1957. CONGRESSIONAL RECORD - SENATE 5635 Bob Lee Baker, Mendon, Mich., in place of William R. Burleson, Marion, N. C., ln place James D. Wheeler, Jr., Garland, Tex., in M. C. Travis, removed. of J. A. Finley, deceased. place of F. B. Crush, resigned. Guy R. Van Nortwick, Pentwater, Mich., NORTH DAKOTA Roland W. Davie, Grand Prairie, Tex., in in place of P. N. O'Brien, removed. place of E. L. Kerr, deceased. Benedict A. Hunsanger, Ruth, Mich., in Isaac J. Iverson, Fairdale, N. Dak., in place John C. Sumner, Itasca, Tex., in place of place of A. Zinger, retired. of Edward Lian, retired. J.C. Martin, retired. Clifton J. Demerest, West Branch, Mich., OHIO Clarence W. Wagner, Round Top, Tex., in in place of R. M. Gillies, retired. Floyd C. Smothers, Fostoria, Ohio, in place place of M. L. M. Smith, resigned. MINNESOTA of L. B. Anderson, retired. UTAH James M. Hugues, Collegeville, Minn., in Harold R. Sherk, Genoa, Ohio, in place of Dean L. Adams, Loa, Utah, in place of N. M. place of M. B. Diekmann, resigned. B. J. Chambers, retired. Ekker, resigned. Arthur L. Erickson, Hastings, Minn., in Hazel C. Kelly, Navarre, Ohio, in place of VERMONT M. G. Swaner, retired. place of L.B. Matsch, retired. Gordon F. W. Eaves, Danby, Vt., in place of Leo W. McDonough, Kellogg, Minn., in OKLAHOMA E. P. Kelley, deceased. place of C. G. T. Lydon, retired. Carl R. Junghanns, Medford, Okla., in place VIBGINIA of I. E. Armstrong, deceased. :MISSOURI William E. Ewers, Woodberry Forest, Va., Virginia L. Ward, Bonne Terre, Mo., in PENNSYLVANIA in place of G. W. Marchant, resigned. place of W. H. Ward, retired. Georgia A. Oplinger, Adamsburg, Pa., in Thomas C. Wilkins, Wytheville, Va., in John C. Ferguson, Willow Springs, Mo., in place of K. L. Kline, deceased. place of G·. B. Cassell, retired. place of J. W. Brown, Jr., resigned. Rita C. Steigerwalt, Andreas, Pa., in place of I. L. German, deceased. NEBRASKA George E. Anderson, Kirkland, Wash., in Naomi A. Mcconkey, Blue Hill, Nebr., in Henry J. Fabry, Carrolltown, Pa., in place place of Harvey Lewis, retired. place of F. L. Peisiger, resigned. of 0. F. Stolz, retired. Henry Ralph Graber, Collegeville, Pa., in Grace G. Kallenberger, Marlin, Wash., in John Boyd Page, Fairbury, Nebr., in place place of Hans Christoffersen, deceased. of H. S. Yeakle, retired. place of C. W. Scheuren, retired. Frank L. Bender, Enola, Pa., in place of Harlan M. Shepardson, Toledo, Wash., in NEW HAMPSHffiE G. W. Fordney, resigned. place of D. M. McDowell, retired. Warren F. Metcalf, Tilton, N. H., in place of George A. Wildauer, Falls Creek, Pa., in WEST VIRGINIA F. M. Boynton, retired. · place of J. H. Sinclair, transferred. Anna Jean Duncan, Cannelton, W. Va., in NEW JERSEY Edith M. Isakson, Greenock, Pa., in place of place of Roy Palmer, resigned. J. E. Haidle, deceased. Charles Manning Smith, Charles Town, Robert W. Sanders, Middlesex, N. J., in Gregg L. Johnson, Lewisburg, Pa., in place place of F. H. Moran, retired. W. Va., in place of T. T. Perry, Jr., retired. of C. F. Dunkle, retired. Alva O. Bailes, Clay, W. Va., in place of John D. Roosa, Ramsey, N. J., in place of Walter J. Gardner, Rockwood, Pa., in place V. J. McCall, deceased. Marion Reed, removed. • of E. L. Leaphart, retired. Fred L. Byrnside, Danville, W. Va., in place John Stothers, Rutherford, N. J., in place Earl C. Glotfelty, Salisbury, Pa., in place of of S. D. Ely, retired. of M. C. Ballard, retired. D. H. Broadwater, resigned. Jesse J. Martin, Ethel, W. Va., in place of NEW YORK PUERTO RICO C. T. Lee, removed. Katherine C. Bittner, Shelter Island Kenneth B. Crockett, Matewan, W. Va., in Heights, N. Y., in place of M. P. McGayhey, Pablo Pedraza, Barranquitas, P. R., in place of Ricardo Pagan, retired. place of C. W. Overstreet, retired. retired. Dorothy L. Porterfield, Shenandoah Junc­ Bruno Gatti, Amawalk, N. Y., in place of SOUTH DAKOTA tion, W. Va., in place of W. H. Dean, resigned. Antoinette Rieger, resigned. Merrill G. Peterson, Alpena, S. Dak., in Erma J. Compton, Volga, W. Va., in place David Samuel Farmer, Cornwall-on-the­ place of L. E. Smith, retired. of A. C. Lambert, deceased. Hudson, N. Y., in place of L. A. Fanning, Milton A. Williams, Lead, S. Dak., in place WISCONSIN resigned. of E. J. Green, deceased. Oscar V. Newkirk, Kingston, N. Y., in place Howard J. Wood, Sioux Falls, S. Dak., in Charles C. Robb, Arena, Wis., in place of of W. R. Kraft, deceased. place of J. A. Crowley, deceased. J. L. Quigley, deceased. Leslie Duncan Olmsted, Pleasantville, N. Y., Robert T. Burns, Hollandale, Wis., in place in place of J. J. Moroney, removed. TENNESSEE of L. E. DeMuth, retired. Frederick Burton Fisher, ·whiteface, N. Y., Frank Melson, Lutts, Tenn., in place of Robert Addison Hotchkiss, Independence, in place of H. W. Haynes, retired. M. I. Lindsay, transferred. Wis., in place of Simon Skroch, retired. Justin J. Martin, Willard, N. Y., in place Mary N. Montgomery, Seymour, Tenn., in George M. Hetherington, La Crosse, Wis., in of W. D. Gallagher, deceased. place of B. L. Sharp, retired. place of 0. F. Paulson, retired. Roger A. Shanks, Merrimac, Wis., in place NORTH CAROLINA TEXAS of Grace A. Johnson, retired. Jay T. Baker, Dallas, N. C., in place of Benjamin W. Pearce, Center, Tex., in place Keith G. Cairns, Mount Hope, Wis., in place G. L. Friday, resigned. of S. E. Burns, deceased. of E. B. Morse, deceased.

EXTENSIONS OF REMARKS

Strengthening of Principle of Sanctity of I spoke on fair treatment of business Johnson conference be likewise printed. Contracts at home and abroad-fair and equal The company has done a great job in treatment under the law. Latin America, and our good neighbors EXTENSION OF REMARKS I presented what I called an eco­ to the south have likewise been friendly OF nqmic bill of rights for the protection hosts and customers to this great com­ of foreign capital against confiscation, pany. HON. ALEXANDER WILEY for example. There being no objection, the address, OF WISCONSIN I ask unanimous consent that the ad­ statement, and article were ordered to be IN THE SENATE OF THE dress delivered by me before the S. C. printed in the RECORD, as follows: Friday, April 12, 1957 Johnson Co. banquet be printed in the CONGRESSIONAL RECORD. STATEMENT BY SENATOR WILEY Mr. WILEY. Mr. President, the other Soon, Congress will be taking up the 1958 night I had the privilege of addressing I ask that it be preceded by two items: mutual security bill. one of the great business organizations First, the text of an .amplifying state­ Every study-the Fairless Commission, the of my State. ment which I have prepared on the sub­ Eric Johnston report-which has been made In Racine, I spoke before the S. C. ject. In it, I have referred to a related in advance of this bill-emphasize this fact: Johnson Co.-famous for its product, issue, namely, the principle of arbitra­ "The world needs more investment of pri­ Johnson wax. The company had brought tion and conciliation in the instance of vate-I emphasize private--capital. Private in 65 of its representatives from 30 coun­ economic and other disputes; and enterprise should do the job of building up tries all over the world. second, I ask that an article by Bernardo underdeveloped economies especially, rather I spoke on a theme basic to this Estes, editor of Sindicato de Prensa than expecting simply government-to-gov­ shrunken globe of ours. Latino Americana, describing the S. C. ernment aid." 5636 CONGRESSIONAL RECORD - SENATE

SENATOR WILEY'S EFFORTS TO PROMOTE FAVOR• Swiss Government, the United States makes German nor Swiss nor American private ABLE ECONOMIC CLIMATE itself the sole judge of right and wrong." interests. And so, I have sought throughout the Earlier, the Times article, by George H. I am concerned with but one interest-­ postwar ~ra to encourage private enterprise Morison, reported: one interest above all, and that is, the in­ to do this investment job. "Owing to the confiscation on a vast scale terest of the United States Government­ I have sought to help contribute to a of French private property in Egypt the In­ the interest of 170 million Americans. favorable economic climate throughout the terhandel case had become a subject of fierce I am concerned with the respect in which world-favorable to private enterprises' controversy in the Paris press." we are held by the peoples of the world. operation. I AM NOT PASSING JUDGMENT ON CASES, ONLY We are the beacon. We are the lighthouse, POINTING OUT SIDE EFFECTS and we must relnain so. Fair play must DANGER IN EGYPTIAN NATIONALIZATION still be our creed and our deed if the world We cannot have such a climate if let us Now, let me state that: is_to continue to respect us. 1. I am not in the slightest passing judg­ say, a government arbitrarily confiscates pri­ MY QUESTION TO THE EXECUTIVE BRANCH vate property-foreign or domestic. ment on the Interhandel case itself. The Recent Egyptian nationalization of British case is too involved; besides, it has been And so, I should like to state one simple and French and other -property is a case in handled, · and is being handled basically by proposition: I state it, however, respectfully point-an illustration of harmful tendencies the executive and judicial branches. in the form of an open question to our Sec­ at work-harmful to investors' confidence 2. I am simply pointing out how a side retary of Sta:te and to our Attorney General. throughout the world. effect of one case may significantly involve . I ask: "Would not the United States Gov­ very different cases, e. g., Egyptian nation­ ernment be on firmer overall grounds--in A FINDING IN 35 YEARS OF LAW. EXPERIENCE alization. The side effect is possible dis­ terms of restoring the vitaUty of arbitration Mr. President, having been a practicing couragement of many future arbitration treaties-if. it were to agree to arbitration attorney for more than 35 yea.rs before efforts. and conciliation of this Interha.ndel dis­ coming to the Senate, I have stressed 3. I personally have a dual responsibillty. pute?" throughout a lifetime this fact: The strength In the first place, I am senior Republican on The Swiss Government has asked for ar­ of America is the rule of law. the Judiciary Committee which is handling bitration. The State Department, for what Yes, the strength of America is its respect the complex question of alien property. it deems good and proper legal reasons, has of the sanctity of a private contract, the In the second place, I am Senior Republi­ turned the Swiss Government down. · sanctity of private property. And that, of can on the Senate Foreign Relations Com­ This case has, of course, been fought up course, includes the sanctity of the right of mittee which concerns itself with mutual and down through the United States courts. appeal against alleged unfair treatment. ~ecurity, worldwide economic relations, So far as I am concerned, the United Unfortunately, too many countries, these friendship among the nations, etc. It is our States courts may be completely right in days, have the notion that a contract can be Foreign Relations Committee which review3 what they have repeatedly held. I do not broken by one side-completely arbitrarily. all treaties. It is our committee which ap­ dispute their decisions in the slightest. I But the great Anglo-Saxon tradition holds proved the treaty of February 16, 1931, un­ have the highest regard for our judicial that a man's word must be as good as his der which every dispute arising between the branch. bond, and his writtert contract, particularly, contracting parties shall, when ordinary SHOULD WE· NOT ADVANCE WORLD RELATIONS BY must be faithfully kept-in letter and in diplomatic proceedings have failed, be sub­ spirit. ARBITRATION? mitted to arbitration or conciliation, as the But I ask this question: Would it not be LET WORLD SEE WISDOM OF ANGLO-SAXON contracting parties may, at the time decide. a sound contribution to international rela­ CONCEPT ARE 31 UNITED STATES ARBITRATION TREATIES TO tions if the United States Government were And so, I told the representatives of the BE DEAD LETTERS? graciously to say, in effect, "Gentlemen o{ S. C. Johnson Co., that I hop~ that the I ask now: "Is the 1931 Arbitration Treaty Switzerland, we Americans may believe our· various foreign countries in which they are to be relegated to a dead letter?" courts have held 106 percent soundly. But established, will come to recognize the wis­ I point out that, all too regrettably, the we believe so much in the rule of law; we dom of this Anglo-:Saxon concept. · historical facts are these: a recent column on believe so much in the principle of adjudi­ Too many countries are toying with con­ the editorial page of cation of disputes between nations, that we fiscation of private property. Too many factually pointed out that, unfortunately, are willing to see the process of conciliation countries have gotten the concept that men dozens of arbitration and conciliation trea­ and arbitration· followed." should rule, rather than the law. ties, solemnly signed by the United States In my judgment, if the United States were LEADING FRENCH PAPER CRITICIZED UNITED have likewise not been utilized in the to do so, and to do so expeditiously (because STATES slightest. I certainly do not want unreasonable delay), Is this unwholesome trend of ignoring 31 then America might make a most significant What brought this situation to mind contribution to international law. especially was this fact : or more treaties to be continued now? Do not I, as former Chairman of the Foreign Re­ I am commenting in this manner because The New York Times of Monday, April 8, I feel that the principle of arbitration can carried a significant report from the French lations Committee, have the responsibility to raise this issue now so that it is care­ and should be applied in a great many pend­ press about one particular case in which is ing disputes throughout the world. charged that it is the United States which fully considered in all its implications? is at fault in possibly undermining sound I believe I do have this responsibility. HOW TO DEFINE "DOMESTIC JURISDICTION" economic relations among the nations. I HA VE COME TO NO DECISION YET ON ANY Of course, as the State Department has. This Times report relates two widely sep· PROPERTY RETURN noted, we rightly exclude from our arbitra­ arated problems: Let this further fact be understood very tion treaties any obligation to conciliate or (a) The long-litigated and complex dis­ clearly: I am not commenting now at all arbitrate a matter within "domestic juris­ pute as regards the title to shares of the on the issue of any possible return of alien diction." General Aniline & Film Corp. (the Inter­ property. That is a vast, complex issue in But obviously, if "domestic jurisdiction" handel case) , and itself. I · am commenting today and simply is interpreted very broadly by ourselves and (b) Trying to resolve the problem of Egyp­ raising questions about the general need for other powers, then probably no dispute tian nationalization. arbitration in today's world where business whatsoever will ever be arbitrated. Why? These cases-Interhandel and Egypt-­ confidence has far too often been shattered. Because everything might be reg~rded as obviously differ from one another tremen­ So far as any possible alien property re­ "domestic." dously. turn is concerned, I feel that I am still in THE BIG ISSUE: AMERICA' S INTEREST SHOULD DISPUTES LIKE THIS BE ARBITRATED? a quasi-judicial position on the Senate Ju­ cliciary Committee. I am now studying the Here I leave the case except for one addi­ But there is at least one common thread record of the hearings. · · tional point: between them, as noted by some French and Some individuals _may argue that "to ar­ I have been asked repeatedly by newspa­ United States observers. It is the common bitrate this Interhandel dispute would help thread: per reporters about my position on this or that alien property bill. I have told them Private Interest A, or harm Interest B, or "Should not governments adjudicate dis· the facts: I have not made and would not help Interest C." putes of this nature, if necessary before an consider making any commitment whatso­ But that is not the question. international tribunal?" ever, as regards the various forms of the I am urging a principle, not any private Thus, the Times referred to a widely re­ pending legislation. · interest. ported article entitled "A Regrettable Refusal . . I represent no interest. I speak for no of International Arbitration." It was printed I AM CONCERNED SOLELY WITH PUBLIC I~TEREST interest. I am interested in no interest in the leading journal of finance in Paris, I have stated that I want to study the except-if you can call it that--the interest L' Information. The New York Times write­ record-and only thereafter will I come to of the American Government and the Amer­ up states the author criticized "the American a decision. for or against this or that bill. ican people-leaders of the world in this interpretation of the Washington accord." Obviously, on the alien property return atomic age. The author is quoted as declaring that at issue, a great many private interests ·are at I say, let my Government weigh this In­ stake in the Interhandel dispute "was the work-in competition with one another. terhandel question carefully once again in question of good ·f.aith among the nations. I am not concerned with these private the light of the Egyptian and other danger­ By refusing to arbitrate as requested by the interests in any way, shape, or form, neither ous situations. 1957 CONGRESSIONAL . RECORD- SENATE 5637 Let our Government decide not simply on sion, in chemical and biological warfare; this But these figures are only a drop in the the legal technicalities, as important as they age of danger of a Pearl Harbor-like blitz at­ bucket compared to what the free world obviously are, but on the many possible sl,-ie tack. really needs from us. effects and on the psychological· impact 2. Secondly, we need to. continue to use It will bring infinitely vaster quantities, throughout-the world-the impact o! what- the avenue of a strong system o! alliances. provided it can generate enough of its own ever we may finally decide. · Our purpose is . to further the unity and purchasing power. That means, of course, EACH SOVEREIGN BRANCK MUST CAREFULLY well-being of the free world. Your United through the sale of its own goods to others DECIDE States is now the moving force in a sound and to ourselves. interlocking system of pacts and agreements I do not in any way tell another sovereigq Thirdly, increased world trade helps to with 45 other nations. I refer to the Rio make foreign lands far less vulnerable, than branch of Government what to do. But I Pact, Anzus Pact, NATO Pact, SEATO Pact, do urge the State Department to think this they might otherwise be, to Communist question through once again-with the United States-Nationalist China Pact, United penetration. broadest public interest in mind-not any States-Korean Treaty, and so forth. Yes, prosperous foreign economics mean private interest--but solely this public inter­ 3. Expansion of the free world's scientific more stability, less \lnrest, less yearning est--a sounder, more stable world-a world arid technical horizons. among underprivileged masses for a radical in which private enterprise will be protected By this avenue, I mean more sound tech­ change. I mean a change such as the Reds through due process of law. nical aid, making available the peaceful offer-with their phony cure-alls for eco­ There follows now the text of my address fruits of atomic energy, more experiments nomic llls-cure-alls which are far worse as it was prepared for delivery in Racine. in harnessing the energy of the sun, and than the economic illness, itself. other scientific advances. THIRTY BILLIONS OVERSEAS CAN BE INCREASED 4. Expansion of the !ree world's business SENA.TOR WILEY SAYS ECONOMIC BILL OF and commercial horizons. The other day, I commented on the Sen­ RIGHTS SHOULD BE PROCLAIMED AND OB· That means more trade, beneficial, on a ate fioor regarding the very considerable SERVED BY FOREIGN LANDS So AS To ATTRACT two-way street; no dumping, but sound, mu­ amount of American investment already UNITED STATES CAPITAL AND IMPROVE STAND• tually helpful trade. overseas. ARDS OF LIVING And I mean investment. It means mere All told, around $30 billion of American (Address by Hon. ALEXANDER WILEY, Repub­ pouring forth of American capital, risk cap­ money is now invested throughout the lican, of Wisconsin, senior Republican, ital, into for_eign manufacturing, foreign dis­ world-in plants and refineries and mines Foreign Relations Committee, at S. C. tribution outlets, foreign advertising (to help and stores, and yes, in stock and bond port­ Johnson Co. banquet, Racine, Wis., April 4, increase consumption and increase !amiliar.:. folios. 1957) ity with quality-name· brands), foreign min­ In 1956 $3 billion more were added. That is a huge sum. But I say that it I am delighted to join in this the first in­ eral deve_lopment, sound foreign equities­ stocks a:nd bonds. could have been larger still, if more Ameri­ ternational conference sponsored by your can investors were satisfied that the fruits outstanding company. I emphasize risk capital-investors' capital willing to take chances in return for the pos­ ot foreign inveetment compensate for the I can well appreciate the tremendous considerable risks of foreign investment. amount of arranging and preparation that sibility of a fair return on its investment. OBSTACLES TO FOREIGN INVESTMENT went into this event. S. C. JOHNSON CO. DEMONSTRATES SOUND I know that I speak for representatives of BUILDING OF MARKETS I need not tell you in detail, my !riends, your overseas subsidiaries and distributors, And I emphasize the concept "sound." who work abroad, that in many lands, pri­ as well as for our attending State and For­ Why? Because an unsound approach to for­ vate enterprise does not exist, as we know it. eign dignitaries, in thanking you for bring­ eign investment can be proven utterly self­ There are a variety of historical, cultural, ing this conference· to its rightful home­ defeating. economic and political facts which account Racine . . This is but another indication of I'm delighted to say that the S. C. Johnson for that condition, but it is a plain fact. your forward-moving and civic-minded Co. is one of our most inspiring examples of I need not tell you that even where private spirit. sound, step-by-step building of foreign mar­ enterprise is nominally free, there tend to be As alert b.usinessmen seeking expanded kets.. all sorts of governmental restrictions on sales abr~ad of top products_. you are under:­ foreign investment. I congratulate you gentlemen on your standably concerned_ o.ver what lies ahead I need not remind you that widespread for international business? many achievements to date. -infiation of currencies is one of the most May I say, at the outset, that in my judg­ In serving your own well-being, in serving serious problems faced, in this respect. An ment, you look out on a mighty bright the private good, you have simultaneously American may trade his goods, expecting to horizon. · served the public good. get a rate of, say, 20 units of a foreign cur­ Let's take a. look at the evidence-abun­ Your efforts have well supplemented the rency to the dollar. The American may find, dant evidence-for optimism. economic efforts of your United States Gov­ however, that by the time, the transaction is ernment: efforts to further world prosperity AMERICA'S TOP GOALS completed, he is indeed getting 20 units for and higher standards of living. the dollar, but the currency has so seriously But let's first ask, as we go into the mid­ lost its purchasing power, that the real value way mark of 1957, what aims are we working UNITED STATES HAS THREE INTERESTS IN TRADE EXPANSION of. the currency is now only 50 to the dollar. for? What does our businessman look for? Such tnfiation most often is not planned What ls our administration working toward? Of course, some people may ask: What does the United States get out of trade expansion? that way; it just happens as a consequence In essence, the goals are the same: of a variety of regrettable conditions. 1. First of all, we want peace and pros- She gets, as you well know, three major bene­ fits: In any event, !oreign governments have a perity for America. · right, within limits, to do as they please 2. Secondly, we want peace and prosperity First of all, increased trade is steadily within their own borders. We Americans do for our fellow men everywhere. giving us access to raw materials and the other products that we need. not propose to try to dictate to anybody how These are fundamental aims, and seem­ they should pr·oceed. ingly simple. However, when we take a real And who would dispute our growing needs look at world events today, we see it's a long, for raw materials as our industrial activity OUR FRANK ADVICE TO FOREIGN FRIENDS hard road to peace and prosperity. Ahd it is reaches capacity limits- But we do say, in friendship and in frank­ composed o·f many avenues. A gross national product of $430 billion. ness to our friendly neighborlands, "lf you FOUR AVENUES TO A BRIGHTER TOMORROW Personal income over $330 billion. will provide a favorable climate for American Employment up to 66 million people. investment, for American manufacturing In the c~urse of these remarks, tonight I These .facts show higher industrialization and distribution and advertising and sales, shall mention but one such avenue in detail: we believe that you will profit handsomely. That of sound international investment. levels; And this in turn means greater im­ ports of primary goods. What would we do We believe that if you will give us anything But there are other avenues-all of which like a fair opportunity to earn reasonably on converge on the highroad to peace and without outside sources of iron-ore concen­ trates, nonferrous metals, uranium, and our money, that it is you who will benefit prosperity. even more than we. Here they are: many other items? "Because, after all, the gre.atest market in 1. First o! all, invincible American ·secondly, increased trade means new mar­ kets for our own finished goods. New for­ the world is back home, in America itself. , strength-diplomatic, military, economic, There are almost unlimited opportunities for spiritual strength-for we are the guardians, eign demands are created for American­ produced products from our farms, mines, investment in the United States. It may not the trustees of the greatest values <>f the pay us to go abroad, therefore, unless we are human race. and factories. Again, our workers are fur­ ther assured of full employment. assured a !air break." " Ji>ERILS OF THE Al;Jt-ATOMIC AGE Our export activity over the past year is an You and I know that, very frankly, in many And we dare. not be anything but invincible indicator !or the future 1 1956 merchandise foreign lands the peoples do not enjoy the in this air-atomic age. I mean this age of exports totaled almost $3 billion greater than same sort of political freedoms that we do. the shrunken globe; this age of promise .and in 1955.. Machinery exports rose about 24 But again, we definitely do not propose yet o! . peril, fanta,stic peaceful develop­ percent, with iron and steel products and to dictate to any foreign land what it should ments, and almost equally fantastic Q.evel­ chemicals making up about one-third of the do inside its own territory. We are good opments in nuclear warfare, in jet propul- $3 billion increase. neighbors, not meddlers, not "know-it-alls." 5638 CONGRESSIONAL RECORD - SENATE April 12 ECONOMIC BILL OF RIGHTS FOR FOREIGNERS I will only say this: ternational conference during the same time If, however, a foreign governme~t maY. not While reserving the right to stand up for that Pan American Week is being celebrated believe in a political bill of rights for its the livelihood of a hard-hit American indus­ in the Americas. For this company, which people, then at least we ask, let there be an try on a taritY issue, the United States has is best known for its wax products in Latin economic bill of rights .for foreign invest­ wisely initiated positive measures to improve America, has done much to make friends for ment. And let that economic bill of rights its economic ties with other nations. itself and United States businessmen, in gen­ be observed in letter and spirit. Let's note three means: eral, in the countries where they maint ain What does that mean? It means- The Trade Agreements Extension Act of operations. (a) A generally fair break for the foreigner 1955 instituted a "staged reduction" of While the Ambassadors of 19 Latin Ameri­ under the law, and in the law courts of the tariffs in accord with other nations. And can countries were touring the State of Cali­ foreign lands. subsequently in 1956, we concluded recipro­ fornia under the auspices of the Organization (b) It means a strong. effort to maintain cal-trade agreements with 21 other coun­ of American States, here in the State of Wis­ the purchasing value of a sound currency, tries designed to bring us economically closer ccnsin the Johnson people were holding their rather than to indulge in loose fiscal prac­ to nations of the free world. first international conference. tices. Secondly, the Customs Simplification Act At this conference were ·some 65 of the ( c) It means a minimum of exchange re­ of 1956 was enacted to help reduce inexcusa­ company's representatives from the 30 coun­ strictions (to the extent that fiscal -<:ondi-· ble delays and inetHciency in handling im· tries of the world where Johnson operates. tions will permit). ports. Of importance to this writer was the fact (d) It means no expropriation of foreign · On a third front, we are participating in that the company is represented in Argentina, private property. (Or, if the· very worst several major institutions designed to aug­ Cuba, Ecuador, Mexico, Panama, Peru, Puerto comes to the worst, fair and prompt .com­ ment trade, promote the sound economic Rico, and in Venezuela. pensation for such expropriation.) development of member nations, and stimu. In talking with the men who run the John· ( e) It means fr.eedom from exce5sive taxa­ late private investment. son operations in each of these Latin Ameri­ tion, from harassing Governme;nt restric­ Most of you are familiar with the activities can countries it was a delight to hear that tions and Government interference. of the Export-Import Bank, International here was another big United States business (f) It means minimal limitations as re­ Bank for Reconstruction and Development, that was conducting itself and its business in 'gards reasonable return of foreign earnings International Monetary Fund, International the republics south of the United States to the United States, return of interest a'nd Finance Corporation. border in the same manner that the people dividends. (And, in stages, return 'of at I shall not go into further detail on the of the United States would expect the Latin least part of the principal of the original major problems of our foreign-trade system. American businesses and businessmen to investment.) · · I am sure that Herb Prochnow, as a banker conduct themselves ·in the United States. These, then, are a few points in ·a foreign and as former Deputy Under Secretary for It was wonderful to hear that aiready the economic bill of rights. Economic Affairs, can do a much better job company was doing as much of its business Now, my friends, let' me say this-in all in analyzing the ins and outs of tariffs, buying and manufacturing in the Latin fairness: I am fully aware that many foreign quotas, and other restrictions which you no American countries as they found their mar­ economies are in comparatively weak condi­ doubt face in your own operations. kets increasing. A plant has been in opera­ tion. CONCLUSION tion . in Mexico for some time now, another I am fully aware that many foreign lands I,n. conclusion, may I say, my friends, that plant is being built in Venezuela. While he may not be able to permit the remittance of the future of mankind does depend on the is waiting for his own plant in Venezuela to as much foreign earnings as we would like, be completed, the manager of the Venezuela or of the original principal as fast as we answer to this question. "Will we effectively fulfill the responsibil­ branch told me that he is buying bis products might desire for investment. And so, I think for sale in Venezuela from the company's thf!.t reasonable compromises can and should ities for preserving wdrld. peace and pros­ perity that our strength and position have .branch in Mexico. be worked out. ! · ' · delegated to us" · When questioned separately, the managers WE MUST NOT BE OVERCRITIC:AL The answer must be "Yes." I have faith it in each country revealed that they employed We Americans are blessed. We have such will be "Yes." only local help, bought every;thing they could great wealth, that it is often hard for some America can look toward new international locally such as cartons, labels, other pack­ of us who have not been outside our bo1·ders horizons, horizons signaling greater economic aging and opera.tive 'requirements. They used to realize how meager are the financial re­ benefits for our own children and those of the local newspapers, plus radio and televi­ sources of many foreign lands, especially one­ our foreign brethren. And only then will sion where it was available and were doing crop lands or one-mineral lands. Most of international peace and security become, as -everything possible to become a part of the such countries are trying to diversify, but it they must, a lasting reality. community and country in which they oper­ is not a quick or easy task-. ated. The Johnson Co. has found that their good I want us to be sympathetic, therefore. I FOLLOWING THE GOLDEN RULE want us to be understanding. I definitely conduct and manners in the countries where don't want us to be overcritical of any for­ Then follows the text of the Latin Amer­ they manufactured, packaged, and sold their eign government or economy. I. want us to ican press writeup to which I have earlier products has paid off in good business for put ourselves in the other person's shoes. referred. their enterprise. This is a lesson that a few This article makes the good point that other United States businesses in Latin ACCOMMODATION NECESSARY, ADAPTATION American businesses should act in Latin America could do well to learn and practice. HELPFUL America on the same high level that we For over 10 years now, this writer has been The s. c. Johnson Co. has i::hown how it would expect a -foreign business to operate commenting on the fact that if United States can accommodate to many di{l'erent condi­ in the United States. businessmen and tourists would practice the tions in many foreign lands. The point is well taken. same good manners in Latin American coun­ It has proven its ability to adapt, to work So, too, however, I say, in all friendship tries as they do in their own communities the out reasonable formulas, so that both the to our good neighbors, this fact: Our Latin reactions they receive would be surprisingly company can prosper, and the foreign gov­ American neighbor lands should seek to fol­ different in wa~mtl'1 and reception. What er.p.ment and people will rightly feel that low the same high law standards in their most fail to realize is that in the names of they, too, are benefiting. countries that they would want us to fol­ North America, Central America, and South This is the sort of action which we need _low toward their operations in the United America there always appears the one big in this world. States. Let them treat our capital fairly. important word-America. The peoples of We can't and ·won't and don't believe in Let us treat their capital, or any other for­ Latin America think of themselves as Ameri­ making over the world in America's own eign capital, fairly. · .cans too. image. Let each nation's laws be respected. When a company like Johnson & Son make Each people is entitled to its own destiny, Let each nation seek to elevate its laws it a policy to operate on. this understanding its own self-chosen way of life. . to the highest possible level, including their conduct just does not benefit their own We like ours, but we won't try to force it faithful observance and enforcement of business interests or the interests of the local on others. Soviet Russia's way--dictation­ those laws. · people who participate in their activity­ is not our way. Let us, in effect, follow the golden rule­ they are rendering a great servi~e to coun­ ·tries in which they operate and the United THREE STEPS TO ADAPT TO THORNY TARIFF to do unto others as we would ask them to do unto us. States by cementing the friendship and good PROBLEM will of all the great peoples in all the Instead, we are doing our part to accom­ A.Inericas. modate and adapt, as a nation, to meet for­ JOHNSON WAX Co. Is ANOTHER EKAMPLE OF UNITED STATES BUSINESS MAKING FRIENDS The Honorable ALEXANDER WILEY, Senator eign needs and our own. · in Washington representing the State of Wis­ AND CUSTOMERS IN LATIN AMERICA Nowhere is that bettei· ·mustrated than in consin and ranking member of the Foreign the tariff question. This problem is invari­ (By Bernardo Estes, editor, Dindicato de Relations Committee of the United States ably one of the thorniest, most controver­ Prensa Latinoamericano) Senate was the speaker of the evening dur· sial, which we of the Congress face. RACINE, Wrs., April 12.-It is significant ing the banquet that highlighted the John­ In the few moments -remaining to me, I that the S. C. Johnson & Son Co., of this city, son copference said in part of his speech, "I won't attempt to get into it in detail. should end the second week of their first in· am delighted to say that S. C. Johnson Co. 1957 CONGRESSIONAL ' RECORD~ SENATE 5639 is 'one of our most inspfrfog exainples Of toward colonialism. One has penetrated the I am sure that governmental statements on sound, step-by-step building of foreign mar­ belt of the world's colonial areas in Asia and independence and freedom have little mean­ kets. In serving your own well-being, in Africa, Iiberating hundreds of millions of ing for millions of people throughout the serving your private good, you· have also people, and opening for those who have world if those statements ignore the issue of served the public good." known little opportunity, new horizons of colonialism. These few · words from this important freedom and development. The other, radi­ The fight against colonialism is an integral speech shows how clear thinking and far.; ating from the Soviet Union, has penetrated policy of every Asian and African country. sighted United States statesmen feel about by force, ancient civilizations to the west Only yesterday the new Prime Minister of the proper conduct of United States business and to the east which had long known inqe­ Ghana told the final session of the Gold interests in 'countries ·outside the United pendence, and had long contributed to hu­ Coast Assembly that his Government would States. It is hoped that the people of Latin manity the fruits of their ancient cultures. seek to help all African peoples in their pur­ America understand that a herd of goats The evolution of Ghana as _a country fully suit of freedom and social progress. should not be judged by the few animals wh9 free must forever stand in strong contrast It always comes as a shock to us when our do not measure up to standards. · to the revolution in Hungary 4 months attitude toward colonialism is questioned. earlier, which saw a great people once more The United States has declared again and subjected to domination a;nd slavery. again its commitment to the principle that No matter how symbolic, no matter how all peoples should be free, and I believe that representative Ghana may be in the long our history-immediate, as well as distant­ Address by Hon. John Sherman Cooper, struggle of man to be free, Ghana stands at shows that sustained purpose. of Kentucky, on Celebration of the the commencement of the difficult task of The United States is one of the few large building a new nation. It must be consid:­ powers which has no colonies-and it seeks Foundation of Ghana ered, not as a model or as an ideal alone, none. In those cases in which the full power but as a concrete instance of nearly 5 million to make a decision lay in our hands, the EXTENSION OF REMARKS people assuming the rights, and also the ob­ decision was made for independence. This ligations and problems, of independence. OF is true with respect to CUba, the Philippines, The tasks faced by the newly independent and Puerto Rico, which refused full inde­ HON. JOHN SHERMAN COOPER countries of Asia and Africa is immense. pendence. With a small body of trained civil servants, We spoke and acted with others for In­ OF KENTUCKY they must take over their governments and dian and Indonesian independence. And IN THE SENATE OF THE UNITED STATES maintain political stability-and often in the surely the world knows our great sacrifice Friday, April 12, 1957 face of bitter harassment of anti-democratic for Korean independence. parties, whether Communist or extreme Since World War II, we have been deeply, Mr. COOPER Mr. President, I ask rightwing groups. . sometimes violently, involved in a world unanimous consent to have printed in Poverty, illiteracy and malnutrition are struggle between two great centers of power. the CONGRESSIONAL RECORD the addre~s other forces against which the newly inde­ The goals of this struggle have been the I delivered at the Town Hall in New pendent peoples will have to fight for a long peace and freedom of all mankind-nothing York City on the occasion of the inde­ time. less. Ghana's future has not been guaranteed I believe it is only fair to admit that this pendence of the new nation of Ghana, on success. Its. problems, political, economic issue has influenced our relationship with March 6, 1957. and social, are many. They will challenge our allies-some of whom are colonial pow­ There being no objection, the address the new Government and citizens of Ghana ers-and that we have been required. to direct was ordered to be printed in the RECORD, with unusual demands of patience, ingenu­ ·our immediate efforts to what we have be- as follows: ity, self-restraint, and mutual cooperation. lieved was an attack on our security and But it is fortunate that in its political and We are here this evening. to mark and . to the very concept of world freedom. economic resources, Ghana enters independ­ I would point out also that it may well be celebrate an event of truly historical sig­ ence under favorable auspices. nificance. Today, the people of a former that the resolution of our own country and Due to the wisdom and restraint of its other free nations has guaranteed for many colony, the Gold Coast, became the new na­ le~er, a .great leader, as wen as the under­ tion of Ghana. · newly independent countries an opportunity standing of Great Britain, it has enjoyed for for peaceful development. During the past 12 years, many peoples years a continuous, orderly, and peaceful de­ have joined the family of nations-moved One of the major criticisms directed velopment of parliamentary experience and against the United States is that it does not by the powerful forces of freedom which constitutional processes. have swept across Asia, through the Middle put sufficient pressure on its allies to relin­ We are glad to read that Mr. Nkrumah, the quish their colonies. East, and into Africa. first Prime Minister, has noted the rich agri­ But the establishment of Ghana has new cultural, mineral, and power resources of his It is true philosophically as Gandhi said, significance in this . development, and will country, which unite to produce a per capita "There is no such thing as slow freedom" undoubtedly strengthen the movement to­ annual income of $140 for its nearly 5 million and that "all birth takes place in a moment." ward independence in Africa. For the people people-high for an African nation, and ex­ Nevertheless, the United Nations, includ­ of Ghana are the first in Equatorial Africa ceeding the combined per capita incomes of ing former colonial peoples in the United to complete the transition from colonial India, Pakistan, and Ceylon. Nations, recognized that in some cases inde­ status to full independence and sovereignty. Ghana presents- also a challenge to her pendence is an evolutionary process-as it For this transition, we must not fail to pay friends in the community of free nations­ set up a trusteeship council for the non­ tribute to Great Britain and to her enlight­ to offer sympathetic interest and assistance. self-governing territories. The record will ened statesmen. Quietly, but faithfully, Just as we, as a young and weak United show that our country has adhered to this Great Britain . is carrying out a policy of States of America, looked to our friends in spirit in the United Nations. Ghana itself assistance in the development and inde­ Europe, so let us now stand ready to lend is an example of this process. pendence of many of its formerly subject assistance to our newest and youngest Despite our record, however, the United peoples. In a narrow sense, this has been neighbor. States is faced with the continuing problem described as the brealmp of a great empire. It is a real challenge to our wisdom and of convincing the Asian and African peoples But historically, it is the ·development of a understanding. For if our interest and of our genuine support. greater system of world collaboration, based friendship are to be valued by Ghana, we I would suggest that we apply to this on freedom and justice. must accept, without question, that Ghana evolutionary policy, called gradualism­ The new nation of Ghana bears the im­ is an equal in the family of nations-free to wherever it is employed-a condition for our pression of England at her finest. · And we are develop its own democratic forms, institu­ support. This test resides in whether it is glad that Ghana has become the ninth link tions, and policies. being used to promote independence, step in the British Commonwealth, comprised of This is sometimes difficult for us to do. by step, or whether it is employed as a cloak independent and democratic nations, united We must remember that newly independent to prolong colonial domination and deny the voluntarily in free as·sociation, and truly countries, having won statehood, are jealous advance of freedom. devoted to peace. of independence. They want first to keep it, To our friends in Asia and Africa, we must Tonight, I do not want to subordinate the to strengthen it, to make it secure. It is point out that a true test of a great power's fact of Ghana's independence, and the strug­ difficult for them to agree that decisions af­ attitude toward independence and freedom gle of her people for independence and free­ fecting their country shall be predetermined is whether it strives to cooperate, and to aid dom, to the world problems with which o\lr by stronger powers. And they desire to new countries 'to hold their newly won in­ country and ·the old-er free nations must achieve some measure of economic self-suf­ dependence, or like Soviet Russia, fasten on deal. " : ~ ficience-a freedom, as they see it, from eco­ them a new control and domination. Yet lt ts a fact that this day of in-de­ nomic as well as political colonialism. There is a final point which bears deeply pendence takes on added world significance This policy is fundamentally one of self­ upon the attainment of understanding and when we contrast it with the fates of older lnterest, based on the need for internal sta­ sympathy between our country and Ghana nations in other parts of the world·. bility and ·peace over a period of years. It is and indeed on our influence for world free­ In the nearly 12 years since World War II, similar to the policies that guided the United dom. the world has watched two main attitudes States in the early years of our independence. It is the issue of racial discrimination. 5640 CONGRESSIONAL RECORD - SENATE April 12 I see here, as I know you must see, a There being no objection, the tran­ tions and· Agriculture and F'€>restry ·Commit­ parallel between the international issue of script was ordered to be printed in the tees. Senator MUNDT continues to rally nationwide public opinion on such vital colonialism and racism---and the work of RECORD, as follows.: full civil rights and desegregation going on public affairs issues as created by the cur­ here. There is a grave obligation on our UNITED STATES SENATOR KARL E. MUNM', RE­ rent investigations conducted by the Senate Government, and the people of this country, PUBLICAN, or SOUTH D:&KOTA, Is GUEST ON Select Committee on Improper Activities in who subscribe to the principle of freedom REPORTERS' ROUNDUP RADIO PROG&AM FOB Labor and Management-on which Senator and constitutional processes to see that the MONDAY, APJUL 8, 1957 MuNDT serves. Senator MUNDT received a positive, effective steps are taken without Senator l\fuNDT is questioned on numerous master's degree from Columbia University delay to remove discrimination and to assure newsmaking topics, including "What new in 1927.· He served in the United States the full freedom of all our people. legislation is needed to deal with abuses of House of Representatives for 10 years before This is true as a matter of justice and power by labor union leaders?" "How can he was elected to the Senate in 1948. Sena­ humanity at home. It is also necessary if American labor unions protect themselves tor MUNDT was reelected to the Senate in we are to be able to communicate real mean­ against rackets and racketeers? .. "What evi­ 1954. And .now, our guest is ready. ing to our leadership in the world. We must dence Will the Senate Rackets Committee ANNOUNCER. Reporters' Roundup, which have faith in the full practice of freedom produce against AFL-CIO Vice President comes to you transcribed from the Senate at home if we are to liave influence in its Reuther?" "Do you feel that most labor Radio Gallery in your Nation's Capitol, is growth in other countries. That is the unions are run in an honest manner?"' presented by the Mutual Broadcasting Sys­ reason that I emphasized at the beginning "When will the Senate investigate improper tem as part of its public service programing of this speech, the challenge of freedom. activities in management as well as labor to stimulate interest in current public affairs The announced objective of our foreign fields?" "Is Postmaster Summerfield trying issues. Reporters' Roundup is devoted to policy is not peace alone but peace with to blackmail Congress for postal funds?" encouraging a desire in all Americans to justice and freedom... We distl.riguish our "Have United States foreign-aid dollars been listen, read, and think more about public policy from that of the Soviet Union, upon spent Wisely for the future o! American affairs. When the American people inform the ground that ours is based on some first peace and prosperity?" "Should the admin­ themselves from sources of their own choos­ principle-some ethical standards. If at istration barter surplus United States prod­ ing, they make wise decisions. May the times these standards do not seem to prevail, ucts for strategic goods from Russian satel­ opinions you will now hear expressed by our we believe it is nevertheless their formula­ lites?" "Do you think there still are Com­ guest prompt you to further thought. Our tion and the continuing effort to make them munists employed in governmental agen­ guest ls United States Senator KARL E. effective, that holds peaceful natfons to­ cies?" MuNDT, Republicany of South Dakota. Sen­ gether, makes the world more civilized, and Senator MuNDT is questioned by well­ ator MUNDT is prepared to answer the chal­ gives a gleaming hope of peace. Surely we known newsmen of the Washington press lenging questions of this panel of well­ cannot compromise our world standards by corps: Mr. Bill McGaffin, Washington corre­ known and able reporters: Mr. Bill McGaflin, spondent of the Chicago Daily News; and Washington correspondent of the Chicago the failure to assure full freedom and justice Mr. Donald O'Connor, Washington corre­ at home to our own people. Daily News; and Mr. Donald O'Connor, spondent of the Detroit Times. This panel Washington correspondent of the Qetroit I am glad that the President of the United program is moderated by Robert F. Hurleigh, Times. Your moderator, Robert F. Hurleigh, States bas sent to Ghana. as his representa­ commentator and director of Mutual's News commentator and director of Mutual's News tive the Vice President of the United States, and Special Events Operations. and Special Events. to express the friendship of our country Attached is a complete transcript of Re­ Mr. HURLEIGH. And now, Mr. McGaffin, to the people and Government of the new porters' Roundup radio, a weekly nationwide let's have the first question for Senator state. feature of the Mutual Broadcasting System. MUNDT. It is an honor to meet with you tonight. This program is heard on some 584 Mutual Mr. McGAFFIN. Senator MUNDT, there has While none of us here speak in an oftlcial affiliates from coast to .coast, 9 :30 p. m. , been quite ,a sharp exchange between Sen­ capacity, we believe that we represent our eastern standard time, on the Mutual net­ ator McCARTHY and Walter Reuther, the country's tradition of freedom and express work. union leader. You recall that Senator Mc­ the sentiment of the people of the United REPORTERS' ROUNDUP CARTHY said a few days ago that the Senate states as we join you this evening to hail (Guest: United States Senator KARL E. Rackets Committee investigation· of Reuther Ghana's independence. Unfortunately, free­ MUNDT, Republican, of south Dakota. Mod­ would produce information that would make Beck, and I quote, "smell like the attar dom is not inevitable, or its spirit constantly erator: Robert F. Hurleigh. Panel: Bill McGaftln, Chicago Daily News; Donald of roses." Mr. Reuther, in reply to that, irresistible. President Elsenhower, in a re­ O'Connor, Detroit Times.) accused Senator McCARTHY of "trying to run cent address, recalled the wise observation of ANNOUNCER. Reporters' Roundup, where interference" for teamsters' boss, Dave Beck. the great Justice Oliver Wendell Holmes, bylines make headlines. In a moment hear What do you think of that exchange, sir? "the irresistible comes to pass, through United States Senator KARL E. MUNDT, Re­ Senator MUNDT. Well, I've been reading effort." publican, of South Dakota, answer questions about it,· and it seems like it's acrimonious This then is the thought upon which I fired at him by a panel of veteran reporters. enough to attract a lot of interest. I don't end-that we in the United States must Mr. HURLEIGH. "What new legislation is know anything about the merits of the pros practice freedom at hom.e to encourage this needed to deal with abuses of power by and cons of the running debate which ls exercise everywhere and help those coun­ labor union leaders?" going on between Reuther and McCARTHY. tries and those people who genuinely demon­ :Mr. O'CoNNOR. "How can American labor McCARTHY did announce one day in the strate our desire to be free. unions protect themselves against rackets committee that he had done some independ­ and racketeers?" ent investigating of some of the unions Through e1fort-

Mr. O'CONNOR. You have no personal sistance in the 1956 presidential election. ties in the construction industry in the area knowledge then, Senator, of any information Do you know, sir, whether this is true? of Scranton, Pa. the committee might have against the UAW? Senator MUNDT. No; I do not. I have read Mr. O'CONNOR. You were quoted today, Senator MUNDT. None except that there is that exchange of opinion on the part of Mr. Senator, as having said that the labor rack­ before the committee a considerable and Condon and Mr. Hall; one says "Yes" and ets committee will soon investigate dis­ growing body of evidence in connection with one says "No." I know nothing about it honest management and dishonest labor the so-called Kohler strike out in Wisconsin, whatsoever. I can say only that as far as unions in the construction industry in New which I believe does involve one of Mr. my relationship with the two campaigns go York. Reuther's unions. and in 1952 I was serving as director of the Senator MUNDT. That is correct. That is Mr. O'CONNOR. Senator, do you think that Republican speaking program for Eisen­ going to follow the rather brief hearings we're labor has taken the findings of the commit­ hower-Nixon, and in 1956 heading the truth having in connection with the Scranton situ­ tee to date seriously enough to the extent squad, that as far as my personal knowledge ation which I don't believe will carry us much that it has shown a willingness to clean its goes, no reques~s were made by Mr. Hall beyond 10 or 15 witnesses and we should be own house where corruption does exist? of Mr. Beck, but I don't know all of the able and we hope to be able to conclude be­ Senator MUNDT. Yes; I think that willing­ facts that may have developed in the course fore the Easter recess. After the Easter re­ ness has been manifest in a majority of the of the campaign. cess, then we come to the New York-Man­ labor unions. I would not want to say that Mr. O'CONNOR. Well, Mr. Hall, of course, hattan Island situation. universally they have agreed to clean their today denied that he had ever solicited Mr. Mr. O'CONNOR. We have heard a lot about own house nor am I at all certain that union Beck's financial assistance. He admitted dishonest labor leaders so far, Senator. What members have the capacity to clean their own that he had talked to Condon and that they type of dishonesty do you expect to find house without the helping hand of the Gov­ probably had talked about politics. Do you among management connected with labor? ernment enacting some new legislation, but, think, however, that this exchange, which is Senator MUNDT. We know what we're going in the main, I would say, American unionism in the newspapers, will affect Mr. Hall's fu­ to find in the New York City-Manhattan area has demonstrated a desire to cooperate with ture? He has been rumored as a candidate because before the select committee was cre­ for Governor of New York. ated our regular Senate investigating sub­ appropriate steps to clean its house. Senator MUNDT. No, I do not; because I Mr. O'CONNOR. Do you think that is a di­ think it's quite logical that any national committee, which Senator McCLELLAN also rect result of the committee investigation, heads and on which I serve, had a number of chairman in the course of a campaign is witnesses from the New York City-Manhattan sir? solicitous to secure whatever support he can Senator MUNDT. Yes. I think that its ex­ area involving the construction industry, and and if it were true-and Mr. Hall says it the kind of dishonest practice we discovered pression certainly-it, referring to the labor is not true-but if Mr. Hall had requested union movement-that its expressions in this Mr. Condon, as a friend to Mr. Beck, to sup­ there was this. That dishonest contractors connection have grown out of the hearings port _the Republican candidacy, at that time would make special under-the-table deals and the investigations. It is also true that none of the evidence which is now before with dishonest labor leaders, so that in the within the labor union, such as this bakery us was before him, so I see nothing improper competitive bidding for a housing project, union ruckus right here locally, there have about such a request, had it been made. for example, they could always underbid their been some indications that some officers Mr. McGAFFIN. Well, Senator, there was competitor because the dishonest union within the union were desiring to clean it up another matter that came out toward the leader would say, "If you'll underbid him and but I am certain t;t>.at there has been a great close of the campaign. You recall the Brooks slip me a little money, we'll eliminate the momentum given this whole movement by subcommittee, which was investigating the welfare fund payment or some other fringe the committee hearings. Government nickel plant in Nicaro, Cuba, benefit payment," so that the man who got Mr. McGAFFIN. Senator, what is going to and the construction of an addition to that gypped, of course, was the workingman who happen to Dave Beck, in your opinion? plant. ·And, testimony was given before didn't get all the benefits he expected to get. Senator MuNDT. At the moment, Mr. Mc­ that subcommittee to the effect that Mr. The man who profited primarily was the dis­ honest contractor who got the job because he Gaffin, I thin~ the major difficulties confront­ Hall had-I believe the charge was that he had an advantage in the bidding and the dis­ ing Dave Beck are outside of our c~mmittee had indulged in a shakedown of a contractor room and are in two fields; one of them very to get him to contribute to the Republican honest union leader got the benefit of what­ definitely involving his troubles with the In­ campaign, and one of the Congressmen, after ever bribe was paid him by the dishonest ternal Revenue Service, and I think they are listening to this testimony, said, "Well, if management. , going to bring in to the purview of their this testimony is true, Len Hall should be in Mr. McGAFFIN. Senator, is it possible that authority his financial transactions, his in­ jail," and we've wondered what you think another phase of management that you come-tax reports, and, of course, that will be about the charge and whether you think that might investigate is the unwarranted use of adjudicated in conformity with justice be­ might have something to do with the fact expense accounts for entertainment em­ fore the courts; but he is certainly in trouble that Mr. Hall didn't get a spot in the Cabinet ployed by management? in that area. The other area of difficulty as many people thought he would. Senator MUNDT. Yes; I think that ts cer­ with which he finds himself surrounded now Senator MUNDT. I remember the charge tainly possible. We have had within the I think is wit_hin the American which came during the latter days of the last 2 weeks the interesting beginnings of movement itself, where his associates in campaign which I interpreted at the time some evidence which would lead us in the other unions and some of his associates in as one of these _last-minute political roar­ direction of believing that in certain man­ the teamsters union have frowned very dis­ backs which sometimes come. I remember agerial groups, certain corporations-prob­ approvingly upon his repetitious use of the what Mr. Hall said in response. He said, "It's ably not the great gigantic corporations­ fifth amendment and his failure to make a lot of poppycock; there's no truth to it; I'll but in smaller corporations that there has disclosures when he appeared before our be happy to come down and appear before been a tendency to misuse stockholders' committee. Now those two areas of difficulty the committee if they will call me after the money and stockholders' funds, much in are immediate and urgent and are on Mr. campaign is over. If this is a ruse simply to the same manner that the ev.idence Beck's doorstep right now. Our committee, make me immobile during the campaign, leads us to believe Dave Beck misused of course, is also continuing its investiga­ I'm not going to fall for that political the dues paid by the union members. tions of his activities and it is entirely pos­ trickery." He offered to appear before the Since we are authorized by the act to study sible that some time later we'll have Mr. Beck committee afterward. I think it speaks very improper practices in labor and management before us again. eloquently that the subcommittee has not or labor or management, it is certainly Mr. McGAFFIN. To get back to Reuther for called him since the election. I am sure it within the realm of possibility that this kind a minute. Mr. Reuther, according to the news had nothing to do with Mr. Hall's not get­ of evidence will be firmed up sufficiently to dispatches, said that if the committee didn't ting an appointment from the White House justify some investigation in that area. call him he would insist on coming to testify because I know Mr. Hall pretty well person­ There is this important difference which I before it. Do you know whether there are ally and he has told me that he has never should point out, because our responsibility any plans to call Walter Reuther any time been an applicant for any such appointment essentially is in the direction of the public soon? and knows of no appointment in the Fed­ interest. In the field of the union, you have Senator MUNDT. Well, as I said in connec­ eral Government that he, at the moment, a situation where a man, in order to get a tion with the Kohler matter, I presume that would be willing to accept. job to support his family, must join a union. Mr. Reuther will be a witness in that area Mr. O'CONNOR. Senator, you have held 5 or Then, to belong to the union he has to pay when, as, and if we actually get it into the 6 weeks of hearings, I believe, on the team­ compulsory fees and dues for the various stage of an open hearing, and certainly if sters union. Where do we go from here? kinds of fringe advantages he gets, so he Mr. Reuther or any other well-known labor­ Senator MUNDT. Scranton, Pa., starting has no choice but to belong to the union union leader makes the request to appear next week, except we don't go to Scranton. or not support his family. A stockholder Scranton comes to Washington. The hear• in a corporation has a lot more independ­ before our committee our response will be ings deal with the situation in Scranton. ence. He can buy stock or sell it. He doesn't affirmative. Mr. O'CONNOR. What specifically in Scran• have to stay in the corporation if he believes Mr. O'CONNOR. Senator MUNDT, Dave Beck's ton are you going to investigate? something dishonest is going along. So, Washington attorney, Arthur Condon, who Senator MUNDT. It is going to involve the while we would be interested in correcting appeared with him at the hearings, claims general area of the construction industry those dishonest practices either place, our that Leonard Hall, the former chairman of and perhaps indirectly a.gain the team­ major public responsibility obviously is in the Republican Party, solicited Beck's as- sters, but the whole area of improper activi- the field of compulsory unionism, where a -C?P:I--355 " 5642 CONGRESSIONAL RECORD - SENATE April 12, 1957"_ man has to belong to a union, has to sub­ are honest political refugees, that they will .ANNOUNCEK. Mrs. Sidney Armstrong, of st. ject himself to the improper practices in be given continuous haven in this country~ Louis, Mo. order to have a job to support his family. Now, from the standpoint of those who are Mr. HUBLEIGH. "Have United States foreign Mr. McGAFFIN. Well, what other field of still over there and wanting to get here, I aid dollars been spent wisely for the :future management, Senator, do you think you think we will insist on our original under­ of American pea-0e and prosperity?" might investigate? You mentioned the standing, and that was that the United Senator MUNDT. I would say some of them example of dishonest contractors. states would take its share, not all of them, have and some of them have not. Certainly. Senator MUNDT. Yes. Well, we're not pre­ but its share. I'm Sllre we'll make exceptions we have not thrown away all of our foreign pared, of course, to list the whole series of in that direction from the standpoint of the aid; a lot of it has been used judiciously and areas in which we might go, but the con-' importance of reuniting famllies where you wisely and constructively and inevitably in tracting industry seems to lend itself espe­ have people over there whose wives may be developing the great kind Of bureaucracy. cially to that kind of investigation. There's here, whose parents may be here, or whose that has to distribute these dollars abroad another area which deals with such things intimate members· of the family are already much of it has also been used wastefully, and as garbage collection, places where unions' here, I'm sure we will adjust things so that as a member of the Senate Committee on or associations of garbage collectors or what­ they can continue to come. Appropriations, I'm one of those who this ever you call them make some kind of a Mr. McGAFFIN. Well, what would you re­ year proposes to squeeze out as much of that contract to get an exclusive right or privi­ gard as a fair share for the United States? waste and eliminate as much of the useless lege to do a certain thing in the city, and Senator MUNDT. Well, of course, that is a expenditure as is possible. . then management, call it if you will city pretty difficult thing to put down in mathe­ ANNOUNCER. Miss Mary Philips, of Tulsa, management, or politicians at the local matical terms. It's a question of surveying Okla. level-there's a great opportunity for graft what has been done by the other recipient Mr. HURLEIGH. "Should the administration and corruption in that area. countries, the other countries which are able barter surplus United States products for Mr. O'CONNOR. Senator, if I may change to absorb refugees, which have the same dis­ strategic goods from Russian satellites?" the subject for a minute here, it is reported position toward communism that we have, Senator MUNDT. I don't think I could that the United States has threatened to cut and I think it ls something which, on bal­ answer that one categorically yes or no. My off the Hungarian escapee program, that is, ance, you have to study very carefully, and I c;Usposition is to look with pretty much of a bringing the Hungarians into this country, wouldn't be able to give you an off-the-cuff jaundiced eye on any such barter arrange­ which supposedly is causing a lot of suicides answer as to the exact number of refugees I ments with satellite countries, but I would and frustration among the Hungarians would consider to be fair. not be prepared to. say I want to slam the awaiting entry here from Austria. Do you Mr. O'CONNOR. Senator, a quick question door entirely against consideration of such think the escapee program should be con­ before we go off. Do you think Postmaster conceivable exchanges. In my opinion we tinued and Will Congress do anything General Summerfield is trying to blackjack would have to balance each transaction in about it? Congress into giving him more money by relation to how it answers this criterion: threatening to cut the mail services? Does such an exchange benefit the free Senator MUNDT. Well, I don't think the Senator MUNDT. I prefer to use the word escapee program should be continued in­ world? Is it serving the self-interest of the "nudge." I think he's trying to nudge Con­ United States? Will it do more to preserve definitely and without limit, if that is your gress in tha.t direction and that probably if question. Whether we should cut it off on freedom than to promote Communism? If Congress does not make the funds available those answers could be glven so as to benefit a particular day or at any particular number he will have to carry out his program of I would want to see a lot of evidence to the American side, I would say such ex­ reducing some of the postal service. changes might be justified, but if in any re­ know what answers I would consider appro­ Mr. HmtLEIGH. I'm sorry, gentlemen, but I priate for that. But if the question is, mote respect they tended to strengthen the am going to have to cut in here. Our board other side rather than our side, I think we should we go on with an unlimited program, of judges has selected the prize-winning my answer is, I don't think so. should stay completely away from them. question submitted by our listeners for this Mr. HmtLEIGH. I want to thank United Mr. O'CONNOR. No, sir, that isn't the intent broadcast. In a moment, Senator MUNDT is States Senator KARL E. MUNDT, Republican, of my question. It's, should we cut it off going to answer these questions. Stand by of South Dakota, for being our guest on now. for the names of the winners. Reporters' Roundup, which came to you Mr. McGAFFIN. Senator, there are about.­ And now, Senator MUNDT, here are those transcribed from the Senate Radio Gallery if I may cut in here, Don-there are about, prize-winning questions from our listeners. in your Nation's Capitol. And, my thanks, I believe, 30,000 refugees who have made it ANNOUNCER. Mrs. Belle L. Crawford, of too, to the reporters on our panel: To Mr. out of Hungary and are sitting in camps in Phoenix, Ariz. :Bill McGaffin, Washington correspondent of Europe, and that is where the wave of sui­ Mr. HURLEIGH. "Do you think there are the Chicago Daily News, and Mt. Donald cides started at the report from here that still Communists ~mployed in governmental O'Connor, Washington correspondent of the no more were going to be admitted to the agencies?" Detroit Times. United States. Those people are sitting out Senator MUNDT. Yes; I am sure that there ANNOUNCER. This broadcast ·Of Reporters~ there on a limb in a very bad spot. Also, I must be in the almost 2 million civilian em­ Roundup will make news because its guest, think many thousands of the refugees who ployees here and there some Communist who United States Senator KARL E. MUNDT, Re­ came into this country on a payroll status has not yet been discovered and . disclosed, publican, of South Dakota, faced questions have had no assurance from Congress that but I am equally confident that they have which are asked by most Americans. Next their status will be regularized, and they been reduced to a very small minimum and week, and each week thereafter, Reporters' are getting-- that everything that the FBI and ·that in­ Roundup will seek out the top news and the s ~ nator MUNDT. Yes, well, that, of course, ternal security can do ·1s being done to man who makes it. You'll get the story gets into two different areas. I am confident eradicate them, so I would not think that behind the headlines as our guest answers that those who are here now and who are they are in important places today or having the questions of Robert F. Hurleigh and a legitimately here and appropriately here any great impact in the formation of public panel of veteran reporters. This is Jaffray and justify their being here because they policy. Ford speaking.