A3134 gas warfare, in all probability, deterred the enemy from their use. So, let us be ready to defend ourselves— our country, our homes, our industries, and our democratic way of life—with all the weap- ons at our disposal. Do not forget, however, that during the recent conflict we had time to prepare. We won't have time again on our side. If, despite the grace of the Almighty, the cold war should become hot, we must be prepared to combat whatever weapons are directed against us. And that is the reason for our unique mis- sion in the unconventional fields of warfare. MISSION AND OBJECTIVES The mission of the corps can be explained in very few words Our over-all mission is to study and to investigate all phases of chemical and biclogical warfare and radio- logical defense. We are responsible for pro- viding technical supervision of Army-wide training in these fields. We are also respon- sible for developing, manufacturing, procur- ing, and supplying matériel and equipment pertaining to these types of warfare, except for any function which has been assigned to other agencies. However, it is the technical objectives in each of these fields which we are primarily concerned with this evening. Now what are these objectives? I will clarify each one as we go along. Our technical objectives are assigned by the Research and Development Board and the General Staff of the Department of the Army. This Board coordinates the over-all projects of the Department of Defense, and assigns a priority to each objective. Within the over-all program of research and development labeled A, B, C—atomic, biological, and chemical—warfare, the corps is developing agents, munitions, materials, and techniques as defense against these highly toxicological forms of warfare. Since these fields are similar in many respects, the efforts in each field are closely integrated in the interests of economy and efficiency. Our primary aim is to develop materials and tech- niques which are common to all fields when- ever possible. RADIOLOGICAL - In the field of atomic warfare, the Chem- ical Corps has primary responsibility for de- veloping defensive measures against the use of atomic weapons and radioactive materials. These could be used by a potential enemy to produce death or casualties in man, animals, or plants, or to render areas uninhabitable through the ‘use of such weapons. The Corps has undertaken three separate research and development programs in this field. First, the development of chemical means of detection and measuring radiation; second, the development of decontamination procedures for use in case of atomic attack; and third, development of individual and collective means of protection against atomic attack, Security regulations, however, prevent a more extended discussion of this particular field. I might mention in passing, that the Corps is offering extensive training in radio- logical defense to all members of the Depart- ment of Defense team. The recent disclosure that atomic energy can be released by other nations has placed increasing importance upon this part of our program. BIOLOGICAL In the fleld of biological warfare, or BW as it is popularly known, the Corps has been. assigned full responsibility within the De- partment of Defense, for all research and de- velopment projects. Our primary objective is to investigate all methods and equipment which can be used by a potential enemy, of Hving organisms, toxic biological products, and chemical- plant regulators to produce death or casual- ties in man, animals, or plants. Our work in this field consists of research end development on new and improved nc eds o, cmulysiys and detection, decon- tamination procedures, and the protection of personnel, animals, and plants against these agents. At the present time, educational institu- tions and scientific research centers are also conducting research in this field under spe- cial contracts with us. In addition, the Air Force and the Navy are continuing their war-time collaboration with us in these fields. The United States Public Health Service, the Department of Agriculture, and such na- tional organizations as the Red Cross and others maintain close watch on public health statistics which may prove of value in the study of civilan defense aspects of BW. Now, what are we accomplishing under this program? Basically, our research includes identifying every type of disease-producing germs which could possibly be used to spread disease and infection among the civilian population. This also includes those organisms which could be used to deplete our food stocks and meat supply. In this connection, I would like to point out that many of the popular articles ap- pearing on the subject of BW, have been inaccurate, misleading, and highly sensa- tional. One article, for example, states that 1 ounce of a particular biological material could kill 200,000,000 persons. Such fantastic statements have no factual basis in the light of present knowledge. It is not even certain that an epidemic of signiti- cant proportions could be produced at will. Despite these conjectures, certain very basic steps have beon developed in civilian defense measures for the control of natural outbreaks of disease and the protection of our crops and animals. These measures include the prompt iden- tification of BW agents, adequate public- health measures, and proper sanitation con- trol procedures to limit the spread of such agents. Prompt medical treatment should minimize their effects. Now what does this mean? Let me illustrate by an example. Many of you may recall that in the spring of 1947 a Mexican visiting New York City died in Bellevue Hospital of smallpox. Nine more cases and two more deaths from this same disease were reported shortly thereafter.. The public health authorities of this sprawling metropolitan city of over 11,000,000 persons took immediate precautionary steps to check and prevent further spread of this disease. Within a month more than 6,000,~ 000 persons received smallpox vaccination. As you can easily surmise, the disease was promptly checked. Here is a concrete example of coordinated action on the part of public health authori- ties and the military which supplied much of the serum. In wartime such an outbreak could be the result of sabotage. Lack of preparedness in this fleld could cause entire cities to be laid low. To be pre- pared for any eventuality is, therefore, one of the primary objectives of this program. By contrast, let us see what measures have been developed for the protection of our food and meat supply. Extensive research has been carried on in these two fields since disease-producing or- ganisms could be easily spread by sabotage. To counteract this possibility we have studied the effects of thousands of biological and chemical agents. We have recorded their effects on the growth of plants, on checking obnoxious diseases, and on increasing the productivity of the soil. With respect to our meat supply, a joint United States-Canadian commission has achieved significant results in the control of livestock diseases of importance to both countr ex, We have established the im- munity of livestock to certain biological APPENDIX TO THE CONGRESSIONAL RECORD agents. Great advancement has also been made in the treatment of certain infectious diseases of cattle. These measures, as you can see, are all de- fensive. They must be made in advance of any possible use of biological warfare agents by a potential enemy. It is only in the con- tinuation of our research in this field that an adequate defense against their use can be assured. CHEMICAL In the field of chemical warfare, our ob- jectives are to carry on research and develop~ ment on new and improved methods and techniques of toxic and nontoxic chemical warfare. It is the considered opinion of many ex- perts that toxic warfare was not employed by the enemy, during World War II, largely because we were so well prepared to defend ourselves against its use, and to retaliate, Let us not overlook the significance of the Axis’ failure to use this form of warfare in spite of their careful preparations, During the Nuremburg War Crimes Trials, Admiral Speer, the German war production expert, testified that two of the newer Ger- man war gases were still being produced as late as November 1944. The Japanese ceased war gas production in September 1944, but only because they relied upon the Allied pledge not to initiate gas warfare There is no doubt in my mind that the Axis knew our capacity for meeting any chal- lenge in the chemical warfare field—and re- fused to accept the gauntlet. That we were so well prepared is due in large part to the supreme industrial efforts of the chemical industry which you gentlemen represent. With respect to further work in this field since World War II, it is a well-known fact that many German scientific experts on toxic chemical warfare are being exploited by Soviet Russia. It must be assumed, therefore, that we are not the sole possessors of the offensive and defensive secrets of the new nerve gases. Our research in this field is directed to- ward keeping us abreast of the laiest de- velopments. We are seeking to perfect all methods and techniques for the detection, decontamination, and the protection of per- sonnel and animals from these new agents. The incendiaries, flame throwers, and screening smokes so widely used in smash- ing the enemy on all batilefronts of the world, were often vital in the successful prosecution of the war. The sterling con- tributions of your industrial organizations materially aided the corps in accomplish- ing its world-wide mission, and are now- part of the corps’ official history. We are continuing to make considerable progress in the development of new materials and techniques of nontoxic chemical warfare. Now how do we publicize the findings of our scientists in these flelds? Chemical Corps policy permits our scien- tists maximum freedom in the publication of their research findings within the limits of military security. They are encouraged to present abstracts of their work to the scien- tific world. Their talks and papers are pre- sented before military, scientific, and educa- tional bodies, associations, and other in- terested groups. Their articles appear in the leading mili- tary, scientific, and industrial publications. All these groups thereby collaborate in dis« seminating, for the bencfit of the entire Na- tion, as well as the scientific world in gen- eral, the combined results of military, sclen- tific, and industrial research. To date, for instance, over 200 papers on biological war- fare alone, have been cleared for publication. EVALUATION OF RESEARCH AND DEVELOPMENT PROGRAM This examination of our mission and the technical objectives of our research and de- velopment program would not be complete unless we evaluated it.
APPENDIX TO THE CONGRESSIONAL RECORD I could sheot off a lot cf words about how important the program is to us. But it would not mean much to you gentlemen, who have heavy investments in industry, unless we spoke in terms of dollars and cents. Since VJ-day, we have spent increasing sums on this program. In 1946, for instance, the first year following wartime cutbacks in this field, we obligated more than $6,060,000, or somewhat over 10 percent of the corps’ total budget. From 1947 to 1949, these obligations rose to more than 33 percent of our total budget. In this fiscal year of 1950, we plan on obli< gating over 39 percent, or more than $12,- 000,000 of our total appropriations to carry out the corps’ research and development responsibilities. A substantial portion of these obligations is, as you gentlemen know ch'ected under various types of researches i"ic *. -h your research institutions and industrial organi- zations. You can visualize the tremendous impor- tance we place on your continued collabora- tion in assisting the corps to meet its ob- jectives, But research and development alone would be worthless unless coordinated with our industrial and mobilization plan- ning responsibilities, INDUSTRIAL MOBILIZATION Industrial mobilization became a separate program under the jurisdiction of the Muni- tions Board by the provisions of the National Security Act of 1947. The program is primarily concerned with the allocation of industrial capacity on a priority basis, to all members of the Depart- ment of Defense Team. Operating Annex No. 47 of the Munitions Board Manual en- titled, “Allocation of Private Industrial Ca- pacity for Procurement Planning of the Armed Services,” governs such allocation. These documents have been given wide distribution by the Munitions Board and I am sure that you gentlemen are familiar with them. Comprehensive policies established by the Board, are set forth to govern every phase of industrial mobilization and pro- curement planning. These policies govern the distribution of industrial capacity, when it is converted to war production, among the several military services. Through advanced planning, the Board hopes to assure the most effective utilization of the Nation’s resources in an emergency. The outstanding features of the plan are the standardization of specifications and the allocation of purchase authority of technical equipment and end items of common use. These are to be procured by a single agency, or purchasing authority. In other words, the Chemical Corps would be authorized to procure all items for chem- ical warfare under these regulations and policies. Such procurement authority would include procurement of chemical warfare material for all branches of the Army, the Navy, and the Air Force. The industrial mobilization plan of the corps seeks to assure for the corps certain definite levels of industrial production ca- pacity to meet the corps’ requirements for any future M-day. Our limited arsenal production will enable us to carry the ball until industry converts to war production. Industry then carries the ball augmenting arsenal production in accordance with our procurement planning program. PROCUREMENT PLANNING Our procurement planning program has been set up to meet the corps’ obligations for definite levels of supply and equipment. These will be required for the execution of the corps’ responsibility in the over-all stra= tegic plan of the Joint Chiefs of Staff. Re- quirements are computed on the troop basis for mobilization. It must be pointed out, however, that the Munitions Board is not making any definite allocations of private industrial capacity at the present time. It is, therefore, up to the technical services and allied industries to get together in preparing joint plans based on past experiences and procedures in the solu- tion of common problems. Now what does this mean to the indus- tries which you gentlemen represent? First, let us examine the varlous categories set up by the Board; and secondly, what part of the Corps’ budget is being set aside to carry out this planning? The entire field of industrial mobilization and procurement planning is broken down by the Munitions Board into four main cate- gories. These are (1) maintenance of stand- by plants; (2) acquisition and maintenance of machine tools and manufacturing equip- ment which are difficult to obtain in an emergency; (3) planning studies and pre- paredness measures undertaken by industry, through special contracts, to develop, or pre- serve industrial know-how; and (4) planning within the Department of the Army. The cataloging and standardization of spare parts program 1s also considered an integral part of the foregoing. The Chemical Corps has expended increas- ing sums on its part of the over-ail program which was established as a separate project, under its own appropriation, in 1947. In 1948 for instance, we obligated almost one and Tarte aicrtes -lion dollars; in 1949, more wit. “Wo wLll.c, seven hundred thousand. For this fiscal year 1950, we have an cstimmated obligation of over $4,000,000 to carry out the corps’ procurement planning respons: bilities. ACCOMPLISHMENTS Now what are our accomplishments to date? I will touch on only two of the main categories to give you some idea of our over- all progress in the plan: Categories 2 and 3, Under category 2, we are holding in reserve machine tools and manufacturing equip- ment with an estimated value of almost $20,000,000. ‘These reserves comprise ap- proximately 10,000 items of special produc- tion equipment, in addition to 31,000 items of inspection equipment. . These items must all be preserved in a serviceable condition for immediate use in an emergency. The corps is, therefore, con- tinuing a program of inspection verification, preservation for storage, and periodic sur- veillance of these items. Under category 3, “Planning studies and preparednes; contracts with industry to pre- serve industrial know-how,” the corps is seeking to solve one of its most difficult pro- curement problems. . Many of you gentlemen know that over 90 percent of our items are strictly military in nature. They have no civilian counterpart. In some cases industry has never produced any of our newly developed items. Others have never been produced in the quantities required by the mobilization plans of the Joint Chiefs of Staff. To meet our responsibilities in this con- nection, we are maintaining preparedness contracts with industry, in order to preserve and to further develop, industrial know-how as contemplated by the Munitions Board. These contracts, whose limits are set by regulations, are of three types depending upon the degree of progress in the over-all plan. Phase I contracts are of the general ex- ploratory type by which industry conducts general exploratory work on an idea for the corps. Phase II contracts involve a more advanced stage in which planning, engineering, and development of an idea are initiated. Phase III, or the education production contract, involves the limited production of an item in pilot plant models. Thus, the over-all picture involves the preparation of manufacturing floor plans, plant layouts, and flow sheets. It includes assembling operational data on all elements A3135 of production from the receipt of raw ma- terials to the final packaging of end items. Through these preparedness contracts, we are obtaining vital production know-how. By means of these preliminary investigations, we are able to plan and prepare with industry for future emergency production. I would like to emphasize at this point, that our industrial preparedness measures with industry have already reduced produc- tion lead-time, on some items, by many months. We hope to reduce this lead-time still further. CHEMICAL PROCUREMENT DISTRICTS How do we administer the program and maintain contact with industry? The corps’ industrial mobilization and procurement “rrrirs’ y= ygram is admunis- tered through + y ¢ :e7_.°/ 1 procurement dis- tricts with headquarters in Boston, New York, Atlanta, Chicago, Dallas, and San Francisco. These districts are responsible for all in- dustrial mobilization and procurement plan~ ning functions within their respective areas. Although their functions are purely advisory at the present time, they will become active procurement districts in an emergency. These offices maintain contact with indus- try on procurement planning activities of the corps. They collaborate with industrial- plant managers in the preparation of produc- tion plans for the manufacture of specific items in designated plants. These plans cover the procurement of end items and of subassemblies and other component parts of Chemical Corps matériel for use in our manu- facturing arsenals. These districts also assist in the adminis- tration of our various types of procurement planning contracts. Right here I would like to call your atten~ tion to the fact that it is not necessary to contact any middlemen to do business with the corps. You can get all the information you need by contacting us directly. If any of you gentlemen should desire in-~ formation regarding our procurement plans within the jurisdiction of the Chicago chem- ical-procurement district, comprising 13 Midwestern States, please direct your in- quiries to the commanding officer of this district at 226 West Jackson Boulevard, Chi- cago 6, Ill. That office is responsible for all procure- ment and procurement-planning functions within this area. If any of you gentlemen are from other sections of the country, please contact your local chemical-procurement district office, or drop a line to the Chemical Corps Pro- curement Agency, at Army Chemical Cen- ter, Edgewood, Md. They will be glad to furnish you with all the desired information. If any of you would like to contact me in Washington, my door is always open. I will be giad to welcome you at any time. CIVILIAN ASSISTANCE I would like to extend my thanks at this particular point to all those scientists and technologists assisting me in carrying out the many responsibilities of my office. As I previously stated, I am not a scien- tist. I am a field soldier appointed to doa tough job. I need your advice and assist- ance, and I encourage your further collabo- ration. I wish to extend my sincere thanks to the board of directors, to Dr. Walter Kirner, and to other members of the committee advisory to the Chief, Chemical Corps, and to the members of all the committees of the Ameri- can Chemical Society. I would like to as- sure you that I am familiar with the extent of your aid to the corps since its creation as a permanent branch of the Army in 1820. I also wish to thank Dr. W. Albert Noyes, Jr., former chairman, and Dr. H. F. John-~ stone, present chairman of the Research Council of the Corps, as well as other com~ mittee members, for their splendid and con- tinuous cooperation,
A3136 I believe that our example of seeking to achieve common goals in joint endeavors could very well serve as a model of unifica- tion between industry and the military serv- ices. It is my personal feeling that in these com~ mittees I have a group which can deal effec. tively with all phases of our unconventional fields of warfare, and that they can serve as the nucleus for rapid expansion in an emer~ gency. SUMMARY In summing up this over-all survey of the Chemical Corps’ program, I have attempted to point cut the various aspects of the uncon~ ventional fields of warfare which are our re- sponcibility. We have looked into the research and de- velopment and industrial mobilization and procurement planning programs. We have also examined some of our accomplishments. But this is just the beginning of our efforts, for our joint endeavors must be aimed at solving our common problems for mobiliza- tion readiness. « ‘When, and if, the potential threats to our security become active, there won't be time to prepare as in the past. Our mobilization readiness requires, there- fore, intensive planning between industry and the corps to assure the rapid execu- tion of our mobilization responsibilities. It likewise requires full knowledge on the part of industry as to where it fits into the over~ all program. In an emergency, industry must be ready to shift immediately from peacetime opera- tions in order to guarantee its allocation of raw materials, and to prevent its labor force from being drained away to essential production. In the final analysis, the very existence of your organizations may depend upon your mobilization preparedness. On the basis of past experience, I know that you members of the chemical industry will do your share in assisting the Chemical Corps to accomplish its mission. Preparedness of both industry and the military is a tanglible form of insurance in this highly scientific day and age. Our pre~ paredness plans may one day prove to he the deciding factor in maintaining our demo- cratic way of life. ‘ Them Good Old Horse-and-Buggy Days EXTENSION OF REMARES oF HON. WILLIAM G. STIGLER OF OKLAHOMA IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. STIGLER. Mr, Speaker, a few days ago I received an original poem from one of our former colleagues and my very good friend, the Honorable Jed Johnson, who represented the Oklahoma Sixth Congressional District for many, many years with distinction. He is now rendering outstanding service as one of the judges of the United States Customs Court of New York City. As part of my remarks, I include his poem entitled “Them Good Old MHorse-and-Buggy Days”: THEM Goop Otp Horse-Anp-Bucey Days Often I think of the modest farm home, Down in the heart of Texas, Of my pioneer parents going there alone, Thoughts of their courage perplex us. In their first twenty years, Amid laughter and tears, Ten brats to their union they bore, With crop failures and droughts, And ten hungry mouths, They kept the old wolf from the door. Ours was a simple way of life, Back in the days os old. Though crowded for room, Tl.ere was little strife, We were happy without silver or gold. For movies we had God’s sunset rays, For television an evening star, And in those horse-and-buggy days, No question who drove the car, No scary radio skit; of nights, No crime plays filled the air, No modern homes nor electric lights, No Bergman pictures there. Though things were not so very fine In the days of yes-ter-year, The kids all hit the hay at nine, No atomic bombs to fear. Foz country lads there were loads of fun With a coon-hunting dog and a big shotgun, We had scads of things not seen in town Like pecans and walnuts thick on the ground. Like old Chambers Creek brimming full of fish, Like a fine swimming hole, all a boy could wish. Like birds and squirrels chirping away at me, Like a rabbit or a possum in every hollow tree, Like wild blackberries growing all around, Or like finding a bee tree while clearing new ground. Like wild grapes covering the old hackberry tree, Yes, ’twas a wholesome life and how carefree! For readin’, writin’, and ‘rithmetic, To a one-room school we went. If the teacher had no hickory stick For an elm or willow he sent. To the Johnson home no liquor came Yor dared we take a cigarette, To drink or swear would blight our name, The thought lingers with us yet. The Bible was our daily guide, Our motto the Golden Rule. Although ’twas most an hour’s ride To church and Sunday school, The Johnson clan was there on time, Excuses did not avail, Though we be ill or feeling fine, The Lord we could not fail. Could I turn back the hands of time And be once more a lad, I’d choose the same sweet Mother o’ mine— Also the same dear Dad. No bonds or stocks or cash they left, Except sweet bonds of love, But by no means were they bereft Of riches that count above. The heritage handed down to me Cannot be bought with gold. Their high ideals, once hard to see, Give me courage to be bold; To go to bat for things worth while, As Dad and Mother used to do; To do my utmost with a smile And to my God be true. The Devoted Sisters of St. Ann REMARKS OF HON. PHILIP J. PHILBIN OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. PHILBIN. Mr. Speaker, it is with @ great deal of pleasure that I bring to the attention of my colleagues in the House the one hundredth anniversary APPENDIX TO THE CONGRESSIONAL RECORD of the founding of the famous religious order of the Sisters of St. Ann, whose headquarters in the United States are located in my district in the beautiful city of Marlboro, Mass. The observance of the anniversary was celebrated last week with religious and civil ceremonies in this country and Canada, which will continue until next September. Among the high lights of this observance will be the visit to Marl- boro next fall of Hugene Cardinal Tis- serant, a native of France, who is Bishop of Porto and St. Rufina in Italy. For many years, Cardinal Tisserant has maintained a deep and active interest in the progress and work of the Sisters of St. Ann and about a year ago he was designated by Pope Pius XII as the Ro- man Protector of the Community of the Sisters of St. Ann. I am distinctly honored and privi- leged to have the opportunity today to pay my own humble tribute to the out- standing, magnificent work of the Sis- ters of St. Ann in the fields of education and teaching, hospital care of the sick and afflicted, and missionary activities in foreign lands. From the small group of five young French-Canadian girls banded together 100 years ago in the common cause, the religious community of St. Ann has grown to more than 3,000 devoted sisters scattered over the world in 100 religious establishmerts. The Sisters of St. Ann carry on their work in colleges in Canada and the United States, parochial grade and high schools, novitiates, hospitals, dispensaries, and missions located in Haiti, Alaska, and Japan, The Mother House of the order is lo- cated in Lachine, Quebec, and the Pro- vincial House for the United States is at Marlboro where the Sisters have two schools, Anna Maria College and St. Ann’s Academy, which provide college and high school classes for girls. In ad- dition, the Sisters are in charge of St. Anthony’s Parochial School, providing grammar school instruction for the children of St. Mary’s parish, a French- speaking parish in Marlboro. Parochial schools are conducted by the order in several other communities in my district. Founder of the Sisters of St. Ann was Miss Sureau Blondin, a Quebec school teacher, who first broached her dream of a religious teaching order to four young friends in the small community of Vau- dreuil in Canada. These five sisters re- ceived their religious vows on Septem- ber 8, 1850, in the parish church at Vau- dreuil and within 3 years this small nucleus had grown to 22 teaching sisters, 6 novices and 6 postulants. Today, Many recruits annually take vows in the order, now numbering some 3,000 mem- bers. As a further indication of the order’s growth, the Sisters, during 1949- 50, taught some 29,000 students and treated more than 20,000 persons in the community hospitals and over 6,000 in the dispensaries. The Sisters of St. Ann first entered the mission field in 1858 and now maintain hospitals, schools ane missions in British Columbia, Alaska, Haiti and Japan. The order has been recognized for its good work in Alaska where the community has institutions at Juneau. Koserefsky in
APPENDIX TO THE CONGRESSIONAL RECORD the Yukon, Nulato, an Indian village near the Arctic Circle, and Skagway, among others. At the request of the United States Government, the Sisters assumed direction of a sanatorium for tubercular natives at Skagway. The Sisters carried their missionary activities to Japan where a commercial high school and grade school were estab- lished in Omuta in 1934 and 1935. At the outbreak of the war, the schools were demolished by the Japanese and in 1942 the Sisters were sent to a concentration camp and subsequently repatriated the following autumn. Conspicuous ecclesiastical honors have been conferred upon the order and the present Superior General of the Sisters of St. Ann. The Reverend Mother Mary Leopoldine, who has held that post for 24 years, holds the pontifical medal, Pro Ecclesia et Pontifice, presented to her last year by Pope Pius. In attendance at the anniversary ob- servance were the Most Reverend Rich- ard J. Cushing, Archbishop of Boston, and the Most Reverend John J. Wright, bishop of Worcester, who headed the list of religious and lay officials scheduled to pay well-deserved tribute +o the Sisters of St. Ann on the occasion of the one hundredth anniversary of the founding of the order. These illustrious and bril- liant church leaders, so endeared to Mas- sachusetts by their presence and their eloquence, would render impressive testi- mony to the noteworthy achievements of these self-effacing, self-sacrificing, and noble women. A nation is rich indeed that shelters and protects within its borders groups like the zealous sisters of St. Ann whose superb faith in God, whose unselfish la- bors for the poor, the weak, and the fa- therless, whose unceasing works of mercy, charity, and love reflect an ever-present light of inspiration and hope to lift up and give heart and strength to despair- ing Lumanity. I extend my heartiest congratulations to the Sisters of St. Ann on their one hundredth birthday and express the hope that their future success and ac-~ complishments may be increasingly ben- eficial. I wish fo. them continued hap-~ Piness in their lives of devotion and sac- rifice in the years to come. Above all, I thank them for their many contribu- tions to the welfare of the people of my district, the State, and the Nation, and the cause of suffering humanity. Extend Federal Rent Contro!s EXTENSION OF REMARKS HON. SIDNEY R. YATES OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. YATES. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the following editorial from the Milwaukee Journal of April 22, 1950: ExTEND FEDERAL RENT CONTROLS President Truman has asked. Congress to extend for another year the Federal Rent Control Act which expires on June 80. He marshals the reasons for this extension very convincingly. There is, he says, still a serious shortage of housing in many places. The shortage is most acute in housing which families with incomes under $300 a month can afford. Citing what has happened in areas already prematurely decontrolled, he argues that unless the Federal law is extended, rents will skyrocket, especially for those least able to meet unjustified increases. tlis proposal is that the law be extended for the 8,000,000 units which will still be under control at the end of June and that the present policy of permitting justifiable increases be continued. It seems to us that Congress will be wise to follow the President’s desires in this mat- ter, even though Federal controls are of no further direct interest to us here in Wisconsin. Wisconsin’s own rent control law, which superseded Federal law, also expires in June. We cannot return to Federal control and only a special session of the legislature could extend our own law. So, whether or not Congress reenacts the Federal statute, de- control will come in Wisconsin on June 1. What our experience will be remains to be seen. Many renters will be secure until th2 end of the year, because of leases which run through December 31. There are, how- ever, hundreds, particularly in the low-rent brackets, who do not have this protection. Unless a considerable amount of low-cost Evusing is built in the next few months, we are therefore likely to find that, while high rents remain relatively stable or even de- crease slightly, rents will rise sharply for the lower priced units, which are still in wholly inadequate supply. In other words, we are likely to follow the pattern which the President fears will strike the whole country if Federal controls lapse. We will have a landlord’s market, and what happens will depend to a degree on the landlord’s conscience. ~ McCarthy’s New Look EXTENSION OF REMARKS HON. WILLIAM S. HILL OF COLORADO IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. HILL. Mr. Speaker, under leave granted to extend my remarks, I wish to call the attention of my colleagues to the following editorial from a recent issue of the Rocky Mountain News of Denver, Colo. It presents an interesting com- ment on the current investigation of the charges of Senator McCartuy of the Communist infiltration in our Govern- ment and the menace of these radical in- dividuals who have crept into top-flight policy-making positions in the State De- partment and other Federal agencies. The editorial follows: McCartHyY’s New Loox It has seemed to some of us that Senator McCartHy was supporting his charges of Communist influences in the State Depart- ment with more noise than evidence. But it also has been apparent that a sur- prisingly strong segment of public opinion was rallying to his support. Was the Wisconsin Republican beating the Communists at their own game, simply by outshouting them? Or was he the coinci- dental beneficiary of a ground swell of pub-_ A3137 lic resentment against official indifference to a very real menace to national security? Whatever the explanation, we are con- vinced that Senator McCartuy himself is a factor to be reckoned with since hearing him present his case before the American Society of Newspaper Editors. His speech was loaded with tough, perti- nent questions which could not be laughed off. He is equally adept at answering ques- tions directed at him. Asked why he hadn’t named the Com- munists in the State Department, he said he would name names when the Depart- ment’s files were opened to him, adding: “If those files proved that McCakTHy was a liar, they would damn well be opened to- morrow.” That challenge may have to be answered the next time President Truman takes the stump. It’s whistle-stop language. The Senator cited the case of a man who, he said, was investigated 11 times by the State Department Loyalty Board before finally quitting and taking up active Com- munist Party work. “Eleven times the President’s Loyalty Re- view Board lacked the guts to order the man fired,” he charged. That, too, is whistle-stop stuff. ‘There was the case of George Wheeler, now attacking American foreign policy from be- hind the iron curtain. Why was this man cleared for highly important State Depart- ment work in Europe? Why, indeed? Dr. Philip C. Jessup has just been appoint- ed head of the State Department’s high Pol- icy Board, which will map our cold-war strategy. “Why does he always join Communist fronts? Why not anti-Communist organiza- tions?” Senator McCartry asked, submitting photostatic evidence that Dr. Jessup had been a member of five fronts. Jor McCarrHy will not be alone in ques= tioning this appointment, particularly when it is recalled that Dr. Jessup gave a character testimonial for Alger Hiss as late as last year. Whatever he may have lacked to support his charges at the outset, Senator McCarTHy is picking up, new ammunition and finding new targets as he goes along. It isn’t all just old stuff, either, but mate- rial reflecting on persons now in Government service, which will question the integrity of the Government itself unless it is rebutted to the public’s satisfaction. Sister Helen Madeleine EXTENSION OF REMARKS OF HON. JOHN F. KENNEDY OF MASSACHUSETTS IN THE HOUSE O¥ REPRESENTATIVES Monday, May 1, 1950 Mr. KENNEDY. Mr. Speaker, under leave to extend my remarks, I am in- cluding the following editorial from the Boston Post concerning Sister Helen Madeleine of whom Boston is extremely proud: SIsTrr HELEN MADELEINE The courage of nuns is commonplace knowledge. These women develop a quiet confidence in God to whom they have dedi- cated their lives. The result is that no en- terprise is too difficult, no task staggering. Sister Helen Madeleine, dean of Emmanuel College since its founding 31 years ago, is a case in point. After those years of service when the ordinary college dean might seek re- tirement to a life of study or ease, Sister Helen Madeleine will journey to Japan to help open. a new college there staffed by the Notre
A3138 Dame nuns. She has had many honors since the doors of Emmanuel College opened. She has had the tremendous satisfaction of see- ing the school, in its short span of years, become one of the leading Catholic educa- tional institutions in the country, and one cf Mew England’s outstanding colleges for girls. Its success, though she would blanch at the statement, is mainly due to her great personality. It will never lose the impetus she has given it. She will be honored at a formal reception at the college next month and will leave for Japan in June. The ac- complishments she leaves behind make her one of the great women in the history of Boston. Reepen Army-Navy Hospitals EXTENSION OF REMARKS HON. PHILIP J. PHILBIN OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. PHILBIN. Myr. Speaker, in my opinion, the order closing many Army and Navy hospitals at this time is a great mistake. It cannot possibly be justified in the light of the needs of our service- men, their dependents, and our veterans. To the credit of this House, the emi- nent and distinguished gentleman from South Carolina [Mr. Rivers] and his able Subcommittee on Armed Services has not only protested this action and demanded its cancellation but has also conducted a very penetrating investigation into the general situation projected by the arbi- trary closing of these hospitals. The facts already brought out by this inquiry are astounding in many respects. For example, the committee has disclosed that the economies claimed for the order are largely illusory. It is shown conclu- sively that money saved in one way will hava to be spent in other ways and that the net effect of the closings may well in the end constitute larger cost and ex- pense to the Government. It also appears that medical and hos-~ pital service to our armed services per- sonnel and their dependents and vet- erans of certain categories would be un~ reasonably and harmfully restricted. For example, the closing of Murphy Gen- eral Hospital at “Waltham, Mass., and other closings would mean that the only Army genera! hospital east of the Missis- sippi River remaining available for serv- ice men and yomen of the entire eastern seaboard would be the Walter Reed Hos- pital at Washington, D. C., an institution already besieged by many service per- sonnel who are unable to secure admis- sion and who, regardless of the serious- ness of their condition, in most cases, have to wait long periods to obtain proper medical care to which they are entitled by law. The very able, gracious, and distin- guished gentleman who represents the district where Murphy General Hospital is located [Mr. Dononve] must be great- ly commended for his persevering and unyielding efforts to keep this fine in- stitution open. Because of the high re- gard in which he is held in this House and the confidence which our colleagues have in his judgment, many Members, including the great chairman of the Armed Services Committee [Mr. Vinson], have joined him, as I have done, in ap- pealing to the Secretary of Defense to save this and other hospitals. There are some indications that these repeated appeals may receive some consideration. Such orders do violence to both the hospital and the present well-merited drive for economy. No economy meas- ure that does not have public opinion squarely behind it can be sustained in the long run. The public is outraged by attempts of the Department of De- fense to sweep aside hospital facilities provided by Congress for the armed services. I hope that the Department of De- fense, which has so unwisely, so un- soundly, and so hastily moved in those matters, may scon be persuaded by the logic and facts of the real situation as it unfolds and promptly cancel the closing orders. Otherwise Congress must act by considering changes in certain basic Jaws which many people think repose too much power in the hands of the De- partment of Defense. That is a most vital question to which I propose to give my closest attention. Meanwhile, Mr. Secretary, I respect- fully appeal to you to revoke the order closing service hospitals. New York’s Example on Rent Control EXTENSION OF REMARKS HON. SIDNEY R. YATES OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr, YATES. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the following editorial from the Louisville Courier-Journal of April 12, 1950: New YorK’s EXAMPLE ON RENT CONTROL Should rent controls be extended beyond June 30, when the present Federal law ex- pires? President ‘Truman has asked— though not very loudly as yet—that Federal ceilings be extended another full year, but Congress has not even done much talking about the controversial subject so far, and opponents of rent control say they have enough votes to kill it, when and if, That may be true. The real estate lobbies have done their usual effective job in Wash- ington. Many Congressmen are sincerely convinced that there is no longer any need for Federal ceilings. But we are willing to bet a political dollar that a good many Congressmen who vote against extension of rent control this spring will find themselves at the short end of the balloting next fall. And our hunch is not based on any mastery of the conflicting sets of statistics put out by those who say that the public interest requires extended control or by those who say that it does not, or even by the evidence that where controls have been lifted rents have Jumped 20 to 100 per= cent over controlled standards. Our hunch is based on nothing less than the action by Gov. Thomas E. Dewey and his ‘Republican legislature in New York. The APPENDIX TO THE CONGRESSIONAL RECORD city of New York had already passed local rent control legislation to backstop the pro- gressive postwar weakening of Federal acts, put this was not enough, politically or practi- cally, for State Republicans. Faced with the possibility that Federal controls would ex- pire this June, the Republicans put through a bill transferring residential rents from Fed- eral to State control effective May 1. And Governor Dewey, praising this measure to the detriment of a Democratic bill lost in the shuffle, signed it with the pointed observa- tion that the new law freezes virtually all rents until March 1951, while the Democratic formula would have permitted immediate increases. New York isn’t exactly typic:.1 of the rest of the country, but on rent control, we sus- pect, Tom Dewey’s pulse-feeling would do for a good many other States as well. The economists say our boom-rate buying is likely to continue through 1950, and if rents, long recognized as the classic inflationary item in all booms, are allowed to zoom skyward, millions of Americans are going to be sub- jected to ruinous pressure. New York Re- publicans have shown a proper apprehension that such pressure, aside from its economic results, might yield political dynamite, John S. Service—His Record EXTENSION OF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. SMITH of Wisconsin. Mr, Speak- er, as usual Mr. Henry J. Taylor is ren- dering a patriotic service in pointing out the record of John S. Service as a high- ranking diplomat in American foreign service. On March 20, 1950, in a Na- tion-wide broadcast he related some facts about this man. Under leave to extend my remarks, I am including the broadcast referred to: SuBJEcT Mr. Taylor, you attended the Alger Hiss trials, and reported on them. You have been working on the case of Diplomat John 8, Service ordered back this week from Indla for review of his loyalty record. Most of us have never heard of John S. Service. Mr. Taxtor. The same forces for protection which closed in around the then unknown Alger Hiss are now closing in around John 8. Service. All of which makes me leery. For I love this country as youdo. But itis being eaten out from within. STATE DEPARTMENT OFFICIALS BLEED Just as Secretary of State Acheson promptly pled for Alger Hiss, so the Deputy Under Secretary of State now promptly takes it upon himself to announce—and I quote— that “the sympathy and good wishes of the entire State Department go out to John Stewart Service.” Why all this stir of defense, this bleed- ing, because John Stewart Service is to be questioned? Who is he? Let me give you some first-hand facts I obtained from a man Service worked for— the United States wartime Ambassador to China, Patrick J, Hurley. I verified and confirmed these facts over the week end, with Mr. Hurley himself, I first met Alger Hiss at the Dumbarton Oaks international conferences some months before I ever heard of John S. Service. This was in 1944,
APPENDIX TO THE CONGRESSIONAL RECORD CHUNGKING DOUBLE-CROSS When I did encounter this man Service I was 1n China. There, toward the end of the wen I was with Ambassador Hurley at Chung- ing. Eurley told me then that State Depart- ment Officials in his own American Embassy stafl—and he named them—were, in his opinion, double-crossing him with Stalin’s stooges, the Chinese Communists. He said they were trying to put American policy into the Communist camp. I can see him now, pacing the floor of his Chungking house, a worried and frustrated patriot. Behind the closed door he named these men to me, one by one. Among others, he named John 8S. Service. Now remember, this was in 1945. That was nearly five long and fateful years ago— fateful for the security of your land and mine, our homes, our future, our very lives. ELEVEN COME HOME Shortly after I left him, Hurley ordered back to Washington from China 11 embassy Officials who, in his opinion, were so cosy with the Communists that he pulled them out. John S. Servicé was included in this group. This is what Hurley said about them, pub- licly, in the New York World-Telegram, on November 28, 1945: “Most of them have con- tinued to side with the Communist armed party and, at times, with the Communist imperialist bloc, against American policy.” But Mr. Hurley, as you recall, was smeared at once by all the political forces of protec- tion. He was given a cold shoulder by highest State Department authorities, in- cluding Mr. Dean Acheson. Then came the famous saying, “It’s all a red herring.” Yet you see how truthfully and cou- rageously Ambassador Hurley spoke—albeit how thanklessly. For today’s whole out- come was foreseen and foretold by Hurley and others five long years ago. But nothing was done to save us. THE ROYAL WELCOME As for the men Hurley threw out, what happened to them when they got back to the State Department in Washington? Let’s be exact about this. John D. Davies, one of the eleven, was appointed to the top planning board of the State Department, which is the brain trust for American foreign policy. Davies was given the job of calling the American signals about China—and at the top policy level. He was then sent to our Embassy in Russia along with Horace H. Smith, whom Hurley also threw out. Arthur Ringwalt, also sent back by Hurley on suspicion of procommunism, was made Acting Chief of the China Division in Wash- ington. Who were appointed assistant chiefs? Two more of the very same 11 men Hurley threw out in the same bunch, Edward E. Rice and Fulton Freeman. You have seen what has happened to us in China since then—as well as in Moscow and throughout the world. Yet we talk now about total diplomacy in the hands of the same leaders. Stalin must be laughing at us. Total di- plomacy? Whose diplomacy is it we have— his or ours? Now we come to John S. Service. Here are the facts. Please listen carefully, if you fear America’s position in a next war. First, Ambassador Hurley told me that John Service had already been relieved of his duties once in China, and sent home, by Supreme Commander Lt. Gen. Albert C. Wedemeyer, another fine American. Never- theless, State Department officials in Wash- ington sent John Service back to China, through another channel, to the Communist area of Yunnan—by bypassing Wedemeyer, and without the knowledge or consent of Ambassador Hurley. THE WHITE HOUSE INTERVENES Ambassador Hurley told me that, when he discovered this, he went to the White House and protested to President Roosevelt. Re- member, all this is news. He produced let- ters John Service and others had written, reflecting their views. May I say that the Senate and the American people should read those letters and reports now, while the bleeding is on. President Roosevelt authorized Hurley to send such characters home. So Service was sent home for a second time. When Service reached America, he was ar~ rested by the FBI. He wasn’t just questioned by the FBI. He was arrested by the FBI, as Mr. J. Edgar Hoover would verify to you. For J. Edgar Hoover is not afraid of any~ body. That's what makes him a great American. THE WHITEWASH TREATMENT Service was brought beZore a grand jury, but he was let off—although tho claim is made that his FBI record was never fully presented to the grand jury by Government attorneys. A State Department whitewash quickly followed. Then what happened? Was Service detached from policy de« cisions? Well, hardly. After all this, Serv- ice was assigned to Japan to tell General MacArthur, of all people, how to negotiate with Russia. General MacArthur reportedly rejected Service. But Service showed up in Japan anyway, on some kind of authority from the State Department. Then, after Mr. Acheson be- came Sscretary of State, Service was act~ ually boosted even higher. Today we have John S. Service on the way to high official duties 1n India, a crit- ical place in our problem of communism, WHO WAS HOLDING THE UMBRELLA? The question arises: What mysterious power has protected his record? After five long years since the charges of 1945, and after 13 months of latest so-called study, the Loyalty Review Board of the Civil Serv- ice Commission now states that it does not feel it can give John S. Service “loyalty clearance.” He is asked to come home for the purpose of giving personal answers—no more than that at this stage. But why have the FBI record on John §. Service, and the China and Mos- cow background, and his FBI arrest been treated by protectors as if they didn’t exist? Certainly something has gone frightfully, tragically, terribly wrong with our security measures, even if our own Officials will not admit it. For it has already been shown in court that we do have traitors working in our Government. Blindness to the Communist strategy has already cost us Asia. It can cost us the world. It can cost us the United States. It can be a question of life and death to our Nation in the event of a surprise war— unless we wake up and insist that America’s safety is more important than anybody’s refusal to let the chips fall where they may—and there is no time to lose. Centennial Speech at University of Utah EXTENSION OF REMARKS OF HON. REVA BECK BOSONE OF UTAH IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mrs. BOSONE. Mr. Speaker, under leave to extend my remarks in the Rrec- orp, I include the following centennial A3139 speech, February 28, 1950, by A. Ray Olpin, president, University of Utah: Governor Lee, President Smith, Mayor Glade, distinguished delegates, members of the board of regents, members of the fac- ulty, students, ladies, and gentlemen, there are times when the office one holds places him in a diffcul* w-stfon. T 4d myself in such @ position ws: ivr. to respond to the elequen ccric- iv - 9 the Uni- versity of Utah on this, its one hundredth birthday, a milestone not yet achieved by any other State-supported university west of the Missouri River. I am fully conscious of the fact that the enviable position held by this educational institution is the combined result of wise planning by the founding fathers, sound guidance by governing boards, superior in- struction by competent teachers, and the intelligent leadership of former presidents, three of whom are present and participating in this centennial observance. Moreover, the distinction achieved by this school re- flects the loyal and generous support of gen-= erations of citizens motivated by a convic- tion that man cannot be saved in ignorance. Yes; there have been some persons in the past as there doubtless are some today who feel that Utah’s institutions of higher learn- ing are outgrowing the State’s ability to support them, what with twice as many stu- dents enrolled here for each 1,000 popula~ tion as in a typical State. But I can find nothing in the history of the University of Utah that would indicate that the university has developed more rapidly than, or out of proportion with, the plan envisioned by its founding fathers. Else why did the regents, following their very first meeting March 138, 1850, stake off a rectangular area of more than 560 acres, including the plot we now occupy, and set it aside as the campus on which the university was to grow? Although these plans for physical growth received a temporary setback in 1862 when the United States Army appropriated all of the land for a military reservation, named by President Lincoln after his political oppo- nent, Stephen A. Douglas, some 460 acres of this army post have reverted to the posses= Sion of tne university, thanks to three separ-~ ate acts of Congress and opportunities opened up by the Surplus Property Act. Even so, the campus today is 100 acres smaller than it was a century ago. If it were not the intention of the original planners to establish and foster here a great and varied university, with low tui- tion, why do you suppose the first chancel< lor heralded through the printed page the following message to the people of Great Britain on October 1, 1850: “This institution is needed to meet the wants of thousands that annually emigrate to this Great Basin. The immigrants and outcasts of all nations will here find an asy= lum of safety and a nursery of arts and sciences available upon the cheapest terms. It is neither arrogant nor extravagant to say that this institution 1s forthright prepared to teach more living languages practically than any other people on the face of the earth. Whatever is valuable in the laws and usages of nations or in their antiquities; whatever in the structure of diversified languages or in practical mechanism; what- ever in the fabric of governments or in do- mestic sociality or in morals can be gleaned that is valuable, we venture to say unhesi- tatingly will be copiously poured into the lap of the institution. Graduates of col- leges and students of law, medicine, and _theology may here receive weekly lectures gratis. No person will be denied the benefits of the university for want of pecuniary means.” Or, why should Gov. Brigham ‘Young, at about the same time, announce with exu- berance the arrival from England of a ship- ment of goods that included “an excellent e.
A3140 telesrope, miermerone aches, chemical tests, and “17.95 .-, all of which are most valuable acquisitions in promoting scientific research” and that the books of the Utah library had “been unpacked in good or- der, great variety, and of a choice selection.” Now, remember—those published state- ments were not made by professional edu~ eators living in erudite communities. They issued from pioneers in western frontier country, so far removed from the National Capital that news of the signing on Septem- ber 9, 1850, by President Fillmore of the Or- ganic Act creating the Territory of Utah did not reach Salt Lake Valley until 4 months later. Actually, the authors of those phi- losophies of education had been in this val- ley but 2% years when the University of Deseret, as this institution was then called, was incorporate’. Immigrants from the world over were even then still arriving from the Midwest, East, and European countries on foot, wearily dragging their limited be- longings behind them in handcarts. There can be only one explanation of this enthusiasm for higher education, namely, @ conviction that it would lend security to both government and religion. Most of the early settlers, as is well known, were converts to Mormonism, and the saving graces of edu- cation constituted a basic tenet of the Mor- mon religion. With Brigham Young, whose own formal education was limited to 11 days of class- work, higher education was almost an ob- session. As Governor of the Territory he pleaded with a less sympathetic legislature for meager appropriations from a near-bank- rupt treasury, and failing in this effort took steps to petition the Federal Government for financial assistance to keep the doors of the university open. In 1852, the United States Congress was memorialized for $24,000 to be invested in some productive fund, the proceeds of which would be applied to the support and use of schools. In the light of current-day fears of so- called socialized education, it is surprising to learn that such a rugged individual as Brigham Young should seek help from Wash- ington. It serves to remind us that Federal aid comes into the scheme of school finan- cing when lccal units of government fail to meet their obligations. The Federal grant was never made and the University of Deseret closed its doors for 15 years for want of funds, although regents were regularly appointed and met to consider the problems of the public schools. Even after the university reopened for classwork under the very competent and in- spiring leadership of Dr. John R. Park, to whom every alumnus and student here to- day owes a debt of gratitude, there were times of near financial starvation. Particularly trying were the years when unsympathetic Territorial governors vetoed legislative ap- propriations. The university’s growth , was assured, however, and today there are 500 times as many faculty members and students as there were in 1850. Even the campus, though still a little smaller than it was in- itially, could well be ample for all buildings that may be contemplated during the next 100 years. Historically speaking, 100 years is a rela~ tively short interval of time. It seems much longer when we are living in that period or when it is characterized by many major events, The century just ended seems sur- prisingly long because so many momentous happenings occurred during that period of our Nation’s history. Actually, the past cen- tury embraced five-eighths of the period dur- ing which Americans have lived under the protection of the United States Constitu- tion. In order to get properly oriented, we might well remember that more generations of people have lived and died since this uni- versity was founded than lived and died un- der the American flag prior to that time, Delo rerio At the time the university was founded; that is, at the opening of the century just ended, human bondage was common in many parts of the United States, Two important events were yet to happen before this prac- tice was to be fully abolished. The first was the Civil War, still a decade off, and the sec- ond, the technological and industrial revolu- tion, still a quarter of a century in the fu- ture. Reliable records indicate that the first of these two events was anticipated by the founding fathers but it is doubtful that any of them even guessed that the 10 years 1876- 86 would witness the birth of the telephone, the first successful are lights, the first really commercial dynamo electric machinery, the first practical gas engine, the phonograph, the electric furnace, the incandescent lamp, electric traction, electric transformers for the use of alternating-current machinery, electric storage batteries, synthetic indigo, alloy steel, steam turbines, gas engine-pro- peled road vehicles, nitrogen fixation, and the introduction of rare earth gas mantles as a means of illumination. Four of these in- ventions—the telephone, the incandescent lamp with its closely associated AO and DC dynamo electric machinery, the practical high-speed gas engine, and the chemical processes which underlay the synthetic pro- duction of indigo~were the foundation stones on which have been erected four of the world’s greatest modern industries. These have been followed by airplanes, radio, tele- vision, and a multitude of other important developments, all greatly extending our faculties for acquiring information of cul- tural and practical value and all multiplying our capacity for work. Human slavery was now outmoded. Each and every man, woman, and child now has at his or her command, merely by pushing a button or pulling a lever, literally hundreds, if not thousands of me- chanical and electrical slaves. That the world could change so rapidly in three-quarters of a century is a tribute to both the power of science, which underlies these developments, and man’s ability to apply science. The inventions mentioned above could well be labeled byproducts of higher education. At the same time, by their very nature, many of them were des- tined to revolutionize teaching methods and social relationships in the civilized world. They could not help but exert a greater in- fluence on education than any develop- ments of previous history. For, were not distance and time now virtually elimi- nated? People could be brought together, though scattered in all parts of the world, in personal converse as though sitting across the table from one another. But, valuable as was this new found abll- ity to rapidly interchange ideas, it also posed problems for educators which have not yet peen solved. For one thing, the intimate and exclusive relationships between teach- ers and pupils have been broken down. The teacher no sooner relaxes his or her influence on the student at the end of the school day than someone, more often than not some unprofessional, prejudiced employee of a social pressure group or merchandising firm, takes over for the rest of the waking hours. The privacy of the home is invaded to the point that even the parents’ influence on their children is weakened. In order to better understand the impact on society and education of the scientific and industrial developments of the past century, let us contrast the pattern of liv- ing at the beginning and end of that century, In 1850, people rose early, worked hard, retired early. Most of them owned their own means of making a livelihood; built fences around their property rather than laws around their jobs, as at present. Crafts- men learned their vocational skills as ap- prentices. There were no sharply defined class distinctions. Blue-shirted workers as well as white-collared executives considered APPENDIX TO THE CONGRESSIONAL RECORD education an adornment, and courses were offered which would add knowledge to all alike and which would train people in clear, straight thinking. Entertainment was self- made, not commercial. Reading was con- fined mostly to the Bible and to the classics. Families were closely knit because the mem- bers spent so much time tc-o*.cr. Strangers in a community were u v...7 \.eleome visi- tors because they served as sources of in- formation. A person was free to formulate his own philosophy and to strive to make the world what he thought it should be. The schools and churches had no great competitors in their efforts to develop the minds of young and old alike. The teachers, therefore, occu- pied a more elevated position and congre- gated around themselves many enthusiastic disciples. These students had little else to do after they left their instructors than to meditate on the day’s teaching and expe- riences, concentrate on preparations for the morrow, and contemplate the significance of all. Yes, they even had time to supplicate for supernatural aid in making the world a better place 1n which to live. Now, in 1950, we find that the days are so full and life is so busy that man can find little time for meditation, concentration, and supplication. We find we no longer have days and nights; we merely have longer days. At the flip of a switch any room in our house takes on the brilliance of noonday. Street lights in the cities and headlights on automobiles provide complete : nd safe means of moving about out of doors at night. Hard- surfaced highways instead of muddy roads make it possible for us to chase around in every direction at dangerous speeds, riding comfortably on pneumatic tires in heated vehicles. On nearly every corner we find motion-picture houses or some kind of com- mercial recreation or entertainment where someone leads or directs our thinking. We are even induced to visit these places because of propaganda which reaches our ears via radio and our eyes via the press. Actually, we swerd so htrle ture at home that we feel a “2: wieceuic: isle at being there. But we relieve our concern at this confinement by turning a dial and tuning into actual happenings going on all over the world. We listen to speeches as they are being delivered in an effort to control the minds of the listeners. Or we pick up one of the scores of newspapers and journals which are competing so strenuously for cir- culation that they devote considerable space to writing columns that will please rather than stimulate thinking. And then, if we stay at home we can now have piped into our very living rooms by television special entertainment in its various forms, ranging from faked wrestling matches to sporting events, to fashion shows, to sex stories, to wild-west shooting battles, and so on. Even our children in their tender ages, when they are too young to be permitted to go out in the evenings alone, can sit at home, turn a dial, and have all of the worries of the world, the vices as well as the good things, brought vicariously to them. In the modern world we find ourselves so concerned with mensuration and calculation that we have little time for meditation. The importance of concentration has been lost in our concern over compensation. But, more lamentable still, our leisure is dominated by propaganda which, if nothing else, is enter- taining advertising of patent curealls for every drudgery and ailment. We are told we can purchase security in every form. We develop a feeling of self-reliance and an at- titude of self-sufficiency. We find growing within us an air of sophistication which is not conducive to supplication. Pride re- places humility. We are led around by the tinsel of artificiality and commercialization. If the trend continues, we will soon develop @ generation of puppets who can be ma- neuvered this way and that with ease by a
APPENDIX TO THE CONGRESSIONAL RECORD few propagandists striving to control the minds of men. Well, what are we going to do about the situation? One thingis apparent. The prob- lem is no longer one for educators alone. It is one for society, for you and for me as par- ents and citizens of a free community. After all, the time spent by the pupil in the schoolroom is but a small part of the day and but a fraction of the year. It is prob- ably the influences on the child outside of school hours that are our biggest concern The battle for the minds of men seems to be- come more intense as the day progresses into night. I am sure the schools and universities will do their part. They can and should do every- thing within their powers to develop within their students the methodologies of inde- pendent and objective thinking, a type of teaching stressed by the founders of this great university. It is possible that this will provide the best insulation against the prop- aganda of pressure groups. Perhaps the schools can help improve the quality of the commercial entertainment to which youth is exposed, but in this we need the cooperation of all parents and civic organizations. We will continue to be bombarded with what- ever we demand and whatever we are willing to tolerate. . May we all work together in the century ahead to see that the great liberalizing forces ushered in by the technological revolution of the past century are directed in construc- tive channels for the enrichment and better- ment of the lives of all. As president of a university which today commemorates the first century of its service to the people of this State and this Nation and begins the second century of such service, I pledge our efforts and resources to that goal. Prescription for Small Business EXTENSION OF REMARKS OF HON. ABRAHAM J. MULTER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. MULTER. Mr. Speaker, I am pleased to call the attention of my col- leagues to the article entitled “Prescrip- tion for Small Business,” written by Herman Limberg, which appeared in the April 1950 issue of Systems. I have known the author for many years as an able economist. He is now an instruc- tor in management, systems, and pro- cedures at New York University and at the City College of the City of New York. The article is very timely: PRESCRIPTION FOR SMALL BUSINESS (By Herman Limberg) A BASIC DIET OF SCIENTIFIC MANAGEMENT OFFERS A FORMULA TO HELP THE SMALLER ORGANIZA= TION CONTINUE TO GROW IN A HEALTHFUL EN- VIRONMENT Because of its recognized importance to the national economy, small business has re- ceived considerable attention and study in recent years. Both private organizations and Government agencies have sought to provide a healthful environment in which small business can continue to grow and flourish. In June 1947, the Committee for Economic Development published a report which should be cherished as a bible for all small- business men. Entitled “Meeting the Special Problems of Small Business,” this report re-. vealed that 98 percent of the firms operating in this country are small businesses. “They are,” said the report, “the foundation upon which our whole system of business enter= prise is built.” To prescribe for the soundne s and good health of this vital segment of American enterprise, the CED diagnosed the ills which usually beset small business and grouped them into three categories: management, financing and taxation, and competitive op- portunity. The most significant finding of the CED study was that the number one preblem of small business is management. More fail- ures are due to lack of skill in running the business than to any other single cause. In this statement lies the key to the suc- cessful operation of any small business. SCIENTIFIC MANAGEMENT Management—scientific management—is even more vital to the success of small busi- ness than to big busincss, since the margin for error (if there is any at all) is substan- tially narrower in the operation of small business. Nevertheless, the basic cause of distress of many small businesses is a chronic allergy to the implications of scientific man- agement. The alleviation of the number one problem of small business is not only the prime essen- tial for a sound framework for profitable operation, but is the basic requirement for effectively solving the problem of financing and taxation and meeting the challenge of competition, ‘There is nothing esoteric in the practice of scientific management. In fact, it is the practical application of common sense, with which most small businessmen are vastly endowed. It involves, in substance, the de- termination and clarification of business ob- jectives; the compilation, analysis, and inter~j pretation of all pertinent facts and figures; the development of plans for the efficient and economical attainment of stated objectives; and the establishment of effective controls for the direction, coordination, and integra- tion of the enterprise toward the realization of plans and objectives. COsT CONTROLS A major factor in scientific management is the establishment and maintenance of cost controls. Small business often risks its sure vival either by incurring unduly high costs or by indiscriminately slashing costs. Since costs are one of the vital links in the man- agement chain, scientific determination of cost requirements, in the light of stated ob- jectives, and effective control of obligations and expenditures on a continuing basis, are essential. Improperly conceived reductions in costs often beget results more costly than those desired. Reductions in personnel may lower morale and productivity. Reductions in services to customers, advertising, 4nd qual- ity of products may adversely affect existing markets. Reductions in quantity and qual- ity of purchases may result in higher buying costs as well as production costs. Reductions in office and administrative costs may ad- versely affect all internal and external rela- tions with which the business enterprise is concerned. ft is evident, therefore, that the proper planning and control of costs are essential elements of scientific management. To meet the No. 1 problem of small bus- ness and to insure the strength and vitality which small business needs to grow and flourish, the following prescription for sci- entific management is offered: 1. Clear definition by top management of its objectives and policies and their com- munication to all employees. 2. Establishment of quality standards for personnel, customers, sources of supply, as well as for materials, equipment, and supplies. 3. Establishment and maintenance of ade- quate quality controls. A3141 4. Establishment of quantity requirements and standards for personnel, customers, sources of supply, materials, equipment, and supplies. 5. Establishment and maintenance of ade- quate quantity controls. 6. Maintenance of good public relations with employees, customers, sources of sup- ply, and the public in general. 7. Insistence upon giving and receiving fair value in every business operation and trans- action. .e 8. Establishment and maintenance of an organization of competent, well-informed, well-directed, well-trained, and properly motivated people. 9. Provision of adequate facilities for effi- cient and economical operations. 10. Establishment and maintenance of effi- cient systems for recording, compiling, an- alyzing, intepreting, and reporting essential data and facts upon which to base policies and plans and evaluate performance. 11. Establishment and maintenance of adequate controls for effectuation of policies and plans. 12. Daily follow-up to ascertain progress and results, and to determine the needs for possible revisions or adjustments in plans, policies, or procedures. The foregoing prescription embodies the fundamentals of scientific management. It is not guaranteed as a panacea for all the ills from which a small business may suffer. It is, however, offered as a basic diet without which the slightest infection may be fatal. Responsibility for good management must be borne by the individual enterprise itself. Furthermore, to quote the CED report: “There is a responsibility that each business~ man act so as to strengthen the free-enter- prise system. It is a responsibility he owes to the system in which he believes.” Closing of the Van Nuys-Birmingham Hospital EXTENSION OF REMARKS HON. HELEN GAHAGAN DOUGLAS OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Thursday, March 23, 1950 Mrs. DOUGLAS. Mr. Speaker, under permission to extend my remarks, I should like to add to the picture of the veterans’ hospital situation in California which was described in my remarks of March 14 and April 18. The Paralyzed Veterans’ Association, of Van Nuys, Calif., has a particular stake in the Birmingham Hospital and the Public Law 702 homes of its mem- bers. Their case against the closing of the hospital and the removal of the hos- pital facilities to Long Beach is given very forcefully below in a recent letter from Ted Anderson, executive secretary: PARALYZED VETERANS ASSOCIATION, BirMINGHAM HOSPITAL, Van Nuys, Calif., April 21, 1950 Representative HELEN GaHaGAN DovGLas, House of Representatives, House Office Building, Washington, D. C. Dear Mrs. Dovcras: I am writing you in reference to a proposed plan of the Veterans Administration to move Birmingham Hos- pital to the naval hospital in Long Beach. Though we are not located in your congres- sional district, I know of your interest in veteran affairs, and particularly disabled vet~ erans.
A3142 I believe you are acquainted with Public Law 702, which provided Federal grants of $10,000 for specially adapted wheel-chair homes for service-connected paraplegics. Under this law, nearly 100 of our 450 mem- bership have bullt their special homes (with ramps, lowered closets, wide doors, extra wide halls, etc.) near Birmingham in the San Fernando Valley. Another 100 are in the process of building, or have acquired valley property with that intention. It is absolutely necessary for paraplegics to live near a VA paraplegic center for in- dispensable periodic medical treatments and supplies. These Public Law 702 homes represent more than $1,000,000 invested by the Fed- eral Government already. It is also a mil- lion-dollar investment for us paraplegics. I think you can readily see why we are so worried about the proposed move to Long Beach. Birmingham is the only VA paraplegic center west of the Mississippi. Many of our members are men who have transferred here from the eastern centers in New York, Chi- cago, etc. They moved to the San Fernando Valley to live in the warm, sunny climate so vital to paraplegic health. Long Beach is cold, foggy, and terribly oil-smelling, as you well know. The warmth and nice climate of the San Fernando Val- ley is perfect for the comfort of the para- plegic injury. Doesn’t the health and financial welfare of 450 combat-injured paraplegics warrant consideration in any proposed move of an established VA hospital? Many of our members have invested in businesses which can be operated in a wheel-~ chair, A move to Long Beach would mean a com- plete disruption of the educational program of 60 paraplegics in our association attend- ing U.C.L. A. So, you can see the picture: Sell our spe- cially adapted homes at great financial loss, uproot all our business ties, destroy the ed- ucational program—and move from the sun- ny San Fernando Valley to the fog and oil wells of Long Beach. Are we to become a group of Government transients who must move every time the VA decided to change the paraplegic center location? If this move is made, it will be the gross~ est injustice to California paraplegics. We are asking your aid and support in preventing any such movement. We want only to live in our own homes—homes which are built especially for us. I would appreciate hearing from you, and whether you think the change will be made. I remain, Cordially yours, Trp ANDERSON, Executive Secretary, Paralyzed Veterans’ Association. ; Mr. Speaker, in addition, I have con- tinued to receive many individual letters, as well as resolutions against the closing of the Van Nuys Birmingham Hospital from interested organizations, similar to the one that appears on page A2769 of the Appendix of the ConcrEssionaL REc- ord. I shall not here again quote the resolution but merely list for the atten- tion of my colleagues in this bcdy the names of nine additional organizations and their officers which have gone on record against the closing of these needed veterans’ hospital facilities in California: Kiwanis Club of Van Nuys, Calif., E. M. Lambert, president, F. Haworth, secre- tary; Veterans of Foreign Wars of the United States, Glendale Post No. 1937, Glendale, Calif., John W. Fellows, com- mander, Norman White, adjutant; VFW, Pvt. Oliver L. Sylva, Post No. 5387, Sund- Jand-Tujunga, Calif., Lawrence L. Groll, commander, VV. C. Nelson, secretary; VFW, Pvt. Oliver L. Sylva, Post No. 5387, Ladies Auxiliary, Vivian Leafdale, presi- dent, Bertha Garrett, secretary; Catholic Daughters of America, San Fernando, Calif., Angie Fusano, president, Lucile M. Mahon, secretary; I. O. O. F., San Fer- nando Rebekah Lodge, No. 348, San Fer- nando, Calif., Evelyn Harmon, noble grand, Margaret V. Moye, recording sec- retary; Fernangles Civic Association, North Hollywood, Calif., Ben Gotter, chairman public relations committee, and Messrs. Erskine, King, Carson, and Maddox, committee members; Canoga Park Chamber of Commerce, J. H. Fraser, president, Ralph D. Dyer, secretary; Sherman Oaks Chamber of Commerce, Sherman Oaks, Calif., K. P. Crater, presi- dent, William C. Keim, secretary. Hon. Barratt O’Hara EXTENSION OF REMARKS HON. JAMES V. BUCKLEY OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Friday, April 28, 1950 Mr. BUCKLEY of IHinois. Mr. Speak- er, I am sure the Members of Congress will want to join me in extending best wishes and congratulations to our distin- guished and worthy colleague, the Hon~ orable Barratt O’Hara, Representative from the Second District of Illinois, on this occasion of his birthday anniver- sary. As a gesture of my sincere apprecia- tion of the fine background, and broad, noteworthy experience which Mr. O’Hara brings with him to the Congress, I wish to acquaint the Members of the House with a short résumé of the life and works of the gentleman from Illinois. Mr. O’Hara, a senior in years of serv- ice in the cause of liberalism, is a veteran legislator from Chicago. Long a cham- pion of organized labor, he served in 1913 as Lieutenant Governor of Illinois and spent years in the Illinois State Senate. There, as chairman of the wage com- mittee, he conducted an investigation of low wages paid women workers in stores and factories which attracted national attention and led to the passage of the first State minimum wage law. For a number of years he was a trial attorney for some 10 or more Chicago labor unions and for 5 year’s he made the remarkable record of speaking nightly over WCFL, Chicago Federation of Labor radio station, presenting the viewpoint of organized labor on all public questions. For his long record of activity in behalf of labor, he was selected to oppose Rich- ard B. Vail, whom he defeated. Congressman O’Hara has a colorful background. He joined General Shaf- ter’s army in Cuba at 16, the youngest American soldier in the attack on San- tiago on July 1 and 2, 1898, in which one of his comrades was the late Theodore Roosevelt. At 30 he became Lieutenant Governor of Illinois and also served as APPENDIX TO THE CONGRESSIONAL RECORD labor’s representative on the late Red- field Federal Board of Inquiry into the tragedy of the steamship Eastland, which overturned in the Chicago Harbor, taking hundreds of lives. At 34, Mr. O’Hara took over the organization of the famous D. W. Griffith’s motion-picture studios, and a year or so later was again in the Army in World War I, in which he served in the Twelfth and Hightieth Divisions. Following the war he practiced law in Chicago and was defense counsel in more than 200 murder trials. In 1939 he was special attorney with William Secton for the city of Chicago in traction litigation which ended with a comprehensive uni- fied system of local transportation. Mr. O’Hara, during his colorful past, at times was engaged in newspaper work. He has been sports editor of the St. Louis Chronicle and Chicago American; he has also been cable editor of the Chicago Chronicle, Sunday editor of the Chicago Examiner, and editor in chief of the Chicago Magazine. He is also author of several books, including a history of the United States Constitution entitled “Who Made the Constitution”—with co- author Marie Crowe. He is also active in veterans’ organizations, including the American Legion, Veterans of Foreign Wars, and the Chicago Press Veterans Association. I am proud that I have had the oppor- tunity to acquaint my colleagues with this splendid record of achievement of the gentleman from the Second Illinois District in his long and honorable career in public service to his State and the Na- tion. -I know you feel, as I do, a deep sense of pride in sharing this happy occasion of the birthday anniversary of our good friend, Barratt O'Hara. Blabbermouths in Washington EXTENSION OF REMARKS oF HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. SMITH of Wisconsin. Mr. Speaker, Billy Rose, in his syndicated column entitled “Pitching Horseshoes,” calls attention to a Washington practice which should be stopped. There are too many experts in this city who, with a few drinks under their belts, tell all they know. I commend this article to all Members of the House, as follows: Hon. Harry S. Truman, The White House, . Washington, D.C. Dear MR. PRESIDENT: It may interest you to know that there’s a man in New York who knows exactly how many atom bombs we have, exactly where they’re hidden, and ex- actly how they're guarded. What’s more, he is connected in no way with the Atomic Energy Commission, the Army, Navy, or any other branch of the Government. With your patience and permission, I'd like to tell you about him. Not long ago, this man—the editor of a national magazine with more than 15,000,000 readers—went to Washington on routine business. ‘The day he arrived he was invited to a dinner party in Georgetown, and over
. APPENDIX TO THE CONGRESSIONAL RECORD the postprandial brandy he got into a bull session with several members of the military and bureaucratic elite. When the subject of the atom bomb came up, a high-ranking official laughed. “Don't worry about our A-bombs,” he said, and then, without prodding or prying, he pro- ceeded to tell the editor and the other guests precisely how many bombs we had, where they were stored, and the security measures in force in the area. At the end, the drinky- talky notable smiled as if to say, “You folks didn’t know what a bright boy I was, did you?” The editor, an old friend of mine, told me the story a couple of days after he got back to New York, and I’ve been using a lot of barbiturates ever since. He’s a zipper-lipped citizen who edits his thoughts as carefully as his copy, and I be- lieve him when he says that Washington is currently a-busting with blabbermouths who, at the drop of a daiquiri, blurt out top secrets with only a prefaced “This is off the record” to tidy up their consciences. Fortunately for us, this magazine man is not apt to talk out of school or turn, but it stands to woeful reason that if he can come away from Washington with this kind of in- formation a lot of other people can too—in- eluding those who cash their pay checks in the First National Bank of Moscow. In this day and dilemma, Mr. President, government by gossip can easily mean the end of government by consent, and from where I sit and tremble, it’s high time you pressed a few buttons and initiated some big scale tracking and cracking down. If heads must fall, then let them fall—and if you want -to take that literally, it’s all right with me, not to mention 150,000,000 other Americans who don’t own a bomb shel- ter or a lead-lined tuxedo. Respectfully. Bruty Rose. P. S.—It may further interest you to know that, according to a recent estimate, the per capita consumption of hard liquor in Wash-~ ington is greater than that of any other town in this country. Brannan Farm Plan EXTENSION OF REMARKS HON. CHARLES W. VURSELL OF ILLINOIS . IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. VURSELL. Mr. Speaker, since Secretary of Agriculture Brannan is touring the country in an effort to put over his Brannan farm plan, I think the farmers should examine it very care- fully. . First, the demand for this bill has not come from the farmers. It came from the CIO labor leaders who figured this scheme out to give those in the big cities lower food prices through subsidies paid out of the Federal Treasury to the farm- er on about two-thirds of his products. The farmer would doubtless be criticized for accepting the subsidy, while those living in the cities would get the bene- fits to help pay a part of their grocery bills. IT IS A POLITICAL PLAN It is a political bill which has great appeal. It says to the farmers, “The Government will guarantee you a high income”; and it says to labor and the consumer, “We are going to give you low~ priced food.” That comes mighty close to utopia, if it is true. WHO WILL PAY IT? Uncle Sam. And the only money Uncle Sam has is what you and I give him through taxes. That means every farmer, every consumer and all of us will have to pay higher taxes to get the money to carry out this gigantic spend- ing operation. WHAT WILL IT cost? The Department of Agriculture of Il- linois has said, “It will cost as much as the total Federal budget before the war.” That was about $10,000,000,000 a year. This Department also estimated the Brannan plan for hog supports alone might cost $700,000,000 annually. The American Farm Bureau says on milk arone it would cost $2,480,000,000 annu- ally. This cost is only on two products out of many. A study of the bill indicates it would cost $10,000,000,000 annually. CAN FARMERS DEPEND ON CONGRESS? One of the great dangers to the farmer in the Brannan plan is that each Con- gress has the power to appropriate, or not appropriate, the money to carry out the plan. Suppose any Congress in the future would say, “With a $267,000,000,000 debt, and a $10,000,000,000 deficit, we cannot appropriate over $4,000,000,000,” when $8,000,000,000 or $10,000,000,000 is nec- essary. The farmer would be ruined and left holding the sack. It is dangerous for the farmer to be put in the position where he must de- pend on the action of Congress for many billions of dollars of his income. To swap the present support program, which is the result of the best thinking and study for many years of the ablest farm leaders in the Nation, and the ablest members of the Agriculture Committees of the Congress, for such an untried scheme would be a tragic gamble on the part of the farmers and the Mem- bers of Congress. BETTER IMPROVE PRESENT PROGRAM If we are to have any farm program, it would seem wise to retain the best policies of the present program and try to improve upon it for the future. A prosperous agriculture is so important to the entire economy of the Nation that its program must be built on sound and proven policies, and not be sacrificed on the political altar of any party. FINES AND JAIL SENTENCES The bill contains 15 pages of penal- ties against farmers who violate its regi- mentation and controls. Here is a sample of just one of many sections: “It provides that all farmers must keep such books and records and make such reports as may be required by the Secretary; and that if they fail to keep these reports and records they will be deemed guilty of a misdemeanor and upon conviction fined not more than $500. And if they make a false report or record they shall be guilty of a misdemeanor and upon conviction fined not more than $1,000 and imprisoned for not more than a year.” If this bill ever becomes a law, we may have to have more farm hookkeepers, or bigger jails. A3143 Why I Am Proud To Be a Mississippian EXTENSION OF REMARKS oF HON. JOHN BELL WILLIAMS OF MISSISSIPPI IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. WILLIAMS. Mr. Speaker, under leave to extend my remarks in the Ap- pendix of the Rrecorp, I include herewith an article written by the very capable and genial editor of the Summit (Miss.) Sun, Mrs. Mary D. Cain, entitled “Why I Am Proud To Be a Mississippian”: Way I Am Proup To BE A MISSISSIPPIAN (By Mary D. Cain) To ask me why I am proud to be a Mis- sissippian is like opening giant floodgates; once I get started talking about why I am proud, an efiort to stop me is comparable to trying to dam such waters. Proud to be a Mississippian? Of course I’m proud! I’m a Mississippi woman and if there is anyone in the world who has a right to be proud of her State, it’s a Missis- sippi woman. The Elizabeth Female Acad- emy at Washington, Miss., was the first school in the United States to confer degrees on women; the bill for the establishment of the first industrial college for women was drafted in Claiborne County; MSCW is the oldest and one of the largest State-supported schools for women in the United States; Mississippi was one of the first governments in the world to recognize the right of mar- ried women to own property. Today Mis- sissippi grants to her women citizens every right and privilege she gives her men with the exception of jury service and the right to examine banks. These rights are in the making, I feel confident. Yes, I am proud to be the daughter of a State that has been so kind to its women, helping us to achieve full stature as citi- zens, but it goes much deeper than that. ANGLO-SAXON HERITAGE We are credited with more race prejudice in Mississippi, I suppose, than almost any State in the Union; largely because we are so proud of the pure Anglo-Saxon strain that runs through us * * * a heritage that we jealously guard. But because we believe in segregation it need not be assumed that we are failing to do our part for our Negroes. I recall with pride that Mississippi was the first State in the Union to provide an agri- cultural and mechanical college for her Negroes; over at Mound Bayou, Mississippi has given the Nation the first example of Negro self-government. True, we haven’t given our Negro citizens all we would like to, put people who criticize are forgetful (or ignorant) of the fact that we have come a long way with them since the days of the Civil War when our beloved State lay pros- trate and almost helpless. And we did it without any Federal help. We had no Mar- shall plan. We are still self-reliant; we still want no Marshall plans. Over at Itta Bena we are establishing a new Negro college which will do much to develop better Negro teachers. At Alcorn and Jackson Colleges, budgets have jumped proportionately with those of our white in- stitutions of higher learning, and salaries compare favorably. Negro schools which have the support of religious denominations are doing an excellent job in the State; agri- cultural high schools for our Negro youth are among the foremost in the Nation; and the work of our Negro county agents and home demonstration agents further give the lie to loose statements concerning the status
A3l44 of the Negro in Mississippi. True, our Ne- groes still have a long way to go, but I am proud of our Mississippi Negroes for having come so far in so short a time, and of Mississippi's white citizens for dealing with them so sympathetically and in such under- standing of their cultural lag. Somewhere in my Sun file is a list of the prominent Negro educators who were trained in this State but who took their talents to greener fields and today hold high positions in the educational worlds of other States. Some- how, I always feel (because service is the only excuse I have ever seen for living and the field here is so wide) that these men and women have let their people down by not staying here to help in elevating the educa- tional and cultural standards of their race. Maybe I’m wrong, but that’s the way I feel. EDUCATIONAL LEADER Because of our Negroes and their cultural lag, we are said to be at the bottom of the scale in the field of education, but no one can deny that Mississippi spends a larger percentage of tax income on educa- tion than any State in the Union. And we have more yourg men and women in col- lege, in proportion to white population, than any State in the Union. It is our boast that Warren County had the first consoli- dated high school system in the world and that today, at Crystal Springs and Cleve- land, we boast the world’s two largest con- sOlidated schools. Our Ole Miss school of law is the fourth oldest State-owned law school in the United States and our State library at Jackson is said to have the third largest collection of law books in the Na~- tion. Our daily and weekly newspapers compare most favorably (maybe I’m par- tial, but I really think we have an edge) with those of other States, and at West Point we boast that we have the smallest to\-n in the world with a daily newspaper served by full leased A. P. wire. -And, despite the posi- tion we have been given on the scale, we have more authors and poets who are na- tionally and internationally known than perhaps any State in the Nation. As Clay- ton Rand once said, “We don’t read books * * * we just write ’em.” At any rate, we look with pride to the long and challenging list of renowned Mississippi au- thors and poets. And mark this with pride when other States boast of educational achievement: Mississippi was the first State in the Union to establish institutions for our deaf, dumb, and blind. This is far too long already, but how can I forego the pleasure of boasting of our long line of distinguished statesmen, our orators, who have long fought for the American way of life? And how can I relinquish the de- light of expressing my feeling that today Mississippians stand in the forefront of those who are fighting for restoration of constitutional government to our beloved America? Our statesmen, our orators, are still among us. Mississippi’s public health service program is recognized as the foremost in the Nation, and Harrison County has the oldest public health unit in continuous operation of any county in the United States. We have plo- neered in so many fields, but lack of space forbids that I go into this. Mississippi has so many things that are the largest in the world: cotton plantation, tung-oil plantation, clay~made filter factory, apiary, tomato center, pecan nursery—so many things in which we take the lead here in the South—a stone, marble, and granite industry, our cheese plants, our infants’ gar- ments factory, our oyster banks off shore from Pass Christian. Eighty percent of the Nation’s shrimp supply is caught by Missis- sippi fishermen and is shipped and packed by Mississippi workmen. - Mississippi has over 4,000,000 acres of land under lease for gas and oil production and today we are booming in this respect; the strides made by industry under our balance agriculture with industry program have com- manded the attention and respect of the en- tire Nation. We have one of the finest sys- tems of paved highways in the Nation, and it is growing steadily. We have the most perfectly preserved of all the major battlefields of the world at Vicks- burg; the first monument raised in the South to honor our Confederate dead was at Lib- erty; Memorial Day had its origin at Colum- bus, Miss. The First Mississippi Regiment is the only one that has participated in every United States war since 1798. Need I goon? The list is endless. In giv- ing reasons for my pride in being a Missis- sippian I could exhaust both myself and my readers, but never my subject. Mussissippi may have her critics—and she does have some bitter ones—but you will never find me among them. Considering the fact that we had so much prior to the Civil War (12 of the United States 75 millionaires lived in Natchez, Miss., and our whole State boasts a cultural background) and that we have had to battle every inch of the way to our place in the sun which we enjoy today—a place of which every Mississippian has a right to be proud—I offer no apology for my State. It has my complete loyalty, my affection, my understanding, and all of my pride. Point 4 Screwball Spending EXTENSION OF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. SMITH of Wisconsin. Mr. Speak- er, aS a part of my remarks I include an editorial by Robert Bliss, editor and pub- lisher of the Janesville Gazette, Janes- ville, Wis., regarding the point 4 program and the American taxpayers’ responsi- bility in the underdeveloped areas which I think is excellent: Point 4 ScrewBaLL SPENDING The peculiar thinking of some of our Wash- ington long-hairs tickles one’s curiosity as to how they arrive at their spending hallucina- tion. For example, thanks to the Senate For- eign Relations Committee, the President’s dreamy point 4 program is being amended— but not enough. The wild guarantees of private investments abroad did not deter the House from passing the bill. It would allow private investors to keep the profits they make abroad but would saddle the American taxpayer with any losses, Does that make sense? The House bill had Secretary of State Ache- son’s approval in these words: “Protection from some of the risks—to foreign invest- ment—cannot be provided by treaty no muc- ter how sincere the intentions of the par- ticipating governments. Therefore, a bill has been introduced (to guarantee and insure private investors) specifically against ex- propriation, confiscation and seizure, and against inability to convert local currencies.” The foreign governments may try, but they are often completely unable to prevent sei- zure of American property or forbid conver~ sion of currency. We recall how often gov- ernments have been overthrown. But Secre- tary Acheson would have Mr. and Mrs. Amer- ican taxpayer make good such losses. How far will $45,000,000 go in this kind of thing? Chairman Connattyr, of the Senate committee expects it will be only a starter. APPENDIX TO THE CONGRESSIONAL RECORD One wonders where there may be an end? The ECA (European Recovery Administra- tion) should be terminated by June 30, 1952, put Administrator Paul Hoffman doubts if expenditures for foreign aid can be held be- low $2,000,C00,000 annually. Are American taxpayers ready to subsidize point 4—-underdeveloped areas everywhere? We are ready to help with our know-how, but some Officials in Washington soon should learn that the United States does not owe the rest of the world a living, nor can it buila TVA projects on the Nile or Euphrates or any other foreign river—nor should it. Such talk is pure nonsense. Even if 1t were possible, tke peoples we set out to help by our paternalism could not take advantage of our spendthrift lunacy. From illusions of point 4 issued by the Foundation of Economic Education, Irving-~ ton, N. Y., we learn: 1. Point 4 proposals parallel American Communist proposals of 1944. 2. Capital diverted under point 4 would not flow into such projects, would simply shift from private to government or social- istic projects—it would not add to capital. 3. We cannot get wealth by giving wealth away. What capital development we give away will decrease by that much our own capital. 4. Point 4 projects are mo more practical than the Lustron house loans or the British peanut fiasco—Britons subsidized peanut growing in Africa, but it would not work— money was wasted. 5. We already have the financial means to back point 4 progams in the International Bank for Reconstruction and Development and Export-Import Bank. : 6. Government hand-outs to foreign coun- tries will no more build sound recovery than it builds self-supporting citizens in this country. It is the opposite of what experi- ence has already taught us. Lending our Know-how to countries which want to rebuild is one thing. Spreading gold before unfortunate peoples who have not the skill or desire to use it for their benefit is pure waste. Generoso Pope EXTENSION OF REMARKS oF HON. ABRAHAM J. MULTER . OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. MULTER. Mr. Speaker, the city of New York today is mourning the loss of another great American. Generoso Pope was the owner and publisher of Il Progresso, an Italian-language paper in the city of New York, which under his guidance was in the forefront in teach- ne democracy and the American way of fe. He arrived in this country 49 years ago, a poor immigrant boy, but by dint of his own efforts, taking advantage of the opportunities of this great land of ours, he educated himself while earning a livelihood, and then went on to reach great heights in the business and public life of cur community. He was an out- standing businessman, a great philan- thropist, and a leader in civic life. Hav- ing learned his lesson of American de- mocracy so well, he successfully lead the fight against communism in his native Italy. The country has lost a good citizen:
APPENDIX TO THE CONGRESSIONAL RECORD Congressional Secretaries Get First-Hand Knowledge of Cotton Exchange EXTENSION OF REMARKS oF HON. FRED L. CRAWFORD OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. CRAWFORD. Mr. Speaker, the Congressional Secretaries’ Club, which was formed about 15 years ago to pro- mote better relations between our con- gressional offices and the departments of government and to provide an in- crease in knowledge for our office staffs in many fields with which we are con- cerned, visited the New York Cotton Ex- change over the last week end and learned at first hand of the operation of this great commodity exchange. The visit to the Cotton Exchange was a part of the program of the club’s an- nual New York trip, which usually fulfills the club tradition of carrying on an educational as well as a social program. After attending a briefing session at which our secretaries met officials of the exchange and heard addresses by Mr. Charles B. Vose, president of the New York Cotton Exchange, and Mr. Perry E. Moore, its vice president, they were taken to the floor on which the trading pit is located and there witnessed the last hour of trading. Since the remarks of Mr. Vose to the congressional secretaries so clearly ex- plain the functions of the exchange, I wish to include them here: ADDRESS BY CHARLES B. VOSE, PRESIDENT, NEW Yore CoTrron ExcHANGE Ladies and gentlemen, I am delighted to have this opportunity of welcoming this congressional secretaries group to New York, on behalf of the members of the New York Cotton Exchange. It gives us an opportunity to become per- sonally acquainted which is, indeed, a pleasure. From another point of view, there is the fact that so frequently we all suffer from a lack of personal acquaintanceship and also from a lack of knowledge of each other’s efforts and endeavors, It is grand that your visit will remedy poth of these situations and as our program for you includes a visit to the trading floor of the New York Cotton Exchange, you will then see, first-hand, the actual operations of our exchange and meet more of our members. Unfortunately, there is much misconcep-~ tion and a real lack of information concern- ing the broad aspects of the part played by commodity exchanges in the production, marketing, manufacturing, and distribution of the Nation’s agricultural products and, as a result of this unfortunate situation, it frequently happens that the commodity ex- changes become whipping boys for vary- ing events, for which they are neither the reason nor the cause, As you all know well, lack of understand- ing sometimes lends itself to misapprehen- sion and particularly is this evident in the case of our legislators who, on the face of it, could not be expected to be trained in and to understand all phases of national busi. ness. It is, therefore, particularly pleasing to me to have this opportunity of attempting to briefly portray for you the utility of and the necessity for the cotton exchange, in the hope that this better understanding on your part will be enlightening to those who are called upon to cast their vote on all types of farm legislation, tax matters, and on kin- dred bills which affect such a large percent- age of the national farming and industrial population. How important the proper functioning of the cotton markets and the cotton ex- changes are to you may be shown by the fact that there are 1,500,000 persons grow- ing cotton in America, in some 18 States, from coast to coast, and that for many of these States cotton is the principal cash cer-p and source of wealth. Cotton manu- facturing employs over 500,000 workers from Mcsine to Texas. There are over 1,000,000 people employed in the garment trades where cotton still outranks its closest competitor in yardage by 5 to 1. In addition to farmers and mills, there are banks, merchants, shippers, oil crushers, wholesale, and retail traders and other elements of our economy having a vital interest in cotton. One way or another it has been estimated that about 1 out of 10 of our population are directly or indirectly affected by cotton in their livelihood. So omnipresent is cot- ton in our affairs that it is clear without further illustration that free enterprise and cotton go hand in hand, and that they stand or fall together. Fundamentally cotton merchandising does not greatly differ from that of other goods sold without benefit of a futures exchange. If you were a drygoods retailer needing goods, you would negotiate with your regional wholesaler, or perhaps with one of the larger converters or fabricators or a mill sales or- ganization. You would look over the styles and qualities offered, weigh the price quoted, and by private trade, purchase to your best advantage. - Similarly, if you were a mill buying cotton suitable for making print cloth or bedsheet- ing from a cotton merchant, or if you were that merchant buying various kinds of cot- ton from a primary dealer, you likewise would negotiate your purchase, by private trade, and to your best advantage, with no shouting or fanfare about it. Let us now see how this phase of the in- dustry is related to the futures market. Amid the towers of lower Manhattan, we find the cotton exchange building with a great three-story room on its top floor where all trading is conducted. There is a ring in its midst around which many brokers are congregated. They are shouting bids and offers at each other. The clamor at first seems unintelligible, but we soon find great amounts of cotton are changing hands. As each trade is made, reporters flash it by finger signal to a rostrum near the ring. Operators there telephone it to men who chalk up every trade, its time and price, on great blackboards, or telegraph it wherever in this country or abroad the price of cotton is important to business people. We find also that the orders to buy and sell that brokers are executing are flowing to them from telephone booths all around the room and telegraph offices on the floor. Closer inspection shows us that this speed of transactions in cotton is possible for just one reason. Every order is for 100 bales, called a contract, or for multiples thereof. Also there is no haggling over qualities of cotton, for every contract is based on Mid- dling 15/16 inch, although when the cotton matures it is the privilege of the seller to deliver certain other grades and staples, with the price adjusted to actual differences of value as then reported by the Department of Agriculture. All trading in cotton futures is for delivery at later dates. Thus a sensi- tive, fluid, market results since the brokers who represent buyer and seller have only to agree (1) on the price, (2) month of delivery, and (8) on the number of contracts, that A3145 is—whether 100 bales or a multiple thereof. As a result of the constant flow of business, price changes are close, and normally whether rising or falling values change but one one~hundredth of a cent between trans- actions. A final thing we learn is that in the vast majority of cases a purchase and/or sale of cotton on the exchange, for later de- livery, is usually liquidated by resale or re~ purchase. What is the reason for this exchange and what does it contribute to cotton marketing? The answer lies in the nature of cotton it- self. Cotton is a vast enterprise. Millions of bales are grown annually. Wind, rain, drought, sun, insects, temperatures, and Government policies all affect the supply. A host of factors, on the other hand, affect de- mand. Ownership of cotton thus involves tremendous capital risk. Again cotton is harvested in a few months, but it is con- sumed throughout the year. Someone must buy it and hold it until the spin- ner needs it. Without the New York cotton exchange and like institutions, a merchant would have to buy cheaply from growers and sell dearly to mills, adding a high mark-up, because of the many occasions when his market judgment would be incorrect and therefore he would have to bear great losses. Instead, cotton merchants as well as mills and many other handlers protect their cot- ton transactions by the method we call hedging. Simply illustrated, the merchant buys cotton from time to time, acquiring a stock for mill requirements, which will show up later. As he makes these purchases of the actual cotton, he sells corresponding amounts of cotton futures contracts on the exchange. He thus hedges, or offsets, the inherent risk of price change while he is waiting for a customer. If prices rise, the actual cotton he put in stock will be worth more, but the futures contracts he sold will also reflect the higher price, so that the gain on the actual cotton will be offset by the loss on cotton futures. If prices fall, the loss on his stock of cotton will be offset and insured by a profit in the cotton futures. Now that may sound like profitless pros- perity, but let me assure you it is not. The merchant has gotten rid of his big risk of major price change. He can now assort his cotton into the exact qualities he expects mills to require, thus performing an essen- tial service, and he will profit according to the judgment and merchandising ability he shows in selling particular qualities to the mills, He has thus avoided speculating in a vol< atile commodity. He has done a useful mer- chandising job. His profit is one of selling skill, not of luck or chance. He can do a bigger business. His credit is good at the bank. His profit margin frequently is one of the narrowest in all commerce. He can pay more for cotton, and charge less for it, than if he had to shoulder the whole risk of price change over extended and uncertain periods of time. The hedge system, in this and other forms, is used by many people, buyers and sellers of cotton, merchants, mills, and others, There are hedges sold and hedges bought, transactions offsetting cloth business as well as cotton business. In this brief talk, we cannot enter into a detailed study of this long-established and highly efficient method of doing business. But we must point out one important factor. It is readily seen that buying and selling orders from merchants and mills will hardly coincide in time and quantity. Again the essence of futures js that both buyers and sellers seek to insure themselves against price change, and the insurance must be readily available whenever wanted and whether or not the incividual is ready to act now or a week from now. Cotton mills furthermore cannot be expected to insure merchants, or
A3146 merchants to insure mills. There must be another source of capital ready at all times to accept the risks which the trade inter- ests desire t. minimize. We thus find a class of traders in futures who are specula- tors or investors, constantly trading in hope of personal gain. Their activity helps to absorb and to underwrite the price risks which cotton men and textile men wish to eliminate. Needless to say speculation is meticulously regulated by the exchange. A careful check is constantly kept on speculative dealings. Any tendency to excess is corrected promptly. For the exchange recognizes that it operates in the interest of the trade and that only to the extent that speculation provides the risk capital necessary to serve the trade’s hedging needs is speculation economically justifiable The record testifies to the value of properly controlled speculation, and to the success of the exchange in controlling it. As ‘I said at the outset, cotton is a bulwark of our economic liberties. Freedom of en- terprise, freedom of opportunity, go with a soundly functioning cotton industry. The speculator plays an important role in helping to create and maintain broad, fluid mar- kets. Every business involves risk, but the exchange provides means of eliminating great risks from the operations of those in the cotton industry who use these facilities by transferring the risk to insuring specula- tors. With time so limited, it does not seem possible to go into technicalities as my sole purpose was to illustrate to you the necessi- tous role played by the exchanges in the movement of agricultural products. Before closing, however, I would like to merely say that when referring to specula- tion, it should never be forgotten that there is speculation in buildings, there is specula- tion in homes, there is speculation in real estate or, in other words, there is specula- tion in every form of our national existence and it will so continue as long as we are fortunate enough to remain in a free econ- omy where venture cerite] can be used ac- cording to the vcur u- .' .ne’s own free will. I am. very happy to have had the pleasure of seeing you, making your acquaintance, and attempting, with these few remarks, to bring to you a clearer understanding of the functions of the commodity exchanges in general, and the New York Cotton Exchange in particular. Hoover UN Plan EXTENSION OF REMARKS OF HON. ROY 0. WOODRUFF OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. WOODRUFF. Mr. Speaker, under leave to extend my remarks in the Rrec- orD, I include the following article by Walter Trohan, from the Washington Times-Herald of May 1, 1950: Hoover UN Puan Recarts Tracic Dears (By Walter Trohan) Former President Hoover’s proposal for re- organization of the United Nations without Communist nations in it has served to em- phasize New Deal and Fair Deal playing ring- around-the-rosy with the Soviets since 1933. As President, Hoover had refused to rec= ognize Russia and in 1941 he warned the American people that collaboration with Joseph Stalin to bring freedom to mankind was @ gargantuan jest. Last Thursday night he told the Nation’s editors he used the wrong adjective, “I should have said tragic.” Hoover noted that Soviet Russia has vio- lated more than 35 solemnly signed agree~ ments in a dozen years and instead of ex~ panding liberty the Reds have enslaved a dozen nations and 600,000,000 human beings. STARTED BY ROOSEVELT Many observers have traced the rise of Soviet Russia as the No. 1 threat to civiliza- tion and liberty to democratic acceptance of communism and Communist programs in the dizzy international whirl of the last two decades. Until President Roosevelt entered the White House the American Government had refused to recognize the Communists. Re- publican administrations had refused to rec- ognize a nation ruled by men who relied upon mass murder for power and who boasted of bad faith as the keystone of their foreign policy. EXTENDED HAND TO STALIN In 1933, against the advice of many mem- bers of his party and over Republican pro- tests, Roosevelt extended the hand of fellow- ship to Josef Stalin. He gave a cordial and friendly welcome to Soviets as members of the family of government leaders. Maxim Litvinov, Soviet Commissar for For- eign Affairs, was welcomed into the White House in the Christmas holidays. The American people were treated to a radio play in which the Russian husband and family telenhoned seasonal greetings to his Moscow fimly Persons who attempted to warn against the Soviet dangers were ridiculed and smeared. Notable among these was the late Dr. Wil- liam E. Wirt, of Gary, Ind., who revealed that insiders in the New Deal regarded Roosevelt as the Kerensky of an American revolution. Two years later the American people were given the inside story of the recognition, which revealed Litvinov as boasting he had put one over on the President. Dr. David H. Dubrowsky, former director of the Soviet Red Cross, who was living in the Soviet Washington headquarters at the time Lit- vinov returned from the White House after reaching the agreement, told his story to the House Un-American Activities Committee. Dubrowsky said Litvinov entered rubbing his hands with glee and reported, ‘Well, all is in the bag; we have it.” “They [President Roosevelt and Secretary of State Cordell Hull] wanted us to recognize the debts that we owed them, and I promised ‘we were going to negotiate, but they did not know we were going to negotiate until doomsday,” Litvinov continued, according to Dubrowsky. LITVINOV SARCASTIC “The next one was a corker. They wanted me to give them freedom of religion, and I gave it to them. I was very much prompted to offer that I will collect all the Bibles and ship them out to see them.” Dubrowsky also said that Litvinov regarded the promise not to propagandize in the United States as not worth the paper it was written on because it was a promise made to a bourgeois state. The propaganda pledge was almost imme- diately broken. In the summer of 1985 Roosevelt was moved to protest. Stalin ig- nored the protest, and Roosevelt did nothing. The Roosevelt recognition shed respectabil- ity over the comrades. Hari Browder, gen- eral secretary of the Communist Party in America, was able to report to Moscow that the New Deal had thrown its doors open to the party, that the New Deal was a collectivist enterprise in which capitalists were being hunted down and that the profit system was being destroyed in America. RED HELP FOR F. D. On the eve of the second term election, Comrade George Dimitroff, keynoter of the APPENDIX TO THE CONGRESSIONAL RECORD Third International meeting in Moscow, which ended in August 1936, threw party support behind F. D. R. in the American presidential campaign. Dimitroff urged that “the Communist Party should support the election of Presi- dent Roosevelt, because his defeat might en- able forces now opposing our forces to give us a body blow.” Similar sentiments were expressed by Reds in this country. Hight years later Reds claimed their support elected F. D. R. to a fourth term. From 1934 to 1939, according to Dmitry 2. Manuilsky, member of the executive commnit- tee of the Communist International, the Communist Party was able to increase its members, after the recognition, from 20,060 to 90,000. Each party member he emphasized was a responsible leader of 15 to 20 fellow travelers. This meant the New Deal had en- couraged recruitment of 1,059,000 Commu- nist followers in 5 years and that in 1939 a total of 1,350,000 Communist Party liners were active in the United States. RED INFILTRATION Many came into the Government. Rec- ords of the House Un-American Activities Committee showed that the White House re- peatedly sidetracked and disregarded evi- dence of Communist penetration into the Government. In Washington love feasting with Stalin was excused on the ground that Stalin was an enemy of Adolph Hitler. In 1939 Stalin pulled the rug out from under these apolo- gists by negotiating the pact with Hitler that started World War II. Mr. Roosevelt in the White House was silent on the pact., Russia invaded Poland with Hitler. The White House still was silent. Estonia, Latvia, and Lithuania were invaded by Stalin. Mr. Roosevelt in the White House was still silent. Stalin threatened Finland. Roosevelt ex- pressed hope that Stalin would not impair Finland’s independence. On November 29, 1940, the Soviets invaded Finland. ROOSEVELT’S EXCUSE On December 29, 1940, Roosevelt used Rus- sian aid to Germany as an excuse for Ameri- can aid to Britain, saying “it is no more un-~ neutral for us (to send aid to Britain) than itis for * * * Russia and other nations near Germany to send steel and oil and other war materials into Germany every day of the week.” On February 10, 1940, Roosevelt uttered his strongest condemnation against the Soviets. He harangued the American Youth Con- gress against the absolute dictatorship of Russia and was soundly booed by members of the organization, which was labeled as a Communist front in Congress. In April 1941 the Soviets, undisturbed by expressions of American disapproval, sought to strengthen their position by entering into @ nonagression pact with Japan. Negotia- tions with this end of the Rome-Berlin- Tokyo axis were in progress when Hitler at- tacked Russia June 22, 1941. Roosevelt’s condemnation of Russia’s abso- lute dictatorship and wanton disregard for law were forgotten overnight. Russia be- came a noble democratic defender of freedom against Nazi aggression, . Another to join in praise for the Soviets was Wendell Willkie, GOP candidate for Pres- ident in 1940, who won the nomination through machinations of the White House with Wall Street internationalists, Willkie was an ostensible opponent of White House foreign policy in campaign speeches, but had secretly assured internationalists he was with them if he should be elected. He joined with the White House after the elec- tion and dismissed his criticisms of New Deal foreign policy as campaign oratory at a Sen- ate hearing.
APPENDIX TO THE CONGRESSIONAL RECORD After Pearl Harbor the chorus of adulation for Russia swelled into an oratorio which drowned out things American. WHITE HOUSE AIDED HISS There was only one jarring note in the great friendship and that came from Mos- cow. The Reds demanded a second front and ignored the dying of Americans in the Pacific, Africa, and Italy. Russian propa- ganda made it appear the Soviets were fight- ing alone. At Tehran President Roosevelt played up to Stalin at the expense of Churchill at various conferences and festive occasions where drinks flowed freely. The official picture of the conference reveals Stalin wearing a cat- swallowed-the-canary look, Roosevelt as worn but pleased with himself, and Churchill as seething with inward fury. At Yaita the wooing of Stalin went even further. Roosevelt continued the secret agreements and understandings which gave the Soviets a chain of satellites in eastern Europe and paved the way for extension of Soviet influence in Asia. Prominent in the Yalta Conference was Alger Hiss, then in the State Department. Hiss is the convicted perjurer spy, revealed in the testimony of his accuser, Whitaker Chambers, to have been a member of the Soviet spy ring in Washington for years. Hiss was secretary general of the United Nations founding conference at San Fran- cisco in 1945. He owed his appointment to the White House. ident of the Carnegie Foundation through the sponsorship of John Foster Dulles, for- eign policy adviser to Governor Dewey, twice GOP Presidential candidate. ASSERT HISS WAS LOYAL Defenders of Hiss have said that if he did turn over secrets to the Soviets, he did so because of Roosevelts’ cooperation with Rus- sia. Friends say Hiss was loyal to Roosevelt in helping an ally. Hiss’ friends include State Secretary Ache- son, his State Department associate, who said he would stand by his friend even after Hiss was -convicted as a spy-perjurer. Hiss was only one of the officials linked to Russia. Government and congressional investigators have disclosed that their files contain evidence reflecting on the loyalty of more than 2,200 Federal officials and em- ployees. More than 500 of these were re- ported to occupy key posts with access to confidential information of high interest to the Soviets. There has been a long chain of sudden deaths, suicides, mysterious deaths, and strange accidents in the New Deal high com- mand. Many of these have befallen offi- cials linked to the Communist spy disclo- sures or to various failures of American policy in dealing with the Reds. Roosevelt and resident Truman repeat- edly balked investigation into Communist penetration. Mr. Truman, who rétified the concession made to Stalin at Yalta in the Potsdam conference, began as an enthusi- astic follower of the lat'd-Russia policy. Before Lis nomination in 1948 Mr. Truman told an audience “I like Joe Stalin.” He de- scribed Stalin as a gentle soul, a prisoner of the Polithbt :o. Since that time Mr. Truman has switched his position to anti-Soviet. servers have speculated that he hopes to win re-election in 1952 by keeping the cold war crisis alive. BROWDER AND NEW DEAL Browder entered into wholehearted co- operation with the New Deal. After the de- feat of Germany and Japan, Browder was removed as party leader, which signaled the end of Communist cooperation with the New Deal and with capitalism. During the war capitalists juined hands with New Dealers and Communists in promoting interna- tionalism. Later he was named pres- © Political ob- ° In the trial of Harry Bridges, west coast Communist labor leader, it was revealed that Washington intervention had prevented his deportation. It was said that Bridges would mever have been prosecuted had Roosevelt lived. After the death of Roosevelt Red propa- gandists called for bringing American soldiers home immediately to ward off any possible check c* Red aims. In complete submission to the Reds the Allied cone in Berlin was left without any avenue of ap- proach, which later forced the costly airlift. There Seems To Be Much Iron Ore Near the Minnesata Mesabi Range, After All EXTENSION OF REMARKS or HON. JAMES E. VAN ZANDT OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. VAN ZANDT. Mr. Speaker, those who are advocating the construction of the St. Lawrence seaway are now using the shortage of iron ore in Minnesota as a reason why this billion-dollar proj- ect should be built. According to an article in the April 14, 1950, issue of the Vindicator-Tele- gram of Youngstown, Ohio, there seems to be a lot of iron ore left on the Mesabi Range in Minnesota. The article referred to is as follows: THERE Szerms To BE MucH OrE Near MESABL RaNGE, AFTER ALL (By John W. Love) About the time we began talking of a pos- sible shortage of iron ore in the Lake Supe- rior district several years ago, lofty gentle- men in the ore business allowed that iron would probably be found there as fast as it was needed. The inference by us outsiders was that the experts had notions where the ore lay but didn’t want to uncover it too fast, on ac- count of the land taxes. Much furious exploring has been going on since then, however, a lot of sloshing through muskeg and jungle, and ore has been turned up in hundreds of millions of tons total in Labrador, Venezuela, Mexico, and other places. ORE TO BURN But the lords of Lake Superior may have been right the first time, even though they or others got pretty nervous later. There may be enormous quantities of yet-un- touched hematite not very far from where it has been taken out for nearly the last century. Hints have been drifting down from the Northwest concerning magnetic indications of large ore beds in Minnesota, and of great deposits in the Steep Rock property back of the Canadian shore of Lake Superior. It is at least imaginable that by the time the Labrador ore is coming up a St. Law~ rence seaway and Venezuelan ore by the port of Baltimore, iron will be in sight in as large a quantity as ever in the Superior district. Considering all the places where ore has been found, it may yet run out of the Western Hemisphere’s ears. DOODLEBUG FINDS IT Reports from Minnesota concern the rev= elation of two potential iron formations, one in the northeastern part of the State, the other in the .west central. Federal and A3147 State geologists have been cooperating in an aerial magnetic survey since 1947. The word now is that something of sig- nificance lies buried under the glacial drift in a belt extending 30 miles across northern Itasca County, west of the Mesabi Iron Range, Likewise in a belt of 80 miles length and up to 10 miles width in Otter Tail and Becker Counties. The existence of ore has been known there for many years, but it lay too deep. The geologists have been using the magnetometer, or “doodlebug,” carried on the end of a cable froma plane. More reli- able exploration by drill is likely to follow. ANOTHER 300,000,000 TONS Steep Rock Iron Mines of Steep Rock Lake, Ontario, and Cleveland (C. S. Eaton, the chairman) has been drilling around on its own property, and so has Inland Steel of Chicago on a leased portion. In two main ore bodies indications were found some time ago of the presence of something like 200,- 000,000 tons. Exploration on the Inland concession during the winter is said to sug- gest another 100,000,000 tons. The Inland Steel geologists and their crew spent several weeks running diamond drills on the ice of Steep Rock Lake. The lake itself is about 250 feet deep, and the drills have been going several hundred feet beyond the bottom Reports are that the ore runs 50- to 68-percent iron and to be spread over enough area and depths to indicate the total tonnage mentioned. The lake itself would have to be pumped out, of course, and that would take some months. Thus, ore in considerable quantities exists in three segments several miles apart. The twisted lake is 15 miles long, and its shape is roughly that of the ore body which Joseph Errington claimed in 1940 that he had out- lined. I met Errington at that time, before any Americans were interested, and he said high-grade iron was to be found along its entire bottom. If the ore body were as long as Errington thought it was and as wide and thick as it has shown to be in spots, then a billion tons is not beyond the possibilities. All this is highly conjectural, of course, but no more so than the possibilities the doodlebug has turned up in Minnesota. Hence the notion that the Northwest might yet disclose enough ore to run us several decades longer than we'd thought. Mexican Seizure of American Fishing Vessels EXTENSION OF REMARKS OF HON. PHILIP J. PHILBIN OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. PHILBIN. Mr. Speaker, I am in complete agreement with my distin- guished colleagues, Mr. Lange and Mr. NICHOLSON, and others, who have so ably protested in the House the recent un- warranted seizure of American fishing vessels in Mexican waters. I am not informed officially as to all the facts and circumstances of these seizures, but from the information at hand it seems to me that a grave offense against international law has been com- mitted by Mexican officials. It is stated that the vessels in question were wrongfully apprehended and seized while they were engaged in shrimp fish- ing about 8 miles off the Mexican coast.
A3148 This point is clearly outside the estab- lished international limit and I know of no treaty or convention which prohibits fishing by Americans in these waters. I am forced to conclude, therefore, in the absence of evidence to excuse or justify these acts that they were entirely illegal, wrongful, arbitrary, and high- handed violations of law, of comity be- tween nations, and a serious blow to the mutual respect subsisting between Mexico and this Nation. T eagerly join in the vehement protests against this outrage and urge this Gov- ernment to institute immediate action to submit formal protest to Mexico, de- manding explanation and redress, full compensation in damages, and assurance that these acts will not be repeated. Address of Hon. Herbert Hoover EXTENSION OF REMARKS HON. JAMES C. AUCHINCLOSS OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. AUCHINCLOSS. Mr. Speaker, I am greatly honored in receiving the per- mission of the House to extend my re- marks in the Appendix of the REcorp and include-the recent speech by our only living ex-President, Herbert Hoover. This address was niade by Mr. Hoover before the American Newspaper Pub- lishers Association on April 27, 1950, and was of such significance that President Truman is reported to have telephoned him his approval immediately on its con- clusion. That in itself is most unusual and significant, but the speech is .ven more so. It contains sound reasoning and re’.eals what is in the hearts of men and women everywhere who are lovers of freedom and who yearn for peace. I believe it to be one of the most significant utterances of our times and that it will command the attention of thc whole world in its effort to seek a way out of this cold and profitless era in which there is no peace. The great respect and affection in which Mr. Hoover is held by his fellow countrymen adds immeasurably to the force and potentiality of his words. There is no man living today who is more highly esteemed for his sincere love for his country and his many unselfish contributions to the benefit of mankind. I hope that my colleagues will read and reread this notable speech and thereby gain in their thinking about peace. ApprEss By ForMER PrusmEent HerRsert HOOVER TO THE AMERICAN NEWSPAPER PUBLISHERS’ ASSOCIATION It is a great honor to address the editors and publishers of the Jnited States. You are the most powerful of all influences in our country. My subject on this occasion arises from my suspicion that the world in its tumults has abandoned most acceptance of history as a guidepost. There are plenty of voices about but the vate. experience seems to have become 8 ed. I have had to do with the boiling eco- nomic, social, and political forces during two world wars and their aftermaths. I propose for a few moments to add some of the voices of world experience into the present clamor. I shall explore four samples, one each from the economic, social, political, and interna- tional field. ECONOMIC EXPERIENCE In the economic field there are many shrill voices proclaiming that our American eco- nomic system is outmoded. They say it was born of undesirable parents, such as Ameri- can individualism and a French lady, named laissez-faire. They accuse the ghost of Adam Smith as having had something to do with the matter. They concluded our system is of the jungle or dog-eat-dog variety. It might be observed that the alternative offered us is a drink mixed by three different ghosts. That is, the shade of Karl Marx with his socialism. The shade of Mussolini with his dictated and planned economy. The spook of Lord John Maynard Keynes with his “operation cuttlefish” comprising man- aged currency, peacetime inflation by deficit spending, and perpetual endowment for bureaucrats. And we have contributed an American ideology of give~away programs. It might be called the ghost. However, the handiwork of the ghosts and their auxiliaries furnish you most of your Lage 1. I am not going to repeat the old and valid defenses of the American economic system; I may mention that in recent years we have taken strong drinks from the three “hants” I have mentioned, and from the new gener~ osity, all mixed with varying amounts of pure water from the American system. THE ECONOMIC REVOLUTION Be all that as it may, my purpose here is to call your attention to a less obvious world experience. Sixty years ago our American system was divorced from the laissez-faire lady. We started proceedings in 1887 when we created the Interstate Commerce Commission, there- by initiating the control of natural monop- olies. But far more revolutionary was the Antitrust Act of 1890. Western Europe never has had effective antitrust laws. To the contrary, there grew up in those countries a maze of state-favored private trade restraints, combinations, trusts, and cartels. This form of economic organiza- tion sought profits by fixing prices and by control of production and distribution. Under our revolutionized American system, competition remained the restless pillow of progress. It had to seek profits from im- proved technology and lowered costs of pro~ duction. In time, western Europe, without the full pressure of competition, lost much of the im- pulse to improve methods and equipment. Plants became obsolete; standards of living stagnated. OUR SYSTEM DYNAMIC In contrast, our technology with 100 times as many inventing laboratories and a thou- sand times more trained technicians has steadily improved its tools. Our standards of living increased with cheaper costs and more goods. Our system was dynamic; theirs was static. Finally western Hurope with its obsolescent plants, its inability to compete in world trade except at the expense of labor was desperate. It took to hard drinking of the potions from the shades of Marx, Mussolini, and Keynes—plus the new generosity. Our American system continues to produce despite periodic indulgence in these drinks. It does it despite two world wars, innumer- able interferences with incentives and a Government take of 60 or 70 percent of its savings. It still retains the dynamic power to provide the greatest and ,widest spread of comfort to our people that the world has APPENDIX TO THE CONGRESSIONAL RECORD ever known. That is, if we would join Alco- holics Anonymous and quit mixed drinks. Lest any dangerous thought flash through your minds, I am recalling this experience exclusively to you as publishers and editors. EXPERIENCE IN SOCIOLOGY Now lest someone think all this is eco- nomics without humanism, I offer an expe- rience on the social side. It is punctuated today by the siren voices calling for security from the cradle to the grave. Security from the cradle to about 18 or 20 years of age, and from about 65 to the grave, has always been sacred to the American people. The training of our children, the care of our aged and the unfortunate have been a part of our system since the founding of the Republic. It is part of our civiliza~ tion. The governmental part, however, needs some repairs. But the voice of experience which I wish to recall relates to the idea of security for the middle group—say, from 20 to 65 years of age. We have less than 70,000,000 providers in these groups, and they must provide for 80,000,000 children, aged, sick, nonproductive Government employees and their wives. Itis solely from the energies of this middle group, their inventions, and their productivity that can come the support of the young, the old, and the sick—and the Government em- ployees. SYSTEM CAN BE DESTROYED Unless there is the constant pressure of competition on this group between 20 and 65 plus the beckoning of fairies and rewards to simulate incentives and work, the children and the aged will be the victims. This mid- dle group can find its own security only in a free but tough system of risk and self- reliance. It can be destroyed by taxes and the four mixed drinks. Experience calls sorrowful confirmation of all this. My recollection is that the Lord remarked to Adam something about sweat. Be that as it may, there is convincing evidence from the British experience of try- ing to include the middle group in blessed security. Their incentive to sweat has diminished under that illusion. The needed leadership of the middle group in production and distribution is being destroyed. Other- wise they would not need lean on the new generosity. There are also some lessons of experience to be had from Russia where the grave is close to the cradle. And 165,000,000 people are compelled to work in slave camps under the whip. The voice of experience also calls loudly as to organization of the political field. In 1938, I spent some months on the Continent inquiring how come 15 new democracies after the First World War had failed. The downfall of the representative gov- ernments was due in part to the drinks com- pounded by the three ghosts. But there was another step in their arrival at chaos, which contains a potent experience for America, There had grown up in their legislature a multitude of splinter parties. There were all the way from 5 to 15 of them. In conse- quence, there was no responsible majority. Governments were driven to improvised leg- islative coalitions, which could only agree -upon negative policies and give-away pro- grams. In each coalition small foreign~con- trolled tricky groups played a part. In con- fusion and despair, thelr peoples welcomed the man on horseback. TWO MAJOR PARTIES NEEDED Even though old-time religion, it is worth repeating that the preservation of represent~- ative government requires two major political parties. I am not going to deliver a history of the rifts between major parties in the United States. So you may relax. I might mention that once upon a time, say for about 60 years,
APPENDIX TO THE CONGRESSIONAL RECORD the members of both of our major political parties were, in large majority, liberals in tie nineteenth century sense. They quar- reled mostly over the tariff but not over ideologies. However, since Lenin’s implication that the hermit crab, by seizing the shell of another animal knew his business, the term “liberal” has lost its soul. Its cheerful spirit of less power in government and more freedom of men has passed to the world beyond. Nor am I going to try your after-dinner souls with ideological definitions—not even of statism. That definition has already been made instinc*ivelr by the common tongue of all nau.c 1~ where free speech still has a part in their proceedings. That effective but perhaps unrefined definition is “right wing” and “left wing.” PARTIES REORIENTED The point I am concerned with here is that from the ideological tumults stirred by three shades and their helpers, our major American political parties have been in large degree reoriented into these new compart- ments of right and left. I do not charge the real Communists to the American left wing. They are agents of a foreign envernment, If a mat .+:.s. ..e moon, who knew the essentials of representative government, came as a total stranger to the United States, he would ‘ay some obvious things within the first week or two. He would say to the Republican Party: There is no room for you on the left. You must be the party of the right, or you will split into ineffective factions. And with equal emphasis he would say to the Democrats: Your die is cast. You are the party of the left, or you will likewise split into futile factions. He would say to some members of both parties: You are not in your proper spiritual homes. He would say that in all this ideology tumult, if there cannot be a reasonably co- hesive body of opinion in each major party, you are on a blind road where there is no authority in the ballot box or in govern- ment. He would say that if you want confirma- tion look at 15 European countries where representative government was torn to shreds. IN THE INTERNATIONAL FIELD I need not remind you that our page 1 international issue is Communist Russia, There are seven phases of this experience which I must recall before I come to a pro~ posal of action. The first phase of experience with Russia began under the czars. Since Peter the Great they steadily have expanded their reach of empire over the largest land mass in the world. Their method was that of a burglar going down a hall. If there was no one in the first room, he took everything including the doorknob. If he found some- one in the second room who protested, he weighed the strength of the protestor and might leave part of the furniture. If he found an armed man in the third room, he closed the door and waited. Lenin and Stalin added a new apparatus for the robber. They now make the man in the second room a party member and rob him later and by degrees. They now put the armed man in the third room asleep with a nonaggression pact or a promise of peace. Thus, he neglects his weapons. In any event they steal his secrets. The second phase of this experience with ‘Russia was a period of 16 years during which four Presidents and seven Secretaries of State opposed our having any relations with this malignant Government. Their attitude was that when our neighbors are living a life of spiritual and other disrepute we do not at- tack them. But we can hold up standards in XCVI—App.——199 the world a little better if we do not invite them into our homes by so-called recogni- tion. LEFT-WINGERS HAD WAY The third historical phase arrived when our left-wingers had their way in our rela- tions with Communist Russia. They pro- duced the recognition of the Soviet in 1933. They produced the alliance with Russia in 1941. They produced the appeasement of Russia in western Europe until its reversal by President Truman and Secretary Byrnes in 1945. I will not join in the explanations about China. Up to now there is agreement on only one point. We lost the game— 400,000,CO0 to nothing. Many of our *7i+-—inccr- were not con- sciously doing it. ts. TInt: were just trigger-happy to anything new in ideological life. Lest anyone think I am a recent convert in these, I may cite that just 9 years and 63 days ago I warned the American people that collaboration with Stalin to bring freedom to mankind was a gargantuan jest. I used the wrong adjective. I should have said tragic. Fora result, instead of the expansion of liberty, we witness a dozen nations and 600,000,000 human beings enslaved. The fourth phase of this experience was that Soviet Russia has in the last 12 years violated more than 35 solemnly signed agree- ments. NOW A PROPAGANDA FORUM The fifth phase of this experience has been with the Communists in the United Nations. That Charter for which we hoped so much contains lengthy pledges to the independ- ence of nations, to human liberty, and to nonagegression. About a dozen provisions of that Charter have been violated either in spirit or in letter by Soviet Russia. The Kremlin has reduced the United Nations to @ propaganda forum for the smearing of free peoples. It has been defeated as & preservu- tive of peace and good will. The sixth phase of this experience is that we now find ourselves in an expensive and dangerous cold war. We conduct the battle with subsidies to beguile peoples to rectitude from internal communism. A year ago we made the Atlantic military pact. The ex- pressed hope was that although there was no commitment to go to war these nations would build up their own arms to adequately defend their own rooms. In persistence to an old habit, we are taking up the check. In the meantime we learn that our first defense—-the atomic bomb—has been stolen from us. The final phase of our experience with Russia is the belated realization that this is not one world but two worlds. The one world idea seems to be lost in the secret files. One world is militaristic, imperialistic, atheistic, and without compassion. The other world still holds to belief in God, free nations, human dignity, and peace. SHOULD TAKE COLD LOOK Now to come to the point of all this. The American people ought to take a cold and objective look at this.experience before we go any further. ‘The look should be directed to the fact that more and more the burdens of defend-~ ‘ing free men and nations are being thrust upon the American people, who are only one~ sixth the population of the globe. We are becoming more and more isolated as the sole contender in this cold war. We are steadily -losing ground because the non-Communist states are being picked off one by one or are compromising with the Communists. Our countrymen are in a fog as to what, where, and when all this leads to. What the world needs today is a definite concrete mobilization of the nations who be« lieve in God against this tide of Red agnos= ticism. A3149 It needs a moral mobilization against the hideous ideas of the police state and human slavery. The world needs mobilization against this creeping Red imperialism. The United States needs to know who are with us in the cold war against these practices, and who we can depend on. CALLS FOR REORGANIZED UN Therefore, I have a proposal to make. I suggest that the United Nations should be reorganized without the Communist na- tions in it. If that is impractical, then a definite new united front should be organ- ized of those peoples who disavow commu- nism, who stand for morals and religion, and who love freedom. This is ae not a proposed exten- sion of acrid ‘e”" or any color of it. It 1s @ proposal pased ‘solely upon moral, spir- itual, and defense foundations. It is a pro- posal to redeem the concept of the United Nations to the high purpose for which it was created. It is a proposal for moral and spirit- ual cooperatio.. of God-fearing free nations. If the free nations join together, they have many potent moral, spiritual, and even eco- nomic weapons at their disposal. They would unlikely ever need some weapons. Such a phalanx of free nations cou'’d come far nearer to making a workable relation with the other half of the two worlds than the United States can ever do alone. COULD KEEP AGENTS OUT By collective action we could much more effectively keep their conspiring agents and bribes out of all our borders and out of our laboratories. It may be the non-Communist world is not willing to take such a Vital stand. At least it would clarify what we have to do. The test I propose is the logical and prac- tical method of total diplomacy. It would make diplomacy dynamic and lessen the dangers of the American people. All this may give pain to some people. But by their cries ye shall know them. My friends, I am not disheartened by all this recall of disturbing experience. We must retain our faith in western civilization. In support of that faith we are perhaps a slow but a resolute and intelligent people. We have the greatest organ of education known to man—a free press. You can dissolve nruch of our confusion and frustrations. And ‘n rejecting an atheistic other world, I am confident that the Almighty is with us. The Late Dr. Charles R. Drew EXTENSION OF REMARKS oF HON. CHRISTIAN A. HERTER OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. HERTER. Mr. Speaker, the trag- ic death in an automobile accident on Apr'‘l 1 cut short the career of one of this country’s most distinguished citizens, Dr. Charles R. Drew, chief surgeon at Freed- men’s Hospital and professor of surgery at Howard University. The contribu- tions which he made in the fields of med- icine and science were many, and he achieved international reknown for the pioneering work he did in connection with the development, of blood »plasma— work which incidentally won for him the directorship of the first plasma division in 1941 and also the honor of being the first director of the American Red Cross blood bank,
A3150 A Negro himself, Dr. Drew worked un- ceasingly to train other Negro surgeons, and the success of his efforts is attested to by tke fact that more than half of the Negro surgeons who have been certified by the American Board of Surgery studied under Dr. Drew. An Amherst College graduate in 1926, he received his medical degree from Mc- Gill University in Montreal, Canada, in 1933, and served as resident doctor at the Montreal General Hospital until he came to Toward University as an in- structor in pathology and an assistant in surgery in 1935. In 1938, he was awarded a Rockefeller fellowship in surgery at Columbia, University, where he received his doctor of science degree in 1940. He was the recipient of the Spingarn medal in 1943—an award for distinguished service given annually by the National Association for Advancement of Colored People. Dr, Drew was a member of the board of directors of the district chapters of the National Foundations of Poliomy- elitis and of the American Cancer So- ciety. He was a member of the board of trustees cf the National Society for Crippled Children, and was chief of the surgical section of the National Medical Association. It is always deeply distressing when- ever a career of selfless service is brought to an abrupt and accidental end. This is particularly true in the case of Dr. Drew, whose, humble and competent approach to vzhatever problems he was faced with made him respected and admired by all who knew him, Justice for Poland EXTENSION OF REMARKS oF HON. JOHN F. KENNEDY OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. KENNEDY. Mr. Speaker, un- der unanimous consent I include in the Appendix of the RrcorD a speech by Judge Blair F. Gunther, supreme head of the Polish National Alliance of North America, on justice for Poland, together with an introduction by Attorney Mar- towski: INTRODUCTION BY ATTORNEY MarTowsxI The most alarming tension confronting the American people is caused by the spread of communism throughout the world. Prob- ably not many of us do realize that the ap- peasement policy of our diplomats at Yalta, Tehran, and Potsdam, has helped Stalin to dominate two-thirds of Europe and most of China and become a threat to our security and world peace. Whether we yielded to Stalin by sheer ignorance of Russian history, confused thinking, or unfamiliarity of Com- munist methods; or whether our own Communist sympathizers, skillfully planted in the important governmental departments, have misguided our actions we are paying dearly for the colossal errors committed at the highest levels of our officialdom. Grad- ually we have recognized our blunders and in order to correct them, at least in part, we are now spending billions of dollars for the Marshall plan, Atlantic Pact, and the rearma- ment of western democracies. We are hbe- coming more aware that communism is based on atheistic materialism with its total- itarian regime enslaving common people. God is set aside and with Him the basis of morality. The dignity of human beings, the inalienable rights to life, liberty, and pursuit of happiness, are replaced under communism by the police state abrogating all rights and privileges. This brutal ideology is infiltrat- ing even the United States. Within our gates the fifth column is plotting the destruction of our Government. This fifth column is becoming more bold, more aggressive, and more effective than ever before. So that to- day even the safety of America is at stake in the face of a cruel, stealthy, ruthless, and clever Asiatic enemy with his agents oper- ating in our midst. But more on the subject of communism will be given by our distin- guished speaker, Judge Blair F. Gunther. He was born in Hasting, Pa., son of a coal miner. He graduated from the Kanty Pre- paratory School and received his LL. B. de- gree from Duquesne University in 1927. From 1935 to 1988 Mr. Gunther was deputy attorney general. He was appointed to the bench in 1942 and was elected in 1943 despite a Democratic landslide. Judge Gunther is supreme head of the Polish National Alliance of North America, a fraternal organization having over 300,000 members in the United States. He is chairman of the board of trus- tees of the Alliance College and is the na- tional chairman of the American Resettle- ment Committee for Displaced Persons. For the fifth consecutive time, he was elected chairman of the Polish-American Congress of Western Pennsylvania. It is with pleasure that I present now the recorded address of Judge Blair F, Gunther of the Allegheny County Court. Judge Gunther. JUSTICE FOR POLAND (By Judge Blair Gunther) I am very happy to speak to you under the auspices of the Polish-American Con- gress, of western Massachusetts, and espe- cially upon the invitation of my dear friend, Dr. Karol Smolczynski, who has done so much for our country and in the interests of Poland. Iam very happy to speak on a subject that js of interest to many of us—the dernorali- zation of communism and its designs on the world, Let us today jn this season of Lent start appeasing God instead of appeasing Joe Stalin, if we are to avert another world war. In the words of one of our distinguished clergymen in western Pennsylvania, who is also a spokesman for the Polish Congress, “The demoralization is gaining ground espe- cially among the young people of our coun~ try.” The Communists today try to show how it satisfies for a while the seeking and longings of man which we know that only God can satisfy. They try to point out how it offers a temporary substitute for the reli- gious cravings of men. Today I’d like to note two things in par- ticular in which communism imitates Chris- tianity: First, its demand for blind faith; second, its perversion of the Golden Rule. First, it denies God in all things because there are some things which they cannot see, taste, or touch, and they cannot verify by sense experience. In short, the Commu- nists want to throw out all faith which, as we know, is defined as a virtue by which we believe in God and the things which He has revealed, for it is He who has redeemed us, and He cannot be deceived. And yet com- munism itself demands blind faith. In fact, today we are living in an age of unprece- dented faith. The materialists—the best known: of whom are Marx and Lenin—hold out the promise of heaven on earth. Of course, they also point out that this heaven on earth will come ¢fter a somewhat bloody revolution, APPENDIX TO THE CONGRESSIONAL RECORD It has its cwn stake in martyrism. Saints are canonized in Moscow faster than in Rome because in Rome they are more cau-~ tious in bestowing sainthood. There are many sects and denominations that believe in communism. Its head is Joseph Stalin. Since this religion is so great in power and persuasion, it declares that this head is the supreme pontiff and he is in-~ fallible. Now you see by comparison the Communist laughs at Catholics who accept the Pope as Christ’s successor, who speaks infallibly on faith and morals. Yet, they declare the same about Joe Stalin. If the Catholic denies the authority of the Holy Father, he is a heretic. If the Russian de-~ nies Joseph Stalin’s authority and infalli- bility, he’s a dead duck. The Communists mock the Christians for accepting the in~ earnation and ridicule our belief in the mir- acles of Christ at Lourdes, but the disciples of communism believe many more mystical propositions and miracles. For instance, it believes that man, or as he likes to call him, the common man, lives by bread alone and that only when his stomach is full is he supremely happy. He passionately believes that all will be good and peaceful when each man will have two cars in every garage, two chickens in every pot, and two pairs of legs on every chicken. Men are still unhappy and still behave terribly. Now, don’t ask him why it is that men who have all these things are unhappy. He will answe. this: No man will be good unless all men can have everything which, judging by human na- ture, can never come about. The same thing may be wrong in Moscow and right in America. Don’t ask a Com-~ munist why it would be suicide for a Rus~ sian to strike at Moscow, but it is right for an American to strike against bad work- ing conditions, or why freedom to disagree with the press is a human right for a Com- munist here, but a mortal sin and a crime in Russia. Or why it is superstitious to make the sign of the cross in memory of Christ who was crucified, but all right for a Communist to make the sign of the clenched fist in front of Lenin’s tomb. The truth about the religion of communism is that it is, of all the heresies, the silliest and most irrational. It demands more acts of faith. The Communists expect more mira- cles from Stalin than the Christians expect from their own God. They say that commu- nism is a Christian heresy. It is not, strictly speaking, since it denies all Chris- tianity completely, while most of the sects that have sprung up in the shadows of the cross in western civilization during the past thousand years are heresies of the Church founded on some article of belief or dogma which they feel have been neglected. Now, in our western world, what has needed em- phasis for the past 200 years was certainly the Golden Rule. The second part of the great commandment “Love thy neighbor” and this neglect of the brotherhood of man was noted by Karl Marx and taking this com- mandment, disregarding all else, he made a religion. Of course, he made one slight change which resulted in the complete de~ struction of that great commandment. The Christian commandment of love of neighbor ‘was based on the commandment ‘Love thy God,” although Communists thought you could have the brotherhood of man without the love of God. Man did not create God, but God created man. But Karl Marx did succeed and will succeed as long as Chris- tians exploit their neighbors and trample on human rights. Even here in America, theoretically a Christian nation, there still is much despair, degradation, oppression, crime, and misery. We have forgotten Christ’s commandment to love one another. Against our terrible social crimes we have a right to protest. But to destroy our Gov~ ernment, to attempt to change human nature by murder and robbery, this would bring
APPENDIX TO THE CONGRESSIONAL RECORD about a revolution. This is not the Ameri- can way. This is the Communist way. Here in America the Communists put us American Christians to shame. We don’t al~ ways do as we believe, but the Communists, in this sense, believe in brutality involving the liquidation of human beings. Now, we are not advocating that doctrine. What we are trying to say is this: Let us act the way we believe, let us practice what we preach, bring real equality according to the indivi- dual merits and practices. Let us act as we say that there is a just God who will reward the good and punish the evil. The Communists say, “All hail to the new world religion, all hail to its messiah, Lenin, all hail to its prophets, Marx and Engels, all hail to the supreme pontiff, Stalin.” Com- munism does not promise the kingdom of God nor life hereafter, but it tries to hold out a hope of paradise on earth. Instead of a Bible, men are asked to accept the hammer and sickle. Men who have rejected God get on their knees and, turning their eyes to the east, mock God in their prayer. “Our father who art in the Kremlin, Stalin is thy name. May your will be done in Budapest, Prague, and Washington as it is in the Kremlin.” Investments in Human Resources EXTENSION OF REMARKS OF HON. LOUIS C. RABAUT OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, May 1, 1950 Mr. RABAUT. Mr. Speaker, under leave to extend my remarks, I include in the Recorp a speech given by John L. Thurston, Assistant Administrator for program of the Federal Security Agency, before the Association of Credit Unions of the State of Michigan, April 22, 1950, entitled “Investments in Human Re- sources.” ‘This speech sets forth in a clear and enlightened manner the merit of our basic investments in the preserva- tion and development of human happi- ness and effectiveness: INVESTMENTS IN Human RESOURCES (By John L. Thurston, Assistant Administra- tor for program, Federal Security Agency) I am pleased to be here tonight, for three reasons, First of all, I am glad to address the Michigan Credit Unions as a member of the Federal Security Agency partnership. The Bureau of Federal Credit Unions, now about to complete its second year in the Federal Security Agency, is the newest addi- tion to the FSA family—and we are very enthusiastic about our new member. As I was leaving Washington, Claude Or- chard, Director of the Bureau, asked me to convey his personal regards to the Michigan Credit Unions and to tell you how proud we are at headquarters over the progress which Federal Credit Unions have been making here in Michigan. I understand that there are 320 operating credit unions in the State of Michigan with assets of more than $12,750,000, and that more than 180,000 residents of this State are members of credit unions. This represents @ marvelous growth in the last few years, I know these people are adding to the finan- cial security of their families through par-~ ticipation in the voluntary, self-help activ- ities of their credit unions. Promotion of thrift is a constructive influence in our econ- omy, and protection from excessive interest rates increases the purchasing power of work- amv newts Tam glad that the Bureau of ofr.’ & o> Unions is a part of the Fed- eral Security Agency. Second, I came here to Detroit because I am always pleased to have an excuse to come home again. I was born in this State—at Grand Haven—and spent most of my youth in Benton Harbor, which is my legal resi- dence. There is something satisfying about coming back to your home State, and I am always glad to have the chance to do so. In the third place—I am glad to be here because I think I have something to say. Something which is not particularly new or startling but which is of fundamental im- portance, and which is not always widely recognized. And I have a feeling that what I intend to say tonight will be understood and appreciated by this particular audience. Credit unions combine two great virtues: the virtue of self-help and the virtue of mu- tual aid. Members of credit units know that the Lord helps those who help them- selves. They also know that the Lord helps those who help each other. Added to these virtues of self-help and mutual aid is the factor of foresight. You prepare against the rainy day and afford protection for him on whom the storm descends without warning, Perhaps as clearly as any other form of in- vestment, credit union funds are directly in+ vested in human resources and human wel- fare. I therefore do not apologize tonight for speaking to you in a rather serious vein on the subject, “Investments in Human Re- sources.” Ir . At the outset, I should like to state two extreme points of view, for the purpose of rejecting both. No one present tonight would make the error of putting me or him- self in either of these categories I am about to describe; but I have learned from ex- perience that it is sometimes useful to say clearly what one does not mean, in order that one is not misquoted or misinterpreted. Not so very long ago, it used to be gener- ally accepted that public expenditures were nonproductive. Farmers and manufactur- ers and laborers produced the food, clothing, and shelter for mankind. Professional peo- ple produced the services. These were said to be productive. Money put into farms, factories, transportation and communica- tion, office buildings and the like—that was productive investment. But money put in- to paying for teachers, judges, policemen, legislators, and p-isons—that was another story. Public expenditures didn’t produce anything, it was argued. Public expendi- tures were merely that much taken out of what the economy produced. Everybody was poorer by the measure of every dime that went into the public coffers, That was a fairly common assumption 50 years ago— and there may be a few alive today who hold that view. According to this philosophy, the best pub- lic expenditure was the smallest that could possibly be made. Prisons were good enough if they prevented the escape of criminals, Mental hospitals were to keep patients out of harm’s way, and from harming others—at the least possible money cost. School teach- ers should be paid the minimum going rate, with no frills and folderol added; no foolish- ness like manual training and domestic science and art and music and citizenship. This negative philosophy even extended to industry. What was the point in putting safety guards on machinery, merely to pre- vent accidents? The point was to get goods produced in largest quantities with mini~ mum cost. To set safety standards by legis- lation, and then to establish a corps of gove ernment inspectors to swarm through the factories to enforce those laws, was held to be one more example of nonproductive gov- ernment expenditure. A311 Now experience has long since demonstra- ted the fallacy of the negative notion of gov- ernment ernenditure—to most of us, at least. In .ne feild of industrial safety, for example, industry itself has learned the les- son so well that it pretsy generally tends to keep well ahead of the minimum standards established by legislation. Recently the National Association of Manufacturers asked about 2,000 plant operatcrs what their sav- ings were, due to the c-*ct"'-rir~ cf medical and safety departme:.”.. rte wl, all of them reported that these projects were pay- ing off handsomely. Here are the average reductions they reported: Percent In occupational disease_.-...--.-.-.~-- 62 8 In absenteeism____-.----~.-.--------- 23.7 In compensation costs..-....- a 28.8 In labor turn-over__-_--..-..-. acueenn 27.3 As this lesson has become clearer with the passing of the years, resistance to wise Gov- ernment expenditure in programs of indus- trial health and safety has disappeared. In- stead, we find today that there is the closest working cooperation between Government and the general public, including manage- ment and labor, in pushing programs of health and safety in industry. All have learned that it pays of handsomely. Much of the same thing is true in other areas. Enlightened people no longer think of prisons just as places to lock up criminals at minimum expense. Though we still have a long way to go, we really believe that they should be what the newer name says: “insti- tutions of correction.” And our thinking today goes even beyond correction—our cur- rent concern with juvenile delinquency puts the accent on prevention. Experience has proved that the supervised playground turns out better citizens than the alley gang. Education is one of the crowning examples of the passing of the negative notion of pub- lie expenditure. A century ago, as the idea of universal free compulsory schooling was battling to win its way, there were those who condemned the whole notion as socialistic and dangerous. “What,” they cried, “would you tax one man to pay for the education of another man’s child?” But a century of the common school in America has demonstrated its value so conclusively that no responsible voice attacks the basic idea that it is wise to put public moneys into public schools for all the children. It pays off, in better citi- zens, better producers, finer people. It pays off, too, in dollars and cents, as any com- parison of the man-hour productive efficiency of an educated labor force with an unedu- cated labor force shows. These examples only begin to suggest the reason why most of us have cdst aside the ancient error that Government expenditures are parasitic and unnecessary. I shall say more, a little later, about the way in which public investments in human resources pay off, All I have said up to this point is that we are no longer confronted with the errone- ous assumption that public expenditures are unproductive. We now know that they are productive. Just how productive they may be is a matter to which I shall soon turn. But before doing that, I must disassociate myself frorr a second error which occasionally appears in private and public discussions. Once in a while one meets some starry-eyed person who sees the truth that public ex- penditures pay off, and who goes on from there to indulge in wild and speculative schemes of dangerous proportions. They are like the housewife who listened to a fast- talking salesman’s claim that the gadget he was peddling would cut her housework in half. “Oh,” she said brightly, “then I'll take two of them and cut out all my housework.” Just because public investment in human resources pays off, it does not follow that a limitless multiplication of that expenditure will be desirable for the individual, or will be in the national interest.
A3152 We must disavow this extreme just as clearly as we deny the assumption that pub- hie expenditure for human welfare 1s un- precuctive. We shall do well to recognize taat public investment, like any other in- vestment, must be wisely made and guided by the rules of reason. This is a hard-boiled, prolictic ge cecech +- Sha problem of human ‘lr oa. .7 ox. 4! the finer ideals of os Pa ai.is its feet on the ground as it moves forward. With that perspective, let’s turn to the question of what public investments in hu- man resources actually cost—and who pays for them. Do we put more into them than we get out of them? Do public investments represent a total waste, or a partial waste, or anet gain? What is the balance sheet? In general, I think we can say that much depends on what sort of public investment we are talking about, and the degree of ade- quacy of that investment in the light of the need it tries to meet. If a man’s roof is leaking, it will pay him to invest in more pots and pans to put in the attic to catch the drip. That saves the plaster and paint in the floors below. Even the minimum sort of public expenditure in picking up the pieces of wreckage left by the processes of history has a monetary justifica- tion of a sort. Property values are higher and people rest more securely when everyone feels that the police system is doing an ade- quate job in restraining crimes of violence. The general economy has greater stability and continuing purchasing power when there is adequate unemployment insurance and when social security for the aged main- tains the purchasing power of the older seg- ment of the population. A sick man who gets well quickly is a better producer than one whose absenteeism is high because of recurrent i1llnes-. But any wise householder knows that it is better to fix the roof than to run around the attic with pots and pans every time a shower comes. Whether he will put on a slate roof or use shakes or shingles or asphalt and gravel will depend on a lot of factors of Judgment and pocketbook. But he knows that a tight roof is better than a leaky one, that a tight roof pays off. From year to year he cannot point to exact financial returns on a good roof; but he can know that he has not had to plaster the back bedroom after every spring rain. So it is with these investments in human resources. Certainly we shall never see the time when there will be no leaks in the roof, when we shall never need to spend some- thing to help the afflicted and the unfortu~ nate. But we also know that the wisest ex-~ penditure is that which reduces to the mini- mum the number of pots and pans we have to keep in the attic of the Nation, a policy which keeps the roof as tight as possible. Take it in the health field, for example. Every year the Nation loses a sizable sum because of short-term illness, incapacitation, and partial disability. Estimates for 1947 put the figure as high as $27,000,000,000 a year which the productive economy loses from these three causes alone. I pass over the loss of production which comes because of the premature deaths of workers, esti- mated for the same year at about 27,000,000 life-years annually, a loss of around $11,000,- 000,000 in production and wages each year through premature death. That is over and beyond the direct losses from underproduc- tion by the living. Now, put over against this annual loss the figure of what we spend for medical and health services. We are losing more than twenty-seven billions, about 10 percent of the annual production, because of poor health; but in 1947 we spent only about eight and one-half billions, about 8 percent of the national product, for medical and health services. That included all funds, private and public, spent on medical and health services. Private individuals and organiza~ v tions spent by far the largest share of this— six and one-half billions. All governments— Federal, State, and local—together spent less than two billions for medical care and pre- vention, including all rozearch and includ- ing expenditures for veterans’ health pro- grams That’s an over-all view. Now look at a few specifics. Cancer The report of the Hoover Commission's task force on public welfare calculates what might happen if an adequate program of treatment of cancer were introduced. With~ out waiting for any further progress in re-~ search, merely using what we now know about cancer, the task force report concludes that more than 95,000 premature deaths could be prevented every year if the services and facilities in the best cancer-control cen- ters were available throughout the country. The Hoover report cites a study for one State which shows that about half of the cancer patients are under 60 years of age. And it concludes “a very considerable number of productive years may he saved by the wide- spread application of known cancer-control methods. As research improves the results of treatment, the outlook will undoubtedly improve further.” Tuberculosis Today we know how to control tubercu- losis But we are not doingit. Tuberculosis takes a wage earner away from his family and away from his job for years. In addi- tion to his loss in earnings, it costs a lot for medical care and family maintenance (often borne by the community). And we still have a half million cases of tuberculosis in the country. The expenditure today of a little more effort and money would save literally millions of dollars in the future. Malaria Everyone knows the dramatic story of the conquest of malaria and the building of the Panama Canal. Nearly the same thing is now true in this country. Only a few years ago, malaria was a direct cause of poverty in the United States. Malaria time is farm- ing time. This disease puts people to bed when they need to be out in the fields, caus. ing suffering in families, in whole commun- ities, in whole States. People are kept poor when they cannot grow the crops. And peo- ple who have the malaria parasite in their blood are too tired to care if their crops are bad or their houses are run down. Malaria makes them poor in pocketbook and poor in spirit. Before the war it was cstimated that malaria cost the Nation approximately one- half billion dollars annually in lost produc. tion in the 17 Southern States alone. But we are no longer merely putting rusty kettles and pails under that leak. The last knock- out campaign, for which Congress has ap- propriated an average of about nine million dollars a year, is proving even more success- ful than expected. The complete elimina- tion of malaria is in sight. The successful control of malaria has undoubtedly con- tributed greatly to the economic and cul- tural progress of the South which we have witnessed in recent years. We might go on through a long list of dis- eases—typhoid fever, tetanus, smallpox, meningitis, plague, yellow fever, the venereal diseases, and cholera. The story, based on experience with the armed forces, is sub-= stantially a repetition of what we have just been saying about these other great scourges of mankind. In a study of the white males from 20 to 65, the Metropolitan Life Insur- ance Co. estimates that nearly 4 years could be added to working life expectancy at age 20 and that, for this entire group, the elimina- tion of premature death through the control of the 15 major causes of deaths would add 178,500,000 working years to the labor force. Do we need any more argument to convince us that the Nation would be healthier, stronger, and more prosperous if we stopped APPENDIX TO THE CONGRESSIONAL RECORD thinking in terms of catching the drip under the leaks and began to act in terms of more effective protection? Another field in which investment in human resources pays off, and one in which the actual dollars and cents pay-off can be demonstrated with startling clarity, is the work of the Office of Vocational Rehabilita- tion, in the Federal Security Agency. Here are some facts: If we do not rehabilitate a dependent per- son, 1t costs us, in public funds, anywhere between $500 and $1,400 each year to main- tain that raan and his family at a minimum level of subsistence. That cost goes right on, year after year. But instead of that, we can spend an average of $445 a year to rehabilitate a man and pay it only once. That man then removes himself and his family from the public-assistance lists—be- comes a wage earner and family supporter; and within 5 years he has paid back through income tax alone, the total cost of his re- habilitation. Over the average life span of rehabilitated persons, every one of them pays back, on the average, directly to the Federal Government, in income taxes, ten times as much as it costs to rehabilitate him. In 1949 alone, the wage product.on of pe1sons rehabilitated increased from $17,000,000 a year before rehabilitation to $93,000,000 after rehabilitation. These dramatic demonstrations of the net returns that come through medical and health services and rehabilitat‘on are matched by no less dramatic facts from many other fields of public investment. Just as a vast “ystem of feeder roads, built mainly at public expelise, 1s essential to the productive capacity of the Nation’s farms; jus as the industrial and agricultural potential of the Tennessee Valley has blossomed with the coming of electrical power and flood control, accompanied by wise programs of soil con- servation and education; just as our great system of free elementary and secondary schools has given us a literate and intelligent people whose productive capacity has gone into the building of a nation strong and prosperous beyond anything that previous history or contemporary experience in other countries could dream—just so, the time has come to give clear end ex nliai+ reecgnition to the public and 3. a.e uve .. derived from investments in 1} i= veo hte of all kinds. We have long recognized that it is wise policy to replenish and renew our natural resources. Experience with the dust bowl of the 1930’s in our great Southwest, with the denuding of our mountains by the timber- man’s axe, of the polluting of our slreams and the decimation of wildlife—these ex- periences have taught us that mankind pros- pers only as natural resources are renewed at least as rapidly as they are consumed. In- vestments in human resources also pay off. But let me be clear that the case for such investment by no means rests solely on dol- Jars and cents. Quite the contrary. The salvaging of human dignity which comes through every good deed of human sympathy is beyond money value. A genuine concern for one’s fellows is firmly rooted in American tradition, and its fruits are of incalculable value. The quality of American life is better because of the spiritual heritage, which Stresses this concern. And the quality cf every community is better because hosjutals and schools and playgrounds and libraries have been built and staffed and supported. Investments in human resources—in the dig- nity and worth of every human being—is beyond price or profit. The fact that they do pay off is not a justification. It is an additional dividend. At the same time, these facts as to the eco- nomic value of this dividend provide an im- portant perspective on the question of who pays for these investments. Some people might put it this way—that Government investments in human resources