1618 they can take their problems. By hav- ing his activities in one organization, he has been able to eliminate some of the red tape that binds nearly every citizen in his contacts with the Government. Let me cite an example of the merry- go-round the veteran fears. On Decem- ber 22, 1949, a young man from Ohio was injured in the post office here in Wash- ington. On the 23d he filed claim for compensation. The local postmaster had to fill out a form which had to be taken to the Employees’ Compensation Bureau. He was then compelled to go to the Federal Security Agency for a medi- cal examination and continued treat- ment of a fractured arm. From the Fed- eral Security Administration he had to return to the post office to get another signature from the postmaster. This he took to the Employees’ Compensation Bureau who approved his claim and sent it to the Treasury Department from where the check is mailed. During the duration of his injury this young man must go through all these steps every 2 weeks. He did not receive his compen- sation for the first 2 weeks of injury until the 3d of February, in spite of the fact that I made numerous telephone calls in his behalf. I do not want to see the veteran thus tossed around on a sea of bureaucracy as he surely would be if the activities which affect him are scat- tered in various branches of the Fedcral Government. The American Automobile Association will mark a route for a motorist from Washington to San Francisco. If the driver finds a bridge washed out in Kansas, the sensible thing to do is to detour around it and goon, In the same way the recommendations of the Hoover Commission are a suggested route to economy and efficiency in government, ‘We have already traveled half the jour- ney. Common sense dictates that we by- pass the destruction of the Veterans’ Administration and proceed to the destination all of us want—a balanced budget and reduction of the debt. LEAVE OF ABSENCE By unanimous consent, leave of ab- sence was granted as follows: To Mrs. St. GEORGE (at the request of Mr. ARENDS) until February 15 on ac- count of official business. To Mr. Savior, for February 9 and 10, on account of death of a friend. EXTENSION OF REMARKS Mr, MULTER (at the request of Mr. IrvInc) was given permission to extend his remarks in the Recorp in two in- stances and include extraneous matter. ENROLLED BILLS SIGNED Mrs. NORTON, from the Committee on House Administration, reported that that committee had examined and found truly enrolled a bill of the House of the follow- ing title, which was thereupon signed by the Speaker: H.R. 4106, An act for the relief of certain Officerg and employees of the Foreign Serv- ice of the United States who, while in the course of their respective duties, suffered losses of personal property by reason of war conditions, CONGRESSIONAL RECORD—HOUSE The SPEAKER announced his signa- ture to an enrolled bill of the Senate of the following title: 8.1282, An act ta authorize grants under the Federal Airport Act for minor projects at major airports, and for other purposes, BILLS PRESENTED TO THE PRESIDENT Mrs. NORTON, from the Committee on House Administration, reported that that committee did on February 3, 1950, pre- sent to the President, for his approval, bills of the House of the following titles: H.R. 322. An act to transfer funds to the town of Craig, Alaska; H.R. 746. An act for the relief of the legal guardian of August Michela, a minor; H.R. 2585. An act to amend the Tariff Act of 1930 to provide for exemption from duty of certain metallic impurities in tin ores and concentrates when such impurities are not recovered; H.R. 4387. An act to authorize relief of au- thorized certifying officers of terminated war agencies in liquidation by the Treasury De- partment; and H.R. 6212. An act to amend section 5 of the Federal Firearms Act. ADJOURNMENT Mr. IRVING. Mr. Speaker, I move that the House do now adjourn. The motion was agreed to; accordingly (at 5 o’clock p. m.) the House adjourned until tomorrow, Wednesday, February 8, 1950, at 12 o’clock noon. EXECUTIVE COMMUNICATIONS, ETC. Under clause 2 of rule XXIV, executive communications were taken from the Speaker’s table and referred as follows: 1213. A letter from the Acting Attorney General, transmitting a request for the re~ turn of the case of Michele Pennino, file No. A-3546502 CR 25827, submitted on January 16, 1950, with other cases involving suspen- sion of deportation; to the Committee on the Judiciary. 1214, A letter from the Archivist of the United States, transmitting a report of the Archivist of the United States on records proposed for disposal in accordance with provisions of the act approved July 7, 1943 (57 Stat. 380), as amended by the act ap- proved July 6, 1945 (59 Stat. 434); to the Committee on House Administration. 1215. A letter from the Director, Office of Scientific Personnel, National Research Council, transmitting a letter stating his earnest plea that the bill H. R. 4846 be brought up for consideration by the Congress on February 27, 1950; to the Committee on Interstate and Forelgn Commerce. 1216. A letter from the Acting Secretary of the Treasury, tranamitting a report listing the tort claims approved for payment for the fiscal year 1949 and setting forth the name of each claimant; to the Committee on the Judiciary. 1217. A letter from the Administrator, Federal Security Agency, transmitting the Annual Report of the Bureau of Employees’ Compensation, Federal Security Agency, for the fiscal year 1949; to the Committee on Education and Labor. ee REPORTS OF COMMITTEES ON PRIVATB BILLS AND RESOLUTIONS Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and reference to the proper calendar, as follows: Mr. GOSSETT: Committee on the Judi- Glary. H.R.677. A blll for the relief of Nico- FEBRUARY 7 Jetta and Guilia Pontrelli; with an amend- ment (Rept. No. 1577). Referred to the Com- mittee of the Whole House. Mr. FEIGHAN: Committee on the Judici- ary. H. R, 1866. A bill for the relief of Honorio Canciller Evangelista; with an amendment (Rept. No. 1578). Referred to the Committee of the Whole House. Mr. CASE of New Jersey: Committee on the Judiciary. H. R. 27065. A bill for the rellef of Martin Kenneth Ikeda; with an amendment (Rept. No. 1579). Referred to the Committee of the Whole House. Mr, FELLOWS: Committee on the Judici- ary. H. R. 3018. A bill for the relicf of Camilla Fabris; with an amendment (Rept. No. 1580). Referred to the Committee of the Whole House. Mr. GOSSETT: Committee on the Judici- ary. H.R, 4015. A bill for the relief of Kate Laursen; with an amendment (Rept. No. 1581), Referred to the Committee of the Whole House. Mr, WALTER: Committee on the Judicl- ary. H. R. 4532. <A bill for the relief of Dr. Ta Fu Wu; without amendment (Rept. No. 1682). Referred to the Committee of the Whole House. Mr. FEIGHAN: Committee on the Judict- ery. H. R. 6566. A bill for the relief of Dr. Agostino DeLisi; without amendment (Rept. No. 1588). Referred to the Commit- tee of the Whole House. Mr. GRAHAM: Committee on the Judict- ary. H. R. 6271. A bill for the relief of Hamako Amano; with an amendment (Rept. No. 1584). Referred to the Committee of the Whole House. Mr. FEIGHAN: Committee on the Judi- clary. H.R.6344. A bill for the relief of Mrs. William Y. Imanaka; with an amend- ment (Rept. No. 1585). Referred to the Committee of the Whole House. Mr. GRAHAM: Committee on the Judi- ciary. H.R.6414. A bill for the relief of Mrs. Chikako Mary Ohori Hori; with an amendment (Rept. No. 1586). Referred to the Committee of the Whole House. Mr. FELLOWS: Committee on the Judici- ery. H.R.6589. A bill for the relief of Mitsue Miyamoto; without amendment (Rept. No. 1687). Referred to the Com- mittee of the Whole House. Mr. CASE of New Jersey: Committeo on the Judiciary. H.R. 6689. A bill for the re- Nef of Mitsuko Uemura; without amend- ment (Rept. No. 1588). Referred to the Com- mittee of the Whole House. Mr. CHELF: Committee on the Judiciary. H.R. 6756. A bill for the relief of Arthur Chen Shu Jee; with an amendment (Rept. No. 1669). Referred to the Committee of the Whole House. Mr. FEIGHAN: Committee on the Judici- ary. H.R. 6787. A bill for the relief of Mrs. Kyoko Nakamura Kornhauser; without amendment (Rept. No. 1590). Referred to the Committee of the Whole House. Mr. CASE of New Jersey: Committee on the Judiciary. H.R. 6894. A bill for the relief of Mrs. Nobuko Eto Heard; without amend- ment (Rept. No. 1591). Referred to the Com- mittee of the Whole House. Mr. WALTER: Committee on the Judici- ary. H.R.7036. A bill for the relief of Hisako Sakata Ikezawa; without amendment (Rept. No. 1692). Referred to the Com- mittee of the Whole House. PUBLIC BILLS AND RESOLUTIONS Under clause 3 of rule XXII, public bills and resolutions were introduced and severally referred as follows: By Mr. GRANAHAN: H.R.7177. A bill to prevent military per- sonnel from replacing civilians in the De- partment of Defense; to the Committee on Armed Services.
1950 By Mr. JACKSON of California: H.R.7178. A bill to amend Public Law 439, Eighty-first Congress, cited as the Agri- cultural Act of 1949; to the Committee on Agriculture. By Mr. KEATING: H.R. 7179. A bill to amend section 811 of the Internal Revenue Code; to the Commit- tee on Ways and Means. By Mr. KING: H.R. 7180. A bill to provide that the Scc- retary of the Treasury shall make annual re- ports to the Congress of tax inequities or loopholes which have come to his attention in the administration of the internal-reve- nue laws; to the Commitiee on Ways and Means. By Mr. NIXON: H.R, 7181. A bill to amend Public Law 439, Elghty-first Congress, cited as the Agri- cultural Act of 1949; to the Committee on Agriculture. By Mr. O'HARA of Minnesota (by re= quest): H OR. 7182. A bill to amend the District of Columbia Revenue Act of 1949; to the Com- mittee on the District of Columbia. By Mr. O’NEILL: H.R. 7183. A bill to amend section 82 of the act approved April 30, 1900 (31 Stat. 157; 48 U.S. C., 1946 edition, sec. 632), entitled “An act to provide a government for the Territory of Hawaii’; to the Committee on Public Lands. By Mr. PATMAN: H.R 7184. A bill to amend the Reconstruc- tion Finance Corporation Act, as amended, in order to provide more effective financial assistance for small business; to the Com- mittee on Banking and Currency. By Mr. RAMSAY: H.R.7185. A bill to amend Public Law 359, chapter 287, Seventy-elghth Congress, second session; to the Committee on Post Office and Civil Service. By Mr. BATTLE: H.R. 7186. A bill to authorize the Public Printer to furnish copies of the Concres- SIONAL ReEcorpD to the Department of State for distribution to all United States mis- sions ahoard; to the Committee on House Administration. H.R. 7187, A bill to relieve postmasters and other paying cmployees of the postal service from accountabllity for wrong payment of money orders in certain cases, and for other purposes; to the Committee on Post Office and Civil Service, By Mr. CUNNINGHAM: H.R.7188. A bill to amend Public Law 439, Eighty-first Congress, cited as the Agri- cultural Act of 1949, to the Committce on Agriculture. By Mr. WERDEL: H.R.7189, A bill to amend the Agricul- tural Act of 1949 and authorize a stamp plan; to the Committee on Agriculture. By Mr. BEALL: H.R.7190. A bill for the relief of depend- ents of persons Killed in collision of air- planes, and for other purposes; to the Come mittee on the Judiciary, H.R.7191. A bill for the rellef of depend- ents of persons killed in collision of atr- planes, and for other purposes; to the Com- mittee on the Judiciary. By Mr. GARMATZ: H.R.7192. A bill to provide benefits for the widows of certain persons who were re- tired or are eligible for retirement under section 6 of the act entitled ‘An act to au- thorize aids to navigation and for other works in the Lighthouse Service, and for other purposes,” approved June 20, 1918, as amended; to the Committee on Post Office and Civil Service. By Mr. HELLER: H.R. 7193, A bill to exempt amounts paid for admissions to museums from the Federal tax on admissions; to the Committee on Ways and Means, CONGRESSIONAL RECORD—SENATE By Mr. SHELLEY: H. J. Res. 415. Joint resolution designating the calendar year 1950 as “American Enter- prise Centennial Year”; to the Committee on the Judiciary. By Mr. SMITH of Wisconsin: H. Res. 462. Resolution to authorize the Committee on Foreign Affairs to investigate and study the extent to which subversive ac- tivities in the Department of State have in- fluenced, and are influencing, the foreign policy of the United States; to the Commit- tee on Rules. By Mr. JAVITS: H. Res. 463. Resolution to encourage a peaceful, prosperous, and united Ireland, but without imposing any particular form of political or economic association upon its people; to the Committee on Foreign Affairs, PRIVATE BILLS AND RESOLUTIONS Under clause 1 of rule XXII, private bills and resolutions were introduced and severally referred, as follows: By Mr. BOLLING: H.R. 7194, A bill for the relief of Mrs. Ret ‘Yamada Munns and Edward Lee Munns; to the Committee on the Judiciary. By Mr. FARRINGTON: H.R. 7195. A bill for the relief of Mrs. Takino Kajikawa; to the Committce on the Judiciary, H.R. 7196. A bill for the relief of Sumie Kira Sakamoto; to the Committee on the Judiciary. By Mr. GRANGER: H.R. 7197. A bill for the relief of Stanley Stringham; to the Committee on the Judi- clary. By Mr. JAVITS: H R.7198. A bill for the rellef of Victor Antos; to the Committee on the Judiciary. H.R. 7199. A bill for the relief of Nobuko Maeda; to the Committee on the Judiciary. By Mr. KARST: H BR 7200. A bill for the relief of Chu Bud Yick, to the Committee on the Judictary, By Mr. KEATING: H R 7201. A bill for the relief of Miss Maria Pia DiLaura; to the Committee on the Judiciary H R. 7202. A bill for the relief of Alexan- der Newman; to the Committee on the Ju- Qiclary. By Mr. JOSEPH L. PFEIFER: H.R. 7203 A bill for the relief of Vito Manzo; to the Committee on the Judiciary, By Mr. RODINO: H R. 7204. A bill for the relief of Maria Cristina D'Angelo; to the Committce on the Judiciary. By Mr. WALTER: H.R. 7205 A bill for the relief of Mr. and Mrs. Theodore Ling (or Lin) and their two children; to the Committee on the Judi- clary. By Mr. WILLIAMS: H R.72C6. A bill for the relief of Johan Wilhelm Adriaans; to the Committee on the Judiciary. PETITIONS, ETC. Under clause 1 of rule XXII, petitions and papers were laid on the Clerk’s desk and referred as follows: 1804. By Mr. CASE of South Dakota: Peti- tion of Mrs, Glen Ostrander and 17 others, from Oelrichs, 5S. Dak., protesting enactment of legislation to reduce and limit the size of parcel-post packages; to the Committee on Post Office and Civil Service. 1805. By Mr. HOEVEN: Petition of Mrs. J. O. Ralph and 84 others, of Sac City, Iowa, requesting passage of a bill to prohibit the transportation of alcoholic-beverage adver- tising in interstate commerce and the broad- casting of alcoholic-beverage advertising 1619 over the radio; to the Committee on Inter- state and Forelgn Commerce. 1806. By Mr. MARTIN of Massachusetts: Memorial of the General Court of Massachu= sotts, advocating that recognition of the Communist government of China by the United States be withheld; to the Committee on Foreign Affairs. 1807. Also, memorial of the General Court of Massachusetts, urging repeal of the war- time e.cise taxes; to the Committee on Ways and Means. 1808 By Mr. RICH: Petition of the Colum- bilan Literary Society of Mansfield, Tioga County, Pa., in opposition to proposed com- pulsory health-insurance legislation or any Government medicine known to many as socialized medicine, and favoring the exten- sion of public and private health services and the preservation of a free medical profession; to the Committee on Interstate and Foreign Commerce. 1809. Also, petition of the Woman's Club of Ulysses, Potter County, Pa., member of the Pennsylvania Federated Women’s Clubs, in opposition to any form of socialized medicine or compulsory health-insurance legislation; to the Committee on Interstate and Foreign Commerce. 1810. Also, petition of the Business and Professional Women’s Club of Williamsport, Pa; expressing opposition to compulsory Government-provided medical care; to the Committee on Interstate and Foreign Com- merce, 1811 By Mrs. ROGERS of Massachusetts: Memortal of the General Court of Massachu- setts, memorializing the Congress of the United States to withhold recognition of the Communist government of China; to the Committee on Foreign Affairs. 1812. Also, memorial of the General Court of Massachusetts, memorializing the Con- gress of the United States to enact legisla- tion repealing the wartime excise taxes; to the Committee on Ways and Means. 1813. By Mr. WHITTINGTON: Memorial of the Mississippi Legislature, condemning statements of Secretary Acheson of loyalty to Alger Hiss, and requesting investigations as to loyalty, to the Committee on Foreign Af- fairs. 1814. Also, memorial of the Legislature of Mississippi, to prevent Federal liquor licenses in dry States; to the Committee on the Judi- ciary. SENATE Wepnespay, Fesruary 8, 1950 (Legislative day of Wednesday, January 4, 1950) The Senate met at 12 o’clock merid- ian, on the expiration of the recess. The Chaplain, Rev. Frederick Brown Harris, D. D., offered the following prayer: God of all mercy, bowing at this noon- tide altar may we be vividly conscious that we need not turn back to bygone centuries to hear Thy voice, as if Thou dost speak to men no longer in the living present. Give us ears to hear Thy im- perial imperatives, above the noise of crashing systems, yea, in and through the change and confusion of our day. So hearing and heeding the voice divine, may our devotion and compassion help to heal the open sores of the world, as we serve the present troubled age. In these days freighted with destiny, keep us true to our highest and to Thy unceasing challenge to our best. We ask it in the dear Redeemer's name. Amen,
1620 THE JOURNAL On request of Mr. Haypen, and by unanimous consent, the reading of the Journal of the proceedings of Tuesday, February 7, 1950, was dispensed with. MESSAGE FROM THE PRESIDENT A message in writing from the Presi- dent of the United States submitting a nomination was communicated to the Senate by Mr. Miller, one of his secre- taries. CALL OF THE ROLL Mr. HAYDEN. I suggest the absence of a quorum. The VICE PRESIDENT. The Secre- tary will call the roll. The roll was called, and the following Senators answered to their names: Anderson Hoey Millikin Benton Holland Mundt Brewster Humphrey Murray Bricker Hunt Myers Bridges Ives Neely Butler Jenner O’Conor Cain Johnson, Colo. O'Mahoney Capehart Johnson, Tex. Robertson Chapman Johnston, 8. C, Russell Connally Kefauver Saltonstall Cordon Kem Schoeppel Darby Kerr Smith, Maine Donnell Kilgore Bmith, N. J. Douglas Knowland Sparkman Downey Leahy Stennis Ecton Lehman Taft ENlender Lodge Taylor Flanders Lucas Thomas, Oxla, Frear McCarran ‘Thomas, Utah Fulbright McCarthy Tobey George McClellan Watkins Gillette McFarland Wiley Gurney McKellar Williams Hayden McMahon Withers Hendrickson Magnuson Young Hickenlooper Martin Hill Maybank Mr. MYERS. I announce that the Senator from Virginia [Mr. Byrp] and the Senator from Mississippi {[Mr. East- LAND] are absent on official business. The Senator from New Mexico [Mr. Cuavez] is necessarily absent. The Senator from North Carolina (Mr. GRAHAM] is absent by leave of the Senate on official business. The Senator from Rhode Island [Mr. GREEN], the Senator from Louisiana [Mr. Lone], the Senator from Florida [Mr. Perrer], and the Senator from Mary- land |Mr, TypIncs] are absent on public business. Mr.SALTONSTALL. Iannounce that the Senator from Vermont [Mr. AIKEN], the Senator from Idaho [Mr. Dwor- s8HAK], the Senator from Michigan [Mr, Frrcuson], the Senator from North Da- kota (Mr. Lancer], and the Senator from Minnesota [Mr. THYE] are absent by leave of the Senate. The Senator from Nevada [Mr. Ma- LONE] and the Senator from Oregon [Mr. Morsxz] are absent on official business. The Senator from Nebraska [(Mr. WuHekry) and the Senator from Michigan [Mr. VANDENBERG] are necessarily absent. The VICE PRESIDENT. A quorum is present. LEAVE OF ABSENCE On request of Mr. SALTONSTALL, and by unanimous consent, Mr. DworsHak was granted leave of absence beginning today and continuing through next Monday. On his own request, and by unani- mous consent, Mr. DONNELL was granted CONGRESSIONAL RECORD—SENATE leave of absence from 5 o’clock this after- noon until Monday, February 13. Mr. CAPEHART, Mr. President, I ask unanimous consent to be absent from the Senate from the close of business today until February 17, in order that I may make some Lincoln Day speeches and incidentally talk a little politics. The VICE PRESIDENT. Without ob- jection, the Senator’s request to be ab- sent will be granted. Mr. LUCAS. Mr. President, I was thinking seriously of objecting to the request, but knowing how forceful the Senator from Indiana is in all his speeches, I cannot object to his request to go to the hustings at once, Mr. CAPEHART. Mr. President, I simply wished to be honest in describing what I was going to do. Mr. LUCAS. The Senator need not make that observation; all of us know that he is honest at all times. TRANSACTION OF ROUTINE BUSINESS Mr. LUCAS. Mr. President, I ask unanimous consent that Members of the Senate be permitted to introduce bills and joint resolutions, present petitions and memorials, and offer other routine matters for the Recorp and the Appendix, without debate and without speeches. The VICE PRESIDENT. Without ob- jection, it is so ordered. ATTENDANCE OF UNITED STATES MARINE BAND AT CELEBRATION COMMEMORAT- ING BATTLE OF LEXINGTON Mr. SALTONSTALL. Mr. President, at this time I ask the majority leader if, pursuant to the request he has just made, I may carry out a suggestion which I took up with him, to which I believe he agreed. I should like to ask unanimous consent at this time for the consideration of Cal- endar 1261, Senate bill 2681, to authorize the attendance of the United States Ma- rine Band at the celebration commemo- rating the one hundred and seventy-fifth anniversary of the Battle of Lexington. I know there is no objection to it. Mr. LUCAS. Mr. President, I am de- lighted to accommodate the distin- guished Senator from Massachusetts, and suggest that he ask unanimous consent for the immediate consideration of the bill. Mr. SALTONSTALL, I thank the Sen- ator from Illinois, Mr. President, I ask unanimous con- sent for the present consideration of Senate bill 2681. The VICE PRESIDENT. The bill will be stated by title for the information of the Senate. The LEGISLATIVE CierK, A bill (8. 2681) to authorize the attendance of the United States Marine Band at a cele- bration commemorating the one hundred and seventy-fifth anniversary of the Bat- tle of Lexington, to be held at Lexington, Mass., April 16 through 19, inclusive, 1950. The VICE PRESIDENT. Is there ob- jection to the present consideration of the bill? There being no objection, the bill was considered, ordered to be engrossed for a third reading, read the third time, and passed, as follows: Be it enacted, etc., That the President ts authorized to permit the band of the United FEBRUARY 8 States Marine Corps to attend and give con- certa at a celebration to be held April 16 through 19, inclusive, 1950, at Lexington, Mass., commemorating the one hundred and seventy-fifth anniversary of the Battle of Lexington. Src. 2. For the purpose of defraying ex- penses of such band in attending and giving concerts at such celebration there is hereby authorized to be appropriated a sufficient sum to cover the cost of transportation and pullman accommodations for the leaders and Members of the Marine Band, and allowance not to exceed $3 per day each for additional traveling and living expenses while on duty, such allowance to be tn addition to the pay and allowance to which they would be en- titled while serving their permanent station. EXECUTIVE COMMUNICATIONS, ETO. The VICE PRESIDENT laid before the Senate the following letters, which were referred as indicated: Rerort or SECRETARY OF THE TREASURY A letter from the Secretary of the Treasury, transmitting, pursuant to law, his report on the state of the finances, for the fiscal year ended June 30, 1949 (with an accompanying report); to the Committee on Finance, REporT or GENERAL SERVICES ADMINISTRATION A letter from the Administrator of the General Services Administration, transmit- ting, pursuant to law, a report of the Admin- istratios for the period July 1 through December 31, 1949 (with an accompanying report); to the Committee on Expenditures in the Executive Departments. PETITIONS Petitions were presented, and referred as indicated: By Mr. SALTONSTALL (for himself and Mr. Lopez): Resolutions of the General Court of the Commonwealth of Massachusetts; to the Committee on Finance: “Resolutions memorializing the Congress of the United States to enact legislation re- pealing the wartime excise taxes “Whereas the purpose for which the war- time excise taxes were Imposed ig no longer in existence; and “Whereas these taxes penalize the people who have to buy baby oil, toiletries and cos- metics, electric bulbs, telegraph and tele- phone service, transportation, theater tickets, furs, luggage, sporting goods, jewelry, silver- ware, some appliances, and many other items; and “Whereas these taxes retard business in that not so much merchandise or services are sold because of them: Therefore be it “Resolved, That the General Court of Massachusetts memorializes the Congress of the United States to repeal the said excise taxes, £0 that people will be relieved of this sales-tax burden and business otherwise given new life; and be it further “Resolved, That copies of these resolutions be transmitted forthwith by the State secre- tary to the President of the United States, to the presiding officer of each branch of Con- gress, and to the members thereof from this Commonwealth.” By Mr. LODGE (for htmself and Mr. SALTONSTALL) : Resolutions of the General Court of the Commonwealth of Massachusetts; to the Committee on Foreign Relations: “Resolutions memorialising the Congress of the United States to withhold recognition of the Communist Government in China “Resolved, That the General Court of Massachusetts hereby urges the Congress of the United States to abstain from the taking of any action which would result in the recognition of the Communist Government in China by the United States, and to take
1950 such affirmative action as may be necessary or desirable to prevent the recognition of said government by the United States; and be it further “Resolved, That copies of these resolutions be forthwith transmitted by the secretary of the Commonwealth to the President of the United States, to the Secretary of State of the United States, and to the Senators and Representatives in Congress from this Com- monwealth.” In house of representatives, adopted Janu- ary 25, 1950. LAWRENCE R. GROVE, Clerk. In senate, adopted, in concurrence, Jan- uary 31, 1950. Irvine N. HaypDENn, Clerk. Attest: Epwarp J. CRONIN, Secretary of the Commonwealth, DEMOCRATIZATION OF GERMANY— STATEMENT BY COMMITTEE ON NA- TIONAL AFFAIRS Mr. NEELY. Mr. President, I present for appropriate reference and ask unani- mous consent to have printed in the REc-~ orp a statement, including the signa- tures, recently made by the Committee on National Affairs concerning the democratization of Germany. There is included in it an appeal for govern- mental action. There being no objection, the state- ment was referred to the Committee on Armed Services and ordered to be printed in the Recorp, including the signatures, as follows: We recently emerged victorious from the second of two great wars fought within a single generation to defend democracy. We ale still imperiled by German antidemo- cratic elements as well as by Russian Com- munist aggresston—these threats are not un- related. A major failure to date in the fight against totalitarianism by the democracies has been the Inck of success in developing a democratic Germany essential to the security of the democratic world. While the Russians are building a totalitarianism of the Left in eastern Germany, there is danger of the re- birth of a totalitarianism of the Right in western Germany. Both are antidemo- cratic. An undemocratic Germany, poten- tially an ally of the forces of Communist age gression, is now and will remain a continu- ing threat to the peaceful world freemen seek The minimum objectives proclaimed nec- essary to assure a democratic Germany have not yet been attained. 1. The German economic war potential has not been brought under effective interna- tional control. 2. German industry has not been decar- teilzed. 3. The German federal and state govern- ments have not been effectively denazified as they include many former Nazis and Nazi supporters in key positions, and the all-im- portant civil service has not been liberalized to permit greater employment of existing democratic elements. 4. German educational and cultural in- stitutions have not been democratized. We seek no Carthaginian peace. We be- Neve that the natural, industrial, and human resources of Germany are necessary to the development of a balanced European pros- perity and are therefore essential to the maintenance of international security. But we also firmly believe that these resources threaten world peace unless they are brought within the framework of international con- trol and direction. A true copy. CONGRESSIONAL RECORD—SENATE We therefore call upon the Government of the United States to take the following measures: 1, Forbid the creation of a national army or national police force in western Germany in accordance with the requiremonts of the Occupation statute and the Bonn accord. 2. Declare that it will continue to main- tain occupation forces in western Germany until minimum democratic objectives have been attained and until our withdrawal would clearly not hazard the peace. 8. Insist upon continued and effective in- ternational control of the Ruhr and Rhine industries to insure their peaceful utiliza- tion, and provide for the decartelized integra- tion of the German economy into that of western Europe. 4. Proceed vigorously to support and assist the democratic clements in Germany in the long-term task of democratizing the eco- nomic, political, and cultural institutions of that country. 5. Seek the restoration of German par- ticipation in nonmilitary international ore ganizations at the earliest practicable time as one means of integrating Germany so that it becomes a member in good standing of the family of democratic nations. Committee on National Affairs, 100 East Fiftieth Strect, New York, N. Y.: Samuel Hopkins Adams, New York; Dr. Henry A. Atkinson, New York; Roger N Baldwin, New York, William H. Baldwin, New York; Courtenay Barber, Jr., Illinois; G. M. Bellanca, Delaware; Russell G. Bellezza, Mary= land; Alfred M. Bingham, Connecti- cut, Dr. L. M. Birkhead, New York; Jacob Blaustein, Maryland; Raymond B. Bowen, New York; Mrs. Aida Brecke inridge, New York; Percy S. Brown, New Hampshire, Struthers Burt, Wyo- ming; H. H. Butler, New York; Henry B Cabot, Massachusetts; Samuel Cab- ot, Massachusetts; A. G. Cameron, Ohio; Dean Harry J. Carman, New York; Carl Carmer, New York; Delbert Clark, New York; Rufus E Clement, Georgia; William T. Cobb, New York; William F. Cochran, Maryland; Morris L Cooke, Pennsylvania, Albert 8. Coolidge, Massachusetts; Emmett Core rigan, New York; Frank R. Crosswaith, New York; C. Suydam Cutting, New York; J. Clarence Daniels, Jr, New York; A. Powell Davies, District of Columbia; J. Lionberger Davis, Mis- souri; Joseph M. Dawson, District of Columbia, Dr. Stephen Duggan, Con- necticut; Charles P. Eisenhauer, Ohio; Thomas H. Eliot, Massachusetts; John Ellis, New York; Irving M Engel, New York; Hugo Ernst, Ohio; George Field, New York; Prof. D. F. Fleming, Ten- nessee; Hugh L. Gaddis, Ohio, True man K. Gibson, Jr, Dlinois; Arthur J. Goldsmith, New York, Sylvan Got- shal, New York; D Samuel Gottes- man, New York; Herman A. Gray, Now York; William Green, District of Columbia; Frederick P. Gruenberg, Pennsylvania; Edward O. Hascall, Jr., Michigan; August Heckscher, New York; William H. Hessler, Ohio; Tracy Higgings, New York; Melvin D. Hil- dreth, District of Columbia, Gen. John Hilldring, District of Columbia; Rt. Rev. Henry W. Hobson, Ohio; Dr. Bryn J. Hovde, New York; B. W. Huebsch, New York; Miss Alice W. Hunt, Rhode Island; Dr. Horace M. Kallen, New York; Dorothy Kenyon, New York; Prof. Hans Kohn, New York; Charles M. LaFollette, District of Columbia; Andrew M. Law, South Carolina; Goodhue Livingston, Jr., New York; Mrs. Burnett Mahon, New York; Frederick C. McKee, Pennsyl- vania; J. A. Migel, Rhode Island; 1621 Newbold Morris, New York; Edgar A. Mowrer, District of Columbia; Lewis Mumford, New York; P. G. Mumford, New York; William OC. Murray, New York; Charlton Ogburn, New York; Harry A. Overstreet, California; Rt. Rev, G. Bromley Oxnam, New York; E. W. Palmer, Tennessee; James G. Patton, Colorado; Lewis Perry, Massa- chusetts; Prof. Ralph Barton Perry, Massachusetts; Henry V. Poor, New York; Arthur Upham Pope, New York; Richard de Rochemont, New York; Mrs. Tobe D. Rosenblum, New York; Richard B. Scandrett, Jr., New York; Arthur Schlesinger, Jr., Massachu- setts; F. E. Schuchman, Pennsylvania; Aaron Schoen, New York: Mrs. Wil- liam Marston Seabury, New York; Eric Sevareid, District of Columbia; Henry Noble Sherwood, Indiana; Mrs. William Dick Sporborg, New York; Ad- miral William H. Standley, California; Mark Starr, New York; Meter Stein- brink, New York; A. G. Stieglitz, New York; Rex Stout, New York; Clarence Streit, District of Columbia; Herbert Bayard Swope, New York: Telford Taylor, New York; Barent Ten Eyck, New York; F. R. Von Windegger, Mise souri; Westmore Willcox, New York; Justice James H. Wolfe, Utah; Max Zaritsky, New York. TRANSFER OF PUBLIC HEALTH SERVICE OUT-PATIENT DISPENSARY Mr. O’CONOR. Mr. President, I am in receipt of a letter from Rex Wheeler, Jr., chairman, Port Committee Steam- ship Trade Association, of Baltimore, Md., transmitting a resolution adopted by that association, protesting against the proposal to transfer the United States Public Health Service out-patient dis- pensary from the customhouse in Balti- more to the marine hospital. I present the letter and resolution for appropriate reference, and ask unanimous consent that they be printed in the Recorp. There bcing no objection, the letter and resolution were referred to the Commit- tee on Labor and Public Welfare and or- dered to be printed in the Recorp, as follows: Atcoa STEAMSHIP CoMPANY, INC., Baltimore, Md., January 3, 1950. Hon Hersert R O'Conor, United States Senate, Washington, D.C. Dear SENATOR O'Conor: Under date of Dee cember 6, 1948, you wrote to Mr. Stevenson Masson, who was then executive vice presi- dent of the Steamship Trade Association of Baltimore, acknowledging receipt of Mr. Masson's letter which enclosed a resolution against a proposal to transfer the Public Health Service's out-patient dispensary from the customhouse to the marine hospital. Together with his letter, Mr. Masson sent you a copy of the resolution adopted by the Steamship Trade Association. It was unan- imously approved that this out-patient dis- Pensary remain in the customhouse. The Steamship Trade Association now learns that the move to transfer this depart- ment is again under way, and we earnestly request that you use your good offices to do whatever you can to prevent the moving of the out-patient dispensary from its present offices in the customhouse. Your assist- ance in this matter will be greatly appre- ciated by all members of the association, Respectfully yours, REX WHEELER, Jr., Chairman, Port Committee, Steamship Trade Association,
1622 RESOLUTION PASSED BY THE STEAMSHIP TRADE ASSOCIATION, NOVEMBER 9, 1948 Resolution against proposal to transfer United States Public Health Service's out- patient dispensary from custom house to marine hospital, Wyman Park Drive Whereas the administrative functions of local shipping firms have been conducted from offices established since early 1800 in the vicinity of the United States custom- house; and Whereas these locations were selected be- cause of the concentration of allied tnter- ests, including the United States Publio Health Service's out-patient dispensary; and Whereas this dispensary has bcen located in the United States customhouse since the opening of this building in 1907; and Whereas the United States Shipping Com- missioner, United States Coast Guard In- spection Bureau, Civil Service Examination Board, union shipping halls are a.l located in this general area, and Whereas the number of visits to this d.s- pensary approached 19,000 during :ecent fiscal year; and Whereas it is reported this dispensary Will be moved to United States Public Health Service’s Marine Hospital, Wyman Park Drive’ Be it Resolved, That the Steamship Trade Atso- ciation of Baltimore, Inc, go on record with the Surgeon General that, in the best inter- est of all concerned, the out-patient dis- pensary remain in the customhouse Be it further Resolved, That copy of this resolution be sent to Surgeon General, Maryland Members of Congress, and the mayor of the city of Baltimore, requesting that they use their good offices s0 no changes are made to inter- fere with the efficient oprration of United States Public Health Service’s out-patient dispensary at its present location. RECOMMENDATIONS OF COMMISSION ON ORGANIZATION OF EXECUTIVE BRANCH OF GOVERNMENT Mr. O’CONOR. Mr. President, I pre- sent for appropriate reference, and ask unanimous consent to have printed in the Recorp a resolution adoptei by the Study Group of the Maryland Committee for Representative Government, Balti- more, Md., urging the Congress to make effective the recommendations of the Commission on Organization of the Executive Branch of the Government. There being no objection, the resolu- tion was referred to the Committee on Expenditures in the Executive Depart- ments, and ordered to be printed in the ReEcorp, as follows: Wherens Congress cleaily recognized the necessity for government reorganization when it unanimously created the bipartisan Commission on Organization of the Execu- tive Branch of the Government in July 1947; and Whereas Chairman Herbert Hoover and the members of the Commission admirably and efficiently performed their duties of investi- gation and made specific recommendat ons concerning— 1. The elimination of expenditures to the lowest amount consistent with the efficient performance. The elimination of duplica- tions and overlappings, and the consolidation of s‘rvices, activities, and functions of a similar nature. 2. The elimination of services, activities, and functions unnecessary to efficient gov- ernment. 3. Definition and Hmitation of executive functions, services, and activitie-; and Whereas there is a universal demand for such economy and efficiency in government by thoughtful, public-spirited men and women throughout the United States; and CONGRESSIONAL RECORD—SENATE Whereas the Commission's report promises lasting benefit to all citizens not only in terms of economy and efficiency but also in terms of the effective use of our resources, human and material, in the cause of world peace and progress; and Whereas an educational program to ac- quaint the public with the findings of the Commiasion report and to stimulate the in- terest of all citizens in continuous partici- pation in the affairs of government on a bi- partisan, voluntary basis has been under- taken by the Citizens Committee for the Hoover Report: Therefore be it Resolved, That the study group of the Maryland Committee for Representative Government at its meeting on the 31st day of January 1950 airges the Congress to muke effective the recommendations of the Com- mirsion by enacting appropriate legislation; That cooperation be given to the educa- tional program of the Citizens Committee for the Hoover Report, That copies of this resolution be sent to appropriate legislative representatives and to the Maryland Citizens Committee tor the Hoover Report, 636 Equitable Building, Bal- timore 2, Md. ELIZABETH C. GRIMES, Chairman. PROTEST AGAINST FEDERAL AUTOMO- TIVE EXCISE TAX Mr O’CONOR. Mr. President, I pie- sent for appropriate reference, a petition adopted by the Maryland Highway Users Conference, consisting of six of the Maryland organizations in the field of automotive transportation, the Balti- more Association of Commerce, and the Maryland State Grange, branding the Federal automotive excise tax as unfair and discriminatory. There being no objection, the petition was referred to the Committee on Fi- nance, and ordcred to be printed in the REcorD, as follows: To the Maryland Members of the Congress of the United States: The Federal automotive excise taxes were imposed as emergency taxes for general reve- nue purposes, for a temporary period. Levied in the depths of the depression, 1932, they have been continued as emergency defense taxes and were increased in 1940, 1941, and 1942 as war-revenue measures. These Federal automotive excise taxes are unfair and discriminatory. This group of Maryland highway users respectfully peti- tions the Maryland Members of Congress to repeal these excise taxes because— 1. They are particularly burdensome to the small-income group 2. They are imposed upon products vital to modern transportation. 8. They result in multiple taxation. 4. One type of transportation is selected for taxation to be used for general tax purposes The Maryland Highway Users Confer- ence—Maryland State Grange, Key- stone Automobile Club, Automobile Club of Maryland, Maryland Petroleum Industries Committee, Maryland Motor Bus Operators Association, Maryland Motor Truck Assoctation, Automobile Trade Association of Maryland, Balti- more Association of Commerce: J. C. Darrell, Secretary. PICKETING OF COURTS Mr. O’CONOR. Mr. President, I am in receipt of a letter from William C. Walsh, Maryland delegate of the Ameri- can Bar Association, of Baltimore, Md., transmitting a resolution unanimously adoptzd by the Hcuse of Delegates of the American Bur Asovc.ation at its annual FEBRUARY 8 meeting in St. Louis, Mo., in September 1949, protesting against the picketing of courts. I present the letter and resolu- tion for appropriate reference, and ask unanimous consent that they be printed in the REecorp. There being no objection, the letter and resolution were ordered to lie on the table and to be printed in the Recorp, as follows: Bautimore, Mp , January 26, 1950. Hon HERseERT R. O'Conor, Senate Office Building, Washington, D.C. DEAR SENATOR: I am enclosing herewith copy of recommendation opposing the picket- ing of courts, which recommendation was unanimously approved by the house of dele- gates of the Ameiican Bar Association at the association's annual meeting in St. Louis in September 1949. It gees without saying that I personally am very much opposed to the picketing of the courts, and am in favor of taking what- ever steps may be necessary to prevent such activities, including the passage of 5. 1681, and I will deeply appreciate your doing everything you can to having this bill brought before the Senate and considered at the earllest possible time, and supporting it when it does come up. I am writing this letter as the Maryland State delegate of the American Bar Associa- tion, but I am also personally interested in seeing that steps are taken to prevent any attempt to intimidate or otherwise tmprop- erly influence the courts by means of picket- ing or other activities. Thanking you for your help in this matter, I am, with kindest regards, Sincerely yours, WiLtraM C WALSH. RECOMMENDATION UNANIMOUSLY APPROVED BY THE HOUSE OF DELEGATIS, AMERICAN BAR ASSOCIATION, IN SEPTEMBER 1949 1. That the picketing of the courts consti- tutes in itself an attempt to intimidate the courts or to influence their action and is a contempt of court. 2. That under their power to protect them- selves from acts of contempt the courts have power to punish for contempt those who are guilty of picketing and should not hesitate to exercise that power. 3. That picketing of the courts is punish- able both summarily and as a crime; and any legislation which specifically applies to picketing should expressly recognize and pre- serve the power of the court to punish such conduct summarily in a contempt pro- ceeding. 4. That the association approves and rec- ommends 8. 1681 as a Clarification of what it conceives to be the present power to pun- ish for contempt any interference with the orderly administration of justice. BILLS AND JOINT RESOLUTION INTRO- DUCED Bills and a joint resolution were intro- duced, read the first time, and, by unan- imous consent, the second time, and re- ferred as follows: By Mr, ROBERTSON: 8.3006 A bill to amend the War Claims Act of 1948 to compensate members of the military and naval forces of the United States for losses sustained as a result of Jap- anese sequestration of bank accounts in the Philippine Islands; to the Committee on the Judictary. By Mr. MCMAHON: 8.3007. A bill for the relief of Stefanie Plister and Hildegarde Weber; to the Com- mittee on the Judiciary,
1950 By Mr. MCCARTHY: 8.3008. A bill for the relief of Lee So Young Miskimen; to the Committee on the Judi- clary. By Mr MYERS: S 3009. A bill for the relief of Rev. Paul Chan (Paul Chi-Look Ting); and S.3010 A bill for the relief of Evelyn Wil- braham; to the Committee on the Judiciary, By Mr. BUTLER: S 3011. A bill for the relief of John E, Davis; to the Committee on the Judiciary. By Mr. MCCARRAN: 8.3012. A bill fo1 the relief of Mrs. Oso J. Petty; to the Committee on the Judiciary. By Mr. SPARKMAN: § 3013 A bill for the relief of Toshiko Ono, to the Committee on the Judiciary. (Mr. HUMPHREY introduced Senate bill 8014, to extend and protect the rights of Federal employees, which was referred to the Committee on Rules and Administration, and appears under a separate heading.) (Mr. LEHMAN introduced Senate Joint Resolution 152, to authorize the issuance of & special series of stamps commemorative of the one hundredth anniversary of the birth of Thomas G. Masaryk, which was referred to the Committee on Post Office and Civil pomuice, and appears under a separate head- ng.) RIGHTS OF FEDERAL EMPLOYEES Mr. HUMPHREY. Mr. President, I introduce for appropriate reference a bill to extend and protect the rights of Federal employees, and I ask unanimous consent that the bill and a statement by me be printed in the REcorp. The VICE PRESIDENT. The bill will be received and appropriately referred, and, without objection, the bill and statement will be printed in the Recorp, The Chair hears no objection. The bill (S. 3014) to extend and pro- tect the rights of Federal employces, 1n- troduced by Mr. HUMPHREY, was re- ccived, read twice by its title, referred to the Committee on Rules and Admin- istration, and ordered to be printed in the ReEcorp, as follows: Be it enacted, etc.— DECLARATION OF POLICY SecTION 1. The Conrress hereby recognizes that (a) the opportunity of Federal em- ployees to participate actively in local politi- cal activities is essential to the vigor of local government and to the strengthening and preservation of democratic institutions in America, and (b) the extension of the oppor- tunity for such participation must be ac- companied by stronger protections against political intimidation, coercion, aud discrim- ination, EXTENSION OF RIGHTS OF FEDERAL EMPLOYEES Sec. 2. (a) The prohibition in the act of August 2, 1939, against the active partici- pation by Federal employees in political management or in political campaigns shall apply only to (1) political activities relating to the election or nomination of any candi- date for the office of President, Vice Presi- dent, presidential elector, Member of the Senate or the House of Representatives, Del- egates or Commissioners from the Terri- tories and insular possessions, Governor of any State, or any State officer elected by the voters of the State as a whole and (2) po- litical activities on behalf of any party or- ganization which requires a Federal em- ployee, as a condition of becoming a candi- date for office, to vote for or support any candidate for the office of President, Vice President, presidential elector, Member of the Senate or the House of Representatives, Delegates or Commissioners from the Ter- ritoies and insular possessions, Governor of CONGRESSIONAL RECORD—SENATE any State, or any State officer elocted by the voters of the State as a whole. (b) Nothing contained herein shall be cone strued as relaxing in any manner the pro- visions of law against the solicitation of po- litical contributions, political coercion, and political discrimination. PROTECTION OF FEDERAL EMPLOYEES Sec. 8. (a) In addition to the other pro- hibitions contained in title 18 of the United States Code, it shall be unlawful for any official in the executive branch of the Federal Government to discriminate against any ap- plicant for a position or against any em- ployee because of his political affillations or political activities, except as such affiliation or activity as constitutes by law a disquali- fication for Government employment, Any person violating this prohibition shall be immediately removed from the position or office held by him, and thereafter no part of the funds appropriated by any act of Con- gress for such position or office shall be used to pay the compensation of such person (b) The Civil Service Commission is here- by authorized and directed to acquaint Fed- eral employees with the provisions of law protecting them against intimidation, coer- cion, and discrimination on account of po- tical activities. (c) The Civil Service Commission is here- by authorized and directed to establish an appeals and complaints procedure whereby any Federal employee who feels that, in con- travontion of Federal law, he has been in- timidated into political activities or dis- criminated against because of his political affiliations or activities, may lodge an ap- peal or complaint with the Civil Service Commission without jeopardizing his future employment, The statement presented by Mr. Humpurey is as follows: STatLMENT BY SENATOR HuMmpiinry Upon INTRODUCTION OF BinL To EXTEND AND Protect THE RicHT: OF FLPERAL EMPLOYEES The first purpose of this bill is to allow Federal employees to participate as ircely as all other American citizens in the processes of local government No matter wheie they may live—whether in the Immediate vicinity of the District of Columbia, at Oak Ridge, Tenn, or in the cities and towns of Minne- gota, lowa, or Mississippi—ederel workers should have the right to participate actively in local political afiatis. Under the proposed measure I now intioduce, the Hatch Act lhmi- tations on political activities by Federal em- ployecs would be fully applicable to Presi- dcntial, congressional, and State-wide elec tions. The second purpose of the bill ts to pro- vide additional protection tor Federal work- ers against intimidation, coercion, nnd dis- crimination Under this bill it would be un- Jewful for any executive official to disciimi- nate apainst any applicant for a position or against any employee because of his political affiliations or political activitics Tals pro- vision would supplement existing legal protections. The Civil Service Commission would also be directed to acquaint Fedcral employees with the various provisions of the law pro- tecting them against intimidation, discrimli- nation, and coercion on account of political activities. Finally, the Civil Service Commission would be directed to establish an appeals and complaints procedure to asdist in the en- forcement of such protective laws. The very existence of such a procedure would go a long way toward dissuading supervisory offi- clals from attempting to dragoon Federal em- ployees into political activities against their will. In a sense, the proposed measure is a sub- stitute for a provision in the pending Hatch Act amendments which deals with the same 1623 subject in a fragmentary menor, The pending amendments to the Hatch Act (H R. 1243) are now before a Senate-House con- ference committee. When H.R 1243 passed the House it dealt with another subject only, but in the Senate conimiltee a new scetion was added lifting Hatch Act restricdions for Federal workers in the vicinity of the Dirtrict of Columbia and in one or two ovher areas throughout the country. Wariovs citizen and Federal-worker orpanizations in Vir- ginia and Maryland have asked for an oppor- tunity to present their views on this subject at a pubdlic hearing before flaal action ts taken If this section is dropped froin the conference committee bill, it will then be possible to deul with the entire question of the political rights of Fedcral workers in an open and orderly manner through the con- sideration of my proposed measure. SUCTIONAL ANALYSIS OF THE BILL Section 1° This section sets forth a decla- ration of policy to serve as the foundation for sections 2 and 3. This declaration con- sists of a congressional recognition that (1) Federal employees have the right to engage actively in local political activities, and (2) stronger protections are needed against political intimidation, coercion, and dis- crimination. Section 2° Under section 2 Hatch Act limi- tations upon political activity are made ap- plicable only to the election or nomination of any candidate for the office of President, Vice President, Presidential elector, Member of Congress, Delegates or Commissioners in the Territories and insular possessions, and State officials elected by the voters of the State asa whole. The Hatch Act limitations are also applicable wherever local political- party regulations rovuire a Federal employee, as a condition of becoming a candidate for office, to vote tor or support any candidate for the above offices Scction 8 This section provides three types of protection for Federal employees. First, existing legal protections are supple- mented by making it unlawful for any execue tive official to discriminate against Federal employees becnuse of political affiations or politicul activities. Second, the Civil Serv- ice Commission is directed to acquaint Fed- eral employees with their rights under the viutious provisions of law that protect them agasnst intimidation, coercion, and disci tmi- nation. Third, the Civil Service Commission is dirccted to establish a special appeals ond complaints procedure to make statutory mo- tections for Federal employees more meane ingful Under such a procedure any Federal employee who felt that he was being illegally coerced or discriminated against would be able to lodge an appeal or complain without jJcopardizing his future employment STAMP COMMEMORATING BIRTH OF THOMAS G. MASARYK Mr. LEHMAN. Mr. President, I intro- duce for appropriate reference a joint resolution providing for the issuance of a special postage stamp commemorating the birth of the great Czech patriot, Thomas G. Masaryk. I ask unanimous consent that the joint resolut.on and an explanation by me ke printed in the Rec- ORD The VICE PRESIDENT. The joint resolution will be rece:ved and appropri- ately referred, and without objection, the joint resolution and exnvlanatory statement will b printed in the Rrcorp, The joint resolution (S. J. Res. 152) to authorize the issuance of a special series of stamps commemorative of the one hundredth anniversary of the birth of Thomas G. Masaryk, introduced by Mr. LEHMAN, Was received, read twice by its title, referred to the Committee on Post
1624 Office and Civil Service, and ordered to be printed in the Recorp, as follows: Resolved, etc., That the Postmaster Gene eral is authorized and directed to prepare lor issuance, on as early a date as practicable during the calendar year 1950 a special series ot 3-cent postaye stamps, of an appropriate design, which shall include a likeness of Thomas G. Masaryk, in commemoration of the one hundredth anniversary of the biith of Thomas G. Masaryk, the founder and first President of Czechoslovakia, The explanatory statement presented by Mr. Lexnman is as follows: REMARKS BY SENATOR LEHMAN ON INTRODUCTION OF JOINT RESOLUTION FOR THE ISSUANCE OF A STAMP COMMEMORATING THE BIRTH OF THOMAS G, MASARYK On March 7, the Czechoslovak people will celebrate the hundredth anniversary of the birth of Thomas G. Masaryk, the founder and the first president of the Republic of Czecho- slovakia. Millions of Czechoslovaktans who for the second time in a generation have bee come victims of a toreign and tyrannical dic~ tatorship, can do little else than offer a silent prayer for liberation on the anniversary of the birth of this great statesman and idealist. Thomas Masaryk had close ties with us. He lectured in our universities and worked closely with President Woodrow Wilson dure ing the First World War. He proclaimed the i4ndependence of his country on American 8011 on October 18, 1918, here tn the city of Washington. I tirst knew him when he was a frequent visitor to the Henry Street Settlement where I, as @ young man, worked. I shall always value my close friendship with this man whom I regarded as onc of the most just and noble statesmen of this century. His son, Jan, was also my good friend and we worked very closely during the time I was director general of UNRRA. Because of his deep loyalty to the ideals of his father, Jan, the late Foreign Minister of Czechoslovakia, lost or gave up his life in the aftermath of the Communist coup d'état. We shall probably never know the full story of his tragic death. Today the Masaryr ideals of democracy, of humanism and liberalism—the very name of Thomas Masaryk are suppressed in his native land. Even his books are banned. I feel most deeply that we should do our utmost to encourage Masaryk’s people in their continuing struggle to regain their lost liberties and to reestablish their democracy. I am therefore introducing a joint resolu- tion calling for the issuance of a Masaryk centennial stamp here in the United States, I believe it would enable the million Ameri- cans of Czechoslov;k origin to let thelr friends tn the old country know that our great democracy is Joined with them in the fight for freedom. I hope that this resolution will meet with the speedy approval of my colleagues in both Houses of Congress. I have written to the Postmaster General urging that the stamp be issued so that it may be available on March 7. I have also deemed this matter important enough to write to the Secretary of State, Mr. Acheson, asking him to endorse this project as con= sistent with our policies of encouraging the growth of freedom throughout the world. EXTENSION OF FEDERAL OLD-AGE AND SURVIVORS INSURANCE SYSTEM—~ AMENDMENT Mr. O’'CONOR submitted an amend. ment intended to be proposed by him to the bill (H. R. 6000) to extend and im- prove the Federal Old-Age and Survivors Insurance System, to amend the public assistance and child welfare provisions of the Social Security Act, and for other CONGRESSIONAL RECORD—SENATE purposes, which was referred to the Com- mittee on Finance, and ordered to be printcd. : PENSIONS OF CERTAIN VETRRANS AND THEIR WIDOWS AND CHILDREN— AMENDMENTS Mr. MCCARTHY submitted amend- ments intended to be proposed by him to the bill (H, R. 4617) to liberalize the re- quirement for payment of pension in certain cases to veterans and their widows and children, and for other pur- poses, which were referred to the Com- mittee on Finance and ordered to be printed. AMERICA’S EXPANDING ECONOMY—AD- DRESS BY SENATOR KILGORE [Mr. NEELY asked and obtained leave to have printed in the Reconp the address de- livercd by Senator Ki1core, before the con- gressional district meeting of the West Vir- ginla Petroleum Association, tn Charleston, W. Va., on February 2, 1950, which appears in the Appendix.] AWARD OF POOR RICHARD MEDAL OF ACHIEVEMENT TO PAUL G. HOFFMAN— ADDRESSES BY SENATOR MYERS AND MR. HOFFMAN [Mr. MYERS asked and obtained leave to have printed in the Recorn addresses de- livered by him and by Mr. Paul G. Hoffman on the occasion of the award of the Poor Richard Medal of Achievement to Mr. Hoff- man at the annual Franklin Day celebration in Philadelphia, January 17, 1950, which ap- pear in the Appendix | ROOSEVELT DAY DINNER ADDRESS BY SENATOR HUMPHREY {Mr. MYERS asked and obtained leave to have printed in the Recorp the Roosevelt Day dinner address delivered by Senator Humpuerey, national chairman of the Ameri- cans for Democratic Action, at Pittsburgh, Pa., January 24, 1950, which appears in the Appendix.]} JACKSON-JEFFERSON DAY DINNER AD- DRESS BY HON. OSCAR L. CHAPMAN [Mr. MYERS asked and obtained leave to have printed in the Rrcorp the Jackson- Jefferson Day dinner address delivered by Hon. Oscar L. Chapman, Secretary of the Interior, at Los Angeles, Calif., January 23, 1950, which appears in the Appendix ] FREEDOM THROUGH THE MARSHALL PLAN AND THE TRUMAN DOCTRINE— ADDRESS BY SENATOR MYERS [Mr. MYERS asked and obtained leave to have printed in the Recorp an address on the subject Freedom Through the Marshall Plan and the Truman Doctrine, delivered by him at the mass meeting of the Ahepa Chapters at the Pythian Temple in the city of New York, which appears in the Appendix ] MIDDLE-INCOME HOUSING—NEWS LET- TER BY SENATOR MYERS [Mr. MYERS asked and obtatned leave to have printed in the Recorp a news letter by him to the people of Pennsylvania discussing middle-income housing, which appears in the Appendix. ] HARMONY IN THE ARMED SERVICES~ INTERVIEW ‘WITH GENERAL EISEN- HOWER [Mr. MCCARTHY asked and obtained leave to have printed in the Rrcorp an article en- titled “Harmony tn the Armed Services, an Exclusive Interview With General Eisen- hower,” from the United States News and World Report, which appears in the Ap- pendix. ] FEBRUARY 8 NATIONAL SECURITY AND INDIVIDUAL FREEDOM—STATEMENT BY RESEARCH AND POLICY COMMITTEE OF THE CON- MITTEE FOR ECONOMIC DEVELOPMENT {Mr. BENTON asked and obtained leave to have printed in the Reconp a statement on national policy entitled “National Security and Our Individual Freedom,” issucd by the Research and Policy Committee of the Com- mittee for Economic Development, on De- ccomber 14, 1949, which appears in the Ap- pendix ] FIFTY MILLION BUSHELS OF POTATOES [Mr. FLANDERS asked and obtained leave te have printed in the Recorp a letter from Mr. Harold K. Burt and others dated Febru- ary 3, 1950, on the subject of the potato surplus, which appears in the Appendix.) POLICY STATEMENT OF NEW YORK YOUNG REPUBLICAN CLUB [Mr. IVES asked und obtained leave to have printed in the Rrcorp the sectlons on rent control, agriculture, wasteful big Govern- menu, private enterprise, public regulation of business, taxation, and the citizen in poli- tics, from a policy statement entitled ‘“Blue- print for a Better America” issued by the New York Young Republican Club, which appears in the Appendix ] NATIONAL SECURITY RESOURCES BOARD—ARTICLE BY GEORGE DIXON [Mr. CAIN asked and obtained leave to havo printed in the Recorp a column en- titled “Washington Scene,” by George Dixon, from the Washington Times-Herald of Febru- ary 8, 1950, which appears in the Appendix. ] WAR ON RUSSIA'S SIDE—ARTICLE BY T. H. TETENS [Mr. GILLETTE asked and obtained leave to have printed in the Recorp an article cn- titled “New German Blueprint: War on Rus- sia’s Side,” written by T. H. Tetens, and published in the United Nations World of December 1949 which appears in the Ap- pendix, | NATIONAL ‘YOUTH REHABILITATION CENTER OF JERUSALEM HEBRON YESHIVAH [Mr. LEHMAN asked and obtained leave to have printed in the Rrecorp a statement from the Journal of Jerusalem Hebron Yeshivah, to be published on March 19, 1950, which ap- pears in the Appendix.] NOMINATION OF MATTHEW E WELSH TO BE UNITED STATES ATTORNEY, SOUTH- ERN DISTRICT OF INDIANA The VICE PRESIDENT. The Chair lays before the Senate a message from the President correcting the name of a nominee whose nomination has already been confirmed, and calls it to the atten- tion of the Senator from Nevada [Mr. McCarran], The message will be read. The message was read, as follows: I nominate Matthew E. Welsh to be United States attorney for the southern district of Indiana, vice B. Howard Caughran, term ex- pired. This is to correct the nomination sent to the Senate on January 17, 1950, and con-« firmed January 31, 1950. Mr. McCARRAN, Mr, President, the nominee in this instance is one and the the same person as the one whose nom- ination was previously confirmed. The nomination was considered by the Judi- ciary Committee, but, unfortunately, an error crept into the initials, changing an “E” toa “B.” I ask unanimous consent,
1950 as in executive session, for the present consideration of the nomination. The VICE PRESIDENT. Is there ob- jection? Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. McCARRAN. I yield. Mr. SALTONSTALL. I should like to ask the Senator from Indiana [Mr, CarruartT! if this nomination is ap- proved by Republican Members. I un- derstand there is no objection. Mr. CAPEHART. Mr. President, we are delighted to approve the nomina- tion. The VICE PRESIDENT. Without ob- jection, as in executive session, the nom- ination is confirmed; and, without ob- jection, the President will be notified forthwith. INTERNATIONAL CONTROL OF ATOMIC ENERGY—ARTICLE BY BERNARD M, BARUCH Mr, FLANDERS. Mr. President, I have in my hand a short article entitled “International Control of Atomic Ener- gy,” written by Mr, Bernard M. Baruch, which will be published in the spring, 1950, issue of Air Affairs. I ask unani- mous consent that the article be printed in the body of the Recorp as a part of my remarks. There being no objection, the article was ordered to be printed in the Recorp, as follows: INTERNATIONAL CONTROL OF ATOMIC ENERGY (By Bernard M. Baruch) Since the Piesident’s announcement of an atomic explosion in the Soviet Union, there has been much talk of the need for a new approach to the control of atomic energy. Some persons have urged outlawing the atom bomb, others that a truce be de- clared halting the making of atomic weapons in both Russia and the United States. At @ recent meeting in New York, the United Nations General Assembly urged the Atomic Energy Commission to explore anew the pos- sibtlities of atomic agreement. The failure to control atomic energy is not & pleasant prospect. Still, in considering new approaches to the problem, both those already suggested and those which will be proposed in the future, there are certain principles we dare not lose sight of, unless we are to expose ourselves and the world to destruction. From the outset the essential issue of atomic control has always been real and ef- fective international control. Partial and ineffective control is more dangerous than none at all. In creating the United Nations Atomic Energy Commission, the General Assembly charged it with devising specific proposals not only “for the control of atomic energy necessary to insure its use only tor peace- ful purposes” but also “for effective safe- guards by way of inspection and other means to protect complying states against the haz- ards of violations and evasions.” Those in- structions, to which the Soviet Government agreed, were our charter in preparing the American plan for the International Control of Atomic Eneigy. This emphasis on adequate safeguards was well-considered. First, it was elways recog- nized that the United States’ monopoly in the field of atomic energy could be only a temporary one. Instead of waiting until some other nation had acquired the art of making atomic weapons, the American peo- ple, through their Government, immediately took the lead in pushing for effective, inter- national control, CONGRESSIONAL RECORD—SENATE Second, atomic weapons, being pecullarly suited to surprise attack, were clearly more appropriate to totalitarian than todemocratic countries. Eeing answerable to their people and bound by constitutional processes, dem- ocratic governments cannot unloose surprise attacks as dictatorships have done in recent years. If the democratic powers were not to make themselves a target for some future atomic Pearl Harbor, the control of atomic energy had to be so efiective that no nation could accumulate atomic weapons secretly, Third, there was the unique nature of atomic energy, unlike any other form of en- ergy. ‘Coal, oll, electricity are mighty gen- erators of industrial power but not weapons in themselves. Atomic fuel can serve both as a source of power or as a bomb. The same fissionable material which can be tapped for peaceful constructive purposes can be diverted quickly—and secretly—-into &@ dread weapon of destruction. Atomic energy available for peaceful pur- poses, in short, is inescapably available for military uses as well. Myr. Vishinsky’s boast during the recent General Assembly debate, that the Soviet Union is using atomic energy to level mountains, proved to be a garbling of Russian propaganda. Still, he did register a significant fact about the nature of atomic energy. It is only the intention of the pos- sessor which determines whether atomic en- ercy is to be used to level mountains—or clties. In any control system, nations should not be permitted to possess devices of such power, even if they have promised not to use them. I rather doubt that their con- sciences could stand the strain, under pres- sure of sceming necessity which knows no law, or treaties. To eliminate national rivalries and sus- picions in this most dangerous of fields, it seemed clear that no nation should have un- bridled use of either atomic weapons or the means of producing them And s0 we pro-= posed the creation of an international au- thority which would have physical posses- sion and full operational and managerial control over all dangerous materials and activities in the atomic fleld. This inter- national authority would control all atomic ores as Well os all facilities producing fis- sionable materials. The authority was also to have sufficiently broad powers of inspec- tion to be able to detect with certainty any unauthorized or illegal attempts to produce atomic energy or atomic weapons. The criterion for violation which we en- visioned was a simple one. The very existe ence of an unauthorized activity or facility in any country, or the seizure of an inter- national facility, would be unmistukable evidence that a violation had occurred. Nor did we feel that any nation should be able to obstruct the operation of this inter- national authority by a veto or be able to escape punishment for treaty violations simply by entering a plea of not guilty. We proposed no change in the veto in the Security Council, let there be no misunder- standing on that score. What we did pro- pose is that any atomic treaty, once agreed to by all parties and enacted, should have the binding effect of international law upon all its signatories. We could not accept a treaty which reserved to each nation the right to veto its observance at will. Given these conditions the United States offered to turn over to the international au- thority all the materials, facilities, and knows how in our possession, as well as tho dis- posal of all atom bombs and other atomic weapons. Never in history has any nation made so generous an offer a8 to volunteer to give up the most destructive weapon known, seeking nothing in return but assurance that no other nation be free to make the weapon we had given up. Let me stress that this American plan did not ask the rest of the world to believe in Amcrican promises, nor did it ask mere prom- 1625 ises of any other nation. It set un standards and procedures of performance by which we were as willing to be bound and judged as we insisted that other nations be bound and judged. Except for Soviet Russia and her satellites, practically every nation in the world has ac- cepted the American plan as fair, gencrous, and workable. The original American pro- posals, which I was privileged to present to the United Nations, have been expanded and elaborated by the many nations who have served on the UN Atomic Energy Commis- sion during the last 3 years and approved by the overwhelming majority of UN mem- bers. At its most recent session, 49 nae tions voted to endorse this majority plan, with only Russia and her satellites in the op- position. The Soviet representatives, it is worth bearirg in mind, have rejected the majority proposals in entirety. This is an important consideration in weighing the possibility of compromise. The Soviet objection is not to some one feature or two of the majority plan but to the whole plan. The only counter- proposals which the Soviets have thus far brought forward have been rejected by both the UN Atomic Energy Commission and the General Assembly as worse than no agree- ment xt all. In the matter of international inspection, for example, Soviet proposals are hedged with so many restrictions and vetoes as to mean inspection when, how, and if the So- viet Government should wish it. Certainly no nation can be expected to notify the world that it plans to produce and use atornic weapons in violation of a treaty it has signed. An inspection system which gives @ nation the right to decide when and how it is to be inspected must prove the most dangerous of illusions. The reported atomic explosion in Soviet territory does not lessen the need for a truly effective, enforceable system of control, Nor does it alter the conditions which must be met to achieve that control. To the contrary. If we are to presume that more than one nation knows how to make an atomic weapon, that fact argues all the more forcefully for really effective control as against an illusory contro) which would pe- nalize those nations which observed their agreements to the advantage of those which might not. To destroy all existing stocks of atomic bombs, as sume have urged, would not re- duce the danger of atomic war. As long as nations possessed sizable quantities of fis- sionable material, they could speedily con-= vert that material into new weapons. Again, it has been suggested that a halt be called to any further manufacture of atomic weap- ons; or that a line be drawn outlawing large- scale atomic facilities, as militarily danger- ous, while permitting smail, nonmilitary atomic developments. But how would the nations complying with such a truce be sure that other nations were not violating the truce by secretly building and stock-piling atomic weapons, unless there were a fool« proof system of inspection? In drafting the American proposals on atomic-energy control, it was my hope that success in this endeavor might lead to simi- lar plans for the control of other weapons of mass destruction—even to the elimination of war itself. But no form of disarmament can have reality or security unless accom- panied by an effective system of international inspection, control, and punishment The Kellogg-Briand Pact, it will be recalled, outlawed war. Noble as were the intentions of its sponsors, the pact only exposed those nations which had a conscience to the ag- gression of those which were consclenceless. Notwithstanding the experience of the past, there are some who now propose outlew- ing the atom bom) as if it were another form of poison gas. Under this scheme the United
1626 States and Russia—and presumably all other nations which develop atomic weapons—~ would retain their stock ptles of atomic weap- ons but would agree not to use them. Which- ever nation did use an atom bomb first would stand condemned as an aggressor be- fore world opinion. The effectiveness of such na treaty, it is contended, would not rest on the mere pledged word of nations but on the fear of retaliation, sirce both sides would possess their own atomic weapons, But how would this proposal add to our se- curity and lessen the risk of atomic warfare? The fear of retaliation already exists. No treaty is necessary to brand any nation which uses an atom bomb first as an aggressor. Nor would outlawing the bomb in this fash- jon halt the atomic arms race. If the fear of retaliation were to be kept alive, the United States, the Soviet Union, and other nations would have to continue to press their efforts in competition for ever more destruce tive atomic weapons. The danger is that in outlawing the bomb the American people might become victims of the delusion that the atomic arms race had been halted— when it had not been. If there must be an atomic arme race, let us at least face it with open eyes. Let us not blind ourselves with meaningless verbal formulas which may sound reassuring but which would expose us and most of the world to those who would like to destroy us. As to the moral value of outlawing the atom bomb, why condemn some one form of aggression? More persons were killed tn the flre raids on Tokyo of March 9, 1945, than by the explosion of the atom bomb over Hiroshima. Even without an atom bomb, Russia was laid waste, the cities of Germany reduced to rubble and those of England ter- rorized before that. Under the charter of the United Nations, all member nations have pledged themselves not to commit acts of aggression against one another. If the ob- jective is to put additional moral force be- hind this obligation, which the nations have already assumed, why not specifically define what is meant by aggression—and proceed to enforce that definition? Thus all unpro- voked attacks, whether by atomic or other weapons, would be outlawed. The American position has never been that there could only be one way of controlling atomic energy. What we put forward repre- sented our best thinking. After more than 31% years of universal examination and dis- cussion, it remains the one sound and worke- able plan so far submitted. In the circum- stances the position enunclated by President Truman in his speech on United Nations day seems eminently sound—to stick to the American plan unless and until a better and more effective plan is put forward. And until safe and sure control is obtained every effort must be pressed to maintain our present overwhelming advantage in the de- velopment of atomic weapons—of both those already known and those of a more frightful nature. Some potential atomic develop- ments are so frightening that we instinc- tively shrink from them, but then we must ask Will this dread knowledge be less menac- ing if discovered by others? Nor ts it our security alone which ts at stake. What na- tion in Europe or Asia would have its free- dom today if it had been the Soviet Union and not the United States which held an atomic monopoly these last few years? Any Soviet proposals for the effective con- trol of atomic energy should be welcomed and studied to make certain that they are truly effective and enforceable. But the mere hope of negotiation should not delude us into slowing our own atomic efforts, Harsh and unpleasant as it is, the fact is that an atomic arms race 1s going on—forced by the Soviet refusal to agree to effective juternational control. Only as such control CONGRESSIONAL RECORD—SENATE is achieved can this atomic race be halted— not by shutting our eyes to reality, however grim. Nor should any time be lost in proceeding to develop the best possible system of atomic civilian defense as part of a general pian of mobilization readiness against the danger of possible war. One final thought as to secrecy of atomic information. I sympathize deeply with the scientists in thetr desire to spread the knowle edge they acquire as rapidly as possible for the use of all mankind. I also appreciate the special problem which arises out of the fact that scientists have been accustomed to look to the publication of scientific papers as a means of gaining professional recognition and of sharing their discoveries with their fellows. It would be well to devise some substitute means for recognizing the achieve- ment of scientists working on atomic and other security projects. However, atomic energy was born of the efforts not alone of the nuclear physicist, but of chemists, engle neers, business and industrial managers, our military and political leaders. In fact, all of us contributed to a greater or lesser extent to the huge and costly development, Con- trol of atomic energy transcends the ques- tion of the freedom of scientific inquiry (im- portant as that is) to political, military, social, and moral issues which involve the very survival of our civilization. American progress in atomic energy might be speeded through the widespread dissemi- nation of scientific information. By the same token, such publication must be ex- pected to specd progress in Russia as well. How much was Russian propress spurred by the publication of the Smyth report or by the sale of strategic equipment necessary for atomic development? The advantages of ree leasing any specific piece of atomic informa- tion must be weighed against the risks, with the doubts resolved in favor of American and world security. Science cannot be set completely free in ® world that is not really at peace. The cold war requires all of us to forego some of the ways of peace. No one can say now how long the present struggle will endure, but until peace does come we must hold our resources together, with each of us conscious of the obligations we must bear. It may well be that no atomic energy agreement will be possible until there is an over-all peace settlement. We may have to live with the failure to control atomio energy for the rest of our lives. If that 1s to be our lot, let us face it steadfastly and reso- lutely with faith in the civilization we de- fend. The acid test of the strength of any society 1s the self-discipline of its adherents. THE DISPLACED-PERSONS PROGRAM Mr. McCARRAN. I ask unanimous consent to insert in the body of the Recorp as part of my remarks, not on the subject of the displaced-persons bill, but on the general subject, an article entitled “Maryland Committee Blasts DP Program, Then Resigns,” published in the Washington Post of February 8, 1950. There being no objection, the article ‘was ordered to be printed in the Rxacorp, as follows: DP ProcraM iv Maryann UNpER ATTACK (By John W. Ball) Widespread dissatisfaction among farmers in the Washington area over the resettle- ment of dieplaced persons on nearby farms was given pointed expression in Anne Arundel County, Md., yesterday. There the three-man committee, appointed by Gov. William Preston Lane, Jr., to direct the resettlement program, resigned. A ating- ing criticism of the conduct of the DP pro- FEBRUARY 8 gram, which the three called slovenly as well as wholly ineMicient and uncoordinated, accompanied their resignation. “We have been bitterty disillusioned,” Bene jamin Watkins 8d, of Davidsonville, chair- man; Charles B. Lynch, and J. Irving King wrote. “Our experiences force us to the con-~ clusion that the program as now operated is not in the best interests of the Maryland farmer, not indeed in the best interests of the United States.” The DP situation in Maryland and Vire ginia has been the subject of scores of come plaints. The Maryland Farm Bureau on Jan- uary 11 registered bitter disappointment and asked for stiff laws governing DP's now here. On December $31, a total of 402 families listing 196 persons had been brought into Maryland, records show. Anne Arundel! got fewao than most coune ties. The records a month earlier showed Queen Anne County with 41 families and 11 persons the largest. Howard had 36 families and 88 persons; Carroll 31 families and 78 persons; Charles County 15 families and 67 persons, Prince Georges 13 families and 46 persons, Anne Arundel 2 families and 36 per- s0ns, Montgomery 9 families and 30 persons, Calvert 8 families and 86 persons, and St, Mary's 2 families and 9 persons. In January State officials estimated that 40 percent of the DP's had left their sponsoring farms within a week of their arirval. A recent congreasional report showed Vir- ginia, Maryland, adhd Mississippi as the only three States dissatisfied with operation of the DP program. Maryland farmers, according to David L. B. Fringer, Maryland Employment Service di- rector said, suffer from chronic shortage of skilled farm labor. At the same time there is a surplus of unskilled labor. When the DP program started, it was thought Maryland offered a great opportunity to skilled farm hands. Instead, all types of workers, from dentists and doctors, to butchers, shoemakers, and even a 10-year profeesor of civil engineering in a large European college, were imparted as skilled farm hands. The majority in Maryland were Ukrainians, brought by the United Ukrainian-American Relief Association. Other agencies bringing in DP’s were the National Catholic Welfare Society, the Lutheran League, the Hebrew Immigrant Aid, Church World Service, United Service for the New Americans, and the Friends Society. UKRAINIANS TOP THE LYST “We felt that in giving asylum to the op- pressed and needy refugees we would be giv- ing new hope to people desperately in need of assistance,” the Anne Arundel committee- men wrote. “We assumed that they would be carefully screened, and that we would be opening the door of opportunity to people who were quali- fied for the work that they had represented themselves competent to do * * * and who desired, above all things, to attain citi genship. “DEVOID OF GRATITUDE “It has been our experience that while some are giving a high degree of satisfaction, many who have had extraordinarily fine placements have not only been unqualified for the work they had represented themselves capabie of doing, but have proved themselves Gevoid of gratitude or a sense of moral obli-e gation. “It is an uncontestable fact thet no agency of the Federal Government hes any clear idea of the whereabouts of thousands of refugees who have recently entered the United States,” the letter continued. The program, the three wrote, “as now administered, is cf such dubious value that re can no longer conscientiously participate it"
1950 BIRTHDAY ANNIVERSARIES OF TADEUSZ KOSCIUSKO, ABRAHAM LINCOLN, FREDERIC CHOPIN, AND GEORGE WASHINGTON Mr. WILEY. Mr. President, I send to the desk a statement which I have pre- pared in connection with the forthcom- ing birthdays of four great citizens of the world: Kosciusko, Abraham Lincoln, Chopin, and George Washington. I ask unanimous consent that the text of this statement be printed at this point in the body of the CONGRESSIONAL RECORD. There being no objection, Mr. WILEy’s statement was ordered to be printed in the REcorD, as follows: Koscrusko, CHOPIN, COPERNICUS—A_ TRIB- UTE TO SONS OF POLAND Born IN FEERU- ARY “Jeszcze Polska nie zginela”’—Poland 1s not yet lost.—Joseph Wybicki, Dombrowski, March 1797. Mr, President, I should like to invite atten- tion to the fact that by a heart-warming coincidence of history, the month of Feb- ruary is dear to the hearts of the people of Poland and of their friends in the United States. Why? Because this month saw the birth of many famous sons of Poland just as it saw the birth of America’s greatest Presidents. Yes, this month ts rich with history of those who proclaimed proudly, “Poland is not yet lost.” On February 12, we celebrate the birth of Abraham Lincoln, founder of the Republican Party and sixteenth President of the United States. Abe Lincoln, who emancipated the Negro people from slavery; Abe Lincoln who saved the Union. On February 12, too, we celebrate also the birthday in 1746 of Tadeusz Andrzej Bona- wentura Kosciusko. This great soldier battled heroically for the freedom of Poland. Later, he was instrumental in the emancipa- tion of the American people from slavery to Great Britain, and he performed great serv- ices in the establishment of the American Union, THE FAMOUS BIRTHDAYS ON FEBRUARY 22 Two weeks later, on February 22, we will celebrate the birth of the father of our coun- try, our first President, George Washington. But on that day, too, all Americans, all friends of Poland, all music lovers through- out the world will honor the birth in 1810 near Warsaw of the great Frederic Chopin, the man whose one hundredth anniversary of dcath we commemorated last year. The music of Frederic Chopin, the deeds of Tadeusz Kosciusko like other great con- tributions of sons and daughters of Poland, are the type that are universal to all freedom- loving, culture-loving citizens of America and the world. In addition, I should Ike to point out that later on in the month of February— on the 19th—in the year 1473, occurred the birth of Nicholas Copernicus, founder of modern astronomy. When we recall these great descendants of Poland, when we recite the names of Ignace Jun Paderewski, Marie Sklodowska Curie, and other outstanding Poles, it is not as @ mere tribute to the great past of a people; rather it is with firm confidence in the future free- dom of sons and daughters of Poland. PREVIOUS TRIBUTE TO GENERAL PULASKI In previous issues of the CONGRESSIONAL ReEcorD, I have reviewed the history of Po- land, On October 11, 1949, the one hundred and seventieth anniversary of his death, I stated in tribute to Gen, Casimir Pulaski: “The pages of Polish history from its earll- est beginnings with Mieszke Miecislaw I (who was converted to Christianity and who reigned from 962 to 992) are full of patriotic CONGRESSIONAL RECORD—SENATE sagas of sacrifice and achievement. At one time Poland was the most powerful state in eastern Europe, being composed of Cracovia, Silesia, Cuyavia, Masovia, and Lithuania, As early as 1400 the University of Cracow was & century of world culture. In 1569 Poland reached her greatest territorial expansion— around 380,000 square miles with 15,000,000 people. “But 200 years later, beset by perpetual foreign intrigue, on August 5, 1772, came the first partition of Poland—with a loss of one- third of her territory to other powers. A second partition ensued in 1793—with a loss of more than half her remaining territory and more than 4,000,000 population. This is why the great Kosciusko organized the Polish patriots to regain the soil of the motherland. But hopelessly outnumbered, Kosciusko met defeat on October 10, 1794, and a weakened Poland suffered a third par- tition on October 24, 1795. Thus, Poland ceased to exist as an independent political entity.” I continued at that time with this further summary of history: “From that unfortunate date in 1795 until the outbreak of the First World War, Poland’s sons and daughters bled for freedom time and again. With the spirit of Pulaski and Kosciusko, the patriots rose in revolution after revolution—in November 1830, in Feb- ruary 1846, in 1848, on January 15, 1863—only to be defeated by the foreign enslavers. The years passed, but not Poland’s hunger for freedom, At long last, in November 1918, an independent Poland was reborn as a par- tial fulfillment of Wilson’s 14 points, includ- ing ‘self-determination of people.’ “No one need be told of Poland’s more recent history, with which we are all familiar, culminating in the so-called Soviet-Nazi nonagegression pact of August 1939, which led to the Second World War.” JIOW DEMOCRATS SOLD CATHOLIC POLAND DOWN VOLGA RIVER No, my friends, nor need we retell the in- famous story of what happened to our heroic ally after the end of the Second World War. We know that Poland was dismembered at Yalta when 47 percent of her territory was given to Red Russia and the ground work was laid for the fraudulent election through which Russia took over the Gov- ernment of Poland under a puppet regime. So Poland, which was the first to fight for freedom—Poland which lost 6,000,000 souls killed on the battlefield, shot in street exe- cutions, starved to death, beaten to death in forced labor—Poland whose cities were bombed to rubble, was the first to lose her hard-won freedom at the hands of her al- leged friend in the White House. The Democratic administration in our country which had pretended to be Poland's friend sold Poland down the Volga River. The Democratic Party which eagerly sought the friendship of Polish-Americans had the gall to praise the infamous stab in the back at Yalta. But no friend of Poland will ever forget thg@@ treachery. The rpftocrati Party which knew Cath- Olic Polffid’s deep, unwavering devotion to the church, sold this God-fearing nation at the auction block to the Red antichrist. The Democratic administration, riddled with Red rogues whom it excused and pro- moted, performed this service for interna- tional aammunism and executed this betrayal of world religion. Those are not partisan accusations. Those are the fa of history. What a@ameful stain on the history of Polish-Amefican relations. What a foul as- sault on the memory of Pulaski and Kos- ciusko. HOW KOSCIUSKO AIDED AMERICA Let us take a brief look at Tadeusz Kosci- usko, Exiled from his beloved homeland, he 1627 arrived in Philadelphia In August 1776, but a few short months after the Declaration of American Independence. He drew up plans for fortifying the Delaware River. He erected fortifications which contributed to the bril- Mant victory of American forces over General Burgoyne at Saratoga. On October 13, 1783, Congress made him a brigadier general. The sacrifices which Kosciusko made for Nberty recall to one’s mind the sacrifices which Poles throughout their history have made for freedom. Tadeusz Kosciusko did not 50 much as possess a blanket when he first en- tered the Army. All during the war years, for example, while he was erecting fortifica- tions at West Point and elsewhere, out of his Own meager pay and his own inadequate food supply he sent provisions to English prisons ers whose misery was itself extreme. There is a man of whom any people could well be proud, TRIBUTE TO THE GENIUS CHOPIN But let us now turn to another famous Polish son of February. The facts of Frederic Chopin’s life are even more well known, because in the 39 short years that this genius lived he created mus- ical masterpieces which have become a part of the heritage of western civilization. But patriotism was also in the blood of the Chopins. Frederic Chopin's father, Nicholas, joined the ranks of defendants of Warsaw after Poland lost her independence and the first insurrection led by Kosciusko broke out in 1794. That Kosciusko insurrection, we recall, was directed against czarist dom-~ ination of Poland. It proclaimed the high ideals of freedom and equality which had been inspired by the French and American Revolutions. The uprising was unfortunately suppressed as we have seen, but the ideas behind it could never be vanquished. Neither could there be vanquished the zeal of Frederic Chopin for the freedom of his homeland. He poured out immortal music to that cause and gave his very life in endless work for it. At last when Fred- eric Chopin went to his eternal reward, there was scattered on his coffin the Polish soil from a silver goblet which he had faithfully kept all through the years of exile. Shortly afterward, Chopin's heart was returned to Poland. It is enshrined there in the Church of Holy Cross in Warsaw. Mention of Chopin brings to mind another musical colossus, Ignace Jan Paderewski, whom we recall we saw for the last time in Milwaukee in 1939 at a concert at the audi- torlum. Only superlatives can describe him—greatest pianist of his generation, com- poser, soldier, statesman, Polish patriot— who died June 25, 1941, still serving his be- loved land. REMEMBERING THESE IMMORTALS BY OUR DEEDS Deeds, rather than mere words, count most in true tributes. The greatest tribute that we can pay to these and other sons of Poland, like the greatest tribute we can pay to George Wash- ington and Abraham Lincoln, is by living as they would have us live, acting as they would have us act. Here in the Congress, for example, we have pending before us a new displaced persons bill. One of the necessary features of this bill is to allocate 18,000 visas to veterans of the heroic Polish army in Great Britain. On previous occasions, I have called atten- tion to the magnificent contributions of that Polish army to freedom. It is only fitting that these stalwart battlers for liberty should enjoy liberty on our shores. It is only fit- ting moreover, that we make further necese sary revisions to liberalize the present dis- placed persons statute. Basically, however, the greatest tribute we can pay to a free Poland is by establishing a policy of firm realism with the Soviet Union which now enslaves Poland.
1628 We must end the shameless, wretched pol- icy of appeasement which is symbolized by the treachery of Yalta, when under the cover of secrecy, the freedom of an entire people— a holy people, a valiant people—was bartered away. COMMENT FROM A WISCONSINITE TO SENATOR WILEY I should like to quote now from at least one message which I have received from a constituent in my State commenting upon the problems of present-day Poland and some of my previous comments on them. I believe that this message from Milwaukee, like other expressions which I received from Stevens Point and elsewhere in Wisconsin, bespeak the true patriotism of our Polish- American citizens, and bespeuk, too, their unwavering devotion to the cause of Amer- ican liberty and independence and Polish liberty and independence. This kind mes- sage came to me from the president of a Polish organization in Milwaukee: “Hon. ALEXANDER WILEY, United States Senate, Washington, D.C. “Dear Sir: It was a real pleasure to receive a copy of your tribute to Casimir Pulaski and a free Poland which was inserted in the Con- GRESSIONAL REcoRD on Tuesday, October 11, 1949. “We thank you for the care you have taken in presenting the story of Casimir Pulaski in the light of the past, the present, and the future. To Count Pulaski, an exile from his own country, freedom meant more than life itself; and his one life he did give in the cause of American freedom. The folk tales of Princess Vanda, the pageant of the Little Horse, and the story of the Hejnal were stories of the love of freedom which Poles have cher- ished for generations. The heroism of the millions of Poles 1n World War II is full evidence to the world that Poland stands behind its heritage of freedom. The present tragic dismemberment of Poland and the hold of the Communist state are but further trialg that Poland must endure and conquer to merit the blessings of liberty, independ- ence, and sovereignty. “The exemplification of the love of free- dom which the Polish people have always had for their own country and have shared with the United States from the earliest years through the present is a heartening rec- ollection of the undying will for freedom which prevails in the heart of every Polish- American, “We feel highly privileged that our story has been told again in the Halls of the Con- gress of the United States to once again en- lighten the leaders of our Government of the singleness of our destre for our homeland * ¢* © freedom.” Mr. President, I say in conclusion: “Jeszcze Polska nie zginela.” COLORADO RIVER DAM AT BRIDGE CANYON The Senate resumed the consideration of the bill (S. 75) authorizing the con- struction, operation, and maintenance of a@ dam and incidental works in the main stream of the Colorado River at Bridge Canyon, together with certain appurte- nant dams and canals, and for other purposes. Mr. LUCAS. Mr. President, the pend- ing business is the consideration of Sen- ate bill 75. In view of the fact that a number of Republican Members are now getting ready to move into various sec- tions of the country to appraise and praise the memory of the patron saint of the Republican Party, Abraham Lin- CONGRESSIONAL RECORD—SENATE coln, and also to mend a few political fences which are down, being a very charitable and considerate soul, I desire to cooperate as much as possible with my Republican friends. Therefore, Mr. President, I am going to present to the Senate a unanimous- consent request with respect to the pend- ing measure, which is highly controver- sial. Of course, I do not desire to take any advantage of the situation while these distinguished Members of the Sen- ate are away. I ask unanimous consent that on the calendar day of Tuesday, February 21, 1950, at not later than the hour of 4 o'clock p. m., the Senate proceed to vote, without further debate, upon amend- ments to the bill S. 75 authorizing the construction, operation, and mainte- nance of a dam and incidental works in the main stream of the Colorado River at Bridge Canyon, together with certain appurtenant dams and canals, and for other purposes, and upon the final pas- sage of said bill, provided, first, that no amendment that is not germane to the subject matter of the said bill shall be received; second, that no vote on any amendment or motion shall be taken prior to the hour of 1 o’clock p. m. on said day; and, third, that no amendment shall be in order which has not been formally offered or submitted as a pro- posed amendment prior to the said day of February 21. Ordered further, that the time be- tween 11 o’clock a. m. and 4 p. m. on said day be equally divided between the preponents and the opponents of the said bill and controlled, respectively, by the Senator from Arizona [Mr. McFar- LAND] and the Senator from California [Mr. Downey]. The VICE PRESIDENT. Is there ob- jection to the unanimous-consent re- quest? Mr. DOWNEY, Mr. SALTONSTALL, and other Senators addressed the Chair. The VICE PRESIDENT. Does the Senator from Illinois yield; and if so, to whom? Mr. LUCAS. I yield first to the senior Senator from California. Mr. DOWNEY. Mr. President, reserv- ing the right to object, would the dis- tinguished majority leader think it might be advisable to change the hour of first voting from 1 o’clock until 12? Mr. LUCAS. If that is acceptable to the Senators from Arivona. Mr. HAYDEN. Yes; that is agreeable. Mr. LUCAS. That is agreeable to the majority leader, and I modify the request accordingly. Mr. KNOWLAND. Mr. President, re- serving the right to object, the junior Senator from California wishes to try to work out the situation in a satisfactory manner to all concerned. I do not in- tend to object to the request, but I should like to reserve the right to offer a motion to recommit the bill, and I think it would be entirely in keeping with the idea of germaneness that we not be foreclosed from offering a motion to recommit. It might not be necessary for us to make such a motion if some of the amend- FEBRUARY 8 ments are adopted; in such case, it might be that some Senators who are opposing the bill in its present form might not desire to make a motion to recommit. On the other hand, tf some of the amendments are not adopted, we would not wish to be foreclosed from offering a motion to recommit. Mr. LUCAS. I do not believe the unanimous-consent request forecloses the offering of a motion to recommit. However, I should like to have a ruling from the Chair. The VICE PRESIDENT. The Chair would suggest that under the precedents, unless there is a provision in the request that a motion to recommit will be in order, it would be foreclosed. Mr. KNOWLAND. Then I wonder whether we can have an understanding that we will not be foreclosed from offer- ing a motion to recommit. Mr. LUCAS. Mr. President, a few minutes ago I submitted to the parlia- mentarian the original unanimous-con- sent agreement, as proposed. In it amo- tion to recommit is mentioned. I as- sumed that that had been included in the present unanimous-consent request, be- cause it refers not only to amendments but to motions, as well. Certainly I wish to accommodate the Senator from Cali- fornia and, of course, in the original unanimous-consent proposal we had in- cluded such a provision. If the proposed agreement as now be- fore the Senate forecloses the offering of a motion to recommit, I shall modify my unanimous-consent request so that it will include what the able Senator from California suggests. The VICE PRESIDENT. Is there ob- jection to the request, as modified, sub- mitted by the Senator from Illinois? Mr. McCLELLAN. Mr. President, will the Senator repeat the date specified in the proposal? Mr. LUCAS. On Tuesday, February 21, at not later than the hour of 4 o’clock Pp. m. Mr. McCLELLAN. As I understand the unanimous-consent request, it pro- vides that no amendments shall be of- fered unless they are germane. Mr. LUCAS. The Senator is correct in this understanding. The VICE PRESIDENT. Is there ob- jection to the unanimous-consent re- quest, as modified? The Chair hears none, and the agreement is entered into. The unanimous-consent agreement is as follows: Ordered, by unanimous consent, That on the calendar day of Tuesday, February 21, 1950, at not later than the hour of 4 o’clock p. m., the Senate proceed to vote, without further debate, upon amendments to the bill (8. 75) authorizing the construction, oper- ation, and maintenance of a dam and tnci- dental works in the main stream of the Colo- rado River at Bridge Canyon, together with certain appurtenant dams and canals, and for other purposes, and upon the final passage of the said bill: Provided, (1) That no amend. ment that is not germane to the subject mat- ter of the said bill shall be received; (2) that no vote on any amendment or motion shall be taken prior to the hour of 12 o’clock noon on said day; (8) that no amendment shall
1950 be in order which has not been formally af- fered or submitted as a proposed amendment prior to said day of February 21; and (¢) that a motion to recommit the said bill to the Committee on Interior and Insular Af- fairs shall be in order. Ordered further, That the time between 11 o'clock a. m., and 4 o'clock p. m., on sald day be equally divided between the propo- nents and the opponents of the said bill and controlied, respectively, by the Senator from Arizona [Mr. McFariann] and the Senator from California [Mr. Downey]. LEGISLATIVE PROGRAM Mr. LUCAS. Mr. President, I wish to have the present parliamentary situa- tion thoroughly understood. I think it goes without saying that certainly all the time between now and the 21st of February will not be consumed in debat- ing or discussing Senate bill 75, the measure now pending before the Senate. In the meantime, when we run out of speeches upon the bill in question, I shall not hesitate at such time to request unanimous consent or, if I cannot ob- tain consent, to move to Jay the pending bill temporarily aside, with a view to having the Senate consider other meas- ures which we have agreed can be debated and voted one way or the other during the time when some of our col- leagues on the other side of the aisle are absent from the Senate. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. SALTONSTALL. From the state- ment the majority leader has just made, I understand that he refers to the five measures he mentioned by bill number or resolution number and by calendar number yesterday. So far as I can de- termine from inquiries among Senators on this side of the aisle, it will not be objectionable to have the majority lead- er proceed in the way he has just sug- gested. Am I correct in my understand- ing that the Senator from Illinois has reference to those measures? Mr. LUCAS. The Senator from Mas- sachusetts is correct. Yesterday I made the announcement for the benefit of the Senators who then were present, and also for the benefit of those who might read the announcement this morning in the CONGRESSIONAL Recorp. Those who desire to know the measures we shall take up at one time or another during this period can ascertain them by read- ing the ConcrREssIonaAL Recorr for yes- terday. Mr. SALTONSTALL. Mr. President, will the Senator yield further? Mr. LUCAS. I yield. Mr. SALTONSTALL. Would the Sen- ator from Illinois be willing at this time, or is he ready, to tell the Senate, and particularly the Members on this side of the aisle, whether he intends to have the Senate hold a session on Friday of this week or whether he intends to have the Senate recess from Thursday of this week until Monday of next week or from Friday of this week until Tuesday of next week, or just what his plans are? Mr. LUCAS. I cannot tell the Sena- tor whether we shall make that sort of an arrangement or not. I seriously xXxCVI——103 CONGRESSIONAL RECORD—SENATE doubt it. If there is any business to be done in the Senate, we shall go ahead with it, just as we have in the past. Mr, SALTONSTALL. But the only business will be either Senate bill 175, which is now under discussion, or the measures the Senator mentioned yester- day by calendar number; is that cor- rect? Mr, LUCAS. That is correct. Mr. HAYDEN. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. HAYDEN. It is my understanding that far as the parliamentary situa- tion is concerned, regardless of what business may be pending on the 21st of February, it will be laid aside automati- cally, under the unanimous-consent agreement, and Senate bill 75 will be taken up at that time. Mr. LUCAS. I understand the parlia- mentary situation to be as just described by the Senator from Arizona. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. SALTONSTALL. Will the Senator from Illinois, the majority leader, make the Rrecorp clear on one further point in connection with the procedure? I have in mind the matter of conference reports. There are two conference reports in which there may be considerable inter- est, the one being the report on oleo- margarine and the other the report on the amendment to the Hatch Act. I should merely like to have the majority leader make it clear that those will not be brought up, let us say, next week, or prior to February 20. Mr. LUCAS. If there is any serious ob- jection on the part of anyone to the con- ference reports, obviously they will go over, along with other controversial mat- ters. Mr. SALTONSALL. I understand there is, of course, a great deal of in- terest in the subject of oleomargarine and in the form the conference report may take; so I hope that report in par- ticular will rot be brought up before Feb- ruary 20. Mr. LUCAS. I am not oblivious of the situation respecting the conference re- port on oleomargarine, and I am sure the report will not be brought up until there are present as many Senators as possible. Mr. SALTONSTALL. May I have the assurance with respect to February 20? Will that be the date? Mr. LUCAS. Yes; I agvee with the Senator. Mr. President, I yield the floor. RECONSTRUCTION FINANCE CORPORATION Mr. FULBRIGHT. Mr. President, I wonder whether the Senator from Illinois will be willing to withdraw his objection to Senate Resolution 219, in view of the amendment or modification which I have offered. Mr. LUCAS. Mr. President, I have no objection to the modification of the res- olution in the way the Senator from Ar- kansas suggested to me a moment ago. 1629 Mr. FULBRIGHT. Does the Senator mean, also, that he has no objection to the adoption of the resolution as thus modified or amended? Mr. LUCAS. I have no objection to the adoption of the resolution as modi- fied, if the Senator desires to have that done. Mr, FULBRIGHT. I thank the Sena- tor. Mr. LUCAS. I wish to make this state- ment with respect to the Senator’s res- olution: I objected to it the other day when it came up during the call of the calendar. I said in substance that it called for an investigation of the Re- construction Finance Corporation, and that money was requested for the pur- pose of investigating. In my opinion, the word “investigate” implies that some- thing is wrong with the RFC. After talking with the Senator from Arkansas, it is now my understanding that he desires to make a thorough study of the activities of the Reconstruction Finance Corporation, with a view, prob- ably, to securing the passage of legisla- tion, later on, which may help the situa- tion one way or another. Mr. FULBRIGHT. Mr. President, will the Senator yield? The VICE PRESIDENT. Does the Senator from Iilinois yield to the Sena- tor from Arkansas? Mr. LUCAS. I yield. Mr. FULBRIGHT. I call the Sena- tor’s attention to the fact that the body of the resolution did not contain that language. The title, which was not writ- ten by the Senator from Arkansas -but by the parliamentary clerks, had left that impression; but that actually was not the language of the resolution itself. Mr. LUCAS. I have no objection to the resolution as amended, but certainly there have been no allegations of fraud, corruption, or chicanery involving the Reconstruction Finance Corporation. All the Senator desires to do is to have a study made of the principal activities of the Reconstruction Finance Corpora- tion, with a view to subsequent legisla- tion. That is the regular course which is followed in the Senate. I, of course, have no objection to that. I was object- ing to the implications attaching to the word “investigate.” Mr. FULBRIGHT. Mr. President, I ask unanimous consent for the present con- sideration of Calendar Order No. 1254, Senate Resolution 219. The VICE PRESIDENT. The Secre- tary will state the resolution. The LecistaTive CLERK. A resolution (S. Res. 219) to investigate the opera- tions of the Reconstruction Finance Cor- poration and its subsidiaries. The VICE PRESIDENT. The Senator from Arkansas asks unanimous consent temporarily to lay aside the pending business, and to proceed to the considera- tion of Senate Resolution 219. Is there objection? Mr. SALTONSTALL. Reserving the right to object, is it the Senator's inten- tion to request adoption of the resolu- tion at the present time?
1630 Mr. FULBRIGHT. Yes. I may say to the Senator the resolution was called on the recent call of the calendar. The only objection was as stated a moment ago by the majority leader. The reso- lution was unanimously reported by the Committee on Rules and Administration. The VICE PRESIDENT. Is there objection? There being no objection, the Senate proceeded to the consideration of the res- olution (S. 219) to investigate the opera- tions of the Reconstruction Finance Cor- poration and its subsidiaries. Mr. FULBRIGHT. Mr. President, I have an amendment which I wish to offer. The VICE PRESIDENT. The Secre- tary will state the amendment. The LEGISLATIVE CLERK. It 1s proposed on page 1, after the article “a”, to strike out “full and complete inquiry into” and insert ‘thorough study of ” The VICE PRESIDENT. Without ob- jection, the amendment is agreed to. Without objection, the resolution, as amended, 1s agreed to. The resolution as agreed to is as follows: Resolved, That the Senate Committee on Banking and Currency, or any duly author- ized subcommittee thereof, is authorized and directed to conduct a thorough study of the operations of the Reconstruction Finance Corporation, and its subsidiaries, with special attention given to the recommendations of the Commission on Organization of the Ex- ecutive Branch of the Government with respect to such Corporation and its sub- eidiaries. Src. 2. The committee shall report its find- ings, together with its recommendations for such legislation as it may deem advisable, to the Senate at the earliest practicable date, put not later than June 1, 1950. Sec. 3. For the purposes of this resolution, the committee, or any duly authorized sub- committee thereof, is authorized to employ upon a temporary basis such technical, cleri- cal, and other assistants as it deems advis- able, and is authorized, with the consent of the head of the department or agency con- cerned, to utilize the services, information, facilities, and personnel of any of the de- partments or agencies of the Government. The expenses of the committee under this resolution, which shall not exceed 850,000, shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee. The VICE PRESIDENT. The title will be amended to correspond to the resolution. COLORADO RIVER DAM AT BRIDGE CANYON The Senate resumed the consideration of the bill (S. 75) authorizing the con- struction, operation, and maintenance of a dam and incidental works in the main stream of the Colorado River at Bridge Canyon, together with certain ap- purtenant dams and canals, and for other purposes. Mr. DOWNEY. Mr. President, yester- day I expressed certain observations on the pending measure, the authorization of the central Arizona project. I desire now to continue my remarks, which I be- lieve will be comparatively brief. First, if Senators will pardon a personal obser~ amended and CONGRESSIONAL RECORD—SENATE vation, Iam not happy in being in aggressive opposition to the central Ari- zona project. I have a devotion to Ari- zona, where I have spent much time, and to its people. I particularly have a deep affection and admiration for the senior Senator from Arizona [Mr. HaybDEn], who, by reason of his position on the Appropriations Committee, has been un- failingly courteous and friendly to the people of California, and in every proper and reasonable way has endeavored to assist our people in their many problems which have come before him. So I find myself in not a very happy situation in opposing a project affecting his State. So far as the junior Senator from Ari- zona [Mr. McFar.anp] is concerned, I entered the Senate at about the same time he did. I have for him admura- tion and affection, and I hope at some time I may be working with the distin- guished junior Senator from Arizona to @ common purpose and common end for the great Southwest. Mr. President, I should like very briefly to state in more compact form a few iso- lated items of my argument, before I continue with the closing portion there- of. Something has been said by way of comparison about Central Valley, Calif., which comprehends the valleys of the Sacramento and the San Joaquin Rivers, in comparison with or in contrast to the central Arizona project. It is true the project in the Central Valley, Calif., is one to relieve lands which presently need supplemental waters, for the reason that the underground water supply is being diminished. In that respect our project in Central Valley, Calif., is very much parallel to the one in central Arizona. Certainly I should be the last one to ob- ject to such a project as the one in cen- tral Arizona, if I conceived it to be a just and proper one for the taxpayers and all the people of the United States. I could take an hour on this one item, probably, but without enlarging it by argument I merely want to make the statement that, so far as the present project in Cali- fornia’s Central Valley is concerned, it will be completed for about $400,000,000 or $500,000,000, say approximately one- half the minimum sum expected to be spent in central Arizona, I believe our California project will provide irrigation for 750,000 acres or three times the acre- age that will be irrigated, or the equiva- lent of it, in central Arizona. So right at the beginning, we have, at half the cost, in the Central Valley, three times the acreage; which makes a differential of 6 to 1. I do not believe the Senators from Arizona would seriously deny that Central Valley lands, on an average, are worth two or three times as much as the lands of central Arizona. The great bulk of the lands in the Central Valley are in orchard and vineyards, which cost $1,000 to $1,500 to produce, and which are selling at that amount in the open market. There is the valuation of those lands, as compared with the valuation of $150, $250, or $300 an acre for, let us say, 90 percent of the central Arizona Jands. They have a small amount of grapefruit and other orchards in cen- FEBRUARY 8 tral Arizona, but it is a comparatively minor amount. In the Central Valley we have vast benefits from flood control, salinity control, and navigation. So while there is a parallelism between the two important projects, Iam safe in say- ing that, all factors involved—valuation, yield, ability to pay, and acreage—the benefits in the Central Valley of Califor- nia are from 7 to 10 times as great as those in central Arizona, with only half the expenditure anticipated. Mr. President, I wish to read only two short paragraphs from a letter, dated February 3, 1950, from Ralph S. Trigg, Administrator of the Production and Marketing Division of the Department of Agriculture: Dear SENATOR Downer: The acreage of cot- ton in Arizona in 1949 was estimated by the Bureau of Agricultural Economics as 374,000 acres. This estimate was as of December 1, 1949. The allotment established for 1950- crop cotton tn Arizona in 1950 is 232,266 acres. So, Mr. President, there will be a nec- essary diminution in that type of cotton approximating 150,000 acres in the Cen- tral Arizona cotton crop. There is additional material in rela- tion to what is called the Egyptian or long-staple cotton, which is not under proration of acreage, but which 1s under the support-price program. It is antici- pated that to a certain extent Arizona may turn to Egyptian cotton for plant- ing. I should like at this point in the Recorp to have inserted the complete let- ter from which I have quoted, so that it may be available to anyone. There being no objection, the letter was ordered to be printed in the Recorp, as follows: UNITED STATES DEPARTMENT OF AGRICULTURE, PRODUCTION AND MARKETING ADMINISTRATION, Washington, D. C., February 3, 1950. Hon. SHERIDAN DOWNEY, United States Senate. Dear SENATOR Downey: Reference is made to our telephone conversation in regard to certain information with respect to cotton. The acreage of cotton in Arizona in 1949 was estimated by the Bureau of Agricultural Economics as 374,000 acres. This estimate ‘was as of December 1, 1949. The allotment established for 1950-crop cotton in Arizona in 1950 is 232,266 acres. We have no estimate of the possible acre- age to be planted in American-Egyptian cot- ton in 1950 in Arizona, New Mexico, and west Texas. However, information being received by the Department indicates that there is & possibility that there may be a substan- tial increase in the acreage of American- Egyptian cotton in all of these States. A representative of the cotton branch attended & meeting in El Paso early in January 1950, This representative was informed that there were an estimated 3,200,000 pounds of Amer- ican-Egyptian seed available for planting. However, it is assumed that about 25 percent of this seed will not meet requirements for exemption under the marketing-quota regu- lations. If this is true, the available seed would plant around 150,000 acres. We have no way to determine a break-down between the three States. The following table shows the acreage of American-Egyptian cotton harvested in Ari-
1950 zona, California, New Mexico, and Texas since 1941; Acrcage harvested United States 136, 130 180, 700 138, 000 14,670 8, 600 We trust this is the information you de- sire, and if we can supply anything further please inform us. Sincerely yours, Ratpx 8. Trac, Administrator. Mr. HAYDEN. Mr. President, will the Senator yield? Mr. DOWNEY. I yield. Mr. HAYDEN. Does the Senator have the figures for the acreages of cotton planted in the Central Valley? Mr. DOWNEY. I regret to say that I do not have them in mind, I believe the reduction there is approximately 300,000 acres, but Iam not sure. If the Senator so desires, I shall procure the exact fieures and place them in the Rzc- orp at this point, by unanimous consent. We have raised more than twice as much cotton in the Central Valley, California, and our cut in acreage consequently is much heavier than that in central Arizona. Mr. DOWNEY subsequently submitted the following memorandum: UNITED STATES SENATE, Washington, D C. MEMORANDUM WITH REFERENCE TO CALIFORNIA COTTON ACREAGE In a report to Senator Downey's Office on February 8, 1950, the Production and Mar- keting Administration of the Department of Agriculture stated that the acreage in cot- ton in the Central Valley of California in 1048 was 806,220 acres. No figures are yet available by counties for the 1949 cotton crop, but the California State total of acre- age in cultivation on July 1, 1949, was 963,000 acres. The allotment to the Central Valley of California for the 1950 crop is 621,646 acres, out of the State total of 642,599 acres. Mr. DOWNEY. Mr. President, it may be of help, as a yardstick, to realize that the central Arizona project will cost sub- stantially more than the TVA project, more than the Panama Canal, and more than the amount which it is estimated will be spent upon the St. Lawrence sea- way, if that seaway is ever built. I do not mean more than all of those proj- ects combined, but substantially more than any one of them. Again I do not desire, in my address, to impose upon the Senate with specific figures, but a care- ful study extending over a few days has convinced me that the expenditures in connection with TVA, which are at this time substantially less than the amount which would be spent for the central Arizona project, will bring benefits to that great southern area from 25 to 50 CONGRESSIONAL RECORD—SENATE times greater than would be the benefits which may reasonably be expected to ac- crue from the central Arizona project. Mr. President, the first cost of this project as estimated by the Bureau of Reclamation is $738,000,000, and we have accepted that figure in our argument as being correct. If we can judge of the fu- ture by the past, we must expect the cost to far outrun that amount, In my experience in the Central Valley, almost every estimate of cost made by the Bu- reau of Reclamation, since Mr. Straus became Commissioner, is being exceeded 25, 50, or 100 percent. I could fill the Recorp full of projects now being initiated as to which, within & very few years after the authorization, the Bureau has increased by heavy sums the amounts stated to the Committee on Interior and Insular Affairs when the authorization was approved. One of the most notable of these is well known to the distinguished Senators from Ari- zona. I refer to the Gila project and to the Welton-Mohawk division. In 1946 the cost was estimated at $325 an acre. When Mr. Straus and his fellow travel- ers appeared before the Appropriations Committee the estimate had increased by approximately 70 percent, to a cost of $530 an acre. The Commissioner stated a figure of $325 an acre before the authorizing committee, and within 2 years, without any explanation, without any apology, without coming back to the authorizing committee, he asked the Appropriations Committee for $530 an acre. So I say, Mr. President, let us not dare to presume that this project will not cost 10 or 25 or 35 percent more than the figures with which we are dealing. Those figures are of such magnitude as to shock any man who has a sense of financial responsibility. In my opinion, if the Bureau is ever given this author- ization and the moncy, the costs will far exceed the amount which is here pre- dicted. Let me say, Mr. President—and again I apologize for a personal word—I have been fighting the waste and extrava- gance of the Bureau of Reclamation and of Mr. Straus and his cohorts for the past 5 or 6 years. I have fought the waste- ful, grandiose, and dishonest schemes of those men in my own State. Isay to the Senate that if Michael Straus were un- checked in the Central Valley he would secure huge sums of money from the Federal Treasury to waste in impossible and fantastic schemes. I can recall one project which Mr. Straus and his as- sociates endeavored to get through our standing committee and through the House—fortunately, unsuccessfully— which would have revealed, on one small project, a waste of $100,000,000. Mr. President, I desire to state that I shall fight these grandiose schemes which are emasculating the Federal Treasury, not only in my own State but in Arizona and in the other States. Mr. President, yesterday I stated that the dedication of a billion and a half kilowatt-hours in connection with the irrigation of this meager acreage of land 1631 to produce surplus crops which will have to be supported by the Treasury was like @ man burning his home down to roast @ pig, because that vast potential power is worth five times as much in the State of Arizona and elsewhere in the genera- tion of employment as would be the water irrigating that scanty acreage near Phoenix. I wish to make a further statement so that we may have a clear understanding of the matter. It is a mere coincidence that the whole State of Arizona, in its municipalities, its manufacturing, its mines, its power, and its pumping, is using approximately the same amount, @ billion and a half kilowatt-hours. It is a mere coincidence that here in Wash- ington, D. C., we are using about the same amount of power. Yes, Mr. Presi- dent, the vast power that runs the street- cars in Washington, provides refrigera- tion and air conditioning, illuminates the homes, serves for cooking and manufac- turing, lights the streets and businesses is the amount of power which is being wasted to help irrigate a meager acreage of ordinary cotton and grain land in central Arizona. Mr. President, I now come to perhaps the most important segment of my state- ment. The junior Senator from Cali- fornia [Mr. KNOWLAND] will, I antici- pate, follow me, and he will reveal cer- tain facts relating to this issue upon which I have not spoken, but, so far as I am concerned, except for a few incli- dental remarks, I shall address myself only to one further issue. Apparently the Bureau of Reclamation and the Senators from Arizona realize, and impliedly admit, that the proposed expenditure of this huge sum of money to irrigate land at a cost of two or three or four thousand dollars an acre can- not at all be justified under any conven- tional or reasonable rules of irrigation and reclamation. I think the junior Senator from Arizona made that crystal clear to the Senate when he reiterated and emphasized that this is a disaster or a@ rescue project. He painted a rather horrifying picture of what would happen to the people of the State of Arizona if Colorado River water were not brought into Arizona at the cost of a billion dollars or so. Mr. President, if the statements made by the distinguished junior Senator from Arizona are correct, and if we assume there is no cheaper and more feasible way of relieving conditions in Arizona than by the expenditure of a billion dol- lars, we might reasonably consider what he has said. But I wish to test his gen- eralizations, his emotions, his dogmatic assertions of opinion concerning what will happen in the State of Arizona if this project is not placed in operation. I state it only as my opinion, of course, that the Senators from Arizona have not adduced one item of proof of the truth of their extraordinary statements. The junior Senator from Arizona was highly eloquent, he was highly emotional, he was certainly dogmatic in stating the ultimate conclusion which he wanted, but, so far as I can recall, Mr. President,
1632 not by one single concrete fact did he corroborate the opinion he expressed. I think the Senator would himself ad- mit, if he were here on the floor, that his emotions had carried him too far. Said the Senator, in effect: “Unless this project is undertaken, 250,000 of our citizens will be brought to complete ruin and misery by the necessity of abandon- ing their State of Arizona and their homes and farms and going forth into the world,” as the Senator said, “in as distressed a condition as the displaced persons in the concentration camps of Europe.” He stated there were 750,000 people in Arizona. Then, with this land idle, and this quarter of a million persons driven into desperation and misery, the other 500,000, he said, would face complete ruin of every kind, the tax structure would fail, businessmen and farmers would be unable to pay their debts, and insolvency and bankruptcy would sweep the State, and complete ruin of the splendid Com- monwealth of Arizona would eventuate. I hope that at some time during my remarks the junior Senator from Ari- zona will attempt to refute some of the facts, set forth by me, or at least, will attempt to show to the Senate the basis of his remarks. Mr. President, what are the facts? As has been repeatedly stated by the junior Senator f.om Arizona himself in his re- marks, and repeatedly stated in the re- port of the Bureau of Reclamation, if the Colorado River water is not brought into Arizona and a local plan developed for additional water, 225,000 acres which would otherwise be irrigated will not be irrigated. The Bureau expresses it this way: Assuming about 676,000 acres which could be irrigated, if the project were completed, approximately 30 percent would not be irrigated, in specific figures, 225,000 acres. Let us now proceed from there. Of this 225,000 acres, 75,000 acres are not now cultivated, nor have they been for the past decade, nor for an in- definite period. It is stated that the 75,000 acres are comprised of various parcels, which change from year to year, but there is the clear statement that the project would irrigate 75,000 acres of land which had not been irrigated for 10 years or more, bringing in that much additional new acreage. Here we have a condition which existed long before the war. That land has not been irrigated. Does the junior Senator from Arizona want to face his fellow Senators and say that the State of Ari- zona has not adjusted its economy to that acreage which is not being irrigated? Phoenix, Ariz., has, during the past decade, had one of the greatest booms in the United States. It has grown rapidly. As I shall show, a remarkable degree of prosperity exists there now and has existed for the past decade. Of course, the fact that the 75,000 acres have not been irrigated was not and could not be used as an argument that any chaos or collapse would result if additional water is not now provided and 75,000 more acres of land are put under irrigation. No rational argument can be made respecting those 75,000 acres, CONGRESSIONAL RECORD—SENATE Mr. President, we come now to the re- maining 150,000 acres. Tha’ land is now in cultivation, according to the statement of the Bureau of Reclamation. The great bulk of it is in cotton and grain. Some of it produces as low as a gross of $30 an acre, compared to the land on which vegetables are grown, which pro- duces $266 an acre on the average. The 150,000 acres of land will still be culti- vated if the project is not put into opera- tion. But, Mr. President, there is another deduction to be made. The project not only embraces the Colorado River, but it embraces local projects in the Gila River and Salt River entirely independ- ent of the Colorado River project. No one objects to those local projects. They would cost about $40,000,000. The water would be rather expensive, but I think such projects would be well justified, and so far as I know everyone would acquiesce in them. Those projects would irrigate 30,000 acres of land. So we come then to the net figure of 120,000 acres of land presently culti- vated which, according to the Bureau, will have to go out of operation if the Colorado River water is not brought in. Mr. President, I emphasize the point that this land is of a very great variety, so far as quality is concerned. Some of the land has hardpan close to the sur- face Some is alkaline, or for other rea- sons it is not good soil. Certainly any- one can assume that if 120,000 acres of land are to be taken out of cultivation in central Arizona, by leadership of the State, or the Bureau of Reclamation, or the farmers themselves by cooperative action, the land thus taken out will be the poor land, of course, and ultimately over the course of a few years, if there is not enough water there, the poorer land which only produces a small amount of revenue, will be that which will go out of existence. Mr. President, the 120,000 acres, the total amount that will go out of irriga- tion if the Colorado River water is not brought in, constitutes about 20 percent, almost exactly, of the present acreage. But if the poorer 150,000 acres of land go out, it will be land of poor yield and low quality. I say, Mr. President, that any agricultural expert who is given the opportunity to testify here will say that on the very facts presented by the Bureau of Reclamation, if the Colorado River water is not made use of, the farm production of that area may be presumed to be reduced by about 10 percent. Mr. KNOWLAND. Mr. President, will my colleague yield? Mr. DOWNEY. I yield. Mr. KNOWLAND. I wonder if my col- league is willing to yield to me for the purpose of suggesting the absence of a quorum, if he does not lose his rights to the floor by doing so. Mr. DOWNEY. Yes; I will yield for that purpose, if the Senator desires, and if I do not lose the floor thereby. The PRESIDING OFFICER (Mr. Hunt in the chair). Is there objection? The Chair hears none, and it is so ordered. Mr. KNOWLAND. I suggest the ab- sence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. FEBRUARY 8 The legislative clerk proceeded to call the roll. Mr. KNOWLAND. Mr. President, I ask unanimous consent that the order for a quorum call be rescinded and that further proceedings under the call be suspended. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. DOWNEY. M1. President, I am very, very grateful for the large audicnce to which I am now addressing my re- marks. [Laughter.] Mr. WILEY. Mr. President, the Sena- tor means the very select audience he has. Mr. DOWNEY. I am reminded that at times the Senate floor would have been a magnificent place for Hamlet to have delivered his soliloquy. He would have been remote and alone, and he would have had proper reporting to pre- serve it for history. [Laughter.1 Mr. President, I have reached the point in my journey along the long road to central Arizona where it would seem ap- parent that, if the Colorado River water is not brought to that valley, at a cost of a billion dollars or so, more or less— and we shal] not quarrel over a quarter of a billion dollars or half a billion dol- lars, more or less, because all of us here are good friends—the actual diminution in the productivity of the land now in crop, although it would amount to ap- proximately 20 percent in acreage, would amount to approximately 10 percent in value. That statement is based upon the assumption that the farmers and citizens of Arizona, being of very high intellectual caliber, would, of course, let the poor-quality land, which brings in the meager returns, go out of produc- tion. However, Mr. President, there are two other factors of very great importance in connection with our consideration of this matter. There are four main conduits which bring income into the Phoenix area. Mr. President, in order that you may be rapidly briefed upon the point I am now attempting to make, I may say that, according to the California figures, although the failure to bring the Colo- rado River water to the Central Valley of Arizona would reduce the cultivated acreage in central Arizona by approxi- mately 20 percent—and I speak now ac- cording to the figures of the Bureau of Reclamation—yet we can assume that the citizens of Arizona, being highly in- telligent, would take out of cultivation their poor-quality, low-income, low- yield land. So, upon any basis, it vould not seem that the productivity of that area, in total terms of gross rcturn from the crops, would be diminished more than 10 percent. But, Mr. President, there are other factors to consider in this matter, as I was about to say. There are four main sources of income or purchasing power for Gila and Maricopa Counties. One is the tourist business, which now—al- though the figures are not wholly cer- tain—probably brings more money to the Phoenix area than do all the crops from the entire 600,000 or 700,000 acres. Mining brings in a rather minor amount, approximately $8,090,000 or $9,000,000 a year.
1950 Manufacturing, by means of the value added by the manufacturing processes, brings in about the same amount as the crops do. The Bureau of Reclamation assumes that, with this project in operation, the average annual production of crops in the area would amount to approximately $65,000,000 a year. The other three items I have mentioned—the tourist business, the value added by manufac- turing, and mining—bring in approxi- mately $100,000,000 a year. So when we estimate the effect upon Arizona’s economy of the reduction of 10 percent in the production of her crops, we should remember that that particular item of income to Phoenix is only a minor one, and probably the actual reduction of wealth because of the failure to have this water would not be more than 2 or 3 percent of the very great amounts of income flowing in from the tourist busi- ness, manufacturing, mining, and the cultivation of the five hundred thousand or six hundred thousand acres of land for which there is ample water. So, Mr. President, I am at a loss to understand how the Senator from Ari- zona can declare, with emphasis and high emotion, that the failure to bring water from the Colorado River into that area will mean the complete ruination of the State. Phoenix is, and will remain, one of the great winter resorts of North Amer- ica. I have been there many times. It is very much like Palm Springs. Palm Springs and all the other Southwest area resorts are growing rapidly with- out any agriculture. There are no farms in the proximity of Palm Springs; yet it has had an immense growth in tourist business. Tucson, 90 miles from Phoe- nix, over the last decade has shown a tremendous growth, due almost wholly to the tourist business. There is very little farminz—only a few thousand acres—in Pima County. So, Mr. President, I think the distin- guished junior Senator from Arizona is too much alarmed. I think the tourist business will continue to flow in, so long as we remain a prosperous Nation. In my opinion, the tourist business will bring ever-increasing amounts of income to that area. It is also, I think, on the threshold of increased mining, and I be- lieve the industries there will continue to increase. So all this high emotion and high- pressure talk about the ruination of a great State if it does not get into cultiva- tion a comparatively meager amount of poor land, principally in grain and cot- ton production, does not make sense to me. Mr. President, yesterday I said, and I now repeat, that the talk about the ruin and collapse of the Arizona and the Phoenix economy leaves me cold. All over the United States hundreds of com- munities have had difficult experiences because of the exhaustion of their tim- ber, dust storms, the playing out of mines, the overuse of their water, and the shutting down of manufacturing establishments. The distinguished Senator now presid- ing over the Senate [Mr, Macnuson in the chair] knows what keen, critical CONGRESSIONAL RECORD—SENATE problems confront the Pacific coast at this time, as a result of the diminution of the pay rolls of the United States Gov- ernment, which were paid to the people there during the war. The Senator is fortunate that the Bremerton yards are still operating at almost full capacity, I hope they will continue to do so, for the sake of the Pacific coast and particularly for the Senator’s State. Long Beach, Calif., is almost complete- ly shut down. The discharge of 10,000 men and an indirect loss probably of another 10,000 will leave Long Beach with a critical unemployment situation, with a relief load, with housing problems, and with the anguish of the unemployed, which will constitute a serious problem. When one goes to Phoenix, Ariz., he there sees one of the most beautiful, cleanest, and finest cities in the United States, a city enjoying high prosperity. Almost anywhere in the Southwest it will be found that its wonderful climate is attracting in ever-increasing numbers settlers, who draw incomes from the East, and tourists, who come to spend their money. The plea by the junior Senator from Arizona that the taxpayers and power users should burden themselves to the extent of $2,000, $3,000, or $4,000 an acre, on the claim that the project is in the nature of @ rescue or disaster project, is without foundation. As I said before, Mr. President, I shall be delighted to be interrupted if any Sen- ator thinks I am making a misstatement of fact or distorting any conclusion throughout my argument. Mr. McFARLAND. Mr. President, will the Senator yield? The PRESIDING OFFICER (Mr. Mac- NuSON in the chair). Does the Senator from California yield to the Senator from Arizona? Mr. DOWNEY. Very happily. Mr. McFARLAND. I merely wanted the Senator to know that I should be happy to interrupt him, but I believe the only Senators on the floor, other than the Presiding Officer, are the two Sen- ators from California. I doubt whether I could convince them. I should be happy to interrupt the Senator to reiterate my plea, if I thought it would do any good. As it is, I believe I shall merely let the Senator proceed, and then answer in my own time. Mr. DOWNEY. I thank the junior Senator from Arizona for his clever and gracious reply. I certainly can under- stand that he would be reluctant to de- fend this proposition even to empty benches. I only wish there were a large group of Senators present to hear both of us and to judge of the merits of the question. But, of course, a record is being written. I do not believe the American people will ever allow to be undertaken proj- ects involving such an amount of money per acre. I assert it would be an un- happy and disastrous thing for western reclamation. There are, largely in the Columbia Basin and the Missouri River Valley projects, under which land can be reclaimed at a cost of $150, $250, or $500 an acre, within certain reasonable limits. Does any Senator from the West think it would help his own cause or the cause of western reclamation to 1633 throw open the door to a project of this kind? I say that ultimately, when the facts are known, and the Senate of the United States realizes that it is solemnly considering paying $1,000, $2,000, or $3,000 an acre in order to save grain Jand and cotton land, thereby creating a greater burden upon the Treasury in support prices, the cause of western rec- lamation is not going to be helped. I further say I think it regrettable that in the Colorado River Basin we do not have left other feasible projects; but we do not. Most of those from now on are going to cost from $1,000 to $3,000 or $4,000 an acre. A majority of the members of the committee are from the Colorado River Basin. Mr. President, why do you think they are favoring this $1,000,000,000 au- thorization? It is because they have similar projects within their own States. Those projects will be put forth, upon what claim? It will be said, ‘The dis- tinguished Senators from Arizona were given a project of this kind, and there- fore we are entitled to them.” It is said collapse and ruination of the economy of Arizona would result from the withholding of the $1,000,000,- 060. As I view the situation, knowing the Bureau of Reclamation and the meager gross amount of money which will be available for division among the 17 States of the West, I say Arizona will be lucky if she gets enough money within 20 years to complete the project. I showed to the Senate yesterday that, assuming a 20-year period, the interest paid upon the investment in that time by the taxpayers of the United States would amount to $650 an acre for the Arizona lands. I think I am safe in saying it will take 20 years to complete the project. If the distinguished junior Senator from Ari- zona wishes to say, “We are going to build it in 10 years,” then let every other Western State tremble when it considers where it is to continue to get irrigation money, if Arizona is to build the project with appropriations extending over a period of but 10 years. I do not believe it can be done. I ask you, Mr. President, and I would ask my colleague, the junior Senator from Arizona, except that he has vanished, if this terrible disaster is to occur, in the event the authorization is not made, is it not going to come within 2 or 3 or 4 or 5 years? The junior Senator from Arizona says it is beginning now. The entire State will be ruined and abandoned before the project is completed, according to the Senator from Arizona. If 250,000 miser- able citizens are to be thrown into poverty and misery, and driven from Arizona into a worse condition than that of displaced persons, what are they to do for the next 20 years? The Senator is silent and makes no answer. Mr. President, long before the project can be built the problem will have been solved, either by some kind of cooperative ar- rangement among the farmers, by local improvement, or in some other way. I have, therefore, argued the question of its being a disaster or rescue proposi- tion, as contended by the Senator, upon the assumption there would be possibly
1634 120,000 acres of poorer land which would go out of cultivation. We have reports, scientific and honest reports, which were presented to the committee, indi- cating that the Department of Agricul- ture, the Geological Survey, and the Federal Power Commission believe that by the inauguration of proper economies within central Arizona, by restricting water to the amount strategically to be used on the land only, by lining the canals, and by the variation of crops, central Arizona probably could solve its own problem. Mr. President, I tried to get the com- mittee to consider a dignified, scientific, persuasive statement by representatives of the United States Geological Survey who have been studying water conditions for years. Those representatives stated it would take 3 years to make a complete evaluation. ‘They said there was in- volved a difficult salinity condition, and pointed out various methods by which they believed there was a possibility that the water could be so controlled and so handled as to solve the problem in cen- tral Arizona. By the use of one method which they suggested and which noted experts favored, they believed that by the destruction of desert vegetation alone, along the canals and along the river, from 300,000 to 400,000 acre-feet of water could be saved which is now used up in supporting that desert growth. But the committee had not the slightest interest in calling for further investiga- tion or reports by any of the other gov- ernmental agencies—all of which, in effect, denounced this project. The Senate of the United States and the committee by dealing carelessly and casually with this kind of an expenditure of the taxpayers’ money are not going to raise the stature of the Senate of the United States. I say to the distinguished Senator from Arizona that if we validate the proposition of paying 10 or 20 or 30 times as much for irrigating land as the land is commercially worth that action will come back to plague the Senate. If we start embarking upon this kind of project, when the matter comes up in some other form through some other Senators who are not perhaps so popular and effective as are the proponents of the pending measure, the result will be disastrous to the reclamation program. I say the same thing regarding the Central Valley. I know that if the waste and extravagance of the Bureau of Rec- lamation there are not exposed and the truth brought out western reclamation will not be helped at all. It is a com- plex and a far-flung problem with many, many facets. If it involved a trial be- fore a learned judge and a jury, the con- sideration of all the great issues in it would probably take 2 or 3 years. Mr. KNOWLAND. Mr. President, will the Senator yield? Mr. DOWNEY. I gladly yield to the junior Senator from California. Mr. KNOWLAND. Mr. President, I think my able colleague from California has made a very important point which needs to be emphasized and reempha- sized and to be called to the attention CONGRESSIONAL RECORD—SENATE of Senators not only from the reclama- tion States, but all the other Members of this body. For a long time we have had a sound system of reclamation laws whereby certain yardsticks were estab- lished by which projects might be meas- ured as to their feasibility. In that way the Federal Treasury was protected against unsound projects. From a prac- tical point of view, the Federal Gov- ernment had agreed that it would ad- vance money, without interest, for a period of 40 years, with a 10-year period of grace, which makes a total of 50 years, in order that irrigation projects could be constructed. They had to come within that yardstick, at least, and there were standards by which to measure the projects. It has been pointed out by the junior Senator from Arizona that there have been some exceptions. In some cases the time has been extended to 55 years or perhaps to 60 years. I am not aware of any projects going beyond that pe- riod of time. But if the proponents of this or other measures had come frankly before the Conzress and said, “In our judgment, the project cannot be built under the existing 50-year limitation and we believe there is equity in extending the time 5 years or 10 years,” the Senate and the country would then have had some standard by which to measure various other projects. But, as the senior Senator from California has so ably pointed out, when a project reported by the Interior and Insular Affairs Com- mittee throws away the yardstick, once that is done in connection with the cen- tral Arizona project, I do not believe we can reestablish the yardstick, because, with equal validity, other proponents can say, ‘You have thrown away the yard- stick in the central Arizona project: you have given them 70 or 80 or 100 years, and we want to be treated in the same way.” Moreover, it will open up the Treasury to the greatest raid it has ever known. If we establish this prece- dent of throwing away the measuring yardstick, I do not see how, with equity, we can say, as to projects which have already been built or which are now being built, that they will be held to a 40-year period and be treated differently from the way we are asked to treat the central Arizona project. Mr. President, I know it is difficult, and perhaps dangerous, to look into the crys- tal ball, but I predict that if this bill re- ceives the approval of the Senate of the United States, and we throw away the yardstick for this vast project, there will be many projects now in construction in connection with which Senators, with considerable equity, can say, “We no longer want to be held down to the 50- year yardstick. We want the yardstick thrown away and have it left to the dis- cretion of the Secretary of the Interior.” Mr. DOWNEY. Mr. President, I wholly agree with that statement. If we are going to inaugurate projects which will require 100 to 150 years to pay out, un- doubtedly any project which is in diffi- culty will be petitioning, and probably effectively, for redress. FEBRUARY 8 I am reminded of one item which I should like briefly to review. The dis- tinguished junior Senator from Arizona expressed some concern about the atti- tude of California, mentioning the fact that the metropolitan water district, in taking water into Los Angeles from the Colorado River, actually pumped the water a total height of 1,600 feet. He made the point that we were saying it would not be feasible to pump this great body of water 1,000 feet into the air while we ourselves had pumped water and were pumping it 1,600 feet. Mr. Presi- dent, the Metropolitan water district was built by the taxpayers of the region which it serves. They did not borrow the money from the Government. They have spent two or three hundred million dollars of their own on that project, and they are transporting not irrigation water but water for industry and residence use, which is worth 10 or 20 times as much as is water for irrigation. If a man pays $75 a month rent for his home, whether he pays 75 cents a month or $° for water does not make very much difference. But if a man has to pay $20 or $30 an acre- foot for water 1n order to farm, he can- not stand it. To compare a high-class use of water for domestic and industrial purposes, and use of water for irrigation, is to be totally irrational and on an im- proper basis. The junior Senator from Arizona was unhappy over what we had had in Cali- fornia. Let us compare. Central Ari- zona is asking for 1,200,000 acre-feet of water, almost exactly the amount the metropolitan water district has. They are not going to pay the interest or the capitalization or any part of the facil- ities, costing hundreds of millions of dol- lars necessary to get the water to central Arizona. All they are going to pay is a portion of the operation and mainte- nance costs. In the metropolitan water district, as I have said, the Government had noth- ing to do with the building of the facil- ities. The district assumed all the cost. It built the transmission lines down to the pumping dam. More than that, Mr. President, the metropolitan water district pays the full commercial value for that pumping, or approximately 4% mills. In this case, for water to be used for cotton and grain land, this tremendous block of power is to be furnished for practically nothing, about one-fourth or perhaps one-tenth of what it can be produced for in the Bonneville area, substantially less than a mill a kilowatt hour. Mr. President, it is easy to make such an improper and misleading comparison as has been made between the proposed project and the metropolitan water dis- trict. The metropolitan water district is a project to provide manufacturing, utility, and residential water, paid for wholly by the taxpayers and the resi- dents. It cannot be compared at all with a project to pump and transfer irri- gation water, so huge in its cost that it is almost impossible to take in the pic- ture.
1950 Mr. President, I regret I have had to impose upon the empty seats in the Sen- ate as long as I have. I am reminded of a story which Herndon, the law part- ner of Abraham Lincoln, tells in his biography of Lincoln. Before telling the story, I wish to say that I am only quot- ing Abraham Lincoln. I certainly am not comparing myself with the Great Emancipator. At one time it was argued for hours on the floor of the Senate whether the word “hell” was a profane or blasphe- mous word. It was finally decided that it was not, and it was held proper to use it in a quotation. So, with that pre- liminary observation, I wish to say that at one time when Abraham Lin- coln, the man who will be so highly ex- tolled by Republicans next week, was running for Congress, was going around his district, he went into a meeting and waited until about 9 o'clock. The only persons who were present were his part- ner, Herndon, who was presiding, and one dismal-looking soul in the audi- ence. Abraham Lincoln turned to Hern- don and said, “Herndon, I know why you are here.” Then he turned to the other man and said, “Why the hell are you here?” Mr. President, I know why the Presid- ing Officer is here, I know why the Sen- ators from California and Arizona are here, but I do not know why the junior Senator from Pennsylvania [Mr. Mar- Tin] is here. I suppose my story applies to him. [Laughter.] Fortunately, we will have an oppor- tunity to renew this argument sometime next week, and we hope that at that time western reclamation Senators will be present to learn something about the facts of life. They should be educated about the central Arizona project, al- though they are all very busily engaged with their own affairs. I have no criti- cism of any Senator who is not in the Chamber. Every one of us is working on matters of importance to his State and Nation. We occupy all our time far beyond our capacity, and if someone were here arguing the St. Lawrence seaway, or some other great national problem, I might not be here. I probably would be doing what the other Senators are doing, absenting myself because of necessary affairs. I hope that when we come to vote on the amendments, and upon a motion to recommit the bill to the committee, a sufficient number of Senators will be in attendance, and that they will realize the profound implications involved in this proposal, and the career of extrav- agance and prodigality which may be initiated by the enactment of the ex- traordinary bill now pending. INVESTIGATION OF SPIES IN THE UNITED STATES Mr. McCARTHY. Mr. President, I have before me a very brief article which I should like to read into the Recorp. It is from the Chicago Herald-American, and the headline is: “High court judge front for Red spy.” This is an article by Mr. Victor Riesel, noted labor authority, The subhead is: CONGRESSIONAL RECORD—SENATE “Agent recommended by fustice for union’s legal post.” The article reads: Hick Courrt Jupce Front ror Rep SpyY— AGENT RECOMMENDED BY JUSTICE FOR UNion’s LecaL Post (By Victor Riese!) New Yorx, February 4.—Arrest of that British scientist as an atomic spy only scratches the tip of the international espio- nage ring. When the ring is finally uncovered, it will be revealed that Russia’s American spies got s0 high up in their contacts with United States officials that their ringleader and braintruster used a Supreme Court Justice as @ front. JUDGE RECOMMENDS HIM And I don’t mean Justice Frankfurter here. The judge I refer to actually made possible the spy's operation by innocently recom- mending the foreign agent for the post of national attorney to one of America’s most important unions, headed by a world-re- nowned labor chief. This spy's specialty was naval secrets--and there's an ex-bank president around who can prove all this, if it needs proving. WHY IS SPY LOOSE? Why doesn't the Government haul the agent in? He's around loose. And our secu- rity forces know all—but all—about him. How long do we wait? Or why don’t we just deliver the hydrogen bomb secrets by uniformed messenger? Mr. President, this article was called to my attention by one of the outstand- ing newspaper men of the Middle West, Mr. Charles Finston. He suggested that I take the matter up with the chairman of the special Senate investigating com- mittee, and invite Mr. Riesel to come and give us further facts on this issue. I took the matter up with the Senator from North Carolina {[Mr. Hory], the chair- man of the special investigating commit- tee, and we agreed that our committee would have no jurisdiction of this par- ticular subject, and no jurisdiction to in- vestigate the facts. I am putting this article into the Rrec- orp to call it to the attention of the proper committee, and suggest that Victor Riese], who I understand is a fine newspaper man, be asked to come before the committee and give what informa- tion he has. Iam not suggesting that he be subpenaed to come and testify. I think it is a dangerous thing to subpena & newspaper man who has written a story and force him to testify. I am inclined to think however that Mr. Riese! would be glad to give the information to the proper committee. I might say that I think it has been proved in past years that a sizable num- ber of newspaper men have rendered very valuable service in the way of tips and information which they have given to Senate committees. I thank the gentleman from Chicago, Mr. Finston, for calling this matter to my attention. I am sorry our committee does not have jurisdiction to investigate it, but I hope the proper committee will look into the matter. CALL OF THE ROLL Mr. KNOWLAND. Mr. President, I suggest the absence of a quorum. 1635 The PRESIDING OFFICER. The clerk will call the roll. The Chief Clerk proceeded to call the roll. Mr. KNOWLAND. Mr. President, I ask unanimous consent that the order for the call of the roll be rescinded and that further proceedings under the call be suspended. The PRESIDING OFFICER (Mr. Dovue.as in the chair). Without objec- tion, it is so ordered. THE FORMOSA SITUATION Mr. KNOWLAND obtained the floor. Mr. SMITH of New Jersey. Mr. Presi- dent, will the Senator yield to me? Mr. KNOWLAND. I yield to the Sen- ator from New Jersey. Mr. SMITH of New Jersey. Mr. Pres- ident, yesterday in this Chamber there took place an important exchange on the subject of American policy in the Far East, particularly with respect to the Formosa situation. I note in the Recorp that my esteemed friend, the junior Sen- ator from New York [Mr. Lenuman], in stating his position against American ac- tion in Formosa, cited mt as one who had advocated American military occupation or seizure of that strategic island. T regret, Mr. President, that because of my attendance at a meeting of the Foreigu Relations Committee I was not able to be on the floor at the time, and Iam indebted to my loyal colleague from New Jersey [Mr. HENDRICKSON]! for bring- ing once aZzain to the attention of the Senate an earlier statement of mine in which I sought to make my position en- tirely clear. I should like to pay a tribute to a Sen- ator who will stand up on the floor and defend his colleague when his colleague is absent. It is a splendid example of cooperation between two Senators com- ing from the same State. In my judgment, these discussions we have had in the Senate have been of great value in airing the tremendous is- sues of our far-eastern position, which as all Senators know is very perilous. I hope the real issues will not be clouded by too much debate over the meaning of words. It is true that in the course of developing my thoughts in past months I have used the word “occupation” with respect to Formosa. But I have never been an advocate and am not now an ad- vocate, of forcible occupation or of send- ing any American soldiers to Formosa. What I am still vitally interested in is a peaceful and constructive American pol- icy throughout the Far East and par- ticularly in Formosa, which is still the vital center of Chinese resistance to the alien tide of communism. It is my con- viction that the aspirations of all far- eastern peoples for national independ- ence, personal freedom, and economic development cry out for an affirmative American answer. As I have repeatedly said, in my view we can begin to give that answer in For- mosa. The prophets of doom who pre- dicted the early collapse of the remain- ing Nationalist forces on that island
1636 through internal corruption and incom- petence have been proved wrong by the recent course of events. In this connection I should like to call the Senate’s attention to three recent articles in the New York Times by the Times far-eastern correspondent, Bur- ton Crane, whom I know well and who is an extremely able observer. These dis- patches from Formosa, dated January 30, February 2, and February 3, are @ part of a flood of testimony concerning the great spirit of confidence which is rising under the new K. C. Wu regime there. They show military competence; they show strong measures of economic and political reform; and they show the hearty support of the native Taiwan people for the policy of resisting commu- nism and building democracy. I emphasize here that the native Tai- wan people, of whom there are nearly 7,000,000, or one-third more than the population of the State of New Jersey, have nothing to do with this trouble. They were formerly a part of Japan; but there they are, the victims—if this island is taken over by the Communists. Let me cite in particular one sen- tence from Mr. Crane’s dispatch of Jan- uary 30, which to my mind is very sig- nificant. He says: Every authority with whom this corre- spondent has spoken agrees that Nationalist China's main problem is not military but economic. I stress that because, as I have repeat- edly said, I feel that our past policy in China has been tragically hampered by an overemphasis on military might and an utter failure to concentrate on the economic and ideological factors which are the heart and soul of the present cold war. . I submit to the Senate that the people of Formosa are ready and willing to help themselves and to advance the cause of freedom in the world. They have a strong Nationalist contingent to main- tain that position. To my mind, they need and deserve American aid and sup- port, and I earnestly hope that Congress will give it to them without delay. In this connection I invite attention to the bill which the Senator from Cali- forma [Mr. Knowtanp] and I intro- duced a short time ago, which was unani- mously approved by the Foreign Rela- tions Committee and is now on the cal- endar. It is Senate bill 2845, a bill to enable the President to obligate funds heretofore appropriated for assistance in certain arcas in China until June 30, 1950. The bill extends the time from February 15 to Jun: 30. We simply want that question to be left open. I can see no objection to the bill, and I hope that it may be passed immediately, so that it may go to the House for prompt action in order to take care of the crisis in Korea and the crisis in Formosa with ECA aid. Mr. President, I ask unanimous con- sent that the three articles by Burton Crane from Formosa which I mentioned a moment ago be printed at this point in the REcorp as a part of my remarks. CONGRESSIONAL RECORD—SENATE There being no objection, the articles were ordered to be printed in the REcorp, as follows: [From the New York Times of January 31, 1950] ForMOSA PROBLEM SEEN AS ECONOMIC—UNITED States $3,500,000 Bip MoNTHLY HELD NEEDED To Save ISLAND BASTION FROM COLLAPSE— Army BELievep Too LaRGE—AMERICANS FEEL CHIANG REGIME SHOULD CONCENTRATE ON DEFENSE, Not BLOCKADE (By Burton Crane) TarrPeH, Formosa, January 30.—About 83,- 500,000 of nonmilitary United States aid monthly would save this island from eco- nomic collapse and prevent Communist in- roads, according to Loris Craig, Economic Cooperation Administrator for Formosa. This figure is considerably smaller than those suggested by Chinese officials. It is based on the assumption that the present determined efforts by the Chinese to help themselves will continue Mr. Craig believes Nationalist China can ge’. by on about $10,000,000 monthly. For some time, perhaps a8 long as 7 months, the Formosa regime could use the gold reserve now held by Generalissimo Chiang Kal-shek at the rate of $4,500,000 monthly This would provide time to prepare for the ap- proaching financial crisis and adjust military expenditures to cut the monthly outgo. With United States aid of $3,500,000 monthly the Chinese would have to provide another §$2,- 000,000 by their own efforts. Mr. Craig be- lieves they can do so. CHINESE FIGURES DIFFER Chinese estimates range between $5,000,- 000 and $6,000,000 United States aid. One official asserts that $3,500,000 in commodity aid and $1,500,000 to $2,000,000 in industrial rehabilitation aid would see the nationalist government through Its current troubles. All speak somewhat wistfully of the 875,- 000,000 of military aid appropriated and then frozen and the $90,000,000 to $105,000,000 of nonmilitary aid that suffered the same fate. In the past 13 months ECA aid to China aggregated $13,000,000 and only about $1,- 500,000 worth 1s on order for shipment before February 15 when all aid will end unless the United States Congress acts. Every authority with whom this corre- spondent has spoken agrees that Nationalist China’s main problem is not military but economic, Americans and Chinese alike feel that the people, despite carly mistakes, now are pretty solidly behind the regime and will continue so unless economic difficulties be- come so great as to cause general discontent. Everybody is certain, since there is vir- tually no danger of disaffection within the Jsland, that any attack by the Chinese com- munists alone can be successfully beaten off, although they admit loans of Russian ships and planes to the enemy would change this appraisal. But the economic factor 1s troublesome. Inflation here its perfectly natural. The national government is trying to make a population of 7,230,000 support 600,000 troops. One-third of these are here, the bal- ance are defending the Chushan Islands, Hainan Island and other remnants of Na- tionalist territory. Among Americans here the view generally is held that this force is entirely too large. They quote Gen. Sun Li-jen, deputy com- mander, as saying that 300,000 troops are enough to defend Formosa. They call for reductions in the Air Force, which has 100,000 men, including 5,000 pilots, and only 300 planes. They feel the same way about the Navy, with 45,000 on the pay rolls and no ship larger than a destroyer. FEBRUARY 8 It should be noted, however, that there ts @ definite clash in ideas over what national- ist China's future course should be. The bulk of the Americans feel the Chinese should concentrate on island defense and stop expending money and men on blockad- ing the mainland coast. They doubt whether an invasion now could succeed but believe time and inevitable Communist mistakes will soften up the opposition. Chinese leaders argue, however, that if they can continue to disrupt Communist economy with air raids and the blockade they can aggravate mainland discontent with the Communist regime and hasten the day when they can make a successful return. More- over, an early invasion would permit the Nationalists to make effective use of some 140 bands of loyal guerrillas they have left in areas nominally Communist. NEW ESTIMATE OF AID Experts such as Mr. Craig feel that the island's economy with nominal aid could be made to support an army of 300,000. If the army reductions are not made, therefore, a new estimate of needs must be made when Generalissimo Chiang’s gold reserve—which, incidentally, he has not yet agreed to use— is exhausted. Meanwhile, inflation has taken a strong hold. Between June, when the currency was reformed, and the end of December retail prices here rose 90 percent. Over the same period the Bank of Formosa note issue jumped from 13,000,000 to 194,000,000 For- mosa dollars Although the currency is backed by 800,000 ounces of gold with an official value of 280 Formosa dollars an ounce, the official currency issue limit 1s 200,000,000 Formosa dollars. When Michigan-educated K C. Wu be- came governor on December 21, 1949, he started a campaign that played hob with an- cient Chinese traditions. It has been customary for Chinese gen- erals to take the pay rolls for their men in lump sums. The number of names on the register generally was considerably above the number of men in the ranks. This was petty graft, however, compared with the generals’ perquisites in inflation times. It became common practice for a general to take the entire pay roll to a private bank which would hoard commodities, forcing up prices. The general would delay pay day until the goods could be sold at a profit. Governor Wu and Jen Hstfen-chuen, his fi- nance commissioner, first forced through pay at the regimental level, then ordered all gov- ernment funds deposited with the Central Bank. The second move cut the note issue $23,000,000 (Formosa) immediately. LIBERTY LOAN HITS LUXURIES Next came a liberty loan, intended to raise 19,000,000 Formosa dollars monthly for 3 months. This forced the loan upon luxu- ries. The man who buys a motor Car, for example, must buy a $2,500 bond. Tax increases, mostly upon luxuries such as house lighting and feasts and increased monopoly profits on wines, beers, cigarettes, and salt have been announced. These are intended to balance both provincial and mil- itary budgets and remove the necessity for printing more money. Few experts believe the actual yields will approach estimates. There is evidence the Government will find itself with a shortage of 50,000 tons before the next rice crop comes in. Black market prices are double the official. Governor Wu and Mr. Jen are making determined efforts to end hoarding and fight speculation in order to drive supplies onto the market. However, there are indications the Government will be obliged virtually to adopt the black market price for rice before June and then try to readjust the economy to At.
1950 [From the New York Times of February 8, 1960] Formosa SMASHES BLACK MARKET IN RICE AND UNITED STATES DOLLAR SPECULATION—PRICE OF Foop STAPLE Brovucnt Down In 2 Days sy ARMY Pay-Rott REFORMS AND OUTLAW- ING oF Trust ACcouUNTs (By Burton Crane) TAIPEH, FORMOSA, February 2.—Members of the young and vigorous provincial govern- ment that has been battling not only infla- tion but the politically powerful elements that benefit from it today are chalking up their first major victory. They have smashed the black-market rice price. In 2 days it has fallen from $70 (For- mosa) & picul (13814, pounds) to $65 (For- mosa). They have cracked the black market in United States dollars, which has dropped from 995 to 8.80 Formosa dollars to the United States dollar in a week Those primarily responsible are Gov. K. OC. Wu and his finance commissioner, Jen Hsien-chuen, who stand in the forefront of the group of United States-trained execu- tives who have swum to the top of the Na- tionalist China’s governmental fiood in these critical days. They have slashed red tape (simple approval of routine papers that used to take 131 days now consumes 48 hours) and have made relentless war upon many an old Chinese custom that lowered efficiency or promoted corruption. Around the heads of these men storms have been raging ever since Governor Wu took office December 21, 1949. Every pressure has been exerted to force them to call off their campaign. They have not budged. National Government officials who could re- move them have backed them up, perhaps from the realization that reform had to come now or there would not be any Nationalist China to reform. Messrs. Wu and Jen attacked the high rice price by making speculation and hoarding more difficult. They stopped speculation with army pay rolls by paying thrice monthly at regimental levels and forcing all Govern-~ ment funds into the Formosa Bank. They outlawed trust accounts that had been lending black marketcers funds at rates as high as 18 percent monthly for specula- tion. Such rates dependent upon the rapid continued advance of black-market prices. Abolition of the trust accounts, therefore forced the speculators to liquidate their hold- ings, threw rice onto the market, and started the price decline. Police raids over the week end resulted in the arrest of 17 operators in the dollar black market who were arraigned quickly. Four were sentenced to 3 months in the vagrants camp when they waived formal trials; others were admitted to ball. Since then the mar- ket has been virtually nonexistent, with dol- ler traders well under cover and a further slip in the quotation considered likely. The general offensive against smuggling has long been overdue. A large proportion of this island’s private foreign-currency hold- ing has been frittered away on luxury goods brought in from Hong Kong and Japan with- out paying duty. A stroll along the main shopping streets shows how general this has been. Shops display almost every American toothpaste brand, candy, and cosmetics from Hollywood, expensive American radios, British telephone instruments, all American chewing gum and cigarette brands. Also on display are British suitings at prices ranging from 87 to $14 (United States) a yard, American fountain pens and special inks for them, foreign pencils, American typewriters, English knitgoods, American phonographs and cameras and virtually a complete range of American groceries from coffee to canned soups. CONGRESSIONAL RECORD—SENATE The first move against smuggling was made in December when the Army and Navy pay was virtually doubled so servicemen would not have to smuggle in order to live. Officials have made a special appeal to mill- tary personnel to support the economy by atopping such activities. The second move was quainy and typically Chinese. Shopkeepers were told that what smuggling had been done in the past would be overlooked but that after the Chinese New Year, February 16, no more smuggled goods must be sold. After that date they must report their unsold stocks of duty-free goods and notify their trade associations whenever anyone offers them contraband. The strangest part about this appeal is that it probably will work since most shopkeepers are native Formosans who became accus- tomed to obeying laws when under Japanese control. Incidentally, food and cigarette stalls are exempted from the antismuggling order “‘be- cause they are run by old women who could not get clong otherwise.” [From the New York Time: of February 4, 1950] De.ays Now SEEN ON HAINAN ATTACK—MAO’S Trip AND More EFFECTIVE NATIONALIST Forces HELD SLOWING MOVES BY REDS (By Burton Crane) Tarren, Formosa, February 3.—Nationalist intelligence reports filtering through from the mainland indicate great changes in the military sttuation. Strategists no longer e..pect the Commu- nists to launch an attack upon Hainan Island within this month. They say there are reasons to believe that any attack any- where may be delayed until Mao Tse-tung returns from Moscow and then the attack may come elsewhere. Communist plans were influenced beyond any doubt by the realization that these lat- ter-day Nationalists can actually fight effec- tively. No longer is a Red advance merely a question of saying boo and giving chase. Taipei still thrills to the story of the final retreat from Fukien Province on the main- land where a single Nationalist regiment held an entire Communist armv long enough for other Nationalists to get away—and then was left behind. This was followed by highly successful Tinghai and Quemoy Island ac- tions. In the former battle the Reds held the northeast top for some time but were cut off and forced to surrender One measure of the changed Nationalist spirit came from prisoners taken then who declared although they had been in the Red front lines since the Suchow campaign this was the first time they had fired rifles. There are four areas along the coast where Red attacks are expected. The first area is the Chusan Islands, including Tinghai, from which the Nationalists have been block- ading and bombing Shanghai. The second, Quemoy, also is called Kingmen and if held can prevent the Reds from using the Amoy area as a springboard for the invasion of Formosa. The third is Hainan, which holds the Orient'’s largest and best fron-ore de- posits. They could become the supporting arch for rebuilding the Nationalist economy needed before a return to the mainiand would be possible. Fourth, of course, is For- mosea, but it now seems far down the schedule, Resumption of the Red offensive now is expected to come in the Chusan Archipelago, probably on islands other than Tinghal, which proved so expensive. Nationalist strategists base this conclusion on intel- ligence reports that the Communists have not yet started amphibious training any~ where near Hainan. Although they are busily 1637 engaged at tt opposite both the Chusan and Quemuy positions only their force at the former is anywhere near adequate for the effort. There they are reported to have five armies or about 100,000 men—incidentally fewer than the Nationalists—but at Quemuy they have only three armies. The Hainan attack, when and if it comes, will be a test run for both sides for a pos- sible future assault upon Formosa. The actual number of invasion craft al- ready collected is uncertain because the Reds have been gathering them in river mouths and inlets and camoufiaging them with trees, The Nationalists believe the number of self- propelled boats and jJunke certainly is below 500, so many would need towing, meaning an average speed of about 6 knots. Thus at least 20 hours would be consumed in pas- sage and the Nationalist Atr Force and Navy would have many daylight hours for attack. Thus far the Nationalist Air Force is domi- nating the skies. The Communists are be- lieved to be holding their small air force— estimated at 50 planes of which only 30 are fighters or bombers—in reserve until the last-minute order to provide some air cover. The Nationalists have been making periodic attacks upon Kwellin, Liuchow, Chihkiang, and other hinterland fields where these planes presumably are hidden and steadily wrecking coastal strips which would serve as invasion air bases. Strategists cannot verify a report that the Reds are getting 200 planes from the Czechs but comtort them- selves with the consideration that training crews for them would take time, even if they do arrive. Mr. KNOWLAND subsequently said: Mr. President, I ask unanimous consent that therc be printed in the body of the Recorp immediately following remarks made earlier in the day by the senior Senator from New Jersey (Mr. Smitx), who also placed some articles in the REcorp dealing with Formosa, an article entitled “Formosa’s Weaker Thread,” by the able foreign correspondent Clyde Farnsworth. There being no objection, the article was ordered to be printed in the Recorp, as follows: FPORMOSA’S WEAKER THREAD (By Clyde Farnsworth ) Tarpen, Formosa, February 8.—The f..te of Formosa hangs by two threads—economic and military. They are intertwined. If one breaks, the other also will snap. Of the two, the economic thread appears to be the weaker, The Chinese Nationalist strength for mili- tary defense isn’t determined yet, but it seems to be growing. There are signs of heightened morale in the armed services, of cooperation between islanders and mainland newcomers and of ingenious self-help against communism, Meanwhile, there are national and provin- cial budgets to balance, agricultural produc- tion to be increased, foreign exchange to be won and conserved and expenses of defense to be met, if Formosa is to survive. Life could be squeezed out of Formosa’s resistance by economic pressures, and it looks as if the Communists may be counting on that to win this rich and strategically placed Pacific island. While the armies are being trained better than they ever were in China, while shore defenses are being raised, and while materials and weapons of war ingeniously are being extracted from Japanese left-overs, as well as
1638 from rusting piles of Pacific war junk sold to the Nationalist Government by the United States, the economie problem has emerged to haunt the Nationalists A grant of $28,000,000 from the Economic Cooperation Administration will not solve this problem The assistance would last until June. But Formosa needs more than the gradual effects of rural rehabilitation, the shipments of fertilizer, and the lift in basic commodities which that $28,000,000 is expected to provide. According to Formosa’s hard-driving Gov- ernor, K. C. Wu, the island needs revival of the ECA industrial rehabilitation plan which was shelved last spring for Formosa as well as for China’s mainland. Many of the Nationalist arguments have been directed at gaining release of about 100,000,000 for industrial rehabilitation which, although allocated to China by the ECA, is now frozen. (Congress is consider- ing a bill to extend the expiration date to June 30.) Mr. Wu feels that if such an allocation is spent on the rehabilitation of Formosa’s in- dustries, transport, and power supply it prob- ably would make Formosa self-sufficient CONGRESSIONAL RECORD—SENATE within 2 years--and Formosa could get off the American dole Formosa's economy is basically agricul- tural. The Nationalist Government has driven through a firm program of rural rent reduction and provided most of the know- how for agricultural rehabilitation. But in return it now must draw substantially all of its revenues from Formosa or go broke. TAX RATES ON EMPLOYEES UNDER RAIL- ROAD RETIREMENT AND SOCIAL SECU- RITY SYSTEMS Mr. BUTLER. Myr. President, I ask unanimous consent to insert at this point in the body of the Recorp a tabulation prepared by the National Railroad Pen- sion Forum, Inc., making a comparison of the respective tax rates on employees under the Railroad Retirement and Social Security Systems and the respec- tive retirement benefits provided for employees under those two Systems. There being no objection, the tabula- tion was ordered to be printed in the REcorp, as follows: Exuisir A—Social-security versus railroad-retirement tax payments—a comparison Social Security tax rate | Railroad retirement on $250) maximum earnings per month or $3,000 per year, Year and total cost Percent a | 1950 #122 eee ------------ 13 2 Amount $30 30 30 30 30 0 30 30 30 30 30 30 30 $44 72 2 72 2 72 2 72 2 72 2 72 2 72 2 72 2 72 2), 90) 2'y in 0) guy! g0 2lhe WO why! v0 3 108 3 108 3 JOR 3 108 3 108 ay M7 tax rate on $800 max1- mum earnings pei Rall workers pald-= mnonth or $4,600 per yeur, aud total cost dapoy Times | Dollars | Percent Pereent Amount more more moro 244 gon 3 30 $69 230 244 Ww 3.30 69 230 24 09 3 30 ov 240 3 108 3 60 7h 200) 3 108 8 60 74 260 3 108 3 60 78 2h 3l4 7 30 87 200) 3ly M7 3 90 47 200 217 M7 3 90 87 2K) BIg! 126 420 96 340 53, 207 6 90 177 5W) rir 7 6 00 177 £90 6 216 7, 20 186 620 neeweecee eee 1,728 |oe... ---. 1,338 |_..----_-- 6 216 4 8 171 380 6 $216 400 $162 300 6 216 3 00 144 200 614 22h 3126 153 212'4 oly 205 312K 13 21244 Oly 225 3125 153 212) 3 Os 225 3.125 153 21g lg 205 3 125 153 212g oly] 228 3 125 is 21242 oly 228 3 125 153 git, oy 225 3125 153 21213 bla 224 2 40 135 15) oly 225 2 80 135 150 614 225 2 50 135 150 614 225 2 BO 135 150 i, 225 2 60 135 150 Oly 22h 2 08 117 108 oy! 22h 2 08 17 108 644) 224 2 08 117 108 Ob, 235 2 08 117 108 04 225 2 08 117 108 4! 225 1 03 108 #3 1 From 1937 through 1949, rail workers paid almost 444 times more, 343 pereent more than those covered by social security, 2 Present tax rates, now in effect. 2 From 1950 through 1970, rail workers paid 2 60 times more, 160 percent more, than those covered by soctal security, From 1937 through 1970, rail workers paid 2.92 times more, 192 percent more—almost 3 times more than those covered hy social security. Source: Rail Pension News, published by National Railroad Pension Forum, Inc,, 1104 West 104th I’l., Chicago 43, Ill. The above exhibit A has been submitted to the Senate Finance Committee now holding hearings on H R 600, for their study and consideration that rail workers should receive the same increase in benefits pow proposed for those covered by social security, and has been submitted by Mr Thomas G. Stack, president of the Nation Railroud Pension Forum, Inc (a voluntary organization of univn and nonumon rai] workers), February 1960, FEBRUARY 8 Exuiptr B—Soctal-security benefits versus railroad retirement—a comparison Railroad] Rail wo kers received— Social Vile security, retires — Year maxi | agg? Por mum mum Times |Dollars) cont possible possible | ™0te more | ore () $1, 440 0 $1, 440 0 (1) 1,440 0 1,440 0 $1,020 1,440 1.41 420) | 411 1, 02 1,440 141 420 | 41.1 3, 020 1, 440 1.41 420} 411 1,020 1,440 1.41 420} 411 1,020 1,440 1.41 420 | 41,1 1,020 1, 440 1,41 4 4i1 1, 020 1, 440 1 41 420] 411 1,020 1,410 1.41 420 41.1 1,020 1,440 141 420 41.1 1,020 | 71, 5&4 1,45 564 55 1 1, 020 1, 728 1 60 708 | 604 18 years 3..) 11, 220 19, 152 1 70 7, 982 70.6 1950.22.22... 1,020 | 41,728 1 69 708 | 60.4 Pro posed 7 Year maxi- wiitll. TVimes | Dollars Ter. poset: receive Jess less less ble 1050__.------ $1, 800 $1, 728 104 $72 416 Ch) 1, 800 1, 728 104 72] 416 W222 3, 800 1, 728 104 72 416 WSS eae. 1, 800 1,728 104 72 4.16 W54 L222 ee. 1, 8) J, 728 10+ 72 4.160 1955.02. 1, 500 1,728) 104 72| 4,16 1056__ 222-2 1, 800 1 728 104 72 416 1, 800 1,728 1 04 G2 4,16 1, 800, 1, 728 1 04 72 4.16 1, 800 1, 728 1 04 72 4.16 1, 800 1, 728 1,04 72 4.16 1, 400 1, 728 104 72) 4.16 1, 800 1,728 1 04 72 4.16 1, 800 1, 728 104 72 416 1064, 7, 8) 1, 728 1 04 72 4.16 1965 1, 800 1, 728 1 04 72 4.16 1966. 2-22 -2- 1, 300 1, 728 1 04 72| 416 17 years §..] 30,600 | 29, 376 1 04 1, 224 416 1, 800 2,016 1,12 216 | 12 1, 800 2,016 112 216 | 12 1, 500 2, 016 1:12 216 | 12 1, SU) 2,016 1.12 216 | 12 4 years ®.. 7, 200 8, 064 112 864 | 12 1No benefits until 1939 220 percent inerease, July 1, 1948—before, $720, after, $864, total, $1,584 4 From 1937 through 1949, rail workers received Jess than 34 more than those covered by social security. ‘Present law. 4 From 1950 through 1966, rail workers receive over 4 percent less than those covered by social security. 6 From 1967 through 1970 rail workers receive less than Y% more than those covered by social security Source: Rall Pension News, published by National Railroad Tension Forum, Inc., 1104 West 104th Place, Chicago 43, I] . The above exhibit B has been submitted to the Senate Fimanco Committee now holding hearings on H. R_ 6000, for their study and consideation that rail workers should receive the same mercase in benefits now proposed for those covered by social security, and has been submitted by Mr. Thomas G, Stack, president of the National Railroad Pension Forum, Ine (a voluntary organization of union and nonunion rail workers), February 1950. COLORADO RIVER DAM AT BRIDGE CANYON The Senate resumed the consideration of the bill (S. 75) authorizing the con- struction, operation, and maintenance of a dam and incidental works in the main stream of the Colorado River at Bridge Canyon, together with certain appurtenant dams and canals, and for other purposes. Mr. KNOWLAND. Mr. President, the pending legislation, Senate bill 75, deal- ing with the central Arizona project is of far-reaching importance not only to the three States of Arizona, California, and Nevada, which are directly con-