdirected t ricts. DEPENDENT SCHOOL DISTRICT, DALL..~S, TEX., and are not reaching the disadvantaged con­ I hope the comments made in t his letter JANUARY 22, 1970 templated under Title I ESEA. Your brief will be received as constructively as they How many children in your district are comments on these contentions would be were intended. Federal funds are needed and benefitting from education programs funded appreciated. are being used effectively by school districts Comment: There is no doubt in my mind to meet the needs of educationally disad­ under Title I of ESEA? vantaged children. Those of us in education Answer: 14,369. that much of the testimony your committee is taking relative to the use of ESEA Title I are concernd with need for special programs What is the ADA in your school district and services for the educationally disadvan­ grades K-12? funds is contradictory and unclear. I am Answer: 141,731.62 for 1968-69, grade 1-12. sure there are some very valid reasons for taged. We hope you will continue to give What was the amount of your ESEA Title I this confusion. I am also sure that virtually us the opportunity to show what we can grant in each of the following fiscal years? every school district in the United States do when we have the adequate resources Answer: 1968 $2,316,094, 1969 $2,232,229, could use more Federal funds to meet the needed. 1970 $2,053,966. added demands placed on their instructional What additional funds, if any, could you resources by the educationally disadvantaged RESPONSE OF W. C. MUNDY, SUPERINTENDENT, effectively apply to your Title I programs in children they serve. As a person responsible AMERICUS PuBLIC SCHOOLS, AMERICUS, GA., fiscal year 1970 over and above the present for the preparation, operation and evalua­ JANUARY 22, 1970 level of funding? In fiscal year 1971? tion of ESEA Title I programs for this School How many children in your district are Answer: 1970 $4 to $5 million, 1971 $4 to $5 District, I feel there are three major areas benefiting from education programs funded mill1on. of confusion relative to the ESEA Title I under Title I of ESEA? In your judgment, do you believe that the program that could lead to the assumption Answer: 1,100 to 1,800. Materials and Title I programs are needed to meet the that funds were being wasted or misdirected. equipment are used to enhance educational special needs of educationally disadvantaged Item 1, Terms: The designation education­ programs in the two project area schools children? ally disadvantaged and economically dis­ only. Answer: Yes. advantaged are used all too often synonym­ What is the ADA in your school district Do you regard your present Title I pro­ ously. This kind of comparison, along with grades K-12? grams as effective in meeting special educa­ culturally disadvantaged, may apply in a Answer: 3,189. tion needs of educationally disadvantaged broad sense to large city school districts, What was the amount o! your ESEA Title children. but for the most part there is not a one to I grant in each of the following fiscal years? Answer: Yes. one correlation between the educationally Answer: 1968 $244,186, 1969 $246,110, 1970 Recent hearings in Washington disclosed and economically disadvantaged in small $208,361. that inadequate funding was the greatest ob­ cities, villages, suburban and rural school What additional funds, if any, could you stacle in the path pf more effectively reaching districts. If it is a case of educational dis­ effectively apply to your Title I programs in the disadvantaged. Others now contend advantagement then fund the schools to fiscal year 1970 over and above the present that we cannot effectivly utilize extra funds meet this need. We are in existence to per­ level of funding? In fiscal year 1971? contained in the HEW Appropriation Bill be­ form this service. If it is a case of economic Answer: 1970 $90,000, 1971 $100,000. cause the funds are being misdirected and disadvantagement, then I'm not sure that the In your judgment, do you believe that the are not reaching the disadvantaged contem­ schools should assume the total responsibil­ Title I programs are needed to meet the spe­ plated under Title I ESEA. Your brief com­ ity for correcting it. cial needs of educationally disadvantaged ments on these contentions would be appre­ Item 2, Guidelines: Each state provides the children? ciated. local districts with guidelines for the de­ Answer: Disadvantaged children have been Comment: In my opinion the accusation of velopment of innovative programs to meet helped immensely through funds provided misdirected funds has probably arisen from the needs of the educationally and/or eco­ under Title I, ESEA. a few isolated cases. Our state department nomically disadvantaged. These guidelines Do you regard your present Title I pro­ monitors these funds closely. It would be dif­ are by necessity somewhat restrictive but for grams as effective in meeting special educa­ ficult to knowingly misdirect these funds the most part they lend themselves to large tion needs of educationally disadvantaged 1f a school district should choose to do so. city school districts. If waste has been evi­ children? dent in some ESEA Title I programs I'm sure Answer: Yes, this is evidenced through RESPONSE OF ALFRED G. GORDON, CITY o:r much of it was brought about by school dis­ higher achievement scores, better health TONAWANDA, N.Y., TONAWANDA, N.Y., JAN• tricts trying to develop programs according through free lunches, and improved self­ UARY 22, 1970 to some inflexible guidelines not appropriate image. How many children in your district are to the real needs they faced in their own Recent hearings in Washington disclosed benefitting from education programs funded school districts. For example, I am sure the that inadequate funding was the greatest under Title I of ESEA? school districts that serve Louisville, Ken­ obstacle in the path of more effectively Answer: 315 children (approximately). tucky and Bardstown, Kentucky are both reaching the disadvantaged. Others now What is the ADA in your school district faced with meeting the needs of education­ contend that we cannot effectively utilize grades K-12? ally disadvantaged children. I am equally extra funds contained in the HEW Appro­ Answer: 5094.3 K-12. sure that the most efficient way of meeting priation Bill because the funds are being What was the amount of your ESEA Title this need with federal funds would not be misdirected and are not reaching the disad­ I grant in each of the following fiscal years? the same in Louisville that it would be in vantaged contemplated under Title I ESEA. Bardstown. Each school district is in the Your brief cotnments on these contentions Answer: 1968 $58,355.20, 1969 $47,656.34, best position to know what programs would 1970 $44,700 (estimated). would be appreciated. be more effective for them. They should be Comment: Funds for the two project area What additional funds, if any, could you given the freedom to plan for thier needs and effectively apply to your Title I programs schools have been adequate for meeting the the responsibility to evaluate the effective­ needs of disadvantaged children. Additional in fiscal year 1970 over and above the pres­ ness of their programs. ent level of funding? In fiscal year 1971? funds should be provided to meet the needs Item 3, Federal and State Funding: of all children. No funds have been misdi­ Answer: 1970 $6,700 (15%), 1971 $15,750 Though this is a situation that should have rected, but have been used only for children (35%). (Late appropriation would preclude improved since 1965, it has not. Not once in t he project area schools. effective planning of expenditures.) since the ESEA Title I program started have In your judgment, do you believe that the school districts known how much money Title I programs are needed to meet the would be available for their programs be­ RESPONSE OF LESLIE C. BERNAL, ASSISTANT special :leeds of educationally disadvantaged fore the start of the school year. These de­ SUPERINTENDENT OF SCHOOLS, METHUEN children? lays have either been brought about by late PUBLIC SCHOOLS, METHUEN, MASS., JANUARY Answer: Yes. Corrective programs always congressional appropriations or indecision 22, 1970 cost more than preventive programs. (An on the formulas for distribution of funds How many children in your district are area not yet explored under Title I ESEA.) at the state level. Because the bulk of any benefitting from education programs funded Do you regard your present Title I pro­ ESEA Title I program consists of services under Title I of ESEA? grams as effective in meeting special edu­ (peoples' salaries) most school districts are Answer: 380. cation needs of educationally disadvantaged reluctant to commit local non-budgeted What is the ADA in your school distrlcl children? money (usually not available under local tax grades 1-12? Answer: Yes. I feel we are doing a better structures) to Tl_tle I projects when they Answer: 4,816. 782 CONGRESSIONAL RECORD- HOUSE January 22, 1970 What was the amount Of your ESEA Title RESPONSE OF E. L. BROWN, SUPERINTENDENT, help. We strongly urge the passage of this I grant in each of the following fiscal years? DAVIDSON COUNTY SCHOOLS, LExiNGTON, legislation in order to meet the needs of Answer: 1968 $42,050, 1969 $42,100, 1970 N.C., JANUARY 22, 1970 our disadvantaged pupils. $28,788. How many chlldren in your district are What additional funds, 1! any, could you benefitting from education programs funded RESPONSE OF HICKSVILLE PUBLIC SCHOOLS, effectively apply to your Title I programs 1n under Title I of ESEA? U.F.S.D. No. 17, HICKSVILLE, N.Y., JANUARY fiscal year 1970 over and above the present Answer: 1,096. 22, 1970 level of funding? In fiscal year 1971? What is the ADA in your school district How many children in your district are Answer: 1970 $22,000 (additional), 1971 grades K-12? benefitting from education programs funded $51,000. Answer: 12,896. under Title I of ESEA? In your judgment, do you believe that the What was the amount of your ESEA Title Answer: 291. Title I programs are needed to meet the spe­ I grant in each of the following fiscal years? What is the ADA in your school district cial needs of educationally disadvantaged Answer: 1968 $174,250, 1969 $163,826, 1970 grades K-12? children? $145,579. Answer: 232. Answer: A resounding yes! Without Title What additional funds, if any, could you What was the amount of your ESEA Title I funds the compensatory program initialed effectively apply to your Title I programs in I grant in each of the following fiscal years? for the educationally deprived children in fiscal year 1970 over and above the present Answer: 1968 $84,521.81, 1969 $68,710.33, Methuen would not have come to fruition in level of funding? In fiscal year 1971? 1970 est. $67,777. 1967 or any other year. Answer: 1970 $20,000, 1971, $50,000. What additional funds, if any, could you Do you regard your present Title I pro­ In your judgment, do you believe that the effectively apply to your Title I programs 1n grams as effective in meeting special educa­ T1 tie I programs are needed to meet the fiscal year 1970 over and above the present tion needs of educationally disadvantaged special needs of educationally disadvantaged level of funding? In fiscal year 1971? children? children? Answer: For every $75 per pupil cost, we Answer: We have hard data as well as Answer: Yes. could accommodate one more pupil. subjective analysis that indicated our pro­ Do you regard your present Title I programs In your judgment, do you believe that the gram is meeting the needs of the disadvan­ as effective in meeting special education Title I programs are needed to meet the spe­ taged. needs of educationally disadvantaged chil­ cial needs of educationally disadvantaged Recent hearings in Washington disclosed dren? children? that inadequate funding was the greatest ob­ Answer: Program too limited because of Answer: Yes. stacle in the path of more effectively reach­ limited appropriations. Do you regard your present Title I pro­ ing the disadvantaged. Others now contend Recent hearings in Washington disclosed grams as effective in meeting special educa­ that we cannot effectively utilize extra funds that inadequa.te funding was the greatest tion needs of educationally disadvantaged contained 1n the HEW Appropriations B111 obstacle in the path of more effectively children? because the funds are being misdirected and reaching the disadvantaged. Others now Answer: Yes. are not reaching the disadvantaged contem­ contend that we cannot effectively utilize Recent hearings in Washington disclosed plated under Title I ESEA. Your brief com­ extra funds contained in the HEW Appro­ that inadequate funding was the greatest ob­ ments on these contentions would be ap­ priation Blll because the funds are being stacle in the path of more effectively reaching preciated. misdirected and are not reaching the disad­ the disadvantaged. Others now contend that Comment: I can speak only for Methuen. vantaged contemplated under Title I ESEA. we cannot effectively utilize extra funds con­ We invite close scrutiny of our program and Your brief comments on these contentions tained in the HEW Appropriation Bill because allocation of money. There is no question in would be appreciated. the funds are being misdirected and are not my mind that these funds have been mis­ Comment: Some school systems cannot ef­ reaching the disadvantaged contemplated directed. fectively utilize the large allotment of funds under Title I ESEA. Your brief comments on allotted their systems. Provisions should be these contentions would be appreciated. RESPONSE OF DR. JOHN A. BERTRAND, SUPERIN­ made to re-allocate these funds to school Comment: Due to the lack of monies avail­ TENDENT, ACADIA PARISH SCHOOL BOARD, systems which can effectively use more funds. able to us last year in the summer remedial CROWLEY, LA., JANUARY 22, 1970 project, we were forced to double the class How many children in your district are RESPONSE OF MR. A. P. WILDMAN, DmECTOR size and thereby impede the intent and effec­ benefitting from education programs funded OF CURRICULUM, SHARON ScHOOL DISTRICT, tiveness of the program. Additional money under Title I of ESEA? SHARON, PA., JANUARY 22, 1970 provided would allow teachers to give more Answer: 5,107. How many children in your district are individual teaching to students who have What is the ADA in your school district benefiting from education programs funded failed and would have benefited by it. grades K-12? under T1 tie I of ESEA? Answer: 10,713. Answer: 266. RESPONSE OF B. A. CuNNINGHAM, ROGERSVILLE, What was the amount of your ESEA Title What is the ADA in your school district TENN., JANUARY 22, 1970 I grant in each of the folloWing fiscal years? grades K-12? Answer: 4,679. How many children in your district are Answer: 1968 $808,885.73, 1969, $709,042.12, benefitting from education programs funded 1970 $581,734. What was the amount of your ESEA Title I grant in each of the folloWing fiscal years? under Title I of ESEA? Wha.t &.dditional funds, if any, could you Answer: About 150, 1969-70. effectively apply to your Title I programs in Answer: 1968 $68,534, 1969 $70,066.71, 1970 66,423. What is the ADA in your school district fiscal year 1970 over and above the present grades K-12? level of funding? In fiscal year 1971? What additional funds, i! any, could you effectively apply to your Title I programs in Answer: Our system only has grades K-8. Answer: 1970 $300,000, 1971 $400,000. 1968-69, 591. In your judgment, do you believe that the fiscal year 1970 over and above the present level of funding? In fiscal year 1971? What was the amount of your ESEA Title Title I programs are needed to meet the I grant in each of the folloWing fiscal years? special needs of educationally disadvantaged Answer: 1970 $35,000, 1971 $35,000. In your judgment, do you believe that the Answer: 1968 $31,189, 1969 $28,692.25, 1970 children? $25,839. Answer: Yes. Title I programs are needed to meet the special needs of educationally disadvantaged What additional funds, if any, could you Do you regard your present Title I pro­ children? effectively apply to your Title I programs in grams as effective in meeting special educa­ Answer: Very definitely. fiscal year 1970 over and above the present tion needs of educationally disadvantaged Do you regard your present Title I pro­ level of funding? In fiscal year 1971? children? grams as effective in meeting special educa­ Answer: We need a kindergarten program Answer: Yes. tion needs of educationally disadvantaged and a music program for all children which Recent hearings in Washington disclosed children? would involve total salaries of $14,000. that inadequate funding was the greatest Answer: Additional money would reach In your judgment, do you believe that the obstacle in the path of more effectively more disadvantaged pupils and enable us to Title I programs are needed to meet the spe­ reaching the disadvantaged. Others now have a more effective program, especially if cial needs of educationally disadvantaged contend that we cannot effectively utilize we knew in sufficient time about the funding. children? extra funds contained in the HEW Appro­ Recent hearings in Washington disclosed Answer: The special personnel, speech, priation Bill because the funds are being that inadeq-qate funding was the greatest hearing, reading and psychiatist have never misdirected and are not reaching the dis­ obstacle in the path of more effectively been available to us on State and local level advantaged contemplated under Title I ESEA. reaching the disadvantaged. Others now con­ 1n sumc1ent numbers to help so many of the Your brief comments on these contentions tend that we cannot effectively utilize extra special cases. would be appreciated. funds contained in the HEW Appropriation Do you regard your present Title I pro­ Comment: Situations where funds are Bill because the funds are being misdirected grams as effective in meeting special edu­ being misdirected should be investigated. We and are not reaching the disadvantaged con­ cation needs of educationally disadvantaged feel that Title I funds are being used effec­ templated under Title I ESEA. Your brief children? tively in our district. One significant prob­ comments on these contentions would be Answer: It has helped but never enough lem-late funding of programs (during last appreciated. to do a good job. half of fiscal year) make it extremely difll­ Comment: We have always felt that ad­ Recent hearings in Washington disclosed cult to plan and implement effective pro­ ditional funding would enable us to reach that inadequate funding was the greatest grams for current school year. many more pupils who are in need of such obstacle in the path of more effectively reach- January 22, 1970 CONGRESSIONAL RECORD- HOUSE 783 lng the disadvantaged. Others now contend develop a viable program to redress the Association of Indiana, Illinois, and that we cannot effectively utilize extra funds economic imbalance that exists between Kentucky, Inc. This article clearly and contained in the HEW Appropriation Bill urban and countryside America. plainly expresses the views of myself because the funds are being misdirected and and many others who want save the are not reaching the disadvantaged contem­ During my first 4 months of service in to plated under Title I ESEA. Your brief com­ the House of Representatives I intro­ independent oil producers. It fQllows: ments on these contentions would be appre­ duced legislation to create a Presidential To OUR PRESIDENT, RICHARD M. NIXON ciated. Commission on Balanced Economic De­ Volumes of testimony have been presented Comment. In our small system there is velopment. On Apri16, 1967, I said in this to your Task F01·ce on Oil Imports. You have lack of manpower to over come the paper Chamber: received hundreds of letters and telegrams. work to get a federal dollar. There needs to I am not simply calling for a new Presi­ All generally following the same line of be more leeway in meeting our diverse local dential Commission to study yet another thought. needs which categorical aid limits. There national problem. I am calling for a common We, the Independent Oil Producers and has been short term authorization and short sense approach to a problem we have ignored Refiners from America's heartland, Indiana, term planning which has been undesirable. too long. I am calling for a new national goal. Illinois and Kentucky take this opportunity of calling the attention of yourself and the The Huntington, W. Va., Advertiser American oil consumer to a few facts and INFLATION said this bill "could become one of the realities which others have probably here­ most important pieces of legislation in tofore not had the temerity to face. They say gasoline would reduce 2 cents per Mr. RUPPE. Mr. Speaker, we have just The SPEAKER pro tempore (Mr. gallon, this too would be temporary at the listened to a magnificent address by the MADDEN). Under a previous order of the most. Do not forget, gasoline leaves the re­ President of the United States. House, the gentleman from Illinois riority given the need for a revitaliza­ port program will have significant ef­ ernments themselves are already talking of tion of rural America. This portion of the raising the tax on gasoline 2 cents per gallon fect on this vanishing breed of explorers. or more. Labor leaders who have been misled state of the Union message was of par­ On Tuesday, January 20, 1970, there into putting pressure on their Senators and ticular importance to me since one of was a full-page ad carried in the Wash­ Representatives must further realize that my major activities since my election to ington Post and sponsored by the Inde­ wildcatting,·production and refining employs the 90th Congress has been an effort to pendent Oil Producers and Land Owners thousands of men and women. 784 CONGRESSIONAL RECORD- HOUSE January 22, 1970 The wildcatter, producer and refiner re­ industry and to you we a,ppeal for the op­ The state of the union between our ceive scarcely any more !or their product portunity to continue our work and help you than they did during World War II and all save America as an economically independent country and the world is, in some cases, the years subsequent. The loud proclamation and secure nation. based on old premises, rarely reexam­ of inflation has not found its way to them. ined since their foundation; the Presi­ So bad has the financial squeeze and threat dent seeks to build a new union in the of an uncertain future become that hundreds STATE OF THE UNION MESSAGE­ world, one based on reality and mutual of drilling rigs have been and are being THE Bun..DING OF A BETTER TO­ concern for all. scrapped and stacked; drilling crews have and MORROW The union between the present and are finding their way into other industry and in more leave the oil fields and refineries every (Mr. STEIGER of Wisconsin asked the future is now marred by pollution day because of the pending governmental and was given permission to address the our environment, hostility between gen­ threat to our industry; stripper wells are be­ House for 1 minute and to revise and erations, suspicion among nations--and ing plugged; wildcatting and production war. The President has pledged to make h ave and are losing their incentive. We op­ extend his remarks.) our time a bridge between a past that erate on a narrow margin now and the lift­ Mr. STEIGER of Wisconsin. Mr. promised much and a future that will ing of import limitations, thus lowering the Speaker, today, in his state of the Union offer much. price of crude, will destroy us. We are not the message, the President presented us with This state of the Union address was "fat cat" of the industry as we so often hear. a vision of a better America. If any of .this breed of cat exists, we do not He told us that it has become a funda­ historic. It is the first that ever recog­ know where they are and at best they would mental truth that: nized the fundamental truth: no man­ be the relics of an already bygone age. More and no nation and no time-is an is­ properly, we could be called the "alley cats., We can be the best clothed, best fed, best land entire of itself-each is a part of if anyone desires to characterize us With a housed people in the world, enjoying clear the whole. feline expression. air, clean water and beautiful parks, but This recognition that we are bound Consumption of petroleum has now ex­ we could still be the unhappiest people in ceeded 14,000,000 barrels per day. We are the world without that indefinable spirit-­ together in space and time and that without a doubt an importing nation, such the lift of a driving dream which has made what we do now affects all men-this importing must be orderly and with restraint America from its beginning the hope of the recognition is the striking and historic commensurate with the need. We cannot be­ world. theme of this great address. come a wholly importing nation of petroleum. This not only from the standpoint of na­ Mr. Speaker, we are indeed the hope tional security as we so frequently hear, but of the world and have been for 200 years. PRISONERS IN NORTH VIETNAM also from the standpoint of peace. If we are It is up to us now to be worthy of destroyed as an industry, many large inter­ that hope. ministration for the fiscal year 1969; to the Middle East. Mr. BusH in two instances. Committee on Agriculture. It would be my hope that the Chief Mr. PRICE of Texas. 1526. A letter from the Assistant Secretary Executive would have addressed himself Mr. BROWN of Ohio. of Defense, transmitting the quarterly re­ to that problem. I am not impressed by Mr. MATHIAS in two instances. port of receipts and disbursements pertain­ the fact that he said he is going to send ing to disposal of surplus military supplies Mr. WYATT. and for expenses involving the production an overall statement on foreign policy Mr. GOLDWATER in three instances. of lumber products for the first quarter, fis­ to the House in a few days. The situation Mr. PELLY in three instances. cal year 1970, pursuant to the provisions of in the Middle East today deserves our Mrs. REID of Illinois. section 612, Public Law 91-171; to the Com­ highest priopty. Mr. ANDREWS of North Dakota. mittee on Appropriations. Because while right now this involves Mr. ASHBROOK in two instances. 1527. A letter from the Director of Civil De­ a conflict between the Arab States and Mr. SCHNEEBELI. fense, Department of the Army, transmitting Israel, the fact of the matter is if there Mr. CowGER. the quarterly report on property acquisitions is another explosion of hostilities there, of emergency supplies for the quarter ending Mr. BROTZMAN. December 31, 1969, pursuant to the provi­ it will involve the major powers whether Mr. ScHERLE in two instances. sions of subsection 201 (h) of the Federal they wish to become involved or not. I Mr. McDoNALD of Michigan. Civil Defense Act of 1950, as amended; to the think the American people want to avoid Mr. CoLLINS in five instances. Committee on Armed Services. this conflict at all possible costs. Mr. SKUBITz in three instances. 1528. A letter from the Chairman, Board of Mr. Speaker, it would be my hope the Mr. REID of New York. Foreign Scholarships, transmitting the President would seriously reconsider, in Mr. SNYDER in two instances. seventh annual report under the Mutual the light of the French action to rearm Mrs. HEcKLER of Massachusetts. Educational and Cultural Exchange Act of the Arab States and the Soviet action to Mr. DERWINSKI in two instances. 1961 for the period September 1, 1968- rearm the Arab States, in which the August 30, 1969, pursuant to the provisions of Mrs. DWYER. Public Law 87-256; to the Committee on Soviet Union gave Egypt 460 fighter Mr. GOODLING in two instances. Foreign Affairs. bombers and Syria 267 fighter bombers Mr. Bow. 1529. A letter from the Comptroller Gen­ and tankers, our Nation's policy toward Mr. ARENDS. eral of the United States, transmitting re­ Israel and for the United States to give Mr. DEVINE. port on the construction of industrial facili­ Israel 200 bombers now to defend itself. Mr. N'ELSEN. ties at Government-owned plants without The only way to keep a major conflict Mr. GERALD R. FORD. disclosure to the Congress, Departments of from erupting in the Middle East, in my Mr. LANGEN. the Navy and Air Force; to the Committee opinion, is to make sure Israel is strong on Government Operations. DABBO, H.R. 15507. A bill relating to the control of functions and administrative authority now Mr. COWGER, Mr. CRAMER, Mr. DENT, organized crime in the United States; to the vested in the Securities and Exchange Com­ Mr. McCULLOCH, Mr. MACGREGOR, Mr. Committee on Judiciary. mission under the Public Utility Holding POLLOCK, Mr. SIKES, Mr. WHALLEY, By Mr. EDWARDS of Alabama: Company Act of 1935; to the Committee on and Mr. WYDLER); H.R. 15508. A blll to amend title 5, United Interstate and Foreign Commerce. H. Res. 793. A resolution to express States Code, to correct inequities resulting By Mr. ULLMAN: the sense of the House with respect to peace from the exclusion from entitlement to sev­ H.R. 15517. A bill to consolidate the ad­ in the Middle East; to the Committee on erance pay or employees who, at the time of ministration of grants and loans for basic Foreign Affairs. separation from the service, decline to ae<:ept public water and sewer facilites and waste employment in equivalent positions in dif­ treatment works; to the Committee on Bank­ ferent commuting areas, and !or other pur­ ing and Currency. PRIVATE Bll..LS AND RESOLUTIONS poses; to the Committee on Post Office and By Mr. UTT: Under clause 1 of rule XXII, private Civil Service. H.R. 15518. A bill to amend the Tariff Act By Mr. HAGAN: of 1930 to eliminate, in the case of shrimp bills and resolutions were introduced and · H.R.15509. A bill to amend title 5, United vessels, the duty on repairs made to, and severally referred as follows: States Code, to correct certain inequities in repair parts -and equipments purchased for, By Mr. MATSUNAGA: the crediting or National Guard technician such vessels in foreign countries, and for H.R. 15519. A bill for the relief of Ignacio service in connection with civil service re­ other purposes; to the Committee on Ways Gebella Espanola; to the Committee on the tirement, and for other purposes; to the and Means. Judiciary. Committee on Post Offie and Civil Service. By Mr. BENNETT (for himself, Mr. H.R. 15520. A bill for the relief of Fuku­ By Mr. HORTON: BROCK, Mr. BROOMFIELD, Mr. CHAP­ matsu Sato; to the Committee on the Ju­ H.R. 15510. A bill to amend chapter 83, PELL, Mr. CLEVELAND, Mr. DADDARIO, diciary. title 5, United StaJtes Code, to eliminate the Mr. DuLsKI, Mr. EDMONDSON, Mr. reduction in the annuities of employees or FOLEY, Mr. HEI.STOSK.I, Mr. HULL, Mr. ' Members who elected reduced annuities in KEE, Mr. KUYKENDALL, Mr. McCLOS­ MEMORIALS order to provide a survivor annuity if prede­ KEY, Mr. MlKVA, Mrs. MINK, Mr. Under clause 4 of rule XXII, ceased by the person named as survivor and OLSEN, Mr. PRYOR Of Arkansas, Mr. 273. The SPEAKER presented a memorial permit a retired employee or Member to des­ PlntCEIJL, Mr. RARICK, Mr. REIFEL, Mr. of the Senate of the General Assembly of the ignate a new spouse as survivor if prede­ RUPPE, Mr. SAYLOR, Mr. SCHERLE, and Commonwealth of Kentucky, relative to es­ ceased by the person named as survivor a.t Mr. SKUBITZ) : tablishing January 15 as a legal holiday hon­ the time of retirement; to the Committee on H.R. 15521. A bill to amend the act of June oring Dr. Martin Luther King, Jr.: t.o thq Post Office and Civil Service. 27, 1960 (74 Stat. 220), relating to the pres­ Committee on the Judiciary. By Mr. MATSUNAGA: ervation of historical and a.rcheologioal data; H.R. 15511. A bill to authorize the U.S. to the Committee on Interior and Insular Commissioner of Education to establish edu­ Affairs. PETITIONS, ETC. cational programs to encourage understand­ By Mr. BENNETT (for himself, Mr. ing of policies and support of activities de­ STEPHENS, Mr. TIERNAN, ~. TuN­ Under clause 1 of rule XXII, signed to enhance environmental quality and NEY, Mr. UDALL, Mr. WALDIE, and Mr. 377. The SPEAKER presented a petition of maintadn ecological balance; to the Commit­ VANIK): the chairman, National Association of State tee on Education and Labor. H.R. 15522. A bill to amend the act of June Universities and Land Grant Colleges Water By Mr. MOSS: 27, 1960 (74 Stat. 220), relating to the pres­ Resources Committee, Pullman, Wash., rela­ H.R. 15512. A bill to create a comprehen­ ervation of historical and archeological data; tive to proposed legislation to amend the Wa­ sive Federal system for determining the own­ to the Committee on Interior and Insular ter Resources Research Act of 1965; to the ership of and amount o! compensation to be Affairs. Committee on Interior and Insular Affairs.

SENATE-Thursday, January 22, 1970 The Senate met at 12 o'clock meridian and lofty patriotism and with pure re­ dent. Give him wisdom and strength for and was called to order by the Vice ligion. Guide us in the use of natural re­ his solemn responsibilities, that he may President. sources and in the employment of the grow in the knowledge of Thee and of The Chaplain, the Reverend Edward new revelations of science. Spare us from Thy kingdom. L. R. Elson, D.D., offered the following violence, panic, and enervating fear. Through Jesus Christ our Lord. Amen. prayer: Grant us poise and peace and spiritual power. Unite the people with their gov­ Almighty God, source of our being, WELCOME TO THE VICE PRESIDENT sovereign ruler of men and nations, bless ernment in common devotion to the this land which Thou has given us. Abide higher order and better world Thou hast Mr. MANSFIELD. Mr. President, wei­ in our hearts and in our homes. promised to all who seek first the king­ comeback. Strengthen our institutions. Visit our dom of God and His righteousness. The VICE PRESIDENT. Thank you, cities, towns, and countryside with a new Bestow Thy blessing upon the Presi- sir.