APPENDIX TO THE CONGRESSIONAL RECORD Tt took sorne hard effort and personal sac- rifice by the PCA stockholders to attain this financial independence. To increase earnings they agreed to higher interest rates and serv- ice fees on their loans and they dug down into their pockets and bought more stock than was required of them. But they met he challenge, and they begin their self- owned status with around $15,000,000 of capi- tal and reserves. This 1s a sum equal to 25 percent of their highest volume of loans, a ratio which they seek to maintain. The Texans are the first of the 12 pro- duction credit districts to become wholly farmer-owned. By this action they have erased the charge, often made, that these farm credit agencies are subsidized competi- tion. Their reasons, as well as what they have done, are worth noting by the rest of the country. They felt they should carry out their end of the bargain made by Con- gress. And they like to be independent. That attitude should bring a lift to the hearts of a lot of Americans. [From the Saturday Evening Post of January 7, 1950] A FeperaL BENEFICIARY GETS OUT ON ITs OWN A national trend has been reversed by the 36 farm production credit associations in Texas. Instead of leaning on the Govern- ment, they have voluntarily returned all the Federal capital that had been; advanced them. This action is remarkable because the use of this Government capital was free and the users of it were under no pressure to pay it pack. It is even more remarkable because, by returning all of it, the associations became subject to Federal income and other taxes, from which they were exempt as long as they retained any Government capital. Production credit associations are a branch of the Federal Farm Credit Admin- istration. Congress created them in 1933, when short-term credit for farming purposes was difficult to obtain, and provided $120,- 000,000 to enable them to become estab- shed. They are cooperative institutions, operated and controlled by their farmer- stockholders through boards of directors chosen from among themselves. Borrowers are required to take out stock in proportion to thelr loans. Congress specified that the Government capital was eventually to be re- turned and the associations were to become farmer-owned through the purchase of cap- ital and the accumulation of earnings into surplus reserves. But the law was indefi- nite as to when this was to take place. The use of Government capital and their tax-free status frequently led to charges that the PCA’s were a form of subsidized competi- tion with banks and other lending agencies. To this the reply was made that they pro- vided loans that banks were often unable or unwilling to make. Whatever the merits of the contending arguments, the farmers and stockmen who directed the affairs of the Texas PCA'’s decided they wanted no ad- vantages. By last July first, all but $105,- 000 of the $7,885,000 of Government capital which they once held had been returned. The last was paid off immediately after Jan- uary 1. This independent status was not easily at- tained. The stockholders agreed to pay higher interest rates and service fees on their loans in order to increase earnings for the cooperative, and they bought more stock than was required of them. In this way thoy accumulated $15,000,000 in capital and reserves, a sum sufficient to enable them to become self-supporting. These Texas farmers and stockmen were willing to assume the added obligations be- cause they felt they should carry out their end of the agreement and return the tax- payers’ money. One may hope that their ex- ample is a sign of a returning self-reliance in this country. Danger Marks EXTENSION OF REMARKS oF HON. JOHN W. McCORMACK OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Monday, June 5, 1950 Mr. McCORMACK. Mr. Speaker, I am pleased to include in my extension of remarks a splendid address delivered on April 26, 1950, before the Kiwanis Club of Los Angeles, Calif, by Floyd B. Odlum, an outstanding American, whose stirring message of decency and Ameri- canism, as well as sound advice from a man of knowledge of world conditions, should be read by as many persons as Possible. DaNceR Marks Ex-Secretary of the Navy John L. Sullivan wrote me last fall requesting that I make a speech on behalf of the National Conference of Christians and Jews. His letterhead bore on it the following purpose of the organiza- tion: “To promote justice, amity, understanding, and cooperation among Protestants, Catho- lics, and Jews, and to analyze, moderate, and finally eliminate intergroup prejudices which disfigure and distort religious, business, so- cial, and political relations with a view to the establishment of a social order in which the religious ideals of brotherhood and jus- tice shall become the standards of human relationships.” That bylaw sold me immediately. I told Mr. SullivanI would go anywhere.my arthritic bones would permit and speak before any group, whether in high school, on street cor- ner, or in bamquet hall. I am glad he chose Tos Angeles, for, while I earn my bread and butter in the East, my home, my voting resi- dence, is in the desert section of Riverside County, Calif. Iam also glad that a Kiwanis Club luncheon proved to be the forum be- cause I have great respect for your organiza- tion and the effectiveness of its members to analyze what is good for our communities and hence our Nation, and then to translate into action a sound position. When asked the other day for a title for my talk I spontaneously gave it as “Danger Marks,” for I had been thinking about how things are going today in the world and I am disturbed because of serious basic danger marks I see. These basics are all directly contrary to the established objectives of Brotherhood Week and the purposes of the National Conference of Christians and Jews. We are in the middle of a war today. We not only are fighting a war at this very mo- ment, but it is probably the most serious war we have ever faced. Our way of life, which we here in the United States find gen- erally to our liking, is in peril, great peril— yes even our existence itself for a great many o* us is at state. Shortly after VJ-day, Stalin published a new edition of Communist dogma titled “problems of Leninism” and it said among other things: “Tt is inconceivable that the Soviet Repub- lic should continue for a long period of time side by side with imperialistic states. Ulti- mately one or the other must conquer. Meanwhile a number of terrible clashes be- tween the Soviet Republic and the bourgeois states will be inevitable.” In contrast with the above, I read a few days ago in a Los Angeles newspaper an in-~ terview with a returned American visitor from Russia, who said, “They (the Russians) say that capitalist and Communist countries can live in peace without necessarily even doing business with one another,” A4199 The first statement is direct from the horse’s mouth, so to speak. The other could come from the same animal by 2 more cir- cuitous and indirect route, whether the per- son knew it or not. It is representative in any event of one of the techniques of the Russian plan of conquest. At about the time Stalin uttered the threat and forecast just quoted, he and his small group dominated approximately 200,000,000 people. Today they dominate nearer 700,~- 000,000 people. And they are ever on the raove for more workers in their ideological quarries, The United States of America is the mortal enemy of the system that Stalin and his small group of codictators would impose on the world. Our way of life must perish or theirs must, according to their own af- firmations, and I believe them. They are utilizing everything in and out of the books to accomplish our downfall. What is going on is rather lightly called by some a cold war. Strike out the word “cold.” It is coldly planned, true enough, but it is plain unadulterated war to destruction. While keeping an iron ring around themselves so that their workers may not know the truth, the boss dictators are fighting with everything they have in this, the third world war. They shoot when they please. The fourth world war with its outright physical destruction in terrible form, will in my opin-~ ion asssuredly come by attack on us unless we win and win fairly promptly the third world war now on. The arsenal for the Communists in this, the third world war, consists of dcecsit, propaganda, the stirring up of prejudice between race and race and group and group, and the forcing of us in defensive measures to extend ourselves eco~ nomically to the breaking point, and if pos- sible in ways that will be wasteful. Stalin and his associates hope to lead us into de- pression so that out of the dissatisfaction, unrest, and turmoil that would ensue, and which they are now engendering with every means at their command, they may capitalize from within our own ranks, using our own people to conflict by revolutionary process with others of our own and thus save the risks to the Communists of an atomic or hydrogen bomb, guided-missile type of shoot- ing, searing warfare. But they are getting ready for that type of attack too and hope to name the day for its surprise start like the Japanese did at Pearl Harbor. But Pearl Harbor will be peanuts compared to the next surprise strike from. Russia unless we nullify it now. Russia has a land army greater than the combined armies of the United States and all its allies or potential allies. Russia has the world’s largest submarine fleet and is build- ing nrore and more. Russia has an air force that already has strength in nearly all cate- gories larger than our own, and is building more planes at a faster rate than we are. Russia, with the help of the plant and per- sonnel that were taken over in Germany, has the atomic bomb and is well advanced in the fleld of guided missiles. You don’t need to take my word for this. I am quoting on this subject the public statement made in San Francisco last week by Secretary of Air Stuart Symington. I say all these things because I want to arouse you to our real imminent peril. The people in a democracy control our national actions in the last analysis. That means you. It is therefore not good for the people to fail to comprehend the danger marks about them. Democracy can only lve on truth. Dictatorship of the kind we have in Russia has the initiative but can only live behind iron curtains and on lies. We are spending a large portion of our national in- come for defense—about 50 percent of our taxes go that way. It should be spent as wisely as it is energetically. You should know about this and make your views known to others. Wastage should be acrime. Fati-, ure to spend where it counts most in the
44200 war of today and tomorrow rather than along the lines of a Normandy or an Iwo Jima, for wre overmn'c. should be a double ersme. C <1‘ > : * . shore lines no longer count. There is today a frontier only be- tween ideologies. Our front-line trench is the truth—for ourselves and as an Offensive against our enemies. Truth must be known here. We should have an aggressive cam- paign of truth abroad. We should know as much about what gces on Yehind the iron curtain as we bilbecly publish about our own defensive plans. We should carry the meés- sage of our democratic ideology as aggres~ sively and more so than it is being sabotaged today by Russian dictators, If communism is our greatest danger mark then next in line comes home-grown preju- dices and intolerances. I don’t need to tell you that prejudices and intolerances are wrong—you know it. But they are positively dangerous as well. They are the stuff on which the germs of communism and chaos breed and grow. And they are brivs *oc*erea by our enemies every second in .:c a 74. 2 out holiday or sick leave or featherbedding. One cannot legislate a man’s feelings. Man’s inhumanity to man makes countless millions mourn. Consider what the preju- dices of Hitler cost the world. And these in- humane attitudes come from the heart and the mind. Understanding and respect for others must be learned. They are not nat- ural traits. It is easy to contemplate toler- ance benevolently after a good luncheon of today’s sort, but later on I beg of you to think of this objectively and from the stand- point of our own national welfare as well as our own good and happiness as human beings living together in a society. America is still the melting pot for hu- manity as well as the cradle of liberty. Here we have thrown together every race, color, and creed—and out of the composite must come a harmonious whole. It’s not strange that we have had our impacts of tempera- ments and races. Strains of every race and strands of every nation make up the warp and woof of our American tapestry. An Irishman does not think or act like a Scotch- man; or a Pole like an Italian. And in some cases we are hardly a generation away from the motherland; the old customs, legends, and traditions. The result is the so-called minority groups with their pressures. Oliver Wendell Holmes said, “If a man is a minority of one we lock him up”; but the minorities we are talking about are not that kind You and I are parts of some minority or other. That goes for every race and every creed in this country. There is nothing in- herently wrong about being a part of a mi- nority—a view that some of my Republican friends will gladly support. So long as the minorities are trying to live together within the fabric of our chosen pattern of govern- ment and society, they have a right to be tolerantly and judicially heard. When they are banded together to destroy our Govern~ ment they must be rooted out and destroyed. It’s no longer a private fight. We should all get into it—all the other minorities, We sometimes resent these minority pres- sure groups. We should in some cases right- fully blame these minorities who have seized upon civil rights and made them a club for political purposes and by so doing have not only obscured issues but postponed good results. But please remember that here in the con- glomerate of American Hfe the minorities, taken together, make up the majority. And the rights of the majority so defined are paramount. Al Smith in 1942 said, “The thing we have to fear in this country is the influence of the organized minorities, because somehow or other the great majority does not seem to organize. They seem to think they are go- ing to be effective because of their known strength, but they give no expression to it.” Every problem in the field of group relae tions 1s really a problem of individual rela- tions to be individually solved. The germ of intolerance is pretty difficult for one to identify within one’s self. But this can be done. If allowed to run its course intoler- ance can be more destructive than most other diseases combined for it is a psychological disease. Get your feelings toward your fel- low man out in the open for analysis. If we want our rights respected we must see that the rights of others who are living within the framework of our society are respected. If we in America, against our bo¢ersrourd of free institutions and economic w«1) beirg, fail to work out proper patterns of human relations, democracy is indeed lost. Man can this way be proved incapable of govern- ing himself from within. The victories wrung out of two wars in our lifetime will prove fruitless unless we translate into real- rty the ideal of equality and freedom that belong with the word “America.” The cost of discrimination and intolerance in industry and commerce alone in terms of national income is tremendous, some say as much as $30,000,000,000 a year. Discrimi- nation makes for unhappiness, inefficiency, and lower productivity. Human dignity and vision are intangibles of industry. who does not respect the integrity of himself and those about him can be an asset 1o his company. No one who is hurt, angry, or disillusioned is going to develop much in the way of ambition or vision. And we need these qualities and work of the right sort as never before. Businessmen cannot afford the wastage of intolerance and discrimina- tion in their organizations. They must start to eradicate it in the front office. The individual is most important to our society. The rights of a minority are the 3 - of all the people of the United £&. i.. responsibility can be neglected only at your peril. Happily brought up in a Methodist parson- age as I was, and moving about with my preacher father from town to town and meet- ing in these new places communities of Swedes or Poles or English, I never knew what intolerance was. I see good and bad in all as individuals but not as groups or races. I wish we were all that way. As a poy I heard someone recite the following. It stayed with me in substance at least, al- though I don’t know the author and have never seen it in print: “America mine! Aye, brothers, and thine. Thine from Ireland, from Africa’s plains, From the fair lands of Italy, Austria, Spain. Americal Thy very name ripples with music, And rolls like the oceans that surge past the mystical poles. Here on the sod under night’s pall I cry out thank God! For it’s free and for thee and for me. The fairest, the rarest that man ever trod, The dearest, the sweetest twixt the sky and the sod, And it’s mine and it’s thine, thank God!” We have it here—America, with its re- sources, open spaces, opportunity, and free- doms. Let us preserve it for ourselves and our posterity—all of us. Let us do so by treating our fellow Americans as brothers, as & part of one great majority supporting our system and way of life, made up of indi- vidual human beings entitled within this framework to their little differences and per- sonal opinions, even as you and I. Because of the danger marks all around us and the forces trying to engulf us, it is time for us all again, for our mutual benefit, in the language found at the end of our Dec- laration of Independence, to “mutually pledge to each other our lives, our fortunes, and our sacred honor.” oe ee ae In factory or business, no one- APPENDIX TO THE CONGRESSIONAL RECORD Tariff Reductions EXTENSION OF REMARKS OF- HON. ROBERT HALE OF MAINE IN THE HOUSE OF REPRESENTATIVES Monday, June 5, 1950 Mr. HALE. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the following statement: To the Men and Women of 8S. D. Warren Co.: You and I and all the others in the War- ren Co. are facing a very real problem, and because it is a problem that may well develop into a highly dangerous situation, I want to tell you a bit about it, This fall the State Department of our Fed-~ eral Government is holding a meeting in England to reduce the tariff rates on certain foreign products that are imported into this country. The theory is that if we make it easier for foreign: wrocdver a to sell in this country we shall 'a.u . . « balance of trade and close the dollar gap and thereby promote recovery in Europe, Our kind of paper—book paper—is on the list of items that are to be cut in tariff rate, If tariff rates on our kind of paper are cut (and they are very likely to be unless we do something about it), then it will become easicr for foreign paper makers to sell their printing papers in the United States. Now, as a practical matter, this won’t help Europe at all, because Europe needs all of the paper that it can produce with its limited supplies of wood, and it won’t have any paper left to send over to this country. But it will greatly help Canada. Canada has plenty of wood. Canada’s wage rates in the paper industry are about 20 percent less than ours. Canada has devalued the Ca- nadian dollar so that if a Canadian producer sells for 90 cents in this country, he gets a full Canadian dollar in return in his country. If you put all these togethecr—low wages, devalued Canadian dollar, and plenty of wood supplies—you sce we huve a very real threat across the border. Some of you may remember that all tarlift was removed from newsprint in 1913. That move killed the American newsprint indus- try so that today only five or six mills make newsprint in this country. Over 80 percent of the newsprint that is used in the United States is now made in Canada. The same thing could happen to book pa~ per. Our customers would atop buying from us because they could get similar grades made in Canada at a lower price, Of course, the State Department and ECA and the others that are trying to build up Europe say that American industries can shut down, and that perhaps unemploy- ment relief will be forthcoming. But unem- ployment relief is a poor substitute for wages. Moreover, you may be certain that Canada is not lowering her tariffs. The Canadian tariff is so high today that we can't ship paper there. But our State Department wants to make our tariff so low that Canada can ship paper here. They call them recip- rocal agreements, but it’s a one-way strect and there is no reciprocity whatsoever. You can see how dangerous this is. If there were a tariff reduction, Canada, with lower wage rates, could gradually take over the United States book-paper market, as it did the newsprint market, In that case, you nd Tare going to have a tougher and tougher me, I don’t like this and I assume you don't, either. It’s all unnecessary because it won’t help Europe; it will help Canada, who doesn’t need the help, and will hurt us badly. I'm appearing before the Reciprocity Committee in Washington for the whole
APPENDIX TO THE CONGRESSIONAL RECORD paper industry the early part of June, but, frankly, I doubt 1f my arguing, and the arguing of cthers, does much good. More good would come, I think, if a good many of you wrote your Senators and Con- gressmen in Washington and tole them how you felt about this. Lord knows, we don’t want Westbrook and Gardiner to become ghost towns. Let’s tell the lawmakers how we feel. This 1s a pretty c~~y™er*cd subject and I’ve tried to simplify ts t+. ITeould. But if I’ve missed something, or if this isn’t clear, drop me a line or ask Everett Ingalls. In any event, I wanted you to know what we were facing, and the importance of it to all of us. Sincerely, GEORGE OLMSTEaD, Jr., President. May 26, 1950. Spirit of America Meets the Red Flag’s Spirit and Old Glory Talks EXTENSION OF REMARKS oF HON. FRANCIS E. WALTER OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Monday, June 5, 1950 ir. WALTER. Mr. Speaker, under leave to extend my remarks in the Rec- orp, I include the following article by William T. Kerr, Yeadon, Pa., founder and national president of the American Flag Day Association: Spirit or AMERICA Mrzrs trum Rep Frac’s Spirit aND OLD Guory TaLKS—AN AMERI- CAN Parnioric Fantasy (By William T. Kerr, Yeadon, Pa., founder and (since 1898) national president, Ameri- can Flag Day Association) The Spirit of America was returning from @ regular round of visits to American his- torical scenes where our national liberties were saved or established, among them Lex~ ington, where stands the memorial stone bearing these words “Stand your ground; don’t flre unless fired upon, but if they mean to have a war, let it begin here. Captain Parker’; Concord, Ticonderoga, Val- Icy Fuge. Hor last stop was Gettysburg, where the Federal Union and Old Glory ‘were saved, with the words of Abraham Lin~ coln ringing in her ears, “Government of the peoplo, for the people, by the people shall not perish from the earth.” Interested as she always is in that greatest of all melt- ing pots, our American public-school sys- tem, she stopped at one large city school, seging boys and girls of all ages entering, all classes, races, and crecds, many of whose parents came from foreign lands seeking civil and religious liberty and an oppor- tunity to worship God as their own con- science dictated. Waiting she heard united voices singing “My country ‘tis of thee, sweet land of liberty,” and delightedly watched through the windows the upraised arms as together they saluted our Stars and Stripes and heard them in unison re- peat, “I pledge allegiance to the flag of the United States of America and to the country for which it stands, one nation indivisible, with liberty and justice for all.” To another intorested observer the Spirit of America said, “As long as we can maintain and protect from destruction our free nonsectarian American. public-school system, recognizing one God as Father, undominated or con- trolled by any sectarlan group, and they continue to teach loyalty and devotion to our Nation, our flag, and American institu- tions, the Republic 1s safe.” The Spirit of America resumed her journey stopping at Philadelphia and Pittsburgh. It was June 14 and they were celebrating Flag Day in honor of the Birthday of the Siars and Stripes, June 14, 1777, adopted by the Continental Congress, the great Com~ monwealth of Pennsylvania having made Flag Day a legal holiday in 1937. En route west leaving Pittsburgh where the English- speaking civilization was firmly established and Pittsburgh became the “Gateway to the West,” she was surprised and stopped by the sudden appearance of a male figure com- pletely in red. Meeting almost face to face Spirit of America said, “Will you please tell me what all this red means, 1s it some warn- ing, I only know red as stop or warning.” “Well,” said the red figure, “that’s what I am glad to do, I want the whole world to know it for that is my job. Iam a Commu- nist, our color is red, see this fiag, 1t 1s the living red flag of revolution which my com- rades and I have been preaching since Karl Marx days. That red, white and blue rag of yours that I see displayed will disappear, this is not a guess, we Communists are sure to take over this country as the sun shines, then behind our government will stand our red army to enforce our rule. You know of course we are trying to get control of all labor organizations and if we do and no one can work unless they belong to our unions, we will have absolute control of those who create the wealth of the world. Our rule will govern and our red flag will fly.” He said this with a straight face though he must have known that in no other place on earth are people as well taken care of except in isolated instances, or paid as much for their services or have easier working hours, more leisure, greater comfort, and more real freedom of all kinds than here in the United States. Spirit of America smiled at the bravado of the red visitor and said, “Come and visit with me one of our imposing buildings, it is one of our county court houses, where with other public transactions justice is dispensed impartially by judges of the peoples own choice and not by dictators.” In front stood a large monument of justice weighing the scales, in a wide hall near the entrance there floated from a staff a fine silken United States flag with its 48 bright stars and bril~ liant stripes, bright sunlight shining on them, streaming through a window “Admit, won’t you,” said Spirit of America, “That omitting everything else but the view- point of beauty alone, for you and your friends also like the beautiful, that this is one of the most beautiful you have ever seen, You called it a rag because you were ordered to but in your own heart you know it is beautiful as a picture alone, you also know that it represents nearly 145,000,000 Ameri-~ cans, Many of whom came from your own land and are now a part of this Nation by naturalization. If your own people had free press and radio to know the real truth, you and others would know that our Nation saved you from destruction in the late world war and we sent over to your people thou-~ sands upon thousands of millions of dollars to help defend you and in peace after the war stopped continued to do the same to help feed you. ‘Your leaders do not tell you that and make you believe thet they give it to you. I haven’t time to tell you more than we sent $20,000,000,000 overseas to help you and other nations recover and never asked a cent indemnity, but I want our flag to talk to you, so that if your leaders permit you, when you return, you can tell everyone what you saw and heard on this visit, come closer and listen while our flag tells you what she is and represents, listen:” “I am the Stars and Stripes symbol of an indivisible united country, a Nation forever one. A4201 I depict the Pilgrim Fathers and other freedom-seeking exiles, brave pioneers, the wilderness, savages, countless hardships, homes, schools, and churches erected, cities, towns, villages created, a new civilization established. I envisage Lexington, Valley Forge, and Yorktown; Washington, the father of our country; Lincoln, the savior of our Nation; and other patriots who sacrificed all that I might have victory and honor. I recall bugle summons, fife and drum beats, tramping feet, clanking sabers, flash- ing swords, clatter cf horses’ hoofs, rum- bling guns, smoke and noise of battle, in- comparable deeds of heroic men and brave women that can never be forgotten. I symbolize, too, all that 1s above, beyond, outside of and finer than war, for I am the voice of peace. T awake to duty where voices may be silent and betoken achievement in every sphere of usefulness and for humanity. I never went on a selfish mission and wherever I go there is a shrine. I belong to no political party, faction, age, rank, sex, color, or creed. When you salute me I rejoice for then I know you have not forgotten your great privilege of citizenship. I am not for special occasions alone, but a constant living token of inspired service for God and country. When I hear the Star Spangled Banner, your cheers at my display, I know you are singing a psalm of praise expressing your love for our institutions. I am the personification of your Constitu- tion and laws, the voice of every citizen, em- blem of the sovereignty of the people, a pledge of hearts devotion, then beacon light of liberty, and wherever I go on land, on sea, in air, there go the millions who make us the greatest Nation on earth. I have flown proudly through all the years since my birth. Keep me unashamed for I am what you are—nothing more. I am Old Glory, your flag, the only banner in the world’s history which never dropped In defeat. “Protect us by Thy might, great God our king. The last words came as a solemn prayer and the Red visitor seemed transfixed, Amer1- ca’s spirit said, “Carry home, if you will this message of peace and good will, that is what we want for every people. We covet no other nation’s lands and the thousands and thousands of millions of American dollars we have been sending to your people and others have been and are to restore your prosperity and success, with civil and re- ligious freedom.” . Like a flash Red vanished. To Old Glory, America’s spirit said, “Would that you could only send your message into the hearts of the whole wide world. They should know it.” Equality for Women Under Law Defended EXTENSION OF REMARKS HON. PAUL CUNNINGHAM OF IOWA IN THE HOUSE OF REPRESENTATIVES Monday, June 5, 1950 Mr, CUNNINGHAM. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the following article by Stella E. Barker which appeared in the Des Moines Tribune under date of Monday, May 29: EQUALITY FOR WOMEN Unprr Law DEFENDED To the Eprror oF THE TRIBUNE: I was shocked beyond measure at reading the editorial from the Michigan Journalist printed in the May 22 issue of the Tribune.
A4202 Iam trying to be charitable enough to think that Mr. Jim Murray, the author, tried to be funny, but he was very “unfunny.” In my generation I have never seen @ woman cross a mud puddle on a man’s coat, put I have seen our fine, sturdy women (and proudly) carry feed through the mud puddles to livestock on our Iowa farms; I have seen our courageous young women living in trailer camps while their GI husbands finished their delayed education; I have seen middle-aged women leaving their homes to take jobs in order to augment a family income and msure an education to their children. Mr. Murray speaks of beauty. He refers to “Grandmaw’s picture.” My grandmoth- er’s picture showed stooped shoulders and the lines of suffering and privation as a result of pioneering, lack of medical care, improper food and heavy labor. Wasn’t she a good eitizen? And wouldn’t you be willing to give her the dignity of lawful equality instead of classing her, as in some States, in the same category as a child or a moron? Graceful postures, beautiful long hair, soft voices—-Where are Jim Murray’s eyes? Has he ever stood on a university campus and watched our young women, graceful as ga- velles, walking from class to class; or seen the glowing head of hair she so proudly car- ries? And how can he discount the beauty of voices not only of singing stars, but the voices of magnificent speakers~and for women’s equality—as Margaret Chase Smith, Katharine St. George and others in our Halls of Congress, as well as women like Michigan's Hazel Myers, California’s Lester Fulwider, Iowa’s Helen G. Irwin and Mrs. Raymond Sayre, New York’s Pauline Mandigo, Mis- souri’s Margaret Hickey? Some women do drink, smoke, wrestle, and so forth—but do they do those things in greater proportion than men? Why not mame names on the other side of the ledger? The unloosing of the philosophy of kindli- ness, understanding, courage, tolerance, and willingness to accept a just share of political, social, and economic responsibility without the stigma of inequality under the law may well help both men and women to a fuller life in our democracy. As a resident of Des Moines for 20 years, I am experiencing a sense of deep disap- pointment at the Tribune, that it would re- print an editorial like this. It is a far cry from the fine, fair comments that our late beloved Harvy Ingham used to put in his column. He fully believed in the contribu- tion women, as citizens, could make and never failed to say so. Sretia E. Barxur. Des MOornszs. Armed Forces Day Address by Brig. Gen. Arthar G, Trudeau EXTENSION OF REMARKS oF HON. KARL E. MUNDT OF SOUTH DAKOTA IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. MUNDT. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an address delivered on Armed Forces Day, May 20, 1950, at Sioux Falls, 8. Dak., by Brig. Gen. Arthur G. Trudeau, Assistant Com- mandant, Army War College, Fort Leavenworth, Kans. There being no objection, the address was ordered to be printed in the RecorpD, as follows: Mayor Saure, Colonel Renth, fellow mem- bers of the Armed Forces, ladies and gentle- man, it is a very great pleasure to be here today to contribute in a small way to the efforts you have made to set aside this week end with rarticular thought to what the Armed Forces of your country mean to you. In days as fraught with a cold war and portents of impending war as these are, it behooves us to pause in our daily lives to consider from whence we came and whither we are going. To those of you who believe in a Supreme Being, I suggest, also, your frequent prayers that those who guide the destiny of both our own and the opposing forces in the world can find a peaceful solu- tion to our problems. The gap is wide, the enemy is brutal and realistic. The way is very, very difficult. The President of the United States has called upon the Nation for the first time to pay tribute to all the Armed Forces on this specific week end. It represents a departure from previous years when the Army and the Navy and the Air Force each had their own special days set aside. It represents an ad- vance that has been made possible by the unification of the Armed Forces. All the difficulties that may have arisen are rela~ tively small in nature compared to our ac- complishments in bringing the Armed Forces under more unified control. Now we are “teamed for defense.” While planning on the joint level between the services is continuing to improve, we have achieved concrete gains in the way of @ unified Military Air Transport Service and @ unified Military Sea Transport Service. Purchases are being coordinated through the Munitions Board; medical service, through a joint committee; and civilian components and personnel, through joint policy boards. A uniform Career Compensation Act has been. enacted and a unified code of military Jus- tice is well on its way. In the same way that an industry must organize for efficient production and opera- tion, or that labor and agriculture must be organized for the most efficient production and benefits as affect the whole, so also in this constantly changing world must our Armed Forces be organized and integrated to insure complete cooperation and collabo- ration between all elements concerned when the unfortunate business of war is thrust upon the Nation. Only a relatively short time ago, Jules Verne considered encircling the world in 80 days as a major accomplishment, and it was a matter that intrigued all those who read his book. As of today the world has been circled several times in less than 10 days, and in the light of present-day supersonic developments, there is no reason to believe that it will not.be possible to circle the en- tire globe within a matter of 48 hours within a relatively few years. Thus distance no longer means security or protection. In the field of thought communication, whereas Washington had to send a man on horseback for a hard day’s ride from New York to Philadelphia to carry the reports of events during the Revolutionary War, and news from Europe took at least 3 weeks by sailing ship. Today, in a matter of an hour, people can be informed anywhere on this globe of occurrences in any other part of the world. Such speed in thought transference and transportation means increased rapidity, not only in the conduct of our everyday business but, in particular, with respect to our need to be ready and able now to resist aggression on the part of an enemy power who is mobilized and able to operate over vast distances in amazingly short periods of time. It is not a pleasant thought that this should be so, and all of us would like to be APPENDIX TO THE CONGRESSIONAL RECORD able to live our lives in a normal manner among our relatives, friends, and contempo- raries without the constant possibility or threat of war hanging over our heads or without enduring the cold war that exists today. Nevertheless, such conditions are not possible today, and every single Ameri- can fully realizes that fact. The line of de- marcation between war and peace has dis- appeared under the Marxian theory of con- quest. Let us not be deceived on this point. Furthermore, the advent of the atom bomb, guided missiles and other modern develop- ments, together with the vastly increased range of the airplane, has endangered the security of people everywhere, even in the interior of our great country. Fate has thrust upon us @ certain role whether we like it or not. The crescendo of conflicting interests, played on the drums of destiny in this world of blinding speed and atomic power, finds us as one of two focal points around which all the forces on this earth are rallying. The verdict of the fu- ture—yes, the very continuance of the right to enjoy the moral, social, economic, and po- litical values of our western civilization— will denend on our courage and astuteness in mec? this challenge by the Marxian the- ory of dialectic materialism called commu- nism. History, like a fascinatine woman, only bestows her favors on tbe brave and the strong, never on the bashful or weak, There must be no doubt as to our determi- nation not only to contain but to destroy the virus of communism. Iam not sure that all Americans fully ap- preciate the nature of the threat that faces us. You undoubtedly realize that the man- power of the only nation on carth having the potential for aggression against us far our- numbers our own. I am sure that you also know that the present state of the already mobilized hostile army, navy, and air force is such that in the initial months, if not years, of a war, we would br severely pressed at every turn. While we boast of our great industrial capacity, the fact is that as of to- day the Communist production of war ma- terials far outstrips our own. As a matter of fact, in certain critical items, she is produc- ing more each month than the total of such items we have in the hands of our troops. While our over-all industrial capacity far exceeds any other nation’s today, we must realize that the great proportion of our pro. duction is devoted to capitul goods and to meet everyday civilian needs. The Commu- nist zone, with their low standards and their regimentation and slave labor, has found no need to consider the comforts cl its people, and nearly all of its very consideta'ye avd rapidly increasing production is devoted to turning out the tools of war. When these facts are considered, together with the mo- bilized force that is ready for action at any time, then the nature of the threat to Ameri- ca, Europe, and the world becomes more apparent. I have just returned from 2 years in Ger- many where I had the privilege of command. ing the First Constabulary Brigade, one of two such armored units in the United States zone of Germany. The other major tactical element was the First Infantry Division, of long and glorious fame. These units, sup- ported by an almost negligible tactical Air Force, constitute all the combat troops be- tween the eastern zonal border and the west. Of course, the British and the French in their respective zones of Germany have some counterpart of these small American forces, but the total force involved is entirely in- adequate to do more than tempcrarily delay the advance of the masses of enemy troops, generously supported by tactical air forces that are available now in eastern Germany. The recognition of this serious situation in which the likely aggressor has the capa- bility to push us hack to the Atlantic when- ever it pleases is, of course, one of the rea-
APPENDIX TO THE CONGRESSIONAL RECORD sons why the implementation of the North Atlantic Pact and the Marshall plan are of such great importance. The nations of west- ern Europe have done much with American help to restore some semblance of their pre= war status and development; but until they are in a position where they have at least an even chance of resisting a hostile thrust from the east, they cannot, in confidence and with some hope for security, advance much farther on the road to stability and progress. The instability that has appeared in some western Etiropean governments is just an. other indication of the uncertainty the peo- ple of those nations have felt as to which way to turn in order to go forward to peace and security. It 1s not a pleasant thought to realize that in a world where we like to think our civili- gation 1s advanced, such conditions can exist. Nevertheless, our civilization is no further advanced or secure than the most backward er recalcitrant of the powers that have the force to destroy 1t; and that force definitely exists today. Only when you can observe at close hand the conditions under which the peoples subjected to the Communist heel have to live, can you fully appreciate what it would mean to have America reduced to the status of a secondary power at best, or at worst, snother colony under the hammer and sickle. Such occurrences are not impossible, and it is with a view to preventing them that we must be alert and understanding as to the national veduiremens for security. In this cotnec..cn, 1113 important to state that while the strength of our arms is very important, there are other factors of great importance, too. Our national security rests on our moral, social, cconomic, political, and militar - wt “—. « the strength of all other ev or ree cs sympathetic to our cause. While we have given generously of our bounty in food, medical supplies and capital goods to other less fortunate nations—yes, even to former enemies, the No. 1 need in the west i* *9 mene fear with courage, hope with ae ure oe . vacillatie ar “ts coerce mise with the ultimate of « Ar aie nal realism. To do this, a firm ml wy opeaccte is one of the prerequisites. Then with con- fidence in our cause and in our course we can go forward. No team ever won a game by merely hoping to avoid defeat. Many of you here are descendant from an~ cestors who held this western frontier agninst the ravages of the Sioux and other warlike tribes over a period of many years. You know the storles of massacres and depre- dations curing our westward push in the himeteenth century. I say to you that there is another vast and vital frontier wherever the prongs of communism infect the peoples of the world. One segment of this frontier today is in the United States zone of Ger~ many, where 100,000 American troops and probably another 150,000 American men, women, and children representing South Da- kota and the other 47 States and Territories, stand guard as an outpost against a threat that would make an Indian attack seem in- nocuous and gentle. You cannot divorce yourselves from a sense of real responsibility in this situation unless you wish again to feel the guilt that we Americans knew after Pearl Harbor and Bataan. The National Government recognizes the seriousness of devoting too much of our na- tional income and wealth to the Armed Forces. We are all hopeful that peace can be established, and every effort must be bent to that end. Nevertheless, there is-a mini- mum standard below which our defensive capability must not fall, without the most dire threat to the future of the Nation. All services are being required to keep their reg- ular forces to a minimum since, by virtue of the fact that they must be employed 365 days a year, they are the most costly. At the same time, more and more dependence is being placed on the increased readiness of our National Guard and reserve forces. The officers and men of these forces have a more serious responsibility facing them than may, at times, be apparent. We need the support of the entire population to provide addi- tional officers and men for these forces and the sympathetic understanding and support of the entire population as to their purpose and their importance. The seriousness of the present situation 1s such that all Amer-~ icans are more alert than ever before, and we must not be lulled into the sense of false security of olden days where minute men rose overnight to save the country. Our best estimate today on reaching wartime predictive capacity is a minimum of 18 210: 25 ind it takes tanks and planes and ships to fight a modern war, Courage, while indispensible, is entirely inadequate. We must not fall into the category, phrased so aptly by that great ally and Englishman, Winston Churchill: “God and the soldier I adore, In times of danger, but not before. The danger passed and all things righted, God is forgot and the soldier 1s slighted.” The moral of this little poem should be clear, and the soldier means all of those who wear the uniform of this country and the industry and labor to support them in the field. And so I feel that I can tell you this by way of assurance, that your Department of Defense stand is neither self-satisfied nor co: ce. It feels deeply the compelling © . '*.97 : which rests upon it for making cc vir if the means are not provided to maintain a balanced capacity in these times of peril, it will only be because the Nation is unwilling rather than uninformed. Under these conclusions we must maintain trim, highly mobile, and efficient forces which must not be allowed to fall below a safe minimum, and a superior industrial posture capable of immediate explosive expansion. For should overt aggression come, it will be swift beyond measure. There will be no com- fortable cushion of time again, in which to make ready; no safe opportunity to marshal a@ latent strength, as in the last two con- flicts. I have tried to present to you in a brief way the reasons I believe the readiness of adequate Armed Forces of the Nation is more important than ever before and why we need your understanding and support. It is also fitting at this time, however, that we pay tribute to all those of the Armed Forces of this country who have passed on, whether on the battlefield or with the passage of time. It would be hard to determine how many have served their country in war, from the founding of the Republic, through the days of Custer and Reno in this Territory, and on down to the soldier, sailor and alr~ man of today who is also guarding a fron- tier. The contribution of these men and women, all citizens—all from the body pol- itic, is quite apparent in the greatness of our country today. While our country has been made progressively great for 175 years by the courage, intelligence and initiative of all of its citizens, that progress could have been terminated on any one of the several occa-~ sions during which we have found ourselves engaged in major conflicts involving the life or death of the Nation. Wars are the crises in the lives of nations. With courage and some blood we have been able to survive all the past operations. With vigilance, fortitude, a reasonable degree of preparedness and faith in God, we can hope to survive any the future may hold. That is the greatest challenge to the American people today, A4203 Decisions by the Supreme Court— Newspaper Comment EXTENSION OF REMARKS HON. LEVERETT SALTONSTALL OF MASSACHUSETTS IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. SALTONSTALL. Mr. President, I ask unanimous consent to have printed in the Appendix of the Rrecorp an article entitled “An Historic Day in the Supreme Court,” by Arthur Krock, which appears this day in the New York Times. I also ask to have printed an editorial entitled “Separate But Equal,” also from the New York Times of today. There being no objection, the article, and editorial were ordered to be printed in the Recorp, as follows: In tHE NatTion—An Historic Day IN THE SuPREME Court (By Arthur Krock) WasHINGToNn, June 5.—The hitherto easy- going observance of the “separate but equal” doctrine, which the Supreme Court in 1896 (Plessy v. Ferguson) decreed as satisfying the “equal protection” mandate of the four- teenth amendment, and which the States and interstate carriers have relied on to legalize racial segregation in schools and transportation facilities, was a mass of tat~ ters today after the Court read three deci- sions. Iv still exists in the realm of judicial theory; the Chief Justice said 1t need not be reexamined. But the net of the decisions war *h* “cove must be as CeIn ely vre ved as “ecit'. car tests whica obviousiy will be difficult if not impossible for the States to meet, as Texas and Oklahoma failed to do today. The Solicitor General, Philip B. Perlman, did not induce the Court to reverse Plessy and say that “separate but equal” facilities are repugnant to the Constitution because the very fact of segregating colored from white is a denial of colored equality under the laws. But he got the substance of what he was after, and unanimously. From now on a community must be able 10 prove beyond question that a segregated complainant re- ceives educational services equivalent to those rendered the racial majority. And to do that will impose crushing financial bur- dens on the community. Hence, while Mr. Perlman did not “get the Plessy doctrine specifically overruled, he got the Supreme Court to put a price tag on it which may have the same effect in numerous localities. And in the field of interstate transportation the Department of Justice completely carried its point—that segrega- tion in dining cars, etc., imposes an “undue disadvantage” on colored persons, sometimes on white also, that clearly violates the Con- stitution. In taking this position, which the Court sustained, the Department successfully attacked the finding of another arm of Gov- ernment—the Interstate Commerce Commis- sion—that this type of segregation was with- in the law. MR. VINSON SETS A LIMIT As in the case in which the Chief Justice declared for the Court that restrictive realty covenants, being repugnant to the law, were not by it enforceable, Mr. Vinson in the col- lege segregation cases from Texas and Okla- homa did not attempt to extend legal re- strictions to individual preferences in hu- man association. In the covenants decision
‘A4204 be said it was not illegal for a set of private persons to agree among themselves that they would not sell or rent their properties to members of specified groups, but they could not ask the courts to require any of their number to keep the compact. In deciding today the complaint of McLaurin, the Negro student at the Graduate School of the Uni- versity of Oklahoma, the Chief Justice wrote: “For some time the section of the class- room in which [McLaurin] sat was sur- rounded by a rail on which there was a sign stating ‘reserved for colored,’ but these have been removed. He 1s now assigned to a seat in the classroom specified for colored stu- dents; he is assigned to a table in the library on the main floor, and he 1s permitted to eat at the same time in the cafeteria as other students, although here again he is assigned to a separate table. “These restrictions signify that the State * * * ‘sets McLaurin apart from the other students. The result 1s that [he] is handi- capped in his pursuit of effective graduate instruction [because these restrictions] im~ pair and inhibit his ability to study, to en- gage in discussions, and exchange views with other students * * *, State-imposed re~ strictions which produce such inequalities cannot be sustained. “It may be argued that [he] will be in no better position when these restrictions are removed, for he may still bu set apart by his fellow-students. This we think irrelevant. There is a * * * constitutional differ- ence between restrictions imposed by the State * * * and the refusal of individu- als to commingle when the State presents no such bar.” FACTS WEIGHED MINUTELY In the case from Texas, the Negro peti- tioner, Sweatt, was not, like McLaurin, admitted to the graduate school reserved for whites. A separate law school finally was arranged for his use. But the Chief Justice today for the Court said ‘‘we cannot conclude that the education offered [Sweatt] is sub- stantially equal to that which he would re- ceive if admitted to the University of Texas Law School,” and “we hold that the equal protection clause of the Fourteenth Amend- ment requires that [Sweatt] be admitted” to the latter. The facts on which the Supreme Court de- cided that McLaurin and Sweatt as students were not receiving the equality of oppor- tunity assured by the Fourteenth Amend- ment, and that therefore the partial segre- gation of the one and the full segregation of the other must be abandoned, were so minutely inspected that litigation inevitably will follow, based on conditions in segre~ gated primary and secondary public schools and colleges. The Court made it crystal clear today that it will sympathetically en- tertain any plea of inequality. In the field of lower education, especially in the secondary public schools, the social bases of segregation are much broader and deeper than in the colleges. If and when the Supreme Court applies today’s formula and solution to these, where it finds segre- gated facilities unequal, the real test of com- munity acceptance will come. SEPARATE BUT EQUAL The Supreme Court did not overturn the “separate but equal” doctrine in the three decisions involving segregation handed down yesterday. What the Court did seem to be saying in one opinion was that Negroes en- tering the Southern Railway Co.’s dining cars did not in fact receive facilities equal to those given white travelers. It was also true, as Justice Burton pointed out, that the rail- Wway’s rules “impose a like deprivation upon white passengers,” but it was not a white passenger who complained, In two other oninions, involving the law schools of the Universities of Texas and Okla- homa, the finding was that Negro students were not offered, as Chief Justice Vinson said in the Texas case, a “legal education equiva- lent to that offered by the State to students of other races.” The Court upheld the Ne- gro’s right to equality of treatment. In practice, the full exercise of this right might mean an end to segregation. But this was not what the Court said. Decisions such as this have a compelling power on the individuals, corporations, or public agencies involved in them. They will not of themselves change folkways overnight. No matter what rules the Southern Railway Co. or any other southern railroad may adopt, some kind of segregation will doubtless persist on dining cars running into the Deep South. It will persist, too, in southern uni- versities. An individual belonging to a rec- ognizable minority lacking political power may easily be denied privileges to which he is legally entitled. There are, sad to say, more or less subtle ways of achieving this. The Supreme Court has stated what the law and the Constitution are as of this pres- ent date. It is good to have this statement made. This Republic cannot recognize de- grees of citizenship. But as long as consid~- erable numbers of people, including the ma- jority or dominant elements in whole com- munities, think differently, we cannot expect the millennium. The situation calls for a period of education—how long a period no one can say. Meanwhile, it is for the more liberal elements in the Southern States to see to it as well as they can that the broad- ening out of human rights is accomplished with as little friction as possible. There will need to be continued cooperation by the enlightened leaders of both races. Diversion of Additional Water From the Niagara River for Power Purposes EXTENSION OF REMARKS oF HON. HERBERT H. LEHMAN OF NEW YORK IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. LEHMAN. Mr. President, I have recently received a copy of a letter ad- dressed to the distinguished chairman of the Foreign Relations Committee by Mr. Earle J. Machold, president of the Niagara Mohawk Power Corp. The subject of that letter is the pend- ing Niagara Treaty whose approval Mr. Machold unreservedly advocates. The support of this great corporation for the Niagara Treaty was expressed in such forward-looking terms that I issued a statement praising Mr. Machold’s atti- tude. I join with him in urging imme- diate action of the treaty. I have obtained the kind permission of the chairman of the Foreign Relations Committee to present Mr. Machold’s let- ter for insertion in the Appendix of the ReEcorp. I ask unanimous consent that this letter be so inserted. I also ask unanimous consent to in- sert into the Appendix of the Recorp the statement I issued in comment upon this letter, APPENDIX TO THE CONGRESSIONAL RECORD There being no objection, the letter and statement were ordered to be printed in the Recorp, as follows: Nracara MoHawk Power Corp., May 23, 1950. Hon. Tom ConNALLY, Chairman, Committee on Foreign Relations, United States Senate Office Building, Washington, D.C. Dear Siz: Your committee presently has pending before it for consideration and recommendations the treaty recently ne- gotiated by representatives of the Govern- ment of the United States and representa- tives of the Government of the Dominion of Cenada to permit diversion of additional water from the Niagara River for power pur- poses. As chairman of the Committee on Foreign Relations, you may find it helpful in your deliberations, to have a statement of the policy and position of the Niagara Mohawk Power Corp. (which owns the Niagara Falls Power Co.) with respect to the proposed treaty. The Niagara Falls Power Co. is presently the only company or organization, public or private, which utilizes the waters of the Niagara River for power purposes on the American side of the river It (the Niagara Falls Power Co.) holds a 50-year license from the Federal Power Commission, issued in 1921 (license No. 1) under the prowtrien~ 3? the Federal Water Power Act, +. : the diversion of 19,725 cubic fee. piv cetona of water of the Niagara River for power pur- poses which, together with 275 cubic feet per second covered by temporary authoriza- tion granted in 1928, is utilized, under the terms of the license, in its Schoellkopf Sta- tion to develop 365,000 kilowatts of electric power. It also presently utilizes 12,500 cubic feet per second of water from the Niagara River under temporary permits, making use of its Adams Station, which develops about 80,000 kilowatts of electric power. In addl- tion, the Canadian Niagara Power Co., Ltd., a@ subsidiary of the Niagara Falls Power Co., presently utilizes approximately 10,600 cubic feet per second of the waters of the Niagara River on the Canadian side to develop 80,000 kilowatts of electric power, 35,063 kilowatts of which are exported to the United States pursuant to a firm contract with the Niagara Mohawk Power Corp. At the time the proposed treaty was nego- tiated, representatives of the two govern- ments had available for their consideration the September 1949 report of the Bureau of Power, Federal Power Commission, entitled “Possibilities for Redevelopment of Niagara Falls for Power.” This report sets forth in detail the recommendations of the Bureau for ultimate and complete utilization of the wa- ters of the Niagara River for power purposes consistent with the preservation of the scenic beauty of the Falls in the Niagara River. Representatives of Niagara Mohawk Power Corp. cooperated with engineers of the Fed- eral Power Commission and of the Power Au- thority of the State of New York in prepar- ing that report. All of the participants are jn accord concerning the engineering rec~ ommendations contained therein, with the exception of certain minor details which sre not important here. The study from which the above-men- tioned report of the Bureau of Power ema~ nated actually was suggested by the writer to the Federal Power Commission and to the Power Authority of the State of New York early in the year 1947. After conferring with both agencies it was agreed that representa- tives of the two government agencies and of our company would endeavor to agree, from an engineering viewpoint, upon the manner of best utilizing additional waters of the Niagara River for power purposes, when and
APPENDIX TO THE CONGRESSIONAL RECORD if the International Boundary Waters Treaty of 1909 should be revised to permit addi- tional diversion, The report itself acknowledges apprecia- tion of the cooperation and assistance given by Mr. Edwin S. Bundy, vice president and chief enginecr of Niagara Mohawk Power Corp., in its preparation. As the Eureau of Power report indicates, we advised the Federal Power Commission that, in the event additional diversions should be authorized by treaty between the two countries, this company desired to use such additional water for the development of electric power. We are prepared to finance any such de- velopment and are fully able to do so. The Niagara Mohawk Power Corp. renders service to about 880,000 electric customers in an area of about 21,000 square miles, hav- ing a population of approximately 2,800,000 persons, and extending from Albany and Hudson on the east to Buffalo and the Nia- gara frontier on the west, and north to and including Odgensburg and Massena on the St. Lawrence River. We will have con- structed, since the end of the war, to and including 1952, additional electric generat- ing capacity of 700,000 kilowatts (mostly steam) to meet the expanding demands of the farms, homes, commercial enterprises, and industry of this territory. The entire Niagara Mohawk Power Corp. system is interconnected by a network of high voltage electric transmission facilities. It also has high voltage transmission facili- ties interconnected with the systems in New England on the east; New York City, New Jersey, and Pennsylvania on the south; and with the system of the Hydro-Electric Power Commission of Ontario on the west and north, While recent widely publicized estimates of the need for additional electric-power development in the territory may be on the extravagant side, our own studies indicate that the Niagara Mohawk Power Corp. sys- tem must provide a minimum of 850,000 kilo- watts of new generating capacity between 1952 and 1960 to provide for expected in- crease in demand for electric service in its territory alone. If you attribute the same rate of growth to the other systems rerving the public in the State of New York, it seems certain that by 1960 the 1,132,000 kilowatts of additional generating capacity which will be made available by the proposed additional diversion of the waters of the Niagara River for power purposes will be utilized within the State of New York and, as a matter of fact, can be utilized in the system of Niagara Mohawk Power Corp. alone. Electricity has contributed importantly to @ better way of life and to the standard of living in this country. Dependable electric service has become a vital necessity to mod- ern society. The availability and depend- ability of such service at the lowest possible price consistent with sound economics has become a matter of social as well as eco- nomic consideration and concern. The furnishing of abundant, reliable, and low-priced electric energy to the people in the territory which we serve is one way we contribute to greater enjoyment of modern, comfortable living conditions and to the fur- ther advantageous use of electric service in rural and farm areas. Almost 100 percent of the farms in the territory of Niagara Mohawk Power Corp. now are taking our service or have it available to them, and by the end of this year I expect to be able to state that electricity is avail- able to all of the farms in our service area, Much publicity has been given in recent months to the average rate per kilowatt-hour paid for electric service by domestic con- sumers in New York State. The New York State power authority reported the 1948 av- XCVI—App.——265 erage use of electricity by domestic con- sumers in the State of New York to be 1,218 kilowatt-hours and the average cost to be 3.81 cents per kilowatt-hour. To set the record straight, I want to record that in the Niagara Mohawk system in 1949 the average cost for domestic consumption was 2.61 cents per kilowatt-hour (2.66 cents in 1948) and for farm use was 2.20 cents per kilowatt-hour (2.30 cents in 1948). The average use in 1949 for domestic consumption was 1,691 kilowatt- hours (1,623 in 1948) and for farm consump- tion 8,553 kilowatt-hours (38,148 in 1948). This use will be greater and the average cost less in 1950 due in part to a rate reduction made effective on May 1, 1950. I have related these facts in order to in- form you briefly of some of the circumstances and consideration, which lead us to be whole~ heartedly in favor of the confirmation of the treaty between the United States and Canada authorizing further permanent diversion of waters of the Niagara River for power pur- poses, The rapid growth in demand for electric service in the State of New York leads us to believe that additional substantial steam electric generating capacity will be required in the years ahead, even though all avail- able hydroelectric power resources are fully utilized. We are confident of further industrial ex- pansion in the State of New York, and that domestic, farm and commercial customers will increase in numbers and in annual use of electric service. Greater use of electric energy, and its utilization for the perform- ance of tasks to which it is not now applied, will contribute substantially to our expand- ing economy. If the electric capacity and energy to be derived from the additional diversion of waters of the Niagara River are not made available, the companies now rendering elec- tric service in New York State will have to provide other production facilities to meet the growing demands for electric service. ‘We urge you to give favorable considera- tion to the proposed treaty. In the event of its approval by the Senate of the United States, we expect to ask the Federal Power Commission to grant Niagara Mohawk Power Corp. a license for the development of electric energy through the utilization of the additional waters so authorized to be divert- ed for power purposes. There are no considerations of navigation, reclamation, flood control or irrigation in- volved in the proposed additional diversion of waters of the Niagara River. Here is one instance where the problem is confined to the naked question of use of waters of a stream for power purposes alone. By reason of its constant study and ex- perience in the use of the waters of this very river for power purposes for over 50 years, Niagara Mohawk Power Corp. has the know- how to make this development and we are prepared to undertake it without the use of public funds. In addition, we estimate that the private corporation making this development would pay approximately $23,000,000 annually in Federal, State and local taxes, divided as follows: Federal. i. o- enn ene $9, 250, 000 State_...._. ---. 4,800, 000 Local. ---.-- een ene 9, 450, 000 The difference between the estimated cost of electric energy from a public as com- pared to a private development, as set forth in the report of the Bureau of Power above referred to, its primarily attributable to the estimated taxes to be paid in the event of development by a private company, and to a differential in money costs. That report makes no allowances in lieu of taxes in the event of public development and financing. A4205 I do not wish to be understood as favoring confirmation of the proposed Treaty only upon the assumption that Niagara Mohawk Power Corp. will be authorized to utilize the additional waters to be diverted for produc- tion of hydro-electric power, The demand for electric service in the Niagara Mohawk Power Corp. territory, and in the State of New York will, in our opin-~ ion, increase so rapidly in the years to come that utilization of this natural resource for power purposes is imperative because of the economy in the cost of generating hydro- electric power from that source. The Niagara Mohawk Power Corp. hopes that it will be permitted to construct and operate the facilities to utilize, for power purposes, the additional waters of the Niagara River proposed to be diverted. Having confidence in the fairness of any governmental agency or agencies that may be concerned with the construction or opera- tion of additional hydro-electric production, facilities for utilizing the additional waters of the Niagara River, we feel certain that some fair method of cooperation and mutu- ally satisfactory policy can be arrived at, in the event our company is not authorized to undertake the additional development, The private utility companies now render-= ing electric service in New York State (their consumers, employees and stockholders) should be participants in the effort to utilize the full potentialities of the power resources of the Niagara River in a manner consistent with the best interest of the public and without jeopardy to the great scenic spec- tacle at Niagara Falls. Very truly yours, Nracara MoHAWK Power Corp., By Earre J. MacHoup, President. JUNE 2, 1950. Mr. Earle J. Machold, president of the Niagara Mohawk Power Corp., has made avail- able to me a copy of the letter addressed by him to Chairman Connatty of the Sen- ate Foreign Relations Committee. I am very favorably impressed by the foward- looking attitude shown by the Niagara Mo- hawk Power Corp. in regard to the pending Niagara treaty. I am very pleased to know that Mr. Machold states unreservedly his support of the pending treaty regardless of whether his corporation or any other private corporation is given the right to develop the power which will be provided under the terms of the pending treaty. I am also gratified to read that Mr. Machold has every confidence as I do that some fair measure of cooperation and mutually satisfactory policy can be arrived at between the Niagara Mohawk Power Corp. and whatever other entity is given the responsibility for de- veloping the new power source. I am, of course, unalterably committed to the development of this power as a public resource by public agencies since I do not believe that this resource which belongs to all the people of New York and of the United States as is firmly established by law and by court interpretatlon—should be diverted to private corporations with consequent profits até the expense of the consumers. Neverthe- less, I am ready to let the Congress and the appropriate governmental agencies make this decision and, with Mr. Machold, I urge that the Niagara treaty should be approved with- out delay. I do not agree with Mr. Machold that the forecasts of New York power needs falls on the extravagant side. Experience has shown that all such forecasts in the past have been on the conservative side. Not only must the resources of the Niagara but also those of the St. Lawrence and every other possible source of hydroelectric power potential in the Northeast be developed at the earliest possible time.
A4206 Origin of the Name “Washington” EXTENSION OF REMARKS HON. ELBERT D. THOMAS OF UTAH IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. THOMAS of Utah. Myr. Presi- dent, I ask unanimous consent to have inserted in the Appendix of the Recorp a communication which appeared in the New York Herald Tribune signed by Eric Underwood, of London, England. It is always refreshing to note the interest which foreigners have in our George Washington. There being no objection, the letter was ordered to be printed in the Rrcorp, as follows: Tux First WaSHINGTON—AN APPEAL TO SAVE ORICINAL Homes oF Presipant’s ENGLISH AN-~ CESTORS ON BANKS OF THE WEAR Near Dur-~ HAM To the New York Herald Tribune: In this year in which the city of Wash~- ington celebrates the one hundred and fiftieth anniversary of its foundation, an Englishman will, I hope, be excused from reminding your readers of the origin of the name of the Capital of your great Nation. In a mining district of a remote part of England on the banks of the River Wear a few miles from the city of Durham is a small village the name of which is first recorded at Wesyntone in a Saxon charter dated A. D. 973. In the days when men spelt as they pleased the name is found in various forms, but as early as A. D. 1311, one William acquired the village of Washington, exchanging for it a neighboring hamlet which he released to the bishop of Durham for a “free rent of 4 pounds” and the service of “attending the bishop’s great hunt with two greyhounds.” About this time surnames were coming in, and William took the name William De Washington. He was the first man in the world to bear the name of Washington and the first definitely krown ancestor of the fist President. For some 200 years the Washingtons lived in this village where may be seen the Saxon font in which they were baptized and the foundations of the house in which they lived. In A. D. 1376 they sold the property. The parchment recording the transaction and bearing 4 leaden seal on which are impressed the three stars and two stripes which, with an eagle as crest, had been adopted before this as the armorial bearings of the Wash- ington family, is shown at Durham Cathe- dral. The first distinguished member of the family was John Washington, Prior of Dur- ham of 1416-46, who built the cathedral cloisters. The present dean of Durham has written the following lines on the link be- tween Washington, England, and Washing- ton, D, C.: “Wind that carrieth random seed Little {t careth and hath no heed Whence it cometh or whither blown Nor of the crop thereafter sown— If it be corn or idle weed. “Over a thousand leagues of sea, Rich in promise of things to be, From a Durham village the seed was blown And in far Virginian flelds was sown— Little seed of a mighty tree. “Proud Mount Vernon, daintily set On her rolling river, may well forget The story told of a far-off day And an English county far away— But the old pit village remembers yet. “Washington, heir to a noble name, Knowest thou whence thy lineage came? Yet great Potomac and little Wear Are linked in a memory both hold dear, Linked in a heritage of fame. “winds of God, is it al unknowing, Careless alike of seed and sowing, Careless of human hopes and fears, That ye sweep icly across the years Winds of destiny, blindly blowing?” After the departure of the Washingtons the original manor house fell into decay and was rebuilt in 1618. It is today again in a dilapidated condition but not beyond resto- ration. It occurs to me that the preserva- tion of the earliest place to bear the name of Washington and which still bears the name, the house of the first man named Washing- ton and the residence of the Washingtons for two centuries, is a matter of at least as much interest to the citizens of the United States as to Englishmen. I would like to suggest that a committee of outstanding men and women of both countries should be formed to consider the future of this house and whether it would be appropriate that it should be restored and coutred pe a museum and shrine of the Los s.- tre: ue > peoples. Eric UNDERWOOD. New Yoru, March 11, 1950. After Thorough and Detailed Study, the Air Force Concluded That To Move Watsen Laboratories From Eatontown to Griffiss Air Base at Rome Is in the Best Interests of National Economy and Defense—Why Not Let Them Avail Themselves of the $36,000,000 Invest- ed and Reduce Annual Operating Costs by $1,000,000? EXTENSION OF REMARKS oF HON. L. GARY CLEMENTE OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Tuesday, June 6, 1950 Mr. CLEMENTE. Mr. Speaker, there has been a lot of shadow boxing done with respect to appropriations and the economy effected by the so-called one- package bill. This is particularly true as to the recommendations made to the Committee of the Whole with respect to the 10 percent cut in appropriation and the amendment providing that 1 va- cancy in every 10 shall be filled. This is going to require a whole heap of ex- planation in the coming campaign. Mr. Speaker, aS a member of the Armed Services Committee, I for one cannot understand why, after the hear- ings were held and the subcommittee re- port rendered which so fully stressed the need for transfer of the Watson Labor- atories, action was taken to strike this from S. 2440. This is an item about which we are going to hear a great deal APPENDIX TO THE CONGRESSIONAL RECORD spoken in the coming campaign. In fact, unless correction is made with re- spect to this matter before November, the shadow boxing which has taken place with respect to the consolidation of elec- tronic research laboratories 1s going to become the subject of discussion that might easily decide some several seats in this House in the next session of the Congress. I am referring particularly to the re- pudiation of the fact-finding by the spe- cial subcommittee of the House Armed Services Committee which involved the eventual transfer of the Watson Labora- tories from their present location to some central location of a more permanent na- ture. Mr. Speaker, they who have arbitrar- jly passed up the inestimable benefits which would have accrued to the Na- tion’s defenses as well as that which would have resulted from the increased efficiency and economy effected by the consolidation of the electronic research centers are merely paying lip-service to the economy drive which this House is presumed to have under way. There is no disputing the fact that this Congress would have saved practically $1,600,000 a year had we had the courage and the stick-to-it-tive-ness to have fol- lowed the recommendations made by the military personnel and supported by the hearings held by a subcommittee of the Armed Services Committee that looked ie every phase and angle of this ques- ion. Mr. Speaker, it is well to remember that the proposal to consolidate at some one central point all electronic research-~ es applicable to the operations of our Air Forces was instituted immediately after VdJ-day in 1945. It was instituted by the then Secretary of War, Robert W. Patter- son, whose splendid record for achieving economy and efficiency in his Department is a thing of which American people everywhere are justifiably proud. Mr. Speaker, this is a matter altogether of concern to the Department of the Air Force. Insofar as they are concerned, it involves merely the elimination of one in- stallation, with a view to increasing econ- omy and efficiency. When queried with respect to this change, the Honorable Louis Johnson said that it was not pri- marily a matter of the Department of De- fense, it was an Air Force matter, and of a certainty it had his tacit approval in- asmuch as it meant both an increase in national security and a savings to the American taxpayer. The United States Department of the Air Force as we know it now was not then in existence. It was stilla mere arm of the United States Army, so that the studies projected with respect to the consolidation of electronic research cen- ters was a matter of investigation by the United States Army itself. Two years of incursive and intimate study was made of that question which was begun in September of 1945. It was not until May 1947 that a decision was reached that in order to achieve a maxi- mum of economy and efficilency—com- mensurate with costs—that the elec-
APPENDIX TO THE CONGRESSIONAL RECORD tronic center should be assembled at on Air Force Base located at Rome, During the intervening period various activities were conducted which aimed at perfecting the move, which in Novem- ber of 1949, or four years subsequent to the time it was initiated, resulted in a directive to effect the physical transfer of the so-called Watson Laboratories and its personnel from Eatontown, N. J., to Rome, N. Y. Mr. Speaker, that decision was reached only after long study by competent offi- cials. It was predicated solely on the increased efficiency and national secu- rity as well as decreased personnel and costs which would inure to the taxpay- er—but it was not pleasing from a stand- point of political skulduggery and back scratching. As a result thereof, in January 1950 and prior to the actual physical transfer of the Watson Laboratories, the House Armed Services Committee created a special subcommittee to investigate the termination of work at Eatontown, N. J. and the establishment of the electronic center at Rome, N. Y. Public hearings were held by the newly created subcommittee in Wash- ington, D. C. The subcommittee visited among others the present location of the Wat- son Laboratories at Eatontown, N. J., as well as the Griffiss Air Force Base at Rome, N. ¥. It was not until March 21 of this year that the subcommittee submitted its re- report to the House Armed Services Committee. That report, in effect, ap- proved the action of the newly created Department of the Air Force in trans- ferring the laboratories, but a minority adverse report was submitted by my good and long-time colleague on the House Armed Services Committee who sits on the other side of the aisle, the Honorable Harry L. Towx, a member of the subcommittee. Now, Mr. Speaker, I note that in a statement made to the subcommittee Mr. Tower points out and let me quote the gentleman from New Jersey: During the course of the controversy over the proposed move of this facility, numerous Members of Congress, as well as outside in- dividuals and organizations, have expressed their desire to be objective about this situ- ation. * * “ My position is no different than theirs, but perhaps it will assume more validity when I say to you that the Watson Laboratory is not in my district. It is more than 70 miles away, and its retention or re- moval has no political significance to me. Mr. Speaker, may I say that I count myself numbered among those who Mr. Towr has stated are motivated solely by the best interests of national defense and £n economy in Government, and more- over, like my good friend, Harry Tower, the Watson Laboratories are not in my district. Further, like the gentleman from New Jersey, I too am 70 miles or more distant from Eatontown. I do not know why my friend from New Jersey chose to ignore the exhaus- tive studies started in September of 1945 by competent military authorities who have testified as to the actual conditions that gave rise to their recommendation for the change. Neither do I know why he waited until March 21, 1950, to render the statement. Certain it is that as a member of the Armed Services Commit- tee he must have known of the proposed move, but Mr. Tower dismissed all such considerations by stating in his commu- nication that— I am sure that Members are well aware of the fact that pressure from the proper sources applied at the proper time will ac- complish wonders. There is no denying the fact that there should be a centralization of expendi- tures for electronics made applicable to our military air services. It goes without saying that we in Con- gress should be guided by what we re- gard as unimpeachable testimony given by responsible military or other person- nel as to operations and costs. Of a certainty we, in this body, do not want our military to continue to pour money down rat holes and keep highly inefficient, out-moded military installa- tions activated to serve political ends of certain strategically situated and power- ful Members who achieve power in a large measure because of seniority in this body. I have pondered on what my colleague from New Jersey stated when he said: Pressure from the proper sources applied at the proper time will accomplish wonders. Despite all the testimony given with respect to the enormous savings that would be effected by the movement of the Watson Laboratories activities from one point to another, the taxpayers will be further assessed to carry on a highly inefficient, uneconomic, and wasteful op- eration due solely to the exercise of un- due congressional pressure being placed upon somebody not as yet identified un- less the conferees agree to stand by the bill as it passed the Senate. Mr. Speaker, who is there in this House who would tell any administrator in the executive department that he may not save money and render even a greater public service by doing a job more eco- nomically and efficiently? Mr. Speaker, from a reading of the report of the special subcommittee of the Armed Services Committee which was appointed to investigate the removal of the Watson Laboratories, I learned that the main area of Watson Labora- tories comprises 163 acres of Govern- ment-owned land which was transferred to the Air Force from the United States Army Signal Corps at the time that autonomy was granted to the Depart- ment of the Air Force. The installation presently employs 1,191 civilians, 53 offi- cers, and 25 airmen. In order to improve efficiency and to reduce costs, the Air Force is desirous of returning to the Army Signal Corps one of its many centers of operations and removing the laboratories located there- on to another unit. This latter installa- tion, known as Griffiss Air Force Base at Rome, N. Y., originally was constructed as an aircraft maintenance and supply depot at a cost of about $36.000.000. Re- A4207 placement cost is now estimated at ap- proximately $66,000,000. The Griffiss Air Force Base comprises an area of 5 square miles, and the buildings are of a permanent construction and in excellent condition. They are air-conditioned, centrally heated, and extremely well lighted with fluorescent lights. ‘They are surrounded by excellent concrete highways and sidewalks. The base is amply served with rail and truck termi- nals. In addition, the base has a first- class airport with concrete runways and aprons. The air base is complete with administration buildings, signal tower, and hangars which the Air Force states can be used in connection with the type of work done at Watson Laboratories. The hangars are presently being used and are housing the experimental type air- craft necessary to the work at Watson Laboratories. Certain modification of the buildings at Griffiss Air Force Base is necessary. There is an item in the public works bill in the amount of $2,781,500 for this purpose. In addition, there is an item of $240,000 in that bill for construc- tion at the Griffiss Air Force Base inci- dent to the moving of the laboratories. In comparison with the foregoing, the subcommittee reported to the Committee on Armed Services that they found the Watson Laboratories at Eatontown, N. J., to be occupying temporary quarters which were constructed during the last war and are mainly of a wood-siding and tar-paper construction. Furthermore, there is no landing strip at the present site of the Watson Laboratories, and they found it necessary for personnel to drive approximately 40 miles to McGuire Air Force Base, which is presently used in connection with the work at the Watson Laboratories. However, McGuire Air Force Base is a fighter base and pres- ently being used for that purpose, The Air Force contends that the elec- tronic testing at the fighter base inter- feres with fighter activities, and when the test flying is being done it is often necessary to cancel fighter training in order that the two do not conflict. Fur- thermore, the experimental planes, which range from B-29 size down, are now based at Griffiss Air Force Base, and when testing is necessary it requires the planes to fly to McGuire Air Force Base, a distance of over 200 miles, undergo the experimental training and then to re- turn to Griffiss Air Force Base. The Air Force contends that this is not only ex- pensive, but is a loss of personnel work- ine time, all of which could be avoided if the laboratories were physically Jocated at Rome. In addition, the Air Force produced detailed airway charts which showed thet the Watson Labora- tories, McGuire Air Force Base, and Greater New York area to be one of the most densely air-traveled sections of the world. As a safety feature, this was compared with Rome, N. Y.. which has only one airline connecting it with other points in the country. In lieu of this, a small privately owned airport can be used, but testimony showed that this air- port has macadam runways and that Jandings on these runways have resulted
A4268 in continual wheel undercarriage and propeller repairs to aircraft. It is also contended that this airport is unsuitable because of its small size. The Department of the Air Force con- tends that if Watson Laboratories are retained at its present site, it will be nec- essary to start a large building program which would eventually entail the ex- penditure of approximately $17,000,000 if all of the buildings are to be replaced with permanent-type structures. Evenif this is not done, extensive repairs are now necessary. The Air Force further contends that it is not economical nor in the best interests of the national de- fense to allow an installation presently valued in excess of $60,000,000 to be de- clared surplus and stand vacant while permanent-type buildings are built at the present site of the Watson Labora- tories. The subcommittee did not find that there was any disagreement between the witnesses in favor or opposing the move concerning the fact that a considerable sum would have to be expended on Wat- son Laboratories if it was retained at its present site. The disagreement comes about as to how much it would be neces- sary to spend. The subcommittee re- ported, however, that it “is of the opinion that the representatives of the Air Force, who have spent many months studying this project, are in a better position to know of the needs for research and de- velopment within the Air Force than are the employees of Watson Laboratories or private citizens who are concerned only with that instalation.” It is also significant to note that many of those opposing the move have never seen nor inspected the facilities at Grif- fiss Air Force Base. The representatives of the Air Force further testified that it is the intention of the Department to consolidate other electronic activities at Griffiss Air Force Base, after the contemplated move has been completed, in the interests of co- ordination and economy. Without a considerable building program this could not be accomplished at Watson Laboratories. At Griffiss Air Force Base a@ long-range program of centralization could be accomplished without further expense for buildings inasmuch as there is ample space, not only for Watson Laboratories, in its present size, but for any expansion which may be envisioned at this time. Furthermore, according to the Air Force, many of the buildings at Griffiss Air Force Base are so built as to be readily adaptable to the type of work carried on at Watson Laboratories. Much of this work is confidential and secret. Therefore, buildings at Griffiss Air Force Base, with only one entrance and exit and with no windows, are ideally suited for this type of work as they are easily susceptible to being pro- tected and guarded. This is not true at the present location of Watson Labora- tories. The buildings are of such a con- struction that they do not easily lend themselves to seeret-type experimenta- ion. It appears from the testimony that the contemplated move of the Watson Lab- oratories has been publicly known for some time. While witnesses disagreed as to when it was first made public, the acting president of the Rome Chamber of Commerce read newspaper articles into the record which disclosed that the move was contemplated and was a matter of public knowledge at Rome, N. Y., as early as 1948. The congressional delegation con- cerned with this move stated that they first learned that the move would defi- nitely be made in October or November 1949. The subcommittee cannot help but feel that the opponents of this move have delayed in bringing the matter to the committee’s attention. On the day of this subcommittee’s first meeting, two officers and some equipment had already moved to Griffiss Air Force Base. On February 8, 1950, between 66 and 170 additional officers and equipment were due to be moved and it is therefore, apparent that this committee is in- vestigating an action which in part, at least, has already been accomplished. The entire move is phased over a period of about 2 years. This is done so as to disrupt the workings of the laboratories to the least possible degree, and the rep- resentatives of the Air Force testified that it phased the move so as to move all of the employees of a certain labora- tory and its equipment at an identical time, The subcommittee heard considerable testimony concerning the proximity of the Watson Laboratories at its present site to other laboratories in the immedi- ate vicinity, and particularly to Fort Monmouth, N. J. It is recognized that the engineers at Watson Laboratories do work in close connection with the private laboratories and the universities in the locality. On the other hand, the representatives of the Air Force testified that by removing the laboratories to Rome, N. ¥., excellent opportunities would be afforded for the scientists to work with a new General Electric lab- oratory which would then be only 35 miles distant. There is also testimony concerning the number of contracts with private concerns which are supervised by scientists of Watson Laboratories and which companies are physically located in the New Jersey area. The Depart- ment of the Air Force recognizes the fact that some additional travel will be neces- sary to continue this supervision until the contracts expire, but they feel the advantages of the new location far out- weigh this disadvantage. The Air Force cited many facts and figures to show that by no means were its contracts entirely confined to the New Jersey area. The Department’s testimony discloses that it has many contracts in the Midwest which is an electronics center, and that some contracts are being supervised as far away as Los Angeles. The Depart- ment points up the fact that due to the many different types of contracts neces- sary for electronics work, no particular location can be ideally suited, for the private contractors dealing in electronics are widely scattered throughout the en- tire United States. Suffice it to say that the Air Force expresses confidence that APPENDIX TO THE CONGRESSIONAL RECORD the removal of the laboratories from the New Jersey electronics area is not of such importance that the move should not be made because of this fact. Testimony disclosed that there will be adequate housing at Rome, N. Y., or in other towns or cities within commuting distance. It was also shown that this housing was constructed by private capi- tal, primarily for the employees who were to be moved to Griffiss Air Force Base. The subcommittee heard no complaints from the opponents of the move concern- ing inadequate housing of personnel at Rome, N. Y. At the suggestion of the Air Force, approximately 400 housing units have been constructed by private capital in the Rome area. In addition, the commanding officer of Griffiss Air Force Base informed the subcommittee that he is reserving 50 units on the base, for key personnel. Furthermore, bach- elor officers’ quarters on the base will be made available for single personnel, both ladies and men, for temporary purposes until such employees find a permanent location suitable to them. As a matter of fact, representatives of the Air Force contend that it will not be necessary for moving personnel to incur one night’s hotel expense while awaiting permanent quarters. It is understandable that there is con- siderable opposition to this move. Many of the employees at the present site of the Watson Laboratories have purchased homes or have leases and, in addition, have their children in school in that lo- cality. Furthermore, it is recognized that this section of New Jerscy will suf- fer economically by the removal of this payroll from that section. On the other hand, it is felt that the interests of na- tional defense and of economy should prevail over private interests. In this connection, it must be noted that when the subcommittee made its inspection several officers were questioned as to the matter of selling privately owned homes. Due to a housing shortage in the Watson Laboratories area of New Jersey, the per- sons questioned were of the opinion that privately owned homes could be disposed of at no loss to the owner, and, in many cases, at a profit, in the event the Air Force continues with its plans to vacate the laboratories. In fact, the program of the Signal Corps does call for some ex- pansion at the base, and the subcommit- tee suggests, in the event the program of the Air Force is adhered to, that the Monmouth Army Base give thought and study to the complete utilization of the facilities of the Watson Laboratories. There is need for a prompt decision of this problem. Some material has al- ready been moved to Griffiss Air Force Base. Other equipment is crated and ready to be transported. The Depart- ment of the Air Force is holding the move, however, pending report by this committee. Further delay will result in serious inconvenience and expense to the Government and to the personnel em- ployed at the laboratories. Much of the foregoing factual infor- mation I have culled from report No. 179, which is a consideration of pro- posed removal of the Watson Electronics
APPENDIX TO THE CONGRESSIONAL RECORD Laboratory from Eatontown, N. J., to Griffiss Air Force Base, Rome, N. Y. Mr. Speaker, in view of the foregoing and despite my membership on the Armed Services Committee, I am alto- gether at a loss to know why that com- mittee voted to delete from S. 2440 a comparatively small appropriation that would have meant an undisputed savings of millions of dollars to our taxpayers. Certainly, the people as well as the press of upstaie New York who are altogether acquainted with this problem—will, m the coming congressional and senatorial campaign, have many questions to ask for refusing to avail the armed services of an existing plant and structures wholly suited to their use with the pres- ent-day value of $60,000,000. It baffles even me to understand why a branch of our military 1s not permitted to reduce its operating charges by as much as a million dollars a year and is compelled to carry on electronic research and other developments in tar-papered shacks, heated with potbellied stoves, as described by the special subcommittee of the Armed Services Committee in its regular report. The Banker-Farmer Relationship EXTENSION OF REMARKS oF HON. ROBERT E. JONES, JR. OF ALABAMA IN THE HOUSE OF REPRESENTATIVES Tuesday, June 6, 1950 Mr. JONES of Alabama. Mr. Speaker, recently my good friend Mr. T. E. Wil- liams, a distinguished citizen of Athens, Ala., and the retiring president of the Alabama Bankers Association, addressed the annual convention of that group in Mobile, Ala. Mr. Williams’ speech is so important I want to make it available to every Member of the House. No man in Alabama could be as well equipped and informed on the subject as Mr. Wil- liams, and his vast knowledge of the eco- nomic problems facing the Alabama farmer makes his observations particu- larly interesting. No Alabaman has contributed more of his time, energy, re- sources, and imagination to the welfare of the farmer and farm life than has Mr. Williams. The product of his life work is to be found on every farm in north central Alabama. I commend his speech to you for your consideration. It follows: Our State has made much progress in both agriculture and industrial expansion. Since we have a special topic on the industrial phase of our work, and since agriculture is the foundation stone of Alabama’s economic life, I shall cal" your attention to the over-all Alabama farm picture, and the place bankers occupy in this picture as it now looks: 1. A ceiling on cash crops—cotton, pea- nuts, potatoes. There is nothing to indicate @ bigger outlet for these products. So pro- duction control very likely will conuinue. 2. The only big opportunity for increasing farm production in Alabama is with livestock and trees. Since trees are different and will be discussed in a separate topic, we will con= fine this discussion largely to livestock. 3. The mule and horse days are gone. Tractor power has become a must for effi- ciency, for economy, and to do the kind of farming which is essential to good profits. 4. Our biggest handicap at present is in- adequate capital. Information and land are available, and farm labor is adequate, hut most farms are very inadequately financed. When a two-horse farmer, for example, shifts from mule power and equipment to tractor power and equipment, he increases his financial needs for power and equipment 5 to 10 times. Pastures and other feed crops are essential to profitable livestock farming, but land preparation for pasture is expensive. A good example of this is alfalfa. To plant an acre of alfalfa calls for from $40 to $50. Other crops cost less, but any of them calls for big money, Fences, too, are expensive, and most farms don’t have enough fences. And buying livestock to get started, or to expand, also costs money. Around §200 is needed to buy either a good dairy cow or a good beef cow. Some use a higher figure. This means at least $2,000 for either a dairy or beef herd of 10 cows, which is not a big herd. Underneath all this is the fact that there are millions of acres of land in Alabama now producing little or nothing. This land is adaptable to feed crops, especially grazing, and it should be in production. To prepare, fertilize, and seed this land calls for much money, and the privilege to lend this money at reasonable rates is yours. This brings us to the opportunity of the bankers—ye managers of money who hold the progress of your communities in your hands, We urge you to study the farmer’s needs, the individual farmer, and the improved meth- ods. Yes, get out from behind your desk and visit your farmer customers. Break bread with them. Get some sand between your toes, some Manure on your shoes. You can then understand better his problems and his needs. You might be persuaded to loosen up and make more of what I consider the best type of loans a country bank can make— farm. loans. Livestock farming is the landowner’s re- sponsibility. While tenants and sharecrop- pers may have a part in the operation, bank- ers, as a rule, can and will deal with land- owners, No Government agency can serve the needg of the farm people as well as the individual country bank. Lippmann Deplores United States Obsession With War EXTENSION OF REMARKS HON. GEORGE G. SADOWSKI OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Tuesday, June 6, 1950 Mr. SADOWSEI. Mr. Speaker, under Jeave to extend my remarks in the Rrc- orD, I wish to inelyde an article by Walter Lippmann, which appeared in the Detroit Free Press, Sunday, June 4: LIppMANN Depiores UNITED STATES OBSESSION With War (By Walter Lippmann) WastHINGTON.—General Marshall, speaking in Arlington Cemetery, found it necessary to warn the country against the “surrender” A4209 of any “part of our leadership in the fight for peace” He used these words in replying specifi- cally to Mr. Hoover’s proposal to break up the United Nations. But he was thinking of something much bigger than that. The theme of this exalted and faithful address was that we are failing to provide leadership to mankind in the fight for peace. Having said that, of course, we must re- main well armed and that we must use our economic power constructively, General Marshall warned the country that “we should not place complete dependence on military and material power.” The word complete was ‘not, I think, carelessly and accidentally used. For no one who has been a close ob- server of things in Washington can fail to feel that for a variety of reasons, some of them objective, some psychological, some personal, some partisan and political, the administration’s foreign policy has in the last year created the impression here and abroad that it places virtually complete de-~ pendence on military and material power. This impression may or may not reflect the real views of Mr. Truman and of Mr. Acheson. But that this impression has been created and that it has spread around tne world is certain. It is reflected at home in the defeatism shown in the Gallup poll, which finds a majority of the people expecting war within 5 years. It is reflected abroad in a drastic decline of American popularity among the broad masses of the people. This country has hardly begun to realize the extent and the depth of the loss of confidence in our wisdom, and even in our motives. We have allowed ourselves to become identified with the idea that war is inevita- ble, and that our whole foreign policy is de- termined by the strategic necessities of the United States. As long as that is the picture of ourselves which we permit mankind to regard as the true picture, no money we appropriate for armaments and no contribu- tions we make to recovery can arrest the breakdown of American influence abroad. “War,” said General Marshall, “is no longer just an evil. In this age it seems intolera- ble.” The plain fact is that we have allowed the Soviet propaganda to associate us with the intolerable evil of war. Indeed we have helped the Soviet propaganda by all kinds of incendiary utterances from the Pentagon, from the State Department, from various foreign missions abroad, in Congress, and in inspired radio and press commentaries. We have played right into the hands of the Soviet propaganda by explaining that every- thing we do, every decision we take, is based, on 2 strategical calculation about war. This damnable obsession has gotten to the point where we can hardly send milk to babies abroad without explaining that this is an important action in our cold war with Rus- sian communism. The official theory of peace has been that it can be preserved if the Atlantic commu- nity is united and strong. Until it is stronger and more united than it is now, we must not talk about peace. We must not let the Rus-~ sians think we wish to negotiate. For that will only make them think that we are weak. We must not let our own people think about negotiation. That will only make them soft and unwilling to vote the money,-: to create the armies, and to face the sacrifices which are necessary to make us strong. We must concentrate our whole attention and effort on strengthening and uniting the At- lantic community—and then, eventually, we shall extend the area of possible agree- ment. This theory is, I venture to believe, almost but not altogether sound and true. It is more than a mere half-truth. It is decidedly less, however, than the sufficient truth.
A4210 The defect of the theory is that you can- not unite—and keep united—the Atlantic community unless you can convince the exposed nations of continental Europe that you are organizing peace. If you treat the Atlantic community as a military coalition for war, or allow the impression to exist that that is what you are doing, you will not, in my opinion, he able to unite the Atlantic community. For there are many countries in the At- lantic community that cannot surely be de- fended in case of war. There are some which cannot be defended at all. They cannot be intimately associated with the Atlantic com- munity unless they believe that in that asso- ciation war can be prevented. The more probable that war anvears to be the stronger the tendency of tre nce.cracble countries to break away from the Atlantic alliance. Therefore, it is safe to predict that no mat- ter what the agreements teached by the governments in London, the unity and strength of the Atlantic alliance will decline, not increase, unless the administration suc- ceeds in identifying itself, once more, with the probability and with the hope of peace. Effect of Foreign Importations on American Optical Industry EXTENSION OF REMARKS oF HON. WILLIAM LANGER OF NORTH DAKOTA IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. LANGER. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp a letter writ- ten to me by C. A. Mowrey, of the DuMaurier Co., of Elmira, N. Y. There being no objection, the letter was ordered to be printed in the REcorp, as follows: DuMaurier Co., Elmira, N. Y., June 1, 1950. Hon. WinztaM LANGER, Washington, D.C. Drar Siz: Another vital American industry is being destroyed. As you already know, industry after indus- try is being destroyed by our “benevolent” Government. Those that are not already bankrupt are rapidly approaching that condition, The safety and well-being of this Nation depends on many of these industries. A world war ITI could easily be lost because of this short-sightedness. Now the American binocular business is a victim. Manufacturers of binoculars and other optical instruments cannot hope to compete with the influx of Jap glasses. This condition not only makes for hardship to American manufacturers, but prevents the training of skilled help demanded for defense instruments. . During World Wars I and II the United States Government begged civilians for all kinds of binoculars, fleld glasses, and tele- scopes. Such conditions will again prevail if the wreckers in Washington are not stopped and stopped soon. Let us take an example: A 7x50 millimeter prism binocular made in this country sells for $175 plus $35 excise tax. The Jap copy sells retail for $30 plus ¢6 tax, By no stretch of imagination could any American manu- facturer hope to equal this. This ruinous condition exists all along the line. Opera glasses are sold wholesale in the United States for the unbelievable price of 27 cents each, duty-paid and a profit to the importer. Reading-glass lenses for 8 cents each landed. This 1s below the cost of the rough glass to domestic makers. The binccular production alone in Japan has reached the staggering total of 120,000 a year. Untold quantities of other optical instruments are also produced. Any Ameri- can manufacturer who risks money on pro- ducing a new item 1s sure to have it copied in Japan, forcing him out of the market. We defeat a cruel, arrogant enemy. We then slobber over them and allow their im- ports to come in at 10 to 20 percent of the American cost. Every such item takes that much away from our own workmen And the amounts are reaching alarming proportions. We do not object to clean competition, but do object strenuously to such unfair and baseless slaughter of our industries. They are wrecking our livelihood. They are wrecking our defense. The Waltham Watch Co. is already bank~ rupt. The glove industry is on the rocks. The optical industry is being obliterated. The china industry is hard hit. Linens, shoes, necklaces, and countless of others. And the Fresident wants still lower duties. When will this damnable condition be stopped? We believe that import duties should be raised to an equitable level. These deplorable conditions are being brought to your attention. We hope that you will use your influence to correct them before it is too late. Sincerely, C, A. Mowney, DuMaurter Co. Happenings in Washington EXTENSION OF REMARKS HON. EDWARD MARTIN OF PENNSYLVANIA IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. MARTIN. Mr. President, I ask unanimous consent to have printed in “the Appendix of the Rrcorp, program No. 26 in a series of radio addresses enti- tled “Happenings in Washington,” de- livered by me on June 5, 1950. There being no objection, the address was ordered to be printed in the Recorp, as follows: HAPPENINGS IN WASHINGTON (Program No. 26) This is Ep Marrin, speaking to you from the Nation’s Capital, and bringing you another discussion of Happeninrs in Wash- ington. I want to talk to you at this time about the cat with 99 lives—about the subject that will not die. I want to talk to youeabout communism in our Government. The administration has sought to whitewash the cat, to kill it, to whistle it away, to make people forget it ig there. Yet the subject remains very much alive. Our people continue to be disturbed over whether the seditious elements have all been purged from our Government. In recent weeks there has been a great deal of confusion about communism. The air here in Washington has been clouded with charges and countercharges, statements and denials. Under those conditions there is danger that we might lose sight of the main objective. APPENDIX TO THE CONGRESSIONAL RECORD And that is to drive out of the Government every one, high or low, who is tinged with disloyalty to our country and to crush the poisonous influence of communism wherever it may be found. From time to time, new evidence is un- covered, indicating that official Washington is not yet cleansed of those who spread the corrupting -Cc7"7~r 4° Communism and serve as spies for ©. "+: «'+ of the Kremln. The last time I spoke to you about this was shortly after Alger Hiss had been convicted, a few months ago. The administration seemed to feel that the Hiss case was probably the last of it and that now the cat was dead. The administration took no action to im-~ prove the laws protecting us from traitors and spies in such situations as was disclosed in the recent arrest in Philadelphia of Harry Gold. ‘You recall he is held under $100,000 pail on the charge of aiding the British scien~ tist who turned atomic secrets over to Rus- sian agenis during the war. I want to discuss two other recent develop- ments. The first is the notorious Amerasia stolen- documents case of 1945. The administration thought it had buried Amerasia under 6 feet of whitewash. But it is back, as alive, as smelly and as shameful as ever. I will tell you about that in some detail. But, first I want to talk about a speech made 2 weeks ago by the Attorney General of the United States. In it he made the posi- tive statement that the FBI knows every Communist in the United States and that not a single Communist is now working for the Government, My fellow Pennsylvanians, think for a mo- ment how much damage could be caused by that loose and careless statement. It is no secret that loyalty investigations are being conducted in many departments of the Government. It is well known that the FBI is making secret check-ups. It has been stated that Federal grand juries have been considering some cases. And here is the Attorney General saying, in effect: “There is no need to search for Communist disloyalty. Among the 2,000,000 men and women on the Government pay- rolls we don’t have a single Communist.” I say, my friends, that the chief law officer of this Nation, at a time when these investi- gations are going on, had no right to make a remark like that. I say he would serve the Nation better if he gave less time to such speeches and more time." .k) vettir’ ways of strengthening the espio:: 3 .: . ©. our Nation, to protect us from traitors. And now let us turn to the Amerasia case, For those of you who don't recall the details, let me remind you briefly: In June of 1945, six people were arrested in connection with the theft and transmission from the State Department of certain “classi- flea” documents. They contained information concerning the activities of the State Department, the Office of Naval IneMieonec, the Military In- telligence Division, Otlice of Strategic Serv- ices, and the Office of War Information. Remember, we were at war at that time. And keep in mind also that papers referred to as “classified” are marked “secret,” “top secret,” and “confidential.” The charges were watered down. One de- fendant, Philip J. Jaffe, editor of a pro-Com- munist publication called Amerasia, got off with a $2,500 fine. It was held that he had merely collected the documents as back- ground materlal to write articles for his magazine. Another, named Larsen, a far eastern ex- pert in the State Department, paid a $500 fine. The rest were cleared. Two things stand out in connection with that case.
APPENDIX TO THE CONGRESSIONAL RECORD The first is that while the FBI thought it had a very strong case, the Justice Depart-~ ment insisted it was a weak case and that even the actions of Jaffe and Larsen, and I quote directly from the court record, “did not involve any element of disloyalty.” The second point is that the Government minimized the nature of the stolen docu- ments. The Government claimed they were trifling, unimportant papers which were not really secrets at all. The Government speed- lly buried the Amerasia case and thought it would stay buried And to this very day, they are insisting that the stolen documents were only small stuff Iam going to list for you some of the papers which were found in the office of Amerasia magazine during the FBI raid. There were two State Department docu- ments marked “Top secret.” There were 20 original State Department papers and 14 copies of other State Depart- ment documents, all classified as ‘‘Secret.” There were two original OSS documents. There were two Naval Intelligence docu- ments “Secret.” There were nine documents from Military Intelligence labeled “Secret.” There were three OWI secret documents. Then there were dozens of papers labeled “Confiden- tial.” When Larsen was arrested and his home raided, the FBI found 19 copies of State Department papers, 7 Naval Intelligence doc- uments, 2 papers from Military Intelligence, and 2 War Department documents, all marked “Secret.” And there were dozens of other papers from all these Departments and agencies labeled “Confidential.” This, mind you, was during the war. When our people first learned that the papers had been taken from the State Department files, high Government officials said it was not serious. ‘ They declared “a lot of that stuff Is noth- Ing but bits of information about China, Korea, and India, of no value to any foreign country.” They are still putting up that argument down here in Washington. It seems to me anyone should know the answer to that now. Certainly, informed people should have known the answer in the middle of 1945. We all know how the Russians armed the Chinese Communists and supported them in the drive to take over China from the anti-Communist regime of Chiang Kai-shek. No wonder they knew how far they could go. No wonder they moved so surely and g0 boldly. No wonder they couldn’t be bluffed or fooled. Imagine having such a mass of secret information about the at- titude of our State Department and our armed forces in China and all of east Asia, Let, even today, after all that has hap- pened, there are those in high places in Washington who contend that the material ‘was worthless. Now let me move up a year to 1946, when a special House committee investigated the Amerasia shame in secret session, At the conclusion of the hearings the com. mittee made a report in which the Demo- cratic majority approved the administration stand of a weak case. One Republican member of the committee was ill. The other two filed strong dissent- ing reports, charging there was disloyalty and that the case should be reopened. The majority report did state that wartime secu- rity in the State Department was practically nil and that anyone could walk out of the place with secret documents. The testimony before this committee, given behind closed doors, was impounded and not disclosed. Recently, as the pressure to look once more into the Amerasia case became stronger, the testimony was made public for the first time. Let me tell you some of the interesting things which were not disclosed in 1945 when two men got off with small fines and four other persons went scot free. First, it was disclosed that little Amerasia Magazine, with about 2,000 circulation, had a large back room equipped with machinery to copy documents in large quantities. Opera- tives of our Government discovered that photo copies had been made of many of the secret stolen documents. Now, my friends, can anybody suggest why a loyal publication would be making quanti- ties of copies of Government documents marked “secret” and “top secret.” And the FBI files show that Jaffe, the man who ran the publication, was a member of many Communist-front organizations and had been many times in communication with Communist leaders. Second, the State Department’s own secu- rity officer, appearing before the House com~ mittee in 1946, was asked whether posses- sion of the stolen documents by any out- sider would be a serious threat to the secu- rity of the United States. He replied, and I quote: “Very definitely. There is no question about that.” Does that sound as though these docu-~ ments marked “secret” and “top secret” were worthless? One high official of the FBI testifying at those closed hearings said there was no doubt that Philip Jaffe, who ran Amerasia, had access to almost everything in the files of the Government wartime agencies. Does that sound as though the Amerasia case was something to be brushed off and hushed up? Or should the Government have dug right down to the bottom, expos- ing every dark corner to the light? Now we know that Alger Hiss was part of one ring stealing documents from the State Department. And at the Hiss trials, a for- mer State Department man named Julian Wadleigh admitted that he was part of still another ring stealing documents from the State Department for Russian agents. We know that Judy Coplon was found guilty of dealing with a Russian agent to be- tray Government secrets. Here in the Amerasia case is a fourth ex- ample of a leak as wide as the Mississippi River through which secret documents poured out into unauthorized hands. ‘The American people have a right to know whether there was a fifth and a sixth and a seventh leak. They have a right to know whether disloyal rings operated in other de- partments and agencies as well, or whether their activities were confined to the State Department. And furthermore they have a right to de- mand that their Government make a com- plete investigation and not a whitewash. My own fight against communism is well known to you. I was in the thick of the fight when many of our people were unaware of the danger. In those days those of us who denounced communism as a menace to American freedom were ridiculed and called red baiters. Even as recently as 1947, President Truman, in a letter to former Gov. George H. Harle, of Pennsylvania, wrote, and I quote: “People are wrought up about the Com- munist bugaboo, but I am of the opinion that the country is perfectly safe as far as communism is concerned.” My fellow Pennsylvanians, if our country is to be made perfectly safe against commu- nism, there must be no whitewash this time. There must be a full and complete disclosure. We must know where we stand. We must be assured of a thorough housecleaning in our Government. This is Ep Martin speaking to you from the Nation’s Capital. I will be with you again in 2 weeks. Thank you for your attention. A4211 The 15 Top Men in the United States of America EXTENSION OF REMARKS HON. HARRY P. CAIN OF WASHINGTON IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. CAIN. Mr. President, Merryle Stanley Rukeyser, International News Service economic commentator, recently offered his judgment on 15 prominent American leaders. This evaluation ap- peared in the Seattle Post-Intelligencer. Among the named leaders is Frank McLaughlin, of Seattle, a close personal friend of mine. Others named are col- leagues of ours, and good friends, too. I ask unanimous consent that the Rukeyser comments be printed in the Appendix of the Recorp, where they can be applauded by those who share Mr. Rukeyser’s views. There being no objection, the editorial was ordered to be printed in the REcorD, as follows: THE 15 Top Men in Uniren STATES oF AMERICA (By Merryle Stanley Rukeyser) Who are the top men who are running the United States of America? The question was raised in an inquiry from James R. Young, associate editor of the An- derson (S. C.) Daily Mail, who planned to discuss the subject in a civic club talk. I think the significant personalities are not necessarily those in big posts. Some- times the individuals at the top are creatures of circumstances, and depend heavily on the ideas and guidance of others. Sometimes the front-line thinkers are in inconspicuous posts. On the other hand, much publicized men frequently turn out to be little men in big jobs. It seems to me that the subjoined have been making significant contributions to the survival of the American competitive sys- em: 1. Gen. Dwight D. Eisenhower, president of Columbia University, for his meritorious postwar service in interpreting the American system in terms of liberalism and human freedom. He has been at the forefront of the battle against statism and collectivism. 2. Gen. Douglas MacArthur for his majesty of expression and sureness of execution of carefully thought-out programs in war and in peace. 8. Bernard M. Baruch, financier, philan- thropist, and wise counselor of Presidents. Mr. Baruch has rare gifts of timing, of fore- sight, and of reducing complicated situa- tions to simple terms. 4. Albert Einstein, physicist extraordinary, at Princeton University, whose creative imagination laid the basis for revolutionary explorations in the realm of atomic energy. 5. Senator Harry F. Byrp, Democrat, of Vir- ginia, who, as chairman of the Joint Com~ mittee on Nonessential Federal Expenditures, has through the years hewed to the line in behalf of national solvency and prudence. 6. Senator WattrR F. Gzorce, Democrat of Georgia, who with Senator Byrp and others has provided a common sense voice in the Senate, especially in matters relating to taxation and governmental finances. %. Senator Ropert A. Tarr of Ohio, Repub- lican Senate leader, who as the antithesis of a demagog prefers to meet issues rather than
A4212 dodge them, and who had the courage to utter unpopular trutas. 8. Alfred P. Sloan, Jr., chairman of the General Motors Corp., for his monumental work in building the world’s No. 1 automo- bile company Mr. Sloan’s special genius has been in recognizing that the benefits of improving efficiency and better technology shovld be distributed among customers, workers, and stockholders. 9. Herman W. Steinkraus, president of the Bridgeport Brass Co. and president of the Chamber of Commerce of the United States, for his forthrightness in affirmative presenta- tion of the merits of the American competi- tive system. 10, Fred J. Emmerich, president of Aled Chemical & Dye Corp., for his exemplifica- tion of the great value in the modern cor- poration of the comptroller’s factual ap- proach to the dynamic problems of busi- ness. 11. Ludwig von Mises, a new American, formerly head of the Austrian School of Eco- nomics, for his masterly theoretical proof that Marxism is reactionary and that modern capitalism is the creator of liberty and ma- terial advancement. His newest tome, “Hu- man Action,” is an effective antidote to Marx’s “Capital” and John Maynard Keynes’ “The General Theory of Employment, Inter- est and Money.” 12, T. Coleman Andrews, Richmond, Va., accountant and former director of the Gen- eral Accounting Office of the United States, for his revealing official audit of Tennessee Valley Authority, which debunked the pre- tense that it ‘vas a yardstick for measuring private utility companies. 18. Senator Gzorcz W. MaLone, Republi- can, of Nevada, for his level-headedness in avoiding the bandwagon of internationalism. He ruggedly seeks to relate international economic policies to the needs and welfare of the domestic economy. 14. Father Edward A. Keller, director of the bureau of economic research at Notre Dame, for his development of a technique for analyzing contemporary social and eco~ nomic trends in terms of simple, double- entry bookkeeping. 15. Frank McLaughlin, president of the Puget Sound Power & Light Co. of Seattle, for his unremitting effort to demonstrate to fellow corporate executives that the risks of positive expression may be less than the hazards of cowardly failure to face issues. Mr. McLaughlin has been a pioneer in the use of concept advertising. The Missouri Valley Authority—Article From Burdick’s Magazine EXTENSION OF REMARKS oF HON. WILLIAM LANGER OF NORTH DAKOTA IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. LANGER. Mr. President, in North Dakota, there has been such a false and vicious campaign against the Missouri Valley Authority—commonly called the MVA by the Power Trust and their friends—that I am happy to insert in the ConcRESsIoNaL ReEcorpD an article written by Representative Usuer L. Burvick. For clearness, conciseness, and truth, the article is unequaled. The Nonpartisan League for years has constantly advocated MVA; and it has been endorsed by its candidates on the Republican ticket, headed by T. H. H. Thoresen, for Senator; Usher L. Burdick and Martin Stenehjem, for Congress; and Frank A. Vogel, for governor, all of whom has supported the MVA, I ask unanimous consent that an arti- cle entitled, “The Truth About the Mis- souri Valley Authority,” which appeared in UsHeEr L. Burpick’s magazine for May- June 1950, may be inserted in the Ap- pendix of the Rzcorp. There being no objection, the article was ordered to be printed in the Recorp, as follows: Tue TRUTH ABOUT THE MissouRI VALLEY AUTHORITY In North Dakota there are a great many against an MVA, and also many for it. I shall give my reasons for supporting the enterprise: First of all, the Tennessee Valley Authority was put through Congress with intense op- position—not from the people, but from the Power Trust. Many faults were found with it, but principally the charge of “interference with private business.” Right here, it must be remembered that this is not strictly a private business, but a great public busi- ness. When this great enterprise was started, the power rates in the South were prohibi- tive, running as high as 8 cents per kilowatt. hour, but today the same service is being delivered for 1 cent per kilowatt-hour. Along with REA, the Southern States are being electrified completely and it is a known fact that this cheap power has put the South- ern States back on the map. More indus- trial development is now in progress in the South than in any part of the United States. TVA’S COST YARDSTICK Not only has TVA delivered cheap power, but it has developed a yardstick of costs that the private power companies have been com~ pelled to consider in other sections. Today there are four of these great public enter- prises furnishing power and the yardstick for a considerable section of our country. They are: The Tennessee Valley Authority; Tacoma, Wash., municipal. The Bonneville power; and in Canada, the Ontario Authority. Had the Tennessee Authority rates been in use in North Dakota in 1948, there would have been a saving to the people of $6,922,513. Had the Tacoma, Wash., rates been in use in North Dakota for the same year, there would have been a saving of $7,304,898. Had the Bonneville rates been used in North Dakota, the saving would have been $5,960,139, Had the Ontario rates been used in North Dakota, there would have been a saving of $7,541,751. Taking an average of all these authority prices for North Dakota, there would have been a saving of $6,932,325. Remember also that today the people of the United States are paying $2,000,000,000 more in power rates than they should pay, and that without these authorities the people would be paying $4,000,000,000 more than they should. As other public power authorities are cre- ated, the rates to the consumers everywhere will be reduced. Sharply reduced in areas covered by the authorities and much reduced in other sections where private power com- panies are compelled by these authorities’ rates to reduce them. The stock objection to these public power enterprises is that they not only interfered with private business, but it created an. other bureaucratic set-up that can defy not only the people, but the Government as well. There is no foundation, whatever, to this APPENDIX TO THE CONGRESSIONAL RECORD charge for the reason that public power ts not a private enterprise, but a public one, and the directors of an authority are ap- pointed by the President with the consent of the Senate, and can be removed at any time. Pope Offers Plea for Social Justice EXTENSION OF REMARKS HON. GEORGE G. SADOWSKI OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Tuesday, June 6, 1950 Mr. SADOWSKI. Mr. Speaker, the fight against communism cannot be won by merely building more armaments and making speeches of viluperation. The fight must be directed against poverty, hunger, injustice, disease, and unfair exploitation. We can no longer shut our eyes and say that what goes on in the rest of the world is none of our business. Likewise we should be on.the alert against those who insist on throwing dead cats in our backyard. By that I mean all of those reactionary, backward, and repudiated rulers in the world who will not institute reforms demanded by their people, and finally when the people have lost all confidence in them, come running to us for money and help, with the cry that the Communists are after them, We can win our fight against commu- nism with the expenditure of very few dollars if we insist on social justice, and oppose human exploitation wher- ever we find it. No people desire to be shackled by communism. I wish to submit ar article which appeared in the New York Times, Sun- day, June 4: Popz OFFERS PLEA For Socian JUSTICE Rome, June 3.—Pope Plus today called upon people and governments to pool their resources in a world-wide campaign to bring about social justice and halt the march of atheism and materialism that might ulti- mately lead to a shooting war. In making this appeal the Pope, according to Vatican circles, clearly indicated that he supported the United States economic policy in Europe, which has been advocating the removal of all restrictions to trade to bring about better exploitation of resources by all nations participating in the Marshall plan, If this is not done, Pope Pius said in an address, there is a possibility that countless millions of people, lured by demagogs and false promises, will revolt against the existing social order. “Only a coalition of all people of good will in the whole world, for large-scale action loyally and harmoniously carried out, can bring a remedy,” he said. “This is the way in which one of the most preoccupying fac- tors in the international situation can be eliminated—one which more than any other is feeding today the rulnous cold war and threatens to unleash a hot war, a burning incomparably more disastrous war.” SOCIAL JUSTICE NEEDED The lack of social Justice, Pope Pius de- clared, had made disgruntled and impover- ished people a fertile breeding ground for “the spirit of evil,” which Vatican officials sald was in this case the papal synonym for communism. For that reason unemplovment
APPENDIX TO THE CONGRESSIONAL RECORD was “the most urgent problem, which weighs like a nightmare” upon all old industrial countries, the pontiff declared. The question then, he continued, was that of attaining a normal productivity capable of securing steady employment—a just, vital space for workers adequate to and compatible with the dignity of a man. A healthy production, wisely adjusted to consumption and to the needs of the people instead of an economic policy that selfishly secks to exploit material resources for pure gain and without paying heed to the needs of the human family is the surest way to bring about social improvement, the Pope sald. A sound economic policy can be followed without destroying the right of private prop- erty, which is upheld by Roman Catholic social doctrine, he declared. PLEA FOR SOCIAL BENEFITS He stated the workers should receive social benefits and the opportunity of improving thelr condition to the greatest possible de- gree without, however, forcing the employer to relinquish control of the means of pro- duction to place them under collective ownership. Those who wish to push social policy fur- ther in this direction, “strike against a limit where the danger arises that the working class may follow the errors of capital,” which consisted in the creation of large cartels. These big industries also eliminated private ownership, which they transferred to anony= mous trusts. “A Socialist mentality would accommodate itself very well to such a situation,” the Pope said. “But this development would disquiet those who know the fundamental importance of private property in promoting initiative and determining responsibility in the eco- nomic fleld.” The removal of the danger inherent in athelsm and materialism, the pontiff de- clared, can be attained if men act in “the spirit of justice, love, and peace.” The church, he continued, which has foreseen that danger, is already doing whatever it can to alleviate suffering and therefore must be aided and supported by all those who are likewise fighting or will fight against social injustice. Reconstruction Finance Corporation EXTENSION OF REMARKS oF HON. EMANUEL CELLER Or NEW YorK IN THE HOUSE OF REPRESENTATIVES Tuesday, June 6, 1950 Mr. CELLER. Mr. Speaker, with per- mission to extend my remarks in the Recorp, I am happy to attach an analysis made by Fiduciary Counsel, Inc,, of the activities of the Reconstruction Finance Corporation. ‘The Counsel is a truth- seeking organization whose job it is to get all the facts possible regarding particular subjects and present them in an unbiased manner. The attached analysis of the Reconstruction Finance Corporation is presented in exactly that manner. I was particularly impressed by the following statement appearing in the analysis: “Looking back on the Corporation’s record, it is evident that under the guid- ance of its directors and officers its func- tions have been performed at a substan- tial profit and the over-all aid rendered to the economy far outweighs the rela- tively small number of objectionable situations.” The analysis of current operations of the Corporation was made through the fiscal year ended June 30, 1949, and balances shown in the analysis are as of that date. I have obtained from the Corporation additional significant statistics for the first 10 months of the current fiscal year which are as follows: 4,499 business loans aggregating $454,226,000 have been ap- proved during these 10 months; 50 per- cent of these were for $25,000 or less, and 88 percent were for $100,000 or_less. During this same period Federal Na- tional Mortgage Association, a subsidiary of the Reconstruction Finance Corpora- tion, has made commitments to purchase $1,765,907,000 of home mortgages guar- anteed by the Vetérans’ Administration or insured by the Federal Housing Ad- ministration. Actual purchases during this period have aggregated $760,982,000. The Association’s and RFC’s program of reselling these mortgages to private in- vestors has been progressively successful during the current fiscal year and through May 19, 1950, approximately $226,000,000 of sales have been closed at premiums aggregating approximately $2,000,000. Net earnings of the Corporation during these 10 months have been approximately $23,025,000 after making provision for estimated future losses of $7,613,000. The net earnings include $14,075,746 earned by Federal National Mortgage Association. Total loans and securities outstanding as of April 30, 1950, were ap- proximately $1,900,694,000, exclusive of foreign loans and other assets amounting to $230,580,000. Since preparation of the attached analysis, salaries of the Directors of the Corporation have been changed by Pub-~ lic Law 359 to $15,000 per annum with the salary of the Chairman of the Board fixed at $16,000 per annum. All employ- ees of the Corporation are now under the Classification Act. The analysis follows: Tuer RECONSTRUCTION FINANCE CORPORATION SUMMARY Since organization in 1932, the Recon- struction Finance Corporation (the RFC) has been engaged in a wide range of construc- tive activities. Most notable, of course, ‘was the assistance rendered to banks dur- ing the depression years following the crash in 1929. In the period 1932-38, loans ag- gregating $1,300,000,000 up to 5,816 going panks were authorized, of which $1,100,- 000,000 was used. In addition, the Corpora- tion purchased a total of $1,100,000,000 of pre- ferred stock, capital notes, and debentures in 6,189 banks. Moreover, loans were authorized to 2,773 closed banks, and $984,000,000 was advanced to institutions of this type for dis- tribution to depositors. This aid was of considerable importance in bringing about a sound banking structure, which in turn was & prerequisite for the economy’s recovery. Throughout its life, however, one of its primary purposes has been to extend loans to business enterprises. Few, if any, of the requests for loans have originated from busi- nesses carrying prime credit ratings . since these were handled by private banks. Thus, most of the Corporation’s loan activities in- volved situations carrying relatively high elements of risk. Although it has operated A4213 under such conditions, the RFO’s loan record has heen exceedingly good. Practically every financial institution in the country has losses from loans and the RFC is no excep- tion. However, the actual loss ratio expe- rienced by the Corporation has been rela- tively low. For instance, since 1932, on all types of loans and investments totaling roughly $10,000,000,000, net losses have been less than five-tenths of 1 percent. For busi- ness loans in its loss ratio has been about six-tenths of 1 percent. , Activities have been quite profitable and since inception net income before reserves has amounted to $559,000,000. The Cor- poration has taken a very conservative stand in regard to setting up reserves against fu- ture losses. As of June 80, 1949, total re- serves for this purpose amounted to about $89,000,000. During the past year about 53 percent of earnings, or $9,200,000, was earmarked for this purpose, which in turn represented 1.4 percent of basic risk assets outstanding. Thus, it is seen that the Cor- poration is in a position to absorb relatively large losses (Such as appears probable in the case of Lustron) without impairing its fnan-~ cial position. In accordance with the RFC Act, as amended, the Corporation in July 1948 retired, by payment of $225,000,000 to the United States Treasury, its capital stock in excess of the $100,000,000 authorized. Moreover, in December of the same year it paid $307,000,000 to the Treasury which rep- resented dividends on its capital stock. The financial results mentioned above clearly refute the claim made from time to time that the Corporation loses the taxpayers’ money. Public reaction to the Corporation varies widely. Because of its political aspects it is very often difficult to find a truly un- biased opinion. It should be recognized that the RFC was created by and now operates under legislation passed by Congress. Therefore, the Corporation as an entity should be judged primarily on the following basis: Has it performed a beneficial serv- ice to the economy and has it carried out its functions as stipulated under the various acts? Looking back on the Corporation’s record, it is evident that under the guidance of its directors and officers its functions have been performed at a substantial profit and the over-all aid rendered to the economy far outweighs the relatively small number of objectionable situations. This is borne out by a review of the various phases of the Corporation's life. EARLY ACTIVITIES At the beginning of the 1930 depression years, the shortage of available credit was considered one of the important stumbling blocks to recovery. In order to open up new sources of credit and thereby help to alleviate this condition, the RFO was created by Con- gress during the latter part of the Hoover administration in January 1932. Operations began in February 1982 and at the onset, its functions consisted of making loans to hanks and other financial institutions, insur- ance companies, agricultural credit agencies, and railroads. With the exception of ad- vances made to railroads, direct loans to business were not made. Later in the 1930's, it became apparent that there was a need for credit in other fields. As a result Con- gress broadened the Corporation's functions considerably. For example, additional legis- lation gave it the authority to purchase pre- ferred stock of banks and insurance com- panies and the capital stock of agricultural credit corporations and national mortgage associations; to make loans to business enter- prises, mining interests, agricultural im- provement districts, and public school au- thorities, and to assist in financing the con- struction of public works and self-liquidat. ing projects. .
A4214 During this early period (1932-38) the work accomplished by the Corporation was of definite aid to the economy. Most nota- ble, of course, was the assistance rendered banks In this period, loans aggregating $1,300,080,000 to 5,816 going banks were au- thorized, of which $1,100,000,000 was used. Although 2,128 of these institutions failed after receiving aid, the remainder, or 3,688, were enabled to continue. In addition, the Corporation purchased a total of $1,100,009,- 000 of preferred stock, capital notes, and debentures in 6,139 banks. Loans were au~ thorized to 2,773 closed banks, and durmg this period $984,000,000 was made available to these types of institutions for distribution to depositors. Many other sections of the economy were also aided. Loans were made to railroads, insurance companies, savings banks, and building and loan associations, Considerable assistance was given to States, and school districts which CQ. ‘ee « the construction of many use- tul. projects, such as highways, aqueducts, bridges, housing developments, and schools, THE WAR PERIOD During the defense and war periods, Con- gress again broadened the powers of the RFC in order for it to carry out various pro- grams deemed essential to the national de- fense and war effort. These functions, car- ried out maimly through subsidiary com- panies, included financing plant conversions and construction, providing war-production facilities, acquiring critical and strategic ma- terials, paying subsidies deemed necessary by other governmental agencies and numer- ous other undertakings. During 1947, these wartime powers were terminated and at the present time all of these activities except the operation of the rubber and tin pro- grams have either been liquidated or are in the process of liquidation. CURRENT STATUS Public Law 548, Hightieth Congress, which was approved during May 1948 constitutes the basic legislation under which the RFC presently exercises its loan functions. This legislation, which extended the life of the Corporation to June 30, 1956, set its capital structure, stipulated the purposes for which it was continued and defined its authoriza- tions and lending limits. Capital was set at a maximum of $350,000,000, comprised of $100,000,000 of capital stock, owned by the Treasury of the United States with the bal- ance, $250,000,000, representing surplus. Any surplus accumulated in excess of this amount is required to be paid to the United States Treasury in the form of dividends on its capital stock. As stated in the law the Cor- poration’s primary purpose was defined as follows: “Yo aid in financing agriculture, commerce, and industry, to encourage small business, to help in maintaining the eco- nomic stabllity of the country and to assist in promoting maximum employment and production.” In order to carry out its oper- ations, the Corporation was given a wide range of authority (within certain limita- tions) to engage in the following loan ac- tivities: 1. To purchase the obligations of and make loans, directly or in participation with banks, to business enterprises, including railroads and alr carriers. 2. To make loans to financlal institutions. 3. To subserlbe for or make lonns upon the nonassessable stock of insurance com- panies, or to purchase capital notes or de- bentures of insurance companies. Limit— $15,000,000 outstanding at any one time. 4. To purchase the obligations of or make loans to States, municipalities, vic. cer d+ cle divisions or public agencies. Iii. - +7)),- 060,000 outstanding at any one time. 5. To make loans deemed necessary because of floods or other catastrephes. Limit—$40,- 000,000 outstanding at any one time. ae Ag The aggregate of commitments for all of the above activities cannot exceed $3,500,- 000,000 at any one time. Within the over-all limits there 1s no restriction as to the amount which may be advanced to any one borrower, The specific lending authorities extend to June 30, 1954. Congress also gave the RFC the authority to make loans to or purchase the obligations of businesses engaged 1n prefabricated hous- ing and in large-scale modernized site con- struction of housing. A limit of $50,000,000 in commitments at any one time was placed on this category. Through its only subsidiary, the Federal National Mortgage Association, the Corpora- tion maintaims a secondary market for mort- gages on homes and rental housing projects insured by the FHA or guaranteed by the Veterans’ Administration. By purchase of these mortgages, river fears ect re companies, banksi'¢ : uth live Tab ove tions, additional mortgage credit 1s “made available to regular channels. In addition to the above operations, the Corporation 1s also responsible for the fol- lowing activities: The tin program: In 1947 and 1948 the RFC was directed, by specific legislation, to continue the Government's tin program until June 30, 1951. Under this program the Cor- poration is responsible for the cperation of the Government-owned tin smelter at Texas City, Tex., and for other related activities. Moreover, it 1s required to finance research in tin smelting and processing. The tin program was adopted early in the war in order to insure an adequate supply of this essential material. At the present time op- erations serve to maintain stand-by facilities in addition to providing a source of supply. The rubber program: The Rubber Act of 1948 provided for the maintenance of syn- thetic rubber facilities end required that a minimum amount be produced and con- sumed each year. In addition, it was stipu- lated that research activities in this field should be continued. The President of the United States was given the power to carry out the provisions of this legislation. He, in turn, placed the operating functions in the hands of the RFC, Although the RFC has the authority to run the various Govern- ment-owned plants, they are at present oper- ated mainly by private companies. This program is also designed primarily to provide standby facilities and as such it is an integral part of our defense program, THE CORFORATION-—ORGANIZATION AND LOAN PROCEDURE Operations are carried out through its headquarters in Washington, D. C., and 31 regional agencies located throughout the country. The management is vested in a Board of Directors consisting of five persons appointed by the President of the United States by and with the consent of the Sen- ate. No more than three members are per- mitted to be of one political party. The di- rectors’ salaries are set at $12,500 per annum, while that of the Chairman of the Board is fixed at $15,000 per annum. The process of placing all employees under Civil Service is being completed. Salaries are thus limited by over-all civil service policies. Aside from the Directors, the two top salaries are paid to the General Counsel and to the Special Assistant to the Board of Directors, both of whom receive $12,500 per year. Other sal- aries range up to a limit of $10,330 per an- num. At the end of the last fiscal year, em- ployees numbered about 4,600, of which ap- proximately 3,100 were assigned to the 31 agencies. Requests for loans originate primarily at the regional offices and they are authorized to approve all advances up to $100,000. Com- mitments of $100,000 and over require the approval of the Washington office. In ac- cordance witi the act, certain standards APPENDIX TO THE CONGRESSIONAL RECORD should be met before a loan is approved. It must be shown that the borrower tried to obtain the loan through regular channels, but was unable to obtain the loan on reason- able terms. Moreover, the loans should be of such sound value or so secured as to rea- sonably assure retirement or repayment. In addition, loans cannot have a maturity be- yond 10 years, except im the case of loans to States or other political subdivisions, in which case they may run for 40 years. From the above it is apparent that most of the requests for loans originate from parties who are unable to obtain reasonable terms from private sources. Since this is considered so important, what may be termed unreasonable? Usually, this involves either the rate, term, or collateral. The RFC does not make a loan merely because a higher rate, 1. e, above the RFC 4 percent, us demanded by private sources. It should be shown that for the risk involved, the RFC rate is more in line with comparable risks. Many requests for loans are made be- cause the term (maturity) offered by the private source is not acceptable to the in- dividual business. In practice, the RFC ap- pears more willing to grant longer terms on loans for working-capital purposes. Since the Corporation does not strive to underbid commercial banks in the loan field, it cannot be classified as a true competitor, Moreover, it cannot be said that the RFC accepts just any loan refused by private banks. This is made clear by comparing the number of business loans authorized with the number requested. Although there is a lapse of time between application and ap- proval, it is estimated that roughly 61 per- cent of the business loans applied for during fiscal year 1949 were turned down. Actually, commercial banks are often able to make loans by virtue of the RFC's participation in the transaction. Moreover, through its financial counsel, the RFC advises business concerns on management and financial prob- lems. As a result of this ald, many firms are then able to establish credit lines in private channels. Funds for the Corporation's loaning activi- ties are obtained from its authorized capital and surplus of $350,000,000 and borrowings from the United States Treasury. There is no limit on the amount which may be bor- rowed, although it is clear that the Corpora- tion's lending limits serve as an indirect ceiling. The Secretary of the Treasury fixes the rate on these borrowings, after giving consideration tg the average interest costs on outstanding United States Government marketable obligations. Over the last an~ nounced period, this rate was set at 2 per- cent, CURRENT OPERATIONS The RFC is now one of the largest lending units in the country. On a consolidated basis, outstanding loans and securities held (which largely reflect loans) amounted to $1,250,0C0,000. By comparison, loans and discounts of the three largest private banks in the country at the end of 1949 amounted to $2,£02,C00,000, $1,381,000,0C0, and $1,350,- 000,000, respectively. Business loans: During the fiscal year ended June 30, 1949, the Corporation approved 3,609 loans aggregating 6218,900,000. Danks participated in 1,261 or 36 percent of these loans for an additional $39,600,000. A large number of the loans granted were to small businesses, evidenced by the fact that of the 3,509 loans authorized, about 52 percent were for less than $25,000, and 88 percent were for less than $100,000. The arnounts involvefi, however, reflect a different picture. Of the loans authorized, 93 of them (3 percent) ¢tc~- counted for $200,400,000, or 57 percent of the total amount made available. Neverthe- less, the above figures clearly bring out the fact that cunsiderable assistance was given
APPENDIX TO THE CONGRESSIONAL RECORD to small business. Loans granted during this period were used primarily for expansion of facilities and working capital. Nearly 68 percent of the loans made was to manu- facturing enterprises, while the balance was made to nonmanufacturing businesses. Fublic agency loans: The importance of this activity has declined materially since the depression years of the 1930’s. As of June 30, 1949, outstanding loans and securi- ties of this type amounted to only $30,000,000. More recenily, however, the Corporation ex- perienced a sharp upturn in the demand for these loans and it is probable that they will approach the $200,000,000 limitation very shortly. Catastrophe loans: In the past fiscal year the Corporation declared the existence of 20 emergencies resulting from major disas- ters. During this period 605 loans were made for a total of $3,800,000. A large portion of these advances were made to borrowers in the Columbia River area, where extensive damage resulted from floods. Federal National Mortgage Association: This subsidiary has been very active in pur- chasing home mortgages insured by the Fed- eral Housing Administration or guaranteed by the Veterans’ Administration. During its fiscal year ended June 30, 1949, the Associa-~ tion purchased approximately 63,000 mort- gages having a principal value of $423,500,000. This compared with a net increase in hold- ings of only $46,000,000 during the previous year. It is the Association’s intention to resell its mortgage holdings to financial in- stitutions. Although none were sold up to June 30, 1949, a small number were disposed of since that date. A review of a recent list of offerings showed that 414-percent mort- gages were offered at a premium of 2 points, while the 4 percent liens carried a premium of around one-half to five-eighths of a point. Finances: Operations during the past fiscal year continued on a profitable basis. Con-~ solidated net earnings for fiscal year 1949 amounted to $8,100,000 after deducting $9,- 200,000 as provision for losses. This figure includes net earnings of $2,900,000 resulting from operations of its subsidiary, the Federal National Mortgage Association. These figures do not include the results of the rubber and tin programs. During this period, operations of the rubber program resulted in a net loss of $702,000, which figure, however, included expenditures of $2,300,000 for maintenance and protection of stand-by plants and facil- ities. Operations of the tin program re- sulted in a net profit of about $8,000,000. Total loans and securities held amounted to $1,254,000,000 against which it held $89,- 000,000 as reserves for losses. Other balance sheet items consisted mainly of cash $8,300,- 000, loans to Great Britain and the Philip- pines aggregating $174,000,000, and various other assets amounting to $62,900,000. BOARD OF DIRECTORS, RECONSTRUCTION FINANCE CORPORATION — Harley Hise, chairman; age 60. Democrat; entered Government service as a clerk in 1918. Was examiner, then chief examiner, of the Federal Farm Loan Board. Later, went to the west coast to accept the position of vice president and manager of the Pacific Coast Joint Stock Land Bank of San Fran- cisco. Afterward these banks as a group were liquidated by the Government and he worked in fhis field until 1938. In the inter- vening period he became associated with various real estate firms on the west coast and from 1927-29 was vice president of the American Trust Co. in San Francisco. In November 1940 the Governor of California appointed him custodian of accounts of the Pacific States Savings & Loan Corp. In ad- dition, he was named State building and loan commissioner. The period from January 1943 to July 1947 was devoted largely to personal affairs, after which he was appointed direc- tor of the RFC, Presently he is director of Federal National Mortgage Association; di- rector, Western Pacific Railroad. Walter Lee Dunham, age 68; Republican; early work in the banking field included the position as vice president in the Highland Park State Bank, Detroit, Mich., after which he became vice president of the Dimes Sav- ings Bank, Detroit. He was also president of the Detroit Savings Bank and president of the Detroit Clearing House Association. Ap- pointment to the RFC was made in 1949, Presently, president, Walter L. Dunham Co., Inc.; vice president and director, General Foundry Co.; vice president and director, Bostick Foundry Co.; director, United States Commercial Co. Harvey J. Gunderson, age 44; Republican; graduate of University of South Dakota, member of the bar of that State. Came with the RFC in 1932 as legal counsel and in 1941 made assistant general counsel. In 1937 he was appointed general counsel for the Disaster Loan Corp. In successive stages from 1940-45 he served as assistant general counsel, general counsel, and executive vice president and general counsel for the Metals Reserve Company of Washington, D. C. Ap- pointed a director of the RFC in 1945. Pres- ently, director, Federal National Mortgage Association. Henry A. Mulligan, age 63; Democrat. At the start of his career he was assistant engi- neer Baltimore & Ohio Railroad Co., after which he was a liquidator for the United States Customs in New York. In 1920 he was an auditor with the Federal Reserve Bank of New York, following which he be- came auditor, later chief auditor, of the War Finance Corporation. From 1927-82 he served as examiner, later chief examiner, for the Federal Farm Loan Bureau. He came with RFC in 1932 as assistant treasurer and was later made treasurer. He was appointed a@ director of the Corporation in July 1941, Presently director, Federal National Mort- gage Association. William E. Willett, age 54; Democrat. Early employment was as a bank clerk and from 1920-31 was engaged in the banking and investment business. Appointed a na~ tional bank receiver in 19382 and became a district supervisor for the Comptroller of the Currency in 1933. Came to RFC in May 1934 as an examiner, later became assistant chief, examining division. From 1933-47 he was @ special assistant to chairman of board and in June 1948 was appointed director of Corporation. Presently director, Federal National Mortgage Association. Statistical analysis, Reconstruction Finance Corporation (consolidated basis) [In thousands of dollars] June 30, | June 30, | Tune 30, 1949 1948 1947 Ner Earnmas Before provision for OBSOS.n nen wee wenn cnn e 17, 350 29, 087 83, 900 After provision for JosseS...-------------- * 21, 411 19, 836 Provistons for OS8C8-. nae 7, 676 14, 064 ao = BALANCE-SHEET ITEMS ASSETS a enene manne onan ene 8,268 | 120,263 | 268, 621 ans, securities and related receivables 1) ee 176,244 | 817,818 | 704, 401 Loans to foreign govern- Great Britain.......| 114,001 | 185,162] 187, §36 Philippines......--. }, 003 60, 003 60, 003 to and securities a nennennes 41,839 | 892, 445 , 589 85, 966 2, 146, 062 A4215 Statistical analysis, Reconstruction Finance Corporation (consolidated basis)—Con. [In thousands of dollars] June 30, | June 30, | June 30, 1948 1947 LIABILITIES Capital stock held by S, Treasury_-.-.-- 1 100,000 | 325, 000 325, 000 Surplus_....-.-.-------- 1 250,000 | 559, 320 $51, 901 Reserve for contin- gencies 6, 340 15, 864 j.-.-----.- Notes payable to U. S Treasury (net)-- -| 855, 176 |... 695, 968 Other habilities pay: able to U. S. Govern- ment agencies. ._.-_-- 126, 873 | 284, 729 352, 029 Liabilities to the public. 70, 527 104, 930 214, 480 Special reserves.....-... 12, 517 5, 831 6, 684 Total_._...-.---- 1, 421, 433 }1, 245, 674 | 2,146, 062 1 Decrease from 1948 reflects repayment of $225,000,000 of capital stock and transfer of $207,000,000 of surplus to the U. 8. Treasury, REGARDING FIDUCIARY COUNSEL, INC. 1. Fiduciary Counsel spends approximately half a million dollars annually on financial research and investment management. It is a truth-seeking organization. Its job is to get all of the facts possible which affect business, securities, and the stock market and interpret these facts for the purpose of protecting its clients’ investments, rather than merely presenting what they like to read. It must be 100-percent unbiased in its studies and conclusions. 2. This money is spent and this informa- tion is gathered to protect the investments of less than 100 of the most distinguished families in America. Their investments total over half a billion dollars. This large aggregate fund and the small number of clients permits the most intensive work pos- sible. Naturally, unusual results follow. 8. You mav be helped by reading “Pro- tecting Your Capital Against All Hazards.” Simply request it from Fiduciary Counsel, Inc., 40 Wall Street, New York 5, N. Y. Secretary of Defense Johnson Addresses the Graduating Class at Annapolis EXTENSION OF REMARKS F HON. JOHN E. RANKIN OF MISSISSIPPI IN THE HOUSE OF REPRESENTATIVES Monday, June 5, 1950 Mr. RANKIN. Mr. Speaker, under permission granted me to extend my remarks in the Recorp, I am including an address delivered by Hon. Louis John- son, Secretary of Defense, before the graduating class of the Naval Academy at Annapolis on Friday, June 2, 1950. In that address Secretary Johnson pointed out the fact that the Navy, working harmoniously with the Army and the Air Force, will give our country strength, and with that strength will come peace and honor. The address referred to follows: “The way of an eagle in the air.” “The way of a ship in the midst of the sea.” Gentlemen of the graduating class of the United States Naval Academy, you have chosen a career where you must make it your rimary concern to learn the wonders of these two ways. You have made an admirable start. You have met the rigid, physical, mental and
A4216 moral tests of the United States Naval Acad- emy and have proved your right to take a@ place of honor and leadership in the de- fense of our country. You have gained the privilege of being known for the rest of your lives as Naval Academy graduates, and that is a distinction that will always mean a great deal to you. You have every reason to be proud of that distinction. In evaluating the quality of your preparation for your duties, the Service Academy Board had this to say recently about poth Annapolis and West Point: “The mission of the service academies is to provide undergraduate instruction, experi- ence, and motivation to each student so that he will graduate with the knowledge, charac- ter, and the qualities of leadership required of a junior officer. The Board is impressed by the extent to which the existing acade- mies are achieving the objectives of this mis- sion, particularly in the field of character and leadership.” The full significance of that citation may be more firmly grasped when I remind you that the Service Board included, in addi- tion to the two Academy superintendents, such distinguished American educators as: James P, Baxter, president of Williams Col- lege; Dwight D. Hisenhower, president of Columbia University; Frederick A. Middle- bush, president of the University of Missouri; Edward L. Moreland, executive vice presi- dent, Massachusetts Institute of Technology; George D. Stoddard, president of the Univer- sity of Illinois; and Robert L. Stearns, presi- dent of the University of Colorado, chairman. I know of no more competent judges of edu- cation than these men, either as individuals or as a group and their generous praise of the quality of your training should be a source of great satisfaction to you. The primary mission of Annapolis is to produce well-equipped ensigns for sea, air, and shore duty, but in doing so it is not neglecting qualities of a good education—a familiarity with culture, with literature, and with history, with economics and with gov- ernment. The report of the Teaching and Testing Methods Panel to the Service Acad- emy Board offers its opinion that “Academ- ically, the Academy compares favorably with the best 20 undergraduate civilian colleges in the country.” I welcome you, therefore, not only as ju- nior officers in the Department of Defense, but as educated men in a dynamic world that calls for the soundest and the most courageous thinking. You are entering upon your career at a time when all basic values and even scientific facts are under close scrutiny and unceasing challenge. As offi- cers you will have to meet many vital issues. I heve every confidence that you will do so with an open mind-—that you will search for the truth and find it, and that you will always act upon it with the courage and the integ- rity that have become so much a part of you as a result of your training at the United States Naval Academy. You are entering upon a naval career at a time of great transition, and you will be privileged to play a vital role in the scientific revolution that will unfold itself. Your ability to meet each scientific challenge successfully, the country may take for granted. Revolutionary shifts from sail to steam, from wooden ships to ironclads, from surface to aircraft and submarines, too, are the kind of changes to which the United States Navy traditionally adjusted itself. And no one famillar with the ingenuity of the present generation doubts your ability to adjust yourself to atomic energy, jet power, or guided missiles, Moreover, the quality of your training, and the proficiency you have gained have made you eligible for service not only as officers in the United States Navy, and the United States Marine Corps, but also in the United States Air Force. I have every reason to feel that those among you who have chosen the Air Force as your branch of service will likewise meet all the scientific challenges that will con- front you with a similar degree of success. The fact, let me add, that you are entering the Air Force by way of Annapolis instead of West Point, which has been the customary way in the past, I assure you will prove no bar, of any sort, to your a@vancement, In- deed, such interchange between services is not anything new—for years, and long be- fore unification became a fact, Annapolis ynen have been finding useful, happy, and successful careers among their sister serv- ices. As an illustration, I cite the fact that he Army and the Air Force have had 12 general officers who attended the United States Naval Academy between 1910 and 19290. When the roll of air generals is called in 1930, I am confident that this graduating class will be well represented. Moreover, you will find both in the Air Force and in the Navy, officers who have at- tended neither of our two great National Academies, who will prove themselves equal to any position of responsibility, trust, or authority within the assignment of the serv- ices. Because of their specialized training, Academy graduates are rightfully expected to set a high standard for the entire service, but you will find many non-Academy colleagues who will adapt themselves quickly, and in the long run reach some of the highest ranks. Jn your climb up the ladder you will find that every effort is made to promote men on the basis of merit. Forget about luck as an element in your selection. A few pennies tossed at the base of Tecumseh were never enough to help you when you were a mid- shipman. They will not be enough while you are an officer. In fact, there may be no Tecumseh available for your prayer or appeal. If you devote yourself assiduously to your career, the rest will take care of itself— above all, don’t neglect your studies—for they have only begun, By studies, I mean not only the formal text- book and classroom variety, although you will have plenty of that, too. In fact, the life of the serviceman has become just one school after another. You not only must prove yourself a specialist in some field and more or less of an expert in many others of your own service, but more and more you must show an ability to participate in joint activities with other services and be prepared to take your responsibilities in positions of trust affecting all of our Armed Forces. Unification of our Armed Forces is now a fact, and graduates of the Naval Academy are contributing wholeheartedly toward its full realization. I am not prepared to say that all differences among the services have been resolved or that none will ever arise again. In fact, toward that kind of unlfication none of us aspires. We appreciate that vigorous men with strong loyalties are bound to dis- agree on occasion, but we have a right to demand that ultimately, after adequate dis- cussion, they will get together in the national interest and come to definite decisions that will bind them all. I say without any hesitancy whatsoever that the spirit of unification has become a real and universal force throughout the serv~ ices. The progress made in the year has ex- ceeded our most sanguine expectations. And I am especially pleased to make this state- ment in the presence of your superintendent, Admiral Harry W. Hill. For he, as Director of the National War College, successfully served to inculcate the spirit of unification among a large number of top-flight officers of the Army, Navy, Marine Corps, and Air Force who took the course. Likewise his predecessor as Superintendent of the United APPENDIX TO THE CONGRESSIONAL RECORD States Naval Academy, Admiral James L. Hol- loway, has performed simular useful services in the interest of unification. He never lost an opportunity to promote its cause among you, and you, too, played your part admi- rably. The comradeship, the understanding, the friendships that have grown among Al- napolis and West Point men as a result of the “Camid” joint exercises, for instance, and the exchange of visits between the two academies, in the long run have done much to promote unification, to strengthen the commion effort of all of our services for the establishment of a sound and adequate common defense. Our common defense includes not only our armed might but the spiritual quality of our Amer- ican creed, Gedicated to help man every- where in his struggle against any sinister forces that would deprive him of life, and liberty, and deny him the right to achieve, in human dignity, happiness for himself and his family in the way of his own choice. In your course at the Naval Academy you have been introduced to the study of our Government, and our political and eco- nomic institutions. This study you should continue throughout your life, and the ad- herence to the principles upon which they are based should guide you in your every- day conduct throughout your career. Your study of our Government and a thorough understanding of our democracy will strengthen your faith in our country and enable you to marshal favorably its per- formance and its promise against any of the alien doctrines that would subvert them. We live in a world where communism has mil-~ lions of adherents. Some are Communists by blind conviction; some by compulsion. But there they are—millions of them, and we cannot bury our heads in the sand and deny their existence, or their influence upon the present state of world affairs. In fact, the present size of our own Military Estab- lishment is an example of how seriously na- tions are being affected by the dangers of imperialistic communism. As an educated man, as an officer, you must know and understand the purposes of the threat so that you can help in its re- pudiation as a philosophy and in its control as a military force. The more you study it and set it up beside democracy the more convinced you will become that communism is a retrogressive movement, that it de- stroys freedom, that it is a treacherous de- tour on the great historic road toward indi- vidual dignity, national prosperity, world peace, and security. But you must not only study democracy, you must exemplify it in your conduct. As chosen representatives of American cltizen- ship at its best, you must live democracy. The discipline inculcated here at Annapolis is calculated to raise the standard of your conduct to the highest levels. You are ad- hering to the code, not because you fear you will be punished if you violate it, but because honor, decency, and an appreciation of the right are the dominant principles which gov- ern you. In following the code of American citizenship at its best, you will prove loyal to Annapolis as a worthy alumnus, to your service as an Officer and a gentleman, and to your country as an exemplary citizen and de- fender. You are the heirs of a grent tradition. Those who have preceded you out of these gates into the world of service, have pre- served the freedom of the seas for us and our friends, and have denied them to our enemies. They have given freely of their all to achleve the great mission of the United States Navy, which today remains as significant and as honorable as ever. Under the leadership of those who are at the helm of the United States Navy today and with your own example of devotion to duty and to the ideals of our country, you
APPENDIX TO THE CONGRESSIONAL RECORD and those who will follow in your tradition will continue to perform in new glory the historic and honorable role of the Naval Academy in the defense of our country. America can be confident that the United States Navy, working harmoniously with the other members of the defense family, the Army and the Air Force, will give our coun- try strength; and with strength will come peace and honor. A Call to Conscience EXTENSION OF REMARKS HON. GEORGE G. SADOWSKI OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES . Tuesday, June 6, 1950 Mr. SADOWSKI. Mr. Speaker, under leave to extend my remarks in the Rrc- orp, I wish to include an editorial which appeared in the Christian Science Moni- tor of Saturday, June 3: A CaLL To ConsCcIENCcE A shaft of light has just struck the United States Senate. It was generated by the cour- age of the Chamber’s only woman Member, The conscience and common sense it ex- presses should dispel the miasma of con-~ fusion, suspicion, and fear in which national affairs have recently floundered. We will not try to summarize the simple, moving eloquence of Marcaret Cuasz SMiIrH’s speech, but commend every word to our readers’ attention. The first notable thing about this state- ment and the declaration of conscience by seven Senators is that they put patriotism above politics. They ave concerned primar- ily with the way too many in both parties have played directly into the Communist design to confuse, divide and conquer. They castigate the Truman administration for lack of leadership and complacency about Com- munist infiltration. They denounce Repub- lican leadership for contributing to confu- sion and for political exploitation of fear, bigotry and intolerance. Both parties are responding in political fashion. But we cannot too strongly em- phasize that there is a call to conscience which should be considered first not for its partisan effects but for its ald in conserving basic American values. Mrs. SmirxH’s light pierced behind the facade of current con-~ troversy to point out how basic principles of Americanism are endangered by character assassination. She listed the right to criti- cize, the right to hold unpopular beliefs, the right to protest, and the right of inde- pendent thought. These rights are infringed when their exercise costs any American citizen his repu- tation or his livelihood. Here is one of the tender intangibles in the fabric of freedom which too many Americans are not suffi- ciently guarding in this time of tension. One of the reasons for opposing communism is that it attempts to dragoon thought and speech. But when the expression of inde- pendent or unorthodox opinion lays a citi- ven open to headlined charges of disloyalty and to disgrace and discharge from his job without any proof of guilt, it is time to recognize that the tyranny of totalitarian thought control can be imposed by mob hysteria as well as by Red dictators. Anyone who looks into the long perspective of history to see how human freedom has been won and lost must be touched by this aspect of the Smith appeal. The Senator from Maine underscored it by asking the Senate to do some soul searching. She de- clared it has been made a rendeZvous for vilification, for selfish political gain at the sacrifice of individual reputations and na- tional unity. Certainly members of both parties should be jogged by their consciences when they permit members to use official privilege to persecute individual citizens with impunity. It is this injustice, plus the dangers of in- timidating free opinion by loose charges of communism, plus the damage to America’s diplomatic front against Moscow, that causes this newspaper to oppose McCarthy- ism. We want no whitewashing of the guilty. We insist that Reds be rooted out, but by more efficient, professional methods. We hold no brief for the Truman administra- tion, and feel it has been lax about leaks. We disagree with most of its domestic poli- cies and have criticized its political tactics. But we are convinced that political tactics are causing some Republicans to use Mc- Carthyism in a way to endanger several fundamentals of freedom and to do grave injustice to individuals. This is not a partisan matter, as is proved by the fact that this position has been taken not only by other independent newspapers but by many Republican papers, and now by this important group of Republican Senators. We sincerely believe with them that this is a question of conscience. We believe it calls upon all of us for greater efforts to rise above personal prejudice or petty partisanship, for & new willingness to exercise prayerful citi- zenship. Businessmen, Farmers, and the Brannan Plan EXTENSION OF REMARKS OF HON. WILLIAM LANGER OF NORTH DAKOTA IN THE SENATE OF THE UNITED STATES Tuesday, June 6 (legislative day of Wednesday, March 29), 1950 Mr. LANGER. Mr. President, the Nonpartisan League, which endorsed its candidates on the Republican ticket, is supporting the Brannan plan; and I take pleasure in asking unanimous con- sent of the Senate that an article pre- pared by Representative User L. Bur- pDIcK, which appeared in Burdick’s Maga- zine of May-June 1950, may be printed in the Appendix of the Rrcorp. In my judgment, Mr. President, the above article correctly sets forth what the Brannan plan really is; and I am happy to announce to the Senate that I have been informed that every candidate endorsed by the Nonpartisan League on the Republican ticket is actively sup- porting the Brannan plan. At least, the Leader, the official paper of the Non- partisan League, so states. These candi- dates are as follows: T. H. H. Thoresen, for United States Senator; Usher L. Burdick and Martin Stenehjem, for Con- gress; Frank A. Vogel, for Governor; Ray Schnell, for Lieutenant Governor; Frank Albers, for secretary of state; Berta E, Baker, for State auditor; Albert Jacob- son, for State treasurer; E. T. Christian-~ son, for attorney general; A. J. Jensen, for insurance commissioner; Math Dahl, for commissioner of agriculture and AA217 labor; and William Mills, for public serv- ice commissioner. There being no objection, the article was ordered to be printed in the Recorp, as follows: BUSINESS AND THE BRANNAN PLAN No piece of legislation in recent years is so generally misunderstood as this so-called Brannan plan, It is misunderstood because it has been grossly misrepresented by large business interests. The support price in use now, and the support price under the Bran- nan plan is also misunderstood. The reason and purpose of any support price to agricultural products is not to pro- tect the farmer alone, but to protect all busi- ness in the United States. Keen business- men should be enthusiastic supporters of support prices, for the reason that the de- pression of 1933-34 demonstrated clearly and definitely that when the agricultural belt cannot get a fair price for its products, a chain of events starts that demoralizes the business of the Nation. We remember 26- cent wheat in North Dakota, we remember that this price hardly covered the cost of harvest and threshing. FARM BUSINESS SUFFERED What happened? Local business in North Dakota felt the jar when the farmers had no income. Banks failed on every hand; stores were filled with merchandise but there were no buyers. Soon the manufacturers had their goods piled up in warehouses, but could not sell. When the manufacturers could not sell the goods, they had to stop their mills. Labor then went out by the tens of thou- sands, and at one time in that depression 15,- 000,000 men and women were walking the streets looking for jobs. That was the result of no price for farm products. The depres- sion didn’t stop there, farmers were fore- closed and dispossessed by the thousands be- cause they could not pay their interest. Taxes went right along and thousands more, who didn’t owe a cent, lost their lands through tax sales. See the millions it cost this Government to supply these 15,000,000 people with food, shelter, and clothing. In one appropriation bill alone in 1935 the money for this purpose amounted to $4,000,000,000. Those of us who lived through that depression are deter- mined that it shall not occur again, and without support prices, there is a bright prospect that it will occur again. The present support-price program differs with the Brannan plan in only one particu- lar, although both are supported by the Pub- lic Treasury. The Brannan plan permits agri- cultural products to move to market, and the price received is the market price. At the end of the crop year if there is a loss to farmers by reason of a demoralized market that difference is made up from the Public Treasury. There may or may not be a loss, but in any event the support comes from the Treasury, the same as it does today. A MONEY SAVER 4 man in business, at first glance, says why should I have to contribute tax money to support a bunch of farmers? When he gets over his first flurry of resentment he finds that he is supporting himself and his business. He is preventing a collapse that will destroy all business, from the local mer- chant to the manufacturing plants, and mean the support of idle millions in the labor fied. The cost of this support may not be large—it certainly will be less than the annual cost of supporting 15,000,000 idle people. On our program to support wheat, it has cost the taxpayers nothing, and, in addition to that, the Government has made @ clear profit of $49,000,000. We have lost on potatoes, but that is because there was no production standard available to indicate
AA218 what amount each producer was to be sup- ported on. Besides, we let down the bars and permitted the importation of potatoes from Canada at the request of machine manufac- turers who could see no other way of being paid for machinery sold to the Canadians. The Brannan plan will prevent another po- tato loss such as we have had, Another feature of the Brannan plan is to permit the consumers of America—the over- whelming majority of the people—to pur- chase their products at the market price, If the market is low they benefit. Well, what if they do benefit? In case of a Nation-wide depression poor people and the great bulk average of the Americans become distressed, and some of them will have to have Govern- ment aid which will cost more than any sup- port from the Treasury under the Brannan plan. In the interests of keeping our business healthy, every businessman in North Dakota should support the Brannan plan. Lay aside the prejudices you may have and see if you are not willing to contribute a tax to keep the business from the farm to factory normal. What Reciprocal Trade Is Doing to This Country EXTENSION OF REMARKS HON. J. GLENN BEALL OF MARYLAND IN THE HOUSE OF REPRESENTATIVES Wednesday, May 31, 1950 Mr. BEALL. Mr. Speaker, under unanimous consent to extend my re- marks in the Recorp, I include an ad- dress I made on a subject in which I am very much interested, reciprocal trade: What is meant by reciprocal trade? Is it really reciprocal? How does reciprocal trade tie in with the International Trade Organization, common- ly called ITO? Many people are confused by these terms. So let us define them. Reciprocal trade, in theory, is an excel- Jent thing. It means that we manufacture certain goods, grow certain crops, and we sell them to other countries to keep our fac- tories and our farms in a healthy economi- eal condition. In turn, other countries manufacture and grow various products which we buy. In order to keep these goods and crops flowing freely between countries go that everybody can prosper and there can be a free exchange, we agree with other countries to lower our tariffs so that they can sell in our country. We have operated under this so-called re- ciprocal trade treaty for more than 15 years now and have consistently lowered our tariffs until today they are lower than at any other time for 50 years. Now is this reciprocal trade really recipro- ‘ cal? The answer is “No.” It has brought about a dumping of foreign goods into our markets at prices that make it impossible for our domestic markets to compete. The protection formerly given to our American workers is being wiped out. In spite of this, the State Department has announced that conferences will be held in England begin- ning September 28, for the purpose or dis- cussing tariff concessions on 2,500 items. Seventeen nations in South America, Cen- tral America, Europe, Asia, and Africa will take part. The International Trade Organization, hatched in Habana, Cuba, is another free- trade movement. It has 58 members. Fifty- four of these have already signed up. And this country will have one vote—the same vote, for instance, that little Costa Rica has. These representatives will meet once a year, add up the production and markets of the world and then divide these markets on the basis of population. So we will have to take and like what these representatives say will be our share of the world’s markets. In turn, these countries will flood our country with cheap labor products, and the stand- ards of our living here will go down just as sure as night follows day, if we sign up for ITO. There are so many examples that it is dif- ficult to select even outstanding ones, But let me begin with my own Sixth District in Maryland. The Persian Gulf and Venezuela seem a long way from Maryland, and yet those two countries have had the effect of throwing men out of work in my own district. The Kempton coal mine is shut down, throwing the men out of work. Ten years ago these men were making $7 a day. Now they get $14.75; that is, if they could work. But oil imports have helped put them out of busi- ness. Kempton was one of Maryland’s big- gest mines. It employed 218 men and pro~- duced 1,800 tons of coal a day—enough to load 21 railroad cars. Now, what are these men going to do? What is going to happen to their families? The Vindex mine closed down on March 1. All of you know what happened to Shall- mar. These are not the only sections af- fected. The Georges Creek field near my home town of Frostburg has been affected. That field is the oldest bituminous field in the country. Instead of 6,000 miners em- ployed, there are now only about 2,000 and most of them are idle. The answer lies in these figures. This imported fuel oil, directly competing with coal, totaled 42,000,000 bar- rels in 1946, increasing to 47,000,000 barrels in 1949 from Venezuela alone. But that isn’t all. We are dumping pota- toes while we are importing them from Can- ada cheaper than we can buy them here. We are importing wheat while our wheat bins are overflowing. Agriculture as well as in- dustry is being undersold by cheap labor for- eign markets. Men are losing jobs all over the country because of the so-called recip- rocal trade agreements and now we are con- fronted with further dumping through the conference to be held in London and the In- ternational Trade Organization. The Waltham Watch Co. case is another typical example. In the middle 1030’s, the United States was producing about 53 per- cent of all the fine, high-quality, jeweled watches—before the reciprocal trade agree- ments went into effect. Today about 85 per- cent of our jeweled watches and watch mcove- ments are imported. What has happened? Our well-paid Amer- ican workers have lost their jobs. They have been thrown out of work. They and their families and their communities are suffering. But, equally as important, is the loss of their skills. The watch industry is most impor- tant to our national defense. Thece men worked on fine precision instruments that were vital to our winning the war. Switzer- Jand, which has taken our watch market, did the same kind of work for Germany. What will happen if this cold war turns into a hot war? How will we obtain the necessary pre- cision instruments? I was talking to some of my colleagues the other day about this all-important question. I asked a Member of Congress from West Virginia, “How are your glass and pottery factories getting along?” His answer was, “They are all closed down.” I received prac- tically the same answer from a Pennsylvania APPENDIX TO THE CONGRESSIONAL RECORD Member who told me men were laid off or working part time. All these jobs are pawns in this interna- tional game, Now further tariff cuts are contemplated— textiles, for instance. Now, we have a large synthetic textile plant in my district. What it will mean to those workers’ jobs, I don’t know. There is a further cut in pottery, glass, china, chemicals, rayons, paper, leather goods, clocks, fish products, wines, and dairy products. Knowing that some of these cuts are going to affect jobs in my own district, I certainly am not in favor of these cuts. But we are not the only ones who are suf- fering. The hat manufacturers are in dan- ger. Union officials have warned that the American hat industry is in grave danger and workers face the loss of their jobs. Felt im- ports from Czechoslovakia, one of the iron~ curtain countries, have jumped 300 percent in this last year. And in my own district linen napkins have been picked up in a chain store with the words “Soviet Union” on them. They are selling three for $1. Identical napkins made in the United States sell at $1 or $1.25 aplece. We are fighting a cold war, with a tremen- dous debt and deficit and with a tax load on our shoulders crushing every taxpayer in this country—and yet we are importing from Russia not just manganese that we need for steel, but linen handkerchiefs. We are importing many other products made by slave labor. We have millions of pounds of dried surplus eggs that we can’t even give away. But we are importing dried eggs from China which has gone commu- nistic. We have more butter than we know what to do with, but we are importing butter. Now this reciprocal trade business has been sold to the American people as a means to help our friends and allies get on their feet and help us fight the cold war. We are asked to sacrifice the jobs of our people to help in this global give-away program. Then is it right that our men should be thrown out of jobs, our factories closed, to help those who openly proclaim themselves our enemy? Why are we letting slave-labor merchan- dise undersell the product of our American workers? Is Russia our friend and ally, are Bulgaria, Rumania, Czechoslovakia, Poland, and Com.~ munist China our friends and allies? We have been told that we are buying strategic materials from those countries— things to help us stockpile for our defense. But what are we getting? Furs, shoes, rubber footwear, walnuts, and canned crab meat, among other things. Are we going to furnish our soldiers with fur coats? Right now our domestic fur busi- ness is hanging on the ropas. Is Russian canned crab meat a strategic material? Are we going to feed it to our soldiers? Are walnuts from Communist-controlled Manchuria a secret weapon? Our California nut industry, which is suffering right now, would like an answer to that question. Will rubber overshoes from Czechoslovakia be used for guided missile purposes? We have a law in this country that states we may bar from our markets any goods produced by foreign slave labor. Why isn’t this law invoked? You can cest assured that Russia buys no handkerchiefs or frills from us. And they certainly don’t buy anything that results in unemployment for their own people. I ask you, why do we allow the United States to be made the dumping ground for iron curtain or any other countries? Why do we allow the jobs of our workers to be exported? There is no sense in this sort of competi- tion,