APPENDIX TO THE CONGRESSIONAL RECORD ® critical constitutional field, what was held to be valid or lawful has been held to be invalid or unlawful, or the reverse. More- over, 1t is the judiciary, not the Congress, which effected the legislative change. For over a century, a clear distinction had been recognized between the regulation of commerce, which is intercourse in all its forms, and every circumstance of production. Thus, manufacturing, mining, the extrac- tion of oil, construction, agriculture, all were consistently held to be outside the commerce power even though the producer intended to sell in other States, or abroad. The at- tempt to regulate such activities under the guise of taxation was identified and rejected. It was repeatedly emphasized that the ap- plication of the dominant national power over domestic and foreign intercourse to con- trol local activities was justified only where there was a direct and substantial relation- ship to commerce. Now, the area of Federal control has been indefinitely extended to the most intimate parochial matters by advanc- ing the commerce power and sustaining its application to whatever may affect commerce. It reaches the village cow if, mayhap, any part of her modest milk supply is sold whcre the dairy of another State delivers. It rules the charwoman, the janitor, the clevator op- erator, the window cleaner who serves a building the offices of which may be occu- pled by those actually or prospectively en- gaged in interstate commerce. So delicate and tenuous are the judicial refinements that Federal control of the employment relations among the tenants of a structure may change with the percentage of those so engaged. Sometimes it must appear to the bewildered layman and his confused lawyer facing the obscurities of shifting and divided opinions, all the way from the courts of original error to those of ultimate conjecture, that the basis of Federal control is often as remote from its subject as the ‘flea in the hair of the tail of the dog of the child of the wife of the Wild Man of Borneo.” One thing is certain. It extended the do- main of Federal power fur beyond the uni- form conception of any previous court. It now embraces agriculture so completcly that the Secretary of Agriculture may fix the quota of crops, amend the penalties by radio, and prohibit the grower from feeding his surplus to his chickens, since that may affect what would otherwise be a necessary purchase in the stream of commerce. What is far more serious is the fact that in instance after instance, like placing the control of insurance under the commerce power after 75 years of accepted exclusion, or in making it lawful and right for labor com- binations to do that which remains unlaw- ful and wrong for any other combination, measured by the standard of purpose, the Court is reversing a fundamental principle of criminal and civil Jaw in contradiction with not only long-standing judicial inter- pretation, but the obvious refusal of Con- gress to rewrite the law, as the Court did. Is this judicial legislation? Hear the dis- sent of the Chief Justice and Justice Roberts as the Court removed the labor combination from the Antitrust Act: “I venture to say that no court has ever undertuken so radi- cally to legislate where*Congress has refused Bo to do” (312 U. S. 219). You may approve or disapprove the result, but it is the judicial and not the legislative branch of the Gov- ernment that is amending the statute in the face of a long-standing and accepted con- struction, No responsible individual or group in in- dustry, or at the bar, or on the bench, ques- tions the natura! right of association or the necessity of giving effective protection by law to the right of labor organizations to pro- mote and safeguard the rights of their mem- bers by every lawful means, and through agents of their own free selection. But for more than a decade we have witnessed a determined effort by legislation and judicial interpretation to advance the interest of organized labor by granting to that combina- tion an exclusive and unprecedented priv- llege to do wrong. No principle is more firmly fixed in the foundation of our system than that of equal- ity before the law. This is neither the time nor the place to discuss the general labor problem, as old as the parable of the laborers in the vineyard, but it is vital to our insti- tutions to observe that all combinations no longer look alike to the law. We have de- liberately exempted the labor combination from the general law of agency unless it spe- cifically ratifies particular acts of its officers and agents before or after their commission, & policy which permits the establishment of criminal or civil HMability only in the pro- tective deliberations of afterthought. In exempting the labor combination from the civil or criminal penalties of the Anti- trust Act, the prevailing opinion of the Su- preme Court held that, provided there was no collusion with a nonlabor group, the law- fulness or unlawfulness of such combination was not to be determined by its purpose. This not only reversed the established rule which forbade the arbitrary exemption cf one group or class from a law which applied to all others under like circumstances, but it abandoned a test of legality for the indi- vidual or the combination, as old as the common law and offensive to common sense. Never, betore 1941, had any court in the United States, at any time, declared that purpose was of no consequence in deter- mining legality. The Justice who laid down that principle in the Hutchinson case doubt- less forgot that his great mentor, Mr. Justice Holmes, had, many years before, enunciated more clearly than perhaps anyone else the accepted doctrine, ‘“‘No conduct has such an absolute privilege as to justify all possible schemes of which it may be a part. The most innocent and constitutionally protected of acts or omissions may be made a step in @ criminal plot, and if it is a step in a plot, neither its innocence nor the Constitution is sufficient to prevent the punishment of the plot by law” (Aiken v. Wisconsin, 195 U.S. 206). The common sense of the man on the street accepts purpose as the practical test of morality or legality. Does one use the thoroughfare to move from place to place, or to pick pockets? Does he hire « cab or enter a store for an innocent or a wrongful purpose? The average man has no difficulty in applying this common-sense test and arriving at his conclusion. The inevitable results make it lawful and right for one vast combination to do that which re- mains unlawful and wrong for any other when mesaured by the same test. This cre- ates in the minds of many otherwise well- disposed citizens an invincible conviction that they possess a vested right to do wrong in the pursuit of their purposes. This is clearly demonstrated in the reiterated asser- tion by both public men and labor leaders that the right to strike is absolute. If it is, it is the only absolute right known to our political system. For life itself is held at the call of the Republic. Twelve million men and women have demonstrated that for 4 years. Your liberty, to preserve that on which this Nation was founded, and the Bill of Rights demanded, ts restricted in a thousand ways, that the liberty of others may equally be pre- served and that we may live in peace und safety. We cannot even pursue our happi- ness absolutely. The founding fathers never even guaranteed it, although that is now a fashionable political promise. They only as- sured us we could pursue it. Catching up with it is a matter of individual speed and determination. “Neither the fourteenth amendment, nor the common law, gives the absolute right to strike,” said Mr. Justice Brandeis, announcing the undisputed prin- ciple for a unanimous court 20 years ago. “A strike may be illegal because of its pure A1021 pose, however orderly the manner in which it 1s conducted” (Dorchey v. Kansas (272 U. 8. 811)). The practical result of the present perver- sion of law and legislation is not only the reversal of this principle of law and morals, but the practical surrender of the Govern- ment to the combination that is now above the law. The Acting Secretary of the Navy, Mr. Edison, responding to a congressional inquiry during a strike at the Bohn Alumi- num Co. of Detroit reported that the Navy had sought permission from the picketing union to remove the Navy's plans and blue- prints from the struck plant. “The repre- sentatives of union local No. 208," wrote Mr. Edison, “were given full access to the files on the Navy contracts and they were informed that the delay in releasing patterns for de- livery was seriously jeopardizing the manu- facture of airplane engines at the Naval Air- craft Factory. “At the end of the discussion, the union representatives stated that * * * their answer was emphatically ‘No’ and that they would not let patterns or inspected castings be removed. No further action was taken by the Navy Department to remove the patterns and castings.” By virtue of the Norris-LaGuardia Act, we have added to the citizen's inability to hold a labor combination lable for any injury it may inflict upon him the further assurance that while the court may prevent irreparable injury in any other controversy, by any other group, it is helpless to do so in a labor dispute. Under the new dispensation, the law is silent in a labor dispute as in war, or on oc- casion becomes an ally of one of the parties. The individual is dissolved in collectivism. The hitherto undisputed right of a man to choose and pursue his livelihood without molestation or the consent of any other is disappearing from the American scene. In- dividual liberty in labor disputes dics by law. The most valuable of many personal and property rights becomes a subject for po- litical barter. Let us recall tonight, in memory of the great figure whose memory we meet to honor, that the ultimate purpose of those who es- tablished the United States was to secure the blessings of liberty for themselvcs and their posterity. They believed the people alone were the source of political power. They sought a freedom more comprehensive than any other people ever contemplated. They recognized and asserted not only the natural rights man derived from his Creator but declared that the varying qualities and energies of men were the creative source of all individual and social progress. They bec- lieved with Edmund Burke that liberty was not only a private blessing but the vital spring and energy of the State itself, which has just as much life and vigor as there is liberty in it. They believed with Lincoln that no man is good enough to govern an- other man without his consent. They be- lieved with Washington that all obstructions to the execution of the laws, all combina- tions and associations under whatever plausible character, with the real design to direct, control, counteract, or awe the regular deliberations and action of the constituted authorities, are destructive of this funda- mental principle and of fatal tendency. They expressed their philosophy in the declaration. They made it effective through the Constitution. They established a perma- nent domain of immunity from govern- mental interference. For they did not seek rights, but sought to compel their recogni- tion and security. To this end, they surrounded 79 grants of political power with 115 prohibitions and limitations upon its excrcise. Fvery check and balance was shaped from their knowledge of men and history. They wrote into the Bill of Rights, centuries of practical experi- ence with every abuse of Government, They
A1022 forbade the things the men of their blood had learned from death and persecution, on battlefield and scaffold, by prison and con- fiscation, impaired liberty, and destroyed the common man. We know this system of Government built through the hard racial experience of many centuries has done more to preserve liberty, justice, and opportunity for the individual than any other political plan devised by man in dealing with its future. Are we to forget the umazing experience and permit the im- pairment and abandonment of all that has so nobly stood the test of time, or set about adopting our institutions and policies to the new conditions of our day, without abandon- ing any of the political principles that have stimulated our growth and power? Aladdin found the lamp that satisfied his wishes but it grew old and tarnished, and his ignorant associate was easily seduced into exchanging !t for a glittering successor with none of its magic power. “I Know no lamp by wich to guide my footsteps,” said the wiser Patrick Henry, “but the lamp of experience.” The great figure that stands unique beside the cradle of the Republic surrendered power when he could have kept it. He sa’, we know from his letters to Madison and Knox, the discordant colonies of the Confederation move from anarchy and confusion into pros- perity and tranquillity under the principles of the new Government. His letters to his associates, like his Farewell Address, are fillcd with the admonitions cf his experience. “Revert to your principles and secure them from impairment,” he urges again and again. He presided over the Constitutional Conven- tion. He addressed it but once, but what he said might be read with profit by those who compromise and betray principles of government it produced, or advocate their abandonment. At a critical moment, it looked as though the great effort of the Convention would fall. The conflict between the small States and the large had reached a critical point, the issue between local and national government threatened a destructive dissension. A plan was proposed to save the situation: it seemed to some the only way out; to others, worse than failure. Then, for the first time, and the only time, Washington spoke: “It is too probable that no plan we propose will be adopted. Perhaps another dreadful confitct is to be sustained. If, to please the ‘people, we offer what we ourselves disapprove, how can we afterward defend our work? Let us Yratse a standard to which the wise and just can repair. The event is in the hands of God.” Constitution of AMVETS (American Vet- erans of World War II) EXTENSION OF REMARKS HON. WILLIAM F. KNOWLAND OF CALIFORNIA IN THE SENATE OF THE UNITED STATES Friday, March 14 (legislative day of Wednesday, February 19), 1947 Mr. KNOWLAND. Mr. President, I ask unanimous consent that there be printed in the Appendix of the Recorp the constitution of the American Vet- erans of World War I. Pursuant to the rule, I have secured an estimate from the Fublic Printer, who states that the cost of printing will be $266.25. There being no objection, the matter was ordered to be printed in the Recorp, as follows: Constrrution or AMVETS (Amxnaican Vur- ERANS OF Wortp War I) We, the American Veterans of World War Hi, fully realizing our responsibility to our community, to our State, and to our Nation, associate ourselves for the following pur- poses: To uphold and defend the Constitu- tion of the United States; to safeguard the principles of freedom, liberty, and justice for all; to promote the cause of peace and good will among nations; to maintain inviolate the freedom of our country; to preserve the fundamentals of democracy; to perpetuate the friendsbip and associations of the Sec- ond World War; and to dedicate ourselves to the cause of mutual assistance, this by the grace of God. ARTICLE I The name of this organization shal) be AMVETS (American Veterans of World War IT), and it shall be hereinafter referred to as AMVETS. ARTICLE Ir The aims and purposes of this organiza- tion are as follows: 1. To serve our country in peace as in war; to build and maintain the welfare of the United States of America toward tasting Prosperity and peace for all its inhabitants. 2. To encourage, in keeping with the poli- cies of our Government, the establishment of &@ concrete plan to secure permanent inter- national peacc, and to assist in the mainte- nance of international pe:ce. 8. To inspire in our membership a sense of responsibility, and to develop leadership, for the preservation of our American demo- cratic way of life. 4. To help unify divergent groups in the over-all interest of American democracy. 5. To train our youth to become purpose- ful citizens in a democracy with full knowl- edge of the responsibilities as well as the privileges of citizenship. 6. To cooperate with all duly recognized existing veteran organizations in the fur- therance of the aims of World War II vet- erans. 7. To insure the orderly return of the vet- eran to civilian life by protecting his rights as an individual while he is still in uniform. 8. To expedite and assist in the rehabili- tation of the veteran by maintenance of em- Ployment services, sponsoring educational opportunities, and providing counsel on in- surance, housing, recreation, personal prob- lems, hospitalization, and veterans’ benefits. 9. To act as a Maison agent between the veteran and the Government. 10. To provide an organization to encour- age fellowship among all veterans of World War II. 11. To keep the public forever reminded that the veterans of World War II fought or served to preserve peace, liberty, and democ- racy for their Nation. ARTICLE II. ORGANIZATION Section 1. AMVETS shall be organized with a uational headquarters, located at Washington, D. C., and a department in the District of Columbia and in each State and Territory of the United States. Local posts shall be formed within such departments, and intermediate administrative groups may be created by the national executive com- mittee and the department executive com- mittees, to function within their respective jurisdictions, where such action is deemed advisable. Szc. 2. The national headquarters shall be composed of the national officers, both elec- tive and appointive, and the members of the nationa] executive committee. It shall be the duty of the national officers to ad- vance the cause of AMVETS, to carry out its aims and purposes and to provide the ma- chinery for realisation of the plans and poli- APPENDIX TO THE CONGRESSIONAL RECORD cies established by the mandates of the na- tional convention. 8Sxc. 8. The United States is divided into the following districts: District I: Maine, Vermont, New Hamp- shire, New York, Rhode Island, Mazsachu- setts, Connecticut, New Jersey; subdistrict A: Maine, Vermont, New Hampshire, New York; subdistrict B: Massachusetts, Connec- ticut, Rhode Island, New Jersey; subdistrict home offices: New York City and Boston. District Ii: Pennsylvania, Maryland, Dela- ware, West Virginia, Virginia, North Caro- lina, Kentucky, Tennessee, District of Co- lumbia; subdistrict A: Pennsylvania, Mary- land, Delaware, West Virginia, Washington, D. C.; subdistrict B: Virginia, North Carolina, Kentucky, Tennessee; subdistrict home of- fices: Harrisburg, Pa., and Arlington, Va. District M1: South Carolina, Georgia, Flor- ida, Alabama, Oklahoma, Mississippi, Loui- siana, Arkansas; subdistrict A: South Caro- lina, Georgia, Florida, Alabama; subdistrict B: Mississippi, Louisiana, Arkansas, OKla- homa; subdistrict home offices: Miami, Fila., and New Orleans, La. District Iv: Ohio, Indiana, Dlinois, Mise souri, Iowa, Michigan, Minnesota, Wisconsin; subdistrict A: Ohio, Indiana, MWlinois, Mis- sour!; subdistrict B: Iowa, Minnesota, Wis- consin, Michigan; subdistrict home offices: Chicago, Ul., and Detroit, Mich. District V: Kansas, Nebraska, South Da- kota, North Dakota, Idaho, Wyoming, Colo- rado, Montana; subdistrict A: Kansas, Ne- braska, South Dekota, North Dakota; subdis- trict B: Colorado, Wyoming, Idaho, Montana; subdistrict home offices: Omaha, Nebr., and Denver, Colo. District VI: Texas, New Mexico, Arizona, Utah, Nevada, Oregon, Washington, Califor- nia; subdistrict A: Texas, New Mexico, Ari- zona, Utah; subdistrict B: California, Nevada, Oregon, Washington; subdistrict home offices: Dallas, Tex., and San Francisco, Calif. ARTICLE IV. MEMBERSHIP Srcrion 1. Any person who served in the armed forces of the United States of Amer- ica, or any American citizen who served in the armed forces of an Allied Nation of the United States, on or after September 16, 1940, and before the date of termination of hostilities as established by the Government of the United States, ts eligible for regular membership in AMVETS, provided such serv- ice when terminated by discharge or release from active duty be by hono able discharge or separation. No person who is a member of, or who advocates the principles of, any organization believing in, or working for, the overthrow of the United States Govern- ment by force, and no person who refuses to uphold and defend the Constitution of the United States, shall be privileged to become, or continue to be, a member of this organ- ization. 8rc. 2. Honorary membership shall be based upon citation from a post, department, the national executive committee, or a na- tional convention, in recognition of out- standing patriotic services rendered to war veterans or to the Nation. Not more then one honorary member shall be cited per year by @ post or department. Nothing provided herein shall abrogate existing memberships. Any citing authority may name any number of deceased veterans as honorary members during any year. ARTICLE V. NATIONAL CONVENTION Srcrion 1. A national convention shall be held annually, prior to October 1, at a time and place fixed by the previous convention, and shall constitute the legislative body of AMVETS. Src. 2. The national convention shall com- prise the following delegates: (a) Each local post shall elect one dele- gate and one alternate.
APPENDIX TO THE CONGRESSIONAL RECORD (b) Each department shall choose one delegate and alternate at its convention, to be held at least 30 days, and not more than 90 days, prior to the national convention. (c) Each member of the national executive committee shall be entitled to one vote at the national convention, but the national commander shall vote only in case of a tie. Src. 8. Each delegate shall be entitled to one vote. Alternates shall have all the rights and privileges of their delegates, except they shall vote only in their delegate’s absence. Sxc. 4. No post or department delegates shall be seated at the national convention unless the respective posts or departments which they represent shall be fully paid up in all their accounts with the national head- quarters, and their accounts duly audited and membership certified 30 days prior to the national convention. Src. 5. Two hundred of the voting delegates registered at the national convention shall constitute a quorum. Sxc. 6. This article shall not become effec- tive as amendatory of the original constitu- tion prior to the adjournment of the na- tional convention at which it is adopted. Pending such adjournment, article V of the original constitution shall have full force and effect. ARTICLE VI. NATIONAL OFFICERS SEcTION 1. The national convention shall elect a national commander, six regional vice commanders. and one vice commander at large, who shall be a woman, finance officer, provost marshal, judge advocate, surgeon general, and a national chaplain. No elected commander or vice commander shall succced himself in office. Sec. 2, All the elective national officers shall be members of the national executive com- mittee, but the national commander shall vote only in case of a tie. Sec. 3. The national commander, with the consent and approval of the national execu- tive committee, shall appoint a service direc- tor, a legislative director, a public-relations director, an inspector general, a national his- torlan, a membership director, and an exec- utive director. Sec. 4. The national commander shall have power to suspend any appointed officer for cause, and appoint an acting officer to per- form his duties until the next meeting of the national executive committee. The power of removal from office of any officer for cause is vested in the executive committee. Sec. 5. A candidate for public office shall resign his national elective office. National Officers elected at a national convention shall be installed in office at the same session at which elected. An appointed officer shall not receive salary during the period he is sus- pended from the performance of his duties. Src. 6. In the event of the death, resigna- tion, or disability of the national commander, one of the incumbent vice commanders shall be chosen as his successor by the executive committee, a meeting of which shall be called by the executive director, to convene within 80 days after such death, resignation, or disability. In case a meeting of the execu- tive committee is not convened within 30 days, a meeting date shall be set by the vice chairman of the executive committee to con- vene within an additional 15 days. ARTICLE VII. NATIONAL EXECUTIVE COMMITTEE Section 1. The administrative power be- tween national conventions shall be vested in the national executive committee, which shall be composed of the national com- mander, the retiring past national com- mander, the seven vice commanders, all other national elective officers, and one national executive committeeman from each State and Territory, to be elected by the respec- tive departments in annual convention. An alternate shall be elected by each depart- ment to serve in the absence or disability of the department committeeman. Each of the above members shall be entitled to one vote, and in case of his absence or disability to participate in the proceedings of the com- mittee, the duly elected alternate may cast his vote. SEc, 2. Each national executive commit- teeman shall take office upon the adjourn- ment of the department convention at which he is elected, and serve until his suc- cessor is duly elected and qualified. Sxc. 8. Members of the national executive committee shall be delegates to the national convention, each entitled to one vote. ARTICLE VIII. NATIONAL ADMINISTRATIVE COM- MITTEE SECTION 1. At its first meeting the national executive committee shall elect from its Membership, seven executive committeemen to serve on an interim committee to be known as the national administrative com- mittee, of which the national commander shall be chairman ex officio. The members of this committee, by their assent to serve, obligate themselves to attend substantially all of the meetings of the committee and participate actively in its work. Seven alter- nates shall also be elected and in the event of the inability of one of the delegates to at- tend, his alternate shall do so, Five mem- bers present shall constitute a quorum. Sec, 2. The national administrative com- mittee shall carry out to the best of its abil- ity all the powers and functions delegated to it by the national executive committee and assume the general responsibility of the ex- ecutive committee to pronounce AMVET pol- icy on questions of current interest and in cases of emerzency arising between meet- ings of the national executive committee. SEc. 3. No powers specially delegated to the executive committee by this constitution or the by-laws shall be assumed by the na- tional administrative committee without the specific delegation thereof by the executive committee. A stated meeting of the national administrative committee shall be held at least once in every 60 days, and the office of any member of this committee who shall be absent from three successive meetings there- of, may be declared vacant and a successor be elected by the executive committee from its membership. ARTICLE IX. DEPARTMENTAL ORGANIZATION Section 1. Each State or Territorial area of the United States shall constitute a depart- ment which shall be organized in a manner similar to the national organization. New departments shall be chartered by the na- tional commander upon the approval of the national executive committee. Each depart- ment shall conduct its own convention, to be held not less than 30 nor more than 90 days before the annuul national convention, at which time it shall elect a department execu- tive committee, and delegates to the national convention and the nations: executive com- mittee. Sec. 2. It shall be the duty of each depart- ment to aid in the organization of local posts, and to carry out the plans and policies dele- gated to it by the national headquarters in adherence to the provisions of this constitu- tion. ARTICLE X, POST ORGANIZATION Secrion 1. Local posts may be formed by 10 eligible individuals by making applica- tion to their department, and if there be no organized department, by making application directly to the national headquarters. If the department approves, the application shall be forwarded to the national headquar- ters and a charter shall be issued. Src. 2. Posts shall be governed locally by their own officers chosen according to their own constitution and bylaws. They shall be subject and subordinate, however, to the jurisdiction of the national and department headquarters; and any provision of a depart~ A1023 ment or post constitution found to be in con- flict or contrary to the provisions of this con- stitution, shall be null and void. ARTICLE XI. FINANCES Sxrcrion 1. All national finances of AMVETS shall be under the control of the national executive committee, which shall delegate sufficient general and specific au- thority to the finance committee to carry out the usual duties of the office. The finance committee shall make periodic re- ports at all stated meetings of the national executive committee, and an annual report at the national convention. Revenue shall be derived from annual dues and other sources approved by the executive commit- tee. The regulation of annual dues shall be set out in the bylaws. Sec. 2. An annual budget shall be sub- mitted for approval at the first annual meet- ing of the executive committee. It shall be prepared by the retiring finance committee, who shall have received proposed budgets from the retiring heads of national depart- ments, and snall have consolidated the same. In the event that the budget is not approved, a finance committee shall be appointed, con- sisting of three members of the executive committce, by the new national commander, to prepare such budget for presentation to the executive committee. Sec. 8 The finunce committee shall con- sist of three members, one of whom shall be appointed by the new national commander, one by the retiring national commander, and the finance officer. The finance officer shall be the chairman of the committee. ARTICLE XII. DISCIPLINE Srcrron 1. Disciplinary rules relative to lo- cal posts shall be prescribed by the depart- ments. Sec. 2. The national executive committee, after notice and hearing before a subcom- mittee, may cancel, suspend, or revoKe the charter of any department for good and suffi- cient cause to it appearing. Procedure for such action shall be prescribed by the na- tional Judge advocate. In the event of the cancellation, suspension, or revocation of any charter of any department, the suspended body shall have the right of appeal to the next nationa] convention. Sec. 3. In the event of such action, the National executive committee is empowered to take over the operation of the department whose charter is suspended or revoked until the next department convention, but is bound by the constitution and bylaws there- of. At the next department convention, new department officers must be selected to carry on the work of the department. ARTICLE XIII. POST TRANSFERS SEcTION 1. Any member in good standing may change his post or department, and may join a new post without repaying the current annual dues. ARTICLE XIV. AUXILIARIES SEcTION 1. AMVETS recognizes a subsidiary organization known as the AMVETS auxiliary. Sec. 2. Membership in the auxiliary is limited to mothers, wives, daughters, and sisters of regular members of Amvets; and mothers, widows, daughters, and sisters of deceased veterans who would have been eli- gible to join AMVETS. Sxc. 8. The auxiliary shall be governed in each department by such rules and regula- tions as may be prescribed by the said de- partment and approved by the national ex- ecutive committee. Src. 4. (a) Every auxiliary shall be affili- ated with an AMVETS post, and carry the cor- responding number of that post. (b) No auxiliary shall be formed when no post exists, (c) Wherever auxiliaries presently exist where there are no posts they shall proceed to organize posts as one of their present objectives.
A1024 (d) At the time of the next convention, if auxiliaries still exist where there are no posts, they shall be established as branches of an auxiliary to a post, and entitled to representation through that auxiliary so there will be no more delegates from the de- partment than the number of AMVETS posts which have accredited auxiliaries. ARTICLE XV. SAD SACKS Sxcrion 1. AMVETS recognizes a subsidiary tion known as AMVETS Sad Sacks of American Veterans of World War II. Sxc. 2. Membership in Sad Sacks shall be limited to members in good standing of AMVETS. Sxc 3. Sad Sacks shall be governed by a constitution and by-laws approved by the national executive committee. ARTICLE XVI. AMENDMENTS Secrion 1. This constitution may be amended by a two-thirds vote of the total authorized delegates present at any AMVET national convention. Proposed amendments for action of a national convention must be submitted by a department convention, department executive committee, or the na- tional executive committee to the national commander, and by him to the several de- partments and members of the national executive committee, by mail, at least 80 days prior to the convening of the next national convention. This constitution may, however, be amended at any national convention with- out notice, by unanimous vote. By-Laws or AMVETS (AMERICAN VETERANS OF Woritp War IT) ARTICLE I. NATIONAL EXECUTIVE COMMITTEE SEcTION 1. In case of death, resignation, or . Pemoval by his respective department of any national executive committeeman, or alter- nate. the successor shall be selected as such department shall determine and shall serve for the remainder of such unexpired term. Sxc. 2, Stated meetings of the national executive committee shall be held (1) within 24 hours after the adjournment of the na- tional convention (2) once each quarter thereafter, (3) immediately preceding the next national convention. Special meetings may be held upon reasonable notice at the cali of the national commander. The na- tional commander shall call a meeting of the national executive committee upon the writ- ten request of the national executive com- mitteemen from at least 60 percent of the Organized departments. Sec. 3. A majority of the members shall constitute a quorum of the national execu- tive committee. Src. 4. The national commander shal! name such committees as he shall deem advisable, subject to ratification by the national execu- tive committee at its next meeting succeed- ing the appointment, or by the national administrative committee, if such powers are delegated to it by the national executive committee. Such committees shall serve during the pleasure of the administration appointing them, and shall terminate upon the inauguration of a new national com- mander. No provision of this article shall be construed to prejudice the reappointment of the national executive committee. Src.5. The national finance committee shall be charged with the preparation of the annual budget, and the handling of funds, subject to the approval of the national ex- ecutive committee. Src.6. The national executive committee shall approve the appointment and employ- ment of proper officers and employees for the administration of the affairs of AMVETS and prescribe their duties and compensation. Src.7. Any national officer may receive Compensation for his authorized activities on behalf of the organisation, such compen- sation to be fixed in amount by the vote of the national executive committee, Sxc.8. All questions affecting the eligi- bility for office and conduct of national officers shall be referred to and determined by the national executive committee. All questions affecting the eligibility for office and conduct of the national executive com- mitteemen, department officers, or members of department executive committees may be referred to and determined by the executive committee of the department involved. ARTICLE 1, DUTIES OF OFFICERS Secriow 1. National commander: The na- tional commander shall be the executive head of AMVETS, with full power to enforce the provisions of the national constitution, the national bylaws, and the will of the - national convention. He shall be the chair- man of the national convention and the national executive committee. He shall ap- point all necessary committees, subject to the ratification of the national executive committee, and shall perform such other duties as are usually incident to the office. Src. 2. National vice commanders: The national vice commanders shall act as rep- resentatives of the national commander in all matters referred to them by him, and shall upon his request preside over the meetings of the national convention or national execu- tive committee, and perform such other duties as are usually incident to the office. Src.3. Nationa! executive director: The na- tional executive director shall be charged with the administration of the policies and mandates of the national convention, the national executive committee, and the na- tional commander. He shall supervise the activities of all divisions at national head- quarters, issue such directives as may be necessary to departments and poste, act for the national commander during his absence from national headquarters, and perform such other duties as are usually incident to the office. He shall serve at the pleasure of the national commander and the national executive committee. Src. 4. The national finance officer: The national finance officer shall be custodian of the funds of the national organization. All checks disbursing the funds of the national organization shall be signed by two or more persons as designated by the national execu- tive committee, and the finance officer shall make reports of the condition of the national treasury when called for by the national com- mander or national executive committee. The national finance officer shall furnish a surety bond as hereinafter prescribed. He shall perform such other duties as are usually incident to the office. Src. 5. National judge advocate: The na- tional Judge advocate shall advise the na- tional officers and the national executive committee and national administrative com- mittee on all legal matters, including the construction and interpretation of the na- tiona' constitution and by-laws, and shall perform such other duties as are usually in- cident to the office. Src. 6. National service director: The na- tional] service director shall be the service and welfare officer of the natianal organization. He shall be responsible for the proper han- dling of claims of veterans, and their de- pendents or survivors, before the Veterans’ Administration; employment problems; pros- ecution of rights under the Servicemen’s Re- trained eignment to the various regional offices of the Veterans’ Administration. APPENDIX TO THE CONGRESSIONAL RECORD Src. 7. Nattonal legislative director: The national legislative director shall be re- sponsible for preparing the national legisla- tive program in accordance with the man- dates of the national convention, the national executive committee, national administrative committee, and the national legislative com- mittee. It is his further responsibility to Graft the necessary bills in connection there- with and to cause such bills to be introduced in Congress and actively urge the considera- tion of legislation thus proposed. He shall at all times be fully informed when hearings are to be held on bilis in which AMVETS is {Interested and be prepared to present teati- mony before the committee or committees handling such bills. It shall be his duty to maintain close Haison with members of the House and Senate in order to secure the enactment of the AMVET program. He will make every effort to cooperate fully with other groups favoring proposed legislation which is supported by AMVETS, and it shall . be his responsibility to maintain adequate legislative information when requested by individual members, posts, or departments of AMVETS. He shail serve at the pleasure of the national commander and the national executive committee. Src. 8. National public relations director: The national public relations director, un- der the direction of the national commander, shall be responsible for the planning, for- mulation and development of a public-rela- tions program, including publicity, organi- gational publications, etc. He shall be re- sponsible for efficient and proper liaison with all public-relations media, press, radio, news- reels, periodicals, and all forms of advertising. He will be kept currently informed by the other nationa! officers of all matters affecting his department and keep the public con- etantly advised of declared and established AMVET policy and activities. He shall serve at the pleasure of the national commander and the national executive committee. Src. 9. National chaplain: The national chaplain shall perform such divine and non- sectarian services as may be necessary, ad- hering to the appropriate ceremonial rituals, and discharge the other duties Incident to the office. Src. 10. National historian: The national historian shall compile from year to year all records of historical value and interest for the national headquarters of the AMVETS. He shall also assist department and post his- torians so as to coordinate and unify the work of these officials, and perform such other duties as the national commander and the national executive committee shall prescribe. He shall serve at the pleasure of the na- tional commander and the national executive committee. Src. 11. National provost marshal: The na- tional provost marshal shell maintain order at all meetings and conventions. He shall perform such other duties as may be re- quested by the national commander. Src. 12. The surgeon general shall perform such specia] duties as are assigned by the national commander as well as the usual duties incident to the office. ARTICLE IIt. CHARTERS | Secriow 1. A department executive com- mittee may suspend, cancel, or revoke a post charter and such action shall be final and conclusive, unless an appeal is taken to the natianal executive committee within 80 days from the date of sald suspension, cancella- tion, or revocation. Action taken by the national executive committee upon appeal shall be binding, pending appeal to the next national convention. A post charter which has been thus sus- pended may be reinstated by action of the it executive committee if the post Gepartmen: ; Dome lteelt, ot the cleus within 60 day ‘ te suspension. the delinquency is not Cleared to the satisfacticn of the depart-
APPENDIX TO THE CONGRESSIONAL RECORD ment executive committee within 60 days, appropriate action shall be taken by that committee to effect revocation or cancella- tion of the charter. Src, 2. Any post failing to meet the obli- gations tmposed upon it by the constitution and bylaws, or ceasing to function for 6 months as a post of the AMVETS or volun- tarily ceasing to function as a post, or merg- ing with one or more other posts, or refus- ing. or failing to pay the department and national per capita dues within 60 days after collection by the post shall, upon order of the department executive committee, surrender its charter. 8rc. 8. Upon revocation, cancellation, or suspension of the charter of a post in any department of AMVETS, said post shall im- mediately cease operation, and upon revo- cation or cancellation, shall turn over its charter and azgsets to its department com- mander or department executive committee. The department executive committee is au- thorized, empowered, and directed by and through its duly authorized agent to take possession, custody, and contro! of all rec- ords, property, and assets of said post. So much of the said assets as are required for the purpose shall be applied to any indebted- ness of the said post: Provided, however, That nothing herein contained shall be con- strued as requiring any department to take over or to assume any financial responsi- bility of such post. Said department execu- tive committee may provide for the transfer of the members in said post to other posts of their choice, subject to the approval of such other posts. Src. 4. The national executive committee shall provide a uniform code of procedure to be followed in the revocation, cancellation, or suspension of post cherters, and a method of appeal to the national executive com- mittee. ARTICLE IV. DISCIPLINE OF POSTS AND POST MEMBERS Secrion 1. Each post of the AMVETS shall be the judge of its own membership, subject to the provisions of the constitutions and by- laws of the national and department organi- gations. Buc. 2, Members may be suspended or ex- pelled by a post, upon a proper showing of cause. Written charges shall be based upon disloyalty, neglect of duty, dishonesty, and conduct unbecoming a member of AMVETS. Sec. 3. Any member who has been suspended or expelled has the right of appeal to his department executive committee, ac- cording to the provisions in the by laws of such department. The decision of the com- mittee shall be final with the right of appeal to the department convention. Szc. 4. A member whose dues for the fiscal] year have not been paid by January 1 shall be classed as delinquent. If his dues are paid on or before April 1, he shall be auto- matically reinstated. If he is still delinquent after April 1 his membership in AMVETS shall be forfeited. ARTICLE V. MEMBERSHIP Sxcrion 1. Membership in AMVETS consti- tutes membership in the national organiza- tton of AMVETS through post affiliation. Hereafter all AMVETS shall, prior to their acceptance as members, pledge allegiance to the United States of America and !ts Consti- tution, and certify that they have read, or have had read to them, the AMVETS declara- tion of principles, and that they accept and subscribe to the same, and they shall not ad- vocate or belong to any group or organiza- tion advocating the overthrow of the United States Government by foree. ARTICLE VI. MONEYS AND COLLECTIONS Szction 1. All national, department, and post officials handling AMVETS funds, shall XCIII—App.—65 be properly bonded with a good and solvent bonding and surety company, acceptable to the United States Treasury, as surety to cover the average amount of AMVETS funds han- dled by such individuals in a single year. In case of delinquencies in the payment of amounts due department or national head- quarters, action shall be taken at once by the proper officials to bring about an imme- diate and complete settlement. The bonds provided by national officials shall be ap- proved by the national executive committee, and those provided by departmen. and post officials shall be approved by the department executive committee. Src. 2. No contracts involving expenditure in excess of $1,000 of national AMVETS funds shall be negotiated without inviting a rea- sonable number of competitive written bids, and where the required products are of equal quality the contract shall be awarded to the lowest bidder. 8cc. 3. Any contract for solicitation.of do- nations where the amount involved is in excess of $500 shall be subject to approval by the department executive committee and na- tional executive committee or national ad- ministrative committee. Src. 4. All posts and department accounts shall be kept in accordance with a uniform accounting system established by national headquarters. The accounting system forms are to be provided by national headquarters to the posts and departments at a nominal cost. ec. §. The minimum annual membership dues shall be 64, payable to the post, of which 2 shall be forwarded to the national head- quarters, $1 forwarded to the department headquarters, and the remainder retained by the post. University and college posts may be formed on the campus, with dues of $1.50 per year. payable to the post, of which 50 cents shall go to the national headquarters, 50 cents to the department headquarters, and the remainder retained by the post. The method of forwarding dues to national and department headquarters shall be pre- scribed by the national convention or the national executive committee. ARTICLE VII. DEFINITIONS S8cTION 1, The word “he” wherever it shall appear in either the constitution or by-laws of the AMVETS, shall be construed as refer- ting to both sexes. ARTICLE. VIII. RESTRICTED USE OF ORGANIZATION Section 1. AMVETS, or any component part thereof, shall not be used to promote the interest of any individual who is 4 candi- date for public office, or to promote otherwise, any individual. organization, political party, faction, or product. Any violation of this provision shall be sufficient cause for dis- ciplinary action against the offending post or department, ARTICLE IX, MEETINGS SECTION 1. All business meetings of this organization shall be conducted. under Robert's Rules of Order. ARTICLE X. NATIONAL FLOWER SECTION 1. The national flower shall be the four-leaf white clover, meaning “think of me.” ARTICLE XI. DIVISION OF INTERNATIONAL AFFAIRS SrcTIon 1, There is hereby created a Divi- sion of International Affairs of AMVETS. The division shall be composed of three di- rectors, one of whom shall be the executive director and the other two shall be associate directors. The directors shall be appointed by the national commander with the consent of the national executive committee. Sec. 2. The directors ahall serve at the pleasure of the national commander and the national executive committee. A1025 Src. 8. It shall be the duty o? the directors to be informed on matters of international affairs, perform research and investigation in such affairs, inform the national executive committee and the membership of the organ- ization of all matters found to affect the peace, and rnake recommendations thereon, and provide representation at any peace conference, subject to the approval of the national executive committee. Funds shall be provided upon approval of the executive committee for the operation of this division. ARTICLE XII. ACCOUNTING FOR MONEYS Srcrion 1. All moneys received by this organization shall be strictly and accurately accounted for, and a report shall be made available annually to all members, showing the sources of all such income and the ex- penditure thereof. All posts, department, and national accounts shall be kept in ac- cordance with a uniform accounting system es established by national headquarters. ARTICLE XIII, AMENDMENTS SECTION 1. These bylaws may be amended at any national convention by a majority vote of the total authorized representation thereat, provided that the proposed amend- ment shall have Feen submitted through the nationa] executive committee by mailing or delivering the same to it at least 80 days prior to the convening of the next national convention. The said bylaws may also be amended by a two-thirds majority vote of any national convention without prior notice. Src. 2. No proposed amendment shall be submitted through the national executive committee or considered by the national con- vention, as provided in section 1 of this article, unless said proposed amendment shall have been first submitted by a depart- ment convention. The Same Old Story EXTENSION OF REMARKS or HON. CLARE E. HOFFMAN OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, March 10, 1947 Mr. HOFFMAN. Mr. Speaker, the morning papers, March 8, 1947, display the signs pointing down the same old road to war, at the end of which lies death for a million or more American young men. Thirty years ago, some who grow rich when wars are fought, others who never fight wars, some so-called international- ists more interested in other people than in America, arguing that Kaiser Wil- helm, with the German military might behind him, would destroy civilization, send the world back to the so-called Dark Ages, got us into war. Your intelligence exceeds mine. Fig- ure out for yourself what of good that war did for the world, for us, for any nation. More recently, but before the Japs struck at Pear] Harbor on December 7, 1841, and after our Navy had, as we now know, been taking part in the fighting, similar arguments induced us to openly take part in World War II, in which President Roosevelt had already, without our knowledge, involved us.
A1026 Again, those who thought they saw a chance to become multimillionaires, those who would surrender a part of our sovereignty, establish a United States of the world and over it run up an interna- tional flag in place of the Stars and Stripes, told us first that, unless we went to the aid of England and the British Empire, we would be at the mercy of the German hordes which would destroy us. Churchill said, “Give us the tools and we will do the job,” and here the cry went up, “All aid to Britain short of war.” First we sent our dollars; then we sent munitions of war, and then, in spite of the promise of a President, who won his election on the promise that he would never send American men to fight on foreign soil, more than fifteen million women and men, young Americans, en- listed or were drafted into their country’s service. They were the deciding factor in that war. Hitler and his a:mies were destroyed. . What did we or any other nation gain? Instead of establishing the “four free- doms” throughout the world, millions of formerly free men and women are now slave laborers, either in Britain’s coal mines, in the industries of France, or within the borders of Russia. Nations have been destroyed. Nowhere, where our armies have fought and our men have died, are the people free to establish a government of their choice. Here at home, returning veterans are denied the right to work, to earn a liveli- hood for their wives and their children. They are unable to buy or to build the homes to which they are entitled. And the average American citizen ‘has less of freedom than in any peacetime since the Republic was born. The internationalists, the world’s fi- nancial overlords, the do-gooders, the “statesmen of the world”, some who think that is the way to peace, and those who never fight but all too often advo- cate fighting, have had their way and we have an organization known as United Nations. Those who are respon- sible for its existence admit its ineffec- tiveness. Let me repeat. The morning papers tell us the President is calling the rank- ing politicians to his office, where they will be told, as they already know, that there is civil war in China; that Great Britain is withdrawing from Greece; that the Balkans are boiling, with their peo- ple in revolt. . England, whose labor government, after we gave her billions, has seized private industries, destroyed free enter- prise, is on the verge of collapse. Great Britain no longer can successfully de- fend her territory. So comes the propaganda that the United States of America, with her mil- lions of veterans still in need, with her productive industries periodically tied up by labor unrest, with prices soaring so the average man finds it difficult to get the necessities of life, to save herself, must contribute millions—yes, billions— of dollars to feed and clothe and arm the people of other nations, And next may come—and do not be deceived—the demand we must again send millions of men abroad to fight on foreign soil. Shame on those who have so little con- fidence in the principles laid down in our Constitution, in the ability and the courage of our fighting men, in the pro- ductive genius of America, that they believe and act on the theory that this Nation of ours, which has been the deci- sive factor in two world wars; which, according to Churchill, who ought to know, at the end of this last war, was the strongest, the mightiest, the most mili- tarily powerful nation of any in all the world, is so weak that it cannot defend itself against Russian aggression or the ageression of any or all other nations. We, with British and Russian aid, over- ran Germany, impoverished the German people, destroyed the German military power. President Hoover, who ought to and does know, recently was quoted as saying that the Germans were the one people in all the world whe were willing to work for their own rehabilitation. We know now that Britain—yes, and our own lead- ers—having destroyed German military might, now seek to build it up as a bar- rier against Russian aggression, We strengthened and armed “tussia. We continue to this day to build her up in her homeland, but we are now told we must fight her on the Greek and Turkish borders. It is difficult to understand or to follow our international statesmen. The decision of whether again we fight another world war to save the British Empire—not ourselves, but the British Empire—rests with the American people. They should know the facts, what is in the cards, before the decision is made. Federal Aid to Education EXTENSION OF REMARKS HON. ROBERT A. TAFT OF OHIO IN THE SENATE OF THE UNITED STATES Monday, March 17 (legislative day of Wednesday, February 19), 1947 Mr. TAFT. Mr. President, I ask unan- imous consent to have printed in the Ap- pendix of the Recorp an address on the subject, The Sound Basis for Federal Aid to Education, delivered by me to the American Association of School Adminis- trators at Atlantic City, March 6, 1947. There being no objection, the address was ordered to be printed in the Rrcorp, as follows: It is unnecessary in such a gathering as this to dwell on the importance of education to the United States and to the Federal Gov- ernment. It lies at the very basis of all in- telligent self-government. This Nation was founded “to secure the blessings of liberty to ourselves and our posterity.” Liberty and equal justice under law must be continu- ously secured if we are to carry out the pur- APPENDIX TO THE CONGRESSIONAL RECORD poses of the formation of this Republic; but neither liberty nor justice can be secured without a widely diffused education. We cannot preserve the Republic at all unless the people are taught to read and to think so that they may understand its basic prin- ciples and the application of such principles to current problems, No man can be free if he does not understand the opportunities which lie before him. No man can have equality of opportunity if he has not the knowledge to understand how to use the rights which are conferred upon him. Furthermore, education is essential to economic welfare. The principal concern of the people today is apparently to increase the standard of living and the material wel- fare of our citizens. I believe this goal is being pursued too much to the exclusion of other values, but certainly it dominates cur national thinking. Any general economic welfare is impossible without education. Un- less men understand to some extent the principles of increased productivity, prosper- ity can be quickly destroyed. Unless men know what other men have achieved and are educated to a desire for the same improve- ments, history shows that they remain in perpetual poverty. I have always felt that the misery which depresses the mass of peo- ple in India and in China, for instance, is due to the lack of education and understanding of the higher standards which are possible. Furthermore, education is the only defense of liberty against totalitarianism. It may be that intelligent people will be occasionally misled to vest complete power in the state or in a single individual, but without educa- tion dictatorships inevitably arise. And by the same token education may be a danger- ous tool in the hands of an all-powerful state. We have seen how Hitler used edu- cation to change the whole philosophy of German youth until they came to believe in the doctrine of a superior race and totali- tarian government. Such a government, in the end, cculd only have maintained itself by suppressing freedom of education. Broadly speaking, this country has done a good job in education. It finally became fully committed to the principle of uni- versa] free schooling for every child in the United States. Its system was built up on the basis of the development and control of education by each community, so that the parents in each city, town, and county could “determine the manner in which their chil- Gren should be taught. Naturally, the char- acter ot education varied throughout the country and was of many different qualities and types. Experiments in method have been freely made and have failed or suc- ceeded after a fair trail. Men differently taught have developed novel and clashing theories which have finally met in the forum of national debate to be passed upon by the entire people. This very variety has promoted a freedom of thought, and conse- quently a material progress, greater than that of any other country in the world. This same localization of education has made it in some respects less effective. Some districts have done their job poorly. That is an inevitable incident to local administra- tion, but we may well remember that when a Federal system develops fatlts, and it always does, those faults extend throughout the entire country on a universal scale. The adoption of a Federal system looks perfect on paper. but in practice it soon develops the inefficiencies of every huge bureaucracy, besides subjecting 25,000,000 children to the particular ideology of a small clique in con- trol in Washington. The faults of local administration in some districts cannot al] be cured, because they are due to the very freedom to make mistakes which is essential to any freedom at all.
APPENDIX TO THE CONGRESSIONAL RECORD But in many districts, the failure in educa- tion is due to causes which can well be remedied, and in particular if it is due to the poverty of the district, or of the State in which it ltes, While money is not the only requirement of a good school system, as s0 many of cur writers on public-school edu- cation seem to think, it 1s certainly an essen- tial one. There is a wide variation in the wealth of different States and districts. The income per capita ranges from 8484 in Mis- sissippi to $1,452 in Connecticut for the year 1943. The differences between districts in the same State are even wider. The result is that children in some dis- tricts receive a poor education or no educa- tion at all. This has been clearly shown up by the illiteracy found in the selective serv- ice examinations, Rejection rates for edu- cational deficiency averaged nearly 8 percent throughout the Nation as a whole with a much heavier rate in the poorer States. Even in the wealthier States there was a small percentage of rejections for this cause, possibly because of persons who had come from other States. In any event, we have failed to do a complete job of giving Ameri- can children equal opportunity due, in part, to causes which I think can be corrected. Without question, the primary oblication to educate children under our constitutional system falls on the States and local districts. But I believe very strongly that the Federal Government has a proper function in the field. We are a great and wealthy Nation. I believe the people of this country feel that our productive ability is so great that we can prevent hardship and poverty and illiteracy in the United States. Perhaps no nation has ever done so, but the American people think it is possible for us to do it. The Federal Government is authorized to levy taxes to provide for the general welfare of the United States, and under that constitutional grant has the right to dispense money to the States and local districts for purposes not within the constitutional power of the United States to control or regulate. Not only are some of the States poor, but States in general have a limited power of taxation. They cannot raise their taxes much above those of other States or their citizens and industries would drift into those other States. The Federal Government’s powers of taxation are not unlimited, but we are raising some £35,000,000,000 today, compared to $10,000,000,000 for the States and local districts. My own belief is that the Federal Govern- ment should assist those States desiring to put a floor under essential services in relief, in medical care, in housing, and in educa- tion. Apart from the general humanitarian interest in achieving this result, equality of opportunity lies at the basis of this Republic. No child can begin to have equality of op- portunity unless he has medical care in his youth, adequate food, decent surroundings, and, above all, effective schooling. It is the concern of the entire Nation to see that the principles of the Decleration of Independence and of the Constitution are translated into reality. I believe, therefore, that the Federal Gov- ernment should undertake a system of ex- tending financial aid to the States with the objective of enabling the States to provide 8 basic minimum education to every child, to the end that equal opportunity shall not be interfered with by the financia] condi- tion of the State or district of the child's residence. certain principles, however, seem to me clear. The administration of education and con- trol of the school system must be completely in the hands of the State and local admin- istrators. I believe that every Federal aid proposal which has been made accepts this principle in theory. It is admitted that local self-government in education is essential to the preservation of liberty in a country the size of the United States. The matter, however, is not quite so simple as declaring a principle. Our experience has shown that Federal aid to local activities, even though disowning an intention to reg- ulate and control, may easily bring about such a control. If Federal aid depends upon the discretion of some Federal officer who has the power to withhold funds, human nature is such that he is apparently under @ constant temptation to tell the recipients of the money how they must run their affairs. The threat is there, sometimes expressed and sometimes implied, that if the State Bureau does not comply with Federal suggestions, the money will not be forthcoming. We have seen an example of this in the control attempted to be exercised by the Children's Bureau during the war. Therefore, I be- Neve that the standards should be Clearly established in the law, and that the Federal Government should interest itself in only one question, whether the statutory stand- ard is complied with and the money used only for the purposes of the act. If we can reduce the Federal interference to a matter of audit, we may hope to maintain loca] in- dependence. Fortunately, the tradition of the Federal Office of Education has been one of noninterference, and the office up to this time has preferred to work through the State departments of education. I have pointed out that Federal adminis- trative officers ure inclined to extend their jurisdiction and interference, but we must also restrain the inclination of Congress to do the same. In any appropriation bill, racsed long after a Federal -aid system isestablished, it is always possible for someone to offer an amendment rroviding that the funds appro- priated shall not be used for some purpose which happens to be unpopular in Congress. Thus an amendment may require that no money shall be used for education which teaches socialism, for instance. The purpore may be a very praiseworthy one, but the mo- ment Congress imposes that kind of a condi- tion, 1t may soon impose others and we are embarked on a course likely to lead to com- plete Federal control. Also, if the Federal funds become a very considerable percentage of the total sum be- ing used, it is almost impossible to prevent some Federal interference, even with every safeguard provided as in the bill we have introduced. I think States which accept Federal funds and come to rely on them are in danger of losing much of their independ- ence. A State which can get on without the Federal money had better exer« every effort to do so. I do not regret, therefore, that Ohio is in a pcsition where it can carry on without Federal assistance, and will have to do so under the formula in our Dill. The danger of Federal control of educa- tional policy appears clearly in the contro- versy now going on regarding private and parochial schools. The advocates of such schools insist that the Federal money be available to such schools regardless of the policy of any State government in refusing to recognize such schools as part of the public school system. On the other hand, the opponents of such schools wish us to declare that no Federal money shall be ex- pended for private or parochial schools, re- gardiess of what the policy of the State may be in dispensing its own funds. If we yielded to either of these arguments, we would clearly be changing the educational policy of the State. This bill is a State-sid bill, and the State should be authorized to use the Federal funds for the same educa- tional purposes for which it uses its own A1027 State funds. If the State recognizes pri- vate and parochial schools as part of its B8tate educational system, then the bill pro- vides that it may use Federal funds in the same proportion in which its State funds @re used for such schools. On the other hand, if the State educational policy is to operate only through public schools, Federal fmoney can only be used for that purpose. If we cannot maintain the principle of noninterference in State educational sys- tems, I would be opposed to the whole bill. The question has nothing to do with the highly controversial problem whether States should appropriate public funds for parochial schools, One may feel strongly either way on that subject, but it is a matter for each State and the people of each State to determine. The second principle which I believe must underlie any bill for Federal aid is that the Federal contribution shall be auxiliary and shall not become the principa] support of education. I have already pointed out that regardless of safeguards, too much reliance on Federal money would inevitably come to mean Federal control. But even more than that, the Federal Government's primary ob- ligations must take th> greater part of the money which can be raised even by Federel taxation. Three national responsibilities, interest on the public debt, support of the armed forces, and payment of veterans’ al- lowances, amount in the present budget to $23,600,000,000, three times the entire pre- war budget of the Federal Government. It is not true that the Federa] Government can levy all the taxes it may like to levy. The present tax burden seems to me a complete discouragement of the very eccnomic activity from which taxes come. The people today on the average are paying nearly one-third of their income in taxation, working 1 day in 8 for the Government. I believe such a tax system will soon discour ge both individual initiative and corporate expansion. The Federal contributions, therefore, to States for matters where States have the primary obligation, like welfare, health, housing, and education, must be in a limited amount. On the other hand, the State tax systems have been set up in most cases very largely with a view to raising money for education. They should be even more adapted to that purpose, and they should be looked to pri- marily for the neceasary increase in teachers’ salaries. I realize the difficulty which even the wealthier States have taday to raise the necessary money, but such States can do 50, and should. My own theory is that wage rates per hour have undergone a permanent increase which means ® permanent increase in costs. I doubt if the cost of living can at any time be reduced to much less than 1£0 percent of prewar. I believe we should try to adjust our whole economy to a %0-percent increase in the wage and price level. Since teachers were in most cases underpaid, even before the war, the increase in teachers’ salaries over prewar should probably be greater than 50 percent. I believe the States can and should give such an increase. It is true that it takes some time to adjust a State tax system to the higher level of values, to increase real-estate appraisals and the like, but certainly in- creased price and wage levels should be re- flected in time in a permanent corresponding increase in the State tax receipts. For the present many States have a surplus. Those which have no surplus might provide for 3 gradual increase over several years. But 1 feel strongly that the Federal Government with ite tremendous burden should not be called upon to solve the financial problems of States having more than the average per
A1028 capita income, fully able to give an adequate education.to their children. 8. 472 provides that, as a necessary con- dition of Federal aid, any State must provide for its primary and secondary educational system at least 2.2 percent of the income of its citizens. This is slightly higher than the national average. Furthermore, the allot- ment to any State is proportionately reduced if it does not levy at least 214 percent of the income of its citizens. When I speak of the income of its citizens, the concept is one of a State income similar to what we have coine to speak of as “national income,” namely, the gross income of all the individuals in the State as deter- mined by the Department of Commerce. I do not suppose this statistical measure is completely accurate, but it is now regarded as substantially so. The bill then provides that if 1.1 percent of the State income, which would be one- half the total State and local revenue set aside for primary and secondary education, is insufficient to provide 840 for each child from 5 to 17 years of age in the State, then the Federal Government will make up the difference so that one-half of the State rev- enue plus the Federal contribution will equal $40 for each such child. It is then required that the State see that _every school district in the State receive from Federal, State, and local revenues at least $40 per annum for eath pupil in aver- age daily attendance—excluding interest, debt service, and capital outlay. If there are separate colored schools, each colored school must r ceive such amount. You will note that there will remain to the State to be used in its discretion, one-half of its total school revenues, equal at least to 1.1 percent of the income of its people. Undoubtedly, some districts will get a larger proportion of this surplus fund than others, but it should be entirely possible for a State to provide from such funds a higher minimum base than 840 if it chooses to do #0. We con- sidered making a requirement of perhaps $60 per child, but we found that while there would be enough money in each State from State, local, and Federal funds to provide such a uniform standard, it would take mon2y now bsing spent for schools in the wealthier districts in the State to be dis- tributed to the others. Perhaps a State equalization system should do that, but we did not like to compel the reduction of the funds now being spent in any of the wealth- jer urban districts. In summary, therefore, the basis of 8S. 472 is that if a State after making more than the average effort cannot provide $40 per child from half its revenues, the Federal Government will assist the State to see that every child receives at least a $40 education. I realize that this is too low a permanent standard, but it is very much higher than is now being spent for many children in the poorer districts of the United States. It will take some years even to reach the $40 mini- mum standard, and then we can consider whether to shoot at a higher goal. There is reason to hope that the disparity in income between the different States may gradually decrease. The very education in the poorer States which we are now pro- moting ought to increase the progress, pros- perity, and income of those States. As they approach the national average, the necessity for aid from the Federal Government will become less, This might well enable us, without increasing the appropriation, to Taise the standard. I quite realize that this bill does not hold out any immediate promise of relief to the teachers in many States. Where the aid does go, probably 80 percent of it will go for increases in teachers’ salaries where those salaries are now the lowest. There are some bills providing a general contribution by the Federal Government to all teachers’ salaries and proposing yery large appropriations for Federal assistance to education. I do not believe that Congress under the present budget condition could possibly adopt any such bills, In fact, even with 8. 472 we may have to postpone its first effective year until the Appropriations Committee certi- fies that the program can be begun within the over-all limitation set by the provisions of the La Follette-Monroney bill. The con- cern of all should be first to see that all American children have opportunity. That is the proper concern also of the Federal Government, The principal danger to the present bill rests in the differences between the advo- eates of Federal education. I feel very strongly that if all of. the advocates would unite behind S. 472 it could be passed at this session of Congress. It is based on sound principles. It recognizes the obliga- tion of the National Government to see that euch child has an adequate education and recognizes its further obligation. It recog- nizes and avoids the dangers of Federal con- trol and leaves to the States the responsi- bility and the power to work out their own salvation. It would be a tremendous step forward in assuring to America the means of striving forward constantly toward the ultimate ideal of complete equality and com- plete liberty. . Jow the Communists Estimate Their Strength REMARKS HON. FRANCES P. BOLTON a IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mrs. BOLTON. Mr. Speaker, at this time when we are endeavoring to adjust ourselves to the President’s new foreign policy and are hearing a good deal about what communism is, I want to insert in the Recorp a list of Communist strength according to the Communists’ own esti- mate at a London conference. Ac- cording to the chart, “All parties in this list base themselves on the teachings of Marx, Engels, Lenin, and Stalin.” Let me call your attention to the care- fulness of definition. It is not a count of “fellow travelers,” but of actual avowed and accepted party members. If you examine the list you will find it interesting to note that certain countries we understand to be under rather dom- inating Communist influence have very few accredited members of the party, some none at all. HOW THE COMMUNISTS ESTIMATE THEIR STRENGTH At a recent Communist conference in Lon- don, @ chart showing the advance of com- munism was displayed, giving the Com- munists’ own estimate of their strength. ‘The total world membership claimed was 18,592,300. According to the chart, “‘All par- ties in this list base themselves on the teach- ings of Marx, Engels, Lenin, and Stalin.” This is the listing that appeared on the APPENDIX TO THE CONGRESSIONAL RECORD Country Party Members | M.P.'s --[-2---dO......2.- 0 7 Labor Pro- 23, 000 |. .4..--- gressives, Communist... £0, 000 20 Democrat- 10, 000 2 Socialist, Vanguardia 20, 000 6 Populair, Popular £o0- 152, 000 12 elalist. Communist... 2, £00 |...2.2-5 Popular £0- £00 1 clalist. Martinique....... Cc ommunist 7 ne - “2 Menico...........|-----d0 -... 2... 25,000 |......2. Nicaragua.......- Partido fo- B00 |...enane elalista Tanama.........- Partido — ce) P00 | -.-sence Pueblo. Paraguay Communist... TUL... -do. Puerto R. do, United States -do. Uruguay . ...... A Fanto Domingo... “Poonlar Fo: | 2, 000 J.ne-naae cialist. Venezuela. ....... Communist... 2 Lebanon. Malaya....- Palestine - Fhilippines Siam... Syria... -.--..22.-| se. Australia .......- Communist... 28, 0100 1 New Zealand. ....|-..-- ( s 2,000 |e wene. . USSR. Albani Austria 50, 000 Belatur 700, 000 2 Britain... neee 43, 000 2 Bulgaria.......-.- 450, 000 278 Czechoslovakia... Communist... 1, 000, C00 115 Denmark.......--}--.-- do. 60, 000 18 Finland. 2x, 000 41 Franee...-2..----}. 1, 300, G00 |e... 2.. ‘Germany — (So- Soc satist Uni- 1, 576, 300 |..-..-.. viet), ty. Germany (west- | Communist... 350, 000 |-..ennne rn). Greece. ~----0.. 400, 000 Hungar do 650, 000 Iceland... Unit ted Boclal- 1,000 Communist... ivland (North)... Norway.... Poland.....
APPENDIX TO THE CONGRESSIONAL RECORD Luther Burbank REMARKS HON. PHILIP J. PHILBIN OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES ' Monday, March 17, 1947 Mr. PHILBIN. Mr. Speaker, I desire to direct the attention of the House to the broadcast on the program “Caval- cade of America” tonight of the life and work of the famous scientist and horti- culturist, Luther Burbank, whose experi- ments and discoveries in the fleld of plant life have so greatly benefited hu- manity. The great American actor, Li- onel Barrymore, long an admirer, will enact the role of Burbank in the radio dramatization of his career. According to Mrs. Esther B. Mac- donald, town clerk of Lancaster, Mass., which is situated in my congressional district, Luther Burbank was born in Lancaster, March 7, 1849, the son of Samuel] Walton Burbank and Olive Ross Burbank. He was the thirteenth child of his father. Olive Ross, of Shirley, Mass., was the third wife of Samuel Burbank, and Luther was the third of her five children. Samuel Burbank was a farmer and a maker of brick and pottery. From his mother, Luther apparently inherited his love of nature, and particularly of flowers. H2 attended the Pine Grove School, a typical New England district school not far from his home on Harvard Street in the northern part of his native town. When he was 15 years of age he entered Lancaster Academy, where he studied for four winters, all the while utilizing the excellent library which even at such an early date the progressive and education-minded people of Lancaster had provided to inculcate and encourage learning in the community. From his work on the farm, Luther early gained a practical knowledge of the life, charac- teristics, and growth of plants. Some time after his father’s death, he purchased a 17-acre farm in the nearby town of Lunenburg, where he took up the business of :narket gardening. It was here that this great genius first produced @ new plant creation—the Burbank potato. In 1875 he sold his farm and went to California, where his, three older brothers resided, taking with him the small capital from the sale of the farm and 10 of his newly created potatoes. His subsequent experiments and cre- ations covered a very wide range and effected revolutionary changes in plant life and methods of cultivation in or- chard, garden, fleld, and forest. He sought and discovered new ways of choosing and caring for seeds, preparing the soil, planting, disease and pest pre- vention. He created many new species of berries, fruits, vegetables, and flowers, amazing and unbelievable to botanists and horticulturists. He improved the size and quality of many species. He utilized grafting to promote startling changes in garden, orchard, and forest. I could not begin to enumerate his re- markable accomplishments here but they are epochal and of lasting value. Luther Burbank will always be remembered as @ great scientist and a great American. The house where Luther Burbank was born, a large New England-style brick house with a wooden ell, was razed by the Government when it took over this sec- tion of the town to extend Fort Dev- ens during World War II. Mr. Henry Ford had purchased the ell of the house some years before and removed it to Dearborn, Mich. Luther Burbank was born on the second floor in a smal) room of this ell. It is interesting to note that at least two of Burbank’s former schoolmates still reside in my district—the brothers, Fred W. and Luther Bateman, both prominent and highly respected citizens. Mr. Fred Bateman, who knew Burbank intimately and well, is a famous civil engineer of Massachusetts, who, while he iz now a nonagenarian, still continues to work at his profession and is one of the most able, engaging, and finest men I am honored to know. It {is most appropriate that on this evening’s occasion the American people who have received lasting benefits from the brilliant research and miraculous achievements of Luther Burkbank should pay tribute to his memory and render appreciation for his magnificent work in behalf of science and humanity. That he should have unquestionably de- rived so much of his skill and genius, frugal habits, willingness to perform hard work, and tenacious purpose from his rugged New England forebears and the people and environment of a historic and forward-looking American commu- nity in the Third Congressional District serves as a lasting inspiration to all those who are privileged to live amidst the eternal hills, fertile valleys, and beau- tiful countryside of old New England, where American liberty was nurtured and where its spirit still animates the minds and hearts of our people. I am greatly indebted to Mrs. Mac- donald and also Hon. Orra L. Stone, distinguished editor of the Clinton Daily Item, for their kindness in furnishing me with biographical data on Luther Burbank. Increase of Income-Tax Exemptions REMARKS HON. AIME J. FORAND OF RHODE ISLAND IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mr. FORAND. Mr. Speaker, I am to- day introducing a bill to provide for tax reduction through the medium of in- creasing exemptions on a per capita basis by $200—from $500 to $700. If we are going to have tax reduction I believe that this method is much fairer than the method proposed in the Knut- son bill, which provides for a 20-percent cut across-the-board for all who have in- comes not in excess of approximately $304,000 and for those with incomes above that figure, of 104% percent. Under my proposal every taxpayer, A1029 whether in the low- or high-income groups, would be treated alike, because he would have the same exemptions. So that all may have an opzortunity to compare both plans, I am inserting in the Recorp today a copy of my bill and burden tables which have been prepared for me by the Division of Tax Research of the Treasury Department. The tables are: First. Comparison of amounts and ef- fective rates of individual] income tax under the present law, under H. R. 1— the Knutson bill—and plans to increase per capita exemptions to $600 and to $700, for specified amounts. Second. Decrease in amounts and ef- fective rates of individual income tax under H. R. 1, and under plans to in- crease per capita exemptions to $600 and to $700, compared with the pres- ent law, and tax decrease as a percent- age of present tax liability and net in- come after tax for specified amounts of net income. Take the case of a married man with two dependents who has a net income before personal cxemption of $2.500. Under present law he pays $95 in taxes. Under the Knutson bill he would pay $76, which means he would have his taxes reduced by $19, or by only eight- tenths of 1 percent of his effective rate, while a married man with two depend- ents whose income is $10,000 and now pays $1,862 would, under the Knutson bill, pay $1,490, a saving of $372, or 3.7 percent of his effective rate. A married man with two dependents and with an income of $25,000 now pays $8,522, and under the Knutson proposal he would pay $6.818, a reduction of $1,704, or 6.8 percent. The married man with two dependents and with an income of $100,000 who now pays $62,301 would, under the Knutson plan, pay $49,841, a decrease of $12,460, or 12.5 percent. Looking at it from the viewpoint of spendable income the same married man with two dependents and whose income is $2,500 would, under the Knutson plan, have his spendable income increased by eight-tenths of 1 percent; the $5,000 tax- payer would have his spendable income increased by 2.7 percent; the $10,000 taxpayer would have his spendable in- come increased by 4.6 percent; the $25,- 000 taxpayer by 10.3 percent; the $100,- 000 taxpayer by 33.1 percent; the $250,- 000 man by 64 percent; and the $300,000 man by 71 percent. Under the provisions of my bill the raising of exemptions would provide for an increase in spendable income for the $2,500 man by 4 percent; for the $5,000 man by 38 percent; for the $10,000 man by 2.8 percent; for the $25,000 man by 2.7 percent; for the $75,C00 man by 1.9 percent; and for the $300,000 man by 1 percent, If tax relief is to be afforded at this time, I believe it should go where the relief is most needed. That is, in the low-income groups, where practically every penny saved on taxes will be used to purchase the necessities of life, and where the increase in the cost of living is causing the greatest hardship. Not only would this tax relief help the low-income groups to maintain their
A1030 standard of living, but these same dol- lars would be added to the purchasing power and thus help to maintain our national income at a high figure. Econ- omists advise us that the national in- .come is now running in excess of $166,- 000,000,000 a year, but many of these same economists have been predicting a@ recession—they do not like the term “depression”—within a year. Should a recession set in and reduce our national income by as much as $10,000,000,000, we are told that this would affect the Fed- eral revenue by approximately $3,000,- 000,000. If taxes are to be reduced, I think the cuts should be made so as to provide an increase in the purchasing power in the hope that this would pre- vent the predicted recession. The following table shows the sav- ings that would accrue to a married man with two children, based upon a specified income under, first, the Knut- son plan and, second, under the Forand plan: Knutson plan Net income Comparison of amounts of individual income tax under present law, H. R. 1,2 and plans to increase per capita exemptions to $700, for spectfied amounts of net income MARRIED PERSON *—TWO DEPENDENTS Nett Plans to Vat Income increase per before personal Prosont B,R.1°4 | capita ex- exemption emptions to $700 $05 $76 |...2...- eee 190 152 $38 8R0 304 228 589 471 422 798 638 631 1, 490 1, 634 2,911 3, 312 4,712 5, 510 6, 818 8, 073 19, 280 23, 564 33, 858 41, 707 49, 841 61, 640 V2, 380 189, 783 190, 000 231, 808 228, 27h 276, 233 4 341, 300 405, $08 622, 724 534, 675 622, 083 RAK, R50 728, 050 38, 158 1, 704, 850 | 1, 501, 550 1, 702, 658 62, 565,000 | 2, 275,050 | ° 2, 565, 000 63, 420,000 | 3, 048, 650 | 6 3, 420, 000 6 4, 275, 000) | 3,822,050 | ° 4, 275, 000 $6,000,000... .| © 5, 130, 000 | 74, 590, 000 | * 5, 130, 000 (Internal Revenue Cude, as amended by Revenue Act -O1945 - A bill introduced on Jan. 8, 1947, in the House of Representatives, 80th Cong., Ist sess. 2 Assumes only 1 spouse has income, 4 Assumes taxpayer is under 65 years of age. 5 Point at which 15-percent reduction of present law tentative tax takes effect under H. R. 1. 6 Taking into account maximum effective rate limita- tion of 85.5 percent. 7 Taking into account maximum effective rate limita- tion of 76.5 percent. Troasury Department, Division of Tax Research, Jan. 1947, APPENDIX TO THE CONGRESSIONAL RECORD A bill to amend the Internal Revenue Code 60 as to increase the amount of personal exemption for income-tax purposes with respect to the taxpayer and dependents Be it enacted, etc., That section 25 (b) (1) of the Internal Revenue Code, as amended, is amended to read as follows: “(I) Credits: There shall be allowed for the purposes of both the normal tax and the surtax the rollowing credits against net income: “(A) An exemption of @700 for the tax- payer; “(B) An exemption of $700 for the spouse of the taxpayer if— “(1) a joint return is made by the taxpayer and his spouse under section 51, in which case the aggregate exemption of the spouses under subparagraph (A) and this subpara- graph shall be $1,400, or “(il) a separate return is made by the tax- payer, and his spouse has no gross income for the calendar year in which the taxable year of the taxpayer begins and is not the dependent of another taxpayer; “(C) An exemption of $700 for each de- pendent whose gross income for the calendar year in which the taxable year of the tax- payer begins is less than $700, except that the exemption shall not be allowed in respect of a dependent who has made a joint return with his spouse under section 51 for the taxable year beginning in such calendar year.” Src. 2, This act shall take effect July 1, 1947. TaBLe I.—Comparison of amounts and effective rates of individual-income tax under present law, H.R. 1,? and plans to increase per capita exemptions to $600 and to $700, for specified amounts of net income BINGLE PERSON-—-NO DEPENDENTS Net income before personal oxemption Amounts of tax Plans to increase per capita exomptions to— Effective rates Plans to increase per Capita exemptions to— Present law} H. R.1° Present law H.R.1! $600 $700 $600 $700 Percent Percent Percent Percent $19 $15 |u| en ewe m wee eee 3.2 2.5 |e fee eee 87 4 $38 $10 7.1 5.8 4.8 2.4 95 7 7 57 9.5 7.6 7.6 6.7 133 106 114 95 1 8.9 95 7.9 100 152 17] 152 12.7 10.1 11.4 10.1 285 2248 266 247 14.3 4 13.3 12.4 380 304 361 342 14.2 12,2 14.4 13.7 485 488 44 443 16.2 12.9 15.5 14.8 604 555 673 652 17.3 13.9 16.8 16.3 922 737 897 872 18.4 14.7 17.8 17.4 J, 169 924 1,144 1,119 W5 15.6 19.1 18.7 1,720 1,376 1, 601 G84 21.5 17,2 21.1 20.8 2,347 1,878 2,314 2, 382 2.5 1.8 23.1 22.4 , 270 3,417 4, 226 4, 181 28.5 22,0 2.2 27.9 6, 645 5,316 6, 505 6, 545 33. 2 2a, fl 33.0 $2.7 9, 362 7,490 9, 306 9, 250 37.5 30.0 37.2 37.0 2h, 187 20, 110 , O89 26, 000 0.3 40.2 6.1 80.0 43, 477 34, 782 43, 400 43, 323 58.0) 46.4 57.9 57.8 , 541 50, 832 $63, 458 63, 375 63. 5 80.8 63.5 63.4 191, 772 183, 417 191, 685 191, 508 76.7 61.4 76.7 76.6 237, 500 190, 000 287, 414 237, 327 78.4 62.7 78.4 78.4 278, 222 226, 435 278, 135 278, 049 70.5 64.7 79.5 70.4 407, 897 342, 460 407, 810 407, 724 81.6 68, 5 $1.6 81.5 624, 022 535, 835 23, 83. 623, 849 83,2 71.4 83, 2 83. 2 840, 147 720, 21 SAO, 060 839, 974 84.0 72.9 84.0 $4.0 1, 704, 647 1, 502,710 704, 1, 704, 474 85,2 75.1 86.2 85.2 § 2, 565, 000 2, 276, 210 § 2, 665, 000 5 2, 565, 000 85.5 75.9 85.5 85.5 5 3, 420, 000 3, 049, 710 5 8, 420, 000 5 8, 420, 000 86.5 70, 2 84.5 85.5 § 4, 275, 000 38, 823, 210 5 4, 275, 000 5 4, 275, 000 85.5 76.6 85.5 85.5 § 5, 180, 000 © 4, 590, 000 4 6, 130, 000 § 6, 130, 000 85.5 76.5 85.5 85.5 1 Internal Revenue Code, as amended by Revenue Act of 1045. 1 A bill introduced on Jan. 3, 1947, in the House of Representatives, 80th Cong., Ist soss. ® Assumes taxpayer is under 65 ycars of age, ‘ Point at which 18-percent reduction of present law tentative tax takes effect under H. B. 1. * Taking into account matimum effective rate limitation of 85.5 percent. * Taking into account maximum effective rate limitation of 76.5 percent, Treasury Department, Division of Tax Research, Jan. 28, 1647.
APPENDIX TO THE CONGRESSIONAL RECORD A1031 TABLE II.—Decrease in amounts and effective rates of individual-income taz under H. R. 1! and under plans to increase per capita ez- emptions to $600 and to $700, compared with present law, and taz decrease as a percentage of present taz liability and net income after taz, for specified amounts of net income SINGLE PERSON—NO DEPENDENTS Decrease in amounts of tax compared | Pereentage-point decrease in eflective| Tay decrease as 6 percentare of Tan Ceercase as 9 percentage of with present law rates compared with present law present tax lability Net meome alter tar peeeine ne oe Plans to increase per Plans to increase per Plans to increase per Tluns to increase per capita exemptions to— capita exemptions to— cupite exemptions to— _ | Capita exere plies to— H.R! W.R.1? __ H.R. —}| H.R 1 ok __ $600 $700 £00 $700 £¢00 £700 aU) von Percent Percent Percent Percent Percent Percent Percent Lercent Percent sa fy 0.7 Be 3.2 100, 0 1H), 0 7 2.3 a3 19 os 4 2.4 4.8 ws 8 66,7 1h 26 iA 9 ty au 1.9 3k 20.0 40.0 21 21 4.2 Ww Bry 2.2 1.6 ae Ws 186 25 1& a6 1W us 25 134 26 10.0 20.0 24 14 20 1 ai 2.9 1.0 1Y 67 133 3.38 11 22 F a0 ah 1h BO 100 3.6 .W 1.8 32 7 14 4.3 RE a0 aA 17 3.6 wo 1 4.0 ea 4.2 6 1.3 3.7 A 1.0 27 a4 4.6 6 1.2 3.9 4 .f 21 42 44 Al 10 4.3 4 7 7 3.3 58 A a) 4.7 3 7 1.4 25 6.1 4 8 7 J .6 11 2.1 AO 4 8 6.7 3 6 4 1h 10.0 4 7 VA 12 i 6 1.2 aT) 4 7 10.1 al a a8 aA 20.2 3 7) & 604 11.6 a | 2 .2 4 a6 2 of 12, 709 12.7 | -2 1 J 34.8 .2 of 3h, Bh5 14,3 (8) P| (on al bh @ a 3 47, 5C0 15.7 (4) ol ) ol T2b dt ot fl, 7R7 148 (3) (*) @) 1 721 al oy 500,000. _ 65, 437 131 (5) (8) (4) (4) 710 al 2 $750,000. BK, 147 11.8 (3) q «@) () 70.0 | al $1,000,000... . 110, 937 Wd (3) Q ’ 69, 4 1 1 $2,000,000......--. --- 201, 937 w1 ‘. $3,000,000. . 288, 790 |__-. 6 $4,000,000 . 470, 200 |. La $5,000,000, . - 451,700 J... $6,000,000_._.2-22.2-.2- 640, 000 foe. 1A bill introduced on Jan. 3, 1947, in the House of Representatives, 80th Cong,, Ist sess, 2Internal Revenue Code, as amended by Revenue Act of 1945, 3 Assumes taapayer ik under 65 years of age. «Point at which J5-percent reduction in present law tentative tax takes effect under H.R. 1. Less than 0.05 percent, Treasury Department, Division of Tax Research, Jan. 28, 1947. TaBLe III.—Comparison of amounts and effective rates of individual-income tax under present law,' H. R. 1,, and plans to increase per capita ezemptions to $600 and to $700, for spectfied amounts of net income MARRIED PERSON NO DEPENDENTS Amounts of tax Effective rates : Plans to inerease per capita Plans to tnerease per Net income before personal exemption exemptions to— rapa exemptions to Present law H.R 1s ee Present Jaw) BRD fo oe, $700 $600 $700 Percent Percent . Percent Percent . 42 25 [eee eee $19 6.3 Al a8 13 4 v8 76 5.7 200 W.4 91 84 304 12.7 wW1 10.1 AOS 14.7 Ws 12.6 714 16.0 28 145 vse 17.4 9 15.4 1, 463 14,8 18,3 2, FG Wh 2 6 3, 884 2168 2b. 25.9 6, 192 25.6 a SLO &, 858 i, # 1) : 35,4 24, B21 . 6 wT u 40.0 42, 784 . 46,0 aH 87.0 62, 797 . O04 i, G2. 100, 994 i, G12 i. F 76. 237, 155 d 62.6 . 78.2 277, 444 T.4 4.6 . 79. 3 407,119 81.6 68. 4 . Sl.4 628, 244 RE. 2 71.4 . B.1 R31, 309 84.0 72.9 84.0 84.0 1, 708, 869 BH. 2 G51 85.2 BBL 62, B65, (O 85.5 75.9 85.5 85.5 6 8, 420, C0 6 3, 420, 000 85.5 76.2 85.5 KoA © 4, 275, 000 6 4,275, 000 85.5 76.5 85.5 855 © 5, 130, 000 6 5, 130, 000 85.5 76.5 85.5 85.5 4 Internal Rovenuo Code, as amended by Revenue Act of 1045, 3A bill introduced on Jan. 3, 1947, in the House of Representatives, 80th Cong., Ist sess. § Asaumes only 1 spouse has income. 4 Assumes taxpayer is under 65 years of age. 4 Point at which 15-percent reduction of present law tentative tax takes effect under H. R. 1. § Taking into account maximum effective rate limitation of 85.5 percent, 1 Taking into account maximum effective rate limitation of 76.5 percent, Treasury Department, Division of Tax Research, Jan. 28, 1047.
A1032 APPENDIX TO THE CONGRESSIONAL RECORD Tasix IV.—Decrease in amounts and effective rates of individual-income taz under H. R. 1‘ and under plans to increase per capita exe emptions to $600 and to $700, compared with present law, and taz decrease as a percentage of present tax liability and net income after taz, for specified amounts of net income MARRIED PERSON \—NO DEPENDENTS Decroase in amounts of tax compared |Percentage-point decrease in effective; Tax decrease as a percemtag’ of Tax decrease as 2 percentage of with present law rates compared with present law present tax Hability net income after tax Net Income belor Plans to increase per Plans to increase per Plans to Increase per Plans to increase per bers Li capita exemptions to— capita exemptions to— capita exemptions to— capita exemptions to— H.R.1¢ |_| ORR __| H.R.14 H.R.1¢ $600 $700 £600 $700 $600 $700 $600 $700 Percent Percent Percent Percent Percent Percent Percent Percent Percent $8 $38 $38 0.7 3.2 3.2 20.0 100.0 100.0 0.7 3.3 3.3 WwW 38 76 13 2.5 1 20.0 49.0 BO. 0 14 2.7 6.4 38 38 76 14 19 3.8 20.0 20.0 40.0 2.1 21 4.2 57 oS 76 2 18 3.0 20.0 13.3 2h. 7 2.6 17 3.4 - 7 38 76 a 13 2.6 20.0 10.0 20.0 2.0 16 2.9 $4,000_ weeeee- 114 42 Rd 3.0 11 21 20.0 71 14.2 3.5 1.2 2.5 SAK). eee eenn een n ee 160 42 4 4.2 8 17 20.0 6.2 10.5 3.8 10 2.0 $6,000... 22002. 200 49 99 By) 8 17 20.0 4.7 5 4.2 1.0 2.0 $8,000. . ......02-0---- als 7 4 3.0 7 14 20.0 3.6 7.2 4.0 a) 1.8 $10,000. . 2022-22-22 eee 437 6h Wi 4.4 7 13 20.0 3.0 59 4.6 8 1.7 $15, £09 2 1 5.4 oa) 11 20.0 2.0 4.0 7.4 7 1.5 $20,000. --2.......-... 1,278 101 202 a4 ar) 1.0 20.0 16 a2 9.4 7 15 $28,000. 0. ee 1,816 112 224 a3 a) a 20.0 1.2 26 1.4 7 14 $60,000... 2.222. -- 4, 59 17 2rd 1.0 3 “6 20.0 wb Ll 19.7 5 11 $75,000. as &, OLS 154 308 18 +2 4 20.0 aA 7 27.0 A 10 $100,000 12, 626 15 331 12.6 2 aa 20.0 a) Ab 34, 2 4 9% $250,000. 38, 268 173 346 15.3 at el 2.0 al 2 5, 2 a3 6 $303,306 $2.22 47, £00 173 AG w.7 1 al 0.0 al ol 72.1 on) oo $350,000. . Al, 741 1738 46 14.8 (%) al 18. 6 al a] 7 2 of $500,000. 002.00 eee. 65, $01 173 346 13,1 (9) ot 16.0 (5) ol 10,7 2 4 $750,000. 2.0222 2 wee Sb, 141 173 a46 4.1 (4) il 69.7 al 3 $1,000,000. a 110, 801 173 M46 1.2 69. 2 l 2 $2,000,000. | 201, 491 173 340 11.8 (8,3 ol ol $3,000,000. 280, 176 ase 11.3 if, . $4,000, 00K)_.. -- S870, 676 10,8 $5,000,000 .. 482, 176 10,6 $6,000,000... - 640, 000 |... 2.0.2 eee - 10, 5 LLL LAI 1A billintroduced on Jan. 8, 1947, In the House of Representatives, $Cth Cong., Ist sess. TInternal Revenue Code, as amended by Revenue Act of 1948. 2 Assumes only 1 spouse has income. 4 Assumes taypaver is under 65 years of age. 8 Point at whieh 1-percent reduction of present ‘aw tentative tay takes effect ui cer H.R. 6 Less than 0.06 percent Treasury Department, Division of ‘tax Research, Jan 28, 1017 TABLE V.—Com parison of amounts and effective rates of individual-income tar under present law,' H. R. 1,2 and plans to increase per capita czomptions to $600 and to $700, for specified amounts of net income MARRIED PERSON * DEPENDENTS Amounts of tax Effective rates Net imcome before personal e j Plans to inerease per capita Plans to increase per {income before personal exemption evemptions to— capita exemptions to— Present law H.RJIS ve eee Present law, HR bs f. _—— 700 $600 $700 Percent Percent Percent Percent $95 ii $10 [eee eee 3.8 3.0 0.8 |--.n0e weneee 190 Taz 14 6.3 51 3.8 18 ae) e04 sod 22 .& 7.6 7.6 6.7 csi ail 505 422 1.8 0.4 10.1 8.1 708 638 74 O81 8 10.6 a) 1.0 1, 202 1, 084 1,198 1, 004 16.2 12.9 14.0 We 1, 862 1, 420 1, 748 1, 634 18.6 14,9 17.6 16.8 3, 039 2,011 3, 475 4, 412 24.3 10.4 23.2 22.1 5, 890 4,712 5, 700 5, 610 20. 6 28.6 28.5 27.6 &, 422 6, S18 8, 207 8, 073 34.1 27.3 43. 2 32.53 24,111 19, 289 23, 837 23, 504 48,2 38.6 47.7 47.1 42, 323 33, 858 42, O15 41, 707 56,4 45.1 56.0 55 62, 301 40, 841 G1, 970 61, 640 62.3 49,8 62.0 61.4 : Veneeeee eee 8 ne eeee ee ee ee 190, 475 152, 880 10, 120 189, 783 70,2 61.0 76.1 75.9 $304,300 * 237, 500 190, 000 287, 156 236, 809 78.0 12,4 ire) 7.8 $350,000... - 276, 925 225, 275 276, 79 276, 233 79.1 64. 4 7.0 78.0) $500,000_. j 400, 600 |. 341, 300 406, 254 405, 208 81.3 G8, 3 KI.3 8Le $750,000. - (22, 725 534, 675 622, 379 622, 033 &3,.0 71,3 4d, 0 42,4) $1,000,000, - &38, 450 728. 060 838, 504 838, 158 kB, 72.8 #3, 0 KB 4 $2,000,600, . {| 1, 703, 350 1, 401, 550 1, 703, 004 1, 702, 658 BH, 2 75, 1 85. 2 Bi. 1 $8,000,000. . 2, 505, 000 2, 275, 050 © 2, 605, 0100 * 2, 505, 000 8b. 5 75,8 #O. b 85.5 £4,000,00. - . 93, 420, (00 3, 044, 550 6 3, 420, 000 68, 420, OX) 85.5 76.2 85.5 86.5 $5,04K),00), - sees : 6 4, 275, 000 , 3, 822, 050 6 4, 275, 000 6 4, 276, 000 80.5 76.4 85.5 85.5 $0,000,000... eee ee 5, 130, 000 * 4, 690, 000 6 5, 130, 000 6 6, 180, 000 85.5 76.6 85.5 85.5 {Internal Revenue Code, as amended by Revenue Act of 1945. 3A bill Introduced on Jan, 3, 1947, in the House of Representatives, 80th Cong., Ist sess, 3 Assumes only one spouse has Income. 4 Assumios taxpayer is undor 65 years of age. ® Point at which 1-percent reduction of present law tentative tax takes effect undor H. R. L eT kine into account maximuin effective rate limitation of 85.6 percent, TYoLive into secaunt maviaum ehective rate Hmitation of 76.5 peroent, Treaviry Department, Division of Tax Research, Jan £2 (647,
APPENDIX TO THE CONGRESSIONAL RECORD A1033 Taste VI.—Decrease tn amounts and effective rates of individual-income tax under H. R. 11 and under plans to increase per capita ez- emptions to $600 and to $700, compared with present law? and tax decrease as a percentage of present tax liability and net income after taz, for specified amounts of net income with present Net income before persouu! exemption Decrease in amounts of tax compared i Plans to increase per capita exemptions to— MARRIED PERSON \—2 DEPENDENTS Percentage-point decrease in effective rates compared with present law Plans to increase per capita exemptions to— Tax decrease asa percentage of present tax liability Plans to increase per capita exemptions to— Tax decrease as a percontage o! net income after tur Plans to increase per HRA! capita exemptions to— ent Percent Percent 0.8 3.0 3.8 20.0 1.8 2.5 53 20.0 o 10 3.8 20.0 2.4 1.7 33 20.0 2.7 1.4 2.8 20.0 3.2 1.2 2.5 20.0 3.7 1.) 2.3 10.0 4.9 1.1 22 20.0 5.9 1.0 18 20.0 @& 9 1s 20.0 0.6 6 1 11.3 4 8 3 7 | 3 ol +2 al 2 al al ad ol 1 A bill introduced on Jan. 3, 1947, in the House of Representatives, 80th Cong.. Ist sess. 4 Internal Revenue Code, as amended by Revenue Act of 1£45. § Assumes only 1 spouse has income. 4 Agsumes taxpayer is under 65 years of age. § Point at which 15-peroont reduction of present law tentat:ve tas takes efiect under IT. R. 1, ¢ Less than 0.05 percent. Treasury Department, Division of Tax Research, Jan. 28, 1947. President Truman’s Policy for Greece REMARKS HON. ROBERT J. TWYMAN OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mr. TWYMAN. Mr. Speaker, a per- son can become so international in his thinking that he finally becomes an iso- lationist. My dictionary defines an iso- lationist as “one who advocates an iso- lated condition, especially of a nation or country as regards alliances and rela- tions with others.” President Truman proposes that we act alone with refer- ence to Greece and Turkey. The United States was persuaded to join and largely support the United Nations organiza- tion, in the belief that just such a situa- tion as the President now desires to cor- rect will be taken careof. The President said, “No other nation is willing and able to provide the necessary support for a democratic Greek Government.” Just as other nations are not willing and able to provide the support now, they may not be willing and able to provide the support later and we may find ourselves quite isolated. I include in my remarks a very excel- lent editorial by John 8. Knight, editor and publisher of the Chicago Daily News, which appeared on Saturday, March 15, 1947. I recommend that every Member of the House of Representatives read it. I certainly disagree that we should place a lot of our young men in Greece as “‘sit- ting ducks” to await a second Pear] Har- r. The editoria] follows: TRUMAN PoLicy ror GREECE hisxs BANK- RUPTCY AND WAR So that our readers will clearly understand what is in store for them, I quote a para- graph from a New York Times dispatch by James B. Reston, their specialist in interna- tional affairs: “What worries President Truman’s advis- ers at the moment is not this loan to Greece and Turkey but the next one.” In that one sentence Mr. Reston epito- mizes our future foreign policy: “Fight com- munism with dollars.” It is an easy slogan and should go down well with timid Americans who pull the cov- ers over their heads every night just in case the Russians might decide to drop a few atomic bombs in their neighborhood for target practice. The true meaning of the slogan should frighten them even more, for actually it means, “Fight communism with dollars— and men if necessary.” MORAL POSITION HIGHLY UNTiNABLE The President, influenced by his military advisers, for whom he has a profound re- spect, has in effect told Russia to keep hands off Greece and Turkey, although we have consistently encouraged Great Britain to rue the Greeks with force through a puppet g. In view of the idealistic statements made by the leaders of all countries during the early days of the United Nations, our moral position with regard to the Greeks is highly untenable. What we are actually proposing to do, although the vast majority of Ameri- cans seemingly are failing to grasp ite signifi ¢€00 $700 Percent Poreent Perceat 0.8 3.2 4.0 1.4 2.7 5.4 2.1 21 4.2 27 19 3.8 3.1 16 32 3.8 16 3.0) 4.6 1.4 28 4 1.4 24 &.3 1.3 27 10.3 1.4 27 Is, 6 11 al 26.0) a) 1.4 33.1 9 1s 4.0 “6 1.2 71.0 wh 10 70.7 5 a] 9,9 .4 72 60,2 3 of 68.6 12 4 cance, is to assume the burden of world secu- rity with American dollars and troops. This is a step that goes far beyond our hu- manitarian desire to aid Greece in her pcst- war difficulties, the premise upon which many people are blindly accepting the Presi- dent’s recommendations. With unconscious irony, President Tru- man’s address to Congress was delivered while an 11-nation commission from the United Nations Council is in Greece trying to get the facts. In bypassing the United Nations so cns- ually, the President has dealt that organi- zation’s prestige a serious blow. Did we not accept the UN as the means to world peace, to security for the small na- tions? Why, then, rhould the United States take unto itself the full responsibility for deciding how world peace shall be main- tained when the problem had been specifi- cally assigned to the United Nations from the outset? REMEMBER WHAT WE BAID? Lest your memories be short, a few quota- tions from earlier pronouncements by United Nations leaders are in order: April 26, 1945: “This conference is called upon to consider the problem of setting up an organization to protect the general peace and security of nations after the war. * © © It is obvious that no ons wishes to restore a League of Nations which had no rights or power. * * * The Soviet Gov- ernment is a sincere and firm champion of the establishment of a strong international organization of security. * * * We will fully cooperate in the solution of this great problem with all the othe~ governments which are genuinely devo.ed to this noble cause.”—V. M. Molotov, chairman of the So- viet delegation to the San Francisco Confer- ence.
A1034 July 15, 1946: “We all have to recognize— no matter how great our strength—that we must deny ourselves the license to do always as we please. No one nation, no regional group, can, or should, expect any special privilege which harms any other nation * ¢ that is why we have here resolved that power be used not to wage war, but to keep the world at peace and free from the fear of war."—President Truman at the San Francisco Conference. June 21, 1945: “Both the Greek Govern- ment and the people as a whole look friendly and admiringly at the Soviet Union by whose side they fought for the mainte- nance of human liberties."—Under Secretary Zakynthinos of the Greek Press and Informa- tion Department. . November 23, 1945: “What does it concern Great Britain whether Greece is a mon- archy or a republic? It is not for us to de- cide."—-Foreign Minister Ernest Bevin. February 22, 1945: “The three powers pledged joint action to uphold the right pro- claimed in the Atlantic Charter of all peo- ples to choose the form of government under which they shall live."—Edward R. Stet- tiniua, Jr., Secretary of State. March 1, 1945: “Vaguely defined spheres of influence are incompatible with the basic principles of international collaboration.”— From Franklin D. Roosevelt’s report on the Yalta meeting. June 26, 1945: “Establish a special organi- gation for defense of peace and insurance of security from among the representatives of the peace-loving nations; to place at the dis- posal of the steering body of this organiza- tion the maximum quantity of armed forces sufficient for the suppression of aggres- sion.”—A. A. Gromyko, acting chairman, the Soviet delegation at San Francisco. OUR LEADERS FORESEE WAR The noble words quoted above are just as noble today. The tragic difference is that they have been so soon forgotten. Russia is guilty of obstruction and hair- splitting in the councils of the United Na- tions while practicing a determined isolation- ism for her own selfish advantage. Great Britain, facing economic collapse and loss of empire, and living in fear of Russia, has turned once again to the United States for succor. Our political and military leaders are 80 sure that we will eventually go to war with Russia that they have determined to call Russia's hand in the Balkans, a course of ac- tion that may ignite the first spark of the war they would avoid. The fallacy of our position is that: 1. We are not supporting a representative government in Greece. 2. The Greek problem is a world problem and not one specifically reserved to the United States and Great Britain. 3. A political loan to Greece further weak- ens the United Nations. 4. We are inaugurating a change in foreign policy which commits us morally to bailing out every tottering nation in Europe and liquidating its Communists. 5. The constant drain upon our own re- sources will eventually make it impossible for us to aid anyone. 6. We are asking for a war with Russia. WHY NOT USE THE UNITED NATIONS FUND? Granting that Greece needs money, what about the $9,000,000,000 that are gathering dust in the World Bank of the United Na- tions? What is being done with Greek assets frozen in London? Why can’t the stabiliza- tion fund of the United Nations proceed to stabilize her currency? American taxpayers have already poured 6480,000,000 into Greece since the end of the war. The Greek army, described by Presi« dent Truman as “small and ill-equipped,” has absorbed about $44,000,000 worth of equip- ment, some of it second-hand lend-lease. Do the dreaded Greek guerrillas from the mountains have more? When we have made the loan advocated by President Truman, what about the 70 per- cent of Greece's overseas debts that are held by British banks? Will we pay them too? It was Franklin D. Roosevelt’s concessions at Teheran that gave Russia nine-tenths of the Balkans. Having handed so much to the Com- munists on a silver platter, we now belatedly determine to save the end piece for Great Britain. We intend to do it by opposing the guerril- las who fought the Germans under British and American orders. We intend to do it by backing the Greek Army, which, upon Chicago Daily News cor- respondent George Weller's authority, is heav- ily spiked with quisling members and officers of the pro-German security battalions. These are the democratic forces which new Ameri- can loans wil) arm in their anti-Communist crusade against the mountaineers who fought the Nazis. Weller also asks why, if President Truman’s claim is true that 85 percent of the Greeks support the royalist government, it should cost so much American money for the British- armed five-sixths of the population to annihi- late that sixth man. I do not believe the American people real- ize the gravity of the step which President Truman has advocated. It is not a question of sending $400,000,000 to aid Greece and Turkey but rather the assertion of our deter- mination to combat the spread of commu- nism everywhere. If this policy is carried out to its logical conclusion, it will drain our Treasury while destroying any hope that the United States and Russia can ever work together. Our decision to appropriate the policing functions of the United Nations is a step fraught with such grave potentials that Con- gress should not be stampeded into giving blanket approval to the President's proposal. For, as President Theodore Roosevelt once said, “You can’t shake your fist and then shake your finger.” JouN 8. KNIGHT. Address by Hon. Alexander Wiley, of Wis- consin, on Labor in the Atomic Age EXTENSION OF REMARKS or HON. ALEXANDER WILEY OF WISCONSIN IN THE SENATE OF THE UNITED STATES Monday, March 17 (legislative day of Wednesday, February 19), 1947 Mr. WILEY. Mr. President, I ask unanimous consent that there be re- printed in the Appendix of the Rrecorp the text of an address which I recently delivered over a number of Wisconsin radio stations on the subject of labor in the atomic age. There being no objection, the address was ordered to be printed in the Recorp, as follows: AN AMERICAN LABOR PROGRAM FOR THE ATomic AcE Fellow Americans, I am very grateful to this station for the opportunity to chat with you on the important subject of labor. As you know, Congress right now has many labor bills pending before it. I am not a member of the Senate Labor and Public Wel- APPENDIX TO THE CONGRESSIONAL RECORD fare Committee, which has been holding hearings on these bills, but I have, of course, followed the hearings closely. Every public opinion poll shows that our people are fol- lowing this subject closely, too, because they have given a mandate to Congress to enact constructive labor laws. Those laws must set aright the system of checks and balances in our land which has been damaged by various racketeering abuses. ‘WISCONSIN'S GREAT LABOR POSSIBILITY Our own State is deeply concerned about the labor problem, particularly because of certain long-standing strikes that have marred Wisconsin's model industrial peace. We of the Badger State are, of course, look- ing forward to our 1948 centennial, to the completion of Wisconsin's first hundred years of s‘atehood, and to all that it promtses to labor, to management, and to the public. We see no reason whatsoever why Wis- consin’s next 100 years should not have such industrial peace and productivity as will sur- pass the finest records of our own and every other State. We want new and expanded industries in the Badger State in the coming period. Through labor peace, we can attract these industries and hold them, and thus achieve new heights of prosperity for all. ATOMIC AGE POSSIBILITIES America as a whole in this atomic age wants first and foremost to preserve the Re- public. She wants industrial peace and full production for her 58,000,000 workers. She doesn't want a needless depression to occur— @ depression from which the Communists alone will profit. All of us want to break out of the rut of the past, the rut of strikes, the rut of labor and management pulling at cross-purposes, We want an ever higher standard of living for American workers—thicker pay envelopes that will buy more and better goods; we want better housing for our workers and better and safer working conditions. We know that in this atomic age new unheard-of luxuries and comforts are possible for every worker, as well as for every employer, if we but have the vision to secure them—the vision and the cooperation and the strength to take appropriate action. THE DIGNITY OF LABOR Labor is entitled to the fruits of the mira- cles of the atomic age. Yes; to the fruits of its toil. Labor is dignity. “To labor is to pray,” reads an old proverb. “Honor lies in honest toil,” said Grover Cleveland. “To re- Joice in one’s labor; this is the gift of God,” says the Bible. How may labor achieve its full dignity? How may we realize the full possibilities of labor in the atomic age? I am going to make certain suggestions in answer to those questions—suggestions on what America needs. These suggestions are not necessarily complete in themselves, be- cause this subject is a vast one. My listen- ers will undoubtedly have their own sugges- tions, and, together, we may arrive at a rea) solution to our problems. Remember, we are all workers—we are all one class—Americans. Whether we be called farm hands or mill hands or retailers or salesmen or Congressmen, we earn our bread by the sweat of our brow, and all we ask for is justice in earning our daily bread. Well, then, in the light of these facts let's first see what America does not need. AMERICA DOESN’T NEED THESE ITEMS 1. We don’t need any “foreign “isms” or ideologies in the picture. That means we don’t need the phony solutions of commu- nism or fascism. We don’t need and don't want their provocation and incitement, their alien spirit of hatred, their venom in setting class against class, race against race. 2, We don't need name calling, bitter prej- udices and anger. We need a calm, reason- able, peaceful approach to our problem,
APPENDIX TO THE CONGRESSIONAL RECORD 8. We don’t need segmented thinking—the wort of thinking that is concerned only about the welfare of one segment of our population. We've got to think about all segments—about the public interest—most of all, the interest Of 140,000,000 Americans—labor, manage- ment, farmer, housewives—all of us. 4. We don't need backward thinking that would try to make us turn back the clock to the days before there were unions—before there was collective bargaining. Unions and collective bargaining are here to stay, but collective bargaining must become a two- way street. Union busting and antiunion- ism are not American any more than man- agement busting or antimanagement are American. WHAT AMERICA NEEDS—-IN PRINCIPLE Well, if this is what America does not need, what does she need? You can sum- marize what she needs in these few words: (A) The rule of law—not the rule of rack- eteering or of violence. (B) The rule of democracy—not the rule of labor-boss dictatorship or management dictatorship. (C) The rule of equality—not the rule of inequality of treatment of either Jabor or management. (D) The rule of the public welfare—not the rule of special interest. (B) The rule of self-help—not reliance on Washington, D. C., to legislate the millen- nium in labor relations. ‘WHAT AMERICA ‘IN SPECIFIC ACTION Now, these are just five principles, and they are useless unless we apply them. Let's do just that. Let’s list the specific concrete actions which every one of us—labor, man- agement, Congress—must take to realize the fine possibilities of the atomic age. Here we go: 1. Labor must take steps to clean up its own house. This is labor’s most important job—to do for its own good and the good of the Republic. This self-help, this self- reliance can be as important to labor as any- thing else Congress can do. Labor must purge itself of the Communist Cells and Communist leadership that has taken over so many unions. Labor must eliminate ite racketeers—the vermin who want to play the industrial game only for their own profit and only their own way— breaking all rules. Labor must oust the boases who control crooked union elections. Labor must take an interest in union affairs; it must not cast ballots for union officers who are America-hreaking, who do not respect the rights of the public. 2. The primary action for cleansing unions must come from labor itself, but Congress can help by passing legislation to inaure secret union elections and for publicizing of union finances, 8. The abuses of the closed shop should be outlawed. We should protect every Ameri- can's constitutional freedom to work wher- ever he pleases and under what conditions he pleases, in a union or outside a union. Many folks object, as I do, to a poll-tax on voting which prevents a man from balloting if he doesn't pay a certain fee. These folks say such a tax is unconstitutional. Isn't it then, unconstitutional if a man is required to join a union and pay what the union says in order to get his job and hold his job? 4. Mass picketing, violence at the plant gate and within a plant, threats or other strong-arm tactics must be outlawed. 5. Slow-downs and other limitations on production must be barred. 6. Bona fide supervisory employees are members of management and should there- fore not be organized into unions, lest the conflicting loyalties of these foremen between labor and management ruin their effective- 7. Unions should be made liable for Gamages if they break contracts just as busi- nesses are liable. 8. Jurisdictional strikes between untons should be outlawed, as well as secondary boy- cotts. In these actions, one union boycotts an employer simply because his products are in part made from or use another union's materials. 9. No union should be allowed to impose a tax levy or royalty on an employer's products. This infringes on the taxing power of the State, it increases cost of the products, im- pedes commerce and forces private, unregu- lated monopoly. 10. Employers should be given the right of free speech under the National Labor Rela- tions Act. They should be given the right to petition for union elections just as unions have that right. 11. Machinery for conciliation, mediation, and voluntary arbitration should be strength- ened so that collective bargaining can settle disputes peacefully. 12. Where all other efforts fail and where- ever the public interest is threatened by a proposed strike in a public utility like elec- tricity, transportation, telephone, gas, or a key Nation-wide industry like coal or steel, Congress should set up means for compulsory arbitration of disputes. This means that the settlement of the dispute should be made by an impartial arbitrator or board of arbitra- tors which would hand down the decision which would then be binding on both man- agement and labor. Strikes in utilities and key Nation-wide industries must be outlawed. The public welfare must be protected. 18. Congress, labor, and management should take steps to promote industrial safety. Factory accidents last year cost over 16,000 lives and countless more losses of limbs and of working time. 14. Congress should stimulate profit-shar- ing plans in industry—employees’ bonuses and other incentives to encourage full pro- duction. SUMMARY OF ACTIONS These are but 14 points. Many more could be added. Their total goal is the same: To give the laboring man a break. To give management a break. Most of all, to give the public a break, 80 that America can have full production and industrial peace. With full production, the supply of goods can be increased, and when that happens, when supply catches up with demand, the high cost of living will come down. Production means work, honest work, ef- fective work. There is nothing wrong with this Nation that honest work can’t cure. CONCLUSIONS Fellow Americane, we have seen the splen- did possibilities ‘confronting Wisconsin and America in this atomic age, possibilities for prosperity and an unmatched high standard of living. We have seen what America does not need to solve her labor problems, and what she does need, generally and specifically, actions for the rule of law, for democracy, for equal- ity, for the public welfare, for self-help. We have seen that labor must, most impor- tant of all, cleanse its own house of Commu- nists, subversive alien-minded saboteurs who almost wrecked American defense before Ruesia got in the war. And labor must Cleanse its house of racketeers and dictato- Tial bosses, Congress, management, and the public must do their part, too, as partners of labor in understanding labor and helping the Nation to achieve industrial harmony and full production. Work is the answer to our problems in the atomic age or any other age. There is noth- ing wrong with America that work and un- derstanding won't cure. A1035 Aid to Greece and Turkey—lInterview With Hon. Ralph E. Flanders, of Vermont EXTENSION OF REMARKS HON. RAYMOND E. BALDWIN OF CONNECTICUT IN THE SENATE OF THE UNITED STATES Monday, March 17 (legislative day of Wednesday, February 19), 1947 Mr. BALDWIN. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp the text of an interview over the radio, Station WNAC, Boston, and the Yankee net- work, by Francis W. Tully, Jr., with the junior Senator from Vermont I[Mr. FLANpers] concerning the President’s recent message. It is an excellent inter- view; it is sound common sense and I think it should be in the Recorp. There being no objection, the inter- view was ordered to be printed in the Recorp, as follows: Mr. TutLy. Senator FLANDERS, the plan to aid Greece and Turkey represents a major departure from our previous foreign policy. What is your reaction to President Truman's message to Congress? Senator *Lanpers. I am sure that in some respects the feelings of all of us in listening to the President’s message were the same. We realized the gravity of the situation. We realized that unless something was done in Greece and Turkey, chaos and subsequent totalitarianism would continue to spread westward and southward over the world from its European center in eastern Europe. Mr. Tut.y. Are you in favor of the Presi- dent’s recommendations? Senator FLANveErs. I favor the granting of that request simply because it seems the only thing to be done at a moment when something needs to be done quickly. How- ever, this sudden revelation to us of an emergency indicates one of two things: Either the administration has been off its guard without realizing what has been going on in the world and without any coordinated plan for meeting it; or, its plans have been insufficient or otherwise ill-advised and their failure has required a sudden change of strategy. The time has come when our total foreign interests must be studied as a whole. The e.tent of our commitments must be studied as a whole. An economy of effort, of expenditure, and of responsibility must be determined upon, not only for the sake of maintaining our internal strength but also for the sake of giving us the maximum of long-range influence in the maintenance of the peace of the world. Mr. TuLuy. The President emphasized in his message that he recommends aid to Greece and Turkey as a means of preventing the spread of totalitarian ideologies. The President made it clear he referred to the spread of communism. Do you agree to that motive? Senator PLANDERS. I agree with that motive. The nations of central Europe were cyni- cally and cold-bloodedly sold down the river so far as the four freedoms were concerned. It is clearly apparent that the enunciation of these four freedoms was for propaganda purposes only. From the standpoint of our own self-respect, we must make an endeavor to support them in the regions which we have betrayed. This is a moral responsi- bility, but it fits in with our self-interest as well. We cannot be prosperous and at peace for long in a world in which totalitarianism is spreading.
A1036 Mr. TuLiy. Do you feel that this is the right way to prevent the spread of commu- nism? Senator Firanprers. The proposed action is @ temporary means of meeting a critical sit- uation. We must not fool ourselves into believing that it is anything more. Funda- mental means of protection must be de- vised, Mr. Tutty. We have made a number of commitments for the shipment of goods to Russia. Do you think these promises should be kept by the United States? Senator FLanpERS. This question raises a second one: Has Russia kept the promises she made in the Yalta and Potsdam agree- ments? There is no question about the answer. The answer is “No.” Meanwhile, the people of this country are deeply con- cerned over the punctilious way in which we are fulfilling in time of peace our lend- lease agreements to Russia, made under the stress of war. It is incredibly foolish of us to continue the practice. In so doing we are throwing away the immediate means, which lie ready at hand, to compel Russia to do what she has promised. We have no moral responsibility whatever for meeting one side of a group of agreements which must be considered in the light of mutual responsibilities. Feeling as strongly about this as I do, I introduced into the Senate on Friday a joint resolution, which reads as follows: “Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That no fur- ther shipments of goods to the Union of Soviet Socialist Republics, whether by pri- vate sale or pursuant to agreements made with that country by the United States, be permitted until that country has fulfilled the commitments made by it under the Yalta and Potsdam agreements.” Mr. Tutty. Specifically, Senator, what con- trols do you think should be placed in effect against Russia? Senator FLANDERS. Our present means of bargaining are economic, They are the per- suasive arguments which we bring to the council table in requiring of Russia that she keep her agreements and become a will- ing and cooperative member of the United Nations. Whenever and wherever there is an economic need of Russia’s which we can fill, it must be made contingent on her con- tinuing wholehearted cooperation. Mr. Tutiy. In your opinion, Senator FLan- pers, would it be better to build up the economy of Greece and Turkey than to build up thelr armies? Senator FLanpers. The ultimate defense of Greece and Turkey against that particular type of totalitarianism which we call com- munism does not lie in armies or in any other form of military force which we can bring to bear in their defense. It is unfor- tunate that in Greece, particularly, armed Communist bands have driven the peasants from their land so that they cannot plant and harvest crops, or protect and feed their flocks and herds. That minimum of armed force required for protecting the food raisers of the country is therefore essential. With this essential taken care of, Greece can, by its own efforts, work its way back to eco- nomic self-sufficiency, thereby raising the best defense possible against the spread of communism. I suppose the situation in Turkey is rather more simple. I would ex- pect that the principal danger in that area would come only if Greece collapsed. Mr. Tutty. Some Members of Congress have been puzzled by the wording of the President’s message, in that part which ap- plies to sending military personnel into Greece and Turkey. Do you think he asked for authority just to send military staffs and technical personnel, or whether the request actually includes the authority to send troops? Senator Franprrs. I suppose that the Pres- ident may want to send a few thousands of men and oficers, primarily officers both com- missioned and noncommissioned. If we have to send a real army, we shall have failed in what we undertook. Mr. TuLtuiy. Senator FLANDERS, you men- tioned earlier that you feel very strongly that the questions of aid to Greece and Tur- key are only a part of the entire picture involving our foreign policy. What other matters do you think should be considered along with these questions? Senator FLANpers. It seems very clear to me that we have become involved in this whole complicated situation, because the United Nations is not yet prepared to take over a situation of this sort. This must give us serious concern and lead us to consider what the remedies may be. As one means toward persuading Russia to cooperate, I have suggested our use of economic sanctions. There are other possi- bilities besides, which should be thoroughly explored. For instance, why should we not form within the boundaries of the United Na- tions a group of the free nations? We cannot use the word democratic nations nor can we use the word democracies, be- cause the totalitarian powers have debased the currency of those ancient and honorable words. The impression of the coin remains, but the gold of its meaning has been ex- tracted and worthless metal substituted therefor. When we speak of a group of free nations, we mean the nations devoted to the prin- ciple of rule by the majority, as expressed in free elections. Such a group, working to- gether in the United Nations, can firat dram- atize the purpose for which the nations were banded together, for international peace can be sought only along those lines. Second- ly, such a group would express by its very existence its unalterable opposition to the political principles for which communism now stands, as distinguished from its eco- nomic doctrines, There need never be any doubt on the part of Russia as to these prin- ciples, or as to their application to any given situation. Beating about the bush would be ended. Open positions would be openly maintained. A more perfect union of the free nations would thus develop within the United Na- tions, and entrance to that group would be freely offered with the hope and expectation that it would eventually embrace all the sig- natory powers. The Soviet Union has certain understand- able aspirations with which we are in sym- pathy. Those aspirations can be met with the Soviet Union as a cooperative member of the United Nations. They can be met in no other way. Her cooperation should be made easy. We should invite and entice as well as coerce. Only thus can the ultimate best interests of the people of Russia, itself, be served—as well as the best interests of our own country and the rest of the world. The Sugar Supply EXTENSION OF REMARKS HON. HARLEY M. KILGORE OF WEST VIRGINIA IN THE SENATE OF THE UNITED STATES Monday, March 17 (legislative day of Wednesday, February 19), 1947 Mr. KILGORE. Mr. President, I ask unanimous consent to have printed in the Appendix of the Rrcorp an editorial from the Wheeling News-Register of February 7, 1947, entitled “Our Sugar Supply.” There being no objection, the editorial was ordered to be printed in the Rzcorp, as follows: APPENDIX TO THE CONGRESSIONAL RECORD OUR SUGAR SUPPLY . The estimated Cuban sugar crop for 1947- 48 is 5,500,000 tons. This is an increase of some 1,500,000 tons over last year. A House food investigation subcommittee “insists” that the United States take this entire in- crease for itself. That would give us 3,300,- 000 tons, and leave 2,200,000 for the other 26 nations in the international sugar pool for whom we buy in Cuba. This would add 15 pounds to our per capita domestic quota, bringing it up to 40 pounds. Industrial users would get a 334-percent boost in their allocations. And what about the rest of the world? Representative AuGcust ANDRESEN, of Min- nesota, the subcommittee chairman, says that this windfall of sugar to the United States would be offset by dan estimated in- crease of 1,183,000 tons in European produc- tion. But he admits that European con- sumption would still be below ours. That is undoubtedly true. Europeans will enjoy an estimated increase of a little over a@ million tons, as against the 1,500,000 which we plan to take for ourselves from Cuba. Let’s see how the various countries fared for sugar last year. The round per capita figures for both home and industrial use show that the United States had 74 pounds; Canada and the United Kingdom, 81 pounds; France, 38; Norway and Belgium, 44; the Netherlands, 61; Switzerland, 41; Finland, 20; Spain, 10; and Germany, 12. Albania, Aus- tria, Greece, Italy and Yugoslavia, lumped together under UNRRA, average out 10 pounds apiece. So the United States, besides eating better than any of the countries listed, had more sugar than most of them. Only Britain had @ large consumption than we, but the rest of her diet was of wartime austerity. We don’t know how many Americans will agree with the sugar refiner who told the subcommittee that this country has been “a mighty good neighbor” and that “we should look to ourselves now.” But the whole business seems a little cold-blooded to us, if not downright greedy. Nowhere in all the debate on the subject could we find any indication of reluctance or compassion. Nobody said anything about millions of sugar-hungry—and blameless— youngsters in Europe. Rather more typical were these remarks, made on the floor of the House by Representative JOHN JENNINGS, of Tennessee. “Who is it that will comply with that demand of this international set-up that we should take sugar from our people and send it to countries that have not been any too friendly to us within recent months?” We keep remembering the glowing words about gallant France, gallant Belgium, gal- lant Norway, that have resounded through the halls of Congress. We keep recalling the expressions of pity and admiration that their citizens evoked from our Congressmen. But that was back in the days when these gallant people were fighting for their ex- istence, not threatening to rob us of an extra spoon of sugar for our coffee. Congress Puts an End to Speed of Rubber-Stamp Era EXTENSION OF REMARKS or HON. ARTHUR CAPPER OF KANBAS IN THE SENATE OF THE UNITED STATES Monday, March 17 (legislative day of Wednesday, February 19), 1947 Mr. CAPPER. Mr. President, I ask unanimous consent to have printed in the Appendix of the Rrcorp an address
APPENDIX TO THE CONGRESSIONAL RECORD entitled “Congress Puts an End to Speed of Rubber-Stan’) Era” delivered by me on March 9, 1947, and broadcast from radio station WIBW at Topeka, Kans. There being no objection, the address was ordered to be printed in the Recorp, as follows: A few days ago I received a letter from some fine Kansas women living in Wichita. This,letter sums up several hundred let- ters I have received in the past weeks. It might be termed a cross section of American home thinking in relation to what home folks believe this Congress should be doing. I believe I will read to you from this let- ter, from which I quote as follows: “We have been watching the Eightieth Congress and are afraid they are not ful- filling their campaign promises as promptly as they should. “It secms cur Kansas men are trying to back these promises and hope they remain loyal] to their pledges.” DISCRIMINATION IN THINKING One little thing which interested me is that these women referred to the “Eight- ieth Congress." That reference to the Eightieth Congress to me is very significant. Letter writers used to refer just to the Congress. There was little distinction in public thinking be- tween one Congress and another. But today an increasing number of Amer- fceans distinguish between one Congress— with its life of 2 years—and a succeeding Congress. A little thing, perhaps, but a hopeful in- dication that the average citizen is becom- ing more discriminating, even as he becomes more critical of his Government. In the same sentence the eight women from Wichita express the fear that the Mem- bers of the Eightieth Congress are not ful- filling their campaign promises as prompt- ly—“promptly” is the word used—as they should. Well, let me say a few words about that. In the first place, as sensed by the writers of this letter, this Eightieth Congress is dis- tinctly and decidedly different from the five or six—let’s make it seven—Congresses im- mediately preceding the eightieth. To my mind, it is closer to a free Congress than any which has convened since—well at any time since 1932. What I mean is just this, and I believe if you look back over the past decade and a half you will admit there is some justifica- tion for the statement. Starting with the Seventy-third Congress, which met in 1933, the Congresses have been more or less agents for carrying out the pol- icles and programs of the Chief Executive. The man in the street's name for it has been “rubber stamp” Congresses. DEMAND WAS FOR SPEED AND ACTION The late President Franklin D. Roosevelt Came into power on a wave of popular feel- ing that “something ought to be done.” And it ought to be done fast. The country faced an emergency, a crisis. Government should not deliberate. Con- gress should act. That was the popular will in 1938. The country demanded action in 1933-— and the country got action. The country demanded speed in 1933—and the country got speed. Manifestly, one man can make up his own mind and reach decisions more quickly than can majorities of the 96-Member Senate and the 485-Member House of Representatives. This is especially true if the one man is inclined to act on impulse; likes to grab an idea on the run and try it out, without risk- ing a headache by trying to think the whole thing through. 80 the country got action from its Con- grecszs in the thirties, The White House would send a message to Capitol Hill, recom- mending a certain line of action. If the particular crisis was felt by the White House to be supercritically critical, a pro- posed bill might accompany the message and the matter was labeled “must.” SPEED PREVENTS STUDY AND SCRUTINY A “must” messege, either accompanied or unsecompanied by the bill proposed to be enacted into law, was supposed to—and fre- quently did—go through Congress almost with the epeed of light in the early and mid- dle thirties. I sometimes felt then, and feel it more strongly now, that programs, which it was feared mipht not be accepted entirely (or at all) if carefully scrutinized and their after- effects studied, were labeled ‘‘must” just to prevent carcful scrutiny and study. During the first 4 years of the rule of the late President Roosevelt, what I have just outlined was the order of the day. Speed. Speed. Action. Action. I can remember the time when a Texas Congressman, Maury Maverick, listened to the first few paragraphs of a Presidential message—one of those not accompanied by a bill drafted in the executive department. This Congressman, in his enthusiasm and his desire for prompt action, obtained a copy of the message, scratched out the introduc- tory clauses, substituted an enacting clause (Be it enacted and so forth), and introduced that as a legislative bill. This wus referred to committee, reported out promptly, and passed both Houres, with only such changes in warding as would have informed laymen as well as attorneys that the measure was a recommendation instead of a carefully drawn legal enactment of a legislative body. That was the hey-dey of prompt congres- sional action. The “must” type of legisla- tion, which earned for Congresses the de- risive term of “rubber-stamp,” characterized leg slation enacted in 1938, 1934, 1935, 1936, particularly, It accounts for the loosely drawn Wagner Act, which allowed the ad- ministrators and the courts virtually to write their own labor legislation ever since—or at least until last November 5. Since that date the National Labor Relations Board has shown signs of getting back to the intent of Congress in accepting the White House- written (labor dictated) Wagner Act. CONGRESS PUT BRAKE3 ON COURT PACKING Congress began putting on the brakes in 1937, when the so-called Court-packing hill came up from the White House. Because the then Supreme Court had not caught the urge to rubber stamp everything that came from the White House, and even went so far as to declare some of the hastily drawn and promptly enacted pieces of legis- lation unconstitutional, the White House demanded that the Congress allow the Presi- dent to pack the Court by appointing 16 new Justices, making a total of 25 instead of 9. The country was shocked into understand- ing by the Court-packing bill. Congress re- sponded to the shock by refusing to pass the measure. Then, through 1987, 1988, and into 1939, the Seventy-ffth and the Seventy-sixth Congresses started the return to orderly leg- isiation, Committees studied bills, scruti- nized the language, amended bills. Meas- ures were argued and debated and amended on the floors of the two Houses. Prepon- derant New Deal majorities obtained the enactment of most legislation from the White House, but at least Congress did con- sider and deliberate instead of passing promptly whatever was suggested. Then, in 1939, World War II broke. The Executive regained, largely, contro] of the Congresses through the war period, and promptitude, action, speed again became the order of the day. During these 14 years of the Seventy-third to the Seventy-ninth Congresses, with ex- A1037 ception of the little more than 2 years noted—the people of the United States vir- tually had one-man rule instead of repre- sentative government. The period was marked by prompt, de- cisive, speedy action on almost all matters. SPEED BROUGHT UNBOUNDED SPEND!NG But that speed per!od also was merkcd by unbounded extravagance in Government. Maybe you remember it—spend and elect and borrow and spend and eicct. That period also was marked by the devcl- opment of an immense and complic-icd maze of bureaus, bureaucracy, and bureau- crate. During that period the public debt was run up from around $20,000,000,C00 tu £26).- 00,600,000. At the beginning of the speed pe:icd men had to work only a fraction of an hour & Gay to meet the Federal tax load. At the end of the speed period—1 de- voutly hope it is the end—men work 1 dzy for the Government for every 3 days they work for themselves. And@ that will go on for a long time to come. I have gone into this at some length, be- cause of the letter from these fine women trom Wichita, voicing the common fee ing that the Eightieth Congress is not fulfilling campaign promises as “promptly as they should,” to quote the language of this letter. From lack of time, I cannot read the rest of the letter in full. But these women of Wichita want economy in Government; they want labor legislation; they want the Army and Navy expenditures reduced toward peace- time sizes; they want lo get rid of remaining rent and other controls. Well, the Eightieth Congress is working along all those lines, EIGHTIETH 18 NOT A ‘‘RUBBER-STAMP"’ CONGRESS But please remember this is a new Con- gress. It is not a rubber-stamp Congress. It 1s not following the dictates of one man outside of Congress, nor of any one man or any small group of leaders in Congress. Appropriation committees, through sub- committees, are trying to do an intelligent and reasonable job of reducing expenditures. Senate and House Labor committees are going to bring out labor legislation. The Wagner Act is going to be amended, but only after full and complete hearings and very careful study of the whole subject, and care- ful scrutiny of the language so that it can- not be too easily misinterpreted by adminis- trators and courts. Also the Congress is trying to write labor legislation that will be fair to labor, to man- agement, and to the public. I am confident that this way of consider- ing and enacting legislation wil] get better results than the “speed” method of O. K.'ing, almost sight unseen, whatever is presented to the Congress for consideration. 80 have patience, my friends, and give the Eightieth Congress a chance to fimction as 8 legislative body should function in a free. representutive government. Measure it by results at the close of the session, rather than by “speed” at the sturt. Gentlemen of the Congress EXTENSION OF REMARKS oF HON. SID SIMPSON OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mr. SIMPSON of Illinois. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the
A1038 following editorial from the Pike County (Ill.) Republican: GENTLEMEN OF THE CONGRESS If some foreign invader should attempt to wrest 110,000 acres of Illinois’ most fertile land from the Commonwealth, there would be combative action, swift and definite, re- gardless of cost. An invader—the Mississippi! River—is do- ing this very thing in the case of the Sny Basin, a marvelous fertile tract of 110,000 acres lying in the counties of Adams, Pike, and Calhoun in western Illinois. The water level has been raised in this great valley, presumably by dams placed by Government in the Mississippi River pur- suant to plans for a deep waterway. Szep- age has become a problem in the valley. Silting and filling of the natural drainage channel of the valley—the Sny—restrains this channel from performance of its for- mer natural functions, and the valley has become subject to floods tumbling down from the uplands through the Sny’s tributary creeks. Because of the raising of the Sny's bed and the raising of the river level by the new dams therein, the floodwaters cannot get away to the river into which the Sny empties as rapidly as once they did. There is a remedy for this situation. The great Sny Valley—today a drowning valley— can be saved. The valley not only can be saved, but, to quote from the report of the engineers of the War Department (report of R. A. Wheeler, lieutenant general, Chief of Engineers, April 17, 1946), the proposed improvement is “‘eco- nomically justified.” The Pike County (Ill.) Republican is pub- lished and circulates on the Sny watershed. The Sny watershed comprises 195 square miles of Mississippi River bottom lands, aver- aging 6 miles in width, and 547 square miles of uplands. The watershed has a population of 22,780 engaged principally in farming and stock raising. Pittstield and sarry are the principal towns. The Sny (formerly a bichannel of the Mis- sissippi) meanders for about 60 miles through the valley from a point below Quincy in Adams County to join the main stream at a point in Calhoun County. It traverses the entire western area of Pike County. The Mississippi River flows are di- verted from the Sny at its upper end by the main river levee of the Sny Island levee drainage district. This newspaper fully approves the econ- omy policy of the Congress. It is thoroughly in sympathy with plans to trim Government spending. It believes every proposition in- volving Government spending should be viewed critically. It invites a critical con- sideration of this Sny Basin problem. The Sny Valley is a drowning valley. The War Department's engineers, after careful study, have a plan to save the valley. That plan is set forth in the report to the War Department by the Chief of Engineers, to which reference has been made. This 1s the only plan under consideration. It is this plan or nothing. The district engineer submitted his find- ings and recommendations following inten- sive study of the Sny Basin problem. He found the ratio of costs to benefits to be 1.0 to 139. He found that the improvement would reduce the frequency of flood damage to about once in 50 years as against the pres- ent ratio of a damaging flood about every 2 years (some valley farmers have had crop losses from floods for the past 4 years in suc- cession). He found that the improvement is economically justified. The division engineer concurred in the views and recommendations of the district engineer. The Board of Engineers for Rivers and Har- bors concurred generally with the reporting officers in the view that the improvement is “economically justified.” Chief Engineer's Report, April 17, 1946. The Board recom- mended the improvement subject to the pro- visions of local cooperation stipulated by the reporting officers. The Seventy-ninth Congress in its closing days approved the program of the engineers. The fiood-control bill, including an item au- thorizing this proposed flood protection for the Sny Basin, was enacted July 24, 1946 (Public Law No. 526, 79th Cong.). The au- thorizing enactment was signed by ths Pres- ident. We believe that a policy of refusing to ap- propriate for projects not already started cannot be altogether sound. We believe that urgency and prior investment are important economic factors. In fact, it seems to us quite likely that some projects of great urgency should be started rather than ac- celerate projects already under way for which the urgency is not as great. In short, is it not fair to assume an economy of public funds in applying such funds only to prcj- ects of the greatest urgency? The desperate status of the Sny Valley may be learned from the reports of the engineers. The Sny Valley is a drowning valley. Then, too, Government has an investment in this Sny Valley that in any economic way of thinking should be protected. Between 1888 and 1913, the United States maintained as an aid to navigation on the Mississippi River, the main stem Sny dis- trict levee which was originally constructed by local interests. Since 1940, the United States raised and enlarged this levee which was turned over to local interests for mainte- nance, and has improved and enlarged other levees in the area. Total costs to the United States have been approximately $1,022,000.— Chief of Engineers Report, April 17, 1946. Local interests have constructed and main- tained auxiliary levees, straightened and maintained channels of the Sny and major tributaries below the bluff lines, and con- structed sedimentation basins at the mouths of some of the major creeks. Expenditures for this work were reported to the engineers as approximately $3,733,000. So here in this fertile Sny Valley—a drown- ing valley for which there is an approved and adequate plan of salvation—there is already a huge public investment. Is this investment to be protected or lost? It seems to us that an economy-minded Congress cannot fail to sense the economy of this situation. (Notr.—This is the second of a series of three editorials designed to acquaint Con- gress with factual issues involved in the Sny Basin proposal.) / Economic Peace EXTENSION OF REMARKS HON. HARLEY M. KILGORE OF WEST VIRGINIA IN THE SENATE OF THE UNITED STATES Monday, March 17 (legislative day of Wednesday, February 19), 1947 Mr. KILGORE. Mr. President, I ask unanimous conseut to have printed in the Appendix of the Recorp an editorial appearing in the New York Times maga- zine of February 9, 1947, entitled “The Real Test Is the Economic Peace.” There being no objection, the editorial was ordered to be printed in the REcorp, as follows: THE REAL TEST IS THE ECONOMIC PEACE— WE LED IN MAKING THE POLITICAL PEACE; NOW WE MUST PROMOTE ECONOMIC STABILITY IN ALL NATIONS (By James Reston) WasHINGTON.—The premise of this article is that freedom and prosperity in other parts APPENDIX TO THE CONGRESSIONAL RECORD of the world are essential to our own pros- perity and to peace; that idle and hungry men are not the allies of democracy but the instruments of tyranny; that the economic peace is inseparable from the politica] peace; and that while almost everybody agrees with all this in theory, there is considerable op- position to putting it into practice. There is opposition to putting it into prac- tice for a number of reasons. The economic pgace costs money. Unlike the political peace, it means teking specific actions to abolish or do without the things that lead to war. It means loans to other Nations. It means lower tariffs. It means regulation of practices that restrict international trede. And unfortunately, it also means taking actions which run counter to strong private interests, popular political pledges, and even, in scme cases, to national tradition. The economic peace is, nevertheless, the immediate test of our leadership in world affairs. We own over half the gold, shipping, and industrial capacity of the world. What we do or fail to do with our own economy, therefore, influences most of the Nations of the earth. The premise stated above, cun- sequently, is at least worth considering. 1. Freedom and prosperity elsewhere in the world are essential to our own prosperity and to a stable pence. The facts of our own expanded economy indicate our increased need for foreign mar- kets. Before the war we exported about 10 percent of all the goods produced in this country and imported only about 6 percent of all the goods we consumed. Even though these exports meant the different between profit and loss in many cases, the idea has been frequently expressed that exports and imports were only a small part of our own economy and that they were comparatively unimportant. Since the late nineteen thirties, however, under the pressure of the war, the industrial capacity of this country has nearly doubled. Current estimates indicate that particularly our heavy industries are expanded beyond our normal capacity to consume their prod- ucts. For a while, during the present short- age of consumer goods, we can undoubtedly find sufficient markets at home, but steel production, industrial, transport, automotive, and construction equipment, and machine tool capacity will almost certainly be far greater after the present boom than we can consume at home. The old 10-percent-export figure, there- fore, is no longer valid. Even before the war we were exporting about 15 percent of our total production of industrial machinery, au- tomobiles and farm implements, 52 percent of our refined copper, and about 31 percent of our raw cotton and leaf tobacco. Since the war our need to sell these and many other products has greatly increased. That is our side of the picture: If we want to keep our people employed we must increase our markets abroad. The other side is that unless other nations are more prosperous than they were before this war, they will neither be able to buy our products nor defend their freedom. Unfortunately, the economic position of most countries is infinitely worse now than it was in 1939. Before the war their factories had not been smashed and their ability to produce and therefore to sell their products ‘was normal. Now, however, their production is low, their supply of dollars is virtually exhausted and most of their United States securities, which were a source of purchasing power in the Nineteen Twenties and Nineteen Thirties, are gone. The seriousness of this situation can be determined by looking at the importance of foreign trade to countries like Canada. Britain, the Netherlands and Norway. Even more than we, they depend on world trade. In 1937, for example, Norway spent over 60 percent of its national income for imports and earned over 66 percent of that income through its shipping services and other ex-
APPENDIX TO THE CONGRESSIONAL RECORD ports. Similarly, the Netherlands spent 40 percent of its income in that year on im- parts and earned 87 percent of that income from exports. The flow of world trade therefore, which is greatly dependent on the economic foreign policy of the United States, will play a deci- sive part in the role that these and other high exporting and importing countries like Britain, Canada, Czechoslovakia, Belgium, and Australia can play in world commerce and world security. 2. Idle and hungry men are not the allics of democracy but the instruments of tyranny. It is axiomatic that wherever there are severe shortages of the necessities of life theie are strict government controls, and the greater the shortages, the stricter the con- trols. When men are idle and hungry they do not sit around comparing the views of Hume, Locke, Voltaire, and Jefferson. They go forag- ing for fcod to feed their families; they get it by stealing, if necessary, and to control them Governments tighten contro’s even on the civil liberties, and this is the end of what we call democracy. Furthermore, men do not adopt a political and economic system just because it hap- pens to work well somewhere else. What men want everywhere in the world is food, jobs, and freedom. The ideal ts to have all three, but, despite many noble exceptions, if they have to choose they tend to take the jobs and the food, even if they have to give up freedom and follow tyrants. 8. The economic peace, therefore, is in- separable from the political peace. The United States took the lead in form- ing the United Nations; it also assumed leadership in halting the expansion of Soviet influence. In the United Nations Charter, we said that we were “determined * °* * to save succeeding generations from the scourge of war * * *; to reaffirm our faith in fundamental human rights, in the dignity and worth of the human per- son * * *; to unite our strength and to maintain international peace and secu- rity * * *; to promote social progress and better standards of life in larger free- dom * * * and to employ international machinery for the promotion of the eco- nomic and social advancement of all peoples * * *,” These commitments are not subject to anybody's veto. We have signed our name to these things. We did not say that we would merely try to deal with an aggressor if he broke loose, provided nobody vetoed our doing so. We said we were determined to establish conditions under which justice could be maintained; we didn't say we would try to promote the economic and social ad- vancement of the American people or the people of the hemisphere, but that we were determined to promote the economic ad- vancement of all peoples. Therefore, in the Charter of the United Nations itself, ratified by the United States Senate, 89 to 2, and now part of the political jargon of both parties, the economic and the political peace are inescapably joined. The Charter obligates us not only to outlaw war and repel it if it comes but to help re- move the economic and social conditions that lead to war. The Charter, however, is only part of our policy. We do not like to talk about power politics and the balance of power, but, whether we like it or not, we have been en- gaged ever since the end of the war in a vast battle of power politics designed to re- store some kind of balance of power in Europe. This political struggle with the Russians for a just and stable peace, however, would be meaningless unless it was backed up with economic action. The balance of power was restored roughly along the Stettin-Trieste line not because of the eloquence of James F. Byrnes but because of the power of the United States Army in Germany and in Trieste and the presence of United States naval forces in the area from Trieste to Salonika. In short, we have increased our commitments in the world. And for once we have managed to keep our power in bal- ance with those commitments, but this takes vast appropriations without which our di- Plomacy would be helpless, 4. Almost everybody agrees with this the- ory that the economic and pulitical peace are inseparable, but there is considerable opposition to putting it into practice. Scnator Hucu Butver, Republican, of Ne- braska, for example, voted to ratify the United Nations Charter, but he sezs no con- nection between this and the administra- tion's trade-agreement program. This pro- gram is designed to expand employment, Prosperity, and freedom here and abroad, but he calls it a hoax and says that what the people were really voting for last November 5 wes to kill this kind of program. Similarly, Representatives Knurson of Minnesota, GearwHaARr of California, Rerp of New York, and Jennins of Ohio, all Repub- licans on the key Ways and Means Com- mittee, do not oppose our adherence to UN Charter but they are carrying on their fight against lower tariffs and loans to foreign countries, There has been close consultation between the major parties on the formation of the political aspects of our United Nations policy and the political aspects of our Soviet policy, but there has been very little consultation and absolutely no agreement about the eco- nomic field, except perhaps the tactics of opposing the extreme protectionists on the Ways and Means Committee. The division between the parties on the administration's trade agreements pregram perhaps overemphasizes the difficulties of reaching an American foreign economic pol- icy, but the voting record on this and other foreign economic matters is certainly not re- assuring to those who want to see a bipar- tisan policy in substance as well as in name. A majority of Republicans voted for several important international economic proposals in the Seventy-ninth Congress. More than half of them approved in both Houses the ex- tension of lend-lease; the appropriations for UNRRA, and United States participation in the United Nations Food and Agriculture Organization and the World Bank and Fund. But occasionally they wavered on some as- pects of these. The voting records on the extension of the Trade Agreements Act in 1945 indicate that while it is popular to say that the tariff is a local rather than a partisan issue, the Republicans on the whole had swung against the act, whereas the Democrats were still for it. In May of 1943 the Republicans voted in favor of extending the Trade Agreements Act, 18 to 14, in the Senate and 145 of them voted for it and only 52 Republicans were opposed in the House. This was before the bipartisan cooperation on the UN was working effectively. In 1945, however, after the Republicans and Democrats were working together to se- cure a bipartisan policy on certain political questions, 15 Republicans in the Senate voted for extending the act to 1948, and 16 of them were against it; in the House only 33 Re- publicans were for extending it and 140 of them were opposed. At the present time, admittedly, there is no great flow of goods being held out of the United States by high tariffs. Also, for the time being, it is true that we do not know how the last tariff cuts are going to operate in a more normal world commercial market. A1039 But the nations of the world are now trying to buy our goods and they are making up their minds about the commercial policies we are going to pursue in the future. Any attempt, therefore, at this time to op- pose a move by the Truman administration toward freer world trade through reduction of tariffs and creation of an international trade organization would probably be fol- lcwed by an extension of rigid bilateral trad- int agreements on the part of other ccun- tries, And it would, at the same time, un- doubtedly be interpreted as a crippling break in the attempt to form a bipartisan American foreign policy. In a much larger sense, however, this prob- lem is moral before it is political. It is a test not only of the thinking of a handful of influential Senators and Representatives, but a test of our ability as a people to recognize new and important facts that defy old habits and favorite prejudices, In the past two decades we were confronted in the political field with a problem of equal gravity and we did not pacs it. The power end influence of those countries that wanted Peace was greater, we saw, than the power and influence of those that wanted war. We were among those who wanted peace, and we were asked to accept the simple idea—which had been approved time and again in our own national history—that we must gather our strength and combine it quickly with those who also desired peace in opposition to those who wanted war. It is a fact of some historic importance that though we had all the facts necessary to reach a conclusion in our own national inter- est on that question, we did not combine with the other peace-loving states soon enough to avoid war. After two wars we have now apparently learned this lesson or at least part of it. We have not yet recognized the full meaning of former Secretary of State Byrnes’ state- ment that “veto or no veto,” we were obli- gated to use our power against any nation that broke the rule of law. We have, how- ever, made unprecedented progress in the field of political responsibility. The question now is the economic peace, and again a test of our political maturity, not dissimilar to the question of collective security, is before the country. We have already recognized that the question exists by supporting the International Monetary Fund and the International Bank for Recon- struction and Development, by assisting the United Nations Relief and Rehabilitation Administration and by granting the British, French, and Italian Joans. But the problem of trade and employment all over the world is much wider than these. We cannet lend our way to a stable world. We cannot for a long time have aksolutely free trade any more than we can have absolute national self-sufficiency. But we can lead the way to a much freer exchange of goods; the world cannot achieve this un- less we lower our tariffs considerably and go along. The United States can do many things, but it cannot attain peace if it demands things that lead to war. It cannot be politi- cally international and economically nation- alistic. It cannot make customers out of paupers unless it agrees to let them work and sell in return. It cannot demand to export and refuse to import. It cannot lead the world successfully as the greatest creditor nation if it retuins its old debtor mentality. It cannot end military warfare unless it ends economic warfare. It cannot control the new ideas of an atomic age with the tired and shut minds of the Smoot-Hawley age. And it cannot bring the world together unless it can bring the Re- publicans and Democrats together on a lib- eral foreign economic policy.
A1040 A Constituent’s Advice EXTENSION OF REMARKS HON. JOHN R. MURDOCK OF ARIZONA IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mr. MURDOCK. Mr. Speaker, a very discerning constituent of mine, W. Bill Williamson, of Phoenix, Ariz., under date of March 12, this year, sent a message to Members of the United States Congress and of the Arizona State Legislature. As a veteran of the First World War and the father of a veteran of the Second World War, and also as a good citizen, Mr. Williamson is keenly interested in all matters affecting our country. As he looks about he sees much of evil in the commercial and social world and is in- clined to attribute some of these un- savory conditions to a lack of wisdom on the part of those who make the laws or by those who enforce the laws. Under leave to extend my remarks, I herewith submit Mr. Williamson’s advice to a wider reading. The item is as follows: There is one class of citizens in the United States—the common pecple—who are not re- ceiving very much consideration by our law- makers and other elected public officials. You are allowing various minority groups to step in and influence you in legislation detri- mental to the general welfare of the Nation. During the war years we put up with rationing, high prices, and restrictions and made many sacrifices to back up ouf sons on the battlefields. You taxed us to the limit, taking away a good percentage of our wages and salaries, and we bought bonds with what little savings we were able to make. You were not satisfied with this. You allowed the black-marketeers to reap a rich harvest on scarce and rationed items, and paved the way for an army of selfish war profiteers to amass great fortunes. You have failed to prosecute these profiteers, monopolists, and racketeers, blaming the laboriug men who want higher wages, for the high prices. You never have considered that unless they receive higher wages, they cannot eat and feed and clothe their families. If you will make these profiteers and rack- eteers pay their just share of the taxes, and allow us common people to make enough to live and feed our loved ones, the $300,000,- 000,000 war debt can be paid, and America will not become bankrupt. Just think. We must pay the Government taxes on every- thing over $500. How much will 8500 buy now? Veterans are unable to find houses that they can afford to live in. But war million- aires can afford to pay 650 per day in Florida and Arizona winter resorts and 90 cents for a drink of rum, and the monopolies can build large stores and office buildings, hotels, and pleasure resorts. The veteran, with his lim- ited means, cannot obtain a few boards with which to construct a lean-to to shelter his wife und babies. There is one court greater than even the United States Supreme Court. That is the court of public opinion, and when this court decides an issue, it will have appalling effects on you and the special interests which you have catered to for so many years. You are making a most fertile field for the spread of communism in this country, and you are un- dermining the very principles of democ- racy. Please wake up. Please give the proper consideration to the common man and the common woman of Amer.ca. They are in the majority—and in self-defense—must vote you out of office—unless you get wise to yourself, Compel the food racketeers and price- mongers to take a fair profit and a fair profit only. Prosecute and punish the war profiteers and all racketeers to the full limit of the law. Investigate the wasteful and un- fair tactics of the Veterans’ Administration, and all other departments of Government that has become a racket. For heaven's sake, please wake up—before it is too late. Five-Year Level-Premium Term Policies EXTENSION OF REMARKS oF HON. OLIN E. TEAGUE OF TEXAS IN THE HOUSE OF REPRESENTATIVES Thursday, March 6, 1947 Mr. TEAGUE. Mr. Speaker, under au- thority given to me to extend my remarks in the Recorp, I wish to state the purpose of H. R. 1327 which authorizes holders of 5-year level-premium term policies of United States Government life insurance to renew their policies for a fifth 5-year period, and to give my reasons for sup- porting this legislation. Over 37,000 World War I veterans are enjoying the protection of the 5-year level-premium term plan. Nearly 13,000 of these policy holders are in their fourth 5-year period and unless authority is granted to renew their policies at the low premium rate, these individuals and their families will not have this necessary pro- tection. This legislation was introduced at the request of the American Legion and is endorsed by the other veterans’ organi- zations. I believe that these organiza- tions and Congress would be rendering a great additional service to these vet- erans by continuing this plan of security for these families. TI sincerely urge veterans of both World Wars to convert their Government in- surance to ordinary life or to other per- manent insurance plans if they can afford the additional expense. In this way they can gain the advantages of cash, loan, and paid-up values in their insurance policies in the future. However, in order to take care of those veterans who cannot convert their poli- cies at the present time, the Veterans’ Administration should be authorized to accept renewals for a fifth 5-year period of term insurance. Price and Wage Controls EXTENSION OF REMARKS HON. GEORGE MacKINNON OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mr. MacKINNON. Mr. Speaker, to keep the record straight about who did APPENDIX TO THE CONGRESSIONAL RECORD what to OPA, under leave to extenc. my remarks, I insert, first, the statement of President Truman of November 9, 1946, directing the immediate abandonment of all control over prices except on sugar and rice; and second, the order of the OPA Administrator, effective November 10, 1846, implementing the President’s directive—Federal Register, November 14, 1946, page 13464. These two documents show who re- moved the controls and why: STATEMENT OF PRESIDENT DIRECTING ABANDON- MENT OF PRICE AND WAGE CONTROLS The general control over prices and wages is justifiable only so long as it is an effective instrument against inflation. I am _ con- vinced that the time has come when these controls can serve no useful purpose. I am, indeed, convinced that their further contin- uance would do the Nation’s economy more harm than good. Accordingly, I have di- rected the immediate abandonment of all control over wages and salaries and all con- trol over prices except that necessary to im- plement the rationing and allocation pro- grams of sugar and rice. Rent control, how- ever, must and will be continued. On October 14, I reported to the people on the subject of the meat shortage and our general stabilization program. In addition to freeing meat from control I directed that the lifting of other controls be accelerated. As & result, controls have been removed from practically all foods and a long list of other commodities, The Price Administrator has advised me that, with so much of the economy freed from price controls, clinging to the rest would, in his judgment, lead to distortions in production and diversion of goods to an extent far outweighing any benefit that could be achieved. There is no virtue in control for control's sake. When it becomes apparent that con- trols are not furthering the purposes of the stabilization laws but would, on the con- trary, tend to defeat these purposes, it ‘be- comes the duty of the Government to drop the controls. The major problem with which we have had to contend is the withholding of goods from the market. As price controls are drop- ped, one by one, many sellers naturally hold on to their goods in the hope that their turn will come next and that they can obtain a higher price. In addition to those who are holding on to goods merely in expectation of decontrol, there are others whose motive is deliberately to force decontrol by depriving consumers of essential goods or manufactur- ers of essential materials. This withholding is becoming so serious as to threaten key segments of the economy with paralysis. The real basis of our difficulty is the un- workable price control law which the Con- gress gave us to administer. The plain truth is that, under this inadequate law, price con- trol has lost the popular support needed to make it work. At best, the administration of price control is an extraordinarily difficult and complex business and it can work suc- cessfully only if the people generally give it their support. We have now reached the point where many of our shortages have disappeared and in many other areas supply is rapidly ap- proaching demand. In the 16 months since VJ-day the stabilization program has pre- served a large measure of general economic atability during a period in which explosive forces would otherwise have produced eco- nomic disaster, In fact, the situation is far more favorable for the return to a free econ- omy today than it was when the present badly weakened stabilization law was finally enacted by the Congress.
APPENDIX TO THE CONGRESSIONAL RECORD Nevertheless, some shortages remain and some prices will advance sharply when con- trols are removed. We have, however, already seen what consumer resistance can do to excessive prices. The consumers of America know that if they refuse to pay exorbitant prices, prices will come down. Wholesalers and retailers alike are aware of the danger of accumulating inventories at prices so high that they cannot be confident of reselling at @ profit. Manufacturers, thinking of their future markets, will hesitate to raise prices unreasonably. In short, the law of supply and demand operating in the market place will, from now on, serve the people better than would continued regulation of prices by the Government. The reasons which impel the lifting of price controls are not applicable to rents, Housing is desperately short and will con- tinue to be short for a long time to come. Tenants are in no position to resist extor- tionate demands. The fixing of rents by the ordinary processes of bargaining would bring hardship and suffering to our people. It may be that some adjustment of rents will be required, but control of rents and control over evictions must be continued. I wish that it were possible to keep effec- tive price controls on building materials in furtherance of the veterans’ emergency hous- ing program, under which we have seen an unprecedented acceleration both of home- building and of the production of building materials. But price control on building materials alone, with no price control on products competing for the same raw mate- rials, would drive these materials away from housing and defeat the objectives of the program. ‘The removal of price cellings on building materials will obviously necessitate a change in the approach to some of the problems in the housing program. I am asking the Housing Expediter to report to me promptly in this regard. We must continue an aggressive program of building homes and apartments for veterans. The removal of price controls lcaves no basis or necessity for the continuation of wage controls, which have operated, in most industries, only as an adjunct to price con- trols, Accordingly, I have issued an Execu- tive order terminating all wage and salary controls under the Stabilization Act of 1942. This does not affect, of course, the statutory provision governing changes in terms and conditions of employment in plants operated by the Government pursuant to the War Labor Disputes Act. I have asked the Bureau of the Budget, in consultation with the agencies involved, to prepare plans for the reduction of opera- tions resulting from today's action, and to devise the most effective and economical methods for administering the functions which remain. The lifting of price controls and wage con- trols results in the return to a free market with free collective bargaining. Industry has sought removal of price controls while labor has pressed for removal of control of wages. Both have insisted that removal of these controls would lead to increased production and fewer work stoppages. High production removes the hazard of inflation and brings prices within the reach of the mass market. Wage rates not justi- fled by labor productivity and prices not justified by manufacturers’ costs may bring the illusion of prosperity. In the long run, however, good wages, full employment, and sound business profits must depend upon management and workers cooperating to pro- duce the maximum volume of goods at the lowest possible price. Today's action places squarely upon man- agement and labor the responsibility for working out agreements for the adjustment of their differences without interruption of production. —App.——€66 OrpEer oF OPA ADMINISTRATOR IMPLEMENTING ParsIDENT’s DIRECTIVE To ABANDON PRICE AND WaGE CONTHOLS Chapter XI. Office of Price Administration. Part 1305. Administration (SO 193). EXEMPTION FROM PRICE CONTROL OF ALL COM- IODITIES EXCEPT SUGAR AND RICE SECTION 1. Commodities exempt. All com- modities (including services) are exempt from price control except: (a) Sugar and sugar solutions derived from sugar cane or sugar beets, including all grades of edible syrups and molasses, and blackstrap molasses (imported and domes- tic); (b) Corn syrup and corn sugar (imported and domestic); (c) Blended syrups (imported and domes- tic) which contain at least 20 percent by weight or volume of sugar, sugar solution, corn syrup or corn sugar, either singly or in combination; and (d) Rice, rough and milled (imported and domestic). Src. 2. Preservation of records. Records shall be preserved as provided by Supple- mentary Order 189. Src. 8. Stabilization Act of 1942, as amended. This order does not affect the notice requirements of section 1 of the Stabilization Act of 1942, as amended, appli- cable to common carriers and other public utilities. This Supplementary Order No. 193 shall become effective as of 12:01 a. m. November 10, 10946. Issued this 12th day of November 1946. Pau A. PORTER, Administrator. (F. R. Doc. 46-20381; filed, November 13, 1946; 10:46 a. m.) Bewildered Italy EXTENSION OF REMARKS OF HON. JOHN J. ROONEY OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Monday, March 17, 1947 Mr. ROONEY. Mr. Speaker, I have just read with great interest and con- siderable concern a very interesting and compelling article by Vincent Sheean on the present situation in Italy. In this article, published in yesterday's Wash- ington Post, the author denounces the treatment accorded an impotent nation now fighting to regain its self-respect. In it he accurately portrays the valuable assistance given the Allies, the many sacrifices made by the Italian people fol- lowing Mussolini’s downfall, their present disillusionment, and strongly urges that Italy be justly returned to the commun- ity of nations as an essentially western and democratic power, not as part of a world of pan-Slavic collectivism. Mr. Sheean shows how the terms of the peace treaty for Italy deprive her of self-de- fense, cripple her with debts for repara- tions to Communist Russia and the Balk- ans, and cut off over 70 percent of the coal so vital for her industrial life. Under the permission granted me, Mr. Speaker, I include Mr. Sheean’s entire Al041 article as it appeared in yesterday's Washington Post: IraLy BEwiLDERED (By Vincent Sheean) Newspaper readers were recently treated to an episode of considerable wry significance when Molotov and Byrnes disagreed about whether or not Italy and Yugoslavia should have motor torpedo boats for shore patrol and similar duties. After some argument it was settled that 6 motor torpedo boats should be allowed to each under the peace treaty. Six motor torpedo boats. This is what is left to Italy out a total of hundreds—the motor torpedo boat having been a particu- larly Italian development. The third largest navy in Europe, the finest submarine en- gines, some of the best of auxiliary craft, all now are reduced to a token force; and the main part of the Italian sea forces have passed into the hands of the Allies, chiefly the British. Of course the disarmament in the air and on the land is just as complete, but somehow the way in which the Italian navy has become war booty for the victors shows more distinctly than any of these other circumstances how the mighty are fallen. For Italy had in 1939 a formidable sea power which, according to most judges, was very nearly equal to the modern fleet of the French, the second in Europe. This was sup- ported upon the solid basis of a merchant marine which was first in the Mediterranean, and augmented by a program for air and sub- marine development which promised to bring the Mussolini dream of “Mare Nostrum” to reality. The British, who themselves used Caproni engines in their submarines and who watched the Italian seaplane development with the most anxious care, were well aware of the bid being made for a Roman sea. The French were even more anxious, and their naval building before the war was occasioned more by the rise of Italian seapower than by any threat from the Germans, Now this has all been swept away as the inevitable result of a war in which Italy made herself the ac- complice of Germany in a gamble upon the world's future. Along with the Italian Navy and merchant marine there has been sacrificed the principal Adriatic naval base, Pola, which goes to Yugoslavia under the treaty, and the prin- cipal Adriatic port, Trieste, which is interna- tionalized under a schedule that is bound to bring endless trouble. These Italian cities will unquestionably be subjected to an in- flux of Yugoslav immigration so as to change the ethnic structure of their population, and it may be expected that most Italians of Venezia Giulia will, in fact, tuke flight. Some 300,000 of such refugees were expected in northern Italy this winter and early spring. Apparently the United States and England expect Italy to be the front line for western democracy against a world of pan-Slavic col- lectivism. This idea is implicit in much of what our men of stute say in public, as well as in their acts and minor gestures reported every day in the papers. But at the very same time they are stripping Italy of every- thing. They are depriving her of self- defense, crippling the country with debts for reparations to Russia and the Balkans, draw- ing a frontier line which ts strategically val- ueless, and cutting off a large part (over 70 percent) of the very little coal which Italy had for its whole industrial life. It is as tf you hired a bodyguard and then bound him hand and foot and left him to starve on your doorstep. The result, it seems to me, is that before very long Italy may pass the mystic line our statesmen have in mind, and instead of being the vanguard of western democracy agains. pan-Slavic collectivism, may become the were of collectivism itself against the est.