A612 Johnson, As I understand them they are: (1) A belief that the moral law of God gov- erns business as well as everything else in life, and that good morals are necessarily good business; (2) a belief in the dignity of every human being; (3) a belief in the “Golden Rule” as the guiding principle of industrial relations. Admittedly this is an idealistic approach to business, but the disconcerting thing about General Johnson—to some of his as- sociates of lesser faith as well as to out- siders—is that to him this idealism is hard- headed realism. And the doubly disconcert- ing thing is that the record of Johnson & Johnson bears the man out. Few American corporations are more efficiently managed than this one, and few have been more con- sistently profitable. One of the first things a prospective em- ploye of Johnson & Johnson sees on enter- ing the main plant in New Brunswick is a framed copy of General Johnson’s indus- trial credo. It is worth printing here: . We believe that our first responsibility is to our customers. Our products must always be good, and we must strive to make them better at lower costs. Our orders must be promptly and accu- rately filled. Our dealers must make a fair profit. Our second responsibility is to those who work with us—the men and women in our factories and offices. They must have a sense of security in their jobs. ; Wages must be fair and adequate, manage- ment just, hours short, and working condi- tions clean and orderly. Workers should have an organized system for suggestions and complaints. Foremen and department heads must be qualified and fair-minded. There must be opportunity for advance- ment—for those qualified—and each person must be considered an individual standing on his own dignity and merit. Our third responsibility is to our manage- ment. Our executives must be persons of talent, education, experience, and ability. They must be persons of common sense and full understanding. Our fourth and last responsibility is to our owners and stockholders. Business must make a sound profit. Reserves must be created. Research must be carried on, adventurous programs developed, and mistakes made and paid for. Bad times must be provided for, high taxes paid, new machines purchased, new factories built, new products launched, and new sales plans developed. We must experiment with new ideas. When these things have been done, the owners and the stockholders should receive 8 fair profit. We are determined, with the help of God's grace, to fulfill these obligations to the best of our ability. To those who know the set-up at Johnson & Johnson, that credo explains why the cor- poration has matched its technological achievements with something approaching a triumph of human engineering. No one at Johnson & Johnson, from the chairman of the board down, is satished with the prog- ress that has been made. Far from being complacent, they are looking everywhere for new answers to old questions, carrying on ex- periments every day. But in emphasizing the human and normal side of industrial re- lations, they feel they are on the right track. “A business is made up of persons, not build- ings, machines, and money in the bank,” says General Johnson. “These are only the tools.” . Perhaps the trouble in a lot of companies is that the persons are only tools, too, Universal Military Training EXTENSION OF REMARKS HON. HENRY CABOT LODGE, JR. OF MASSACHUSETTS IN THE SENATE OF THE UNITED STATES Wednesday, February 19, 1947 Mr. LODGE. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an editorial entitled “Pertinent Questions,” published in the Boston Herald of February 18, 1947. The editorial deals with the sub- ject of universal military training. There being no objection, the editorial was ordered to be printed in the REcorpD, as follows: PERTINENT QUESTIONS Senator Lopcr has put some questions be- fore the President's Advisory Commission on Universal Training which might also be pon- dered by the new congressional budget- makers before they finally slaughter our na- tional defense. Dr. Karl T. Compton, chair- man of the committee, responded enthusi- astically to the Senator’s suggestion that the committee include them in the scope of its inquiry. “You have raised s0 many interesting points that I am bringing your letter up for special consideration by our Commission as it lays plans for future hearings and study,” Dr. Compton replied. What the American people want to know, said Senator Lopoz, is “whether compulsory military training is necessary at all.” To answer this basic question, the Senator said it would be necessary first to answer a num- ber of others, including the following: “Is the Government of the United States, acting through its legislative and executive branches, organizing the total human and material resources of the Nation to provide national security against total war? “Does the Government of the United States possess conclusions which are at one and the same time authoritative, impartial, comprehensive, and up to date regarding the effect of modern science on national se- curity in the light of the facts of the world situation and of the capacity of our economy? “Are these conclusions sufficiently firm to enable the American people to tell what are the just demands to be made on their money and their manpower? “What is the present ability of the United States— “(a) To hold strategic air, ground, and sea bases? “(b) To provide immediate defense against air and surface attacks? “(c) To undertake counteroffensive action of all types? “(d) To discharge our immediate responsi- bilities, viz, the occupation of Germany and Japan, the provision of military forces for the United Nations, the support of American foreign policy in North China and Trieste, and the maintenance of communication to overseas bases? “(e) To mobilize rapidly? “(f) To eliminate efficiently the deadwood in the personnel of the regular air, ground, and sea services? “(g) To get quick decisions on matters af- fecting the air, ground, and sea services? “What is the present degree of American supremacy in scientific research and develop- ment?” These are pertinent questions. Until they are answered it will be impossible either to know whether we require universal training or to what extent we can afford to pare down the budget for national defense. APPENDIX TO THE CONGRESSIONAL RECORD Is America Headed for Illiteracy? EXTENSION OF REMARKS HON. GORDON L. McDONOUGH OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. McDONOUGH. Mr. Speaker, America is facing a new crisis so serious, so far-reaching in its effects upon the future of this Nation, that the Congress of the United States can no longer ignore it as a problem belonging entirely to the States alone. We have in America today a shortage of teachers that is growing daily at an alarming rate. Low salaries and the ris- ing cost of living have driven competent men and women in the teaching profes- sion to seek other jobs where the re- muneration is greater. Low salaries have discouraged young people from choosing teaching as a career. Since 1939 more than 350,000 men and women have quit the teaching profession, ap- proximately one-third of all the teachers in America, At the same time our schools and uni- versities are taxed beyond their capacity to educate the youth of the Nation and the returning veterans. The results of thjs crisis in our educa- tional system will be evident when these young men and women assume the re- sponsibility of the Government unless we study the problem now and find a solution to the difficulties within our ed- ucational system. We do not want an illiterate nation. In a scientific age, our future, in fact our survival as a nation, may well depend upon adequate education for our youth. Graham Patterson has written an ar- ticle on this subject which appeared in the Pathfinder on February 12, 1947. I recommend it to the attention of every Member of the House at this time. Mr. Patterson’s article is as follows: 18 AMERICA HEADED FOR ILLITERACY? America’s public-school system is today facing a serious situation. The teachers, to whom we look for the proper education of our children, are disap- pearing from the classrooms. More than 350,000 have quit the profession since 1939. That is approximately one-third of all the teachers in America. Emergency measures to meet the situation have compelled many States to issue emergency certificates to young men and women lacking the usual qualifications, including even some who have not been to high school. Even with these radical measures, however, there were 60,000 teachers’ jobs unfilled last year. To make the situation worse, fewer per- sons are entering teachers’ schools. In 1920, one-fourth of the college students enrolled at teachers’ colleges; by 1930 only 1 out of 6 embraced a teaching career; last year, the number of students planning to be teach- ers was only 1 out of 14. A dire outlook, in- deed, for our children and grandchildren. In many cities throughout the country teachers are going on strike. In St. Paul, Minn., e teachers’ strike lasting 85 days in- volved 1,160 teachers and 30,000 pupils. Similar teachers’ strikes have occurred in Norwalk, Conn., Wilkes-Barre, Pa., Ports- mouth, Ohio, Paterson, N. J., and others are threatened in many other cities,
APPENDIX TO THE CONGRESSIONAL RECORD That teachers have a just grievance, any fair-minded person will concede when he weighs the investment in time, study, and effort required of teachers to qualify them for their profession against the inadequate compensation they receive for their services. They are caught between the jaws of a fixed and already low income and steadily rising living costs. In 1041 the national average teacher's salary was only $1,470 a year. That is the national average; there are 11 States in which salaries run as low as $500 a year. In Mississippi, 60 percent of the teachers earn less than $900 a year; in Arkansas, more than half are paid less than 61,000; the largest proportion of teachers in Missouri, New Hampshire, Kentucky, Iowa, North Caro- lina, South Carolina, Tennessee, Georgia, Alabama, Nebraska, South Dakota, and Vir- ginia are paid less than $1,500 annually. To make ends meet, many teachers are utilizing their spare time to e.rn money in factories, even night clubs, as salesmen, truck drivers, carpenters, and in one case a8 a bartender. A man entrusted with the molding of young minds tending bar. The New Jersey Educational Review reports that teachers’ outside jobs range from hotel chambermaids to tool-and-die work. In a recent issue of the Saturday Evening Post, one of the 350,000 teachers who have quit explained why: “Because today teach- ing is the most underpaid and unappre- Ciated of the learned professions.” In many cities a man can earn as much and even more at tending bar or driving a truck as he can by utilizing his knowledge, training, and abilities to educate the young. In most cities a woman teacher can start as a tele- phone operator at as much as she can earn in a classroom. And the telephone operator can look forward to increased pay with expe- rience; the school teacher's salary is usually frozen by law. Last month, the National Education As- sociation, with a membership of nearly 775,000 teachers, outlined a program calling for “higher minimum salaries, with regular increases leading to a professional salary level for experienced teachers ranging from $4,000 to $6,000." Efforts are being made to establish minimum-pay laws; in one State the goal is $2,200; in nine others, $2,400. We are now spending six times as much on our peacetime Army and Navy as we are for our education bill; we allot to the education of our children only half as much as is spent each year for liquor. Isn’t it high time we recognized our responsibilities to our chil- dren, and in turn to the teachers to whom we look to help make them good Citizens, and literate citizens? Missouri River Development EXTENSION OF REMARKS oF HON. CHARLES R. ROBERTSON OF NORTH DAKOTA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. ROBERTSON. Mr. Speaker, the Congress of the United States is com- mitted to a program of the development of the Missouri River and its tributaries. The work on this large project has al- ready begun. It is the duty of this Con- gress to carry through until it reaches its final completion. The area of continental America drained by the Missouri River and its tributaries is possessed of some of the most productive of all the lands in the Nation. There are many areas, however, in this region that are subject to recur- ring droughts. The development of this river as proposed under laws enacted by this Congress means that the peoples in these areas will be self-supporting be- cause the plans provide for the use of the waters of these streams. This Congress has, on occasions in the past, been called upon to make enormous appropriations to the drought-ridden areas of this continent. Those days will occur again. As we stop today to ponder on the question of reducing budgets and curbing of spending, let us not forget that as a Nation we will be confronted again with the need of appropriations for areas that suffer from the tragedy of drought. This can be corrected by the use of the waters of the Missouri River and its tributaries by fortifying the people in these areas with irrigation tracts by which they can produce forage crops to carry the herds of cattle over these dry periods. Under leave to extend my remarks, I include herewith the following House Concurrent Resolution P unanimously passed by the North Dakota Legislative Assembly at a very recent date: House Concurrent Resolution P Concurrent resolution expressing the sup- port of the people of North Dakota for the development of the Missouri River and its tributaries and petitioning Congress to continue its support Whereas the several departments of the United States Government have prepared and adopted a unified plan for the develop- ment of the physical resources of the Mis- souri River Basin; and Whereas that plan was approved and au- thorized for construction by the Congress of the United States in the Flood Control Act of 1944; and Whereas appropriations for such develop- ment have already been made by the Con- gress of the United States and such works are now under way; and Whereas successful completion of said unified plan will bring untold benefits to the people of the Missouri Basin and to the People of the United States as a whole by increasing industrial, agricultural, and eco- nomic opportunity and by stabilizing the business, industry, and agriculture now ex- istent in the Missouri Basin: Now, there- fore, be it Resolved by the House of Representatives of the State of North Dakota (the senate concurring), That we hereby express the support of the people of North Dakota for this development of the Missouri River and its tributaries and that we respectfully peti- tion the Congress of the United States to continue its support of this development and to make the necessary appropriation to carry on this work without delay, and that the secretary of state be authorized and directed to transmit a certified copy of this resolu- tion to Senators Youna and LANGER and to Congressmen RosrrTson and LEMKE at Washington, D.C. The Wagner Act in an Industrial Democracy EXTENSION OF REMARKS or HON. LISTER HILL OF ALABAMA IN THE SENATE OF THE UNITED STATES Wednesday, February 19, 1947 Mr. HILL. Mr. President, I ask unanimous consent to have printed in A613 the Appendix of the Recorp an address on the subject The Wagner Act in an Industrial Democracy, delivered by James J. Reynolds, Jr., member of the National Labor Relations Board, before the Atlanta Junior Chamber of Com- merce, at the Henry Grady Hotel, At- lanta, Ga., January 23, 1947. There being no objection, the address was ordered to be printed in the Recorp, as follows: I trust you will be indulgent if the first very brief portion of my remarks appears to be concerned with a recitation of rather per- sonal history. Not many years ago I came to your neighboring State of Alabama and took employment as an iron-foundry laborer in the city of Bessemer, which, as you know, is to the south of the richly endowed indus- trial area of Birmingham. I came not only from the North, I came from the pseudo- sophisticated atmosphere of New York’s fi- Nancial district, which represents the antith- esis of everything into which I was making my way. And I must confess that I brought with me certain preconceived ideas as to the character of the people among whom I was to live and of the community which was for a time to be my home. Whatever concern I had as to the treatment to be accorded a “damned Yankee” moving into a close-knit Southern industrial community was soon dissipated. Where I might very well have met resentment at the intrusion of a stran- ger, I met only kindness and welcome; where I had expected prejudice, I found only un- derstanding and tolerance; where I expected indifference, there was a helping hand and thoughtfulness on every side. I have not forgotten those days, nor will I ever. I think I came to know something of your splendid southern workingman during the years which followed. Not only did I share his toil and his problems as a fellow worker, but as time went by and I passed over that mysterious dividing line which separates the ranks of worker from those of management, I came to appreciate to an even greater ex- tent what a really decent and loyal employee he is. For the most part, a first-generation industrial worker, still close enough to the earth and the plow to be possessed of very fundamental concepts as to the eternal truth and goodness of the Golden Rule, he is to me & grand American—there is none better. He is the sort of man you like to have around when there is a job to be done, a fight to be fought, or a laugh to be had. And now once again I return to the South- land, for which I shall always have a pro- found and abiding affection, and this time I do not come to toil in a foundry, nor do I come to share the responsibilities of man- agement; I come as a Government official entrusted with the task of sharing with my two colleagues the responsibilities of admin- istering the most controversial piece of legis- lation since the eighteenth amendment. I used to think that getting up each morning at 6:15 and walking through the empty pre- dawn dark to work a long day in the heat and nolee and grime of a foundry was tough: I often felt discouraged and frustrated when I wrestled with the problems of industrial management; but, gentlemen, those days were sheer heaven compared with this. And yet, to be quite honest about it all, I must admit that no one forced me into this job; it was my privilege to decline when the President did me the honor of asking me to become a member of the National Labor Re- lations Board. The simple truth of the mat- ter is that (1) I firmly believe thut all men to whom the opportunity of public service is presented should gladly serve for a reasonable period of their useful lives, and (2) my expe- rience as a worker and a member of the managerial family have given me the firm conviction that, despite all criticism, despite all abuses and excesses of those whose con- duct should be its greatest affirmation, and
A614 despite the human failings of its adminis- tration of which I must share the blame when blame is due, the National Labor Rela- tions Act stands as one of the greatest pieces of liberal legislation ever enacted in this or any other country. I believe that a free and self-disciplined labor movement is essential to the preserva- tion of our free-enterprise system. The Na- tional Labor Relations Act, when thoroughly understood, is clearly consistent with this purpose and tradition. It must be kept in mind that the act neither presumes to fix wages nor determine prices. It has a very simple and fundamental purpose, and that is the establishment of a basic industrial liberty—namely, the right of workers to or- ganize and to bargain collectively through representatives of their own choosing. All of its details are devoted to the purpose of either defining those practices which inter- fere with this fundamental right or are con- cerned with establishing procedures for pre- venting any interference with that right. There can be no doubt that whether we approve or disapprove of the purposes of the act, it has had a tremendous impact upon American industry. Largely due to the pro- vision which enables the Board to obtain judicial enforcement of its orders, one anti- union stronghold after another has been forced to yield to its provisions. Since its passage some 11 years ago, trade-union mem- bership has increased from 8,000,000 to over 14,000,000. It is now an accepted fact that wages and other working conditions in the great mining, manufacturing, and transpor- tation industries are largely determined by collective agreement. Whatever its faults may be, there can be no doubt that the civil rights and the economic status of the aver- age worker have been greatly strengthened through its administration. If the industrial democracy which has been created under the benevolent protection of the act is to endure, those labor organiza- tions which are chosen to represent Ameri- can labor must themselyes be democratically minded, If power is to continue to flow from those represented up to the representa- tives, then responsibility must flow from the leadership down to the rank and file. Un- fortunately, as we who live in this democracy know all too well, the right to choose repre- sentatives is also the right to make mistakes. All that the act can do is to create those conditions favorable to democratic function- ing; it cannot step into the election proc- esses and guarantee certain results; that is up to the electorate. However, there can be no doubt that the character of representation chosen by labor and the type of conduct in which unions in- dulge is in a very real sense a matter over which an intelligent employer can exercise considerable influence. Making due allow- ance for the obvious gradations of human nature, whether in the ranks of capital or labor, I believe that the employer who adopts @ friendly attitude toward unions will, in the long run, be rewarded by the experience of dealing with the more enlightened type of labor leader. In this connection I urge upon you not to permit the distressing news stories of recent months which reflect the intemperate conduct of a few men in posi- tions of power within the union movement make you unmindful of the fact that within the labor movement of this country there are some of the soundest and most respon- sible individuals of our day. As contrasted with an enlightened employer fully conscious and respectful of the rights of his employees, the hard-shelled antiunion employer will in- evitably be faced with a hard-bitten union man as negotiator for his employees. How could it be otherwise? Let’s suppose that you and I and all our fellow workers in a particular plant decide that we can best pro- tect our economic interests by organizing. Suppose that immediately upon engaging in lawful activity in the pursuance of this de- sire, we are rebuffed by an employer who eases our leaders out of their jobs in the plant and refuses to sit down with us to discuss problems of mutual concern, I think it is reasonable to expect that our reaction would be to choose as our leader that indl- vidual who can best beat the employer at his own game, and who will be continually alert to discover ways of injuring him s0 that he may ultimately, through force, bring him to the goal of reason. The employer who starts his relations with organized labor on the basis of reason and fair play is far less likely to see them end in a resort to force. When the employer is reasonable and understanding, there is no incentive for the union to send around a top sergeant to bring him to terms. Like begets like in the factory as in every department of human life. The employer who seeks by espionage, illegal discharge of workers, and the imposition of company unions to break down budding self- organization among his employees is inviting e reaction. This reaction, due to set in sooner or later, will lose nothing of its final devasting quality when measured in terms of economic strife or bad morale in the plant. The relentless progress of the union move- ment under the protection of the National Labor Relations Act has reached into practi- cally every phase of our industrial life. Its new frontier is reflected in the resurgence of organizing efforts here in the southern sec- tion of the country. Into this great area of superb manpower and great natural resources has come a force which can leave its mark in a constructive way upon southern indus- try for years to come, or it can mean discord and industrial strife such as marked the campaigns to organize some of the major industries in the great industrial centers of the North. It seems to me that the intelli- gent, far-sighted approach for management to take would be that which gives full recog- nition to the law of the land under which employee rights are protected and which di- rects its efforts to make of the new force in the industrial community a power for good and stability. For it is a fact that a byproduct of this great union movement is the impetus which it gives to the interest of our people in demo- cratic institutions. Through union meet- ings and ample education programs set up by unions, countless Americans are receiv- Ing an education and experience in the prin- ciples and practices of self-government which seems to me to be more valuable to the coun- try than any other type of adult education, There they discuss their problems, commend or criticize their leaders, give expression to their aspirations, and learn that in manage- ment-labor relations compromise is often & more commendable trait than belligerency. Their education in self-government is car- ried on under the most realistic conditions since they are participating in the solution of their own most vital problems, Many thousands of new labor agreements have been arrived at by collective bargain- ing between employers and labor organiza- tions. Each of these agreements represents peace, stability, and mutual respect, and most of them represent economic progress. I won't burden you with statistics and anal- ysis of the collective-bargaining agree- ments that are in existence today. We need not resort to statistics to be sure of this minimum: through many applications of the Wagner Act collective bargaining has re- sulted. Collective bargaining has led to stabilizing agreements—in some industries where the employer heretofore was the all- powerful and unquestioned economic sov- ereign. These agreements have reduced the individual worker's economic helplessness APPENDIX TO THE CONGRESSIONAL RECORD and feeling of insecurity. Beyond this his chosen representative has contributed to the determination of wages, seniority practices, and grievance procedures. In short, the col- lective-bargaining agreement has introduced & measure of self-determination, a measure of democratic give-and-take in place of indus- trial absolutism. These collective-bargaining agreements mean more than stability and economic bet- terment. In essence they embody real rep- resentative government in industry. This participation of the worker in the indus- trial government has meant that freedom of Speech, press, and assembly are enjoyed in greater degree and in more communities in America than ever before. It has also meant that workers have more understanding of their Government and its several branches than they have ever had before. And, if we should, in any way whatsoever, stifle or retard this development, it is likely that the masses of the people will be denied that training in self-determination, that feeling of stature, and that sense of security which are necessary for the development of stable and efficient government. In short, if we affirmatively support the operation of the Labor Relations Act and its underlying prin- ciples, in my opinion, we are reinforcing the bulwarks of our American society. These gains which I recite seem to me to be substantial and important in themselves, both spiritually and materially. But their chief importance, I am convinced, lies in this particular lesson: in the many tests which we will face—and I mean both labor and management—we must, under no con- ditions, give in to any alluring short-cuts which will hamper the fostering and mainte- nance of free collective bargaining. My own belief is that employers will most satisfactorily further their relations with trade-unions if they cease to think in terms of legal restraints which they may exercise against them, Successful dealing with trade- unions depends on the growth of mutual cone fidence between the employer and his work- ers’ representatives. Such confidence is never assisted by the fact that one party to negotiations sits with a lawyer at his elbow and his inward glance firmly directed at statutes and courts, seeking not for points of accommodation but for some means by which he can embarrass and frustrate the party of the second part. Trade-unions for their own selfish interests must be responsible under contracts, They have shown themselves to be eminently so in those industries in which collective bar- gaining has gone on over any considerable period of time. The contract is the most precious possession of the trade-union and its members. Every force of constructive leadership within the union demands that the contract be carefully observed. The growth of such constructive leadership is the surest guaranty of protection for the employer in his relations with the union. It is far surer than the legal supports which he attempts to erect. The latter may seriously damage the natural evolution of a course of Gealing which automatically creates obliga- tions and responsibilities by both sides, based on the lessons of experience. When all is said and done, laws are not panaceas for troubled labor relations. They are made, of course, to define fairly rights and duties. But the greatest need is for an earnest desire for fair play and justice, When all the facts are made available, an enlightened self-interest should guarantee a proper give and take. After all, in the field of industrial relations, as in the realm of responsible government, peace rests upon freedom, not restraint; upon equality, not subservience; upon cooperation, not domination,
APPENDIX TO THE CONGRESSIONAL RECORD Having been shown the responsibility and sphere for self-government, it is now up to both management and labor to measure up to their duties and responsibilities. Both parties should be careful lest—either through ignorance, anxiety to do away with strikes, or to put one over on the other team—they surrender irreplaceable and basic liberties. Editorial Comment on Lincoln Day Ad- dress by Hon. Henry Cabot Lodge, Jr., of Massachusetts, at Louisville, Ky. EXTENSION OF REMARKS HON. JOHN SHERMAN COOPER OF KENTUCKY IN THE SENATE OF THE UNITED STATES Wednesday, February 19, 1947 Mr. COOPER. Mr. President, last Wednesday evening the junior Senator from Massachusetts [Mr. Lopce] deliv- ered an address before 1,200 members of the Lincoln Club of the city of Louisville, Ky. His address was received with great enthusiasm by that club and by the members. I ask unanimous consent to have printed in the Appendix of the Record an editorial entitled “New Thought, New Action Proposed to Re- publicans,” published in the Louisville Courier-Journal of February 14, 1947, dealing with the address. There being no objection, the editorial was ordered to be printed in the Recorp, as follows: NEW THOUGHT, NEW ACTION PROPOSED TO REPUBLICANS Lincoln Day oratory and the Fourth of July brand usually have much incommon, When the bombast is stripped off, the thought con- tent commonly is revealed as weary, stale, flat, and unprofitable. There was a welcome freshness, however, about much that was said by Senator Henry Cazsor Lopes, Jr., be- fore the Lincoln Club of Louisville. His speech contained two elements rarely displayed on these occasions: humility and responsibility. There was a minimum of tub-thumping about Republican prospects for 1948, and in its place a healthy admission that the Republican Party is on probation. There was a sound analysis of motives in last November's elections (many people did not vote for us so much as they voted against the things they did not like), and a state- ment that the people’s mandate was for ac- tion, not reaction. Senator Lopcs acknowledged with the best of grace his party’s responsibility for con- tinuing a foreign policy that knows no par- tisanship. That line was explored still fur- ther by Harold E, Stassen, also a Lincoln Day orator in New York. The Minnesota aspirant to the Presidency selected the hardest aspect of a bipartisan foreign policy, the issue of low tariffs and reciprocal-trade agreements. His speech was a strong plea for reversal of @ moss-bound tradition of Republicanism, and he drove home his reasons with powerful logic. This 1s wonderfully clear speaking for a candidate. He draws a parable that anybody” can understand: “If we had insisted that each of the States of the Union should raise its own wheat, mill its own flour, make its own shoes, build its own automobiles, tailor its own clothing, the result would bo that the people in none of the States would be enjoying the standard of living they enjoy today. We have now reached the point where the counterpoint of this basic fact is upon us on a world level.” A third orator, Senator Tarr, spoke more in the tones of the Republican past than the others. He was less specific on fiscal policy than Senator Lopag, who asserted point blank that a balanced budget should come first, reduced taxes afterward. Even the gentleman from Ohio, however, came out in opposition to a return to congressional tar- iff-making with its inevitable log rolling. There are historic shibboleths that block fresh thinking in both parties, and the Re- publicans in the main have been tenacious clingers to tradition. There is hope for the country, however, in evidences of a fresh ap- proach by leaders of the dominant party in Congress. It would be cause tor rejoicing if the party would take to heart Senator Lopar’s happily chosen slogan from Abraham Lincoln: “Think anew and act anew.” Controlling the Harvests EXTENSION OF REMARKS OF HON. JOHN J. WILLIAMS OF DELAWARE IN THE SENATE OF THE UNITED STATES Wednesday, February 19, 1947 Mr. WILLIAMS. Mr. President, my attention has been called to a thought- provoking editorial which appeared in the Wall Street Journal under date of February 17, 1947, entitled “Controlling the Harvests.” It deals with the experi- ence of the Federal Government during the past decade in its tinkering with the law of supply and demand, with particu- lar reference to the support pricing pol- icy on farm products, pointing out how the present policy has failed to induce farmers to make shifts in production. I ask unanimous consent that the edi- torial be printed in the Recorp. There being no objection, the editorial was ordered to be printed in the Recorp, as follows: CONTROLLING THE HARVESTS For 20 years our people have allowed their Government to indulge its pretty whimsy that one or several of its bureaus can do a better job of setting prices on farm products than the commercial markets do. When markets are free they are places where all producers and all consumers of a given thing, through their agents, meet to trade. The prices they ask or bid and the quantities they offer or call for express their varying experiences and opinions as to production costs, consumer needs, available supplies, and fair or obtainable profits. For 20 years this method of determining prices has been more or less suspended—sometimes less but usually more—in favor of the principle that any gov- ernment worth its salt can make everything lovely for everybody. Now comes the National Planning Associa- tion to say that this situation must be changed because it isn't working well for any- body. The association proposes to change it by making it more the same thing than it ever was. An NPA pamphlet, according to press reports, says that present and past Gov- ernment farm programs have failed and still fail to induce farmers to make the shifts in production necessary to meet changing de- mand-supply conditions, A615 So the association proposes a commodity- pricing board, which would determine the right price well ahead of planting time. That price would become the Government's sup- port price for the coming marketing year. The board would set forward prices for the various crops and animal products which would insure production of just enough of each to meet the season's demand, which, of course, the board would already have ascer- tained, also a year in advance. The association does not say how many Members should sit on the pricing board. We are inclined to think one would be suffi- cient, provided he were such a crystal gazer as never lived on land or sea. It might be even better to have just a board without any- body sitting on it. Address By Governor Dewey Before Canadian Society of New York EXTENSION OF REMARKS HON. ALBERT W. HAWKES OF NEW JERSEY IN THE SENATE OF THE UNITED STATES Wednesday, February 19, 1947 Mr. HAWKES. Mr. President, I ask unanimous consent to have printed in the Appendix of the CoNGRESSIONAL REcoRD an address delivered by the distinguished Governor of New York, Thomas E. Dewey, on February 9, 1947, at the fiftieth anni- versary dinner of the Canadian Society of New York at the Hotel Biltmore. Mr. Dewey said some very important things. I call attention particularly to his statement as to the esteem in which, for many reasons, we hold the Canadian people and their Government, and the emphasis which he laid on the service they rendered to the world and the ex- ample of courage they set by exposing the subterranean methods adopted by certain people in their effort to under- mine the cause of free men. There being no objection, the address was ordered to be printed in the REcorp, as follows: I am happy to take part in welcoming on this distinguished occasion the illustrious soldier whom His Majesty King George VI has chosen for his personal representative in the great Dominion of Canada. It is indeed a pleasure to congratulate our close friends and neighbors to the north upon having for their Governor General a man whose name has already achieved heroic stature. It is @ name which belongs in that grand roster which includes Wolfe, Wellington, Wolscley, Kitchener, and Roberts. To us in the United States his name has a particular significance since so many of our own sons and brothers fought under his command. Few commanding generals have had 80 much to overcome and few have had so many difficult tasks thrust upon them. In the terrible war just concluded, whenever there was an operation that seemed hopeless he was selected to command it. After the light- ning thrust of the Nagis to the English Chan- nel, after they had swept triumphantly across France and the Low Countries, the brave British Expeditionary Force was doomed. At least the whole world thought it was doomed. But as always, through the centuries, Britain had up her sleeve not an ace buta man. The commander in chief of that expeditionary
A616 force had been recalled to England. It was left to the indomitable general whom we are honoring tonight to do the best he could. In an operation which thrilled the whole world he saved more than 330,000 British, French, and Belgian soldiers from apparently inevitable disaster. Those 330,000 lived to fight again to final victory. And their com- manding general was the last man out of Dunkirk. Early in 1942 another crisis threatened the cause of freedom. The Japanese had poured into Burma with a speed almost equal to that of the Nazis in Europe. That operation ac- tually threatened the safety of India. The first battle of Burma was already lost and another British force seemed doomed to be sacrificed. Another hopeless job was there, so they picked the man who had done the impossible and saved those 330,000 at Dun- kirk. He did not arrive ir 2angoon until the enemy's victory was already assured. So he inherited the most heartbreaking command in warfare, a rearguard action through jun- gles and over mountains, against vastly su- perior forces. Once again he saved his men, brought 80 percent of his troops through alive and safe after a delaying action and retreat which was the admiration even of the enemy. He not only saved his men, he pre- served India as a base for Allied counter- offensive. Only a few months later they found him another desperate problem. North of the Mediterranean the Germans and Italians were streaming through the Balkans with al- most nothing to stop them. In Africa Rom- mel was pushing closer and closer to the life line of the British Empire which now had become the life line of the Allied defense. Rommel had to be stopped at all Costs. Again a man was needed to do the impos- sible, to reorganize the British forces and save the Middle East. Again they called upon the man who had saved the day at Dunkirk and who had saved India. And it was he who organized the counteroffensive in northern Africa successfully executed by Montgomery of El Alamein. Today we know that this was the turning point of the war. It was the beginning of final victory in Europe. Under the man who had brought it about, Americans and British fought side by side, clearing all North Africa of Germans. After all this, one might have thought that this man who had pulled so many vic- tims out of so many fires was entitled to an easy job for a change. So what did they do for him? They gave him command of the Allied forces in Italy, one of the most difficult operations ever planned. Maybe he prefers that kind of a command. We do know that in the teeth of almost insuperable obstacles, against the cream of the German Army, in the face of the most elaborately planned defenses considerably helped by nature and geography, he advanced up the peninsula, captured Rome, and finally accepted the un- conditional surrender of all the German forces south of the Alps. We think pretty highly of our own gen- erals. They and the men who fought under them have a claim upon our gratitude and affection we shall never forget. We are proud of them, but we are also proud that many of our men fought under the command of the splendid British soldier who time and again wrought the impossible, the man whom tonight we are deeply happy to greet as His Excellency the Governor General of Can- ada, Field Marshal the Viscount Alexander of Tunis and Errigal. We are happy to greet him as a great soldier whose achievements were not only military, but were high in the realm of statesmanship ir the critical period tn which the liberties and the very lives of all of us were hanging in the balance. We are happy to greet him 8 o~e who deserves the respect and gratitude not only of the world but of history. We are most happy to greet him as one who com- manded our sons and our brothers in a dread- ful conflict which welded us all closer to- gether. We are proud to welcome him as a new resident of the North American Con- tinent in which are still burning fiercely the fires of human liberty to which he con- tributed so richly of his courage and his genius. It is rare in world history that the Gov- ernor General of a great nation should be welcomed by the people of another great na- tion with such a sense of affection and frater- nity and such a sense of unity and of part- nership. Our respect and regard for the people of Canada have, if possible, been increased dur- ing recent years by the gallant part which the Canadian people have played in the mainte- nance of a free world. Without hesitation, Canada threw in its lot with Britain when the cause of freedom was menaced in Europe by the Nazi totalitarian terror. When Japan attacked the United States at Pearl Harbor, Canada did not hesitate to declare war on Japan forthwith, and side by side at all risks and at all costs we marched together on the battlefields of the world until the last of our enemies had surrendered and the cause of freedom had triumphed once again. And at least to our friends to the north some of the lessons of history have not al- ways been immediately forgotten. The Canadiar people and their government know that the struggle for freedom is a struggle which never ends. They know that it is not permanently won by military victories alone. The price of freedom today, as always, is eternal vigilance. The Canadian Government has exercised that vigilance in a manner which provides an example which might well be followed by other free nations. I am referring now to the Report of the Royal Commission of February 5, 1946, made to the Committee of the Privy Council in which it is said: “that it has been ascer- tained that secret and confidential informa- tion has been communicated directly or in- directly by public officials and other persons in positions of trust to the agents of a Foreign Power to the prejudice of the safety and in- terests of Canada.” That report is a most shocking document, It demonstrated step by step and act by act the most skillfully organized espionage sys- tem ever exposed in our time. It demon- strated specific acts within our country and indicated beyond question the most wide- spread similar activities both here and in other nations. It reported upon an organ- ized set-up on behalf of a foreign govern- ment which was, and I quote the report: “The result of a long preparation by trained and experienced men, who have come here for the express purpose of carrying on spying activities, and who have employed all the re- sources at their disposal with or without cor- Tuption, to fulfill the tasks assigned to them.” The act of the Canadian Government in publishing to the world last year (June 27, 1946) the full facts developed by its inquiry, was a wise act. Also, it was a brave act, for Canada was left to act alone. I am sure we all share an admiration and respect for the courage, the diligence, and the intelligence of our friends to the north who unhesitatingly exposed and took action upon this matter of mutual importance though they have a total population smaller than that of the State of New York. It will take equal courage and honesty, and I may say equal bluntness of speech and — action, if we are to preserve our freedom and build for a peaceful world. We North Americans have a tradition of action and of frankness. It has paid the richest of dividends in peace and prosperity and sets a pattern which might well be of greater application elsewhere in the world. Here on this continent we have demonstrated that peoples of differing national loyalties can nonetheless live in peace and mutual respect and warm regard. APPENDIX TO THE CONGRESSIONAL RECORD Between Canada and the United States there exists a bond which is unique in the annals of history. Our nations have lived at peace side by side with 8,000 miles of unde- fended border for nearly a century and a half. ‘We have had peace for so long that on both sides of the border it is taken for ganted. It is taken for granted as much as peace is assumed between the State of New York and the State of Pennsylvania. The significant thing of this bond of peace lies in the lesson it teaches as an outstand- ing demonstration of the solid ind reliable way of achieving a durable peace. It must be clear to all by now that peace is not obtained by proclaiming it in words or in treaties. The nations of the world renounced war as an instrument of national policy in the Kel- logg-Briand Pact. But within a few short years that renunciation was followed by the greatest and most destructive war of all time. True peace is a state of mind, of under- standing, and of active human relationship. The true path toward achieving peace is the development of human relations of such a kind that war is psychologically unthinkable. The tie that binds nations is one of mutual understanding, of respect, and tolerance of differences. Peace is a web of cultural and economic relations, each strand of which is fragile, but when added together they make @ bond so strong that no one could tear it and a bond so precious that no one wants to tear it by the brutal act of war. Those who today are seeking a formula for peace, can do well to study the formula of peace which has developed between our two great nations. Then they will pay less attention to the words which they write in treaties and more attention to the develop- ment of natural forces which tie men to- gether with bonds of fraternity, common in- terest, and respect. We have achieved this solid bond of peace because there have been no secrets between us, no haggling, no struggle for power. There has been no effort by either to aggrandize itself territorially or economically at the ex- pense of the other. We carry on joint ventures together such as the International Joint Commission and we freely navigate the great St. Lawrence River under joint control. We share peaceably the use of our great joint water-power resources and I hope we shall enjoy the use of still more of them in the years to come. Most important of all, our people move freely across that great border. They do busi- ness together every day. They visit each other for a holiday, for a week end, or even for a steak dinner, a card game, or a movie. We know each other—so we like and trust each other. Equally important is the fact that infor- Matic. flows freely across one border and the free press serving both our countries keeps our people fully informed so they have the kind of faith and respect for each other which has created the greatest association of two free nations in history. May it long continue in the interest of the people of both countries and as a daily object lesson to all the world in the building of a lasting peace. Address of Hon. Thomas J. Lane, of Mas- sachusetts, Before Lithuanian Group, Lawrence, Mass. EXTENSION OF REMARKS HON. THOMAS J. LANE OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. LANE. Mr. Speaker, under leave to extend my remarks in the Recorp, I
APPENDIX TO THE CONGRESSIONAL RECORD wish to include therein my remarks be- fore a Lithuanian group in Lyra Hall, Lawrence, Mass., on Sunday, February This day—February 16—is dear to the hearta of all Lithuanians. Twenty-nine years ago was the day when Lithuanian independence was proclaimed. One hundred and fifty years of suffering un- der a hostile, foreign rule were over, Lith- uania stood forth as an independent and democratic republic. We Americans rejoiced on that day. We looked forward confidently to her future. We knew that with this incentive, her an- cient culture would flower again and de- velop in ways that would bring honor to Lithuania and contribute to the civilization of the world. But on this February 16, in the year 1947, we meet to observe an independence which has been lost. The bright star of her freedom has been clouded over by the storm of tyranny which has been sweeping the world. Caught like other small nations between two powerful and ruthless enemies, she has been swallowed up by the victor. As a sovereign nation, Lithuania has ceased to exist. And in that tragic event, is a lesson for the freedom-hungry peoples of this earth. Free nations must stand to- gether, helping one another, or go down separately. Tyranny always waite in ambush for that unguarded moment when democ- racies are slow to awake to their peril and then it strikes. And for the sin of com- placency, free men must die by the millions. They must expend billions in treasure which took years of patient effort to build up. In saving freedom for some countries, they must watch it destroyed in others, helpless to do otherwise. We in the United States must bear some responsibility for this sin of complacency. During the years preceding 1939, when we might have joined with other peace-loving nations to build up a system of world law to outlaw aggression, we stood idly by. We tried to excuse ourselves by saying that what happened in Europe or elsewhere was no con- cern of ours. But what a price we had to pay to learn the facts of life. Over a quarter of a million of our young men crucified by our neglect, a@ million more crippled for life, and a debt of over $260,000,000,000 to burden us and our descendants for generations to come. All this and more we paid-to learn that no nation can live in selfish isolation. Because we shut our eyes to the storm warnings of the 1990's, we had to fight for our national existence. We survived, but sister democ- racies like Lithuania were crushed. Today America is the last true democracy on earth. This coming year we will spend to maintain our armed forces alone the stagger- ing sum of $11,000,000,000, a sum greater than the total cost of the Federal Government before the war. We must spend, and go on spending, until we and other nations build a system of world security which will save all nations from the fate which befell Lithuania. What we could have done with ease before, we must now do the hard way, because of our forgetfulness. As friends of Lithuania, we come not to mourn her passing as a nation, though !t grieves us to see her present enslavement. For, looking back through her history, we find grounds for believing that she will win her independence again. In the words of her ancient motto: “Be what may, Lithuania will always stay.” This is not the first time that she has been conquered by giant neighbors. Yet, even during centuries of oppression, she never lost sight of her goal. Deep in the heart of every Lithuanian, is that passion for liberty which never dies, Sooner or later the ma- terial power of aggression weakens. It cane not forever enslave people who are deter- mined to be free. A dozen times through her history, Lithu- ania has proved that her people can wait out the temporary triumphs of gangster na- tions. The Christian faith which, in 1399, hurled back the invasion of the Tartars, and saved all of Europe from barbarism, is still with her today. It gives her the spiritual vigor to outlive any dictatorship and win through to the inevitable victory of right over might. All over the world Lithuanians are gath- ering to renew their vows to work for the independence of their homeland. Nourish- ing themselves with the remembrance of her proud and valiant past, they draw new strength to face the job ahead. The robes of her nationhood are gone, but in time they can and will be replaced and then Lithuania will be numbered with the honored peoples who consistently fought for and won through to the goal of peace on earth, good will toward men. In the meantime, the mind and heart and spirit of Lithuania live on. Through ob- servances such as these, you keep the faith. You are proud of your religion, your language, and your culture, as you have every reason to be. I say to you, Keep them alive and flourishing in this God-given land of ours whose greatest wealth is what you and other peoples bring to it. Your ardent faith in and support of the cause of Lithuanian in- Gependence is also needed here in the United States. For it is giving to our democracy a vitality which will enable us to conquer whatever trials may lie ahead. In your churches, your homes, and socie- ties, do honor to the cherished customs and traditions of that land on the shores of the Baltic. To the youngsters in your homes, tell the stories of Lithuania’s greatness, so that they may carry with them this priceless heritage for their own enrichment and that of mankind. Take confidence this day in the knowledge that millions of your fellow Americans join with you in heart's desire for the liberation of your homeland. In the past we have slept On our respon- sibilities. From now on we must be vigilant. With this spirit I am confident that we shall meet on some other February the 16th to honor in fact as well as in faith the goal of Lithuanian independence, complete and secure for the rest of time. Lincoln’s Birthday EXTENSION OF REMARKS or HON. W. KINGSLAND MACY OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. MACY. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the following address made by me at the annual Lincoln Day dinner of the National Republican Club, at the Waldorf-Astoria in New York City, on the evening of February 12, 1947: Ladies and gentlemen, so short a time have I allotted myself for remarks that, with A617 your indulgence, I shall proceed forthwith, thus omitting to express adequately to the distinguished guests seated with me here on the dais and the many fine Republicans as- sembled at this beautiful occasion tonight the privilege and the honor that it is for me to address them. We are met tonight upon this historic annual occasion of the National Republican Club, with our party resuming its power in many States, and more especially in the branch of the Federal Government at Washington where I am just commencing my term. Dinners in commemoration of the birthday of the founder of our party, on the increase the past few years, have spread all over the country greater in number tonight than ever before. The example that has been set by this dinner of ours which has always been the outstanding annual Republican event, first at the old Waldorf and more re- cently here at the new, and held regularly through the long bleak period when condi- tions were against us, has evidently borne fruit. They say that imitation is the sin- cerest form of flattery. While in no wise wishing to diminish or disparage the glorious victory that gave our party a substantial majority in the House of Representatives and also a narrow margin in the United States Senate, I must sound a note of warning against overconfidence. To paraphrase Wordsworth we are entitled to enjoy the cheerful yesterdays of last Novem- ber and may be confident, but we should not be overconfident of our tomorrows. Too, I want to emphasize the necessity for carrying out our party’s pledges in the interpretation through legislation of what the voters clearly indicated last election in throwing overboard as they did the New Deal and all its works. Particularly in this great State of New York, without which Presidential success is never assured, we have had an administration that has commanded the support of our people in increasing numbers. It is coming to be gen- erally recognized that this fortunate result for our party has been due in large measure toa man who is a great humanitarian, a great patriot, an administrator and statesman of a very high order. To fit this distinction it seems hardly necessary to mention the name of Thomas E. Dewey, who supplies in abund- ance what we might well term election insur- ance for our party. Aware that a prophet is not without honor save in his own country, I shall not at- tempt to prophesy, but I will say that, with- out the slightest doubt in my mind, if the Democratic Convention were to be held pres- ently the nominees for President and Vice President would be, respectively, President Harry S. Truman and Gen. George C. Mar- shall. The extremely careful build-up for the general trends unmistakably, without questioning anyone's integrity, as leading to that ulterior purpose. It is, of course, true that the latter is the first high-ranking mili- tary man to hold the office of the United States Secretary of State. He has a diff- cult task in reconciling the psychology of the soldier with that of the diplomat. We will await with interest, and without too much confidence, the outcome of efforts at such reconciliation. What Lincoln might have been able to do had he been spared, would undoubtedly have contributed to a speedier resolvement of the war-torn internecine hatreds of his day. More of his firm purpose in the right is needed now to salve and assuage the wounds of the conflict so much broader in scope from which we are scarcely yet emerging. May God give to this Nation men of broad vision and stature like unto the martyr President and grant that we as a solid Republicun Party may give to them our united backing to the end so fervently sought.
A618 George Peabody’s Contribution to World Brotherhood EXTENSION OF REMARKS HON. BROOKS HAYS OF ARKANSAS IN THE HOUSE OF REPRESENTATIVES Tuesday, February 18, 1947 Mr. HAYS. Mr. Speaker, today is be- ing observed by the student body, the faculty, and the alumni of the South's greatest teacher-training institution, George Peabody College of Nashville, Tenn., as Founders’ Day. Among those being honored is one of the world’s wisest benefactors, George Peabody, whose philanthropies extended to millions in Europe as well as in America. His con- structive service for the South in endow- ing a great teachers’ college has meant much to the cause of education. That the life of generosity and self-effacement has endeared George Peabody’s memory to the people of another country as well as our own is demonstrated by a beautiful tribute to his memory by the British Am- bassador to the United States. The statement follows: To honor the memory of George Peabody is to pay tribute to one of the greatest of Americans and to one of the greatest pro- moters of friendship and understanding be- tween the English-speaking peoples. We may seek in vain, even among my own countrymen, past or present, for any one man who has contributed so much to the welfare of the working classes in England as did George Peabody. We may recall that Queen Victoria was so moved by what she described as his princely munificence that when she gave him her portrait she had inscribed on the frame the words, “Presented by the Queen to George Peabody, the benefactor of the poor of Lon- don.” I am impressed by the fact that all he touched with his philanthropic hand has prospered and grown. The high standard of education, not only in the South but throughout America, is in large measure due to his far-sighted endowment of your col- lege; while in the Peabody houses in London, which were the core of his great model hous- ing projects in England, there live today over 20,000 of the poor of London in some 8,000 separate dwellings. In thinking back upon George Peabody, we find not only the philanthropist but a man of honor and integrity, who gave to the world in good will and fellowships gifts far more precious than all his princely munificence. Let us take that spirit of brotherhood, which your founder infused into all those about him, as the basis of understanding between peopl-s today, for without it we shall fail in our task as surely as he succeeded in his. Bureaucracy Beats a Retreat EXTENSION OF REMARKS HON. HAL HOLMES OF WASHINGTON IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. HOLMES. Mr. Speaker, under leave to extend my remarks in the Rec- orD, I include the following speech de- livered by the Honorable Julius A. Krug, Secretary of the Interior, at the Tieton Pay-Off Celebration held in Yakima, Wash., February 14, 1947, on the sub- ject Bureaucracy Beats a Retreat: I came here from Washington to thank you Yakima Valley farmers for a check in the amount of $15,648.60. When this check has been deposited in the United States Treasury, the farmers of the Tieton Division will have paid the last penny of their debt of more than 63,500,000; the amount spent by the Bureau of Reclamation 37 years ago in bulld- ing the irrigation system that waters your lands. Nowadays a $15,000 check arriving at the Treasury's receiving window does not cause any eyebrows to lift, and an expenditure of $3,500,000 on a Federal project does not seem especially large. The significance of this occasion is in what has been accomplished with that 63,500,000 investment. Some of you were here in 1910 when the Tieton area was a sagebrush desert about to receive its first water from the new canals. You have seen the Federal Government, through the conservation and use of the precious water resources here in the Yakima Valley expand the national production, cre- ate $150,000,000 of new wealth, and provide homes for more than 1,000 families on 25,000 acres of land that formerly was not even good sheep pasture. Last year these Tieton lands produced crops of an average value of $750 per acre. Since they were first irrigated, each acre of this former desert has pumped new purchasing power of more than 85,000 into the arteries of our national commerce. Uncle Sam put his money into this ven- ‘ture under a wise law that was the keystone of the conservation program of Theodore Roosevelt. The reclamation law has been supported by every administration since that time. It is not a partisan matter. Here on the Tieton Division, Uncle Sam has now got his money back, dollar for dollar. In the meantime, the Treasury has sent its tax col- lectors to these former sagebrush mesas that are now dotted with apple and peach or- chards. While the exact figures are not at hand, it is clear that the Federal income taxes paid by farmers and businessmen who have earned their livelihood from these lands have greatly exceeded the cost of the entire irriga- tion project—the cost that has, in addition, separately been repaid in full by direct pay- ments from water users. The picture I am trying to paint might be better seen through a comparison. What has been done by irrigation here is as though in 1910 a barren island had been purchased by the United States for 83,500,000. Settled by our citizens, this island since then has supported a thousand families in comfort and prosperity on farms, and even a greater number in the towns and villages that have grown up among them. It does not stretch the imagination to compare an irrigation project with an island, since these irrigation projects are the only islands of intensive farming in vast unproductive expanses of the West which make up nearly half of all the land within the United States. These projects stand out in the sagebrush desert much as islands dot the aea. You men and women on the Tieton farms should be especially proud. This check for $15,000 is your final payment. Yours was one of the first irrigation districts established under the reclamation law and you have now carried out in full the contract made 37 years ago, This is the first final payment by any irrigation district. You have changed the desert to verdant fields and orchards, Through the years, out of your earnings from the watered land, you have provided funds by your payments which the Department of the Interior has re-in- APPENDIX TO THE CONGRESSIONAL RECORD vested in other irrigation projects in the West. Several of these new islands of pro- duction which have been helped by the ful- fillment of your contract are already the homes of new pioneer settlers who, in turn, are beginning to repay their contractual obligations and thus recreate and increase the reclamation fund for other new develop- ments. I take pride in turning over this project to you—to your own elected officials, in order that it may continue to irrigate your farms under your direct control. Uncle Sam built the project. You have repaid his cost and this irrigation system is now yours to ope- rate and take care of. The Bureau of Rec- lamation will always stand ready to assist if you require help, but here is bureaucracy beating a retreat as planned. Here is the Federal Government, having extended a helping hand to its citizens, bidding them God-speed and withdrawing. Here is de- mocracy creating vital projects which work for the people, and then, when the task is done, leaving the people, strengthened and self-reliant, to carry on. That was Jeffer- son's Way, expressed in his words, “He gov- erns best who governs least.” Reclamation has worked here in the Yakima Valley and it has worked in similar valleys through the West. Four million acres of irrigated land have produced $%5,000,000,000 in new American wealth. That partner of irrigation, hydro- electric power, created as a by-product, serves industries, towns, cities, and farms with electric energy to improve living conditions for millions of people. The Congress wisely has authorized the expansion of the reclama- tion program s0 that it will reach twice the population now served. New irrigated lands and more power are to be made available in the years ahead in every State from the Missouri! River and the Rio Grande to the Pacific. I agree with the western people who feel that true economy can best be achieved by completing these authorized projects speedily so that production will start paying back the Government's investment. Veterans are clamoring for a chance to clear the sage- brush and to farm these lands. They need living space now and a hungry world needs food. Among the projects authorized and under construction is the gigantic Grand Coulee Dam power and irrigation project just across the Columbia River from the Yakima Valley, which will develop an area about the size of Delaware. On these lands, now for the most part sagebrush, new farm homes and great new towns and cities will develop within as many years as have passed since the Tieton ranches were settled. It will be like the ad- dition of another State to the Union, like a gradual reopening of the western frontier. There will be difficulties surely, but there will be fewer heartbreaks and failures than have ever been experienced in the opening of a new land area. It won't be like Daniel Boone leading the hopeful into unmapped territory. More than 40 agencies have coop- erated with the Bureau of Reclamation to prepare the plans for development of these new farms and communities. Your experi- ence here in Tieton and throughout the Yakima Valley—the agencies of the State of Washington, the Department of Agriculture, and all bureaus of the Department of the In- terior, your State college at Pullman, and the State experiment station at Prosser right here in your own valley, each played an im- portant and coordinate part. Carrying forward its program in the Pacific Northwest, the Department of the Interior has just completed a comprehensive report for the full use of water and other resources of the Columbia River Basin through a de- velopment yet to be authorized.
APPENDIX TO THE CONGRESSIONAL RECORD This report shows that no other section of the United States is so favored with unde- veloped hydroelectric power, with trrigable lands that can be reached by diversions from rivers with abundant water. The addition of nearly 4,000,000 acres of new land and of millions‘in kilowatts of new generating capacity will more than double the present irrigated ar2a in the basin and increase the hydroelectric power installations here fivefold. Truly multiple purpose—the plan provides for the delivery of needed sup- plemental water to 40 percent of the area now irrigated—provides for flood control, navigation, recreation, fish and wildlife, silt control, and pollution abatement. The irri- gation, drainage, and diking devélopmentse will support a new farm and city population of about 750,000. Low-cost power will bring new industries—develop mineral resources now untouched—foster a more efficient and fuller use of agriculture and forest re- sources—and through the new private busi- ness undertakings create the basic oppor- tunities that should double the population o” the Pacific Northwest. This new power, these new farms and in- dustrial and trade opportunities for this new population will be made possible only if we treat the whole Columbia River Basin as a unit—a unit in its water resource and in the financing of its full development. We must refrain from dividing the basin into prov- inces and principalities. It is one basin with one common water resource. Power from Grand Coulee Dam, generated because of heavy snows on the Continental Divide, is transmitted throughout the basin. Full irrigation development in western Mon- tana, Idaho, western Wyoming, Oregon, and Washington can be had only by being joined with the downstream dams which transform into power the entire flow of the river, re- gardless of its source. The Interior Department proposes to achieve the financial stability for full basin development by pooling the costs of all the Works and all the revenues by which these costs are repaid. When this is done, it should be clearly apparent to Congress and to the country that this is, even in the banker's sense, an investment which will pay out. In 1910 there were scoffers who said that the desert could not be beaten back and that the Tieton project would be a dismal! failure. In 1947 the cynics who are the direct de- scendants of those same scoffers probably will contend that this new program for the Columbia River Basin will not pay out. They were doubtful that the power from Grand Coulee Dam would ever find a market. When the war came along and used this power, they said it would go begging when peace returned. But it hasn't; the tremendous de- mands being made on the Bonneville Power Administration which sells the power from Grand Coulee and Bonneville Dams conclu- sively proves that. The wartime peaks were surpassed in the fall of 1046, and now the demands are hitting new highs almost every week. ‘What has been done through the construc- tion of the great dams on the Columbia River toward the development of the Pacific North- west, what you have done here in the Yakima Valley through the irrigation of the lands that were once desert will be done again and again in communities yet to be established from the remotest creek at the Continental Divide to the mouth of the Columbia River at Astoria. The day will come when the final check of repayment will be delivered to the United States Treasury for all the developments on the Columbia River system. In that day and time, the Columbia River Basin will no longer be an area of undeveloped resources. It will have new millions in population. It will have great new factories and industries, and its agriculture, like the Yakima apple, will be famous throughout the world, 1946 Operating Less of Pennsylvania Railroad EXTENSION OF REMARKS HON. ALBERT W. HAWKES OF NEW JERSEY IN THE SENATE OF THE UNITED STATES Wednesday, February 19, 1947 Mr. HAWKES. Mr. President, I ask unanimous consent to have printed in the Appendix of the ConcressionaL REC- ORD a newspaper article appearing in to- day’s New York Times. This newspaper story covers the state- ment made by Mr. Martin W. Clement, president of the Pennsylvania Railroad Co., as he filed the 1946 annual report of the company. Mr. Clement an- nounced that for the first time in its 100-year history, this, the largest rail- road in America, operated at a loss, de- spite excellent management. Mr. Pres- ident, I ask the people of the United States to take notice of this statement and to look across the water to England where, along with many other industries, the railroads have been nationalized. This statement could be a milestone on the road of approach to socialism here in our country, if the pressures Govern- ment regulations have brought to bear upon the railroads are not relieved. There being no objection, the article was ordered to be printed in the Recorp, as follows: THE PENNSYLVANIA(’S FIRST LOSS IN HISTORY LAID TO UNITED STATES CURBS—-CLEMENT RE- PORTS RECORD PEACETIME FREIGHT, PASSEN- GER LOAD IN 1946 “ROUGHT DEFICIT OF $8,530,317—-SCORES RATE RISE PHILADELPHIA, February 18.—Blaming Government regulation, the Pennsylvania Railroad announced today that in 1946, for the first time in ite 100-year history, it op- erated at a loss. At the same time, Amer- fca's largest railroad in ite annual state- ment reported it transported more freight and passengers than in any previous peace- time year. Martin W. Clement, president, said that “with the volume of business handled, the company should have had a substantial net income, which, aftcr taxes, would have pro- vided for a normal dividend as well as a sum equal thereto to be spent on the property. “This would have been good for the coun- try, for the company, for the employees, and for the stockholders. “The unsatisfactory results for the year were due very largely to the impact of the forces of Government regulation.” The report declared that the increase in freight rates of about 17.6 percent, author- iged by the Interstate Commerce Commis- sion, effective on last January 1, is wholly inadequate to meet increased costs imposed upon railroads if the industry is to be sus- tained in a healthy and progressive con- dition. “Financially sound railroads,” Mr. Olem- ent asserted, “are the backbone of an eco- nomically and socially sound nation. From the standpoint of the public as a whole, It is much better that rates be raised high enough for the carriers so to advance the art of transportation that economies will be produced in order that over a period of time reductions in the cost of transportation will result, rather than to hold the rates to such a low point that proper expenditures cannot be made to produce economies.” A619 The deficit for 1946 was @8,530,317, in con- trast to a net income of 649,008,238 in 1945. To the deficit was added @2,820,199 of con- struction expenditures and advances to leased and affiliated companies, borne by the Penn- sylvania. This brought the total loss to $10,- 850,516. Operating revenues for the year, at $822,- 007,585, were down 6114,445,826, due, the road said, to the decline in war traffic and strikes in major industries. Operating expenses were $745,676,400. The road said that net railway operating income—operating revenues less operating expenses, taxes and equipment and joint facility rents—represented a return of less than 1 percent on the investment in road and equipment, lowest figure in the com- pany’s history. The 1045 return was 3.09 percent. Mr. Clement, referring to the wear and tear on the railroads aggravated by intensive use during the war, asserted it is important that needs for new plant and equipment be met and not further deferred if rail trans- portation is to advance as it should. The statement noted that during the year 37 steam locomotives and tender» were received, completing an order placed during 1945 for 50 high-speed passenger locoznotives with 6,500 horsepower. ‘ The Pennsylvania said that it has on order 49 Diesel electric locomotives. This fleet, the statement said, will haul through Passenger trains between Harrisburg, Chicago, 8t. Louis, Detroit and Cincinnati. In 1946, the statement added, the road experimentally established the first regular daily through sleeping-car service from coast to coast. The Budget and Tax Reduction EXTENSION OF REMARKS HON. HAROLD KNUTSON OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. KNUTSON. Mr. Speaker, there is & universal demand that Congress and the President act promptly to set our financial house in order. The American people, without regard to political con- siderations, insist that the budget of thirty-seven and five-tenths billions sub- mitted by the President is perfectly fan- tastic and out of all reason. The Ameri- can people cannot understand why the President should ask for a budget four times as large as the largest Roosevelt peacetime budget for the fiscal year 1948, which will be 3 years after VJ-day. y have seen the wastefulness of Govern- ment spending in all parts of the coun- try, the duplication in services, the padded pay rolls, and they are now de- manding in language that cannot be misunderstood that spending be pared to the bone. Mr. Speaker, I think that a recent edi- torial in the Minneapolis Morning Trib- une pictures the sentiment throughout the country very well. It is entitled ‘The Will To Cut Budget Is the Important Thing,” and reads as follows: Tue Wr To Cur Bouncer Is THE IMPORTANT THING Every time the question of the Federal pay roll comes up, there is a flurry of excite- ment in Washington and charges are made
A620 that those who are interested in Govern- ment economy actually are interested in crippling Government operations. A Washington columnist views with great alarm the latest suggestions that the Fed- eral pay roll be reduced. The talk of pay- roll economy, he says, is demoralizing the staffs of Government offices. And other de- fenders of the public pay rolls raise the old question of “where are you going to start?” The latter question was pretty well an- swered by Attorney General Clark when he appeared last week before the Senate Civil Service Committee to tell about the 25,000 people who work under him in the Justice Department. “I have been in the Justice Department now for 10 years,” Clark said. “And the thing that impresses me in the Government is the fact that a fellow always likes to have as many people working under him as he can.” THE SORE POINT OF UNITED STATES PAY ROLL Then Clark put his finger on the sore point of Federal pay rolls. The Government, he explained, sets a worker's salary on the basis of the number of employees he has working for him. In Government, unlike business, the more workers an employee has under him, the higher his salary. This leads to competition between department and bu- reau chiefs which results in a sort of infla- tion of the Federal pay rolls. Clark's suggestion as to how the Govern- ment could cut the padding out of Federal pay rolls was so simple it was amazing. He suggested simply that Congress issue a state- ment of policy saying that the number of stenographers a Government worker had will bear no relationship to his salary. Thirteen years of heavy, if not careless, spending have left few people in Washington with any first-hand experience with a Gov- ernment that honestly tried to cut expenses. Government personnel, from the experts on down, is rather heavily indoctrinated with the idea that to cut Federal spending is to commit an offense against the public in favor of a few demagogues. This Congress has more control and better organized control of fiscal affairs than its predecessors. For the first time it has the services of an over-all budget committee— which means that appropriations and rev- enues can be considered as the two sides of a single proposition. The recently increased authority of the controller general, con- strained and subverted during the Roosevelt administration, gives Congress a better check on Executive expenditures.. The many Gov- ernment corporations finally have been brought under legislative jurisdiction. The effectiveness with which Congress uses its new tools to eliminate extravagance and the fashion of extravagance depends upon the insistence of the country. The imme- diate figure of such cuts is less important than a real demonstration of a determina- tion to begin cutting. And the beginning, in\turn, is less important than a public-sup- ported determination to carry it through. Mr. Speaker, in order to prove to the House that the demand for economy and tax reduction is not confined to any one party or section of the country, I ask to also have inserted an editorial from the Tampa (Fla.) Times of February 11. It is entitled “Deceptive Propaganda in Budget, Tax Controversy,” which I hope that every Member of the House will read: DECEPTIVE PROPAGANDA IN BUDGET, TAX CONTROVERSY Several marked deceptions are being prac- ticed in the controversy over tax reduction and the Federal budget for the next fiscal year, The practitioners are the left wingers and those Truman administration supporters who are crying crocodile tears over the fate of the little taxpayer if the Republicans give a blanket 20-percent tax reduction. Americans who conscientiously want to know where the fault lies, can get enlighten- ment on the entire subject by studying sta- tistics gleaned from official United States Treasury figures. Such an approach to the problem was undertaken by Phelps Adams, & special writer for the New York Sun, and the high lights of what he found are glaring com- mentaries on the propaganda emanating from Washington. To begin with, the chief fiscal difficulties stem from President Truman’s insistence that the Government will need $37,600,000,- 000 to operate in the next fiscal year. That js an incomprehensible sum—even more than the Government succeeded in spending in its busiest wartime year—1942. That year, going at full blast, actual Federal expendi- tures were only $32,400,000,000, according to figures dug up by Mr. Adams—five billion less than Mr. Truman wants for next year. The prodigality of Mr. Truman and his liberal friends who urge him to stick to such vast spending can be cast into even more ridiculous proportions when compared to the Federal Government’s total expendi- tures from the date when the Government was founded ‘in 1789 until 1917, when it was half way through the First World War. Dur- ing that period of 129 years Federal expendi- tures amounted to $28,700,000,000, and that included paying off debts incurred in the Revolutionary War, the War of 1812, the Mex- ican War, the Civil War, and the Spanish- American War. Yet Mr. Truman would spend the equal of that in the first 9 months of the new fiscal year beginning July 1. Bricfly that gives an idea of the excessive burden the spenders want to place on this country. Now, what of the little taxpayer? Can he be materially relieved? The same propa- gandists that insist on the big budget like- wise would have the voting masses think re- ductions can be made to relieve the little feHow and make the taxpayers with large incomes pay the biggest part. On that point Mr. Adams has uncovered some more interesting facts. He found that, if all incomes amounting to more than 85,000 per year were taxed 100 percent, not leaving @ penny to these taxpayers on which to live, the total revenue to the Government would be only $15,000,000,000. Under Mr. Truman's more-than-837,000,000,000 budget proposal, $22,500,000,000 would still have to come out of the so-called little fellow. In other words, if tremendous budgets are going to be con- tinued, the little fellow cannot possibly es- cape taxation in one form or another, direct or hidden, no matter what fairy tales the left wingers, CIO, and liberals of every stripe dream up to confuse the American people. Further study of the 1942 Treasury income- tax returns by Mr. Adams shows that 96 percent of all the income-tax payers in the Nation are in the brackets below $5,000, and that fewer than one-quarter of 1 percent earn over $25,000. More than 81 percent of all the net income of all the income-tax payers put together is received by persons earning less than $5,000 a year and less than 6 percent of it goes to persons in the @25,000 brackets or above. Of all the taxes collected in 1942, he says, only 25 percent came from those earning more than $25,000 a year, the other 75 percent had to be taken out of the incomes of the lower and middle-class brackets if it was to be collected at all. What is more, it must be kept in mind by all those low-income families who do not file income-tax returns because of sufficient exemptions, that nevertheless they pay many Federal taxes. These are the hidden taxes, consisting of manufacturers' taxes, excise APPENDIX TO THE CONGRESSIONAL RECORD taxes on liquor and cigarettes, so-called lux- ury taxes, and even the cost of corporation income taxes are reflected in the prices of goods which the small income earner must pay for the necessities of life. In short, taxes in one form or another are inescapable by the little fellow in order to make up €22,500,000,000 portion of the budget he must furnish. The salvation of the little taxpayer is not and cannot ever be found in shifting the purden to the rich, as long as astronomical budgets are planned by the administration. The Republican-promised economy drive must be carried through to reduce costs of government. The padded Federal pay rolis must be slashed unmercifully and the cradle-to-the-grave paternalism of the last decade must be curtailed to the lmits of reason. Unless the American people are willing to return to the basic truth that the Govern- ment cannot create something out of noth- ing and that an honest day's toil must be given for a fair day’s pay without constant Gependence upon the Government to sub- sidize the standard of living, a solid foun- dation for productive industrial enterprise cannot be restored, Cutting the Budget EXTENSION OF REMARKS HON. EDWARD J. DEVITT OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. DEVITT. Mr. Speaker, under leave to extend my remarks in the Con- GRESSIONAL ReEcorD, I desire to include the following editorial which appeared in the St. Paul Dispatch, St, Paul, Minn., on February 15, 1947: CUTTING THE BUDGET The alarm of military officials over the de- cision of the congressional budget commit- tee to make six billions the goal of Federal expense cutting is premature. This decision in part refiects the necessity felt by most Republican Members of Congress to get President Truman's budget down where some substantial tax cutting and debt payment will be possible. It also reflects a belief, based on preliminary studies, that there is a great deal of waste and duplication and other unnecessary expense concealed in the thirty-seven and one-half billion dollar estimate for next fiscal year. What Congress actually appropriates, how- ever, will be another matter. If no material cut of the $11,200,000,000 estimate for the Army and Navy is possible without actually endangering national defense, that fact pre- sumably can be proved by the experts of the armed forces. The vote of 50 to 22 on the $6,000,000,000 reduction goal shows that a considerable doubt exists on this point. If these doubts become certainties, the cut will be less than six billion. But in the meantime, Federal department and bureau chiefs are put on notice that the budget is going to be reduced, and tke wisdom with which it is done will depend in no small degree on whether they give their cooperation or not. Each one has his little or big bureaucratic empire. tecting those empires is not necessarily in the public interest. The job in hand is to deflate them to the minimum required by public interest and bureau chiefs are the Qnes who can do this best if they are minded to cooperate.
APPENDIX TO THE CONGRESSIONAL RECORD Cooperatives or Free Enterprise? EXTENSION OF REMARKS HON. GEORGE B. SCHWABE OF OXLAHOMA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. SCHWABE of Oklahoma. Mr. Speaker, the rapid growth of coopera- tives in this country during the last few years, and their immunity and exemp- tion from the payment of certain taxes, have been the subject of widespread dis- cussion. I have read an article by Mr. Walter Biscup, of the Tulsa Daily World editorial staff, published in the Tulsa Sunday World of February 2, 1947, which I think is most illuminating. This article contains a fund of valuable information and statistical data which should be studied by the Members of Congress. Therefore, I have asked and obtained unanimous consent to have printed in the ConcressIonaL Record the entire ar- ticle by Mr. Biscup, entitled “Coopera- tives or Free Enterprise?” The article fellows: COOPERATIVES OR FREE ENTERPRISE? (The Consumers Cooperative Association’s glossed brochure says: “Today, world coopera- tion in petroleum is here. Tomorrow, or the day after, a world oil cooperative.” (By Walter Biscup) The United States of America can become the center of world ‘socialism unless Con- gress immediately curbs the sweeping ad- vances of the cooperative movement. Our economic necromancers, both official and private, have not only nurtured and en- couraged this process in our way of living and doing, but have incited it to today’s astounding proportions. Consumer cooperatives in this country are doing an annual $12,000,000,000 business tax- free. More than 1,700,000 members belong to these 4,646 consumer cooperatives and the number is increasing daily. All this in ad- dition to various other forms of cooperative enterprises. As recipients of special favors from the Federal Government, United States coopera- tives are collectively becoming the keystone in a gigantic economic arch which is span- ning the globe—from continent to continent and ocean to ocean. Cooperatives were and are inspired by the dogma of socialism. Theirs is an economic theory of social organization based on collec- tive or governmental ownership and demo- cratic management of. the essential means for the production and distribution of goods. They aim to replace competition by co- operation and profit seeking by social service. What began as a slow evolutionary trans- formation of capitalist into socialist society is now cascading into a vortex which threat- ens to engulf the entire stream of free en- terprise. Cooperatives can, and do, cater to your wants from the cradle to the grave—with air- plane trips in between. They manufacture $2 different lines of goods and offer you an equal variety and amount of special services, all tax-free. The complacency of business toward co- operatives is startling. At the current rate of progress there could well be a day in the coming generation when the cooperatives and the Federal Govern- ment would operate all business in this country. The forbearance of the petroleum indus- try to this menace is equally discouraging. Present plans are being formulated for a world oil cartel, And it will be the cooperatives manipulat- ing this gigantic sinew of peace and war. They openly say 80. Like Soviet Russia the cooperatives also have their 5-year plan and they call it that. The oil cartel is not preposterous. It is immediate. Dangerous, Threatening. Take the word of Howard A. Cowden, of Kansas City, Mo., president of the Consumers Co- operative Association, the largest in the pe- troleum field, Last November he reported on a trip to Zurich, Switzerland, where a pro- gram was outlined at an international co- operatives meeting to launch.a world-wide petroleum cooperative. The authorized capi- tal of this cooperative will be $15,000,000. Cowden then told his fellow-workers: “It (the cartel) will start modestly as a broker of petroleum products, moving grad- ually into every phase of the industry.” Cooperatives have had more than a cen- tury of training and experience in the field and strategy of infiltration. There was nothing bombastic in Cowden’s report. His background and record prove him an executive of singular ability. Cer- tainly in the cooperative fleld, because, with- in 17 years and beginning with a mere $3,000 in capital, he pioneered and built up the largest oil cooperative in the United States, one which today is capable of and does deal in multi millions. Cooperatives today are undoubtedly the most disputive chapter in our book of eco- nomics. The history of cooperatives, here and abroad, as well as the history of our tax legislation, must necessarily be taken into consideration before a proper evaluation can be made of this all-important subject, Cooperation, in its widest sense, has prob- ably existed since the beginning of mankind. In some countries, such as China, Yugoslavia and Russia, primitive forms of cooperatives are known to have been carried on as far back as history goes. One Russian authority states in that country cooperatives are at least 1,000 years old. In the early days in Yugoslavia, family and village life was all organized on the “Zadruga” or cooperative basis, Even in the modern form, the consumers cooperative movement is already 100 years old and celebrated its centenary in 1944. The first cooperative store was open only in the evening and had as its sole inventory a small amount of butter, sugar, flour, tea, and oat- meal purchased with the shillings painfully saved by its poverty-stricken members—28 cotton weavers in the town of Rochdale, England. This origial store of the Rochdale Pioneers, in Toad Lane, now restored to its initial architecture, is a museum and the mecca for cooperative travelers. In the 100-year interval, the idea that ani- mated the Pioneers spread all over the world. Today there is hardly a country without some sort of cooperative. In Europe this associa- tion is the predominating type. In Asia and the Far East, credit cooperatives have usually predominated. In agricultural countries, farmers have banded together in cooperatives, The last official census, before European hostilities began in 1989, showed more than 800,000 cooperatives of various types in that continent, with a membership of 145,000,000 persons. In the United States the first instance of consumers cooperatives occurred in 1845 when a Boston tailor, whose name has been lost in antiquity, induced the members of his labor union to undertake joint buying of their household supplies and distribute them at the weekly meetings of the union. An- other labor organization, the Knights of Labor, actually fostered cooperatives as part A621 of its economic program during the early 1880's. United States consumer cooperatives today provide the following goods: Groceries, meats, clothing, shoes, dry goods, furniture, bakery products, coal and wood, dairy products, electrical appliances, hard- ware and other household supplies, books, students and office supplies, occupational supplies, drugs, cosmetics, luggage, gasoline, other fuels (kerosene, etc.), motor oil, grease, tires, tubes, batteries and other automotive accessories, paint, lumber and building ma- terials, flour, feed and seeds, fertilizer, farm supplies, automobiles and trucks, sports goods, caskets and funeral supplies and mis- cellaneous supplies. Services rendered by cooperatives include: Automobile repair, barber, cold storage, beauty parlor, educational courses and facili- ties, funerals, funeral contracts, laundry and ary cleaning, houses and apartments, insur- ance agencies, medical care, medical care contracts, passenger transportation, meals, shoe repair, study clubs, printing and pub- lishing, automobile storage, rooms. social and recreational facilities, tailoring, auditing and accounting, water for family use, parking lots, greasing and tire repair, steam heat, credit facilities, electrical contracting, truck- ing, facilities for airplane flying, and services not otherwise classified. Minnesota is the hotbed of the cooperative movement with 419 units. Oklahoma has 74, The United States Department of Labor’s directory of consumer cooperatives shows the following: Alabama, 80; Alaska, 5; Arizona, 16; Ar- kansas, 30; California, 105; Colorado, 59; Con- necticut, 33; Delaware, 1; District of Colum- bia, 14; Florida, 38; Georgia, 18; Idaho. 48; Illinois, 342; Indiana, 125; Iowa, 249; Kansas, 306; Kentucky, 12; Louisiana, 11; Maine, 22; Maryland, 34; Massachusetts, 71; Michigan, 304; Minnesota, 419; Mississippi, 13: Missourt, 193; Montana, 125; Nebraska, 284; Nevada. 53; New Hampshire, 10; New Jersey, 62; New Mex- ico, 6. New York, 183; North Carolina, 21; North Dakota, 172; Ohio, 190; Oklahoma, 74; Oregon, 74; Pennsylvania, 162; Rhode Island, 5; South Carolina, 11; South Dakota, 143; Tennessee, 13; Texas, 119; Utah, 12; Vermont, 9; Vir- ginia, 37; Washington, 115; West Virginia, 6; Wisconsin, 842; Wyoming, 18. Tulsa has no consumer cooperative. In Oklahoma they are located at Altus, Alva, Apache, Bartlesville, Bessie, Billings, Bison, Blackwell, Boise, Buffalo, Burlington, Carmen, Carnegie, Cashion, Cherrokee, Cleve- land, Clinton, Cushing, Custer, Cyril. Da- coma, Douglas, Elk City, El Reno, Fargo, Fort Cobb, Freedom. Garber, Goltry, Griggs, Hillsdale, Hinton, Hobart, Hollis, Hooker, Imro, Jet, Kremlin, Laverne, Lawton, Lexington, Lone Wolf, Man- chester, Medford, Moorland, Morrison, Moun- tain View, Mulhall, Nash, Newkirk, Norman, Okarche, Okeene, Oklahoma City, Perkins, Perry, Pond Creek, Putnam, Ralston, Redrock, Rocky, Snyder, S8tilwater, Thomas, Tonkawa, Vici, Wakita, Waynoka, and Weatherford. Cooperative organizations, wherever they have taken root, have had certain character- istics which set them apart from all other forms of business activity. These are (1), open membership, (2) one vote per member, (8) return of surplus earnings to members in proportion to the amount of their patronage of the cooperative enterprise, (4) limited return on members’ investments, (5) polit- ical and religious neutrality, (6) transactions of business on cash basis only and at current prices, and, (7) promotion of education in the cooperative philosophy. This philosophy says the essence of co- operative development is that it is the vol- untary achievement of free people, working on a democratic basis for the attainment of definite social and economic ends,
A622 In this respect it is a twin, as well as a strong supporter of labor unionism. It should be remembered that such divi- dends as the cooperative consumer gets are based upon the amount of purchases he makes. Supposing he buys $100 worth of merchandise in 1 year from a co-op grocery, his dividend return (normally about one-half of the earnings) would be based upon the amount of his purchases. The other half is held for educational purposes (to further the spread of the gospel of cooperation.) Income taxation was first proposed in the United States in 1812 as a means of financing the war with England, but the proposal was not adopted. Again the exigency of war, this time the Civil War, brought forward another movement to tax incomes. The Direct Property Act of August 5, 1861, imposed a modest 8 percent tax on the excess of all incomes over $800. This tax, however, was not collected and the law was repealed by the act of July 1, 1862. The new law levied at 3 percent on certain incomes and 6 per- cent on higher incomes. Income taxation continued in effect until 1871 when this act expired and was not reenacted. Then there was a lapse of 23 years before another income tax became effective August 28, 1894. This act was declared unconstitutional. Fifteen years elapsed before the enactment of a corporation excise tax in 1909. The acts of 1909 and 1913 both exempted certain types of nonprofit concerns from income taxation, including agricultural organizations, In succeeding revenue acts, the exemption provisions were gradually augmented and clarified. Each revision broadened the range of exemption eligibility for agricultural organizations. In 1926 Congress practically rewrote the entire section concerning the ex- emption of farmers’ cooperatives. With but one slight addition made in 1934, it so stands today as section 101 (12), Internal Revenue Code, Revenue Act of 1941. This section, this code, this act, and this law furnish the cooperatives with the legal leverage to pry themselves loose from income taxes. This act, however, has 19 different sections granting exemption to a variety of organiza- tions. In addition to farmers’ cooperatives, these include such activities as fraternal beneficiary societies, labor unions, building and loan associations, charitable and reli- gious organizations and corporations, educa- tional institutions, ho&pitals, business leagues, clubs, certain mutual companies, etc, The United States Treasury Department reports more than 300,000 such organizations have secured exemptions. Congress, it is assumed, saw fit to grant exemption to the foregoing type of organi- zation, when they operate in a prescribed manner, probably for the reason that their existence is considered beneficial to the gen- eral public welfare. Specifically section 101 allows tax exemp- tion to farmers, fruit growers, or like asso- ciations organized, and operated on a co- operative basis (a), for the purpose of mar- keting the product of members or other producers, and turning back to them the proceeds of sales, less the necessary market- ing expenses, on the basis of either the quan- tity or the value of the products furnished by them, (b) for the purpose of purchasing supplies and equipment for the use of mem- bers and other persons and turning over such supplies and equipment to them at actual cost, plus necessary expenses. The reader may well ask how a cooperative can compete directly with a private company in the oil industry without paying taxes. Federal statutes do not give agricultural products a sufficiently broad definition to include petroleum products. The term is not defined in applicable Federal legislation or law, But the United States Treasury De- partment has held that petroleum comes under the definitive classification of agri- cultural products, The perplexing question relating to the petroleum industry is just as relevant to all other lines of business. For the current fiscal year the National Budget is $39,800,000,000, Profits of private corporations, according to the National Tax Equality Association, are taxed twice. The corporations pay Fed- eral income taxes on their profits, and stock- holders pay individual income taxes on divi- dends they receive, which are added to their income in their tax returns. The cooperatives correspond in form of organization to private corporations. The members are the cooperative stockholders, receiving their dividends as “earnings” or “savings.” But the cooperative corporation or organization pays no profit tax. The only tax the Government may collect is on the incomes of individual members. In most in- stances the savings are actually paid to the member but are retained by the cooperative for expansion purposes. This exemption from Federal income taxes has resulted in scores of industries—unable to compete with tax-free cooperatives—sell- ing out to the cooperatives or becoming co- operatives themselves. And why not? Petroleum cooperatives attained their in- dustrial majority shortly before World War II, utilizing tax-free, swollen profits and pro- moted by governmental favors and special privileges, They have rapidly expanded their activities into the fields of production and refinery operation. The many unequal com- petitive advantages enjoyed over privately owned oil companies have in truth and fact made them formidable competitors in the petroleum industry. Cooperatives are influenced by the same economic factors as private enterprise, but they have prospered disproportionately as a result of the artificial stimulants applied by a benevolent Government. Exemption from income and excess-profits taxes and busi- ness regulatory laws, together with govern- mental credit and special privileges, have enabled them to absorb many independent distributors and refiners, Oil men, in Tulsa and elsewhere, paid little or no attention in 1929 when six local coop- erative associations in Missouri, Kansas, and Colorado decided by pooling their orders for petroleum products and other farm supplies they could get lower prices and be in a better position to insist on quality of product. This cooperative had $3,000 capital. At the end of the first year it had done a business vol- ume of $309,890.70 and had made net savings of $5,221.44. This gave no indication of things to come. The Consumers Co-operative Association of North Kansas City Mo., then began com- pounding lubricating oil, manufacturing grease and also established a paint factory. Then it built in 1942 and placed in operation at Phillipsburg, Kans., the first petroleum refinery (3,500 barrels) and the first crude oil gathering pipe line (70 miles) ever owned by & cooperative in the United States. On October 11, 1940, it became the first cooperative ever to drill an oil well. This successful well was brought in near Laton, Kans. A year later the CCA purchased a 1,600-barrel refinery at Scottsbluff, Nebr. In July 1943, the CCA and four other regional cooperatives bought a 17,500-barrel refinery at McPherson, Kans., and its 229-mile pipe line to Council Bluffs, Iowa. January 1, 1944, the CCA bought the 13,500-barrel re- finery at Coffeyville, Kans., which had in con- nection with it a lubricating oil refinery that produced more than 20,000,000 gallons of mo- tor oil in 1945-46. In the meantime it kept on moving into larger quarters in North Kan- sas City and finally acquired and occupied a APPENDIX TO THE CONGRESSIONAL RECORD five-story, with basement, building in Kan- sas City. After only 2 years occupancy this building has become congested. The CCA paid $800,000 for a controlling in- terest of the Bridgeport Oil Co., of Wichita, Kans., last December 16. On January 1 this cooperative paid several million dollars for the Coralena Oil Co,, of Tulsa. This firm owned 162 wells in western Kansas, 27 in Osage County, Okla., and 20,000 acres of de- veloped and undeveloped leases in Ellis and Russell Counties, Kans. The Bridgeport Co. owned 99 wells in central Kansas, two rotary drilling rigs and 65,000 acres of oil leases, with wells, principally in Barton County, Kans. Prior to thig the CCA and its subsidiaries had acquired four refineries, 867 miles of pipe lines and 289 producing oil wells. So successful were the operations of the CCA that James P. Warbasse, president emer- itus of the Cooperative League of the United States, speaking at the annual meeting in 1941 stated: “The oil business in the United States is destined to be taken over by the Govern- ment, or it is destined to be run by cooopera- tives. * * * you are the people who are taking the only step that makes it pos- sible to put petroleum business in the pri- vate possession of the people.” There is nothing modest about the CCA's 5-year plan. The goals include: Fifteen hundred member associations, serve ing half a million families in 3,000 communi- ties—doubling the present number of fam- ilies. At least 100 communities in which all farm and home supplies will be furnished by CCA. A weekly co-op newspaper with 300,000 circulation; regular radio broadcasts; a school of cooperative leadership, with bulld- ings and faculty; Job training for managers; summer camrs for youth, One hundred and four million dollar vol- ume of business—four times last year's $26,- 000,000, and $30,000,000 of capital from de- ferred-patronage dividends, patrons’ equity reserves, and sale of preferred stock. At least 70 percent of all goods handled to be produced or processed in CCA's own or jointly owned co-op plants—including tires, batteries, roofing, cement, and fertilizer. CCA's published financial statement showed net earnings for 1944-45 of $1,665,- 298.82 after deduction of $96,899.29 losses on cannery, lumber-mill, and pipe-line opera- tions. Refineries showed biggest profits— $1,124,726. Net worth amounted to $9,550,- 264.84. Total assets were listed as $16,453,- 161.21. No payment of Federal income tax is shown, though a taxpaying corporation that made $1,665,298 would be paying $632,000 at the present rate of 38 percent. Cooperatives have found that the greatest profits in the petroleum industry accrue from productive rather than distributive activities. Since their private competitors could not expand or establish reserves for future ex- pansion because of the high tax burden, they were able to purchase huge productive en- terprises and pay for them out of nontaxed profits from petroleum and other business activities in a relatively short time. Because dollars saved through tax exemp- tion represent much of the investment in new facilities of cooperative enterprise, 1t is reasonable to conclude that cooperative ownership is indirectly paid for by all tax- payers, and that the individual cooperative members who profit thereby are being un- duly enriched at the public's expense, An illustration of this effect is provided by the record of 14 major cooperatives, which had combined earnings of $10,383,177 dur- ing their fiscal year ending in 1942. They would have paid approximately 96,582,943 in Federal income and excess-profita tax if they
APPENDIX TO THE CONGRESSIONAL RECORD had been taxed at the average rate paid by private industry (63.4 percent). Instead, this and additional iunds, amounting to $7,285,073, were retained in the capital structure and, therefore, were available for expansion, The rest of the nontaxed net earnings, $3,098,104, was returned to the patrons in the form of cash dividends and stock. The superpetroleum cooperative was pre- ceded by large regional cooperative whole- sales, initially organized to supply petrole- um and other products to the local petrole- um associations. The wholesale associations enabled the local co-ops to capture the economies resulting from large-scale pur- Chases. At first these organizations were little more than brokerage agencies, but they were successful and svon extended their operations back to the sources of supply, 1. e., crude production and refinery opera- tions. The organization of cooperative wholesale associations followed very closely the growth of the retail associations. The first associa- tion was incorporated in Minnesota in 1926. It was the first co-op wholesale association in the United States organized primarily to engage in the distribution of petroleum products. The importance of the wholesale associa- tions is reflected in the dollar volume of sales figures compiled by the Farm Credit Administration for 17 major wholesale co- operatives during 1942. Total sales amount- ed to $287,960,907, and of this amount petro- leum products represented an aggregate of 047,966,314. The big move into the field of production (petroleum) developed simultaneously with the huge increase in corporate income and excess-profits taxes brought on by the war. While private business had to shelve its plans for expansion, co-ops were able to pyr- amid their capital structure by retaining their tax-free, war-inflated profits. Since Federal income taxcs take up to 80 percent of corporate income, it can readily be seen that tax free co-ops’ profits had in effect multiplied fivefold. This tremendous ad- vantage was further supplemented by the extension of easy Government credit and preferential treatment to the cooperative associations. The banks for the cooperatives, supervised by the Farm Credit Administration of the United States Department of Agriculture, ex- tend credit to the co-ops at 31, percent on loan to acquire facilities. These loans, by law, may be made in an amount up to 60 per- cent of the appraised value of the facilities required. As a result, the cooperatives in some instances have been able to finance the entire cost of their purchases by virtue of purchasing at a price decidedly lower than the appraised valuation. There is no disputing the fact that these huge productive co-op enterprises are being paid for out of profits which largely would be absorbed by Federal income and excess profits taxes were they privately owned. This means cooperative ownership is subsidized ‘and that cooperative enterprise is indirectly paid for by all taxpayers. The records bear this out. Fourteen major cooperative wholesalers, which distributed petroleum products or, in some cases, engaged in production and re- finery operation, earned $10,383,177 during their fiscal year of 1942. They were able by devious means to retain 7,285,073 or 70.2 per- cent of the tax-free profits in their capital structure. Since private business paid 63.4 percent of their profits in Federal income taxes in 1942, it readily can be seen that tax exemption is presently subsidizing coopera-~ tive expansion. The amount and distribution of the com- bined savings for the 14 associations shows: Cash patronage dividends, $2,636,085 or 25.4 percent; patronage dividends in capital stock and certificates of equity, $3,799,212 or 36.6 percent; retained in reserves, $3,485,861 or 83.6 percent; cash dividends on stock, $462,- 019 or 4.4 percent. The share capital of the 14 organizations in 1942 amounted to $26,347,100. This rep- resented an increase of 87,767,391 over the share capital of $18,579,709.for the preceding year. The increase in shure capital is almost entirely accounted for by the amount of profits retained. Profits retained amounted to $7,285,073, or $482,324 less than the in- crease in share capital. If the $482,324 repre- sents capital derived from the sale of stock on the open market or to the membership, then only about 6 percent of the capital in- crease came from sources other than profits, In practically all cases the capital of re- gional cooperative wholesalers has been built from earnings, rather than by additional in- vestment by member associations. What is the reason for the growth of local petroleum cooperatives? They began to appear in numbers in 1924, simultaneously with the widespread use of power-driven farm machinery. Prior to then farmers secured their supply of fuel exclu- sively from private companies. With the advent of widespread mechaniza- tion of the farm the cooperative principles which had proved successful in marketing the farmers’ produce were applied to the pur- chasing of gasoline, kerosene, lubricating oils, grease, and other related products. From the very first petroleum products were found to be especially adaptable to co- operative distribution. Such products could be distributed in bulk quantities and, there- fore, did not require expensive facilities for handling. Inventory problems were negli- gible. Like other cooperatives, the petro- leum associations also were immune from Federal income and excess-profits taxes. These factors combined enabled farmers to organize their cooperative associations with little initial capital and to finance them out of the profits (now labeled savings) of the organization. Many such associations thus paid for their capital structure within 1 or 2 years, and thereafter stimulated their sales volume by the payment of substantial amounts of patronage dividends in the form of cash. Many existing marketing and purchasing cooperatives then dealing in various kinds of commodities seized the opportunity to handle petroleum products as a side line. This was particularly true of the cooperative elevators and farm supply associations. In general, the petroleum cooperatives may be classed into two groups on the basis of their purchasing arrangement. The group handling the largest volume of products is that affiliated with cooperative wholesale or- ganizations. The other group relies on the major and independent oil companies for their supplies. The most recent available report from the United States Department of Labor shows 2,827 local cooperative associations in the United States engaged in the distribution of petroleum products. There were no associations listed for Flor- ida, Nevada, and Rhode Island. Although most of the associations handled all the ma- jor petroleum products, some engaged in the distribution of only one cr two items. Gaso- line was distributed by 2,026 co-ops. Motor oll was retailed by 2,248 associations and grease by 2,092 associations. By States and numbers: Alabama, 3; Alaska, 1; Arizona, 7; Arkansas, 13; Cali- fornia, 25; Colorado, 38; Connecticut, 14; Delaware, 1; District of Columbia, 1; Florida, 0; Georgia, 2; Idaho, 36; Dlinois, 100; Indiana, 92; Iowa, 181; Kansas, 195; Kentucky, 2; Louisiana, 1; Maine, 7; Maryland, 8; Massa- A623 chusetts, 27; Michigan, 99; Minnesota, 249; Mississippi, 2; Missour!, 83; Montana, 95; Ne- braska, 184; Nevada, 0; New Hampshire, 3; New Jersey, 23; New Mexico, 5; New York, 42; North Carolina, 7; North Dakota, 122; Ohio, 109; Oklahoma, 40; Oregon, 39; Pennsylvania, 54; Rhode Island, 0; South Carolina, 3; South Dakota, 76; Tennessee, 1; Texas, 66; Utah, 7; Vermont, 6; Virginia, 7; Washington, 76; West Virginia, 5; Wisconsin, 207; Wyoming, 13. Too large a segment of petroleum-indus- try executives have refused to become con- cerned over the competition offered by the co-ops. Their complacency to a large de- gree has been based on the false belief that the cooperatives would not be able to over- come the many practical difficulties that would develop from an expansion into the fields of production and refinery operation. Further, they have mistakenly assumed that the competitive importance of the co- operative in the retail fleld eventually would decline. These beliefs, unfortunately, were well expressed by Warren C. Platt, of Cleve- jJand, Ohio, president of the National Pe- troleum News, speaking before the annual meeting of the American Petroleum Insti- tute at Dallas, Tex., November 12, 1934. He said: “I do not mean to predict that the farm oi] co-ops will go out of business entirely but that they probably will decline greatly in competitive importance.” The fact that the local cooperatives since that time have continued to expand and began to exploit the urban market has ap- parently not resulted in any noticeable change in this attitude of lassitude. Today the co-ops have spread so far and so deeply into the fields of production and refining that they stand as the primary threat to private ownership in the ofl industry. The practical difficulties preventing coop- erative expansion, held insurmountable by the oil industry, were predicated on the assumptions that the co-ops would be un- able to obtain skilled and trained personnel; sufficient capital, cooperation, and patron- age; and adequate oil reserves, which they considered necessary to the cooperatives’ success. As a matter of fact, experience has shown that few of these factors have had any deterring effect upon the growth of the movement. The most important difficulty that has faced the co-ops in their expansion program has been the lack of competent management and personnel. But cooperatives have over- come this factor by the simple expedient of taking over the personne! of the refineries which they have purchased and paying wage rates comparable to those paid by private industry. If any incentive for cooperative executives is lacking because of low salaries, it is more than compensated by a fanatical zeal and interest in the movement and this characterizes most of its executives. One thing remains certain. Petroleum cooperatives will continue their expansion in the fields of crude production and refinery operation until they have suf- ficient capacity to service the demands of their consumer market. In the words of the co-op leaders, “coop- erative wholesales, being service organiza- tions, are seeking, through the purchase of additional refining facilities, to meet the refined fuel needs of their members 100 percent.” The cooperators declare that their con- sumer market ultimately will embrace the entire world market for petroleum products. The four-step program to cooperative dominance of the international business as well as petroleum world is based upon, (1) the establishment of local markets through the formation of local cooperative associa- tions, (2) the formation of regional whole- sale associations to capture the economies
A624 of large-scale purchasing, (8) the organiza- tion of national “super-cooperatives” to pro- duce and manufacture, and (4) the crea- tion of international cooperative cartels to dominate world markets and to obtain com- plete control of all sources of supply. The Consumers Cooperative Association is interested in more than petroleum. It has an electrically operated mill at Swisshome, Oreg., working at capacity to serve 240 co-op lumber yards, It produces a minimum of 25,000,000 feet of lumber a year. The CCA also can provide you with paint, building supplies, food products, a cannery, markets, wholesale groceries, feed mill, soy- bean mill, alfalfa dehydration plant, farm machinery, transports, automobile acces- sories, auditing service, insurance agency, and printing supplies, That’s all—for the time being. “The Consumers Cooperative Association is an ideal enshrined in the hearts of the people. It is not the externals that give the organization stature—not the oil wells, the Pipe lines, the refineries, the buildings of steel, brick, and mortar. “These are but outward tokens of inner strength. These men are but symbols of power; the power itself is in the people who nourish the cooperative idea with patronage, and who otherwise give devoted loyalty to it.” (From the CCA prospectus.) A Scalpel Is Needed, Not a Meat Ax EXTENSION OF REMARKS or HON. JOHN A. CARROLL OF COLORADO IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. CARROLL. Mr. Speaker, under unanimous consent to revise and extend my remarks, I insert in the Recorp an editorial which appeared in the Rocky Mountain News, Denver, Colo., on Feb- ruary 15, 1947. All Members of Congress and partic- ularly those majority party leaders who are advocating a $6,000,000,000 reduc- tion in the budget should read this edi- torial. The editorial policy of the Rocky Mountain News has been that of an in- dependent, although its position in the election of 1946 was strongly in favor of a Republican Congress. Here, then, is a friendly voice urging majority leaders to proceed with caution and to act with wisdom. RECKLESS ECONOMY TALK Congress had better heed the warnings of Secretaries Patterson and Forrestal and Gen- erals Eisenhower and MacArthur against pro- posed cuts in military appropriations. These men know what they're talking about when they say that such reductions as Republican leaders are advocating would invite disaster. We can understand the Republicans’ eager- ness to find some way of saving enough money to let them make good on their promises of lower taxes, And certainly there is room for some safe paring in the Army, Navy, and Air Force budgets submitted by President Truman. But that operation ought to be performed with a scalpel, not a meat ax. This is no time to risk crippling the services which still are our best insurance of national security and world peace. Congress has not yet done the careful work necessary to determine how far or in what respects military expenditures can be cut without danger. What the Republican lead- ers are proposing is only a guess. And con- gressional guessing on that subject is, itself, perilous. Coming on the eve of the meeting of the Council of Foreign Ministers in Moscow, it impairs our bargaining position. It gives other nations reason to hope or fear that America is about to dissipate the armed strength essential, under present conditions, to support a firm foreign policy. The American people want Congress to end waste and extravagance in every branch of the Government, including the Army and Navy. But we believe a vast majority would rather have no tax cut this year than see the military services weakened by a reckless and uninformed stab at economy. The Veteran’s Problem EXTENSION OF REMARKS oF HON. ANTONI N. SADLAK OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. SADLAK. Mr. Speaker, under leave to extend my remarks in the Rrc- orp, I include the following editorial which appeared in the Southington (Conn.) News on Saturday, February 15, 1947: THE VETERAN'S PROBLEM “Let’s get those veterans off the street. Stop them from sounding off on street cor- ners, loitering in front of drug stores, strut- ting around like heroes, Heroes were all right when the war was on. But the war's been over 18 months. Let's stop coddling those parasites and put ‘em to work.” So the argument runs. It comes out of the same mouth that spoke only yesterday of the ‘noble sacrifice” and “doing something for the boys who are doing so much for us.” It comes from the same mind that laid out elaborate schemes for understanding the boys and making it easier for them to read- Just when they came home. Well, most of the boys have been home now from a year to 18 months. Getting home was a great dream come true, a dream that seemed incredibly beautiful because of the nightmare that inspired it. Home, of course, never could be in reality the wonder- ful thing it seemed to be in a place 8,000 or 6,000 miles u.way from home. But the veteran could reasonably expect home to mean more than a noisy welcome evaporating into a cold silence that conveyed indifference if not hostility. Home ought to have meant at least an opportunity to work or get some schooling and to live in decent surroundings. The GI bill of rights was supposed to guar- antee those things. It didn’t. And the veteran is bitter and resentful. The civilian is puzzled and a little scared by the veteran's insistence that he be ac- cepted once more at home, not as a hero but as an equal participant in society. The gulf between veteran and civilian widens, causing one of the most dangerous situations in the Nation today. But the two groups cannot be brought together on a basis of real understanding until the civilian, who has the power to solve the problem, helps carry out the intent of the GI bill. The first need is a more liberal interpreta- tion of the loan provision. Few loans for APPENDIX TO THE CONGRESSIONAL RECORD homes and still fewer loans for business are being made under the GI bill. It is difficult for the veteran to understand why private lending agencies and the Veterans’ Admin- istration consider him a poor risk when the Nation staked its very existence on him during the war. It is even more difficult for the veteran to understand the prevailing concepts of secu- rity and interest in credit deals. The veteran ‘was willing to put up the most precious of all assets, life itself, without any guarantee that his family would be protected if every- thing had to be sacrificed. The veteran has his own idea of interest rates. If he went into service at 20 and came out at 24 without a scratch, he still gave up @ good years—or better than 16 percent of his life. The country owes him something for his time, time that ordinarily would have been spent in schooling or apprenticeship for a trade. The GI bill sets a maximum of $65 a month for the single veteran, 890 a month for the married veteran, as an allowance for school- ing. The allowance was fair when the bill became law but living costs have gone up since, and the allowance should go up ac- cordingly. The bill sets a maximum of $175 a month for the single veteran, $200 a month for the married veteran, who enters into on-the-job training. In view of increased living costs, this maximum should be raised. Veterans’ housing is an even more serious problem and should be tackled with all the resources private agencies and the State and Federal governments can muster. Men who sacrificed comfort for 3 or 4 years cannot be expected to give it up forever and to rely for shelter on callous landlords who are in the game for all the traffic will bear. A recent survey shows that in some sections of the country two of every five veterans share living quarters with others; 6.3 percent live in at- tics or basements and only 50 percent have a private bath or shower. The survey brings out that 87 percgnt of the veterans want to own their own homes. It 1s not unreasonable for the veteran to want more schooling or a job and 8 decent place to live. The veterans’ problem will dis- appear in no time when those fundamental needs are provided. Amendment of Civil Service Retirement Act EXTENSION OF REMARKS or HON. JOHN C. BUTLER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. BUTLER. Mr. Speaker, I havé introduced today a bill to amend the Civil Service Retirement Act approved May 29, 1930, as amended, which bill will credit all persons who have served at least 90 days and have been honorably discharged from the military and naval service in the Army, Navy, Marine Corps, or Coast Guard of the United States, with an additional 5 years toward retire- ment, upon payment of the amount of contributions that would have been re- quired of them had they remained under the provision of the Civil Service Act at the rate of pay received by them im- mediately prior to joining the service.
APPENDIX TO THE CONGRESSIONAL RECORD It is my sincere belief that the veterans are entitled to this consideration, for they served our country honorably when they were called upon and did a good job in winning the war. It is only proper that we should give them all the help we can in establishing them in civilian life and in planning for their future. I trust thts measure will receive the full attention of the committee. Memorandum on Puerto Rico EXTENSION OF REMARKS HON. KARL M. LeCOMPTE OF IOWA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. LECOMPTE. Mr. Speaker, the President of the Puerto Rican Senate, Hon. Luis Munoz-Marin, has sent me a very interesting and enlightening memo- randum on the economic and political realities in Puerto Rico. Because the contents of the memorandum are of im- portance, under unanimous consent to extend my remarks in the Recorp, I in- clude the statement of President Munoz- Marin: MEMORANDUM ON PuERTO Rico The over-all picture of realities in Puerto Rico is as follows: THE ECONOMIC PICTURE The island of Puerto Rico is approximately 95 by 35 miles, or about 3,400 square miles. It has now a population of 2,100,000 inhabi- tants, more than double what it had at the beginning of the century. The population is increasing even faster now than formerly due to the fact that we have made enough Progress to reduce the death rate from 30 to 13 per thousand, but not enough to reduce the birth rate which has continued through- out the century at around 40 per thousand. This large and increasing population has to live on what is mainly an agricultural econ- omy. In no place in the world can 630 per- sons per square mile subsist, except at very low levels, on an agricultural economy. It is for this basic reason that the Federal Gov- ernment has been called upon to give in- creasing aid to Puerto Rico. This aid should be continued and im- proved; but it should be increasingly guided by a policy of helping Puerto Ricans to help themselves rather than of sustaining them by relief, The present legislature of Puerto Rico, which was elected on the basis of universal suffrage by a two-to-one majority, is trying to deal with the economic problem of Puerto Rico along the following lines: Puerto Rico must increase its production, through im- proved agriculture, and, mainly, through in- dustrialization, fast enough to take up the chronic lag of unemployment; and still faster to keep up with the rapidly increasing pop- ulation; and still faster looking towards a time in which the fair-minded Federal aid provided shall cease to be essential to its sur- vival and civilization; and still faster to im- prove the standard of living of the common man to the point where, through educational and other factors, the birth rate begins to decrease. (In this connection it should be pointed out that the size of Puerto Rican families is smaller above the $800-a-year level of income than below that level. But 70 percent of Puerto Rican families are far below that level st/ll.) ~App. This difficult, but by no means impossible, economic objective is being pursued by the present government of Puerto Rico, not only by extending education and health services, but by taking the initiative, insofar as nec- essary under Puerto Rican conditions, in egricultural and industrial development. The Industrial Development Co., a public corporation, helps private investors to es- tablish new industries, or establishes them itself, as a guide, example, and stimulus to private investors. The Agricultural Devel- opment Co. develops new. crops as a guide, example, and stimulus to farmers in devel- oping a more diversified agriculture of high yield. The Development Bank, which has the approval of the private banks of the island—some of the managers of which serve on the Development Bank's board— has been established to make long-term in- vestment loans that the private banks of Puerto Rico do not extend. These institu- tions, it should be noted, have not been es- tablished because of an ubstract theory, but to meet the pressing specific needs of Puerto Rico. Private investment has been stimu- lated to go into new flelds by government pioneering, and in doing so has had the gov- ernment’s aid and support. It is along this line that we expect to ac- complish the hard task of developing our production to the point where 3,000,000 Puerto Ricans—the probable figure—can by 1960 support themselves without other aid than their own effort, without a lag of chronic unemployment and at a level, mod- est but sufficiently decent, to bring about a decrease in the birth rate. All necessary aid given the Puerto Ricans to attain this ob- jective is not only a matter of justice in ex- tending a helping hand to fellow citizens that are gallantly trying to work out a very tough problem, but it is alsu in the long run the only way of saving money by help- ing Puerto Rico to become self-supporting and to cope with its population problem. THE POLITICAL PICTURE Puerto Rico was a colony of Spain for 400 years. Then it came under the jurisdiction of the United States, as a result of the Span- ish-American War in 1898. The population is mainly of Spanish descent. According to the census of 1940, about 30 percent of the population was colored and 70 percent white. Toward the end of the Spanish re- gime Puerto Rico had had a brief experi- ence in self-government under a type of re- lationship to Spain similar to the relation- ship of Canada or Australia to Great Britain. Although the United States began its regime in Puerto Rico by cutting down Puerto Rico’s political liberties, living in as- sociation with democratic American institu- tions has given Puerto Ricans great expe- rience in the democratic way. The late Pres- ident Roosevelt recognized publicly several years ago that the Puerto Rican people were politically mature and ready for a full meas- ure of self-government. It is contrary to the whole American way of life that a community of American citizens should have less than complete local self- government. It is equally contrary to the world commitments of the United States Government that any politically able people anywhere should be kept in any form of political subjection. On the basis of these realities, opinion in Puerto Rico is divided among those who favor independence, in a spirit of friendship with the United States similar to that under which Philippine in- dependence has been established, those who favor statehood, and those who favor full local self-government based on rights and not on special favor. The Puerto Rican people are asking for a chance to vote freely on their own future in such a manner that they may be properly advised when they vote on what economic relationship they can expect with the United A625 States, with a view to making themselves fully self-supporting, under the different forms of political status upon which they may be consulted in a referendum. (It should be borne in mind that the Puerto Rican voters could not make an intelligent and responsible reply to such consultation without being adequately apprised of the economics involved in each political status, as the mere name of a political status does not convey its economic corollaries.) One thing, however, seems to be beyond question, either by responsible American citizens of the continent or by responsible American citizens of Puerto Rico, and that is that no community, and especially no American com- munity, should be longer deprived of full local self-government, Rapid action on the Puerto Rican political problem would not only discourage extreme views from gaining a foothold in Puerto Rico but would also clear the decks completely for the wise peace-seeking bipartisan policy of the United States Government with rela- tion to peoples still politically dependent in all areas of the world. Address of Hon. Clare Boothe Luce EXTENSION OF REMARKS OF HON. JOHN DAVIS LODGE OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES Wednesday, February 19, 1947 Mr. LODGE. Mr. Speaker, under leave to extend my remarks in the REc- orD, I include the following address by Hon. Clare Boothe Luce, February 15, 1947, Lincoln Day dinner, Winston- Salem, N. C.: Thank you, people of Winston-Salem and Republicans of North Carolina. Thank you very much. In asKing me to speak tonight you have paid me a singular honor. No; a double honor. No; a triple honor. First, I am honored to be here as a private citizen. You are very generous with the party’s time. Iam Just another constituent. A mere taxpayer. If the word “mere” can be used about anything the size of present- day taxes. Secondly, I am honored to stand on a plat- form with our new Speaker of the House, Mr. JosePH Martin. The papers say that Joe's force and effectivencss in that high office are astounding Washington. They come as no surprise to those Republican Representa- tives who worked with him in the past. Jor Martin has had plenty of schooling in politi- cal adversity. That's a mild way to describe 16 years of New Dealism. His keen qualities of leadership were forged on the anvil of opposition through four terms of Democratic administration and maladministration. In the crucial years ahead, the whole Nation will come to know the Speaker's character as we knew it when he was our minority leader. He is candid, patient, flexible, de- termined, and liberal in his judgments. Now that our party is in power, some Republicans are bound to try to turn the clock back to 1932. Jox MARTIN won't try that. Few men are so well aware that there is no going back. His motto ts: Let’s turn neither to the right nor the left. Let us go forward. But the third reason why I am so greatly honored is that you have picked me to speak on this occasion, so dear to the hearts of all Americans, but dearest of all to the hearts of Republicans—the birthday of Abraham Lincoln.
A626 Lincoln's political tradition is our unique party inheritance. But a political inherit- ance, like a material one, must be constantly and prudently reinvested in fruitful political projects if it is not to diminish rapidly. It is not enough for us Republicans to talk Lincoln; we must act Lincoln, and do Lin- coln, if we are not to waste our inheritance. We must go forward in Lincoln's tradition. We must, as the party coming into power, be reborn in the spirit of Lincoln. Nothing less will safeguard our party fortunes. Any- thing less will endanger the peace and pros- perity of America. But what is the Lincoln tradition? What does it mean, not only to Americans, but to all peoples? When we know that, we will know the secret of his deathless leadership. What is the spirit of Lincoln which+must infuse our party if it is to reach the heights of leadership for which our age is crying? When we know that we will know the secret of how we Republicans should govern the Nation. To begin with, Abraham Lincoln's spirit was fundamentally religious. Lincoln be- Heved, with a passion that resisted and over- came all political temptations, in the brother- hood of man under the fatherhood of God. All the rest of his political beliefs derived from this rocklike credo. Lincoln never talked about Negro rights against white rights, or southern rights against northern rights, or the rights of the property holder against those of the propertyless, or even the rights of one nation against the rights of another. Lincoln knew that there are no rights but human rights, and that all human rights stem from man’s membership in th~ whole human family, each member of which 1s a child of God. Lincoln held that every man, regard- less of creed, color, race, nationality, or con- dition of birth, has the divine right to refuse to subject himself to his equal or his in- ferior. He has a sovereign personality, indi- vidual dignity, and personal responsibility in society. Because Lincoln believed in man as a Child of God, he never ran into any trouble defining what he meant by democ- racy. “As I would not be a slave, so I would not be master. This,” said Lincoln, “expresses my idea of democracy. Whatever differs from this, to the extent of the difference, is no democracy.” Lincoln realized that the genius, the strength, and the glory of America lay in preserving, perfecting, and projecting de- mocracy, without masters or slaves in it. Lincoln loved peace. But he was not a pacifist. He knew that all good government must strive to keep peace between men and nations. Peace is the bedrock policy of na- tional prosperity. But he also knew that war is better than any peace which surren- ders our human rights to the slave master, the tyrant, and the dictator. He tried, with heartbreaking patience, to dissuade the slave masters from their trade with cold logic, with sound reason. When democratic arguments failed, Lincoln did not draw back from using force. He cut the hideous institution of slav- ery out of our political system by violence, The man who loved his fellow Americans more than any other American who ever lived laid a sword between them. But the sword was the sword of justice, wielded in the name of every man’s freedom, And Lincoln saw as clearly as a prophet that for Americans to betray freedom at home would mean in the end the betrayal of freedom throughout the whole world. Lincoln was not an isolationist. He knew the power of ideas—or what we call today ideologies. He saw that ideas pack more force than money or cannons. He knew that ideas can invade and conquer nations, no matter how wide the oceans or high the mountains which protect them, It is fashionable for modern politicians to talk about “one world.” To hear them you would think that “one world” had come in- to being when we invented the radio and the airplane. Lincoln always knew that this was “one world,” because we @re all members of one human society. He knew that the human heart at all times, and ev- erywhere, desires freedom. And that free- men most everywhere make common cause with one another, in self-defense. “In giving freedom to the slaves,” he said, “we assure freedom to the free.” Lincoln had never heard about a League of Nations, or a United Nations’ organization. But reason told him that the survival of freedom in America rested on our staying in league with the lovers of freedom throughout the world. Lincoln was very sensitive to free world opinion, He had a sense of responsibility and a wish to join hands with free peoples of Europe which would put to shame some of our modern so-called liberals. Listen to these words spoken at Peoria, Ill., 5 years before the outbreak of the war. He said: “Already the liberal party throughout the world expresses the apprehension that the one retrograde institution (slavery) in America is undermining the principles of progress, and fatally violating the noblest political system the world ever saw! This is not the taunt of enemies, but the warning of friends. * * * In our greedy chase to make profit of the Negro, let us beware lest we ‘cancel and tear in pieces’ even the white man’s charter of freedom. * * * Let North and South—let all Americans—let all lovers of Mberty everywhere join in the great and good work. If we do this we shall not only have saved the Union, but millions of free happy people, the world over, shall rise up and call us blessed.” Twice since 1861 this Nation made the Lincolnian decision. In 1918 and again in 1941, we decided that it was nobler to suffer wounds than to let our brothers wear chains. We decided that in freeing the peoples en- slaved by the German and Japanese dic- tators, we assured freedom to all free gov- ernments. And once again, with victory there came the hope of a rebirth of world freedom. But today, over wide areas of the world, freedom is still no more than a hope. No nation, Lincoln said in the days of flintlock and cannon, can long endure half slave and half free. The world has grown small. The radio, the telephone, the air- plane, and other rapid means of communica- tion have made it smaller than Lincoln’s America. And yet in this shrunken world the issue between slavery and freedom is not yet settled. It is more acute and terrible than it has ever been since the dawn of man’s his- tory. Never before has our democratic con- cept of the individual dignity, worth, and re- sponsibility borne such vicious attack. Never before have whole nations numbering mil- lions upon millions of people been forced or persuaded to wear the fetters of political slavery. A flerce ideological conflict rages today in a world half free and half slave. Must it be resolved, as it had to be in Lin- coln’s day, by war? O God, forbid! The weapons men would use in such a war would be the weapons of mass extermination, An atomic superblitz could turn our land from coast to coast into a shambles. Germ war- fare could blight our widest harvest fields and glut our hospitals with stricken women and children. This can happen here in the next 20 years. But it can happen only on one condition— that we let the forces of tyranny that are at work so hard in Europe and Asia overtake the valiant defenses of freemen there. There is, of course, one other thing America could do instead of helping the democrats of Europe and Asia. We could scrap the firm Vandenberg-Byrnes policy. We could ap- APPENDIX TO THE CONGRESSIONAL RECORD pease totalitarianism abroad and we could encourage it at home. We could begin to be- have like a bunch of frightened colonials. Now, you might sell that idea to a small group of New Deal isolationists, say, on Henry Wallace’s birthday. But you can’t sell it to the American people—not on Abraham Lin- coln’s birthday. The supreme challenge which faces a Re- publican Party coming into power is twofold. First, we must seek quickly to widen the areas of freedom abroad by every means at hand to a rich, powerful, peace-loving coun- try. We are the only strong arsenal of de- mocracy left on five continents. We are to- day, as in Lincoin’s time, the last best hope of freemen on earth. Second, we must look to our own defenses. The social revolution in Europe has gathered terrible momentum. In spite of all our peaceful efforts, these areas of freedom abroad may continue to shrink. If we lose our allies among the freemen of other lands, war will surely come to meet us. We are our own last best hope, too. So, let us Republicans support to the hilt all economic and diplomatic measures for the relief, rehabilitation, and comfort of free European and Asiatic governments. Let us use, for all it is worth, the machinery of UN to settle international frictions. Let us give UN every chance to bring about world dis- armament and atomic control. Meanwhile, let’s keep the bomb. For one reason only: we are the least likely nation in the world to use it unexpectedly. Let us be generous and firm in building our foreign propaganda and intelligence programs, Let us keep our armed forces strong. All these things will cost money. Plenty. Taxes are hard to bear. But bombs or chains would be harder, No one who understands the basic con- cepts of Lincoln’s democracy doubts where he would stand today on the Russian ques- tion. He would try to be friends with the Russian people. And he wouldn't be at all afraid of Russia. He would note, as any sane man must, America’s tremendous physical and material power in the world. Physically the Soviet Union is a welterweight compared with Uncle Sam. Unless Russia could get to- gether with many other nations she could never deliver a knock-out blow to us. Alone she couldn't even compete with us in world markets, no less throttle our free world trade, But Lincoln would clearly see that many na- tions might soon be gotten together under the leadership of Soviet Russia. His gener- ous heart and his keen mind would tell Lin- coln at once that the starving and despair- ful peoples of the world—and our own une derprivileged classes at home—will surely turn to communism and, therefore, toward Russia, if no aid comes to them from those who rule the democracies. At home or abroad, a man can’t eat our Bill of Rights. He can’t pay the rent with our Constitution or the Magna Carta. He can't build a house for his loved ones out of a ballot box, however free or secret. And if he is a colored man, or a colonial subject, he can't “plant no taters” or grow any rice in the Atlantic Charter. Certainly not in what is left of it. Aman must have not only liberty, he must have bread. The goal of Lincolnian democ- racy was to secure to every citizen the most of both. That is the fullness of freedom. The proper goal of man is to make the most he can out of himself, Or, to put it another way, his purpose in living is to per- fect his own nature. But a man cannot per- fect his will without political liberty. He cannot perfect his mind without education. He cannot perfect his body without proper food, clothes, exercise, rest, and medical care. He cannot perfect his whole personality with- out a certain amount of private property which he can do with as he wants, He cer-
APPENDIX TO THE CONGRESSIONAL RECORD tainly cannot perfect his heart and soul with- out free access to the truths about God. He cannot, in short, perfect himself as a demo- cratic citizen without the basic guaranties of political, economical, physical, and spiritual liberty. To deny this fullness of freedom to men is to encourage imperfect citizens who will be most apt and eager to embrace communism, No one can dispute that we do, in this coun- try, for example, deny the fullness of free- dom to our colored citizens and other minor- ity or underprivileged groups. Economic monopolists and political monopolists, the business bosses, and the labor bullies, are still hard at work in this country to deny it to our workingmen. And it is precisely among those who are denied the fullness of freedom that commu- nism takes root and flourishes. If commu- nism can succeed on the rich soil of America, how much more must it succeed in devastated Europe? Lincoln would not blame Soviet Russia for her successes in Europe or Amer- ica. He would blame the failure of demo- crats to be democratic. Yes; Abe Lincoln would be the first to tell his great and beloved party that the best way to destroy communism at home and abroad is to practice democracy here and to bring aid to those who would practice it abroad. One susvects that if Abe were politicking for high office in the year of our Lord 1947, he would make quite a point of the fact that America, 2 years after its greatest mili- tary victory, is still shaking at its knees about its own, and the world's, future. He would demand to know why this Nation, which today stands at the apex of its world material power, has lost so much moral prestige throughout the world, and at home so much confidence in its own system. I ex- pect he'd lay a lot of the blame for that on some of the corrupt or addle-brained New Deal foreign and domestic politics of the past 14 years. And he would use pretty salty language. He'd have to, to get elected. Anyone who thinks a candidate ever has, or ever can conduct, a simon-pure, nonpar- tisan campaign is wallowing in sheer sen- timentalism, or indulging in simon-pure partisanship. But once Abe won Office, we feel that he would say again, as he did during the Civil War: “TI shall do nothing in malice. What I deal with is too vast for malicious deal- ing.” In this spirit, Republicans who are coming into power today will do well to forget the New Deal past, and past masters. With mal- ice toward none and charity toward all, let us get on with our own job. Our job is to restore our badly damaged prosperity at home and prestige abroad. Said Lincoln: “We can succeed only by concert. It is not, can any of us imagine better? but can we all do better?” We Republicans can. And we must. And we will. . And now one last word about Abe. As we have noted, Lincoln did not get his ideas concerning the rights of man by consulting any Gallup poll. He tells us himself that he got them on his knees. He knew that a man who does not fall on his knees before his Creator is often driven to them by a dictator. Said Chauncey Depew on an occasion much like this: “Lincoln’s supreme reliance Was on prayer. He was one of the very few gifted souls in the story of mankind who have had their confidence in God rewarded by revelations from God.” If Lincoln were President today, maybe the first thing he would do would be to re- issue a very short proclamation he made on the 30th day of March 1863, at the city of Washington. Let us read it in closing. It contains the whole answer to why the world is in its present melancholy mess, And it reveals the only way we may all ex- pect to get out of it. “BY THE PRESIDENT OF THE UNITED STATES OF AMERICA—A PROCLAMATION “Whereas it is the duty of nations as well as of men to owe their dependence upon the overruling power of God, to confess their sins and transgressions in humble sorrow, yet with assured hope that genuine re- pentance will lead to mercy and pardon, and to recognize the sublime truth, announced in the Holy Scriptures and proven by all history, that those nations only are blessed whose God is the Lord; and, insomuch as we know that by His divine law nations, like individuals, are subjected to punishments and chastisements * * * may we not justly fear that the awful calamity of * * * war * * * may be but a pun- ishment inflicted upon us for our presump- tuous sins, to the needful end of our na- tional reformation as a whole people? We have been the recipients of the choicest bounties of heaven; we have been preserved these many years in peace and prosperity; we have grown in numbers, wealth, and power as no other nation ‘has ever grown. But we have forgotten God. * * * In- toxicated with unbroken success, we have be- come too self-sufficient to feel the necessity of redeeming and preserving grace, too proud to pray to the God that made us. “It behooves us then to humble ourselves before the offended Power, to confess our na- tional sins, and to pray for clemency and forgiveness. * * * “All this being done in sincerity and truth, let us then rest humbly in the hope author- ized by the divine teachings that the united cry of the Nation will be heard on high and answered with blessings, no less than the pardon of our national sins and the restora- tion of our * * * country to its former happy condition of unity and peace. “In witness whereof I have hereunto set my hand and caused the seal of the United States to be affixed. “ABRAHAM LINCOLN.” Veterans’ Housing EXTENSION OF REMARKS HON. HELEN GAHAGAN DOUGLAS OF C.LIFORNIA IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mrs. DOUGLAS. Mr. Speaker, our veterans, with the cooperation of the American people and their Government, were able to fight through from Guadal- canal to Tokyo and from north Africa to Berlin, but now, day by day, they are being pinned down, disheartened, and, in too many instances, defeated by the bit- ter home-front battle for a decent place for their wives and children to live in. Housing is our No. 1 problem. And, within that problem, veterans’ housing is No. 1-AAA. These veterans fell behind in the com- petition for what housing there is. That was not their fault. They were absent on other business, the business of saving our freedom. Now that they are back from the fox- holes, the real-estate lobby offers them hand-me-down houses—maybe, if, and when high-priced houses are built for those who can afford to pay. A627 Is this keeping faith with the veter- ans? I say it is not. I say it is an at- tempt at betrayal that must not succeed. We have a compact with the veterans that they shall have decent housing, and quickly. They should have it as part of the comprehensive Wagner - Taft - Ellender housing bill. Every day's delay on that bill spells tragedy for thousands of low- income families, veterans, and others. As part of that program, I have proposed, in H. R. 1750, a $1,000,000,000 veterans’ housing program to provide low-cost de- cent rental housing for veterans, $200,- 000,000 to supplement rents of not more than $50 a month, $800,000,000 in loans to local housing agencies when private building cannot meet the need for such housing. Mr. Speaker, I propose to bring to the attention of the House evidence of the need for immediate action to meet the veterans’ housing needs. Today, under unanimous consent, I include in the Rrc- orp an article from the New York Herald Tribune showing the dire need of veterans in that city, a need that is matched in thousands of communities throughout the Nation. Republican Members will note that Governor Dewey is credited in the article with a State veterans’ housing program that is supplying about $2,150,000 for New York City. This is fine, and shows that one Republican leader has not for- gotten the veterans’ housing needs. But it is a drop in the bucket compared to the needs. It will provide only about 3,900 tem- porary apartments and 425 dormitory quarters for veterans, to meet a shortage estimated by Mayor O'Dwyer of 150,000 housing units, nearly all required by vet- erans and their families. The article referred to follows: LETTERS OF HOMELESS VETERANS SHOW NEED FOR HOUSING AT ONCE— DESCRIBE PLIGHT AS DESPERATE AND UNENDURABLE, AND STRAIN ON FAMILY TIES REVEALS LACK OF PRIVACY, QUAR- RELS, IN-LAW INTERFERENCE (By Helen Straus) Renewed hope and encouragement were offered to homeless ex-servicemen and their families, who describe their plight as “des- perate” and “unendurable,” with the an- nouncement last week by Governor Dewey of & $2,150,000 program for veterans’ housing in New York City. The morale-building news comes at a time when 300 applications a week from city vet- erans are still pouring into the offices of Commissioner Herman T. Stichman, of the New York State Division of Housing, 270 Broadway. Interviewed at her office there, Mrs. Helen Tiffany, supervisor of applications, said that her 14 case workers and assistants who work with the registrants were only too aware of the fact that the problem of housing went beyond mere shelter. “The strains on marital and family ties are revealed again and again in letters,” Mrs. Tiffany said. “ ‘Lack of privacy,’ ‘unsanitary conditions,’ ‘constant quarreling,’ ‘in-law in- terference,’ ‘disruptive influences,’ ‘spoiling our children’ are phrases which appear over and over.” Mrs. Tiffany termed “typical” a letter which lay on the top of the day’s mail on her desk. It read: “I am a veteran of the United States Marines, My wife and I live in a furnished
A628 room. My wife gave birth to a son on Jan- uary 8. We are not allowed to have the baby in my room. No facilities for the baby. It is against the law. Boarders to the right and left of me. Fortunately by the grace of God I found a very great person to take care of our baby. She only can take care of our son until March 1. After that God only knows what's to become of him.” From her files Mrs. Tiffany pulled at ran- dom other letters which she considered repre- sentative of the 50,000 applications received during the last 3 years. One wife described her despair in a few words. “Can’t you please do something for me, as I am at a point where I am actually desperate and sick of conditions here. As you can see from my husband's application, we are not staying together due to the shortage of space. My children keep getting sick con- stantly, due to the closeness and lack of space.” “We are eight people living in one small, crowded four-room apartment,” an ex-Marine wrote. “There are two other veterans in the family besides myself. One brother-in-law with a service disability is nervous, due to his ailment, and ill both in mind and spirits. My mother-in-law has a heart ailment and her condition has been seriously aggravated due to worry and distraction over our affairs. My father-in-law is partially paralyzed. “My wife and I are expecting a child of our own in approximately 3 months.” * * *¢ One mother, deeply concerned about her daughter's marriage, sent in a letter which said in part: “I am not a healthy woman, and I have a heart condition. At the present time my home 1s not really only overcrowded, but there is never a peaceful moment. My son-in-law and I never seem to agree, and we always have a difference of opinion on even the slightest matter. Because of the above circumstances, I feel that my daughter's happiness is not complete.” Attached to this letter was a physician’s report verifying the fact that the mother was suffering from a heart condition. Commissioner Stichman, who is keenly aware of the human relations problems in- volved in housing and the urgency of the individual's plea, said: “The families we are taking care of include cases where parents were forced to live separately from their chil- dren and husbands apart from their wives because of the lack of housing. We have also provided for hundreds who lived under unsanitary conditions.” The Closed Shop Is Slavery EXTENSION OF REMARKS HON. THOMAS G. ABERNETHY OF MISSISSIPPI IN THE HOUSE OF PEPRESENTATIVES Thursday, February 20, 1947 Mr. ABERNETHY. Mr. Speaker, un- der leave to extend my remarks in the Recorp, I include the following article by Thurman Sensing, director of re- search, Southern States Industrial Council, from the December 1945 issue of the Manufacturers Record: THE CLOSED SHOP I8 BLAVERY (By Thurman Sensing, director of research, Southern States Industrial Council! ) The people of the South are familiar with slavery. They suffered defeat in a war fought some 80 years ago over this question. That slavery was open and aboveboard. It was known for what it was—the ownership by purchase of members of a backward race brought from Africa. It was slavery that was doomed to eventual condemnation by all right-thinking persons and it was tragio that it had to be settled by force. There are also other forms of slavery. Anything that denies a man his individual freedom, his right to act of his own free will and accord, his right to plan his own career, and provide for the welfare—present and future—of himself and his family, is a form of slavery. Such slavery is not so readily apparent as outright ownership, but it is, nevertheless, just as real and even more dangerous. Just such a form of insidious slavery has sprung up in this country—it is known as the closed shop. When this Nation was established some 150 years ago, it was recognized by its found- ers that every individual in it had certain inalienable rights. No condition was at- tached to these rights, for when conditions are attached to them, then they no longer exist. These rights are violated by the closed shop. When the individual is forced by labor bosses to pay union dues before he can secure a job with which to make a livelihood for himself and his family, then he no longer has the individual freedom guaranteed to him under the American Constitution. He is in effect paying taxes which he had no voice in levying—the very thing for which the Colonies fought for their independence from England when this Nation was founded. The closed shop is even more dangerous to the worker than to the employer. It is a form of slavery more insidious but just as real as outright slavery by ownership. If freedom in a democratic country means any- thing, it means that a man has the freedom to join a union if he so desires, but it also means that he cannot be forced to join & union before he can get a Job and make @ living for himself and his family. Freedom of contract or freedom of action is a necessary part of the individual freedom upon which this Government of ours is based. Ours is a Government that belongs to the people and accordingly is supposed to be conducted in accordance with the wishes of the majority of the people. If the majority of the people, therefore, have a chance to voice their opinion and vote for such things as the closed shop rather than the open shop or centralized planning rather than local con- trol or bureaucratic government by decree rather than legislative government by law, then that is the kind of government we would have. Such things, however, are contrary to all principles of freedom for which man has striven throughout history, and certainly they are repugnant to the American people as a whole. Even if the majority of the people voted in favor of these things, it should be remembered that we would then no longer be living under the constitutional democracy which our forefathers founded for us. The founders of this Government realized that man has some inalienable rights which even a majority vote should not take away from him. It is not to be believed that the majority of the American people would ever vote their approval of such prac- tices. We may be sure the people of the South do not believe in them. Why, then, should small organized minority groups, tak- ing advantage of particular situations, be allowed to force their will on the free indi- vidual citizen of America? The slavery produced by the closed shop is a type to which no man who believes in free democratic government can submit. If the worker can have his rights taken away from him in this manner by labor bosses with the sanction of bureaucratic government, then he had just as well live under a dicta- torship or a communistic form of govern- ment, neither of which does more than deny him the same rights. The American people cannot submit to the closed shop and have their country remain America as they have known it, APPENDIX TO THE CONGRESSIONAL RECORD Establishing Ceiling for Expenditures for Fiscal Year 1948 EXTENSION OF REMARKS HON. CHARLES W. VURSELL OFr ILLINOI’ IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. VURSELL. Mr. Speaker, much has been said today as to whether we can or cannot safely set a ceiling on Federal expenditures for the coming year, reducing the President's Budget by $6,000,000,000, which would give much needed relief to the taxpayers, balance the Budget, and have enough left to make a substantial payment of a few billion dollars on the national debt. On the first vote today on the rule, I should like to point out that practically every speech and every vote in opposi- tion to this reduction of expense came from the Democratic Members. They argued that the President’s Budget of $37,500,000,000 cannot be substantially reduced. They talked for economy and the reduction of governmental expenses when they were candidates in Novem- ber. They are now talking and voting against economy and the reduction of governmental expenses. They still be- lieve in the philosophy of spending which they have followed for the past 14 years. They want to continue it. Their waste and extravagance of the taxpayers’ money was so flagrant that the taxpayers finally caught up with them last November. The people, the taxpayers, revolted against their policies and elected a Republican Congress and it is now our duty to follow the wishes of the people, clean up the mess, and bring about economy in Government through the reduction of governmental expenses. The Republicans during the campaign told the people they would try to do this. They are today keeping that pledge. The Republicans, on the first test to- day voted solidly to adopt the rule mak- ing it possible for us to vote a slash of $6,000,000,000 in governmental expense. I predict when the roll is called later to- day, when a record vote is taken, that every Republican, without the loss of a single Member, will vote to slash this Federal Budget by $6,000,000,000. We today, by so voting, will send a message to the people of the United States that we are keeping our word given to them last November. Mr. Speaker, we propose throughout this session to keep up a continuous fight to reduce governmental expense. We propose to take less money out of the pockets of the laboring men, the farmers, and the businessmen through taxes. We cannot do this unless we cut governmental expense. In fact, we pro- pose to make our word good which was given to the American people last Novem- er, They cry out that we will endanger national defense in making such drastic cuts. The Republican Members of the House are just as wise and just as patri- otic as the Democratic Members who
APPENDIX TO THE CONGRESSIONAL RECORD make this charge. national defense. The administration leaders and their sympathizers have thrown up every pos- sible smoke screen to deceive the people as to our good intentions, the whole pur- pose being to exert such pressure on the Members of Congress as will permit them to destroy our efforts for economy. They will not succeed. We are determined to do our duty and are unafraid of the con- sequences. And, may I repeat, we are just as deep- ly interested in maintaining the proper national defense as are any other group of people in America. We will not en- danger national defense but we will most likely reduce the appropriations request- ed in the Budget for the Army and Navy. But we will make those reductions where there is reckless waste. There is now employed by the Army and Navy almost a million civilian employees. That num- ber is entirely too much during peace- time. There have been waste and extrav- agance in the Army and Navy through- out the years. We propose to stop that waste and extravagance, which is unnec- essary in keeping a sufficient military force ready to defend this Nation. Mr. Speaker, the millions of people who demanded economy by their vote last November represent a majority of the people of this Nation who, in fact, are the Government. They have cried out for relief and continue to do so. Their voices are being heard and answered to- day by the Republican Members of Con- gress, who will vote uanimously on this next roll call to give them the relief they seek through a reduction of govern- mental expense, We will not endanger St. Lawrence Seaway EXTENSION OF REMARKS HON. CLARENCE E. KILBURN OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. KILBURN. Mr. Speaker, under leave to extend my remarks in the Rrc- orp, I include the following editorial en- titled “Use St. Lawrence Power, Cut Last Barrier to Sea,” published in the Malone Evening Telegram of February 17, 1947: USE BT. LAWRENCE POWER, CUT LAST BARRIER TO BEA Britain's severe coal crisis reminds us that the United States is not immune from serious stoppages in supply of this major fuel. Last year nearly 2 months’ production was lost. And Wage adjustments sufficient to satisfy John L. Lewis imply continued rise in the price of coal. This makes early development of hydro- electric power from the St. Lawrence increas- ingly desirable. ‘When such development comes the State of New York will get the power. The origi- nal agreement with the Federal Govern- ment contemplated a charge-back of about $90,000,000 to this State for cost of dams and equipment capable of furnishing 1,100,- 000 horsepower and turning it into electrical energy. That was cheap power then. It will still be cheap power, even if the cost to the State is increased somewhat. For any increase will be less, from the power-production viewpoint, than the increase in cost of coal since the original estimate was made. Also to be considered is development of industries which depend upon low-cost elec- tricity, such as aluminum plants, certain types of chemical plants, etc. Why should New York lose out to Western States when a large potential source of cheap power exists on its northern border? That New York's taxpayers finance 15 per. cent of Federal outlay for these western proj- ects gives added point to the query. New York’s Governors, from Al Smith to Mr. Dewey, have consistently backed the St. Lawrence project. Unfortunately the same cannot be said for our representatives in the United States Senate. It is to be hoped Senator Ivxs will take a different position from hig predecessor, Mr. Mead. Some persons distrust the St. Lawrence project because it involves another country. But that country is our good neighbor, Can- ada. Canada sells us a lot of goods, mainly raw materials which we need. But it buys even more from us. Under the agreement, Canada will pay for all development wholly within her territory. She has already built an essential seaway link, the new Welland Canal, with a 27-foot depth. Altogether Canada would pay almost as much as the United States, though her trade on the Great Lakes and the St. Lawrence sea- way can be only a fraction of ours. What about the seaway aspect of the project? The first thing to note is that what is planned is simply a last but vital link. Enormous traffic has developed on the Great Lakes, with continual improvement of con- necting channels and the St. Mary’s locks. Canada has steadily improved the chan- nel from Montreal to deep water on the St. Lawrence, which treaties dating as far back as 1876 throw open to United States shipping. The last barrier between the Great Lakes and the Atlantic should be removed, along with development of St. Lawrence power. Establishing a Ceiling for Expenditures for Fiscal Year 1948 EXTENSION OF REMARKS HON. KENNETH B. KEATING OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. KEATING. Mr. Speaker, it is not easy to vote to cut a budget or to save money. There is nothing romantic or inspiring about it. The pleasant course would be to yield to the blandishments and, in most cases, the vigorous and sin- cere arguments of the various pressure groups who have been pouring in on all of us since the 3d day of January, in person, by telegram, and by letter. But we owe it to our party, to our country, to the present generation, and those to come to stand firm. I am con- vinced that the great inarticulate body of Americans expects this Congress— indeed, demands that this Congress re- duce drastically the expenses of Gov- ernment, balance the budget, provide for a payment on the huge national debt, A629 and give relief to the harassed taxpayer, who is painfully reminded every day he draws his pay of the burdensome, yes, and, if we fail to act, the mounting cost of running the Government. I yield second place to none in my de- sire and insistence that we maintain a strong Army and Navy, capable at all times of adequately defending this great country. Before taking a final position in this matter, I sought out, and received, as- surances from those of my colleagues who have been studying this problem and living with it day in and day out since the middle of last November that a favorable vote on this bill will not mean in the slightest degree an impairment of our national security. Many of us here in this body, and cer- tainly most of the American people, simply have no idea to what extent some of our colleagues here have burned the midnight oil, thumbed over and over the pages of this Budget, which is the size of the New York City telephone book, and interviewed hundreds of Government representatives in all departments, be- fore arriving at the recommendation they have made to us. They are con- vinced that some reductions in the Army and Navy budgets can be made without imperiling the safety of our country. They do not express a view, nor will they do so until more detailed studies have been made of the budgets of all] the Gov- ernment departments, as to how much of a cut can and should be made. Wheth- er the Army or Navy budget can, and should be, cut 1, 5, 10, or 20 percent, or the State Department, or Interior De- partment, or any other department, 1, 5, 10, or 20 percent, or more, is a matter which will remain to be decided after ex- tensive investigation and hearings, and reported to the House for consideration from time to time in detailed appropria- tion bills. . The Legislative Reorganization Act of 1946 sets a deadline of February 15 as the time when the report of the Joint Sen- ate and House Budget Committee shall file its report of the estimated over-all Federal receipts and expenditures for the next fiscal year and its recommendation as to the maximum amount to be appro- priated for expenditures. This figure of $31,500,000,000 contained in the concur- rent resolution now before us for con- sideration is a goal, a target—a target, however, which I am satisfied can, will, and must be achieved. That is not to say, however, if detailed studies of the needs for our national defense should later satisfy us that either this goal must be sacrificed or our Nation imperiled, that our hands are tied. What we do to- day, if we become convinced we have act- ed unwisely, we can later undo, if a great national emergency confronts us. But let us take this step today, a step which I am sincerely convinced we will not have to retrace. Let us show the American people today that we meant what we said when we told them that we would bal- ance the Budget for the first time in over 15 years, start in paying our debts, and at long last reducing rather than con- tinually increasing the amount which al- most every family in this land is forced,
A630 through taxation, direct and indirect, to contribute to the expense of running our country. Our people in our districts did not send us down here to be good fellows or to be prodigal with the public purse, which must be filled only by the labor and sweat of our own constituents. They sent us here to be firm and resolute; to reverse the upward swing of governmental spending; to help build a strong America which can assume her proper role in the building of a strong world. We face to- day the acid test. Let us neither waver nor flinch. Our mandate is clear. Our duty is clear. Our country waits expect- antly. Our responsibility is great. Our opportunity is challenging. With cour- age and with firm resolve, let us face it. A United Nations Government Suggestion EXTENSION OF REMARKS HON. RAYMOND S. SPRINGER OF INDIANA IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. SPRINGER. Mr. Speaker, in the village of New Palestine, Ind., which is located in the congressional district which I have the honor to represent in the Congress, Mr. T. M. Sample resides. He is practically blind. His general health is poor. However, he has many people to read to him, and, strange to say, with very little sight he uses a type- writer, and he writes his views to many people throughout the country. I have just received a short article from Mr. Sample, which he has written, in which he makes certain suggestions relating to @ just, a lasting, and a permanent peace in the world. This article was written by Mr. Sample upon his typewriter, which was quite a task for a man ap- proximately 90 years of age, and by one who has practically entirely lost the sight of both eyes. It is a high privilege to place this brief article in the Con- GRESSIONAL RECORD 50 all may read his views upon this highly important subject. Mr. Specker, under leave to extend my own remarks in the Rezcorap, I include herewith the article which was written by Mr. T. M. Sample, of New Palestine, Ind., which is as follows: A UNITED NATIONS GOVERNMENT SUGGESTION Writers and poets have, for a long time, written of the posaibility of a world parlia- ment. The time has come for this prophecy to become true by establishing a United Na- tions government, with a federal constitu- tion, patterned after the Federal Constitu- tion of the United States. It is my firm belief that the officials of the United Nations should write and adopt gq constitution which provides for a purely representative government, giving to each member nation complete autonomy in all affairs and further providing that the people of each nation shall adopt and maintain the kind and type of government they desire. It is further my suggestion that when two- thirds of the nations agree to become mem- bers, it shall then be the duty of those to acquire a site for the establishment of the place this government shall function. As a suggested site for this government, I would prefer Palestine, because it is a center of world population. The Arabs could be ex- pelled, after proper financial arrangements were made, and the Jews would thus become the owners of the land to which they are rightfully entitled. This would, I am certain, solve the Pales- tine problem. Thus, Palestine would be- come the home of the United Nations, as the District of Columbia is now the seat of our National Government. It is further my belief that all governmental functions should be vested in @ parliament, and without the people of Palestine having any voice therein. May I say that the main purpose of the United Nations, as herein proposed, will be to insure a lasting and a permanent peace, to prevent strong or possible aggressor na- tions from disturbing the weak and smaller nations, to insure a free intercourse of trade and commerce among the member nations, and to create good will and friendship among the people of those nations. In my opinion, such a government would aid materially in settling the unrest and the many disputes and the uncertainty which now maintains among many of the nations of the world. The acts passed by the parliament would, and should, have the full force and effect of international law, to be enforced by the all-powerful governments participating, rather than to be based upon treaties and commitments made by individual nations, and which are quite frequently violated. Iam confident that all nations would ulti- mately become member nations and that the United Nations government would ultimately become the pride and joy of all of the people. When the United States of America joined free states to form a union, and the greatest government on the face of the earth, a United Nations government was not then idealized or contemplated. The improve- ment of the governments of the world have been very slow. As the people became en- lightened, they have been striving to make better their government in the interest of the people. Wendell Willkie made a great contribution to world thinking in his book, entitled “One World.” To my way of think- ing, we are now ready for the United Nations government. It is true that the ambitious, the greedy, and those seeking self-aggran- dizement or world power will seek to hinder and delay this accomplishment. It is the duty of all true liberty-loving people to rise to the task which lies before us, to do those things which will insure peace to the people of the world, and to safeguard the heritage which has been bequeathed to us by our fore- fathers. Let us have peace, and let us pre- pare for the Prince of Peace when He returns. T. M. Samrusz. New PALEstIne, Inp. Allen T. Treadway EXTENSION OF REMARKS HON. THOMAS J. LANE OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. LANE. Mr. Speaker, under leave to extend my remarks in the Recorp, I wish to include herein my statement on the late Congressman Allen T. Tread- way, of Massachusetts. Allen Towner Treadway, Republican, represented the First Massachusetts District in Congress from 1913 to 1945. On Sunday, February 16, 1947, at the age of 79, he died in the city where he APPENDIX TO THE CONGRESSIONAL RECORD had labored so long and-so untiringly as a lawmaker of the United. States. Through the pages of the CoNncREs- sionaL Recorp, which reported, on so many occasions, his sound criticism and constructive advice, it is appropriate that we pay tribute to his memory. Allen Treadway was born in a house on the site of the present Red Lion Inn at Stockbridge, Mass., on September 16, 1867. His parents were the late William Denton and Harriet Heaton Treadway. He came from a long line of innkeepers, and in later years came to own both the Red Lion Inn and Heaton Hall. Mr. Treadway was educated in the Stockbridge public schools and at Am- herst College, from which he was grad- uated with the class of 1886. He en- tered public life as chairman of the town committee of Stockbridge. In 1904 he was advanced to the Massachusetts House of Representatives. He served in the State senate from 1908 to 1911. In 1909 he became the senate president. He went to Washington with the Sixty- third Congress in 1913. Congressman Treadway was a close friend of the man who was to become a President of the United States. He and Calvin Coolidge had much in common. They knew the meaning of hard work, and they believed in thrifty government. In the birthplace of our democracy, the New England town meeting, they learned the lessons of responsibility. A position on any public issue, once tested by mind and conscience, was never surrendered to the high-pressure campaigns of lob- byists. Both men possessed unwavering integrity, and they fought for the prin- ciple rather than applause. It was this steadfast quality of mind and heart which distinguished their careers, whether their party was in power or not. In Congress, Mr. Treadway led the fight to win reduced prices on anthra- cite coal for New England consumers, He called for congressional investigation of the Pennsylvania anthracite indus- try and for Government regulation of the industry to save the public from exor= bitant prices. He was conspicuous in his opposition to the New Deal and the policies of the late President Roosevelt. In 1936 Mr. Treadway called for the impeachment of Henry A. Wallace as Secretary of Agriculture after Wallace had termed a Supreme Court decision abolishing the AAA a legalized steal. He fought against Wallace’s agricultural theories and he criticized the Roosevelt Brain Trust. Though we on the Democratic side of the aisle often opposed Mr. Treadway’s viewpoint, we could not help but ac- knowledge the independent judgment, the courage, the high probity which he brought to his career as a public servant. Had he not been forced to retire in 1945, because of ill-health, he would even now be chairman of the House Ways and Means Committee, one of the most im- portant posts in the Government, an honor which he merited by his long and distinguished service for the Nation and -for his party. During his businesd career he was trus- tee of the Lee Savings Bank and director of the New England Fire Insurance Co.
APPENDIX TO THE CONGRESSIONAL RECORD and the Berkshire Life Insurance Co. He was a thirty-third degree Mason, an Elk, a Granger, and a member of Alpha Delta Phi. He received a doctor of laws degree from Amherst in 1934. Mr. Treadway was a member of the Episcopal church. His wife, the former Sylvia Shares, of New Haven, Conn., whom he married in 1893, died in 1943. He leaves a son, Heaton I. Treadway, of Stockbridge, who was in Florida at the time of his father’s death. For nearly a third of a century he served uninterruptedly as a Member of the Congress, In that time he witnessed World War I, boom, bust, World War II, and the emergence of his country as the strongest Nation on earth, respected for its moral as well as its material power. Step by step he grew up with the Con- gress and helped it to develop from a part-time debating society to become the most influential body in the country to- day. We miss the intelligence and character which he brought to its councils. But even though his physical presence has departed from us, he left behind him a high standard of service which those of us who knew him shall remember and seek to emulate. Allen Treadway'’s spirit lives on in the Congress to which he dedicated the best years of his life, The Trade-Agreements Program and the Farmer EXTENSION OF REMARKS HON. BERTRAND W. GEARHART OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 5, 1947 WHO DOUBLE-CROSSED WHOM? Mr. GEARHART. Mr. Speaker, in a campaign address delivered by Franklin Delano Roosevelt, when he was a candi- date for President the first time—that is, at Baltimoreon October 25, 1932—he gave this assurance to the American people: Of course, it is absurd to talk of lowering tariff rates on farm products. I know of no excessively high tariff duties on farm prod- ucts. I do not intend that such duties shall be lowered. To do so would be inconsistent with my entire farm program, and every farmer knows it and will not be deceived. Shortly after the enactment of the so- called Trade Agreements Act of 1934, re- dubbed by the State Department for po- litical effect “the reciprocal trade agree- ment program,” the then President, to allay the fears of the agriculturists of the country, wrote, on June 15, 1934, the fol- lowing letter to the then Congressman Prank Buck, of the Third District of Cali- fornia, as follows: My Dear Concressman Bucx: I am some- what surprised and a little amused at the fears you say have been aroused in California because of the enactment and the possible administration of the Reciprocal Trade Agreement Act. Certainly it is not the purpose of the administration to “sacrifice the farmers and fruit growers of California in pursuit of the will-o’-the-wisp of foreign markets,” as pub- lished reports would make believe. I trust that no Californian will have any further concern or fear that anything dam- aging to the fruit growers of that State, or of any other State, will result from this legis- lation. Very sincerely yours, FRANKLIN D. ROOSEVELT. But in spite of these Presidential as- surances, sincerely made, no doubt, the international New Dealers down at the State Department, those who had been entrusted with the administration of this measure, continue to throw agriculture to the wolves, to cut and slash agricul- tural tariff rates with a gay indifference of this to the following result: First, the protective tariff schedules on 324 agricultural products have been cut, slashed, as the record reveals, to an aver- age of 40 percent of the tariff schedules established by the Smoot-Hawley Tariff Act. Second, absolutely no tariffs on agri- cultural products have been raised, though the Trade Agreements Act au- thorizes it in appropriate cases. Third, on 95 crop and livestock prod- ucts the Smoot-Hawley tariff rates have been frozen, that is, they cannot be raised by Congress during the period of the agreements, without resorting to the drastic but short-of-war action of de- nouncing the agreement or by the exer- cise of an escape clause which has been inserted in a few of the more recent trade treaties. Fourth, 77 agricultural items that were on the free list of the Smoot-Hawley tariff law have been frozen in that sta- tus; that is, the State Department, in its 29 trade agreements, has effectively and morally tied the hands of Congress, and, by the same device, has rendered itself utterly impotent to protect the people from the consequence of their own folly. And, now, Mr. Speaker, with this shocking record of repeated defiances of their late Chief of State, the former President of the United States, the boys down at the State Department now announce, with a gay nonchalance that is indeed intriguing, a new list of several hundred agricultural items, all crop and livestock products, which it intends to slash an additional 50 percent in trade agreements now under negotiation, many of which have already been cut to the limit previously allowed by the Trade Agreements Act as originally enacted. So I arise to inquire, Mr. Speaker, just who double-crossed whom? Archbishop Stepinac EXTENSION OF REMARKS HON. AIME J. FORAND OF RHODE ISLAND IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. FORAND. Mr. Speaker, under leave to extend my remarks in the A631 REcorD, I include the following resolu- tion adopted by Providence Council, No. 95, Knights of Columbus, at a meeting held in Providence, R. I., on February 10, 1947: Whereas the Government of Yugoslavia has recently sentenced Archbishop Stepinac to a long term of imprisonment after a trial that was a travesty on justice and offensive to the democratic ideals of freedom and fair play; and Whereas the only effective method of pre- venting another such outrage lies in a strong and united protest from the nations which still cherish fairness and guarantee a fair me for all accused persons: Now, therefore, it Resolved, That Providence Council, No, 95, of the Knights of Columbus, does hereby condemn the actions of Tito and his govern- ment in the unfair trial and cruel sentencing of Archbishop Stepinac, and calls upon all freedom-loving people to join in this pro- test; and be it further Resolved, That a copy of this resolution be forwarded to the Members of Congress from the State of Rhode Island for appropriate action. Louis DeCrosta, Grand Knight. Attest: [SEAL] FrANcis L, PALMER, Recorder, Bulgaria Seeks Power and Strength Through Slavic Federation EXTENSION OF REMARKS HON. RAYMOND S. SPRINGER OF INDIANA IN THE HOUSE OF REPRESENTATIVES Thursday, February 20, 1947 Mr. SPRINGER. Mr. Speaker, I ask unanimous consent, under leave to ex- tend my own remarks in the Appendix of the Recorp, to include an article, writ- ten by Mr. Soterios Nicholson, of Wash- ington, D. C., on the subject Bulgaria Seeks Power and Strength Through Slavic Federation, which follows: BULGARIA SEEKS POWER AND STRENGTH THROUGH SLAVIC FEDERATION (By Soterios Nicholson) Two noteworthy events of keen interna- tional interest that have taken place in re- cent weeks are, first, the announcement by Alexander Obbov, vice premier of Bulgaria, that his nation and Premier Tito’s Yugo- slavia are working toward unification of their two countries into one large state link- ing the Black and the Adriatic Seas, and, second, the sensational identification of Gerhart Eisler, accused by the House Com- mittee on Un-American Activities of being the No. 1 United States Communist. Wash- ington authorities interpret both these events as an indication of the unflagging Moscow attempt to throw a Red net over independ- ent democratic countries, including Greece, and thus live up to its original aim to en- circle the world with the Communist ideology and way of life. Vice Premier Obbov’s announcement about the eventual federation of Bulgaria and Yugoslavia into a single Slav state comes as no surprise, in view of the earlier announce- ment of the customs union between Albania and Yugoslavia, and the many other sly plots carried out by Russia to gain ports on the Aegean Sea, as well as to gain control of small neighboring nations, such as Greece,