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HEARING

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COMMITTEE ON ARMED SER VIC

-UNITED STATES SENATE

EIGHTY-SEVENTH CONGRESS

FIRST SESSION

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NOMINATION OF FRANK BURTON ELLIS, OF LOUISIANA,

NOMINEE-DESIGNATE FOR DIRECTOR OF THE OFFICE

OF CIVIL AND DEFENSE MOBILIZATION

JANUARY 26, 1961

Printed for the use of the Committee on Armed Services

U.S. GOVERNMENT PRINTING OFFICE

64884 WASHINGTON : 1961
COMMITTEE ON ARMED SERVICES

RICHARD B.

HARRY FLOOD BYRD, Virginia

JOHN STENNIS, Mississippi

STUART SYMINGTON, Missouri

HENRY M. JACKSON, Washington

SAM J. ERVIN, JR., North Carolina

STROM THURMOND, South Carolina

CLAIR ENGLE, California

E. L. BARTLETT, Alaska

HOWARD W. CANNON, Nevada

ROBERT C. BYRD, West Virginia

HARRY L.

RUSSELL, Georgia, Chairman

STYLES BRIDGES, New Hampshire

LEVERETT SALTONSTALL, Massachusetts

MARGARET CHASE SMITH, Maine

FRANCIS CASE, South Dakota

PRESCOTT BUSH, Connecticut

J. GLENN BEALL, Maryland

WINGATE, Jr., Chief Clerk
CONTENTS

Statements of— Page

Ellender, Hon. Allen J., a U.S. Senator from the State of Louisiana__ 1

Ellis, Frank Burton, nominee-designate for Director of the Office of Civil and Defense Mobilization 4

Long, Hon. Russell B., a U.S. Senator from the State of Louisiana___ 2

III
e ..
NOMINATION OF FRANK BURTON ELLIS, NOMINEEDESIGNATE FOR DIRECTOR, OFFICE OF CIVIL AND

DEFENSE MOBILIZATION

THURSDAY, JANUARY 26, 1961

U.S. SENATE,

COMMITTEE ON ARMED SERVICES,

Washington, D.C.

The committee met, pursuant to notice, at 10:30 a.m., in room 212,

Old Senate Office Building, Senator Richard B. Russell (chairman)

presiding.

Present: Senators Russell (chairman), Stennis, Symington, Engle,

Cannon, Bridges, Saltonstall, Smith, Case, and Beall.

Also present: Senators Ellender and Long of Louisiana.

William H. Darden of the committee staff; Harry L. Wingate, Jr.,

chief clerk; T. Edward Braswell, Gordon Nease of the committee

staff; and Herbert S. Atkinson, assistant chief clerk.

Chairman RUSSELL. The committee meeting today on this, our

regular meeting day, is for the purpose of receiving testimony from

two additional nominees-designate to very important positions in the

executive branch.

The nominations for these positions have not yet been received by

the Senate, but in continuation of our policy of attempting to act

promptly on any and all nominations, the Chair considered it appropriate to invite these gentlemen here this morning.

The first nominee-designate is Mr. Frank B. Ellis, whom the President has indicated will be nominated as Director of the Office of Civil

and Defense Mobilization.

In addition to the usual welcome that the Chair always extends on

behalf of the committee, the Chair desires to express his cordial personal welcome and congratulations to Mr. Ellis.

I have known Mr. Ellis personally for a number of years, and I

have the very highest regard for his character

'

patriotism, and ability.

I am pleased to see that both the distinguished Senators from Louisiana are present here today.

Senator Ellender, do you desire to make any statement to the

committee?

STATEMENT OF HON. ALLEN J. ELLENDER, A U.S. SENATOR FROM

THE STATE OF LOUISIANA

Senator ELLENDER. I have not much to add, Mr. Chairman, except

to say that Mr. Ellis is a very prominent citizen of my State. He is a

very prominent lawyer, and in my five times at the bat, that is when

I ran for office, of all who ran against me he is the one who gave me

the greatest tussle. [Laughter.]

1
2 NOMINATION OF FRANK BURTON ELLIS

I am indeed glad to come before you to recommend him for this

high office.

Chairman RUSSELL. We will be glad to have you sit here at the

table, Senator.

Senator ELLENDER. No; I have some other matters to attend to.

Chairman RUSSELL. Mr. Ellis, will you take a seat at the end of

the table, please.

Senator Long, we will be very glad to hear from you. We are delighted to have you back with this committee, with which you are

quite familiar.

STATEMENT OF HON, RUSSELL B. LONG, A U.S. SENATOR FROM

THE STATE OF LOUISIANA

Senator LONG. Thank you very much, Mr. Chairman.

I am very happy to be with the committee this morning. It feels

extremely good to be with you on the Armed Services Committee for

a brief period.

Mr. Chairman, Mr. Ellis is one of the ablest and most outstanding

attorneys of Louisiana. He ventured briefly into politics, serving as

president pro tempore of the State senate some years ago.

He has enormous organizational capacity, in my judgment. He

organized and made possible the efforts to build an expressway along

Lake Pontchartrain that you have seen, I think. I know Senator

Stennis has been across it, the longest over-the-water bridge in the

world, I believe; and also the New Orleans Expressway for which he

was attorney. Mr. Ellis was the main moving power in doing these

things.

From a political point of view, we recruited him when we thought

we really needed somebody to help our Democrats win in Louisiana.

Mr. Ellis has been an indefatigable worker in anything he has

undertaken, and I believe you will find him well qualified for the

position that he aspires to.

Thank you very much.

Senator SALTONSTALL. Mr. Chairman, will the Senator yield for a

question? Does he confine Mr. Ellis' activities for the benefit of the

Democrats in Louisiana or for the whole State and the country?

Senator LONG. Most people are registered as Democrats there,

Senator Saltonstall, and we do not find much distinction in Louisiana.

But I would say for the good of the whole country he would do a very

good job.

He has been one that we have on occasion sought out to try to get

all factions together in Louisiana, and he has been a pretty good

common currency among all, to get along with all of them, and to

get people to work together, and I think that is one of the traits that

will be needed in this area.

Senator SALTONSTALL. I hope the Senator will not take my remarks

too seriously, but I did listen to him with a great deal of interest when

he confined it to a certain group.

Senator LONG. You are steadily improving your Republican leadership in Louisiana, Senator Saltonstall, I must confess that.

[Laughter.]

(The biographical sketch of Mr. Ellis together with the White

House press release follows:)
NOMINATION OF FRANK BURTON ELLIS

[From New York Times Profile and Who's Who in America]

BIOGRAPHY OF FRANK BURTON ELLIS

Frank Burton Ellis, attorney, who was born in Covington, La., near New

Orleans, 53 years ago, comes from a family prominent in the civic, political,

business, and cultural life of Louisiana and Georgia for more than four generations.

Educated at Gulf Coast Military Academy, the University of Virginia and LSU,

from which he received an LL.B. degree, Mr. Ellis was editor in chief of the

Academy's paper, a member of the University of Virginia boxing team, and

captain of the LSU football team. He was admitted to the Louisiana bar in 1930

and then joined his father's law firm. In 1943, he opened his own law offices in

New Orleans and is now senior partner of Ellis, Lancaster & King.

He was elected to the Louisiana Senate in 1940 and served as president pro tern

from 1940 to 1944. He was a delegate to the Democratic National Conventions

of 1952 and 1956, national committeeman from 1952 to 1954, and director of

the Kennedy-Johnson forces in 1960. He has served as a special assistant to the

attorney general of Louisiana, as a member of the Interstate Oil Compact Commission, and vice chairman of the New Orleans Aviation Board which built the

$20 million Moisant International Airport.

As attorney for the Greater New Orleans Expressway Commission, he was

instrumental in bringing about the construction of the 24-mile, $52 million Lake

Pontchartrain bridge and causeway which has been an outstanding financial

success and has helped develop the New Orleans metropolitan area.

A member of the Louisiana State, American, and International Bar Associations, and of the American Judicature Society, he served as a delegate to the

International Bar Association meeting in London and Paris in 1957.

A founder and now director of the New Orleans Opera Foundation, a former

deacon of the Presbyterian Church and Sunday school superintendent, he has

also been active in the Red Cross and various charitable and community organizations.

He is a member of a number of civic associations, including the Young Men's

Business Club of New Orleans and the chamber of commerce, in which he has

served on numerous committees.

In 1934 he married Alice Grima and they have three children—Lilian Emerson

(now Mrs. Stuart McLendon), Stephen Grima, and Frank Burton, Jr.

Home address, 4718 St. Charles Avenue, and office, Bank of Commerce Building,

New Orleans.

[For release January 23, 1961]

THE WHITE HOUSE

President John F. Kennedy today announced his intention to appoint Attorney

Frank Burton Ellis, of New Orleans, as Director of the Office of Civil and Defense

Mobilization.

In making this announcement, the President emphasized that the first order

of business for Mr. Ellis would be a review of the structure and functions of

the agency.

The President stated: "OCDM as presently constituted is charged with the

staff function of mobilization planning and, at the same time, with the operating

functions of civilian defense. Both these tasks are of vital importance to our

national security. I consider it imperative that they be organized and performed

with maximum effectiveness. Accordingly, I am asking Mr. Ellis, as his first

order of business, to join with the Director of the Budget in a thoroughgoing

review of our nonmilitary defense and mobilization programs. I am asking

Mr. Bell to arrange for close consultation on the matter with the Secretary

of Defense and other appropriate officials. I await the results of this survey

with interest and concern.

Ellis was born February 10, 1907, in Covington

'

La. the son of Harvey and

Margaret Ellis. He graduated from Gulf Coast Military Academy in 1924

prior to attending the University of Virginia for prelaw undergraduate studies.

He entered law school at Louisiana State University where, in addition to his

studies

'

he was captain of the varsity football team. Following his admittance

to practice in 1930 he worked in his father's law firm for several years.

In 1940 he was elected to the Louisiana State Senate and served as president

pro-tem of that legislative body. He is now senior partner of the law firm of

Ellis, Lancaster & King, of New Orleans.
4 NOMINATION OF FRANK BURTON ELLIS

Ellis is married to the former Miss Alice Grima. They have three children,

Mrs. Stuart McClendon; Stephen and Frank, Jr., all living in New Orleans.

The family home is at 4718 St. Charles Avenue.

Ellis has long been active in politics. He served as Democratic national committeeman from 1952 to 1954. He was an early supporter of President Kennedy

and directed the campaign in the State of Louisiana.

Chairman RUSSELL. You gentlemen having been able to settle the

status of the political parties in Louisiana, we will return to Mr. Ellis.

Mr. Ellis, it is our custom to ask nominees and nominees-designate,

to give us, the members of the committee, a brief statement of their

background and experience.

In your case, that will not be new information for me, but for the

record and for the membership of the committee who have not known

you, we would be glad to have you proceed to give us such a statement.

I may say this is a most responsible position to which Mr. Ellis

has been designated, because it not only includes the civilian defense

functions, but since the reorganization plans of President Eisenhower

it has to do with recommendations concerning the amount of imports

of many commodities, including oil, and it also makes recommenda.

tions as to stockpiling.

You may proceed, Mr. Ellis.

STATEMENT OF FRANK B. ELLIS, NOMINEE-DESIGNATE TO BE

DIRECTOR OF THE OFFICE OF CIVIL AND DEFENSE MOBILIZATION

Mr. ELLIS. Yes, sir; Mr. Chairman and members of the committee,

I wish to say, from the outset, that I did not seek this important

position.

I did seek with the new administration a high echelon position in

the Cabinet that would permit me to fulfill a lifelong ambition to be

of public service to my Nation, and to take part and to participate in

policymaking decisions during the course of the 4 years that President

Kennedy will serve this Nation.

I received the offer of this position unsolicited; it came to me just

a few days ago, and I have had only a few hours to make an abbreviated study of the OCDM operation; and I came to the conclusion

that it presented a chance for great public service.

The President placed his offer of this position on the supposition

that there would be an immediate analysis of the activities of this

organization from an administrative standpoint, from an operational

standpoint, throughout its farflung empire in the 50 States, and that

he was seriously concerned about its function.

He desired that report, after full consultation with the military and

with the Director of the Budget, and I have been ordered, if confirmed

by the Senate of the United States, to immediately begin the preparation of such a report, and based on it, an appropriate determination

will be made as to OCDM's organization and its future operation in

the years to come.

Senator, you suggested the possibility that I might deal in an

abbreviated way with my accomplishments in past years.

I believe that a brief biography has been placed on the desk of the

members of this Committee.

I was born in the small town of Covington across the lake from New

Orleans in 1907. I am 53 years of age, soon to be 54, and my family

is raised.
NOMINATION OF FRANK BURTON ELLIS 5

My wife is anxious to come to Washington to cooperate in any endeavor that I might have here.

I have over a period of years operated a very active and aggressive

law practice in the city of New Orleans. I was very active in the field

of law, and I participated very actively in the civic enterprises there

and in addition served as president pro-tern of the Louisiana Senate

from 1940 to 1944.

Senator Long mentioned the proposition that we had, or that I had

handled, a constitutional amendment which made it possible to connect New Orleans, whose people have always had a difficult time in

reaching the highlands to the north, with a 24-mile north-south

causeway across Lake Pontchartrain at a cost of $52 million.

• I handled the legislation, steered that project through to success;

and by that same legislation we built a $75 million bridge across the

Mississippi River.

In addition to that I have engaged in all forms and types of aviation

activities, serving as chairman of the board that built the new Moisant

Terminal at New Orleans at a cost of some $25 million.

My law practice has been variegated. I am the senior member of

my firm at the present time, and I have participated in the cultural

side of New Orleans and Louisiana and the South.

I have been interested in opera and I organized a foundation which,

for the first time, placed opera in New Orleans in the black from a

fiscal standpoint, which it hardly ever is.

. I might say, too, that my forebears have been in public service.

My grandfather served in the Congress of the United States following

the Civil War, and the Yankees captured him and incarcerated him

on Johnson's Island in Lake Erie, but we have no resentment about

that. [Laughter.]

In any event, he was in Congress, and then retired voluntarily to

practice law in Washington.

My uncle, my great uncle, Hoke Smith, was from Georgia and that,

Senator, makes me a Cracker in a lot of ways. He was Governor and

Senator from Georgia, and served in Cleveland's Cabinet as Secretary

of the Interior.

I believe that will be sufficient, except to say this: I know that there

has been substantial congressional criticism of this organization by the

Appropriation Committees and at other levels.

It is my desire to give priority attention to the task of completing

this report and then we will be able to come up with an analysis of this

organization, and recommendations to the President as to what should

be done to make it one of the great organizations functioning in

America today.

Chairman RUSSELL. Mr. Ellis, the office to which you have been

designated has a great deal of activity in the contract field with the

so-called put contracts which are, in effect, a guaranteed price to

certain producers to enable us to have productive capacity available

in the event of an all-out mobilization. In addition to that function,

your office is empowered to make recommendations on imports that

affect national security and as to whether the President should impose

any restrictions on imports of various commodities.

• Have you submitted to the committee any list of your stockholdings or financial interests that might be involved under the conflictof-interest policies of this committee?

64884-61--2
NOMINATION OF FRANK BURTON BLLIS

Mr. Emits. No, sir; I have not submitted a formal statement to

the committee, but I should be very happy to do so.

I might say orally that 

Chairman RUSSELL. You need not make any public statement

about it if you do not desire to. But we do want this information

before we take action.

Mr. ELLIs. Well, I would be glad to make a public statement on

it right now, Senator.

Chairman RUSSELL. That is entirely up to you. We are not requiring it to be done. We do not require it. If you do it it will be on your

own initiative.

Mr. ELLIs. My assets, Senator, are primarily in the field of real

estate, insurance, miscellaneous matters that are not of any great

moment, and which I would be perfectly willing to dispose of, but

they are mostly bank stocks and in local institutions.

Chairman RUSSELL. We have not required disposition of any bank

stocks. Do you own any oil stocks or aluminum stocks?

Mr. ELLIs. I own no oil or aluminum stocks or stocks in any

corporations dealing in critical materials, but I do have working

interests and royalty interests, both in Texas and in Louisiana in the

field of oil.

Chairman RUSSELL. What is the nature of that activity in which

you own an interest, Mr. Ellis?

Mr. ELLIs. The nature of the activity is a royalty in producing

wells, both gas and oil, and working interests in those same wells.

I differentiate the royalty from the working interest in that I am

simply a participating partner in the latter.

Chairman RUSSELL. Well, do any of these interests contract with

the Department of Defense or any other department of the United

States?

Mr. Emds. No, sir; none.

Chairman RUSSELL. Is it limited to the production and sale of

crude oil?

Mr. ELLis. Yes, sir; that is correct. Contracts, of course, are in

existence already for the sale of that crude oil to domestic refiners,

pipelines.

Chairman RUSSELL. You own no interest in any refineries?

Mr. ELLIs. None whatsoever.

Chairman RUSSELL. I see. It is limited to the production and sale

of crude oil?

Mr. ETA's. That is correct, Senator. I own no stocks in any companies that deal in critical materials.

Chairman RUSSELL. Senator Bridges?

Senator BRIDGES. I assume that as far as your activities are concerned, you will cooperate with us Yankees up north the same as

you would with your own people, and you have no feeling about any

section of the country; will you not?

Mr. ELLIs. Might I say, Senator, for the benefit of Senator Smith

and Senator Saltonstall, that for 10 years I had a home at York

Harbor on the coast of Maine, and I am practically a native up there.

[Laughter.]

Chairman RUSSELL. When you put yourself in the Far West, Mr.

Ellis, you will be practically related to all the members of this committee. [Laughter.]
NOMINATION OF FRANK BURTON ELLIS 7

Mr. Ews. I will have to go into Missouri and join Senator Symington at some time.

Chairman RUSSELL. Senator Stennis?

Senator STENNIS. Mr. Chairman, as a neighbor of Mr. Ellis I can

certainly testify as to his energy and his activity. He Is a doer, and

I think he will bring to this office very fine qualities. He got part

of his preparation in the Gulf Coast Military Academy over in

Mississippi.

Now, one serious question about oil, a subject that is kicked around

so much up here. Was your ownership in the form of a royalty right

or as a leaseholder or as a landowner?

Mr. Ews. Well, the royalties did not grow out of land ownership,

but grew out of royalties I received in connection, in the majority of

instances, with the practice of law.

Senator STENNIS. Well, I say, it is just roYalty, you just have a

royalty interest in the well, is that right?

Mr. Ews. That is right, sir.

Senator STENNIS. Of course, that is the most remote part of ownership so far as oil activities are concerned; is it not?

Mr. Ews. That is correct, Senator.

Senator STENNIS. It has nothing to do with the refinery or pipeline

or anything else?

Mr. Ews. Nothing whatsoever, sir.

Senator STENNIS. Just an interest in what comes out of the ground

in the raw state.

Mr. ELLis. That is right, sir.

Senator STENNIS. That is all.

Chairman RUSSELL. Senator Saltonstall?

Senator SALTONSTALL. Thank you, Mr. Chairman.

Mr. Ellis, may I say, first, that it is seldom that we hear our chairman give such a personal tribute to a gentleman as he had with respect

to you.

Mr. Ews. I am very honored, sir.

Senator SALTONSTALL. And may I say, secondly, you have chosen,

when you have chosen York Harbor as a summer residence, you have

shown a great deal of discretion. [Laughter.]

May I ask you two questions that concern us because they have

worried us as Members of Congress very much, particularly, I think,

in the industrial sections of the country.

Now, personally I have had a good deal of discussion and contact

with the various gentlemen who have held your position or the position you undoubtedly will hold with relation to imports.

Mr. ELLis. Yes, sir.

Senator SALTONSTALL. And what may be in short supply here

during any possible future conflict.

Mr. Ews. Yes, sir.

Senator SALTONSTALL. Have you given that subject any thought

as to what is your general attitude regarding imports, we will say, of

electrical machinery, turbines, and that sort of thing; and also importation of things like bailer twine and all articles of that character?

That is going to be in your decision to make, there is a question of

short supply as to whether imports coming in are comiq in at a lower

price. Have you thought about that at all? fc RE'

Mr. Ews. Senator, I have thought about it to this extent, of

course: that it is a function of this agency not to make such decisions

'74 TTAN

•

C,3
8 NOMINATION OF FRANK BURTON ELLIS

but to make recommendations to the Executive as to these matters,

and it is up to the Executive to act on them.

• Senator SALTONSTALL. That is correct.

Mr. Ews. That is correct, sir; and I have not, of course, in the

48 hours that I have been studying various ramifications of this

farthing agency, given any particular study to matters relating to the

import of critical materials.

. Senator SALTONSTALL. But what I would like to impress upon you

is that would be a very important part of your duties.

Mr. Ews. I think it is, sir.

Senator SALTONSTALL. And, as one -who comes from an industrial

section, I know that that will be the very question• that we may have

to discuss together at various times, and all I can say now is I hope

you give it your study.

Mr. Ews. Senator, I might say that I am a moderate in my

views, and always have been, and I would be happy to discuss any

matter concerning importation problems with you; and the decision

that Will be reached will be a just one under all the given circumstances.

Senator SALTONSTALL. Your recommendation to the President ,will

be a very important recommendation.

Mr. ELLIs. I am sure that it will be, and it will be given after

study, and it will be given after consultation with the Members of

Congress who are interested in that particular matter.

Senator SALTONSTALL. Now, another serious question that Congress

and the Director, in your position, have had many, many times in the

last 10 or 12 years with the Appropriations Committee, and I hope

that you will give thoughtful consideration to it—I do not ask for an

opinion now—is as to the relative function of the Federal Government

and the State government with relation to civil defense.

Now, should the Federal Government go all out and provide a

great many things or should it be confined to giving advice and

buying some of the fundamentals and Red Cross articles and first

aid or, as one Director recommended, that the Federal Government

dig trenches all along the roads so that people could go underground

immediately there was an attack.

Well, now, that thought has all been discarded, I think; but those

questions, particularly with relation to the money that is requested

by the Congress for civil defense

'

has always been the great issue,

and there has always been a great difference of opinion, and Congress

has been criticized because we have cut down the amount that the

Director has asked for.

Mr. Ews. That is right, sir.

Senator SALTONSTALL. And, as one who is a member of the Appropriations Committee, I hope that you will give that subject your very

thoughtful consideration because it is very fundamental.

Is it not the primary duty of the States to take care of their people

in time of war or is that a problem that is too big, and that the Federal

Government has to go into in a big way?

Mr. Ews. Well, of course, in time of war you would have one

problem; in anticipation of possible conflict you could have another,

And we take into consideration the fact that as of now this is an

organization which pyramids upward from the lowest echelon of parochial subdivisions up to the directorship of this organization which

I am seeking, and I have in mind the factor which you probably are

pressing here, and that is the preservation of States rights, and the

Pr
NOMINATION OF FRANK BURTON ELLIS 9

obligation on the part of the States and the subdivisions to do their

part in this matter, and not put it all in the lap of the National

Government and the Congress; is that right, sir?

Senator SALTONSTALL. Yes. I raise those two questions because I

think there are great differences of opinion on them, and they have

never, either of those two questions, the questions of import and

what is in short supply and the question of the function of the Federal

Government in the civil defense, they have never been satisfactorily

worked out, in my opinion.

Mr. Exams. I find that there is sone diversity of opinion within the

staff organization of OCDM as to whether or not public hearings

should be held on matters which relate to critical supply, and any

recommendation as to curtailment of imports, as against the philosophy that hearings should not be opened, but I would agree very

completely that in any given area where the Congress of the United

States or any Senator or Congressman was interested, that full consideration would be given your views in the matter.

Senator SALTONSTALL. I thank you very much.

Chairman RUSSELL. Senator Symington?

Senator SYMINGTON. No questions.

Chairman RUSSELL. Senator Smith?

Senator SMITH. Yes, Mr. Chairman.

Mr. Ellis, we are glad to have you in Maine, and hope you are

going to spend more time instead of less, in the future.

Mr. ELLis. Thank you, ma'am.

Senator SMITH. Mr. Chairman, I have a question which I would

like to preface by an observation, if I may, at this time.

Chairman RUSSELL. Senator Smith.

Senator SMITH. Mr. Ellis, having spent some time in Maine, will

know what I am talking about, I am sure, although I think your

time up there has been largely during the warm weather rather than

the cold.

Mr. ELLIs. That is correct.

Senator SMITH. Most of the oil users in Maine constitute a captive

market in that they have no other practical means of heating their

homes and surviving the cold winters than by oil heaters.

Thus we are at the mercy of the oil industry, and when they raise

their prices we have no choice but to pay those prices.

I remember well the price gouging that went on in 1956 and 1957

under the excuse of the Suez Canal crisis.

The past administration adopted a protective policy for the oil

industry, and there was no really adequate protection for oil users.

In contrast, the past administration refused to give any real aid or

protection to the textile industry, and so hundreds of textile workers

who lost their jobs because of the refusal of the past administration to

aid the American textile industry with protective measures against the

cutthroat cheap labor textile foreign imports, at the same time, were

forced to submit to a price gouging on oil prices on fuel oil to heat their

homes and to survive, charged by the oil industry, which was receiving

aid and protective measures from the past administration against the

imports of foreign oil.

I have repeatedly protested this discrimination against the people

of Maine, and discrimination in favor of the Texas oilman, and other

oil interests at the expense of the people of Maine.
10 NOMINATION OF FRANK BURTON ELLIS

I with you would inform the committee, Mr. Ellis, very specifically

of your attitude on this matter of oil imports, and what your policy

will be to prevent oil price gouging made possible by restrictions

against the competition of foreign oil imports.

Mr. ELLIs. Senator Smith, you have in one question touched upon

a matter that falls largely under the jurisdiction of the Interior Department, and under the jurisdiction of the Federal Power Commission which, of course, was designed to supervise contracts for the

transmission of natural gas from the Texas-Louisiana area, Oklahoma,

and others, and the applicable rule, as I understand it, gives the

Interior Department almost complete control over the import quotas

in the oilfields.

The only thing under the statute that is reserved to the Office of

OCDM is to exercise a surveillance from the standpoint of national

security over the activities of the Interior Department in the event

that some act on their part would place a critical shortage upon the

oil or gas industry, and only then would I have any authority or power

whatsoever in that field.

Senator SMITH. Mr. Ellis, we do not, of course, have any gas or any

lines, pipelines, into Maine on gas.

Mr. ELLIs. I understand that; I appreciate that.

Senator SMITH. I am talking wholly with respect to oil, and I would

like, as you get into this matter of study which you have said that you

were going to do, I would like very much for you to give me a statement on what your attitude is going to be in the matter when you are

called in for recommendations on storage of oil and the continued restrictions. I think it is very essential as far as the Northeast is

concerned.

Mr. ELLis. I can appreciate it.

You know, I have been over to Dover, and I have seen firsthand the

evacuation of those textile mills there because of prices and other conditions that have existed, and I know so acutely that your problem is

one that warrants very serious consideration and attention.

Senator Smrru. Well, Mr. Ellis, it has been pretty serious.

Mr. aims. I know it has.

Senator SMITH. When we in our part of the country are the people

who get the worst end of this price increase, all because of an administration which has favored and has expressed favoritism with respect

to the oil interests in the Southwest, and I have asked you this question because of your oil interests.

I think it is quite essential that we know if you are going to head up,

and I expect you will, OCDM.

Mr. ELLIs. Thank you ma'am.

Senator SMITH. Thank you very much, Mr. Chairman.

Chairman RUSSELL. Senator Engle?

Senator ENGLE. Mr. Chairman, I have no questions. But I

would like to say that I am very much impressed with Mr. Ellis'

qualifications in his statement here. I would only hope that as time

goes on his very broad geographical interests would see to it that he is

planning to get out there in the Far West, from which Senator Cannon

and I are, and we can probably make some claim on him, as well as

Georgia and Mississippi and Maine.

Mr. ELLis. I would like to make one statement, and that is that

one reason this position offers a very great opportunity for me, and that

is to get away from the sectional aspects of the South and in this
9

NOMINATION OF FRANK BURTON ELLIS 11

important job to show America that we will represent the United

States, the 50 States, and not any one given area.

Senator ENGLE. I am perfectly sure you will, Mr. Ellis and, as I

say, I am very much impressed with your qualifications and the fine

recommendation you have from those who know you.

Mr. ELLIs. Thank you, sir.

Senator ENGLE. Thank you, Mr. Chairman.

Chairman RUSSELL. Senator Case?

Senator CASE. Mr. Chairman, in view of the geographical emphasis

which seems to be given all the comment this morning, I just hope that

Mr. Ellis, as a southerner, will take notice of the fact that there is such

a State as South Dakota and that it was one time a part of Louisiana,

a part of the Louisiana Purchase.

Mr. ELLis. A pretty cheap purchase. [Laughter.]

Senator CASE. Mr. Ellis, in South Dakota new interest is being

taken in civil defense by reason of the fact that the Ellsworth Air

Force Base, which is one of the bases of the Strategic Air Command

is presently being developed as a headquarters or back-up base for one

of the Titan installations, and has recently also been selected for the

siting of a fixed type of Minuteman, so that the matter of civil defense

is one of considerable concern to the people in that area.

Mr. ELLIs. Yes.

Senator CASE. Before, during World War II, when it was a takeoff

place or a training base for B-17's or B-29's, that was one thing.

But when you have a Strategic or SAC base, which not only has

planes but also both Titan and Minutemen, people have a new

concern, and I hope at an early date you will be able to get into our

area and visit with the people there who have responsibilities in this

field 

Mr. aids. I certainly will.

Senator CASE (continuing). And give them such help as they

can to understand the new problem and their place in it.

Mr. Ella's. May I have the privilege of talking with you about it

sometime, Senator?

Senator CASE. I would be happy to do that.

Mr. aids. And I certainly will make it a point to go there in the

very near future.

Senator CASE. Thank you.

Chairman RUSSELL. Senator Cannon?

Senator CANNON. No questions.

Chairman RUSSELL. Senator Bea11?

Senator BEALL. Mr. Chairman, I have no questions, but I would

like to call Mr. Ellis' attention to the fact that, since everybody else

talked about their respective States, a great many of the people

when they come into the Government pick Maryland as their place

to be domiciled while they are here, .and I hope you will have that

good taste and be. domiciled in Maryland. Thank you.

Mr. Ems. I would say I would be very fortunate.

Senator BRIDGES. Mr. Ellis, the questions Mrs. Smith asked you

here are very vital to the New England and the Northeast, and while

my question to you about prejudice was in a rather joking and a.

jovial way, it is a serious question.

Mr. ELLIs. I appreciate that, sir.

Senator BRIDGES. And I want to have you know, as certainly all

members of our section of the country do, that we are absolutely
12 NOMINATION OF FRANK BURTON ELLIS

dependent upon the soil for not only fuel oil and transportation but

for the supply of most of our industries now.

It is essential that we have fair consideration, and that we have

reasonable protection, so I join with her and Senator Saltonstall in

asking you to keep that very much in mind.

Mr. ELms. Thank you, sir. I certainly will.

Senator SMITH. Mr. Chairman, may I make one more observation?

Chairman RUSSELL. Yes, indeed.

Senator SMITH. Mr. Ellis, it has been my understanding—I have

served on a committee with Senator Symington on this matter of

OCDM problems, and it has been my understanding—that the

OCDM does have the responsibility to make findings and recommendations to the Interior Department as to whether the foreign

imports are putting the domestic oil industry in peril. I am quite

sure that is correct; is it not?

Mr. ELLis. Well, we exercise surveillance to the extent of investigating whether imports may be threatening to impair the national

security and advising the President of the facts, but I doubt if we

could interfere with any rule or regulation of the Interior Department.

Senator SMITH. Mr. Chairman, I would like to have this point

cleared up, because I am quite sure that the function, one of the

principal functions, of OCDM is to keep in constant touch with this

and recommend regularly to Interior as to not the critical shortages,

but the shortages or the effect that such imports would have on the

domestic industry.

Mr. ELLIs. Senator Smith, I believe this is understandable that

the Director and the staff of this organization must establish policies

for the preservation of adequate reserves of strategic and critical

materials, and for conservation of these resources.

As such, certainly I believe that we would exercise a power over the

Interior Department, and would be required to make recommendations

to the President in the event that this importation quota was in any

way dislocated or subject to criticism and that we should do something

about it, and I am willing to undertake that task as a part of the obligation that rests upon us.

Chairman RUSSELL. It looks as if it would not be a recommendation

to Interior but to the President.

Mr. ELLis. It would be made to the President.

Chairman RUSSELL. One of the annual reports says:

Section 8 of the Trade Agreements Extension Act continues the authority

formerly in section 7 of the 1955 Extension Act which provides the need for

determining the extent to which imports may be threatening to impair the national

security. The OCDM Director is charged with investigating allegations that

imports of an article are entering the United States in such quantities and under

such circumstances as to threaten to impair the national security and to advise

the President if, as a result of such investigations, he is of the opinion such a

threat to the national security exists.

I do not say that it does not supervise Interior; I say I had no

knowledge of it.

Senator SMITH. Thank you, Mr. Chairman.

Senator LONG. Mr. Chairman, if I might just make one statement

while I am here on that subject, I was one of the authors of that

amendment, and I supported it in the Finance Committee.
NOMINATION OF FRANK BURTON1 ELLIS 13

Senator Douglas made the argument on the floor, and which was

quite correct, that it went to the effect of to just what extent the

injury is and how vital it is to the United States.

Oil certainly has been regarded as one industry that is essential

to the national defense.

When the point comes that there is a sufficient injury to the textile

industry or a sufficient threat to the textile industry so that the

industry might be actually threatened as to its existence, the question

will again come up as to whether this particular provision covers that

industry.

The same thing would be true of the automobile industry; the

same thing is true of a great number of manufacturing and machine

tool industries.

So while oil is one of the industries affected, my guess is that that

particular amendment would substantially affect the majority of

manufacturing industries, and even a majority of extractive industries

in the United States.

Chairman RUSSELL. I did not read the next paragraph from the

Annual Report of the Office of Civil Defense and Mobilization, but

the next paragraph, following the one I just read, said:

Through June 30, 1959, applications for investigation under section 8 had been

filed with respect to the imports of cobalt, tungsten, fluorspar, wool knit gloves,

crude oil and its products, and steam turbine generator sets. In addition the

investigation of imports of dental burrs and heavy electrical power equipment

which had been started under section 7 of the 1955 act were carried over to be

completed under section 8.

So evidently it covers a very wide area.

Senator CASE. Mr. Chairman?

Chairman RUSSELL. Senator Case.

Senator CASE. You mentioned wool among those commodities?

Chairman RUSSELL. No, wool gloves; it says wool knit gloves. It

does not say wool, generally. Apparently that is for the protection

of wool knit gloves in this country.

Senator CASE. Well, does Mr. Ellis know whether or not he would

have any recommendations to make as to the extension of the Wool

Act?

Mr. ELLIs. Well, sir, on specifics—and that is the reason why I am

just a little hesitant to deal with them—I have not had the time to

make a comprehensive investigation of that subject.

Senator CASE. The Wool Act is up for extension, and I believe

Senators McGee and Hickey, of Wyoming, and I know Senator Mundt

and I have joined in the cosponsorship of a bill for the extension of the

Wool Act, which presently is designed to insure the production of a

minimum amount of wool as a national—or something that ought to

be continued as a matter of national defense, that legislation has been

introduced.

During the last war, wool was critical enough so that we went into

the world market to buy wool in order to keep it from falling into the

hands of the enemy.

Mr. aids. Yes.

Senator CASE. Growing out of that situation, and • OtEpt4

condition of wool in this country, the Wool Act was ted in or

to insure a minimum production. That will be up f e,?xtothitAiVthi

year.

1_0
14 NOMINATION OF FRANK BURTON ELLIS

If it should come up for extension this year or if, in connection with

its coming up for its extension, you were called upon to make a recommendation, would you recommend that it be continued?

Mr. ELLIs. I would like to say that I would do this, I would come

over and talk to you, sir, and we would go into the matter, and I do

not think you would want me now, without all of the facts before me,

to make an affirmative statement as to what I would do.

Senator CASE. If you have not studied the matter I would not want

you to make a conclusion on a matter which you had not studied.

Mr. ELLis. No, sir; I have not.

Senator CASE. But if it were to appear that the extension of the

Wool Act was consistent with the interests of national defense and

proper mobilization ability, would you favor it?

Mr. ELLis. I would unqualifiedly recommend it to the President

that it be extended.

Senator CASE. Have you had an opportunity to consider the

responsibilities you will have in connection with the strategic materials or minerals which are procured by the General Services

Administration? I have reference to such things as barium, mica,

tungsten, and things of that sort.

Mr. ELLis. I know of that, but I have not made the study; no, sir.

Senator CASE. Are you in sympathy with the idea of maintaining

the strategic stockpile at a level consistent with the needs of national

defense?

Mr. ELLIs. Yes, sir; and we now have something in the area of

$7 billion of strategic materials in the stockpile.

Senator CASE. There again we are approaching the time when

some of those particular items, the level set up in the existing act,

will soon be reached, and I assume that all of those will be up for

review, and when they do come up for review, I hope that again

you will find a way to my door and let us talk this matter over.

Mr. ELLIs. Yes, sir.

Senator CASE. Because the maintenance of a proper level of

stockpiles in these strategic minerals is, in my judgment, quite

essential to the national defense.

Mr. ELLIs. Right, sir. I will cooperate entirely with the Congress,

and I am at your disposal at any time.

Senator SMITH. For the record only, I would like to say that

when, Mr. Chairman, as you will recall, Gordon Gray was Director

of OCDM, he was ordered by the President to make a study with

regard to the oil imports, and that is what led to the order by the

President to limit the export of oil.

Senator LONG. The import.

Senator SMITH. Yes, import.

Chairman RUSSELL. This item that I have read about where

requests have been made for investigations by parties in interest,

was not complete because in the last year there are applications

which were made for investigations against the imports of surplus

military rifles, transistors, and related products.

As I understand it, the wool people, the producers, as such, or

the wool manufacturers, as such, have not even filed an application

with the OCDM, but only the manufacturers of wool knit gloves.

Senator LONG. The wool products, the wool producers, have a

Wool Act, Mr. Chairman, which would press it to maintain such a

level.
•

NOMINATION OF FRANK BURTON ELLIS - 15

Chairman RUSSELL. The wool producers have not made an application, just the people engaged in knitting wool gloves.

Senator SALTONSTALL. Mr. Chairman, may I make this remark,

following what Senator Smith and Senator Bridges have said. Our

public utility, the Boston Edison Co., which supplies all of Metropolitan Boston, is having great difficulty at the present time in

getting residual oil for its steam plant, and I had thought that came

within the Department of the Interior, but it concerns you also,

your office. I hope you will consider that, because it provides all

the power for the Boston metropolitan area, some 2 million people.

Mr. Ews. I would see right away that will be a critical problem

that would warrant our immediate investigation; I would believe that

would be the case.

Chairman RUSSELL. If there are no further questions 

Senator SYMINGTON. Mr. Chairman, I would like to ask a couple

of questions.

Chairman RUSSELL. All right, sir.

Senator SYMINGTON. Mr. Ellis, I think you referred to the strategic

stockpile which is of interest to Senator Smith and Senator Thurmond

and me as members of a subcommittee of this committee. Also, the

question of wool was brought up.

First, I would like to point out, if I may, that while you hear a,

great deal of criticism of the agricultural stockpile, the strategic stockpile in metals and minerals and machine tools, is billions of dollars

more in value than the agricultural stockpile.

Mr. Ews. Yes, sir.

Senator SYMINGTON. Will you investigate for this committee why it

is that even though we have reduced the stockpile objectives in metals

and minerals, we are already overstocked. Will you investigate and

report to this committee why it is that we are continuing to buy

metals and minerals that we already have too much of for the stockpile?

Mr. Ews. Yes, sir; I certainly will. I think it is a very good point.

Senator SYMINGTON. Thank you, sir.

Mr. Ews. And will inquire into it immediately.

Senator SYMINGTON. Now, in noting some of the facets of this very

broad and responsible position that you have, I also note that the

civil defense problem is one of your responsibilities.

Mr. Ews. Yes, sir.

Senator SYMINGTON. I am interested in the question of nuclear arms

control and concerned about any agreement on a unilateral basis

such as the situation existing in test cessation. It seems to me that

if we enter into an agreement not to use atomic weapons, it might

turn into an open-end agreement and the missiles might then be used

by a potential enemy to deliver biological or chemical warfare weapons

with high or low bursts. In classified hearings, we found that the

Russian people were being much more thoroughly trained for civil

defense than were the American people. We were shown illustrations,

pictures, charts, and so forth, to prove the point.

Will you make an analysis for this committee of the efforts that

are being made by the Russians to acquaint their people with where

to go and what to do in case of nuclear attack?

Mr. Ews. Yes, sir.
16 NOMINATION OF FRANK BURTON ELLIS

Senator SYMINGTON. This should include a comparison with the

efforts that are being made by this Government to acquaint its people

with the same problem; and I would rather broaden it to cover not

just under nuclear attack but civil defense under any form of attack?

Mr. ELLIs. We would understand.

Senator SYMINGTON. SO it would also include attacks by chemical

or biological warfare.

Mr. ELLIs. Yes, sir; I certainly will.

I did understand this morning that there is an abundance of classified material on this subject which will be made available when we

make that study, sir, and report back to the committee.

Senator SYMINGTON. Thank you, Mr. Chairman. I have no further

questions.

Chairman RUSSELL. If there are no further questions, we thank

you, Mr. Ellis.

Mr. ELLTs. Thank you so much, sir.

(Whereupon, the committee proceeded with the consideration of

other nominations.)