1960 CONGRESSIONAL RECORD- HOUSE 1553

h~mds some typewritten slips that were gressive and salutary action, a magistrate HOUSE OF 'REPRESENTATIVES · presented me by William Dornan, the whose poise of judgment has been tested postmaster of Canton. These are the and vindicated in a succession of national THURSDAY, JANUARY 28, 1960 emergencies; goOd citizen, brave soldier, original slips that were used by President wise executive, helper and leader of men, The House met at 12 o'clock noon. Theodore Roosevelt-at the dedication of exemplar to his people of the virtues that The Chaplain, Rev. Bernard Braskamp, the memorial in Canton, Ohio. On these build and conserve the State, society, and D.D., offered the following prayer: slips there is this notation: the home. . From these printed slips President Roose­ "'BERKELEY, May 15, 1901! ,, James 5: 16: The effectual fervent velt delivered his address at the dedication It would .be hard to imagine an epitaph prayer of a righteous man .availeth of the McKinley Memo:rial on September 30, which a good citizen would be more anxious much. · 1907. to deserve or one which would more happily God of all grace and goodness, may we Then there are the initials W. R. D. describe the qualities of that great and good begin this new day with a refreshed and citizen whose life we here commemorate. Those initials are of William Rufus Day He possessed to a very extraordinary degree renewed sense of Thy victorious and in­ who was Secretary of State under the gift of uniting discordant forces and dwelling presence. William McKinley and later a Justice of securing from them a harmonious action Whatever our personal needs and the Supreme Court. which told for good government. From pur­ troubles may be wilt Thou surround and I shall read this address at the dedica­ poses not merely diverse, but bitterly con­ sustain us with the assurance of Thy tion of the monument because I think flicting, he was able to secure healthful ac­ gracious providence. it is apropos today. These are the words tion for the good of the State. In both Grant that amid the pressures of our poise and judgment he rose level to the sev­ of Theodore Roosevelt: eral emergencies he had to meet as leader troubled days we may have within us We have gathered together today to pay that peace which the world can neither of the Nation, and like all men with the root our need of respect and affection to the mem­ of true greatness in ~hem he grew to steadily give nor take away. ory of William McKinley, who as President larger stature under the stress of heavy re­ Inspire us to break down the barriers won a place in the hearts of the American sponsibilities. He was a good citizen and a which divide mankind by sharing our people such as but three or four of all the brave soldier, a Chief Executive whose wis­ blessings with the poor and destitute and Presidents of this country have ever won. dom entitled him to the trust which he re­ by giving comfort and cheer to those He was . of singular uprightness and purity ceived throughout the Nation. He was not whose hearts are heavy and broken. of character, alike in public and in private only a leader of men but preeminently a life; a citizen who loved peace, he did his helper of men; for one of his most marked Hear us in the name of our blessed duty faithfully and well for 4 years of war traits was the intensely human quality of Lord. Amen. when the honor of the Nation called him to his wise and deep sympathy. Finally, he not arms. As Congressman, as Governor of his merely preached, he was that most valuable ~tate, and finally as President, he rose to of an· citizens in a democracy like ours, a THE _JOURNAL the foremost place among our statesmen, man who in th,e highest place served as an The Journal of the proceedings of yes­ reaching a position which would satisfy the unconscious example to his people of the terday was read and approved. keenest ambition; but he never lost that sim­ virtues that build and conserve alike our ple and thoughtful kindness toward every public life, and the foundation of all public human being, great or sma~. lofty or hum- life, the intimate ·life of the home . MESSAGE FROM THE SENATE . ble, with whom he was brought in contact, Many lessons are taught us by his career, which so endeared him to our people. He but none more valuable than the lesson of A message from the Senate by Mr. Mc­ had to grapple with more serious and com­ broad human sympathy for and among all Gown, one of its clerks announced that plex problems than any President since Lin­ of our citizens of all classes and creeds. No the Senate had passed a bill of the fol­ coln, and yet, while meeting every demand other President has ever more deserved to lowing title, in which the concurrence of statesmanship, he continued to live a have his life work characterized in Lincoln's of the House is requested: beautiful and touching family life, a life words as being carried on "with malice to­ very healthy for this Nation to see in its ward none, with charity toward all." As a S. 694. An act to provide Federal assist­ foremost citizen; and now the woman who boy he worked hard with his hands; he en­ ance for projects which will demonstrate or walked in ·the shadow ever after his death, tered the Army as a private soldier; he knew develop techniques and practices leading to the· wife to whom his loss was a calamity poverty; he earned his own livelihood; and a solution of the Nation's juvenile delin­ more crushing than it could be to any other by his own exertions he finally rose to the quency control problems. human being,' lies beside him here in the position of a man of moderate means. Not same Eepulcher. merely was he in personal touch with farmer There is a singular appropriateness in the and town dweller, with capitalist and wage­ BIRTHDAY ANNIVERSARY OF PRES­ inscription ·an his monument . . Mr. Cortel­ worker, but he felt an intimate understand­ IDENT WILLIAM McKINLEY you, whose relations with him were of such ing of each, and therefore an intimate sym­ The SPEAKER. The Chair recognizes close intimacy, gives me the following in­ pathy with each; and his consistent effort formation about it: On the President's trip was to try to judge all by the same standard the gentleman from Ohio [Mr. Bowl. to the Pacific slope in the spring of 1901 and to treat all with the same justice. Arro­ Mr. BOW. Mr. Speaker, I ask unani­ President Wheeler, of the University of gance toward the weak, and envious hatred mous consent to revise and extend my .California, conferred the degree of LL.I;>. of those well off, were equally abhorrent to remarks, and that all Members have per­ upon him in words so well chosen that they his just and gentle soul. mission to extend their remarks in the struck. the fl:l.Stidious taste of John ~ay, Surely this attitude of his should be the RECORD on the life and accomplishments then Secretary of State, . who wrote and attitude of all our people today. It would of William McKinley. asked for a copy of them from President be a cruel disaster to this country to per­ Wheeler. On the receipt of this copy he sent mit ourselves 'to adopt an attitude of hatred The SPEAKER. Without objection, the following letter to President McKinley, and envy toward success worthily won, it is so ordered. a letter which now seems filled with a toward wealth honestly acquired. Let us There wa.S no objection. ·strange and unconscious prescience: in this respect profit by the example of the Mr. BOW. Mr. Speaker, the Ohio del­ "DEAR MR. PRESIDENT: President Wheeler Republics of this Western Hemisphere to the egation and the citizens of . the 16th sent me the enclosed at my request. You south of us. · Some of these Republics have Congressional District appreciate the will have the words in more permanent prospered greatly; but there are certain ones shape. They seem to be remarkably well that have lagged far behind, that still con­ Speaker's recognizing the Representative chosen, and stately and dignified enough from the 16th -Congressional District at tinue in a condition of material poverty, of to serve-long hence, please God-as your social and political ~nrest and confusion. this time to speak in memory of a great epitaph. Without exception the Republics of the for­ American, a great President, and a great "Yours; faithfully, mer class are those in which honest indus­ Member of this Congress. In the past, "JOHN HAY. try has been assured of reward and protec­ for many years, the Speaker recognized •• 'UNIVERSITY OF CALIFORNIA, tion; those where a cordial welcome has the Honorable Tom Jenkins of Ohio to ·" 'OFFICE OF THE PRESIDENT. been extended to the kind of enterprise make that presentation. Tom Jenkins "'By authority vested in me by the regents which benefits the whole country, while in­ has passed away; he is no longer with of the University of California, I confer the cidentally, as is right and proper, giving degree of DOctor of Laws upon William Mc­ substantial rewards to those who manifest us. It is now my honor to ·Offer this Kinley; President of the United States,· a it. On the other hand, the poor and .back­ tribute to William McKinley. statesman singularly gifted to unite the dis­ ward Republics, the Republics in which the Mr. Speaker, I thought I might do that cordant forces of the Government and mold lot of the average citizen is least desirable, this year in this form. I have in 'my the diverse purposes of men toward pro- and the lot of the laboring man worst o! 1554 CONGRESSIONAL RECORD- HOUSE January 28 all, are precisely those Republics 1n which time, to pay tribute to the late President which he believed are still basic prin­ industry has been killed because wealth ex­ William - McKinley, a· great Ohioan, ciples of our country and will long en­ posed its owner to spoliation. To these communities foreign capital now rarely whose birthday we celebrate today. dure and be a part of our great American comes, because it ha.s been found that as William McKinley was born in Niles, heritage. soon as capital is employed so as to give Trumbull County, Ohio, in 1843. He Mr. McCORMACK. Mr. Speaker, substantial remuneration to those supply­ went to school in Ohio and attended Al­ January 29 marks the 117th anniversary ing it, it excites ignorant envy and hostility, legheny College in Pennsylvania with of the birth of William McKinley, the which result in such oppressive action, with­ the ambition to later study law. Mc­ 25th President of the United States. in or without the law, as sooner or later to Kinley joined the Army as a private and The future President was born in the work a virtual confiscation. Every mani­ distinguished himself with his service in little town of Niles, Ohio, the seventh of festation of feeling of this kind 1n our civi­ lization should be crushed at the outset by the Civil War. President Lincoln him­ nine children of William and Nancy Al­ the weight of a sensible public opinion. self cited him for gallant and meritorious lison McKinley. His parents were From the standpoint of our material pros­ service and discharged him as a brevet sturdy middle-class working people of perity there is only one other thing as im­ major. Scottish, Irish, and English descent. He portant as the discouragement of a spirit After the war, McKinley began his received his education in the public of envy and hostility toward honest busi­ study of the law and was admitted to schools, in Poland Academy, and in Al­ nessmen, toward honest men of means; this the bar in Warren, Ohio, which is in my legheny College, in Pennsylvania. 1s the discouragement of dishonest business­ congressional district, in March of 1867 men, the war upon the chicanery and wrong­ In June 1861, with a mother's blessing doing which are peculiarly repulsive, and started his practice in the city of and a father's affectionate farewell, he peculiarly noxious, when exhibited by men Canton, Ohio. enlisted as a private in the 23d Regiment who have no excuse of want, of poverty, of In 1869 McKinley was elected to his of Ohio Volunteer Infantry. Four years. ignorance, for their crimes. Men of means, first political job as prosecuting attor­ later he was mustered out as a brevet and above all men of great wealth, can exist ney of Stark County, at the age of 26. major. in safety under the peaceful protection of In 1876 he was elected to the Congress After the war he practiced law in Can­ the state, only in orderly societies, where of the United States. He served three ton and began a career in public office liberty manifests itself through and under the law. It is these men who, more than consecutive terms and was elected to which was to extend over a quarter of a any others, should, in the interests of the what he thought would be his fourth century. During that period he served class to which they belong, in the interests term in the Congress, but a contest was the people of his community, State, and of their children and their children's chil­ filed, and he did not serve the full term. Nation as prosecuting attorney, Member dren. seek in every way, but especially in the Then Mr. McKinley was reelected after of Congress, Governor, and President. conduct of their lives, to insist upon and to being out of Congress for one term and In the early part of 1898 the Nation was build up respect for the law. It may not be served three more terms, at which time gripped by war hysteria. Until early true from the standpoint of some particular individual of this class, but in the long run he was defeated. However, he went on April, McKinley firmly held his ground it is preeminently true from the standpoint to be elected Governor of Ohio for two against the war party and shouldered of the class as a whole, no less than of the terms and elected twice to be the Presi­ full responsibility for his Cuban peace country as a whole, that it is a veritable dent of the United States. In his sec­ policy. But the futility of further nego­ calamity to achieve a temporary triumph by ond term he was assassinated. The tiation was brought home to him and violation or evasion of the law; and we are whole country mourned his death, and on April 11, in a message to Congress, the best friends of the man of property, we the example of his life was one which he recommended forcible intervention. show ourselves the stanchest upholders of strengthened in his contemporaries an the rights of property, when we set our faces On September 6, 1901, while holding like flint against those offenders who do undying belief in American principles. a public reception at the Pan-American wrong in order to acquire great wealth or I join with my colleagues in the Ohio Exposition in Buffalo, he was struck who use this wealth as a help to wrongdoing. delegation in honoring this outstanding down by an assassin's bullet. He was re­ Wrongdoing is confined to no class. Good American. moved to the residence of the president and evil are to be found among both rich Mr. BOW. Mr. Speaker, I appreciate of the exposition and died there 8 days and poor, and in drawing the line among the comments of the gentleman from later. our ,fellows we must draw it on conduct and Ohio [Mr. COOK]. not on worldly possessions. In the abstract As a public speaker, McKinley had few most of us will admit this. In the concrete Mr. BROWN of Ohio. Mr. Speaker, equals. His personality was natural and we can act upon such doctrine only if we will the gentleman yield? free from artifice, gentle, and strong. really have knowledge of and sympathy with Mr. BOW. I yield. Naturally kindly, he was a good concilia­ one another. If both the wageworker and Mr. BROWN of Ohio. Mr. Speaker, tor. It is to this man, quiet, dignified, . the capitalist are able to enter each into I regret I was a bit late in getting to the considerate of others, unwavering in in­ the other's life, to meet him so as to get tegrity, unchanged by success, and hum­ into genuine sympathy with him, most of :ftoor, but I do wish to join with the Rep­ the misunderstanding between them will resentative from the 16th District of ble before his God, that we pay tribute disappear and its place will be taken by a Ohio, which gave President McKinley to today. judgment broader, juster, more kindly, and the country, in the tribute being paid to more generous; for each will find in the him on this, his natal anniversary. The THE LATE HONORABLE RALPH ASH­ other the same essential human attributes people of Ohio are still proud of the that exist in himself. It was President Mc­ great record that Mr. McKinley made LEY HORR, A FORMER REPRE­ Kinley's peculiar glory that in actual prac­ not only in the Presidency but in this SENTATIVE FROM THE STATE OF tice he realized this as it is given to but WASIDNGTON few men to realize it; that his broad and House of Representatives as well. When deep sympathies made him feel a genuine I was a very small boy; President Mc­ The SPEAKER. The Chair recognizes sense of oneness with all his fellow Ameri­ Kinley was the first President of the the gentleman from Washington [Mr. cans, whatever their station or work in life, United States I ever had the opportunity PELLY]. so that to his soul they were all joined with to see. I can still remember the kindly Mr. PELLY. Mr. Speaker, it is my sad him in a great brotherly democracy of the smile on his face and the little pat that spirit. It is not given to many of us 1n our duty to notify the House of the death, lives actually to realize this attitude to the he gave me on the shoulder at that time on January 26, 1960, of Ralph Ashley extent that he did; but we can at least have when I was about 3 or 4 years old. Wil­ Horr, a former Member who served as it before us as the goal of our endeavor, and liam McKinley will always live in the Republican Representative from the by so doing we shall pay honor better than hearts not only of all Ohioans, but in the First Congressional District of the State in any other way to the memory of the .dead hearts of all the American people. of Washington in the 72d Congress from President whose services in life we this day Mr. HENDERSON. Mr. Speaker, will March 1, 1931, to March 3, 1933. commemorate. the gentleman yield? Mr. Horr was born in Saybrook, Mc­ Mr. COOK. Mr. Speaker, will the Mr. BOW. I yield. Lean County, Ill., on August 12, 1884. gentleman yield? Mr. HENDERSON. Mr. Speaker, I He attended the public schools and the Mr. BOW. I yield to the gentleman wish to join with the others in this body University of Illinois at Urbana. In from Ohio. this afternoon in paying tribute to a 1908 he moved to the State of Washing­ Mr. COOK. Mr. Speaker, I appreciate great American, a great Ohioan and a ton and settled in Seattle, where he was the courtesy of the gentleman from great President. Those principles for graduated from the Law Department of Ohio [Mr. Bowl in yielding me this which William McKinley stood and in the University of Washington in 1911. 1960 CONGRESSIONAL RECORD- HOUSE 1555 Following this he wns admitted to the ganizations as the ADA and the NAACP. The usual reservation that if any addi­ bar and commenced practice of law. It is a sad commentary indeed on Amer­ tional rules are granted in time, they will He was chief deputy county treasurer ican statesmanship. be called up. of King County in 1911 and 1912; grad­ I call the attention of the House to Then ·there is the usual reservation uate manager of athletics at the Uni­ the fact that there have been pending that conference reports may be brought versity. of Washington, 1912 and 1913, in this body since last year resolutions up at any time. served as chairman of the Republican announcing that it is the sense of the · . Any further program will be an· county committee of King County and Congress that our national debt should nounced later. during the First World War served from Pe reduced annually by an amount not Mr. HOEVEN. Mr. Speaker, will the August 21, 1918, as a lieutenant and less than 1 percent of the total outstand­ gentleman yield? battalion adjutant in the 26th Infantry i:ng debt. I introduced one of such res­ Mr. HALLECK. I yield. Regiment with overseas service and was olutions, it being House Concurrent Res­ Mr HOEVEN. The majority leader discharged March 18, 1920. olution 204. made reference to a bill relating to pro­ . Mr. Horr was a prominent figure in I arise to protest the wasting of time duction payments on hogs. Seattle legal and political circles until which has been going on now since the Mr. McCORMACK. That is a bill re­ 1957 when he retired from law practice. beginning of this session. I urge· that ported out of the Committee on Agri­ However, he continued on as a precinct the time and efforts of the House be de­ culture relating to lightweight hogs. committeeman until the time of his voted to solving the real and genuine Mr. HOEVEN. There is no rule on death. Mr. Horr never ceased to have a problems which confront us instead of the bill as yet. deep interest in politics. Failing in his pandering to minority pressure groups Mr. McCORMACK. The gentleman bid for reelection to the House, he ran for political purposes. will note that I said, "If a rule is re­ Unsuccessfully in 1936 for Governor of ported." Washington. Mr. HOEVEN. A rule should not be Mr. Horr belonged to Delta Tau Delta LEGISLATIVE PROGRAM FOR reported without most careful and ex­ and Phi Delta Phi fraternities and was NEXT WEEK haustive hearings. active iii the Masons, Elks, Moose, and Mr. McCORMACK. My friend will Eagles. · · Mr. HALLECK. Mr. Speaker, I ask note that I said that if a rule is reported Mr. Horr leaves his wife, Mrs. Lenora unanimous consent to address the House the bill will be up for consideration. I Horr, and a daughter. He also is sur­ for 1 minute in order to ask the majority did not say it would be; it depends on vived by two sisters, a brother, and three leader about the program for next week. whether a rule is reported, when and if, grandchildren. I know that I speak for The SPEAKER. Without objection it those Members of the House who served is so ordered. with Mr. Horr, now, of. course, few in · There was no objection. ADJOURNMENT OVER number, in expressing regret and ex­ Mr. McCORMACK. Mr. Speaker, on Mr. McCORMACK. Mr. Speaker, I tending deep sympathy to his family. Monday there will be the call of the Con­ ask unanimous consent that when the Funeral services will be held this sent Calendar and there will be seven House adjourns today it adjourn to meet coming Saturday in Seattle. bills under suspension of the rules: on Monday next. H.R. 8318, exemption from tax of bi­ The SPEAKER. Is there objection to cycle tires and tubes. the request of the gentleman from H.R. 5054, marking of imported arti- · URGENT LEGISLATION BEFORE Massachusetts? cles and containers. There was no objection. . THE CONGRESS H.R. 1217, suspend duty on amorphous Mr. DAVIS of Georgia. Mr. Speaker, graphite. I ask unanimous consent to address the H.R. 9464, qualifications, Chief and CALENDAR WEDNESDAY House for 1 minute and to revise and Deputy, Bureau of Ships of the Navy. extend my remarks. H.R. 9465, a bill relating to the loan Mr. McCORMACK. Mr. Speaker, I The SPEAKER. Is there objection of a naval vessel to China. ask unanimous consent that business in to the request of the gentleman from House Concurrent Resolution 459, a order on Calendar Wednesday next be Georgia? resolution relating to interpretation of dispensed with. There was no objection. treaties with reference to the Panama The SPEAKER. Is there objection to Mr. DAVIS of Georgia. Mr. Speaker, Canal. the request of the gentleman from today we come to the end of the 4th On that I am informed a rollcall will Massachusetts? week of this new session of Congress. be asked. The gentleman from Iowa . There was no objection. We knew in advance this session would [Mr. GRoss] told me over a week ago necessarily be shorter than the sessions that he was going to ask for a rollcall of the last few years. vote on that and I have talked with NATIONAL JUNIOR ACHIEVEMENT By custom and under Hous.e rules our members of the committee and chair­ WEEK legislative calendar is made up and pre­ man of the committee and they are go­ Mr. McCORMACK. Mr. Speaker, I sented by the majority :floor leader. ing to aslt for a rollcall on that also. ask unanimous consent for the present Each week of this new session the ma­ Then there is House Concurrent Reso­ consideration of Senate Concurrent jority :floor leader has announced there lution 465, relating to the desecration of Resolution 81, proposing observance of would be no Legislative Calendar but places of worship and on that I am in­ week beginning January 31, 1960, as that the House would be called into ses­ formed also a rollcall will be requested. National Junior Achievement Week, and sion each day to give Members an oppor­ Then there is H.R. 5789, incorporat­ make the announcement that several tunity to sign the civil right's discharge ing the Agriculutral Hall of Fame, if it Members of the House have introduced petition. is not passed on the Consent Calendar. similar resolutions, including the gentle­ Our Government faces one of the most On Tuesday there will be the call of man from Tilinois [Mr. COLLIER] and critical periods in its history. Our na­ the Private Calendar. the gentleman from North Carolina tional debt stands at an alltime high­ If the Rules Committee reports out [Mr. JONAS]. nearly $292 billion. Our annual interest rules next week, several bills are in order. The Clerk read the resolution, as rate has reached an alltime high-con­ It all depends if the rules are reported follows: · siderably more than $9 billion per year. out, of course. There is H.R. 3151 relat­ Whereas it was the initiative, the sense Many of our leaders acknowledge we ing to withholding of city income taxes. of individual dignity, and the determination have lost ground in missile production. I think that · was up under suspension to mold their own futures that motivated At this time, when we need so much last year and did not get the necessary those who founded this Nation; and tO be bending all our energies to the task two-thirds vote. · Whereas Junior Achievement, Inc., through of keeping our Government sound and Then there is H.R. 9662, certain tech­ its learning-by-doing program, is inculcating those ideals In American youth by helping solvent, and our Nation in its long rec­ nical changes in· the 1954 Internal Reve­ them to set up and operate their own small- ognized position of world leadership, we nue Code. . scale business enterprises: and waste 4 weeks of precious time jumping Then there is H.R. 8394, a bili relating Whereas their experience in running through the hoop for such radical or- to lightweight ho_gs. Junior Achievement companies will provide . . ~ . 1556 CONGRESSIONAL RECORD- HOUSE January 28 these young people with a heightened un­ and, hence, is now supreme law of the One section of this Navy order stipu­ derstanding of the privileges and duties o! land. All members of the United Na­ lated that in the event any of its MSTS citizenship and better prepare tb..em to tions are ipso facto parties to the statute chartered vessels should be prevented assume the responsibilities of community from loading or discharging in any Arab leadership; and and are bound by its provis'ions-article Whereas thousands of American business­ 93, Charter. In July 1945, after ratifica­ port by local authorities because of the men voluntarily give unstintingly of their tion of the U.N. Charter by the Senate, fact that that vessel had previously time, their counsel, and their experience for there was much pressure by the inter­ traded with Israel, then the charterer the benefit of the members of Junior nationalists to get our Nation under the would have the option of canceling his Achievement; and jurisdiction of the World Court. A reso­ Navy charter or substituting another Whereas it is understood that the week lution giving the consent of the U.S. vessel. beginning January 31, 1960, and ending The practical effect of this instruction February 6, 1960, will be observed as Na­ Senate to our Government's acceptance tional Junior Achievement Week: Now, of the World Court was introduced in means that the Navy is tacitly going therefore, be it November 1945 by Senator MoRsE. A along with the Arab embargo against Resolved by the Senate (the House of similar joint resolution was introduced Israel, undertaken improperly and ille­ Representatives concurring), That the Pres­ in the House in December 1945 by Con­ gally and without basis in international ident of the United States is authorized and gressman Christian Herter, the present law. requested to issue a proclamation desig­ Secretary of State. I believe it is highly improper that the, nating the week of January.31, 1960, through When the Morse resolution came to Navy should take any action which, even February 6, 1960, as National Junior Achievement Week and urging all citizens the :floor of the Senate, an amendment indirectly, would have the effect of en­ of our country to salute the activities of consisting of six words was proposed by dorsing and carrying out any such illegal Junior Achievers and their volunteer adult Senator Tom ·Oonnally, of Texas. These and outrageous policy, particularly when advisers through appropriate ceremonies. significant and meaningful words were that policy is directed against a nation "as determined by the United States." which this country helped to create, The SPEAKER. Is there objection to The Morse resolution with the Connally which wholeheartedly subscribes to and the request of the gentleman from amendment was adopted in the Senate supports the same principles of freedom Massachusetts? on August 2, 1946. The amended reso­ and democracy which our own country There was no objection. lution provided the United States with exemplifies, and which plays such an The concurrent resolution was agreed the authority to determine which mat­ important role in the economic and to. ters are within its own national jurisdic­ military power of the free world in the A motion to reconsider was laid on the tion. critical area of the Middle East. table. There is much agitation by the inter­ I have therefore today requested the nationalists today to repeal the Connally Secretary of the Navy to withdraw this THE WORLD COURT amendment. Such action would result invitation No. 30 so that the Navy will Mr. ALFORD. Mr. Speaker, I ask in impairment of American sovereignty play no further part in supporting this unanimous consent to address the House and could serve as a steppingstone to improper policy. for 1 minute and to revise and extend complete world government by those I am sure the Navy has no intention my remarks. groups endeavoring to place our Nation of discriminating against a country so under such alien control. For example closely allied to us in tradition and belief, The SPEAKER. Is there objection if the Connally amendment is repealed, and I am hopeful that tne corrective to the request of the gentleman from the World Court could decide that the action I have suggested will soon be Arkansas? U.S. immigration laws are international taken. There was no objection. affairs and could, in effect, dictate Amer­ Mr. ALFORD. Mr. Speaker, it was ican immigration policy. Also, surely shocking to realize that on yesterday two LEGISLATION TO AUTHORIZE CON­ all patriotic Americans can readily see STRUCTION OF AN OCEANGOING members of the Cabinet, the Secretary that a motion to eliminate U.S. control of of State and the Attorney General of the the Panama Canal would have little dim­ HYDROFOIL VESSEL United States, appeared before the Sen­ culty of approval. Mr. PELLY. Mr. Speaker, I ask unan­ ate Foreign Relations Committee and Any resolution to repeal the Connally imous consent to address the House for advocated the enactment of legislation amendment must be defeated if the 1 minute and to revise and extend my which would in effect impair the sover­ United States is to retain its sovereignty. remarks. eignty of the United States. They rec­ How can any right thinking, intelligent, The SPEAKER. Is there objection ommended the passage of Senate Reso­ patriotic American justify exposing their to the ·request of the gentleman from lution 94, introduced by Senator HUM­ country to the risk of being placed at the Washington? PHREY, which would strike out the words mercy of a foreign court. This, indeed, There was no objection. of the Connally amendment, "as de­ would be rule by man and not rule by Mr. PELLY. Mr. Speaker, I am today termined by the United States." This law. introducing a bill to authorize the con­ action would seriously impair the sov­ struction of an oceangoing hydrofoil ereignty of our country by vesting poten­ vessel. The purpose of such a vessel, tial power over purely domestic matters NAVY MUST STOP SUPPORTING when constructed, would be to demon­ in an essentially foreign tribunal, two of ARAB BOYCOTT AGAINST ISRAEL strate the commercial application of this whose members at the present time are Mr. STRA'ITON. Mr. Speaker, I ask revolutionary type of seacraft. representatives of Iron Curtain coun­ unanimous consent to address the House The Federal Maritime Administration tries. Mr. Speaker, in all sincerity I for 1 minute and to revise and extend my had been doing much research in this respectfully ask of the Members of Con­ remarks. field and recently awarded a $1% million gress or any loyal American how, in the The SPEAKER. Is there objection contract for construction of a 100-foot, name of all honesty and patriotism, we to the request of the gentleman from 80-ton, 60-80-knot model. My bill would can take an oath under God to uphold New York? .authorize the Maritime Board to con­ the Constitution of the United States There was no objeetion. struct the first of a :fleet of hydrofoil ves­ while at the same time advocating that Mr. STRA'ITON. Mr. Speaker, on sels to operate in domestic and foreign the basic rights of American citizens be December 18 last year the Navy issued commerce, designed for open-ocean, all­ placed under the jurisdiction of a foreign an invitation over the signature of the weather service to tie in with conven­ court for possible determination. Military Sea. Transportation Service in­ tional water surface vessels. Maritime The World Court, as it is commonly viting charters for American-flag tank­ officials visualize hydrofoil ships crossing called, or the International Court of Jus­ ers to transport oil for naval purposes the Atlantic in 36 hours. They say that tice, is the principal judicial organ of to and from critical areas of the Persian a craft 250 feet long, of 500 tons, and the United Nations and was created by Gulf. capable of 80 knots would be commer­ the Charter of the United Nations and a As you know, Arab nations in the cially feasible and well suited for such a statute annexed to and being a part of Middle East have clamped an embargo run as between· Alaska and the Pacific the.charter-article 92, Charter. These on Israeli shipping and will not even coast ports. This newly developed type legal instruments have been approved by service foreign ships w!lich have at any of fast vessel has a great potential for the U.s. Senate and executed as a treaty time traded in Israeli ports. the Great Lakes and all coastal areas. 1960 CONGRESSIONAL RECORD- HOUSE 1557 Take for example the Alaska situation. - the solution of this deplorable problem by Vice President NIXON, Professor Gal- · · Passenger ships were discontinued on uncovered by the Commission. braith has this to say: this run years ago. Operational costs I shall also introduce today the pro­ Mr. NxxoN pelieves higher rates would help made continued service economically im­ posal made by the Attorney General on sell the longer maturities. My own view is possible. But with the establishing which constitutes an alternate remedy that a clear intention to hold rates stable through the use of hydrofoil crafts, an for the correction of this problem. Dean would do as much. 8-hour daylight trip, in the opinion of Robert G. Storey, Vice Chairman of the On this I fully agree with Professor the Maritime Administration engineers commission on Civil Rights, stated in his Galbraith. If the Congress wants to would be highly profitable. The cost of testimony last week before the Senate help the Treasury sell longer maturi­ transportation could be greatly reduced Committee on Rules and Administration ties, it can give just as much help by in fact and a good return on the invest­ the Commission fully recognized that making it clear that we do not intend to ment of capital realized by an operator. other recommendations may be more tamper with the interest-rate ceiling, as Recently, there was speculation that meritorious. In my judgment the Con­ we can by repealing the interest-rate the United States was behind Russia in gress should have before it the composite ceiling. I might add that there is a con­ the development of an atomic-powered thinking of all who have dealt with this siderable body of opinion within the hydrofoil. In talking with our engi­ problem. Accordingly it is my desire to financial circles which support this view. neers, however, I am told tpat we have see that both measures come before our FINANCIAL WRITER SAYS INVESTING COMMUNITY developed a small compact gas engine Judiciary Committee of which I am a IS HOLDING BACK, EXPECTING HIGHER RATES which has a horsepower equal to that of member. I believe that careful analysis the largest cargo ships and that present of these measures will provide the best For example, Mr. Donald I. Rogers, contemplated use makes utilization of possible remedy. who is business and financial editor of nuclear propulsion impractical. the New York Herald Tribune, wrote on Mr. Speaker, I have every reason to January 15 of this year on the question believe that in the very near future this PROFESSOR GALBRAITH POINTS of why the stock market broke in _the country will be utilizing the hydrofoil previous week. Much of the opinion in OUT WHAT CONGRESSIONAL Wall Street, he reported, was to the effect principle in s~all and large vessels and DEMOCRATS CAN DO TO HELP that the consideration and passage of that "the entire investing community" my bill is needed to initiate a transition THE TREASURY SELL LONG-TERM was holding back, waiting for an increase of equal significance as in the past oc­ BONDS WITHOUT INCREASING in interest rates. It had been widely curred when shipping went from sail to THE 4%-PERCENT RATE predicted that the Federal ~serve was steam. This legislation has great sig­ The SPEAKER. Under the previous about to raise the discount rate, which nificance. order of the House, the gentleman from is the Federal Reserve's normal way of Texas [Mr. PATMAN] is recognized for 30 signaling the financial community that minutes. higher interest rates are coming. Speak­ CIVIL RIGHTS LEGISLATION ing of some of the opinions prevailing in Mr. PATMAN. Mr. Speaker, I ask Wall Street, Mr. Rogers· said: Mr. LINDSAY. Mr. Speaker, I ask unanimous consent to revise and extend unanimous consent to address the House my remarks and . include extraneous From those who are prone to theorize at the drop of a point on the Dow-Jones aver­ for 1 minute and to revise and extend matter. age, you get the· idea that the entire invest­ my remarks. The SPEAKER. Is there objection ing community is holding back, waiting for The SPEAKER. Is there objection to the request of the gentleman from an increase in the discount rate, something to the request of the gentleman from Texas? which was predicted for this week. New York? There was no objection. There was no objection. The Federal Reserve did not make. the Mr. PATMAN. Mr. Speaker, about a increase in the discount rate on the date Mr. LINDSAY. Mr. Speaker, much year ago the Congress asked the Jo~nt debate has been heard already on the that was generally predicted, but the Economic Committee to make a full m­ financial journals are still reporting it subject of civil rights legislation and the vestigation to get the answers to such inability to get a bill on the floor. I have is likely to come yet. Mr. Rogers said questions as what to do about inflation, further: stated my position frequently that the whether interest rates should be higher civil rights bill should be brought to the or lower, whether the interest rate ceil­ The rate may still be raised. floor. I have also S'tated that under the Another theory one hears is that the insti­ ing on long-term Government bonds tutional investors, the pension funds and present appalling circumstances where should be lifted, and so on. investment trusts, and other big accounts the majority would rather play politics The Commiittee spent about $200,000 are holding back to see what happens inthe than bring the bill out, the shortest route on these questions, heard the best ex­ next few days. now is the discharge petition. I signed perts in the country, and did a great deal AN INVESTMENT BANKER SAYS RAISING INTEREST the petition last session, having even of hard work. And it got most of the then lost confidence in the majority RATES CUTS GOVERNMENT BOND SALES answers. Certainly it got the answer to The clearest statement of the effect leadership to control their own ma­ one question very clearly. The interest chinery. In the same context I have of this dilly-dallying over interest rates rate ceiling should not be lifted; interest and constantly raising interest rates was given intensive study to the report of the rates are too high and should be brought Commission on Civil Rights. The Com­ made by a man who is actually in the in­ down. vestment banking business, in a letter mission undertook their task with great Furthermore, the committee recom­ care and diligence and they have pre­ which I put into the RECORD last June mended several things to be done 12. This investment banker wrote me sented to the Congress certain findings of promptly to help bring interest rates fact and recommendations. One of those that he was :flatly opposed to raising the down. But it neglected to mention one 4Y2-percent ceiling on Government bonds findings of fact was that certain citizens thing which Congress can do, and the are being deprived of the right to vote. for the simple reason that the Govern­ Democrats in Congress especially can do ment's practice of continually cutting the There is ample evidence in the Commis­ to help the Treasury sell long-term sion record to support that conclusion. price, as it were, of each successive bond bonds under the present ceiling, simply issue was making it harder and harder On the basis of those facts the Commis­ . with a :flip of the wrist, a straightening sion has recommended to the Congress for him to sell bonds. And that is his that appropriate legislation be enacted of the spine, and a clear utterance that livelihood-selling bonds. He wrote: to insure the right to vote to every citi­ we intend to hold the line on interest JUNE 9, 1959. zen, regardless of race, color, religion, or rates. We in the investment banking industry national origin. I have also given inten­ A CLEAR INTENTION TO HOLD THE LINE ON IN• are · extremely alarmed at the mechanical sive study to the recommendation on TEREST RATES WiLL HELP AS MUCH AS RAISING procedures currently employed by the Fed­ INTEREST RATES eral Government in the marketing of U.S. temporary Federal registrars and I am Government bonds· and obligations. introducing a bill today to establish such Writing in Harper's magazine this This morning in the newspaper a rather a program. After examination of all pos­ month on the recommendations of the sensational news release reported that the sible remedies I am convinced that such Cabinet Committee on Price Stability Federal Government was in the process o~ a remedy will reap substantial gain in for Economic Growth, which is headed not only raisin g its gross bonded debt limit 1558 CONGRESSIONAL RECORD- HOUSE January 28 but was also actively engaged in raising the No; we did not approve .of the aCimin.; · President· Eisenhower in- his 1959 State of maximum interest rate which Government istration's tight money, high interest,. the Union message. A few days ·later, Edwin bonds might bear. This Government policy· and loose fiscal policies last fall,_and we L. Dale, Jr., wrote in the New York Times of continually cutting the price is as serious do not approve of them now. The in- · that Mr. NIXON was a candidate for the post a financial problem as the commodity stor­ of cha~rz;nan and that his supporters felt age problems and all other fiscal problems. vestigation report of the Joint Economic · that "a precise,· and · publicly known, ad­ • • • • Oommittee certainly found every factual ministrative role would help his chances for As an example, if the Federal Government and logical reason for disapproving these the Presidency in 1960." When his appoint­ was interested in selling wheelbarrows and policies and for putting a quick stamp ment was announced on February 1, the continually stated that while it was selling of disapproval on these policies. Times observed that this was "the closest he wheelbarrows today for $100, it would be sell­ Professor Galbraith, in the Harper's has come to formal executive power." ing the same wheelbarrow 3 months from . article I mentioned, has summed up the - Having welcomed the responsibility, Mr. now at $80, I believe it would be obvious · effect and the intellectual content of NIXoN cannot but welcome a scrutiny of the that no one would buy at today's price.· way he has handled it. It would be best, these policies very neatly and simply. no doubt, if this could be undertaken by a Everyone would wait until the 3 months had l;f anyone still has any doubt whether expired and buy at a reduced price. The_ neutral and nonpartisan obser.ver. It has bond sales procedures are doing exactly the tpe high interest policy is good for the been noted, however, that where Mr. NrxoN same thing. The Government is advising country, I recommend he read Professor is concerned, the supply of neutrals is _ that while today's bonds carry a 4-percent . Galbraith's article. I will put it in the limited. And he himself has spoken out interest rate that tomorrow's bonds will · RECORD at the close of my remarks. against the morality of such a posture on great questions. carry 4~ percent or higher. We employ a - Professor Galbraith's article analyzes most amateurish procedure in continuously Vice President NixoN's recommended · But most important, these are matters on cutting the price in an attempt to· sell our­ which, once presented, the reader can pass policies for dealing with inflation, un­ judgment for himself and thus correct for product. employment, economic growth, and so the bias from which so few of us are free. So if a distinguished Harvard econo-· on. But these are not personal policies; · The Cabinet Committee c·onslsts (in addi­ mist is right, if the investment bankers; they are precisely the same policies tion to the Chairman) of the Secretaries of" are right, and if a Wall Street reporter which the administration has been fol­ the Treasury, Agriculture, Labor, and Com-· lowing all along. Professor Galbraith's merce, the Chairman of the Council of Eco­ is right, then it follows that the Demo­ nomic Advisers, and (rather unexpectedly) crats in Congress are unwittingly doing analysis is, therefore, an analysis of a the Postmaster General. The executive vice the country a po_sitive harm by shilly-. policy of government; It is an analysis chairman is Mr. W. Allen· Wallis who is on shallying and sitting on the ·fence about of a whole cult, if not a culture. leave from his post as-dean of the Graduate whether we are going to scrap our party We could change the stage sets and School of Business of the University of traditions and join the Republicans on find· any number of high dignitaries of Chicago. Mr. Wallis' reputation among econ­ the side of high interest. Government playing the same role and omists is that of a conservative with a pred­ A few clear and certain statements giving the same performance in the· ilection for scientific exactitude. In a­ same play. If we changed the backdrop personality sketch published at the time of from the Democratic leaders that we are the second report, the Times described him not about to tamper with Woocb:ow : from Mr.. NIXON's office over to the mar-· as sharing with Mr. NIXON "the sort of in­ Wilson's interest rate ceiling-either to ble halls of the Federal Reserve Board. tellectual companionship that· enables.· each repeal it or jimmy it with some face­ and added a few character lines such to sense the mental processes of the other."· saving compromise~would definitely' as "We cannot put our hand in the fire The first report, according to the news­ take the speculative winds out of in-: without .getting burned," then we would papers, was drafted by Mr. NIXON, then re­ terest rates and -start them downward. find Mr. William McChesney Martin vised by Mr. Wallis presumably for perfection playing the same role in the same play. of technical and scientific content, and then This would help the Treasury sell longer· cleared by him with the other members.· term maturities-if it act.ually wants to No matter who may be playing the lead­ We may safely assume that the dominant. sell such maturities-under the present. ing role at the moment, it is always tpe role and responsibility was Mr. NIXoN's, interest ceiling, by putting an end to same play. It begins with a grave an­ s_ubject to the teqhn~cal . and profes~ioiial the expec-tation of the financial com­ nouncement that the hour of crisis is at· guidance of Mr. Wallis. · munity that by holding back their funds hand and one of the pivotal decisions of The first report--it was described as an history must be made. Then follows interim report-was releas.ed on June 29. for a week or so they will get a bigger Much the most comprehensive of the three,· ·bonus. Certainly we cannot blame the the same comedy routine, with the same jugglers, the same talking-dog act, and· it is a survey of the whole problem of inflation' people in the fuuincial community for and its control. It isolates the causes of' holding back under the circumstances. finally the same huckster selling for 25 inflation, 'deals with its consequences,. and: No man in his right. mind would want to cents boxes of popcorn, every one of· prescribes remedies. pay $1,000 for a Government bond today· which is absolutely and unconditionally · It is an exceedingly grave document-at expecting that Congress is going to take guaranteed to contain·a prize worth $1. times alarming. "It is the unanimous an action tomorrow that will cause the ~ The article from Harper's magazine opinion of the Cabinet Committee on Price follows: Stab11ity for Economic Growth that our price of that bond to drop to $900. . · economy is now at a critical juncture ur­ Yet, just think of it, now we ·are being MR. NIXON'S REMEDY FOR INFLATION (By John Kenneth Galbraith) gently requiring action to forestall infiation told that if we will take the ceiling off and insure sound and sustained economic­ interest rates, interest rates will come A persistent and serious problem facing_ growth .and progress." After citing .the evi­ down, by which logic the States and mu­ the United States is that of inflation. And dence for this condition of crisis, Mr. NIXON ' a determined and serious aspirant for the ~:~tnd his colleagues continue: "We are con­ nicipalities should all repeal their speed office of President is RICHARD M. NIXON. In fronted, in summary, with overwhelming laws so as to make traffic go slower. the nature of the case, our knowledge of evidence that we have arrived at a time of Then why do we shilly-shally and how presidential candidates will handle 1m-· decision as to the future course of our make fence-straddling statements which . portant questions, if elected, is almost en­ economy. • • • We face a serious threat, suggest one day that we are going to re­ tirely conjectural. We are· reduced to com- price increases · which not only would be· sist and suggest the next day that we are paring promises. . directly harmful to American families but. going to give 1n after all. Certainly the Mr. NIXON is one of the rare exceptions. would seriously endanger the healthy pros­ For the past year, he has been serving as perity now developing." These are strong issue is clear enough. It was very clearly Chairman of the Cabinet Committee on words. No man and no group had better stated by the distinguished chairman of Price Stability for Economic Growth-which opportunity to be informed. We owe it both · the Ways and Means Committee, the at this writing has issued three reports.· to Mr. NIXON and to ourselves, therefore, to gentleman from Arkansas [Mr. MILLS], Thus we are able to take Mr. NIXoN's meas­ take them seriously. . in his remarks in the· House last Septem-· ure on a matter of great and nearly universal Turning to the causes of this unhappy concern. ber 14 when he sa~d: state of affairs, Mr .. NIXON blamed the same In contrast with his early wartime service· forces that had been cited by President· THE ISSUE IN A NUTSHELL: TO APPROVE A BAD : With the Office of Price Administration, then Eisenhower in his state of the Union mes­ POLICY TO HELP THE FEW AT THE EXPENSE OF under Leon Henderson (of which he has sage, ( 1) the pressure for more public spend­ THE MANY never made a strong point), Mr. NIXON has ing, and (2) the implacable upward pressure· The is.sue then is this: If we remove the. recently sought ac~ively to identify himself of wages on prices. . He drew attention both marketable bond interest-rate ceiling now, with the problem of lnfl.ation control. A to the pressure on Congress for higher out-· we in effect tell the· administration that we· high-level committee that would deal ef­ lays and the strong tendencies toward in-· approve of their tight money-loose fiscal fectively with inft.ation-meaning continu­ creased spending by State, county, and local: policy mix. We do not approve it. - ing increases in prices-was promised by_ governments. Speaking. of the lnfiationary- 1960 CONGRESSIONAL RECORD- HOUSE 1559 effect of wages. he noted that recent settle· ing ''relative priorities" or ..relative scarci· a matter of highest priority. It 1s simply ments had advanced wages substantially, ties." So even this would be banned by Mr. that Congress resolve against infiation and and that pending or prospective settlements NIXON's reasoning. If only unregulated declare it an undesirable thing. Reasonable in many industries, including steel, could prices tell what consumers most want, or price stability would be made a specific goal result in wage increases of such magnitude aa what most needs to be produced, then any of Federal policy. Such price stability-the to lead to price increases. interference, even effective voluntary re­ protection of the purchasing power of the Mter this diagnosis, Mr. NIXON turns to straint, will obviously impair this vital func• dollar-has been a goal of Federal policy for those who condone inflation. He sets him· tion. generations. It has been proclaimed re· self uncompromisingly against them. Infla. However, it will surely be evident that Mr. peatedly and with passion. The new resolu­ tion is not harmless; it does not promote NIXON has involved himself here in an un· tion could not add much even in passion. economic growth; it is not inevitable. It fortunate logical contradiction. (One per· It would give the administration no power does inflict hardships on families with fixed haps !rom which his scientific and technical it does not now possess to fight inflation. It incomes; it damages average and below­ adviser should have saved him.) For he had would remove no obstacles. average families more than the well-to-do; already blamed the high prices of many Some have suggested that Mr. NIXoN was it breaks faith with those who have saved important products on the wage demands showing an interesting sense of novelty in and put their money in Government bonds, of the unions, and the resulting price in­ seeking to bring the technique o! the For­ retirement fundS, and like forms of saving. creases. If prices reflect the power or avarice mosa resolution to bear on domestic eco­ While resistance to inflation is bound to of the unions, as Mr. NIXON says, then they nomic policy. Instead of passing resolutions cause temporary inconvenience to some, do not reflect the priority attached to prod­ to warn the Red Chinese, we do so to in· price stability wm powerfully promote the ucts by consumers or their relative scarcity. timidate the forces of inflation. This origi­ welfare of all. (The report attributes more responsibility nality seems to be the maximum claim. All but overt inflationists, of whom there to the unions, and less to the corporations, Mr. NIXoN's second inflation remedy is cur­ are few, will agree that this is admirable. than I would, but that is another matter.) tailed Government spending and the bal· The danger is flatly faced. It is immediate If steel is high because of the union, then ancing of the Federal budget. Even higher and grave. There can be no retreat, no com­ it isn't high because of preference or scarcity as compared with aluminum. taxes, he sees as an inflationarr force. promise. The war on inflation has its costs; This familiar recommendation runs into these will be accepted in the interests of the Moreover, if prices reflect the power of the unions and the compensating action of the t.he familiar problem that some of the things overall good. for which higher expenditures have been At every point Mr. NIXON is firm and de­ corporations, then Government intervention does not have the damaging consequences sought-schools, housing, defense, law en­ cisive. forcement, conservation-are rather urgent. THE UNTOUCHABLES that Mr. NIXON and his colleagues condemn. For then such intervention doesn't interfere To this Mr. NIXON is indifferent. He describes Although inflation has never been con­ with the reading of priorities and scarcities­ the pressures !or increased spending as ir­ demned in more forthright phrases, such at.­ the unions and the corporations have already responsible. Moreover, there is no economic tacks-to speak rather formally-must be spoiled that. What intervention does is sub­ sanction for his view that higher outlays, if viewed in their ·historical context. Specifi­ stitute public regulation for what Mr. covered with some margin by higher taxes. cally, statesmen have been denouncing infia­ NIXON and his associates have condemned as are inflationary. · tion for some centuries. Often that has been bad private control by unions and companies. More important still, while a budget deficit all. Sometimes defiant speech has appeared In brief, Mr. NIXON condemns public in­ when the economy is operating at capacity to be a substitute for deficient will. As a terference on grounds which assume there can certainly be a cause of inflation, to bal· result, on this, as on few matters of social is no private manipulation of prices-but ance the budget does not cure the i·nflation. policy, the public has developed the habit of only after he has attacked private manipula­ That is because balancing the budget will not looking on from the words, however com­ tion of prices as inflationary. This is hardly arrest the wage-price spiral. Mr. NIXoN, pelling to the action. logical. And illogic apart, having conceded though he blames the spiral, makes no claim Having attacked infiation, Mr. NIXON moves the importance of wage-price movements as that budget-balancing would stop it. on to the action, but many will think with a cause of infiation and having ruled out Mr. NIXoN's third recommendation, urged a loss of power. direct restraint, Mr. NIXoN and his colleagues at considerable length, is that the Treasury He begins on a discouragingly negative must then find indirect measures that will be given authority to raise the rate of interest note. In fighting inflation, it is most im­ restrain the power of unions and corpora­ on . longer-term Government bonds. This portant that we do not use the wrong weap­ tions to raise prices. If they do not, this would enable these securities better to com· ons. Price and wage control, in particular, cause of inflation will persist. . So will infla­ pete with issues of shorter maturity. The are more harmful than peacetime inflation. tion. latter are described as practically the equiva­ While his condemnation of controls is as lent to money, and the Government's just eloquent as his attack on inflation-and of One indirect but rather formidable remedy for wage-price inflation is hinted at by Mr. cranking up the printing presses and rolling comparable length-the core of his argu­ out the greenbacks. ment is in a few words: NIXON. This is to break the power of the "Differences in prices reflect the priorities unions and dismember the large corpora­ In passing, it should be observed that Mr. attached by consumers to different products; tions so that they would not have power to NIXON is here being extremely critical of they therefore guide productive efforts • • • influence prices. At some time in the future, Treasury debt management by his own col· [they also show] the scarcities of different he promises to "examine and report on the leagues. Long before the limit on the in· raw materials, machines, and personal skills extent to which concentrations of power in terest rate on long-term issues became op. • • • If prices are regulated, they cannot labor and business contribute to inflation erative, the Treasury was making increased refiect accurately relative priorities of vari­ or impede economic progress:• . use of shorter-term issues. As a result, the ous goods and services • • • or the relative If something easy could be done on these average length of the maturity of the secu­ scarcities of the various means of producing lines to stop inflation, it would have been rities outstanding has been reduced sub­ goods and services. • • • The result • • • done long ago. When unable to think of stantially since 1953. waste, inefficiency, slowing down of prog­ anything else, liberals automatically con­ However, Mr. NIXoN is also greatly over­ ress." demn concentrations of economic power and stating his case. Short-term Government This ls a heavy indictment. However, lt call for more energetic enforcement of the paper can be turned into cash if there is raises some difficult questions-apart from antitrust laws. As a remedy for infiation, good reason for doing so. But the same is the purely tactical one of whether it is wise it is rather less pra~~ical than incantation true, in degree, of any other asset. And one to rally the forces to the ramparts and then which, indeed, it closely resembles. Poo­ thing that may cause people to prefer cash is read them a lecture on the weapons they sibly Mr. NIXON is thinking of legislation di­ the expectation of higher interest rates-the must not use. If wages and prices are un­ rectly designed to break up unions and large very thing Mr. NIXoN is urging. That is be­ touchable, then nothing directly can be done corporations. But he hasn't said so, and it cause h igher interest rates bring a decline in about the wage-price spiral which both the would be unfair to impute to him so drastic the capital value of the bond or other asset. President and Mr. NIXON hold to be a cause and unrealistic a program. There isn't any­ If such a decline is in prospect, some will of inflation. And unless some substitute ac­ thing else. try to sell first-which then brings down the tion can be effective, then inflation won't THREE REMEDIES price of the asset. One of the reasons the be controlled. Now come the recommendations. And . Trea-sury has had difficulty selling longer Comprehensive wage and price controls these are the real test of Mr. NIXoN's mettle. term bonds 1s that the expectation of higher are not now an issue. Neither Mr. NixoN Those who are victimized by rising prices interest rates has made them a rather specu­ nor his colleagues can imagine that there is in the manner he has so vividly portrayed lative item. the slightest chance of Congress soon enact­ will not expect this shrewd and experienced Mr. NIXON believes higher rates would help ing them. But some system of formal or public man to trifle with their troubles. sell the longer maturities. My own view is informal restraint on wages and prices in Unfortunately, when it comes to specific that a clear intention to hold rates stable key industries is a possibility-President remedies, Mr. NIXON sutfers a further and would do as much. But such dtlferences of Eisenhower has accepted the need in princi­ very severe loss of altitude. opinion are perhaps unavoidable. The 1m· ple by pleading repeatedly for voluntary re­ He offers three. The first-a marked curi­ portant thing is that they be debated with straint in price and wage setting. But 1t osity-had previously been mooted by the reasonableness and restraint and without ex­ such restraint worked, it would, like any Council of Econoxnic Advisers and proposed aggeration. What is less open to debate is effective regulation, keep prices from refiect- by the President. Now Mr. NIXON urges it as the effect of all this on inflation. CVI--99 1560 CONGRESSIONAL RECORD- HOUSE January 28 Higher rates on long-term- Government sufficiently to put aside enough [savings) low the budget policy just mentioned and bonds might help pave the way for a general from current income." He also explains the to remove the ceiling on the interest rate tightening of the supply of loanable funds advantages of maximum employment op­ on government bonds. Monetary policy, it and of interest rates. This would mean a gen­ portunity although without adding greatly should be observed, did not prevent infla­ eral curtailment of the demand for goods and to the information available to an unem-· tion in the years ·before that ceiling became services. If this curtailment were sufficiently played· man. "Much unemployment • • • operative. Mr. NIXON argues once more that severe, price. increases .would . be- arrested. .involves the hardships and lack of opportu­ to lift the ceiUng , will have the effect of But -this, precisely, is the . policy that has nity that we all associate with the word 'un­ locking people and financial institutions in- been employed ever since 1953. If it had employment'," but if a man can get a job , to their holdings of long-term bonds. . In worked-if it ha.d reconciled full employ­ promptly, it isn't so bad. future periods of tight money, interest rates ment, expansion, and price stability-Mr. Then Mr. NIXON returns to inflation. His will rise, the capital value of the bonds will NIXON's committee would never have been denunciation is now even more severe than fall, and then the bonds cannot be sold ex­ necessary. But we learned during the in his first report, and several new evils-­ cept at a capital loss. He still does not con­ period-although the lesson is still being de-. encouragement to speculation, distortion of sider that, given fiuctuating interest rates, bated-that an active monetary po.licy, as it ·business accounting, damage to our ability people will see the possibility of such 1s called, gets price stability .only at the cost .to compete in foreign markets-are added·. mousetrapping and be reluctant to buy the . of interrupted ·growth and recurrent reces­ ·He tells us again that "Resistance to rises in bonds in the first place. . sion. This was how we got price stability in the general price level is bound to cause There is no more. 1954 and again in 1958. · ·temporary inconvenience to some and to The judgment to be rendered would seem · For the rest of the time, most prices kept limit the gains of others, but • • • will to me clear. Mr. NixoN ·has done nothing. inching up. This was especially true of in­ ·powerfully promote the welfare of all." But Nor in seeking to persuade us. that he has dustrial prices where wage-price pressures .this time there is no indication how this re­ done something does he show a high regard operate. To keep unions and companies in, sistance movement is to be launched. Not for our intelligence. For anyone who re­ say, the steel or automobile industries from even his first three recommendations are re­ spects his fellow citizens could hardly ex­ putting up wages and prices, a recession has peated. Possibly he did not think very pect them to buy this blend of nothingness. to be pretty severe. The cure--unemploy­ much of them either. Perhaps it will be said in Mr. NIXoN's be­ ment, accumulating inventories, interrupted When this report was issued, an adminis­ half-as so often before--that this is a sub­ expansion-has no distinct advantages over tration spokesman said (one imagines with ject on which he has not yet matured. So the disease. Mr. NIXoN's blessing) that it was now be­ it may be. But even his friends will be lieved that the battle against inflation was forced to agree that this failure is the most DO-IT-YOURSELF POLICY being won. Expansion would henceforth be mature example of such immaturity. These are Mr. NIXoN's remedies--a congres­ emphasized. Officials were now "reasonably Let me add, also, that the finding of sional vote of censure on inflation; a warning optiinistic that the line would be held on the failure is my own judgment. Economics against spending, with public need regarded general price level." This was not quite 7 is an imperfect science. Anyone who claixns as irrelevant; and an increase in interest weeks after Mr. NIXON had cited "overwhelm­ that his economic judgmen1;;s are emotion­ rates, that, at .most, represents a continua­ ing evidence that we have arrived at a time ally detached, politically impartial and tion of the policy that he was asked to of decision as to the future course of our otherwise objective is hixnself suspect. But improve. economy." The decision hadn't been taken. I would strongly urge anyone who dis­ None .of ~these measures. touches the wage­ Perhaps it should have been. · On August agrees- with the .present judgment of Mr. price spiral. On that, Mr. NIXoN confines 22, 5 days after the second report, the De~ NIXON'S reports, or even suspects that he himself to explaining what should not _, be partment of Labor announced that the Con­ might, to get them from the White House done. Perhaps the most damaging reflection sumer Price Index had risen again for· the and read them thoughtfully and with care. on his judgment is the satisfaction he shows fourth consecutive· month and to an all-time with his .prescription: . "The ~ ~ • three high. All component groups went up. steps are direct defense.s aga~nst the present danger of excessive price rises." TheY' are CLEARER ANYWAY . iNADEQUATE PERSONAL EXEMP­ his response to overwhelming evidence that On October 25, Mr. NIXON released his TIONS FOR LOW INCOME RECIPI­ we have arrived at a time of decision. .third report, "MJ'I.naging Our Money, Our ENTS This was Mr. NIXoN's first report. The Budget, and Our Debt." During the pre­ :first of a series of further reports was re­ ceding week, the Bureau of Labor Statistics The SPEAKER. Under previous or­ leased by the White House on August 17. announced that the cost of living had gone der of the House, the gentleman from These offered a chance for Mr. NixoN to re­ on to another all-time high. The !'teel New Jersey [Mr. ADDONIZIO] is recog­ trieve altitude that had been lost in the strike, in which the issue was the effect of nized for 10 minutes. earlier document. wages on inflation, had passed its 100th day. Mr. ADDONIZIO. · Mr. Speaker, every­ Alas, this chance was missed. At the out­ This is a better written report than those that preceded it, and Mr. NIXON evidently one is well aware of the heavy tax burden set, in a memorable example of Federal prose, in the United States. Yet, the average the August 17 report describes itself as one had thought better about those building of several dealing with building-block ques­ blocks. But the clarity revealed a barren­ income earner usually has enough '"ons from which can be constructed answers ness matching and possibly exceeding that money left over after taxes to purchase a 11o broader public questions. This, if it can of its predecessors. Recessions or depres­ few luxuries, as well as convenient and be translated,-would seem to mean that Mr. sions-periodic interruptions in growth-are expensive household appliances. Even NIXON was putting anti-inflation policy on a accepted as a necessity of our life. The gov­ most of the individuals earning less than do-it-yourself basis. This turns out to be ernment should follow a passive fiscal role. average incomes can afford some of the *he case. Tax yields will fall during recession and some expenditures-unemployment com­ comforts of life in addition to bare neces­ "Thoughtful citizens," the report declares pensation, for example--will· automatically sities. This is made possible largely as With an air conveying information, "are rise. These automatic stab111zers are to be a result of the personal exemptions that concerned increasingly with such questions welcomed. But Mr . . NIXON is opposed to are·. allowed under tbe Feder~ individual as: Are continual price increases inevitable? affirmative action to offset recession or de­ If not, how can the general level of prices be income tax. The personal exemption pression by increasing public outlays ol' allows an individual to earn at least a stab111zed?" The report then asks its prin­ reducing taxes. The extra spending effect cipal question: "What do we really want from might come, or it might be allowed to per­ certain amount of income before an in­ our economy?" One answer to this question, sist, after the recession had passed. This come tax is appli.ed. Thus, the personal the reader will learn with manageable ex­ danger is worse than the recession. (The exemption has ·become i~portant for citement, is reasonable stability of prices. earlier Eisenhower policy under Arthur F. low-income recipients. I may add that Thus equipped with building blocks, the Burns was, incidentally, much more liberal. in my opinion the exemption is inade­ reader then goes on to construct his answers Then the policy of using the budget, in­ to the broader public questions. quate and should be raised to at least cluding a reserve of useful expenditures, as $800 and preferably $1,000. other building-block questions and an­ a positive instrument for fighting depres­ swers follow the same technique of supply­ sion was repeatedly affirmed.) . However, in the case of a family that tng the reader with knowledge that he al· The rest of the report contains nothing is burdened by heavy expenses beyond ready possesses while avoiding answers he new, and nothing old that bears usefully their control, as well as having a low or might find useful. It tells of the merits of on the problem of inflation. Mr. NIXON Fe­ average income, the existing personal ex­ an expanding economy, but postpones men­ peats that monetary policy, specifically a emption is so unrealistic as to work a tion of how such growth can be insured. tight money policy when required, is useful real hardship. This was :recognized Then, perhaps sensing some public anxiety for attacking infiation but he also adds that on the matter, Mr. NIXoN explains that "our it has serious shortcomings, This is not when Congress provided an additional economy has grown since the founding of the news since, as noted, it was these shortcom­ exemption of $600 for the blind and the Republic because we have had faith in our­ ings which led to his appointment· in the aged. The Congress has failed, how­ selves, because we have developed institu­ first place. ever, in providing this tax benefit to one tions that reward enterprise and efficiency, He makes no suggestion a.s to hQW the similarly situated group which also needs and because we have believed in progress shortcomings can be overcome except to fol- some special tax relief. These are the 1960 CONGRESSION:AL RECORD- HOUSE 1561 physically handicapped. Most of the of a costly nature. Whereas a healthy. IN DEFENSE OF AMERICAN individuals in this group are certainly individual can commute to and from INDUSTRY limited in their earning capacity. · They work by public transportation for a rela.. also must incur large unusual expenses tively low cost, the handicapped em­ The SPEAKER. Under previous order in connection with or as a result of a dis­ ployee must often travel by taxicab or of the House, the gentleman from Penn­ ability. In fact, a handicapped em­ a specially equipped automobile. Even sylvania [Mr. VAN ZANDT] is recognized ployee may very often have to incur if the taxpayer is in a low-income group for 10 minutes. heavier medical and other expenses a8 a he must usually obtain all the power Mr. VANZANDT. Mr. Speaker, with result of his handicap than an older per­ equipment such as automatic transmis­ each passing session of Congress the son who is over 65 and who works be­ sion, power steering, power brakes, and verbal heat generated within the House side him. Yet the older person gets an other special equipment that he would on the subject of foreign trade by both additional personal exemption-a total not otherwise obtain. In fact, he might the liberal traders and the protectionist of $1,200-for himself, but the handi­ not have even purchased an automobile seems to increase in intensity over the capped person is allowed an exemption at all at his level of income. vital issue of foreign trade competition. of only $600. Other extraordinary costs of a handi­ This creates a healthy situation be­ capped person might include that of re­ cause a problem of such concern to the Equity and human consideration re­ American people and to their industries quire that the additional personal ex­ ~odeling his home, such as providing emption, which has been so wisely pro­ ramps or larger and more accessible requires continuous and effective deliber­ vided by legislation to the blind and doorways or archways. The individual ations if an honest and just policy for aged, should be granted also to the may have to hire extra assistance or at­ U.S. import-export policy is to be for- handicapped. Furthermore, I believe tendance to care for him. Also, various mulated. . that if the handicapped individual is sup­ types of insurance may carry higher pre­ Furthermore our debates here simply ported by his parent, the additional ex­ miums. reflect to a great extent the :floor actions emption should be available to the par­ It would be difficult for me to see any at various meetings and conventions of ent. justification in allowing the present spe­ industrial, labor, and agricultural or· cial tax benefits to the well-to-do and ganizations. It certainly does not require much Several months ago, for instance in imagination to realize that the physi­ prosperous businesses at a cost of bil­ lions of dollars of revenue annually at San Francisco, the giant AFL-CIO had cally handicapped are limited greatly in some differences of opinions on this their earning power. A disabled person the same time that we deny the handi­ capped an additional personal exemp-. timely topic. But keeping in tune with may often have to undergo long periods the changing competitive conditions, of rehabilitation during which time he tion. For most of the handicapped tax­ payers or the parents· supporting them, they boldly stepped out and modified earns little or no income. Quite often their traditional free-trade policy and prejudice and discrimination prevent the the additional personal exemption would amount to a tax saving of only about unanimously passed a resolution calling handicapped from finding suitable em­ for tighter escape clause administra· ployment. In many cases they are con­ $120 annually. Compare this, for exam­ ple, to the substantial tax savings reaped tion. sidered for employment only after the Similarly, the U.S. Chamber of Com­ physically more able are placed; then by some oil tycoons as a result of the percentage depletion allowance. Or merce, at its annual meeting in April they are laid off more readily than the 1959, reviewed and then revised its person not handicapped. As a result, make a comparison with the substantial. savings a financier gets when he pays longstanding policy of slavishly·support­ handicapped persons usually suffer ing the Department of State's one· for longer periods of unemployment than the tax on capital gains at a rate of 25 per­ cent instead of 91 percent. Another such all and all for one world program. As average worker. a result it is reported that the cham­ Many of the individuals who have had special benefit is the dividend tax credit. In 1957, the latest year for which data ber of commerce is now in the process moderate incomes before their disability are available, the 207 taxpayers with in­ of developing a fresh approach more will no longer be able to perform the comes over $1 million reported a total in keeping with the views of its b~iness same duties when handicapped. In of dividend tax credits of over $8 mil­ members than the views of the bureau· many cases this means a shift to a job lion. This represents an average tax crats. or occupation for Which the person has saving of about $40,000 for each of these Various textile groups representing had no previous experience. The scale taxpayers. Although there are other both industrial and labor components of pay will very often be substantially special benefits which I could point to have also gone on record-by-resolution lower. · in the tax structure that give far more vigorously protesting the State Depart­ As I indicated above, the handicapped substantial benefits than the $120 or so ment-inspired imports produced under worker not only is severely limited in tax saving from a $600 personal exemp­ sweatshop conditions which, did they his earning power, but must incur heavy tion ~ the handicapped persons, I shall exist in this country, would be in con­ extraordinary expenditures as a result of mention only one more. That is the stant violation of our laws in addition to his handicap. In many cases, the in­ use of expense accounts to reduce the the basic codes and norms of organized dividual must purchase various devices taxpayer's Federal income tax. It has labor and industry. such as braces, wheelchairs, and so forth been conservatively estimated that these The Ladies' Garment Workers, the to help him move from one place to an~ expense deductions amount to between United Hat, Cap and Millinery Workers other. These aids are quite expensive. $5 billion and $10 billion annually. They the Textile Workers, and the forme; I understand, for example, an artificial reduce revenues from $1 billion to $2 free-trade Amalgamated Clothing work­ arm or leg costs from $300 to $600. An billion annually. How can it be just ers, to mention a few, are among the orthopedic support may cost from $75 to or equitable for individuals on expense aroused labor unions who have experi­ $225. Orthopedic shoes range from $65 accounts to fill the plush restaurants enced the cutting edge of Hong Kong to $175 with additional initial costs for night clubs, and·country clubs and othe; competition and the so-called voluntary lasts and rubbers to protect the special expensive places of entertainment and quotas of Japan. shoes. A wheelchair may be priced from get a tax deduction for their expenses, The president of United Automobile $100 to $450, with $200 as the average and at the ...,arne time deny the poor, Workers' local 239 in Baltimore com­ for a paraplegic. Moreover, the original struggling handicapped worker, or the plained bitterly, to no avail, about the cost of special devices is r..ot the end of person who supports this disabled per­ 35,000 foreign auto imports which poured these additional costs. The equipment son, some small consideration as I have through the city port during the first 5 must undergo regular repair and even­ proposed today? To do so would be months of 1959. I do not have subse­ tual replacement. highly inequitable and not in accord with quent figures, but I have no doubt that Braces, crutches, and prosthetic de.;. the American way of life. Therefore, in keeping with the national picture the vices cause unusual wear and tear on let us not delay action any longer in get­ imports are now substantially higher. the clothing. Thus, clothing must fre- ting our tax laws amended so as to pro· The UAW .official translated his con· quently be provided with costly extra lin· vide additional personal exemptions for_ cern into the most meanirigful of terms ing or may have to be tailor made. handicapped income earners, as well as which no one could misunderstand: For the handicapped worker, the form for parents who must support handi­ Over 300 General Motors workers in of transportation to and from work is capped individuals. Baltimore were laid off and an additional 1562 CONGRESSIONAL ·RECORD- HOUSE January 28 1,500 were working less than 40 hours a the sewing machine imports from other bor surplus problems· in Pennsylvania; week as a result of these imports. Their countries and one comes up with a more and secondly, because I believe every equivalent represented work for 2,500 significant amount of market loss than nation, as with individuals, should de­ men for 13 weeks on two full 8-hour even watches, or slightly over 75 percent. velop to the maximum of its capacity. shifts, the official stated. You will hear little protest from these I confess to my complete bewilder- We in Pennsylvania share their anxi- industries today for the simple reason ment, however, on each occasion when ety and the concern of other newly af- they have nothing left with which to our well-intentioned theorists, trying fected industries. We bleed industrially :fight. The individual companies either ever so hard to make the facts fit their and we suffer economically with each dissolve or become agents for the for- preconceived concepts of world planning, layoff, with each ton of coal that we are eign manufacturer, such as the White prematurely press upon an agricultural not asked to produce for our customers. Sewing Machine Co., of Cleveland, or economy in Asia or Africa the complexi- In 1947 we contributed a record 631 they farm out their ;manufacturing like ties, the dynamism, and heavy responsi­ million tons of bituminous coal to the the Hamilton . Watch Co. to foreign bilities of a modern industrial system. growing industrial might of the post- interests. These economic experiments in world­ war period. In 1949, however, imports The past 2 years have seen momentous ly togetherness, eagerly launched from of residual fuel oil, a by-product or re- changes in American foreign economic Washington with greater frequency than maining residue of oil refinement, policy. Yet, even to a casual observer, rockets from Canaveral-and with less ' launched their initial offense and 75 mil- a strange hush has descended upon the accuracy-stem from. one fixed, single­ lion barrels entered the United States. ranks of the liberal traders. Can it be minded commandment. . \ Within the next 2 years bituminous coal that their long-championed cause of im- All nations are to be made in the image production had dropped off by 193 mil- port promotion has finally been achieved and likeness of America, with their con-. lion tons, to 438 million tons. Thus. and they rest content? Or is it that sent if possible, without it if necessary. foreign residual oil had its foot in the they see in their handiwork the creation · The result is complementary. Na­ door. Newly-affected, import-injured of a Frankenstein which, beyond control, tional .economies are. replaced by scores industries take note: Since 1950, 1.3 bil- returns to devour its creator? of competing economies existing in vari- lion barrels of residual oil have shoul- No longer are we entertained by a ous degrees of industrial indigestion. dered into our domestic market, the chirping chorus of easy arguments of Dutifully, mother America generously energy equivalent of more than 310 mil- "dollar gaps," "trade not aid," "imports opens her harbors to the imports from liori tons of bituminous coal. · increase exports," "lower unit production her foreign-aid offspring and at the same Parenthetically, our American flag costs," and other melodies marshalled time finds her own exports reduced. tankers, which in 1946 carried 76 percent to bolster timeworn theories of acad- Suddenly, it is discovered a surplus labor of our oil imports, today carry only 4 emicians in Government service. situation confronts us; not surplus in the percent because of foreign competition. A few of the remaining spokesmen for sense that there are more workers than But coal and textiles have many new the discredited free-trade philosophy are there is work that could employ them, allies today among a most diversified today, however, brandishing a shiny new but more accurately that there is less group of industries: machine and hand economic theory which upon reflection wor.k. remaining than there ar~ workers. tools, steel mill products, electrical power runs at cross purposes to their prior con- The distinction is all":'important because equipment, vegetable growers, tuna . cepts. · The theme of the day, we are our problem. in Pennsylvania is not the . fishermen and:tuna ·boatmakers, sport- · now told, is "Overseas, ho." Having · result of nature's indifferent distribution . ing arms, chemicals, and cameras, to promoted import-export policies in the of excess· population but rather the man­ name a few. past which are now playing hayoc with made .and calculated accumulation of Three out of four watches now sold in the most integrated market ever de- errors in Washington. the United States are foreign im}i>orts. veloped and into which they have intro- The liberal trader, both public and pri­ .. In more meaningful terms, 10,000 former duced highly disruptive commercial ele- vate, is fascinated by industrial develop­ watchmakers were added to the ranks ments, they now suggest a remedy for ment progra:rp.s abroad. This is fine. I of thousands of workers who, year in the problem which they themselves deny too am ·interested up to-but not one and year out, must adjust and readjust exists. It would be an amusing situa- groaning dollar beyond-the point where ·. to the life of a butterfly and flit from tion indeed if it were not so deadly seri- the United States suffers an investment job to job each time the foreign manu- ous a game. leakage which under normal conditions facturer takes over an additional Amer- On the one hand the liberal-trade would flow into our regular growth at ican market. As industry has in self- champion claims that we are not priced home. I have the feeling that his new­ defense been forced to diversify its prod- out of the marketplace. Yet on the found investment theories may enlighten ucts in this game of international cat · other hand he now promotes foreign him with experiences which may make and mouse, so has the worker been forced private investments in plant and equip- our arguments more significant, if not to discard one skill after another with ment to recapture the markets which more acceptable, to him in the future. each successive job as he reluctantly re- he denies we have lost, and to protect I have noted this in the attitude of the linquished his trade and perhaps more those markets which he denies we are American exporter. A newcomer to the remunerative employment to his coun- likely to lose. The horris of a self- hardship of shrinking foreign markets, terpart abroad. imposed dilemma are never comfortable. he is.more sympathetic these days to the The cold figures released by the Labor Even more amusing is a second im- plight of the domestic sales managers . Department on total employment stimu- plicit byproduct of the current slogan, · and appreciates. the similarity in their late an artificial temporary warmth, but requiring reflection for all self-respect- m"Qtual problems. In addition, I suspect do not begin to answer the workingman's ing free traders: That with the current pe belatedly but rightly recognizes that basic need of job stability and security. turn of his theory, ·he himself has turned his interests are more identified. with · For the answer one must look to the toward protectionism. those of the domestic manufacturer artists in the State Department who, in Recognizing that former U.S. markets whom he represents than with the im­ their zeal to paint miniature Americas are falling in Asia, Africa, Latin porter who has hoodwinked him over the throughout the world, each with its America, and especially in Europe-yet years with glib assurances that "If you built-in Pittsburgh, Detroit, and Des reluctant to accept the responsibility for want to export you must back my call for Moines, unwittingly deface the originals the attending circumstances which led more imports." beyond recognition like a child who just· up to such an impasse-he now pushes Now that the problem has surfaced and discovered that his $5 billion allow- hard for U.S. industrial development in is recognized for what it is, I have a ance will actually buy him a genuine these areas. American private capital strong suspicion that the exporting man­ chemistry set for his very own with invested abroad today provides about 5 ufacturer at last recognizes that import­ which his inexperienced hands may million jobs for foreign employees in and ers and exporters are contesting and not gamble. resulting from facilities established supplementing agents for each other's Let us look at another. industry--sew- overseas at a cost of about $28 billion. markets. ing machines. Japanese sewing ma- I am keenly interested in industrial Let me now examine briefly the case chine imports . Jumped from 64,000 in development programs: First, because of for protecting American industry, a 1950 to 1 milli-on in 1958. Add this to our area redevelopment effor-ts and Ia~ cause I have consistently defended since 1960 . . CONGRESSIONAL RECORD-· HOUSE 1563 I first entered the House when there this behavior in the face of one type of PANAMA CANAL ZONE, NOVEMBER were but a few of us to defend it. To the competition contrast considerably with 3, 1959. MOB VIOLENCE-SUPPRES- ' · liberal trader, I realize we protectionists the other? SION OF NEWS IN THE UNITED are a rather low form of life, sort of re- . Most certainly. Furthermore, is it not STATES actionary creatures who must be toler­ strange that despite our recognized in­ ated and with whom, somehow, they dustrial advancement there is no great The S~EAKER. Under.. previous or­ must coexist. We have two left-excuse rush by foreign producers to install der of the House, the gentleman from me-right feet, . they say, which are out branches and subsidiaries at every op­ Pennsylvania [Mr. FLOOD] is recognized of step with the times, and we yearn­ portunity in the United States? We for 10 minutes. ingly look back to the twenties rather note the very opposite. Plants are being Mr. FLOOD. Mr. Speaker, I ask unan­ than forward to the sixties. built and equipment installed at an ever­ imous consent to revise and extend my What I say now I am sure will come increasing pace by American companies remarks and to include · extraneous as somewhat of a shock to my liberal­ in foreign countries where the transpor­ matter. · trade proponents. The protectionist tation, availability of skilled workers, The SPEAKER. Is there objection earnestly seeks a high volume of foreign power, raw materials, and other indus­ to the request of the gentleman from trade which he believes lies in the main­ trial requirements cannot begin to com­ Pennsylvania? tenance of a high level of. production, pare with potential industrial develop­ There was no objection. employment, and wages in the United ment areas available in the United Mr. FLOOD. Mr. Speaker, in my ad­ States. One hears nothing. of this side States. dress to the House on January 13 I em­ of the protectionist's case, because the Why, then, are the choice American phasized the failure of the mass media free press, like the freetraders, grudg­ locations which desperately need indus­ of the United States to present ade­ ingly give currency to this view, feeling try, forsaken in favor of the foreign quately the tragic events at Panama on as they do that it might break down the which, by comparison, can contribute so November 3, 1959, as savoring of a_con­ pat image which they have created for little? spiracy of silence. Moreover, this case us but into which we do not quite seem The answer is there for anyone who has illustrated a control of the press in to fit. will see. favoring suppression of proper coverage Furthermore, the trade protectioni~~ Other countries have not done for la­ of communistically connected activities believes that import competition, which bor and agriculture what we have in this on the isthmus that a1fect the security of derives its competitive advantage from country. Wages abroad are much lower the Western Hemisphere, including the lower wages abroad, no longer o1fset by and with the modern machinery in­ United States. equally low productivity, represents a stalled in recent years, lower production Fortunately, the press of the Republic clearly imminent threat not only to in­ costs result. That is the magnet that of Panama has covered the November 3 dividual domestic industries but to the draws our companies. attelllpted mob invasion of the Canal stability of the economy as a whole and, Where, in Asia, for example, will you Zone extensively. Profusely illustrated therefore, to the realization of a maxi­ find the economic and social conditions with pictures of mob actions in areas that mum level of foreign trade. But where prevailing which in America place re­ are normally peaceful avenues, the story to turn? sponsibilities on our industry just as real is truly shocking. '· Complacent U.S. Government officials and just as demanding as any legal re­ Thoughtful residents of the Canal dismiss the complaints of individual quirement? Labor and industry in the Zone and Panama have sent me many companies who suffer diminishing ma-r­ United States recognize the rights and newspaper clippings concerning that kets to imports by the ready answer, duties which are required of them in an tragic incident and subsequent events. "You're only one company; the prob­ enlightened society. They both con­ They are too voluminous for all to be lem has to be industrywide," not tribute to humanitarian causes, to civic, read by busy Members of the Congress, realizing that their apathetic. atti­ cultural, and educational projects. And but they and future historians should tude significantly contributes to mak­ with each contribution of time and know that this record of recent isthmian ing it just that-an industrywide prob­ funds to worthy domestic causes which violence does exist. It is available in the lem. It is then too late, as the sewing raise our standard of living, we become Library of Congress and other libraries machine, fishery, and watch industries just that much less competitive with the subscribing to Panama newspapers. know, since they were picked off, one by foreign producer. In order that the real nature of the one, in their field of industry. The protectionist in America realizes November 3, 1959, isthmian mob violence By and large in the early days of the the cumulative result of these many fac­ may be better known and easily avail­ trade program, the protectionist sup­ tors. I believe a few discerning liberal able to editors, writers, and students, I ported the trade agreements concept. traders are beginning to understand our include major news stories from leading But what we have today and what we concern, at least in mind if not in heart. papers of Panama as part of my were told then are totally dissimilar. The protectionist fears, in short, for the remarks: Frankly, we have more and more agree­ welfare of our industrial base, the well­ [From the Panama American, Nov. 2, 1959) ments, and less and less trade. spring, the prime source of our economic ZONIANS AWArr NOVEMBER 3 DEVELOPMENTs-- Mr. Speaker, we of the protectionist progress. He sees in the excessive dis­ MIXED PREDICTIONS . ON LIKELY RESULTS OF persuasion submit in short that we are persal of our industry to all corners of BOYD'S VISIT simply not iil the running under the ex­ the globe a dissipation of strength and a An unofficial poll of Canal Zone opinion isting international competitive condi­ rising vulnerability to foreign competi­ on the likely events tomorrow in connection tions that confront us. Every day in with the invitation of Deputy Aquilino Boyd tion. and Prof. Ernesto Castillero to join them in the United States our domestic produc­ As a man insures himself on behalf of a flag-bearing visitation into the Canal Zone ers compete with each other, neither his family, so the manufacturer and tomorrow, brought contrasting comments seeking or asking for quarter. It a sale producer seek protection for their prod­ today. or bid is lost to another American com­ uct on behalf of their industry. It we On only one point was there unanimity: petitor, the loser tightens his belt, re­ provide $40 billion per year for the pro­ the Canal Zone community hopes there will views his estimates, cuts here and there, tection of the political integrity of our be no trouble or violence. and makes preparations for the next job. Boyd and Castillero have repeatedly de­ borders, it is in keeping with the same clared recently that their call is specifically Why is this not so with foreign compe­ rules of self-preservation to protect eco­ for a peaceful demonstration, and that all tition? Why all the fuming by the do­ nomically the means of our livelihood Canal Zone regulations must be obeyed. mestic producers, many of whom have Castillero has said that any demonstrator stopped submitting bids on oversea which make our way of life worth de­ who gets into trouble with the Canal Zone projects and do so only halfheartedly fending militarily. It requires slight law will not get any sympathy from him or here at home when they find one or sev­ mental e1fort to see the transition from Boyd. eral producers from abroad also bidding? one form of protection to.another either Boyd has conceded that on such occasions By and large the U.S. manufacturer does of ·military to economic, or of foreign there is always some danger of hoodlums infiltrating the movement, but he does not not have the reputation of a crybaby markets to domestic. think it will happen tomorrow. who, the minute events go against him, Let us hope that the liberal traders Some Zonians said that regardless of in­ tosses in the "crying towel." Does not will wake up and help find the way. flammatory sentiments expressed in the past 1564 CONGRESSIONAL RECORD -HOUSE January 28 by Boyd, they belf.eve he now seeks only a in his press conference last Prlday, Boyd demonstrators sitting down in public places. peaceful demonstration . tn amrmation of stressed the peaceful intent of his move In their statement last week, Boyd and Cas­ Panama's claims of sovereignty over the zone and said the invitation was for his country­ tillero said their invitation was addressed to and her desire for greater benefits from the men, even for a short while, to go peace­ all Panamanians generally but emphasized c·anal. fully into the Canal Zone carrying a flag that the response would be up to each per.son The National Government of .Panama has or displaying it on their vehicle. He said: individually, rather than urging an organ- - taken no position on the march. There has ..This is not a call to violence. We don't ized, mass demonstration. been some comme.nt, chiefly against the want to provoke disturbances, nor to stir One school which has always been at the project, by columnists and in editorials. up seditious marches, nor mal intentioned forefront of agitation in Panama 1s the Other observers point out that though it demonstrations.• National Institute. whose buildings border is obvious that the invitation of Boyd and · Boyd said he and Castillero would make on the Fourth of July Avenue boundary line. castillero .has not gained support as a their own zone visit during the morning One usually well informed Panama source broadly based movement, it takes only a hours. reported last night that some of the institute handful of persons to create planned dis­ boys were planning to show the .flag ln the order. [From the Panama Star & Herald, Nov. 3. Canal Zone today, but whether it would be These people say that an incident of vio­ 1959] an organized march was not known. lence could be provoked regardless of the Boyd yesterday stood on his press con­ present intentions of Boyd and Castillero. ZONE ALEKT AS REPUBLIC OF PANAMA FETES ference statement that he and CastUlero They hark back to a statement by Cas­ INDEPENDENCE DAY-NATIONALISTS CALL FOR would enter the canal Zone some time be­ tlllero .in a Panama dally some months ago SHOW OF FLAG TODAY-SITUATION RECOG­ fore noon today to display the tlag. But he NIZED AS POTENTIALLY EXPLOSIVE DESPlTE in which he said that some incidents of still declined to say how. where or when. violence in the Canal Zone would be a good PROTESTATIONS OF PEACEFUL INTENT The two politicians contended last week idea to draw the attention of people abroad As Panama entered into the celebration of that under existing treaties Panamanians to Panama~ claims and aspirations. its 56th Independence anniversary today, an have the right of free access to public thor­ They also recall that some time ago, in air of alertness pervaded the neighboring oughfares in the canal Zone. There are connection with the movement-then canoo. canal Zone where a show of the tlag has been provisions in the Canal Zone eode and in a "peaceful 1nvaslon"--Gasti11ero suggested called for by Panamanian nationalists. the traffic regulations, however. whlc!h gov­ that Panamanian demonstrators take over Despite protestations of peaceful intent by ern the behavior of persons ·whlle in. the Balboa .Stadium and .sit on the steps of the two men who have proposed the display. Canal Zone. These deal with loitering, the administration building. everybody recognized that the demonstration vagrancy, disorderly conduct and breach of One Zonian said: "Those who ·planned was potentially explosive. The general feel­ the peace. among others.. There is a require­ this movement will see· to it there is some ing was that a single person bent on creat­ ment that organized groups of more than violence, since drawing world attention to ing a clash between Panamanians and Amer­ 60 persons or caravans of more than 15 au­ themselves and their ideas is the avowed icans would have a made-to-order situation. tomobiles require a permit from the chief purpose of the demonstration. There was no show of ofD.cial alarm 1n of police. "If there is no international incident, the Canal Zone. Questions on what special (In answer to a question, Canai Zone ofll­ their mission will not have been accom­ measures were being taken today. brought clals said that the immunity from arrest plished." the terse answer from 13alboa .Heights that which members of the National Assembly Today, as previously, canal otlicials would normal traftic control and normal disciplinary enjoy in Panam.a does not carry into the have nothing to say on the matter. measures would be in effect. Caribbean com­ Canal Zone. Boyd is a member of the na­ Unofficially, it is understood that Canal mand headquarters, asked if troops would tional assembly.) Zone police and other law enforcement agen­ be on the alert or on special duty today in Generally it was felt that most of what­ cies will maintain their usual control of the zone, replied: "We are here at the call ever activity develops in response to the traffi.c, and usual disciplinary measures for of the Governor.'' Up to yesterday afternoon, Boyd-Castillero appeal will occur during the persons who commit .infractions of Canal Panama had not been placed off limits to morning. Th!s was indicated by Boyd. him­ Zone laws. mmtary personnel. The feeling among civil­ self in saying he and C8Stillero would enter One employee not engaged in this kind of ians was to stay out of Panama, at least for the Canal Zone before noon. work pointed out that at no time do police today. It will be during the early morning, also permit loitering around .or trespassing in There was no doubt, however, that the that there wm be the greatest massin,g of buildings in the jurisdiction. Canal Zone, even while making no open dis­ people in Panama City. This will be for the On every hand, the word today seemed play of security precautions, was ready for traditional salute to the nag, which wlll to be to make every effort to avoid an inci­ any contingency that might develop during take place at 8 a.m., opposite City Hall ln dent or clash of any kind. the day. Several people said that if the intent of Cathedral Plaza. Students and citizens will Aquilino Boyd and Ernesto Castillero gather to watch President Ernesto de la. the visit is truly peaceful, there will be no Pimentel, National party leaders, said last Guardia, Jr., raise the national Hag a'top trouble unless a drunken person starts some­ week they have invited Panamanians to thing. the City Hall while the national anthem is enter the Canal Zone today, afoot or in cars, sung by the massed spectator.s. Another said one over-excited teenager carrying a Panamanian O.ag. They disclaimed would be all that was necessary to start an (Last Saturday, when a defect was dis­ any call for an organized demonstration or covered in the pulleys for the ropes to hoist unfortunate chain of events that could lead march into the zone. They insisted that it is to violence. the flag atop the three-story City Hall. Pan­ to be a peaceful gesture of .reassertion of ama City officials obtained the services of "I just hope nobody gets hurt, especial­ Panama's sovereignty over the Canal ZoneA ly no young people," a mother said. the Canal Zone fir-e department's extension­ But other than their peaceful intent. they ladder truck to make the necessary repairs A father said he didn't think anybody could give no assurance that their call might quickly. The 'fire truck rode into the city would. "In fact,'' he added, ••r think there'll not result in trouble. be no more hoodlum trouble than on a clear How many Panamanians planned to an­ under escort of the Panama national guard.) day at the height of the mango season." swer the Boyd-Castillero appeal no one could A parade, which annually attract;,; thou­ Other Zonlans stressed that the Panama telL Traditionally, Panamanians decorate &ands of spectator.s, w.Ul follow immediately :flag has always tlown conspicuously on the their automobiles with .small Panamanian after the salute to the flag. The .route of Canal ZOne on November 3 and there's no flags, or-children especially-carry them march will be from Cathedral 'Plaza to Ave­ reason why it shouldn't do so this year. afoot for the November patriotic holidays. nue A, thence to First Street, Bolivar Plaza, Another Zonian 'Said it seemed to him In years past, many have entered the Canal the Presidential Palace, B Avenue, ·the Lot­ that Boyd is making a great stir over sov­ Zone particularly during the parade hours tery Plaza. and Central Avenue. The parade ereignty when in fact no issue exists. He when the main thoroughfares are dosed to will dlsband .at Cinco de Mayo Plaza, op­ observed that the United States has always traffic. posite the railroad station. been entirely content with rights "if it were Indications yesterday were that there The rest of the program :is devoted to om­ sovereign" clause of the 1903 treaty. would be no interference with this type of clai ceremonies and sports events. mainly. Several Zontans deplored the efforts to set activity. Several cars flying the Panamanian In the evening, there will be a fireworks dis­ Panamanians and Zonians against each flag from radio antennae and other con­ play at the Panama Yacht Club on the sea­ other. venient pl-a.ces circulated freely in the canal front drive which runs past the American One Zonian reported he thought he saw Zone yesterday. Embassy omce building. several demonstrators on Tivoli Avenue yes­ What worries everybody is the possibility The ·patriotic celebration will extend terday afternoon. Some groups were stroll­ that groups of hot-headed elements might through November 4-Flag Day-which ing up and down, holding Panamanian flags seek to make a show ,of defiance or play the marks the anniversary of the ftrst publlc higher and in a stiffer manner than is· cus­ role of heroes in the Canal Zone today­ display of Panama's fiag the day atter the tomary during the usual annual observ­ thus giving rise to an incident that might country proclaimed its independence tn 1903. ances. generate widespread trouble. The day•s principal event wi.U be the .Flag Some cars going through the zone to the Among these groups are students. The Day parade. scheduled to start at .9 ·:a.m., interior today were flying Panama flags, but original call by Boyd and Castillero last July from Avenida Peru and 34th East Street. observers thought the proportion was less specifically included students. It was billed The route of march will be the entire length than in other years. as a peaceful occupation of the zone with of Central Avenue to the Presidential Palace. 1960 CONGRESSIONAL RECORD- HOUSE 1565 At the invitation of Panama oftlclals, a con­ Tight-lipped Canal Zone authorities officer's helmet was smashed and his head tingent of the U.S. Armed Forces will march plainly put the blame for the affray squarely cut. They were sent to Coco Solo Hospital in the November 4 parade. on Boyd. for first aid treatment, but were able to re­ On the Panamanian side of the frontier turn to duty when needed. the demonstrators, many of them too ex­ (From the Panama American (Canal Zone). One firefighter on the Atlantic side was Nov. 4, 1959] cited to give a coherent account of what bruised by rocks but did not require hospital they were doing there, insisted yesterday treatment. ARMY GUARDS CANAL ZONE BORDER-120 HURT that zone authorities got rough first. Among the Canal Zone law-enforcement IN DAY OF ROCKS, BAYONETS, TEAR GAS, The demonstrators mocked the Gis guard­ officials who required first aid were Police CLUBS ing the zone with a fence of bayonets with Chief Darden, and the Chief of the Civil A gunmetal calm brooded over the isth­ cries of: "We might as well be in Russia." Affairs Division, Henry L. Donovan. They mus today as combat-ready GI's maintained There were many less printable epithets. were hit by rocks. their positions behind barbed-wire bar­ Potter stressed today that if people from Injuries to other policemen ranged from ricades along the Canal Zone-Panama the Republic had just come over into the br.oken ribs to lacerations, bruises, and frontier. Canal Zone peacefully carrying flags they sprains. They were under orders to preserve order would not have been bothered by Canal Those hurt on the Pacific side were: in the zone after history's worst frontier Zone police. Sgt. Robert Engelke, Sgt. James A. Mar­ violence between the zone and Panama. "The · group that started it," he said, chuck, Sgt. E. J. Husum, and Policemen At least 120 persons were wounded yes­ "spread from a mob along the border. Their AI Zon, D. S. Heilman, David L. Bishop, Rob­ terday in a day-long fracas which caused disorder could not have been permitted, be­ ert W. Blades, Arthur L. Blystone, Herschel President Eisenhower to observe at his cause if it had been, it was apparent that Dempsey, Robert E. McBride, Henry Perry, Washington press conference today that ex­ the rest of the mob would follow (into the Daniel E. Harned, Fred E. Mounts, E. V. citable extremists in Panama and other zone)." Amason, Paul V. O'Donnell, Anthony Mala­ Latin American countries are behind the Potter said today he had been apprehen­ gutti, R. J. Tomford, Gardner Harris, Rich­ numerous instances of anti-American mob sive for some time that the demonstrations ard D. Meehan, Robert E. Lee, and R. M. action in the area. scheduled for yesterday would bring disor­ Brome. Many of yesterday's demonstrators ap­ der on the Canal Zone which he in his of­ Six Panamanians arrested in Ancon during peared fiercely anti-American. ficial capacity would have to control. yesterday's rioting fa,ced Balboa Magistrate Civilians and military alike on the zone "The law is very specific," he said today. John E. Deming today. Five were charged are technically under Army orders till Gov. "An act of Oongress charges me with re­ with disturbing the peace, one with simple William E. Potter deems the tension l).as sponsibility for the security and protection drunkness. relaxed suffi.ciently to withdraw .law-enforce­ of the Canal Zone. One . was a student, Ezequiel Gonzalez ment responsibility from Quarry Heights' "This movement had received so much Nuiiez, 16, a fourth-year pupll at the Jose D. Lt. Gen. Ridgeley Gaither and turn it back advertising in advance that we felt it would Moscote School. to the battle-bruised Canal Zone police, get out of hand. His disorderly acts were reportedly espe­ under Maj. B. A. Darden. "As long ago as last August I told my cially offensive. He is understood to have Panama is off limits to all servicemen and people in the United States that unless shoved and elbowed law-enforcement officers their dependents, and Potter has warned there was some positive action on the part and finally to have dragged a flag around a zone civilians from entering the Republic. of the Panama Government, I was appre­ Canal Zone policeman's neck and then For the first time in years, no US units hensive. yelled: "It's dirty now." marched today in Panama City's traditional "There have been many stories in Panama His actions are understood to have been Flag Day parade. papers, indicating there would be trouble. those which set off the first real disturbance Two of six young Panamanians arrested "When the trouble started yesterday, I at the border. during yesterday's ruckus are to face charges called a Presidencia official and asked him to Arrested during the same incident was an• in Balboa Magistrate's Court this afternoon. stop it now." other man of almost identical name, but no Rocks, tear gas, high-pressure firehose jets, (Yesterday, in a formal statement, the relation, Ezequiel Gonzalez Meneses, 23, un­ riot sticks, bayonets, curses, birdshot and Governor said that he felt that if National employed. Today he was out on a pass from some bullets flew along the frontier line for Guardsmen had taken steps earlier to break Gorgas Hospital. His head was bandaged and hours yesterday as Aquilino Boyd's "peaceful up the mobs forming along the border, the he wore a hospital pajama. It was arranged invasion" erupted into a demonstration incidents in the Canal Zone would never for him to sit during the hearing. which, momentarily at least, dragged US­ have occurred.) Luis Humberto Barletta Diaz, age 47, a Panama relations to the lowest point in "Several proininent Panamanians have garageman, who is a brother of Second Vice recent memory. visited Canal Zone officials in recent days to President Heraclio Barletta Bustamante; U.S. Ambassador Julian F. Harrington express hope that we would do everything Donald Horacia Brathwaite Pyle, 22, a laborer; delivered to Panama's foreign minister a possible to prevent trouble, and this we and Tomas Castillo Beitia, 41, a chauffeur. protest couched in "the strongest terms," think we did. Obviously we could not go were arrested later after another incident. declaring that the desecration of the into Panama to break up the mob." All pleaded not guilty. Brathwaite and Stars and Stripes which demonstrators The Governor went on to say that from Castillo chose to be tried today and their tore from the US Embassy mast and ripped what he had seen personally and the of­ cases were to be called at 1 :30 p.m. to shreds, put US-RP relations "in serious ficial reports reaching him, the rioters At the request of the two, Gonzalez and danger." seemed to be of the same type of groups Barletta, court recessed to give them op­ Panama has not yet replied to the protest, that normally compose local riots such as portunity to contact relatives and discuss nor has there been any official Panamanian those of May 1958. hiring lawyers. Gonzalez Nunez's parents Government statement .of yesterday's fron­ They seemed composed of some students, were in court. tier violence. some hoodlmns, chiefly young, with older Later the three asked for and received Participants in the flag incident claimed men among them obviously egging them on. continuations to 9 a.m., November 6. 1t was sparked by a Canal Zone policeman "Only as a last resort to prevent real civil Bail for each was set at $200 at the re­ trampling on a Panamanian flag during disorder and pillaging did I ask that troops quest of District Attorney Rowland K. Haz­ rough frontier scuffiing along Tivoli Avenue be brought into the picture," he said. ard who said that though the offenses were at Ancon Boulevard. Panamanian sources report nine of the 64 only misdemeanors, they occurred in "ag­ The demonstrators, Boyd and Ernesto persons treated in Panama City hospitals gravated circumstances" and "the govern­ Castillero among them, raised the Panama­ yesterday had bayonet wounds, and three ment wants to make sure they are tried in nian flag on the Embassy mast and then bullet wounds. open court." sang the Panamanian national anthem. The military authorities deny firing any Up to noon, only Barletta had posted bail. In a later statement, Boyd and Ernesto bullets. Only firearins activity was some Bootblack Fernando Bliss, 44, who was Castillero said they had been unable to pre­ birdshot. charged with simple intoxication, though he vent the flag incident at the Embassy. · Casualties among the Canal Zone police­ was arrested in the riot area, was fined $10. The cosponsors of the "peacefUl inva­ men and firemen totaled between 45 and 64 From every side on the Canal Zone, came sion" had the following to declare of the during the day's disturbances. reports that zone police were overly patient day's events at large: "We consider that the On the Pacific side, one fireman was ad­ during the rioting, putting up with consid­ objective we sought to achieve, the reitera­ mitted to Gorgas Hospital with a fractured erable indignity before asserting themselves. tion of our sovereign rights over the Canal knee. Ten other firemen were given first Considerable property damage was reported Zone this November 3, to have been amply aid treatment at the hospital and 8 other on the Pacific side. achieved. firemen and seven officers treated on the Demonstrators pushed five private auto­ "We believe that demonstrations of this .spot. mobiles into a fire which they had started kind are necessary and useful for the Pana­ Twenty-one police officers were treated at when a bus dispatcher's shack on Shaler m anian cause. We congratulate the people Gorgas Hospital for cuts and bruises from Road was overturned and set ablaze. of the capital city for their lofty and patri­ fiylng rocks, hunks of concrete, and other There was extensive damage to the ex­ otic conduct along this journey which has objects. terior of the Ancon Masonic Temple and to opened a new path by which justice may On the Atlantic side, three police officers the windows and grounds of the Catholic be accorded to our country." were struck by rocks and other objects. One Home of Maryknoll Sisters on Tivoli Avenue. 1566 CONGRESSIONAL RECORD - .HOUSE January ~8 The sisters were forced to ·ev:acuate the let ·him move to the monument, where he AU zone auth.orittes had pr.alse for the buildings. posed for ·photographers. manner 1n which the local ntte firemen Street lights along T1 volt and Fourth· of The early appearance attracted scant pub­ stayed on the job under the long bombard­ July Avenue were broken and three plate Uc attention, but Potter was looking narrow­ ment of rocks. glass windows smashed by rocks at the Fern ly upon the :scene from high up In his ad- Potter today _pmised the policemen. and Room of the Tivoli. :mtnlst:ratton building omce. - firemen for acting conservatively at all times Four Canal Zone police radio cars were For 2 months he had been reading bts reac­ and making every effort to avoid incidents. damaged; windshields and windows were tions to Boyd's announced invasion. . The men were ·told that the restra'int and broken and the bodies dented. Carefully observing Canal Zone trame laws, 'self-control ~·exerctsed in the -race of re·ckless, Windows were knocked out of the otHctaJ. Boyd drove off to repeat his O.ag waving dem­ unreasonable provoCations by large hoodlum sedan assigned to the chief Qf the Canal onstration on Wrafiores Bridge and at the elements of an uncontrolled crowd" un­ Zone fire division. west bank ferry ratnp. On none ,of these doubtedly served to avoid what could have The body of one firetruek was dent ed and occasions was there more than an ()Ceasional been tragic -consequences, :and that they had. sections of tire hose were slashed with knives. bystander, and there was no visible reaction. burn­ territory." day. ing it to the sills. At least three private au­ Then he led the 11-ear parade back over In the suburbs there was no indication. of tomobiles, some of which belonged to rail­ Mira:flOl'es Bridge and headed with his friends trouble, and tn the Panama Oathedrat Presi­ road personnel, were burned in the same fire. for the Atlantic side, where he repeated his dent Etnesto de la Guardia, Jr., olllcers of ·The baggage room at the Panama station performance. hls government, and members

. \ 1960 CONGRESSIONAL RECORD- HOUSE 1567 areas only a block or so behind the frontier, [From the Panama Star & Herald, Nov. 5, carrying extra-long stocks, forced the dem- it was clear that this was no improvised 1959] onstrators back to the Panama corner. action. REPUBLIC OF PANAMA BLAMES TROUBLE ON The flag-carrying group grew in size as it The troop commanders plalnly knew their ZONE SHOW OF FORCE--TROOPS GUARDING walked back and forth several times from task in advance and moved in with practiced BOTH SIDES OF BoUNDARY LINE the corner to the "J" Street intersection at smoothness to carry it out. With Panama and United states troops one time going as far as "H" Street oppo~ite As the demonstrators at the De Lesseps standing guard at intersections along the the Ancon Courthouse. The demonstrators Park wall grew increasingly excited at the Canal Zone boundary yesterday, this coun- were kept on the sidewalk by the Canal Zone spectacle of a platoon of troops with fixed try officially blamed American authorities- police detail, which stayed on the street. bayonets spanning Ancon Boulevard, Na­ at least partly-for the wave of anti-U.S. There was one young student in the group tional Guard Capt. Manuel Hurtado and demonstrations that plunged relations be- that kept stepping off the sidewalk onto the only four men did a fine, desperate job of tween the two countries to their worst crisis street. Every time he was forced back on trying to persuade them not to do anything yet. the sidewalk, he jostled the policeman. rash. · An · ofllcial Panama counterprotest to the Several times he brushed a policeman's bel­ It was a long time before Hurtado and his United States , said, in effect, that the dis- met with the flag and then wiped the banner patient, persuasive. quartet got any rein­ play of American force to repel demonstrators with his handkerchief, with a gesture in­ forcement in their task of trying to avert a at the boundary line Tuesday was unjusti- dictating that the emblem had been soiled. direct clash between the headstrong demon­ fled. The group was heading back to the Pan- strators and the implacable, heavily armed While officially deploring the desecration ama corner at the Ancon Boulevard inter­ troops. of the American flag, which was pulled down section when the student stepped off the Several observers give hustling Hurtado from the American Embassy flagpole and curb again. Suddenly, a zone policeman much credit for averting serious bloodshed. ripped, the Panamanian note pointed out grabbed him by the arm .and yanked him to Foiled in their efforts to get into the zone, that this action was "preceded by analogous the middle of the pavement. Another dam­ one of the larger bands of demonstrators acts performed with a Panamanian flag in onstrater who apparently sought to hold took off down to the Panama Railroa:d sta­ the Canal Zone." back the student also was pulled violently to tion-also Panama Canal property-where President Ernesto de la Guardia, Jr., told the street. before the arrival of a National Guard Panamanians in a nationwide broad.cast last This happened at 11:15 p. m. right in motorcycle squad they wreaked the blazing night that his government is not responsi- front of the empty lot formerly occupied by damage described earlier. ble for Tuesday's events. He added Panama the American Club. The building was de­ Platoons from the First Battle Group, 20th "condemns and reproves the events which molished not long ago. Infantry Regiment, were stationed across occurred at the Canal Zone boundary, be- Rocks and large pieces of concrete, picked Ancon ~oulevard, Gorgas Road, San Bias cause they are not called for on the part of up from the lot, rained on the zone police­ Place, and at the limits. authorities of a country which shares with men. A radio patrol car which stopped roo­ It was the most determined display of us a vital and joint inte.rest in the canal mentarily while the struggling demonstra­ armed might on the isthmus for many years, enterprise." tors were subdued-one of them with blows as the gasmasked troops stood in grim array, Anti-U.S. agitation continued yesterday in from a blackjack MM_:_had every window and their bayonets extended toward Panama and Panama City. The Fuerza y Luz co. build- the windshield smashed by rocks. the demonstrators catcalling on the sidewalk ing in downtown Central Avenue was stoned The battle was on. Policemen retaliated beyond. by demonstrators, who also set fire to two with tear-gas grenades and tear-gas sprayers. In most cases the line of troops was as parked company vehicles. A strong National Fire trucks arrived almost immediately and much as 50 yards back into the Canal Zone Guard mounted and motorized detachment half-a-dozen hoses were laid between the standing Impassive as demonstrators bor~ was dispatched to the scene and finally dis- Maryknoll convent and the Tivoli Hotel. The their flag up close to the bayonets, scurrying, persed the demonstrators and the large crowd streams of water were thrown almost con­ taunting, and singing popular songs. that had gathered. Some stones were thrown tinuously for the rest of the afternoon at the It was not until shortly before night fall against the guardsmen, but no further inci- demonstrators, who kept trying to carry the that Hurtado got reinforcements to help him dents developed. flag into the boulevard. Demonstrators empty out the frontier streets and areas from The widespread anti-U.S. feeling in the sometimes suceeded in picking up still smok­ which the demonstrators had been surging city prompted the u .s. Embassy to suggest ing t ear-gas grenades thrown by police and perilously forward toward the zone. As night fell the crashing of PAA and that all American cit izens in the Republic re- hurlin g them back on the Canal Zone side. Grace Line plate glass windows was heard in frain from visiting the downtown and con- Police also returned the rocks thrown by De Lesseps Park as anti-American demon­ gested areas of the capital for the time being, demonstrators. trators expressed their feelings against u.s.­ unless absolutely necessary. Already, all of Early in the clash, a lone Panama National owned firms. Panama was off limits to American residents Guard radio patrol car screeched to a stop of the Canal Zone, both civilian and mili- at the intersection. Its two occupants got The booming of normal independence day tary. out briefly and, as the demonstrators fell fireworks in faroff Panama surburbs agitated some zonians, but after the National Guard Troops of the 1st Battle Group, 20th In- back on De Lesseps Plaza, returned to the moved in to keep the peace on the Panama fantry, and t.he 53d and 549th military police patrol car and left. side of the embattled frontier, calm de­ companies took over the boundary line at It was not until almost 1 o'clock that Na- scended and remained through the night. 2 :30 p.m. Tuesday after Canal Zone police- tional Guardsmen were seen again at the In the course of deploring yesterday's vio­ men and firemen had fought rock-throwing intersection. But clearly they were not in lence, President Eisenhower said he favored demonstrators with tear gas and firehoses sufficient numbers to control the crowd building a second Panama Canal, but that for 4 hours. immediately. the project was so complicated and required The demonstrators responded to a call by The general estimate was that the demon- such study that it was not necessarily some­ nationalist leaders Aquilino Boyd and strators actually involved in the rock, tear thing h e would ever recommend. Ernesto Castillero Pimentel to show the gas, and water battle numbered about 200. The President said that he had felt for the Panamanian flag in the canal zone during There was a crowd of hundreds of spectators last 14 years that it would be a good idea to Panama's Independence Day, which was cele- gathered in De Lesseps Plaza, by the legis­ have another canal. brated Tuesday. lative palace, but there was no more to join He did not indicate, however, where he Boyd and Castillero theiDSelves had dis- the demonstrators. thought a second canal should be located if played the flag on the Pacific side of the The clash continued for 4 hours, with only a study showed it to be worth building. Canal Zone, and later on the Atlantic side, a few lulls when National Guard officers came He said he would not favor international­ during an early morning uneventful auto- to confer with Canal Zone police and later ization of the Panama Canal. He said the mobile ride, during which they posed, flag in with Army officers about a mob along the United States had a treaty with Panama cov­ hand, for photographers at various public border. Their disorder could not have been ering use of the canal and the United States places. permitted, because if it had been, it was ap- had lived up to terms of the treaty scru­ The trouble started building up at 10:15 parent that the rest of the mob would fol­ pulously. a.m., immediately after the conclusion of the low. The House Merchant Marine and Fisheries independence day school parade. A group Police Chief Darden and Civil Affairs Di­ Committee is now studying the question of of about 10 demonstrators; who identified rector Henry L. Donovan confirmed yester­ whether another canal is needed in the themselves as students, formed on the Pan- day the demonstrators were told that they Panama area. It is expected to report on am~ side of the boundary at the Ancon could come into the Canal Zone, with flags, th e mat t er at the next session of Congress. Boulevard-Tivoli Avenue intersection. They in small groups, provided they did so orderly, Eisenhower said the United States was crossed the street into the canal zone and and also that they could parade from L puzzled by anti-American outbursts in the were promptly stopped a few paces inside the Street to the limit along Fourth of July Caribbean. Ancon Boulevard sidewalk by Canal zone Avenue, but would not be permitted to enter He said the United States confidently policemen, headed by Chief B. ~. Darden. the side streets in the canal Zone. Darden hoped that not only Panama, but every other There was a briet exchange of words during and Donovan said the offer made no impres• civilized government would make certain which the demonstrators were told· they sion on the demonstrators. The parley was that law and order are preserved. could not go on and half a dozen policemen, conducted in Spanish. 1568 CONGRESSIONAL RECORD- HOUSE January 28 In this connection, Capt. Manuel J. Hur­ yesterday (Tuesday) , said headquarters of to a patch of bamboo trees near the Tivoli tado, .of the Panama National Guard, re­ the Caribbean Command, were riot guns Guest House. No damage occurred and no. ported as follows: loaded with birdshot." injuries were reported." "At around 12:30 p.m. on ordetrs from Chief Panama officials said the National Guard Governor Potter said yesterday the calling Vallarino, I went with two radio patrol cars had made no use o( firearms. of Army troops Tuesday as an .·"augmenta­ to the legislative palace, where according to While the boundary clash was in progress, tion of police power" that was part of the reports reaching headquarters a clash was other demonstrators stoned the U.S. Infor­ plan worked out by Canal Zone authorities in progress between a crowd of. Panamanians mation Service offices in Panama City where . in connection with the November 3 demon­ and civil police of the Canal Zone .. a Panama Independence Day exhibit was stration, which was first announced in July. "When I arrived, the crowd was throwing featured, and then went to the Embassy Panama officials said that no further pro­ stones, but without too much difficulty the Chancery, where the building was stoned test had been received .yesterday from the people agreed to halt this. Before my ap­ and the American flag pulled down and U.S. Embassy. On Tuesday, Balboa Heights pearance, a parley had been undertaken be­ ripped. Glass windows in both buildings said Potter had urged the American Am­ tween North American and Panamanian were smashed. bassador to protest the failure of the Pan­ spokesmen. Major Darden, of the Canal In connection with the Embassy incident, ama National Guard to appear promptly ~nd Zone police, had delivered tb a lady professor Boyd and Castillero Pimentel made the fol­ to act to prevent the clashes at. the .bound­ a flag which the Panamanians had previously lowing statement yesterday: ary. The Embassy said it WQJ'l consulting_ planted in the zone and he even agreed that "* * *We arrived at Fourth of July Avenue with Washington before acting on the Gov-. a group of demonstrators .parade past A zone while a virtual full-dress battle was in ernor's request. section; with out flags unfurled, exiting by progress between hundreds of Panamanian Six demonstrators were arrested in the National Avenue (automobile row). citizens and the Canal Zone police in the Canal Zone. One, Fernando .Bliss, 44-year~ • "I believe everything would have ended section across from the Legislative Palace. old shoeshiner, was c}larged with intoxica­ normally had not Major Darden received a "We placed ourselves at the head of the tion and fined $10 on his plea of guilty. .. counterorder, apparently from the Governor crowd and advanced along Fourth of July Five others were charged, with disturbing of the Canal Zone, General Potter, which he Avenue up to a spot where the zone police, the peace. They are: Ezequiel Gonzalez communicated to the demonstrators, whose with tear gas and water hoses, succeeded in Nunez, the 16-year-old student involved in reaction was to go through by all means. dispersing it (the crowd). the incident at the start of the boundary It could be perceived that Major Darden "The multitude, in reprisal for the tram­ clash; Ezequiel Gonzalez Meneses, 23, un­ lacked control over his men and this aggra­ pling of a Panamanian flag by Canal Zone employed (no relation to the student); Luis vated the situation. The National Guard policemen and indignant over the acts of H. Barletta Diaz, 47-year-old· garage owner; was do-ing as much as was possible to calm bloody violence carried out against peaceful Donald H. Brathwaite, 22, a laborer at the down tempers in that atmosphere of rocks . students and patriotic citizens, who had Panama Abattoir; and Tomas Castine, 41, a and tear gas. committed no reprehensible act, asked us to chauffeur. "At about 2:30 p.m. the crowd appeared go to the Embassy of the United States of Brathwaite and ,Castillo announced they ready to disperse, but then the (U.S.) Army America to carry out a protest. were ready for trial and their case was heard appeared and tempers flared up again. "At the head of that multitude, we pro­ in Balboa Magistrate's Court yesterday ~ter­ "The principal difficulty came from agi­ ceeded to the Embassy, where, without our noon. They entered pleas of not guilty, tators. When the National Guard thought being able to prevent it, the people pulled but were found guilty. Judge John E. Dem- it had convinced the crowd· to -clear the area; down the North American flag and destroyed .ing sentenced Brathwaite to pay a .fine of . the agitators egged· them on to ·continue the 1t.. Then the flag of Pan~ma was raised and $100 and to serve 30 days . in jail. Castillo struggle. I must acknowledge· that there those present sang the National ·Anthem. was. fined $25 and sep.tenced to 30 days in were university elements who behaved well." After these acts were carried out, the protest jail. , In com1ection with Hurtado'S report of a d~mopstration was terminated. . On the request of th.e defendants, the countetorder 'from · the Governor, a Baib'oa . "We feel that the objective of· conducting cases of the ·two Gonzalez and Barletta w~re Heights spokesman said Police Chief Darden a symbolic reassertion of our sovereign rights set for Friday at 9 .a .m. Bail was set at $200 had had his orders for a long time, and he in the Canal Zone on the 3d of November for each defendant. Barletta posted the knew what to do. · · was fully accomplished. We believe that bond. All -three defendants entered pleas of acts of this nature are necessary and con­ not guilty. At least twice during the afternoon, the venient for the cause of Panama." demonstrators actually succeeded in enter­ In connection with Tuesday's disorders; . By dawn yesterday, Army troops had the Panama Canal press office issued the fol­ ing the Canal Zone, carrying the Pana­ lowing statement yesterday: manian flag. On the first <>ccasion they thrown barbed wire barricades at intersec• entered by the Ancon Post Office intersec­ tions facing the limits, J Street and "Canal Zone policemen and firemen have the Legislative Palace, and along most of been highly commended by Gov. W. E. tion, marched down Frangipani Street to the Potter for their actions Tuesday in dealing corner of the Sacred Heart Chapel, and Fourth of July Avenue. The barricades were turned into Ancon Boulevard to emerge at manned by troops in field uniforms and at with agitators along the Canal Zone-Panama some spots light machineguns had been borders on both sides of the isthmus. De Lesseps Plaza. They were not inter­ emplaced. Cars including buses and pedes­ "The Governor praised the policemen .and fered with. The second time, they entered trains entering from Panama at the limits firemen for acting conservatively at all times again by the Ancon Post Office intersection and making every effort to avoid incidents. and came down by the Ancon Elementary and San Miguel crossing were stopped and School. This time, however, army troops al­ checked for destination and identification. The men were told that the restraint and ready had taken over and the demonstrators Along the Panama side of the boundary self-control exercised in the face of reckless, were driven out at bayonet point past the line, Panama National Guard detachments, unreasonable provocation by large hoodlum Masonic Temple. also in field uniforms, and armed with rifles, elements of an uncontrolled crowd un­ guarded the intersections to keep demonstra­ doubtedly served to avoid what could have The violence at the boundary line-most tors from approaching. Another march to­ been tragic consequences and that they had of which was centered at the Ancon Boule­ ward the Canal Zone actually was planned done an outstanding job for which they vard and J Street intersections-lasted could ever be proud. until 6 p.m. At that hour, the demonstra- after the Flag Day parade yesterday, by tors finally dispersed. · . : · · university students .but a spokesman said it "Casualties amo:Q.g the policEPUen and fire­ was called off when "strange elements" tried men totaled between 45 and 50 during the The toll of injured from Tuesday's dis­ to join it. A group which went to the Leg­ day's disturbances. On the Pacific side, one orders stood yesterday at 117. Sixty-two islative Palace was stopped by the National fireman was admitted to Gorgas Hospital persons were treated at Santo Tomas Hos­ Guard detachment there. It was on its re­ with a fractured knee. Ten other firemen pital dispensary in Panama, 17 of whom turn up Central Avenue that the Fuerza y were given first aid treatment at the hospital were hospitalized, 52 zone policemen and Luz Bu~lding was stoned. The power com­ and eight other firemen and seven officers firemen were bruised or cut, and three pany is a subsidiary of American Foreign treated on the spot. Twenty-one police offi­ soldiers were slightly injured. Three of the Power. cers were treated at Gorgas Hospital for cuts Panama injured were reported in serious Although tension remained high, there and bruises from flying rocks, hunks of con­ condition-a man with a bayonet wound in crete and other objects. the liver, an 8-year-old girl hit by a bullet were few incidents at the boundary during in the lower abdomen, and a man who was Tuesday night. A report from Caribbean "On the Atlantic side, three police officers struck by a Panama firetruck. Command headquarters said: were struck by rocks and other objects. One "During the night, Panamanian fiags were officer's helmet was smashed and his head In connection with reports of persons planted for 5- and one 15-minute period cut. They were sent to Coco Solo Hospital wounded by bullets, Caribbean Command near the U.S.-owned Tivoli Guest House at for first aid treatment . but were able to re­ headquarters made the following statement Ancon a short distance inside the zone turn to duty when needed. One firefighter yesterday: "U.S. military authorities in the boundary at Panama City. Another Pan­ on the Atlantic side was bruised by rocks Canal Zone today denied reports of Pana­ amanian :flag was planted yesterday (Tues­ but did not require hospital treertment. manian officials that American Army troops day) near ,the Caribbean Command Head­ "Governor Potter requested ~!stance had used ball ammunition in dispersal of quarters but outside the military reservation. from the military forces at 2:26 p.m. Tues­ rioting demonstrators observing the 56th Also during the night, demonstrators hurled day after Canal Zone policemen and firemen anniversary of the Republic of Panama. a gasoline bomb at an American elementary had faced demonstrators on the Pacific side The only weapons fired against the crowds school gymnasium and attempted to set fire for 4 hours and when ·a similar incident be-

' CONGRESSIONAL. ~CORD- HOUSE · 1569 gan on the Atlantic side. The Canal Zone control to the Canal Zone police. The same to the court how Gonzalez Nunez, bearer of Government since early morning had been handover took place. yesterday afternoon on a large Panama flag, had been one of a very perturbed at the failure of the Guardia Na­ the Pacific side. noisy group which became increasingly dis­ cional to appear in the area of the mob The troops which have been withdrawn orderly on Tivoli Avenue Tuesday morning, gatherings. At any time the disturbances at from the perimeter of the Canal Zone are pushing and shoving police and refusing to the border could have been stopped had any being held in reserve positions. Some of obey police instructions to stay on the Pan­ positive action been taken by Panama. them are back in their 'barracks, wl;lile others ama sidewalk after the disturbance had "Considerable property damage was re­ are being held close by the areas which were reJLched the point where they had been asked ported on the Pacific side. Tuesday's front lines. to do so. "Demonstrators pushed five private auto­ Panama remains off limits to U.S. service­ The location ef the Canal Zone boundary mobiles into. a fire which they had started men and their dependents, and according to at this point. was established, and Wall testi­ when a bus dispatcher's shack on Shaler Caribbean Command boss Lt. Gen. Ridgley fied tha.t the point where Gonzalez . Nunez Road was overturned and set ablaze; There Gaither will remain so "till the agitation was arrested was 5 or 10 feet inside the Canal was extensive damage to the exterior of the ceases and I feel it safe for my personnel to Zone border. Ancon Masonic Temple and to the windows enter the Republic." WIPED FLAGS and grounds of the Catholic Home of the It is understood Canal Zone Gov. William Several times Wall said, the crowd had Maryknoll Sisters on Tivoli Avenue. The E. Potter, who has advised civilian resiqents touched Canal Zone police with their flags Sisters were forced to evacuate the building. of the zone to keep out of the Republic, then wiped the flags with their handker­ Street lights along Tivoli and Fourth of July shares Gaither's views. chiefs to denote they were now dirty. Avenue were broken and three plate glass Four Panamanians arrested during Tues­ Finally Gonzalez Nunez draped his flag windows smashed by rocks at the Fern day's frontier fracas appeared in Balboa around the neck of Canal Zone Policeman Room of the Tivoli. Magistrate's Court today. John F. McDowell. "Four Canal Zone police radio cars were Meanwhile charges of reprisal rose in Pan­ Police Chief B. A. Darden, who witnessed damaged; windshields and windows were ama over Canal Zone cancellation of certain the incident, ordered the arrest. broken and the bodies dented. Windows supply purchasing in Panama till zone in­ At this point, Gonzalez Meneses detached were knocked out of the official sedan spectors can inspect the manufacturing himself from the hostile crowd and tried to assigned to the chief of the Canal Zone fire processes. take the student away from police. division. The body of one fire truck was It is believed that the inspectors will not In court this. morning to observe proceed­ dented and sections of fire hose were slashed return to the plants in Panama till the city ings was Panama's acting director of physical with knives. is again on limits and Potter cancels his education, Alfredo Minutto. "Some of the worst damage was at the aqvice to stay out of town. · Attorney Carlos Garay, of the Foreign Of­ Panama City ra.11road station where looting At the time the purchase restrictions went fice, was seated inside the court ra.il. was still going on Wednesday morning. into effect, Potter instructed zone health Earlier this morning a student committee Demonstrators set fire to a passenger coach and supply officials that inspections should had called on both the Education and For­ standing on the station track, burning it to be resumed as promptly as was practical. It eign Ministxles to ask that they interest the sills. At least three private automobiles, was emphasized today that the purchasing themselves in the young defendants' behalf. some of which belonged to railroad person­ restrictions were imposed jointly by the In court earlier, a disturbing-the-peace nel, were burned in the same fire. Pa1,1ama Canal and Caribbean Command. case against Cayo Julio Rodriguez, 18, Pana­ "The baggage room at the Panama station Work started today on tidying up the zone manian, was dismissed on the government's was looted and the small office enclosure in in the wake of the Independence Day affray. motion. He had been accused of making the baggage room burned. A large safe in Nothing was yet btling done about the looted obscene gestures toward police and troops the baggage room was stolen. One of the Panama City and Colon Railroad station. on Thatcher Highway on Wednesday. railroad's car inspectors was struck on the The extent of the damage tq these two build­ head by rocks. ings has not been assessed yet. TODAY'S INCIDENT "The Panama fre1ghthouse was open for There was a · slight flurry of frontier ac­ This morning's Shaler Road incident took business Wednesday morning with National tivity this morning and yesterday at Shaler place when canal employees began clearing Guardsmen on duty in the freight yards. Road, where three cars were burned Tuesday. burned automobiles and other rubbish from "Tuesday's disturbances caused little National Guard forces were swiftly on the the bus parking lot there--scene of much absenteeism in company-government offices scene, and nothing developed. of Tuesday's rioting. and units Wednesday although a number of The withdrawal of troops from the Canal In the process a small Panama flag was employees reported late. A few Panamanian Zone frontier on the Atlantic side followed found attached to part of a light pole. When employees had previously requested time off an uneventful Colon Day, when thousands it was being removed a group surged over for the national holidays and they had not of celebrators traveled over from Panama. from Panama, but the trouble was shortlived. been expected to report. One U.S. source today gave much credit Shortly after 3:30 p.m. yesterday a crowd ·"Buses were not running into the Canal for the Atlantic side tranquillity to Pana­ which had grown to approximately 300 peo­ Zone from Panama but bus service within ma's 1903 heroine Miss Aminta Melendez, ple gathered in Panama near the Legislative the Canal Zone was operating out of a who was flying the Panamanian flag at hal{ Palace just off Tivoli Avenue. temporary bus station near the Ancon staff on her home following Tuesday's Canal Members of the crowd planted a 3 by 5¥2 Laundry. Zone-Republic of Panama violence. Much foot Panamanian flag mounted on a mop "Crews from the community services divi­ respected in Colon, she called the U.S. Con­ handle as a mast in the Canal Zone about sion were out along the Pacific side border sulate there to express her regret at Tues­ 30 yards below the Tivoli guest house park­ streets Wednesday morning cleaning up qay's developments. ing area. the debris left from the disturbances Tues­ In Balboa Magistrate's Court today Eze­ Maj. ·B. A. Darden, chief of the Canal day. quiel Gonzalez Nunez, a 16-year-old Pana­ Zone police, who had been alerted to the "Classes were suspended Wednesday at the manian student, and a man of a similar situation, telephoned Lt. Col. Saturnino Ancon Elementary School where a gasoline name, Ezequiel Gonzalez Meneses, 23; un­ Flores at the Guardia Nacional Headquarters bomb was thrown at the school gymnasium employed, were called for trial jointly on in Panama. just off Fourth of July Avenue before sun­ charges of disturbing the peace, November 3. Darden requested the cooperation of the rise Wednesday morning. All other Canal The parents of Gonzalez Nunez were pres­ guards in restraining the crowd to avoid Zone schools are operating as usual as were ent. Though Gonzalez Meneses had been violence while the flag was removed from the traffic through the canal and company­ given opportunity to contact his family, he zone. government activities. told the court he had not reached them. Within minutes a detachment of National "Using a Balboa fire department pickup Both had been given continuance to see Guardsmen mounted on motorcycles and in truck as a base of operations, the supply counsel, but at first neither was represented patrol cars arrived at the scene near the by an attorney. Legislative Palace and restrained the crowd. and community service bureau handed out The flag was removed by a Canal Zone po­ 500 sandwiches and served 25 gallons of coffee After the taking of evidence started, Pana­ prepared by the zone policemen and firemen manian attorney Woodrow de Castro, who liceman without incident. Tuesday, from noon on, when it became was present to represent another defendant, Darden advised the National Guardsman in evident that they would be unable to go Luis Humberto Barletta, offered to represent charge of the detachment that the Guardia home for lunch. There also were 75 hot the two young :tnen free of charge and they Nacional could obtain the flag at any time meals served at the Balboa fire station to accepted. desired from the Balboa police station. the men·standing on the ready there." Barletta, 47, a garage man, 1s a half brother Following the incident Henry L. Donovan, of Panama's second vice president, Heraclio Director of the Canal Zone Government's [From the Panama American, Nov. 6, 1959) Barletta. civil affairs bureau, dispatched a letter to Flores, second in command of the National ALL TROOPS Now BACK FR·oM BORDER-RE­ The Gonzalez pair's case lasted all morning and was to be resumed this afternoon. Bar­ Guard stating: PUBLIC WILL REMAIN Ori LIMITs "TILL "Dear Comandante Flores: AGITATION CEASEs"--GAITHER letta, who 1s also charged with disturbing the peace, will be tried next. "I want to express sincere appreciation for :i'he Canal Zone:~public of Panama fron­ the immerliate response by. the Guardia Na­ tier on the Atlantic side was scheduied to NOISY GROUP cional this attern90n when Major Darden re~urn to normal at 8 p.m. today Wtt:ti the Testtinony by Capta.in Gaddis Wall, Dis­ telephoned you. to. request cooperation in­ Army handing back responsibil1ty for border trict Police Commander at Balboa, outlined restraining the crowd which had gathered 1570 CONGRESSIONAL ~~RECORD..::. HOUSE January, 28 and planted a Panamanian· flag in the Canal One Carlos Emilio Santanach, who has a Morgan Morales called' for "strict appli­ Zone. The immediate reaction ·on. this ooca- bullet wound in his left leg, said he was shot cation" of the treaties and perhaps some sibn served to avoid what might well have by an American soldier. changes. He also said it would be .'"a good resulted in further unfortunate incidents. However, Salvador Herrera, wlio was shot idea" if Panama received more revenue from "We both can take pride in this fine exam- in the right leg; Nicolas Perez Amores, also the canal. ple of what can be accomplished by the shot in the left leg, and oecmo Jimenez, who "Panama feels she doesn't have all the rapid cooperation of the Canal Zone police has a bullet encrusted in his lower jaw, all advantages she should have," he stated in a anli the Guardia Nacional in a tense situa- declare they were shot by Canal Zone police- recorded television interview. tion." men. couNTERMANDED? Another of the injured from ball ammunl- .In reference to Darden's denial yesterday tion is 12-year:-old Gloriela Moran, who has that he had been unable to control his men a serious bullet wound in the stomach ac­ BRASs TACKS OF THE ICC AD­ Tuesday and that one of his orders were cording to Santo Tomas Hospital charts. MINISTRATIVE PROBLEM countermanded by Pot1ier, Natio~al Guard Yesterday, both Canal Zone military au­ Mr. FASCELL. Mr. Speaker, I ask commander, Col. Bolivar . Valarino today · thorlties and Dil.rden said no ball ammuni­ unanimous consent to extend' my re­ backed up the report made by National ticin had been fired by soldiers of Canal Zone Guard Capt. Manuel J. Hurtado regarding policemen during the fracas. marks at this point in the RECORD and Darden. Military authorities admitted one of the include extraneous matter. Vallarino said Hurtado based his report demonstrators had been prodded with a The SPEAKER. Is there objection on statements made by Darden in the pres- bayonet. Santo Tomas Hospital reported to the request of the gentleman from. ence of several persons including newsmen. treating nine persons with bQ;yonet wounds. Florida? - Hurtado's report said Darden had agreed REPRISALS There was no objection. in his presence to allow small groups of stu- Editorially, El Dia rapped canal Zone Mr. FASCELL. Mr. Speaker, for many dents to enter the Canal Zone with . fiags authorities for taking economic reprisals· .years there. has been considerable dis­ but later welshed on the agreement when he against Panama by suspending purchases cussion of the independent agencies as was countermanded by some higher author- from local merchants. ·an· instrumentality of government. Ad­ lty, "probably GOvernor Potter." The editorial recalled the actions of the . Vallarino praised Hurtado as a levelhead- Red Army in Budapest and Warsaw and won­ ministrative Pl_".actice and prqcedure gen­ ed and conscientious officer who has. never dered whether "the United States intends to· erally bave· likewise , recently . re.ceived had. any reason "to resort to slanted inter- pretations." apply sanctions to Panamanians simply be- much·attention. , Meanwhile Canal zone community life cause they want to be free and to exercise Emphasis has been focused by there­ proceeded more or less normally, except for the sacred right of being free." ports of the Commission on, Organiza­ the Ancon elementary school which re- In one of two editorials, en.titled "The Big tion of the Executive Branch of the Gov­ Ifiained closed today. Stick," the noon tabloid La Hora also re- ernment, ''Legal Services· and Pro­ There are 393 pupils in the Ancon school, ferred today to the suspension of Panama cedures''-March 1955. Similarly, con­ most of them tuition stude'nts whose parents deliveries to the Canal Zone, calling it "eco­ gressional investigations have spotlight­ reside in the Republic of Panama. nomic aggression undoubtedly aimed at sub­ ed difficulties in the tremendous area of The Ancon School has been closed since mltting us to their exclusive willY Wedn~s.day. . . . . In the other editorial, La Hora called for agency operations and administrative The first street lights .to be repaired today the "removal of the Canal Company officials procedure. were three located :n,ear the Shaler Road bus responsible for the armed intervention of Many remedies are currently being dis .. terminal section. Before work could be American troops" in Tuesday's fracas, "as cussed. Included are reorganization, started a Panamanian flag was retnoved from . absolutely indispensible to opep.ing the way uniform rules, abolition, division of re- . · the top of· one pole· and· the remnants of for a .return to normalcy an~ peace." sponsibility; and other major reforms. . :fla;gs were r~moved from one other. , . ,. , Yesterday, an editorial in the government Anthony F. Arpaia, Commissioner and street ligh~s damaged. in t:tle Shaler Road ne'wspaper El Pais pleaded for unity and good area included six .light standards which had judgment on the part of· all Panamanians., former Chairman of the Interstate Com­ been torn down and three others with broken ' ·.That editorial, like others 'published yes­ ,merce Commission, .is a brilliant and ar­ light shades and bulbs. terday and totlay in some Panama City news- ticulate lawyer. He has an intimate and It was expected that street lighting in papers, (jeplored the desecration of the comprehensive knowledge of the opera­ the section of the city would be in full oper- American flag at the U.S. Embassy Tuesday, tion of our first independent agency, the ation by the end of next week. but insisted in the official government view ICC. that this incident was preceded by "th~ TELEVISION FILM LOST trampling and desecration" of the Pana- Recently, Commissioner Arpaia deliv­ Two weeks' worth of television .film was manian flag by a ca.nal Zone policeman ered an address at the New England destroyed by members of a mob when they during the height of Tuesday's clashes with Transportation Futurama, sponsored by looted the baggage room of the Panama rail- Panamanians attempting to ente·r the Canal the Transportation Association of Ameri­ way station in Panama City and burned a Zone carrying Panamanian fiags. ca and the New England Council. His railroad car T1,1esday, Caribbean Forces net- WASHINGTON speech makes a strong case against the work announced yesterday. As a result · it will be necessary for CFN Meanwhile stateside, in Washington, ·nr. blunderbuss approach to solving the Fed­ to telecast repeat programs from now Arturo Morgan Morales, charge d·'affairs of eral administrative problems. He speaks through November 29, until more film can be Panama, il;lsisted today that Canal Zone po­ clearly. and forcefully. In a straight­ obtained from Armed Forces Radio and Tele- lice had torn down a Panamanian flag, pro­ from-the-shoulder attitude, . he deline­ vision service in· Los Angeles: voking Panamanian demonstrators to attack ates the necessity of a selective approach the U.S. Embassy November 3. CANAL ZONE BLAMED The United States yesterday denied that -it using the ICC as an example. I · know· Panama City newspapers today continued was responsible for the rioting. State De­ my colleagues . will be · interested in· this to put the blaine for last· Tuesday's incidents partment spoke~mail Lincoln White said the timely speech, · appropriately entitled at the Canal Zone border on zone authori- United States had ctone nothing "to infiame ''The Bra~s Tacks of the ICC Adlnin­ ties in particular and u.s. officials in general. the situation.'' istr:;ttive Problem," ·which follows: The morning. tabloi.d Critica· editorially · But Morgan· Morales said that the Pana­ THE BRASS TACKS OF THE ICC ADl\UNISTRATIVE blamed Potter for the worsening of relations manian charges were supported by eyewit­ PROBLEM ' between Panama and the United States. ' ness accounts of U.S. newsmen to reports (Address by Anthony Arpaia) 'I ''Undoubtedly our problems with the that Canal Zone police "tore down" a Pana­ U:n,ited States have been becoming more manian flag tied to a lamp post by students By the very title of this conference­ aggravated by the noncompliance with treaty who had entered the Zone. "Transportation Fut}lrama"-it is clear that obligations. your concern is with the future of trans- "But • • • the deepening of the resent­ DIFFERENCES portation, not with its past. That future, ment and the crisis which has arisen within The Panamanian official said the demon- in large measure, will depend on the part the the last few dayS' in our relations with the strations also resulted from long-standing Government will · pl~y in its regulation. No United States, are also due • • • to the in­ differences between Panama and the United law is self-executing. Therefore, the means effi:ciency, lack of respect, abuse, and even States over the interpretation of the 1955 by which the Interstate Commerce Act is ignorance of an official like William Pot­ treaty. · administered will be an essential part of its ter • • •" the editorial siud. He said that the wage dispute was only · future. - one instance of "a series of misunderstand- · Transportation regulation is now, and will WOUNDED PICTURED ings." · · for some time be, generally accepted as a The other morning tabloid El Dia pub­ Morgan Morales' said. Panama also dis- necessary function of Government. Two .as:­ lished pictures· of those who received bullet agreed with the U.S. policy to purchase food- pects of it are presently under official inquiry wounds, in Tuesday's fracas· at the Panama- stuffs' for Ca.mil Zone forces· in ·areas outsi

the answers to two questions are . being its territorial authority could hardly be vi­ Without question, mat~ers which involve fiOUght: How much regulation do we need, olated-it ran on fixed tracks between fixed the determination of reasonable rates, public and how should it be administered? points. None of the complications arising convenience and necessity, unjust discrimi­ Perhaps the two topics cannot be com­ out of ambulatory operations of motor car­ nation, consistency with the public interest, pletely separated, but I shall confine my d~­ riers existed. These complications were reorganizations, the propriety of securities' cussion today to the subject of the Federal made worse by certificate restrictions of ter­ issues, and the many sections of the act regulatory machinery. As a preliminary ob':" ritory, routes, commodities, and servic~. which require the establishment and inter­ servation, I will say that the present total The tariff filings of railroads were few in pretation of statutory policy, are functions cost to the taxpayers for the regulation of number as . compared with those now filed which justify the judicial type of approach surface transportation is modest. Hence, for 18,000 or more motor carriers of various and composite judgment. assuming that Government control will con­ classifieatlons, water carriers, and freight To develop rules and regulations covering tinue, the real question is, How can we get forwarders. There were no insurance re­ uniform accounting, safety, filing of reports, the most and best results for that cost? quirements for railroads. Their equipment and related activitie~. however, requires in­ Experts in and out of Government have for was more standardized and there was more formation, education, consultation, and ne­ some time given this subject considerable at­ uniformity in safety appliances, equipment, gotiation in the first instance. It is only tention. In fact, in the last 30 years there and operations. after such methods fail to produce a rule or have been 22 official investigations dealing Railroads did not require extensive Com­ regulation which will serve public purposes primarily or exclusively with the organiza­ mission supervision over hours of service, that the true quasi legislative function comes tion of the Interstate Commerce Commis- keeping of logs, and minimum qualifications into play. It is then that a hearing or rep­ . sion. This number does not include those of hundreds of thousands of drivers. It was resentations by all sides is necessary. If a now under way. In addition, there have been not necessary to police passenger bus re­ new rule, or a change in a rule proposed by a many independent studies by outside. ex­ quirements, brokers' licenses, shippers' asso­ bureau, is not accepted, the Commission, in perts. From such sources have come numer­ ciations, and illegal public transportation. the capacity of an independent, impartial ous proposals for the reorganization of Fed­ To add further to this list of administrative agency resolves the problem. eral transportation functions. These pro­ burdens, the Commission became responsible Once the rules, regulations, or standards posals differ widely in extent and practi­ for the safety of operations of millions of have been set, however, the duty of admin­ cability. Some would go to extremes. To a trucks engaged in interstate· commerce, even istering inspection, supply of cars, compli­ few, the so-called independent agency, in though they are exempt from economic regu­ ance with insurance requirements, compli­ spite of what the courts have said, is extra­ lation, or are privately operated. ance with hours of, service, maintenance of constitutional. They ·would abolish it en­ As a matter of fact, as of now, of the 2,286 drivers' logs, inspection of safety appliances tirely. Others belong to the "standpat," people employed by the Commission, 1,429 and equipment, filing of reports, checking negative school-they resist any change. or 62.5 percent, most of them in the field, are chiefly engaged in purely administrative accounts, keeping of statistics, investigation These extremists live in the past in vary­ duties which have little or no relation to the of violations, and enforcement is a straight­ ing degrees. Those who consider the inde­ quasi-legislative and quasi-judicial functions line managerial and administrative job re­ pendent agency as a headless fourth branch which are, and. should be, the Commission's quiring clearcut action. For this job, one­ of the Government resort, in part, to-condi­ principal concern if the shipping public is man management would be more appropri­ tions prevailing during the reign of James to be protected and the national interest in ate and more effective. the First of England and the 18th century the economic soundness of public transporta­ The adjudicatory functions of the Com­ to support their thesis. ·on the other hand, tion is to be preserved. mission have become of such complexity and the "standpatters" give no weight to the Although the work of the Commission is magnitude that they allow little time for massive economic and technological changes split along functional lines by Bureaus, the other tasks. They were enormously in.:. which have revolutionized transportation in responsibility of the Commissioners at tP,e creased by legislation between 1935 and the last quarter century. top is not, and cannot under the present 1958. The Motor Carrier Act of 1935 imme­ I do not question the sincerity of any of system be so divided. Therefore, the under­ diately involved a flood of processing over them. But sincerity is not the issue. Sin­ lying issue in the investigations and studies 80,000 grandfather, certificates for operat­ cere men can ·be wrong, as history has re­ directed toward the improvement of efficiency ·ing authority, . plus the ever-continuing peatedly shown. Our concern is with reality, of the Commission, whether l'ecognized or stream of applications for new authority since not with theorems; with utility, not ab­ not, is: Is it practical and realistic for a that time. · stractions. What we need first are the body of 11 men to effectively manage such The transportation policy of 1940 changed facts-a particularized analysis of the pres­ extensive administrative tasks and, at tlle the entire theory of regulation. Until that ent operations. Then, and only then, can same time, properly perform their adjudica­ time the function of the ICC was mainly to we evaluate necessary changes. Now, what tory functions? protect the public against unreasonable or are the facts? In addition to the fact that some of these discriminatory rates. With the regulation Although the Interstate Commerce Act duties are somewhat incompatible, there is of competitive transportion services and the has seen major amendment from time to necessarily an inordinate drain on the time adoption of the policy, in addition to its time, the Commission's organizational st~c­ of the Commissioners and diversion of at­ original function, the Commission was re­ ture has remained essentially unchanged tention and energy from the functions for quired to maintain healthy competition be­ since its formation. True, in 1952 the Sen­ which a Commission-type organization is tween carriers of all kinds while preserving ate hired an outside group of management essentially adapted and needed. But of the inherent advantages of each. Because of experts who made some recommendations greater moment is the organizational mon­ intense competition, the volume and com­ in what was known as the Wolf Report. strosity presented when 11 Commissioners plexity of rate, operating rightS, control and This resulted in some functional realine­ must somehow find the time, in. between the merger, and other proceedings increased ment of Bureaus within the Agency and the heavy workload of deciding cases, to meet, enormously. creation of the Office of Managing Director, deliberate and agree to take action necessary A few statistics will illustrate the changes whose duties are principally of the house­ to give efficiency and direction to such com­ in the workload. To use only the most im­ keeping type, but the Commission still re­ pletely administrative operations as I have portant categories of matters involving mained the repository of an assortment of mentioned. · economic interests of the public and the duties and the horizontal layers of authority One might as well expect a quarterback in carriers as an illustration: In 1934, there remained undisturbed. the huddle to get a majority vote of the 11 were only 61 proceedings authorizing exten­ UntV. 1935, with slightly over 100 class I men on a foot~all team before putting the sion _of operating rights · of railroads. In railroads and several hundred short-line and ball into play. The Commissioners do the 1958, there were 3,895 proceedings for operat- switching railroads within its jurisdiction, best they can but the very cumbersomeness , ing rights of all kinds, not including 3,999 the combination of quasi-legislative, quasi­ of majority approval as applied to these applica:tions for temporary authority. In judicial, and administrative ·functions in one purely administrative matters makes it diffi­ 1934, there were 127 investigation and sus­ agency was m~nageable. At that time trans­ cult to get action at all, since everybody's pension rate cases; in 1958, there were 1,865 portation problems were homogeneous and business shortly becomes nobody's business, investigation and suspension proceedings limited. and nothing is so frustrating as the eternal In 1934, there were only 18 proceedings in­ Vast changes began .with the Motor Car­ hanging on of an incompleted task. volving the acquisition, consolidation, or rier Act of 1935. This and subsequent leg­ The public and the Congress properly ex­ control of carriers. In 1958, there were 1,425 islation not only added to the adjudicatory pect the Commissioners, not staff people, to matters of this type, burdens, but thrust an unprecedented vol­ account for every Commission action. The Recent legislation further increased the ume and variety of duties upon the Com­ amount of time they must spend in answer­ workload. The rollback of exempt com­ mission. ing mail, preparing regular and special re­ modities with grandfather rights, tlie redeft,­ Before motor carri~rs were regulated, the ports, giving formal testimony on matters administrative chores, for example, those re­ · such as inadequate supply of cars, accidents, nition of contract carriage, the jurisdiction lating to safety, locomotive inspection, serv­ violations, accounting rules, safety and ad­ over discontinuances ot passenger services, ice, compliance, accounts, annual reports, ministrative efficiency, et cetera, sometimes and the Government guarantee of private investigations, and statistics were incidental reaches extraordinary proportions. Com­ loans to railroads created another batch of and closely related. The policing job was missioners are held answerable too for the matters requiring-adjudic·ation. likewise limited-a railroad's operating rights action, or lack of action, of the statf wherever An example of the incompatibillty of the were not restricted as to commodities, and located or whatever their duties. position of the Commission arises out of its CONGRESSIONAL RECORD - ·HOUSE January 28 responsibility in connection with the Gov­ one thfng" which r do know is that In the busin ess, and improper decisions to prejuafce ·ernment. guarantee of loans. The Commis.­ light of substantial differences in the work­ the interests they represent. - - sion must, by law, determine whether an ap­ load, distz'-ibution of functions, and statutory The Interests of all these groups are in plicant railroad is eligible for· a Gove:mment obJectives, those who would apply a bludgeo:n shar-p conflict, in matters coming before .the guarantee of a loan from private sources. inst.ead of a scalpel to cure the unspecified Commfssio:n. - A decision, at times, can hurt Whether the applicant ts qualified by the His of all admintstntive agencies are as some of them to the tune of. millions of dol­ ·st andards set by Congress for such assist­ ·dangel!ous- as the curbstone doctor. They, in lars. Wo.uld such powerful associations,. in­ a.nce is a true quasi-Judicial determination. -effect, urge-conformity for conformity's sake. cluding labor, industry, shippers, farmers, However~ experience has shown that the Yet, the greatest inequality results in trying taxpayers. chambers of c.ommerce, public offi­ Commission also is placed in the position to equalize the unequal, and the graveyard cials, practitioners, and motor carrier law­ of being the contracting party for the Gov­ of progress is conformity. yers, long tolerate the. exercise of control over ernment. It must prepare, negotiate, and If what I propose for the ICC is not spec.. the affairs of their members by a bumbling, sign the guarante.e agreement, and supervise tacular, lt is because the defect itself is not inept, arbitrary, or illegal bureaucracy? Are the loan. It- administers the provisions of obscure or complicat.ed. rn my opinion, we those who are vitally affected clamoring for the loan and guarantee agreement, has the can preserve the broad, flexible advantages the abollt.ion of the Commission? There is power to alter and extend the loan terms, of the ICC as an independent agency by a no such evidence. declare a default-if necessary, accept the col­ simple excision. The Supreme Court of the Unit.ed States lateral and pass upon it when default occurs. Those duties which are essentially mana­ has upheld this delegation of power repeat­ Although the situation has not yet Misen, I gerial or administrative, so-called line func­ edly. Those who pratcice before the ICO are would assume that the lenders would expect tions, can best be performed by a single ad­ satisfied with the fairness of its procedures. the Commission to obtain the necessary ap­ ministrator. They require direct action and In fact, they themselves have helped to propriation from Congress in the event of a responsibility. Therefore, some means formulate them through the years. Although default. These are not adjudicatory tasks should be found to separate them from the the ICC disposed in 1958 of more cases on Is it appropriate that the Commission be Commission. This can be done by a ver­ -the merits than all the civil cases decided required to fill the role of an interested party, tical division of the Commission into two ·during the same period by all the Federal -when it must adjudicate matters which may separate bodies: one to take over the admin­ -courts of the Unit.ed States combined. out vitally a.1fect. the economic interests of a rail­ istrative job and the other to retain the of 44 cases appealed to the courts In the road loan applicant during the life of the quasi-judicial and quasi-legislative work. :fiscal year 1959, the Commission was reversed loan? Suppose, :rmther, the railroad should Such a plan would preserve the experience in only 16 percent. By comparison, Federal wind up in bankruptcy-the Commission and advantages of the present system wi-th­ district courts have been reversed in 28 would be required to pass on a plan of re­ out disruption and expense; It would require percent of the cases appealed to the circuit organization in which. it, as a party par­ minor adjustment and, even if it were im­ courts. perfect, could be tried without being irrev­ ticipant, was responsible for the creditor Until recently, all the attacks of those who status of the U.S. Government~ It is not ocable. As a transitory step-the admin­ istrative operations could be assigned ex­ would jettison the independent agencies only an inconsistent role but, frankly, down­ have been from people who had little con­ right uncomfortable. clusively to one of the Commissioners who could be freed of other duties. tact with them. On September 10, 1959, Now, what does all this mean? It means J. I may add that my suggestion is not new Louis Hector, who had a short experience simply that the heavy demands on the Com­ with the CAB, quit with a dramatic valedic­ mission's attention and time for purely ad­ or original. In fact, it was first made 30 years ago by a committee of the National tory which got considerable publicity. He ministrative duties not only serve to impede claims that the problems of the OAB are the efficient exercise of adjudicatory func­ Industrial Traffic League, an old established organization which represents all of the ship­ "born of the· very concept of the independent tions, but that failure to distinguish be­ administrative commission." I cannot agree tween the two has given some color to the pers of the Unft.ed States. The majority of the committee favored dividing the ICC into with him that the machinery regulating the insinuation of those who would scuttle economics of transportation should be up­ independent agencies that administrative two bodies; one for the control of rat.es, etc., and one for the control of facil1ties. If it rooted for- some untried substitut.e. You law has degenerated into administrative don't tear down a structure which is essen­ lawlessness. was a valid judgment under conditions pre­ vailing then, it should be more than valid tially sound. If there are defects, you re­ Confront.ed as we are with this situation­ now. pair; if there are Insects, you fumigate. what course of action should be taken? Those who would destroy admlnlstratlve I conceive it to be the duty of a public The answer, in my judgment, will not be agencies would have us believe that there officer to explain the strengths and weak­ found in the attitude of the apologists for is something fundamentally wrong in the nesses of our regulatory processes, not on the status quo nor of those critics who, delegation of quasi-legislative duties to such the basis of pique or personal philosophy thinking only in ternis of the strict con­ agencies. Now, I don't mean to imply that but on the basis of facts and logic so that cepts of the pure judicial process, would the agencies ·haven't made mistakes, that those who must be served can make a neces­ scrap the entire· system by dividing the their Judgment is_ infalllble, or that there sary evaluation. · In my experience of many functions of the Commission between sev­ Isn't room for improvement. So long as the years, as a transportation student. practi­ eral new agencies and courts. affairs of men are run by men and not tioner and member of the Commission, the The use of courts for the job of regulating machines, this is Inevitable. only substantial compla.int I have met i~ that transportation, in my judgment, is unwork­ Nevertheless, their criticism sounds petu­ of delay. able. Modern conditions require tools that lant~ carping, and artificial. I hate to say Delay is due to congestion; many courts are more flexible than detailed legislation en­ this but I'll tell you why I think so. Every also have delay. Delay cannot be cured by forced by forma'! judicial process. The Com­ decision of the Commission touches the further constipating the functions of Gov­ mission, as an independent agency perform­ pocketbook and the emotions of someone-­ ernment by added bureaucracy; or by sub­ ing a blend of quasi-judicial, quasi-legisla­ . not remotely, but directly. It may be a stituting cumbersome, impractical machin· tive functions, has become a necessary in­ carrier or a group of carriers, a shipper or ery- of three or four separate overlapping · strument of Government. As such, it is an entire industry, a form of transport or all agencies for the work now performed by the characterized by flexibility, relative in­ of the transportation industry. They could Commission. Businessmen are realists. formality and is inexpensive and simple in and do disagree, at times vigorously a.nd bit­ They want decisive and prompt action, since its application. However, to insure its work­ terly, with our declslons. While some want plans involving considerable investment ab111ty, this basic function should be freed more regulation and others less, none of often depend upon them. They don't want from the impediment of_ duties which have them, to my knowledge ~ want to change the more redtape, delay, and the opportunity for become incompatible with its primary job commission-type agency. Can it be that pettifogging. As a matter of fact, the com­ of prot.ecting users and preserving the eco­ they harbor such sentiment and are unable plicated setup proposed by some could drive nomic -values of transportation in the na­ or unwilling to give it expression2 It is a businessman to desperation. tional and public interest. hardly likely. I have tried to give only a general outline What then ls the alt.ernative? Stubborn Nowadays every conceivable activity in our of the appropriate separation of functions. uncritical acceptance of the present organi­ economy is highly organized. There is no It may be that, although annual and other zation solves nothing. Nor will its solution industry or trade that does not have a power­ reports o-r carriers, and the supervision of be advanced by sensational, generalized ful association to speak for it; scarcely any accounts, etc.,. are administrative, the eco­ headline-malting attacks on all independent part of our economic life is not represent.ed nomic experts and _the' cost-study experts agencies, on the erroneous assumption that in this fashion, from scrap iron dealers to now with such bureaus should remain with­ their functions, processes, and burdens are florists. The segments of the transporta­ in the Commission. It is quite possible. alike. tion industry are similarly organize({. These I am not, within the limits of this talk, try­ I am not intimately acquainted with the associations can speak for individuals and ing to delineate a detailed plan. specific problems of other administrative preserve the anonymity of their members. This proposal does not, of course, 1n any agencies and~ from- some of the comments They are informed, alert, capably staffed, and way preclude the improvement of procedures others have made about the ICC, it- is ob­ vocal. It is improbable that they would and processes of regulation which the Com­ vious that those who speak conc~rning us permit coercive tactics, o~cial abuse of mission is actively and energetically pur­ have only superficial knowledge of ours. The power, arbitrary intervention into privat.e suing. On the contrary, it would encourag-e 1960 CONGRESSIONAL RECORD- HOUSE 1573 and promote such improvement by affording is? How can we relate our planning, our United Nations if the goal which the the Commissioners the time necessary to de­ proposals, and our policy in a purpose­ vote to such ends without the diversions anc1 members of the U.N. had unanimously distractions they now face. ful way to our objective as a Nation adopted, namely, "general and complete New demands on transportation arise con­ until we know just what our objective disarmament under effective interna­ stantly in a. dynamic economy. No one can is? tional control," were to be made a tary requirements make its public trans• I submit that there are several oft­ reality. dzny that the Nation's economic and mili­ stated fundamental propositions on Our own Ambassador raised three fun­ portation more and more indispensable. To which there is wide agreement: damental questions to which he said the the extent that the ICC can contribute to giving vigor and dynamism to our transpor­ First. We do not want war. United States seeks answers: tation system, this is a full-time job. In the Second. Nuclear war would be a ter­ First. What type of international po­ face of indicia that our present transporta­ rible disaster. lice force should be established to pre­ tion media must move fast to match the Third. We would prefer not to have to serve international peace and security? expanding needs of this Nation, I wonder if spend $41 billion--or more-on arma­ Second. What principles of interna­ we have any choice in the matter of tuning tional law should govern the use of such up its regulatory machinery. ments each year. Fourth. We feel we must in order to a force? deter aggression by the Communists. Third. What internal security forces, Fifth. We would like to disarm, but in precise terms, would be required by UNITED NATIONS CHARTER _RE­ nations of the world if existing arma­ VISION we cannot trust the Communists. Sixth. We, therefore, quite rightly in­ ments are abolished? Mr. ALBERT. Mr. Speaker, I ask sist on adequate inspection and control This debate clearly indicated that we unanimous consent that the gentleman measures before we will disarm. and many other member nations feel from Oregon [Mr. PoRTER] may extend If, as I believe, there is broad agree­ that study is needed to determine what his remarks at this point in the RECORD ment on these points, then I submit that changes might be made in the United and to include a resolution. this is. where we should start our think­ Nations structure before we would feel The SPEAKER. Is there objection ing and not continue to belabor these we could reasonably rely on this organ­ to the request of the gentleman from points over and over and over again. izat:on and disarm in safety. Oklahoma? Since we do not have reason to trust Mr. Speaker, the concurrent resolution There was no objection. the Communists, what inspection, con­ which I am introducing and which many Mr. PORTER. Mr. Speaker, on Mon­ trol, and enforcement machinery are we of my colleagues are also introducing day I will introduce in the House a con­ deals with these very matters. It asks prepared to propose and accept which for high-level studies to determine what current resolution on behalf of myself would eliminate to the maximum extent and Mr. ADDONIZIO, Mr. ASHLEY, Mr. changes should be made in the Charter BLATNIK, Mr. CLARK, Mr. FOLEY, Mr. possible reliance on trust alone by either of the United Nations to promote a just party? Until we have determined, with and lasting peace through the develop­ JOHNS()N of Colorado, Mr. KASTENMEIER, great care, the answer to this question, Mr. LANE, Mr. McDOWELL, Mr. MEYER, how can we say that we are prepared, ment of the rule of law in the limited Mr. MONTOYA, Mr. MOORHEAD, Mr. Pow­ field of war prevention. It urges that ELL, Mr. QUIGLEY, Mr. RHODES Of Penn­ under such and such conditions, to join this country make specific proposals to sylvania, Mr. RIVERS of Alaska, Mr. Ro­ other countries in disarming? strengthen the authority of the United DINO, Mr. ROOSEVELT, and Mr. WOLF. Until we have determined the condi­ Nations to prevent war when we meet The group of resolutions will be dropped tions which we would accept and have with other nations in coming disarma­ in the hopper en bloc at noon on Mon­ set them forth to the world, how can ment conferences. It urges that we day. If . any other Member, on either we know that any given nation will not · seize the initiative that we began in side of the aisle, would like to join with accept them? Even more important, 1955 at the lOth U.N. General Assembly _us in this, I ask that he please let my how can we hope to gain the support of to press for a U.N. Charter Review Con­ ()-mce know as soon as possible and no other nations for our proposals and that ference and that we urge other govern­ later than 10 a.m. on Monday. Of essential understanding of their reason­ ments to exchange views in preparation ·course, any Member may introduce a ableness and fairness which would build for this conference. similar resolution at any time subse­ up a strong world opinion in favor of dis­ Now certainly is the appropriate time quently during the current Congress and arming under conditions which the for us to capitalize on present auspicious I hope that many will do so. United States feels will be safe for all? international circumstances by pressing, This resolution deals with a matter of This determination on our part is firmly and sensibly, toward peace under the utmost importance to our country­ essential for progress which will be ac­ a rule of law. At this point I include the peace of the world. It calls for top ceptable to us and which will gain us, the text of the resolution: for a change, the initiative in disarma­ level study and for further initiative by HOUSE CONCURRENT RESOLUTION -- our country aimed at strengthening the ment matters. The rest of the world is . waiting for us to speak. Concurrent resolution expressing the sense United Nations. A companion resolu­ of Congress in regard to United Nations tion is today being introduced by Sen­ Any consideration of disarmament, Charter revision, and for other purposes ator JosEPH S. CLARK and a number of Mr. Speaker, leads to consideration of Whereas the basic purpose of the foreign his colleagues in the other body. national security. This in turn leads to policy of the United States is to achieve a No issue, Mr. Speaker, which now con­ consideration of those institutions which just and lasting peace; and fronts mankind ranks in importance will be required to guarantee national Whereas there can be no such peace with­ with the issue of whether we will have security in a disarmed world. Since the out the development of the rule of law in war or peace. Regardless of precisely United Nations is the major interna­ the limited field of war prevention; and how disastrous one believes a modern tional organization charged with keep­ Whereas peace does not rest on law today nuclear war would be,. there is no ques­ ing the peace, it is natural to consider but on the delicate balance of terror of tion or doubt on the part of anyone but whether the United Nations is able to armed force; and · provide this security or whether it will Whereas the United Nations General As­ that millions would be killed, millions sembly at its fourteenth session unani­ maimed, and the heritage of centuries need to be made stronger to fulfill this mously adopted "the goal of general and destroyed beyond repair. essential task. If it needs to be made complete disarmament under effective inter­ Faced with the magnitude of the stronger, as I believe, then specific meas­ national control" and called upon govern­ threat and conditioned by our inherited ures for strengthening the United Na­ ments "to make every effort to achieve a attitudes toward the problem of war, I tions or for creating some appropriate constructive solution of this problem"; and realize tha~ many of us find it difficult international machinery must be an Whereas a just and lasting peace would begin, firm· integral part of our consideration of not be assured even if nations lay down to know where we can with their arms unless international institutions ness and sense, to work toward a saner disarmament. for preventing war were strengthened; and solution. During the disannament debate at Whereas the United Nations constitutes Yet how can we seriously hope to find the 14th U.N. General Assembly last an important infiuence for peace but needs solutions to any problem until we de­ fall, many nations pointed out the fact to be strengthened to achieve the rule of termine what our long-range objective that changes would be needed in the law in the world community; and 1574 CONGRESSIONAL RECORD- HOUSE January 28 Whereas the United Nations General As­ ADJOURNMENT certain mining claims In California; without sembly at its tenth session resolved that "a amendment (Rept. No. 1230). Referred to general conference to review the charter Mr. ALBERT. Mr. Speaker, I move the Committee of the Whole House. shall be held at an appropriate time"; and that the House do now adjourn. appointed a. "Committee consisting of all The motion was agreed to; accord­ the members of the United Nations to con­ PUBLIC BILLS AND RESOLUTIONS sider, in consultation with the Secretary­ ingly

EXTENSIONS. OF REMARKS ne- "Featherbedded 11 Farm Program screen to hide the real beneficiaries of Ike at Chicago, Til. It iS: a remarkable this subsidy program-the gigantic agri­ speech in many ways. I - quote merely EXTENSION OF REMARKS, cultural corporations which are. the real one paragraph: OF culprits draining the b:illionso of dollars As far as I am concerned I don't think from the Public Treasury~ we need to be too worried about theft com_­ RON~ THADDEUS J. DULSKI The small marginal farmer is. being ments, because 1! you think what they said OJ' NEW YORK' used and referred to as a man of the publicly about me was bad you OUght to hear wnat· they're saying privately about IN THE. HOUSE OF REPRESENTATIVES soil~ and must be preserved at any cost. . To put the corporation: farmers on an each otner. · 1 Th:u:rsdau~ Jan1UJry28,1960 equal status with the rest of the seg­ The Viee President referred to com­ Mr. DULSKia Mr. Speaker" the die-. ments of our society, we should throw me-nts made- previously about hfin. tionary definition of "feather.bedding'' is them off the overburdened backs of the In this speech the Vice President has npay for unnecessary or duplicating jobs, American taxpayers who have carried demonstrated the judgment he has or limiting the amount of work to be them long enough on the :flimsy argu­ shown through his: years in the Vice done in a day as a means of stretching ments to justify the current feather­ PFesidency. His Office has certainly work'}• bedding, and provide them only with dis.­ qualified him to step up higher. and re­ The American people, from one end of aste:r protection such as given the work­ cent polls indicate that is. just what the our land to another. have been treated ers in industry-unemployment insurance people think~ to the spectacle of gigantic advertising or welfareL It, is just as. mooh. a disaster Mr. President-. his salutation .of the campaigns by industry. leveling this for a worker to lose his job a& it is for a President was superb. charge. against the workers in major seg­ corporation fanner to fail to sell his crop I ask unanimous consent that the ad­ ments of our industrial machinery. As, at an adequate price~ dress may be printed in the REcoRD. a result of this campaign, featherbedding There is a growing revolt among the There being no objection, the address is considered to be unethical, immoral, average taxpayers who are treated to the . was ordered to be pnnted in the REcoRD, and indefensible. spectacle of an example of one fanner as follows~ A careful review of :Federal legislation receiving $40,QOO of hard-earned tax dol­ TExT OF ADDRESS OJ" THE ViCE PRESIDENT OJ' relating to agriculture leads one to the lars in one year for keeping la:nd out THE 'UNITED- STATES AT THE' C'HrCAGO '«J>>NNI:Jt inevitable conclusion that the greatest of production to pay for work not per­ 'WITH IKE,"' .AMPHITHEATER, CHICAGo. Ii.L.• area of featherbedding in our country formed-the definition of featherbed­ JANUARY 27, 1960 today is concealed in our farm. subsidy: ding ac.cepted by all. This is a proud. day in the life of. this eity.. program, wherein.farmers are being paid The American people are being taken our paTty and our Nation. seven and one­ half yeam ago a great. crusade was launched for work not. performed.. Agriculture is the program~ by farm from this 'Very hal'l to drive, f:rom our Nation'a one business in America where idleness Capital a discredi'ted adminis.t.mtion arid to is not only encouraged but is made prof­ elect, as America's Mth President, one of_the ita.ble through taxpayer-supported farm truly great, men of' Wa c.eat.ury., Dwight: D~ subsidy programs. Address of Vice President of the: United. Eisenhower. The present featherbedded farm pro­ Statu at Chicago Dinner Willi Ike. Never in. the. histo:cy of this Nation. haa an gram is a. sick program because it. tam­ administr.a.tion, mo:r& magnillcenfJy :r.ealized pers ·with economic laws 'UDder. various the dl:eams and obJec.tives of those who. EXTENSION OF' REMARKS woxked and, voted f'or its elecUon. ~ the guises which cannot. be amended~ and OY acbievements. or those years, the American. has failed miserab~ to acoomplish its: people will be etsna.ny gr.a te(ul-the. ending announced objective of a high per HON. ALEXANDER WILEY of one war.. avoiding others. and maintaining fannly real income for the 1armer; Oi.' WISCONSIN peace without. mn:ende:r. oi principle or ter­ I agree thai' fanning must be encour­ lti:to:ry~ unleashing our econom.J from. IU'bi· aged, but not in this giveaway manner. IN THE SENATE. OP '1"llE llNIDID S'l"A"''ES truy controlB and, encoW'aging and stun­ Farming, as. defined by the t;ypical pas­ T1iursaa1f, .1anttarv28'. 1.96a uiating the m:eatlve enterprise oi. our people toral scene of a ruggedly individualistie With the restii!t that. om:. Na.tlon's pr~it:r ·!a WILEY E Mr. President" last night has. reached an all!" time high~ and above au individual and his family tilliDg the soil the Vice President of tlle United States: the restoration of the lifghest standard& of. on a small fann,. is &misnomer or smoke- delivered an ad'd:ress at the dimlez with han.es.ty .. dignity. and. in.tegrl.ty in the conduct OVL--IOO