CONGRESSIONAL RECORD - SENATE

Finally, the bill requires the Court of

Claims to use a specific method of computing invested capital-assuming the

taxpayer has overpaid his taxes-to be

based upon an amount arrived at in

settling the controversy before the Board

of Tax Appeals for the years 1918

through 1920. The year 1917 was not

involved in that settlement, nor, as the

Court of Claims indicated in its 1939

decision, "does the action taken with respect to subsequent years constitute conclusive proof as to 1917." Even assuming the desirability of granting jurisdiction to the Court of Claims for this year,

it does not seem desirable to preclude

the court from determining the correct

tax liability for the year.

Since the proposed legislation would

be discriminatory and would single out a

particular taxpayer for relief from the

statute of limitations without adequate

reason therefor, and since it would preclude the Court of Claims from determining the true tax liability, I feel constrained to withhold my approval of

S. 3304.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 1, 1954.

On September 2, 1954:

CONTRACTS BETWEEN GOVERNMENT AND COMMON

CARRIERS

S. 906. I have withheld my approval of

S. 906, to establish the finality of con- tracts between the Government and

common carriers of passengers and

freight subject to the Interstate Commerce Act.

This legislation provides that rates

cstablished under the provisions of section 22 of the Interstate Commerce Act,

when accepted or agreed to by the Secretary of Defense, the Secretary of Agriculture, or the Administrator of General

Services, or by any official or employee

to whom the authority is delegated by

them, shall be conclusively presumed to

be just, reasonable, and otherwise lawful, and shall not be subject to attack,

or reparation, after 180 days, or 2 years

in the case of contracts entered into during a national emergency declared by

Congress, after the date of acceptance or agreement upon any grounds except actual fraud or deceit, or clerical mistake.

The determination of what is a just,

reasonable, or otherwise lawful rate on

interstate shipments is now vested in

the Interstate Commerce Commission.

All shippers, including the Government,

are bound as a matter of contract to

pay the agreed rate, whether it be in

the form of a tariff rate or a section 22

quotation. This contractual obligation

is subject, however, to an overriding

right of the shipper to appeal to the

Interstate Commerce Commission to determine whether the agreed rate is lawful. The statute of limitations for such

action in the present law is 2 years. This

act would require the Government to determine the lawfulness of the rate, with

finality, and through agencies other than

the Interstate Commerce Commission,

within 180 days at ordinary times, or

within 2 years during a national emergency declared by Congress. Whereas

the commercial shipper could contest the

rate while It Is in effect, the Government

would apparently be required to cancel or refuse the rate and pay higher charges

during any test of the lawfulness of the

rate.

I am therefore unable to approve this

legislation, which relegates the Government in its role as a user of transportation services to a position inferior to that

of the general shipping public and re- stricts its access to the Interstate Com- merce Commission, the body of experts

authorized by Congress to determine the

reasonableness of rates.

I see no reason why the Government

should not be subject to the same limitations on retroactive review of its

freight charges as the commercial shipper. That result could be accomplished

equitably by an amendment to section

16 (3) of the Interstate Commerce Act

specifying that the Government shall be

subject to the 2-year limitation presently applicable to commercial shippers. The Government would then be on exactly the same basis under that sec- tion as all other shippers, and existing

inequities in the present ratemaking relationships between the Government

and the common carriers would be re- moved. I recommend that such legislation be enacted at the next session of

the Congress.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 2, 1954.

T. C. ELLIOTT

S. 1687. I am withholding my approval

from S. 1687, "For the relief of T. C.

Elliott."

The purpose of this enactment is to

pay to T. C. Elliott, of Daytona Beach,

Fla., the sum of $15,000 as compensation

for his services in preparing and furnishing certain information to Members of

Congress. The bill provides that payment authorized shall be free of Federal

income tax.

This bill is faulty for two reasons. First, the exemption of the award from

all Federal income taxes is totally un- warranted. Second, it is stated in the

enactment that the payment is "compensation for services rendered." The

record demonstrates that the sum to be

paid is not true compensation, but a monetary award for special services..

The claimant, T. C. Elliott, was an em- ployee of the Federal Government from

November 1, 1900, until his retirement,

January 31, 1944. During this period of

employment Mr. Elliott was an auditor in

the Navy Department, the Treasury Department, and the General Accounting

Office. In such a position he became con- versant with freight rates and transportation problems and furnished data on these subjects on many occasions to

individual Members of Congress and to

various committees of the Congress.

It is conceded that MA'. Elliott, in addition to performing h2s regular duties,

rendered valuable service to Members of

Congress. His efforts undoubtedly con- tributed to a saving to the Government of

large sums of money, but the record is

also clear that these services were ren- dered by Mr. Elliott voluntarily, after

office hours, on his own time, or on his

leave time, and were completely aside

from his official duties or the requirements of his office. Mr. Elliott, like

thousands of other devoted Government

employees, is to be commended for the

unselfish manner in which he made his

knowledge of freight rates available to

others.

Each year there accrue to the Government the beneficial results of extraordinary services rendered by interested

private citizens and organizations who

volunteer much useful information and

experience to the Congress, to its individual Members, and to the executive

branch agencies as well. I do not believe that claims for compensation for

such volunteer services should be encour- aged. Approval of legislation for that

purpose would ratify an irregular and

unformalized employment relation, and

would also place the Congress and the

executive agencies in an unacceptable

and unbusinesslike position. If such

services are to be on a regular or recur- ring or even a sporadic basis, formal ar- rangements for employment should be

made. There are numerous alternatives.

A regular full-time or part-time appointment, appointment as a consultant

at a per diem or an hourly rate, and per- formance of work by contract are the

most common. If the service is per- formed outside of a formal employment

relationship, whatever recognition may

be given to it should not be considered

compensation.

I do not want my action in withholding approval of this bill to be construed as derogation of Mr. Elliott's services or as criticism of recognition by the Congress of special services afforded to its

Members. While I cannot approve the

bill in its present form for the reasons given above, I shall be glad to approve a bill which is by its terms an extraordinary monetary award for special serv- ice and which removes the tax-free

status of the award.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 2, 1954.

FOREIGN-PRODUCED TROUT

S. 2033. I am withholding my approval

from S. 2033, relating to the labeling of

packages containing foreign-produced

trout sold in the United States, and re- quiring certain information to appear in

public eating places serving such trout.

The bill would amend the Federal

Food, Drug, and Cosmetic Act by making

its criminal sanctions-imprisonment up

to 3 years or a fine up to $1,000, or both-and certain civil sanctions appli- cable to the sale, offering for sale, possessing for sale, or serving of foreign- produced trout in violation of special

provisions which the bill would add to

the act with respect to such trout, ex- cept a certain species of lake trout

largely imported from Canada. (These

special requirements would be in addition to. any of the other requirements

of the act and to any applicable requirements of State law.)

These special requirements-none of

them applicable to domestic trout-are as follows:

1. Foreign-produced trout would have

to be packaged and, if the package is

1954 15843
CONGRESSIONAL RECORD - SENATE November 8

broken while held for sale, each unit for

sale consisting of one or more trout would

have to be in a separate package.

2. Each such package would have to be

clearly and conspicuously stamped or

labeled, in type or lettering of specified

size, with the word "trout" preceded by

the name of the country in which such

.trout was produced.-

3. It would be unlawful for any restaurant or other public eating place to

possess, in a form ready for serving, any

foreign-produced trout unless the restaurant or eating place displayed prominently and conspicuously a notice stating that ------------ trout is served in

this restaurant," with the name of the

country of origin inserted in the blank

space.

According to the committee reports,

the bill has the three-fold purpose of (1)

protecting the public and consumer

against deceptive and unfair acts and

practices by requiring truthful disclosure of the origin of the trout being sold,

(2) protecting our domestic trout producers against unfair competition from

foreign producers of trout, and (3) protecting our source of supply for stocking

the streams of our Nation with game

trout.

It is claimed that in recent years certain merchants and restaurants have indulged In the practice of serving imported trout to restaurant patrons and

other consumers as Rocky Mountain

trout, Rocky Mountain rainbow trout, or

under other descriptive names which,

to the consumer, indicate their domestic

origin. If domestic trout producers are deprived of this market, it is feared that

they may be unable to continue their

other important function of supplying

eggs and fingerlings for restocking our

streams of the sportsman-angler.

Fraud and deception in the marketing

or serving of food or any other product

cannot, of course, be condoned. I am convinced, however, that to the extent

that the provisions and sanctions of the

bill properly involve Federal functions,

they are unnecessary to prevent fraud

and deception. The Tariff Act and the

Federal Food, Drug, and Cosmetic Act

already provide for necessary labeling of

imported products. Furthermore, the

provisions of S. 2033 are discriminatory

and oppressive against foreign trade, and

to a very substantial extent they would

invade a field of regulation and enforcement which I believe should be left to

the States and localities. Finally, the

costs of enforcement would be out of all

proportion to funds available to the Food

and Drug Administration for vital functions affecting the health of the American people.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 2, 1954.

MESSAGES FROM THE PRESIDENT

Messages in writing from the President

of the United States submitting nominations were communicated to the Senate

by Mr. Miller, one of his secretaries.

EXECUTIVE MESSAGES REFERRED

As in executive session,

The VICE PRESIDENT laid before the

Eenate messages from the President of

the United States submitting sundry

nominations, which were referred to the

appropriate committees.

(For nominations this day received,

see the end of Senate proceedings.)

LEAVES OF ABSENCE

Mr. JOHNSON of Texas. Mr. President, I ask unanimous consent that the

junior Senator from Massachusetts [Mr.

KENNEDY] be excused from attendance

on the sessions of the Senate for an indefinite period because of illness.

The VICE PRESIDENT. Without objection, it is so ordered.

Mr. JOHNSON of Texas. I ask unanimous consent that the Senators from

North Carolina [Mr. ERVIN and Mr. LENNON] be excused from attendance on the

sessions of the Senate today and tomorrow in order that they may attend the

funeral of former Senator William B.

Umstead, late Governor of North Carolina.

The VICE PRESIDENT. Without objection, it is so ordered.

JOHN MARSHALL BICENTENNIAL

MONTH COMMISSION

The PRESIDENT pro tempore, under

authority of the order of the Senate of

August 20, 1954, appointed, during the

adjournment of the Senate, the Senator

from Pennsylvania [Mr. MARTIN], the

Senator from Maryland [Mr. BUTLER],

the senior Senator from Virginia [Mr.

BYRD], and the junior Senator from Virginia [Mr. ROBERTSON] as members on

the part of the Senate of the John Marshall Bicentennial Month Commission,

established by the act of August 13, 1954.

CALL OF THE ROLL

Mr. KNOWLAND. Mr. President, I

suggest the absence of a quorum.

The VICE PRESIDENT. The Secretary will call the roll.

The legislative clerk (Edward E. Mansur, Jr.) called the roll, and the following

Senators answered to their names:

Anderson

Barrett

Beall

Bennett

Bowring

Bridges

Burke

Bush

Butler

Byrd

Capehart

Carlson

Case

Chavez

Clements

Crippa

Dirksen

Douglas

Duff

Dworshak

Ellender

Ferguson

Flanders

Frear

Fulbright

George

Gillette

Goldwater

Gore

Green

Hayden

Hendrickson

Hickenlooper

Hill

Holland

Humphrey

Ives

Jackson

Johnson, Colo.

Johnson, Tex.

Johnston, S. C.

Kilgore

Knowland

Kuchel

Langer

Lehman

Malone

Mansfield

Martin

McCarthy

McClellan

Millikin

Monroney

Morse

M.undt

Murray

Neely

Payne

Potter

Purtell

Reynolds

Robertson

Russell

Schoeppel

Smathers

Smith, Maine

Smith, N. J.

Sparkman

Stennis

Symington

Thye

Watkins

Welker

Wiley

Williams

Young

Mr. KNOWLAND. I announce that

the Senator from Vermont [Mr. AIKEN]

and the Senator from Massachusetts

[Mr. SALTONSTALL] are absent on official

business. The Senator from Kentucky

[Mr. COOPER], the Senator from Oregon

[Mr. CORDON], the Senator from Ohio

[Mr. BRICKER], the Senator from Indiana [Mr. JENNER], and the Senator

from New Hampshire [Mr. UPTON] are

necessarily absent.

Mr. CLEMENTS. I announce that

the Senator from Texas [Mr. DANIEL],

the Senator from Mississippi [Mr. EASTLAND], the Senator from Missouri [Mr.

HENNINGS], the Senator from Tennessee

[Mr. KFAUVER], the Senator from Oklahoma [Mr. KERR], the Senator from

Louisiana [Mr. LONG], the Senator from

Washington [Mr. MAGNUSON], and the

Senator from Rhode Island [Mr. PASTORE] are absent on official business.

The Senators from North Carolina

[Mr. ERVIN and Mr. LENNON] are absent

by leave of the Senate, attending the

funeral of the former Senator and the

late Governor of North Carolina, Hon.

William B. Umstead.

The Senator from Massachusetts [Mr.

KENNEDY] is absent by leave of the Senate because of illness.

The VICE PRESIDENT. A quorum is

present.

DEATH OF SENATOR MAYBANK, OF

SOUTH CAROLINA

Mr. JOHNSTON of South Carolina.

Mr. President, it is with profound sorrow that I announce the death of my

colleague, the late Senator BURNET R.

MAYBANK.

I offer the resolution, which I send to

the desk, and request its immediate consideration.

The VICE PRESIDENT. The resolution will be read.

The resolution (S. Res. 323) was read,

considered by unanimous consent, and

unanimously agreed to, as follows:

Resolved, That the Senate has heard with

profound sorrow and deep regret the an- nouncement of the death of Hon. BURNET R.

MAYBANK, late a Senator from the State of

South Carolina.

Resolved, That the Secretary communlcate these resolutions to the House of Representatives when it next assembles, and

transmit a copy thereof to the family of

the deceased.

DEATH OF SENATOR McCARRAN, OF

NEVADA

Mr. MALONE. Mr. President, I an- nounce the death of my colleague, the

,senior Senator from Nevada [Mr. McCARRAN]

I offer the resolution, which I send to

the desk, and request its immediate consideration.

The VICE PRESIDENT. The resolution will be read.

The resolution (S. Res. 324) was read,

considered by unanimous consent, and

unanimously agreed to, as follows:

Resolved, That the Senate has heard with

profound sorrow and deep regret the an- nouncement of the death of Hon. PAT MC-

*CARRAN, late a Senator from the State of

Nevada.

Resolved, That the Secretary communicate

these resolutions to the House of Representatives when it next assembles, and transmit a copy thereof to the family of the deceased.

SENATOR FROM SOUTH CAROLINA

Mr. JOHNSTON of South Carolina.

Mr. President, I send to the desk the

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