1950 which accounting and related financial re- porting fulfill the purposes specified, finan cial transactions have been consummated in accordance with laws, regulations or other legal requirements, and adequate internal financial control over operations is exercised, and afford an effective basis for the settle- ment of accounts of accountable officers. (e) Empnasis be placed on effecting or- derly improvements resulting in simplified and more effective accounting, financial re- porting, budgeting, and auditing require- ments and procedures and on the elimination of those which involve duplication or which do not serve a purpose commensurate with the costs involved. (f) The Comptroller General of the United States, the Secretary of the Treasury, and the Director of the Bureau of the Budget con- duct a continuous program for the improve- ment of accounting and financial reporting in the Government. Accounting and reporting provisions Src. 112. (a) The Comptroller General of United States, after consulting the Secretary of the Treasury and the Director of the Bureau of the Budget concerning their ac- counting, financial reporting, and budgetary needs, and considering the needs of the other executive agencies, shall prescribe the prin- ciples, standards, and related requirements for accounting to be observed by each execu- tive agency, including requirements for suit- able integration between the accounting processes of each executive agency and the accounting of the Treasury Department. Re- quirements prescribed by the Comptroller General shall be designed to permit the ex- ecutive agencies to carry out their responsi- bilities under section 113 of this part, while providing a basis for integrated accounting for the Government, full disclosure of the results of the financial operations of each executive agency and the Government as a whole, and financial information and control necessary to enable the Congress and the President to discharge their respective re- sponsibilities. The Comptroller General shall continue to exercise the authority vested in him by section 205 (b) of the Federal Prop- erty and Administrative Services Act of 1949 (63 Stat. 389) and, to the extent he decms necessary, the authority vested in him by section 309 of the Budget and Accounting Act, 1921 (42 Stat. 25). Any such exercise of authority shall be consistent with the provisons of this section. (b) The General Accounting Office shall cooperate with the executive agencies in the dev2lopment of their accounting systems, in- cluding the Treasury Department, in tho development and establishment of the system of cantral accounting and reporting required by section 114 of this part. Such accounting systems shall be approved by the Comptroller General when deemed by him to be adequate and in conformity with the principles, stand- ards, and related requirements prescribed by him, (c) The General Accounting Office shall from time to time review the accounting systems of the executive agencies. The re- sults of such reviews shall be available to the heads of the executive agencies concerned, to the Secretary of the Treasury, and to the Director of the Bureau of the Budget, and the Comptroller General shall make such re- ports thereon to the Congress as he deems proper. Sxc, 113. (a) The head of each executive agency shall establish and maintain systems of accounting and internal control designed to provide— (1) full disclosure of the financial results of the agency's activities; (2) adequate financial information needed fok the agency’s management purposes; (3) effective control over and account- ability for all funds, property, and other CONGRESSIONAL RECORD—HOUSE assets for which the agency is responsible, including appropriate internal audit; (4) reliable accounting results to serve as the basis for preparation and support of the agency's budget requests, for controlling the execution of its budget, and for provid- ing financial information required by the Bureau of the Budget under section 213 of the Budget and Accounting Act, 1921 (43 Btat. 23); (5) suitable integration of the accounting of the agency with the accounting of the Treasury Department in connection with the central accounting and reporting responsi- bilities imposed on the Secretary of the Treasury by section 114 of this part. (b) The accounting systems of executive agencies shall conform to the principles, standards, and related requirements pre- scribed by the Comptroller General pursuant to section 112 (a) of this part. Src. 114. (a) The Secretary of the Treas- ury shall prepare such reports for the in- formation of the President, the Congress, and the public as will present the results of the financial operations of the Government: Provided, That there shall be included such financial data as the Director of the Bureau of the Budget may require in connection with the preparation of the budget or for other purposes of the Bureau. Each execu- tive agency shall furnish the Secretary of the Treasury such reports and information relating to its firancial condition and oper- ations as the Secretary, by rules and regu- lations, may require for the effective per- formance of his responsibilities under this section. (b) The Secretary of the Treasury is au- thorized to establish the facilities necessary to produce the financial reports required by subsection (a) of this section. The Secre- tary is further authorized to reorganize the accounting functions and install, revise, or eliminate accounting procedures and finan- cial reports of the Treasury Dapartment in order to develop effective and coordinated systems of accounting and financial report- ing in the several bureaus and offices of the Departmeut with such concentration of ac- counting and reporting as is necessary to accomplish integration of accgunting re- sults for the activities of the Department and provide the operating center for the con- sOlidation of acounttng results of other executive agencies with those of the De- partment. The authority vested in and the duties imposed upon the Department by sections 10, 15, and 22 of the act entitled “An act making apprcpriations for the leg- islative, executive, and judicial branches of the Government for the fiscal year end- ing June 30, 1885, and for other purposes”, approved July 31, 1894 (28 Stat. 1€2, 208-210) ° may be exercised and performed by the Sec- retary of the Treasury as a part of his broader authority and duties under this sec- tion and in such a manner as to provide a unified system of central accounting and reporting on the most efficient and useful basis. (c) The system of central accounting and reporting provided for herein shall be con- sistent with the principles, standards, and related requirements prescribed by the Comp- troller General pursuant to section 112 of this part. Sec. 115. (a) When the Secretary of the Treasury and the Comptroller General de- termine that existing procedures can b: mod- ifled in the interest of simplification, im- provement, or economy, with sufficient safe- guards over the control and accounting for the public funds, they may issue joint regu- lations providing for the waiving, in whole or in part, of the requirements of existing lew that— (1) warrants be issued and countersigned in connection with the receipt, retention, 11157 and disbursement of public moneys and trust funds; and ' (2) funds be requisitioned, and advanced to accountable officers under each separate appropriation head or otherwise. (b) Such regulations may further provide for the payment of vouchers by authorized disbursing officers by means of checks issued against the general account of the Treasurer of the United States: Provided, That in such case the regulations shall provide for appro- priate action in the event of delinquency by disbursing officers in the rendition of their accounts or for other reasons arising out of the condition of the officers’ accounts, in- cluding under necessary circumstances, the suspension or withdrawal of authority to dis- burse. Src. 116. The Comptroller General ts aue thorized to discontinue the maintenance in the General Accounting Office of appropria- tion, expenditure, limitation, receipt, and personal ledger accounts when in his opin- jon the accounting systems and internal cone trol of the executive, legislative, and judicial agencies are sufficient to enable him to per- form properly the functions to which such accounts relate. Auditing provisions Src. 117. (a) Except as otherwise speci- fically provided by law, the financial trans- actions of each executive, legislative, and Jue dictal agency, including but not Mmited to the accounts of accountable officers, shall be audited by the General Accounting Office in accordance with such principles and pro- cedures and under such rules and regula tions as may be prescribed by the Comp- troller General of the United States. In the determination of auditing procedures to be followed and the extent of examination of vouchers and other documents, the Comp- troller General shall give due regard to gen- erally accepted principles of auditing, in- cluding consideration of the effectiveness of accounting organizations and systems, in- ternal audit and control, and related admin- istrative practices of the respective agencies. (b) Whenever the Comptroller General determines that the audit shall be conducted at the place or places where the accounts and other records of an executive agency are normally kept, he may require any exe- cutive agency to retain in whole or in part accounts of accountable officers, contracts, vouchers, and other documents, which are re- quired under existing law to be submitted to the General Accounting Office, under such conditions and for such period not exceed- ing 10 years as he may specify, unless a longer period is agreed upon with the execu- tive agency: Provided, That under agree- ments between the Comptroller General and legislative and judicial agencies the pro- visions of this sentence may be extended to the accounts and records of such agencies. General provisions Sec. 118. As used in this part, the term “executive agency” means any executive department or independent establishment in the executive branch of the Government but (a) except for the purposes of sections 114, 116, and 119 shall not include any Gov- ernment corporation or agency subject to the Governmont Corporation Control Act (59 State. £07), and (b) except for the purposes of sections 111, 114, and 116 shall not include the Post Office Department. Sac. 119. The head of each executive agency is authorized to designate the place or places, at the’seat of government or elsewhere, at which the administrative examination of fiscal officers’ accounts will be performed, and with the concurrence of the Comptroller General to waive the administrative exam- ination in whole or in part: Provided, That the same authority is hereby conferred upon
11158 the officers responsible for the administra- tive examination of accounts for legislative and judicial agencies. Trrie TI—APPROPRIATIONS TRANSFERS BETWEEN APPROPRIATIONS Src. 201. After the end of the second full fiscal year following the date of enactment of this act, with the approval of the Presi- dent, the head of each department and estab- Ushment in the executive branch of the Gov- ernment ia authorized to make transfers and adjustments between appropriations within his department or establishment in order to promote economy and efficiency, but no ap- propriation shall he increased or decreased thereby during any fiscal year by more than 5 percent, Reports of such transfers and adjustments with the reasons therefor shall be made currently to the President and the Congress and shall be summarized annually in the budget. AUTHORIZATIONS FOR APPROPRIATIONS Src. 202. No request for legislation, which, if enacted, would authorize subsequent ap- propriations for a department or establish- ment in the executive branch of the Govern~ ment, shall be transmitted to the Bureau of the Budget, to the President, or to the Con- gress by such department or establishment, or by any organizational unit thereof, with~- out the prior approval of the head of such department or establishment, REDUCTIONS IN APPROPRIATIONS Src. 208. To promote economy and to re- duce expenditures, the President is author- fved to establish and to modify from time to time reserves from appropriations for the executive branch of the Governmezit to the extent that he determines that the purposes intended by the Congress will be accom- plished by the expenditure of amounts less than the amounts appropriated. ADJUSTMENT OF APPROPRIATIONS FOR REORGANIZATION Sec, 204. (a) When under authority of Jaw a function or an activity is transferred or assigned from one agency within any de- partment or establishment to another agency in the same department or establishment, the balance of appropriations which are de- termined by the head of such department or establishment to be available and necos- sary to finance or discharge the function or activity so transferred or assigned may, with the approval of the President, be transferred to, and be available for use by, the agency to which said function or activity is trans- ferred or assigned for any purpose for which said funds were originally available. Bal- ances so transferred shall be credited to any applicable existing appropriation account or accounts, or to any new appropriation ac- count or accounts, which are hereby au- thorized to be established, and shall be merged with funds in the applicable exist- ing or newly established appropriation ac- count or accounts and thereafter accounted for as one fund. (b) When under authority of law a funce tion or activity is transferred or assigned from one department or establishment to another department or establishment, the balance of appropriations which are deter- mined by the President to be available and necessary to finance or discharge the func- tion or activity so transferred or assigned, shall be transferred to and be available for use by the department or establishment to which said function or activity is transferred or assigned for any purpose for which said funds were originally available. Balances so transferred shall be credited to any appli- cable existing appropriation account or ac- counts, or to any new appropriation account or accounts, which are hereby authorized to be established, and shall be merged with funds in the applicable existing or newly CONGRESSIONAL RECORD—HOUSE established appropriation account of ac- counts and thereafter accounted for as one fund. Trruz TII—Rereats aND SAVINGS PROVISIONS REPEALS Src. 301. The following acts and parts of acts are hereby repealed: (1) Section 10 of the act of August 1, 1914 (38 Stat. 680; U. 8. C., title 31, sec. 582). (2) So much of section 4 of the act of June 20, 1874 (18 Stat. 109; U. 8. C., title 31, sec. 583 (1)), as reads: “; and hereafter the Secretary of the Treasury shall annually submit to Congress d“tailed estimates of ap- propriations required for said expenses;". (8) The last proviso in the first paragraph under the heading “Judgments; United States Courts” of the act of April 27, 1904 (33 Stat. 422; U. 8. C., title 31, sec. 683 (2)). (4) The last sentence of section 6 of the act of August 5, 1882 (22 Stat. 266; U. 8. C., title 31, sec. 683 (3)). (5) So much of the matter appearing un- der the heading ‘Mints and Assay Offices” of the act of March 4, 1911 (86 Stat. 1292; U. 8. C., title $1, sec. 583 (4)), as reads: “, and the Secretary of the Treasury shall, for the fiscal year 1913, and annually there- after, submit to Congress, in the regular book of estimates, detailed estimates for the ex- penses of this Service.” (€) So much of the matter appearing un- der the heading “Treasury Department” in the act of August 26, 1912 (37 Stat. 596, U. S. C., title 31, sec. 583 (5)), as reads; “Provided further, That estimates hereunder shall be submitted in detail for the fiscal year 1914, and annually thereafter”. (7) The last sentence of the paragraph un- der the heading “Federal Farm Loan Board” of the act of September 8, 1916 (U. 8. C, title 31, sec. 583 (7) ), appearing on page 803 of volume 39 of the Statutes at Large; and the third and last paragraph under the heading “Federal Farm Loan Bureau” of the act of March 3, 1917 (U. 8. C., title 31, sec. 583 (7)), appearing on page 1084 of volume 39 of the Statutes at Large. (8) The last sentence on page 48 of volume 30 of the Statutes at Large, in the act of June 4, 1897 (U.S. C., title 31, sec. 583 (8)). (9) The first sentence of section 6 of the act of March 3, 1919 (40 Stat. 1309; U.S. C., title 31, sec. 583 (10) ). (10) The last proviso under the heading “Office of the Chief Signal Officer” of the act of March 2, 1907 (34 Stat. 1159; U.S. C., title $1, sec. 583 (11)). (11) The sixth full paragraph appearing on page 648 of volume 20 of the Statutes at Large in the act of March 8, 1897 (U0. 8. C., title 31, sec. 583 (13)). (12) So much of the matter following the heading “Bureau of Mines” in the act of March 3, 1915 (38 Stat. 858; U. 8S. C., title 31, sec, 583 (14)) as reads: “, estimates shall be submitted specifically for all personal serv- ices required permanently and entirely in the Bureau of Mines at Washington, D. C., and previously paid from lump-sum or gen-« eral appropriations;”’. (18) The proviso at the end of the fourth paragraph on page $12 of volume 37 of the Statutes at Large, in the act of August 17, 1912 (U. 8. C., title 31, sec. 583 (15)). (14) The third paragraph appearing on page 1082 of volume 32 of the Statutes at Large, in the act of March 8, 1908 (U. 8. C., title 31, sec. 583 (16)). (15) So much of section 12 of the act of June 26, 1906 (34 Stat. 4860; U. 8. C., title 81, sec. 583 (18) ), as reads: “and he shall annu- ally submit to Congress estimates to cover the cost of the establishment and mainte- ngnce of fish hatcheries in Alaska, the sala- Ties and actual traveling expenses of such offictals, and for such other expenditures as may be necessary to carry out the provisions of this act.” JULY 26 (16) The proviso at the end of the first full paragraph on page 456 of volume 32 of the Statutes at Large, in the act of June 28, 1902 (U. S. C., title $1, sec, 583 (20)). (17) The second full paragraph on page 841 of volume 38 of the Statutes at Large, in the act of March 8, 1915 (U. 8. C., title 31, sec, 583 (21)). (18) The fourth full paragraph on page 2 of volume 38 of the Statutes at Large, in the act of May 1, 1913 (U. 8. C., title 31, sec, 683 (22)). (19) The proviso at the end of the second paragraph under the heading “Bureau of Immigration and Naturalization” of the act of March 4, 1907 (34 Stat. 1829, 1880; U. 8. C., title 31, sec. 583 (28) ). (20) The second full paragraph on page 874 of volume 35 of the Statutes at Large, in the act of May 27, 1908 (U. 8. C., title 31, sec, 583 (25) ). (21) So much of the last paragraph on page 396 of volume 87 of the Statutes at Large, in the act of August 23, 1912 (U. 8. C., title 31, sec. 683 (26)), as reads: “For the fiscal year 1914 and annually thereafter es- timates in detail shall be submitted for all personal services required in the Indian Office,”. (22) The proviso at the end of the first full paragraph on page 646 of volume 41 of the Statutes at Large, in the act of May 29, 1920 (U. 8. C., title 31, sec. 584). (28) Section 3660 of the Revised Statutes (U. S.C., title 31, sec, 585), (24) Section 4 of the act of June 22, 1906 (34 Stat. 448; U. 8. C., title 31, sec. 686), (25) Section 4 of the act of March 4, 1909 (85 Stat. 907; U. 8. C., title 31, sec. 587). (26) Section 2 of the act of June 80, 1906 (34 Stat. 762; U. 8. C., title 31, sec. 588); and the proviso in the first paragraph on page 1367 of volume 34 of the Statutes at Large, in the act of March 4, 1907 (U. S. C., title 31, sec. 588). (27) Section $661, as amended, of the Revised Statutes (U.S. C., title 31, sec. 580), (28) So much of the first paragraph on page 265 of volume 24 of the Statutes at Large, in the act of August 4, 1886 (U. 8. C., title 21, sec. 590), as reads: “: Provided further, That all printing and engraving for the Geological Survey, the Coast and Geo- detic Survey, the Hydrographic Office of the Navy Department, and the Signal Service shall hereafter be estimated for separately and in detail, and appropriated for separately for each of said bureaus.” (29) Section 3662 of the Revised Statutes (U.S. C., title 81, sec. 591). (30) Section 3663 of the Revised Statutes, as amended (U.S. C., title 31, sec, 594). (81) Section 3664 of the Revised Statutes (U.S. C., title 31, sec, 597). (32) Section 3665 of the Revised Statutes (U. 8. C., title 31, sec. 598). (33) The second paragraph under the heading “Revenue Cutter Service” in the act of March 2, 1889 (25 Stat. 907; U. S. C., title 31, sec, 600). (34) So much of the second full paragraph on page 612 of volume 24 of the Statutes at Large, in the act of March 8, 1887 (U. S. C., title $1, sec. 601), as reads: “That the Sec- retary of the Treasury shall for the fiscal year 1887, and for each fiscal year thereafter in the annual estimates, report to Congress the number of persons employed outside of the District of Columbia, as superintendents, clerks, watchmen and otherwise, and paid from appropriations for the construction of public buildings showing where said persons are employed, in what capacity, the length of time and at what rate of compensation,”. (85) So much of the sixth full paragraph on page 374 of volume 26 of the Statutes at Large, in the act of August 30, 1800 U. 8. C., title 81, sec. 601) as reads: “; and ereafter the Secretary of the Treasury shall annually report to Congress in the book of
1950 estimates a statement of the expenditure of the appropriation for ‘repairs and preser- vation of public buildings’ which shall show the amount expended on each public build- ing and the number of persons employed and paid salaries from such appropriation.” (36) So much of section 1317 of the Rev- enue Act of 1921 (42 Stat. 314; U. 8. C., title 31, sec. 602) as reads: “; and the Secretary of the Treasury shall submit for the fiscal year 1921, and annually thereafter, an esti- mate of appropriations to refund and pay back duties or taxes erroneously or illegally assessed or collected under the internal rev- enue laws, and to pay judgments, including interest and costs, rendered for taxes or penalties erroneously or illegally assessed or collected under the internal revenue laws”. (37) The first paragraph on page 133 of volume 22 of the Statutes at Large, in the act of July 1, 1882 (U.S. C., title 31, sec. 603). (38) The eighth paragraph under the heading “Foreign Intercourse” of the act of May 3, 1905( 33 Stat. 1214; U.S. C., title 31, sec. 603). (39) The last paragraph on page 48 of volume 30 of the Statutes at Large, in the act of June 4, 1897 (U. 5S. C., title 31, sec. 604). (40) The eighth paragraph under the heading “Under the Engineer Department” of the act of February 13, 1913 (37 Stat. 671; U.S. C., title 31, sec, 605). (41) The sixth paragraph under the head- ing “Fortifications in Insular Possessions” of the act of March 3, 1905 (33 Stat. 847; U. 8. C., title 3, sec. 606). (42) So much of the first section of the act of August 4, 1886 (24 Stat. 246; U.S .C., title 31, sec. 607), as reads: “the estimates for the Army and Navy hospital service shall be submitted as a part of the Military Es- tablishment.” (43) The first full paragraph on page 117 of voluine 31 of the Statutes at Large, in the act of April 17, 1900 (U. 8. C., title 31, sec. 609). (44) Section 3668 of the Revised Statutes (U. 8. C., title 31, sec. 610). (45) So much of the first paragraph on page 357 of volume 20 of the Statutes at Large, in the act of March 3, 1879 (U.8,C, title 31, sec. 611), as reads: “: Provided, That hereafter, in making his estimates for rail- way muil service the Postmaster General shall separate the estimate for postal-car service from the general estimates; and in case any increase or diminution of serv- ice by postal cars shall be made by him, the reasons therefor shall be given in his annual report next succeeding such increase or diminution.” (46) So much of the first paragraph un- der the heading ‘“‘United States Geological Survey” in the act of March 3, 1887 (24 Stat. 527; U. S. C., title 31, sec. 612), as reads: “; and hereafter the estimates for the Geo- logical Survey shall be itemized.” (47) The first paragraph on page 455 of volume 32 of the Statutes at Large, in the act of June 28, 1902 (U. S. C., title 31, sec, 612). (42) Section 4 ¢i the act of August 15, 1876 (19 Stat. 200; U. 8. C., title 31, sec. 613). (49) The fourth paragraph of section 26 of the act of June 380, 1913 (38 Stat. 103, U.S. C., title 31, sec. 613). (50) The eighth full paragraph on page 1421 of volume 36 of the Statutes at Large, in the act of March 4, 1911 (U. 8. C., title 81, eec. 614). (61) The eighth full paragraph on page 1206 of volume 83 of the Statutes at Large, in the act of March 3, 1906 (U. 8. C., title 31, sec. 615). (62) The fourth full paragraph under the heading “Government in the Territories” of the act of July 16, 1914 (38 Stat. 479; U. 8. C., title 31, sec. 616). (53) The first full paragraph on page 462 of volume 39 of the Statutes at Large, in CONGRESSIONAL RECORD—HOUSE the act of August 11, 1916 (U. 5. C., title $1, sec, 617), (54) The proviso in the first paragraph under the heading “Rent in the District of Columbia” of the act of March 4, 1915 (38 Stat. 1108; U.S. C., title 31, sec. 617). (55) The seventh paragraph on page 433 of volume 32 of the Statutes at Large, in the act of June 28, 1902 (U. ~. C., title 31, sec. 618). (56) The ninth full paragraph on page 755 of volume 36 of the Statutes at Large, in the act of cvune 25, 1910 (U. 8. C., title 81, sec. 618). (57) The fourth full paragraph on page 862 of volume 27 of the Statutes at Large, in the act of August 5, 1892 (U. 8. C., title 31, sec. 619). (58) The first full paragraph on page 764 of volume 36 of the Statutes at Large, in the act of June 25, 1910 (U. S. C., title 31, sec. 620). (59) Section 6 of the act of August 1, 1914 (38 Stat. 679; U. S. C., title 31, sec. 621). (60) The‘last full sentence in the first paragraph on page 254 of volume 23 of the Statuteg at Large, in the act of July 7, 1884 (U. 8. C., title 31, sec. 622). (61) Section 5 of the act of June 30, 1996 (34 Stat. 763; U.S. C., title $1, sec. 626). (62) The proviso at the end of the first Paragraph on page 679 of volume 37 of the Statutes at Large, in the act of August 24, 1912 (U. 5. C., title 31, sec. 626). (68) Section 7, as amended, of the act of August 26, 1912 {37 Stat. 626; 37 Stat. 790; U.S. C., title 31, sec. 629). (64) The fourth full paragraph on page 854 of volume 87 of the Statutes at Large, in the act of March 4, 1913 (U. 8. C., title 31, sec, 630). (65) The proviso at the end of the seventh paragraph on page 1030 of volume 31 of the Statutes at Large, in the act of March 3, 1901 (U. 8. C., title 31, sec. 633). (66) The second paragraph under the heading “Contingent, Bureau of Ordnance” of the act of July 12, 1921 (42 Stat. 128; U. 8. C., title 31, sec. 636), down through the first proviso therein. (67) So much of the third paragraph under the heading “Contingent expenses, Navy De- partment” of the act of June 22, 1906 (34 Stat. 427; U.S. C., title 31, sec. 637), as reads: “and hereafter it shall not be lawful to ex- pend, for any of the offices or burenus of the Navy Department at Washington, any sum out of appropriations made for the Naval Establishment for any of the purposes men- tioned or authorized in the said foregoing paragraph.” (68) So much of the paragraph under the heading ‘Increase of the Navy, equipment” of the act of March 3, 1915 (38 Stat. 952; U. 8. C., title 31, rec. 648), as reads: “and beginning with July 1, 1915, equipment out- fits shall be charged to appropriation ‘In- Crease of the Navy, Construction and ma- chinery,’” (€9) The two provisos in the paragraph under the heading “Fuel and transportation” of the act of March 8, 1915 (38 Stat. 944; U. 8. C., title 31, sec. 649). (70) The proviso in the tenth paragraph on page 236, of volume 28 of the Statutes at Large, in the act of August 6, 1894 (U. 8. C., title 31, sec. 650). (71) The fourth full paragraph on page 1175 of volume 34 of the Statutes at Large, in the act of March 2, 1907 (U.S. C., title 31, sec. 655). (72) So much of the firet full paragraph on page 1391 of volume 42 of the Statutes at Large, in the act of March 2, 1923 (U. 8. C., title 31, sec. 656), as reads: “and the budget estimates for each of such appropriations shall hereafter carry separately the amounts required for such transportation costs.” (73) The proviso in the seventh full para~ graph on page 520 of volume 32 of the Stat- 11159 utes at Large, in the act of June 30, 1902 (U. S. C., title 31, sec. 657). (74) The proviso in lines 2 through 8 on page 710 of volume 36 of the Statutes at Large, in the act of June 25, 1910 (U. 8. C., title 31, sec. 664). (75) Section 3682 of the Revised Statutes (U. 8. C., title 31, sec. 674). (76) Section 3683 of the Revised Statutes (U. 8. C., title 31, sec. 675). (77) The second full paragraph on page 1303 of volume 41 of the Statutes at Large, in the act of March 3, 1921 (U.S. C., title 31, sec 676). (78) The proviso in lines 7 through 17 on page 203 of volume 20 of the Statutes at Large, in the act of June 19, 1878 (U. 8. C., title 31, sec. 677). (79) Section 3684 of the Revised Statutes (U. 8. C., title 31, sec. 681). (80) Saction 6 of the act of May 80, 1908 (U. 8. C., title 31, sec. 683). (81) So much of the paragraph under the heading “Pay of Assistant Custodians and Janitors,” on pages 1153 and 1154 of volume 31 of the Statutes at Large, in the act of March 3, 1901 (U. 8. C,, title 31, sec. 684), as reads: “, and hereafter no other fund appropriated shall be used for this service.” (82) The second paragraph under the heading “United States Commerce Court” of the act of March 4, 1911 (36 Stat. 1234; U.S. C., title 31, sec. 687). (83) Section 26 of the act of June 30, 1918 (38 Stat, 103; U. 5. C., title 31, sec. 688). (84) Section 400 of the Second Deficiency Appropriation Act, 1947 (U.8.C., title 31, sec, 694). (85) Section 607 of the act of June 80, 1945, as amended (59 Stat. 304; U. 8. C., title 5, sec. 947). (86) Section 3 of the act of March 8, 1875, as amended (18 Stat. 370; U.S. C., title 31, sec. 624). (87) So much of the act of March 26, 1934, as amended (48 Stat. 466; U.S. C., title 5, sec. 118c), as reads ‘‘with the budget esti- mates.” (88) So much of the paragraph under the heading “Department of State” in the act of August 5, 1909 (36 Stat. 119; U. 8. C., title 5, sec, 157), as reads: “and estimates for further appropriations hereunder shall in- clude in detail salaries for all persons to be employed and paid in the Department of State at Washington, District of Colum- bia” (89) The last proviso uncer the head “Working Capital Fund” in the act of July 12, 1943 (57 Stat. 393; U. 8. C., title 5, sec. 558a). (0) 80 much of sectlon 17 of the act of May 22, 1920, as amended (41 Stat. €20; U. 8. C., title 5, sec. 730), as reads: “an- nually to the Bureau of the Budget.” (91) Section 31 of the act of September 7, 1916, ws amended (39 Stat. 749; U. 8. C., title 5, sec. 782). (92) The last sentence of section 35 of the act of September 7, 1916, as amended (39 Stat. 749; U. 3. C., title 5, sec. 785), (93) So much of section 1 of the act of October 1, 1890 (26 Stat. 653; U. S. C., title 10, sec. 214), as reads: “and the Signal Corps cf the Army shall remain a part of the MIli- tary Establishment under the direction of the Secretary of War, and all estimates for its support shall be included with other es~- timates for the support of the Military Es- tablishment.” (94) The last proviso of section 4 of the act of March 12, 1926 (44 Stat. 206; U. 8. C., title 10, sec. 1597). (95) So much of section 1 of the act of June 12, 1917, as amended (40 Stat. 153; U. 8. C., title 16, sec. 452), as reads: “and the Secretary of the Interior is directed to submit, for the fiscal year 1919 and annually thereafter, estimates of the amounts required for the care, maintenance, and devclopment of the said parks.”
11160 (96) So much of section 1 of the act of July 24, 1876, as amended (19 Stat. 99; U. 8. G., title 24, sec, 278), as requires esti- mates for the care and maintenance of the national military cemeteries to be submit< ted annually by the Director of the National Park Service. (97) So much of section 1 of the act of January 24, 1923 (42 Stat. 1208; U. 5. C., title 31, sec. 12), as reads: "The aggregate of all estimates of appropriations from the ‘reclamation fund’ contained in the budget for any fiscal year shall be included in the totals of the budget for that year.” (98) The second paragraph under the heading “Pay, miscellaneous” of the act of March 8, 1909 (35 Stat. 754; U. 8. C., tite 31, sec. 609a). (99) The third paragraph under the head- ing “Office of the Fourth Assistant Postmas- ter General” of the act of June 9, 1696 (29 Btat. 316; U. S. C., title 31, sec, 610a). (100) The last proviso under the heading “National Home for Disabled Volunteer Soldiers” of the act of October 2, 1988, as amended (25 Stat. 543; U. 8. C., title 31, sec. 719). (101) Section 119 of the act of June 3, 1916 (39 Stat. 213; U. 8. C., title 32, sec. 25). (102) So much of the fourth full paras graph on page 558 of volume 38 of the Stat- utes at Large in the act of August 29, 1916 (U. 8. C., title 34, sec. 504), as reads: “and the Secretary of the Navy shall each year, in the annual estimates, report to Congress the number of persons so employed, their duties, and the amount paid to each.” (103) The last proviso in the third par- agraph on page 8377 of volume 87 of the Statutes at Large in tho act of August 23, 1912 (U.S. C., title 39, sec. 769). (104) Section 27 of the act of January 12, 1895, as amended (28 Stat. 604; U. 8. C., title 44, sec. 37), ‘ (105) The eighth full paragraph on page 882 of volume 35 of the Statutes at Large in the act of May 27, 1908 (U. S. C., title 44, sec. 37). (106) The last paragraph under the head- ing “Government in the Territories” in the act .° June 20, 1874 (18 Stat. 99; U. 8. C, title 48, sec. 1456). SAVING PROVISIONS Sxc. 302. (a) The omission of any provision of law from the provisions of law repealed under section 301 shall not be construed as limiting the application of section 201 or 216 of the Budget and Accounting Act, 1921, as amended, or the powers of the President thereunder, or as evidencing an intent that such provision was not to be superseded by such sections. (b) Whenever any law authorizes expendi- tures for a particular object or purpose to be made from an appropriation item referred to in such law by the specific title thereto- fore used for that appropriation item in the appropriation act concerned, and thereafter such title is changed or is eliminated from such appropriation act, expenditures for such object or purpose thereafter may be made from any corresponding appropriation item. (c) Except where authority for perform- ance of a function js specifically repealed in section 301, none of the provisions of such section shall be construed as affecting the jurisdiction or responsibility of any agency or officer of the Government over any func-~ tion or organizational unit referred to tn such section. (d) Exiating laws, policies, procedures, and directives pertaining to functions covered by this act, and not inconsistent herewith or repealed hereby, shall remain in full force and effect unless and until superseded, or ex- cept as they may be amended, under the authority of this act or under other appro- priate authority. CONGRESSIONAL RECORD—HOUSE With the following committee amend- ments: Page 6, line 17, strike out all of section mpage 7, line 11, strike out 104" and insert “pane 7, Une 20, strike out “105” and insert Page 8, line 2, strike out 106" and insert i pege 18, line 2, strike out all of section Mage 18, line 16, strike out “202” and insert a eage 19, line 1, strike out all of section wnat 19, line 10, strike out “204” and insert The committre agreed to. Mr. KARSTEN. Mr. Chairman, I have four minor amendments at the Clerk's desk. I ask unanimous consent that they be considered en bloc. The CHAIRMAN. Is there objection to the request of the gentleman from Missouri? There was no objection. The Clerk read as follows: Amendments offered by Mr. Karsten: Poge 1, line 7, strike out “Definition.” Page 2, line 4, strike out “Performance Budget and Regulations”; line 13, strike out the comma and Insert in lieu thereof a semicolon; line 14, strike out “constituting & performance budget,”; lines 15 and 16, strike out “‘(b) a segregation of operating, and of capital and investment programs;”. . aie 4, ine 22, after “Sec, 204”, insert (a).” Page 5, line 3, insert: “(b) The budget and statements fur- nished with any proposed supplemental or deficiency appropriations shall be accom- panied by information as to personal serv= ices and other objects of expenditure in the same manner and form as in the budget for the fiscal year 1950: Provided, That this re- quirement may be waived or modified, either generally or in specific cases, by foint action of the committees of Congress having juris- diction over appropriation.” Mr. HARVEY. Mr. Chairman, I offer an amendment to the amendment, The Clerk read as follows: Amendment offered by Mr. Harvey to the amendment: Page 5, line 3, strike out the period and insert: “And provided further, That nothing in thie act shall be construed to limit the authority of the Committee of Congress to request and receive such in-~ formation in such form as they may desire in consideration of and action upon budget estimates.” Mr. KARSTEN. Mr. Chairman, I would like to make a brief explanation of the amendments I submitted. I would like to also add that we see no objection to the amendment offered by the gentle- man from Indiana (Mr. Harvey] and will be glad to accept it. Mr. Chairman, the Clerk, in reading the amendment, used the word ‘“com- mittee,” singular. The word is “com- mittees,” plural. I suggest that the amendment be corrected accordingly. The four amendments I am offering were suggested by members of the Com- mittee on Appropriations. The amend-~ ments in no way impair the objectives of the bill, I have discussed these minor changes with the Comptroller General, the Secretary of the Treasury, and the amendments were JuLy 26 Director of the Bureau of the Budget. They have no objection to the amend- ments. Under the first three amendments the President will have authority to submit either a performance budget or an item budget. At the present time we are using what is known as the performance or functional budget. The proposed amendments will continue existing au- thority and under these minor changes the President may submit either a func. tional or item type budget. The last amendment relates to the green-sheets provision. It simply pro- vides that this statistical information shall be furnished to the Congress along with the budget in justification of budget requests. Mr. Chairman, I hope the amendments will all be adopted. Mr. HARVEY. Mr. Chairman, I have been informed that the amendment as offered will require a slight revision. I ask unanimous consent to withdraw 1t and reoffer it in the proper form. The CHAIRMAN. Is there objection? There was no objection. The Clerk read as follows: Amendment offered by Mr. Harvey: At the end of the amendment offered by Mr. Kar- STEN, add the following amendment. Strike out the period and insert: “And provided further, That nothing in this act shall be construed to limit the authority of the com- mittees of Congress to request and receive such information in such form as they may desire in consideration of and action upon budget estimates.” Mr. KARSTEN. Mr. Chairman, if the gentleman will yield, the committees of Congress now have this authority. I think it is desirable, however, to restate it in the bill as the gentleman from In- diana has requested. I think we on this side can agree to the amendment. Mr. HARVEY. May I say by way of explanation that we have taken lan- guage that has previously been written into appropriation bills and put it into substantive legislation. This was done at the request of the gentleman from South Dakota [Mr. Case], of the Appro- priations Committee. I do not know that it is absolutely necessary, but it may well be an added precaution that will protect the rights of the Appropriations Committee and the Congress. The CHAIRMAN. The question is on the amendment offered by the gentle- man from Indiana {Mr. Harvey] to the amendment offered by the gentleman from Missouri [Mr,. Karsten). The amendment to the amendment was agreed to. The CHAIRMAN. The question is on the amendment offered by the gentle- man from Missouri, as amended. The amendment was agreed to. The CHAIRMAN. Under the rule, the Committee rises. Accordingly the Committee rose; and the Speaker having resumed the chair, Mr. Enotes of California, Chairman of the Committee of the Whole House on the State of the Union, reported that that Committee, having had under con- sideration the bill (H. R. 9038) to au- thorize the President to determine the form of the national budget and of de-
1950 partmental estimates, to modernize and simphfy governmental accounting and auditing methods and procedures, and for other purposes, pursuant to House Resolution 729, he reported the bill back to the House with sundry amendments adopted by the Committee of the Whole. The SPEAKER. Under the rule, the previous question is ordered. Is a separate vote demanded on any amendment? If not, the Chair will put them in gross. The amendments were agreed to. The SPEAKER. The question is on the engrossment and third reading of the bill. The bill was ordered to be engrossed and read a third time, and was read the third time. The SPEAKER. The question is on the passage of the bill. The bill was passed. A motion to reconsider was laid on the table Mr. KARSTEN. Mr. Speaker, I ask unanimous confent that all Members may have five legislative days in which to extend their remarks on the bill just passed, The SPEAKER. Is there objection to the request of the gentleman from Mis- souri? There was no objection. COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS Mr HOLIFIELD. Mr. Speaker, I ask unanimous consent that the Committee on Expenditures in the Executive De- partments have until midnight tonight to file a report on the bill H. R 9129. The SPEAKER Is there objection to the request of the gentleman from California? There was no-objection, AUTHORIZING ANNUAL AND SICK LEAVE WITH PAY FOR COMMISSIONED OFFI- CERS OF PUBLIC HEALTH SERVICE Mr, PRIEST submitted a conference report and statement on the bill (S. 2160) to amend the Public Health Service Act to authorize annual and sick leave with pay for commissioned officers of the Pub- lic Health Service, to authorize the pay-~ ment of accumulated and accrued an- nual leave 1n excess of 60 days, and for other purposes. GOVERNMENT PUBLICATIONS Mr. FURCOLO. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and revise and extend my remarks. The SFEAKER. Is there objection to the request of the gentleman from Massachusetts? There was no objection. Mr. FURCOLO. Mr. Speaker, the other day in addressing the House I tried to point out the necessity for paying some attention to economy in those en- deavors which have nothing to do with defense. In line with that thought I pointed out the need to try to hmit the printing being done by o great many governmental agencies and departments, I prepared a resolution authorizing a committee to be set up to determine what publications the agencies and depart- CONGRESSIONAL RECORD—HOUSE ments of Government were printing which had no relation whatever to de- Tense matters. I have since learned that the Joint Committee on Printing would have juris- diction of such an investigation and I want to urge them to have hearings as quickly as possible to determine what publications, if any, can be eliminated during this emergency in trying to econ- omize wherever it is possible to do so. This is merely one small attempt to economize, but I think it should be done right away. The SPEAKER. Under previous order of the House, the gentleman from Georgia | Mr, LANHAM], is recognized for 20 minutes, OUR NATIONAL DEFENSE Mr, LANHAM. Mr. Speaker, not once before have I asked for time to speak to the House under a special order. Last night as I lay upon my bed, not able to sleep, I determined to speak my convic- tions, although my speaking was only the voice of one crying in the wilderness and with no language but a cry. Sleep would not come because of the weight of responsibility that rests upon me, and upon every other Member of Congress in this hour of crisis and danger Of course, this same responsl- bility rests upon every citizen of the United States, but not to so great a de- gree as upon us, their representatives. Each one of us was chosen because the people back home at least believed us to be men of integrity, of character, of some ability, and with other qualities that fitted us for leadership. If we fail to exercise effective leadership during these trying and terrifying days, our constitu- ents should and will retire us in favor of others who will furnish adequate leader- ship. While I think that the Congress is not primarily to blame for the tragic lack of preparedness on the part of our armed services, nevertheless, we will be respon- sible 1f we allow it to continue. We were misled by scme pompous and self- important officials of our Defense Estab- lishment, to believe that our Defense Establishment was adequate for our pro- tection against attack. Moreover, some of the funds appropriated by Congress were held up by the President, no doubt on the advice of the boastful man who heads our Defense Establishment. I can- not blame the President too much, since he had to depend for the facts and advice upon which he based his actions upon these same men who were sadly wrong in their judgment as to our needs for defense. He will have to bear the blame, however, if he allows these men to bungle further. As I say, I feel we are not to blame for our lack of preparedness. But we are to blame if we allow this condition to con- tinue, or if we allow our economic and fiscal affairs to degenerate to the same low ebb as our Defense Establishment. How, then, shall we meet and measure up to our responsibilities? In the first place, I am sure that we must face some hard facts, acknowledge their existence, and quit our wishful thinking and day-dreaming. 11161 And the first hard fact that we must face is that world war III began with the invasion of South Korea. It is not the dramatic and awe-inspiring beginning that our defense chiefs expected; neither is it the kind of war they envisioned, But I am convinced that after Korea will come Formosa, and then western Germany, Yugoslavia, possibly Iran, Greece, and Turkey. The refusal of the Russians to fight the war our defense chiefs had prepared for reminds me of the old story of the boasting southerner who, before he faced his first Yank, claimed that the southerners could whip the Yankees with cornstalks, After four hard years of fighting, his statement was recalled to him. In answer he ruefully remarked that the Yanks refused to fight with cornstalks, So if we would fight Stalin we must meet him fully prepared to fight what- ever kind of war, and with whatever kinds of weapons, heemploys To recog- nize this as the beginning of world war III is necessary if we are to arm ade- quately and prepare our economic forces for the struggle. This does not mean that cur might, both military and indus- trial, potentially now and eventually in fact, may not be such a warning to So- viet Russia that she will decide that dis- cretion is the better part of valor and cease to urge her satellites to attack around the perimeter of the world as she now threatens to do. The second hard fact that we must face is human nature as exemplified 1n the spectacle of selfishness and lack of patriotism that has caused a wave of unnecessary buying and hoarding. En- lightened self-interest, and the normal and laudable desire of every man to do well and prosper for his own and his family’s sake is the spark plug of our free-enterprise system, and the glory of our free way of life. But until men’s hearts are changed and they accept the Christian instead of the materialstic philosophy of life, which will happen only n the millennium, we must realize that this enlightened self-interest so easily degenerates under stress into utter selfishness. The third fact that we must face is that there is no easy way out of our plight. Freedom has ever been hard-won and as hardly held. We cannot temporize with halfway measures. Having faced these unpleasant and hard facts, what course shall we pursue to preserve our own liberty and that of the free peoples of the world? In the first place, the President should give us military and civilian Defense De- partment heads in whom we can have confidence. Acknowledgment of failure on their part and repentance cannot suf- fice in this crisis. The President has a load of responsibilites upon his shoulders that 1s man-killing, and must have ad- visers upon whom he can depend and in whom the Congress has faith. This is a struggle for survival, and only the fit- test should be placed in high places of leadership. In the next place, the Congress must forget partisan politics and give the Pres- ident the support and encouragement that he must have to wage a successful
11162 fight against the forces of despotism and brutality. This we can do by fur- nishing the necessary funds to hasten our armament program to the utmost. We must then leave the actual conduct of the war to those leaders in whom we have confidence, A few weeks ago when I suggested that the Secretary of National Defense ought to resign, I did that in a letter which I sent back home. It was intended only for the people back home. It was copied in the Atlanta Journal and then by the Associated Press. I want to tell you that the response from all over the country has been tremendous. When I suggested that I did not suggest it as a sort of punishment for this man who has made so many errors. I did not do it to try to seek a scapegoat for the Congress or for others who are responsi- ble, but for this purpose alone: The man has demonstrated his unfitness for the job. In times lke this, in a crisis like this, not only he but the head of every other department of the Govern- ment ought to be men of ability, men who can see that our nationa] interests are protected. But it is in the industrial and civilian mobilization effort that Congress must bear the responsibility and the blame if things go wrong. As I have said, this is a struggle for the survival of freemen and our way of life. Hence we must mo- bilaze our civilian and industrial poten- tial as thoroughly as we do our military forces. Business and industry must go on. But it cannot go on as usual Re- cent events in the field of price rises, in- flation, and hoarding prove that it can- not go on as usual. If we hesitate and delay our industrial mobilization and the enlistment of our civilian forces, we will fall into the trap set for us by Stalin, who thinks he wil] never have to fight us directly, if he can force us to spend our strength and waste our resources around the world, and dissipate our industrial power by profiteering and industrial strife at home. So I urge that we quit talking about controls in the future, and act now to freeze, at the pre-Korea level, prices, wages, and profits. Action is imperative now that our manpower be conserved and our industrial strength protected. Wild inflation will ruin us. Prices and wages can easily be frozen at reasonable levels, and profits should be curbed by an excess-profits tax, imposed now and not next year. Strikes should be forbidden by law. By and large labor cooperated wonder- fully well during the past war with in- dustry to do the greatest job of produc- tion the world has ever seen. But there were glaring exceptions which incensed the people and lowered the morale of our fighting men. This must not be re- peated. Our nondefense expenditures should be cut to the bone, else our economy will be unable to stand the strain. More- over, we must finance this war as we go. The huge national debt is the result of our failure to do this during the last war, while huge fortunes were made. We cannot afford to add to this debt the stupendous sums that will be necessary to bring the present war and whatever CONGRESSIONAL RECORD—HOUSE may follow to a successful determina- tion. Increased taxes are not popular, but they are necessary if we are to sur- vive as a free nation. It may be that they should not be imposed until the Ways and Means Committee has had time to study the entire problem, and report sometime early next year. That applies to taxes generally, but not to the excess-profits tax which should be en- acted now. These are hard and unpopular meas- ures, But so is the job of fighting which our young men are so bravely doing. Surely if we can ask them to give their lives for freedom and a free world, we can discipline ourselves and show the world that a democracy can survive in the face of the worst that a ruthless and Godless enemy can do We can win and preserve freedom, justice, and Christianity for the peo- ples of the world, but we cannot do it by halfway measures, We are sometimes discouraged and disheartened at the apparent success of brute force and criminal practices in world-wide affairs Occasionally, I am tempted to agree with the pessimistic philosophy of Matthew Arnold so well expressed in some of the most beautiful words 1n all English poetry, and I quote: The sea of faith Was once, too, at the full, and round earth’s shore Lay like the folds of a bright girdle furl'd. But now I only hear Its melancholy, long, withdrawing roar, Retreating, to the breath Of the night-wind, down the vast edges drear And naked shingles of the world. And, love, let us be true To one another! for the world, which seems To Me before us like a land of dreams, 80 various, so beautiful, so new, Hath really neither joy, nor love, nor lght, Nor certitude, nor peace, nor help for pain; And we are here as on a darkiing plain Swept with confused alarms of struggle and flight, Where ignorant armies clash by night, But we should take heart and renew our faith. For, after all, this is a moral universe, and right will win in the end. Yet, unless we are prepared to meet force with force, and propose a superior moral and ethical ideal to the materialistic Marxian philosophy of our enemies, the triumph of right may be delayed for generations. As Ernest Bevin recently said, “Free men have never been vanquished by slaves.” So in spite of the pessimistic view of our civilization that predicts its total eclipse, I believe that free men, fol- Jowing Christian morals and ideals, and exercising the power of these forces, backed up by the necessary physical force can and will preserve our western civilization, and our free way of life. But we cannot dilly-dally. This is the hour. We must act. The SPEAKER. Under previous order of the House, the gentleman from Texas (Mr. Parman] is recognized. SMALL BUSINESS DEFENSE PLANTS ACT OF 1950 Mr, PATMAN. Mr. Speaker, today I have introduced in the House a bill (H. R. 9243) to create the Small Defense JULY 26 Plants Corporation and to preserve small-business institutions and free, competitive enterprise. The distin- guished Senator from Alabama [Mr. SparkMAN) has introduced an identical bill in the Senate. As you know, Sena- tor SPARKMAN is the chairman of the Small Business Committee of the Senate, while I have the honor of being the chairman of the Small Business Com- mittee of the House. Senator SPARKMAN and I have issued a joint statement which, in our opinion, sets forth compelling reasons for intro- ducing at this time legislation which will, when it becomes law, provide an instru- ment to effectively mobilize the economic resources of the small-business institu- tions of our country in the defense effort. Senator SPARKMAN Will place in the Rec- orp our joint statement on the Small Business Defense Plants Act of 1950, and I sincerely hope that Members of the House will find an opportunity to read it. For the further information of the membership, I shall ask umanimous con- sent to include in my remarks a copy of the bill which is to be cited as the “Small Business Defense Plants Act of 1950," together with a summary and analysis of the bill and a comparison with the 1942 act creating the Smaller War Plants Corporation. The Smaller War Plants Corporation, which I had the privilege of being joint author, created by the Congress in 1942, was a welcome addition to the war effort in World War II, but its passage came late. It did not come during the period of preparation when we were mobiliz- ing our economic and industrial re- sources The present proposal for a Small Defense Plants Corporation is needed to supplement and coordinate the small-business segment of our econ- omy with the Defense Production Act of 1950 now under consideration by the Committees on Banging and Currency of the Senate and the House of Repre- sentatives. The proposal of Senator SparRKMAN and myself to create a Small Defense Plants Corporation is wholly in keeping with objectives of the Defense Produc- tion Act of 1950 and with the President's message to the Congress transmitting a report on the situation in Korea— Document No. 646. The Defense Pro- duction Act states: It is the sense of the Congress that small- business enterprises be encouraged to make the greatest possible contribution toward achieving the objectives of this act. In order to carry out the policy Bo enunciated, we must have affirmative and positive legislation. The Small Business Defense Plants Act of 1950 pro- vides means for carrying out congres- sional policy in regard to small business in an affirmative and positive manner, Iam confident that Senators and Rep- resentatives will join with Senator SparKMAN and myself in enacting this legislation into law. We cannot afford to take a chance, Small business must be provided with an effective instrument which will insure participation in our defense effort, Small business’ contribu- tion to our economy in times of stress has been magnificent. We need small
1950 business in the present defense effort more than ever before, and we need that effort now. Therefore, any plan of mobilization of economic and industrial resources which does not utilize the capacities and skills of small business is incomplete, negli- gent, and dangerous. Decentralization and diversification must be based on small-business participation and, there- fore, must be made while we have the choice, The matters above referred to follow: [H R 9243, 81st Cong, 2d sess.] A bill to create the Small Defense Plants Corporation and to preserve small-business institutions and 1tree, competitive enter- prise Be tt enacted, etc, That this act may be cited as the “Small Business Defense Plants Act of 1950" Src 2 (a) One of the corporations created under the Defense Production Act of 1950 shall be @ body corporate under the name “Small Defense Plants Corporation” (heres inafter referred to as the “Corporation”), which Corporation shall be under the gen- eral direction and supervision of the Presi- dent. The principal office of the Corporation shall be located in the District of Columbia, but the Corporation may establish such branch offices in other places in the United States as may be determined by the board of directors. (b) he Corporation is authorized to ob- tain money from the Treasury of the United States, for use in the performance of the powers and duties granted to or imposed upon it by law, not to exceed a total of $500,- 000,000 outstanding at any one time. For this purpose appropriations not to exceed 500,000,000 are hereby authorized to be made to a revolving fund in the Treasury, Ad- vances shall be made to the Corporation from the revolving fund when requested by the Corporation. (c) The management of the Corporation shall be vested in a board of five directors, who shall be appointed by the President, by and with the advice and consent of the Sen- ate, and two of whom shall have been en- gaged exclusively in private small-business enterprise, in industry or commerce, for at least 10 years. One such director shall be chosen from the ranks of labor, one from the ranks of farmers, and one from the public at large. The President shall desig- nate one of the board members to act as chairman and administrative head of the Corporation. Each member of the board shall receive compensation at the rate of $15,000 per annum, except that the chair- man shall receive compensation at the rate of $17,500 per annum. (a) The Corporation shall not have suc- cession, beyond June 30, 1952, except for pur- poses of liquidation, unless its life is ex- tended beyond such date pursuant to an act of Congress. It shall have power to adopt, alter, and use a corporate seal, which shall be judictally noticed, to make contracts; to lease such real estate as may be necessary for the transaction of its business; to sue and be sued, to complain and to defend, in any court of competent jurisdiction, State or Federal; to select and employ such officers, employees, attorneys, and agents as shall be necessary for the transaction of business of the Corporation; to define their authority and duties, require bonds of them, and fix the penalties thereof, and to prescribe, amend, and repeal, by its board of directors, bylaws, rules, and regulations governing the manner in which its general business may be conducted and the powers granted to it by law may be exercised and enjoyed. The board of directors of the Corporation shall determine and prescribe the manner in which its obligations shall be incurred and its ex- CONGRESSIONAL RECORD—HOUSE ponses allowed and paid. The Corporation shall be entitled to the free use of the United States mails in the same manner as the exec utive departments of the Government. The Corporation, with the consent of any board, commission, independent establishment, or executive department of the Government, in- cluding any fleld service thereof, may avail itself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this act, (e) All moneys of the Corporation not otherwise employed may be deposited with the Treasurer of the United States subject to check by authority of the Corporation or dn any Federal Reserve bank. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Corporation in the general performance of its powers conferred by this act All insured banks, when designated by the Secretary of the Treasury, shall act as depositaries, custodians, and financial agents for the Corporation. Sec. 3. (a) The Corporation is empowered— (1) to make loans or advances, on such terms and conditions and with such ma- turities as it may determine, to enable small- business concerns to finance plant construc- tion, conversion, or expansion, including the acquisition of land, or to finance the acquisi- tion of equipment, facilities, machinery, sup- plies, or materials, or to supply such con- cerns with capital, to be used in the manu- facture of articles, equipment, supplies, or materials for defense or essential civilian purposes; and such loans or advances may be made or effected either directly or in co- operation with banks or other lending insti- tutions through agreements to participate or by the purchase of participations, or otherwise, (2) to purchase or lease such land, to pur- chase, lease, butld, or expand such plants, and to purchase or produce such equipment, facilities, machinery, materials, or supplies, as may be needed to enable the Corporation to provide small-business concerns with such land, plants, equipment, facilities, machin- ery, materials, or supplies as such concerns may require to engage in the production of such articles, equipment, supplies, or ma-« terials; (8) to lease, sell, or otherwise dispose of to any small-business concern any such land, plants, equipment, facilities, machinery, materials, or supplies; (4) to enter into contracts with the United States Government and any department, agency, or officer thereof having procurement powers obligating the Corporation to fur- nish articles, equipment, supplies, or ma- terials to the Government; and (5) to arrange for the performance of such contracts by letting subcontracts to small- business concerns or others for the manu- facture, supply, or assembly of such articles, equipment, supplies, or materials, or parts thereof, or servicing or processing in con- nection therewith, or such management serv- ices as may be necessary to enable the Cor- poration to perform such contracts. (b) In any case in which the Corporation certifies to any officer of the Government having procurement powers, that the Cor- poration is competent to perform any spe- cific Government procurement contract to be let by any such officer, it shall be the duty of such officer to let such procurement con- tract to such Corporation upon such terms and conditions as may be specified by the Corporation, Such subcontracts may be let upon such terms and conditions as the Cor- poration may deem appropriate in accordance with such regulations as may be prescribed under section 201 of the First War Powers Act, 1941. Bre. 4. (a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant 11163 any loan, or extension thereof by renewal, deferment of action, or otherwise, or the ac- ceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining money, prop- erty, or anything of value, under this act, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than 2 years, or both. (b) Whoever, being connected in any ca- pacity with the Corporation, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with in« tent to defraud the Corporation or any other body polttic or corporate, or any individual, or to deceive any offcer, auditor, or exam- iner of the Corporation, makes any false entry in any book, report, or statement of or to the Corporation, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of ex- change, mortgage, judgment, or decree there- of, or (3) with intent to defraud partict- pates, shares, receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Corporation, or (4) gives any unauthorized information concerning any future action or plan of the Corporation which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assist- ance from the Corporation, shall be punish- ed by a fine of not more than 810,000 or by imprisonment for not more than 6 years, or both (c) The provisions of sections 202, 216, 281, 431, 432, and 433 of title 18 of the United States Code, insofar as applicable, are ex- tended to apply to contracts or agreements with the Corporation under this act, Sec. 5 Whenever the Corporation has completed any transaction under clause (1), (2), or (3) of section 3 (a) of this act, it may transfer the loan, advance, plant, equipment, Tacilities, machinery, materials, supplies, Jeases, or other property resulting from such transaction to the Reconstruction Finance Corporation, and the Reconstruction Finance Corporation shall service and administer such loan, advance, or property, as the agent of the Corporation, remitting to it any in- terest, principal, or other proceeds or col- lections, after deducting actual expense of service and administration, Sec 6. (a) It shall be the duty of the Corporation, and 1t is hereby empowered, to coordinate and to determine the means by which the productive capacity of small-busi- ness concerns can be most effectively uti- lized for national defense and essential ci- villian production, (b) It shall be the duty of the Corporation, and it is hereby empowered, to consult and cooperate with appropriate governmental agencies in the issuance of all orders limit- ing production by business enterprises, in order that small-business concerns will be most effectively utilized in the production of articles, equipment, supplies, and materials for national defense and essential civilian purposes. (c) It shall be the duty of all governmental agencies, in the issuance of all orders limit- ing production by business enterprises, to consult and cooperate with the Corporation in order that small-business concerns will be most effectively utilized in the production of articles, equipment, supplies, and ma- terials for national defense and essential civilian purposes. Src. 7. The Corporation shall have power, and it is hereby directed, whenever it deter= mineg such action is necessary.
11164 (1) to make a complete inventory of all productive facilities of small-business con- cerns which can be used for defense and essential civilian production or to arrange for such inventory to be made by any other gov- ernmental agency which has the facilities; (2) to consult and cooperate with officers of the Government having procurement pow- ers, in order to utilize the potential produc- tive capacity of plants operated by small- business concerns; (3) to obtain detailed information as to the methods and terms which Government prime contractors utilize in letting subcon~ tracts and to take action to insure the let- ting of subcontracts by prime contractors to small-busines. concerns at prices and on con- ditions and terms which are fair and equitable; (4) to take such action tn the letting of Government procurement contracts as 1s necessary to provide small-business concerns with an adequate incentive to engage in de- fense and essential civilian production and to facilitate the conversion and the equip- ping of plants of small-business concerns for such production; (5) to certify to the Reconstruction Fi- nance Corporation, or any of its subsidiaries, the amount of funds required to convert to defense production any plant of a small- business concern interested in obtaining from the Reconstruction Finance Corpora- tion, or any of its subsidiaries, the funds necessary to provide for such conversion; (6) to determine within any industry the concerns, firms, persons, corporations, part- nerships, cooperatives, or other business en- terprises, which are to be designated “small- business concerns” for the purpose of el- fectuating the provisions of this act; (7) to certify to Government procurement officers with respect to the competency, as to capacity and credit, of any small-business concern or group of such concerns to per- form a specific Government procurement contract; (8) to obtain from any Federal department, establishment, or agency engaged in dcfense procurement or in the financing of defense procurement or production such reports con- cerning the letting of contracts and sub- contracts and making of loans to business concerns as it may deem pertinent in carry- ing out its functions under this act; and (9) to obtatn from suppliers of materials information pertaining to the method of filling orders and the bases for allocating their supply whenever it appears that any small business ia unable to obtain materials for defense or essential civilian production from its normal sources. (10) to make studies and recommendations to the appropriate Federal agencies to in- Bure a fair and equitable share of materials, gupplies, and equipment to small-business concerns to effectuate the defense program or for essential civilian purposes, (11) to consult and cooperate with all Gov- ernment agencies for the purpose of insur- ing that small-business concerns shal] receive fair and reasonable treatment from said agencies. Src. 8. (a) In any case in which a small- business concern or group of such concerns has been certified by or under the authority of the Corporation to be a competent Govern- ment contractor with respect to capacity and credit as to a specific Government procure- ment contract, the officers of the Govern- ment having procurement powers are di- rected to accept stich certification as con- clusive, and are authorized to let such Gov- ernment procurement contract to such con- cern or group of concerns without requiring it to meet any other requirements with re- spect to capacity and credit. (b) The Congress has as its policy that a fair proportion of the total purchases and contracts for supplies and services for the Government shall be placed with small- business concerns. To effectuate such policy, CONGRESSIONAL RECORD—HOUSE small-business concerns within the mean- ing of this act shall receive any award or contract or any part thereof if it is deter- mined by the Corporation and the con- tracting procurement agencies (1) to be in the interest of mobilizing the Nation’s full productive capacity, or (2) to be in the interest of the national defense program. Src. 9. The Corporation shall make a re- port every 60 days of operations under this act to the President, the President of the Senate, and the Speaker of the House of Representatives. Such report shall include the names of the business concerns to whom contracts are let, and for whom financing is arranged, by the Corporation, together with the amounts involved, and such report shall include such other information, and such comments and recommendations, with respect to the relation of small-business concerns to the defense effort, as the Cor- poration may deem appropriate. Sec. 10. The Attorney General is directed to make, or request the Federal Trade Com- mission to make, surveys for the purpose of determining any factors which may tend to eliminate competition, create or strength- en monopolies, injure small business, or oth- erwise promote undue concentration of eco- nomic power in the defense program. The Attorney General shall submit to the Con- gress within 90 days after the approval of this act, and at such times thereafter as he deems desirable, reports setting forth the results of such surveys and including recom- mendations for such legislation as he may deem necessary or desirable. Sec. 11. Section 101 of the Government Corporations Control Act is amended by tn- serting immediately after “Commodity Credit Corporations;” the following: “Small Defense Plants Corporation;”’. SuMMARY AND ANALYSIS OF THE SMALL Derenss PLants Act or 1950 This bill provides for the creation of a Small Defense Plants Corporation, similar to the Smaller War Plants Corporation of World Wear Il. It is designed to meet national de- fense and civilian needs. The proposed Cor- poration will have the authority to make jJoans and provide credit for small-business concerns. In addition, it will perform certain functions for small business relating to pro- curement and other matters. Section 1: Section 1 cites the act as the “Small Defense Plants Act of 1950.” Section 2 (a): This subsection creates the Small Defense Plants Corporation within the framework of the proposed Defense Pro- duction Act of 1950. The purpose of this pro- vision is to Integrate this legislation with the basic mobilization law—the Defense Produc- tion Act of 1950. Section 2 (b): This subsection provides the Corporation with a revolving fund not to ex- ceed 8500,000,000 for the exercise of its statu- tory functions. Section 2 (c): This subsection authorizes the appointment and provides for the com- position of the Corporation’s Board of Direc- tors. To insure that the Directors will have & genuine understanding and be representa. tive of small business, it is provided that two of their number shall have had 10 years’ expertence in the small-business fileld. La- bor, agriculture, and the general public are also represented. Section 2 (d): This subsection provides that the Corporation shall be in existence until June 80, 1952 (the expiration date of the Defense Production Act of 1950). Section 2 (e): This subsection makes pro- vision as to depositaries for corporate funds. Section 3 (a): This subsection contains the banking powers of the Corporation. ‘These include the power (1) to make loans or advances, on such terms and conditions as it may determine, to finance plant con- struction, converaion, or expansion, or the acquisition of equipment, facilities, ma- chinery, supplies, or materials—for defense JULY 26 or essential civilian purposes; (2) to pur- chase or lease land, plants, equipment, fa- cilities, machinery, materials, or supplies as may be needed to provide small-business concerns with the same for defense or essen- tial civilian production; (3) to lease, sell, or otherwise dispose of to any small-business concern land, plants, equipment, facilities, machinery, matertals, or supplies; (4) to enter into contracts with the United States Government and any procurement agency for the purpose of furnishing articles, equip- ment, supplies, or materials to the Govern- ment; (5) to arrange for the performance of such contracts by letting subcontracts to small-business concerns. Section 3 (b): This subsection enables the Corporation to act as prime contractor with the Government and to sublet awards to small-business concerns acting as sub- contractors. Section 4: This section provides for crimi- nal penalties for false statements and other unlawful conduct in connection with the administration of the act. Section 5: This section provides that Corporation’s loans and advances may be transferred to the Reconstruction Finance Corporation for servicing and administra- tion. Section 6: This section provides that the Corporation shall coordinate and determine, in cooperation with other governmental agencies, the means by which the productive capacity of small-business concerns can be most effectively utilized for national defense and essential civilian production, Section 7: This section empowers the Corporation to integrate small business in the national defense effort by acting (1) to make or arrange for a complete inventory of all productive facilities of small-business concerns which can be used for defense or essential civilian production; (2) to consult and cooperate with procurement officers in order to utilize the potential productive ca- pacity of small-business plants; (3) to take action to insure the letting of subcontracts by prime contractors to small-business con- cerns at prices and on conditions and terms which are fair and equitable; (4) to take such action in the letting of Government pro- curement contracts as ‘s necessary to pro- vide small-business concerns with an ad-- quate incentive to engage in defense and es- sential civilian production; (5) to certify to the Reconstruction Finance Corporation the amount of funds required to convert to de- fense production any plant of a small-busi- ness concern; (6) to determine within any industry the firms which are to be designated “small-business concerns” for the purpose of this act; (7) to certify to a Government offi- cer with respect to the competency, as to ca- pacity and credit, of any small-business con- cern or concerns to perform a specific pro- curement contract; (8) to obtain from any Federal procurement or financing agency re- ports concerning the letting of contracts and subcontracts, or the making Of loans, to small-business concerns; (9) to obtain from suppliers of materials information pertaining to the method of filling orders and the bases for allocating their supply whenever it ap- pears small-business concerns are unable to get materials for defense or essential civilian purposes; (10) to make studies and recom- mendations to appropriate Federal agencies to inaure a fair and equitable share of ma- terials, supplies, and equipment for smaill- business concerns; (11) to consult and coop- erate with all Government agencies for the purpose of insuring that small-business con- cerns shall receive fair and reasonabie treat- ment from such agencies. Section B (a): This subsection provides that certification of a small-business concern by the Corporation as to its competency with respect to capacity and credit shall be con- elusive, Section 8 (b): This subsection effectuates the congressional policy that a fair share of
1950 Government contracts shall be placed with small-business concerns. Any such small- business concern shall receive any award or contract, or any part thereof, if the Corpora- tion and the contracting procurement agen- cies determine such action to be in the in- terest of mobilizing the Nation's full produc. tive capacity in the national-defense pro- gram. Section 9: This section provides that the Corporation shall make a report every 60 days to the President and to the Congress. Section 10: This section directs the Attor- ney General to make or to request the Fed- eral Trade Commission to make surveys to ascertain factors tending to eliminate com- petition and injure small business in con- nection With the defense effort. Section 11: This section provides that the Corporation shall be subject to the provisions of the Government Corporations Control Act. — COMPARISON OF BILL CREATING SMALL DErENs5E Piants Corporation Wire 1942 Acr Creat inc SMALLER Wak PLANTS CORPORATION The sections contained in the present bill are modeled rather closely on sections con- tained in the so-called Small Business Mo- bilization Act of 1942. The 1942 act created the Smaller War Plants Corporation in section 4 thereof, and provided for servicing of its loans by RFC tn section 6. The 1942 act also, in sections 1, 2, 8, and 5, conferred certain amall-business functions on the Chairman of the War Production Board, which for the most part and for all practical purposes came to be exercised in time by the Chairman of the Smaller War Plants Corporation. Thus, the first six sections of the Small Business Mobilization Act of 1942 contain a body of law which has been drawn on, with a few changes and a few supplements, to draft the present bill. The following shows the comparative dis- tribution of sections: Present bill 1942 act Section 1 Section 2 Section 4 (a) to (e) Section 3 Section 4 (f) Section 4 Section ¢ (g) Bection 5 Section 6 Section 6 Section 1 Section 7 Section 2 Section 8 Section 3 Section 9 Section 5 Section 10 Section 11 BECTION BY SECTION COMPARISON Section 1 of bill: This provides that the act may be cited as the “Small Business Defense Plants Act of 1950.” The 1942 act provided for no official name, although it came to be known as the Small Business Mobilization Act. Section 2 (a): This providgs for the crea- tion of the Small Defense Plants Corporation, instead of Smaller War Plants Corporation created by section 4 (a) of the 1942 act. The Corporation is to be created under the Defense Production Act of 1950 1. e., by the President, instead of being created outright, Section 2 (b): This provides for a 6600.- 000,000 revolving fund to finance the new Corporation, Section 4 (b) of the 1942 act provided for capital stock of 150,000,000 later increased to $350,000,000. The revolv- ing-fund method is now preferred to the capital-stock method. Section 2 (c): This provides that the Board of Directors be appointed by the Prest- dent, by and with the advice and consent of the Senate, instead of by the Chairman of the War Production Board, as provided in section 4 (c) of the 1942 act. The only qualification specified in section ¢ (c) of the 1042 act was that the directors be “deemed to be familiar with the problems of small business.” Said section also provided for appointment of the chairman by the board XOVI-——703 CONGRESSIONAL RECORD—HOUSE members. No salarles for directors were specified in the 1942 act, although the sala- ries paid were substantially less than those specified in the present bill. Section 2 (d): This follows almost exactly the wording of section 4 (d) of the 1942 act. There are only two exceptions, First, the new Corporation ts necessarily given a dif- ferent termination date than SWPC. Sec- ondly, the bill substitutes the phrase “select and employ,” in place of ‘“‘select, employ, and fix the compensation of,” as used in the 1942 act. The reason is to make clear that em- ployees must be selected pursuant to the Classification Act and similar controlling legislation. Section 2 (e): This follows the exact word- ing of section 4 (e) of the 1942 act. Section 8 (a) (1): This follows the exact wording of section 4 (f) (1) of the 1942 act, with two exceptions. First, there is the ad- dition of the phrase, “including the acqui- sition of land,” after the phrase, “finance plant construction, conversion, or expan- sion.” This merely adds expressly what is already implicd as is evidenced by the refer- ences to “such land” in sections 4 (f) (2) and 4 (f) (3) of the 1942 act. Secondly, the power is conferred for “defense or essential civilian purposes,” instead of ‘‘war or essen- tial civilian purposes.” Section 8 (a) (2): This follows the exact wording of section 4 (f) (2) of the 1942 act. Section 8 (a) (8), section 8 (a) (4), sec- tion 3 (a) (5): These follow the exact word- ing of section 4 (f) (8), section 4 (f) (4), and section 4 (f) (5) of the 1942 act. Section 3 (b): This follows the exact word- ing of the balance of section 4 (f) of the 1942 act, with two exceptions. First, the certification is to be made, and the terms specified, by the new Corporation, instead of by the Chairman of the War Production Board. Secondly, the certification may be made “to any officer of the Government hav- ing procurement powers,” which has the same meaning, in fewer words, as the 1942 act. Section 4: This follows exactly the wording of section 4 (g) of the 1942 act with two ex- ceptions. First, the section numbering 1s section 4 (a), 4 (b), and 4 (c), respectively, instead of section 4 (g) (1), 4 (8) (2), and 4 (g) (8) in the 1942 act. Secondly, the statutory references to the Criminal Code in section 4 (g) (8) of the 1942 act are changed to the appropriate references to title 18 of the present United States Code. Section 5: This is exactly the same wording as section 6 of the 1942 act with two essential exceptions, Firat, the 1942 act, section 6, provided that the corporation “shall” trans- fer the loan, advance, etc. to another agency to service and administer same, whereas the bill states “may.” Secondly, the servicing agency named in the 1942 act was Defense Plants Corporation, a then subsidiary of Reconstruction Finance Corporation, where- as the servicing agency named in the bill is the Reconstruction Finance Corporation. Section 6 (a): Section 6 (a) of the bill is a modified version of the first paragraph of section 1 of the 1942 act. The duty is assign- ed to the new Corporation, instead of to the Chairman of the War Production Board, act- ing through as deputy appointed by him. The purpose is for “national defense and essential civilian production,” instead of “war pro- auction” mentioned in section 1 of the 1942 act. Bection 6 (b): Section 6 (b) is almost en- tirely the identical wording of the second paragraph of section 1 of the 1942 act. Again, however, the duty is imposed on the new Corporation, instead of the Chairman of the War Production Board, and again it is re- lated to “national defense and essential civil- jan. purposes,” with no reference to “war” production. Section 7: Section 7 of the bill follows closely section 2 of the 1042 act. There are 11165 two main exceptions. First, the power is as- signed to the new Corporation, instead of the Chairman of the War Production Board. Secondly, the purposes are not stated to be for “war” production, as specified in section 2 of the 1942 act, but for defense and essen- tial civilian production. Other differences in the subsections may be noted as follows: Section 7 (1): This is patterned on section 2 (1) of the 1942 act. However, the inventory study authorized is limited to small-busi- ness firms, whereas the 1042 act has no such Umitation. Section 7 (2): This is patterned on section 2 (2) of the 1942 act. However, the power conferred ts “to consult and cooperate with,” instead of “to direct the attention of” pro- cufement officers, as provided for in the 1942 act. Section 7 (3): This is patterned on section 2 (3) of the 1942 act, in regard to procuring information as to the extent of subcontract- ing to small concerns by prime contractors. However, the language is somewhat tighter than the 1942 act. Section 7 (4): This is patterned on sec- tion 2 (4) of the 1942 act. The language, however, is tightened somewhat. Section 7 (5): This is almost the exact wording of section 2 (5) of the 1942 act. The only exception is to eliminate the Corpora- tion itself as one of the agencies to which a certification can be directed—inasmuch as the Corporation under the bill makes the cer- tiication. Section 7 (6): This is a new provision ex- pressly authorizing the new Corporation to determine in each industry which enterprises are to be designated ‘small-business con- cerns.” SWPC, under the 1942 act, made such determinations without express au- thorization. Section 7 (7): This is the exact wording of section 2 (6) of the 1942 act, Section 7 (8): This is virtually the same wording as section 2 (7) of the 1942 act. Section 7 (9): This is a new provision au- thorizing the obtaining of allocation infor- mation from suppliers themselves whenever it appears that small-business concerns are unable to obtain materials. Section 7 (10): This is patterned on the first part of section 2 (8) of the 1942 act. However, it goes further than authorizing atudies, and provides for the making of rec- ommendations to Federal agencies—to in- sure a fair and equitable share of supplies to small-business concerns. Section 7 (11): This is patterned on the second part of section 2 (8) of the 1942 act, in regard to insuring that small-business concerns receive fair and equitable treat- ment from Government agencies. Section 8 (a): This is virtually the same aa the first sentence of section 3 of the 1942 act. Again, the power is given by the bill to the Corporation, instead of the Chairman of the War Production Board. The second sen- tence of section 3 of the 1942 act is omitted in this bill. Section 8 (b): This is a new provision ef- fectuating congressional policy that small business receive a fair share of all Govern- ment procurement. It expresses congres- sional policy in Janguage which is positive and affirmative rather than in the negative language of the 1942 act. Small business shall receive contracts if determination is made jointly by the Corporation and the procuring agency that it is in the interest of mobilizing the Nation's full productive ca-~ pacity in the national defense program. Section 9: This is the exact wording of section & of the 1942 act except that the re- port of operations under the act is made by the Corporation, instead of by the Chairman of the War Production Board. Section 10: This ia a new provision, not contatned in the 1942 act, in reference to the antitrust laws.
11166 Section 11: This also is a new provision placing the Corporation under the Govern- ment Corporation Control Act. LEAVE OF ABCENCE By unanimous consent leave of ab- sence was granted to Mr. ANpERSoN of California (at the request of Mr. Mar- gin of Massachusetts) indefinitely on account of iliness. EXTENSION OF REMARKS Mr. DURHAM asked and was given permission to revise and extend his re- marks and include certain extraneous matter. Mr. SADOWSKI (at the request of Mr. Priest) was given permission to ex- tend his remarks in three instances, in each to include extraneous matter. Mr. HAYS of Arkansas (at the re- quest of Mr, Priest) was given permis- sion to extend his remarks and include extraneous matter. Mr. WOLVERTON asked and was given permission to extend his remarks in threc Instances; in two to include ex- trancous matter. Mr, HESELTON asked and was given permission to extend his remarks in two instances, in each to include extrane- ous material, Mr. VAN ZANDT asked and was given permission to extend his remaiks and include extraneous matter. Mr. BOYKIN (at the request of Mr, Karsten) was given permission to ex- tend his remarks and include extrane- ous matter. Mr. JACKSON of Washington (at the request of Mr. BONNER) was given per- mission to extend his remarks in two instances. ADJOURNMENT Mr. LANHAM. Mr. Speaker, I move that the House do now adjourn, The motion was agreed to; accord- ingly (at 5 o’clock and 6 minutes p. m.) the House adjourned until tomorrow, Thursday, July 27, 1950, at 12 o’clock noon. EXECUTIVE COMMUNICATIONS, ETC. Under clause 2 of rule XXIV, executive communications were taken from the Spaker's table and referred as follows: 1591. A communication from the President of the United States, transmitting supple- mental estimates of appropriation for the fiscal year 1951 in the amount of $45,999,000 for the Post Office Department (H. Doc. No, 659); to the Committee on Appropriations and ordered to be printed 1582 A communication from the President of the United States, transmitting a suppie- mental estimate of appropriation for the fiscal year 1951 in the amount of $36,000,000 for the General Services Administration (H, Doc No. 669); to the Committee on Appro- priations and ordered to be printed. 1593. A communication from the President of the United States, transmitting a supple- mental estimate of appropriation for the fiscal year 1951 in the amount of $86,000 for the Department of the Interior (H. Doc No. 661); to the Committee on Appropriations and ordered to be printed. REPORTS OF COMMITTEES ON PUBLIO BILLS AND RESOLUTIONS Under clause 2 of rule XIII, reports of committees were delivered to the Clerk CONGRESSIONAL RECORD—SENATE for printing and reference to the proper calendar, as follows: Mr. CELLER: Committee on the Judiciary, House Joint Resolution 510. Joint resolue tion to exempt certain counsel employed by committee from certain Federal laws under Special Committee on Campaign Expendt- tures, 1950; without amendment (Rept. No. 2743). Referred to the House Calendar. Mr. PRIEST: Committee of conference, 8 2160. An act to amend the Public Health Service Act to authorize annual and sick leave with pay for commissioned officers of the Public Health Service, to authorize the payment of accumulated and accrued annual leave in excess of 60 days, and for other pur- poses; without amendment (Rept. No. 2744). Ordered to be printed Mr. HOBBS. Committee on the Judiciary. 5. 18388 An act to amend title 28 of the United States Codo relating to fees of United States marshals; with amendment (Rept. No, 2745). Referred tao the Committee of the Whole House on the State of the Union. Mr HOBBS: Committee on the Judiciary. H. R 9171. A bill to provide for the tem- porary appointment of referees in bank upt- cy, and for other purposes; with amendment (Rept. No. 2748). Referred to the Commit- tee of the Whole House on the Stato of the Union Mr DAWSON: Committee on Expenditures in the Executive Departments. H. R. 9129. A bill to amend the Federal Property and Administrative Services Act of 1949, and for othe: purposes, with amendment (Rept No. 2747) Referred to the Committee of the Whole House on the State of the Union. PUBLIC BILLS AND RESOLUTIONS Under clause 3 of rule XXII public bills and resolutions were introduccd and severally referred as follows: By Mr PATMAN: H R 9243 A bill to create the Small De- fense Plants Corporation and to preserve small-business institutions and free, compet- itive enterprise; to the Committee on Bank- ing and Currency. By Mr. ASPINALL: H R 9244 A bill to amend the authority given the Secretary of the Interlor by the act of June 25, 1947, to construct the Paonia reclamation project, Colorado, and for other purposes, to the Committee on Public Lands, By Mr. SCRIVNER: H.R. 9245 A bill to eliminate compensa- tion of members of the Armed Forces of the United States from taxable income, and for other purposes; to the Committee on Ways and Means. By Mr VINSON H R, 9246 A bill to provide for the rene- gotiation of contracts, and for other pur- poses; to the Committee on Ways and Means. By Mr. BAILEY: H R. 9247. A bill to provide for the ad- mission of Puerto Rico into the Union; to the Committee on Public Lands. By Mr. BOGGS of Delaware: H R. 9248. A bill to grant income-tax ex- emptions with respect to compensation re< ceived for active service in the Armed Forces; to the Committee on Ways and Means. By Mr. MULTER: H R. 9249. A bill to amend section 402 (a) of the National Housing Act to change the name of the Federal Savings and Loan Insurance Corporation; to the Committee on Banking and Currency. By Mr. LANHAM: H R.9250. A bill to authorize United States participation in the creation and maintenance of a United Nations armed police force to prevent and remove threats to the peace and to suppress acts of aggres- sion and other breaches of the peace, and JULY 27 for other purposes; to the Committee on Foreign Affairs. By Mr. SMITH of Virginia: H.R.9251. A bill to fix the responsibilities of the Disbursing Officer and of the Auditor of the District of Columbia, and for other purposes; to the Committee on the District of Columbia, By Mr. KUNKEL: H R.9252. A bill to protect the national safety and security from the consequences of price and credit inflation, and for other purposes; to the Committee on Banking and Currency. By Mr. DAVENPORT: H. Res. 736. Resv.ution creating a select committee to conduct an investigation and study of recent increases in the price of food and other commodities; to the Come mittee on Rules. PRIVATE BILLS AND RESOLUTIONS Under clause 1 of rule XXII, private bills and resolutions were introduced and severally referred as follows: By Mr. DAVIES of New York: H R.9263. A bill for the relief of Jacob Lurie, to the Committee on the Judiciary. By Mr. HEFFERNAN: H R 9254. A bill for the relief of Mrs. Haruko Watanabe Bruntel and Kenncth Michael Bruntel, to the Committee on the Judiciary, By Mr MITCHELL’ H R 9255 A bill for the relief of Jose- phine F Garrett; to the Committee on the Judiciary By Mr PRICE: H R 9256, A bill for the relief of Miyako Matsuda; to the Committee on the Judiciary. By Mr REES: H R 9257 A bill for the rellef of Betty Minoru Kawachi, to the Committee on the Judiciary. By Mr SADLAK: H R.9258 A bill for the relief of Stanley Trela; to the Committee on the Judiciary, SENATE Tuurspay, JuLy 27, 1950 (Legislatwe day of Thursday, July 20, 1950) The Senate met at 12 o’clock meridian, on the expiration of the recess. The Chaplain, Rev. Frederick Brown Harris, D. D., offered the following prayer: Our Father God, Thou hast so formed our being that all the highways of our hearts lead to Thy face and our deepest cravings are satisfied only in Thee. Turning aside for this hallowed moment from the violence and turbulence of hu- man strife, we would hush both the words of the wise and the prattle of the foolish, Strengthen us with Thy might that we may bear our full part in the decisive struggle that has shadowed these days, Facing, now, unfinished tasks calling for courage and sacrifice and wisdom, upon the President of the United States, the Vice President, the Congress, and all pubHe servants who, sharing the heavy load of these epochal days, shape our policy and guide our destiny, pour in double measure Thy enabling grace. Make our bodies Thy temple and our
1950 hearts Thine altar where the sacred fire ever burns. We ask it in the Redeemer's name, Amen, THE JOURNAL On request of Mr. McFartanp, and by unanimous consent, the reading of the Journal of the proceedings of Wednes- day, July 26, 1950, was dispensed with. MESSAGES FROM THE PRESIDENT Messages in writing from the Presi- dent of the United States submitting nominations were communicated to the Senate by Mr. Miller, one of his secre- taries. MESSAGE FROM THE HOUSE A message from the House of Repre- sentatives, by Mr. Maurer, one of its reading clerks, announced that the House had passed the bill (8. 3520) to strengthen the common defense by pro- viding for continuation and expansion of Western Hemisphere production of abac& by the United States, with an amendment, in which it requested the concurrence of the Senate. The message also announced that the House had passed the following bills and joint resolution, in which it requested the concurrence of the Senate: H R 7447. An act to amend the Tariff Act of 1930, as amended, with respect to sound- recording materials for use in connection with moving-picture exhibits and news reels; H.R. 8514. An act to amend the Tariff Act of 1980 to pri vide for exemption from duty of certain sound recordings imported by the Department of State, and for other purposes; H. R. 8726. An act to amend the Tariff Act of 1980 to exempt from duty sound record- ings for news broadcasts; H.R. 9038. An act to authorize the Presi- dent to determine the form of the national budget and of departmental estimates, to modernize and simplify governmental dc- counting and auditing methods and pro- cedures, and for other purposes; and H. J. Res. 497. Joint resolution excluding from gross estate of a nonresident alien works of art on loan to the Trustees of the National Gallery of Art. LEAVES OF ABSENCE On request of Mr. WHerry, and by unanimous consent, Mr. TOBEY was ex- cused from attendance on the sessions of the Senate today and tomorrow. On his own request, and by unanimous consent, Mr. JENNER was excused from attendance on the sessions of the Senate from Monday through Friday of next week. On his own request, and by unanimous consent, Mr. KNOWLAND was excused from attendance on the sessions of the Senate for the remainder of the week after 3 o’clock today. On request of Mr. Henpricxson, and by unanimous consent, Mr. Darsy was excused from attendance on the sessions of the Senate for the remainder of this week and through Wednesday of next week, CALL OF THE ROLL Mr. McFARLAND,, I suggest the ab- sence of a quorum. The VICE PRESIDENT. The Setre- tary will call the roll, CONGRESSIONAL RECORD—SENATE The roll was called, and the following Senators answered to their names: Benton Hendrickson Magnuson Brewster Hickenlooper Malone Bricker Hill Martin Bridges Hoey Maybank Butler Holland Mundt Byrd Humphrey Murray Capehart Hunt Myers Chapman Ives Neely Chavez Jenner O’Conor Connally Johnson, Colo, O'Mahoney Cordon Johnson, Tex Pepper Darby Johnston, 8.C, Roberteon Donnell Kefauver Russell Douglas Kem Saltonstall Dworshak Kilgore Smith, Maine Eastland Knowland Smith, N. J. Ecton Langer Sparkman Ellender Leahy Stennis Ferguson Lehman Taft Flanders Lodge Thomas, Okla. Frear Lucas Thye George McCarran Tydings Gillette McCarthy Watkins Graham McClellan Wherry Green McFarland Wiley Gurney McKellar Williams Hayden McMahon Young Mr. MYERS. I announce that the Senator from New Mexico [Mr. ANDER- son], the Senator from Arkansas [Mr. FusricHt], and the Senator from Okla. homa [Mr. Kerr] are absent on public business. The Senator from California [Mr. Downey is necessarily absent. The Senator from Louisiana [Mr, Lone], the Senator from Idaho [Mr. Taytor], the Senator from Utah [Mr. Txomas], and the Senator from Ken- tucky [Mr. Wiriers] are absent by leave of the Senate. Mr. SALTONSTALL. I announce that the Senator from Vermont {Mr. AIKEN], the Senator from Washington {Mr. Carn], the Senator from Colorado (Mr. Mitirxrn], the Senator from Kan- sas (Mr. ScHoEpre.], the Senator from New Hampshire [Mr. Tosey], and the Senator from Michigan [Mr. Vanpen- BERG] are absent by leave of the Senate. The Senator from Oregon (Mr. Morse] is necessarily absent. The VICE PRESIDENT. A quorum is present. The Chair lays before the Senate the unfinished business which will be stated. The LEGISLATIVE CLerK. A bill (H.R. 7786) making appropriations for the support of the Government for the fiscal year ending June 30, 1951, and for other purposes, TRANSACTION OF ROUTINE BUSINESS Mr. McFARLAND. Mr. President, I ask unanimous consent that Senators be permitted to present petitions and me- morials, introduce bills and joint resolu- tions, and submit routine matters for the Recorp, without debate and without speeches. The VICE PRESIDENT. Without objection, it is so ordered. EXECUTIVE COMMUNICATIONS, ETC. The VICE PRESIDENT laid before the Senate the following letters, which were referred as indicated: Report on Torr Crauss Paty BY DerarTMent OF THE AaMY A letter from the Secretary of the Army transmitting, pursuant to law, a report on tort claims by the Department of the Army, fiscal year 1960 (with an accompanying re- port); to the Committee on the Judiciary. 11167 SUSPENSION oy DxrorTaTION OF ALIENS A letter from the Acting Attorney General, transmitting, pursuant to law, copies of the orders of the Commissioner of the Immigra- tion and Naturalization Service, suspending deportation of certain aliens, together with a statement of the facts and pertinent pro- visions of law and the reasons for ordering such suspension (with accompanying pa- pers); to the Committee on the Judiciary. PETITIONS Petitions were laid before the Senate, or presented, and referred as indicated: By the VICE PRESIDENT: A resolution adopted by the Chamber of Commerce of Kauai, T. H., favoring the en- actment of legislation providing statehood for Hawaii; ordered to lie on the table. A resolution adopted at the 1950 midsum- mer feis of the American League for an Un- divided Ireland, Los Angeles, Calif., favoring the abolition of the present border to unify the country of Ireland; to the Committee on Foreign Relations. By Mr. MAGNUSON: A joint resolution of the Legislature of the State of Washington; to the Committee on Public Works; “House Joint Memorial 3 “To the Honorable Harry S. Truman, Prest- dent of the United States of America, and to the Honorable Senate and House of Representatives of the United States in Congress Assembled: “We, your memorialists, the Senate and the House of Representatives of the State of Washington in legislative session assembled, most respectfully represent and petition as follows. “Whereas the war emergency has placed an undue amount of wear and burden upon the highways of the State of Washington be- cause of the movement of army matériel and equipment; and “Whereas Fort Lewis and other military reservations and airfields are situated in the State of Washington; and “Whereas Fort Lewis is so situated that the movement of matériel and equipment to and from Fort Lewis results in an especially heavy amount of wear and strain upon the highways of the State of Washington; and ‘Whereas much of such movement is in the form of excess weights Over and beyond the legal weights established by law and have caused, are causing, and will continue to cause an undue amount of damage to the highway of the State of Washington; and “Whereas the United States Government has in the past recognized such excess use and deterioration of the highways by making suitable allowances to compensate the State of Washington for such use and deterioration; “Now, therefore, your memorialists re- spectfully pray that the Congress of the United States speedily take appropriate ac- tion to recompense the State of Washington for such wear and deterioration of ite high- ways; and be it “Resolved, That copies of this memorial be immediately transmitted to the Honorable Harry 8. Truman, President of the United States, the Secretary of the United States Senate, the Clerk of the United States House of Representatives, and to each Member of Congreas from the State of Washington. “Passed the house July 20, 1950. “Cas. W. Honpr, “Speaker of the House, “Passed the senate July 21, 1950. “Victron A. MEYERS, “President of the Senate.” A resolution of the House of Representa- tives of the State of Washington; to the Com- mittee on Foreign Relations: “We, the House of Representatives of the Btate of Washington, in legislative session
11168 assembled, most respectfully represent as fol- lows: “Whereas the recent action of the Governe ment of North Korea in making an unpro- voked atteck upon the Republic of South Korea has shocked the conscience of the peo- ples in all the freedom-loving nations of the world; and “Whereas such attack is against the thought and action of the United Nations; and “Whereas the United Nations has whole- heartedly condemned such action, and “Whereas it was entirely proper that aid be given to the Republic of South Korea in resisting the invading forces; and “Whereas the President of the United States has taken the lead in resisting such invasion by force and arms and military might: Now, therefore, be it “Resolved, That we, the House of Repre- sentatives of the State of Washington, in legislative session assembled, do hereby an- nounce and declare that we approve the ac- tion which the President has taken in send- ing military aid to the defense of the Republic of South Korea; and be it further “Resolved, That copies of this memorial be sent to the Honorable Harry S Truman, President of the United States and to each Member of Congress from the State of Wash- ington.” MAIL DELIVERIES—RESOLUTION OF THE EASTERN LABOR PRESS CONFERENCE Mr LANGER. Mr. President, I pre- sent for appropriate reference and ask unanimous consent to have printed in the Recon a resolution adopted by the Eastern Labor Press Conference dealing with the matter of mail deliveries. There being no objection, the resolu- tion was referred to the Committee on Post Office and Civil Service, and ordered to be printed in the Recorp, as follows: The following resolution was adopted unanimously by the ninth annual session of the Eastern Labor Press Conference in Wash- ington, D C, June 10, 1950° “Whereas the recent Post Office regulations which curtail the operations of the Post Office Department to a drastic degree have affected delivery of the labor press along with all other mail; and “Whereas the personnel of the Post Office Department is suffering from this curtall- ment in service through layoffs and excessive duties: Therefore be it “Resolved, That the Eastern Labor Press Conference in annual meeting goes on record in opposition to the unjustified cut in the Post Office Department personnel, with its consequent delay and curtailment in the handling of the labor press publications; and be it further “Resolved, That the Postmaster General and the chairmen of the Senate and House Committees on Post Office and Civil Service be urged to reconsider the unjustified re- sults of this method of attempting to saddle the employees, and the public, with the costs of carrying on the Post Office services.” Report of committee: The committee feels that this resolution is of outstanding im- portance. Curtailment of the postal service places on the devoted employees of the Post Office Department an unjust burden entire- ly unworthy of our Federal Government as au enlightened employer. In addition, the curtaliment of the postal service is highly injurious to the labor press and to the public and to the national economy as a whole. Ruts Taxxor, Secretary. CONGRESSIONAL RECORD—SENATE REPORTS OF COMMITTEES The following reports of committees were submitted: By Mr. GEORGE, from the Committee on Finance H R 8845. A bill to provide for the con- veyance of a tract of land in Kennebec County, Maine, to the town of Chelsea; without amendment (Rept. No. 2170), H.R 9120 A bill to amend section 3822 (b) (8) of the Internal Revenue Code, with- out amendment (Rept. No. 2171); H J Res. 469. Joint resolution to permit articles imported from foreign countries for the purpose of exhibition at the Mid-Cen- tury International Exposition, Inc, New Or- leans, La., to be admitted without payment of tariff, and for other purposes; without amendment (Rept. No 2172); and H. J. Res 496. Joint resolution to permit articles imported from foreign countries for the purpose of exhibition at the Interna- tional Food Exposition, Inc, Chicago, Ill, to be admitted without payment of tariff, and for other purposes; withcut amendment (Rept No 2173) By Mr. HUMPHREY, from the Committee on Post Office and Civil Service: 8.2827. A till for the relief of Edmon Benen with an amendment (Rept. No. 177), 8 3654 A bill to amend section 3 of the Postal Salary Act ot July 6, 1945; without amendment (Rept, No. 2178), and H R 8767 A bill to authorize the exclu- sion from the mails of oll obscene, lewd, les- civious, indecent, fithy, or vile articles, mat- ters, things, devices, or substances, and for other purposes, without amendment (Rept. No 2179) INCREASE IN LIMIT OF EXPENDITURES BY COMMITTEE ON RULES AND AD- MINISTRATION Mr. HAYDEN. Mr. President, I have five resolutions unanimously ordered re- ported by the Committee on Rules and Administration which I hope will be adopted by unanimous consent. From the Committee on Rules and Administration I report favorably, with- out amendment, Senate Resolution 311, and I submit a report (No 2175) thereon. I ask unanimous consent for its present consideration The VICE PRESIDENT. Is there ob- jection? Mr. WHERRY. Reserving the right to object, will the Senator give ar explana- tion of the resolution. Mr. HAYDEN. It increases’ the amount of money available to the Sen- ate Subcommittee on Campaign Ex- penditures by $25,000. Mr. WHERRY. I have no objection, The VICE PRESIDENT. Is there ob- jection to the present consideration of the resolution? There being no objection, the resolu- tion (S. Res. 311) submitted by Mr. Gii- LETTE on July 20, 1950, was considered and agreed to, as follows: Resolved, That the limit of expenditures authorized under Senate Resolution 260, Eighty-first Congress, second session, agreed to April 18, 1950 (authorizing the expendi- ture of funds and the employment of as- sistants by the Committee on Rules and Ad-~ ministration, or any authorized subcommit- tee thereof, in carrying out the duties im- posed upon it by subsection (0) (1) (D) of rule XXV of the Standing Rules of the Senate) is hereby increased by $25,000. JULY 27 ADDITIONAL PERSONNEL FOR COMMIT- TEE ON LABOR AND PUBLIC WELFARE Mr. HAYDEN, Mr. President, from the Committee on Rules and Adminis- tration, I report favorably, without amendment, Senate Resolution 309, and ask unanimous consent for its present consideration. The VICE PRESIDENT. Is there ob- jection to the present consideration of the resolution. Mr. WHERRY. Reserving the right to object, as I understand, it provides only for a continuation of the personnel the committee now has. Is that correct? Mr. HAYDEN Yes; two persons. Mr. WHERRY And it continues in effect until what time? Mr HAYDEN. Until August of next year, Mr. WHERRY. Does the Senator care to comment on whether in the future this appropriation might be handled by legislative action? Mr. HAYDEN. It is expected it will be. Mr. WHERRY. And the main pur- pose of the resolution is to continue the item under the contingent fund bccause it 1s not now under the legislative fund? Mr, HAYDEN. That is correct. The VICE FRESIDENT. Is there ob- jection to the present consideration of the resolution? There being no objection, the reso- lution (S Res. 309) submitted by Mr. Tuomas of Utah on July 12, 1950, was considered and agreed to, as follows Resolved, That the authority of the Com- mittee on Labor and Public Welfare, or any duly authorized subcommittee thereof; under Senate Resolution 215, Eighty-firet Congress, agreed to February 9, 1950, is hereby con- tinued until August 31, 1951. INCREASE IN LIMIT OF EXFENDITURES BY SELECT COMMITTEE ON SMALL BUSI- NESS Mr. HAYDEN. Mr. President, from the Committee on Rules and Admunis- tration I report favorably, with an amendment, Senate Resolution 315, to provide an increase in the limit of ex- penditures by the Select Committee on Small Business, and ask unanimous con- sent for its immediate consideration. The VICE PRESIDENT. Is there ob- jection to the present consideration of the resolution? Mr. WHERRY. Mr. President, reserv- ing the right to object; did the Small Business Committee get a legislative budget? Mr, HAYDEN, It did, but this is the $10,000 customarily paid to a standing committee out of the contingent fund of the Senate. Mr. WHERRY. I understand this $10,000 is paid out of the contingent fund to provide for the expenses of the Small Business Committee. Is it not to be used prior to the time the legislative budget takes effect? Mr. HAYDEN. That is correct. Mr. WHERRY. So next year the Small Business Committee will be on the legislative budget and not on the con- tingent fund of the Senate? Mr, HAYDEN, Yes. Mr. WHERRY,. I have no objec.ion.
1950 The VICE PRESIDENT. Is there ob- jection to the present consideration of the resolution? There being no objection, the Senate proceeded to the consideration of the resolution (8S, Res. 315), submitted by Mr. Sparkman on July 21, 1950. The amendment of the Committee on Rules and Administration was, in line 7, after the word “section” to strike out “1 of S. Res, 722, agreed to May 26, 1950,” and insert “134 (a) of Public Law 601, Seventy-ninth Congress”, so as to make the resolution read: Resolved, That the Select Committee on Small Business created by Senate Resolution 68, agreed to February 20, 1950, is authorized to expend from the contingent fund of the Senate the sum of $10,000 in addition to any other amount available to said committee, for the purpose of holding hearings, report- ing such hearings, and moking investiga- tions as authorized by section 134 (a) of Public Law 601, Seventy-ninth Congress. Mr. WHERRY. Mr. President, what goes the public law referred to provide or? Mr. HAYDEN. That is the public law which now provides $10,000 for a com- mittee. Mr. WHERRY. I have no objection. The VICE PRESIDENT. The ques- tion is on agreeing to the amendment of the committee. The amendment was agreed to. The resolution as amended was agreed to. INCREASE IN LIMIT OF EXENDITURES BY COMMITTEE ON INTERSTATE AND FOR- EIGN COMMERCE Mr. HAYDEN. Mr, President, from the Committee on Rules and Adminis- tration I report favorably, with amend- ments, Senate Resolution 308, authoriz~ ing an increase in the limit of expendi- tures by the Committee on Interstate and Foreign Commerce, and I submit a report (No. 2174) thereon. I ask unani- mous consent for immediate considera- tion of the resolution. The VICE PRESIDENT. Is there ob- jection to the present considcration of the resolution? Mr. WHERRY. Mr. President, reserv- ing the right to object, I ask the dis- tinguished Senator to give an explana- tion of the resolution. Mr. HAYDEN. Mr, President, the resolution relates to the Committee on Interstate and Foreign Commerce, which has a very large piece of work; namely, to investigate the airline indus- try, the merchant marine, and the do- mestic land and water transportation and radio, telegraph, and telephone com- munications. The amount originally proposed in the resolution was $75,000. The com- mittee proposes to reduce that to $69,- 000, to provide funds to permit the com- mittee to carry on the work until the next year. Mr. WHERRY. Mr. President, I un- derstand that this resolution provides for a continuation of a matter already authorized, and is in connection with ap- propriations already made. The pur- pose of the resolution is to have that work continued, as I understand. Mr. HAYDEN. That is correct. Mr, WHERRY. I have no objection, CONGRESSIONAL RECORD—SENATE There being no objection, the Senate proceeded to consider the resolution (5S. Res. 308), which had been reported from the Committee on Rules and Adminis- tration with amendments, on page 1, in line 7, to strike out “$75,000” and insert “$69,000;" and in line 9, to strike out “March 1, 1951” and insert “February 28, 1951”, so as to make the resolution read: Resolved, That the Mmit of expenditure contained in Senate Resolution 60, agreed to April 11, 1949 (authorizing the Commit- tee on Interstate and Forelgn Commerce to investigate problems relating to the airline industry, the United States merchant ma- rine, domestic land and water transporta- tion, and radio, telegraph, and telephone communications), hereby is increased by $69,000, and the time within which the com. mittee may complete the said investigation hereby is extended to February 28, 1951. The amendments were agreed to. The resolution as amended was agreed to. INCREASE OF COMPENSATION OF INDEX- ERS OF CONGRESSIONAL RECORD Mr. HAYDEN. From the Committee on Rules and Administration, I report favorably, without amendment, House Concurrent Resolution 233, and I sub- mit a report (No. 2176) thereon. I ask unanimous consent for its immediate consideration. The VICE PRESIDENT. The resolu- tion will be read by title. The LEGISLATIVE CLERK. A concurrent resolution (H. Con. Res. 233) increasing the compensation of employees of the Government Printing Office engaged in the preparation of the indexes of the CONGRESSIONAL RECORD. The VICE PRESIDENT, Is there ob- jection to the present consideration of the concurrent resolution? Mr. WHERRY. Mr. President, reserv- ing the right to object, I ask the distin- guished Senator for an explanation of the concurrent resolution, Mr, HAYDEN. The concurrent reso- lution is one which the House passed, in order to provide for the proper compen- sation of those who prepare the indexes to the CONGRESSIONAL ReEcorp. They perform a very valuable service. Half of the proposed increase is to be paid out of the contingent fund of the House, and half out of the contingent fund of the Senate. The employees affected are old-time employees, and they perform a very val- uable service. The committee was unan- imous in recommending the enactment of this measure. The VICE PRESIDENT. Is there ob- jection to the present consideration of the concurrent resolution? There being no objection, the Senate proceeded to consider the concurrent resolution. Mr. WHERRY. Mr. President, I should like to ask one question. Yester- day I heard the testimony, and I think this is a worthy cause, and I think the appropriation provided in this case is warranted. However, I wish to call the attention of the distinguished Senator from Ari- zona to the fact that other departments were also mentioned yesterday, in ree spect to eliminating inequities of over- time work, Ishall not now go into a dis- 11169 course in regard to those whose situa- tions should be looked into; but I had particular reference to our own Official Reporters organization, which I under- stand is under contract. While we are correcting an inequity in the case in- volved in the concurrent resolution which we are now considering, I believe further study should be made in regard to all these inequities. Mr. HAYDEN. Ientirely concur with the Senator with respect to the Official Reporters of the Senate. The VICE PRESIDENT. The question is on agreeing to the concurrent reso- lution? The concurrent resolution (H. Con. Res, 233) was considered and agreed to. BILLS INTRODUCED Bills were introduced, read the first time, and, by unanimous consent, the second time, and referred as follows: By Mr. SMITH of New Jersey: § 3981. A bill for the relief of Irmgard Kohler; ani 8. 3982. A bill for the relief of Tu Do Chau (also Known as Szetu D,u or Anna Szetu); to the Committee on the Judiciary. By Mr. SALTONSTALL (by request) : 8 3983. A bill to amend chapter 85, title 28, United Stutes Code, by adding a new sec- tion 1360 relating to juri8diction of district courts over certain military preference cases; to the Committee on the Judiciary. By Mr. LEHMAN: 8.39C4. A bill for the relief of Fuel Pietru- ezynski; to the Committee on the Judiciary. By Mr. MAGNUSON: 8 3085. A bill for the relief of John W. Smith; to the Committee on the Judiciary. By Mr. TYDINGS: 8.3986. A bill to provide family allow- ances for the dependents of enlisted members of the Armed Forces of the United States, and for other purposes; to the Committee on Armed Services. By Mr. EASTLAND: S 3987. A bill to amend title 18, United States Code; to the Committee on the Ju- diciary. (Mr. KEM (for himself and Mr. DoNNELL) introduced Senate bill 3988, to provide for designation of the United States Veterans’ Administration hospital to be constructed at 8t. Louis, Mo., as the Dwight F. Davis Veter- ans’ Hospital, which was referred to the Com- mittee on Labor and Public Welfare, and appears under a separate heading.) DWIGHT F, DAVIS VETERANS’ HOSPITAL, ST. LOUIS, MO. Mr. KEM. Mr. President, there is now being constructed in St. Louis, Mo., a United States Veterans’ Administration hospital. On behalf of my colleague the senior Senator from Missouri {Mr. Don- NELL] and myself, I introduce for appro- priate reference a bill to provide for des- ignation of that facility as the Dwight F. Davis Veterans’ Hospital in honor of the late soldier-statesman of that name. Colonel Davis was a native of St. Louis, Mo. He served in ‘vorld War I with great distinction and was awarded the Distinguished Service Cross for ex- traordinary heroism in action at Baulny and Chandron Farm. He also was awarded the Legion of Honor by the Gov- ernment of France. Later, he served his country well in important Government positions, nota- bly as Secretary of War and as Gover- nor General of the Philippines. He was prominent in philanthrople work with such organizations as the
11170 Tenement House Association and the So- ciety for Prevention of Tuberculosis, He was one of the founders and later com- mander of St. Louis Post, No. 4, of the American Legion. As park commissioner in St. Louis he took down the keep-off the-grass signs and made the parks a place for comfort, recreation, and en- joyment of the people. This action was typical of him. Those interested in sports will recall him as the donor of the famous Davis Cup for international ten- nis competition. It is our belief that it would be a source of pride and satisfaction to the people of the city of St. Louis and of the State of Missouri to have the new veterans’ hospital bear the name of Dwight F, Davis. The bill (S. $988) to provide for des- ignation of the United States Veterans’ Administration hospital to be construct- ed at St. Louis, Mo., as the Dwight F. Davis Veterans’ Hospital, introduced by Mr. Kem (for himself and Mr, DONNELL), was read twice by its title, and referred to the Committee on Labor and Public Welfare. GENERAL APPROPRIATIONS— AMENDMENTS Mr. BUTLER, submitted an amend- ment intended to be proposed by him to the amendment intended to be proposed by Mr. Bripces (for himself and other Senators) to the bill (H. R. 7786) making appropriations for the support of the Government for the fiscal year ending ‘June 30, 1951, and for other purposes, which was ordered to lie on the table and to be printed. Mr. WHERRY submitted an amend- ment intended to be proposed by him to the amendment intended to be proposed by Mr. Brinces (for himself and other Senators) to House bill 7786, supra, which was ordered to lie on the table and to be printed. TRANSPORTATION IN INTERSTATE COM- MERCE OF CERTAIN FOREIGN MOTION PICTURES Mr. JOHNSON of Colorado. Mr. President, I submit for appropriate ref- erence a resolution, which reads as follows: Resolved, That it is the sense of the Senate that motion pictures which have been pro- duced or directed by persons who (1) were active members of the Italian Fascist Party, or the German Nazi Party, at any time during the period in which the United States was at war with Italy or Germany respectively, or (2) are known to have collaborated with German &S troops in Germany or Italy at anytime subsequent to December 11, 1941 and prior to May 8, 1945, should not be trans- ported in interstate commerce in the United States for exhibition purposes, The producers of films have an unusual opportunity to spread propaganda and doctrines inimical to democratic govern- ment. Such reprehensible characters as Ro- berto Rosselni should not be producing films for the American people. Roscellini became an active Fascist in 1942 and when Germany took over he was close friend and associate of Osvaldo Picchi, who in turn was denounced by the Allied Court for his connection with the in- CONGRESSIONAL RECORD—SENATE famous Nazi storm troopers—the Nazi §S forces. These men and others of their ilk are the enemies of the United States and the things we believe in. If we are wise we will keep them and their films and their pernicious influence away from our shores. The VICE PRESIDENT. The resolu- tion will be received and appropriately referred. The resolution (8. Res. 321) was re- ferred to the Committee on Interstate and Foreign Commerce. Mr. JOHNSON of Colorado, Mr. President, I ask unanimous consent that a statement by Walter Winchell, entitled “Report to the People” be printed in the Recorp at this point as part of my remarks, There being no objection, the state- ment was ordered to be printed in the RecorD, as follows: STATEMENT BY: WALTER WINCHELL IN NEW York REPORT TO THE PEOPLE This column has repeatedly warned the State and Justice Departments and the people that large numbers of Nazis and other Hitlerats have been creeping into this coun- try. So far as Government security agencies gare concerned most of our warnings have fallen on deaf ears. Here are a few instances in which we succeeded: Last year we documented a case against Walter Gieseking, the plianist-collaborator who played Nazi tunes for Hitler. Rather than face Department of Justice investiga- tion Herr Gieseking scurried back to Europe * © © We proved that Ferenc Vajta, the Hungarianazi, was a leader in the Hungarian Arrow Cross (Fascist) Party. The Depart- ment of Justice then nailed him. A few months ago Vajta left the United States “voluntary” for South America * * *® We stripped Edward Sittler, the Nazi radio official who tried to stay in this country after he completed his testimony as a witness in several treason trials. Sittler equealed that he wanted to become an American citizen pgain. The heel was born here. He is now swaiting deportation hearings * * * Our most recent target was Lajos Marschalko, gnother Hungarian who, during the war, polson-penned newspaper articles which urged the shooting of captured American aviators. Marschalko is now at Ellis Island awaiting Uncle Sam's boot by deportation order. But the Nazi parade into the United States continues. On May 23 of this year Karol Sidor sneaked across the border from Canada as a visitor, This democracy hater was given @ visa by an American consul in Montreal, despite the fact that his name was on a United States State Department black list, There was good reason for black-listing Karol Sidor, Look at his record: After the Munich-Hitler rape in September 1938 Czechoslovakia was divided into three states. Karol Sidor was National Vice Pre- mier. Joseph Tiso was Premier of one of the states—Slovakia—until March 10, 1939. Two days later Sidor became Premier of Slovakia. Two days after that the Nazis walked into Czechoslovakia. Tiso immediately became the Hitler-puppet Premier of the Slovak Government and Karol Sidor his Minister of Interior. Tiso's record as a Naz! tool; First Premier, later President of Slovakia, he forced his country into the Nazi economy and war ap- paratus. For his crimes Tiso was arrested after the war and tried as a Nazi. He was convicted and hanged in April 1947 by the Czechs before Russia seized their little de- mocracy. Note that date—April, 1947—be- cause Karol Sidor and others like him now JULY 27 claim that Tiso was a victim of Communist persecution. A convenient excuse behind which Nazis like to hide. During this same Tiso-Nazl regime (from July 1939 to 1945) Karol Sidor was a diplo- mat in the Slovakian foreign service. His government declared war on the United States, by Hitler’s order) and in his 6 years as an ambassador for Slovakia Sidor was an important cog in the machinery of Axis di- plomacy. After Munich, Karol Sidor and Joseph Tiso transformed the Hlinka (until then a minors ity political group) into a totalitarian party. They suppressed or annihilated all opposing parties, using a strong-arm gang of storm troopers, the infamous Hlinka Guard, Sidor was the organizer and first leader of the Hlinka Guard. The terrors and outrages committed by Hitler's storm troopers in Nazi Germany were duplicated by the Hlinka Guard tn Slovakia. Like his boss Tiso, Karol Sidor was ac- cused (after the war's end) of collaboration with the Nazis. Unlike Tiso, who was nabbed in Czechoslovakia, Sidor stayed on in Italy where he had a diplomatic post and thus avoided punishment, In October 1947 he was tried in absentia by the Czechs na- tional court, convicted of collaboration, and sentenced to prison for 20 years. Note that the Commies had not yet seized Czechoslo- vakla, which was still a democracy under President Eduard Benes. Today Herr Sidor roams freely in the United States, thumping his chest and pos- ing as a good anti-Communist—conventently forgetting his pro-Nazi record. He has duped many good citizens of Scranton, Pa. (where his daughter lives), into helping him. He has even made passes at a United States Congressman to introduce a bill in the House of Representatives which would allow him to remain in the United States as a perma- nent resident. Of course, Sidor didn't tell this Congressman that in February 1939 he sent a delegation to Berlin for discussions with Gen. Hermann Goerlng, and we'll bet the Congressman doesn’t know that on Jan- uary 25, 1945 (when the United State was at war with Hitler), Sidor was responsible for & statement to the effect that the Slovak people were the friends of Germany. The State Department approved Sidor’s visa in May after he asked permission to deliver One speech before a Slovak group in Cleveland. That speech has come and gone, but not Sidor, who has a half-dozen publice speaking engagements scheduled between now and August 6 in Pennsylvania, West Virginia, and Wisconsin. Here’s the proof of State Department stu- pidity in this case: Nine months ago Herve J, L'Heureux, Chief of the State Department’s Visa Division, in Washington, D. C., wrote as follows: “The records of the State Depart- ment show that the American consulate gen- eral at Naples, Italy, refused a visa to Mr. Sidor under the authority of title 22, sec- tion 53.33, of the Code of Federal Regula- tions, as a person whose entry would be prejudicial to the interests of the United States.” One month later George L. Brandt, American copsulate general in Naples, wrote @ letter stating that his office had refused an immigration visa to Karol Sidor on the ground that Sidor’a admission would be harmful to the interests of the United States. If Karol Sidor was no good in the eyes of the United States State Department in Sep- tember 1949, what made him a desirable visitor in May 1959? Why didn’t the Ameri- can consul in Montreal (who O. K.’d Sidor's visa application) know as much about the man's rotten record as the American consul in Naples, Italy? Or did he? In short, this is just one more Instance of blundering red tape, or perhaps it’s part of an idiotic plan on the part of some State Department officials to give American shelter to the killers of American soldiers. Mither
1950 way, Secretary of State Acheson, you try explaining it to Gold-Star Mothers and crip- pled GI's in vets hospitals. We can’t. THE TRUTH ABOUT CVA—ADDRESS BY SENATOR TAYLOR [Mr. MURRAY asked and obtained leave to have printed in the Recorp an address on the subject The Truth About CVA, delivered by Senator Taytor in Ruppert, Idaho, July 8, 1950, which appears in the Appendix.]} MILLIONS FOR EDUCATION—EDITORIAL FROM THE COMMONWEAL {Mr. MURRAY asked and obtained leave to have printed in the Recorgp an editorial entiled ‘Millions for Education,” published in the July 7, 1950, issue of Commonweal, which appears in the Appendix.] FULL-SCALE MOBILIZATION OF NATION'S RESOURCES—-ADDRESS BY SENATOR MARTIN [Mr. MARTIN asked and obtained leave to have printed in the Recorp a statement by him to the Society of the Twenty-eighth Division, regarding the necessity for tull- scale mobilization of the Nation’s resources, which appears in the Appendix.] A NATIONAL FUEL POLICY—STATEMENT BY SENATOR MYERS (Mr. MYERS asked and obtained leave to have printed in the Recorp a statement made by him before the Committee on Interior and Insular Affairs on behalf of Senate Reso- lution 239, to establish a national fuel pol- icy, which appears in the Appendix.] BROADCAST BY SENATOR MYERS TO PEOPLE OF PENNSYLVANIA—NO. 81 IN BIWEEKLY SERIES (Mr. MYERS asked and obtained leave to have printed in the Rxecorp No. 81 in a bi- weekly series of broadcasts by him to the people of Pennsylvania on the week end of July 21-23, which appears in the Appendix. ] APPEAL FOR CIVIL DEFENSE FOR AMER- ICAN CITIES—STATEMENT BY SENATOR WILEY {Mr. WILEY asked and obtained leave to have printed in the Recorp a statement pre- pared by him under the heading “Appeal for civil defense for American cities,” which ap- pears in the Appendix.] ARMING OF FRANCE AND SPAIN—EDITO- RIAL FROM THE MEMPHIS PRESS- SCIMITAR [Mr. EASTLAND asked and obtained leave to have printed in the Recorp an editorial entitled “France and Spain,” published in the Memphis Press-Scimitar July 20, 1950, which appears in the Appendix.] RETARDED MAIL SERVICE—EDITORIAL FROM THE MANDAN PIONEER [Mr. LANGER asked and obtained leave to have printed in the Recorp an editorial en- titled “Retarded Mall Service,” published in the Mandan, N. Dak., Pioneer July 7, 1950, which appears in the Appendix.] NEW TAXES—EDITORIAL FROM THE PHILADELPHIA INQUIRER {Mr. MARTIN asked and obtained leave to have printed in the Rrcorp an editorial en- titled “New Taxes, Yes; but Push Economies,” ‘published in the Philadelphia Inquirer July 27, 1950, which appears in the Appendix, ] THE KOREAN WAR—ARTICLE BY WALTER LIPPMANN ‘ [Mr. WATKINS asked and obtained leave to have printed in the Recorp an article en- titled “After the Present Phase” by Walter Lippmann, published in the Washington Post of July 27, 1950, which appears in the Appendix. ] CONGRESSIONAL RECORD—SENATE THE WAR IN KOREA—ARTICLE BY HARRY ¥. KERN [Mr. WATKINS asked and obtained leave to have printed in the Recorp an article by Harry F. Kern entitled “An Opinion: Maybe Moscow Wasn’t Surprised,” published in the issue of Newsweek for July 24, 1950, which appears in the Appendix. ] ANTIDOTE FOR COMMUNIST PROPA- GANDA—-SERMON BY REV. H. R. HODG- SON [Mr. O'CONOR asked and obtained leave to have printed in the Recorp a sermon de- livered by Rev. H. R. Hodgson at Grace Methodist Church, Takoma Park, Md., on a) 2, 1950, which appears in the Appen- PSYCHOLOGICAL WARFARE—ARTICLE BY PETER EDSON [Mr. BENTON asked and obtained leave to have printed in the Recorp an article entitled “Psychological Warfare,” written by Peter Edson, and published in the Washington Daily News, July 26, 1950, which appears in the Appendix.] MOSCOW DECREES PEACE SABOTAGE— ARTICLE BY ALEXANDER FEINBERG {Mr, BENTON asked and obtained leave to have printed 1n the REcorp an article en- titled “Moscow Decrees Peace Sabotage,” written by Alexander Feinberg, and published in the New York Times on July 22, 1950, which appears in the Appendix.] THE KOREAN WAR—JOURNALISTIC COMMENT (Mr. BENTON asked and obtained leave to have printed in the Recorp an editorial, an article, and a letter dealing with the Korean situation, which appear in the Appendix. ] WASHINGTON NEWS LETTER BY SENATOR MYERS TO THE PEOPLE OF PENNSYL- VANIA {Mr. MYERS asked and obtained leave to have printed in the Recorp a Washington News Letter, dated July 20, 1950, a personal report by him to the people of Pennsylvania, which appears in the Appendix. ] NORWAY AND COMMUNIST AGGRESSION IN KOREA—ARTICLE BY WILHELM MORGENSTIERNE {Mr. HUMPHREY asked and obtained leave to have printed in the Rrcorp an article on the subject Norway and Communist Aggres- sion tn Korea, by Ambassador Wilhelm Mor- genstierne, of Norway, which appears in the Appendix } PRICES AND PROFITS-—-STATEMENT BY SENATOR HUMPHREY {Mr HUMPHREY asked and obtained leave to have printed in the Rrcorp a statement prepared by him entitled “Statement on Prices and Profits,” together with news com- ments and a letter, which appear in the Appendix.) THE DAIRY INDUSTRY AND ITS PROB- LEMS—EXCERPTS FROM STATEMENT BY SENATOR LEHMAN BEFORE B8UB- COMMITTEE ON AGRICULTURE [Mr. LEHMAN asked and obtained leave to have printed in the Recorp excerpts from a statement made by him before the Gillette Subcommittee on Agriculture, in regard to the problems concerning the dairy industry, as related to the present price situation, which appear in the Appendix.) SUBVERSIVE FORCES—BULLETIN OF THE AMERICAN LEGION, DEPARTMENT OF IDAHO [Mr. DWORSHAE asked and obtain leave to have printed in the Recozp a apecial bul- 11171 letin dealing with subversive forces, issued by the American Legion, Department of Idaho, which appears In the Appendix.] CONFIRMATION OF NOMINATIONS IN THE NATIONAL GUARD AND REGULAR ARMY Mr. TYDINGS. Mr. President, from the Committee on Armed Services, I re- port favorably, as in executive session, certain routine nominations in the Na- tional Guard of the United States of the Army of the United States and in the Regular Army. All the nominations re- late to uniformed men, no civilians. The report by the committee regarding them is unanimous. Because of the war situation, I think it imperative that all these nominations be acted on promptly. Therefore, I ask unanimous consent, as in executive session, for the immediate consideration and confirmation of the nominations. The VICE PRESIDENT. Is there ob- jection? Mr. WHERRY. Mr. President, re- serving the right to object—and I shall not object—I wish the Recorp to show again that these are routine nomina- tions, and that no civilians are included in the list. In order to save the expense of printing and to save time, no objec- tion will be made, so far as the minority is concerned. The VICE PRESIDENT. Is there ob- jection to the request of the Senator from Maryland? The Chair hears none, and, as in executive session, the nomi- nations will be received, considered, and confirmed. THE PRESIDENT’S POINT 4 PROGRAM— LETTER FROM DR FRANK OC. LAUBACH AND GEORGE K. BATT Mr. SMITH of New Jersey. Mr. President, under date of July 19 I re- ceived a communication from Dr. Frank C. Laubach and Mr. George K. Batt, who wrote to me on the stationery of the Laymen’s Movement for a Christian World, Inc., who set forth in their brief letter a cogent argument supporting the point 4 program as a part of our total effort to meet the challenge of both the cold and hot wars now facing us. As I am personally acquainted with both the gentlemen who signed this let- ter, and appreciate the sincerity of their approach and the approach of their as- sociates, I ask unanimous consent that the letter be inserted at this point in my remarks, in the body of the Recorp, as an important contribution to the dis- cussion of this particular subject. There being no objection, the letter was ordered to be printed in the Recorp, as follows: THE LayMun's MoveMENT FOR A CHRISTIAN Wonrtp, INC., Benton, Pa., July 19, 1950. The Honorable H. ALEXANDER SMITH, The United States Senate, Washington, D. C. My Drar Senator SmirH:; Please read this thoughtfully. If it is right, it is of immense importance. The most ardent hope of the Communists is that we shall get so obsessed with military preparations that we shall abandon point 4, as a result of the Korean war. If we give up point 4, Russia will eventually win the world, even though we win the Korean came paign. Indeed it is possible that Russla will
11172 withdraw from Korea after giving us such a@ hard fight that we will conclude that our military strength alone can save the world. She hopes that we shall be stupid enough to believe that. For her main weapon has been and will continue to be propaganda, infiltration, con- spiracy, sabotage, and revolution, at which she has had more experience and better suc- cees than any other country in history. She has won a third of the world with it. We cannot check it with counter propaganda alone, with what we call “truth.” The truth will not help us unless we also help the people who are hungry, dissatisfied, sick, and underprivileged. Our deed will prove thetr propaganda to be lies. We are in a vulnerable position because we are fantastically prosperous, with count- less millions of tons of surplus going to waste in our country, as the Reader's Digest and other magazines are revealing to the world. Where people are in poverty that is enough ammunition for the Communists. But if we are helping those people to he- come prosperous by showing them how to employ thetr resources they will feel grate- ful. It is the only way in which we can maintain the moral feadership of the na- tions. The churches of the United States and Canada have organized a committee to search through the churches for the finest Christian men in America, possessing technica] skills, and are offering these men to the United Statcs and the United Nations. If men of éutstanding character and a love of humanity go forth by the hundreds or by the thou- sands, to help unselfishly, they will represent America in her best and most appealing role. Then if we make loans, public or private, we shall be able to make sure that those loans are wisely and honestly used. These men will be able to encourage integrity into the world, where it is now sadly lacking. All this those smart poker players in Mos- cow sec, and they dread point 4 more than they dread our atom bombs. If they can’t block point 4 they will lose the world. They hope to jostle us into covering the planet with American soldiers and officers, trained to win wars, but not qualified to win a war against discontent and misery. Let's not stupidly fall into that trap. We write you with a heavy heart but not withoul hope that God can still lead us out of our bewilderment without the mass killing of total war. He can and will speak through you. We pray that He will, May we hear from you? Faithfully yours, Frank C. LaAvBACH. Groroe K. Bart. P. S—We are indeed grateful for the re- port in Tuesday's Herald Tribune that point 4 appropriations have heen restored to thirty- four and one half millions by the Senate Appropriations Committee. TELEGRAMS RELATING TO REPORT ON DISLOYALTY INVESTIGATION Mr. McMAHON. Mr, President, I have received a telegram from Joseph Barnes, who is a resident of Warren, Conn., and who was mentioned in the Foreign Rela- tions Committee report. I replied to him by telegram, and I have received a tele- graphic reply from him, I have also re- ceived a telegram from Jim Warburg, of Greenwich, Conn. I ask unanimous con- sent to have the telegrams incorporated in the Recorp at this point. Mr. WHERRY. Mr. President, it was a@ httle difficult to understand what the distingushed Senator from Connecticut sald, I should like to ask, if I may—and Iam not going to object to the insertion of the telegrams in the Rscorp—the name of the one involved. I am inter- ested in one particular person mentioned CONGRESSIONAL RECORD—SENATE in the report. Is the Senator going to make a report on that subject. Mr. McMAHON. Oh, no. Mr. WHERRY. That is not the purpose? Mr. McMAHON. No. There being no objection, the tele- grams were ordered to be printed in the Recor», as follows: New Yoru, N. Y., July 18, 1950. Senator Brien McMaHon, Untted States Senate, Washington, D. C.: I have wired Senator Typinos following telegram: “Associated Press states that your subcommittee has released testimony by Louts F. Budeng last April charging General Carlson and myself with being Communists. Since your committee specifically repudiated other charges made before it the release of this charge without comment leaves possible inference that committee gives it credibility. I can and do deny this charge unreservedly but I would like to learn from you what re- course is now open to a citizen so slandered publicly through your subcommittee re- lease. General Carlson is dead, but I am alive and definitely kicking.” I would like to ask the same question of you as Senator from Connecticut where I live. JoserH BaRrNgzs. 7-_—_— JuLy 20, 1950. JosEePH BARNES, New York City: Retel. I fully understand how you feel and, believe me, I deeply regret that you didn’t get an opportunity to submit a denial as the charges were published. Why not send me a statement immediately and I will give it to the press and put it in the Con- GRESSIONAL RECORD. Brien McMaton, United States Senator. TorrincTon, Conn., July 21, 1950. Eenator Brien McManon, United States Senate: Thank you for your reply and your offer. I am delighted to repeat that 1 can and do deny unreservedly charge that I am or have ever been a Communist. Since hearings ended without my having chance to get this on your record as you point out, I will natu- rally prefer your releasing these three tele- grams and putting them in CoNGrEssIONAL Rrcorp, of course, with any comment you may want to make. JoserH Barnes. GreenwicH, Conn., July 18, 1950. Hon. Brien McManon, United States Senate Office Building, Washington, D. C.: Referring my previous telegram in view of your committee's splendid repudiation of charges against others cannot understand Associated Press report that your committee has released without comment Budenz alle- gation that General Carlson and Joseph Barnes were Communists, All I know about General Carlson is that he served his coun- try well in time of war and is no longer here to defend himself. Barnes has wired Sena- tor TypInas asking that committee repudiate Budenz statement. I most emphatically second this request and do not hesitate to say, knowing Barnes intimately and being proud to be his friend, that I would vouch for his loyalty as I would for my own. Best regards. Jim Wagsura. EXEMPTION FROM DUTY OF CERTAIN SOUND RECORDINGS IMPORTED BY THE DEPARTMENT OF STATE Mr, GEORGE. Mr. President, yester- day the House of Representatives passed a bill, H, R. 8514. On June 8 the Senate passed an identical bill, S, 3545, The JULY 27 bills are identical in all respects. I ask unanimous consent for the present con- sideration of the House bill, H. R, 8514. The VICE PRESIDENT. The Chair Jays before the Senate House bill 8514, coming over from the House of Repre- sentatives, which will be stated by title. The bill (H. R. 8514) to amend the Tariff Act of 1930 to provide for exemp- tion from duty of certain sound record- ings imported by the Department of State, and for other purposes, was read twice by its title. The VICE PRESIDENT. Is there ob- jection to the present consideration of the House bill? Mr. WHERRY. Mr. President, re- serving the right to object, will the dis- tinguished Senator repeat what he said? My attention was diverted. Mr. GEORGE. On June 8 the Senate passed a bill which is identical with House bill 8514, for which I ask present consideration. The bills are the same in all respects. I ask for the present consideration of the House hill, which the House of Representatives passed yes- terday. Mr. WHERRY. The distinguished Senator states that both bills are in ex- actly the same language? Mr, GEORGE. In the same language. Mr. WHERRY. I have no objection. The VICE PRESIDENT. Is there ob- jection to the present consideration of the bill? There being no objection, the bill (H. R. 8514) to provide for exemption from duty of certain sound recordings imported by the Department of State, and for other purposes, was considered, ordered to a third reading, read the third time, and passed. MESSAGE FROM THE HOUSE A message form the House of Repre- sentatives, by Mr. Snader, its assistant reading clerk, announced that the House had agreed to the report of the commit- tee of conference on the disagreeing votes of the two Houses on the amend- ments of the House to the bill (S. 2128) to provide for the modification or can- cellation of certain royalty-free licenses granted to the Government by private holders of patents and rights thereunder. The message also announced that the House had passed a joint resolution (H. J. Res. 512) making further tempo- rary appropriat:ons for the fiscal year 1951, and for other purposes, in which it requested the concurrence of the Senate. HOUSE BILLS AND JOINT RESOLUTIONS REFERRED OR PLACED ON CALENDAR The following bills and joint resolu- tions were severally read twice by their titles, and referred, or ordered to be placed on the calendar, as indicated: H.R, 7447. An act to amend the Tariff Act of 1930, as amended, with regpect to sound- recording materials for use in connection with moving-picture exhibits and nows reels; H. R. 8726. An act to amend the Tariff Act of 1930 to exempt from duty sound record- ings for news broadcasts; and H. J, Res. 497, Joint resolution excluding from gross estate of a nonresident alien works of art on loan to the Trustees of the -National Gallery of Art; to the Committee on Finance. H.R. 9088. An act to authorize the Presi- dent to determine the form of the national
1950 budget and of departmental estimates, to modernize and simplify governmental ace counting and auditing methods and pro- cedures, and for other purposes; ordered to be placed on the calendar, H. J. Res, 512. Joint resolution making fur ther temporary appropriations for the fiscal year 1951, and for other purposes; to the Committee on Appropriations. AMENDMENT OF INTERNAL REVENUE CODE RELATING TO TAXATION OF PERSONAL FINANCE COMPANIES—~CON- FERENCE REPORT Mr. GEORGE. Mr. President, I sub- mit a conference report on House bill 6073, to amend section 501 (b) (6) of the Internal Revenue Code, relating to tax- ation of personal finance companies, and I ask unanimous consent for its immedi- ate consideration. The VICE PRESIDENT. The report will be read for the information of the Senate. The report was read, as follows: The committee of conference on the dis- agreeing votes of the two Houses on the amendment of the Senate to the bill (H R. 6073) to amend section 501 (b) (6) of the Internal Revenue Code, having met, after full and free conference, have agreed to recommend and do recommend to their re- spective Houses as follows: That the House recede from its disagree- ment to the amendment of the Senate and agree to the same with an amendment as follows: Strike out all after the enacting clause and insert the following: “That sec- tion 501 (b) (6) of the Internal Reve- nue Code is amended to read as follows: “*(6) (A) A licensed personal finance company under State supervision, 80 per centum or more of the gross income of which is lawful interest received from loans made to individuals in accordance with the provisions of applicable State law if at least 60 per centum of such gross income Is law- ful interest (1) received from individuals each of whose indebtedness to such com- pany did not at any time during the taxable year exceed in principal amount the limit prescribed for small loans by such law (or, if there is no such lMmit, $500), and (11) not payable in advance or compounded and com- puted only on unpaid balances, and if the loans to a person, who js a shareholder in such company during the taxable year by or for whom 10 per centum or more in value of its outstanding stock is owned di- rectly or indirectly (including in the case of an individual, stock owned by the mem- bers of his family as defined in section 503 (a) (2)), outstanding at any time during such year do not exceed $5,000 in principal amount; and “‘(B) A lending company, not otherwise excepted by section 601 (b), authorized to en- gage in the emall loan business under one or more State statutes providing for the di- rect regulation of such business, 80 per cen- tum or more of the gross income of which ts lawful interest, discount or other author- ized charges (i) received from loans matur- ing in not more than thirty-six months made to individuals in accordance with the provisions of applicable State law, and (il) which do not, in the case of any individual loan, exceed in the aggregate an amount equal to simple interest at the rate of 8 per centum per month not payable in advance and computed only on unpaid balances, if at least 60 per centum of the gross income is lawful] interest, discount or othor authorized charges received from individuals each of whose indebtedness to such company did not at any time during the taxable year ex- ceed in principal amount the limit pre- scribed for small loans by such law (or, if CONGRESSIONAL RECORD—SENATE . there is no such limit, $500), and if the de- ductions allowed to such company under section 23 (a) (relating to expenses), other than for compensation for personal services rendered by shareholders (including mem- bers of the shareholder's family as described in section 508 (a) (2)) constitute 15 per centum or more of its gross income, and the loans to a person, who is a shareholder in such company during the taxable year by or for whom 10 per centum or more in value of its outstanding stock is owned directly or indirectly (including in the case of an individual, stock owned by the members of his family as defined in section 608 (a) (2)), Outstanding at any time during such year do not exceed $5,000 in principal amount.’ “Sec. 2. That section 601 (b) of the Inter- nal Revenue Code is amended by adding at the end thereof the following new para- graph: “'(8) A finance company, actively and regularly engaged in the business of pur- chasing or discounting accounts or notes receivable or installment obligations, or mak- ing loans secured by any of the foregoing or by tangible personal property, at least 80 per centum of the gross income of which is derived from such business in accordance with the provisions of applicable State law or does not constitute personal holding com-~ pany income as defined in section 502, if 60 per centum of the gross income is derived from one or more of the following classes of transactions: “*(A) Purchasing or discounting accounts Or notes receivable, or installment obliga- tions evidenced or secured by contracts of conditional sale, chattel mortgages, or chat- tel lease agreements, arising out of the sale of goods or services in the course of the trans- feror's trade or business; “‘(B) Making loans, maturing in not more than thirty-six months, to, and for the business purposes of, persons engaged in trade or business, secured by— “*(1) accounts or notes receivable, or in- stallment obligations, described in subpara- graph (a) above; “*(i1) warehouse receipts, bills of lading, trust receipts, chattel mortgages, bailments, or factor’s liens, covering or evidencing the borrower's inventories; “*(ill) @ chattel mortgage on property used in the borrower's trade or business, except loans to any single borrower which for more than ninety days in the taxable year of the company exceed 15 per centum of the average funds employed by the com- pany during such taxable year; ““(C) Making loans, in accordance with the provisions of applicable State law, se- cured by chattel mortgages on tangible per- sonal property, the original amount of each of which is not less than the limit referred to in, or prescribed by, subsection (b) (6) (A) (1), and the aggregate principal amount of which owing by any one borrower to the com- pany at any time during the taxable year of the company does not exceed 5,000; and “"(D) If 80 per centum or more of the gross income of the company is derived from one or more of the classes of transactions de- scribed in subparagraphs (A), (B) and (C) of this paragraph, purchasing, discounting, or lending upon the security of, installment obligations of individuals where the trans- feror or borrower acquired such obligations either in transactions of the classes described in subparagraphs (A) and (C) of this para- graph or as a result of loans made by such transferor or borrower in accordance with the provisions of clauses (1) and (il) of para- Graph 6 (A) or of clauses (i) and (il) of paragraph 6 (B) of this subsection, if the funds so supplied at all times bear an agreed ratio to the unpaid balance of the assigned instalment obligations, and documents evidencing such obligations are held by the company; provided that the deductions allowable under subsection 23 (a) (relating to expenses), 11173 other than compensation for personal serve ices rendered by shareholders (including members of the shareholder's family as de- scribed in section 503 (a) (2), constitute 15 per centum or more of the gross income and that loans to a person who ts a shareholder in such company during such taxable year or by for whom 10 per centum or more in value of ita outstanding stook is owned directly or indirectly (including in the case of an individual, stock owned by members of his family as defined in section 608 (a) (2)) outstanding at any time during such year do not exceed $5,000 in principal amount’" And the Senate agree to the same, Waiter F. Grorox, Ep C. JOHNSON, Harry F. Bran, E. D. Mirkin, Rosrrt A. Tart, Managers on the Part of the Senate. R. L. Dovcrton, W.D. Mrs, A Sipnry Camp, Watt A. Lrncn, Danie. A. REED, Roy A. Woopxzurr, THOMAS A JENKINS, Managers on the Part of the House, The VICE PRESIDENT. Is there ob- jection to the present consideration of the conference report? There being no objection, the Senate proceeded to consider the report. Mr. GEORGE. Mr. President, in ad- dition to the report itself, which speaks for itself, I wish to make one statement.’ Section 2 of the conference report is be- lieved by the conferees to be a restate- ment of the regulation of the Bureau of Internal Revenue and of the law as it now exists. There is a typographical error in the conference report which could be tech- nically corrected by adoption of a con- current resolution, but since the error is apparent on its face and could prob- ably be given no construction except the correct construction, I ask that the con- ference report be adopted just as it has been adopted by the House. The VICE PRESIDENT. The question 4s on agreeing to the conference report. The report was agreed to. GENERAL APPROPRIATIONS, 1051 The Senate resumed the consideration of the bill (H. R. 7786) making appro- priations for the support of the Govern- ment for the fiscal year ending June 30, 1951, and for other purposes. Mr. BRIDGES. Mr. President, we have now resumed the appropriations bill, I believe. The VICE PRESIDENT. Yes; and the next amendment will be stated. The next amendment was, under the heading “Chapter IX—Civil functions, Department of the Army—Quarter- master Corps—Cemeterial expenses,” on page 359, line 8, after the word “ceme- teries”, to strike out “$5,500,000” and insert: “$5,000,000.” Mr. BRIDGES. Mr. President, I send to the desk an amendment to this chap- ter offered for myself, the Senator from Michigan [Mr. Fercuson], the Senator from Massachusetts (Mr. SALTONSTALL], the Senator from New Jersey (Mr. Surry], the Senator from Virginia (Mr, Byrpj, the Senator from New Jersey (Mr. Hznprickson], the Senatoy from Pennsylvania (Mr, Marri], and the 4
11174 CON Senator from Delaware (Mr. WriLiams], the Senator from New York [Mr. Ivss], and the Senator from Massachusetts (Mr. Lopcel. The VICE PRESIDENT. Is_ the amendment offered to the committee amendment which has just been stated? Mr. BRIDGES. No; it is an amend- ment to the chapter the Senate is now considering. Mr. McKELLAR. Mr. President, can- not that amendment go over until we reach that point in the chapter? The VICE PRESIDENT, The amend- ment is not now in order, Mr. FERGUSON. Mr. President, a parliamentary inquiry. The VICE PRESIDENT. The Senator will state it. Mr FERGUSON. Cannot the amend- ment lie on the desk? There are seven amendments which should lie on the desk, and called up at the proper time, when they are in order. The VICE PRESIDENT. ‘This amend- ment is not in order, because it is not an amendment to the committee amend- ment which has just been stated. There will be opportunity later on for the amendment to be offered, at a time when dt will be in order. Mr. FERGUSON. Mr. President, can- not the amendments lhe on the desk, and each one be called up as we reach the parts of the bill to which they relate? The VICE PRESIDENT. If the Sen- ator from New Hampshire wishes to have the amendment printed and lie on the table, he may make a request to that effect. However, if he wishes to offer the amendment to a committee amend- ment, the committee amendment to which his amendment relates will be be- fore us in a very few minutes, when we reach that part of the bill. The question is on agreeing to the committee amendment on page 359, in line 8, which has just been stated. The amendment was agreed to. The next amendment was, on page 859, after line 16, to strike out: ENTOMBMENT OF AN UNKNOWN AMERICAN SERVICEMAN OF WORLD WAR IL For expenses, not otherwise provided for, Incident to the selection and burlal, with ap- propriate ceremonies, of the remains of an unknown American who lost his life while serving overseas in the Armed Forces of the United States during the Second World War, as authorized by the act of June 24, 1946 (60 Stat. 302), including the construction of a tomb in the Memortal Amphitheater of the Arlington National Cemetery; alteration of the Amphitheater; and transportation and travel expenses (including a per diem allow- ance of not to exceed $10 in lieu of sub- sistence) of euch dignitaries as may be offi- cially invited to participate in the cere- monies, $350,000, to remain available until June 30, 1952. Mr. McKELLAR. Mr. President, Iam not going to make a speech about the civil functions chapter of the bill. As everyone knows, we have a unified ap- propriation bill this year. It was to be sent to us by April 15. Actually, it reached us on May 11, as I recall. It passed the House of Representatives on May 10. The Senate committee was not inac~- tive in regard to the bill and its various Provisions, A unified bill is a new 3RESSIONAL RECORD—SENATE ome Reo he scheme in regard to the making of ap- propriations. We are trying out this new plan, and the Senate committee joined heartily in trying to work 1t out in the best possible way. Explanations have been made in re- gard to the eight chapters of the appro- priation bill handled thus far by the Senate, in each case the explanation be- ing made by the chairman of the par- ticular subcommittee concerned. Now we have come to the ninth chap- ter of the bill, and I should make an exe planation regarding it. However, I understand that a consid- erable number of amendments are to be offered. Therefore, in order to save time—for we are late in acting on this bill and we may have to pass a joint res- olution continuing appropriations, in view of the delay 1n disposing of this pill—I shall not make a speech in ex- planation of this chapter of the bill, but shall submit a statement in regard to it. I shall be glad to answer any questions which may be proposed by any Members of the Senate. Mr. President, let me also say that we are so far behind that I think it is neces- sary for us to do a hittle less talking. Therefore, I shall set a good example by not talking further at this time, and shall ask that the clerk proceed to state the amendments. I ask unanimous consent to have printed at this point in the Recorp a statement in explanation of this chapter of the bill. If it were not for the cir- cumstances stated I would make the ex- planation orally; but, purely in order to save time, I ask that the explanation be printed, instead of reading it, which or- dinarily I should be very glad to do. The VICE PRESIDENT, Is there ob- jection? There being no objection, Mr. Mc- KeE.LLar’s statement was ordered to be printed in the Rxcorp, as follows: STATEMENT BY SENATOR McKELLaR CHAPTER IX—CIVIL FUNCTIONS, DEPARTMENT OF THE ARMY Mr. President, Chapter IX of the pending bill relating to civil functions of the Depart- ment of the Army makes appropriations for cemeterial expenses; the Alaska communi- cation system; rivers and harbors and flood control under the Corps of Engineers, prac- tically all of which is in continental United States; the United States Soldiers’ Home; the Panama Canal; and the Panama Rail- road Company, BUDGET ESTIMATES, HOUSE ACTION, AND SENATE COMMITTEE RECOMMENDATIONS The 1951 budget estimates total $834,867,- 600. The House approved appropriations in the amount of $630,820,000, or 244 percent below the estimates. This was by far the largest reduction made by the House in any of the appropriation bills. The Senate Appropriations Committee held long hearings, starting on January 26 of this year, taking over 1,100 pages of testi- mony before the bill passed the House. After the bill passed the House, the Senate committee held supplemental hearings of over 200 peges on chepter IX. In addition to departmental witnesses, the Senate com- mittee heard a large number of outside wit- nesses a8 well as a number of Members of the Senate and House of Representatives The subcommittee worked long and hard in marking up the bill after the hearings were closed. The subcommittee and finally the full committee agreed upon a bill rec- JULY 27 Ommending appropriations totaling $762,- 924,620. Although this amount represents @ net increase of $132,104,620 over the House bill, it must be remembered that the House had cut this chapter of the bill by over 24 percent, which was out of all proportion to action it had taken on other chapters in the bill, Even though the total of $762,924,620 rece ommended by the Senate committee is an increase of $182,104,620 over the House bill, the committee's recommendation is still $71,942,880, or 86 percent under the 1951 budget estimates. Since the Senate committee's recommen- dations are 86 percent under the 1951 esti- mates, and the House recommendations are 244 percent under the estimates, this chap- ter of the bill when it comes out of confer- ence will be below the 1951 estimates some- where between 86 percent and 244 percent, which in all probability may represent a greater percentage reduction than will be made in any other chapter of the general appropriation bill. RIVERS AND HARBORS AND FLOOD CONTROL The largest amounts carried in chapter IX are for rivers and harbors and flood-con- trol {tems under the Corps of Engineers Of the total of $762,924,620 recommended by the Senate committee, $731,546,000 is for rivers and harbors and flood-control work The EHouse had reduced appropriations tor this work by 25 percent. The amount rec- ommended by the Senate Appropriations Committee {s $132,401,000 above the House allowance for the Corps of Engineers but is $66,936,000, or 84 percent, below the 1951 budget estimates. INDIVIDUAL PROJECTS Mr. President, for the information of the Senate, I wish to call attention to some of the larger projects, for which it was necessary for the Senate committee to recommend s12- able amounts of money to continue work in progress For the McNary lock and dam on the Co- lumbia River in Washington and Oregon, the Senate committee recommends an appro- priation of $37,500,000, although the budget estimate called for $45,000,000 The House allowed $35,000,000. The estimated Federal cost of this project is $227,028,000, and to date the Congress has appropiiated $72,575,- 000 toward its construction. For the Chief Joseph Daum on the Colum- bia River in Washington, the Senate com- mittee approved the House allowance of $12,- 000,000 even though the budget estimate was $17,000,000. For the Bull Shoals Reservoir in Arkansas and Missouri, the Senate committee recom- mends an appropriation of $16,772,000 as compared to $14,000,000 approved by the House and the budget estimate of $18,090,000. For the Clark Hill Reservoir in Georgia and South Carolina, the Senate committee approved an appropriation of $20,000,000 The House had allowed $16,000,000, and the estimate for 1951 is in the amount of $22,- 000,000. For the Wolf Creek Reservoir in Kentucky, the Senate committee approved the full budget estimate on recommendation of the Corps of Engineers, or $22,160,000. The House had allowed $19,000,009 A total of $56,535,800 has already been spent on this project toward the total estimated Federal cost of $82,700,000. For the Harlan County Reservoir in Ne- brecka, one of the Missouri River Basin projects, the Senate committee approved $16,500,000 as compared to the Louse figure of $12,000,000 and the budget estimate of $18,000,000. For the Buggs Island Reservoir in Virginia and North Carolina, the Senate committee approved the House allowance of $27,000,000 as compared to the budget estimate of 830,« 000,000, The Congress has already appro- rae
1950 priated $34,900,000 for work on this project, the total estimated Federal cost of which is 678,870,000, For the Garrison Reservoir in North Da kota, another one of the large Missouri River Basin projects, the Senate committee ap- proved $33,000,000 as compared to the House figure of $27,000,000 and the budget estimate Of $35,000,000. A total of $80,280,000 has heretofore been appropriated for work on this large project, the estimated cost of which to the Fedcral Government is $202,. 000,000, For the Detroit Reservoir in Oregon, the Senate committee recommends an appro- priation of €20,000,000, which is the budget estimate, as compared to the House allow- ance of $18,000,000. For the Fort Randall Reservoir in Bouth Dakota, the Senate committee has approved an appropriation of @36,110,000, whereas the House allowance was 628,000,000 and the 1951 estimate is $37,500,000. This is another one of the large Missour! River Basin projects authorized by the Congress, the total esti- mated Federal cost of which 1s $165,900,000, toward which to date Congress has appro- priated a total of $53,800,000. For the Lookout Point Reservoir in Ore- gon, the Senate committee approved $165,- 720,500 as compared to $10,000,000 allowed by the House and 16,000,000 proposed by the budget estimate. For flood control on the Mississippi River and tributaries, the Senate committee has recommended a total of $66,778,000 as com- pared to the House allowance of 865,000,000 and the budget estimate of $72,000,000. These are some of the larger projects and flood-control developments, for which it was necessary that the Senate committee recom- mend sizable appropriations to continue work already under way. COMPLETION OF CERTAIN PROJECTS Mr. President, the Senate committee has included a total of @2,919,400 under “Rivers and harbors” to complete 16 rivers and har- bors projects. Under “Flood control, gene eral,” the Senate committee has approved a total of $10,867,800 to complete 26 flood. control projects. Mr. President, I submit the following lst of these projects in the RecorpD as a part of my remarks: Rivers and harbors Amount | Amount Project and State House bill Alabama: Bayou Coden. ...... $4, 000 cont Batre Bayou. 62,700; 62, 700 peticut: CO ove. eens nee eee “ wane 21,000} 21,000 Florida: Now River: is 65, 000 , 000 and: c) Horbor ene eneneeneee e 123,000] 123, 000 Mos rnstable Cyannis jarnstable arbor)... wneeee 182, 500} 182, 500 - ycltiect Harbor... 96,100) 05, 100 nt " Black River Harbor. 162, 000} 162,000 t. arys ver, N werhouse. a J, 160, 000}......... ‘ew York: Northpor Harbor. .-.--.-. ee 87,000} 87,000 10: Lorain Harbor 5 50, 000}. -suaneve cio’ ver at Ports- mouth......--...-. 63, 500 ‘egon: ‘Columbia River and Geilo Fails to fen elilo Fal ‘en- newick, Wash..... 259,000} 84,000 Skipanon Channel ton town Harbor. 1, 875, 000) 3, 919, 400/1, 044, 400 CONGRESSIONAL RECORD—SENATE Flood control, general Amount | Amount Amount | recom- | af In- Btate and profect allowed mended orease House | ate com- | House mittée bill Arkansas: Ozan Creek. . 0} $53,700} $53, 700 California: Farmington Reservoir............-- $500, 000) 1, 634, 000)1, 134, 000 Dlinois: Chouteau, Nameoki, and Venice drain- age and levee dis- trlot. el 80, 000 60,000} 80,000 Qniona_... 2.22.22... 280,000) 298,100 18 100 Miller Pond drain- aro and levee dis- et. 110,000} = 117,700 7,700 Rosiclare.. 350,000} 385,000] 35, 000 Indiana: Cannelton.........22] 135,000) 135, 000]......... Lawrenceburg........ 240, 000} = 260,000} 20, 000 Kentucky: Dewey Reservoir... 0} 600, 000) 600, 000 Jackson... ._. QO} 180,090] 180, 000 Nowport..... 700, 000 000). een uisiana: Bayou Teche and Vermilion River...] 875,000) 428,000] 83,000 Shreveport..........] 120,000} 150,000} 80, 000 Massachusetts) Knight- villo Resorvolr ... 2.22. 45,000 45, 000|..--....- Michigan’ Red Run. ....} 490,000} 565,000! 78, 000 Missouri, Charlton Riv- er, Mo. and Iowa _.... 0} 1, 461, 000!1, 461, 000 New York: Montour Falls. ...-..-..-.-.-.-.| 840,000} 340, 000/......... North Dakota: Baldbill Roservolr _ ....--.---- 0} 460,000! 460, 600 Ohio: Massillon......... 0} 624,800] 624, 800 Oklahoma. Hulah = Reservoir, Okla, and Kaps...{ 600,000) 1, 200,000] 600, 000 WW oo eee ee ee ee eee 125, 000} 425, OUO}_-.- Oregon Dorena Reservoir_...| 720,000; 800,000} 80, 000 Fern Ridge Resere 2 ()) | ne 50, 000) 50, 000)....22.-.. Umpqua River and tributaries__....... 50, 000) &5, 400 5, 400 Ponnsylvania: York..... 80, 000 90, 100} 10, 100 Texas: Hords Creek Reservolr......---.-..- 40, 000 50, 000); 10, 000 Total, flood con- trol, goneral.....| 5,380, 000/10, 867, 8005, 487, 800 =| ay Recapitulation: Rivers and harbors..| 1, 876, 000! 2, 019, 40011, 044, 400 Flood control, gen- eral 5, 380, 000/10, 867, 800 |6. 487, 800 Grand total.......] 7, 255, 000) 13, 787, 20016, 53:2, 200 CONCLUDING BTATEMENT I have seen the President’s recommenda- tion for cutting down on some of this do- mestic construction. It seems to me that it should be left as it is under the law because as it is under the law, the President has the right during a war to discontinue any of these projects, and the fact that he will do it is shown by the fact that the President during the last war did discontinue all con- struction projects not essential to our na- tional defense. I wish to thank the members of the sub- committee handling this part of the bill for the long hours and days they gave to tts consideration and to assure the Senate that the numerous projects and items included in this chapter have received the committee's earnest study and consideration. I hope the recommendations of the Sen- ate committee will be approved, Mr. Presi- dent, and I ask that chapter IX be read for the committee amendments. Mr. BRIDGES. Mr. President, we are now considering the so-called civil func- tions chapter of the bill, which contains & very large appropriation item, and has to do with construction. Construction requires man-hours and scarce mate- Yials. Since this bill was acted upon by the Senate Appropriations Committee, we have become engaged in the Korean 111% War. This country is in a state of prep- aration to meet, in the best possible way, the emergency presented by the Korean War and the drain and strain and bur- den it will make upon our economy and upon the Treasury of the United States. I think a wholly different situation con- fronts the Senate, the Congress, and the country from the situation that con- fronted us when this bill was reported. I think the President recognizes that. I have in may hand a letter which I un- derstand was sent to the various Secre- taries, signed by Harry S. Truman, Pres- ident of the United States, and dated July 21, 1950. I desire to read from that letter: 1, All civil public works, both direct Fed- eral programs and grant-in-aid programs, should be screened with the objective, as far 68 practical, of deferring, curtailing, or slow- ing down those projects which do not di- rectly contribute to defense or to civilian requirements essential in the changed inter- national situation set forth in my message. I think that is a very wise statement on the part of the President. I believe it is the duty of the Congress and of the Senate in considering this bill, and the particular chapter which is before us, providing appropriations of hundreds of millions of dollars, the total amount of which is $731,546,000, or almost three- quarters of a billion dollars, to mect this problem head-on and to meet it squarely, in line with at least the tenor of the President's letter from which I have just read. Therefore, at the proper time, for my- self, for the Senator from Michigan [Mr. Fercuson!, for the Senator from Mas- sachusetts [Mr. Sa,tonstaL.], for the Senator from New Jersey (Mr. HEn- pRickson], for the Senator from Penn- sylvania (Mr. Martin], and for the Sena- tor from Delaware [Mr, Wriuiams], I shall offer an amendment, in substance as follows: On page 361, line 25, strike “@1,600,000" and insert “8800,000." On page 364, line 2, strike “221,244,500” and insert “@110,622,250.” On page 365, line 9, strike “$900,000” and insert “$450,000.” On page 365, line 20, strike “486,933,000” and ineert “@218,466,500.” On page 867, line 8, strike “@66,778,000" and insert “$33,389,000.” On page 967, line 9, strike ‘'@460,000” and insert “$225,000.” On page 867, line 14, strike “82,524,500” and insert “81,262,250.” In other words, Mr. President, what the amendment proposes to do, very sim- ply, is to make a 60 percent reduction, cutting in two the appropriations for the items of appropriation contained in this chapter for civil functions. The amend- ment, as Senators will notice, does not touch the item for cemeterial expenses, for the Signal Corps, or for the emer- gency fund. It does cut everything hav- ing to do with construction and adminis- tration of construction. As I said, it does not touch the emer- gency fund. It does not touch the cem- eterial expenses. It does not touch the Signal Corps, and the account on the Boldiers’ Home objective. But it does touch everything else,
11176 Mr. LANGER, Mr. President, if the Senator will yield, may I inquire what the cut is, in percentage? Mr. BRIDGES. Fifty percent. Mr. McCLELLAN, Mr. President, if the Senator will yield, has the amend- ment been printed and is it available to Senators? Mr. BRIDGES. No. I have it typed, and I shall at the proper time send it to the desk. Mr. McCLELLAN, Does the Senator have extra copies? Mr. BRIDGES. Yes; I have at least one extra copy. Mr, McCLELLAN, 'The Senator from Michigan (Mr. Fercuson] has supplied me with a copy. I thank the Senator. The VICE PRESIDENT. The Chair inquires of the Senator from New Hamp- shire whether he proposes to offer a sep- arate amendment as to each item, or to offer them en bloc and have them so voted upon? Mr, BRIDGES. Mr. President, if per- mitted, when the first of these amend- ments is reached, I shall offer the amend- ments en bloc, in order to save time. The VICE PRESIDENT. That can only be done by unanimous consent. 1 Mr, BRIDGES. Then I shall at that time request unanimous consent for the purpose of saving time in the considera- tion of the bill. ’ Mr MAYBANK Mr. President, will the Senator yield? The VICE PRESIDENT. Does the Senator from New Hampshire yield to the Senator from South Carolina? Mr. BRIDGES, I yield. Mr. MAYBANK. I should like to in- quire of the Senator from New Hamp- shire whether the reductions which he will propose, as set forth in the state- ment which he has read, will effect an additional cut above the 10-percent over- all cut which is proposed. Mr BRIDGES. This would be in ex- cess of the 10-percent reduction, and, if the 50-percent cut is made, we would naturally exclude from the 10 percent cut the items in this chapter which are affected. Mr, MAYBANK. I thank the Senator. Mr. FERGUSON. Mr. President, I have joined in these seven amendments because I feel that the situation con- fronting the Nation today makes it quite clear that the days of ‘‘business as usual” are behind us. Likewise, 1t should be clear that we in Government must put behind us the days of “spending as usual.” Government spending on activities which are not essential to the defense effort upon which we are embarked can- not be distinguished from the hoarding of individuals. Both are serious threats to a stable economy. The President, in his message to Con- gress July 19, faced up to the economic consequences of our rearmament pro- gram. He called for “a substantial re- direction of economic resources.” He recognized without hesitation that the dollars spent for military purposes ‘will have magnified effect on the economy as a@ whole,” and he pleaded that “in the CONGRESSIONAL RECORD—SENATE process we do not bring on inflation, with its resulting hardship for every family ” Mr. President, that 18 exactly what hoarding by individuals will do. That is what is happening when wives go to the grocery store, the hardware store, and various other stores and purchase goods which, as essentials, it is unneces- sary for them to buy. We in the Gov- ernment, in making these civil functions expenditures, will do the same thing, because we shall bring about a pressure which will cause inflation and the Pres- ident recognized it only a few days ago. The President has requested, and we are going to appropriate, no less than ten and a half billion dollars for im- mediate rearmament. Consider for a moment what that means to our na- tional economy. It means withdrawing 600,000 more men from the labor force of this country. It means more than $6,000,000,000 of steel and tools and other critical mate- rials that go into the manufacture of arms and ammunition In all, it is more than $10,000,000,000 of manpower, metal, and food that will be diverted from the channels of nor- mal civilian consumption, As the President has so carefully pointed out, the impact of that military spending will be terrific. There must be compensation for it. He forcefully siated in his message: We must promptly adopt some general measures to compensate for the growth of demand caused by the expansion of military programs in a period of high civilian in- comes I am directing all executive agen- cies to conduct a detailed review of Gov- ernment programs, for the purpose of modi- fying them wherever practicable to lessen demands upon services, commoditics, raw materials, manpower, and fucilities which are in competition with those needed for national defense. Mr. President, continuing the quota- tion, I emphasize the concluding sen- tence: The Government, as well as the public, must exercise great restraint in the use of those goods and services which are needed for our increased defense efforts. In other words, the Government must not be a hoarder, I repest the Presi- dent’s words: The Government, as well as the public, must exercise great restraint in the use of those goods and services which are needed for our increased defense efforts. The President has taken further steps to implement that point in his message. He has issued a directive to the heads of 14 departments and agencies under date of July 21. He has asked them to reexamine their programs, giving par- ticular attention to three points, as follows: 1 All civil public works, both direct Fed- eral programs and grant-in-ald programs, should be screened with the objective, as far as practical, of deferring, curtailing, or slowing down those projects which do not directly contribute to defense or to civilian requirements essential in the changed inter- national situation set forth in my message. JULY 27 2. Consistent with the restrictive policy already in force for housing credit, other credit programs should be tightened. The only exceptions should be those which directly contribute to meeting our defense and international responsibilities, 8. Procurement of supplies and equip- ment should be held to minimum amounts, especially purchases of motor vehicles, type- writers, and other equipment using critical materials. Inventories should be reduced to the lowest practical levels, and excess sup- plies and equipment should be made avail- able immediately to the General Services Administration, In addition, I shall expect that in the re- examination of the programs of your agency, you will give first priority to those activities which contribute directly to national de- fonse, including requests of other agencies for assistance. Mr. President, Federal public works, and, most prominently, the civil func- tions of the Corps of Engineers, are the logical point at which to begin a cut- back of Federal spending at a time when resources are being drained to accommo- date the military effort, when construc- tion of GI homes is being cut back under more rigid credit policies, and when every dollar spent is in competition with mil- tary dollars. The material and the men engaged in public works projects are needed elsewhere, in actual military projects, or in boosting national produc- tion for civilian consumption. The President recognizes that fact in the first point of his letter of July 21, We are here recognizing it with our proposal to cut back by one-half appropriations for Army civil functions. While I am now speaking to the Sen- ate, civil engineers have been called to the Budget Bureau to confer with the Budget Director on this particular prop- osition of attempting to cut back Fed- eral civilian expenditures so that we may proceed to defend those who are now fighting and actually dying in Korea. The Nation recognized the necessity for such action in 1942 when we were launched upon the Second World War. We are not sure, as we sit here today, that we are not now launching upon a third world war. Appropriations for the fiscal year 1943, which was the first year we were really in the war, for that fiscal year began July 1, 1942, when we had been in it a little more than 6 months, were made upon a peacetime basis, so far as Army civil functions were concerned, “imost immediately, in 1942, it was rec- ognized that those functions were drain- ing off needed manpower and material. AS a consequence, in October 1942, the War Production Board ordered a halt on all Army civil functions not essential to the national defense. Mr. President, that is what should be done today. In view of the history of that era, we should do now what had to be done in 1942. Funds were im- pounded for projects which were not cer- tified as essential to national defense. Thereafter, appropriations were made only on projects certified as essential to rational defense. The cut-back of 50 percent which we propose in these seven amendments may