A1180 id not find Germans guilty of this atrocity. ‘These points of circumstantial evidence about the responsibility for the Katyn mas- gacre would seem to be deciaive. First, all Je.ters from the imprisoned officers to their familles ceased not in 1941 when the Ger- mans invaded Bussia but in the spring of 1040. Second, never, until the bodies were discovered, did the Soviet authorities place the responsibility on the Germans by say- ing the prison camp had been abandqned. Third, neither the Soviet Government nor the Communist-dominated regime in Po- Jand after the war made any attempt to investigate the details of the Katyn Mas- faore. Fourth, it is unthinkable that thou- ends of Polish officers would have waited passively to be captured by the Germans if the camp hed been abandoned. In this case there certainly would have been some sure wivors, The completeness of the extermina- ton suggests that there was no confusion and no opportunity for any of the vickims to escape. With characteristic cyniciam the Soviet Government used the discovery of ite own orime as an excuse for breaking off re- lations with the generally recognized Polish Government-in-exile in London. This was in the apring of 1943. The Kremlin stepped up its pursuit of its two main objectives in Poland, The first was to retain almost all th» Polish territory which had been ace quired as a result of Stalin's deal with Hit~- Jer. Tho second was to prepare for the new Poland, mutilated in the East, artificially enlarged in the West, a made-in-Moscow government. Both objectives were achieved with the Boquiescence cr, at most, the very weak op- position of Washington and London. When An Eden, as British Foreign Minister, want to Moscow in December 1941, he found Stalin inclined to demand the recognition @ the annexation of eastern Poland as the price of signing an Anglo~-Soviet treaty alli- ance. A firmly negative attitude on the part of the American State Department faked acceptance of this demand at that a, But the American attitude weakened, ecurlously enough, es the American military position grew stronger, Less ls known about the Tehran Confarence, held at the end of November 1943, than about Yalta. But the comment of a Pollah diplomat of long ex- perience in the United States holds true: “Our territorial integrity wes sacrificed at ‘Tehran, our national independence at Yalta.” ernment-in-extle, upholding Stalin's claim to the so-called Curzon Ling frontier. The factually absurd argument was used that Ruasia had twice been invaded by Germany Poland and was therefore entitled to sevurity. This overlooked the historical truth that at the time of the First World ‘War most of Poland was part of the Russian Mmpire, whfie at the time of the Second ‘Rusata. The ‘Yaita Conference, held in February 10%, placed thes final seal on the betrayal of Poland. Wo representative of Poland was at this meeting. The Polish Gov- in-egie, the successor of the regime ‘with which Great Britain had concluded a dominated puppet government which sn- tered Poland in the baggage trains of the Red army were proved empty frauds by the subse- quest course of events, which led to the steady clamping down of @ routine Com- munist dictatorship in Poland. Apologista for policy of appeasing Stalin which resched its climax ot Yalta adopt two lines of argument. Some con- tend, like the late Edward Stettinius, that Yalta was really a great victory for the West because Stalin made a number of promises which he broke almost before the ink on the Yalta documents was dry. This is about as convincing as sugges that a man achieved # great financial triumph by ac- cepting a large sum of worthless checks. There is also the argument that America and Britain needed Soviet military ald and could not effectively restrain Stalin’s moves in Eastern Europe. This line of reasoning, however, overlooks the fact that the Soviet Union was more at for ite own secu- rity on maintatfiing the coalition than was the United States. There was certainly no valid moral or political reason why the United States and Great Britain should bave actively cooperated in the territorial mutila- tion of Poland and in recognizing a govern- ment that was a complete negation of the Atlantic Charter principles and violently hostile to the West. . ‘Today's headlines from Korea furnish elo- quent, decisive proof that the wartime ap- peasement of Stalin wes a practical fallure as well as a confession of moral bankruptcy, Let us now repudiate the sordid deal at Yalta, Any validity this diagraceful agree- ment may have ever possessed has been lost because the Soviet Government systemati- cally violated all the engagements which it undertock at Yalta. Lets come out with all the weight of the official autherity with the whole terrible truth atout Katyn. Only by such action can we show that we turned our backs ance for all on the policy of appease- ment which hes borne such bitter fruits for our dead and wounded in Korea, Wage Controls EXTENSION OF REMARKS HON, MELVIN PRICE OF TLLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, March 5, 1951 Mr. PRICE. Mr. Speaker, under leave Stupidity and Greed,” written by Mr. H. £4. Bradley, president of the Interna- tional Chemical Workers Union: order will be approved allowing 10 percent escalator clauses and penaion plans, nego- tiate:’ prior to June 1, 1860, will be permitted to stand but any such plans negotiated since APPENDIX TO THE CONGRESSIONAL RECORD June 1 would be taken into account in the 10 percerit formula, If anyone on the resent Doart, or within the administration, Eas the idea that such a “ormuls is conducive to indistrial peace, he should have a psychia- trist teat bis mental capacity. In the period between January and June of 1950 there was no spectacular rise in the cost of living or in wages. When the Korean situation broke in June, however, almost every item of food began to rise in cost by leaps and bounds. This phase was followed by unreasonable and unnecessary price in- creases in almost every other item. No economist in the world can truthfully claim that labor costs had to do with these rising prices because labor did not try to get any unusual wage increases until it was actually faced with the inflationary rise in the cost of Hving. The formula, as it js now being diecussed, can only penalize those workers who renewed thelr contracts tn the normal course of events, and in the norma) manner, prior to June 1, 1950. It would also increase inequities thr out all industries that would, beyond question of a doubt, create Industrial strife such as this country has never known. ‘There has been entirely too much polnt- ing of the finger at the wage earner. The cost of living must be controlied before any fair wage formula can be effective. This means that someane is going to have to have the courage to talk to, and to talk about, the farmer, the wholesaler, and people Jn like positions over whom there is no control Whatsoever at the present time. Wage con- trols have no value whatever tf they are un- workable, unfair, and not conducive to in- dustrial peace. For those gentlemen in Con- gress who frame our lawa, the members of the various boards who have the responai- bility of formulating orders and those of the executive branch of Government who have the authority to sign orders affecting the welfare of the wage earner, I recommend that they do not Jose sight of the fact that a ‘wage restriction imposed upon a wage earner 4s paid by the wage earner himself and that the wage ceiling or so-called parity prices given to tha farmer is paid by the taxpayers which includes all wage earners, I recom- mend that these people do not overlook the fact that almost every wage earner has to Pay in hard cash for everything he uses and every necessity of life, even to the most fun- @amental things. I remind them that the ‘wage earner must buy even the water and the paper for hig necessary toilet while the Lortl above supplies the water to the farmer and Sear, Roebuck still furnishes the paper. If these gentlemen in authority insist on tmposing unworkable and unfatr restrictions upon the wage earner, it will be they, and they alone, who must shoulder the respon- sibiity for any failure in our industrial plans or our stabifization effort, both of which are so vital at the present time. Stupidity in these times ts a luxury and not a necessity, Address of Charles H1. Silver at Beth Lirael Hospital EXTENSION OF REMARKS HON. ABRAHAM J. MULTER OF NBW YORK IM THE HOUSE OF REPRESENTATIVES Monday, March 5, 1951 Mr. MULTER, Mr. Speaker, the fol- lowing ; Charles H. sil- ver, president of the Beth Israel Hospital in New York City, delivered by him at the graduation exercises of the nursing
achool of the hospital on February 28, 1961: As president of Beth Israel Hospital one of my very pleasant privileges is to attend the annual graduation exercises of our school of nursing. It is an experience that I have enjoyed for many years, yet each time I come away stimulated and inspired by what I have seen and heard, For it seems to me that when these young women in white are now ready to take their place as trained experts in the world of medicine, in a sphere where tender care, sympathy, and under- standing play such a great part, we are wit- neesing a phase of human existence that is indeed very noble and beautiful. These young women are the ambassadora of good will of the hospital; they are con- atantly «.t the side of the patients, they are with them at all times and they reflect the relationship between the hospital and those who have come to !t for solace and healing. They must be cheerful without being patronizing, stern without being too force- ful, sympathetic without being maudlin, and reassuring without being deceitful. That is a very difficult job, my friends, and these young women who have finished their train- ing at the nursing sohool of Beth Israel have all these qualities, I am sure, for they have been trained under the direction of one of the ablest women in the nursing profession, I am referring to Miss Clare M. Casey, the head of our nursing school, whose abilities are recognized not only among those in her own profession but by medical men and hos- pital administrators. Those who work with her have the highest respect and admira- tion for her as a nurse and as a human being. She is capably assisted by her two aids, Miss Rose Muscatine and Miss Gladys Scott, and they make a very effective team under whose guidance the nursing affairs of Beth Israel are being carried on. I am sure I reflect the feeling of my associates on the board of trustees when I say we are all very proud of them. I want to take this occasion also to say @ word about our executive director, Dr. Max- well S. Frank, with whom I have had occasion to work very closely. He is recognized as an able hospital administrator and I am sure that I reflect the sentiments of his staff, the members of the medical staff, and our board of trustees when I say that he has rendered highly skillful service to Beth Israel. Our graduation exercises this year have an unusual significance. For we are honored by the presence of the chief executive of our great city, Mayor Impellitteri, who has shown such a deep interest in the hospital activities of New York City. Mayor Impellitteri understands hospital problems. I have heard him discuss them in public and it js gratifying to us as hospital workers to know that we can count on him for encouragement in carrying out broad hospital programs so that the people of our city may be served more efficiently than ever. And speaking of ‘hospital programs, I am sure, Mr. Mayor, that you are familiar with our own expansion plans. We have acquired the adjacent property to our present struc. ture; the plans for new buildings have been approved by the building department but we still face the problem of demolishing some of the buildings which are occupied because the tenants have been unabie to find other quarters. We are, of course, reluctant to do anything that would cause them incon- venience or hardship. But we hope, Mr. Mayor, to begin some of the work this apring. We plan to break ground on the plot immediately adjoining the hospital upon which will be erected a structure to handle out-patients. The pressure of the present facilities of the out-patient department is so great that it is essential that additional quarters be constructed inasmuch as this departrnent handles ambulatory cases. The hospital will APPENDIX TO THE CONGRESSIONAL RECORD be in a position to take care of a greater number of patients. I say this with a full understanding by my associates and myself of the imperative need to carry on this pro- gram to a successful conclusion. We serve one of the most thickly populated sections of our city. I think it is a typically American com- munity for here you can find more than a dogen nationalities living in harmony and friendship side by side and it is this spirit that makes our country so great. As mayor of the city of New York, Mayor Impellitter! presides over the lives and health and wel- fare of 8,000,000 men and women and chil- dren. He holds & public office which is only second in importance to that of the Presi- dent of the United States. May I expresa the fervent hope that he will have the vigor and health to carry on for we now know that he is doing a mighty good job. We have been reading and hearing about the plans for civil defense which the mayor has inaugurated. Not a single loyal Amert- can will fail to cooperate with those who are carrying out the mayor's plans, but there is also need for hard practical work so that the civil-defense organizations of ours will stand on a solid foundation. The stakes are too high to permit mistakes. We must be sure of our ground. In this defense set-up of New York the hospitals must of necessity play a very vival part. Beth Israel has already answered the call and under the direction of the hospital administrators we are working on civil-de- fense plans that will harmonize with those that are being developed by the city. And while I stand here, Mr. Mayor, to greet you at our nurses’ graduation, I want to pledge to you and your entire administra- tion the full and unstinted cooperation of Beth Israel Hospital tn solidifying the civil- defense program. I want to pledge to you the willingness, capacity and experience not only of the administrative staff but of the doctors, the nurses, technicians, and general hospital workers, All of us at Beth Israel hospital w‘l follow through and we stand alert and ready to give the best in us ° May I close by saying how happy I am as president of Beth Israel Hospital to be with you this evening and greet you 1.1 behalf of the board of trustees. A very interesting program has been planned and I am rure you will have a very pleasant evening. None of us knows what is ahead of us in these very critical days. We are a peaceful people and, of course, we shall hope and pray that we will come through these troubled times without heartbreak and misery. But as much as we all desire peace and friendship among the peoples of the earth, we shall not sacrifice our heritage of human dignity and individual freedom by yielding to the ideology and practices of a slave state. I say ugain that we work and pray for a peaceful solution, but if our way of life is threatened we shall be ready to defend it and by that I mean not only those of us at Beth Israel Hospital but all institutions in every Meld of human activity will be pre- pared and alert to uphold our democracy. Thank you, This Nation Founded To Make Men Free EXTENSION OF REMARKS or HON. FRANCIS E. WALTER OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Monday, March 5, 1982 Mr. WALTER. Mr. Speaker, under leave to extend my remarks in the Rac- All81 ord, I include the foliowing editorial from the Bethlehem (Pa.) Globe-Times of February 20, 1951: _THIs Nation Founwom To Make Men Fass For the first time since the American Rev- olution, with the exception of the War Be« tween the States, the people of our country ere faced with a stark test of faith. The con- fiict with world communiam now is not to save the world for democracy, but to repel an enemy who is determined to destroy in our own land the Christian tdeal of human dignity and individual liberty and the politi- cal aystem which upholds that ideal. Our faith and our strength is this ideal. As a Nation, we came through World War II with little discomfort. Living standards have risen to record levels. So has the public debt which is exacting its toll in depreciat- ing money. However, it is evident that devalued dollars have not yet cramped our style. Last year, according to the Commerce Department, United States citizens spent a staggering $1'78,882,000,000. The fabulous “American way” is well illustrated in a cur- rent joke which defines a pedestrian as a motorist who has found @ place to park his car. The list of American “haves” could go on indefinitely. Already there are 8,000,000 television sets in our homes—homes which are equipped with tens of millions of deep freezes, refrigerators, electric stoves, radios, washing machines, ad inflnitum. In retrospect, after nearly two centuries of freedom and the boundless progress that only freedom could have achieved, it would be a wonder if we were not confused When sud- denly confronted with prospect of a fight for actual survival. But the time when we can afford confusion has nearly run out, These words of Lenin, uttered 30 years ago, ring with new significance: “As long as capitalism and socialism remain we cannot live in peace, In the end, one or the other will triumph-— a funeral requiem will be sung either over the Soviet Republic or over world capital~ ism. * * * We have to use any ruse, dodges, tricks, cunning, unlawful methods, concealment, and veiling of the truth.” This is the ruthtess concept, backed by vast military force, which ts confronting America and the world, To meet it we will need more than arms and men. We will have to lay our sights on primary objectives and keep them there, We must forget the adolescent notion that material security is an unquall- fied right. The rights embodied in the American ideal are few and elemental. They include equality of opportunity, freedom of speech and religion, and the protection of private property. They are the tools with which the indvidual may achieve life, libe erty, and pursuit of happiness, In a word, it is time we again understood what this country really stands for. John Dos Passos, the distinguished American au- thor, has said, ‘this country was not founded to furnish glamorous offices for politicians, or to produce goods and services, or hand-outs of easy money. This country was founded to make men free." In the wealth of mate- rial comfort we have enjoyed ac long, we have tended to forget that great truth. Now we must return to the simple fundamenta)——- “This country was founded to make men free.” We face a two-faceted task. We must fight with all we have against our enemies outside. And, while we are undergoing all the sacri- fices and trials that may involve, we must keep our people free. One of the greatest dangers is that wé may grant so much un~ limited authority to the Government that the system of checks and balances which stands between us and tyranny will be per~ manently destroyed. The problem of eco- nomic controls is s perfect exanypie here. They should be imposed only if they are clearly necessary to implement the war effort. Otherwise, we will have control for control's sake—which ts the essence of dictatorship.
Al182 Toen our productive capacity will be crippled and, far more tmportant, we will no longer he a free people—we will have lost the battie. ‘We Americans have come to a climactic phase in the history of the good Mfe, It te our duty to hold together for future genera- tions the framework of freedom which made that good life possible. Labor’s View on Defense Mobilization EXTENSION OF REMARKS HON. MELVIN PRICE OY ILLINOIS IN THE HOUSE OF REPRESENTATIVES Monday, March 5, 1951 Mr. PRICE. Mr, Speaker, under leave to extend my remerks in the Recoro, I include herewith an article which ap- peared in the March 1, 1951, iscue of the Machinist, the official weekly newspaper of the International Association of Ma- chinists, on labor's view on defense mobilization: Lapor’s Virw on Deraense Mosi.ization Organized labor, speaking through the United Labor Policy Committee, has been criticizing the way defense mobilization is shaping up. To help IAM members un- Gerstand what has been going on in Washington, the Machinist here answers some of the questions being asked by thoughtful union men and women. Is big business really in control of defense mobilization? It has been up to now, Last December, President Truman granted full authority to Charles BE. Wilson, former president of Gen- eral Blectrio Corp., to get defense production going and to control inflation. Wilson fa Di- rector of Defense Mobilization. My, Wilson has had two principal acaist- ants, Gen. Lucius Clay, chairman of the board of Continental Can Co., and Sidney Weinberg, senior partner of Goldman, Sachs & Co., Wall Street bankers. Under Wilson are Eric Johnston, Director of Economic Stabilization, and William H. Harrison, De- fense Production Administrator. Johnston 4s president of the Motion Picture Producers Association and former president of the United States Chamber of Commerce. Harri- son is president of International Telephone é& Telegraph Co. Most of these men are drawing their salaries from their com- panies—not from the Government. Only Eric Johnston, up to now, has made any real effort to bring labor in to help run his organization. Since labor's protest, how- ever, Mr. Wilson has offered to appoint a Jabor man as his third assistant. What's wrong with business executives do- ing the defense job? Don’t they know the most about production? TT i ie i Es H Won't more business efficiency be a good thing in Government? Norma] business methods may not prove efficient when they are used to govern & democratic people. The job of governing je as different from the job of making & profit as day from night. For exerapte, big businesamen naturatly feel that big pro- ducers are more efficient than small pro- ducers. So far, mobilization plans have falled to recruit the useful production fa- cilities of small business. That is the op- posite of efficiency. It is a waste of an ime portant part of our productive capacity. This is one example of how big business thinking can be wasteful when it is applied to Government. In broader terms, the dol- Jer is what counts in business; human wele fare is what counts in government—hbuman welfare in the home, on the job and on the battlefield. Isn't the attempt to stop inflation a good thing, even though it seems to be unpopular? Labor was one of the firet groups to ask for 8 stabilization program to Sight inflation. Controls are never popular with the group being controlled. But everyone, tnoluding thoce who complain, benefit from stabiliza- tion if the controls are fair and equitable, The present anti-inflation program is based on the idea thet the economy can only be stabtlized by reducing the purchasing power of the great majority of the people. That theory ts the basis of the proposed tax pro-e gram. In addition, industry and public members of the Wage Stabilization Board have vcted for a rigid, inflexible wage order. At the same time, the Office of Price Stabi- lization is allowing prices to continue to rise. Even the price stabilizer admits that prices are going to go up an average of 6 percent in the next few months. This is almost as big an increase es took place from March 15 to December 15, last year, before the freeze, And that down't include what may happen to rents. Is all the shouting just for an extra 2 per~ cent more on wage rates—the difference be- tween the 10 percent voted by industry and public members and the 12 percent asked by labor? . It 1s much more than that. The 2 percent is important. It would mean an average of almost 4 cents an hour to IAM members. But even more important are a half-dozen other sections of the proposed wage order. As it was originally voted, the freeze order would virtually end collective bergaining for millions of union members for the duration. It would prevent the ccerrection of injustices and inequities, Anyone who has had a raise of 10 percent or more since January 1950, would get no more raices. Furthermore, the order cancels raises provided in union con- tracts agreed to months ago—long before the freeze. Under the original order, employees who do not alread- have pension plans and health and welfare benefits, couldn't even hope for them until the emergency 1s over. Pensions are not inflationary. Neither are sound health and welfare plans. Yet, the ‘wage board voted to prohibit all future pen- sion plans and health and welfare benefits unless they are off against the 10 percent raise allowed over the rates of Janu- ary, 1950. In the same fashion, anyone who doesn’t now have a paid vacation, paid holi- days or other standard non-wage benefits would be denied them. How is the wage order going to be en- terced? The law makes it legal for any employer to raise wages beyond what the Wage Board allows. If he does, then he cannot charge off the raises as a business expense on his income tax. Thet is enforcement enough to make any wage regulation stick tight. Pots-+ seed the men become dissatisfied and There is no law against strikes, providing due notice is given under the Taft-Hartley APPENDIX TO THE CONGRESSIONAL RECORD Act. A no-strike pledge bas net even been asked from labor so far. However, if the President declares that a dispute threatens the national safety be can invoke the emer- gency provision of Taft-Hartiey and appoint @ board of Inquiry. Those factfinders can- not even recommend a settlement. After 80 days the men can strike. However, the President has authority to seize the plant and order the men back to work as Govern- ment employees, The company would cone tinue to draw ita profits. What if the men get stubborn and won't go back? Then they face the possibility under Taft- Hartley of loss of their seniority and of discharge. And, if they still won't report back to work? Then presumably Congress could act to give the President the police power to break up their union. Is this the way wage stabilization worked in World War 11? No. The old War Labor Board, for all of its shortcomings, was, flexible and allowed room for bargaining on fringe issues and for correcting inequities and injustices. Organ- ized labor while fer from satisfied was able to accept the formula and support the sta- bilization program. When trouble came, labor helped work things out without use of troops or police, Will the use of police power protect pro- duction? Labor doesn't think so. Labor believes that the order proposed by industry and public members of the Wage Board will hurt production. That ts why labor has been try- ing to persuade the Government to adopt a flexible formula that will allow room for set- tling grievances and hardship cases end give some consideration to the men and women who work in the plants and shops. Is there any danger that a man will be frogon to his job or ordered to take a job he doesn't want? Not at this time. In some industries, the immediate problem for many families is the prospect of a long lay-off. Some manufac-~ turers are being forced to shut down civilian production lines even though no defense orders are ready for them. Suppoce the Russianc attack, will Job con- trol come then? It may. That is the door Mr. Wilson and General Olay are leaving wide open, Gen- eral Olay favored drafting men for jobs in defense plants during World War II, Then, however, labor had a direct voice and a vote on the old War Manpower Commission, Both labor and management representatives on that Commission voted against General Clay's proposal, The manpower problems of World War Ti—and there were seriotis prob- lems—were all solved by voluntary methods, not by force. This time, Mr. Wilson has set up a manpower committee made up entirely of Government officiala to Ax manpower policy. Didn't the country accept controls during World War ff and come out all right? ‘The country accepted controls voluntarily during World War II. Labor and manage- ment had an equal voice in the making of pollcy from the beginning—William 8. Knudsen for industry, Sidney Hillman for labor. True, no group liked the controls over its activities, but in every case controls were made acceptable to the interested groups before they were imposed. No group ‘was asked to make a greater sacrifice than any other. This ts the way a democracy meeta a crite through the yoluntary ac- oeptance controls during an emergency. Bo far, Jt has looked as though Mr. Wilaon intends to impose controls by force this time without regard for any group except Is labor trying to get an advantage for ite
APPENDIX TO THE CONGRESSIONAL RECORD No, It is not, Organized labor has not asked for a single advantage for wage earn. erg over any Other group. On the contrary, labor’s entire struggle is to establish a policy based on equality of sacrifice. On the other hand, union officers are unable and un- willing to help impose upon thelr members a defense policy which they are convinced 4g unfair and unworkable. Labor believes that the present polictes will hinder rearma- ment, that the only policies which can suc. ceed fre those which will convince every American that he is getting the fairest pos- sible break under the circumstances. That has to mean lowering the standards of lux- ury before lowering the standard of living, The Project Is Vital EXTENSION OF REMARKS HON. LOUIS C. RABAUT . OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, March 5, 1951 Mr. RABAUT. Mr. Sp.aker, under leave to extend my remarks, I include an article by the Honorable Charles Saw- yer, Secretary of Commerce, which ap- pears in the February-March issue of the Democratic Digest. In this article the able Secretary gives details on the im- portance of the St. Lawrence seaway and power project. His words will be of spe- cial interest to all Members of Congress at this time when we are once again con- sidering the seaway. The article follows: Tue Prosect Is VITAL (By Charles Sawyer) (In President Truman’s Economic Message to Congress on February 12, he said: ‘Iron ore constitutes one of our most serious po- tential shortages. * * * We should start at once on the St. Lawrence seaway and power project so that imported iron ore can be shipped efficiently by water to the great steel-producing centers of the Middle West. The St. Lawrence project is vital also to bring in a new source of power for industry in the Northeast.” (The article herein, by Secretary Sawyer, gives details on the importance of the proj- ect, Legislation on the St. Lawrence seaway was introduced early in the present session of Congress, and hearings are scheduled for late February and early March.) The essential facts about the St. Lawrence seaway and power project may be summa- rized quite briefly. It is an international dual-purpose project to provide a channel for ocean-going vessels between the Great Lakes and the Atlantic and to harness the tremendous hydroelectric power now running to waste in the Inter- national Rapids section of the St. Lawrence River. Both the electric power and the transportation are badly needed to serve our steadily growing industrial economy and to assure that our defense requirements are fully covered, These are considerations that apply to Canada, our partner in this develop- ment, quite as much as to the United Btates. This is a North American resource which re~ quires development for the industrial and military strength of the Continent. The project will add a fourth coastline, 4,000 miles tn length, to the United States, and add 700,000 kilowatts of dependable gen- erating capectty to our power supply. The cost to the United States ts estimated to be about #600,000,000 at 1948 cost levels. It ean, moreover, be made fully self-ltquidat- ing. The power phase will constitute, after Grand Coulee, the largest single-dam project in the country, but a market is already in prospect for much more power than even this huge project can produce. Coriservative es- timates of traffic on the seaway make clear that it, too, could be made to pay its way through tolls. The project has been under active discus- sion for many yeara and the present plan ts based upon an agreement between the Gov-~ ernment of the United States and Canada reached in 1941. The war caused suspension of the project's consideration, but since 1945 a joint resolution to approve the interna- tional agreement has been offered in every Congress, The President has again recom- mended approval of the agreement; legis- lation to approve it was introduced promptly after the convening of the new Congress, and hearings before the House Public Works Committee are scheduled to begin late in February. It is to be hoped that realistic appraisal of the urgent need for the dual- purpose project will lead to its final approval before summer. PRESENT URGENCY The urgency of the matter was made clear last spring in the course of hearings before the House Committee on Public Works and has been underscored by developments in Korea since that time. The project is of basic importance to the industrial strength of the country and ts thus also .asically im- portant to our military strength. More than this, it has great strategic importance because of the growing dependence of our steel industry upon foreign sources of iron ore. The outlook for iron ore, as summarized by the National Security Resources Board last April, assumed that by 1960 our steel industry’s probable ingot capacity would be 110,000,000 tons. Operation at this level would call for about 125,000,000 tons of ore @ year. Taking into account the maximum output to be expected of Lake Superior sources, of other ore-producing regions, and of taconite development, a deficit of about 25,000,000 tons a year—to be supplied by imports—was expected to develop by 1960, Under present and prospective conditions, this outlook is greatly changed. Ingot ca- pacity of 110,000,000 tons is now expected to be reached, not in 1960, but by the end of this year. By 1960 we may need as much as 160,000,000 tons of ore and of such a total more than 40,000,000 tong would have to be imported. This means that over the next 10 years ‘we must plan to meet a developing depend- ence on imported iron ore which at the end of that time will amount to about one-quar- ter of our total requirements. Unless this large fraction of our fron ore can be as- sured—and the only safe and efficient route of import is from Labrador via the St. Law~ rence—we shall, in time of war, when we need it most, be under the constant threat of having to close down as much as one- quarter of our steel-making capacity. That is a grim prospect to invite through neglect of the opportunity now before us, As for power, the Federai Power Commis- sion estimated last spring, prior to Korea, that, in addition to the expansion of steam~- generating capacity already planned, there would be required by 1960 about 2,700,000 kilowatts of dependable generating capacity in the region of the St. Lawrence. This is nearly four times as much as can be sip. plied by the project on the St, Lawrence, Mobilization to meet military needs will require increased production of aluminum, magnesium, ferroalloys, explosives, chermi- cals and other products which require large quantities of electric power. Accordingly, it ie essential to accelerate programs for in- creasing power-generating capacity, This applies to the steam plants of the private companies and it applies to the hydroelectric A1183. Plante which Federal and State Governments 4re constructing on our great rivers. It ap- plies, in particular, to the St. Lawrenoe proj- ect, for here lies the largeat single unit of undeveloped hydroelectric power in the en. tire country, one, moreover, that has so uniform a flow of water as to be termed an engineer's dream. Here is a power resouroe uniquely associated with a key transporta- tion route, making its complete and inte. grated development an incomparabiy value able achievement. IN THE LONG RUN Important'as it is that we move promptly, through construction of the seaway, to pro- vide a sheltered route for the secure impor- tation of vitally needed iron ore from sources on this continent, we must not over. look the broader requirements of transpore tation which the dual-purpose project on the St. Lawrence would enable us to meet. The volume of traffic that must be carried by our transportation system, by the rall- roads, and over the highways, by air and by water, is steadily growing and under the demands of mobilizing will grow even more Tapidly than we have planned for. We dare neglect none of these means of transporta- tion and particularly we must not neglect the provisions of a deep-water channel that will enable full use to be made of water transport between the Great Lakes and the Atlantic. This is not a question of traffic being taken away from anyone. The railroads today are requesting enormous quantities of steel for freight cars to increase their carrying capac- ity, Substantial freight-car-construction programs have been approved. At the same time, however, we must also increase the capacity of this other vital element of our transportation system. We must enable this great arm of water transport to expand side by side with rail transport, so that our national transportation system may have the capacity, the fexibility, the efficiency that our growing and dynamic industrial cconomy requires. EVERYBODY BENEFITS In viewing the traffic prospects for the seaway, it is important to bear in mind not only that our requirements for total trans« portation are steadily growing, but that, of the traffic to he expected on the seaway, 8 very large proportion will be new traffic, which will not involve tonnage now moving by other forms of transport. The economic development encouraged by this opportu. nity to ship at low cost will tend, in turn, to Increase the volume of goods transport- ed by other carriers. In this connection we must bear in mind how greatly the rallroads have benefited from development along the Pacific Coast, development that would not have reached ite present stage except for the opening of the Panama Canal in competi- tion with them. This benefit from com. petition 1s paradoxical, but genuine, and will, I am confident, prove equally genuine in the case of the St. Lawrence seaway. One feature of the seaway has given con- cern to some. During 4 or 5 months of the year shipping on the Grest Lakes is impos- sible because they freeze over. This will also be true of the seaway. Shipping on the Great Lakes during the open months is nonetheleas tremendous in volume and the traffic estimates for the seaway that have been made by the Department of Commerce make full allowance for the closed season. Because the 7 or 8 months of the open senson extend into the perk weeks of rall- road traffic, there is some tendency for Great Lakes shipping to aid the railroads by lower- ing the traffic peak for which the latter must have equipment ready. This is a minor fac- tor because, for the most part, this seasonal problem is met—and on the seaway would be met in the same fashion—through atorage and stockpiles accumulated during the open
ime to help the ratl- atic volume after the peak was. . The fact that during winter months the seaway would be closed is, therefore, in no way damaging to the railroads; indeed, ita effect would tend to be helpful. OUR NATIONAL STAKE From every viewpoint the 6t. Lawrence seaway and power project is one that we stmply dare not neglect any longer. Much of the opposition bas in the past arisen be- oause of the conviction that both the power and the transportation facilities could be used only at the expense of existing power plants and existing means of transportation. The rapid growth of our need for electric power has quite effectively brought a core rection of this view so far as power is con- cerned. It should be apparent by now that in transportation, too, our needs are steadily expanding, so that the effect of expanded Great Lakes shipping will be to afford greater balance and flexibility rather than reduce the extating traffic of competing carriers. In- cidental local adjustments will undoubtedly be necessary in the short run, but they are 80 minor as to be wholly offset by the broader advantages that will be gained. In dollar terma the project can be made to pay ite own way, but under mobilization that is not neceesarily enough. The advantages it would bring must not be bought at too high a cost in materials or manpower, both of which are tight and will grow tighter. Fortunately, this project, huge as it is, will during its construction take no more than One-third of 1 percent of our annual sup- ply of any of the principal materials going into it and will teke the labor of hardly more than one one-hundredth of 1 percent of our civilian labor force, The St. Lawrence seaway and power project goes to the very heart of our country's eco- Romic and military strength. That is why Americans in every section and every locality should seek to have its construction author ized and begun as promptly as possible. 7 E Hi g Book Postage EXTENSION OF REMARKS or HON. GEORGE P. MILLER OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Monday, March 5, 1951 Mr. MILLER of California, Mr. Speaker, last week the President sent Congress @ message on postal rates which was remarkable for balanced statesmanship and clarity of expression. In this message the President called attention to the long-standing discrimi- nation against books which exists in the present postal-rate structure and which will be intensified if the Interstate Com- merce Commission grants the applica- tion by the Postmaster General which is now pending and which the Postmaster General made in accordance with a di- Dlemental appropriation bill of 1981 Plemental appropria , I have long felt that all users of the mat should more nearly pay the costs of cartlage. At the same time, however, I welcome the President’s evident destre to equate the rate for books and that for the reading matter portion of magazines, Yesterday's Washington Post carried an excellent editorial on this subject, and I commend it to the attention of those of my colleagues who are con- cerned with the postal-rate problem, as well as to all Members who feel as I do that our free institutions depend in a great degree on the maximum use by the public of good books. Boox Posracz In his message to Congress recommending increased postal rates, the President pointed out what he called “a startling discrimina- tion" in the treatment accorded books as compared with newspapers and magazines. From the earliest days of the Republic, news- papers and magazines have been carried through the mail at a rate so low as to entall & generous subsidization on the theory that they would contribute to public education and enlightenment. Olassified as second. class material, they are required to pay only 1% cents a pound without regard to dis- tance on the portion of them devoted to reading matter, plus a graduated rate for the advertising matter in them, rising from 1% cents a pound, for distances up to 150 miles, to 7 cents a pound for distances over 1,800 miles Booka, clacsed as fourth-class material, ere charged 8 cents for the first pound, 4 cents for each succeeding pound. More- over, the Post Office Department has asked the Interstate Commerce Commission to raise this rate to 10 cents for the first pound and 6 cents for each succeeding pound; and book packages over 10 pounds in weight would be required to pay the much higher regular zoned parcel post rates applicable to general merchandise. If these proposed rates are put into force, books—which, of course, carry no advertising matter—would be granted little, if any, subsidy. There is a striking anomaly in this con- trast. Books, as the President observed, “are surely a3 important as newsapepers and maga- agines in disseminating information.” As matters stand now, the postage charge on Winston Churchill's memoirs, for example, would be over six times ag high in book form as it would be !f the same material were published in a magazine. This is a form of discrimination which virtually no other country imposes on its book publish- ers—or, to put the situation more accurately, on its book readers. Books, used in schools, colleges, and Ubraries, are an ecsential ele- ment in education—apart from their high value as sources of information and enter- tatnment in general circulation. As we eald in commenting the other day on the postal rates for pertodicals, we think they ought to pay thelr own way when they uae the mails. But every consideration of common sense and fairness dictates that books be put on a parity with newspapers and magazines, Speaker Rayburn 38 Years in House end EXTENSION OF REMARKS ‘HON. HOMER THORNBERRY OY TEXAS IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. THORNBERRY. Mr. Speaker, no man in this Nation is held in higher esteem by the Washington press than the APPENDIX TO THE CONGRESSIONAL. RECORD Speaker of the House, Sam Raysugy, of Texas, This Js a singular honor to be so respected by these discerning men and women who represent our free press. Raymond P. Brandt, chief Washing- ton correspondent of the St. Louis Post- Dispatch, wrote for his newspaper on February 11 an excellent article on the occasion of Mr. Raysurn’s attainment of the record in service as Speaker of the House. Members of this body, and Americans everywhere, will want to read this story about a great American, by one of the Nation's outstanding newspapermen. Therefore, by tnanimous consent of the House, I am inserting this article in the Conaresstowat Recony: [From the St. Louts Post-Dispatch of Pebruary 11, 1951] Sexcaker RayBuRN, 38 Years 1n Hovsr, Says PEOPLE JUDGE RieHT Wen Tuer Have Pacts—Tsxan WHO Has WIELpen GAVEL 10R 8,057 Days, Beating Henry Ciay’s Recon, ALSO Daaws ANOTHER CONCLUSION: “You Cannor Leap Propte BY TayIna To Drive Tuem" (By Raymond P. Brandt) Wasninaron, February 10.—Represent- ative Sam Rarsurm, of Texas, made formal history when he recently broke the record of Henry Clay, of Kentucky, by serving as Bpeak- er of the House of Representatives for 3,057 days. Clay's record stood for 125 years; Rarsvurn, 69 years old and from # district which reelects him almost automatically, is likely to set a mark that will endure for an- other century and a querter, In an exclusive interview with the Post- Dispatch, Raravuan outlined eome of his out- standing experiences and aceomplishments during his 38 yeers in the House, first as a freshmen Representative at the beginning of the Wileon administration; as an oppotition leader in the administration of Presidents Harding, Coolidge, and Hoover; as chairman of the importan: Interstate and Foreign Com- merce Commission; then as majority leader, and finally as Speaker d' the war years of President Roosevelt and now as Speaker in the postwar years of President Truman. Truman has called the ership “the second most powerful office in the Nation,” and Rarsugn will go dowr in history as one of the great figures to hold this office which ranks atatutorially after the Vice Presidency in succession to the Presidency. No other legislator has been more influential in shap- ing the New Deal and the Fair Deal. TWO BASIC CONCLUSIONS Seated in his smal] personal office next to the larger and usually crowded Speaker's room on the second fioor of the Capitol, Raveven told the Post-Dispatch he had come to two basic conclusions during his Govern- Ment service that began with his election as a member of the Texas House of Repre- sentatives when he was 24 years old. “First,” he said, “I believe in people and the soundness of their judgment when they have the facts. ¥ know that 98 percent of the people have more good than bad in them and can be trusted to do the right ng. “My experience with the Spenkership has been that you.cannot lead people by trying to drive them. Persuasion and reason are the only ways to Jead them, In that way ihe Speaker has influence and power in the uee. . “Beoond, I have seen a lot of politicians and OMozholders in my day and is no job 8» big that it should change a man's outlook Qnd manners. When you sees man get stuffy or arrogant because he holds a dig job, it means he was not big enough for the job
APPENDIX TO THE CONGRESSIONAL RECORD when be got it, There is no reason why a man shotid not be able to look you square in the eye and tell you what he will or will not do. Tve found that people respect you if you tell them where you stand. If you shilly- shally and are afraid to say, ‘No’, you'll get into trouble, and there's no reason for any man to get ‘uppity’ in a Government job.” “what about the Presidency?” I asked. “That ts an exeeption,” he replied. “Any man would be changed by the responsibilities and requirementa of the White House.” Raysuzn, who was ane of the President's closest friends when Truman was in the Senate, unwittingly Wlustrated this point Tater when he told how he had called at the White Howse after Truman had succeeded Roosevelt in 1946, Truman had been in Ray- worn’s office when he received word to come to the White House as quickly as possible that April day. “The President and I discussed our long friendship,” Raysurn said, “and how he hoped it would continue, I told him, "You are no longer Harry to me; from now on you are Mr. President.’” AURA OF HISTORIC POSITION As Speaker, Raypurn ie surrounded by the historical aura of the position. In his small office there are portraits of his early prede- cessors—Clay, who Was an active candidate for the Presidency for ® quarter of a cen- tury; James EK. Polk, who became President, and Schuyler Colfax, who was Grant's frst Vice President. This office, with ite red draperies and large gilt mirror that reflects an enormous crystal candelabra, also contains many personal mementos of his long service as well as the inevitable Texas souvenirs, such as a pipe with a carved steers head for a bowl. A photograph of Chief Justice Vinson has a prominent place. It says: “Sam, I love you a lot. Fred.” The Speaker smoked several cigarettes dur- ing the interview, with bald head flushing when he laughed over some minor historical episode. He wore a well-fitting blue suit, enlivened by a dark red tie. He said he felt equal to the task ahead. “My latest medical examination showed that I am in good physical shape,” he seid. “I weigh the same as I did 80 years ago and wear the same size clothes.” HE WALKS, RESTS, DORBN'T WORRY Knowing that he did not go in for any sports, I asked him how he kept fit. “T walk at least 2 miles every day,” he re- piled. “I also stay in bed as Jong as I can. Although I don’t sleep @ hours a day, I know that when I am stretched out in bed, all my insides are relaxed. Also, I don't worry. When I leave Capitol Hill, I leave my work there.” Raysuan likes to attend small parties in the evening, preferably where Texans are t. His greatest delight is to go to a friend's home where he can cook the meal. He will take a lMttle “bourbon and branch water” before dinner but not after. “Sinee I was majority leader,” he disclosed, “Y have not been in a cocktail room. It’s not that J have any prejudice, it's just be- cause I don't think a public official should be seen in such places. I remember going to cocktail parties during the war and secing some high-ranking generals there who had arrived befare I did. I wondered then why they weren't using the time to fight the war. Some people might have some such idea if they saw me in & cocktail lounge.” ME EXPECTS WO TROUBLE As for the present session of Congress, Ray- svan thinks he wil} have little trouble in get- ting Howe approval of President Truman's @eafense program. ‘We'll pass a reciprocal trade agreement extension atid @ good tax bill," he said, “And XCVO—App-~——75 ‘we'll give the President the appropriations for defense and foreign aid. The people are behind our security program and are willing to pay for it and make personal sacrifices in their dally tives, We should pay for this pro- gram as we go. “A lot of people say they are afraid this will bankrupt the country. I don't think so. I remember back in 1932 our national income wae only $39,000,000,000; last year it was up $0 $270,0C0,C00,0C0, That means we can stand heavier taxes. But it also means we've got to keep our national income up.” “Do you think you will have opposition from the teolationists and the economiszers?” he was asked, “The best answer to that,” he replied, “was the vote in the House the other day for the expenditure of €2,000,000,000 for fighting ships and navai aircraft. The roll cal was $65 to 0. That’s a pretty good index of con- greasfonal thinking.” PERBUADER, NO COMPROMISER RaYEvEN appeared to enjoy talking about the early years in which he gained experience to preside over a divided House. Henry Clay was known as the Great Compromiser, Rayzsorn doesn't like, or fit, that description, “T am not a compromiser,” he asserted ve- hemently. “Td rather be known as a per- suader. I try to compromise by getting peo- ple to think my way. Of course, there are times when you haven't got the votes, then you have to make concessions. But in the main, you can get what you want by sticking to your gtins. “Champ Clark, of Missour!, was Speaker when I came to the House in March 1913. I was given a place on the Interstate Com- merce Committee. One of my assignments from the Wilson administration was to get House approval of the firat War Risk Insur- ance Act, which supplanted the old pension system. Later, on my own motion, I secured House passage of a bill requiring Gavernment supervision of the issuance of railroad secu- rities. I modeled this after the Texas ‘blue sky’ law and it was a forerunner of the Roose- velt securities and exchange legislation. “Perhaps the most enjoyable period of service was when the Democrats were in the opposition from 1921 to 1931. The times seemed to be prosperous and under the lead- ership of Jahn Garner we needled the Re- publicans. We had a great crowd in Bank- head and McDuffie, of Alabama, Rainey of Tiinols and, of course, Hull of Tennessee.” MOST DIFFICULT PERIOD IN HOUSE “What do you consider the most difficult period in the House?” the weiter asked. ‘Undoubtedly, it was the years before World War II, when the Isolationists were trying to prevent legislation and approprie- tions for preparedness. The darkest hour ‘was .n September 19¢1—by that time I was Spesker—and the draft extension bill was passed by a single-vote majority.” Rarzurgw won't publicly admit it, but Many obeervers believed his greatest parlia- mentary stroke was his gaveling of that bill through the House before any legislator could change his mind. Bad it filed of passage, thia country’s defense would have been ter- Yibly week at the time of the Pearl Harbor attack. During the pertod from 1981 to 1987, RaY- tion, such as the Railroad Lolding Compan Act, the Securities 4nd Exchange Act, the Rural Electrification Administration Act, the Oxemunications Act and the Public Utilities CORCORAM AlN Comm Rayvevcw's hetpers on much of this legisia- tion were Thomas G. Corcoran and Benjamin ¥. Cohen, the brillitant team thet worked out sidered the ablest man he had known in the House, he countered by saying that he had asked the same question of Speaker Clark many years ago and got a vague answer, “Clark said that if he had to select one man, he would choose Joe Batley, of Texas, who wae a Representative before he went to the Senate,” tavBoan reported. “The o*her man whose intellect he greatly reapected was the Socialist Meyer London, of New York City. EACH ABLE IN DISTERENT WAY “I could not pick out a single man as the ablest because there are various kinds of ability. John Garner was a man of rare intelligence and great industry and he left his imprint as a great Speaker and Vice Pres- ident. The man who impressed me most for breadth of view was Oscar W. Underwood, of Alabama, who would have been President had he come from a Northern Btate. An- other man of great ability was LeGuardia, of New York. For sheer intellectual ability, quite aside from his political views, it would be hard to find a more incisive mind than that of Marcentonio, of New York. As for men who got things done on the floor of the House, no one can ignore Fred Vinson, now Chief Justice of the United States, and Chief Justice Finis J. Garrett, of the Court of Cus- toms and Patent Appeals.” This writer, who has known all of the men mentioned by Rayraurn, will hasard a guess that if they could be polled about the men of ability they had known in the House, they wiuld put Rarsurn the top, if not at the top, of their contemporaries. Rayeoan said be thought the Speakership had most of the power and ax great prestige as it had in Uncle Joe Canr.on’s day. HOUSE Y. Q. HIGHER THAN EVER “Times have changed,” he observed, “and the House te a different body than it was when Cannon was, the boss, The Norris “lame duck” amendment did away with the so-called short, session of Congress fror De- cember to March 4. Under present condi- tions we couldn't afford to have a short ses- ston in which a Member defeated in Novam- ber returned for almost 4 months, and the man who beat him @id not take bin seat until 13 months after the election. It was in the short sesaion that the Republicans pulled off some of their most important legislation. “Our Representatives today are better edu- cated, better informed on tastes, and work harder and longer than in the old days. When I first came here I sometimes got as many a@ 10 letters a day. Now a Congress- man's datly mail runs into the hundreds and thousands of letters and telegrams. Gener- ally speaking, I thin! the intelligence in the House ts higher than I have ever known it before,” “What about the Senate?” he was asked. “A Member of the House,” he replied, “shouldn't comment on the other Chamber. It is something of an index, however, that Genator Tarr is the spokesman for a major- ity of the Republicans over there.” NO Higmen AMBITION Rarvorw said that what success he had had as majority leader and later as Bpeaker could be attributed to the fact that he had had no ambitions above the Speakership,
i186 ' ‘Phe writer seminded him that be had heen @lscussed as s vioe-presidential candidate in Pov the year Senator Truman got that oncr, . “Yea, 1 know there was talk about that but I told everybody that I wouldn’t be se- lected. Frank Walker, who was then Post- master General and chairman of the Demo- cratic committee, talked to me about it. 80 data his successor as chairman, Ed Flynn, and Bd Pauley, Ed Kelly, and Harry Truman. Before the convention, Truman asked me to come out to Missouri to make a speech for Representative Dick Duncan (now a Federal judge) who was having trouble. Truman saith he wanted me to be there so he could say that I was his choice for Vice President. I tola him tbat be had been mentioned for the place and he said he didn’t want it. “YT knew I didn’t have a chance, I came from the wrong State and I think Roosevelt remembered the trouble he had had with Garner. Roosevelt never spoke to me about it and I didn't take the other talk seriously. And I am glad I didn't get it.” ALWAYS A TRAM PLAYER As Speaker and as majority leader, Ray- won has regarded himself as a team player and not ag an individual star. Although he ed and helped pass much New Deal and Fair Desi legisiation, he does not clasai- fy himself as a New Dealer or Fair Dealer. Neither can he be called conservative or a middie-of-the-roader. He was much impressed by Wilson's new freedom and he desorbed the First World War President ag the most detached person I have ever known, “Wilson,” he remarked, “was sheer intel- lect and he once told me that he knew he could never be loved by the people Yet he ‘was working for their welfare all his life with the veal of a covenanter. “Roosevelt was the greatest humanitarian of these times and he held the devotion of the great masses. Although an aristocrat, he put through more social welfare legisla- tion than any other President.” “Did you ever disagree with Roosevelt on bis New Deal program?” “Not publicly,” Ravsunn replied, “I think his two greatest mistakes were his Supreme Court plan in 1987 and his attempted con- gressional purge in 1938. Officially, I had nothing to do with either. IF OUTVOTED, HE GOES ALONG “As I said, I am a tegm player and believe in working within the party organization. Even today, if we go to the White House and the President, the Vice President and the two majority leaders believe strongly one way and I believe the other way, I express my views as wellasIcan. If I am voted down, 4 to 1, 1 go along with the majority.” Most of the votes against Roosevelt and Truman measures have been determined by his Texas background. He voted with the southerners against antidiscrimination legis- lation, the Taft-Haertley Act and has been a principal igure behind the legislation to give the States the rich tideland ol] reserves, He was aieo an active manipulator in fecuring oon onal passage o Kerr na will that ‘Trauma. Ls n vetoed. oe The writer also reminded him that in 1946 he had shown reluctance to run for reelec- tion because he felt the Democrats would lose control of the House and he didn't want to atep down from the Speaker rostrum to the milnority lead on the floor, Ho did run, however, and ha serve as minority leader While Republican Joaxps W. Maxtiv, of Massachusetts, was Apeaker. ‘ ME tant GOINa TO QUIT “T know I talk about i.” Rarzuan agread, “but I copldn's step out then because it Would have been a public confession that I thought the Democrata would lose the Con- gress. I did want to go back to the farm and take it easy for a while, I felt a little that way in 1948, but then it would have been said that I was doing it because 1 thought Truman would be defeated. So I ran again. Those 2 years aa minority leader had one compensation, however. See that silver plaque over there on the wall, the Collier's award for distinguished congressional serv- ice in 1048. Eric Johnston, who headed the award committee that year, told me I would never have won it as Speaker, so it was given me for my minority leadership.” “How about 10529" the writer asked. "It probably will be 1046 and 1048 all over and I'll have to run again. If I retired then, people might say I was doing so because T was afraid the Democrats would lose the elections.” Should the Democrats control the House after the 1952 elections, Raysugn surely would be reelected Speaker and would set a record far beyond Olay's. Such a record would probably stand as long as the Repub- lie retains the two-party system. Tax-Free Expense Accounts EXTENSION OF REMARKS o HON. E. C. GATHINGS OF ARKANSAS IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. GATHINGS. Mr. Speaker, Con- gress must pass tax-increase legislation at this session to support the Armed Forces and curb inflationary pressures, Before asking the people to deny themselves and bear the heavy additional burdens of taxation which the President has asked in his recent message, the Members of Congress and other officials should set the pattern by removing the exemption on expense allowances which they enjoy. Those in authority in the executive and legislative branches of the Government should first repeal the pro- visions of the law calling for tax-free expense accounts, There is no reason that special privileges be enjoyed by any sogment of the people. In this emer- gency all should bear his or her tax load on an equal basis, In the Reorganization Act of 1946, Members of Congress, both Senate and House, were provided an expense account of $2,500 which could not be taxed. Un- der a special act of Congress in January 1949, just prior to the inauguration of President Truman, the President was given a tax-free expense allowance of $50,000 per year, the Speaker of the House a similar allowance in the amount of $10,000 per annum, and the Vice Presi- dent an annual sum of $10,000 for ex- penses, which is tax exempt. I am introducing a bill to repeal these tax-free expense accounts and provide that all such officials pay taxes an these sums, just as any other citizen would pay on his earnings. These public servants have always, and do now, pay taxes on their salaries. It is the allowances for expenses that carry the exemption from Federal tax that should be corrected, With the heavy preparedness program APPENDIX TO THE CONGRESSIONAL RECORD confronting the Nation, the budget for the new fiscal year July 1, 1951, will reach an astronomical figure. In providing the necessary funds, tax increases will, of necessity, have to be made in individual incomes, corpora« tions, and excises. ; Taxes are high now. By increasing them as suggested, such heights are at- tained in many instances that there is little incentive for the Individual to pro- duce or earn more money. Too heavy & tax on individual incomes and corpo- ration earnings may have the effect of sonching the point of diminishing re- Urns, . There should be no objection on th part of the taxpayer to carry his indj- vidual burden in providing the funds that ave needed to keep down aggression to defend the Nation from the threat of Communist totalitarianism, Every good citizen would want to participate and evan make sacrifices in order that the precious heritage which we have in- herited will be safeguarded and pre- served. He wants to know, too—and he has the right to know—that the tax moneys he provides will be spent for the necessary preparedness effort or reason- able support of the departments of the Federal Government, He wants to know without equivocation that his tax dollars will not be squandered. He wants to know—and has a right to know—that ail taxpayers are placed on the same basis and taxed accordingly, He wants to he assured emphatically that no person or group enjoy tax exemption when others in the same category engaged in the same business pay such tax. All businesses for profit should pay the same tax as their competitors. It is a source of satisfaction to me that my bill to tax the untaxed businesses that oper- ate for profit was introduced by me in 1948. It is believed that this bill was the first one on this question introduced in either House of Congress, Perpetually in Favor of War EXTENSION OF REMARKS HON. KATHARINE ST. GEORGE oF NEW yoRE IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mrs. 8T. GEORGE. Mr, Speaker, under unanimous consent to revise and extend my remarks in the Appendix of the Recorp, I include an article by the Honorable Bruce Barton, entitled “Per- petually in Favor of War”: PREPETUALLY IN Pavon or Wan (By Bruce Barton) Abraham Lincoln liked to tel] about a political friend of his in Illinnis, a man named Butterfleld, who was asked at the beginning of the Mexican War tf he were not ‘opposed to it. “No,” exolaimed Butterfield. “I opposed one war. That was enough for me. I am now perpetually in favor of war, pestilence, and famine."
APPENDIX TO THE CONGRESSIONAL RECORD Peet etory dewerws to be mack better known. ‘The goed peapte of america, che adters of war, whould out i out amd paste % (a the tap of their hats to remind them datiy shout wer and hew te prevent it, they topetten proaced on a fande- ‘wscunal etdow, ~wirihe ade oovely beldeveng thewt they ante it, achually aremt trom wer—polttioaliy, fnemeialiy, or emutionaliy—emi sere therefore stboon~ wcicusty Givided tn tier ampasition to it, You oan see wur potitioiams already cast~ the thempolwes in the brave role ef war gov- ernors and wer Senetoys. To them war wobe-getder go Taltaftal as the old ne- llable “Don't change danses dm the malddle of the stream.” War qneatia full erpiayment, millions in Ques for umion deaders, and plenty of dough 4m the take-home envelope. It means hig evaps for fanmers, et guaranteed high prices. To all sorte of routéne-bound business and professione] people it means a tingling re- dpane into the wiee world of adventure and irresponsibility. Doctors and eurgeons at the frent have, dn a tew months, watiety of experience that wauld get came in years of ordinary prac- tioe, plus the tremendous satisfaction of giy- ing TeNef where o is mast bravely deserved and urgently needed. Gollege professors have ® wonderful ohamce to rush to Washington to be oh sorts of important persens at much more money. & young friend of mine, returning from the last war, told me he had decided to study law. “I talked with hundreds of men 4n the Army,” he said. “The two groups that were most eager to get back to their work were lawyers and taxicab drivers.” “Which group was having the best time and hated most to go back?” I asked, unrighteous garner bfllions. Weesed escmpe for the man In the dreary fod, for the trogband with the nagging wife. Buch men ‘would ‘be trees for ‘turning thetr fwackss on their febs end their homes In perce- Resslution by Juraj Qnila District of the Fist Cothelic Slovak Union EXTENSION OF REMARKS oF HON. AUGUSTINE 8. KELLEY OF PEMMECLUANIA THE ROUSE OF SEPRIMMENTAITVES Mt, Rev. Atichact Bazaika, D. D.; end Rt. Rev. Sishoy Pawl Gakiich, BD. 2. wy the people's court at Bratisiava on charges of cofigboration with the west- ema powers of Westmoreland County, Pae., assembled at meoting Wherens the R.. Rev. Bishop Jam Vojinsek, DB. D.; @t. Rey, Mioheal Busalka, D. D.; and the Rt. Bev. Bishop Paul Gojdica, D. D., were tinted by the people's nourt et Bratislava for aliegedy collaborating with the western powers; and Whereas the Kremlin dominated court found the aforesola, Rt. Rev. Bishop Jan Vojtasak, D. D.; Rt. Rew, Bishop Paul Goj- ‘@ich, D. D.; aad the Rt. Rev. Bishop Michael Busalke, D. D., guilty on drummed ap chaiges and were given 26-pear sextence to life im- prisvnment. We, the disiriot offcers of the Juraj Onda istrict of the First Catholic Slovak Union, numbering over 5,000 members tn Westmore- dend ‘County, Pa., vigorously protest against tipe ounifeir, wnjustifiable, and prejudicial trial of the Rt. Rev. Bishop Jan Vojtasak, D. D; Rt. Rev Bishop Michael Buzalka, D. D.; and the Rt. Rev, Bishop Paul Goj- dich, D. D., as violative of the rules laid down by our own Justice Robert H. Jackson for the trial of wer eréattmals and call upon the President of the United States and Con- gress of ‘the United States to protest against the conviction based upon proceedings held by the Pegple’s Court of Czechoslovakia, and be it further: Resolved, That this protest be spread upon the minutes of this our quarterly meeting, be divsemtrated through the various yub- lications asi copy thereef me forwarded to our United States Congressman, Hon. Av- curtime B. Keuicy, at Wathington, D.C. for ‘the purpowe of entering the protest mm the MQnited Htates CowasmasionalL Racaw. Adapted this 85th day of Mebruary A. D. 1981, Greensburg, Pa. MM. J. Vaxcovres, National President, ‘Prawx Witsoe, District President. Summa TF. Uneweaaxr, Seorsiany. Mink-Cout Standards of Honor EXTENSION CY REMARKS or HON. THOMAS B. CURTIS OF MISOURI Tl TRE BOUSE OF REFRERENTATIVES ‘he Ster dees wot kmeow whether Deneid Dawson, the Preshtemt’s whe om geneonec! ALS matters, éitends to appear volumtarily befene the Futhright comma tose urd give Be cn version of the “infrewmee” he is alleged to have exercised with the BIC Board. He may yet intend to do so. YZ he does, it will be a creditable act an his purt. Tt he dees mot de mo, be ought to be fired, In the Star's opimian, « failure to demand an apportuaity to testify and tell his own story, eapectalty tn ‘the Mett of thre aghy quoss already beng @ fy the Fulbright committee, will render him unfit for service White Hosme service under such cirowe- stances woutkd be an affront to public marals, Ms. Dawson es not been changed with any egal act. Mut that Js not the point. The point is that here is.a man occupying a past. tion as ome of the Puesident's intimate ad~ wisers on personnel who has been publicly charged by « responsible committee oF the Senate with having “apparently exercised oonsiderable énflwuence over certain directors ‘of the RFC” in its business of lending public funds, Aovonding ho certain moral standards af dsonor sad public wervice, which ate felt rather than defimend by clecent panple, tis unwritten code would compel Mr, Pewaan to demand the night on hie own initdative to dentify uexder oath before the conmnittes etcl te explain mn complete detadl thm mature of his re! , Hany, wéth the REC, The fact that he has not done so, and ta the premat «atmosphere at the White House 4 does mot seem dkely thet be will, raises gaibite bide today. Under this code a wonmen emsistext seore- nery wt the White Hevee oan wcnegt « 80,500 Bxtiered rogel pastel exit coat Srewe her ee band who, according to his own story, wat yet complete, ds alnamty in debt to a lawyer who tas been active in business before the RFO, and who arranged for the parciuese of the cout, Dnder this cole Maj. Gen. Marry Vaughan, military aide to the Pusddemt, eam continue to serve at the White House after being named by another g committee of the Senate as the man who made possible the “nefarious actiutoles” ef John Maragon, an “outright fixer,” who subsequently has been convicted of perjury. Unater tid: cage a wouran alien trem Aus~ tralla can be brougit to the United States and admitiad to residence hy a special act of Congress, wppreved by the over the protest af the Department of Justice, which could not find tn the records “any farts which would fustify” the begteledion. Bhe turms ap, 000, at thee Witte Mouse, as the secretary of General Vanghan. Onéer this onfie the Proséfiett’s press ne¢- wetery, Josegh Bhort, cam explain that the Preitent “knows of mo evitence of dllegal tafiuemce on the REC hy any member of the emecutive @ranch or the degidlative branch * * *” as tf fhe “Gegaltty” of in- fiuence ‘hed emythtrg to <io with whet ts worrying The Senate vommttvcee—ew the Under this code it is tive Begudity ef aun. duct rather than deteprity wf conduct, which aesumes importance. Loss of honar is ac- eepeeg as perhaps the tnevitatle accampanti- ment of politica, which the putlic Is being tanght to believe is without ‘honor. A accepted as che af the facts of iite. 12. beoomes Snadlly so acoapted, the Baus- wens end their masets of intantry ate one ff the least of the things we have to worry aheout.
Axtss | The Late Honorable Delph E. Carpenter ‘EXTENSION OF REMARKS wr HON, WILLIAM S. HILL OF COLORADO IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr, HILL. Mr, Speaker, under leave to extend my remarks in the Recorp, I include the following resolution: Whereas the Committee on Interior and Insular Affairs has learned with sorrow of the passing of the Honorable Delph E. Car- penter, of Colorado; and Whereas Mr. Carpenter was the commis- sioner for the State of Colorado in the nego~ tlation and execution of the Colorado River Compact; and Whereas Mr, Carpenter has been generally recognised as the father of the Colorado River Compact, both in the conception of this constitutional method of solving the interstate problems on the Colorado River, as well as in the negotiation of the compact iteelf; and Whereas Mr. Carpenter was known and respected throughout the seven States of the Colorado River Basin, and held the deep affection of all those who knew him: Now, therefore, be it Resolved, That the Committee on Interior and Insular Affairs of the House of Repre- sentatives expresses its sorrow on the pass- ing of Delph E. Carpenter, lawyer, statesman, father of the Colorado River Compact, and @ leader of the West; and extends its seym~- pathy and respect to the members of Mr, arpenter’s family. Unanimously adopted by the Committee on Interior and Insular Affairs on March 1, 1051. doun R. Murpocn, Chairman, Attested to: Craupe EB. Racan, Clerk, Commitiee on Interior and Insular Affairs. More Secure? EXTENSION OF REMARKS or HON. AUGUSTINE B. KELLEY OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. KELLEY of Pennsylvania. Mr. Speaker, under permission to extend my remarks in the Recorp, I am including an editorial from the Pittsburgh Catholic entitled “More Becure?’ In this very coneise and pointed argument, it is elearly shown that what we need is more unity and more faith in our professional military leaders: Morx Sxovar? Whether in reaction to Russian Premier Stalin's recent “interview” in which he offered ally ausurance that he doesn’t want war; or because the fighting in Korea con- tinues to show reverses for the Communists; defense ‘geemas to be progressing aetisfactorily; whatever the reason, or come bination of reasons, the fact is evident that this country isn’t so nervcus about the in- ternational situation as it was a few weeks ago. At least there has been @ resumption of “politics as usual” in discussing foreign policy, a free expression of criticism of the Adrninistration’s methods and plans, and a general attitude that no considerations of national safety need interfere with our airing of our differences and disagreements, Thus, arguments are continued as to the number of men we should send to Europe, and as to how definite should be the control of Congress over the Armed Forces, as if hard and fast answers could be established for these questions without putting invaluable information in the hands of our enemies, if war should break out; the opinions of such experienced military men as General Elsen- hower and General Marshall—who happen to have had a leading part in winning the most terrific war in history—are denounced and belittled by individuals who certainly can’t claim any military competence; ab- stract reasons why we should not have “peacetime” conscription and military train- ing are put forward, as if the present days could properly be called “peacetime.” In a way, all of this is a tribute to the mobilization plans that have been under- taken; beyond doubt, they have already es- tablished a feeling that the danger of war is receding. But we ought to be more realis- tic than that; we ought to realize that se- curity musi. rest on a firmer basis than plans, no matter how impressive. If we are to pass safely through this crisis we need far more concern for the common good, more submergence of prejudices and parti- sanship. We certainly cannot yet afford the luxury of disunity. Depletion EXTENSION OF REMARKS HON. ED GOSSETT Or TEXAB IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. GOSSETT. Mr. Speaker, the Ways and Means Committee of the House is now conducting hearings on depletion allowance. My friend and constituent, Mr. R. B. Anderson, of Ver- non, Tex., made a most excellent state- ment before said Ways and Means Com- mittee in their hearings this morning on this subject, This statement should be readily available to Members of Congress and others who wish to be informed in the premises. I am, therefore, inserting it herewith in the Rzcorp: Srarmmrent or R. B. ANDERSON, Brerorr THE Ways AND Mrana CoMMITTEES oF THE Hovss or REPRESENTATIVES, WashiInarom, D. Cc, Mancm 6, 1951 I am grateful for the privilege of again appearing before this committee. I do not remember a period in contemporary history when I believed that the problems of our Nation were more multitudinows or com~- plex, The future is full of mderables, and America is undoubtedly at s point where it must make some fundamental decisions, This Congress must make pvery effort to provide for the security of the Nation. You have a tremendous responsibility in trying to provide the money which that eecurity will cost. We all agree that, ff poasible, we must finance the defense effort from tazatio ' in order to curb inflation, : APPENDIX TO THE CONGRESSIONAL RECORD National security requires that we have an ample supply of the critical materials of war. There are 71 materiais in critical short sup- ply or which are not procurable in the West- ern Hemisphere, For some of these items we are paying a high price. The Armed Services Preparedness Com- mittee in its last report points out that tin has increased in price from 77 cents per pound in May of last year to $1.82, Copper has increased from 19 cents to 2514 cents. Lead has increased from 11 cents to 17 cents. Zinc has increased from 12 cents to 17 cents, Antimony has increased from 22 cents to 42 cents. These are only a few ttems on the critical list. Without them, the whole war machinery slows down. There is no more vital commodity in the world than petroleum and its products. Ol] and gas provide more than half of the energy in the United States. They are indispensable to military preparedness. You are concerned here with a suggestion that you tamper with the depletion provi- sion under which for the last 25 years the oil industry of this country has provided the petroleum necessary for our domestic econ~ omy and for our war machines. You could not be asked to tamper with this provision at a more dangerous or dificult time. Secretary Forrestal $3 years ago testified before the House Armed Services Committee that in the event of another world emer- gency the requirements of petroleum would be nearly double the requirements of World War II. , At the same time, Harold Ickes said, “And I will say further that, in the event of an- other war, we cannot rely on imports, with the possible exception of Mexico, In other words, you will not be able to bring it in by tanker. The airplanes will be so efficient that they will blow every tanker off the surface of the ocean, You cannot depend on that.” The chiefs of the armed services in Jan- uary of this year advised the National Petro- Jeum Council that an additional productive capacity of 1,000,000 barrels of oil per day ia necessary in order to form a minimum cushion for security, Today we are importing 950,000 barrels of oll daily, One year ago we were importing 684,000 barrels. Today, our domestic pro- duction is 5,900,000 barrels daily as compared to 4,300,000 barrels a year ago. For the last quarter of a century the petroleum industry has met every require- ment in war or peace. You gentlemen of Congress and your colleagues who have preceded you made it possible through the wise provision of percentage depletion for us to meet each new responsibility. We can continue to meet those responsibilities if we are permitted to operate under the same wise provisions which this and preceding Congresses have approved as necessary for @ sound petroleum industry. If in these difficult and dangerous times, you destroy the incentive which stems from the current depletion recogrétion and slow down the exploration and discovery of oil, then it, too, may become the next of the criti- cal items for national security. Think of the increased cost alone if this eventuality should arise. We are preparing now to send armies abroad to defend sources of supply for same oritical materials that are not procurable at home. I hope the time never comes when it is necessary to send our sons abroad to de- fend our sources of a part of our supply of Papparently the prinotple of percentage paren’ e e pnercen: depletion is not an issue; however, as cer- tainly as you reduce the established rate which has made posathie the discovery and development of new reserves, you will just as surely lessen the aupply of petroleum and
APPENDIX TO THE CONGRESSIONAL RECORD insecurity and to the erttical character of petroleum and ite products at the most diffi- cult time in the history of the Nation. Just a little nore than a year ago a nation committed itself to 48 air groups. Today we have 04 air groups. A few days ago, Gen- eral Spaatz testified beiore this Congress that it might be necessary for us to have 248 eir groups. Such an Air Force without an adequat fuel supply would be a national tragedy. In 1984 we had a military budget of about 480,000,000. In 1939 the military budget was $1,074,000,000. In fiecal 1952 we will have a budget of €41,500,000,000 for pre- paredness, No one knows how much higher it will go. We are advised by the Armed Services Preparedness Committee that if at current prices we complete our stockpile objective of tin, 1t will cost the American taxpayer hundreds of millions of dollars, During the past year, the coat of rubber has reached a high of 400 percert and today is 360 percent higher than 1 year ago. If Congress had been as wise in the de- velopment of such critical materials as rub- ber which certainly can be grown in the Western Hemisphere as it was in the provi- sion for depletion which made possible the development of petroleum, we might today have neither the fear of scarcity nor the high price in dollars to pay for national security. It is unthinkable in theese days of doubt and danger that serious consideration should be given to the tampering with the deple- tion provision which inevitably means a re- ducing of exploration and a reduction in the flow of oil, The record will demonstrate who is willing to take chances with the national security in these times of preparedness. I know that this committee is of necessity concerned about raising more money. We of this industry agree that, as nearly as possible, we should finance preparedness from current taxes, Every barrel of oil we produce adds to the gross national income and to increased taxa- tion. That is as it should be, but surely let us not engage here in « program that will result in producing less barrels of oll which will mean less tax resources in the vain hope that we might secure additional revenue from a reduction in depletion that will surely mean less production, less taxable income, and leas national security. You will actually force into early retire- ment thousands of marginal wells. You will discourage wildcatting and development. You will have caused to be lost forever as a national resource billions of barrels of oll that can be produced only through the ex- pensive methods of secondary recovery. Oil is a vital necessity to cur domestic economy in both peace and preparedness. Let us not forget that the consumer has a stake in your decision. Passenger cars carrying millions of men and women to work, used last year an average of 626 gallons of gasoline per car or 24,600,000,000 gallons for @ national total. In 1920 the average per capita consumption of petroleum was 4.2 barrels. Today the average consumption ex- ceeds 15.2 barrels and by 1960 it is estimated that each American wiil require 18 barrels. With all the inrrease in demand, gasdline sells at a lower figure today than when percentage de; letion originated in 1986, yet it is a tremendously improved product. While la omly one product of petroleum, it ie an American bie. Of the gasoline consumed in automobiles, 8&4 percent is consumed in carrying men to work, tha housewife shopping, children to and from school, and 'n al] of the other vital purposes of normal American life; only 16 percent is used fur scaial or recreational purposes, you here uut down the flow of oll, you will have taken a step that inevitably will in- crease the price of gasoline, you will have added fuel to the fre of infistion, you will have placed a new burden on American pre- paredness, you will have ignored the Ameri~- ean consumer. The demand for petroieum for 1961 will be one and one-quarter million barrels per day above the daily average demands in 1949. Compere this with the average annual growth in demand for the period 1941-40 which was only about one-fourth of a mil~ lion barrel increase in demand each year. Reserves of liquid hydrocarbons at the end of 1950 were 29.5 bill’on barrels. At the end of 1049 they were 28.4 billion barrels. While we added over a billion barrels to our re- serves the increase in demand was such that our potential supply tn relation to de- mand was not improved. We do no« cite this situation to alarm you, because it is not alarming to us when we can be assured that we will be allowed to exercise every ingenuity and every freedom. and maintain the incentive to replace oil aa rapidly as it is being used. Even with all of the incentive furnished by percentage de- pletion, a review of these ratios during the past several years shows that the industry's discovery of new reserves has kept the ratio between reserves and production almost con- stant despite record-breaking demands for domestic and military purposes. At the beginning of this year, we had only 27% percent of the world’s crude oi] re- serves, but during last year we produced 52 percent of the warld’s total. The barest sort of insurance for eur domestic needs end our military defense demands the wninter- rupted activity of all of the capital, all of the daring, and all of the ingenuity that can be brought to bear in this industry to increase American reserves and productive canacity. If we are to secure the million barrels of daily productive capacity required for na- tional security we must find billions of bar- .Tels of reserve. The industry must invest between 6 and 6 billion dollars of private capital. We will not ask you to furnish it from taxation or frem subsidies. We do ask that you leave alone the established incentive that has traditionally brought capital to the industry and we will require risk capital from hundreds of thousands of people in America to find those indispens- able reserves. The proven reserves, however, are not enough. We must drill and equip the thousands of wells that will make pos- sible the additional daily production. The east Texas field is the largest in the Nation. It has estimated reserves of 2.2 billions of barrels. Kast Texas Js producing 272,000 barrele per day. If we are to have @ productive capacity of an added million barrels per day, we need the equivalent of more than three additional east Texas fields, yet there has been only one eaat Texas field discovered in this country in the past 90 years of exploration. While we are talking about the huge re- sources that are necemary to furnish the additional production we need for security, I should like to comment briefy on some of the specific publicity that has come to some elements of the ofl industry through the investment of individuals whose names have a populer or dramatic appeal. In every business I know there are per- sons who spend their lifetime operating in a single field of activity, and there sre others who become prominent in one Seid and cross investment Kines into others. Actually, the small independent operater fe seeking capital wherever he can find it, Bis efforts do not afford benkabie coliateral, He is looking for anyone who ie willing to tisk bis.money on the operator's judgment. It cannot be otherwise so long as the demand Al189 for increased petroleum reserves ls great, and the independent operator is constantly seeking new avenues for capital. Then there are those who cross tivestment nes and buy producing properties. ft had been suggested that they are simply seek- ing a tax advantage. As & matter of fact, ‘elthough oriticiem haa been directed against these investors, they are not utilizing percentage depletion, but are utilizing cost depletion, which is thetr privilege and which would be the same proe cedure they would utilize if they were ine vesting in any other business enterprise. In the midst of fears for our national se- curity, we are fearful as well of our nae tional economy endangered by inflation. When the Korean situation developed, our productive machinery was operating close to full production with full employment. Then came dramatically incrcased material demands. It was obvious that with all of our productive capacity, we could not im- pose on our economy in a short time the increases that were required to meet the joint Government and private demand for goods and services. During the last ¢ months, currency in circulation and demand deposits of banks have risen more than $8,000,000,000. Private loans have increased during the same period by @8,800,000,000, There was @ wave of war-ecare buying on a large scale. The wage spiral has begun. Price increases both actual and an« ticipated are being passed on to the eun- sumer. For the first time in many years, we are witnessing the flight of the dollar into equi- ties, lands, and other economic hedges. Sav- ings bonds are being redeemed more rapidly than they are being bought. Even now we have not felt the full impact of defense apending, These factorg are accountable in part for the problems we have ‘:ere today. Some of the revenue which this Congress is required to provide stems not entirely from increased domestic and military demands but from our failure to make those great decisions which might have restrair ed the inflationary predicament in which our country is now involved. We must make some of the decisions to contro! inflation now or subject ourselves to even more momentous problems in the days to come, We must honestly confess the known reali- ties of our economy. Our money supply is too large. Its expansion vontinues unabated. American goods and services are, and will continue to be, in short supply. There is onty one real cure for inflation and that is to increase the productive output of the American economic machine to the point that it meets the combined military and domestic demands so far as is humanly possible. To me, each conclusion leading to an achtevement of this objective ls a funda- mental decision which must be made by Congress. We must work longer hours. We muat be willing to lessen our standards of living. We must make full wee of our industrial and agricultural potential. We must do every~ thing that is necessary to increase American production. If you tamper with percentage depletion, you will have reduced the flow of off; you will have slowed down the productive capacity of the petroleum Industry; you will have curtailed the operation of exch industry dependent upon petroleum for tts source of power; you will have laid another stone upon the already crippling burden of inflation. In a time of national 2mergency, you surely cannot want to accept the responsibility of leasenixig production, endangafing our na- tional security, and increasing the infia- tionary problems of out country,
A1199 You are seeking to raise more revenue for two reasons: One reason is to finanop pre- paredness, the other reaeon tg to drain off excess purchasing power in a period of in- flation. During the past 6 months the index of prices of raw materials has increased more than 40 percent. During the past 3 years, the price of crude oil has not increased. If you lower the depletion provision you would not be draining off profits for purchasing power that stem from the national emer- gency becatise in this industry the price of crude of] has remained constant despite the rising costs to the industry. Surely it would be a iniatake to impose taxes of such a char- acter or of such an amount as to discourage or reduce the production of essential raw materials, While high taxes are :nevitable and desir- able, they should be to the greatest extent possible the type of taxes that encourage production of essential materials and dis- courage consumption of goods in short sup- hy. P As we seek to secure additional money to finance preparedness, let us do so by produc- ing more barrels of oll that will yield more tax—not fewer barrels and less tax. I sin- cerely believe that a reduction in depletion will result in a net loss of Treasury revenues. Left alone, there will be a net Treasury gain, This is an hour of decision. The struggle of the free world is to remain free. We are outnumbered, Critical matertals are in short supply and their cost is stupendous. We are preparing to defend our source of supply of some materials with armed forces because of necessity. Through the wise policy of this and pre- cedt:g Congresses, we have had security in pétroleum, We cannot now tamper with the depletion provision which has historically permitted the industry to furnish adequate petroleum supplies and reserves. Surely we would not want to place oil in the same cate- gory as rubber or tin or manganese or other critical materials. History will pass in judg- ment upon any man or any Congress who dares in this difficult hour to take a chance with our national security. Certainly we must have more money to finance our efforts but let that money come from the normal channels of taxation in which we will willingly share and do our part, but let it not come by tampering with the provision that has secured this Nation through two wars and which must secure it in the days to come. When we levy a tax, let it not be one that will stifle production but rather one that will curb inflation as well as provide revenue, If the oll industry is left to its own re- sources with the wise incentive that has made possible its development during the last 25 years, I have no hesitancy in assuring you that the petroleum reserves and capacity of this Natlon will be adequate and secure. It in far better to have and not need than to need and not have. In this hour of decision, we have conf- Gence in the judgment of this committee, Joint Committee on Defense Production EXTENSION OF REMARKS or HON. WILLIAM E. McVEY OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. McVEY. Mr. Speaker, under per. mission to extend my remarks, I should like to include an open letter and reso- lution to the members of the Joint Com- mittee on Defense Production from the Employers’ Association of Chicago. The open letter and the resolution follow: Fearvary 26, 1961. GENTLEMEN: There is widespread feeling throughout the country, and particularly here in the Middle West, that the powers conferred upun the executive branch of the Government by the National Defense Pro- duction Act of 1950 will be employed by that branch to extend its control over the lives of the American people and perhaps beyond the limits intended by the Congress when it enacted the legislation. The public is aware of the many attempts (some successful) that have been made in recent times by the executive branch to dominate the people, both economically and politically. The administrative agencies that have been created by it to effectuate the purposes of Congress have lent them- selves well to the extension of executive in- fluence and control. Even now the Offices of Price and Wage Stabilization are being staffed, in the opera- tive or control sense, by people of political sympathies in keeping with those of the executive and with little apparent regard for ability. This, despite the fact that the operation of these offices will affect the lives of all of the people for an indefinite period of time—perhaps for many years. The Congress did well when it provided for the creation of a Joint Committee on Defense Production in enacting the National Defense Production Act of 1950. Many of us would be less fearful of the posaible con- sequences to the fundamental lberties of all of us if we could be assured that the Joint Committee on Defense Production, of which you are a member, is functioning and to the end that the intent of Congress may be served rather than the ends of political advantage. The attached resolution deals with the foregoing subject and 1s respectfully com- mended to your notice. Sincerely yours, Gorpon L. Hosrerrer, Executive Vice President. RESOLUTION Whereas the National Defense Production Act of 1960 confers upon the President ex- trvordinary functions and powers; and Whereas an unreasonable or arbitrary exercise of such powers may result in in- jury to the general welfare of the people of the United States; and Whereas Congress, in the enactment of sald act, has provided against such possi- bility and to that end has provided for the establishment of a joint congressional com- mittee to be known as the Joint Committee on Defense Production; and Whereas it is the function of said com- mittee to make a continuous study of the programs authorized by said act and to re- port to the Congress the results of its studies (including any defects which may develop in said act) and to make recommendations with respect to the same to the Congress; an ‘Whereas we betieve it to be the function of this committee to guard the people of the United States against an unreasonable or arbitrary exercise of power by the President under the authority given him by this act; and to guard the people against any defects which may develop in said act or in its ad- ministration: Now, therefore, be it Resolved, That the board of directors of the Employers’ Association of Chicago urge that the Joint Qommittee on Defense Pro- duction convene regularly and scrutinize Closely the operation of said act and all pro- grams proposed or initiated under the au- APPENDIX TO THE CONGRESSIONAL RECORD thority thereof to the end that said act may be administered equitably and reasonably and any defects in said act be speedily rectified. Frsrvary 26, 1951. Letter From a Veteran EXTENSION OF REMARKS HON. J. HARRY McGREGOR OF OHI0 IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. McGREGOR. Mr. Speaker, un- der leave to extend my remarks, I am including a letter written by a veteran, W. C. Carter, of Delaware, Ohio. Although I do not entirely agree with all that is in this open letter, I firmly believe that all views on the question covered by Mr. Carter should be ex- plained. The letter follows: Lerrer TO THE Eprror: LENIN’s PROPHECY RECALLED BY WRITER Eptrorn Gazerte: “The United States will spend itself into destruction’-—so predicted Lenin, the high priest of communism—a prophecy that is being rapidly fulfilled. He should have added “and extend” to his pre- diction to have better envisioned our ruin, for we are both overspending and overex- tending our limited resources in manpower and wealth. The tragic Korean debacle has already sac rificed 10,000 brave young Americans, nation- al prestige, and vast military supplies, and is but a prelude to the grim outlook ahead. What should have been the responsibility of the United Nations was ineptly assumed by the United States, with disustrous results. That the United Nations has so far proven to be only a wrangling debating society and a propagator of Russian propaganda and ap- peasement is the fault of our State Depart- ment and the UN Secretary General, Trygve Lie. Since the United States is host to the UN and we are carrying about halt of its ex- penses—compared to Russia's 5-percent con- tribution-—-we have the right to expect that its proclaimed objectives will be advanced, our rights and dignity respected. Instead, confusion reigned, valuable time was wasted, and we were compelled to listen to the long- winded Russian insults, lies, and obstruc- tions. Moral courage was lacking to call the Russian bluff, to place the blame for the Ko- rean aggression squarely where it belongs, If the United Nations ts ever to achieve its purpose, recent events show that it must nave, not a police force, but a complete mili- tary establishment, trained and ready to strike wherever aggression threatens. Con- sidering the reluctance and puny efforts of the leading member nations to aid in Korea or to cooperate in the Atlantic Pact for their own protection, the building of such a mili- tary force would no doubt depend on the United States. The notable exception was Chiang Kai-shek’s offer of 300,000 trained China National troops, declined by the Tru- man-Acheson regime and the UN, evidently fearful of offending Russia and Red China. After 5 years of fruitless palaver and frustra- tion, and in the face of continued Russian threats and aggression, not even a police fo-ce was . When the Korean crisis came last June it was the United States Army, practically alone, that opposed the invading Communist hordes. There are millions of disillusioned, able- bodied men of many nationalities who have
APPENDIX TO THE CONGRESSIONAL RECORD suffered’ under communiam, who ‘would giad- ly Join an international milttary force to Aght Chis monstrous evil. Buch a needed fore would also provide a haven for thousands of homeless retugees whose welfare ts a serious problem. <All they need is the invitation and pledge of protection and security to assure their loyalty to the United Nations. Yor many years france has had such a voluntary military force, the Poreign Legton, which hae rendered Soyel service, although made up from many different nationalities. Instead of pouring more billfans in crecitte and material into Europe to bolster up our uncertain friends, the United Gtates should organige and equip an international military force whose services would be avaliable to the United Nations, A logical recruiting ground would be in Germany—it might even attract @ good part of the Russian Army, Such an organteation could weaken and even even- tually destroy communism, because it would be largely mada up fram the millions who had suffered most under Red tyrauny. W, ©. Carrzn. Domestic Tin Smelting ladustry EXTENSION OF REMARKS HON. CLARK W. THOMPSON OF TEKAG IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. THOMPSON of Texas. Mr. Speaker, the attached article from yes- terday’s Washington Post brings vividiy back to my mind the struggie we had last summer to pass the so-called tin- smelter bill. The United States has only one tin smeiter which adequately refines the types of ore on which the Nation must depen” for its tin supply. The smelter, which is located in my home county at Texas City, Tex., is a Reconstruction Finance Corporation project. Its operation has been efficient and capable. The contract between the Reconstruction Finance Corporation and the operating company was to expire at the end of the current fiscal year. New Jegtsiation during the last session of Congress was necessary to extend the life of the present contracts. I mention the matter now only to re- mind the Congress that the extension of the life of that smelter operation was very vigorousty fought by an organize- tion which frankly stated that their de- sire was only to close the smelter down, ‘They adhered to this position throughout the hearings and the debate even when every defense agency cautioned them that tin was an essential commodity and one in short supply, Fortunately, the sounder and more thoughtful Members of Congress pre- wailed and the life of the smelter was extended for & years. I trust that the will never forget how essen- amelting industry, Attention ts invited bo the article from the Washington Post which follows: Govan on Tor Pace Hr sy Senare Grove The Senate Preparedness Bubconimittes yestertiny proposed that the United States stop Buying tin abroad until some of our own alites cease their price gouging. “We are no longer in a on where we must buy tin at any price,” the subcommittee declared in a report, adding there is more tin in the Untted States now than at the time of Pearl Harbor. The subcommittee noted that control of smost of the workd’s tin ts held ty “a reta- tively few British, Dutch, Belgian, and Bo- livian corporattons, with tnterlocking con- nections across national boundaries.” For 80 years, the report said, those pro- ducers have joined in restricting production so as to guarantee a satisfactory price. Frantic speculation has driven the tin price to nearly $2 a pound from 76 cents just before the Korean war. CONSERVATION URGED The subcommittes called on the State De- partment to get the non-Commuailst warld to allocate tm supplies and fix prices “so that we are not gouged by the mine owners tnd speculators for the privilege of defend- ing them.” The report said the National Production Authority must set up dudustrial rationing and a stringent conservation program to make our current supplies go further. DEVOID OF MORALITY Chairman Lrweon B. Jounson (Democrat, Texas) cohoed his subcommittee's repart. He suid: “The tin price gouging by same of our oldest international friends 1s entirely devoid of morality, The United States neetts tin, but we dont need it so badly that we must bankrupt ourselves by paying anything aad everything other nations try to charge.” The report declared world production of tin in 1041 was 50 percent higher than it is today. The subcommittee said the United States (ts willing to help producer nations expand and even pay premium for tin in excess of eurrent production. Veterans’ Association EXTENSION OF REMARKS HON. J. HARRY McGREGOR OFr oYToO IN THE HOUSE OF REPRESENTATIVES Teesday, March 6, 1951 Mr. MoGREGOR. Mr. Speaker, un- der eave to extend my remarks, I am in- cluding the legislative program adopted by the Regular Veterans’ Association of the United States at their national con- vention, September 23, 1950: imem.arre: Prooram or tae Broviarn Vrr~ smans’ AgsOctATION OF THe Unerren Stara Aporrae sr Ire 1880 Narrowar Oomvawrron NATIONAL DEFENSE 1, The tmmediate enactment of 2 universal Milttary taining lew. 3. Mobilisation of all material resources for war. &. Legislation to effectively curb war infla- tlon the present emergency. & An effective national organization for civilian defense, 6. Creation of a national committee for the coneer vation of netural resources, 6, imuanece by the United States of an ap- medal for service tn the present Korean campaign. 7. Issuance by the United Nations af an appropriate medal for servioe in the present Korean campaign, Ali9! 8. Appropriate United Nations rank for the present commandant of the United Nationa forces In Korea. 9. Relentless war on Communist aggres- sion. 10. Extension of all provisions af the GY Dill of rights to all veterans of the Korean personnel during World War TI, for sll personnel engageti tn the present Korsen campaign—suid 8x! to be retroactive to the beginning of hostilities: and to con- tinue for 1 year after they shall have enced. 12. Free postage for all service personnel during the present Korean campaign. 18, Immediate restoration of the Wortd ‘War 1 allotment system for the d-pendents of all service personnel, 14, Legislation prohibiting strikes or mans work stoppages in time of war or during military campaigns such as the Korean cam- nm. pe Extension of Federal olfi-age and sur- yivora insurance coverage to all members of the Armed Forces, drafted for service, with the Federal Government paying the contei- butions. 16, All commissaries, exchanges, and sbizs'’ service stores to be operated strictly on a nonprofit basis and all merchandise scid In them to be exempt from Feternl and State tax. 17. National Bervice Life Insurance: to be supplanted with a Hat $10,000 death gratuity. INTENNATIONAL RELATIONS 1, Continued support of the United Na- tions 2. Vigorous fulfillment of our international commitments and agreements. 3. Restricted and screened immigration, ¢. Continued cooperation with all nations for the promotéon of internatéonal peace and the development af backward areas. AMERTCANTEM 1, Legialation a: lawing the Communist Party, and all other groups who advocate the overthrow of the Government of the United States by force and violence. 2. Unequivocal denial af the right to vote and to hold public office, or to enjoy public employment, to those who are known to op- pose our form of government. 8. A stronger Voice of America program and greater efforts to penetrate the iron cure tin by educational meriys. 4. Deportation o” all known iien and fore @ign-born Communists. 5. Praise and continued support of the Federal bureau of Investigation far jts effac- tive war on communism and subversive groups. VETERANS 40ND THRIQ PEPER 1, Parity in pensions and disability com- pensation for ali peraons who served hon- orably in the Armed Forces of the United Siateu at any time and parity in ali widows’ pensions, and in all pension payments to the dependents of deceased disabled veterans (8. 727 and H. &. 308). 2. Service pensions for all veterans who were engaged in hostilities against the hoa- tile natives In the Moro Province and in the islands of Leyte and f.maer from July ¢, 1908, to January 1, LOL4 (5. 482 and H.R. $08). 3. Vocational rehabilitation for all honor- ably discharged disabled veterana of the Armed Forces regardless of when the service was performed. 4. Civil-service preference, United States Employment Service preference, and preter- ence on relief projects—when they exist—for all honorably discharged yeterans of the Regniar Establishment. 8. A uniform law, and uniform regula- tiona, applicable to all disabled tubercular
AL192 ‘veterans regardless, of the date of service (aL BR, 1096, 77th Cong.).. . 6. Legislation to reditce to 10 percent the disability requirement for entitlement to edditionsl compensition for dependents of veterans 7, Bervice pensions for veterans of World War J and World War It at age 56, in the amount of #55 a month with an increase of $2 & month for each year thereafter. 8. Legislation to increase pension-income limitation to $2,000 for veteran, or widow without de; ents, and to 63,000 for vet- eran or widow with dependents. 9. Legislation to'exclude commercial in- surance payments from consideration as in- come in determining eligibility for non- service-connected death pensions. 10. Legislation, or an executive directive by the Administrator of Veterans’ Affaire, requiring the Veterans’ Administration to acospt a8 evidence, for rating purposes, ex- aminations made at any hoapital approved by the American Hospital Association. 31, A substantial raise in pay to VA hos- pital attendants, especially to those in men- teal hospitals and contagious-diseass wards tu VA hospitals. 12. Opposing any plan to take from the Veterans’ Administration, or its immediate uriediction and control, any functlon of vernment having to do with veterans. 18, Continued hospitalization, in VA hos- pitals, for non-service-connected disabilities when facilities are available, 14. Out-patient treatment and medication for veterans recelving part III benefits at VA hospitels. 16, An identification card and lapel but- ton to be furnished all service-connected disabled veterans by the Veterans’ Adminis- tration. 16, Resciasion of VA Circular 25, March 7, 1947, prohibiting VA employees from taking part in veterans’ organizations. 17, Legislation requiring the Administra- tor of Veterans’ Affairs to issue explicit in- structions that each and every decision of the VA in its agencies of original and ap- pellate jurisdiction be supported by an ade- quately detailed recitation of the basis of finding of fact and to contain a statement that the policy of resolution of reasonable doubt has been considered. 18. A rating of permanent and total dis- ability for all veterans who have a lung removed. 19. Amendment of R. and P. R. 2676 (b) 4 to permit acceptance of lay testimony in determining service connection for malaria. 20, The establishment of a VA hospital in Franklin County, Va., for Negro veterans, the birthplace of Booker T. Washington. 21, A minimum of two prosthetic appli- ances a year to eligible veterans. 22 A national cemetery in each of the 48 States. 23. Adapted housing for helpless disabled veterans of the Regular Establishment. 24, Adjusted service compensation for vet erans of World War I, and the present Ko- Tean campaign, in the amount of 86 a dey for Toreign service and 63 a day for home service. 25. Legialation authorizing official repre- sentatives of veterans’ organizations, ac- credited by the Veterans’ Administration, to appear before any unit of the Federal Gov- ernment on behalf of any veteran when prop- erly empowered by the veteran to do so. 26, Maintenance of the United States sol- dters' and naval homes in their present locations. : 27, Firat priority for Philippine veterans and thelr dependents in the settlement of all World War I claims, 28. Compensation and pension for service- connected disabilities are rights and not gratuities. The Regular Veterans Aasocia- tion of the United States, therefore, urges the immediate enactment of legislation to subject all decisions of the Administrator of Veterans' Affairs to Federal court review. Frank E. MCOLERNAN, National Commander. State Sovereignty Threatened by Tide- lands Decisions EXTENSION OF REMARKS HON. SARIUEL W. YORTY OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. YORTY. Mr. Speaker, hearings have been concluded in the other branch of Congress relative to Senate Joint Res- olution 20, a so-called interim tidelands resolution introduced by the able and distinguished Senator from Wyoming [Mr. O’Manonsy] for himself and the Senator from New Mexico |Mr, ANDER- son]. The hearings on the resolutions have served to clarify the issue between the States on the one hand, and the Federal Government on the other. Many of the advocates of Federal] ownership of the submerred coasta] lands within the boundaries of the Coastal States have heretofore deliberately befogged the real issue by accusing those opposed to Fed- eral control of being interested only in protecting the rights of oil companies. These companies obtained mireral leases of parts of the submerged lands from the States, who were at the time con- sidered to have full ownership of such lands. This occurred before the Su- preme Court decision in United States against California, which was handed down only a few years agzo-——1947. Actually, the tidelands issue is and always has been squarely between the States and the Federal Government, with the oil companies being merely innocent third parties involved in the controversy only because they developed the submerged areas pursuant to State leases. They did this with the full knowledge and consent of the Federal Government, which unequivocally main- tained, until a few years ago, that the States owned the coastal submerged lands within their borders, and that the Federal Government had no powers over them, except control of navigation and similar national powers which the States have never questioned, and which are not involved in the current controversy. While some of the proponents of Federal ownership were attempting to becloud the issue by using the oil com- panies as “whipping boys,” responsible Federal officials were, at the same time, assuring the oil companies that their rights under the State leases would be respected if the Federal Government was awarded a decision against the States in the Supreme Court. In fact, the At- torney General of the United States said in open court during the trial of the California case, that the President had authorized him to tell the Court that APPENDIX TO THE CONGRESSIONAL RECORD equities acquired by third parties, in reliance on State ownership, would be re:pected. This promise was made on other occasions and has never been re- voked. Nevertheless, the loudest pro- ponents of Federal ownership have con- sistently directed their propaganda at- tacks against the oi] companies, not daring to openly direct their attacks against their real target, the sovereignty of the States. This is the very heart of the controversy. Senate Joint Resolution 20 has, I re- peat, served to clarify the issue becauce it is sponsored by proponents of Federal control; is supported by the administra- tion; and by its terms it definitely vali- dates the oil leases issued by the Siates to the oil companies kefore the decision in United States against California, and also those issued thereafter pursuant to a stipulation between California and the Federal Government. This validating provision has caused the oi] companies holding State leases to support the reso- lution, but the States have refused to do so. Althougt all parties realize that some temporary compromise may even- tually prove necessary, the States are presently unwilling to accept the terms of Senate Joint Resolution 20 as even a proper interim compromise. The fact that the oil company lessees are in favor cf the proposed temporary compromise, while the States involved are opposed to it, does show that the issue ,oes far deeper than the Federal ownership people were willing to admit while they were pretending to be fighting oil com- panies but actually confiscating &tate property—property which the Federal Government conceded to be owned by the States from the founding of the Nation until the filing of the Federal Government's suit ageinst California in 1945 and the decision of the Federal Government’s Supreme Cours in favor of the Federal Government in 1947. This unprecedented derision set a new pattern of conquest or confiscation—a pattern which, if followed to its ultimate conclusion, could mean the complete destruction of the sovereignty of the States. It could obviously be used to confiscate privately owned property as well. The California case is still referred to as the Tidelands case. The submerged coastal lands within the States’ bounda- ries have always been referred to as tidelands, and they still are. Only by a strained, restricted, technical definition of the word “tidelands’” was the Federal Government able to avaid the effect of the numerous decisions of the Su- preme Court squarely holding that the tidelands belonged to the States. By limiting the definition of this word to mean only the small] area covered and uncovered by the ebb and flow of the tides, the Federal Government was able to get around the previous Supreme Court decisions which had unfortunately used the word “tidelands” in its broad and ordinarily accepted sense, In this “insidiously clever manner, the Attorney General of the United States avoided many past precedents and laid claim to the coastal submerged lands, actually
APPENDIX TO THE CONGRESSIONAL RECORD fending them in time of war, and that tnight become involved in the con- duct of foreign affairs. It asserted tts claim by filing an ection in the Supreme Court of the Untted States, the members of which are Federal officials anpointed by the President. These Fetleral offi- cials ruled in favor of the Federal Gov- ernment, and the States’ property was, i sovereignty and private ri¢hts contained in the tidelands decisions. . The first persons to suggest that the Federal Government owned the coastal submerged iands beneath navigable waters were persons who filed claims on the ofl-bearing portions of these lands with the Secretary of the Interior, claim- Ing at the time that these lands were Federal public lands which could be filed on pursuant to the Federal Mineral Leasing Act of 1920,as amended. These claim-jumpers instigated the whole pel the Secretary of the Interior to void State leases and to issue Federal oil 8 : a s ge & ) zg @ E & & fs mination of the controversy between resolution tend that this legislation restoring the States’ rights will again be vetoed, if passed, and that therefore a temporary arrangement is necessary to permit oil development slong the ooast in the inter- est of national defense. The interim legislation validates exist- ing State leases, gives 37!4 percent of the royalty payments derived therefrom to the States instead of 166 percent, and impounds the balance for future dis- Position, It the at the Interior as lessor in place of the States, It provides for tssuance of fu- ture leases by the Secretary who would, of course, need to duplicate existing State agencies in order to carry out his functions under the resolution. The resolution provides that the Sec- retary may suspend or terminate any lease by nraking payment to the lessee in an amount determined by due process of law. This could mean many things and might mean almost anything if a con- troversy arose which would be settled by the Federal Government’s Supreme Court. Although the States would Uke to get the whole controversy settled, they pre- fer to leave it where it is rather than to might endure indefinitely and diminish their chances of forcing a clear-cut deci- sion on the principal issue tmvolved, sovereign units of a federation in which all powers constitutionally remain with the States which are not delegated to the Federal Government by the States. Looking into the unforeseeable tulure, umpossible. decision in tidelands case opens the door to a new which has sidered iniand. been unable to decide where ters stop and others Seen Tn to $30,000,000 im royalties from State leases is impounded, The State ueed its off royalties, for the most part, to carry out its beach develop- acquiring owned lic, not only of California, but of the entire Nation. While this program hes been suspended, the beaches have ine creased in vaiue so that the whole un- dertaking ts jeopardized by Pederal lust for power. Other coastal St States use in- come from all royalties for support their schools. All have strict conserva- tien laws governing development of sub- merged lands. Aside from the desire to expand Ped- eral dominium at the expense of the States, what explanation is there for the Federal executive department's stub- born refusal to restore the coastal sub- merged lands to State ownership? Any State whieh thinks it does not have a vital interest in the eontroverey should atudy this new pattern of expansion with an eye to the future. Today it is oll- bearing submerged lands, but tomor- row? 3 Reconstraction Finance Corporation EXTENSION OF REMARKS aor HON. HUBERT B. SCUDDER ‘OF CALIFORNTA IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. SCUDDER. Mr. Speaker, when necessary duties and functions thet of @ public agency should responsibilities of such functions The Reconstruction Finance Corpora- tion, organized during a period of de- to meet the great financial de- mands of the pubMe, seems to have filled the gap. Banks and other lending in- stitutions In the fleld of private enter- prise now appear adequately able to as- sume this In the opinion of a great segment of our people the RFC has fulfilled that purpose. Now many groups and par- ticularly have I noticed where many newspapers have editorialived in favor of the liquidation of this function as un- necessary. The editorial which T am tn- serting in the Appendix of the Rrcoxn is an example. We should take heed. Possibly this {s an opportunity for the Congress to take action to eliminate a Washington bureau. I personally would Hike to sce our Gov- ernment returned to local ores. ¢iiminating all unnecessary functions The above-mentioned editorial follows: (Prom the Genie Hose (Cara) ot February 16, 1051] emergency loans to nusiness. Nearly 20 yeurs later, the Hoover Commission on Reorganteation
A1194 the Federal Government, recommended that it be abolished. ‘ Te-has become a multimillion dollar lend- fag agency y for the benefit of those with enough uence or presaire on the five-man board to loans often without regard to the financial stability of their en- terprises. The Ltstron Corp. fiasco ts the moet dtriking example. A Reno gambiing establishment and the famous rattlesnake farm ere others. Since banks and other private lending agencies stand ready to loan money on all etiterprises that stand up under investi- gation, tt has naturally followed that many whsound projects which fail to qualify for private credit, turn to the RFC. It was this factor which prompted the Hoover Commission to recommend that the RFO pe abolished, Nothing haa been done about it. Charges of favoritism, Influence, and coercion are bacoming so frequent in Washington that they no longer create enough public indig- mation to influence Congress. But the recent report of Senator Fut- skiour’s Senate Banking Committee on the rankest kind of RFC favoritism leading direct to a White House aide, has churned up more than the customary attention from Congresemén, Taxpayers interested enough in the RFO investigation to send to the banking com- mittee for a free copy of its report (No. 76) will find disclosures which would justify them in demanding that the RFC be not, “reformed,” as some Congressmen suggest, but abolished. They will have further reason to be con- cerned aince President Truman character- ized the report as “asinine” and immedi- ately renominated three of the directors on whom the shadow of suspicion was cast. The reader will find on page 14 of the report, a chart which shows more clearly than words, the “favoritism and influence” charged by Senator Furaricut’s committee. The committee members made the chart for their own clearer understanding of who was related to whom in the maze of testimony. It ia made up of scattered boxes with criss-crossing lines, One box for instance, carries the name of Donald Dawson, an aide to President Truman and a former Direc- tor of Personnel in the RFC. A connecting line runs to the box labeled William Willette, @ Democratic RFC Director. Similar lines run to “expediter” Merl Young and Rex Jacobs, preaident of a Detroit compan; which borrowed $3,000,000 from RPC. Still another line shows Mrs. Donald Dawson as top supervisor of RFC files, and Lauretta Young, ieted as secretary to Presi- dent Truman's secretary, is the wife of Merl Young, the expediter. Personal friendships in the Government, are not subject to oriticlam until public funds ace being dispensed to private firms and the evidence proves that these inter- relationships result in favoritism and undue influence on the lending board. To quote the Hoover Commission report: “Direct lending by the Government to per- sons or ente: opens up dangerous pos- aibilities of waste and favoritiam to indi- viduals or enterprises, It invites political nd private pressure and even corruption.” The RFC has been useful to Congressmen who like to do a favor for a businessman in their digtricts once in a while, and there is no apparent inclination to abolish it. The Senate committee thinks things might be better if a single Governor ts. substituted for the five-man Board, Their reasoning, that he would he less subjec} to pressure and less able to escape responsiblity, is not realistic, ' Reforms cannot kill favoritism and in- fluence in & Government which has been too Jong in office, arid oparates-on a political pres- sure basis for its perpetuation. There are jobs, votes, and big interests that hinge on RFC’s continued operation. Besides, the administration has now put a defense tag on RFC to uphold its continuance. Time was, in the memory of some of us with gray hair, when the Government main- tained a semblance of integrity. The princl- ple of fidelity to the public trust was upheld by the President even though it sometimes required closing his eyes to practices which did not bear the light of day. Exposures brought reforms or honest attempts at re- forms were made. The voters are reportedly writing thou. sands of letters a day protesting the failure of price controls to stop inflation. If they will give an equal amount of attention to the stench which is the RFC, perhaps Oon-~ gress will give it the decent burial which is overdue. Bernice BaTTerTon, Address by Hon. Harry Flood Byrd, of Virginia, at Annual Dinner of Pennsyl- vania Manufacturers Association EXTENSION OF REMARKS HON. EDWARD MARTIN OF PENNSYLVANIA IN THE SENATE OF THE UNITED STATES Tuesday, March 6 (legislative day of Monday, January 29), 1951 Mr. MARTIN. Mr. President, our dis- tinguished colleague, the Senator from Virginia [Mr. Byrp] made an outstand- ing contribution on the subject of the danger of nondefense spending during the emergency in an address which he delivered before the annual dinner of the Pennsylvania Manufacturers Associa- tion, held in Philadelphia, Pa., on Feb- ruary 27, 1951. I ask unanimous con- sent that the address be printed in the Record. There being no objection, the address was ordered to be printed ir the Recorp, as follows: In the coming years—and perhaps for gonerations—we will have two great burdens to carry: On one hand we must make ourselves 80 rhilitarily strong as to protect us from the aggression of communistio nations, and, on the other, we must preserve and fortify our free enterprise system, which, after all is said and done, is the real source of our strength and future security. The free enterprise system is a greater deterrent to world conftict and a more de- peneatle guardian of peace thar a United ations organisation will ever be. It is the only force in the world today that Russia fears, It mrust be preserved. Let us not be deluded: The emergency in which we now find ourselves will exist, in all probability, for many, many years. Today Russia has the timetahie, and Russia has control of the initiative. She began the Korean War—costly to us in blood and trease ure—but Russia has not lost a single soldier, We shall have to live for a long time in a period of crisis and must be on a war alert even though world war II does. not mate- riatize, and pray God it will not. In @ demoo- racy the threat of war over a long period can be nearly as destructive of our economic system es actual war, APPENDIX TO THE CONGRESSIONAL RECORD * If Russta determines on war, she can fix the hour and the place and the day of the con- flict, or she can, for years to come, conduct against us & war of economic attrition, sap- ping our resources and weakening our sys- tem of government, This may be her sinister purpose—I am tnclinud to think perhaps it js—and in the past 5 years she has made great progress in this direction. ‘Then, too, 1f we should become involved in wars with Communiatic China and Com- munistic Russia, tt is not probable that a complete and clear-cut victory can be won against such adversaries—living on vast Jand areas with huge populations-—-auch as was done with compact Germany and com- pact Japan. Russia has succeeded in immobilizing practically all the well-trained troops of the three leading free nations—the United States in Korea; France in Indochina; England in her possessions in Asia. For ourselves we have spent $60,000,000,000 for defense in the past 5 years and have only one well trained division at home, two in Europe and about 226,000 troops fighting in Korea. There we follow the flag of the United Nations but do so nearly alone. In Korea, exclusive of the South Koreans, 06 percent of the fighting is by Americans. Tam not an appeaser. Our future security demands a definite, as well as a very wise, foreign policy. Rusela has such a policy— wise and practical from her standpoint— and has out-generaled us time and time again. We jeopardize our future if we continue to pursue a vague policy of impractical altruism. It must be realistic. We serve neither ourselves nor the free peoples of the world when we undertake burdens beyond our ability to carry and make promises we cannot fulfill, We may be powerful but there is a limit beyond which we cannot go and survive. We cannot go over the world like Don Quixote tilting our lances at every windmill that may have a Communist be- hind it. ‘We cannot go over the world trying to make democrats of people who do not want to be democrats and who do not, in fact, comprehend what democracy means, If first things are to come first, what we need above everything else is an impregnable defense at home. This may determine whether we will survive. As a member of the Armed Services Committee, I pledge to you that I will do all in my power to provide an impregnable national defense. I am for compulsory military training. I am for a trained army within our borders. I am for an Alr Force of 70 groups or more. I am for & radar screen around this country. These things I have been advocating and support- ing for’ years. We do not have them now. We must do our level best to prod those responsible to get them quickly. Will our economic system stand the great burdens we are assuming unless we first set our financial house in order? On January 15 the President appeared be- fore Congress and made this specific pledge: “It (the Government) must practice rigid economy in its nondefense activities, Many of the things we would normally do must be curtailed or postponed,” Yet, a week later he submitted to Congress a budget which has actually increased non- defense spending to the highest level in the bistory of the Nation—whether in peace or war, Not only has he, in the time of our greatest crisis, failed to keep his pledge for a rigid reduction in domestic spending, but the President renews his advocacy of the sodial- tstio measures known as the Fair Deal. Be asks citizens to make deep sacrifices in their daily living, yet he declines to make political sadrifice, by the curtailment or
APPENDIX TO THE CONGRESSIONAL RECORD suspension of measures for the distribution of public funds for nonessential purposes. In my experience of 18 years in the Gen- ate, this message represents the very height of fecal irresponsibility. Unity and the sacrifices necessary to save our country must be a two-way street. They must come fram the Government as well ag from the citizens. Fiseal preparedness is just as vital as mill- tery preparedness. I was greatly disap- pointed in the President's budget. I had hoped he would advocate an austerity budget; cut all nondefense expenditures to the bone; suspend for the duration all social- istic schemes. Instead he actually increased nondefense spending and renewed his sup- port of his socialistic measures—-the Brannan plan, socialized medicine, more socialized housing, expansion of Government-owned industrial production, Increased Federal au- thority over unemployment State offices, Federal aid to education. The estimated deficit under the President's budget is over 816,000,000,000. By saving $7,000,000,000 or €8,000,000,000, new taxation of $9,000,000,000 would balance the budget. If we cut hie total budget by 10 percent we can avoid 50 percent of the total of new taxes he requested. In short, he proposes that the people who support the National Government practice rigid austerity for the preservation of democ- racy and free enterprise, but at the same time, he proposes a Federal budget under which the Government would spend lavishly end extravagantly, as if there were no clouds of grave danger on the horizon, not only for things we could do without but also for schemes which would socialize the food we eat, our health, and the roof over our heads. In these pertious times we are confronted doth with potential military aggression from abroad and potential fiscal collapse from within. We started World War I with a Federal debt of approximately $1.000,000,000. We started preparation for World War IT with a Federal debt of a little over ¢¢0,000,000,000. We started the current preparedness pro- gram with a Federal debt of a quarter of a trillion dollars. Our only advantage over our potential enemies is in the productive ca- pacity of the free-enterprise system. That cannot survive in either Insolvency or an atmosphere of fiscal weakness. Under these circumstances it becomes crystal clear that we must eliminate com- pletely all nonessential expenditures. And not the least of these lie within our domes- tie-civilian programs, including the give- away schemes which have been developed in recent years. We must put Santa Claus im the cold freeze for the duration of the present emergency. I am willing to vote for taxes for national defense, but I do not like the idea of placing great additional burdens on an already overburdened peopie for waste~ ful political spending. What we need is pay as you go by combined economies and, if necessary, new taxes which with economies can be mich leas than the President requests. E-tc Johnston and other leaders say deficit spending ts one of the most inflationary Tactors, Continued deficits encourage trresponat- bility in appropriations and will end tn disaster. You oan never go broke pay ue you go. “Byrds” ov view of the budget ag re- quested by the President: Expenditures, $71,000,600,000; income, $65,000,000,000; defi- Gita, $1€,600,200,000. To pass another “quickie” tax bill of #20 200,900,000 te be followed by another, as tvs promgare, would be a most Two so-called ad eaick note rats surendy been enacted the past severa’ mouths. Including these two tax bitle, thd’ Treasury estimates thet the tax take will be increased from $37,000,000,000 in fiscal year 1960 to &55,000,000,000 in fiscal year 1952, even if no further tax increases are enacted, We have taken off the fat. Further huge tax inereases will dig deeply Into the lean mcit and possibly into the very bone structure of our economy unlees they are eased by elim!i- nation of nonessential expenditures. General Eisenhower hag warned that our war alert status may last 20 or 30 years, Our real strain may be economic attrition. We must husband our financial strength and tighten our belts for the lang struggle ahead. The country is entitled to a firm finnncial program from the administration instead of piecemeal “quickies.” Our financial pre- paredness cannot be attained by piecemeal implementation such as the President pro- poses. I repeat—it is essential to pay as we GO, but the people of the United States will not accept huge tax inoreases in good spirit unless they are accompanied by: 1. Closing of all loopholes in existing tax laws. The start should be made with the tax exemptions now given to the President, Vice President, the Speaker of the ouse, and Senators and Congreasmen. The President receives $50,000 tax exemption, the Vice Pras- ident 810,000, the Speaker of the House $10,000, and each Senator and Congressman $2,500. If legitimate expenses are incurred, allowance should be permitted from their in- come tax returns, but all income should be taxed on an equal basis. No one should en- joy special privileges in tax exemptions at any time, but especially not now, when the tax burden must be vastly increased. I voted against these tax exemptions when they were enacted, and I will vote for the Wlliams bill now pending to cancel these exemptions. Common sacrifice for national unity requires that these tax privileges be eliminated promptly. 2. Improved tax assessment and collection system to prevent tax evasion. 8. Elimination of every dollar of nonessen- tial spending. After these things are done Congress can then determine the extent that new taza- tion fs necessary in order to balance the budget. My budget is an austerity budget. It will hurt but not so much as huge new taxes. The rich cannot pay it all. If we confis- cate the income of all those having more than $100,000 net income, it will net only $600,000,000 in taxes. The President has “dared” the Congress to reduce his budget. He has spoken in « bel- lgerent tone. His dare should be accepted. The Constitution gives only to Congress the power to appropriate public funds. The President can only recommend. To coerce or intimidate Congress in the execution of this constitutional power is a step toward dictatorship as the “power of the purse” in the hands of Congress is a major bulwark in our free government, I propose, and have submitted in detail, reductions in the President's budget to the total of about 89,000,000,000. As a Member of the Senate I will fight for this reduction &8 & Measure necessary to avold disastrous taxation and ultimate Insolvency. On request I will have printed and send at my own expense to thone interested copies of the congressional reprinta indicating where and how these reductions can be achteyed without tmpairment of national de- fense or essential Federal functions. merely cite now a few isons to indi-~ cate that the Presidential “touch me not” budget should be reviewed by Congress for the elimsination of unconscionable ee im apending by nondefense agencies. pare bis proposed figures with the 1960 en 8X penditures, Ido not argue that these ahowd be cut back to the 1940 figures, but I em- A1196 size the amasing expansion goyern= Frontal seumoles enoluiee cf" tose crmed services. | These figures cover actual expenditures for the fiscal year ending June 80, 1940, and the President's budget for June 90, 1962. 1940 Denartment of Com- eee nea ere cawsume 7A, 116, 535 Departinent of Interior... 7 oe a0) Department of Lahor... 18, &76, 698 Department of Justice... i, ais, 182 Department of State... a7 Tndopendont Offices... 3, Py oe 403 The Federal Government te now adding 1,000 new employees each day, and I esti- mate that, unless checked by Congress, €00,- 000 to 500,000 new employees will he added to the public payrolls, on which there gre more than 2,000,000 civilians at thie time. The President may want his budget to be @ “sacred cow,” but Congress will be derelict in its duty unless it explores every inch of it and trims off the fat which bulges out of ita every part. The people of America want nondefense spending cut to the bone. It remains to be seen whether an obstinate President, who has dared the Congress to reduce his budget, can defeat this overwhelming public sentiment. The free-enterprise system operating in the fullest freedoma of democracy stimu- lates individual initiative to the develop- ment and production of mure of what we need at a cost we can more easily afford from the earnings of our endeavor, Iam for that. Among the cardinal characteristics of socialism are Government subsidies with controls, and Government dole with regi- mentation, I am against that. The welfare state Is thn’ state of twilight in which the glow of democratic freedoms is fading be- yond the horizon, leaving us to be swallowed up in the abysmal blackness of socialism or worse. Socialism will not came to this Nation as long as it ite fiscally sound. People are always restless and unbappy in debt. Debt makes slaves of people. There can't poaaibly be either military security or civilian wel- fare under conditions which are bound to exist in a nation which is constantly increas. ing ita debt from a postwar base of a quarter of a trillion dollars. Remember this: People can't cash war bonds of an insolvent nation. Fully solvent nations don't go socialistic, As I have said, the Federal budget can be cut without im- peirment of our military security or the tm- pairment of any essential Federal function. You can bring this about by the use of the media at your command—your business, your newspapers, your radio stations, your Organizations, your family, your associates— to press home the facts. Tell the facts over and over again. How could we finance an- other war, if it should come, with a debt already at a quarter of a trillion dollars? I do not believe the people of this country Want to Hve under a socialistic government or something worse. If we like what we are seeing in England we are justified in sitting on our hands while others bring it about in the United States, Balancing the Federal budget and keeping it in balanoe during times of peace with no domestic emergencies le the first vital re- quirement for the preservation of our secu- rity and the security of democracy through- out the world. I do not concede that either democracy, or free enterprise, or any other American freedom, has run the course of ita weefulness in the world, They have bec. worth fight- ing for and winning for in the past against
A1196 woth economic and military challenge, and I do not concede thet they were any-dearer to those who have fought and won before then they are to us today. We shall win again, but not until we begin thinking straight through all. the double talk that we hear to the hard core of the problems that confront us, until we recognize the ssori- fices we must make, until we see clearly the course we must teke, and until we act aecordingly. In all of these, leadership, characterized by unselfish and selfless patriotism is the frat requirement. We have had it in the past, It is not too much to ask now. I have been frequently oriticized by some of the New Dealers and Fair Dealers for vot- ing with Republicans tn the Senate, but I tell you now, as I have said before, the test of my vote in the Senate and my actions elee- where, now, as they have been in the past, and as they will be in the future, are deter- mined by the test of what I belleve in my conscience to be the best for my country. I gay with all the sincerity of which I am capable that such must be the test to be applied to everything by everybody in this country~in public office or out—for a long time to come, if we are to restare the peace and freedom for .which this Nation was Younded, and to which it is dedicated. Depletion Allowance on Oil REMARKS HON. KEN REGAN OF TEXAS IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1951 Mr. REGAN. Mr. Speaker, some 25 or more years ago this Congress decided that, in order to encourage the develop- ment of our mineral resources, it would take care of those engaged in that risky business by giving them a certain deple- tion allowance on their discoveries if and when anything was discovered. That has gone on now for more than 25 years in a very successful manner, and we have developed our oil resources to the point that this country has never gone for want of this vital commodity in time ‘of war. We are now about to get into another conflict and have been preparing for one, and again it has been suggested that the depletion allowance that has long worked so well for the development of the mineral resources of our country be reduced. I do not know why it should come up every year. Time after time Congress has decided on the worthiness of this depletion allowance program, The talk by General Thompson, of the Texas Railroad Commission, explaining in detail the working of this program before the Committee on Ways and Means today, is as follows: Sqatement ov Lr. Gen, Eanner O. Tomrson, Trxsa Rarroap Commission, BEPORE THE ‘Ware ann Mxans Commirrer, Hovusr or fone |) Wasumoron, D. 0., Marcu Mr, Chairman and gentlemen of the com- mittee, my name is Ernest ©. Thompaon, I ‘was before you last year on this subject of depletion allowance on ofl. You may ask ‘why am I back here?’ The olj-eupply aitua- tion today in the United States is much more serious than it was a year ago. That is why I am here. f have no financial interest in ofl, I own no oil production, no royalty or ol] stocks or interests of any sort or kind whatsoever, None of my kinfolks owns any oll interssts that I know about, and I think I would know about it if they did. My sole interest is that of a citizen soldier and as a conservation official, Iam a member of the Texas Railroad Com- mission, the State oil-conservation body, 1 have been {in dally contact with oll conserva. tion for 18 years in this capacity. We have 2,268 separate oi] flelds with 126,- 281 producing ot! wells, and Texas produces two and one-half million barrels of of] daily. The Nation is producing 5,860,000 barrels per day at this time. We will soon be at capacity. Demand for of] was never so strong as it is today. With the uncertainties of the future to be faced, we must find an additional reserve cushion of oi] for our defense. Our safety margin is too short. The question of depletion allowance here under consideration is the keystone upon which this added production can be built. It is a proven incentive. ARMY AND NAVY CONVERT TO OIL Today we are in a state of national emer- gency. Our men are fighting in Korea. Our national security is in peril. We need more oil-producing ability today, far more than we did a year ago. We face a pressing need for at least 1,000,000 additional barrels per day of ready producing reserve. Every pos- sible incentive must be offered to get this added oll. In War I we converted our navies to oll from coal and our Allies floated to victory on a@ sea of ofl. Motor vehicles were just be- inning to displace the horse as motive power or our Army. Our artillery was still horse- drawn, In 1941, when War II came upon us, we were consuming in the United States 4,000,- 000 barrels of ofl per day. We had at that time the ability to produce 5,000,000 barrels ‘per day from wells already drilled. This was @ producing reserve of 25 percent, and, mind you, only producing reserves are of any value for war. When experts estimated that we would need 5,000,000 barrels per day to win the war, their prediction, though it seemed fan. tastic, proved to be true, and even civilian rationing was necessary. Sixty percent of all overseas tonnage in War II was petroleum. Our defense machine moves on oll. Oil reserve for war must be ready in wells already drilled and hooked up to pipelines and refineries of ample capacity to produce the products of proper quality. You can’t fight a war on undrilled oll wells, The wells must be ready within our borders, able to produce an additional million barrels per day, 1%, as, and when needed. We cannot feel secure with leas, dependent as we now are on £0 much foreign oil. We cannot depend on foreign oll for defense, In 1948 the man who headed our War It petroleum problem, the Honorable Harold L, Ickes, told the House Armed Services Com- mittee: “The prudent man, instead of regarding the figure of our military leaders as exces- sive, must conclude that the only safe policy would be to regard them as an underesti- mate. Quoting Secretary Ickes further from the same hearing: “And I will say further, that in the event of another war, we cannot rely on importa, with the possible exception of Mexico. In other words, you will not be able to bring it in by tanker. The airplanes wil! be so efficient that they will blow every tanker off APPENDIX TO THE CONGRESSIONAL RECORD the surface of the ocean. You cannot de- pend on that.” I concur absolutely with this statement and cannot emphasize too strongly that we must develop our own domestic oll produc- tion. May I say that the Congress hag been doing that for more than 25 years by the depletion recognition allowance. It is a proven method, We are told that we are short of some 71 critical commodities today. They have to be imported, If the Congress had pursued the policy of encouraging production of these com-~- modities here at home as you have so wisely done in oll, we might not be so short of these 71 items, Had you cut out or reduced the depletion incentive in the past, as you have each time wisely refused to do, we might today be com- pelled to depend on foreign sources for our defense oll. Our reserve of daily producing ability to- day is relatively much smaller percentage- wise than it was in 1940. We are consuming in the nature of 6,000,000 barrels of oi] per day in the United States, and our reserve daily producing ability is not in excess of 600,000 barrels, So the reserve today is only spout 10 percent as against 25 percent in 0. The late Secretary of Defense, James For- restal, testifying before the House Armed Services Committee in 1948, said: “The maximum military requirements of petroleum in the event of a war emergency are now estimated nearly double the require- menta of World War I. In other words, instead of 1,375,000 barrels per day, it would be about 2,750,000 barrels, which would be roughly 70 percent of our daily production before we entered World War II.” We are importing about a million barrels of oll per day into the United States from other countries, and were it not for these imports rationing of civilian gasoline would be on us today, A year ago oil imports pre- sented & domestic oll problem. That prob- lem does not exist today. Imports should come in only to supplement and not ever supplant domestic ofl. You cannot depend on foreign oll for defense, This, to me, presents a real problem in the supply of oll, come war. In fact, it even presents a real problem to find oil for our rapidly expanding peacetime economy even if war is avoided. CONSUMPTION 18 INCREASING Gasoline consumption fs up 20 percent over last year. Twenty-seven thousand new motor vehicles were added each day last year. The railroads have largely converted to Diesels, which require much oil. We have in storage at this time above ground 133,134,000 barrele of gasoline; but when divided by the number of vehicles on _ the road using gasoline—that is, automo- piles, trucks, and buses—that gives only 114 gallons per vehicle in storage today. This does not include farm tractors or stationary engines. HOW WILL WE GET OIL FOR TOMORROW? It is proper for us to ask this question, then. What are we going to do for oll, come war, or even for the constantly expanding economy of the United States? During the last reported week, in January, there were completed in the United States 848 new wells compared with 817 in the same week of danuary 1950. Wildcat or new-dise covery completions gained 30 wella over laet year for the same week to a total of 172, There are 2,234 rotary oll-drilling rigs ing in this country today. Tt ia the plan of the Petroleum Adminiatra« tion for Defense to try to obtain enought steel to drill 44,400 oll wells in the year 1951. This compares with 48,000 drilled in 1960, During the year 1950 we brought in encugh new dis-
APPENDIX TO THE CONGRESSIONAL RECORD coveties tc take care of the ofl that we con- sumed, and addad only arotmd 1.000,000,000 barrels to our reserve. But the trouble with these reserve figures ia that it takee a long time, & generation, to produce all of the oil in the known reserves. The early production, of course, is fiueh, but it takes a long time to bring the laat part of the cil out of the ground. As Selds get older they produce more slowly. It should be borne tn mind that in order to get an addtional 1,000,000 barrels per day of ready of] reserve, there must be twice as many wells drilled as are even contemplated to be drifted in this year. The method of calculation is easy. We drilled inet year 43,000 wells, and with those additional wells we were able to only care for the normal growth in consumption of our constantly expanding peacetime economy and for the small additional requirements of the Korean War effort. CRUDE STOCKS LOW Oil stocks at the moment are dangerously low, Crude stocks ahove ground are 337,000,+ ww darrels. This is ae low as stocks should In 1040 at this time of the year we had 98,000,000 barrels of gasoline on hand, which averaged 184 gallons of gasoline per vehicle. In 1046 at this time of year we had 104,000,- 000 barrels of gasoline on hand, which was 120 gallons of gasoline on hand per registered motar vehiole in the United States. We now have the lowest inventory per vehicle on record. We are faced with our largest de- mend tn history. HOW CAN 20-BARREL WELLS COMPETE WITH +10,000-BARREL WELLS? The average oil production per well in Texas today is about 20 barrels. The average for the United States is around 16 barrels per well per day. Some wells in foreign flelds produce up to 10,000 barrels of of] per well per day. Our problem here tn America is to find ways and means to permit our ofl to come pete im the world market with foreign oil quest pete with 10,000-barrel wells? We are going to have to spread our oll-well steel supply much thinner in order to get more barrels of I eak you gentiemen again: “How can 20- barrel wells in America compete with 10,000- barrel wells in foreign flekis?” Certainly it is fair to assume that if the allowance is reduced our of] supply will auffer. We are not now in any position to see our ofl supply diminished. We can- Rot afford to let anything happen that would leasen the incentive to hunt for ofl in the United States, It we get into a general war, our tankers, ‘nescorted, might be sunk and we would he pleted capital to go and inant for more oil, He just gets a bunting Hoense to evarch for of. This he almost invariably does. A great deal has been said about the independ- ent oil man finding most of the of]. In all candor I mrest say that many of the inde-~ who search for ofl go to the majors for assistance in the form of bottam-hole money, dry-hole money, purchase of check- erboard leases, and other cooperative meth- ods which help the independent to put down his wells. The oil searcher has to get cap-~ ital wherever he can find it. Inquiry has shown thet the major com- panies have expended twice as mttch in search for and development of of! produc~ tion as has heen granted to them in the form of depletton recognition, DIFVERENCE BETWEEN DEPRECIATION AND DEPLETION I think tt wel) to distinguish between de- preciation, which is the granting of an allow- ance to rebuild something that can be re- bullt, while depletion in ofl ts the recogni- tion of diminution af ol} in the reservoir. Only nature can make ol], Man can only search for these deposits of nature. After all, it is the consumer who must be served and served he will be. The consume- er’s wishes wil] best be served in our keenly competitive system, in whieh every men strives to supply the demands made upon bim. Incidentally, gasoline prices, excluding taxes, are no higher than they were 20 years ago, and the present gasoline te a far supe- rior product to the gasoline of 1830. Crude prices have not risen for over 3 years. They have been ateady. The current press items carry the news that the of! industry has been called upon to furnish figures on the cost of adding 1,000,- 000 barrels per day to present capacity. Surely when one division of our Government thinks we should butid up 1,000,000 barrels per day additional of] capacity, producing, transporting, and refining, this 1s no time to be taking away incentives which would make that increase in capacity all the harder to attain. The Department of Interior also ls con- sidering the matter of coal-hydrogenation plants to guard against possible quid fuel shortages in an all-out emergency, This talk is that 16,000-barrels-per-day-capacity plants would coat in the neighborhood of 250 to $00 million dollars. I am not talking against the construction of coal-hydrogena- tion plants, but the very fact that our In- terior Department is considering or discus- aing the advisability of speniing 250 or 300 million dollars to butid two planta that would make 15,000 barrels per Gay cach, or only 90,000 barrels per day, certainly em- growing so fast in our consumption of petro- AlI97 leum and tte products that we. sre to be hard put to keep up with the adrance In requirements for petrolenm. And e@ an oil conservation official from « State that pro- Guces 2,500,000 barrels of ofl per day, and as 8 citizen soltter who appreciates that oll is ammunition, I respectfully suggest and rece ommend to you that you do not change the Prevent 27,-percent depletion allowance ne now provided in the statute. It has worked well through World Wars I and IJ, and has brought us thus far along in war “T74,," and I trust that it will be kept in effect so that we may build up a reserve supply of petro- leum that will help us avoid war III, or to be more nearty ready come war, We can avoid it only by being amply prepared to Gefend ourselves, amd we canmot be amply prepared to defend ourselves unless we have ample oil supplies. Ample off supplies will not be obtained, in my opinion, t you tamper with the 2714 -percent depletion. Back in 1918, when the discovery value was recognized by this Congress, of had not be- come really so vastly important to our economy. In 1926 when of] was more important to us the Congress wisely set up the 27/4-perceut depletion allowance recognition. The C reviewed the whole question in 1942 and found it to be a proper and sound incentive to discover new oll. It has become the keystone of our oil- producing industry. Now in 1951 when our very freedom is at stake why tamper with this time-tested and proven method. To do so would endanger our defense effort. It would impetr our economy, Tam an etected public official just like you gentlemen are elected public officials. I have my problema just like you have yours. My problem is to try to inerease of] production, Your problem is to raise revenue. The way to raise the revenue of this Nation js to in- crease production. If we increase of] pro- duction, your revenue will be increased. I know you want ample ot] for defense. The reduction of the depletion allowance will reduce off production for defense and will reduce your needed revenues for our war effort. I know you do not want to do anything that would reduce of] production and reve- nue at the same time, To tamper with the depletion would do both. I know you need to raise taxes. Iam for it. But do it for all alike in the same manner, Outeide of water and bread there ie no More important commodity than ofl to our existence today in this forward-looking Na- tion. Realistically, you couldn't get the bread without the gasoline. We cannot risk any possible shortage of oll, ‘The retention of the depletion allowance will keep going the constant search for more oll by big and little operators all over our land. I hope they find ft. Here we have one branch of our Gov2rn- ment talking about spending $300,000,000 to make 90,000 berrels per day of synthetic oll, Another branch of cur Government says we must bave an added million berrels per day available oll production for our defense. Then stil branch of our Goverument comes slong here and seks your committees to out the discovery incentive by 45 percent, Thts would reduce the of} imdustry’s fnan- Clal ability to expiore for of. It ust doesn’t make good sense. 3+ doesn't even make good nonsense. It fe not too much to ssy that petroleum protects freedom, Our tanks, our ships, our planes, and trucks all requive petroleum in great quantities. If we are to remain free, we mast be stromg. Our Armed Forces move on of. One day without oll would paralyze our economy. Petroleum propels the ma- chines of defense. Yes, gentlemen; pstro- leum protects freedom. I thank you.
A1l98 EXTENSION OF REMARKS HON. HOMER FERGUSON OF MICHIGAN IN THE SENATE OF THE UNITED STATES Tuesday, March 6 (legislative day of Monday, January 29), 1951 Mr, FERGUSON, Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp a series of four articles from tle Detroit Free Press, written by Mr. Paul R. Leach, the dis- tinguished chief of that newspaper's Washington bureau. ‘These articles expose the huge Govern- ment propaganda machine which annu- ally consumes and wastes millions of tax~ payers’ dollars. As the series reveals, r uch of this so-called Federal informa- tion service is designed to promote bu- reaucrats’ pet projects and policies, It js a timely and important series on a phase of Government activity which is too lit- tle know'1, and is the product of an in- tensive investigation by an outstanding reporter. There being no objection, the articles were ordered to be printed in the Recorp, as follows: {From the Detroit Free Press of February 18, 1951] Unrreo States MACHINE FoR PROPAGANDA Kept Wert O1nep—45,000 Pupiictry MEN Arner BOon ‘ro Burtaucrats (By Paul R. Leach) Wasuincton.—The American people are supporting more than 45,000 Federal eme ployees who are engaged directly or indi- rectly, full or part time, in dispensing infor- mation, publicity, and propaganda, A little«-kKnown report of the Hoover Re- organization Commission called much of this activity “thought control.” There have been congressional charg3s that there is great waste in the Govern- ment’s publicity campaigns. A resumption of investigations into the whole picture ts being sought by Republican critics of the Truman administration. The 45,000 figure was supplied on congres- sional demand by the Budget Bureau more than 2 yeara ago. It is believed to be grow- ing larger as emergency bureaus are formed. Many of these 45,000 are said by congres- sional criticis to be carried on the payrolis in capacities other than publicity venders. But they are used, part-time at least, to fur- ther administration ideas and aims, and to stir up pressure groups to influence legis- lation. However correct that 45,000 ts, there are more than 8,000—from stenographers to in- formation officers—engaged directly in pub- Ne-relations work, Thetr annual pay runs from @8,000 to $10,300, with a few section chiefs getting $15,000, The largest group, nearly 6,000, is employed by the State Department and the Economic Cooperation Administration at home and abroad, The other 2,000 are ecattered through do- mestic departments and bureaue in Wash. ington and throughout the country. Even the most severe critics of the Gov- ernment information machinery admit that much of this work is legitimate and essen- tial. These people inform the public, the presz, and radio of the operations of » Gov- ernment employing 2,1.9,000 persons and doing a $50,000,000,000 annual business. They seek to spread the gospel of free America abroad as counter to Communist propaganda, How much of itt is legitimate and how much 1s waste only a full-dress congressional investigation can determine. When Government publicity was last in- vestigated by the Eightieth (Republican) Congress the total cost of direct and indirect publicity was estimated at $250,000,000. The State Department employs 5,028 per~ sons at a total salary cost of $14,015,670. Of these 3,393 work overseas, 2,844 of them locally recruited from foreign sources. Only 549 are Americans. The other 1,635 are employed in this coun- try. This includes 148 in Washington who are directly concerned with supplying public information. By far the largest portion of these State Department workers are connected with the Voice of America and the United States In- formation Office, The USIS, mostly connected with our em- bassies abroad, dispenses American informa- tion in 82 countries. The Economic Cooperation Administration has a total working budget for salaries, radio, publications, movies and still pictures of more than $17,000,000. , It employs 58 persons in Washington and 602 abroad in “selling” the Marshall plan as an antidote for communism. Of those employed abroad 169 are Amer- icans. An oddity of the ECA oversens cost total is that nearly $16,000,000 of it is paid out of counterpart funds, Every country getting Marehall-plan grants from the United States must set aside the full equivalent in local currencies to be used internally for recovery. These are countere part funds. Five percent of this is collected by the United States Treasury for buying strategic raw materials and in meeting ECA expenses abroad. The ECA information specialists abroad and some of the State Department's USIS people are irritating to other Americans over- Beas because they draw living expenses in addition to pay. Thus, the top information man for ECA in Paris is paid $12,000 in salary and $3,000 for rent and servants. Also, Foreign Service employees may have thelr personal automobiles shipped to them at Government cost. Except for ambassadors in major capitala and two top ECA administrators in Paris, who are provided cars with chauffeurs, over- seas employees get free transportation only trom cars in Government-owned “pools.” Both USIS and BCA publicity offices are somewhat at sea now because of moves in the Senate to consolidate all overseas propa- ganda bureaus. The ECA is to die legally June 80, 1952, but the Senate Foreign Relations Committee wants to carry its work beyond that time. While there has been some criticism of the Voice of America in Congress, Senator BEN- ton (Democrat, of Connecticut), former As- sistant Secretary of State in charge of all information activities, wants it greatly ex- panded. The over-all cost of the Voice this year is $57,462,167. More than 840,000,000 is going into the buliding of new transmitters in Amerioa and in Europe. Except for Joseph H. Short, White House information secretary, and Robert R. Mullen, head of all ECA, public relations, the Wash- ington top for information men is around $10,000, Short gets 17,000, and Mullen draws 15,000, ‘ APPENDIX TO THE CONGRESSIONAL RECORD Employees in the United States do not get Mving allowances. Here are high Mghts of other major Gov- ernment offices: The Department of Defense ts second to the State Department in number of persons assigned to all forms of public re‘ations. The total is approximately 1,800, The fig- ure is hazy, because many officers handle two or more jobs including information. The Department of Agricuiture figures it has 400 people on information jobs, nearly half of whom give part time to it. This figure does not include another 300 engaged in the research, writing, and edit- ing of its many publications The Federal Secur.ty Agency employr 31 information specialists. It has 10 ned of- fices, but in only one, Chicago, is an em- ployee listed as doing public relations, The Department of Labor has 30 persons in its public relations bureaus, The Veter- ans' Administration has 68 scattered over the country. The Department of Commerce has 73 per- sons in its information and publications section, The emergency agencies are just getting started. The price and wage offices have 10 men here and 50 in the field. ‘The National Production Agency has 15 local men and 18 in the field. So far Charles £. Wilson, “assistant Preat- dent,” in charge of defense mobilization, has only three information men on his staff, [From the Detroit Free Press of February 19, 1951] ConcressmAN Hits Uniten Srates Prora- GANDA TO CoNnTROL THOUGHT—CLAIMS AGENCIES ATTEMPT TO GUIDE PEOPLE's THINKING (By Paul R. Leach) (No. 2 of @ series) WasnHineton.—"“There can be no question that the greatest and most effective lobby in the country todvy is that conducted by the Federal administrative agencies,” says Representative Bow (Republican, Ohio). A freshman Member of the House, Bow was attorney and fact-finding chief of the Harness Committee of the Eightieth Con« grees which spent 15 months delving into propaganda to influence Congress by Gov- ernment agencies. He wants Congress again and more fully to go into the “location of and rooting out of the inciptent dangers of Federal thought control.” He charges that bureaucrats who are not a part of the legitimate Government information and public relations offices are promoting such activity. He is especially interested in having Con- greas Keep an eye on propaganda for tne Brannan farm plan, prepaid health insurance, and activities of the Interior Department's Bureau of Reclamation. Bow explains “thought control” as “a sys- tem of Government propaganda which pre- sumes to tell the people what they (the people) should think about certain grave issues, what kind of legislation they should demand.” “This system builds up pres- sure groups to push administration bills,” Bow claims. The aim, he says is for more centralized Federal Government power, larger appro- priations. He recently charged that the Federal Se- eurity Agency is spending $2,000,000 a year on promoting “socialized medicine.” Pres. ident Truman again recommended this item in his 1952 budget measage. Bow recalled the row in Congress last year when Agriculture Secretary Charles P, Brannan summoned some 6,000 regtonal Agriculture Department emptoyees to a moeting at St. Paul, Minn,, at a cost of 6200,-
APPENDIX TO THE CONGRESSIONAL RECORD 000, The group heard a Brannan plan polit~ me Senator Fra mator juson (Republican, Michigan), told the Senate at the time was & sheer violation of the law. ® recent House speech Representative Larnam (Republican, New York), seid that, although the St. Paul meeting was held 9 months ago, the Justice Department has done nothing about it. “The aduoinistration has frankly begun to experiment with the mechanisms of official thought control,” said Laruam, “* * © at The Hoover Reorganization Commiseion, im its unpubliabed report last year, devoted considerable space to another Department of Agriculture activity in 1948. The House bed made reductions in the soil conservation appropriation as recom- mended by President Truman. A telegram was seni from the Department in Washing- ton to all State administrators of the pro- gram. Regional meetings were held, the report recounted; letters were sent to county agents deaigned to stampede the Senate to restore some of the economies. The Hoover Commission report pointed out “the potentialities of such a campaign look- ing to a telegraphic drive on Congress.” There are 3,029 county agricultural aaso tions in the United States, it said. Each has its county offices. There are 9,087 county committeemen assisting the county agents. “Under these county committeemen,” the report went on, “are 97,629 community com- mitteemen employed on a per diem basis. In addition there are 8,378 paid office perzonnel serving the county agents. “All of these local information channels are brought together in each State under the State administrator, a full-time officer and staff, usually located in the capital city.” Among other inquiries which Bow recalled the Harness committee made, was one into Army propaganda for Universal Military Training. That was #0 unpopular at the time that Congress refused to consider it seriously. Bow is now a member of the Public Lands Committee, which keeps an eye on the In- terior Department's Bureau of Reclamation. As attorney for the Harness Committee Bow wrote the report which charged the Reclamation Bureau with “evasion of the in- tent of Congress and wilful evasion of Fed- eral Law.” That grew out of a long investigation into Reclamation Bureau lobbytng for {ts projects, especially in the western States. Echoing Representative Laraam, Bow said that by its size slone the Federal domestic propaganda army of regular—not public rela- ttons—employees influences public thinking. The public is being conditioned by its own Government to demand miare and more aubsidies, guaranties and grants * * * and to defeat any Member of Congress who dares to raise hfs voice In protest.” Snop Lagarsr In Woa.p (By Paul R. Leach) (No, 3 of a series) Waamunerow.—The United States Govern- ment conducts the biggest printing and pub- Mahing business in the world, and it is grow- tng much larger. Tne Government Printing Office during the fecal year onded last June spent 657,631,- 000. Its allowance from Congress for the 13 months ending next June went up to $88,- 4 similar amount haa been re- for the 1952 year. of the Washington catabliahment’s for Congress and ail ue | and af amaller plants in a dosen citlea, is necessary. At the same time, that output furnishes publicity for administration-favared causes in countless ways. How nouch waste is involved is a question Representative Raza, Republican of Kansas, ranking minority member of the Civil Serv- ice Committee, wants Congress to delve into. “The waste,” he told the House recently, “ia great but incaloulable. The Government speot millions of dollars more than it should because of duplication and multiplication of ‘ort. “Furthermore, it prints a tremendous amount of material that is unnecessary.” Reks poluted out that the printing-bill figures do not include the costs of writing, editing, and sssembling countless publica- tions, big and little. Those coats, he said, ere three times that of the printing. Senator Bamwoxs, Republican of New Hamp- shire, ranking minority member of the Ap- propriations Committee, discovered a couple of years ago that more than 63,000 publica- tions were issued by the Government Print- ing Office in 1 year. He tried to make @ complete survey but gave up after discovering that in 1949 the Superintendent of Documents issued 61,879, 102 copies of Government publications. Because we thought Bawners might have been exaggerating in thet speech, we called a few days ago at the Office of the Superin- tendent of Documenta. In the reception room we picked up 62 catalogs, from 2 to 60 pages each, Mating pub- lications for sale. Prices tor those thou- sands of pamphiets and books range from 5 centa to 65. They are carried free by the Post Office. On top of the beap was a 10-page booklet listing 134 Government periodicals. These run from the daily CongagssionaL Recoxp (proceedings of Congress), which you can get for $1.50 a month, to the official monthly organ of the Department of Agriculture's Soll Conservation Service. That coste'$1 a ear. 3 The monthly bulletin of the Social Se- curity Agency, which has been accused in Congress of propagandizing for compulsory medical Insurance, costs 62 a year. The Rural Electrification News, bimonthly, can be had for 75 cents a year, Most of these publications are sold at Printing cost. This represents a logs to the Government because the preparation and editing js not figured in. Bere are high lights of just a fow of the Other catalog titles, each Misting many sepa- Yate publications: Fish and wildlife: Nine pages. You can find out how to trap bobcats for & cents, For another nickel you can learn about the Turbellaria in the Philippine Islands. Pimance, banking, securities, loans: Seven- teen pages. A nickel will get you the Bret- ton Woods agreement, but it will cost you 20 cents to learn how to select a store location. Office of Education: 19 pages. The status high as $4.50 a volume. For a dima you can find out about paid vacations in the United Occupations, professions, and job desorip- tions: 12 pages. What a rabbi, priest, or min- dater does, for 5 cents exch. Tariff and taxation: 18 pages. From inter. Al199 Life {s too short to count all the pubties- tions in those 62 catalogs. We're teking Basooma” word for it. ‘ Undoubtedly many are valuable. Some of the cost is realised in sales. But Ress brought out the fact that “tons and tons of undistributed Government pub« Ucations are sold a4 waste every year.” He found that some 5,000,000 back-number, nondemand copies are condemned each year. {From the Detroit Pree Press of February 21, 1961) Anp Pusuic Pars—Borzauceats Burp Powss on Favors (By Paul R. Leach) (No. 4 of a series) Wasttiweron.—When you demand favors of your Congressman you may be helping Giov- ernment bureaucrats influence the adoption of pet legislation and nonessential spending Dilla. And, says Representative Muanmr (Repub- lean, Michigan), you weaken the ability of regular Senate and House committees to in- vestigate impartially the far-fiung activities of executive departments. You also may become unwittingly a tool of the ida machine that seeks more power for individual bureau heads and the central Government and add to growing Treasury deficits. “The country,” says Meaper, “is danger~ ously close to something like state socialism because of an overgrown bureaucracy and weak congressional investigating powers.” To correct this tendency Mzarza would have Congress do these two things in addi- tion to dotng more auditing of the execu- tive departments: 1. Encourage the creation of special in- vestigating committees. Their members would nat have the close relations with any given executive department that standing- committee members have. The congressional reorganization act dis- couraged special committece. 2. Greatly increase the professional staffs of regular and special committees. Nearly 300 lawyers and trained investi- gators are now available for the tremendous job of seeing that the executive department does with its money and lawa what Congress told it to do. Mrapzr vould double that staff. The added costs would create savings a thousand- fold, he believes. Although a freahman member of the House, Mraper is far from being a stranger to how Congress works, He was head of the legal and investigating staff of the Senate’s Special War Investigat- ing Committee. It has been crodited with saving the taxpayers billions of dollars dur- ing and after the last war by its watchdog labors, He is a member of the Government Opera- tions Subcommittes of the House Expendi- tures Committee, His subgroup, headed by Representative Baspr (Democrat, Virginia) has authority to investigate any Government department's activities. Among the things Mzantr wants it to look into is pressuse by bureau heads for legislation. How favors weaken a Congressman's infu- ence was told by Mxapsx. “A mew Congressman comes to town,” he seid. “He draws amignment to a standing committee which deals with one or more Federal bureaus. “Immediately, those burean heads and their deputies start being nice to him. “t's never so blatant as providing wine, women, and song. They do things for bim that his voters ask for. “Some constituent wants his civil-service rating Upgraded for better pay. Another
A1200 wants his son transferred from one military amignment to another, “4” business than or manufacturer needs help in seeing the proper people for con- acts, “The back-home mayor or governor or chamber of commerce wants a public-works project planned, _— “School Kida and researchers want infor= mation that will take days to compile. “all these things and many more which are constantly being requested of Congress- men require help from some Government bureau. “The bureau head, not the bureau's public- relations man, sees personally to the job of taking care of them, as promptly and fully as possible. “Over the years these favors mount up. “When a member, especially if he's of the administration's majority party, achieves seniority and authority in his committee, he 4s valuable to the favor givers. “And because of those favors tt is often a@iMicult for a member in committee work affecting bureaus with which he has had to take a detached, penetrating viewpoint.” The very existence of special committees, such eas that for which Myanmar was chief counsel end which Senator Farcuson, Re- publican of Michigan, wants to revive, serves to make bureau heads more careful of how they operate, Mzapzr believes, Address by Gov. John S. Fine, of Penn- sylvania, at Anaual Dinner of Pennsyl- vania Manufacturers Association EXTENSION OF REMARKS HON. EDWARD MARTIN O¥ PENNSYLVANIA IN THE SENATE OF THE UNITED STATES Tuesday, March 6 (legislative day of Monday, January 29), 1951 Mr. MARTIN, Mr. President, at the annual dinner of the Pennsylvania Man- ufacturers Association, held at Philadel- phia, on February 27, 1951, the Honor- able John S, Fine, Governor of Penn- sylvania, delivered an able address, in which he pointed out the duties of gov- ernment and business in the present crisis. I ask unanimous consent that the Governor's address be printed in the Appendix of the REcorp. There being no objection, the address ‘was ordered to be printed in the Recorp, as follows: Remarxs or Gov. JonN 8, Pine at rue ANNUAL DINNER OF THE PENNSYLVANIA MANUPFACTUR- xRs’ AssOcImaTion Gentlemen, I am glad to have this oppor- tunity of talking to an organization of men who exert a distinct influence on Pennsyl- vania's growing economy. As you well know, we are living in an atomic age. That connotes many things— among them, sacrifices, fear of global war, preparedness in the hope of avoiding cone Aict, readinesa if we cannot avoid tt, We have need of many readjustments to our normal ways of doing things. Those readjustments apply to our everyday way of life. They involve business and indus. try. They apply to the conduct of govern- ernment. Little, if anything, is outside the scopes of change in our Commonwealth and in our Nation, We must be prepared for anything and everything. Once again in far too short a span of time we have to gear for war, And that, basically, ia industry's job. The time for theorizing 1s past. The practical man’s day has come—is here again. There never has been too much theorizing in business and industry—but there has been in Government. And there still is, That fact is largely responsible for the trouble we are in. Weak and deteriorating inter- national negotiations, masking under the misnomer of diplomacy, contributed to our difficulties. Ill-considered judgments, which tore down our strength even while conflict raged, did not help us to solve the problems which have ted to the predicament we are in today. Industry was expanded; then dis- mantiled at the first thoughts of peace. De- mobilization was hastened. The uncertain- ties of a precarious peace were further en- larged, Our productivity, which astounded the world and paved the way to victory, was constantly assailed by economic plan- ners only because of its bigness, its efficiency, Now those who produce the sinews of war and of defense, again knuckle down to hur- ried and expanded production. You will do it. Of that I am certain. You never have failed, and you will not fail now. While there ig much lost motion in the process of rebuilding, potential industry will accom- plish the gargantuan job with efficiency and economy of operation. Men of industry, as all other good Americans, are tremendously interested in preserving the American way of ife, That is why I believe that the seriousness of the times makes it imperative that we bypass wishful thinking in favor of direct and practical approaches to our mantfold problemse—problems of industry and of gov- ernment. We will have to speak out, sensibly and to the point. There is nothing to he accomplished by indirectness or by mini- mizing our problems. All of you realize that you can't do busl- ness as usual. And I don’t believe you will be able to again in the foreseeable future, Conditions have changed because of a war economy which conceivably can spread to alarming proportions at any moment. Our whole scheme of things has altered. So has our economy not only in Pennsylvania but in every State of the Union. Costs mount. Taxes rise. Pay rolis increase, As men and women take up military duties man-power problems increase, These are worries that are common to all of us. They are not yours alone. They are bothersome to covery man and woman in covery hamlet and town in our Commonwealth. And you must not forget, they are the worrles of your Government too. Like everything else, cost of government has risen. And we who administer your Government, like you in industry and busi- ness, will have to take it in our stride. There is nothing else for us to do, The tremendous upsurge costs have taken, com- pels it. When rising prices come little by ttle over a pertod of time, we are apt to lose the true picture. Let me combine these rises into one package for you. As the pres- ent State administration begins, the general cost of living is up nearly 75 percent over the cost in 1940, a mere 11 years ago. Build- ing construction costs are up three times as high and still soaring. Wages are up too, in some instances 100 percent. Administration of State government has risen as high as 75 percent in many cases, This changed economy of which I speak, and which all of us I am sure, have recog- nised, demands immediate expanded pro- auction on your part, It calls for more man power, greater harmony between Govern- ment and industry and between labor and industry. Already, you are mobilizing your productive ranks. That mobilisation, and its utilization, is @ major part of the pre- paredness program. This program contem- plates expenditure by the Federal Govern- ment of some $130,000,000,000. But that is APPENDIX TO THE CONGRESSIONAL RECORD only a start. Actually, the program extends over unforeseeable years at annual expendi- tures of probably in excess of forty to fifty billions. This means accelerated production. New vistas of expansion open up to industry in Pennsylvanta, and to your advantage. Penn- sylvania has always been in the vanguard in assuring national security. It has been no idie boast tn say we have been the arsenal of America. Our natural resources, our in- dustries, our man power, our hearts, our will, our initiative have combined to make this a fact. For anyone to say we will be laggard in this emergency would be a slander or libel which we would not countenance, even momentarily. And this is where you gentlemen, and what you represent, come forcefully into the pic ture. You must assume a part of the leader- ship so vitally necessary to insure strength- ening our economy. You must work hand in hand with Government—State and Nation- al—accepting restrictions which seem in- evitable, enlarging sufficiently to support full-scale war. You face sacrifices, as do all of us. You may need, perhaps as your Gov- ernment most assuredly needs, to take a re- reading on organizational efficiency, produc- tive capacity, alertness of management. If there is room for improvement, you must im- prove, You will have to cut your cloth to the needs of the times. And, for that matter, so will your Government. We propose to pur- sue such policies in Pennsylvania, but we shall not be parsimonious in civil defense, health, and education. We are not going to run hog-wild in ex- penditures for State government in this Commonwealth. I have said that the cost of Government has risen. That is true. But I do not wish to pass on every cent of that rise 1f economies can be obtained here and there in the conduct of Government and if greater efficiencies of operation can lessen the burden. Additional taxes will have to be collected. There is no way of escaping that. But we intend to keep them at a minimum. Pru- dent management of State affairs will assist in that aim to some extent. Unfortunately, there are some people who would gleefully burden business with most, if not all, of the additional revenues needed to run the State's business. This belief is engendered, no doubt, by the ease with which some look to business and industry as limit- less sources of ready tax moneys. There !s that group who will only direct collectors’ hands to industry because they believe in- dustry has inexhaustible finances easily ac- cessible for taxation purposes. And then there are those whose policies are supported by the punitive attitude. That philosophy may be part of national thinking. It is not this State administration's thinking. We all know you can go to the industrial well once too often if the trips are frequent enough. Business moneys can be exhausted, just as the resources of individuals may vanish if they are overtaxed. That is why we intend to spread whatever needed additional reve- nues may be found to be necessary—spread them so that they will be uniformly applied and not be overly burdensome to any group or groups. That is why we are not going to penalize industry in Pennsylvania. Why should we, when Pennsylvania sincerely welcomes bust- ness to this State? We are trying to make that welcome inviting and true. The num- ber of new industries coming here, and the expansion those already here are making, are indicative factors that the businessman knows a good thing when he sees it. There ts ho exaggeration in saying that business al- ready here is growing from little to big, to bigger, far out of proportion to growth in other States. Taxation is a big consideration to an tn- dustry seeking location of ita husiness, But