t953 CONGRESSIONAL RECORD -HOUSE 2333 Also, memorial of the Legislature of the · By Mr. OSMERS: 114. Also, petition of Lithuanian Demo State of Colorado, memorializing the Presi H. R. 4252. A bill for the relief of Geralda cratic Club, Inc., of Newark, N. J., requesting dent and the Congress of'the United States, Lillo and Karl Heinz Lillo; to the Committee enactment of legislation to amend the social to consider }egislation allowing a Federal in on the Judiciary. security laws allowing payment of benefits come-tax deduction for certain military, Air - By Mr. POWELL: to everyone in covered employment upon . Force and naval reservists; to the Committee · H. R. 4253. A bill for the· relief of Walter their having attained the age of 60 years; to on Ways and Means. Adolphus Burke; to the Committee on the the Committee on Ways and Means. Also, memorial of the Legislature of the Judiciary. 115. Also, petition of Ibrahim Velutini, State of Minnesota, memorializing the Presi By Mr. ROGERS of Colorado: President, Caracas, Venezuela, relative to dent and the Congress of the United States, · H. R. 4254. A bill for the relief of Aneta legislation which would tend to reduce the with respect to Federal taxes on gasoline and Popa; to the Committee on the Judiciary. · importation of Venezuelan petroleum; to motor fuel; to the Committee on Ways and By Mr. SCUDDER: the Committee on Ways and Means. Means. H . R. 4255. A bill for the relief of Victor Also, memorial of the Legislature of the Manuel Soares De Mendonca; to the Com State of North Dakota, memorializing the mittee on the Judiciary. President and the Congress of the United By Mr. SIKES: States, relative ..to limiting influx of foreign H. R. 4256. A bill for the relief of Magda HOUSE OF REPRESENTATIVES agricultural products; to the Committee on Manoli; to the Committee on the Judiciary. Agriculture. By Mr. SMALL: THURSDAY, MARCH 26, 1953 H. R. 4257. A bill for the relief of Will more Engineering Co.; to the Committee on The House met at 12 o'clock noon. PRIVATE BILLS AND RESOLUTIONS the Judiciary. The Chaplain, Rev. Bernard Braskamp, By Miss THOMPSON of Michigan: D. D., offered the following prayer: Under clause 1 of rule XXII, private H. R. 4258. A bill for the relief of Katharina bills and resolutions were introduced and Steinbach; to the Committee on the Judi- . Most merciful and gracious God, grant severally referred as follows: ciary. that we may go forth in the hours of this By Mr. WESTLAND: day with a more adventurous and stead By Mr. BARRETT: H. R. 4259. A bill conferring jurisdiction . H. R. 4234. A bill for the relief of Alessan fast faith in Thee and in the. ultimate upo~ the United States Court · of Claims to triumph of the true and the good. dra Barile Altoboelli; to the Committee on hear, determine, and render judgment upon • the Judiciary. the claim of Spencer C. Clark for extra com We humbly confes~ that we so fre By Mr. BENDER: . pensation for Sunday, holiday, and overtime quently allow our faith to become H. R. 4235. A bill for the relief- of Edward services performed between 1929 and 1942; eclipsed by doubt · and by difficulties Zepp; to the Committee on the Judiciary. to the Committee on the Judiciary. which seem insurmountable. By Mr. BYRD: Help us to understand that if our ·H. R. 4236. A bill for the relief of Nahi faith is to be vital and strong, then we Youssef; to the Committee on the Judiciary. PETITIONS, ETC. must cultivate it and guard it, for eternal By Mr. BUCKLEY: Under clause 1 of rule XXII, petitions vigilance is the price of faith as truly H. R. 4237. A bill for the relief of Osjasz and papers were laid on the Clerk's desk Hersh Braksmajer (Sam Braksmayer), Rysa as it is the price of freedom. Margolit Braksmajer, and Mosher Braksma and referred as follows: Hear us for the sake of our· blessed Jer; to the Committee on the Judiciary. 107. By Mr. CANFIELD: Petition of the Lord. Amen. By Mr. CONDON: New Jersey Association of Nurserymen recording its vigorous opposition to the pro The Journal of the proceedings of yes • H. R. 4238. A bill for the relief of Mrs. Julia terday was read and approved. Adele Vence; to the Committee on the Judi posed changes relating to peat moss balls, and its support of additional restrictions ciary. governing such importations due to the ever By Mr. DEVEREUX: H. R. 4239. A bill for the relief of Arthur present danger of introducing new and dan COMMITTEE ON THE JUDICIARY gerous pests to the United States of America K. Jefferson; to the Committee on the Judi and the increased danger that would result Mr. GRAHAM. Mr. Speaker, I ask ciary. if the regulations of quarantine No. 37 wer'e unanimous consent that the Committee By Mr. DOYLE: modified as now proposed by the United on the Judiciary may have until mid H. R. 4240. A bill . for the relief of Arturo States Department of Agriculture; to the · night tomorrow in which to file a report Ordonez; ·to the Committee on the Judiciary. Committee on Agriculture. on the bill H. R. 4198. By Mr. HELLER: 108. By Mr. SMITH of Wisconsin: Reso The SPEAKER. Is there objection to. H. R. 4241. A bill for the relief of Oscar lution of the National Defense League of Neumann, Mrs. Magdalena Neumann, a~d America, Inc., to the end that the Congress the request of the gentleman from Penn Judith Gabrielle Neumann; to the Commlt of the United States of America as the duly sylvania? tee on the Judiciary. elected Representatives of all the people of There was no objection. By Mr. HOLIFIELD: this Republic, initiate action to cause im H. R. 4242. A bill for the relief of Mrs. Rosa mediate withdrawal of this Republic's mem Barroso De Orozco; to ·the Committee on the bership in the United Nations; to the Com REDUCTION OF MILITARY DOCTORS Judiciary. mittee on Foreign Affairs. H. R. 4243. A bill for the relief of Kuo Lum 109. Also, resolution adopted by Board of Mrs. ROGERS of Massachusetts. Mr. Leong; to the Committee on the Judiciary. National Trustees of the National Society of Speaker, I ask unanimous consent to By Mr. HUNTER: the Sons of the American Revolution that address the House for 1 minute and to H. R. 4244. A bill, for the relief of Ara Constitution Day be reestablished and the revise and extend my remarks and in Giragos Farajian; to the Committee on the resolution by Congress signed by the Presi clude therein an article by Mr. John G. Judiciary. dent on February 29, 1952, creating Citizen Norris in the Washington Post. By Mr. KEOGH: ship Day, be repealed; to the QQmmittee on The SPEAKER. Is there objection to H. R. 4245. A bill for the relief of Louis the Judiciary. the request of the gentlewoman fr'om Rizzi; to the Committee on the Judiciary. 110. By the SPEAKER: Petition of the Massachusetts? By Mr. MAILLIARD: city clerk, city of Indio, Calif., to provide H. R. 4246. A bill for the relief of Light funds for adequate hospitalization for the There was no objection. Liang-liang; to the Committee on the Judi needy and ill veterans of the United States Mrs. ROGERS of Massachusetts. Mr. ciary. Forces; to the Committee on Appropriations. Speaker, today's Washington Post says By Mr. MILLER of Maryland: 111. Also, petition of Edith Johnson, and that Defense Secretary Charles E. wn.: H. R. 4247. A bill for the relief of William others, Brockton Townsend Club No. 5, son has ordered a 9-percent cut in the R. Jackson; to the Committee on the Judi- Brockton, Mass., requesting passage of H. number of Army, Navy, and Air Force ciary. R. 2446 and H. R. 2447, social-security legis lation known as the Townsend plan; to the doctors. I only hope that he is right in By Mr. MORANO: Committee on Ways and Means. ordering that cut and that the doctors H. R. 4248. A bill for the relief of Albertas 112. Also, petition of Mrs. E. E. McNeely, are not needed. Our forces in Korea Bauras; to the Committee on the Judiciary; and others, of Orlando, Fla., requesting apparently have had a shortage of arms By Mr. MORRISON: passage or' H. R. 2446 and H. R. 2447, social and ammunition, but they have had the H. R. 4249. A bill for the relief of Mary Wy security legislation known as the Townsend shoff; to the Committee on the Judiciary. most excellent meout the kind of union or confederation for their dog walking on its hind legs," one Stras (By John G. Norris) . l:>ourg first-timer said. "It is not done well, Defense Secletary Charles E. Wilson has mutual defense and benefit. This first meeting was immeasurably exciting, re but you are surprised to find it done at all." ordered a 9-percent slash in Army, Navy, THE DIFFERENCES and Air Force doctors and proposes skeleton minding one of the accounts of our own izing 4 or 5 of the 7 Army divisions· in this Constitutional Convention, which was a What is different about this new European country. forerunner of the union of the Colonies constitution as opposed, say, to the 1949 Pentagon officials said that Wilson feels model, the Council of Europe Treaty. and the drafting of the Constitution of In a sense the differences are more in that with 750,000 young soldiers leaving the the United States. service this year after 2-year draft periods, herent than they are apparent. You can combat units in this Nation's mobile re Anyone making comparison of these look at this new draft constitution of 116 serve can well be cut to as much as half two amazing efforts to bring together articles, a.nd you can say, "This means strength. The new veterans, many of people of different backgrounds must be nothing," or "That is impractical," or "This them fresh from Korean combat, would be aware of the fact tha.t in the case of the won't work." available for quick recall to fill out the divi American Colonies they had just been On the ot-her hand, you can also say about sions in case of any new war, he argues. successful in a war of independence. In the same articles and the same ideas, "This Army chiefs oppose his plan and the. plan the case of Strasbourg, although the Eu is workable," or "This might grow into some still is not resolved. Wilson, however, is thing." ·known to be pressing for approximately a ropean nations, too, had recently united Where the Council of Europe statute sets 10-percent cut in the present 3,500,000- and waged successful war against a up a confederation of 15 countries and rather man-plus armed services. powerful enemy, there was little in their rigidly define·s the competence of the assem The doctor cut, however, already has re history but bitterness, suspicion, and pe bly of that federation by the principle of ceived a go-ahead signal from Wilson. It riodic war with each other. Add to this unanimous endorsement, the six-nation con-· will mean lower draft calls for physicians, the fact that they did not speak a com stituti_on is more flexible in l:>oth directions. and reducing the number in the Armed mon language, and one sees that the sit For example, article 81 of the constitution Forces from the present 13,300 to about uation they faced in seeking some form states: "The community shall establish pro 11,900. gressively a common market among meml:>-er. A spokesman for the Armed Forces Medi of unity was very difficult indeed. states, based on free movement of goods, cal Policy Council said it already had in Mr. Speaker, on the 15th of this month capital, and persons." In conjunction ·with structions to lower the ratio of doctors from there appeared in the New York Herald this article 50 states: "The community shall 3.7 to 3.5 per thousand and will call for Tribune, over a Strasbourg dateline, a E_lnact legislation in the cases provided for only 1,200 instead of 1,800 young medical most interesting story of what has just in the present statute." men in the second quarter of calendar 1953. taken place there, 4% years after that It can be argued that this is vague, but There has peen no discussion on cutting the first epoch-making meeting in the late equally it can be argued that with skill and number of dentists and v~terinarians to be summer of 1949. It is an exciting story, hard work this can be as vital and dynamic called. a constitutional provision as the general Wilson's plans to reduce the Armed Forces giving the stirring news that "at the end clause of the American Constitution, from to something like 3,300,000 would require of 4 days' debate the draft treaty was which the powers of . the American Congress about 600 fewer doctors and lower draft approved by a vote of 50 to 0 with 5 evolve. It can be seen that the parliamen calls. Even so, the Defense Department still abstentions." tary machinery, and the reserve powers of will need to induct medical men, and has · The treaty referred to is a European governments to delay, block, or hamper leg sent to the Bureau of the Budget legislation constitution to link six nations in a islation can render the constitution null if to extend the special doctors' draft until supranational political federation. The not void, but equally it could work the 1955·. nations are France, Holland, Belgium; other way. Pentagon spokesmen also said yesterday 50 0 Luxembourg, West Germany, and Italy. VOTE IS TO that, in accordance with long standing At the end of 4 days' debate the draft was plans, draft calls will taper off after July 1. The ayes included German Christian approved by a vote of 50 to 0 with 5 absten . Only 450,000 men will be needed from se Democrats and French Centrists, Italian tions. The ayes included German Christian lective service during the fiscal year begin rightwingers, and Belgian leftwingers. Democrats and French Centrists, Italian ning in July-an average of 37,500 a month. It was a remarkable and an unexpected rightwingers and Belgium leftwingers. It This compares with 53,000 monthly now and vote, one which all thoughtful people the was a remarkable and an unexpected vote, 47,000 last fall. The reason, however, is that world over should herald with joy. but the reason in hindsight seems to l:>e that heavy calls now are necessary to replace the Surely it brings .an increasing hope for everybody had been working to the same heavy monthly inductions right after Korea. ideal if not the same ideas. Later, calls were lowered and the number European unity, a step toward a free When all was said and done, and when the of men required to replace those leaving the world. French De Gaullists had argued against the service next fall and winter after 20- to 24- Mr. Speaker, under unanimous con Dutch Liberals, the result was a sharpening . month draft periods will tie less. (Many sent, I insert the Herald Tribune article:. of the work rather than its diffusion. men returning from Korea are released The debates took place in the Council of ahead of the required 2-year draft tour.) SIX-NATION CONSTITUTION-STRASBOURG VOTE ON DRAFT TREATY Is FmM STEP TO EUROPEAN Europe Building, a long, white structure, UNITY which, if not a distinguished piece of archi SPECIAL ORDER GRANTED tecture, is nevertheless one of the most pleas STRASBOURG.-For 4 years now European ant and efficient bui!dings of its kind. parliamentarians, politicians, and ministers Mrs. FRANCES P. BOLTON asked and The assembly hall is excellent acoustically was given permission to address the have been regularly sweeping in and out of this fine old Alsatian city in the name of and visually. The lounges are comfortable House for 5 minutes today, following the Europe unity. They have had about the and the press facilities first class. This phys special orders heretofore entered. same effect as a gentle tide that recedes and ical fact, plus the excellent cuisine of Stras leaves the shore a little damp, soon to dry l:>ourg and its 'blend of · French-German out, l:>ut otherwise unchanged. speech, culture, and background, has been EUROPEAN UNITY COMES A STEP an important magnet these last 4 years. CLOSER TO PRACTICAL REALIZA Last week in Strasl:>ourg it was different. TION . The difference was one of vitality, of a THE ROLE OF FOOD sense of purpose and direction, and most of "The way to European unity is through Mrs. FRANCES P. BOLTON. Mr. all a feeling of achievement-that at last the stomach," a German remarked over a Speaker, I ask unanimous consent to ad- something solid had happened in Strasl:>ourg. meal of pate de fois gras and Coq au Reisling. 1953 CONGRESSIONAL' RECORD -- HOUSE 2335 Whatever the substance of the remark, It Is certainly true that the Strasbourg habit is · :But -it i~ aiso my ~pinion that the If we permit a 10-percerit drop in our one that parliamentarians from all over Government, through ECA so-called price level, we will lose $29 billion of Europe unanimously have enjoyed, whatever fpreign · aid, also contributed to this .income. In like manner, if we lose 10 the importance of the work they have gouging of consumers. percent of our production we will also done here. · On March 29, 1950, I pointed out here lose $29 billion of income. Our first step Now these men who have debated and in the well of this House, that the ECA then in maintaining a prosperous and approved the draft of a new constitution feel in 1949, purchased 61,000,000 pounds of a sense of accomplishment as well. They solvent United States is to maintain both left here in a remarkably determined mood, coffee at a cost of more than $16,000,000 our production and our price level. for the most part, to keep the heat on their for shipment to foreigners. · In the year 1952 we spent about 96 governments at home and not let their good I contend that this fantastic coffee percent of our income in supporting our work strangle in the slow mechanics of gov deal on the part of the ECA helped spec domestic economy and about 4 percent ernment ratification. ulators pry the lid off coffee prices and was JfSed to buy products imported from everyone knows these prices have never the rest of the world. There has been been the same since. a lot of propaganda during the past 6 AID FOR MIDDLE INCOME HOUSING . A committee of the other body has in months to initiate a program of trade, Mr. JAVITS. Mr. Speaker, I ask vestigated coffee prices but as far as I not aid, to help the rest of the world. unanimous consent to address the House know there has been no effort to ascer Under this program our tariffs are to be for 1 minute and to revise. and extend tain why, in the name of food relief for reduced so as to make room for cheap my remarks. foreigners, the ECA used more than imports from other nations. The SPEAKER. Is there· objection to $16,000,000 of the taxpayers money to Let us examine this type of program. the request of the gentleman from New buy 61,000,000 pounds of coffee to give I have pointed out that 96 percent of our York? away to foreigners. income in 1952 was utilized in the do There was no objection. Mr. Speaker, even at· this late date mestic market and 4. percent to buy Mr. JAVITS. Mr. Speaker, I am to some committee of this House ought to imports. If we expand our domestic pro day introducing a bill to provide $3 bil ascertain why the ECA bought this cof duction 10 percent, we affect 96 percent lion in credit to middle income hous fee and to what extent this deal aided of our national income. If we expand ing and to guarantee an interest rate of the speculators in skyrocketing the price our imports 10 percent, we affect an ex 4 percent. I do this by providing that of coffee. pansion of only 4 percent of our na Fannie May, the Federal National tional income. Stated in another way, Mortgage Association, shall have author THE ECONOMY OF THE UNITED the ratio of our economy in terms of do ity to repurchase mortgages placed on STATES _ AGRICULTURE _ OUR mestic trade and foreign trade is 24 to 1 middle income housing under section in favor of domestic expansion. 207 of the National Housing Act, which FISCAL POLICY Expansion of our domestic production is housing for rental, and under section Mr. JENSEN. Mr. Speaker, I ask and income will automatically increase 213, cooperative housing, all for middle unanimous consent to address the House. our needs for more imports of materials income families. · The SPEAKER. Is there objection to in short supply. This is not true of an Mr. Speaker, there are still 28 million the request of the gentleman from Iowa?. expansion in our imports of cheap rna units in the United States under rent There was no objection. terials. Expansion of our imports could control. This shows that in the big city Mr. JENSEN. Mr. Speaker, the course easily break down our price level 10 per there is a great housing emergency; in of human events haS' placed the United cent, if these i~ports are permitted to fact, people are moving out of the big States in a position of world leadership. come in below our American cost level. cities and going to smaller places-those Our ability to utilize our position to bet- If such a reduction in otir price took who can afford to buy homes. The ter the economic situation in the rest of place we would lose $29 billion or far whole FHA and VA picture shows that the world will depend upon a thor·ough more than any possible benefit we could we put some $38 billion-! repeat that t.mderstanding of our own economy. obtain through the expansion in imports. figure-$38 billion into more than 6 mil The economy of the United States has In my opinion we · have no right to lion individual mortgages, into credit given our people the highest standard of force any American producer to go out backing for home ownership. I think living of any nation in the world. We of business because of imports produced the least we can do is to put $3 billion, have a little over 6 percent of the world's with a lower wage level and a lower tax 10 percent of that, into cr.edit to back up · population and produce approximately level. In helping the world in the past, city apartment dwellers who today are 25 percent of the world's goods. Due to we have brought about $270 billion of moving out of cities because they can the fact that we have a greater per man national debt. At the present time the not find apartments to rent within their production, we also have a greater turn- American producer has to pay approxi means. over of money in trade channels and mately 25 percent of the national in This is private enterprise; it is noth with a production of 25 percent of the come to the Federal Treasury. Pro- . ing but the underwriting of 4 percent world's goods we generate 45 percent of ducers in other lands do not have to mortgage money in the traditional way the income of the world in terms of support the costs of our Government. in which the Government has done it. I dollars. For example, here is an illustration. believe it is a duty which the Congress With this tremendous buying power, Companies producing alumi.num have to urgently owes the American people. we consume about 50 percent of the pay 6 cents per pound to the Federal world's mineral production such as lead, Government in taxes for the privilege copper, zinc, manganese, coal, petroleum, of producing in the United States. In THE COFFEE RACKET and so forth. Therefore, we find that all fairness to these producers, an im Mr. GROSS. Mr. Speaker, I ask ·the prosperity of the world is largely de- port fee or excise tax of 6 cents per unanimous consent to address the House pendent upon the buying power of our pound is merely a matter of equity and for 1 minute and to revise and extend American economy and if we wish to fair treatment for our own source of my remarks. help the world into a new. era, the most production and income. The SPEAKER. Is there objection to important step in operating our· own Our American economy has had in the request of the gentleman from economy is to keep it solvent, productive direct price supports since its begin Pennsylvania? and prosperous. ning, the first session of Congress hav- There was no objection. . In · the year 1952, the United States ing passed a tariff act as a source of Mr. GROSS. Mr. Speaker, with coffee had a national income of $291 billion• • Federal . revenue and as a protection prices now at or scraping $1 a pound, We obtained this income in two ways. against exploitation of our markets. housewives of this country are entitled :fllrst, by producing a certain number of Free trade in addition to meaning a loss to know who is doing what to whom and units of goods and services; and second, of revenue from import fees also means why. by multiplying this production by the to remove all protection for our price There is no question in my mind but 1952 price level. Many of our theorists level. what speculation has played a part, per forget that we must maintain our pro- The effect of such a step should be haps a major part, in tnis victimizing duction and price level if we are to retain self-evident. The United Nations re ·of housewives and the consuming public. the $291 billion of national income. leased· a report which states that the XCIX--147 2336 CONGRESSIONA1 RECORD - HQUSE March 26 annual income of two-thirds of the little. producers have a right to protec and our agricultural production times world's population is $200 per capita. tion and if permitted to continue they ,our agricultural pri"ce level is the source Free trade would mean that our price may some day be large industries. Under of our national income. For the past 30 level would have to be determined by free trade we would automatically set the years each $1 of gross farm production the average buying power of the rest of stage for a few large industries to take has resulted in $7 of national income. the world. advantage of their position in world To be exact, in the period 1929 to 1952, In the United States the average in- markets, while the many small busi inclusive, the ratio has been $7.06 of dustrial wage is sufficient to make each nesses in the United States would be national income for each $1 of gross worker a potential buyer of an automo- forced to close. farm income. The ratio is irrefutable bile. Two-thirds of the world's popu- · Our income depends upon two factors, and unless we recognize its importance, lation with an average annual income of production and price. Displacement of we will fail to take the steps to prevent $200 cannot pay the operating costs of our production through imports or the another depression. driving the autoJnobile if we give them breaking down of our price level will Our business leaders in discussing the one as a gift. mean a loss of national income and in drop in farm prices do not realize that It has long been recognized that the turn a bankrupt nation. I, as a Member our national income is going to drop $7 rest of the world has been short of food. of Congress am not going to vote for leg for each $1 that farm income has fallen Free trade would mean the flow of food islation which will destroy our income off. Because of this seven times turn of to the United States, forcing other na- and our economy. gross farm income into national income, tiOnS to do WithOUt. Instead Of help- THE AGRICULTURAL INDUSTRY we must stop thinking in terms of the ing .them we would force them to starve The drop in farm prices has again sent costs of farm price supports. We should while our own producer would have to fear through our agricultural szctions. be thinking of the ioss the Nation will suffer lower prices, Lower prices in the It should send fear into the hearts of suffer. United States would mean national every American. Constant falling farm Let me illustrate. In the period bankruptcy and this in turn would de- prices indicate that we are again head 1930-41, because the United States did stray the only remaining foundation for ing into a depression. Let us not shut not maintain the 1929 farm price level, world recovery. our eyes to that.fact. we took a loss of over $500 billion of na Another factor we must remember in The Members of Congress should be tional income. addition to our national debt is our pri- asking themselves the question, Can we In 1948-49, we had what some folks vate debt. Domestic producers have stand another depression and win the call a recession. The record reveals that had to buy and use materials on an battle against communistic ~ggression? the United States lost $20 billion of in American wage and cost level. These I think most of you will say we cannot come which we would have had if 1948 materials have been used in expanding permit it to happen. But it is happening farm prices had prevailed. The record our factories, farms, and mines. Yes, in the same way that we had a depres is clear in its proof of this loss. In the these costs have also gone into homes, last quarter of 1948 our level of national the mortgage in many cases underwrit- sion in 1920, in 1929, in 1938, and in 1949. What prevents us from taking the steps income was $234.3 billion. By the last ten by the Government. t t t f quarter of 1949 it had dropped to $214.2 In 1939, our total public and private 0 preven his recurrence of low arm prices? billion. · debt was $185 billion. In 1952· this total In my opinion, it is the lack of under- The loss was entirely due to the drop reached $540 billion. This debt cannot in farm income of about $3 billiori. The be repaid out of a price level determined standing on the part of society. The wage level of our industrial workers from · f th citizens of this great Nation and many by slave labor in many nations 0 e of our business leaders do not realize the 1948 to 1949 was raised 5 cents per hour. world. Therefore, the loss cannot be blamed on Unless we wish to have our Nation go importance of agriculture. Let me lower wages. In spite of this raise of 5 into an economic collapse we must rec- briefly point out to you the real meaning cents per hour labor had to take its cut. ognize realities. Free trade will destroy of this drop in farm prices. The cut came in a drop in our industrial our price level. we must, therefore, On January 1, 1952, the agricultural payrolls. Enough men had to be laid off find some other solution and I feel that industry had a capital investment of either entirely or part time to make the we· can find an answer to our trade with $168 billion. This total is approximate adjustment to meet the drop in national other nations while at the same time ly- four times the capital investment in income of $20 billion. protecting our own producer and, of our railroads, our steel industry and our Our total industrial production in 1949 greater importance, our national income. automobile industry. In spite of this was cut back 9 percent below the 1948 The answer to our trade problem is huge capital investment our business level and this in terms of 1948 national equity of trade. We should at all times leaders do not look upon agriculture as income was equal to $20 billion. The stand ready to pay the world a compara- an industry. Therefore, they are unwill amazing thing about it all is that our tive price for imports which we need to ing to concede that the agricultural in economists in Government and business supplement our own economy. dustry in order to operate efficiently and have failed to mention this loss of $20 For example, Congress in 1948 passed to expand as a foundation for the future billion and called it a slight recession. the Sugar Act. Under this act, through growth of the United States must have a Of interest to me · is ·the comment ot quotas and duties we protect our domes- price for its production which will per eastern newspapers regarding the drop tic sugar producer and at the same time mit it to operate with the same profit in cattle prices. They hail the drop with we permit sugar imports, equal to about which other industries expect as their delight and think in terms of cheap 70 percent of our needs to come in from natural right. meat. They fail to realize that the loss other nations at a fair price to them. Since the 1938 Farm Act was written, in gross farm income as a result of lower Wool could be used in a similar illus- the price which the farmer is entitled to· cattle prices will force a loss of seven tration. We import about 70 percent of receive has been designated by Congress times that amount in national income. our . requirements. Assuming that 60 as parity. Parity in business terms Yes, it may be the first step into another cents per pound is the American cost means the cost of production plus a depression, a depression that may exceed level, no wool should be permitted to profit which is equal to the average of the terrible conditions of unemployment come in for less than 60 cents. On the all other industries in the United States. which we experienced in the thirties. other hand, we should be willing to pay Opposition to such legislation has been What can Congress do to prevent a de a comparable price for imported wool, widespread and again I wish to state it is pression? We can take steps to restore thus creating the dollar exchange for due to lack of understanding. If society our farm-price structure and stop this other nations to buy an equivalent • realized that parity prices for our agri unnecessary danger of economic collapse. amount of our goods. . cultural production is a must in any pro- VIe can demand that those who admin As a Member of Congress, I have taken gram of prosperity and economic expan ister our farm program take the positive an oath to protect the welfare of the sion and that farm income is the founda steps which need to be taken to not only American people. I do not feel that I tion which supports and protects the make the 90-percent price supports ef have the right to permit the pa~sage of markets for our industrial production fective but in addition to yield 100 per legislation which will destroy some and the wages of our workers, this oppo cent and thus.restore the foundation for American industry and thus create a sition wouid vanish. the national income we will need to bal market for imports from nations with a Briefly here are the facts. The agri ance the budget and meet our obliga-· low wage and cost level. To me these cultural industry is our basic industry ti6ns. 1953' CONGRESSIONAL RECORD -- HOUSE • 2337 The first step · in -_getting · the proper entire Nation against economic collapse. brought about by the drop in our price . administration in my opinion is to de~ It is time to face realities before it is level and the loss of national income. mand a full-fledged· investigation of the too late. Of course, we can assume that the cost of living. The unwarranted cry of OUR FISCAL POLICIES price drop will not come. But what as high-livin·g costs cannot be substan- As a member of the Appropriations surance have you and I, as Members of tiated. · Committee, I would like to make a few Congress, that the price drop will not · In 1939 the American public spent 21.8 comments upon our fiscal policies. Dur take place? The answer is none unless percent of its income for food. The per ing the 1952 political campaign, theRe we take the steps to stabilize our prices centage of national income spent for food publican Party promised the people, that at a level which will assure the continua.; in 1951 and 1952 was also 21.8 percent. if elected, we would balance the budget tion of the $291 billion of national The point I wish to drive home is that in and bring about tax reduction. income. · the turn of farm income into. national The matter of balancing the budget In the period from March 1951 to the income, the cost of living does not de can be set out in very simple terms. present, the price of 35 leading raw ma crease when farm prices drop. It is true We must cut back appropriations to meet terials-Associated Press Index, 1926, as that those who retain their jobs in a de the tax revenue or we must increase the 100-has dropped 17 percent. What as pression have a lower living cost for food tax revenue to meet the appropriations. surance have we that it will not drop and other items. But, if they had to I am concerned, however, with the another 17 percent in the next 2 years? pay the taxes to keep those who are dis economic factors which enter into the We have none. employed as the result of lower farm probl.em of having a sound fiscal policy. Our situation as representatives of prices they would have an increase in In the year 1952 we had a national in the people of the United States forces us their cost of living. For example, in 1932 come of $291 billion. The Federal reve to answer this question, How can we talk with farm prices at their low point since nue represented about 25 percent of this about balancing the budget or reducing 1929, it required 27 percent of the na total. the taxes when we do not have the tional income to pay the food bill in the slightest idea of what our national in United States. Tax levies, in many cases, are at a very high level and there is not much incen come is going to be 12 months from now? The second reason why an investiga Are we not just as helpless as babes in tion to explode this fallacy of high costs tive left for many of our corporations· to expand their dollar volume. Many the woods? of living is necessary, is to head off a What can we do· about it? is the next :inove to bring in cheap products from corporations have had a reduction in their net income, or income after taxes, question. Article I, section 8, of· the other nations. Our economists talk Constitution of the United States, gives about these cheap imports in terms of even though their volume of production has increased since 1950. Congress the right to coin money, regu~ efficiency of foreign producers when in late the value tbereof and to regulate fact it is the results of low wages and The problem that I · want to call to your attention is the matter of national foreign and domestic commerce. The lower taxes. matter of our price level falls directly The American farmer is the most effi income. My committee is meeting day after day discussing various appropria into the problem of regulating dollar cient ·in terms of per man production in values. We cannot have a stable dollar the entire world. Because of his em tions. Supposing that after a few unless we have price stability. ciency the American people need spend months we agree on total appropriations, Our first step in balancing the budget only 21.8 percent of their income for food what assurance do you and I have that should be price stabilization as an assur as compared to 70 percent in Europe and the money will be available? · ance that we will have the income upon over 90 percent in India and China. Let us assume that during the next which to levy the taxes we need. There The facts are that because of this low 12 months the price level for our pro is no question aqout our ability to pro food cost in the United States the Amer duction falls off 20 percent. This will duce and if we take the steps to stabi ican people have about 78 percent of mean a drop of $58 billion in national lize our price level there need be no doubt their income to spend for cars, radios, income. On the basis of tax levies repre as to the income we can create by our television, vacations and· those things senting 25 percent of the national in production. which make up our American standard come this would mean a loss of $14.5 What steps can we take? We can of living. The people of other nations billion in tax revenue. Our supposedly through price supports, patterned after are lucky if they have enough left to balanced budget would vanish in thin the price supports for agriculture sta buy a bicycle. air. bilize our price level for basic raw mate To illustrate the efficiency of the Due to the fact that most of our tax rials from our farms and mines at the American farmer let me make this point. revenue depends upon income, a drop American cost level. This in turn will Since 1929 the per man production of of $58 billion in our nat~onal income support the nationa! income and the the average worker in the agricultural would mean a much greater loss than market for our production and support industry has exceeded that of the aver $:!.4.5 billion as losses are deducted from the price of these raw materials at the age industrial worker with the advan operating income. proper level as they move through our tage of management and mass produc Since 1946, we have had an increase economic cycle to_the consumer level. tion. of approximately $130 billion in our pri These price supports should be looked It is lucky for all of us that this has vate debt. This debt was created in the upon as a support of our national income been the case. Over 70 percent of all expansion of our productive economy. and as the support for our fiscal policies. goods sold -at retail are made up of food, Some money was spent in building fac You have the right to ask, What will beverage, shoes, clothing and tobacco. tories at an American cost level for wages it cost? Supposing a program of stabi It follows that 70 percent of all labor in and materials. Other sums were spent lizing our raw-material prices brought the United States is engaged in produc for farm buildings, farm equipment, fac about a loss of $3 billion a year? To ing, processing and distributing farm tory equipment, homes and Government charge this off against a national income products. To reduce farm prices means construction. of $291 billion would still leave us with to reduce directly the dollar income of The cost of this borrowed capital must $288 billion of national income. every step in the movement of farm be met out of income and in the event The next question which I would like products through our economy. that our price level dropped 20 percent, to ask is, Would it not be good business Farm price supports are in reality a this cost would have to be met out of a to spend $3 billion to protect ourselves support for our national income and a reduced income and the loss to our Fed~ against loss of the $58 billion I have men support for the future growth of our eral Treasury would pyramid. tioned or against a loss of $150 billion economy. We cannot expand to any In case of a price drop, we would have of national income if we should fall back greater extent than the foundation built unemployment and the Government to 1939 ·price levels? for expansion by the agricultural indus would have· to pay unemployment com Our experience with farm-price sup try. pensation out o:! an empty Treasury. ports would indicate that the cost is In denying the farmer a parity price The Government has guaranteed the small, indeed, compared to the benefits for his production, we deny ourselves repayment of billions of dollars of hous we would receive. . the national income we need for · pros ing loans. These loans will have to be If · we as a nation can appropriate perity and economic growth. Once that guaranteed out of an empty Treasury. $50 billion a year in military equipment message is driven home, we will be glad The point I wish to make is that these to protect us against a possible war, why to spend a few dollars to protect our past obligations ·will add, to the deficit should we argue about an economic step ·2338 CONGRESSIONAL RECORD-= HOUSE . March 26 · which will assure us of the income wi.th adequately cover each aspect and duly state that I .will continue to follow that which to pay for the war materials and protect the health of the people. course. However, I will not follow it to at the same time protect us against the the point of seeing the destruction of ' the policies and programs of this Gov economic collapse-that would destroy our CIVIL SERVICE REGISTERS abilitY. to defend ourselves? ernment designed to aid and benefit the Finally, I want to repeat, at the pres ·Mr. RHODES of Pennsylvania. Mr. average people of America. The de ent time the Congress of the United Speaker, I ask unanimous cons~nt to struction of a great program may be States has no assurance that we will address the House for 1 minute. brought by a policy of neglect, or a continue to have the present price and The SPEAKER. Is there objection to policy of boring from within, or by direct income level. In fact, there are many the request of the gentleman from · assault. If it be the purpose of this indications today which indicate that we Pennsylvania? administration to abolish RFC, I hope are headed for lower prices. , There was no objection. it will adopt the method of the direct Mr. RHODES of Pennsylvania. Mr. assault sci that the American people may Should lower prices force' our income Speaker, yesterday it was announced by downward, all our glib promises of a bal be informed of the trend of thinking of Mr. Philip Young, new Chairman of the those who mutilate the body. anced budget will not be met. We will Civil Service Commission, that eligibility have less taxes, but the reduction will In this particular field, the cat is out lists for 1,700 postmaster jobs have been of the bag. The administration has come about through inability to pay discarded and that new examinations rather than a lower tax levy. made its objective clear. It is appar were scheduled. This announcement has ently willing to substitute high interest the effect of breaking two campaign rates and hard terms for the fairly SPECIAL ORDERS GRANTED promises with a single blow. liberal lending policy, throngh which Mr. Young's announcement to discard RFC accomplished its good over the Mr. HOSMER asked and was given civil-service registers comes only a few period of its 21 years. permission to address the House for 30 days after taking his oath of office. The To me it is unthinkable that .this ad minutes today, following the legislative result of his decision will cost the tax ministration would kill, or even cripple, program and any special orders hereto payers $200,000 or more for the new ex an agency that has done so much to fore entered. aminations. In some cases, it required a strengthen the fabric of our free-enter Mr. VINSON asked and was given year for the civil-service examiners to prise systein. permission to address· the House for 10 complete their work. To throw out 1,700 Not only has the RFC not cost the minutes today, following the legislative registers is not the economy that the American taxpayer any money, but· in program and any special orders hereto American people have been promised. It stead, according to its chairman, Mr. fore entered. is spoils system politics and a step toward McDonald, it has earned for him nearly breaking down civil-service system. · $1 billion. Mr. Young and the administration I do not believe the American public AMENDMENT TO FEDERAL FOOD, cannot escape blame for this unwise-de DRUG, AND COSMETIC ACT will welcome this proposed action as cision. Again, all the rosy promises are being good business on the part of the Mr. MILLER of Nebraska. Mr. Speak disappearing into the air. This time "business" administration which was er, I ask unanimous consent to address it is on civil service and again on econ promised them. the House for 1 minute and to revise and omy. extend my remarks. On this matter I have no interest The SPEAKER. Is there objection to whatever in party politics. Our Repub SPECIAL ORDERS GRANTED the request of the gentleman from lican friends will soon learn that this Mr. HAYS of Ohio asked and was given Nebraska? type of political patronage does not make permission to address the House· for · 20 There was no objection. political friends. My concern is for minutes on Monday next, following any Mr. MILLER of Nebraska. Mr. Speak good government and to protect and special orders heretofore entered. er, I have introduced a bill today which I strengthen the merit system and to stop Mr. YATES asked and was given per am quite certain will meet with the ap this kind of wasteful spending. mission to address the House for 15 min proval of every person affected. The bill I believe the civil-service system needs utes on Monday next, following any spe would amend the Federal Food, Drug, improvement. The administration is en cial orders heretofore entered. and Cosmetic Act in respect to pesticides. titled to have and to control all policy Mr. YATES. Mr. Speaker, I ask unan At present, the law is quite hazy and making jobs. But where is the line to be imous consent that the special order cumbersome. It does not protect the drawn? Is the civil-service system to be granted to the gentleman from Texas health of the people as it was designed to wrecked under the guise of improving it? [Mr. PATMAN] for today be transferred do, but places a millstone ~round the I am sure the people do not want a re to Monday next. neck of industry whether it be farming, turn to spoils system politics. I .am The SPEAKER pro tempore il~, H. R. 4199, ~o such investment. trade. and commerce. 2340 CONGRESSIONAL RECORD·- HOUSE March 26
MEMBEilSHIP OF THE COMMISSION members with such powers and duties as and the· Gray report and so on. I am SEc. 3. (a) Number .and ap_pointment: The may be delegated thereto. sure the gentleman is thoroughly ac (b) Hearings and sessions: The ~ommls Commission shall be composed of ~4 members quainted with all that. I think what as follows; 'Sion, or any committee thereof, may, for the the gentleman needs to deal with, if he ( 1) Ten ·a_pp-ointed by tbe President of, tbe · purpose of carrying out the provisions of this act, hold such hearings and s:.t and act at . will permit my saying so, is that witn United States, four from tbe executive the normal feeling here as the gentle branch of the Government, and six froin .such times and places, lDld take such testi private "life; · mony, as the COmmission or such commit man and I so well know, where our Mem (2) Two Members -of the Senate appointed tee may deem advisable. Any member of bers want to look with a rather critical by the Vice President; and , the Commission may administer oaths or eye on all new commissions, in view of (3) Two Members of the House of Rep.re affirmations to witnesses appearing before this record of commissions that ha-ve al sentatives appointed by tne Spea"ker. the Commission or before any committee ready functioned and are in contempla (b) Political afHltatiDn: Of eacn class of thereof. tion now, I think the gentlemen needs members, not more -than one-half snall l;>e (c) Obtaining official data: The Commis sion, or any committee the:teof, is author to make very clear where this particular from each of th-e "two "'lllajor polit1ell.l -parties. idea of the gentlemen fits, and why it is (c) Vacancies: Any 'Vacancy in the Com ized to secure directly from any executive mission shall not affect jts _powers, but shall department, bureau, agency, board, commis- needed now in view of all of these other be filled in the same ·manner in which the . sion, office, independent establisnment, or activitles. · I hope the gentleman under, original appointment was made. instrumentality information, suggestions, stanas that I say tlrat only to lead his l estimates, and statistics for the purpose of ORGANIZATION OF .XHE COMMISSION thoughts in a direction which may get this act; and each such department, 'bu him results, and I do not at a11 intend SEc. -4. The Commission .shall elect a .reau, .agency, board, commission, office, es chairman and a vic.e chairman from .among tablishment, or instrumentality is author my remarks to be critical. I compliment its members. ized and directed to furnish such informa the gentleman on his understanding of QUORUM tion, suggestions, estimates, and statistic.s the fact that this is perhaps the keystone SEC. '5. Eight members of·.the Commi1!ision directly to the Commission, or any commit of all American foreign policy. shall constitute a quorum. tee thereof, upon request made by the Chair Mr. MEADER. Mr. Speaker, I thank man or Vice Chairman of the Commission or COMPENSA"TION OF MEMBERS OF THE the gentleman for his remarks, and the COMMISSION of tne commtttee concerned. question he raises is one that I did in (d) Subpena power: The Commission, or SEC. 6. (a) Members of Congress; .Members any committee thereof, "Shall have power to tend to dea1 with later on in my remarks. of Congress who are members of the Com require by subpena or otherwise the attend However, s1nce he has raised the ques mission shall serve without compensation in ance of witnfsses and the production of tion of other activities in this general addition to that received for their services books, papersJ and documents; to administer .field, I think it is appropriate now to .as .Members of Congress; but they sball be oaths; to take "testimony; to have J>rinting refer briefly to these other activities. reimbursed for travel, subsistence, and other and binding done; and to make such ex I .am aware of the work that the gen necessary expenses incurred by them in the penditures as it deems act.visable within the performance of the duties vested in the tleman has referred to, the Gray report, amount appropriated th-erefor. Subpenas the so-called Rockefeller report on Part Commission. · shall be issued under the signature of tbe (b) Members from tbe executlve branch: Chairman or Vice Chairman of the Com ners in 'Progress, and the Bell report, al The members of the Commission. who are mission or committee .and shall be served though the latter report I have not in the executive branch of thil Government by any person designated by them. The examined carefully. I might mention shall each receive the compensation w.hich provisions of sections 102 to 104, inclusive, there are some additional activities in he woufd receive if he were not a member of the Revised Statutes (U. S. C., title 2, this field, notably a report prepared for of the Commission, plus such additional sees. 192-194), shall apply in tne case of any the President's committee for financing compensation, if any, as is necessary tq make failure of any witness to comply -with any his aggregate salary $12,500; and they shall foreign trade in April of 1951 entitled subpena or "to testify wnen summone.d un "Obstacles To Direct Fareign Invest• be reimburBed for travel, subsistence, snd der authority of this aection. ·other necessary ·expenses incurred by them ment:~ That was a committee headed in the performance of the duties ..ested in EXPmATION OF COMMISSION by Winthrop Aldrich, as I recall it. · the Commission. · SEC. 11. The Commission shall cease to I have before me the report of tnat (c·) Members .from private life: ~a-mem exist on June 30, 1955. committee, tne National Industrial Con bers from private .life shall each receive $50 ference "Board ·report. In aduition to per diexn when engaged in the performance Mr. J AVITS. Mr. Speaker, will the of duties 'Vested in the Commissiun, -plus gentleman yield? · that, there are -related a-ctivities of com reimbursement for travel, subsb;tence, and Mr. MEADER. I am -glad to yield to mittees of the 'Congress. I do not pro other necessary expenses incurred by them the distinguished member of the Com pose to give a bibliography of all of those in the performance of .such duties. mittee on Foreign Affairs. activities. A little later I want to point 'STAFF OF THE COMMISSION Mr. JAVITS. The gentleman's bill is out that there is presently a study under SEC. 7~ The Commisslon liliall n11.ve tbe of great interest, of course, to me as~ am way, on which a report is required by the power to .a..PpOln.t .a-nd fix tne ~ompensation sure to every other member of the com Mutual Security Act ·or 1952. 'But before of such personnel as it de·erns advisable, mittee, and touehes on a problem of the I go into that I would like tq read, so that without regard to the provisions of fhe civil greatest moment to our country and is it Will be a part of the CONGRESSIONAL servi'ce laws and the Classification Act of tied up with the whole slogan as the RECORD, tne duties oi this· Commission 1949, as amended. · gentleman just said of, "Trade not ·aid." known as ·the Commission on Overseas CERTAIN LAWS INAPPLICABLE TO COMMISSION The question I would like 'to ask the Investment ana ~ade. AND "'TS ST4FF gentleman is this. We have had anum Mr. Speaker, I would like to rev1ew SEc• .B. .The .service of any .Person as a mem ber of commissio.ns in this field. They briefly the interest I have had in this ber of the Commission. the .service of .any particular subject, whi-ch :extends over other person with the -Gommissi..on, and the have not been congressional commissions employment of any person .by the Commis or commissions of this character, but a number of years. Then I want to sion, snan not be considered -as service or .they have been commissions. I would review briefly the progress tbat has been employ.men.t-bringin_g such_per.son within the like to mention to .the gentleman the made in this fie1d in recent legislation. provlsions of sections 281., :283, or :2M oi tlt1e names of some of them. We have had Then I propose to point out, if J: may, ~8 oi the United States Code, or of any the International Development Advisory how the congressional Commission, es other :F.ederal Jaw .llnposing .restrictions, .re Board which, if memory serves me, in tablished by this bill, would be more like quirementsJ or penalties .ln re~tion 'to the either 1950 or 1951 developed quite a re ly to solve these difficulties which have emp1oyment of persons, the performance beset us over a period of years than can _of serv.lces, .or tb.e payment .or .receipt of com port on this very subject. We have also pensat1on.in connection with an..Y ..claim, pro had the Mutual Security Advisory Board,· ever be dnne either by a committee of prl ceeding, or matter lnv.Dlving the United which only in Februar_y of tnis year vate citizens without any governmental States. under the distinguished chairmanship of standing wnatever, or by any agency or .EXP..ENSES OF THE COMMI5piON Daniel Bell, fOI'Dler' Under Secretary· of group of aEencies within the ·executive SEc. :9. There 1s hereby a.:nthndzed -to be the Treasury, issued the famous Bell re branch of the Government. R1Jpropriated. uut Of any mum~.Y in -.the Tre:M port~hich is on the table now. I under Mr. Speaker, I first became interested ury no.t ntherw:tae appropriated, so :much as stand that the P.resident has now a-p in this means of improving the climate ..may be ne:eessary to ca.rr,y uut the provisions pointed the former Ambassador to Great for foreign investments when I listened of this :act. Britain, Lewis Douglas, to set up a com• to the President's inaugural message ~ "OF "!'HE '"CO~SSIUN mission to go into the very same subject. over 4 years ago, and listened particu SEc. 10. (a) Committees: The Commis Now here are a.t least three. Those were larly to that passage called the point sion may ~reate such committees of its preceded by tne famous Gray committee 4 program. The technical assistance of 1953 CONGRESSIONAL RECORD -HOUSE 2341 Government experts in the field of pub- I was unable to obtain hearings di proved and its actions are more likely to lic sanitation, in agricultural-extension rectly upon that bill by the Foreign be responsible and sound. work, which has become the point 4 pro- Affairs Committee to which the bill was Mr. SMITH of Wisconsin. Of course, gram, is only a part of what the Ian- referred. However, I appeared before we have the age-old question, Which guage of that statement envisaged. The that committee during the hearings on came first, the chicken or the egg? We purpose was to make available to the the Mutual Security Act of 1951, urging have had the argument likewise in ref underdeveloped areas of the world the my bill as an amendment. In my· testi erence to the question the gentleman is advantages of the American free-enter- mony I incorporated a great number of discussing: Are we going to have sound prise system, the know-how, the indus- communications I had received from investment opportunities where there is trial techniques and the methods persons regarded as informed in the a sound political climate first or are we whereby the American people have been fields of foreign policy and foreign eco going to establish the sound political able to develop the natural resources of nomic affairs. That testimony will be climate, then make the investments? It this continent so as to produce a stand- found in the hearings on the Mutual is one of those things that you go round ard of living higher than has ever been Security bill of 1951 before the Com and round on. known in the world's history before, in mittee on Foreign Affairs on July 20, 1951, The gentleman, I know, will be inter any part of the world. at pages 777 to 831. ested in a conversation I had with a Mr. Speaker, the program of making In support of this proposal there also member of one of the embassies who said available to underdeveloped areas the appeared a representative of the Detroit to me: "Mr. SMITH, we just cannot de advantages of the American production Board of Commerce urging · favorable velop a private-enterprise economy in system can only be carried out in part by action on my bill. our country. We do not .have the providing technical experts through When the mutual security bill was re money." Government funds such as has been the ported out of the Foreign Affairs Com In other words, they would like to limited program through the point 4 or mittee it contained some language in come to this country and get all the the technical assistance program. I say serted by the gentleman from New York money they possibly can for the develop to you that the industrial methods of the [Mr. JAVITS] urging that the act be ad ment of private enterprise and business, United States will"normally be exported ministered in such a way as to break but there is no way for them to start. to these underdeveloped areas if re- down barriers and impediments to in They are one of these countries which is straints upon the investment of capital vestment. not able to say to the-investor: We can abroad are removed and the enterpris- During the fioor debate on the mutual guarantee a sound political climate and ing courageous .spirit of the American security bill on,August 16, 1951, I offered you need have no worry about getting business community is permitted to oper- the provisions of H. R. 3798 as an your money back plus interest thereon. ate to develop the national resources of amendment to H. R. 5113. My remarks In other words, there will be a safe in these underdeveloped areas. on that amendment will be found in vestment for you. With that capital, of necessity, must go the CoNGRESSIONAL RECORD, volume 97, He cannot do that because there is in the know-how. I think it is wholly un- part 8, pages 10179-10180 for that day. stability within the country, yet they ap realistic to expect to export the know- I may say that no one spoke against my preciate the need for money to develop how without the capital. There is no amendment, yet, on a division in the a sound economy. motive for American businessmen to ·Committee of the Whole, the amend Mr. MEADER. I think the gentleman make their trade practices and indus- ment was defeated by a vote of 63 to 126. has put his finger on one of the serious trial secrets available to foreign com- I may say that only one Democrat, as I impediments to investments overseas. ·petitors if there is no return for them. recall it, stood up in favor of the amend That is precisely the subject matter of To send experts in industrial methods to ment. the work of the Commission that I pro foreign countries to develop their com- Mr. SMITH of Wisconsin. Mr. pose. I suggest that we get together the petitors' industries just does not make Speaker, will the gentleman yield? best Ininds in the country, to study these sense, but when the American business Mr. MEADER. I yield to the gentle problems and to see whether or not some enterprise invests its funds in foreign man from Wisconsin, a distinguished . intelligent progress can be made in the • activities the know-how ~utomatically and valuable member of the Committee field the gentleman is speaking of as well goes with the capital. on Foreign Affairs. as in other fields where there are un Mr. Speaker, as a result of this inter- Mr. SMITH of Wisconsin. I want to usual hazards and risks in engaging est in the so-called point 4 program I compliment the· gentleman for his per either in investment or trade. prepared a bill early in 1949, much like sistence in attempting to see that some Mr. SMITH of Wisconsin. Mr. the bil1 H. R. 4199, just introduced. I kind of legislation such as he is now dis Speaker, if the gentleman will yield fur discussed this proposal with a former cussing is finally proposed to the House. ther, I would just like to say this: I hope boss of mine, if you please, the Honor- I think he has in mind something that that it is going to be possible for us to able James Mead, now a member of the is quite important. consider that kind of legislation because Federal Trade Commission, formerly a The question that arises in my mind, it affords a great opportunity for · this Member of this body and a Senator from however, is ·this: Can we expect that country from the standpoint of secur the State of New York. Senator Mead those who are interested in foreign in ing peace through sound business propo was chairman of the Senate War Investi- vestments will invest unless there is a sitions without investment in the mili gating Committee at the time I was its sound, stable political climate in respect tary program. I think the gentleman chief counsel. I asked Senator Mead to nations where capital is needed? We has something that we should all think to present this idea to the White House. cannot guarantee the political climate about. My letter to Senator Mead is dated Feb- in those countries. That to me is the Mr. MEADER. I thank the gentle ruary 28, 1949. nub of the situation. man. March 1, 1949, Senator Mead took the : Mr. MEADER. I thank the gentle Mr. LANTAFF. Mr. Speaker, will the bill and a suggested agenda of studies for man from Wisconsin. l recall that · gentleman yield? the commission to the White House and when I spoke before on this. subject he Mr. MEADER. I am glad to yield to presented it to President Truman. Pres- was very helpful and cooperative. I my colleague on the Committee on Gov ident Truman thanked Senator Mead · would like to answer his question which, ernment Operations. for his interest, but nothing happened of course, is a very difficult one, by say Mr. LANTAFF. I want to compliment until about 3 months later. Senator ing that fundamentally ·the control of the gentleman from Michigan on the Mead got a letter dated May 24, 1949, the affairs of any c.ountry is in the hands legislation he has introduced. I think from Mr. Steelman advising him that of its citizens, not in the United States he did answer the need for such a Com they were glad of Senator Mead's inter- Government. Where you have unstable mission as this when the point was raised est but that they felt the matter was governments obviously you do not have as to political instability. Especially is being taken care of. a favorable climate for the investment this Commission needed in view of the' April 23, 1951, I introduced H. R. 3798 of funds of private citizens. But let me statement by President Eisenhower that in the 82d Congress, 1st session, a bill of say to the gentleman, and ask him if he he wanted to develop a program of trade · import very similar to H. R. 4199 of does not agree with me, where economic and not aid. It seems to me imperative this Congress. At that time I discussed conditions are improved and stabilized -that such a Commission as this not only the subject at some length under a spe- under a free-enterprise economy, the goes into the political climate that our cialprder of the House. political stability of that country is im- American industry will have to operate -
2342 CONGRESSIONAL RECORD =HOUSE March 26 under overseas but also in the way that When the Mutual Security Act of 1952 (c) T.he Department of Commerce shall, came up I again appeared before the in cooperation with such groups and agen the State Department -will be helpful. I cies (including the International Bank for think the gentleman will recall .of busi House Committee on Foreign Affairs on Reconstruction and Development), conduct a nessmen -overseas complaining about the April 28, 1952. My statement appears thorough study of the legal and other im fact that they did not receive the J)ro-per on pages 869 to 882 of the hearings. pediments, foreign and local, -to priv.ate in consideration from some of our United Let me say that some progress was vestm-ent abroad, and the methods and states officials, and I think it is because made when the Mutual Security Act of means whereby those impediments can be we did not have an overall policy to help 1952 was passed. Not only was the prin removed or decreased and shall make Iecom ciple of encouraging private investment mendations thereon to the Director for Mu businessmen throughout the world. I tual Security. also believe tnat such a Commission overseas reaffirmed, but specific steps might well be the means whereby private were ordered to be taken by various In other words, the Department of industry could eventually take over the agencies in the executive branch of the Commerce has been ordered to make a point 4 program and accomplish through Government to accomplish that objec- study of a character similar to that private enterprise the same purposes we tive. provided by H. R. 4199, are accomplishing with the point 4 pro The Secreta'Ty of State, the Mutual I have made a personal investigation gram today. Certainly private enter Security Director, the Technical Cooper- of what the Department of Commerce prise bas done that in South America, ation Administration, and the Depart- is doing. They have a group of about and I think, with the encouragement ment of Commerce were ordered to carry 12 people under the leadership of Carl that such a Commission as the gentle out certain specific functions calculated ton Wood in the Office cr.r International man proposes can give them, through to enhance the opportunities for private Trade in the Department of Commerce working with and helping out with the capital investments in foreign areas. who have been carrying out the.responsi- uther governments, that private enter Mr. Speaker, I ask unanimous consent bilities directed by the section which I prise can eventually take over in that that a portion of section 514 of the Mu- have just read. In essence, they are field and save the ta-xpayers millions of tual Security Act of 1952 be incorporated carrying on two activities. The first is dollars. in my remarks at this point. to assemble from the geographical area Mr. MEADER. I thank the gentle The SPEAKER pro tempore. Is there desks all information on the laws, the man for that contribution, and I would objection to the request of the gentleman _ customs, and the conditions in the vari- also like to thank him for the support from Michigan? ous countries overseas affecting the de- he gave me in this effort when I sought There was no objection. sirability of investing capital in those to amend the Mutual Security Act of The matter referred to is as follows: countries. I think the collection and 1952. The gentleman has been very (k) Amend section 516 by inserting "(a)" publication of that information .will -be helpful in the work of the Committee after "SEc. 516." and by adding at the end useful even if nothing further is done. on Government Operations. The gen of such section the following new sub sections: Second, they conducted a survey of tleman from Florida and I both had an about. 300 American business :firms seek opportunity to see and hear some of these "(b) To accomplish the purpose of clause ( 1) of subsection (a) of this section, under ing to elicit from those firms -information problems of American businessmen over the coordination of the Director for Mutual concerning their own experience in the seas at firsthand in connection with an ..Security, the Mutual Security Agency, coop investment of capital overseas and to overseas investigation of the Bonner erating with private business groups and gov learn from them why further investment committee in 1951. ernmental agencies to the fullest extent pos was not made. What has occurred on this idea since sible, shall encourage a greater -participation That survey was conducted not by it was originally proposed? In the Mu by private capital in the guaranty program and shall develop broad criteria to facilitate questionnaire but by personal interviews. tual _security Act of 1951 the _principle such participation, including programs con Representatives from the :field offices of was endorsed. Section 516 of that act, sistent with the purposes ·of the act for the Department of Commerce, called up approved by the President on October 10, international development. on these firms and then reported the 1951, is entitled "Encouragement of Free " (c) The Department of Commerce shall, results of the discussions. Those reports Enterprise." in cooperation with such groups and agencies are now being collected and analyzed, Mr. Speaker, I ask unanimous consent (including the International Bank for Re .and will be very interesting, I am sure. ·to extend as part of my remarks at this construction and Development) , conduct a No one can tell today when that report point in the RECO.RD the section just thorough study of the legal and other im pediments, foreign and lo~al, to private in will be available. My best guess from referred to. vestment abroad, and the methods and the information I have received is that The SPEAKER pro tempore. Is there means whereby those impediments can be it will not be available until the month objection to tne request o:i.' the gentle removed or deceased and shall make recom of June. man from Michigan? mendations thereon to the Director for Mu This activity is all very useful, but 1 • There was no objection. tual Security. " (d) The Department of State, in cooper think I can demonstrate to the Members . Mr. MEADER. Section 516 reads .as {)f the House that the hands of any exec follows: ation with other agencies of t~e Government concerned with private investment abroad, utive agency are tied. I would like to SEc. 516. It is hereby declared to be the .and taking into account the study and rec refer to the question raised by the gen policy of the Congress that this act shall .be ommendations described in subsection (c) tleman from Florida as one illustration. administered in such a way as ( 1) t'O elim of this section, shall accelerate a program of inate the barriers to, and provide the incen AmeTican businessmen have complained negotiating treaties of commerce and trade, that the personnel of tbe Foreign Service tives for, a .steadily increased participation or other temporary arrangements where of free private enterprise in developing the more suitable or expeditious, which shall in of the Department of State have not resources of foreign countries consistent clude provisions to encourage and facilitate been helpful am~ cooperative in meeting with the policies of this act, (2) to the extent the flow of private investment 'to countries problems they face in conducting busi that it is feasible and does not interfere with participating in programs under this act. ness overseas. .If .the Department of the achievement of the purposes set forth in this act, to discourage the cartel and monop " (e) The Technical Cooperation Adminis Commerce .finds that the personnel of olistic business practices prevailing in cer tration, taking into account the study and the Foreign.Service have been indifferent tain countries receiving aid under this act recommendations described in subsection or hostile to American business activi which result in restricting production .and (c) of this section, shall encourage and fa-. ties abroad. would the Department of increasing prices, and to encoura_ge where cilitate a greater participation by private industrial groups or agencies in private con Commerce dare so to accuse and criticize suitable competition and productivity, and its sister department, the Department of (3) to encourage where suitable the devel tracts awarded by the Administration, and opment and strengthening of the free labor shall, in cooperation with the Department of 'State? Would it dare, despite the order union movements as the collective bargain Commerce and the Mutual Security Agency, in secticn (c) of the Mutual Security ing agencies of labor within such countries. find and draw the attention of private enter prise to opportunities for investment and de Act of 1952 which I have just read, to Now, that pronouncement, in my mind velopment in underdeveloped areas. tell the Department of State what it was nothing more than a broad decla "(1') The reports required by section 518 ought to do to encourage its personnel ration of purposes. It did not specify of this act shall include -detailed information to be more helpful to American business any steps to be taken or activities to be on the implementation of this section." interests abroad? 1 say to you there entered into to ac.complish the encour Mr. MEADER. Mr. Speaker, I want to will ·be a first rate interagency ruckus agement of private capital investment emphasize one of those provisions, name- - if the Department of Commerce is frank overseas. ).y, section (c). which reads as fo1lows: and forthright -about the attitude of the 1953· CONGRESSIONAL RECORD -HOUSE 2343 Department of State, toward American tion.at affairs were adopted by the dele .. that they adopted any such resolution business abroad. gates to the 34th annual convention in at all. The United States opposed it, Again, let us assume, as I think it is. December 1952. This statement is ex but the United States was the one nation safe to assume, that one of the obstacles tremely well expressed and takes a broad to oppose it in the United Nations. I ask to the investment of private funds over point of view on international affairs. It the gentleman, How can you ever provide seas is the inconvertibility of currencies is not limited to just agricultural mat a climate for foreign investments if such and the inability to get dollars back, ters, and, in my judgment, is very for monstrosities as the United Nations con either as earnings or capital. Now sup ward looking. tinue to enact resolutions doing anytbing pose the Department ·of Commerce is The opening paragraph of the state to establish a climate favorable to Amer compelled to come to the conclusion that ment of the Farm Bureau on Interna ican investments? this is a serious obstacle to investme~t tional Affairs is as follows: Mr. MEADER. Well, I would rather of private capital overseas, and suppose The challenge to America is to exert the not discuss the United Nations at length. it is further convinced that more prog necessary leadership for successfully direct I have only a few minutes left. I would ress in solving the problem could have ing its capabilities to the maintenance of rather the gentleman directed his atten been made by the responsible agencies freedom and peace. The United States must tion to the proposal that I am making, than has been made. Let us say that the demonstrate to the world that a dynamic, that we have an American bipartisan expanding, competitive capitalism is the true Commission to study this problem. I International Bank and Monetary Fund, way to the more abundant life, that thought an international agency, the Department ful people everywhere are seeking. For cap agree that a great many things have of Treasury, the Federal Reserve Board, italism to be dynamic and expanding, cap been done, not only by international or the Department of State, all have some ital must be allowed to flow freely. This re ganizations but by foreign governments responsibility with respect to the stabili.. quires world tr~:~act of Congress would have an inde .. Mr. GROSS. Unfortunately, I have A new survey is expected to be published in pendent status, free from responsibility not heard all the gentleman's remarks, a few months. The new figures may be quite for the mistaken policies or the inactivi.. but I wonder if he has discussed the res_; different from the ones given below. How ties of the past. It should have no hesi elution recently adopted by the United ever, this is the best estimate at present. tancy in criticizing forthrightly where Nations with reference to the nationali "United States direct investments in foreign criticism is due. It should have no hesi zation of their industries. countries (direct meaning United States tation to make recommendations to the Mr. MEADER. No. I did not discuss private investment in controlled enter President and to the Congress in policy it. . prises) making fields. In fact, the Commission Mr. GROSS. The gentleman I am "End of 1945 (end of war) is ordered to make such recommenda sure knows that very recently some 47 total investments _____ $8,369,000,000 tions. countries of the United Nations adopted End of 1950 total invest- Mr. Speaker, in support of the general a resolution providing that they can at ments ------13, 550, 000, 000 idea of expanding investment overseas, any time nationalize their industries. It Increase______5,181,000,000 I call attention ~ the recent statement was not necessary that they should adopt End of 195L ______114, 850, 000, 000 of the American Farm Bureau Federa ·Such resolution, because of course they Increase over 1950______1,300,000,000,. tion. Politics with respect to interna- could do so. ne significant thing was 1 The 1951 figures are rough estimates. 2344 CONGRESSIONAL RECORD -HOUSE March 26 "Breakdown of increase (1945-50) between cellent- In 'all respects . . The proposal for a portunity? How better export that sys western Hemisphere and rest of world. Commission on Aid to Underdeveloped For tem than through the encouragement "WESTERN HEMISPHERE eign Areas is as good today as it was when and facilitation of the overseas invest you put it forward. I would suggest only "Canadian investments: ment of private capital and the expan 1945-49 ______$900,000,000 that such a Commission, if formed, concen trate on the private-capital phase of the sion of trade and commerce? · 1950------500,000,000 point 4 program. This I see as the big un The SPEAKER pro tempore James Monroe the United States into overseas private all success on your affirmative approach to was inaugurated in front of the building, investments, we will contribute toward the proble~ of the underdeveloped coun thus starting the custom of public in the bridging of the dollar gap and allevi tries. augurals. ate the pressure for Government Sincerely, AUGUST MAFFRY. Honoring this occasion, Mr. Speaker, financed foreign aid. was a favorite son of Ohio, the Honorable Mr. Speaker, I wish to draw the atten Mr. Speaker, as I judge the sentiment Harold H. Burton, Justice of the Su tion of the House to a report entitled .of the American people, there is a grow preme Court whose friendship I have "Program for Increasing Private Invest ing demand that the United States and long cherished. Sometime before he had ment in Foreign Countries," prepared friendly free nations take the initiative been asked by Chief Justice Vinson to for the Technical Cooperation Adminis in the cold ideological war with Commu make an investigation of the history of tration of the Department of State, the nist totalitarianism. this location. This history, so charm Department of Commerce, and the Mu The past administration's policy of ingly told by Justice Burton, has now tual Security Agency, dated December containment, their defensive attitude 18, 1952, by August Maffry, vice presi-: been published in a brief statement -waiting for Russia's next move, their which will delight history lovers. It is dent of the Irving Trust Co., of New statements during the campaign that our York City. I read this report with con entitled "The Story of the Place" and foreign policy was decided not in the traces the history of the site through its siderable interest. Under permission United States but in Moscow, were re previously granted, ,I incorporate the nine contrasting periods. He writes: jected by the American people at the Places, like people, have personalities. conclusion of this report at this point in polls last November. my remarks: They also have careers. The site of the The American people clearly want and Supreme Court Building in Washington is as The· problem of increasing American pri are entitled to something better than rich in historical Interests as it is now radi· vate · investment abroad presents massive watchful waiting and a pouring out of ant in architectural symmetry. difficulties. It will yield to action by the United States Government in the short run their substance through tax funds in an Mr. Speaker, I ask unanimous consent only by the application of radical induce effort merely to hold the line against to include Justice Burton's colorful story ments with particular reference to noncon Communist imperialism. herewith so that as many people as pos trolling investments in foreign securities by Mr. Speaker, it is time that we assume sible may have the privilege of knowing individuals and institutions. In the absence the offensive, that we announce worthy about a site on the Hill which is one of of such radical measures, the problem be goals and take positive action toward our notable landmarks. comes one 'of bits and pieces to be attacked achieving them. This administration on many fronts by many agencies by many and the American people have endorsed And I ask that it may be printed in techniques. Results will be slow in coming, this policy in general terms. connection with my speech today not but the effort must be continued and inten- . withstanding the fact that it exceeds sified. There is no plausible way other than The effective offensive against totali the limit by a few hundred words. the stimulation of private investment to tarianism ·is ·the practical demonstra The ·sPE.AKER. Notwithstanding the assist friendly foreign countries to achieve tion-not just oratory-that men free to balanced economic development. excess, without objection, the extension ·work out their own livelihoods can and may be made. I wrote Mr. Maffry and sent to him do out-produce slave citizens. The free competitive economy, the doctrine of There was no objection. my statement of April 23, 1951, urging Capitol Hill as it was in seat of the Government of the United Avenue NW. The 13th Congress convened, ~ith States." on September 19, 1814, in special session, at 1550 and as it had been for centuries before In 1790, such a district, 10 miles square, Blodgett's "Great Hotel" at 7th and 8th that. No human being other than an occa centered around the Hill, was recommended Streets betwe~n E and F Streets NW. Sep sional Indian had seen the Hill, much less 'by President Washington and his adviser, tember 21 the House of Representatives de visited its crest at sundown and from there Maj. Charles Pierre L'En!ant, as the seat of feated, 54 to 83, a proposal to remove the watched the sun set across the still waters that new government. Promptly Maryland, seat of Government from the District. and the blue ridge to the west. The hilltop Virginia, and the Congress concurred. The Somewhat later the Senate took similar ac was covered with oak trees. The marshy hand of history wrote fast. In 1791 a cor- tion, the immediate need being for a tem land below it was filled with sycamores, silver nerstone of the District was laid in what is porary Capitol Building. Fate led the way poplars, and alders. From the north, a now Alexandria, Va. The diagonal axis of to the vacant southeast corner of 1st and A nameless brook wound its way through the the square extending due north located Streets NE., where there bloomed a flower woods and westerly to the river. To the about one-third of the District west of tl;le .garden. To the east of it was Walker's (or south another brook bubbled from a spring. Potomac in Virginia and two-thirds of it east Tunnicliffes' Hotel. Anxious to retain the The tourists of that day were the deer, the of the Potomac in Maryland. The President seat of Government in Washington, a group bears, the raccoons, and the wild turkeys. named three Commissioners for its govern- of citizens promptly raised, by private sub The permanent residents were the gray ment. They were David Stuart, of Virginia, scription, $25,000. This proved to be enough squirrels-predecessors of those that today Daniel Carroll, of Maryland, and Thomas to buy this corner and to build there a tern enjoy their prescriptive rights to the hollow Johnson, also of Maryland. Carroll had · porary CapitoLs tree trunks on the Capitol Plaza. The Hill been a Member of the Constitutional Con- July 4, 1815, its cornerstone was laid. The of that day was known only to the animals, vention of 1787. He was not, however, the structure rose to three stories. The Senate to the Indians, and to God. It was a quiet Daniel Carroll, of Duddington, who owned Chamber was on ·the ground floor. The Hall place that lent itself to inspiration. Jenkins Hill. Thomas Johnson had been a of the House of Representatives was on the By 1650 a trail had been blazed from the Member of the Continental Congress and the floor above. Congress approved the building · settlements in the north to the Indian vil first Governor of Maryland. Later he was and occupied it, paying for its use $1,650 a lage near the falls of the Potomac. Capt. to sit as an Associate Justice on the Supreme year which represented 6 percent on the John Smith and others, paddling up from Court of the United States. investment, plus $150 for insurance. Con- the south, had reached those falls by canoe. In 1791 they named this District of Destiny gress paid $5,000 more for furnishings, in Lord Baltimore had claimed the area under the Territory of Columbia and that part of eluding the later famous red leather chairs a proprietary grant from Charles I of Eng the District which lay west of the Potomac for the Senators. December 4, 1815, the land. It was all in a province named Mary soon was ceded back to Virginia. The re- 14th congress met briefly at Blodgett's Ho land, in honor of Queen Henrietta Maria. maining two-thirds is the District of Colum- tel but, by December 13, both Houses of . In another hundred years commerce had bia as we know it today. The Commissioners Congress were in the new brick Capitol. begun to flow from the trading center at required a small area within the District to Vice President Elbridge Gerry, of Massachu Bladensburg to Georgetown and thence to be laid out in streets and squares. They setts, having passed away, the Presiding om Alexandria. Title to the land was vested in nam.ed that area the city of Washington. · Its cer of the Senate was its President pro temp private ownership. Some of the properties streets, running due east and west, were to ore, Senator John Gaillard, of south Care were known as manors. They produced to be lettered alphabetically, in two series, to lina. The Speaker of the House was Henry bacco and corn. Before 1790 the manor the north and south from the Capitol Clay of Kentucky. The 15th Congress, which included The Hill had been inherited Grounds. Similarly, those running due throughout its life, also met in the brick by Daniel Carroll, of Duddington. It ex north and south were to be numbered con- Capitol, adjourning sine die March 3, 1819. tended approximately from what today is secutively, in two series, to the east and · The Presiding Officer of the Senate for that L Street on the north of the Capitol to N west from the same point. Major L'Enfant session was Vice President Daniel D. Tamp Street on the south, between Third Street located the site for the Nation's Capitol on kins, of New York. The Speaker of the on the west, and Third Street on the east.1 Jenkins Hill. On the same map he located House again was Henry Clay, of Kentucky.' The brook that flowed from the north across First Street NE . . Likewise he identified, as [n December, 1819, the 16th Corigress con the foot of the hill had been named Goose Square No. 728, the area on .First Street ex- vened in the newly rebuilt and permanent Creek. Later it was to be renamed Tiber tending north from East Capitol Street ~o Capitol Building on the crest of the hill. Its Creek and flow into the canal where now A Street. The adjoining triangular plot ex- reconstruction had been made possible by a we see Constitution Avenue. The brook that tending to the north, from A Street to Mary- $500,000 loan to the Government from the bubbled down to the Anacostia River had land Avenue, he numbered 727.2 This land Washington banks. The Supreme Court been named St. James Creek. Later it w~;ts was soon to be appraised at 6 cents per front preceded Congress in its return to the per destined to be the St. James Canal. The foot. manent Capitol. There the Court met in the Hill was in the very center of this Carroll By 1793, with elaborate Masonic- ceremony, . semicircular room on the ground floor under property. It was known as Jenkins Hill and the cornerstone of the northern section of the Senate Chamber. no one dreamed that it might become a the Capitol Building was laid on Capitol Hill. The most unique incident that had oc point of interest to the world. The Capitol resembled but little the struc- curred in the brick Capitol, while Congress n. 1790-1815 BROUGHT THE DISTRICT OF ture we know today. It had no dome. It occupied it, was connected with the inau COLUMBIA TO THE HILL ~ad neither of its present wings. It con- guration of President Monroe and Vice Presi Late in 1788 the new Constitution for the sisted of the two rectangular structure~ that dent Tompkins March 4 1817. The advance today constitute the elements immediately arrangements for the ~eremony conformed United States of America gave the world a north and south of the dome. Congress and · new guaranty of freedom. In it was article the Supreme Court met iR those buildings. I, section 8, pregnant with destiny for the There Jefferson and Madison were each twice a The largest subscriber was Daniel Car Hill. That clause gave Congress power to inaugurated as President. roll, of Duddington. The next largest was "exercise exclusive legislation • • ·• over Residences. sprang up in the neighborhood. Thomas Law. Like Carroll, he was a sub Then, during Madison's second term, came stantial property owner. He also was a. 1 Within that area, the Duddington man the War of 1812. On August 24, 1814, the brother of Lord Ellenborough, Lord Chief sion house was completed in about 1797. For British invaded Washington. Marching from Justice of the King's Bench of England. I more tha;n a century it was to stand between Bladensburg down what is now Maryland Bryan, a History of the National Capital First and Second Streets, SE., near E Street. Avenue, they met little opposition. It is (1914); Busey, Pictures of the City of Wash The neighborhood became known as Carroll said, however, that, as they reached 2d Street, ington in the Past ( 1898) , 129. Springs. Its location is roughly indicated at least one shot was fired at them. It killed " In the brick Capitol during these two now by that of Carroll Street, which extends the British general's horse and, in retalia Congresses were heard many leaders of their one block, from First to Second Street, SE., tion, the house from which the shot had day. Among these were Senator Rufus King, between Streets C and D. The house at the come was burned by the invaders. They of New York, later an unsuccessful candidate southeast corner of First and C Streets is also seriously damaged with fire both of for President of the United States; Repre still marked Duddington Place. A 1ater de the buildings that constituted the Capitol. sentative PhilipP. Barbour, of Virginia, later velopment was that of the Carroll Row UI. 1815-19 PRODUCED THE BRICK CAPITOL a Justice of the Supreme Court; John C. Cal Houses, on the site of the Congressional houn, of South Carolina, later Vice President Library. Their presence is not now com The British withdrew as suddenly as they of the United States; William Henry Harri memorated unless it be in the name of the had come. The Government of the United son, of Ohio, later President of the United Carroll Arms Hotel on First Street NE., sev States; John McLean, of Ohio, later a Jus eral blocks to the north. At the south end 1 A Street the:n opened dir~ctly into First tice of the Supreme Court; John Randolph, of the Carroll property and reaching to the Street. Its north side followed the line now of Virginia, later a Senator from that State; Anacostia River, there was developed a marked by the north wall of the north wing John Tyler, of Virginia, later President of sparsely settled area called Carrollsburg. Its of the Supreme Court Building. Its south the United States; and Daniel Webster, then name survives at Carrollsburg Place, which · side followed a line which now would pass representing New Hampshire but later to extends from ·M Street to N Street. SW., in through ~hat wing between its fourth and become Secretary of State and a. Senator. the block just west of South Capitol Street~ fifth windows from the north. from . Massachusetts. 2346· CONGRESSIONAL RECORD-· HOUSE · March 26 largely to previous custom, except that, in IV. 1819- 24 BROUGHT THE CIRCUIT COURT FOR Cyrus, David Dudley, and Henry.T He built stead of holding the ceremony in the small THE DISTRICT OF COLUMBIA. a~ addition to it and provided a large recep~ Senate Chamber, the plan was to move the When Congress returned to the permanent twn room on the first floor. His library red leather Senate chairs into the Hall of Capitol, it crowded out the circuit court for of 3,000 volumes was on the second floor. the House of Representatives. However, the the District of Columbia. That court, in There he followed a tireless schedule that Speaker of the House had not been con turn, was allotted space vacated iri the brick began at 7 o'clock each morning. At the age sulted and, when confronted 'with the plan, Capitol. There it met from 1819 to 1824. of 82 he died there on Sunday, April 9, 1899. Henry Clay objected, particularly to the Pressure from the local bar induced it to · This was nearly 2 years after he had sub presence of the Senate chairs in the House move downtown to Judiciary Square, where mitted his resignation from the Court to of Representatives. The arrangements were it occupied space in the new city hall at the take effect December 1, 1897, closing the quickly changed. Vice President Tompkins head of what is now John Marshall Piace. longest term of office ever served on that was inducted into office in the Senate Cham Court-34 years 8 months and 20 days.s V. FROM ABOUT 1824 TO 1861 THE SITE WAS ber and there made his response, but Presi VIII. FROM 1921 TO 1928 THE SITE WAS THE USED FOR A LODG! NGHOUSE, INCLUDING AN dent-elect Monroe was taken out of doors HEADQUARTERS OF THE NATIONAL WOMAN'S OCCUPANCY BY JOHN C. CALHOUN-1849-50 to a temporary portico which had been PARTY erected on First Street, directly in front of Some time after the old brick Capitol the building. There in the presence of the ceased to be used by the circuit court it was Mrs. Alva Belmont (Mrs. Oliver Hazard general public, the oath of office was admin converted into a lodginghouse. In 1841 we Perry Belmont), having acquired the Old istered to him by Chief Justice Marshall. find H. V. Hill advertising furnished rooms Brick Capitol property, presented it to the There the President delivered his inaugural for rent. Several· Members of Congress lived National Woman's Party as a permanent address and thus set the precedent for public there.8 It housed two clubs for young men. headquarters for their crusade for equal rights for women. Known as No. 21 First inaugurals.~ Its most prominent tenant was Senator John C. Calhoun, from South Carolina. Formerly Street NE., it was cherished by that organi. Secretary of War, Secretary of State, and zation not only as a headquarters but as an 1 An echo of this was heard in the Senate historical shrine. They embellished the · 20 years later, preceding the inauguration of twice Vice Presicfent, he was completing 40 years of public service. There Senator Cal grounds with a garden. When, in 1928 this President Van Buren. Clay was then a Sen site was selected for the Supreme Court ator and inquired why it was that the S:m houn lived, largely alone, from 1849 until his death at the age of 68, on Sunday, March 31, Building, the National Woman's Party op ate, rather than the House of Representa posed the selection because it meant the re tives, had the exclusive care of administer 1850. It was there that his political oppo nent, but personal friend, Senator Daniel moval of their historic building. The Senate · ing the Presidential oath. He recalled the adopted a resolution favoring the retention incident at the old brick Capitol, in 1817, Webster, of Massachusetts, came to cheer him during his final days. . · of their building and the abandonment of and furnished what is probably our most the proposal t·o build the Supreme Court authentic account of it. His colloquy of VI. FROM 1861 TO 1868 THE SITE WAS OCCUPIED Building there. However, Case No. 1911 in February 28, 1837, is reported t.,n vol. 13, pt. 1, BY THE CAPITOL PRIS ON the Supreme Court of the District of Co of Gales and Seaton's Register of Debates in After an interval, during part of which the lumbia resulted in the condemnation of the Congrer ;, 24th Cong., 2d sess., at 992, as fol building was used as a public school, the site property and an award to ~ the National Wom lows: at First and A Streets NE., passed into the an's Party of substantially $300,000 as just "The President pro tempore presented a sixtl;l period of its career. In the spring of compensation for the taking of it.u The party letter from the President-elect of the United 1861 the old brick Capitol was converted into thereupon moved to its present headquarterfi States, informing the Senate that he would a Federal military prison. It was known as in the historic mansion on the northwest be ready to take the usual oath of office on the Capitol Prison. A high wall was built corner of Constitution Avenue (old B Street) Saturday, March 4, at 12 o'clock, noon, at around the prison yard on the east. The and Second Street NE. · such place and in such man;ner as the Senate prison was used for state prisoners rather might designate. IX. SINCE 1928 THE SITE HAS BEEN SET ASIDE FOR . than for violators of military discipline. THE SUPREME COURT OF THE UNITED STATES "Mr. Grundy (of Tennessee) offered a res During its first 4 · months only 15 prisoners olution for the appointment of a commit were sent there. Soon, however, arrests be Completed in 1935, the Supreme Court tee of arrangements, to . make the requisite came so numerous that two houses in the Building, designed by Cass Gilbert, Sr., Cass preparations for administering the oath to adjoining block to the south were used to Gilbert, Jr., and John R. Rockart, stands the President-etect of the United States. house the overflow. At one time 1,004 pris where First and A Streets formerly met. The "Mr. Clay (of Kentucky) said he would oners are said .to have been crowded in. site is now known as No. 1 First Street NE. like to inquire whether precedents had been Among its notorious inmates were the Con The Supreme .Court Building provides a fit examined on this subject. He was aware federate spies Rose Greenhaw and Belle Boyd. ting climax. Magnificent in design, its cen that the Senate had always had a peculiar Capt. Henry Wirz, former commandant of tral element reflects the proportions of the agency in this business; but he was not Parthenon of Athens. Significant as a sym th~ Andersonville Confederate military aware why the Senate should act upon it pnson, was another. He was hanged in the b~l of the inde.pendence of tlle judiciary, it any more than the House, or why it was' not prison yard November 10, 1865, and at least honprs an historic spot. Inspirational in its a joint concern. He remembered that, on three others are said to have been executed message of "Equal justice under law," it the first election of Mr. Monroe, the com there. exp resses in fitting form the faith of our mittee of the Sen~te applied to him, as fathers. Speaker of the House, for the use of the VII. FROM ABOUT 1867 TO 1921 THE SITE AGAIN PRINCIPAL REFERENCES Chamber of the House; and he had told BEjoint resolution passed the Senate merged lands within the city's bound cifically lay claim to the navigable ·that year and was reported out by the aries are estimated at four times the streams and lakes, the harbors, and the House Judiciary Committee in 1938. present assessed valuation of the entire tidelands and ocean outside the 3-mile However, it died with the end of the city. So, both as a citizen of Long limit. It is important to remember these 75th Congress. Similar legislation was Beach and as its representative in Con additional points: First, the title to introduced in the 76th Congress in 1939. gress, I have a definite and close interest these was generally recognized as be By this time the people of the coastal in the controversy. longing to the states, as derived from States had become awakened to the fact However, as an American citizen, in the British sovereign; second, this title that more than oil under the submerged common with each and every other of was subject only to the regulation of lands was .involved. They recognized my fellow Americans, I have· an even navigation by the Federal Government, ·that such legislation would cloud the more particular and vital interest in it, a power also derived from the previous titles to all filled lands and their im namely: Is my National Government to sovereign. · provements along the coasts, the inland continue in the historic American tra Instances have occurred in the past lakes, and the navigable streams of any dition of functioning as a government where claim was made that these sub State. As a consequence, legislation was of delegated powers, reserving and pre merged lands were a part of the public introduced not to fix title in the Federal serving to the State and local govern domain and therefore belonged to the Government but to affirm titles of sub ments all those functions which ade Federal Government. However, no less merged coastal lands and inland. navi quately min be disqharged at these levels, than 52 decisions of the United States gable waterways to the States. closer and more responsive to the will Supreme Court, dating as far back as .such legislation gained momentum in of the people, or are we to propel our 1844, have involved State ownership of each following Congress. It had . the selves dowri the road of centralization fl.lled lands made from tidal swamps and backing of the attorneys general of 46 of powers in a few hands-hands very shallow water along the coast-each and States. This legislation finally passed remote from our citizeps. This road, every one of these decisions upheld both Houses of Congress in 1946, but traveled by other natio~. has led to ownership in these lands by the States. was vetoed by Mr. Truman. deprivation of individual liberty, slavery That is the way things stood in 1936. However, while this State-ownership to an ·all-powerful state, dictatorship, Oil had been discovered some years be legislation was pending before the Con desperation, and despair. fore under the submerged lands of gress-and.it had a good chance of pas-: For in truth and in fact, the submerged southern California. It was being pro sage-the Federal-control advocates suc lands controversy, stripped to its essence duced in ever-:increasing quantities un ceeded in getting the Department of and bared of extraneveto message on the Holland 1li1l and "erroneous•• the rule that · states The production of oil and gas nff the in 1952. owned the lands ben~th their inland California coast has continued under .a The drive for State-ownership legisla navigable waterways. In the California series of stipulations between the State tion has come from tne States tbem decision the Court itself said California and Federal Governments, the 'Proceeds selves and their political subdivisions had only a "qualified ownership" of such being impounded until the question of not from an.y oil lobby. Since 193"8, a lands. · is ownership settled. But the Texas and tot~l of 205 State and local omcials nave Further, the Supreme Court has 'held Louisiana decisions completely :stopped gone on record with the committees of that the Great L-akes aTe open seas, gov the further development of ·oil and gas Congress urging passage of the State erned by the same rules of Jaw as lands deposits of! those coasts at a time wben owner.ship legislation. lncluded in these Under tidewaters on the borders of the the oil was badly needed :for domestic endorsers of State ownership were 45 sea. and defense purposes. individual Governors .and 74 different · Federal officials may promise that they The 82d Congress saw a rasb of tide State attorneys general. Major support would never attempt to ·confiscate lands lands legislation-some-tor Federal own for State ownership has come f:rom a beneath inland navigable waterways, but ership, some for State ownership, and great many respected national organ the 'Supreme Court has ruled that such some to allow· interim oil and gas de izations, such as the National Association acts cannot bind the Federal Govern velopment pending final settlement of of Attorneys General, the American Bar ment. What credence can be given such the ownership. This House, in July 1951, Association, the American Associatiun promises. boldly made at the very time passed by 265 to 109, a bill to confirm &nd bf Port Authorities, and the American the Federal Gover.nment completely re establish State titles to submerged lands Municipal Association, which represents ·versed its position on State ownershi,p within the State's historic boundaries 10,150 municipalities throughout our to take away the .coastal submerged and to confirm Federal ownership of tbe land. . lands of the States2 Continental Shelf with Federal leasing Now take a look a-t another 1"alse Next, .I want to examine for you the of its oil deposits. charge-that the word "tidelands" ~s argument that tbe .Federal Government The . Senate, in 1952, passed wlth a been used by State-.ownership advocates must take over tbis on Jor national de much smaller majority, a bill establish to deceive the people. The truth is tbat fense. Let us remember that this Gov ing the State's tit1e to the submerged State and local representatives have ernment of ours is .a 'government of the lands within their boundaries, but not never cl'aim:ed that tidelands in the strict :people, by the people~ and for the. people; touching on the ownership of the Conti sense-that is, the _part of the seashore and that .not onlY is the .sanctity of the nental Shelf. The House acee_pted this washed by the ebb and flow of the title individual guaranteed by the Constitu bill, but again Mr. Truman vetoed it. is involved. The states' representatives tion, ·but also the sanctity of his rights Tidelands bills of all sorts have been properly described the issue as .affecting to his property. lt is a revolutiensation be paid the States in these submarginal lands. and exemplifies the ingenuity of their the owner. The wisdom of tbe Founding 1953 CONGRESSIONAL RECORD -HOUSE 2349 -Fathers did not give it the power to con There is a charge that the States ·are RECIPROCAL TRADE AGREEMENTS fiscate State or privately owned property trying to steal these lands and that to ACT for any purpose. restore them would be a gift. Mr. BAILEY. Mr. Speaker, I ask The claim that this oil will be avail Nothing could be further from the unanimous consent to address the House able for national defense only if the facts. The Supreme Court itself in the for 1 minute and to revise and extend Federal Government owns it is pure and California case specifically pointed out my remarks. simple nonsense. It has been under that Congress has the constitutional The SPEAKER. Is there objection to State ownership and control that the oil power and right to restore unquestioned State ownership to these lands; The the request of the gentleman from West was discovered, developed, and made Virginia? available to the people and the Govern States are scrupulously adhering to con stitutional procedures by petitioning the There was no objection. ment of our land. I challenge anyone Mr. BAILEY. Mr. Speaker, when to show me one .single instance where Congress to restore their rights. To de scribe such proper legal procedure as a the 82d Congress. renewed and extended one single barrel· of· oil has been denied the 1951 Reciprocal Trade Agreements the Federal Government from the sub steal undermines respect for our legal system. Act, Members of the Congress were merged lands; shocked by the revelation that the State But if that not be enough to dispel Obviously, that false charge is calcu lated to arouse emotions and confuse the Department at the 1945 Geneva Conven any belief that the Federal Government tion had abrogated to itself the express must take this oil for national defense, true -issue. From their inception, the States have, without challenge, owned, right of the Congress to make treaties. let me say this: That in June 1952, in used; and improved these lands until the Now that we have legislation pending the ·senate Judiciary Comm1ttee hear very recent past. To restore that owner in the Congress to amend the Reciprocal ings, the Interior Department and the ship can, by no stretch of the imagina Trade Agreements Act, which will be up General Services Administration even tion, be called either a gift or a steal. A for renewal in this session of Congress, stated that they planned to declare these more appropriate word would be we find the State Department meddling submerged lands surplus to the needs of "justice." in affairs that are strictly the business of any Federal agencies. Federal ownership advocates have the Congress. Just prior to his election, President gone so far afield as to try to involve The following news release from the Eisenhower, in October 1952, _stated that the question of education in the sub Oil Daily under date of March 18 should State ownership would in no way inter merged lands issue. They tell us that be a warning to Members of Congress fere with the national defense needs. Federal control is necessary to provide interested in limiting the increasing im And I call upon my colleagues on both oil for education. ports of residual fuel oil: sides of the aisle, who have so profusely The truth is that neither the Federal NEW YORK, March 18.-A top State Depart spread their admiration and support for Government, the State governments, or ment official, recently appointed by President the President of the- United States of the local governments hav.e the consti Eisenhower, came out strongly today against America in the pages of the CONGRES tutional power to confiscate anything for sharp cutbacks in residual fuel oil imports SIONAL RECORD-tO match their words any purpose, however worthy. That is proposed by a score of Congressmen. with deeds and heed our President's rec John M. Cabot, Assistant Secretary of State one of the fundamental protections for Inter-American Affairs, told a joint meet ommendations and desires with respect written into the Constitution on which ing of the Export Managers1 Club and the to this very important issue. our system of Government is based. Export Advertising Association here, that Next what is there to the charge that - Furthermore, ·any revenues that would passage of such legislation would "prejudice only three selfish States are involved· in be. available for education would be of our interests throughout the Americas." Taking note of more than 20 bills in Con this submerged lands controversy? It is such an infinitesimal amount as to 1 plainly and simply another attempt to -make this argument ridiculous in the gress to reduce residual imports to 5 percent obscure the true facts that all 48 States of the domestic demand for each calendar extreme. Last month the Library of quarter of the previous year, Cabot said: are involved. It is true that only three -Congress reported that if all revenues "I am not going to describe to you at States California, Texas, and Louisiana, from the submerged lands oil became length what is likely to happen if one of have been sued. But the Interior De available for education-every penny of these bills should pass; you yourselves will partment has attempted to seize the them-it would amount to less than readily appreciate· that if we should thus coastal submerged lands in Washington, one-half of one percent of present edu break an international commitment, it will Mississippi, Alabama, and Florida- cational expenditures. not only damage your business in Venezuela ·wlthout even suing them. Further, Mr. , Those advocating oil for education . but also prejudice our interests throughout Truman's executive order, allegedly cre have raised false hopes on the part of the Americas." ating a naval petroleum reserve-if it educators in order to gain their powerful has any legal force or effect whatso support for Federal control. Actually, THOMAS H. MAcDONALD ever-applies to the submerged lands of oil for education has nothing whatso The SPEAKER. Under previous order all 21 coastal States, not just California, ever to do with the basic issue"-()wner- of the !louse, the gentleman from Geor Texas, and Louisiana. ship of submerged lands-and is, at best, gia [Mr. VINSON] is recognized for 10 The strange and dangerous doctrine of a shimmering illusion. minutes. paramount rights, by which the Federal Mr. Speaker, I hope tnat ~is expla Mr. VINSON. Mr. Speaker, in an en Government has attempted to seize these nation of the background of the sub deavor to assess ·things in their own submerged lands, is so revolutionary and merged lands controversy, and this ex proper perspective during the years I so far-reaching that the sovereignty ail;d posure of some of the false and mis · have been in Congress and select those the property rights of all 48 States are leading charges and propaganda that it things that we have done which have threatened. Even the constitutional · has generated, will serve to resolve the contributed best to the peace, happiness, protection guaranteed to private prop issue in the minds of some who may be and welfare of our people at home, my erty is endangered. All natural re coming to grips with it for the first time. mind reverts to the progress that has sources everywhere could' be nationalized I hope all will realize that this issue been made by the Congress, in the provi under this doctrine. And, my colleagues, is not one between Republicans and sion of primary highways, farm-to- those are not my words. They are the Democrats. Nor is it one between a market roads, and city streets. · words of the resolutions of the American few States favored in their natural re The planning of this highway system Bar Association and of the National As sources and the remainder of the States and its construction and maintenance of our land. Nor is it one involving the has had a profound influence on the sociation of Attorneys General of the 48 education of our children. I hope all · economy of our country. States of the United States of America. will realize that, stripped to its funda The change from the seasonally im I do not wish to hold this :floor indefi mentals, it is a contest between those passable roads of 1914, the year I came nitely to answer the endless, baseless who believe in preserving State, local, to Congress, to our present system of all charges of the Federal-control advocates. and private rights, by limiting the powers weather highways of 1953 has required However, there are three additional spe of Federal Government, and those who the investment of public funds in large cific charges that should be explained in would give the Federal Government un amounts. order fully to clear the air for delibera limited power over the people and the It has not just happened as a matter tion on the Graham bill. resources of the N:ation. of course, as many would seem to take 2350 CONGRESSIONAL RECORD =-HOUSE March 26 for granted. It has hap.Pened because While an undergraduate and at a time concentration of funds on a selected system when there was little interest in highways, of main highways, a plan suppo~ted by high of the initial teamwork of the Federal he showed an interest in nigllway engineer way peop1e. This viewpoint, now demon Government with the sovereign States ing-an interest that was to guide his entire strated to have bee:p. a wise one, JJrevailed. as laid down in the Federal-Aid Eighway life. At the suggestion of Dean Marston, The Federal-aid highway system was au Act of 1916 and its subsequent amend a noted teacher and leader in engineering, thorized in 19.21 and the Emeau began its ments. It has happened because of the he undertook for his thesis a study of the wo~k of bringing the States into agreement teamwork of the Federal Government highway needs of farmers and the '"force ~e on a coordinated system to serve the entire with the sovereign States and their coun quired to pull a wagon ove~ different types country. Differing views as to where routes of roads. should cross .State lines produced difficult ties and cities as spelled out in the In 1904 the Iowa Legislatme appointed the J>roblems but all were solved. Federal-Aid Highway Act of 1944 and its "Iowa State College (as an institution) A In connection witll designation of the subsequent amendments. highway commission to make investigations Federal-aid system, inquiry was made of In this systematic creation of our Fed of highways and methods for their improve the War Department as to wllich of the eral-aid highway systems of primary ment. Mr. MacDonald was employed as as nighways were considered to be of principal highways, farm-to-market roads, and sistant professor of civil engineering in strateg.ic importance in event of war. It urban streets now reaching some 677,000 charge of road investigations, and in 1907 was desired to include those ~oads of great was made State highway engineer. est importance to national defense in the miles there is one man who has continu The Iowa highway law was revised in 1913, system being se1ected. The War Department ously served this Congress and the ex providing a three-man commission having submitted a m~p approved by General Persh ecutive branch of our Government as power to coordinate road building through ing. The routes shown on the map were in their guide and counselor since the ex out the State. Mr. MacDonald was ap cluded in the system and were improv~d in panded program took effect in 1919. pointed chief engineer by this commission, the following years. On numerous other Through his quiet honesty both in engi and where previously he had been able only occasions Mr. MacDonald has :requested the neering and intellectual judgments and to suggest improvements and provide stand advice of defense officials and has been in the economical expenditures of great ard plans, he was now able to make his guid guided by their recommendations. .ance really effective. · In 1924 the Bureau placed special emphasis sums of public moneys authorized and Before the end of his 15-year connection on elimination of the .hazard at railroad appropriated by the Congress, he has with the commission, Iowa had become one grade crossings and mged the States to earned those immeasurable gratitudes of the first States .in the Middle West to adopt grade-crossing elimination programs. that come to but few public servants. establish a statewide system of main roads, Thousands of crossings have been elimin~ted He has earned the respect of all who and about a third of the designated 6,400- in the "Federal-aid program. have counseled with him from our coun mile network had been permanently graded, Mr. MacDonald was one of the small group . try. He has been honored by many from drained, and bridged. The next step-hard instrumental in establishing the highway surfacing the system-had been planned and research board of the National Research foreign lands who have been astonished was about to get under way when Mr. Mac- and heartened by the teamwork which Council in l!H'9. He has served as ex-officio ' Donald was called to Washington to become member of the executive committee of the has created our American Federal-aid Chief of the Bureau of Public Roads. , He board since its first meeting in 1923, and haE highway systems. has remained at the helm of the Federal Gov been an active participant in the broad Thomas H. MacDonald, our first Com ernment's roadbuilding agency since that research program of the board that has had missioner of Public Roads, is the man time. great impact on highway development. At tlle time of his appointment to take of whom I speak. charge of the Bureau of Public Roads in 1919 In 1924 Mr. MacDonald was designated On his retirement on Apri11, 1953, af plans were being develope-d for administer Chairman of tlle Joint Bo.a.rd on Interstate ter 34 continuous years of strenuous ing the Federal-Aid Road ·Act of 1916 which Highways appointed by the Secretary of Agri· service in the interest and welfare of marks the beginning of Federal assistance to culture at the request of the American A'SSO· his country, he richly deserves the dis the States in highway improvement. elation .of State Highway O.tficials. The He lmmediate1y sought the advice and as Board was composed of 3 Federal and 21 tinction of having followed one of the State representatives. Through a series of primary precepts of our first great sistance of State officials, acting through the American Association of State Highway Of national and regional meetings, agreement American engineer, George Washington, ficials, in developing Federal-aid procedure of all the States was obtained on routes tc whose wise engineering counsel was to and has consistently followed this practice comprise the ~·u. S." numbered system of "let us raise a standard to which the wise in the development of highway policies, highways, thereby eliminating the great con and honest can repair." specifications, and standards. When he took fusion that had previously existed in route As a token of the esteem with which office the plan of Federal-State cooperation designation, mapping, and marking of routes. was an untried venture. It has been suc The Board also developed the system of all of the Members of Congress hold this standard informational, warning, and danger great American civil engineer and ad cessf~l. ?eyond all expectations. When / it was 1n1t1ated there were no surfaced roads signs now in use on all highways throughout ministrator, I ask that the following interconnecting the large cities of the coun the country. The Board eliminated the short biography Qf his life be placed in try. Industries were located alongside the chaos and confusion that had existed in the CONGRESSIONAL RECORD as an inspira rail terminals. The farmer was isolated highway designation and marking without tion and guide for all public servants and from city life. Federal assistance to the the ald of legislation or compulsory action. especially for those young American en States launched them upon programs that Its recommendations are now accepted by gineers who propose to dedidtte their have made a complete change in all of these all highway agencies. lives, to the best of their ability, to the conditions. An early policy of the Bureau wlth re Twice dj.ring Mr. MacDonald's early career gard to standards for Federal-aid highway service of their country: his future as a highway official' hung in the construction .has been higlily successful. THOMAS H. MACDONALD balance. A change in only a few votes woulu Instead of announcing design standards, Thomas H. MacDonald has divected the have resulted in legislation that probably specifications, and administrative and tech work of the Federal road-building organiza would have ended his highway career. In nical processes to "be used on Federal-aid tion since 191.9, first as Chief of the .Bureau 1917 when the Iowa h~ghway commission work, the Bureau sought to have these de of Public Roads, and since 1939 as Commis was beginning to make real progress on a veloped by committees of the American As sioner of Public Roads. The organization is State system, a bill was .introduced in the sociation of State Highway Officials. The now the Bureau of Public Roads of the De legislature to abolisll the commission and Bureau has membership on all committees, partment of Commerce. He has been re place State responsibility for highways with each of which is composed of m.urden·of proof on a person." this basic law. I invite the attention of that place in 1935 by the distinguished I want to answer that proposition. .It the Members of Congress to that fact in gentleman ·from Tennessee, the Honor is not tibnoxious and it is -perfectly rear the hope that careful consideration and able Joseph Byrnes, Speaker of the .House ·sonable for the simple reason tha-t this study will be given to these measures at that time, 'disclosed th-at many of the 1ellow 'Cannot be :put in jail "!'or it; he that are calculated to destroy -a law that large .concerns, :especiallY some nf the cannot be fined forit. Dnl.Y a ceas-e-and was intended for the preservation of ·the interstate chain stores, were :not only desist order ca.n be i$Sued by reason of small-business men. .competing, which was all right with 'the his proof. Therefore, it is perfectly rea~ .NATIONAL .ASSOCIA'I:ION OF BE'I'AIL GROCERS ON . independent businessmen-no one .can sonable to require him to make tliat complain .against!Clean competition-but WEAKENING .THE _ROBINSON-PATMAN ACT -proof. That is really th-e meat in th·e I am inserting .herewith the'Tesolution they had certain special privileges and eoconut 0n this whole deal. They are unearned benefits and favoritism that that was pa-ssed by the ·National Asso trying to -shift the 'burden of 'Proof. If ciation -of RetaU Grneers Dn preser,ving the little man did not receive from the you do that, the1itt1eman cannot assum·e same sellers and manufacturers. There the Robinson-:Patman Act. It ·is as fol it. He does not llav.e a cbance in the lows~ fore, it was necessary _for Congress to world. He will be .right back where he step in and pass a law not to give the was before 1936, berore the law was put Whereas- little man an unfair advantage over the on the .statute books. I want to ask the 1. There has be-en introduced .into the big man. not to condemn the big man, Senate .and .House of Representatives of the Members of-Congress to watch these bills. 83d Congress S. 540 and .H. R. 63.5 for the not to condemn or legislate against big They are destructive D'f the rights of purpose of amending the :Robinson-Patman ness because it was big-that was not the small-business men who are seeking to Act; -and object at all-but only to give the little .keep and preserve equality only-equal 2. This bill, .if enacted in.to law, would man the same f-air opportunity that the ity of opportunity in business. Be· is allow manufacturers and suppliers to dis big man had under exactly the same cir .not asking ior any special .r.tghts. He criminate .:in pdce, services, and facilities cumstances, to prevent the litt1e fellow against independent grocers beyond that is not asking for ~avoritism. He is not point which is now permitted; and .from ·being ..discr:iminated against. You iasking for anytnmg eX!cept a square deal cannot imagine anything ·being fairer .3. For 3 years individua-ls and groups op and a Iair: oppnrtunity in open com posing the Robinson-Patman Act have per than that. -petition with the biggest concern in the sistently endeavored to weaken seriously the So the law was passed. ~twas known world. He is not objecting to that. Now, protection now afforded to indepenrl.ent as the Robinson-Patman A:ct, and it was the -little 1>eople in .this country are not business under the act: -and signed June '19, 19.36. it ~s now almost -crushed by the big ones because of fair 4. If "this more ·recent attempt 'Succeells 17 year.s old. I believe it b.as been very competition. They can meet fair com the wa-y will be open for gi vtng ·discrimina lle1pfu1 to the little man, just to glve petition. Tlley have proven they can tory price concessions ·and tr.ade advantages him eguality of ,opportunity; In other to large favored buyers, thereby injuring the meet it in any1city lirnd in any State in th-e ability of independent _grocers ·to compete words, if he order.s from a :seller~ manu a lJpited.States, but if you give the big man witb large corporate chain organizations; facturer, the same :quantity -under the an unfair wem>on .to use, and you pennit -and same terms and conditions 'RS the big the big man to get specia1 discounts and -5- Independent -grucen; Kre desirous of mari who has a unit across tne str~et in rebates that the little fellow cannot get, nothing more "ttnan preserving the Robinson competitimi with 'him Drdered, he would then you are just permitting ..the little Patman Act in its present ·form ·and main receive the same price-the -sa:zne price;· man to be destroyed. That is all .in the taining the condltlon"S -under -:Whreh the prin that is .all it said--,under the Bame and -world the laws we now have were en ciples of .tfree and :fair eompetitton can con similar cir.cumstances. tinue to make our econom.y the most eiH.cient acted to do-to give the little man that -and -pro.duettve in the ·wm'ld. llltiSLEi\DING NAMES same ' fair .opportunity to exist ·m BesoJ;veil, That the Nattona1 Asso-ciation :r ilo .not Uairik any'b.ody can complain business. of Retail Grocers reamrm its strong -sup about that. But there are .bills pending IndEUJ.endent business ln this country, port of "th-e RDbinson...;Patman Act in its in tbe Congress that would absolutely I think. jg very .important. It is the present 'far.In. destroy that very fair law. .I ·refer to backbone of · aur colllltry ..and we must Furth;er -resolved, "That 'tihe Natlona1 A"s these bills, some of which are ..called basic preserve it. It is being attacked and soclation Of:R~ta:n Grocers do llereby·reassert brutally attacked, and not directly__;you its opposition to any -effort to repeal or point bills and 1rome -clarification ln"Jls weaken tbls law, -and that -a ·copy of thls miY and so on. 'They 'have different fronts will never hear argument -said resolution oe sent to all "Memoers uf Con and names wbiCb they nse. :But_. in eac11 agam:st wh-at I nave said-no aTgument gress. will be is made like that at all. .It wm be .ap case .the .xesult lD destroy Ihe .FA.SH~ABLE TO .LAMBASTE ANT.ITRU.S.T LAWS prineiple, .which. .as 1: haNe ju&t .stated to proached at .a tangent Q.y .s~ing that · I a.m insert_ing herewitb 11.n 'Rrticle by you, WitS enaeied .into Clhe Jaw by :the this basing point should ·be .changed. th-e 1ionumble stePhen J. 'Spingarn, bi 1ie -wbicll.llila~ just Teferred. How Nobody understands the basing-point comm1ssioner <1f tlle Fecrera1 Tnm.e Com do they -a;pprolleh vhls~ I will tell 'YOU proposition eX"eept those ·who ha-ve given how. As t'he law was -written ln 1936, if it special :consideration and have a 'spe mission, 'that 'ap_peaTed in "'the Nationa! Association Of 'Reta'il Druggists Journal, this little ~ man 'had Tea-son to b:e1'i-eYe cial Teason to know something -about tFl.e that Gener.aJ Foods m' O.ener.al "Electric, basing point. So -uniier · 'the -gu1se of .Mar.clll6, 1953, concerning antimonop or JUlY other big ma.nutacturing roncern ·changing ·the basing 1ro1nt law... which no oly .legislation. .It is a very in.teresti:ag had sold to d:ilm big man across the .street, one will concern .himsel:I about unless .he article" :worthY of :Serimls ;oonsi.der.ation and study.., ·and is as · follows~ to his ~ompetitor ~erm;s the street ·at is en the conmiittee thatls cbar_ged with a price lower than he was .getting under that duty. The membership generallY ANTIMONOPOLY LEGISLATION-IT Is "FASHION• the same circumstances_, 'and be 'filed ·a will nDt-study that basing point law. But ABLE TO 'LA.'MBASTE A'N'i'ITRVST LA'WS ' compl'aint wlth the Fetler.a1 Trade Com under the rguise Df c1l'81n-ging the basing (By Ste_phen .J~ Spir\garn, Comlll;issioner mission, tl:le burden ni .prouf was on tbat pomt Tille_, they -are m'R"king ch'anges that of :the .Feder..al Tr.acle Commission) big man to.sbow thathellad not done it; will.destroy the Iitt:le man by :giv:ing" "the It's quite fashionable these days to lam that he had dealt with him exactly the big ·man the w.eaJ)on to destroy ltim. bast-e the a:ntitrlmt laws. One ;popUlar ap same as .be had dealt with the little .man. That is .exactly what it means.. .proach is to -talk .about the v.agueness ..and uncertainty of the .laws. Of.:ten this ls ac The burden f the proof~ theref-Ql1e, l.s companied with a plea for making ..reason on him to show it. Now he is the only Another weapon ·they will use will be . ableness the test of violat1on which means person who can assume that burden of called clarification of the Robinson- that every case would be considered by the 2354 CONGRESSIONAL RECORD - _HOUSE March 2fJ ·FOR KEFAUVER BILL. courts in its own . particular setting. How to fix different. prices for a commodity of like this would make the laws any more certain grade and quality between customers who The Robinson-Patman Act is -a true anti and less vague has never been clear to me. are in competition, constitutes private regu trust law. Let's keep it that way. In fact, Another approach is to say that the anti lation of the market. It enables the seller let's improve it by putting the good-faith trust laws are utterly unsuited to modern at his pleasure to give advantages to pre defense in its proper context-a defense to be big business and ought to be thrown out. ferred customers and to impose handicaps considered but not one that overcomes a But this is heady, revolutionary stuff which upon those who have incurred his disfavor. showing of pro'Jable injury or destruction of hasn't gone far yet. The more measured It puts in his -hands the power to dictate who ccmpetition. The Kefauver amendment of step-but with the same end in mind-is to shall succeed and who shall fail in the com 1951 to Senator· McCARRAN' ~ · bill in the last talk about the obvious conflict in the anti petitive game. And it is precisely this r?le Congress (S. 719, 82d Cong., which was iden trust laws. For example, in a recent article which, under the antitrust acts, public pol1cy tical with the current McCarran bill, S. 540, in The Saturday Evening Post, the Chairman has decreed should be reserved to the free 83d Cong.) would db just that. It deserves of the Board of the Standard Oil Company and open market. the support of every small and independent of Indiana, Mr. Robert E. Wilson, said t?at The Robinson-Patman Act attempts to businessman. the Sherman _ Act requires competit10n, impose a practical and flexible standard in PLOTTERS OF MONOPOLY and the Robinson-Patman Act tells com a modern industrial organization whose va riety and complexity can only stagger the The Journal of the National Associa petitors not to compete ~oo much. Mr. Wil son presumably thinks that something ought imagination. In most industries, buyers and tion of Retail Druggists of March 2, 1953, sellers alike differ greatly in size, in-the scope to be done about it. contains an interesting article on Plot of their operations, in the economic power ters of Monopoly Scheme To Discard Actually, the Robinson-Patman Act is the which they can wield in the market place. direct product of years of experience under A multiple price structure for a single com Antitrust Statutes-Official Document the Sherman and Clayton Acts. The Sher mOdity, based upon function or -use, is a. Reveals ·Intention-Submitted Report man Act of 1890 was framed in terms of commonplace in many industries. In some Full of Falsehoods. It commences at the common law rule against restraint of instances, as in th'e sale of raw milk for page 330 of the association's publication, trade, but the accent was upon the prohibi fluid use and butter or cheese, the practice and is as follows: tion of conspiracy and the prevention of mo has the sanction of State and Feder.al law. nopoly. · Actually, the dominant purpose was Elsewhere, as in the oil industry, a highly PLOTTERS OF MoNOPOLY SCHEME TO DISCARD the maintenance of the competitive system dynamic technology has resulted in a sprawl ANTITRUST STATUTES-OFFICIAL DOCUMENT as the regulator of economic activity. The ing array of joint products wh'ose costs, in REVEALS INTENTION--8UBMITTED REPORT Clayton Act came along in 1914 to single out practice, are allocated in terms of their re FULL OF FALSEHOODS and outlaw in specific terms certain trade spective capacities to carry the burden. In Spokesmen for the gigantic industrial and practices which Congress regarded as serious effect what this amounts to is a subsidy of financial corporations have often declared it hazards to the functioning of a competitive one product by another. Yet the practice is absurd to charge that monopolistic com economy. Then in 1936 Congress, as there has attained respectability through long binations seek to wreck the system of small sult of an investigation and report by the business in the United States. Yet evidence Federal Trade Commission, congressional standing custom and the sheer necessity for w~rking out some practical formula for to the contrary is available. For 15 cents the studies, and the pleas of small .and inde bringing products to market. Superintendent of Documents, Washington, pendent business, passed the Robmson-Pat In the sale of drugs and some other prod D. C., will send you a summary of a report man Act. Again the purpose was to protect submitted to the United States Department the integrity of the competitive process. ucts, the nationally adver.tised brand, as op~ posed to the house brand, presents another of Commerce by a group of business leaders This time it was done in terms of outlawing of America (most of them are identified with certain abuses of private price-making de industrial facet of amazing intricacy and complexity. Here often the essential differ very big firms) . The title of the report is structive to the maintenance of the free and ence in the commodities is the factor of pub "Effective Competition," and it was released open market. lic acceptability a·chieved through national on December 18, 1952. Critics who claim to see a conflict between advertising. Does it follow that, in spite of Effective Competition proposes a scheme the two pieces of legislation like to make what any laboratory test will show, it is a to scrap the antitrust laws and the obvious price differences the thing that is aimed at in mercantile fact of life that the unlabeled or purpose of the report is to delude the public the Robinson-Patman Act. They make price house brand is something inferior? Yet the to favor cutthroat competition in the mar differences and price discrimination-the plain truth, and we know it, is that the buy ket place. It amounts to a vicious attack on actual phrase in the act-synonymous. But ing public does not treat the two products the system of small business and it carries looked at in terms of function, the whole as identical; and a price differential has been the imprimatur of the United States Depart matter falls into focus. The bead is drawn recognized in mercantile practice-and by ment of Commerce. upon a substantial injury to competition, the courts-as a condition essential to the The committee responsible !or the report that is the real violation. Price differences survival of the independents. includes John L. Collyer, chairman of the in themselves are neither good nor bad, And this is only the beginning. The board and president of the B. F. Goodrich neither lawful nor unlawful. ·It is only when myriad of trade usages such as classifica Co.; Ralph J. Cordiner, president of the Gen price differences occur under the ~onditions tion of customers, discounts for quantity, eral Electric Co.; Harlow H. Curtice, execu specified in the act, when they thwart the and the like are convenient and useful de regulatory processes of the market, that they tive vice president of the General Motors vices in the ordinary running of a bUsiness. Corp.; Frank R. Danton, vic~ chairman of run into trouble. Then they become price Yet they can be-and sometimes are-made the board of the Mellon National Bank and discrimination and violate the act. instruments !or playing favorites. The task Trust Co.; Benjamin F. Fairless, chairman Viewed in these terms, the task of differen in the administration of the Robinson-Pat of the board of the United States Steel Corp.; tiating between lawful price differences and roan Act is to assess these pricing devices in G. Keith :Funston, president of the New York unlawful price discrimination presents·prob the light of the competitive norms estab Stock Exchange; Crawford H. Greenewalt., lems in administration but they are not un lished in the antitrust laws. This is not an president of the E. I. du Pont de Nemours surmountable. At the outset, the pricing easy ~ob. Co.; Eugene Holman, president of the Stand of commodities that do not enter the stream It is this very complexity in the economic ard Oil Co. (N. J.); Charles R. Hook, chair of commerce among the States falls outside problems which dsturbs me about H. R. 635 man of the Armco Steel Corp.; G. M. Hum the act. Second, different prices for the and S. 540 (introduced in the 83d Cong.) for phrey, chairman of the board of the M. A. same commodity are allowable, if the prod permanently adding another ingredient to Hanna Co.; Donald B. Lourie, president of ucts sold are of different grades or qualities. the broth-the so-called good-faith clause, the Quaker Oats Co.; John L, McCatirey, Third, even if the products are of the same which would make good-faith meeting of president of the International Harvester grade and quality, price differences are law competition a complete defense to a charge Co.; T. S. Peterson, president of the Stand ·ful if the purchasers are not in competition of price discrimination even though the ard Oil Co. (Calif.); Gwilym A. Price, presi with each other. Fourth, even if the pur- effect were to injure or destroy competition. dent of the Westinghouse Electric Corp.; chasers are in competition, . the Robinson If the enforcement agency must probe cor Edgar M. Queeny, chairman of the board of Patman Act is not applicable unless there pot:ate intent as well, the job may be well the Monsanto Chemical Corp.; Clarence B. may be substantial injury to competition. beyond human control. Indeed, in many Randal, president of the Inland Steel Co.; And even then, if t:Qe maker of prices can realms of the law, the courts have found the Thomas J. Watson, Jr., president of the In show that the difference in price does not attempt to read the minds of individuals to ternational Business Machine Corp. (and exceed the difference in costs which he has ascertain intent so unrewarding that they others). The report they submitted to the incurred in serving his customers who are have taken the short cut of saying that · a United States Department of Commerce is in competition, his actions do not fall within person presumes the consequences or prob almost unbelievable in that in essence it the orbit of the statute. The residuum from able consequences of his act. And in terms is a proposal that the President of the United these exceptions constitutes the area of un- of the basic function of the antitrust laws, States usurp the authority of Congress to lawful price differences or price discrimina good or bad intent is irrelevant. It is the nullify laws .which were enacted in a~cord tion. result that is important. If industrial con ance with the procedures of the Constitu Placed in its setting, the rationale of the duct undermines the integrity of the com tion. Robinson-Patman Act stands out boldly. petitive process, it should be stopped. This The report of the business moguls calls In etiect, it says that private business cannot is the basic philosophy that· underlies both for complete wreckage of the antitrust laws. . play favorites in the competitive struggle. the Sherman Act and the Robinson·-Patman Then there is a proposed nostrum. It is in Clearly, to allow a manufacturer arbitrarily Act. . · the form of a new rule of reason. The new 1953 CONGRESSIONAL RECORD -HOUSE 2355 ruie of reason is to be defined in accord And again the report asserts "the Robin- efficiency and wherein new firms can readily ance with an explicit standard (effective son-Patman Act tends to prevent any price enter into• the capitalist adventure, also competition). competition that might injure a competitor." serves consumers with more and better "Ef!ective competition"· is a pleasant These statements are false and deliberately goods and .services at lower prices. And we phrase and, if undefined, it would appear false. Every businessman knows that the think such a climate serves the Nation in to be unobjectionable. But the report has Rooinson-Patman Act in no way restrains wholesome social ways. defined the phrase. Proposing this phrase any business, big or small, from making price The Robinson-Patman Act is not incon as the ultimate and sole test of future anti reductions. Under this law any business firm· sistent with the Sherman Act. On the con trust policy, the report has. offered two alter may reduce its prices as much as it likes and trary, the Robinson-Patman Act is a neces native definitions which are to apply in as often as it likes; and any firm may reduce sary specific for the practices which the more conjuncture. Both d-efinitions provide purely prices for the purpose and with the result of general language of the Sherman Act forbids negative tests of monopoly, and should there taking business away from competitors and in principle. Price discrimination, which the ever be any monopoly which would not be thereby injuring competitors. The Robin Robinson-Patman Act restrains, is an abuse excused by the first definition, it would son-Patman Act is concerned only with price of size. It is a practice which gives advan surely be excused by the second. discrimination-a practice by which large tages to larger firms over smaller firms, and The first definition of "effective compe firms abuse their size to take advantage of the advantages increase in proportion to the tition" is simply "ceaseless striving among smaller firms. size of the competitors. If sufficient abuse of competitors, all endeavoring to expand their Section 2 of the Clayton Act was enacted the practice is permitted, the practice can share of the market--and the total size of and subsequently the Robinson-Patman Act be used by inefficient large firms to destroy the market, as well-hy producing relatively was enacted, only after many years of disas more efficient small firms. Hence, discrimi more and better goods and services at rela trous experience with discriminatory methods nation without any restraint inevitably re-· tively lower prices." of pricing. Most of the high concentration suits In the destruction of smaller firms and "Competitors," as conceived by the busi of business which characterizes the field of the progressive centralization of business in ness moguls, ·include almost all business productio:a today was attained in the days the hands of fewer firms, until ultimate firms that go after the consumer's dollar .. before there were any laws to prevent these monopoly is reached. As a specific example offered by the report,. practices. -. The facts show that big sellers Another of the purposes of the Sherman the manufacturers of aluminum are held out have used the high prices they are ·able to Act is to condemn all artificial restraints to be competitors of the manufacturers of get in many, scattered markets to subsidize upon the price mechanism, particularly those steel, copper, zinc, lead, tin, wood, textiles, their competition against small sellers in restraints which hold prices above the supply plastics, paper, clay, glass, leather, and cork. particular markets. And the result has been and demand level. There again, the Robin With competition so conceived, there could that small firms were either destroyed or son-Patman Act accomplishes, insofar as it be very few actual or potential cases of mo driven into merger. is enforced, what the Sherman Act too fre nopoly which would fail to pass the test of The facts' also show that wherever there quently only aims to accomplish. effective competition. Even the most com has been discrimination, big buyers have The business moguls know these facts: plete monopoly must and does put forth received price advantages in ·excess of the 1. That unrestricted price discrimination some efforts which pass for ceaseless striving. sellers' cost savings in serving those buyers. creates a competition which Is impossibly Moreover, the inevitable growth factors When it became apparent that a few large hard for small business and supersoft for big would pass any monopoly by the rest of· this chains were bringing about a wholesale de business. test--save only the monopoly in a declining struction of independent firms in the dis 2. That the more price discrimination i~ industry, such as. horse-drawn vehicles and tribution field, and that the growth of mo limited by the rules of competition, the steam-powered locomotives. nopoly In this field would duplicate that al harder competition becomes for big business The second definition of "effective compe ready attained in the production field, Con and small business equally. tition" offered by the industrial and financial gress took action to insure small sellers a 3. The harder the competition becomes, tycoons in the report they su~mitted is even measure of protection and to insure small the more the highly advertised efficiency of more amazing. It is simply "that business buyers equal treatment--insofar as equal big business is proved to be exaggerated and rivalry, existing and potential, which tends treatment is justified by optimum efficiency frequently completely false. over a period of years to serve the public In the business system. . The central lie of the report is that busi interest in (a) providing Jl.lternatives and · Where prices are discriminatory neither ness moguls pretend· to be concerned with thus giving opportunities for freedom of the spirit nor the letter of the Robinson fostering competition, ·when actually their choice of goods and services; and (b) notre Patman Act objects to the low price; the aim is to rationalize monopoly and to reverse stricting the opportunity for others to objection Is to the high prices which put this Nation's historic antitrust policy. But engage in such competition." small buyers to an unfair disad~antage or beyond that, the report contains an uncom It taxes the imagination ·to conceive of a which are used to "subsidize" selective price mon number of deliberately false statements, monopoly so broad and complete that there cutting against small sellers. · misleading .statements, twisted half-truths, would not· be, outside the control of the The business moguls in their report repeat facts presented in contexts where they never monopoly, alternative goods or services on another tired old propa~anda tune. And it· occurred, and so on. When the big-business which consumers might spend their dollars; repeats this tune with monotonous repeti sponsors of this report try to sell their prod and it is equally difficult to imagine a mo tion. It is the tune to the effect that the ucts or services to the public, there are nopoly so broad and · complete that it re.; Sherman · Act requires hard competition bounds beyond which they cannot go to pre stricted the opportunity for other& · ~o pro while the Robinson-Patman Act requires sent false or distorted-claims for their prod duce and sell some other goods or services. soft competition and hence the Robinson ucts or services. There are specific laws to - The target of the business moguls is over Patman Act is inconsistent with the Sher .restrain them, and to restrain all business whelmingly section 2 of the Clayton Act, as man Act. men. There are, of course, no laws to pro amended by the Robinson-Patman Act. The Do the business moguls actually believe hibit false and misleading claims to sell the report contains 19 summary recommenda that the Robinson-Patman Act creates soft public political ideas for commercial advan competition? Then in the event they do, tions, of which 6 are aimed at destruction· of tage. The bounds of com:rp.on decenc~ wbat now remains of the Roblnson-Patman they have concocted the world's strangest should and must, however, impose some self Act. The Robinson-Patman Act is specific and most contradictory set of recommenda- . restraint to self-seeking in this field. The and definite and, although the Supreme tions. For all of their other recommenda report, 'Effective Competition, goes far be Court ruled most of Its effect out of exist tions invariably bless monopoly and propose yond the bounds of common decency. ence by Its recent decision in the Standard abolishing all laws interfering with monopoly. The authors of Effective Competition can Oil Co. of Indiana case, it is still most im Surveying their recommendations as a not speak for fully 98 percent of the business portant to small business of all the anti whole, it is seen that the tycoons of industry firms of the United States. It seems self trust laws. It was passed to create the kind and finance have proposed abolishing only evident, moreover, that the report does not of competition in which the most efficient those antitrust laws which are in some de express .the considered views.of many of .the firms, and not inevitably the biggest firms, gree effective against monopoly. It is only men In whose name. it has been written, would win out in the competitive struggle. such laws that are even discussed. As to Surely these men know that the policy rec Hence the statute which restrains abuse of those phases of legislation which are no.to ommended in that report would lead to dis power and tends to force big firms to com riously ineffective, the report is silent. It is aster for all businesses, small and big. It pete with small firms on the basis of e~ men known that new monopoly problems is ·also true that disaster would befall small Ciency and low prices emerges as the legisla have become prominent since the present business first. antitrust laws were passed, and that expe tion most hated by the gigantic industrial RECONSTRUCTION FINANCE CORPORATION and financial corporations. rience has proved these laws to contain seri The recommendations in the report for do ous gaps in other respects. The report is The Reconstruction Finance Corpora ing away with the Robins'on-Patman Act ·are silent on these matters, too. Apparently the tion is under attack notwithstanding it based upon false assertions which certain writers were so busy thinking up ways for has saved thousands of small independ segments of big business have widely publi escaping the antitrust laws that they over ent businesses that could not have ex cized during the past few years. For exam looked the possibility of taking a broad view isted without the aid given by this ple, the report asserts that under the Robin of antitrust problems. A competitive cllmate which ·Berves small agency. son-Patman Act "price reductions are ruled I am inserting herewith a letter re illegal if they may possibly injure competi business, a competitive dimate .wherein small tors of the seller or the buyer." firms can actively compete on the basis of ceived from Mr. R. J. Sims, president of 2356 CONGRESSIONAL RECORD - - HOUSE March 26 the Clinchfield Concrete Co., Inc., of· ployees of the Committee on Un-Ameri- Whereas articie I. seetion 6, of the Consti Kingsport, Tenn., concerning this mat can Activities have been subpenaed to tution of the United States provides: "They appear on Monday, March , and Tues- (the Senators and Representatives) shall in ter. It is as follows; 30 all cases, except treason, felony, and breach CLINCHFIELD CONCRETE Co., INC., day, March 31, 1953, in Los Angeles~ of the peace, be privileged from arrest dur Kingsport, Tenn., March 4, 1953. Calif., to testify as witnesses and give ing their' attendance at the session of their lion. WRIGHT PATMAN, their depositions in the case of Michael. respective Houses, and in going to and re .Representative From Texas, House of Wilson et al. against Loew's Incorpo- turning from the same; • • • and for any .Representatives, WashingtonA D. C. rated et al., a private civil action for speech or debate in either House, they (the DEAR CONGRESSMAN: Our company falls into damages and injunction pending in the Senators and Representatives) shall not be the classification of small business and this .f · questioned in any other place"; and letter is written to you in hopes that you will Superior Court of the S t a t e o f Ca l1 orn1a Whereas the service of such process upon . not do anything to disturb the Rec~mstruc in and for the County of Los Angeles, in Members of this House during their attend tion Finance Corporation. which certain Members, former Mem- ance while the congress is in session might I have seen in our newspapers a consider bers,. and employees of the House are deprive the district which each respectively able number of statements usually attributed _ named as, parties defendant and are represents of his voiee and vote; and to Senator BYRD, of Virginia, about abolish charged with conspiring against the- Whereas the service of such subpenas and ing the Reconstruction Finance Corporation. plaintiffs in said case to the detriment of summons upon Members· of the House of In our city of Kingsport I know several the plaintiffs. Under the precedents of Representatives· who ·are· members of a duly large firms who owe their entire economic. constituted committee of the House of Rep life to the Reconstruction Finance Corpora the House, these Members, former Mem- resentatives, and the service of such sub- tion. It is practically impossible to secure a. bers, and employees are 'Unable to com- penas and summons upon employe.es of the capitalizing loan of any amount from a com ply with the subpenas without the con- House of Representatives serving on the staff mercial bank. In 1947 I was instrumental in sent of the House, the privileges of the of a duly constituted committee of the borrowing for three companies in which I House being involved. House of Representatives, will hBimper and was interested, a total of $225,000. These Mr. Speaker, I send to the desk a privi- .dela¥ if not completely obstruct the work of loans have now all been paid off with the ex 19 d k such committee, its members, and its staff ception of one, which has a balance of $15,- leged resolution _ committee and 41 Doe, 42 Doe, 43 Doe, 44 Doe, or not the House is sitting, has recessed, 01: ------45 Doe, 46 Doe, 47 Doe-, 48 Doe, 49 Doe, and has adjourned, to hold such hearings, and AFTER RECESS 50 Doe were representatives of said com- to require the attendance of such witnesses mittee. and the production of such books, papers, The recess having expired, the House "At all times mentioned herein and with and documents, and to take such testimony, was called to order at 2. o'clock and 24 respect to the matters hereinafter alleged as. it deems necessary. Subpenas may be minutes p. m. the defendants named, in the preceding para- issued over the signature of the chairman or graph acted both in their official capacity by any member designated by him, and may with relation to said House Committee on be served by any person designated by such QUESTION OF THE PRIVILEGE OP Un-American Activities and individually in chairman or member. The committee is au THE HOUSE-CASE OF MICHAEL nonofficial capacities"~ and - thorized to incur all expenses necessary for Whereas part V of said complaint contains the purposes hereof, including but not WILSON ET AL. v. ~OEW'S INCOR an -allegation that "on and prior to March limited to expenses of travel and subsistence, PORATED ET AL. 1951 and continuously thereafter defendants employment of counsel and other persons to herein and each of them conspired together assist the· committee or subcommittee, and Mr. HALLECK. M):. Speaker, I rise and agreed with each other to blacklist and if deemed advisable by the committee, to to a question of the _privil-ege of the to refuse employment to and exclude from employ counsel to represent any and all of House. employment in the motion-picture industry the Members, former Members, and em The SPEAKER. The gentleman from all employees and pe:rsons seeking employ- playees of the House of Representatives. Indiana will state the question of privi ment in the motion-picture industry who named as parties defendant in the afore lege. had been or thereafter were subpenaed as mentioned action of Michael Wilson et al. v. witnesses before the Committee on Un- Loew's Inc. et al., and such expenses shall be Mr. . HALLECK. . Mr. Speaker, several American Activities of the House. of Repre-· paid from the Contingent Fund of the House members. former members. and em- -sentatives • • •"; and of Representatives on vouchers authorized 1953 OONGRESSIONAL R~CORD -· HOUSH 2357 by said committee and sig.ned by_the chair- . It is further provided: man thereof and approved by the Committee tives are subpenaed to appear as wit on House Administration; and be it further That for any speech or debate in either nesses in civil or criminal actions here in Resolved, That a copy of. these resolutions House they- the District of Columbia and invariably be transmitted to the Superior Court of the Referring to the Senators and Repre before the Member of the House is per State of California in and for the county of sentatives-- mitted to go down there and testify he Los Angeles as a respectful answer to the shall not be questioned in any other place. presents here· a resolution very similar subpenas of the said court addressed to the to this and obtains permission of the aforementioned Mem~rs, former Members, Through the years that language has House of Representatives to appear and and employees of the House of Representa tives, or any of them. been construed to mean more than the so testify. Of course that itself is in speech or statement made here within recognition of the necessity of the pres Mr. HALLECK. Mr. Speaker, I think the four walls of the House of Repre ence,. and the right of a Member of Con probably a few words in explanation of sentatives; it has been construed to in gress to be present, here for the sessions the resolution and the reason for its clude the conduct of Members and their in order to carry on with his responsibili being here are in order at this time, in statements in connection with their ties to the people he represents and to spite of the fact that the resolution for activities as Members of the House of carry on with others the necessary work the most part speaks for itself. Representatives. As a result, it . seems of the Congress of the United States. By way of explanation, as most of clear to me that under the provisions of Mr. McCORMACK. Mr. Speaker, will us know, certain members of the House the Constitution itself the adoption of the gentleman yield? Committee on Un-American Activities the r-esolution which was presented is Mr. HALLECK. I yield to the gentle and employees of that committee are certainly in order. man from Massachusetts. presently in the State of California con Let us assume that any regular stand Mr. McCORMACK. Mr. Speaker, the ducting certain investigations as a part ing committee of the House of Repre . resolution here is a proper course of · of their ·operation as a standing com sentatives should conduct a hearing and action, and the only wise course of ac mittee of the House of Representatives. any one of us were there as a Member tion, for the House to take on this occa They ate there in their official capacity of the House in his official capacity. Let sion, having in mind the circumstances as members of the committee and em us further assume that this Member of this particular case. This resolution ployees of the committee, and as Mem saw fit to elicit certain information from was considered by the leadership on both bers of the House of Representatives a witness by questions and as a result of sides, by the chairman of the Committee and employees of the House of Repre that questioning the witness, employed on the Judiciary and the distinguished sentatives. They are there, further by someone, subsequently lost his job. gentleman from Pennsylvania [Mr. more, by direction of the House of Rep Is the Member of the House of Repre GRAHAM]. It was the unanimous opinion resentatives, and they are there on offi sentatives to be held accountable and of those present, Speaker MARTIN, former cial business as evidenced by the action haled into court on a suit for damages Speaker RAYBURN, Majority Leader HAL taken in the House yesterday excusing for his participation in the operations LECK, myself, my good friend from Illi them from attendance here by reason of of that committee as a member of the nois [Mr. REED], and my good friend, their performance of official duties in committee and as Members of the House the gentleman from Pennsylvania [Mr. California at this time. of Representatives? To me it seems GRAHAM]. For the House to take any The suit that has been filed in the clear that no such action can be taken other action would be fraught with State courts of California arises out of under the Constitution. danger, for otherwise there is nothing certain alleged conduct, or activities, or Furthermore, this committee that is to stop any number of suits being filed operations, of the House Committee on presently in California is there on offi against enough Members of the House, Un-American Activities of the 82d Con cial business for the Ho:use of Repre and in summoning them, to impair the gress. · ~nough has been included in the sentatives and as a part of the House of efficiency of the House of Represepta resolution, I think, to indicate the na Representatives of the Congress of the tives or the Senate to act and function ture of the suit which is, as I under United States. Everyone recognizes the as legislative bodies. The members of stand, one for damag.es asserted against investigatory-process as a part of the leg the Committee on Un-American Activi certain corporations and private individ islative process. So, under the rules ties are out . in California in the per uals, and likewise against Members of creating the committee and under long formance of their official duties. While the House of Representatives and em-. established precedents, the members of there they have been summoned. I as ployees of the House of Representatives, that committee and their employees are' sume it is a summons from the plaintiff admittedly by the provisions of the com there operating and acting as an arm of to have them appear for the purpose of plaint itself involving them in the con the House of Representatives. giving depositions. However, that is im duct of their official duty. To me it seems very clear that if a material; they are out there on official If you noted the reading of the resolu civil suit for damages can be filed and business, and committees of this body tion it is clear that the privileges of the summonSes served on Memb-ers of the are the arms of the House of Represent ·House are infringed by this action. House of Representatives who are there atives. A committee of the House of The purpose of this resolution is to avoid present, followed by subpenas requiring Representatives is an agent, or, as some the immediate effect of the action sought them to attend and give testimony as say, a servant of the House of Repre to be taken in California and at the witnesses on deposition, as is pointed sentatives. They are now out there offi same time to direct the Judiciary Com out in the resolution, then the work of cially; they are summoned, and there is mittee of the House of Representatives the committee could be completely ob no question but what that seriously in to make a thorough study and investi structed, since conceivably the question terferes with their ability to perform gation of the whole matter and report ing of the Members of the House of Rep their duties as Members of this body. to the House of Representatives with resentatives who are presently there On Monday a very important bill is going respect to it and other matters of like could be carried on interminably, and to come up in the House of Representa character that may arise in the future. the work of the committee stopped. tives. The people throughout the coun I have spoken of the fact that the Certainly, the Constitution never con try are very much interested one way complaint recognizes the official char templated that sort of interference with or the other. They should be here, and a acter of the conduct and actions of Mem the conduct of the affairs of the Con summons of this kind would interfere bers of the House of Representatives and gress of the United States. with such Members pel'forming their the employees of the committee. The I .do not know that it is necessary for duties. I refer to that simply as an il Constitution provides that, as recited in me to say anything fur.ther about this lustration of a situation that now con the resolution:· resolution except to state again that the fronts the members of that particular They- maintenance of the status quo is in- committee. volved subject to a study and determina- In this resolution there is authority to Referring to the Senat ors and R epre- tion by our Committee on the Judiciary the Committee on the Judiciary to hire sentatives-- properly staffed to inquire into the whole counsel to defend any Member or for shall in all cases except treason, felony, and matter and to determine just what breach of the peace be privileged from arrest mer Member or members of the staff during their attendance on the session of should properly be done on all sides. named as a defendant in the suit in Cali their respective Houses, and in going to and As we all know, from time to time fornia. The reason for that is this: We returning from the same. ·, Members of the House of Representa- are not clear as to whether or not the 2358 CONGRESSIONAL RECORD .=....HOUSE March 26 Attorney General will be able to repre situation, where the House is the judge we would read the bill for amendment sent Members of the House or members as to whether or not that one individual under the 5-minute rule. of the committee staff in a suit arising should respond to the subpena. I think · Monday and Tuesday being Jewish out of a performance of their official the precedent is a most dangerous one, holidays, as I previously announced, duties. A section of the law, as I under and that the resolution should be there will be no record votes on Mon stand, permits the.Attorney General to adopted. day or Tuesday unless someone should represent officers of the House of Repre The SPEAKER. The question is on perchance undertake to have a record sentatives, and whether or not the chair the resolution. vote on the adoption of the rule, but I man of the committee and members of The resolution was agreed to. trust that will not happen because I the committee are officers is a legal ques A motion to reconsider was laid on think everyone recognizes that this is a tion to be resolved. I would personally the table. matter that must be considered and dis be inclined to think that they are not, posed of in the House of Representa . tives . but my opinion here has no bearing on ADJ_QURNMENT UNTIL MONDAY the outcome of such a question. The My guess and my hope would be that Speaker, for example, is an officer of the NEXT we could conclude the reading of the bill House of Representatives, as are others Mr. HALLECK. Mr. Speaker, I ask for amendment under the 5-minute rule who are officially elected, but whether or unanimous consent that when the House on Tuesday, which would bring the vote ·· not the chairman of the. committee or adjourns today it adjourn to meet at on final passage of the bill or on any amendments that might be adopted or on the members of the commi~tee, simply noon on Monday next. because they are. elected by the House, The SPEAKER. Is· there objection to the motion to recommit on Wednesday. are officers within the meaning of the law the request of the gentleman from In As to any further program, I under · is a question for the courts. Naturally, . diana? stand the Committee on Agriculture has reported a bill which has to do with cer we want to see that the pres ~nt Members There was no objection. of the House of Representatives and for tain support-price arrangements on to mer Members and members of the staff, bacco grown in certain areas. If a rule present and past, are represented by able AUTHORIZATION TO SIGN were granted on that measure so that we could get it up and dispose of it on counsel and not compelled to defend ENROLLED BILLS themselves at their own expense, and Wednesday, 1 would be inclined to put that provision in this resolution is put Mr: HALLECK. Mr. Speaker, I ask that bill on the program. in there in order to meet that situation. unanimous consent that notwithstand · Also, there is a bill that has been re Of course, the Committee on the Judi ing the adjournment of the House until ported or may be reported from the ciary will look into it and cover that Monday next the Clerk be authorized to Committee on Armed Services having- to angle, and I have no doubt that the receive messages from the Senate and do with the appointment of an assistant Attorney General will take the proper that the Speaker be authorized to sign or deputy in the Central Intelligence action. This resolution, as you will note, any enrolled bills and joint resolutions Agency. If a rule is granted on that we authorizes the Committee on the Judi passed by the two Houses and found might dispose of that on Wednesday.' ciary to look into this particular matter truly enrolled. . Mr. McCORMACK. I understand the and to advise the House of Representa · The SPEAKER. Is there objection to administration is very anxious to get the request of the gentleman from In that bill through as quickly as possible tives. The House has always cooperated because they want to fill that-position. with the courts. and the House always diana? There was no objection. Mr. HALLECK. The gentleman, of will be cooperative with the courts, but, course, is referring to the Central Intel on other hand, we must always have ligence Agency. regard for the protection of our own PROGRAM FOR NEXT WEEK Mr. McCORMACK. Yes. privileges a.nd our own integrity and our Mr. HALLECK. That is the situation, own rights, and that includes the privi Mr. McCORMACK. Mr. Speaker, I as I understand it. I think the bill was leges and the integrity and the rights of ask unanimous consent to address the redrafted. At one time last week it individual Members. The privileges and House for 1 minute. looked as if we might be able to bring it immunities of the legislative body and The SPEAKER: Is there objection to up this week, but -something happened its Members have been jealously guarded the request of the gentleman from Mas which required some redrafting of the and protected since early times, and s.achusetts? bill. As I understand it, it has been re must be continuously defended and safe There was no objection. drafted and very likely it can come up guarded in order for our system of gov- Mr. McCORMACK. Mr. Speaker, I for action next week. ernment to endure. · have asked for this time for the pur · Mr. McCORMACK. I understand this So, Mr. Speaker, I join with every pose of asking my friend from -'Indiana relates to the Deputy Chief of the CIA thing my distinguished friend from Iridi if he will announce the program for next the Central Intelligence Agency, to au ana, the majority leader [Mr. HALLECK], week, if he is prepared to do so. thorize military men to be appointed. has said, and again reiterate that this Mr. HALLECK. As I indicated last You will recall that we did authorize a resolution represents the view of the week, we expect to bring up the bill from chief to be appointed 2 or 3 ·years ago leadership of both the Republican and the Committee on the Judiciary some when Gen. Bedell Smith was appointed. · the Democratic parties. times called the submerged lands bill, Mr. HALLECK. Yes. Mr. SCOTT. Mr. Speaker, will the and other times the public lands bill. Mr. McCORMACK. I think the gentleman yield? Mr. McCORMACK. And by some of us amendment is to make sure that two Mr. HALLECK~ I yield to the gen the bill that will take away from the military men-the Chief and Deputy tleman from Pennsylvania. people of the entire country billions. of Chief-cannot be appointed at the same Mr. SCOTT. May I make a clarifying dollars. · time. I am acquainted with it, and I can remark. I think the RECORD ought to Mr. HALLECK. By some; yes. assure the gentleman from Indiana I am show the extreme danger of the prec The bill is to be reported by the Com only too glad to cooperate in every way edent which would be created by what mittee on the Judiciary. The Rules possible to get the bill through before the is sought to be done in California, be Committee has been given until mid Easter recess, because they are very anx cause the California proceeding is a sort night Saturday night to file a rule. I ious to make the appointment. We ali of open-end process. If it is applicable anticipate that· rule will be granted. ought to be concerned about that, and to a certain number of members of one Without undertaking to dictate to either we, of course, are all interested in having committee, some other court could pro the Judiciary Committee or the Rules the necessary heads of this agency ap ceed to issue similar subpenas appli Committee, I trust that the rule will pointed. It is of vital importance to the cable to another committee, and so on provide for such hours of general de country. until the House could actually be de bate, after the adoption of the rule on Mr. HALLECK. I thank the gentle prived by concert of aetion of a quorum Monday, that the general debate could man for his very fine offer of cooperation for the purpose of transacting business. be concluded on Monday. Then we in trying to get the matter expedited. I think it is very different from the case wouid expect to start reading the bill :for Mr. BAILEY ~ Mr. Speaker, will the of an individual who is subpenaed here. amendment~ We might read the :first. gentleman yield? in the District of Columbia for a given section on Monday. Then on Tuesday Mr. McCORMACK. I yield. 1953 CONGRESSIONAL RECQR,D =..HOUSE 2359 Mr. BAILEY. Going back to the sub Mr. McCORMACK. Mr. Speaker, in is, rather, a different area more aptly merged oil lands legislation, you are pro welter of words that have beclouded the described as the "marginal sea," and viding for a vote on that on Wednesday so-called tidelands oil issu~. I think it beyond such underwater acreage, the in for final passage? eminently fitting and desirable that all of definite · expanse of submerged land Mr. HALLEOK. Yes. us here bring to bear upon tpe matter known as the Continental Shelf. Mr. BAILEY. May I remind the dis the light of reason and the wisdom of The marginal sea area is that land tinguished gentleman from Indiana that sober thinking. which lies seaward of the low-tide mark that is also a holiday throughout the At the beginning of this Congress, I of the tidelands and which extends out mine-field country. Most of the Mem had anticipated, in the view of past ex ward to the so-called 3-mile limit. To bers of Congress representing mining perience, that we would be called upon to those of us who remember the enforce districts have agreed to go back to their give serious consideration to some form ment problems of the noble experiment districts and make speeches on that day. of a bill which would purport to con of prohibition, the 3-mile limit is a term What solution does the gentleman from firm and establish the titles of the States of definite sovereign connotation, and Indiana have for that? to the lands -and their concomitant re never during the period of prohibition Mr. HALLECK. That has been called sources--beneath the navigable waters which, incidentally, was almost co to my attention. As the. gentleman from within State boundaries. . terminus with the last lengthy period of West Virginia knows, and as the gentle Through some magic of phraseology, Republican administration of the Fed man from Massachusetts also knows, he or perhaps by deliberate attempts to de eral Government--was there any ques has done the same as I have. We try as lude, the question implicit in such a bill tion raised about the enforcement juris best we can to adjust the affairs of the has familiarly become known as the diction of Federal agencies in the 3-mile House of Representatives to meet the tidelands issue. marginal sea area. Since jurisdiction necessities of the individual Members in At the outset, I wish to demur from the is one of the attributes of sovereignty, the very sort of matter that the gentle propriety of such designation, and at the it is more than difficult now for my poor man from West Virginia mentions. risk of seeming somewhat elementary, intellect to grasp the arguments of those Mr. BAILEY. I would like to remind I should like to begin my remarks upon . who contend that suddenly this area of the gentleman from Indiana that this is this vital subject with a definition of marginal sea is one which belongs ex the first time that a request of this na terms. clusively to the sovereign States. What ture has been made by anybOdy from the As those of us in this body who have trespassers our Federal Coast Guards mine field section of the country. been exposed to the ramifications of the men were from 1918 to 1933. Mr. HALLECK. As I have said to cer legal subject c~lled real property know, My point, Mr. Speaker, is that it is tain of the other Members who have spo the term "tidelands" has a specific con this area, and this area alone-the mar ken to me about that, nothing would notation in the law. Appropriately de ginal sea-which the Supreme Court de please me more than to try to adjust the fined, this term means the strip of land, clared to be under the sovereignty and legislative program so that each and somewhat indefinite of measurement, jurisdiction of the United States and to every Member would suffer no inconven that is submerged when the tide is at its which the Federal Government pos ience. But at the time I made the an :flood and accessible for pedestrian loco sessed paramount rights of title. It so nouncement that we would have the vote motion when it is at its ebb-to the decided first in the California case in on Wednesday, the matter had· not been water's edge. I do not know how I can 1947, and again the Louisiana and Texas brought to my attention. Also, there is better describe it in layman's language. cases in 1950, and I may point out that the overall desire of all the Members to Now the land described within the the issue was decided in the type of suit get to their homes or other places for compass of such definition, contrary to for which the Supreme Court was ex Easter. That also has had to be taken popular belief, is not involved in any pressly established as the appropriate into consideration. manner, shape or form in the bitter con forum ·by our Constitution. Mr. GRAHAM. Mr. Speaker, will the troversy which has raged in the past few Were the issue not so momentous, I gentleman yield? years between the Federal Government would hardly advert to the contention Mr. McCORMACK. I am always hap and certain of our sovereign states. At that the United States does not have py to yield to my distinguished colleague. .no time to my knowledge has anyone, jurisdiction and control over the sub In fact, may I say I am honored when officially or otherwise, claimed title to merged area described as the Continen the gentleman asks me to yield. such lands on behalf of the Federal tal Shelf. Yet, I understand that Lou Mr. GRAHAM. Mr. Speaker, may I Government. Like any other novice in isiana and Texas assert ownership for state for the benefit both of the leader the law of real property, I concede that varying distances over 20 miles seaward. ship on the majority and minority sides the states have a valid and vested title As far back as 1945, President Truman that yesterday I introduced a clean bill, to and in the tidelands adjacent to and issued a proclamation to the effect that - H. R. 4918, having reference to the mat contiguous to their individual seacoasts. the seabed, the subsoil, and the resources ter of the submerged lands. In addition So far as I know and am able to ascer- of the Continental Shelf appertain to the to what the majority leader has stated, . tain the responsible agencies of the Fed United States and are subject to its we hope to have finished by tomorrow ·eral Government have never raised any jurisdiction and control. Obviously, the night the report so that it will be avail question concerning the validity of such area; involved is one which would be gov-• able at the document room on Saturday title. erned by the rules of international law, morning so that tlle Members can get Furthermore, and again so far as I and so far as I know, no foreign sov both a copy of the bill and a copy of the have been able to learn, the· Federal ereignty has ever challenged the force report and familiarize themselves with Government and none of its responsible and effect of the proclamation. this bill and the report so that we will be agencies, have ever asserted any title The edge of the North American con all set to go on Monday morning. or dominion over the so-called inland tinent, its shelf, extends for varying Mr. HALLECK. May I remind the waters-by which I mean the coastal in lengths, up to nearly 300 miles, into the gentleman from Pennsylvania to get dentations in the form of river mouths, Pacific and Atlantic Oceans and the Gulf permission to file that report, if he has bays, protected harbors, and such bodies of Mexico. This shelf is but the normal not already done so? of water commonly designated as lakes and natural extension of the marginal Mr. GRAHAM. We have already done and ponds-as distinguished from open sea area, and the precise point of the so. I thank the gentleman. water generally designated as the "sea." Supreme Court opinion in the California For over 100 years, the Supreme Court decision was that California never had of the United States, in conformity with any title to the marginal sea area. THE SO-CALLED TIDELANDS OIL our basic law of real property, has con ISSUE sistently held, and I believe rightly so, What it did say was that- Mr. McCORMACK. Mr. Speaker, I that tidelands and inland waters are we decide for the re·asons we have stated that California is not the owner of the 3-mile ask unanimous consent to address the part of the land masses of the respective. belt along its coast, and that the Federal House for 15 minutes. States in the Union. Government, rather than the State, has The SPEAKER. Is there objection to The area in controversy between cer paramount right in and power over that the request of the gentleman from Mas tain of our sovereign States and the Fed .belt, an incident to which is full dominion sachusetts? eral Government, therefore, is neither over the resources of the soil under that There was no objection. the tidelands nor the inland waters. It water area, including oil. 2360 CONG}rnSSIONAL .RECORD -HOUSE March 26 This conclusion was based upon the States, and it reaffirmed its holding in Mr. KEARNEY and to include an edito irrefutable logic that the National Gov the recent controversial cases with em rial. ernment not only had acquired the strip, p:p.asis. Mrs. RoGERS of Massachusetts and to but had from the time of the foundation I would be naive and disingenuous, include Winston Churchill's tribute to .of the Republic exercised functions of however, if I did not admit at this point Queen Mary of England. protection and control over such area. that, so far as is known, there is no oil Mr. GEORGE in two instances, ~ in each In other words, the Court said that if in the marginal sea off the coast of to include extraneous matter. the Federal Government had continually Massachusetts. · I also confess to some Mr. Bow and to include extraneous exercised such dominion, it was insepa knowledge about the distinction between matter. rable from sovereignty, and therefore, res judicata and stare decisis lest my Mr. OsTERTAG and to include an edi the rights and powers of the sovereign brethren from States which were not torial. were paramount in the area. parties to the Supreme Court cases Mr. MASON and to include extraneous I submit that the Supreme Court's de should remind me that determinations matter. cision is the best and soundest authorita of the rights of California, Louisiana, Mr. WESTLAND and to include extrane tive determination of the contest between and Texas are not binding upon, let us ous matter. the States and the Federal Government say, Florida or Oregon. Mr. RADWAN in two -instances and to in this matter. The law suits in the Cali But undoubtedly, the nub of the ques include extraneous matter. fornia, Louisiana, and Texas cases were tion is oil. Mr. KELLEY of Pennsylvania and to argued by eminent and distinguished Geologists and soil experts and pe include recommendations by Mr: Walter constitutional lawyers, and so far as the troleum explorers have assured us that Reuther in regard to the Labor-Manage law is concerned, there can be no further the resources under coastal waters are ment Relations Act of 1947. question as to the supremacy of the Na worth an estimated $40 billions. The Mr. SMITH of Mississippi in four in tional Government over the marginal Supreme Court has held that the title to stances and to include extraneous mat sea and the Continental Shelf. • the land from which this black gold can ter. Since 1946, however, the Congress has be extracted does not belong to the Mr. JONES of Alabama and to include been called upon to change the state of States whose shores are washed by the an editorial. the law by legislative and executive ac waters covering it. Prior to the Su Mr. BoLAND and to include an address tion, and, in effect, reverse the Supreme preme Court decisions, the States which by Hon. THOMAS J. DODD. Court on a basic question of international had legitimately leased tideland areas Mr. HowELL' Concurrent resolution pro mittee on the Judiciary. viding for participation in the Fourth of By Mr. HOPE: July, 1953, observance at Independence Hall, EXECUTIVE COMMUNICATIONS, H . R: .4267. A b111 to permit donation of Philadelphia, Pa.; to the Commit_tee on the 'ETC. commodities under section 416 of the Agri Judiciary. · cultural Act of 1949 without -Tegard to the By Mr. O'NEILL: Under clause 2 of rule XXIV, execu order of priority specified therein; to the H. Res. 191. Resolution creating a select tive communications were taken from Committee on Agriculture. committee to conduct an investigation and the Speaker's table and referred as H. R. 4268. A bill to facilitate the admin study 'of the relative workload at the ship follows: istration of the national forests; to prov.ide yards in the various naval districts of the for the orderly use, improvement, and de United States, in order to determine whether 581. A letter from the Chief Scout Execu velopment thereof; to stabilize the livestock certain proposed reductions in personnel tive, Boy Scouts of America, transmitting industry dependent thereon; and for other are equitable and efficient; to the Committee the 43d Annual Report of the Boy Scouts of -purposes; to the Committee on Agriculture. on Rules. America for the year 1952, pursuant t.o the By Mr. HUNTER: By Mr. RAY: act of .June 15, 1916, entitled "An act to in H. R. 4269. A b1ll to amend section 22 of H. Res. 192. Resolution declaring that the corporate the Boy Scouts of America, and the Agricultural Adjustment Act, to development and maintenance of a strong for other purposes" (H. Doc. No. 112) ; to strengthen its provisions providing for the and well-balanced American merchant ma the Committee on Education and .Labor, and imposition of import quotas on agricultural rine is being hampered and restricted con ordered to beJ>rinted, with illustrations. commodities when imports of such commodi trary to established Government policy; to 582. A letter from the Secretary -of State, ties tend to interfere with price support or the Committee on Merchant Marine and transmitting a draft of proposed legislation other 1Jrograms administered by the Depart Fisheries. entitled "A bill for the relief of Charles J. ment of Agriculture, to transfer its admin Abarno and others"; to the Committee on istration to the United States Department of the Judiciary. Agriculture, and for other purposes; to the PRIVATE BILLS AND RESOLU.TIONS., 583. A letter from the Secretary of the Committee on Agriculture. Under clause 1 of rule XXII, private Army, transmitting a letter from the- Chief By Mr. J'AVITS: bills and resolutions were introduced and of Engineers, United States Army, dated H. R. 4270. A b1ll to amend the Labor Man severally referred as follows: January 23, 1953, submitting a report, to -agement Relations Act of 1947, as amended; gether with accompan)'ing papers on a pre to the Committee on Education and Labor. By Mr. ABBI'IT: liminary examination of central Florida H. R. 4271. A bill to authorize a program of H. R. 4280. A bill for the relief of William waterways, including the St. Johns, Kissim loans and other financial aids to assist in the Branch; to the Committee on the Judiciary. mee, and Oklawaha Rivers, Fla., and other provision of housing for families of moderate H. R. 4281. A b1ll for the relief of Mr. and connecting and adjoining waterways, with a income, and for other purposes; to the Mrs. Thomas V. Compton; to the Committee view to improvement in the interest of navi Committee on 13a:O:king and Currency. on the Judiciary. gation, fiood control, and water conservation, By Mr. JONES of Alabama: By Mr. BAILEY: all authorized 'by the river and "harbor acts H. R. 4272. A bill to'repeal those provisions H. R. 4282. A bill. for the relief of Mrs. approved on August 30, 1935, and on March of the Railroad Retirement Act of 1937 which Drina Sinovcic and Vincence (Vincent) Si 2, 1945; to the Committee on Public Works. reduc.e the amount of a railroad annuity or novcic; to the Committee on the Judiciary. By Mr. DONOV AN: 584. A letter from the clerk, United States pension where the individual or .his spouse is (or on proper application would be) enti H. R. 4283. A bill for the relief of Antonio District Cotirt, 'Territory of Alaska, trans tled to certain insurance benefits under the 'Fernandez; to the Committee on the Judi mitting the interim report of the grand jury ciary. for the Territory of Alaska, Third Division; Social Security Act; to the Committee on to the Committee on Interior· and lnsular 'Interstate and Foreign Commerce. . By Mr. EVINS: By Mr. KEAN: H. R . 4284. A bill for the relief of Amleto Affairs. H. R. 4273. A bill to provld-e that widows of Rambelli; to the Committee on the Judiciary. members of the Armed Forces who die during By Mr. FOGARTY: PUBLIC 'BILLS AND RESOLUTIONS the period of Korean hostilities shall be en H. R. 4285. A bill for the relief of Arthur titled to exhaust their entitlement to edu 13taveley; to the Committee on the Judiciary. Under clause 4 of rule XXII, public cation and training under the Q.I 'bill of By .Mr. KILBURN: bills and resolutions were introduced rights; to the Committee on Veterans' Af H. R. 4286. A bill for the relief of Nicholas and severally Teferred ·as follows: fairs. Steven·GiannDuco!; to the Committee on the By Mr. KEARNS: Judiciary. By"Mr. 'BAILEY: H. R . 4274. A bill to amend the National H. R. 4260. A bill to extend the Federal By Mr. "KKLDAY: Labor Relations Act, as amended, so as to H. R. 4287. A 'bill for the relief of Charlyne old-age -and survivors insurance system to give the States more responsibility and au individuals engaged in the practice of law; Roe Ann Berlanga; to the Committee on the 'thority in labor .m.anagement conciliatory ob Judiciary. to .the Committee- on Ways .and Means. jectives; to the Committee on Education and By Mr. DONOHUE: By Mr. KLEIN: Labor. H. R. 4288. A bill for the relief of Rosario H. R. 4261. A bill to .hldemni~y drivers of 'By Mr. MACK of Illinois: motor vehicles .of th.e postal :servic!') ·against Piacentino; to the · Committee on the Judi H. R. 4275. A bill to provide that a minis ciary. liability for damages arising out of the op ter may exclude frbm gross income that part eration of such ·vehicles in the performance of his compensation which is paid to him in By Mr. LUCAS: of official duties; to the Committee .on the lieu of furnishing him a dwelling house; to H. R. 4289. A bill for the relief of Gene Par Judiciary. the Committee on W.ays and Means. ' nell Taylor; to the Committee on the .Judi H. R. 4262. A bill to establish a Federal By Mr. METCALF: ciary. Commission for the..Phy.sically Handicapped, H. R. 4276. A b1ll to amend the Agriculture By Mr. MORANO: to de.fine its duties, and for 'Other purposes; Act of 1949 ·and for other purposes; to the H. R. 4290. A bill for the relief of Tamara to the Committee on Education and Labor. Committee on Agriculture. "B.nd Nicholai Thkun; to the Committee on ..By Mr. FINO: By Mr. MILLER of Nel:?raska: the Judiciary. H. R. 4263. A bill to amend section 212 (d) H. R. 4277. A bill to provide for the health By Mr. MULTER: of the Immigration and Nationality Act in and protection of the citizens of the United H. R. 4291. A bill for the relief of Binen order to authorize the issuance of im.nligi'a States from harmful chemical additives in Zawiszynski; to the Committee on the Judi tion visas to and the admission of certain pesticides; to the Committee on Interstate ciary. aliens inadmissible under section 212 (a) and Foreign Commerce. By Mr. POWELL: (9) of such act where extenuating .circum By Mr. PHILLIPS: H. R. 4292. A bill for the relief of Clayton Holmes; to the Committee on the Judiciary. stances exist with respect to such inadmis H. R. 4278. A bill to amend section 22 of the Agricultural Adjustment Act, to strengthen By Mr. RHODES of Arizona: sibility; to the .Committee on the Judiciary. its provisions providing for the imposition H. R. 4293. A bill to authorize the Secre H. R. 4264. A bill to amend the lnternal of import quotas on agricultural commod tary of Agriculture to sell certain improve Revenue Code to permit a taxpayer to deduct ities w~en imports of such commodities tend ments on national forest land in Ar.izona to tuition expenses paid by him for the educa to interefere with price support or other the Salt River Valley Water Users Associ-a tion of his children; to. the Committee on programs administere,d by the Department of tion, and for other purposes; to the Com Ways and Means. Agriculture, to transfer its administration mittee on Agriculture. 2362 CONGRESSIONAL RECORD- SENATE March 27. PETITIONS, ETC. . joint resolutions, in which it requested ·On request of· Mr. PoTTER, and by Under clause 1 of rule XXII, petitions t:Qe· concurrence of the Senate: unanimous consent, the subcommittee of and papers were laid on the Clerk's desk H. R. 3180. An act to provide for · the ex the Committee on Interstate and For and referred as follows: emption from taxation of certain tangible eign Commerce investigating waterfront personal property; racketeering and port security, was au 116.. By Mr. HILLELSON: Petition of Frank H. R. 3655. An act to amend the District thorized to meet during the session of J. McCann, and 15 others, urging the Con of Columbia Alcoholic Beverage Control Act the Senate this afternoon. gress of the United States to enact legisla so as to provide for the control of the con tion which will reduce the tax burden caused sumption of alcoholic beverages in certain by the payment of 32 cents out of every clubs in the District of Columbia, and for ORDER OF BUSINESS dollar earned by the average American; to other purposes; the Committee on Ways and Means. H. R. 3853. An act to amend title 18, United Mr. TAFT. Mr.- President, am I cor . 117. By_ Mr. ~TIN of Massachusetts: States Code, entitled "Crimes and Criminal rect in my understanding that the Sen Petition of Harry W. Putnam and sundry Procedure," with respect to continuing the ate is now in executive session, and that residents of Massachusetts urging enactment effectiveness of certain statutory provisions the Senator from Idaho [Mr. WELKER] of H. R. 2446 and H. R . 2447; to the Com until 6 months after the termination of the mittee on Ways and Means. has the floor? national emergency proclaimed by the Presi The PRESIDENT pro tempore. 'The II dent on December 16, 1950; ..... •• 4130. Senator is correct. H. R. An act to amend title V of the Department of Defense Appropriation Act, Mr. TAFT. ·I ask unanimous consent SENATE 1953, so as to permit the continued use of that, without the Senator from Idaho appropriations thereunder to make payments losing the floor, the Senate proceed, as FRIDAY, MARCH 27, 1953 to ARO, Inc., for operation of the Arnold in legislative session, with the matters Engineering Development Center after March which would ordinarily be dealt with in The Senate met in executive session at 31, 1953; the morning hour. 12 o'clock meridian. H. J. Res. 226. Joint resolution to extend until July 1, 1953, the time limitation upon Further, I ask unanimous consent that, The Chaplain, Rev. Frederick Brown the effectiveness of certain statutory provi at the conclusion of the transaction of ~arris, D. D., offered the following sions which but for such time limitation such routine business as may be pre prayer: would be in effect · until 6 months after the sented, the clerk call the nominations 0 Lord of our pilgrim years, the day termination of the national emergency pro on the Executive Calendar other than returns and brings us the round of its claimed on December 16, 1950; and the nomination of Mr. Bohlen, which is H. J. Res. 229. Joint resolution authorizing under consideration. ". concerns and duties. As in Thy sight the Architect of the Capitol to permit cer Thy servants serve here in posts of high tain temporary. construction work on the The PRESIDENT pro tempore. With public office, make them solemnly con Capitol Grounds tn connection with the erec out objection, it is so ordered. scious that their attitudes, their words, tion of a building on priv~tely owned prop and their acts are not just their own. erty adjacent thereto. EXECUTIVE COMMUNICATIONS, but that they go out from this Chamber, ETC . . set as a light on a hill, to influence and LEAVES OF ABSENCE to mold the whole structure of human The PRESIDENT pro tempore laid be relationships around this sad and weary Mr. TAFT. Mr. President, I ask unani fore the Senate the following letters, world. Help those who here stand as mous consent that the Senator from Ver which were referred as indicated: the representatives of freedom in ·an mont [Mr. AIKEN] be excused from at CHARLES J. ABARNO AND OTHERS things to be masters of themselves that tendance on the session of the Senate A letter from the Secretary· of State, trans they may be the servants of others. In today, in ord~r to attend a funeral. mitting a draft of proposed legislation for these . times of tension and strain pre The PRESIDENT pro tempore. With the relief of Charles J. Abarno and others serve us from minding or magnifying out objection, the leave is granted. (with an accompanying paper); to the Com little slights and stings, or giving them. Mr. GILLETTE. Mr. President, be mittee on the Judiciary. Keep us calm in temper, clear in mind, cause I wfll be absent on official business WAIVING REQUffiEMENT OF PERFORMANCE AND sound of heart, in spite of ingratitude, of the Senate on Monday, Tuesday, PAYMENT BONDS IN CONNECTION WITH CER meanness, or even treachery. In these Wednesday, and Thursday of next week, TAIN COAST GUARD CONTRACTS crucial and creative days, enable us, we I ask unanimous consent to be excused A letter from the Acting Secretary of the pray Thee, to perform faithfully and well from attendance on the sessions of the Treasury, transmitting a draft of proposed Senate on those days. legislation to _amend .the act of April 29, 1941, what Thou dost require, even to do justly, to authorize the waiving of the requirement · to love mercy, and to walk humbly with The PRESIDENT pro tempore. With-. of performance and payment bonds in con Thee our God. In the Redeemer's name. out objection, the leave is granted. . nection with certain Coast Guard contracts Amen. • Mr. MAGNUSON. Mr. President, by (with an accompanying paper); to the Com- direction of the Committee on Inter mittee on Armed Services. · THE JOURNAL . state and Foreign Commerce I ask unani PUBLICATIONS ENTITLED "PRODUCTION OF ELEC• mous consent that, after today, I may. On request of Mr. TAFT, and by unani . TRIC ENERGY, CAPACITY OF GENERATING be excused from attending the sessions of PLANTS, 1951". AND "CONSUMPTION:. OF ~Ul',;L mous consent, the reading of the Journal the Senate for -the next 10 days, for the FOR PRODUCTION ·OF ELECTRIC ENERGY, 1951" of the proceedings of Wednesday, March purpose of proceeding to the west coast A letter from the Chairman, Federal Power 25, 1953, was dispensed with. on a waterfront investigation. Commission, transmitting, for the informa The PRESIDENT pro tempore. With tion of the Senate, copies of that Commis MESSAGES FROM THE PRESIDENT out objection, the leave is granted. sion's newly issued publications entitled On his own request, and by unanimous "Production of Electric Energy, Capacity of Messages in writing from the Presi Generating Plants, 1951" and "Consumption consent, Mr. ScHOEPPEL was excused of Fuel for Production of Electric Energy, dent of the United States submitting from attendance upon the sessions of the nominations were communicated to the 1951" (with accompanying documents); to Senate on Monday, Tuesday, Wednes the Committee on Interstate and Foreign Senate by Mr. Miller, one of his secre Commerce. taries. day, and Thursday of next week because of official bu15iness incident to the holding SUSPENSION OF DEPORTATION OF CERTAIN of hearings by a subcommittee of the Se ALIENS MESSAGE FROM THE HOUSE lect Small Business Committee. A .letter from the Commissioner of Im A message from the House of Repre migration and Naturalization, Department of sentatives, by Mr. Maurer, its reading Justice, withdrawing the names of sundry clerk, announced that the House had COMMITI'EE MEETINGS DURING aliens whose deportation had beep. suspended SENATE SESSION from lists heretofore transmitted to the Sen passed the bill to continue the ate (with accompanying papers); to the effectiveness of the Missing Persons Act, On request of Mr. TAFT, and by unani Committee on the Judiciary. as amended and extended, until July 1. mous consent, the subcommittee of the 1954, with an amendment, in which it Committee on ·the Judiciary dealing with REPOR'J; o~ BoY. ScouTS oF AMERicA ~equested the concurrence of the Senate. A letter from the chief Scout executive, constitutional amendments was author Boy Scouts of America, New York, N. Y., The message also announced that the ized to meet dUfing the session of· the transmitting, pursuant to law, a report of House had passed the follow_ing bills and Sebat¢ today. · the Boy Scouts of Americ~ fo~ the year 1962