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7018 EXTENSIONS OF REMARKS April 2, 1979

I do not have anything else at the GENERAL SERVICES ADMINISTRATION Harris, James B. Poore, Wayne M. moment. Rowland G. Freeman III, of California, to Healy, A. Porter, Glen E. be Administ rator of General Services, vice Heister, Earl W. Post , Donald H. Jay Sclomon, resigned. Henry, Daniel A. Primmer, Loren D., Jr. RECESS UNTIL WEDNESDAY, Hockensmith, Steven Reiman, Teryl L. OCCUPATIONAL SAFETY AND HEALTH REVIEW APRIL 4, 1979 B. Ritchie, Jerry D. COMMISSION Hulland, Steven R. Roberts, James C. Mr. ROBERT C. BYRD. Mr. President, Timothy F. Cleary, of Maryland, to be a Hux, Dory B. Rothwell, John W., Jr. if there be no further business to come member of the Occupational Safety and Jackson, George L., Jr. Rutherford, Thomas before the Senate, I move, in accordance Health Review Commission for a term ex­ Jacobus, David F. M., Sr. with the order previously entered, that piring April 27, 1985 (reappointment). Jones, M. Schatz, Robert A. IN THE MARINE CORPS Keegan, Frederick J. Sloan, John R . the Senate stand in r 0 •':' P.SS until the hour The following-named chief warrant officers Keene, Douglas R. Smit h , Paul W. of 12 noon on Wednesday. Klaus, Garry N . Smit h, Victor J . The motion 'A-as a.c; ... t:a;J to ; and at 6: 10 for t emporary appointment to the grade of first lieutenant in the Marine Corps, for Labonne, D. Smit h , Wilbur M., Jr. p .m ., the Senate recessed until Wednes­ limited duty, pursuant t o title 10, U.S. Code, Laymance, Elbert Sorensen, Gerald R. day, April 4, 1979, at 12 o'clock meridian. section 5596, subject to the qualifications Lewis, Edward B. Stevens, Keith D. therefor as provided by law: Lucinski, Ronald J ., Tamayo, Mario H. Jr. Taylor, James C. , Thomas E. Connelley, John R. NOMINATIONS Lusk, Stephen E. Thorpe, James G. Alderson, John H., Jr. Consford, Barton D., Lynch, Michael R. Throckmorton, Executive nominations received by the Anasagasti, Geza J . Sr. Lyon, Joseph R., Jr. Ronald Senate April 2, 1979: Anding, Winst on E. Crabill, Charles L. Mahoney, William R. Townsend, Jerrel R. Angely, Donald P. Cripps, Alan T. Martinez, Jacobo L. Trosper, John T. DEPARTMENT OF STATE Barnes, Kurt T. Davis, David Robert P. Smith, of Virginia, a Foreign Mason, Tyrone L. Vandeursen, John M. Beatty, Richard F. Dorsey, Robert D. McDaniel, Edward G. Varel11, John J. Service officer of class 1, to be Ambassador Blick, Jimmie L. Douglas, Donald D. Extraordinary and Plenipotentiary of the Mendez, Christobol H. Walczak, Daniel G. Boyer, Kenneth E. Dunphy, Thomas J . Monroe, William M . . W111iams, Richard P. Unit ed States of America to Liberia. Bradford, John C. Dye, Dale A., II William Lacy Swing, of North Carolina, a Mullins, Daniel S. Wilson, Jerry L., Sr. Briscoe, Joseph O. Flores, L., Jr. Neel, John K. Windham, Alva R. Foreign Service officer of class 2, to be Am­ Brown, Randy P. Frazee, Rodney bassador Extraordinary and Plenipotentiary Palacios, Benjamin, Wolbert, Eugene E. Burke, William L. Frost, Jack D. Jr. Young, Richard D. of the United States of America to the Peo­ Burroughs, Joseph B., Fultz, Thomas E. ple's Republlc of the Congo. Jr. Fussell, Clarence R., The following-named chief warrant officer THE JUDICIARY Burwell, Edward Jr. (W-3), U.S. Marine Corps Reserve, for ap­ Frank Minis Johnson, Jr., of , to L., Jr. Gardner, Thomas H. pointment to chief warrant officer (W-3) in be U.S. circuit judge for the Fifth Circuit Cecil, Stephen E. Gaulin, George V. the U.S. Marine Corps, pursuant to title 10, Court of Appeals, vice a new position created Clyde, William L. Green, Edward U.S. Code, section 555, subject to the quall­ by Publlc Law 95-486, approved October 20, Cogswell, Merritt L. Green, Lawrence R. fications therefor as provided by law: 1978. Conley, Matthew W. Hannaford, John C. Reynolds, Thomas A.

EXTENSIONS OF REMARKS

A CONDOMINIUM OWNER'S BILL OF seek a judicial determination that a lease condominium housing. The conversion of is unconscionable: and rental projects to condominiums has also en­ RIGHTS gendered much controversy. Major problems Include an antifraud provision to pro­ associated with this phenomenon include: tect the buyer from misstatements in the the social and economic consequences result­ HON. HERBERT E. HARRIS II disclosure statement or in the advertis­ ing from the displacement of existing ten­ OF VIRGINIA ing literature. nants; the potential for consumer abuse IN THE HOUSE OF REPRESENTATIVES through the conversion of older bulldings Enactment of the Condominium Act of which may require extensive repairs; and in­ Monday, April 2, 1979 1979 would prevent future abuses and adequate notification of the intent to con­ • Mr. HARRIS. Mr. Speaker, on Wed­ provide remedies for the serious problems vert. nesday, 28, 1979, I had the oppor­ that already exist. That is why I am a co­ The Condominium Act of 1979 would alle­ tunity to testify before the Banking, Fi­ sponsor of this bill and that is why I be­ viate these, as well as other, problems. It is nance and Urban Affairs Subcommittee lieve the bill should be adopted. I am indeed time that the Congress enact a "Con­ on Housing and Community Develop­ pleased to share my thoughts on this dominium Owner's Bill of Rights" that offers matter with my colleagues: · ' basic protections to those who have chosen ment in favor of the proposed Condomin­ this form of home-ownership.e ium Act of 1979. Mr. Chairman: As a co-sponsor of the Con­ dominium Act of 1979, I welcome this oppor­ This act addresses many of the major tunity to testify before this Subcommittee. problems and abuses faced by those who Mr. Chairman, the rapid prollferatlon of HOW TO GET MORE OIL choose to live in condominiums. Among condominiums in the 1970's has made a sig­ other provisions, this bill would: ficant impact on the Northern Virginia hous­ HON. LARRY McDONALD Require full disclosure to the pur­ ing market. Many factors can be attributed to this growth. Increased production costs OF GEORGIA chaser of any information necessary to for new homes, demographic changes, cer­ IN THE HOUSE OF REPRESENTATIVES make an informed decision including a tain tax incentives and various other reasons detailed description of the condominium, have contributed to the "condominium Monday, April 2, 1979 the developer's obligations, and the pur­ boom". In Alexandria City alone, almost 1,- • Mr. McDONALD. Mr. Speaker, the best chaser's rights; 000 new condominiums were constructed during the last year. answer to the OPEC nations and their Make automatic rent increase clauses inclination to constantly increase the unenforceable as to future increases The growth in condominium ownership has been accompanied by the appearance of a price of oil, is to increase U.S. oil pro­ when the rent increases are tied to the wide range of consumer issues, problems and duction. This will not happen if the price cost-of-living index and have no rela­ alleged a·buses not experienced beforb in the of U.S. oil is kept artificially low. How­ tionship to the developer's obligations housing market. Low-quality construction, ever, to hear some of our officials speak, under the lease; unconscionable management contracts, long you would think we find it prefer able to Require the developer to warrant the term recreation leases with very high esca­ lation clauses, complex and incomprehensi­ send our dollars overseas rather than common elements of the condominium ble legal documents and the failure of devel­ permit our own people to make profits in for at least 3 years and to give each opers to provide the number or types of fa­ the oil industry. Hopefully, President buyer a 1-year warranty on the main c111ties described in promotional literature Carter will soon make the free enterprise unit; are among the many problems associated decisison and lift controls. That is .the Allow condominium unit owners to with sales, development and ownership of only way in which we can extricate our-

• This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. April 2, 1979 EXTENSIONS OF REMARKS 7019 selves from this self-created dependence movements of any one commodity. Nor does According to recent studies. on foreign oil. The Wall Street Journal the case for decontrol depend on the drlllers' Students today fare as well or better in assessment of U.S. oil potential. Even if they reading than students in the 1940s, when of March 12, 1979, explained the whole find no additional on at all, decontrol of all given identical tests, even though a much problem in a very lucid mannner. I in­ energy prices is the only way to bring on sub­ larger percentage of our youth are now en­ clude it at this point for the edification stitute forms of energy in a smooth and effi­ rolled in school. of my colleagues : cient pattern. Development of substitutes Our high school graduates score higher on How TO GET MORE OIL will be retarded until the drlllers' predictions international assessment tests in reading On June 1 President Carter has an oppor­ are proved or disproved. than all but three of the other industrial tunity to strike a blow in favor of U.S. en­ Today the incremental cost of oil to the countries, despite the fact that those coun­ ergy for a change instead of against it. On U.S. economy is more than $14 a barrel, and tries graduate a much smaller proportion of that day he acquires the power to suspend headed upward if Middle East instab111ties their students. the mandatory oil price controls that Con­ persist or worse. It makes no sense whatever The top 5 percent of our students do as gress imposed. As of that date it is entirely to continue paying these prices to OPEC well on achievement tests as the top 5 per­ up to the President whether the policy con­ while denying them to American drillers. It cent in other countries, although in those tinues of subsidizing OPEC oil production makes even less sense to maintain the con­ countries educational systems concentrate on and discouraging domestic production. It be­ trol system's entitlements, which in effect the elite. comes entirely up to the President whether tax current American oil production and use the receipts to subsidize the purchase of Elementary achievement in this country we continue to grow dependent on OPEC oil. has been steadily rising since the 1940s and To encourage the President to decide in favor OPEC oil. The American oilmen who are the closest appears to stand at historical highs. o! Americans instead of Arabs, 23 associa­ Secondary achievement improved from the tions of independent domestic petroleum to the facts of domestic oil exploration say they can displace Iranian imports with Amer­ 1940s to the mid-1960s and then declined to producers representing 10,000 independent about the level of the early '60s. producers who drill 90 percent of the new ican output if only the government will re­ move the controls that prevent them from SAT score declines seem to have stabllized. exploratory wells in the U.S. have offered The SAT declines in the late 1960s were him a big plum. doing so. That the people with such a prom­ ising message can't even get through the caused by large increases in the proportion of Unable to obtain a meeting between the President's door is scarcely a hopeful sign of students taking the test associated with the President and their representatives, the in­ any immediate return to sanity in energy rise in college attendance. The decline of the dependent producers have put their offer in policy.e scores in the early 1970s is attributable to a writing in a letter to the President of Febru­ combination of forces both within and out­ ary 28. In exchange !or terminating price side the schools-lax academic and behav­ controls on upper tier oil on June 1, 1979, THE CASE FOR PUBLIC EDUCATION ioral standards, proliferation of non-academic and phasing out controls on lower tier oil courses, social and political upheavals in the by September 30, 1981, these American oil­ '60s, a general antagonism toward authority men offer the President "increased domes­ HON. DON EDWARDS and high levels· of television viewing. tic oil production of 400,000 barrels daily by OF CALIFORNIA Most of these social irritants have passed. 1981 and 2,000,000 barrels a day in 1985. This Many corrections have been undertaken by new production would displace imports bar­ IN THE HOUSE OP REPRESENTATIVES the schools. They have tightened discipline, rel !or barrel." Monday, April 2, 1979 academic standards, course content and It is always possible that the doomsayers grading. Much remains to be done, but two are right and that there is no more oil in the e Mr. EDWARDS of California. Mr. indisputable facts are clear: eductional qual­ U.S. But only last month the U.S. Geological Speaker, I would suggest that the fol­ ity will not be improved by requiring deep Survey raised its minimum estimate o! do­ lowing article from the San Francisco cuts in educational programs and even now mestic undiscovered oil reserves 20 % to Chronicle be read by all individuals in­ our students continue to score as well or 60 billion barrels. That's hardly a negligible terested in the future of public education. better than students in other nations or amount, but the cost of drilling, as drillers Mr. Louis Honig, Jr., conclusively high­ students of 30 years ago despite the move offshore and into deeper formations, lights the successes of this system in problems. has been rising rapidly and, under controlled No serious commentator has suggested, as prices, oil and gas drilling has been losing its California and the Nation, and directly confronts the arguments forwarded by Friedman does, that the number of adminis­ attractiveness as an investment. The num­ trators has caused achievement to decline. ber of drilling rigs operating in the U.S. has those who doubt the future potential of Compared to other institutions, schools have declined 12 % since last October, due partly our public education system: few managers. to the new natural gas act. Milton Friedman's article, "Why America's In California, 4 percent of school person­ The producers , for good reason, that School System is in Trouble," appeared re­ nel are classified as administrators. Hal! of the President will merely throw them a cently in The Chronicle. Our public schools these are principals. The remaining 2 per­ bone in June. The Federal Energy Regula­ are indeed in trouble-but for less fanciful cent are divided into both support statr tory Commission, (FERC) has already de­ reasons than Friedman advances. (curriculum, staff development and evalua­ signed the bone in the form of a new price California. schools are being starved to tion specialists) and administrators (vice category, !or "new, new oil" on top of the death. Last year's statewide school budget principals, superintendents and assistant "old" and "new" categories that presently cuts of $800 million in the aftermath of superintendents) . exist. Aside from further complicating the Proposition 13 have already forced deep cuts Moreover, in response to the fiscal pres­ regulatory mishmash, the new higher ceiling in basic programs, and more are coming. would apply to very few wells. Given the sure on the schools in recent years, these Our schools are in trouble because some administrative positions have been declining regulatory risk, the attraction of explora­ pundits present a f alse picture of the accom­ tion further declines. rapidly, especially in the instructional sup­ plishments of public education. Actually, the port area. Earlier this year Alfred Kahn, head o! the institution of public education has performed Wage and Price Council, argued against try­ remarkably well in recent years. In San Francisco, for example, the num­ ing "to use rigid controls to hold down the Public schools have raised high school ber of district-supported administrators has price of oil when the incremental cost to the graduation rates from below 50 percent in declined from 400 to ZOO in the past four U.S. economy is $14 a barrel." But a few days 1950 to more than 80 percent in 1977. During years. Of the remaining 200_, 100 are princi­ later he came away from a meeting with the same period graduation r ates of black pals; 65 are vice principals; and 35 are cen­ President Carter espousing a different line. students soared from 10 percent to 76 per­ tral office staff. Lost in these reductions were Decontrol, he said, "would be seriously infla­ cent. Comparable statistics from other coun­ t h e reading and staff development offices. tionary." We would like to see the studies tries: Belgium, 46 percent; England, 20 per­ Finally, instead of centra.Uzing decision­ supporting this contention. cent; Italy, 16 percent. making in California, under the School Im­ In their letter to the President the inde­ Public schools have tripled the amount of provement Program parents and other citi­ pendent producers point out that the White college attendance n ationwide since 1960. zens are given authority to participate at House's own Office of Domestic Affairs, the College attendance rates are 46 percent of the school level in efforts to maintain and Department of Energy and the staff of the high school graduates at present; in. 1960 improve the quality of the instructional pro­ House Energy and Power Subcommittee all they were 32 percent. In California, the statis­ gram. This program now operates in more confirm that phased decontrol over the next tics are even better: 60 percent of high school than half of our public sohools. 30 months would mean a one-time increase graduates advance to postsecondary institu­ Our democracy would be in trouble with­ in the price level of one-tenth of one percent tions. Comparable figures from other coun­ out quality public education. Public schools in the first year and three-tenths of one per­ tries are again much lower: Germany, 12 per­ are the driving force behind the high levels cent in the next two years-less than the cent; France, 16 percent; UK, 10 percent. of social and economic opportunity in the increase caused by our dependency on OPEC. And public schools have opened college at­ United States. Fourteen percent of the people For our own part, we reject even this cal­ tendance to all strata of society. Today 60 in the top leadership positions of our coun­ culation. Decontrolling the price of oil will pE.'rcent of college students do not have one try ccme from the lowest socio-economic have zero effect on the inflation rate, since parent who attended a single year of col­ groups-substantially higher than other that rate is determined by the government's lege and 20 percent of young people from countries, where those rates hover around fiscal and monetary policies and not price homes with the lowest incomes are in college. 3 to 4 percent. 7020 EXTENSIONS OF REMARKS April 2, 1979

About 50 percent o! working males are in That statement long poses a monumental lines and the intercity use of cars vary from jobs wit h a higher o ::cupational status than challenge to Amtrak's management. How to nothing to only a few percent o! the total their parents. Researchers have found that cut out 43 percent of the service including costs". This a.rgumerut ts patently !alse. the occupational, educational and income much through service while: All o! Amtrak's competition ts, and always levels of previously low-income white ethnic Ensuring that !ewer trains less frequently has been, directly and indirectly subsidized and Asian minorit ies (such as Jews, Poles, wlll have "little effect on labor." with Federal, State and Local general tax Irish, Slavs, Italians, Japanese and Chinese) Saving money. revenues. are now equal to whites of native paren tage­ Attracting new ridership which wm more According to the DOT, since 1921 $525 bil­ a tremendous change over the past decades. than offset the riders lost because they h 3.ve lion has been spent on highways but user Nearly half of black families are now no train to ride. fees and other charges have resulted in the middle class, and growing numbers of Latino While a monumental challenge to Amtrak, Federal government recovering only $344 families enter the middle class each year. it may have been insurmountable to the BUlion. In this case, the "few percent" re­ Public schools can claim credit for a major DOT since they proposed no plan 'to achieve ferred to in the Times editorial actually share of this success, as studies attribute 60 these mildly miraculous results. a.mounted to over 34 percent. percent of upward social mobility to higher Within 90 d ays of the Jan. 31 announce­ Hiighwa.y police patrols, road crews, snow levels of education and document the link ment, either House of Congress can vote to removal, traffic signals, and other normal between more education and higher reject the DOT plan. The entire question o! expenses are paid, to a large degree, by the income.e Amtrak service levels and !unding must area's taxpayers. The long term, often over­ consider a number of problems which bear looked cost o! highway construction ls the upon the public's need for comfortable, safe, loss o! tax ratables to communities through AN ARIZONAN'S ANALYSIS OF and reliable mass transportation. which the highway 1s built. The remaining AMTRAK PROPOSALS SERVICE TO SMALLER CITIES AND TOWNS residents inevitably make up the loss through higher local taxes. The bus companies claim Amtrak's long distance trains, many of to pay !or the use of these faoilities. In 1977, which are scheduled to be eliminated, pro­ HON. ELDON RUDD Greyhound paid a total of $302,291 in gaso­ vide a valuable service to towns and cities line, oil and other !uel taxes, licenses, and OF ARIZONA along the routes. In many areas the train other registration !ees to the State o! New IN THE HOUSE OF REPRESENTATIVES provides the only reliable transportation during severe weather conditions. Typical ls York. This is not an adequate compensation Monday, April 2, 1979 the PIONEER which runs from Salt Lake to the taxpayers o! New York and reflects the City to Seattle. The PIONEER restored a generous, although hidden, subsidies to bus e Mr. RUDD. Mr. Speaker, I would like transportation system to many towns which lines. to bring to the attention of the House a had previously been abandoned by bus lines, Similarly, the airlines receive considerable very thought-provoking analysis of the including Greyhound. Although a recent aid through direct and indirect subsidies. proposal to cut back Amtrak service be­ o.ddition to Amtrak's system, between June Airports, air traffic control centers, FAA facllities and pi"ojects are all supported ing proposed by Secretary of Transporta­ 1977 and April 1978, the train carried 90,661 to varying degrees by all taxpayers. For example, tion Brock Adams. passengers-an average o! 277 per day. Yet, this train wm be eliminated under the DOT more than 106,300 acres o! land in Cali!or­ This analysis was made by Guy Still­ ruia are used !or airports. The airport land ls man, who probably more than any other plan. As a. result of the airline deregulation either tax free or taxed at a lower rate than Arizonan is familiar with the essential trend, many smaller cities are finding their surrounding commercial and residential need and possibilities for rail transpor­ airline service declining. Utica, New York, property owners pay. Estimated figures re­ tation. He has certainly been a pioneer in for example is now served only by a. com­ leased for 1978 indicate the Airport and Air­ that effort in Arizona. muter airline after the scheduled carrier ways Trust Fund w111 have recovered less Particularly during these times of en­ abandoned service in February. The city o! than $1.6 B111ion of the $4.3 B1llion spent by ergy consciousness, we need to be aware 100,000 can now also look forward to reduced Federal, State and Local governmenta for train service if the DOT plan takes effect. airways support. In this case, the "few per­ of the possible advantages available cent" a.mounts to 63 per cent. AMTRAK'S FIXED COSTS through rail passenger service. EMERGENCY SHORTAGES Additionally, Mr. Speaker, I think it Amtrak system restructuring discussions frequently cite money losing long haul trains The most energy effective way to move important that Congress consider the people and goods is by railway. A shift from national security implications of reduc­ and the viable corridor type of service. When such fixed costs as stations which see only freeway use to rail transport should be a ing or weakening our nationwide system two trains a day a.re cited a.s justification part of energy conservation considerations. of rail transportation, which must al­ for eliminating the service, the planners Gasoline prices will rise at lea.st 20¢ per ways be available in addition to motor seemed not to have learned the lesson o! gallon within the next two years and the and air transport as a safeguard in times corridor service. More trains reaching stations availability of gasoline in sufficient quan­ of or other national emergency. We at convenient hours increase ridership which tities is far from certain. The essential and offset the fixed costs. d'iscretionary car travel will be cut back should not adopt a policy which would either voluntarlly or because o! rationing. in any way endanger this backup sys­ The DOT plan also pushes for higher !ares on the remaining trains as the method by Yet, while one Administration department tem. which subsidies to Amtrak can be reduced. will submit contingency plans to Congress Mr. Speaker, I commend to my col­ At the same time the DOT is using this argu­ dealing wilth the new oil shortages and fuel leagues the thoughts of an outstanding ment against Amtrak, the Civil Aeronautics cutbacks, another is planning to spend $8.6 Arizonan, Mr. Guy Stillman, and request Board is criticizing the New York Port o! biillion for new highway programs while that his analysis be printed at this point Authority (which operates New York area dismembering Amtrak's system to save $280 in the RECORD: airports and the PAT.cl rapid transit system) mlllion a year. !or " . .. raising charges when activity is The hard lessons learned during the 1973- AN ANALYSIS IN SUPPORT OF AMTRAK SERVICE 1974 gasoline shortages have apparently been SHOULD BE IMPROVED-NOT ABANDONED slack, to cover fixed overhead, rather than lowering them to generate more business." forgotten. As gasoline becomes more expen­ On Janu::i ry 31, Secretary o! Transportation sive and harder to get, more riders will try Brock Ada.ms, announced the Administra­ EMPLOYEE COSTS to use the train&-0nly to find half o! the tion's plans for Amtrak: Cut 12,000 miles out A reduction in the number of trains run existing "bare bones" system has completely o! the 27,500 mile system. wm result in fewer employees working. But disappeared. Scheduled !or elimination on October 1: due to " protection" agreements which THE CONCLUSION Montrea.ler, Silver Meteor, Champion, Na­ Amtrak inherited, Amtrak wlll have to con­ New concepts o! rail pasenger travel a.re tional Limited, Southern Crescent, Floridian, tinue paying the laid-01Y workers. The Fed­ needed, not further abandonments. Our ran Inter-American, Lone Star, North Coast Hia­ eral Budget, as proposed to Congress, esti­ resources should be an essential part o! our watha, Pioneer, San Joaquin, Southwest Lim­ mated this cost a.t $100 Milllon corning out na.tional transportation. ited, Cardinal, Hilltopper, Blue Ridge, Niag­ of Amtrak's budget of $130 M111ion for new Amtrak's costs hiave risen but so has the ara Rainbow. equipment and other capital needs. Cer­ level of service provided. Train service has To justify this a.cross the board elimination tainly, the nation and the employees would improved not only in a few urban areas but of service, Mr. Adams noted that over a. five derive greater benefits i! they were being in hundreds of communities across the year period it should save the Federal G

There is no reason. to believe these are CHARLES H. CONRAD: NATIONAL Since taking the helm of the federal plan­ the end of the system cut-backs. Fewer CAPITAL REGIONAL PLANNER, ning agency 14 years ago, he also has built a trains reaching communities at increasingly EMERITUS small, professional staff that has weathered odd hours will result in fewer riders. Within riots, home rule and at least two presidential the near future, this reduction in ridership attempts to eliminate it. will be cited as proof the public does not HON. HERBERT E. HARRIS II A reception in his honor will be held to­ want Amtrak and passenger service should night at the Smithsonian Insti1tution, in the be ended. OF VIRGINIA hall with the joint Smithsonian-NCPC Bi­ This has a familiar ring of the many IN THE HOUSE OF REPRESENTATI'irES centennial display of t he history of plans for abandonment proceedings befcre the I .C.C. Monday, April 2, 1979 the nation's capital. and State Corporation Commissions. Once Conrad leaves the NCPC at a time when facilities to service passengers are razed • Mr. HARRIS. Mr. Speaker, on March plans are once again afoot to reorganize the cost of restoration of service becomes 1, 1979, a gentle. competent, committed 55-year-old planning agency, which was prohibitive.e public servant, Charles H. Conrad, re­ formed to create park land for Washington and remained, according to Conrad, as the tired with little official notice. Since 1965, protector of "the federal interest." It has TAX TREATMENT OF CERTAIN Charlie Conrad had served the United been the only federal agency making any BENEFIT REPAYMENTS States as the executive director of the long-range plans for the future growth of National Capital Planning Commission. the city. While eschewing self-promotion How Washington will look in the future HON. DAN ROSTENKOWSKI throughout his 30-year public career, as well as how it has changed in the past Charlie Conrad withheld no effort to three decade3, concerned Conrad on his final OF ILLINOIS day as he sat in his empty office on the 12th IN THE HOUSE OF REPRESENTATIVES promote and advance rational, regionally oriented, urban design and planning for floor of a modern building at 1325 G St. N.W. Monday, April 2, 1979 The commission had just concluded an­ the Nation's Capital. ot her meeting in which members were re­ e Mr. ROSTENKOWSKI. Mr. Speaker, Thanks to the civil, persistent, and minded they no longer had the powers they on March 29, I introduced legislation persuasive counsel of Charlie Conrad, once had to approve or block construction of for myself and Mr. VANIK which would the National Capital region has been buildings, bridges and roads here. simplify the current procedure for de­ largely spared some of the planned, or The commission's role, since the 1973 termining the proper tax treatment of unplanned, calamities that have beset Home Rule Act, has been reduced largely to repayments of certain supplemental much of the Nation's urban centers. advising other agencies-advice the agencies apparently may ignore, although the issue unemployment compensation benefits. For example, when the consensus has yet to be tested in court. Under current law, if an individual agued for unlimited urban freeway con­ As things stand now, Conrad points out in who is unemployed and is receiving sup­ struction, Charlie Conrad held forth for the quiet monotone that has been his hall­ plemental unemployment benefits from an integrated, regional, mixed transpor­ mark as NCPC director, neither the planning a qualifying trust established by his em­ tation system for the National Capital commission nor any agency here "has the ployer or other employment-related or­ region. A position, Mr. Speaker, that re­ power to protect the federal interest." ganization, qualifies for trade readjust­ newed support for the planning and de­ Conrad emphasizes that he is "not being velopment of Washington's Metro rapid critical of District officials or the commis­ ment assistance payments under the sion . . . this has been a wonderful part of Trade Act of 1974, that individual must rail public transit system. my life . · . . and remember we supported repay the supplemental unemployment Likewise, Charlie Conrad's vision and h ome rule and D.C. having a planning entity benefits received to the trust. The tax commitment contributed significantly to at city hall, doing its own planning. But implications of that transaction cur­ the organization, 20 years ago, of the what most people forget, even the White rently can become complex. Supple­ Washington Metropolitan Area Council House, is that NCPC also was proposed to mental unemployment compensation of Governments, long recognized as an be reorg1:1.nized to meet federal needs." benefits paid under such a trust arrange­ evolving national model for effective For example, Conrad says, many major moves by federal agencies from one location ment are considered as taxable income. regional cooperation. around Washington to another-which affect Trade readjustment assistance moneys Mr. Speaker, I would like to add my thousands of government employes and the are treated just as other Government best wishes to Charlie and his wife for local jurisdictions-are no longer subject to sponsored unemployment compensation a happy and productive retirement r eview by the NCPC or the public. programs as tax exempt payments to the together. This came about because the Government extent that they, when combined with And to the professional community Services Administration has stopped con­ other income, do not exceed $25,000 in and to whomever is appointed the next structing new government office buildings a tax year. and now leases more than 50 percent of executive director of the National Capi­ federal office space here. The NCPC charter Under current law, when an individual tal Planning Commission, let it be known gives it the power to review construction of repays his taxable supplemental bene­ that no tribute to Charlie would be more federal buildings but says nothing about fits in a year following the year in which fitting than continuing the spirit and leased buildings. they have been taken into income, he has substance of Charlie's commitment to Conrad became a city planner in the 1930s, various options for recouping the tax the enhancement of the rational plan­ in the days "when no schools had such already paid on the funds he is currently ning and development of the National things." Most places in America then had repaying to the trust. He may file an Capital region. little or no zoning, let alone long-range plans for the future. Subdivisions, suburban amended return for the year in which Finally, I commend the Washington shopping centers and urban renewal had yet the supplemental funds were received; Post article of February 22, 1979, out­ to be invented. he may, if the amount repaid exceeds lining the distinguished career of Charles A native of New Jersey, where his father $3,000, take a deduction in the year of H. Conrad, National Capital regional was a lithographer, Conrad went to Iowa repayment under the "claim of right" planner, emeritus. State College to major in forestry. But after doctrine embodied in section 1341 of the The article fallows: taking courses in landscape planning, "I Internal Revenue Code; or he may take knew that this is what I really wanted to do." CHARLES CONRAD : GUIDING THE He began doing it immediately upon gradua­ a section 165 loss deduction in the year LANDS::APE OF A CITY of repayment-if he files an itemized tax tion when he was hired by the college as a (By Paul Hodge) site planner. return. The man who helped end the ma.rch of But shortly afterward, as another world The legislation we have introduced freeways into Washington and start the war threatened, he left campus to join the would allow as a deduction from gross Metro subway system, who sparked the urban Army Corps of Engineers as a civilian planner income in the year of repayment, an renewal of the nation's capital and guided designing new army camps. "It was fascinat­ amount equal to the supplemental bene­ the greatest government building boom in ing," said Conrad, "seeing the bulldozers fits repaid. It should be noted that this more than 175 years, has retired from the right outside your barracks' windows carry­ merely allows an individual to utilize a National Planning Commission as quietly as ing out the plans you'd designed." simplified procedure in the adjustment he came almost three decades ago. Although the Corps offered him protection But, then, Charles H. Conrad is a retiring fr-0m the draft, Conrad leaped at a chance of his income, to properly take into con­ person. The slight, soft-spoken executive di­ to go to Richmond, at half the salary ($1 ,800 sideration the repayment of sums which rector of the NCPC is a man who loves build­ a year ) as an assistant to Harland Barthol­ have already been taken into income­ ing things, from cabinets to his A.Tlington omew, "considered by many to be the father and taxed-in a previous year and now home and a summer house on the Lower of city planning," Conrad said. Bartholomew must be repaid.• Potomac. was appointed chairman of NCPC by Presi- CXXV--442-Pa.rt 6 7022 EXTENSIONS OF REMARKS April .2, 1979 dent Eisenhower in 1954, three years after ning. But not all of his projects are mas­ of urban jobseeking youth outside the eco­ Conrad had joined NCPC. Conrad rose to sive. nomic system. deputy direct or during Bartholomew's six­ His first project the day after leaving the I know, many a reader is saying that yea: term. co•n mission was helping his eldest son, who among those jobless blacks are the high In Richmond, Conrad briefly helped Bar­ has a small construction business, build a school dropouts, or the high school and col­ tholomew plan expressways and arterial porch. I t isn't controversial and it won't lege graduates who can't read or write or roads for the stat e capital, but was soon chan ge the landscape of Washington, but, count well enough to make their way in draft ed and became an Army map-reading s""ys Conrad, "I enjoy it." e this society. That is true. They are the vic­ instructor. Aft er t he war, he returned to tims of past and present bigotries and in­ Iowa, working for the Des Moines city plan­ sensitivities. ning department until "a job in the East" :OLACK UNEMPLOYMENT AT DE­ That is just anot her side of the self-per­ beckoned and he came to Arlington as plan­ PLORABLE LEVEL pet uating tragedy. Jobless, hopeless people ning consultant t o updat e the county zoning produce children whom they cannot educate regulations. He stayed on t o become Arling­ properly, and these children grow up to be­ t on's chief planner for three years before HON. AUGUSTUS F. HAWKINS come jobless and hopeless. working briefly for the Federal Housing OF CALIFORNIA How is it that ~ur system can put men Administration. on the moon, explore Jupiter and its satel­ No sooner had Conrad joined NCPC than IN THE HOUSE OF REPRESENTATIVES lites wit h a camera, build weapons of In­ he was back in Arlington, representing the Monday, April 2, 1979 credible destructive potential-but it can't commission in a dispute over extending the provide a basic education and a half-decent George Washington Memorial Parkway past •Mr. HAWKINS. Mr. Speaker, even job for its young people? Rosslyn. Arlington ultimately agreed to the though the national unemployment rate Those unemployment announcements are riverside parkway, although Fairfax County has dropped to 5.7 percent, this figure dismissed by too many Americans as just later blocked its part of the planned exten­ continues to represent a high level of statistics. But behind those figures lie a lot sion to Great Falls and, on the Maryland human suffering and economic waste. of human suffering and a very heavy price side, Prince George's County blocked the This situation is even more acute for tag that you and I must pay. parkway's extension to Fort Washington Our greatest shame ls that this society across from Mount Vernon. The parkway blacks and other minorities where the has created a permanent class of jobless and most of Washington's stream valley rate is 11.9 percent. I would like to sub­ people, with most Americans never giving a parks were planned and developed by NCPC. mit to my colleagues an editorial by Carl damn.e Conrad said he didn't want to discuss Ar­ T. Rowan who addresses this deplorable lington, where he lives, because NCPC pres­ situation as well as some of the myths en tly is suing the county over high-rise that' are associated with it. GUAMANIANS DESERVE EQUITY buildings being built in Rosslyn, which the BLACK UNEMPLOYMENT Is SOCIETY'S SHAME National Park Service, NCPC and other fed­ eral agencies believe will ruin Washington's (By Carl T . Rowan) HON. ANTONIO BORJA WON PAT skyline. Some Americans rejoiced over the Febru­ OF GUAM Al t hough Conrad's style is low-key-a ma­ ary unemployment figures. They had ex­ jor reason for his selection as executive di­ pected a sluggish economy to produce greater IN THE HOUSE OF REPRESENTATIVES rector in 1965, according to then NCPC chair­ numbers of jobless, but the national rate Monday, April 2, 1979 man Elizabeth Rowe-Conrad, his staff and fell to 5.7 per cent, the lowest in more than the commission soon were at the center of four years. e Mr. WON PAT. Mr. Speaker, when many of Washington's major controversies. Yes, some rejoiced; but I was outraged. Congress passed Public Law 95-134, part The commission was the forum for the For those figures proved that Sen. Edward of that legislation was aimed at provid­ highway battles of the 1950s, "when the M. Kennedy, Urban League leader Vernon ing justice for the thousands of Gua­ expressway was king ... and highway en­ Jordan and others have been right in as­ manians whose lands were taken by the gineers were proposing eight major radials sailing President Carter's anti-inflation U.S. military at prices far less than their into the city and three beltways around it," budget policies. They are correct in saying real worth in the latter days of World said Conrad. "We fought t o get a more bal­ that minorities are carrying a disastrously War II. anced transportation system, including rapid unfair portion of the burden of fighting rail," and helped form regional transporta­ inflation. While those people, whom today are tion agencies that took over private bus From January to February, white unem­ proud to call themselves Americans, are companies and built Metro. ployment dropped from 5.1 to 4.9 per cent, most grateful for congressional permis­ NCPC also spurred the cooperation that re­ with 97,000 whites coming off the jobless sion to have the Federal courts review sulted in the formation of the Metropolitan rolls. At the same time, black unemploy­ those transactions, we believe that total Wash ington Council of Governments, which ment rose from 11.2 to 11.9 per cent-with justice has continued to evade us. has since taken over NCPC's regional plan­ another 100,000 blacks going on the jobless ning role. And it developed the Year 2000 list! The problem stems from the fact that Plan, "which was a good framework for re­ Unemployment In black America is now the current law does not provide for gional development, and Montgomery, Fair­ 243 per cent of white joblessness. And that payment of interest to all litigants who f ax, Loudoun and Arlington are still follow­ is nothing short of a social disaster. are successful in their bid for addi­ ing that basic corridor plan," Conrad said. It is just plai~ criminal what this society tional compensation from the courts. is doing to black teen-agers. When Jimmy Perhaps the most noticeable changes As a result, litigants who win an addi­ guided by the NCPC are the new federal Carter took office, according to Labor De­ partment figures, which are absurdly opti­ tional claim of say, $1,000, would in fact buildings and museums in the city and res­ be receiving 1979 dollars in exchange torations. "Since 1960," Conrad said, "there mistic, 36.1 per cent of black teen-agers have been more federal buildings built here could not find work. So 322,000 young blacks for 1945 prices. It is no secret that 1979 than at any time in U.S. history." were left aimless, hopeless, prey for the drug­ dollars are unfortunately worth far less pushers and the purveyors of crime. But Conrad feels that two of his major than 1945 dollars. Thus, we have a accomplishments have been the rehablllta­ In January the percentage was down to situation where the potential settle­ tion of the slums of the nation's capital, 32.7, but the number of drifting young blacks ments would in fact be granted at a rate where he helped plan and later direct the was up to 341,000. But from January to much below what should be granted. city's urban renewal projects, and the de­ February the number of black teenagers seeking work but not finding it jumped an­ The only way to reconcile the differ­ cision, in the midst of the 1968 riots, to be­ ence between the two factors in this gin planning immediately for rehabllltation other 52,000-this while white teen-age un­ of the riot-damaged areas. employment was dropping by 20,000. equation is to provide for the payment of simple interest to the successful Some urban renewal projects were contro­ This infuriates not the black part of me, versial, particularly the new Southwest but the American part, because it Iles at the contestants. where a historic area was razed and replaced heart of a costly social malaise. Crime is one The bill I introduce today asks that with high-rise apartments, townhouses and of the great problems of this society, and the Federal Government pay a simple what many consider a sterile, Maine Avenue most of that crime ls committed by teen­ 6 percent interest to all parties from the waterfront. "But people forget at that time, agers and young adults-the very people we leave most in joblessness and hopelessness. date of the land acquisition to the day under federal regulations, everything had to of the final settlement. be completely cleared," Conrad noted. "Our The Law Enforcement Assistance Admin­ criginal plan was to rehabllltate 75 percent istration (LEAA) tells me that blacks make The rate was chosen as a compromise of t he area and clear only 25 percent." up 47 percent of the state prison popula­ between what was given on the average tion, 41 percent of the inmates in local jails in the mid-1940's and 1950's and· what Un fortunately, said Conrad, restoration and 40 per cent of the federal prison popu­ has been slow and there still are boarded up lation. It ls easy to say, as 29 per cent of is being given by institutions today. buildings in the area. whites do, that "blacks breed crime," but the There is ample precedent for this During his retirement, Conrad expects to crime is bred by policymakers who, year in action in other land settlement cases advise the government of Nigeria on plan- and year out, leave as many as 60 per cent against the Federal Government. I urge April 2, 1979 EXTENSIONS OF REMARKS 7023

my colleagues to give this measure their social security disability awards in 1975. ceeding Republican N~tional Conven­ favorable consideration and thus insure I believe that the disability benefici­ tion. Joe had completed four terms of that total justice is at long last given aries should pay their own way when service as clerk to the minority and he those who suffered so much in the causative factors such as cigarette smok­ served each and every Member to his defense of American liberty in World ing and alcohol consumption are di­ utmost. War II. rectly related to their benefits. That To Joe Bartlett we say thanks for his Thank you.• would improve the present system many years of service and true dedica­ wherein the costs of these benefits are tion to this institution he loved so well . .financed by constant payroll tax in­ To his wife, Jinny, the lovely and charm­ GEPHARDT INTRODUCES DISABIL­ creases imposed on all participants in ing Cherry Blossom Princess whom he ITY TAX SURCHARGE AND ROLL­ the social security system. This "pay-as married in 1952 and his two daughters, BACK ACT you-go" philosophy was once before ex­ Linda and Laura, I extend to them best pressed when Congress passed the Black wishes for the future. I know Joe's star HON. RICHARD A. GEPHARDT Lung Benefits Revenue Act of 1977

Is the U.S. mllitary decline reversible, which is unconstitutional for most state sulting in untold suffering, inconvenience, Congressman? governments. and confusion to everyone's detriment. A. Yes, but we have a. lot of hard work to These federal deficits-more than $75,000,- Despite these adverse factors, including do. The main obstacle to making any mean­ 000,000 for the past two years alone--have higher prices across the board resulting from ingful arms-control agreement which pro­ to be financed by the government with bor­ substantial costs of metric conversion, the tects our national security interests is tha.t rowed money. This money ls borrowed from G.A.O. stated that the supposed benefits of for the first time we a.re negotiating with the the amount of available lending money­ metric are non-existent in almost every area Soviets from a position of relative weakness, credit-ln the private sector, which leaves and sector of the economy. and the Soviets are negotiating from a posi­ less available lending money for job-produc­ The most ardent metric proponents ap­ tion of relative strength. ing business expansion, mortgage money for pear to be government departments at the The Soviets know the trend lines. The So­ homebuilding, and personal loans for indi­ federal and state levels, educators and cur­ viets are building supersonic Backfire bomb­ viduals. riculum producers who would benefit from ers and developing a new heavy bomber-we The federal government also finances its the change to a different system since school killed the B-1 program. The Soviets are pro­ deficits by selling Treasury notes to foreign materials would all have to be replaced, and ducing and deploying a fourth generation of banks and other creditors, which increases auto manufacturers and several other large heavy I .C.B.M.s, with twice the throw-weight. foreign control over our government poli­ corporations whose particular competitive of any missiles we have, and developing a cies and our economy. situations would benefit from a measurement fifth generation-we have no plans. The So Another method is by expanding the system of more diverse and smaller units. viets have developed a land-mobile I.C.B.M.- · money supply, which reduces the value of all A major problem in fighting this effort the Administration and Congress continue to money in circulation, the cause of inflation. to impose metric is that people fall for the stall on our MX misslle. I believe that government deficit spending line that "it's inevitable," or "why should the The Soviets are putting several new bal­ is one of the most insidious threats to our U.S. be the only country not to go metric." listic-missile submarines to sea each year­ economy, and to the freedom of all our peo­ If our people want to use metric, the law the Administration and Congress have cut ple, including our youth as they come along. passed by Congress in 1866 allows them to back on our vital Trident submarine con­ It must be stopped. do so. We don't need this more recent fed­ struction. The Soviets maintain an air de­ Q. If the Budget were balanced, would our eral law, which allows a few zealous metric fense system-we have abandoned ours. The Congressmen drastically raise taxes to pay proponents to force metric upon us. Soviets have a civil defense program-we for the social service and welfare programs? Q. There has been a concerted assault on abandoned any effort to protect our popula­ A. Not 1f they ever expected the taxpayers our intelligence agencies, from a number of tion years ago. to re-elect them to any office-which is the different quarters. What has prompted this As I say, the Soviets know these trend lines. beauty of a requirement to balance the and what are the dangers to our nation's They think they can push us around at the Budget. It would force elected officials 111 security from this attack? negotiation table, and prob3.bly in a military Congress to set spending priorities, rather A. The attack on our intelligence agencies showdown as well. The problem ls, they than turning over the whole Budget process has come principally from "Liberal" politi­ might be right, unless we act immediately to to the vested interests and the bureaucracy, cians who have allowed themselves-maybe turn the situation around. which is now the case. even unwittingly-to do the work of radical A SALT treaty guaranteeing no less than Also, deficit spending has hidden the real groups that want to destroy America's ability full U.S. strate ~ ic equality with the Soviet level of taxation from people, because infla­ to prevent subversion of our nation's free Union ls the place to start, and a SALT treat.y tion also takes your money and is therefore institutions. That's a strong statement, but providing anything less must be defeated in a "hidden tax." it's true. the Senate. More than 47 cents of every dollar earned For example, civil libertarians promoted Q. As you know, Congressman, there are a in America now goes to support government the passage of legislation by Congress last lot of people who say they speak for special at some level. This compares to 25 cents of all year to require court warrants before sus­ constituencies who want more and more, big­ earned income just after World War II. If pected subversives or even foreign agents can ger and bigger, social welfare soending­ government ever takes more than 50 percent be placed under survelllance by the F .B.I. more C.E.T .A. jobs which are really used to of what we ea.rn, our people really wlll have This ls the Foreign Intelligence Survelllance hire people for city hall staffs and which go become economic slaves of the state, and the Act. Such a requirement slows down the 1n­ to political appointees, not to train hardcore whole social, political, and economic fabric tell1gence-gathering process to the point unemployed. That's just one example of of our country wm have been changed. where the effectiveness is practically de­ stroyed. It also places a record of the intel­ course. These people say "cut the defense Q. Congressman Rudd, you have taken a budget and increase the welfare programs." ligence activltles with the court and its leading role in opposing the push for na­ staff, where it can be obtained by foreign May we have your thoughts on this matter? tional metric conversion. England did that A. It is a fact that each individual tax­ espionage agents or subversives. some years ago at great expense, Inconveni­ Those who have attacked our intelligence payer's burden for national defense spending ence, and difficulty-and with no trade ad­ has actually decreased about 10 percent since agencies, and imposed such warrant require­ vantage. What about this, and who ls pro­ ments on their activities rather than rely on 1969, while the tax burden for federal welfare moting metric conversion? spending has almost tripled in just 10 years. the judgment of the Attorney General a.nd A. I have introduced a b111 to repeal the the President in such matters, misunder­ There are about 95 federal benefit pro­ Metric Conversion Act passed by congress in grams, about half of which are welfare hand­ stand or purposely confuse the basic differ­ 1975. Just like most other federal bureau­ ence between surveillance of suspected crimi­ outs of various kinds, costing in the neigh­ cratic programs, this one is being used by borhood of $220 billion a year. State and local nals by a law-enforcement agency and intel­ vested interests as a way to force metric ligence-gathering from suspected foreign governments spend another $100 billion or into being, despite the fact that our people more a year for welfare. This compares to agents. total national defense spending of about $115 get along very well with our current dual Q. This is a. critically important point, system of customary and metric measure­ Congressman. Would you explain the dif­ billion annually, or just over a third as much ment. ferences between the two types of investiga­ as all spending for welfare programs. The federal metric law has prompted all tions-intelligence and criminal? C.E.T.A. is a publlc jobs program, as you A. Surveillance of suspected criminals stated. I don't think the program should con­ manner of government actions to force an unwilling public to use metric. The Federal should require a. court-order, because evi­ tinue, because of the waste and fraud that dence ls being collected for possible prosecu­ has been rampant in it, along with the tre­ Highway Administration still plans to change all U.S. highway signs to metric at tion. Such actions need judicial oversight and mendous unnecessary growth it has ca.used approval. in local and state government. some time in the future. The National Weather Service plans to start all-metric But intell1gence-gathering for foreign In order to create more jobs for our people, policy or national security purposes not con­ I believe the federal government should re­ weather reporting, which wlll force all radio and television stations, newspapers, and nected with a suspected crime is much dif­ duce taxes and get off the backs of private ferent. It is designed to collect needed in­ citizens and their business enterprises so others who rely on their information to report the weather in metric. The Health, formation to enable the President to make that jobs can be provided in the non-govern­ proper decisions affecting our relationships ment productive sector of our economy. A Education and Welfare Department is pro­ wit h foreign countries and the protection of long overdue cut in unneeded and duplica­ moting "carrot-stick" grants to local school our people from foreign threats. including tive welfare programs would also help reduce systems in order to get them to change their possible subversion and terrorism. federal deficit spending, which I wish more curriculum and textbooks to metric, as a As commander-in-chief of Ol1r m111tary, the people reallzed is a principal cause of infia­ way to implement metric through our youth. President must have totally independent in­ tlon leading to unemployment and economic I am opposed to these efforts to force the telligence capabilities as part of his mllltary recession. American people to use metric. The General responc:ib111t.1es_.some peonle call them his Q . Will you exola.in this? Accounting Office just released a five-year "war powers." In fact, our intelligence agen­ A. As you know. the federal government study of metric conversion, which Congress ciec; onerate on a war-1ike basis 24-hours a. annually spends billions of dollars for new did not have to guide its passage of this law day, regardless of whether we're at neace or and expanded programs, when the money is several years ago. The G .A.O. reports that it war. The Presltient can't have uninformed not available in the U.S. Treasury. This is will cost our people and businesses many judges or headline-grabbing politicians sec­ done through the practice of deficit spending, billions of dollars to convert to metric, re- ond-guessing him in this role. His intelligence April 2, 1979 EXTENSIONS OF REMARKS 7037 functions should be independent of congres­ That ls no longer the case. Not only did contends that the risks in light water reac­ sional or judicial interference. the emergency systems fail to bring the tors, like that at the Harrisburg plant, were There ls nothing that the world Commu­ Harrisburg reactor immediately und& con­ "relatively trivial" compared with the risks nist movement would like better than the trol as they were meant to do, but the in coal or oil-fired generating plants. destruction of our intelligence agencies. We nuclear engineers did not know why. The problems are not trivial. But neither must prevent this from happening. I believe And, for the first time, the federal gov­ are those that must be faced squarely 1f the we must repeal the Foreign Intelllgence Sur­ ernment's nuclear regulators had to an­ US turns more heavily to coal whlle it waits veillance Act and re-establish Internal Se­ nounce that there was a real, if remote, for more nuclear safety. More use of coal curity Committees in both the House and chance that a reactor's fuel ~ods might melt would require solid answers to the problem Senate.e into a flaming blob, burning its way into the of growing emissions of sulfur dioxide, car­ earth below the plant and possibly touching bon monoxide and other pollutants which off explosions of radioactive steam. some scientists forecast could have dan­ THE NEW CLIMATE FOR NUCLEAR Thus, the assurances that nothing like gerous results by the turn of the century, in­ POWER Harrisburg could happen no longer have any cluding an unacceptable change in the meaning, and that in turn means an abrupt world·s climate. Whatever options are chosen, change in the future of nuclear power in this moreover-coal, oil shale, coal gas1.fication, HON. GEORGE E. BROWN, JR. country. solar-will require enormous costs and these, From now on, decisions about whether OF CALIFORNIA too, will have to be balanced against the nuclear-power capacity should be expanded risks. IN THE HOUSE OF REPRESENTATIVES can never be technical decisions; they must The US confronts, in short, a time of sober Monday, April 2, 1979 be political decisions, with all that im­ reflection and reassessment and in the weeks plies for mistakes in judgment based on false and months ahead this topic is certain to be e Mr. BROWN of California. Mr. and panicky perceptions of risk, rather than t he center of debate. It will take time to sort Speaker, the ongoing events at the on cold, analytical fact. It cannot be other­ out the many contradictory and confusing Three Mile Island nuclear reactor have wise, because the cold, analytical fact ls st atements of recent days-as well as the already had one certain result. Nuclear that Harrisburg was not supposed to human errors that have contributed to the power will face a new set of questions happen. nuclear accident. For the moment, however, which will require a different kind of the public's attention is focused on the cau­ [From the Christian Science Monitor, tious effort to cool down the "fiery furnace" answer than has been given in the past. Apr. 2, 1979) I need not elaborate on this point here. of the impa1red nuclear core in the Three NUCLEAR POWER Mile Island plant. The danger is not yet over. I would, however, like to bring my col­ There is no longer any doubt that vocal op­ Untll it is, those trying so patl'ently and leagues attention to editorials from two ponents of nuclear power development have calmly to avert disaster have the nation's of the most responsible newspapers in been making a valid point. Their "We told prayers.i> the country. The first editorial is from you so" reverberates justly-and sadly-in the Los Angeles Times, a strong support­ the minds of all who have failed to take the er of a responsible nuclear energy pro­ issue of nuclear safety seriously enough. At ST. PIUS X WINS STATE CHAMPION­ gram. The second editorial is from the t~e same time, in the wake of the Three Mile SHIP Christian Science Monitor, a paper Island accident, there will be a need for a calm and unemotional discussion of the known throughout the world for its mod­ whole nuclear energy question. To swing to eration and responsible news policy. the side of alarmism could be as self-defeat­ HON. RICHARD T. SCHULZE Taken together, these two items make it ing and shortsighted as moving full speed OF PENNSYLVANIA clear that the.accident in Pennsylvania ahead into a technology that clearly does not IN THE HOUSE OF REPRESENTATIVES is a profound event for nuclear energy. yet fully safeguard mankind from grave dan­ The editorials follow: gers. Monday, April 2, 1979 [From the Los Angeles Times, Apr. 1, 1979] Certainly one acute lesson learned from the e Mr. SCHULZE. Mr. Speaker, it gives Harrisburg accident is that insufficient re­ WELL, IT HAPFENED search has been done on the safety of nuclear me great pleasure to rise today to share The anguish and confusion over the reactors. Many of today's uncertainties have the victory of the St. Pius X basketball nuclear power plant accident at Harrisburg, to do with the fact that the Atomic Energy team with my colleagues. On Saturday, Pa., stem f~om errors in judgment that Commission in the 1960s gave over-optimis­ March 24, these 12 young men traveled occurred decades ago. tic assessments of nuclear-plant safety and to Pittsburgh to take on the undefeated The pioneers of nuclear power, riding made a conscious decision not to proceed Conemaugh Township team for the high on World War !I's great wave of creative very vigorously in its safety research pro­ Pennsylvania State basketball cham­ technology, assumed that it would be rela­ gram. So the information on how reactors tively simple to build enough plants to sup­ behave in abnormal situations is based on pionship. After a rough physical game, ply this country with cheap electricity for relatively limited tests. these boys, great representatives of St. generations. They also judged the risks to Moreover, safety researchers have focused Pius X and of Pottstown, Pa., emerged be low, compared with the benefits, and primarily on single failures in reactors in­ victorious, 57 to 52. decided that, in any event, what the public stead of multiple failures because the prob­ These young men, under the leader­ did not know about those risks could not ab111ty of the latter were deemed so slight. ship of Coach Tom McGee and Assistant hurt it. Yet there were several malfunctions at the Coaches Ed Kerschner and Frank Mack, They were w~ong. And it now may be Three Mile Island plant. Some came as a sur­ too late to correct those errors in judg­ prise, such as excessive fuel damage inside had come too far and worked too hard ment, particularly the error in treating the the reactor and the splllover of irradiated not to savor the sweet taste of success. mysteries of nuclear-power gen&ation as water into the auxiliary control bullding. And as senior Tom Healy noted: the industry's own private business. Hence future research will have to be greatly We wanted to go out on top. So I went It became clear years ago that plants as broadened. Also, it ought to be conducted into the game thinking we couldn't be big and as complex and as potentially dan­ under experimental conditions and not just beaten. gerous as the one at Harrisburg were not based on computer models. simple to build, at least without some flaws It may be instructive to the public to point These 12 young men, Capts. Chris either in design or in workmanship. out, as a Boston Globe writer does, that this O'Connell and Stephen Jamison, Mike The industry then accepted the inevita­ is not the nation's first technological chal­ Agresta, Mike Healy, Tom Healy, Steve b111ty of accidents, but assured the public lenge of this kind. Throughout the first half Krageski, Calvin Mangum, Jim Mooney, that emergency systems would override any of the 19th century, steam engines posed a equipment failure or wrong decision long chronic problem, exploding and killing peo­ Paul Shoemaker, David Urban, Rod Wil­ befc~e a power plant's reactor could get ple at a terrific rate (496 persons in 14 ex­ liams, and Dan Yentz, have worked hard, out of control. plosions in 1838 alone). Publlc pressure ulti­ determined to do their best. Throughout Until last year, the federal government mately brought protective legislation and the season, their best has been enough, insisted that the possib111ty of the ulti­ inspections. and I ask you to join me in congratulat­ mate nuclear power plant disaster-a core­ The potential hazards of nuclear power­ ing these young men and their school, melt--was so remote that it need not even including the problem of nuclear waste dis­ not only for their victory, but more im­ be addressed in any hazard analysis that posal-are far more awesome, however, and portantly, for their dedication and de­ accompanied an application for permission the ris~s in i;ming ahead with nuclear power to build a plant. And, until the Harrisburg development must be soberly weighed. Even termination. incident, nucle3r experts could demonstrate the proponents of nuclear energy are mind­ I wish them the best of luck next year, that emergency systems had prevented every ful of them and many therefore advocate and hope that I shall again have the breakdown and failure from triggering other slow, very careful nuclear growth. In this failures that would make a core-melt a real connection Energy Secretary James Schles­ opportunity to rise before you to share threat. inger seems his own worst enemy when he with you their success.• CXXV---443-Pa.rt 6 7038 EXTENSIONS OF REMARKS April 2, 1979 THE ALL-VOLUNTEER SYSTEM no-;; all bad. As you point out, a man with an been held to explore, among other things, M.A. does not necessarily make a good rlfie­ the establishment of consumer coopera­ man. I had one and he was a disaster. My personal opinion ts that draft machin­ tives, mechanisms for assisting senior HON. LES ASPIN citizens in their shopping needs, and of OF WISCONSIN ery should be created once again as a stand­ by measure and would provide the required expanding existing price monitoring IN THE HOUSE OF REPRESENTATIVES backing for the regular ground forces. campaigns that alert consumers where Monday, April 2, 1979 Cordially. the best prices for goods and services WALTER PATRICK LANG, Jr., can be found. • Mr. ASPIN. Mr. Speaker, we have Lieutenant Colonel, U.S. Army. One of the most active and innovative heard a lot lately about the alleged fail­ P.S.-I do not agree with your position on public interest organizations in Detroit ure of the All-Volunteer Force oth how become "mercenaries." This ignores the having to go without adequate insurance picked and delivered 350 lbs. o! strawberries. !act that their officers are logically branding altogether, and of housing redlining were On October 17.th, they walked in the Focus: themselves also as "mercenaries" since they, the subjects of a major consumer con­ Hope Walkalong. llke all other U.S. peacetime officers, are o! ference that was held March 17, 1979, Marge Bursie the director o! the program course volunteers. Was Marshall a mercen­ at Wayne State University in Detroit. and George Covintree the Coordinator both ary? Eisenhower, Bradley, etc.? They were all Several hundred citizens attended, as regular, volunteer soldiers. are proud of the interns and their work. Ms. well as the major consumer, community, Bursie stated "In a time when the media There is also a problem o! a !allure o! insti­ and public interest organizations in the and the city officials have paid too much tutional memory. Our junior officers have attention to disruptive youths we are proud constructed a myth in which the draftees o! Detroit area. The conference received a great deal of favorable publicity on tele­ to show that many of the city's young people the pre-Viet Nam era were a sturdy band o! care about themselves and others. Their yeomen !armers and small tradesmen who vision, radio, and through the print work goes on dally and with little acclaim. served their country selflessly in an army media. devoid of discipllnary problems. I served tn In addition to furnishing the partici­ Councilwoman Maryann Mahaffey pre­ that army, 1962-1965, in an infantry bat­ sented the interns with the cLty's Distin­ pants with the information they required guished Service Award. The ones that re- talion. Firstly, the omcers and non-coinS to deal with their own consumer prob­ were 953 professionals. Secondly, there were ceived the award are: Teena Wllliams, Lili­ many, many discipllnary problems. I served lems, the leaders of the major organiza­ ana Mina, Malcolm Richmond, Michelle on my battalion's special court for two years tions decided to explore ways of working Fleming, Mary Kay Henry, Andrew Walden, and I know. Thirdly, as you point out, there together in the future on common proj­ La.Marr Kirkland, T111er, Donna Sha­ were many more CAT IV's than now and they ects of benefit to citizens and consumers. vlls: Kevin O'Donnell and Margaret Craw­ mostly ended up in rifie companies. This was A few follow-up meetings have already ford. April 2, 1979 EXTENSIONS OF REMARKS 7039 Other interns that have just recently Liliana a.nd John spoke with the owners which supported the recent CIA .figures. joined the group are: Sharon Stencil, Brenda about the poor condition of the store. The According to staff at the IA office, free Johnson, John Jagelewskl, and Jim Ander­ blame was placed on the stock boys. On world production in the first three quar­ speaking with the 3 stockboys the interns son. ters of 1978 averaged 45.5 million barrels were told that the store manager was inex­ per day compared with 47.4 million bar­ AMERICAN FRIENDS SERVICE COMMITTEE perienced. The stockboys stated that they are ordered to keep stacking and not to throw rels per day for the first quarter of 1979. INTERNS IN COMMUNITY SERVICE anything away! The increase in production of 1.9 million Our interns do quality checks in neighbor­ Out of 96 there are only 11 health inspec­ barrels per day is also supported by hood inner-city stores. In our quality check tors to inspect all of the stores in the Detroit figures in the March edition of the Oil we look for things which every consumer ex­ area. It ls Impossible for these 11 to do this and Gas Journal which indicated tha.t pects, such as overall cleanliness and condi­ job that 1s requtred.e the increase in free world production tion of the store, quality and freshness o was 2.4 million barrels per day. produce and meats. The following is a list of complaints against Mr. Speaker, as we begin discussions ONE store in our neighborhood compiled by of domestic crude oil policies, it is criti­ John Jagelewsll:i and Liliana Mina, in July WORLD OIL PRODUCTION cal that we gain an accurate assessment and October, 1976. of the current oil "shortfall." I hope my 1. There were beer boxes in the middle of colleagues will look closely at the March the fioor. HON. ALBERT GORE, JR. 21 memo from Lincoln Moses to John 2. The door on the beverage cooler was OF TENNESSEE O'Leary and the Sunday Washington missing. IN THE HOUSE OF REPRESENTATIVES Post story by J.P. Smith which analyzed the memo. 3. The freezer case was filthy. Monday, April 2, 1979 4. There were open meat packages. some DEPARTMENT OF ENERGY, with freezer burns in the meat depth. Strong • Mr. GORE. Mr. Speaker, on March l, Washington, D.C. odors!!! 1979, I released a report completed by INFORMATION MEMORANDUM 5. There was a cooler off in a corner, full of the Library of Congress which concluded To: John F. O'Leary. freezer burned meat: of note: a package of that, despite the Iranian oil shutdown, From: Lincoln E. Moses. cow tongue with green fungus over 1t. All of world oil production has remainE:d vir­ Subject: Figures on World Crude Production. this meat was for sale at full price!!! tually the same during the first quarter Here are figures on world crude produc­ 6. Frozen llver was defrosted. of 1979 as it was during the first three tion. They are from CIA. 7. Temperature gauge was broken in the quarters of 1978. The study was based Note: fish freezer. on best guess estimates of first quarter 1. I was wrong about world on production, 8. There were files in the fish and dairy which these figures show to be above Janu­ world production. ary and February of 1978 (though down cases. DOE's administrator of the Energy 9. Boxes of Imported fish were broken open. from the last two months of 1978). Information Administration has now 2. The columns are in pairs, ordered by 10. In another freezer frozen ples were provided the most recent update of smashed and crumpled. Boxes open. month, November, thru December, etc.; in actual world production figures in a each case 1978 ls followed by 1979 (Table 1). 11. There was no thermometer in the Julee March 21 memo to Deputy Secretary 3. OPEC production ln the first two cooler. John O'Leary. The memo, based on CIA months of 1979 has been slightly higher than 12. Orange juice cans, bent and leaking!!! figures, shows that the Library of Con­ in the same period of 1978; non-OPEC pro­ 13. Spoilage in the juice cooler. gress estimates were actually slightly duction, which is shown only tmpllcltly, has 14. The fioors were filthy!!! The worst conservative but amazingly accurate. been appreciably higher in January-Febru­ we've seen. OPEC production for January and Feb­ ary 1979 than in January-February 1978. This report was called in to the Depart­ ruary of 1979 was up 800,000 barrels over ment of Agriculture, Oct. 19, 1976. They in­ the comparable period in 1978. Non­ formed us they w1111nspect the store with us Non· OPEC production was up about 2 million Total OPEC OPEC next week. barrels per day over the 1978 period, The interns and A.F.S.C. filed a complaint against this store with the Detroit Depart­ yielding a total world production in­ Janu ary/ ment of Health. They gave an inspection and crease of over 2.8 million barrels per day. February '78 __ 57, 317 27,851 29,466 found 67 demerits out of 100, chief among January/ It is true of course that some of the •79 __ 60, 142 these was operating without a license and a oil production increase would be due to February 28,638 31,504 food handlers permit. Other included offen­ sive odors, tues. floors filthy and in need of an increase in Communist productiJn 4. The increase in non-OPEC on between repair, thermometers la.eking in refrigerator which should not be included in a free the two periods is 2,038, that is large, but not and freezer units, refrigerator units filthy, world supply analysis. DOE's Interna­ unbelievable; in November 1977, the figure and lack of sanitary areas for food storage tional Affairs Office provided me with was 28,790 and thirteen months later it was and preparation. figures for free world oil production 31,580-an increase of 2,790.

TABLE 1.-CRUDE OIL PRODUCTION (ESTIMATED) (Thousands of barrels per day) Maximum sustainable capacity November November December December January January February February (December Country 1977 1978 1977 1978 1978 19791 1978 1979 1 1978)

Algeria ______------______950 l, 230 950 l, 230 950 1, 230 l, 000 1, 230 1, 300 2, 850 3, 100 2, 900 3, 100 2,000 3, 100 2, 300 3, 100 3, 100 1, 890 2, 650 2, 670 2, 100 1, 720 2, 620 1, 730 2, 600 2, 900 Qatar ______------______2, 080 2, 100 1, 960 2,200 1, 890 2, 170 1, 910 2, 160 2, 300 ~i~=~t~ ======480 480 470 580 450 550 480 '.i50 600 Saudi Arabia __ ------8, 930 10, 250 9, 620 10, 320 7, 740 9, 790 8, 340 9, 800 10, 700 UAL------1, 930 1, 830 2, 000 1, 850 1, 740 1, 830 1, 880 1, 820 2, 350 Arab OPEC ____ ------______Ecuador ______19, 110 21, 640 20, 570 21, 380 16, 490 21, 290 17, 640 21 , 260 23, 250 180 200 200 210 180 250 170 250 230 Gabon ______------______230 220 230 220 220 220 220 220 230 Indonesia ______1, 710 1, 590 1, 720 1, 590 1, 700 1, 600 1, 710 1, 600 1, 700 I ran ______------______6, 090 3, 490 6, 380 2, 370 5, 290 450 5, 530 700 6, 600 Nigeria ______------______1, 920 2, 280 1, 850 2, 400 1, 640 2, 440 1, 570 2, 450 2, 400 Venezeula ______2, 070 2, 250 1, 960 2, 350 1, 780 2, 260 1, 620 2, 300 2, 400

CanadaTotal ______OPEC ______------31, 310 31, 670 32, 910 30, 520 27, 300 28, 510 28, 460 28, 780 36, 810 Mexico ______1, 448 1, 520 1, 447 1, 540 1, 237 1, 540 1, 298 1, 540 1, 800 1, 030 1, 330 1, 080 1, 370 l, 110 1, 420 l, 120 1, 420 1, 500 Total World __ ------______60, 100 62, 908 62, 100 62, 100 56, 700 60, 000 58, 000 60, 300 ------1 Estimates for January 1979 and February 1979 were obtained from International Affairs and CIA. 7040 EXTENSIONS OF REMARKS April 2, 1979

TABLE 2.-WORLD CRUDE OIL PRODUCTION (ESTIMATED) [Thousands of barrels per day)

Non­ Non­ Arab Arab Total Arab Arab Total Total OPEC OPEC OPEC Total OPEC OPEC OPEC

October 1977 ______59, 195 18, 280 11, 900 30, 180 32, 450 29, 015 July 1978. ------59, 480 17, 200 12, 100 29, 300 31, 690 30, 180 November 1977 ______60, 100 19, 110 12, 200 31 , 310 33, 788 28, 790 August 1978 ______60, 250 17, 550 12, 070 29, 620 32, 170 30, 630 December 1977 ______62, 100 20, 570 12, 340 32, 910 35, 437 29, 190 September 1978. ______62, 660 19, 560 12, 445 32, 005 34, 535 30, 650 January 1978 ______56, 700 16, 490 10, 810 27, 300 29, 647 29, 400 October 1978 ______62, 870 20, 110 12, 000 32, 110 34, 800 3?, 765 February 1978 ______58, 000 17, 640 10, 820 28, 460 30, 878 29, 540 November 1978 ______62, 508 21 , 640 10, 030 31, 760 34, 520 31, 238 March 1978 ______58, 300 17, 070 11, 2~0 28, 360 30, 830 29, 940 December 1978. ______62, 100 21 , 380 9, 140 30, 520 33, 430 31, 580 April 1978 ______59, 470 17, 440 11, 500 28, 940 31, 230 30, 530 January 1979 ______160 000 21, 290 7, 220 28, 510 31, 470 31, 490 May 1978 ______58, 420 16, 590 11, 570 28, 160 30, 510 30, 260 February 1979 ______150: ooo 21, 260 7, 520 28, 780 31, 740 31, 520 June 1978 ______58, 900 17, 130 11, 910 29, 040 31, 740 29, 860

1 Preliminary estimate. Source: Central Intelligence Agency, National Foreign Assessment Center, International Energy Statistical Review, Monthly Energy Review. (From the Washington Post, Apr. 1, 1979) a day to 7.2 mlllion barrels a day in Janu­ tribute to Joe Bartlett, who retired after DESPrrE IRAN Loss, OIL OUTPUT TOPPED ary. Non-Arab production has since begun serving as one of this body's most well­ EARLY 1978 LEVEL to rise. The total increase in OPEC second­ liked and well-respected employees. (By J. P. Smith) leading producer-Kuwait, production re­ sulted from higher output from Iraq-now Few know this House, or love this Despite the Iranian oil shutdown oil pro­ the cartel's Saudi Arabia, Venezuela, and House, as much as Joe did. First starting duction worldwide was higher during the Nigeria. as a page, Joe worked his way up the first two months of this year than in Janu­ On Friday Schlesinger defended his depart­ ladder to chief p-a.ge, reading clerk and ary and February of la.st year, according to ment's shortage estimates on Capitol HUl. finally, minority clerk. The experience he the Central Intelligen::e Agency. Also, he told the National Association of gained during his 37 years here gave him In addition to Energy Department docu­ Manufacturers in a breakfast speech that a unique perspective that was fascinating ments drawing on CIA statistics, oil produc­ continuation of the proJected shortage, tion from the Organization of Petroleum Ex­ to all of us. Though Joe worked on the would depend largely on "whether produc­ other side of the aisle, he was alw-a.ys ex­ porting Countries (OPEC) rose from 27.9 tion wlll be cut back" by other OPEC coun­ million barrels a. day in 1978 to 28.6 million tries as Iran increases its output. tremely thoughtful toward those of us barrels a. day this year, even though Iran, Iran ls now producing nearly 3 mlllion on the majority side. formerly the cartel's second-largest producer, barrels a day, compared to more than 5.5 mil­ Mr. Speaker, I wish the very best to my was exporting no oil. lion when the shah was in power. good friend Joe Bartlett, along with his Energy Secretary James R . Schlesinger has Some international oil analysts, however, wife Jinny and family. May he enjoy life said repeatedly that the drop in production question DOE's interpretation of oil pro­ to the fullest as he pursues his interests resulting from the Iranian revolution ca.used duction and inventory data. outside this body.• a world oil shortage of 2 million barrels a One, Bruce Wilson of Smith, Barney, Har­ day-with a hal!-mlllion barrels a day or ris, Upham, says, "I! you look at the num­ more of that shortfall affecting the United bers there probably was no shortage in ex­ CONGLOMERATE MERGERS States. cess of 1 mllllon barrels a day worldwide." According to a DOE memo, however, gov­ He adds that "Schlesinger has tried to ra­ ernment analysts conclude that during the tionalize a larger shortage," saying that HON. J. J. PICKLE first two months of this year, worldwide pro­ because of higher prices and profits avail­ OF TEXAS duction (including OPEC) was 60.1 mlllion able in Japan and Europe major oil com­ barrels a day compared with 57.3 mill1on, panies have shifted some of their supplies IN THE HOUSE OF REPRESENTATIVES barrels a day last year. there instead of to the United States. Monday, April 2, 1979 Similarly, oil production from countries Energy Department officials now concede outside the oil cartel rose from 29.4 mill1on that world production has gone up this • Mr. PICKLE. Mr. Speaker, "Conglom­ during the first two months of 1978 to 31.5 year compared to la.st year even though Iran erate Mergers-A Threat or a Bless­ million barrels a day this year. was shut down !or more than 2 months. But ing?" This is a problem that has been While in the past ~ome CT A oil analyses they stick by their assessment that there is worrying a lot of us for some time. It have been questioned, the Energy Depart­ stlll a 2 mllllon barrel a day shortage be­ appears to me that the big are getting ment relies on the agency's statistics !or its cause of higher demand. calculations of worldwide oil production. bigger and there is not enough way to The Central Intelllgence Agency's energy protect our small businesses. Apparently In a memo to Deputy Energy Secretary forecasts have sparked controversy in the John F. O'Leary citing CIA-statistics, Lincoln past. The CIA's 1977 forecast of a world oil the antitrust hws do not seem to work Moses, head of the DOE's Energy Information shortage triggered by anticipated declines since many of these mergers are between Administration said. "I was wrong a.bout in Soviet on production, as well as the agen­ companies in unrelated fields. Yet the world oil production, which these figures cy's published data in 1978 on Saudi Ara­ effect to economic concentration may be show to be above January and February of bia's productive capacity, were both chal­ a threat to small businesses who have no 1978." lenged by on experts. way to fight back. Further, we do not In the memo, a copy of which was obtained Schlesinger and John Treat, one of DOE's yet know what implications this may by The Washington Post, Moses adds that leading international oil spe<:lalists, sa.y that production went down in January and Febru­ have on the future lessening of compe­ the shortage wm continue unless production tition. This is a problem that needs ary when compared. with the last two months remains high enough to allow on companies of 1978. There was a similar drop during to rebuild inventories during the spring and further study. Senator EDWARD KENNEDY January and February la.st year, compared summer. has introduced a bill, S. 600, that would with the year before. Stlll another !actor ls on consumption. limit the ability of two companies to Moses also wrote that non-OPEC produc­ Albert H. Linden Jr., assistant administra­ merge, prohi~ting under certain cir­ tion "has been appreciably higher" this year tor of DOE's Energy Information Administra­ cumstances, those with assets or sales of compared to 1978's first two months. "The tion, says that demand for oil this year is more than $2 billion. They wlll be having increase ln non-OPEC oil between the two running about 3 percent in excess of last hearings in the Senate on this soon. I periods is 2 (mllllon barrels a day), that ls year's consumption level.e large but not unbelleveable" Moses wrote. know that no one welcomes further Gov­ He also pointed out that non-OPEC pro­ ernment intervention in business, but duction rose 2.7 million barrels a day in TRIBUTE TO JOE BARTLETT this is a problem that needs careful the 13-month period following November thought. I would like to submit an article 1977 to its current level. This increase was that appeared in National Journal on the result of stepped-up production from the HON. MORGAN F. MURPHY March 24, 1979, on this subject. North Sea, Mexico, Canada, and some Third World states. OF ILLINOIS The article follows: Since January 1977 Arab OPEC production IN THE HOUSE OF REPRESENTATIVES CONGLOMERATE MERGERS-A THREAT rose from 16.4 million barrels a day to 21.2 Wednesday, March 28, 1979 OR A BLESSING? mllllon barrels a day in January this year, (By Lawrence Mosher) while the output of the cartel's non-Arab • Mr. MURPHY of Illinois. Mr. Speaker, When Mobil Corp., with assets of •t0.7 b11- producers declined from 10.8 mlllion barrels I want to join my colleagues in paying llon, acquired the Montgomery Ward retail April 2, 1979 EXTENSIONS OF REMARKS 7041 chMn by buying its pa.rent company, Marcor Shenefield concluded: "When our found­ them in their race against their counterparts Inc. (assets $2.8 billion) in 1974, there were ing fathers said, 'We hold these truths to a.broad." palpable gasps in the federal antitrust be self-evident,' nobody said, 'What ~ your At the March 8 hearing, Sen. Orrin G. esta.blishmen t. data?'" Hatch, R-Uta.h, pointed out that most of the When General Electric Co. (assets $9.4 DATA BASE rise in manufacturing economic concentra­ billion) purchased the mining company, The battle over the data. however, is tion took place well before the higher merger Utab International Inc. (assets $909 milllon) crucial. activity of the 1960s. Hatch argued that there two years later, the gasps turned to groans. The essential argument for restricting ls little connection between mergers and Why the resplraitory excitement with!in larger mergers rests on two points: that the concentration. the Justice Department and the Federal aggregate economic concentration of busi­ Regardless of how this argument ends, Trade Commission (FTC)? To antitrust of­ ness in the country is too high; and that the proponents of a law limiting mergers stlll ficials and such Capitol Hlll allles as Sen. recent flurry of mergers-there was another insist that the new wave of conglomerate Edward M. Kennedy, D-Ma.ss., and Rep. Peter spate o! them in the 1960s-is a significant mergers is fundamentally different from the W. Rodino Jr.. D-N.J., these ma.m.moth cor­ cause of this concentration. wave of the 1960s. porate mergers signaled an ominous turn in In his testimony to the Senate Judiciary In his lengthy brief presented to the Judi­ the nature o! the American economy. Committee, Alfred F. Dougherty Jr., director ciary Committee, the FTC's Dougherty de­ The big a.re getting bigger. More power of the FTC's Bureau of Competition, cited scribed the earlier merger period as one of ls flowing through fewer hands, or so it several studies by the FTC and private econ­ "industrial" capitalism, when "high-flying looks. So the tirustbusters are now asking omists that link mergers to aggregate con­ conglomerateurs" bought growth-oriented whether the spurt o! large conglomerate centration. The Conference Board, for ex­ companies with low profits and high expec­ mergers ls mim:~hlng the country irrevocably ample, has charted the rise in the share of tations. away from its historic "Jeffersonian prefer­ total manu!acturing assets held by the coun­ Today's mergers, he said, represent "finan­ ence !or dispersed power," as FTC chairman try's 200 top manufactuPers from 46 per cent cial" capitalism, with large conglomerates Micha.el Pertschuk put it in testlimony on in 1947 to 51 per cent in 1954 and 61 per cent engaging in "growth by acquisition" by pick­ March 8 to the Senate Judiciary Committee. in 1972. ing up mature, well-managed firms instead The committee that day began a new of starting new ventures of their own. This round of hearings on the conglomerate Other studies conclude that "acquisitions alone" accounted for most of that rise, practice, he asserted, produces little or no merger phenomenon and what to do about economic benefit to anyone except the ac­ it. The hearings, which will conclude in Dougherty said. Although current statistics on economic quiring company's executives (boosted sal­ April, launched a long-awaited public de­ aries, "perks" and egos). the shareholders of bate that could trigger the most radical concentration are not available, the level of concentration in the manufacturing field the acquired companies and the bankers and change in the government's antitrust pos­ lawyers who facmta.te the mergers. ture since the founding Sherman Antitrust appears to have stab111zed, according to Wil­ liam S. Comanor, director o! the FTC's Bu­ "In many cases,'' Dougherty said, acquisi­ Act of 1890 and its later companion, the tions are developed by investment bankers Clayton Act of 1914. reau of Economics. But, as FTC chairman Pertschuk put it to the committee, "This and advisers, who then ofter to acquisltlon­ To prod the process, Kennedy, who be­ minded companies both the idea and the came Judiciary Committee chairman in Jan­ growing wave of large mergers, which may not dissipate in the near future, concerns us servlr-es of the in··estment fi!'m. Fees in large, uary, introduced a blll (S 600) that would complex transactions are often in excess of flatly prohibit such mergers as Mobll-Marcor principally because it increases the rate of large firm growth and retards declines in $1 mllllon, and may run as high as the $6.3 and GE-Utah and make merging more dif­ mm ton req.ulred to engineer J. Ray McDer­ ficult for hundreds more of the nation's top aggregate concentration." Critics of the anti-merger movement how­ mott Co.'s $758 m1111on acquisition of Bab­ corporations. cock & Wilcox Co." McDermott ls a marine One reason !or the current push to con­ ever, question both whether the govern­ ment's statistics are significant and whether contractor, Babcock makes boilers. trol large mergers ls that the government's "Totally unsupportable!" ls New York antitrust agencies have virtually given up mergers have had a particular effect on ag­ gregate concentration. antitrust lawyer Ira Milstein's reaction to on the traditional antitrust route to attack the suggestion of merger m¥e-work. "Merg­ the conglomerates. Federal anti-merger J. Fred Weston, a professor at the Univer­ sity of California (Los Angeles) Graduate ers are made for sound, commercial reasons laws cannot reach the big "pure" conglom­ for the company's well being," he insisted erate mergers-between companies in unre­ School of Management, challenges the as­ sumption that measuring the share of manu­ in an interview. lated fields, such as Mob11-Marcor-and they Milstein and other opponents of anti­ have become increasingly ineffective in deal­ facturing company assets held by the top firms adequately describes the extent of merger legislation cite the under-valued ing with the less pure mergers between com­ stock market and continuin15 lnfiation as the panies that may overlap in market or overall economic concentration in the United product. States. Weston, who hopes to testify at a primary causes of the current merger boom. subsequent Senate Judiciary Committee Speaking for the Business Roundtable, Last year, 2,106 mergers of all kinds were Thomas S. Thompson, vice president for announced, 80 o! them with a purchase price hearing, said manufacturing companies ac­ count for only 28 percent of the business corporate affairs at Continental Group, ex­ o! more than $100 million. This represents plained to National Journal: a 95 percent increase from the year before, assets of the entire economy. and a 471 percent increase from 1975. "When Ralph Nader testlfled at an earlier "You can now buy assets at 25 to 30 per cent of replacement value. This ls the best The total purchase value o! all reported Kennedy hearing, he said a democracy won't mergers also shot up dramatically last year, work well when 200 firms control two-thirds investment a company can make. But this also ls a phenomenon of the moment, due to well ahead of the inflation rate. Mergers of the industrial assets," Weston said. "But 1! totaled $34.2 billion in 1978, compared with manufacturing only represents 28 per cent of the impact of government policy. $11.8 b11Iion in 1975. the economy, then 23 percent of that two­ "If we would turn a.round and straighten Antitrust officials concede that they are thirds would come to 19 per cent, which is out our inflation with a vigorous balance-the­ abandoning the economic argument o! re­ quite a bit di1ferent than what Nader budget attitude. if we had a forceful energy duced competition in going after the big im1')lied." policy, then confidence would return and the mergers. They now seek to pin their case Weston added that the capital-intensive market would refiect the true value of re· on the more subjective social and political nature of the largest industrial companies placement costs. dangers they say the big mergers pose. further distorts the significance of measuring "So this issue ls very complex. If Shene­ John H. Shenefield, assistant attorney gen­ by total assets. He suggested that "value field and Pertschuk think they can solve eral for antitrust, put the department's case added"-the difference between a product's everything by limiting mergers, then they this way in testifying before Kennedy's com­ cost and its selling prlce--contalns less bias. are either very naive or very uninformed.'' mittee on March 8: (Even on this basts, however, the 200 largest THE LEGAL PROBLEM "We are faced in this country with a se­ manufacturers increased their share from SO The government's trustbusters, however, rious, fundamentally disturbing pattern o! per cent in 1947 to 43 per cent in 1972, ac­ see legislative action as the only remaining economic concentration, a pattern of which cording to the Conference Board.) way to ta.me the conglomerates. giant corporations are a part, a pattern "No one has ever shown that aggregate The term, according to Joseph P. Bauer, a which carries with its social, political and concentration results in anything,'' Weston law professor at the University of Notre competitive threats inconsistent with the argued. Dame, was originally used to describe merg­ nation's fundamental democratic precepts. "In one study I ma.de, I looked at the top ers between two companies whose fields of "We perceive these apparent dangers, yet 100 corporations and found that 53 were business were completely unrelated. But to !eel constrained in reacting to them by a from six industries (auto, steel, petroleum, antitrust officials, the conglomerate merger lack of precise measure. And so our choice aerospace, chemical and electrical products). has become a frustrating combination of is, essentially, whether to watch and wait This suggests some industries req.ulre large "nots." and hope that proof positive will somehow firms. And this ls not peculiar to the United It is not a horizontal merger, such as be­ develop, or to act now in defense of the States. It's the nature of modern economic tween two companies that sell in the same values of diversity on which our economy life in all developed countries. And 1! you market-two shoe companies that do busi­ and our entire society are founded. I be­ take restrictive action against American ness in the same town, for example. ueve we have waited long enough." companies, you are just going to handicap It ts not a vertical merger, such as between 7042 EXTENSIONS OF REMARKS April 2, 1979 two companies that engage in a buyer-seller and filed actions against 8. Three of these Uon or more whose combined assets or sales relationship. An example ls a shoe manufac­ were classified as conglomerate: United total $2 bllllon or more could merge if they turer that sells to a shoe retailer. Technologies Corp. and Carrier Corp.; Occi­ showed that the merger would enhance com­ These are the two types· of corporate merg­ dental Petroleum Corp. and Mead Corp.; petition. The same rule would also apply to ers that the government has most vigorously and Consolidated Foods Corp. and Chef a company with assets or sales of $1 blllion contested. But these mergers accounted for Pierre Inc. or more that sought to acquire a company only 28 percent of all large industrial merg­ The United Technologies case ls stm in controlling 20 per cent or more of a "concen­ ers from 1951to1977. The rest were conglom­ court, Occidental gave up and Consolidated trated market." erate mergers that did not fit easily under has won in U.S. district court. Justice oftlclals estimate that 242 com­ the antitrust statutes. During this period, Antitrust omclals call the merger cases panies would be affected by the $2 billion the government contested barely 2 percent they don't even bother to investigate "pure" limitation. No information ls available on o! all conglomerate mergers. conglomerates. The acquisition last year of the proposal's total impact. Today, according to t he FTC, conglomerate Pet Inc. (assets $488 milllon) by IC Indus­ FTC plan mergers represent 80 to 90 percent o! all in­ tries Inc. (assets $2.6 billion) is a good ex­ dustrial merger activity, measured by assets, ample of a pure conglomerate merger that ls Companies with combined assets and sales compared with 38 percent in 1950. And one contributing to the new big-merger boom. averaging $2 bllllon or more could merge reason for this shift, ironically, is the 1950 Pet sells canned milk, pastries, dairy prod­ only 1! the acquiring company sold subsidi­ Celler-Kefauver Act (64 Stat 1125). which ucts and candy, and operates a. chain of aries whose value equaled that of the ac­ tightened the antitrust laws. liquor stores. IC Industries runs a railroad, quired company. The government's primary anti-merger makes auto brakes, rail switches and hy­ Alfred F . Dougherty Jr., director of the tool is the Clayton Act of 1914 (15 USC draulic pumps, and sells Midas mumers and FTC's Bureau of Competition, said this pro­ 12 et seq.) which outlaws mergers that act Dad's Root Beer, among other soft drinks. posal would provide more flexlb111ty for busi­ "substantially to lessen competition." But The IC Industries-Pet merger ls so "pure," ness and less administrative and court costs until 1950, merging corporations could evade it ls well beyond the reach of the law. The for government. the Clayton Act by arranging acquisitions question now is, so what? A precise measure o! the proposal's impact is not available. In the hypothetical case in through the sale of assets, which turned the ADVOCATES OF CHANGE acquired company into a "shell." The Clayton which the acquired company's assets are The Kennedy b111 and the proposals from $100 milllon, the 1977 Fortune 500 industrials Act applied only to ::;tock acquisitions. The the Justice Department and the FTC would list includes 253 companies with assets above Celler-Kefauver Act plugged that loophole. either prevent or limit the biggest mergers. $1.9 b1111on . Thus some 250 companies could Since 1950, the government's antitrust Under the Kennedy blll, the very blg­ be covered. agencies have sought court support in attack­ those Involving companies with assets or Jn launching his blll, Kennedy pulled to­ ing conglomerate mergers that raised the sales o! more than $2 billion each-would gether a varied constituency in support of posslb111ty of a future lessening of competi­ simply be banned. the notion that the managers of conglom­ tion. But as Shenefield has noted, the courts' Another tier of mergers could go forward erates, for whatever reasons. are no longer as "mixed reviews" have made this "a very dl!­ only 1! competitive or economic benefits accountable as they should be. ficult theory to use." could be proved. The FTC version would Organizations supporting some form of In attempting to show an anticompetitive allow big mergers 1! the buyer sold off busi­ merger control are the Consumer Federation result in conglomerate mergers, the govern­ nesses equal in value to the company ac­ o! America., the National Small Business As­ ment has developed three arguments: that quired. sociation, the United Mineworkers of Amer­ the acquiring company otherwise would have THREE PLANS TO LIMIT MERGERS ica, Congress Watch and the National entered the market of the company it ac­ Grange. Adm. Hyman G. Rickover Jr., the quired (potential entrance); that the ac­ There's more than one way to skin the Navy's nuclear propulsion expert, and Wll­ quired company's competitors would be over­ conglomerate cat, say critics of the current merger trend. lla.m Norris, board chairman of Control Data whelmed (entrenchment); or that the two Corp., also testified in favor of legislative merged companies would engage in recipro­ Sen. Edward M. Kennedy, D-Mass., at the action. cal dealings to the disadvantage of compet­ opening of hearings before his Judiciary The FTC's Dougherty attempted to use itors (reciprocity). Committee on March 8, introduced his own academic studies to document the charge of But court rulings have generally not sup­ b111 (S. 600) to curb large conglomerate undue political power in the hands of big ported the entrenchment and reciprocity mergers called The Small Business Admlnis­ business. Example: economists Lester Sala­ theories. And, in a. key 1974 Supreme Court tration Act, and President Carter, whlle withholding support o! any legislation, has mon and John Siegfried, in their 1977 study, case (U.S. v. Marine Bancorporation Inc.), "Economic Power and Political Influence: the Court set standards of proof for potential allowed the Justice Department's Antitrust Division to propose a milder alternative. The Impact of Industry Structure on Public entrant cases that continue to intimidate the Polley,'' concluded that "larger firm size does government. The Federal Trade Commission (FTC) also seem to yield greater poll tioal power." The proposed merger (state regulations presented its scheme to the Judiciary Com­ Dougherty also cited Columbia University eventually kllled it) involved Marine Ban­ ml ttee. All three versions would limit mergers by size rather than by their Ethti­ La.w School's Harlan Blake, who holds that corporation's purchase of the Washington the big conglomerates enjoy "one of the most Trust Bank of Spokane. Wash. Washington competitive effect. Following are the three potent economies of scale" in their a.b111ty to Trust was the third largest bank in Spokane, proposals and their estimated impact on business. lobby government. To 111ustrate, Dougherty while Marlne's subsidiary, the National Bank noted General Motors Corp.'s successful let­ of Washington, operated 11 branches in the Kennedy bill ter campaign to 1.3 million shareholders, state but none in Spokane. Two companies with assets or sales of more 13,000 dealers and 19,000 sup!>liers in getting The case was au. example o! a. less "pure" than $2 b1llion each could not merge at all. And there were other anecdotes: conglomerate merger becau!'=e the companies' This would cover the nation's rtop 128 indus­ Ralph Nader reported that after Mobil ac­ activities were not entirely unrelated. They trial corporations, according to the 1977 quired Montgomery We.rd, the retail com­ operated in different markets, but both were Fortune 500 Ust. pany's "strong support" for a consumer pro­ banks. The antlcompetltlve test was whether Companies with assets or sales of more tection agency vanished. Rickover, citing his the Marine bank would have opened its own than $350 milllon ea.ch could merge only 1! 40 years of dealing with defense contractors, branch in Spokane. they showed that the merger would enhance told how a Washington lobbyist representing But the Court ruled that the government, competition or produce "substantial em­ a large conglomerate tried to block his re­ to block the merger, had to show that clencles," or 1! the acquiring company sold appointment, even by telephoning the Secre­ Spokane needed another bank, that Marine subsidiaries equal in assets or sales to those tary o! the Navy while Rickover was in his would have opened its own branch there, and o! the acquired company. oftlce. that the new branch would succeed. Under The same rule would also apply to any company with assets or sales of more than "If merger madness continues at its current t""ec;e standards, the merger would have been rate, today's Fortune 500 wlll be shriveled allowed because the government could not $350 milllon that sought to merge with a smaller company controlllng 20 per cent or down to the Fortune 5," quipped Kathleen F. offer sumclent proof. O'Re11ly, executive director of the Consumer Since tl:>en, the government has not won more of a. "significant market"--0ne with $100 mlllion or more in annual sales in which Federation of America.. a single litigated conglomerate merger case. Control Data's Norris, whose company The box score from 1964 through 1977 for the four companies control 75 per cent of sales. The Judiciary Committee's staff director, ranked l 70th on Fortune's Ust of the 500 government ls 11 cases won, 22 lost, and 12 of largest industrial firms for 1977, spoke of an­ those losses occurred since 1974. David Boies, estimates that up to 900 com­ panies would be covered by the entire blll. other perceived evil of large conglomerate The most recent surge of large conglom­ "To be absolutely precise is very, very ha.rd," mergers-the harm to innovation. Said Nor­ e'." ate mergers is now causing antitrust of­ he said, because "it's a moving target with ris, who has been on both sides of the merger ficials to throw up their hands in despair. mergers and spinoffs going on all the time." game: "It ls not generally understood that "Under the present law, we have no basis smaller companies a.re the best innovators, even to open a preliminary investigation," Justice proposal that they originate a majority of new prod­ said a Justice Department antitrust oftlcia.l. There would be no outright ban on ucts, processes and services that provide new Last year, for example, the department mergers. jobs. Immediately after a takeover, an tn­ "looked at" 1,479 mergers, investigated 91 Companies with assets or sales of $100 mil- nova.tion-stlfilng process sets in.'' April 2, 1979 EXTENSIONS OF REMARKS 7043 Norris, who objects particularly to forced TO BALANCE OR NOT TO BALANCE elected-to do a Jerry Brown and embrace takeovers, did noit endorse the Kennedy bill such a proposal. but suggested instead a procedure that would But this is one case where the majority ls require a "premerger social impact analysis" HON. FORTNEY H. (PETE) STARK simply wrong-not in seeking some curbs on giving stockholders the right to decide government, for that is their inherent right whether or not to merge. OF CALIFORNIA in a democracy-but in seeking to do so by IN THE HOUSE OF REPRESENTATIVES putting the federal government in a fiscal It is not all clear what form the final bill straitjacket. This ls a clear-cut case where will take when it leaves the committee. Both Monday, April 2, 1979 Kennedy and Sen. Howard M. Metzenbaum, responsible political leadership consists in D-Ohio chairman of the Antitrust and Mo­ o Mr. STARK. Mr. Speaker, those of us leading voters out of the .valley of error and nopoly Subcommittee, said the hearings' pur­ in Washington representing our people seeking better and sounder ways to achieve their goals. pose is to generate a consensus. back home in Congress have heard the Since the major thrust for the balanced­ TABLE 1.-The big ones get bigger. (Industrial word-the people want a balanced Fed­ budget amendment (and some of its half­ corporations with assets over $1 billion, in eral budget. Many of us believe that the siblings) comes from a misinformed public, 1977 dollars) idea of a balanced budget cannot be it may be useful to examine some of the fis­ separated from the people's determina­ cal fallacies that seem to underlie public $1 billion $5 billion $10 billion tion to stop inflation dead in its tracks thinking on this subject. 1955 ___ _ 65 8 2 even though we know there are many Fallacy Number One: "Individuals, fam­ ilies, and households have to run a balanced­ 1970---- 152 22 10 other factors causing inflation. The peo­ 1977 ___ _ 193 26 12 ple want inflation controlled and they budget-so why shouldn't Uncle Sam?" want this Congress to do it now. People forget that typically when they buy a Source: Federal Trade Commission. car or a boat, or, most obviously, a house, Some of us also recognize the harm they are doing anything but running a bal­ Passage o! any anti-merger bill this session that can come from writing an economic anced budget. At times, they run deficits­ was hurt, however, when President Carter theory into our Constitution. We oppose often huge deficits-relative to current in­ backed away from the issue earlier this year. the idea of a constitutional amendment come. So they are asking Uncle Sam to ad­ The President had planned to mention anti­ here to a rigid and austere standard that conglomerate legislation in his January State that would mandate a balanced budget. The call for a constitutional convention they don't observe themselves. of the Union address, but deleted it after Fallacy Number Two: Closely related to Stuart E. Eizenstat, his domestic affairs to achieve such an amendment is a ri­ the first fallacy is a second one that runs assistant, received a letter from the National diculous proposal that ignores over 200 something lilrn this: "We consumers (home­ Association o! Manufacturers (NAM) years of experience with our present owners, corporations) pay back our debts, strongly opposing any merger controls. The constitutional system. but Uncle Sam just keeps piling up his debts NAM's general counsel, Thomas J. Houser, without end." argued in the letter than an anti-merger law The constitutional question aside, a balanced budget is an important goal to The surprising-to some even jolting­ could worsen infia ti on and make American truth is that in the period since World War products le~s competitive abroad. be pursued now. By using the relatively new congressional budget procedures we II, the federal debt has been the slowest On the eve of the Kennedy hearings, Ad­ growing major form of debt. As the follow­ ministration officials announced that Carter have made progress in the right direc­ ing table shows, the federal debt today ls was withholding support of the Justice De­ tion in the past 2 years. We can achieve less than three times the size it was in 1950, partment's anti-merger proposal, which had fiscal responsibility without the strait­ while consumer installment debt is nearly 14 been circulating throughout the Administra­ jacket of a constitutional amendment times, mortgage debt 16 times, corporate debt tion for several months, but allowing Justice 12 times, and state-local debt 13 times. to testify on its own. In doing this, Carter by eliminating waste and inefficiency sidestepped an Administration split over the and by ending outmoded Government Even with the unprecedented run-up of issue, at least temporarily. The Treasury and programs and unfair tax policies. federal debt in the face of two recessions ln Commerce Departments, along with the Of­ Two eminent economists, both advis­ the 1970s, the doubling of that debt since fice of Management and Budget, object to the ers of Presidents on economic issues 1970 ls just about matched by the rise o! Justice Department proposal. state-local debt, while corporations, con­ and both distinguished professors of sumers, and homeowners have expanded their TABLE 2.-The Federal merger challenge. economics recently contributed thought­ debt at a considerably faster rate than (Large industrial mergers, 1951-77) 1 ful articles to the editorial page of the Uncle Sam. Wall Street Journal. On Friday, March Postwar growth of major forms of debt Com- 16, Walter W. Heller wrote "Balanced bined Budget Fallacies." The preceding Mon­ [In billions) assets Challenged day, March 12, Herbert Stein contrib­ Ratio of Num- (bil- by Federal 1978 to ber lions) Government uted "To Balance or Not to Balance." These essays are important contribu­ Type of debt 1950 1978 1950 Horizontal and tions to the national balance-the-budget Consumer installment_ $22 $299 13.6 vertical ---- 663 $36 152 (22.9%) debate now going on. They ought to re­ Mortgage (1-4 family Conglomerate_ l, 669 84 38 (2.3%) ceive wide circulation. homes) ------45 732 16.3 Corporate (non-fin'cl) _ 71 834 11. 7 Total __ 2, 332 120 190 (8.1%) Mr. Heller concludes his article with the following words: State-local ------22 1 390 13.2 Federal (in hands of 1 Given that the constitutional approach is Acquired company had assets of more public) ------217 611 2.8 than $10 million. unwise, unworkable and unworthy of demo­ GNP ------288 2, 110 7.4 cratic self-government, one hopes that the Source: House Judiciary Committee. White House and Congress will work out a i Estimate. Without strong White House support, pas­ statutory solution that wm be responsive to Sources: "Economic Reports of the Presi­ sage of any anti-merger bill appears unlikely. the public will without imposing destructive dent"; "Economic Indicators"; Federal Re­ The issue is too muddied by lack of data shackles on their ability to govern. serve System Flow-of-Funds estimates. and a split in academic views, and the com­ mittee may be too burdened with pressing We here in Congress must turn Mr. None of this is meant to justify the pres­ legislative proposals to deregulate the truck­ Heller's hope for responsible--and re­ ent level of federal deficits or debts nor to ing, rail and insurance ind ustries. sponsive-congressional action into a suggest that the federal debt poses no prob­ reality. Inflation is the major enemy and lems. But the foregoing figures do serve to Rodino's House Judiciary Committee has put the federal debt in perspective. conducted some preliminary studies but has we must be determined to halt it. not yet scheduled any hearings. At this point, The articles follow: Fallacy Number Three: "State and local the initiative rests with the Senate panel. governments have to live by the balanced­ BALANCED BUDGET FALLACIES budget rule, so why shouldn't Uncle Sam?" "This is going to have to be a propa­ (By Walter W. Heller) ganda job," admitted a Senate committee True, states and localities have to bal­ In an era of dissatisfaction with big gov­ ance their budgets annually, except for aide. "We have to convert public of ernment, high taxes, and stubborn inflation, big government to big business, but it's hard capital outlays, for which they can borrow. it ls not too surprising that the Gallup Poll But federal budgetary accounting throws to know where our constituency is. Our shows a six-to-one majority favoring a bal­ current and capital outlays (as it should) problem ls that these same people don't trust anced-budget amendment to the Constitu­ into the same pot. So balancing the federal the government to do anything about it, tion. And it must be a strong temptation for budget means matching total outlays with either." e elected officials-if they want to be re- current tax revenue, which ls quite differ- 7044 EXTENSIONS OF REMARKS April 2, 1979 ent from the balanced-'budget concept for cipline and responsib111ty into the budget The problem ls not that there are strong states and localities. process. In other words, the mechanism for arguments on each side of this question. The Let me underscore another decisive di!· getting the budget under control is already problem rather is that the arguments on both ference between state and federal budget in place and it's working. sides are so weak. impacts: A state or loeoal budget can be -Both the White House and the Congress I will offer, dogmatically, a summary of baJanced by tax h ikes or spending cuts have heard and heeded the message implicit reasons for not being dogmatic about either without jairring the whole U.S. economy. in Proposition 13, calls for constitutional side of the argument. The federal budget cannot. If the national budget limits, and the like. Whether one WHY BALANCE THE BUDGET? economy starts to slide, joblessness rises, likes it or not, budget austerity ls the po­ income and profits fan, and the federal litical order of the day. 1. The people want the budget balanced. budget automatically goes into deficit as Fallacy Number Six: "The balanced-budget Polls show that a large majority o! the revenues shrink and spending rises. Try to mandate is a simple, sure-fire way to force the American people "favor" a balanced budget. baJance it by boosting taxes or forcing cuts White House and Congress at long last to But this has been continuously true for the in spending, and the result wlll inevitably match spending and tax revenues." past forty-five years. During this period the be to draw that much more purchasing The simple truth is that this simplistic ap­ budget has been balanced only eight times. power out of an already soft and sluggish proach is beset with simply prohibitive dif­ The people have not elected government offi­ economy. ficulties of definition, administration and cials who would balance the budget, or This would send the economy into a deeper evasion. turned out of office those who ran deficits. If tailspin, thereby throwing more people out A mandate to balance taxes and expendi­ the people "favor" balancing the budget, they of work, further cutting tax revenues and tures first has to define them. Does spend­ apparently don't care very much. boosting unemployment compensation, food ing include outlays of Social Security and 2. Deficits cause inflation. But deficits stMnps, and similar entitlement expendi­ highway trust funds? (It didn't until 1968.) don't cause inflation all the time. We have tures, thus throwing the budget even more Does it include lending activities? If not, had deficits almost all the time since 1929, out of whacK. A dog cha.sing its own tall moving things from expenditures into loan and haven't had inflation all that time. comes to mind. programs would be an inviting loophole. Whether deficits are inflationary or not de­ Fallacy Number Four: "Unlike private Imagine the Founding Fathers two centuries pends on their size, their timing, their rate and state-local deficit financing, federal ago trying to draw a dividing line between of change and how they are financed. The deficits are a major, perhaps even the ma­ "on-budget" and "off-budget" expenditures. currently fashionable view of the connec­ jor, source of inflation." Both analysis and No less an authority than House Minority tion between deficits and inflation is that evidence fall to support this proposition. Leader John Rhodes has noted that "it would deficits cause monetary expansion which ts Except where federal deficits pump more be so easy to end-run it." inflationary. However, it is not clear that purchasing power into an already prosper­ Administering the mandate would be a deficits have been a major cause of exces­ ous or overheated economy, they do not feed nightmare. In January each year, the Presi­ sive monetary expansion in the past, or inflation. When the economy is sle.ck or dent submits a budget for a fiscal year that that deficits need to have this effect in the in a recession, when there are idle work­ ends eighteen months later. Given the unex­ future. And if this ls the problem, the ap­ ers and idle plants and ma.chinery to be pected twists and turns of the economy, reve­ propriate remedy may lie in the monetary activated by additional demand fo't" goods nues may well fall below the forecast path. system rather than in the budgetary system. and services, tax cuts or spending hikes that Imagine the scramble to adjust the budget as 3. Deficits cause, or permit, excessive gov­ enlarge the deficit help the economy get revenues misbehaved or unexpected shifts ernment spending. The argument ls that back on its feet. occurred in the costs of farm programs. Med­ government will tend to spend too much 1f it iin other words, there are both destruc­ lcade, cost of living adjustments in Social does not have to count the costs of its ex­ tive federal deficits and constructive deficits, Security benefits, and so on. penditures fully, and that it would have to depending on the state of.the private econ­ It does not take too much imagination to count the costs if it had to raise all of lts omy. What we should seek ls fiscal dis­ foresee Congress, caught in the balanced­ funds by taxation. There are several prob­ c1pline--avo1dance of waste, inefficiency, budget vise, shoving some expenditures off lems with this. One is that the "discipline" boondoggling and unnecessary government into the private sector (e.g. , by requiring argument assumes that there is a corres­ programs--but not at the cost of strangling private industry to support laid-off workers) pondence between a Congressman's percep· the federal government in its attempts to or onto consumers by relying more on high­ tion of his constituents' aversion to higher serve as a. balance wheel for the national er farm price supports and acreage set-asides taxes and the real costs that government economy and an instrument for avoiding and less on federal deficiency payments. spending imposes on the society. This cor· that greatest of economt.c wastes, namely, So many exceptions, exclusions, and spe­ respondence is loose, at most. idle workers, machines and factories. cial emergency provisions would be neces­ But even at its best this ls not an argu­ Even a c:µrsory inspection of the data on sary to make the amendment workable that ment for equality of total spending and total deficits and inflation shows little relation it would no longer be meaningful. The draft­ tsxes. It is an argument for balancing taxes between the two, for ex.ample: ers of the amendment would find that they and expenditures at the margin-where de­ -Milton F'rledman reminds us that 1919- were writing a prescription for congressional cisions are made. For example, we may take 20 produced "one of the most rapid in­ action, not a constitutional mandate. A it as given that federal expenditures wlll flations" in U.S. history when the budget meaningful amendment would not be work­ never again be under $400 btllion. Then the wa.s running a large surplus, while 1931-33 able, a.nd a workable amendment would not discipline requirement would be met by say­ saw "one of the most extreme deflations we be meaningful. ing that we should collect one dollar of taxes had in history" when "the federal govern­ Even if some magic formula could 'be found for e·.'ery dollar by which expenditures exceed ment was running a deficit." to hold the government's nose to the bal­ $400 billion. -From 1959 to 1965, federal deficits were anced budget grindstone, it would be an af­ 4 . Deficits absorb private savings that would the order of the day, yet price inflation was front to responsible democratic government otherwise flow into investment, and deficits little more than 1 % a year. to do so. The es~ence of that government ls therefore reduce the rate o! economic growth. -In the face of huge deficits in 1974-76, to adapt economic, social, and other policies This argument assumes, in the first place, inflation dropped from over 12 % to less to the changing needs of the times and the that private savings is given, or at least that than 6%. changing wm of the majority. rt is the job of a deficit does not generate an equal amount Fallacy Number Five: "Well, even if defi­ the Constitution to protect basic human of private saving. This assumption has been cits aren't as bad as we thought, the federal rights and define the framework of our self­ contested by some economists. Moreover, budget ls out of control, and the only way to governance. Taking the very stuff of demo­ there is no law of nature or economics which get it under control ls to slap some kind of cratic self-determination out of the hands tells us that the right amount of private in­ a constitutional lid on it." of legislative bodies and freezing them into vestment is the amount of private saving. Once again, the facts run to the contrary. the Constitution would not only hobble our In an economy that is rapidly becoming As a proportion of the gross national prod­ ab111ty to govern ourselves but dilute and richer for a variety of reasons, one could uct, the budget is being reduced from 22.6 cheapen the fundamental law of the land. argue that it is as reasonable for the govern­ percent in 1976 to 21.2 percent in 1980. As Given that the constitutional approach is ment to draw funds out of the privat~ sav­ against 12.2 percent annual increases in unwise, unworkable and unworthy of demo:. ing-inve-;tment stream through borrowing spending for 1973-78, the rise from 1979 cratlc self-government, one hopes that the as to draw fun<'s out of the private consump­ to 1980 wlll be only 7.7 percent. And accord­ White House and Congress will work out a tion stream through taxing. ing to the Congressional Budget Office staff, statutory solution that will be responsive to Also, it should be noted that if the govern· President Carter's propo!;ed $531 b1111on the public wlll without imposing destructive ment makes expenditures which raise the budget for 1980 falls $20 b1llion short of the shackles on their ab111ty to govern. growth rate this argument woulrt not bar fi­ amount that it would cost simply to main­ nancing such expenditures by deficits. tain current services under current law. To BALANCE OR NOT To BALANCE WHY NOT BALANCE THE BUDGET? Quite apart from the numbers, the popu­ (By Herbert Stein) While the arguments for balancing the lar clamor for "getting the budget under The unpoetic but Hamlet-like title of this budget leave many uncertainties, this ls also control" seems to ignore two important facts: essay reflects my true uncertainty. Whether true of the arguments against balance. -For the past four yea.rs, the Congress has to bear the ills of the deficits we have or fly 1 . Full employment cannot be achieved been operating under a new budget proce­ to the balanced budgets whose consequences without a. deficit. Thls persistent notion ls dure that has brought vastly more dis- we know not-or have forgotten? without emp1rlcal foundation, and once it ls April 2, 1979 EXTENSIONS OF REMARKS 7045 accepted that the money supply matters at et were continuously in balance, we would NOGROWTHISM EQUALS all it is without theoretical foundation, since have to attack the problems of the expendi­ STAGFLATION there is always some money supply that wlll ture level a.nd the taxation level, and there is generate full employment even if the budget much room for improving policy and proce­ is on balance or in large surplus. dures in tJhat regard. HON. STEVEN D. SYMMS However, the general negativism of the 2. The a.b1lity to run a deficit of the proper OF IDAHO size on the proper occasions increases the gov­ preceding argument does not mean that we ernment's abillty to stabi11ze the economy. are unable to find some rules for deficits or IN THE HOUSE OF REPRESENTATIVES This proposition is being more and more surpluses which are superior to the mixture Monday, April 2, 1979 questioned for several reasons. There is doubt of poll tica.l expedience and economic fine­ whether variations in the size of the deficit tuning by which we have been living. The • Mr. SYMMS. Mr. Speaker, I have been or surplus affect aggregate demand, and also combination of inflation, low capital invest­ concerned since coming to the Congress whether the effects on aggregate demand in­ ment and high government expend.itures about the devastating impact on our fluence the real variables, output and em­ yielding doubtful benefits, from w'hich we are economy and indeed our way of life by ployment, or only the rate of inflation. At a suffering, indicates th.at the need for better rules of fiscal policy is urgent. And these a small but growing number of no-growth more pragmatic level, there is great skepti­ extremists. As many of my colleagues cism about the ability of the government to same conditions suggest that appropriate manage its deficits and surpluses in a way rules would include elements of the budget­ know, these no-growth extremists seem that contributes to stability rather than to ba.lanoing idea in some form. to be proliferating their numbers in the instability. These rules would not be simple--as ''bal­ Nation's Capital as they chalk up more 3. Unavoidable fluctuations in economic ance the budget" only seems to be-but and more legislative and regulatory vic­ activity affect revenues and expendit ures in neither would they be incomprehensible. I tories. These extremists have about as believe that they might include a vs.rt.ant of such a way that even if the government plans much interest in promoting energy de­ to balance the budget a deficit may result. the idee. Qf balancing the budget.a.thigh em­ ployment, advanced by the Committee for velopment as Billy Carter has in promot­ Of course, if the government ma.de its tax Economic Development in 1947, and modern­ ing soda pop. They wield enormous and expenditure decisions so that there would power, many having left Nader's Raiders be a large surplus under the forecast eco­ ized primarily to take account of the fact of inflation. to join Carter's Invaders. The successes nomic conditions, there would be a cushion However, it is not my point here to advance to avoid a deficit even if the economy fell of the various extremist groups have a specific proposal in this reg.a.rd. It is only been attributed to the so-called environ­ moderately below the forecast pat h. How­ to suggest that we need to get beyond the ever, there a.re probably more realistic solu­ shouting-match between the fundamental­ mental movement. tions to this problem. ists who keep repeating "balance the budget" Is it truly the protection of the environ­ One would be to state the budget-balanc­ and the economist-politicians who say, ment that these groups seek to accom­ ing requirement in terms of the budget plan, "Leave it to us and we will take ca.re of the plish or is it simply to deindustrialize this rather than in terms of the budvet out come. budget." If the current furor over budget­ great Nation of ours? I believe without Also, the problem ls less acute if the require­ ba.lancing should settle down to a construc­ question, it is the latter. How did we allow ment is not that the budget be balanced each tive search for a synthesis of wha.t ls valid in ourselves to be duped into believing that year but that it be balanced over several both viewpoints, it will h.a.ve been most val­ years. uable.e we were protecting the environment when 4. Balancing the budget will require that in fact we were aiding and abetting the we spend less and/or tax more than we would destruction of a standard of living en­ otherwise have done. This is obvious, but it DEPRF.cIATED PAPER CURRENCY vied by the free world? The following it is an objection only if it is true that a) speech given by Mr. James R. Muhm be­ there are some expenditures worth borrowing fore the Northwest Mining Association in for but not worth taxing for, orb) that some HON. RON PAUL Spokane, Wash., on October 3, 1978, is an taxes are "worse" than deficits. Many people OF TEXAS eloquent dissertation which answers that take one or both of these positions. Undoubt­ IN THE HOUSE OF REPRESENTATIVES edly there is some truth in both of them. The question. I commend this speech to my real question is whether the political process Monday, April 2, 1979 colleagues for their edification and en­ lightenment: can be trusted to live with this proposition • Mr. PAUL. Mr. Speaker, Daniel Web­ and not make it an excuse for irresponsible ster was not only a great statesman and ENVIRONMENTALISM-A SECOND LOOK behavior. (By James R. Muhm) 5. A requirement that the budget be bal­ orator, he also knew his economics. In these days when inflation is under­ In getting ready to take a second look at anced would be easily and widely evaded. environmentalism and its attendant regula­ Government receipts and expenditures as mining the working people of our coun­ tion, it probably· wouldn't hurt to recall our those terms a.re now defined in the budl<'et are try-an inflation which is a direct result first look-how did we get here, anyway? only two of the many ways in which the of Federal policies-Mr. Webster's clear Pat Crombie, President of California's Mother government can influence the allocation of and impassioned voice comes to us across Lode Miner's Association, probably summed resources in the economy. "Off-budget" the years. it up best when he wrote in the California. transactions are the most obvious among the to Mining Journal: other ways available. Probably much more I would like to call my colleagues' "How did we get in such a mess? It was important are regulations which require pri­ attention Daniel Webster's ringing words on a depreciated pa.per currency. May we easy! For yea.rs we went along prospecting vate parties to make expenditures of kinds with a burro, herding sheep and cattle on specified by the go,·ernment, as for environ­ all take them to heart: public lands with pretty mu~h everyone mental purposes, or requiring employers to A disordered currency ts one of the great­ tending his own business. But someone got provide certain pension or health benefits to est political evils. It undermines the virtues the bright idea of building roads to give workers, and so on. One can argue that limit­ necessary for the support of the social sys­ better access. Another wanted to improve ing the ability of the government to exert its tem, and encourages propensities destructive the spring to get up more water. Some de­ influence overtly through the budget will to its happiness. It wars against industry, cided we should uproot trees and reseed to force the government's influence into less frugality, and economy, and it forsters the give more grazing land. Sheepmen wanted visible and less efficient forms, which would evil spirits of extravagance and speculation. more sheep, fewer cattle. Cattlemen wanted be a loss. Of all the contrivances for cheating the la­ more cattle, fewer sheep. Miners didn't want On the other hand, limitation of the gov­ boring classes of mankind, none has been either one. They all demanded something be ernment's options would probably reduce the more effectual than that which deludes them done. States with public lands, especially total scale of its activities, and the options with paper money. This ls the most effectual western states with lots of public land, asked outside the budget a.re probably less infla­ of inventions to fertilize the rich ma.n's field the federal government for help. tionary than financing through the conven­ by the sweat of the poor man's brow. Ordi­ The Department of Interior was born. tional deficit. nary tyranny, oppression, exessive taxation, Soon there wa.s Forest Service and Bureau of One cannot draw strong conclusions from these bear lightly on the happiness of the Land Management, the Taylor Grazing Act the weak arguments I have briefly covered. mass of the community, compared with and multiple use concept. Grazing permits, Probably the strongest conclusion one can fraudulent currencies and the robberies com­ oil and gas lea.sing, and mineral royalties find is to make no irrevocable commitments. mitted by depreciated pa.per. Our own his­ were collected to pay the bill. Everyone was This is, in my opinion, an argument a!?'alnst torv has recorded for our instruction enough, happy . . . almost. Along ca.me the recrea­ enacting a constitutional amendment in an and more than enough, of the demoralizing tionists. An a.ffiuent society demanded access area about which we still know so little. tendency, the injustice, and the intolerable to all public lands. They included people •Another conclusion ls th.at one cannot oppression on the virtuous and well dis­ from all walks of life, including those above hope to achieve all desirable goals for the posed, of a degraded paper currency, au­ who had traditionally used public lands. The federal budget by operating on whether the thorized by law, or any way countenanced bureaucrats responded. They multiplied budget ls balanced or not. Even if the budg- by government.e quickly to meet the demands of ea.ch diverse 7046 EXTENSIONS OF REMARKS April 2, 1979 interest. They were media.tors, they made advocat es, and socialistic political groups heritage. Although bothersome, environ­ plans, mapped, reseeded, improved water, t h at has become far more influent ial in t he mental extremists, in themselves, don't hurt recorded geologic information. They listened. opinion-making strata than their numbers us m uch. They keep us alert! They promised something for everybody. Did warrant." There is one other identifiable group, it matter that less than 25 cents on the dol­ The coalition of which Congressman however, which was neglected in Congress­ lar was returned to the land? Symms speaks works with differing motiva­ man Symm's enumeration. That is the group Since everybody was going to the bureau­ tions and purposes. One element of the of influent ial, largely wealthy individuals crat, there was little discourse between t he coalition is built on pessimism. I ts advocates and groups who provide a great deal of the diverse interests. The promise was always see da n ger in t radit ional policies of growth, monetary and political support of the ac­ there "just as soon as we get the funding." development, and higher energy consump­ tivist groups. Some overlapping of constitu­ Innocently we sat back waiting year after tion. Some a re convinced t h at t he world ency is obvious but inclHded here are the year, smug that our pet project would be m ust enter a "st eady-st ate" condition oi liberal politicians who hope to profit po­ approved in the next allocation. If it didn't it popu lation, resource u t ilization, and accept­ litically; the gullt -ridden individuals who was the fault of the administration or legis­ a ble pollution, even if t he st eady state must are trying, somehow, to at one for the past lature, not the bureaucrat. Each year the be imposed by coersion and force. Others behavior of their source of family wealth; bureaucracies grew stronger. Soon they were simply yearn for a ret urn to what they mis­ and the large, tax-exempt foundations which bigger than any other industry. They began t akenly t hink was a romantic way of life in operate in an international world of their drafting legislation. They became experts !n t imes past. These roman tic times were really own. We should also mention those few cor­ all things dealing with public lands. Their c. t ime of baclc-breaking hard work, however, porations who attempt, in an unknowing legislation became law. New bureaucracies and they were certainly not pollution free. way, to imµrove their public image by sup­ were formed: EPA, ERDA, FEA, OSHA, and Nevertheless, to the philosophical no­ porting what they perceive as legitimate many others. More legislation was passed, growthers, development-especially the de­ public issues. Without all of these major more laws, more rules and regulations. How velopment of cheap energy-is the enemy; sources of financial support, the no-growth­ else could the legislation satisfy the demands development is the thing to be opposed, ers, the truly important threat to our in­ of the many special interests? Everybody slowed down, and defeated. dustrial society, would be ineffective. indeed. wanted a handout. So what if we only got Another element of the coalition, without So, we have examined and described the two bits out of a dollar, so long as I get doubt, pursues a continuance of the age­ various elements making up the coalition mine?" old struggle for a worldwide socialism. Some which is so successfully inhibiting resource I think Mr. Crombie is correct in how we of its advocates hope for the power that development in the western world today. came to enter our regulatory jungle. But, socialism bestows on the ruling bureaucrats; Now, in what fashion does it work? now a new, more sinister turn has been more are driven by humanistic, but no less The most effective tactical weanon in their made. For 15 years now, we have seen the dangerous, reasons. The United Nations campaign has been slow-down and stretch­ regulators, always, it seems, justifying their newspaper, Development Forum, carried out. The no-growthers know very well that actions in the name of environmentalism, t his clear message from Ph111ippe de Seynes. the one thing which can k111 a project ls to devise one strategy after another !or inhib­ "What st arted as ecological survival ls now keep the money meter running while the iting development and growth. Cleaner air·, distinctly moving towards social change." project goes nowhere. No manager can justify safer water, prettier scenery-on and on and Probably most widely known as a guid­ that type of inactivity to his superiors or on. And, worst of all, we have been led, ing beacon for the on-going change to a his stockholders. These campaigns of slow­ pushed, and manipulated into using the "post-industrial society" is the Club of down and stretch-out are waged at all bu­ word environmentalism when we really Rome. This group of a hundred or so in­ reaucratic and political levels, as well as by should be speaking about the concept of no­ ternational figures was named for the place no-growth activist groups. The nationally growth. And this, I believe, is cause for a of its first meeting in 1968. The Club's best famous example of these tactics was at second look. For environmentalism and no­ known work to date is a rather dull report Kaiparowits. growthism are not the same. Use of the word called Limits to Growth, A Report on the Another effective weapon in the campaign environmentalism tends to confuse and ob­ Predicament of Mankind. This report, pre­ has been land use planning, planning on all scure the real problem-the problem being pared by Potomac Association, states cate­ levels of government-federal, state, and that a number of people and groups these gorically that, "economic as well as popula­ local. But state and local planners, mind you, days are opposed to, and are interfering at tion growth must be stopped cold sometime are permitted to execute their authority every opportunity with the continued, sus­ bet ween 1975 and 1990." The report goes on only when the locals prove to be more t ained industrial growth that is vital for the to extend an invitation to "join us in under­ stringent than their federal overseers. country's survival. We are all concerned with standing and preparing for a period of great B1llings County, North Dakota, requires that and care about our environmental health transition-the transition from growth to a comprehensive "snow removal plan" be and beauty. We should not need to even say global equ111brium." filed before any mechanized operation can it. But, to our present sorrow, we suffer at­ Another report to the Club of Rome, re­ begin. In Oregon, countries are given op­ tacks on our industry and we find ourselves assuringly titled Reshaping the Interna­ portunities to screw tighter, but not loosen, on the defensive because we oppose "envi­ tional Order, plainly calls the wished-for new state land use decisions. ronmentalism." In the public mind, this order "humanistic socialism." This report State land use planning laws are being in­ places us on the wrong side of environmental argues for a transfer of the world's real re­ stituted across the nation. Under these land quality-we, the bad guys, are trying to de­ sources. An example; "F 'nancial aid (to the use plans, states establish special districts, stroy nature. lesser-developed count ries) needs to be in­ corridors, etc. which encompass private prop­ But, emphatically, our problems are not creased subst antially, and its fl.ow made pre­ erty as well as public. California's private wit h environmentalist s, but wit h the advo­ dictable, continuous and increasingly as­ beaches are controlled this way. Colorado cat es of no-growth. In the late 1960's it be­ sured." Another; "the role of gold should be and Oregon have such laws. In Pennsylvania, came fashionable in some quarters to pursue diminished, new international liquidity for example, owners of private property t he idea that economic growth was old hat, should be distributed in an equitable fashion, within the Youghiogheny Scenic Corridor t hat growth was inconsistent with the emphasizing the needs of developing coun­ must apply for and receive planning author­ newly-discovered goals of clean air and clean tr;es." As Eugene Guccione, former editor of ity approval before any building or structure water. Eugene McCarthy in the 1968 presi­ MINING ENGINEERING, told the Wyoming can be constructed, altered, painted, or re­ dential campaign attracted much o! his Mining Association two years ago, "the !unc­ placed. It is not difficult to perceive that, as "children's crusade" with this theme. The tion of the new environmentalism, the new the real authority and control of property ls no-growthers have now successfully infil­ feudalism, the policy of no-growth-it all thus transferred, our historical concept o! trated, used, and controlled once well­ has to do with an ideology, the ideology of private property is changed into a system of intentioned recreation and conservation collectivism." "new feudalism." The problem with the old groups. And they have gained such devastat­ We have examined two of Congressman feudalism is that it stifled individual lib­ ing power that they are literally crippling Symm's three elements making up the coali­ erty, productivity, and self-government. And industry and the country. tion of no-growthism. We have looked at that is also the problem with the new feud­ Our second look at our problem, then, the sources of inspiration for their vigorous, alism. should be sharp enough, and discerning skillful, and so-far successful campaigns­ This campaign against industrial develop­ enough to allow us two things : misgulded sentimentalism and a wish to ment in general, and mining in particular, ls To identify and recognize our real oppo­ retreat from the real world on the one perceived by us as a vastly expanded and n~nts , and hand-a concerted and long-continuing 111ogical complex of regulation. It is a way To perceive their various purposes and dr1ve !or world socialism on the other. The of drawing the lifeblood of industry, little­ goals. third element, as Mr. Symms observes, is by-little, so as not to provoke open violent For only then can we act effectively to comprised of environmental extremists. resistance. Fortune magazine defines this preserve our marvelous system of free-enter­ Every group has its zealots and this group condition, along with other socialistic meas­ prise capitalism and its unsurpassed capacity simply suffers from 11mlted perception and ures, as "social drag,"-a good term. Fortune for satisfying human needs. muddled values. These include the aberrant describes it as, Congressman Steve Symms of Idaho knows purists who object to mining because it "the combined effects of the excessive t he nat ure of no-growthism . He says, disturbs nature's balance, yet who object to costs, inemclencles, and disincentives that "There exists a kind of 'New Left' coali­ the disturbance of old mining camps be­ government imposes on economic activity in tion o! environmental extremists, no-growth cause these places are part of our cultural the private sector. April 2, 1979 EXTENSIONS OF REMARKS 7047 welfare payments and unemployment ben­ times seem. In some cases, the no-growth years ago. Since that time, he has served efits so generous that they erode incentive activists are functional cnly by virtue of in many capacities and along the way to look for work; their ab111ty to attract good pref?S coverage. made thousands of friends. busybody regulations; In Kalgoorlie, Western Australia, a fearsome Anyone who is fortunate to know Joe bureaucratic overstaffing; no-growth g.roup turned out to have a total government bias toward labor unions." membership of four persons-two from the Bartlett knows the great love and ad­ "Social drag," according to Fortune, "ls same family. miration he has for this House. I have both, and at the same time, inflationary and To succeed, we must determine who are had constituent after constituent say depressive." It creates stagflation. our opponents and what are their motives. that the entire place seemed to come And it needs to be remembered, after all, We must become smarter, more alert, more alive when Joe Bartlett was explaining that "regulation" ls simply another word for adaptable, and, most of all, more aggres­ it to them. "police power." This overwhelming concen­ sive in defending the moral and material To Joe and Ginny and their wonderful tration of police power constitutes a sort o! attributes of free-enterprise capitalism. family, I express my sincerest thanks regulatory neutron bomb. The end result wm To acknowledge the individual weaknesses and extend to Joe many happy years of be a deb111tated emaciated shell of a once and failures of indust rial development ls mighty industrial society. The buildings and far from tacitly agreeing by our silence future endeavor• equipment remain standing as jefore, but that no development is better than imper­ the production is stopping. In this regula­ fect development. THE PASS4NG 01', MILDRED PEPPER tory neutron bomb, doses of immolating ra­ We must stop doing our enemies work by diation are replaced at the various levels and referring to no-growthers as environmental­ increments of "permissible pollution." ist s. If there is a better word than "no­ HON. GLENN M. ANDERSON Is there more trouble ahead? Of course! growthers," by all means use it. But to allow Perhaps that most dangerous to mining ls the them the shelter of the word, "environment­ OF CALIFORNIA blll now in Congress dealing with Natural alist," ls to leave us in the uncomfortable IN THE HOUSE OF REPRESENTATIVES Diversity Preservation. That bill, if it be­ position of attacking the defenders of a Monday, April 2, 1979 comes law, will enable no-growthers and ob­ clean environment-something which none structionists to literally sharpshoot specific of us wants to do. e Mr. ANDERSON of California. Mr. targets. No longer will they need to risk un­ wanted reactions from scattergun blasts at We must keep pressing our point at every Speaker, it was with great sorrow that I entire industries or regions. Those ap­ opportunity. Look what Utah has done to learned this weekend of the passing of proaches often had the unfortunate conse­ RARE II in that State with its new Class Mildred Pepper, the wife of our colleague, quence of inducing economic fallout on large D roads. This ls a means for any county Chairman CLAUDE PEPPER. labor unions or otherwise politically sensi­ in the State to petition for official designa­ Only one Member of Congress has tive targets. When the Natural Diversity Pres­ tion of any road, no matter whethe.r it ls "regularly maintained," or not. I'm told served in Washington since before the ervation Act becomes functional, no-growth­ arrival of Senator and Mrs. Pepper. And ers will be able to dissect and carve up devel­ that the regulators are stlll trying to get opment projects with precision and to reject around that one. The citizens of Nevada are in all those years, Mrs. Pepper has been vital pieces of them at will with high-sound­ currently giving us a double dose of fresh right beside CLAUDE, serving the people ing justifications. Each rejection wlll be ra­ air. Esmeralda County has recently under­ of Florida and its 14th Congressional tionalized as being necessary to preserve the taken to literally veto unwanted actions District. priceless and irreplaceable values which give of the BLM in the county, while at the Mildred's interests extended beyond our nation its charm and substance. same time. a petition ls circulating through­ the Halls of Congress and the Washing­ We must not become single-minded, how­ out the State calling on Congress to trans­ ton social scene. For years, she had been ever, in thinking that mining is the only ob­ fer management of public lands from federal ject of overregulation. All industry is suffer­ agencies to Nevada. Just think about that active in a variety of civic and charitable ing from the activity of the no-growthers. movement spreading! organizations. Her interests in cancer The automobile industry is a notable exam­ The way of success for us is not to sulk research and Parkinson's disease were ple. No industry has been harassed and trou­ in our misfortune, but to aggressively use especially pronounced, but her energy bled more than the nuclear power industry. our ingenuity to accomplish what we know and spirit and concern led also to her Nuclear power seems to represent the ulti­ is logical and right. Letters to the Editor activities in ecology and beautification, mate evil of the no-growthers. At least, that of newspapers sometimes seem ineffective the Red Cross, the United Nations, the is the posture of our domestic no-growthers. and futile. They'.re not, as the Editors or USO, and in 1946, to the Paris Peace Con­ In the Soviet Union, which has no Friends of their assistants read them even if they don't the Earth to contend with, 20 percent of all publish them. Write them? Talk to your ference. new power construction in the next five years fam111es. Talk about it at lunch and on I am sure that much will be said of will be nuclear. In the USA, chemic;i,ls, lum­ airplanes. Talk to your State Legislators, Rosalynn Carter's characterization of ber, and steel all are fighting for their very for they all are looking for issues on which Mrs. Pepper as "one of the first liberated lives at a time when the thing most needed to run for higher office. And by all means, women," and indeed, that she did have in America is greater productivity. The latest talk and write to Congressmen and Sena­ an active life of her own cannot be dis­ target of the no-growth campaign appears to tors. You know they've heard it all before, puted. Her interests led her everywhere, be agriculture. EPA's Rural Clean Water Pro­ but they need to hear it again and again, and she touched the lives of so many in gram, getting underway October 1, will re­ until they truly think they have always quire farmers to apply "best management" known these things. Policy is made that so many ways. All will miss her. techniques to curb polluted water runoff way. And when you encounter a cong.ress­ Of course, none will miss her as great­ from fields. It is certain that consumers will man or senator who understands the im­ ly as CLAUDE. Lee and I share his grief.• ultimately share the cost of this latest reg­ portance of resource development recognize ulatory excursion in the form o! higher food him with your verbal and material support. prices and a lower standard of living. We are fortunate to have many o! these in PERSONAL EXPLANATION Well, we have recited a dismal picture. Do the West. we roll over and play dead? Not by a long Don't give up. Keep your sense of humor. shot! But, it is well to remember that history And win! e HON. ROBERT A. YOUNG has demonstrated that bureaucrats never OF MISSOURI give up power voluntarily. This ls simply the IN THE HOUSE OF REPRESENTATIVES nature of things. It is important not to be­ JOE BARTLETT come discouraged. Realism and rational Monday, April 2, 1979 thought, wherever they arise, are of immea­ • Mr. YOUNG of Missouri. Mr. Speaker, surable help. Even the utopia-planning HON. J. WILLIAM STANTON thinkers of the Club of Rome have been on March 28 and 29, 1979, I was absent known to yield to self-induced logic. The OF OHIO from the floor of the House of Repre­ comparatively mild recession of 1975 was IN THE HOUSE OF REPRESENTATIVES sentatives due to prior business in the enough to cause the Club of Rome to discover Wednesday, March 28, 1979 district. Had I been present, I would that "a resurgence of economic growth would have voted in the following fashion: be necessary to reduce hunger and poverty O Mr. STANTON. Mr. Speaker, I am Rollcall No. 63, approval of NASA sup­ among the world's people." An astonishing very pleased to join with my colleagues plemental authorization, "yes"; conclusion! The Club has also found that nu­ in expressing thanks to Joe Bartlett for clear power generation would be supe~ior to Rollcall No. 64, amendment to H.R. fossil fuel power generation because it would his many years of service to the House of 1786, "no"; reduce the global buildup of atmospheric Representatives. Rollcall No. 65, approval of NASA au­ • co2 The name, Joe Bartlett, is synonymous thorization, "yes"; So, you see that our opposition is not as with the House of Representatives. Joe Rollcall No. 66, amendment to H.R. monolithic and unyielding as it may some- began his service in the House over 38 3173, "yes"; 7048 EXTENSIONS OF REMARKS April 2, 1979 Rollcall No. 67, amendment to H.R. Appropriations Appropriations 3173, "yes"; Defense Subcommittee Public Works Subcommittee Rollcall No. 69, approval of House To continue closed hearings on proposed To continue hearings on proposed budget budget estimates for fiscal year 1980 estimates for fiscal year 1980 for public Resolution 53, "yes". !or the Defense establishment. Mr. Speaker, I would like to note that works projects and energy research and 1223 Dirksen Building development programs. on rollcall No. 66, I was incorrectly Appropriations 1114 Dirksen Building paired and my vote should have been HUD-Independent Agencies Subcommittee Armed Services yes.• To continue hearings on proposed budget Procurement Polley and Reprograming estimates for fiscal year 1980 !or the Subcommittee National Science Foundation. To receive testimony, in closed session, SENATE COMMI'ITEE MEETINGS 1318 Dirksen. Building on reprograming requests for the Appropriations Air Launch Cruise Missile, U.S. Air Title IV of the Senate Resolution 4, Interior Subcommittee agreed to by the Senate on February 4, Force. To resume hearings on proposed budget 224 Russell Building 1977, calls for establishment of a system estimates for FY 1980 for the Heritage for a computerized schedule of all meet­ Conservation and Recreation Services. APRIL5 ings and hearings of Senate committees, 1224 Dirksen Building 8:00 a .m. subcommittees, joint committees, and Appropriations Armed Services Public Works Subcommittee Research and Development Subcommittee committees of conference. This title re­ To continue hearings on proposed budget To resume closed hearings on proposed quires all such committees to notify the estimates for fiscal year 1980 for pub­ military procurement authorization Office of the Senate Daily Digest-desig­ Uc works projects and energy research requests for fiscal year 1980 for stra­ nated by the Rules Committee-of the and development programs. tegic surve111ance, warning, and com­ time, place, and purpose of all meetings 1114 Dirksen Building mand and control programs, Depart­ when scheduled, and any cancellations or Armed Services ment of Defense. Manpower and Personnel Subcommittee 224 Russell Building changes in the meetings as they occur. 9:30 a .m. An interim procedure until the com­ To receive testimony on proposed legisla­ lation authorizing funds for fiscal year Commerce, Science, and Transportation puterization of this information becomes 1980 for civ111an manpower, Depart­ To hold oversight hearings on the activi­ operational the Office of the Senate Daily ment of Defense. ties of air freight transportation in­ Digest will prepare this information for 212 Russell Building dustry and to evaluate the impact of printing in the Extensions of Remarks Banking, Housing, and Urban Affairs recent air cargo deregulation section of the CONGRESSIONAL RECORD on International Finance Subcommittee 235 Russell Building Monday and Wednesday of each week. To hold oversight hearings on the impli­ Environment and Publlc Works Any changes in committee scheduling cations of the proposed multilateral Regional and Community Development will be indicated by placement of an as­ trade agreements for U.S. exports. Subcommittee terisk to the left of the name of the unit 5302 Dirksen Building To continue hearings on proposed au­ Budget thorizations for fiscal year 1980 for the conducting such meetings. To continue markup of the first concur­ Appalachian Regional Commission, Meetings scheduled for Tuesday, April rent budget resolution setting forth and for Title V Regional Action Plan­ 3, 1979, may be found in the Daily Digest recommended levels of total budget ning Commissions to promote eco­ of today's RECORD. outlays, Federal revenues, and new nomic growth. budget authority. 4200 Dirksen Building MEETINGS SCHEDULED 6202 Dirksen Building Judiciary APRIL 4 Commerce, Science. and Transportation To hold hearings on proposed authoriza­ 8:00 a.m. Merchant Marine and Tourism Subcom­ tions for fiscal year 1980 for the Land Armed Services mittee and Natural Resources Division, De­ Research and Development Subcommittee To hold hearings on S. 640, authorizing partment of Justice. To receive testimony on the NATO funds for fiscal year 1980 for certain 2228 Dirksen Building standardization program. maritime programs of the Department 10:00 a.m. 224 Russell Building of Commerce. Appropriations 9:30 a.m. 235 Russell Building Foreign Operations Subcommittee Environmelllt and Publlc Works Energy and Natural Resources To hold hearings on proposed budget Regional and Community Development Energy Conservation and Supply Subcom­ estimates !or fiscal year 1980 for Subcommittee mittee foreign assistance prognms. To continue hea.rlngs on proposed To continue hearings on S. 688, proposed 1114 Dirksen Building authorizations for fl.seal year 1980 for fiscal year 1980 authorizations for the Appropriations the Appalachian Regional Commission, Department of Energy. HUD-Independent Agencies Subcommittee and for Title V Regional Action Plan­ 3110 Dlrklen Building To resume hearings on proposed budget ning Commissions to promote eco­ Finance estimates for fiscal year 1980 for the nomic growth. To resume consideration of those tssues National Science Foundation, and the 4200 Dirksen Building Office of Science and Technology Judiciary relating to the implementation of the Multilateral Trade Negotiations. policy. To hold hearings on the nomination of 2221 Dlrklen Bu1ld1ng 1318 Dirksen Building Martin F. Loughlin, to be U.S. District Appropriations Judge !or the District of New Hamp- Foreign Relations International Economic Polley Subcommit­ Interior Subcommittee 6hire. tee. To continue hearings on proposed budget '357 Russell Building estimates for FY 1980 for the Heritage Labor and Human Resources To hold a closed business meeting. S-116, Capitol Conservation and Recreation Service. Health and Scientific Research SUbcom­ 1224 Dirksen Building mittee Rules and Administration To receive testimony on pulblic hee.lth Business meeting to discuss report on Appropriations implications of the recent nuclear re­ automatic typing tests and on corre­ Public Works Subcommittee actor accident in Harrisburg. spondence systems in state offices of To continue bearings on proposed budget 2228 Dirksen Building Senators, and other legislative and ad­ estimates for fiscal year 1980 for public 9:45 a.m. ministrative business. works projects and energy research 301 Russell Building and development programs. Judiciary 10:30 a.m. 1224 Dirksen Building To hold hearings on proposed authoriza­ Labor and Human Resources Appropriations tions for fiscal year 1980 for the Civil To hold hearings on the nomination of Transportation Subcommittee Rights Division, Department of Jus­ Marforie Fine Knowles, of Alabama, To resume hearings on proposed budget tice. to be Inspector General, Department estimates for fiscal year 1980 for the 357 Russell Building of Labor. Department of Transportation. 10:00 a.m. 4232 Dirksen Building 318 Russell Building Agriculture, Nutrition, and Forestry 2:00p.m. Armed Services To hold hearings on the nomination of Appropriations To resume closed hearings on proposed James M. Stone, of Massachusetts, to Defense Subcommittee m111tary procurement authorizations be a member and Chairman o! the To continue closed hearings on proposed tor fiscal year 1980, to receive testi­ Commodity Futures Trading Commis­ budget estimates for fiscal year 1980 mony on runds !or Navy ship pro- sion. for the Defense establishment. grams. 324 Russell Butlding 1223 Dirksen Building 212 Russell Building April 2, 1979 EXTENSIONS OF REMARKS 7049 Banking, Housing, and Urban Affairs 9:30 a.m. APRIL 9 International Finance Subcommittee Commerce, Science, and Transporta.tion 9 :30 a.m. To resume oversight hearings on the Science, Technology, and Space Sub­ Commerce, Science, and Transportation lmplic;i,tlons o! the proposed multi­ committee Science, Technology, and Space Subcom­ lateral trade agreements for U.S. ex­ To mark up 357, proposed budget esti­ mittee ports. mates for fiscal year 1980, and S. 354, To hold hearings on S. 663, to establish 5302 Dirksen Building proposed supplemental appropriations an Earth Data and Information Serv­ Budget for fiscal year 1979, both for NASA. ice which would supply data on the To continue markup of the first concur­ 235 Russell Building Earth's resources and environment. rent budget resolution setting forth 457 Russell Building recommended levels of total budget 10:00 a.m. outlays, Federal revenues, and new Appropriations Judiciary budget authority. Transportation Subcommittee Constitution Subcommittee 6202 Dirksen Building To continue hearings on proposed budget To resume hearings on S.J. Res. 28, to Energy and Natural Resources estimates for fiscal year 1980 for the provide for the direct popular election Energy Research and Development Sub­ Department of Transportation. of the President and Vice President of the United States. committee 1224 Dirksen Building To resume hearings on S. 673 and s. 688, 318 Russell Building Budget Labor and Human Resources proposed fiscal year 1980 authorlz3.­ To continue markup of the first con­ tlons for the Department o! Energy. current budget resolution setting Alcoholism and Drug Abuse Subcommittee 3110 Dirksen Bullding forth recommended levels of total To mark up S. 440, proposed Compre­ Finance budget outlays, Federal revenues, and hensive Alcohol Abuse and Alcoholtsm To continue consideration of those issues new budget authority. Prevention, Treatment, and Rehab111- relating to the implementation of the tation Act, and S. 525, proposed Drug Multilateral Trade Negotiations. 6202 Dirksen Building Abuse Prevention, Treatment, and Re­ 2221 Dirksen Bulldin_g Energy and Natural Resources hab111tat1on Act. Foreign Relations Business meeting on pending calendar 4232 Dirksen Bullding To hold hearings on s. 660, authorizing business. 10:00 a.m. funds !or fiscal year 1980 !or programs 3110 Dirksen Building Commerce, Science, and Transportation under the Arms Control and Disarma­ To resume joint hearings with the En­ ment Act. Governmental Affairs To hold hearings on S. 262, proposed Re­ energy and Natural Resources· subcom­ 4221 Dirksen Bufldlng mittee on Energy Resources and Ma­ Veterans' A1fairs form of Federal Regulation Act. 3302 Dirksen Bulldlng terials Production on S. 493, proposed To hold hearings on the nomination of Deep Seabed Mineral Resources Act. Allan L. Reynolds, of Virginia, to be Judiciary 3110 Dirksen Bulld.lng Inspector General, Veterans' Admin­ To resume hearings on proposed authori­ istration. zations for fiscal year 1980 for the Drug Energy and Natural Resources 5110 Dirksen Bulldlng Enforcement Administration, Depart­ Energy Resources and Materials Produc­ 2:00 p.m. ment of Justice. tion Subcommittee Appropriations 2228 Dirksen Building To resume joint hearings with the Com­ Public Works Subcommittee mittee on Commerce, Science, and To continue hearings on proposed budg­ Labor and Human Resources Transportation on S. 493, proposed et estimates for fiscal year 1980 for Education, Arts, and the Humanities Sub­ Deep Seabed Mineral Resources Act. public works projects and energy re­ committee 3110 Dirksen Building search and development programs. To hold oversight hearings on the regu­ Finance lation of the treatment of independent 1114 Dirksen Building Social Security Subcommittee Approprlatlons students in the Basic Educational Op­ portunity Grant program. To hold oversight bearings on the activ­ Transportation Subcommittee ities of programs administered by the To continue hearings on proposed budget 4232 Dirksen Building Social Security Administration. estimates for fiscal year 1980 for the Labor and Human Resources 2221 Dirksen Bullding Department o! Transportation. Health and Scientific Research Subcom­ 10:30 a.m. 318 Russell Building mittee Select on Small Business Commerce, Science, and Transportation To hold oversight hearings on the imple­ To hold hearings on proposed authoriza­ To hold oversight hearings on the ac­ mentation of Influenza liab111ty issues. tivities of the Small Business Develop­ tions !or fiscal year 1980 !or the ment Center program under the Small 1202 Dirksen Building U.S. Coast Guard, Department of Business Administration. Joint Economic Transportation. 424 Russell Building To receive testimony on the employ­ 235 Russell Building Select on Ethics ment-unemployment situation for 2:00 p.m. To hold an open and closed business March. Environment and Public Works meeting. 6226 Dirksen Bullding Environmental Pollution Subcommittee Room to be announced 11:00 a.m. To mark up proposed leglslation author­ 3:00 p.m. Appropriations izing funds for fiscal year 1980 for Select on Small Business Transportation Subcommittee programs under the Toxic Substances To hold oversight hearings on the im­ To continue hearings on proposed budget Control Act, Safe Drinking Water plementation of minority business estimates for fiscal year 1980 for the Act, Ocean Dumping Act, and programs under the Small Business Department of Transportation. to consider the Environmental Administration. Protection Agency's recommendation 1224 Dirksen Bullding 424 Russell Bullding 2:00 p.m. to extend the period of ava1lab111ty 3:30 p.m. o! authorizations !or wastewater Foreign Relations Appropriations treatment construction grants. To resume closed hearings, to receive a Transportation Subcommittee 4200 Dirksen Bullding To continue hearings on proposed budget briefing on the impending SALT APRIL 10 treaty. estimates for fiscal year 1980 for the S-116, Capitol Department of Transportation. 9:00 a.m. APRJIL 6 1224 Dirksen Bullding Banking, Housing, and Urban Atralrs 9:00a.m. Select on Intelllgence Housing and Urban Affairs Subcommittee Agriculture, Nutrition, and Forestry Budget Authorization Subcommittee To hold hearings on S. 593, proposed El­ Agricultural Credit and Rural Electrifica­ To mark up, 1n closed session, proposed derly and Handicapped Act, S . 740, pro­ tion Subcommittee fiscal year 1980 authorization requests posed Homeownership Opportunity To hold hearings on S. 261, proposed for intelligence operations of the Fed­ Act, and S. 745, Housing and Commu­ Agricultural Subterminal Storage Fa­ eral Government. nity Development Amendments, and c111ties Act. 6-407, Capitol other related proposals. 324 Russell Building 5302 Dirksen Building Judiciary 3:00 p.m. Antitrust, Monopoly and Business Rights Judiciary Veterans' Affairs Subcommittee To hold hearings on proposed authoriza­ To hold hearings on S. 196 and S. 741, tions for fiscal year 1980 for the U.S. bllls to extend certain veterans' health To resume hearings on s. 600, to preserve benefits programs through fiscal year the diversity and independence of Marshals Service's Witness Protection American business. program of the Department of Justice. 1980. 5110 Dirksen Building 2228 Dirksen Building 6226 Dirksen Building 7050 EXTENSIONS OF REMARKS April 2, 1979 9:30 a.m. Environment and Public Works Banking, Housing, and Urban Affairs Environment and Public Works Environmental Pollution Subcommittee Financial I n st itutions Subcommittee Regional and Community Development To resume markup on proposed legisla­ To cont inue hearings en s. Con. Res. 5 Subcommittee tion authorizing funds !or fiscal year and S. Res. 59, both relating to the To hold hearings on proposed authoriza­ 1980 for programs under the Toxic equity for the small saver. t ions for fiscal year 1980 for the Public Substances Control Act, Safe Drink­ 5302 Dirksen Building Works and Economic Development pro­ ing Water Act, Ocean Dumping Act, grams. and to consider the Environmental Commerce, Science, and Trans;iortation 4200 Dirksen Building Protection Agency's recommendation Surface Transpor.tation Subcommittee 10 :00 a .m . to extend the period of availab111ty of To hold hearings on S. 796, ito imple­ Appropriat ions authorizations for wastewater treat­ ment railroad deregulation. Interior Subcommittee ment construction grants. 235 Russell Building To resume hearings on proposed budget 4200 Dirksen Bullding estimates for FY 1980 for the Fish and Energy and Natural Resources Wildlife Service. *Finance Parks, Re.::reat ion, and Renewable Re­ 1223 Dirksen Building To continue markup on S . 350, S. 351, sources Subcommittee S. 748, and S. 760, bills to encourage Energy and Natural Resources and !ac111tate the availability, through To resume oversight hearings on the Energy Conservation and Supply Subcom­ private insurance carriers, of basic National Park Service's concession pol­ mittee health insurance at reasonable pre­ icy. To resume hearings on S. 688 proposed mium charges. 3110 Dirksen Building fiscal year 1980 authorizations for the 2221 Dirksen Building 2 :00 p.m. Department of Energy. 2:00 p.m. Appropriations 3110 Dirksen Building Commerce, Science, and Transportation Transportation Subcommittee *Finance To hold hearings on proposed authoriza­ To continue hearings on proposed budg­ To mark up S. 350, S. 351, S. 748, and S. tions for fiscal year 1980 for the Ocean 760, bills to encourage and !ac111tate et estimates for fiscal year 1980 for the Pollution Research and Development Department of Transportation. the availab111ty, through private in­ and Monitoring and Planning Act 1224 Dirksen Building surance carriers, of basic heal th insur­ (P.L. 95-273), and Title II of the Ma­ ance at reasonable premium charges. rine Protection, Research and Sanctu­ APRIL 23 2221 Dirksen Building aries Act (P.L. 92-532). 10:00 a.m. 2:00 p .m. 235 Russell Building Commerce, Science, and Transportation Energy and Natural Resources To hold hearings on proposed authoriza­ Environment and Public Works To hold oversight hearings on United tions for fiscal year 1980 for the N8t­ Regional and Community Development States activities in Antarctica. tional Advisory Committee on Oceans Subcommittee 3110 Dirksen Building and Atmosphere. To mark up proposed authorizations for APRIL 24 S-146, Capitol fiscal year 1980 for the Appalachian 8:00 a.m. Select on Intelligence Regional Commission, and for Title V Appropriations To mark up, in closed session, proposed Regional Action Planning Commis­ fiscal year 1980 authorization requests sions to promote economic growth. District of Columbia Subcommittee for intelligence operations of the Fed­ 4200 Dirksen Building To receive a briefing on proposed budget eral Government. APRIL 12 estimates !or fiscal year 1980 !or the Government of the District of Co­ 8-407, Capitol 9 :30 a .m. APRIL 11 lumbia. Environment and Public Works 9:30 a.m. S-126, Capitol Commerce, Science, and Transportation Resource Protection Subcommittee 9:00 a.m. To markup proposed legislation author­ Science, Technology, and Space Subcom­ Commerce, Science, and Transportation mittee izing funds for fiscal year 1980 !or To continue hearings on S. 663, to es­ programs under the Solid Waste Con­ Communications Subcommittee tablish an Earth Data and Informa­ trol Act, and for the Environmental To hold hearings on S. 611, proposed tion Service which would supply data Protection Agency's research and de­ Communic3.tions Act Amendments, on the Earth's resources and environ­ velopment programs. and S. 622, proposed Telecommunica­ ment. 4200 Dirksen Building tions Competition and Deregulation 457 Russell Building Judiciary Act. 10:00 a .m. Constitution Subcommittee 235 Russell Building Appropriations To hold hearings on S.J. Res. 34, to HUD-Independent Agencies Subcommittee 9:30 a .m. extend the term of office of Members Environment and Public Works To continue hearings on proposed of the U.S. House of Representatives budget estimates for fiscal year 1980 to 4 years. Regional and Community Development for the Federal Emergency Manage­ 5110 Dirksen Building Subcommittee ment Administration. To resume hearings on proposed author­ Select on Small Business 1918 Dirksen Bullding izations for fiscal year 1980 for the Banking, Housing, and Urban Affairs Government Procurement Subcommittee Public Works and Economic Develop­ Financial Institutions Subcommittee To resume hearings on the impact on ment Programs. small businesses of the International To hold hearings on S. Con. Res. 5 and 4.200 Dirksen Building S. Res. 59, both relating to the equity Procurement Code being negotiated as part of the multilateral trade 10:00 a.m. for the small saver. Approprhtions 5302 Dirksen Building agreement. Commerce, Science, and Transportation 424 Russell Building Interior Subcommittee To hold hearings on S. 758, authorizing 10:00 a .m. To resume hearings on proposed budget funds for fiscal years 1980 and 1981 Appropriations estimates for FY 1980 for the Bureau for programs under the International HUD-Independent Agencies Subcommittee of Land Management. Investment Survey Act. To resume hearings on proposed budget 1223 Dirksen Building 6226 Dirksen Building estimates for fiscal yea.r 1980 for the Energy and Natural Resources Commerce, Science, and Transportation Department of the Treasury. Energy Conservation and Supply Sub­ To hold hearings on proposed authoriza­ 1318 Dirksen Building committee tions for fiscal year 1980 for programs Appropriations To resume hearings on S. 688, proposed under Sec. 305 of the Coastal Zone Management Act of 1972, and title III Interior Subcommittee fiscal year 1980 authorizations for the of the Marine Protection, Research, To resume hearings on proposed budget Dep:i.rtment of Energy. and Sanctuaries Act of 1972. estimates for FY 1980 for the Bureau Room to be announced 235 Russell Building of Mines. Energy and Natural Resources 1223 Dirksen Building Energy and Natural Resources Appropriations Energy Resource6 and Ma.teria.ls Production Energy Conservation and Supply Subcom­ Subcommittee mittee Transportation Subcommittee To resume hearings on proposed budget To hold hearings on - S. 688, proposed To continue hearings on S. 688, proposed fiscal year 1980 authorizations for the fiscal year 1980 authorizations for the estimates for fiscal year 1980 for the Department or Energy. Department of Transportation. Department of Energy. 3110 Dirksen Building 3110 Dirksen Building 1224 Dirksen Bu11d1ni April 2, 1979 EXTENSIONS OF REMARKS 7051

APRIL 25 9 :00 a. .m. 9 :30 a.m. 8:00 a.m. Commerce, Science, and Transportation Finance Appropriations Communications Subcommlttee Taxation and Debt Management Gener­ To continue hearings on S. 611, proposed ally Subcommittee District of Columbia Subcommittee Communications Act Amendments, To hold hearings on S. 103, proposed To hold hearings on proposed budget and S. 622, proposed Telecommunica­ Save Our Schools Act, and S. 449, pro­ estimates for fiscal year 1980 for gov­ tions Competition and Deregulation posed Charitable Organizations Pres­ ernmental direction and support serv­ Act. ervation Act. ices for the government of the Dis­ 235 Russell Building 2221 Dirksen Building trict of Columbia. 9:30 a .m 10:00 a .m. S-126, Capitol Labor and Human Resources Appropriations 9 :OO a..m. To continue oversight hearings on. the HUD-Independent Agencies Subcommittee Commerce, Science, and Transportation conditions, trends, and new approaches To resume hearings on proposed budget Communications Subcommittee to linking education, health, and work estimates for fiscal year 1980 for the To continue hearings on S. 611, pro­ in the coming decade. Department of Housing and Urban posed Communications Act Amend­ 423 Dirksen Building Development, and the Neighborhood ments, and S. 622, proposed Telecom­ 10 :00 a.m. Reinvestment Corporation. munications Competition: and Deregu­ Appropriations 1318 Dirksen Building lation Act. HUD-Independent Agencies Subcommittee Appropriations 6226 Dirksen Building To continue hearings on proposed budg­ Transportation Subcommittee 9:30 a .m. et estimates for fiscal year 1980 for To continue hearings on proposed budg­ et estimates for fiscal year 1980 !or Commerce, Science, and Transportation the Department of Housing and Urban Development. the Department of Transportation. Aviation Subcommlttee 1318 Dirksen Building 1224 Dirksen Building To hold oversight hearings on the Civil Appropriations Energy and Natural Resources Aeronautics Board plan to Implement Interior Subcommittee Parks, Recreation and Renewable Resources the Airlln,e Deregulation Act (P.L. 95- To continue hearings on proposed budg­ Subcommittee 004). et estimates for FY 1980 for the Office To resume oversight hearings on the 235 Russell Building of Surface Mining Reclamation and National Park Service's concession Environment and Public Works Enforcement Office of Water Research policy. Regional and Community Development and Technology. 3110 Dirksen Building Subcommittee 1223 Dirksen Building Labor and Human Resources To continue hearings on proposed au­ Appropriations thorizations for fiscal year 1980 for the Health and Scientific Research Subcommit­ Transportation Subcommittee tee Public Works and Economic Develop- To resume hearings on proposed budg­ To ccntinue hearings on proposed legis- ment programs. ' et estimates for fiscal year 1980 for the lation on biomedical research 4200 Dirksen Building Department of Transportation. programs. Judiciary 1224 Dirksen Building 4232 Dirl~sen Building Constitution Subcommittee Banking, Housing, and Urban Affairs •veterans' Affairs To hold oversight hearings on the title Economic Stabilization Subcommittee To mark up s. 330, to provide for a judi­ I provisions under the Speedy Trial To continue oversight hearings on the cial review of the administrative ac­ Act of 1974. administration's anti-inflation pro­ tions of the VA, and for veterans' 2228 Dirksen Building gram, and to review the relationship attorneys fees before the VA or the Labor and Human Resources between fiscal policy and inflation. courts, and on proposed legislation To hold oversight hearings on, the con­ 5302 Dirksen Building extending certain veterans' health ditions, trends, and new approaches to *Energy and Natural Resources benefits programs through FY 1980. linking education, health, and work in Energy Regulation Subcommlttee 412 Russell Building the coming decade. To continue hearings on S. 688, proposed APRIL 30 4232 Dirksen Building fiscal year 1980 authorizations far the 9:00 a .m. 10:00 a.m. Department of Energy. Commerce, Science, and Transportation Appropriations 3110 Dirksen Building Communications Subcommittee Interior Subcommittee Environment and Public Works To continue hearings on S. 611, proposed To resume hearings on proposed budget Water Resources Subcommittee Communications Act Amendments, estimates for FY 1980 for the Depart­ To mark up proposed authorizations !or and s. 622, proposed Telecommunica­ ment of the Interior, to hear congres­ fiscal year 1980 for the Water Re­ tions Competition and Deregulation sional witnesses. sources Council. Act. 1223 Dirksen Building 4200 Dirksen Building 235 Russell Building Banking, Housing, and Urban Affairs Labor and Human Resources 9:30 a.m. Economic Stabilization Subcommittee Health and Scientific Research Subcom­ Labor and Human Resources To resume oversight hearings on, the mittee Handicapped Subcommittee administration's anti-Inflation pro­ To hold hearings on proposed legislation To hold oversight hearings on the impll­ gram, and to review the relationship on biomedical research programs. cations of the Randolph-Sheppard Act between fiscal policy and inflation. 154 Russell Building Amendments of 1974. 5302 Dirksen Building 1:30 p.m. 4232 Dirksen Building *Energy and Natural Resources Environment a.nd Public Works 10:00 a.m. Resource Protection Subcommittee Energy Regulation Subcommittee Energy and Natural Resources To hold hearings on proposed authoriza­ Business meeting on pending calendar To hold hearings on S. 688, proposed tions for fiscal year 1980 for programs fiscal year 1980 authorizations for the business. under the Noise Control Act (P.L. 95- 3110 Dirksen Building Department of Energy. 153). 3110 Dirksen Building 4200 Dirksen Building MAY 1 Labor and Human Resources 2:00 p.m. 8:00 a.m. Health and Scientific Research Subcom­ Appropriations Appropriations mittee Transportation Subcommittee District of Columbia Subcommittee To resume hearings on preclinical and To continue hearings on proposed budg­ To hold hearings on proposed budget clinical drug testing by the pharma­ et estimates for fiscal year 1980 for the estimates for fiscal year 1980 for public ceutical industry. Department of Transportation. safety services and educational serv­ 154 Russell Building 1224 Dirksen Building ices for the government of the District APRIL 26 APRIL 27 of Columbia. 8:0-0 a..m. 9:0-0 a .m . 1114 Dirksen Building Appropriations Commerce, Science, and Transportation 9 :30 a.m. District of Columbia. Subcommittee Communications Subcommittee Labor and Human Resources To continue hearings on pronosed budget To continue hearings en S. 611, pro­ Child and Human Development Subcom­ estimates for fiscal year 1980 for gov­ posed Communications Act Amend­ mittee ernmental direction and support serv­ ments, and S. €22, proposed Telecom­ To hold oversight hearings on the imple­ ices !or the government of the Dis­ munications Competition and Dereg­ mentation of the Older American Vol­ trict of Columbia. ulation Act. unteer Program Act (P.L. 93-113). S-126, Capitol 6226 Dirksen Building 4232 Dirksen Building 7052 EXTENSIONS OF REMARKS April 2, 1979 10:00 a.m. 10:00 a.m. Appropriations MAY 10 Appropriations 10:00 a.m. Interior Subcommittee HUD-Independent Agencies Subcommittee To re:::ume hearings on proposed budget Appropriations To resume hearings on proposed hudget estimates for fiscal year 1980 for HUD. I n terior Subcommittee estimates for fiscal year 1980 for tl1e 1318 Dirksen Building National Park Service. To continue hearings on proposed budget Appropriations estimates for fiscal year 1980 for the 1223 Dirksen Building Interior Subcommittee 1:00 p.m. Department of Energy. To continue hearings on proposed budg­ 1223 Dirksen Building Commerce, Science, and Transportation et estimates for fiscal year 1980 for the Communications Subcommittee Department of Energy. Appropriations To continue hearings on S. 611, proposed 1223 Dirksen Building Transportation Subcommittee Communications Act Amendments, Appropriations To resume hearings on proposed budget and S. 622, proposed Telecommunica­ Transportation Subcommittee estimates for fiscal year 1980 for the tions Competition and Deregulation To resume hearings on propo<>ed budget Department of Transportation. Act. estimates for fiscal vear 1980 for the 1224 Dirksen Building 6226 Dirksen Building Department of Transportation. 1224 Dirksen Building Energy and Natural Resources MAY2 To hold hearings on S. 6'85, proposed Nu­ 8:00 a.m. MAY 7 10 :00 a.m. clear Waste Policy Act. Appropriations Appropriations 3110 Dirksen Building District of Columbia Subcommittee Transportation Subcommittee 1:00 p.m. To hold hearings on proposed budget To resume hearinvs on proposed budqet Commerce, Science, and Transportation estimates for fiscal year 1980 for ju­ estimates for fiscal year 1980 for the Communications Subcommittee dicial services, and transportation Department of Transportation. services and assistance for the govern­ To continue hearings on S. 611, proposed 1224 Dirksen Building Communications Act Amendments, ment of the District of Columbia. 2:00 p .m . 1114 Dirksen Building Appropriations a.nd S. 622, proposed Telecommunica­ 9:00 a .m. Transportation Subcommittee tions Competition and Deregulation Commerce, Science, and Transportation To continue hearings on proposed budg­ Act. Communications Subcommittee et estimates for fiscal year 1980 for the 6226 Dirksen Bulldliig To continue hearings on S. 611, proposed Department of Transportation. MAY 11 Communications Act Amendments, 12.24 Dirksen Building 9:00 a.m. and S. 622, proposed Telecommunica­ MAY 8 tions Competition and Deregulation Commerce, Science, and Transportation 8 :00 a .m . Communications Subcommittee Act. Appropriations 235 Russell Building Dist rict of Columbia Subcommittee To continue hearings on S. 611, proposed 9:30 a .m. To hold hearings on proposed budget Communications Act Amendments, Judiciary estimates for fiscal year 1980 for eco­ and S. 622, proposed Telecommunica­ Constitution Subcommittee nomic development and regulation tions Competition and Deregulation To resume oversight hearings on the services for the government of the Act. title I provisions under the Speedy District of Columbia. 235 Russell Building Trial Act of 1974. 1114 Dirksen Building 10:00 a .m . MAY 15 2228 Dirksen Building 10:00 a.m. 10:00 a .m. Appropriations Interior Subcommittee Energy and Natural Resources Appropriations To resume hearings on S. 685, proposed HUD-Independent Agencies Subcommittee To resume hearings on proposed budget estimates for fiscal year 1980 for the Nuclear Waste Policy Act. To continue hearings on proposed 3110 Dirksen Bullding budget estimates for fiscal year 1980 Department of Energy. for HUD and independent agencies. 1223 Dirksen Building MAY 17 1318 Dirksen Building 1 :00 p .m. 10:00 a.m. Appropriations Commerce, Science, and Transportation Appropriations Interior Subcommittee Communications Subcommittee Transportation Subcommittee To continue hearings on proposed To resume hearings on S. 611 , proposed To resume hearings on proposed budget budget estimates for fiscal year 1980 Communications Act Amendments, and S. 622, proposed Telecommunica­ estimates for fiscal year 1980 for the for the Smithsonian Institution. Department of Transportation. 1223 Dirksen Building tions Competition and Deregulation Act. 1224 Dirksen Bulldlng MAY3 622'6 Dirksen Building 2:00 p.m. 8:00 a.m. MAY 9 Appropriations Appropriations 8:00 a.m. Transportation Subcommittee District of Columbia Subcommittee Appropriations To resume hearings on proposed budget To hold hearings on proposed budget District of Columbia Subcommittee estimates for fiscal year 1980 for the estimates for fiscal year 1980 for hu­ To hold hearings on proposed budget Department of Transportation. man support services for the Govern­ estimates for fiscal 1980 for the Tem­ 1224 Dirksen Building ment of the District of Columbia. porary Commission on Financial Over­ 1114 Dirksen Building sight of the government of the District CANCELLATIONS 9:00 a.m. of Columbia. APRIL 5 Commerce, Science, and Transportation 114 Dirksen Building 10:00 a.m. Communications Subcommittee 9:00 a.m. Labor and Human Resources To continue hearings on S. 611, pro­ Commerce, Science. and Transportation Health and Scientific Research Subcom­ posed Communications Act Amend­ Communications Subcommittee ments, and S. 622, proposed Telecom­ mittee To continue hearings on S. 611, proposed To hold oversight hearings on the Na­ munications Competition and Deregu­ Communications Act Amendments. lation Act. and S. 62'2, proposed Telecommuni­ tional Academy of Science report on 6226 Dirksen Bulld1ng cations Competition and Deregulation saccharin and food pollcy programs. 9:30 a.m. Act. 4232 Dirksen Bullding Environment and Public Works 6226 Dirksen Building APRIL 10 Resource Protection Subcommittee 10:00 a.m. 9:30a.m. To markup proposed legislation author­ Appropriations Veterans' Affairs Interior Subcommittee izing funds for fiscal year 1980 for pro­ To hold oversight hearings on the role grams under the Endangered Species To continue hearings on proposed budg­ Act, Anadromous Fish Act, and Noise et estimates for fiscal year 1980 for the of the Federal Government in provid­ Control Act. Department of Energy. ing educational employment. 4200 Dirksen Building 1223 Dirksen Building 6226 Dirksen Building