‘A2980 just because it wants assurance that it is not. When investigative and accusatory duties are delegated by statute to an admin- istrative body, it, too, may take steps to in- form itself as to whether there is probable violation of the law.” When Mr. Justice Jackson compared the Commission to a grand jury he was speak- ing of the grand jury’s newer tc itvestigate. In that field I believe .be Cum™.c-l1.n has a great cujorur‘‘r in this changing world. In the rvs ‘t an investigation made by the Comm:s:ion of the meat packing industry and the report to Congress thereon that was largely responsible for the enact- ment by Congress of the Packers and Stock Yards Act. The utility investigation by the Commission and the report to Congress thereon was greatly responsible for the en- actment of the Securities and Exchange Commission Act. These areé preventive measures, that is, they prevent unfair restraints on our commerce rather than attempt to cure a disease. Someone has said, “Preventives of evil are far better than remedies; cheaper and easier of application, and sure in result.” Mr. Justice Brandeis in a Commission case (FTC v. Gratz (253 U. S. 241)) decided in 1920, said that the Federal Trade Commis- sion Act “undertook to preserve competition” and “the task of the Commission was to protect competitive business from further in- roads by monopoly.” He further stated that the Commission’s “purpose in respect to restraints of trade was prevention of diseased business conditions, not cure.” The preventive measures of the Commis- sion can be divided into general classifica- tions, (1) the formal litigated cases; and (2) the informal cooperative proceedings and the economic reports. The litigated cases are those instances in which the Commission, after the issuance of a complaint cnc subsequer* hearings, issues its order :euiii 12.) Dut. 7 or parties to cease and desist from particular illegal practices. This is a very important part of the Commisson’s work and is essential to palanced law enforcement. There always have been and perhaps always will be those who must be ordered to comply with the law and there must be sanctions to back up those orders. The Congress recently amended the Federal Trade Commission Act so as to make violations of Commission orders to cease and desist issued pursuant to such act subject to a civil penalty of $5,000 for each day of violation which con- tinues over a period of time. This amend- ment puts more effective teeth into our legal, formal preventive machinery. However, I want to emphasize our coopera= tive, informative, preventive procedures. Briefly, in addition to the economic reports which I have mentioned, these are the trade practice conference rules and the informal stipulations to cease and desist. The trade practice conference procedure is unique in the history of law enforcement and has been developed hy the Commission as a result of its many years of experience. Pur- suant to this procedure members of an entire industry meet in conference under the super- vision of the Commission for the purpose of drafting rules for the prevention of unfair practices by a whole industry and by the individual members as well. This concept is based on the same general theory as Presi- dent Wilson’s League of Nations and the present United Nations, and that is, when men of good will meet under proper guidance to discuss their problems, the result will be good for themselyes and good for all of the people. The possibilities of education and informa- tion in the use of these trade practice rules are great. The large corporations employ skilled attorneys to keep them abreast of the laws and decisions relative to unfair trade practices. The small-business man cannot afford this expense. Many of these small- pusiness men have only a vague idea as to the functions and decisions of the Federal Trade Commission. The trade practice con- ference rules, however, expressed in terms of the nomenclature and the particular prob- lems of the small-business man’s industry supplies these individuals with valuable guides as to their own future practices. The effect of these rules in informing the busi- nessmen and as 2 result in preventing unfair practices is immeasurable. The rules are particularly valuable in establishing standards of nomenclature in an industry. To use a simple illustration, you have frequently seen shock-resistant watches advertised. Have you ever stopped to think what is the test of whether or not a watch is shock-resistant? Many honest manufacturers differed. The Commission held a trade-practice conference for the watchcase industry and among other prob- Jems this question of shock-resistant was settled. ‘You will be interested in the re- sult. Obviously in this industry the term “shock resistant” was not being used in an absolute sense. A watch suitable for ordi- nary uses would not withstand the shock of being dronoed from the top of the Wash- ington Wromiumia. A shock-resistant watch however should withstand the shock of ordi- nary accidents, such as being dropped from a table. The ordinary table or desk is 3 feet high. So the test now used by the watch industry as to whether or not a watch is shock-resistant is: Will it withstand the shock of being dropped 8 feet from the top of the ordinary desk or table. The trade-~ practices rules so provided. It sounds very simple but 1t also makes common sense, Tt also settled a very troublesome question in the watchease industry and gives the consumer deserved protection. Another very useful procedure used by the Commission in preventing unfair prac- tices is Thr cer-terea of informal stipula- tion “™.ome: ~io™ advertisers. In these informal stipulations the advertiser agrees to discontinue using certain false or de- ceptive advertisements. The lifeblood of our complex economy is advertising. With it we are informed of the wares of manu- facturers in the 48 States and throughout the world. Without it our knowledge of com- modities would be drastically limited to word-of-mouth information and would re- sult in a much lower standard of living. To be socially and economically useful, adver- tising must be truthful. The Commission strives to keep it so. Disraeli, the great English statesman, said that “Justice is truth in action.” In the fields of law and economics, truth is facts, properly evaluated. The basic concept of the Federal Trade Commission Act is that by the use of eco- nomic and legal procedures the Commission could gather, properly evaluate, and put facts into action and thereby prevent un- fair restraints on our domestic economy. The Commission believes that we are ful- filling this concept, and as a result are serving the ends of justice. With varied forms of socialism in recent years supplanting much of the system of pri- vate enterprise in the free nations of the Old ‘World as well as in the lands down under— with the economic system of all the nations behind the iron curtain yielding rapidly to the Marxian philosophy of totalitarian rule, . we must put our own economic house in order—keep it in order—and hasten the day when our economic and our political systems will prevail throughout the world and men everywhere will be free. APPENDIX TO THE CONGRESSIONAL RECORD The UN After 5 Years EXTENSION OF REMARKS OF HON. JAY LeFEVRE OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. LEFEVRE. Mr. Speaker, under leave to extend by remarks in the Rec- orD, I include an article by John G. Rogers which appeared in Sunday’s New York Herald Tribune. Mr. Speaker, I think it is timely that we take inventory on what has been ac- complished by the United Nations. When forming this organization 5 years ago, it was the hope of the American people that the United Nations would be the medium through which we would obtain universal and enduring peace. I think the average man is beginning to wonder whether this organization is ef~ fective and whether it will ever be able to accomplish the real purpose for which it was set up. Surely we all want uni- versal peace and if the United Nations, because of the veto power, cannot func- tion to this end, we should either make an effort to reorganize the UN or make a fresh start with a new workable set of rules. The editorial follows: Tue UN Arrer 5 YEaRsS—CONFLICT OF RUSSIA AND WEST CONFRONTS WORLD AGENCY WITH LiFE-OR-DEATH CRISIS (By John G. Rogers) Lake Success.—On April 25, 1945, the San Francisco Conference of 50 countries opened to give birth to the United Nations. Today, 5 years later, many a dream that soared at San Francisco has been roughly shattered and the UN is sprinkled with empty chairs— symbols of the Soviet walk-outs and the world’s big political trouble, the Russian- Western split. Today, 5 years later, Secretary General Trygve Lie is en route to Europe, and prob- ably to Moscow, and the obsession of his mind is how to revitalize or save the UN, Today, 5 years later, even thoughtful and conservative UN delegates sometimes discuss the possibility that they are new witrescirg the last days of the UN as it cri. 2) unc meant to be. How did it all happen? The West says that Russian imperialism and refusal to be a friendly member of the world family is almost the entire cause. The Soviet Union says the cause is American im- perialism and determination to use the UN only for its own purposes. What can be done about it? The UN itself probably can’t do anything directly, or immediately, because the UN is no longer the big show in the political field. ‘The big show is the one that has Washington and Moscow in the leading rules, one as hero and the other as villain, depending on how you look at it. In this imagery, the UN has the role of mutual friend, trying somewhat desperately to bring the hero and the villain into calm negotiation before a final curtain drops. The converted Sperry gyroscope factory - at Lake Success is the home of this mutual friend. The fact that this home exists as @ possible place to bring the hero and the villain into negotiations is the UN’s prin- cipal importance today with regard to the world’s biggest political trouble.
APPENDIX TO THE CONGRESSIONAL RECORD Against this background, Secretary-General Tie is an interesting figure these days. The biz, broad Norwegian, who used to be a labcr lawyer, has leaped abruptly out of the role of mere administrator, to which he has mcre or less confined himself since 1£45, and is attempting to use whatever in- fluence he has d:rectly in the political field to promote Russian-western negotiations. He is now on the high seas headed for Europe. Just before he sailed, he went to Washington and told President Truman ex- ectly how he thought things stand today, and then he undecubtedly asxed the Presi- dent for a similar estimate. Soon Mr. Lie will conduct the same business with Great Britain’s Prime Minister Clement R. Attlee and French Premier Georges Bidault. Then, he will decide while in Europe whether to go on to Moscow and go through the same routine with Soviet Foreign Min- ister Andrei Y. Vishinsky and perhaps Mar- shal Josef Stalin, if he is available. Mr. Lie says that if he does accomplish anything, the results won’t become apparent immediately. By this he means that the very most he can hope for at the moment is to establish some groundwork, to plant some seeds that may flower into negotiations later. When he returns, in mid-May or later, Lake Success will ke able to make a fresh appraisal of the chances of diminishing the cold war. Mr. Lie usually keeps his own counsel on details of his conversations with governments, but he has no poker face and is always ready to tell truthfully whether his spirits are up or down. In this, he is a sort of human barometer of the world political outlock at any given time. On any issue subject to the Russian-west- ern controversy, there is not much to cheer about in the UN record of the last 5 years. Stalemate or walk-out or boycott or propa- ganda ad nauseum runs through this part of the record like muddy feet on a clean floor. But you don’t have to be a blind worshiper of the UN to find elsewhere in the record a good deal to cheer about. The UN stopped a war in Kashmir, between India and Pakistan, and has now persuaded the two to accept new mediation in the matter. The UN helped to goad the Dutch into an Indonesian settle- ment, and it was a referee that contained the Palestine war and then negotiated an ar- mistice. UN pressure or surveillance probably helped to head off Communist grabs in Iran, Greece, and Korea. On the social and economic side, the UN and its specialized agencies have scored big specific victories as well as done slow, plod- ding work with results to show clearly in years ahead. Mass feeding of children around the world, and mass care for Arab refugees made homeless in the Palestine war—these UN charities used some $200,000,000. A cholera plague was killed in Egypt. Fellowship ex- changes are training new experts for a score of countries. Farmers get better seeds through the UN. More than 725,000 Eurcpean displaced per- sons got new homes overseas through UN efforts. Ecuador’s earthquake area received emergency UN aid. The UN saves millions of cattle through inoculation for disease. Long-~ term projects are teaching backward coun- tries how to develop their own resources. Two former Italian colonies in Africa are on the road to independence, and the UN is studying the future of a third. Nine new countries have joined the UN since San Francisco. Fourteen more are beating on the door, hop- ing the Russian western split will abate and let them in. The UN trusteeship system keeps a sharp eye on the welfare of millions of persons liv- ing in non-self-governing areas. The UN is justified in being proud of all of this. Taking the story back to the political field, this correspondent knows a man with faith in the UN who teils the following story: A vaudeville performer was auditioning for @ bored theatrical agent. The performer be- gan by taking off from the stage and fiying all around the theater and finally gliding back to a perfect landing on the stage. The bored agent said, “O K., so you imitate birds. What else can you do?” Too many people, according to the man telling this story, say coldly to the UN, “O.K., so you can stop little wars. What else can you do?” Regulation of the Motion-Picture Industry EXTENSION OF REMARKS HON. ALEXANDER WILEY OF WISCONSIN IN THE SENATE OF THE UNITED STATES Tuesday, April 25 (legislative day of Wednesday, March 29), 1950 Mr. WILEY. Mr. President, I ask unanimous consent to have printed in the Appendix of the REcorpD a statement prepared by me regarding an invitation by the senior Senator from Colorado [Mr. Jonnson], chairman of the Senate Com- mittee on Interstate and Foreign Com- merce, to appear before the committee and testify. There being no objection, the state- ment was ordered to be printed in the ReEcors, as follows: A RESPONSE TO SENATOR JOHNSON’s ILLUMI-~ NaTING LETTER: ACCEPTANCE or INVITATION To Trestiry Berore SENATE COMMERCE CoM- MITIEE . It is always a pleasure to hear from the distinguished senior Senator from Cclorado [Mr. Jounson], the able chairman of the Senate Interstate Commerce Committee. In the case of his “love note’? of April 24, I found his comments more entertaining than quite a few motion pictures. He has a won- derful sense of humor, and I wish he would use it in snmvare*ivc *his nroblem. Let mets so Tol 4.7, points: I SHALL BE HAPPY TO TESTIFY FOR FREEDOM 1. I shall be happy to testify before the Senate Interstate Commerce Committee, ac- cepting his invitation to be the initial wit- ness in defense of the freedom, not just of the moticn picture industry, but the freedom of America’s press against any gestapo or OGPU police-state system that anybody anywhere ever propcses. 2. I am delighted to see that Senator JoHNsoN recognizes that “Federal censor- ship is not the most desirable answer.” That is however, the most gigantic under-= statement I have read in a long time. Fed- eral censorship is not only not the most desirable answer; it is no American answer whatsoever. Coloradans whom Senator JOHNSON so well represents prize their free- dom as much or more than any other Amer- icans, and the good people of Colorado (or for that matter, Wisconsin) do not need any gestapo censorship over what they read, what they see, what they hear. WILL JOHNSON’S ALTERNATIVES BE CONSTITU- TIONAL? 8. I hope that Senator JoHNSON’s alterna- tive suggestions will indeed fulfill his state- ment as to legality and constitutionality—~ not infringing the freedoms guaranteed by the Constitution and the Bill of Rights. 4. As a United States Senator, I say and I think the American people will agree, that as former chairman of the Senate Judiciary Committee, and now its ranking Republican member, I have a particularly strong respon~ sibility to speak out against unconstitu- _ A2981 tional, illegal methods which would violate the Constitution and the Bill of Rights. I have a right to fight Senator JoHNSON’S cure-all, which is worse than the disease. Immeorality in motion-picture actors or anyone else is, of course, a shocking matter; it is no laughing matter. So Senator JoHN- SON’s ideas have on their face a valid ob- jective. in other words, the objective of promoting the highest possible morality, curbing juvenile delinquency, etc, is one that I completely share. As conveyed in my two siatements in the CONGRESSIONAL REC- oxp, I do not condone for 1 second immoral conduct, the breaking of the laws of God and man, or the commercialization of sin by disgusting, suggestive advertising. However, I do not believe in anyone’s mis- leading the American public into believing trat there is allegedly nothing but sin in Hollywood. I will fight such a misleading propeganda drive just as for 12 years I have foughi the phony notion that there is noth- ing but sin in Washington. Within the past several years a couple of Members of Congress have been convicted of illegal ac- tions. But that 1s no reason why 531 Con-~ gressmen and Senators should he licensed, any more than movie actors should be li- censed because of the sin of one or two dis- graceful members of their profession. A United States Army general was convicted of breaking the law, but shall we therefore license every Army officer? Of course not. 5. My major aim has been to have the Congress concentrate on two great objec~ tives in these challenging times: CONGRESS SHOULD NOT PIDDLE ITS ENERGIES ON TANGENTS (a) Preservation of America’s internal and external security. The Constitution has given us the responsibility of promoting the national defense and it seems to me that any side excursions on all sorts of miscellaneous tangents at this time—tangents which can be best handled by the good sense of the American people and the able leadership of our churches—these legislative excursions are tal-ing our eye off the main issue of our times. We are in a cold war throughout the world, and unless we win it, we may be in a hot war; God forbid. Why then shoulc we riddle our energies away on matters Taich con best be handled by private American citi- zens and their church leaders with the co- operation of such great voluntary organiza- tions as the Legion of Decency? (b) Our second great objective is to main- tain America’s checks and balances in Gov- ernment and its freedom against every form of “ism.” The lights of freedom are going out all over the world. As I proved in the legal brief placed in the CONGRESSIONAL ReEcorpD on April 20, the licensing bill which Senator JoHNson unfortunately introduced does the following: HOW JOHNSON BILL VIOLATES UNITED STATES TRADITION 1. It would violate the first amendment to the Constitution. 2. It would violate the fifth amendment to the Constitution. 3. It would violate the sixth amendment to the Constitution. 4, It would constitute a bill of attainder because it is directed against a specific pro- fession by requiring licensing of actors and producers. If Senator JoHNSON will look at the Bill of Rights, he will note that bills of attainder were prohibited by cur founding fathers. 5. It constitutes an ex post facto law— another specific prohibition of the Consti- tution because it makes folks susceptible to an extra punishment which was not on the statute books at the time of the alleged commission of their misdeeds. I am sure that our newspapers in par- ticular, will not agree in this instance with
A2982 the distinguished Senator from Colorado be-~ cause no American journalist would want to see any element of freedom of the press adversely affected. As pointed out in my legal brief, the Supreme Court in 1946 held: “We have no doubt that motion pictures like newserane-s and radios are included in the press, “sere freedom is guaranteed by the first amendment.” UNCLE JOE STALIN RUBS HIS HANDS IN GLEE Not only, therefore, does a gestapo l- censing system violate the very freedoms which 440,000 Americans died in two world wars to preserve, but such licensing would cripple the very industry on whom we are placing a heavy reliance to win the cold war. Uncle Joe Stalin must be rubbing his hands with glee at the prospect that we in Congress might conceivably shackle the very in- dustry that he fears most. American motion pictures have brilliantly shown the world that we have shoes on our feet, autos in our garages, warm clothes on our backs, decent homes in which to live, wholesome food to eat, churches to worship in free, newspapers to read, radios to listen to, and freedom to grow. The Protestant, Catholic, and Jewish churches of America prize the dignity of the individual—his freedom to grow. Let not the Congress take any action which threatens man’s dignity and freedom under any guise. Soil Conservation Districts Are Demcc- racy at Grass Roots EXTENSION OF REMARKS HON. LYNDON B. JOHNSON OF TEXAS N THE SENATE OF THE UNITED STATES Tuesday, April 25 (legislative day of Wednesday, March 29), 1950 Mr. JOHNSON of Texas. Mr. Presi- dent, I ask unanimous consent to have printed in the Appendix of the Rrecorp an editorial appearing in the April 21 issue of the San Marcos Record. This editorial was published in central Texas, in an area that is ably served in its conservation work by the Guada- lupe-Blanco River Authority. It applies equally, however, to the same important work being done throughout Texas, call- ing attention to an effective and efficient operation. There being no objection, the editorial was ordered to be printed in the Recorp, as follows: Som ConservaTion Disrricrs ARE DEMocRACY at Grass Roots Soil conservation districts are democracy at the grass roots. That is why so many Texans are becoming more and r<ore interested in them. In these days of increasing governmental regulations, it is important for everyone— farmers, ranchers, and businessmen—to un- derstand what districts are, who runs them, and what they do. It is easy to confuse them with one of the other agencies of the Depart- ment of Agriculture. Under Texas law, soil conservation districts were organized by vote of the local land- owning farmers and ranchers. They are run by their supervisors, who must be local, resi- dent landowning farmers and ranchers elected to office by their neighbors. With no powers of taxation nor eminent domain, the supervisors’ responsibility 1s to coordinate all efforts, public and private, to the soil con- servation task. This coordinated effort is first developed on a district-wide basis by the local people themselves. In every one of Texas’ now 156 districts, covering nearly 90 percent of the State, there are programs and plans of work, developed and written by the home folks. They serve as a guide to each district’s operation. With its program and plan of work as a basis for action, the district’s board of super- visors is ready to go to work. As a rule, all State and Federal agricultural agencies pledge their cooperation to the supervisors. The extension service and the department of vocational agriculture have a big educa- tional job. PMA payments help landowners pay part of the costs of soil conservation. The technicians of the United States Soil Conservation Service, cooperating with the supervisors, make detailed farm and ranch conservation plans with the local operators on farms and ranches as directed by the district supervisors. These farm and ranch conservation plans are the key to what many call the new agri- culture. They are developed with the owner to suit his operating needs as well as those of the land. When all the planning is over, the results are put on paper, with a map, and all details are then agreed to by the owner and the board of supervisors. Operating in accordance with these plans, farmers and ranchers are discovering that it pays to treat the land according to its needs and use it according to its capabilities. Production per acre rises and unit production costs are lower. Owners find, too, that crops are higher in quality. These are things tual consumers in gen- eral and all businessmen can understand. Soil Conservation District Week—May 15 to 21—will give all Texans an opportunity to learn about this program of grass roots democracy that is going on in their midst. Doff Your Hat to the Commies EXTENSION OF REMARKS oF HON. ANTONI N. SADLAK OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. SADLAK. Mr. Speaker, whether we like it or not, the fact of the matter is that we are literally taking our hats off to the Communists in this bloodless phase of the realistically cold contest of ideologies or what have you, and we are losing our shirts in the process. With seemingly complete unconcern the administration travels its self-pre- scribed road of giving the jobs of Amer- ican workers to slave labor corralled be- hind the impenetrable wall of Russian domination. The lower-tariff policy to which the administration is so rabidly addicted is gradually, but thoroughly, snuffing out our industries while helping to build those of an avowed and relentless enemy of the good old American system. Has all semblance of sanity left the administration policy makers or is it just the endless chain of a program ini- tiated by New Dealers to continue all Possible assistance to Russia and her satellites without regard to the price being paid by American workers and the Nation as a whole? The powers in the majority are inclined to dismiss lightly APPENDIX TO THE CONGRESSIONAL RECORD this far-reaching and all-inclusive im- pact upon the Nation. They do not seem to grasp the meaning of the predica- ment in which they have placed both the American industry and its greatest mainstay—the American worker. Upon the manufacturer there has been placed the ever-present and ominous burden of bankruptcy; upon the worker the cruel and inevitable dislodgment from employment which is in turn followed by needless hardship for the family that he is so earnestly trying to bring up in the tradition of the American way. The proponents of “gimme and give away” are guilty of a shameless take- away that is robbing our workers of their jobs. In reply to the rising tide of protests against the current tariff policy which is killing the workers’ opportunity to earn their bread, the administration is saying, in effect, “let ’°em eat cake”’— subsidized cake, that is, in the form of larger and more extensive unemploy- ment compensation benefits. A more clearly obvious cover up could scarcely be imagined. Each passing day sees newer signs of awakening by all segments of the pop- ulace to the folly indulged in by the administration in connection with its foreign trade hodgepodge. Under leave to extend my remarks I should like to have included in the Rrc- ORD an editorial from the columns of the Catholic Transcript, Connecticut, of April 20, 1950, which sets forth some vital thoughts on this subject and cer- tainly warrants wide and attentive pe- rusal: ABSURD AND INTOLERABLE On Sunday the New York Herald Tribune publicized a situation which for some time has puzzled and troubled citizens of Con- necticut. The metropolitan paper took a look at the city of Danbury, so many of whose people depend for their livelihood on the hat-making business. That business is not flourishing just now, with the result that large numbers of Danbury residents are either wholly unemployed or employed but part time. The effect of this condition is felt by the entire community and indeed has State and national repercussions, so close-knit is our economy. One of the most frequently cited and strongly stressed causes of the unemploy- ment in Danbury is unfair competition from hats made in Communist-run Czechoslo- vakia. These are brought into the United States in great quantity and undersell the domestic products. Where Danbury-made hats are priced to New York milliners at $25 to $30 a dozen, hats from Czechoslovakia are available to these milliners at $15 to $20 a dozen. And where hat imports from Czechoslovakia were in the amount of almost $41,000 in 1946, they jumped to the amount of almost $1,200,000 in 1949—an astronomical increase. It is notorious that, wherever the Commu- nists are in control, slave labor is the rule. This has been proved beyond the possibility of refutation: That slave labor is a funda- mental and permanent feature of Commu- nist economy, the very basis of that econ- omy. The hats from Czechoslovakia can be sold for so little because made by captive and exploited labor. It is equally notorious that the warfare to the death which the Kremlin, with mastery over Czechoslovakia, is waging against the west and principally against the United States as the mainstay of the west, is ruthlessly fought with every °
APPENDIX TO THE CONGRESSIONAL RECORD sort of weapon, the economic no less than the military and the political. It should, then, be just as notorious that the hats dumped into our market by Communist-run Czechoslovakia are a potent weapon for the Kremlin. How? For one thing, the sharp decline in employment in Danbury means a sharp de- ciine in taxes collected by the Federal Gov- ernment; for exemple, income taxes. Taxes, that is, which are urgently required to fi- mance the expensive programs both for na- tional deZense and for economic and arms essistance to the European nations on which we depend for containment of the Commu- nist tide. Cudgel our brains though we will, we cannot see the tiniest grain of common sense in taking bread and butter out of the mouths of Americans and drying up a source of much needed Federal revenue, in order to give dollars to a member of the iron cur- tain bloc which aims at our defeat and ex- tinction. This strikes us as a roaring ab- surdity. For another thing, it is the dearest wish of the Kremlin that there be depression and discontent in the United States. Some meas- ure of the first can already be seen in Dan- pury. The second is not yet noticeable on any big scale. But it could easily and quickly develop. Why anything of the sort should pe tolerated when it stems from a readily curable condition of benefit only to the Kremlin, we cannot make out. It is a baf- fling mystery. Danbury’s troubles may not be exclusively attributable to the importing of hats from a Communist-run country, which is in effect an enemy country in the cold war, but they are unquestionably in part attributable to it. Sanity requires that this condition he righted, and at once. The Guatemala Problem EXTENSION OF REMARKS OF HON. JOHN W. McCORMACK OF MASSACHUSETIS IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. McCORMACK. Mr. Speaker, under leave to extend my remarks in the REeEcorD, I include the following editorial from the New York Times of April 16, 1950: THE GUATEMALA PROBLEM Guatemala, one of the three problem chil- dren of the Caribbean who are already under formal reproof by the Council of the Organ- ization of American States, has chosen to call attention to its backward political affairs in a curiously (and one would suppose un- necessarily) dramatic way. The American Ambassador, Mr. Richard C. Patterson, Jr., arrived in Washington at the end of March for a medical examination. It then appeared that some days before Guatemala had asked for his recall; the request had been an oral one, delivered through the Guatemalan Am- bassador in Washington, without bill of par- ticulars, and in what has been described as a friendly manner. But it was surrounded with rumor and allegation—that Ambassador Patterson’s life was in danger, that he was interfering in domestic politics, that he was conducting a defamatory campaign against Guatemalan institutions, and so on—all seemingly generated out of the hot politics of Guatemala’s current presidential ma- neuverings. The State Department has properly and gravely rejected these unsusvained oral — representations; the Embassy at Guatemala City remains in the hands cf a competent chargé and Ambassador Patterson remains, ostensibly at least, in the hands of the doctors. But American opinion, meanwhile, may well have been stirred to take a look at the Guatemalan institutions which the Ambassador is said to have attacked. It may, for example, look up the recent series of articles in which Mr. Fitzhugh Turner, a corretpondent for this newspaper, described what is actually going on there. It was a reasonably complete and convincing picture of a small and potentially enormously wealthy country in the hands of a group of Leftist politicians, who have allowed their ranks to be heavily infiltrated by Commu- nist sloganeers if not actually Moscow Com- munists, working up a fine little dictator- ship of the officeholders on the well-tried basic recipe of battling Yanqui imperialism. Along with this there goes an amount of assassination, filibustering and armed revolu- tion which one once associated only with “banana republics” and which would seem to return Guatemala to that invidious and elsewhere forgotten classification. The United States could, of course, react against the insults which President Arevalo’s regime, adopting the manners and the vocabulary of the Kremlin, has been flinging in this direction. We could dismiss the Guatemalan Ambassador, close our embassy in Guatemala City, remove the numerous missions which are trying to bring economic and educa- tional progress to the little country, and so on. It is doubtful whether the situation either calls for or would be served by such a course. The Guatemalan regime is convict- ing itself sufficiently of backwardness and rudeness; and it is hardly necessary for the United States to provide its politicians with the electoral issues for which they seem so eager. The Organization of American States is certainly competent to deal with any practical issues that may arise. If the Guatemalan politicians meanwhile want to conduct themselves like a “banana republic” then a “banana republic’ is what their country will become. Regulatory Madness EXTENSION OF REMARKS HON. LYNDON B. JOHNSON OF TEXAS IN THE SENATE OF THE UNITED STATES Tuesday, April 25 (legislative day of Wednesday, March 29), 1950 Mr. JOHNSON of Texas. Mr. Presi- dent, during the recent debate in the Senate on amendments to the Natural Gas Act, much was said about the role New England will play in the future of the growing natural gas industry. Recently the Boston Herald, one of the outstanding newspapers of New England, published a very persuasive editorial dis- cussing the fate of the Kerr bill. I ask unanimous consent that this editorial be included in the Appendix of the Recorp. There being no cbjection, the editorial was ordered to be printed in the REcorp, as follows: REGULATORY MADNESS . President Truman by his veto of the Kerr bill declares for price control of natural gas. We shall soon have price control of coal. But while gas is to be controlled down, coal is to be controlled up. The Kilgore bill would prop prices for soft coal, The Kerr A2983 bill veto will permit the Federal Power Com- mission to hold down the price of gas. Two competing fuels, one regulated up and the other down. Has Mr. Truman taken the right road to cheaper natural gas by his veto? Has he frustrated the wild plans of Oklahoma and Texas multimillionaires to live off 12,000,000 housewives with scanty pocketbooks, as the “liberal” Senator DoucLas contends? We cannot believe anyone who says he cer- tainly has or he certainly hasn’t, for the eco- nomics are not that simple. But here are a few facts that make Mr. Truman’s position setm more glittering than sound. The price of natural gas, like oil and coal, is now unregulated. The FPC regulates the pipe lines that carry the gas and atso the companies that both produce gas and operate the lines. Bui the 86 percent of the gas that is produced by the independent companies has been unregulated, and the Kerr bill would have insured that it remained so, against an evident intention of the FPC to take over control. So, if Congress sustains the veto, as seems likely, we shall have all gas going into interstate commerce regulated. Mr. Truman fears a monopoly because once @ pipe-line company builds to a gas field it has to take the prices set by the owner of that field, since pipe lines can’t be shifted easily. Result, he implies, would be rocket- ing prices. But someone didn’t fully inform the Presi- dent. No company spends millions building a@ pipe line to a gas field without making certain that the price of gas won’t get out of hand. They aren’t that simple in the industry. They maxe long-term-price con- tracts, and most gas today is already under 25-year agreements. ‘The President is naive in thinking otherwise. Competition is further limited, the Presi- dent says, by the concentration of owner- ship of gas. It happens that 35 companies control 70 percent of the known reserves, and that among them are these horrible aggregations of capital—Standard Oil and Phillips Petroleum. (Horrible to the lib- erals.) But even if a single corporation held 70 percent of the reserves, it would still have to set a price that would lure consumers from the fuels they now use. It is like the monopoly of the railroads that no longer exists. In fact, Mr. Truman’s veto may have exactly the cpposite effect he intends. It takes heavy capital to find productive gas fields, risk capital, for the danger of loss is great. Risk capital is scarce today, and the standard 6-percent return that regulatory agencies usually allow isn’t enough to attract very much. ; We now have known gas reserves for 30 years at the present rate of consumption, In 1955 the increased consumption will re- duce those reserves to 9 years’ supply—unless a sufficient incentive exists to expand ex-~ ploration and production programs. The oil industry, without price control, has kept about 13 years’ supplies in sight for the last 20 years, due to the operation of economic laws Mr. Truman would repeal. Control in gas is likely to mean less gas and higher prices. Less gas, incidentally, for national defense. But whatever will happen by the Presi- dent’s veto, this passion for regulation is driving us into a kind of economic madness. If we keep coal prices up and gas prices down, what shall we do with oil? Already some of the oil companies with byproduct gas to sell scent a move in their direction, and they may deem it cheaper to burn their gas off than sell into regulation. If the gas price is kept down, the sick coal industry will have to turn up its toes, for price mini~ mums won’t save it. ‘e may as well make our choice now, either we stop our drift into regulation or we must just give up and regulate everything there is.
A2984 This Nation Should Honor Lieb for His Crusade That Saved the Government Over $36,000,000,000 EXTENSION OF REMARKS HON. W. KINGSLAND MACY OF NEW YORE IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. MACY. Mr. Speaker, under leave granted to extend my remarks in the Recorp, I include the following remarks of Mr. Jack Hunter, 2 comember of Am- vet Post No. 19 in Washington with Jo- seph Lieb, and also pertinent articles which appeared in previous pages of the ConcrEssionaL Recorp. It is unbe- hievable that this great Nation has done nothing officially to honor a young man whose efforts brought about measures that saved the American taxpayers an estimated $36,000,000,000. It is a story that every citizen should know, but, unfortunately, because of greediness and jealousy the incidents behind this narration have never been fully or properly publicized. On April 12, 1945, the Washington Star carried an Associated Press dispatch stating that the War Department had officially reported to Congress that be- cause of the Renegotiation Act the Gov- ernment had saved over $36,000,000,000 in rebates of excessive war-contract profits. . Here are some interesting facts behind this untold story: Late in December 1940, Ray Henle, ace radio commentator, while he was the ‘Washington correspondent for the Pitts- burgh Post-Gazette, sent a telegram to his editors regarding a certain sensa- tional war-fraud case. Mr. Henle sent this telegram after he had a discussion with Joseph Lieb, free- lance writer, in Washington, D. C. + With the assistance of Sam O’Neal, who at that time was the Washington correspondent for the St. Louis Star- Times, later publicity director of the Democratic National Committee, the matter was brought to the attention of the Department of Justice. ! On January 4, 1941, they made their first call upon the Attorney General, Robert Jackson, now a member of the Supreme Court; Wendell Berge, then Assistant Attorney General; and other Department officials. This was followed up with other calls to the Department on January 9, 14, 15, 16, and 23, 1941. Nevertheless, the Jus- tice Department refused to take any ac- tion on the case at that time. When these negotiations proved fruit- less Lieb sent the following letter to every Member of the United States Sen- ate in the hope of bringing the case out into the open, The message read: January 6, 1941. Myr Drak Memser or Concress: Several days ago I conferred with Department of Justice officials relative to profiteering and frauds in defense and war contracts, The Washington correspondent of the St. Louis Star-Times assisted me in prerertirg amaz- ing evidence in connection ¥.th vhs matter. It is becoming increasingly evident that the Congress should set up an investigating committee to watch over possible frauds against the Government, and I trust that you will give this suggestion your careful consid- eration and attention. Should you care for further information, please advise. With many thanks, Very truly yours, JOSEPH LIEB. Then Lieb followed this letter up with personal calls upon a number of Sena- tors, including Harry S. Truman, now President of the United States. Five weeks later—and this is impor- tant—on February 13, 1941, Senator Tru- man introduced his resolution calling for the creation of a defense investigating committee. This measure was approved by the Senate on April 1,1941. Mr. Tru- man immediately became chairman of the committee that was soon to sky- rocket him into national fame—into the Vice Presidency and then into the White House itself. With fear that the statute of limita- tions would run out on war frauds, Lieb got a bill introduced, H. R. 4916, Seventy- seventh Congress, first session, which called for the suspension during time of war or national emergency the running of any Statute of Limitations on prose- cutions for Federal offenses. This bill was introduced on May 29, 1941. He pleaded with several Members of the House Judiciary Committee, and finally on November 26, 1941, the long de- layed hearing was held. The only wit- nesses were Congresswoman Jeannette Rankin, who introduced the bill, Mr. Lieb, and Mr. Alexander Holtzoff, Special Assistant Attorney General. The Justice Department opposed this piece of legis- lation complaining that it was too broad, but on January 28, 1942, after much agi- tation they submitted to Congress, H. R. 6484, applicable only to tertain offenses. It became law on August 24, 1942, with the able assistance of Walker Stone, chief editorial writer for the Scripps-Howard newspapers. Anticipating the passage of the bill the Department of Justice created a war- fraud unit and Federal grand juries be- gan holding hearings. Mr. Lieb continued his campaign de- manding review of war contracts. The exposure of a number of cases caused the Congress to insert a clause in the supplemental national defense appro- priation bill of April 4, 1942 permitting the renegotiation of war contracts. Thus, came the savings of billions of dollars on taxpayers money. [From the CONGREssionaL RECORD of May 10, 1943] JOSEPH LIEB (Extension of remarks of Hon. StrLEes Brincss, of New Hampshire, in the Senate of the United States, Monday, May 10 (legislative day of Monday, May 8), 1948) Mr. Bripcss. Mr. President, I ask unani- mous consent to have inserted in the Ap- pendix of the RECORD, a statement regarding the activities of Joseph Lieb which have con- tributed to the war effort. APPENDIX TO THE CONGRESSIONAL RECORD Among Joseph Lieh’s contributions to the war are work on four important and signifi- cant pieces of legislation, now enacted into law. 1. His work in connection with legislation dealing with war profiteering and fraud. On January 4, 1941, accompanied by a St. Louis newspaperman, he called upon Attorney Gen- eral Robert Jackson, Wendell Berge, Assistant Attorney General and other Justice Depart- ment officials relative to the prosecution of @ certain highly connected war profiteer. Other calls to the Department were made on January 9, 14, 15, 16, and 23. The story and background of this case has never been told and must remain anonymous until after the war, But it was this episode that inspired Leib to carry on a zealous campaign against war profiteering and fraud. Because of this case he urged the necessity for the suspension of the statutes of imitations covering such matters. Over 2 period of time Lieb demanded the appointment of a congressional defense inves- tigation committee. On February 18, 1941, Senator Truman in- troduced a resolution to set up a defense in- vestigating committee. This measure was approved on April 1. : On March 31, 1941, Representatives May and Vinson introduced their joint resolu- tions setting up a committee to investigate war profiteers. This resolution has a direct bearing to the previous mentioned Justice Department interviews. This is all that can be said at this time. It was the sensational disclosures brought out by the House investigating committees that brought on the demand for the renego- tiation of war contracts. But renegotiation action did not come until April 4, 1942, when a clause permitting such action was inserted in the supplemental national defense appro- priation bill of that year. Unfortunately, none of these committees possessed punitive power other than to ex- pose and publicly reprimand. They held no other authority. Prior to the introduction of these committee resolutions Lieb pleaded for the suspension of the fraud statutes. In correspondence with many public officials he pointed out the fact that these statutes must be suspended to protect the Government’s interest in the prosecution of war frauds. When the Truman and House investigating committees were set up he reminded Mem- bers of Congress that these committees were in many instances operating to the disad- vantage of the Government insofar as the time elements of the statutes were concerned, Several months later, on May 26, 1941, a bill was introduced to suspend the statutes. Because of this the Justice Department on February 5, 1942, created a special frauds unit, and Federal grand Juries began hear~ ings on July 15, 1942. Approximately $3,000,000,000 have been saved because of this action. (Part of this story was related in the ConcrEssronaL Rxc- orD on November 12, 1942.) —— [From the CoNGRESSIONAL REcorp of Janua ‘y 27, 1947] ORIGIN OF THE TRUMAN COMMITTEE (Extension of remarks of Hon. Raymond 8. Springer, of Indiana, in the House of Rep- resentatives, Monday, January 27, 1947) Mr. SprIncER. Mr. Speaker, last week the upper Chamber of Congress debated at great length the question of whether or not the famous Senate War Investigating Commit- tee should be continued. After the debate . came to a close, the Senate deemed it ad- visable to grant this committee an additional year in order to complete its investigation of . the war period.
APPENDIX TO THE CONGRESSIONAL RECORD This committee has been in the public eye for several years, yet very few people know of the incidents that cecurred behind the scene to inspire its creation. It was this committee originally headed by Harry S. Truman that sent him sxyrocketing into the Vice Presidency of the United States and then into the White House itself. In this connection, it would seem apropos to state for the first time the genesis cf this cornmittee. The story dates back to late in December 1940, when sensational information concern- ing a highly placed defense-contract profiteer came to the attention of Joseph Lieb, free- lance writer of Washington, D. C. Lieb took this matter up with Sam O'Neal, who was at that time Washington corre- spondent of the St. Louis Star-Times—now publicity director of the Democratic National Committee—and they decided to bring the information to the attention of the Depart- ment of Justice. On January 4, 1941, they made their first call upon the then Attorney General Robert Jackson, Wendell Berge, Assistant Attorney General, and other off- cials. They made other calls on January 9, 14, 15, 16, and 23, 1941. However, the Justice Department refused to take action on this case. Nevertheless, Lieb sent the following letter to every Member of the Senate in the hope of bringing the case out into the open. The message read: JANUARY 6, 1941. My Dear MEMBER OF CoNcRESS: Several days ago I confered with Department of Justice Officials relative to profiteering and frauds in defense and war contracts. The Washington correspondent of the St. Louis Star-Times assisted me in presentiag amazing evidence in connection with this matter. It is becoming increasingly evident that the Congress should set up an investigating committee to watch over possible frauds against the Government and I trust that you will give this suggestion your careful consid- eration and attention. Should you care for further information, please advise. With many thanks. Very truly yours, JosePpH Lizs. This letter was followed up with personal calls upon a number of Senators, including Mr. Truman. Then, on February 18, 1941, Senator Tru- man introduced his resolution calling for the creation of a defense investigating commit- vee, and the measure was officially approved on April 1, 1941. Senator Truman’ imme- diately became chairman of the committee. Fearing that the statute of limitations would run on the above-mentioned case, Lieb got a bill introduced, H. R. 4916, Seventy- seventh Congress, first session, which. de- manded the suspending during time of war or national emergency the running of any statute of limitations on prosecutions for Federal offenses. This measure was intro- duced on May 29, 1941. Finally on November 26, 1941, a long-de- layed hearing was held by the House Judi- ciary Subcommittee and the only witnesses were Congresswoman Jeannette Rankin, who introduced the bill, Mr. Lieb, and Mr. Alex- ander Holtzcff, Special Assistant Attorney General. The Justice Department opposed this piece of legislation because it was too broad, but on January 28, 1942, after much agitation they sent to the Congress H. R. 6484, a bill to suspend during the present war the running of statutes of limitations applicable to certain offenses. This became law on August 24, 1942, and it was during this period that the Justice Department set up a war-fraud unit. From the exposure of a number of war contracts came the demand for the Renegotiation Act and the subsequent seving of untold billions of dollars. Neshville Sermon Said Lacking in Politizal, Relisious Realities EXTENSION CF REMARES o HON, HENDERSON LANHAM OF GDORGIA IN THE HOUSE OF REPRESDNTATIVES Tuesday, April 25, 1950 Mr. LANHAM. Mr. Speaker, under leave to insert my own remarks in the RecorD, I am including an editorial by Hedding Carter which appeared in the Delta Democrat-Times of Greenville, Miss., the Atlanta Journal, and other newspapers. The editorial is entitled “Nashville Sermon Said Lacking in Po- litical, Religious Realities.” Recently I introduced into the Recorp an editorial from the Chattanooga Times which referred to this editorial by Hodding Carter. I am introducing this column by Mr. Carter with my full approval. It follows: NASHVILLE SERMON Sat LACKING IN PoLiricat, RELIGIOUS REALITIES (By Hodding Carter, editor, Delta Democrat- Times, Greenville, Miss.) By unhappy coincidence I have read dur- ing Easter week a widely publicized sermon which in a good many respects strays as far from the philosophy of the Man whese resur- rection the Christian world celebrates today as it does from the political and economic realities of our harassed world. This sermon was preached last February by a Nashville minister. Many thousands of copies have been printed and distributed throughout the South. It is titled after, and is a sort of digest of the digest of John Flynn’s best-selling book, The Road Ahead, which warns of catastrophic end results of the social welfare state. FLYNN’S BOOK ONE-SIDED I am not concerned here primarily with Mr. Flynn’s book, There is value in it, though its usefulness is impaired by his per- sonal hatreds, the one-sidedness of his at- tack upon England and his lumping together of good Americans of different opinions than his own into one over-all inimical category. Certainly all of us should be alert to the implications of the insensate welfare state. ‘Certainly a minister has as much right as anyone to warn against national and world trends toward undue centralization of gov- ernment and the dwarfing of individual rights and individual responsibilities. But the case is not nearly so black and white as the Nashville minister makes it, nor is he fair in designating his scapegoats. I am appalled by many of his charges and conclusions. For instance, in telling of the rise of socialism in England after the birth of the Fabian Society, a Socialist group, he enumerates the results of the first Liberal- Social coalition way back in 1905. “This is when the New Deal struck Eng-~ land,” he says warningly. “Out of Parlia- ment came the 8-hour day, workmen’s com- pensation, pensions, government housing projects, public payment of election expenses. Labor was delighted * * * the camel’s head was now inside the free enterprise, democratic tent.” If the minister means that these long-ago English achievements were dangerous and undemocratic, he is talking poppycock. To the contrary, each of them when achieved strengthened rather than weakened democ-~ racy’s hand, whether in England or in the United States. A2985 Asserting that the Americans for Demo- cratic Action “is about as democratic es Stalin,” ke bases the libelous charge on the fact that its membership includes men like David Dubinsky of the A. F. of L., Walter Reuther and James B. Carey from the CIO, Elmer Davis, Leon Henderson, Justice Doug- las and Senator Frank Graham, the notable former president of the University of North Carolina. And more poppycock, “A social planner in Washington differs not at all from one in Moscow or London,” he proclaims. “They are all Socialists and therefore enemies of the basic liberties of men.” What he is saying, in effect, is that the courageous, freemen of the Socialist coun- tries of Hurope who live dedantly under the very guns of Soviet Russia are no better than the Red enemy against whom they stand allied with us. Were the Socialist Norwe- gians enemies of the liberties of men, those Scandinavian fighters who died while we in America prattled? Are the Socialist Swedes such enemies? And are social planners as such, enemies of the people simply because they dream of directed progress?. Thomas Jefferson hada plan. So did Abraham Lin- coln and Woodrow Wilson. Social planning does not necessarily mean socialism, and socialism, freely and democratically entered upon, does not spell communism. DEATH BY THE H-BOMB And one incredible sentence: “I would per- sonally rather see my nation die cleanly un- der the H-bomb than rot away under so-' cialism.”” This statement may make a big hit in some quarters, but not among people who have seen nations almost die under bombs; whether H or A, or just plain bom«érs;! not among those who have seen war-crushed. nations struggle to rise again in the only way they could—through government-directed action for which no private alternative ex- isted. God grant that we never have to so rebuild; for if that dreadful day ever comes, there will no longer be anywhere else a more fortunate people, like ourselves today, who from a place of privilege and security can sneer at such collective effort as being so- cialistic, ' It is sad that such words should be spoken upon a Sabbath or on any other day. It is sadder and more dangerous to American solidarity that its devisive message should gain such wide distribution. And it is sad- dist of all to recall how long ago it was that a Man moaned a broken-hearted prayer from @ cross, asking His Father to forgive those who knew not what they did. Congress Should Set the Example EXTENSION OF REMARKS Lo) HON. CLARE E. HOFFMAN OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Friday, April 21, 1950 Mr. HOFFMAN of Michigan. Mr. Speaker, for most of the time during the past 2 weeks the House has been debat~ ing the one-package appropriation bill which calls for a total of $38,859,000,000 to operate the Government during the coming fiscal year. War with Russia is threatened. It is extremely difficult, if not impossible, for a bankrupt nation, a nation with un- sound financial policies, to win a war, but there seems little disposition on the part
£2286 of the administration, or of the Congress, to put our financial house in order. That the people want less Federal spending, that they want greater efficien- cy from those who hold public office, has teen shown by the public support of the recommendations of the Hoover Com- mission. That very few, individually, are will- ing to economize or to do more work for the same amount of money is shown by the opposition to practically every plan submitted to the Congress which promises either greater efficiency or economy but which adversely affects the individual. Unfortunately the President, taking advantage of the present situation and of the demand for less Federal spending and a little more efficient service by Fed- eral employees, has sent to the Congress some 21 reorganization plans. Taking advantage of this situation, the Hoover label has been pinned on all of these reorganization plans, although some of them do not even promise either efficiency or economy. The reorganization plans submitted by the President have been sent to the Committee on Expenditures in Executive Departments, on which I am the rank- ing minority member and of which, dur- ing the Eightieth Congress, I was chair- man, So far, whenever any of these plans which would give us a cut in personnel, require more work or a cut in compensa- tion of Federal employees, has been pre- sented, there has been vigorous and sometimes bitter opposition. Usually, the group appearing in opposition to any particular plan advocates the adoption of reorganization which will give econ- omy and efficiency in the other depart- ments but argues that reorganization in connection with the agency in which the witness is interested would be bad. Recently, information was given the Congress that, during the current fiscal year—and the current year is classed as a prosperous year—we will be spend- ing at least five, some say almost seven, billion dollars more than the Govern- ment takes in. That situation is not only an absurd, but it is a dangerous condition. Espe~ cially is this true when some in au- thority are following a course which may involve us in a war before the year is over. Remembering how we got into the last two wars, what war costs, not only in dollars and natural resources but in suffering and in death, and in justifiable payments to veterans, it would seem as though those in authority who are di- recting our foreign policy, would have the good sense to follow a course which would keep us out of war. That, lacking that good sense, judgment, and determi-~ nation, they would, at the very least, set our financial house in order, cut out the unnecessary expenditure of every dollar; make every possible saving in order to strengthen our defense program. Long ago someone said that charity should begin at home. Inasmuch as this Nation must economize if it is to avoid disasier, it is my opinion that the people’s Representatives should cet the example by the adoption of an economy program which wculd aect all Federal employees and offee holders. Then they can right- fully and with good grace ask that others do likewise, take less instead of asking for more, work longer, work more effi- ciently, insiead of demanding higher compensation, then loafing on the job. A nation which continues wasteful and unnecessary spending, lowers the standard of production, permits a few individuals to paralyze essential indus- tries and, on occasion, by strikes threaten the health, safety, and welfare of the whole nation, cannot hope either to win world war III, or, even if there be no war, continue prosperous and secure. Poxt and Playground of the Soutivest EXTENSION OF REMARKS oF HON. LYNDON B. JOHNSON OF TEXAS IN THE SENATE OF THE UNITED STATES Tuesday, April 25 (legislative day of Wednesday, March 29), 1950 Mr. JOHNSON of Texas. Mr. Presi- dent, I ask unanimous consent to have printed in the Appendix of the Recorp excerpts from an article entitled “Port and Playground of the Southwest” which appeared in the April 12 edition of the Houston Chronicle. This article, written by Mr. Don Hinga, gives an account of one of the most his- toric and colorful spots in Texas, Galves- ton Island, and of the people who figure largely in Galveston’s place in the South- west. I recommend it as a subject for enjoyable reading. There being no objection, the excerpts from the article were ordered to he printed in the Rrcorp, as follows: PoRT AND PLAYGROUND OF SOUTHWEST (By Don Hinga, Chronicle roving editor) GaLVESTON, April 12.—Steeped in history, with an impressive list of firsts, an island of gracious living and mighty industry, Gal- veston proclaims to the world that it is the “Port and playground of the Southwest.” There is no better way to sum up Galveston than that phrase. You hear a lot of talk about the free State of Galveston, because its people have a knack of living and let live that makes the typical Galvestonion feel that there is no better place on earth to reside. Drive around its oleander-bordered streets and you find plenty of evidence of this gra- ciousness in the many beautiful old homes built during the past century. Take a tour in the older section of down- town. Galveston and you notice fine carvings on the doors and windows of old business establishments that further carry out this idea of beauty. POPULATION GAINS The city of Galveston covers 7.8 square miles and its population of approximately 80,000 shows a gain of 20,000 over the 1940 census count of 60,682. Backbone of the industry that flourishes here is the sprawling waterfront whose 37 piers afford space for handling 45 Liberty- APPENDIX TO THE CONGRESSIONAL RECORD type vessels. Its 385 warehouses have over 5,000,000 square feet of floor space and its three giant grain elevators can store 7,500,000 bushels of grain. The port of Galveston is the largest sul- fur shipping port, in addition to handling vast quantitites of cotton, rice, raw sugar, ores, and concentrates and other products. To give an idea of the teeming wharves, Galveston during the year ending December 831, 1949, shipped more grain than all the Gulf of Mexico ports combined, a total of 110,218,- 041 bushels. Its total vessel traffic was in excess of 6,000,000 tons each for the years 1947-49. THORNTON RUNS DOCKS Two years ago, the city of Galvesten tcok over the wharves, which are operated by E. H, Thornton, as vice president and general man- ager. Thornton began his career with the Southern Pacific Railway in Houston. A picturescue part of the water front that draws thousands of vacationists is the mos- quito fleet of shrimp and fishing boats that take off with the dawn, to return heavily laden. Galveston offers the sports fisherman 51 types of edible salt-water fish. Largest private industry in Galveston is the American National Insurance Co, largest in the South, with some $300,000,000 in insurance on its books. Today, it is presided over by W. L. Moody, Jr., now in his eighties, who has spread an industrial and financial empire from Gal- veston Island until it reaches over the Na- tion, embracing panks, the national hotels, lands, and other properties. MOODY IS RICH MAN Moody is said to be one of the 10 richest men in Texas, but still keeps a tight hand on the reins of his business empire. From his office in the American National Building, whose walls bear a large copy of the famed painting, the Gay Philosopher, Moody tells an interesting but brief story of how he got into the insurance business. “Flow does a man get started in such a vast business?” he was asked. With a wave of his hand and a twinkle in his eye, Moody replied: “I was standing on a corner on Strand Street many years ago and two friends came up and asked me if I wanted to make some money. “They had an idea of going into the in- surance business and I said that I always liked to make money and so I did.” The growth and building of Galveston is tied up with the growth and expanding enterprises of several Galvestonians in addi- tion to the Moodys. FOUR KEMPNER BROTHERS They are the Kempners, the Sealeys, the Hutchings and others who pyramided profits from warehouses and compresses and other water-front firms into empires that reach out over the United States. The four Kempner brothers, Stanley, R. L., D. W., and I. H., have contributed mightily to the building of Texas as well as their native Galveston. Their father, Harris Kempner, a Polish im- migrant, worked as a day laborer to get to- gether his railroad fare to Texas, opened a store In Cold Springs, fought in the Con- federate Army and moved to Galveston fol- lowing the Civil War. When he died in 1894 he had put together “The House of Kempner,” with interests in all parts of the State. So diversified was his career that the Kempners either bought, built, or operated eight Texas railroads, started irrigation projects all over Texas; organized banks in a dozen Texas towns. BUILT HOTEL GALVEZ The first rice for commercial purposes was planted on a Fort Bend County plantation of
APPENDIX TO THE CONGRESSIONAL RECORD the family, they built the Galvez Hotel, own the Sugarland Industries outright and seven- eights of the stock in the Imperial Sugar Co. Their compress and warehouse properties in Galveston comprise 815 city blocks. The eight members of the House of Kemp- ner, four trothers and four sisters, Mrs. Hen- ry Gppenheimer, San Antonio; Mrs. L. A. Adctex, and Miss Gladys Kempner, of Gal- veston, and Mrs. D. F. Weston cf Cincinnati, have made no partition of the family’s wealth down through the years, except divi- sion of profits from the many enterprises. All differences of opinion have been settled by majority rule. Their business activity has been matched through the years by a contribution to civic affairs. I. H. IS ELDER STATESMAN I. H. Kempner, the elder statesman cf the clan, served as commissioner and mayor of Galveston and is credited with pulling the city out of the financial crisis that fcllowed the i900 storm when 7,500 persons Icst their lives in hurricane winds and tidal waves. In fact, I. H. Kempner and Rabbi Emeritus Henry Cohen are the only two surviving members of the storm relief commission. The saintly Rabbi Cohen and the late Bishop Christopher Byrne have been the spiritual inspiration for the city for many years. Throughout a life of selfless service, Rabbi Cohen has attained many honors. Fresident Woodrow Wilson called him Texas’ greatest citizen and the late Dr. Stephen Wise de- scribed him as one of the 10 outstanding religious leaders of the Nation. RABBI IS SCHOLAR A scholar who reads Hebrew and Arabic, French and German and Spanish, the rabbi has a simple philosophy. “From the best in religions I try to take my philosophy of life,” he says. “I would as soon preach on a text from Confucius as the Talmud if the truth is there.” Last September, when the rabbi retired after 61 years in the rabbinate, Eishop Byrne said: “My old friend, Rabbi Cohen, is the best example of real humanitarianism I have ever seen. I have seen him in every room and at every bed in our hospitals. He brought mes- sages of cheer and hope to all, regardless of race, color, and creed. He never asked who it was, but whether there was a need to fill.” The late Bishop Byrne, who administered the affairs of the Galveston Catholic Diocese in some 80-odd Texas counties, had a ready wit and an Irish brogue that was the delight of his thousands of friends. AN AULD BARRACKS A few days before his death, I talked with him about the Bishop’s palace, one of the finest homes in Galveston, built by Col. Wal- ter Gresham, lawyer and Congressman over half a century ago, at Fourteenth and Broad- way. “It’s an auld barracks,” the Bishop said with a twinkle in his eye and then proceeded to linger lovingly over the details of the three-story mansion. He told of the five kinds of stone and mar- ble that went into the home, of the carved lilies and birds on the doors and windows, the three different dates that are carved into the marble, of the griffon motif found through the house. On the first floor there are five different Kinds of wood in five rooms, oak, walnut, red and white mahogany, and pine, and how the work was so thoroughly done that there is not a crack in the lining up of the woodwork, ARTIST OF NOTE Mrs. Gresham was an artist of note and painted murals on the dining-room ceiling, tacked canvas on the wells of other rooms and adorned them wiih paintings, end m the basement covered the walls with marine scenes and merine-lie pictures. The heme was a long time in being built for Gresham, as the bishop said, would have a flash of beauty in the day or night and tear out parts of the house and build them anew. Another famous cld home in Galveston is the home of El Mina Temple of the Shrine at 2328 Broadway. Buult by Capt. J.M. Brown, a brick mason by trade who amassed a for- tune in cotton, shipping, and other interests and put a fortune into his home, a show place for almost a century and the oldest brick home in Texas. CARVED IN PARIS Walnut in the velance crowning the win- dows was carved in Paris, and French arti- sons came to adorn the ceilings with friezes and panels in gold leaf. His daughter. Mics Ret~ Brown, was also an artist andi °. 5 .i.* there still hang tapesiries she «©. 24 .i 22 statuesque ladies in flowing robes. When Galveston surrendered to Gen Gor- don Granger and his Northern troops on June 18, 1865, the Confederate commanders laid their sheathed swords on a table in the gilded parlor and the trans-Mississippi Department of the Confederacy was at an end. The Sealy home at Twenty-fifth and Broad- way was designed by the celebrated architect, Stanford White, later Killed by Harry K. Thaw in New York. It is another show- place, rich in history and beauty. DAY OF ELEGANCE All over Galveston you can find homes that have a touch of old New Orleans de- signs, grilled ironwork and cornices and cu- polas of a bygone day of elegance. One of the outstanding institutions in Galveston is the University of Texas Medical School, with an able faculty headed by Dr. Chauncey Leake, rationally Known phar- macologist, the John Sealy Hospital, one of the best in the South, is another example of philanthropy of the builders of Galveston, the Sealy family. Henry Rosenberg, another pioneer and early day mayor, has left his imprint on Galveston with the 150,000-volume Rosenberg Library and monument to the Texas heroes of the Revolution, a church, orphans’ home, home for aged ladies, and a YMCA building. WATER FOUNTAIN He also installed water fountains and troughs throughout the city, where thirsty humans and animals could slake their thirst. Rosenberg was president during the con-" struction of the Gulf, Colorado & Santa Fe Railway, one of the most potent sources of revenue to Galveston through its $4,000,000 annual pay roll to the 1,000 Santa Fe workers in Galveston. Others who took part in organization of the railway, which operates over 4,000 miles of trackage in Texas, included John Sealy and nephew George, Leon and H. Blum, W. L. Moody, J. H. Hutchings, R. 8. and P. J. Willis, to name a few. Galvestonians have been getting the news of the world from the same source for over a hundred years. The Galveston News, known as “The Old Lady of Mechanic Street,” is the oldest newspaper in Texas, having peen founded in 1842. It is ably managed to- day by David Leavell, also president of the Galveston Chamber of Commerce. Every year about this time, the Greater Galveston Beach Association starts beating the tom-toms for its Splash Day, heralding - the opening of the summer swim season. This year it will be held on May 7 and Drum Beater Christy Mitchell is telling all and sundry of the Texas Fiddler’s Association A2987 annual meeting, which will be held on Splash Day, the hill billy jam season from ncon to midnight, the coronation of King Neptune and his bathing beauties from all over the Southwest, 5-mile swim race in the Gulf, giant air show and a lot of other attracvions. GAY PLAYGROUND Then it is that Galvestonians go all out to welcome the vanguard of the thousands who will dot the smooth white beaches with gay umbrellas, put up tents to stay overnight, crowd the midway attractions, kids will dig in the sand, and the old island that was once the headquarters of Pirate Jean Lafitté gets its gay title of “Playground of the Southwest.” Goverzzrs Speak Up on United States Taxes EXTENSION OF REMARKS OF HON. FREDERIC R. COUDERT, JR. OF NEW YORK Til] THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. COUDERT. Mr. Speaker, under leave to extend my remarks, I include an exceedingly interesting article published in the New York Herald Tribune on April 23 and 24. On March 29, 1950, I intro- duced H. R. 7904, for the purpose of es- tablishing a commission to “investigate and make recommendations with respect to the distribution of governmental func- tions and sources of revenue within the framework of our Federal, State, and Iccal systems of government.” Follow- ing the introduction of this resolution the New York Herald Tribune undertook a survey of the opinion of governors on this subject. This article is the result. The views expressed by the governors should alone be sufficient to persuade any doubting Member of this House of the importance of instituting such a tax sur- vey as is proposed without further delay, GOVERNORS SPEAK UP oN UNITED STATES TaxES—CALL FOR STUDY OF OVERLAPPING REVENUE FIELDS (By Robert S. Bird) (This is the first of two articles based on a@ poll of governors on current issues involv- ing taxation and other relations between the Federal and State Governments.) t Most State Governors replying to a New York Herald Tribune poll believe that the growing conflict of responsibility between the Federal and State Governments urgently calls for high-level study on a nonpartisan basis, Some governors are worred about vast sums of money they say are being wasted now. Others see the entire Federal system as imperiled by the Federal invasion in State government. They want Congress to act forthwith on proposals before it to set up an inquiring body composed of Senators, Representatives, and governors of both major parties. This group would analyze the whole tangle of divided functions in National and State housekeeping and find ways for ending the evils. i Many of the governors especially deplore | the overlapping of taxation that compels citi-~ zens in some places to pay duplicate and even
A2988 triplicate levies on everyday goods and serv~ ices. These governors demand a broad re~ vamping of the tax structure—even to dix viding up between the two kinds of govern- ment exclusive rights to collect different taxes. Some governors put the blame on the Fed- eral grants-in-aid system, a comparatively new development in American Government. This is the device whereby the National Gov- ernment collects enormous sums in taxes in the 48 States and redistributes part of it through some 25 major public services such as aid to education and health, old-age and unemployment benefits. The Federal Gov- ernment sets up its own standards and ad- ministrative requirements for these and usually makes ito S...c= match the Federal funds with an equal amount of their own money. A few of the governors defended this aid system as a boon to State government, but others vigorously denounced it as a bureau- cratic swindle, robbing the States both of their money and their right to self-govern- ment. Twenty-nine governors replied to the Herald-Tribune poll. This asked, first, if they believed their States were getting a fair share of the Federal tax money collected from them; second, if they felt a segrega- tion of tax sources was needed, and if so, how 1% should be made, and third, they were asked to make any other suggestions on the subject. Nineteen governors said either that a thoroughgoing study of Federal-State re- lations was needed, or that they awaited such a study before forming an opinion. Thirteen said that a segregation of tax sources should be made, so that the Federal Government could have certain taxes ex- clusively for itself in return for keeping hands off other taxes that would be reserved ex~ clusively to the States. Seven govevners said their States are not getting a a s'isre of the Federal money collected from them. Four said they were satisfied with the return. Seven offered no comment, sending word that they were not prepared, or too busy, or absent from their casitols. In general, the replies dealt with two inter= twined aspects of the problem—one, the waste, unfairness, or fairness of the tax mechanisms; the other, the pros and cons of grants-in-aid and its effect on State govern- ment. The divided opinions cross party lines to a greater degree than sectional lines, Taking up the grants-in-aid aspect first, a majority opinion was expressed in the reply of Gov. William Preston Lane, of Mary~ land, @ Democrat, and chairman of the National Governors’ Conference. He pre- sented the conference’s view to the last ses- sion of Congress. He said the first large-scale grants-in-aid program was started in 1914, with the agri~ cultural extension act, and they have since increased until today a third of the total cost of local government is borne by the States, and about 20 percent of the cost of State covernment is paid by the Federal Coccrmssisn . reser. i grants to States have jumped from $5,000,000 in 1910 to more than $2,000,000,000 today. “This method, in operation, has extended public services throughout the country * * * has been responsible for establishing certain minimum standards of service * * * has raised standards of administration in many public services, and it has providec. for some redistribution of resources from the States that have superior means to those that lack them,” Governor Lane said. “On the otherhand * * * grants-in-aid has removed large areas of discretionary power from the localities and transferred them to the States, and from the States to the National Government.” Gov. Alfred E. Driscoll, Republican, of New Jersey, replied: ‘‘We are losing self-gov- ernment in America and destroying our Fed- eral system by the continued expansion of a pernicious system of so-called grants-in-aid.” Saying there is no question that all Ameri-~ cans want the best in public services, he as- serted tia “ti queston before the Nation is whetne.s we ..9 to have one or more agen-~ cies cf government responsible for these services—each with a different administra- tive staff, each levying taxes for the purposes c* -vonortinc the services, divided respon- foe owe -*, the inevitable conflicts that arise from divided responsibilities.” Gov. Thomas HE. Dewey said that the amount of taxes taken from New York State by the Federal Government “has increased more than five times over and is currently more than eight times as great as the total of State taxes.” “This,” he warned, “is a very efiective way for the Federal Government to impair the sovereignty of a State and deprive it of the finances with which to meet its own ming en ‘Ine more conservative view was given by Gov. Adlai E, Stevenson, Democrat, of Illinois. “All of us have profited from the Federal aid programs, but we all know that there must be some limits to extension of Federal aid,” he said. “Those limits may well be determined by the taxpayers’ pocketbooks more effectively than by frightened procla- mations of States’ rights.” Gov. Chester Bowles, Democrat, of Con- necticut, defended the Federal aid program while agreeing a thorough review of tax relations is needed. “The Federal Government exercises many of its present powers (and levies taxes to pay for them) simply because the States in gen- eral are unable or unwilling to provide basic services which a majority of the people be- lieve are essential to their welfare,” he said. GovERNoRS CHARGE UNITED Srates Tax GraB To FINANcE WIDENING FUNcTIONS—-Sre STATES AND CITIES IN SCRAMBLE FoR WiatT’s Lerr—SoMe WovuLpD TRADE FEDERAL AID FOR CERTAIN LEVIES (By Robert S. Bird) (This is the second of two articles based on a Herald Tribune poll of governors on current issues involving taxation and other relations between the Federal and State Gov- ernments.) The biggest complaint by State governors in their current fears over Federal encroach-= ment on State government centers around the Federal grab for taxes, a New York Herald Tribune poll shows. Taxes are caught in an ever-expanding vicious circle. The Federal Government is steadily widening its tax base year by year to finance its always extending functions, and the States and localities are left to el- bow each other in a race for what’s left. Most of the governors who replied to the Herald Tribune poll on Federal-State rela- tions said the time has come for the National and State Governments to stake out agreed and exclusive areas of tax sources, ‘WOULD TRADE AID FOR TAXES A number of governors said their States would gladly forego a good measure of Federal aid if they could have certain taxes—say gasoline, amusements, or excises—all to themselves, without Federal interference. Then they would handle their own aid pro- grams, they said. No State in the Union is getting back in the form of Federal aid the equivalent of the Federal taxes collected within its borders. Some less-wealthy States are getting propor- tionately greater benefits than the prosper- ous States, but these complain just as loudly as the others. In the South, Gov. J. Strom Thurmond, Democrat, of South Carolina, said “the tax APPENDIX TO THE CONGRESSIONAL RECORD system is a hodgepodge of overlapping dupli- cation and injustices,” and asserted that “if the usurpation of tax fields by the Federal Government continues unchecked it will in- evitably turn our States into mere subdivi- sions or departments of the Central Govern- ment.” He demanded a return to the States, exclusively, of all automotive tvenencrt tax sources, including 2colin c. ‘. and tubes, together with che acuus 2.01. taxes. Gov. Herman EH. Talmadge, Democrat, of Georgia, said the Federal Government should leave to the States the excise and license taxes, and he attacked the Federal require- ment cf States to match Federal funds for grants-in-aid. “Grants-in-aid should be based on the need of the individual State rather than its economic ability to match available Federal funds,” he said. “My answer is ‘No’,” Gov. James H. Folsom, Democrat, of Alabama, said to a question whether Alabama was getting a fair share of Federal taxes. SEES GOOD GOVERNMENT GAIN Gov. John S. Battle of Virginia, another Democrat, said “the cause of good govern-~ ment would be benefited by the Federal Gov- ernment’s withdrawal from many fields of activity, leaving these to the States, which could more properly and efficiently adminis- ter them.” In New England, Gov. Sherman Adams, Republican, of New Hampshire, said his State’s share of the Federal tax return seemed to be “unfair in certain instances such as education, river and harbor development, flood-control, and public-power projects,” and he advocated giving excise taxes to the States in return for letting the Federal Gov- ernment have the income tax. ' In the Middle West, Gov. Frank J. Lausche, Democrat, of Ohio, complained that the Na- tional Government “has ~reometed mort cf the flelds” and said Ohio isu. av 207 CUD in gasoline taxes alone tu vie lecu.e Cure ernment but is getting back only $18,000,000. “Towa is not receiving its share of Federal aid,” Gov. William S. Beardsley, Republican, reported. He said “the field of gasoline taxa. tion shoudl be preempted to the State’ for road-bullding purposes. Concurring in this view, Gov. Oscar Renne~ bohm, Republican, of Wisconsin, also said the National Government should yield to the States, at least in part, the tobacco and amusement taxes and keep for itself the auto- mobile excises. He pointed out that Federal taxes in Wisconsin have increased by 1,600 percent over 1928, compared to a State-tax increase of 400 percent and a locality-tax Jump of only 50 percent. URGES TAX-SOURCE SEGREGATION Speaking for the Northwest, Gov. Douglas McKay, Republican, of Oregon, also demanded the gasoline and admission taxes for the States, and in neighboring Idaho, Gov. C. A, Robins, Republican, said segregation of tax sources and “revision in all areas are neces~ sary.” Gov. J. Bracken Lee, Republican, of Utah, found “there is no fair share left after the Federal Government gets through paying its army of employees who administer these (Federal aid) funds.” 4 Acknowledging that South Dakota is re< ceiving a fair share of Federal tax money,’ Governor George T. Mickelson, Republican, complained that “too much of every Federal tax dollar, regardless cf its source, is used in Federal acnuis' raise expense; we send in a dollar and it comes back sixty-~odd cents.”, He suggested this as a solution: “Generally speaking, to every extent pos~ sible and feasible, the area of government which renders the service should levy the tax and collect the revenue to provide for it.” Gov. Lee Knous, Democrat, of Colorado, said: “The solution is most difficult because,
APPENDIX TO THE CONGRESSIONAL RECORD of the diversity of the types of taxes upon which the various States rely for basic revenue.” “The principal source in some may be the " income tax; in others, sales taxes; and in others, ad valorem taxes. Each of these sys- tems has a historical background which has developed a delicate adjustment between the State and its local governments and subdivi- sions, and which cannot be abrunitly disturbed.” GASOLINE TAX FOR STATES But he advocated generally leaving gaso- line taxes to the States, and possibly estate and gift taxes and luxury and admission taxes. Governors of two desert States expressed concern over the Federal highway program. Gov. Vail Pittman, Democrat, of Nevada, said that while some fields of taxation should be left exclusively to the States, he believes “that Federal taxes on gasoline should not be repealed if the Federal aid-to-highways program would be endangered.” And Gov. Thomas J. Mabry, Democrat, of New Mexico, added that “the sparsely settled States of the West must have Federal aid in road building if our road program is to be advanced in the interest of national travel.” Both houses of Congress have before them proposals for studying the question. Sena- tor Husert H. Humpnrey and 41 other Sena- tors introduced a bill last March providing for study of the Federal-State question. In the House Representative Freperic R. Cou- DERT, JR., Republican, of New York, offered a bill last month for a joint congressional and governors commission to study the issue. Either of these bills, if enacted, would carry on the special study of the subject made by the Hoover commission, which reported that “Federal-State relations is the cardinal ques- tion of our Federal system of government.” Low-Priced Footwear Imports Menace Tyer Rubber EXTENSION OF REMARKS HON. THOMAS J. LANE OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Friday, April 21, 1950 Mr. LANE. Mr. Speaker, under leave to extend my remarks, I wish to include the following article from the Evening - Tribune, Lawrence, Mass., Thursday, April 20, 1950, by Raymond N. Maynard: RUBBER TARIFF Cur ENDANGERS TYER Co. (By Raymond N. Maynard) In common with some 30 different small New England industries which stand to be affected by proposed United States tariff re- ductions, the Tyer Rubber Co. of Andover is a long-established local industry that will be seriously threatened through the importa- tion of low-priced footwear. Company officials and employees have recognized a definite threat to the continued operation of the Andover plant, brought about by a 50 percent reduction in tariff on waterproof footwear which was effected by our Government in 1947 and they are further disturbed at the apparent prospect that there may be a further reduction in tariff in foot- wear duties later in the year. At a conference held in the plant office. with other interested parties Tuesday after- noon, to decide on a plan of action, Wallace _ EH. Brimer, general manager and treasurer of the company, weather combined with the increased availa- XCVI—App.——-189 stated that unfavorable. bility of imported low-priced footwear are at least retarding customary early orders for domestic rubber footwear for next winter, as a result of which production there has been severely curtailed and the work force is down about one-third. “The whole footwear industry,” he said, “is disturbed by the 50 percent reduction in tariff on waterproof footwear which was effected by our Government in 1947, and more disturbed at the apparent prospect that there may be a further reduction in such footwear, plus a radical reduction in the tariff on canvas footwear, to be nego- tiated later in 1950. It 1s recognized that international trade is essential and that it is not a one-way street, so that we must buy abroad as much as practicable.” PROTESTS TO CONGRESS “However, hand labor is a relatively higher factor in both waterproof and canvas fcot- wear than in products such as automobiles and other hard goods and chemicals in the production of which automatic-machine processes can be used extensively. This fac- tor enables foreign producers with low labor costs, in the absence of adequate tariffs on imports, to undersell domestic-footwear pro= ducers by as much as one-third to one-half. “Management and employees have in- formed Senators and Representatives of the seriousness of this situation, urging a res~ toration of the higher tariff rates previous- ly in effect on waterproof footwear, and protesting any consideration of further tariff reductions on waterproof or canvas foot- wear.” The seriousness of the situation also drew a statement from Alfred Demers, president of local 187, United Rubber, Cork, Linoleum, and Plastic Workers of America, CIO, in which he stated: ‘Local 137 has protested, approximately a year ago, to Congressmen and Senators about the low tariff on rubber footwear and fabric footwear coming in from Czechoslovakia. Japan is also sending over rubber and fabric footwear, and as a result of this, many of our members are out of work. . “I believe it is the duty of all civic- minded citizens, merchants, and business- men to protest this low tariff rate. Local 187 of Andover has passed a resolution and sent it to all affiliated locals, the interna- tional union, and the national office of the CIO urging that something be done to save the jobs of the local members. Unless co- operation is forthcoming, more people will be out of work and this will affect the com- munities in which they live. I urge every- one to contact their Congressmen and Sen- ators by letters or card protesting the low tariff rates.” PROTEST HOFFMAN PLAN Nor does the proposed solution to the problem as suggested by ECA Administrator Paul G. Hoffman offer any comfort. His plan, as an answer to complaints by various in- dustry and labor groups that the Marshall plan is bringing in a flood of foreign goods that is robbing them of their livelihood, has two parts: (1) Let workers thrown out of jobs by imports draw existing Federal-State jobless pay until new jobs can be found for them; (2) set up a program to train the workers for new jobs and retrain manage-~ ment to set up new industrial enterprises that could employ the displaced workers. Present at the conference, conducted by John H. Kelly, assistant sales manager on footwear, were Vincent Treanor, president. of .the .Andover Taxpayers’ Association;: George Winslow, town clerk representing. the board of selectmen; Alfred Demers, union president; Jack Barry, executive manager of the Greater Lawrence Chamber of Commerce; and plant officials, . A2989 MARKET BADLY AFFECTED On February 18, Mr. Brimer wrote letters to Congresswoman Epitm Nourse Rocers, Congressmen THomaAs J. LANE and JOSEPH W. Martin, and to Senators HENRY CazsoT Lopcr and Levererr SALTONSTALL informing them of the concern of management and employees over the threat of imported ten-~ nis shoes and rubber footwear from Japan and Czechoslovakia, respectively. He stated that the canvas-topped tennis shoes from Japan were being displayed in New York then at prices which, even with the present 35-percent duty on the price of a comparable United States item, are a third or more under our prices, and the rubber footwear products apparently from Czecho- slovakia with the present 1214-percent duty on the price of comparable United States items are about one-half our prices. Fur- thermore, the offerings indicate that the volume is on the increase to an extent which distinctly affects our whole domestic market. He pointed out that the 1947 action which reduced the previous 25-percent rate of duty on rubber footwear to 12% percent on the price of a comparable United States item has resulted in a most serious threat to the industry, and he understood there is a prob- ability of similar action being taken to re- duce by 50 percent the duty on imported tennis shoes, if not to completely change the import tariff to a lower percentage ad va- lorem on both tennis and waterproof foot- wear. If the latter action should be taken and the American selling-price principle should be eliminated, then unemployment in our industry and financial difficulties for the companies in it would be disastrous. “The majority of our business is in the two types of products mentioned above,” he wrote. “We employ normally about 1,000 in Andover, a town having a population of ap- proximately 13,000 and we assure you that our situation is serious. “We have suffered two full winters now without normal snowfall, our employment is down about one-third, and the prospect of waiting another 8 months for the rubber footwear season is bleak enough without the added threat of ruinous competition from imported products. “Foreign competition from countries with much lower wage levels is particularly in- jurious in our industry where the percentage of factory wage and salaries is about 47 per- cent of total cost. The difficulties of com- peting with cheap labor increase as the im- portance of the labor cost increases in rela- tion to total cost, and there are few if any industries in which labor plays a more im- portant part relatively than in the rubber and canvas footwear industry. “We urge that you use your influence to forestall any further reduction in tariff on these products and also to restore the rate of tariff on waterproof footwear to the 25 percent which was established in 1932, re- affirmed in 1937, and maintained until 1947 when it was cut in half.” Acknowledgment was received in all in- stances from the Congressmen and Senators, and the information was forwarded to the Department of State in Washington. As a result, replies received from Jack K. McFall, Assistant Secretary of State, were forwarded to Mr. Brimer. NEGOTIATIONS THIS YEAR The letter from Assistant Secretary Mc- Fall, contained the following information: “In stating that there is a possibility of re- ducing by 50 percent the duty on imported tennis shoes, Mr. Brimer no doubt has in mind the announcement on November 10 by the Department of State that the United States will participate in tariff negotiations under the framework of the general agree- ment on tariffs and trade beginning in September 1950.
A2990 “Up to the present time, however, no de- cision has been reached with respect either to the countries with which the United States proposed to negotiate at the next tariff con- ference or to the items to be listed for pos- sible negotiations. The negotiations at this conference will be conducted in accordance with the Trade Agreements Act. Before entering into negotiations a notice of inten- tion to negotiate will be published, together with a list of articles which it is proposed should be considered in such negotiations, “It should be emphasized that interested parties will be given ample opportunity to express their views regarding those negotia- tions both by submitting formal statements to the Committee for Reciprocity Informa- tion and by testifying in oral hearings con- ducted by that committee. The views so ex- pressed will be taken into consideration by the interdepartmental committee on trade agreements before making its recommenda- tions to the President regarding the conces- sions to be granted and requested in the negotiations. At the present time the mem- bership of the trade agreements committee includes representatives from the Depart- ments of State, Commerce, Agriculture, Treasury, Defense, and Labor, the United States Tariff Commissio.. and the Economic Cooperation Administration. “It is expected that the public notice mentioned above regarding the negotiations will be issued within the next several weeks. The Tyer Rubber Co. is being placed on the appropriate mailing list for the receipt of announcements concerning the negotiations. “In mentioning the possibility of a change in the single American selling price principle, Mr. Brimer no doubt is referring to a provi- sion in the Habana charter for an Interna- tional Trade Organization which would re- quire the abolition of the use of American selling price as a basis for determining the dutiable value of imported merchandise. The charter would require that dutiable value be based on the actual value of the im- ported merchandise and not on the value of domestic merchandise. “However, it must be kept in mind that the charter would not require a change in the protective incidence of the duties pres- ently based on American selling price, but. only in the basis of value used. The pro- posal to eliminate the use of American sell- ing price, which is presently used as a basis. for dutiable value in only a few classes of merchandise, is being considered in connec- tion with possible legislation to simplify customs procedures which it is expected will be submitted to the Congress by the Treas- ury Department. , “Mr. Brimer requested that you use your influence to restore the tariff rate on water- proof footwear. The only way that this can be done without violating our commitments under the general agreement on tariffs and trade would be through a successful action under article XIX (the escape clause) of the general agreement. All of the tariff conces- sions in the general agreement are subject to this article which permits a contracting party to withdraw or modify any concession if, as a result of unforeseen developments and of the concession, increased imports threaten or cause serious injury to domes- tic industry. If Mr. Brimer believes that his company has a good case for such action he may address a request for consideration of his case to the United States Tariff Commis- sion, Washington, D. C. “In order that the views expressed by Mr. Brimer may be made known to the various Government agencies concerned with trade- agreement negotiations, a copy of his letter is being sent to the interdepartmental Com- mittee for Reciprocity Information, which in turn will bring it to the attention of inter- ested officers in those agencies.” The American Way—How May We Improve It? EXTENSION OF REMARKS HON. WAYNE L. HAYS OF OHIO IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. HAYS of Ohio. Mr. Speaker, un- der leave to extend my remarks, I include one of the prize-winning essays from the American Legion annual essay contest in Ohio. This essay was submitted by Miss Patricia County, a freshman in Brilliant (Ohio) High School, and it is one of the 12 winners out of over 75,000 submitted in the State of Ohio. I think this is an indication that our young people are thinking about some of the problems facing this Nation, and with such think- ing as is shown by this essay, I feel that the future of our country is in safe hands. THE AMERICAN Wary--How May Wr IMPROVE Ir? (By Patricia County) In the seventeenth century freedom-loving people of the Old World, in order to escape tyranny of the rulers, began the hard journey to the new continent of America in order to enjoy freedom of religion which was denied them in their own country. The colonies s0 established were mostly self-ruled until the reign of King George the Third, in which the war of independence was fought and won by the Thirteen Colonies. It was then the foundation of the present American way of life was laid under the wise guidance of Washington, Jefferson, Franklin, and other leading patriots of that time. Freedom of religion, freedom of speech, and freedom of the press were guaranteed to all under the Constitution established at that time. Peo- ple withstood all attempts of minority groups to establish so-called isms which would undermine all freedom established under our Constitution, : The American way is opportunity for every- one. It is having your abilities recognized, being given a chance to use them, a poor man becoming a millionaire. It is the illit- erate becoming a man of letters, The Amer- ican way is for men of different creeds giv- ing their life belts to others of the ship and going down with it in harmony. Under the American way free schools, even for the poorest, were established for education, ad~ vancement, and culture. The American way means freedom. The American way means freedom—but the question is, how can we improve it? It is true, our democracy is not perfect. It is not Utopia, so we must always be alert for new ideas to improve our way of life. We should exercise great care in our choice of lawmakers, shake off lethargy, and get out and vote to prevent minority representative elections detrimental to the welfare of the country. An important item is to find out whether the politician has any racial preju- dice. If he does, he does not belong in office. Why not increase the salaries of elective offi- cials so less people will be susceptible to pribes? We should spend more money to improve our educational systems. Educate every American. Reach back into the mountain- ous districts; give them better facilities and more teachers. An educated nation is a progressive one. : Something vitally important at the pres- ent time is to rid our country of communism and racial prejudices. Racial prejudice Will APPENDIX TO THE CONGRESSIONAL RECORD lead to more communism, and thence to great unrest within our Nation. Youth centers should be established for our children. We must guide them in their leisure as well as their education. Teach them the right way to play and work and they will never lean toward the left. There should be cooperation between la- bor and industry. Arguments should be settled by conferences instead of strikes which cripple our economy. There are many more ways the American way of life can be improved. Lest us always be on the alert, so we won't be heading down the road toward socialism. We don’t want the Government taking care of us from the cradle to the grave. A welfare state is not for us. We want to think, act, and live a free life, to work as hard as we please, to get what we want out of life, to retain our human dignity, which is the heritage we have fought for—and for which we Will con~ tinue to fight. Veterans of Foreign Wars Oppose World Federalism EXTENSION CF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, April 24, 1950 Mr. SMITH of Wisconsin. Mr. Speak-~ er, enthusiasm for world federalism is diminishing. Recently Rhode Island and California have rescinded resolu- tions approving that movement. Out in front and leading the fight against the resolutions now pending, is the Veterans of Foreign Wars. National Commander in Chief Clyde A. Lewis.is blazing away with all guns. His organization has just begun to fight. Mr. Speaker, I am including an article. from the current’ issue of Stars an Stripes: ‘ VFW To Oppose ONE Wor.ipers—NaTIONAL Counci, AUTHORIzES SPECIan STAFF AND SPEAKERS’ BuREAU To FIGHT MOVEMENT The Veterans of Foreign Wars will con- tinue its campaign against all forms of world government by setting up a special staff, a speakers’ bureau and an information center to keep the public alerted on the many Schemes and plans which would have the United States join some form of federation which would eventually destroy our form of government. This was the decision reached recently in Kansas City, Mo., by the VFW national council of administration. “The VFW will not be able to establish a center as elaborate as that maintained by some of the proponents of world government, but the best job will be done consistent to the organization’s ability to maintain such a project.” Commander in Chief Clyde A. Lewis, of Plattsburg, N. Y., said following the meeting. “We can not hope to spend sums like the United World Federalists, Inc., whose ex- penditures were close to $800,000 in 1949 to push their world government plan, nor will we have as highly paid national and regional material which they can use to spell out what these schemes would mean to us as a Nation,” he continued. Commander Lewis pointed out that the VFW has made available a pamphlet entitled “The Importance of Sovereignty to Assute
APPENDIX TO THE CONGRESSIONAL RECORD Freedom,” in which there is enough gen- eral information upon which to base solid arguments against world government “schemers.” “We are determined that so long as over- seas veterans are organized and have sacri- ficed so much around the world in life, limb and health, we shall continue to crusade for an America as our forefathers envisioned it. That means strict adherence to the Consti- tution of the United States; loyalty to the Declaration of Independence, and support to the United Nations through which we believe the world’s ills can be solved eventually. “We do not believe that by giving up any more of our sovereignty we can accomplish more than by sitting at a table with sovereign nations, working in cooperation to find ways to improve the peace of the world. We be- lieve that through the Marshall plan and the Atlantic Pact we have gone far enough, and that by working in close harmony with these nations we can build up sufficient strength to discourage any aggressor nation.” Fertilizer Consumption Rapidly Increasing EXTENSION OF REMARKS F HON. USHER L. BURDICK OF NORTH DAKOTA IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. BURDICK. Mr. Speaker, a news- paper article recently written by the dis- tinguished Representative from Iowa, the Honorable H. R. Gross, aroused my interest in a matter of vital concern to Iowa citizens. I am surprised to know that the con- sumption of commercial fertilizer-is in- creasing so rapidly in a soil known to be as rich and productive as the soil of the State of Iowa. I am also surprised to know that a sur- vey made by experts of the United States Department of Agriculture indicates that highly fertilized pasture lands may be the cause of the X-disease that has killed so many cattle, and forced some cattle men to give up the cattle-raising busi- ness. The thing that shocks me most in con- nection with this matter is the fact that fertilizer money is being used to sub- sidize the research work of the Bureau of Plant Industry, and these gifts of fertilizer money are believed to be re- sponsible for keeping the people in the dark as to why it is necessary to Use so much fertilizer per acre, and how the ex- cessive use of soluble nitrogen affects the health of both man and animals. The purchase of the influence of pub- lic officials is a blow at the foundations of popular government. I am strongly in favor of the appoint- ment of a special committee to make a careful study of the extent of this cor- rupting influence, and the effect of pres- ent methods of fertilizer manufacture on the health of the people. The Honorable H. R. Gross rendered a service to the people of his State when he brought this matter to their atten- tion in his newspaper articles in the Tripoli Leader, and other newspapers in that State, and he is to be commended for his interest in the welfare of the farmers. Since the article in the Tripoli Leader throws considerable light upon this im- portant matter, I insert it in the Recorp as a part of my remarks: Congressman Gross’ statement reads as follows: Makers’ Manpracrice DouBLE Costs or Farm FERTILIZERS—LETTER TO CONGRESS Raps In- DUSTRY FoR Hrxine Cost $250,000,000 (By Representative H. R. Gross) WASHINGTON.—Iowa farmers, who have more than tripled their use of commercial fertilizer since 1944 and who forked over nearly $16,000,000 for that product in 1949, probably will be interested in studying charges that it takes as much as two bags of fertilizer to do what one bag did in 1925. The reason is not the soil or the farmer, but the fertilizer, according to sponsors of a bill that would regulate the registration, manufacture, labeling and inspection of fer- tilizer and fertilizer materials shipped in interstate commerce. The charges are contained in the follow- ing portions of a letter written by William G. Holman, of 305 B Street NE., Washington, D. C., on March 14 to the National Fertilizer Association, and inserted in the Conarzs« SIONAL RECoRD on March 20 by Congressman Keere, Wisconsin Republican, who introduced the bill, H. R. 3045, a year ago. “GENTLEMEN: I have just read a statement by you in the March issue of the Fertilizer Review which reads as follows: ‘We know from the price indexes that the cost of a ton of fertilizer is higher today than it was in 1925. The actual figure is—let’s see—8 percent; a ton of fertilizer costs about 8 percent more now than it did 25 years ago.’ “A statement by Mr. O. V. Wells, Chief, Bureau of Agricultural Economics, United States Department of Agriculture, and pub- lished in the December 1948 issue of the Plant Food Journal, shows that your state- ment is far from being correct. “Mr. Wells said: ‘The Bureau of Agricul- tural Economics indexes indicate that ferti- lizer prices last fall were only 55 percent | above the average for the prewar years, 1935- 89,’ and the Bureau probably did not take into consideration the facts that I shall bring to your attention. ‘Namely, that the farmer is forced to use 50 percent more fertilizer per acre today than would be necessary if the fertilizer had con- tained the same proportions of water-soluble and organic nitrogen that it did prior to 1925. “You failed to tell the public that prior to 1925, only one-third of the nitrogen in fertilizers was derived from water-soluble sources—such as nitrate of soda, and sulfate of ammonia—if we are to believe the source tags that appeared on the bags. “The remaining two-thirds of the nitrogen was derived from organic sources, such as dried blood, fish scrap, animal tankage, and cottonseed meal. “You probably know that Federal and State agronomists recommended these proportions, and believed that one-third of the nitrogen from quickly soluble sources was as much as the plant could take up before some of it was wasbed in the soil water beyond the reach of plant roots. “You know that when fertilizer was made this way, the average consumption per acre was three to four bags—and it grew tobacco that made Buck Duke and Dick Reynolds rich and famous. “You also know that soon after the enact- ment of the Webb-Pomerene Act, a few fer= tilizer manufacturers acquired control of the phosphate market—see Federal Trade Com- mission Report—and that soon after that they compelled other manufacturers to in- crease the water-soluble nitrogen content of ’ the Texas shore line. A2951 the fertilizer to 65 percent, and to reduce the organic nitrogen content to 25 percent. “The farmers complained about this radi- cal formula change, and soon thereafter, the State laws were amended. These amend- ments permitted the mantfacturers to in- crease the total nitrogen content of all fer- tilizers 21 percent, to take source tags off fertilizer bags, and to use almost unlimited proportions of cheap, water-soluble sources of nitrogen without letting farmers know that this was being done. “The radical reduction in the organic ni- trogen content of the fertilizer forced the farmer to use at least 50 percent more fer-. tilizer per acre in order to get enough or- ganic nitrogen to feed his crop to maturity, and this increased the amount of the farm- ers’ national fertilizer bill $250,000,000. “The record shows that the National Fer- tilizer Association was indicted and fined $9,000 in a Federal court in North Carolina for violations of the Sherman Antitrust Act, and for having exerted an undue influence on State lawmakers, and law-enforcement offi- cials, and the attention of the Congress has recently been called to the fact that the fer- tilizer interests have been subsidizing the research work of the Bureau of Plant In- dustry. “Tf I were in your place, and wanted the~ respect and esteem of the public, I would openly advocate the enactment of H. R. 3045 that will compel all manufacturers to be honest with the farmers; such a law would make it easier for State enforcement agen- cies to see that the farmer got an honestly made fertilizer, and would help to protect the health of the people.” Mr. Holman, writer of the above letter, has devoted himself to the fertilizer subject for years, and has served as consultant to a number of Representatives and Senators of farm States. : I would like to point out, in connection with his statement on the $9,000 fine under the Sherman Antitrust Act, that antitrust laws will never be properly enforced -until prison sentences, instead of fines, are meted out to violators. The Tidelands Bill EXTENSION OF REMARKS HON. THOMAS J. LANE OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. LANE. Mr. Speaker, under leave to extend my remarks, I wish to include the following editorial from the Boston Sunday Post, Boston, Mass., April 23, 1950: Dovsie TatK The tidelands bill, which would give give States control of tidelands for 3 miles offshore, has been reported out of the Judi- ciary Committee in the House with a some- what surprising exception. In the case of Texas the jurisdiction would extend 1044 miles offshore, and the reason given is that this exception was made be- cause of the conditions under which Texas entered the Union. As a sample of silly double talk, that takes the all-time honors. Of course, the reason for the 1012-mile limit which would be accorded Texas is that oil fields have been found that far out from Why not say so? Why pretend that Texas came into the Union with special privileges? It is this kind of foolish deception that does the greatest harm to democracy.
A2992 It is perfectly reasonable and logical for Texas to want to control, for tax purposes, oil lands which lie as much as 10 miles out in the Gulf of Mexico. It isa pity that George’s Bank doesn’t lie closer to the Massachusetts coast line, but it is a safe bet that the Com- monwealth would exercise control of the fish- ing there—a control that is vitally needed. Natienal Modesty Week—Truman Takes Credit EXTENSION OF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, April 24, 1950 Mr. SMITH of Wisconsin. Mr. Sroaker, the President has taken full credit for the wonderful state of the Union. Some newspapermen outside of Washington think he is a bit optimistic. My friend Tex Reynolds, a foremost journalist in Wisconsin and columnist for the Racine Journal-Times, recently expressed his views on this subject. I include his column of April 15, 1950: BESTOWING THE CREDIT ror SHAPE or NaTION mn WEEK oFr MODESTY This marks the close of National Modesty ‘Week, observance of which was led by the President of the United States himself. In setting the keynote for the week, Mr. Truman did a great imitation of a shrinking violet. He said this country is in fine shape, and frankly admitted that he deserves the credit. In fact, he came right out and claimed it. Of course, there’ll be nasty Republicans who'll say they are glad to give Harry the credit for what has happened in the last Byears. For instance, the Government going into the hole so many billions of dollars that nobody can count the amount of the debt, hardly, to say nothing of figuring any way to pay it. These same low-down critics of the Happy Haberdasher will allow as how he can have all the credit he wants for the agricultural situation. That is, for the surplus-potato deal, and the mountains of dried eggs, milk, wheat, etc., in the Government’s hands, which were bought at high prices with the taxpayers’ money, but which can’t be sold without hurting the market, which is going to pot anyway, which is reducing the farm- ers’ income, which they don’t like. (I'd be in bad shape if I couldn’t spell ‘‘which.”) Others will gladly bestow upon Missouri’s favorite son all the credit he wants for cur- rent high income taxes that cause arthritis in practically everybody’s pocketbook. Also for special war excise taxes on various items, such as war paint for women, telephone calls, railroad tickets, etc., though the war has been over for 5 years. You'll find plenty of the aforesaid Repub- lican-minded snakes in the grass who'll also say the Chief Executive can have all the credit for conditions within government it- self. That is, for red herrings like the trai-~ tor Alger Hiss, and for Maj. Gen. Harry Vaughan, the big influence and percentage man, Then there’ll be those who won’t deny Margaret’s papa all the credit he desires for a shrinking dollar and growing prices so that when you take a $10 bill to the store, you don’t need any market basket to carry what you can buy. In fact, you don’t even need big pockets in your coat, Or if you want to buy big things, like automobiles, washing machines, refrigerators, etc , and you do it on time, you don’t have to worry be- cause you won't live long enough to pay the last installment anyway. If Mrs. Truman’s husband wants the credit for the shape of this country’s for- eign affairs, he can have that, too, many will agree. For example, the big drive to stop communism, financed by billions of American dollars, which partially succeeded in some parts of Europe, though not in oth- ers, while the Communists stepped out and grabbed the biggest hunk of Asia. Also, some will maintain, the White House landlord can take the credit for our splendid military situation. That is, the rapid and wholesale decline in the strength of the Army, Navy, and Air Force, at a time when war is a possibility and our Govern- ment is talking tough to the Russians and telling the world that we can lick anybody. Oh, there'll be some who'll say that no one man can rightfully claim credit for all this, even if he is President. They’ll maintain that all this is the work of many people, which no single individual could possibly control. But this line of thought is contrary to the whole purpose of national modesty week. During this great week, at least, common courtesy to the Nation’s No. 1 citizen dic- tates that when, in all modesty, he takes credit for what has happened in this coun- try, he should be allowed to keep it. We Must Face the Facts EXTENSION OF REMARKS HON. EDWARD T. MILLER OF MARYLAND. IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. MILLER of Maryland. Mr. Speaker, it is reported that the President, in his speech last night, gave assurance that no known case of Communist or other subversion in Government has gone uninvestigated. All loyal citizens should be comforted by this declaration, but many of them would rest easier if they were confident that the investigations were of sufficient scope and thoroughness. Correspond- ence indicates doubts on the part of many jevel-headed Americans as to the wisdom of using nets designed to catch “red her- ring” in an effort to take sharks-——even though the sharks are red too. The President also stated in his speech: “There is no area of American life in which the Communist Party is making headway.” That assertion would be more reassuring if the American people had recovered from the shock of the Hiss case, and of learning that the Russians had acquired our atomic secrets and other vital information through leaks from within American life. Mr. Speaker, under leave, I include here an editorial by Mr. C. P. Ives, which appeared in yesterday’s Baltimore Sun and which focuses attention on an im- portant feature of our present difficulty: A SYMBOLICAL QUESTION From SENATOR GREEN (By C. P. Ives) , At the peak of Mr. Budenz’ testimony before the Genate committee Thursday, the administration wheelhorse, Senator GrrEn, APPENDIX TO THE CONGRESSIONAL RECORD of Rhode Island, was questioning the witness with considerable zeal, Why, Senator Green wanted to know, hadn’t the witness testified in behalf of the Government at the trial of the American Communist Politburo members in New York City last year? “But Senator,” said Mr. Budenz, “I was the . chief witness for the Government; I spent 10 days on the stand.” Senator GREEN’s question may well stand as a kind of small historic symbol. For the lack of awareness of the facts of life betrayed by the time-worn liberal from Rhode Island only sligttir caricatures the official attitude of all the 1933 men on the whole question of communism since that date. As it happens, indeed, there is a smack of ths same flavor in a speech by another Rhode Island liberal, made the very night before the Budenz testimony. I refer to a New York City speech by Attorney General McGrath. In this address Mr. McGrath once more denounced hysteria and witch hunting of the kind the executive branch has steadily (and sometimes rightly) attributed to Con- gress since the days of Martin Dies. He asserted again that the executive branch could ke depended on to handle the com- munism issue. Yet within a few hours Mr. Budenz was to testify in open hearing that only weeks after Senator McCarruy first raised his voice, had the FBI got information from him on Mr. Lattimore, Think of it. Here is testimony, so far un~ contradicted, that in this supremely im-~- portant episode, the executive branch once more lay back and waited for a Member of Congress to stimulate testimony from the man long since established as the executive branch’s own No, 1 informant on commu- nism, Personally, I find this statement of Mr. Budenz hard to believe as anything he said throughout his day on the stand. And yet in his behalf it may be said that Senator Tyrpines, in his rather frequent pre-Budenz statements on Mr. Lattimore, hardly hinted at anything in the FBI files of the sort finally adduced from the most obvious sources in these matters. For was not Mr. Budenz an obvious source? Was he not a source indeed, rather demand- ing attention by executive officials alert not merely to defend the Republic but to pro- tect innocent men against possible smears? Let’s see about that. Mr. Budenz talked first before the Un-American Activities Com- mittee of the Congress in November of 1946. In that testimony he laid the finger on one Gerhart Eisler as the top Communist in the United States. Eisler was cited for contempt by the committee, fled the country and ended up as a functionary of the east German Communist state. In March of 1947 and in August of 1948, Mr. Budenz put the finger on one Harold Christoffel before two congressional com- mittees. Christoffel was tried for perjury and convicted. In September of 1947, Mr. Budenz appeared against one Santo in a deportation hearing. Santo left the country under warrant of de~ portation. An August of 1948, Mr. Budenz testified against one Reinicke, a Hawaiian school teacher. Reinicke was fired from his post. On August 24, 1948, Mr. Budenz testified before Congress’ Committee on Un-American Activities that though he didn’t know the man personally, “Mr. Hiss was a member of the Communist Party.” Hiss was convicted of perjury. In September of 1948 Mr. Budenz testified against one Alexander Stevens in a deporta- tion hearings; Stevens left the country under @ warrant of deportation. .
APPENDIX TO THE CONGRESSIONAL RECORD Finally, as even Senator Green now knows, Mr. Budenz was the warhead of the Govern- ment’s case against the American Communist Politburo, spending 10 days on the witness stand. The jury convicted. Despite this record, however, the Justice Department took no steps—so Mr. Budenz says—to squeeze everything available out of him. Not until Senator McCarrHy spoke did the FBI get Lattimore statements from Mr. ‘Budenz. Only now has Mr. Budengz agreed to name his final 400 concealed Com- munists to the FBI—and here by all means let him follow Senator GR=ezn’s counsel and name his Government suspects first. Nothing said here, of course, is meant to suggest in any way that the Budenz testi- mony (so much of it hearsay) on Mr. Latti- more is true. What I mean to say here is that on the basis of a minor and so far uncontradicted point of Mr. Budenz’ testimony it seems once more to have taken congressional pro- test (rude as it often is) to move the execu- tive branch into an inclusive examination of alleged Communist infiltration. In the New York address Attorney Gereral McGrath warned against vigilantism. But everywhere in America heavy-hearted Amer- icans know that the antidote to vigilantism (or worse) is faithful and emphatic discharge of their sacred oaths by the constituted authorities. Our American Watch Industry EXTENSION OF REMARKS oF HON. NOAH M. MASON OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. MASON. Mr. Speaker, before World War ID—1931~35—47 percent of the American market for jeweled watches Was supplied by imported watches from Switzerland, and 53 percent of the Amer-= ican market was supplied by our Ameri- can jeweled-watch industries. In 1934 we signed a reciprocal-trade agreement with Switzerland. Later our American watch factories were retooled and con- verted for war needs, making precision instruments for the Army and Navy. Switzerland then took over the Ameri- can market for jeweled watches to such an extent that by 1946 Switzerland sup- plied 86 percent of the jeweled watches sold in America. Mr. Speaker, since 1941, when we en- tered the war, a total of 59,000,000 Swiss watches have been imported. During the 4 years—1945 to 1948, inclusive—an aver-- age of more than 9,000,000 Swiss watches were imported each year. This importa- tion of Swiss watches under our recipro- cal-trade agreement with Switzerland has seriously damaged our American ‘watch industry. Today there are only three American jeweled-watch com- panies left in the United States, Elgin, Hamilton, and Waltham, and the Wal- tham Watch Co. is already bankrupt and in the hands of the receiver. The serious question concerning the American jeweled-watch industry is the important part it plays in national de- fense. It is absqlutely essential that a pool or reservoir of skilled watchmakers be maintained, to be drawn upon in time ef war to make precision time in- struments—chronometers,  fire-control watches, time fuses, aircraft instru- ments, jewel bearings, et cetera—without which not a battleship nor a warplane can be operated, not a bomb can be dropped, not a rocket bomb fired until a delicate timing instrument to operate it has been installed. There is no source for the kind of skill needed to make these Precision instruments other than the jeweled-watch industry. Yet our recip- rocal trade agreement with Switzerland has almost destroyed our American jeweled-watch industry that is so essen- tial to our national defense. Switzerland has captured the world trade in jeweled watches. Even the American market has been taken over to the extent of 80 percent. Switzerland furnished practically all the precision instruments used by Germany in the last war. She also furnished most of the pre- cision instruments used by our European allies. She could do this because she was a neutralin the war. Do we want to depend upon Switzerland in time of war for precision instruments? Dare we risk being dependent upon Switzerland? Mr. Speaker, under leave to extend my remarks I include a letter received from Mr. LeRoy A. Mote, secretary of the Elgin National Watch Co., and a clipping from the Elgin Daily Courier-News of April 17, entitled “Manufacturing Divisions, Watch Factory on 4-Day Week.” The letter presents a picture of con- ditions as they are today. ELGIN NaTionaL WarcH Co., Elgin, Ill., April 19, 1950. Hon. Noau M. Mason, House Office Building, Washington, D.C. Dear CONGRESSMAN Mason: On April 1, we announced the Iaying off of approximately 800 employees in our plants at Elgin, T1.,, and Lincoln, Nebr. This lay-off was about evenly divided between the two plants. + In announcing that lay-off, we stated: “Because of the disruption of the watch market result~ ing from the extensive liquidation and sacri- fice sales of Swiss watches which are being dumped on the market in great quantities, it has become necessary to reduce our pro- duction schedules.” These liquidation sales that have been going on for the last 6 to 9 months, and which are now beginning to in. clude nationally advertised brands have, in- deed, had a serious effect upon the business of American watch manufacturers. We now find that it will be necessary to even more extensively curtail our produc- tion schedules than we had anticipated some 8 weeks ago, and I enclose a clipping from the Elgin Daily Courier-News of April 17, commenting on the action that has been taken. The 4-day week schedule will be in effect for about 5 weeks, which is the time it will take to revise our production schedules and determine the full extent of . the additional lay-off necessary to permit us to return to a 5-day week. Had the State Department taken a realistic approach to the situation back in 1945-46, when we were before the trade agreements organization protesting the reduced rates of the trade agreement with Switzerland, much of this could have been prevented. Our approach to the trade agreements or- ganization at that time was predicated largely upon our anticipation that this situ- + ation was bound to result from the flood of Swiss watch movements which were coming ’ In during the war. As a member of the Ways - foreign currencies. _ are certain perm: A2993 and Means Committee, you are generally familiar with the efforts we have been mak- ing in connection with the tariff. We, of course, have been closely checking on market conditions with our jewelry-store outlets, and it is quite evident that another factor which is contributing to the slow- down in sales at normal retail price levels is the continuance of the excise tax. Of course, the basic difficulty is the dumping of these Swiss stocks. However, since we know that the excise tax is also influencing the situation, we thought it advisable to call this aspect of the matter to your attention. Yours very truly, LeRoy A. More, Secretary. [From the Elgin (IU.) Daily Courier-News of April 17, 1950] MANUFACTURING DIVISIONS, WatcH Factory on 4-Day WEEK All employees of the manufacturing depart- ments of the Elgin National Watch Co. went on a 4-day week work schedule today. The sales department, however, will con- tinue on a 6-day schedule and office em-~ ployees, especially those who service the sales department, will remain on a 5-day week. It was stated at the watch factory that the reduction of the workweek was neces- sitated by a slacking up of sales, which made it inadvisable to increase the inventory. The curtailment of hours applies to the Lincoln as well as the Elgin plant. What action the factory executives take at the end of the 5-week period will be decided by conditions as they exist at that time. ITO Is Premature - EXTENSION OF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, April 24, 1950 Mr. SMITH of Wisconsin. Mr. Speak- er, a Washington Post editorial on April 21 calls attention to Mr. Acheson’s plea for adoption of the International Trade Organization charter. Hearings are now under way before the Foreign Affairs Committee. This is legislation that should not be considered, Mr. Speaker. The editorial clearly points out its weak~ nesses. I include it at this point: AcHEson’s PLEA For ITO It is a moot question whether the present ITO charter, for ratification of which Sec- retary Acheson is pleading, would be an effective means of removing obstructive trade parriers. There are too many escape clauses and qualifications, some of them applicable only for a so-called transitional period, and others of a permanent nature. Mr. Acheson admits, for instance, that, charter principles to the contrary notwithstanding, countries in balance-of-payments difficulties may be compelled to apply quota restrictions to im- ports owing to shortage of dollars or other He also concedes that the charter does not—and cannot—remove all trade discriminations. Moreover, there ent exceptions to the com- mitments regarding trade policies—relating to national security, agricultural policy, eco- nomic developments, and regional prefer~ ences. For example, under the charter, quantitative import restrictions are per- mitted when their purpose is to insure en- forcement of national measures designed to
A2994 limit domestic production or liquidate tem- porary agricultural surpluses. Admitting the necessity of these escape clauses, they raise the question whether mvch is to be gained by adherence to an elaborate ccde for the guidance of trading nations that is loaded down with qualifying reservations and exceptions to the general rules. As a matter of fact, there is no expectation of attaining the long-range objectives of the ITO for some time to come. There is also considerable danger that the temporary escape clauses of the charter, if used over an extended period of time, might become permanent. In any case, so long.as the ECA continues to provide large-scale aid for western Europe, the provisions of the charter will have very little effect on the character of international trade Under existing con- ditions, therefore, it is, in our opinion, pre- mature to press for action on a plan that is based on future hopes rather than immediate accomplishment. The case for deferring a decision 1s also strengthened because of the fact that the proposal to accept membership in the ITO has given rise to sharp differences of opinion among business groups, trade and civic organizations. Coast Guard Reserve Training EXTENSION OF REMARKS or - HON. THOMAS J. LANE OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. LANE. Mr. Speaker, under leave to extend my remarks, I wish to include the following article from the Boston Herald, Boston, Mass., Saturday, April 22, 1950: DEFENSELESS Ports Although it is our earnest hope that the omnibus appropriation bill will emerge from the House greatly reduced in size, we are obliged to give our support to one proposed increase. That isan item of $4,100,000 which the President requested for Coast Guard Reserve training and which the Treasury- Post Office subcommittee has unaccountably cut out of the bill. This sum is considered absolutely essential for the proper maintenance of port security which is one of the wartime responsibilities of the Coast Guard. During World War IT the Ooast Guard had more men-assigned to this duty in the ports of Boston and New York alone than it now has for all its peace~ time duties everywhere. Obviously it must rely on its reserve to handle this vital func- tion in the next emergency. Yet it has been denied all funds to train such a re- serve. Secretary of Defense Johnson, who has been notoriously penny-pinching in his allo- cation of available defense funds, has gone on record as “fully concurring” with the President’s request for Coast Guard funds. “It is vital to national defense,” he has said, ‘that a modest but fully tramed force be in being to detect sabotage, supervise ex- plosives loading, prevent waterfront fires and explosions, control the identity of waterfront personnel, etc.” That is good enough for us. If these vital functions are officially assigned to Coast Guard, then Coast Guard should be given the wherewithal to fulfill them. It is par- ticularly unthinkable in these days of atom and super-atom bombs that our ports should be left to the protection of untrained and unorganized volunteers. The reason for the failure to supply reserve funds up to now appears to be the purely technical one that Coast Guard is outside the Defense D>rer+ment and requests until now have not : 's° * all the formally required channels. But in the event of a sudden attack upon our port cities, techni- ealities will not prevent disastrous loss of life and property. We hope that the Coast Guard training ap- propriation will be restored in an amendment from the floor and that it will be part of the omnibus bill when the President signs it. Farm Price Support Program EXTENSION OF REMARKS HON. GLENN R. DAVIS oF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Myr. DAVIS of Wisconsin. Mr. Speak- er, there are differences of opinion re- garding the highly publicized Brannan plan, whatever that may contain at this moment. There can be no reasonable difference of opinion, however, as to the responsibility of the Secretary of Agri- culture to administer and effectuate the existing laws. There are a substantial number of responsible farm leaders who fear that the present Secretary is deliberately mis- handling the present farm program in order to make his own plan look good in contrast. The fears of one such farm leader, James C. Green, executive secre- tary of the Wisconsin Farm Bureau, are expressed in the following article from the Wisconsin State Journal of Madison, Wis.: BRANNAN HANDLING OF SUPPORTS RAPPED— J. C. Green, Stare Farm Bureau Heap, SEES PERIL TO Co-Ops *A charge that Secretary of Agriculture Charles F, Brannan is mishandling the na~ tional farm price support program was made Wednesday by James C. Green, Madison, ex- ecutive secretary of the Wisconsin Farm Bureau, in answer to a statement last week by Brannan claiming that the Farm Bureau is “undermining cooperatives.” “The Secretary’s method of supporting dairy prices 1s damaging Wisconsin market~ ing cooperatives,” Green said, “and it will destroy them if it is continued. “LOSE CUSTOMERS “It gives co-ops no choice but to sell to the Government, and thus losing their reg- ular customers, “This practice is making farmers depend-~ ent on government and seems intended to soften them up for the kind of direct sub- sidy that Brannan is talking about,” Green declared. “The Secretary is trying to discourage farmers from marking their own agricul- tural products.” He said Brannan should announce price supports for dairy products at terminal mar- kets, instead of at shipping points in this country, AID TO CO-OPS Green said that would restore the func- tion of co-ops as sales agencies for their farmer members and strengthen their posi- tion when the day of normal marketing re- turns. He termed “shortsighted” the policy of ac- cepting Government payments now in OXs APPENDIX TO THE CONGRESSIONAL RECORD change for the commercial market outlets which the co-ops have built up over past years. Support price of butter now 60 cents a pound is uniform throughout the country and makes no provision for freight, storage, or commissions, Green said. SOLD TO GOVERNMENT In consequence, many sales of dairy prod-~ ucts are being made to the Government. Green said he has written to Don Ander- son, assistant director of the Dairy Branch of the Production and Marketing Admunistra- tion (PMA) in the Department of Agricul- ture vroine that support prices be based on The Farm Bureau is greatly concerned over the future of cooperatives, and contrary to what Secretary Brannan says, wants to see them expand instead of withering away un- der paternalistic Government interference,” Green declared. Menace of Imports of Shoes From Czechoslovakia EXTENSION OF REMARKS HON. THOMAS J. LANE OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. LANE. Mr. Speaker, under leave to extend my remarks, I wish to include the following communication and enclo- sure, that I have received from Mr. Max- well Field, executive vice president, New England Shoe and Leather Association, Boston, Mass.: New ENGLAND SHOE AND LEATHER ASSOCIATION, Boston, Mass., April 24, 1950. Hon. THomas J. Lane, House of Representatives, Washington, D.C. DeEaR Mr. LANE: Our association has sent its final communication to the Commissioner of Customs, Frank Dow, requesting that he act favorably on its petition that current im- ports of women’s low-priced shoes from Czechoslovakia be investigated as a violation of the Antidumping Act of 1921. A copy of this letter is enclosed. We earnestly request your approval of this suggestion, namely that you personally call on Commissioner Dow to urge that he ap- prove this investigation on the basis that the necessary information cannot be secured in any other way than by an official investiga- tion of a Government agency, such as the Treasury Department. I personally will be in Washington tomor- row and Wednesday and will call you to learn your reaction to the latter suggestion. With kindest personal regards. Sincerely yours, MaxwE tu Freup, Executive Vice President. APRIL 18, 1950. Mr. Frank Dow, ‘ Commissioner of Customs, Treasury De- partment, Washington, D. C. DrEar Mr. Dow: We greatly appreciate your informative letter of April 14, in which you have clarified several important questions with respect to the current status of women’s low-priced shoes being imported from Czechoslovakia. We wish to commend your Bureau for its speedy action in holding up the release from customs custody of all such shoes until they are legibly and conspicuously marked with
APPENDIX TO THE CONGRESSIONAL RECORD the name of the country of origin. A large number of the shoes now being sold at re- tail, that have come to our attention, have marks which are illegible and inconspicuous, so that your forthright action will help pro- tect the interests of the American shoe in- dustry. Our association, as you know, filed on March 9 a formal petition with the Honor- able John W. Snyder, for an immediate in- vestigation of these imports as being in vio- lation of section 160 (a) of the Antidump- ing Act of 1921. In this communication, we advised the Secretary that it was very difficult for our association to present factual data of the pro- duction costs, or the wholesale or retail prices in Czechoslovakia of the same or simi- Jar shoes, as is required under the act. The reason for this is that these shoes are being produced in a nationalized industry behind the iron curtain, where this type of infor- mation is considered secret and severe pen-~ alties are meted out to any informants. Actually, our association has been formally advised by Officials of both the United States Department of Commerce, as well as other Government agencies, including the State Department and the Department of Labor, that this information could not be furnished our association. It is self-evident, there- fore, that these conditions prohibit more complete and current information being fur- nished to you, and this fact, we feel, justi- fies, more than any other fact, action by your Bureau in undertaking a formal inves- tigation to prove whether there is a viola- tion of the Antidumping Act, for it is only as a result of a Government investigation ‘that the facts can be established, once and for all. Our communication to Mr. Snyder was acknowledged on March 17 by W. E. Higman, chief of the Division of Classification, Entry, and Value, who advised that our petition had been referred to his office for a reply, and that “this matter is receiving consid- eration and, when a decision is reached, you will be advised.” Mr. Higman has a com- plete file of our correspondence, and we re- spectfully suggest that this file be brought to your attention with this letter so that you may be fully advised of all the informa-~ tion which our association has furnished your bureau in support of its claim of suspicion of dumping of these Czechoslovakian-made shoes. We advised Mr. Higman on March 24 that a former commercial attaché of the Czecho- slovakian consulate in New York City, E. J. Hajny, had advised us that the rationed prices of women’s leather shoes in the spring of 1949 were 400 to 500 koruna per pair, or the equivalent in dollars of $8 to $10 per pair. Presumably these shoes are comparable in selling qualities to the imported shoes, as they were also made of leather uppers and nonleather synthetic soles. Mr. Hajny in- formed us that the free market prices of these shoes during this same period was $35 to $40 per pair. He further informed our association, and we so advised Mr. Higman, that by December 1949 prices on the free market were lowered by 30 to 35 percent, and that rationed shoe prices were also decreased slightly, but not anywhere as substantial a reduction as for free market prices. This information can be verified by contacting Mr. Hajny at his home at 7085 Broadway, Jackson Heights, Long Island, N. Y. (Tele- phone Newtown 9-7400). _ On March 27 we wrote again to Mr. Higman sending him several pairs of Czechoslovakian. shoes, one stamped Kerrybrooke Casuals which is being retailed at $1.95 in Sears Roebuck’s retail stores, as well as through their 1950 spring and summer catalog {see pair L on the bottom of page 90). The sec= ond pair was purchased from R. H. Macy in New York at $2.39. per pair. We stated at that time that in the opinion of shoe man« ufacturing members, these shoes represented unusual values and were superior even to comparable American-made shoes retailing at $4 to $5 per pair, as claimed in our letter of March 9 to Mr. Snyder. In this same com- munication, we enclosed an affidavit by a native of Czechoslovakia who now is em~ ployed in one of our member factories in Bos- ton, by name Bernard Katz, in which he stated that he had in his possession a laced sandal type cemented shoe, with plastic sole and leather platform, for which his wife had paid 400 koruna, or $8 per pair last year. Several other pairs of women’s leather shoes were mentioned in this affidavit, the original copy of which I am enclosing witb this letter. The value of both this statement, and that of Mr. Hajny, referred to above, is that from two reliable sources we have established the fact that cemented shoes with leather up- pers and a leather wrap platform, and plas- tic soles, were sold in Czechoslovakia last year—and presumably are still being re-~ tailed this year—at prices equivalent to $7 to $8 per pair. It is our association’s claim that for customs purposes, the shoes in question should be valued on the basis of these foreign value prices of similar mer- chandise offered for sale in the latter part of 1949—at the time when the imported shoes were shipped out of Czechoslovakia— which prices, so far as we know, are still in effect currently in that country. As we have indicated in our letter to Mr. Snyder, the Czechoslovakian shoes that have been imported into this country were copies of American styles, based on American lasts and patterns and deliberately priced below their costs of manufacture in order to cap~ ture an important segment of the American shoe market. This action, in turn, has cre~ ated great injury to many manufacturers in the American shoe industry, as well as hav- ing harmful effects on the full time or con~ tinuous employment of American shoe- workers employed in these factories. A number of New England shoe manufacturers have already written to you directly advis- ing of the extent of injury which these com- panies have suffered as a result of the con- tinued importation and sales of these Czechoslovakian shoes by large mail order, chain, and department stores throughout the country. American shoe retailers are also being in- jured by these shoes which are being sold by a few competitors, because these com- petitors, with no requirement that they must list the country of origin in their advertise- ments or in catalogs, are promoting all- leather shoes at prices one-half or more un- der domestic prices of comparable American- made shoes, so that these afore-mentioned retailers are losing considerable business to their few competitors carrying these Czecho- slovakian shoes. The magnitude of the injury caused by these imports to American shoe manufac- turers, their workers, and retail customers is best revealed by the following facts: Imports of women’s and misses’ shoes from Czechoslovakia Dollar value 1 Total, year 1949 $101, 413 1950—J: 7; 146, 644 t These figures from U, S. Department of Commerce releases. . It is significant to note that the combined imports of January and February of this year of 211,454 pairs, valued at $193,768, is over double the total imports of 1949 and the ‘average prices of these shoes, according to Government figures, is only 95 cents per pair. Our association respectfully points out that such a heavy increase in these imports con- firms our statement to Mr. Snyder that over a@ million pairs of these shoes are expected to A2995 be imported in this country during 1950, and also that the declared prices on the import manifests constitute a suspicion of dumping in violation of the Antidumping Act of 1921. We trust that the facts herewith submitted by our association, including the cost esti- mates in our letter to Mr. Snyder—see copy attached—and the evidence submitted to Mr. Higman, will warrant your issuance of notices of suspected dumping to the various ap- praisers, or the issuance of withheld ap- praisement because of suspected dumping, in compliance with the Antidumping Act of 1921. May we again repeat our appreciation for the action of Officials of the Bureau of Cus- toms in their consideration of our associa- tion’s formal petition. If you feel that addi- tional information is necessary before you can make a final determination with respect to our association’s claims that the Anti- dumping Act is being violated, please so ad- vise us and every effort will be made to furnish this data promptly. We cannot help, however, reiterating our oft-expressed claims that factual information on prices of costs in Czechoslovakia today can only be obtained through a formal investigation by your Bu-~ reau under the Antidumping Act of 1921. Yours very truly, NEw ENGLAND SHOE AND LEATHER ASSOCIATION, MAXWELL FIELD, Executive Vice President and Secretary. Removal of Postmaster at Bagley, Wis. EXTENSION OF REMARES HON. GLENN R. DAVIS OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25; 1950 Mr. DAVIS of Wisconsin. Mr. Speak- er, last week a Wisconsin postmaster Stanley Hall, of Bagley, with whom I attended college, was notified that he was to be ousted for inefficiency. It is quite obvious to the people of Wisconsin that Mr. Hall’s inefficiency consisted of failure to contribute to the Democratic campaign fund. Rex Karney, fact-find- ing associate editor of the Wisconsin State Journal of Madison, Wis., wrote an excellent exposure story, accompanied by photostatic copies of the fund solici- tation letter and the subsequent dis- missal letter. It is interesting to note that thereafter there appeared in the hands of Democratic organizing com- mittee officials—not in the hands of pos- tal officials—letters of complaint regard- ing Mr. Hall. A majority of the residents of Bagley have signed a statement testifying to Mr. Hall’s efficiency and good service as postmaster. "Wisconsin’s senior Senator has demanded an investigation by the Postmaster General. And properly he should. This entire sordid situation is well described in an editorial which appeared in the Wisconsin State Journal entitled ‘Rule of the Carpetbaggers.”’ Its text is as follows: . RULE OF THE CARPETBAGGERS The story of the Bagley postmaster who was fired from his job after refusing to cone tribute to the Democratic campaign kitty should surprise no one. That fact that this postmaster, 39-year-old Stanley Hall, always had done his job well,
A2996 and that the majority of the residents of Bagley were willing to attest to that fact, has no bearing on the matter. His sin was that he had the guts to stand on his hind tegs and tell the political shake~ down artists to go to—— That sort of thing isn’t tolerated in Wis- consin Democratic politics. You toe the line. You accept, unquestioningly, the deci- sions made by the knee~pants brain trusters that have seized control of the Wisconsin Democratic Party through the medium of the Democratic organizing committee. So you have a wife and 6 children to sup- port? Come across, boy. We would appreciate your contribution. The 1950 campaign fund must be assured. Neither is the fact that Stanley Hall had been a lifelong Democrat, like his father before him, of any consequence. Because the Democrats—the real honest- to-goodness Jeffersonian Democrats—no longer control the Wisconsin Democratic Party. They have been frozen out by the tea party intellectuals, the remnants of the LaFollette Progressive machine, and some Socialists who haven’t the honor or prin- ciple to admit that they are Socialists. The Democrats have been shunted aside and are supposed to show up only when the collection plate is passed or the votes are needed at the polls. Incidents similar to the ouster of Stanley Hall will continue to happen just so long as Wisconsin Democrats continue to allow the present crop of carpetbaggers to run their party. As long as the Miles McMillins, the Pat Luceys, the Horace Wilkies, the Andy Bie- millers and their uk run the Wisconsin Demo- cratic Party, such happenings will be com- monplace. Keep the Issue in Sight EXTENSION OF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Monday, April 24, 1950 Mr. SMITH of Wisconsin. Mr. Speak- er, as part of my remarks, I am including an article that appeared in the Mil- waukee Sentinel. It deals with the Mc- Carthy charges against the State De- partment and I commend it to all Mem- bers: Kerrep THE ISSUE IN SIGHT (Reprinted from the Tablet, official organ of the Roman Catholic diocese of Brooklyn) Arthur Krock, well known journalist, and other Washington newspapermen, as well as Government officials, are surprised at the quantity and type of mail being received at the Capitol since Senator JoszPH McCarTtHr has made his charges against the State De- partment, Mr. Krock, his colleagues and officials think the Senator’s charges are exaggerated, if not untrue, and maintain he has not as yet proven his pro-Red charges against even one State Department employee, or former em- ployee, yet most of the mail from the Ameri- can people seems to favor the Senator. They undoubtedly wonder why this is so. The reason the American people either ac- cept or are sympathetic with charges against the State Department is twofold. First, the people, by and large, believe the United States was betrayed or sold out in the recent war, and thereafter, to Russia, The people were led to believe they were brought into the conflict in behalf of liberty and democracy, to vindicate the Atlantic Charter and the four freedoms, and to main- tain the freedom of small nations against ag- gressors, and they cbserve today that despite their tremendous sacrifice of life, blood, armaments, matériel, and wealth there is more slavery, more dictatorial rule, more tyranny, and a greater threat of war than before. They see in communism a greater threat than nazism, and observe that Russia has endeavored to fulfill to the letter her ideo- logical promise of world revolution, destruc- tion of liberty and all human rights, and international dicvatorship. Moreover, the American people know that at Quebec, Tehran, Yalta, and Potsdam mil- lions of people, whole nations and tremend- ous power, were given to Russia with the acquiescence of our representatives. Americans then ask: Who betrayed our country, our principles, the cause for which we fought? The people reason either our State Depart- ment must have been hand in glove with Russia, either Communist spies or friends of the Soviet dictatorship sold us out, or else our representatives were too stupid to know -what Russia was up to. In whichever case, they are waiting for the answer to this frightening situation of more tyranny and more war which now threatens civilization. Did spies sell us out or were our repre- sentatives just unbelievably stupid? Secondly, the American people read about the Hiss case. . They know how this seemingly sinister character, placed in the Government, then promoted to key positions and finally sitting alongside of the late President Roosevelt at Yalta and as former Secretary of State Stet- tinius’ adviser at the formation of the United Nations at San Francisco, was convicted of perjury based upon his espionage activities. Finally the people know that the present Secretary of State, Dean Acheson, not only refused to move against Hiss when he was carrying on his espionage activities but even after his conviction the Secretary refused to repudiate him. Why wouldn’t the people have sympathy for Senator McCartHy’s charges? Why wouldn’t they condemn the crowd that asserts these charges injure the prestige of the State Department, and the United States is injured abroad by such loose charges? What gall. Moreover, is it strange that the people re- fuse to accept the frantic denials of criticized employees that they are not Communists— when they know that many of Soviet Russia’s best friends here have no membership card in the Communist Party? In the midst of the Senator’s attack some~ one added an even worse charge than he, namely, that the State Department had acted as a home for a colony of degenerates. And the top security official of the State Department immediately stated that he had dismissed 91 of these perverts from the State Department. Whether or not he got rid of all of them we are unable to say, but police officials in Washington on Tuesday stated that the cap- ital had 5,000 of these offenders and 4,000 of them hold Government jobs. What a shocking scandal, what a curse to put on the American people. What an insult to the morality and de- cency of our Government. What a threat to our security. There is no reason to wonder at Senator McCartuy’s charges—exaggerated, poorly presented, premature or not—being sup- ported, for the people have never had ex- - plained to them why and how the Soviet was permitted to capture and enslave one-quarter APPENDIX TO THE CONGRESSIONAL RECORD of the world and seemingly with our acqul- escense. The Tablet made a fair suggestion to Presi. dent Truman when he assumed Office in 1945. It urged that he repudiate the secret Yalta agreements—many of which neither he, nor anybody else, save Alger Hiss, knew about at the time—and take full responsibility for whatever went on thereafter. It then suggested that the President re- create the State Department and investigate everyone who had acted as a catspaw, if not an agent, of those who betrayed our Nation. This was not done, although the perfect stooge then occupying the Secretary’s post was dropped and later Henry Wallace was forced out. The people have no confidence in the Typ- INGS committee, or officials who consider Senator McCartHy—a former marine—the principal menace to our Nation while they are trying to protect and hide those who were pro-Soviet in their deeds, words, and activities. What the American public wants to know is this: Why was the United States sold out at Yalta and by whom? Who put the likes of Hiss, Wadleigh in our State Department, Judy Coplon in the De- partment of Justice, and Harry Dexter White in the Department of the Treasury? Who put the 91 degenerates into the State Department and who kept them there? Who was responsible for the abandonment of China, the insane set-up in Germany, and the loss of liberty to Estonia, Lithuania, Latvia, Poland, Hungary, Yugoslavia, Ru- mania, Bulgaria, and Czechoslovakia? Who decided Formosa has no strategic im- portance? The exaggerations or misrepresentations— if they be such—of a Senator McCarty, or the ridiculing of his charges by officials, newspapers and the radio, merely concern an. effect. The administration, and the administra- tion alone, can answer to the people for the vicious results of policies which imperil the world. Senator McCartHy is but a side issue, an individual who is endeavoring to blow the lid off a malodorous situation. The threat to the United States is not so much the Soviet abroad as the pro-Soviet forces, and their defenders, in the United States. Communist Infiltration EXTENSION OF REMARKS HON. KATHARINE ST. GEORGE OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mrs. ST. GEORGE. Mr. Speaker, un- der unanimous consent I include the first of a series of articles that are to appear in the Washington Times-Herald by Mr. Frank C. Waldrop, on the infiltration of Communists and communism into our country and our Government. And Mr. Speaker, I shall ask permis- sion to insert all of these articles, as they appear, in the Appendix of the Recorp. The first article follows: Biccesr Story (By Frank C. Waldrop) Mr. Westbrook Pegler is resting, incredible as that may seem. So for a while this space will be filled with a reporter's account of 20 years spent on one news story.
APPENDIX TO THE CONGRESSIONAL RECORD It is a story of everything from riots in the streets of Washington to the silent, deadly explosions of ideas in men’s brains around the world. It touches on, as chapters in passing, two fantastic world wars and the corrupting of American policy, both foreign and domestic. The shape of the story today has all of us calculating and wondering about another war yet more awful than the last. It is the biggest news story of the twen- tieth century because it deals with events and decisions, words and thoughts that have had shattering effect on civilization and done immeasurable damage to the human race. And in this placid, beautiful city of Wash- ington, not in Moscow, were the decisions made that caused this biggest news story of the twentieth century to become what it is. The story, of course, is of communism’s rise from the cellars and jail cells of Europe to that which it is today. This writer’s connection is an account of that rise as noted by one American news- paper reporter who has only used his eyes to see and his ears to hear. The details and the evidence are all of record here in Washington, D. C., in the Library of Congress, in the Department of Justice, in the Department of State, and in the intelligence files of the Army, Navy and Air Force. The facts are nobody’s guess. They are unshakable and they are dyed with the blood of millions of humankind. Just so, they are also forever marked as the follies of men in public office who would not admit the facts, because those facts would show them wrong in their own willful judgments. Some facts this running record will de- velop in detail, are these: Communism is an international movement intended to conquer and rule the world. But that is not to say it can conquer, in the open, As a matter of fact, it has more often run backward toward internal collapse, than for= ward. It has only been kept alive by help from, outside. That help, in the past 20 years, has been primarily American. The tax dollars of United States citizens and outright United States gifts from the rich and well-to-do are the real reason for world communism’s establishment. The Communist organization in the United States is not, and never has been, a political party contesting here in the arena of free expression for public acceptance. The mas- ters of Communist action know very well they cannot win that way. The Communist organization in the United States is an arm of the international con- spiracy for power and it operates by any means, legal or illegal, to obey the orders it gets by regular courler service from Moscow. Finally, communism is not and never has been, a working class movement. Its authors, leaders, and developers the world over have been invariably from the educated and well off, who turned to conspiracy and illegal vio- lence for means to rule. These statements just above are no longer very vigorously denied in Washington. They have been proved too terribly true. But they were just as obviously true 5, 10, and 15 years ago as they are this very hour. And 5, 10, and 15 years ago these obvious truths were literally dangerous to utter in this very city of Washington. People who did so had to be prepared for the most vicious kind of punishment. This punishment was dealt them by the Communists in offices of power in the Gov- ernment of the United States. Sometimes the Communists acted directly, sometimes, through dummies. How did the Communists ever achieve. such, power and influence? . This series begins to develop the record step by step. It will deal with the idea of communism, and what that is. It will go on with the basic “who, what, when, where, and why’ of that idea in action, which is the only reason for saying that ¢om- munism is the biggest story in the world to- day. Secoud Anniversary of the State of Israel EXTENSION oF REMARKS HON. CHASE GOING WOODHOUSE OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mrs. WOODHOUSE. Mr. Speaker, under leave to extend my remarks, I insert herewith a radio talk given over WNLC, New London, Conn., on the sec- ond anniversary of the founding of the State of Israel: This week the new State of Israel is cele- brating its second anniversary. A with a long history and a great tradition, after tragic years of exile, have founded a new state. It is a homeland for the Jewish people, but it is more than that. It is the bridgehead of western civilization and of democracy in the Middle East, and as such it 1s an important factor in our hope for a world at peace. In 2 years Israel has gone forward in a way which no purely logical forecast could have predicted. It has achieved to this remarkable extent because of the spirit of its people. They are imbued with a deep religious sense, with a deep purpose. They have a goal. last fall as I watched the men and women in the streets of Tel Aviv I had a feeling of viewing a great crusade. The men and women showed determination and action. They hada purpose. Above all there is about them as we saw them at work in the streets, in the hotels, even in the recreation camps for the immigrants, an aura of happiness, a sense of people who had found their place in life. In a very real degree Israel epitomizes a force which the world needs if we are to find peace. We must have a revival of a truly religious spirit. The great scientific inyen- tions which have made possible modern in- dustry and also modern warfare make it es- sential that we act in accordance with a genuine religion. I speak not of any sect, theology or dogma but of the idea of a power above and beyond man which inspires him with a purpose, with an ideal of responsi- bility to humanity, and of immortality achieved by fulfilling that responsibility. Our lives are not our own. They are for the service of our group. The concept of the size of that group has been expanded by the scientific inventions which have all but eliminated time and space and have made the world so small. The degrading results of-the abandonment of religion by the Nazis, their wiping out of entire communities, the decimation of the people of the Jewish faith in Europe, have brought home to the Western World the fact that our culture, our entire way of life, has a deep religious basis. Where religion is lost, people revert to barbarism, and the actions of the leaders in control of the So- views reinforces and. emphasizes that, reali- zation. Faith, a belief that life has a purpose, that . We each have a responsibility. toward mak-. .. ing that purpose a reality not only for our- selves, not only for our immediate family, not only for the people of our country but people - A2997 for the people of the world, is essential, if we are to have peace and to survive as civilized human beings. This deeply religious feeling of brother- hood, of the oneness of humanity, of the dignity and worthwhileness of the individual lies at the very core of American life. In days of prosperity and security it is likely to rest a bit below the surface, but in these days of doubt and insecurity we are feeling the need for its more open expression. Nowhere have I seen it so happily ex- pressed as in Israel. There it is evident in the faces and bearing of the men and women one sees hurrying through the streets of Tel- Aviv or at work in the shops and on the farms. Here is a nation brought into being after centuries of suffering, suffering which culminated in a threat of annihilation; brought into being by leaders who refused to see difficulties because they saw a goal which had to be achieved if their people were to be saved. And the men and women who have fol- lowed the leaders, who have with the help of friends in America and elsewhere found their way through struggle and hardship from eastern Europe, from North Africa, from Yemen are imbued with the same deep feel- ing of a great religious crusade in which they are an integral part. In Israel we have a vividly dramatic pres< entation of the idea of brotherhood, of obli- gation to one’s fellows. We hear much of the achievements of Israel. Perhaps we should talk more of the difficulties which have been overcome by sheer will power, de- votion, and hard work, and of the difficulties which are still present. The economic prob- lem this new nation faces is intense. Never before has a nation invited immigrants to its shores in such numbers, percentagewise, when. its resources were so limited, its agri- culture and its industry so undeveloped, its housing so short, its government so new, its peace so unsure. The population of Israel has just passed the 1,000,000 mark. Of this million nearly £400,000 men, women, children, the old and infirm, as well as the young and strong, have arrived in the past 2 years. The leaders of Israel had promised a homeland to their people in need anywhere in the world. In spite of the difficulties they are keeping their promise and the door is open. These immigrants include highly trained professional people from eastern Europe and also children from Yemen who have never before arrival in Israel seen a bed or worn 2 pair of shoes. Currently, the buik of the immigration is of underprivileged people from North Africa and from Yemen. They have to be oriented in reception camps, taught Hebrew, prepared for work on the farms, jobs and houses found for them. The task is colossal. Every possible help must be given this State of Israel in order that they may build a material basis for their structure now grounded so largely on faith and the will to achieve. One great need is for private investment. Israel must have irrigation projects if the land is to support its growing population. American engineers have carefully prepared plans which are feasible. With water the land can produce in abundance. Already citrus fruits provide some two-thirds of Israel’s exports. There is need for more industry. To date industry has been carefully planned with emphasis upon producing articles which re- quire relatively small amounts of imported materials. This is necessary because Israel must still import one-half its food and total imports are nearly seven times as great as its exports. . New idustries are being developed. Amer ican capital is helping in the construction of a steel mill. A tire and tube factory is being built, financed in part by American
A2998 interests. A company backed by several large American labor groups is prepared to construct $2,000,000 worth of housing. This is just a beginning. The future of Israel depends on peace with the Arab states, in the development of a sound economy, and on the willingness of the United States and Great Britain to give the new nation—al-~- ready a member of the United Nations—~ financial and political backing. This help must be forthcoming. For these pioneers in Israel are serving not only their own people. They are serving all peace-loving and God-fearing people everywhere. They are building a bridgehead of democracy and humanitarianism in the Middle East where the heavy hand of tradition and of feudalism has so long held static living conditions of hunger, misery, poverty, want, illiteracy, and disregard for human life and for the dignity of the individual. Israel with its close ties with the west and its traditional background of the east is in a unique posi- tion. It is permeated with the spirit of de- mocracy, With the gospel of botherhood, and of life with a purpose. Such people are the hope of peace, for peace cannot be built out of material things alone; peace comes only out of the minds of men. So today peace-loving peoples can whole- heartedly offer congratulations to Israel on its second anniversary and give serious thought to further assistance in its great undertaking. Is America Losing Its Way? EXTENSION OF REMARKS OF HON. EDWARD H. REES OF KANSAS IN THE HOUSE OF REPRESENTATIVES Monday, April 24, 1950 Mr. REES. Mr. Speaker, under per- mission heretofore granted me by the membership of the House to extend my remarks in the Rrecorp, I am enclosing a short editorial by one of the outstanding editors in my State, Mr. A. Q. Miller. It is entitled “Is America Losing Its Way?” I commend it for your reading and thought. Is America LOSING Its WAY? (By A. Q. Miller) During the month of February each year the Nation’s thoughts turn to two great Americans—George Washington and Abra- ham Lincoln—men with great minds, great visions and great souls, men who loved their country dearly and who gave it a full measure of their loyalty. The former is credited with having established the Union, and the latter with having preserved it. Like others of our founding fathers, these two great Americans took the people into their confidence and discharged their duties with a singleness of purpose, placing the Na- tion’s welfare ahead of personal and political gain, It was on this kind of foundation that America was built. For 160 years America stood like the Rock of Gibraltar—upright be- fore the world, respected and honored, the symbol of democracy and the envy of the free nations of the earth. America taught that in a democracy people derive their just powers from the consent of the governed, and welded together a Nation conceived in liberty and developed under the philosophy of free enterprise. Here for a century and a half, in such an atmosphere, was built a Nation with the greatest liberty and freedom, the highest standard of living of any nation on earth. It was in this atmosphere, with such lofty ideals, that our forefathers wrote the decla- ration of Independence, Constitution, and Bill of Rights, which was declared by some foreign governments to be the greatest Char- ter of Liberty ever penned by man. Henry Clay declared he would rather be right than President. George Washington said the first duty of every American was to America, to do justice to all. Said Wash- ington: “Let us raise here a standard to which wise and honest men can repair,”— “a government,” Lincoln declared, “‘of, by and for the people, which should not perish from the earth.” After the Civil War, out of his great heart, Lincoln said: “With malice toward none, with charity for all, with firm- ness in the right, as God gives us to see the right, let us strive to finish the work we have begun and bind up the Nation’s wounds.” It is a far cry across that century and a half of illustrious history to the present era of greed and p ‘er politics, The country has been led down the primrose path to the brink of disaster by false leaders, ostensibly into the lands of milk and honey, upon promises of security if the people would give up some of their liberties, with the inevitable result that they are losing both their se- curity and liberty. Somehow America seems to have lost some of its ideals, patriotism, and love of country which in the early days animated individual citizens and inspired them to a greater na- tional pride and spirit. Our country and our world can well af- ford to turn their thoughts to such examples as George Washington at Valley Forge and Abraham Lincoln at Gettysburg. Renazification and Remilitarization of Germany EXTENSION OF REMARKS F HON. WILLIAM T. GRANAHAN OF PENNSYLVANIA IN ‘THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. GRANAHAN. Mr. Speaker, under leave to extend my remarks in the Rrc- oD, I wish to include an address which I delivered on Thursday evening, April 20, 1950, at a public meeting held at Mann School, Fifty-fourth and Berks Streets, Philadelphia, sponsored by the Wynnefield-Overbrook Committee To Stop the Renazification and Remilitari- zation of Germany and its affiliates, the Wynnefield Hadassah, and Jewish War Veterans, Post 148, of Wynnefield: Ladies and gentlemen, I am always grate- ful for the opportunity to talk to you and discuss matters of mutual concern, and to this end such meetings as this serve an ex- ceedingly useful purpose. I am interested in learning your problems and I am likewise anxious to acquaint you with mine, as I view them from the Nation’s Capital. Tonight it is my duty to report to you about one of the most unhappy subjects within our recent memory. It is not the war, but its aftermath and specifically its aftermath in Germany. We who had fer- vently hoped that the end of hostilities would herald an era of peace must now con- front the fact that there is no peace. And there will be no peace until the western pow- ers correct the tragic mistakes made as the result of their failure to keep faith with the war dead, the veterans of the great con- flict and the millions of living and deceased victims of the Nazi reign of terror, APPENDIX TO THE CONGRESSIONAL RECORD The continuation of the so-called cold war is a menace to world peace, but we likewise face another problem no less real and con- siderably more vexing in the western zone of Germany. This latter problem—the re- birth of extreme nationalism and remilitari- gation—is too often lightly dismissed with the declaration that “we are doing all that we can.” But are we? Ladies and gentle- men, let us face the fact. We are not, and unless we rise to our responsibilities now, it may well be too late. To put it bluntly, the allied program in western Germany is destined to be a flat failure if the participat- ing nations do not act at once to stop ap- peasement, stem the growing tide of nazism and implant the seeds of democracy in such a way that they will flourish and not be stamped out under the heels of Nazis who have been permitted to rise to positions of prominence and influence by wishful-think- ing representatives of the triumphant west- ern powers. The failure of the west to denazify Ger- many is best summed up by the question of an unreconstructed nationalistic German editor who recently asked: “Who learns from whom?” Five years of occupation have taught us that if anything is on trial in Germany, the “defendant” is not the Ger- man nation, but democracy. Our foreign correspondents, qualified students of world affairs, and our wire services bring this lesson home to us daily in disturbing news reports. What do these dispatches reveal? Here are but a few cases: Ludwell Denny in’ the New York World-Telegram reports: “Scores of new sheets have announced pub- lication plans, and an estimated three- fourths are former Nazis. Among the old Hitler and Goebbels aids who are active again are Max Winkler, Herbert Cobaltsky, Othmar Best, and Max Willmay.” The Stuttgarter Zeitung discussing the British financial crisis writes: “It is very possible that Great Britain’s value to America @S an ally will soon sharply depreciate. This would be tremendously important for us Germans, because recent months have shown that it is a definite policy of the British for~ eign office to hold down Germany economi- cally and politically, * * * If Anglo-American friction increases and Britain’s situation be- comes weaker, we may expect that America may assign an increasing importance to Ger- many’s role on the continent and lend a more willing ear to German wishes.” In this city, the Philadelphia Inquirer edi- torially high lighted an unsavory aspect of the German situation when it reported: “A German town in which Nazi tendencies merit ‘ watching is Wolfsburg, in the British occupa- tion zone. Wolfsburg was founded by Hitler in 1938 as the site of the Volkswagon auto- mobile plant * * * Itappears that there are strange goings on in Wolfsburg. The Nazi straightarm salute has been seen and the Horst Wessel song, Nazi anthem, heard. Furthermore, in a city election the Nazi-like Deutsche party polled a popular majority of 12,619 votes as against 7,800 by the social democrats and 4,009 by the Christian demo- crats. Later the two democratic parties swung together and with the aid—of all things—the Communists, kept the Fuehrer- heilers from taking over, All of this should be a sharp warning, not only to the British, but to all other occupation forces, against a revival of Nazism either openly or under- ground.” These shocking disclosures are not new. They are not isolated cases. Reports on sub- surface Nazi activities in Germany have been repeated time and again since VE-day. Unquestionably much of the extreme na- tionalism v7hich has come to the fore in Ger- many has been deliberately inspired by the Communists who are practicing their tra- ditional policy of divide and conquer. The stakes in Germany are high. Let us not de- ceive ourselves: the Soviet union will not
APPENDIX TO THE CONGRESSIONAL RECORD spare any effort to reap the rich reward on the Rhine. Evidence of this policy was fur- ther substantiated last week in a communi- cation from Major General Maxwell D. Taylor. He warned of the possibility of more disor- ders in Berlin. ‘‘These,” he said, ‘‘can be in- stigated by Communists along the Soviet boundary or even well within the western sectors, where demonstrators can stage sur- prise raids from s-bahn or u-bahn stations. * * * The few incursions which have recently taken place have been small and have hardly justified the adjectives which have at times prought forth. However, there is quite likely to be an increase in the ‘spontaneous’ in- stigated disorders in the coming weeks. Some of these,” General Taylor asserted, “may even become quite serious and may re- quire stern measures. I feel sure that we shall meet any such situation with firmness. While there is no blinking*at the evidence of a persistent Communist desire eventually to take over Berlin and to absorb it into the Communist-dominated eastern state, the de- sire will remain unfulfilled if we know de- termination.” The resurgence of German nationalism is @ major threat to world peace, but it should also be recognized that its rise is not the exclusive fault of the Western Powers and that a lion’s share of the blame can rightly be attributed to the Soviet Union in its quest for world domination. It is no secret that the eastern regime, with its artificial boast of freedom from So- viet control, is being used to inflame na- tionalist passions in the western zone of Ger- many. The New York Post points up this fact in its comment that “The climax of the performance, according to the Russian svript, will come when western Germany’s mount- ing insistence on similar independence forces the United States to pull out before it loses every vestige of German support. In short, the Soviet Union has resolved that the only remaining German problem is not that coun- try’s possible future with fascism but whether the east or the west can succeed In luring the new Reich into a carefree love affair.” Ladies and gentlemen, the disgusting spec- tacle which occupies our attention in Ger- many sickens the heart of freedom-loving people throughout the world. ‘The war isn’t over until the peace is won, and the state of affairs in Germany today is a far cry from peace. There can be no real peace when we continue to permit our- selves to be diplomatically boxed in a corner, surrounded by the threat of communism, a rebirth of nazism in its most despicable form, utter lawlessness, and the remilitari- zation of our unreconstructed enemies. It is high time that the Western Powers redeem themselves in the eyes of the world, in the eyes of the veterans, in the memory of the millions of dead, including the 6,000,- 000 Jews gassed and starved and subjected to horrible agony. You know and I Know that there can be no peace so long as thou- sands of victims of the Hitler reign of terror still stalk Europe homeless, uncared for and unwanted. The fate of thece tragic, persecuted people is the shame of the world. I cannot believe that any American in his heart would deny them hope, and the moral, spiritual, and financial support so necessary to reestablish. themselves to their rightful position in the community of nations. If anyone harbors any doubts to the effect that the Jews are no longer persecuted in Germany, I feel sure that this information will dispell them. A few nights ago, the following report was brought to my atten- tion: A substantial number of Jews in the French occupation zone of Germany are re= ceiving post cards, postmarked Frieburg, requesting them to “Report to the- state crematorium for extermination,” according to a dispatch appearing in the newspaper, . Droit Et Liberté, » One such postcard, the account stated, ad- dressed to Jews at Emmerdingen read: “As you have reached the required age, you should report immediately to the state crematorium, portal No. 9, furnace No. 36, door No. 5 in order that your bodies may be burned. You should bring some firewood, coal, and a container for your ashes, which will be used for the manufacture of soap. You should close all pores and openings in your bodies so that your gases will not poison employees at the crematorium.” That, ladies and gentlemen, is but one sample of the type of revolting literature being distributed to Jews in Germany today. And some people still have the gall to say that the Jews are not being persecuted. The solution of the German problem is a world problem and its solution is our collec- tive responsibility. Governments are made up of people and we are all subject to human failings, but if we are alert to the dangers inherent in the German situation and con- tinually make our will known to our elected representatives and Government officials our demands will be heeded. Every week brings hundreds of letters to my Washington desk decrying the policies of the western powers toward the extreme nationalists in the western zone of Ger- many. Their writers have just cause to be alarmed, and yes frightened and fearful of the future. I can fully appreciate their con- cern. As a veteran I know the horror of war. As your Congressman I am intimately ac- quainted with the many tragic problems of Jews in all walks of life, and as your elected representative I have and always will do the utmost in my power to assist in solving these problems. Moreover I consider it a sacred obligation. because I have fought for every legislative measure designed to stamp out Nazism and restore the right of people who have undergone intolerable racial and re- ligious persecution. I might also add that your kind support and guidance has been an invaluable help to me. But, ladies and gentlemen, one man, or one group of men, or one government cannot hope to solve the problem alone. Its solu- tion depends upon a combined effort. As the foremost nation in the world today, I de- mand that the United States assert its lead- ership among nations and assume the re- sponsibility of charting the course which not only will prevent Germany from ever being a menace to world peace again, but likewise secure once and for all time the inalienable rights of all people regardless of race or creed to enjoy the fruits of freedom without fear. The road ahead is long and beset with many pitfalls. We cannot hope to proceed without making any mistakes. The impor- tant thing is that we correct those mistakes before they cripple our program. That we have made some progress is certain, but in- evitably our attention was diverted to the crisis occasioned by the high-handed tactics of the Soviet Union. It is time that we con- centrate our efforts on the matters at hand in Germany particularly as they affect the western zone. We will rise or fall according to our determination to carry out our sworn pledge to de-nazify the German nation so that it never again will constitute a threat to peace in our lifetime, and in the lifetime of our children. Anything less would be a betrayal. L urge, with all the power at my command, that we prevent the election of former Nazis to public office, that we stop a remilitariza- tion program, that we enforce law and order under heavy penalty, that we strengthen our program of preventing further territorial ex-~ pansion by the Soviet Union in Germany and elsewhere throughout the world. Furthermore, I recommend an expanded program of assistance to the persecuted racial and religious groups which have experienced the venom of Hitler and his sympathetic suc- cessors, A2959 We must all have a hand in the great cru- sade to stem the tide of extreme nationalism and the remilitarization of an enemy nation that twice in our lifetime has attempted to enslave the world. We cannot afford to give Germans weapons because they will be turned on us. We are in a fight to spread the gospel of democracy and freedom as a substitute for nazism, fascism, socialism, and communism. It is perhaps the most important fight of our time for if we lose it we will have lost everything. Let us not rest until we win. Thank you. America’s Growing Unemployment EXTENSION OF REMARKS F HON. HENRY M. JACKSON OF WASHINGTON IN THE HOUSE OF REPRESENTATIVES Tuesday, April 25, 1950 Mr. JACKSON of Washington. Mr. Speaker, in my opinion, America’s No. 1 problem is our growing unemployment. While prosperity continues, and employ- ment and production are high, these very facts may hide from us the growing paralysis of unemployment. The drop in joblessness of a half million from March to April may cause us to forget that in May and June, over a million and a half persons will be emerging from our schools and colleges and will be added to the list of job seekers. I am inserting in the Recorp an ex- cellent analysis of this situation by Dewey Anderson, director of the Public Affairs Institute, in a recent letter to the Wash- ington Post. I am also inserting an editorial that appeared on Sunday, April 23, in the Washington Post, commenting on Mr, Anderson’s analysis. I commend both of these commentaries to my colleagues. The matters referred to follow: FaLrLinc EMPLOYMENT: Is Ir Just a Bocey? (By Dewey Anderson, executive director, Public Affairs Institute) Despite high levels of economic activity, unemployment p-:-sists, is becoming wide- spread, and causes Herblock’s Uncle Sam to cast a disturbed eye on current economic curves. What explains it all? In a nutshell, this country is experiencing serious and possibly critical unemployment which is rooted in a deficiency of effective private demand in re- lation to a rapidly growing potential of full- employment output, Stripped of this economic gobbledegook, we just don’t seem to be able to expand our private purchasing fast enough to take off the market all that our advancing technol- ogy produces. So, new workers entering the labor force don’t get jobs, and only a fraction of the million plus laid off since 1948 have been rehired. Reverting to the more precise descriptions of economics and statistics, let’s take a look at the facts. Some people would have us believe that this unemployment scare is a bogey, that what we really have is a couple of distressed industries, textiles and coal, and a couple of distressed areas, New England and the Mid- dle Atlantic States. Well, hard as it would be to solve unemployment even in these rele atively circumscribed industries and reg, gions, joblessness is not confined there. ~