A3326 appeared in the Newark Evening News of Sunday, April 30, 1950: ASKED AND OFFERED Mayors of seven of New Jersey’s largest cities, including Newark’s Ralph Villani, have appealed to the Senate Banking and Cur- rency Committee to release a bill which would extend Federal rent controls beyond June 30, which is the date the present law dies. Mayor Villani said housing conditions in Newark are acute. Representative ADDONIZIO agrees and says the shortage in his district, New Jersey’s eleventh, is most serious for tenants who cannot afford to pay more than $75 a month. He’s for continued rent ceilings until con- trols can be lifted without widespread hardship. Real estate spokesmen maintain there is plenty of rental housing. Let’s take a look at the classified columns of the Newark News, an accurate mirror of real estate con- Gitions in New Jersey. Take Wednesday night. ‘There were 58 advertisements of va- cancies in Newark and vicinity. Of these, 49 offered only one apartment each. In those which advertised more than one, the offer- ings included two to 41%4 rooms at $57 to $105, 2 and 34% from $75, 2 rooms at $70, 3 rooms at $88 and $92. In those which adver- tised only 1 apartment, rents included $100 for 4 rooms, $92 for 314, $125 for 4, $150 for 5, $100 for 5, $90 for 4. Now we come to apartments wanted. There were 61 advertisements. Of those advertisers who mentioned rent, 11 wanted 4 or 5 rooms and 12 wanted 3 or 4 rooms. Of those who want a minimum of 4 rooms, the average offered rental was $68, or $17 a room. Of those who need a minimum of 3 rooms, the average offered rental was $57.50, or $19 a room. But the available vacancies averaged $96.40 for ¢4-room apartments, or $24.10 a room. Three-room apartments averaged $92.75, or $30 aroom. Thus thcre is a gap of $28.40 be- tween offered and asking price for 4-room apartments and a gap of $35.25 between of- fered and asking price for 8-room apartments. These figures, of course, are not conclu- sive, but they are indicative. They prove that the shortage is in shelter for those able to pay not more than $75. And they sug- gest what would happen if rents generally Were decontrolled. There would be a preci- pitate rise throughout this area. The scar- city of vacancies in the desired rent range means that thousands of tenants would have no alternative but to pay whatever was demanded. Past Comments on National Health Insurance EXTENSION OF REMARKS HON. EUGENE D. O’SULLIVAN | OF NEBRASKA IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. O’SULLIVAN. Mr. Speaker, I wish to call attention to the following safe-and-sane editorial which appeared in the Lincoln Journal, of Lincoln, Nebr., under date of Wednesday, May 11, 1949, as it seems to be so very much to the point that I feel it should have far wider circulation than it has hitherto received: EDITORIAL COMMENT AND OPrINtIon ‘SLOGANS 4S MEDICAL PRACTICE If the publicity campaign of the American. Medical Association against national health insurance, as outlined in a recent issue of Everyday magazine, is correctly described by the St. Louis Post-Dispatch, then it is an odd sort of thing indeed for which a million dol- jars has already been raised by a head tax of $25 on doctors. Its philosophy is epitomized in a Post-Dispatch editorial by this adage, long associated with the profession of public relations: “You don’t have to make a thing better if you can sell it to enough people as it is.” The campaign laid out by the counseling firm of Whitaker & Baxter is based on that philosophy almost wholly, writes the editor. “It intends to put slogans in the mouths of doctors, to dose PTA meetings and the like with propaganda pills lusciously sugar-coat- ed. Unless people are prone to believe what they are told in preference to what they can see with their own eyes, and we don’t think they are, the AMA campaign is largely going to consist of the medical profession talking to itself. “The head of a family swamped with a $500 surgical and hospital bill for which he has saved no money whatever—the person who struggles along in discomfort for years be- cause he can’t afford to pay the exorbitant prices the dental cartel charges for plates— are not going to form their opinions on the basis of anybody’s slick slogans. “Public approval will wait on improvement in the services themselves, and when it comes no slogans or high pressure campaign will be required to convince anyone it’s here.” There also appeared in the October 8, 1949, issue of Capital Comment, pub- lished by the Democratic National Com- mittee at Washington, D. C., the follow-~ ing about the present attitude of the American Medical Association: Syndicated Columnist Peter Edson, whose objective reporting has won him national awards, recently summed up the AMA’s posi- tion on a health program, as put forth by the AMA publicity staff, as follows: “Clem Whitaker, director of the AMA-edu- cational campaign, says medical care of the indigent isn’t the doctors’ problem. That is said to be the problem of the local com- munity in which he lives. The man may be sick only because he also needs food, clothing, or housing. “None of the AMA spokesmen will take a position on whether there should be Federal aid for housing or feeding the undernour- ished. They do believe that there should be Federal aid for hospital construction, Federal aid for medical education, Federal aid for research. “But they are against bills providing med~ ical care for all school children. That would be socialized medicine. They are against laws for national-health insurance, That would be socialized medicine. “In summary, Federal subsidies for the doctors seem to be all right, but Federal aid for their patients is all wrong.” My position in reference to socialized medicine and compulsory national health insurance has been so grossly misrepre- sented in the past that I wish once again to make my legislative stand on these matters clear. I have always been of the thought that socialized medicine should never find a place in our Govern- ment set-up. But socialized medicine and national health insurance are two’ different things, as the slightest investi- gation will disclose. It seems to me that the medical pro- fession has. been grossly deceived by some interests or some sources and have re- fused to investigate or learn the differ- ence between socialized medicine and na- tional health insurance, There are at least three national health-insurance bills pending in the APPENDIX TO THE CONGRESSIONAL RECORD Congress now which are compulsory in nature. Having had some disastrous life-insurance experience personally, as far as loading up on insurance was con-~ cerned, I can see the danger of com- pulsory health insurance to many well- meaning persons. I think that we need some sort of national health insurance, if private in- surance companies cannot do the job, but any such insurance should be volun-~ tary and by that I mean that the indi- vidual should be accorded the right to say whether he wants the insurance or not and to choose his doctor and the doctor should have the right to accept or reject the patient. There are many people who would not want national health insurance such as persons who already have adequate in- surance of their own choosing with pri- vate insurance concerns, persons who work for railroads and other large busi- ness institutions, as well as certain pub- lic and quasi-public businesses and, of course, all veterans have a hospital, med- ical, and dental plan already and it would be of no use to compel these vet- erans who are employed to take out na- tional health insurance. In other words, I do not believe in loading up people who do not need it with health or accident insurance whether it be Government in- surance or private insurance, It is my most earnest hope that when the fog of misrepresentation has cleared away that some voluntary plan of na- tional health insurance will be evolved which will be safe, sane, and workable, Curtailment of Postal Services EXTENSION OF REMARKS HON. HUGH J. ADDONIZIO OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. ADDONIZIO. Mr. Speaker, as sponsor of H. R. 8205, to rescind the or- der of the Postmaster General curtailing certain postal services, I was pleased to receive the following resolution of the city of Newark, N. J.: Whereas Postmaster General Donaldson has recently issued a directive curtailing mail deliveries and other services generally, and particularly mail deliveries in residen- tial districts, from two trips a day to one trip a day therein; with resulting incon~ venient and unsatisfactory delivery service, all of which is a departure from long-estab- lished practice and a retardation of mail service, to the disadvantage of business as well as residents of the city of Newark; and Whereas the curtailment of the services aforesaid: will result in reduction of employ~ ment in the postal service, will add to pres- ent unemployment, and will be productive of hardship unreasonably imposed upon our people; and Whereas it is the duty of the Federal Gov- ernment to sustain present essential Gov-~ ernment activities and employment and to avoid creating unemployment when in fact any economy effected will result in imposing a burden upon State and municipality which may arise therefrom: Now, therefore, be it Resolved by the Board of Commissioners of the City of Newark, That we, for and in he-
APPENDIX TO THE CONGRESSIONAL RECORD half of the citizens of our city, do hereby address ourselves to the President of the United States and to the Postmaster Gen- eral, and respectfully request that the afore- said directive curtailing postal-delivery service be and the same shall be withdrawn, on the following grounds: 1. Curtailment of services will work a hardship on our citizens; 2. Will result in increased unemployment and possible strain on relief load; 3. Any economy which might be effected would not warrant this drastic action; and be it further Resolved, That the city clerk shall for-~ ward copies of this resolution to President Truman and to Postmaster General Donald- son; and to the United States Senators from New Jersey, and the Congressmen of the Tenth, Eleventh, and Twelfth Districts. RALPH A. VILLANI, Leo P. CaRLin, SterHen J, Moran, J. B. KEENAN, M. ELLENSTEIN, Board of Commissioners of the City of Newark, N. J. The Secretary and Treasurer of the Amer- ican Federation of Labor, Hon. George Meany, Predicts Doctors Will Eventu- ally Hail Health Insurance as a Boon to Their Patients and Themselves EXTENSION OF REMARKS Or HON. EUGENE D. O’SULLIVAN OF NEBRASKA IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. O’SULLIVAN. Mr. Speaker, there appeared on April 18, 1950, in the Ameri- can Federation of Labor Weekly News Service, a very timely and enlightening article entitled “Meany Predicts Doctors Will Hail Health Insurance,” which ar- ticle is well worth reading and giving serious consideration. It is as follows: NEw YorkK.—A. F. of L. Secretary-~Treasurer George Meany predicted that the American Medical Association “will be forced to ad- mit—after it is enacted" that health insur- ance is “the best break the doctors of this country ever got—to say nothing of their patients.” In a speech which summed up A. F. of L. philosophy and reasons for choosing a liberal Congress in the 1950 elections,Mr. Meany sald the American people are not asking handouts from their Government but “are paying our own way.” “I am convinced that the American peo- ple are willing to pay still higher taxes for more adequate protection against economic disasters and for new programs such as health insurance,” he said. Mr. Meany spoke in presenting a citation for public service from the League for Indus- trial Democracy to Senator Herperr H. Lex- MAN. Mr. LenMan said in acceptance that critics of the welfare state spend their time hunting Communists while opposing meas- ures that would weaken communism. Mr. Meany said: “Permit me to preface my remarks on free- dom and the welfare state by admitting that I believe in both, More than that, I believe that both freedom and a state of welfare can and should be enjoyed by the American peo- ple at the same time. “So, I am sure, does our special guest— Governor LenmMan—because his whole public career has been aimed at the achievement of those goals. That is one of the chief rea- sons why the labor movement has always regarded him so highly. “Of course, there is no such thing as a welfare state, neither here in America nor anywhere else in the world. To liberals, the welfare state is an ideal worth working for and fighting for. To the reactionary poli- ticians who pounced upon the phrase for propaganda purposes, the welfare state was merely something to frighten people into vot- ing against their own interests. “Fortunately, the great majority of the American people do not get panicked that easily. They have more common sense. “A free government, like ours, was estab- lished in the first place not to rule the peo- ple, but to serve them. “The Government does not deprive us of “any liberties by such services as workmen’s compensation, bank deposit insurance, crop insurance and social security. The only com- pulsion in any of these programs is the pay- ment of taxes for the insurance provided, and taxes always have been and always will be with us. “I am convinced that the American people are willing to pay still higher taxes for more adequate protection against economic dis- asters and for new programs, such as health insurance. “When the welfare state slogan fell flat, the reactionaries hunted around for a new phrase and came up with the hand-out state. All of us who pay taxes for the extremely meager economic and social insurance which our Government, as yet, affords us realize quite clearly that we are not getting any hand-outs but are paying our own way. “But, speaking of hand-outs, it is some- what surprising to me that our reactionary friends never do refer to the very consider- able hand-outs which our Government has generously awarded to big business in the past and the heavy subsidies which it is still pouring out. “Was it a ‘hand-out state’ when the Gov- ernment spent millions to help the railroads build transcontinental transportation net- works? “Was it a ‘hand-out state’ when the Gov- ernment paid heavy subsidies to American shipping, so that an adequate merchant ma- rine could be maintained against foreign competition? ‘Ts it a ‘hand-out state’ when the Gov- ernment subsidizes the airlines through higher air-mail payments than are econom- ically justified? “Is it a ‘hand-out state’ when the Gov- ernment deliberately takes a loss on second- class mail in order to help publications cir- culate more widely? Do you ever hear the newspapers and their friends in Congress complain about Government largess when big business is the direct beneficiary? “The American Federation of Labor is, and has consistently been, a firm defender of our free-enterprise system. As a general policy, we do not believe it wise or prudent for the Government to invade the fleld of private business, wherever private enterprise is serving the public well. If any of the social-justice programs undertaken by the New Deal or Fair Deal were actually dam- aging to private business, we would be among the first to object. But, has private business really suffered under the New Deal and the Fair Deal? “I am sure we can all remember back as far as 19338 when Franklin Roosevelt took office. Our financial structure on the brink of complete disaster; agriculture prostrate, and the buying power of our people at the lowest point in 40 years; small business failures at an all-time high. “We didn’t hear any arguments about stat- ism or socialism from the great leaders of industry in those days. No—on the contrary they flocked to Washington by the thou- sands with all sorts of proposals by which. A3327 they hoped the new administration would save them from disaster. That they were saved by the prompt actions of that admin- istration is a matter of history. “And how have the great captains of in~ dustry, who were the architects of our ruin back in the twenties, made out under the Fair Deal which they now so viciously con~ demn through their spokesmen? * * * “Iam not going to bore you with any long- winded analysis of the present position of big business. Let me simply quote from a report, just out, by the United States News, which is edited by David Lawrence, This special report appeared in the March 24 issue of that publication. Here is the quota- tion: “<‘American corporations, as a group, are rolling in money. In four postwar years they have invested $60,000,000,000 in new plant and equipment; they have increased other assets by $11,000,000,000; they have added $21,000,000,000 to reserves for depreciation, and they still have $40,000,000,000 in cash and Government bonds on hand. “ ‘Never before was the financial position of United States business so strong.’ “I think those figures tell the story. To~ day, the insurance companies, who so bitterly fought us every step of the way to prevent workmen’s compensation and social security are making more money than they know what todowith. Today, the utility interests which tried every fair and foul means of blocking the rural electrification program are silently splitting up huge dividends from increased sales of electric power and electric appliances. “In the same way, I venture to predict, the American Medical Association, which is s0 frantically campaigning against health in- surance, will be forced to admit, after it is enacted, that it was the best break the doc- tors of this country ever got, to say nothing of their patients. “This controversy over the policies of the New Deal and the Fair Deal is nothing new. It goes back to our very beginning as a na-~ tion. Simply stated, it is: Shall our polit- ical and economic policy be what the people want? Or shall it be what some superior guiding group may think is best for the people? “Yhe present-day Bourbons of our country talk about statism, socialism, and the wel- fare state. To me labels, with the excep- tion of the union label, are more or less without meaning. I am for the greater wel- fare and security of all the people of this Nation. I believe that it is a proper function of a democratic government to strive for a better life for all its people, including those who work for wages. Put any label you de- sire on this effort for a better day—statism, New Deal, socialism, Fair Deal, or welfare state—I am still for it. “In your time and in mine, I am confident that the American people, by their own de~ cision in free elections, will be able to achieve a greater degree of human welfare and security and will discover that their free- doms have been broadened, rather than cur- tailed, in the process.” ~ World Without God EXTENSION OF REMARKS oF HON. HAROLD D. DONOHUE - OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. DONOHUE. Mr. Speaker, I should like to call attention to an ex- cellent editorial comment on commune ism, which appeared in the May 2, 1950,
A3328 issue of the News-Tribune, Walthem, Mass. Here is summed up, in a few poignant paragraphs, a precise descrip~ tion of what human existence would be in a Communist world and it is well worth reading. The article follows: Woritp WitHouT Gop When communism takes over, all the things men have held dear throughout his~ tory are taken away. Communist rule is an insidious thing, affecting one liberty at a time until all are gone. What goes on behind the iron curtain in Russia is more or less a matter of conjecture, put it is known there is little personal free- dom, and the Russian people are virtual slaves of the government. A clearer pic- ture of Communist rule is found in the Russian zone of Germany. Latest move there is an attack on relix gion. The young are being taught there is no God, and that Christ never lived at all. Forcible attempts are being made to replace the Christian faith with dialectical materialism, especially in the schools. Ap-~ peals to the government by disiressed pa-~ rents have been ignored. Police force is back of the movement to drive religion out of the lives of the people. Unless the children say the things they are told to say, and take part in activities arbi~ trarily imposed, they face punishment. Pa- rents are told they will be deprived of what little freedom remains, their jobs and their bread, if they do not join in the move to make eastern Germany a pagan land. Here is communism in its ultimate de~- velopment, a world without a God and with out hope. A Splendid Editorial Comment on Presi- dent Harry S. Truman’s Veto of H. R. 1758, the So-Called Kerr Natural-Gas Bill EXTENSION OF REMARKS HON. EUGENE D. O’SULLIVAN OF NEBRASKA IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr, O’SULLIVAN. Mr. Speaker, since our great President, Harry S. Truman, so Wisely vetoed H. R. 1758, the so-called Kerr natural-gas bill, wails, editorially and octherwise, have poured forth through the media of money-locked newspapers and other publications throughout the land, which sheets are engaged always in doing disservice to the natural-gas buying and natural-gas using public. A number of insertions from these sources have been made in the ConcrEssIONaL Recorp, and they, too, have bewailed the fact that this allegedly dicta-overruling and _ Jegal-clarifying measure got the knockout punch from our splendid people-elected and people- serving President. I dare say more financial tears have been shed over the inglorious demise of this dollar-catching bill than has ever heretofore poured forth from avaricious, greedy, and selfish eyes. It is most heartening indeed to find that many newspapers in our land which have not degenerated tc the sordid level of “kept” news-dispensing journalism have spoken out fearlessly and in a most appreciative way about the wisdom and courage displayed by our Chief Executive in turning thumbs down on this legisla- tive wolf in sheep’s clothing. I now shall place in the CONGRESSIONAL Recorb at this point an outstanding edi- torial which appeared in the May 17, 1950, issue of the Lincoln Star, a daily Democratic newspaper, published at Lin- coln, Nebr., which was authored by its distinguished editor, the Honorable J. E. Lawrence. . This editorial is as follows: TRUMAN VETO President Truman’s veto of the Kerr nat- ural-gas bill was a vindication of the faith which millions of Americans placed in the Chief Executive. If Washington observers of the stature of Drew Pearson, Mark Childs, Tom Stokes, and Bob Allen are correct, the bill which the President vetoed was an uncalled for, un- bridled grab by powerful interests. In prac- tical effect, it was .a move by the so-called independent natural-gas producers to get out from under rate regulation by the Fed- eral Power Commission. It has been said that the bill would take between $100,000,000 or double that amount from the pockets of the consumers of natural gas. Right here in Lincoln, and in other Nebraska communities, there is an illustration of its possible results in the application of the Northern Natural Gas Co. to raise its rates. While that action is based upon a ruling by the Kansas Utility Commission granting the company an in- crease, it was a striking parallel that the step was planned at the time the Kerr bill was up for passage and notice came almost simul- taneously with final congressional action. It wasn’t an easy decision for the little man. The amazing thing is that Mr. Truman, when the chips are down and issues of great consequence to the American people are to be determined, comes to the front with a magnificent display of courage. I mean courage. That veto of his required him to turn thumbs down on Democrat Bos Kerr, & man in the gas business himself, who has spent most of his time greasing the path for congressional approval of his bill. It meant that the President had to soak the Speaker of the House, another Democrat, and a Powerful Democrat, Sam RaYBurN, also with a veto. It meant that Mr. Truman deliber- ately invited the retaliation of a majority of the Democratic Members of the Senate. In the field of politics, that is the kind of courage the American people admire. At no time has this bill made sense to the consuming American public. Its sponsors have claimed that in removing them from the regulation of the Federal Power Commis- sion, there would be no increased costs for natural gas, but on the contrary, competition in the system of free enterprise would take care of all that and the consumer might even benefit. How their hearts bled for the con- sumer. What kind of sense does that make? In his veto message, Mr. Truman pointed out that the natural factors relating to the pro- auction and distribution of natural gas limited the competition of free enterprise, which is a matter of common knowledge. Even more, it is difficult to believe that the people behind this bill were busy turning heaven and earth in order to open up a hot competitive fight in the natural-gas field. Well, the people won a victory, thanks to Mr. Truman. They could well think soberly upon this great fight now in progress in Washington. There are other bills of equal interest to the American people still pending. They relate very directly to the future of America. In all the chorus of today, part of the time, a thundering denunciation of communism to detract public attention; part of the time a “sweet song of free enterprise” to lull the people to sleep and to arouse # recognized devotion to the system of capital= ism. Who is there in this country that wants APPENDIX TO THE CONGRESSIONAL RECORD to tear capitalism apart? Who is there In this country that doesn’t recognize that regulation’ of a sensible character is the strongest safeguard to capitalism that exists? Mr. Truman met this challenge and met it nobly. Report of Chicago Community Fund Stresses Housing Shortage—A Factual Picture From an Authoritative Source EXTENSION OF REMARKS HON. BARRATT O’HARA OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. O'HARA of Tllinois. Mr. Speaker, on Monday the Banking and Currency Committee starts the public hearings on the Spence bill for the extension of rent control. As far as Chicago is concerned, the termination of rent control on June 30 of this year would result in a situation of extreme distress which none of the Members from that city would wish to contemplate. I on several occasions have called the attention of the House to the continuing lack of housing in Chicago within the means of a large segment of our popula- tion and of the certain tragedy which was certain to befall our people if the controls ceased before the present hous-~ ing shortage had been eased. I have sought to present the matter factually, and without any exaggeration, which I think will be shown by the following news article from the conservative Chicago Daily News of April 28, 1950, appearing under a four-column headline, “95,000 families doubled up here—144,000 living in houses unfit for human beings”: NINETY-FIVE THOUSAND Faminizs Dousiep Ur—144,000 Faminigs In Housts Unrir ror Homan Bzrncs To Live iv This description of Chicago’s need for housing is given by the Welfare Council of Metropolitan Chicago in its annual report on namet needs, submitted to the community und. The lack of adequate housing is the pri- mary problem in the divisions of education and recreation, and family and child welfare, “In almost every statement housing ap- pears as the foremost community problem affecting the work of family and children’s agencies,” the report says. “Lack of housing, hazardous housing, wholesale evictions, and exorbitant rentals for poor dwellings were all listed under the general subject of housing.” American Opportunity EXTENSION OF REMARKS oF HON. ALBERT THOMAS OF TEXAS IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. THOMAS. Mr. Speaker, under leave to extend my remarks in the Rec- ORD, I include the following speech made by Glenn McCarthy to the combined
APPENDIX TO THE CONGRESSIONAL RECORD service clubs of Gainesville, Tex., April 19, 1950: It is an honor to be invited here today to participate in the opening of the Gainesville community circus. My good friend Virgil Shepherd, of course, gave me no alternative. He called me and told me I was coming. I’m glad he did. The Gainesville circus is one of the finest demonstrations of the meaning of American opportunity and initiative in our country today. I have heard how your citizens from all walks of life join together for the purpose of building a community tradition; how op- portunity is aforded young performers to get their first exnerience, and how boys and girls get their first training in business. All of this is done in what has become known as the Gainesville spirit, to building a commu- nity better than it would be otherwise, and to aid in worth-while charitable undertak- ings. No man could be less than proud to be selected for a part in these festivities, par- ticularly an outsider. To be with people like you is honor enough, and I appreciate the invitation you gave me. I was asked to make a talk on a subject of my own choosing. That leaves a man with quite a responsibility. I want to talk about American opportunity, what some of our outstanding Texans have done, and a pol- icy which is today threatening to stifle op- portunity. Before the Lucas gusher spouted forth a hundred thousand barrels of oil a day, the petroleum industry was merely an illumi- nation and lubrication business. That his- toric morning of January 10, 1901, not.only gave birth to the automotive and air age; it. made such an age necessary. That morning. Capt. Anthony Lucas, the wildcatter, boosted America out of the horse-and-~buggy era. He pointed the way for men of guts and will to build Texas into the empire it is today. He made it possible for America to become the first power among nations. The first independent oil man of modern vintage opened the avenue that led men of determination and vision into every section of the Southwest in search for oll. The salt domes of the gulf coast, the Rangers, the Burkburnetts, the Desdemonias, the Glenn Pools, the El Dorados, and others followed. , Then oil came to west Texas, east Texas, and Panhandle fields. From there came other prospectors and the quest is still on. It will mever end unless initiative is completely killed, and that is ccrtainly possible, Men have made fortunes—great fortunes. In fact almost every major oil company in the world was born in Texas, most of them at Spindle Top. But for every fortune that has been made, a thousand prospectors have gone broke trying. Those men had a right to search for fortunes here, Our forefathers gave them that right to search for fortunes here. Our forefathers gave them that right and until some tyrant takes it away, they will continue to exercise it. Men. have come to find oll where science has said it could not exist. That is still hap- pening. Lucas was called a fool. Dad Joiner was laughed to scorn. Burkburnett came out of “Fowler’s folly.” Oilis where you find it—not where someone says it is. But it takes an indomitable spirit, a will to gamble, and hard work, to find it. That spirit and that will ave typically American. But there must be an incentive. That incentive is the chance for wealth or financial independence, as well as the incentive of doing good for your fel- lowman. An independent oll man can make a fortune or go broke—it is his own busi- ness. That’s why independents find most of the oil, They can follow their own dic- tates—take their own chances. They are individuals, responsible only to themselves. They usually listen to no board of directors, limited in their decisions by a group of stockholders, That’s why they find the oil, and will continue to do so as long as independent oil men have an incentive to Operate. To a far greater extent than most people imagine, the oil industry is responsible for our world leadership. Try to imagine what the world would be like without oil or try to imagine what America would be like if England or Russia or Germany had America’s supremacy in petroleum. When you get through thinking about that, I believe you will thank God for Captain Lucas’ discovery and the system of government that made the early development of this industry pos- sible. Today Texas enjoys a position in the Na- tion as the leading oil-producing State. You can’t give that credit to any major oil com- pany. You must give it to an army of inde- pendents, thousands of whom neither you nor I ever heard of because they lost everything they had drilling dry holes. Gainesville is located in the center of the greatest oil producing area in the world. You gentlemen know what the o1l business has done for you. ‘You know what your business, your industry, or your profession owes to oi]. And the men who work for you should know, too. But as an industry, oil owes its greatest debt to the independent. Without him there would have been no oil industry, now or in the future. Without the independent the oil industry would become a monopoly upon which the people must depend, espe- cially after the fittest has survived the battle of the majors which would follow the disap- pearance of the last independent. “I think it is unimportant what an inde- pendent does for himself or to himself; whether he becomes wealthy or goes broke. That’s unimportant. What is important is his contribution to national, State, and com-~ munity prosperity. Who can match the oil man’s contribution to progress and pros- perity, here or anywhere else? He has cre- ated wealth where poverty has existed. He has built industry and business where none existed. He has given an abundance to our way of life that no man in other fields can . equal. ‘Yet at this very hour the independent oil man, as such, faces extinction. His life, as an oil man, is in a balance, and with it, so is yours in whatever field you are en- gaged in, Let me explain your part. Just a few weeks ago your governor was forced to call a tax session of the legislature and increase your taxes. In spite of that, old age pen- sion payments are down. In spite of that, farm roads are not being built. Unemploy- ment is growing in Texas—and elsewhere. Businesses are closing their doors in some areas. There is a trend in Texas that may lead us a long way down the road away from the progress and prosperity we have known. You should and probably do Know why every one of these things is true. It is be- cause of the importation of almost a million barrels of foreign crude into this country every day. very time a barrel of foreign oil comes into America, a barrel less is produced in Texas. Texas is taking most of the lick-~ ing but the rest of the country will even- tually, feel it. Your State revenues were off $20,000,000 from oil taxes alone last year, But that’s just State revenue. How much is it off in oil payrolls, oil investments, oil ex- plorations, lease buying, drilling? The fig- ure would stagger all of us. Texas bears the burden of these imports because it is the only State with a con- servation and regulatory body controlling the oil industry both honestly and efficiently. You might think the railroad commission should take another course, If it did, the price of ofl would drop, and business, taxes, and industry would suffer even more. We are on the horns of a dilemma. We can choose one of two ways of going over the A3329 deep end. We can cut production and make room for imports. Or we can keep produc- tion up and permit the bottom to drop out of the conservation of a vital natural re- source. We must take steps to stop or at least retard oil imports. We must at least equalize imports with exports. I say this because we cannot compete with foreign imports. Our economy is healthy because oil wealth is spread to the greatest possible extent. The oil industry pays handsome wages to labor. It pays landowners well for leases and rentals. It pays investors good divi- dends and royalties. It pays a great share of State, county, and Federal taxes. It builds communities, businesses, industry, and generally brings prosperity and progress. American industry is forced to compete with foreign oil. This oil is produced with slave labor. It is produced without regu- lation, and without limit. Where we pro- duce a hundred barrels a day, a well in Ara- bia or Venezuela is producing ten and twenty thousand barrels a day and there are no taxes, although good chunks of cash must be handed out to foreign politiclans and potentates and because of the volume of production per well a barrel of foreign oil can be sold in New York Harbor for ap- proximately $1 per barrel in competition with domestic crude at $2.65 per barrel. I’m not blaming the importers. They have found the oil and they are coming to the only oil market. The people must be told what this is doing to American industry. This is a message that must be carried to the people. Our Texas Congressmen under- stand it. Ycur Congressman, ED Gosserr, probably understands it better than any man in Congress. But neither-Ep GosszrT nor the other Texas Congressmen can sway the rest of Congress. Something must be done to make our Government leaders realize—not wait to find out before it is too late—what this oil-import business is doing to the economy of our Nation. It is destroying the initiative of men in the oil business, I see good men dropping out of the oil business - every day. Every time one drops out, the in- dustry suffers. It seems that even the ma- jors who do the most importing could see nis. I believe we should keep this know-how in the oil industry. I respect the college- trained engineers, geologists, geophysicists, and executives. They have a vital place in the oil industry, But they are going to be in a pretty bad way when the last inde- pendent moves out of the field. It takes something different to drill for oll with your own dollars. I’m afraid that when the independents are stopped in America they will go into foreign flelds. I don’t believe we have found half the oil in America that remains to be found. And I don’t believe the other half will be found if the independent is forced out of the fleld, I give the majors a great deal of credit for developing oil properties after they are found, but I believe that they will admit that they are not so hot at finding new re- serves. Yet new reserves in America are necessary. It seems foolish to develop oil properties in forcign areas, particularly the Middle East, at the expense of domestic production. All that Russia is doing is waiting for American dollars and American know-how to drill the wells, build the pipe lines, and the refineries. Then they will have the advantage we have— all at our expense. Even to the point of breaking down our economy in the process. Certainly without American capital and know-how the Russians won't get far. They have done a pretty poor job with a gueat oil reserve of their own during the past 50 years, War with Russia is inevitable. All Russia needs is petroleum for tanks and planes. War will come when Russia has that petro- leum. If we know the production Russla now has, plus the length of time it will take
A3330 our own major oil companies to develop the Arabian area production to the point where that production would give them sufficient oil, added to their own, to fight a full-scale war, we could predict within 90 days the actual date of the outbreak of war. So if we do as the uninformed Members of Congress and the poorly informed State Department officials advocate, we will be cutting our heads off with both sides of a double-bladed ax. We will kill our own in- dustry; chase out the independent who makes it go the American way; destroy initi- ative, and hamstring domestic development with one blade. With the other blade we encourage foreign development and give our potential enemy the weapon with which to crush us militarily. Gentlemen, I hope I have made myself clear. If I have given even a few of you a clearer impression of a threat to all of us— you as well as me—I have accomplished what I set out to accomplish. In this homeland of initiative and oppor- tunity, I thought the message appropriate. Thank you. Address of Harvey G. Ellerd EXTENSION OF REMARKS OF HON. NOAH M. MASON OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Saturday, May. 6, 1950 Mr. MASON. Mr. Speaker, mutual respect, mutual confidence, and real team work between Members of Con- gress and the businessmen of their dis< tricts are very necessary if this Nation is to be saved. Because I feel so keenly about this matter I was deeply impressed by the address of welcome given the Illi- nois congressional delegation at a dinner in the Statler Hotel, Tuesday evening, May 2, 1950. Under leave to extend my remarks, therefore, I include the address of welcome of Harvey G. Ellerd, presi- dent, the Chicago Association of Com- merce and Industry: Members of the Illinois delegation and the Eighty-first Congress, ladies and gentlemen, this annual gathering with our Lllinois law- makers is a very pleasant event. It gives us, the folks from back home, an opportunity to Tenew our contact with the men we read about in the newspapers and to greet them on an entirely personal basis. Usually, when we meet our legislators they are out trying to get votes, or we, as businessmen, are try- ing to influence their judgment on pending matters. It is likewise a pleasure to meet the con- gressional wives. More than that, it is an educational privilege to meet these ladies whose influence on our elected representa- tives is so substantial and, may I say, bene- ficial. I doubt whether any of the members of the Illinois delegation will belittle the high place that congressional wives hold in the scheme of things. If any of the gentlemen does contend that he is not influenced by his wife, I think it is important that his con- stituents know that too, because there is a widespread opinion that a man who claims to be boss in his own house will also lie about other things. All of the members of the three great Illi- nois business organizations represented here tonight regard themselves as a substantial end important part of your constituency. I am supposed to tell you about the interest of these business organizations in good gov- ernment. But who is not interested in good government? Certainly every citizen who aspires to any degree of respectability will insist that good govei-ument is one of his primary interests. There may be a wide difference of opin-~ jon among these partisans cf good govern- ment, however, as to what government is good and what is the right way to improve it. And, since we are all a part of govern- ment in this Republic, each of us has a right to an opinion. In our attempts to make and keep good government we believe it to be our responsi- bility as businessmen to furnish you law- makers with the facts upon which laws are based and to forecast for you the effects and the results which we believe will develop if certain proposed legislation is passed. I, personally, have great respect for a Member of Congress because he has corralled enough votes to get elected. If I were to run for Congress they would not even need a tally sheet to count my votes. Developing a following in politics, and so conducting one’s self as to inspire the con- tinued confidence of the people, is an achievement which requires a great deal of professional skill and knowledge. The people are fickle and they switch their allegiance suddenly and too often on an emo- tional basis. I have often been impressed with the insecurity of a career in public service. Some businessmen are inclined to believe they could do a better job of running the Government than the men who have made politics a life work. When business- men, professional men or military men are elected to office, however, they seldom dis- tinguish themselves and some of them wind up as failures. I believe very strongly that the men whose business is Government should be entrusted with the conduct of Government. Just as in business, there is no substitute for experience. Just as businessmen sometimes develop delusions, however, regarding their ability to administer a public office belter than the men who make public office a career, so some public office holders become imbued with the idea at times that they could oper- ate business much more satisfactorily than the men who meet the pay rolls. As a rule they cannot. As a rule they fail just as significantly as the businessmen fail in their efforts to conduct a public office. All of this is a very roundabout and prob- ably a tiresome way of saying “‘sioemaker stick to your last.” I believe, however, that it is something which needs restating from time to time. If businessmen and our rep- resentatives in the Government will each remember their own limitations and each respect the abilities of the other group, I think we will accomplish more for the gen- eral good. As far as the businessmen are concerned, I think you will find most of us fair minded and constructive. There was a time when many businessmen were like a ball team I played on a few years. Our motto was “Win, tie, or fight—never lose.” ‘We should, and largely do, give each other credit for honest motives in seeking good Govetnment. An occasion such as this, which enables us to get acquainted infor- mally, does much toward that end, I have had the pleasure of being closely connected with the Chicago Association of Commerce and Industry for nearly 20 years, and have been its president for the last year and a half. I have also participated in the activities of the Illinois Manufacturers As- sociation and the Illinois State Chamber of Commerce. As a result of these experiences I say to you ladies and gentlemen with all sincerity, that these organizations are not motivated by any selfish interest but rather by a desire that they be a factor in pro- ducing the greatest good for the greatest number of people. Jobs are one of the most important items of our economic necessities and the mem- APPENDIX TO THE CONGRESSIONAL RECORD bership of these three great organizations represents a tremendous number of jobs. We know that you, as lawmakers, are for those things which will make for perma- nency in jobs and which will create more jobs. Both of these results depend upon the success with which business is able to operate. When we feel that laws will place a handicap on our ability to maintain and create jobs, you will hear from us, and we believe that your response will depend upon our ability to convince you of the correctness of our position. I really had not intended to say these rather serious things on this occasion but I could not let the opportunity go by. The English have a song which goes, “The more we are together, the happier we’ll be,” and that is the theme upon which I should like to close. The better we know each other, the better the results of our efforts as busi- messmen and of yours as lawmakers, the happier we'll all be. Antihistamines EXTENSION OF REMARKS HON. FRANK B. KEEFE OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. KEEFE. Mr. Speaker, some time ago I addressed the House on the sub- ject of antihistamines. I did so in an attempt to prevent a huge fraud being perpetrated upon the American people that might have a very deleterious effect on public health. I pointed out at that time that the Food and Drug Adminis- tration had never made any findings as to the efficacy of these new pills. It is interesting to note that the blatant ad- vertising on the radio has ceased and that the full-page ads in the newspapers have likewise subsided. Evidently the cream has already been skimmed from the public purse. It is also interesting to note that the Federal Trade Commission has insti- tuted proceedings designed to obtain cease-and-desist orders against the man- ufacturers of certain of these pills for the reason that the advertising claims are false and misleading. It is also interesting to note that a news item appearing in last evenineg’s Washington Star indicates that an armed forces medical board, after a 6 months’ investigation made by the armed forces epidemiology board reports that “no benefits from. the standpoint of either prevention, reduction of symptoms, or shortening of duration of colds was shown.” The Army revealed at the same time that it would not use the drugs for cold treatment and that other armed services are expected to follow suit. The article referred to follows: ANTIHISTAMINES Far, on Conps, ARMED ForcEs Tests Sow An Armed Forces Medical Board today announced that an investigation had pro- duced no valid evidence that antihistamine @rugs are beneficial in treating colds. The Army revealed at the same time that 4t¢ would not use the drugs for cold treat- ment. The other armed services are ex~ pected to follow suit, a board spokesman said. The Navy is conducting independent tests of the antihistamine drugs at its Great
APPENDIX TO THE CONGRESSIONAL RECORD Lakes Naval Training Station, and a spokes- man said its stand on the drugs probably would not be settled until completion of these tests. The report, based on 6 months of tests, was made by the Armed Forces Epidemiology Board meeting today at the Army Medical Center here. The Board is a joint advisory agency of the Army, Navy, and Air Force, consisting mainly of civilian doctors. Tests were conducted on both civilians and milltary personnel, mostly in Cleve- land, by the Board’s Commission on Acute Respiratory Diseases, headed by Dr. John Dingle, of Western Reserve University. They showed no benefits, from the stand- point of either prevention, reduction of symptoms, or shortening of duration of colds, the Board said. Effect of the durgs on allergies such as hay fever was not studied. Persons suffer- ing from such allergies were specifically ex- cluded, Col. William F. Stone, Board mem- ber and commandant of the Army’s Medical Research and Graduate School, explained. Persons participating in the tests were given either antihistamine tablets or tab- lets of plain sugar, Colonel Stone said. “No significant difference was noticed,” he said. National Children’s Day. | ‘EXTENSION OF REMARKS HON. JOSEPH R. BRYSON: . . OF SOUTH CAROLINA IN THE HOUSE OF REPRESENTATIVES. Saturday, May 6,-1950- . Mr. BRYSON. Mr. Speaker, the Judi- ciliary Committee has-jurisdiction over,: amongst many other matters; legislation establishing holidays and ‘commemora-- tion days for national observance. ' I: have the honor of being chairman of the. particular subcommittee of the Judiciary Committee to which has been assigned initial responsibility for considering bills of this nature. On May 3, 1950, my subcommittee conducted a public hearing on House Joint Resolution 227, introduced by the gentleman from California, my esteemed colleague [Mr. DoyL#], and many com-' panion bills, which have for their pur- pose the establishment of a National Children’s Day on the first Sunday in May of each year. These bills, which are noble and meritorious in their intent, are sponsored by the Kiwanis, and cer- tainly I could take no exception to their constructive purposes. Mr. Doyuez and several other Members of the Congress appeared before the sub- committee and delivered very effective and inspiring statements on behalf of the worthy cause. I commend the gen- tlemen on their lofty, unselfish thoughts, At the same time, however, there also appeared before the subcommittee a Mr. George J. Hecht, chairman of the Chil- dren’s Day National Council and pub- lisher of Parents magazine. Mr, Hecht in his presentation revealed with shock- ing poor taste the purely commercial motives with which he viewed the estab- lishment of National Children’s Day. So apparent was his avidity for extract- ing the last ounce of profit from the measure that he proposed the day be set for some time in October instead of June on the grounds that the time of the year would lend itself better to commer- cial exploitation. His misplaced empha- sis on the importance of gifts as a Means of cementing a child’s love for his par- ents comes as a revolting thought to those of us who have always felt that the bonds between children and their parents are fostered not by sordid thoughts of gain but by the love and tenderness which God in His great wis- dom has planted in the breasts of all men. It needs and should need no arti- ficial stimulants. To Mr. Doyutr’s great credit may I say that he offered to with- draw his resolution rather than have it fall into the hands of those whose inter- ests are entirely selfish and commercial. Let me say here that so long as I may have any influence with reference to holi- day and commemoration-day resolutions I shall consider a commercial motive as a bar to my consideration of any such legislation. Biggest Story EXTENSION OF REMARKS or ‘HON. KATHARINE ST. GEORGE - OF NEW YORK IN THE HOUSE OF REPRESENTATIVES | Saturday, May 6, 1950 ' Mrs. ST. GEORGE. Mr. Speaker, un- dcr leave to extend my remarks in the Appendix of the Rrcorp; I include the. twelfth article by Mr. Frank Waldrap on the infiltration of communism in our, country: -: " Brécusr Stony _ (By Frank ©. Waldrop) . There ts in New York today a man who- once held the power of Russia in the palm of his hand. But he lacked. the killer in-. stinct that lives in all who were born to rule. , So as he fluttered and doubted a fellow townsman from his birthplace of Simbirsk Kicked: him downstairs and started a train of explosions, the end of which is not yet. . The man who had power and lost it was Alexander Kerensky, who still lives. The one who took power was Vladimir Ulyanov, alias Lenin, who died before he had a chance to enjoy it. These two adventurers from Simbirsk, now renamed for Lenin, collided as the last of the Romanov czars, Nicholas II, gave up his throne. It was a time of staggering upheaval. Mil- lions of Russian troops were being slaugh- tered by the machine-like precision of Kaiser Wilhelm’'s Germans. The Czar went to the front to take personal command, and while he was away a weird magician from Tobolsk in the Russian back country came to prominence in St. Peters- burg. The magician was a ruined monk named Gregory Rasputin. Rasputin from Tobolsk was a bad man, but @ powerful magician. He got into the palace politics through claims that he could cure the heir-apparent to the throne of fits. And before anybody knew what he was about he had become the most influential man in town. Lest you think that is exclusively the na- ture of things In a weak and disintegrating monarchy and that no other form of govern- ment suffers such ills, Just remember Wash- ington these 20 years past. And to parallel that, some murderous palace politics of the Communist regime in Russia. Chapters on both lie ahead in this series. A3331 The truth is that no matter what the form: of a government, none is ever any better than the men in office. The main thing to be said about forms of government is that for safety’s sake the men in office should be put there by the people and taken out on schedule, so that power of government cannot ever harden in any one group’s hands. Rasputin became such a power over the royal household in 1916-17 and his influence was so disruptive of the efforts of a few to swing Russia toward orderly government, that a handful of aristocrats under the leader- ship of Prince Felix Yussupov poisoned, stabbed and finally took him out and threw him in the river. He was hard to Kill. But as soon as he was dead, riots, strikes and mutinies broke out all over, Parliament ignored the royal household and set up a temporary government on its own, with Alex- ander Kerensky as minister of justice, repre- senting the Socialists. While all this was going on, in the period from September 1916-March 1917, a gigantic war was roaring in northern France and along the edge of Russia. Far over the sea in Washington a United States President named Wilson itched and: edged toward the edge of the volcano. He had run for reelection in 1916 with the slogan “He-kept us out of the war.” And now that he was safely elected, the slogan became “Freedom of the seas.” . : - That, with other heip, got the United States of America into the war against Germany | on April 6, 1917. . And while all that was happening the man who called himself Lenin was hiding in Zu-: rich, Switzerland, with a handful of other exiles from Russia, futilely and hopelessly. watching the world turn upside down.: > But suddenly Lenin found himself on a: railroad train ima sealed car witha handful: af fellow conspirators on the way home. The German general staff had been struck with. the bright idea that if the United ‘States of America was coming in against them on one* side they had better do what they could to: knock Russia loose from the other. They classed Lenin as a poisonous flea who, if they could only get him in the Russian: ear, might be able to do some damage. So’ they sent him into St. Petersburg with, so some historians say, $10,000,000 in gold and & nod and wink. In the meantime, Kerensky had risen to the head of the government and as Prime Minister was trying to wage war abroad and build socialism at home. Lenin arrived in St. Petersburg, by then renamed Petrograd, April 16, 1917. By No- vember, with German help, he had bounced Kerensky, stopped the foreign war with an armistice that was put into a treaty of peace by March 3, 1918, and had started a monu- mental civil war at home. Not for one moment in all that did he or his gang ever hold a popular majority of votes, where there were any. Indeed, Lenin had nothing but contempt for what he called parliamentary feeKleness and he openly said so. Hoover Answers 10 Questions on the FBI EXTENSION OF REMARKS HON. GEORGE H. WILSON OF OKLAHOMA . IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. WILSON of Oklahoma. Mr. Speaker, under unanimous consent, I include in the Appendix of tie Recorp
A3332 the very enlightening article published in the New York Times magazine for April 16, 1950, entitled “Hoover Answers 10 Questions on the FBI.” I am certain that all good American citizens are deeply concerned over na- tional security and are vitally interested in the increasing importance and scope of the activities of the FBI. Inoted with great interest the timely questions by the New York Times magazine as put to Mr. J. Edgar Hoover, Director of the FBI, and his very cogent answers to these 10 questions about this great Federal law-enforcement agency’s role. The questions and Mr. Hoover’s answers are presented in full. They follow: Hoover ANSweERS 10 QUESTIONS ON THE FBI (By J. Edgar Hoover) (The increasing importance and scope of the activities of the Federal Bureau of In- vestigation have been underlined by concern over national security and the safeguarding of atomic secrets. On the one hand, Direc- tor J. Edgar Hoover has asked that the FBI staff be expanded to meet duties imposed by America’s atomic-hydrogen bomb pro- gram; on the other hand th> FBI and its methods have been criticized as a threat to individual freedom. For these reasons the New York Times magazine put to Mr. Hoover 10 questions about the Federal law-enforce- ment agency’s role. The questions and Mr. Hoover’s answers are presented here.) 1. What is the chief job facing the FBI today? The chief job facing the FBI today is to afford the maximum protection to the Amer~ ican people. This obligation, of course, varies from day to day. The FBI by con~ gressional enactments and Presidential di- rectives, is responsible for investigating vio- lations of specifically assigned Federal laws; the collection of evidence in cases in which the United States is or may be a party in in- terest and performing other duties imposed by law. These duties, naturally, place heavy and continuous responsibilities upon the FBI. The work of the FBI, in general terms, is twofold: protecting the Nation against the violation of Federal laws and the subversive agent. In the early years of the FBI, in fact up until about 1939, the chief focus of the Bureau was directed against the criminal— the vicious hoodlum, the John Dillinger, the Alvin Karpis, who was intent upon advanc- ing his own predatory interests at the ex- pense of the innocent citizen. However, by 1939-40, a new national men- ace began to manifest itself—the danger of fifth column intrigue. Since that time, the FBI has directed increasing attention to in- ternal security problems, until today a large proportion of our staff is assigned to security work. The nature of the mendce has changed from nazism to communism, but the danger to America’s welfare remains the same. * 2. Whom does the FBI investigate? On what basis does it determine who shall be investigated? Is a letter of accusation enough to cause an investigation? Is the accuser investigated too? Since I assumed the directorship of the FBI in 1924, the basic principle has been fol- lowed that the FBI will investigate only upon the presentation of a complaint or informa~ tion which, if true, constitutes a violation of Federal law coming within our primary jurisdiction, or a matter assigned us by higher authority. Obviously, we must be on the alert for those acts for which we are responsible. At no time, however, will we investigate unless there is a factual basis or unless we are di-« rected to do so by higher authority. For example, we have the responsibility of in vestigating alleged violations of the anti- trust laws when the Antitrust Division of the Department of Justice so requests; vio- lations of civil rights when so directed by the Civil Rights Section of the Department’s Criminal Division; accidents involving pos- sible Federal liability under the Torts Claims Act when so requested by the United States attorney; and fraudulent claims against the Government when so requested by the Claims Division of the Department, along with scores of other matters the general public seldom considers. As a public-service organization, our doors are open to any citizen or person in the United States who wishes either to make a complaint or furnish information. A letter, signed or anonymous, if it sets forth infor- mation which, if true, comes within our jurisdiction, receives consideration. Action to be taken must be decided on the basis of the facts in each case. In one instance one of our field offices re- ceived an anonymous letter alleging that a certain individual had transported stolen cars interstate. We investigated. The re- sults: Sixty stolen automobiles recovered in three States, the thief identified, evidence collected, and eventually the culprit con- victed in Federal court, An anonymous let- ter started the entire investigation. In another case a police department ad- vised the FBI that a certain Federal em- ployee had signed a Communist nominating petition. We investigated under the provi- sions of the Federal employee loyalty pro- gram. An FBI laboratory technician com- pared specimens of the employee’s hand- writing with the signature on the Commu- nist nominating petition. The Government employee’s name was there, but he was not the signer. Subsequent investigation con~ clusively established his loyalty to our Gov-= ernment. The facts in each case must determine how much credence should be given the individual who makes the accusation. If, for example, we received word from John Doe that another named person was @ spy we would want to know the basis for John Doe’s accusation. Was he in a position to possess the facts he related? What was his motive? Did it result from malice or a grudge, or was he fulfilling the responsibilities of citizen- ship? The facts in each case must deter-~ mine whether he would or would not be in- vestigated. 8. What facts does the FBI seek in the way of information about a man’s political, so- cial, and economic beliefs? The facts vary in each case. The first step is to establish the truth or falsity of the complaint. If true, then there are certain basic facts which are necessary under rules of evidence to sustain a charge in court. With the tremendous volume of work, our investigations are limited to fundamentals. An automobile theft case is one thing, while an espionage ring is another. In the latter we want to know everything the spy does, who his contacts are, where he gets his in- formation, how he transmits it; in fact, we would be derelict if we did not know every- thing he did from the time he was identified until the investigation was concluded. The responsibility of the FBI is to secure the facts. We do not make decisions as to prose- cutive action or recommendations as to whether an individual is suitable or unsuit- able for Federal employment. The FBI is concerned with acts and deeds, not thoughts or beliefs. A man is entitled to think and to believe what he desires. If, in the course of the investigation, however, a witness states that an individual advocates the overthrow of our Government by force and violence, the FBI will want to know what he has done to carry out his threats of force and violence, Whether he is a Republican, Democrat, or Progressive is none of our cons cern, APPENDIX TO THE CONGRESSIONAL RECORD In one case, we received a report that a Federal employee had been a card-carrying member of the Communist Party. The in- vestigation established the accuracy of the original allegation. In fact, we even secured the number of his party card. He was not only known but active as a Communist. The investigation, however, revealed additional data. The Federal employee once had been active in a union. With an associate he had joined the Communist Party for the pri- mary purpose of worming his way inside the party clique—to obtain the information which eventually rid the union of Commu- nist domination. The investigation re- vealed, clearly and vividly, the true loyalty of the Federal employee. Either through design or misunderstand- ing, there are those who say that the FBI is invading the realm of thought. Each time this charge has been raised we have endeavored to secure the facts. Invariably the accuser, when asked for specific details, answers in neubulous and vague terms. He is unable to produce the proof to substan- tiate his charges. Recently one reviewer wrote—attesting fiction as fact—that FBI agents has asked him if a person under in- vestigation read a certain publication. When asked for the name of the agent, the writer replied the incident had occurred so long ago he could not recall the name. Another individual berated the FBI be- cause of the manner in which we had in- vestigated him. The fact of the matter was he had never been investigated by the FBI. We would gladly have told him if he had been sufficiently interested in the truth to have inquired. The FBI is interested in actions, not thoughts; in deeds, not beliefs; what a man does, not what he thinks. 4, What is your attitude about the dis- closure of FBI files in court or before con- gressional committees? The public record clearly proves that the FBI, because it does matntain confidences, has been able to develop valuable sources of information which have a direct bearing on the internal security of the Nation. The disclosure of the contents of the files by the FBI would reveal confidential pro- cedures and techniques. If this material were spread upon the record, criminals, for- eign agents, subversives, and others would be forewarned and would seek methods to carry out their activities by avoiding detection and thus defeat the very purpose for which the FBI was created. Each exception under- mines this principle, establishes a precedent, and would inevitably result in a complete collapse of a traditional policy which has proven its soundness. A disclosure of FBI reports would reveal the identity of confidential sources of in- formation and, if it did not place the lives of such persons in actual jeopardy, it would certainly ruin their future value for eifec- tiveness. I would not want to be a party in any ac- tion which would smear innocent individ- uals for the rest of their lives. 5. What do the FBI investigative files con- sist of? To whom are they available? An FBI investigative file consists of com- munications pertaining to the investigation, instructions issued by both the Department of Justice and the headquarters of the FBI to its field offices, the reports of its agents, and any other data pertinent to the in- vestigation. FBI files are confidential by ruling of the Attorney General of the United States. Data contained in the files are for official use, which has been defined by higher executive authority. Investigative reports are fur- nished other Government agencies when the investigation pertains to these agencies, without recommendation or evaluation, By virtue of Presidential directives charging the FBI with the responsibility of coordinating: information pertaining to the internal secu
APPENDIX TO THE CONGRESSIONAL RECORD rity of the United States, information of in- terest to other Government agencies is fur- nished them. The FBI also has the duty of answering requests for information from other agencies, The FBI fingerprint files contain the fin- gerprint records forwarded to us by local law= enforcement agencies, the Civil Service Com-~ mission, and other Government agencies. The technical files contain only the best set of fingerprint impressions, all other finger-~ print cards and resulting correspondence pertaining to identification matters are kept in folders. Data are placed in the finger- print files only when they relate to identifi- cation by fingerprints, such as dispositions following arrests, wanted notices, missing- person notices, and dispositions from the Civil Service Commission and other Govern-= ment agencies. «@, Are there files on Members of Congress? No. Investigative files are not maintained on anyone, in or out of Congress, unless there has been a complaint coming within the pur- view of our investigative responsibilities. The FBI does not maintain files on individ- uals or organizations, irrespective of posi- tion, unless in connection with the discharge of our responsibilities imposed by law or ad- ministrative direction. Of course, we have correspondence files, as does any other organ- ization. 7. If a person accused of disloyalty has been cleared, does the FBI destroy the file? The FBI does not destroy files unless they are obsolete and then only with the permis- sion of the Archivist of the United States. So-called housekeeping records as defined hy the Archivist are destroyed after they have served their usefulness. vestigation has been made, even though the complaint was found to be untrue, it would be improper and illegal to destroy the file. The innocent person should have the protec- tion of a record of the facts which estab- lished his innocence. Should a future sim- jlar complaint arise, we would have the bene-~ fit of previous information secured, which would make a further investigation unnec- essary. As a matter of fact, we receive in- formation daily which on the surface would require investigation but a check of the files reveals previously received data which pro- vide a logical explanation. In one case, a question arose concerning the loyalty of a Federal employee. Our files revealed that in 1942 he had been investi- gated as a result of disclosures by a con- gressional committee. That file contained not only the employee’s complete explana- tion but a verification of the facts. We saw no need for further investigation. The fact that a man has been proved innocent of charges is even more important in the interest of decency and fair play. Should old charges be revived in the future, the Government employee should be pro-~ tected by a retention of the file. The ques- tion of maintaining a newspaper morgue might very well have been asked. In fast- breaking stories the over-all facts and con- clusions frequently are changed through fur- ther verification, yet I have never heard it argued that a newspaper should destroy its morgue. 8. To whom is the FBI responsible? Who reviews its work? The FBI is primarily responsible to the Attorney General and through him to the President. It is also responsible to Congress and, in fact, annually must justify its activ- ities before appropriations committees when the Congress considers its appropriations. needs. In addition, the Bureau of the Budg- et, representing the President, periodically checks our fiscal operations. The FBI is not a policy-making organ- ization and it does not make recommenda-’ tions as to action to be taken. It reports facts. In criminal and civil cases, investi- gative reports are submitted to the United States attorneys and to the appropriate offi- Once an in- - cials of the Department of Justice. When these cases go into court, the activities of the FBI come under the scrutiny of the courts as well as defense counsel. In connection with loyalty investigations, its reports go to the various agency loyalty hearing boards and are subject to later re- view by the Civil Service Loyalty Review Board. The work of few Federal bureaus is subjected to as much review as that of the FBI. 9. Does the FBI employ the use of wire tapping? If so, what is lts justification? The FBI does utilize wire tapping as an investigative technique, pursuant to pol- icies established by the highest executive authorities in the land, but only under strict- est control and supervision. In each in- stance, the express authority of the Attor- ney General is received in writing. Wire tapping is employed only in matters involving internal security or when human lives might be in jeopardy. Information secured as a result of wire tapping is not used as evidence and is not divulged pub- licly by the FBI except under force of ju- dicial compunction, over the objection of the Government. The late President Franklin D. Roosevelt, in a widely publicized letter dated February 26, 1941, said: “I do not believe it should be used to prevent domestic crimes, with possibly one exception—kidnaping and extortion in the Federal sense. I have no compunction in saying that wire-tapping should be used against those persons, not citizens of the United States, and those few citizens who are traitors to their country, who today are engaged in espionage or sabotage against the United States.” A long line of Attorneys General, including Supreme Court Justices Robert H. Jackson and Tom C. Clark, along with former Attor- ney General Francis Biddle, has consistently approved the use of wire-tapping for the purpose for which it is employed by the FBI. Former Attorney General Clark ob- served in a public statement on March $1, 1949: “The statutes and decisions of the courts, including the Supreme Court, con- cerning wire-tapping do not prohibit the tapping of wires, but rather the divulging or publishing of information and use of it as evidence when obtained by wire-tapping.” 10. What answer do you make to the charge that the FBI has too much power in our democracy; that recent developments, in which innocent persons have been accused on the basis of FBI information, are danger- ous to civil liberty? The FBI is the investigative arm of the Department of Justice. As a fact-finding agency, it investigates violations of Federal jaws and presents its findings to the Attorney General, his assistants, and the United States attorneys. The FBI cannot file a complaint against a person without first presenting the facts to a United States attorney. In the event prosecution is authorized, then a judge or a jury passes upon the guilt or innocence of the accused. Prosecution is not a matter within the jurisdiction of the FBI. As a matter of fact, the rules of the FBI require that FBI agents shall not recommend prosecution or urge that prosecution be dropped. In the case of arrest and seizure of eyi- dence, the FBI operates within the frame- work of law. Otherwise, an appeal may be made to the courts. Our governmental system is one of checks and balances. To this end, the instruments of government, including the FBI, are zeal~ ously watched by the executive, the judicial, and legislative branches in order to insure that they will not go beyond the well-defined limits of their existence. As previously pointed out, the FBI must justify its every activity to the Attorney General, his assist- ants, the President, the Congress, and the American people. A3333 One of the greatest protectors of our dem- ocratic way of life is the free press in America. The press certainly is alert, and justifiably so, to disclose an improper abuse of power by the FBI or any other Govern- ment agency. -The judiciary remains the protector of our way of life. If FBI activity were totalitarian in nature, the courts would be appealed to with dispatch. Prosecution of FBI cases takes place in the courts. During the 1949 fiscal year the total number of convictions in all FBI cases was 8,415. Of all persons brought to court in FBI cases, 97.2 percent Were convicted; 93.9 percent of the convic- tions were based upon pleas of guilty. One of the best guaranties that the FBI will continue to function within a frame- work of law stems from the character of FBI men antl the training they receive. They would do everything in their power to prevent the FBI from becoming a totali- tarian, power-drenched organization. The typical FBI man is, in turn, a typical Amer- ican. He is just as anxious to see to it that American principles are preserved, either in FBI investigative activity or in any other phase of daily life, as he is to continue to enjoy the freedom incident to democratic living. The FBI is a servant of the people. A law- enforcement agency becomes too powerful when it is the master of the people. This condition does not exist in the United States. : ‘The FBI makes no accusations. In pos- ing this question the author undoubtedly had in mind the recent case in Washington where, upon the motion of defense counsel, a Federal judge ordered certain FBI reports introduced into evidence. The record dem~ onstrates clearly that the prosecutive offi- cials bitterly opposed the introduction of these reports. An investigative report of the FBI is like a newspaper reporter’s note- book. In the course of covering a story, the well-trained reporter secures much in- formation; some true, other portions rumor, gossip, or hearsay. In writing his story he uses only the material which is verified. In many files the number of reports runs into the hundreds and any one report will not give the complete truth. In fact, all the data in that report, furnished by some person interviewed, may later be proved un- true, As one very fair and astute Washington columnist stated: “The press has something to answer for in this connection, it seems to me, The raw material of the FBI re- ports was translated into sensational head-~ lines with little indication for the guid- ance of the reader that these were not con- clusions reached by the FBI but merely the stuff to be ground through the security mill, More responsibility all around would be helpful.” The record of the FBI is well known. We are a human organization functioning In a " field where the possibility of error is high, where temperament is sensitive and the se- curity of the individual is paramount. We have sought to discharge our responsibilities with impartiality, fairness, and regard for nothing but the truth. The men of the FBI are taught that it is even more important to establish innocence than guilt. The FBI is an organization built upon merit and personal integrity. In the final analysis, the character of the special agents of the FBI and their record is the guaranty that the innocent have no basis for fear. They come from every section of the coun- try and are products of the Nation’s col- leges and universities. The FBI stands to- day as a service institution, dedicated to the protection of the welfare and security of the American people. The magnitude and vital importance of our tasks lend us strength, courage, and conviction to do ever a better Job.
A3334 Additional Beds for Veterans’ Hospitals EXTENSION OF REMARKS HON. GLENN R. DAVIS OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. DAVIS of Wisconsin. Mr. Speaker, in amplification of my statement on the ficor of the House on April 25, when H. R. 5965, directing the President to provide space for 16,000 additional hospital beds in veterans’ hospitals was before us, T sei forth here an enlightening article which appeared in the Washihgton Eve- ning Star on April 28: Mevica Crrer SAyvs VA Can’r Uss More Breps (By Martin S. Hayden) The angry medical boss of the Veterans’ Administration wishes that more Congress- men, chamber of commerce heads, and American Legion commanders knew what a hospital is. . Dr. Paul B. Magnuson says that, if they did, he would not be asked to seek doctors to work in Dublin, Ga., and Battle Creek, Mich., and there would not be talk of giving him 16,000 more veteran beds that he could not operate, if he had them. In a blunt interview, the one-time North- western University surgery head, now VA Medical Chief, had his say about “pouring taxpayers’ money down drains under the guise of helping veterans.” Specifically, he slapped the election-year alacrity with which the House Monday pushed through Repre- sentative RANKIN’S $237,000,000 bill to rein~ state the 16,000 beds pruned by President Truman from the VA hospital-construction program. “I couldn’t use 16,000 more beds if they gave them to me tomorrow,” Dr. Magnuson protested. “Some folks have the idea that all you do is spend $15,000 to provide one hospital bed and everything is fine. They forget that, after the buildings are open, it takes $12 a day per patient to fill the bed; that would be $192,000 a day, or $70,000,000 a year for 16,000 beds. “And then,” says the doctor, “‘there is the matter of hiring doctors, nurses, and tech- nicians. “Do they want 16,000 boarding-house beds, or hosptals?” he asks, “If they want hos- pitals, it might be well to remember that it takes 1144 people in a hospital to take care of each patient, year in and year out, We have nearly 4,000 of our present beds empty for lack of staff.” That gets the doctor around to Dublin, Battle Creek, and other small communities where, he says, “Chambers of commerce and Legion posts raise hell till they get a vet- erans’ hospital.” Dublin, in the home district of Chairman Vinson, of the Armed Servces Commitee, now has its hospital: A modern 1,000-bed unit built by the Navy, 53 miles from Macon, the nearest city, and presented after the war to the VA. “We authorize use of 500 of the beds,” Dr. Magnuson says. “We've never been able to get enough staff to open more than 300, Dublin is a nice place, but we just can't find. hospital technicians, nurses, and doctors willing to move there. I took the bull by the horns and ordered 15 of our doctors down there and 8 promptly resigned.” ' In Battle Creek, Dr. Magnuson. is criticized for not grabbing up the 1,200-bed, $30,000,000 Percy| Jones Hospital, which the Army is about to close. “Another nice town,” Dr. Magnuson com-~ ments. “But look at its census of doctors: No specialists in anesthesia, skin, or plastics; one each in neuropsychiatry, urology, and orthopedic surgery; three each in internal medicine, pathology, and nose-throat-ear; and five each in surgery and X-ray. “Tf we asked those doctors for a guaranty of hours to help us, they would be too busy to give us a total of 10 hours a week. That would mean we would have to bring in a whole new staff and you just can’t get them.” At the opposite, and good, extreme, Dr. Magnuson points to the situation in San Francisco where the VA has a staff of only eight full-time doctors in a 430-bed hos- pital. The bulk of the work is handled by the Stanford and University of California medical school staffs. He would like more beds in such cities. “They are less expensive,” he says, “and the patients have readily available the finest specialized talent that science can produce.” Dr. Magnuson snorts at some of the things said by impassioned House Members during the Monday debate. Representative Eprrn Nourse RocErs, Re~ publican, of Massachusetts declared: “It is a cruel thing to prevent men who have fought for us and who were injured from receiving hospitalization.” “There is no such veteran,’’ answers Dr. Magnuson. “Any man disabled in the service can have a bed immediately and get the best medical treatment in the world. The only exception is when he insists on going to a specific hospital and refuses to let us send him where there is space available.” There is a 26,000-veteran waiting list for free VA beds, Dr. Magnuson admits, but all are veterans whose illness is in no way traceable to their service. Under old law, the VA may give notifica- tion for non-service-connected disability, provided there is space available. The rec~ ords show that, ever since Congress passed the law, it has poured out money to make space available and, of the 99,311 veterans actually hospitalized as of last February 28, two-thirds were for nonservice disabilities. Another objected-to congressional com- plaint was this, from Representative Dayron Puiiuirs, Democrat, of Tennessee: “Seriously ill veterans are being moved out of hospitals, many of them sent home to die.” “Bunk,” says Dr. Magnuson. “There has never been a sick man put out of a veterans’ hospital. Some have died after they went home. But death was started by Adam and has been going on pretty consistently ever since. We can fight it, but, but we can’t stop it.” ea What You Haven’t Been Told About China ‘ EXTENSION OF REMARKS HON. WALTER H. JUDD OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. JUDD. Mr. Speaker, under leave to extend my remarks, I include the fol- lowing article from the American Legion, written by Mr. and Mrs. Arthur Hart Burling, who were for years distin- guished members of the American diplo- matic corps with long service in China: Wart You Haven’r Bezn Top Asour CHIna (By Judith and Arthur Hart Burling) Should the United States recognize Com- munist China? Those who are pressing for recognition claim that it is essential for us to have a listening post. How effective can a APPENDIX TO THE CONGRESSIONAL RECORD listening post be in any Communist-domi- nated country? Even before the war foreign correspondents in China concentrated in the large centers—Shanghai, Peking, Tientsin, and Canton—and rarely ventured into the rural areas. Does anyone really believe that now, under Communist rule, Americans will be permitted to travel and talk freely to the Chinese farmers? It 1s chiefly due to the absence of first- hand information about the interior of China that the Reds have had such over- whelming success with their all-out propa- ganda attack of the last 10 years. Masters of double talk, the Communists (and their fel- low travelers and stooges) have made use of words like agrarian reform, liberation, de-~ mocracy, people’s government—words which fell pleacvently on American ears—to mask wha. has been nothing but the brutal drive for power of a ruthless minority. One successful propaganda line has been that this is a spontaneous revolution of the people. But the people who joined the Communists were chiefly students, intellec- tuals, and groups of factory workers in the cities—many of them fired by ambition to become the commissars of the new order. These represent a very small percentage of population, since from 80 to 90 percent of the Chinese are farmers, and not more than 10 percent live in cities and large towns. Many of those we call farmers would be termed peasants in Europe, or other parts of the world, but that word has no meaning in China, because the Chinese have not lived under a feudal system. in the last 2,000 years. The Chinese farmer has not been a serf, but has owned his own piece of land. Small and poor his holding may have been, but it was his own. He has been a freeman. More than half of the Chinese farmers were owners, less than one-third part owners, and only about 17 percent tenants, Another successful propaganda line has been that the Communists are dividing up the large holdings. The main flaw in this picture is that there have been very few large holdings. The average farm size is about 4 acres (compared with an average of 157 acres in the United States), and this figure includes the 7 percent of what are called very large farms, of which the average size is only 13 acres. The farmers comprise the vast bulk of the people of China, and their response to com~ munism has been demonstrated by the mil- lions of refugees who abandoned their farms and fled before the advancing Communists into the Nationalist areas. There has never been any instance of Chinese fleeing from the Nationalist areas into the sections con- trolled by the Reds. At ome time it was estimated that there were more than 38,000,~ 000 of these refugees who had taken to the roads. Many were middle-class people, land- owners, and home owners, who had reduced themselves to beggary because they had heard what happened to other villages when the Communists took over. The only reason. why there are no longer these pitiful floods of homeless refugees on the roads, is simply that now there is nowhere for them to go. They are trapped. What has life been like for those who live in the rural areas since the Communists seized power? This is the way in which the Reds are carrying out their much-publicized program of agrarian reform: In each district (hsien), they appoint five or seven Communist directors. These are chosen from, the large groups of plain-clothes Communists who accompany the Red army, and who are known as politicals or politi- cal organizers. Their task is to completely terrorize and subdue the villagers, At least half of the directors must come from prov< inces other than those in which they op- erate to insure that no partiality is shown,
APPENDIX TO THE CONGRESSIONAL RECORD These directors go into every village, how- ever smal], and select one or two young men as their representatives. Those chosen must have no profession, trade, or steady work. Nor must they own a farm or property of any kind. In other words, they must be the men whom the farmers have looked upon as ne’er-do-wells, Their main quali- fication 1s that they be maladjusted, violent men who bear a grudge against society. These young men are then told just how many people (50, 100, 200, or more, accord- ing to the size of the population) must be liquidated as an example to the rest of the village. They make up this list of victims, in con- sultation with their cronies, and this gives all who have a quarrel with, or are jealous of a neighbor, a fine chance to avenge them- selves. When completed the list is handed to the Communist directors for approval. Then a village meeting is called, usually in the night. The word “meeting” strikes terror into the heart of every man, woman, and child. Everyone must be present, and nobody Knows when or whether his will be the name that turns up in this gruesome lottery. The Chinese Communists have no legal code of any kind. The Victims are not told beforehand what they are accused of, or even that they are accused. There is no defense and no appeal. Sentence is passed and car- riled out on the spot. When the whole village is assembled, the village representative takes the chair, with the Communist director sitting beside him to tell him what to do, and to read the con- fession This has been prepared before the accused has even been told what the charge against him is. The village representative then stands up, calls out the name of the victim, and waits for the director to read the long recital of all the misdeeds of which the man is ac- cused. The conclusion is always a statement that this wrongdoer must be punished, followed by the decision as to whether he is to be shot or beaten to death. Shootings are few, because the reds are told to save their bul- lets for fighiing, and also because they know the Chinese now say: “A man is lucky if he is shot to death.” The sentence usually runs: “This guilty man is condemned to be beaten to death. Any objection?” Nobody dares to speak. The village representative then announces: “Everybody is in agreement.” The real reasons why the victims are se- lected include being a little more prosper- out and successful than others, knowing how to read and write, having a knowledge of the history of China, or knowing about the outside world, being too popular with* the villagers, or having their confidence. Such men, it is feared, might be able to influence the minds of the villagers against the Reds. The trumped-up charges against the con- demned men are fantastic, and are appar- ently not even intended to be taken se- riously. A typleal accusation is the follow- ing: “Fifty years ago such and such a family was the tenant of your father (or grand-~ father or great-grandfather). For the new year festival, this family gave your ancestor a gift of a couple of chickens, or a dozen eggs. Now let us reckon up and see how much wealth the family of the tenant have lost by this transaction.” The director fixes a value for the gift, takes the highest known rate of interest, compounds it, and then states: “By now I find you have cheated this family of such and such a sum.” Care is taken to arrive at a figure far greater than all that the man and his family possess. Then comes the judgment: “You must give up all your family lands, all your money, everything you own, to repay part of this debt, As a punishment you will be beaten to death.” Then sentence is carried out immediately, and the whole family is forced to be present, but forbidden to weep or make any sound, Alterward the man’s wife and children are turned out to beg. It is a universal custom for the Chinese to exchange gifts at the new year. If a tenant gave a farmer a gift, he would, as a matter of course, give the tenant, in re- turn, something like a box of tea, or a piece of cotton cloth, or a dish of sweet cakes. This fact is, of course, not mentioned. Both logic and justice are completely out- side the range of these people’s courts. In one village in Honan a young man who was extremely populer with everyone was sentenced for some imaginary crime. But, because the people murmured angrily at the decision, the court decided to hang him up by the thumbs overnight, as a lesson that the Judgment of the Communists must not be questioned. Execution was to be deferred until the next day. Somehow, during the night, the young man managed to loosen the bonds and climb down. At the risk of their lives the villagers hid him and helped him to escape. When the Communists found that the young man had got away, they avenged themselves by having his mother and sister beaten to death. In one village in northern Kiangsu two old women grumbled to each other as they walked together: “Why must such things happen?” Both were seized by soldiers, and ordered to be beaten to death in front of the whole vil- lage as an example. While the execution was being carried out, the Communists cried: “You are beating these women too hard. You must be in sympathy with them, ond want them to have a quick death. Work more slowly, or you will be the next ones to be liquidated.” In spite of all this terrorism, there have been many rural uprisings. Whole villages, and the populations of whole areas, have been wiped out. The Red leaders publicly state that it Coes not matter how many millions are killed as long as all resistance is stamped out. Much has been made in certain quarters of the fact that the Nationalist soldiers had to take food from the farmers, whereas the Red armies do not take anything. The truth is that they do not need to, because food is requisitioned from the farmiers by the afore- mentioned politicals. So much is taken from them that many young men in the villages joined the Red army as the only alternative to starvation. On the other hand, the people in the rural areas, feeling that everything will eventually be taken away from them, cat up whatever they have—kKilling their pigs, chickens, and even their buffalo. This is bound to result in widespread famine in the near future. The Communists claim that they have di- vided up the land more equally. Actually they have taken land away from some farm- ers, and given it to others, frequently less competent people. Far from bringing about any agrarian reform the results are already disastrous. The farmers now figure out that the best they can hope for this year is 50 percent of the usual crop. There are many reasons for this, including the redistribution of land, the lack of buffalo, and the fact that too many women are left without husbands or grown sons. This last is due to the fact that vast numbers of men have been forced into the Red army, and also because so many villagers, about four to each combat soldier, have been compelled to accompany the Red troops and do their work for them. Then there is the lack of fertilizer, and of food for such animals as civilians still retain. One of the main necessities of the farmer is A3335 a supply of soya beans. These are used as food and as oil. The soya bean cake, after the ol 1s squeezed out, provides fodder for the cattle and pigs, and it is essential as fertilizer to supplement the droppings of the animals. Now the bulk of the whole soya bean cro> ** Seo ee-* p-way to Soviet Russia, causing v..ct « oc. + to Chinese agricul- ture. In addition every farmer now has to give one-third of his crop in kind (not in money) to the governrert, plus another one-third as a voluntary sti. u..un to the Red army. On top of all this they have to provide food for the soldiers, who are always well fed, especially for several days before they leave for the front, when they are siuffed up like prize turkeys. Above all there is the psychological factor. Everything now belongs to the government. Nokody 1n China has the right to buy or sell land. For the first time in their long history no man now owns his own piece of the “good earth.” There were never any robber barons in China. Even those few who had holdings of 10 or more acres did not steal them, or acquire them by conquest, but through hard labor and thrift of their ancestors. Now everyone feels that he has been robbed. Even those who had nothing before take no pride in their newly acquired little holding. They know it is not their own, and can be taken away at any moment. Thus the farmers no, longer have the incentive to wrest all they can from the soil. Anyway, they say, they are too tired to work hard during the day when they have to attend meetings almost every night. These meetings are not only for trials but for political harangues as well. Attendance is compulsory. : Bitterly resented by all the farmers is the ruling that, tn order to go from one village to another, they must obtain a road passport (lu t’iao), bearing their name, where they come from, and their destination. Since these aro issued by the village representative, who can seldom read, villagers have in some cases written false names and destinations on their passes and thus managed to escape from their district. Some of our informants have escaped from Communist China by this device. : Before the Communists began to have military successes, they promised the farm- ers such improvements that some of them, weary of their sufferings during 18 years of war and its aftermath, were inclined to wel- come the Reds’ arrival. They now say: “These people promised us a better life, but as soon as they got control they took the masks off their faces and we saw that they were devils.” Now the people in the rural areas know what communism means, and they say: “All we want is to be left alone without meetings, and without beatings, without passports, and without requisitions. We want to live peace- “ably and look after our own little farms.” Never before has a whole population so quickly turned against a new regime. In the rural areas practically all of the peo- ple are filled with hatred for the Reds. In one village after another, men whisper to their friends: “I live only for the day when some internal or external trouble will give me a chance to kill a couple of them my- self, with my hoe or sickle, or even with a big stone.” The people feel that their whole Mfe is now poisoned. Even stronger than the need for livelihood and security, ingrained in the Chinese mind for centuries, is the impor- tance of an ethical code, or correct personal relationships, of respect for their ancient civilization. All these the Reds are trying to destroy. They have changed all the text- books, and teach the children an entirely false version*of Chinese history and phi- losophy. As to foreign relations, they teach that America has always been the enemy of
A3336 China, that it was the United States that presented the infamous Twenty-one De- mands to the Chinese m 1915, and that America refused to fight the Japanese, so that Soviet Russia had to deliver them from the Japanese invaders. The firmest foundation of Chinese life has been the family, the respect of children for their parents. Now the Reds constantly preach that older people do not count, and that it is best for them to die or be killed off. Children are being trained from infancy to hate their parents, and to spy on them, as in all totalitarian countries. Of course a whole civilization cannot be wiped out in a day. The Chinese farmers are skeptical of propaganda, and many still have influence over their children. They tell them: “Now we are told that the Amer- icans are our enemies, A few years ago we were told that America was our best friend, that we had to risk our lives to protect any of their airmen who fell down amongst us, How can they expect us to believe that things change so quickly?” But as a new generation grows up, as the older people be-~ come more and more afraid to express their thoughts, the situation will inevitably de-~ teriorate. The idea of freedom will fade away. Even in the cities, and that is where the Communists have tried to make the best showing, there is no attempt to build up industry or improved standards of living. Factories are being dismantled in Shanghai, as they were in Manchuria. There is wide~ spread unemployment, and the people are told to go back to the land. Those who fol-~ low this advice find themselves faced with starvation, The students welcomed the Communists with much rejoicing, but now most of them are completely disillusioned. It is estimated that at least 70 percent have become anti-~ Red. A common saying among the students is that, as far as fulfilling their grandiose promises is concerned, the Communists have turned out to be only a paper tiger. “You put in your finger and make a hole, and in- side there is nothing but air.” As regards the factory workers, they are completely baffied. Forbidden tb strike, and forced to work 2 or 3 hours a day longer than before without any additional pay, they ask what benefits the Communists have brought them. “Of course you cannot strike, and you must be glad to produce as much and as cheaply as possible, because the fac- tories now belong to you” is the stock answer. “The factories may belong to us,” the men grumble, “but we would prefer to have enough food to eat.” The Communist Party in China numbers no more than 3,000,000—considerably less than 1 percent of the total population of 450,000,000. Few of the soldiers of the army are party members, although a Red political adviser is allotted to each 10 to 15 soldiers. Perhaps as much as four-fifths of the Red Army now consists of Nationalist soldiers who changed sides because they had no weap- ons or food, or because they were handed over wholesale when generals and governors of provinces sold them out. They have no reason to love the Communists. It is true that they are better fed than before, but they realize that the reds have no intention of demobilizing the arm even when the whole country is in their hands. ‘They know that they are expected to fight for Russia, and they do not want to spend all the best part of their lives as soldiers under the rigid Commie discipline. They want to be freemen again, to go home, to marry, to have a little piece of land that they can cultivate without interference. They would change sides again even more quickly than before if there were another party with efficient lead- ership. Throughout the whole country there is a strong third force of men arising who want to institute reforms and modernize the country, bué who also want China to be a land where men can live in peace and dig- nity. This third party includes all the bet- ter elements among the Nationalists, but is chiefly made up of men who have not been associated with any political group. Many of them were highly critical of the former government but are now even more pitterly opposed to the Communists. They say they looked for something better, not for some- thing far worse. These people are all looking, for efficient leadership, for moral as well as for material support. But without arms or some free centers of resistance they are helpless. It is not even possible to carry on guerrilla war- fare as it was during the Japanese occupa-~ tion. The Communists with their highly disciplined organization have infiltrated every part of the country. Unlike the Japa- nese, who concentrated on the large centers and the areas bordering the railroads, the Reds have a vise-like grip on even the small- est and remotest village. The Chinese all realize that they have been betrayed by the Communists with their high-~sounding slogans. They see that the Reds are able to destroy and tear down and exterminate, but unable to build up the economy. The people now know that their leaders take their orders from Moscow, and that they would be thrown out and replaced by other puppets, if they did not do exactly what they are told. China, 10 the Communist leaders, is not a land of human beings with souls and hearts and aspirations toward a better life, but simply a prize pawn. The destiny of China, as they see it, is merely to provide a vast reservoir of soldiers, and of slave labor- ers to be used, together with all China’s vast wealth of raw materials—coal, iron, tung- sten, etc——to enlarge and strengthen the war potential of the Soviet Union in its attack upon the rest of the world. If we recognize Red China, and to the Chinese recognition signifies approval, we Shall deal a body blow at the tens of millions who comprise this third force, and who are yearning to throw off the Red yoke and stand up again as freemen. The Chinese will then feel that they have no longer a friend or a hope in the world. And a whole continent will be delivered over to darkness. Excise Taxes Hurt You and Hurt Business, Too! EXTENSION OF REMARKS HON. T. MILLET HAND OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. HAND. Mr. Speaker, once again I demand repeal of the wartime excise taxes. They are completely unfair. They are an intolerable burden on the backs of the people who are forced to pay them and on the people employed in businesses hurt by them. At a time when business should be encouraged, the excise taxes are depressing trade and costing thousands of jobs. They help no one. They hurt everyone. These unbearable taxes were enacted during the war under the guise of being luxury taxes. Actually, they are nothing of the sort. They are a sales tax that hits the average American almost every time he turns around, ,ness distress springs from them, APPENDIX TO THE CONGRESSIONAL RECORD Think of it—a 20-percent sales tax on baby oil, light bulbs, handbags, luggage, and even wedding rings. Since when have such items been luxuries? The list of taxed items goes on and on—telephone service, train and bus tickets, movie tickets, bowling alleys, billiard tables, club dues, beverages, night clubs, and many others. The wartime excise taxes were due to end in 1948, but the President de- manded that they be kept on. I was one of only 35 Members of the House who voted against continuing them. Here is what I said at that time: These taxes strike at the masses of Amer~ cans when they buy the daily necessities of our way of life. They are a nuisance tax on the purchases of the people. Despite the high taxes of the rich, it is our average families, that, in total, supply most of the billions. Every word I said at that time has proved all too true, so I have continued my efforts to get rid of these taxes. On March 3, 1949, I introduced a bill to re- peal the tax on transportation, in an effort to stimulate travel to resort areas and other places. Twelve days later I introduced a second bill, which would have repealed the other wartime excise taxes. On July 27, and again on October 14, 1949, I took the floor of the House to denounce the excise taxes again and to demand their repeal. I am gratified that more and more Members of Congress are in agreement that the wartime excise taxes must go. I hope we can bring about their repeal without further delay, for the disastrous effects of the taxes are all around us, Only a few days ago the Commerce Department reported that 4,684,000 Americans are out of work—the highest since 1941. The head of the President’s Council of Economic Advisers said there is a 50-50 chance that unemployment will rise between now and December. One million boys between 16 and 24 are looking for work, and there is talk of re- viving the Civilian Conservation Corps of the last depression, Iam not contending that all of the un- employment is caused by excise taxes, but it is obvious that a good part of the busi. Iam told, for example, that the fur industry in many parts of the country has faced a tax-caused buyers’ strike for many months and is now in desperate condi- tion. Some firms have already laid off half of their workers and may have to jay off many more if the killing excise taxes are not lifted. One of the worst aspects of the excise taxes is that we pay them in addition to the thousands of other taxes that are levied on our everyday living. There are 150 taxes on a woman’s hat, 116 taxes on @ man’s suit of clothes, 100 taxes on a dozen eggs, and 151 taxes on a loaf of bread. When you buy a new car in the me- dium-price bracket, you pay about $400 in taxes. Think of how many more people would be taking vacations if they had some part of that $400 to spend on them. On gasoline there is an average tax of 644 cents a gallon. For most mo- torists, this comes to about $50 9 year.
APPENDIX TO THE CONGRESSIONAL RECORD Think of what this money would mean to the average American. The way to cut over-all taxes is to cut Government spending. The Hoover Commission estimates that three billion to five billion dollars a year can be saved merely through more efficient organiza- tion of the Government. In addition, huge sums can be saved by dropping un- necessary operations by the Govern- ment. These savings would show up where they are needed most—in the pocketbooks of our people, who are al- ready handing over more than one- quarter of their earnings to the tax col- lectors. The people are crying for tax relief. Congress must heed their pleas. I urge every taxpayer, every voter, every citi- zen to get behind the move to repeal the wartime excise taxes immediately. We should act premptly to help our people. River and Harbor Act of 1950—Flood Control Act of 1950 EXTENSION OF REMARKS HON. WILLIAM M. WHITTINGTON OF MISSISSIPPI IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. WHITTINGTON. Mr. Speaker, under leave to extend my remarks in the ReEcoRD, I include the following address which I delivered at the fortieth annual convention, National Rivers and Harbors Congress, Washington, D. C., Friday, March 24, 1950, to wit: River AND Harzor Acr or 1950—F1Loop Conrrot Act or 1950 The rise and fall of civilizations through the centuries have been largely determined by the conservation and utilization of nat~- ural resources, The misuse of land is a warning that the bounties of nature are not inexhaustible, and that once exhausted, it is difficult to replace. The pioneers of America may have had both land and water to misuse and to waste, but their descendants are not so fortunate. The natural resources of the United States enhanced by science and in- vention are the foundation of the unprece- dented production in World War II that made our country the most powerful in history. Water gives life and must be conserved. Where it is scarce, it must not be wasted. Where it overflows, the overflows must be curbed. Planning is most important. The Spaniards came to the New World in search of gold, but they lost thelr empire. The Pil- grim fathers came to Plymouth Rock in search of freedom. They won their freedom and their descendants won their independence, STREAMS AND LAKES Nothing in nature is more interesting to me than streams and lakes. They appeal to poets. They are the inspiration of artists. They are useful to the historlan. They are the delight of sportsmen. They invite lovers to stroll along their banks. They are attrac- tive to the writers of fiction as well as of verse. They appeal to the engineer as he dreams of building and ministering unto man. Above the streams and lakes are the sources of both; there are the brooks and there are the forests that have been aptly termed the cradles of rivers. Walking beside the still waters of lakes appeals to me, and nothing is more delightful than to roam through the green pastures of valleys. As I linger along rivers my thoughts, as I have dreamed for years, always turn to the improvement of rivers and to the protection of valleys. Noth- ing intrigues me more than: “The journey of the raindrop to the sea.” SOLID FOUNDATION The Corps of Engineers have been con- structing river and harbor works since 1824, Flood-control improvements had a small be- ginning with the organization of the Mis- sissippi River Commission some 70 years ago. The Flood Control Act of 1928 declared that flood control is a national problem. The authorizations under that act were limited to the lower Mississippi River and to the Sacramento River. The act of 1936 imple- mented the declaration, and for the first time a national policy of flood control was proclaimed by the Congress applicable to all of the rivers of the country. The founda- tion of the policy is that in all improvements the benefits must exceed the costs, The flood-control works and the river and harbor improvements of the United States surpass those of this or any other country. No nation has made more or comparable progress in flood control and river improve- ments than the United States. RECLAMATION Another national policy was adopted in 1902, Reclamation was authorized. Prog- ress has been notable. The deserts have been reclaimed. Waters are being conserved. The program is sound. COOPERATION AND COORDINATION » Under the guise of reorganization it is now asserted that there is not cooperation and coordination between the work of the Army Engineers and the Bureau of Reclamation. Let the record speak. A great flood is being safely carried down the Mississippi River today. To protect Cairo and southeast Mis- souri there was coordination between the TVA and the Corps of Engineers. . Cooperation obtains between the Corps of Engineers and the Bureau of Reclamation along the Missouri River. There is no oc- casion to supplant the work of the Corps of Engineers and the Bureau of Reclamation by the establishment of an administration along any river valley, DISCRIMINATION IN LAWS I am not saying that our flood-control and reclamation laws are perfect. I empha- size that they are both on a solid founda- tion. Much of the criticism that now ob- tains, however, can be eliminated by the Congress of the United States. The remedy is not to create administrations, but the for- ward step in legislation is for Congress to eliminate the differences in the laws with respect of floo’ control and reclamation. I believe that such legislation will do much to defeat the authorizations of expensive administrations. Congress should amend existing laws to provide that in evaluating benefits the same rate of interest should obtain, the same charge for the disposal of power should be provided, and the same system of costs and benefits, with allowance for essential differ- ences that may be involved, should obtain jn both reclamation and flood control, and the discrimination in existing laws between flood control and reclamation, particularly with respect to amortizations and with re- spect to the disposal of power, should be abolished. The two agencies have grown older, and with age they have grown more sensible. Dissension will be eliminated, expansion will be promoted, and new agencies will be defeated by the passage of Congress of laws that will prevent and eliminate the funda- mental differences that now obtain between reclamation and flood-control authorizations and construction, (A3337 APPROPRIATIONS Formerly appropriations for flood control and rivers and harbors were contained in the annual appropriations for mulitary affairs. Some years ago separate bills were provided. The bill for river and harbor and flood- control appropriations is now called the Civil Functions Appropriations Act. During the current session, for the first time, the Com- mittee on Appropriations in the House of Representatives has determined to submit one over-all appropriation bill for all of the agencies and the departments of the Govern- ment. That bill has been reported by the committee It will be considered by the House within a dew days. It is an experi- ment. A one-package bill should be of bene- fit with respect to balancing the budget. Departments can be more familiar with ap- vorcpyiction: for other departments. I trust ilar .ne ove-package bill will be successful, Such a policy obtains in the British Parlia- ment. I emphasize, however, it is an experi- ment in the United States. I am appre- hensive of delay The members of this or- ganization should be on guard. The bill as reported reduces materially the recommenda- tions of the President of the United States for the next fiscal year. It is important that the members of this organization contact their Senators and Representatives and urge that while river and harbor and flood-control projects should share in any reductions es- sential to balancing the national budget, the budget should not be balanced at the expense of river and harbor and flood-control projects. All should share alike. I must speak frankly. The report on the pending appropriation bill is critical of the Corps of Engineers. That criticism is not deserved. No funds for planning are pro- vided. The Corps of Engineers are criticized for increasing the costs of projects. Such increases are not their fault. They result from the increasing costs of labor and of materials. Costs of construction have in- creased, ’ The preliminary examination is to deter~ mine whether or not a project is feasible. In the ‘final plans for construction, in order to protect lives and property, to promote navigation, and to develop power in the pub- lic interest, changes are made, but they are made upon the request of Senators and of Representatives of all interested communi- ties. The dams should be strong enough to withstand the waters stored behind them. The floodwalls and the levees should protect lives and property. The work should be per- manent. Plans for adequate construction are imperative. The report, on the one hand, criticizes constructive planning and adequate puilding. On the other hand, it is proposed to deny additional funds for planning. The work of the Corps of Engineers will be ham- pered. Adequate appropriations for planning are essential. The members of this organi- gation should not overlook contacting their Senators and Representatives to urge that funds for adequate planning be appropriated, and that solid and substantial works be con- structed. AUTHORIZATION ACT OF 1950 There is another matter that is of vital importance to the country. The House Committee on Public Works, after full hear- ings, reported probably the most construc- tive flood-control and river-and-harbor bill ever submitted to the Congress. It provides for increased authorizations in river basins. It promotes new projects for both flood con- trol and rivers and harbors. All projects were carefully screened. The bill was passed by the House after full debate and after much opposition, on August 22, 1949, by the overwhelming vote of 202 to 1. It was a great victory, but the members of this or- ganization and other sponsors for river and jharbor and flood-control improvements must not rest upon their laurels. The bill jhas been pending in the Senate for months.
A3338 It was there before the last session ad- journed, The advocates of river-and-harbor and fiood-control authorizations have done their best to obtain consideration. I am glad to say that I understand the bill will be considered by the Senate in the next few days. I trust that it will be promptly passed, and approved by the President. CORPS OF ENGINEERS No agency of the Government has ever wrought better than the Corps of Engineers. George Washington, himself an engineer and a great administrator, provided for the construction of nonmilitary works by the Corps of Engineers 175 years ago. They are the servants of the Congress, the elected representatives of the people. They are se~ lected and appointed to West Point by Sen- ators and Representatives. The Corps is selected from the high men of the class. They take postgraduate courses after gradu- ating from West Point. No engineers are better trained. They are prepared to meet the challenges of peace as well as of war. They are equipped for emergency and for disaster. They respond when there is an ex~ plosion such as occurred at Texas City. They are on the job when cities, States, and regions are snow-bound. They respond to rehabilitation from destruction by hurri- canes and storms along the oceans and along the Gulf. They are ready wherever disaster strikes and wherever emergency calls. They serve the people of the United States in rain and in sunshine, in prosperity and in adver~ sity. They should be encouraged. The civil functions of the Corps of Engineers must be preserved and strengthened. They should not be stripped of these functions. They should remain in the Department of the Army. It is an established agency. It is doing an outstanding job, It would be a na-~ tional disaster if the Corps of Engineers were transferred from the Department of the Army, or if they were deprived of their civil functions, . The members of this organization should be on guard. They should take advantage of this annual meeting to contact their Sena- tors and Representatives and urge that the planning and construction of river-and-har- bor and flood-control works should continue to be under the supervision of the Corps of Engineers in the Department of the Army. They have a record that is untarnished and unexcelled. Their work should be continued. Their arm should be strengthened. There is no more important function of the Gov- ernment than promoting the improvement of our rivers to protect the lives and prop- erty of the people of America. Rent Control EXTENSION OF REMARKS HON. SIDNEY R. YATES OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. YATES. Mr. Speaker, yesterday, during the debate on the 1951 appro- priation bill, I pointed out the fact that rent contro] still was vitally necessary in the metropolitan communities of our Nation and that the great Appropria- tions Committee should conduct hear- ings immediately upon the President’s request for a’ deficiency appropriation for the Office of the Housing Expediter. It would be an appalling catastrophe if rent control was to be killed prior to June 30, when the present act expires, because of lack of funds. The Congress has voted that rent con- trols continue until June 30, not until May 24, when the Housing Expediter’s funds run out. The Appropriations Committee cannot do less than to carry out the will of the Congress and it must consider the necessity of allocating suf- ficient money for this purpose. There seems to be a belief that need for rent control no longer exists; there- fore, why grant additional funds? That belief is not based on fact. The facts disclose that the housing market is still so tight that people in the large cities have not yet achieved a reasonable freedom of choice of a place to live. New construction has not yet broken the housing shortage. Mr. Speaker, in order to present some facts relating to important aspects of this problem, I am appending to my re- marks a recent study by Shirley Hill- mer, entitled “The Cost of Purchase Housing and a Cue for Private Enter- prise,’ which was published in the De- cember issue of the Journal of Property Management. The article follows: Tur Cost or PurcHASE HOUSING AND A CUB FOR PRIVATE ENTERPRISE (By Shirley Hillmer *) Eprror’s Notre—The views in this article are those of the author and do not necessar=- ily reflect those of the Chicago Housing Au- thority. The author is indebted to David Eddy of the Chicago regional office of the Federal Housing Administration for assist- ance in preparing data used in the article. (In terms of the present economy—level~ ing off of wages, downward employment trend, etc.—bankers and purchasing famil- ies are growing more reluctant to open their wallets, Shirley Hillmer believes. But, hold, this assumed shyness of capital is a blessing in a sense. Under our present economy the Government will have to decrease interest and amortization costs, thus opening the housing field to private enterprise in con- struction of large-scale rental projects for middle-income families.) The cost of buying a house is of interest to everyone today. In a market where there still is virtually no rental housing, the avail- ability of housing is determined by the hous- ing for sale. The factors that go into the buying of homes, such as the purchase price, the down payment, and the monthly pay-~ ments, establish the market for available housing. Such information as to this mar- ket concerns not only the man who is buying the house, but also those who build it as well as the banker who ts risking his capital. Such information is of particular interest to the managers of rental property who compete with this market. It is generally assumed that houses are selling at relatively high prices and that because of the housing shortage some peo- ple are buying at prices they cannot afford. Little documented information has been offered, however, as to the incomes of pur- chasers, the relationship of Income to pur- chase price, and the relationship of down payments and monthly payments to income. The figures presented in this paper bear upon Chicago’s housing, but it is likely that the relationships indicated here are duplicated elsewhere in the country. SEVERAL FINANCING STUDIES The facts presented are based chiefly upon @ survey of 80 percent of all single-family +Miss Hillmer is associated with the re- search section, development department, of the Chicago Housing Authority. APPENDIX TO THE CONGRESSIONAL RECORD houses purchased in 1948 with mortgages insured by the Federal Housing Administra- tion. While these homes may not be com- pletely representative of all houses bought in Chicago, they are a good sample of the lower and medium priced homes meeting minimum requirements. Two other studies supplemented the FHA survey. The first relates to all single-family houses on which title insurance was pur- chased from the Chicago Title & Trust Co. in March 1949. A study of the Chicago Title & Trust Co. files represents an excellent sam- ple, since this company provides title insur- ance for virtually all home properties purchased. The second study, made by the Real Estate Research Corp. at the request of the Chicago Housing Authority, is of typical houses built from April 1948 to April 1949. “De luxe cus- tom-built types and shoddy fringe-type” housing are not included. This Research Corp. estimated costs of various typical houses. A SUMMARY OF THE FACTS The lowest-income families purchasing housing earned $3,000 per year. Fifty-five percent of home buyers earned between $3,000 and $5,000 per year. The median purchase price of all new homes ranged from $12,400 to $12,800, and of existing houses from $11,000 to $11,800. Nine percent of all families paid three and one-half or more times their annual income for the purchase of a house. Another 19 percent paid between three and three and one-half times their annual income. The median down payment for the least expensive home, costing $8,000 to 810,000, was $1,920. For all homes the median down payment was $3,665. The median monthly payment on debt service, Insurance, and taxes for all families was $87. This excludes all maintenance and upkeep costs on the house and any pay- ments on Veterans’ Administration loans. The median monthly payment of families with incomes from $4,000 to $5,000 is 865 and for families with incomes of $5,000 to $6,000, $70. . PURCHASE PRICE OF HOUSING IN CEIICAGO The bulk of new housing, as shown in table I, sold between $10,000 and $14,000, with 6 to 9 percent selling for less than $10,000, The study made by the Real Estate Re- search Corp., which covered new houses built from April 1948 to April 1949, corrobo« rates these figures. The house most fre- guently constructed today, it was found, is the four-room dwelling. Typically, it is a one-story, one-family residence with 830 square feet of floor space. It is built of com- mon brick, with plastered walls and parti« tions, and has a full basement. The unit is heated by a coal-fired gravity hot-air fur- nace, with the roof area insulated. This typical one-story home sells as a “package” to the consumer, including land and puild- ing. Completely decorated and with front and rear walks, it sells at $11,850. A large number of one and one-half story and two- story homes for one family are being built also. The typical 1144 story house built dur- ing the 12-month period consistea of five rooms containing 1,220 square feet, and it sold for $13,950. The typical two-story house had 544 rooms, and was 1,244 square feet in area; it sold for $14,580. The bulk of the existing housing sold be- tween $8,000 and 614,000, with the median between $11,000 and $11,800. For existing housing, the distributions from the FHA study and study of Chicago Title & Trust Co. houses differ appreciably, since sub- standard houses are included in the title company’s figures. FHA carefully eliminates housing it considers substandard, while the title company does not look into the physical condition of the homes in which the title is insured.
APPENDIX TO THE CONGRESSIONAL RECORD Paste 1.—Purchase price of single-family homes sold in Chicago, 1948, and March 1949 {Percent distribution] Newly built Existing homes With With title title Purchase price | Loans | SY" | Loans | insur insured from [insured] pyce Y. IChicago] 2%, [Chicago Be | Tatic & | HEAD |ritte & Trust, * Trust, March March 1949 1949 Total__..-....- 100 100 1060 100 Under *3" Ls. 0 3 3 24 ieee se 6 6 22 18 re ee 39 28 29 17 dette aoe 30 33 22 18 nd Cr ‘ 12 13 i W £15 00 oma quar! 3 17 13 12 Miu pee ee penne eee , ‘> + 1$12, 400 1$11, 800 | $10,700 Source: Federal Housing Administration and Chicago Title & Trust Co. NUMBER OF ROOMS The large number of new houses selling for less than $12,000 is primarily the result of building economies at the expense of number and size of rooms. The number of rooms, which varies considerably with the . purchase price, is one criterion for judging the suitability of a living unit. A home must not only be suitable in size.and ar- . rangement at the time it is bought, but . fiexible enough to adapt to changes in fam- ily composition or unforeseen family emer- gencies. Tenant families hormally can ad- just to changes by moving, but the owner- occupant has this option only at the risk of a substantial financial loss. two-bedroom house could accommodate most three-person families, and some four-person families. Other four-person families and most flve-person families would need three bedrooms to accommodate them comforta- bly and provide flexibility for a long period. A report on the New York City Housing Au- thority’s new program made by the Ameri- can Institute of Architects states that in planning housing for a four-person family with two children of opposite sex, a three- bedroom dwelling ‘should be provided. TABLE 2.—Purchase price of new homes by number of rooms, Chicago, 1948: Porcent distribution ev ot . Or Oo Purchase price mow | |g ke f. one ut . Pp oye 581 | 100 38 35 27 t, fa ee Se ' : 3 $12,600 to $13,999. .2.. 178 100 a7 Al 32 $14,000 to $15,900, 69 100 { 46 45 $16,000 and over... 77'| 100 1 18 81 fource: Fedoral Wousing Administration. Almost two-thirds of the homes selling for less than $12,000 were four-room units, and there were no six-room units in this group. These four-room houses are a re- sult of economy rather than desirability for living. This seems indicated by the fact that 81 percent of the families who bought $16,000 homes chose six-room dwellings, and none bought four-room dwellings. FAMILY INCOME OF PURCHASER A study of family incomes of home pur- chasers in relation to purchase prices should be of great interest to property managers and real-estate brokers by indicating what middle-income families are willing to spend for housing. A four-room, . The fact that, as the table shows, practi- cally no families with incomes under $3,000 ventured to buy a home immediately de= limits the lower levels of the purchase hous- ing field. TaBLE 8.—Percent distribution of annual family income of familes buying single- family homes with FHA-insured mortgages, Chicago 1948 Percent Annual family income: of families Total__w eee 100 Under $3,000__-.----------- ee 3 $3,000 to $3,999_---2 24 $4,000 Lo $4,999. 28 $5,000 to $5,999__ 14 $6,000 to $6,999__ 14 $7,000 to $7,999__ 6 $8,000 to $8,999__ 4 $9,000 to $9,999... 3 $10,000 and over_-__-.-- 4 Source: Federal Housing Administration. Three thousand dollars a year, or $60 a week, is equal to the average weekly wage of Chicago’s manufacturing employees in 1948. This means a large proportion of families could not buy a home with the wages of the principal worker alone. One “rule of thumb method” of measur- ing ability to buy housing is the ratio of selling price to income. Frederick H. Allen, a@ private housing consultant, in his article in The American City, assumes that for a sound ivestment, purchase price should not be more than double the annual income for persons in all income groups. A two-to-one ratio is conservative, and many authorities suggest a ratio of two and one-half-to-one. In the past, the valuations of FHA-insured homes on a national average have been less than twice the purchasers’ income. In any case, such a ratio can be only a rough guide, as questions of down payment and-:mortgage terms are so important. As table 4 shows, current ratios of pur- - chase price to income are considerably higher than in the past. In a number. of cases, moreover, they are based on higher family incomes at the time of purchase than can reasonably be expected to continue over a period of years. FHA estimated, without reference to a possible depression, that 17 percent of the families would probably suf- fer decreased income in the future through loss of secondary wage earners, overtime, and other temporary sources of income. ‘An analysis of the ratio of purchase price to income shows that 89 percent of the families earning less than $4,000 annually paid two and one-half or more times their incomes for homes, while 63 percent of the families with incomes between $4,000 and $5,000 paid two and one-half or more times their income. The fact that families them- selves do not want to pay these high ratios is partially indicated by the fact that at the $5,000-and-over level 70 to 85 percent of all families paid less than two and one-half times their incomes. TapBLe 4.—Purchase price of single-family homes with FHA-insured mortgages in proportion to annual family income, Chi- cago, 1948 {Pereent, 8.5 Less Annual family * | 8.0to} 2.5 to] 2.0to income — | Total! and | "34/29 | 24 | than AT fom ioe 16 Vie rgaesé 2 25 Source: Federal Housing Administration, ®The American City, September 1948, p. 117. A3339 FINANCING OF PURCHASE HOUSING Financing terms play an increasingly im- portant part in a family’s ability to buy a house. The original down payment cannot exceed family savings, and the monthly pay- ments must fit within the monthly family budget. If these two conditions can be met satisfactorily, the total price may be of lesser importance. One of the explanations of the high pur- chase price-income ratio found in the FHA study was the sizable down payments that were made by these families. For example, a@ large proportion of families with as little as $4,000 annual income were able to raise $2,000 to $3,000 for the down payments, thus reducing the amount they would have to pay monthly, and enabling them to buy a house that under the accepted purchase price-in- come ratio would be completely beyond their Means. One of the indications of the impor- tance down payments play in home purchase is found in the current market, where in a number of cases sellers are making contracts for accepting them over a period of months. For even the least expensive new house, about $2,000 was the usual down payment, » and for the $16,000 houses around $5,000 was paid down Down payments would have been higher than those indicated in the table above had not VA loans (which were made in 30 percent.of the cases) ranging from $500 to $4,000 been obtained in addi- tion to the FHA insured mortgage. More- over, closing costs which may range up to several hundred dollars are not included in these down payment figures. -Because of the weight of the down pay-~ ments, a family’s savings determines whether the housing should be bought or rented, . To estimate possible future sales, therefore, . it.is necessary to estimate savings. A Nation- wide survey conducted early in 1948 to ascer- tain the savings of all “spending units,” showed that only 25 percent of the families . with annual incomes from $3,000 to $5,000 had total savings exceeding $2,000. These families constitute an important segment of ‘ the honie-buying market. In Chicago, where prices are higher than elsewhere in the Na-~ tion, probably a snialler percent of the spend- ing units had savings. Tasre 5.—Median down payment! of single- family FHA-insured homes by purchase price, both new-built and existing, Chi-~ eago, 1948 Median down payment |Median own pay- ment Purehase pric Rxist as a Exist- | por- Both | New ing | cent of solling price Total.......--. $3, 630 | $3,600 | $3,650 |... $8,000 te “O.0A4 1, 920 @) 2,150 20.0 $10,000 >» - 3,010 | 2,740} 3,400 27.1 $12,000 to $13,999. 4, 150 4,000 | 4,370 31.4 $14,000 to $15,990..... 6,220 | 6,830 | 6,4 35.0 1DNowr wove entrees commuted by subtracting FITA- Vver « loan from purehase price. seotecos be to compute median Source: Federal Housing Administration. TABLE 6.—Size of liquid assets by income of spending unit, United States, early 1948 {Pereent] Insured". 1+ 2 Nur! Amount of liquid assets held Spending unit $600 | $2,000/ $5,000 meome — ota) |None| Mio} to | fo | and $1,998} $4,009) ovor 100 18 9 100 6 3 100 7 4 100 18 7 100 27 34 Source: 1948 Survey of Corsumors Finances, Board of Governors of the Federal Resuve bystem,
A3340 TasLe 7.—Monthly family income by monthly mortgage payments on homes with FHA= insured mortgages, Chicago, 1948 [Percent distribution] Monthly mortgage payments 4 nee Monthly fam- »12/S8/2/8/3 | 838 ty income O0(%|%/% (4 /8.) 38 Belg i/si2)/8 |e) 38 o |8 sl2igis°| sz elip |€|/8\/S (ale [48 Total__..} 100 8} 22] 29 | 21 9} 11 |$66. 80 $250 to $332_....| 100 | 15 | 89 | 34} 9] 2{| 1) 5890 $333 to $416_....| 100 8 | 21 | 36} 29| 5] 1] 65.80 $417 to $499... 100 5 | 18 | 26 | 29 | 18 9} 70.00 $500 to $584_..} 100 6 | 14 | 27 | 23 | 16) 14} 71.30 $585 to $665..... 100 2) 8126} 27 | 20 | 27 | 78.80 $666 and over-...| 100 1 5/24/19) 16] 45 | 86.50 ee 1 Monthly mortgage payments included payment on rincipal and interest, mortgage insurance premium, Bazard insurance, taxes, and special assessment, It does not include payment on a loan insured by the Veterans’ AGministration or maintenance, repair, heating, and utilities. . 2 A spending unit consists ofall persons belonging to the same family and living in the same dwelling unit who pool their major items of income and expense. The spending unit is sometimes slightly smaller than the family. Source: Federal] Housing Administration. MONTHLY PAYMENTS The continuous obligations assumed by a home-purchasing family are the monthly payments. These payments are inflexible for a long period of a family’s existence and cannot be geared to short-run fluctuations of income, family size, or any other tempo- rary family or national emergency. These are the payments which may be considered as rental. - Seventy percent of all families paid more than $60 a month. Forty-six percent of the families earning less than $4,000 a year paid more than $60 a month. The advisability of any large number of additional families in this income bracket undertaking similar bur- dens is open to some question. First, some incomes are likely to be reduced when sec- ondary workers, overtime, and/or other temporary sources of income are eliminated. Second, the monthly mortgage payments of $60 do not include payments up to $20 a month on VA-insured loans, held by one- third of these families. Most important, the payments exclude costs of upkeep main- tenance, such as heat, utilities, and repair. Repair and maintenance are flexible costs in the sense that they can be postponed. The postponement or elimination of this type of expense, however, takes serious toll in property values and leads to the creation of new slum areas. Families with incomes of $5,000 and more per year were paying $70 to $90 in monthly payments. This is only 12 to 15 percent of their income, suggesting to those engaged in home building for either rent or purchase the limits to which these families are willing to go. CONCLUSIONS The implications of these facts for real- estate brokers, real-estate managers, and other members of the building fraternity are fairly clear. It is quite apparent that the purchase of housing under conditions sim- Nlar to those detailed here will not continue. Family incomes are not showing signs of in- creasing, and bankers are showing an ever- growing reluctance to take much additional mortgage paper under these circumstances. Hence, as long as construction costs remain up, there is a good possibility that additional rental units if economically built can lure ' many of these would-be buyers away from the purchase market. ‘ However, it should be clear to the group interested in building rental housing that even families with higher incomes can find ~ purchase housing with monthly payments of $90 a month. Therefore, although renters may be willing to pay somewhat more than this amount because of the relative freedom that renting provides as opposed to home owning, the amount of the rental can prob- ably not be far in excess of this figure. There is little question, however, that the essence of the problem both for those inter- ested in selling or in renting housing is the high construction costs. These costs can of course be lowered by a direct attack on ma- terial costs, building methods, or by intro- ducing the economies of mass production and prefabrication. In the absence of such basic readjustments, governmental help, such as subsidies in the form of longer amortization or lower interest costs may prove to be an- other answer for meeting the housing need of these middle-income families. Cee tener an nee Do We Want To Drive the Germans Back to Totalitarianism? EXTENSION OF REMARKS HON. WALTER H. JUDD OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. JUDD. Mr. Speaker, under leave to extend my remarks, I include an ar- ticle from the European supplement to Human Events, written by Marian Doen- lioff, an anti-Nazi German who realizes that no people can live forever in a vacuum, and that unless the western victors treat with ordinary decency, justice, and encouragement, those who were anti-Nazi and humane, then we need not be surprised to find more and more Germans turning in desperation to their eastern victors. The treatment of General von Falken- hausen is a blot upon the record of the western powers. Our own Government ought to take the lead in correcting the situation. VoN FALKENHAUSEN Recently I met a young man with whom I often had very lively discussions during the war. He was, then, aide-de-camp to a rather objectionable Nazi general whom, partly be- cause of stupidity, partly because of loyalty, he used to defend whenever I attacked the attitude of his chief and of the German mili- tary leadership asa whole. I remember quite well that during our last discussion, in the autumn of 1943, he indignantly exclaimed: “I do not know what you mean; is there then no general whose attitude meets with your approval?” ‘Yes,’ I replied, “there is one who should be an example to all German officers: General Von Falkenhausen.” Obviously he, too, remembered that talk because his first question the other day was: “What has happened to your Falkenhausen?” Rather shamefacedly I had to tell him that Falkenhausen during the last few years has been in no fewer than 51 camps and prisons in 6 countries, and that for the last 2 years | he has been imprisoned at Liége in Belgium— without any trial, even without any indict. ~ ment. Whereupon my young friend replied, with a show of satisfaction: “My general, on the other hand, is doing extremely well.” Due to his relatively good upbringing he did not go on to say: “Now you see what your obsolete ideals are worth.” Because it is typical that many Nazi officers . are free, and because it is equally significant APPENDIX TO THE CONGRESSIONAL RECORD that many of the best and most decent Ger- mans, who for years fought against the Nazis—such as, for instance, Weizsacker—are in prison, I want to sketch the story of Von Falkenhausen, whose case has come dra-~ matically into the limelight during the last few weeks. During the German occupation of Belgium, Falkenhausen was military governor and as a result of his high office was taken into cus- tody in 1945 as a potential war criminal. The 5 years which have elapsed since the end of the war have obviously becn insufficient to find out whether he will be tried individ- ually as a war criminal. Many Belgians have unsuccessfully pleaded for Falkenhausen. They have stressed again and again that it was primarily due to him that Belgium came out of the war relatively unscathed and was the first European country to stage a spec- tacular recovery. A highly placed Belgian last week refused to accept a decoration, giv- ing as his reason that he could not accept this honor so long as Falkenhausen, who had done very much more for Belgium than he himself, was in prison. As early as 1930, when many Germans who later joined the resistance movement, and many foreign politicians also, had no clue to what the Nazis really wanted, Falken- hausen in public speeches warned against the new movement. In 1932 he endeavored to get Chancellor von Schleicher to ban the SA. In 1934, shortly before the 30th of June, when his brother was murdered by the Nazis, Falkenhausen went to China as private mili- tary adviser to Chiang Kai-shek, secking a refuge there. After the conclusion of the German-Japanese treaty Ribbentrop forced him to return to Germany by threatening to take revenge on his family. Immediately after his return, in 1938, Falkenhausen joined the German resistance movement around General Beck and Burgomaster Goerdeler. I remember quite well that at the time, and also at the beginning of the war, & strong group pleaded for the appoint- ment of Falkenhausen and not General Beck as head of the resistance movement. In 1940 responsible persons took steps to get him appointed to the post of Military Governor of Belgium in order to counteract the influence of the Nazi Party in that oc- cupied country. This task he fulfilled splen- didly in constant struggles with the Gestapo, police, and Flihrer's orders, as far as it was at all possible. Twice he tendered his resig- ation but it was twice brusquely refused. When, finally, in 10944, he refused to con- seript Belgian youths of 19 for work in Ger- many, he was dismissed by Hitler and sent to a concentration camp “for constantly fa- voring the enemy.” He was liberated by the Americans only to be incarcerated by them later as a potential war criminal. His suc- cessor in Brussels, the Nazi Gauleiter Grohé, was freed by the Belgians a long time ago. Since 1944 Falkenhausen has been dragged from one European concentration camp or prison to another. Now he has reached the age of 71, yet is still the prototype of the knight without fear or reproach. But he has become a lone old man still more lonely since his wife died on March 4 of this year. She lay dying of cancer in a hospital in Hesse, and because he had not seen her for 10 years, people after a great struggle succeeded in getting him so-called leave of absence. A certificate of the German doctor, an application by his counsel, and the rec- ommendation of the Bonn government were not enough to obtain the leave. Only after two doctors came from Belgium to X-ray the very weak, old lady, who fainted re- peatedly during the procedure, was leave finally granted. Escorted by two Belgians he was allowed to visit the hospital which for his reception had been specially occupied by 25 American military police, and he could
APPENDIX TO THE CONGRESSIONAL RECORD only see his wife in the presence of another military policeman. Shortly before the vital operation he had to return to Belgium, and when his wife soon afterward died he was transported back again to Germany by the same procedure. On special orders from Brussels he was not allowed to attend the burial, but had to stay in the hospital under a strong guard. He was forced to spend the night with three rowdy GI’s in a barracks room, because al- legedly there was no privacy available. General von Falkenhausen is nearing the end of his life. All these afflictions can no longer injure him. He is beyond resentment and complaint, and looks into a better world. But we who want to rebuild this world are questioning whether this can be done unless justice and kindness find some place in the foundations. Threat From Within EXTENSION OF REMARKS HON. T. MILLET HAND OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. HAND. Mr. Speaker, perhaps the chief threat to our American democracy is the failure of many millions of Ameri- cans to take a strong interest in our Gov- ernment. The Atlantic City Tribune on April 18, 1950, published an editorial en- titled “A Threat From Within,” which is worthy of the attention of all of us. The editorial follows: Tue THREAT From WITHIN As is usually the case, voters in the primary election today probably will be conspicuous by their absence. It is a strange trait of Americana, more evident on primary election day, that the or- dinary voter doesn’t “bother to take the time,” especially since there is little in the way of interesting political contests on the primary ballot. This trait, which has become more pro- nounced with the passing years and which hit a new low in the last Presidential elec- tion when barely more than half the coun- try’s registered voters trooped to the polls, is feared by many Officials as a weakness which could lead eventually to disintegration of the democratic system of government simply through lack of popular interest. “How much more difference can my vote make?” has been a familiar refrain by many voters, a refrain which is dangerous. “Besides,” some voters say, “I don't have any say in picking the candidates, so why should I bother with a primary?” That is true to a great extent, but it 1s also true that the system itself can be kept in line only through popular evidence of voting strength. The laggards in the registration books can be spotlighted only through a gen- eral resurgence of faith in the voting sys- tem, a resurgence that can be brought about only by a willingness to “take the trouble to vote.” There have been many moves in the past to introduce legislation which would make it mandatory for every registered voter to exercise his franchise, but they were de- feated chiefly because many politicians are aware their success lies in a limited vote. This threat from within our borders is Just as dangerous to our security as any from without. Let’s tackle this apathy today as a starcver. XCVI—App.——211 -which. was @ year ago. The Veterans’ Preference Act Goes Too Far in Discrimination in Certain Circum- stances Against Nonveteran Employees With Long and Efficient Service EXTENSION OF REMARKS HON. WALTER H. JUDD OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. JUDD. Mr. Speaker, under leave to extend my remarks in the Rrecorp, I include the following letter recently re- ceived from a constituent. It portrays vividly, but without venom, the inequi- ties and injustices created by certain provisions of the Veterans’ Preference Act, which should be modified to correct them: MINNEAPOLIS, MINN., March 21, 1950. Hon. Watrer H. Jupp, House of Representatives, Washington, D. C. Dear MR. Jupp: I am @ nonveteran Govern-~ ment employee writing in the hope that you will listen to the inequities and inequali- ties of the Veterans’ Preference Act and pray that you will take the necessary action to repeal it, At the present time I am employed at the Veterans’ Administration Center, St. Paul 11, Minn., and have in my possession a letter from that center possibly terminat- ing my services in 1950, due to personnel ceilings’and reduction in force. I have worked for the Federal Govern- ment going on 10 years and also have an excellent efficiency rating, but even with this service and efficiency rating I am either to be demoted or will be out of a job. It is all so unfair, for as I look about me and see the various persons who have much less qualifications and service than I, who are permitted to stay, merely because they are veterans. Some have only a few months of military service behind them and only a couple or 8 years of Federal Government service. All of the nonveteran employees that have served the Veterans’ Administration since its origin have received these letters of re- duction In force. Many of them came di- rectly from high school and colleges into the Federal service to the Veterans’ Admin- istration expecting to find security and adr vancement. After serving as many as 30 years and even more in some cases, they now face disillusionment and despair for the very Government that they have given the best years of their lives to, is now telling them to move on. Who wants them now? ‘They are in their late forties and early fifties, which jis an age too early for retirement, and yet no one will want to take them on. Where will they go? What will they do? These nonveteran employees have knowl- edge and years of experience that is val- uable to the United States Government, and they are to be replaced by new em- ployees that will have to be trained, tak- ing unnecessary time and money, at a time when economy is being stressed. I know this for a fact, for we are still training those employees that were put in our particular division from the last reduction in force They still cannot handle the job, thus with still more new employees in these jobs, the efficiency of the Veterans’ Administration will really suffer. A3341 Give preference to the truly disabled vet- eran who cannot go out into private in- dustry and make a living. By all means, give him preference and all the way, but for the good of the Government and actually for the good of the veteran himself, help to eliminate this out-and-out preference, for today and tomorrow the Government is losing some of its best people. Very truly yours. ANSWER TO THE LETTER ON VETERANS’ PREFERENCE ACT Thank you for your thoughtful and de- tailed letter regarding the inequities and in- equalities of the Veterans’ Preference Act with respect to Government employees who have long and efficient service and are dis- placed when a reduction in force goes into effect. You may be sure I agree with the views you have expressed and believe there will have to he some changes in the act. There are bills now before Congress to amend the Veterans’ Preference Act of 1944 and to pre- serve the equities of permanent classified civil-service employees. The House Post Office and Civil Service Committee expects to consider this matter soon and I shall press for some early action which will help in cases such as yours. With besl wishes. Very sincerely yours, WALTER H. Jupp. Twelve O’Clock Noon EXTENSION OF REMARKS OF HON. ROY 0. WOODRUFF OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Saturday, May 6, 1950 Mr. WOODRUFF. Mr. Speaker, un- der leave to extend my remarks in the ReEcorp, I include the following address by Leland I. Doan, president of the Dow Chemical Co., at the annual meeting of the Midland Chamber of Commerce, Midland, Mich., January 18, 1950: TWELVE O’CLockK Noon Nineteen fifty is a year to reckon with. Gentlemen, I pray we will reckon well. A few days ago some of you people came down to see us about a sort of midcentury celebration for Midland and Midland County. It’s probably a good idea. Anyway it set me thinking that there is—or at least can be—vastly more importance to such celebra- tions than we may reatize. All over the country communities and organizations of one sort or another are, or will be, planning some special observance of 1950. The number itself is psychological. It is a nice round number. It is the 12 o’clock noon of the twentieth century. So all these communities and organiza- tions are just naturally going to take time out to review the past. They’re going to celebrate. They’re going to pat each other on the back. And they’re going to brag a bit. Well, that’s all well and good. The back- patting, the bragging, the celebrating are certainly well deserved. Even though we were to borrow all the adjectives in Holly- wood, we would be at a loss to aptly de- scribe the past 50 years. Never in history has there been a like period when the lives of sO many people have been affected so often and so much by so many things. And we here in America have had ringside seats.
A3342 We have fought and won two wars, of course, although as yet we have failed to win the peace from either. We have seen the maps of the world redrawn, and we have seen them shrink to postage-stamp size be- cause in these 50 years we have, among other things, conquered time and space. In 1900 you would not have expected to go from here to Mount Pleasant and return the same day. People commonly were born, grew up, raised families, and died without ever hav- ing traveled that far from their birthplace. Today any one of you can step outside your house and into a device you call an automobile. In 15 minutes you can be at Tricity Airport, 10 miles away. And you can have dinner beside the Pacific Ocean or in Mexico City. The point, of course, is that not only are such things possible, they have become almost commonplace, It has become commonplace also to trans- act business in Chicago or St. Louis in a few moments through an instrument on the corner of our desk, to hear music or a ball game being played in New York or Cali- fornia. If we want light, we flip a little lever on the wall, and if we want it warmer, we adjust another. Still another gives us instant heat to cook our dinner. If you really want to know what has hap- pened in the last 50 years, start in tomor- row morning when you get out of bed and analyze every move you make until you go to bed again. And with each move ask your- self, “How would I have done this 50 years ago? Or would this even have been pos- sible?” We walk the same, we talk the same, we see, hear, smell, taste, and feel. We know love and hate, joy and sorrow. But’ those bodily actions, senses, and emotions are about the only things in our lives that are like they were in 1900. And even those have all felt the influence of the things that have happened since that time. Yes, countiess intimate, physical things surrounding our lives have been created and improved, But there have been less obvious things, 100. Fifty years ago Midland was a little town of dirt streets, wooden sidewalks, a scatter- ing of business places and some 2,000 souls. The boom of the lumbering days had passed. There was agriculture, but of limited area and extent. Salt, manufactured locally, had become a glut on the market. The old bromine industry had gone out with the salt. And down at the end of Main Street was an upstart chemical company that seemed to be gaining ground but could certainly not be reckoned to replace King Lumber. Education, typical of the times, was ele- mentary. Medical care was limited to what could be accomplished ir: the home or office of the local physician. Men who had jobs— and boys too—toiled 10, or more likely 12, hours a day to earn three squares, clothing, and shelter. And often they were paid, not in money, but in scrip. I don’t have to tell you men about Midland today. You are Midland. This organiza- tion represents a guiding force. It can steer Midland to the right or to the left, for- ward of backward. Today our educational facilities are among the best in the country. And we are even now building to make them better and larger. We have a modern, well- equipped hospital. Our men work 8—not 10 or 12—hours a day. And while we think prices are high, the money they earn in 8 hours buys more goods than ever before in history. Our homes stir admiration in the visitor, and as a friend of mine put it recently, we are so everlastingly widening, paving, sewer digging, and building that you never know what street to take to get through to where you want to go. Yes, if ever people had cause for celebra- tion, we have it—for our accomplishments as a nation of people, for our accomplish- ments as a community, But for all this my mind keeps turning in another direction. In this noontime of the century we are still only half through the day, and there is always tomorrow. At lunch we are prone to remark to our compnaniors, “This morning I wound up sucli-aic-sucit a deal.” And later we will probably say, “This afternoon I must look into this,” or “Right after lunch I must take care of that.” There are some things we had better take care of, and right after lunch may hardly be soon enough. I wonder how the future historian will sum up the first half of our century. I wonder what he will say of 1950, I wonder, for example, if our grandchil- dren, taking a federally prescribed course of education, will one day read in their history books something lke this: “The year 1950, to all intents and purposes, saw the end of free capitalism in the United States. While another 10 years was consumed in bringing about complete national control of all business, the victory of the welfare state was essentially fact by the middle of the century. Clinging to their sentimental notions of private ownership and freedom of endeavor, the owners and managers of busi- ness and industry nonetheless failed to con- vince the people of the merit of what they called free enterprise and the elections of 1952 left no doubt that the American people favored the security of state planning and paternalism. “The victory of the welfare state did not, of course, come about overnight. It was won by successive stages over several decades. The great depression of the thirties and the great war of the forties which followed has- tened it by disturbing the normal operation of the old system. This gave early progres- sive planners an opportunity to educate the populace to accept controls over prices, wages, and the purchase of certain commodities, as well as intermittent direct control over cer- tain industries. And with the high wages prevailing in the forties the people appeared quite willing to turn over much larger por- tions of their income to the Government to be used *» “row cir~ welfare services, in stim- ulating ‘ .:‘l yp -s through farm subsidies ” Does such a prospect scare you? Or do you think it can’t happen here? I can remember when Hitler was a comic little man with a trick mustache. I can remember when we joked about Russia’s ‘‘5- year plan.” We didn’t think it would last 5 years. Only a few years ago Britain was the very symbol of stalwart stability among nations. The world virtually revolved on the pound sterling. Could it possibly be significant that the recent devaluation of the pound caused little more than a momentary flutier of speculation and anxiety on this side of the Atlantic? Today she is clinging by her fingernails from the top window ledge of her tower of socialism. And we here in America are helping her Socialist leaders in their frantic efforts to keep the tower itself from falling apart. Well, these things scare me. I don’t like to say “scare,” but I’m afraid “disturb” woulda be quite an understatement. In any event, I’m not alone in my thinking. There’s a recurrent question afloat these days. It’s been the subject of some public debate, and a number of public speeches. It goes like this: “Are we slipping (or sneaking) into socialism?” Some of our country’s leaders have laughed at this question. But not the way you may think. They have said: “No, we aren’t slipping into socialism. We are dashing headlong into it.” A few weeks ago Father Edward A. Kellar, director of the bureau of economic research of Notre Dame University, mentioned this in addressing a group of public relations people—-people who in one way or another do much of the talking for American industry. APPENDIX TO THE CONGRESSIONAL RECORD And he made what is to me a horrifying statement. He said: “I am not going to tell you, ‘It is later than you think.’ Iam telling you, you have 2 years at the most.” Unfortunately, there is evidence to support Father Kellar’s statement. Consider just two current movements—the agitation for socialized medicine and the outbreak of antitrust actions which appear definitely to pe aimed more at bigness in private business than at the conduct of the business. These, certainly, are straws in the wind. But I wonder if they aren’t much more than that. The first, it appears to me, is the most obviously socialistic scheme that has ever been openly proposed on a national scale. If the American people buy that scheme they will buy others. The second, while perhaps not ostensibly socialistic, appears to me as an unprecedented effort to exert peacetime governmental control over industry beyond the intent of our existing laws. Our problem is not one of dealing with the admitted Communists and the admitted Socialists, but—far more difficult—of stem- ming the socialistic trends and ideas which have been infiltrating our traditional and presumably respectable institutions * * * our old line political parties, our educational institutions; yes, even some of our churches. Of course, they do not carry the labels of socialism, but rather travel under such ap- pealing names of medical insurance, welfare economy, planned economy, and so on. We are not up against visible antagonists, but insidious ideas attractively packaged. Nor are we up against some set “day of confiscation” of all private business, but against the gradual encroachment of Gov. ernment control which will perhaps ulti- mately leave today’s businessman with all his present responsibilities but without his present remunerations, incentives, and op- portunities. Britain’s Socialist Government has by no means taken over all business—just credit, communications, civil aviation, transport, coal mines, electricity, gas, medical service. That’s all. With those, of course, she can control any business * ™ * to any degree she sees fit. And her remaining private in- dustry now has the responsib.l.uy ot tying to make enough money to cover the operating losses sustained on those she has taken over. Regrettably, her failures and dilemmas do not seem to be cooling even slightly the ardor of the planners who are working toward the same sort of system here. We are today in this country going through much the same sort of social and economic reforms Britain went through before her government became openly Socialist. If you want to see the parallel between Britain and the United States you might read John T. Plynn’s The Road Ahead. It is not conducive to pleasant dreams, how- ever. You know, sometimes I get the uncom- fortable feeling that we have crealed so many toys for curoelves in the last 60 years that they're taking our attention away from the fundamentals of our existence. I'll wager a lot of people spend more time trylug to figure out the week's mystery tune than they do the qualifications of the man who gets their vote for Congress. Well, I wonder. Are we right, or are the planners right? Is this systcim of ours any good? This system that says a man may work according to his own choosing; that says @ man is entitled to the rewards of his own. toil; that says his savings are also en- titled to profit if he wishes to risk them in the creation of new productive power; that says his opportunities for self-betterment are limited only by his own willingness and ability to serve others with his hands or his brains; that says that so long as mon com- pete honestly and openly the public inter- est will be served, and the dishonest will, in the long run, engineer their own downfall?
APPENDIX TO THE CONGRESSIONAL RECORD It 1s not, never has been, perfect. Nor, for that matter, has anything which man has ever created been perfect. But I know one thing. The things we have accomplished in this country since 1900 have not resulted from any master plan set up in that or any other year. Nor have they resulted from any paternalistic promise of security. No; they have resulted rather from men working to make their own security; from men, in competition with each other, trying to do a better job, to invent a better mouse- trap, to open a new frontier in the knowl- edge that America rewards achievement— not subservience. As a people we are, I think, generous, hu- mane, and thoughtful of our fellow man. And we find joy in accomplishment for its own sake. But no one would claim that our successes have resulted entirely, or even largely, from altruistic motives. They have come from our individual attempts at self- betterment—which is just a part of the natural law of self-preservation. The trouble, perhaps, is that because our motivating forces have been inherently sel- fish these motives are now being questioned without regard to the human benefits that spring from them. Our measuring stick is the dollar, rather than the product or the service. Well, this year we are going to be looking at some of those human benefits. We are going to be comparing 1950 with 1900. And perhaps we will be saying, “Just look at all the wonderful things that have happened in 50 years.” But that isn’t quite true, because they didn’t just happen. They were created—by American hands and American brains—be- cause our American system gave those hands and those brains the incentive to create. I wonder if as we celebrate our achievements ‘we can somehow adequately tell the tremen- dous story that lies behind them, You can. see this story:in hundreds of com- munities throughout the country. But you meed not even travel outside of Midland. Herbert Dow, a young lad of 25, came here with an idea. Why? He wanted to make some money— a perfectly simple human desire that’s just as prevalent today as it was in 1890. But he needed money to even get started, and he didn’t have any. So he used some~ one else’s. How could he do that? Why, because those people wanted to make some money too; and they thought maybe they could do it with his idea. Those men were capitalists. Well, they did make some. And a lot of others have since. And today more than 19,000 capitalists are hoping, and are mak- ing some money by letting the company that Herbert Dow started use their savings. Now you could complete the story, per- haps, by saying that today that company has an annual income of more than $200,000,000. And that it returns to these capitalists eight or ten million dollars a year in dividends. But I wonder if that is the story? Is it of any possible human significance that 15,000 men and women today earn decent, respectable livings from jobs that are in existence because some “capitalists” wanted to make some money with their savings and lived under an economic system that per- mitted them to do so? Is it of any possible human significance that in your daily lives you can scarcely touch a thing that has not been made pos- sible or made better because of one or more of the six-hundred-odd products that have come from the business Herbert Dow and those capitalists started? Is it of any significance to the people of Midland that the city they live in has, di- rectly and indirectly, shared in the rewards that have come to that company because its goods and services have found favor in competition with those of other companies? We have, in this economic system of ours, the best product the world has ever known. We're supposed to be the best salesmen in the world. We have the most intelligent all- around group of customers, and they’ve had a@ long and on the whole very satisfactory demonstration. It is possible that we can’t keep that product sold to those people, that we're going to lose out to a piece of merchan~ dise that has never offered anything but promises—and as yet has not made good on them in the countries that have bought it? I don’t think so. But it’s going to take some selling—in every way we know how, in every place we can tell the story, in our schools, our clubs, our social gatherings; yes, right down to the level of street-corner conversation. For it is at that level that mouch of the antiprofit, anticapital, anti-big- business talk circulates. Yes; it’s going to take some selling—some telling. And you can talk on a national scale if you want. But you can find it all right here. You can take your customer around Midland and show him our homes, our good streets, our fine schools, our recre- ational facilities. You can take him up Main Street and around Ashman Circle, and show him our busy shops and stores. You can bring him down to the plant and tell him the story, the one we, ourselves, too often forget. And then, late in the afternoon, you can take him up by the courthouse and let him look back down Main Street, through the stores, the traffic, the silver boulevard lights and the green elms. And way in the back- ground the sun should be lighting up a river bank studded with red bricks, and green and red and yellow tanks and pipes. And you can say to him in all sincerity: “That, Mister, is Main Street, U. 8. A.” A Real Danger EXTENSION OF REMARKS ° HON. CLARE E. HOFFMAN OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Friday, May 5, 1950 Mr. HOFFMAN of Michigan. Mr. Speaker, let us hope that President Tru- man, when he stated recently that there were no Communists on the Federal pay- roll, knew what he was talking about. If there are none there now, that is a most encouraging circumstance, for recent convictions of Communists who were on the Federal payroll, admissions by former Communists, proved beyond argument that communism is a real threat to our national security. Unless there is imminent danger of a war with Russia, there is no excuse for the appropriation of the billions of dol- lars of the taxpayers’ money for which Mr. Truman and the heads of his de- partments, especially the armed services, are asking. In the May 1 issue of the Allegan Ga- zette, published in my home town of Alle- gan, Mich., there is a very brief editorial by Leo W. Hoffman, which points to Mr. Truman’s error and which reads as fol- lows: TRoMaAN REVEALS WEAKNESS OF His POSITION on CoMMUNISM In a speech before the Federal Bar Asso- ciation, at Washington, Tuesday evening, President Truman. stated there were no Com- A3343 munists on the United States payroll, and attempted to take the credit for the convic- tions of Communists that have been se- cured up to date. He ignored the Alger Hiss case, his at- tempt to quash that investigation and the effect that Hiss may have had on United States security. : He ignored the Amerasia case and the fact that over 500 State documents had been stolen with no solution by the Justice De- partment. He stated that there was no danger from communism, within this country but the danger lay in Russia and communism taking over free countries abroad and thus increas- ing the threat to this country. This last statement reveals the weakness of his position. We agree with him that the real danger lies in permitting Russia to expand but we add that there is a very grave danger within this country when our State Department not only does nothing to halt Russian expansion but aids and en- courages the spread of communism in some parts of the world. It is no secret that a certain group in the State Department was responsible for propaganda encouraging Chinese Commu- nists and for preventing this country from giving aid to Nationalist China in its fight against the Communists. And just as Tru- man said, whenever and wherever commu- nism takes over another country, that con- stitutes an additional menace to the se- curity of the United States. It is this group in the State Department that McCarruy has attacked and the people are entitled to know just what happened. So far neither Truman, Acheson, Mrs, Roose- velt, or any other New Dealer has given the public any account of our failure in China. By their silence on this subject they lend support to McCarTHyY’s charges. : President Truman assumes that only he and his Justice Department have any right to investigate anyone. From the beginning he has used the office of Attorney General, not to impartially try known criminals but as a weapon against political enemies. For instance, within this last month for- mer Congressman Slaughter from Missouri, the man Truman purged (an investigation into that ended when certain ballot boxes were stolen) was tried before a Federal court on a charge of illegal lobbying. It didn’t take a Federal court on a charge of illegal lobbying. It didn’t take a Federal judge 5 minutes after the Government’s case was in to dismiss the charge on grounds that Gov- ernment had failed to make out a prima facie case. Why was this man, Truman’s enemy, prosecuted in the first place? Then too, why for so many years did Tru- man attempt to quash the investigations of the Un-American Committee? Why did he halt a full and complete dis- closure of the Amerasia case? Why did he for so many years prevent @ somplete investigation of Alger Hiss? Why did he ignore Patrick Hurley’s accu- sations against certain men in our State De- partment, when Hurley resigned as special envoy to the Nationalist Government in China? And why doesn’t Mr. Truman answer these questions when he attempts to defend his ac- tions and the policy of his State Department? Our conclusion is that he hasn’t any an- swer. He knows he is on the wrong side of the fence and he doesn’t see any way out except to ignore any explanation and hope he can be reelected with the ald of his cor- rupt big city machines and by promising some of the people who are inclined toward socialism, more unearned benefits. L. W. H. Mr. Speaker, in the same issue of the same paper is another editorial entitled
A3344 “The Value of the McCarthy Probe.” That editorial is as follows: Tu VALUE OF THE McCartHy Prope We listened to a short broadcast by Dr. Dunbar several nights ago and it was our im- pression that he was in favor of dropping the McCarthy investigation, which he assumes is only serving political purposes. We believe that the American people will never be satisfied until there has been a com- plete and full investigation of Senator Mc- CartHy’s charges. The people of this country now realize that our State Department failed in China. They realize that Communist success in China constitutes a potential danger to the security of this country. Senator McCarrHy and ther responsible persons, including Patrick Hurley, claim the reason for Communists taking over China is because the personnel of our State Department, to say the least, fa- yored the Communists in China over the Nationalists. If our failure in China was due to in- fluence exerted in and on our State Depart- ment we are entitled to know it. Truman has claimed the credit for what he calls our postwar prosperity; let him ex- plain and take the responsibility of our postwar failure in China. Dr. Dunbar cannot excuse this failure by saying that during the war Stalin was our friend and Russia our ally. Surely he is not so naive as to believe that even during the war responsible people in Government did not realize the threat of communism and the danger of becoming engaged in a war with Russia. No, we can’t find it reasonable to say that our Government should be ex- cused for its failure simply because during the last war we all were boosting for Russia to give Germany a licking. Our State Department was supposed to cope with the postwar conditions in China. In order to prevent a third world war it was the policy of this country to check the spread of communism. Our Government failed miserably in China and now we want to know whether it was because of Red in- fluence in high places or just plain dumb- ness. ‘It is true that Owen Lattimore was not an employee of our State Department. It is not true that our State Department did not fol- low Lattimore’s advice in all particulars. At least our State Department favored the China Communists over the China National- ists and now we want to know why. Was it because of Lattimore and others like him? Did our State Department permit Commu- hists and Communist sympathizers to in- fluence it? That is what we want to know. Mr. Speaker, these two editorials show something of the thinking of the people of the smaller communities throughout the Midwest, for they are typical of the thought expressed in many letters which come to me from that area. . Whether there are at the moment Communists in the State Department and whether Senator McCartHy has been reckless in his charges; whether the truth will ever be known, one thing is crystal clear, and that is this: Regard- less of the intentions or of the loyalty of those who have been in charge of our postwar foreign policy, they have failed to prevent the spread of communism. In spite of the expenditure of billions of dollars to aid other nations, it is ex- tremely doubtful that, if war with Rus- sia comes, any nation in the world will be able and willing to render us worth- while help in that war. Having made a mess:of our foreign policy, created a situation where we are threatened with a third world war—and every student of history knows that suf- fering and disease follow in the wake of war—those responsible for that failure should not be permitted to either repre- sent us abroad or direct our activities if war comes. Men who have failed so miserably, no matter what their qualifications, should not have under their charge or direction the lives and destinies of the millions of young Americans who will be called to fight in any war which may come to us because of a lack of ability and foresight on the part of those who have been di- recting our foreign policy. Reclamation in the Arid and Semiarid West EXTENSION OF REMARKS oF HON. HUGH BUTLER OF NEBRASKA IN THE SENATE OF THE UNITED STATES Monday, May 8 (legislative day of Wednesday, March 29), 1950 Mr. BUTLER. Mr. President, I ask unanimous consent to have printed in the Appendix of the REcorp a splendid address entitled “Reclamation in the Arid and Semiarid West,” delivered by William E. Welsh, secretary-manager of the National Reclamation Association, before the recent convention of the Na- tional Rivers and Harbors Congress. There being no objection, the address was ordered to be printed in the Rrecorp, as follows: RECLAMATION IN THE ARID AND SEMIARID WEST It is a pleasure to appear before this or- ganization, an organization national in scope and now in its fortieth year, an organization that has had a great and beneficial influence upon the policies of this Nation with respect to the development of its water resources. It is likewise a pleasure to appear on behalf of an association such as our National Recla- mation Association, an association in its eight .enth year and representing the western half of the United States. Both organizations are interested primarily in fostering and promoting a sound and orderly program of water-resource develop- ment. Water is a basic resource. Its use affects the economy, happiness, and pros- perity and the future welfare and security of all the people. We have long recognized the importance of water to the western half of the United States. More recenily such great cities as New York City, as well as other areas in the East have been brought face to face with the fact that they cannot continue to grow and expand, in fact they cannot survive without water. Our National Reclamation Association, representing the arid and semiarid West, was organized primarily for the purpose of foster- ing and promoting reclamation development in that area. You who are here because of your interest in water realize, I am sure, that out in that desert country man cannot sur- vive upon the use of water as it is delivered by nature—from melting snows and the winter precipitation. Water must be stored in reservoirs and held over for the dry sum~- mer season, TOTAL IRRIGATED AREA The total irrigated area of the entire West today amounts to 21,000,000 acres. Only APPENDIX TO THE CONGRESSIONAL RECORD 17,000,000 acres remain to be trrigated. To put it in a different way—all of the land remaining to be irrigated in the West and susceptible to irrigation amounts to only one-third of 1 percent of the total land un- der cultivation in the United States. Furthermore, with respect io agricultural surplus the Senate Committee on Interior and Insular Affairs on March 20—last Mon- day—in report No. 1351, pertaining to the Columbia Basin, said: “The committee examined the effect, if any, of the agricultural production from all reclamation projects collectively upon so- called food surpluses and determined that with regard to items which are said to be in surplus supply, the effect is relatively insignificant.” RECLAMATION REQUIRES TIME Reclamation, as you well realize, is a slow process. The problem of reclaiming the desert lands of the West and bringing them under irrigation is entirely different today than it was 50 or 75 years ago. The irrigation. in the West was on a very small scale. The early day western pioneer who scttled in the valleys and by the side of a stream, con- structed his own irrigation canal and diversion works. Today the situation is entirely different. Land to be irrigated and brought under cul- tivation is often many miles away from the point of diversion from the stream. Huge dams and reservoirs are required to catch the flash spring run-off and hold the water for use when needed later. Today reclamation is a multi-purpose, basin-wide undertaking. It requires a long period of time to make all necessary surveys and investigations and it requires even more time to complete the plans and make the final determination as to how and where the waters of a river basin can best be utilized within that basin. It requires years to build these great multi-purpose projects. Thus to complete the reclamation of the remaining 17,000,000 acres yet undeveloped and susceptible to irrigation will require many years—perhaps half a century, perhaps longer. In the meantime, through erosion and soll depletion, we are losing approximately 500,- 000 acres of agricultural lands every year, while our population is increasing at the astounding rate of considerably more than 1,000,000 per year. LONG-RANGE PROGRAM The need for future reclamation develop- ment should not be determined upon the exigencies of today alone, but rather upon the ultimate, long-range requirements of our rapidly growing population and the ne~- cessity of maintaining our high standard of living, which is the envy of the entire world. It would be folly to plan our reclamation program on a stop-and-go basis, deter- mined by changing conditions from year to year. The program must be determined on the basis of the long-time needs and require- ments of the country. A reclamation project, once it is con- structed, is wealth producing for generations to come. Reclamation, in addition to re- payments by the water users and repayment through power revenues, also pays the Fed- eral Government and the Nation in many ways. Farmers on reclamation projects and citizens and industries of the communities which are sustained by those projects pay in Federal income taxes in a few short years more than the cost of the entire project. Reclamation conserves the natural re- sources of the West. It creates self-sustain- ing communities. It provides stabilized agriculture. It is a field in which private capital cannot, and will not, invest. The reclamation projects of the West pro- vide a ready market for the manufactured products of the East. The Senate Interior and Insular Affairs Committee in the report of March 20, Just referred to, stated that the