CONGRESSIONAL RECORD - HOUSE

H.R. 12383. An act to amend the Federal

Employees' Compensation Act to make benefits more realistic in terms of present wage

rates, and for other purposes;

H.R. 12458. An act to increase the amount

authorized to be appropriated for the work

of the President's Committee on Employment

of the Physically Handicapped;

H.R. 12574. An act to amend the Longshoremen's and Harbor Workers' Compensation Act, so as to provide that an injured employee shall have the right to select his own

physician, and for other purposes;

H.R. 12580. An act to extend and improve

coverage under the Federal old-age, survivors, and disability insurance system and

to remove hardships and inequities, improve

the financing of the trust funds, and provide

disability benefits to additional individuals

under such system; to provide grants to

States for medical care for aged individuals

of low income; to amend the public assistance and maternal and child welfare provisions of the Social Security Act; to improve

the unemployment compensation provisions

of such act; and for other purposes;

H.R. 12699. An act to cancel a deed of

trust to the United States from the predecessor in name of Gallaudet College and any

evidences of indebtedness related to the same

transaction, to quiet the college's title to

property belonging to it, and for other purposes;

H.R. 12993. An act to amend the District

of Columbia Teachers' Salary Act of 1955, as

amended;

H.R. 13066. An act to amend section 4(a)

of the Securities Exchange Act of 1934, as

amended;

H.J. Res. 311. Joint resolution authorizing

the erection of a statue of Taras Shevchenko

on public grounds in the District of Columbia; and

H.J. Res. 704. Joint resolution to remove

copyright restrictions upon the musical composition "Pledge of Allegiance to the Flag,"

and for other purposes.

On September 14, 1960:

H.R.816. An act to convey certain lands

in Oklahoma to the Cheyenne and Arapaho

Indians, and for other purposes; I

H.R. 1526. An act for the relief of F. P.

Tower, Lillie B. Lewis, the estate of Manuel

Branco, John Santos Carinhas, Joaquin

Gomez Carinhas, and Manuel Jesus Carinhas;

H.R.3536. An act for the relief of Guadalupe Villarreal, Jr.;

H.R. 4306. An act to provide education and

training for the children of veterans dying

of a disability incurred after January 31,

1955, and before the end of compulsory military service and directly caused by military,

naval, or air service, and for other purposes;

H.R. 7810. An act to credit periods of internment during World War II to certain

Federal employees of Japanese ancestry for

purposes of the Civil Service Retirement Act

and the Annual and Sick Leave Act of 1951;

H.R. 8156. An act for the relief of Jack

Kent Cooke;

H.R. 8166. An act for the relief of the

Crum-McKinnon Building Co., Billings,

Mont.;

H.R. 9715. An act for the relief of Otis

Drinkard;

H.R. 10087. An act to amend the Internal

Revenue Code of 1954 to permit taxpayers

to elect an overall limitation on the foreign

tax credit;

H.R. 10586. An act to enable the Oregon

Short Line Railroad Co. to convey title to

certain lands in Idaho to the Pocatello First

Corporation of the Church of Jesus Christ

of Latter-day Saints;

HR. 10960. An act to amend section 5701

of the Internal Revenue Code of 1954 with

respect to the excise tax upon cigars, and

for other purposes;

H.R. 11322. An act for the relief of Col.

Joseph A. Nichols;

H.R. 11380. An act for the relief of Mr. Joe

J. Farmer;

H.R. 12536. An act relating to the treatment of charges for local advertising for

purposes of determining the manufacturers

sale price;

H.R. 12759. An act to amend title V of the

Agricultural Act of 1949, as amended, and

for other purposes; and

H.J. Res. 784. Joint resolution amending

the act of July 14, 1960, to extend the time

within which the United States Constitution

One Hundred and Seventy-fifth Anniversary

Commission shall report to Congress and including certain amendments relating to

housing.

On September 15, 1960:

H.R. 2565. An act to promote effectual

planning, development, maintenance, and

coordination of wildlife, fish, and game conservation and rehabilitation in military reservations;

H.R. 10341. An act to amend the Public

Health Service Act to authorize grants-in-aid

to universities, hospitals, laboratories, and

other public or nonprofit institutions to

strengthen their programs of research and

research training in sciences related to

health;

H.R. 12659. An act to suspend for a temporary period the import duty on heptanoic

acid, and for other purposes;

H.J. Res. 402. Joint resolution granting the

consent and approval of Congress for the

States of Virginia and Maryland and the

District of Columbia to enter into a compact

related to the regulation of mass transit in

the Washington, District of Columbia metropolitan area, and for other purposes; and

H.J. Res. 723. Joint resolution extending an

invitation to the Federation Aeronautique

Internationale to hold the 1962 world sport

parachuting championships at Orange, Mass.

On September 16, 1960:

H.R. 10841. An act to amend the Tariff

Act of 1930 to place bamboo pipe stems on

the free list.

HOUSE BILLS AND JOINT RESOLUTIONS DISAPPROVED AFTER SINE

DIE ADJOURNMENT

The message further announced that

the President had disapproved of the following bills and joint resolutions of the

House of the following titles:

STABILIZE MINING OF LEAD AND ZINC

H.R. 8860. I have withheld approval of

HR. 8860, "to stabilize the mining of lead

and zinc by small domestic producers on

public, Indian, and other lands, and for

other purposes."

H.R. 8860 authorizes lead and zinc

subsidies based on the difference between

market prices and a price of 17 cents per

pound for lead and 141/2 cents per pound

for zinc. The subsidies would be paid on

the output of mines producing not more

than 2,000 tons annually of each commodity.

The problems of our lead and zinc

miners have caused me concern for

some time. To help solve these problems, the administration has taken administrative actions and has twice proposed legislation which the Congress did

not enact. Thereafter, in October of

1958, I reduced imports by imposing

quantitative controls.

Now the Congress has enacted H.R.

8860, but unfortunately it would harm

rather than help the lead-zinc industry. It would negate the progress of

recent years, increase the problems of

lead-zinc producers, subject the market

to instability, and burden our taxpayers

with unsound subsidies. Apart from the

fact that the appropriations authorized

by the bill would be completely inadequate to pay the proposed subsidieswith the result that the bill's intended

.beneficiaries could be misled into production for which they would not receive

the promised subsidies-the bill has

these fatal defects:

First, H.R. 8860 would intensify the

industry's problems by generating substantial additional production at the expense of other miners' jobs. Its subsidies would induce the opening for fulltime production of many mines which

are not now operating, some of which

have operated only intermittently in the

past. The substantial additions to supply would depress lead and zinc prices

and thus cause cutbacks and layoffs of

mineworkers in the unsubsidized mines.

Second, the subsidized production induced by this bill would complicate, even

frustrate, programs now in effect that

are gradually bringing the production

and demand of these commodities into

balance. As a result of existing import

controls and continuing international

cooperation, the volume of imports is at

the lowest levels, and constitutes the

smallest percentage of total lead-zinc in

supply, in nearly a decade. This has

made it possible during 1959 for domestic lead and zinc producers to reduce

excess stocks and to increase mine output. While consumption of these two

metals has been at disappointing levels,

the domestic industry should, with increased demand, again move rapidly forward to normal and stable operation at

reasonable prices. The depressed prices

that would result from the subsidy program would represent a backward step.

A lasting solution can best be achieved

through a worldwide balance of production and consumption, and that is the

object of past and current international

consultations.

Third, approval of H.R. 8860 would

generate demands for equal treatment

and similar subsidies from other producers of lead and zinc as well as producers

of many other minerals. Such a system

of subsidies would make a substantial

portion of domestic mining totally dependent on Federal appropriations and

would thereby lessen incentives for the

technological improvement vital to the

continued health of American mining.

For these reasons, I am compelled to

withhold my approval of H.R. 8860.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 2, 1960.

TARIFF-MARKING OF IMPORTED ARTICLES AND

CONTAINERS

H.R. 5054. I am withholding my approval from H.R. 5054, "to amend the

Tariff Act of 1930 with respect to the

marking of imported articles and containers."

The bill would provide that new packaging for articles imported in containers

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CONGRESSIONAL RECORD - HOUSE September 1

required by present law to be marked

with the name of the country of origin

must be similarly marked by the repackager, whether the importer, distributor,

retailer, or other handler of the merchandise. Goods in packages not so

marked would be subject to seizure and

forfeiture. The requirement could be

waived only where found to necessitate

such substantial changes in customary

trade practices as to cause undue hardship.

H.R. 5054 runs counter to one of our

major foreign policy objectives-the reduction of unnecessary barriers and

hindrances to trade. The burdens the

bill would impose are unnecessary because the Federal Trade Commission requires the disclosure of the foreign origin

of repackaged imported articles when it

is in the public interest to do so.

The United States and other principal

trading nations of the world have recognized that burdensome marking requirements can be a hindrance to trade and

have agreed to the principle that such

hindrances should be reduced to a minimum. H.R. 5054 might well result in

successive domestic handlers requiring

written assurances of proper marking in

order to avoid the severe penalty of

seizure and forfeiture. The cost and the

complications involved in such cumbersome paperwork would tend to discourage such imports. Moreover, this measure could prove ultimately damaging to

our export-expansion efforts, for needlessly restrictive action on our part

could readily lead to similarly restrictive

action by other countries against American goods.

In addition, the bill would unnecessarily extend the Bureau of Customs into

new areas by requiring the Bureau to follow goods after they have entered the

stream of domestic commerce and to act

against handlers of merchandise who are

not importers. The Bureau would be required to determine the nature of customary trade practices and the possibility of undue hardship in a field outside its normal competence. Aside from

the unnecessary additional expense,

these new responsibilities would be most

awkward for the Bureau to administer.

For these reasons I am withholding

my approval of H.R. 5054.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 5, 1960.

H.R. 6767, RAYMOND BAURKOT

I have withheld my approval from

H.R. 6767, for the relief of Raymond

Baurkot.

This bill would permit the filing of a

tax refund claim that was in fact filed

after the deadline date set by law.

Public Law 85-859 provided for the

refund of internal revenue taxes paid on

certain liquors lost as the result of a

major disaster occurring prior to the

date of enactment, September 2, 1958.

It required that claims be filed on or

before March 2, 1959. The claimant

filed on March 16, 1959, for a refund

of $382.10 paid in taxes on beer destroyed in a 1955 flood. He asserted

that he had telephoned the branch office

of the district director's office in Easton,

Pa., on February 26, 1959, and was informed by an unidentified person that

he had a "couple of months" in which

to file.

The Easton branch office has no record of any such request for information

from Mr. Baurkot. That office, moreover, does not itself handle alcohol-tax

problems. Its standard procedure is to

refer such inquiries to the assistant regional commissioner's office in Philadelphia which has general supervision

over such matters.

Information concerning Public Law

85-859 and its filing requirements were

widely disseminated to the liquor industry by the Internal Revenue Service.

It appears that the claimant received

the industry circular published by the

Service but thereafter misplaced it.

This circular set forth the March 2

deadline and specifically provided that

inquiries regarding claims should be addressed to the assistant regional commissioner's office.

Under these circumstances I am unable to approve this bill. The statutory

period of limitations, which the Congress has included in the revenue system as a matter of sound policy, is essential to the achievement of finality in tax

administration. Efficient administration of the tax laws is dependent upon

taxpayers meeting statutory deadlines.

To grant special relief in this case would

be to discriminate against other similarly situated taxpayers and to create an

undesirable precedent.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 8, 1960.

H.R. 7242, BANKRUPTCY ACT-STATUTORY LIENS

I have withheld my approval of H.R.

7242, to amend sections 1, 57j, 64a(5),

67b, 67c, and 70c of the Bankruptcy Act,

and for other further purposes.

I recognize the need for legislation to

solve certain problems regarding the priority of liens in bankruptcy, but this bill

is not a satisfactory solution. It would

unduly and unnecessarily prejudice the

sound administration of Federal tax

laws. In some cases, for example, mortgages would be given an unwarranted

priority over Federal tax liens even

though the mortgage is recorded after

the filing of the tax lien.

This and other defects of the bill can,

I believe, be corrected without compromising its primary and commendable

purpose. The Treasury Department and

the proponents of H.R. 7242 have been

working toward solution of recognized

problems in present law. Further cooperative efforts should produce satisfactory legislation that would avoid the

undesirable effects of this bill.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 8, 1960.

H.R. 1074, ERIC AND IDA MAE HJERPE

I am withholding my approval from

H.R. 2074, for the relief of Eric and Ida

Mae Hjerpe.

In their income tax return for 1952

these taxpayers reported as income certain disability payments received by Mr.

Hjerpe from his employer. During 1952,

however, the Court of Appeals for the

Seventh Circuit had held such disability

payments excludable from gross income,

even though the Internal Revenue Service had ruled to the contrary, and in

1957 the U.S. Supreme Court affirmed.

The taxpayers' claim for refund, based

upon the excludability of the disability

pay received by Mr. Hjerpe, was filed almost 4 years after the 1952 return had

been filed and approximately 101/2

months after the expiration of the applicable 3-year statutory period of limitations. The claim was accordingly disallowed.

The last Congress enacted legislation

to grant general relief, on a nondiscriminatory basis, to taxpayers who had paid

income tax on disability pay excludable

from gross income under the Supreme

Court decision. Relief was not provided,

however, for taxpayers who, as in the

case at hand, had not attempted to protect their rights by filing timely claims

for refund.

H.R. 2074 would direct the payment to

Mr. and Mrs. Hjerpe of $1,096.48 as a

refund notwithstanding their late filing

and failure to qualify under the general relief legislation. The bill is similar

to several others from which I have withheld my approval in the past.

The statutory period of limitations,

which the Congress has included in the

revenue system as a matter of sound

policy, is essential in order to achieve

finality in tax administration. A substantial number of taxpayers paid income tax on disability payments received by them and failed to file timely

claims for refund. To grant special relief in this case, where a refund was not

claimed within the time prescribed by

law, would constitute a discrimination

against other similarly situated taxpayers and would create an undesirable

precedent.

Under the circumstances, therefore, I

am compelled to withhold my approval

of the bill.

DWIGHT D. EISENHOWER.

THE WHITE HOUSE, September 14, 1960.

H.R. 7618, H. P. LAMBERT CO., INC., AND

SOUTHEASTERN DRILLING CORP.

I am withholding my approval from

H.R. 7618, a bill for the relief of H. P.

Lambert Co., Inc., and Southeastern

Drilling Corp.

The bill would waive the applicable

statute of limitations and permit a

claim for refund of duty paid on certain

nondutiable equipment imported into

the United States.

The claimants requested that certain

oilfield equipment be entered under provisions of the tariff act affording dutyfree status to property originally manufactured in the United States. The

equipment was admitted duty-free after

the Lambert Co., the brokerage firm in

the case, had posted a bond to assure

production of the documentation required to establish U.S. origin. At the

request of the brokerage firm, the time

covered by the bond was extended on

several occasions. At the end of 2 years,

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