24848 EXTENSIONS OF REMARKS August 1, 1968 H.R. 19275. A bill for the relief of Jose Elguezabal Uriarte; to the Committee on H.R. 19301. A bill for the relief of Antonio Luis Gorosttza; to the Committee on the the Judiciary. Monticciolo; to the Committee on the Judi Judiciary. H.R. 19290. A blll for the relief of Ra.l ciary. H.R. 19276. A b111 for the relief of Pedro mundo Legarreta-Echevarrla Uriarte; to the H.R. 19302. A bill for the relief of Ines Uberuaga Guenechea; to the ·eommittee on Committee on the Judiciary. Altagracia Parra de Reynoso; to the Com the Judiciary. H.R. 19291. A blll for the relief of Mariano mittee on the Judiciary. H.R. 19277. A bill for the relief of Vincente Basterrechea Zorrozua; to the Committee H.R. 19303. A bill for the relief of Maria Barberia Huarte; to the Committee on the on the Judiciary. Pinazzi; to the Committee on the Judichtry. Judiciary. H.R. 19292. A bill for the relief of Juan By Mr. RAILSBACK: H.R. 19278. A bill for the relief of Lucio Cruz Zublzarretta; to the Committee on the H.R. 19304. A bill for the relief of Leonardo Irazoqui; to the Committee on the Judiciary. Judiciary. Vitale; to the Committee on the Judiciary. H.R.19279. A bill for the relief of Julian By Mr. HORTON: H.R. 19305. A bill for the relief of Santa Iturri; to the Commi,ttee on the Judiciary. H.R. 19293. A bill for the relief of Domenico Vitale and her minor children, Salvatore H.R. 19280. A bill for the relief of Gregorio Stalter!; to the Committee on the Judiciary. Vitale and Antonia Vitale; to the Committee Ocamlca Jayo; to the Committee on the By Mrs. MAY: on the Judiciary. Judiciary. H.R. 19294. A blll for the relief of Eulogio By Mr. RODINO: H.R. 19281. A b111 for the relief of Pablo Lizarraga Eusa and others; ·to the Commit H.R. 19306. A bill for the relief of certain Jayo; to the Committee on the Judiciary. tee on the Judiciary. members of the American Hull Insurance H.R. 19282. A bill for the relief of Jose Ar By Mr. MINSHALL: Syndicate; to the Committee on the Judi rate Legarra; to the Committee on the Judi H.R. 19295. A bill for the relief of Mr. and ciary. ciary. Mrs. Emerito Daganzo de la Cruz; to the By Mr. RONAN: H.R.19283. A bill for the relief of Severiano Committee on the Judiciary. H.R. 19307. A bill for the relie:t' of Mr. Sal Malaxechevarria Lequerlcabeascoa; to the By Mr. OLSEN: vatore Vitale; to the Committee on the Judi Committee on the Judiciary. H.R. 19296. A bill for the relief of Sulai ciary. H.R. 19284. A blll for the relief of Pedro Monhamma Toma; to the Committee on the By Mr. ROSTENKOWSKI: Batts Madartaga; to the Committee on the Judiciary. H.R. 19308. A blll for the relief of Pletra Judiciary. By Mr. O'NEILL of Massachusetts: Cusumano, Margaret Cusumano, and Phillip H.R. 19285. A bill for the relief of Gregorio H.R. 19297. A bill for the relief of Domin Cusumano; to the Committee on the Judi SlllonLs Madarieta; to the Committee on the gos Silverio Ferro; to the Committee on the ciary. Judiciary. Judiciary. H.R. 19309. A bill for the relief of Daniel H.R. 19286. A bill for the relief of Jose By Mr. PHILBIN: Jen Wal Wong; to the Committee on the Maguregui; to the Committee on the Judi H.R. 19298. A blll for the relief of Pietro Judiciary. ciary. Ratta; to the Committee on the Judiciary. By Mr. WILLIS: H.R.19287. A b111 for the relief of Mar H.R. 19299. A bill for the relief of Guisep H.R. 19310. A blll for the relief of Elena celino Larracoechea Meavebasterrechea; to plna Rigoli; to the Committee on the Judi Martin Jimenez; to the Committee on the the Committee on the Judiciary. ciary. Judiciary. H.R. 19288. A bill for the relief of Tlburcio By Mr. PODELL: By Mr. ADAIR: Tellechea; to the Committee on the Judi H.R. 19300. A blll for the relief of Calogero H.R. 19311. A bill for the relief of Mrs. ciary. Mendola; to the Committee on the Judi Enriqueta Gutierrez Taboy; to the Commit H.R. 19289. A blll for the relief of Andres ciary. tee on the Judiciary.
EXTEN,SIO·NS OF REMARKS CLARKSBURG, W.VA., AEROSPACE ca's cities may lie in making rural areas natural resources to their maximum advan EDUCATIONAL SYMPOSIUM BAN livable and attractive enough to reverse tage, to improve the standard of living of QUET ADDRESSED BY ASSISTANr the current population surge to congested their peoples. Within this country, we are striving to SECRETARY OF COMMERCE LAW urban centers. I believe that given the achieve a world peace compatible with other RENCE C. McQUADE-REMARKS necessities of the good life, rural resi important values, to sustain a healthy, grow ARE COGENT AND CHALLENG dents will not only remain where they ing domestic economy, to deal with the prob ING-12,000 HARRISON COUNTY are but will enoourage hundreds of lems of race, poverty, student dLsaffection, SCHOOLCIDLDREN PRESENT FOR thousands of others to migrate to the national unity and social progress within EXHIBIT countryside, such as the State of West America. Virginia, which has an increasingly fine On all fronts, then, there 1s ferment and appeal for those persons in congested change. HON. JENNINGS RANDOLPH areas. To better create this good life, This process of change can hurt, but it also OF WEST VIRGINIA creates moments of opportunity for those basically we need four components. They with imagination. IN THE SENATE OF THE UNITED STATES are water, education, roads, and jobs. We The Clarksburg area well illustrates the Thursday, August 1, 1968 have already the spirit and cooperation promises and perils of a world of change. to do the task. Your fortunes are directly affected by shifts Mr. RANDOLPH. Mr. President, it was I agree with Secretary McQuade that in the national and international economic my privilege to participate with As we must attract industry to smaller com winds. Your concerns are the nation's con sistant Secretary of Commerce Lawrence munities and give jobs to those who cerns. And you face some special problems C. McQuade at the aerospace-educational as well. would otherwise seek urban meccas. Your Space Sciences Fair and Educational symposium banquet in Clarksburg, W. Mr. President, I ask unanimous con Va. This dinner climaxed a week-long Symposium this week undertakes to deal sent that excerpts from Secretary Mc with today's changes through creative, ima space science fair, which was attended Quade's speech be printed in the ginative, determination. by over 12,000 Harrison County school RECORD. • • • • children. There being no objection, the ex I propose to look at the promises and perils Secretary McQuade's remarks were cerpts were ordered to be printed in the of a world of change in four areas of con significant and challenging. He spoke on RECORD, as follows: cemtoyou: technological and geographical changes, The changes that technology imposes. the constantly changing national eco THE PROMISES AND PERILS OJ' A The geographical changes of the mobile nomic mix, and the role of education. CHANGING WORLD American population. Also, McQuade pointed out that- "There is nothing permanent except The constantly changing national economic change.''-Heraclitus. mix. We should recognize that one factor con • • • • • The challenges education faces in prepar tributing to our critical urban problem 1s the ing young people for changing work careers. existence of a rural problem. Unless we can We live in a world of change. . .. Today's slow down the 1n1lux of rural poor into the conditions-whatever they may be--are con • • • • • cities, unless the migranm into the cities stantly crumbling. That is the essence of Let's begin with technological innovation are equipped to hold jobs, and unless jobs the world. finding new ways to produce new and better a.re available 1n the cities, the future of Internationally, the once monolithic Com products at less cost. There are two impor America's metropolitan areas looks dark munist Bloc has been fractionalizing, and tant aspects of this. First, ·technological ad indeed. our relationships with the Eastern European vance has a price. Second, the price is usually countries and our allies evolving toward new worth paying. I have continually stressed that the patterns. Newer nations are struggling to In the last century,· a technologically ex cure for riots, crime, and filth in Ameri- create an identity, to combine human and ploding America has transformed itself from ·August 1, 1968 EXTENSIONS OF REMARKS 24849 a predominantly rural· to a predominantly infant aerospace industry employes almost College, and the proposed construction of a urban society. The brilliant technological 10 times more workers than coal mintng.1 vocational education school in the County. success of the United States has been 1n Today, almost 76 milMon persons are ell). The Economic Development Administra agriculture. Fewer people produce much ployed 1n our country-some 2 million more tion-EDA--on the other hand, 1s national more. Human resources have shifted away than were working a year ago. At the same in scope, seeking to promote regional eco from the farm as the nation's agriculture time, our unemployment rate nationally is nomic planning and programs in areas of adopts mechanization, better seeds, better down to about 3.5 percent of the labor force. substantial and persistent unemployment fertilizers and better farming, Between 1947 This suggests a second point: The price of and under.employment. EDA combines local and 1964 alone, agricultural employment progress 1s usually worth paying. initiatives with Federal assistance to create dropped 42 percent, and 3.5 mill1on agricul We can cushion the unfortunate by-pro new job opportunities by developing new tural jobs vanished. Yet production continues ducts of change and catch the wave of the and expanding existing facillties and re more bountiful than ever. future rather than hide in the lagoon of sources. Another great example of the technological the past. Here in Harrison County EDA has made phenomenon changing America lies in the Technological change has an analogue in several grants to help stimulate industrial evolution of energy. Man, mule and canoe the great mobility of the American people. development. A feasibillty study has been preceded water power, steam, electricity and We do not tend to spend our lives in the completed on the proposed Lost Creek in petroleum. And now atomic power 1s adding same house or the same neighborhood or the dustrial park South of Clarksburg, which to the energy resources available to the na same community. Every year, at least 20 per could provide an estimated 600 jobs. A grant tion and to the world. cent of all Americans move to new address,l! was made for the airport terminal building Today, fossil-fueled power plants still ac although most of the persons so moving move at Bridgeport. And grants were made for count for 75 percent of all electric power to a new residence within the same county. water systems at Bridgeport and Salem. generated in the United States. But nuclear Some 500,000 rural poor, many of them • • • • reactors will be replacing power boilers at an Negro Americans from the South, migrate Through these and other government pro increasing rate of the generation of elec * • grams but mainly through local initiative tricity for our homes and industry. Current each year to metropolitan areas in search of and promotion, geographic change can be an forecasts indicate that 60 percent of all gen jobs and better living conditions. opportunity for growth even for an area erating capacity to be installed in the 1970's The country's population is increasingly losing some of its traditional sources of eco will be nuclear powered, and by 1980 be concentrating in urban and metropolitan nomic strength. tween 30 and 50 percent of all electricity areas. By 1980, the Bureau of the Census The new Lockheed-Georgia plant in Har generated will be from nuclear steam supply projects that 75 percent of the 241 m1llion rison County indicates that era of electronics systems. Americans w111 live in urban areas. has already dawned here. Other space-age This does not mean that West Virginia's Yet at the same time manufacturing industries are looking for progressive com great natural resource--coal-wilt become ir plants, wholesale and retail businesses, and munities in which to locate. This week's relevant to the national economy. The coal service businesses are moving to the suburbs Symposium demonstrates that you're tak industry is healthy today, and our wish in and smaller cities. ing an initiative in the best American tradi Washington is that much more could be done Between 1960 and 1965, 62 percent of all tion. to produce enough coal to feed the will1ng ex new plant development, by value, took place These demographic and technological port markets of Western Europe. These ex outside the central cities where there is room changes in our domestic economy have con port dollars would help the balance of pay for expansion, lower taxes and other costs, tributed to the third major area of change, ments. But competition from home demand and living conditions attractive to skilled the shifts in the economic mix of the and higher freight rates for export destined labor. country. coal have kept this kind of exporting below The result is an increasing mismatch be The first is the sheer size of the growth optimum. tween jobs and people in the central cities. of the American economy. Between 1961 and It is true, however, that the proportions of Because of this two-way migration, it is fore 1967, the total output of goods and services national energy derived from ooal w111 ct1- cast that the 25 largest metropolitan areas of the United States (our Gross National m1nish. More important, mechanization of Product) increased by 60 percent, of which outside California w111 be faced with a short 41 percent consisted of growth in real pro mining has displaced the old-fash1oned tage of nearly 3 m111ion jobs by 1975. miner, and employment has fallen off duction, thaILLINOIS omy has become more industrialized and our fession. IN THE HOUSE OF REPRESENTATIVES This same capab111ty can, of course, be technology more advanced, finished manu Wednesday, July 31, 1968 factures--predominantly machinery and learned in many other disciplines. Even at transport equipment--account for an in early stages 1n school, I believe that more Mr. RUMSFELD. Mr. Speaker, in the creasing share of our exports.8 Though wage emphasis can usefully be placed upon analy Atlantic, August 1968, in an article en rates are high in these industries, tech tical and imaginative dealing with problems. nological applications have made it possible Those with these developed talents will, I titled "The New Racialism," sociologist to produce the products with relatively fewer believe, inevitably outstrip those with pre Daniel P. Moynihan comments on the workers and thus at competitive prices. dOininantly information-oriented minds. tum-around in liberal thinking on the Until relatively recently, our stable unit The complexities of tomorrow require even issues of centralized Government and labor costs gave us a stronger competitive higher levels of education and training. The ethnic quotas. exhibits the Armory which most of you position in these products relative to major at Distrust of Washington, once the sure foreign producers whose costs were rising. and some 12,000 Clarksburg area students have seen this week makes this point dra giveaway of a conservative or reactionary Since late 1965, the situation has reversed. mind, has become a characteristics stance of Our prices have risen relatively faster than matically. In the past few decades, improved educa forward-looking young men. And now ethnic those of our foreign competitors. Price in quotas have reappeared. creases in the last four months have been the tion has raised the average quality of our largest the nation has seen for many a year. labor. This quality must continue to improve. This is a most provocative article by They reflect in significant part rising wage And that means that youngsters must stay a distinguished scholar, and I commend costs. The rise in average compensation pet' in school and spend more years in the class room to compete successfully in the future. it to my colleagues. man-hour for non-farm workers rose 6.8 But as we have learned that turning to percent in the first quarter of this year over Even today, of the Labor Department's list of 70 occupations for which there will be a the Federal Goverrunent does not the first quarter of 1967-the fastest rise in steady national demand, only four do not more than a decade. produce satisfactory answers to all of require a high schoo·l education. our problems, particularly to the con • • • • • One of the best investments of our eco tinuing problems of inequality of oppor The escape clause has been used to assist nomic wealth would be to give our youth the sheet glass industry, which is an impor the necessary sk11ls-and the breadth of tunity faced by our Negro citizens, let us tant part of the economy of the Clarksburg understanding-to build their lives with not forget that neither is the city hall area. In 1962, the President imposed higher wisdom and success. We must prevent de of yesterday perfect mechanism for deal escape-action rates on sheet glass imports prived children from becoming deprived ing with many of these problems. As a to meet the strong competition faced by adults. comment on this side of the picture, I domestic industry. We cannot afford to have unemployables call attention to an interesting essay by Last fall, the escape-clause tariff rates on when jobs are going begging in many areas Leon M. Despres, an independent alder medium-weight sheet glass were extended to of the nation. We have created 12.5 m11lion man in Chicago, entitled "The Chicago January 1970, in recognition that most of new jobs in the past seven years of steady the plants producing this type of glass are economic growth. And, as President Johnson the Delegates Won't See,'' which appears located in areas of relatively high unem said in his State of the Union Message this in the August 1968 issue of the Progres ployment. The President also appointed a year, we will add 1.5 mlllion to 2 million jobs sive. task force of representatives of the Depart every year at our present rate of growth. [From Atlantic Monthly, August 1968) ments of Commerce and Labor and the Small To fulfill the promise of people and jobs THE NEW RACIALISM Business Administration to study the pos being ready for each other, our states and sibilities of mobilizing public and private communities are, for the most part, striving (By Daniel P. Moynihan) help for the industry and communities which to improve their educational systems to the (Note:-The liberals have been confusing might suffer without the special protection. best of their ab111ty within the resources their vocabulary, talking of "racism" when This task force visited Clarksburg in May available to them. Yet far too many young they mean "racialism," and have been aban and talked with industry, labor and civic sters stlll leave public school without a doning their traKennedy Expressway through change, the business and financial interests feeling to be wary of opening that box again. the northwest quadrant of the city to their provide the machine what it needs in money Especially now. Given the prominence of sumptuous hotels downtown, in the "Loop." and Republican backing, and delivers nearly Jews in current American radical move Then for several days they will be whisked full support of all parts of the public opinion ments-the Times describes the student ac back and forth between the Loop and the media. tivists at Columbia as "typically very bright convention hall, a few miles southwest of Except for a number of local suburban and predominantly Jewish"-and the hostage downtown, along special, well-guarded routes. governments and a few county offices lost by of Israel, Jews are at this moment perhaps They will be welcomed to Chicago by the suburbanite margins, Chicago is governed by especially exposed to conservative or reac mayor, Richard J. Daley, and they may fail a firmly run, businesslike organization of tionary pressures which could easily make an to see in this warm, homespun man the about 35,000 persons who live off politics issue of "overrepresentation." Recalling what tough and dominating city boss with the iron the Cook County Democratic Organization. we did to Japanese Americans in World War hand. They may go home impressed with Indeed, it really is a business. It controls the II, we surely should be careful about expos what they have seen of Chicago and its mayoralty, thirty-eight of the fifty members ing Chinese Americans today to reactionary mayor. Some may think they have seen the of the City Council, the school board, the pressures simply on the basis that mainland whole picture. park board, the library board, the housing China is our enemy. But there are many aspects of Chicago and authority, the transit authority, two-thirds It comes down to a matter of prudence: tts boss they wtH not see, aspects less glit of the county board, nearly all the county of recognizing our potential for racialism, tering than O'Hare Field or the 1ID\Pressive offices, many suburban governments, the and guarding against it, while responding to new architecture in the Loop or the special state's attorney, the judiciary, the governor, real and legitimate racial needs. Thus Negroes treatment accorded visitors. the attorney general, the secretary of state, need preferential treatment in some areas, Chicago has to be lived in to be fully un a chunk of the state legislature, the Chicago and deserve it. The good sense of the coun derstood, but a visitor who leaves the central Congressmen, and the Federal patronage. try in the past has been to do this kind of business area and visits the black ghetto, the Chicago may have yielded to Los Angeles thing by informal arrangements-the bal gray neighborhoods, the suburban sprawl, in population, and to Cleveland in residen anced ticket. At the present time Israel, for and the wealthy dormitory towns can gain tial segregation, but thanks to moldy civil example, seems to be having success with some insight into the city. Chicago is a great, service laws, it yields to no city in its total similar arrangements for its Eastern Jewish modem industrial city, the second biggest of 35,000 partisan political patronage job immigrants. Can we not do as much? ln the nation (well, anyhow, third biggest), holders. They are the paid troops who run I hope I would not be interpreted as re dominated by rich, successful business and the election machinery. In a Presidential sisting a more open acknowledgment of these financial interests and governed by the most election, they can produce about 100,000 factors. To the contrary, I feel they should etficielllt polLtical machine of the past cen votes more than are lawfully cast for the be more in our minds, but at a private and tmy. candidate. The importance of this achieve informal level of concern. I am acutely aware, The Chicago metropolitan area, with a ment was best demonstrated in 1960 when for example, of the deb111tating imbalance in population of about 8,000,000, has fantastic John F. Kennedy squeaked through in Dli• the ethnic origins of American social sci industrial, commercial, financial, scientific, nois by 8,858 votes. This "bonus" of 100,000 entists. I say deb111tat1ng because it is the and educational resources. The heart of the votes was decisive in capturing a key state. nature of heterogeneous societies such as area is Cook County, with a population of ("Just to even up the shameful Republican ours that analysis that could in any way be 5,500,000, including the legal city of Chicago frauds downstate," the boys sometimes ra taken as criticism is routinely rejected when tionalize.) They are treated indulgently in with 3,500,000, a million of whom are black. the performance of most of their public the analyst is of a distinctly different group. Residentially, Chicago 11:; the most segregated That is the plain truth of it. And it is chores, but held to high standards for· their a American big city. In the City Council, when party work. Deviations or failures in party truth much in evidence with respect to I quoted the U.S. Civil Rights Commission to Negro studies at this time. Thirty years ago work bring prompt discharge from a job or confirm this distinction, one of my colleagues interdict from office. For their party fidelity, in this country anyone seeking to learn more rose in defense and said that Cleveland is about Negroes would have had to read books however, they win money, security, power, now more segregated residentially than Chi and prestige. There is not much money, written by Negroes: Frazier, Drake, Cayton, cago. When you tour Chicago, however, you Johnson, and others. Somehow that tradi security, power, or prestige for a junior clerk will think Chicago is still first. in the tuberculosis sanitarium, but the tion, nobly begun by DuBois, faltered. There Except for its 700,000 poor (income under was not, for example, a single Negro social closer you come to the center of the 35,000, $3,000 for a family or $1,000 for an individ the more you get. scientist on the research staff of the Presi ual), Chicago is a great place to make money, dent's Advisory Commission on Civil Dis The party is administered by fifty Chicago and lots of people are making lots of it. The ward committeemen and thirty suburban orders. Now, with only a few exceptions, so city motto is "I will," but no one has ever cial science studies of Negroes are carried out township committeemen, elected for four said what. In a representative poll, "I will year terms in patronage-dominated primaries by whites, and we are not to wonder that make money" would probably win a majority. more and more the cry goes out from the (only two city upsets in the last seventeen The Chicago Association of Commerce and years) . Every four years the committeemen slums that they are tired of that white magic Industry, after defining the Chicago metro and will listen no more. But Negroes are elect one of themselves as chairman. In 1953, politan area to cover all the wealthy suburbs, they elected the eleventh ward committee only one case, and not a particularly special :flourishes figures to show that, even with its one. American social sciences desperately man, and have reelected him every four years 700,000 poor, Chicago has the highest per since. Since a party chairman finds it dan needs to expand its ethnic, racial, and re capita income of any metropolitan area. gerous to let another man hold power and ligious base, just as it has got to expand its Chicago's most pampered neighborhood is prestige as mayor of Chicago, the present interests in those areas. the central business area, comprising down party chairman notified the mayor in 1954 Let me conclude with the words with town and the near north side along Lake that the party would not re-slate him, beat which Nathan Glazer and I closed our own Michigan. When visitors speak of Chicago's him in the 1955 primary, and won the elec study of the city: "dynamic, modern progress," they usually tion. Every fourth year since then, Chicago CXIV--1566-Part 19 24854 EXTENSIONS OF REMARKS August 1, 1968 has re-elected him and called him Mayor more difficult service to maintain success housing segregation, and high work-commut Daley, but his really important office is party fully. Despite the excellent reorganization by ing costs, the unemployment rate of Chicago's chairman. 0. W. Wilson after the 1960 pollee burglary black labor force varies from five per cent to The party chairman has the executive pow scandal, the personal insecurity of Chicago thirty-seven per cent, depending on area of ers of a strong corporation president. His job ans is growing. Nevertheless, although the residence, whereas the white labor force is is to run the organization for the benefit o! crime syndicate has continued to produce almost fully employed. the 35,000 jobholders, keep its power intact, gang executions since Daley became mayor, The segregation and oppression of Chicago and win each election as it comes. He ad only four per cent of the aldermen have been blacks in housing, jobs, schooling, and the ministers all the party patronage from the shot. One alderman (Ben Lewis) was mys quality of community life are crucial deter central office; handles the party money with teriously murdered, and the other, I, was only rents to general community improvement of out public account; exacts loyalty from each shot in the leg by youths making a robbery any kind of Chicago. Self-organization of the committeeman; restrains excessive greed; attempt. ghetto, self-determination, and self-expres suppresses scandals; settles internal argu Chicago's black-white tension is the force sion would soon end ghetto support of any ments; conducts sensitive negotiations with that racks, stretches, and disjoints Daley and political machine which tolerates such condi powerful interests; keeps his private-but the C'hlcago political machine. It can erupt tions. not always his public-promises; and says at any time into physical violence, and there Under the Daley system of tight control, the final word on promotions, policies, and is concern the convention delegates may have therefore, the party has to try to overrun, candidates, even for the Presidency of the a glimpse of some. Or it may produce a politi dominate, or starve every significant citi United States. Party Chairman Daley is not cal upset. Daley has never learned-nor zens' committee and community organiza a great party builder like former Mayor An dared-to resolve this tension. He has held tion, especially in the ghetto. For example, ton Cermak or Mayor Edward Kelly, but he the blacks' vote by tight political and social when the Chicago NAACP became m!Utant, is a remarkable consolidater of power. Al control of the black wards through both Daley forces infiltrated it and replaced the though "Democratic" is the name on the bal black and white committeemen, the use of officers. When The Woodlawn Organization lot, the party organization is autocratic. Each patronage, and occasional sops, such as toler (TWO), which energetically represents the committeeman depends on the party chair ating a minuscule pupil-busing program or Woodlawn community, obtained a large anti man for the life-blood of patronage and renaming South Parkway "Martin Luther poverty program on its own, Daley opposed party support and, in turn, each patronage King Drive." He has held the anti-blacks by the program, blocked the appointment of a appointee or officeholder is absolutely respon keeping segregationists in charge of the director, opposed renewal of the program, and sible to his committeeman. school board, delaying the open housing committed his Congressmen and police force To win elections, the party organization ordinance for twelve years longer than New to help a U.S. Senate Committee try to give maintains its professional precinct army; York City, keeping blacks almost entirely out the project a death blow. The "citizens' par keeps a monopoly of the attractive label of of his cabinet, and encouraging police ticipation" groups required in public pro "Democratic;" prevents government from be repression. grams such as urban renewal, model cities, coming so bad that it provokes fatal resent The extreme anti-blacks are angered e-ven antipoverty, or air pollution are pretenses. ment; and holds together a majority of votes by the sops Daley gives to the blacks; and The effect of the machine's systematic re for the ticket. black Chicagoans, although they vote mostly pression is the muting of protest, incalculable The party organization is constantly for the Daley Democratic candidates when stagnation of the general citizenry, and loss handling polltical brokerage arrangements they vote, are now expressing themselves elo of progress to Chicago. The increase in the with Chicago interests, principally with the quently by staying home in sensationally number of alienated Chicagoans is incredible. business and financial interests. There are larg·e numbers. "I just can't get them out to The likelihood of an apocalyptic solution is also deals with Chicago labor, which tags vote," one precinct ca-ptain told his commit great. along after Chicago business; with shady teeman. Neither can anyone else, yet, except For the committeemen who live off politics, businesses, such as slum operators and pre two black independent Democratic aldermen, Daley is the best they have had. One com emptors of profitable blllboard sites; and A. A. Rayner, Jr., and William Cousins, Jr., mitteeman explained: "He is a good family even, at some levels, with the unmentionable who won elections over machine candidates man. No scandal around him. He works criminal businesses called "the syndicate." in black, middle class wards in 1967. Despite hard. He gives you your share of jobs, and Richard J. Daley is an able party head and warning and prodding, the party command good ones too." If he stepped down, the election winner, but as mayor he is not quite thinks only in terms of sops, and turns its committeemen would try to elect someone modern enough to enable Chicago to meet back on the perceptive recommendations for a.s much l~ke him as possible. . the needs and challenges of modern times. city action made by the Kerner Commission. These are some facets of a Chicago which He has kept most of his conservative, sober As a group, black Chicagoans do not live the convention delegates and television view views from the days of his youth. He opposes nearly so well as white Chicagoans, and the ers are not likely to see. Some day this Chi -city planning because it would take away disparity is growing. In Chicago's Widening cago will change. It has to, if Chicago is to from the party the profitable decision-mak Color Gap, sociologist Pierre De Vise tells us survive and :flourish. It will change when the ing on city development and publlc works, that, compared to the average white Chi business and financial interests perceive the and he follows literally the famous admoni cagoan, the average Chicago black is younger damage Chicago sustains under the current tiion of the great Chicago planner, Daniel by ten years, half as likely to be in a craft system and shift their support to programs Burnham: "Make no little plans." He makes job, one-third as likely to be a sales person and policies that genuinely serve the inter no city plans at all. or manager, three times as likely to be a ests of all the people; or when social up To give an appearance of planning, how laborer, and eight times as likely to be a heavals compel a change; or when there is a ever, the city administration issues and domestic. Black fam111es are one-fifth larger, shift at the polls. But so far in 1968, Chi withdraws beautifully printed but non-bind have only two-thirds of the income, and cago has not yet shown signs of changing. ing documents and employs a half-time Com occupy housing units one-fifth smaller, five missioner of the Department of Redevelop times more dilapidated, and three times more ment and Planning. The main function of substandard, but pay just as much rent for ·the Department is to give a facade of ap- their inferior housing. TEACHING CONSERVATION TO proval to decisions made elsewhere and espe Chicago's public schools are deeply segre cially to proposed acts of pillage such as the gated. More than half the enrollment is black. YOUNG CHILDREN building of expressways along the lake front, More than sixty-seven per cent of all high the real estate promoters' development of air school pupils and eighty-four per cent of all HON. BIRCH E. BAYH rights over lakefront railroad tracks, or the elementary school pupils attend segregated proposed rape of twenty-seven square miles schools-that is, schools ninety per cent or OF INDIANA ·in Lake Michigan for the super-profitable more alJ. white or all black. Black school dis IN THE SENATE OF THE UNITED STATES construction of an atrport. In all these cases; tricts are uniformly lowest in both reading Thursday, August 1, 1968 the immediate profit to the central business skills and percentage of certified teachers. In area a.nd the promoters outweighs the inter one black district, only eight per cent of sixth Mr. BAYH. Mr. President, it is of prime est of the majority of Chicago citizens. The graders are normal readers. Black teachers importance that young Americans be refusal to plan in the general interest has and principals are assigned overwhelmingly given every opportunity to become ac done great harm to Chicago. to segregated black schools. For many years Daley works hard as party chairman and the Board of Education has worked hard to quainted with our Nation's natural re as mayor, and he is as good and conscientious maintain segregation by gerrymandering sources, man's basic environment, and a mayor as his personal views and his para school districts. The only significant break in the values of conservation. I was very mount loyalty to the Democratic Party per the pollcy has come with a modest bussing pleased, therefore, to learn that a pilot mit. Except for slighting the ghetto by failing program in 1968; but, to confirm the basic education program for elementary to provide all the extra help it needs to keep policy, Daley this year broke his promise to school children, which will give them up with the rest of the city, he keeps the es follow recommendations of a blue ribbon ad firsthand knowledge of conservation mat sential services functioning fairly well-ref visory commission and reappointed to the use collection, fire protection, water distri Board of Education the board president and ters, has begun to operate in Monroe bution, sewage disposal, street repair, snow vice president who are the principal advo County, Ind. The soil and water con removal, and the other a-ctivities whose inter cates of the status quo policy. servation district of that county is spon ruption would immediately bring down a As a result of bad schooling, poor job train soring this pioneer effort, and Indiana government. Adequate police protection is a ing, massive job discrimination, enforced University is cooperating by providing August 1, 1968 EXTENSIONS OF REMARKS 24855 the services of student teachers who are site were inspected, and students learned that community, and he wtll be sorely missed working toward a degree in elementary sink holes and caves are a natural feature by those of us who were touched by his of limestone country. presence. education. During the spring semester Joe Lamendola, Over 200 children have received in biologist of the Indiana Department of Nat The following article from the New struction in conservation problems and ural Resources, spoke to a large group of stu York Times on Sunday, July 28, 1968, have been able to participate directly in dents about the needs of wildlife. detatls some of the highlights of James experiments and conservation activities Ned Woodward, Monroe Lake· conservation Desmond's career: in the field. The supervisor of the Mon officer, spoke about migrating birds and told JAMES DESMOND IS DEAD AT 59-DAILY NEWS roe County Soil and Water Conservation how special areas in the new reservoir have POLITICAL WRITER--cOLUMNIST WROTE BIOG• District, Barbara Restle, who has written been designated off limits to power boats to RAPHY OF ROCKEFELLER-8ERIES ON TAXES a very interesting and informative article insure resting and breeding places for ducks. WoN AWARD describing this educational innovation, A state forester, John Datena, led student James Desmond, a political writer for The groups into wooded areas identifying trees Daily News, died of cancer yesterday in Mount points out that- and explaining plant succession. The forester Sinai Hospital. He was 59 years old. Formerly The program goal is to give students an showed how to estimate the height and board a resident of Bedford H1lls, N.Y., he had lived awareness of natural forces at work in the feet of trees by using a tree-measuring stick. at the Tudor Hotel since the death of his land. The regular teaching staff at Washington wife two years ago. School was encouraged to introduce conser Governor Rockefeller, the subject of a biog I ask unanimous consent, Mr. Presi vation ideas into their classes in art, math, raphy by Mr. Desmond that was published dent, that this article, which was pub biology, geography, and history. For the first in 1964, issued the following statement on lished in Soil Conservation in the July three grades, art projects proved most mean his death: 1968 issue, be printed at this point in the ingful in putting across concepts in con "The loss is a heavy one to all of us in and RECORD. servation. out of government who knew him. His in There being no objection, the article Teachers had the benefit of a wealth of sight, his integrity and his ab1lity made him was ordered to be printed in the REcORD, educational materials from such sources as one of our nation's most respected Journal as follows: the Massachusetts Audubon Society, National ists. Mrs. Rockefeller and myself treasured Audubon Society, the Soil Conservation So his friendship. We both express our deepest STUDENT TEACHERS JOIN IN DISTRICT PROGRAM ciety of America, Boy Scouts of America, and sympathy to his family." To GIVE CHILDREN THE FACTS OF CONSERVA- the Soil Conservation Service. The tall, slender, convivial Mr. Desmond TION The Washing.ton Township Farm Bureau was a specialist in state political affairs. His (By Barbara Restle) donated $75 for a conservation library, and a column of analysis and comment, "Albany A pilot program that gives a continuing portable library rack was built to hold the Line," appeared regularly in The Sunday conservation education to children from the books. The new library includes information News. first to seventh grade has been started by the on the precarious balance of nature, mam Since 1944 he had covered every national Monroe County Soil and Water Conservation mals and birds, geology, and water. To political convention and except for his 111- District in Indiana. broaden the picture for the midwestern child, ness would have been accompanying Gover Student teachers from Indiana University a few books deal with arctic and tropical nor Rockefeller on the campaign trail. in Bloomington and other volunteers in the wildlife and conservation problems. In 1952 he and Joseph Martin received a George Polk Memorial Award for a series in district help teach the 1-hour-a-week classes. AWARENESS OF RESOURCES District supervisors initiated the program, The News that led to the payment by the the first of its kind in Indiana, at Washing The goal of our district is to give students Treasury of $10-million in unclaimed re ton Township Consolidated School in Bloom an awareness of natural forces at work in funds to taxpayers. ington. The student teachers are fulfill1ng the land. Hopefully, the conservation classes "Nelson Rockefeller: A Political Biography,'' requirements for a degree in elementary edu- will encourage better citizenship by develop was praised in The New York Times as "a 081tion under Professor Prevo Whitaker of ing a deeper understanding of natural re friendly and understanding" work that Indiana University, who is also secretary sources. "clearly refiects Mr. Desmond's wide under treasurer of the district. Professor Whitaker says, "We must always standing of professional politics, how nomi Professor Whitaker, Wayne Fix, SCS work take advantage of new ways to use our nations are won and lost and how Rockefeller knowledge to help deal with the growing won one and lost another." unit conservationist, and the author held Mr. Desmond was born in Brooklyn on meetings with the Washington school prin scar,eity in world resources. In our commu nity we have had many willing citizens to Aug. 24, 1908, and grew up in Yonkers, cipal, teachers, and others to develop plans where he joined The Yonkers Statesman in for the course. help us along our way. We started with the supervisors of our district contacting school 1930. He later worked for The Associated A CUSTOM-TAILORED COURSE administrators and enlisting the help of Press, The New York World-Telegram and The course may touch on any phase of qualified technical personnel and talented PM. He joined The News during World War man's relationship to his natural environ local citizens. During the entire semester I II. ment, from how the White River got polluted can't remember anyone turning down our re Surviving are a son, Michael of New York; to how many trips in 12 hours a bird makes quest for assistance." a daughter, Mrs. Shila D. Schultz of Oroville, away from her nest hunting insects. Calif.; a brother, John W. Desmond, assist The conservationists assisting with the ant Sunday editor of The Times; a sister, Mrs. program make an effort to custom fit the Walter Fitzpatrick of Las Vegas, Nev., and subject matter to specific age groups, giving JAMESDESMOND:NEWSPAPERMAN 10 grandchildren. the teachers opportunity to carry conserva tion into many areas of study. The fifth grade has integrated a new sci HON. BERTRAM L. PODELL ence program with conservation interests by OF NEW YORK MAKING THE RECORD CLEAR experimenting in making soil. They observe what happens when leaves, sand, and fertil IN THE HOUSE OF REPRESENTATIVES izers are mixed and let stand for a period. Wednesday, July 31, 1968 HON. PAUL J. FANNIN The sixth grade has been given many class Mr. PODELL. Mr. Speaker, the people OF AIUZONA hours of instruction on land use. During one IN THE SENATE OF THE UNITED STATES session, a conservationist discussed land of the State of New York, and more par capab111ty and explained why some of the ticularly its political world, were sad Thursday, August 1, 1968 "h1lls and hollows" of southern Indiana are dened this weekend by the untimely Mr. FANNIN. Mr. President, once again not suitable for farming. passing of James Desmond, Albany cor we are on the brink of a presidential All the classes have field trips to see actual respondent for the New York Dally News examples of the things discussed in lectures. election campaign in which political All 220 children were taken to their new and an esteemed authority on political passions reach a fever pitch. Against school site in four shifts. The older children affairs in our State. this background I think it is wise for were put to digging a 2-foot-deep hole to ob I first met James Desmond as a mem the Senate and the Nation to recall some tain son samples at various depths and see ber of the New York State Assembly disconcerting events as in the presiden the ditferences between topsoil rich with and I soon learned to admire his profes tial campaign 4 years ago. organic matter and the deeper subsoils and sionalism, value his wisdom, and to parent materials. Earlier in the semester all At that time there was unleashed one the students had run the experiments in treasure his friendship. He enjoyed the of the most intemperate and nnwarrant growing peas or corn in topsoil and subsoil envy of his colleagues for his craftsman ed attacks ever mounted against a can an4 to observe the health of the plants. ship, and his integrity was a source of didate for public office. I refer of course All the classes also planted conifers to comfort to the publlc officials and po to the attack against Barry M. Gold serve as a windbreak for the future play litical leaders who constituted his beat. water, who was at that time the junior ground. Three sink holes on the new school He enriched the political life of our Senator from the State of Arizona. The 24856 EXTENSIONS OF REMARKS August 1, 1968 extent and depth of this attack, the dis ing. Distortion of the Arizona senator's re The scurilous nonsense was accelerated tortions willingly and actively dissemi marks was practiced with sheer brutality. through the general election campaign as nated, the dire consequences predicted To quote a foreword to the book, "In one the opposing party and many others of if he were elected, have besmirched the excruciating chapter-appropriately titled 'A Liberal ilk leaped in for the kill. For sheer, Diary of Defamation'-he traces the long, vindictive fury, their wlld rantings have character and credibility of those who livid scar of hate and fear that ran from one never been equaled in a presidential cam took part. end of the campaign to the other." paign. Now we face another election. Four Lokos exam1net3 the issues that dominated It was rather sickening to hear the ex-ball years give friend and foe alike a measure the campaign and describes how to the hor player Jackie Robinson, for example, declare of historical perspective and I hope that ror of Goldwater and his associates, they that "Barry Goldwater, at best, is a hopeless with this perspective we can all be more "saw their positions distorted beyond recog captive of the lunatic, calculating right-wing rational and statesmanlike 1n our cam nition, their motives impunged and their expression. A challenge must be issued to the paigns. It is with this purpose 1n mind sanity questioned." Negro people to assure that Goldwaterism The lunatic connotation was a low blow and extremism and anti-Negroism will be so that I ask unanimous consent to have brutally defeated that they will never a;gain printed in the RECORD an article entitled and someone seems to be stm at this in sidious business. It was rather disquieting to threa;ten the future of America." "Reflections on Hysteria, 1964-The read a story in Tuesday's edition of The Ari Roy Wilkins declared flatly that a Gold Campaign of Fear," written by Walter zona Republic stating that former President water victory would bring about a police Zipf, and published in the Sun Valley Eisenhower considered Goldwater "nuts" state and the late Dr. Martin Luther King Spur Shopper. I do this with the hope during the '64 campaign. Thi~. according to forecast "a dark night of social disruption if that it may 1n some measure prevent the an Arthur Larson, one-time White House Barry Goldwater is elected president." recurrence of the campaign directed consultant and speech writer, in a preview Walter Lippmann denounced Goldwater as "an enemy of the poor" and George Meany against my good friend Barry Goldwater. of his Eisenhower biography. There being no objection, the article Such a remark, if true, is unworthy of a compared Goldwater's rise to that of Hitler, former president and why did such a crack "to whom no one paid much attention until was ordered to be printed 1n the RECORD, find its way into a news story about the suddenly the crackpot took over." as follows: Eisenhower book anyway? Who is st111 Huber.t Horatio Humphrey, who this year REFLECTIONS ON HYSTERIA, 1964-THE throwing the knife and why? aspires to be elected president of the United CAMPAIGN OF FEAR The sad part of the whole matter is that States, in a speech at Terre Haute, Ind., (By Walter Zipf) the heat against Goldwater was first gener tossed out this rot, "Mr. Goldwater's free dom is the freedom to be uneducated, to be "0 judgment! Thou art fled to brutish ated by men in his own party before he was sick, to be hungry, to be unemployed." beasts, ever nominated at the Republican National Convention in San Francisco. The once-respected Saturday Evening Post And men have lost their reason!" delivered the most venomous attack of all, As Lokos notes, admit that Goldwater I thought of thO!;e lines from the third act threw away the political rule book on the day in which, among other things, it said "Gold of Shakespeare's Julius Caesar as I finished water is a grotesque burlesque of the con reading a book just coming to my desk, he accepted the GOP nomination with the servative he pretends to be. He is a wild man, "Hysteria. 1964" by Lionel Lokos det3cribing unfortunate but greatly overplayed remark a stray, an unprincipled and ruthless politi the monstrous fear campaign against Ari near the end of his speech-"Extremism 1n cal jujitsu artist." the defense of liberty is no vice--Moderation This from a magazine that so sanctimoni zona's Barry Goldwater when he was Repub in the pursuit of justice is no virtue." lican candidate for the presidency four years ously condemned extremism in others. ago. This was just what the opposition was This sort of scurrilous, underhanded as Barry Goldwater, Public Enemy No. 1. waiting for and the j.ackals shot him down sault on Goldwater, the man and the candi Barry Goldwater, the man who would drop with it but many political observers w111 date for the presidency, went on and on. The Bomb and defoliate the little girl's daisy. tell you that the Goldwater cause was lost Everything about him was so distorted that Barry Goldwater, the man with the stench before he ever made his acceptance speech. his campaign didn't have a chance to click. of fascism. Republicans like Rockefeller, Romney and The Arizona senator made some fine That's what Goldwater's detractor'S said Scranton, governors all, dealt the mortal speeches during the campaign but his treat about him, that and worse as the peddlers of blows before the convention assembled. ment was so shabby, so cruel, so vindic-tive hate and fear warned there was a monster in Romney's choicest anti-Goldwater remarks and his battered image so smeared that the our midst who threatened to devour us all. furnished potent ammunition for the oppos majority of the American people just left him The wild, gutter rabble-rousing against a. ing party during the general election cam bleeding and bruised by the roadside. good American whose worst sin was a sincere paign, such as, "The Republlcan convention Time and again he made his position crys patrioti~m and an inclination to speak the wm either take actions that will enable the tal clear on the major issues on which he truth as he saw it now sounds silly and ridic party to provide leadership the nation needs, had been maligned but the message didn't ulous-even laughable. But there was noth or commence the suicidal destruction of the get across. ing funny about it four years ago, during the Republican Party." Neither common decency nor ordinary most calculatingly vicious campaign of char Among other bitter things, Scranton said, common sense prevailed. He was crucified by acter assassination of a public figure this "I reject the echo we have thus far been detractors who should be proud of them country has ever known. handed-the echo of fear and reaction, the selves. They helped write the blackest, most LokotJ observed that au the denunciations echo from the never-never land that puts our shameful chapter in American political his of previous presidential c'andidates put to nation on the road backward to a lesser place tory. gether, including Lincoln, were almost be in the world of free men." Where are those detractors now. Well, some nign compared to the new high in hysteria. The Pennsylvania governor continued to of them are in the Republican Party still reached in the infamous campaign of 1964. spread his venom as he tossed out this blast, trying desperately to save the party for During a period of some 10 months, Barry "Goldwaterism has come to stand for a themselves, singing the old refrain, "the other Goldwater was accused of: whole crazy-quilt collection of absurd and fellow can't win." Wearing the bloody mantle of Adolf Hitler. dangerous positions that would be soundly As I think back, after reading Lokos~ book, Fomenting a racial holocaust. repudiated by the American people in one indisputable fact cllngs to my memory. Advocating a nuclear policy that would November." We in Arizona who know him best, exclud destroy half the world. Governor Rockefeller, in the California ing the political opportunists who are op Being hell-bent to tear up all Social Se primary, made a. noose of the word extremism posed to him, have never considered Barry curity cards. and looped it around Goldwater's neck. Goldwater, sick, mentally or otherwise, fool Branded as a lunatic. He expressed fear of the fear that if Gold ish, dangerous or in any sense a wild man. Plotting the destruction of the Republican water were nominated the Republican Party In his first experience politically, he was Party. would go down the drain and the two-party elected to the Phoenix City Council back Paving the way for a totalitarian govern system in America, consequently, would be about 1948 and took the lead in establishing ment. destroyed. a clean, efficient form of government which Sending American labor down the road to The spoilers, the architects of the policy of has stood the test through the years. We wage slavery. rule or ruin, had done their work well. What shudder to think what would have happened Trying to et3tabllsh a. link between the Rockefeller had begun in the spring, Scran if Phoenix, in its greatest period of growth, right wing in the U.S. and Bavaria, because ton finished in June and at the convention had been saddled with the type of govern he happened to take a post-convention trip painting for the American people the picture ment Goldwater and his colleagues threw out. to Germany. of a half-crazed leader indifferent to the In 1950, he had a lot to do with electing Goldwater lamented that the whole cam needs of the American society at home and Boward Pyle as the first Republican gover paign against him was based on fear of him eager to plunge the nation into war abroad. nor of Arizona in 22 years. He ran success and Lokos offers a relentless rebuttal to the SOme time after his defeat, Goldwater said, fully for the United States Senate in 1952 hysteria of 1964. He calmly but devastatingly "Rockefeller and Scranton cut me up so bad, against Ernest W. McFarland. shows the difference between what Gold there was no way on God's green earth that His campaign speeches did not bear the water really said in some of his tpeeches and we could have won. I knew it the day after mark of a wild man. To the contrary, he what some of the reports quoted him as say- the convention." showed a deep understanding of state and August 1, 1968 EXTENSIONS OF. REMARKS 24857 national problems and his remarks certainly "He said often that he felt safer over there Washington University Hospital for cuts and made good sense. than at home," it was added. released. From the time he entered the Senate, Gold A member of the 1st Air Cavalry, Corporal water was given preferential treatment by his Tapp was a chief gunner. Two CONVICTED OF ASSAULT IN GUNFIGHT GOP colleagues, partly because he had de In high school, he was on the soccer and WITH POLICE throned McFarland, the Senate majority wrestling teams. (By Lawrence Feinberg) leader, and partly because he displayed real Surviving, in addition to his parents, are a EASTON, MD., July 19.--Clyde Edward Laws ability and promise. brother, William T., 16, and two sisters, Eva and Thomas Franklin Dorman were convicted Many of the Democratic senators liked and May, 19, and Cathy, 6. today of assault with intent to murder two respected him. He was given important com Montgomery County policemen in a gunfight mittee assignments. while making their getaway after a super After his re-election in 1958, the Republi market holdup. cans made him chairman of the Senate cam FIREARMS LEGISLATION The pair, both Midwesterners who have paign committee and he went about the served jail terms in several states, were also country helping raise money to re-elect GOP convicted of the armed robbery of about senators and making many, many speeches. HON. JOSEPH D. TYDINGS $1500 from the Kroger Food Store at 13701 In those days, Goldwater was respected and Georgia ave., Wheaton, on Feb. 8, 1967. The his remarks treated with respect by the OF MARYLAND shoot-out with the police took place several press of the country. There wasn't the re IN THE SENATE OF THE UNITED STATES minutes later-about two miles down the motest suggestion that he was on the lunatic Thursday, August 1, 1968 highway. fringe, that he was unsound or reckless, a A Talbot County jury took 1 hour and wild man incapable of wise and prudent ac Mr. TYDINGS. Mr. President, last 15 minutes to reach the verdict at the end tion and thinking. week I received from a Maryland constit of a two-day trial. Talbot Circuit Court Judge That didn't come until he sought the high uent a terse note that I should like to Harry E. Clark scheduled sentencing for· July est office in the land. No man, especially one share with Senators: 31. Each of the defendants faces up to 50 in the prime of life, could disintegrate so HYATTSvn.LE, MD. years imprisonment. rapidly into the atrocious character painted One week ... one newspaper. Twenty-nine In May they were each sentenced to 20 by his enemies. Think it over! incidents involving firearms in the hands o! years' imprisonment after being convicted Arizonans should have rallied behind Barry private citizens. Ten deaths caused by these of kidnaping a drugstore clerk as they com Goldwater when the political assassins private possessors of firearms. Fourteen rob pleted their getaway. started after him. They knew he was not the beries conducted at gunpoint. Montgomery County Deputy State's At kind of a. man they S!tid he was. But many of How long must me wait for strong gun leg torney Andrew L. Sonner said he will seek us in Arizona. who should have really helped islation? a trial soon of Rose Haas Solie, 43, 4513 just stood by and did little or nothing and he Sincerely, Sangamore rd., Bethesda, who has been in barely carried his own state against Lyndon KERRY RAINES. dicted as an accessory for sheltering the men. Johnson. Laws, 40, was arrested in Missouri last One more remark and I am done. Mr. President, the letter speaks for May 19. Dorman, 37, was captured by the FBI What were the predictions in 1964 if Gold itself. I ask unanimous consent that the two days later in Indiana. Both had been water were elected president? articles be printed in the Extensions of placed on the FBI's list of 10 most-wanted The frightening picture of what he would Remarks. criminals. do in Vietnam. Certainly he would accelerate There being no objection, the articles At the trial police Pvts. Raymond J. Brown the war and American boys would die there. Jr. and Theodore 0. Chick, both of the That he would provoke racism and riots on were ordered to be printed in the RECORD, Wheaton substation, testified about the gun the streets of America. as follows: fight, which occurred after they stopped the That he would bring America to the brink [From the Washington Post, July 21, 1968] defendants' car at the corner of Georgia of economic ruin. EMPLOYEE RoBBED OJ' NEARLY $2000 Avenue and Wiseman Road. Well, where has Lyndon Johnson taken us Brown said Laws walked toward him "with during his last four years in the presidency? Willlam Jordan, an employe of the Peel a smile on his face" and shot him in the side Cleaning Service, gave up nearly $2000 abou·t from an arm's length away. The policeman 11:40 a.m. yesterday to two holdup men who has recovered. entered the store at 963 Calvert st. nw. and In the gunfight that followed, Chick said forced him to open the sate and cash regis· MARION TAPP, 21, DIES IN VIET shots were also aimed at him but neither ter at gunpoint. he nor Brown was able to identify Dorman ACTION as the second gunman. [From the Washington (D.C.) Post, July 20, However, Clement L. Lanham, head cashier HON. CLARENCE D. LONG 1968] of the Kroger store, testified that both Laws THREE ROB SAVINGS AND LoAN, SUSPECT HELD and Dorman took part in the robbery. OF MARYLAND Det. Sgt. Richard F. Kitterman said two IN THE HOUSE OF REPRESENTATIVES Three men in their 20s, all armed with re volvers, took about $1000 from a cash drawer laundry slips with Dorman's name on them Wednesday, July 31, 1968 at the Franklin Federal Savings and Loan As were found in the glove compartment of the sociation, 2381 Rhode Island ave. ne., yester car used in the getaway. Mr. LONG of Maryland. Mr. Speaker, day, police said. One was caught by FBI Detainers have been issued for the two Cpl. Marion N. Tapp, a fine young man agents as the trio ran off. men by Fairfax County in connection with from Maryland, was kllled recently 1n Police said the manager, Jacqueline Guy 25, a holdup at another Kroger store four days Vietnam. I wish to commend his bravery told them she and a teller were alone in the before the Wheaton robbery. and honor his memory by including the office around 1:45 p.m. when the men en PAm OF BANDITS ROB BANK NEAR SEVEN following al'ticle in the RECORD. tered. They made her open the door to the teller's cage and removed the money from a CORNERS MARION TAPP, 21, DIES IN VIETNAM-PORT drawer, she said. Two armed men held up the Willston Shop DEPOSIT MAN Kn.LED IN HELICOPTER ACI'ION As the men ran down Rhode Island Avenue ping Center branch of the Mount Vernon A 21-year-old soldier from Port Deposit, ne. two FBI agents driving past spotted them National Bank and Trust Company near Md., who told his !a.mlly he considered him and gave chase. A block and half away, the Seven Corners about 10 a.m. yesterday and self sa!er in Vietnam than at home bas been agents took Harry L. Brown Jr., 21, of 815 fled with $2900, Fairfax County police killed in action, the Defense Department said Maryland ave. ne., into custody. He was reported. yesterday. charged with armed robbery. The men were believed to have had a third Cpl. Marian N. Tapp was reported killed on accomplice waiting outside as a lookout. July 12 when a helicopter in which be was a FmM Is RoBBED BY "JOB SEEKERS" They abandoned a getaway car, which had gunner was shot down by enemy gunfire. A man who said he was looking for a job beeen reported stolen, near the scene of the SECOND TOUR OF DUTY pulled a revolver on the manager of the Ar robbery. Corporal Tapp, the son of Mr. and Mrs. row Window and Building Cleaning Co. yes Marton Tapp, was a 1966 graduate of Perry terday and escaped with $100, pollee reported. NERGO MINISTER TRADES GUNFIRE WITH RIDERS High School in Cecil county. Raised on his "I've never been a window cleaner," the IRASBURG, VT., July 19.-A Negro minister father's !arm, he joined the Army two man said as he aimed his gun at W1lliam who moved here with his family recently, months after graduation and "planned to Warner, 60, manager of the company at 931 traded gunfire today with assailants who make the military a career," a family spokes New York ave. nw., and three other employes. shot at his home from a passing car. man said yesterday. He took $100 from Warner's wallet after herd No one in the house was injured. The Rev. He served six months in Vietnam in 1967 ing the !our into a back room and making David Johnson said he did not know if any and returned in April of this year for a sec them lie down on the floor, pollee said. of the shots he fired hit the car. ond tour of duty, for which he volunteered. Warner, who was kicked in the side by the The minister and his wife and four chil "He just couldn't walt to get back," a robber and struck on the side of his !ace dren moved here two weeks ago from Sea relative said. - with the gun barrel, was treated at George side, Calif. 24!858 EXTENSIONS OF REMARKS August 1, 1968 Police said at least four blasts from a 12- One bandit ordered the bank's four cus bedroom of his home about 6:30p.m. Tues gauge shotgun were fired at the house. The tomers and seven employes to stand in the day by relatives. They said he had a bullet shots came from a car which cruised past rear by the manager's desk. While the man wound in the chest and a .38-caliber revolver the house twice. with the shotgun guarded the door, two of was found next to his bed. Reverend Johnson returned six shots from the others Jumped over the tellers' counter his second floor bedroom window and said and put the money from the four cash draw BANDITS GET $30,000 AT BANK HERE he wasn't sure whether he had hit the fleeing ers into mailbags. Four bandits, two of them armed with shot car. "Keep still-nobody move," one bandit guns, :fled with about $30,000 yesterday from said as they walked out the front door and the American Security & Trust Co. branch at THREE THOUSAND IN VIRGINIA DIED OF climbed into a stolen car, which they later 5911 Blair rd. nw., police reported. GUNSHOTS IN 5 YEARS abandoned at the Southwest Freeway and A shot was fired by one of the gunmen 4th Street. RICHMOND, July 19.-Firearms caused the during the holdup, but it went through a back window and no one was injured. The deaths of nearly 3000 Virginians in the five OFFICERS TELL OF GUN DUEL AFTER HOLDUP year period of 1963 through 1967, a Virginia bandits :fled in a car that had been reported Department of Health report disclosed EASTON, MD., July 18.-Two Montgomery stolen less than two hours earlier in North Thursday. County policemen testified today about their east Washington, police said. There were 249 firearm deaths among Vir dramatic gun duel with Clyde Edward Laws The robbers entered the bank about 2:45 ginia residents during the first four months and Thomas Franklin Dorman after a Feb p.m. and one of the gunmen ordered assist of 1968, the report said, and the figure is ex ruary, 1967, holdup. ant treasurer Milton 0. Jones, 57, to get into pected to top 800 before the year ends. Laws and Dorman, both itinerant Mid the head c·ashier's booth. More than half the deaths during the westerners, are on trial here for the armed Another bandit vaulted the counter and 1963-67 period, the report said, were suicides. robbery of about $1500 from the Kroger Food toured the five cashier booths and drive-in Homicides accounted for 35 per cent of the Store in Wheaton. They are also charged with window, gathering money, according to firearm deaths during the period and acci assault with intent to murder the two police police. dents 9 per cent. privates, Raymond J. Brown Jr. and Theodore The four men then ran to a car and took The number of firearm deaths reported Chick, both of the Wheaton substation. off at a high rate of speed. The car had been annually during the period indicated an an The policemen stopped the pair at the reported stolen at 1 p.m. from in front of the nual average increase of 5.4 per cent, with corner of Georgia avenue and Wiseman road home of its owner, L1111an J. Phlllips at 1842 the greatest percentage increase in homicides. a few minutes after the robbery. Capitol ave. ne., pollee said. It was found The 40 to 49 year age group was the most Brown testified that Laws approached him abandoned after the holdup at MBiple and common in firearm deaths, with more than "with a smUe on his face" and shot him in Grant Avenues, Takoma Park. half the homicides occurring in the 20 to 39 the side from an arm's length away. The year age group. policeman has recovered. DAPPER HOLDUP MEN ROB ARLINGTON BANK Chick said the gunfight followed as the two men sped away. They were arrested three Two young men, one of them armed, ONE MAN SHOT IN HAIGHT-AsHBURY-45 robbed an Arlington bank of more than ARRESTED IN SAN FRANCISCO VIOLENCE months later in the Midwest. In May, Laws and Dorman were convicted $19,000 yesterday morning, police reported. SAN FRANCISCO, July 19.-A man was shot here of kidnapping a drugstore clerk as they The two, described as well-dressed and and a policeman injured as violence flared completed their getaway. They were both wearing gloves, entered a branch of the Fi for the third straight night in the Haight sentenced to 20 years' imprisonment. delity National Bank at 1233 Jefferson Davis Ashbury hippie district. hwy, shortly before 11 a.m. One pulled a Michael Moore, 20, suffered a gunshot small revolver and forced. two tellers, the only wound in an arm. Police said it was not de GUN DUEL ERUPTS IN BANK THEFT people in the bank, to lle on the floor, police termined who fired the shot. Two policemen and three bandits ex said. Last night's outbreak followed the pattern changed gunfire yesterday after the $8500 The second man then scooped the money of previous disturbances. False alarms at holdup of the National Bank of Washington out of the cash drawers and from an open tracted fire trucks, which were called in to branch at 2844 Alabama ave. se. wall safe. assist. Police said they believed no one was hurt Police were targets of fire-bombs and in the shooting as 11th Precinct Pvts. Albert RoBBERY, RAPE TRIAL UNDER WAY debris when they were called in to assist. C. Lorraine, 25, and John J. Campbell, 28, Trial began yesterday in Prince Georges Officers made more than 45 arrests, bring chased the robbers to the corners of Akron Circuit Court for Eddie Nance, 21, charged ing the three-day total to about 100. street se., where they jumped into a stolen with rape, robbery and burglary during a Several stores were looted for the second car and escaped. gang invasion of an Accokeek home on Jan. time and broken glass again littered Haight The three men, two carrying pistols, en 15. Street. Sniper fire was reported for the first tered the bank about 12:40 p.m., police said. A jury of nine men and three women time in the series of disturbances. One walked up to the guard, stuck a gun in heard the victim's husband tell how four There were 200 officers in the area at the his stomach, disarmed him, and said, "This men came to his home and asked to borrow height of the disturbances, and Mayor Joseph is a holdup." an automobile Jack and then to use the Alioto warned of tougher enforcement. The ten employees and customers were telephone. "Drug peddlers are not going to use the ordered to lie on the :floor as one holdup man This was the prelude to an evening ram Haight-Ashbury neighborhood as a rendez vaulted the tellers' counter and cleaned out page during which the man's 60-year-old rous for idle and unthinking youngsters," four cash drawers. wife was raped, the eldest son beaten, five Alioto said. The second bandit held a gun on the family members tied up, the house ran In disorders elsewhere: customers and employes, while the third sacked and valuables taken. Two teen-agers were wounded by shotgun stood at the door with a gun, the pollee said. "This fellow right here," said the victim's pellets in a rock-throwing spree by 250 As the robbers were leaving, one of them husband as he pointed to Nance. "He was youths in Akron, Ohio, tonight despite a fired a shot into the wall. This attracted the the one requesting the use of the phone . . . dawn-to-dusk curfew that was extended attention of Lorraine and Campbell, who "He shoved me aside and ran into the tonight following disturbances earlier in were on foot nearby. den. When I got there he was standing in which 110 persons were arrested. The policemen raced after the men, one of front of the television with a drawn auto Police and National Guardsmen used tear whom fired two shots at them. Lorraine fired matic." gas to disperse the mob. A bar owner was two shots in return. Nance, who is listed at 859 51 st. se., did arrested on charges of firing the shotgun not testify yesterday. His attorney, George into the crowd. LONE BANDIT ROBS HOWARD JOHNSON'S P. Lamb Jr., repeatedly challenged witnesses' In Seattle, two policemen escaped with ab111ty to identify Nance. minor injuries in a disturbance during which A holdup man took $94 from the Howard Johnson's Motor Lodge in Silver H111 yester Awaiting a separate trial on the same firemen, extinguishing an auto fire, were charges and sodomy is Charles W. Alston of pelted with stones by a group of 50 to 60 day. Prince George's County police said the Washington. A warrant has been issued for young people. Some looting was reported the arrest of a third man, Francis Delllly Jr., early today. bandit entered the motel's lobby at 3 a.m. and asked Marcus L. Night, the night clerk, an escapee from Clifton T. Perkins State to change a $1-blll so he could make a tele Hospital. [From the Washington (D.C.) Post, phone call. He then produced a gun and July 19, 1968) forced Night into a rear room before fleeing JET FORCED TO CUBA WITH FAKE GRENADE FOUR POSING AS MAILMEN ROB BANK OF $8,000 on foot. (By Ben Funk) The First Na..tional Bank of Washington, (From the Washington (D.C.) Post, July 18, MIAMI, July 17.-A DC-8 jetliner forced to 800 Independence ave. sw., was robbed of 1968] fly to CUba by a desperate, Spanish-speaking $8000 yesterday by four bandits dressed as gunman who said "Fidel ordered me back" mailmen and wearing kerchiefs over their SoUTHEAST MAN's DEATH Is RuLED A SuiCIDE was returned to Miami this afternoon with faces, police sruid. The death of Rudie Wrenn Jr., 35, of 832 out its passengers. Reva Martin, 54, a teller, said the robbers Barnaby st. -se., was ruled a suicide yesterday The 57 passengers who had been left be entered about 9:50 a.m. She said three car by the coroner's office. hind in Havana, were :flown back in a char ried pistols and the fourth had a shotgun. Pollee said Wrenn was found dead in the tered plane late tonight. August 1, 1968 EXTENSIONS OF REMARKS 24859 National Airllnes Capt. Sidney L. Oliver, engine running. Tell operations to stay TRAIL OF ABDUCTIONS, MURDERS, RAPE LEADS the pilot, said Cuban authorities refused to away.'' To CAPTURE OF OUTLAW let him bring back his passengers because of "Keep well away from the aircraft," Oliver (By Peter A. Jay) safety reasons. warned. "Any unusual activity and he's go An ex-convict, branded an outlaw and The interrupted Los Angeles-to-Miami ing to pull the pin. This boy's got it in his sought in Virginia and North Carolina on flight included a tense refuellng stop in New hand. I don't know if he'll pull it, but he's rape and kidnap charges, was captured yes Orleans during which the gunman threat damn certain he wlll." terday with three frightened teen-age girl ened to blow up the plane if any officials FBI agents and police stood by helplessly hostages huddled unharmed in a stolen car. came near the craft. as Oliver taxied to a stop at the far end of Edward Thompson Jr., 37, armed with a Oliver said the hijacker boarded the plane a runway on the gunman's orders. rifle and a revolver, was hemmed in by po in Los Angeles and was llsted on the pas It took exactly 10 minutes to top off the lice as he headed south through Greens senger list as "Hernandez." Ollver said he fuel tanks at 70,000 pounds. Then the plane boro, N.C., at about 4:30 p.m. yesterday. threatened to blow up the plane with a took off for Cuba. Two hours earlier, the bodies of the mother phony grenade that later turned out to be a of one young hostage and the father of an can of shaving lotion. [From the Wa.sh.ing.ton (D.C.) Post, other were discovered 100 miles to the north Stewardess Kathleen Dickinson acted as July 17, 1968] in an abandoned shed outside Roanoke, Va. interpreter for the hijacker, who Oliver said PoLICEMEN HELD IN SNIPER CASE Roanoke police said the victims, Hester S. was "extremely nervous." Miss Dickinson Freeman, 50, and J. Howard Davis, 46, both quoted the hijacker as saying: "Fidel has in TOMS RivER, N.J., July 16.-Two policemen and a businessman were arrested today on of the Roanoke area, had been shot in the dicated to me that I've got to go back to head. Cuba any way I can." charges they illegally sold the 59-year-old "I tried to pump him but I couldn't get revolver Angel Angelof used three weeks ago Mrs. Freeman's daughter Hester E., 17, any more than that except that he missed 1n the fataa sniper shooting of two persons in her niece, Matilda Love, 13, and Davis's 13- his family and friends very much," the 23- New York Oity's Central Park. year-old daughter Joanne Ellen were taken year-old Miami girl said. Ocean County prosecutor Robert H. Do from the car, which police said was stolen When they arrived in Cuba, Ollver said, the herty Jr. said the two Jackson Township po from Davis. hijacker "made a big show of unwrapping licemen bought the vintage .45-caliber Smith Col. Walter A. Burch of the Greensboro his hand grenade. It was a can of Old Spice & Wesson without a permit from a local police said the girls were "a little hysterical" shaving lotion." dealer. but unhurt. Relatives took them home to FBI agents met the crew when the four Roanoke last night, where they were inter engine craft touched down at 5:11p.m. EDT. Police Pvt. Frederick L. Matteson, 38, who viewed by Roanoke County Commonwealth's The return was a replay of a hijacking July was shot in the head and chest on July 2 Attorney Raymond L. Robrecht and Sheriff 1 when a Northwest Orient Airlines DC8 was in a struggle in which his partner lost his Oscar Foster. Robrecht, in a press conference early this forced to Cuba and came back to Miami life, WQS reported making good progress yes without its 86 passengers, brought back sev terday at the Washington Hospital Center. morning, said two charges of murder and eral hours later by an aircraft chartered by The Tenth Precinct policeman has been three of kidnaping were placed against the U.S. Government. removed from the critical list although his Thompson about midnight, after he and Today's hijacking marked the first time one condition is stiU considered serious because Foster interviewed each of the girls in their of the commandeered planes had stopped for fragments of a bullet are lodged tn the left home and evaluated their testimony. refueling before heading to Cuba. side of his brain. Foster said he will go to Greensboro later The refueling was accomplished in a tense, This caused paralysis of his right side, but today to serve the warrants and begin ex 10-minute scene in New Orleans after the hi he is regaining some movement, said Dr. tradition proceedings. jacker took charge of Fllght 1064 over Texas. Ronald W. Strong, a member of the Board Thompson, who arrest record dates to He threatened to blow up the plane with of Police and Fire Surgeons. He added that 1948, already faced rape, armed robbery and his so-called grenade if police got too close. a physiotherapist is helping Matteson with kidnap charges stemming from four other "I got disturbed at the New Orleans air exercises and that Matteson has started les cases in two western North Carolina counties port," the veteran pilot said. "He told us em sons in walking. over the past two months. In one of the war phatically that he didn't want anybody Matteson is able to "make his wants rants, he is accused of kidnaping a Hender around the plane when it landed." known" a.nd to answer simple questions but sonville, N.C., physician and his wife and Miss Dickinson said the hijacker ap has difH.culty remembering some events be drugging the doctor with his own mor proached her shortly after the plane left fore the shooting, Dr. Strong said. Only mem phine. Houston. bers of his fa.mily are allowed to visit him. Since May 8, he has led law enforcement "He had this thing in his hand," Oliver His wife has a room at the hospital. officials a chase of more than 400 miles said. "He called it a hand grenade and it through the hills of North Carolina and Vir ginia. A North Carolina judge formally de was wrapped up in a cloth and it looked like GUNMAN TRIPS, WD'E SHOT a grenade. He held it like a grenade." clared him an outlaw under an archaic and Ollver said the hijacker repeatedly pointed SANFORD, MAINE, July 16 (AP) .-A Dover, seldom used North Carolina statute. This his pistol at the phony grenade, threatening N.H., man who held his wife at gunpoint in a meant that he could be shot on sight by to fire. brother~ home apparently shot her acciden any citizen. When the plane arrived in Havana, Ollver tally tonight and was himself wounded by Police gave this chronology of Thompson's said, the dark-complexioned hijacker was the police trying to serve an assault warran,t. wandering flight, in which he before yester first person off and, walking jauntily, was Doctors at Goodall Hospital said the wife, day is accused of kidnaping 6 persons, escorted away by security guards. Marilyn Goodwin, 25, had one bullet in her raping two, assaulting a police officer and "I've got a Cuban in the cockpit with a head and her condition was extremely criti stealing four cars and an undetermined grenade in one hand and a pistol in the cal. Her husband, Ralph, 28, was wounded amount of cash. other," Oliver reported by radio as the plane by three bullets. On May 8, he was charged with assault winged over the Sabine Pass on the Texas Photographers entered the house with ing a Hendersonville, N.C., police officer, Gulf Coast. "I am being ordered to Cuba." police and took photographs of Goodwin Homer Reed, firing a wild shot from his re The flight had originated in Los Angeles holding a pl&tol to hit; wife's head as they volver and fleeing. and made a scheduled stop at Houston. It sat on a couch. KIDNAPS DOCTOR was 35 minutes away from a landing at New Goodwin had barricaded himself inside the Two days later, Henderson County Chief Orleans when Ollver reported that he no home holding his wife as a hostage and re Deputy J. Neal Grissom said, Thompson was longer was in command of the plane. fusing to surrender to the police. After some charged with abducting Dr. William Alex Oliver told the hijacker the plane had time he agreed to come out to talk with ander, a local physician, and his wife at gun 36,000 pounds of fuel, not enough to fly newsmen and emerged with the gun pointed point. Mrs. Alexander said Thompson told nonstop to Cuba. at his wife's head. them he was fleeing the police. Then the pilot reported to the New Or Witnesses 13aid he evidently tripped de Before releasing the couple, the Hender leans control tower that he was coming in scending the steps, lost his balance and the son County warrants say he forced Dr. Alex for a fuel stop, but warned that it would be gun went off, wounding his wife. Pollee sur ander to inject himself with morphine, dangerous to attempt to hold the plane on rounding the home returned the fire, wound Grissom said the doctor was not injured by the ground. ing Goodwin. the injection. "This character is requesting to go to New Thompson's next appearance was in the Orleans to get fuel," Oliver said, "but no one Armed rider-Unidentified motorcyclist Henderson County town of Green River, can deplane. No one can get close to the air drives through heart of York, Pa., Negro dis where he is accused of kidnaping a man plane except people to refuel." trict, which was quiet for the first time in . identified in warrants only as Beddingfield, Later, he told the tower, "Need enough six days of sporadic disorders.-(Caption) and a 17-year-old girl. The girl was raped, fuel to get into Havana and back out. Pull and police said Thompson fled on foot after two trucks up to airplane with a grenade. Two of the weapons that police in Greens Beddingfield intentionally wrecked the car. "Tell everybody in New Orleans to get on boro, N.C., say were found on the floor of a A week later to the day, Sheriff Leroy the ball. This guy is running a time clock car used by outlaw Edward Thompson, Jr. Reavis of Iredell County, southeast of Hen on us right now. We are going to leave one are shown behind driver's seat.-(Caption) dersonville, said an armed man found 22- 24860 EXTENSIONS OF REMARKS August· 1, 1968 year-old William Robert Lewis and a 14-year the shooting, in the 1900 block of 14th Street, stopped at a red light when a green sedan old girl companion parked on a country road of Theodore R. Lawson. occupied by four white men pulled along and kidnaped them. The crowd was attracted after Jonathan side. The man raped the girl twice, Reavis said, Barnes, 30, of 2015 15th st. nw., the New One of the white men shouted a racial robbed Lewis at gunpoint and drove off in Dunbar Hotel, was shot in an altercation epithet, police reported, then Sheppard was Lewis's new car with Lewis locked in the with another person-not a policeman-in shot. He was treated for an injured finger trunk and the girl in the car. the 1400 block of U Street. and released from the hospital. Lewis and the girl were later released un The incident occurred after a group of 20 One hour and 15 minutes later, Betty harmed and identified Thompson from pho persons reportedly had just returned to the Washington, 19, was shot as she stood talking tographs as their assailant, Reavis said. intersection from Mayor Walter E. Wash to a friend a few blocks from the first shoot Thompson is charged with rape, armed rob ington's house where they went to demand ing. The shot came from a blue and white bery and kidnap~ng in Iredell County war his resignation or the arrest of the two sedan said to be occupied by five white men. rants. policemen involved in Sunday's shooting. Miss Washington was treated at Johns Lewis's car w.as found abandoned in Yad Hopkins hospital for a lower-leg wound and kin County, 50 miles due north of Iredell TWO MEN ROB MARKET IN SOUTHEAST released. and just west of Winston-Salem. Shortly The Jumbo Supermarket at 3401 Naylor thereafter, a pickup truck was stolen from rd., se., was robbed last night of an unde MAN SLAIN IN APARTMENT LIVING RooM the Winston-Salem area. termined amount by two men--one armed Home Lewis Richards, 44, of 2802 Stanton The pickup truck did not reappear until with a sawed-off shotgun and the other with rd. se., was shot to death yesterday in the yesterday, when it was found near a shed a revolver, police reported. living room of an apartment at 3944 C st. se. in Roanoke County, about eight miles from Police said the men walked into the stm about 12:35 p.m., police said. the city, where the bodies of Davis and Mrs. open store at 8:50 p.m. and ordered every A gunman walked 1n and shot twice into Freeman were discovered. one down on the floor. They ordered a clerk Richards' chest as he was seated in the room, The victims, along with the three hostages to open a store safe, and when he said he according to pollee, who said Richards then recovered from Thompson's car, had been was not able to, one of the men hit him on staggered to a rear hallway and collapsed. missing since lunchtime Monday when Davis the head with the barrel of the shotgun, His assailant was last seen running down vanished while on his way to the Freeman police said. The clerk received no medical an alley behind the apartment house, police home. Mrs. Davis, looking for her husband treatment. said. later, found the Freeman house empty, lunch According to police an unarmed special on the table and a pot of coffee boUing un guard slipped out of the store during the attended on the stove. FORT MEADE SOLDrER SHOT IN OFF-BASE incident and tried to surprise the men ARGUMENT SEARCH STEPPED UP through the back entrance. Pollee said the man carrying the revolver fired once at the Army Spec. 5 Lloyd H. Edwards, who was At that point the search for Thompson shot in the left side of his chest early Fri intensified, as hundreds of police combed guard, missing him but driving him away from the store. day, was listed in satisfactory condition yes the Roanoke area and Thompson's home terday at Kimbrough Army Hospital, Ft. county of Rockingham, N.C., 50 miles to the Police reported that the men then emptied the store's cash register and :tied. Meade. south. Edwards, 26, a member of 889th Medical Thompson "knows all there is to know Detachment at Ft. Meade and a resident of about this area," said Rockingham County IN BALTIMORE-FOUR NEGRO YOUTHS SHOT Los Angeles, was shot in Boontown, near the Sheriff Carl Axsom. "When I was a deputy BALTIMORE, July 15.-An 18-year-old Negro base, apparently 1n an argument, police said. sheriff 1n 1948 we ran him through these burglary sus·pect was fatally shot by a white Maryland State police previously had re woods with bloodhounds. He was a hard one City policeman here yes·terday. A second Ne ported erroneously that the shooting was to catch." gro youth, 14, was wounded when police fired fatal. Thompson was charged with murder in at him, also as a burglary suspect. No arrests have been made in connection that case. He was later acquitted. Thompson Seven fires, two false alarms and incidents with the incident, police said. has been convicted of a number of other of glass-breaking in Baltimore's East Side crimes and was most recently released from followed the second youth's shooting and jail early this year, authorities said. prompted police to keep a heavy patrol in the BLADENSBURG COUPLE KILLED BY GUNSHOT Yesterday, Thompson's brother reported to area until 7 a.m. Pollee found a Bladensburg couple dead Rockingham County officials that he thought In two other separate incidents early yes of gunshot wounds 1n the head Saturday he had seen the defendant driving a car terday, two Negroes were shot from passing night 1n their apartment. They said the that matched the description of Davis's cars occupied by whites. deaths appeared to be a murder and suicide. missing 1968 Dodge, and accompanied by Gov. Spiro T. Agnew urged police officials The victims were Joanne L. Chandler, 87, three girls. to exert every effort to solve the shootings by and Herbert Hoover Chandler, 85, of 4275 Greensboro police set up roadblocks outside civilians. In identical telegrams to Col. Rob 58th ave. The couple's children, age 7 and 5, the city, but Thompson somehow eluded ert J. Lally, State Police Superintendent, and were at their grandparent's home in River them. He was nearly through the city before Baltimore Police Commissioner Donald D. dale at the time of the shooting, police said. police spotted him, surrounded his car and Pomerleau, Agnew said he was "gravely con Pollee said neighbors of the Chandlers re blocked it with a garbage truck. They said cerned over the reports." ported hearing two shots about 9:80p.m. Thompson surrendered quietly. In the fatal shooting of the 18-year-old, After breaking into the locked apartment, The suspect was taken to the Greensboro Patrolman Anthony E. F111piak, 54, said that police said, they found Mrs. Chandler lying City jail and subsequently moved, police as he was investigating a report of an aged on her bed. Her husband was lying on the said, to "an undisclosed location." invalid being threatened, a youth attempted fioor 10 feet away, a pistol in his hand, pollee Thompson's designation as an outlaw came to run from the house. The officer said he said. He was a maintenance man for the June 25, by Buncombe County Superior fired only after the youth ignored his warn Gateway Apartments, 4301 57th ave. court Judge W. K . McLean in Asheville, N.C., ing to halt. at the request of Henderson County Sher11f Filipiak, the recipient of six departmental James Kilpatrick. citations during 26 years on the force, was Greensboro police Col. Burch said he had arraigned on a charge of homicide yesterday heard of the statute being invoked only ARMY MATERIEL COMMAND'S in Central Municipal Court. SIXTH ANNIVERSARY "twice in my 27 years as a police officer." Judge Basil A. Thomas postponed the case Few other states have such a statute. A and released Filipiak in the custody of his Virginia State police spokesman said the Old district commander. Dominion abandoned a similar law more HON. ALAN BIBLE In the police shooting of the 14-year-old than a dozen years ago. OF NEVADA boy, he was shot after police were sent at midnight yesterday to a North Charles Street IN THE SENATE OF THE UNITED STATES [From the Washington (D.C.) Post, July restaurant to investigate a burglary report. Thursday, August 1, 1968 16, 1968] Patrolman Paul Boone reported that he SHOWDOWN DEFUSED NEAR 14TH AND U saw two people running from the basement. Mr. BIDLE. Mr. President, on August (By Leon Dash and WilUam N. Curry) One of them, he said, fired three shots at 1, the Army Materiel Command cele A confrontation between police and about him. brates its sixth anniversary of service to 100 persons was defused early yesterday sev The patrolman said he shouted twice for our Army and Nation. Established in eral blocks from the scene of the fa tal shoot the suspects to halt, fired two warning shots 1962, as a result of a major reorganiza ing of a Negro Sunday morning by white in the air, ordered them again to halt, then tion of the Army, the Army Materiel policemen. fired again. Command performs the wholesale logis In yesterday's incident, Theodore R. Jones. Officials at Maryland General Hospital said tics mission for the Army, including re 25, was arrested and charged with disorderly the bullet that hit the 14-year-old apparently conduct and another man said he was bitten passed through his chest and back. search, development, procurement, pro by a police dog. In another incident John M. Sheppard, 19, duction, supply, and maintenance. The incident occurred about 12:40 a.m. in was shot at about 3:15a.m. yesterday. Police Since the Army Materiel Command's an area that is tense with resentment over said Sheppard was a passenger in a car inception, its only commander has been August 1, 1968 EXTENSIONS OF REMARKS 24861 Gen. Frank S. Besson, a skilled logistical vanced materiel. Each member of the com Improved Aircrew armor for protection of planner and manager, and a leading au mand can take pride in its fine record of pilots and aircrewmen against small arms achievement. fire make use of ceramic tiles cured to fit the thority on transportation systems and "I join with all the men and women of chest and/or back. requirements. General Besson directs his the United States Army in saluting your A collapsible, fabric 55-gallon capacity huge command using traditional military accomplishments and in expressing confi water drum to resupply potable water to management techniques and a "vertical" dence that you will continue in the same platoon-size com!>at units in Vietnam. The type of management, in which over 50 tradition of excellence which you have cylindrical container can be transported by project managers have been assigned to established." vehicle, boat, or aircraft. A valve arrange expedite the development of high-pri Major organizational change in the AMO ment permits filling of canteens and other structure involved the establishment in Apr.il containers. ority weapons and equipment systems. of aU. S. Army Sentinel Logistics Command, In its sixth year of operation, AMC pro General Besson also operates through giving AMC a total of nine major subcom vided more than one billion pounds of high nine major subordinate commands, in mands. The new subcommand, to be located explosives in support of combat operations directing the efforts of research and de eventually in Huntsville, Alabama, will pro in Southeast Asia. velopment laboratories, depots, arsenals, vide logistical support to the Sentinel Sys A contract was awarded for development, maintenance shops, proving grounds, and tem, the Communist Chinese-oriented anti production and follow-on support of the test facilities. ballistic missile system approved for deploy Tactical Fire Direction System (Tacfire) ment last year. with the first system scheduled for fielding The Army Materiel Command task in Also established early this year was a U. S. in the 1970s. Tacfire will be employed at support of the current conflict in Viet Army Advanced Materiel Concepts Agency as battal·ion, division and corps artillery levels, nam is to keep one-half million fighting another step in assuring closer coordination and provide an automated capability for men supplied with the weapons and mu between AMC and the Army Combat Develop processing of field artillery, technical and nitions of war, and to sustain that effort ments Command in evolving new materiel tactical data. with necessary research, developmental, concepts and systems for the Army of the Advances in implementing Project ARMS and logistical programs. To this major future. (Army Master Data File Reader Microfilm effort by AMC is also added the mission Announcement was also made of the test System). Involving transmittal of supply ing of a new concept in worldwide logistics management data via microfilm to the Army of providing materiel support to the ad management, aimed at further improving in the field. This concept, after initial feasi ditional U.S. Army elements stationed supply service to troops in the field and at bility testing in 1967, has grown to a current throughout the free world, and of pro reducing equipment deadlines. Under the distribution of 400 sets of microfilm data viding materiel aid to our allies. new concept, AMC will assume responsi·b1lity being produced and distributed by the AMC During its 6-year history, the Army and accountability at depot level for se Catalog Data Office. It is anticipated that Materiel Command has met the chal lected "high dollar value" secondary items projected users of microfilmed data will total lenges, and has compiled a remarkable on a worldwide basis. In the past each over approximately 2,500 by July 1970. seas theater has been responsible and ac Procurement and logistical support of record of outstanding achievement, countable for all supply items physically lo Army aircraft also has been expanded by marked by increased efficiency and econ cated in the theater. Secondary items as AMC. In 1962, the Army aviation inventory omies. It is with pride that I salute Gen involved in this new concept are components stood at 5,692 aircraft, of which 49% were eral Besson and the 180,000 dedicated and repair parts used in the assembly and rotary wing aircraft. As of now, the inventory members of his command, for their in maintenance of major end items such as comprises more than 11,000 aircraft, includ dispensable contributions to the Army tanks, aircraft or weapons systems. ing 79% of the rotary wing type. Army air and our country. AMC has stepped up its program to secure craft flew 1.6 million hours in FY 1962, while civilian employee volunteers for extended in FY 1968 the total fiY'ing hours reached 6.7 I also ask unanimous consent to have overseas assignments in support of the Viet million, with more than one-third of the air printed in the Extensions of Remarks a nam effort. In addition, approximately 350 craft inventory operating under combat news release on the progress and achieve highly qualified civilians served as members conditions. ments of the Army Materiel Command of AMC quick reaction teams on temporary Production and procurement of 375 of the during the past year. duty in Southeast Asia. These teams provide Army's newest combat helicopter, the There being no objection, the news re assistance in meeting unforeseen short-term Cheyenne (AH-56A), was authorized early lease was ordered to be printed in the requirements in connection with the supply in January. Designed as a stable weapons and maintenance of equipment. platform, able to take off and land vertically, RECORD, as follows: Frank S. Besson, Jr., Commanding General it will :fly at speeds up to 220 knots. First ARMY MATERIEL COMMAND SHARPENS LOGISTI of AMC announced in May the establishment engineering test flight of the Cheyenne was CAL SUPPORT OF CoMBAT FoRCES of an AMC award to provide recognition to completed in September 1967. Increasingly effective logistical support of all AMC civilian employees who have com Newest version of the Chinook helicopter, combat forces in the field characterized the pleted three months or more of service in a the CH-47C, was accepted for the Army in past year's operations of the U.S. Army Ma combat area. Recognition devices will be the March. Improvements over earlier models in teriel Command (AMC), which observes its USAMC Certificate of Recognition and a lapel clude increased speed and payload and longer sixth anniversary on 1 August. emblem awarded in bronze for three months ferry range. Primary emphasis throughout AMC's huge of service, silver for six months, and gold A production contract was awarded in network of more than 190 arsenals, depots, for nine months. March for the OH-58A light observation heli laboratories, proving grounds, procurement In a personal message on the occasion of copter. It will have performance characteris offices and other facilities has been placed AMC's anniversary, General Besson told tics comparable to those of the Cayuse (OH- upon providing the finest possible weapons, AMC's more than 175,000 mmtary and civilian 6A). equipment and other supplies to front line personnel that they "may well be proud of The Army also formally accepted and de troops in Southeast Asia-enough and on AMC's increasingly responsive logistical sup ployed the AH-lG Huey Cobra, a high-speed time. port of our Modern Army." helicopter gun ship. In Vietnam, it has proved This heightened support of the war effort "Without question," General Besson its capability to perform searoh and target in Vietnam has been achieved through de pointed out, "we have substantially extended acquisition, reconnaissance by fire, multiple velopment of improved weapons and equip the soldier's essential ability to 'move, shoot, weapons fire support, and troop helicopter ment, expedited production and procure see and communicate'." support. As of May of this year, 838 AH-1G ment, and streamlining of both the organiza Improved items of clothing and equipment helicopters had been placed under contract. tion and procedures of the Army's largest which AMC is supplying in quantity to com Additional heavy-lift helicopter support logistics field command. bat forces in Southeast Asia include poplin has been provided for combat forces in Commenting upon the performance of uniforms, nylon reconnaissance boats, and Southeast Asia. Twenty-one CH-54A "Flying AMC over the past 12 months, General Wil waterproof wrist compasses. A new, light Crane" helicopters have been airlifted to liam C. Westmoreland, newly-appointed weight collapsable intrenching tool is also Vietnam. In addition to performing normal Chief of Staff of the Army, said: being provided. combat heavy lift support duties, the air "It is a pleasure to extend the heartiest Procurement of the M-f6 rifle has been craft has been credited with retrieving more congratulations and best wishes to the mem stepped up with selection of two additional than 300 downed aircraft since September bers of the Army Materiel Command as you production sources. Additionally, the previ 1965. celebrate the 6th anniversary of your serv ous single supplier will expand production Testing of the Army combat version of an ice to the nation" from 30,000 to 50,000 rifies per month. Air Cushion Vehicle {ACV) is underway. AMC, General Westmoreland, who recently com Among specific items developed recently acting under expedited procurement proce pleted four years. as commander of the U.S. by AMC agencies with direct application to dures, modified a commercial ACV into a mili Army in Vietnam, added: field requirements are: tary configuration, fabricated three vehicles, "The success of our fighting forces in Viet A new variable body armor being procured trained the crews, and delivered the equip nam is a direct reflection on the Army Ma for use in Vietnam. Ceramic armor plate is ment to Vietnam in 11 months. The ACV will teriel Command's ability to keep the fighting inserted into front and back vest pockets to travel at speeds up to 70 mph and is capable men supplied with the best and most ad- provide protection against shell fragments. of engaging the enemy with .50 caliber heavy 24862 EXTENSIONS OF REMARKS August 1, 1968 machine guns, 7.62 machine guns, and other Radar (FAAR), a highly mobile, lightweight, U.S. Army Missile Command won first place weapons. Vital components and personnel are high resolution radar capable of detecting for its film, "The Standardization Concept," protected against enemy fire up to and in aerial targets at extremely low altitudes, have in the management techniques category; the cluding .50 caliber armor-piercing rounds. been completed and tested. The F AAR is a U.S. Army Test and Evaluation Command The Armored Reconnaissance-Scout Ve component of the Chaparral/Vulcan Air De also took first place for "Quick Change Ar hicle (XM800) reached concept formulation fense System being developed to defend tistry", in the methods improvement cate stage in FY 1968. This is to be a small, light against low-altitude aerial attacks in the for gory; and Headquarters AMC won third weight, lightly-armored, highly-mobile ve ward battle zone. In addition to the FAAR, place in the management motivation cate hicle for use in the scouting and reconnais the system includes the Chaparral surface gory for "Cost Reduction is a Money Splendid sance missions of the armored cavalry and to-air guided missile system and the Vulcan Thing." scout platoons. It will replace the Ml14A1in 20mm gun, self-propelled and towed. First Film producers were Redstone Arsenal Pic the Army inventory. production units of the Chaparral and Vul torial Division, the Aberdeen Proving Ground Publicly exhibited during the past year can systems were completed and delivered Photographic Laboratory, and the Army were first prototypes of the jointly-developed in FY 1968 to the Army for testing. Pictorial Center. U.S.-Federal Republic of Germany Main Bat A new fully automatic mortar locating The new Tandem Van de Graaff accelerator tle Tank and Heavy Equipment Transporter. radar, the AN/TPQ-28, is nearing produc at the Nuclear Defense Laboratory, Edge The tank, capable of firing guided missiles tion. It is designed to provide the operator wood Arsenal, Md., is scheduled to begin as well as conventional ammunition, features with an accurate first-round location of hos operation in the fall of this year. This unique the latest state-of-the-art advances in fire tlle mortar sites. research tool will provide the Army with the control, suspension, armor protection and AMC achieved a significant improvement capability to obtain precise information from crew comfort. in multichannel radio relay communications basic research in nuclear effects for incor Additional uses were worked out during in FY 1968. The medium capacity (12/24 poration into Army materiel designs. the past year for the Mll3 armored personnel channels) subsystem, featuring pulse code A Smoke Generating Subsystem, Helicop carrier. Bulldozer kits were developed and modulation, was delivered to the first users ter: XM52 was developed and is currently tested and have been sent to Vietnam for in Vietnam. An improved version of the in limited production. Atomized fog oll is evaluation. Kits, to facilitate recovery of dis AN/PRC-25 manpack radio, the AN/PRC-77, projected into the exhaust of the UH-1D hell abled vehicles and repair in the field, are also was initially fielded in Southeast Asia during copter turbine engine to generate airborne under development. the year. smoke screens. A number of the subsystems First production models of the new First shipment of Army standard tactical have been put into use in Vietnam. M60A1E'2 co·mbat tank were accepted in single sideband communications equipment March and are now under test. This sophis to Military Assistance Program grant aid re ticated weapon system, an improved version cipients was competed in FY 1968. A total of the currently operational M-60, fires either of 128 systems for Argentina, Brazil, Co missiles or conventional ammunition. lombia, ~d Peru comprised this project. THE VULNERABLE RUSSIANS Fielding of the newest addition to the The United States, United Kingdom, Can Army's fleet of general purpose vehicles- ada, and Australia are participants in the the M715 series, 1%, ton, 4x4 trucks-began MALLARD project, established during the HON. EDWARD J. DERWINSKI in January of this year. This new vehicle has past year as a cooperative international pro OF ILLINOIS four-wheel drive, a top speed of 60 mph, and gram for development and production of a IN THE HOUSE OF REPRESENTATIVES a capacity to negotiate 60% grades. major tactical trunking and distribution Production of the M561 Gam.a. Goat 1%, communications system for field armies and Wednesday, July 31, 1968 ton cargo truck was ordered in June of this elements of other services. The MALLARD year, with the first vehicle expected off the system is intended to be fielded in the 1975- Mr. DERWINSKI. Mr. Speaker, just production line in August 1969. The six 77 time period. It will provide secure, digital, recently the American people and many wheeled, two-unit vehicle has demonstrruted automatically switched communications. of our allies celebrated the lOth ob a considerable improvement in off-road mo Announcement was made in May of the servance of Captive Nations Week. The bility. The two units are connected by an Army's latest night vision devices. Thousands successful observance was interesting articulated joint which permits them to of the devices have been supplied to field observed against a backdrop of circum- pitch and roll and st111 maintain ground con units, and many are in use now in South stances and events that would even con tact ·and traction with all six powered wheels. Vietnam. They include the Individual Weap The Mobile Floating Assault Bridge/Ferry ons Sight, the Crew-Served Weapons Sight, fuse many of our experts, not to speak developed by AMC's Mob111ty Equipment Re and the Night Observation Device, all of of the proverbial average man. search & Development Center has been de which ~mploy "image intensification" tech On the one hand, the White House livered to the Army. This versatile amphib nology. This new system amplifies the dim purposely played down the observance so ious vehicle, primarlly designed as a ferry glow of the moon, stars, or even faint sky as not to irritate the Russians, and dur for transporting essential elements across glow and intensifies it within the target area ing the week it revelled in the opening wa.ter ob&tacles. can link up with like vehi of the scope. A supplementary light source of the Moscow-New York flight run. On cles to form a heavy duty bridge for river is not required, and therefore, the user does crossings by combat units. not risk detection by an enemy using a near the other hand, rumblings of Czech, Redeye, the Army's smallest air defense infrared viewer. Slovak, and Ukrainian nationalism were guided misslle system, was deployed during In its third year, the AMC Zero Defects heard throughout Europe, while in the FY 1968. It has an infrared homing guid Program, established to motivate all person course of the Czech-Slovak crisis the ance system which tracks the heat exhaust nel to be more quality conscious, continued Russians tightened their imperialist of low-flying enemy aircraft and guides the to produce tangible results. AMC employees, screws on two Slavic captive nations. misslle to its target. The hand held missile as of late FY 1968, had submitted more than These events in themselves vested the and launcher combined weigh little more 4,200 Error Cause Removal (ECR) actions, lOth observance with pointed meaning. than 29 pounds. and management had approved and applied Successful development tests were con more than 3,000 of these suggestions. The clue to a perceptive understanding ducted with components of another light AMC won the Department of the Army of these and similar developments can weight weapon, the Dragon anti-tank mis FY 1967 Award of Honor for Safety in world be found in the current book, "The Vul slle system which weighs about 27 pounds. wide competition with 13 other major com nerable Russians." Authored by Dr. Lev Designed for high accuracy agains·t both mands. It was the second consecutive year E. Dobriansky, of Georgetown University, moving and stationary targets, it will be far and the third time in the last five years that this instructive work provides all the superior in range, accuracy, and lethality to AMC had won this top award. During F'Y essential outlines of Soviet Russian im the anti-tank weapon it wm replace, the 1967, rates of accidents, injuries and oost 90mm recoilless rifle. were improved 24% despite an approximate perio colonialism whioh we now see Production of new ground support equip 25% increase in personnel. spectacularly operating in Czechoslo ment for the Pershing 1-A missile system In the aircraft safety field, efforts by AMO vakia, as in Hungary 12 years ago. was contracted for during FY 1968. Pershing and industry to solve the post-crash fire prob The work is now available at the 1-A involves a shift from tracked to wheeled lem have resulted in design of a fuel tank of Georgetown University bookstore, White carriers for all components, including the superior strength to prevent rupture during Gravenor, Georgetown University, Wash erector-launcher. The change was prompted crashes in which the crew would survive. ington, D.C. The following review by by the Army's conrtinuing quest for faster Stronger tanks and other safety items re Bill Freehoff of WKPT in Kingsport, rate of fire, increased rel1ab111ty, less main cently were incorporated into a UH-1 hell tenance, and lower over-all costs. copter, which was flown and intentionally Term,. amply shows the nature and A new class of solid propellant additives crashed in a demonstration. Both engine and worth of the book: has been developed. The new class of addi transmission were torn from their mountings, THE VULNERABLE RUSSIANs-A REVIEW BY tives increases the burning rate of solid but no tanks were ruptured. BILL FREEHOFF rocket propellants to at least three times In open competition with films entered 50 years ago last Sunday, the people of the present rates and permits the develop by the nation's foremost industrial firms, Byelorussia established the Byelorussian ment of rocket motors with shorter burning AMC films won important awards from the National Republic as a free and independent times and with higher thrust. Industrial Management Society during FY nation. Prototypes of the Forward Area AI tering 1968. The freedom of that nation was, however, August 1, 1968 EXTENSIONS OF REMARKS 24863 short-lived. On December 10, 1918, the Red He says that communism is a means under russia, Georg1a, Ukraine, !del-Ural" and so Army invaded Byelorussia. Finally, in 1921, which the Russians spread their empire, just on. that nation was absorbed illlto the Soviet as pan-slavism and the Russian Orthodox Dobriansky thinks the Cold War must Union. Church were means for the same end under be won and can be won through effective The experience of Byelorussia--one of the the tsars. propaganda and psychological offenses. many captive nations conquered by Russian He reminds us that Russia is the key to For example, he suggests that since the might and deception-was an experience the Cold War problem, that if the Soviet Ukraine and Byelorussia are members of shared by the Ukraine and by other nations Union were to be destroyed, other commu the United Nations and are thus, technically, that were on the border of the Russian em nist areas might &OOn dissolve. sovereign nations, they should be recognized pire. He points out that when Hitler's army as such by the United States and that we Tonight'S book, written by the one man in invaded the Soviet Union in World War ll, should send ambassadors to Kiev and Minsk. the United States who knows more about the many of the subject people of the nations This would tend to drive a wedge between subject than any other, tells the story of how under Rusian Control wanted to rebel against these two captive nations and Imperial Com these nations were absorbed into the Russian Russiar--especially in the Ulqa.ine-but that munist Russia. Empire, how that faot should be mentioned Hitler f·ailed to take advantage of that situa The state department-which, Dobriansky constantly, and how the liberation of these tion. insists, does not at all understand the situa nations from th~ yoke of Russian imperial He points out that the United States tion, does not go along with the idea which il'im should be the object of U.S. foreign muffed the deal when the Freedom Fighters was actually proposed in 1953 by Congress policy. of Hungary made a break for independence man Smith of Wisconsin. Dr. Dobriansky is the author of the Cap and that many soldiers of the Red Army Dobriansky also suggests that the Voice tive Nations Resolution, passed by Congress did not like to fight the Hungarians. of America step up its broadcasts in the in July, 1959, and he 1s also the author of Although Dobriansky does not mention it language of the people of the captive na the Congressional resolution honoring the in this book, the fact 1s the soldiers of the tions and put less emphasis on Russian great Ukrainian poet, Taras Shevchenko. Red Army were not told they were going to language broadcasts. He states his thesis simply and often in his Budapest at first. But his main idea is the establishment of book, "The Vulnerable Russians", and that But Dobriansky does mention the fact that a Freedom Commission and a Freedom thesis is this: that the Soviet Union 1s not a the Russian General Staff was afraid the Academy and a Joint Congressional Freedom nation. It is, rather, an empire, an empire of Western Powers would not stand for Rus Committee. conquered nations, nations that fell victim sian aggression in Hungary. Again, the State Department turns thumbs to Russian aggression. Here, ironically, was a repeat of a similar down-not, insists Dobriansky, giving them Dr. Dobriansky points out that the Russian situation in the 1930's, when the German the benefit of the doubt, not because they Empire is an old one and that the Bolshe General Staff warned Hitler not to invade are subversive in the State Department, but viks-when they came to power after the Czechoslovakia for fear France and Britain simply because they are stupid. Russian royal family was murdered-merely would intervene. The Freedom Commission would be com continued the old Russian tsaril'it policy of In both cases, the Western powers stood posed of six members and a chairman ap colonialism. by, while a nation was raped! pointed by the President With the advice He says it is ironic for the United States Dobriansky points out that the captive and consent of the Senate. to spend so much time talking about the nations 1s the soft spot of the Russian body, The Commission would establish and su right of self determination of tiny little it is their Achilles heel and when the Captive pervise the Freedom Academy, which would areas in Africa and to ignore the nations Nations Resolution was passed, the Russian concentrate on Soviet Russian political war under the Russian empire. dictator had a fit. fare techniques and how best to counteract He points out that President Woodrow Wil The masters of the Soviet Empire do not them. son made a terrible blunder after World like for the truth to be told about the cap The students at the Freedom Academy War I when he did not insist on the right tive nations that make up the entity known would oversee the work of the Freedom of the nations now part of the Russian Em as the Soviet Union. Commission. pire, for self-determination. They try to give the impression that the Such a set-up is badly needed, says Do He points out further that Wilson's blun various so-called "republics" are part of the briansky, because the leaders of our gov der was compounded when President Frank Soviet Union because they want to be and ernment simply do not understand the Rus lin Roosevelt extended diplomatic recognition they point out that under the federal con sian communist imperial threat. to the Soviet Union and, at treaty confer stitution, these republics may part compe.ny We are not simply fighting "communism", ences during World War II, sealed the doom at any time. A realist knows they dare not, as so many people think; we are fighting of the captive nations under Russian dom of course. Russian imperialism. ination. On one hand, the masters of the Kremlin He says that the Russians want us to look But Dr. Dobriansky also points out that at the Cold War ill; terms of a struggle be neither Richard Nixon, nor John Kennedy, point up the ethnic and cultural traditions of these republics, on the other hand, they tween communism and capitalism. nor Dean Rusk fully understand the situa But it is more than that and Dobriansky tion with respect to the captive nations. are delighted that the leaders of the United States regard these people as "minorities" is quite right when he points out that the They all keep talking about the Russian people of the under-developed nations do not Communist Empire as if it were a nation within Russia, like the Irish in Boston or the Chinese in San Francisco. understand communism or capitalism but and they call all the people who are sub they do understand freedom and colonialism. ject to Russian domination "Russians". At times, when it suits the Russan prop aganda machine, these people of what were Moreover, communism as an economic That, he says, is like call1ng an Irishman system is simply socialism in its most ad or a Scotsman an Englishman. once nations, are regarded as minorities, also. He also points out that it is short-sighted, But the Russians know that the people of vanced form and how can a Welfare State, the Ukraine, for example, have clung to their semi-socialist nation really fight communism to say the least, to refer to the Ukraine as per se? if it were as much a part of the Soviet Union traditions and they were furious when the as Texas is of the United States. United States stole the thunder from the There is food for thought in this remarka The Ukraine was once a sovereign nation. Russian communist imperialists and erected ble book. It is a shame that "The Vulnerable It is an ancient country and its people have a statue to the great Ukranian poet, Shev Russians" had to be printed by some rela a language and a culture different from chenko, who was a freedom lover. tively obscure press. It should have the widest that of the Russians. The Russians have tried to make him a possible distribution and ought to be re Moreover, the Ukraine was conquered by hero of the Bolshevik Revolution in an ef quired reading for the policy makers in gov the Russians. fort to appease the Ukranians who know the ernment, for those who aspire to the presi Texas, it is true, was also a sovereign na difference. dency, and for professors of international tion. But the Republic of Texas voluntarily A recent issue of the Russian propaganda relations and for editors, and broadcasters. agreed to join the United States as a state. magazine that circulates in the United Moreover, the men who ran the Republic States, devotes that entire issue to Armenia, of Texas were Americans, spoke English and which is really a Russian colony but which had no real traditions separate and apart the Russians pretend 1s a nation. TWO NOTED HOOSIERS RECEIVE from the United States. Dobriansky says we should keep harping COVETED GOLD PLATE AWARD It is wrong to speak of all of the people on these national differences, that we should of the Soviet Union as "Russians" Dobriansky keep reminding the world that the Soviet explains, because Russia 1s only one of the 15 Union is not a nation in fact, but is an HON. BIRCH E. BAYH entities that make up the Union of Soviet empire made up of some 15 nations that OF INDIANA Socialist Republics. were conquered or subverted by Russian im Moreover, the Russians are a minority and, perialism, that each of these nations de IN THE SENATE OF THE UNITED STATES in many parts of the Soviet Union, are de served to be free, that if they all were free, Thursday, August 1, 1968 spised. there would be no Soviet Union at all, and Dobriansky points out that Karl Marx as a consequence, the rest of the Russian Mr. BAYH. Mr. President, it has just once referred to the empire of the Tsars as empire would collapse. come to my attention that two outstand a "prison house of nations", and he makes Certainly, if President DeGaulle of France ing citizens from Indiana have been hon the point that the term is even more appro can come out for a "Free Quebec", President ored by being selected as captains of priate for the present Russian Empire. Johnson can come out for a "Free Byelo- achievement for 1968 by the American 24864 EXTENSIONS OF REMARKS August 1, 1968 Academy of Achievement. Mr. Eugene odist minister, the Reverend Irvin B. Pul Leahy's nationally syndicated sports column C. Pulliam, distinguished journalist and liam, and Martha Ellen Collins Pulliam. He and organized the material and manuscripts publisher, and Mr. Frank E. Sullivan, launched his business career at six--deliver for two Leahy football books. ing the lola Register. Since joining American United Life, Mr. immediate past president of the Million Upon graduation from Baker Academy at Sullivan has propelled himself and his Dollar Round Table and leader in the Baldwin, Kansas, he enrolled in DePauw agency to an impressive series of achieve life insurance profession, were both University at Greencastle, Indiana. The ne ments. At one time or other, he himself has named to receive the Golden Plate cessity to earn his way through school led led the entire 89-office nationwide A.U.L. Award of this highly respected organi him to establish The DePauw Daily. While complex in all aspects of individual life in zation at ilts annual banquet on June 15. at DePauw-he and nine other students surance sales. And his South Bend firm, Each year since 1961 approximately founded Sigma Delta Chi, now an inter though small in numbers, Is consistently national journalist fraternity. among the top five of all company agencies. 50 outstanding leaders, c,h.osen as "rep Following DePauw, Mr. Pulliam became a Besides his business and MDRT activities, resentatives of the many who excel in reporter on the Kansas City Star. At 23 he Mr. Sullivan is a strong community leader in the great walks of life," have been sim took over publication of the Atchison, Kan South Bend. He is Chairman of the Execu ilarly designated by the American sas, Champion-the youngest publisher of tive Committee of The Advisory Council of Academy of Achievement. Among those the day in the United States. Since he has University of Notre Dame's College of Busi chosen this year were such well known owned and operated 47 newspapers in eight ness Administration; Honorary Chairman of figures as Dr. Joyce Brothers, psychol states. Today his newspapers are The Ari the Board of Directors of the United Com zona Republic and The Phoenix Gazette, The munity Services of South Bend; has been ogist, Dr. Denton Cooley, pioneer heart Indianapolis, Star and The Indianapolis chairman of every division and General surgeon, Thomas G. Cocoran, adviser to News, The Muncie (Ind.) Star and The Mun Chairman of the St. Joseph County (Indi Presidents, the Honorable DANIEL K. cie Press, and The Vincennes (Ind.) Sun ana) United Fund, and has had active INOUYE, Senator from Hawaii, Capt. Commercial. leadership in fund drives which have raised James A. Lovell, astronaut, Stan Musial, Mr. Pulliam considers himself first of all more than $12 million. He was South Bend's baseball executive and former star play not an owner, not a publisher, not an em "Young Man of the Year" in 1958; Notre er, Brig. Gen. Robin Olds, Commandant ployer, but a newspaperman-a reporter at Dame Alumni Club "Man of the Year" in heart. He and his wife, Nina, have traveled 1959; and was a 1962 recipient of the Broth of Cadets at the U.S. Air Force Academy throughout the world as a reporting team. erhood Award of the National Conference of and outstanding combat pilot, Eugene He still can, on occasion, write an editorial, Christians and Jews. Patterson, editor, and Lawrence E. Spi and his unerring sense of news sets the Mr. Sullivan is author of a book, "Selling vak, television producer and panelist on pace and commands the admiration of his Life Insurance for Deferred Compensation," public affairs. staffers. However, he realizes that a news considered the authoritative work in that The two Hoosiers who were honored paper to be a good newspaper must be finan special underwriting field. are both eminent and highly respected cially successful; it must constantly improve He donates much time to helping strug personages in my State. Mr. Pulliam, the its service to its readers; it must provide gling young agents get ~stablished, and many the best possible condition for the best pos now-successful agents credit his help as th~ owner and publisher of five newspapers sible staff, and It must back its community's turning point in their careers. in Indiana and two in Arizona, is the first progressive programs with money as well as vice president of the Associated Press and editorial support. has served with distinction on the boards During past years the Central Newspapers of several educational institutions and Foundation, established by Mr. Pulliam, has L. B. J. ORDERS AID FOR NEGRO other organizations. He established the sent hundreds of young men and women to BUSINESSES Central Newpapers Foundation, which colleges of their choice and has brought for many years has assisted deserving young foreign reporters to this country to students to pursue a college education. study, to work and to travel. HON. JAMES H. SCHEUER Mr. Pulliam is a member of the board of OJ' NEW YORK During his own student days at DePauw Directors and First Vice President of the University, in Greencastle, Ind., he was Associated Press. He is a trustee of the Wil IN THE HOUSE OF REPRESENTATIVES one of the cofounders of Sigma Delta liam Allen White Foundation at the Uni Wednesday, July 31, 1968 Chi, the well-known journalistic society. versity of Kansas; he is on the advisory com Because of his lifetime dedication to the mittee for the Professional Journalism Mr. SCHEUER. Mr. Speaker, we are preservation of a free press, Mr. Pulliam Fellowship Program at Stanford University all fully aware of the economic prob has received the John Peter Zenger and the advisory Board of the Nieman Foun lems that exist among minority groups, Award "for distinguished service in sup dation at Harvard, as well as being a member particularly in our inner cities. of the Board of Directors of the Union Yesterday, I had the opportunity to port of the freedom of the people's right Printers Home Association at Colorado to know." Springs. study an approach to these problems The other Indiana leader selected for Of the many awards and honors he has that hit me like a breath of fresh air. the Golden Plate Award in 1968 was received, probably the most highly treasured I refer, Mr. Speaker, to an article by the Frank E. Sullivan, insurance executive of are two voted him by his fellow newspaper Honorable Howard J. Samuels, Admin South Bend. A Navy veteran and gradu men spanning the full range of newspaper istrator-designate of the Small Business ate of Notre Dame University, he was activity. Administration, in the Washington Post. elected when only 42 years of age to be The masthead of each of the Pulliam I commend this article to my colleagues newspapers carries the slogan, "Where the as well worth reading, not only because president of the Million Dollar Round Spirit of the Lord Is, There is Liberty." Table, an international organization of it clearly enunciates an imaginative top-ranking life insurance agents. In ad course of action which promises real dition Mr. Sullivan has been a very FRANK E. SULLIVAN progress, but also because it clearly shows active participant in numerous commu Frank E. Sull1van, C.L.U., general agent of the drive and vigor that Howard Samuels nity organizations and charitable pro American United Life Insurance Company, is will bring to SBA to achieve the objec one of the best known and most admired life tives assigned to him by President John grams, has authored a book on selling life Insurance agents in the United States. insurance, and has gained several public A forceful advocate and living example of son at the time of his appointment. honors for his humanitarian efforts and continuing advanced education tor life in I know Howard Samuels, and I am his contributions to mankind. surance agents, and of personal growth, dis delighted that he is to have the oppor Mr. President, the recognition which cipline, and responsib111ty, he has had a re tunity to dedicate his considerable talent these two Indiana leaders have received is markable influence in the improvement of and know-how to this pressing national well deserved. I extend my personal con life insurance men and life insurance serv problem. ice throughout America. As a member of the House Education gratulations to them, and ask unanimous At 42, Mr. Sullivan was the youngest man consent that a brief summary of their ever elected President of the life insurance and Labor Committee, I know of the accomplishments, which appeared 1n the industry's distinguished, international or desperate need to help our disadvan annual publication of the American ganization Of leading life insurance sales taged help themselves, and share in this Academy of Achievement, be printed at men-The Million Dollar Round Table. unprecedented land of plenty. the conclusion of my remarks. A native of Lowell, Mass., Mr. Sullivan Mr. Speaker, I include the article from There being no objection, the summary moved to South Bend to attend Notre Dame the Washington Post at this point in the University. After serving in the Navy during RECORD: was ordered to be printed in the RECORD, World War II, he graduated from Notre as follows: Dame, where he was administrative assist L. B. J. ORDERS Am FOR NEGRO BUSINESSES EUGENE C. PULLIAM ant to famed Notre Dame football coach (By Howard J. Samuels) Eugene Collins Pulliam was born In Grant Frank Leahy in his undergraduate days and The demand of the black community for a County, Kansas, son of a missionary Meth- for three years thereafter. He ghost-~ote share In Amer!can business-not only as em- August 1, 1968 EXTENSIONS OF REMARKS 2486'5 ployes but as owners and managers--has preneurs we want to help establish. They Thomas Reddin, 52, who unders•tands that been heard clearly by polltical leaders this must also have training in management to the cop today must not only be a well-trained year. The leading candidates of both parties succeed. soldier but a "street-corner sociologist.'' Says are calling for new policies to promote black On both these scores there is a limit to Reddin: "This is the year when the public will suddenly realize that the policeman has ownership. what government can or should do. The pri In the inner city itself "a piece of the ac vate business community's participation is more to do with the state of our nation than tion" has become a symbol more potent than essential to provide not only capital-great any other roan on the streets today." just an economic issue. "Jobs" still means ly leveraged with government guarantees- Most Americans heard of Reddin only after bwt management assistance. the assassination of Robert F. Kennedy, working for whitey; "own your own" means when, for a period of 42 nearly sleepless a lot more. Much more can and must be done by the A Negro business leader put the problem reta.il and service businesses to offer fran hours, he directed the investigation of the bluntly. "This is a capitalistic system," he chise to minority entrepreneurs-auto murder and also expertly fielded newsmen's dealerships, service stations, supermarkets. questions on nationwide TV. Most Cali said, "but we are the only people in it with fornians knew of him long before, almost out any capital." There is no better way for people with The Irish, the Jews, the Italians have al limited experience to develop managerial from the very day in February 1967 that he ways owned the businesses in their neighbor competence than by operating first under moved into the chief's office in L.A.'s new hoods, and the grocer's son eventually made the umbrella of a successful corporation. eight-story headquarters building, known to his way to college and into the "system". The Trade associations should set up special the force as the "Glass House." blacks, for many reasons, have not been able programs to sponsor and train minorities The late William Parker, Reddin's pred ecessor, was the epitome of the police to. to get into their fields, especially retail and The facts are dramatic: service areas where entry is the easiest. professional, a crusty authoritarian who had Minorities are 15 per cent of the population The minority community must get in little truck with sociological theories. Taking but own only one percent of the businesses. volved too, through participation in local over a scandal-tainted force in 1950, Parker One out of ten white faro111es owns its own development corporations and by helping made it as honest as any in the nation, business, but only one out of 40 black find potential business owners and educate boosting standards, competence and morale, families. them to the opportunities. The government and giving the L.A. police a paramilitary Even in the ghettos, some 80 to 85 per role should be that of catalyst, organizer, esprit. He did not, however, understand the cent of the businesses are owned by whites. planner, and guarantor of the financing. new problems caused by the postwar infiux Certainly less than 10 per cent of the retail Our most important role now is to galvanize of Mexican-Americans and Negroes. volume moves through black stores in the private sector involvement. Yet, with all the vaunted efficiency of inner city. The President has given me the manda.te L.A.P.D., Watts would never have been sub In Washington, where more than half the as head of the SBA to move forcefully in dued without the' aid of 13,900 National population is Negro, blacks own 2000 busi these new directions, and quickly. The lead Guardsmen. Like most other cities at the nesses while whites own 28,000. One-fourth ers of the banking and business communi time, L.A. had no contingency plan for a of the businesses the Negroes do own are ties are being consulted and they under major uprising. "We were so anxious not to barber shops and beauty parlors. They own stand this need. They see minority owner cause a riot that we backed off at first and no manufacturing enterprises. ship as importa.Ilit to economic growth and let a riot develop," admits Reddin, who was Other ethnic groups came to this country a stable society. then a deputy chief: "Using accepted practice from Europe with some merchant experience In their active participation lies the sin on the second day, we isolated the area, rea to exploit. The road up from slavery has been gle best hope for giving the nation's mi soning that the rioters would riot themselves tougher. Negroes have simply not been a part norities a stake in the free enterprise system. out and go home. So what happened? Other of the economic system, except as workers. riots broke out in other areas." In the end, Few have acquired management. experience the insurrection encompassed a region because only recently have white businesses roughly the size of San Francisco. There begun to move them into top jobs. was little liaison with other agencies, partic The brightest and most ambitious blacks POLICE: THE THIN BLUE LINE ularly the National Guard, and commanders have gone into law, medicine, teaching or often could not communicate with patrol polltics where the barriers have not been so cars because their radios operated on differ formidable. In addition the Negroes have HON. JAMES C. CORMAN ent frequencies. little capital. The black community, at the OF CALIFORNIA Like any other lost battle, Watts yielded bottom of the economic heap, has been un its lessons, and Los Angeles' riot plan is now able to develop the savings essential to IN THE HOUSE OF REPRESENTATIVES geared for all contingencies. Police response capital formation. Wednesday, July 31, 1968 is carefully adjusted . . . to the size of the With little capital of their own they have a disturbance--enough force to smother trou hard time walking into a bank downtown and Mr. CORMAN. Mr. Speaker, law en ble quickly, but not enough to provoke coming out with a business loan. And there forcement and the preservation of law greater resentment. In each division, half are astonishingly few Negro banks to go to- and order are issues that have been of the patrol cars are always tagged for re only one in the whole of New York City, 17 great concern to this Congress. As a sponse to special riot alert; if the cars of in the entire United States. The assets of all member of the President's Commission one division should prove inadequate to halt the Negro banks in the country add up to on Civil Disorders, I have come to ap a. disturbance, half the cars in the city can be one half of one per cent of the assets of the preciate more than ever before the vast on the move within minutes. If half the de Bank of America alone. number of problems facing local police partment still cannot keep ctontrol, nearly the This Administration has made a start, entire uniformed force of 4,000 can be gaining some experience in how to help forces. In the Los Angeles area, we are mob11ized for duty. Los Angeles' basic formula minorities and making some mistakes along fortunate to have an excellent force with of speed and superior force is being copied the way. But it now has the tools and is superb leadership. Its chief, Tom Reddin, by 100 other cities. ready to move in a much bigger way. was recognized in the July 19 issue of Every front-line policeman in Los Angeles The critical problem of insurance for busi Time magazine as one of the Nation's has been through a three-day riot-control nesses in high risk areas will soon be re outstanding police chiefs, and I would school, and all have been told exactly what solved by the re-insurance blll Congress is like to bring to the attention of my col to do in event of riot. Officers would no expected to pass. The Small Business Ad leagues some of the remarks made in the longer work as individuals, but would be ministration has the authority to guaran assigned to highly mobile, rapidly moving tee hundreds of milltons of dollars worth of article which point out justification for squads. "One man, operating as one man," loans from the private banks. SBA ca.n do the great respect he has gained. says Reddin, "can control only one man. for minority business development what The soldier of the cities is the cop, his One roan as a part of a squad of ten can federal mortgage guarantees have done for front line the American ghetto . . . Pollee control several hundred people." When housing. The agency can offer 100 per cent forces around the country are stepping up should a policeman shoot to kill? Reddin is guarantee on special "e~nomic opportu recruiting. Armories are stocking weaponry notably evasive, refusing even to outline a nity" loans for the poor-looking more at that ranges from small, knockout-spr~y situation when he himself would fire his their personal potential as entrepreneurs atomizers to tanks. Training is being re revolver. Ultimately in Los Angeles, the de than at their capital. Some $82 million has orientated and intensified. And slowly cision is left up to the individual cop. Two been loaned so far. sometimes too slowly-the best forces are hundred marksmen have been assigned to As a matter of principle, I believe a man beginning to re-examine the concepts that a squad named S.W.A.T. (Special Weapons taking a Government loan should have a have guided policemen for generations, try and Tactics) , designed to pick off snipers little of his own money in the venture. Try ing to look upon the citizens of the slums and to eliminate, presumably, the need for ing to put a man with nothing into busi not as foes but as fellow men and a com indiscriminate police gunfire, which took in ness would be both bad business and a dis manding social challenge. nocent victims in Newark and Detroit last service to him. The philosophy of the free Nowhere is more being done in these re year. On the target range they can hit the enterprise system requires that an entre spects than in Los Angeles, scene of the first head of a man's silhouette at 300 yards. A preneur take some personal risk. cataclysin.lc riots of the '60s. No police chief $25,000 trailer has been fitted out as a mobile But acquiring some oapltal is only the is acting more vigorously or imaginatively to command post, with an armored underside start for the new class of minority entre- prevent new outbreaks than Los Angeles' to fend off Molotov cocktails, and a smaller 24866 EXTENSIONS OF REMARKS August 1, 1968 van is available for secondary commanders. that there are at least two sides to the story. becoming involved. That course of con Fibre shields, straight out of Ivanhoe, and "It's very loose-knit," admits Reddin, "but it duct by no means reflects the universal bulletproof vests have been bought for men gets the word out. And the people involved attitude of the American people. in danger areas. The force this summer will aren't known as finks." have nearly 700 walkie-talkies (v. 58 in 1965) So that residents can know who the man Last week, Police Commissioner How to link commanders with front-line cops. behind the badge is, Reddin also gave each ard R. Leary, of the city of New York, Potential riots are far from the only prob cop business cards and name tags-- an in presented civilian commendation bars lem. Los Angeles recorded an 8.1% crime rise nocuous but nonetheless controversial de and certificates of commendation to 17 in 1967 over 1966. Because of its sprawling parture in a once notoriously highhanded civilians who performed outstanding acts size, which isolates branch offices and gives force. Another innovation is actually an of bravery by coming to the aid of police any getaway car 1,000 escape routes, it is cient. Reddin has returned to the streets a in the capture of dangerous criminals No. 1 in bank robberies. Because of its prox man who disappeared from Los Angeles when imity to Mexico, it is the marijuana capital patrol cars came in; the cop on the beat. It and in the rescue of people in need of of the world. The L.A.P.D. seized 2¥2 tons of is remarkable in a city where only the poor assistance. I am happy to join with the grass last year, enough to orbit a good-size and the eccentric walk, and so far the ex police commissioner and with the people army. Because of its balmy climate, it has, periment is on a tiny scale. About 30 are now of our city in a salute to these people notes the chief, a "twelve-month crime pounding the pavements. whose courage demonstrates that they culture." "This is beautiful community relations," do care. To cope with all this, Los Angeles has the argues the chief. "The policeman gets to Five of those commended are residents smallest force in the country, relative to know people. They identify with him, and of the Bronx, four from Manhattan, population (an estimated 2,840,632) and area the chances of one of them throwing a rock (463.6 sq. mi.). The city employs only 1.9 cops at him or at a police car are less. It's the three from Brooklyn, two from Queens, per 1,000 residents v. 2.8 in Chicago, 3.2 in most expensive way of deploying pollcemen, and one each from Staten Island, Pearl New York. Yet man for man, in part because but in the long run it could very well turn River, and New Jersey. They represent the force is so highly motorized, it is prob out to be the least expensive." various occupations, including an attor ably one of the most efficient. The L.A.P.D. The Reddin blueprint pays attention to ney, a mail carrier, a trucker, a student, has a higher percentage of civilians than any the young-rather self-consciously. Fourteen a security guard, a school crossing guard, other big-city force (three civilians for every officers, each known as "Policeman Bill," are a police cadet, a teacher, and a public ten in uniform) ; they handle many tasks, assigned to the city schools' first, second and relations representative. such as clerical work and traffic direction, third grades, where they tell children about that elsewhere sworn policemen usually per the policeman's job. It all sounds a little BARRY COHEN AND ALLAN KORNBLAU form, thus freeing all but a few regulars for !Cloying. Even so, before one "Policeman On December 11, 1966, at about 3 active law-enforcement duty. An elite team Blll's" visit, a survey showed, ghetto chll p.m., Mr. Barry Cohen, a student, and of 225, known as the "Top Group," has been dren portrayed cops as monsters with whips and flashing silver badges. After he left, they Mr. Allan Komblau, a teacher, heard a organized for special assignments, such as woman scream for help. They rushed to nabbing organized car-theft rings or stick-up scrawled kindly father figures. To woo teen artists. A "community radio watch," com agers, almost always the troublemakers in the assistance of the victim and were in posed of cabbies and truck drivers who have ghetto disturbances, the L.A.P .D. has experi formed that a man attempted to assault two-way radios, is being formed to alert po mentally hired twelve youths for help on and rape her. They ran in the direction lice to violations. Eventually, Reddin guesses, such minor but ticklish assignments as me the suspect took, apprehended him at the radio watchers could add 60,000 pairs of diating famlly disputes. The program so far the East !67th IRT Subway station and eyes without any cost to the police-surve11- has shown encouraging signs of success. detained him until the police arrived. lance network. Another laborsaving device is Yet in the end, it is the individual cop The courageous action of Mr. Cohen and a new $450,000 computer, financed by the who is the overseer of peaceful normalcy. Often under the most difficult circumstances, Mr. Komblau in coming to the aid of a Federal Government, that w111 not only cut citizen is highly commended. down on paperwork but also, by constantly he is the thin blue line between law and dis pinpointing changing crime target areas, will order, civil1zation and anarchy. He is the SEYMOUR FERSKO help commanders assign patrols when and man whom Tom Reddin and others like him On July 19, 1967, at about 6:45 a.m., where they are needed. are trying to lead-and change. Few experts promise quick results. As Tom Reddin puts Mr. Seymour Fersko, a trucker, assisted Yet the biggest problem of the L.A., or any the police in rescuing a man who threat other police forcet is not tactical. "Above it: "We're reversing a whole lifetime of a all," says Reddin, "we found as a result of different kind of policework." Understand ened to jump from the George Washing Watts that we had lost touch with the public ably, the policeman-even the "street-corner ton Bridge. The man stood on the outer that we were attempting to serve." sociologist"-is not so much concerned with most .railing on the south side of the Keeping in touch has been Reddin's main social trends as with the job an older society bridge, and refused police efforts to re concern. California Criminologist A. C. Ger gave him to do. move him to safety. Cooperating with mann suggests that a good police chief must Mr. Speaker, to conclude, I would just the police, Mr. Fersko drove his truck to be as willing to talk to black nationalists as like to reiterate a point brought out in ward the man with the tailgate of his he is to the Optimists' Club. Reddin may not the report of the Kerner Commission: truck lowered to the height of the guard exactly rap with the Black Panthers, but he rail while two officers were concealed in tries. Alone, the policeman in the ghetto cannot A gregarious ... man, he will talk with solve these problems. His role is already one the rear of the vehicle. The officers were almost everyone. During his first year in of of the most dlfficult in our society. He must thereby able to leap from the tailgate fice, his audiences numbered more than deal daily with a wide range of problems and and rescue the attempted suicide. Mr. 70,000; he st111 spends four to five hours a day people that test his patience, ingenuity, Fersko's skillful operation of his vehicle, in some form of community relations, aver character, and courage in ways that few of his exact timing and judgment, and his ages at least five speeches a week. . . . The us are ever tested. Without positive leader cooperation with the police is highly L.A.P.D. has not been excluded from Reddin's ship, goals, operational guidance and public commended. conviviality. Not only does he talk frequently support, the individual policeman can only feel victimized. . . . GEORGE STEWART with all levels, but every two weeks he sends On July 24, 1967, at about 10:20 p.m., the troops a little newsletter dubbed "The Los Angeles policemen have the leader T.R. Times." One of its maxims: ''Don't blow Mr. George Stewart, a security officer, your cool." · ship. I hope the Congress and the peo heard screams for help from the victim At Reddin's direction, community-rela ple of the United States will provide the of an assault anC:. robbery in front of 105 tions programs have been greatly expanded, necessary support. Ashland Place, Brooklyn. Mr. Stewart re with a deputy chief and a staff of 100. A sponded, chased the perpetrators, and community-relations officer, often a Negro, apprehended one of them a half block and a youth-service officer have been as away after a struggle. Mr. Stewart's signed to each ghetto station as emissaries SEVENTEEN WHO CARED alert, inte111gent, and courageous action to the neighborhood. Each station, in addi tion, has established a citizen's council that is highly commended. brings together 20 to 50 residents a month HON. BERTRAM L. PODELL VICTOR MALDONADO to discuss local problems with the police. OF NEW YORK On August 25, 1967, at about 10:40 To damp down rumors that often lead to IN THE HOUSE OF REPRESENTATIVES p.m., at East !39th Street and Willis Ave riots . . . Los Angeles like other cities, has nue, Bronx, Mr. Maldonado apprehended set up rumor-control centers. If an inflam Wednesday, July 31, 1968 matory incident occurs, police immediately a man who had committed a homicide tell their side of the story to the local rumor Mr. PODELL. Mr. Speaker, all of us with a revolver at a bar and grill. Mr. control officer. He calls four friends and each are fam.iUar with stories of witnesses to Maldonado followed the perpetrator and of them calls four more; the chain continues the commission of a crime who ·fail to ordered him to stop. The man turned until a large part of the community knows come to the aid of the victim, for fear of and pointed the gun at Mr. Maldonado, August 1, 1968 EXTENSIONS OF REMARKS 24867 who disarmed him after a violent strug imer Street, Brooklyn. Mr. Lee gave began an investigation of David G. gle. The courageous action of Mr. Mal chase, caught the youngster, and sub Baird's operations, and the Internal donado, who suffered personal injury dued him after a struggle. Mr. Lee's alert, Revenue Service levied taxes on the three while subduing a felon, is highly com intelligent, and courageous action is Baird Foundations totaling $6.2 million. mended. highly commended. Recently, almost 5 years after the date of ELOY R. BARROS ARTHUR HENRIKSEN our report, the Securities and Exchange On October 5, 1967, at about 2:2•5 p.m., Commission issued its opinion in this On May 28, 1967, at about 1:30 a.m., case. Among other things, Mr. Baird is Mr. Eloy Barros, a security supervisor, Mr. Henriksen, an attorney, came to the observed two men running from a liquor barred from engaging in the securities assistance of one of his neighbors who business. The text of the Commission's store, chased by the owner. Mr. Barros was being assaulted by three men. Mr. followed them in his 0ar and appre findings and a Washington Star story of Henriksen, without regard to his per July 15, 1968, follow: hended them at West 135th Street and sonal safety, rendered vital aid when he, Eighth Avenue. One of the perpetrators [In the United States of America before the with the victim of the assault, fought Securities and Exchange Commission, July had on his person an imitation gun and subdued the assailants until the which had been used to hold up the 5, 1968, Administrative Proceeding File No. police arrived. Mr. Henriksen's action 3-462] liquor store. Mr. Barros' courageous ac is highly commended. tion is highly commended. IN THE MATTER OF DAVID G. BAIRD, BAIRD & VIRGINIA MULCAHY, ANTON PASTIER, JOSEPH Co., 67 BROAD STREET, NEW YORK, N.Y. JAMES FLEMING AND EDWARD F. M'ELLIGOTT FAZIO, AND MICHAEL BUMBERA (8-1456)-8ECURITIES EXCHANGE ACT OF On October 20, 1967, at about 5:30 On March 1, 1968, at about 6: 15 p.m., 1934, SECTIONS 15(B), 15A AND 19(A) (3) p.m., Mr. Fleming and Mr. McElligott, Miss Virginia Mulcahy observed her girl FINDINGS, OPINION AND ORDER DISCONTINU security officers, observed a man fleeing friend, who had entered a phone booth ING PROCEEDINGS from a burglary at the Park Sheraton at Rector and Washington Streets, be (Securities Exchange Act Release No. 8350) Hotel. They chased the man, and after ing assaulted by a man armed with an BROKER-DEALER PROCEEDINGS an exchange of gunfire and a violent ice pick. Miss Mulcahy tried t·o prevent Engaging in Broker-Dealer Business With- struggle, disarmed him of a loaded .25- the attack, whereupon the man turned out Registration caliber automatic pistol. For their coura on her, knocked her to the ground, and Improper extension of Credit geous action at great personal risk, Mr. stabbed her. Mr. Anton Pastier and Mr. Failure to File Ownership Reports Fleming and Mr. McElligott are highly Michael Bumbera came to her assist Where partner of registered broker-dealer commended. ance, struggled with the armed assailant, caused charitable foundations controlled by KENNETH SCHAFFER and both sustained stab wounds in at him, which were not registered as broker tempting to disarm him. The man then dealers, to conduct broker-dealer business by On October 17, 1967, at about 2:45 engaging in large-scale securities activities, p.m., Mr. Schaffer, a public relations fled, pursued by Mr. Pastier and Mr. including purchases and sales for accounts representative, assisted the police in the Bumbera who were seriously wounded. of others as well as own accounts, transac arrest of three men charged with homi Mr. Fazio, attracted by the cries and tions with- persons not broker-dealers, and cide and robbery at 41 Convent Avenue, shouts, joined in the chase, apprehended extension of loans to purchase securities; to Manhattan. Mr. Schaffer followed the and disarmed the attacker, and held him extend credit in amounts and on collateral perpetrators on his motor scooter for until the arrival of police. Miss Mul prohibited by applicable regulations; and to several blocks, kept them under surveil cahy, Mr. Pastier, and Mr. Bumbera re fair to file required ownership reports, held, partner willfully violated and aided and lance until he notified a police officer who quired medical treatment for their abetted violations of Securities Exchange Act took them into custody. Mr. Schaffer's wounds. They and Mr. Fazio are highly and Regulation T, but under all the circum courageous action is highly commended. commended for their courageous action. stances, including inactive status of founda MARGARET T. ROGERS tions and partner's disassociation from reg istrant and his representation that he will On November 16, 1967, at about 8 not engage in securities business, appropriate a.m., Mrs. Rogers, a school crossing PRODUCTIVE .INVESTIGATIONS in public interest to accept his offer of set guard at East Tremont Avenue and tlement providing for issuance of opinion Bruckner Boulevard, did observe two containing findings respecting violations. young girls about 15 years of age being HON. WRIGHT PATMAN Appearances: forced into an automobile. Mrs. Rogers OF TEXAS Stanley SpCNkin and Irwin M. BCNowski, for recorded the lice:1se plate number of the IN THE HOUSE OF REPRESENTATIVES the Division of Trading and Markets of the auto and description of the persons in Commission. volved, and notified the police. Approxi Wednesday, July 31, 1968 Richard H. Paul and Sidney Rosdeitcher, Mr. PATMAN. Mr. Speaker, one of the of Paul, Weiss, Rifkind, Wharton & Garri mately 45 minutes later, one of the vic son, for David G. Baird and Baird & Co. tims was found murdered at 1470 Outlook investigations conducted by the Sub These were private proceedings which Avenue, Bronx. The information fur committee on Foundations, House Small among other things raised issues under nished by Mrs. Rogers led to the arrest Business Committee, has covered the Sections 15(b), 15A and 19(a) (3) of the Se -of the perpetrators. Mrs. Rogers' intelli three Baird Foundations of New York curities Exchange Act of 1934 ("Exchange gent assistance to the police is highly City, which were founded and operated Act") with respect to David G. Baird, a commended. by Wall Street financier David B. Baird. former partner of Baird & Co. ("registrant"), a registered broker-dealer.1 The order for JOSEPH KENNEDY The subcommittee published a study of the Baird Foundations on October 16, proceedings included allegations that be On January 16, 1968, at about 2 tween June 1950 and October 1963 Baird 1963, and they were also involved in our caused three foundations controlled by him p.m., Mr. Kennedy, a police cadet, as hearings of 1964. sisted in the arrest of a man who to engage in a broker-dealer business with We found that the Baird Foundations out being registered with this Commission snatched a handbag from a woman at were exploiting their tax exempt status as broker-dealers and in connection there 16 West 130th Street, Manhattan. Mr. and operating as tax-free commercial with to extend credit in contravention of Kennedy heard the victim's screams and enterprises. Those business transactions applicable requirements. observed three fleeing suspects. Without include: Baird submitted an offer of settlement in hesitation, he pursued one of them. After which he waives hearings and, solely for pur Operations as securities dealers; poses of these proceedings and without ad a short chase and a brief struggle, he Operations as business brokers, in mitting any violations of law or any findings apprehended the suspect. Mr. Kennedy's cluding sales and leases of plants and entered under the terms of the offer, con alert and courageous act is highly com equipment; sents to our making certain findings and mended. Operations as finders of credit; conclusions, including findings that he will Wn.LIE LEE fully violated and willfully aided and abet Banking activities, including sub ted violations of the Exchange Act as On February 16, 1968, ·at about 11 stantialloans to affiliated companies and Lee, a.m., Mr. a mail carrier for the U.S. business associates; and 1 Also named as a respondent was William post office, observed a youth carrying a Trading in mortgages. D. Brame, a partner of registrant, who died woman's pocketbook, being chased by a Following our October 16, 1963, report, subsequently. The proceedings wlll be dis woman on Nostrand Avenue and Herk- the Securities and Exchange Commission continued as to him. 24868 EXTENSIONS OF REMARKS August 1, 1968 charged in specified allegations of the order falling within the regulatory framework of 884,929, compared with a total of other in for proceedings. Baird resigned as a general the Exchange Act with respect to broker come and donations received of $15,168,855. partner of registrant in June 1967 and as a dealers, in the present case the scope and The latter figure included $4,963,149 in in limited partner in December 1967 and repre magnitude of the foundations' securities ac terest income, which was derived mostly from sents that he will not engage in the business tivities carired out under Baird's direction loans made in connection with the purchase affairs or activities of registrant except as went far beyond such conduct. Under the and sale of securities, and dividends of may be necessary for the transfer of control circumstances, it is clear that the founda $3,525,207. of registrant to its partners who are contin tions were "engaged in the business" of buy In connection with the activities described uing its business and for the liquidation of ing and selling securities for the accounts of above, the foundations engaged in related his interest and that of a deceased partner.~ others and for their own accounts, and were activities typical of a broker-dealer business. He further represents that he is not and will therefore brokers and dealers within the They collected and disbursed dividends for not be engaged in the securities business in meaning of the Exchange Act.' As such, they individuals, received and pledged customers' any capacity with any broker-dealer or in were prohtbited by Section 15(a) of the Ex securities as collateral on loans, pledged vestment adviser. He agrees that if it should change Act from using the mails or interstate their own securities for loans and directed at any time be found after notice and op facUlties to effect securities transactions the delivery and transfer of securities for portunity for hearing that he has breached otherwise than on a national securities ex individuals. any representation in or term or condition change without being registered with us. In light of the foregoing, we conclude of the offer of settlement or he fails after As set forth in the offer of settlement, in that Baird w111fully violated and willfully notice to appear at a hearing on the issue the 1950-1963 period the foundations ef aided and abetted violations by the founda of whether there has been such breach, we fected transactions in more than 630 differ tions of Section 15 (a) of the Exchange Act may without further proceedings impose ent issues of securities, including transac and Sections 7(c) (1) and 7(c) (2) of that such sanctions as we deem appropriate for tions executed on a principal or agency basis Act and Sections 3(b) (1) and 7(a) of Regu the violations as charged in the order for with 340 persons who were not broker lation T. proceedings. The offer provides that, in view dealers. The total dollar volume of transac Baird further willfully aided and abetted of those representations and agreements, no tions with one person alone exceeded $25 violations by the Lansing Foundation, Inc. sanction is to be imposed on the respondents m1llion and the foundations a~ted as agents and the Winfield Baird Foundation of Sec other than issuance of these findings and for such person in 40 situations, some of tion 16(a) of the Exchange Act and Rule opinion. them entailing a series of individual trans 16ar-1 thereunder in that he caused those After due consideration of the offer of actions, involving a total consideration of foundations, following their acquisitions ln settlement, the recommendation of our st8.1r more than $12 million. In addition, the 1953 and 1960 of more than 10 percent of a and the reasons hereinafter stated, we have foundations engaged in certain transactions class of equity security registered on a na determined to accept such offer and make in which large blocks of stock were purchased tional securities exchange, to fail to file with the findings set forth below. from one person or a group of persons and us required reports with respect to such ac Baird organized the three foundations, the thereafter redistributed in the public market quisitions and subsequent changes in their Winfield Baird Foundation, the David, Jose or by private placement. The foundations' ownership. No reports were filed until June phine and Winfield Baird Foundation, Inc. books reflect more than 13,000 securities 1965, shortly after Baird had been advised and the Lansing Foundation, Inc., as charita transactions in the period 1955 through 1963 by our staff that the failure to file these ble foundations between 1936 and 1944, and alone. During the period from 1953 through reports could constitute violations of Sec from their inception has controlled them and 1963 purchases of securities totalled $118,- tion 16(a). directed their activities. In 1950 he organ 833,100 and sales $125,815,812, with the total In support of his offer of settlement, Baird ized registrant, which became a member of dollar volume in most years exceeding or states that he is 72 years old and in 111 the New York and American Stock Ex nearly equalllng the year-end value of the health, that the foundations were at all changes, and he was a general partner of the corpus of the foundations. times substantially engaged in bona fide firm until his resignation in June 1967. Dur During the period from 1950 through 1962, charitable activities and that their income ing the time he was actively associated with the foundations also extended loans totaling generated by the activities described above the firm, he was the person most responsible more than $18 m11lion to some 40 persons was devoted wholly to charitable purposes, for directing its activities and setting its in connection with the purchase of securi including a large number of contributions to policies and most of the firm's customers ties. Loans for the purpose of purchasing a broad range of charitable organizations. He were his customers. securities, extended to 14 persons who were asserts, among other things, that respondents During the period from June 1950 to Oc customers of registrant, were in amounts believed that their activities in connection tober 1963, Baird caused the foundations, exceeding those which brokers or dealers with the foundations were not subject to the although not registered with us, to engage may extend under applicable provisions of provisions of the securities laws here in in activities which amounted to the conduct the Exchange Act and Regulation T of the volved, and that such activities have not of a large-scale broker-dealer business.3 As Board of Governors of the Federal Reserve caused any injury or loss to their customers. detailed below, these activities in~luded the System and were supported by collateral In appraising the mitigating factors urged purchase and sale of securities in large vol other than that permitted by such provi upon us we were mindful that the violations ume and on an almost daily basis, for the sions. Those loans totaled more than $17 in this case were of a serious nature and ac~ounts of others as well as for their own million and included loans of $11,500,000 to continued over an extended period of time. accounts, extensive transactions with per one person during the period from October By fa111ng to register as broker-dealers the sons who were not broker-dealers, the ex 1950 through October 1961. Throughout most foundations avolded our regulatory scrutiny tension of large loans in connection with the of that period the credit extended to this of the records and reports that registrants purchase of securities, and various related person was more than $1 milUon in excess are required to maintain and file, which activities typical of a broker-dealer business. of that permitted, exceeding such amount at serves to prevent as well as to uncover im Moreover, the foundations' income was de one point by more than $4 milllon. A loan of proprieties affecting the interests of inves rived primarily from their securities activi $1,514,000 to another person to purchase tors and the securities markets, including ties. While charitable foundations may en stock with a market value of $1,852,000 was the excessive extension of credit in viola gage in securities transadions that are part also improper since the only collateral fur tion of the restrictions as to margin and type of their normal activities of managing funds nished was the purchased stock. During the of collateral which are designed among other devoted to their charitable purposes without period 1954-1961, another person was loaned things to prevent excessive securities specu $70,250 to purchase stock on no collateral lation. The failure to register is thus seen to 2 Baird represents that aside from liquidat other than the stock purchased which was have had a direct relationship to the use ing transactions by the foundations, his fu traded only in the over-the-counter market. by Baird of the large pool of capital held ture trading activity through registrants During the period from September 1956 by the foundations to provide sizeable loans successor firm by him and any other business through March 1963, loans of $153,325 to to persons for securities purchases in viola entity controlled by him is not expected to purchase stock were made to yet another tion of those restrictions, as well as to the exceed 5 percent of the annual volume of person, which exceeded permissible amounts violation of Section 16 (a) . that firm. by as much as $31,000. Our conclusion that under all the circum a The foundations maintained their offices As noted, the income of the foundations stances It is appropriate in the public inter in registrant's offices. The work involved in est to accept the offer of settlement was operating them, including record-keeping, was derived primarily from their securities based principally on the facts that the foun secretarial and clerical functions, was per activities. Thus, in the 1953-1963 period net dations are now inactive, have been liqui formed by Baird and other of registrant's gains on the sale of securities totaled $21,- dated in part and will be fully liquidated personnel, and registrant also provided the immediately upon the determination of a necessary supplies, all without expense to • Section 3 (a) ( 4) of the Exchange Act de claim of possible tax liab111ty asserted the foundations. The foundations main fines a "broker" as a person "engaged in the against them by the Internal Revenue Serv tained accounts with registrant and con business of effecting transactions in securl ice, and that Baird is no longer associated ducted certain of their securities transM tt.es for the account of others." Section 3(a) with registrant or with any other broker tions through registrant, in which registrant (5) defines a "dealer" as a person "en dealer or investment adviser and under the charged such commissions as were required gaged in the business of buying and selllng terms of the offer will be precluded from en by the rules of the New York Stock Exchange. securities for his own account." gaging in the securities business in any August 1, 1968 EXTENSIONS OF REMARKS 248:69 capacity with a broker-dealer or investment millions of dollars of credit to prominent in 1966 and has claimed to have more than adv:iser.5 businessmen customers." 200 members. The group also is being in Accordingly, it is ordered that: Among those cited by Patman as engaging vestigated by authorities in Illinois and ( 1) the proceedings with respect to David in big stock and credit dea1s with Baird Michigan. G. Baird be, and they hereby are, discon through the foundations were Serge Seme In return for a membership fee of up to tinued provided that if it shall appear at any nenko, a Boston banker with movie industry $10,500, the organization offered to organize time after the issuance of this order that interests; Floyd B. Odium, a promineDit New a pacltage of private trusts and foundations Baird has breached any representation con York financier; W1lliam Zeckendorf, once a that supposedly would minimize the mem tained in or any term or condition of the of real estate magnate, and Conrad Hilton and ber's income and estate taxes. This was fer of settlement, the Commission may, upon other members of the hotel family. usually accomplished, according to the 30 days notice to Baird, order a hearing to The SEC said Baird, then the leading part group's claims, by setting up a nonprofit determine whether a breach has occurred ner of Baird & Co., a Wall Street broker foundation that took over the member's and to afford Baird an opportunity to deny dealer, used his foundations "to engage in business (supposedly making all the income that a breach has occurred or to establish activities which amounted to the conduct tax-free) and then hired the member to op mitigating circumstances with respect to of a large-scale broker-dealer business," al erate it. Trusts linked to the nonprofit such breach. If Baird fails to appear at such though the foundations were not registered foundation assertedly took the member's hearing or upon such hearing if the Com with the SEC. house, stocks and certain other assets off the mission finds a breach of any representation, The foundations carried out transactions tax lists. term or condition of the offer of settlement, in more than 630 issues from 1950 to 1963, The three indicted ABC trustees were Rob the Commission may, without further pro including transactions with 340 persons who ert D. Hayes, managing trustee and a Bar ceedings, impose such sanctions as it deems were not broker-dealers, the SEC said. rington, Dl., sales-training executive; Richard appropriate under the circumstances and Transactions with one person alone ex J. Stephenson, a law school graduate from may determine such proceedings against ceeded $25 million, the SEC said, but did not Chicago; and J. Alton Lauren, a Chicago real Baird in accordance with the provisions of identify him. estate appraiser. The California promoters Rule 7(e) of the Commission's Rules of The foundations bought $118.8 million indicted were B. Douglas Fahy and Charles Practice; worth of securities and sold $125.8 million R. Billings, Long Beach insurance men, and (2) the proceedings with respect to Baird worth from 1953 through 1963, the SEC said. Gustave Galas, a Santa Ana lawyer. & Co. and W1lliam D. Brome be, and they ILLEGAL LOANS CHARGED ALLEGED LEADER hereby are, discontinued. Futhermore, the SEC said, the foundations The individuals indicted only on the con By the Commission (Chairman Cohen and loaned more than $18 million to 40 persons spiracy charge were James R. Walsh, of Commissioners Owens, Budge, Wheat and in connection with securities purchases from Fontana, Wis., who has been described as the Smith). 1950 through 1962, including $11.5 m1llion to principal architect of ABC; Lyman Garber, a ORVAL L. DUBOIS, one person. Some of the foundations' loans Beverly H1lls, Calif., lawyer, and Fred K. Secretary. tO customers of Baird & Co. were larger than Dell. a Barrington, Ill., training expert. allowed by Federal Reserve regulations and The defendants could be sentenced to from (From the Washington Star, July 15, 1968] were not backed by required types of collat one to 10 years in prison for each count of FOUNDATIONS PROBE FIGURE IS BANNED BY eral, the SEC said. grand theft or conspiracy on which they SEC DECISION Income of the foundations came mainly might be convicted. (By Lee M. Cohn) from their securities activities, the SEC said. The first oount of the indictment, which Income and donations totaled $37.1 mlllion alleges that the defendants conspired to David G. Baird, the target of a 1963 con from 1953 to 1963, of which $21.9 . million commit grand theft and fraud and to obtai:c gressional investigation of tax-exempt foun came from net gains on sales of securities, $5 money by false pretenses, links all uine de dations, has been forced off Wall Street by million from interest and $3.5 million from fendants to the operations of ABC in Orange the Securities and Exchan~ Commission. dividends, according to the findings. County between March and December 1967. In an opinion issued earlier this month, The SEC said Baird resigned as a general It states that Messrs. Fahy, Billings, Galas, the SEC said Baird had illegally used three partner in Baird & Co. in June 1967 and as Dell and Garber held or attended meeting5 foundations be controlled to engage in mul a 11mited partner last December. The three where the ABC plan was discussed with tim1llion-dollar stock transactions. foundations are inactive and in the process prospective members. According to the in Rather than imposing sanctions, the SEC of liquidation, the SEC said. dictment, prospective members at some of accepted Baird's settlement offer, which bars these meetings were shown a film prepared him permanently from engaging in the se Another investigation of the Subcom by Messrs. Hayes, Walsh, Stephenson and curities business in any capacity with a mittee on Foundations involves the op Lauren. The first count also alleges that Mr. broker-dealer or investment adviser. erations of an organization known as Galas received a total of $1,875 from three Without admitting any violations of law, Americans Building Constitutionally Orange County doctors in July 1967 for the Baird consented to the SEC's findings. The purpose of setting up a foundation for them. SEC noted in offering the settlement he had ABC-Barrington, Ill. This organization was allegedly mass-producing tax-ex The second and third counts in the indict said he was 72 years old and 111. ment charge the three ABC trustees and Mr. PATMAN LEADS PROBE empt foundations for a fee of $10,500. Hearings were held in October-November Fahy with grand theft in taking $8,000 from Rep. Wright Patman, D-Tex., charged in a each of two Orange County men who were to 1963 report that Baird had used three "chari 1967. Three of the trustees of Americans have foundations created for them by ABC. table" foundations to cloak tax-free stock Building Constitutionally have now been Mr. Billings also is named in the second deals, banking operations and other profit indicted in California on grand theft count. The three other counts of grand theft making business ventures. charges. The Wall Street Journal of July involve the $1,875 received from the three Patman, who has been crusading for tighter 25, 1968, covers the indictment as follows: doctors and name the three trustees and regulation of tax-exempt foundations, said Messrs. Fahy, B1llings and Galas. NINE TIED TO GROUP FOSTERING TAX SIDESTEP None of the six counts in the indictment Baird used his foundations as "multimillion FOUNDATIONS INDICTED FOR THEFT AND FRAUD dollar, tax-free securities dealers-dispensing spell out exactly why or how the receipt of (By Byron E. Calame) the money from the prospective members constituted the alleged grand theft, fraud 5 As noted, under the terxns of the offer Los ANGELES.-The three top officials of an Illinois organization that claimed to be or obtaining money by false pretenses. But of settlement we make no findings as to the attorney general's offi.ce has stated in the allegations with respect to registrant. In helping individuals use trusts and founda tions to avoid taxes, and three of its califor previous court proceedings that it believes "a view of the Division's recommendation that major portion of ABC's advice is false and we accept the offer and the other particular nia promoters, have been indicted on grant theft charges by an Orange County grand misleading" and that it questions whether circumstances of this case, including the fact the package of foundations and trusts cre that Baird dominated registrant during the jury. All six of the offi.cials and California pro ated by ABC can legally provide all the bene period of the activities in question, that con fits claimed for it by ABC's promoters. siderable time has elapsed since some of the moters of Americans Building Constitution events we have discussed took place, and ally, or ABC, plus three other promoters of It was learned yesterday that some of the that the composition of the firm has changed the organization, also were indicted on defendants have already been arrested, but and, as stated above, Baird will be disas charges of conspiring to commit grand theft their identity couldn't be immediately deter sociated from the successor firm, we have and fraud and obtain money by false pre mined. LAWYERS DISCUSS PLAN considered it appropriate in the public in tenses. The indictments followed a 20-month terest to dispose of these proceedings with investigation of the group by the California The ABC plan has generated considerable out addressing ourselves to those allegations Attorney General's offi.ce. discussion among tax lawyers across the and shall accordingly discontinue the pro The nationwide activities of the organiza country. For example, recent seminars on ceedings as to registrant. Our action in this tion were first disclosed in a Wall Street private foundations held in New York and respect is not, of course, in any way in dero Journal story last August. Since then, both Las Vegas by the Practicing Law Institute of gation of the principles regarding the re the Internal Revenue Service and Congres New York have included a presentation sponsib111ty of registrants for activities of sional subcommittee have announced in called the "ABC" Foundation Plan: Magic their principals and their employees. vestigations of ABC, which was started early Formula or Sham? 24870 EXTENSIONS OF REMARKS August 1, 1968 ABC's three trustees are currently fight presentation by an ABC representative. If technology. Large and complex systems have ing a Chicago Federal court order that would the prospect decided to join, he would make a momentum of their own. Their objective force them to turn over a complete list of an initial payment of $1,050. This payment was to give man greater control. The result members and certain other information to covered 30 hours of instruction in how to is a tragic irony: systems now tend to con the IRS. All three trustees had previously re use the complex legal web of foundations trol the individual, to isolate him, and even fused to provide the information in response and trusts that ABC claimed it could create to maim him. to an IRS summons issued la.st October. for the member to help him avoid taxes. Let us focus for a moment at the human The IRS has expressed doubts about the le COST ESCALATES equation of the automotive system, at the ga.lity of the ABC plan and warned last Oc risk of over-simpllfication. On the one hand, tober that "the tax consequences to those Upon completing the 30-hour course, the it is a mode of transportation which is who participate could be adverse." new member had the option of paying $4,200 owned and directed by the individual, giving The three trustees refused to provide sim more to have a nonprofit foundation created him mob111ty, .freedom and privacy. The pri ilar information to the Foundations subcom for his benefit, or paying $9,450 more for the vate automobile is, if anything, a symbol of mittee of the House Small Business Commit entire ABC package of foundations and individual power, success, and glamour in tee last fall. Mr. Walsh also refused to answer trusts. It couldn't be determined whether the midst of a society whose images are numerous questions put to him by the sub ABC has continued to actively seek new mostly impersonal, automated, and large COill.IDdttee headed by Rep. Patman (D., members or has modified its plan in any way scale. In his car the American individual Texas) and ended up walking out of the in recent months. need not feel dwarfed, out of place and with hearing room while he was still being ques Mr. Walsh said last fall tha.t none of the out a say or a role. On the other hand, there tioned. Mr. Walsh told the subcommittee trustees received any money from ABC, but are these appalling human statistics: that he was then the subject of an ms he admitted then that his own foundation The deaths of nearly 2,000,000 men, women, investigation that could lead to the filing of received an undisclosed amount of money and children on our highways in the past criminal charges against him. At that time, from ABC for certain services it provided to 60 years of the automotive age. Rep. Patman indicated that contempt cita ABC. Some of ABC's money has gone to pay Tens of millions of injured and uncounted tions would be sought against the balky wit the legal costs of Messers. Fahy and Billings thousands crippled for life in this same nesses, but the subcommittee hasn't issued in theLr legal battle with the state attorney time period. any yet. general's omce here, according to Mr. Fahy. These statistics continue to grow on a dally, The Orange County indictments are the Sources close to ABC's operations said last monthly and yearly rate: result of an investigation begun early last fall that a significant number of its members On an average day highway casualities in year by Lawrence R. Tapper of the charitable were medical men, including chiropractors, the U.S. total over 10,000 injured. trust section of the California Attorney Gen dentists, general practitioners and osteo Average weekly deaths constitute a tragic eral's otnce. When Messrs. Fahy and Billings paths. Those who joined ABO could recoup toll of more than 1,000. refused to answer certain questions put to all or part of their initial outlay through the Economic losses average about $1 billion them by Mr. Tapper, the deputy attorney organization's "referral system." Mr. Walsh a month. general sought to have them held in con explained in the interview last fall that 1f one Each year more than 8 million days of tempt Of court. Despite a year-long legal member could convince another member to hospitalization are now required merely for battle, both men were eventually sentenced join, his foundation would receive a $2,000 the care and treatment of crash survivors. to jail until they answered certain of Mr. "endowment" out of the fees paid by the There is a more sobering fact about our Tapper's questions. Mr. Billings purged him new member. The first member's foundation technological age that the best minds and self of contempt earlier this month after would also get $1,000 of the fees paid by tools of modern science have not been spending 38 days in the Los Angeles County any new members attracted by the second brought to bear to any great extent on Jail. But Mr. Fahy avoided arrest in the con member, and $500 of the fees paid by the this tragic problem of human loss. tempt matter by remaining outside the next "generation" of members. Traffic safety has largely remained out state and never was jailed. It couldn't be side the areas traditionally of concern to immediately determined if the contempt ci most of the professionals who could con tation against Mr. Fahy would now be tribute their skills to its solution. dropped. THE AUTOMOBILE-SOURCE OF - The signs of change, however, are clearly IDENTITIES WITHHELD PROTECTION OR OF DANGER? with us. In fact, beginning about a dozen Several of the persons questioned about years ago, a few research workers here and ABC have maintained that such inquiries there began to uncover the facts which have were an invasion of their privacy and that HON. RICHARD L. OTTINGER increasingly pointed the way to the pos the rules of ABC prohibited disclosure of the OF NEW YORK sib111ty of great reductions in these tragic names of its members. In the membership IN THE HOUSE OF REPRESENTATIVES totals of human and property damage. agreement, the ABC member supposedly In outline, the problem divides logically promises never to divulge any of the Wednesday, July 31, 1968 into three parts, in each of which are cir "methods, procedures Oil' techniques" used, Mr. OTTINGER. Mr. Speaker, in the cumstances which contribute greatly to the or the identity of any other member. 2 years since he was named Director of losses that continue to occur. The indictment which was handed up by the National Highway Safety Bureau, We refer to these three parts of highway the grand jury earlier this week, is being han safety as the pre-crash, crash, and post-crash dled by H. Warren Siegel, a state deputy at Dr. William Haddon has contributed phases of the problem. torney general, with the assistance of Michael greatly to a highly significant effort to In the first, or pre-crash phase, the issues R. Capizzi, deputy Orange County district create a system in which the design of are those which determine whether or not attorney. the automobile may serve as a means of a crash takes place. Here, for example, we Mr. Hayes said in an interview last October protection to its occupants, rather than ~re concerned with drunken driving, blow that he was introduced to Mr. Walsh, who as an additional source of hazard. The outs and the other mechanical !allures of had developed the package of foundations effort is continuing, and it is worthwhile. vehicles, medical conditions which may lead and trusts used by AEC, in 1965. Mr. Hayes, Dr. Haddon recently gave a speech on to incapacitation while driving, and those 67 years old, said he and Mr. Walsh created features of highway design and maintenance ABC in early 1966, and that the ABC plan was this topic and on the responsibilities of such as lighting and markings which make introduced to individuals around the country his agency to the American Automobile it more difficult for the operator to continue by employes of Sales Analysis Institute, a Association. Knowing that my colleagues safely on his way. sales training concern owned by Mr. Hayes. will be as interested in this question as I, In the second, or crash phase, we are con The Sales Analysis Institute employes worked I ask that Dr. Haddon's speech be re cerned with the circumstances which, in the with local promoters such as Mr. Fahy who printed in the RECORD. crash itself, determine whether or not any would set up meeting of prospective The speech follows: injury occurs, and 1f so, its severity. Here, members. the success of the vehicle "package" in pro Mr. Walsh, who is about 50, has repeatedly THE INDIVIDUAL AND THE QUALITY OF HIS tecting its occupants is the paramount issue. claimed that he has no official connection ENvmoNMENT Also important is the success of the highway with ABC, although he has been described by (Remarks of Dr. William Haddon, Jr., Direc designer in providing the safest possible a source close to the Patman subcommittee tor, National Highway Safety Bureau, highway crash design of the road, for ex as the "principal architect" of the ABO idea. Federal Highway Administration, U.S. ample, by ensuring that vehicles that do Mr. Hayes and Mr. Walsh maintained in Department of Transportation, before the leave the roadway will not be able to hit interviews last fall that ABC's purpose was to Annual Traffic Safety Management Work solid objects that decelerate them too "·awaken the average creative person" to the shop, American Automobile Association, at abruply to allow the survival of those in benefits of "restructuring" his business and the Mayflower Hotel, Washington, D.C., volved. estate on a not-for-profit ba.sis. They claimed June 27, 1968) It is strange with respect to the crash that ABC was simply "Henry Fordizing"--or The miracles and blessings of the· age of phase that most Americans still do not un mass producing-legal and tax expertise, long technology need no new spokesmen. Yet derstand that it is scienti·fically possible for avallable only to the wealthy. man, who made this technology to master them to ship themselves and their loved ones ABC recruited its members by word of his environment and to better his life, pow just as successfully packaged and, conse mouth. At an introductry meeting, prospec senses that the human values which make quently, as safely as they ship dellcate wed tive members would be given a three-hour llfe worthwhile now seem threatened by this ding presents and other fragile cargo. Yet August 1, 1968 EXTENSIONS OF REMARKS 24871 many who would consider it preposterous to title provides a mandate to establish appro cially the sponsoring under both safety Acts ship a teacup loose in an empty barrel with a priate Federal motor vehicle safety standards, of the research that must be greatly intensi hostile interior and sides that may fall open, the first set of which went into effect in the fied if we are obtain the facts upon which all do precisely this with themselves and their current model year. An additional group of of our progmms must increasingly be based. children, and at high speed. standards has been applicable to the 1969 The scope of this program is a large one Since crashes will continue to occur in model. and its objectives ambitious. The success of substantial numbers, for the foreseeable fu Title I of the Act also provides the legal the program depends, however, on the degree ture, we are placing strong emphasis on authority to enforce such vehicle and equip to which it truly cares about the value of greatly improving the cr·ash design of v·e ment standards and specifies that the manu human life and the quality of the environ hicles, and especially the safety of the occu facturers must notify purchasers of vehicles ment in which we live. This care must be pant compartment itself. and equipment known to have defects, and focused not only on protecting human llves Similarly, at a time when our children con to notify the Department as well. and preventing human injuries but also on tinue to learn of the danger of wolves in the In addition, the Bureau is to conduct re the role played by the individual in the pro forest, we must somehow also educate them search, testing, and development and train gram. We seek not to build a new, impersonal and ourselves to the hazards of our modern ing activities to support the current and system to cure the evils of another or to fill environment, and what can be done about projected actions of the Bureau. the vacuum of past inaction with all-per them. For example, an uncushioned bridge Under Title II of the National Traffic and vastve Federal power. pillar, or a light pole designed so that it Motor Vehicle Safety Act, the Bureau is also Our search is rather to ensure a harmo directed to establish standards for tires, and nious balance between the rights of a free kills rather than shears when hit, is a hazard citizenry and the necessity for orderly and far more serious than any wild animal could the first standards under this authority have possibly be, even if loose in a downtown area. been issued. responsible actions. The task of the private Similarly, the steering shaft of a car does not Under Title III of the Act, we are to study sector in this program cannot be over the needs for research and test facilities and emphasized, particularly where organizations need to be a spear aimed at the chest; rather such as yours provide the most direct link it can be redesigned as a cushion that pro report back to the Congress. This report will tects the driver, as required under our De be submitted in the near future. with individual drivers and citizens as well Finally, under Title IV of the National as with State and local ofilcials. partmental standards on all vehides manu Already we see the promise of results. For factured after January 1, 1968. Traffic and Motor Vehicle Safety Act, the National Driver Register, in which all States instance, the in~tial emphasis of the program Once the crash has taken place, we are participate, was transferred from the Bureau on improving the crashworthiness of the concerned with the post-crash phase and the of Public Roads to the National Highway vehicle system shows signs of payoff. Da-ta circumstances which in it determine whether Safety Bureau. This is a mechanism under from Sweden on the effect of a safety belt or not many will live or die. Here, of course, which any State can check on the major occupant restraint system shows a. 30 per the principal issues involve the rapidity and aspects of a driver's record in other States. cent reduction in minor injuries and 80 per quality of the post-accident response; the cent for those of fatal grade. This study of communication system and emergency Under the Highway Safety Act of 1966, our job is the establishment of uniform stand more than 2'8,000 highway crashes revealed transportation; and the provision of the best that not one of 9,345 occupants wearing in first-aid and medical care. ards for State highway safety programs. On June 27, 1967 Secretary of Transportation, combination shoulder-lap safety belts was Unfortunately for many of the dead and Alan s. Boyd, issued the first group of these. fatally injured in serious crashes at speeds injured, emergency services in a large por They had been developed during the preced up to 60 miles per hour. But non-belted tion of the United States are archaic at best. ing seven months with very considerable par occupants were killed at speeds as low as 12 Although there are outstanding exceptions in ticipation-as appropriately required by the miles per hour. Clearly, these figures under some areas of the country, in most there have statute--of a wide variety of individuals and score the need to promote a wider and more been no requirements that ambulance at organizations from virtually all the States, effective use of such restraint systems. Pre tendants be expert in first-aid, that their from organizations of state and local govern liminary evidence shows comparable reduc equipment meet acceptable standards of any ment officials, from National and other safety tions due to the introduction of energy type, or that their patterns of operation be organizations, and from a wide range of in absorbing steering shafts and the new lami sufficient for the great responsibility placed terested groups. These standards cover the nates for windshields. upon them. We believe on preliminary evi following 13 areas indicated by their titles: We have recently heard of the results of dence that such deficiencies are contributing Driver Education better crash design of the highway environ directly to thousands of deaths each year in Driver Licensing ment. There has been only one fatality on the United States, especially in rural areas. Motorcycle Safety Texas highways in collisions with signs That the shortcomings of our present situ Traffic Records mounted on breakaway supports in the 27 ation are unnecess·ary is illustrated by the Alcohol in Relation to Highway Safety months since introduction of this safety fact that as a nation we have demonstrated Periodic Motor Vehicle Inspection feature as contrasted with 80 fatalities in and applied a completely different level of Motor Vehicle Registration colliaions with non-brea~away signs in the planning, technology, and understanding in Highway Design, Construction, and Main preceding 2 years in tha.t State. our handling of very similar injuries occur tenance The progress in other areas, particularly ring under the conditions of jungle warfare. Traffic Control Devices as to those human and system factors which By contrast, for example, few on the do Identification and Surveillance of Accident account for crashes, may well be more diffi mestic scene expect to see helicopters work Locations cult to achieve. More and better accident ing rapidly in transferring the injured to has Codes and Laws investigation data and methods are urgently pi tals, the use of highly skilled medical Traffic Courts needed as well as extensive research and corpsmen and other paramedical profession Emergency Medical Services development. In many of these areas we are als; or for that matter survival rates for A very important provision of this law, one dealing with a complex of factors concerned serious injuries anywhere near as high as which I very strongly endorse personally, is with human behavior and the need to change those now achieved routinely under military the requirement which places in the hands that behavior. Again, the role of organiza conditions. This is all the more tragic when of each Governor the authority for all State tions who deal directly with individual it is considered that on the civilian scene the activities under this grant-in-aid program. drivers is crucial whether it relates to the logistical requirements can be anticipated This was a move on the part of the Congress problem of alcohol in driving or the need for with a precision impossible under the shift to ensure a unified approach to this import better maintenance practices for vehicles in ing conditions of modern war. The highways ant problem within each State, and among use. continue in the same locations, the hospitals all the States. I am confident that your concern for the do not move about, the evening and weekend The great importance of work at the local driver, his passengers, and other road users hours in which a greatly disproportionate level was also emphasized. At least 40 per will continue to engage your best efforts and share of the major crashes take place, are all cent of the funds must be spent in local talents in making the automotive system well known in advance. Yet such considera communities, where the problem can and more compatible to the needs of the indi tions are only now beginning to be weighed must be approached by those closest to it. vidual and of our society. by those concerned with the survival of those The Highway Safety Act and those who injured on the nation's roads. framed it did not anticipa;te a Federal take In recognition of the seriousness of the over of functions we all feel should be left highway safety problems and the need to to the States. The legislative history makes THE NEGRO REVOLUTION AND bring the nation's resources to bear on them, very clear that the purpose was not to estab TRADE UNIONISM President Johnson in 1966 requested the lish Federal licenses, certificates of title, Congress to take action. Within six months, police forces or any other such activities. a record-setting pace, with the suggestions Rather, the objective WQS to provide a means HON. WILLIAM F. RYAN and support of organizations such as the for helping those who are nearest to the prob OF NEW YORK AAA, the Congress returned a comprehensive, lems involved to deal with them most ef well-constructed package consisting of two fectively. Judging from the exceptionally fine IN THE HOUSE OF REPRESENTATIVES Safety bills for the President to sign into response in almost every State during the Wednesday, July 31, 1968 law. Let me now briefiy outline the areas past year, this objective will be achieved and which these Acts cover. the Federal role will be one of standard set Mr. RYAN. Mr. Speaker, with the two The National Traffic and Motor Vehicle ting, in cooperation with the States, the pro major political parties talking about jobs Safety Act is the most well known. Its first vision of the financial assistance, and espe- and job training for the unemployed, 24872 EXTENSIONS OF REMARKS August 1, 1968 either through private enterprise or the ifications--such as age, for instance-of ex that "affirmative action" and all programs public sector, it is appropriate to con isting apprentice programs. which deliberately encourage the recruitment And while the industrial unions with their and advancement of minority group work sider the role of the apprenticeship sys large Negro constituencies have been more ers are something different from equal em tem in the opening of job opportunities responsive in providing a remedy for the ployment opportunity. The fact of the mat for black Americans. racial malaise in this country-some of them ter is that the goal of equal employment ln too many instances it has been more continue to thwart the equitable advance opportunity can be best realized through a barrier than a f·acilitator. Despite De ment of their Negro members through dis color conscious policies which are remedies partment of Labor regulations prohibit criminatory seniority systems. Apparently, for past discrimination and which, in some ing approved apprenticeship programs the wrath of their white membership--the instances, may modify some of the union white majority-inhibits the bold approach procedures of which I have been speaking. from discriminating, opportunities are that 1s required. In short, union leaders are Otherwise, I fear, the attack on union nego only now just beginning to open on an acting like our political leaders who refuse tiated protective devices will destroy their equal basis. to face up to the implications of the Kerner effectiveness for both black and white work I include in the RECORD a speech by Report. ers-and we will all be the losers as the William Gould, New York labor lawyer, What makes all of this particularly tragic result. to the Long Island Labor-Management in the case of the unions, however, is that Part of the price may be revision of ap Institute on "The Negro Revolution and they were born out of the deeply-felt need prenticeship programs which are outdated to protect working people who, by them because of technological developments. But Trade Unionism": selves, could not obtain equitable treatment that is a relatively small price to pay. THE NEGRO REVOLUTION AND TRADE UNIONISM from their employers or their state. The Let me be specific about some of the things (Speech by William B. Gould to the Tri- overriding goal of the trade union move that are wrong and what must be done about County Long Island Labor-Management ment was to eliminate wage competition be them. Insofar as recruitment into apprentice Institute, June 23, 1968) tween workers and to establish standards ship programs is concerned, C. J. Haggerty's I am pleased to have this opportunity to which would do away with exploitation. The February 1 letter to Secretary of Labor Wirtz speak with you this morning since, as leaders mechanisms established to achieve these goals appears to be an important step forward be of your respective unions, you are the men took a number of forms: the apprenticeship cause it promises "maximum utilization of who will have a significant role in determin program, hiring halls, the de facto closed responsible civil rights organizations willing ing whether this nation redeems its promise shop, all of which, among other things, were to join in a cooperative effort ..." and, in of equal employment opportunity-a prom designed to keep the supply of organized addition, support for programs of minority ise made most recently through the lan labor in the trade so scarce that the metu recruitment, endorsement of apprenticeship guage of the Civil Rights Act of 1964-or bers would have work during periods of eco programs like the Urban League sponsored whether we collectively slip back off the abyss nomic decline. And the industrial unions LEAP. But, as The New York Times said on into continuous racial disorder and violence. in addition to negotiating union security February 19 " ... the reforms now promised At the outset, let me be frank about where provisions which require membership as a will mean little where local unions continue I think the blame lies for the current racial condition of employment--put together a to find excuses for keeping apprenticeship tensions. While it is true that most industrial seniority structure which protects union programs almost totally "lily white." members (and non-union) in varying de unions have little 1f anything to say about In the meantime, however, I believe that hiring policies--and that racial discrimina grees in the case of promotion, layoff and the AFL-CIO, to begin with, should make tion in employment generally preceded the bump-back. Thus, an employer is now lim clear its endorsement of a Model Cities Pro advent of the labor movement, the natonal ited in his ability to affect the worker's em gram trainee classification which will im ployment status without considering length part construction trades skllls to minority labor movement--both the craft and indus of service. trial unions--must shoulder a very major group workers and which will culminate in All of these tools represent an obvious a journeyman's card for the trainee. The portion of the responsib111ty for the white improvement over the old order in my opin racism, which, according to the Kerner Re Labor Department has already approved such ion. They were devised to protect those who a trainee classification in a Syracuse, New port, lies at the heart of the ever-increasing could not protect themselves individually. and self-destructive polarization of the races York federally assisted project. Labor union But now, gentlemen, you are confronted with support for this type of program-in effect, which we witness today. Having said this, the Negro Revolution which, like the labor however, I also believe that it is important training in lleu of apprenticeship for em movement, is, in part, a demand to share ployees who have been bypassed by father to take note of the role which certain labor in the material goods from which a part of leaders and unions have played in improving son or relative, friend apprentice programs the community has been excluded. So long as might go a long way toward easing ghetto the lot of black workingmen and, most sig these union devised procedures-apprentice nificantly, the impact that their efforts have unrest. ship programs, hiring halls and seniority But this program-in which unions, em had within the unions and at the work place are seen by the Negro community as ex over which the unions have jurisdiction. ployers, the Negro and Puerto Rican com clusionary devices, the labor movement will munities should establish jointly-must lead District 65, RWDU has made a substantial not be able to meet the challenge of the effort in developing a training program and somewhere-in this case to a journeyman's Negro Revolution and will not be able to card. Otherwise, we are only going to fan reference system which is dellberately aimed assist in wielding together a Negro-labor at minority youth. Harry Van Arsdale has the fires of frustration and engender new coalition geared to demand economic and violence and destruction. We simply can recruited a large number of Negro and Puerto social reform in this country. You must, Rican workers who now enjoy caft union not be satisfied with construction programs where necessary, modify legitimate protective no matter how properly motivated-which membership in his prestigious IBEW. And devices so that they wlll be regarded as in even Peter Schoenmann, President of the have no objective beyond keeping the sum struments to speed the advance of minority mer "cool." United Association of Plumbers and Pipe group workers-and not as instruments of fitters-who one year ago railed against the oppression which thwart their interest. In I implore you to lobby your international invidious concept of "affirmative action" as short, the labor movement must act as rep unions-and the AFL-CIO to make the Model a procedure foreign to his union's traditions, resentative of an the workers in the com Cities Program meaningful to ghetto resi has now followed the lead of C. J. Haggerty munity-no matter how lowly their station dents. It should be emphasized that accept (President of the Building and Construction in life, no matter how difficult their plight. ance of the trainee classification and thus ac Trades Department of the AFL-CIO) in Fundamental to this process, it seems to ceptance of the statute's intent to increase stating a desire to recruit Negroes and other me, is the acceptance of two assumptions. employment opportunities for those in the minority group apprentices. And, of course, The first is that the white majority in the ghetto, wm lead to construction which wm the Workers Defense League has done yeoman unions-like the white majority in the na increase work opportunities for all workers. duty in preparing Negro and Puerto Rican tion-must assume burdens which would not And I ask that you do not hide behind the youngsters for apprenticeship examinations. be shouldered 1f the Negro were to remain famillar clicl:w about lack of skllls. As Peter But the cold facts are that only 4% of a second class citizen. In the context of to Millones of The New York Times (February the nation's apprentices in the urban areas day's struggle, the white membership might 18) said: " ... there is no question that many where Negroes have migrated in large num be often likened to the individual worker Negroes lack the basic skills to be such work bers-are minority group people. The Chair who benefited-or thought he .benefited ers as sheet-metal workers and plumbers. But man of the Equal Employment Opportunity from the unorganized shop and thus resisted they presumably also have lacked, at one Commission has stated that a more intensive unionism as a limitation on his opportuni point, the skills of an electrician, yet the effort is needed. The Demonstration Cities ties. The price of social justice and civil or electricians' local in New York, under the and Metropolitan Development Act of 1966- der is a sharing of available work opportuni leadership of Harry Van Arsdale, has made (Model Cities Program) provides that ghetto ties. Otherwise, a despairing Negro commu great strides in adding Negroes to its roles." residents obtain "maximum opportunities" nity will join forces with traditionally anti But the problem of justice for the Negro for employment. But neither the .AFI.r-CIO union elements. The budding friendship is not limited to the craft unions. This fact leadership--nor any international union so between Richard Nixon and Floyd McKis is dramatized by the recent strike by the far as I am aware-has put itself on record sick is already an example of this. white members of the Paperworkers Union 1n support of a "trainee" classification which Secondly, the labor movement at all lev in Bogalusa, Louisiana, in protest against a will lead to a journeyman's card for Negroes els--AFL-CIO, international union, and lo revision of seniority procedures proposed by and Puerto Ricans who may not meet qual- cal unions-must stop telling its members the Office of Contract Compliance-revisions
_., August 1, 1968 EXTENSIONS OF REMARKS 24873 which were accepted by management, but not admittedly a difficult question was that the ent. But there is no doubt that ·there will the union. In the case of the crafts, the prob Commission is not authorized to reform be if there is a will strong enough on the lem is job access. But in mass production, it labor contracts involving "vested rights" of part of the ILGWU leadership. is promotion-more particularly, the basis white employees. It ls my hope that it is not too late for this upon which promotions are to be made. And, Now anyone fam111ar with the process of type of trade union commitment. But that parenthetically, it should be noted that collective bargadning knows that the unions commitment-if it is to be successful-must where business is attempting to hire minor themselves alter these "vested rights" on refiect a willingness to revise and adapt, ity group employees, the opportunity for ad many occasions and that the courts have up where necessary, the hard won security guar vancement and training should be present held such modifications. I therefore sug antees which the unions achieved for an and clearly spelled out. ges·ted in both a report to the Commission other generaticm of dispossessed workers. Prior to the passage of the Civil Rights Act and in an article in the Winter 1967 issue of And to be successful, you gentlemen must of 1964, many industrial unions and employ the Howard Law Journal that an accommo tackle the problem with the same vigor that ers negotiated segregated seniority lines or dation be arrived at between the competing you employed in constructing the house of districts-that is to say, Negroes were limited interests of Negro and white workers. For the labor itself. If this ls not done, the erosion to the undesirable lowpaying jobs-and latter group-the white worker-h.as built urp of your protection may wreak havoc for black whites were privileged to receive the higher reasonable expectations, even if predicated on and white workers in alf industries and in paid, more skilled work. Sometimes, in the segregation, as to the future of its employ all parts of the country. paper industry, for instance, Negroes acted as ment status. "helpers•' and actually performed some of the In brief, I said that under practically no same or similar tasks as white employees circumstances should Negroes displace who received higher pay; sometimes, of whites; that where a valid "line of progres sion" exists-where it is truly necessary to DEMOCRATIC CONGRESSIONAL course, the jobs were unrelated altogether. PLATFORM HEARINGS But the separate seniority pattern was the learn one job before proceeding to the next same. Negro workers should go to the bottom of the line just as the whites had done, unless lt Now everyone agrees that segregated se could be shown that a Negro's presently exist HON. HUGH L. CAREY niority rights are unlawful. But many OF NBW YORK unions--even at the international level ing skllls entitled hUn. to more. I proposed that Negro workers, once having entered this IN THE HOUSE OF REPRESENTATIVES resist a revision of the system which will formerly all-whi'te line, could exercise senior permit the Negro worker to invoke his se Wednesday, July 31, 1968 niority accumulated in the segregated dead Ity accumuilated on the Negro job after a end job-for the purpose of advancement in "residency" period was completed during Mr. CAREY. Mr. Speaker, in an un which the skills of the job could be learned. precedented effort to solicit and repre regard to previously "111y white" jobs. I must This plan was not acceptable to the AFI.r report to you that the AFL-CIO Civil Rights CIO. But now the handwriting may be on sent public opinion throughout the Na Department has been of little help in this the wall. The District Court for the Eastern tion on the major issues facing the matter. For, it contends that any disruption District of Virginia, in Quarles v. Philip Mor American people, a group of Democratic of existing seniority agreements would break ris Company has struck down a departmen-tal Congressmen are planning public hear faith with the interpretation of the Civil seniority system which had its genesds in ings to gather information for considera Rights Act which it sold to its membership past discrlminatlon-prior to the enactment in 1963 and '64. tion by the Democratic National Con of Civil Rights Act of 1964. As the court said, vention Platform Committee. In the AFL-CIO document, Civil Rights: ". . . Congress d1d not intend to freeze an Facts v. Fiction, distributed prior to the entire generation of Negro employees into We are seeking to democratize even Civil Rights Act, the AFL-CIO informed its discriminatory patterns that existed before further the workings of the Democratic members that, while certain seniority plans the act." Party and make certain that all factions might be discriminatory, no employees' One would hope that the .AFI.r-010 Civil and viewpoints are reflected in our seniority rights would be interfered with in Rights Department would take a position on party's platform. We do not have the any way. Quite obviously, this could not this vital matter before more oourt cases audacity of the senior Senator from Illi be if the Negro worker is to achieve some further tarnish the labor movement's image equity to compensate for past discrimina nois who thought he might write his in the Negro community. As the New York party's platform in his own offi.ce. Nor do tion. Sheet Metal Workers well know, you buy Unless a Negro worker is given some little good wlll by integrating as the result of we believe it is possible to distill into seniority credit for the purpose of future court order rather than voluntary action. 3,500 words a responsible, comprehen promotional opportunities and security Finally, I want to deal briefiy with union sive statement on the myriad of issues against layoffs which is based upon time organization of non-union Negro workers facing the American people. worked in the formerly segregated job, he and the impact that this can have on the Thus, with the blessing of our plat is just as effectively denied equality through development of Negro leadership within the form committee chairman, the distin a "grandfather clause" as is the Negro ap unions. It seems to me that one of the more guished gentleman from Louisiana [Mr. plicant to a father-son apprenticeship pro hopeful trends today is the growth of public gram. But collective agreements of·ten es..; BoGGS], we are going to the people to employee unions like the American Federa hear their thoughts, to learn their views, tablish departmental or job classification tion of State, County and Municipal Em seniority which designates the department ployees Union and their enthusiastic repre and to represent their opinions in our or classification as the seniority unit-the sentation of poorly paid Negro workers in platform. These hearings, which will be very department and classification into local government. We must never forget held throughout the country by the par which the Negro worker has been dis that lt was in this cause that Martin Luther ticipating Members, will enable the Dem criminatorily fenced ln. King, Jr. died in Memphis. And in the public ocratic Party to frame a responsible and Without racial considerations, there would employment sector particularly-where the be nothing inherently meritorious ln one responsive platform. two revolutions involving public employees The following Members are participat seniority system as opposed to another. and Negro workers are proceeding ·simulta Younger workers, for instance, might legit neously-there is more opportunity to pro ing in this democratic effort for the imately create a narrow unit out of fear vide equality inasmuch as the system is new Democratic Party and American people: of displacement from older workers in more and no one yet has a vested interest in lt BROCK ADAMS Of Washington, JOSEPH obsolete departments in the plant who have to protect. P. ADDABBO of New York, THOMAS L. ASH plant wide or company seniority. But it is I believe that trade union movement must LEY of Ohio, JONATHAN B. BINGHAM of obvious that a narrow unit-departmental encourage Negro workers to assume leader New York, JOHN A. BLATNIK of Minne or classification-is detrimental to the Negro ship positions as well as to become members. worker who has been denied the right to sota, EDWARD P. BOLAND of Massachusetts, And I should add that at times such encour JOHN BRADEMAS of Indiana, FRANK J. accumulate seniority-in the unit to which agement must call for procedures which both he now advances-because of a discrimina encourage and discourage democratic pro BRASCO of New York, GEORGE E. BROWN, tory promotion policy. A remedy must take cedure inside the union. Sometimes a total JR., of California, JAMES A. BURKE of into account the seniority previously ac exclusion from leadership should obligate the Massachusetts. cumulated and must attempt to compensate unions to take measures which wm guaran PHILLIP BURTON of California, HUGH L. for what would have been obtained but for tee positions for minorities-and in most CAREY of New York, FRANK M. CLARK o1 discrimination. Without such a.n approach, strong unions this can be done; but some Pennsylvania, JEFFERY CoHELAN of Cal the Negro worker's present employment times a union constitution's rigid officer eligi status continues to embody within it past ifornia, .JAMES C. CORMAN of California, bility requirements exclude new minority JOHN C. CULVER of Iowa, DOMINICK V. discrlmlnation. group members-and, accordingly, such rigid At a conference between the Equal Em ities must be removed. DANIELS of New Jersey, JOHN H. DENT of ployment Opportunity Commission and the Perhaps it would be a good idea for the Pennsylvania, JOHN G. Dow of New York. AFL-CIO in May 1966, no union leader ILGWU-formally or informally-to make DON EDWARDS of California, JOSHUA would risk the ire of his white members by sure that some of its large unskllled Negro EILBERG of Pennsylvania, FRANK B. EVANS proposing some type of compromise on this membership become managers. There are no of Colorado, LEONARD FARBSTEIN of New issue. The one-sided response to what is Negroes in this important position at pres- York, THOMAS S. FOLEY of Washington, 24874 EXTENSIONS OF REMARKS August 1, 1968 WILLIAM D. FORD of Michigan, DoN M. and chairman of the National Captive tried to take it from them. The scume was Nations Committee: interrupted by policemen, who escorted the FRASER of Minnesota, RICHARD H. FuLTON demonstrators away for questioning, then of Tennessee. · A PROCLAMATION BY GOVERNOR RONALD REA• released them. KENNETH J. GRAY of Tilinois, WILLIAM GAN ON CAPTIVE NATIONS WEEK IN CALIFOR• Later Jeff Lobaito, who identified hiinself J. GREEN Of Pennsylvania, EDITH GREEN NIA, JULY 14 THROUGH 20 as a. former Conservative party district leader of Oregon. Whereas, the greatness of the United in Greenwich Village, complained to the po LEE H. HAMILTON of Indiana, JULIA States is in large part attributable to its lice because the American flag was "burned BUTLER HANSEN of Washington, WILLIAM having been able, through the democratic around the world" but they had prevented process, to achieve a harmonious national the burning of the Communist flag. D. HATHAWAY of Maine, WAYNE L. HAYS unity of its people, even though they stem Before the disorder, Representative Lester of Ohio, HENRY HELSTOSKI of New Jersey, from the most diverse racial, religious, and L. Wolff, a Democrat from Nassau County JAMES J. HOWARD of NeW Jersey, ANDREW ethnic backgrounds; and said in a speech: JACOBS, JR., Of Indiana, JOHN C. Kl.UCZYN Whereas, the diverse backgrounds of the "People everywhere look to the United SKI of Dlinois, PETER N. KYROS of Maine. people of California enable them to under States as a citadel of freedom. I call on the RoBERT L. LEGGETT of California, CLAR stand and sympathize with the aspirations Soviet Union and mainland China not to ENCE D. LoNG of Maryland, JOHN J. of peoples everywhere who wish to enjoy mume the voice of protest. I call on the So McFALL of California, SPARK M. MATSU the blessings and benefits of freedom; and viet Union and mainland China to face the Whereas, it is fitting and proper that we test of self-determination." NAGA of Hawaii, LLOYD MEEDS Of Wash in California do formally express our sym ington, PATSY T. MINK of Hawaii, JOSEPH pathy with those aspirations held by the (From the New York Daily News, July 15, G. MINISH of New Jersey, WILLIAM 8. peoples of the captive nations; 1968] MOREHEAD of Pennsylvania, ROBERT N.C. Now, therefore, I, Ronald Reagan, Gov LIKE A CRY IN THE NIGHT NIX of Pennsylvania, RICHARD L. OTTIN ernor of California, do hereby proclaim the There comes once a year Captive Nations GER of New York. week of July 14th through 20th as Captive Week to recall the pitiful plight of the mil EDWARD J. PATTEN of New Jersey, Nations Week and invite the people of lions throughout the world held in slavery by THOMAS M. REES of California, HENRY S. California to observe such week with appro Communists. The observance this year began REUSS of Wisconsin, GEORVietnam War, will be the ideal yond the realm of possib111ty that they would "Humphrey's tendency in all relations man to get a true, real detent with Mos really use all of their influence on North humar. relations, political relations, and for cow, a true disarmament and peace, much Vietnam to bring a.bout a cease-fire before eign relations-is to assume the best in other more than any other man whom the Reds the election. But that would merely enable people. His top priority in the world, as he would trust, after the nomination and elec the Democrats to go to the polls saying the sees 1-t now, is social reconstruction. He tion of whom they would not need stopping fighting was over, and thus enhance their thinks first not about the Cold War-Nixon's the Vietnam War, and whom they would use chances of keeping the Republicans out of priority--but about what he regards as the for further extortions of the Vietnam type power for another four years." new Class War in the world between the rtch and for getting economic support for Com I agree with Mr. Reston that the nomina people and the poor people within our own munist countries and for the continued tion of IMr. Nixon (in case he also has a run country, and the rich nations and the poor Communist aggression (which they could ning mate of his o·wn persua.sion) will bring nations elsewhere." carry out sometimes openly, sometimes about an armistice in Vletnam, bringing Now, I believe that that man would best secretely, just as they would wish). thus the aimless and barbaric killing of save the money needed for the poor people, But there is also the question of American Americans and the Vietnamese to an end. I whose mere candidacy would stop the Viet ames. cannot, however, share the logic of Mr. nam war. (He would, by the way, also save The American uncritical cooperation with Reston. What he, indeed, should have cor the lives of Americans and Vietnamese, both Communist Russia and other Communist rectly said is the following: The Soviets dis poor and rich.) This man, in Mr. Reston's countries would mean the full disruption of trust Mr. Nixon because he cannot be fooled own words, is Richard Nixon. American alliances (thus again causing more by them. They are going to make a cease-fire (This year, the Communist agents obvi American expenditures, for America would in Vietnam in order to prevent his election, ously do not encourage and instigate the have to pay everything herself) . The coun and they are going to undertake, I feel sure, riots, because this is an election year and tries of the Free World would partly seek ~Afore the election, some more additional the riots do hurt only the opponents of Mr. their own "cooperation" with Communist "Peace", "friendship", "cooperation", "dis Nixon.) countries, partly and mainly carry out their arma.ment", actions in order to prevent his Mr. Nixon, with his plan for the Negro own policies protecting them against com election. These actions will probably be the economic power, supporting the most able munization. The example of this is today's release of the PUEBLO, the retreat of the and active Negro elements to build up their France. These countries will simply-nobody Soviet Union in Czechoslovakia, some phony own business enterprises, would, of course, knows with what result--refuse to become and uncontrolled disarmament actions also stop a blind squandering of money, voluntary victims of Communism. On the (rocket disarmaments, etc.) following the would give the Negro problem the only pos other hand, however, how wonderful it would nonproliferation treaty, visits, etc. sible reasonable solution and would give the be if America, after the November election, It must be clearly stated that the mere Negro people a real dignity. had a President who would have the "dis candidacy of Mr. Nixon will force the Com trust" of the Soviets and the Communists, Leading politicians of the United States but the trust of countries of the Free World! munists to these retreats and concessions. have voiced their opinions that "world con The cease-fire in Vietnam, however, will re ditions have changed and demand new pri GEORGE BRADA. main phoney and will be followed by a peace orities in American policy. They demand ... which wlll mean the communization of the a shift from policies of confrontation and entire Vietnam, and all other peace actions containment to policies of reconciliation and A BILL TO AMEND THE FARM TAX wlll turn to the disadvantage of the United peaceful engagement. The most important States and the Free World, in case the Com area of reconc111ation-and the top priority LOSS PROVISION OF THE INTER munists reach by them their principal ob for American foreign policy in the next dec NAL REVENUE CODE jective, namely the prevention of the elec ade--is that of East-West relations. This par tion of Mr. Nixon, and if they enable by ticularly includes relations among the United them the election of a man whom they, in States and the Soviet Union, Western HON. THOMAS B. CURTIS the words of Mr. Reston, can trust. That this Europe and Eastern Europe." (International 01' MISSOURI view is not a mere phantasy shows the Herald Tribune, July 15, 1968.) Or we read IN THE HOUSE OF REPRESENTATIVES phoney Communist "retreat" in Cuba. in the central goal of the United States should Thursday, August 1, 1968 1962, just before the elections. By t~ "re be the cooperation with the Soviet Union. treat" the Communists did hurt Mr. Nixon (International Herald Tribune, July 27-28, Mr. CURTIS. Mr. Speaker, I am intro in his bid for the Governorship of Califor- 1968, page 3.) ducing a bill today designed to improve August 1, 1968 EXTENSIONS OF REMA~S 24879 the competitive position of the real farm of the year. Deduction of the costs in cannot do so because of the artificially er in America. Agriculture in recent cluded in inventory must be deferred high price of the surrounding land. It years has become the most controlled until the goods to which they relate has its beneficial aspects of course only sector of the American economy and has are sold and is not permitted when the in the event that the real farmer chooses severely suffered as a consequence. There costs are incurred. Thus, under the ac to sell out as he can then realize a higher are many areas in which we should move crual method, income from sales of in price for his land, but if he sells out he to restore the competitive position of the ventory and the costs of producing or is no longer a farmer. farmer. The administration's regressive purchasing such inventory are matched The magnitude of the effect on the trade policies with respect to agriculture in the same accounting period thereby farm economy has not been accurately illustrated by the recent International properly reflecting income. measured. However, · there are several Wheat Trade Convention which in ef Because of the complexities of the indications that the distortion is signifi fect taxes U.S. farmers wishing to sell bookkeeping chores associated with in cant. For example the Internal Revenue wheat for export and therefore drastical ventories and accrual accounting, the Service has provided the following sta ly reduce their income-see CoNGREs Internal Revenue Service has histori tistics: SIONAL RECORD, page 23790, July 26, cally permitted ordinary farmers to use In 1965, among taxpayers with less than 1968-the parity ratio in agriculture the cash accounting method, even though $50,000 of adjusted gross income, the total farm profits were $5.1 b11lion and total farm which is now the lowest since 1931; and this has resulted in an inaccurate reflec losses were $1.7 billion; about a five to two the interest rates, which are the highest tion of their annual income in many ratio of profits and losses. since the Civil War, reflecting added cases since expenditures are deducted in Among taxpayers with an adjusted gross costs to many farm items; increased the year incurred, despite the fact that income between $50,000 and $500,000, profits. taxes-Federal, State, and local; are only the income produced by these expendi and losses were . in an approximate one to a few areas demanding improvement. tures may not be reported until a suc one ratio. However, among taxpayers with The bill I am introducing today is to ceeding year. an adjusted gross income over $500,000, total correct a problem which has long been of For the ordinary family farm, I feel farm profits were $2 m1111on and total farm losses were $14 m1llion, a more than seven concern to me and is an implementation that these deviations from standard ac to one ratio in the other direction-that is, of one of the recommendations of the counting practices are quite reasonable. loses to profits. (Cong. Rec., pp. 2·1704-21706, Republican members of the Joint Eco However, for the high-income bracket July 17, 1968.) nomic Committee, namely, to "update "hobby farmer" or corporate farming In other words, the richer one is, the the income tax laws to protect the com operation, they are not. When a high tax worse farmer he tends to be, and if one mercial farmer against the unfair com bracket ''hobby farmer" elects to use the is very rich, apparently he cannot "farm petition which results when those whose specia.l farm accounting rules, many of at all. I think that can only be a reflec principal occupation is not farming, pur these taxpayers show farm losses which tion of the distortion created by the farm chase farms, and then write off the losses are not true economic losses. They can loss provisions of the Internal Revenue on their tax bills"-1968 Joint Economic instead be characterized as artificial tax Code, and if left unchecked, the distor Report, Senate Report No. 1016, page 105. losses. These tax losses can then be de tion can be expected to become even A recurring phenomenon across the ducted from other nonfarm income greater in the future. country is the purchase of farm property which often results in large tax savings. by business and professional people and Furthermore, these artificial tax losses ANALYSIS OF THE BILL corporations whose principal business is from limilted farming operations are The bill I am introducing today is of other than farming. The motivation be often in reality capital costs of inven fered as a suggested method of dealing hind these purchases is generally two tory costs. They often more accurately with the problem, which I hope will re fold: relaxation and enjoyment, and to represent an investment in farm assets ceive study along with some other ap take advantage of the tax provisions rela rather than amounts actually lost in the proaches which nave been and might be tive to business losses. The first motiva business. This investment quite often offered. My bill provides that a taxpayer tion is perfectly proper in itself and by will be sold and taxed at the capital who claims to be in the trade or business this bill I do not intend to curtail any gains rate. Therefore, hobby farms pre of farming must prove this fact by a one's right to buy and use his land for sent a situation where deductions are clear preponderance of the evidence if any legitimate purposes. However, the set off agains.t ordinary income to re an agent of the Internal Revenue Serv utilization of the farm loss provisions in duce the amount of taxes paid while the lice in auditing the taxpayer's return the Internal Revenue Code leads to dis taxpayer holds the fa.rm, while the sale determines that the taxpayer is not in tortions in the agricultural economy and price of the farm is taxed at a capital the business of farming and the national unintended tax benefits which it is my gains rates. office of the Internal Revenue Service on purpose to correct by this legislation. The typical situation is the hobby the petition of the agent sustains the The tax laws are distorted when used farmer who raises cattle, develops citrus agent's determination. The presumption by "hobby farmers"-as they are often groves, fruit orchards, and other similar which the bill creates that the taxpayer called-because the methods of account ventures which involve assets which re is not in the business of farming is in ing allowed to be used by real farmers quire several years to mature. The de addition to the normal presumption of are different than those required by the velopment costs are deducted in the correctness which attaches to an Internal Internal Revenue Service for most other years before the asset matures as ex Revenue Service determination. The ef businesses. There are two principal penses. After the asset matures, the en fect of denying the taxpayer's claim that methods of accounting used for report tire lot is sold, and taxed not rut ordinary he is in the trade or business of farming ing business income for tax purposes: income rates, but at capital gains rates. is to deny him any deduction for farm the "cash method" and the "accrual This is an unfair distortion of our tax losses. method." In general, those businesses laws which this bill is designed to rectify. Under the bill the national omce must which do not involve the production or It is also a distorition of the farm give the taxpayer timely notice before sale of merchandise may use the cash economy and punishes the farmer who reviewing the agent's determination. Its method. Under it, income is reported has to rely on his yearly income from review is to include both a comprehensive when received in c·ash or its equivalent, his farm to support himself and his fam study of the taxpayer's case file and, at and expenses are deducted when paid in ily. This occurs because the hobby the request of the taxpayer, at least one cash or its equivalent. farmer who competes with the real conference with him. Where the production or sale of mer faa'lller in the marketplace need not Under existing law the national office chandise is a significant factor, income make a profit-indeed a profit to the of the Internal Revenue Service gener can be properly reflected only in the costs hobby farmer may be unnecessary and ally does not review questions · of fact. of the merchandise are deducted in the sometimes even detrimental. Moreover, it reviews quest~ons of law~ accounting period in which the income The present tax provisions thus dis only at the request of a taxpayer. Under from its sale are realized. This is called tort the· farm economy by bidding up the bill, however, as I stated above, the· the "accrual method" of accounting, the price of farmland to a level far be national office review, which is.necessary and is accomplished by recording cost& yond that which would prevail in a nor to establish the additional presumption, when incurred and sales when made, and mal farm economy. This is hannful to that a taxpayer is not engaged in farm including in inventory those costs attrib the r~al farmer in the ev.ent.he may wish ing as a trade or business, is to take place utable to unsold goods on hand at the end to expand his operations and finds he only on the petition ·of the auditing' 2~880 EXTENSIONS OF REMARKS August 1, 1968 agent. Thus, unlike in the usual case, difficult to tolerate anytime, but partic noted, the growing impatience of white ularly diftlcult in light of the effects upon America with civil disorder. Sen. Joseph under the bill the agent has the burden Tydings, a Maryland Democrat, said in a of establishing the correctness of his farmers of the failures of the past 8 years speech to the National Symposium of Law determination so that the statutory pre of Government farm policies. Enforcement Science and Technology: sumption will apply. "I think that disorders are making the The presumption which the bill estab public lose confidence, making it vindic lishes does not apply in the taxable year tive and impatient. I wonder how much in which a taxpayer acquires a farming THOUGHTS ON THE KERNER time we have before the 90 per cent of the COMMISSION people who are white demand that disorders enterprise or in the succeeding taxable end." year. This gives the taxpayer an oppor Daniel P. Moynihan, the liberal student tunity for his actions to establish that HON. ROBERT H. MICHEL of Negro and urban problems, recently de he is farming as a trade or business. The OF ILLINOIS nounced expressions by national leaders which give "aid and comfort to an ever presumption under the bill applies in the IN THE HOUSE OF REPRESENTATIVES case of an individual taxpayer as well as rising tide of domestic violence." There must Thursday, August 1, 1968 be a stop to it, he said. "Violence is never a corporate taxpayer. inevitable; violence is never admissible in The bill applies with respect to tax Mr. MICHEL. Mr. Speaker, anyone this society." able years beginning after the date of reading an account of the daily news Yesterday 11 Peoria policemen and a news enactment. these days could be excused if he has the man were wounded by shotgun blasts, and The current provisions relating to impression that we apparently have a fire bombs were hurled at buildings and cars. hobby farms, sec.tion 270 of the Inter new summer sport to add to the tradi The violence began when police moved into nal Revenue Code of 1954, provides in tional summer pastimes such as swim a Negro area to halt rock throwing at passing ming, golf, baseball, tennis, and so forth. automobiles. effect that no one shall be considered a In Seattle, a sniper fire thru the roof of a legitimate farmer entitled to deduct farm I am referring, of course, to the reports of police car in a Negro area, wounding two losses if he failed to show a profit in violence coming in every day from points policemen. his farm operations in the preceding all over the country, including my own In Cleveland, three policemen were killed 5 years. This provision has been inef hometown of Peoria, where the other and 16 wounded in last week's orgy of snip fective, as experience has shown the ease night 11 policemen were wounded by ing and looting. with which a non-bona-fide farmer shotgun pellets while trying to restore "When pollee are being shot like fish 1n a could merely show a slight profit for one order. The violence in Peoria began when barrel. it's time we do something," said John of those 5 years. Consequently, my ap police moved into an area of the c:ity to Herrington of Philadelphia, national presi halt rock-throwing at passing automo dent of the 137,000-member Fraternal Order proach is to deal with the matter flexibly of Police. He said a two-day national pollee in each specific case and to place great biles. walkout had been proposed by police leaders emphasis upon the determination of the It seems to me that the so-called Ker as a protest against lack of public support. Internal Revenue agent in the field as ner Commission report has been remiss "You take Cleveland," he said. "Nobody's to whether or not the farm is operated in overlooking the growing impatience of concerned about the man lying there para with the bona fide intent to make a all Americans with civil disorder, and in lyzed with a bullet in his spine. Nobody's profit. The fact that a loss appears is not that connection, I am in agreement with concerned about three ofiicers in their graves. the views of Mr. Daniel P. Moynihan, who Nobody's concerned about their widows and fatal to allowing a tax deduction for it orphans. What they are concerned about is if the IRS agent ascertains a good-faith recently denounced expressions by na tional leaders which give "aid and com the civil rights of Evans." (Fred Ahmed intent to farm for a profit. Because great Evans is a black nationalist quoted by police emphasis is placed on the judgment of fort to an ever-rising tide of domestic as saying he led 17 men in the attack on the ms agents-who are individual violence." There must be a stop to this the pollee.) human beings-the bill adds that the practice by high officials and I add my Some of the blame for these tragedies must agent's determination shall not be effec own hearty amen to Mr. Moynihan's be shared by the Kerner commission's pro tive without the approval of the national comment that-- nouncements. The commission, we hope, will office of the ms if the agent in the field Violence is never inevitable; violence is now go out of business. Its members and never admissible in this society. staff can go back to their homes and acad should rule against the farmer in any emic communities, which are well insulated specific case. This procedure has its prec An editorial from today's edition of the from the slum conditions discussed in their edent in the ascertainment by the Inter Chicago Tribune makes some pertinent reports. nal Revenue Service of a bona-fide pen observations on this whole question and The pollee and firemen must stay on duty sion plan for tax purposes. I include the editorial in the RECORD at keeping order and putting out fires. Other bills have been introduced which this point: approach the problem in a different fash KERNER COMMISSION "Go HOME" ion which also merit close study. Senator The report of the Kerner commission on Lee Metcalf has introduced S. 2613 in civil disorders, issued last Feb. 29, blamed HON. HERBERT B. SCUDDER the Senate--CONGRESSIONAL RECORD, VOl almost everybody but the rioters. Now the ume 113, part 23, page 30102. My col commission has issued supplementary league on the Joint Economic Committee. studies which purport to show that a ma HON. W. R. HULL, JR. Senator JACK MILLER, of Iowa, offered an jority of Negroes think that riots are justi OF MISSOURI fied as a form of social protest. IN THE HOUSE OF REPRESENTATIVES amendment to the Metcalf bill, S. 3443 If this conclusion is correct, it is a shocker, on May 7, 1968-CoNGRESSIONAL RECORD, for it has been generally believed that the Tuesday, July 30, 1968 pages 12006-12007. In addition, the In vast majority of Negroes deplore violence Mr. HULL. Mr. Speaker, it is with a ternal Revenue Service is expected to as much as most white people. Have the com offer its suggestions to the Congress in mission's researchers really determined that heavy heart that I note the passing of the near future which in general are a majority of Negroes think that murder. ar my friend and former colleague, the expected to take the form of providing a son, and looting wlll bu1ld a better society? Honorable Herbert B. Scudder of the ceiling on the amount of nonfarm in We doubt it. Surely a majority of Negroes First District of California. ' know that every riot, every instance of vio When I was first elected to Congress ~ome which could be offset by farm losses lence, makes whites less sympathetic toward and was assigned to the Public Works in any one year. If there were excesses the needs and aspirations of black people. from farm losses. they could ioe carried Surely a majority of Negroes know that Ne Committee, Herbert Scudder was an in forward or backward to otfset farm in groes are the principal sufferers in the big fluential member of that committee and come. but no other income. in other riots. although we sat on different sides of the years. The Kerner commission, in its main re aisle, he was helpful to me in my work port, caused great harm to the cause of racial on the committee. The farm tax loss problem needs study peace by its insistence that "white racism" From the day I met hlm, I found and attention by the Congress. It rep was responsible for all misbehavior by Ne Herbert Scudder to be kind, courteous, resents a loophole in our tax laws which groes. Now the commission compounds its and sincere. His work in behalf of his is unfair to all Americans not in a posi evil with a report that encourages further violence by tell1ng rioters that a majoJ,"ity constitutents and the Nation will be long tion to take advantage of it. It also rep of their people are behind them. remembered and I join with my other ~:esents to the legitimate American The commission would have been better colleagues in expressing my deepest: tarwer unfair ,. competition; somethhig· advised 1f it" had emphasized, or at least sympathy to his family. August 1, 1968 EXTENSIONS OF REMARKS 24881 TESTIMONY BY PRESIDENT OF U.S. It's a sad fact that we cannot hope to achieve We must restore an equilibrium which can CHAMBER BEFORE RESOLUTIONS our goals until we straighten out the imbal be sustained without controls, and without COMMITrEE ances of our economy. other devices which obscure a disequiLibrium. Our competitive political process is an in The National Chamber recommends that herent part of our competitive economic the government undertake objective and far HON. GEORGE W. ANDREWS system. There is much it can do to keep the ranging studies of what its options may be system virile, strong and responsive to our in achieving equilibrium, while at the same OF ALABAMA needs. It can provide a favorable climate for time avoiding further controls in the future. IN THE HOUSE OF REPRESENTATIVES job-making, for taxpaying, and for business We consider it imperative that the Repub Thursday, August 1, 1968 operations that are geared for progress lican Party reaffirm its historic stand on the progress for our country, for our people, and economic benefits of freer trade. Consistent Mr. ANDREWS of Alabama. Mr. for the communities in which we all live. with the basic position of the need for a Speaker, on Tuesday, July 30, Mr. Winton free-functioning market place, we hope that STATEMENT DIRECTED SPECIFICALLY TO THE your platform will clearly state that, in the M. Blount, president of the Chamber of SUBCOMMITTEE ON ECONOMIC AFFAIRS Commerce of the United States, pre interest of free enterprise, artificial restraints In the field of fiscal and monetary policy, on trade, on travel and on investments will sented the following statements before with which your subcommittee is concerned, be avoided. four subcommittees of the Republican we in the business community show greatest resolutions committee of the Republican concern over 1nfiation, rising taxes and ex STATEMENT DIRECTED SPECIFICALLY TO THE National Convention. cessive government spending. SUBCOMMITTEE ON HUMAN NEEDS As I felt Mr. Blount's testimony would Inflation hurts everybody, most of all the The field of human needs, with which your poor. It also weakens the competitive posi subcommittee is concerned, offers bOith the be of particular interest to all readers of tion of our products in world markets. greatest challenge and maximum opportu the RECORD, I am privileged to insert A primary cause of infiation is federal nity for imaginative, effective and long-last these remarks herewith: deficit spending. This is evident from what ing solutions to our problems. STATEMENTS BEFORE THE REPUBLICAN has happened to the purchasing power of One of the most desired of human needs is RESOLUTIONS COMMITTEE the dollar since 1950. In the past 18 years the adequate housing. (By Winton M. Blount, President, Chamber Federal Government has had only four years The National Chamber supports giving en of Commerce of the United States before of balanced budget-and the value of the couragement to home ownership by families the following subcommittees of the resolu dollar has dropped to 70 cents. of modest means. We support improving the The more than $25 billion deficit, which climate for business action to help meet the tions committee of the Republic National people's needs. We support reorienting fed Convention: Subcommittee on economic is estimated for the fiscal year just ended, eral programs to provide a systematic ap affairs, subcommittee on human needs, has been the principal force behind our in creasing rate of inflation. It has risen from proach to solving housing problems. subcommittee on private enterprise and Government efforts can best be aimed at the Federal Government, and subcom a tolerable 17'2 per cent to more than four per cent a year. This accelerated inflation attacking the main cause of inadequatte mittee on National, State and local rela housing. That is why we support the Percy tions, at Miami, Fla., July 30, 1968) is jeopardizing the nation's ab111ty to do as much as it otherwise might to fight pov home ownership plan and allied approaches INTRODUCTION erty and to attack community problems. for government assistance to stimulate hous Let me first express my appreciation for Excessive taxation has the same stifiing ing improvement for families of modest your invitation to present the National effect on economic growth as inflation. To re means. Chamber's views on the major issues of the lieve the inflationary pressures, the National There's much talk about a guaranteed in day. Chamber gave its support to the new 10 per come, or negative income tax plan, to cope Our national federation speaks for more cent tax surcharge, coupled with a $6 billion with the poverty situation. It would take the than 3,700 local and state chambers of com reduction in federal expenditures. However, place of the existing batch of welfare pro merce and trade and professional associa we urge that the surtax be removed as soon grams which haven't worked. More than 30 tions, and 33,000 business firms. The more as the present monetary-fiscal crisis is over years of federal experimentation have estab than 5,000,000 business and professional men and the surtax is no longer needed. Fiscal lished welfare a.s a way of life for many and women which these organizations repre responsibility can hasten that day. families. sent are deeply concerned with the require We recommend, therefore, as a matter of Certainly what we need is some built-in ments for healthy economic growth on which national urgency, that your platform contain incentive for poor people to get off welfare. our social and material progress depend. a commitment to move toward achieving a Because of the importance of the incentive Your deliberations come at a time of justi federal budget surplus as early as possible, factors, any move toward a guaranteed in fiable concern among our people and our hopefully in fiscal 1970. Times of high busi come should be taken only with extreme cau friends around the world. We are concerned ness activity such as we have today offer the tion. Our entire welfare system needs to be about how our great country will cope with best opportunity for substantial progress re-examined. the many difficulties that confront us both toward that end. We need to find a new approach. But we at home and abroad. We are concerned about The tax increase-expenditure limitation need to experiment and not rush headlong the kind of leadership we will give, or the package is a crucial step toward getting our into another catch phrase type of program example we will set. financial affairs in order. But it is only a first without first proving its workability. It is worthy of note that our problems at step. Something must be done about govern Community needs parallel human needs. home really stem from success, not defeat. ment policies which allow spending to ex Progress on one helps meet the other. There Our basic problem is how we can live with ceed our capacity to produce. They encour is a growing need today for more participa or how we can manage--our prosperity . . . age pay increases tha-t are far in excess of tion by all segments of the society in work gains in productivity, lead to price increases, ing together toward improving our urban how we can maintain healthy economic and the inflationary spiral is on. communities. We have seen the failures that growth with benefits more widely earned and result from fragmentation and relying too shared, especially by the disadvantaged. We must reverse the direction of national policy if infia tion is to be controlled. All heavily on the Federal Government. There must be the means-and the will-to of us, including the government, must rec We urge a strong pilank in your party keep providing the opportunities for a better ognize that social objectives worth having platform calling for greater participation life for a still larger percentage of our grow are worth paying for. by all groups in the community and suggest ing population. The only means available, We need to set priorities. We can't achieve ing how this might be done by joint, co short of changing our form of government, all of our objectives at once. We need to operative action at the loc,al, area and state is the free market economy. As you know, it evaluate our objectives and the programs de levels. We commend to your attention, as has brought to our people the highest stand signed to meet them in the light of current a model, a process for Mobilizing Total Com ard of living in the history of the world. needs. We need to match commitments with munity Resources, which the National Political parties-whose product is govern available resources. Chamber is making available to communities ment-play an important role in helping Thus, we Tecommend that your party sup thi'ough their local chambers of commerce. private business generate the economic activ port the creation of an objective, bipartisan The great haste 'With which the Congress ity that is necessary to maintain stable commission to provide a comprehensive re has been called upon to enact legislation growth and prosper!ty. evaluation of federal spending priorities. dealing with the crucial problems of our Central government can be stifiing when it With respect to international trade, con ti-mes has resUlted inevitably in duplication. engages in massive intervention in the econ trols on · investments abroad imposed last This too easHy breeds m!smanagement and omy and in our private lives. January represent another in a series of waste. On the other hand, it can also be an measures which deal with our balance-of Federal grant-in-a-id programs are a classic effective force for progress. It can stimulate payments problem in a fragmented fashion. example of uncontrolled project growth. Four individual initiative. It can foster a political The controls address themselves to symp years ago there were 239 grant programs. climate conducive to private investment. toms ra-ther than to causes of the malfunc Today there are more than 400. The Ad This will help provide our growing popula tioning of our international monetary sys ministration has predicted that they wlll tion with more and better goods, services and tem. They also run counter to our declared quadruple in :flve years, when the cost is jobs. It will help provide the means for at liberal trade and payments goals, and there eJq>ected to increase to $60 billion from the tacking many of our critical urban problems. fore should be lifted as soon as possible. current $18 blll1on a year. 24882 EXTENSIONS OF REMARKS August 1, 1968 As one pa.rt of the sol~t1on, and to allow The growing imbalance in labor-manage own free Will whether or not he will join communities more fl.exib111ty and the op ment relations has led to uneconomic wage a union. No free individual should ever be portunity to make more effective use of settlements which jeopardize price stability. forced to join, or give financial support to a funds, the National Chamber urges that the It has also accelerated the decline in our union or any other organization, in order grants to communities be block grants. international monetary position. to get or hold a job. There should be no qual An objective review of overall federal We're confronted today with an inflation ification of the fundamental right to join operations is also urgently needed. We urge ary situation-a vicious circle of unions or not to join a labor organization. Both that your party platform call for the estab forcing major industries to raise wages about should have equal protection of the law. lishment of a bipartisan, blue-ribbon com tWice as much as the increase in productivity. STATEMENT DIRECTED SPECIFICALLY TO THE missl1on, patterned along the lines of the The result is that unit labor costs have risen SUBCOMMITTEE ON NATIONAL STATE, AND former Hoover Commission, to help deter to a record high level and, consequently, so LOCAL RELATIONS mine whioh federal programs should be has the cost of living. merged, modified or discontinued. We need Employers must be assured of the right to A matter of utmost concern in this elec to establish relative priorities that permit manage their businesses as efficiently as pos tion year is our anachronistic Electoral the conduct of essential programs within sible so that increased productivity might College procedure. Already there's specula financial bounds that do not jeopardize our allow wages to rise without forcing up prices. tion that a deadlock of the electors may economic secUrity. This is how we improve our standard of throw the election of a President into the The national issue of most emotional and living. House of Representatives. This raises the cr.i tical concern this yea,r is the problem of Legal restrictions against secondary boy possibllity that a candidate With less than a riots and looting, and rightfully so. Mob cotts, which victimize neutral employers and mere plurality of the vote could be selected. action is a tolerated instrument for political, their employees alike, must be tightened. The National Chamber urges that your social and economic change has emerged as We need to close loopholes in present laws, party platform pledge to guard against the a new phenomenon in our society. It is not open up new ones. future threat of such an undesirable develop tolerated for political reasons and in the The imbalance in management's relations ment in the world's greatest democracy. name of social progress. Many misguided in with unions is nurtured by a combination of We urge th1968 LEGISLATIVE QUESTIONNAIRE
Yes No Undecided Question Total response Number Percent Number Percent Number Percent
FOREIGN AFFAIRS-VIETNAM 1. Do you approve of the way President Johnson is handling the Vietnam question? ___ ------31,425 11,515 36.64 17,017 54.15 2,893 9.21 2. Do you support the bombrng halt north of the 19th parallel as a means of beginnin~ ne~otiations7 _ 31,091 18,304 58.87 11,274 36.26 1, 513 4.87 3. Would you support a negotiated settlement in Vietnam which provides for particrpatron by the National liberation Front (Vietcong) in a coalition government?------31,134 16,799 53.96 11,397 36.61 2,938 9.43 4. If a "satisfactory" solution of the Vietnam problem is found, would you support continued U.S. economic assistance in Southeast Asia?------31,236 18,993 60.80 8,672 27.76 3, 571 11.4 FOREIGN AFFAIRS 5. Do you support an expanded U.S. program to help willing underdeveloped countries implement brrth control programs and increase agricultural output to meet the imminent threat of a world food shortage? ______------______------_------_____ ------31,126 25,116 80.69 4,965 15.95 1, 045 3.36 6. If Soviet arms aid to the Arab States continues, should the United States make needed weapons available to Israel? ______------____ _ 31,338 20,067 64.04 8,008 25.55 3,263 10.41 7. Would you support Israel's refusal to withdraw her troops until she has firm guarantees of her sovereignty and access to all waterways? ____ ------30,985 24,384 78.70 4,531 14.62 2, 070 6.6 CIVIL RIGHTS 8. Do you approve of the Civil Rights Enforcement Act of 1968 which provides criminal penalties for interference with certain federally protected rights, including the right to vote, obtain an education, obtain and hold a job?------30,960 26,703 86.25 3,010 9. 72 1,247 4.03 9. Do you approve of the open housing provisions of this act?------31,600 17,927 56.74 10,897 34.48 2, 776 8. 78 NARCOTICS AND CRIME 10. Do you favor increasing Federal penalties to make the manufacture and sale of LSD and other hallucinogenic drugs a felony and their possession a misdemeanor?------31,248 24,870 79.59 4,247 13.59 2,131 6.82 11. Do you favor Federal legislation to ban interstate mail-order shipments and foreign imports of guns? __ 31, 02& 24,432 78.75 5,642 18.18 952 3.08 12. Do you favor increased Federal matching funds for local law-enforcement agencies under the terms of the Law Enforcement and Crimina !Justice Assistance Act passed by the House in 19677 ______30,603 18,465 60.34 6,267 20.48 5,871 19.18 MILITARY DRAFT 13. Do you favor revision of the Selective Service System by establishing uniform requirements tor all draft boards throughout the Nation? ______------______31,003 25,951 83.71 3,126 10.08 1,926 6. 21 14. Do you favor a selective service system based on random selection from a pool made up of all nondeterred 19· to 26-year-olds, including graduate students7 ______30,308 17,307 57.10 9,768 32.23 3,233 10.67 THE ECONOMY 15. Do you favor a $2,000,000,000 program to provide on-the-job training for the unemployed and the underemployed? ______31,180 19,725 63.26 8,279 26.55 3,176 10.19 16. Would enacting a tax increase on individual and corporate incomes help to improve the economic health of the Nation? ___ ------______------______------30,803 12,618 40.96 14,221 46.17 3,964 12.87 17. Do you favor wage and price controls as a means of combatin~ inflation?------32,844 14,754 44.92 13,945 42.45 4,145 12.62 18. If there should be a reduction of spending before a consideratron of a tax increase, in which areas should they be made? 1. Foreign aid ______10,883 5. Farm subsidies ______4,230 2. Military ______9,801 6. Public works ______2,871 (a) Vietnam______2, 621 7. Federal spending______1, 997 3. Welfare______7, 274 8. Roads______1, 540 4. Space______7, 169 CONSUMERS 19. Do you favor Federal legislation to protect the consumer regarding the quality of meat, fish, and 31,869 27,922 87.62 2,752 8.63 1,195 3.75 20. ot;~~t7e~; "iii iii ihe -ciisiriiliitiori oi -traC!iiig-stamps silo-urii-lle-pro"h-li>ife-ci ily- F"eileriii iaw7: ::::::::: 31,108 11,761 37.81 15,641 50.28 3, 706 11.91 ELECTIONS 21. Do you favor an amendment to the U.S. Constitution allowing 18-year-olds to vote? ______30,167 13,193 43.73_ 15,030 49.82 1,944 6.45 22. Shthu~dp~~ld~~~ri~ e~~~~:fi~~entl ~-~~-b_o!~~~~ -t~ _~~~~~~ ~~~~~ ~~ -~-s_t_~h_e!~ -~~~~~~- ~~r-~~_Y- ~~~ _ 31,556 23,612 74.83 5,360 16.98 2,584 8.19 23. Should the State legislatures be permitted to reapportion congressional districts more than once during a decennial census? ______------__ ------_ •• -----··-··· 31,378 10,914 34.78 14,256 45.44 6,208 19.78
OXIV--1568--Part 19 24886 EXTENSIONS OF REMARKS August 1, 1968 PROMISE AND PERFORMANCE ners thrive in this atmosphere---and so do voting, but organizing to campaign and taxes. to get votes. This means that the citizens Returning to the 10% surtax legislation, collectively must engage in the process HON. JAMES -B. UTT America. can probably survive the $10 bilUon of financing campaigns. If they don't a OJ' CALIFORNIA financial jolt, but it may never recover from the parliamentary procedure which produced great evil of having the Government IN THE HOUSE OF REPRESENTATIVES that legislation in complete contravention of itself through tax money finance cam Thursday, August 1, 1968 the Constitution of the United States, which paigns will come about. I think there is provides that all tax matters shall originate already too much power in the hands of Mr. UTT. Mr. Speaker, I ask unanimous in the House of Representatives. This legis incumbent office holders to get reelected consent to include in the Extensions of lation was written in a Joint Conference and preserve their status quo without Remarks the newsletter I am sending Committee, consisting of five members of the putting further power in their hands today to my constituents. The report Ways and Means Committee and five mem which financing their election cam follows: bers of the Senate Finance Committee. It paigns with taxpayers' money could do. As this report is being written, Congress did not have the benefit of hearings before The second area is equally important is preparing for a 30-day recess during the the Ways and Means Committee, nor the period of the National Conventions. Con advantage of the wisdom of the full Commit and equally difilcult to establish guide gress wm convene again right after Labor tee. Normally, the product of a Conference lines. It relates to conflict of interests of Day, for a few weeks, to complete 'Unfinished Committee would return to the Committee of the elected Representative. Some people legislation. origin for further consideration. This was by in their desire to eliminate all conflict of By the time you receive this, most of passed by sending it to the Rules Commit interests on the part of their legislators you will have felt the first effect of the 10% tee, and from Rules to the Floor for one have lost sight of the theory of repre surtax, either by way of a payroll deduction, hour of debate, without amendments. The sentative government, at least as it has an increased estimate, or indirectly as your bill also included matters within the juris been developed in our society to date; co~pa.ny has had to pick up the tab from dihould be no hesitation, symposia, each dealing with a highly con attacks. Every city in the land wlll become however, about using deadly weapons 1f the troversial problem of urgent national con another Algiers-worse than Algiers, in fact, Guardsmen are fired on from a distance cern. Of these ten symposia, this is the because the Algerians did not resort to beyond the range of "Mace." third having to do with crime. The extent of Strong medicine? Assuredly, but that is our concern with this cancerous problem is burning. God forbid. The message comes through loud and clear exactly what 1s needed. Consider what has demonstrated by that fact. My own belief is happened in city after city across the country. that the rising incidence of crime is our to all who do not close their ears: Disarm. Rioters should be disarmed forcibly-and it Fires are set and the firemen who respond country's number one domestic problem. are attacked with rocks and bottles--even It is all to easy to ascribe this ugly phe can be done. But th.at is only a beginning. fired upon. More and more the rioters are nomenon to the ugly phenomena of poverty All possible pressure must be brought to bear for effective weapons-control legislation-na armed with shotguns, rifies, and other deadly and unemployment among Negroes. The fact weapons. Motorists in peaceful neighbor is that crime is increasing more rapidly in tional, state and local. hoods are fired upon from passing cars. The well-to-do neighborhoods than in the colored The fine record of young Negroes in Vlet pollee are shot at. Looting is growing in areas sections of our cities;1 and, referring to "[t]he Nam indicates that they have as much to outside the riot core. Who is safe, either in typical rioter in the summer of 1967," the contribute to th.ls nation's welfare as their his person or in his property? Are not the National Advisory Commission on Civil Dis white counterparts. How to bring this prom citizens, black as well as white, entitled to order found: Economically his position was ise to fruition ls a question of utmost com protection from these increasing outbursts about the same as his Negro neighbors who plexity, whose answer I think no man fully of mass violence? 111 understands. Whatever the remedy or reme did not actively participate in the riot." 2 Milder measures have been tried for jour As for the riots, that plague of the 1960's, dies may be, however, one thing ls sure: no years, but the riots spread, ana the violence the first thing to say is that every effort remedy can be applied until the rule of law increases. It is time and past time fo,r tough should be made to prevent them.3 Once a has been recognized and order has been re tactics.13 To repeat, strong medicine 1s ex riot has started, however, it is the obligation stored. That can be accompanied only by actly what is needed. Needed or not, many of the authorities to stop it. As President the prompt and courageous use of effective will be horrified by my suggestion that armed Eisenhower has said: measures. But it can be accomplished; and persons in a riot area, who disregard the cur "These riots are a growing danger to our those city and state officials who fall to ac few, refuse to surrender their weapons or nation and must be handled without temp complish it should be held responsible by turn them on the police or Guardsmen their constituents. orizing. When the police cannot cope with should be shot. To those who find this ~ the situation, there should be no hesitancy How can it be accomplished? How can a shocking suggestion I put this question: Is in calling out the National Guard. And the riot be stopped within 24 hours-less than a is not better to ktll some malefactors than culprits, when their guilt is clear, must be quarter of the time span of virtually all the to allow them to kUl innocent persons? dealt with as any other criminals, regard riots of the last few years? Assuming that That question will not stop those who are less of their race or their grievances against the mayor and the governor cooperate and horrified by my suggestions. Regardless of the society. People simply must be taught that that they are willing to use strong medicine, evidence to the contrary, they will insist that personal or social problems cannot be solved it can be done as follows. In the first place, Harlem, Watts, and subsequent violent epi by violence and defiance of authority."' the National Guard should be mobilized im sodes were the product of a sense of in There is no excuse for a riot that lasts mediately, that is to say, as soon as it is justice. Even if that were true, even if a riot for four or five days with the attendant in plain that a serious riot is in progress.7 And {whether by wht.tes or blacks) were churned juries, loss of life, and damage to property. the rule should be better too soon than too up by a deep feeling of outraged justice, there A riot can be stopped before it :fs twenty la.te.8 Moreover, someone other than the po would still be a moral as well as a legal ob jour hours olct and should be. Law and order lice should decide the question, for the pollee ligation to use effective measures to protect are a precondition of civ111zed society. will hesitate to admit they can't handle the the community. The "community" is not just Please note that what I have said has to do situation. What I have said doesn't mean an abstraction but an aggregation of people, only with riots-not with peaceful demon that some Guardsmen should be sent to the people whose rights as inctivictuals are just as stmtions. The march on Selma, the march on scene, or that all Guardsmen should be sacred as the rights of those few individuals Washington-these were peaceful demonstra alerted. It means that an adequate number who resort to violence. Why is it so hard for tions inspired by a deep conviction or in of Guardsmen should be mobilized and dis some persons to understand this? justice. In no sense could they be character patched to the riot area at once. And, again, When a lone sniper is surrounded and shot ized as riots. On the other hand, none of the the rule should be better too many than too down, nobody is outraged. In a. riot there are riots in recent years was the product of a few.'~ many snipers. And every person bearing arins sense of injustice, as the Selma and Wash As soon as the Guardsmen arrive, the riot in the riot zone is a potential sniper. So, I ington demonstrations were. area (that is, the area where the rioting is submit, the real question 1s: Whom should Some will disagree, of course, and point to taking pl&ce and/or from which bands of we protect? The snipers and those who beat Harlem, Watts, and other Violent episodes. marauders erupt to carry the rioting to other and k111 and burn and loot-or their victims? They were not race riots, they were youth areas until resistance drives them back to Cities and neighborhood~ differ from one r1ots.5 Those who challenge that assertion wlll the riot core)-the riot area, to repeat, another to a greater or lesser extent. Thus I have to explain the riots by young white should be sealed off absolutely and no one recognize that modifications of the plan of people in Oregon, New Hampshire, Florida, permitted in or out except the Guardsmen operations I have outlined briefly might, al themselves and emergency vehicles, such as most certainly would be called for in some Footnotes at end of art1cle. ambulances, convoyed by Guardsmen. instances. - August 1, 1968 EXTENSIONS OF REMARKS 24889 One final thought. A woman whose hus trol: "The use of force or the imposition of PROMOTE SMALL BUSINESS band or son has been kllled, the owner of a confinement which is intended or likely to EXPORTS property whose premises have been burned cause death or serious bodily harm for the down, a merchant whose store has been purpose of suppressing a riot or preventing looted-why are they not entitled to com the other from participating in it is privi HON. JAMES H. SCHEUER pensation from the municlpa.lity and/or leged if the riot is one which threatens death OF NEW YORK state which could have protected them, but or serious bodily harm." Restatement (Sec was too timid to do so? The city solicitors, ond) of Torts § 142(2) (1965). The commen IN THE HOUSE OF REPRESENTATIVES corporation counsel (or whatever else they tary on this section clarifies this permissible Thursday. August 1. 1968 may be called) would do well, I suggest, to use of force. start preparing whatever defense they may "If the riot itself threatens death or serious Mr. SCHEUER. Mr. Speaker, today think they have against the damage suits bodily harm, it is sufficiently serious to justi I am introducing a bill that will assist that are bound to be filed and are being fy the use of deadly means to suppress it. It is our balance of payments and further filed.14 not necessary that the avowed purpose of the strengthen our economy by promoting FOOTNOTES riot be to inflict such harm. It is enough export or products, services, and pro *In this paper I s·peak neither for the that the conduct of the rioters is such as to create the probability or even the possibility cesses of small businessmen. This blll University of Notre Dame nor for the Notre will establish tax incentives to encourage Dame Law School but only for myself. of such consequences." Restatement (Sec ond) of Torts, Comments § 142, comment g, small businessmen to set up small busi "'* Dean, Notre Dame Law School. 1 at 257 (1965). ness export trade corporations. Mr. See FBI, Uniform Crime Reports for the 14 United States-1966, tables 6-7, at 92-94 The Supreme Court has spoken to this HARTKE has introduced an identical bill (1967) (shows a higher rate of crime increase point of public liab111ty for riot damage, a.s in the Senate. This measure will allow in suburban areas than in major cities). follows: us to tap the resources of nearly 250,000 "The State 1s the creator of subordinate 2 small businesses which are currently Report of the National Advisory Commis municipal governments. It vests in them the sion on Civil Disorders 128 (Bantam ed. police powers essential to the preservation of ignoring export opportunities. 1968). law and order. It imposes upon them the At the present time our balance of aId. at 2. duty of protecting property situated within trade is badly in need of a shot in the 4 Reader's Digest, Aug., 1967, at 70. their limits from the violence of such public arm. We have traditionally depended 5 Referring to the riots of 1967, the Na breaches of the peace as are mobs and riots. upon a large trade surplus to balance tional Advisory Commission found that "The This duty and obligation thus entrusted to our international accounts. But this vital typical rioter in the summer of 1967 was a the local subordinate government is by this Negro, unmarried male between the ages of surplus has recently disappeared. The enactment emphasized and enforced by im 5 15 and 24 ...•" supra note 2, at 128 (em posing upon the local community absolute average monthly surplus for the first phasis added). liability for property losses resulting from months of this year was only $81 million John P. Spiegel, Director of the Lemberg the violence of such public tumults. while 4 years ago the comparable figure Center for the Study of Violence at Brandeis "The policy of imposing liability upon a w.as $584 million. And we experienced University, commenting on recent disorders, civil subdivision of government exercising trade deficits in March, May and June. said: "Kids, often very young kids-I call it delegated police power is fammar to every There are only two ways in which a 'youth phenomena'-started the trouble and student of the common law. We find it rec manufacturer can become involved in then if the adults joined, it was because they ognized in the beginning of the police sys export trade. One is to establish an ex gave in to the temptation of looting. After tem of Anglo-Saxon people. Thus, "The Hun all, they liked a colored television set as much dred," a very early form of civil subdivision, port department, at a cost which is pro as anyone." South Bend Tribune, April 10, was held answerable for robberies committed hibitive to the small business man. The 1968 at 12, cols. 5-6. within the division. By a series of statutes, other alternative is to employ a com 6 See Moore, Anarchy on the Campus: The beginning possibly in 1285, in the statutes of bination export-management firm which Rebels ... and the Law, The Police Chief, Winchester, 13 Edw. I, c.l, coming on down to will assist several noncompeting firms April, 1965, at 10. the 27th Elizabeth, c.l3, the Riot Act of with promoting their goods and services 7 Orlando Wilson, one of the nation's lead George I ( 1 Geo. I, St. 2) and Act of 8 George abroad. At the present time, 5,000 firms ing criminologists, has said: "There is no II, c.16, we may find a continuous recogni are serviced by these combination ex substitute for force in quelling civil disturb tion of the principle that a civil subdivision port-management firms, and they ac ances, and if the pol1ce are unable to provide entrusted With the duty of protecting prop the manpower to restore normalcy, then there erty in its midst and with police power to dis count for about $500 million, or 4 per is no al·ternative but to put in a call for the charge the function, may be made answer cent of all of the U.S. exports. Obviously National Guard-and as quickly as possible.' able not only for negligence affirmatively it would greatly assist our trade balance This is my view in a nutshell." Wilson, Civil shown, but absolutely as not having afforded if we could encourage a large percentage Disturbances and the Rule of Law, 58 J. Crim. a protection adequate to the obligation." of the 250,000 manufacturers which are L.C. & P.S. 157 (1967). Chicago v. Sturges, 222 U.S. 313, 323 (1911) not now exporting goods to make use of s See House Comm. on Armed Services of (emphasis added). these services. This bill is designed to do the Special Subcomm. to Inquire into the A majority of the relatively small number that by providing him with tax incen Capability of the National Guard to Cope of cases appear to be contra. But Chicago v. tives. With Civil Disturbances, 9oth Cong., 1st Sess., Sturges never has been overruled or quali 5652 (Dec. 18, 1967) (recommending the judi fied. See also County of Allegheny v. Gibson, Specifically, this legislation would au cious early commitment of adequate National 90 Penn. St. 397, 35 American 670 (1879). thorize the Small Business Administra Guard forces). These two cases, especially the latter, sketch tion to issue certificates of eligibility to 9 See text accompanying notes 7-8 supra. the historical background of the legislative corporations organized under State law 10 See text accompanying note 11 infra. enactments about to be mentioned. for the primary purpose of promoting 11 South Bend Tribune, Jan. 7, 1968, at 25, Nearly half of the states have statutes im the interests of American businesses col. 3. posing Uability or government subsidies for riot damage. Most of these are collected in abroad. The corporations must be certi 12 Consider the words of a young Negro fied by the Small Business Administra Marine, wounded in Viet Nam, flying back Note, Riot Insurance, 77 YALE L.J. 541, 552 n. 75 (1968). Another relevant statute is: W. tion, and meet three requirements. Detroit only to learn of the riot in progress to VA. ConE § 61-6-12 (1966). It goes without First, the corporation must have a there: saying, of course, that these enactments are paid-in capital and surplus of not less "This is my first time home in almost two not uniform in their provisions. The e~tent than $100,000. years and look what the hell I come home to. and conditions of liability vary considerably. I just hope nobody hurt my family. They live Second, no single client manufacturer ·on the West Side. I heard it was pretty bad can own or control more than 20 per there. cent of the corporation. "It's not like that in Vietnam. I'm a Ma Third, there must be a minimum of rine. You know, Marines have a thing: I THE "PUEBLO": HOW LONG, MR. five small businesses in each corpora take care of the next guy, he takes care of me. PRESIDENT? tion. It's beautiful. ... The following tax incentives will be "I was in pre-med school before I went into available to the Small Business Export the Marines. My mother's a pediatrician. I wanted to be a pediatrician. But when I get HON. WILLIAM J. SCHERLE Trade Corporations-SBETC: out, I'm going to be a cop. I left my applica OF IOWA First, while gains of sale or exchange tion in Los Angeles .... Boy I sure hope they IN THE HOUSE OF REPRESENTATIVES of stock would-be treated as capital gains, didn't hurt my fami~y. I don't care who it is, losses of sale or exchange of stock would I'll fight to save my family." South Bend Thursday, August 1, 1968 be treated as ordinary losses. Tribune, July 251, 1967, at 8. Mr. SCHERLE. Mr. Speaker, this is Second, up to an income ceiling of 13 The Restatement (Second) of Torts says the 192d day the U.S.S. Pueblo and her $250,000 the equivalent of a 14-percent of the tactics that may be used in riot con- crew have been in North Korean hands. tax rate reduction will be granted to the 24890 EXTENSIONS OF REMARKS August 1, 1968 Small Business Export Trade Corpora state and Foreign Commerce Committee FDA hearings cannot solve the main prob_ tion. Income earned from the perform requested a report from the Department lem over food supplement regulations because ance of export trade contracts with of Health, Education, and Welfare on FDA believes, quite justifiably, they are un in 11837, der a legislative mandate from Congress to GATT countries and income earned H.R. my bill to curb the Food and consider a fOOd legally as a drug 1f any hea.lth GATT countries by SBETC's would con Drug Administration's power to reg claims are made for it. Congress gave this tinue to be taxed at ordinary corporation ulate food supplements, including vita medically oriented mandate to FDA in 1938 rates. The 14-percent tax incentive mins. when the food supplement industry was a would be denied to any firm which in No report nas been forthcoming from baby. Thirty years ago, the idea of using the present tax year, or for either of the the Department during this year and food concentrates or supplements to prevent two preceding taxable years, received 50 my repeated efforts to determine when or cure a disease was not Widely researched. percent or more of its income from the Adelle Davis, Linda Clark, Carlton Fredericks, the report would be submitted have been catherine Elwood, J, I. and Bob Rodale had performance of a single export trade con met with nothing but evasive and surly not published their books and magazines tmct or of two or more export trade response. which contained revolutionary new concepts contracts entered into with the same This, despite the fact that to date my in do-it-yourself nutrition. person. bill has received overwhelming bi In 1941, FDA completed ex.tensive hearings Third, a deferral of up to $50,000 of the partisan support as evidenced by the fact on food supplements, and issued regulations tax consequences of an equity acquired that 72 Members of the House and 10 to govern their labeling claims. The FDA's in a foreign business, incident to the per Members of the Senate, representing 30 1941 regulations contained a definition of formance of an export trade contract, is food supplements which is almost impossible of our 50 States, have either cospon to improve on today. Now FDA wants to cut permitted when the equity is acquired in sored or introduced identical measures. out the two most important words in the exchange for patent rights, processes, Now FDA has started a new stall. They definition-"pathological" and "diseases." formulas, franchises, or other like prop began public hearings in May on the food This excellent definition is the major part of erty. This bill provides that at the time supplement order in an apparent effort Hosmer's b111, H.R. 11837. It says that food the equity is disposed of, the proceeds to divert the attention of both Congress supplements may be used for "pathological" will be treated as ordinary income. By and the public from my legislation. and "disease" conditions if these conditions this provision deferral is afforded to both exist because of a "particular dietary need." In the July-August 1968 issue of the FDA wants the two words, "pathological" and the SBETC and the small business man National Health Federation Bulletin, Mr. "diseases," cut from their own definition ufacturer with whom it has the export Clinton Miller, NHF legislative advocate, which has been unchanged since 1941. This trade contract. takes a close look at these hearings, the is a major change in the FDA's Order and Fourth, a deferral of items of income reasons behind them and the strong need one which NHF's Attorney, Charles Orlando which are blocked by repatriation laws not to allow FDA to sidetrack this legis Pratt, has objected to and wm strongly ob of a foreign country is permitted until ject to in the FDA's hearings. If Congress lation to curb the Food Supplement passes the Hosmer bill, FDA then couldn't such time as the income can be, or is Order. change the definition because only Congress permitted to be, repatriated. By this pro- . The following is the text of Mr. Mil can change its own laws. But an equally im vision deferral is afforded to both the ler's remarks: portant thing Congress can do 1f it passes the SBETC and the small business manu FDA'S HEARINGS ON FOOD SUPPLEMENTS EM Hosmer bill is to write new legislative history facturer with whom it has the export PHASIZE URGENT NEED FOR HOSMER BILL which Will say that it doesn't ever want a. contract but no deferral is permitted to food supplement to be considered a drug just items of income derived from the sale of (By Clinton R. Miller) because true health claims are made for it. After six yea.rs, public hearings have finally Congressmen who say they will wait for the exported products. started on the Food and Drug Administra FDA hearings to end before changing the Fifth, an SBETC is permitted a fast tion's food supplement Order. The govern old law of 1938 just do not yet understand write-off of up to $50,000 in bad debts ment has waited since June, 1962 to start that their own law, which has been un per export trade contract. agency hearings. That is when they first is amended or unchanged on this point since Sixth, certified SBETC's are exempted sued their sweeping proposals which would 1938, makes it impossible for a food supple from the personal holding company pro put most food supplement potencies and ment manufacturer to sell a food supple visions of the Internal Revenue Code un combinations on prescription. ment With a truthful health claim, even Sin()e June, 1962, FDA has amended the though it is safe and the claims made for it less a shareholder of the SBETC is per Order several times, but never held hearings. can be supported by competent proof. It forming an export contract. Early 1n 1968, they announced their inten doesn't make any difference how unreason Seventh, certified SBETC's are ex tion, in a separate action, to go even further able the interpretation is in 1968, FDA can empted from the controlled foreign cor and ban biofiavonoids entirely so not even point to the 1938 legislative report which poration provisions of the Internal Rev physicians could prescribe them. Now the says most clearly. "If it [a product] cqntains enue Code, unless during the taxable year hearings have started. It is a shame that Con nutritive ingredients but is sold for drug use a shareholder owning more than 20 per gress hasn't acted in the six years we have only, as clearly shown by the labeling and cent of the stock certifies SBETC also had since the FDA first announced their advertising, it w111 come within the definition intention to destroy the fOOd supplement of drug, but not that of food." Thus, Con owns 10 percent or more of the stock of industry as we now know Lt. But in fairness gress naively said FDA should put every a corporation with which the SBETC has to Congress, it wasn't until ee.rly in 1967 that product in one of two slots-foods or drugs. an export trade contract. the NHF had worked out a bill (now known If a heal.th claim of any kind was made for Finally, in order to best encourage the as Hosmer's H.R. 11837) that would limit a food on the label, Congress said, it should promotion of export trade of American FDA's power and which had a chance of be considered as a drug. small business enterprises, this b111 will getting passed. Congress has been most re FDA hearings can never change this legis be coordinated with existing programs ceptive to the bill. We now have 65 cospon lative flaw of 1938. Only Congress can do this. and services of the Department of Com sors. To succeed, we need 100 eo&ponsors. It takes an Act of Congress to change an Act of Congress. The Hosmer bill, 1f passed, will merce. FDA HOPES HEARINGS WILL PREVENT CONGRESS FROM ACTING ON H.R. 11837 make a third slot for FDA to use. Then there It is time that we ceased thinking of Will be (1) foods, (2) drugs and (3) food our export trade only in terms of huge FDA has urged Congressmen not to co sponsor Hosmer's bill. At the same time, they supplements. Then, whenever a. manufacturer business. Rather, this bill will enable us stubbornly refuse to give a Position Report makes a. true nutritional health claim sup to tap the resources of our small manu on it. FDA's strategy 1s to stall, and to divert ported by competent proof, FDA Will have to facturers to help the national effort to the attention of Congress and the energies place .such a product in the third slot pro restore our balance of trade. of NHF to their hearings so the Hosmer bill vided by Congress and Will not be able to will languish and die in Congress from lack of seize it as a misbranded "drug" as they have interest. Several Congressmen have recently been doing since 1938. Everybody knows foods FOOD SUPPLEMENT ORDER HEAR told their constituents that now FDA has are not drugs, regardless of what labeling INGS: ANOTHER FDA STALL started hearings, they will await the out claims are put on them. The only reason come before cosponsoring legislation. It Congress has never updated the law and sounds fair, but isn't. We have demanded provided the third category for food supple the FDA hearings for six years and some Con ments or foods for special dietary uses is HON. CRAIG HOSMER · gressmen have assumed we were turning to OF CALD'ORNIA Congress only because we could not get FDA that it hasn't been asked by us-the peo IN THE HOUSE OF REPRESENTATIVES to hold hearings. This is not the case. We ple--to do it. So don't let FDA's hearings sidetrack your Congressman from cosponsor Thursday, August 1, 1968 will win some minor victories in the hea;r ings, but FDA hearings ca.n never correct ing Hosmer's b111 or demanding a Position Mr. HOSMER. Mr. Speaker, it has the main legal issue in the food supplement Report from FDA (see NHF April, 1968 Bul been 1 year today since the House Inter- controversy. Only Congress oan do this. letin, pp. 12-14). August 1, 1968 EXTENSIONS OF RE·MARKS 24891
FDA HEARINGS VERGE ON CHAOS FROM THE with the Hearing Clerk and can be examined and evaluation survey was made on the BEGINNING at your convenience." Six Rivers and Klamath National Forests. When FDA's new Hearing Examiner; David AMERICAN CHIROPRACTIC ASSOCIATION ATTORNEY in the full of 1965. The survey revealed Harris, opened the prehearings at 10:00 a.m. PLAYING A LEADING ROLE a general beetle population buildup. It Tuesday, May 7, nearly 100 consumers or The attorney who forced Mr. Harris to rule was predicted that the beetles would at attorneys representing industry were on hand on this question was Mr. Harry N. Rosen tack green trees the following spring. to testify. This is too many to participate 1n field, appearing on behalf of the American an orderly hearing. Mr. Pratt, in his article Chiropractic Association. After the FDA's How severe the attacks would be and over this month, has listed the objective firms and attorneys introduced nearly 2,000 exhibits for what area they would occur were ques individuals. Some firms, like Abbott Labora identification, Mr. Rosenfield asked the Hear tions that oou:Id not be answered. tories, have as many as four attorneys repre ing Examiner: "May I respectfully request The adult beetle broods survived very senting them. Most consumers represented that they be distributed just as the others well under the bark of unsalvaged storm themselves. A court reporter was there and were. If one of the objectives is to advise damaged trees through the mild winter every word was taken down in an official us most effectively on the issues, this would of 1965-66. They emerged in the spring transcript. be very helpful." This resulted in Mr. Harris making his inequitable ruling above. We and successfully attacked standing green CONSUMERS MUST PAY MORE THAN EIGHT TIMES trees. Forest managers were advised to AS MUCH AS THE GOVERNMENT FOR A WRITTEN are most grateful that the American Chiro TRANSCRIPT OF THE HEARINGS practic Association has hired one of the include green-infested trees in their con best-qualified men in Washington, D.C. as tinuing salvage program. The first day's trenscript was 151 pages. their Washington Counsel, and have directed When we ordered a copy, we learned that ~e newly infested trees began to fade him to participate in these hearings. He is in midsummer, but it was not until an FDA had issued a contract to the Columbia doing a superb job! Although the American Reporting Company (300 Seventh Street, Medical Association is represented at the aerial survey flight was made in the fall S.W., Washington, D.C.) to be the official hearings by Paul R. M. Donelan, up till now that the full magnitude of the problem reporters. They were granted a contract with he only appeared at the first day's roll call. was realized. Groups of infested trees the unthinkable right to charge consumers We don't know where AMA will stand on the were observed on 1.6 million acres in Del and industry more than eight times as much issues at this time. Dr. William J. Darby and Norte, Humboldt, Siskiyou, and Trinity as the GovernPlent pays for a copy of the Dr. Ph111p L. White will be AMA's witnesses. same transcript! We were told we would have Counties and represented an unprece to pay 75¢ per sheet or $113.25 for the next dented loss of Douglas-fir. day delivery of the May 7 transcript! If all Although the extent of the infested 100 objectors ordered the same service, it area was known, the number and volume would give the Columbia Reporting Company IMPROVED SURVEY TECHNIQUES ?f killed trees had to be determined. This an order for $11,325 for just the first day. PAVE WAY FOR CALIFORNIA mformation was needed to inform the Their printing costs would be less than $500. TIMBER SALVAGE It has been estimated the hearings may last land managers about the scope of the three years or longer. Under this biased con damage so they could plan for maximum tract, if all 100 objectors bought copies at 75¢ HON. HAROLD T. JOHNSON recovery of the timber through salvage per sheet, the cost of the transcript alone, OF CALIFORNIA logging. Because of the large area in would run into several m1111ons of dollars I IN THE HOUSE OF REPRESENTATIVES volved a~d the extreme inaccessibility, normal trmber cruising methods could FDA PAYS 9 CENTS; CONSUMERS PAY 75 CENTS Thursday, August 1, 1968 A SHEET not be used. Therefore, with the assist Then NHF checked what the Government Mr. JOHNSON of California. Mr. ance of the Pacific Southwest Forest and had contracted to pay for their own copies Speaker, because of a damaging storm Range Experiment Station, a combined o! the transcript I We learned they only pay 4 years ago which set the stage for the aerial photo-ground survey was specially 9¢ a sheet! This is an intolerable injustice! invasion of massive infestations of north designed to measure the impact of the There are many consumers and small com ern California forests by Douglas-fir bark beetle epidemic. panies who would have a hard time buying transcripts at even 9¢ a sheet and who just beetles, a technique has been found to This scienti:fic:ally designed survey em cannot afford over $100 a day for them. It 1s measure quickly and cheaply the extent ployed two forms of sampling: first, color just as insufferable to have wealthy com of beetle infestation as a necessary step photographs were taken from the air at panies pay such a price. They have to pass leading to salvage of the damaged random locations over the entire infested such costs on to consumers. FDA's strategy 1s timber. area; and, second, ground checks of se simple to see through. They are going to do The improved technique was a matter lected outbreak centers recognized on the everything they can to make the hearings as of both necessity and invention by pest photographs were made to determine the expensive to objectors as possible. control experts of the Forest Service, U.S. actual number of Douglas-fir trees killed OUR COUNTER ACTION IS TO PROTEST AT ONCE TO Department of Agriculture. by beetles. Other data were taken to pro CONGRESS The Douglas-fir beetle, a destructive vide individual tree volumes killed by the When FDA let the contract to a court re pest of Douglas-fir trees throughout the beetles. porting company, they could have and should have asked them to bid on the exact cost western half of the Nation, had done As a result of the survey it was learned of the court reporter and those who trans little damage in California prior to 1964. that the beetles had killed 249,000 Doug cribe the notes. The total cost of the first Severe storms and subsequent floods in las-fir trees containing 796 million board copy should have been paid by the govern December of that year caused a vast feet of timber. This timber could pro ment. Then every additional copy bought amount of timber to be damaged and up vide 535 million board feet of finished by the government or consumers or industry rooted in the north-coastal region of lumber; enough to build 53,500 three should have been available to them at the California. bedroom frame houses. Guided by the actual cost of reproduction plus a reason Forest entomologists were aware that information gained from this survey, able profit. This would run us 10¢ or less per page, depending on the number of copies this huge accumulation of favorable land managers are salvaging much of the ordered, less than one-eighth as much as we habitat for the beetle could very well accessible dead timber. now must pay. trigger a buildup of beetle populations. If The survey cost $9,607 or $0.006 per ARE WE EXHAUSTING OUR ADMINISTRATIVE REM beetles multiplied in the damaged timber acre and required 318 color photographs, EDIES OR ARE WE GOING TO BE EXHAUSTED BY in 1965 they would be able to attack 53 ground samples, and 123 man-days THEM? healthy, green trees in the spring of 1966. of work. In order to provide results of Congress should write into the Adminis Forest land managers were alerted to equal accuracy, previously used survey trative Procedures Act an amendment which this possibility. As a preventive measure methods would have been more costly will prevent such an unendurable thing from they were encouraged to salvage and re and time consuming. For example, a ever happening in the future instigated by move as much of the storm-damaged standard ground survey over 1.6 million FDA or by any other agency. timber as possible. acres would have required 17,000 man FDA BRINGS 2,000 EXHIBITS TO PREHEARING A strong concerted effort was made to days and $830,000. Mapping infested cen CONFERENCE salvage the trees but the job was just ters seen by visual inspection from an FDA filed 2,000 exhibits with the Hearing too large--there ·were too many trees airplane coupled with a sufficient number Examiner but was not required to make a spread over too large an area of rough of ground visits would have taken- 400 copy available to each of the 100 parties in terrain. Salvage was hampered further man-days and cost $21,200, the proceedings. Instead, Mr. Harris un by the widespread destruction of exist This improved technique, using aerlal fairly ruled: "I am not going to require the ing road systems during the floods. photo interpretation combined with a Government to go to the expense of dupli To better judge the potential for a minimum of ground checking, proved cating so many documents. They are on file beetle epidemic, an extensive detection very effective in measuring the total 1m- 24892 CONGRESSIONAL RECORD- SENATE August 2, 1968 pact of the recent Douglas-fir beetle out and then with Henry Wallace from Iowa and dent, and 21 for Lindsay as Vice President. break in northern California and 1n pro Harry Truman from Missouri. And that course, which is now being urged But supermarkets and suburbs have on Mr. Nixon, looks to me Hke a sensible way viding data for salvage operations. The planned away regional differences, while the out. same technique looks particularly prom pace of change has tended to intensify dis ising for other bark beetle surveys be tinctions between age groups. As the constant cause large areas can be sampled at a criticism of Nixon and Vice President Hum THE AKRON BEACON JOURNAL EN reasonable cost and with a high degree phrey for being old, tired and fa.m.Uia.r sug DORSES CONGRESSMAN WHA of accuracy. The statistical technique is gests, the .generational line of division 1s as important as the regional one. LEN'S CRITICISM OF THE NLRB'S also adaptable to bark beetle losses 1n HANDLING OF THE NATIONAL other types of timber and terrain. But at 46, Mayor Lindsay is physically young. Having first run for omce only a dozen CASH REGISTER CO. UNION REP years ago, he is a fresh face. He also has the RESENTATION CASE looks, manner and wideranging cultural in terests of the new breed. He bridges the gen NIXON-LINDSAY TEAM VIEWED AS erational gap. HON. WILLIAM H. AYRES A DREAM TICKET FOR TIMES With respect to an even more basic line of OF OHIO division----l'a.ce--the question is not so easy. IN THE HOUSE OF REPRESENTATIVES Almost all candidates who have taken an HON. JAMES G. FULTON . outspokenly liberal line on issues associated Thursday, August 1, 1968 OF PENNSYLVANIA with the Negro have paid for it. And no one Mr. AYRES. Mr. Speaker, my distin IN THE HOUSE OF REPRESENTATIVES is more sympathetic to the Negro cause than the Mayor of New York. guished colleague from the State of Ohio Thursday, August 1, 1968 But his reputation is that of the man who [Mr. WHALEN] took the National Labor Mr. FULTON of Pennsylvania. Mr. has held the lid on. Hls personal appeal has Relations Board to task in a speech on Speaker, under leave to extend my re enabled him to avoid having to say some of the House floor on July 23, 1968. marks in the RECORD, I include the fol the things about Black Power that spelled He detailed for us what he rightly trouble for Senator Robert Kennedy, and called incredible ineptness and unbe lowing article from the Washington Post more recently for Hubert Humphrey and, I of August l, 1968: lievable bungling on the part of the believe, Governor Rockefeller. NLRB in its handling of a union repre NIXON-LINDSAY TEAM VIEWED AS A DREAM Not only is Lindsay not offensive to the low-income whites of the big cities and the sentation case affecting employees of the TICKET FOR TIMES National Cash Register Co. (By Joseph Kraft) South, but his standing with civil righits and civil liberties groups is so great, that it would An eminent newspaper in my district, Because the polls have not yielded the afford Nixon wider room for acommodations the Akron Beacon Journal, has com decisive result required for the candidacy in other quarters. With Lindsay as running mented editorially on Mr. WHALEN's of Nelson Rockefeller, the Nixon camp ap mate, Nixon could safely take stances that proaches the Republican convention full of evaluation of that continuing labor im would cut into the law and order vote that passe. confidence. Now serioufi attention is turn now seems to be heading in the direction of ing toward putting together what amounts to the third Party headed by former Governor Mr. Speaker, for the information of a dream ticket--a ticket that would have George Wallace of Alabama. the Members of the House, I herewith as Mr. Nixon's running mate, Mayor John But would Lindsay take the assignment? insert that editorial: Lindsay of New York. Well, his future career, notably the need to [From the Akron Beacon Journal, July 26, The Nixon-Lindsay ticket would be a exit from City Hall in New York moving up 1968] dream ticket because it is in harmony with wards, leaves open only very few possibll1ties the basic political condition of the country as the next step. His statements so. far have BUNGLING today. That condition features a public fallen short of the absolute prohibition, re Rep. Charles W. Whalen of Dayton is not opinion fragmented along unfamlliar lines. quired to rule him out. At the most, it is an one of those congressmen who make sensa Because opinion is so badly fragmented no open question. tional statements just to get their names in single candidate in either party can by him There remains the obvious drawback that the papers. Though a Republican, he does self appeal to a substantial majority of the both Nixon and Lindsay come from New not go out of his way to find fault with voters. Each man has to supplement his York. Under the Twelfth Amendment to the federal bureaus. He is, in short, a responsible own appeal with that of another political Constitution, the electors of a state cannot man. figure. For that reason, as much as because cast its votes in the electoral college for two So when Whalen says the National Labor of the "pressures of the nuclear age," both men from the same state as President and Relations Board has been guilty of "incred parties have been casting about intensively Vice President. ible ineptness and unbelievable bungling," for men of reputation as possible Vice Presi you can believe that the NLRB has really One possible way out is for Nixon to change goofed. dents. his residence to, say, Washington, D.C., after As Mayor of the media capital, Mr. Lind Whalen was talking about the NLRB's the election. But he has rightly pointed out handling of a dispute over what union shall say has had good exposure on television and that such a move would be ?onsidered in the press. He has campaigned across the represent 14,000 employes of the National "tricky." Cash Register Co. This, Whalen said, is what country for Governor Rockefeller. Thus he As it happens, however, the 43 electoral passes the first test. He is a man of na the NLRB did: votes from New York would become abso -Took five months to decide to call a bar tional stature. lutely vital only under very special condi Traditionally, the faUlt lines Vice Presi gaining election. tions--only if the Republicans carried New --set the date of the election 3Y2 months dential candidates were supposed to cement York and won a national majority in the were lines of regional tension. Franklin after expiration of the existing contract. electoral college by 20 votes or less. -Miscounted 100 votes cast during the Roosevelt, as usual, provides the classic Otherwise, the problem could be solved election. example. A New Yorker with broad appeal in simply by an advance statement that the -After six months still has not determined the cities of the East, he supplemented his New York Republican electors would split the outcome of the election. own strength first with John Garner of Texas, their vote, with 22 going for Nixon as Presi- That's pretty incredible all right.
SENATE-Friday, August 2, 1968
The Senate met at 10 a.m., and was for, and with a deathless cause that no Lord God of Hosts, be with us yet, called to order by the President pro weapon that has been formed can defeat. Let we forget-lest we forget. tempore. Hear our prayer: America, America, God The Chaplain, Rev. Frederick Brown mend thine every :flaw. We ask it in the dear Redeemer's Harris, D.D., offered the following Amid all the contentions and convul name. Amen. prayer: sions of these volcanic days, stlll may the Our Father God, enable, we pray, with Republic say with utter conftdence "God lives and the Government at Wash THE JOURNAL the light of Thy wisdo.m and strength of ington stlll stands,;, and with Thy help Mr. MANSFIELD. Mr. President, I ask Thy might, those who in these fear Will continue to stand as the beacon ·light unanimous consent that the reading of haunted times here entrusted with the of truth for all the earth. the J oumal of the proceedings of Thurs- stewardship of the Nation's life, send And now may the Lord bless you and day, August 1, 1968, be dispensed with. forth to waiting tasks conscious of a keep you; may the Lord make his face to The PRESIDENT pro tempore. With great heritage worth living for and dying Shine upon you and be gracious unto you. out objection, it is so ordered.