PRINTING AS A PUBLIC DOCUMENT A STATEMENT ON THE RECORD OF CONGRESS AND ACHIEVEMENTS OF THE REPUBLICAN ADMINISTRATION SINCE 1963

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP63T00245R000400220002-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 23, 2016
• Document Release Date: April 30, 2014
• Sequence Number: 2
• Publication Date: August 25, 1958
• Content Type: OPEN SOURCE

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1958 CONGRESSIONAL RECORD � SENATE
Mr. DOUGLAS. Will the Chair please
state the motion of the Senator from
Illinois?
The VICE PRESIDENT. The motion
of the Senator from Illinois is to recom-
mit the bill to the committee with in-
t structions to immediately report the bill
without the amendment. �
Mr. JOHNSON of Texas. Mr. Presi-
dent, a parliamentary inquiry.
The VICE PRESIDENT. The Senator
will state it.
Mr. JOHNSON of Texas. The motion
is debatable, is it not?
The VICE PRESIDENT. The motion
is debatable.
Mr. MORTON. Mr. President, has the
motion been tabled?
The VICE PRESIDENT. The motion
has not been tabled.
Mr. MORTON. Mr. President, I move
to reconsider the vote.
Mr. RUSSELL. Mr. President, that
motion is not in order.
Mr. KERR. A point of order, Mr.
President.
Mr. DIRKSEN. Mil. President, a par-
liamentary inquiry.
The VICE PRESIDENT. The motion
of the Senator from Kentucky is not in
order.
� Mr. JOHNSON of Texas. May we
have' order in the Chamber,' Mr. Presi-
dent?
- The VICE PRESIDENT. The Senate _
will be in order.
Mr. DOUGLAS. Mr. President�
The VICE PRESIDENT. The Senator
from Illinois.
� Mr. DOUGLAS. think this is the
quickest way to settle the matter. Let
us recommit the bill to the committee
with instructions immediately to report,
striking out the amendment of the Sen-
ator from Michigan; bring the bill back
before the Senate; vote the bill up or
down; and go home.
Mr. McNAMARA. Mr. President, a
parliamentary inquiry.
The VICE PRESIDENT. The Senator
will state it.
Mr. McNAMARA. Does it not require
unanimous consent to consider the bill;
otherwise, the bill would have to lay over
for 1 day?
The VICE PRESIDENT. If the bill is
reported from the committee, the bill
must lie over 1 day unless unanimous
consent is granted to proceed to the con-
sideration of the bill.
Mr. DOUGLAS. M. President�
Mr. McNAMARA. Mr. President, if I
correctly understand the parliamentary
situation, if the bill were reported to the
Senate, it would require unanimous con-
sent for immediate consideration; other-
wise, the bill would have to lay over 1
day. -
The VICE PRESIDENT. The Senator
is correct.
Mr. JOHNSON of Texas. But all we
would have to do, Mr. President, is to
make a motion to adjourn 10 minutes,
if agreed to, and the Senate could then
act on the bill. It would then be an-
other legislative day, would it not, Mr.
President?
Mr. DOUGLAS. Mr. President�
The VICE PRESIDENT. The Senator
from Illinois.
Mr. DOUGLAS. I should like to defer
my inquiry until there is a reply to 'the
inquiry of the Senator from Texas.
The VICE PRESIDENT. The state-
ment of the Senator from Texas is cor-
rect, since the Senate is in the legislative
day of August 23.
Mr. DOUGLAS. A further parlia-
mentary inquiry, Mr. President.
The VICE PRESIDENT. The Senator
will state it.
Mr. DOUGLAS. If the motion to re-
commit to the Committee on Public
WorkS with instructions to immediately
report the bill to the Senate, in 5 or 10
minutes, with the amendment of the
Senator from Michigan omitted, were
-agreed to, would it then be in order
to move that the Senate adjourn for 10
minutes; and, if the Senate adjourned,
when the Senate reconvened, would
there be a new legislative day?
The VICE PRESIDENT. The Senator,
is correct; it would be a new legislative
day.
Mr. PROXMIRE. Mr. President�
The VICE PRESIDENT. The Senator
from Wisconsin.
Mr. PROXMIRE. Mr. President, I
deeply appreciate the position taken by
the Senator from Illinois. I do not
blame him one bit. However, I mean
what I say�and I never meant anything
more sincerely�when I say we have a
big case to make tonight. I mean we
have a big case to make. I have 756
pages of the RECORD to read, much of
which still has to be read. Several pages
of the RECORD have been read.
I have the floor now and I am ready
, to read. I want all Senators to know, if
they wish to stay and listen, there is a
� lot of very good information to be pre-
sented. If Senators do not wish to stay,
if they come back tomorrow night at this
time I will still be here reading.'
Mi. KNOWLAND. Mr. President, will
'the Senator yield so that I may propound
a unanimous consent request, with the
understanding that the Senator will not
lose his right to the floor?
Mr. PROXMIRE. Mr. President, I ask
unanimous consent that I may yield to
the distinguished minority leader with-
out losing my right to the floor.
The VICE PRESIDENT. Is there ob-
jection to the request of the Senator
from Wisconsin? The Chair hears none,
and it is so ordered.
0
PRINTING AS A PUBLIC DOCUMENT,
A STATEMENT ON THE RECORD
OF CONGRESS AND ACHIEVE-
MENTS OF THE REPUBLICAN AD-
MINISTRATION SINCE 1953
Mr. ICNOWLAND. Mr. President,' as
has been customary for a number of
years, bosh majority and minority
leaders of the Senate, at the close of a
Congress, put into the CONGRESSIONAL
'RECORD and have printed as Senate docu-
ments their respective statements on
the record of Congress.
At this time, I ask unanimous consent
to have printed Such a statement for the
minority side in the CONGRESSIONAL
RECORD, together with a review of the
achievements of the Republican admin-
18065
istration since 1953. I also request that,
with the consent of the Senate, this
statement and the review of achieve-
ments be printed, with any necessary
revisions and corrections after the ad-
journment of the Congress, as a Senate
document.
The VICE PRESIDENT. Without ob-
jection, it is so ordered.
REPUBLICAN REPORT ON THE 85TH CONGRESS,
TOGETHER WITH ACHIEVEMENTS OF THE RE-
PUBLICAN ADMINISTRATION, JANUARY 1953 TO
AUGUST 1958
(By Senator WILLIAM F. KNOWLAND, Of
California, minority leader)
REPUBLICAN REVIEW OF THE 85TH CONGRESS
(JANUARY 3, 1957-AUGVST 24, 1958)
The 85th Congress
, In our constitutional system of govern-
ment, our two major political parties�Re-
publican and Democrat�are dominant
throughout the Nation. They provide the
main machinery for the election of Senators
and Members of the House of Representa-
tives to serve in each Congress.
The political party which elects the greater
number of Senators gains the power to or-
ganize the Senate; the party electing the
greater number of Members in the House
has the power to organize the House of
Representatives. In the national election of
1956, the Democratic Party elected more
Senators and more Representatives than did
Republicans, although the same election re-
turned President Eisenhower, a Republican;
to the White House for a second term.
The success of the Democrats in the 1956
congressional elections gave them the power
to organize the 85th Congress- in January
1957. They gained the status of the "ma-
jority" in both Houses of Congress. Thus,
they organized the 85th Congress. In this
Congress, Republican Members are called the
"minority."
History will judge the 85th Congress not
by the quantity but the quality of its legis-
lative productivity.
In its two sessions beginning January 3,
1957, and ending August 24, 1958, the 85th
Congress accomplished a substantial volume
of legislative business.
The present report deals only with the
highlights, or matters of significant public
business, selected from the major public
laws and resolutions enacted by the Congress.
Powers Stemming From Control of
Congress
The power to control a Congress is very
important. It means that the Democrats
elect the chairman and the majoriyt mem-
bership of all the powerful committees' in
the Senate and House. All bills and resolu-
tions introduced in either House of Congress
are referred to their respective committees.
These committees investigate and study the
subject matter of such of these bills as they
select; they hold hearings upon them; they
shape up the language and provisions of the
legislation; and finally they may pigeonhole
bills or report them to their respective
Houses with or without recommendations.
Only then does the whole Senate ,or House
take action on the proposed legislation. It
can be seen from this that control over the
committees of Congress carries with it sub-
stantial power to shape the laws which gov-
ern the Nation's citizens and their interests.
Control of Congress also includes the power
to control the legislative business on the
floors of both Houses. Such control deter-
mines what measures will be called up for
consideration and the order of the priority,
subject to the rules of each House.
� For &crimple the decision to motion up
Alaska statehood but to allow Hawaii state-
hood to remain on the Senate Calendar was
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18066 CONGRESSIONAL RECORD � SENATE
a decision Of the policy Committee of the
Democrats.
� Legislation Is Generally a Compromise
This does not mean that the majority
party can impose its absolute will on the
whole Congress. Legislation in Congress is
more often the result of compromise. The
compromise is rarely between two tightly
organized political parties. Members of both
Houses are men of conviction and they vote
according to what they believe IS best for
the national interest as they see it. They
may be influenced by political party princi-
ples and other interests, all of which enter
into the compromise and determine the re-
sulting legislation. On numerous occasions
there are what can be termed "party line"
votes, where the majority of Democrats vote
on one side and the majority of Republicans
oppose them; but even here there will be
some "crossing of party lines" by individual
Members. Moreover, there are some great
questions of public policy, like civil rights,
labor-management relations, and foreign aid,
which cut deeply into each political party
and produce party splits or divisions. This
is typical of almost every Congress no matter
which party controls it.
85th Congress Reflects Political Party
Principles
' But control of the machinery of Congress
does give the majority more power and op-
portunity to impress legislation with its
party philosophy and principles. This was
evident in the performance of the 85th 'Con-
gress. In general, Democrats pressed for
greater Federal spending, for the continued
expansion of Federal Government powers and
activities, for inflationary policies, for fur-
ther expansion of Federal electric power and
other public projects, for Federal subsidies
and benefits of all kinds to individuals,
States, and localities, regardless of the dan-
gers of inflation, or the encroachment by the
Federal Government on the functions of
States and local governments, private busi-
ness, and individuals. In the 85th Congress,
too, Democrats were reluctant to remedy
abuses by legislation in cases where the leg-
islation ,might meet with disfavor among
certain groups from which the Democratic
Party hopes to draw political strength, as in
the opposition of New Deal Democrats to
effective labor legislation.
Republicans in the 85th Congress, on the
other hand, generally voted on lines to curb
Federal spending; to restrain, the eXpansion
of Federal Government activities except
where there was a clear necessity for it; to
avoid inflation by maintaining the value of
the dollar and by keeping the expansion of
money and credit within moderate bounds;
to permit the State and local governments
to share with the Federal Government in
power and other public projects on a part-
nership basis rather than have the Federal
Government do the whole job; and to dis-
courage as much as possible Federal Govern-
ment interference in the lives of individuals
or with the activities of private enterprise.
These attitudes stem from the philosophy
and historic principles of the Republican
Party.
In general too, Republicans in Congress
sought to support the Republican adminis-
- tration of President Eisenhower while Demo-
crats, with an eye to the capture of ,the
White House in 1960, recognized no such
obligation, except in foreign affairs. While
the official Democratic leadership cooperated
in many foreign policy issues, there was
much carping criticism by Democrats from
the sidelines.
It is only against this background of our
Republican form of Government, our politi-
cal party system, and the significance of
control over the machinery of Congress that
the performance of our two major parties in
the 85th Congress can be fairly evaluated.
Highlights in the record of the 85th Congress
The 85th Congress began in January 1957
on a note of economy. It closed its second
session on August 24, 1958, with an upward
revision of the Federal debt limit to $285
billion.
This change from economy to heavy spend-
ing resulted in part from the Russian
launching of Sputnik I which led to great
concern over the state of American tech-
nology, scientific education, and national de-
fense. This concern was translated into
larger expenditures in many fields, including
the largest peacetime military spending pro-
gram in history.
However, a large part of the spending re-
flected the Democratic Party's historic cure
for economic recession�the enlargement of
Federal Government activities and obliga-
tions. Democrats who control both Houses of
Congress unleashed a barrage of spending
bills, tax cut proposals, and public works
plans which were strongly reminiscent of the
New Deal. Bills introduced in the Senate
alone would have committed the Federal
Government to the spending of an extra
$43.7 billion in the next 5 years with the
comparable House figure much larger. The
money for such an extravaganza would have
had to come from Government borrowing
(causing dangerous inflation) or from in-
creased taxes on our already burdened pop-
ulation. Carrying financial recklessness one
step farther, Senate New Deal Democrats
proposed to reduce taxes by $6.2 billion.
Healthy Economic Progress Resumed
While Republicans in Congress resisted
these attempts to expand Federal Govern-
ment activities and launch unnecessary
spending schemes, the Republican admin-
istration took More than 50 constructive
steps to stimulate the economy and provide
more jobs. Relieved of political pressure to
spend its way out of the recession, Congress
then supplemented the administration's ef-
;orts with legislation to spur the economy
and meet the Nation's legitimate needs.
Housing construction was stimulated; sound
river, harbor, and flood-control projects were
approved; water resource programs were ex-
panded; unemployment compensation was
extended and supported with Federal aids;
defense programs were accelerated; taxes on
the transportation of goods were lowered;
the Small� Business Administration was
made permanent and small business enter-
prises were helped by tax revisions; educa-
tion and welfare aids were enacted, and
other measures offsetting recession were ap-
proved.
As the 85th Congress drew to a close, the
economy took 'a healthy upturn with em-
ployment-rising, business improving, individ-
ual income increasing, and personal savings
reaching an all-time. high. The Republican
Party principle by which the Federal Gov-
ernment moderately supplements but does
not supplant the operations of States, local
governments, and private enterprises again
proved to be the soundest means for resum-
ing balanced economic progress.
Other domestic affairs
\ Safeguarding Farm Progress and Farmers'
Freedom
In the course of the session, Democrats
sponsored measures to freeze farm price sup-
ports and impose further restrictions and
controls on farmers. Republicans in both
Houses resisted these measures and when
their opposition could not prevent the pas-
sage of the legislation freezing supports, the
President vetoed it. Strong Republican op-
position successfully prevented Passage of
another farm bill which,- would have ex-
panded the acreage reserve program and
production controls on milk and feed grains.
Congress, toward the end of the session, ex-
tended the Agricultural Trade Development
August 25
and Assistance Act, the successful program
originally launched by Republicans to dis-
pose of farm surpluses abroad. Thwarted
in its efforts to scuttle the Republican farm
program which has greatly improved the
farm economy, the Democratic leadership
finally permitted passage of a bill making
moderate improvements in Government pro-
grams and price supports. The result points
to further gains in farm income, farm living
conditions, and more freedom for the
farmers.
Labor. and Management
Investigations of the Senate (McClellan)
Select ComiMttee on Improper Activities in
the Labor or Management Field exposed
such shocking abuses in sections of the
organized labor movement that remedial
legislation was finperative for the protection
of rank and file union members. This
proved a poser for the Democratic-controlled
85th Congress. Their dilemma was how to
satisfy outraged public opinion and union
members who were victimized by many un-
scrupulous union leaders and .yet not offend
the powerful labor leaders who furnished
political strength to the Democratic party.
�� S. 2888, a mild bill for registration, report-
ing, and disclosure of employee welfare and
pension plans, was offered to meet this di-
lemma. It gave the appearance of doing
something to protect employees while
actually doing very little to safeguard wel-
fare and pension funds and nothing at all
about other abuses in the labor-management
field. But while Democrats in the Senate
strongly rejected all Republican attempts to
give union members stronger protection
against the real- abuses in the labor move-
ment, they were finally forced to come f or-
Ward with a second bill (S. 3974) to accom-
plish that purpose. This bill was so in-
adequate to the need that Secretary of Labor
James P. Mitchell, in a public statement,
voiced his conviction that the bill "Would
provide- only illusory protection to trade
union members and to the public, as well as
being almost impossible to administer."
Republican Members of. the Senate offered
many amendments to secure more freedom
and democratic rights for rank and file
union members, but lacking sufficient votes
to override strong Democratic majorities,
Republicans saW their amendments voted
down. (See provisions of- the bill, section
on labor and management.)
Sent over to the House, the bill remained
In the hands of the Democratic Speaker for
over 40 days until public pressure forced its
referral to the House Education and Labor
Committee. This committee voted against
� consideration of the bill. Notwithstanding
that vote, the House Democratic leadership
brought the bill to the floor under the dras-
tic procedure of suspension of� the rules
which allowed no amendments practically
making defeat of the bill certain. It was
defeated.
The House went on to pass a companion
bill to S. 2888 which, after being recon-
ciled with the Senate bill in conference, was
passed by both Houses and approved by the
President.
National Defense and Mutual Security
The Russian launching of Sputnik I
spurred a drive to accelerate and enlarge na-
tional defense programs and to improve and
strengthen the military services. Final ap-
propriations for the Department of Defense
totaled more than $40 billion for fiscal year
1959, the largest peacetime defense appro-
priation in the history of the country. This
was in addition to increased expenditures in
many other fields related tonational defense.
The total was further enlarged by appro-
priations of more than 3 billion dollars for
mutual security, the military and economic
aid given by the United States to allies and
� friends abroad. In this connection, Repub-
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1958 CONGRESSIONAL RECORD � SENATE
licans had to put up a strong fight to retain
provisions of existing law preventing the
extension of economic and financial aid to
countries that ship war material to the
Soviet Union and its satellites.
Concerned over weaknesses in defense ad-
ministration and operations, Congress passed
the Defense Reorganization Act improving
efficiency, providing flexibility, and establish-
ing clearer lines of command authority. By
other acts, Congress took many steps to
make the military service more attractive as
a career. It also raised the mental and
a. physical qualifications for induction into the
Armed Forces to help in obtaining more per-
'sonnel with leadership and technical abil-
ities.
Missiles and Space
� Clearly recognizing the implications to na-
tional defense, to the national interest, and
to the peace of mankind of explorations in
'outer space, Congress established an inde-,
pendent agency�the National Aeronautics
and Space Administration�under -civilian
direction to plari and guide space activities.
This was supplemented by a nine-member
National Aeronautics and Space Council,
made up of heads of government depart-
inents and agencies and private individuals,
to plan a comprehensive space program and
coordinate the work of Federal agencies deal-
ing with space activities. In addition, each
House of Congress set up space committees
for surveillance of space problems and.
activities.
activities. Approximately $500 million in all
was provided for space programs in the Fed-
eral Government for the 1959 fiscal year.
By a concurrent resolution, Congress went
on record favoring international agree-
ments for the development and use of outer
space for the peace and benefit of mankind.
Congress acted promptly to accelerate high
priority missile programs and provided new
funds for the purpose for use in 1958. The
1959 program for military missiles approxi-
mates $6.7 billion and is under the control
of the Defense Department.
Atomic Energy
In addition to other legislation in the field
of atomic energy, Congress took two signifi-
cant steps to advance President Eisenhower's
historic atoms-for-peace and atoms-for-
security proposals. The Senate consented to
the ratification of the treaty for the Statute
of the International Atomic Energy Agency
by which the United States participates with
'79 other nations in developing atomic energy
for peaceful purposes. The Congress also
enacted legislation to permit the United
States to share atomic information with its
allies, subject to certain safeguards in the
national interest.
Democratic attempts were made to au-
thorize additional expenditures in the atomic
enegy field tWice as large as the President
� requested, but such unnecessary spending
was not sustained in the final appropriations
for such programs.
Public Works and Natural Resources
Public works is one field where the dif-
ferences between our two major parties show
up quite clearly. Driven by their desire to
spend their way out of the recession, Demo-
crats pressed for the enactment of the com-
munity facilities bill providing for loans to
aid cities and towns in building public works.
The Senate measure called for $1 billion for
this purpose and the House raised the figure
to $2 billion. Fortunately, enough economy-
� minded Democrats joined with a strong Re-
publican vote to defeat the greatly expanded
measure. Another Democratic-sponsored bill
� would have set up an Area Redevelopment
Administration to loan millions of dollars
to aid depressed areas, No economic or
business standards were set up for such
loans and no attempt was made to get at
the real causes.for depressed areas. The bill
was a plain attempt to subsidize certain
industries and areas at the expense of others
and could have led to loans on the basis of
favoritiSm and political expediency. An-
other measure sought to expand Federal con-
trol of public power by permitting the TVA
to build new powerplants with money from
bonds instead of coming to Congress for
funds. Strong Republican voting in the
Senate and House helped to defeat such bills
as these on the two principles of curbing
Federal spending and restraining the indis-
criminate expansion of the Federal Govern-
ment into fields of State, local, and private
'concern.
The Omnibus Act of 1958 for rivers, har-
bors, flood control, and water supply finally
became law after two earlier acts were vetoed,
This bill, carrying authorizations of $1,556,-
230,500, covers hundreds of individual
projects located in every State of the Nation.
The Congress also approved the Massa-
chusetts-Connecticut flobd-control -compact
which provides for projects to lessen the
danger of floods in that area. In addition,
Congress provided for a large number of other
flood and water conservation projects in
many other areas of the country. The 5-year
program for the development of the Nation's
water resources initiated by the Republican
administration in 1954 was carried forward -
with some 461 new starts made to bring the
total of expenditures close to $9 billion for the
5 year's. Mineral resources and stabiliza-
tion programs were approved.
Congress also authorized $3.4 billion for
the long-range national highway building
program, and $10 million toward the comple-
tion of the Inter-American Highway. ,
Congress rejected the lease-purchase
program for private construction of public
buildings which would have saved millions
of dollars to taxpayers. But taxpayers will
save an estimated $500 Million by Congress'
refusal to approve a Democratic-sponsored
attempt to have the Federal Government
build, Hells 'Canyon Dam. Federal construc-
tion of this dam has been rejected many
times since 1950 in favor of private construc-
tion which is already underway.
Personal and Public Welfare
The Congress reenacted the impacted area
school bill (Public Law 815 and 874, 81st
Congress) and amended the law to make
permanent the program for children of per-
sons who reside and work on Federal prop-
erty. The program was extended for � 3
years to June 30, 1961. In approving the
pleasure, the President stated he did so "de-
spite serious reservations"; that while it was
clear Federal responsibility existed to help
local communities meet educational expenses
for children whose parents live and work on
tax exempted Federal property, Federal aid
should not be 'pernianently continued for
children whose parents work on Federal
property but live in the local community in
much the same- circumstances as other
workers.
In response to the President's request for
enactment of a 4-year education program,
including scholarships to help develop
scientific and technically trained persons,
Congress extended the scope of the bill, to
include fellowships, loans, and State grants.
It did not relate the scholarships to science.
The Congress also enacted other legislation to
further education, including out-service
training for Federal employees.
In the field of public health, Congress ex-
tended the Hospital Survey and Construction
Act for 3 years and expanded its sc,ope to
include diagnostic centers, hospitals. for the
chronically ill, rehabilitation centers, and
nursing homes. It also provided Other loans
and grants for hospitals and medical and
dental training facilities. Congress voted
more funds .for cancer research than can be
efficiently used over the next fiscal year.
Grants in aid totaling $1 billion were author-
18067
ized to train public health specialists, tech- -
nicians, and administrators.
In addition to the enactment of a $1.8 bil-
lion housing program designed to encourage
the building of an estimated 200,000 homes,
Congress enacted another law to hasten slum
clearance and to construct public and college
housing. Over strong Republican opposition,
Democrats in Congress extended the benefits
of public housing from low-income people to
the middle-income group�nullifying the
principle on which public housing is based.
In response to the President's request, Con-
gress provided for.the extension of unemploy-
ment compensation in the Federal-State sys-
tem and retained the existing formula for
such payments despite a Democratic-spon-
sored attempt to shift_ the whole burden to
the Federal Government.
Congress, in its closing days, enacted a bill '
to increase social security payments by 7
percent, raise the taxable wage base from
$4,200 to $4,800, increase payroll taxes, and
Increase the maximum family benefits to
$254 a month.
Veterans
Among the many laws enacted for the bene-
fit of veterans were the increase of 10 percent
in compensation for veterans with service-
connected disabilities, and in alowances for
dependents of veterans who are 50 percent
or more disabled; increases in pensions to
war widows; additional housing benefits for
veterans; and an appropriation of $25 million
to make additional unemployment compen-
sation payments to veterans.
Government and Civil Service
Spearheaded by Republicans, Congress
made the most significant advance in the
field of civil rights in 80 years by the enact-
ment of the Civil Rights Act of 1957, which
is basically designed to protect the Negroes'
right to vote.
After man ir years Congress finally made it
possible for Alaska to become a State, but
ignored the claims of Hawaii to statehood.
Pay increases for postal workers, classified
Federal employees, and unemployment com-
pensation for Federal workers were voted.
In addition to passing over statehood for
Hawaii, Congress took no action on home
rule for the District of Columbia; no action
to relieve the overcrowded dockets of Federal
courts by provision of additional judges; no .
action on the President's urgent request to
clarify the Constitution on the question of
Presidential inability; and no action to meet
the need for more effective laws on lobbying
and Federal elections.
Foreign Affairs
On Several occasions the 85th Congress
had occasion to deal with important matters
in the field of foreign affairs. Such measures
were strongly supported 'toy bipartisan action.
Middle East Resolution -
During the Middle East crisis of January
1957, President Eisenhower asked for au-
thority to use American Armed Forces to
assist any Middle East nation requesting help
against Communist aggression. A few Demo-
.crats in the Senate delayed action for almost
2 months while they vigorously criticized
the administration and called for an investi-
gation of its foreign policies, t The resolution
(referred to as the Eisenhower doctrine) wap
ultimately passed by overwhelming vote.
The policy investigation continued until
July but produced no committee recom-
mendations�a fact carrying implications
that the Democratic attack was made largely
for political effect. During a second Middle
East crisis in July 1958 when ,the President
responded to Lebanon's request for troops
to help preserve its independence, similar
attacks were made by some Democrats
prominent in the field of foreign relations.
Nonetheless, the administration acted vigor-
ously to defend small nations, to restrain ag-
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18068 CONGRESSIONAL RECORD � SENATE August 25
gressive communism in the Middle East.
and to press in the United Nations for inter-
national measures to maintain the peace.
Condemnation of Soviet Repression and
Brutality
In joint resolutions, under bipartisan
sponsorship, Congress severely condemned
Russian repression and brutality in Hungary,
and expressed "the deep sense of indigna-
tion" of the American people on the execu-
tion by the Communist regime of �former
Hungarian Premier Imre Nagy and his
colleagues.
United Nations Police Force
The Senate twice passed resolutions fa-
voring the creation of a permanent United
Nations police force.
Atoms-for-Peace and Peaceful Use of Outer
Space
By Senate and House action, two signifi-
cant steps were taken to advance President
Eisenhower's historic 'atoms-for-peace pro-
posal. These were approval of American
participation in the Statute of the Interna-
tional Atomic Energy Agency designed to
advance the peaceful uses of atomic energy,
and authorization under proper safeguards
of the exchange of atomic information'and
materials with-our allies.
Congress also went on record favoring in-
ternational action for peaceful exploration
and use of -uter space.
Mutual Security �
Collective,security having become vital to
the free world's resistance to Communist
aggression, Congress continued to appropri-
ate mutual security funds in 1957 and 1958.
The act of .1957 made two important inno-
vations. First, economic aid, which up to
then consisted largely of gifts, was placed
.on a repayable basis through the creation
of a development loan fund. Second, the
definition of "defense support" was tight-
ened to preclude the use of these dollars for
any other purpose than to help friendly
countries keep a maximum ainount of men
under arms as a guarantee of protection.
Although sharp cuts in mutual security
funds were threatened in the appropriation
act for fiscal 1959, the critical situation in
the Middle East helped to induce Congress
to grant funds substantially meeting the
President's request. �
Immigration
In the closing days of the first session,
Congress enacted a bill of limited scope in
the field of immigration, in place of the
comprehensive program recommended by
the President. The bill affected an esti-
mated 60,000 aliens, providing relief in hard-
ship cases and reviving 18,000 visas lost
when the Refugee Relief Act expired in 1956.
By another act it was made possible for
some 30,000 Hungarian refugees to become
permanent residents of the United States.
Section-by-section details of the record of
the 85th Congress follow:
Agriculture
(Republican agricultural policies�de-
signed to return a greater measure of free-
dom to American farmers while protecting
their incomehad some rough sledding in
the Democratielcontrolled 85th Congress.
But even without full congressional support
and implementation those freedom policies �
began to bear fruit in such forms as increases
In farm income, assets, ownership, land
value, and improved farm home living.)
1 Attacks on Soil Bank Program
In the first session of this Congress there
was a serious danger that a Democratic ma-
jority in the House would end prematurely
the acreage reserve part of the Republican-
sponsored Soil Bank program. The House
did in fact vote 192 to 187 to kill the acreage
reserve after 1957 crops. Of those who voted
to kill the acreage reserve, 154 were Demo-
crats and 38 were Republicans. Opposed to
the sudden move were 141 Republicans and
46 Democrats. Fortunately for America's
-farmers, the House later reversed its position
when it approved a Senate-House compro-
mise agricultural appropriations bill provid-
ing for continuation of the acreage reserve
for most 1958 plantings, thus protecting
farmers by an orderly close of the temporary
program.
Also in the first session, Congress 'failed to
protect the best interest of the Nation's c6rn
growers when Democratic majorities in both
the House and the Senate defeated several
Republican-sponsored bills designed to head
off overproduction by setting more realistic
acreage restrictions and encouraging partici-
pation in the soil bank.
President Vetoes Unrealistic Democratic-
Sponsored Farm Bill
Early in the second session the Democratic-
controlled Congress met a Presidential veto
when it attempted to thwart the Republican
farm program by freezing farm supports at
1957,1evels.
The next major attack against Republican
farm freedom policies came when House
Democrats controlling important committees
forced to the floor a farm bill which would
have imposed more restrictions on farmers
and cost billions of -dollars. This bill (H. R.
12954) would have expanded the area of pro-
duction controls to milk and feed grains.
It authorized an acreage reserve program for
corn and .grain sorghums, although agricul-
tural appropriations legislation just passed
provided no- funds' for a 1959 acreage reserve
program. The bill would have resulted in
higher consumer costs for milk and bread.
After Republican Representatives and the
administration pointed out these and other
faults', the House refused 214 to 171 even
to debate the measure. Voting to kill the
bill were 162 Republicans and 52 Democrats.
Voting to consider the catchall measure were
150 Democrats and 21 Republicans.
Congress,-passed a 3-year extension of the
special school milk program just in time
to keep the program from expiring and deny-
ing milk to \children in summer camps,
schools, and other nonprofit child-care ac-
tivities. Extension had been delayed because
the popular milk program had been included
as a sweetener in the Democratic omnibus
farm bill.
Another sweetener in the bill didn't fare
as well, but eventually also won separate
House consideration and approval. That was
extension of the Agricultural -Trade Develop-
ment and Assistance Act, originally passed
by the Republican 83d Congress for the
double purpose of disposing of American
farm surpluses and fostering sound foreign
relations. This successful act expired June
30, and wasn't reinstated by Congress until
the very end of the session.
--pasage under suspended rules permitting no
amendments. The House rightly refused to
accept it.
After still further delay that made it ap-
pear no general farm bill would be enacted,
House Demociats in key positions relented
and, finally brought 'out another version of
the bill more nearly in line with Senate pro-
visions and Republican administration rec-
ommendations.
This bill won final passage. Although it
abandons part- of the proposed principle of
gearing price supports to market prices, it
permits lowering .of support floors as a per-
centage of parity and allows more freedom to
plant. Importantly, it also will eliminate
escalator clauses for cotton, rice, and pos-
sibly corn.
Republican Farm Program Yields Beneficial
Results
Progress toward Republican farm freedom �
goals was slowed but not halted by such
Democratic foot dragging. Even with only
partial congressional support, those freedom
policies have begun to show results in such
forms as (1) a 22-percent gain in realized net
farm income in the . first half of 1958 over
the same period) in 1957; (2) total income
per person on farms at a new high record in
1957; (3) farm ownership at a record high
and farm land values at an all-time high in
1957; (4) cash receipts from farm marketings
in the first half of 1958 at 11 percent above
the similar 1957 period, with prices of farm
products averaging 8 percent higher and the
volume of marketings up 3 percent; and (5)
the best farm living conditions in history in
terms of better :homes with more con-
veniences.
Atomic Energy at Home and Abroad
(Republican policies of atoms-for-peace
and free world security were supported by
the 85th Congress. Some Democratic pro-
posals tended backward toward Government
monopoly and unnecessary spending. But
by and large Republican atomic progress with
freedom was advanced.)
The two most significant congressional
accomplishments in the field were consent
to the ratification in the first session of the
statute of the International Atomic Energy
Agency and passage in the second session of
legislation- permitting the United States to
share atomic military information and ma-
terials with allied nations. Both accom-
plishments fulfilled Presidential requests and
advanced the use of the atom for peace and
security.
International Atomic Energy Agency
The statute of the International Atomic
Energy Agency, a treaty signed by the United
States anal 79 other nations, grew out of
President Eisenhower's historic atoms-for-
peace proposal at the United Nations in De-
cember 1953. The agency is designed to
advance peaceful uses of atomic energy and
its application to industry, agriculture, and
medicine.
Cooperation With Military Allies
The new law permitting, subject to cer-
tain conditions, greater exchange of atomic
Information and materials with military al-
lies was requested by the President as an
outgrowth of urgent free world discussions
following the launching of the first Russian
earth satellite last October. Its major effect
Is to lower substantially but selectively the
walls of secrecy between the United States
and its allies on nuclear weapons develop-
ment. Congress wisely added safeguards to
the President's recommendations to be sure
that Congress would have veto power over
exchange agreements and that the legisla-
tion wouldn't have the effect of creating
new atomic powers among nations.
New Farm Bill Aids Farmers
-The rejection of H. R. 12954 left a much
more workable Senate bill (S. 4071) as the
major farm bill pending before the Congress.
This bill sought to make changes in Gov-
ernment programs for cotton, rice, corn,
and feed grains, commodities generally rec-
ognized as having the most serious problems.
It incorporated the principle of gearing price
supports to average market prices down to
certain income-protecting limits. It also
sought to give growers more freedom to plant
by setting more realistic acreage allotments,
eliminating allotments entirely in the case
of corn.
Although this bill was reported June 28
this year, it didn't teach the Senate floor for
action until July 23, where it was amended
and passed on July 25.
The House Agriculture Committee offered
a severely amended version of the bill for''
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1958 CONGRESSIONAL RECORD � SENATE 18069
Euratom.
Another significant congressional accom-
plishment in the second session was passage
of legislation approving a preliminary agree-
ment between the United States and the
six-nation European Atomic Energy Com-
munity (Euratom). The plan calls for the
construction of 6 nuclear-power reactors to
produce 1 million kilowatts of electricity
and to cost an estimated $350 million, of
which $135 million would be loaned by 'our
The Postal Policy Act of 1958 represented
Export-Import Bank. Congress authorized
the culmination of several years of effort
an initial appropriation of $3 million toward,_
so, a projected $50 million in outright grants by the Republican Administration to obtain
congressional approval of an increase in
to be matched by Euratom for research and
postal rates to offset evermounting deficits.
development. It also authorized the sale
or lease of 30,000 kilograms of enriched
(The administration, meanwhile, had mod-
ernized the Post Office Department, making
effective use of mangament practices suc-
cessfully developed by private industry.)
These deficits were due to the more than
doubled costs of postal service over the past
25 years, during which period postal volume
had tripled; and except for parcel post, rates
remained at levels that were entirely in-
adequate in view of increased costs.
This legislation also provided an over-all
10 percent increase in pay for 500,000 postal
workers, retroactive to January 1, 1958.
not have authority to deny a passport be-
cause of a citizen's, beliefs or associations.
He also sought clarification of authority to
prevent Americans from using passports for
travel to areas "where their presence would
conflict with our foreign 'policy objectives
or be imimical to the security of the United
States." The Congress took no action on
these recommendations.
Postal Rate and Postal Pay Increases
Appropriations for Atomic Progress
In the second session, the Congress au-
thorized an additional $386,679,000 for the
Atomic Energy Conimission's construction
program.
When it came to fiscal 1959 appropriations
for AEC, Congress appropriated $2,647,335,-
000.
These appropriations, added to the $2.32
billion in the first session appropriations'
bill, plus earlier appropriations and other
sums, helped provide a national and free
World program for harnessing the elemental
forces of the universe for freedom's defense
and for the advancement of human welfare
in many peaceful pursuits.
Government and civil service
(There were notable advances in keeping
with- Republican principles, both through
legislation and Administration action, in
promoting increased economy and efficiency
in Government operations, in improving the
-civil service and post office system, and in
bettering the status of the Federal employee.
Many of these actions implemented Hoover
Commission recommendations. Republicans
spearheaded other advances in the field of
civil rights, including statehood for Alaska.)
Civil Rights
For the first time in over 80 years, Con-
gress enacted significant civil rights legisla-
tion. The Civil Rights Act of 1957 was de-
signed basically to protect the Negroes' right
to vote. It also set qualifications for Fed-
eral jurors, independently of State laws, and
provided for an additional Assistant Attor-
ney General to handle civil rights laws. In
addition, it established a six-member, bi-
partisan Commission on Civil Rights, with a
life of 2 years. The Commission is empow-
ered to investigate alleged deprivations of
voting rights because of color, race, religion,
or national origin; and to study and appraise
Federal laws� policies, and legal develop-
ments constituting denial of the legal pro- -
tection of the laws.
The la W as finally was enacted was limited
in scope principally because of Democratic
opposition in the Senate to Part III of the
House-passed bill, dealing with enforcement
powers to protect not only Voting rights but
a variety of civil rights.
Statehood
While Congress passed statehood for Alaska
legislation, the Democratic leadership totally
Ignored the equally compelling case of
Hawaii. The Republican administration had
urged statehood foi both of these territories
in conformity to the platform pledges of
both parties in 1956. The difference between
'Democratic promise and performance stands
out, in view of the 1956 Democratic Party
Platform pledge of statehood for both. Alaska
and Hawaii. _
Passport Controls for the State Department
The President requested legislation giving
the State Department express statutory
authority to override recent Supreme Court
rulings holding that the Department does
Federal Employment
Congress passed and the President ap-
proved a 10 percent cost-of-living pay in-
crease for classified Federal employees in the
Executive Branch, as well as for those in the
Legislative and Judicial Branches, retroactiVe
to January 1, 1958.
In addition, Congress enacted legislation,
requested by the administration implement-
ing a Hoover Commission recommendation,
to authorize the training of Government em-
ployees outside as well as within the agen-
cies in which they are employed�such train-
ing to be under public or private auspices.
The., sum of $18.4 million was appropriated
for the fiscal year 1958 for additional un-
employment compensation payments to
Federal employees. This was in line \ with
over-all provision that was made for .ato,pro-
priations to cover unemployed workers gen-
erally throughout the country.
Congress also adopted a model code of
ethics to guide all Federal employees and
officers in the proper conduct of their duties.'
Second Hoover Commission
Recommendations
Congress enacted H. R. 8002 to authorize
the inclusion of expenditure limitation in ap-
propriation acts and to revise budgeting prac-
tices of the executive branch so as to bring
long-term spending projects under a man-
datory annual review and prevent the ac-
cumulation of vast amounts of unspent
carryover funds, often beyond further con-
gressional scrutiny. This carried out a
Hoover Commission recommendation, a task
force of which claimed substantial savings
if budgeting and , accounting recommenda-
tions were all implemented. Other recom-
mendations and achievements of this Com-
mission are mentioned elsewhere in this
report. ,
Federal Judiciary
Several steps were taken to reduce the ex-
cessive workload of the Federal court sys-
tem. Thus, Congress raised from $3,000 to
$10,000 the amount which must be in con-
troversy to give the Federal courts jurisdic-
tion in civil actions; removed jurisdiction of
district courts over workmen's compensation
cases under State laws; and relieved the
chief judge of a circuit or district court from
his administrative duties at age 70. But
overcrowded dockets in Federal courts were
ignored by the failure to increase the num-
ber of judges and court personnel.
Presidential Inability
In the light of the incapacity of former
Presidents Garfield and Wilson and Presi-
dent Eisenhower's several illnesses, the
President recommended that Congress act
upon his proposal for legislation to clarify
the Constitution, but this Congress did not
act.
Campaign Funds and Lobbying
The need for more effective laws on lobby-
ing and Federal elections has been amply
demonstrated through investigations by sev-
eral congressional committees. Moreover,
the activities of labor organizations in these
fields were hiplighted by revelations of the
Senate Select Committee on Improper Ac-
tivities in the Labor or Management Field
and other congressional investigations.
Nonetheless, Congress enacted noTegisiation
on these subjects.
Reorganization Plans
The Congress extended to June 1, 1959,
the authority of the President to re-
organize the executive branch of the Govern-
ment, subject to rejection of a reorganization
plan by simple majority vote of either the
Senate or the House. Reorganization Plan
No. 1 of 1957 abolished the . Reconstruction
Finance Corporation, transferring its func-
tions to each of several agencies and de-
partments. Reorganization Plan No. 1 of
1958 consolidated the Office of Defense Mo-
bilization and the Federal Civil Defense Ad-
ministration into a new agency, the Office
of Civil and Defense Mobilization, in the
Executive Office of the President, thereby
establishing a single pattern of authority for
nonmilitary defense functions.
Pensions for Presidents
Provision was made for pensions, office
space, and staff for former Presidents.
Government finance and taxation
(Following historic 'principles of prudent
and responsible Government finance, Repub-
licans resisted Democratic proposals for in-
come tax cuts and New Deal-type spending
measures in the 85th Congress, and most of
these proposals were rejected. The 3 percent
railroad freight tax was repealed, blit the in-
come tax rates on corporate income and
various other excise taxes on consumer goods
were continued. The 85th Congress twice
complied with administration requests to
raise the Federal debt limit.)
Federal Debt Limits and Budget Control
After two consecutive balanced budgets
under the Republican administration; fiscal
1958 ended with a deficit of $2,813,000,000.
This was due to heavily increased defense
spending and antirecession programs. The
fiscal 1959 budget was set at $73.9 billion.
Congress also enacted -a bill to authorize
the inclusion of expenditure limitation in
appropriation acts and to revise budgeting
practices of the executive branch to prevent
the large carry-over of unspent funds (see
Government and Civil Service,- section on
Second Hoover Commission Recommenda-
tions).
In general, the '85th Congress cooperated
with the President's requests regarding the
debt. ceiling and taxes. There was no in-
crease in existing tax rates.
Freight Tax Repealed
The Congress did effect one important tax
cut and that was in the form of a bill which
repealed the 3 percent tax on freight ship-
ments, but which extended for another year
the wartime tax rates on corporate income
and a wide range of consumer goods. The
continuation of 'the excise levies will yield
$2,115,000,000. The bill also repeals the 10
percent tax on the transportation of pas-
sengers.
Excises Retained�Other Tax Adjustments
The 85ht Congress also enacted a measure
Which continues a stopgap formula for taxa=
tion of life insurance companies. This law
applies a 1955-56 formula for taxing income
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18070 CONGRESSIONAL RECORD � SENATE
of life-insurance companies to the taxable
year 1957.
Tax Writeoff Amended
In the first session, the 85th Congress took
action on the rapid tax amortization feature
of Federal law. Designed to stimulate build-
ing of defense facilities, the 5-year fast
writeoff has resulted in an estimated -post-
ponement of $5 billion in Federal tax revenue
over the period of 1950-60, at an interest
cost to the Government of about $3 billion.
The law was first enacted during World War
II, was reenacted during the Korean War and
was continued thereafter. It was amended
) by this Congress to restrict issuance of rapid
tax amortization certificates to new or
specialized defense facilities and to research
and development facilities for _defense. As
enacted; the new provisions are similar to
policies the administration had already
adopted. _
Labor and management
(The need for effective labor legislation
had become evident with revelations of the
many abuses exposed in the organized rabor
movement�abuses which materialized large-
ly because of a need to bring the law up to
date. Later, these abuses were, and continue
to be, highlighted by the hearings conducted
by the Senate Select Committee on Improper
Activities in the Labor .or Management Field.
While some prdgress has been made toward
effective regulatory legislation, Democratic-
controlled Congresses have, for the most part,
frustrated every attempt to enact this much
needed legislation.)
Recommendations of the McClellan
Committee
The legislative recommendations of the
Senate (McClellan) Select Committee on
Improper Activities in the Labor or Manage-
ment Field called for laws to: (1) Regulate
and control pension and health and welfare
funds; (2) regulate and control union funds;
(3) insure union democracy; (4) curb mid-
dlemen in labor-management disputes; and
(5) clarify the "no man's land" in labor-
management relations. These recommenda-
tions were based on over a year-and-a-half
of hearings and volumes of sworn testimony.
Clearly, the mandate to the Congress was to
enact effective legislation.
Many bills were introduced to do just this.
However, the Democratic-controlled Labor
and Public Welfare Committee saw fit to re-
port out only two bills: S. 2888, to provide for
registration, reporting, and s disclosure of
employee welfare and pension plans; and
S. 3974, to provide for the reporting and dis-
closure of certain financial transactions and
administrative practices of labor organiza-
tions and employers, to prevent abuses in the
administration of trusteeships by labor or-
ganizations, and to provide standards with
respect to the election of officers of labor
Organiaztions.
Pension and Welfare Funds
In April, when S. 2888 was being debated,
Republicans offered many amendments to
carry out recommendations of the McClellan.
committee. These amendments were then
offered because there was a strong belief that
the Democratic-controlled Congress might
enact a mild 'bill on pension and welfare
funds and do nothing^else on labor legisla-
tion despite the outrageous abuses in the
labor movement exposed by the McClellan
committee. A sold phalanx of Democrats de-
feated the Republican efforts, but were com-
pelled by pressure of public opinion to as-
sure the Senate that a general bill dealing
With abuses" in the labor movement would
be brought before the Senate.
On these assurances, S. 2888 finally passed
With 46 Republicans and 42 Democrats sup-
porting it. This bill provides: (1) All wel-
_fare and pension plans with membership of
over 100 employees must be registered with
the Department of Labor; (2) an annual,
audited report must be made by the admin-
istrator of a welfare or pension fund to the
Department of Labor; (3) the Secretary of
Labor is authorized to investigate situations
in which it appears funds are being jeop-
ardized; and (4) penalties for embezzle-
ment, or other misuse of funds, are estab-
lished.
The House passed a much milder com-
panion bill (H. R. 13507) to S. 2888, and
the two bills went to conference. The bill
that came out of conference more nearly
favored the House version than the Senate
version. It provided mainly for the regis-
tration of information on pension and wel-
fare plans, rather than providing for pro-
tection to the beneficiaries of such plans.
Reporting was enlarged by a provision that
exempted only plans covering not more than
25 employees. The bill was considerably
weakened by the elimination of the powers
of the Secretary of Labor to protect the in-
terests of the beneficiaries of pension and
welfare plans by conducting investigations,
issuing subpenas, and seeking injunctions
to prevent violations of the act. Accepting
thei conference report as the best legisla-
tion obtainable, both Houses cleared the bill
for the President.
Legislation to Protect Trade *Union Members
and the Public
After Republican attempts to amend S.
2888 proved fruitless, public demand vir-
tually forced S. 3974 out of committee.
As reported, the bill was grossly inade-
quate. In an almost unprecedented move,
Secretary of - Labor Jams( P. Mitchell
strongly criticized the measure in these
words: "After examining and analyzing the
proposals that have just been made to the
Congress by the committee, I am deeply
disappointed to find that these proposals
contain deficiencies and weaknesses of such
magnitude that were they enacted into law,
I am convinced they would provide only
illusory protection to trade union members
and to the public, as well as being almost
impossible to administer."
As the bill was being debated on the floor,
12 Republican-spOnsored amendments, each
designed to secure more freedom and demo-
cratic rights for rank and file union mem-
bers, were defeated. An overwhelming ma-
jority of Democrats joined together to
bring about the defeat of each of these
amendments.
Since S. 3974 was the only legislation likely
to come from a Deniocratic-controlled Con-
gress and there was the possibility of addi-
tional amendments by the House all Repub-
licans in the Senate save one voted for the
final bill. The bill provides: (1) All unions
must publicly report their income and ex-
penses, but the Secretary of Labor may ex-
empt locals with fewer than 200 members or
Income under $20,000 per year; (2) union
officials must publicly report their holdings
in companies or deals with employers their
union represents or does business with; (3)
employers and their middlemen ,agents must
publicly report spending to influence workers'
union activities; (4) jail sentences and fines
are provided for false reporting, nonreport-
ing, and destruction of union books; (5) sub-
pena powers are given to the Secretary of
Labor to check the accuracy of reports; (6)
any official violating the reporting provisions
is barred _from union office for 5 years; (7)
anyone convicted of a felony is barred from
union office until his voting rights are re-
stored; (8) embezzlement of union funds
is subject to a maximum penalty of 5 years
in jail or a $10,000 fine, or both; (9) unions
may not lend more than $1,500 to their offi-
-cials; (10) an international union must ex-
plain in reports why local officers have been
supplanted by trustees; also, trusteeships are
limited to 18 months unless it can be shown
that -a. longer period is needed; (10 secret
elections must be held for all union officers
or delegates who select international officers;
�
August 25
(12) loCal union officers are limited to 3-year
terms, but international officers must be
chosen at least every 4 years; and (13) a
majority of a local union may oust their
officials for misconduct.
The bill also provides that the National
Labor Relations Board must take jurisdiction
over all Taft-Hartley law disputes, but it may
Cede its jurisdiction to State agencies agree-
ing to follow its rulings; criminal penalties
are provided for middlemen as well as em-
ployers who bribe union officials or any ?rep-
resentative of an employer's workers; picket-
ing to extort money from an employer is pro-
hibited; economic strikers, as well as their
replacements, are permitted to vote in NLRB
elections to determine union representation;
employers, as well as union officials, must
swear they are hot Communists to use the
NLRB; and building trade unions can make
agreements with construction employers be-
fore workers are hired and the union has
established itself as the ernployees' represen-
tative.
S. 3974 as passed is woefully inadequate
in many respects. Its major shortcoming
is that it fails to carry out the three most
urgent recommendations of the McClellan
Committee: (1) fails to impose a fidu-
ciary relationship on union officials in
charge of union funds (an amendment
which would have accomplished this was
defeated, with 42 Democrats voting against
it); (2) it fails to provide for secret ballots
for votes on vital union matters other than
election of officers (an amendment which
would have accomplished this was defeated
by a vote of 31 yeas to 52 nays, with 40
Democrats voting against it); and, (3) it
failed to clear up the "no man's land" prob-
lem wherein a State is not empowered to act
under present law in those labor disputes
where the NLRB declines to assert its juris-
diction (an amendment which would have
granted authority to the States to take
jurisdiction over labor disputes in which the
NLRB declines to act was defeated by a
vote of 37 yeas to 53 nays, with 40 Demo-
crats voting against it). The bill also did
nothing to protect the individual worker
against the harmful effects of secondary
boycotts and organizational picketing.
The bill (S. 3974) passed by the Senate
June 17, 1958 went through a curious course
in the House. The Democratic Speaker of
the House kept it on his desk for more than
40 days before he referred it to the House
Education and Labor Committee. No hear-
ings were held on the bill. When motion
was made in the committee to consider the
bill, the motion was voted down 22 to 7,
every one of the 16 Democrats present vot-
ing against it. Notwithstanding that vote,
the Democratic leadership brought the bill
before the House in the closing days of the
session under suspension of the rules. This
drastic procedure allowed only 40 minutes
for debate�less than one minute for each
of the 48 pages of the bill, permitted no
amendments to the bill, and required a two-
thirds vote for passage. The bill failed to
pass py vote of 190 yeas to 198 nays.
National defense and mutual security
(Responding to continued tension in for-
eign affairs, Congress improved the strength
of the Armed Forces by improved organi-
zation of the Defense Department, by. in-
creasing military personnel levels, by accel-
erating missile and bomber programs, by
larger appropriations for ships and aircraft,
and by raising the standards and attractive- -'
ness of the military as a career service. The
Congress appropriated an unprecedented
peacetime total of more than $40 billion for
the Department of Defense and more than
$3 billion for mutual security.)
- Defense Reorganization
At the request of President Eisenhower,
Congress enacted the Department of Defense
Reorganization Act, strengthening control of
the Secretary of Defense, granting flexibility
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1958
\CONGRESSIONAL RECORD � SENATE
to manage the huge ,Defense Department,
and providing clearer lines of command au-
thority. At the same time, Congress re-
tained its traditional control over the roles
and missions of the military services.
In the Reorganization Act, Congress gave
statutory backing to the National Guard and
the National Guard Bureau and reaffirmed
the intent of Congress that there shall be
naval aviation and a Marine Corps. Con-
gress also provided that each military de-
partment will be separately organized under
its own Secretary.
Congress retained the dual role of the
military chiefs of staff as members of the
Joint Chiefs of Staff, and also as military
heads of their own services. The Joint
Staff was enlarged to permit greater plan-
ning and advisory assistance for the Secre-
tary of Defense.
Congress resolved the knotty problem of
the powers of the _Defense Secretary to
change military functions by requiring the
Secretary to report to Congress proposed
changes in functions established by law.
The Congress reserved to itself a time period
in which to determine whether the pro-
posed change involved a major combatant
function or would tend" to impair the de-
fense of the United States. If Congress did
not oppose the proposed change during a
specified time span, the plan Would go into
effect.
Congress preserved the feature of exist-
ing law which grants military secretaries
and members of the Joint Chiefs of Staff
the right to come to Congress on their own
initiative with their recommendations for
the Department of Defense.
Under the act the President is permitted
to set up unified or specified combatant
commands 1 with the line of authority flowing
from the Commander in Chief to the Secre-
tary of Defense to the combatant com-
mander.
Accelerated Missile and Bomber Funds,
Fiscal Year 1958
To accelerate high priority missile and
bomber programs as requested by the Presi-
dent, Congress, in February 1958, approved
$1.260 billion in new funds for use in the
, fiscal year ending June 30, 1958. Funds pro-
vided went for such projects as three sub-
marines for launching the Polaris missile,
1 construction of ballistic mi.ssile facilities
and detection facilities, and building of dis-
persal and alert facilities for Strategic Air
CoMmand combat aircraft. (See Missiles
and Space.)
Defense Appropriations, Fiscal Year 1959
For fiscal year 1959, Congress provided
$39,602,827,000 in new funds and $535 mil-
lion in transfers from cash revolving funds
for military functions of the Defense De-
partment. This was $815,857,000 more than
the President's revised budget request. Con-
gress exceeded the President's tequest in
such programs as increased military per-
sonnel strength, numbers of ships and air-
craft, and acceleration of missiles.
Funds were provided to maintain the
Regular Army at 900,000 strength through
fiscal year 1959, instead of dropping to 870,-
000 by end of fiscal year 1959; to maintain
the Army National Guard at 400,000 rather
than dropping to 360,000 by end of fiscal year
1959; to build. up the Army Reserve to 300,-
000, instead of 270,000 begin-and-end
, strength; and to build up the Marine Corps
to 200,000 men instead of dropping to 175,000
as provided in the budget. Congress pro-
vided for 630,000 Navy and 850,000 Air Force
personnel, as requested by the President.
Congress also provided in excess of budget
requests: $37 million for Army moderniza-
tion; $609,043,000 for 4 Polaris subma-
rines in addition to 2 in the budget:
.$11 million for speeding three Regulus sub-
marines; $48 million for more Hound Dog
missiles for the B-52; $90 million to ac-
No. 149--4
celerate the Minuteman ICBM; $65 million
for the emergency fund of the Secretary of
Defense; and $5 million for the Army map
program.
With the recent dispatch of United States
marines and paratroopers to the Middle East
clearly in mind, Congress approved $140
million above the budget for troop carrier
aircraft. Two amphibious ships for the ma-
rines were authorized by Congress which
provided the $69 million budget figure to
cover the cost. Seven million dollars were
earmarked by Congress for modernization of
antisubmarine warfare vessels' of the Navy's
reserve fleet. To complete two destroyer
escorts scheduled for cancellation for lack
of funds, $13 million was provided.
Congress funded 15 KC-135 jet tankers
more than the administration asked, grant-
ing $55,595,000 for aircraft and ground sup-
port equipment. These planes are used to
refuel aircraft and thereby extend their
range.
Military Construction
Congress also provided funds to accelerate
military construction programs for ballistic
missile bases, detection and warning systems,
and for dispersal of Strategic Air Command
bomber squadrons. � This was an advance in-
stallment of the 1959 budget.
For regular military construction, fiscal
year 1959, Congress approved more than $1
billion to permit building research and test-
ing facilities, troop and family housing, hos-
pital and medical facilities, communications,
- aviation and shipyard facilities, and other
military construction.
False Surrender Study Rumor
The White House labeled "nonsense" a
press report that a nonprofit scientific agency
working for the Defense Department was
studying conditions in a nuclear war when
United States surrender would be advisable.
In a statement issued from the White
House August 15, 1958, the President's press
secretary said, in part:
"There has been no public money spent to
study how or when the United States might
surrender. There will be no such money
spent for such a purpose."
Referring to an amendment to the supple-
mental appropriation bill for fiscal year 1959,
pending in the Senate at the time, to bar
use of Federal funds for such a study, the
statement continued:
"Evidently the Senate feels about this as
does the President. It wants to require that
no appropriations be used for such a purpose.
"As to that, the President wants me to say
this. Even if he' were given money for this
purpose, it would not be spent. The whole
matter is too ridiculous for any further
comment."
As a further means of assuring the Ameri-
can people and the rest of the world that the
United States is not contemplating surren-
der, the Senate by a rollcall vote of 88 yeas
to 2 nays adopted the amendment. �
Improving the Military as a Career Service
Combat readiness of our existing forces
could be greatly iniproved if trained techni-
cians and skilled personnel woulkremain in
uniform, instead of leaving after their first or
second tour of duty.
Therefore, to make the military service
more attractive as a career, the Congress en-
acted pay raises for servicemen with at least
2 years of active duty, ranging from 3 to
41 percent. In addition, a system of pro-
ficiency pay for enlisted men and responsi-
bility pay for officers was provided as a means
of rewarding special skills and responsibili-
ties, thereby encouraging trained experts to
remain in the service. Hazardous duty pay
was provided for mliitary personnel who
serve as human test subjects in thermal
stress experiments. Military careers for
nurses and medical specialists of the Army,
Navy, and' Air Force were also made more at-
tractive by legislation increasing the perma-
)
18071
tient grades they may obtain. Further, the
Military Construction Act of 1957 authorized
construction of housing, conununity and
recreational facilities, as well as operational
facilities, for members of the armed services.
Privileges of servicemen overseas to send
home duty-free gifts and to bring back their
possessions free of duty were extended to
July 1, 1959. Navy and Marine enlisted ca-
reer reservists who complete 20 years of active
service, were given the same retirement bene-
fits for which regular enlisted personnel of
these services' are eligible. Congress also
made permanent the Missing Persons Act
Which authorizes heads of military and other
Government Departments to continue pay-
ments of personnel absent from their posts
while designated as missing.
As another means of obtaining personnel
With the leadership or technical ability
needed to use today's complex weapons, there
was enacted a law to permit raising the men-
tal and physical qualifications for induction
into the Armed Forces. Those deferred from
induction because of failure to meet the
higher standards will be subject to induction
in event of an emergency.
To increase combat readiness of the naval
air arm, Congress enacted a law requiring
naval air cadets to serve at least 3 years of
active duty following cadet training.
Republicans led the fight to provide the
full budget request for funds to pay for
medical care in civilian hospitals of depend-
ents of Armed Forces personnel. In the brief
period this program has been in effect, it
has been a great morale booster. It is one
of the most prized fringe benefits available
to the families of men and 'women in uni-
form. Republicans were determined not to
permit the program to be jeopardized for
lack of funds.
Civil Defense and Defense Mobilization
Under Reorganization Plan No. 1 of 1958,
the Federal Civil Defense Administration
and the Office of Defense Mobilization were
consolidated July 1, 1958, into a new agency,
whose title was changed by subsequent Act
of Congress to Office of Civil and Defense'
Mobilization.
The President's authority to proclaim a
state of civil defense emergency was ex-
tended for 4 years to Jtne 30, 1962. This
would allow the President to bring into ef-
fect certain emergency powers to deal with
an enemy attack or imminent attack.
In another civil defense move, the Con-
gress passed a law giving the Federal Gov-
ernment joint responsibility with State and
local governments for civil defense. The
Federal Government could give to States
radiological instruments, detection devices,
gas detection kits, and similar devices at a
cost of up to $35 million a year for 5 years.
Up to $25 million per year for 5 years
could be contributed by the Federal Govern-
ment to the States for personnel and admin-
istrative expenses, provided States employ a
full-time civil defense director or deputy
director. A maximum of $2 million per year
was authorized for contributions to States
for personal equipment of State and local
civil defense workers.
Miscellaneous Defense Matters
To assure prompt performance on con-
tracts for guided missiles and other essen-
tial defense procurement, Congress extended
the Defense Production Act for another 2
years to June 30, 1960. Under the act, the
President may establish priorities for de-
fense contracts, allocate certain materials
for defense purposes, make loans and pur-
chases to build up defense capacity, and es-
tablish a reserve for trained executives to
fill Government positions in time of mobili-
zation.
Committees of both Houses .,of Congress
investigated the status of our defense prep-
arations, with particular intensity after
Russia launched the first sputnik last
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18072 CONGRESSIONAL RECORD � SENATE
October 4. The, Senate Preparedness Sub-
committee January 23 issued a list of 17
principal areas where decisive action should
be taken. Progress reports from the De-
partment of Defense were required from time
to time.
Congress also authorized the -loan of 43
naval vessels to friendly foreign countries,
the continued loan of one aircraft carrier,
and the experimental use of 15 target
' vessels.
Mutual Security
President Eisenhower once again asked the
Congress to continue support of our mutual
security pacts by appropriating funds for
military hardware and economic assistance
to our allies. In requesting $3.9 billion for
fiscal year 1959, Mr. Eisenhower pointed out
the consequences of abandoning the pro-
gram: A severe dislocation and impairment
of free world power; a crumpling of our
strategic overseas positions and a forcing of
these positions back to our own shores; a
massive increase in our own defense budget
requiring increases in taxes; a heavy increase
in inductions of American youth 'into the
Armed Forces; and ultimately "a beleaguered
America, her freedoms limited by mounting
defense costs, and almost alone in a world
dominated by international communism."
President Eisenhower cited the increased
strength of the free world over the past 8
years. "Since 1950 * � * the ground forces
of countries associated with us for collective
defense have grown to include nearly 5 mil-
lion well-trained and equipped fighting men
situated at strategic locations around the
World. Naval forces have increased by over
100 percent, and the air forces of these na-
tions now include 32,000 aircraft, of which
14,000 are jets."
As a means of preventing Communist sub-
version and economic penetration, Mr. Eisen-
hower urged continued technical assistance
and economic development programs to-help
underdeveloped nations.
During debate on the mutual security
authorizing legislation, there was an at-
tempt to lift prohibitions in existing law so
as to permit economic and financial aid to
all Communist countries, except Russia, Red
China, and North Korea, at the President's
discretion. Under this so-called Kennedy
amendment, nonmilitarY aid could go to
countries that ship war materiel to the So-
viet Union or any satellite nation.
� Republicans in the Senate led the fight to
defeat this amendment, contending United
States economic and financial aid to Com-
munist countries only serves to entrench
further the hold of Red rulers over their cap-
tive peoples. Republicans further argued
such aid would involve billions_ of dollars,
would subtract from aid available for na-
tions friendly to us, and would increase the
burden of the American taxpayers. By a
rollcall vote of 43 yeas to 42 nays, the Ken-
nedy amendment wfts stricken from the bill.
Left on the statute books were Battle Act
prohibitions against giving aid to countries
that threaten the security of the United
States.
Against the President's request for $3.950
billion for foreign economic and military
assistance, the Congress approved $3.298 bil-
lion.
Missiles and space -
(Arrival of space age creates serious mili-
tary and civil problems for Congress. New
agencies are established for space research,
technology, and operations. Peaceful explo-
ration and use of outer space is favored.
Missile programs are strongly supported.)
Congress Deals With the Space Age
The successful leap intospace by manmade
earth satellites definitely opened the space
age with all its grave military and other im-
plications for the United States.
Both President Eisenhower and the Coms
gress recognized the importance of turning
space programs to peaceful purposes for the
benefit of mankind. They further recognized
exploration into the new dimension of space
cut across existing organizational lines and
required new arrangements.
Therefore, at the request of the president,
Congress provided top-level organization,
necessary funds, and facilities for a new
civilian space agency to have charge of the
Nation's aeronautical and space activities.
Responsibility for the military portion of
the space program was left with the Defense
Department, where a new Advanced Research
Projects Agency will direct military research
in space technology and weapons of the
future.
Congress established an independent
agency, the National Aeronautics and Space
Administration, under civilian direction to
plan, direct, and conduct aeronautical and
space activities, to arrange for the scientific
community to aid in measurements and ob-
servations of Space vehicles, and to dissemi-
nate widely information and findings.
At the same time, Congress imposed upon
the President the duty of developing a com-
prehensive space program and of resolving
differences among Federal agencies in con-
nection with those programs. To aid the
President, Congress set up a 9-member
National Aeronautics and Space Council com-
posed of the Secretaries of State and Defense,
the Space Administrator, the Chairman of
the Atomic Energy Commission, one other
representative of a government agency, and
three private individuals who are eminent
in science, engineering, or other professions.
The President was designated Chairman of
the Council.
The President requested $125 million for
the new Space Administration, including
$47.8 million for construction, -equipment,
and facilities needed immediately. Con-
gress approved $80 million. Together with
$117 million to be transferred from the De-
partment of Defense, the Space Administra-
tion would have a total of $197 million- for
nonmilitary space programs.
In addition,- Congress approved $23 million
for-research facilities and improvements and
$78,100,000 for salaries and expenses of the
National Advisory Committee for Aeronau-
� tics, which will be absorbed by the Space
Administration.
The Department of Defense has about
$294 million of 1959 funds for use on space
activities primarily military in nature,
making about $500 million in all of 1959
funds directly applicable to space programs
in the Federal government.
Congress also took steps to assure con-
tinuing congressional surveillance of space
problems and activities. The Senate created
a 15-member standing legislative Commit-
tee on Aeronautical and Space Sciences with
juitsdiction over the new Space Adminis-
tration. � on the House side, a 25-member
standing legislative Committee on Science
and Astronautics was established with wider
jurisdiction than its Senate counterpart.
Resolution Favors Peaceful Exploration and
Use of Outer Space
The House and Senate approvea a concur-
rent resolution putting the Congress on rec-
ord favoring international agreements for
peaceful exploration of outer space, for ban-
ning use of outer space for military aggran-
dizement, and for cooperation in scientific
space developments to improve communica-
tions, weather forecasting, and other bene-
fits.
Missile Programs Strongly Supported
The -Nation's missile programs to date
have been under the Defense Department.
The total fiscal year 1959 program for mis-
siles is about $6.7 billion, of which about
$2.5 billion is for development and improve-
ment of missiles. Of the $4.2 billion for
procurement of missiles, somewhat more
August 25
than half is for missiles going to combat
units.
Congress has provided necessary appro-
priations to carry missile programs forward.
National economy
(The economic downswing which began
last fall triggered a torrent of spending
schemes by Democrats in both Houses of
Congress. The Republican Administration
refused to be panicked and, instead, calmly
put into operation over 50 constructive steps
designed to lead the Nation ba* to previous
record heights of prosperity. As the Con-
gress closed, many indicators pointed to an
end Of the recession.)
When it became clear in the fall of 1957
, that an economic recession had set in, the
85th Congress was confronted with the, prob-
lem of what it could do to stem the eco-
nomic downturn.
President Eisenhower and Secretary of
Commerce Sinclair Weeks, steadfastly ex-
pressed their confidence that the recession
would level off and cited facts to support
their views. In a matter of months this _
confidence was increasingly justified as un-
employment dropped and business condi-
tions .steadily improved.
Democratic Spending Plans
Meanwhile, New Deal Democrats in both
Houses of Congress unleased a whole barrage
of wild spending bills, unsound tax pro-
posals, and public works plans that were
strongly reminiscent of the New Deal. In
the House and Senate combined, the total
of nonduplicating spending bills introduced
by Democrats would have cost the Govern-
ment an estimated $208 billion in five years.
Such a sum amounts to one-half the value
of everything made, produced, sold, con-
structed, and all personal income, profits,
savings, etc., in the United States last year.
It would have had to come from Government
borrowing (causing inflation) ; or from in-
creased taxes on our already burdened
population.
Republican Administration Stimulates the
Economy
The President, in contrast, took action and
'made solid, constructive proposals designed
as part of the "orderly acceleration" to help
spur business and provide More jobs. It
developed that the Administration had taken
over 50 seperate actions to stimulate the
,economy. These steps included the easing
of credit, stimulants to home building, in-
creased highway outlays� for the current
year, a step-up in the urban renewal pro-
gram, a $5 billion jump in defense procure-
ment in the first half of 1958 over the figure
for the last half of 1957, the extension of
unemploymentcompensation benefits, a
post office modernization program, and the
awarding of defense contracts to "labor sur-
plus" areas.
In the President's annual economic report
which he transmitted to Congress last Janu-
ary, he assessed the economic outlook and
said: "There are grounds for expecting that
the decline in business activity need not be
prolonged, and that economic growth can be
resumed without extended interruption."
Economic Progress Resumed
The President's appraisal of the economic
picture was substantiated as the secohd ses-
sion of the 85th Congress approached its
.close. Personal savings were at an all-time
high, employment rose, individual income
was climbing, and weekly factory wages hit
a record high.
Legislation Speeds Recovery
The second session of the 85th Congress
rea-Ponded to the challenge of a recession by
enacting legislation that included increas-
ing the Federal debt limit; a $1.85 billion
housing construction bill; a bill authorizing
150 river, harbor, and flood control projects at
an estimated cost of $1.5 billion;-- and supple-
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1958 CONGRESSIONAL RECORD � SENATE
mental appropriations bills for defense and
for the Department of Labor. At the Presi-
dent's request, the supplementary appropria-
tions bill for Labor provided $25 million more
for unemployment compensation for veterans
and $18.4 million, for unemployment com-
pensation of Federal employees. The supple-
mentary defense appropriations till for fiscal
1958 made available $1.260 billion in new
funds and $150 million in transfers from old
funds to speed up high priority missile and
bomber programs.
Aids to Railroads
As a means of strengthening and improv-
ing the national transportation system, Con-
gress amended the Interstate Commerce Act
to provide assistance to common carriers by
railroad in -acquiring and maintaining fa-
cilities and equipment. The Interstate
Commerce Commission was` authorized to
guarantee loans to railroads from private
sources to the amount of $500 million. Rail-
roads will also gain some advantage from
the repeal of the 3 percent tax on freight
shipments.
Small Business Aided
Congress made the Small Business Ad-
ministration a permanent agency. A tax
revision bill giving substantial aid to small
business was enacted.
Public works and natural resources
(The basic differences between the Re-
publican and Democratic Parties were
sharply defined in legislation enacted or-pro-
posed by the 85th Congress in the fields of
public works and 'natural resources. Con-
trasted to the Democratic philosophy of
Federal control and Federal expenditures of
taxpayers' money by a paternalistic Gov-
ernment, the Republican Party believes that
the development of public works should be
in the hands of local and State authorities
whenever possible and with those authori-
ties sharing the costs; that natural re-
sources should be conserved and utilized but
with the consent and -authority of those
most vitally affected.)
Party Differences Revealed in Legislation\
Typical ,of -the basic differences between
the two parties was the attempt to enact
the Democratic-sponsored community facili-
ties bill as a so-called antirecession measure
over the objections of the President. Passed
by the Senate, the measure called for $1
billion in loans to aid cities and towns in
building public works. The House raised
this figure to $2 billion�an increase of 100
percent. This make-work bill would have
added to the public debt and bypassed Con=
gress on the loan plan by permitting funds
to be paid out of the Treasury without con-
gressional approval. It would have added
fuel to the fires of inflation. Fortunately,
economy-minded Democrats joined with Re-
publicans in defeating this expanded bill.
Still another bill designated as an anti-
recession measure passed by the Senate but
not the House is the so-called Area Rede-
velopment Administration, set up within the
Housing and Home Finance Agency, which
would have loaned a;$100 million revolving
fund each for the establishment of indus-
tries in both urban and rural areas. Still
a third $100 million revolving fund would
have been used for public-facility loans to
attract new industries to areas currently
without sufficient 'water, sewage, and other
facilities. Other provisions included urban
redevelopment programs expanded to incor-
porate nonresidential redevelopment, infor-
mation programs, vocational training, and
subsistence payments for trainees under the
guise of aiding lunemployment. No consid-
eration was given to economic or business
standards or for the reasons for these de-
pressed areas. This form-of subsidizing cer-
tain industries and areas at the expense of
others, with no criteria for eligibility, could
have placed the applicants on the basis of
favoritism and political expediency.
Another measure adding to more Federal
control of public power was the bill, passed
by the Senate but not the House, to permit
TVA to build new power plants with money
from bonds instead of coming to Congress
for more funds. The Senate ignored the
President's request that TVA should obtain
approval from the Treasury Department be-
fore issuing bonds and that its operations
should be confined to the area now served
and its expenditures to be reviewed in the
Federal budget.
This Republican administration started
and has continued instead the development
of natural resources and public works, wher-
ever possible, on the basic theory of shared
responsibilities and costs with full participa-
tion by the Federal Government, States, and
local communities and individuals.
During this second session of the 85th
Congress, some of these Republican-sup-
ported and sponsored proposals have met
with congressional approval. Some have
been defeated, delayed, postponed, or ignored.
Some falling by the wayside would have
saved overburdened taxpayers money while
at the same time improving public works or
conserving our natural resources.
Accomplishments in Public Works and
Natural Resources
The Omnibus, Act of 1958 for Rivers and
Harbors Flood Control and Water Supply
finally became law after two vetoes by the
President--vetoes caused by including proj-
ects which were not approved by the Corps
of Engineers or whose feasibility were of
doubtful value.
Increased authorization was given for the
Republican-sponsored national road building
program for primary, secondary, and urban
_roads with some control over billboards.
A record $3.4 billion in Federal highway aid
is being allocated. The President approved
this bill but stated he tlid so with serious
misgivings because certain provisions could
create unfortunate precedents. Among them.
were the substitution of a two-for-one ratio
which viblated the long established principle
of a 50-50 sharing of Federal and State costs;
the $115 million Federal advance to the States
to aid in financing 'their one-third share;
and incentive payments to encourage the
, States to regulate highway advertising to be
furnished from general tax revenues rather
than from highway user tax revenues. This
is .but another distortion of an Administra-
tion-sponsored program with its. expanded
drain of the Federal Treasury adding to the
huge deficit already confronting the tax-
payers.
With statehood for Alaska now a reality,
encouragement is being given to develop her
natural resources and thus Congress approved
a measure to stimulate the oil and gas
leases of inland underwater areas in that
new State.
Other public works' receiving approval of
Congress include the Massachusetts-Con-
necticut Flood Control Compact which will
lessen the devastation from floods in ,that
area and the authorization to construct four
units of the Chief Joseph Dam Project as
well as authorization of water conservation
projects in New Mexico and Texas to aid in
satisfying their water needs.
Another conservation measure approved
by Congress is that of limiting withdrawal of
public lands by the Defense Department to
. 5,000 acres unless specifically authorized by
Congress.,
Also approved was $10 million in funds for
the Inter-American Highway; an extension
and enlargement of airport aid and a bill to
provide coordination between the Govern-
ment's fish and wildlife conservation pro-
grams and its water resource development
projects.
In 1954, the Republican administration
initiated a five-year program for water re-
18073
sources projects. Projects costing $3,723,- ,
300,000 are being carried forward,under this
regular five-year program. In addition,
there have been 461 newly initiated projects
(424 new starts in the Corps of Engineer's
civil Works program and ,37 in reclamation)
which will be built at a total ,cost of $5,-
020,187,000. Included in this program is the
Colorado River storage project, approved in
1956, at a total project cost ceiling of $760
million�the largest single package Water re-
source appropriation ever authorized.
Other Programs Fell by the Wayside
Congress adopted a resolution to acceler-
ate civil construction and commended the
administration for what it is already doing.
But it rejected the lease-purchase program
designed to permit private firms to build
much needed post offices and other Federal
office buildings and lease them to the Gov-
ernment, with the rent to apply to the pur-
chase price. Thus, a program which would
have saved millions of dollars to the taxpay-
ers was not approved by Congress.
Once again there was an effort to revive
the issue of a Federal dam at Hells Canyon
despite its rejection by the administration
and former Democratic-controlled Con-
gresses. Through private construction the
American taxpayer in saving an estimated
$500 million.
The partnership policy in the development
of natural resources initiated by this Re-
publican administration in order that local
and State participation would assume a
greater part in financing these projects, was
given a setback by this Congress. Among
these were such projects as the development
of the power facilities of the Trinity Divi-
sion of the Central Valley project in Cali-
fornia; and the Fryingpan-Arkansas power
and irrigation project authorization in Col-
orado, strongly backed by the Republican
administration as projecta where Federal
construction is necessary and which was rec-
ommended by the administration in 1956,
1957, and 1958.
Personal and public welfare
(The welfare of the American people has
always received prime consideration in the
policies of both major political parties. The
difference lies in the approach to that prob-
lem. The Republican Party is opposed to
Federal compulsory plans in health, to Fed-
eral encroachment upon State and local
control of education, and to the dole in any
form. Believing that it is a Federal re-
sponsibility to assist in care for the aged,
chronically ill, anti totally disabled, as well
as the care of our veterans, the Republican
Party follows the adage of our first Republi-
can President, Abraham Lincoln, in doing
for the people only those things which they
are unable to do for themselves. Freedom
is endangered when government follows a
,paternalistic approach to the welfare of our
citizens.)
Federal Aid to Education
The President sent a special message to
Congress toil year requesting prompt en-
actment of a 4-year educational pro-
gram with. emphasis on science in the
interest of national security. His recom-
mendations resulted in an $887,400,000 edu-
cation program, but eliminated in this com-
promise bill was the Chief Executive's
proposal for Federal college scholarships.
Instead, the Congress agreed upon a loan
program for needy students Costing $295
million over a 4-year period. In addition
to the student loan program, the bill pro-
vided for postgraduate fellowships, im-
proved teacher education, an expanded
vocational education program, foreign lan-
guage centers, and Federal aid in the pur-
chase of science-teaching aids. The student
loan program would authorize loans up to
$1,000,a year at 3 percent interest and to be
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18074 CONGRESSIONAL RECORD � SENATE August 25.
administered
� administered by the colleges and the Federal
Commissioner of Education.
Specific Educational Assistance
Among other education legislation ap-
proved by Congress was the continuation of
school aid for construction and maintenance
in areas affected by Federal installations.
The Presid,ent, in approving this legislation,
said he did so reluctantly in the belief that
Federal aid in this field should be tapered
off with the States and local communities
assuming more of the financial responsibility
for the reason that many Federal workers
owned their homes in the communities and
paid taxes to the State and community. Also
approved were funds for grants-in-aid to
public or nonprofit accredited schools of
public health training, and in the adminis-
tration of State and local public health pro-
grams; Federal grants to each State to aid
in development of educational television; and
out-service training for Federal employees to
increase their efficiency. The rural library
service, enacted in 1956, was extended al-
though with twice as much funds as re-
quested in the President's budget message.
Health
The Hospital Survey and Construction Act
(Hill-Burton) was extended'for 5 years and
funds for four categories were included con-
sisting of grants for construction of-diagnos-
tic centers of hospitals for the chronically ill;
of rehabilitation centers; and grants for
nursing- homes, all nonprofit institutions.
Also enacted into law were authorizations
for loans for construction of hospitals and
other facilities for those of certain religious
beliefs whose precepts prevent them from
accepting grants. Grants were given for con-
struction of dental and medical schools. The
Health Research Facilities Act was extended
for 3 years, authorizing matching grants of
$30 million for the construction of research
centers.
, No Action Taken on Other Major Proposals
Although the 84th Congress, under Public
Law 813, authorized Federal funds to assist
the States in establishing committees on
education beyond high school, no appropria-
tions were made then or in the 85th Con-
gress. No progress was made in other major
recommendations by the President such as
Federal grants-in-aid to combat juvenile
delinquency; the pooling of resources of
small insurance companies -and nonprofit
'associations so that a greater number of
people could obtain the benefits of- volun-
tary health insurance. Nothing has been
done on legislation to require advance testing
of chemicals to be used in foods to assure
their safety for human consumption. No
action was taken on the bill to create a 21-
member temporary Presidential study com-
mission on problems of the blind.
Children
Congress extended for 3 years the special
milk program for children in nonprofit
schools, summer camps, and other similar
Institutions. Encouragement was given to
the expansion of teaching and research in
the education of mentally retarded children
through grants to nonprofit institutions of
higher learning and to State educational
agencies.
Social Security and Old-Age Assistance
' Approved was a bill for a White House
Conference on the Aging to be held before
September 30, 1960, with recommendations
to be made in such fields as employment,
housing, medical care, and community ac-
tivities for the elderly.
Authorization was given also for $1 mil-
lion grants-in-aid to train public health
specialists, technicians, and administrators.
The President made several requests In
his budget message for changes in both social
security and old-age assistance. The request
for consolidated annual wage reporting for
both income tax and social-security payroll
tax to relieve employers of needless paper
work was not acted upon. Also the request
for modernizing the formula for public as-
sistance with a view to gradually reducing'
Federal participation in its financing, in line
with the belief that States should have
greater responsibiilty, fell by the wayside.
Nor was action taken on scientific super-
grade positions for food and drugs; Indian
sanitation facilities; or the transfer of
Freedman's Hospital to Howard University
for the purpose of increasing facilities for
nurses and medical teacher training.
In the first revision of the social-security
laws since 1954, increased benefits of 7 per-
cent will go to 12 million retirees. Under
this increase the minimum benefit will rise
from $30 a month to $33, with an average
increase of approximately$4.75. Total ben-
efits payable to a family will be raised from
$200 to $254 a month. The first checks will
go out in February 1959,
Additional benefits go to the retired Per-
son whose earnings exceed $1,200 a year.
Those in this category will not lose benefits
for any month in which their earnings are
$100 or less. Previously, the maximum was
$80.
Federal contributions for public assistance
provide $197 million for this purpose. For
the first time disability benefits are made
retroactive. Dependent parents of a de-
ceased person may now draw benefits al-
though there may be a widow or child. In
addition, dependents of disabled workers
may now draw benefits and a person eligible
for Social Security disability benefits will be,
permitted to draw full benefits even though
drawing benefits from some other system.
There is an increase in the taxable wage
rate from $4,200 a year to $4,800, as well as an
increase in payroll taxes and an increase in
the tax rate for self-employed persons to per-
mit these larger benefits.
Housing
Congress enacted an emergency housing
bill providing a $1.8 billion housing pro-
gram designed to encourage the building of
an estimated 200,000 homes by extending
the VA home loan guarantee and 'direct loan
programs for 2 years; providing an extra $1
billion to the Federal National Mortgage As-
sociation for FHA and VA mortgages on new
homes where loans do not exceed $13,500;
providing an extra $500 million to the
Mortgage AssociAtion to be used to buy
mortgages- at the President's discretion to
stimulate the economy; and further provi-
sions for military housing. It also au-
thorized $150 million for direct GI loans and
$125 million more than Administration re-
quests for urban renewal programs over the
next 6 years. Added to this is $400 million
for college housing and a new fund of $250
million for other college needs.
Unemployment Compensation Extension
Congress heeded the President's request for
extension of unemployment compensation
and followed his recomMendation by making
the time limit 50 percent of any State limi-
tations. The formula for payments between
Federal and State funds was retained despite
agitation to place the entire burden on the
Federal Government.
Small business
(Congress' concern for the problems of
small business enterprises was reflected in
several measures. The Small Business, Ad-
ministration was made permanent. Its loan
funds were increased. It is empowered to
charter privately owned investment com-
panies for equity financing of small enter-
prises. And small business is the beneficiary
of substantial revision of the tax laws.)
Small business enterprises received sub-
stantial aid from the 85th Congress on a bi-
partisan basis.
, Small Business Administration Made
Permanent
-- After the operations of the Small Business
Administration had been extended several
times since its establishment by the Republi-
can Administration in 1953, this Congress
made it a permanent agency of the Govern-
ment. The revolving fund for business
loans was increased by $295 million, and the
maximum loan limit was raised from $250,000
to $350,000. The SBA was directed to assist
small firms in obtaining Government re-
search and development contracts.
Other important measures enacted by the
85th Congress to assist small business were:
Authorization for the Small Business Ad-
ministration to make disaster loans to small
business concerns suffering economic loss as
a result of excessive rain. The law amended
the Small Business Act of 1953 to add the
situation of "excessive-rainfall" to conditions
which may create a need for disaster loans,
and made certain technical changes regard-
ing drought eligibility.
Improvement of opportunities for small
business 'concerns to obtain a fair propor-
tion of Government purchases and contracts
and to facilitate procurement of property
and services by the Government. The Act
removed needless inconsistencies, complexi-
ties an inequities in Government procure-
ment procedures in order to improve small
business participation in Government con-
tract work.
Equity Financing for Small Business
A Small Business Investment Division was
established within SBA, and is authorized
to charter privately owned small business in-
vestment companies. An additional $250
million was authorized to the existing 're-
volving fund of SBA to provide the financial
assistance to help meet the initial capital
requirements of these new investment com-
panies. These small business investment
companies would, in turn, provide equity-
type capital to small business concerns
through the purchase of convertible deben-
tures. SBA is also authorized to make loans
to State, and local development companies to
enable them more effectively to assist small
businesses.
Tax revision
Amendments to the Internal Revenue Code
of 1954 provide tax revision for small busi-
nesses. This act provides ordinary-loss
treatment (up to $25,000 a year or $50,000
a year in case of a husband and wife filing
a joint return) where the original holder of
small-business stock se/ls it at a loss; ex-
tends the 2-year net operating loss carry-
back to a 3-year carryback; permits enter-
prises to write off 20 percent of the cost of
their depreciable, tangle personal property
(both new and used) in the year of acquisi-
tion; increases the minimum accumulated
earnings credit from $60,000 to $100,000; and
provides that where the estate of a decedent
consists largely of an interest in a closely
held business, the estate is to have up to
10 years for payment of the Federal estate
tax.
- The Small Business Administration itself
has established and put into operation an
effective program of helping small-business
firms throughout the country in the 5 years
since it was created.
The Agency has approved more than 11,000
loans, totaling more than half a billion dol-
lars; approved over 7,708 disaster loans for
more than $83 million; and awarded more
than 40,000 individual contracts totaling
more than $1,700,000,000 to small-business
concerns. /
It has Assisted countless thousands of ad-
ditional small firms with their individual
problems through counseling and by issuing
various publicationd designed to assist small
firms with all types of management and
technical problems.
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1958 CONGRESSIONAL RECORD � SENATE
leterans
, (Veterans' benefits and compensation in-
creased. Dependents, widows, and orphans
to get liberalized benefits. Housing aids ex-
tended. Education assistance- broadened.,
Supplemental funds voted for unemploy-
merit compensation. Memorial and museum
approved to honor American servicemen who
died at Pearl Harbor.)
Benefits and Compensation Increased
, Among- the more Important benefits en-
acted on behalf of veterans and their de-
pendents in the 85th Congress was legisla-
tion providing a 10-percent increase in
, compensation for veterans with service-con-
nected disabilities, and in allowances for
dependents of veterans who are 50 percent or
more disabled. Pensions for approximately
65,000 widows of the Spanish-American War,
4,000 Civil War widows, and 1,000 Indian
War widows were increased to $65 a month
for those over 70 sears of age, and to $76
a month if they were the wife of the veteran
during the period of his service; and pro-
portionate increases were provided for Mex-
ican War widows, of whom there are four
on the rolls, and for children. Eligibility for
widows' benefits was' liberalized to include
certain instances where a legal impediment
to pie marriage existed.
Housing and Education Aids Extended
Additional housing benefits for veterans
were provided by extending the VA home loan
guarantee and direct loan programs to 1960,
by provision of extra funds for direct VA
loans, for FNMA Purchase of VA mortgages
on new homes, and for purchase of military
housing mortgages.. (See subsection on
Housing in Personal and Public Welfare, and
section On National Defense.)
Other -legislation enacted in the 85th
Congress on behalf of veterans accomplished
the following: the Korean GI bill (Veterans'
Readjustment Assistance Act) 'and the War
Orphans' Educational Assistance Act were
clarified to make their benefits available to
veterans �and war orphans studying in the
Panama Canal Zone, and also to war orphans
in the Philippines; a supplemental amount
of $25 million was appropriated to make ad-
ditional unemployment compensation pay-
ments to veterans during 1958; and the
burial allowance for deceased veterans was
increased from $150 to $250. Congress also
consolidatedinto one act all of the laws ad-
ministered by the Veterans' Administration.
Pearl Harbor Memorial
Also, Congress approved the erection of a
memorial and museum at Pearl Harbor on
or near the hulk of the U. S. S. Arizona, in
tribute to �the 1,1'02 American servicemen
Who died on the ship December 7, 1941, 'and
whose remains cannot be recovered.
�
Foreign affairs
(Twice during the 85th Congress, the ad-
ministration, with strong bipartisan support,
acted vigorously to maintain peace, defend
small nations, and restrain aggressive com-
munism in the Middle East. This empha-
sized the need for mutual -security funds. In
other actions, Congfess condemned Com-
munist brutality and oppression in Hungary
and Red China's failure to account for
American prisoners in Korean war; resolu-
tions call for permanent U. N. police force;
legislation and treaties advance the atoms-
for-peace program; immigration law falls far
short of President's request.)
During both sessions, the 85th Congress
dealt with serious crises in foreign affair� in
addition to many other matters of inter-
national concern. The United States acted
vigorously for peace as an individual nation,
with its allies and friends, and by advancing
the efforts of the United Nations toward the
establishment of peace, law, and 'order.
Defending Small Nations in the Middle East
Following the Middle East crisis in Janu-
ary 1957, the President 'asked Congress for
authority to use American Armed Forces to
assist 'any Middle' East nation requesting
help against Communist aggression. After
considerable delay occasioned by Demo-
cratic demands for an investigation of
American policies, the Congress finally gave
the President substantially what he re-
quested. Supported by this authority the
President ordered the Sixth Fleet into posi-
tion to assist the Jordanian Government
while the United Nations acted to relieve
tension in the area.
Again in July 1958, when a second Middle
East crisis arose, the United States moved
American troops into the area at the urgent
request of the President of Lebanon. At the
same time, the United States pressed vigor-
ously for, action in the United Nations for
preservation of the peace and protection of
the independence of the threatened nations.
Mutual Security
Recurrent international crises of the
Soviet Union's stepped-up economic drive to
win uncommitted nations to communism
continued to make collective security vital
to American national defense and to the free
nations' resistance against aggression. The
85th Congress continued-to meet this need
by providing our allies with military sup-
plies and economic assistance though the
sums appropriated did not meet the Presi-
dent's request. (See National Defense and
Muttial Security.) Congress also authorized
the loan of certain naval vessels to friendly
foreign countries.
Congress Condemns Soviet Repression and
Brutality in Hungary
In House Concurrent Resolution 204, the
Congress condemned Russia for "brutal
forms of armed subjugation" in her suppres-
sion of the Hungarian revolt during 1956.
Again in June 1958, House Concurrent Reso-
lution 343 called upon the President to ex-
_press through the United Nations and
through all other appropriate channels "the
deep sense of indignation" aroused in the
United States by the announcenient of the
Communist regime in Hungary of the exe-
cution of Imre Nagy, former Hungarian
premier, and his colleagues, Pal Maleter, Joz-
sef Szilagyi, and Miklos Gimes. The resolu-
tion denounced these acts of barbarism and
perfidy of the Soviet Union and the Hun-
garian Communist -regime._
Other Resolutions Affecting Foreign Affairs
Resolutions adopted by the Senate or
House, or by the 2. bodies jointly, included:
condemnation of Red China for failing to
account for 450 American prisoners of) war
taken in Korea; favoring the creation of a
permanent United Nations police force; sup-
porting NATO membership for Spain; and
'.requiring the Secretary of State to submit
all agreements other than treaties to the
Senate within 60 days of execution.
Atoms for Peace
Following up the President's atoms-for-
peace proposals, the Senate approved the
treaty for American participation in the In-
ternational Atomic Energy Agency; and au-
thorized the exchange of atomic information
and materials with our military allies. Leg-
islation was also-passed approving a prelimi-
nary agreement between the United- States
and the six-nation European Atomie Energy
Community providing for the construction
of nuclear power reactors and for atomic re-
search and development. (See Atomic Energy
at Home and Abroad.)
Peaceful Exploration and Use of Outer Space
Congress also went on record favoring -in-
ternational action for the peaceful explora-.,
18075
tion and use of outer space. (See Missiles
and Space.)
Legislation Affecting International Finance.
Trade, and Development
Congress approved an amendment to the
Anglo-American financial agreement of 1945
providing a more flexible formula for repay-
ment by Great Britain of the $3.750 billion
loan. The Senate approved an agreement be-
tween the United States and Austria provid-
ing procedure for the validation of certain
Austrian bonds.
Congress also extended the Export-Import
Bank's lending authority for 5 years to June
30, 1963, the Export Control Act for 2 years
to June 30, 1960, and the reciprocal trade
agreements -program for 4 years to June 30,
1962. The new Trade Agreements Act per-
mits tariff cuts up to 20 percent below exist-
ing rates, but not more than 10 percent in a
single year; and allows the cuts to be made
at any time within 4 years beyond the end of
the act's extension, or up to June 30, 1966.
Congress may, by two-thirds vote, override
the President's disapproval of the Tariff Com-
mission's recommendations in escape-clause
cases. Weaknesses in the internal economy
due to excessive imports are to be considered
In determining whether imports should be
reduced to prevent harm to the national se-
curity. In escape-clause cases the President
is authorized to increase duties as much as
50 percent above the 1934 tariff level. The
President may also impose duties up to 50
percent ad valorem on imports now coming
in duty-free. ,
The Congress authorized an additional $10
million for completion of the Inter-American
Highway. The Senate approved a number of
treaties with foreign nations concerning
commerce, navigation, fisheries, .double taxa-
tion, and,sailtural relations.
Immigration
,The Democratic-controlled 85th Congress
failed to give President Eisenhower the com-
prehensive program he sought in the field of
immigratidn. The President requested such
changes as an updating of the census date of
the national origins quota system, authority
to transfer unused quotas under that sys-
tem, and certain other changes in immigra-
tion laws to relieve hardships. Instead,
Congress enacted some changes liberalizing
the McCarran-Walter Act which were de-
scribed as a "quarter loaf" of the President's
program. The act eliminates mortgages on
quotas under prior laws; revives unexpired
visas under the Refugee Relief Act; author-
izes the entry of an unlimited number of
adopted children over a 2-year period, pro-
vides relief in, hardship cases; gives non-
quota status to certain quota immigrants
including skilled specialists; 'and permits the
Government to waive some impediments af-
fecting the admission of certain aliens. An-
other act made it possible for some 30,000
Hungarian refugees to become permanent
residents of the United States.
REPUBLICAN ADMINISTRATION'S ACHIEVEMENTS
IN BRIEF, JANUARY 1953 TO ATJGUST 1958
Foreign affairs: Waging peace
Ended the stalemated war in Korea and
reversed the previous foreign policy that had
contributed to the loss of 600 million people
behind the Communist Iron Curtain in the
decade 1943 to 1953.
Avoided involvement in the hot war in
Indochina; took steps to aid Vietnam and
build up its army.
Held meeting at Geneva, Switzerland, with
the heads of Russia, Britain, and France to
pave the way for concrete actions to relieve
world tension. President Eisenhower took
the _initiative by his impressive offer to ex-
change full armament information under
adequate safeguards. Although Geneva fell
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18076 CONGRESSIONAL RECORD � SENATE. August 25
short of specific agreements and the general
understandings did not result in the solution
of the problems discussed, the meeting did
relax world tensions at the time.
Ratified mutual defense treaties with� the
Republic of China (Formosa), the Republic
of Korea (South Korea), and the Southeast
Asia Collective Defense Treaty (SEATO) ,
grouping together Australia, �New Zealand,
Pakistan, the Philippines, Thailand, Great
Britain, France, and the-United States. As-
sociated the United States with the Baghdad
Pact in the security and defense of the mem-
bers of the pact.
Ended the military occupation of Western
Germany and provided for the accession of
the Federal Republic of Germany to the
North Atlantic Treaty Organization.
Negotiated the Austrian State Treaty
(signed by Austria, France, the Soviet Union,
the United Kingdom, and the United States)
by which Austria was reestablished as an
independent state andothe military forces of
the Allied Powers and the Soviet Union were
Withdrawn.
Endorsed the President's authority to use
the Nation's Armed Forces for the protection
of Formosa and the Pescadores Islands, as a
move to preserve peace in the Far East. '
Developed the "Eisenhower doctrine" au-
thorizing, the President to use Armed Forces
to assist any nation or nations in the Middle
East requesting help in preserving their in-
dependence against armed, aggression from
any country controlled by international
communism; and exercised this authority to
assist Jordan in 1957 and Lebanon in 1958,
while strongly supporting United Nations
action for peace, stability, law, and order.
Continued economic and military aid to
the nations of the free world, with increas-
ing attention to Asia.
Extended the foreign trade agreements
program, permitting tariff reductions under
regulations designed to protect American
jobs and business. Also, provided fen*
American participation in the International
Finance Corporation designed to help na-
tions to develop their resources.
Assisted the new free government of Gua-
temala which removed the Communist
regime.
Took the initiative against communism
- in all parts of the world.
Reaffirmed official policy against Red
China's admission to the United Nations.
Supported a United Germany (resolution
of 83d Cong.) .
Condemned Soviet mistreatment of mi-
norities and callous disregard of human
rights (resolution of 83d Cong.).
Also condemned Russia for armed subju-
gation in Hungary in 1956; and again in
June 1958 called upon the President to ex-
press through appropriate channels the
"deep sense of indignation" aroused in the
United States by the execution of Imre Nagy
and other Hungarian nationals by the Com-
munist regime in Hungary (resolution of the
85th Cong.).
Moved for adoption by Western Hemis-
phere nations 6f the Caracas resolution de-
claring communism a threat to freedom and
pledging full consultation in the event of
aggression.
Negotiated arms pacts to strengthen Cen-
tral American countries against Communist
subversion.
Acted to oust Americans in the United
Nations who have served the Communist
cause.
Brought about a settlement of the oil_
controversy in Iran,, preventing the threat-
ened Communist subversion of that country.
Proposed an international pool of atomic
energy resources for peaceful uses. Ap-
proved a treaty by which the United States
will, participate with 79 other nations in
the International Atomic Energy Agency for
the application of atomic energy to indus-
try, agriculture, and medicine. Further, the
United States offered to furnish research
reactors and to make available power re-
actors (Euratom). Provisions were also
made for the exchange of atomic informa-
tion arid materials with our military allies.
Passed the Refugee Relief Act to admit,
over a 3-year period, up to 214,000 persons to
the United States in excess of the quota
limit. Liberalized the immigration laws to
afford relief in hardship cases, admit adopted
children, revive 18,000 visas that had expired
with the Refugee Relief Act, made other
changes benefiting an) estimated 60,000
aliens, and made it possible for 30,000 Hun-
garian refugees to become permanent resi-
dents in the United States.
Settled by negotiation the Italian-Yugo-
slav quarrel over Trieste which for years
had threatened to -cause war betweenthe
two countries.
Reiterated the traditional position of the
Senate in favor of self-government and self-
determination for all peoples in a move de-
signed to give hope to the enslaved peoples
of the satellite countries.
National defense; Instant readiness safe-
guards Nation's security
Developed the greatest military strength
the Nation has ever had, short of wartime,
with emphasis on continuous combat readi-
ness for any emergency.
Applied almost two-thirds of the Federal
budget to national security (military de-
fense, atomic energy development, stock-
piling of- strategic materials, military aid
abroad) compared with only 32 percent in
1950 just before Korea.
Put atomic and other new weapons into
the regular military arsenal for strategic and
tactical use.
Increased by 50 percent long-range heavy-
bomber striking ,power by increasing the
number of planes in heavy-bomber wings to
45 each (formerly 30).
Equipped all Air Force fighter wings with
jet aircraft; all medium-bomber wings with
B-47's, which have intercontinental capa-
bilities; and heavy-bomber wings (B-36's)
are being replaced by all-jet B-52's. An im-
proved model, B-52 has just begun to roll
off the production line.
Continued research toward nuclear-
powered aircraft.
Launched the first nuclear-powered sub-
marine Nautilus; others are following along.
The Nautilus made the first voyage in history
from the Pacific Ocean to the Atlantic
Ocean by way of the North Pole, pioneering
an underwater sea lane between the Eastern
and Western Hemispheres. This extraordi-
nary feat raised the prospect Of a new trade
route for commercial cargo Submarines
powered by atomic energy.
Brought the Marine Corps, consisting of
3 divisions and 3 air wings, to a high level of
combat readiness, increased nuniber of com-
bat planes on hand And added to Marine,
firepower with atomic weapons.
Installed Nike missile batteries for defense
of key American cities; developed the missile
master, the country's first electronic system
specifically for controlling and coordiniting
Nike batteries.
Completed reorganization of the Army into
pentomic divisions designed to exploit to
the maximum atomic warfare.
Built up the Reserves and National Guard
to the highest state of readiness yet, better
trained, organized, and equipped 'than ever
before.
Greatly strengthened our continental de-
fense; coordinated Army, Navy, and air units
under the Continental Air Defense Command
and improved fighter-interceptor forces and
antiaircraft weapons.
Brought our combat-ready strategic fight-
ing forces to their highest peak of prepard-
ness in all three services. Strategic Air Com-
mand, the Marines, and Strategic Army
Forces are ready for action on short notice.
' Completed the main portion of the Distant
Early Warning line which has gone into op-
eration and began construction on extensions
of the system. Extended warning protection
along the Atlantic and Pacific approaches by
constructing Texas towers (radar Wands)
and by Air Force and Navy airborne patrols.
Began reorganization of the Pentagon un-
der the act -which became effective August
6; 1958.
Abolished 192 joint committees in the De-
partment of Defense and continued investi-
gation to see whether more committees and
advisory groups could be terminated.
Continued military aid to help equip and
train forces of our allies; consisting of about
4,700,000 men, 2,500 combat vessels, and
32,000 aircraft (of which 14,000 are jets) .
Made changes to improve the morale of
service personnel, including pay raises,
medical care for servicemen's dependents,
liberalized benefits for survivors of service-
men and veterans, free college education for
soldiers agreeing to remain in service 3
years for each year of training. Placed mili-
tary personnel under the social security sys-
tem on a permanent basis. '
Developed a hydrogen bomb small enough
to be carried by a fighter-bomber with a
fighter delivery system more accurate than
low altitude bombing. ,
Developed a new germ-killing gas which
can disinfect entire buildings upon which
germs are dropped.
Let a contract for development of a liquid
fuel engine of about 1 million pound thrust.
Let contracts in proceeding on a priority
basis with an Air Force bomber dispersal
program to give 33 bases by end of 1961 ac-
commodating one heavy bomber squadron
per base.
Tightened the security risk program.
Made permanent the Missing Persons Act
which continues payments and family allot-
ments in the case of military personnel ab-
sent from their posts while designated as
missing.
Missiles and space
Proposed an independent agency th direct
nonmilitary space programs, which Congress
later authorized. A top-level advisory
`group, comparable to the National Security
Council, was authorized to assist the Presi-
dent on space problems.
Launched four earth satellites as part of
the United States participation in the Inter-
national Geophysical Year.
Ordered the Defense Department to work
on the problem of sending unmanned
rockets and satellites to the moon for the
purpose of exploration. Nearly 30 separate
projects involving almost $50 million have
been programed.
Proposed international agreement that
outer space should be used only for peaceful
purposes. �
Ballistic missile systems are receiving
' highest pri6rity: -Polaris submarine missiles
system, Atlas and Titan intercontinental
ballistic missiles, Thor and Jupiter inter-
mediate range missiles, and the antiballistic
missile Nike-Zeus.
Successfully test fired the complete Atlas
ICBM.
The Department of Defense is confident of
meeting the schedule calling for operational
availability of the Thor and Jupiter IRBM's
by December 1958. Under an agreement
with the United Kingdom, the Thor will be
deployed at launching sites on British soil.
Defense officials also expect to achieve op-
erational status of the Atlas ICBM during
calendaar year 1959, with Polaris and Titan
to follow later.
One of the most difficult problems with
ballistic missiles is the reentry problem.
Defense scientists have successfully recov-
ered two Jupiter IRBM nose cones and have
successfully tested a nose cone -which
traveled more than 5,000 miles.
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1958 CONGRESSIONAL RECORD � SENATE
Contracts have been let for development
of components of the solid propellant ICBM.
Approval was given for building a two-
station ballistic missile early warning sys-
tent and associated communications at an
estimated cost of $500 million. Construc-
tion is already underway on the first of these
stations.
Set up advanced research projects agency
in the Defense Department to direct military
space projects and weapons dstems of the
future.
' Set up the post of director of defense re-
search and engineering to supervise and co-
ordinate military research projects.
Atomic energy for peace and security
' Republican programs based on the prin-
ciples of developing atomic energy�with-
out Government monopoly�for peace, prog-
ress, and free world security have been an
outstanding success in the past 5 years, as
follows:
Enlisted free enterprise in a public-private
cooperative program under the Atomic En-
ergy Act of 1954 for the development of
peaceful uses of atomic energy at home.
Starting from 2 small civilian power reactor
experiments in 1953, there were 8 civilian
power reactors in fiscal 1958, producing 78,000
kilowatts. Fifteen more are under construc-
tion or scheduled for full operation before
1965. Four plants under construction rep-
resent a private investment of $250 million
and not a cent of taxpayers' money. For
eight jointly sponsored projects not yet un-
der construction, public funds of $150 mil-
lion or more than matched by private com-
mitments of $200 million.
Strongly supported public and private re-
search on nuclear power production and
many other peaceful uses of atomic energy
which have resulted in many benefits. Since'
1953, both the number of users and the dol-
lar volume of sales of radioisotopes have
trebled. A million medical patients are be-
ing diagnosed or treated with radioisotopes
each year. In industry, saving through
isotope use is five times what it was in 1953.
Radioisotopes have such varying uses as lo-
cating and treating tumors, improving crops,
measuring the thickness of tin cans, X-ray-
ing castings, locating leaks, preserving food,
and eradicating pests.
Launched the atoms-for-peace program
calling for international cooperation in using
atomic energy for peace, and implemented
it through bilateral and multilateral agree-
ments, and through the International
Atomic Energy- Agency proposed by the
President before the United Nations in 1953,
and approved by Congress in 1957. A multi-
lateral agreement with the six-nation group
Euratom was negotiated and approved by the
Congress in 1958.
. Made the maximum contribution to na-
tional and free world defense and security by
increasing many fold the number of atomic
weapons, by improving their design to reduce
radioactive fallout and meet specific military
requirements, and by permitting a greater
exchange of atomic military information and
materials with allied nations.
National economy
Established a high level of economic ac...
tivity�without a war.
Gross national product, personal income,
and savings climbed to new. high records.
Every year since 1952 saw well over a
" million housing starts.
Decline in farm income was checked.
Prices and income rose. ,
Small Business Administration became a
permanent agency.
Administration refused to panic over busi-
ness downturn by launching Democratic-
favored spending sprees. Instead� it put in
operation constructive and well-planned
programs, which included t1:4 following:
Defense contracts accelerated to $13.4 bil-
lion in first half of 1958 as against $7.9
billion in last half of 1957. Calendar year
totals: 1 9 5 8�$23.6 billion; 1957�$17.8
billion.
Spending increased in Federal highway
programs by $800 million over last fiscal
year and plans call for an additional increase
of $600 million in fiscal 1959.
Acceleration of authorized civil .works by
$200 million in current fiscal year.
Additional $50 million provided in capital
grant fundi for urban renewal projects.
Reserve requirement of Federal Reserve
banks reduced one-half of 1 percent on Feb-
ruary 20, 1958, thereby freeing additional
$3 pillion for lending.
FHA-insured mortgage down payments re-
duced, encouraging new housing.
Defense Department directed to funnel
contracts to distressed labor areas and to
small business generally. In February 1958,
$102 million in Federal contracts were set
aside for small business, double the amount
provided in February 1957.
Speed-up ordered in $1 billion worth of
urban renewal loans and grants handled by
Housing and Home Finance Agency.
President ordered speed-up of $300 million
in HHFA loans for college housing.
Interior Department stepped up general
construction program by $25 million.
Unemployment compensation benefits ex-
tended.
Military construction programs acceler-
ated.
Labor: Advancing interests of working men
and women
Gave tax cuts which were the equivalent
to a wage increase for every taxpayer;
workers now keep more of what they earn.
Promoted harmonious labor-management
relations, resulting in less time and wages
lost on account of strikes; since Republicans
took office there has been greater worker-
industry peace than in any comparable post-
World War II period.
Extended unemployment compensation in-
surance coverage to 4 million more people�.
the first major extension since the program
began.
Urged and assisted State and local action
on the growing migratory labor problem and
developed draft legislation to regulate its
interstate transportation.
Established a program of unemployment
compensation for approximately 21/2 million
Federal workers.
Supported the passage of a 10-percent pay
raise for all classified and legislative
employees.
Urged States to modernize their unemploy-
ment compensation; 23 States increased job-
less pay benefits and 7 lengthened the period.
Recommended and supported legislation
raising the minimum wage.
Blacklisted, minimum wage violators and
recovered back wages for underpaid em-
ployees�in the most vigorous enforcement
program since passage of the Davis-Bacon Act
of 1935.
, Recovered for workers, in 1955 alone, more
than $6 million due them from employers
who violated either the Fair Labor Standards
Act or the Walsh-Healey Act.
Speeded procedures of National Labor Re-
lations Board for handling elections, settling
disputes, and disposing of unfair labor prac-
tice cases.
Provided more effective attention to
problems of women workers through newly
created post in the Labor Department of
Assistant to the Secretary for Women's
Affairs.
Expanded vocational rehabilitation pro-
gram; strongly enforced child-labor laws and
health and safety standaids; pushed ap-
prentice-training and on-the-job training
programs; helped veterans return to pre-
service employment.
Expanded its occupational safety , train-
ing program and assisted the States in pro-
18077
moting programs to provide safe working
conditions.
Vigorously supported legislationito bring
about more union democracy and greater
freedom for rank and file union workers.
Agriculture;, Prosperity and freedom for
farmers
The Republican administration has done
a remarkably good job of untangling the web
of agricultural problems created by the
previous administration- and heading the
whole agricultural economy toward pros-
perity and freedom, as follows:
Halted the spiraling inflation which from
1940 to 1952 sent the index of prices paid
by farmers up more than 100 percent. From
January 1953 to June 1958, this index rose
Only 7 percent.
,Continued to attack the basic cost-price
squeeze problem to_ the benefit of farmers.
Realized net income of farm operators in
the first half of 1958 was at an annual rate of
about $13.3 billion-22 percent higher than
in the first half of 1957. This was the greatest
increase from a year earlier since the end of
World War II when price controls were
eliminated.
Stopped the postwar downtrend in farm
prices. Prices received by farmers in the
first half of 1958 were 8 percent above a year
ago and 10percent above 2 years ago.
Helped farmers cut their debts. Farmers
have less than $11 in debts for each $100
of assets. In 1940 the ratio was $19 for each
$100. Farm assets of $188 billion as of Jan-
uary 1, 1958, are at an all-time high. Farm
ownership is, also at a record high, 2 out
of every 3 farms being free of mortgage debt.
Enacted in 1954 a farm program providing
some flexibility in formerly rigid price sup-
ports and acreage controls, which had piled
up surpluses and depressed farm prices.
Enacted during the same Republican 83d
Congress the now widely popular Public Law'
480, providing both an effective domestic'
surplus disposal system and a sound foreign
relations program.,, About $1.5 billion worth
of surplus commodities have been sold for
foreign currencies' and another $1.4 billion
bartered for strategic materials under the
law.
Achieved notable success in other disposal
programs also. In the 2-year period ending
June 30, 1958, surplus commodities with a
cost value of about $8 billion were moved
out of Government storage into consump-
tion. Farm exports in fiscal 1957 set a new
record of $4.7 billion.
Started in 1955 the cooperative Federal-
State rural development program, which
despite Democratic delay, has done much to
assist rural people on the lower rung of the
economic ladder by helping them to help
themselves.
Enacted the Soil Bank -program in 1956,
after fighting off Democratic attempts to
return to rigid supports and controls. The
acreage-reserve part of the Soil Bank, now
drawing to an orderly close despite Demo-
cratic attempts to kill it prematurely, served
well in preventing the surplus production in
1957 of 2 million bales of cotton, 6 million
hundredweights of rice, 93 million pounds
of tobacco, 225 million bushels of corn, and
175 million bushels of wheat. The conser-
vation-reserve part of the Soil Bank con-
tinues at higher payment rates to help curb
overproduction while -conserving soil and
water resources for future needs.
Inaugurated in 1956 the Great Plains pro-
gram to combat wind erosion, dust stcirms,
and floods in 10 States most often beset by
these disasters. About 600 contracts for re-
grassing and other conservation programs
have been signed, involving 2 million acres.
Brought soil and water conservation ac-
tivities through these and other programs to
levels never before equaled, and extended
more disaster and drought aid to farmers
than ever before.
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18078 CONGRESSIONAL RECORD � SENATE August 25
Amended the internal revenue law to per- '
rait farmers to deduct expenditures for in-
stalling certain soil and water conservation
practices. Saved farmers $60 million a year
by repealing tax on gasoline used in farm-
ing operations.
" Extended social-security coverage to farm
owners and farmworkers.
Returned the Farm Credit Administration
to the control of farmers and in general
made the agricultural credit system more
responsive to farmers' requirements.
Provided larger loan authorizations for
rural electrification loans and for rural tele-
phone loans.
Expanded the special school milk program
so that millions of additional children could
receive this valuable addition to their diets.
Extended the Sugar Act and the Wool Act,
and extended and expanded the� brucellosis
control program.
Established the Agricultural Marketing
Service in the Department of Agriculture re-
organization of 1953 to give greater emphasis
to marketing and distribution of farm corn-
modities.
Expanded research activities to develop
new crops, new uses for crops, new.markets,
and reduced prodUction costs.
Enacted in -1958, after still more Demo-.
cratic attempts to-increase Government in-
terference, a program for cotton, rice, corn,
and feed grains which is partly in line with
Republican farm freedom policies.
Natural resources and public works: part-
nership instead of paternalism
Authorized the joint United States-Cana-
dian St. Lawrence seaway project. -
Authorized comprehensive program for
deepening and improving connecting chan-
nels between Great Lakes to accommodate
ocean-going vessels through the St.. Law=-
rence seaway.
Approved construction of St. Lawrence
River power project by State of New York
and Province of Ontario, expected to gen-
erate second largestlamount of power of any
similar project in the country.
Approved 13-year $82.9 billion highway
construction and improvement program in-
volving 440,000 miles of United States high-
ways and roads. Total program is largest
public works project ever authorized in
United States history.
Increased Federal emergency relief high-
way funds for aid to States in which roads
and bridges were damaged or washed out by
hurricanes and floods.
Approved $10 million in funds for Inter-
American highway.
Authorized a 10-year $500 million water
pollution control program, providing grants-
in-aid to States and -municipalities to con-
struct plants to purify polluted streams and
Other water sources.
Authorized a nationwide lease-purchase
program to build new post offices, custom-
houses, and other Federal buildings (pro- -
gram rejected-by 85th Congress).
Authorized the third largest public power
dam in the Nation�Priest Rapids Dam on
, the Columbia River; authorized hundreds
of navigation, flood-control, beach erosion,
and other river and harbor projects.
Authorized Federal construction ,of upp-er�
Colorado River water storage project cover-
ing 110,000 square miles in five-State area
for eventual building of scores of multiple
_ purpose darns and some 35 reclamation
projects.
Authorized a $90 million Mississippi Gulf
sea level canal.
Approved survey of tides at Passama-
� quoddy Bay, Maine, for feasibility of hydro-
electric power.
Authorized military public works program
of between $1 billion and $2 billion in each
session of the last three Congresses and ap-
proved appropriations for construction of
numerous Army, Navy, Marine, and Air
Force facilities.
'Approved flood and hurricane disaster
measures designed to house the homeless
and to reestablish communications and
transportation facilities.
Authorized scores of new reclamation, in.
rigation, and power projects.
Permitted the Federal ,Power Commission
to license local public utility districts and
,private power companies to pay for and
construct their own power projects.
Extended Water Facilities Act from 17
States to 48 States 'in a move to conserve
the Nation's water and soil resources.
Authorized research program for feasible
uses of saline water for human and com-
mercial purposes. � �
Permitted Federal loans to local irriga-
tion districts for construction, on Federal
reclamation projects, of water distribution
systems to be locally owned and operated.
Permitted multiple mineral development
of the same tracts of public lands to en-
courage domestic sources of vital materials.
Provided for upstream watershed protec-
tion and flood prevention under local con-
trol, reversing a 20-year trend.
� Rejected, by a majority vote in the Sen-
ate, an attempt to prevent a private utility
from constructing Hells Canyon Dam on the
Snake River as approved by the Federal
Power Commission.
Extended minerals purchase program to
. include incentives for small mine operations.
Inaugurated long-range programs for
mining and metallurgical research; inten-
.sified study of radioactive metals; con-
tinued synthetic fuels research; gave Fed-
eral Government more authority on surface
resources in granting mining deeds.
Passed measures for additional conserva,
tion and propagation of fish and for "the
,sprotection of grazing lands and wildlife
refuges.
. Approved extension of Federal Aid Air-
port Act to authorize a four-year, $252
million program for annual matching funds
to provide adequate and safe airports.
Approved conservation programs of many
types, including improvement of western
grazing lands through reseeding prograins,
water-spreading- systems, and encourage-
ment of soil and moisture conservation
practices by range users.
Returned to the States their rights to
submerged lands and resources off their
coasts to their historical boundaries.
Authorized $100 million Oroville Dam
and Reservoir project dn Feather River in
partnership with State of California.
Authorized partnership plan for San An-
gelo irrigation municipal water project in
Texas.
Established National Outdoor Recreation
Resources Review Commission to administer
administration's 10-year development pro-
grams; namely Mission 66 and Operation
Outdoors, under the National Park Service
and the Forest Service respectively.
Stimulated oil and gas leases of inland
Underwater areas of Alaska.
Authorized Massachusetts-Connecticut
flood-control compact.
Authorized construction of four units of
Chief Joseph Dam project.
Authorized water conservation projects in
New Mexico and Texas.
Limited withdrawal of public lands by De-
fense Department.
Encouraged phosphate production.
Approved Merrimack River flood control
compact.
Granted consent for Little Missouri River
compact.
Personal and public welfare
General and Public Health
Established first Health, Education, and
Welfare Cabinet position.
Enacted 1954 amendments to social secu-
rity extending coverage to over 13 millibn
more people.
Inaugurated many new health measures,
Including aid for building more nursing
homes and chrOnic disease hospitals.
7 Greatly expanded vocational rehabilita-
tion.
Increased medical research into major
causes of death and disability.
" Expanded -training of practical nurses;
provided funds for graduate training for
public health personnel and for nurses plan-
ing careers in teaching, research, or admin-
istration.
Expanded the hospital survey and con-
struction program with emphasis on build-
ing chronic disease_hospitals, nursing, and
convalescent homeefor the chronically -ill,
aged. and physically disabled; established
diagnostic and treatment centers; and pro-
vided special facilities for vocational reha-
bilitation.
Increased funds for costs of medical care
for the aged, blind, disabled, and for de-
pendent children.
Enacted a 5-year, $25 million program for
research and technical assistance for the
problem of air pollution.
Extended and strengthened Federal-State
water_pollution control program.
Provided grants to States to support exper-
iments, demonstrations, and studies to im-
prove the care and treatment of the men-
tally ill.
. Developed and provided funds for the Salk
poliomyelitis vaccine program. '
Greatly strengthened the Food,' Drug, and
Cosmetic Administration to increase the
safety and purity of foods, drugs, and cos-
-. metics.
Enacted a stringent Narcotics Control Act.
Extended school milk program to summer
camps and other nonprofit organizations.
, Initiated program for research in weather
� modifitation.
Liberalized the formula for Federal aid to
States in public assistance programs.
Created Federal Council on Aging to meet
the needs of our rapidly increasing elder citi-
zens in the areas of income maintenance,
medicine, mental health, and rehabilitation.
_Education
Called White House conference on educa-
tion, the first in history. .
Accelerated school construction.
Initiated teacher program to cope with
teachers shortage.
Accomplished higher rural school enroll-
ment by strengthening child labor provisions
of Fair Labor Standards Act.
Appointed committee of national leaders
to consider ways and means of increasing
Nation's supply of technically trained man-
power.
Continued Federal aid in schools affected
by Federal activities.
Extended veterans' educational benefits.
Initiated Fedetal and State study of edu-
cation' beyond high school.
Initiated program for 4-year science schol-
arship program.
Initiated legislation providing funds for
grants-in-aid to public and ..nonprofit ac-
credited schools of public health training
and in administration of State and local
health programs; for Federal grants to each
State to aid development of educational
television; and for out-service training for
Federal employees to improve efficiency.
Authorized funds to develop- library serv-
ices in rural areas.
Authorized establishment of educational
assistance program for orphans of World
War I, World War II, and Korean conflict.
Set up National Library of Medicine.
Social Security
Extended coverage to farm workers, pro-
fessional self-employed; to employees of
State and local governments and ministers
on a voluntary basis; as well as to members
of the military services, farm owners, and
operators.
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1958 CONGRESSIONAL RECORD � SENATE
Extended benefits to retired persons, per-
mitting�them to earn $1,200 a year without
losing social security benefits and removing
all restrictions on earnings for those retirees
� over 72 years of age.
Extended benefits to totally disabled per-
sons at age 50 and also to widows by lower-
ing the age requirement to 62.
Housing
Extended FHA-insured loan repayment
time, raised loan limits on new and old
house values, and lowered minimum down
payments. �
Continued and improved home and farm-
house loan programs.
Enacted laws for FHA insurance on private
construction of rental housing at AEC sites
and permanent military installations.
lig Authorized many thousands of additional
'federally aided public housing units.
Government finance and taxation
Stimulated national prosperity; main-
tained the value of the dollar; put restraints
on inflation; checked the recession.
Achieved two consecutive balanced budg-
ets. In fiscal 1956; the surplus totaled
$1.626 billion; in 1957, $1.645 billion. Only
three times in the previous 20-year period
of Democratic administration was the budget
balanced. It was done in fiscal years 1947
and 1948, as the result of appropiation cuts
made by the Republican 80th Congress, and
in fiscal 1951, resufting from a "windfall"
cutback from Korean war spending. ,
Reduced Government spending each year
well below the $74.3 billion spent .in fiscal
1953, Truman's last budget year.
Extended the maturity of the Federal debt;
moved more of the debt away from banks,
where it contributed to inflation, and into
the hands of long-term investors.
Tied in debt management actions with
Federal Reserve System moves to keep the
supply of money and credit in line with the
needs of the country.
Present unbalanced budget (fiscal 1959)
grows out of space age challenges and na-
tional defense needs.
New records set in savings bonds_ sales,
reflecting public confidence in the country's
economic future and in the Government's
fiscal policies.
Gave the American people a whopping $7.4
billion in tax cuts in 1954�the first tax cut
since the Republican 80th Congress in 1948�
including:
Three billion dollar cut in individual in-
come taxes (an average of 10 percent).
One billion dollar cut in excise taxes on
household appliances, cosmetics, and other
items of everyday use. �
Two billion dollar cut by abolishing the
excess profits tax which was restricting the
expension of business and jobs.
One billion, four hundred million dollar
cut by, liberalized deductions and fairer tax
treatment of millions of persons and thou-
sands of businesses under the 1954 tax code.
Substantially revised taxes on small
business.
Revised budgeting practices to prevent
large carry-over of unspent funds.
Government and Civil Service
Checked the New Deal-Fair Deal trend
toward centralization of power in Washing-
ton. '
Replaced dictatorial actions, which tried
to draft striking workers into the Army and
seized private property illegally, with con-
stitutional government.
Sold to private enterprise 25 federally
owned synthetic rubber plants and the In-
land Waters Corporation; and disposed of
many business-type commercial enterprises
conducted by the Defense Department and
divilian agencies in competition with private
enterprise. Property of substantial value
No. 149-5
thereby was returned to local and State tax
rolls.
Put into effect 14 reorganization plans to
improve the operations and efficiency of Gov-
ernment departments and agencies, and to
lower the cost of government.
Established the second Hoover Commis-
sion to study Government functions and op-
erations, and the Kestnbaum Commission
to study Federal-State-local functions and
fiscal resources and to recommend proper
allocation thereof. Government depart-
ments and agencies, wherever possible with-
out legislation, have since implemented
many of their recommendations (to improve
the executive branch). It has been esti-
mated that through 1957 nearly a pelf bil-
lion dollars had been saved by implement-
ing Hoover Commission recommendations. '
Modernized the Post Office Department,
making effective use of management prac-
tices successfully developed by private in-
dustry, and substantially reduced its chronic
deficit.
Brought about long-needed improvements
In the civil service and in various govern-
ment agencies; effected pay raises for Fed-
eral employees. Hundreds of thousands of
Federal employees, who had been under a
system of indefinite appointrhent with few
rights, have won career status under an im-
proved appointment system. Since Jannary
1953 -the competitive civil service has -been
extended to cover nearly 40,000 additional
Jobs. The percentage of all Federal jobs
under the classified civil service has risen
from 84 percent as of March 1, 1953, to 86
percent as of May 1958.
Provided for Federal ernployees low-cost
group life insurance, with the Government
sharing the cost; higher retirement bene-
fits; unemployment compensation coverage;
higher travel allowances; fairer overtime
pay; longevity pay increases; and incentive
awards. -
Civil rights: Ending racial discrimination
Ended all segregation in the Armed Forces,
veterans' hospitals, schools on military
posts, and Government contracts. .
Ended segregation in restaurants, theaters,
hotels, schools, and places of amusement in
the Nation's Capital.
Ended segregation in employment con-
tracts to which District of Columbia is a
party. .
Prohibited (by Interstate Commerce Com:
mission) discrimination in - interstate bus
and train transportation. ,
Protected Jury-trial procedures by prohib-
iting recordings in Federal grand- and petit
jury deliberations.
Established President's Committee on
Government Employment Policy to assure
nondiscrimination in Federal jobs. A re-
cent survey of Federal employment in a
number of key cities indicated that 24 per-
cent of Federal positions were held by mem-
bers of minority groups.
Established the Committee on Govern-
ment Contracts (headed by Vice President
NIXON) to prevent discrimination in Govern-
ment contract jobs, with the result that for
the first time white-collar jobs are available
to Negroes in public utilities, the chemical
and aircraft industries, and the-Federal Re-
serve System.
Announced refusal through Housing Ad-
ministrator of Federal aid to cities default-
ing in obligations to minority citizens.
Upheld Federal court processes in Little
Rock, Ark.
Pressed for the first legislation in 82 years
dealing with color and racial discrimination
and established the bipartisan Commission
on Civil Rights (originally proposed by Pres-
ident Eisenhower), as authorized by the
Civil Rights Act of 1957. The Commission
will investigate and report on alleged depri-
vations of voting rights, and study and ap-
18079
praise laws, policies, and legal developments
constituting denial of the equal protection
of the laws.
For the first time in history, Negroes were
appointed to serve in high positions such
as Assistant Secretary of Labor, Presidential
Assistant, and chairman of a presidential
committee; since the beginning of 1953, 300
Negroes have been appointed to positions of
responsibility in the Federal Government.
Veterans
Granted 5 percent increase in compensa-
tion in 1954 for disabled veterans and their
dependents.
Granted 10 percent increase in compensa-
tion -in 1957 for service-connected disabled
veterans, and for dependents of veterans
disabled over 50 percent.
Provided increased death compensation
benefits in 1956 to survivors of veterans who
died of a service-connected cause, such pay-
ments to be related to rank and pay.
Granted pension increases to widows of
Spanish-American War, Civil War, Indian
War, and Mexican War.
� Liberalized criteria for determining eligi-
bility of certain widows for pension benefits.
Provided farmhouse loan programs for vet-
erans; suported legislation liberalizing direct
farmhouse loans and permitting Government'
guaranteed loans to veterans for farmhouse
purchase, construction, and_repair.
Extended VA home loan guaranty and di-
rect loan programs to July 25, 1960; provided �
extra funds for direct VA loans; and for
FNMA purchase of VA mortgages on new
homes.
Gave Korean veterans the same benefits
and preferences as World War II veterans for
civil service eligibility, war housing, home-
steading, and GI 'training; extended period
for education and training benefits to Janu-
ary 31, 1965; made clear that training bene-
fits for Korean veterans and war orphans ex-
tended to Panama Canal Kone, and also to
Philippines for war orphans.
Extended period during which 'veterans
suffering loss of one or more limbs or perma-
nent impairment of vision could apply for
$1,600 payment on an automobile; and ex-
tended eligibility to include veterans whose
qualifying disability occurred subsequent to
discharge and who applied within a certain
period.
Consolidation into one act extensive body
of existing laws pertaining to v-eterans and
their dependents; provided automatic re-
newal of veterans' term insurance policies
and simplified handling.
Increased funds for building veterans' hos-
pitals to record amount; speeded construc-
tion.
Appropriated additional $25 million for
unemployment compensation payments to
veterans.
Approved erection of U. S. S. Arizona me-
morial and museum at Pearl Harbor in trib-
ute to 1,102 American servicemen who died
aboard ship.
Communism in United States combated
Inaugurated an era of cooperation be-
tween Congress and the Executive in cora- .
bating domestic communism.
Enacted long-needed Communist control
laws which (1) outlaw the Communist
Party; (2) grant immunity tO witnesses be-
fore congressional committees; (3) impose
heavier penalties .for concealing persons
from arrest; (4) impose heavier penalties on '
bail jumpers; (5) deny a Government pen-
sion to any Federal employee convicted of a
felony; (6) revoke the citizenship of per-
sons convicted under the Smith Act of ad-
vocating overthrow of the Government by
force or violence; (7) make peacetime spy-.
tag a capital offense; and (8) require reg-
istration of all printing presses owned or
used by Communists.
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18080 CONGRESSIONAL RECORD � SENATE
Set up Internal Security Division in the
Justice DepartInent to give exclusive atten-
tion to vigorous prosecution of antisubver-
sive laws.
Obtained Convictions of 71 persons under
the Smith Act.
Ordered Communist Party to register un-
der the Internal SecuritY Act.
Deported more subversive aliens in 31/2
years than during entire 20 years of Demo-
cratic control.
Weeded out security risks from Federal
jobs.
Vigorously pushed congressional investi-
gation of various Communist activities.
Reaffirmed determination to pursue con-
gresbional probes by joining Democrats in
January 1955 in passing Senate Resolution
18 which declared that its appropriate com-
mittees should vigorously investigate the
Communist international conspiracy.
Revised and improved security system in
tGovernment.
INCREASE IN DIVERSION OF WATER
FROM LAKE MICHIGAN INTO THE
ILLINOIS WATERWAY
The Senate resumed tie consideration
of the bill (H. R. 2) to authorize the
State of Illinois and the Metropolitan
Sanitary District of Greater Chicago,
under the direction of the Secretary of
the Army, to test on a 3-year basis the
effect of increasing the diversion of
water from Lake Michigan into the
Illinois Waterway, and for other pur-
poses.
Mr. SPARKMAN. Mr. President, will
the Senator yield?
Mr. PROXMIRE. Mr. President, I ask
unanimous consent that I may yield to
the Senator from Alabama for 1 minute,
without losing my right to the floor.
Mr. McNAMARA. Mr. President, I ob-
ject.
The VICE PRESIDENT. Objection is
heard.
Mr. MORTON. Mr. President, will the
Senator yield?
Mr. PROXMIRE. Mr. President, I ask
unanimous consent that I may yield to
the Senator from Kentucky without los-
ing my right to the floor.
The VICE PRESIDENT. Without ob-
jection, it is so ordered.
Mr. MORTON. I have tried my best
to help the 'Senator on this matter. I
should like to inquire how long the Sen-
ator will speak, because I am going home.
When may I expect to be awakened?
Mr. PROXMIRE. When I said I had
a great deal of documentation to make,
I meant that it will take a long, long
time. I do not know how long my voice
will hold up, but it will be a long, long
time.
Mr. MORTON. Does the Senator
mind very much if I check out now?
Mr. PROXMIRE. That is all right.
Mr. MORTON. Kellogg 7-1704.
[Laughter.]
Mr. JOHNSON- of Texas. Mr. Presi-
dent, will the' Senator from Wisconsin
yield to me to present a resolution?
Mr. PROXMIRE. I ask unanimous
consent that I may yield to the Senator
from Texas, without my 'losing my right
to the floor, so that the Senator from
Texas may present a resolution. ,
The VICE PRESIDENT. Without ob-
jection, it is so ordered.
NOTIFICATION TO THE PRESIDENT
Mr. JOHNSON of Texas and Mr.
KNOWLAND, the committee appointed
on the part of the Senate to wait upon
the President of the United States, ap-
peared in the center aisle, and Mr.
JOHNSON of Texas said: Mr. President,
your committee, appointed to join a
similar committee of the House to call
upon the President and to notify him
that the two Houses have completed the
business of the session, report that the
Pxesident advised them that he had no
further communication to make to theth.
ADJOURNMENT SINE DIE
Mr. JOHNSON of Texas. Mr. Presi-
dent, I send a resolution to the desk and
ask for its immediate consideration.
The VICE PRESIDENT. The resolu-
tion will be read for the information of
the Senate.
The resolution (S. Con. Res. 123) was
read- as follows: -
Resolved by the. Senate (the House of
Representatives concurring), That the two
Houses of Congress shall adjourn on Sunday,
August 24, 1958, and that when they adjourn
on said day, they stand adjourned sine die.
The VICE PRESIDENT. Is there ob-
jection to the present consideration of
the resolution? The Chair hears none.
Without objection, the resolution is
agreed to.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that I may be
allowed to insert five articles on different
subjects in the CONGRESSIONAL RECORD to
be printed after adjournment.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
INCREASE IN DIVERSION OF WATER
FROM LAKE MICHIGAN INTO THE
ILLINOIS WATERWAY
The Senate resumed the consideration
of the bill (H. R. 2) to authorize the
State of Illinois and the Metropolitan
Sanitary District of Greater Chicago,
under the direction of the Secretary of
the Army, to on a 3-year basis the
effect of increasing the diversion of
water from Lake Michigan into the Illi-
nois Waterway, and for other purposes.
Mr. DOUGLAS. Mr. President, will
the Senator yield for a question?
Mr. PROXMIRE. I yield to the Sena-
tor from Illinois for a question,
Mr. DOUGLAS. Does the Senator re-
member that earlier in the evening the
Senator from Illinois stated that the op-
ponents of the diversion bill were or-
ganized for a filibuster?
Mr. PROXMIRE. I recollect that
statement by the Senator from Illinois.
I might say that this is an extremely
complicated and difficult and compre-
hensive subject, and it will take me a
very long time to explain it. I do not
know the definition of a filibuster.
However, I have a long list, drawn up
for me by the Library of Congress, which
includes many distinguished Senators,
including some of the most outstanding
on this side of the aisle, who are very
good friends of mine, and who haVe en-
gaged in discussion of bills for 12 days,
August 25
13 days, and, in one case, for 16 days. I
feel tliat to discuss the pending bill for
another 24 or 36 hours does not con-
stitute a filibuster in the sense that we
have had other proposed legislation dis-
cussed at much greater length.
Mr. ERVIN. Mr. President, will the
Senator yield?
Mr. PROXMIRE. Mr. President, I
ask unanimous consent that I may yield
to the Senator from North Carolina for
an observation, without losing my right
to the floor.
The VICE PRESIDENT. Without ob-
jection, it is so ordered.
Mr. ERVIN. Mr. President, I merely
wish to say�
Mr. JOHNSON of Texas. May we
have order in the Chamber?
The VICE PRESIDENT. The Sen-
ate will be in order.
Mr. ERVIN. I merely wish to say to
the able and distinguished junior Sena-
tor from Wisconsin, whose views on this
matter I support, that if any, Senator
who lives below the Mason-Dixon line
had pursued his course in debate, it
would have been sufficient evidence be-
yond a reasonable doubt to prove that he
was guilty of running a filibuster.
Mr. PROXMIRE. I apprediate the ex-
pression of my friend from North Caro-
lina. Anytime be wishes to talk 24 hours
on a bill, I certainly shall not consider it
a filibuster. The Senate has discussed
bills many times on several occasions for
longer than the time that will be ex-
pended on this bill.
Mr. JOHNSTON of South Carolina.
Mr. President, will the Senator yield?
Mr. PROXMIRE. I ask unanimous
consent 'that I may yield to the Sena-
tor from South Carolina for a statement,
without losing my right to the floor.
The VICE PRESIDENT. Without ob-
jection, it is so ordered.
Mr. JOHNSTON of South Carolina.
The Senate has a rule villereby we may
engage in extended debate, and the Sena-
\tor is exercising that right. Is that not
correct?
I Mr. PROXMIRE. The Senator is
correct. I thank the Senator.
Mr. JOHNSTON of South Carolina.
That being so, I assume that the Senator
would not be in favor, of abolishing that
rule. [Laughter.]
Mr. PROXMIRE. If the distinguished
Senator wishes to invoke cloture tonight,
I shall be delighted to support him.
Mr. JOHNSTON of South Carolina.
No, no. I wish to clarify that point. I
am in favor of any Senator speaking as
long as he wishes to speak. [Laughter.]
Mr. SPARKMAN. Mr. President, will
the Senator yield to me?
Mr. PROXMIRE. Mr. President, I
ask unanimous consent that I may yield
to the Senator from Alabama without
losing my right to the floor.
The VICE PRESIDENT. Without
objection, it is so ordered.
AUTHORIZATION FOR COMMITTEE
ON BANKING AND CURRENCY TO
FILE TWO REPORTS
Mr. SPARKMAN. Mr. President, I
ask unanimoUs consent that the Com-
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CONGRESSIONAT
D- SENATE 4ugu8t.
a ea �,,, aim.- Committee Lkw
t s h .latnitteal a re I.
�1,',sr. of ,e ;,vret�metyi
�.!�ee t a reiaatcat -"e '.Fr
I :a
us corea :rung tae atomic �
a a araaaanaati 4.11greaamail reVIeW of
tv,r L_,r-oteeta with
� .tis Thus bill
!1;t. . al -lea. la. 958 and was
oytoe area,,leta AllgUSt 4 1960
in ,14.1,Ati.n: to tne t,fltIaI fatcal amhariza�
aaa leeasiation ;,,rekiS$11 ti prealott" sti�
-aaaiant aere app.avect by the Gortgresa
It.. natal la5a autt.ort Sae increaseci
aa. an, aar et Safi mi.l.on far the con-
stractial, ai a taNd pattotype destroyer nu-
propulsion plant to be constructed at
We., Milton. N Y The bill passed the
...-,�-�f�nate on May 7. 19h8. attd was approved
May it. 1958 Public Law 86-4121.
Ar increase II, fiscal 1956 authorization
amaunt of $9 400,000 for the particle
� traerater program. plus a further increase
ni %seal 1958 authorization of the $2.250,000
rar Project Sherwood passed the Senate on
I a: a, 1958. and was appreved on July 15.
aar,a, , Public Law 85-519i
Third the committee and Its staff have
teal informal discuasioas with the AEC
an the development of a long-term stornio.
�.,e,er progrtun statement A staff study,
reflecting the cubstarice 01 these informal
dIs� .rfolona will be Issued 'shortly by the
annii.ittee as a basis for further discuaskins
teact aeaston on the long-term aspects of the
mac-power program
.he committee held extenaite
hearings iast Penman' on hash, research in
atomic-energy field Copies of these
near:riga. together alai a report by the Re-
oearch and 1/evelopment 'Subcommittee. are
being cliatilb,Ited. to Members of Congress,
ite actentific eontmunity and the general
� to provide (let-ailed information on
cane research work as It is actually being
carrted on to totr laboratories and uniVersi.
*les These hearinas are of great Interest
:taitilia-ear rya; fled FIFA protaaed the
a I tt a coal, .1-e, , ,aeartrienoaaaas
. �4�
ef,t le-f 1 ,,t bt,ppc,r7; l pro,iecta oneet
AEC phm_al resei.rch prowrorti.
Filth the committee has acted favorably
upon two bills providing legislative author-
ita for f he t!niaeo States to oaocerate with
-ix as at SaIraca,a, ;,tar
,
� � "a i)"�,aer tItleieaS
���;g3,, it garope l.iV sao:i. Trie Middle &tat
as ries gar:, orgency to the need fur pro-
s* atonic' power ris_satanct to Europe
as a n,eant it ,,Ssettine depentleace on Mid-
dle nod oil
'One measure approved by the yammittee
I. a brief statement of laceret hi the form
of a concurrent resolution and the other is
to authorize American participation in
- at program, Inel,.cling Claude in research
aial development ar,c1 Iota element gauze/1-
'. at These two tneasairea were approved by
the senate on August 18 1964.
.aartali. other bale reported our by Lite coon.
tiorim the aeco.to se, non includes in.
aertiolty -ittaa,slatian exempt:rig State untver-1
all �,Pttler tratittittotut
aa.ta taaa ate it, PU. indemnity 'Act
ro; govei nmeatal
itactot bax2i.rd.s.
ttac&f.nv the .;enate ni Alattuat
- astatiaer raar was reported fait pravitaingaliass
" ante, merchant -
Wait'iipptow
r'eti
ta- atatala
- �
r _ran T.11., 1..11 en �
A"glst scat approvsaby
ire P,earle. 1 on 19 1 ace I- a
68! t�
In addition tier a i-lanIttee "law extee.sa,e
:eIrtngs on tIle .raW rilat,ria)A ps�-.!.ratre vt,-
certied with the Aka ,,,pn,.inicrrot xt of the
limitation of Mill coavaity As a ,eault of
the cornmatee's reeieV.- sniect the
Commission increased lot reciutretnents to
the t5tt5cr Sf lie raw tnaleriala
laclustry.
PRINTING AS A SENATE DOCUMENT
LEGISLATIVE RECORD OP 2D ENS-
' SION OF 85TH CONCiRe9S
- Mr. JOHNSON of Texas. Mr. Presi-
dent. I - ask unanimous consent that a
statement and accompanying legislative
review of the legislative record of the
2/1 session of the 85th Congress) be
printed in today's Recoso. and that the
same material. with suitable revisions
and extensions, be printed as a Senate
document,
The PRESIDING OFFICER. Without
objection. it is so ordered_
There being no objection tie state-
ment and review were ordered to be
printed in the REcoao, as follows
SCktaitARY or no Lrarstarrve Rreosa, 86rs
CONGRISS, 2o SEssioN, ..1,,i�Ut7AKY 7 1958,
TO Attars's' 24.1958
Statement by the Efoliontble Lvsnors B
Jour-tat:1w United Stater Senator from
Texas together vArli digests of legislation
passed by the Senate
taxa :a LEGISLATIVZ ACTioNS A 55 CONT:itl2A,
iii ars.SION ,PASA:t1 1307 HOOSE5 AS Of
AUGUST za, taset
,flatteetal
I Rca Taal azco
Lafease
A!It4,4-17,ed 534 0 r11:1th,/1 'or eXp:inalk/ti
od 11AlsallE baF,ea and warning system: and
created ARPA,
3 Authorized $386 Million for AEC con-
.tr,tr.T.:(11's and rxransion
�aal araaraa
12 art IT--,j-2,! of
pragran.
I:f.C.PrOt ..1 rr,d4 A, I
3 (1!Ithr,7tred exchange ot .1:141:N essen-
tial coonac irdarmalian and niaterlall� with
allies
4. Increased lending autbotita ot Export.
Import Bank by 52 billion
5. Adjustment of status mu Bun.
garisn escapees
6 Resolution mitt-one to the ratz.bIllihinttat
of al: illternatItillal plan hr peaCeltli
eapfortt :100 of outer space.
Odeernaterstal orf/59112a/i011,
I. Stational Aerornottics slid I-sce .Ati Of
195�8
Asian I [teal A ifiratt. As a State t,, hloa,
,
clitaalliktstion Act emploveri Inc-tease.
5. ALlyttoriZel . Irri:9140 eminent
employers In, et:tattle aehoola�
tholuriatitraloa
LI Its In
.41.t err [IMP y
I, Er r.:rnc!. 5, 8 ia0. 1-1,,11$17.14 Art.
2 1.�,a. a,..; $4 010 alztriiiriZatn-n far
ear E lat, -.rex
Ctiliiaa ataa,
create jai..., and expedite work,
4 Pr,vided optionally to States, for repay-
ye aa, up to la weeks additional
tap rr ei, -ompensation.
5, Autharizt-d Federal guarantee of rail-
road ha as tip L., $7,..10
6 Increased postal rates and postai pay.
2, authorized advanced purchases of sup-
piles and equipment from fiscal year 19',S9
appropriations to stimulate business
8. Broadened lending authority of Small
Business Admintstration
9. Small Business Administration made
permanent, it lending authority increased
and Interest rates reduced.
10. Authorized construction and sale by
Maritime Board of two pa.ssengise super-
liners.
11. Snaall Business Investment Act,
12. Small Business tax relief.
13. Extend the Renegotiation Act.
Agriculture
I. Barred reduction of 1958 farm price sup-
pone below 1957 level and barred cuts in
acreage allotments for 2 years. (Vetoed.)
2. extended soil conservation program for
4 years
3. Extended Agricultural Trade Develop-
meat and Assistance Act for sales of stir.
pluses abroad.
4. Agricultural Act of 1958.
Natural resources
1. Authorize $1.5 billion Ice flood control,
rivers and harbors
2, Extended program for czitical material
exploration.
Social Security, Health and Welfsre
1 Extended for 3 years special school milk
program with authorization Of $75 minion,
annual expenditure.
2. Authorized el million grants-in-aid to
train public health specialists, technicians
and administrators.
Ine,, ased cavil-service art. l:ties
4 attracted for 3 years the 5111-Buraiti
liosantai Stave, and Construction Act.
11. Authorised the Largest expenditures in
history for medical research-4294483.000.
which exceeded the budget estimate of
$21.7.1a.3000 by 583 200.000 .1- arno,t1,, �
Act', tr9
General Re-
search 417 742
55 923
Mental Health... 37 697
Heart -----------34712
Dental 6.2911
Arthritis 20. 592
Allergy, 17 497
20.727
Appro.
Stidg�.t panatela /acres:Jr,
$28. 974
75 268
52. 419
tb. 613
7.420
31.215
24.071
29. 403
$11,232
19.343
14 712
10.901
1 121
10.623
6 574
8 670
6. Extended Federal assistance programs
ior school construction in areas affected by
!Sider's! activities.
7. Required reporting and full disclosure
Of employee welfare and pension funds.
8. National Defense Education bill,
9. Area Redevelopment Acr,
Ill. Anther/zed r."ratits to expand teachiug
the aim-silt:1u of mentally retarded chll-
(Men.
II- Authorized *gentlre of the trureti
ter make grants support aeientifa
'es Act.,
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