[SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING JUNE 30, 1956]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP63T00245R000100180021-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: August 21, 2006
• Sequence Number: 21
• Publication Date: July 30, 1955
• Content Type: OPEN

Approved For Re4Pa's\kidoi?itgg, cltAffkM39:016P1M001 OO /81 July
c, 1.' i;,,k at lief atiiie It
to ne s lc-nniiie that would
resul t in ret elute We belie
Liu.; is iir,t the cast' anti tni,L the T1CW rules
Udoptco to 1954 are better than the old law.
Urder the old law, companies could take
on sales cit Treiti,nry stock if they
had a loss or, it, hut if there was a gain in-
PC, instead Of selling Treasury stock :old
VLnI a tax to pay oil the gain they could
Ima stock which did not result
In any taxable gain. Thus the old law really
provided a MOphole because companies could
like Ii sacs but tiveAd taxes on gains The op-
. purtunity. to handle transactions to the tux-
' pa) cr's advahtage was noted in the report
of the Joint Treasury and Congressional Stair
C,Ininitt:e0 in 1953 Which studied this point
ol the Lax law.
? Corporations typically buy and use their
own stock only for limited purposes, in con-
, ?ection with mergers, or stock option and.
.nanna.- plans. These transactions can be
,snd often are handled by newly issued stock
and are 'then clearly capital transactions.
The fact that they may buy their own stock
aid use it instead of new stock does not
change the real character of the transac-
thins.
The .Securities, and noliange Commission
that any gain or loss arising front
dealing:1 in Treasury stock affects the capi-
account and should not be reported In
ii.e,.2sw or in earned surplus. Thus the old
tax rule was directly contrary to what was
required for reports to stockholders and the
These are relatively few instances where
corporations deal in their own stock for
proht, and loss. If officers arrange for a
cnrporation to buy up its own stock because
of inside information, both the corporation
and its officers are liable to the same sort
of penalties under the . Securities and Ex-
change Eict .as the officers would be if they
traded in the stock for their own account.
We shall continue to watch the operation
of this and all other provisions of the tax
law. If any abuses arise we shall promptly
report them i'tOthe Congress.
? AlthouglEi'haVe a high regard for the
;SecretaryiktifilirineMber of the tax-
? writing Ways and Means Committee, I
? feel qualified through actual experience
? to recognize the inaccuracies of the Sec-
? rotary's. opinions with respect to the
existence of a loophole and I was under
the impression that his 'statements re-
garding the operation of the laws ad-
ministered by the Securities and Ex-
, 'change COMMission were incorrect. To
verify my.?impreSsion I wrote to the Se-
... . ,
'Opriliesatiellptchange .Commission on
Onne;t1;i 1955,*Skirig Ifithere was any law
:liegulat10111itipOsIng. a penalty on a
Col poratiOhjitiYing and selling its own
stocky,;sitrillar,:40,ythe penalty imposed
!upon the-,9111cers.cir directors of corpora-
tions who indulge it Inside dealings. On
ihis,,point.tbecUrities and Exchange
ConnniSS106p,lied , as follows:
Tiiti.o'i,Wkijafr.!.;:;iiii,r..mulatlon which MI-
.?:.lieseS-1100,I*1,00006h: that buys and sells
..1ts tw.,M)a,t,00Qpip4enallty that is imposed
iotpriniltificitirS'atitti,directors who trade in such
Mck,,,cittiMASMOVitledby section 16 (b) of
XehAb.geAOI.. of 1934. In this
' exempts from
00010 (b) 'securities re-
lierltir Its account during
."cl by,te issuer. Clearly.
,o,Areeovir trading profits
rattil
liC'SedUritiCS and Exchange Commis-
Ioti me with the informa-
tiun that 'of hundreds of thousands of
corporation:, required to register, only
376 companies subject to the Public
Utilities Holding Company Act of 1935
and 354 companies subject to the Invest-
ment Company Act of 1990 are subject
to restrictions imposed by the Securities
and Exchange Commission regarding the
acquisition and sale of the companies'
own stock. Tile Securities and Exchange
Commission has similar authority with
respect to securities issued by closed-end
investment companies. It appears that
the SEC's statement is directly contrary
to that of the Secretary of the Treasury.
The rest of the Secretary's statements
are similarly subject to criticism because
they are not directed to the subject at
hand. For example, it is true that the
Securities and Exchange Commission
holds that gain or loss arising from deal-
ings in Treasury stock affects the Capital
account of a corporation and should not
be treated as income or earned surplus.
However, this ruling is premised upon the
requirements not of taxation but busi-
ness reporting. The logic of bookkeep-
ing niay,,require such profits to be ex-
cluded from the operating income of a
corporation, but the logic of taxation
was, until section 1032, and should now
be. equally adamant in requiring such
Profits to be included in income for the
purpose of determining the corporation's
income tax. These profits should also
be included in earnings and profits of the
corporation for purposes of determining
the amount of dividends to be taxed to
the corporation's shareholders. Surely,
the Secretary of the Treasury could not
believe that earned surplus for purposes
of bookkeeping is equivalent to earnings
and profits, or that the considerations
governing taxation are always identical
to those adopted by accountants in their
theoretical analyses. Yet, to read his
letter, one would think,he does.
The Secretary of the Treasury as-
sures me in his letter that there are
relatively few instances where corpora-
tions deal in their own stock for a profit.
However, he does not attempt to prove
his point with statistics, and his state-
ment would seem to be contradicted by
the fact that 11 cases, involving $830,-
000, are currently pending before th
courts. Untold others involving pre
tion 1032 law are yet to be proce
before assessments can be made. If only
those companies listed on the New York
Stock Exchange are taken into account,
the amount of Treasury stock held :is
tremendous and the volume of trading
In such shares is more than substantial.
It is my belief that the enactment of:
section 1032 has served to. increase the
volume of trade in Treasury stock, and:
such trade will continue to increaseln-
volume now that such transactions are
no longer subject to the capital gains
tax. Section 1032 is more than a- loop-
hole. It is an open sesame to .specullt-i?
tion by a corporation in its own stock-
an invitation to reap untaxed profits.
?'
The law existing prior to the enact...'
?ment of section 1032 had its imperfec-
tions and uncertainties. This, I do not
deny. But section 1032 is worse as a
cure than the disease. Under the old
law, corporations were not freed from
the reporting requirement with respect
to dealings, in Treasury stock generalIY
imposed by the tax laws. This pro-
vided a source of information as to the
nutnber of corporations dealing in their_
own stock and as to the number antl.
value of the shares involved. This re-
quirement, together with the fact that.
corporations were required to pay:tic.4.1
on any gain dreived from dealing'in,theke
own shares, acted as a brake ou
number of companies indulging:hi:10:
activity.
Putting the best face possible 'Until),
section 1032, it is a poor substitute
the Treasury regulations which its it17;;
thors intended it to replace. ? The'pro.
vision is not as broad as the regulatiOS:i
It mentions neither the tax consequenceS
to a corporation on acquisition Of
own capital stock nor the consequenee
to the corporation when such stock is .?
exchange for services rather than.!?.
money or property. If the objectives of
the section had any justification at ail
that justification lies only in the fact:
that corporation should be entitled to
reward the services of its employees,
through incentive plans involving the:
corporation's stock.
'file tax lass have long been designed
to encourage such incentive programs,
However, section 1032 falls to include
services as one of the considerations for ?
which a corporation can gain its benefits.
Yet, a loophole is wide open in it for
transactions involving money or prop-
erty.
I believe that it Is possible to deal with
the problems proposed by the old TreA-
ury regulations without granting the
carte blanche of untaxed profits award-, .
ed by section 1032. For that reason; I .
renew my request to the Secretary of the,
Treasury for a review of section 1032?:
for a review of the workings of section..i!:
1032 in conjunction with subchaptei Cofi
chapter) of the Internal Revenue Code'
of 195 and urge him to make record-
mend ions for bringing that section
ne with the sound administrative
fiscal principles which should gov ?
our tax laws.
SUPPLEMENTAL APPROPRIATIONS':
FOR THE FISCAL YEAR ENDING
JUNE 30, 1956 ?
Mr. CANNON submitted the follOwin
conference report and statement: ?
CONFERENCE REPORT (H. Ran'. No. 1586) ,
The committee of conference on the disl:??,
agreeing votes of the two Houses on 'the
amendments of the Senate to the bill (H ft.
7278) "making supplemtntai appropriations
for the fiscal year ending June 30, 1956, and,
for other purposes," having met, after Jule
and free conference, have agreed to reporn-i
mend and do recommend to their respOtlye'"
Houses as follows:
? That the Senate recede from Its ,arne
ments numbered 13, 46, 57, 65, 66, 67.`6C
' 70, 71, 72. 73, 74, 87, 96, 99, 101, 110, 1117-
118, 119, 121, and 136. ,al
That the House recede from Its disagree-
ment to the amendments of the Senate
jirii-
bored 1, 4, 5, 6, 7, 8, 9, 10, 11, 15, 17, 18, 26,
32. 36, 42. 44, 47, 51, 55, 60, 77, 90, 94. 97, 102,
106. 108, 113, 114, 120, 124, 125, 126, 129, 132.
133, 134, 135, 137, 139, 140, and 141 and agree
to the same.
Amendment numbered 12 That the House
recede from Its disagreement to the amend-
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. 10
It 'UI amount Loan au-
]. undet title LI of the
re -el, Vern, l'enent as amend-
I'; e,ne: l'hat mit to exceed
'Irl 0111. :dial! le borrowt'd in
I-ern the f,eeretary ut the Trees-
danee the previsions Set
(us head in the Department of
,re Appropriation Act, 1952."
Semlte agree to the same.
.',....endne-m: numbered 14: That the House
I:otn '.ts disagreement to the amend-
he Senate numbered 14, and agree
te the -.eme ,'nth an ameinitnent, as follows:
hi ie...., 111,, suns proposed by said amend-
ilie,rt $350.000"; and the Senate agree
A.ziendment numbered 16: That the House
r ee,, ? tient its disagreement to the amend-
'Are Semite numbered 19, and agree
with an amendment, as follows:
ef the tOt) tier stricken out and In-
IV said amendment Insert:
-Oili.r of the Genera! Counsel
edcliOceuti anmunt for 'Office of
::,e tieme .1 member $10.000."
agree to the same.
numbered 21: That the House
fe in its dit,agreernent to the amend-
t) Led if ;lie SellzH.P Lumbered 21, and agree
to t!.e eie wi Lh an amendment, as follows:
lee sum named In said amendment
teser:. -$(.30,000'; and the Senate agree to
Antelidment numbered 24: That the House
reeede Irons its disagreement to the amend-
men of the Senate numbered 24, and agree
t ) the ,min( with an amendment, as follows:
In lieu of the aim narned in nald amendment
Insert "fS37,730,000"; and the Senate agree
to lie, sante.
Ameedment numbered 30: That' the House
ree from its disagreement to the amend-
meet of the Senate numbered 30, and agree
to IC Sante with an amendment, as follows:
In lieu of the matter proposed by said
amendment insert: :
]"Cer4re .4g6tcY
? ' "Construction
"Fr the 1).'eptirettion of detail plans and
specifh attons of .a ? Central Intelligence
Aeeney headquarters installation and for
other purposes as authorized by title IV of the
Act of July 15, 1955 I Public Law 161), to re-
main available until expended, $5,500,000."
And the Senate agree to the same.
Amendment numbered 45: That the House
recede from its dikagreement to the amend-
ment of the Senate numbered 46, and agree
to the same with ,:an amendment, as follows:
Tn lieu?'oi'r4,1?6;*.uit"..?:riamed in ?said amend-
ment instirt:',$60,900";;:aud the Senate agree
to, the,
? An lentlini,?lifiintip,bred 42: That the House
'.tecede? frOIMICS,!?"0:11sagreetrient to the amend-
ment ot.'llieSen:itte,:ntirnbered 52; and agree
? to' the igitne?Wifh-ari.4tMeridnient, as 'follows:
let lieu" of 'the 'sUrp',Proposed t)y said amend-
ment insiri'44841.0.0,0!",,and.the Senate agree
to 5th sarn04'.:; I.: ?
-Aitiendiaien 04,53 at the House
:..rec0d e,ernen to th
" '0 amend-
'? merit:of-460:i e t1inberod 53, .and agree
...tO,::tlit.,giiie:/*41)., 00riditielit;: at follows:
xiii " e?d.lby? Said amend- ?
:TTVAIC't 19,0"?00' 40.ild,:ithe Senate
.111e0,the House'
r,
Ocl,04.4q91?.;- 1916f9OrienVto ?:the amend.
54; And agree
to riairieNftli'aiiamiiiidment, as follows'Ttt:
natiried in said amend.
. .
ment ?Arigert"$1.500,000"; and the Senate
agree to?the,?61d110.."'t:.V,1,?' -
1, I l? I: t'? ?
Approved For H6Tee'Se- -210106,1t6SY-21'!.el-A;5R-DrF6/T-till ON5R0Q0100180021-8
Amanctinent munbered Iii Idm.ie 92, 53, 95, 98, 104, 100, di5. 117, 123, 127,,
recede from its disagre..aient to the amend- 128, 130, 131, 142, and 113.
CLARENCE CANNON,
'JOHN TABER,
As to chapter I-
JAMIE L. WHITTEN,
FRKD MUISFIvt.L.
.ii. CARL ANDERSEN*,
to chapter II:
PRINCE II. PRESTON, Jr
AL.DERT THOMAS.
FRANK T. Bow,
As to chapter III:
' GEORGE MAHON,
HARRY R. SHEPPARD,
Roarer L. P. SIKES,
R. B. WIGGLESWORTII,r
Esarrr P. SCRIVNER,
GERALD R. Foxe, Jr.,.
As to chapter IV:
Orro E. PASSMAN,
J. VAUGHAN GARY,
R. B. WIGGLESWORTH,
.0:chapter V:
GEORGE Aeressws.
GEORGE MAHON,
? Ivoa D. FENTON,
As to chapter VI:
ALBERT THOMAS,
? SIDNEY R. YATES,
JOHN Puti.Lirs.
As to chapter PH:
MICHAEL J. KIRWAN,
W. F. MORRELL.
? BEN F. JRNSEN,
As to chapter VIII:
JOHN E. FOGARTY, '
A. M. FERNANDEZ,
T. MILLET RAND.
As to chapter IX:
Lours C. RARAUT,
MICHAEL J. KIRWAN,
As to chapter X:
Joint J. Roomer,
PRINCE B. PRESTON, Jr..
P. R. COI/DRAT, Jr.,
As to chapter XI:
J. VAUGHAN GARY,
OTTO E. PASSMAN.
, GORDON CAN FIELD, '?
tO Chapters xar, xur. XIV, and XV:
, ?
?
1.0 161
Meta Of the .5ana.,e tiuulbered 63, and agree
to Ult. same with en amendment, es follows:
In lieu of the sum named in said amend-
ment Insert "$122,500"; and the Senate agree
to the same.
Amendment numbered 79: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 79. and agree
to the same with an amendment, at follows:
In lieu of the suns proposed by said amend-
ment insert -$1,200,000"; and the Senate
agree to the same.
Amendment numbered 81: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 81, and agree
to the same with an amendment, as follows:
In lieu of the suns proposed by said amend-
ment insert "$750,000"; and the Senate agree
to the same.
Amendment numbered 91: That the House
recede from Its disagreement to the amend- '
ment of the Senate numbered 91, and agree
to the same with an aniendment, as follows:
In Ileu of the sum proposed by said amend-'
merit insert -$250,000"; and the Senate agree
to the same.
Amendment numbered 100: That the
House recede front its disagreement to the
amendment of the Senate numbered 100,
and agree to the same with an amendment.
as follows: In Item of the sum proposed by
said amendment insert "4220,000"; and the
Senate agree to the same.
Amendment numbered 103: That the
House recede from its disagreement to the
amendment of the Senate numbered 103.
and agree to the same with an amendment.
as follows: In lieu of the matter proposed
by said amendment insert:
"Mental Health Activities
"For an additional amount for 'Mental
health activities'. $250,000.
And the Senate agree to the same.
Amendment numbered 106: That the
House recede from its disagreement to the
amendment of the Senate numbered 105,
and agree to the same with an amendment, ,1
as follows: In lieu of the sum proposed, by
said amendment Insert "S600.000"; and their
Senate agree to the same.
Amendment numbered 107:. That the
House recede from its disagreefnent to the
amendment of the Senate numbered 107, and,
agree to the same with an amendment, as,
follows: In lieu of the sum proposed by said:
amendment insert "6256,327,000"; and the
Senate agree to the same.
Amendment numbered 116: That ? the,
House recede from its disagreement to the
amendment of the Senate numbered 115, and,
agree to the same with an amendment, as
follows: In lieu of the sum proposed by said
amendment insert "81.970,000"; and the
'
Senate agree to the same.
Amendment numbered 122: That, the
House recede from Its disagreement to thel
amendment of the Senate numbered 122,,
and agree to the same with an amendrnent;l:"
as follows: In lieu of the sum proposed br ,,at; theconference on the disagreeing votes7:
said amendment insert "63313,630"; and Alio
f' the 'two Houses on the amendments
Senate agree to the same. Senate' to the bill (H. It.. 1278) making
.,fle0a1,-
Amendment numbered 138: That 'the .4 'appropriations for the
House recede from its disagreement to';'tne June 80, 1956, and for, other,
amendment of the Senate numbered '"purposies. submit the following statementAtt
and agree to the same with an amendmenticcaplariation of the 'effect of the action agreed
as follows: In lieu of the matter proposed, b7T4ipowAnt!. recommended In the:auiPW'
said amendment insert "SenateDocunien64' 4ng., conference report. as to,, eitchof 1,6
Numbered 75 and"; and the Senate 4301,' -dainendinents. namely:
?
.Lours C. RAIIAUT. 4
W. P. NORRELL.
WALT Holum,
nagers on the Part of the House.
CARL HAYDEN.
RICHARD B. Roseau.
DENNIS CHAVEZ,
ALLEN J. ELLENDER,
LrgrEa HILL (except as
to amendment num.'
ber 104),
Joni; SrrNtris,
STTI,ES BRIDGES,
LEVERRTE SALTONSTALL,
Wsc. P. Nrrowr.stro
Mwrosr R. YOUNG,
? EDWARD 3. THEE,
daggers on the Part of the Senate.-
' Srarsatsam
e managers on the part of the House.
the same.
The committee of conference report in dii.
agreement amendments numbered 2, 8, 13:
20, 22, 23, 25, 27, 28, 29, 81, 83, 34, 36, 37.
35. 39:40, 41, 43, 48. 49, 50. 56. 58, 59, 64; Amendment Nos. 2 and 8; Reported
62. 84, 75, 76, 78, 50, 83, 83. IX, 85, et, 88, 89. n'ilisagreement.
cRAPTsai I
rtment of Agriculture,
Amendment No, 1: Inserts heading.,
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1 '
Approved For Re I effqfpNy&I,A ItEgT6TO_OftlagRO1 001 80021 -8
.; Through 8: Strike out
)1, 1.+.11.:?Th,ge as proposed by the Senate.
. No. 9 7 .Appropriates $33,000
:.;:e Commodity Exchange Authority as
ll'r,Poied by the Senate.
Amendmeni Nos. 10 and 11: Insert head-
,
, tnendinent? No. 12: Authorizes $15.000,-
000?tr loans under title II of the Bankhead-
J?mys Fhltil Tenant Act as proposed by the
Sri e. with perfecting amendment.
Amendment No, 13: Eliminates $25,000,-
(f00 proposed by The Senate for farm housing
hone
. Amendment. No 14: Appropriates $350.000
for sAiaries and expenses, Farmers Home
Administration Instead of $1,300,000 as pro-
posed by the Senate. .
Amendment No. 15: Strikes out House
language as proposed by .the Senate.
Amendment No. 16: Appropriates $40,000
for the (Mice of the General Counsel instead
of $85.000 as proposed by the Senate, and
eliminates House lam,uage appropriating
$28000 to this office for the rural develop-
ment program.
Amendment Not 17 and 18: Strike out
House language as proposed by the Senate.
Amendment Nos. 19 and 20: ? Reported in
disagreement.
CHAPTER II
Department of. Commerce
Amendment No. 21: Appropriates $600.000
for operation and regulation, Civil Aeronau-
tics Administration instead of $1.200,000 as
pL000sed by I he Senate.
Amendment Nos. 22 and 23: Reported in
disagreement.
Amendment No. 24: Appropriates $37.-
730 000 for the Inter-American Highway in-
stead of $49,730.000 as proposed by the
ien ate.
Amendment No. 25: Reported In disagree-
ment. The motion which will be offered by
the managers will recommend an additional
$500,000 to be used entirely for hurricane
and tornado research.
Amendment No. 26: Inserts heading.
Amendment Nos. 27 through 29: Reported
In disagreement.
:Cfl*FI'ER rxx
Central intelligence Agency
? Amendment ,No. 30: Appropriates 0.500,-
000 for the Central Intelligence Agency head-
quarters installation instead of 87,000.000
proposed by the Senate. The managers, by
the action taken, are not designating any
particular site nor do they preclude the selec-
tion of any particular site. Of the amount
appropriated not to exceed $350,000 may be
used for the purchase of a site in the event
time Langley, Virginia, site is not selected;
and in the event the Langley, Virginia, site
(which is now Government owned) is selected
not to exceed $2,500,000 of the amount ap-
propriated may be used in connection with
the taking of steps with regard to roads and
other ,facilities..
'! ,Department 0/ the Army?Military
? ? Construction ,
-
Amenrlint:No..31: Reported in disagree-
ment for technical reasons, The motion
which will be 'offered by time managers will
reebrnmend the sum of $485,077.000 which
,
represents Modification of the amount in the
deletionSenate bill by of the item of $1,-
,-350.000 for faintly housing at the Black Hills
OrdnaliCe:DePot.::'Sonth'..Dakota. The In-
crease of 8200,000 proposed by the Senate for
'Fox t,LeavenWorth,.:Kansas., and the increase
1.$1,265,000 proposed by the Senate for Pert
Hutichuca, Arizona, are included in the total
appropriation agreed upon. .
. Department of the Navy?Military
- construction
Amendment No. 32: Inserts beading.
Amendment No. 33: Reported in disagree-
ment for technical reasons. The motion
which will be offered by the. managers win
recommend the sum of 6442,628,300, which
represents modification of the amount In the
Senate bill in the following respects; (1)
Omission of the $2,000,000 for plans for a
new drydock at the Puget Sound shipyard;
(2) Restoration of the $350,000 for plans for
a new Armed Services Medical Library; and
Om Restoration of 81,000,000 (allowing a
total of $3,000,000) for family housing at
the Marine Corps base. Quantico, Virginia.
In connection with acceptance of the Senate
addition of 83,800,000 for a new manufac-
turing building at the Naval Ordnance Plant,
Macon, Georgia, the managers on the part of
the Senate and the House are in agreement
that this construction project shall not be
undertaken unless and until the Secretary
of Defense certifies in writing to the Com-
mittees on Appropriations of the House and
the Senate that such project Is essential to
the national defense and in the best interests
of the Government.
Amendment No. 34: Reported in disagree-
ment.
Department of the Air Force?Military
construction
Amendment No. 35: Reported in technical
disagreement. The motion which will be
offered by the managers will recommend an
appropriation of 8994,291,000, of which $255,-
000,000 shall be derived by transfer from
the appropriation "Procurement and produc-
tion, Army". This represents modifications
of the amount In the Senate bill In the fol-
lowing respects: (1) omits $5,822,000 for
Grand Forks Air' Force Base; (2) omits $1,-
881,000 for Traverse City Area Air Force Base;
(3) omits $155,000 additional proposed by the
Senate for a second swimming pool at Lake
Charles Air Force Base; (4) omits $2,867,000
additional proposed by the Senate for a hos-
pital at Lincoln Air Force Base, and deletes
language relating to this base; (5) omits
$218,000 additional proposed by the Senate
for a second swimming pool sit Travis Air
Force Base; (6) omits $129,000 additional
proposed by the Senate for a second swim-
ming pool at England Air Force Bane; (7)
provides 120.000,000 for the Mr Academy
instead of 679.527,000 as recommended by
the Senate; (8) reduces the amount for clas-
sified overseas bases by 616,556,000. and (9)
deletes $70,000 to correct an error in previous
estimates.
The managers are 'agreed that the Air
Force should proceed with land acquisition
and construction of the Grand Forks Air
Force Base with presently available funds
In the amount of $8.280,000. In the event
additional funds (within limit of the total
authorized for this base) are required for
obligation during fiscal year 1956 they may
be obtained from other available funds
through the regular reprograming proce-
dures.
In providing 1120,000.000 for the Mr Acad-
emy the managers are of the opinion that
essential preliminary construction can pro-
ceed pending further finalisation of the de-
sign and plans. Request for additional
funds based upon more complete design ?
work can be presented to the Congress In
the next session.
Funds were left in the bill for a second ,
swimming pool at Hunter Mr Force Bases
because the existing pool at this ham was
constructed from nonappropriated funds. _
Amendment No. 36: Inserts center heading.
Amendment. Nos. 37 through 41: Repotted
In technical disagreement. The managers '
on the part of the House win Morelli recede ?
and concur.
cwarnee IV
Department of Defense--Ctott funetimUl
Amendment No. 41: Inserts heeding.
Amendment No. 43: Reported in disagree..
meat.
CFI APTPIt V
General Government matters
Amendment No. 44: Inserts chapter Lum-
ber.
Amendment No. 45: Appropriates 450.003
for Office of Defense Mobilization instead of
6100.000 as proposed by the Senate
Amendment No. 46: Deletes Senate pro-
posal to appropriate $25,000 for Distrfrt of
Columbia Auditorium Commission.
Amendment No. 47: Inserts heading.
Amendment No. 48: Reported in disagree-
ment.
Amendment No. 49; Reported in disagree-
ment.
Amendment No. 50: Reported In disagree-
ment.
C HAPTILR V/
Independent offices
Amendment No. 51: Changes chapter
number.
Amendment No. 52: Appropriates 6325.000
for the Federal Civil Defense Administration
for "Operations" instead of $650,000 as pro-
posed by the House and 81,000,000 as pro-
posed by the Senate.
Amendment No. 53: Appropriates $10,-
000,000 for "Surveys. Plans, and Research"
of the Federal Civil Defense Administration
instead of $8,000,000 as proposed by the House
and $12,000,000 as proposed by the Senate.
Amendment No. 54: Appropriates $1.-
500,000 for "Salaries and expenses, Civil De-
fense Functions of Federal Agencies" instead
of $3,050,000 as proposed by the Senate.
Amendment No. 55: Inserts heading.
Amendment No. 56: Reported in disagree-
ment.
Amendment No. 57: Deletes item of
8300,000 for "Acquisition of Land, District of
Columbia" proposed by the Senate.
Amendment No. 58: Reported in disagree-
ment.
Amendment No, 59: Reported in disagree-
ment.
Amendment No. 60; Inserts heading.
Amendment No. 81: Reported in disagree-
ment.
Amendment No. 62: Reported in disagree-
ment. :
Amendment No. 63: Appropriates 8122,500
for "Operating Expenses, National Archives
and Records Service" instead of $145,000 as
proposed by the Senate.
Amendment No. 64: Reported in disagree-
ment.
Amendment Nos. 85 through 74: Strike
out amendments proposed by the Senate.
The managers on the part of the House and
Senate do not believe the additional appro-
priations and increased authorizations ? in-
cluded In said amendments for the Housing ?
and Home Finance Agency and Its constituent
agencies are necessary at this time. 110w-
ever, should housing amendments for cer-
tain new and expanded programs be enacted
in the present session of the Congress, or
should the need for additional funds 'be-
come acute because of unanticipated, in-
creases in programs, the Director of the 'Bu-
'reau of the Budget may accelerate apporilon-
, ments of funds presently available by mini-
, mum amounts pending the submission of .
supplemental estimates to the next session
of the Congremsi.
- -Amendment Noe. 75 and 76: Reported
disagreement.
CHAPTER 1/11
Department of the Interior
Amendment No. 77: ? Changes , chapter
,Munbet. ' . I ; ? ?,
? 'Amendment No. 78: Reported in dgagree-
? Amendment No. 79: Appropriates 81.200.000 ' ?.
for Bureau of Mines, Conservation and De-
velopment of Mineral Resources, instead of
$625,000 as proposed by the House and
$1,460,000 as proposed by the Senate. Of
the amount provided $1,000,000 is for con-
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:Approved Fo23N-twg,A@MX3t2itEppRKIP_814T-St0A15R000100180021-8
? IY I ritinity, methods at
piant anct for
' h.' r(441' ing,.lreflning, and all other
10t,O4at5ndby condition.
?tnt No 130',,,..Iteported in disagree-
Ac.le,ndr,i,,itt Wf"?Appropriates $750.000
',1( 1. 14th Construction,
ni.tekdii.45.000',as:proposed by the Rouse
md $100,000',4.4Air.41)0Seci by the Senate. Of
th ia amount' POVicled $6.000 is for the con-
trtictfon.,,,IfiliiivOthicilltiry spillway on the
,,larnes..ltivee'atAhe Dakota Luke National
?Wildlife Icer,p North Dakota.
Amer icnnOtt.,,No, '82:, Reported in disagree-
,
? .pepartMent of Agriculture
Amendinent *6. 83: Reported in disagree-
ment ?
' Jai
A leicerideF, ,Bicentenn
Commission
Arn en cinient. No. 84: Reported in disagree-
11? ent.
JJoAtOfl Nationat Historic Sites Commission
Amendment No. 85: Reported in disagree-
ment.
John Marshal/ Bicentennial Celebration
Commission
Amendment No. 84: Reported in disagree-
:lieut.
National Capital Planning Commission
Amendment No. 87: Strikes language in-
'rt ed by the Senate.
S nithsonian Institution
Amendment No. 88: Reported in disagree-
men'
Soo Locks Centennial Celebration
Commission
Amendment No. 89: Reported in disagree-
ment.
CHAPTErtt VIII
Department of Labor
nendigent No. 90: Changes chapter
number. - ?
Anielidinent No. 91: Appropriates $250.000
for "Salaries and expenses, Deice of the So-
inst,ead- of $110.000 as proposed by
the 'House and $303;800'.as propoeed by the
Senate
'Amendment No. 92: Reported in disagree-
ment. , ?
Amendment No:93: Reported in disagree-
Department of Health, Education, and
' Welfare
Amendment No. 94: Inserts heading.
Amendment No. 95: Reported in disagree-
ment
Amendment No. 98: Strikes appropriation
of $8,700 for "Salaries and expenses, Gal-
laudet College" proposed by the Senate.
Amendment?No.. 97: Inserts heading.
Amendment No,-98: Reported in disagree-
ment,
? Amendment,'No. 99: Strikes appropriation
of $220,000101' "salaries and expenses. How-
' ard TJnivereitY" proposed by the Senate.
Amendment No100: Appropriates $220,000
for "Sala:lee and 'expenses, White House
*Coeference-on EdUeationtt instead of $50,000
. proposed by the' Houaeand $238,000 as
proposed by'the Senate, however, the man-
gerfOxl the,part Of the House reiterate the
nouovieetoith, la House Report No. 1116,
thelegitiatiOn. which authorized the
White HOnee;Gonference on NducatiOn does
use Of Federal funds for
delegateS 74 the Con.
a.
fereitee, za,c1 will expect that the Department
secure an opinion. 04 this matter from the
Comptroller General before obligating any
funds for such purpose. If tiis opinion is
that the use of funds fof sUch purpose is not
so authorized, it will be expected that the
Director of the Bureau of the Budget will
impound $170,000 of the appropriation for
this item.
Amendment No. 101: Strikes appropria-
tions for 19 Public Health Service items
totaling $1,375,000 proposed by the Senate.
Amendment No. 102: Appropriates $1,190,-
000 for "Sanitary engineering activities" as
proposed by the Senate.
Amendment No. 103: Appropriates $250,000
for "Mental health activities" for the purpose
of carrying out the purposes of Public Law
182, approved July 28, 1955, as proposed by
the Senate.
Amendment No. 104: Reported in disagree-
ment for technical reasons. A motion will
be made to recede from disagreement to the
Senate amendment that proposed an appro-
priation of $60,000.000 for "Grants to Statee
for poliomyelitis vaccination" and concur
therein with an amendment to substitute
the sum of $30,000,000. The managers are
agreed that, if legislation is enacted which
will require more than 130,000,000 in fiscal
year 1956, the Director of the Bureau of the
Budget should apportion these funds on a
deficiency basis.
Amendment No. 105: Appropriates 4600,000
for "Construction of housing facilities for
animals" instead of *400.000 as proposed by
the House and 5685,280 as proposed by the
Senate. The language of this paragraph is
sufficiently broad to permit the Public Health
Service to handle the construction direct or
to arrange for contracts through the General
Services Administration. The managers will
expect the method to be employed which will
assure the earliest completion of the bulld-
ing.
CHAPTER IX
Public works
Atomic Energy Commission
Amendment No. 106: Changes chapter
number.
Amendment No. 107: Appropriates 4256,-
327,000 for Plant and Equipment insteed of
$163.577,000 as proposed by the House and
$270,800,000 as proposed by the Senate.
None of the amount appropriated is to be
used for construction of the new Reactor
Training School, Argonne National Labora-
tory, as proposed in the Budget.
Amendment No. 108: Deletes House lan-
guage.
Amendment No. 109: Reported in disagree-
ment.
Department of the Interior
? Amendments Nos. 110 through 112: Strike
headings and language inserted by the Sen-
ate.
The use of $240,000 of available funds /Or
completion of the Yellowtall-LOvell trans-
mission line is approved.
? Department of Defense?Civil Functions,
? Department of the Army
Amendment No. 113: Appropriates $4,e
551,014 for Rivers and Harbors and Flood
? Control Construction, General, as proposed
by the Senate,
CHAPTER X
Department of State
Amendment No. 114: Changes c
number.
Amendment No. 116: Appropriates
$1,970-
000 for "Salaries and expenses" instead
10163
$1.820,000 as proposed by the Souse And
$2,120.000 as proposed by the Sena,tx.
Amendment No. 110: Reported in disagree-
ment.
Amendment No. 117: Reported in disagree-
ment.
Amendment No. 118: Deletes language
proposed by the Senate.
Amendment No. 119: Deletes language pro- ?
posed by the Senate.
Amendment No. 120: Appropriates $75,000
for "Salaries and expenses, Internationar,d
Boundary and Water Commission, United,r':'
States and Mexico." as proposed by the Sen.-,
ate.
Department of Justice
Amendment No. 121: Deletes proposal of
Senate to appropriate $500,000 for "Build-
ings and Facilities."
United States Information Agency
Amendment No. 122: Appropriates $336,630 '
for "Salaries and expenses" instead of
$243,260 as proposed by the House and $430,-
000 as proposed by the Senate.
Fund,s appropriated- to the President
Amendment No. 123: Reported in disagree-
ment.
CHAPTICIt XI
Treasury?Post Office
Amendment No, 124: Changes chapter
number.
Amendment No. 125: Appropriates $7,000.-
000 for Operating Expenses, Coast Guard, as
proposed by the Senate Instead of 1,5,000,000
as proposed by the House.
Amendment No. 126: Inserts heading
Amendment No, 127: Reported in dis-
agreement.
Amendment No. 128: Reported in disagree-
ment.
CHAPTER XII
District of Columbia
Amendment No. 129: Changes chapter
number.
Amendment No. 130: Reported in die-
agreement.
Amendment No. 131: Reported In dis-
agreement.
cusPrzexiix
Legislative branch
Amendment No. 132: Inserts chapter
number.
Amendments Nos. 133 and 134: Insert
headings.
Amendment No. 135: Appropriates $185,835
for Contingent Expenses of the Senate. as
proposed by the Senate.
Amendment No. 136: Strikes out language
proposed by the Senate amending Section
1311, Public Law 683, Eighty-third Congress.
CRAM= XIV
Claims for damages, audited claims, and
ludgments
Amendment No. 197: Changes chapter
number.
Amendments Nos. 138 and 139: Appropri-
ate 44,117,523 as proposed by the Senate in-
stead of $5,343,888 as proposed by the
House; and insert reference to Senate Docue
meat,
=Ann xe
General provisfons
? Amendment No. 140: Inserts chapter,
Amendment No, 141: Inserts heading.
, Amendment No. 142: ?Reported in Ms=
'agreeMent.
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Approved For Release 2006/08/21 ? CIA-R,DP63T00245RP00100180021-8
cON(,RESSiONAL RECORD ?11017sE
;4":' Itel:orte.; in dis-
CANNON,
iiN TABER,
I:
JAmtr T- WHITTEN,
FRETI MARSHALL,
H CARL ANDEfisEN,
A. chapter it
Ps !Nei. H. ParwroN, Jr.,
ALBERT TiloiKAs,
PRANK T. Bow,
As to elmpter In
OLORGE MAHON,
HARRY R. SHErPARD.
ROBERT L. F Sur.
R B. WIGGLESWORTIT,
DIKETT P. RCRIVNER,
GERALD R. FORD, Jr.,
As to chapter IV
Orro E. PASSMAN,
J. VAUGHAN GARY,
R. n. WIGGLESWORTH,
As to chapter V:
GEORGE ANDREWS,
fleoRGE: MAHON,
Ivott D. FzirroN,
As to chapter VI:
ALBERT THOMAS,
SIDNEY R. YATES,
JOHN PHILLIPS,
As to chapter VII:
MICIIALT J. KIRWAN,
W. F. NORRP:11.,
BEN F. JENSEN,
AS to chantcr VIII:
JOHN E. FOGARTY,
A. M. FERNANDEZ,
T. MILLET BAND,
.1,s to chapter IX:
Loots C. ILdakoT,
Mictimez, J. Kirivux,
As to ch?ipter X:
JouN J. ROONEY,
PRINCF H. PRESTON, Jr.,
F. R. COUDERT, Jr.,
A% to cl,apier XI:
.1. VAXCHAN GARY,
OTTO E. PASSMAN,
GORDON CANFIELD,
As to chapters XII, XIII. XIV, and XV:
Louis C. RADAUT,
W. F. NORRELL,
WALT HORAN,
managers on the Part of the House.
CORRECTION OF RECORD
Mr. THOMSON of Wyoming. Mr.
Speaker, I ask unanimous consent that
my remarks on the floor of the House
yesterday, as they appear on page 10295
of the CONGRESSIONAL RECORD be COT-
recteci as follows: On line 20, page 10295,
strike out the words "do not.''
The SPEAKER. Is there objection to
the request of the gentleman from Wyo-
ming?
'I here was no objection.
EXTENSION OF REMARKS
By unanimous consent, permission to
extend remarks in the Appendix of the
REcosu, or to revise and extend remarks,
was granted to:
Mr, COOPER and to include a. report
from the Treasury Department with re-
spect to the tax treatment of cooper-
atives.
Mr. Vinson, and to include an address
made by Hon. DEWEY SHORT before the
Post-Graduate Medical Society at Hous-
ton, Tex.
Mr. PRIcE in five instances and in each
to include extraneous matter.
Mr. Mm.rvs in five imtanecs and in
each to include extraneous matter.
Mr. MuurEa, the remarks he expects
to make in Committee of the Whole
today and to include extraneous matter.
Mr. LANKFORD and to include an article.
Mr. SIKES in two instances and to in-
clude other material.
Mr. HAYS of Ohio in two Instances and
to include extraneous matter.
Mr. WALTER and to include an article.
Mr. MADDEN and to include a state-
ment.
Mr. Macro:mon in five instances and to
Include extraneous material.
Mr. FALLON. .
Mr. DEROUNIAN.
Mr. BOGGS.
Mr. Plummy in four instances.
Mr. Rzrcz of Tennessee (at the re-
quest of Mr. BROWN of Ohio) and include
certain material.
Mr. SAyLoR in three instances in each
to include extraneous matter.
Mr. Swum of Wisconsin in five in-
stances in each to include extraneous
matter.
Mr. RAMAN (at the request of Mr.
Aa ENDS).
Mr. LAIRD in five instances in each to
Include extraneous matter.
Mr. RIENLMAN in two instances in each
to include extraneous matter.
Mr. Maw of Nebraska.
Mr. BROWNSON and to include extra -
neous matter.
Mr. Pnuorr.
Mr. Urr and include extraneous
matter.
Mr. Pownt (at the request of Mr.
MaDors) in two instances and to include
extraneous matter.
Mr. PATM.AN, his remarks made in
Committee of the Whole and to include
extraneous matter.
Mr. HEBERT (at the request of Mr.
Mutrtx) and to Include extraneous mat-
ter.
Mr. litern (at the request of Mr. Mut.-
=I) and to include extraneous matter,
notwithstanding that It may exceed two
pages of the Itxcoaa and is estimated by
the Public Printer to cost $280.
Mrs. KELLY of New York (at the re-
quest of Mr. Zainocia) in six instances
and to include extraneous matter.
Mr. FLOOD (at the request of Mr. Ma-
ine/a) in two instances.
Mr. ZABLOC1U in two instances.
Mr. Prwr in five instances and to in-
clude extraneous matter.
Mr. MACK of Washington in five in-
stances and to include extraneous mat-
ter. ?
Mr. Vaxut to revise and extend his re-
marks made in Committee of the Whole.
Mr. THOMSON of Wyoming. ?
Mr. Done in two instances and to in-
clude extraneous matter.
Mr. TEAGUE of Texas..
Mr. McDonoucn.
SENATE BH.J..8 REFERRED
Bills of the Senate of the following
titles were taken from the Speaker's table
and, under the rule, referred as follows:
8.366. An acyor the relief of Bart Krij-
ger; to the Committee on the Judiciary.
S. 421. An act fo: the rc,,,.7 ,?c?
Lo the COrnsulto-e on
S.4:33. An act ior the relief De-
metrius Spanos; to the c?qua,i.tce All the
Judiciary.
8.912. An act to amend the Act of Ansa
23. 100, relating to a Uniform retirement
date for KillbOriZeci retirements of Pedei:..1
personnel, and the Forviirri Service Act of
1946, as amended; to the Committee on Post,
Office and Civil Service.
8. 1105. An act for the relief of Mrs. Lieie-
lotte Emilie Dailey, to the Committee on the
Judiciary.
S.1118. An act for the relief of Katherine
Lajimodiere (nee Schneeberger); to the
Committee on the Judiciary.
8.1125. An act for the relief of Stephen
Pod(); to the Committee on the Judiciary.
8.1228. An act for the relief of Soterios
Christopoulos; to the Committee on the
Judiciary.
5.1299. An act for the relief of Mrs. Es-
teni Rodriguez Estopinan de Withal; to the
Committee on the Judiciary.
S. 1348. An act for the relief of Anna
Jerrnan Bonito; to the Committee on the
Judiciary.
S.1357. An act for the relief of Ingeburg
Edith Stallings (nee Nitzkl); to the Commit-
tee on the Judiciary.
S.1594. An act for the relief of Dosinda.
Gonzalez Mendez; to the Committee on the
Judiciary.
S.1676. An act for the relief of Antonio
Domenico Narciso Ihanchl; to the Committte
On the Judiciary.
S.1682. An act for the relief of !dada Dcl
Carmen Intriago Martinez; to the Commit-
tee on the Judiciary.
8.1706. Ah act for the relief of Spyridon
Saintoufis and his wife Etrossini Saintouhs:
to the Committee on the Judiciaiy.
S.1732. An act for the relief of Panagio-
Us Nicolas Lidos and his wife, Antyro Pana-
glut's Lidos; to the Committee on the
Ju-
diciary.
8.1787 An act for the relief of Edith
Kalwies; to the Committee on the Judici-
ary.
S.1818. An act to limit the amount of land
on Federal irrigation projects which may
be exchanged under the act of August. 13,
1953; to the Committee on Interior and In-
ternal Affairs.
8.1882. An act for the relief of Constan-
tine Salmon; to the Committee on the Ju-
diciary.
S.1888. An act for the relief of Cesare
Nem to the Committee on the Judiciary.
S.1905. An act for the relief of Winston
Bros. Co. and the Utah Construction Co. and
the J. A. Terteling & Sons, Inc.; to the Corn-
mu i tee on the Judiciary.
5.1917. An act to authorize the construc-
tion within ()rand Teton National Park of
an alternate route to United States Highway
89, also numbered U. S. 187 and U. S. 28
and the conveyance thereof to the State of
Wyoming, and for other purposes; to the
Committee on Interior and Insular Affairs.
S. 1933. An act for the relief of Dr. Elpidlo
Dosado, Aurelia, Deanna, Elpidio, Jr., and
Ambrosio Dosado; to the Committee on the
Judiciary.
8.1972. An act for the relief of William
Theodore and Emily Senna. Saad; to the
Committee on the Judiciary.
6.1973. An act for the relief of Tonne N.
JIldeh; to the Committee on the Judiciary.
6:1983. An act for the relief of Myra Louise
Dew; to the Committee on the Judiciary.
6.2038. An wet for the relief of Rosa
Roppo: to the Committee on the Judiciary.
6.2053. An act for the relief of Ivan
Gerasko; to the Committee on the Judiciary.
S. 2080. An act to amend the act of March
3, 1901 (31 Stat. 1449). as amended, to incor-
porate in the Organic Act of the National
Bureau of Standards the authority to use the
working capital fund, and to permit certain
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