house-of representatives - gpo.gov€¦ · incident because of my interest over the ... thurmond l...

21
1962 CONGRESSIONAL - RECORD- HOUSE 17325 conduct. But can the Senator furnish any reason why the chairman of the sub:. committee did .- not permit the questjon of adjourning the . hearing to come to a vote? Mr. BUSH. Madam President, I thank the Senator from New York for bringing out that point. Privately with him and other Senators I expressed sev- eral days ago a reluctance to discuss the matter on the Senate :floor because of the necessary absence of the chair- man. But so long as it has been brought up, against my wishes, and without any committee action-but I presume the Senator from California was within his rights as a Senator to do so- Mr. KEATING. There is no question about it. Mr. BUSH. So long as it has been done, very much against my better judg- ment, I do not wish to try to explain why the distinguished Senator from Missouri adjourned the hearing in spite of my protest and in spite of my request for a vote. I think any explanation will have to come from him at some more appro- priate time. Mr. KEATING. I understand the position of the Senator. My inquiry is whether he stated at the time any reason for his action. Apparently he did not. Mr. BUSH. No. I do not recall that there is anything in the record in the way of a reason why the meeting was so abruptly terminated. . Mr. KEATING. That is what disturbs me. I know nothing :firsthand about the proceedings in that committee. But I was particularly concerned about this incident because of my interest over the years in maintaining the integrity of the investigative processes. It appeared to me that this was another unfortunate example of the kind of procedure with which the Senate in the past has had deep· concern. Mr. BUSH. I think tne Senator is correct. I regret to say that I .consider it-I have so stated-an abbreviation of the rights of other Senators. It was a denial of our rights under the rules of the Senate itself. Madam President, I yield the :floor. Mr. ENGLE. Madam President, while we are dealing with editorials, on the same subject I should like to read in the RECORD an editorial appearing in the New York Post of Sunday, August 19, 1962, entitled ''Tycoonsmanship." The editorial states: · TYCOONSMANSHIP George Humphrey has been giving a Sen- ate committee a lesson in the of tycoons- manship. indifferent to serious questions of profiteering, General Eisenhower's Sec- HOUSE- OF REPRESENTATIVES THURSDAY, AuGusT 23, 1962 The House met at 12 o'clock noon. The Chaplain, Rev. Bernard Braskamp, D.D., offered the following prayer: Psalm 8: 4 :· What is man, that Thctu art mindful of him? · and the son of man that Thou visitest him? retary of the Tr.easury has been haughty in his contempt for Senators who want to know the details- of an apparent $34 million gain during the Korean war. He has, in fact, been acting like an irritated aristocrat in the presence of his inferiors. I interpolate to say that Mr. Hum- phrey referred to some of us, including - the Senator from South Carolina [Mr. THURMOND l and myself in particular, as mixed up and confused, which I did not regard as particularly complimen- tary. In addition, he referred to committee members as "you boys," and otherwise treated us as though we were law clerks who did not quite know what we were talking about. The editorial continues: The charges leveled at Humphrey are neither insignificant nor amusing. His company is alleged to have destroyed per- tinent records in order to circumvent in- vestigation. Humphrey himself was party to a no-risk contract which extracted a hand- some profit from this Government at a time when it was involved in a shooting war. During the now-adjourned hearing, the former Treasury Secretary scolded Senator SYMINGTON, calmly told Senator ENGLE that he was "mixed up,'' and dismissed the alle- gations against his company as "just bunk." Yet, by Humphrey's own admission (and he tends to paint a rosier picture than the Government accountants), his corporation profited at a rate of 25 percent from the necessities of war. That is something more than "bunk." In the past, we have been critical of the "clubbiness" of . the Senate. But in this case we are glad that Senator SYMINGTON asserted the dignity the upper Chamber and let Mr. Humphrey know that his casual arrogance will not be tolerated. Unless the Senator from Connecticut wishes me to yield, I will suggest the absence of a quorum. Mr. BUSH. Madam President, will the Senator yield? Mr. ENGLE. I am glad to yield. Mr. BUSH. Madam President, I thank the Senator for yielding. I have been handed a clipping from the UPI ticker. It has a bearing on the very strong sus- picion I have uttered for some time that what has been going on is really a polit- ical exercise in connection with the stockpile investigation. I read ·from the UPI clipping as follows: Kennedy recommended that everyone should read Senator ENGLE's speech today on the progress of the investigation into Federal stockpile by Humphrey's A. Hanna Mining Co. The President was asked if he considered the profits of the Hanna Co. brought out in the Senate investigation to be unconscion- able. They were extremely large profits with very little risk to the company, the President said. Eternal God, all-loving and all-power- ful, help us to believe it is enough for us to know that Thy grace, which hath hitherto cared for and blessed us, will continue to provide wherever Thou dost guide jn days to cozne. . , We need not fear to commend and commit ourselves and one another to Thy father-hands which have formed our very beihg and created the heavens and He said he could understand the desire of some witnesses to want to Identify them- selves with former President Eisenhower and charge ' that the investigation was a slap at the last administration. But it was the Hanna Co. and not former Treasury Secretary Humphrey that was the obj.ect of the Senate committee's inquiry, he said. Kennedy said the committee probably would go into operations of other firms as well as of the Hanna CO. · That is very interesting, Madam President, and it shows that the Presi• dent of the United States seems to be well informed as to what is going on in connection with the stockpile investiga- tion. I believe it confirms my strong suspicion that there is too much politics connected with this subject. Mr. ENGLE. Madam President, I have been in public life since 1934, and this is the :first time that a President of the United States has publicly recom- mended that my speech be read. I want it to be recorded as one of the greatest compliments I have ever had paid to me in my public service. I am delighted that my friena from Connecticut took occasion to call attention to it in the CONGRESSIONAL RECORD. Mr. BUSH. I congratulate the Sena- tor from California. Mr. ENGLE. Madam President, I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The Chief Clerk proceeded to call the roll. Mr. ENGLE. Madam President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. ADJOURNMENT UNTIL 10 O'CLOCK A.M. TOMORROW Mr. ENGLE. Madam President, I move that the Senate adjourn, in ac- cordance with the previous order, until 10 o'clock tomorrow morning. The motion was agreed to; and (at 5 o'clock and 44 minutes p.m.), the Sen- ate adjourned, under the previous order, until tomorrow, Thursday, August 23, 1962, at 10 o'clock a.m. NOMINATION Executive nomination received by the Senate August 22, 1962: INTER-AMERICAN DEVELOPMENT BANK Tom Killefer, of Virginia, to be Executive Director of the Inter-American Development Bank for a term of years and untll his suc- cessor has been appointed. :ordained the sun and the moon and the stars .and set them in their orbits. Grant that our beloved colleagues and comrades who are absent from us by reason of illness in homes and hospitals, m,ay be blessed with Thy mini' stry of di- vine healing for the great. Physician, who be.came our Saviour by His suffering and sacrifice, can do · for them more th.ari we can ask or

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Page 1: HOUSE-OF REPRESENTATIVES - gpo.gov€¦ · incident because of my interest over the ... THURMOND l and myself in particular, as ... That is very interesting, Madam

1962 CONGRESSIONAL -RECORD- HOUSE 17325 conduct. But can the Senator furnish any reason why the chairman of the sub:. committee did .-not permit the questjon of adjourning the .hearing to come to a vote?

Mr. BUSH. Madam President, I thank the Senator from New York for bringing out that point. Privately with him and other Senators I expressed sev­eral days ago a reluctance to discuss the matter on the Senate :floor because of the necessary absence of the chair­man. But so long as it has been brought up, against my wishes, and without any committee action-but I presume the Senator from California was within his rights as a Senator to do so-

Mr. KEATING. There is no question about it.

Mr. BUSH. So long as it has been done, very much against my better judg­ment, I do not wish to try to explain why the distinguished Senator from Missouri adjourned the hearing in spite of my protest and in spite of my request for a vote. I think any explanation will have to come from him at some more appro­priate time.

Mr. KEATING. I understand the position of the Senator. My inquiry is whether he stated at the time any reason for his action. Apparently he did not.

Mr. BUSH. No. I do not recall that there is anything in the record in the way of a reason why the meeting was so abruptly terminated. .

Mr. KEATING. That is what disturbs me. I know nothing :firsthand about the proceedings in that committee. But I was particularly concerned about this incident because of my interest over the years in maintaining the integrity of the investigative processes. It appeared to me that this was another unfortunate example of the kind of procedure with which the Senate in the past has had deep· concern.

Mr. BUSH. I think tne Senator is correct. I regret to say that I .consider it-I have so stated-an abbreviation of the rights of other Senators. It was a denial of our rights under the rules of the Senate itself.

Madam President, I yield the :floor. Mr. ENGLE. Madam President, while

we are dealing with editorials, on the same subject I should like to read in the RECORD an editorial appearing in the New York Post of Sunday, August 19, 1962, entitled ''Tycoonsmanship." The editorial states: ·

TYCOONSMANSHIP George Humphrey has been giving a Sen­

ate committee a lesson in the a.r~ of tycoons­manship. studio~ly indifferent to serious questions

of profiteering, General Eisenhower's Sec-

HOUSE-OF REPRESENTATIVES THURSDAY, AuGusT 23, 1962

The House met at 12 o'clock noon. The Chaplain, Rev. Bernard Braskamp,

D.D., offered the following prayer: Psalm 8: 4 :· What is man, that Thctu

art mindful of him? · and the son of man that Thou visitest him?

retary of the Tr.easury has been haughty in his contempt for Senators who want to know the details- of an apparent $34 million gain during the Korean war. He has, in fact, been acting like an irritated aristocrat in the presence of his inferiors.

I interpolate to say that Mr. Hum­phrey referred to some of us, including -the Senator from South Carolina [Mr. THURMOND l and myself in particular, as mixed up and confused, which I did not regard as particularly complimen­tary.

In addition, he referred to committee members as "you boys," and otherwise treated us as though we were law clerks who did not quite know what we were talking about.

The editorial continues: The charges leveled at Humphrey are

neither insignificant nor amusing. His company is alleged to have destroyed per­tinent records in order to circumvent in­vestigation. Humphrey himself was party to a no-risk contract which extracted a hand­some profit from this Government at a time when it was involved in a shooting war.

During the now-adjourned hearing, the former Treasury Secretary scolded Senator SYMINGTON, calmly told Senator ENGLE that he was "mixed up,'' and dismissed the alle­gations against his company as "just bunk." Yet, by Humphrey's own admission (and he tends to paint a rosier picture than the Government accountants), his corporation profited at a rate of 25 percent from the necessities of war. That is something more than "bunk."

In the past, we have been critical of the "clubbiness" of .the Senate. But in this case we are glad that Senator SYMINGTON asserted the dignity o~ the upper Chamber and let Mr. Humphrey know that his casual arrogance will not be tolerated.

Unless the Senator from Connecticut wishes me to yield, I will suggest the absence of a quorum.

Mr. BUSH. Madam President, will the Senator yield?

Mr. ENGLE. I am glad to yield. Mr. BUSH. Madam President, I thank

the Senator for yielding. I have been handed a clipping from the UPI ticker. It has a bearing on the very strong sus­picion I have uttered for some time that what has been going on is really a polit­ical exercise in connection with the stockpile investigation. I read· from the UPI clipping as follows:

Kennedy recommended that everyone should read Senator ENGLE's speech today on the progress of the investigation into t~e Federal stockpile by Humphrey's A. Hanna Mining Co.

The President was asked if he considered the profits of the Hanna Co. brought out in the Senate investigation to be unconscion­able.

They were extremely large profits with very little risk to the company, the President said.

Eternal God, all-loving and all-power­ful, help us to believe it is enough for us to know that Thy grace, which hath hitherto cared for and blessed us, will continue to provide wherever Thou dost guide jn days to cozne. . ,

We need not fear to commend and commit ourselves and one another to Thy father-hands which have formed our very beihg and created the heavens and

He said he could understand the desire of some witnesses to want to Identify them­selves with former President Eisenhower and charge ' that the investigation was a slap at the last administration. But it was the Hanna Co. and not former Treasury Secretary Humphrey that was the obj.ect of the Senate committee's inquiry, he said.

Kennedy said the committee probably would go into operations of other firms as well as of the Hanna CO. ·

That is very interesting, Madam President, and it shows that the Presi• dent of the United States seems to be well informed as to what is going on in connection with the stockpile investiga­tion. I believe it confirms my strong suspicion that there is too much politics connected with this subject.

Mr. ENGLE. Madam President, I have been in public life since 1934, and this is the :first time that a President of the United States has publicly recom­mended that my speech be read. I want it to be recorded as one of the greatest compliments I have ever had paid to me in my public service. I am delighted that my friena from Connecticut took occasion to call attention to it in the CONGRESSIONAL RECORD.

Mr. BUSH. I congratulate the Sena­tor from California.

Mr. ENGLE. Madam President, I suggest the absence of a quorum.

The PRESIDING OFFICER. The clerk will call the roll.

The Chief Clerk proceeded to call the roll.

Mr. ENGLE. Madam President, I ask unanimous consent that the order for the quorum call be rescinded.

The PRESIDING OFFICER. Without objection, it is so ordered.

ADJOURNMENT UNTIL 10 O'CLOCK A.M. TOMORROW

Mr. ENGLE. Madam President, I move that the Senate adjourn, in ac­cordance with the previous order, until 10 o'clock tomorrow morning.

The motion was agreed to; and (at 5 o'clock and 44 minutes p.m.), the Sen­ate adjourned, under the previous order, until tomorrow, Thursday, August 23, 1962, at 10 o'clock a.m.

NOMINATION Executive nomination received by the

Senate August 22, 1962: INTER-AMERICAN DEVELOPMENT BANK

Tom Killefer, of Virginia, to be Executive Director of the Inter-American Development Bank for a term of 3· years and untll his suc­cessor has been appointed.

:ordained the sun and the moon and the stars .and set them in their orbits.

Grant that our beloved colleagues and comrades who are absent from us by reason of illness in homes and hospitals, m,ay be blessed with Thy mini'stry of di­vine healing for the great. Physician, who be.came our Saviour by His suffering and sacrifice, can do · for them more th.ari we can ask or think~

Page 2: HOUSE-OF REPRESENTATIVES - gpo.gov€¦ · incident because of my interest over the ... THURMOND l and myself in particular, as ... That is very interesting, Madam

17326 CONGRESSIONAL RECORD- HOUSE August 23

Inspire us with that greatness and grandeur of soul which surrenders itself with heroic faith to Thy will for Thou hast made us for Thyself and unquiet is our heart untii it rests in Thee.

To Thy name we render the praise and glory. Amen.

THE JOURNAL The Journal of the proceedings of

Monday, August 20, 1962, was read and approved.

MESSAGE FROM THE SENATE A message from the Senate by Mr.

McGown, one of its clerks, announced . that the Senate had passed without amendent bills of the House of the fol­lowing titles:

H.R. 1458. An act !or the relief o! Lee Dock On·

H.R. 6984. An act to provide !or a method o! payment of indirect costs of research and development contracted by the Federal Government· at universities, colleges, and other educational institutions;

H.R. 7638. An act !or the relief of Kim Hyung In Comstock;

H.R. 7736. An act to amend the act of May 13, 1960 (Private Law 86-286);

H.R. 8730. An act for the relief of Sister Mary Alphonsa (Elena Bruno) and Sister Mary Attma (Fil1pa Todaro) ;

H.R. 9915. An act for the relief of Umberto Brezza; and

H.R.11310. An act to amend section 3515 of the Revised Statutes to eliminate tin in the alloy of the 1-cent piece.

The message also announced that the Senate had passed with an amendm~nt in which the concurrence of the House is requested, a bill of the House of the following title:

H.R.12391. An act to improve and protect farm income, to reduce costs of farm pro­grams to the Federal Government, to reduce the Federal Government's excessive stocks of agricultural commodities, to maintain rea­sonable and stable prices of agricultural commodities and products to consumers, to provide adequate supplies of agricultural commodities for domestic and foreign needs, to conserve natural resources, and for other purposes.

The message also announced that the Senate insists upon ·its amendment to the foregoing bill, requests a conference with the House on the disagreeing votes of the two Houses thereon, and appoints Mr. ELLENDER, Mr. JOHNSTON, Mr. HOLLAND, Mr. AIKEN, and Mr. YOUNG of North Dakota to be the conferees on the part of the Senate.

COMMUNICATION FROM THE CLERK OF THE HOUSE

The SPEAKER laid before the House the following communication from the Clerk of the House of Representatives:

The Honorable SPEAKER, House of Representatives.

AUGUST 22, 1962.

Sm: Pursuant to authority granted on August 20, 1962, the Clerk received from the Secretary of the Senate on Wednesday, August 22, 1962, the following message:

That the Senate agree to the amendments o! the House of Representatives to the b111 (S. 2876) entitled "An act to extend the

authority to insure mortgages under sec­tions 809 and 810 of the National Housing Act, and to extend the coverage o! section 810 to include persons employed at or in connection with an installation o! the Na­tional Aeronautics and Space Administration or the Atomic Energy Commission."

Respectfully yours, RALPH R. ~OBERTS,

Clerk, U.S. House of Representatives.

COMMUNICATION FROM THE CLERK OF THE HOUSE

The SPEAKER laid before the House the following communication from the Clerk of the House of Representatives:

The Honorable SPEAKER, House of Representatives.

AUGUSf 21, 1962.

Sm: Pursuant to authority granted on August 20, 1962, the Clerk received from the Secretary of the Senate on Tuesday, August 21, 1962, the following messages:

That the Senate agree to the amendment of the House of Representatives to the bill (S. 1849) entitled "An act for the relief of Stephen S. Chang."

That the Senate agree to the amendments o! the House of Representatives to the bill (S. 2736) entitled "An act for the relief of Arie Abramovich."

That the Senate agree to the amendment of the House of Represen ta ti ves to the bill (S. 2835) entitled "An act !or the relief of Sieu-Yoeh Tsai Yang."

That the Senate agree to the amendment of the House of Representatives to the bill (8. 3039) entitled "An act for the relief of Bartola Marias. La Madrid."

That the Senate agree to the amendment of the House of Representatives to the bill (S. 1005) entitled "An act to amend section 10 and section 3 of the Federal Reserve Act, and for other purposes."

That the Senate passed H.R. 8564, en­titled "An act to amend the Federal Em­ployees' Group Life Insurance Act of 1954 to provide for escheat of amounts of in­surance to the insurance fund under such act in the absence of any claims for pay-ment, and for other purposes." .

·That the Senate passed H.R. 11523,' en­titled "An act to authorize the employment . without compensation from the Govern­ment of readers for blind Government em­ployees, and for other purposes."

That the Senate passed H.R. 12355, en­titled "An act to amend the law relating to the final disposition of the property of the Choctaw Tribe."

That the Senate passed s. 2358, entitled "An act to improve the administration of transfers o! certain real property for wild­life or other purposes by repealing the act o! ].\Jay 19, 1948, and incorporating the es­sential provisions thereof in the Federal Property and Administrative Services Act of 1949, as amended."

That the Senate passed S. 3389, entitled "An act to promote the foreign commerce of the United States through the use of mobile trade fairs."

That the Senate passed with amendment the bill (H.R. 860) entitled "An act to re­peal certain obsolete provisions of title 38, United States Code, relating to unemploy­ment compensation for Korean conflict vet­erans."

That the Senate passed with amendments the pill (H.R. 8567) entitled "An act to au- · thorize the Secretary of the Interior to create trial boards for the U.S. Park Police, and for other purposes."

That the Senate passed with amendments the bill (H.R. 10481) entitled "An act to revise, codify, and enact title 37 of the United

States Code, entitled 'Pay and Allowances of the Uniformed Services.' "

That the Senate passed with amendments the bill (H.R. 10432) entitled "An act to amend title 39, United States Code, to cod­ify certain recent public laws relating to the postal service and to improve the code."

That the Senate passed with amendments the bill (H.R. 10433) entitled "An act to amend title 10, United States Code, to codify recent military laws, and to improve the Code."; and

That the Senate passed with amendments the bill (H.R. 10931) entitled "An act to re~ vise and codify the general and permanent laws relating to and in force in the Canal Zone and to enact the Canal Zone Code, and for other purposes."

Respectfully yours, RALPH R. ROBERTS,

Clerk, U.S. House of Representattves.

LEGISLATIVE PROGRAM FOR WEEK OF AUGUST 27

Mr. BYRNES of Wisconsin. Mr. Speaker, I ask unanimous consent to address the House for 1 minute. . The SPEAKER. Is there objection to the request of the gentleman from Wisconsin?

There was no objection. Mr. BYRNES of Wisconsin. Mr.

Speaker, I take this time for the purpose of asking the majority leader to give us the program for next week.

Mr. ALBERT. Mr. Speaker, on Mon­day 18 bills have been programed under suspension of the rules. They are as follows:

First. Senate Joint Resolution 29: Qualifications of electors amendment.

Second. H.R. 11040: Concurring in Senate amendments to Communications Satellite Act of 1962.

Third. H.R. 12628: Senior Citizens Housing Act of 1962.

Fourth. H.R. 11099: Establish Insti­tute of Child Health and Human Devel­opment.

Fifth. H.R. 12577: Trust powers of national banks.

Sixth. H.R. 12899: Merger, retention of bank branches.

Seventh. S. 3574: Extend Interna­tional Wheat Agreement.

Eighth. S. 3327: Assistance for im­pacted areas.

Ninth. H.R. 12082: Provide maximum security, National Security Agency.

Tenth. H.R. 11363: Industrial secu­rity program.

Eleventh. S. 2429: Virgin Islands Na­. tional Park boundaries.

Twelfth. H.R. 12761: Relief occupants of mining claims.

Thirteenth. S. 1606: Licensing, Fed­eral Power Commission hydroelectric projects.

Fourteenth. H.R. 10542: Repeal In­land Waterways Corporation Act.

Fifteenth. H.R. 4272: Amend, Inter­state Commerce Act, long and short hauls charges.

Sixteenth. H.R. 12833: Amend Air Pollution Control Act.

Seventeenth. H.R. 7195: Add lands to Wasatch National Forest.

Eighteenth. s. 4: Padre Islands Na· tiona! Seashore.

Page 3: HOUSE-OF REPRESENTATIVES - gpo.gov€¦ · incident because of my interest over the ... THURMOND l and myself in particular, as ... That is very interesting, Madam

1962 CONGRESSIONAL ·RECORD- HOUSE 17327 ·Mr. Speaker, each bill under suspen­

sion . is allotted 20 minutes to a side. These bill$ may not necessarily be calied in the order listed. .

Monday is also District Day and there are four bills to be considered. They are:

First. H.R. 10916: False statements, Insurance Act.

Second: H.R. 12418: Regulations to prevent and control the spread of com­municable and preventable diseases.

Third. H.R. 12467: Appointment, Ar­mory Board.

Fourth. S. 3317: Custody of personal property.

On Tuesday, H.R. 10113, the Public Works Coordination and Acceleration Act, with 4 hours of general debate.

For Wednesday and the balance of the week, H.R. 12712, agriculture, ex­periment station research facilities, with 1 hour of general debate.

This, of course, is subject to the usual res·ervation that conference reports may be brought up at any time and that any change in program will be announce& later.

I have also been requested by the chairman of the Committee on Ways and Means, the gentleman from Ar­kansas [Mr. MILLS], to advise that the following bills which have been reported unanimously from the Committee on Ways and Means may be called up under unanimous-consent agreement:

First. H.R. 12719: Tax treatment of Japanese.:.Arnerican evacuation claim awards. · Second. H.R. 5700: Certain contract

carriers authorized to transport bonded merchandise. ·

Third. · H.R. 12529: Free entry of two spectrometers for University of Illinois.

Fourth. H.R. 12820: OASDI agree­ments re certain State and local em­ployees of Arkansas . .

Fifth. · H.R. 12526: 7-year loss carry­forward for regulated transportation companies. · ·

Sixth. H.R. 5260: Repeal of first do­mestic processing tax on coconut oil.

Seventh. H.R. 8754: Tax treatment of ground rents.

Eighth. H.R. 12213: Temporary sus­pension of duty on cork board.

Mr. Speaker, these bills, of course, may not necessarily be called in the or­der in which they have been listed.

Mr. Speaker, will the gentleman yield for a unanimous-consent request to go

according to the newspaper report,- the DISPENSING WITH BUSINESS I~ OR­President would think that would con- DER ON CALENDAR WEDNESDAY stitute a wonderful record of legislative accomplishment in this session. I noted in the five pieces of must legislation in­sisted upon that there was no mention of a so-called pay reform bill or a postal rate increase. I wonder if these are now considered unimportant and not neces­sary to the alleged achievement of this session of the Congress.

Mr. ALBERT. If the gentleman is asking the gentleman from Oklahoma, these are still considered important, and I do not think the list referred to by the President was an exclusive list. It was a list which the President considered very important and without trying to put words in anybody's mouth, it does not mean that there are no other important bills that this House must consider.

Mr. GROSS. I would like to ask the gentleman whether it is anticipated that the so-called U.N. bond issue is likely to come up. That was not programed for the coming week; was it?

Mr. ALBERT. I would think that bill probably will be programed the following week. I am not bound by that, but we have a really heavy schedule next week.

Mr. OROSS. It is so phoney, I would · hope that it is never programed; but · that is my personal opinion of it. I would like to ask the gentleman when it is anticipated that we will get the an­nual multibillion-:dollar foreign hand­out bill?

Mr. ALBERT. If the. gentleman is . referring to the ·foreign aid appropria­tion bill, the distinguished gentleman from Louisiana [Mr. PASSMAN] is here. We hope that the bill will be reported in the not too distant future.

_Mr. GROSS. Some of us would like to know, I would say to the gentleman, at least a few of us would like to know

Mr. ALBERT. Mr. Speaker, I ask unanimous consent that it may be in order to dispense with business under the Calendar Wednesday rule on Wednesday next.

The SPEAKER. Is there objection to the request of the gentleman from Oklahoma?

Mr. AVERY. Mr. Speaker, reserving the right to object, and since I find my­self on this side of the aisle, I want to assure my colleagues on the other side that I have not deserted them-! just happened to be on this side and did not have time to get back on the other side. But I did want to ask a question. As the session opened today, I observed that the other body in their wisdom had added some very questionable amendments to the farm bill and messaged it back to the House. I wonder if the gentleman could advise us as to what we might con­template in the way of developments on these undesirable Senate amendments to this bill and .as to how they might be treated?

Mr. ALBERT. I am sure that we will undertake to send the bill to conference at an early date . and that the matter will be worked out in conference and brought back for the consideration of the House.

Mr. AVERY. Then the House might expect that it might be sent to confer­ence on Monday?

Mr. ALBERT. I would not like to be bound on that question at this time.

Mr. AVERY. I thank the gentleman. The SPEAKER. Is there objection to

the request of the gentleman from Oklahoma?

There was no objection.

REQUEST FOR SPECIAL ORDER whether we are doing right in support­ing some of the domestic appropriation bills that have been called up and which Mr. ALBERT. Mr. Speaker, I ask

. will be called up; whether there will be unanimous consent that today, following any money left in the Treasury when the special orders heretofore granted, that foreigners get through with their de- the gentleman from Hawaii [Mr. mands. I would like to see that legisla- INoUYE] may address the House for 1 tion, I will say to the gentleman, come hour and revise and extend his re­up early in every session so that we could marks and include extraneous matter. be guided as to some of the other appro- The SPEAKER. Is there objection to priations by what happens with reference the request of the gentleman from to the foreign giveaway proposition. Oklahoma? Has the gentleman any further informa- Mr. BROWN. Mr. Speaker, reserving tion with respect to sine die adjourn- the right to object,. I have been trying

over until Monday next? Mr. BYRNES of Wisconsin.

the gentleman.

. ment? We are getting along to : the to ask some questions here for about 15 point where some. of us may have to ask ' or 20 or 30 minutes. So I will reserve

I yield to for absentee voter ballots for the No- . the right to object so that I may ask a vember 6 elections. I would like to question or two. know whether we are going to have to get I would like to know if this so-called

ADJOURNMENT OVER Mr. ALBERT. Mr. Speaker, I ask

unanimous consent that when the House adjourns today, it adjourn to meet on Monday next. . · · . The SP.EAKER. · Is there objection to

absentee voter ballots or wl:lat the story public works bill is the $900 million bill? is going to be. Mr. ALBERT. The gentleman is cor-

Mr. ALBERT. I think the program rect. that has been announced for next week _ Mr. BROWN. The poll -shows all indicates the extent to which the leader- right now, does it? ship is trying to expedite the business of Mr. ALBERT. We are confident that this session. . the bill will be enacted or we would not

the request of the gentleman from . Mr. GROSS. I hope the gentleman is be anxious to bring it up. Oklahoma? right. All I can do is live in hope, if I · Mr. BROWN. · The joint resolution

Mr. GROSS. Mr. Speaker, reserving die in despair as the old saying goes. the gentleman mentioned as No. 1 and the right to object, I noted in. the morn- The SPEAKER. Is there objection No. 2 on the list; is that better known ing paper a list of five must bills or five to the request of the gentleman from as the anti-PQll-tax resolution? pieces of legislation that the President Oklahoma? Mr. ALBERT. The gentleman is cor-says must be passed, and then it seems, There was" no objection. rect.

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17328 CONGRESSIONAL RECORD- HOUSE August 23 Mr. BROWN. And the maximum se­

curity bill, is that the one that was ob­jected to several times on the Consent Calendar?

Mr. ALBERT. This is a bill from the Committee on Un:..American Activities.

Mr. BROWN. Yes, the Walter bill. Mr. ALBERT. It was on the Consent

Calendar at one time. Mr. BROWN. And the agricultural

bill. The gentleman just stated, as I understand, that an attempt will prob­ably be made to send that to conference rather than back to the committee.

Mr. ALBERT. If the gentleman will not insist, I would like to defer comment­ing upon that matter at this time, be­cause we have no intention of trying to send that bill to conference or com­mittee this week or until we discuss the matter with the gentleman from North Carolina [Mr. CooLEY], chairman of the Committee on Agricutlure.

Mr. BROWN. The reason why I am asking is because as a member of · the Rules Committee I would like to get an idea of the lineup of the work we may have to do.

Mr. GROSS. Mr. Speaker, will the gentleman yield?

Mr. BROWN. I yield briefly. Mr. GROSS. There are a few highly

controversial bills on the suspension list, as I understand. Does this mean that the Rules Committee has been disbanded and that we no longer have a clearing house for legislation in the Rules Com­mittee?

Mr. BROWN. The Rules Committee has cleared a great many bills. I am not sure which.

Mr. GROSS. The House does not ex­actly work its free will on bills under suspension, does it? Would the gentle­man agree to that?

Mr. BROWN. There can be no . amendments offered.

Mr. GROSS. And debate is strictly limited to 40 minutes on a bill.

Mr. BROWN. I hope the Rules Com· mittee will not be blamed for that.

Mr. GROSS. I am not blaming the Rules Committee. I do not know why the Rules Committee has been bypassed.

Mr. BROWN. Mr. Speaker, I with­draw my reservation of objection.

The SPEAKER. Is there objection to the request of the gentleman from Oklahoma?

There was no obj_ection.

AUTHORIZING SALE OF' MINERAL ESTATE IN CERTAIN LANDS

Mr. ASPINALL. Mr. Speaker, I ask unanimous consent to take from the Speaker's table the bill (H.R. 8134) to authorize the sale of the mineral estate in certain lands, with Senate amend­ments thereto, disagree to the amend­ments of the Senate and ask for a con­ference.

The Clerk read the title of the bill:· The SPEAKER. Is there objection to

the request of the gentleman from Colorado?

The Chair hears none, and appoints ·the following conferees: Messrs'. EDMOND-

SON, ROGERS of Texas, MORRIS, SAYLOR, and WHARTON.

DISPOSITION OF' MINERAL INTER· ESTS IN CERTAIN PUBLIC LANDS IN PIMA COuNTY, ARIZ. Mr. ASPINALL. Mr. Speaker, I ask

unanimous consent to take from the Speaker's table the bill <H.R. 10566) to provide for the withdrawal and orderly disposition of mineral interests in cer­tain public lands in Pima County, Ariz., with Senate amendments thereto. dis­agree to the amendments of the Senate and ask for a conference.

The Clerk read the title of the bill. The SPEAKER. Is there objection to

the request of the gentleman from Colorado?

The Chair hears none, and appoints the following conferees: Messrs. EDMOND· SON, ROGERS of Texas, MORRIS, SAYLOR, and WHARTON.

APPLICATION OF' CERTAIN LAWS TO AMERICAN SAMOA

Mr. ASPINALL submitted a conference report and statement on the bill <H.R. 10062) to extend the application of cer­tain laws to American Samoa.

PUBLIC REACTION TO FOUNDA­TION STUDY

Mr. PATMAN. Mr. Speaker, I ask unanimous consent to address· the House for 1 minute, to revise and extend my remarks, and to include extraneous matter.

The SPEAKER. Is there objection to the request of the gentleman from Texas?

There was no objection . Mr. PATMAN. Mr. Speaker, on

July 23, 1962, and August 20, 1962, I presented to the House the first and sec­ond interim reports of the investigation of tax-exempt foundations by the House Select Committee on Small Business. They appear in the CONGRESSIONAL REC• ORD of those dates. Since then, I have received literally thousands of letters of encouragement, advice and com­mendation from all parts of the United States.

The reactions to our investigation will no doubt be of interest to the Members. I, therefore, wish to insert in the RECORD at this point excerpts from a few of the letters received to date:

Re fouztdations and tax exemption-you are so right. I served as a director of one for 25 years and can therefore express a modestly informed opinion.

So here's a tip o' the hat to you. C.G.F., Media, Pa.

. I fully agree with your statement as it was reported in the New York Times that founda­tions constitute a serious loophole in the tax law as well as a means of diverting large amounts of public ~oney to private pur· poses.

W:P., BerkeZey, Calif.

I observe from the papers that the ina.tter of operations of foundations ls st111 in yoilr mind. I agree with you heartily that this area needs thorough cleaning. I have written to you heretofore in this regard. It is my contention that such organizations which make any charge for their services are in business; that their income from invested funds are taxable income; that donations to them should not be tax exempt.

F.K.J., Berwyn, Pa.

All people who know of the workings of these trusts will wholeheartedly support an investigation of these trusts, and also an investigation of the faithfulness of the Treas­ury Department in passing upon the eligi­bility of these trusts for exemption.

God · bless you for your courage. N.A.B.,

Vista, Calif.

I have read your comments with much interest, in the press recently in reference to foundations.

It has been most unbelievable in the past years to see our Congressmen sit and watch these multi-billion foundations grow as they have-and let so few people become so pow­erful in their operations. In my humble opinion they were set up to begin with­are now and wm always-be-in the final ·analysis for tax evasion.

B.L., Big Spring, Tex.

The press reports indicate that a job that needed doing has been well done by you and your committee. I'd welcome studying the results.

P.W.B., New York, N.Y.

These ·foundations, in my opinion, are do­ing this country a great deal of harm with one hand and fooling the American people by the few good things they do. We sup­port your move to investigate this situa­tion.

H.L., Bellaire, Tex.

It is heartening to read of your stand on tax-free foundations. These have been (to public knowledge in most instances) such a blatant., outrageous disregard of the or­dinary individual's good intentions toward his d_uties as a citizen. Perhaps thls type of honest action will help alleviate the cynical and often helpless feeling so many people-­including our teenagers and young adults-­have towa:t'd "big money" and our own Gov­ernment.

Thank you for your courageous 'stand. L.D.,

Scarsdale, N.Y.

We are taking this opportunity to thank you for your very rare courage in regard to tax exemption for foundations.

R.S., Baldwin Park, Calif.

Thank you for trying to plug the big loop­hole such as tax exemption for founda­tions.

c.w.c., Bethell, Wash.

Thank you for your fine courage in the investigation of tax-exempt foundations.

M.M., Santa Barbara, Calif.

I urge you to push the investigation of the tax dodging of tax-exempt foundations.

J'.EX.. Dallaa, Te:z:.

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1962 CONGRESSIONAL RECORD -- HOUSE 17329 Representative WRIGHT PATMAN_ of Texas,

~hould b,e thanked for his courage before Congress on . July 23, 1962, in which he charged that present laws permitting tax­exempt folJ.ndations to become legalized tax dodgers. Many foundations are engaged in commercial and miscellaneous activities which disqualify them for tax exemption.

H.R., Lewiston, Idaho.

Just read what you are trying to do about the tax-exempt foundations. Thank God there is someone awake to what is going on in that crooked thing.

God bless you in your work. Is there any­thing we can do to help?"

G.G., Hibbing, Minn.

An investigation into all tax-free founda­tions is long overdue.

Thank you for your time and effort you have given this important matter.

L.M., Los Angeles, Calif.

Although I am a registered Republican, but thought once -to vote Democrat and did, I now come upon another Demo.crat who comes up With some soun(l and proper rea­soning; this is in your thought to have a tax on tax-exempt foundations and charita­ble trusts;

J.S.W., New York, N.Y.

For some time I have followed· the workings of these foundations and it sickens me to see what they are doing with our mon~y.

A.H., Norfolk, va.

I want to congratulate you and ~our com­niittee for looking - into the tax-exempt foundations.

S.E., Wichita Falls, Tex.

We commend you for your determination to investigate the foundations engaged in various commercial activities to avoid tax payments. · The. foundations not concerned With charitable, educational, or welfare ma,t­ters should pay their fair share of taxes.

C.R., Pacific Palisades, Calif.

I want to thank you for your courage and yoilr stand you are taking against · the tax­exempt foundations. There are many,- many more who feel the same as I do. You .surely will get support from the grassroots-so keep up the good work. ·

R.C.H., North Miami, Fla.

It is my considered opinion _' that these matters shoUld . have been gone into long before this for · the benefit · or· our national econoniy and other aspects of the people as a whole.

J.M.C., St. Marys, Pa.

Keep up the good work ~o . imP9se _a moratorium on tax exemptions for founda­tions.. This is legalized tax dodging. Please continue your effort. ' . .

. R.R.s.;­Los Angeles; Calif.

We want to thank you and congratulate you on the inquiry you are conducting in respect to .tax exemp'l! foundationa. .

In 1762 , we h~ , ta_xation wi1!hou,t , repre­sentation, today in 1962, all acrosS th'e board', we have too much representation ·without taxa:tion. · · · · ·

. Can we have a true return to fiscal respon­sibility unless every individual a_nd every enterprise really is made to feel the tax. bit?

A.W.M., Jr., Greensboro, N.C.

I ·do not happen to be in your district, but as a Texan we are both much interested in your report and investigation of alleged charity foundations as a vehicle to shift the taxes to the small man. I wish to congratu­late you in grappling with this abuse and . public problem. * * · * Thank God there are a few conscientious Congressmen left, who will go after and into .such matters.

A.C.M., San Antonio, Tex.

I want to commend you and ali other Representatives who are fighting to stop any tax exempt foundations that are not worthy of it. ·

A.B.S., North -Miami Beach, Fla.

Would like to commend you and your committee for tackling the _untouchables.

B.S., Bakersfield, Calif.

You are tope congratulated on your work. Hope it can ·be carried much further.

F.S., Santa Ana, Calif.

I heartily agree with your conclusion, and it is interesting to note that your announce­ment came after a lengthy inquiry into this

. question. · I hope that your suggestion will receive the widespread support it deserves. . ·

R.A.W., · St. Petersburg, Fla.

I have read with interest ·an AP report on your investigation of tax exempt founda­tions. I think this is a well worthwhile .project, and will withour doubt bring out plenty of abuses.

J.B.F., Sr., Towson, Md.

Please dig to the bottom of this founda­tion fraud to escape taxation. * * *

Thanks and congratulations. Your · com­mitte~ is doing a long overdue job. You will meet much opposition. But you will be do­ing a great patriotic service.

~.C.J., Birmingham, Ala.

. It is my feeling that a thorough investi­gation of tax-exempt foundations ·is long overdue and would urge you and other of our Representatives to press for such. ·

s.s.w., Long Beach, Ca_lif.

I am convinced that all institutions who are presently granted tax-free status should be reexamined to determine what these foundations are' doing, how they are doing it ·and whether they . are as they claim. -

M.E.H., .. York, Pa.

Congratulations and . a thousand . bravos for your wonderf'ul work and that of your committ~e. · · . ,

· Terrific pressures will be brought to bear upon YoU and your committee to' go. soft on ·au this . . But ·do not be deterred; .. Do not falter . . Be of good COUrage . . : .- .

" A.M., Neiv Yo_rk;, ~~Y.

I am grat.eftil to you for . your courage in exposing the present laws which legalize tax dodging by tax-exempt · foundations.

E;M.P., Omak, Wash.

Thank you for your rare courage on the tax-.exempt foundations issue.

J.M.H., Chicago, Ill.

An intellige:nt citizen knows these phony institutions are nothing more or less than a device to cheat . the Government out of income taxes. Why are they allowed to get away with these crooked deals? Or do our tax laws need an ·immediate revision?

. LB~ .

. Miami Beach, Fla.

Certainly tax laws need an overhauling with all this tax exemption and loopholes putting more and more of the tax burden on th~ little guy. . "

H.J.N.; Detroit, Mich.

We are watching with intense interest your uncoverings regarding tax-~xempt found~tions. Keep up good work.

H.N., Detroit, Mich.

Read in the Miami Daily News, Sunday, July 22, that as chairman of. the Small Business Committee you are going to in­:vestigate the tax-exempt foundations. HallelQjah. It is long, long overdue.

_T.F.A., Miami Beach, Fla.

I'm grateful to you for looking into the tax exempt foundations. I have no way of knowing but I've long believed that too many so-cal~ed foundations get away with that, while poor devils like me has to get it up.

S.E.J., Butler, N.J.

We are writing to commend your cur­rent investigation into tax-,free foundations. Keep up the good wor~.

C.A.T., Signal Mountain, Tenn.

We wish to cohimend you for your courage shown in your speech before Congress July 23, 1962, in stating that present laws permitting the establishment of tax-exempt foundations have · resulted in legalized tax dodging, and were leading to the accumla­tion of great wealth by relatively small groups.

E.J.B., Wahpeton, N.Dak.

Congratulations to you for your efforts to bring the tax-free foundations to account. 'Tiley should be made to pay taxes.

R.B.E., Jr., Indianapolis, Ind.

I am glad to see that you are beginning to investigate the tax dodging and_ political activities of the 45,124 tax-exempt foundations.

G.S.R., · BOS1J?e_ll, N. M ex.

I urge· you to continue to fully investigate -the laxness by the Internal Revenue Service and yiolation·s of ' the Treasury Department reg-qlations by foundations.. You are correct in the statement that . foundations are . far more dangerous _ than anything· .that has happened in the past in t~e way of .con~

centration Of ec'onomic power. · · . . ' . W.G.R., ·

Scribner, · Nebr.

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17330 CONGRESSIONAL RECORD- HOUSE August 23 I read with interest your news article in

the Wall Street Journal dated July 23, 1962. To put it modestly, I wholeheartedly concur with you. However, I wrote Mr. Douglas Dillon along these lines a few months ago and finally received an answer from about a third assistant with no encouragement.

H.B.C., Prairie Village, Kans.

Oh, this is wonderful. I never thought that a Senator or a Congressman would have the temerity, the intestinal fortitude to move against the entrenched might of the foun­dations. God bless Texas.

I.H., Louisville, Ky.

Well at long last. It certainly is en­couraging to see that someone is not afraid to tackle this problem. I am referring, sir, to your investigation of tax-free founda­tions.

F.M.C., Cambridge, Mass.

It was indeed gratifying to me to read the enclosed clipping from the Cincinnati En­quirer. In my opinion, an investigation of tax-free foundations 1s long overdue.

Furthermore, these tax exemptions have caused tremendous tax burdens to be trans­ferred from these foundations to the backs of the low income taxpayers, and probably are the cause of the present deplorable state of our Nation's fiscal affairs.

I know you will have formidable opposi­tion in this task but shall be praying for your success.

P.H.K., Cincinnati, Ohio.

CAMPAIGN FUNDS Mr. DORN. Mr. Speaker, I ask unani­

mous consent to address the House for 1 minute and to revise and extend my remarks.

The SPEAKER. Is there objection to the request of the gentleman from South Carolina?

There was no objection. Mr. DORN. Mr. Speaker, I have in­

troduced today a bill which would pro­hibit campaign contributions from crossing State lines to influence elections for the National House of Representa­tives, U.S. Senate, the Presidency, and presidential electors.

Representative government in the United States is rapidly becoming a mockery and a fraud. Election to o:Hice is becoming a question of who can ob­tain the most money. We see vast money raising schemes being conducted in Washington and New York to influ­ence elections in· other States. We hear mention of campaign contributions in off -election years and even when a can­didate has no opposition. Pressure groups raise fantastic campaign "slush

- funds" which in turn are poured into a given area to influence those seeking Federal representative .o:Hice. Some money even comes into the United States from abroad to influence elections.

The framers of our Constitution in­tended for each State to be sovereign, to choose their own national representa­tives, and send them to a Federal Con­gress representing that particular State. Likewise presidential electors should be selected and presidential primaries should be conducted within a State with-

out outside pressure, financial or other­wise.

We hear reports of $100,000 being spent in National House races and $1 million in Senate races. Much of this money travels across State lines and often from points thousands of miles away. This is a threat to our form of government and to our entire way of life. This situation warrants the urgent attention of the Congress. The Congress can and must correct this shocking trend and reassure the American people.

QUALITY STABILIZATION Mr. RANDALL. Mr. Speaker, I ask

unanimous consent to address the House for 1 minute and to revise and extend mY remarks.

The SPEAKER. Is there objection to the request of the gentleman from Missouri?

There was no objection. Mr. RANDALL. _ Mr. Speaker, I take

this time to present some thoughts on the principle of quality stabilization which is expressed by several bills intro­-duced both on the House and Senate sides, including H.R. 10335, by the gentle­man from Indiana [Mr. MADDEN].

Our office has received quite a substan­tial volume of mail inquiring of the de­tails of this proposed legislation and it is for this reason we take the floor to make an effort to summarize in as brief manner as possible what is proposed and what may be the objectives to be accom­plished.

In recent years there has been a growth or increase in what might be best described as devastating methods of merchandising that are causing exten­sive damage not only to the retailers but also to manufacturers, wholesalers, and even consumers throughout the country. It seems that unfortunately within the last few years the marketplace of America has become infested with some "fast buck" sellers. It is argued the principle of quality stabilization would provide a tool to curb these practices that are injurious to all merchandising. For example, most of these bills spell out what constitutes misleading advertising, deceptive pricing, and published misrep­resentations.

Very simply stated, this legislation gives the right to an owner of a trade­mark to elect to come under quality stabilization; and if the manufacturer so elects, the distributor and retailer must cooperate in maintaining the sta­bilized price of that trademark product. After a product has been quality stabi­lized, the brand-name owner can revoke the right of a retaile;r to sell his product, if the retailer violates the manufacturer's provisions: If, subsequently, a whole­saler or distributor disregards the revo­cation order and continues to supply offending retailers, the manufacturers can institute a civil suit for damages.

It is most refreshing that this legisla­tion calls for no Government supervision. There will be no new bureau or depart­ment to supervise or enforce the quality stabilization law. This bill is not fair trade legislation and it is not a price-

:fixing measure. It is 100 percent op­tional. This is the most important thing to remember that everyone must realize that the use of the provisions of this law, if and when it is passed, is com­pletely optional or completely voluntary for the manufacturer, wholesaler, and retailer.

Here are some statistics which we be­lieve to be important: There are about 2 million retailers in America and 88 per­cent of them operate in only one location or store. Seventy percent of these re­tailers individually own their own busi­ness, and over 75 percent of ·them have annual sales under $100,000. There are about 165,000 merchandise wholesalers in the United States and 91 percent of them operate unincorporated businesses, and 75 percent operate from only one building.

Quality brands mean nothing more or less than well-known brands with a repu­tation for reliability and excellence of product. It is these brands that are taking it on the chin; because if these brands did not enjoy such an excellent reputation, they would be of no interest to the discounter who needs a tramc builder for his kind of selling. Now we think we should be specific and point out exactly what are some of the trade prac­tices that call for enactment of this sort of legislation. These practices are: First, intentional misrepresentation in advertising as to make, model, size, ·and age; second, bait and switch merchan­dising tactics; third, price slashing or loss-leader methods even in some in­stances far below cost to build traffic into a store. Where the foregoing is now happening, a law of this sort is certainly needed to try. to: First, stop disintegra­tion of- the brand-name system of dis­tribution; second, arrest the growing rate of failure of small retail businesses; third, provide an incentive to the manu­facturer to continue to build an excel­lent product; fourth, protect the con .. sumer from junk merchandising after he has been lured into a store by bait and switch merchandising tactics.

Let us now describe in detail how this bill would work. First and foremost, the manufacturer must elect to come under the provisions of the act and take ad­vantage of the provisions of the law. Then he would be required to publish a specific retail price at which his trade­mark product must be sold. This is not to say that he can never change his spe­cific price because the interaction of competitive forces will always insure the consumer that the manufacturer's price represents fair value. Get this straight, any price established under this law will be at the manufacturer's peril and this is exactly the way the free enterprise system should function.

If a retailer violates the specific price schedule, the manufacturer may revoke the right of the offending retailer to make further sales. But this provision is not a one-way street. There are some obligations imposed on the manufacturer as well. He must exercise diligence in revoking the rights of the retaUer who commits an act of unfair competition; and if he does not do this promptly, it

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1962 .CONGRESSIONAL RECORD ,_ HOUSE 17331 will constitute a valid defense against any damage suit brought under this law. No longer.will the manufacturer have the convenient excuse that he cannot protect his reseller against unfair competitors.

Please never be misled to believe qual­ity stabilization is fair trade, because it contains none of the usual fair trade language. There are no provisions for contracts. There is no dependence on a

· nonsigner clause as in fair trade. Fair trade is a procedure of enforcement to compel a dealer to raise the price of his product. On the other hand, quality stabilization is an action akin to tres­pass~ to stop a reseller from abusing a manufacturer's property right in, the use of his trademark. This whole prin­ciple of stabilization is but the confir­mation by Congress of the unanimous decision of the Supreme Court case in Old Dearborn Distributing Co. v. Sea­gram Distillers Corp. (299 U.S. 183 0936) ) which held that a manufacturer does have property rights that are sym­bolized in his trademark. This case ,points the way and about all the quality stabilization bill adds is to describe or~ spell out ways the manufacturer may protect his trademark as it moves through the channels of distribution.

Another question that has been raised is whether quality stabilization conflicts with the Sherman Act. The answer is that any group of manufacturers who effect collusive price fixing between themselves would be courting the same prosecution as the heavy electrical firms and their executives experienced not long ago. .

Before going on, we should very quickly put the question: Will quality stabiliza­tion promote competition? We believe it will, because it is up to the manufac­turer to make the first basic marketing decision; and just as there is no arm twisting against the manufacturer, so will the wholesaler and retailer be free and unfettered as to whether they wish to handle quality stabilized products or deal in a competitive, unstabilized product.

Let us not forget, a retailer may han­dle both top-brand lines that are stabi­lized, and others on which he may wish to vary his price. It is ' his decision as to the stabilized brands. He cannot any longer misrepresent .as to size, model, age, or other details, or use bait and switch merchandising tactics, or sell be­low the manufacturer's published price, but he is not stopped from carrying mer­chandise that has not been stabilized. The only difference is, the unprincipled retailer cannot take advantage of a good product by running loss-leader ads. This stops the type of pricing that misguides customers, because for every $1 spent by customers lured into the store by bait advertising, the same customer will

-spend $9 for inferior products at the reg­. ular or higher price.

.The worst part of this sort of .thing is that when the customer counts up his gains and losses, he may soon come to dislike the honored product that lured him into the store;· and even worse, this same 1oss-leader advertiser may very

: quickly drop one name-brand product and pick up another to once again, tem-

porarily, pack his store with unsuspect­ing customers.

Quality stabilization will not lead to a restricting or narrowing of available products, but the very opposite will be true, particularly if the retailer carries both a stabilized and unstabilized prod­uct, because then the customer can buy that which he sees: First, quality a~d price, or second, price alone. The re­tailer can give the customer an excel­lent, durable, high quality product, and in the same store offer the products of lesser quality whose price might fit the customer's pocketbook or his limited needs.

Just as the retailer may carry both stabilized and unstabilized products, so, also, there will be some manufacturers who will make brands that are stabilized and in the same plant may make prod­ucts that are not stabilized.

What about the discounters? Will this put them out of business? The answer is an emphatic "No," because the discounter has just as much latitude, or as many alternatives or optional rights as does the manufacturer, retail­er, and the consumer. The discounter is optionally free to refuse to handle stabi­lized products or else carry some stabi­lized items and many not under stabiliza­tion, just as any other merchant.

If put into use, we think it is a safe bet to predict that the greatest byprod-

. uct of the principle of quality stabili­zation will be a drastic reduction in the number of small business failures. Equally important is the fact that in no way will the consumer be injured, but he will receive a· distinct benefit because he will be given a standard with which to measure quality-being provided with a kind of yardstick against entrapment of loss-leader ads and bait and switch tactics.

Then, with all the advantages and at­tractive features, who can be the oppo­nents of this legislation and what can the opponents say against it? The only possible opposition would be those who are the offenders against historical retail methods, those who prefer to be un­principled, and those who have shown a preference to be unethical and mis­leading. They can oppose this bill only

. by using the smear tactics by calling it

. fair trade and price fixing, but even these opponents know it is not fair trade because there is no Federal enforcement department arid its provisions simply provide for options clear across the spec­trum from the manufacturer, to tpe re­tailer, to the consumer. ·

It is little wonder, then, that over 70 national organizations have approved the principles of quality stabilization. We will not list them all, but they in­clude the field of hardware, office ma-

. chines, sporting goods, retail clothing, furniture, jewelry, air conditioners, drugs and pharmaceuticals, and almost every type of product handled by small business.

We have heretofore hesitated to en-. dotse this measure until we had an op­portunity to carefully consider how the principles of stabilization would apply and to determine whether there are any real or valid arguments against stabili-

zation. We ·have not been able to find anything to support the charge that this is either fair trade or price fixing.

We hope the measures embodying the principles of stabilization will be re­ported by the committee and that the membership of the House may work its will at this session. We feel ·sure that if all Members fully understand quality stabilization, they will support it whole­heartedly.

I

CUSTOMS INSPECTION OF CERTAIN PRIVATE AffiCRAFT ARRIVING FROM CANADA OR MEXICO Mr. BLATNIK. Mr. Speaker, I ask

unanimous consent to address the House for 1 minute and to revise and extend my remarks.

The SPEAKER. Is there objection to the request of the gentleman from Minnesota?

There was no objection. Mr. BLATNIK. Mr. Speaker, on June

5 of last year I introduced a bill, H.R. 7450, which. provided that private air­craft traveling between the United States and Canada or Mexico would not be required to reimburse the United States for extra compensation paid to customs officers and employees.

This bill had the support of the Air­craft Owners and Pilots Association, the Flying Farmers Association, the National Association of State Aviation Officers, the International Northwest Aviation Council, and other aviation organiza-tions. , ·

It has become apparent, however, that no action is to be taken on this meas­ure by the House Committee on Ways and Means, probably because it is not considered consistent wtth a principle established some time ago that customs services furnished for the benefit of parties in interest should be self -sustain­ing to the fullest. extent possible. Though I am about to introduce legis­lation using a modified approach for

. alleviation of this vexing problem, I be­lieve that the approach used in my earlier piece of legislation is the pre­ferred course to follow, since it is clear­ly to our benefit to equalize our restric­tions on private aircraft flying from Canada and Mexico into the United States with the restrictions applied in those countries. Motorists pay nothing for holiday inspections and pilots enter­ing Canada pay .only the cab or carfare-­about $1-of the Canadian inspector. In contrast, the United States levies charges-sometimes as high as $50 for a few minutes' inspection-on private

. pilots entering the United States from Canada or Mexico on Sundays or holi­days.

Under the present system, the U.S. Bureau of Customs requires the compu­tation of actual com.pensat.ion and ex­penses for each pilot entering the United States on a Sunday or holiday. Let me illustrate how this works: The first pilot entering the United States on a holiday pays ·the .equivalent of the inspector's salary for 2 days. - If the second pilot comes ·through that station on the same day, he is charged only half as much ~s the first one. If five aircraft clear on

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17332 · CONGRESSIONAL RECORD- HOUSE August 23

this Sunday or holiday, only the last one across is charged the correct pro rata fee. By that time the pilots who have pre­ceded the last one through the check­point have taken off in disgust after long waiting. Later, the Bureau of Customs, in accordance with the law and its regu­lations, makes out refunds and mails them to the overcharged pilots, provided t h ey can be found.

This system certainly causes a great deal of hardship and is in essence a very inequitable one, since the delays to the first pilot through the checkpoint can be very costly, as well as very annoying.

So, let me say that my original bill, H.R. 7450, sought to abolish a most un­necessary and annoying practice. Also, since motorists entering the United States from Canada ' or Mexico are not required to pay the salaries of the Bureau of Customs employees who make border inspections, it hardly seems just to charge personal and executive aircraft for the expenses incurred by the U.S. Bureau of Customs. The result is that tourists, flying for pleasure, frequently must cut short a holiday to avoid arriv­ing at the port on a Sunday, unless they are willing to pay the Government a fee considered most excessive and discrimi­natory. Again I point out that further embarrassment is caused by the fact that the Canadian Government pays its own inspectors and the pilot is at no time charged more than the small transporta­tion fee required to bring the officer to the airport.

Unfortunately, the Customs Bureau itself is bound by the provisions of the

, Tariff Act of 1930 to pay its inspection officers premium pay for nights, Sun­days, and holidays, and to pass this charge on to. private persons clearing customs. Automobile tra:mc has been exempted by law from the requirement to reimburse the Government for over­time services of Customs personnel, but not so tra:mc by air. Also, the Comp­troller General has held ·that a flat rate cannot be prescribed to cover the reason­able estimated costs of inspection of pri­vate aircraft arriving from Canada and Mexico during overtime periods and on Sundays and holidays. Under existing law, then, the computation of actual compensation and expenses is required for each transaction. It is this require­ment that brings about the annoying situation I mentioned earlier, whereby the first pilot cleared on a Sunday or holiday pays the full cost of the inspec­tor's salary for 2 days and then is re­imbursed for the amount that he paid in excess of his pro rata share, which is determined at the end of the day by di­viding the inspector's salary and other expenses by the number of pilots cleared.

Mr. Speaker, the Department of the Treasury and the House Committee on Ways and Means apparently do not wish to disturb the provision in title 5, United States Code, section 14_0, which states that it is the sense of Congress that serv­ices furnished for the benefit of parties in interest shall be self -sustaining to the fullest extent possible. I have, there­fore, prepared legislation which would at least do away with the annoying and

costly current method of prorating the costs of inspection of private aircraft arriving from Canada or Mexico, while at the same time preserving the prin­ciple established under title 5, United States Code, section 140, requiring that services furnished to the parties in in­terest should be self -sustaining to. the fullest extent possible. The cumbersome and burdensome system whereby the operator of each plane is required to deposit reimbursement for the cost of customs employees' extra compensation in an amount equal to what his share will be if no additional planes arrive that day would be replaced under my bill by a more reasonable and less costly sys­tem-the use of flat fees or fixed rates of charge to cover the reasonable esti­mated costs of providing the services involved.

This legislation would require the Sec­retary of the Treasury to prescribe a flat fee as fixed rate through use of cer­tain reasonable criteria to assure that the Bureau of Customs will receive reim­bursement for most of the cost of services provided. This system would also sub­stantially reduce the cost of administra­tion, and, more importantly, would be more advantageous to the pilots being cleared on Sundays and holidays.

The text of the bill follows: H.R.--

A bill to amend the Tariff Act of 1930 to provide that any payment or reimburse­ment to the United States required by s.uch Act for extra compensation paid customs officers and employees on account of pri­vate aircraft traveling between the United States and Canada or Mexico shall be on the basis of flat fees prescribed by the Secretary of the Treasury Be it enacted by the Senate and House of

Representatives of the United States of America in Congress assembled, That section 647 of the Tariff Act of 1930 (19 U.S.C. 1647) is amended to read as follows: "SEC. 647. EXTRA COMPENSATION OF CUSTOMS

OFFICERS IN CASE OF PRIVATE AmCRAFT TRAVELING To OR FROM CANADA OR MEXICO.

"In the case of a private aircraft arriving in the United States from Canada or Mexico or departing from the United States to Can­ada or Mexico, the amount required by sec­tion 451 or any other provision of this Act to be paid or reimbursed to the Government on account of extra compensation and ex­penses of customs officers and employees as­signed to duty ip. connection with the lad­ing or unlading of merchandise, baggage, or persons shall be determined on the basis of a flat fee or fixed rate of charge covering the reasonable estimated costs of providing the services involved. Such fee or rate of charge shall be prescribed by the Secretary of the Treasury by regulation, and shall be measured by-

"(1) the average cost per hour per man of furnishing such services;

"(2) the estimated number of arrivals and departures during the period or periods in­volved;

"(3) the estimated amount of merchan· dise, baggage, and persons to be processed during such period or periods; and

"(4) any other standards reasonably re­lated to the services provided. As used in this section, the term 'private aircraft' means any craft or other contriv­ance used as a means of transportation through the air which is not used to carry passengers or property for hire."

SEc. 2. The fourth sentence of section 451 of the Tariff Act of 1930 (19 U1S.C. 1451) is amended by inserting before the period at the end thereof the following: ", and shall apply to the lading or unlading of mer­chandise, baggage, or persons arriving in the United States from Canada or Mexico or departing from the United States to Canada or Mexico by private aircraft only in the manner provided in section 647".

SEc. 3. The amendments made by this Act shall apply only with respect to aircraft ar­riving in or departing from the United States on or after the first day of the second cal­endar month which begins more than 20 days after the date of the enactment of this Act.

COST OF AGRICULTURAL PROGRAMS

Mr . . MICHEL. Mr. Speaker, I ask unanimous consent to address the House for 1 minute, to revise and extend my remarks, and to include two letters.

The SPEAKER. Is there objection to the request of the gentleman from Illinois?

There was no objection. Mr. MICHEL. Mr. Speaker, all of us

have been concerned about the cost of the agricultural programs, and the ad­ministration has gone to great lengths to tell the American people how their program will save the taxpayers millions and even as high as a billion dollars.

When the first farm bill was offered b:r the administration and defeated in the House earlier this year, it was beaten down with the help of discerning Demo­crats from the urban centers who were simply getting fed up with the cost of the program. Secretary of Agriculture

, Orville Freeman . is well aware of this, and so we find him in recent weeks going all out to entice the urban centers back into the fold in support ·of his Depart­ment's activities.

Just a few weeks ago the food stamp plan was extended to 26 new congres­sional districts, 25 of which are now rep­resented by Democrats in the Congress.

Now today, in this morning's mail, I received-as I am sure all of the other Members of the Congress received-a letter from the Secretary of Agriculture which reads as follows:

Hon. ROBERT H. MICHEL, House of Representatives, Washington, D.C.

AUGUST 22, 1962.

DEAR MR. MICHEL: I send you the enclosed "Packet for the Bride" as an example of our latest efforts to extend the services of the Department of Agriculture to consu~ers. We shall be glad to make this packet avail­able to you for your constituents as you may suggest.

One of the least known facts about the Department is that a large proportion of its activities has to do with consumers. I be­lieve it is important to make these services

' known if we are to fulfill our responsibilities to all the people.

"Packet for the Bride" contains 10 publi­cations that have been avallable to you reg­ularly on the congressional lists. By en­closing them in an attractive, inexpensive folder, we are able to draw the attention of new homemakers, who probably are most in need of this type of information.

You may want to add a transmittal letter in sending this packet to your constituents, perhaps ut111zing our regular list 3, now used by many Members in offering bulletins to homemakers, Our Office of Information will

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196B · CONGRESSIONAL RECORD- HOUSE 17333 chalige 10 bulletins to your bUlletbl quota account t.or each packet your ofilce requests. The packet will be · f.Ol'Wal'ded to your ofilce or mailed uPder ,your frank. aa you direct.

1 shall be glad to have your comments on this packet and any .suggestions on publica­tions to be included 1n it. You may 'Selld requests for the packet to the Congressional Section, Oftlce of Information (Code 111, extension 3365 or 4303) 1n the same way you request bulletins available on our congres­sional lists 1 and 3.

Sincerely yours, Oavn.LE L. FREEMAN.

The "Packet for the Bride,, . enclosed with tthe letter, is all done up in. a pink and white ·outer folder, complete with folders advising the bride how to buy eggs, butter, and cheese--the latter be­ing 18 pages. in length and probably due to the ever-increasing amounts now be­ing stored in Government warehouses as a result of the Secretary's arbitrary raising of dairy price supports soon after he came into office.

Then, too~ there is a bulletin on "U.S. Grades for Beef," ~'Home Care of Pur­. chased Frozen Foods," "Shopper's Guide to U.S. Grades for Food," a 96-page booklet entitled "Family Fare Food Management and Recipes," a "Food for Fitness" pamphlet,. another entitled "Detergents for. Home Laundering," and finally one on "How to Prevent andRe­move Mildew."

All of these, of course, are designed to launch the bride to a successful home­making venture.

The Secretary is very thoughtful in enclosing a sample letter that he sug­gests every Member of Congress might send along with this packet to each new bride in his District which reads as fol-lows: ·

DEPARTMENT OF AGRICULTURE, Washington, D.C.

DEAR BRIDE: It is a pleasure to send you this packet and to extend my wishes for your happiness. I hope that . you will find these publications helpful in your new experience of shopping for two.

This is one of the special services we are providing in this Centennial Year of the Department of Agriculture.

I understand that brides want more in­formation on how to 'buy food and furnish­ings for the home. You will find many suggestions in this packet to guide you.

Some of the enclosed publications tell you of grading and inspection services the Department of Agriculture performs to help make sure that our food supply is wholesome and of dependabl~ quality. Other bulletins give you tips on buying and caring for food and furnishings in your home. . The enclosed list of popular publications include many more that are available to homemakers. And there are some that may be. of interest to your husqand. I want you both to feel free to request publications that· you may need.

My very best wishes to you and your hus-band. ·

Sincerely yours, ORVILLE L. FREEMAN,

· Secretary.

In all fairness, Mr. Speaker, there are a number of charges made against the Department of Agriculture for benefits to the consumer rather than the 'farmer; and this is just another example. It is, however, getting to be rather ridiculous to have the Department of Agricultur.e talking economy on the one hand but

going to such lengths ·on the other hand to curry the favor of the urban centers and their Representatives in the Con­gress for support of the Department•s programs with, of all things, a "Packet for the Bride:~

COMMITTEE ON PUBLIC WORKS The SPEAKER. Unde!" previous order

of the House, the gentleman from Iowa £Mr. SCHWENGELJ is recognized for 60 tninutes.

Mr. SCHWENGEL. Mr. Speaker, I take the :floor today to talk about what seems to be a very serious problem in public works. In the committee are many projects that should be acted on during this session of the Congress.

There is a rumor that the public works omnibus bill is being held up until Con­gress acts favorably on the so-called standby public works bill, H.R. 10113. ·There is much evidence that there is truth in this rumor, for we have not yet held any hearings on· what promises to be the largest and possibly the most im­portant public works authorization bill that this Congress haS: ever considered.

And here it is August 23 ·and no hear­ings have been held on this bill yet. This should be conclusive proof that someone is a party to playing a strange kind of power politics the likes of which has seldom, if ever, been seen in the Con­gress of the United States.

Mr. Speaker, before I go further, I want to say that I have been a member of the Public Works Committee now for 8 years. It has been a great experience because here I have found, on both sides of the aisle, a great sense of dedication to the public welfare ahd, ·while at times there may have been situations that you could have pointed to and said here is a pork­barrel proposition, by and large all of us who serve on the committee know that all of the projects that come before our committee get a pretty thorough study and are seriously considered by every member of the committee before they cast their vote on the proposition when it is before the committee.

This committee has been of great pub­lic service in many ways through the years. Since my time we have authored and brought to the House :floor hundreds of projects that were i_n the public in­terest, that serve to improve, America in many ways, that helped strengthen the economy of the country. Just now we, as the result of wise action by the Con­gress, are in the middle of building the · greatest h_ighway system ever envisioned. by any government-Interstate Highway System. While we have discovered that this legislation in some respects is inade­quate and that individuals in govern­ment and out have taken unfair advan­tage in some instances, the program ·is moving-it is going forward. There is more evidence now than ever bef<>re that the Interstate Highway System is _going to be of far greater value to the eco­nomic health and welfare of this coun­try than even the most enthusiastic

. booster of the Interstate System at its

. inception imagined was possible. All of us should be very grateful for this.

There are many other small and large projects brought out by the Public Works Committee that deal with flood con­trol; watersheds, rivers and harbors proj­ects, and ·emergency .situations that have brought both relief and economic stimulus to communities, to States, and the Nation.

I believe it can be said that nowhere in the world can be found a group of elected representatives who have in the past responded more effectively and used more good judgment and commonsense than the Public Works Committee has with the consideration and the passing of legislation to the floor that has finally passed both Houses and become the law of the land.

Therefore, many of us on the minority side. are disturbed about the very appar­ent power maneuver that fs evident now. I am sure that there are many on th1e maJority side who also are disturbed about this.

It is for this reason I take the :floor today to discuss the so-called standby public works bill .

· Let me point out that this bill is in­adequate, it ls unsound, · and it will make Government policy in many respects in­consistent with present law and practice and, worst of all, I believe it is a politi­cally inspired document and could very . well end up in the creation of the largest political "slush fund" with the taxpayers' money that the Congress has ever passed.

STATEMENT BY REPRESENTATIVE IIAL'LECK During the past weeks we have repeatedly

called attention to the Federal Government's share in the blame for this Nation's current economic slump. There is no better ex­ample of wrong economic thinking than the renewed efforts of the Kennedy administra­tion to get. the House of Representatives to pass a so-called public works blll whic.h .is nothing more than a $900 million political slush fund for the President.

Not only does this legislation have numer­ous basfc :flaws, but it 1s typical of the Ken­nedy proposals which shake public confidence in the economic policies being pursued by the White House.

First, this bill authorizes $900 m111ion in public works when there 1s already $2.6 billion in unspent money from specific ap­propriations which would produce far more Jobs than this . public works bill.

Second, this bill would set up a. whole new Government bureaucracy under a pub­lic works czar that would take away from the Congress .the decisionmaking on projects.

Third, this bill would confer upon the President. unprecedented powers to spend money in such amounts as he might deter­mine for projects-whether Federal, State, or ·tocal-of his own choosing in areas se­lected by him.

Finally, every cent of the $900 million proposed in th.ts bill is unbudgeted and could ·lead only to more red-ink. spending and fur­ther increases in the national debt.

It is a well established fact that public works projects have the .most doubtfUl value of all Government devices tO relieve an eco­nomic recession because they take too long to get started and produce relatively the fewest jobs for the unemployed.

This bill, reduced to its essentials, is noth­. ing more than a .$900. million political blank check for President Kennedy that will neither stimulate the economy nor create

.·any significant number of jobs, It should · be rejected.

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17334 CONGRESSIONAL RECORD- HOUSE August" 23 MINORITY VIEWS ON H.R. 10113

We are opposed to the enactment o:f H.R. 10113 for the following reasons:

1. The bill will not accomplish its stated purpose to provide immediate work for a substantial number of unemployed and un­deremployed persons.

2. The Congress should not authorize the appropriation of additional funds to cpn­struct public works for the purpose of cre­ating jobs when unobligated balances of existing appropriations, in the billions of dollars, are available for other programs which produce employment and which are not being used by the administration.

3. A new Federal agency, called the Office of Public Works Coordination and Accelera­tion, would be created, which agency would serve no useful purpose that could not ·be better performed by existing agencies, and which may seriously encroach upon and even supersede the authority of existing Federal departments and agencies, including, among others, the Departments of Defense, Agricul­ture, Commerce, Interior, and Health, Educa­tion, and Welfare, the Housing and Home Finance Agency, and General Services Ad­ministration, and which may emasculate the Congress in its traditional role of determin­ing what public works programs and proj­ects shall be undertaken by the Federal Gov­ernment and the policies relative thereto.

4. Expenditure of the $900 million au­thorized to be appropriated by the bill will necessitate deficit financing :--.nd will contrib­ute to the necessity for increasing the public debt ceiling.

5. The Federal share of the cost of public works projects of State and local govern­ments, to be paid from funds authorized to be appropriated by the bill, would increase to 50 percent when the Congress has determined under existing law that the Federal contri­bution is to be less than 50 percent.

6. Public works projects of municipalities, counties, and any other political subdivi­sions and instrumentalities of States which, under existing law, are eligible for interest­bearing _loans from the Community Fa­cilities Administration will, under H.R. 10113, be eligible for Federal grants, from funds authorized to be appropriated by the bill, for 50 percent of the cost of such proj­ects, even though the Congress may never have authorized Federal grants-in-aid for projects of the types undertaken. Also, other public works which under existing law are eligible only for Federal loans or for grants for planning or studies may be eligible under this bill for Federal grants for con­struction.

7. This bill would delegate to the President the power and authority of the Congress to authorize new Federal grant-in-aid programs

and projects, and, through this new all-in­clusive civil and military Federal and local public works blanket authorization, to select the Federal and federally assisted programs and projects to be constructed, and to deter­mine the amounts of money to be appro­priated therefor.

Mr. Speaker, so that the Members of the House and the public may be made more aware of the importance of the public works authorization bill, and so each Member of the House who has a direct and indirect interest in the bill may know something about it, I · am herewith filing what I believe to be, with few exceptions, a complete list of the projects that have been sent to our com­mittee for our approval and on which no action has been taken to date.

It should be pointed out also that even if we start hearings now it will be prac­tically impossible to get all of these projects in the omnibus bill because we have requests for hearings by people who have different ideas, who disagree with the recommendations, and who would like to have some of the projects amended in certain respects before they are passed on by the committee.

Corps of Engineers survey reports which would be available for consideration in an omnibus rivers and harbors a_nd flood control bill

REPORT PLAN OF IMPROVEMENT Alabama-- -------------------------------- -- --------------------Alaska: Bradley Lake power project, Cook Inlet_ _________ ______ Power dam. -Arizona:

Gila River-Camelsback Dam site ____________ _____________ ___ Flood control reservoir. Gila River

1 Painted Rock ___________________________________ Levee and channel.

Pinal CreeK __________________________ ------- _____ -·-------___ Channel improvement. Arkansas:

White River, Village Creek _________________________________ Channel straightening and clearing. Crooked Creek at and in vicinity of Harrison _______________ Reservoir, levees, and flood walls. Village Creek-White River-Mayberry _______________________ Pumping station.

California: Oakland Harbor, Fruitvale Ave. Bridge _____________________ Federal participation in reconstruction of highway bridge. Oakland Harbor_ ___________________________________________ Channel deepening and widening. Dana Point-------------------------- ----------------------- Dredging and breakwater. Noyo River and Harbor __________________________ ,_ __________ Breakwater construction. Santa Barbara Harbor ______________________________________ Harbor improvements. Ventura-Pierpont area ______________________________________ Groins-sand placement. Orange County, app. V---------------.---------------------- Beach erosion protection, Surfside to Newport Beach, Buchanan Reservoir ________________________________________ Multiple-purpose reservoir and channel. Hidden Reservoir.------- ----------------------------------- Multiple-purpose reservoir--:-ehannel improvement. New Melones Reservoir------------ ------------------------- Modification of authorized reservoir project; power. Redwood Creek·------.-------------------------------------- Channel improvements. Truckee River, Calif. and Nebr _____________________________ Flood control reservoir. Alameda Creek_----------.--- ------------------------------- Channel improvement and levee; multiple-purpose reservoir. Cort~ Maqera Creek, Mann CountY------------------------ Channel improvements and levees. . Russian River ____ ~----------------------------------------- Warm Springs multiple-purpose reservoir. Mormon Slough·------------------------------------------- - Channel deepening and widening. San Francisquito Creek.------------------------------------ Multiple-purpose reservoir. · Colorado _______________________________________________________ _

Connecticut: Mystic, Groton, and Stonington.--------------------------- Barrier dams. Naugatuck-Ansonia-DerbY---------------------------------- Levee and floodwall. New London------------------------------------------------ Barrier dams and wt~lls. Westport_ ______ ------- ------ ---- ---------------------------- Earth dike.

Delaware. ____ --------------------------------------------------Florida:

Key West Harbor·-------- ---------------------------------- Channel deepening and widening. Canaveral Harbor.------------------------------------------ Improvements for navigation. Pensacola Harbor---------- --------------------------------- Do. Port Sutton and Ybor Channel, Tampa Harbor------------- Maintenance of Port Sutton ChaD?el and Basin; d~pening of Ybor Charinel. Palm Beach CountY------------------- ------------------ --- Beach erosion control works: Martm County to Jupiter inlet; Jupiter Inlet to Lake Worth Inlet· South Lake

Worth Inlet to Boca Raton Inlet. ' Virginia and Biscayne Keys __________ ________________ .: ______ Groins and periodic nourishment.

~~~fir ~:~a"i-ea~~========================================== Pr~~_Y drainage system. Four River Basins.--------------- -------------------------- Flood and drainage improvements. West Palm Beach CanaL----------------------------------- Enlargement of downstream 17 miles reach of West Palm Beach Canal and water control structure H~ndry CountY--------------------------------------------- Primary works for flood control and major drainage. • Shmgle Creek, C. &. S., Florida ______________________________ Primary drainage system.

Geo~~~h Dade County------- --------------------------------- Do.

Savannah Harbor·------------------------------------------ Turning basin. Chattahoochee River at West Point _________________________ West Point Reservoir. Flint River·------------------------------------------------ Sprwrell Bluff-Lt~zer Creek and Lower Auchumpkee Reservoirs. S11.yannah River-;-Trotters Shoals--------------------------- Trotters Shoals Reservoir-power, recreation, and fish and wildlife.

fct~b~~I: Kaunakakai Harbor-------- --------------------------- Deep and light draft ~arbors.

Blackfoot Dam·-------------------------------------------- Modification of Blackfoot Dam. B~ns Creek ________________________________________ -_ ____ __ _ Construction of Burns Creek Reservoir by Bureau of Reclamation.

mm!ii::ie Dam and Reservoir·--------- ------ ------------------- Construction by corps and operation by Bureau of Reclamation. &~ic~go Harbor _____________________________________________ Channel deepening and widening,

mo1s Waterway, Til. and Ind·----------------------------- Duplicate locks. Kaskaskia River·------------------------------------------- Blackwater navigation system. C~l~et ~arbor an9- River, Til. and Ind •• ~----------------- Improvements for navigation. lllm01s River and tnbutaries .• ------------------------------ 16local protection projects, 1 multiple-purpose reservoir, and channel improvement Columbia Drainage and Levee District No. 3---------------- Drainage improvements. - • Harrisonville and Ivy Landing ______________________________ Pumping plants. Pecatonica River, Ill. and Wis------------------------------ Levees, walls, etc.

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1962 '., CONGRESSIONAL RECORD- HOUSE 17335 Corps of -Engineers survey reports which would be available for consideration in an omnibus rivers and harbors and flood control bill-Con.

REPORT PLAN OF IMPROVEMENT Illinois-Continued

Rend Lake Reservoir--------------------------------------- Reservoir for flood control and other purposes. Wabash River at Mount CarmeL-------------------------- Levee and wall. . Mississippi River, urban areas from Hampton, ill., to mile Levees an~ floo~walls a~ R!JCk Is.land, _ill., Hannibal, Mo., Gregory Drainage District, Missouri Union

300. · TownshiP Dramage Distnct, M1ssour1. ' . Prairie DuPont Levee and Sanitary District_ _______________ Pumping stations. Richland Creek_-------------------------------------------- Flood control. channel. Rock River at Rockford._------ ---------------------------- Channel improvements for flood control.

Indiana: Burns Waterway Harbor- -------- --------------------- Deep dr~ft harbor. · Iowa:

Indian Creek.--.--------- - ------ ------- --------------------- Flood control reservoir. Mississippi River, Guttenberg. ~ - -- -- -- ---------- - ---------- Levees and pumping plant. Mississippi River upper urban areas from Hampton, ill., to Local protection at Dubuque, Iowa.

Cassville, Wis. Big Sioux River, Iowa and S. Dak_ ------- ---- -------------- Channel improvements for flood control.

Kansas: Arkansas River, Dodge CitY-------------------------------- Levees, floodwalls, and channel improvements. _ Kansas River Basin·-------- - ------ ~ - - ----"----------------- Flood con~rol reservoir~ and water supi?ly: Woodbine Reservoir, Onaga Reservoir, Grove Reservoir, Clinton

Reservorr, Kansas C1ty local protectwn. Cow Creek ____ ~---------- - ---------------------------------- -Channel improvements. Big Hill Creek·--------------------------.------------------- Flood control and water supply reservoir; flood control channel.

Kentucky: Big South Fork, Cumberla.nd River _________________________ Devils Jumps multiple-purpose dam. ~.entucky River------------------------------------------ -- Flood control reservoirs: Red River Reservoir, Carr Fork Reservoir, Eagle Creek Reservoir.

Loms1ana: Mississippi River, Baton Rouge to Gulf of Mexico __________ 40•by 500-foot channel. Gulf Intracoastal Waterway, Texas section ____________ ______ Channel improvements. Bayous Terrebonne, Pet~t Caillo~, etc ________ __ ____________ Maintenan~e of .Houm~ navigation ~hannellO-by 45-foot chaU?el in Bayou Le Carpe. Natchitoches and Red River Parishes _______ __ ___________ ___ Levee and mter10r dramage: Campti-Clarence area, Bayou Nicholas Basin and Coushatta area Mississippi River Delta at and below New Orleans _________ Raise existing back levees. ·

Maine: Carvers Harbor- - ------------------------------------------- Deepening and widening. Kennebunk River·------------------------------------- ----- Channel improvement, anchorage and jetty extension. Portland Harbor-------------------------------------------- Channel and anchorage deepening and widenfug. Searsport Harbor-------------------------------------- ______ Access channel. · · Narraguagus Harbor---------------------------------------- Deepening, widening, and anchorages. Maryland: Potomac River, North Branch ___________ ___________ North Branch Reservoir.

Massachusetts: Chelsea Harbor_-------------------------------------------- Channel deepening and widening. Gloucester Harbor ____ -------------------------------------- Do. Dorchester Bay and Neponset River________________________ Do. Marlflehead Harbor·----------------------------------- ----- Breakwater. Plymouth Harbor ___________________________ ;-;; ______________ Breakwater and 30chorage area. New Bedford------------------------------------------------ Construction of groins. Wareham and Marion·------- - ----------------- ~ ----------- Barriers and dikes.

Michigan: Caseville Harbor·---------- --------------------------------- Channel deepening and widening and breakwater. Gladstone Harbor and Kipling __ _________ ___________________ Channel deepening and widening. Leland Harbor .. -------------------------------------------- Channel improvements: Muskegon Harbor· ----------------------------------------- Channel deepening and widening. New Buffalo Harbor------- -------- ------ -------- ----------- Breakwaters and channel deepening. Ontonagon Harbor·------------------------- ----------- ----- Channel deepening and widening and breakwater modification.

:~g~~:itr~er================= ============================= ~i~~f=-;~hf:~n:8 ~~ing. River Rouge·---------------------------------- ------------- Channel straightening and enlargement.

Minnesota: Mississippi .River between Missouri River and Minne- 14 small boat harbors, maintenance ofl harbor.

apolis, Minn., Minnesota, Wisconsin, Iowa, illinois, and Missouri. .

Warroad River and Bull Dog Creek ________ _________________ Channel improvement. Big Stone Lake-Whetstone River ___________________________ Dam and reservoir-channel improvements.

Mississippi:

·-

Chunky Creek, Chickasaway and Pascagoula Rivers _______ Okatibbee Reservoir. Mississippi River and tributaries, comprehensive ___________ Modi~cation of Mississippi River and tribu_taries project.

Missouri: ' Sandy Slough.---------------------------------------------- Restoration of channel depths. Mississippi River, Clarksville .•• ---------------------------- Silt removal. Kaysinger Bluff Reservoir". __ ------------------------------- Modification of existing project to include hydroelectric power. Mississippi River, St. Genevieve and St. Marys ____________ Raise levees, Kaskaskia Island drainage district. Salt River·------------------------------------------- -'------ Multiple-purpose Joanna Reservoir.

Montana--------------------------------------------------------Nebraska: Papillion Creek·------------------------------------- Channel improvements for flood control. Nevada. __________________________ -------- _____________ ------ __ _ New Hampshire: -

Portsmouth Harbor, N.H. and Maine ______________________ Channel deepening and widening and extension. Shore of New Hampshire----------------------------------- Beach erosion control works: Hampton Beach, North Hampton Beach, Wallis Sands Beach.

New Jersey: Raritan River __ _____________ ·---------------~---------------- Maintenance of 15-foot channel. Raritan Bay and Sandy Hook Bay------------------------- Hurricane-flood contro}t. beach erosion control: Madison Township, Matawan Township, Union Beach, ·

Keansburg, and East Keansburg. New Mexico:

Alamogordo __ ____ ------_------- __ _______ -------_-------_____ Local protection project. . . Rio Grande at Las Cruces-. ____ ________________ : ____________ Las Cruces and Campus detention reservoirs and outlet channels.

New York: Buffalo Harbor __ ------------------------------------------- Channel deepening. and widening. Buttermilk ChanneL __ ------------------------ ------------- Channel widening. GrE\at Sodus Bay Harbor·----------------------------------- Channel and basin deepening and widening. Little Neck Bay __ ------------------------------------------ Recreational harbor. Oswego Harbor·-------------------------------------------- Channel deepening and widening. Flushing Bay and Creek------------------------------------ Commerical and recreational boating improvements. Allegheny River at Salamanca.--------------- - ------------- Levees and floodwalls. Rondout" Creek and Wallkill River, N.Y. and N.J. _________ Local protection p;rojects: Ellenville, North Gully at Ellenville, Rosendale •.

North Carolina: Rollinson ChanneL.---------------------------------------- Channel deepening and widening.

::i~~~~~~~P~ticBeacii_-~===~=========== ====·========== ~;~~;;~~~~otection, and periodic nourishment at Fort Macon State Park: Carolina Beach. __ _____ _________ _______ :_ ____________________ Construction of dune. Wrightsville B~ach.-- - ----------------~ ---------- ~ --- ~----- Constru_ction ofsl'J,nd dune. Cape Fear River. --- -- -------- ---------- --------------- ----- New E:ope Dam~fiood contr-ol, water supply, and recreation.

North Dakota: Grand River, N. Dak. and S. Dak ________ ___ ___ Bowman-Haley Reservoir.

Ohi~onneaut Harbor- -- -------------------------- ~------------- Deepening ch~els and basin and breakwater; small boat harbor. Huron River .. --- ----- ----------------------------"--------- Channel deepending and widening. Cleveland Harbor_------- -- --- ----------------------------- 27-foot channel, 25-foot channel.

8~1~ ~~~~= ~~ ~:~: ~~f!:~!~!!~el~ii:Ei.-::::::::::::::::::: ¥~~~= =ds~~Pf~~ent. Crab Creek--- - ----------------------------------- ~ --------- Channel improv~ments for flood control. Kokosing River------- -------------------------------- ------ North Branch Res~rvoir and Channel.

1

fci~;fi!~~~~-~:==~=·====~::::::::::::::::::::::::::=~===== ~=:<tl~~~~E?;~dtection.

_: ..

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17336 CONGRESSIONAL_ RECORD- HOUSE August ·23 Corps of Engineers survey reports which ·would be available for consideration in an omnibus rivers anil harbors and flood controJ

· bil~Continued REPORT ,. PLAN OF IMPROVEMENT

Oklahoma: , . Arkansas-Red River B8Sin-Water quality report ___________ Experimental projects.. i d h Kaw Reservoir------- -------------------------------------- - - Reservoir for fioo contro an ot er purposes. Broken Bow Reservoir----- --------------------------------- Addition of hydropower at Broken Bow Reservoir. Hugo Reservoir, Kiamich River------ --------- ------------- Modification of Hugo Reservoir, addition of: Clayton Reservoir, Tuskaho~a River. Verdigris River---------------------------------- ----------- Copan Reservoir, Sand Reservoir, Skiatook Reservoir, Birch Reservoir, Candy Reservoir.

Ore~~l~bia and Lower Willamette Rivers __ __________________ Channel deepening and widening. Columbia River comprehensive, Oregon, Washingt_on, and .

Idaho- ----------------------- ----------------------------- Multiple-purpose development. Rouge River------------------------------------------------- Multiple-purpose reservoirs: Lost Creek Reservoir, Elk Creek Reservoir, ApplegateReservoir.

Pennsylvania: Erie Harbor_--------------------------------------------____ Deepening channels. Delaware River, Pa., N.J., Del., and Md ___________________ Multiple-purpose reservoirs. French Creek---------------------------~------------------- 3 flood control reservoirs. Juniata River---------------------------- ------------------- Raystown Reservoir. Lackawanna River----------------- --- ------- ------- ---- ~--- Fall Brook Reservoir, Aulesworth Reservoir, Scranton local protection.

Rhode Island: · . Pawtuxet Cove--------------------------------------------- Small boat harbor. Narragansett Pier---------------~ ~ --- ---------------- ------- Hurricane-beach erosion and navigation projects Point Judith------------------------------------------------ Hurrican~beach erosion and navigation.

South Carolina: Cooper River __ -------------------------------- Dam with spillway and lock. South Dakota _____ ----------------- __ ------ __ ---- ___________ ___ _ Tennessee-------------------------------------------------------~~ -

Gulf Intracoastal Waterway-Channelto Victoria _____ _____ Federal Government construct railroad bridge and maintain turning basin. Trinity River-Wallisville_--------------------------------- Multiple-purpose project. . Gulf Intracoastal Waterway-Channel to Palacios __________ Channel deepening and widening and turning basins. Sabine-Neches Waterway----------------------------------- Deepening and widening. Clear Fork of the Brazos River at Abilene ___________________ Channel improvement at various localities. Freeport and vicinity_-------------------------------------- Levee construction. Trinity River, Fort Worth, pt. IL----------------------- ~-- Channel improvement and floodway extension. Vince and Little Vince Bayous ____________ ___ _________ _. _____ Channel improvements for flood control. -East Fork of Trinity River----~------ ----------------------- East Fork, Trinity River channel and levees.

· Enlargement of Lavon Reservoir Port Arthur and vicinitY----------------------------------- Levees and floodwalls. Taylors Bayou---------------------------------------------- Channel improvement. Lake Kemp, Wichita River--------------------------------- Reconstruction of Lake Kemp. Navasota River--------------------------------------------- Millican Reservoir. Sanders, Big Pine, and Collier Creeks __________ _, ____________ Pat Mayse Reservoir, Big Pine Reservo!z' San Gabriel River------------------- ------------------------ Modification of Brazos River comprehensive plan: Enlargement of Laneport Reservo}r, addition of North

Utah _________________________ -:_ ____ .:_: __________________________ _ Fork and South Fork Reservoirs. Vermont _________________________________ ------ ________ ~---- ___ _ Virginia: - .

James River_------------------~---------------------------- Channel improvements. Lynnhaven Inlet Bay--------------------------------------- Small-boat harbor. Virginia Beach---------------7 ------------- ----------------- Federal contribution toward periodic beach nourishment. Norfolk_-------------------- -------------------------------- Flood wall.

Washington: Columbia and Lower Willamette Reservoir below Van- Channel deepening and widening.

couver, Wash. and Oreg. Puget Sound-Kingston Harbor---------- ----- ---~---------- - Small-boat harbor. Swinomish ChanneL--------------------------------------- Elimination of navigation hazards. Tacoma Harbor--------------------------------------------- Waterway extension, widening, and deepening. Wynoochee River--- -- -------------------------------------- Multiple-purpose reservoir.

West Virginia: Buckhannon River------------------~----------------------- Channel rectification. Guyandot River-------------------------------------------- Justice Reservoir. Twelvepole Creek------------------------------------------- Beach Fork Reservoir.

Wisconsin: · Green Bay Harbor _________________________ .., ________________ Channel deepening and widening. Kenosha Harbor-------------------------------------------- Do. Manitowoc Harbor------------------------------------------ Do. Milwaukee Harbor------------------------------------------ Channel and basin deepening and widening. Ki<?kapoo River--------------------------------------------.- Levees at: Lafarge Reservoir, Soldiers Grove, Gays Mills.

Wyommg---------------------------------------'----------------Puerto Rico: San Juan------------------------------------------ Protection of shores at Condado and Ocean Park.

Mr. Speaker, I believe it is imperative that the chairman of the Public Works Subcommittee call the subcommittee in­to session and start hearing the testi­mony on these projects so we can have some final -action and bring this very much-needed legislation to the House floor for your consider~tion.

In my opinion, we should quit playing politics with this matter and resort to the orderly process and procedure that has been characteristic of the Public Works Committee through the years.

Mr. Speaker, I find it hard to believe that this bill can be very effective in getting the country going again.

We have seen the distressed area bill passed which has not fulfilled the glow­ing promises of the sponsors. We have seen this administration lag on approved projects and I can personally testify to one in my district, that is not included in the cost estimate that I gave earlier, which should have been moving a long time ago. It is the post office at Daven­port, Iowa, that will be built under the Government lease program using private capital that has been adopted by the

previous administration and that has committed themselves to this project, been accepted and approved by this ad- has not yet set this project moving. ministration. So, Mr. Speaker, if they cannot get

The Post Office Department has moving on worthwhile and needed proj­abundant evidence in their files fur- ects like this, how in the world can we

· -nished by myself, the Chamber of Com- expect any great improvement with merce of Davenport, by the newspapers adoption of this so-called standby bill or of Davenport, by the labor people, and acceleration bill which, as I indicated by public-spirited citizens which indi- earlier, would only complicate and make cate the great need _for a post office the procedures more difficult and violate there. its established practices and be in con-

The record shows that the proposition fiict with certain laws already on the for a new post omce was first called to books. the attention of the Post Office Depart- Mr. Speaker, I say if this administra­ment in 1955. And, while there was tion really ·wants to get the country some difficulty in agreeing on a site we moving again they can, by Executive knew several years ago that it would be·· order, by determination and by concen­one 'of two sites, and I was assured at tration on the job, get moving on proj.: least 3 years ago .that the settlement of ects like this and move forward in the the site question need not postpone· the areas that are involved with the $2,600,­consideration of the design and- plans 000 worth of projects that have been for the ppst office. approved and to which I have referred

So, it was my understanding that they earlier. were to -go ahead and that m fact there Mr. BALDWIN. Mr. Speaker, will the are plans and designs in the files for the gentlem-an yield? post office there and, yet, this admin- Mr. S.CirWENGEL. I yield to the istration, . eyen though they publicly ·gentleman from California.

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1962 CONGRESSIONAL RECORD- HOUSE 17337 Mr. BALDWIN. I would like to com­

mend the gentleman from Iowa for the statement which he has made. I would like to further commend the gentleman for the very dedicated service he has rendered on the House Public Works Committee during the-past 8 years. I have had the privilege of serving with the gentleman from Iowa on the com­mittee during that period of time.

I am sure I speak for all members of the committee when I say there has been no more dedicated and conscientious servant of his constituents and of the other people of the country in the work of the committee than the gentleman from Iowa.

Mr. SCHWENGEL. I thank the gentleman. In response, may I say it has been a pleasure to serve with him and all other members of the committee. I am sure when this bill of which· I spoke comes before the House next Tuesday, the gentleman who just addressed these remarks to me will be in the well here talking from a wealth of experience, I am sure, on this subject, that will dem­onstrate again that this legislation is not needed and the public welfare will not be served by its passage.

HEALTH CARE FOR THE AGED The SPEAKER pro tempore (Mr.

LIBONATI) . Under previous order of the House, the gentleman from Hawaii [Mr. INoUYE] is recognized for 60 minutes.

Mr. INOUYE. Mr. Speaker, may I declare at · the outset, very forcefully and without equivocation, that I do not favor socialized medicine. As some of my col­leagues know, I once had a great ambi­tion to become a member of the honored medical profession but due to certain circumstances of the war, this cherished career was nipped at its bud. However, you may be assured that there is, and there will always be, a very soft spot in my heart for the medical profession.

As a legislator, I have always main­tained an open mind on ·all legislative · matters, but I am certain you will agree with me, Mr. Speaker, that the time must come when a legislator must take a posi­tion for or against any legislative mat­ter. My legislative reputation is not one of hedging. I have always felt that after listening to the pros and cons of any legislation and digesting the evidence in­volved, I should have the political cour­age to take a position, even if such posi­tion may result in the loss of precious votes at the ballot box;

In the case of the King-Anderson­Javits bill, commonly referred to as the medicare or health care bill, may I say that I would have voted for this measure, had I been given the opportunity to do so. My reasons for taking this position are manifold. · First, and according te studies made by the American Hospital Association and the U.S. National Health Survey, it' is definitely shown that older people re­quire more hospital care than yoJ,lnger people. Persons over 65 years of age, for example, use nearly three times as much hospital care as persons under 65 years of· age. The annual rate per 1,000 per­sons indicates that the aged spend 2-,332

·days in the hospital as compared to 883 days for those under 65. And hospital­ization is more frequent. According to competent studies, 9 out of 10 persons past age 65 are hospitalized at least once, while 2 out of 3 are hospitalized 2 or more times. And, furthermore, hospi­talization for the aged lasts longer. The average hospitalized person over .65 stays in the hospital twice as long-14.9 days­as compared to the average younger per­son-7.6 days.

Second, studies made by the U.S. De­partment of Health, Education, and Welfare show that older people have higher hospital and medical costs than younger people. For example, the aver­age yearly private spending for hospital and medical care for the aged is nearly twice as much as other people. Half of the aged couples, where one or the other is hospitalized, spend over $800 per year for medical and hospital care; and, further, among the unmarried or single aged who are hospitalized half have had medical or hospital bills of over $600 in1~~ .

Third, the U.S. Census and the U.S. Department of Health, Education, and Welfare reports indicate, too, that the aged are less able to pay for medical and hospital care due to several reasons, but primarily to the fact that older people have less income. These studies indicate that two-person families with the head of the household 65 years or older, have a median income of $2,530 per year which is less than half of a younger two-person family whose median income is $5,314 per year.

It should be noted also that aged per­sons living alone have a median an­nual income of $1,050 as compared to $2,570 for persons under 65 years of age living alone. Second, these studies clearly indicate that older people have fewer assets. Four out of 10 families with the head of the -family 65 years of age or older have either no assets readily convertible to cash or less- than $200 in such assets. Third, these studies show that the aged have less insurance protection. Only about half of the aged have some minimal hospital insur­ance as compared to over 70 percent of younger people. The insurance the aged have is usually expensive, limited and restrictive, and frequently can be canceled at the option of the insur­ance company, or such policy excludes preexisting conditions. Fourth, for those groups among the aged who need the most protection, the proportion with insurance coverage is even lower . . Less than 33 percent, for example, of the ag-ed families with annual income less than $2,000 have any sort of hospital insurance while only 30 percent of the aged with chronic disabilities have hos- . pi tal insurance. And, finally, a study of social security beneficiaries disclosed that of all those aged persons who in­curred medical and hospital costs during the year, only 14 percent of the aged couples and 9 percent of the single aged persons had any of their expenses cov­ered by insurance.

Fourth. -According to the -recent cen­sus, there are approximately 17,800,000 '

persons in the United States who are 65 years of age or older. And studies indi­cate that because of great advancements in the science of geriatrics, this number will continue to increase as years go by. The King-Anderson-Javits bill will pro­vide health and hospital insurance for nearly all of the aged. On the other hand, the present Kerr-Mills medicare program wi~l provide health and hospital protection for only an approximate 1 percent of the aged persons in the State of Hawaii. The national coverage for the aged under the Kerr-Mills program is less than 1 percent.

That, in brief, defines the problem con­fronting the senior citizens of our Nation today and for those of us who, inevitably, will become the senior citizens of tomor­row. It is a problem which we cannot ignore but compels us as a nation to de­vise solutions for its alleviation. It is to this end that the King-Anderson-Javits bill is directed·, and briefly, would pro­vide the following:

First. Hospital service for 90 days for each illness, subject to a deductible amount paid by the patient of $10 a day up to 9 days. The minimum amount deductible will be $20 and the maximum amount $90.

Second. Nursing home service after transfer from hospital up to 180 days which includes part-time nursing care provided by or· under the supervision of a registered nurse or licensed practical nurse; physical, occupational, or speech therapy; medical social services; and supplies such as drugs, biologicals, and appliances.

Third. Outpatient hospital diagnostic services, as may be required, subject to th.e first $20 deductible amount for each diagnostic study.

Fourth. Home health services of up to 240 visits during the calendar year, in­cluding nursing care and therapy. These services are furnished by a· home health agency or by others under arrangements made with it pursuant to a plan estab­lished and periodically reviewed by a physician.

In order to meet various objections raised to provisions and omissions con­tained in the original King-Anderson bill, the King-Anderson-Javits bill has, additionally, included provisions for the payment of health insurance benefits for persons who are not insured under the old-age and survivors insurance or rail­road retirement, thus bringing its bene­fits to those who would otherwise not have been qualified under the original King-Anderson bill; provisions for the use of approved organizations, selected by the providers of services, in the ad­ministration of the program; provisions for an option under which beneficiaries could receive the health benefits through private insurance, group practice, and other voluntary plans instead of the Gov­ernment plan; and several 11ew and ex­plicit provisions to assure that the Fed­eral Government would not interfere in the practice of medicine or the opera­tion of medical institutions.

The King-Anderson-Javits bill does :not make any pretense at providing all

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.,

17338 CONGRESSIONAL RECORD- HOUSE August . 23

except the necessary and essential serv- Javits bill, they reversed their attack designed to meet the above average ices and items for health care and this, and criticized -it for not paying doctors health bills 'of orir senior citizens. It I feel, is only proper. For those re- bills, dental bills, or medicines and drugs will serve as a base arolind which private quiring hospitalization, skilled nursing outside the hospital. supplementary protection- can expand· home care, home health care and out- Although many have argued that the and· there will be no need to go further patient diagnostic care, any item or serv- King-Anderson-Javits program would. than the present proposal. It should ice that would not be included if fur- interfere with the doctor-patient rela- be pointed out also that any extension of nished by a hospital to an inpatient is not tionship, or with the free choice of doc- this program would have to be legislated covered. Excluded from the benefits of tors, I should point out that my study by Congress, and as I indicated earlier, the bill are such things as private ac- - of the bill indicates that there is no in- ~ am absolutely against socialized medi­commodations-unless medically neces..: terference with doctor-patient relations. cine. If I were convinced that the sary; physicians' or surgeons' services Every patient would have free choice of ·American people did not need or want except one where it is customarily a hos- doctor, who may charge any fee desired, the King-Anderson-Javits program, r pital service in the fields of pathology, and hospital or nursing home from would be the first to vote against ' it. radiology, physical medicine-rehabili- which he would receive care. The bill Critics also claim that the proposal tation--or anesthesiology and interns' or specifically provides that the Govern- would lead to Government control and residents' services; private duty nursing ment will not provide care or offer any yet it should be noted that our Govern­care; any item for use at home after dis- service, or suggest any physician or fa- ment has assisted its citizens in meet­charge from the hospital; services that cility. However, the Government will ing their health needs since 1789. As are not generally provided by skilled set up means for paying for an aged you may know, we have many health nursing facilities; diagnostic services not person's hospital care by a small tax prograll)s ranging from veterans' pro­customarily furnished by the hospital to levied through his working years. As grams to hospital assistance programs. its outpatients for the purpose of dlag- you know, under the King-Anderson- The Federal -Government has contribut­nostic study; and in the· case of home Javits program, those covered under so- ed funds to assist in the construction of health care, anything more than part- cia! security would set aside approxi- hospitals and finances 55 percent of our· time care or drugs and biologicals. mately $1 a month toward this program. country's medical research-no one has

On the other hand, the Kerr-Mills pro- It is similar to the payment of insurance refused this aid on the ground of Fed­gram which is now in effect, has many premiums. When and if the need arises era! control, and I am sure ypu will agree limitations which make the program after age 65, the patient will receive the with me that to date no bad.results have· woefully inadequate and ineffective. For services, not as a charity, but as ·a been shown. Many have argued too that example, as of December 1961. only 4 out right-a right because he paid for it the King-Anderson-Javits program will of 1,000 aged in the United States were during his working years. By this result in all the problems and abuses receiving any assistance under the Kerr- means, the patient does not lose any of found in the British system. In read­Mills progrru;n. All but the poorest were his American individuality. He does not. ing the proposal and comparing it to the left out. People who have more than have to subject himself to humiliation ~British national health service system,_ a minimum income get no benefits and and loss of pride by proof of his poverty, I find that there is no comparison be­some States have no benefits at all. At nor does he have to suffer the fear and tween these two programs. In Britain,-­the end of 1961 only 19 States were pay- anxiety of bankruptcy. The King- for example, the Government provides ing Kerr-Mills benefits. Under this pro- Anderson-Javits .bill has been labeled as medical and hospital care to the entire gram, an aged ·person must P.ass a pov- socialized medicine, or at least a. big step population. Under our proposal, the erty test before he can get help and in toward it. According to all evidence, I Government would provide only ba§.ic_ many States, such as Massachusetts, his am inclined to believe that this is not hospital insurance to a limited group spouse and his children must also pass socialized medicine. I believe the ac- with special needs. such a test before help will be extended cepted definition of socialized medicine Many persons opposing the King­to him. Studies have "shown that be- is one where doctors work as employees Anderson-Javits bill have indicated that cause of limited State tax resources and of the Government and the Government private insurance can meet the needs of high cost of good quality service, these owns the medical facilities . . As the pro- the aged. Studies made available to States have been forced to use facilities posal is written, I, for · one, cannot see Members of Congress, however, indicate that endanger health and safety. how it is socialized medicine in any way, that private insurance cannot extend the

As you know, the Kerr-Mills pro- shape or form. basic coverage to most of the aged. On gram is a Federal and State grant pro- Under the King-Anderson-Javits pro- February 6, 1960, Dr. Basil C. MacLean, gram financed by general taxation, and gram, the Government does not provide president of the National Blue Cross As:.· can best be defined as being a charity a single medical service but provides sociation, said: program. The patient himself does not basic hospital insuran~e for the aged, _A litetime's experience has led me at least in any way contribute for the receipt - and these hospital services would be paid to conclude that the costs of care of the of benefits. This is a charity program for in much the same way that Blue aged cannot be met, unaided, by the mecha­paid for by all taxpayers. Under this Cross or HMSA now pays. The bill spe- nism o! insurance prepayment as they exist

h 92 t f th today. The aged simply cannot afford to program, owever, percen o e cifically provides that the Government . buy from any o! these the scope of care tha~ Federal funds are presently being spent would in no way control, regulate or 1s required, nor do the stern competitive in three States-New York, Massachu- interfere with the practice of medicine realities permit any carrier, whether .non.,. setts, and Michigan. In only six States or the administration or operation of profit or commercial, to provide benefits are Kerr-Mills benefits now being paid participating hospitals. Further, the which are adequate at a price which is to 1 percent of the population over 65. bill specifically provides that the Gov- feasible for any but a small proportion of The benefits are not uniform and range ernment will in no way dictate as to the aged. in States from acute or emergency care what fees, if any, the doctor will charge May I add at this point also that con­only to comprehensive care. One State his patients-the doctor may -charge trary to the argument that the proposal limits benefits to only 6 days in the nothing or he may charge as much as would ruin private insurance, I believe hospital. he wants. This is a matter of private that it would instead be benefited. With

Opponents to the enactment of the relationship between the doctor and pa- patient protection assured under the King-Anderson-Javits proposal have tient. It sho\lld be noted, however, that program, aged persons could use what been very consistent with their incon- the Kerr-Mills program provides for the funds they ·have to .supplement their sistencies. For example, when the payment of doctor fees and in this sense medical insurance coverage. , Without Forand bill was introduced in the 86th could be labeled as an inroad to social;.. _the burden of insurance of high cost Congress, they cried that the Federal ized medicine. · insurance programs, Blue Cross or Government was encroaching upon the It has been argued- that the King\" HMSA could hold d·own their rates and sacred privileges existing in the doctor- Anderson-Javits program is an operung sell their insurance to more people sue., patient relationship. When the pay- wedge to a broad Government llealth cessfu,UY,. I ~rmly .believe that private ment of medical fees was excluded from program. First of all, the proposal is .heal~h insurance would therefore .. thrive th~ provisions of the King-Anderson- considered an essentially complete one, with the · enactm~t ef this bill, "just as -

.

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1962 CONGRESSIONAL RECORD- HOUSE 17339 private life insurance was strengthened. with the original Social Security Act 26 years ago. · . .

Let us examine a few more. arguments against the :King-Anderson-Javits bill.

I have received letters indicating that any governmental hospital plan should be limited to the needy. Some, for ex­ample, ask "Why should we help mil­lionnaires?" As I pointed out earlier, the major goal of the King-Anderson­Javits bill is to pay benefits to all persons as a matter of right, rather than force them through the indignity of proving their poverty. I believe that we should do everything to prevent dependency and not deal with it after it has arisen and then only at the price of humiliation and deprivation for the aged person and his family. Then too, millionaires over 65 are in a real sense having the medical costs borne by public funds because medical deductions on tax returns, for them result in a tax reduction equal to mos~as high as 91 percent-of their· medical expenses. We should note also the fact that aged persons with annual incomes of $10,000 or more constitute only 3 percent of the eligibles. Should the 97 percent be sacrificed because the 3 percent would also be receiving bene­fits? Furthermore, I doubt if too many millionaires will be satisfied with re­ceiving the minimal benefits provided for in the measure.

Others argue that the program will cost too much. Under the provisions of the bill, this program will cost each par­ticipant approximately $1 a month, or roughly 3 cents a day. I am certain that for a workingman or working­woman, a contribution of about $1 a month is no sacrifice. However, an illness in old age without this pro­gram could well be a catastrophe. The program does not add any burden on the general revenues because it would pay for itself. It would further cut down on public assistance programs that state and Federal Governments would other­wise have to carry.

And one final criticism which needs to be rebutted, namely, that the program would result in an overutilization of hospital and. nursing home services. I sincerely believe that the King-Ander­son-Javits bill, in anticipation of this problem, has met it with three rather adequate safeguards:

First. The attending doctor must" cer­tify that tpe services are needed before any service will be paid for. Only the attending doctor can decide when a pa­tent should be hospitalized. I, for one, am willing to rely completely _upon the competency and integrity of the attend­ing doctor to determine whether a pa­tient requires hospitalization or not. .

Second. The institution or the hospital itself sets . up a committee to review all admissions. After 30 days continuous service, it . again reviews cases to. deter• mine if further treatment is required.

Third. Because of the types of serv:­ices covered, .such as. ·outpatient, nursing home, and diagnostic services, I · believe that there · would be no financial incen:­tive to use .a higher cost seryice .than is required. .

CVIII--1092

I admit that there will naturally be an increase of aged entering the hos- · pitals if this program is enacted~ Under the provisions· of. the proposal these aged persons will get needed ~eatment which­they have long put off. I do not believe that this is overutilization. In fact, I am certain you will agree that this is proper utilization.

We Americans are a proud people and I know that all of us rightfully feel that we have a responsibility in promoting the welfare of our families and our par­ents. This pride, however, has in much too many instances caused considerable grief and deprivation. We would all like to pay for our parents' hospital bills in the event of their need but to do so would be to deprive our children and our own families from those things which they otherwise would have received. If my parents were to succumb to illnesses of long duration, I know that I will be able to care for them. As a Member of Con­gress, I earn $22,500 per year; I receive a pension as a retired Army omcer; I have no children-but, how ·many can say that they are as fortunate as I am? And would you not like to say that you need not impose upon your children nor plead poverty in order to meet your health needs at age 65?

Let me, in closing, once again reiterate that as long as I am a Member of the Congress of the United States I will stand up and vote against any program that will provide for socialized medi­cine. To me, the doctor-patient rela­tionship, like the lawyer-client relation~ ship, is a sacred one and should be outside the interference scope of any Government agency.

THE FOREIGN MILITARY ASSIST­ANCE PROGRAM

The SPEAKER pro tempore. Under previous order of the House, the gentle­man from .Washington [Mr. PELLY] is recognized for 15 minutes.

Mr. PELLY. Mr. Speaker, I desire to ·discuss foreign aid-especially foreign military assistance. My. purpose is to point up the possibilities of greatly re­·ducing Government expenditures.

A month or two ago, a newspaper article by Eric Sevareid stated that the United States was awakening to the cold facts that foreign aid is largely ineffec­tive. He asserted that responsible Mem­bers of Congress were losing their illu­sions as to what money, food, arms, and so forth could do in and to underdevel­oped nations. He said a growing sus­.picion was becoming a conviction that every President from Truman through Kennedy has wildly ov·ersold the pros­·pective results from America's generous ·intervention.

A year ago, Mr. Speaker., Congress was told that a completed reexamination of :the Mutual Security Act would result in a more effective program. The. results of any changes have been slow and dis­. appointing. But always, many of us in . the Congress . have taken the position that if the United States was going to make a mistake, it shoUld be on the side of greater U.S. strength in the free world

and greater U.S. influence in the cold war. Both in economic and military a1d, if an error is to be made in the foreing assistance program, we preferred that "it should be on the plus and positive side in the winning of the cold war and in the strengthening of the U.S. posture in world affairs.

Mr. Speaker, it has been said that under foreign aid wherever the United States has sought to raise the economic level and standard of living in under­developed lands, almost inevitably the ·result has been that the poor people we seek to help have become poorer, but the rich who need no help have become richer. We hear of such riches being di­verted to secret bank accounts in Switz­erland.

I know members of the House Com­mittee on Foreign Affairs have been con­cerned about such adverse criticism of economic aid. Neither Members of Congress nor any people who have traveled abroad return with any real enthusiasm about our foreign aid pro­gram over the world. The Agency for International Development has even had to resort to an attempt to sell the merit of the program by releasing figures on each State's and community's share in goods and services of foreign aid spent in the United States. This is hardly a proper basis of seeking popular support. Because $11 million was spent in Seat­tle, am I to be persuaded as to the merits of foreign aid?

Because of CUba and Communist Castro, like others I have been espe­cially concerned about the way the pro­gram is working in Latin America, and frankly, somewhat perplexed as to the proper course in finding the solution to the problem.

Earlier this session of Congress, Mr. Speaker, a $4.6 billion foreign aid au­thorization passed without my support. It was the first time, I had voted against foreign assistance legislation. Over the protest of many Members, including my­self, this bill gave to the President the power which he asked to extend aid to Communist countries including Yugo­slavia and Poland. The Senate had voted a ban on such aid, but adminis­tration pressure caused many Senators to recede on this point. I regretted this and it influenced my vote. In vot­.ing against this authorization bill also, ·I had in mind that $6 billion remained authorized and unspent from previous year's foreign assistance legislation. In addition, the bill contained $1 billion of back-door spending authority which I tried unsuccessfully by an amendment to strike out. For these reasons and be­cause of the large annual Federal defi­.cits which the Government continues to incur and in the face of my vote against . the increase in the public debt ceiling, I could not justify the added load of the foreign aid bill to the tax burden.

Now the question naturally arises fol­lowing that authorization bill as to my support or opposition to ·an . appropria-tion. This will be the legislation to pro­vide funds as recommended by the House Committee on Appropriations which 1;8

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=

17340" CONGRESSIONAL RECORD- HOUSE· August 23 I

charged with weighing the need and ur­gency of the aid program as against the condition of the Federal Treasury. Here a factor to be considered · must be the adverse effect of such spending on the U.S. balance-of-payments deficit which is such a chronic and increas­ingly serious threat to our economic sta­bility. As I see it, Mr. Speaker, reduced foreign aid and expenditures abroad are necessary to solve this problem.

Mr. Speaker, in his annual report to the Congress on the mutual security program, President Kennedy said its ob­jectives of international development could be realized only if the strength and will of the free world against ag­gression and subversion is maintained. He called for effective military assist­ance to sustain peaceful development.

On the . other hand, the question has been raised lately in the Senate as to whether U.S. military aid in certain in­stances does far more harm than good.

As I indicated earlier, my remarks to­day especially concern the aspects of our military aid. A large percentage of mu­tual security, of. course, is military as­sistance and in all frankness, in the past my own reservations and evaluations have been less concerned with this clas­sification than with the amount of eco­nomic aid. Military aid in the past has been more or less taken for granted ex-. cept to Communist countries.

During the fiscal year 1961 our mili­tary aid appropriation of $1.8 billion was augmented by funds from prior years so that the total availability was $1.93 bil­lion programed among 56 countries. If all of this in the way of arms and grants for purchase of military hardware was truly effective against the threat of com..: ml.mism no one could complajn. But I am. persuaded a substantial cut in ap­propriations for military assistance is very much in order without harm and indeed perhaps with considerable benefit to the program. Mr point is that Con­gress should study and reappraise this aspect of aid. Once a Government po_licy is established it seems often there is not only no stopping of it, but not everi any curtailing of it.

The other day I read a thought-pro­voking editorial on the subject of the recent military takeover in Peru. When military leaders, the editorial pointed ·out, overthrew that country's constitu­tional President, a U.S. Sherman tank was used to ram down the iron gate of the presidential palace. This tank had been supplied by our U.S. militiary as­sistance program. Moreover, the officer in charge, in fact, most of the top Peru­vians military leaders are U.S. trained. The editoral commented further that similarly leaders are U.S. trained. The editoral commented further that simi­larly with an earlier military coup in Argentina when that nation's constitu­tional President was imprisioned, Amer­ican arms were the force behind the incident.

The question raised in this article was as to whether our aid helps democracy or is used against it.

Certainly the Communist propagandist will say U.S. arms supported interven .. tion of the military in elections.

Mr. ·Speaker, I am told· that training in:tluences. Latin American countries foreign military personnel from certain already have these weapons. I therefore countries in the United States is not ac- suggest that much of our military assist­complishing its purpose . . It is working ance to Latin America is · not ·only un­in reverse. necessary-it is harmful. In the inter:..

The President's report to Congress on est of peace and democracy, as well as the mutual security program on military om: own national solvency,-a reappraisal assistance for Latin America says it is. sllould take place. carefully designed to specific hemisphere . Turning now to the emerging countries defense tasks in accordance with the Rio ,of Africa, they-even less than the Latin treaty. It is described as of new signifi- American countries-need no modern cance with the growing Communist weapons. threat. To arm these new countries with our

Mr. Speaker, I question the capability weapons can well lead to more dictator­of any such hemisphere defense. The ship and local wars. House Committee on Armed Services In the past for example we have sent should call in our military planners and tanks and fignter aircraft to Ethiopia. ascertain the value of it. A fresh look Why, I have not the slightest idea. But is what is needed and less reliance on Somaliland also wants tanks and fighters those State Department bureaucrats because she claims that Ethiopia has whose reports could be self-serving. taken some of her territory and Somali-

Since World War II it has been the land wants to take it back. policy of our Government to select and Mr. Speaker, I can see no need for U.S. bring to the United States for military military assistance to any country in training the most promising youth of Africa. What good except to make other countries receiving our military assist- political leaders jealous, was the naval ance. Here these /foreign young. men vessel we gave to Emperor Haile Selassie. experience a new way of life. They re- for a yacht or the $3 million it cost· us ceive better allowances, eat and live bet- to air condition and outfit it? How much ter than ever before. Here in our of that sort of thing has been going on? schools, under the instruction of our Greece and Turkey have frontiers in military personnel, they learn to use our common with Communist countries. I modern weapons. favor military support for such coun-

Upon their return home they observe tries. However to a large extent Greece an inefficient government which, never- nor Turkey must content themselves with theless, is somewhat pleasantly prosper- arms they can afford, and depend on the ous with U.S. dollars. There comes an NATO alliance for protection against inevitable temptation to take over such Red aggression. · a government, and to correct weakness And speaking of NATO, the indus-by military dictatorship. trialized countries of Western Europe

Military takeovers by foreign leaders have :flourishing economies. More so trained in the United States to use our than ours relatively. Also, they· have weapons have already occurred in South the genius to fashion modern weapons. Korea, Turkey, Cuba, Brazil, Argentina, ·They need no military assistance from Ecuador, and Peru. It may well occur us. elsewhere. However, there are areas and coun-

This takeover of civilian governments tries, Mr. Speaker, which are threatened by force is scarcely the purpose of our by Red aggression and need our help. foreign aid program. To such our military assistance must

Mr. Speaker, the President's fiscal year continue. I refer to South Korea, For-1963 budget calls for $1.5 billion military mosa, southeast Asia and Berlin. Here assistance to foreign countries. For our I would not cut. · own best interest, as well as that of the In summary, I suggest that based ori intended recipients, it is imperative that past military assistance programs to the Congress carefully consider this re- these threatened areas and countries, quested appropriation. $750 million for fiscal 1963 is ample.

In all, we have granted some $462 mil- Mr. Speaker, in my opinion, I repeat, lion in military assistance to Latin Amer- the Congress could ·cut the $1.5 billion ica; for the :fiscal year 1963, $84 million requested for military assistance. Brig. is contemplated. :J: am told that in all Gen. Bonner Fellers, chairman of the Latin America no means for Western Citizens Foreign Aid Committee, says Hemisphere defense exist. The tanks, this can be cut to $750 million and have obsolescent :fighters, and small arms we a better overall program. So when the have sent there can in no way be con- foreign aid appropriation bill comes up sidered defense against the Red bomb- for House consideration on the military er and missile threat against the West- program alone, I am hopeful we can save ern Hemisphere. substantially of the taxpayers money.

If so, what then does our military as- Mr. Speaker, a tax cut in 1963 has sistance program to Latin America ac- been promised to the American people by complish? The answer is it strengthens the President, although of course taxes dictators and would-be dictators. It are solely within the constitutional prov-sometimes forces a population to live un- ince of the Congress. der its own military occupation. Our To justify such needed relief to the military assistance can do even greater . overburdened taxpayers, the upward harm; it tempts armed dictators to at- spiral of Federal spending must be tack neighboring states. halted. Otherwise the result will be more

Mr. Speaker, it seems to me the only inflation and weakening rather than weapons needed in Latin America are strengthening our economy. · small arms to pre-yent local disorder and In this connection, if I may sum up, to disrupt the infiltration of subversive Mr; Speaker, an area or one of the areas

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1962 CONGRESSIONAL RECORD- HOUSE 17341 tO achieve necessary savings is our mili­tary assistance program. With other savings including a cut in economic for­eign aid, a cut in our .Defense expendi­tures as promised by Secretary Mc­Namara, and reductions which can be made in nonessential domestic spending programs, I am sure the cut in taxes could be justified. Thereby a stimulant to the general economy could be accom-plished. ·

Mr. Speaker, to conclude, when the foreign-aid appropriations bill comes to the House for consideration, the oppor­tunity to reduce expenditures must not be overlooked. I urge substantial re­ductions in all parts of the program, but especially I urge that we not make a sacred cow out of the military aid part of the bill. ·

Mr .. LANGEN. Mr. Speaker, will the gentleman yield?

Mr. PELLY. I yield to the gentleman from Minnesota.

Mr. LANGEN. Permit me to take this moment to compliment my colleague from Washington on the very worthy statement he has just made. I think it is indicative of his dedication to the eco­nomic security of this country as well as support of the policy that may gain this country respect throughout the world. I know that during the time · I have served with him this has been his constant endeavor and purpose .. His ef­fecti:veness in helping to bring about. such a program is certainly to be coin-mended. · ·

Mr. PELLY. Of course I appreciate the very kind words of the gentleman. · I just warit to say to him and other Mem­bers of the House, as one who has in the past voted for foreign aid and be­lieved in it, I have become concerned now as to whether or not much of the spend­ing could not be reduced. In this con­nection,. I have suggested various legisla­tion, and am prepared to vote bills up or down iii accordance with therr effect on the economic as well as the military security of our country.

THE FEDERAL AVIATION AGENCY Mr. ALBERT. Mr. Speaker, I ask

unanimous consent that the gentleman from Texas [Mr. GoNZALEz] may extend his remarks at this point in the RECORD and include extraneous matter.

The SPEAKER pro tempore, Is there objection to the request of the gentleman from Oklahoma? · There was no objection.

Mr. GONZALEZ. Mr. Speaker, I notice from the daily press that any number of persons and citizens are airing various grievances they feel they have against the Federal Aviation .Agency and its Ad­ministrator, Mr. Najeeb Halaby. This fact gives me no comfort even though I have endeavored to be . very pointed in my own ~riticism of how this Agency has executed functions given it by the Con­gress. But it is distressing to learn that so many of our citizens feel aggrieved by the actions, or sometimes the lack of actions, of this Agency.

The most distressing element in this picture is that there appears to be no

avenue through which citizens, cities, or groups can appeal from some of the l::larmful actions, attitudes, or even indif­ference the Agency assumes toward their problems.

It is well known that the present Ad­ministrator was one of those who served under President Eisenhower's White House aviation facilities study group, which was charged with developing -a plan for modernizing the Nation's airway facilities. This plan became known as the Curtis report. This is the group that recommended the formation of the Fed­eral Aviation Agency, which was created in August 1958. ·

It should be recalled that Mr. Najeeb Halaby was vice chairman of this group. Today he is Administrator of the Agency he helped call into being.. I have no quarrel with the fact there was a need to reorganize and update our efforts to bring more order, responsibility, and safety . to our airways, and I recognize the real need for the passage of a Fed­eral Aviation Act.

This act and the Agency it creates has been functioning only 4 years. It is ap­parent that we can see many problems now from this 4 years of experience that could not be· fully anticipated in 1958. Although I have charged the present Administrator with a number of delin­quencies, I wish to say in fairness that some of these may stem from deficiencies in the law itself and I argue for the need of our taking a pause and examining how wisely the present law delegates such broad, unilateral powers into the hands of any single administrator.

Few people recognize that we have established a single man in Government who has virtually unlimited powers in the expenditure of a budget that is rap­idly approaching a Qillion dollars a year. One editorial writer has characterized him as a giant standing over the Nation with a bag full of jelly beans. It has be­come important to citizens, to cities, to associations, to unions, ·to Congressmen just how they stand in this man's favor.

He can break a strike by removing a license to fiy of an elected union leader; he can give or not give money for needed construction to a city airport; he can approve or disapprove a particular piece of equipment; he can give or not give a multimillion-dollar contract; he can let an employee fiy or not fiy an FAA air­plane to transport his family without expense; he can dismantle or construct important installations in -an area; in short, he has much in the way of largess or penalties he and he alone can dis­pense.

I recognize that there are times we must delegate broad powers for the sake of emcient administration and decision­making. But I also argue that there should be some more orderly and regular opportunity of checking on this authori­tarian approach to what should be only technical problems. There should be a recourse for all who feel aggrieved at the hands of a governmental adminis­trator-any administrator and any agency. We have elaborate measures for this even in our system of military ·justice. Why can we nQt have it -in the case of a· purely civilian· agency.

This is the· question I raise about· the Federal Aviation Agency. We must rec­ognize that the head of this agency now presides over activities ranging all the way from governing Wake Island and its inhabitants to. opening what amounts to a regional omce in London, England. He can make decisions affect­ing whether your hometown is to grow or to wither, and he does not have to even listen to petitions of protest.

Mr. Speaker, it is time we paused and took a close look at this thing that has been created.

A TRIDUTE TO HON. DANIEL K. INOUYE

Mr. ALBERT. Mr. Speaker I ask upanimous consent that the gentleman from New York [Mr. O'BRIEN] may ex­tend his remarks at this point in the -RECORD and include extraneous matter.

The SPEAKER pro tempore. Is there objection to the request of the gentleman from Oklahoma?

There was no objection. Mr. O'BRIEN of New York. Mr.

Speaker, as the 87th Congress moves into its closing days, Members experi­ence feelings of both anticipation and regret, anticipation of a return home to relatives, friends, and neighbors, and re­gret that many -of our friends in the House will not answer the· first rollcall of the 88th Congress.

Some of those who will leave have been the victims of the fortunes of po­litical life; some are retiring after long years of service and some will seek in November election to different spheres of public trust.

We say farewell to all of them and wish them all the best in the days ahead.

I should like to pay a special tribute at this time to one of those who will leave this Chamber soon because he has been chosen by his party as a candi­date for the U.S. Senate. I refer to the Honorable DANIEL K. INOUYE, of Hawaii.

My motives are twofold. First, be­cause I have found in the first Member of the House from Hawaii a warm and delightful friend.

My second reason, I hope, will be understandable to my colleagues. Only a few years ago, it was iny rare privilege to serve here as fioor manager of the bills which made Alaska and Hawaii the 49th and 50th States of the United States.

Tuesday last was the third anniversary of the admission of Hawaii. Today is the third anniversary of one of the most dramatic and moving scenes ever to oc­cur in this House.

On that day, a young man, just elected to Congress from the brandnew State, walked into the well of the House and faced· the late Speaker Sam Rayburn.

The House · was very still. It was about to witness the swearing in, not only of the first Congressman from Hawaii, but the first American of Jap­anese descent to serve in either House of the Congress.

"Raise your right .hand and repeat af· ter me," intoned Speaker Rayburn.

The hush deepened as the young Congressman raised not his right hand

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17342 CONGRESSIONAL RECORD- HOUSE August 23

but his left, and he repeated the oath of office.

There was no right hand, Mr. Speaker. It had been lost in combat by that young American soldier during World War II. Who can deny that, at that moment, a ton of prejudice slipped quietly to the floor of the House of Representatives.

Now, 3 years later, I can proudly re­port that high on the credit side of our vote in admitting . Hawaii to statehood is the fact that Hawaii sent DANIEL INOUYE to Washington.

I have watched his comparatively brief career here with far more than academic interest. I wanted him to succeed, not because of his political affiliation but be­cause he was to be a living symbol of what we did when we added the 50th star to our flag.

I say now, coaly and dispassionately, that Congressman INOUYE's record here, his · impact on the rest of us, his zeal and energy have surpassed by a thou­sandfold my greatest hopes.

It is not easy for a young man to be the first Representative of his State in tliis historic pody. It was not easy. for a young man to come here as the first per­son of his ethnic origin to serve in either House of the Congress.

He must have been aware that what he said an.d did would attract far more attention than if the words and deeds were those of any other Member. De­spite this pressure he· did indeed come, see, and conquer, not only our critical judgment but our hearts. ·

Three years is a short space in which to accomplish much here. Freshmen are supposed to yield to their seniors, to be seen and not heard: But, when you are · the only voice of your State in this House and when that State is new and faced with the problems of newness, you can­not "age in the wood."

The record will show that DANIEL INOUYE has accpmplished for his State, in 3 years, more than many of us might expect to accomplish in a decade.

Permit me to recite a few of those accomplishments.

His first task was to seek, for his new State, important concessions in the so­called statehood omnibus bill. Through his personality, hard work, and sagacity he carved a legislative milestone, win­ning for his State an additional $6 mil­lion in lieu of land grants customarily granted new States, but not available to Hawaii.

A more recent accomplishment was in an arena away from the House floor. He was a moving spirit in the settlement of the Hawaii shipping strike, a role at­tested by a letter of commendation from President J{ennedy.

We all recall the recent great prob­lems in enacting a new sugar law. The gent~eman from . Hawaii did yeoman work on that bill. Although he ranks 17th on the committee iri seniority, it is significant that he was one of four selected to serve on the conference com­mittee. Hawaii, as one observer noted, "batted 1,000 percent," achieving long-. range stability for that important crop and winning a framework in which it can and will :flourish.

Through his earnest efforts, the United States is moving forward with a great and exciting experience in its cultural contacts with Asiatic peoples. I refer to the East-West Cultural Center at the University of Hawaii, in which we have invested $20 million and from which untold benefits will flow. It is significant that Mr. INOUYE has received every dol­lar requested from a committee which is hardly extravagant.

Congressman INOUYE has been drafted repeatedly for missions abroad, where he has stood as a living symbol of true Americanism. He is a member of the Interparliamentary Union-the first freshman Congressman ·ever to serve. He was an American delegate to the United States-Mexico Parliamentary Conference and to the United States­Canada Conference. Under President Eisenhower, he was cochairman of the President's people-to-people program in charge of the Far Eastern program:

In 1960 he was selected by tne u.s. Junior Chamber of Commerce as one of the 10 outstanding young men of the year.

During his 3 years, he has seen to it that the millions of dollars in water­shed, reclamation, harbor, and airport projects allocated to his State have been spread to the several islands to assist in the development of the whole State.

I hope I have painted a portrait of the complete Congressman, zealous in his efforts for his State and outstanding in the national arena. If not, I missed my goal because I believe DANIEL INOUYE has set a standard which waves high above the average and normal.

We wish him well in the days which lie ahead.

RELIEF FOR L09AL TAXPAYERS The SPEAKER pro tempore (Mr.

LIBONATI). ·Under previous order of the House, the gent~eman from Michigan [Mr. O'HARA] is recognized for 20 min-utes. ·

Mr. O'HARA of Michigan. Mr. Speak­er, the President's recent television ad­dress with regard to Federal tax reform was, of course, of great interest to us all. I, for one, share the President's be­lief that the Internal Revenue· Code must be overhauled to eliminate loopholes and inequities and · to encourage economic growth. As far as I am concerned, the sooner this is done the better.

Such a review will provide a good op-. portunity to relieve some of the unin­tentional hardship resulting from the patchwork pattern of taxes to which our citizens are now subject. The tax dollar is vigorously pursued by various unitS of Government with income taxes, real es~ tate taxes, excise taxes, sales taxes, and personal property taxes, among others. The modern American is subject to just about every tax ever devised by the in­genujty of man.

TOO MANY TAX COLLECTORS

It must sometimes seem to him that there is a tax collector at the front door, a tax collector at the back door, and a third attempting entcy at a window.

It is not within the power of the U.S. Congress to dictate to the States or to

the cities with regard to how they shall or shall not tax persons within their jurisdiction. However, it is within our power to make appropriate changes in the Federal tax structure to provide a measure of relief from the effects of too many taxes and taxing jurisdictions.

REFUND OF DETROIT INCOME TAX

I have introduced H.R. 12388, which is designed to provide such tax relief in a significant way. My proposal would permit an individual taxpayer, within limits, to reduce his Federal income tax by the amount of State or city income tax he has had to pay.

For example, if an individual has paid $50 in State or city income tax his Fed­eral tax would be reduced by $50. If the full amount of his Federal income tax has already been withheld from his wages, he would be entitled to a $50 refund.

The limitation of which I spoke is that taxpayers could not reduce their Federal taxpayment by more than 5 percent on account of any State or city income tax paid.

As a practical matter; for taxpayers in the two lowest Federal income tax brackets-and this includes the vast majority of all taxpayerS--the amount of Federal tax credit permitted would approximately ~qual a 1-percent State or city income tax, such as that recently imposed by the city of Detroit.

··No·te that my bill permits a dolla:r-for­dollar reduction of Federal ilicome · tax on account of State or local income taxes paid. Under existing law, an itemized deduction can be · tak~n for State or local taxes. This is of no benefit whatsoever to the many taxpayers who take the standard deduction instead of itemizing th~ir deductions. Even itemizing deduc­tions, most taxpayers now save less than · 25 cents in Federal income tax for each dollar paid in State or local income tax instead of the dollar-for-dollar reduction I am proposing.

. NO SUBSTITUTE FOR STATE TAX REFORM

I do not pretend that my bill would be a substitute for State tax reform. In­deed, there is no substitute for effective ta~ reform by the States.

It is a matter of deep regret to me that the State legislature of my own State of Michigan has consistently and stubbornly refused to take constructive action to revise and overhaul Michigan's outmoded and unfair tax system.

It is the legislature's repeated refusal to take such necessary steps which has caused the financial crisis of Michigan's cities and has led to the scramble of the

. cities to tax the incomes of their resi­dents and' of nonresidents working with­in their boundaries.

PROPERTY TAXES TOO HIGH

Nor is the widespread resort to city income taxes, with their great potential for inequity, double taxation, and un­h_ealthy. municipal competition, the only consequence of State and local reliance upon outmoded and uri{air revenue sys­te~s. A second, inore serious, conse­quence to families of moderate income who are buying a home under a mortgage or land contract and to homeowners

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1962 CONGRESSIONAL RECORD-· HOUSE 17343 whose incomes-have been reduced by re­tirement, illness, or unemployment, is an excessive reliance upon property taxes to supply the revenues required for expand­ing municipal and .educational needs. In the years since World War II, property tax collections have increased at twice the rate of Federal tax coliections. Property taxpayers are today carrying altogether too much of the load.

TAX RELIEF NOW

Passage of my bill permitting a Fed­eral income tax credit for State or local income taxes paid will not solve all prob­lems. Nev~rtheless, we who serve in the U.S. Congress have a responsibility to do what we can to remedy inequities of which we have knowledge and to create conditions under which State and ·local governments may more readily under­take necessary changes in their own ·tax structure. Enactment of H.R. 12388 would be a step in that direction.

I might add,·that I am gratified by the response of many local governments to my bill. Its passage has been supported by resolutions adopted by a number of city councils, including those of Warren, St. Clair Shores, Roseville, and Fraser, Mich., in the congressional · district which I represent. . I believe that action upon the prin­ciples embodied in this bill should not be postponed. However, if a · fuial de­cision is made to delay undertaking Fed­eral tax reform until next year, I shall, at that time, reintroduce H.R. 12388 and again urge its consideration.

SPECIAL ORDERS GRANTED By unanimous consent, permission to

address the House, following the legis­lative program and any special orders heretofore entered, was granted to:

Mr. PELLY, for 15 minutes, today. Mr. O'HARA of Michigan <at the re­

quest of Mr. ALBERT), for 20 minutes, to­day, and to revise and extend his remarks and include extraneous matter.

EXTENSION OF REMARKS By unanimous consent, permission to

extend remarks in the CoNGRESSIONAL RECORD, or to revise and extend remarks, was granted to:

(The following Members <at the re­quest of Mr. ALBERT) and to include extraneous matter:) -

Mr.ANFuso. Mr. ToLL. Mr. RAINS. Mr. JoHNsoN of Maryland.

SENATE .BILLS REFERRED Bills of the Senate of the following

ti ties were taken from the Speaker's ta­ble and, under the rule, referred as fol­lows:

S. 2358. An act to improve the adlriinistra­tion of transfers of certain real property for wildlife or other purposes by repealing the act of May 19, 1948, and incorporating the essential provisions thereof in the Federal Property and Administrative Services Act of 1949, as amended; to the Committee on Mer­chant Marine -and Fisheries.

S. 3389. An act to promote the foreign com­merce of the United States through the use of mobile trade fairs; to the Committee on Interstate and Foreign Commerce.

ENROLLED BILLS ·siGNED Mr. BURLESON, from the Committee

on House Administration, reported that that committee had examined and found truly enrolled bills of the House of the following titles, which were thereupon signed by the Speaker:

H.R. 3728. An act to amend chapter 11 of title 38, United States Code, to authorize special consideration for certain disabled veterans suffering blindness or bilateral kidney involvement;

H.R. 8564. An act to amend the Federal Employees' Group Life Insurance Act of 1954 to provide for escheat of amounts of insur­ance to the insurance fund under such act in the absence of any claim for payment, and for other purposes;

H.R. 10651. An act to amend title 28, United States Code, with respect to fees of U.S. marshals, and for other purposes;

H.R. 11523. An act to authorize -the em­ployment without compensation from the Government of readers for blind Government employees, and for other purposes; and

H.R. 12355. An act to amend the law re­lating to the final disposition of the prop­erty of the Choctaw Tribe.

SENATE ENROLLED BILLS . .ANI) JOINT RESOLUTIONS SIGNED

The SPEAKER announced his signa- , ture to enrolled bills and joint resolutions of the Senate of the following titles:

S.1005. An act to amend section 10 and section 3 of the Federal Reserve ·Act, and for other purposes;

S. 1781: An act for the rellef of the heirs of Lt. Col. James Murray Bate (deceased) and Maj. Billie Harold Lynch (deceased) ;

S. 1849. An act for the relief of Stephen S. Chang;

S. 2179. An act to amend section 9(d) (1) of the Reclamation Project Act of 1939 (53 Stat. 1187; U.S.C. 485), to make additional provision for irrigation blocks, and for other purposes; '

S. 2256. An act to amend section 5 of the War Claims Act of 1948 to provide detention and other benefits thereunder to certain Guamanians kllled or captured by the Jap­anese at Wake Island;

S. 2574. An act for the relief of Constantina Caraiscou;

S. 2686. An act for the relief of SOO,panida Losowskaja;

S. 2736. An act for the relief of Arie Abramovich;

S. 2751. An act for the relief of Susan Gudera, Heinz Hugo Gudera, and Catherine Gudera; "

S. 2835. An act for the relief of Sieu-Yoeh Tsai Yang;

S. 2862. An act for the relief of Mai Har Tung;

S. 2876. An act to extend for 1 year the authority to insure mortgages under section 809 and 810 of the National Housing Act; ·

S. 3016. An act to amend the act of March 2, 1929, ~nd the act of August 27, 1935, relating to loadlines for oceangoing and coastwise -vessels, to establish liability for surveys, to increase penalties, to permit deeper loading in coastwise trade, and for other purposes; .

S. 3039. An act for the relief of Bartola Maria s. La Madrid;

S.J. Res .. 132. Joint resolution extending recognition to the International Exposition for Southern California in the year 1966 and authorizing the President to issue a proclamation calllng upon the several States of the Union and foreign countries to take part in the exposition; and

S.J. Res. 179. Joint resolution authoriz­ing and requesting the President to desig­nate Aprll 21, 1963, as a day for observance of the courage displayed by the uprising in the Warsaw ghetto against the Nazis.

ADJOURNMENT Mr. ALBERT. Mr. Speaker, I move

that the House do now adjourn. The motion was agreed to; accord­

ingly (at 12 o'clock and 49 minutes p.m.), under its previous order, the House ,adjourned uptil Monday, August 27, 1962, at 12 o'clock noon.

EXECUTIVE COMMUNICATIONS, ETC.

Under clause 2 of rule XXIV, execu­tive~ communications were taken from the Speaker's table and referred as fol­lows: _,

2439. A letter from the Secretary of the Treasury, transmitting a report covering the progress made in liquidating the assets of the former Reconstruction Finance Corpo­ration for the quarterly period ending June 30, 1962, pursuant to (67 Stat. 230), and Reorganization Plan No. 1 of 1957 (22 F.R. 4633) ;· to the Committee on Banking an4 Currency.

2440. A letter from the Secretary of State, transmitting a report on the fiscal opera­tions of the United Nations to supplement the present annual report to the Congress on United Nations affairs1 pursuant to the request of the President; to the Committee on Foreign Affairs.

2441. A letter from the Comptroller Gen­eral of the United States, transmitting are­port on examination of the pricing of repair parts for Mk-118 and Mk-119 computers under Department of the Navy fixed-price incentive contract NOrd-17812 with Ford Instrument Co., division of Sperry Rand Corp., Long Island City, N.Y.; to the Com­mittee on Government Operations.

2442~ A letter from the Assistant Secretary of the Interior, transmitting a proposed con­cession contract with Super Attractions, Inc., which will authorize the corporation to pre-

_sent theatrical productions at the Carter Barron Amphitheater in Rock Creek Park, District of Columbia, for the period No­vember 1, 1962, through October 31, 1967, purs:uant to (70 Stat. 543); to the Committee on Interior and Insular Affairs.

2443. A letter from the Assistant Secre­tary of the Interior, transmitting a deter­mination relating to the deferment of the 1962 repayment installment due from the Pershing County Water Conservation Dis­trict, Humboldt project, Nevada, pursuant to Public Law 86-308; to the Committee on In­terior and Insular Affairs.

2444. A letter from the Assistant Secretary of the Interior, transmitting a draft of a proposed bill entitled "A bill to ratify Cer­tain conveyances of land on the Crow Indian Reservation," to the Committee on Interior and Insular Affairs.

2445. A letter from the Assistant Secre­tary of the Interior, transmitting a draft of a proposed bill entitled "A bill to amend sub­section 204(4) of the Hawaiian Home Com­mission Act"; to the Committee on Interior and Insular Affairs.

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17344 CONGRESSIONAL .RECORD- HOUSE August 23 2446. A letter from the Deputy Director,

Central Intelligence Agency, transmitting a report of tort claims paid by the Central Intelligence Agency for the fiscal year 1962, pursuant to Public Law 79-601; to the Com­mittee on the Judiciary.

2447. A letter from the Attorney General, transmitting a repor:t relating to informa­tion received .from Federal, State, ap.d ~ocal agencies of government concerning identical bidding in advertised procurement, pur­suant to section 7 of Executive Order 10936 issued April 24, 1961; to the Committee on the Judiciary. ·

2448. A letter from the Administrator, National Aeronautics and Space Administra­tion, transmitting a report to the Committee on Science ·and Astronautics of the House of Representatives pursuant to section 3 of the act of July 21, 1961 (75 Stat. :a16, 217), and submitted to the House of Represent­atives pursuant to rule XL of the Rules of the House of Represel;l.tatives; to the Com-mittee on Science and Astronautics. ·

2449. A letter from the Secretary of Com­merce, transmitting the annual report on scientific research grants for the fiscal year 1962 for the Department of Commerce, pur­suant to Public Law 934, 85th Congress; to· the Committee on Science and Astronautics.

REPORTS OF COMMITTEES ON PUB­LIC BILLS AND RESOLUTIONS

Under clause 2 of rule XIII, pursuant to the order of the House of August 20, .1962, the following bills were reported on August 21, 1962:

Mr. McMILLAN: Committee on the District of Columbia. S. 3317. An :act to amend provisions of law relating to personal property coming into the custody of the prop­erty clerk, Metropolitan Police Department, and for other purposes; with amendment (Rept. No. 2257). Referred to the Committee of the Whole House on the State of the Union.

Mr. McMILLAN: Committee on the Dis­trict of Columbia. H.R. 10916. A b111 to amend the act known as the "Life Insur­ance Act" of the District of Columbia, ap­proved June 19, 1934, and the act known as the "Fire and CaslJalty Act" of the District of

· Columbia, approved October 3, 1940; with amendment (Rept. No. 2258). Referred to the House Calendar. ·

Mr. McMILLAN: Committee on the District of Columbia. H.R. 12418. A bill to amend the act entitled "An act to authorize the Commissioners of the District of Columbia to make regulations to prevent and control the spread of communicable and preventable diseases," approved August 11, 1939, as amended; without amendment (Rept. Na. 2259). Referred to the Committee of the Whole House on the State of the Union.

Mr. McMILLAN: Committee on the District of Columbia. H.R. 12467. A bill to amend the act of June 4, 1948, as it relates to the appointment of the District -of Columbia Armory Board; without amendment (Rept. No. 2260). Referred to the Committee of the Whole House on the State of the Union.

[Submitted August 23, 1962]

Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and .reference to ·the proper calendar, as follows:

Mr. McMILI:..AN: Committee on the District of Columbia. S. 2250. An act to provide for the incorporation of the National Women's Relief Corps, Auxiliary to the Grand Army of -the Republlc, organized 1883, 78 years old; -without amendment (Rept. No. 2263). Re-ferred to the House Calendar.

Mr. ASPINALL: Coinll\ittee of conference. H.R. 10062. A bill to extend the application

of certain laws. to American Samoa (Rept. N9. 2264). Ordered to be prlnted.

Mr. ROBERTS of Alabama: Committee on Interstate and Foreign Commerce. H.R. 12833. A bill to amend the act of July 14, 1955, relating to air pollution control, to au­thorize appropr~ations for an additional 2-year period, an<;~ for other purposes; without amendment (Rept. No. 22·65) . Referred to the Committee of the Whole House on the State of the Union.

Mr. DAVIS of Tennessee: Committee on Public Works. H.R. 11799. A bill defining the interest of local public agencies in water reservolrs constructed by the Government which have been financed partially by such agencies; without amendment (Rept. No. 2266) . Referred to the Committee of the ·whole House on the State of the Union.

REPORTS PRIVATE TIONS

OF COMMITI'EES ON BILLS AND RESOLU-

Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and reference to the proper ,calendar, as follows:

Mr. LIBONATI: Committee on the Judi­ciary. S. 149. An -act for the relief of the estate of Gregory J. Kessenich; without amendment (Rept. No. 2261) . Referred to the Committee of the Whole HoUse.

Mr. LANE: Committee on the Judiclary. H.R. 10897. A bill for the relief of Joseph Hammqnd; without amendment (Rept. No. 2262). Referred to the Committee of the

' Whple 'House.

PUBLIC BILLS AND RE~OLUTIONS Under clause 4 of rule XXII, public

bills and resolutions were introduced and severally referred as follows:

By Mr. BLATNIK: H.R. 12954. A bill to amend the Tariff Act

of 1930 to provide that any payment or reim­bursement to the United States required by such act for extra compensation paid cus­toms omce.rs and employees on account of private aircraft traveling between the United States and Canada or Mexico shall be on the basis of fiat fees prescribed by the Secretary of the Treasury; to the Committee on Ways .and Means.

By Mr. BROOKS of Texas: H.R. 12955. A bill to authorize the modifi­

cation of the existing project for Sabine­Neches Waterway, Tex.; to the Committee on Public Works.

By Mr. DERWINSKI: H.R. 12956. A bill to increase the· maxi­

mum amount of insurance applicable to ac­counts in savings and loan institutions undel' title IV of the National Housing Act from $10,000 to $20,000; to the Committee on Banking and Currency.

H.R.12957. A bill to increase the maximum amount of an insured deposit under the Federal Deposit Insurance Act from $10,000 to $20,000; to the Committee on Banking and Currency. ·

By Mr. DORN: H.R: 12958. A bill to prohibit interstate

xontributions ln connection with congres­~ional primaries .and. elections and with elec­tions for electors of the President; to the Committee on House Administration.

By Mr. GLENN: H .R. 12959. A bill to authorize th'e Secre­

tary of the Interior to construct two modern ·stern ramp .trawlers to be used for research, ·and for other purposes; to the Committee on Merchant Marine and Fisheries.

H.R. 12960. A bill to amend tbe act of June 12, 1960, for the correction of ~nequi:­ties in the construction of fishlng vessels.

and for other purposes; to the Committee on Merchant Marlne and Fisheries.

By Mr. HOLIFIELD: H.R.12961. A bill to amend the Adminis­

trative Expenses Act of 1946 (60 Stat. 806), as amended (5 U.S.C. 73b-:i), to authorize payment of expenses for storage of house­hold goods and personal effects of civilian employees assigned to isolated duty stations; to the Committee on Government Opera­tions:

By Mr. !CHORD of Missouri: H.R. 12962. A bill to authorize the Secre­

tary of Agricultur~ to accord fair and equi­table treatment to producers who, while par­ticipating in the special wheat program for 1962 or the special feed grain program for 1961 or 1962, relied upon the erroneous ad­vice of authorized representatives of the Secretary; to the Committee on Agriculture.

.By Mr. JOHNSON of Maryland: H.R. 12963. A bill to requlre certain safety

devices on motor vehi.cles sold, shipped, or used in interstate commerce, and for other purposes; to the Committee on Interstate and Foreign Commerce. -

By Mr. McMILLAN: · H.R. 12964. A bill to amend the act of'Feb­ruary 9, 1907, en:tltled, "An act to define the term 'registered nurse' and to provide · for the registration of nurses in the District of Columbia," as amended, with respect to the ' minimum age limitation for registration; to the Committee on the District of Columbia.

By Mr. RIVERS of Alaska: H.R. 12965. A bill to improve and encour­

age collective bargaining between the man­agement of the Alaska Railroad and repre­.sentatives of its employees, and to permit to the extent practicable the adoption by tP.e Alaska Railroad of the personnel ,poli-

. cies and practices of the railro~d ind}l~try; to the Committee on Post omce and Civil Service. ·

By. Mr. TOLLEFSON: H.R. 12966. A bill to exclude cargo which

is lumber from conference agreements un­der the Shipping Act, 1916, and from cer­tain tariff filing requlrements under such act; to the Committee on Merchant Marine and Fisheries.

H.R. 12967. A bill to amend the act of June 12, 1960, for the correction of inequities in the construction of fishing vessels, and for other purposes; to the Committee on Mer­chant Marine and Fisheries.

By Mr. ZELENKO: H.R. 12968. A bill to amend section 901(b)

of the Merchant Marine Act, 1936, to elimi­nate certain time limitations; to the Com­mittee on Merchant Marine and Fisheries.

PRIVATE BILLS AND RESOLUTIONS

Under clause 1, of rule XXII, private bills ·and resolutions were introduced and severally referred as follows:

By Mr. ADDABBO: H .R. 12969. A bill for the relief of Cosima

Barbetta; to the Committee on the Ju­diciary.

By Mr. BROYHILL: H.R. 12970. A bill for the relief of Richard

E. Reedy; to the Committee on the Judicia . By Mr. McFALL:

H.R. 12971. A bill for the relief of Dr. Dionysius I. Macatiag; to the Committee on the Judiciary.

By Mr. TEAGUE of California: H.R. 12972. A bill for the relief of Mrs.

..Sumi Kato; to the Committee on the Judi­ciary.

By Mr. ZELENKO: , H.R. 12973. A bill to provide that th,e ves­sel SS Glenbrook may be a U.S.-fiag commer­cial vessel for the purposes of section 901 (b)

.of the Merchant Marine Act, 1936; to the Committee on Merchant Marine and Fish-eries.

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1962 CONGRESSIONAL. RECORD- SENATE 17345 . By Mr. COLMER: ized to meet durtrig the session · of the

·Senate today: H.J. Res. 859. Joint resolution authorizing the President of the United States to issue a proclamation declaring Sir Winston Churchill to be an honorary citizen of the United States of America; to the Committee

The permanent Subcommittee on In­vestigations of the Committee on Gov­

.. emment Operations. on the Judiciary. ·

•• •• SENATE

THURSDAY, AUGUST 23, 1962

The Senate met at 10 o'clock a.m., and was called to order by the Presi­dent pro tempore.

The Chaplain, Rev. Frederick Brown Harris, D.D., offered the following prayer:

Eternal Spirit, Thou who art not far o:ff on the vast rim of the universe, but closer than hands or feet--a present help: As we move through this world of abounding wonder, give us to realize that every gleam of beauty is a pull toward Thee, every pulse of love is a tendril that draws in Thy direction, every vindication of truth links our finite minds up to the Mind that undergirds us, and every deed of good will fulfills all our tiny adventures of faith.

As we think of the peace that comes alone with' the climate of unselfish good will to all men, we pray Thy blessing upon the President of this body as he wings his way to faraway, historic lands where the ferment of these agitated

·times is erupting in yeasty social com­motion. Strengthen the impact his presence brings as the voice of America in the countries to which he goes, as he speaks for the Republic whose servant he is, as he refutes false witness spread by those who hate freedom, and as he brings to multitudes the assurance that the hope and might of this free land are with them in resisting tyranny and in their quest for more abundant life.

This we lift up as our soul's prayer in the Spirit of Christ: Amen.

, THE JOURNAL On request of Mr. MANSFIELD, and by

unanimous consent, the reading of the Journal of the proceedings of Wednes­day, August 22, 1962, was dispensed with.

MESSAGES FROM THE PRESIDENT Messages in writing from the Presi­

dent of the United States submitting nominations were communicated to the Senate by Mr. Miller, one of his secre­taries.

LIMITATION .OF DEBATE DURING MORNING HOUR

On request of Mr. MANSFIELD, and by unanimous consent, statements during the morning hour were ordered limited to 3 minutes.

COMMITI'EE MEETINGS DURING SENATE SESSION

On request of Mr. MANsFIELD, and by unanimous consent, the following com- .

. mittees or subcommittees were author-

The Public Lands Subcommittee of the Committee on Interior and Insular Affairs .

The Internal Security Subcommittee of the con1mittee on the Judiciary.

The Committee on Armed Services.

EXECUTIVE COMMUNICATIONS, ETC.

The PRESIDENT pro tempore laid before the Senate the following letters, which were referred as indicated:

REPORT ON MODIFICATIONS AT ATLANTIC MISSILE RANGE, CAPE CANAVERAL, FLA.

A letter from the Administrator, National Aeronautics and Space Administration, Washington, D.C., reporting, pursuant to law, on certain modifications to the gantry at pad 12, Atlantic Missile Range, Cape Canaveral, Fla.; to the Committee on Aero­nautical and Space Sciences.

WORLD FOOD CONGRESS

A letter from the Secretary of State, trans­mitting a draft of proposed legislation au­thorizing an appropriation to enable the . United States to extend an invitation to the Food and Agriculture Organization of the United Nations to hold a World Food Con­gress in the United States in 1963 (with an accompanying paper); to the Committee on Foreign Relations.

CONVEYANCE OF CERTAIN LAND ON CROW INDIAN RESERVATION

A letter from the Assistant Secretary of the Interior, transmitting a draft of pro­posed legislation to ratify certain convey­ances of land on the Crow Indian Reserva­tion (with an accompanying paper); to the Committee on Interior and Insular Affairs.

AMENDMENT OF HAWAUAN HOMES ,CoMMISSION Acr

A letter from the Assistant Secretary of the Interior, transmitting a draft of pro­posed legislation to amend subsection 204( 4) of the Hawaiian Homes Commission Act (with !)on accompanying paper); to the Com­mittee on Interior and Insular Affairs.

REPORT ON IDENTICAL BIDDING IN PUBLIC PROCUREMENT

A letter from the Attorney General, trans­mitting, pursuant to law, a report on iden­tical bidding in public procurement, dated July 1962 (with an accompanying report); to the Committee on the Judiciary.

PETITIONS AND MEMORIALS Petitions, etc., were laid before the­

Senate, or presented, and referred as indicated:

By the PRESIDENT pro tempore: A resolution adopted by the Legislature

of the State of Florida; to the Committee on the Judiciary:

"HOUSE MEMORIAL 18-X

"Memorial to the Congress of the United States of America urging the Congress to submit a constitutional amendment re­serving, granting, and confirming power and jurisdiction relating to the apportion­ment and reapportionment of the member­ship of State legislatures to the States without review of the Federal courts, and further urging the Congress to enact im­mediate interim legislation under article III, section 2, of the U.S. Constitution

limiting appella.te jurisdiction of the · Su­preme Court "Whereas the apportionment of the mem­

bership of State legislatures, both the house and senate, is properly a State and not a Federal question; and

"Whereas there has been some effort re­·~ently by some of the lower Federal courts, not only to determine the validity of the apportionment or reapportionment of the membership of State legislatures, but also to make apportionment or reapportionment by judicial decree; and

"Whereas such judicial proceedings seri­ously in~erfere with States rights and the freedom of government by the people of the several States; and

"Whereas such judicial proceedings are a ma$Sive repudiation of the experience of our whole past and are a deliberate, palpable, and dangerous exercise of powers not granted to the Federal judiciary by the U.S. Constitution; and

"Whereas it appears to be the view of the Federal judiciary that population numbers are a principal consideration ln determining the validity of apportionment laws relating to the representation in both houses of a bicameral legislative body; and

"Whereas it has long been the custom, usage, .and law of the State of Florida and the several States that other factors in addi­tion to population ought to . be considered in arriving at fair and equitable representa­tion in State legislative bodies; and

"Whereas it is necessary that the Congress· enact suitable laws relating to both the orig­inal jurisdiction of the Federal district courts and appellate jurisdiction of the u.s. su­preme Court; pursuant "to power vested in the Congress by article III, section 2, of the U.S. Constitution and any other applicable laws until such time as the Federal judiciary's encroachment into the field of State legis­lative apportionment traditionally reserved unto the States is curbed: Now, therefore, be it ·

"Resolved by the Legislature of the State of Florida, That the Florida Legislature hereby and herein petitions the Congress of the United States of America, and each House and Member thereof, to draft and sub­mit a suitable amendment to the U.S. Con­stitution, specifically reserving, granting, and clearly confirming exclusive power and juris­diction relating to the .apportionment and reapportionment of the membership of State legislatures to the several States and to spell out that State action in this field is not sub­ject to review by the Federal courts; and be it further

"Resolved, That the Florida Legislature hereby and herein petitions the Congress of the United States of America, and each House and Member thereof, to draft, submit, and enact a suitable law having the effect of excluding from the original jurisdiction of the Federal district courts cases relating to State legislative reapportionment and ex­cluding from the appellate jurisdiction of the U.S. Supreme Court cases relating to State legislative apportionment pursuant to powers conferred upon the Congress by arti­cle III, section 2, of the Constitution of the United States, which provides in material part as follows:

" 'In all other cases before mentioned, the Supreme Court shall have appellate jurisdic­tion, both as to law and fact, with such e~­ceptions and under such regulations as the Congress 'shall make'; and be it further

"Resolved, That copies of this memorial be transmitted forthwith by the chief clerk of the house and the secretary of the senate of the State of Florida to the President of the · United States, the Vice President of the United States as Presiding. omcer of the Sen­ate, the Speaker of the House of Representa­tives of the Congress. of the United States, to each of the congressional delegation from