A1302 for the fact that this program is beyond salvage. In January alone this Department ran up its losses by $28,719,240.92 on butter, dried milk, cheese, and dried eggs. The total losses on these four commodities for 7 months ending January 31, includ- ing the cost of storage, was $112,670,- 971.37. This is dismal news for the over- burdened taxpayer now sacrificing to pay to the Federal Government hard-earned or saved money so that it can continue such extravagant and useless activities. It is equally bad news for everyone who has been trying to find enough money to buy these or other foods. But that is not the end. On January 31 the Department had on hand 419,326,976 pounds of those four com- modities. The losses incurred were in the disposition of 375,005,811 pounds. Con- sequently we can expect at least an addi- tional loss of $115.000,000. And there is no indication that the Department has any intention of stopping this indefensi- ble program of buying, hoarding, and then selling at further losses. This offers part of the reasons why the entire program of purchasing food com- modities which cannot be stored indefi- nitely should be reexamined immediately. The Department should not be permitted to continue it unless clear and convinc- ing reasons can be given for such con- tinuation. Its operations at a time like this may well bring about an aroused de- mand for the climination of the entire program, Immorality in Government EXTENSION OF REMARKS or HON. THOMAS B. CURTIS OF MISSOURI IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. CURTIS of Missouri. Mr. Speak- er, under leave to extend my remarks in the Reconp, I include the following edi- torial from the St. Louis Globe-Democrat of March 6, 1951: IMMORALITY IN GovrRNMENT Senator Furericur took a look at the stench uncorked by his committee's RFC investigation and suggested it indicates a need for a gencral investigation of the moral level of our Government. The only thing wrong with that remark ts it is too far br= hind public sentiment. For months the side- walk citizens of this country have stood aghast at the evidence of nonchalant im- morality in the bighest places, and the devas- tating effect it is having on the Nation's whole code of pohtical ethics, Claude I, Bakewell, Republican candidate for Congress trom the Eleventh District in the election to be held next Friday, is mak- ing Government and party morality the dom- inant issue in his campaign. “The chief enemy of America,” he says, “is not the Rus- sinns, the North Koreans, nor the Chinese Reds. It is not inflation, although that is bad enough. It is something much more deadly—cynicism,” And this cynicism has its origin in the miasma of corruption in high places, ymong those to whom the public should look for honest leadership at Federal, State, and local levels, But coupled with cynicism is an ap- palling apathy among decent American vot- ers which has permitted the control of Gov- ernment to slip by default into the hands of gangsters, hoodlums, and corruptionists. Mr. Bakewell’s plea is for the voters to be not only aghast at what is happening in America but to do something about it—elect men to office who will be no part of the plun- der bund and employ courage and intelli- gence and native honesty to the effort of cleaning the Augean stables. Let us look at the recent record: The multi-billion-dollar RFC all but con- victed of requiring only that loan applica- tions be made through the right people, who in turn collected handsome fees and saw to it that persons close to the White House received suitable gratuities. The Fulbright committee’s corrective ef- forts ridiculed as asinine by President Tru- man, a reckless brush-off of evil in govern- ment only slightly less inept than his brand- ing of the Communist investigation as a “red herring.” Gen. Harry Vaughan, long-time, loose- tongue crony of the President, associated with gifts of deep-freeze units made to win government favor—and with never a rebuke from the White House, much less & dismissal, Another Truman pal, John Maragon, using White House friendship for personal profit. Maragon is unique among favor-peddlers in that he was convicted. But only of perjury, @ technical appeal from which now has a Washington court of appeals tied in knots. The Kefauver crime inquiry, which has be- gun to reveal government at local levels rot- ten with the bribery and corruption of or- ganized gambling. The Tydings campaign investigation in Maryland, and its evidence of politics at an unbelievable level of degradation. And in Mississippi, where Federal Jobs were frankly and openly sold to the highest bidder, Would this have happened had Washiugton not offered the cue in ethics? And earlier, the Taft election battle tn Ohio, where anti- Taft campaign tactics reached an all-time high in viciousness, Along a slightly different. line, we have Price Controller DiSalle demonstrating the reckless attitude of officlaldom in spending $17,000 of the people's money to telegraph lengthy instructions to local price chiefs in- stead of writing them at a fraction of the cost. And what are the effects? In New York @ group of miscreant teen- agers lstened to a lecture from the judge on respect tor the law, then inquired casually why they should have respect for Govern- ment when their seniors, among them Gov- ernment's own officials, show scant respect for it. Surely such stunning truth from the generation next to have charge of this Na- tion's future should wake us up. And to go on up the age scale: College youths succumbing to the lure of easy money through fixed basketball games; a rash of income-tax evasions by upper-bracket per- sons—all demonstrating that too many peo- ple feel themselves above the law. How can our democracy hope to survive amid this ruinous psychology of “anything goes that you can get by with?” How can it be stopped? Senator Futsricur's suggestion implied a morals investigation by congressional com- mittee. But is the hour too late for that? One cannot forget that President Truman’s neat trick of getting copies of all Congress- men’s letters to RFC produced an instant committee disinterest in pursuing the RFC Inquiry much farther. It 1s to end this week. So there follows an inovitable sus- Picion that congressional hands as a whole are so solled their owners prefer a charge of whitewash to an appearance in the court of public opinion Certainly Congressmen have @ duty to introduce constituents around Washington. If their introduction letters APPENDIX TO THE CONGRESSIONAL RECORD were no more than that, why are they 50 apprehensive of embarrassment? Bo arises the dismaying question: Has Government immorality now gone so far— become so all-inclusive—that it cannot now be trusted to find the truth and remedy it? It seems to us nothing will suffice now but an outraged revolt by the people them- selves; a revolt which will force upon Gov- ernment, despite all political resistance and organized entrenchment, a tidal wave of sim- ple, old-fashioned religion, Morals in Government EXTENSION OF REMARKS HON. GEORGE MEADER OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. MEADER. Mr. Speaker, under leave to extend my remarks in the Rec- orp, I include the following editorial from the Adrian (Mich.) Daily Telegram of March 7, 1951. Morais IN GOVERNMENT Scarcely had the country had time to con- sider the comments of one Senate committee on how menacingly powerful has organized crime become in the United States before another Senate committee suggested the need for a congressional investigation of “the general moral level” of the Federal Gov- ernment’s executive branch. In the first instance the Kefauver crime commission was reporting that its investi- gation showed the extstence of a crime syn- dicate so powerful and so widespread in its operations that it could easily be switched into an underground movement capable of taking over the Government itself In the second instance Senator FULBRIGHT, chair- man of a committee that has been investi- gating the Reconstruction Finance Corpora- tion, points to “a double standard of morality for public office and private life.” His com- mittce has been looking into the use of in- fluence, pressure, and favoritism in obtain- ing loans from the banking agency. Both investigations and their resulting re- ports deul with the morals of Government, A crime syndicate of the proportions de- scribed by the Kefauver committee cannot exist without the knowledge, and even con- sent, of officinis at various levels of govern- ment. And the committee has heard con- vincing evidence of official knowledge and noninterference. As for the Fulbright com- mittee’s investigation of the RFC, it is a sordid account of offictal pressure, influence, and favoritism exerted to get big loans of public funds for business ventures of dubi- ous worth, some so shaky that the enter- prises failed despite the millions poured into them. Nothing actually forbidden by law and therefore punishable by the courts has been produced by the Fusricur investigation. Nothing has been shown to have been flle- gal about RFC loan policies. But things may be legal and still be wrong and improper, That's a distinction not to be ignored. For ae Senator Fu.sriaut points out, “Too many people seem to think that just becnuce an action by a Government official is legal, it is therefore right.” Neither the Kefauver nor the Pulbright committees’ finding can be said to be biased or prejudiced by partisan political consid- erations. The chairmanships and the ma- jority of committee posts are held by Bena- tors belonging to the same political party as that of the administration. But political
APPENDIX TO THE CONGRESSIONAL RECORD parties have little to do with American Gov- ernment these days, for our Government for the last 18 years has been one of personali- ties rather than parties Upon his election in 1932 Franklin D. Roosevelt began working for his reelection 4 years in the future. But he did not do it by trying to bring together dissident factions within the Democratic party which had nominated him in Chicago. He began build- ing his own party. He appealed to various income groups with promises of what his administration would do for them. He de- pended upon the gratefulness of those groups and the influence of powerful political ma- chines in the biggest cities to perpetuate himself in power. And these machines were gangster-ridden. Harry § Truman depended even more than did Roosevelt upon promises of special fa- vors and a record of performance of favors to win in 1948. To labor leaders he prom- ised repeal of the Taft-Hartley law, and to farm groups he declared they should vote for him out of a sense of gratefulness for the benefits they got from price-support laws and other farm legislation. And even more than his predecessor at the White House, he relied upon the machines in the big elties to deliver the vote. Meanwhile he ran a gov- ernment by crony, passing out fat appoint- ments to close friends and acquaintances, preterably to men from his home State of Missouri. It is small wonder that moral standards in government have fallen to a new low Small wonder that the “Washington fix” has be- come commonplace, that influence and fa- vorable treatment from officialdom is ped- dled for money or for votes Morals in government will be exactly of the standard that the people insist that they be Higher standards can be had when the public decides that polictics is something from which it dares not stand aloof, when it realizes that politics is something in which it must take an active and continuous part Far too many of our peuple these days have a patronizing attitude toward politics and holding public office, They “don’t care to mix politics’ They will have to “mix in politics” if ever there is reform Post Office Department Deficit EXTENSION OF REMARKS OF HON. USHER L. BURDICK OF NORTIT DAKOTA IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. BURDICK. Mr. Speaker, the de- ficiency in the Post Office Department of over $500,000,000 1s the subject again before the Committee on Post Office and Civil Service. The Postmaster General reports that $160,000,000 of this deficit 1s due to penalty and frank mail, that is Department and Congressional mail. That amount cannot be charged as a part of the Post Office expense and is not carried that way on the books, but this amount does show up in the gen- eral deficiency. There is no good reason why the cash users of mail should have to pay more postage in order to allow this penalty and frank mail to be han- dled. The Government should make a direct appropriation for this the same as any other department expense. We therefore deduct this $160,000,000 from the deficit and that leaves $340,- 000,000, the amount that the expendi- tures of the Post Office exceeds the in- come. There is another item that should be determined by Congress and that is how much annually should the Post Office Department be subsidized for the educa- tional value of the service to the people. Various amounts have been suggested, but I think $100,000,000 annually could be well spent in this country in order to disseminate information. The news- papers do a lot of printing for which they derive no revenue. For example, newspapers carry, or most of them do, news from Washington, telling all about what is going on here in Congress, That informs the people—not only those who take a newspaper but everyone who reads them, That is a definite service which all the people—the taxpayers— receive and I do not beheve any tax- payer would object to allowing news- papers some reasonable low rates to com- pensate them for free printing. Now, deducting this $100,000,000 from the $340,000,000 would leave $240,000,000 that will have to be made up with in- creased postage. When the Govern- ment sells postal cards for 1 cent each, it loses a quarter of a cent on each ecard. This is not justitied and the people will not object to paying more for this postal-card privilege. It is found that 90 percent of postal cards are for advertising purposes and ad- vertising cannot be obtained anywhere for less than cost, except the Govern- ment. Magazines that carry 5C percent ad- vertising or more are receiving a ridicu- lously low rate for the distribution of their advertising. No such advertising can be obtained from any place else, and where the advertising is presumed or in- tended to increase sales and make prof- its, the users ought to be willing to pay a higher rate. This second-class mail shows an annual loss of $200,000,000. The correction of these two items alone, postal cards and advertising would balance the loss in the Post Office De- partment, without interfering with pres- ent rates on nonprofit mail such as the distribution of religious, educational, and paternal literature. Newspapers— the small newspapers—would not be ma- terially affected and the larger dailies, with page after page of advertising, should be willing to pay more for that part of their publications carrying adver- tising. Fourth-class mail, or parcel post, is another item of heavy annual loss. We have been running the parcel-post sys- tem with an annual loss of $105,000,000. The law providing the set-up for parcel post said specifically that this depart- ment must pay its own way. The Con- gress will not have to act on this matter, however, as under the law the Postmaster General can apply to the Interstate Com- merce Commission for permission to raise the rates. This the Postmaster General has done and the case is now pending. It looks now as though the great deficit in the Post Office Department can be wiped out, at least down to the $100,- 000,000 which Congress can earmark as an educational or subsidy fund for the dissemination of information, which the A1303 people will never have access to unless this subsidy is provided. ‘There never was a time in the history of this country when the people needed more informa- tion than they do now. Newspapers and magazines, which now carry important information for which they are not di- rectly paid, should have some encour- agement to continue by participating in a favorable postage rate. In order to keep this deficit down and obey the commands of Congress, the Postmaster General has reduced the service. This was a mistake, as there is no reason why the people cannot have good service. The fault. though, in cur- tailing this service, was the responsibility of Congress and not the fault of the Post- master General. The service can be re- established, salaries to postal workers can be raised so that they may exist un- der a decent standard of living, and still the deficit can be kept down to $100,- 000,000—the subsidy fund—if postal cards, second-class mail, and parcel-post rates are increased. This parcel-post venture has had a disastrous effect on the express compa- nies, They cannot carry material at a rate to meet the rates of parcel post— the Government cannot do it either, as now they are running behind $105,000,- 000 annually. These present Govern- ment rates have injured the express business to the extent that 40,000 ex- press employees were laid off last year. Not only is the Government losing on this venture, but, at the same time, it is taking jobs away from men and women in private industry, and if kept up will finally put every express company out of business. The users of parcel post are willing to pay higher rates, and when the rates of parce] post and express are in proxima- tion the business will go back to the ex- press companies, at least there will be no great moncy incentive to send parcels by parcel post, because it is so much cheaper than express rates. Dr. Jay McLean EXTENSION OF REMARKS OF HON. PRINCE H. PRESTON, JR. OF GEORGIA IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. PRESTON. Mr. Speaker, under leave to extend my remarks, I include a recent newspaper article from the Sa- vannah Press paying tribute to a Geor- gian who has achieved a high degree of success in the field of medicine. I join with Americans everywhere in paying tribute to Dr. Jay McLean, who has con- tributed so much toward saving lives of our fighting forces in the armed services. The article follows: BavannaH Docror HELps Save Limas or Ficut- inc Men—Hepartn, Discoverep uy Dr. McLean, Beina Usen In Korea Heparin, an anticoagulant currently cred- ited with saving the frostbitten limbs of hundreds of Americans fighting in Korea,
A1304 was discovered by a Savannahian, Dr, Jay McLean. Dr. McLean, who has for the past cou- ple of yeurs been connected with the Savan- nah Tumor Clinic, discovered heparin in 1916 while doing research work at Johns Hopkins. The current issue of Life magazine car- ries a feuture article headed “New treat- ments tor frostbite—they save Mmbs of Korean casualties,” in which it describes treatments given fighting men in Korea suffering from frostbite. The article ex- plains that these injured men, unless other- wise wounded, are given shots of heparin to prevent the clotting of blood in the injured parts, An article appearing in the Evening Press of January 11, 1950, told of Mr McLean being included in the eighth edition of American Men of Science, which had just been published at that time, and stated that “Dr. McLean is known internation- ally for his discovery of heparin, the sub- stance of the body which keeps the blood from clotting.” Dr. McLean holds a decree of bacholor of science from the University of California, a master of sclence degree from the Unt- versity of Pennsylvania, and received his doctor of medicine degree from Johns Hop- kins where he served as assistant resident surgeon for a# numbe: of years prior to 1923 when he was awaided a National Research Council fellowship and went to Europe for postgraduate studies at the universities at Berlin, Leipzig, Heidelberg, and Paris. Why I Want To Grow Up in America EXTENSION OF REMARKS OF HON. CHARLES R. HOWELL OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. HOWELL. Mr Speaker, under leave to extend my remarks in the Rec- orp, I want to call to the attention of all Members of Congress the remarks of a 15-year-old constituent of mine who has recently won a $2,500 scholarship for his statement Why I Want To Grow Up in America. The boy’s name is Richard Henderson, of Mount Holly, N. J. When Dick Henderson heard of the national letter writing contest sponsored by an anonymous Californian, he sat down and wrote the following letter in a few min- utes, This letter, the one to be judged the winner of 9,582 letters, is being broadcast by the Voice of America to all tne Peoples of the world. It speaks for self: Wuy I Want To Grow Up In AmERIcA (By Richard Henderson, Mount Holly, N. J.) Dear FrieNDS ACROSS THE SEA‘ From the heart of u small town of friendly peuple, I want to tell you why I love America and why I want to grow up here. In our school we have almost every na- tionality, color and creed and we get along together, too. My best pal is an Italian boy. When a new student comes to our school from another land, we try to make him feel at home, simply because we like him. If you should move u*xt door tomorrow, I'll wager the neighbors would soon let you know that they would be hurt if you needed anything and didn’t ask for it. The majority of Americans are like that and don’t let any- One tell you different. The great heart that is America is not rotten as dictators would have you believe, but it is good, strong and steeped in the idea that all men deserve their individual freedom. We have fought to preserve it for ourselves and for the world and the biggest tribute to that fight are the peoples of the world, who come to our shores and remain to love and cherish our way of life. Some day I pray that we may walk in any country in the world, as all may walk in ours now, not to kl or enforce our govern- ment or our laws upon you, but simply to say, “J come here as your friend.” God bless you all, Medicine in Crisis EXTENSION OF REMARKS or HON. JOHN 0. PASTORE OF RHODF ISLAND IN THE SENATE OF THE UNITED STATES Monday, March 12, 1951 Mr. PASTORE. Mr. President, I ask unanimous consent to have printed in the Appendix of Recorp the first of a serics of 22 articles which have been written by Mr. Selig Greenberg and which appeared in the Providence Jour- nal and Evening Bulletin, a newspaper published .n the city of Providence, State of Rhode Island, entitled “Medicine in Crisis.” These articles present a very impartial and objective discussion of the conditions faced by our medical schools and the medical profession in general. I feel that the Members of the Senate would be very much interested in read- ing these articles in connection with their consideration of S. 337, which is a bill to amend the Public Health Service Act and the Vocational Education Act of 1946 to provide an emergency program of grants and scholarships for education in the fields of medicine, osteopathy, dentistry, dental hygiene, public health, and nursing professions, and for other purposes. I am asking that the articles be in- serted in a piecemeal fashion because the entire series has not yet been pub- lished and will be made available some time after April 1, which might well be after S. 337 has been acted upon. How- ever, I feel that the articles which have appeared thus far will be most helpful and assure the Senate that from time to time I shall request to have the remain- ing articles inserted in the Appendix of the ReEcorp. There being no objection, the article was ordered to be printed in the Recorp, as follows: MEDICINE IN CrIsis—-MeEpIcaL EDUCATION FACING) PROFOUND FINANCIAL CrISts— AMERICAN INSTITUTIONS ALSO Have Ssrious INTERNAL ProsiemM Over Scope or Teacn- ING; OFTEN aT Opps WiTH ORGANIZED LEADERSHIP IN PROFESSION (By Selig Greenberg) American medical education—the key- stone of what has long been represented as the finest system of health care in the world—is confronted with a profound crisis. The crisis 1s twofold. First of all, the Nation's medical schools are fuced with the most critical financtal emergency in their history. Secondly, the institutions training the doctors of tomorrow are going through a APPENDIX TO THE CONGRESSIONAL RECORD serious internal crisis. In this crisis of function, of determining what they should teach to keep up with the constantly ex- panding frontiers of medical knowledge and of how they can teach it most effectively, they frequently find themselves at logger- heads with the conservative leadership of the organized medical profession. Both aspects of the crisis are of far more than academic significance. Indeed, they affect vitally all of us. Our medical schools are by all odds our most important asset in the health field. They are the tools with which this country has wrested world leadership in medicine from the great European universities. Many of the spectacular advances in medical science, which to an unparalleled degree have warded off death and made hte longer, easier, and safer, have been achieved in theiz lab- oratories and teaching hospitals. Because of the high quality of their train- ing in the diagnosis and treatment of dis- ease, you feel secure when you call a doctor for a sick member of your family. It 1s fu- tile even to talk about various proposals for improving the distribution of medical care in the United States unless there is as- surance that our medical colleges can con- tinue turning out competent physicians and can train them in adequate numbers. There is no such full assurance today. The desperate financial plight of the med- ical schools, the reason for which will be discussed in subsequent articles of this series, holds the direct sort ot threat to both the quality and quantity of medical education. MIGHT LOSE MOMFNTUM Many of the schools already have been forced to curtull ¢heir activities or to defer essential expansion of the scope of their teaching, thereby impairing its quality. Unless some way can be found to ease their financial difficulties, all of them will have to lower their standards or reduce the number of students they can train. Some may havo to do both. Such a development would be tragic. For we might actually lose the momentum of medical progress The kind of medicine we get depends fundamentally on the kind of inedical education we have. The quality of medical care and research we can expect in the years to come will be determined pri- marily by the adequacy of our facilities for the training of good doctors. Dr. Alan Gregg, director of the medical sciences divisicn of the Ruckefeller Founda« tion for the past 20 years and one of Amer- icu’s most distinguished authorities on med- ical education, recently summed up ihe situ- ation succinctly when he said that support of medical schools of the highest quality was “the only way in which older people can luok after their children after they are gone.” SCHOOLS BEING “STARVED” “If we let medical education in this coun- try slip,” Dr. Gregg warned, “then it is our children and our grandchildren who will be paying for the inadequate training of men to ‘use medicine as beat it can be used.” Dr. George Packer Berry, dean of Harvard Medical School, feels just as strongly that the muintenance of top-grade medical education is our paramount task in the health field. In one of two interviews I had with him he pointed out that while millions of dollars were being spent for research into the causes of specific disease, the medical schools were being “starved for bread-and-butter money.” Thia, he thinks, puts the emphasis in the wrong place. “We must focus our attention,” Dr. Berry said, “on the goose that lays the golden eggs—the training of people who can furnish the medical care we are now capable of giv- ing and who can do the research to improve that care still further. Or to put it in an- other way, we must nevé. forget that the
APPENDIX TO THE CONGRESSIONAL RECORD main stem of medicine is the production of doctors of the highest quality. There isn't much sense in concentrating on the branches while neglecting the main trunk ” WILL WIDEN EXISTING GAP The threat of cutbacks in medical educa- tion comes at a time of expanding demands for medical service and of an anticipated sharp rise in such demand because of the national emergency and the threat of a new world war. Men in uniform require a great deal more medical personnel than civilians do Even without all-out war, the armed services are certain to dip deeply into our reservoir of medical manpower within the next few years. This will widen still further the gap which many authorities belleve al- ready exists between the available number of physicians and our needs for health care The progress in medical science during the past 50 years has been described as greater than the advance made In the 2,400 years be- tween the time of Hippocrates and the dawn of the twentieth century. But slong with the triumphs of medical knowledge have come growing complexities. These have made medical education the longest, must arduous, and most expensive form of training we have. They also have set in motion forces which are gradually revolutionizing the day-to-day practice of medicine. Medical education hus set the pace for the far-reaching changes in medical practice and has at the same time had to adapt itself to these changes as they came along This has not only led to a steady increase in the cost of training doctors but has embroiled the medical schools in the crisis of function with which they are now struggling . SEEDS OF INTERNAL CRISIS It is relatively easy to put your finger on the aspect of the emergency inv >lving the dollars and cents of mounting operating deficits. But though it is much less tangible and must laymen have never even heard of it, the second aspect is just as compelling, While not quite so immediately threatening as the money troubles, the friction with powerful segments of organized medicine caused by the reappraisal of medical school functions holds serious possibilities. The internal crisis stems, briefly, from the growing conviction of many medical edu- cators that-— 1. The job of the medical colleges extends beyond the education of new physictans, the advancement of knowledge through research and the care of patients in teaching hospitals and clinics It is also their function to furnish continuing education to established doctors to help them keep abreast of rupidly developing new knowledge and methods. 2. The medical schools have to provide a constantly widening range of community medical serviccs through the hospitals and clinics which they use for teaching. They have to do this if they are to give the kind of training which will be both adequate scien- tifically and in touc> with the environment where the medicine they teach will eventu- ally be practiced. 8 Medicine cannot be taught in a vacuum, It is a social as well as biological science, and its teaching cannot be divorced from the prceblem of the economics of medical care It cannot be disassociated from the challenging issue of how the benefits of modern medi. cine can be mde available to all, regardless of economic circumstances; of how we can bridge the chasm between the knowledge of the diagnosis, treatment and prevention of disease and its application to the needs of individuals and the community, between what medicine can do and what it actually does for a large proportion of the population. It is the duty of the medical colleges to In- still within their students a wider awarenens of the social and economic factors in the practice of medicine. It is furthermore, part of taelt rs,onsibilicy to Join with others in providiag the lesdership for a frontal at- tack 0. ths still unsolved problems of the most effective ol ganization and distribution of medica) care. This conception of the resnonsibilittes of Medical schools has brought them into con- flict with the American Medical Association and sume of its component societies. In trying to serve as a stimulus and corrective for the medical profession, the schools have also become an irritant. CLEAVAGE HAS DEVELOPED While there is some reluctance on both sides to discuss the matter, there is little doubt that a cleavage has developed between the leadership of the organized medical pro- fession and many of the men who are train- ing the new generation of doctors This split obviously has far-reaching implications, which will be goue into in later articles. All that need be said here is that it is a disagreement on both theory and practice. The theory pertains to the role and respon- sibility of the medical profession in provid- ing the American pcople with more ade- quate medical care ‘The practical questions have to do with the degree to which medical training—which to a striking extent is learn- ing by doing and thus frequently constitutes actual medical service—tends to touch the economic interests of private practitioners. The medical colleges are now going through a significant and extremely inter- esting process of intellectual turmoil and re- assessment This reporter ran quickly into this undercurrent of soul searching and in- ner ferment. ANSWERS TO QUESTIONS SOUGHT I started out about 3 months ago looking for answers to what appeared to be these relatively uncomplicated questions: a Are there enough doctors In the United States? b If there ts a shortage, what are some of the reusons for 1t? ce Just how serious is the financial problem of the medical schuols and what are some of the possible remedies for it? d. What are the medical colleges doing or considering by way of curricular changes to turn out doctors who are not only competent but also have a better undestanding of the social and economic scene in which their patients live and which directly affects the patients’ physical and mental heulth? But I no sooner started to ask these ques- tions than I found that they were closeiy intertwined with the broader problems of the future of medical practice and medical care in this country. ADEQUATE FOR WHAT? When I asked, for instance, whether we had an adequate supply of doctors, men on the faculties of some of our best medical schools came back with these questions Adcquate for what? Why don’t you define, first of all, what you want the physicians to do and how they are going to do 11? Are you talking about a set-up under which, as is now largely the case, the amount of medi- cal care given is substantially determined by ability to pay for it? Or do you have in mird some broader system we muy be able to devise under either voluntary or Govern- ment auspices which would make it possible to meet to a greater extent the needs for medical services? And what sort of practice are you talKing about—the present system of individual practice or wider adoption of group practice which would permit doctors to pool their skills, equipment, and auxiliary personnel much more effectively than they do now? 1 found the some thread of the over-all igsues of medical care and practice running through the other questions I set out to ask. We will inevitably encounter these Issues throughout this series, which will include a discussion of such questions as the ade- quacy of uur present number of doctors and A1305 medical training facilities; the factors which have limited medical-school expansion; the terrific competition for admission to medical schools; the financial crisis of medical edu- cation and the controversy over the proposal to help solve it through Federal subsidies; the extent and meaning of the cleavage be- tween the medical faculties and some of the private practitioners; the role of medical ed- ucation in the friction between doctors and hospitals; the problem of specialization vereus general practice; the light shed by the income of physicians on the operation of the law of supply and demand in the med- ical profession; the pressure exerted by mede- ical educators to streamline medical prac- tice and thereby help reduce the sptraling costs of medical care, and some of the new ideas on the scope and methods of medical teaching which are hatled by authorities as 8 turning point in medicine. MOST QUITE CONTROVERSIAL All of these questions, as you can readily see, are important and complicated Most of them are quite controversial. They can easily trap the unwary layman into unjus- tifled assumptions and conclusions. For this reason great care was taken to consult some of the leading authorities in the fields of medical education, care, and economics in the United States. As you can see from the list of thase interviewed, which is published in an adjoining column, vari- ous views were represented among the men with whom I talked in New York, Chicago, Washington, Boston, and New Haven. Because of space limitations and the technical nature of the material, some of the documentation will have to be omitted. Nor will it be possible to quote directly some of the men interviewed who would consent to talk freely only on an anonymous basis. But throughout this serles every effort will be made to discuss the issues carefully and with full realization that they are not only technically complex but have an immediate bearing upon the health and welfare of the Nation as part of what Dr. Willard C. Rap- pleye, dean of Columbia University’s College of Physicians and Surgeons, has described as America’s most essential industry. Friends of United States of Latin America—FUSLA EXTENSION OF REMARKS HON. OLIN E. TEAGUE OF TEXAS IN THE HOUSE OF REPRESENTATIVES Wednesday, February 28, 1951 Mr. TEAGUE. Mr. Speaker, I want to take this occasion to call to the at- tention of the Congrcss a most impor- tant project which a group of private citizens has undertaken to carry out in Latin America. For a little more than 3 years a small organization composed of public-spirited citizens of the United States and of several Latin-American nations has been quictly building the basis for an improvement program in Central America which may have the most profound effect in developing inter- American friendship. The organization to which I refer 1s known as the Friends of the United States of Latin America, It is headed by Stanley I. Posner, promi- nent Washington attorney and senior partner in the firm of Posner, Berge, Fox & Arent. Mr Posner has voluntariiy taken time: wy iee.1 his pro. tional
A1396 life, in order to devote a substantial part of his efforts to launching this public- spirited undertaking which is already showing by tangible results what can be done to promote the sound economic and political development of the nations of the Western Hemisphere. Though sometimes we should like to forget it, we of the United States have a lot tu ive down in our relations with the governments and peoples south of the border. A lot must be done to erase past impressions which still remain from old- er policies pursued by this Government some 50 or 60 years ago. We sometimes forget, for example, that it was not until January 1933 that the last American Marine was pulled out of Nicaragua. The United States formerly was opposed to any efforts by the Central American and other Latin-American countries to unite politically or economically on any common purposes which might tend to permit the growth of a strong nation or ground of nations to the south of us For years the idea of pan-Americanism was a stepchild. For a time there was fear in business circles that any strong union of Latin-American countries might lead to repudiation of debts. During a long period our pan-American policy, if it could be called that, was in the hands not of our Government but of some five or six private business corpora- tions. It was a privately managed policy, alleviating a iittle distress here, winning the support of a few important men there, as business conditions dictated. Then, after the construction of the Panama Canal, it was feared that any regrouping which strengthened these na- tions might constitute a threat to the Canal. In net effect the whole policy was one of “divide and rule” rather than one of encouraging the growth of a united Latin-American neighborhood on a solid foundation. All of these things which we would like to forget are still matters vivid in the memories of our neighbors to the south. Today none of these impressions is an accurate reflection of the true official policies of the United States Govern- ment. If any of the reasons for our former policy of restriction and frustra- tion were ever valid—and this is a mat- ter on which there could be some dis- pute—certainly they do not apply to- day. Among all our present Worries it is not from a strong and unified nation or group of nations in Latin America tha, the United States needs to fear trouble. In any of the tropical and semi- tropical areas near the Panama Canal, far greater trouble would come from a low level of nutrition or from disease, unrest, dissatisfaction, and the general unhappiness which a low standard of liv- ins brings, than from any amount of political union and economic develop- ment. A sound, healthy economy sup- ported by a happy, healthy, and indus- trious people would be no threat to any one. Mr. Speaker, I want to describe what this organization, the Friends of the United States of Latin America, has been doing to further the sound economic and political development of the important region comprising the five traditional Central American republics and the Re- public of Panama. It is a fascinating and inspiring story of private initiative devoted to a good cause and on a non- profit basis. In this case a private or- ganization is doing something which it is doubtful that government alone could do. Ey person-to-person contact with citizens and civic organizations in Cen- tral Amcrica, it has been quietly cutting through many of the barriers of skepti- cism which the unfortunate policies of earlicr years had planted in the minds of our neighbors. Mr. Speaker, the hopes of these neigh- boring peoples have been maturing for a long time. Over a hundred and thirty years ago the Latin American countries achieved their independence from Spain and began their tortuous struggle for economic independence to match their newly won political freedom. The great liberator, Simon Bolivar, always dreamed that one day the countries of Latin America would be united into a federa- tion which could become a United States of Latin America. The dream was never realized in Bolivar’s lifetime, nor has it been at any other time up to the present. It is true that in 1821 the five states of Central America—Guatcmala, El] Salva- dor, Honduras, Nicaragua, and Costa Rica, which together had constituted the vice royalty of Guatemala under Span- ish rulce—formed themselves into a Fed- erated Republic of Central America. However, they could not even agree on & constitution until 1825, and the union stumbled on unhappily for some 15 years until it finally was dissolved in 1840. From 1840 until we built the Panama Canal, sporadic attempts were made to recreate the Federated Republic of Cen- tral America. At least a dozen times the matter was taken up, each time with no result, The immediate cause for failure was always some residue of interstate jeal- ousy left over from the Spanish period. But fundamentally behind all the fail- ures was the shadow of the Central American jungle and the difficulty of maintaining an interconnected working economy among all the participating countries. To this day it has been prac- tically impossible to maintain any kind of all-weather road system connecting the principal cities of these Central American republics. Swamps and mountains, and jungles which grow al- most overnight, have always been more than a match for people armed only with hand implements. Without roads to get products to market, the agriculture of the territory has been limited largely to bananas and coffee. Without modern equipment and the knowledge of how to use it, this area—peopled though it is by human beings of marvelous culture and great potentialities—has seemed destined to be nothing but a balkanized areca of banana republics, living in a constant state of threatened revolution. Mr. Speaker, here is something to challenge the imagination of anyone who will take the time to think of the changes that some unselfish, friendly help might make in this troubled area which borders on our Caribbean lifeline. The idea of fostering political unifica- tion of the Central American republics APPENDIX TO THE CONGRESSIONAL RECORD by making possible, first, the growth of their economic interdependence, had its beginning in 1947 when Stanley I. Posner represented the District of Columbia Bar Association in the Annual Conference of the Inter-American Bar Association in Lima, Peru. At that time a wave of rev- olutions had been sweeping through Latin America. There had been nine since July 1946. It would have been hard to avoid contrasting the realities of Latin American politics at that time with the history, at least in Central Amer- ica, of constant though unsuccessful ef- forts to reunite the areas which at one time had been a federation in fact. It was at this conference in December 1947 that Dr. Humberto Ugolotti Dansay, an outstanding expert in Latin-American affairs, proposed that the Inter-Ameri- can Bar Association throw its support behind a program which could lead to a political union of South and Central Amcrica. He pointed out that the con- stitutions of El Salvador and Guatemala, among others, already contained provi- sions looking forward to membership in a Latin-American confederation, and that many people throughout Latin America could be counted upon to help crystallize the idea. Though Dr. Ugolotti’s sweeping pro- posal was not immediately adopted by the Inter-American Bar Association, it was enough to lead Mr. Posner to in- corporate the Friends of the United States of Latin America with the pur- pose of encouraging efforts toward po- litical and economic union in Latin America. The Friends of the United States of Latin America, also Known as FUSLA, was formed on May 26, 1948, as @ nonprofit corporation under the laws of the District of Columbia. The pur- poses of the organization as set out in the charter are: First. To promote and encourage the study of the economic and other advan- tages of the political union of all the Latin-American Republics, or any two of them. Second. To provide scholarships to graduate or advanced students of any country in the Western Hemisphere for research or graduate study connected with a proposed political union of any of the Latin-American Republics. Third. To undertake research activi- ties and issue publications related to a proposed political union of any of the Latin-American Republics. Fourth. To sponsor the interchange of cultural, economic, and social infor- mation concerning proposed political union of Latin-American Republics— provided, of course, that all the activities of the association must be of a character permitted by the laws of the United States and of the Latin-American Re- publics concerned. At the time FUSLA was incorporated, in 1948, a strong sentiment for federa- tion already existed among groups of citizens in the five Central-American Republics and the Republic of Panama. What these Central Americans needed was coordination, the asssurance of friendly understanding from their neighbors up here in the United States, and some immediate help in the form
APPENDIX TO THE CONGRESSIONAL RECORD of technical education. They also needed some prospect of future help in procuring materials and equipment for public works like road building and sanitation. As a step toward its over-all objective, the FUSLA organization decided to con- centrate its first efforts into helping non- partisan citizens’ groups in the six coun- tries just mentioned. The officers and advisory board of the FUSLA group have four reasons for believing that they might succeed where others during the past century have failed. They have a definitive program, they have an organ- ization, they have the enthusiasm of a great moral crusade; and last, but not least, they have the knowledge that the economic means are now at hand—pro- vided they can be mobilized—to over- come the obstacles which have proven insuperable in earlier times. Not only are the economic means with- in the realm of possibility, but consider- able spadework has already been done on particular economic problems in various localities of Latin America. When the FUSLA organization was formed there were already some 82 pri- vate international organizations and associations devoted to the promotion of inter-American cooperation. Also there were a number of Latin American schools and other institutions working toward economic improvement of specific areas. For example, there are agricultural ex- periment stations in all six Central American countries. At Turrialba in Costa Rica is the Inter-American Insti- tute of Agriculture, which is backed by the Organization of American States, where great strides are being made in conquering tropical plant diseases. All of these private efforts have added to the totality of knowledge and experience which now make the time ripe for a unifying idea. This unifying idea is be- ing supplied by the Friends of the United States of Latin America, which has frankly dedicated its first efforts to the proposition that there should be a po- litical union of all the Central American Republics, based on a sound economic and social development of a region which can function as an economic unit once the physical limitation of jungles and swamps can be mastered. Mr. Speaker, we all know that our Government has officially adopted a long-range policy which is friendly to- ward the technical and economic prog- ress of other lands. In the now famous fourth point of his inaugural address in 1949 President Truman called for the adoption of a bold new program of tech- nical assistance for the underdeveloped areas of the world. The Congress Started this idea on its way toward prac- tical realization in the Foreign Economic Assistance Act of 1950. But Govern- ment can only go so far and so fast. Latin-American nations are already showing signs of impatience over the time it is taking to complete officially sponsored plans for a program of eco- nomic development. There is, further- more, the danger that in the shuffle of our 2wn rearmament program we may again let out official devotion to the “good neighbor” idca slide downhill as we did a few years ago, at the end of World War II. The Friends of the United States of Latin America is still] ahead of us in pointing the way to the kind of political stability which economic progress makes possible. This effort has already started producing concrete results without wait- ing for someone to draw a blueprint of the entire operation by which economic and political union of the states of Cen- tral America can be achieved. At first an arrangement was begun for the exchange of university students at the graduate level between universities in the United States and Central Amer- ica. It was hoped that the idea might take hold over the years on a large enough scale to provide a reserve of knowledge and understanding cutting across national boundaries. Meanwhile another plan was started, looking to- ward the vocational training of me- chanics and craftsmen to maintain and repair mechanical equipment. The most recent evidence of the work of the FUSLA organization is a project now being carried out in Nashville, Tennessee, by a group of educators and civic leaders who have found themselves drawn into an experiment in interna- tional cooperation by the sheer logic of an idea. A few weeks ago a group of 18 Latin-American students arrived in Nashville, 3 from each of the six Cen- tral American Republics. Two others from Mexico also joined the group. These young men arrived to start a course of training in the maintenance and repair of agricultural and road- building machinery, including gasoline and diesel engines, welding, and the other basic techniques on which the eco- nomic development of their countries must ultimately rest. This training 1s being provided at the level needed for real help to the countries from which these students come. When they com- plete their training and return home to teach others what they have learned, the members of this nuclear group, and their successors over the years, may ul- timately spark an industrial revolution that will make constant political revolu- tion a thing of the past. The trainees have the opportunity to learn about the United States at first-hand, without the intervention of Government agencies, and without any attempt at indoctrina- tion. Here is a privately operated ven- ture which may well point the way to an effective Point 4 program for Cen- tral America, starting literally from the grass roots. The Nashville project has been under- taken by H. O. Balls, president of the Nashville Auto-Diesel School, who of- fered to provide free scholarships and financial assistance almost immediately after he caught the spirit of the FUSLA idea. A citizens’ committee has taken hold both to see that the students are provided with opportunities to learn about the community around them and also to see that they are protected from overentertainment or lionizing. This committee is headed by Dr. Harvie Branscomb, chancelor of Vanderbilt University, and includes outstanding civic and business leaders of Nashville. Mr. Speaker, there is much more to the story, but what I have already cov- A1307 ered is enough to indicate the importance of this work. The men who formed the Friends of the United States of Latin America are not unaware of the obstacles which might make it difficult to achieve their objective. They realize that among the 20 republics which make up Latin America are both large and small states, industrialized and backward countries. They know that there are racial prob- lems, age-long disputes, and prejudices, economic rivalries, and even in some cases simple obstinacy based on the his- tory of past wars and inter-American plundering. However, the advisory council which Mr. Posner has managed to assemble includes men with enough vision to see beyond the obstacles of the moment. This group consists of Capt. Colén Eloy Alfaro, for many years Am- bassador of Ecuador to the United States and almost every other country of the Western Hemisphere; Prof. Richard Behrendt, director of the inter-Ameri- can studies at Colgate University; Hon- orable Carlos Davila, former President of Chile and distinguished author; Prof. Harold E. Davis, director of the division of inter-American studies at the Ameri- can University; Dr. Paul F. Douglass, president of the American University; Prof. A. L. Gitlow, professor of economics at New York University; Philip Leonard Green, outstanding writer and authority on Latin American affairs; and Lt, Comadr. Alvin E. Moore, retired, exponent of a plan for world government. The idea of these men is not to meet the obstacles head on, by becoming em- broiled in all of the historical tag ends left from a century and more of frustra- tions and mismanagement, but to try instead the cultivation of the Central American garden. They started first ar- ranging exchanges of graduate students, They have now moved to a more imme- diately practical stage of technical train- ing for economic development work. They are encouraging the development of regional schools of vocational train- ing throughout Central America for the furtherance of economic and social in- tegration, along with road building, and other integrating public works. All of this is to be done on a voluntary basis so that it need not be accepted by any government or individual in Latin Amer- ica who does not agree. But so far no one has disagreed. It is one of the heart- ening things about a great idea that so few people disagree with it. ° Mr. Speaker, efforts in this ficld are all too few; and particularly, efforts which try to point beyond the immediate details of health centers, experiment sta- tions, schools, and the like, to a unifying idea such as this one for regional inte- gration both economic and political. We have heard of many inspiring proj- ects for human betterment and interna- tional cooperation, but up to this time J have heard of no other similar attempt to get to the roots of the problems of Latin American unity. Our Government should welcome and encourage such activities on the part of public-spirited private groups, and we should hope that more people will join in contributing services and funda to support an organization like the Friends of the United States of Latin America,
A1308 India Emergency Assistance Act of 1951 EXTENSION OF REMARKS or HON. SID SIMPSON OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. SIMPSON of Illinois. Mr. Speak- er, when the gift of grain for India was proposed, our office sent for any avail- able information on Indian famines from the Library of Congress. The legislative reference service of the Library of Con- gress sent us the History and Economics of Indian Famines, by A. Loveday, B. A,, late scholar of Peterhouse, Cumbridge. The same was published in London by G. Bell & Sons, Ltd., in 1914. Besides the introduction it contains a chapter on famines previous to the English predom- inance, that is previous to 1770. Chapter JI is on famines and the East Indian Company. Chapter ITI contains famines from the abolition of the East India Company to the present day, namely, 1907, and their summaries. Chapter IV contains relief organization. Chapter V contains protective measures and wider economic problems. “Appendix A” of this interesting book contains the date of the famine or flood, the locality, the state, the reference and the remarks. The first reference to any famine in this appendix which was merely a legend, carries the date of 297 circa. The next one was 445 circa with the date not defl- nitely known. Starting with the year 917, I have sep- arately attached a sheet as outlined un- der appendix A. This sheet contains from the year 917 to 1907, approximately 102 famines or floods. The years involv- ed total 980. This shows an average maj- or flood or drought every 9 years for al- most 1,000 years. Having always heard of droughts, floods and locust swarms in India, I won- dered who supplied them grain prior to the request that the United States sup- ply it to the extent of $190,000,000 or 9,000,000 long tons or 336,000,000 bush- els. To maintain the rationing system, even at a level below last year’s the Uiov- ernment of India finds that it will have to import close to 6,000,000 tons in 1951. India is procuring almost 4,000,000 tons of this total through the use of its own foreign-cxcHange resources, and the $190,000,000 worth or the remaining 2,000,000 tons, about 75,000,000 bushels, would have to come in a large measure if not entirely from the United States, I was also curious to know just how a foreign government requested such help or assistance as was asked of the United States. I found that M. K. Kir. palani, Chargé d'Affaires ad interim of the Embassy of India in Washington, on February 8, 1951, transmitted a let. ter to Mr. Acheson, the Secretary of State. Mr. Kirpalani in his letter ex- plained under instructions from the Government of India— I have the honor to communicate to you the following: ° s s e s 2. On account of a succession of natural calamities cereal production in India in 1951 is expected to fall short by at least 6,500,000 tons as compared with 1950. Al- though vigorous attempts have been made and are being made to increase production, floods made worse by earthquake and sub- sequent drought have seriously handicapped efforts. 8. In 1950, 8,000,000 tons of cereals— 2,100,000 tons from imports and 900,000 tons from government stocks—were distributed in addition to the grain available within the country. In spite of this, rationing broke down in many parts of India and the ration had to be reduced to below 12 ounces in most states for a long period. Now the ra- tion has had to be temporarily reduced to nine ounces all over the country. 4. Cereals form the principal part of the diet of the people and 12 ounces provides only 1,200 calories. It is estimated that about 9,900,000 tons of grain will be neces- sary to enuble government to meet its ra- tion obhgations in 1951. Out of this quan- tity approximately 3,500,000 tons is likely to be procured within the country. Govern- ment of India is arranging to import 4,000,- 000 tons of grain in 1961, which is all that can bo paid for with available funds. This leaves a requirement of 2,400,000 tons un- covered. 6. Government of India is facing an ex- ceedingly dificult food situation. Semi- famine conditions prevail {n many areas and it is apprehended that unless a major part of the deficit is made good by large imports, acute famine conditions are likely to develop later in the year and the situation may well get out of hand. 6. In accordance with the representations that have already been made to you by the Ambassador on December 16, 1950, the Gov- ernment of India requests the United States Government to give them ad hoc assistance during 1951 to obtain 2,000,000 tons of food grains and would greatly appreciate if the grain be supplied on special and easy terms. I avail myself of the opportunity to convey to you, Mr. Secretary, the assurances of my highest consideration M. K. Ermparant, Chargé d’Affaires Ad Intertm, F.ease note in the second paragraph, Mr. Kirpalani stated that on account of a succession of natural calamities cereal production in India in 1951 is ex- pected to fall short by at least 5,500,000 tons as compared with 1950. Please note he states that it is expected to fall Short. He did not say that it has. In the introduction of Indian Famines, the book which I mentioned previously, on page 4, it states: The frequency and extent of famines in India should be no cause for surprise. That they are not more extended in area and more tragic in their effects is due on the one hand to the size, and on the other to the varying elevations of that country. It further states: History gives no example of a drought ex- tending over the whole of India; and mete- orologists declare such an event impossible, While this book was published in 1914, the elevations in India, no doubt, except for erosion, are the same. I helieve the climatic conditions remain the same, also. Paragraph 4 of Mr. Kirpalani’s letter states that cereals form the principal part of the diet of the people and 12 ounces provides only 1,200 calories. Na- turally, 1,200 calories is not very much. The same paragraph estimates that about 9,900,000 tons of grain will be necessary to enable the Government to meet its ration obligations in 1951, and APPENDIX TO THE CONGRESSIONAL RECORD out of this quantity approximately 3,500,- 000 tons is likely to be procured within the country and that the Indian Govern- ment is arranging to import 4,000,000 tons of grain in 1951, which is all that can be paid for with available funds. This leaves a requirement of 2,400,000 tons uncovered. Paragraph 5 states that India is facing an exceedingly difficult food situation. Presumably this is another of their every-9-year famines for approximately the last 1,000 years. The paragraph fur- ther states that semifamine conditions prevail in many areas, and unless the deficit is made up by imports that acute famine conditions are likely to develop later in the year, and the situation may get out of hand. The droughts and sand storms in the Umited States in the thirties got out of hand, but we survived. Please note that in paragraph 5, Mr. Kirpalani states that the situation may get out of hand. In paragraph 6, Mr. Kirpalani states that the Government of India requests the United States Government to give them ad hoc assistance during 1951 to obtain 2,000,000 tons of food grains and would greatly appreciate it if the grain could be supplied on special and easy terms. He did not request a gift. Next, I was curious to know or to read the message asking the Congress to pro- vide assistance to India to meet the re- quest as outlined in Mr. Kirpalanit’s let- ter. It is contained in House Document No. 56, Eighty-second Congress, first ses- sion, The recommendation was made by the executive department to comply with the request of the Indian Govern- ment. The request of the Congress was not made on a basis of special and easy terms. It was made on what is called a grant which actually means a eift, and remember Mr. Kirpalani’s letter asked for easy terms. The recommendation to the Congress by the executive depart- ment was, in part: We would also expect the Government of India to do all it can to expand supplies and otherwise to lessen the danger from crop shortages in the future. I wish to remind you that under the Indian Famines book from the Li- brary of Congress, the record shows that they have had a famine every 9 years for 1,000 years. The message further stated that— Shipments must begin by April. Mr. Kirpalani’s letter stated that the 1951 crop is expected to fall short, and the Indian famines authority from which I have quoted, states that it is possible to raise three crops a year in India. How proud of the United States American citizens should be, supporting a Republic such as ours, a nation of 150,000,000 people made up of immi- grants from all countries of the world, 175 years old, being able under the two- party system to be in such a position that a nation of 350,000,000 souls and over 1,000 years old would request help even on a pay-back basis as outlined by Mr. Kirpalani. Again referring to paragraph 6 of Mr. Kirpalant's letter whorein he asks that
APPENDIX TO THE CONGRESSIONAL RECORD the grain be supplied on spe- +l and easy terms, it seems to me that we are not even complying or attempting to comply with the request. A Christian gift of $190,000,000 worth of grain to a starving nation is one thing; but we are not doing that as evidenced by the executive com- munication and Secretary Acheson's statement before the Foreign Affairs Committee, The grain is proposed to be given to the Government of India to be put in with that part of their shortage which they have purchased and are pay- ing for from Communist China, Canada, and Australia. These countnes have sold them their part while our part was asked for on easy terms. Again, our part of the grain is not to be given to starv- ing people of India but to be placed in the hands of the Indian Government again with that part that they are agree- ing to pay for and then sold by the In- dian Government to their own starving people. It is proposed by the executive depart- ment of the United States Government that the funds derived from the grain from the United States be used to further the economy of the Indian Government which, with Pakistan, was given its free- dom by England in 1947. If 1t is to be done on a humane basis to save the lives of starving people on their every 9-year famine average, why should it be sold to them. Our office is reliably informed that last year India produced $349,000,000 worth of manga- nese, mica, jute, cyamite, and monazite sands used industrially and that the United States purchased $101,000,000 worth, not quite one-third of the total. The only conclusion I can reach after reasonably studying the matter is that India wants food grains from the United States as part of a total on easy terms and that the executive department has asked the Congress to authorize it on a gift basis. The Indian Government in turn is to sell it to her people should the 1951 crop condition prove a failure or a partial failure. There is no pro- posal of any strategic material which we Date Locality 1383 Lo. eee eee --------- Hindustan ..222.... - 6 WL... - .-{ Deccan and Burhenpur VaAW - Hombay 5 A ens EL 6 () 5) ne bell ‘and Siwahk district... -- Magadha__... 222. ------- Ihashour......- wae eee ee eee eee N can use to be taken in exchange either now or at a future date for stockpiling. The Pakistan League of America, Inc., mailed to all Members of the Eighty~ second Congress a very interesting four- page pamphlet. The religion of Pakis- tan is Mohammedanism and that of India, Hinduism. In 1947 when the two nations were formed, millions of Mo- hammedans migrated from India to Pakistan and millions of Hindus in Pak- istan migrated to India. The testimony before the Foreign Affairs Committee was to the effect that they left their crops standing in the fields, their reli- gious immigration being made in such haste. The Pakistan memo states: 1. It (India) refused to buy 600,000 tons of food grains which Pakistan offered to sell below world prices. 2 It reduced its purchases of food grains from the United States from $63,000,000 in 1948 to $24,400,000 in 1950. It further states that on the other hand it stepped up its purchases of raw cotton from the United States from $4,- 000,000 in 1948 to $68,000,000 in 1950, and that this was because India was re- fusing to buy Pakistan cotton in an at- tempt to cripple Pakistan’s economy. The Pakistan pamphlet further states that India declined to buy its normal ofttake of raw jute from Pakistan, thus losing in terms of manufactured jute goods approximately $100,000,000 in dol- lar exchange which it could have apphed to food purchases in the United States. If this had been done, this would have made India’s request for easier terms easier. The pamphlet continues as follows: It there is famine in India today, it has not been brought about by natural calami- ties It is the direct and inevitable result of the Government of Indiu's plans to break Pakistan’s economy. India has been waging economic war against Pakistan since Srp- tember 1949. In an attempt to force Pakis~- tan to devalue her currency, India stopped all trade with Pakistan from that date. Again remember that these two na- tions were established in 1947 when England gave India its freedom. Btuto Referenca N Dutt, Wist , Ibid , volo yu, p57. N | Stein’s Rajat, bh, v., VV 27 N N Eth, N Iinp N vol fi, p. SIT... N Dow, vol i, p $5; Briggs, vol. i, p. 10s. .... Elilot, va Vill, p 86 2c... Elliot, Tol mM, p 140, vol vi, p. 47. _ A1309 Why should the United States get in- volved in foreign, religious controver- sies? Will India’s request for $190,000,000 worth of grain on easy terms stop fam- ines, floods, pestilence, and _ locust swarms which have occurred every 9 years for 1,000 years? If I believed it would, the $190,000,000 worth of grain should be given them as a gift. I do not believe it will stop it for 1 minute, The Indian peninsula stretching as it does from the eighth to the thirty-eighth degree of latitude having innumerable variations in climate, political, social, and racial conditions, is not going to change in 1951 from what has been tak- ing place for the last 1,000 years. Mon- s00n storms beyond control occur in In- dia. With a 6-month rainy season and a six-month dry season, either floods or droughts can cause the trouble. The autumn crops in India are reaped in September and December, and the dry crops reaped in March and April. The $190,000,000 worth of grain for India according to Secretary Acheson is not included in the seventy-one billion- dollar-plus budget—1951-52—of the United States. How far can the United States go with its resources on such a budget and such an additional request of $190,000,000 which is gone forever? Our office receives daily many letters protesting unnecessary Federal spend- ing. This legislation as proposed in the form of a gift is just that. If this pro- posal were changed whereby the United States might obtain some strategic ma- terial in exchange for grain, I might have a different viewpoint. I do not believe this country can afford this authorization on a gift basis. I do not believe it should, as India has not asked for it under such conditions. For my part I will not support it. Everyone knows what u farce and loss the China programs proved to be and which, as one Member of Congress, I had no part of. I will not be a party to a rep- etition of it in India. Remarks 1 This is merely a legend ..| The date ts not definitely known, -| Grew mortaliiv, no apparent steps taken to Tutligate distress, In many parts of tha world; accompanied by Joodry plague, Legend that it lasted 12 years, “Next year such rain fell as but few people could remember" The exact date of this famine is not ascer- tainable, probably emea 1305 People migrated to Bengal, also plague. Reported to have lasted 12 years, The Sultan prayed (i 1124), aud rain came, No gtain sown for 2 years. .-| All relief prevented by wars _. | Caused partly by war, no relief, -{| Lasted 6 mouths, enused hy erop burning, Same cause then 2 years’ drought. Spread over the east coust of the Red Sea. People fed on acacla seeds und hides of cattle, Foote fad on each other, No tediet, Liberal relief and cooked food, Also a pestilence. Reported all over Asia; also epparcutly plugue, lasted 3 or 4 yuurs. ale spwarde plague Between 1290 and 1317.....- Delhi country......-------------- eee ee eee N Briggs, vol. i, p. 556, ef. Elphinstone, 300_..- VHS WL Lee ee eee ef eee do N Brigrs, vol 1, » 428, Elliot, vol. aii, pp. N Bee ie O20 stwoon TST 4 BITS f rivet, Vol iv, p 457 2.0.22. e eee hae n ESST and 1363 wanes N Fth., p 7. Reott. vol |, p. 56_. - Wis... N Briggs, vol. fi, p. 405, Scott, vol, tp. 102... L71-72 N Bri¢es, vol. i, Dp. 408-4... 2. eee eee N Flllut, vol vi, p - N Haber’ ‘s Mem. Whee De Ol. weeeee- N do cence en ene eeene eeeeeeee N WA. “Coromandel Coast _ N Investiga. Portug.. ‘vol. xvi, D. 270... Mid G5... ee. e eee eee Delhi, Agta, and Bajana districts --| N Elllut, vol. v, p. 400... W596. ee ence ence eee oe Hindustan... 2. N Eliot, vol. vi, p. 21. . 1574. Delhi country, N Elliot, vol vi, p, 207. 1577... -} Kkuteh.. 22.22.22. N Eth, p 26.22. 1592 etre -| Sholapur district N Heott, vol 1, pp 314 and 360. 154-88. Central India, Hindustan... N Elliot, vol, vi, pp, 04, 198....2...-2-0--.--- + 1813-18... eee nee Punjab 2. 0.2.2 cen ew eee eww eee eee ene en eee N Eliot, vol 2 | 5 (1) ee Funan Ahmedabad....-.----..----------- N Eth, p. $02. ee eee eee eee e enn e ene en en enone Not severe, and stores proved sufficient.
Lacality een Wah Ww ST) nn Dec ath... cseeecee 2 ne cen eeewaneee eareeee 1620-30... ..0. ae Abinedabad. Autangail's 2.02... eek pane cuca eeuen N Bow, a iii, pp, 128-9, 341; Hlllot, vol, vit, pp 24-5, 263, 245-7, ete., vide text, Eth., pp 37 86Q.--2..---eneceeenennmneneenn- Elhot, vol. vil, pp. 244-8, 263, Dow, val. in, pp 510, 341, Scott, vol, il, | p. 47; ‘Eth. Remarks Dogs and mon eaten. Alto pent enor, spread over nearly the whole hah Johan’s dominions, _Cxtennive rehef beh more extensive mortali ‘ti Lasted several years, qruin nported; also plague of locusts and cn Evidence only shows Bengal’ and'T Bombuy ab definitely irnmune, vide text 1076 77 ... | Hyderabad, especially Culburga district....| N | Mackenzie MS8., vol. vi, pp, 33-35, Scott, | Apparently caused in the first place by vorreeeeecesees vol, u, p. 47 excessive rains. Ws eeue a eee | Docoan and Hyderabad .......-.2.-------- N | Eluet, Nol vin, p BIR. . «| War prevented avy relief. Via G4 ------ -aneeasee Bombay nt on i N Rott, val ¥. pp, 12 tid Prices rose to 32 times the normal. - eve We le eo onto. ne N th,p 40 2. 2... nn The eatent of this famine is not known, MW to oN Baird Snuth. ..-. 1739, - do. - --| N Rentt, vol, fl, pp 280-211. Algo pestilence. wa Bombey ditties nec N | Bite ei te aa sases oss Funke! food ete th Kut ot lao gem TOU ck caw wwe wwn ane wenn | BOUIDNY GIUTICE. 2. ene ee ne eee ween ee ee eee U 0 PUL e. eee eee 2 eee a6 secwwnne , l= Ch nes «-.-.| Bombuy district... . Pr ant ove other Gavia. 5 an ante cemeneeenener aearecenscerenee | N B Orie afteport, padi, Hunter, Rural | Vide teat. nga | nn 0, ae Madras Manual of Admin, vol. f, p 208 ...| Cansed partly by Hyder Ali's devastations, VW. nee wee . omy and Madrap districts Hyder All's Eth, p. 7... en eee ee eee eee 2146 years, caused partly by burning of cropa. coun Bengal, Bollary, U P., Kashmir, and Raj- Orksa Report, pasam_. .| E I. Co show greater energy. aduth Mohrntta coun Kutch, O01 witli and Rujputana Upper Bind........-..- try Bombay and in Hyderubud, Gujarnt, N, W. Province, "Romboy district, Central idespread, «specially Carnatic._....---... Hombay, Agra, and Madras districts N. W. P., Rajputana, Deccan, Broach Decoun aud Boutbay, Madras. Sholapur, N Madras. ...... Cu, arnt, Ahandish, N. Deccan, and parts Belly, “and 8 Madtas and Deccan, Rajpu- Eth, Vido text, numerous ..... waneene Madras Manual of Admin., vol. Eth, p. 70, Buird Smith, ete.. Eth, p 1 Admin , op cit. Eth, p i, ‘varlous Comms , ete. op Eth, pp 33, 74, 126, ot¢., vido text.......-.. Eth, pp. a, 95, 194 137, Madras Manual Eth, p 101, B South, various Comms, ete. B. Smith; Fth., p. 8, various Comma,, ote. -| Caused largely by locusts In Dharwar women and children sold = Corn imported frum Bengal Vide Wat ee wewwcnees 1, p. 208, Loenst¢ In Bombay, pestilence in Abmeda- bad, vide In Bivach for ry years execsaive rainfall, panic occuts; migiation, Amerrs throws open Government granaries Biltish Government appoints a committee of wells and tanks also relief, It was nut acute ju Madras, Vide text, Vido teat In Cujarat partly due to locusts, Nowhere very severe In Thana and Kaluba, followed hy excessive tana, at Bombay district vadtiy tn 1854, culmimating ina hurienne. Parts of N’ 4 W- 2, Punjob and Rajputana B Smith, ete... _| Vide text. Firat futnine after abolition of and Kuteb, am Deccan, neg cnenenee ee eeee ene Kth.,, p @.. --.. .| Not very “intense, Opa bam, Qanjam, Bellary, Hydera- Orbea) Reyori, ete... ee wee nee eeee nen ee eee Vide text. Failure in Orlsya fn relief or gaunt wre NW P Xp *unjab, Gujarat, parts of Cen- 1880 Comin , CC.....2-- eee eee eewcncerene Vide text ‘Terrible mortality In Rajputana. ‘thal Piov., N Peeenn, Rajyputang, Hrs relief better organized, but finanelul strain WRV8-T4.. ee ee oe eee] Behar, Bundelkhand, 8,W Prov........... 1880 Comm , @t0.....0-- ween ceneeeeeens oe The “Panic Famine ” Usih-7R_ Muctras Homhay, Mysore, and Hyderabad. w-- doe. a“ Vide tot, 1N77-78. UP, Rast 0 Lleeeeeee do. Do ‘THAH-RU)_ «| s Ganka, Native Orissa States - -- 1808, ete Lelie tov late. 18-07, Proviners, Bengal, Bombay, C ---.0.... Vide text, Provines, Berar, Madras,’ Delhi distuct, Pats & Indl, Hyderabad, N. WW. Rajputana +18) Se C Provinee, Hisser dist, Bombay, Hernr, |-..... 1000, ete. ..-.---.---- eee eee sanentencecenees Vide text Tho greatest famine hutory Hyder abad, Ragputina (and Ajouie), ieeords Central India, DOB WOO ee Buroda, Kuteh, jig lati i Native states [ N.W J... Ce. eee ee teen cee ween ene ceeeeeee Tho drought aflected also, less severely, of C, Province, 3 Punjab, Bengal, Agta, 8S. Madtas, Della di trtet. 19m)? -- Cujuat oe ween ee . Repert on relief. . TC) Darbhanga dNtet LL lo - +. daw. Extensive floods, Wier .. United Vrovinces. 2. 22. 2. - | Bo fe 0 ..----. Extraordinary suceess in decentralized relief, — wee. Immediate Hearings on Railroad Retire- ment Legislation Are Necessary To Re- lieve the Plight of Retired Railroaders or Their Survivors REMARKS or HON. JAMES E. VAN ZANDT OF PENNSYLVANIA IN TIE MOUS! OF REPRESENTATIVES Monday, March 12, 1951 Mr. VAN ZANDT. Mr. Speaker, early in January T introduced three bills all of them designed to liberalize provisions of the Railroad Retirement Act and to increase present benefits. These meas- ures and scores of similar bills were pending in the Eighty-first Congress, be- ing introduced by Members of Congress Nike myself who represent heavily popu- lated railroad districts where retired railroaders and their dependents are near starvation levels because of the in- adcquate benefits received under the Railroad Retirement Act. On January 22, 1951, I wrote to Hon. Rosert Crosser, chairman of the House Interstate and Foreign Commerce Com- mittee, and renewed my pleas that I made to him over a period of the last 2 years that action be scheduled on rail- road retirement legislation. My letter to Chairman Crosser was as follows: 7 1 Ropert Crosssr, “hairman, House Interstate and Foreign Commerce Committee, House of Representatives, Washington, D C. Dear CaamrMan Crosskr: As you Know, I represent a heavily populated railroad dis- trict in Pennsylvania and for the past 2 years I have made a sincere effort to get action on amendments to the Rallroad Re- tirement Act that were pending before your committee, With the convening of the Eighty-socond Congress and with the cost of living still skyrocketing, I have introduced H. R. 1404, 1405, and 1406, designed tu liberalize the provisions of existing law and to increase benefits to not only annuitants and pen- sloners, but also to widows and other sur- vivors, According to the Railrond Retirement Board, the average age of the disabled and retired annuitant is 702 years and the pen- sicner 819 years; while the average axe of the widow is 728 years The average monthly benefit received by the annuitant 16 88281 monthly, the pensioner $70.60 montbly, and the widow 629.59 monthly. According to the Bureau of Labor Statistics ot the United States Department of Labor, the cost of living as of November 16, 1950, has increased 71 percent over the cost of living in 1937. For an illustration, food has increased $9 percent; wearing apparel &9.7 percent; rent 24.3 percent; fuel, electricity, and so forth 43.4 percant; house-furnishings 94 percent and miscellaneous 58.9 percent, While these increases have tak-n place since
APPENDIX TO THE CONGRESSIONAL RECORD 1937, the only percentage of increase in re« tirement benefits was 20 percent granted by the Eightieth Congress. Tam fully familiar with the actuarial stud- jes made from time to time and while the retirement fund was said to be unable to stand an increase in benefits the past 2 years, it is my opinion that the fund is ca- pable of such an increase when you take into consideration the increased income of tho fund resulting from increased wages and high employment in the railroad industry. You may not agree with me when I say that I have retired employees and survivors of deceased employees in my Congressional District that are actually hungry and Hving under conditions that you and I would find repugnant to the American way of life. These people are the victims of a frozen in- come over which they have no control, Con- gress, a8 custodian of the retirement fund, is obligated to provide relief to these people by immediately considering legislation that will remedy their plight. There is general sentiment in railroad cir- cles that the fund will stand an increase in benefits and we are guilty of gross neglect if we do not do something immediately to re- lieve the distress of annultants, pensioners, and survivors under the Railroad Retirement Act, I sincerely hope that you will give serious and favorable consideration to my plea for early action on pending amendments to the Ratlroad Retirement Act. With kindest personal regards, I am Sincerely, JAMES E. VAN ZANDT. JANUARY 22, 1951. On February 26, Chairman CRrOSSER replied to my letter by advising “careful studies are now being made and I expect a report thereon very shortly.” In other words, Mr. Speaker, it is the same old story that studies are being made despite the fact that we were given the samc excuse in 1949 and 1950. While these so-called studies are under way the cost of living has skyrocketed to an all- time high and the letters I am receiving from recipients of railroad retirement benefits reveal the widespread misery caused by the refusal for over 2 years in scheduling action on amendments to the Railroad Retirement Act. I have talked with other Members of Congress from railroad districts, and they inform me that they too are receiving pathetic let- ters urging action on railroad retire- ment legislation. How would any of us feel if forced to live on one meal a day? Well, that is the situation with thousands of retired railroaders and their dependents who are trying to exist on the present scale of retirement benefits. There is something radically wrong either with the Railroad Retirement Act or the administration of it. Instead of the age-old excuse that studies are be- ing made, let Congress get busy with hearings on the subject. We are the representatives of the people and they have a right to expect action from us. I want to be fair in my request that prompt action be taken and that hear- ings be held on railroad-retirement legis- lation, yet I do not propose to be charged with evading my responsibility to the re- tired railrcaders or their survivors. The Stars and Stripes Forever EXTENSION OF REMARKS or HON. GORDON L. McDONOUGH OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Wednesday, March 7, 1951 Mr. McDONOUGH. Mr. Speaker, in recent months there has been evidence of a growing movement in this country to relegate the flag of the United States to a secondary position, and to implant the flag of the United Nations in its stead. Certain groups have been active in obtaining special recognition for the United Nations flag, and near riots oc- curred in some localities where patriotic citizens vigorously protested the display of the United Nations flag unaccom- panied by the flag of the United States. It is high time that appropriate action is taken by the Congress to protect the flag of the United States of Amcrica and to prevent the use of any other flag in its place. For this purpose I have intro- duced House Joint Resolution 167 which would establish a rule that no foreign national or supranational flag shall be publicly displayed unless it is accom- panied by the flag of the United States. And to stimulate greater interest in the proper and frequent display of our Stars and Stripes, I have also introduced House Resolution 64 to encourage all citizens to display our flag whenever pos- sible. In the United States today there is a growing need for the spirit of patriotism, devotion to country, and willingness to sacrifice for those ideals which were the flaming torch that lighted the way of our valiant ancestors who bore arms at Bunker Hill and stood steadfast with Washington at Valley Forge. Though outnumbered many times, without provisions, without money, ana without adequate arms, those patriots of the Revolution were willing to die for the freedom they cherished, and fought the might of Britain to win the blessings of liberty which have been the birthright of Americans for more than 160 years. Today we do not have the dedication to purpose and ideals which the founders of our Nation possessed. And today our beloved Nation is in danger. Let us make no mistake about that. The Com- munist threat throughout the world con- tinues unabated, changing direction continually and moving constantly from a position of threatening belligerence to one of soft-spoken pleas for peace. But whatever front is presented to the world at large, the fixed purpose of the Com- munists to undermine the United States of America, divide the western alliance, and destroy our Nation through internal collapse or through open aggression, re- mains, KEEP STRONG YOUR FAITH IN THE UNITED BTATES We need today in the United States a rebirth of the patriotic spirit of 1776 which is symbolized by the American A1311 flag. We need the faith in God and in right that brought liberty and estab- lished a free nation on our shores. We need a rededication of every American citizen to the purposes and ideals upon which this Nation was founded, and we must uproot and destroy treason and communism wherever it is found, During recent years a move has ap- peared in our land to convince Americans that patriotic pride in America is isola- tionist, that it is wrong to believe the United States the greatest and finest country in the world, the only land Americans are willing to fight for and die for, How long must this internationalist policy which is so dear to the administra- tion continue before we awake to our danger, and call for a return to good old- fashioned American patriotism. It is true we are no longer in the horse and buggy days, but honest patriotism taught by parents and teachers to the youth of our Nation, the flying of the Red, White, and Blue, and the celebration of the Fourth of July in the town squares throughout the land brought forth Jackson, Grant, and Lincoln, not Cop- lon, Remington, and Alger Hiss. We Americans should wake up to the fact that we must look out for the inter- ests of our Nation and our people while we pour out our resources to save the rest of the world and risk the loss of our own freedoms and our own system of free en- terprise. We can in the spirit of broth- erhood and cooperation, and with the honest desire to follow the Christian principle of helping our neighbors, do what we can to help them to raise their standards of living and strengthen their defenses against the common enemy. But we cannot look out for the inter- ests of all the rest of the world at the ex- pense of our own Nation and our own people. We cannot risk economic col- lapse and the loss of our own freedom. We cannot adopt a policy of America last while no other Nation in the world has evidenced any willingness to relin- quish its own self-interests in behalf of the United States. The recent campaign sponsored by the administration through the Department of Agriculture to fly the flag of the United Nations in every city, town and village in the country, was an example of the cam- paign to undermine and destroy Ameri- can patriotism. KEEP OUR GLORIOUS FLAG FLYING The proud Stars and Stripes which was adopted as our national flag on June 14, 1777, has become a symbol of liberty and freedom throughout the world. And our fiag is the only flag in the world that 4s never dipped to any individual, not even to the President. Americans have loved and respected our flag since it first unfurled in the breeze. It has moved westward across the Nation with our pioneers. It has accompanied our troops into battle on Jand and on sea. It is far more to a loyal American than bits of bunting stitched into a design, it is a hallowed emblem of the spirit of America.
Al1512 I have long recognized the need for a revival of honest American patriotism in our land as the best answer to those ene- mies of democracy who would spread the insidious lies of communism, And I be- Heve one of the best ways we can foster a resurge of American spirit throughout the United States is through greater dis- play of Old Glory and assurance that no other flag shall usurp the place of honor which should be accorded in this Nation to our own flag. For this purpose I have introduced House Resolution 64 and House Joint Resolution 167, and these resolutions, if adopted hy Congress, would spark a cam- paign to keep the flag flying on high from every flagpole in the land, a banner of hope and freedom, a symbol of national unity and faith in the future of the United States of America. As forcefully expressed by the Ameri- can poet, Henry Holcomb Bennett: The colors before us fly; But more than the flag is passing by. Sea fights and land fights, grim and great, Fought to make and to save the state; Weary marches and sinking ships, Cheers of victory on dying lips. Days of plenty and days of peace; March of a strong land’s swift increase, Equal justice, right and law, Stately honor and reverend awe. Sign of # nation, great and strong, To ward her people from toreign wrong, Pride and glory and honor- ~all Live in the colors to stund or fall, ee Congressional Committee Doulis Reliability of CASBO EXTENSION OF REMARKS OF HON. FRANK BUCHANAN OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. BUCHANAN. Mr. Spenker, under leave to extend my remarks in the Rec- orp, I include the following article from the March 1951 issue of the Nation’s Schools: CONGRESSIONAL CommMrtTTre DousTs RELIABILITY OF CASBO “The lady doth protest too much, me- thinks” Shakespeare put these words in the mouth of the Queen replying to Hamlet, but the same good counsel might appropriately he addressed to the organization that, identi- fies itself us the Conference of American Small Business Organizations (CASBO). Thia group is one of the 10 identified by the field secretary of the NEA Defense Com- migsion as agencies whose good intentions toward public education are doubted. It campatgus for permission to “cvaluato” text- books and supplementary material used in public schools, especially those dealing with American history and soctal sciences It publishes the Educational Reviewer, which it describes as “a quarterly review of educa- tional materials.” Since CASBO presumes to take over a func- tion that legally belongs to school boards— nainely, the evaluation of instructional ma- terials—it is inmiportant for achool adminis- trators to know that this organization has been the subject of w special study and re- port by the House of Representatives through its select committee on lobbying actiivties, under the chairmanship of Frank BUCHANAN of Pennsylvania. This House Report No. 3232 was ordered printed on December 26, 1950, and can now be obtained from ‘the United States Government Printing Office. Inasmuch as the Educational Reviewer has been plugged recently by Radio Commentator Fulton Lewis and has heen wholehcartedly endorsed in an editorial (January 29, 1950) in the Chicago Daily Tribune, friends of edu- cation really should read the full 73 page report. The Tribune maintains that “Every school truxtee in this country and every school administrator ought to subscribe to the Education! Reviewer.” It asserts that “the reviewers whose work appears in the periodical sre chiefly concerned with dis- covering the bias of textbook authors and exposing any propagandn which results from it,” and declares that ‘the learned reviewers are lidcrals in the old and respectable sense ot the word” A much different conclusion was reached by the congressional committee after its ex- tended ond thorough investigation. The report reads’ “CASBO makes a more ingenious contribu- tion to the encyclopedia of pressure tactics with the Educational Reviewer, ‘a quartelly review of educational materials’ published for CASBO’s committee on education. The Reviewer's avowed function is to examine textbooks from the point of view of their attachment to the principles of ‘personal liberty and economic Mberty,' and their free- dom from ‘concealcd theories of collectivism * The Reviewer's consulting staff consists of Willism Starr Myers, professor emeritus of politics at Princeton University, Lewis H. Haney, journalist and professor of economics at New York University, and O. Glenn Saxon, professor of business administration at Yale University. “The general tone and viewpoint ot the textbook reviews found in the Educational Reviewer are difficult to describe briefly,” the congressional committee report continues. “A tew samples are set forth in the appendix to this report. * * * What matters, of course, is not that CASBO’s viewpoint ts either broad or narrow but that it has gone to such lengths to put it into operation The long-run aim of this program is obvious, and this is nothing less than the establishment of CASBO's philosophy as the standard of educational orthodoxy in the schools of the Nation. “We all agree, of course, that our text- books should be American, that they should not be the vehicle for the propagation of obnoxious doctrines. Yet the review of textbooks by self-appointed experts, espe- clally when undertaken under the aogis of an organization having a distinct legislative ax to grind, smacks too much of the book- burning orgies of Nuremberg to be accepted by thoughtful Americans without foreboding and alarm. It suggests, too, that the re- viewers profoundly distrust the integrity, good faith, and plain common senge of tho school boards and teachers of the country. It these educators are so utterly naive and untrained as to need help from a lobbying organization in selecting proper classroom materials, then our educational system has decayed beyond all help. This proposition we cannot accept, “For good or ill, CASBO is doing essentially what many other pressure groups are trying to do. These groups have long since recog- nized that lobbying of the traditional va- riety 1s not enough to insure lasting legisla- tive success. As @ consequence, they have entered upon a far-reaching and infinitely ambitious struggle to control public opinion. The effort to reach this opinion in the bud through dictation of educational materials is only one aspect of this struggle. Where- ever opinion is made there can the resource= APPENDIX TO THE CONGRESSIONAL RECORD ful pressure group be found. The implica- tions of this heavy and relentless assault on the Nation’s mind——by all the CASBO's, big and little, liberal and conservative—have yet to be fully realized.” Through tts editor, the Educational Re- viewer has demanded apology for certain ref- erences to it that were included in our Jan- uary article, They Sow Distrust, by Robert A. Skaife, field secretary for the National Edu- cational Association Defense Commission. The Nation's schools does not question the right of any group to organize for lobbying or propaganda purposes, nor do we defend wll that appears in textbooks. We agree that every citizen has the right to criticize the curriculum. It is not, however, the function of any self-appointed interest group to decide what shall or shall not be taught in the schools, It would be just as logical for a group of restaurant owners to decide what shall be taught 1n home economics courses, or for the amalgamation of ash haulers to de- termine the qualifications of the school cus- tcdian Such decisions are the responsibil- ity of the school board or the State legisla- ture, legally representing the interests of all the people Normally, the school board operates through its administrative and teaching stalf. If the board feela the need of additional or other expert advice, it is obligated to seek impartial and unprejudiced assistance. Whether the Educational Reviewer meets such qualifications must be answered tn the Heht of other significant findings of the House select committee, such as: “We have already indicated how CASBO both creates and then assesses the ‘delib- erated opinion’ of its membership" (p 6 of H Rept No 3232). “Both the language and the lay-out of these materials (CASBO letterheads) might give the impression that CASBO and its com- mittees are working under direct congres- sional sanction. The suggestion that CASBO is an adjunct of the United States Govern- ment 1s preposterous but is nevertheless put to frequent use in recruiting members and soliciting money” (p 7). “A closely related technique and one used frequently by CASBO is to disparage the honesty and effectivencss of competing small- business organizations” (p. 8). “Neither the Congress nor the public nor the small-business men of America can rely on CASBO's reports under the Lobbying Act asa full and accurate disclosure of its sources of financial support. For all its posturing as the spokesman for small business, CASBO has made devicus and sometimes successful efforts to secure big-business support for its activities” (p. 11). The final judgment of the House select committee as to whcther CASBO represents what it professes to be ig repeated here It comprises the last two paragraphs of the committee's report: “As for CASBO’s claim that it voices the ‘deliberated opinion’ of small business, its methods of ascertaining and formulating such opinion, sometimes through loaded questionnaires, prepared resolutions, and otherwise should make the Congress wary of any figures which CASBO offers as a measure of small-business opinion. “We repeat our conviction that it is proper and desirable that small business be repre- sented before Congress; but if such repre- sentation is by persons or groups whose single-minded attachment to the special in- terests of small business is open to question, the Congress cannot rely on their expressions as to the true needs and interests of small business. Such a situation can only work to the detriment of Congress, the public, and small business itself” (p. 23). It seems evident that Congress cannot rely upon CASBO as actually representing small business. Neither can the public schools rely upon it for unblased evaluation of textbooks.
APPENDIX TO THE CONGRESSIONAL RECORD Gifford Pinchot Naticnal Forest, American Shanzri-La EXTENSION OF REMARKS Or HON. HOMER D. ANGELL OF OREGON IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. ANGELL. Mr. Speaker, in the March issue of the magazine Eagle ap- pears an article by Richard L. Neuberger, an Oregon writer and member of the Oregon State Senate, entitled “Ameri- can Shangri-La,” This article is about one of our most picturesque national forests extending northward from the Columbia River into the State of Washington. Mr. Neu- berger’s article is both interesting and factual and worthy of wide reading. I am including it here as a part of my remarks: AMERICAN SHANGRI-LA (By Richard L. Neuberger) In the fast-changing Pacific Northwest, the Gifford Pinchot National Forest stands as ® monument to a great conservationist and the glory of nature. America's greatest missing-link scare occurred some years ago when a party of frightened prospectors stag- gered down to the Washington State city of Kelso with fearful tales of apes swinging from rope ladders in Mile-Deep Canyon be- low the glaciers of Mount St. Helens. This picturesque Columbia River commu- nity, the site of Eagle Aeilre No. 1505, was stirred by the episode. Soon the news hit the front pages of papers all over the Nation, Reporters arrived from almost everywhere, The far-off New York Times had a corre- spondent at the scene. Into the timbered wilderness the journalists trekked. They clambered over the threshold of fore bidding chasms, they gazed at heights of eternal snow and ice, and they struggled across strange deserts of pumice stone which would float in a bowl of soup. No gorilla or Neanderthal man did they see. Not even & Tarzan in leopard skin leaped among the fir trees. Yet, when the fruitless search for the miss- ing link ended, the reporters were unani~- mously agreed that the mission had been far from unsuccessful. How could it be considered a failure when they had looked on the grandest outdoor vistas any of them ever had experienced? This American Shangri-La then was known as the Columbia Navionsl Forest, 1,450,000 acres of wooded uplands and car- pet-like meadows in the southwestern corner of the State of Washington. Today, this realm of natural grandeur hes a brand new name, and thereby hangs a tale. The United States Forest Service wanted to honor the quiet man with handlebar mus~ taches who had been its founder and first chief. Biographies of ull the 152 national forests under the American flag were sent to the family of Gifford Pinchot, father of the conservation movement in this country. Forests in Pennsylvania, where Pinchot had served as Governor, instantly attiacted the forester’s redheaded widow. “Yes,” explains Cornelia Bryce Pinchot, “almost against my will, I found myself curiously drawn to another forest 3,000 miles away.” It finally was the solic choice of the Pinchot clan that the Columbia National Forest, where the white cones of dead vol- canos are rimmed with green hills and blue XCVII—App.-——~ 83 lakes, was more qualified than any other to pay tribute to the memory of the man who originally protected this wilderness from ax and saw and fire. By proclamation of Harry 8. Truman, the Gifford Pinchot National Forest now stretches northward from the Columbia River to the ramparts of Mount Rainier. Mention an outdoor pastime common to the temperate zone, and the Gifford Pinchot National Forest has it Sheep and cattle forage on the steep slopes that join the sagebrush of the Inland Km- pire. EIK and deer compete with domestic stock for grass. Cougars lope along the rim rock, and bears Inhabit the windfalls. Steel- head and rainbows lurk in a thousand mur- muring creeks, And the full-throated rivera are host in the spring and autumn to in- numerable thrashing king salmon, up from the salty Pacific to lay their eggs and die. More than 15,000 fishermen and at least 7,000 hunters plod through the dense reaches of the forest every year. Another 12,000 ad- venturers seek handholds on the precipitous peaks. A substantial number of these back- woods visitors are eagle brothers, for eagle cities surround the mountain citadel like a stockade Vancouver, Stevenson, and Goldendale guard the approaches to the Gifford Pinchot National Forest in the south. Kelso, Cen- tralia, and Chehalis greet its rangers and Hikers in the west. Below the meadows which fringe the forest on the east, sprawls bustling Yakima, orchard capital of the Northwest and headquarters of Aerie No, 239. Undoubtedly there would be eagle communities along the northern boundary of the forest, too, if it did not bump directly into the icefields of Rainier National Park. Even eagle brothers with empty creels and no deer for the larder come back to civiliza- tion in a pleasant mood. The grassy rugs of the Gifford Pinchot National Forest— ruge decorated with borders of frewood and Indian paintbrush—offer unparalleled camp grounds. The forage biushes against a horse's cinch strap. Cold springs dot the meadows. Al- pine fir grows in convenient clusters. A lake for a quick dip is invariably at hand. Steel- head soon sizzle in the pan, flavored with strips of bacon and garnished with a mound of hash-browns. The fish was filpped from water to skillet with one quick twist of the wrist. Overhead towers the symmetrical mound of St. Helens or the rugged dome of Adams. Rainier may be visible in the distance. The great snowcaps are like hooded gobling at a council) fire-—sllent, majestic, and ominous, All who come to the forest feel thelr brood- ing presence. Once each of these mighty craters belched rock and fire. Lava chunks the size of five- room cottages were thrown higher in the sky than frail man yet has flown. Air holes were blown in boulders, and this weird sym- bol of bygone ages still blankets the moraines at the foot of Mount St. Helens. It ts called pumice. The rock is pocked with tiny cavities, put there by the terrible unseen forces which lurk at the earth's core. Small boys who visit the forest throw the pumice on the surface of a lake. Miraculously, it floats, and they have had an outdoor lesson in volcanic power and fury. 8t. Helens, Adams, and Rainier last were violently active in prehistoric times. No man or beast could have survived the bale- ful fire which they spread across the Jand, flame throwers on a cosmic scale. Yet as late as 1841, St. Helens smoked forebodingly. Bteam issucd from fissures on its flanks and from the crater at its crest. Frontier families in the Northwest wondered if some grim Pompeli-like doom was to be their fate. A1313 But St. Helens smoked no more, and fite tery settlers returned to their cabins. Yet an ascent of the mountain today, over a century later, still is tinged with awareness that this was the last true Java volcano in continental United States to signal its fiery origins. The Pacific Northwest abounds in magnifi- cent vistas, but one particularly appears on more calendars than any others Spirit Lake stretches placidly at the bage of Mount 8t. Helens, a tureen of blue nectar below a vanilla ice-cream cone of universal dimen- sions. Governor Adlai Stevenson of Ilinvis called it a landscape to excel anything he had seen on tramps through the Swiss Alps. Spacious lake, comfortable foothills, and fragile yet sinister mountain are blended into a classic painting by the Master Hand of creation. This is a family forest, with attractions for all ages Grandparents can idle on the veranda of Harmony Falls Lodge and watch ® younger generation leap and frolic in the cold water of Spirit Lake. Yet perhaps grandma and grandpa can reach the forml- dable summit of 8t. Helens. It has been done by those in the sunset of life, under the ex- pert guidance of the region’s most famous mountain-climbing club from Portland, 99 miles away. “Mazgoma” means mountain goat, and the human Mazamas display this agility as they get old-age pensioners, legless newsboys, and all others with courage and determination to the top of the dizzy peak. The Gifford Pinchot National Forest is predominantly a domain for recreation and inspiration. Yet it is something more. With the country again desperately need- ing lumber for barracks and military proj- ects, Douglas fir timber is felled on the Iron Creek drainage in tremendous quantities. Yet rangers supervise the cutting. Only ripe, mature trees can be brought to the ground. Blocks of timber must be spared to reseed the area Lookouts vigilantly watch for fire from logging operations. One stately, blonde Jookout even married the head ranger of the Gifford Pinchot National Forest a few years ago, so romance, too, 4s here. Lumbering 1s carried on carefully for more reasons than one. At least a dozen impor- tant rivers foam off the slopes of the Lorest. These provide drinking wuter for all the Eagle cities along the perimeter of the mountain domain. They also irrigate the plaided acres of orchards which have made Yakima famous for apples, Not many profound charges have dis- turbed this United States version of Bhangri- La. Behind its protecting buttress of {uut- hills and canyons, the Gifford Pinchot Forest still 1s a haven for the old-time prospector and lumberjack who carries his sourdough jar with him to get the biscuits and hot cakes gtarted at the next camp. Many of these men sleep with the jug in their bed rolls to keep it from freezing on frosty nights. Occasionally «a red-hot argument starts when some tInterloper insists that the right kind of syrup is more important to atack of “hots” than the fermenting bacteria in that yeasty Jar. Twenty-second Constitutional Amendment EXTENSION OF REMARKS HON. E. E. COX OF GEORGIA IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. COX. Mr. Speaker, under leave to extend my remarks, I include the
A1314 following statement by Hon. James A. Farley, chairman of the board, the Coca-Cola Export Corporation, on the passage of the twenty-second constitu- tional amendment: The passage of the twenty-second consti- tutional amendment by 36 States limiting Presidents to two full terms, thus making it the luw of the land, represents the senti- ment of millions of people in this country and gives unmistakable approval to the posi- tion of those who have long maintained that no man elected to this office should serve more than two terms, It is only natural that I should be grati- fled by the action of the 36 State legisia~ tures because I was the center of consider- able controversy, and I might even say the object cf rather harsh criticism, when I took the unqualified position tn the 1940 Demo- cratic Convention in Chicago that I was op- posed to a third term. 1 held this view because it was my inner conviction that the presidency should be limited to two terms and that it was so In- tended by the founding fathers, although they did not put it into law Many of my close friends and associates from all over the country did not think that I should declare myself on this subject, but to have held back and said nothing would have meant that I was not faithful to the principles which governed my public life— namely, that it was my duty to give my honest vpinion on matters of public inter- est, regardless of how it would affect me personally It is not my purpose now to speak in a spirit of vindication or to proclaim that I was right. But I do feel that the legislu- tures of the 36 States, which are the voice of the people, have indicated that they shared my viewpoint because they believed that the two-term law was in the best in- terests of our country. Fair Play and the Mobilization Program EXTENSION OF REMARKS or HON. FRANK BUCHANAN OF PENNSYLVANIA IN THE HOUSE OF REPRFSENTATIVES Monday, March 12, 1951 Mr. BUCHANAN, Mr. Speaker, under leave to extend my remarks in the Rec- ord, I include the following address by CIO president Philip Murray delivered over the National Broadcasting Co. net- work, March 5, 1951: Good evening. I want to talk to you tonight about the tremendous and complex problems that we, the American people, face at home and abroad. Our America ts caught in the web of a great international erisis—a crisis resulting directly from Com- munist aggression. Tonight, as we sit in our homes, boys from our factories and farms and schools are fighting for freedom’'s cause in the snow and mud of Korea. Throughout the entire world, men and women who be- lieve in freedom and human dignity are taking more effective steps to resist totall- tarian dictatorship. Here, in the United States, we have long since mude our great decision. Together with the other peoples represented in the United Nations, we are resolved to mobilize our resources in defense of the democracy we love and cherish. Our skills, our resources, and our spirit have given us the leadership of all the demo- cratic world In that role of leadership, we must show Intclligence and imagination, courage, and boldness. Those are the qual- ities expected of leaders. And the American people have those qualities. On the fleld of battle against Communist aggressors, the men and boys trom our cities and hamlets are showing intelligence and courage But, on the home front, there is contusion, Malignant inflation is feeding on the vitals of economic life, It aflects euch and every family; nobody ever escapes the effects of inflation You know that Every salary and wage earner knows lt. Every housewife mects the byproducts of inflation on her trip to the grocer or the butcher Prices have gone up too high. They are continuing to rise too fast, right now. And there Is no adequate mechanism at work to halt that terrible inflation, which steals food from the tables ol our families and bullets trom the arsenals of our Armed Forces. Inflation must be stopped. Inflation can be stopped—if we meet this major problem of the home front with the same boldness, intelligence, and courage that our Armed Forces are showing in Korea. Thus far, Con- gress and our mobilization officials have not met this problem head-on As president of the CIO, and a cochairman of the united labor policy committee, I can state with conviction that Americans are de- termined to halt the steady upward march of the Cost of living. Certainly, the men and women of our labor unions have repeatedly shown their desire to stabilize our national economy. Last summer when the outbreak of war in Korea first began to place its burden on the American economy, organized labor called for prompt and vigorous Goverment action to curb inflation. We said then and we say now, let us defend ourselves against the economic fifth column that will destroy our standards of living. We said then and we say now, let us meet this challenge of world conflict by the democratic principle of equality of sac- rifice, let there be a sharing by every group in the land of the burdens and responsibili- ties which we as free men must assume. This demand for equal sharing of our com- mon burdens and responsibilities has been voiced by many segments of the population, Americans Know instinctively that our de- fense mobilization program must pley fair with all the people-—with labor and with Management, with the farmer and the con- sumer. However, our mobilization program is not now being conducted with equity and justice for all. It is not drawing fully on the abili- ties and skills of all the people. Now, while there is time, it is essential that these basic defects be corrected The United Labor Policy Committee, rep- resenting 15,000,000 workers, has made pro- test about this serious situation. We have done so not to impair the defense mobiliza- tion program but to improve it. And it ure gently needs improvement. Our criticisms are not those of labor alone but of millions of Americans in every walk of life. It 1s not just a labor problem when con- sumer prices go up, or an inequitable share of the taxes are impesed on the lower in- come groups. It is not just a labor problem when the future of rent control is in danger. Untons are not the only groups concerned when wages and salaries are threatened with a straitjacket, while the dollar loses value. We aro supposed, for example, to have price controls. Yet, the consumers price in- dex just published is at the highest point in our history—and our price administrators tell that prices will continue to rise still higher. The Consumers Price Index, published by the Government, provides ample proof that present price-fixing policies are simply a hoax. The hypocrisy of this present system APPENDIX TO THE CONGRESSIONAL RECORD of alleged price control demonstrates an ut- ter lack of morality—-for it provides bo- nuses to profiteers at the very moment it works new hardships, of a discriminatory na- ture, upon the working men and women of America. Moreover, the latest so-called price regula- tion does not establish firm ceiling prices. Neither you nor any other consumer js pro- tected by this order, which cannot—-by its very nature-—he effectively enforced. This is not real price control with teeth in it. This is a license to charge whatever the traffic will bear. A change is nceded— or the national welfare will sultfer. The tax program is the second example of unequal burdens. Your Representatives and Senators are considering tax proposals that will favor the high incomes and bear down on lower incomes, Under this tax pro- gram, if you are earning 83,000 or $4,000 a year, you will have to pay the same amount of income tax you paid at the height of World War II. But if your income is $500,- 000 a year, you will be permitted to pay $40,000 less than in 1944—and you'll have additional loopholes to save you still more tux money There’s no equality of sacrifice in this type of tax program. Another case in point is rent control. Un- der our present weak law, millions of fam- ihes have been forced to pay much higher rents, Yet, no rent-control law, with really effective provisions, is anywhere neur pas- sage in the Congress. If nothing is done by March 31, tenants in every part of the Na- tion will be confronted with the specter of rent Increases of 10 or 20, or even 40 percent. On prices, on taxes, on rents—you, the ultimate consumer, are being asked to bear the heaviest share of this increasing burden. On the other hand, corporation profits have reached an astounding all-time high, Nothing effective is being done to make those superprofits bear thelr fair share of our national burden. At the same time, while you are carrying the extraordinary burden, a new unfair wage and salary formula has been promulgated by the Government. The net effect of this Government order is to keep wages and salaries down. This combina- tion of heavier expenses and restricted in- come will cause real hardship umong millions of moderate income families. Our com laint against the stabilization program is that it is not geared to curb in- filation. Rather, in the name of fighting in- flation, the program will lower living stand- ards while safeguarding swollen profits. On the one hand, flabby treatment of the wealthy and gingerly treatment of profiteers; on the other, severe controls over people in the lower and middle income levels. That 1s the reverse of fair play. Who is to blame for this lop-sided approach to our inflation problems? First, the conservative coalition of Repub- licans and Southern Democrats who domi- nate our Congress. They have given us a law that cannot effectively keep prices down and thus far, they have failed to improve the law to make it workable. Second, an equally conservative coalition of. big-business-minded officials who direct our defense mobilization program. No one can object to the desire of busi- nessmen—big or small—to serve their coun- try. But we can and should object when representatives of big business monopolize the top levels of our defense mobilization program. That program is supposed to serve all the American people. Representatives of labor, of agriculture, and of small business thus are entitled to a significant place— in the policy and operating levels of our mobilization agencies. These spokesmen for major groups in the American public would not serve narrow interests—they would con- tribute their skill and their viewpoints to building a defense program thoroughly at- tuned to the needs and the problems of every citizen,
APPENDIX TO THE CONGRESSIONAL RECORD This would help to insure a fair deal for every American citizen—rich or poor, city worker, or rura) farmer, housewife or school teacher, people at work and people who have been retired on meager pensions. Americans want 4 defense program that will gtve our Armed Forces the supplies they need—-when they need them and in abundant quantity. Americans want equitable treatment for the millions of the civilian population. That means: price controls that work, and an equitable wage and salary policy. Americans want rent controls extended. They want a tax program that will not per- mit any section of the public to avoid its share of the revenue burden. They want corporations to make reasonable profits— but not a license to profiteer at the expense of the people during an emergency. The American people have shown time and again that they insist upon fair play. Let us start now to get fair play in the mobilization program. Let us halt inflation and promote equality of sacrifice throughout the length and breadth of America. That is labor’s program. That is the American people's program. Let us all work together to attain it. We of labor stand ready to do everything in our power to achieve the equality of sacrifice needed in this time or crisis. Textiles for Defense EXTENSION OF REMARKS HON. JOSEPH R. BRYSON OF SOUTH CAROLINA IN THE HOUSE OF REPRESENTATIVES Monday, March 12, 1951 Mr. BRYSON. Mr. Speaker, I attach hereto an editorial from the Observer, a splendid weekly newspaper printed in my home town of Greenville, 8. C. In view of the importance of textiles in the defense effort, this editorial is most en- couraging. It follows: TEXTILES FOR DEFENSE In these days, when so much confusion is evident tn both official and unofficial circles, it is encouraging to note that a major in- dustry has voluntarily initiated a program designed to make the most of its vast re- sources. Such a move by the far-flung American cotton textile industry proniises to be of tremendous help to the country’s defense activities. Few persons realize the complexity of this industry. More than 600,000 workers in one- thousand-two-hundred-odd separate mills produce a bewildering variety of goods. These mills annually pour out billions of yards of yarn and fabrics, ranging from sur- gical bandages to heavy duck cloths. In 1950, the combined value of these products ‘was approximately seven and one-half billion dollars. No industry {s more basic or important to the security of the Nation than textiles. Its consumption of cotton provides livelihoods for millions of farmers, processors, and handlers. Its finished products go into countless items, Hke garments, conveyor belts, or tire fabrics. Yet, its very size and diversity present a peculiar problem in times of emergency. Immediately following Pearl Harbor, for in- stance, grave confusion resulted from over~- hasty plans attempting to coordinate the production of hundreds of cotton mills, large and small, in various sections of the country. It was months before red tape was elimi- nated and Government planners were able to utilize more fully the knowledge and advice of experiencea iextile men. The cotton textile industry is taking steps to forestall similar difficulties in the current emergency, no matter how severe are the demands made upon it. All the various seg- ments of the industry have been organized 50 that they can offer their services to mill- tary and civilian planners. Systematic plan- ning will permit the industry to realize its full potentialities. It will prevent, for exam- ple, one mill from being overtaxed in turn- ing cut an important type of fabric in a limited time when some facilities of another mill might be easily shitted from less eesen- tial goods to speed production. Textile leaders point out that physically the industry is in its best shape in history. More than a billion dollars has been spent for modernization since World War II. Its plant facilities, plus such intangibles as “know-how” gained in the war, equip it to handle almost any demands for military and civilian production With its voluntary program well under way, the cotton textile industry has in effect said to the Government, “We stand ready for any task. Let us know what you want, Give us the raw materials and we have the loyal workers, managerial ability, and plant equipment to produce as needed.” Interlocking Directorates EXTENSION OF REMARKS or HON. EMANUEL CELLER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Thursday, March 1, 1951 Mr. CELLER. Mr. Speaker, under leave to extend my remarks in the Rec- orD, I include the following statement entitled “Interlocking Directorates” by James M. Mead, Chairman of the Fed- eral Trade Commission, before the Sub- committee on Monopoly of the Commit- tee on the Judiciary, House of Repre- sentatives, March 7, 1951: It gives me great pleasure to present to this committee the report of the Federal Trade Commission on interlocking direc- torates. For a number of years the Commission has been endeavoring through its economic reports to help the Congress and the public discover the extent of the concentration of economic power, the means by which con- centration ie achieved, and the results that are to be expected therefrom. In 1948 the Commiasion submitted a report on the mer- ger movement which showed that in 8 years about 6 percent of the assets of all American manufacturing corporations had been ab- sorbed through mergers and that many of these mergers had been of a kind tending to reduce competition. Partly on the basis of this report your committee sponsored a bill to amend section 7 of the Clayton Act, which became ¥.w last December. In 1949 the Commission made a report showing the con- centration of control over productive facill- ties which prevatled in 26 manufacturing in- dustries tn 1047. In 1950 the Commission published a report showing the exent to which the concentration of production in large companies was que to the use of large plants and the extent to which it was due to other factors. Your committee held hearings on both of these reports and thus brought them to the attention of the Con- gress and of the public and made their significance clearer. A1315 The report on interlocking directorates is a study of the way in which the largest manutacturing corporations are bound to- gether through the presence of the frame persons on their various boards of directors. Thus it presents some of the information that is needed to determine whether these companies may be expected to compete with each other or to act together in ways capa. ble of reducing competition, It also pro- vides some of the information that is needed to determine whether or not Section 8 of the Clayton Act, through which the Con- gress sought to prevent interlocking direc- torates that injure competition, is fulfilling its intended purpose. The Clayton Act and the Federal Trade Commission Act were developed on a bi- partisan basis after the platforms of both the Democratic and epublican Parties in 1912 had emphasized the importance of strengthening the antitrust laws. The pro- vision about interlocking directorates was included in the Clayton Act in response to ® specific request in President Wilson's mes- sage to Congress in 1914. He asked for a law “which will effectively prohibit and prevent such interlockings of the personnel of the directorates of great corporations-— banks and railroads, industrial, commercial and public-service bodies—as in effect result in making those who borrow and those who lend practically one and the same, those who sell and those who buy but the same per- sons trading with one another under dif- ferent names and in different combinations and those who affect to compete in fact partners and masters of some whole field of business.” The committee report on the Clayton Act emphasized the same point, say- ing “The truth is that the only real service the director in a great number of corpora- tions renders is in matntaining uniform polictes throughout the entire system for which he acts, which usually results to the advantage of the greater corporations and to the disadvantage of the smaller corpora- tions which he dominates by reason of his prestige as a director and to the detriment of the public generally.” In the debates on the bill the sponsors of the provisions about interlocking directorates emphasized the fundamental principle that no man can serve two masters. The Clayton Act contains three different types of prohibitions applicable to inter- locking directorates. One of these in section 10 of the act applies to common carriers. Another in section 8 of the act applies to banks, and 4 third, also in section 8, applies generally to other types of corporations, al- though by later legislation air carriers and communications companies have been made subject to special statutes. The provision about common carriers is designed primarily to prevent these concerns from being inter- locked with enterprises which deal in their securities or furnish them with supplies. It provides that lf the board of dtrectors of a common carrier includes any person who is at the same time a director or manager or purchasing or selling officer of an enterprise that has such dealings with the carrier or if any such person is the carrier's president or manager, or purchasing or selling officer, all the carrier’s transactions with that en- terprise must be by competitive bidding fol- lowed by an award to the lowest bidder under regulations prescribed by the Interstate Commerce Commission, This effort to as- sure arms-length dealing and competition among those who deal with a carrier has been supplemented in the Interstate Com- merce Act by a provision that no person may be an officer or director of more than one car- rier unless his dual role is authorized by the Interstate Commerce Commission after @ finding that neither public nor private inter- ests will be adversely affected. Thus the present law applicable to common carriers
A1316 contains broad precautions against inter- locking relations either on a horizontal basis among the carriers themselves or on 8 verti- cal basis between the carriers and those with whom they deal. It seeks to prevent those linkages not only where they consist of hav- ing directors in common, but also where they are brought about through the officers of the various enterprises. The rule applied to banks in the Clayton Act prohibits interlocking directors, officers, or employees unless the Board of Governors of the Federal Reserve System explicitly per- mits a particular type of interlock by regu- Jation, This rule is subject to certain excep- tions, the most important of which exempt banks which are engaged in different classes of business and operate in noncontiguous territory. This rule is generally designed to prevent interlocks between banking corpo- rations that are or may be in competition with each other. It does not, however, at- tempt to prevent interlocks between banks and their customers. Like the rule about common carriers, it applies not only to direc- tors but to officials as well. The rule generally applicable to industrial and commercial companies is much more Iumited than those which govern common carriers and banks. It prohibits the holding of directorships in two or more corporations if any of the corporations has capital, sur- plus, and undivided profits aggregating more than a million dollars, and if the corpora- tions have been competitors so that elimi- nation of competition between them by agreement would violate the antitrust laws, Unlike the law applicable to banks and com- mon carriers, this provision exempts all non- corporate business and the smaller corpo- rations. It is limited strictly to the main- tenance of competition between competing corporations and does not touch the vertical relationship between a corporation and its suppliers and customers. Moreover, the rule applies only to interlocking directors and has no bearing upon interlocks that may be ac- complished through officials other than di- rectors. The Commission’s report has not attempt- ed to ascertain the situation as to interlock~ ing relationships among banks or among common carriers. It is limited strictly to the interlocking relationships among the larger manufacturing corporations and be- tween these corporations and a selected sam- ple of other large corporations. However, it has taken account of the principles that had been applied by the Congress to interlocks by banks and by common carriers for the sake of ascertaining whether or not similar prob- lems may arise in the manufacturing field. On the basis of the facts disclosed, the Commission has concluded that Section 8 of the Clayton Act does not ndequately cope with the compotition-reducing effects of in- terlocking directorates in ordinary manufac- ture and commerce. The principal weaknesses of the present law are these: First, it can be so easily evaded as to be scarcely worth enforcing. This law is vio- lated if a director of one large concern 1s also a director of its large competitor. How- ever, there {s no violation of the law if one concern’s president is director of the other, or if the president of one company is sales manager of the other. The result is that when an interlocking directorate is quos- tioned, a mere change of form without change of substance is sufficient to bring about technical compliance with the law. For example, several years ago the board of directors of General Steel Castings contained the president and two vice presidents of American Steel Foundries, all of whom were also directors of the latter company and also contained the chairman of the board and the president of Baldwin Locomotive, both of whom were also directors of that company. When ths Department of Justice questioned these interlocking directorates, the directors from American Steel Foundries and Baldwin withdrew from the General Steel Castings board. Thelr place was taken by two vice presidents and the comptroller of American Steel Foundries and two vice presidents of Baldwin Locomotive. But since none of these officials was a director in any company but General Steel Castings, the new arrangement satisfled the requirements of section 8 of the Clayton Act. There is no reason to believe that the closeness of the executive and policy-making ties between the three companies was in any way reduced by the changes. Second, the presen’ law is applicable only to direct interlocks as distinguished from in- direct interlocks. The indirect interlock is by far the most common type of interlocking relationship among competitors. Such an indirect relationship is established when two or more competitors have directors who sit jointly on the board of directors of a third company. For example, Standard Oil Co of Indiana, Standard Oil Co. of California, Gulf Oil Corp., and Continental Oil Co. all had directors on the board of the Chase National Bank. Similarly, the Texas Co., Shell Union Oil Co. and Tidewater Associated O11 Co. all had directors on the board of Central Han- over Bank and Trust Co. of Chicago, and Standard Oil Co. of Indiana and the Texas Co each was represented on the board of Continental Illinois National Bank and Trust Co of Chicago. The significance of such indirect interlock.ng relationships differs from case to case. It tends to increase when more competitors are represented on the same board. when each competitor has more than one representative on the board, und when the same competitors are repre- sented together on the boards of more than one company. It also tends to increase when the company on whose board the various competitors are represented has a business interest in the terms of the competition be- tween the represented companies. When several competitors are represented on the board of a bank which finances them all, or of a large buyer of their products, or of a large supper of their raw materials, there is a strong probability that the indirect rela- tionship will impair competition. Indeed, it is hard to see how the directors from the various competing companies could perform their duties as directors except by working together to keep the competition of their companies within Mmits that would not adversely affect any of the companies in- volved Decision of major policies of pur- chase and sale by the directors of the com- pany in whose board the interlock takes place can scarcely fail to produce a working under- standing as to the respective shares of that company's business to be enjoyed by the competing customers or supplers from which the directors come. Third, the present law makes no attempt to prevent injuries to competition that may be produced through interlocking relation- ships between suppliers and customers, In- terlocking directorates which connect a sup- per with his customer are common. Their typical purpose appears to be to create a two-way preferential relationship which gives the customer assurance of supplies on favorable terms anc gives the supplier as- surance of an outlet for his products In other words, such an interlock has a purpose similar to that of vertical integration. Like vertical integration, it may be sometimes harmless and sometimes seriously harmful. So long as neither the supplier nor the cus- tomers has an important part of the total market, tt 1s probable that the vertical rela- tion between them will not jeopardize the opportunity for other concerns to sell or obtain goods. However, if the supplier is an important concern the loss of equal access to his products may be harmful to competi- APPENDIX TO THE CONGRESSIONAL RECORD tion among the custoriers, and if the cus- tomer is an important concern the loss of the sales outlets which he controls may be harmful to competition among the sup- pliers. If a large supplier and a large cus- tomer work out a preferential trading rela~ tionship, there is a strong Ikelihood that other large suppliers and large customers will find it expedient to do the same thing in self-protection; and when such dancing- partner arrangements become general the effect is not only to give each of the dancing partners a good deal of relief from competi- tive pressure but also to make it difficult for small companies that have not been able to find dancing partners to have any share in the party. Vertical interlocks are particularly serious when one of the interlocked companies is a public utility that has a duty to serve all customers without discrimination. The es- tablishment of preferential relationships with such a utility defeats one of the basic purposes of public utility regulation. The interlocking directorate report shows the prevalence of indirect interlocks between competitors and of interlocks both direct and indirect between suppliers and custcmers. On the basis of this report I am convinced that section 8 of the Clayton Act as now written would cover only a small part of the problem of interlocking directorates even if it were effective in preventing direct inter- locks between competitors. Section 8 should be amended to take care of the inadequacies which have come to Hight. The amendment should tighten the law against evasion so that where a direc- torate may not be held by the director of another company it may also not be held by an officer, employee, agent, or substantial stockholder of that other company. The amendment should broaden the law to cover the kinds of indirect interlocks between competitors in which a substantial lessening of competition is reasonably probable. It should also broaden the law to cover the Kinds of vertical interlocks between sup- pliers and customers in which there is a reasonable probability that competition will be reduced. The Commission is now pre- paring draft legislation designed to accom- plish these purposes. Legislation Desired by Federal Trade Commission as Presented by Hon. James M. Mead, Chairman EXTENSION OF REMARKS HON. ARTHUR G. KLEIN OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Thursday, February 15, 1951 Mr. KLEIN. Mr. Speaker, there are few of us here without a personal ac- quaintance with former Senator James M. Mead, of New York, who is now con- tinuing his able public service as Chair- man of the Federal Trade Commission— certainly none to whom his name is un- known. When the Chairman appeared as a witness before my Committee on Inter- state and Foreign Commerce, by invita- tion of our esteemed chairman, the gentleman from Ohio [Mr. Crosser], to present a formal statement outlining legislation which the Federal Trade Commission deems desirable in the Eighty-second Congress, his statement aroused so much interest I am taking
APPENDIX TO THE CONGRESSIONAL RECORD the liberty of inserting it in the Con- GRESSIONAL RECcorD, where it will be more readily available to all Members and to thousands of interested citizens. The statement follows: I deeply appreciate this opportunity which you have afforded me to discuss with the committee legislation that may be needed in the emergency. I regard it a matter of real importance with highly constructive possi- bilities toward advancing the cause of good government for agencies such as the Federal Trade Commission to be able to consult closely with appropriate committees of Con- gress and to discuss questions of mutual concern. It is for such purpose, I under- stand, that the members of the committee have taken the time to assemble this morn- ing to hear agency representatives. With your permission, and by way of back- ground, I shall refer bricfiy to the relation- ship of the work to the Federal Trade Com- mission to that of your committee, and shall then detail certain items of possible new legislation which are of concern to the Com- mission, either from the standpoint of the present emergency or as important to the public interest trom the long-range view- point. We in the Commission feel very close to this committee The original legislation un- der which the Federal Trade Commission was created, when passed in 1914, was in charge of this committee That stutute in- troduced into our Federal law the principle that unfatr methods of competition in com- merce are unlawful, and the Commission was established as the agency to uncover such methods and upon proof and hearing to issue cease-and-desist orders against the ol- fending parties That act has become a Jandmark in our laws designed to maintain and protect our system of free competitive enterprise Much subsequent legislation with which the Federal Trade Commission is concerned has likewise come through this committee, such as the Wheeler Lea Act of 1938 and the Wool Products Labeling Act of 1939 The statutes mentioned together with the Clayton Act, the Robingon-Patman Act amendments, and othe: legislation, mate- rially enlarged the duties of the Commission, which is an agency established directly by act of Congrees. Our principal functions and responsibilities as specified by law may be briefly summarized as follows: 1. To promote free and fair competition in interstate commerce in the interest of the public through prevention of price-fixing agreements, boycotts, combinations in re- straint of trade, other unfair methods of competition, and unfair or deceptive acts or practices (Federal Trade Commission Act, sec. 5). 2. To safeguard the consuming public by preventing the dissemination of false or de- ceptive advertisements of food, drugs, cos- metics, and devices (Federal Trade Commis- sion Act, secs. 12 through 15). 8. To prevent unlawful discriminations in price and other discriminations; exclusive- dealing and tying contiacts and arrange- ments; mergers of competitors through ac- quieitions of capital stock or assets; and certain interlocking directorates between competitors (Clayton Act, secs. 2, 3, 7, and 8). 4 To protect producers, manufacturers, distributors, and consumers from the unre- vealed presence of substitutes und mixtures tn manufactured woo! products by requiring content labeling (Wool Products Labeling Act). 6. To supervise the registration and opera- tion of associations of American exporters engaged solely in export trade (Export Trade Act). 6. To petition for the cancellation of the registrations of trade-marks which wer? il- legally registered or which huve been used for purposes contrary to the intent of the Trade-Mark Act of 1946 (Latham Trade- Mark Act). 7. To gather and make available to the Congress, the President, and the public, factual data concerning economic and busi- ness conditions as a basis for remedial legis- Jation where needed, and for the guidance and protection of the public (Federal Trade Commission Act, sec 6). 8 Under the Defense Production Act of 1950, the President is authorized to enter into voluntary agreements and programs to further the objectives of the act and to re- quest industry to conform to such agree- ments and programs Persons complying with such request are to be accorded exemp- tion from the antitrust Iraws and the Fed- eral Trade Commission Act, upon clearance of the program through consultation with the Chairman of the Federal Trade Commis- sion and the Attorncy General and approval by the Attorncy General. Under these pro- visions the Chairman of the Commission as well as the Attorney General has the duty of examining into such agreements and pro- grams and according them appropriate clear- ance pursuant to law. ITEMS FOR POSSIBLE NEW LEGISLATION While the Federal Trade Commission's duties are numerous, they are all tn line with the objective of protecting industry, trade, and the buying public from the use of practices or methods in commerce which ure unfair o1 contrary to the public interest as destructive of the freedom of competition, Many competitive problems which vitally af- fect our cconomy have been studied and re- ported upon by the Commission during the period of its operations. Many of these re- ports have formed the basis of new legisla- tion, Our experience currently points up the need fur additional legislation on several matters which I believe will be of Interest to the representatives on the committee. AMENDMENT TO SECTION 11, CLAYTON ACT When your committee processed the legis- lation which resulted in enactment of the Whoeler-Lea Act of 1938, provision was there- by made to the effect that orders to ccase and desist of the Federal Trade Commission shall become final if appeal ts not taken to the court of appeals within 60 days. It was further provided that violation of such an order after it became final shall be sub- ject to civil penalties up to $5,000, which the United States district courts are author- ized to assess in a suit brought hy the United States. These measures for enforcement of cease and desist orders under the Federal Trade Commission Act proved highly bene- ficial. In the absence of such provisions Commission cease and desist orders never became final and appeals were possible at any time, even many years after the trial had been concluded and the decirion of the Commission had been made Further, the civil penalty provisions put teeth into Com- mission orders after they had become final, and the Commission through the courts was thereby enabled to apply a more effective measure of compliance than was possible under the old method of contempt procced- ing which theretofore was the only r-eans available for enforcement of orders. We recommend legislation whereby the same type of provisions be applied to Com- mission cease and desist orders under the Clayton Act, including the Robinson-Patman Act, as has been applied by the Wheeler- Lea Act to Commission cease and desist orders under the Federal Trade Commission Act. This would require amendment of sec- tion 11 of the Clayton Act, the procedural section, to introduce into the Clayton Act the Wheeler-Lea Act type of provisions re- specting finality of orders and civil penalties for violation, The original Federal Trade Commission Act and the Clayton Act, both passed in 1914, as you may recall, were closely related A1817 bills. Both were under consideration in the Congress at the same time and both were aimed at curbing various unfair and re- strictive practices in competition, The pro- cedures in the two bills which provided for enforcement hy the Commission through {a- suance of cease-and-desist orders were in practically identical terms, and the samo considerations apply to Clayton Act orders as those which led to the amendment oS the Federal Trade Commisrion Act. The Com- mission consriders such amendment of sec- tion 11 of the Clayton Act as a highly im- portant need by way of new legislation. The Commission recommends this legis- lation to make it orders more effective against price discrimination, illegal tying contracts, acquisition of comretilors, and the like Since these orders of the Commission un- der the Clayton Act are designed to pre- serve competition and prevent the growth of entrenched monopoly, the public interest requires that they become effective and cn- forceable without delay, whereas at present the proceeding may be prolonged almost in- definitely by the offending party, and the Government put to the necessity of proving him guilty of violation of law three succes- sive times before reaching the point where the court mry apply sanctions which must be by way of contempt action. We have prepared draft of a bill for the purpoze mentioned which will be made avail- able for congressional consideration AMENDMENT OF SECTION & OF THE CLAYTON ACT Section 8 of the Clayton Act prohibits in- terlocking directorates between competing Corporations of a certain size. The section has proved to be weak and inadequate to accomplish its purpose of preventing inter- corporate relationships which are destruc- tive of competition and lead to undue con- centration of econoritc power We believe that such section 8 on interlocking directo- rates should be amended to take care of the inadequacies which have come to light. This proposal is based upon ea Commission report on interlocking directorates which is now being printed. The relationships among large companies, as Cisclosed by this report, supply striking evidence of the inade- quacy of the portion of the section directed against interlocking directorates among competing corporations other than banks and common carriers The Commission makes no recommendation for amendment of the part of section 8 of the Clayton Act which applies to interlocking directorates among banking corporations nor for amend- ment of section 10 of the act, which applies to interlocking directorates among common carriers, The defect of the present law, as applied to manufacture and commerce, is twofold: First, the offense is so narrowly defined that the law 1s easily evaded; and second, various types of interlocking relationship which im- pair competition are not covered by the statute. Evasion of the intent of the present law 18 possible by placing an officer, employee, agent, or substantial stockholder of one cor- poration upon the board of directors of another corporation where ft would be un- lawful for the same person to be a member of the boards of directors of both corpora- tions. For practical purposes, there ts little difference between an interlock of corpora- tions through common directors and an interlock through a4 director of one corpora~ tion who js an official or substantial owner in another corporetion. This potnt has been recognized in the present statute in the case of common carriers and banks. The pro- posed amendment would apply the same principle to manufacture and commerce. The most common type of interlocking re- lationship which impairs competition but is not covered by the present statute is that in which competing corporations are iInc-rectly
A1318 interlocked through the fact that officers or directors of each of them are members of the board of directors of one or more concerns which supply them with goods and services or which buy their products. In this type of situation, decision of major policies of pur- chase and sale by the directors of the com- pany in whose board the interlock takes place produces necessarily a working understand- ing us to the respective shares of that com- pany’s business to be enjoyed by the competing customers or suppliers trom which the directors come Another type of relationship which en- dangers competition is that in which one of & proup of competitors is represented on a board of a public utility company that 1s so affected by a public interest that it is re- quired by luw to serve all customers without discrimination. Preferential relationships between this competitor and the public utility company aro to be expected in such a situation A third type of problem is created by the direct vertical interlock of a buyer with a seller in cases in which either concern has such power in the murket that tf the other is given preferentinl treatment the other's competitors will find it difficult to compete with the preferred concern The Commission is now preparing draft legislation to amend section 8 50 that tt will no longer ignore important interlocking re- Jatlonships which impair competition in manufacture and commerce. This logislation, in our opinion, is urgent- ly needed not only during the present emer- gency but also from the long-range view of strengthening our antimonopoly laws, CONCENTRATION OF ECONOMIC POWER The concentration of economic power in the hunds of the few und the consequent suppression of small independent business constitute perhaps the greatest present-day threat to the compctitive system Bear in mind we are not against bigness as such but we sare concerned over the future of small business, Over the past year o1 more the Commission hub sent to Congress a nume- ber of reports revealing cata touchme this subject There are reports of the Federal Tiade Commission with the followin: titles: “Concentration of Productive Facilities, 1947," 96 puges; “The Divergence Between Plant and Company Concentration, 1947," 163 pages, “The Merger Movement—a Sum- mary Report,” 134 pages, “International Cartels in th Alkall Industry," 96 pages; “International Steel Cartels,” 115 pages; “In- ternational Electrical Equipment Cartels,” J06 pages, “Manutacture and Distribution of Farm linplements,” 160 pages, “The Fer- tillver Industry,” 176 pages, During the Elehty-fist Congiess a num- ber of hills had been introduced to deal with certain aspects of the problem Amung these are bills proposing to strengthen the anti- trust laws by increasing the penalties for violation One of the bills, HR. 7827, passed the House on June 5, 1950, and provided for increasing the criminal penalties tor viola tion of the Sherman antitrust law from $6,000 maximun. to $50,000 for exch count Quite obviously the penalties for violation of the antimonopoly law have been too ght to provide an adequate deterrent. In my opinion steps to sharpen the teeth of the antitrust Jaws are needed and should be taken. Danvers due to the accelerated tend- ency of mobilization toward concentration and the submergence of small independent business are such as to warrant classifica- tion of legislation of this type as an emer- gency mexsure, LABELING LEGISLATION The wholesome functioning of competitive business for serving the needs of the publio depends in no little measure upon truthful and informative labeling under which mer- chandise reaches the ultimate purchasing consumer. Such honest informative label- ing {8 often of greater importance in times of emergency than otherwise because scarcl- ties of tried and proven materials bring about extensive use of substitutes which, unless scrupulously disclosed by proper label- ing, tend to deceive and defraud the public, Moreover, the stress Imposed upon the people by high prices and the necessity to stretch the consumer's dollar to the limit are more keenly felt in times of emergency. These require that greater attention be given to the type of consumer legislation which ts directed toward assuring that the things the consumer must buy for himself and his fam- ily are properly labeled to enable him to buy intelligently and without being misled by deceptive appearances or representations. Legislation of this character, which has proved to be such a boon to the consuming public as well as a matter of major protec- tion to honest and scrupulous manufactur- ers and m*rechunts, is the Wool Products Labeling Act of 1939 which was handled in tts legislative journey by your committce. In the Eivhty-lirst Congress your commit- tee also produced the Fur Products Labeling bil (HR. 6187) which was passed by the House on July 14, 1949, but failed of being reached on the Senate calendar before the end of that Congress I am gratitied to note that fur labeling legislation has agin been introduced, known as the O'Hara bills, also that in the Scnate Lur labeling legislation has already been reported out of committee. Since the entire subject was fully developed in extensive hearings under the jurisdiction of this committee both in the Eightieth and Eighty-first Congresses, I need not undertake to spexk of the great need for this legtola- tion to afford adequate protection to the consumcr and the scrupulous manufactur- ers and merchants against deception and fraudulent practices in the fur business I regard the passage of the Jur-labeling legislation as a measure of real importance in the emergency as well as in the long-range viewpoint. It is legislation which is neces- fary not only to protect the consumer from deception and misnamung of furs, but also to protect our infant fur-faiming industry and honest business from the harniiul and destructive tendencies that flourish when the market place is beclouded by dishonesty, con- 1lusion, and deception which have been al- together too prevalent in the marketing of lur products. LADELING OF MANUFACTURUD TEXTILE FINER PRODUCTS Another area in which thformative label- ing is a matte: of special significance ts that of the labeling of products made in whole or in part of manufactured textile fiber In the past lew years the chemical laboratory has brought to us many synthetic textile fibers with different propeities and character- istics These have found extensive use throughout the tertile industries in clothing, houschold fabrics, and other textile uses. They we woven separately and in blends of one with another, or with the fibers pro- duced by nature, into fabrics of such close simulation to products made of the natural textile materials, such as wool, linen, silk, ctc, as to be indistinguishable by the ordi- Nary purchaser. During the E1ghty-filst Congress a manu- factured ftiber-products bill had been intro- duced in the Senate, known as the Green bill, 8. 283 Although no hearings were held on the bill and 1t had not yet gone through the refining processes which committee scrutiny would bring about, the synthetic textile sit- uation is such that labeling legislation of this general character is needed. The legis- lation should provide appropriate procedures for determining proper nomenclature for the respective new fibers, in collaboration with the industries and trades concerned, and for nondeceptive informative labeling to bring APPENDIX TO THE CONGRESSIONAL RECORD the adequate conten. disclosure to the ultimate consumer. EMENGENCY LEGISLATION FOR SMALL BUSINESS As previously {ndicated, one of our major problems in the mobilization is to provide ways and means of affording necessary pro- tection to small business to the end that it may come through the emergency in a strong and healthy condition, able to offer vigorous competition with larger business. This is es- sential to the future of competitive enter- prise. There are a number of steps which I be- Neve can and should be taken in the emergency to effect the needed protection to small business. We should make, and bring up to date from time to time, a study of the idle capac- ity available in the United States, particu- larly that in the hands of small business, We should also study the idle manpower that is available, particularly in the smaller com- munities. In the light of these studies, we should review the distribution of Govern- ment procurement, of industrin] subcon- tracts, and of order backlogs tor the sake of shifting orders from the overused to the underused fucilities, and from localities where labor is short to localities in which it is more plentifwl. We should examine the size of inventorles and revicw allocations of scarce materials to avold tying up such materials in congested establishments where their turn-over will be slow. We should avoid withholding such materials from plants which could use idle facilities and idle labor in the defense effort. We should set up special machinery for placing Government contracts directly with small enterprises We should use that muchinery also to assure so far as possible that suocontiacts placed by large concerns shall go to small enterprises We should encourage expansion by small enterprises as well as by large ones We should take steps to make available to small concerns loans and tex amortization privi- leges comparable to those that are extended to large compunies that undertake strategt- cally desirable expansion Wherever prac- tical we should encourage expansion in dis- persed smal units capable of being built and operated by small companies rather than in large concentiated unlts which, aside from promoting concentration of economic power, are more vulnerable to attack in tls atomic age We should make production methods and techniques availuble to small companies as fully as possible We should consider a pol- icy of making research grants to small com- panties that have appropriate research facili- ties We should consider requiring that technology which has strategic value and has been financed by the Government be made available on reasonable terms with- out undue restrictions to concerns that will use {t for mobilization purposes. Legislation has been iptroduced in both Houses of Congress for estabhshment of a Small Defense Plants Corp. I refer to H. R 1600 through H R= 1604, and the com- panton bill in the Senate, S 533 This type of legislation, I feel, ts in the right direc- tion and should materially assist us in com- ing through this period of emergency mo- bilization without undue impairment of our free-enterprise system. FEDFRAL TRADE COMMISSION AS AN ARM OF CONGRESS When Congress passed the original Fed. ernl Trade Commission Act, it wisely lodged authority in the Federal Trade Commission whereby Congress may utilize the Commis- sion to make studies and reports to it of antitrust problems and practices affecting our economy or the operation of industry and trade. (See sec 6, FTC Act.) On numerous occasions this authority, which may be brought into operation by joint
APPENDIX TO THE CONGRESSIONAL RECORD resolution of Congress, was availed of for studies and inquiries to aid Congress in its legislative work. These inquiries have brought together the data and the facts upon which Congress has seen fit to legis late in many important respects. For example, at the direction of Congress the Commission made the public-utilities study which entered so largely in passage of such statutes as the Public Utility Holding Company Act, Federal Power Act, and the Natural Gas Act of 1938 Other instances could be cited. Likewise the Packers and Stockyards Act followed upon investigation and studies made of that industry by the Commission. The chain-store inquiry of the Commission preceded passage of the Robin- son-Patman Antidiscrimination Act. I feel that the machinery which Congress, through this committee, has made avail- able in the Federal Trade Commission for conducting large inquiries can fruitfully be utilized in the present emergency to de- velop facts meeded by the congressional committees in their consideration of legis- lation affecting our economy, whether of the emergency type or of permanent character. CONCLUSION In conclusion I wish also to say the Com- mission has alined its work to turnish the fullest measure of assistance possible to the Covernment in the emergency. We wish to be of every assistance to this committee and to the Congress, and we shall be happy to respond to any suggestions which you may have in this respect. Wuy Are We in Danger of Losing the Ideological War With World Commu- nism? EXTIINSION OF REMARKS OF HON. H. ALEXANDER SMITH OF NEW JERSEY IN THE SENATE OF THE UNITED STATES Monday, March 12, 1951 Mr. SMITH of New Jersey. Mr. President, on Washington’s birthday, Thursday, February 22, at Princeton University there was held in connection with the Washington's Birthday celebra- tion a discussion panel on the subject, Why Are We in Danger of Losing the Ideological War With World Commu- nism? Those who participated in this panel, while all Princeton graduates, were at the same time individuals prominent in public life. They were: Arthur Krock, chief of the Washington bureau of the New York Times, and modcrator of the panel discussion; Edward W. Barrett, Assistant Secretary of State for Public Affairs; Allen W. Dulles, Deputy Director of Central Intelligence; William E. Eddy, former Envoy Extraordinary and Minis- ter Plenipotentiary to Saudi Arabia and former special assistant to the Secretary of State in charge of research and in- telligence; Charles D. Jackson, president of the National Committee on Free Europe; H. Alexander Smith, senior Senator from New Jersey. The subject under discussion 1s of such current interest and has such an im- portant part in the pending considera- tion of our foreign policy that I ask unanimous consent that the transcript of the discussion as it appeared in the March 9 number of the Princeton Alumni Weekly be published in the Ap- pendix of the REcorp. I have received from the Public Printer an estimated cost of printing the manuscript which indicates that print- ing the transcript will take one page more than the two pages allowed under the rule without a statement of cost, and that the cost will be $246. There being no objection, the excerpts were ordered to be printed in the Recorp, as follows: Wny Are We rn Dancer or Losina THE IDEo- LOGICAL War Wirn Wortp CoMMUNISM? Mr. Barretr, The question seems to be: “Why are we in danger of losing the idevo- logical war?” My answer to that is that, if we are, it is in large part because we fear we may be losing it. Our greatest risk today is, I think, our own unjustified self-doubt in the people, It is high time that we Americans stopped being so defeatist about military matters and about psychological matters Who says that we are losing the ideological war? The Kremlin certainly doesn’t say it today in Westorn Europe. They are in effect credit- ing us with such success that they are urging the people of Western Europe to believe that their own governments have sold out to us. Don’t misinterpret me. I don't think we ought to be complacent. I think we have a whale of a long way to go. And we will discuss later a preat many things which necd to be done. But the record shows the very opposite of what the apostles of self-doubt and despair are preaching. Let's look back a little bit. In 1947 Eu- rope was in very bad shape us far as public moiale was concerned Communist torces could cnll a political strike in any country they wanted to and tie up Industry and the entire cconomy of the country for an indefinite period. That situation does not exist today. In France today, the Communists haven't been able to pull a major strike in 2 yenrs. They failed in thelr eflorts to block the North Atlantic Treaty Organization and to block the military-aid pregram. Thev flopped badly in their efforts to stage a great demonstration against General Eisenhower. They failed in their efforts to block the un- loading of ships with supplies. In France today the Communist-dominated federation in the labor field has lost two-thirds of its members The chief Communist publication has gone down from 600,000 to 200,000 cir- culation. Much the same sort of thing can be found in other countries in Western Europe. In country after country the Communist vote has decreased very substantially. Even Aus- tria, which is still one-third under the heel of the Soviet army, voted to kick out Com- munist officials The defections of key Com- munist leaders in Italy are significant. Even in the satellite areas, which have been under Soviet control and domination for 5 yeurs, they huve not been able to win over the people despite the most intensive propagunda campaign. Today it is clear that 60 to 80 percent of tho satellite peoples are anti-Kremlin. In the Far East the picture is not s0 rosy. But even there, for complicated rea- sons which we can go !nto later, I feel that the tide, after reaching a very low point, has turned and that there is definite im- provement in the area. In the Middle East and Africa we have a great deal to do, but the situation is clearly better than it was a year ago. ‘We have a great deal yet to do in all of these flelds. We have to get more spiritual lift into the psychological fight of the free world cause. We have to persuade other governments and other peoples to take a A1319 much greater part in this ideological war, We have to step up our own campaign of truth. But I say tn all seriousness that I am con- vinced that the tide has turned and turned very definitely in the so-called battle for men's minds There ts one ingredient that is particularly needed in this battle today— the ingredient of American confidence and faith in ourselves and the future When- ever we show self-doubt, whenever we begin to waver, that fact is reflected around the world and throughout the free world The world is watching us, and we have got to show the courage, the spunk, the moral strength, the confidence, and the faith that we have a rizht to show. Mr Duties Mr. Barrett has very largely stolen my speech from me. I maintain too that we are not now losing the ideological war with communism In fact, I believe that the tide has turned, that it turned about a year ago, and that we are beginning now to see the way it 1s running Stalin and his Cominform have produced no new ideas during the past year, and thero has not been a single Communist conquest in this last year—the only year tn which one can say that since 1946. Bolshevism is checked in Europe It 1s blocked in Yugo- slavia, which is now a thorn in the side of Moscow The defections of the Communists in Italy, where a aplit extsts in the Commu- nist Party, {8 one of the most stenificant events of recent years Every artnele free election that has been held in Europe in the last 5 years has shown a egradunl lessening of Communist strength. And every single controlled election that the Communists have held in their areas has been a preater and grenter farce (the election they held recently in the eastern zone was the great- ert electoral farce that has ever been staged). One of the most interesting develonments is that those pecple who ure nearest to the danger point in Berlin and Vienna are the ones who are stoutest in thelr determined opposition to communism The reason thet some of us fec] that we may be losing the ideological war is that we don't realize the handicap under which we started. It took us too long to realize from 1945 on what we were up against. Like a runner in a race, we had hundreds of yards to make up) I say thet in the last year, par- ticularly in the Inst 6 months, we have made that up and now we are golng ahead. What do we need now to insure victory in that area? I think we need the same type of united action of peoples in this field of ideological warfare that we are now seeing in the field of detense America cennot do it alone We must do {it with our allies. We have an Atlantic Pact in the fleld of defense. What we need is an Atlantic Pact to bring all the free pcoples together in this warfare of ideas and ideals. Great movements in this field, as history shows, have again and again centered around aman Now we have a great leader in Europe who takes over the united com- mund of the forces of the free world in Europe I believe that that same man can help support the united front of the free peoples in the war of ideas. (Because of a temporary break‘lown in the public address system, a complete transcrip- tion of Mr. Eddy's opening rumarks is not available.— Editor ) Mr, Envy. My remarks will be based largely On my observations in the Arab wuld * * © the only part of the world * * * that fs still not definitely in anybody's pocket. It is safe to say, with some pride, that what work we have done in this field 1s heing done largely by Princeton men Not only our * * * and diplomats but also mis- sionaries, educators, and doctors have beon Princeton men and we can be proud of them. Unfortunately there ts a tendency to be- little the Near East as a vacuum. * * * They forget that 4 vacuum has o terrific
A1320 suction power and the wind is blowing over there with some velocity. I don't like to be a Cassandra in this war of ideas. We have a 100-year record of American philanthropy, education, and medical work and friendship of the Govern- ment. It ts a clear record, but still we are in danger of losing the war there for other Teasons. First is our failure to define the proper target. It is communism or Russinn ag- gression? The same front page of the paper acclaims Senator McCarruy’s attacks on communism and acclaims * * * Tito. We have to appeal to the bulk of the people of Asin and inform them of our liberties. * * * We must Invite to our camp meetings all the angels and devils who are willing to fight against Russian aggres- sion. Secondly I think we would do well to stop serving the middlemen—and speak with our own voice of our own business. Too fre- quently we have served the tnterests of col- oniziag powers and have regarded their actions as an extension and ratification of our policy. This is not appreciated by the people who live in those countries They would like to feel that what is happening in Korea is happening for Korcans as well as for the world. There was consternation in imperial circles when FDR met Ibn Saud exactly 6 years ago this week. * * “* Frantic measures were taken by Churchill and the Foreign Office to cancel the effect of this interference with the British preserve One of the greut items of loss in the death of FDR may prove to be that he did mot live to establish the natural precedent of direct dealings with these people of the Near East. Third, I think we should talk of joint de- fense and not in terms of occupation of our own forces. We should offer to help Asiatic peoples to defend their own lands. * * * Let us not talk about aid and hand-outs and taxes. We are doing these things for our own defense. * * * It 1s appropriate to say on Washington's Birthday that Lafayette was welcome in this country and is pleasantly remembered be- cause he came to help George Washington save this country Lafayette did not come to demand in perpetuity a French base on United States soil Finally, if we are going to win this war, I think we would do well to engage in per- sonal Warfare as well as modern arms Vice torles on the Korean battlefield have less significance on the Korean than on us” I should not like to see a plebiscite in Korea taken today. Twenty million friendly Egyptians would make the Suez Canal much more secure than 20,000 Egyptian soldiers there against the will of the Egyptians Singapore fell in a very few hours when it was isolated be- cause across the water natives were no longer friendly So will Hong Kong and Jupan fall tomorrow. * * * The significance of using Darlan in the North African landing was not only to make the landing less costly in lives but the tact that Darlan ordered them to lay down their arms and made it unnecessary for us to police and occupy all of North Africa. We could turn ourselves directly against a com- mon enemy. The Wost cannot hold down these mil- lions of Asians by planting a few soldiers and forts every thousanc miles as the British have done for 300 years and still think can be done today. The alinement of these Asians in the war will be determined by the people of Asia and by nothing else. Unless they hate Pussian domination, our cause is lost. Mr. Jacwson. I believe that Messrs. Barrett and Dulles were gratifyingly hopeful, but I am ufraid that they may have been just & trifle misicadingly hopeful about the way things stand right now. The last part of Colonel Eddy's talk, I belleve, put very forcefully sume of the real dangers that still face us in the world. We still could lose this ideological wur The most that we can be happy about today is that pussibly we have fought this battle of psychological wartare back to the thirty-eighth parallel. We certainly haven’t crossed it, and unless we do, we just aren’t going to win it. The ingredient that is going to make us win it is fanaticism. The outstanding char- acteristic of the enemy, the world enemy, both in his own country and wherever he is operating, including this country, is his fanaticism. We have got to have our own fanaticism itor our own cause, but more important and even more difficult, we have got to instill fanaticism for our cause in a lot of doubtful friends and even more doubtful on-the-fencers. It doesn't do us any ¢ood in this country to work ourselves into a feverish lather unless some of that Jather can be communicated to the French- man, Italian, Korean, Chinese, and others all over the world. Their fanaticism has got to be part of our struggle. Psychological warfare is a very peculiar animal. To oversimplify it greatly perhaps, may I point out a reason why we are hav- ing such difficulty with it, the fact that it is all so new to this country. Prior to the fall of France in 1940, this country just simpiy did not know that it had to be in the psychological-wartare business. We pat in the movie theaters and giggled at the Gocbhels, the Mussolinis, and the Hitlers. It just wasn't our kind of stuff and they were not our kind of folks Gradually we began to realize that we had to get into what we then called the information busi- ness. Another odd thing about this psycho- logical-warfare business 1s that we visu- allze and think of Russia as a monolithic, solid, ponderous bureaucratic outft, where there is no maneuverability at all. Every- thing finally has to go back to Joe Stalin for decision, and then it goes out Into the world, into the various tentacles of the sys- tom. Interestingly enough, the Russians seem to have all the maneuverability and we have much less maneuverability. We are really so self-conscious about this new “dirty tricks world” thut we are always looking around to some secretary or other or to some boss or other to see if it Is O. K to do something And all of us in this game are trying to do exactly the same thing at the same time to everybody everywhere, And that isn't the way the war 1s going to be won We have to have flexibility und maneuverability; and if a message or idea of psychological warfare is applicable to the French, that does not mean that exactly the same thing has to be applicable to the Yugoslavs. The three big ingredients of psychological warfare are (1) money, (2) no holds barred, and (3) no questions asked I look to my great pal and colleague, now Assistant Secre- tury of Stute, Edward Ware Barrott, and ask him if he feels quite free on the no holds barred and no questions asked. The poor guy is just in a terrible swivet all the time. Yet of all the incumbents who have held that post, with the strait-jacket factory in the next block, I think he has done the most absolutely extraordinary job. When you see anything adverse about the Voice of America or Ed in the press, take it from me “it ain’t s0" He is doing a terrific Job under condi- tions which are absolutely insupportable. There is an important job to be done, and no one way of doing it. In this labyrinth that we are in, there is just one thing that is absolutely sure: that if world war III is to be avoided without appeasement, psycho- logical warfare ranks on a par with dynamic diplomacy and the defense effort as an out- standing weapon. APPENDIX TO THE CONGRESSIONAL RECORD Senator SmiTH. Are we in danger of losing the psychological war? I think we should accept the fact that we are in danger of losing it. Although in saying that I want to pay the same high tribute to my friend Ei Barrett that C.D Jackson has just paid him. He has done a magnificent job, but I believe that he has an enormous job ahead of him stall to do. As I have studied this problem and, as & member of the Forelgn Relations Committee of the Senate, I have been dealing with the war side as well as the psychological side of military defense, I agree with Mr. Jackson that ideological warfare, this battle for the minds of men, is just as important if not more important than military preparedness. Unless we can win the battle for the minds of men, the other war might well be lost The reason we are in this difficulty, as I see tt, is that the Russians, by their very astute propaganda, have tended to isolate the United States from the rest of the world be- cause of their particular hatred of us. They have tried to present a picture to the world of a confilct between, on the one hand, Rus- sian communism which js aimed at helping the poor downtrodden peoples to be liber- ated, as aguinst what they call capttalistic, imperialistic, wealthy America. The issue is totally wrong and we all know it But they have been very successful in convincing an area of the world that 18 not as tamiliar with us as possibly some of the western part of Europe is. May I illustrate this point by telling about a session that I attended in Dublin just this Jast fall at the Interparliamentury Congress, where we had representatives from 40 na- tons Part of the program called for each nation tu state his case before the rest of us That show was stolen by the representatives of the Far East, who said to us: You western powers are missing this picture, because we don’t understand practically anything that you sre talking about. You have to tell us what you mean more effectively, more practi- cally. We can't understand why you are throwing surplus away when peuple are starving in other overpopulated areas of the world We don't want to become tools of the Russian Communists, but we are in dan- ger of having our people pull us there, be- cause of the great promises which these peo- ple are making And you're not meeting that issue. I was shocked I felt that I shouldn't re- sent their stutements I knew it wasn't true, but T realized that we hadn’t sold them the big Issue before the world, and that we had to do it almost Immediately. That issue is simply this. That we who have inherited the traditions of human freedom from our an- cestors who came over here~—freedom of the press, of religion, of free speech— have not made it clear that that is the big issue of the world, as opposed to totalitarian strength, An atheistic Marxism as opposed to the west- ern traditions of freedom under Almighty God. That is the Job we have to do If wo can once get to the world that this is the issue they'll take it I haven’t the slightest doubt that they'll take it. The question is how? May I suggest that the way to get at it is the way that Colonel Eddy suggested a min- ute ago We have to spearhead a missionary crusade of people who are willing to go to these countries and do what the Russians have done The Russians sent their scouts into these countries before they tried to do anything else to find out the cause of unrest and dissatistaction, and to show how they, with their communism, would meet those needs uf unrest and dissatisfaction We have got to do exuctly the same thing We have got to go Into those countries with a crusade and understand what the people’s problems are on the ground—to find out what they are, and then indicate, by the proper method of
APPENDIX TO THE CONGRESSIONAL RECORD missionaries, educators, and other people, that we are prepared to sell our traditions of freedom on that basis. I haven't the slight- est doubt that if we can make that approach we can win this war. We mustn't be isolated as the one cham- pion of freedom, whatever that might be, to people who don’t understand it. They are weighing whether it would be wiser to get under the fron curtain or take the American side in this contest, and some are saying that they think it might be better to be neutral. How can anybody be neutral when the tssue is freedom against slavery? That ts the thing we have got to get across. I think we are doing it; I think Ed Barrett is moving into tha. area But I can’t empha- size too strongly the need for this living mis- sionary crusade to tell the people of the world the kind of freedom that ou: ancestors gave us. They fought, bled, and died so that we would have what we have in this country, and what the western nations have. We mustn't be left isolated. We must be willing to say that this freedom is the freedom of the west- ern nations, I have said to Ed that I wish we could change the Voice of America, much as 1 honor that, to the Votce of Freedom, to the Voice of the Free Peoples of Asia, of Europe, of Scan- dinavian countries, of Switzerland, of any area of the world that ts free, and kecp that voice going, going, gotng until the issue fs clearly stated and understood. Mr Krocx Mr Barrett, in connection with defeatism as a danger, do you think that a tendency to emphasize the faults in our sys- tem to the young rather than to emphasize a feeling of pride in our achievements, an attraction to professtons of idealism under other systems, had something to do with the creation of this symptom? Mr. Barrerr. I suspect s0, I think domes- tically that the tendency to examine our own faults is as healthy as it can be. Over the long pull it is one of the things that make us strong. But I think that in times of national danger like this we had better stand off and look at the country and realize how well we have done 1 think that we should look more at the plus side, less at the nega- tive side, and realize that we as a Nation have made tremendous progress inter- nationally as well as nationally We only got to our present role in world affairs at the time of the start of lend-lease and through the last war. Since then has come the Marshall plan with all that it did to bolster morale of Europe. We don't realize how much progress we have made and how much ground we have for a feeling of confidence, pride, and de- termination. We should show more ot this side to the world, and less of the side of self- criticism and squabbling among ourselves, Truth is an extremely powerful weapon. We are now beginning to reap the dividends from the fact that we are belleved, because we have stuck to the truth in our official propaganda output, whereas other powers are not believed. That has become particularly apparent in the last 6 months. The Soviets put on an enormously intensive campaign to try to prove that we were the aggressors in Korea. That campaign has failed dis- mally in most of the workd, and it backfired badly because tt prcved to millions of once- credulous people that the Kremlin group was @ group of incredible liars. The fact that we had built up credibility for the Voice of America and other official channels of the United States has paid off, is paying off, and will pay off. The truth can be used to build up confidence, “spunk,” and determina- tion in the free world. The truth can be used to enlist a really enthusiastic desire for cooperation with us in the cause of the free world. The truth can be used to under- mine and disprove the Soviet lies in other free nations. The truth can be used to erect barriers against further Communist aggres- sion on both sidss of the iron curtain. The truth can be used to build up a spirit of resistance, On the strait-Jacket point, I admit that It {s difficult to carry on an information service within the structure of the United States Government, bound by all United States Government policies. But as far as the ofi- cial Voice of America ts concerned, I don’t know how it could be otherwise. The Voice is going to be interpreted as the official voice of America regardless of where it is located in Washington, and what it says is going to be interpreted as a commitment of this Governinent wherever it 1s located. There has been a healthy recognition of possible limitations of this situation in the organization of a committee for free Europe by a group of private citizens, which is not an official voice of the Government. One of the great things that has happened in that fleld is that a number of individuals have put the heat on C. D. Jackson to per- suade him to take over that very dificult job. There is nothing more healthy in the entire psychological-warfare field than his appointment. Senator SmirH. Mr. Barrett, there is an- other part of your work—the exchange of students between countries—that I have been interested in for many years. It fur- thers the idea of giving others personal con- tact with our own people here. Could you tell us how that is developing? I am sure this audience at Princeton would be glad to know more about it. Mr Barrerr. There has been no more out- standing champion tin the entire field of ex- changing persons than Senator SmitH He has been a pioneer in the field and a con- sistent supporter. I am convinced, after some skepticism, that it does pay off, and in a big way. We are seeing proof of it right now in many parts of Latin America. Students brought here 10 or 15 years ago are now emerging in positions of leadership. We have seen how Latin American countries have placed their confidence tn this country, are all work- ing together in the UN, and so on. That program is moving along at a rapid rate. There will be about 8,000 persons ex- changed between this country and othera within the next year. There tg one shift in emphasis within the program. It is a shit to leadership groups, including student lead- ers, to people who are in touch with a great many ind!viduals—edltors, labor leaders, and so on. That shift was made because we ob- viously reap quicker dividends from that kind of group than from concentration on the others There are those who say that this kind of program is only long-term in its cffect. I deny that. One quick illustration. There 1s today in Germany a young Jabor leader, who made a trip here 8 months ago. He addresses audi- ences throughout Germany and starts each speech with these words: “When I sailed into New York barbor, I sneered at the Statue of Liberty as an empty symbol; when I sailed out 8 months later, I bowed to the old lady because I found she really stood for some- thing fine ant decent and strong” That 1s the reason for my enthusiasm for that part of the program. Mr. Jackson. The student exchange pro- gram is absolutely right. One of the basio criticisms that oan be leveled at American propaganda is that it is frequently not on the human level. There are geographical reasons for that; it is very difficult to be hu- man via a microphone and a radio wave. But whenever we can get on the human level—an American to another human be- ing—we score 100 pointe just automatically, The more of it that can be done the better. If the Fulbright funds are ever in danger of being extinguished, I hope that Senator Smirn sees to it that they are replenished A1321 mighty quick. All of that activity is splendid, because it is human. Mr. Eopy. We have got to get more people telling the truth on our side, all the dope hends and all the peddlers and all the cute throats who hate Russian domination. We need Franco and Tito and Mao and all of them, and we can’t tell them apart by the color of their eyes. Mr, DULLES, We are not really novices in this fleld. I go hack quite a long way, to World War I, when a great Princeton presi- cent, then President of the United States, was & master in this field. I happened to be at the other end of the line in Berne, Switzer- land, during the build-up of psychological warfrre when truth and tricks were mixed together. Wilson, in uw masterful way, was able to divide the Kaiser and his military leaders from the German people. Before the radio and all the modern gadgets of inter- communication with peoples, he was able, by the use of this wexpon of psychological war- fare, to bring the First World War to a close when the German armies were still intact on French soil, How did he do !t? He did it because he was uble to divide and conquer, to show the German people that they had nothing more to fight for, and they gave up thetr support of the armed forces in the field. The 14 points and his negotiations brought the war to n close when the fighting forces were still intact. I think that is certainly the most masterful achievement in the fleld of psychological warfare in this century. We can use the same tactics today. Those 12 men in the Kremlin can be divided from the Russtan people, and they can be di- vided from the satellites, from the people of the satellite countries. One of the most able moves in the field of psychological ware fare came the other day from Yugoslavia (and: revealed that maybe our Communist friends will be able to help us, too) when Tito poluted out that Stalin was a retro- grade, that Stalin was no longer the one that had a right to speak even for come munism There we have ea wedge driven. We have many other ways in which we can drive a wedge between the rulers and the satellites and the people whom they op- press. We can go back to Woodrow Wilson to help us do it, Mr. Jackson. In Ine with this extraor- dinary kaleldoscupe of truths, half-truths, and untruths, if anyone tn this audience were suddenly asked to step up to one of Ed Barrett’s microphones (or one of the Radio Free Europe microphones) and speak to all of these countries, how would you desciibe the enemy? ‘You would have a perfectly ter- rible time. Would you say it js the Krem- lin, the Politburo, communism, Stalinism, Marxist-Leninism, totalitarianism,  etc.? What the people in this racket have got to realize, and what you have to realize, is that we must be terribly smart. We have to be smarter than we have sometimes been in the past. If you decide for instance to at- tack Stalin’s Russian imperial tyranny, that goes for Yugoslavia, but if you start open- ing your mouth shouting just communism at the enemy, you can’t say that to the Yugosiavs We expect those Communists possibly to die for us this summer. You cannot, out of one corner of your mouth, say, “Get in there and fight, boys,” and out of the other corner of your mouth try to de- stroy communism to the Yugoslavs, It’s a terribly complicated business. Mr. Krock In this morning's newspaper (the name of which I shall not mention) was a dispatch from a British correspondent in India who had just been in China. He describes Mao Tse-tung as follows: Though he takes long views, he is nonetheless a firm believer in what he calls Marxist-Leninism. He will accept coalitions, he regards some of Chang's capitalists as his present friends, he