MERITED RAISES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000500040029-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 44
• Document Creation Date: December 16, 2016
• Document Release Date: May 25, 2005
• Sequence Number: 29
• Publication Date: October 22, 1963
• Content Type: OPEN

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mission of genetic information ought to
come the insights necessary for the solution
of such problems as cancer, birth defects,
and viral diseases. Altogether, molecular
biology ought, in my opinion, to receive as
much public support as can possibly be
pumped into it; since money is not limiting
its growth, many more post-graduate stu-
dents and research fellows in molecular bi-
ology ought to be subsidized so that the at-
tack on this frontier can be expanded as
rapidly as possible.
The second field is high-energy physics.
The field of endeavor originally sought as
its major task to understand the nuclear
force. In this it has been only modestly
successful; Instead, it has opened an un-
dreamed-of subnuclear world of strange par-
ticles and hyperons, a world in which mir-
ror images are often reversed. The field has
no end of interesting things to do, it knows
how to do them, and its people are the best.
Yet I would be bold enough to argue that,
at least by the criteria which I have set
forth-relevance to the sciences in which it
is embedded, relevance to human affairs, and
relevance to technology-high-energy phy-
sics rates poorly. The nuclear forces are not
being worked on very directly-the world of
of subnuclear particles seems to be remote
from the rest of the physical sciences. Aside
from the brilliant resolution of the r-parti-
cle paradox, which led to the overthrow of
the conservation of parity, and the studies
of mesic atoms (the latter of which is not
done at ultra-high energy), I know of few
discoveries in ultra-high-energy physics
whic_i bear strongly on the rest of science.
(This view would have to be altered if ma-
chines such as the Argonne Zero Gradient
Synchrotron were exploited as very strong,
pulsed sources of neutrons for study of neu-
tron cross sections.) As for its bearing on
human welfare and on technology, I believe
it is essentially nil. These two low grades
would not bother me if high-energy physics
were cheap. But it is terribly expensive-
not so much in money as in highly qualified
people, especially those brilliant talents who
could contribute so ably to other fields
which contribute much more to the rest
of science and to humanity than does high-
energy physics. On the other hand, if high-
energy physics could be made a vehicle for
international cooperation-if the much-dis-
cussed intercontinental 1,000 Bev accelera-
tor could indeed be built as a joint enterprise
between East and West-the expense of high-
energy physics would become a virtue, and
the enterprise would receive a higher grade
in social merit than I would now be willing
to assign to it.
Third is nuclear energy. This being largely
an applied effort, it is very relevant to
human welfare. We now realize that in the
residual uranium and thorium of the earth's
crust, mankind has an unlimited store of
energy-enough to last for millions of years;
and with an effort of only one-tenth of our
manned-space effort we could, within 10 or
15 years, develop. the reactors which would
tap this resource. Only rarely do we see ways
of permanently satisfying one of man's
major needs-in this case energy. In high-
conversion-ratio nuclear reactors we have
such means, and we are close to their
achievement. Moreover, we begin to see
ways of applying very large reactors of this
type to realize another great end, the eco-
nomic desalination of the ocean. Thus, the
time is very ripe for exploitation. Nuclear
energy rates so highly in the categories of
technical and social merit and timeliness
that I believe it deserves strong support, even
if it gets very low marks in the other two
categories-its personnel and its relationship
to the rest of science. Suffice it to say that
in my opinion the scientific workers in the
field of nuclear energy are good and that
nuclear energy in its basic aspects has vast
ramifications in other scientific fields.
Next on the list are the behavioral scien-
ces-psychology, sociology, anthropology,
economics. The workers are of high quality;
the sciences are significantly related to each
other, they are deeply ,germane to every
aspect of human existence. In these re-
spects the sciences deserve strong public sup-
port. On the other hand, it is not clear to
me that the behavioral scientists, on the
whole, see clearly how to attack the im-
portant problems of their sciences. Fortu-
nately, the total sum involved in behavioral
science reseach is now relatively tiny-as it
well must be when what are lacking are
deeply fruitful, and generally accepted,
points of departure.
Finally, I come to manned-space explora-
tion. The personnel in the program are
competent and dedicated. With respect to
ripeness for exploitation, the situation seems
to me somewhat unclear. Our "hardware"
is in good shape, and we can expect it to get
better-bigger and more reliable boosters,
better communication systems, etc. What
is not clear is the human being's tolerance
of the space environment. I do not believe
that either the hazards of radiation or of
weightlessness are sufficiently explored yet
positively to guarantee success in our future
manned-space ventures.
The main objection to spending so much
manpower, not to say money, on manned-
space exploration is its remoteness from
human affairs, not to say the rest of science.
In this respect space (the exploration of very
large distances) and high-energy physics
(the exploration of very small distances) are
similar, though high-energy physics has the
advantage of greater scientific validity.
There are some who argue that the great
adventure of man into space is not to be
judged as science, but rather as a quasi-
scientific enterprise, justified on the same
grounds as those on which we justify other
nonscientific national efforts. The weakness
of this argument is that space requires many,
many scientists and engineers, and these
are badly needed for such matters as clarify-
ing our civilian defense posture or, for that
matter, working out the technical details
of arms control and foreign aid. If space
is ruled to be nonscientific, then it must be
balanced against other nonscientific expendi-
tures like highways, schools, or civil de-
fense. If we do space research because of
prestige, then we should ask whether we get
more prestige from a man on the moon than
from successful control of waterlogging
problem in Pakistan's Indus Valley Basin. If
we do space research because of its military
implications, we ought to say so-and per-
haps the military justification, at least for
developing big boosters, is plausible, as the
Soviet experience with rockets makes clear.
ix
The main weight of my argument is that
the most valid criteria for assessing scientific
fields come from without rather than from
within the scientific discipline that is being
rated. This does not mean that only those
scientific fields deserve priority that have
high technical merit or high social merit.
Scientific merit is as important as the other
two criteria, but, as I have argued, scientific
merit must be judged from the vantage point
of the scientific fields in which each field is
embedded rather than from that of the field
itself. If we support science in order to
maximise our knowledge of the world around
us, then we must give the highest priority to
those scientific endeavors that have the most
bearing on the rest of science.
The rather extreme view which I have
taken presents difficulties in practice. The
main trouble is that the bearing that one
science has on another science so often is
not appreciated until long after the original
discoveries have been made. Who was wise
enough, at the time Purcell and Bloch first
discovered nuclear magnetic resonance, to
18999
guess that the method would become an im-
portant analytical tool in biochemistry? Or
how could one have guessed that Hahn and
Strassmann's radiochemical studies would
have led to nuclear energy? And indeed,
my colleagues in high-energy physics predict
that what we learn about the world of
strange particles will in an as yet undiscerni-
ble way teach us much about the rest of
physics, not merely much about strange
particles. They beg only for time to prove
their point.
To this argument I say first that choices
are always hard. It would be far simpler if
the problem of scientific choice could be
ignored, and possibly in some future millen-
nium it can be. But there is also a more
constructive response. The necessity for
scientific choice arises in "big science," not
in "little science." Just as our society sup-
ports artists and musicians on a small scale,
so I have no objection to-in fact, I strongly
favor-our society supporting science that
rates zero on all the external criteria, pro-
vided it rates well on the internal criteria
(ripeness and competence) and provided it is
carried on a relatively small scale. It is only
when science really does make serious de-
mands on the resources of our society-when
it becomes "big science"-that the question
of choice really arises.
At the present time, with our society faced
with so much unfinished and very pressing
business, science can hardly be considered
its major business. For scientists as a class
to imply that science can, at this stage in
human development, be made the main busi-
ness of humanity is irresponsible-and, from
the scientist's point of view, highly danger-
ous. It is quite conceivable that our society
will tire of devoting so much of its wealth
to science, especially if the implied promises
held out when big projects are launched do
not materialize in anything very useful. I
shudder to think what would happen to
science in general if our manned space ven-
ture turned out to be a major failure, if it
turned out, for example, that man could not
withstand the reentry deceleration forces
after a long sojourn in space. It is as much
out of a prudent concern for their own sur-
vival, as for any loftier motive, that scientists
must acquire the habit of scrutinizing what
they do from a broader point of view than
has been their custom. To do less could
cause a popular reaction which would greatly
damage mankind's most remarkable intellec-
tual attainment-modern science-and the
scientists who created it and must carry it
"N4RITED RK1SES
(Mr. UDALL asked and was given per-
mission to address the House for 1 min-
ute to revise and extend his remarks,
and include two editorials.)
Mr. UDALL. Mr. Speaker, part of the
folklore of American politics is that edi-
tors and constituents will uniformly rise
up in indignation at any suggestion of
salary increases for public officials, espe-
cially Members of Congress. I do not be-
lieve it.
Salary legislation is like any legisla-
tion which costs money. It must be
clearly necessary and fair. If it is not,
it cannot be defended. If it is proper
and necessary, reasonable people will
support it.
Too often we in the Congress sell the
American people short. We imply by our
hesitancy to support good causes that
our constituents will be unreasonable,
that they will punish us for doing what
is right. This is sheer nonsense. I have
enough faith in the commonsense and
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judgment of the American people to be-
lieve they will support any legislation
that is necessary and fair.
Recently my colleague, the gentleman
from Virginia [Mr. BROYHILL], and 1in-
troduced legislation to provide salary
increases for all levels of the Federal
civilian service, including Members of
Congress, the Cabinet, top level civil
servants, the judiciary, the classified
service. and the postal field service. I
am happy to say that, contrary to the
pessimism and fears of some advocates,
support for this legislation is coming in
from far and near. For example, the
American Bar Association has given the
proposal a ringing endorsement, and its
national magazine will have a major
article in support of Federal pay raises
next month. The National Civil Service
League has given the legislation Its sup-
port. And a great many other groups
and organizations are making themselves
heard on the need for these long-overdue
pay adjustments.
Mr. Speaker, colleagues have brought
to my attention two newspaper editorials
published in their own districts in recent
days which strongly support this legisla-
tion. Under unanimous consent. I in-
clude them with my remarks at this point
in the RECORD:
[From the Trenton (N.J.) Evening Times,
Oct. 16, 19631
MERrrED RAISES
Searching inquiry by disinterested, non-
partisan groups Into the sagging levels of
Federal salaries has resulted in an lne:capa-
ble determination.
This is it: judicial and congressional pay
scales have for a long time been grossly in-
adequate.
As compared with what men In private
enterprise receive, men with comparable
talent and responsibilities, they are far out
of line. They have even lagged behind ad-
justments granted most officials and em-
ployees of the Federal service.
Those in the classified positions have re-
ceived boosts, and now the members of the
Armed Forces have had their pay reasonably
increased.
There are inequity in the other depart-
ments. The low salary rates tend to limit
these positions to persona of independent
wealth or outside earnings. Federal judges
cannot practice privately, and their accept-
ance of positions In the U.S. judiciary rep-
resents a sacrifice.
A district judge, for instance, earns $22,-
500, the same as Congressmen. An example
of disproportion exists In Pennsylvania,
where State court judges in many cases re-
ceive $5,000 a year more than the chief
judge and the other judges of the U.S. Court
of Appeals.
Naturally, all of us are aware of the
urgency of decreasing the expenditures of
the Federal Government. However, the coat
of any increase In judicial and congressional
pay which any responsible source would
recommend would be nominal when com-
pared with the advancement of the public
interest which would be served.
Some of the most important cases in re-
cent legal history have been decided In U.B.
District Court here. Giant corporations rep-
resented by the most expensive lawyers In
the land have pleaded their causes. Sitting
in judgment, Ironically, is a man whose
salary is a fraction of the fees paid the bat-
tery of counsels that face him and must
abide by his rulings.
The American Bar Association has over-
whelmingly supported Federal judicial raises.
The President's own pay panel has recoi a-
mended them.
Members of Congress are naturally reluc-
tant to raise their own pay, being fearful
of the reaction at home. They should art
be so coy. They spend more money for me re
purposes than any body of men on ti Is
planet. Commonsense demands that they
devote a tiny fraction of their appropri s-
tlons to making the top jobs of statecraft i i-
viting to the persons best fitted to hcid
uh,tul.
[From the Michigan City News-Dispatca,
Oct. 2. 19831
PAY RALSES NEEDED
Businessmen know that few things cc it
them more than bad managers. Ineptitwie
or stupidity at the top inevitably multipli is
as it filters down through management leve s,
creating great waste.
At least one businessman believes the same
thing holds true in government-and hp's
trying to do something about it.
Clarence Randall. retired steel executh e,
headed a presidential advisory panel whit h
made a penetrating study of federal salaric S.
in August the panel submitted its repo 't
and recommendations, Randall has ca ,-
soled its essence In one succinct paragrapl.:
'Never has our Federal Government lu d
greater need for able men in posts of execu-
tive, legislative and judicial responsibility.
Yet we are asking our Federal officials o
accept these responsibilities at salaries mu( h
less than they can obtain elsewhere and mut h
less than the level that would make it po t-
sibte for them to serve the Government."
F ,ergetic and outspoken. Randall did n it
conclude his mission with submission of ti e
panel's report. He has since crusaded vii:-
orously for congressional approval of I s
recommendations.
Specifically, the panel would boost Cal.-
tnet salaries from $25,000 to $50,000. Supren e
Court Justices from $35.000 to $60.000 at d
Members of Congress from $22.600 to $35,00) '
Comparable salary Increases are recon -
mended for other top Federal executive i,
such as assistant secretaries and bures a
chiefs. Says Randall:
"Without adjustment at the top, executiv' s
In key Federal positions ? ? cannot rt -
ceive realistic compensation for their impo. -
tent work. Their part In the successfi.l
conduct of Government cannot be overen -
phasized. Their responsibilities general y
equal those of a top corporation executive "
Randall dramatizes existing Inequities wit a
two revealing examples:
1. In one western city, 28 top executives
are paid more than Federal Cabinet member e
? ? ? and the comptroller of one souther I
State gets more pay than the U.S. Secretary
of the Treasury.
2. Mayors and managers of at least I t
cities get as much salary as Cabinet member;.
Randall, who well knows the cost of Ir -
tenor management In business, says bluntly :
"Tt Is poor economy to make it Impossib s
to obtain the best available top managemer t
for programs that cost the taxpayer hur -
dreds of millions of dollars. Seen as a ques-
tion of good business judgment, the preser t
salary practices of Government cannot b.-
justified.
"Now Is the time to overhaul our (Fed-
eral l ? ? ? pay structures. The cost :s
small-less than the going price of one des
troyer escort vessel. We should make th i
Investment required to provide ? ? ? th i
ablest executives, judges and legislators our
society can produce.
Randall Is right-but without widesprea I
public understanding and support his sepal ,
his proposals may languish. Congress prob
ably won't get to them until 1984, a bi ,
election year when salary raises migh;
alienate uninformed voters.
VOLUNTARY ACCOMMODATIONS
ACT
(Mr. BENNETT of Florida asked and
was given permission to address the
House for 1 minute, to revise and extend
his remarks, and to include extrareous
matter.)
Mr. BENNETT of Florida. Mr. Speak-
er, I have today introduced a bill in the
House of Representatives to provide a
voluntary solution to the problem of Ne-
gro travelers in finding adequate motel,
restaurant, and other facilities on the
Nation's highways.
The voluntary accommodations leg-
islation would make possible low interest
rate loans for the construction of such
facilities for members of the Negro race.
This legislation would complement
and support the freedom of association
constitutional amendment which 1 in-
troduced several weeks ago. This con-
stitutional amendment would preserve
the right of freedom of association in
private business, housing, and educa-
tional institutions.
A Negro traveling some of the ligh-
ways in America has difficulty in finding
adequate accommodations for himself
and his family. I believe it is uncon-
stitutional to force private business to
accept persons whom the property own-
ers do not wish to accept or serve. These
points were strongly presented in the
recent hearings on the proposed pub-
lic accommodations section of the civil
rights legislation now before the Con-
gress.
This Voluntary Accommodations Act,
which would assure adequate housing,
motel, hotel, and eating accommodations
for all people in the United States, would
do away with the atmosphere of appre-
hension or ill will now prevalent in many
parts of the country. A Negro could
have the assurance of a safe and sound
night's sleep, and there would be no need
for the compulsive, and probably uncon-
stitutional legislation introduced by ad-
ministration leaders.
There is nothing new to my approach
to help solve this pressing social prob-
lem in America.
The first speech I made on the floor
of the House of Representatives 15 years
ago was in support of legislation to pro-
vide funds for construction of schools
on the basis of population in the schools
attributable to Negroes and Indians.
This bill, along with the one I have in-
troduced today, has nothing to do with
segregation or integration. It is long
overdue.
There is great fear throughout the
country that the administration's pro-
posal for public accommodations would
force many private businesses out of
business. I believe the answer to the
problem is this Voluntary Accomnlcda-
tions Act. The bill follows:
H.R. 8881
A bill for voluntary accommodations, to as-
sure the provision of decent, safe, and sani-
tary housing and adequate motel, hotel,
and eating accommodations for all Ameri-
cans
Be it enacted by the Senate and House of
Representatives of the United States of
America In Congress assembled, That this
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Act may be cited as the "Voluntary Accom-
modations Act".
SEC. 2. The Congress hereby finds that in
many areas of the United States additional
decent, safe, and sanitary housing and more
motel, hotel, and eating accommodations
are needed that will be made available to
Negroes, and that they are not being pro-
vided either with or without the assistance
of existing Federal housing or other pro-
grams.
SEC. 3. In order to assure the provision of
adequate housing and motel, hotel, and
eating accommodations for all the people
in the United States, the Housing and Home
Finance Administrator Is authorized to make
and to enter into commitments to make loans
for-
(1) the purchase or construction of dwell-
ings to be owned and occupied by the bor-
rowers as their homes;
(2) the repair, alteration, or improvement
of dwellings owned or to be owned and oc-
cupied by the borrowers;
(3) the construction or repair and reha-
bilitation of multifamily housing projects
and related facilities; and
(4) the construction or repair and re-
habilitation of motel or hotel accommoda-
tions and related facilities, and eating ac-
commodations.
SEC. 4. Assistance provided under this Act
shall be subject to the following conditions:
(a) The Administrator shall find, before
making a loan, or a commitment to make a
loan, that in the area in which the housing
or accommodations are or are to be located
more decent, safe, and sanitary housing, or
more motel, hotel, and eating accommoda-
tions, as the case may be, are needed to
assure their availability to Negroes, and that
the housing or accommodations cannot be
provided with the assistance of any other
Federal housing or other program, or by any
other reasonable method.
(b) The Administrator shall determine
that the applicant for a loan is a satisfactory
credit risk.
(c) In the case of an applicant for a loan
pursuant to paragraph (3) or (4) of section 3
the applicant shall agree that it will provide
the type of housing or accommodation that
is needed, and that during the time any
part of the loan remains unpaid the bor-
rower will be regulated or restricted by the
Administrator as to rents or sales, charges,
capital structure, rate of return, and meth-
ods of operation to such extent and in such
manner as the Administrator determines will
provide reasonable rentals and charges and
amortization of the project or accommoda-
tions.
(d) The amount of a loan made pursuant
to-
(1) Paragraph (1) of section 3 may not ex-
ceed $10,000 or the value of the property in-
cluding the land;
(2) Paragraph (2) of section 3 may not ex-
ceed $5,000 or the sum of the estimated cost
of repair and rehabilitation and the Admin-
istrator's estimate of the value of the prop-
erty (including the land) before repair and
rehabilitation;
(3) Paragraph (3) or (4) of section 3,
may not exceed $100,000 or the estimated
value of the property (including the land
and necesary site improvement) when con-
(f) A loan shall bear interest at 3 per
centum per annum on the amoifnt of the
principal obligation outstanding at any one
time, except that the interest rate may be
increased to not more than 8 per centum if,
with the approval of the Administrator, an
obligor other than the original borrower as-
sumes the obligation of repayment of the
loan or any outstanding balance of the loan.
(g) A loan shall be subject to such terms
and conditions as may be imposed by the
Administrator to carry out the purposes of
this Act, including agreement by the borrow-
er that without the approval of the Adminis-
trator (1) the property purchased, con-
structed, or rehabilitated with assistance of
the loan will not be sold, and (2) no person
other than the original mortgagor will assume
payment of the mortgage given to secure the
loan.
(h) The housing and accommodations as-
sisted under paragraphs (3) and (4) of sec-
tion will be made available to Negroes.
SEC. 5. There are authorized to be appro-
priated such sums as may be necessary to
constitute a revolving fund for use by the
Administrator in carrying out this Act.
SEC. 6. The Administrator shall take such
action as may be necessary to insure that all
laborers and mechanics employed by con-
tractors and subcontractors in the construc-
tion, repair, or rehabilitation of housing and
accommodations assisted under this Act shall
be paid wages at rates not less than those
prevailing in the locality involved- for the
corresponding classes of laborers and me-
chanics employed on construction of a simi-
lar character, as determined by the Secretary
of Labor in accordance with the Act of March
3, 1931, as amended (the Davis-Bacon Act);
but the Administrator may waive the appli-
cation of this section in cases or classes of
cases where laborers or mechanics, not other-
wise employed at any time in the construc-
tion of such housing or accommodations,
voluntarily donate their services without full
compensation for the purpose of lowering the
costs of construction and the Administrator
determines that any amounts saved thereby
are fully credited to the borrower undertak-
ing the construction, repair, and rehabilita-
tion.
SEC. 7. In the performance of, and with
respect to, the functions, powers, and duties
vested in him by this Act the Administrator
shall (in addition to any authority otherwise
vested in him) have the administrative and
fiscal functions, powers, and duties which are
necessary or appropriate to enable him to
carry out this Act, as set forth in section 402
(except subsection (c) (2)) of the Housing
Act of 1950. The Administrator may utilize
the facilities and services of any other Fed-
eral department or agency and may delegate
the performance of any of his functions, ex-
cept the making of regulations, to any officer
or employee of any other Federal department
or agency. Any such utilization or delega-
tion shall be pursuant to proper agreement
with the Federal department or agency con-
cerned, and payment to cover the cost thereof
shall be made either in advance or by way of
reimbursement, as may be provided in the
agreement.
SEC. 8. As used in this Act, the term
struction is completed in the case of new of Puerto Rico, and the possessions of the to a much improved business position if
construction, or, in the case of repair and I United States. the General Dynamics firm won the TFX
rehabilitation, the estimated cost of repair
and rehabilitation and the Administrator's
estimate of the value of the property (in-
cluding the land and necessary site improve-
ment) before repair and rehabilitation.
(e) A loan shall be secured by a mortgage
which shall provide for complete amortiza-
tion by periodic payments within such term
up to 40 years as may be prescribed by the
Administrator, except that the term of a loan
made under paragraph (4) of section 3 may
not exceed 25 years.
NAVY SECRETARY FRED KORTH
(Mr. GROSS asked and was given
permission to address the House for 1
minute and to revise and extend his re-
marks.)
Mr. GROSS. Mr. Speaker, I wish to
call the attention of the House to the
following articles that are of some sig-
nificance in the conflict-of-interest role
of Navy Secretary Fred Korth. The
articles are:
The story by Cecil Holland, of the
Washington Star, appearing October 20,
1963, dealing with the Korth correspond-
ence on Navy Department stationery to
promote the business of his bank. It
also includes Korth's claim that he was
not asked to resign.
The story by Max Frankel, of the New
York Times, appearing October 20, 1963,
dealing with the reports that Korth was
forced to resign. It also dealt with
Korth's use of the Navy yacht the Se-
quoia, for the entertainment of officials
of his bank and the extra good cus-
tomers of Korth's Continental National
Bank in Fort Worth.
The story by Clark Mollenhoff, of the
Des Moines Register and Tribune and
Minneapolis Star and Tribune, appear-
ing October 20, 1963, dealing with the
part a high General Dynamics official-
Mr. Frank Pace-played in steering an
insurance deal to Korth that netted
Korth stock worth a quarter of a mil-
lion dollars. The report states that
Korth admitted he did not have to risk
a penny of his own money to make this
huge profit.
The article in the October 25, 1963,
issue of Time magazine which states that
Defense Secretary Robert McNamara
advised President Kennedy to demand
the resignation of Korth; that on Oc-
tober 11, 1963, Korth had breakfast with
McNamara and that same afternoon the
Navy Secretary personally handed in his
resignation at the White House. The
White House made the resignation pub-
lic on October 14, 1963, "but did not,"
said Time, "reveal that Korth had, in
fact been fired."
Put the facts in those stories together
with the McClellan Investigating Sub-
committee record, and see what you
have.
Korth approved a $400,000 loan for
General Dynamics in the months just
prior to becoming Navy Secretary. Al-
though he resigned as president of the
bank, he retained 160,000 shares of
stock.
Now we see that Korth continued to
steer clients to his bank, wrote letters on
Navy stationery to promote the bank's
business, and entertained the bank's ex-
tra good customers on the Navy yacht
Sequoia.
Now, we see that Korth had good
reason to be grateful to many high of-
ficials of General Dynamics, because of
the deposits of from $100,000 to $500,000
that General Dynamics carried with the
Continental National Bank of Fort
Worth. We see that officials of the Con-
tinental National Bank looked forward
to have General Dynamics win the
award.
In the face of all those facts, Fred
Korth did not disqualify himself on the
TFX contract. He took part and over-
ruled the judgment of the top military
officers and civilian technical experts
who felt the contract should be to
Boeing.
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I SSIC~l~ I I - F P66B00 303SE000500040029-0 October 22
Korth should have been fired for not
disqualifying himself in the TFX award.
The more facts we learn, the more it
becomes clear that there was a conflict
of interest.
His TFX role was grounds for firing
him. His activity in this insurance deal,
in which he voted approval of the trans-
actions with Ben Jack Cage should have
been grounds for firing him.
Korth's correspondence on Navy sta-
tionery to promote his bank's business
was grounds for firing him.
If the Justice Department did not
clear Korth, then the Attorney General
should state that this is so in a loud and
clear voice, and let it be known that
Korth was wrong and his pattern of
activity will not be tolerated.
The pattern of coverup we have been
treated to in the Korth affair does not
stimulate the belief that there is a proper
atmosphere to promote honest govern-
ment.
First. The atomic carrier story was a
phoney "cover story" to mislead the pub-
lic on the reason for Korth's resignation.
Second. We were told that Korth's
resignation had nothing to do with TFX.
This was someone's cute and clever way
of misleading the public into believing
that the McClellan Investigating Sub-
committee's work had nothing to do with
Korth's resignation. Now it is becoming
clear that the letters uncovered by the
McClellan staff were at the bottom of
the forced resignation. Even this is an
effort to avoid admission that Korth's
conflict of interest in involved, for that
might contaminate the whole TFX con-
tract and force reconsideration.
Third. Korth now says that no one
asked him to resign. This is another bit
of wording that is intended to mislead
the press and the public into believing
that top officials of the Kennedy admin-
istration have absolved Korth of wrong-
doing. I do not think he would be re-
signing if the top officials were so con-
vinced he was not at least indiscreet.
It is time for the administration to
end this doubletalk and this coverup.
It is time to quit shielding Korth and
others involved in the mismanagement
and the misdoings in the TFX warplane
contract. It is time for the President
to take a forthright stand for strong
steps to clean up this TFX mess.
THE BUCKET ARGUMENT
(Mr. HALL asked and was given per-
mission to address the House for 1 min-
ute and to revise and extend his re-
marks and include an editorial.)
Mr. HALL. Mr. Speaker, Members of
the House will recall that I did my ut-
most during the recent debate on the
foreign aid authorization bill to attach
an amendment which would limit our
contributions to United Nations Assist-
ant Agencies to not more than 33 i,1 of
the total budgets of those agencies. This
is the same limitation now applicable
by law to the Federal United Nations
Budget and our contributions thereto.
The Wall Street Journal reports that
the United Nations Special Fund now
seeks a $28 million boost in its budget
for 1964. This would be more than a
third greater than the 1963 budget ar d
we already contribute 40 percent of ti e
United Nations Special Funds budget.
It appears that while we are finaly
tightening up our foreign aid budget,
we are losing our savings through tt e
back door to the United Nations aid
program. I urge the Members of ti e
House to read the following editori..i
from the Wall Street Journal.
THE BucxL-r AaGUKEri'r
The United Nations Special Fund, an on -
fit that provides technical assistance to ui -
derdeveloped nations. Is seeking a $28 millic a
boost in its budget for 1984.
In case anyone thinks this a bit steep- -
It would be up more th:nn a third from 1963- -
the Fund's managing director, Paul G. Hof -
man. Implies that It's a drop in the bucks t
compared with the $120 billion U.N. membe. s
will spend on defense this year.
A number of questions can be raised abot t
this whole Special Fund undertaking, or e t
least the heavy U.S. support of It. Tie
United States, after all, runs an extreme.y
expensive foreign aid program of Its owii.
And some of the U.N. Special Fund money
has gone to peculiar places like Communie t
Cuba-
Apnrt from all that, what interests us s
this drop-in-the-bucket argument, which a
getting so familiar In so many areas. w e
are constantly told, for example, that the
outlay for books or concerts or whateve r
Is only a drop In the bucket compared wit i
national spending on liquor and clgaret ?,
Just as though there were some relevar t
connection.
Or that the Government foreign aid pre -
gram is only a drop In the total budge .
Or, for an intriguing variation, that tha
public debt, which is rapidly rising, is actu-
ally getting smaller as a percentage of gross
national product or something. Or, for t
further variation. that a particular pork-
barrel project costs hardly anything-th s
first year, that is.
Somehow the bucket-arguers never seer i
to reflect on the obvious: That all thos s
drops quickly became raging oceans of spend
trig and, in the cases of the United State i
and the U.N., red ink.
CUBA
The SPEAKER pro tempore (Mi,
LISOISATI). Under previous order o'
the House, the gentleman from Mon tan.,
1 Mr. BATTINI is recognized for 1 hour.
(Mr. BATTIN asked and was givei
permission to revise and extend his re
marks.)
Mr. BATTIN. Mr. Speaker, today I;
an anniversary-the anniversary of th,!
President's address to the Nation an
nouncing that there were indeed missilt'
sites in Cuba. In this speech the Presi
dent announced his intention to impost'
a partial blockade-which he called i.
quarantine-to prevent the arrival o'
further offensive military equipment it
-
Cuba.
Last Saturday. recalling the events o'
the crisis of October 1982, the Presiden .
declared that the outcome of that crisp;
could not be considered either "a vic-
tory in the usual military sense" or a de
feat. He left the Nation in considerable
doubt as to Just what the outcome shoulc
be considered.
The results are indeed difficult to as
sess. If one does not limit himself to
the events of the week of October 22
1962, but looks at these events in the
broader context of the events that pre-
ceded and the events that followed the
week of the missile crisis, one is to a
better position to judge whether the So-
viet Union or the United States obtained
a net advantage. In this larger context,
the Soviet Union has scored a victory by
establishing in this hemisphere a sub-
stantial military base, whether that base
is at present equipped with missiles or
not. Khrushchev has sucessfully defied
the historic policy of the United States,
the Monroe Doctrine, by political and
military intervention in this hemisphere.
Khrushchev has done- what Adolph Hit-
ler was forbidden to do by Franklin D.
Roosevelt-Khrushchev has done what
no foreign power was permitted to c'.o in
the past 100 years.
The massive Soviet military buildup
began in the summer of 1962. This fact
has been admitted by the administration
itself. In a statement of the Special
Committee on Communist Subversion of
the OAS-a committee which included
the former American Ambassador to the
Organization, Mr. deLesseps S. Morri-
son, we read:
The military intervention of the Soviet
Union in this hemisphere began to assume
Important proportions with the arrival In
Cuba, in the middle of July 1962, of large
shipments of Soviet war materials and mili-
tary personnel. This fact Introduced a new
and dangerous element Into the extraconti-
nental intervention, which until then had
primarily consisted of political and economic
penetration.
A formidable military force exists in
Cuba today, and as long as that force is
there it is idle to deny that Khrushchev
has scored a victory.
Let us look at the other aspects of the
missile crisis. The President declared in
his speech of October 22, 1962:
Our goal is not the victory of might, but
the vindication of right-not. peace at the ex-
pense of freedom, but both peace and free-
dom, here in this hemisphere, and, we hope,
around the world. God willing, that goal
will be achieved.
It is quite obvious that we have not
achieved the goal which the President
laid down-freedom has not been brought
to Cuba. Using the standard that the
President himself laid down in his speech
I year ago, again we are forced to con-
clude that the outcome of the missile
crisis was not victory for the United
States.
Again in his speech 1 year ago, the
President called for "the prompt dis-
mantling and withdrawal of all offensive
weapons in Cuba, under the supervision
of U.N. observers, before the quarantine
can be lifted." In his correspondence
with Khrushchev the President insisted
on some form of onsite inspection, but
the quarantine was lifted without secur-
ing the inspection which the President
had told the world he was demanding.
This retreat cannot be considered a vic-
tory for the United States.
No one can be sure whether Soviet
missiles remain in Cuba. The Senate
Preparedness Subcommittee has said :
Strategic weapons may or may not be now
in Cuba. We can reach no conclusion on
this because of the lack of conclusive evi-
dence.
Ironclad assurance of the complete ab-
sence of Soviet strategic missiles in Cuba
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CONGRESSIONAL RECORD - SENATE 19831
Syracuse has: Modern hotels and motels
with a total of 3,900 rooms; 2,600 retail estab-
lishments with annual sales totaling over a
half billion dollars; 850 wholesale and dis-
tributor firms with annual sales totaling
more than a billion dollars; 4 commercial
banks with 52 area branch offices and de-
posits totaling $605 million; 2 savings banks
with 4 area branch offices and deposits total-
ing $368 million; 4 savings and loan associa-
tions with 3 area branch offices and deposits
totaling $78 million; 2,500 farms with an-
nual sales totaling $18 million; annual per-
sonal income in excess of $740 million; 48
percent of local families earning over $7,000
annually; and almost 90 percent of area
families have incomes of $4,000' or more per
year.
GREATER SYRACUSE-A DIVERSIFIED INDUSTRIAL
COMPLEX
Greater Syracuse is a rapidly growing in-
dustrial complex, one of only 33 areas in the
United States having operations in all 20
basic industrial classifications. A Fortune
magazine listing of the 500 largest corpora-
tions in the United States shows 98 with
operations here-ranking Syracuse first in
the Nation. The area along Syracuse's five
exits on the New York State Thruway has-
witnessed more new industrial growth than
any area in the State-and continues to grow
constantly. In addition, Syracuse Is one of
northeastern America's major distribution
centers.
Industrial diversification
(Nearly 000 manufacturing firms employing over 56,000
personal
Number of
firms
SIC
No.
Onon-
daga
County
Metro.
politan
area
Food--------------------------
135
Tobacco-----------------------
1
Textile mill products-__-_---_-
8
Apparel- ----------------------
16
Lumber and wood products---
42
Furniture and fixtures ---------
27
Paper and allied products-_---
32
Printing and publishing--_____
101
Chemicals and allied products-
33
Petroleum refining____________
8
Rubber and plastics___________
7
Leather_______________
6
Stone, clay, glass--------------
34
Primary metal________________
37
Fabricated metal______________
8B
Machinery (except electrical) -_
120
Electrical machinery and
equipment_ ________________
18
Transportation equipment.-__
14
Profession, scientific, control
instruments-----------------
10
Miscellaneous manufacturing
industries__________________
24
MAJOR INDUSTRIAL FIRMS I
A. E. Nettleton Co.
Allied Chemical Corp., Solvay Process
Division.
Bristol Laboratories, Inc.
Camillus Cutlery Co.
Carrier Corp.
Chrysler Corp., New Process Gear Division.
Continental Can Co., Inc.
Crouse-Hinds Co.
Crucible Steel Co. of America
Electric Autolite Co.
Frazer & Jones Co.
General Electric Co.
General Motors Corp. Temstecl Division.
Iroquois China Corp.
Julius Resnick, Inc.
Kilian Manufacturing Co.
Lamson Corp.
Learbury Clothes, Inc.
Employing 200 persons or more.
No. 176-4
Lennox Industries, Inc.
Lipe-Rollway Corp.
McMillan Book Co.
Muench-Kreuter Candle Co.
Murray Corp. of America, Easy Laundry
Appliance Division.
New York Bell Telephone Co.
Niagara Mohawk Power Corp.
Oberdorfor Foundries, Inc.
O. M. Edwards, Inc.
Onondaga Pottery Co.
Pass & Seymour Co.
Porter-Cable Machine Co.
Precision Castings Co.
R. E. Dietz Co.
Rollway Bearing Co., Inc.
Sylvania Electric Products, Inc.
Syracuse Ornamental Co.
U.S. Hoffman Machinery Corp.
Western Electric Co.
Will & Baumer Candle Co.
Some products of Greater Syracuse: Elec-
trical equipment, electronic equipment, tele-
phone equipment, radio and television sets,
pharmaceuticals, chemicals, air condition-
ing, tool steel, roller bearings, soda ash, con-
tainers, automotive equipment, agricultural
implements, furniture, office equipment,
machine shop products, foundry products,
conveying equipment, chinaware and pottery,
wax candles, clothing, shoes, handbags, and
foods.
Distribution of labor force
Manufacturing--------------------- 56,700
Construction----------------------- 8,000.
Transportation and communications_ 11, 000
Wholesaling and retailing ----------- 33, 500
Finance, insurance, real estate------ 6, 500
Government------------------------ 15,000
Services---------------------------- 17,600
Agriculture ------------------------ 4,000
Self-employed ----------------------- 12,600
Domestic--------------------------- 2, 500
TRANSPORTATION AND RESOURCES
Located at the intersection of the 500-mile,
east-west New York State Thruway (Inter-
state Route 90) and the new north-south
Penn-Can Highway (Interstate Route 81).
Both routes interconnect with the Nation's
other major superhighways. Syracuse is one
of only eight cities in the United States
located at the crossing point of two major
superhighways, making it one of the fastest-
growing distribution centers In the Nation.
Syracuse is served by 124 motor freight
carriers with major terminals. There is also
direct bus service in all directions.
One of the largest railroad marshaling
yards in the world is located here, the New
York Central Dewitt classification yard.
Syracuse is a major terminal on the 522-
mile Barge Canal System, which links the
Atlantic and Great Lakes and handles over
2,400,000 tons of cargo per year.
Hancock Field, one of the most modern
airports In the Nation, is served by Eastern,
Mohawk, and American Airlines. There are
an average of 70 flights daily, handling over
565,000 passengers and 1,640 tons of cargo
per year. It is also the home of the U.S. Air
Force's 26th Air Division, the original SAGE
Command.
Water is presently supplied by Skaneateles
and Otisco Lakes, two of the purest bodies
of water in North America. Daily capacity
is approximately 66 million gallons. In addi-
tion, unlimited sources of water will be
tapped for all future needs. Currently ap-
proved plans call for construction of trans-
mission and storage facilities to provide up
to 62,500,000 additional gallons of water per
day.
Electric power and natural gas service are
provided by the Niagara Mohawk Power
Corp. The utility is also engaged in a re-
search and development program for future
use of atomic power. The Niagara Mohawk
system has 81 hydroelectric and 5 steam-
electric generating stations, and a total ca-
pacity of 4,569,000 kilowatts. Principal trans-
mission routes for this power intersect at
Syracuse, where the Niagara Mohawk system
power control center is located.
OF 1963-AMENDMENT (AMEND-
MENT NO. 283)
Mr. ROBERTSON. Mr. President, I
ask unanimous consent that I may yield
to the Senator from Delaware [Mr. WIL-
LIAMS] for 3 minutes, without losing my
right to the floor.
The PRESIDING OFFICER. Without
objection, it is so ordered.
Mr. WILLIAMS of Delaware. Mr.
President, on Wednesday, October 29, the
House committee approved H.R. 8986.
This bill embraced the ;administration's
suggestion that the salaries of the top
executives of the Government, including
Members of Congress, a increased by
about 50 percent. In my-opinion, this
suggestion is fiscally irresponsible, par-
ticularly at a time when our deficit is
running at the rate of around $1 billion
per month, and there is no indication
that spending is being reduced to bring
it more into line.
Under the administration's proposal,
salaries of Cabinet members would be in-
creased from $25,000 to $35,000. Salaries
of members of the Supreme Court would
be increased from $35,000 to $45,000.
Salaries of Members of Congress would
be increased from $22,500 to $32,500.
Heads of other agencies, whose pres-
ent salaries range from $12,000 to $20,-
000, would be increased proportionately,
with these increases ranging from $5,000
to $8,000 a year.
In my opinion, to approve such an in-
crease in salaries of those top officials who
are responsible for our present financial
instability is an insult to the American
taxpayers who will have to bear the
burden.
Surely no private company would give
a 50-percent salary increase to its top
executive officers and directors when the
management had produced but six bal-
anced budgets in the past 30 years.
Therefore, I am today submitting an
amendment to the bill now pending in
the committee, and if the bill is later re-
ported by the Senate Committee with-
out this amendment it will be reoffered
in the Senate.
The purpose of this amendment is to
postpone the effective date of any in-
crease on any salary of $10,000 or over
until the first day of the first month
after the close of a fiscal year with a
balanced budget.
Surely no Frontiersman will object to
this effective date since they are all now
claiming that their heavy spending
policies and large tax cuts will accelerate
the economy to such an extent that it
will soon give us not only a balanced
budget but will solve all our other
problems as well.
The amendment reads as follows:
At the appropriate place insert a new sec-
tion as follows:
Notwithstanding any other provisions of
this bill the effective date of any increase on
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19832 CONGRESSIONAL RECORD - SEDATE November 1
any salary of $10,000 or over, shall be the be $9 billion; and that the expectel The Federal Aviation Agency has his-
first day of the first month after the close deficit for the fiscal year of 1965 begir- torical ties back to 1926 when the Air
of a fiscal year with a balanced Federal
budget. nl.ng on July 1, 1964, will be $9.2 billioi Commerce Act created the Aeronautics
It thus Is obvious that the aggregate Branch-later the Bureau of Air Com-
The PRESIDING OFFICER. The deficits for the 5 years discussed wi I merce-in the Department of Commerce.
amendment will be received, printed, and be $341, billion. Manifestly the del t The next major step was the Civil
referred to the Committee on Post Office ceiling must be lifted. Our spending prc - Aeronautics Act of 1938 which created
and Civil Service; and, without objec- grant is not based on revenues receive I the independent Civil Aeronautics Au-
tion, the amendment will be printed in but on new debts incurred. thority.
the RECORD. I want to provide a tax cut for tie World War II gave a tremendous im-
The amendment (No. 283) was re- people of our country but I want to do t Pettis to aviation and the number of
ferred to the Committee on Post Office on the basis of a rational and sound ar- pilots and planes, and the performance
and Civil Service, as follows: proach which means a reduction Instea I of aircraft, including jet aircraft, in-
At the appropriate place Insert a new sec- of an expansion of spending. creased enormously.
tion as follows: Respecting the proposed salary raises As early as 1948 the President's Air
"Notwithstanding any other provisions of of high echelon officials including th s Coordinating Committee warned that
this bill the effective date of any increase on Senators and Representatives of the U1. the techniques and tools available for
any salary of $10,000 or over, shall be the Congress, I will approve of it the momer t the control of air traffic were, at least,
first day of the first month after the close of
a fiscal year with a balanced Federal we achieve a balanced budget. marginal and It became increasingly
budget." The amendment contemplates the ap- apparent that the CAA could not cope
Mr. LAUSCHE. Mr. President, I ask proval of pay increases only on the dat! with the serious problem of our increas-
unanimous consent that I may be added that it is established that our budget has ingly congested airspace. The ma;grrf-
been balanced. tude of the problem was highlighted by
as a cosponsor of the amendment sub- Mr. ROBERTSON. Mr. President, i the White House Aviation Facilities
mitted by the distinguished Senator from ask unanimous consent that I may ytel I Study Group in 1955, and another step
Delaware [Mr. WILLIAMS], which pro- to the Senator from Oklahoma [M:. forward was taken with the passage of
vides that the contemplated pay In- MoNRoNsYl for 3 minutes without losin f the Airways Modernization Act of 1957.
crease for Supreme Court, appellate, and my right to the floor. I am proud to have been the sponsor
district court judges, and for members The PRESIDING OFFICER. Without: of the Federal Aviation Act of ?958
of commissions, and other employees of objection, it is so ordered. which repealed the Air Commerce Act
the Federal Government, if passed, shall of 1926, the Civil Aeronautics Act of
not go into effect until the first day after 1938, and the Airways Modernization Act
it is disclosed that the budget has been FIFTH ANNIVERSARY OF THE FED -
balanced. PRAT. AVTA of 1957, and, finally, established the Fed-
T'rf3W Arnr'V
e
Mr. MONRONEY. Mr. President, the Today, the responsibilities and activi-
sadlarytof $10 000 of the I present y rey Federal Aviation Agency today celebrates ties of the FAA go far beyond the Na-more ceived shall. become effective until the its fifth anniversary. I want to take this tion's borders. They encompass all the
first day of the first month after the opportunity to congratulate the FAA fc r States and possessions and touch upon
close of a fiscal year that shows a what it has achieved during Its first 5 the international areas in which our flag
balanced Federal budget, years, and to wish It well for the yeas s carriers operate.
ahead. After all, the achievements (f
I welcome the Senator from Ohio as the FAA reflect in large part the achieve- I am happy to report that the Agency
a cosponsor of the amendment. This has made significant steps forward in its
could more or less be called an Incentive menu of America in the field of aviatiol , first 5 years in establishing and operating
amendment, because it would involve The progress that has been made through the steady improvement in th an airways system that provides a safe
thousands of employees, who would be safety, reliability, and efficiency of our environment for today's air travelers,
working vigorously to eliminate waste In air transport is truly remarkable. and for the continued growth that is
the Federal Government In order that All sure to come.
the budget could be balanced, and there- Americans can b proud the fact I am proud. also, of the pionee: in
that even with the faster and fast( r g
by achieve their salary increase. speeds now offered air travelers by the which has been undertaken by FAA
Mr. LAUSCHE. I appreciate the sth; wift to develop major economies
courtesy of the Senator in giving me the crowded rei swept-wing
airways ways and jets, and growing despite cangest to r by assuming functions of air traffic con-
opportunity to become a cosponsor. around metropolitan air terminals, flyin I trol previously handled by military agen-
Mr. DOMINICK. Mr. President, I ask is becoming safer than ever. Schedule I dies. Much additional effort will be re-
unanimous consent that I too may be- passenger airlines in the United States quired to keep our airways safe as they
come a cosponsor of the amendment. both domestic and international, hav, s become more crowded. I am confident
The PRESIDING OFFICER. Without maintained a record of less than 1 fatal- that Congress will continue to respond
objection, it Is so ordered. Ity per 100 million passenger miles for 1 t to the needs of this Agency on the
Mr. LAUSCHE subsequently said: Mr. consecutive years. The 1960 rate was ground that money is better spent in
President, the amendment of the Senator 0 .75, and this improved to 0.29 In 1961 saving lives and enhancing efficiency
from Delaware [Mr. WILLIAMS 1 of which and 0.26 for 1962. That is equivalent 0 and reliability in aviation than in pay-
I have become a cosponsor, in my opinion I fatality per 400 million miles of trave . Ing the claims resulting from air
is sound, in the interest of the people If we do as well in the last 2 months (f disasters.
of the country, and ought to be adopted. this year as we did in the first 10, 196) The Federal Aviation Agency is press-
There are many reasons why the ex- will show further improvement. Fcr ing forward with research and deve_op-
orbitant pay increases for those now some time now it has been safer to cross ment. This will make possible the instal-
receiving in excess of $10.000 ought not the Nation by plane than In our ow 1 lation of the most efficient traffic control
to be approved. One of the important automobile. and traffic safety equipment. This will
reasons is that the increase in our deficit The FAA was born officially just 5 provide knowledge for adequate han-
operations has made it imperative that years ago when a retired Air Force gen- dling of the human factors involved in
the debt ceiling be lifted from the present eral with a distinguished record in avia - air safety.
figure of $308 billion to $315 billion. tion, Elwood R. (Pete) Quesada, was The Agency has also taken the lead in
The Secretary of the Treasury, Hon. sworn in as the first Administrator. Th a the very difficult program to provide a
Douglas Dillon, recently testified before Agency began operations on December 3 , supersonic commercial air trans:-Iort
the Senate Finance Committee headed 1958. plane so necessary to maintain the
by Senator HARRY F. BYRD, that the ag- Najeeb E. Halaby, a former jet to t vitality and continued growth of the
gregate deficits of the Federal Govern- pilot with a wealth of private and Gov- U.S. aviation manufacturing and avia-
ment for the years of 1961, 1962, and eminent executive experience, was tion transport industries. This will be a
1963, were about $161/2 billion; that with named by President Kennedy as th! Joint effort of Government and private
out the tax cut the deficit for the fiscal Agency's second Administrator on Janu- enterprise, based on a cost-sharing
year of 1964 which began on July 1 will any 19, 1961. arrangement on the.part of the aircraft
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CONGRESSIONAL RECORD - SENATE 19029
I am, therefore, today introducing a
bill to provide a 7-percent Federal in-
come tax credit for State individual in-
come-tax payments. In operation, this
bill would provide that a taxpayer whose
Federal income-tax liability was $100
would be entitled to reduce his payment
to the Federal Government by $7, as-
suming that he paid at least $7 in State
income tax.
What would this mean for such States,
such as Oregon, which now have their
backs to the wall? Immediately, since
Oregon now has a relatively heavy in-
come-tax structure, the Oregon taxpayer
would benefit by the full 7-percent credit.
Since Oregon's tax liability for 1960, the
latest year for which figures are avail-
able, was $383,156,000, the value of the
credit to Oregon taxpayers would be a
total of $26,820,920. This money would
be freed, either to be taxed by the State,
or, if the State should choose not to in-
crease income rates, to serve as a tax re-
duction to Oregon taxpayers.
Second, the tax-credit legislation
would induce States with minimal or no
income-tax structures to adopt at least
a minimum credit-absorbing personal in-
come tax. This, in turn, would relieve
the pressure on Oregon lawmakers to
turn to a regressive sales or excise tax,
in order to compete with neighboring
States in attracting wealth and industry.
The case for Federal income-tax
credits was forcefully and succinctly put
by Walter W. Heller, now Chairman of
the President's Council of Economic Ad-
visors, in a report to the House Ways and
Means Committee in 1959. At that time,
Mr. Heller wrote, in support of a tax
credit:
Its most fundamental purpose is to pro-
tect the power of the purse underlying State
sovereignty and local independence. More-
over, Federal credits, while certain to bring
about greater uniformity not only in income
tax burdens but also in the structure of in-
come taxation at the State level, leave ample
room for variations in State definitions of
income, exemptions, and tax rates.
I ask unanimous consent that the bill
to amend the Internal Revenue Code of
1954, to allow individuals a credit against
Federal income tax equal to 7 percent of
State income taxes paid by them, be
printed in the RECORD at the close of my
remarks, and that it be held at the desk
for a period of 7 days, for cosponsors.
I also ask unanimous consent that a
table showing the maximum authorized
value of the tax credit to each State be
printed at this point in the RECORD.
The PRESIDING OFFICER. The bill
will be received and appropriately re-
ferred; and, without objection, the bill
and chart will be printed in the RECORD,
and the bill will lie on the desk, as re-
quested by the Senator from Oregon.
The bill IS. 2251) to amend the In-
ternal Revenue Code of 1954 to allow to
individuals a credit against Federal in-
come tax for State income taxes paid by
them, introduced by Mrs. NEUBERGER, was
received, read twice by its title, referred
to the Committee on Finance, and or-
dered to be printed in the RECORD, as
follows:
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That (a)
subpart A of part IV of subchapter A of chap-
ter 1 of the Internal Revenue Code of 1954
(relating to credits against tax) is amended
by renumbering section 39 as section 40, and
by inserting after section 38 the following
new section:
"SEC. 39. STATE INCOME TAXES.
"(a) GENERAL RULE.-In the case of an
individual who has paid State Income taxes
during the taxable year, there shall be al-
lowed as a credit against the tax imposed by
this chapter for the taxable year an amount
equal to so much of the State income taxes
paid as does not exceed 7 percent of the indi-
vidual's Federal income tax liability for the
taxable year.
"(b) FEDERAL INCOME TAX LIABILrTY.-For
purposes of subsection (a), the term 'Fed-
eral income tax liability' means the tax im-
posed by this chapter for the taxable year
reduced by the credits allowable under-
"(1) section 33 (relating to foreign tax
credit),
"(2) section 34 (relating to credit for divi-
dends received by individuals),
"(3) section 37 (relating to retirement in-
come credit), and
"(4) section 38 (relating to credit for in-
vestment in certain depreciable property).
"(c) DEFINITIONS AND SPECIAL RULES.-
"(1) STATE.-For purposes of this section,
the term 'State' includes the District of Co-
lumbia; but such term does not include any
political subdivision of a State.
"(2) INCOME TAXES MUST BE DEDUCTIBLE.-
An amount of State income tax paid by an
individual shall be taken into account in
determining the credit under subsection (a)
only if such amount is allowable as a deduc-
tion to the individual under section 164."
(b) The table of sections for such subpart
is amended by striking out
"Sec. 39. Overpayments of tax."
and inserting in lieu thereof
"Sec. 39. State income taxes.
"Sec. 40. Overpayments of tax."
SEC. 2. The amendments made by this Act
shall apply to taxable years beginning after
December 31, 1963.
The table presented by Mrs. NEU-
BERGER is as follows:
Tax credit proposal-State-by-State break-
down of 7-percent credit
U.S. [taxable income=$171,931,909,696; U.S. income tax
after credits=$39,545,380,0001
Federal tax
liability
7 percent
of (1)
Alabama----------------
Alaska------------------
Arizona- ---------------
Arkansas---_-----------
California_-__-_------
Colorado-------------
Connecticut-------------
Delaware --_ _ _ _ _ _ _ _ _ --
District of Colutnbia----
I
Florida -Florida__________________
Oeorgia----------------
l lawaii------------------
Idaho -----------------
Illinois__________________
Indiana-----------------
Iowa--------------------
Kansas__________________
Kentucky_______________
Louisiana---------------
Maine
M ----------------
assachusetts----------
Michigan ---------------
Mhmesota--------------
Mississippi--------------
Missouri _______________
Montana----------------
Nebraska ---------------
Nevad a-----------------
New Hampshire--------
New Jersey_____________
New Mexico____________
New York______________
North Carolina_________
North Dakota___-_______
$384,260,000
56,262,000
253,511,000
164,662,000
4, 516, 589, 000
308,589,000
834, 911, 000
160,581,000
272,534,000
851, 475, 000
1117, 492,000
154,450,000
103,661,000
2, 050, 920, 000
097, 204, 000
477,063,000
396, 367,000
375, 528, 000
448,224,000
147, 835, 000
802,038,000
1, 361, 979,000
1, 907, 063, 000
640, 702, 000
163,794,000
884, 223, 000
110, 088, 000
262,493,000
88, 831, 000
124,605,000
1, 738, 877, 000
145, 092, 000
5,076, 661, 000
510, 969, 000
75, 016, 000
$26,898,200
3,038,340
17, 745, 770
11, 626,340
316,161,230
27,901,230
58,443,770
11,660,670
19,077,380
50,603,250
36,224,440
10,811,500
7, 260270
206,564:400
69,810,580
33, 394, 410
27, 745, 600
26, 286, 960
31,375,680
10, 348, 450
56,142, 660
951, 338, 530
133, 557, 410
44,849,140
11, 465, 580
61, 895, 610
7,706,160
18, 374, 610
(1,218,170
8, 715; 380
121, 721,390
10,166,440
355, 366, 480
36,397,830
5,251,120
Tax credit proposal-State-by-State break-
down of 7-percent credit-Continued
Its. taxable income=9171,031,909,000; U.S. income tax
after credits=$39,545,386,0001
Federal tax
liability
(1)
7 percent
of (I)
(2)
Ohio ------- -------------
$2,384.896,00()
$166,942,720
Oklahoma---------------
364, 287, 000
25, 509, 090
Oregon ------------
383,156, 000
26, 820, 920
Pennsylvania___________
2,586,134,000
181,029,380
Rhode Island _________-_
186, 292, 000
13, 040, 440
South Carolina__________
227,103,000
15,897,210
South Dakota___________
77,376,000
5, 416, 3211
Tennessee_______________
474, 265, 000
33, 108, 5511
Texas--
----------------
1, 693, 213,000
118, 524, 011)
-
Utah--------------------
152,870,000
10,700,900
Vermont________________
55, 892, 000
3,912,440
Virginia-----------------
676.256, 000
47, 337, 920
Washington-------------
661, 813, 000
46, 320, 910
West Virginia -----------
268,931,000
18,825.170
Wisconsin ...............
842, 739, 000
58, 991, 730
Wyoming---------------
70, 643, 000
4,045,010
Other areas-------------
69,078,000
4,835,460
39, 545, 386, 000
2,768, 177,020
Source: "Individual Income Tax Returns for 1060,"
U.S. Treasury Department, Internal Revenue Service,
p. 78, table No. 12 ("Income Tax After Credits").
REPORT ENTITLED "A BUILDING
FOR A MUSEUM OF HISTORY AND
TECHNOLOGY FOR THE SMITH-
SONIAN INSTITUTION" (S. DOC.
NO. 40)
Mr. ANDERSON. Mr. President, pur-
suant to the requirements of section 4
of Public Law 106, 84th Congress, 69
Stat. 189, I submit to the Senate, from
the Joint Congressional Committee on
Construction of a Building for a Museum
of History and Technology for the
Smithsonian Institution, a report entitled
"A Building for a Museum of History
and Technology for the Smithsonian In-
stitution," and ask unanimous consent to
have it printed as a Senate document.
The PRESIDING OFFICER. Without
objection, it is so ordered.
ADDRESSES, EDITORIALS, ARTICLES,
ETC., PRINTED IN THE APPENDIX
On request, and by unanimous consent,
addresses, editorials, articles, etc., were
ordered to be printed in the Appendix,
as follows:
By Mr. McNAMARA:
Text of statements by Senator MUNDT and
Senator MusiIE on the Northwestern Uni-
versity radio program dealing with the ques-
tion: "What Should Be the Role of the Fed-
eral Government in Providing Medical Care
to the Citizens of the United States?"
By Mr. DODD:
Address delivered by Kenneth Holum, As-
sistant Secretary of the Interior for Water
and Power Development, relating to the
proposed Passamaquoddy power project,
Maine.
By Mr. CASE:
Sundry editorials and an article; also a
letter dated October 17, 1963, from himself
to the Attorney General, dealing with civil
rights demonstrations in Georgia.
By Mr. BARTLETT:
Article entitled "The King of Kodiak-
Taking Aim at the Biggest Bear in the World,"
published in the National Observer on Sep-
tember 9, 1963.
By Mr. MONRONEY:
Resolution adopted by the Board of City
Commissioners, Waurika, Okla., relating to
the Waurika project.
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October 22
MESSAGE FROM THE HOUSE
A message from the House of Repre-
sentatives, by Mr.`Bartlett, one of its
reading clerks, announced that the House
had agreed to the amendments of the
Senate to the bill (H.R. 3306) to estab-
lish a revolving fund from which the Sec-
retary of the Interior may make loans
to finance the procurement of expert
assistance by Indian tribes in cases be-
fore the Indian Claims Commission.
ENROLLED BILLS SIGNED
The message also announced that the
Speaker had affixed his signature to the
following enrolled bills, and they were
signed by the President pro tempore:
II.R.75. An act to provide for exceptions
to the rules of navigation in certain cases:
H.R.641. An act to approve an order of
the Secretary of the Interior canceling and
deferring certain irrigation charges, elimi-
nating certain tracts of non-Ir.dian-owned
land under the Wapato Indian irrigation
project. Washintgon, and for other purposes;
11-R. 2268. An act for the relief of Mrs.
Geneva H. Trialer:
11.R. 4589. An act to provide for the with-
drawal and reservation for the Department
of the Navy of certain public lands of the
United States at Molave B Aer!al Gunnery
Range, San Bernardino County, Calif., for
defense purposes; and
H.R. 6377. An act for the rel;af of Sp5c.
Curtis Melton, Jr.
NEED FOR RETURN OF BOXCARS
Mr. MANSFIELD. Mr. President, one
of the needs of Montana and the West is
to have returned to our operating rail-
roads-the Great Northern, the Northern
Pacific, and the-Milwaukee-the boxcars
which now are scattered all over the
United States. We need them to move
our wheat, lumber, and livestock to their
destinations. We cannot get them for
our own use, because the eastern lines
have hogtied them, through payments
on a per diem basis and a refusal to build
their own boxcars.
One way to alleviate this shortage Is
for the Commerce Committee to report
Senate bill 1063. which will increase the
per diem that the railroads which use
other railroads boxcars' have to pay.
Another way is for the Interstate Com-
merce Commission to order the prompt
return to the western roads of the box-
cars which belong to them, and to forbid
the eastern railroads to keep them per-
petually in bondage on the basis of a low-
cost per diem scale.
This is a perennial problem in Mon-
tana and the West. and we are getting
sick and tired of a practice which per-
mits boxcars needed and built for our
section of the country to be sinhoned off
and kept in bondage by railroads operat-
ing in the other sections of the Nation.
I call upon the Association of Ameri-
can Railroads, the Interstate Commerce
Commission, and the Commerce Commit-
tee to correct this unhealthy ,.ituation-
-_ nd soon.
UNITED NATIONS INTERNATIONAL
TRADE CONFERENCE
Mr. LAUSCHE. Mr. President, I am
apprehensive about the purpose and pos-
sible results of the Soviet-proposed
L: nited Nations International Trade eon-
ference, which is scheduled to me( t in
Geneva early next year.
For a number of years. Russia has
been promoting talks, conference.,, or
discussions of the problems of irate na-
tional trade. The United States has
resisted, because of the obvious attc mpt
of the Soviets to use such talks as for ums
fur propaganda.
The lack of success of tha Soviets has
not diminished their fervor. The iud-
den enthusiasm for the proposed son-
ft rence on the part of the d=veto ring
countries is undoubtedly the resul; of
srveral years of propaganda work an.ong
them by the Soviets. The United States
now faces a demand for such a eor Ter-
ence, and has agreed, although u ider
conditions which our diplomats hope will
prevent too much Communist contr,-I of
the subject matter.
Somehow the developing coun ries
feel that they have been deliberately left
out of GATT; and even though the
United States has had a far-rear' ling
program for aiding these countries, hey
have been led to feel that they are b sing
exploited and not treated as equals.
This is the Communist line, pure and
simple.
Whether the so-called safegu trds
under which the conference is b sing
planned can be maintained is a serious
question. There is little question but
that the Soviets will do all possibl s to
inject extraneous issues, publicize e1 rors
the United States may have made, and
generally create the impression that the
capitalistic nations are exploiting t:iose
less developed.
The extent to which the Soviet Iii e is
accepted will be evident when the v )tes
on the various issues raised are ( ast.
The United States is now on the de'en-
sive, and the conference will plan us
more and more in that posture. Can the
West gain by the conference? Car we
:rain as much as we stand to lose?
The recent switch from a polio, of
little or no trade with the Commui fists
to one of open competition for the I.us-
sian market has set the stage for a w de-
open conference, with Russia in a r asl-
Lion to "call most of the shots." Russia
has flipped the coin-heads, the Ius-
slans win; tails. the United States If ses.
Many questions about such a con'er-
cnce arise In my mind; and I believe the
Congress should explore them fully, in
order that the answers may be de ;er-
mined:
First. How certain and secure are the
limitations on the subjects to be iis-
cussed, as outlined by the Prepara ory
Commit tee?
Second. Will the suggestions and Sec-
ommendations to be made by the m sm
hers of the conference come by majority
vote? Will there be "vetos," report: by
the majority, or reports by a minor ty?
Third. What will be the lineup of the
countries participating in any vo Ing
that may transpire? Will each country
have one vote? Is there any hope I hat
the United States can hold the line be-
fore the conference or during the can-
ference?
Fourth. Is it true that one of the
major points to be discussed is the meth-
od by which developing countries may
obtain increased financial assistance-
from the United States, as well its from
other countries-on more liberal terms
than in the past?
Fifth. Is it true that one of the prime
purposes of the conference is to dis-
cuss the creation of some new world
trade organization) Will it be similar
to the defunct ITO--the International
Trade Organization-or the OTC-the
Organization for Trade Cooperation-
both of which could not "get off the
ground" in the United States?
Sixth. Is the planned new world trade
organization to be under the control of
the United Nations? Is it to be related
in any manner to the United Nations?
By what means will Russia be e~:eluded
from membership In the new interna-
tional trade group; or is it intended that
the Communist countries will be full
participants?
Seventh. When the suggestions or rec-
ommendations of the members of the
conference are up for review, accept-
ance, or rejection, what will be the role
of the United Nations?
Eighth. After all of the abov? ques-
tions are answered, will those answers
give us any assurance that the United
States will be able to maintain its posi-
tion that the conference shall not develop
into a forum for Soviet bloc propaganda?
Ninth. Does the United States sin-
cerely desire to be a member of an in-
ternational trade organization to which
many Communist-dominated countries
will belong? What is there to prevent
Red China and Cuba from becoming
members?
Tenth. Do our diplomats feel that
with this conference, they can create a
real "first"-a breakthrough-arid can
outmaneuver the professionals? Has
anyone weighed carefully the possible
gains against the almost sure losses?
Mr. President, present at the confer-
ence in Geneva, next year, will be rep-
resentatives of many of the nations of
Africa, the Far East, and the Middle
East. It is claimed that safeguards
adopted in regard to the agenda will pre-
clude any effort to make those at the
meeting overlook the existing policy with
regard to international trade with the
Sino-Soviet bloc.
My purpose in making this statement
today is to point out that I am gravely
apprehensive about what will happen in
1964. Our voice at the conference will
be limited in its effect. Undoubtedly,
Red Russia will use the meeting as a
platform from which to propagandize
against us.
It is my hope that the ultimate result
of the conference-which will be held
at the same time that the GATT con-
ference will be held-will be to protect
the interests of the citizens and the bust-
PROPOSED SALARY INCREA
to express my opposition to the Pending
proposal to Increase the salaries of high-
echelon officials of the Government.
It is contemplated to raise the salaries
of Members of Congress from $22.500 to
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CONGRESSIONAL RECORD - HOUSE 19131
duction of surplus crops. Judging from
census data, the wheat acreage in the
three project counties declined by almost
a third in the period 1949-59, from
662,672 acres in 1949 to 466,698 in the
latter year. Other, more profitable
crops take over. While the Columbia
Basin project is still in relative infancy,
future patterns already emerge more
clearly. For example, Grant County,
which has about half of the project-Irri-
gated lands within its borders, has ad-
vanced to one of the leading counties
nationally In the production of Irish
potatoes, jumping from 29th place to
11th place in the lineup of producing
counties in the 5-year period 1954-59.
In terms of value of all farm prod-
ucts sold, Grant County now occupies
64th place among the 100 leading coun-
ties in the Nation; only 5 years earlier,
it was not even listed among the top 100.
This kind of enterprise produces
widely ranging, beneficial consequences
felt throughout the economy. Produc-
tion of sugarbeets has brought about the
establishment of processing facilities.
One of the largest sugar plants In the
United States is now located on the
project near Moses Lake. Its recent ex-
pansion of capacity to accommodate
production on the project has been
equivalent to adding an entire new fac-
tory. Facilities such as these create em-
ployment, bring new payrolls, people,
and business into the cities and towns
of the basin.
Production of livestock has also added
new dimensions to the economy of the
Columbia Basin, and, indeed, to the econ-
omy of the West and the Nation. The
rapidly growing western population and
economy have created new demand for
livestock and livestock products. In
1952, the cattle on farms of the Colum-
bia Basin project numbered a mere 1,517.
In 1962, just under 60,000 head were In-
ventoried, not counting the approxi-
mately 87,000 head which passed
through project feedlots. In the face
of this production tempo, feed grains
have had to be imported into the State
of Washington, even though this is
basically uneconomic when such grains
have to be shipped over long distances.
For example, it is estimated that if all
feed grains shipped to the State of Wash-
ington in 1961 had originated In the Mid-
west surplus area, transportation
charges would have added roughly $1.3
million to the West's food bill, or 10
cents more'per pound of choice beef meat
at the grocery store. In this view, proj.
ect production of livestock feed and for-
age serves a definite and worthwhile
economic purpose.
Water resource development through
reclamation is not a haphazard under-
taking, that may or may not yield divi-
dends to the investing taxpayer. On
the contrary, reclamation projects have
proved their worth over and over through
the years as a definite economic force In
all parts of the arid and semiarid West.
The Columbia Basin project, while still
young, will be no exception. It has cre-
ated homes, fares cities, and opportuni-
ties for livelihooS In an area once sage-
brush and the home of jackrabbits.
There are now 20 farms in the basin to the contribution
for each one that existed before. Prop- a growing America.
erty taxes for the irrigated farms exceed
those for dryland farms by 10 times o
more. Retail sales In the three-county; PRO
project area have increased from about
$45 million in 1948 to $104 million in
1958, and estimates indicate that they
will reach nearly $130 million by the end
of 1963. During the same 1948-58 pe-
riod, project-stimulated economic activ-
ity has caused the sales volume of the
wholesale industry to grow by more than
$43 million. Bank deposits, as a rough
measure of the rising financial well-
being of individuals, swelled the coffers
of Adams, Franklin, and Grant County
bankers by more than $34 million, rising
from $24.5 million In 1949 to $58..5 mil-
lion in 1960.
Surely this is a splendid record, con-
sidering the short time that a part of
the Columbia Basin project has been in
operation. But consider also that the
cost of the Columbia Basin project is 95
percent reimbursable; that is, the reve-
nues from power sales and the payments
of irrigators will ultimately repay to the
Federal Treasury all but about 5 percent
of the Federal cost of project construc-
tion. Approximately 17 percent of the
project's cost to date has already been
repaid. In fiscal year 1962, net revenues
from power operations alone brought in
nearly $10 million to be used for repay-
ment of construction costs and interest
charges thereon. Repayment of irriga-
tors continue on schedule.
The facilities of the Columbia Basin
project presently Include four storage
reservoirs, the Grand Coulee power-
plants, nearly 300 miles of canals and
more than 1,600 miles of laterals,
ditches, and drains. Truly a multipur-
pose undertaking, these works not only
generate power and provide needed
water supplies for the economy of the
basin, but also provide substantial flood
control, navigation, and recreation ben-
efits. In 1962, for example, almost 1.4
million visitor-days of recreation use
were reported on the 206,000 acres of
land and water surface and the 1,041
miles of shoreline available to recrea-
tionists and visitors on the project.
Newspaper accounts tell of the haven
which awaits the hunter of waterfowl.
In one county alone hunters bagged
105,000 ducks last year.
Mr. Speaker, the Columbia Basin
project is just one example of what rec-
lamation means to once-unproductive
areas. During the next few weeks I will
tell of projects located all over the west-
ern half of the United States, and point
CONGRESSIONAL EMPLOYEES
(Mr. UDALL asked and was given per-
mission to address the House for i min-
ute to revise and extend his remarks,
and to include extraneous matter.)
Mr. UDALL. Mr. Speaker, from read-
ing press accounts and statements of
some of my colleagues one might assume
that only Congressmen and Cabinet
members would receive increases in com-
pensation under H.R. 8716, which I have
introduced.
I think it should be emphasized that
this is an omnibus pay bill. It provides
for increases in pay for 21/2 million fine
people-our Federal employees in all
three branches of Government.
Among the most dedicated, loyal, and
talented people in Government are those
who work for Members of Congress and
congressional committees. The effec-
tiveness of Congress depends to a very
large degree on these Members' aids
and on committee staffs. We ought to
make certain that their compensation is
kept at a level sufficiently high to keep
them working on Capitol Hill-to pre-
vent them from being lured away by
industry.
Generally in the past, salary -increases
for staff employees of Members of Con-
gress and of congressional committees
have been granted in amounts similar to
increases granted employees in the ex-
ecutive and judicial branches.
However, this policy was abandoned
last year when staff employees of the
legislative branch were granted a 7-per-
cent increase under section 1005 of Pub-
lic Law 87-793, while executive and judi-
cial branch employees under the same
act were granted two Increases totaling
an average of 9.2 percent, with sub-
stantially larger percentage increases in
the upper grades. The first of these two
increases was effective in October 1962
and the second will be effective in Janu-
ary 1964. No January 1964 increase
was provided for legislative branch
employees.
H.R. 8716 will correct partially the
omission made by last year's bill by
granting increases to staff employees on
the Hill which will reflect the total in-
creases proposed for employees under
the Classification Act of 1949 over the
increases the Classification Act em-
ployees received in October 1962.
Examples of the increases proposed by
H.R..8716 are as follows:
Positions
Basic rate
Gross rate
Percentage
of increase
Amount
Now gross
under -
of increase
annual rate
II.R. 8716
Secretary___________________________________________
Clerk
$1,060
$5,002
7.0
$350
$5,352
-----------------------------------------------
Administrative assistant----------------------------
3,800
7.000
8,080
15,349
10.0
18.0
898
2,762
9,887
18
111
Committee counsel---------------------------------
8,100
17,418
24.0
4,180
,
21
598
Committee staff director----------------------------
8,880
18, 884
26.5
5,004
,
23,888
The annual rates for committee staff
employees are subject to a maximum
base rate of $8,880, or a gross annual
rate of $18,884. At one time this base
rate resulted in a gross rate equal to the
top rate of the Classification Act. How-
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CONGRESSIONAL RECORD - HOUSE October 23
ever, the arbitrary percentage increases
granted by the Congress have resulted
in the maximum rate for committee staff
employees of $18,884, which is consider-
ably lower than the top rate under the
Classification Act of $20,000.
H.R. 8716 will remove the base limita-
tion of $8,880, and establish a new lim-
itation which will be equal to the top
rate of the Classification Act, $25,550
under H.R. 8716.
These provisions are just one more of
the many compelling reasons why the
1963 Federal salary legislation should be
enacted.
SOME SIMPLIFICATIONS OF THE
OPPOSITION TO THE EXTENSION
OF THE BRACERO PROGRAM
(Mr. TALCOTT asked and was given
permission to address the House for 1
minute and to revise and extend his re-
marks.)
Mr. TALCOTT. Mr. Speaker, one of
the great attributes of the decisionmak-
ing procedure of the legislative function
of Congress is that the important Issues
are ground fine in the crucible of debate,
the flaws are exposed under the spot-
light of public opinion, facts are sepa-
rated from fiction, and the ovcrt con-
sequences rise to the top over the covert
promises. This is true regarding the
bill to extend Public Law 78, the bracero
program, for supplying necessary sup-
plemental farm labor for peak harvests.
Finally the objectives and conse-
quences are being clarified. There ap-
pear to be two principal reasons for
opposing the extension of the law.
Both, when fully understood, are terri-
bly dangerous to the working people of
America. One group of opponents wants
Mexican nationals to be admitted to the
United States without limitation, as free
men, as permanent residents and citi-
zens. It is easy to sympathize with those
who want to permit unlimited immigra-
tion of Mexican nationals into the
United States. There is a great insati-
able desire by Mexican nationals to
come to the United States permanently.
Job opportunity, wages, working condi-
tions, living conditions are unbelievably
superior in the United States. Freedom
from oppression, governmental controls
and socialism-even communism-dis-
ease and poverty Is immeasurably
greater in the United States. Many
Mexican nationals have relatives,
friends, and former neighbors in the
United States. Life is immensely bet-
ter in the United States. Thousands of
applicants for permanent immigration
from Mexico to the United States are
denied each year. The bracero program
is an irritating impediment to the un-
limited immigrationist.
if the immigration law and regula-
tions were relaxed, hundreds of thou-
sands of Mexican nationals would swarm
over the border and into every State in
the Union.
Such permanent immigration would
cause immediate and widespread havoc
in our labor force. Most of the many
Mexican immigrants would be unskilled
and would at first compete with native
American unskilled labor-naturally
forcing many of our citizens out of work
and depressing wages because the Mex,-
cans are used to working for much le is
and need much less than our domest.c
workers.
The Mexican national is bright, indu.;-
trious, ambitious, and eager and able ;o
learn. He would soon branch out in o
semi-skilled and skilled employment -
offering strong competition for the jo is
now held by our citizens. They would
also migrate rapidly from the bord !r
and agricultural areas into the urbi n
and Industrial areas offering more ai.d
more deadly competition in areas, er. i-
ployments, and Industries already bu --
dened and anguished by unemployme it
and underemployment. These Mexici n
Immigrants would first seek work ai.d
homes in the border and agricultural
areas, but when the first harvests were
completed and the farm work peters
out, they would quickly migrate in ;.tl
directions and Into all Industries.
The schools through which their chil-
dren moved-perhaps many times a
year-would be thoroughly disrupted -
detracting immeasurably from the qual-
ity and quantity of the education of the
migrants as well as the American re-
El-dents. The extraordinary additional
cost and disruption would seriously hi: i-
der all primary and secondary education
in America.
After the harvests, from 3 to 6 mont is
of the year. there would be no jobs f )r
them in America. In almost every oth !r
industry and occupation there is a su
plus of labor. Therefore, newly arriv id
Mexican immigrants-freemen and
their families-would need and seek re-
lief and welfare assistance. This n( w
demand could very well bankrupt ma: iy
local and State welfare and unemplo --
merit insurance programs, as well is
force a wider and wider migration avid
a further depression of wages and wor s-
Ing conditions, not only among the u i-
skilled, but among the semiskilled a id
even skilled workers.
We simply are not prepared now f Dr
a sudden inundation of hundreds of
thousands of poor, unskilled workers a id
their families from Mexico or any otter
-nation, We have some obligations to
the needy and poor of the world as d,
especially, our Mexican neighbors, tut
we have a primary and immediate obi-
gation to our own poor, needy, and u:i-
employed In the United States.
'i hese promoters of unlimited imn.i-
gration from Mexico into the United
States oppose the bracero. The brace ro
program limits the demand for Mexic in
migration Into the United States to the
harvest seasons only and to agricultu -al
work and agricultural areas only. In
the event of the elimination of the bi a-
cero program, many pressures for Ln-
Iimited immigration would greatly aid
dramatically increase. Modification of
the present Immigration laws and new
Immigration laws would be loudly c e-
nianded.
Another group which opposes an r x-
tension of Public Law 78 is composed of
some-but not all, by any means-bosses
in organized labor. They are few, I ut
they are vocal and persistent. Th tir
motives vary from a commendable sc lf-
less interest in improving the wages and
working conditions of agricultural a-
bor to a less commendable selfish inter-
est of adding dues to the union coffers
for the perpetuation of their own .lobs.
Some responsible leaders in reputable,
knowledgeable labor unions openly sup-
port an extension of the bracero pro-
gram. They know it is necessary and
that it produces good jobs for thousands
of men and women in farming and allied
industries who would not otherwise en-
joy good-or any-employment.
Some labor leaders remain aloof, pre-
ferring not to offend those in organized
labor who are against the bracero. They
would like to be loyal, but they would
also like to be right. Among labor-
leaders, bosses, and the rank and file-
I hear from the selfish bosses, not from
the rank and file. The reason is simple.
The bosses want to enlarge the number
of dues payers. Dues are their lifeblood.
Dues from the rank and file perpetuate
the bosses in power. The rank and file,
the workers, the men who need new jobs
or who need to maintain their present
jobs-in agriculture and allied indus-
tries, such as packing, packaging, manu-
facture, processing, fertilizing, and
transportation by truck and by rail-
road-know how important it is that the
crops be harvested, and how vital sup-
plemental labor is during the harvest
season. They know that when crops
are not planted, or when they spoil,
many men and women lose jobs like fall-
ing dominoes. The workers know that
the bracero does only the job that. will
not be done by domestics. The wo?kers
also know that when the harvest is com-
plete, the braceros go home and do not
take the jobs of other American citizens.
He knows the bracero does not jeopard-
ize his welfare and unemployment sys-
tems. The worker likes the bracero.
When there is a bracero around, `.here
is always work for a domestic. The
worker does not write his Congressman
to vote against Public Law 78. Only a
few bosses, a very few, write against the
program.
An inundation of Mexican nationals, as
permanent residents, as freemen, to re-
place the bracero would be a large new
source of prospective dues payers and
power to the labor boss.
This is the crux of why we receive
reams from a few labor bosses, who are
vocal and have lobbyists and Washing-
ton representatives; and also why we
hear privately from the rank and file
and from some responsible leaders of
reputable unions who favor an extension.
I would like to suggest that the heads
of labor organizations tell their members
both sides of this controversy. Few
problems have simple answers. There
are two sides-and each must concede
that his side is not the only side with
any merit. Give the worker the full
story from both sides. Let the laborer
make his own decision on the bas>is of
how the solution and consequences will
affect him and his family. When the
worker is given the facts, the full story,
both sides of the controversy, I will trust
his judgment.
Our immigration laws admittedly need
revision. Many suggestions for re'asion
are being considered in Congress now.
Immigration laws are important, but
delicate. Any scheme to force a major
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1963 CONGRESSIONAL RECORD - SENATE
$35,000; to raise the salaries of Cabinet
officers from $25,000 to $40,000; to raise
the salaries of the Deputy Secretary of
Defense, the Under Secretary of State,
the Administrators of AID, HHFA,
NASA, and VA and the chiefs of mission,
who now receive $27,500, to the top level
of a new salary of $38,500.
It is proposed that another class of
Federal officials receive a pay raise from
a present level of $25,000 to a new level
of $36,500. If the bill is enacted into
law, Supreme Court judges will receive
a salary increase from a present level of
$35,000 to a new level of $60,000. Legis-
lative employees and others will also be
affected by the bill.
In my judgment, a grave mistake will
be made if the bill is passed. If any-
thing, the Congress of the United States
and the high echelon officials ought to
set an example, proclaiming to the peo-
ple of the Nation that this is a time
when we should ask not what the Gov-
ernment will do for us but what we can
do for Government.
The example proposed in the bill will
rise to plague us. We will be rendered
defenseless against the increasing de-
mands that will come from Federal em-
ployees for increased salaries and wages.
The argument is made that we cannot
get judges, that we cannot get people to
run for membership in the House of
Representatives or in the Senate, and
that we cannot get prosecutors and top
level officials to work for the Federal
Government.
To that argument I say, "Balderdash."
Mr. KUCHEL. Mr. President, will the
Senator yield for a question?
Mr. LAUSCHE. In a moment I shall
yield. For every Senator in Congress
there are 100 persons who would like to
displace him. For every Member of the
House of Representatives there are 500
persons who would like to have the job.
I wish to repeat what I said some time
ago: If one should come to the Congress
with a loaded shotgun and threaten to
use it, he could not get out of the Capitol
the Members of the House and the Mem-
bers of the Senate. Yet it is argued that
unless we increase salaries, our country
will go to the dogs because no one will
run for the Senate or for the House. I
cannot subscribe to that argument.
A proposal has been made to raise the
salaries of Supreme Court judges from
$35,000 to $60,000. I wonder if there is a
Senator or a Representative who can
point to one instance in which an ap-
pointment to the Supreme Court has
been declined by a lawyer because the
salary is inadequate? For every judicial
vacancy that exists on the Federal bench
in Ohio, I have at least 30 applicants for
the post. Let. us not forget that the
judges are not only remunerated liber-
ally but also receive other benefits. The
other day I read in the newspaper that
certain judges of the District of Colum-
bia who are performing work akin to
the duties of a municipal judge of Cleve-
land become entitled, at the end of 10
years' service, to a full salary for the re-
mainder of life. If that is not robbing
the taxpayer, I do not know what theft
means.
I have been in office for some time in
my life. I have learned one principle:
No. 169-6
If you want to possess the ability to turn
down improper demands, keep yourself
clean. Keep yourself in a position in
which you can say, "I have denied my-
self of this benefit which you ask me to
give."
But I suppose that before the present
year has passed away the bill providing
for increased salaries for top-level Fed-
eral employees will be passed.
I now ask Senators to listen particu-
larly to some information which will be
startling to them. On the basis of re-
ports made in October 1962, the average
weekly earnings of full-time State em-
ployees, except those in education, is $91
a week. For the same period in 1962
the average Federal employee's wage was
$113 a week. Throughout the country
the average weekly compensation of
State employees is $91, and the average
for Federal employees is $113.
In Ohio the average State employee's
salary is $86. Ohio must compete with
the salaries and wages paid to Federal
employees, who in Ohio are now earn-
ing $117 a week. In Ohio the Federal
employees are earning $35 a week more
than the State employees.
The information which I am stating is
the product of a tabulation made by a
U.S. public official in Ohio. The tabula-
tion states:
It is interesting to note that there are
nearly two Federal employees in Ohio for
every State employee.
That is another bit of shocking in-
formation: For every State employee
there are two Federal employees. The
way we are moving forward, the time
will soon be at hand when there will
probably be three to one.
The author of the tabulation further
states:
It is also noteworthy that average earnings
of Federal employees in Ohio are 35 percent
higher than those of State employees.
Mr. President, that fact is true prac-
tically everywhere.
I ask unanimous consent that the
tables to which I have referred be printed
at this point in the RECORD.
There being no objection, the tables
were ordered to be printed in the RECORD,
as follows.
19031
Average weekly earnings of full-time State
employees, except in education, October
1962-Continued
Full-time
State
employees
Average
weekly
earnings
23. New Mexico_______________
6,799
$88.61
24. Iowa----------------------
16, 532
88. 13
25. Pennsylvania_____________
77,405
87.63
26. Rhode Island______________
7,899
86.68
27. Ohio- ---------------------
46,838
86.56
28. Maryland_________________
20,100
86.30
29. North Dakota_____________
4, 511
85.55
30. North Carolina____________
28,555
85.36
31. Kansas -----`--------------
14,223
84.90
32. South Dakota_____________
4.986
84.90
33. Maine---------------------
8.987
82.69
34. Kentucky________________
19,385
80.91
35. Indiana___________________
23,126
79.74
36. Georgia______________
20,435
79.44
37. Missouri__________________
23,757
79.06
38. Virginia___________________
30,470
77.71
39. Nebraska ------------------
9,717
76.59
40. Texas_____________________
46,862
76.50
41. Florida--------------------
30, 989
75.19
42 . Alabma__________________
17, 229
75.16
93. Louisiana_________________
31,197
74.59
44. Delaware ----___________?_
4,886
73.86
45. South Carolina____________
15,003
73.00
46. Oklahoma_________________
16,520
72.72
47. West Virginia-------------
15, 598
68.64
48 . Misissippi________________
12, 638
67.00
49. Arkansas__________________
11, 767
65.42
50. Tennessee _________________
20, 605
65.08
Source: Bureau of the Census "State Distribution of
Public Employment in 1962," April 1963; Washington,
D.C. Computed from October 1062 full-time equiva-
lent employment and total payroll, for functions other
than education.
Average weekly earnings of Federal em-
ployees covered by unemployment com-
pensation, 1962
All States_______________
1. District of Columbia------
2. Alaska______--------------
3 . Alabama__________________
4. California_________________
5. Maryland_________________
6. Ohio------------ ------- --
7. IIawaif------------------ __
8. Oregon--------------------
9. Nov Jersey________________
10. New Ilampshire___________
11. Pennsylvania______________
12. Utah ---------------------
13. Tennessee_________________
14. Now York_________________
15. Florida____________________
16. Washington_______________
17. Massachusetts_____________
18. Colorado__________________
19. Virginia___________________
20. New Mexico _______________
Average weekly earnings of full-time State 23. Nevada____________________
employees, except in education, October 24. Arizona____________________
10.1 , 25. Rhode Island______________
Full-time
State
employees
Average
weekly
earnings
26. Oklahoma_________________
- 27. Missouri__________________
28. Wyoming ------- ---------
29. Delaware------------------
30 . Illinois____________________
31. Montana__________________
- 32. Louisiana-----------------
Texas
33
All States---------------
$91.42
-
I . Alaska_______________
3,129
147.38
2. California_________________
93,619
124.69
3. Ilawail--------------------
5,924
114.38
4. Nevada___________________
2, 705
111.60
5. Michigan------------------
84,316
109.71
6. New York_________________
109,104
104.94
7. Washington_______________
20, 468
101.68
8. Wisconsin-----------------
16,972
101.48
9 . Oregon--------------------
15,863
91.48
10. Illinois -_____--------------
44,654
98.84
11. Colorado__________________
11, 741
98.36
12. Utah ----------------------
5, 803
98.36
13. Connecticut ---------------
20,362
97.17
14. Arizona___________________
8, 313
96.07
96:03
15. Vermont__________________
8,917
18.-Montan.a__________________
5,925
95.72
17. Mlsmesota________________
19,075
94 72
18. Wyoming_________________
3,355
94. 17
10. Massachusetts_____________
87,710
93.13
20. Now Jersey________________
28, 670
92.99
21. Idaho-----------------
6, 392
91.50
22. New Hampshire -----------
6,191
89.48
_____________________
34. Georgia --------------------
35. Indiana___________________
36. Vermont__________________
37. Idaho
ota________
3038. 38. Idaho
y_________________
41. South 40. South Wisconsin
Caro_l__ina______________
____
42, West Virginia_____________
43. Mississippi________________
44. Nebraska__________________
45. Kansas
_________.________._
46. Arkansas
.47. Maine_____________________
48. Iowa -------------
49. North Dakota____
50. South Dakota___
51. North Carolina__
52. Virgin Islands_____________
53. Puerto Rico_____
Average
Average
Federal
weekly
employees
earnings
212, 830
138.32
14,796
135.22
67,684
121. 11
266,249
118.57
77, 436
117.97
95,740
117.12
27, 771
116.36
22, 724
116. 04
59, 783
115. 99
13,934
IN. 80
136, 036
114.93
30, 237
113.87
39,533
113.35
185,735
113.07
55,880
112.83
52, 416
112.82
68,196
112.72
39, 097
112.37
87, 809
112.05
26,044
111.98
48,105,
110.72
16, 113
110.58
7, 216
109.82
22, 806
109.47
13,695
109.21
47,220
108.69
56,048
108.62
6,023
108.49
4,204
108.11
108, 954
107.92
11,628
107.31
26,249
107.05
129.770
106.15
65, 545
105.79
35,776
106.02
3,522
104.84
28, 015
104.33
9,053
103.80
32,884
103.65
23,092
102.65
28,141
102.37
11,609
102.18
19,465
101.82
19,402
99.41
25,091
98.60
16,630
97.58
9,243
97.34
21
321
97.15
4
8,504
:
96.38
11, 384
96.83
37, 007
93.17
14,210
91.19
9,302
87.62
Source: U.S. Bureau of Employment Security, from
tabulations of State agencies.
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CONGRESSIONAL RECORD - SENATE October 22
Mr. LAUSCHE. So the band begins demands, we should make certain that
to play, the hurdy-gurdy moves on, and we follow a course of conduct that will
the Congress contemplates making place armor upon our bodies to enable
things worse than they are. The bill of us to say "No," rather than to weaken
which I speak ought not to be passed. ourselves through the act of granting in-
If it is passed, it will rise to plague every creased pay, and thus render ourselves
Member of Congress. It will rise to incapable of saying "No" when the time
plague us because we shall be rendered comes.
defenseless in saying to pressure groups, The PRESIDING OFFICER. Has the
"I cannot give you what you ask. You Senator from Ohio concluded?
are not entitled to it." The pressure Mr. LAUSCHE. I have concluded, and
groups will answer, "You gave yourself I thank the Chair for his courtesy to me
V ,
h
e
t
a pay raise of $12,500. You gave
Supreme Court Judges a pay raise of
$25,000, and a 50-percent raise in pay to
district Judges."
My inquiry is, How will we answer
those statements? We shall not be able
to do so.
Mr. President, I believe the Senator
from California [Mr. KUCHEL I wanted
to ask me a question.
Mr. KUCHEL. I noticed in the press
the other day that a comparison was
made between the Secretary of Defense,
Mr. Robert McNamara, who receives
$25,000 a year for administering a $50,-
000 million a year defense budget, vis-
a-vis the police chief of Chicago, as I
recall, who receives, I believe, $30,000
a year.
Mr. LAUSCHE. What is it the Sena-
tor wishes to ask me?
Mr. KUCHEL. I must say I believe
that is not defensible.
Mr. LAUSCHE. If we are going to fix
salaries on the basis of the magnitude of
the moneys expended, we shall be in an
indefensible and absurd position. If I
were to tell the people of the State of
Ohio that I want to be in the Senate
merely because of the $35,000. they would
have a right to tell me to get out.
Mr. KUCHEL. The Senator from
Ohio, I believe, is correct, but if he will
let me comment further-
Mr. LAUSCHE. I will allow the Sen-
ator to ask his question.
Mr. KUCHEL. I believe that the peo-
VISIT TO THE SENATE BY GAETANC
MARTINO, PRESIDENT OF THE
EUROPEAN PARLIAMENT
Mr. MANSFIELD. Mr. President, Mr
Gaetano Martino, President of tht
European Parliament, has honored tht
Senate by visiting us In this Chambe:
today.
The European Parliament is a 142
member body which is the parliamentar:
branch of 3 European communities
duction inserted in the body of the
RECORD.
There being no objection, the table
was ordered to be printed in the RECORD,
as follows:
Estimated average annual tax reduction per
taxpayer under H.R. 8363 when fully cfjec-
tive, by adjusted gross income class
Tax reduo-
tion (joint
committee
calculation)
Tax
reduction 1
n to $3,000-----------------
$49
X57
$3,2200 to S5,666 ------------
67
100
$5,000 to $10,000_-___------
90
159
000 to $20,000-.----.._-
$10
165
:512
,
000_---------
000 to $50
$20
560
1120
,
,
$50
00o and over .---.--.-..
2, 194
25
.
All taxpayers --------------
110
174
I As estimated by Joint Committee on Internal Reve-
nue Taxation (Oct. 14, 1963) and shown in table which
treats Joint returns as 2 taxpayers. Table Is labeled
"Estimated average annual tax reduction per Individual
income taxpayer."
2 Excluding capital gains; joint returns counted as 1
taxpayer.
Source: OOIce of the secretary of the Treasury, Office
of Tax Analysis, Oct. 17, 1963.
Its membership includes the leadini:
parliamentarians of the Six-France.
West Germany. Italy, Belgium, th'-.
Netherlands, and Switzerland-and it al
ready is the most responsible interparlia
nientary group in Europe. During th
next several years it will almost certain]:
acquire increased responsibility and, In
time, become of greater significance in
the affairs of Europe.
As President of the European Parlia -
meirt and as a well-known statesman i
in his own right-he is a former NATe)
"wise man" and Italian Foreign Min
aster-President Martino Is a man c f
respect and authority among the Euro-
pean parliamentarians.
We are indeed fortunate and honore i
to have him visit with us today. [AF-
plause. Senators rising.]
The PRESIDING OFFICER. On bt -
half of the Senate, the Chair extends a
cordial welcome to our distinguishe3
guest.
pie of the United States need to attract
to a position such as that of Secretary COMPUTATION OF PROPOSED
of Defense the finest, the most able, the INCOME TAX REDUC'T'IONS
most competent person that we can find
for that very important job. The com- Mr. SMATHERS. Mr. President, cn
parison I have just made demonstrates October 15, 1963, the able and distil -
that, although the skills which are re- guished chairman of the Senate F -
quired by a law enforcement officer in nance Committee had inserted in ti e
an American city are not to be under- RECORD a table prepared by the staff I if
estimated, they are hardly to be com- the Joint Committee on Internal Re-
pared with the skills and techniques re- enue Taxation indicating the averai e
quired by the Office of the Secretary of annual tax reduction pthe tax er Individual it.
Defense.
It occurs to me that this indicates 8383. as passed by the House of Repr:-
there is something wrong with laws sentatives.
which downgrade, in my judgment-and The table was prepared on the a i-
I am not going to make a long speech on sumption that persons filing a joint r
this subject-the qualifications for and turn should be counted as two taxpayer s.
the salary of one of the most important Inasmuch as persons filing a joint r,--
positions in the Federal Government. turn represent one economic unit. I
That Is the only thing that I suggest. asked the Treasury Department to fu
Mr. LAUSCHE. If that were the only nish comparable figures for me to inc I-
basis on which we would pay to attract sate the average annual tax reduction
people to enter Government service, we counting joint returns as a single to i-
would be doomed to destruction. If a payer, which I believe gives a more ref t-
soldier who is called to duty should de- Istic picture.
Inand that he be paid in accordance with Because of the great interest in ti is
the significance of the work that he is matter, I ask unanimous consent at t1 Is
doing, there would be no end to the pay. time to have the table prepared by I. ie
Mr. President, I repeat that if we are Treasury Department comparing these
to be able to withstand the inordinate two methods of computing the tax se-
WISE MEN ARE ABLE TO REVISE
THEIR THINKING: EISENHOWER
ON POPULATION CONTROL
Mr. GRUENING. Mr. President, when
I discussed at some length on October 10
the population problem confronting
mankind I pointed to the paradoxical
situation which exists when we provide
technical and economic assistance to na-
tions, thereby helping developing nations
grow more food with which they barely
keep alive their burgeoning populations.
Such assistance, I repeat, merely helps
the world take a step backward.
Therefore, I am pleased today to call
to the attention of the Senate nearly
similar words written by former Presi-
dent Eisenhower in his article "Let's Be
Honest With Ourselves," part 2, appear-
ing in the October 26, 1963, issue of the
Saturday Evening Post.
Says President Eisenhower:
The time has come, also, when we must
take into account the effect of the popula-
tion explosion on our mutual-assistance sys-
tem. ? ' ? Unless we do, it may smother the
economic progress of many nations which,
with our technical and economic assistance
are striving to build a decent standard of
living. ? ? ? There is no real progress Cr se-
curity to a nation which, with outside help,
raises its productive capacity by 2 percent
a year while the population rises 3 percent.
Such thinking is welcomed and -eal-
istic and I commend the former Presi-
dent for reversing his earlier thinking,
and frankly admitting that he has, its he
does in his article when he says:
Population control is a highly sensitive
problem. of course. When I was President I
opposed the use of Federal funds to provide
birth-control Information to countries we
were aiding because I felt this would violate
the deepest religious convictions of large
groups of taxpayers. As i now look back, it
may be that I was carrying that conviction
too far. I still believe that as a national
policy we should not make birth-control pro-
grams a condition to our foreign aid, but we
should tell receiving nations how population
growth threatens them and what can be done
about It. Also, it seems quite possible that
scientific research, if mobilized for the pur-
pose, could develop new biological knowledge
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1963 CONGRESSIONAL RECORD - SENATE 19809
the minority is authorized to select one per- TRIBUTE TO THE LATE by Which the Secretary of the Interior
son for appointment, and the person so se- FRANCIS CARR would be directed to place a suitable
lected shall be appointed and his compen-
sation shall be so fixed that his gross rate Mr. KUCHEL. Mr. President, America plaque at the site of the reservoir.
shall not be less by more than $1,600 than owes her greatness to men and women Mr. President, I ask unanimous con-
the highest gross rate paid to any other per- who have unselfishly devoted their time, sent that the text of the joint resolution
son employed under the authority of this talent, and energy in the public interest be printed at this point in the RECORD,
resolution; and (3) with the prior consent to their fellow man. Today I call upon
concerned, to utilize the reimbursable serv- together with resolutions by the Shasta
the heads of the departments agencies the Congress to honor a Californian who, County Board of Supervisors and the
co
ices, information, facilities, and personnel of in his lifetime, worked assiduously for Greater Redding Chamber of Commerce,
any of the departments or agencies of the his State. each urging approval of such a reso-
Government. The late Judge Francis Carr, of Red- lution.
SEC. 2. Expenses of the committee, under ding, Calif., was a water lawyer for more The PRESIDENT pro tempore. The
this resolution, which shall not exceed $50,- than 40 years. His was a distinguished joint resolution will be received and ap-
00o through January 31, 1964, shall be paid record of public service in varied fields propriately referred; and, without ob-
from the contingent fund of the Senate upon
vouchers approved by the chairman of the for the good of his fellow Californians, jection, the joint resolution and resolu-
committee. In 1932, he was appointed to the State tions will be printed in the RECORD. water The joint resolution (S.J. Res. 130) to
The PRESIDENT resources commission. He also
pro tempore. Is served as chairman of the State relief designate the powerhouse on Clear Creek
there objection to proceeding to the con- commission during the discouraging days at the head of Whiskeytown Reservoir,
sideration of the resolution? of the depression in the 1930's. He served in the State of California, as Judge
There being no objection, the Senate his local community as judge. In all Francis Carr powerhouse, introduced by
proceeded to consider the resolution. these and other ways, he served his na- Mr. KUCHEL, was received, read twice by
Mr. CURTIS. Mr. President, I thank tive Shasta County, his State, and thus, its title, referred to the Committee on
the chairman of the committee for his his Nation. Interior and Insular Affairs, and ordered
courtesy to all the members of the com- Judge Carr helped to develop a plan to be printed in the RECORD, as follows:
mittee, particularly those of the minor- and obtain legislative support for the Resolved by the Senate and House of
ity. I appreciate the fact that the reso- great Central Valley project on which Representatives of the United States of
lution provides for minority represents- construction began in 1935 to meet sera- America in Congress assembled, That the
tion staffwise. The task before the com- ous water problems in vast areas of Cali- cap city pod and thing thousand kiat the
mittee is not a pleasant one, but it is one fornia. Following through, he was, for head of ity powerhouse oR servo Creek at the
that involves the good standing and in- hea Whiskeytown Reservoir shall wer-
be several years, the principal advocate for after be known as Judge Francis Carr poer-
ttegregrity ity followed of judiciously the entire but Senate. It thoroughly. must the Trinity River division of the Central house in honor of Judge Francis Carr of
Valley
The PRESIDENT pro tempore. With- -coun committee project.
o that served as bring g about about chairman of reclamation devel-
out objection, the resolution (S. Res, 221) the a two-county
construction opement including the
tu of that particular divi- great Central Valley
is agreed to. siOri. project developed to meet the serious water
Though Judge Carr died in 1944, I can shortages in the San Joaquin Valley and
Sacramento Valley of California. The Sec-
BILL AND JOINT RESOLUTION testify, as a sponsor of legislation au- retary of the Interior is hereby directed to
INTRODUCED thorizing the Trinity River project in place a suitable plaque at the site. Any law,
A bill and a joint resolution were in- 1955, that the efforts of Judge Carr on regulation, document, or record of the
troduced, bill
read the first time, and, in- behalf of this project were indeed of cru- United States in which such powerhouse
cial importance in bringing this project is designated or referred to shall be held to
unanimous consent, the second time, and for the people into being. refer to such powerhouse under and by the
referred as follows: Judge Carr advocted building Whis- name of Judge Francis Carr Powerhouse.
By Mr. HUMPHREY: keytown Reservoir in Shasta County as The resolutions presented by Mr.
S. 2278. A bill for the relief of Elmer O. apart of developing the tributaries of the KUCHEL are as follows:
Erickson; to the Committee on Post Office
and Civil Service. upper Sacramento River for flood con- RESOLUTION 63-95
By Mr. KUCHEL: trol and water conservation as a part of Resolution of endorsement by - the Board
S.J. Res. 130. Joint resolution to designate the project. That reservoir is now of Supervisors of the County of Shasta,
the powerhouse on Clear Creek at the head emerging as a fine recreational asset. State of California
of Whiskeytown Reservoir, in the State of A part of this project is the 130,000- Whereas the contents of the attached re-
California, as Judge Francis Carr power- kilowatt capacity Clear Creek Power- solution of the Greater Redding Chamber
house; to the Committee on Interior and In- of Commerce re u
sular Affairs. house near Redding and a short distance q esti the senate and
(See the remarks of Mr. KUCHEL when he from Shasta, Calif., the historic settle-
Introduced the above joint resolution, which ment where nearly a century ago Judge States of America in Congress assembled
appear under a separate heading.) Francis Carr's father, a pioneer lawyer to designate the 130,000-kilowatt capacity
powerhouse on Clear Creek and teacher, first established his home at the head of
Whiskeytown Reservoir as the Judge Francis
RESOLUTION after moving to California from upstate Carr Powerhouse and direct the Secretary
New York. This powerhouse, at the of the Interior to place a suitable plaque
INQUIRY INTO FINANCIAL OR BUSI- head of Whiskeytown Lake, is already at the site to make known the wishes of
NESS INTERESTS OF ANY OFFI- producing power which helps to defray the Congress has been made known to the
CER OR EMPLOYEE OR FORMER project costs and to provide a return on Board of Supervisors of the County of Shas-
OFFICER the Federal Government's investment. ta, State of California; and
OR EMPLOYEE OF THE It is fitting, I think, that the Clear Whereas the Board of Supervisors of the
SENATE Creek Powerhouse, largest of the Trinity County of Shasta are in accordance with
Mr. JORDAN of North Carolina, from River division, with its constant energy the w, therefore, be itssed in said resolution:
the Committee on Rules and Adminis- output, be named for and dedicated to Resolved, That the Board of Superviors
tration, reported an original resolution Shasta County's native son, the late of the County of Shasta, State of California,
(S. Res. 221) authorizing the expendi- Judge Francis Carr, who served with do hereby place their endorsement upon
ture of funds by the Committee on Rules tireless energy to achieve an exceptional said resolution.
and Administration in discharging its record of public service, including the Attest:
responsibilities under Senate Resolution development of California's water and FLOYD H. MORGAN,
212, inquiry into the financial or busi- power. Chairman.
ness interests of any officer or employee Mr. President, I introduce, for appro- County RICHARD C. County N,
or former officer or employee of the Sen- priate reference, a joint resolution by Clerk.
ate, which was considered and agreed to. which the Congress would designate a RESOLUTION OF THE GREATER REDDING CHAM-
(See the above resolution printed in 130,000-kilowatt-capacity powerhouse on DER OF COMMERCE
full when reported by Mr. JORDAN of Clear Creek at the head of Whiskeytown Whereas the dams and powerhouses of the
North Carolina, which appears under the Reservoir in Shasta County, Calif., as Trinity River division of the Central Valley
heading "Reports of Committees".) the Judge Francis Carr Powerhouse, and project in California are nearing completion,
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CONGRESSIONAL RECORD SEN TE November 1
and the 130,000-kilowatt capacity Clear Creek and other Senators) (No. 280) to House
powerhouse near Redding, Calif., at the head bill 7885, supra. which was ordered to lie
of Whlskeytown Lake, is already producing on the, table and to be printed.
power which helps defray project costs and Mr. TH RMOND Mr. President, I
'
a
provide a return on the Federal Government
investment; and
Whereas the late Judge Francis Carr, of
Redding, Calif., a water lawyer for more
than 40 years, was the principal advocate for
several years of the Trinity River project,
serving as chairman of a two-county com-
mittee to bring about its construction and
also in the early 1940'x, prior to his death
in 1944, advocated building Whiskeytown
Reservoir as a part of developing the tribu-
taries of the upper Sacramento River for
flood control and water conservation: and
Whereas the late Judge Francis Carr was
appointed In 1932 by Gov. James Roiph.
Jr.. to the State water resources commis-
sion, which commission helped develop a
plan and obtained legislative support for
California's great Central Valley project on
which construction began In 1935 to meet
serious water shortages in California's Ban
Joaquin Valley and serve other multiple pur-
poses: and
Whereas In addition to his distinguished
record of public service In varied fields for
both Republican and Democratic State ad-
ministrations, Including service as chairman
of the State relief commission during the
discouraging days of the depression In the
1930's, Judge Francis Carr, as be was affec-
tionately known for his onetime service as
justice court judge, was one of California's
outstanding attorneys In the water and power
field and successfully litigated several prece-
dent-setting cases in California water law;
and
Whereas Clear Creek Powerhouse of the
Central Valley project Is located a short dis-
tance from Shasta. Calif., the historic
settlement where, nearly a century ago, Judge
Francis Carr's father, a pioneer lawyer and
teacher, first established his home after mov-
ing to California from upstate New York;
and
Whereas it is most fitting and proper that
the Clear Creek Powerhouse, largest or the
Trinity River division, with its constant
energy output, be named for and dedicated
to Shasta County's native son, the late Judge
Francis Carr, who loved his native country,
serving her and her people with tireless
energy to achieve an exceptional record of
( alifornia's water and power resources: Now, 'N' N
therefore, be it
Resolved by the Greater Redding Chambef
to the Senate and House of Representatives
of the United States of America In Congress
assembled that they do hereby designate the
130,000-kilowatt-capacity powerhouse on
Clear Creek at the head of Whlskeytown
Reservoir as the Judge Francis Carr Power-
house and direct the Secretary of the In-
terior to place a suitable plaque at the site
to make known the wishes of the Congress.
ROBERT C. ANDERSON.
President of the Greater Redding Cham-
ber of Commerce.
FOREIGN ASSISTANCE ACT OF
1963 - AMENDMENTS (AMEND-
MENT NOS. 284, 285, 286, 287, 288,
AND 289)
Mr. ELLENDER submitted six amend-
ments, intended to be proposed by him.
to the bill (H.R. 7885) to amend further
the Foreign Assistance Act of 1961, as
amended, and for other purposes, which
were ordered to lie on the table and to
be printed.
Mr. HOLLAND proposed an amend-
ment (No. 290), to the amendment sub-
mitted by Mr. MANSFIELD (for himself
submit, and ask to have printed, an
amendment (No. 291).
I submit, and ask to have printed, an
amendment to HR. 7885. The purpose
of this amendment is to delete from
the bill in its entirety section 402 which
authorizes the President to grant most-
favored-nation treatment to countries
within the Communist bloc.
I do not believe there is any justifica-
tion for this provision, and I intend to
have more to say concerning it when
I call this amendment up for considera-
tion.
The PRESIDENT pro tempore_ The
amendment will be received, printed, and
lie on the table.
Mr. DOMINICK. Mr. President, I
submit an amendment to House bil:
7885. The amendment is designed tc
asssur that the Appropriations Commit-
tees will have the right to review the por-
tion of the Development Loan Func
which consists of receipts which com(
back from loans which have previously
been made.
The PRESIDENT pro tempore. Thf
amendment (No. 292) will be received
printed, and lie on the table.
Mr. YOUNG of Ohio. Mr. President
I submit an amendment to House bil
7885. and ask that it be printed and Iii
on the table.
In support of my amendment, I quote
from John Gunther. who in his Brea
book. "Inside Europe Today," wrote:
It is dangerous for a democracy, like th.r
United States, to become too closely tnvoivet.
with a dictator or a semidlctator, no matte'
how convenient this may seem to be. It I I
the people who count in the long run, anti
no regime Is worth supporting if It keeps
citizens down-if only for the simple reason
that they will kick It out to time.
The PRESIDENT pro tempore. Th
amendment (No. 293) will be receives,
, and lie on the table.
3 EDF.RAL EMPLOYEES' SALARY AC`.'
OF 1963-AMENDMENT (AMEND .
MENT NO. 283)
Mr. WILLIAMS of Delaware (for him-
self, Mr. LAUSCnz, Mr. DOMI ICK, M.
TOWER. Mr. COTTON, and Mr. THux-
MOND) submitted an amendment, in-
tended to be proposed by them, jolntl:',
to the bill 'H.R. 8986) to adjust the rates
of basic compensation of certain officei s
and employees in the Federal Govcrr. -
ment, which was referred to the Corr.-
mittee on Post Office and Civil Service",
and ordered to be printed.
ADDITIONAL COSPONSOR OF S. 224 9
TO CREATE THE INDIANA DUNE 3
NATIONAL LAKESHORE
Mr. DOUGLAS. Mr. President, I a:.k
unanimous consent that the name of ti- e
senior Senator from West Virginia CM,,.
RANDOLPH] be listed as a cosponsor it
S. 2249, the bill to establish the Indtara
Dunes National Lakeshore, and that h s
name be added to the bill at the ne: t
printing.
The PRESIDENT pro tempore. With-
out objection, It is so ordered.
NATIONAL ECONOMIC CONVERSION
ACT'-ADDITIONAL COSPONSOR
OF BILL
Mr. HUMPHREY. Mr. President, I
ask unanimous consent that, at the next
printing of the bill (S. 2274) to estab-
lish a National Economic Conversion
Commission, and for other purposes, in.y
name be added as a cosponsor.
The PRESIDENT pro tempore. With-
out objection, it is so ordered.
ADDITIONAL COSPONSORS OF BILL
AND CONCURRENT RESOLUTION
Under authority of the orders of the
Senate of October 24, 1963, the following
names have been added as additional
cosponsors for the following bill and
concurrent resolution:
S. 2259. A bill to further amend section
24 of the Federal Reserve Act, as amended
(12 U.S.C. 371). to liberalize the conditi?mns
of loans by national banks on forest tracts:
Mr. AIwEN and Mr. MCCARTHY.
S. Con. Res. 65. Concurrent resolution
favoring agreements with other nations for
the joint exploration and use of space and
to place a man on the moon: Mr. BARTL
Mr. McGEE, and Mr. RANDOLPH.
NOTICE OF HEARING ON NOMINA-
TION OF CHARLES H. TENNEY, TO
BE U.S. DISTRICT JUDGE, SOU'I'H-
ERN DISTRICT OF NEW YORK
Mr. JOHNSTON. Mr. President, on
behalf of the Committee on the Judici-
ary, I desire to give notice that a public
hearing has been scheduled for Friday,
November 8, 1963, at 10:30 a.m., in room
2228, New Senate Office Building, on the
nomination of Charles H. Tenney, of
New York, to be U.S. district judge,
southern district of New York, vice Alex-
ander Bicks, deceased.
At the indicated time and place, per-
sons interested in the hearing may make
such representations as may be per-
tinent.
The subcommittee consists of the Sen-
ator from Mississippi [Mr. EASTLAND],
chairman, the Senator from South Caro-
lina [Mr. JOHNSTON], and the Senator
from New York [Mr. KEATING).
ADDRESSES, EDITORIALS, ARTI-
CLES, ETC., PRINTED IN THE
APPENDIX
On request, and by unanimous con-
sent, addresses, editorials, articles, etc.,
were ordered to be printed in the Ap-
pendix, as follows:
By Mr. RANDOLPH:
Address by Dr. Shane MacCarthy in ac-
cepting the Cosmopolitan Club's Distin-
guished Service Medal Award, October 22,
1983, in Washington, D.C.
Editorial, "B. & O. Deserves Our Applause,"
In the Thursday, October 31, 1983, issue of
the Morgantown (W. Va.) Dominion-News;
correspondence between Senator RANDOLPH
and Mr. Jervis Langdon, Jr., president of the
Baltimore & Ohio Railroad.
By Mr. BYRD of Virginia:
Statement delivered before the Senate
Committee on Finance by Steve Stahl, on
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CONGRESSIONAL RECORD - APPENDIX November 6
argument against the comparisons being
cited as justification for the salary increases
proposed.
The Vast: Amount of Money Gambled
Every Year in the 24 States That Have
Parimutuel Betting
EXTENSION OF REMARKS
OF
HON. PAUL A. FINO
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Wednesday, November 6, 1963
Mr. FINO. Mr. Speaker, for the past
several months, I have brought to the
attention of the Members of this Con-
gress the vast amounts of money gam-
bled, legally and illegally, every year in
each of the 24 States that have pari-
mutuel betting.
I have discussed in a series of 24 state-
ments inserted in the CONGRESSIONAL
RECORD, the panorama of gambling and
crime in these States and how we have,
because of our stubborn refusal to open
our eyes to the bold print of common-
sense, turned this Nation into a gam-
blers' paradise.
We have, Mr. Speaker, thanks to the
hypocrites and the bluenose moralists,
helped the underworld crime syndicates
to fatten themselves from untapped
gambling revenues and allowed them to
expand their illicit activities into a na-
tionwide web of dirt. We have permitted
gambling in the United States to grow
into a gigantic tax-free $100 billion a
year monopoly which has supported and
will continue to support, unchained and
uncontrolled, every filthy ramification of
underworld activity.
We have, by permitting this tax-free
business to fall into the hands of the
crime syndicates, heavily subsidized the
forces of organized crime which, in turn,
has corrupted the processes of law en-
forcement and government.
We have paid and will continue to pay
a steep price for the foolishness and
blindness of those who refuse to recog-
nize and control the natural human urge
to gamble. We have made America the
playground of crime syndicate opera-
tions.
Mr. Speaker, it is very difficult for .our
hard-pressed taxpayers to understand
our Government's sanctimonious atti-
tude about gambling when we know that
gambling is a $100 billion.a year indus-
try which is the chief source of revenue
to the underworld. Our entire ostrich-
like attitude is beyond human compre-
hension.
Only a Government-run lottery can
legally satisfy the American thirst to
gamble-only a Government-operated
lottery can shut off this tremendous flow
of billions of dollars to the underworld
mob-only Government regulation and
control of gambling through a national
lottery can cut into these billions of dol-
lars now siphoned off by the crime
syndicates.
The time has come, Mr. Speaker, to ex-
change our rose-colored glasses of wish-
ful thinking for the more accurate lenses
of financial and social reality. Just as
repeal of prohibition brought an end
to the bootleg era and tremendous new
revenues to our Treasury, so would the
end of hypocrisy in our treatment of
gambling strike a lethal blow at organ-
ized gambling and pump a substantial
part of these moneys into our Govern-
ment coffers.
In 1962 24 States, listed below, enjoyed
a total parimutuel turnover of $3.7 bil-
lion which brought into State treasuries
legally, over $288 million. According to
the testimony before the McClellan com-
mittee, 161/2 times as much money is
wagered off the racetracks on horses as
is bet on the tracks. The total national
offtrack betting turnover allocated to
these 24 States is estimated at over $281/2
billion. This, according to the McClellan
hearings, represents only 42 percent of
the total illegal gambling in these States.
It can be estimated therefore, that the
total illegal gambling in all 24 States ap-
proaches about $60 billion. Out of these
funds, almost $6 billion-10 percent of
the total turnover-goes right into the
filthy pockets of the gambling crime syn-
dicates.
How much longer are we going to con-
tinue to subsidize the forces of organized
crime? How much longer are we going
to keep the crime syndicates fat and
happy? How much longer are we going
to continue to make America the gam-
blers' paradise? What are we waiting
for?
State
Parimutuel
turnover, 1962
Esthnate
off-track
betting
in 1962
Illegal
gambling
estimate
10 percent
profit to
crimp
syndicate
State
Pa ver, 1el962
turnover, 1
Estimate
off- betting track
in 1962
Illegal
estim ate gambling
10 percent
to
criprofitme
syndicate
Millions
0
3
Millions
$750
Millions
$75
a________
N
14
---------
$41,626,636
Millions
. $390
Millions
$800
Millions
$80
1. Arizona --------------------
Arkansas
2
$21,454,342
112,950
24
6
$
495
1,000
100
ow Il
.
16. Now IIampshirc---------- _
81,659,976
105
214
324
170
680
1
350
3
500
35
350
__________________
.
3. California__________________
,
522,046,261
4,360
0,000
900
100
16. New Jersey________________
New Mexico
17
-
--
,
,
36,693,249
,
290
,
600
60
4. Colorado___________________
D
l
16,013,019
216
666
97
490
125
1,000
250
25
.
-----------
-
18. NowYork -----------------
1,127,023,764
2
4,650
695
2
10,000
000
5
1,000
500
aware_______________
r,.
e
6. Florida--------------------
,
,
157,796,388
1,375
3,000
300
560
10. Ohio________.___._____.._--
20
Ore
on
. 138,340,64
370
11
360
,
495
,
1,000
100
7. Illinois_____________________
_
342,620,765
920
587
57
2,795
845
6,600
2,000
200
.
g
--------------------
21. Rhode Island --------------
,
,
95,026,350
235
300
350
50
35
. Kentucky ___ _ ____________
8
9. Kentuana__________________
,
,
45,672,223
005
2,000
200
60
22. South Dakota -------------
23
Washington
4,409,922
27,088,602
175
790
1,500
150
10. Maine---------------------
l
d
M
15,332,728
147
160
674
295
860
600
2,000
200
---------------
.
24. West Virginia______________
90,689,481
520
1,100
7.1.0
_________________
an
11.
ary
12. Massachusetts_____________
,
,
109,499,421
3
1,425
2
190
3,000
000
6
300
690
Total____________________
3,669,463,825
28,625
59,900
5,990
13. Michigan__________________
120,721,67
,
,
U.N.: Soviet Spy Center
EXTENSION OF REMARKS
OF
HON. H. R. GROSS
OF IOWA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, November 6, 1963
Mr. GROSS. Mr. Speaker, the recent
apprehension by the FBI of two members
of the Soviet delegation to the United
Nations as participants in a spy plot of-
fers further evidence that Russia uses
the U.N. headquarters in New York pri-
marily as a center for espionage.
In this regard, I desire to include an
excellent editorial appearing in the No-
vember 1, 1963, issue of the Waterloo
(Iowa) Daily Courier:
A new high in arrogance was reached this
week when two Soviet diplomats, attached to
the Soviet delegation to the United Nations,
were apprehended by the FBI for participa-
tion in a spy plot.
"The conduct of the FBI- agents was very
rude," Yuri A. Romashin, third secretary of
the Soviet U.N. mission, declared.
This, we assure you, does not bring tears
of shame to our eyes. Imagine. The FBI
agents were rude. They were so crude as to
believe that an official who enjoys diplomatic
immunity should not abuse the privilege.
Hardly less insolent was the remark of John
William Butenko, the naturalized American
engineer who is accused of turning over de-
fense secrets to the Russians. He complained
about the photographers who appeared at the
arraignment before the U.S. Commissioner.
"If they keep on taking pictures they're going
to ruin my life," he declared. We doubt if
the photographers were overcome by remorse.
Extensive evidence that most if not all
Soviet personnel with diplomatic immunity
at the U.N. are engaging in espionage raises
questions about the hazards of having the
United Nations located in this country. For
the presence of U.N. headquarters in New
York means that the Soviet Union has a rea-
son for keeping far more diplomats in this
country than could otherwise be justified.
The United Nations is useless unless the
participating governments use it as a means
of resolving differences. The Russians are
using it largely as a spy center.
Groggy Lumbermen Face New Cost Hike
EXTENSION OF REMARKS
OF
HON. JACK WESTLAND
OF WASHINGTON
IN THE HOUSE OF REPRESENTATIVES
Wednesday, November 6, 1963
Mr. WESTLAND. Mr. Speaker, the
unemployment rate in my State of
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 gress approve a strong civil rights Drummond. taken from the Washington
program. Post of Monday. November 4, which I
I take this opportunity to insert the think will be of considerable interest to
resolution in the CONGRESSIONAL RECORD. my colleagues in the House:
The board of trustees of the Unitar- FArrnsLL TO PARTY: HALLECK DIDN'T SELL
ian Universalist Association, recognizing Our ON RrcHTs
the seriousness of the deep racial crisis (By Roscoe Drummond)
which has gripped the United States in The ;tory Is going the rounds that on the
recent months and weeks, and reaffirm- sunny morning after he had done so much
ing the traditional concern of Unitarians to rescue the civil rights bill and assure it
and Universalists for the supreme worth Republican support, House minority leader
of every human personality, the dignity CIARLFC HALI.ECK found an odd gift perched
of man, and the use of the democratic ominously atop his desk: A big black um-
method hi human relationships, respect- brella a Is Neville Chamberlain.
apocryphal,
fully urges that the Congress of the the Meaning the Is the same-that eeisretlsomeone is
Is
United States enact meaningful, com- accusing HAU.KCK of selling out to the Demo-
prehensive civil rights legislation to re- crats, of throwing away an opportunity to
dress the legitimate grievances of the haraw the Kennedy administration bystymy-
Negroes and members of other minority Ing civil rights.
groups. The implication of this Munich-esque
To this end, we endorse the substance charge is that HALLECK in giving his backing
and intent of H.R. 7152 and S. 1751 to to the bipartisan civil rights bill is deserting
Republican Party policy,
strengthen voting rights, make discriml- Such a charge is inaccurate, untrue, and
nation in public accommodations unlaw- unfair. HALI.rc.K Is Implementing Repub-
ful, speed public school desegregation lican policy. His politics-at-an - rice R
e
A6901
EXTENSION OF REMARKS
OF
HON. H. R. GROSS
OF IOWA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, November 6, 1963
Mr. GROSS. Mr. Speaker, the fact
that the pay of high-ranking Govern-
ment officials does not match the salaries
of many corporation executives has be?n
cited as justification for enactment of
pending legislation to provide lush pay
increases for the top brass of the execu-
tive and judicial branches of Gover:.3-
ment and Members of Congress.
The absurdity of this argument is iI-
Iustrated in an editorial in the November
1. 1963 issue of the Waterloo (Iowa)
Daily Courier. I commend the editorial
to the attention of my colleagues:
I p
GOVERNMENT NEVER WILL MATCH PRIVATE
establish a Community Relations Serv- publican critics are not.
ice to mediate racial disputes, extend the The Republican record in Congress, the SALARIES
Re ublican commitments in its 1960 na- A pay raise bonanza for all Federal execu-
life of the U.S. Commission on Civil Clonal platform and the majority views of five of iclals and Members of Congress has
Rights for 4 years and give it added the Republican Members of the House of been voted out of the House committee.
responsibilities, authorize Withholding of Representatives all prove that HALLzcK, far This bill would increase the pay of Sn-
Federal funds from programs that are from shoving civil rights down the throat preme Court justices from $35,000 to $45,000.
administered in discriminatory fashion: of his party, is to fact acting faithfully In It would raise the pay of the Vice Presi-
and establish as a permanent Commis- behalf of established party policy. Here is dent and the Speaker of the House from
sion the President's Committee on Equal the record: $35,000 to $45,000.
Employment Opportunity. On the passage of the first civil rights bill Pay of cabinet officers would be increased
In 80 years-in 1957-House Republicans from $25.000 to $35,000.
We urge especially that the Congress voted 151 for, only 15 against. (The Demo- Members of Congress would receive $32,000
erase the humiliation which accompan- cratic vote was 128 for. 82 against.) On the In place of the present $22,500.
ies the members of minority groups same bill Senate Republicans voted 37 for, It can be demonstrated, of course, that the
when they are refused accommodations none against. (Senate Democrats voted 23 pay of top governmental executives does not
or service in hotels, motels, restaurants, for. 15 against.) match that paid to corporation executives.
business establishments or places of The next civil rights bill was in 1959. This Some school superintendents and colIer:e
amusement. and that a public accommo- time House Republicans voted 80 for, 8 presidents are paid more than cabinet of-
against (House Democrats voted 141 for, ficials with much greater responsibilities.
dations law cover all establishments, of 73 against.) On the same bill, Senate Re- Some union international presidents are
whatever size. publicans voted 28 for, I against. (Senate paid more than Members of Congress.
In addition, we urge that amendments Democrats voted 43 for. 17 against.) But there Is another side of the story,
be made to the bill to add a permanent HAW.ECK is acting in accord with this Justices of the Supreme Court are appointed
Fair Employment Practices Commission party record. for life and earn a guaranteed salary until
to cover hiring, firing, and promotion in The 1960 Republican national platform retirement age without penalty for declining
all types of employment and member- committed the party as follows: "We pledge mental or physical capability. The record
ship in labor organizations engaged - the full use of the power, resources, and lead- does not show that any outstanding jurists
crship of the Federal Government to eliml- have turned down a Supreme Court appoint-
interstate commerce. And, further, that hate discrimination based on race, color, ment because the salary was inadequate.
the bill be amended to give the U.S. At- religion. or national origin." Likewise, the Government has been able
torney General power to bring civil suits HALLEi:x is helping his party to carry out to obtain the services of many top execu-
in all cases where Americans are denied this pledge. tives from business without offering them a
their constitutional rights because of Early in this session of Congress-In Janu- comparable salary. The Secretaries of De-
race or religion. ary, well ahead of any action by the White fense under both the Eisenhower and Ken-
The civil rights 11ouses--12 House Republicans took the Inf- nedy administrations were formerly top ex-
program before the tiative to jointly introduce a wide-ranging ecutives in the automobile industry.
Congress represents minimal objectives civil rights bill. In June, still ahead of the It would be wrong to remunerate these
at this critical point in our Nation's his- White House. 31 House Republicans added a men Inadequately simply because they are
tory. One hundred years after the further civil rights measure. willing to accept a Government job as a
Emancipation Proclamation, the Ameri- Last week Representative WILLIAM M. public service. But it is unlikely that the
can Negro finds that in education, in McCVLLOCH, of Ohio, ranking Republican 3overnment would ever pay a salary com-
employment, in housing. In the exercise member of the House Judiciary Committee, mensurate with what they could earn lit
of his rights of citlzenShip, he is still a and GOP Representative JOHN LINDSAY, of private business. Even with the big sal-
New York, salvaged civil rights from hope- try increase proposed, such men could be
second-class citizen. The Congress less deadlock by negotiating the terms of recruited only because of their desire to
should therefore act this year to bring a strong bill capable of winning decisive serve the public and because of the prestige
to fulfillment the promise of the Eman- bipartisan support. nvolved.
cipation Proclamation. It was this bill to which HALLECK gave his There Is no objective yardstick of what a.
Halleck Didn't Sell Out on Rights
indispensable support. From the whole rec- Dan is worth. The only basis for deter-
ord it is obvious that he is not acting to :nining salaries is what must be paid to get
impose a civil rights position on a reluctant ' ompetent men and women. If we are to
party but Is responding to Republican Initia- udge the fairness of Government salaries
Clue. in relati
t
I
on
o
ncome in the private sector of
EXTENSION OF REMARKS The Republican actions cited above not he economy, then the President of the
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1 .1
HON. WILLIAM L. SPRINGER
OF ILLINOIS
only solidified the Republican Party at this United States should be paid as much as
session, but helped to encourage and stimu- : 'aul Getty or other multimilllonalres.
late the White House to pursue a more active This indicates the absurdity of basing Gov-
course than was visible before the antidis- t rnment salaries on such a comparison. If
culmination demonstrations. Since then I ay is the only way to get competent men in
Mr. Kennedy has boldly galvanized his own (lovernment service then the Govern
men
Wednesday, November 6, 1963 party In Congress, i i always going to be out-bid by monetary
The result: A bipartisan agreement which c pportunities outside Government. This is
Mr. SPRINGER. Mr. Speaker, I puts the welfare of the Nation ahead of party r of necessarily an argument against Govern-
attach herewith an article by Roscoe maneuver. rient salary increases but it Is an effective
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 1963
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CONGRESSIONAL RECORD- SENATE 20501
knows, already 'is bearing a heavy
enough burden.
An essential factor the committee has
failed to recognize is that the purpose of
Government is service whereas the pur-
pose of industry is profit. If the goal is
to try to match the pay scale of private
industry, then we must accept the fact
that this proposed bill is only the first
installment, and that future requests will
indeed make this present legislation look
miserly.
We should realize that the Federal
Government can never match the sal-
aries of private industry. We shall al-
ways have to rely to a marked degree on
many citizens to serve their Govern-
ment as their lives' work. That is as it
should be.
It is fair to say that citizens generally
wish public officials to be paid ade-
quately. It would be foreign to our
American way of life were Congressmen,
for example, to be denied adequate com-
pensation. It would be unfortunate
were only men and women born to great
wealth, or who had acquired great,
wealth, able to afford to occupy public
office, elective, or appointive. No one
wants that. On the other hand in my
judgment the House Post Office and Civil
Service Committee has reportedly come
forth with overly generous and, in fact,
outrageously high salary recommenda-
tions.
Mr. President, because of my opposi-
tion to a salary raid on the Public Treas-
ury at this time, I have received criticism
from some on the Federal payroll. It
startled me somewhat that one of them,
Representative WAYNE HAYS, of Ohio, ac-
cording to newspaper reports, stated that
both Ohio's Senators were not worth the
increased salary proposed for Members
of the Congress. . Mr. President, I ask
unanimous consent that pertinent ex-
cerpts from an article entitled "HAYS
Says Ohio. Senators Are Not Worth Pay
Increase," which appeared in the Cleve-
land Press on October 31, 1963, be print-
ed in the RECORD at this point as part of
my remarks.
There being no objection, the excerpt
of the article was ordered to be printed
in the RECORD, as follows:.
HAYS SAYS OHIO SENATORS ARE NOT WORTH
PAY INCREASE
(By Thomas Talburt)
WASHINGTON.-Congressman WAYNE HAYS,
Democrat, of Ohio, says he understands why
both of Ohio's Democrat Senators oppose a
congressional pay raise. He says they're not
worth it.
HAYS, who's backing a proposed pay boost,
said he'll offer an amendment to pay legisla-
tors on a sliding scale from $5,000 to $35,000
a year and let each Member decide for him-
self how much he is worth.
"If my amendment passes and either Ohio
Senator says he's worth more than $5,000, he
could be tried for perjury," snapped HAYS.
After placing rather dubious prices on the
heads of Senators FRANK LAUSCHE and STE-
PHEN YOUNG, HAYS was asked to evaluate his
own performance.
"I'm worth the maximum," he declared.
"I'm sick of demagogs," HAYS added.
"There are plenty of people in Congress who
will vote against the bill and then be the
first in line to get their checks.
Senator YOUNG laughed when told of HAYS'
comments, but offered no reply. LAUSCHE
could not be reached.
The pay bill approved by the House Civil
Service Committee yesterday provides a $10,-
000-a-year raise for Senators and Congress-
men, from $22,500 to $32,500. HAYS is hold-
ing out for $35,000.
This article by Tom Talburt, Wash-
ington correspondent for the Scripps-
Howard newspapers, contains the follow-
ing specific statements made by Repre-
sentative HAYS:
Congressman WAYNE HAYS, Democrat, of
Ohio, says he understands why both of Ohio's
Democratic Senators oppose a congressional
pay raise. He says they're not worth it.
HAYS, who's backing a proposed pay boost,
said he'll offer an amendment to pay legisla-
tors on a sliding scale from $5,000 to $35,000
a year and let each Member decide for him-
self how much he is worth.
"If my amendment passes and either Ohio
Senator says he's worth more than $5,000, he
could be tried for perjury," snapped HAYS.
After placing rather dubious prices on the
heads of Senators FRANK LAUSCHE and
STEPHEN YOUNG, HAYS was asked to evaluate
his own performance.
"I'm worth the maximum," he declared.
My first acquaintance with the gentle-
man from the 18th Ohio District was in
January 1949, when he came to Wash-
ington as a first term Representative.
At that time, I was serving my fourth
term as a Member of the House of Repre-
sentatives and had been elected to mem-
bership of the Committee on Ways and
Means which is the committee on com-
mittees of that body. As a member of
that powerful committee, I was assigned
the duty of recommending committee as-
signments for freshman Congressmen
from Ohio, West Virginia, Indiana, and
Michigan and for Congressmen from
those States who desired to make a
change of their committee assignments.
Of course, I talked with the Democratic
leaders of those four State delegations in
my endeavor to help my Democratic col-
leagues secure committee assignments to
their liking.
Representative HAYS asked me to try
to. have him placed on the Committee on
Foreign Affairs, then as now, a blue-
ribbon committee of the other body, I
spent time and effort in conferences, and
recommended my new colleague. He
was later selected for membership on the
Committee on Foreign Affairs.
I did my best for "him in 1949. It is
true that I have not done anything for
Representative HAYS lately. He .has
been a very fine and effective Represent-
ative, representing Ohio and the Nation.
I understand that his work on the House
Committee on Foreign Affairs is out-
standing, and that his frequent travels
overseas have broadened his knowledge
of foreign affairs and have won for him
the agnomen, "Ohio's Marco Polo." His
most recent trip to London and Paris has
been well publicized. Ten Members of
the other body made this trip to the In-
terparliamentary Conference in Paris.
Meanwhile the other body continues in
session, but has not acted upon the im-
portant administration medicare bill, to
call attention to one omission on the part
of that body. Unfortunately, because of
tax features of this legislation the Senate
cannot pass needed hospital and nursing
home insurance without social security,
commonly termed "medicare," until it is
first passed in the House of Representa-'
tives.
My Ohio colleague is quoted as having
said, "If either Ohio Senator says he is
worth more than $5,000, he could be tried
for perjury." I will give that statement
the charity of my silence. Furthermore,
to the evaluation: of his own perform-
ances and his statement that he is worth
the maximum I shall not disagree.
Without a doubt he is an expensive and
valuable Member of Congress.
Mr. President, I am not opposed to a
reasonable pay increase for some Gov-
ernment officials and employees when it
can. be shown they are deserving of it.
Furthermore, althought I am opposed to
the bill as introduced, I do believe that if
it is reasonably amended, it is entitled to
consideration.
Furthermore, if salary increases are
given to appointive bureaucrats and
Federal judges, then the Members of the
Congress should receive.equal considera-
tion. It is certain that Senators and
Representatives can have a much better
case made for them for a pay-increase
than can possibly be made for most ap-
pointive officials. There is certainly
more justification for a pay increase to
Members of Congress than for U.S.
judges and all appointive officials except
certain Cabinet members.
It appears to me that some provisions
in the pay raise bill are really somewhat
frightening. Do we want Washington
bureaucrats to become America's new
economic royalty? I hope that members
of the Senate Post Office and Civil Serv-
ice Committee and all Senators will look
long and hard at this legislative proposal
should it come to us from the House of
Representatives. We should not enter
into a race to have public service compete
with private industry to determine which
is more generous in payment of king-
size salaries. We should not make the
Public Treasury the private domain of
public servants.
Mr. MORSE. Mr. President, will the
Senator yield?
Mr. YOUNG of Ohio. I. am glad to
yield.
Mr. MORSE. I should like to bear wit-
ness and give testimony to the fact that,
in my judgment, the Senator from Ohio
[Mr. Yourro1 is worth to the people of
Ohio many times his salary, and I hope
the people of Ohio will see to it that
he continues to serve in the Senate for
many more years to come.
Mr. YOUNG of Ohio. I thank the dis-
tinguished senior Senator from Oregon
[Mr. MORSE]. I shall take my seat feel-
ing very humble over the commendatory
statement he has just made regarding
me.
AMENDMENT OF FOREIGN ASSIST-
ANCE ACT OF 1961
The Senate resumed the consideration
of the bill (H.R. 7885) to amend further
the Foreign Assistance Act of 1961, as
amended, and for other purposes.
Mr. MORSE. Mr. President, I should
like to have the attention of the chair-
man of the Foreign Relations Committee.
As I said at the beginning of my speech
on the pending amendment, No. 306, I
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CONGRESSIONAL RECORD - SEN ATE Norenzber 1'
hope that any modifications that will
make it helpful and stronger, without
sacrificing the main objective I have in
mind can be agreed upon.
The first Senator to speak to me about
that was the Senator from Vermont
[ Mr. PROUTY 1. He said it had been rep-
resented to him that my amendment
would prevent sales. I said I did not be-
lieve it would, but if there were any
question about it, it would have to be
modified in order to remove any doubts.
So, on the basis of that conversation.
after I consulted with other Senators, I
propose a modification of the amend-
ment, as follows:
(i) No funds shall be made available under
this Act on or after the date of enactment
of this subsection (except for military sales
under section 503) to any economically de-
veloped nation, except to fulfill firm com-
mitments made prior to July 1, 1983. The
President is directed to make no further
commitments for assistance (except for mili-
tary sales under section 503) to such eco-
nomically developed nations-
Then I drop out of the amendment
the language on line 5, page 1, starting
with the word "and"-
and is directed to terminate such commit-
ments made prior to July 1, 1983, at the ear-
liest practicable time. The President is fur-
ther directed to report, not later than July
1. 1985. to the Speaker of the House and
to the Senate Foreign Relations Committee
on the steps which he has taken to comply
with this provision.
This I agreed to do because the
amendment, in this form, will accom-
plish the main objective. The main dif-
ference between my amendment and the
language of the bill as it came from the
committee is that my amendment seeks
to prevent longtime loans to countries
which really do not need loans, countries
which are self-sufficient. We should be
making loans to countries that need
loans. As the chairman knows, there Is
concern as to whether the amendment
would interfere with the short-term
credit loans for sales. Some countries
wish to buy equipment, and AID makes
them a short-term credit loan. That
helps in regard to the balance-of-pay-
ments problem, and that is why I re-
drafted the amendment. But as to the
other loans, as the chairman pointed out
to me in a conference with him, they are
not making such loans now. They have
in the past. Of course, they could in
the future. I just cannot believe-and
that is why I make the legislative his-
tory-that they would return to making
the other type of loan in view of the lan-
guage in the bill as reported by the
committee and the debate we have had
on the subject matter.
The chairman of the committee ought
to know we have been trying to work out
an amendment that would be acceptable.
Mr. CHURCH. Mr. President, will the
Senator yield?
Mr. MORSE. I yield.
Mr. CHURCH. First, let me say that
we do. indeed. share a common objec-
tive. I think it is shared by the distin-
guished chairman of the committee as
well. That objective is to put an end to
the AID program to rich and fully self-
sufficient countries. To that end. the
committee adopted an amendment I of-
fered- -for I have long been interested in
elimin,:tting this defect In the foreign aid
program-which appears on page 47 of
the committee print, beginning on line 15,
and reads as follows:
No 3--sistance shall be furnished on a grant
basis u Eder this Act to any economically de-
velopod nation capable of sustaining its own
defense burden and economic growth except
(1) to fulfill firm commitments made prior
to July 1. 1963, or (2) additional orientation
and training expenses under part If hereof
during fiscal year 1964 In an amount not to
exceed 41,000,000.
The two exceptions seemed highly de-
sirable the first, because we must honor
our prior commitments, since the United
States keeps Its word: and the second, be-
cause we deemed it wise to permit a
year's time within which to transfer the
orientation and training courses from the
foreign aid program into the military
budget, where they properly belong.
This language allows for transition pe-
riod during which the change in budget-
ing procedures can be accomplished.
I think It Is very Important that the
Senator from Oregon Is making legisla-
tive history on the question of long-term
economic loans. I understand it to be
the Polley of this administration not to
extend such long-term loans to rich
countries. However, I think it should be
made perfectly clear that it is intent of
Congress also that no further long-term
loans should be made to countries fully
capable of furnishing their own capital.
So I commend the Senator from Ore-
gon for the legislative history he Is mak-
Ing. But we should be careful to make
certain that short-term credits are not
foreclosed. because today we are export-
ing abroad. for cash or short-term credit,
a billion dollars worth of military equip-
ment and supplies, which Is very Im-
portant to our adverse balance-of-pay-
ments problem. We do not want to cut
off the very countries which are the prin-
cipal purchasers of American military
equipment and supplies.
I think we can accomplish our common
objective-and I have consulted the Sen-
ator from Oregon, who has been most
cooperative In trying to arrive at satis-
factory formula-by holding to the lan-
guage which I offered, and which the
committee adopted, but borrowing from
the amendment, as modified, that is now
pending?, offered by the senior Senator
from Oregon, that language which de-
fines an economically developed nation,
making one change.
The suggestion I make is that begin-
ning on page 47, following the figure
"$1,000.000" on line 21, we add the fol-
Iowingc paragraph:
As used in this subsection, the term "eco-
nomically developed nation" shall include,
but need not be confined, to any nation list-
ed as an exception to the definition of "eco-
nomically less developed nation" contained
in United Nations General Assembly Resolu-
tion 1875 (3. IV) and, In addition, the Ger-
man Federal Republic and Switzerland.
For the information of the Senate, I
may say that the nations listed in the
cited United Nations General Assembly
resolution Include all of the clearly self-
sufficient, recovered, prosperous nations
that both the Senator from Oregon and
the Senator from Idaho wish to strike
from our foreign aid list.
I think, with the legislative history
that the Senator from Oregon has so
ably made, this addition, by more clear-
ly defining the countries we have in
mind, but leaving it open for the addi-
tion of other countries that may become
self-sufficient in the future, will accom-
plish our objective, and improves the
language the committee has adopted
with this objective in mind.
I would suggest to the Senator from
Oregon that he join me in offering this
language as a substitute for the amend-
ment now pending. I am hopeful that
the distinguished chairman of the com-
mittee will accept this addendum to the
language which the committee prevlou,>-
ly approved.
Mr. MORSE. I will join the Senator
from Idaho in offering the amendment
as a substitute for my amendment. It
accomplishes our main objective. The
legislative history makes clear to the
administration our attitude. We hope
there will not be a reopening of long-
term economic loans which are no longer
being made. Also, it will serve notice
on the administration that Congress
hopes something can be done with regard
to some of the commitments already
made, although we have to keep those
commitments if we cannot reach an un-
derstanding in those instances where
understandings are due. Many of these
countries, for example, are not keeping
their United Nations commitments.
Furthermore, as the chairman of the
committee knows, in committee many
of us have expressed from time to time
our views about having to put money
into infrastructure in Europe; but we
are committed to it. I do not know how
we can reach that problem. We should
not be paying for infrastructure in
France or any other self-sustaining
nation.
Perhaps this history will be helpful to
the administration in connection with
some of its diplomatic economic rela-
tions with those countries.
Therefore, I shall be glad to join the
Senator in offering the proposal as a
substitute for my amendment, if the
chairman is willing to take it to con-
ference.
Mr. FULBRIGHT. Mr. President, I
am quite willing to take it to conference.
I think it is a very good substitute. I
am sure It will be agreeable to the other
members of the committee. I am glad
to accept the substitute.
Mr. CHURCH. I thank the Senator.
Mr. President, on my own behalf and
that of the Senator from Oregon, I send
to the desk a substitute amendment, and
ask that it be read.
The PRESIDING OFFICER. Does the
Senator from Oregon withdraw his
amendment?
Mr. MORSE. Mr. President, if I may,
I am going to send to the desk my amend-
ment, as modified, that I discussed. It
ought to be in the RECORD, and I ask
unanimous consent that it be printed
in the RECORD at this point.
There being no objection, the amend-
ment was ordered to be printed in the
RECORD, as follows:
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CONGRESSIONAL RECORD - SENATE
is another instance of most-favored-na-
tion treatment; and to me, for some in-
explicable reason, the "most favored na-
tion" is to be one in the Communist bloc,
instead of one of our allies or our friends.
It is proposed that our Government
guarantee the full payment of the loans.
What a strange departure from the orig-
inal White House statement, which was
that we were to be paid in gold or in
cash or in short-term credits. But Un-
cle Sam, not the private lending insti-
tutions, is to take the risk of these sales.
The private lenders, however, instead of
Uncle Sam, will make the profit on
them.
If there is a default on any creidt ex-
tended for the sale of this wheat, it will
be the American taxpayer, or good old
"Uncle Sucker," who will take the loss,
not the private banking institutions,
since they will be protected by the ad-
ministration's decision from any loss of
dollars. My amendment would prohibit
this kind of financial shenanigan. It
would prohibit the Export-Import Bank
or any other agency of Goyernment from
guaranteeing repayment of these cred-
its extended by private American bank-
ing institutions to Communist countries.
It would insure that the wheat and other
grain sales are strictly consummated
through private channels, as the Pres-
ident said they would be; and without
Government support, as the President
said would happen; and that the grain
trade and private credit institutions
would be undertaking and entering into
such sales contracts at their own risk
and for their own profit, not at the risk
of the unsuspecting American taxpayers.
The American taxpayer should not be
asked or required to pick up the very
substantial risk in these sales which
many private grain traders now want
to exploit. My amendment would pro-
tect the overburdened taxpayers of
America and would place American fi-
nancial institutions who provide the
credit in this instance on notice that
these grain sales will be conducted on
the same basis as sales negotiated in this
country. Private credit will take the
risks, make the profits, and stand the
losses-if losses occur for any reason
whatsoever. My President, I hope that
when my amendment is offered, it will be
adopted, so that sales of grain to the
Communist bloc will not be at the ex-
pense of the U.S. taxpayers in case the
Communists default on their payments
and violate still another one of their
promises.
Mr. President, if we are to continue to
spend billions of dollars to strengthen
the capacity of the free world to defend
itself against Communist subversion and
aggression, the least we can do as Sena-
tors and as guardians of the interests
of the American people is to make sure
that our fellow taxpayers are not also
charged with the expense of providing
supplies to the Communist countries
whose persistent attacks against free
world security make these AID appro-
priations or some other type of foreign
assistance program necessary. My
amendment would do precisely that-no
more and no less. It would protect the
American taxpayers against the very
probable contingency that he will have
to pay through the Export-Import Bank
for the credits defaulted by Communist
countries to which our wheat and grain
are being sold.
In my opinion, the whole concept of
strengthening our enemies by selling
them the supplies they need on credit
terms which will safeguard their Com-
munist economies, while at the same
time spending billions of dollars
strengthening the capacity of our friends
to resist the encroachments of aggres-
sive, atheistic communism, as we are be-
ing asked to do by means of the present
foreign aid and assistance bill, is a high-
ly questionable and sadly inconsistent
concept. It clearly indicates the need
for the evolvement of a new type of
U.S. foreign policy. Our constituents
have the right to expect more construc-
tive and more consistent action from
their Senators than mere endorsement
of such an inconsistent self-defeating
program as involved in our prevailing
foreign policy.
Surely, the long record of broken prom-
ises by the Communists does nothing
to give them a high-grade credit rating.
Once they have our merchandise, they
can and will default on their payments
with the same contemptuous disdain
that they have demonstrated in their
failure to pay the just debts they owe
to us for previous credits and to pay
the debts which today they owe to the
United Nations and to the other free
sectors of the world. It does not make
good sense-in fact, it makes no sense
at all-to use the funds of the United
States to guarantee the credit and to un-
derwrite the financial "good intentions"
of the Communists. This is even more
startling than appeasement; this is an
endorsement of the checks and the notes
to be utilized by the Communists in pur-
chasing supplies to strengthen their ca-
pacity to attack us. It is a startling
anomaly. If we must sell them food and
merchandise which I very much doubt-
the least we can insist upon is that they
pay cash for what they buy, or that those
seeking a quick profit by selling to the
Communists on long term credit assume
responsibility for their own losses and
for their failure to collect on credits ex-
tended to those who so often have demon-
strated their bad faith in one program
and one promise after another.
Let those who would make the profit
assume the risk, Mr. President. Let us
not try to compel all the taxpayers of
the United States to underwrite the bad
faith of the Communists, who seek to
obtain from us the supplies, the food, and
the fabric required in order to strength-
en them in their mad desire to bury the
free world and to destroy Christendom.
I shall have more to say on this sub-
ject when I call up my amendment. At
this time I merely make this preliminary
statement in the hope that Senators will
read and study the amendment and ac-
quaint themselves with the facts, and
in order that the country generally may
know what will be provided by the suc-
cession of appeasing actions favorable
to the Communists unless we take the
opportunity provided by my amendment
to call a halt to a suicidal program of
that kind.
Mr. President, I urge the adoption of
my amendment in order to protect the
American taxpayers against the neces-
sity of being called upon to finance both
sides of the cold war at the same time.
It is bad enough that we are now beyond
the $100 billion mark in helping to fi-
nance the free side of the cold war. But
now, when we are asked to go beyond
the $100 billion mark and to appro-
priate additional billions, we are told
that the American taxpayers not only
are to underwrite and support to that
extent the free world, but also they are
to finance the Communist side of the
cold war by guaranteeing any debt the
Communists incur in purchasing supplies
from the United States. I ask Senators
to consider seriously the ultimate con-
sequence of such a reckless squander-
ing of our country's resources.
Mr. FULBRIGHT. Mr. President,
some of the statements which have been
made are quite inaccurate and are
among the strangest interpretations of
the facts I have ever heard on the floor
of the Senate.
I have had prepared a memorandum
based upon an inquiry made some days
ago of the Export-Import Bank. Last
week I received an inquiry relative to an
article published in the Washington
Post.
Mr. President, I shall read the last
paragraph of the memorandum, in order
to indicate what I mean:
The Export-Import Bank stresses that
there is nothing new in these arrange-
ments-aside from the fact that a short-
term credit risk is being covered with re-
spect to a Soviet bloc country. In fact, the
Bank has been making similar arrangements,
on more liberal terms, with respect to sales
of cotton ever since the Bank was established.
In last July, for example, a $60 million sale
of cotton to Japan was covered by 100-per-
cent political and credit guarantees; no
downpayment was asked and a lower inter-
est rate was involved.
The remainder of the memorandum
deals with the specific conditions of these
sales. I shall not take the time of the
Senate to read the entire memorandum
at this time, inasmuch as the amend-
ment to which it it relevant is not now
pending; but I believe it will be helpful,
for the information of the Senate, to
have the memorandum printed in the
RECORD; and no doubt this question will
be discussed further when the amend-
ment is before the Senate.
I ask unanimous consent that the
memorandum be printed in the RECORD.
There being no objection, the mem-
orandum was ordered to be printed in
the RECORD, as follows:
MEMORANDUM: EXPORT-IMPORT BANK GUARAN-
TEES OF SALES TO BLOC, NOVEMBER 6, 196$
The story in yesterday's Washington Post
concerning the Export-Import Bank's guar-
antee of a sale of corn to Hungary, and the
Bank's readiness to extend similar terms
with respect to other commodity deals with
the Soviet bloc, contains at least two errors.
First, as will be seen from the detailed ac-
count below, the Bank is not covering 100
percent of the financing of the corn deal of
about $6 million with Hungary, Second,
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CONGRESSIONAL RECORD - SENnTE November 12
there is no "usual 50-50 practice" concerning
guarantees. contrary to the newspaper
story.
The Export-Import Bank has announced
terms which would be extended. If accepted.
to any of the deals between American sup-
pliers and Soviet bloc purchasers of com-
modities. These arrangements are as fol-
lows: The Bank is ready to Issue guarantees
through U.S. commercial banks. The
Bank itself will not grant any credits.
It will Issue 100 percent guarantees against
the political risks and full coverage of cer-
tain credit arrangements which are made.
However, these terms depend completely on
the following conditions being met first:
(1) The purchasing country must pay 25
percent of the purchase price in dollars to
the commercial bank representing the sup-
plier prior to shipment of the commodity:
(2) a maximum of 18 months credit for the
balance may be extended by the commercial
bank: and (3) the balance of 75 percent of
the purchase price must be paid In three
equal installments at 8-month intervals dur-
ing those 18 months-an interest charge of 5
percent is levied on this balance. In connec-
tion with the above account. It should be
understood that the buyer has to make con-
tact with the American supplier, who then
turns to a U.S. commercial bank. which
in turn would go to the Export-Import
Bank.
The Export-Import Bank stresses that
there is nothing new In these arrangements-
aside from the fact that a short-term credit
risk is being covered with respect to a Soviet
bloc country. In fact, the Bank has been
making similar arrangements, on more
liberal terms, with respect to sales of cotton
ever since the Bank was established. In last
July, for example, a $60 million sale of cotton
to Japan was covered by 100 percent politi-
cal and credit guarantees; no downpayment
was asked and a lower Interest rate was in-
volved.
PHQPOSED PAY INCREASE UNREAL-
ISTIC
I Ar. YOUNG of Ohio. Mr. President,
within a short time the Post Office and
Civil Service Committee of the House of
Representatives will issue a report
recommending salary increases for all
three branches of the Federal Govern-
ment-the executive, the judiciary, and
the legislative.
Last June 13 I spoke out in this Cham-
ber and cautioned against the king-size
salary increases recommended by the
President's Advisory Committee. Un-
fortunately, it appears that the bill soon
to be voted on in the House of Repre-
sentatives for the most part embodies
these unrealistic recommendations.
This legislative proposal if enacted into
law will cost American taxpayers over
$600 million a year. This is only the be-
ginning. History teaches us we may be
assured that within the next 2 years an-
other pay increase bill will be requested.
Also, as the Federal bureaucracy grows,
the price tag for this increase will grow
with it.
Frankly, Mr. President, I believe that
this proposed legislation would be a fan-
tastic raid upon the Public Treasury.
Long ago it was written:
Enter ye the strait gate: for wide is the
gate, and broad is the way that leadeth to
destruction, and many there be which go In
thereat: because strait is the gate, and nar-
row is the way, which ieadeth unto life, and
few there be who find it.
The gate to the Public Treasury is wide,
and broad is the way. Far too many
there be which go in thereat. As Sena-
tors of the United States it is our duty to
guard this gate and to protect it to the
utmost against unreasonable and unwar-
ranted entry.
I cannot in good conscience support
the proposed pay raise bill in its present
form- It would increase the salaries of
Cabinet officers from $25,000 to $40,000
per year, and make comparable increases
for salaries of the various and sundry
deputy secretaries, under secretaries, as-
sistant secretaries, and administrators-
some to $38,500 per annum. Then there
are substantial raises for the deputy as-
sistant secretaries, deputy commission-
ers, administrative assistants, executive
assistants, and right down the line.
These bureaucrats frequently solicit and
because of pressing their applications re-
ceive these appointments. Frequently,
probably almost daily, I am besieged with
requests from qualified men and women
seeking appointive Federal Jobs. I am
sure that this is true of other Senators.
We hear the argument that many im-
portant positions go unfilled or are oc-
cupied by unqualified people because
those who are qualified to fill them will
not leave private industry for a lower
Federal salary. I am sure that this is
probably true in some cases. However, I
have never seen the results of any study
which named names and named jobs that
have gone begging or whose functions
are not being adequately performed for
this reason.
If it is necessary to raise the salaries
for 10, 20, 50, 100, or even 1,000 Federal
jobs in order to lure competent people, is
it necessary at the same time to raise the
salaries of all Federal employees for the
sake of these few? Frankly, I am tired
of this wornout argument. If there are
certain Federal positions for which there
is proof that a higher salary level is
needed to attract competent people, then
let these jobs be named specifically and
let specific legislationbe enacted to cor-
rect the problem.
For years every time a pay raise bill
comes before the Congress, we have
heard this timeworn argument. I ask
my colleagues, is it necessary and fair to
the taxpayers to raise the pay of 2,000
second-, third-, and fourth-level ad-
ministrators in order to obtain 50 quail-
fled first-level administrators?
Regarding U.S. judges It is well known
that whenever there is a vacancy on the
Federal bench. many, sometimes hun-
dreds, of competent lawyers seek the
appointment. There are at most but a
few hundred lawyers in our Nation, who,
if offered an appointment to the Federal
bench. would not accept. Although
there may be some, It is extremely doubt-
ful that a lawyer would refuse appoint-
ment to the Federal bench at $22,500 a
year and agree to accept were the salary
to be increased to $35,000. I would like
to know the name of one man in the
Nation who would refuse appointment
to the U.S. Supreme Court, the highest
honor a lawyer may receive, solely be-
cause this position pays $35,000 a year
and not $45,000.
It should be remembered that in ad-
dition to the prestige and other emolu-
ments that accrue to a member of the
Federal bench, these judges enjoy their
salary as long as they live whether they
continue to serve actively or whether
they retire following 10 years of service
having reached the age of 70. Talk
about job security, they have it for life
and with all the trimmings.
There are Federal judges today ::n
Ohio and in most other States who have
reached retirement age and could have
retired years ago. Evidently, they do
not feel that they are being underpaid
as many continue to serve actively well
beyond the retirement age of 3 sco::?e
and 10.
Furthermore, the vast body of Fed-
eral employees, protected as they are by
Civil Service, on retirement receive an
annuity which is comparable to the best
In private industry.
Mr. President, I am also opposed to the
$10,000 salary increase for Senators and
Members of the House of Representa-
tives. However, there is much more
merit to a reasonable increase in salaries
for Members of the Congress than for
appointed officials and the judiciary. It
seems to me outrageous to propose that
the Administrator of some independent
agency should receive a salary in excess
of that of a U.S. Senator.
The bill pending in the House of Rep-
resentatives would create a new group
of bureaucrats, many hundreds of whom
would receive salaries of $38,500 per an-
num. They are appointed officia`s.
They do not have to spend campaign
money to be elected. The cost of cam-
paigning to be elected to the House of
Representatives or the U.S. Senate has
become terrific, almost beyond compre-
hension. Furthermore, following elec-
tion, even though a candidate had politi-
cal contributions to help him defray the
cost of campaigning, he should maintain
close relations with his constituents and
wishes to do that. This means frequent
travel to his home State. It means
maintaining his home there as well as
a Washington residence. Contrary to
the belief of many people, Senators do
not have expense accounts except for
transportation costs alone of two trips
a year to their home States. Further-
more, I seriously question whether there
would be any additional candidates for
election to the Congress because of the
proposed pay raise. No doubt the same
men and women would be elected or re-
turned to the Congress. The fact is that
very few men and women of high
achievement in private life would refuse
appointment or certain election to the
Senate of the United States or the House
of Representatives.
Another argument which we con-
stantly hear in connection with pity
raises is that the Federal Governme::aL
must be competitive with private indus-
try. Private industry bases its pay scale
on profits. Where profits are great, sal-
aries in many instances are supercolos-
sal. I make no complaint about this.
However, no such factor governs the
Federal Government's payroll. Our Gov-
ernment's only source of income for pay-
ing salaries is the taxpayer who, heaven
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CONGRESSIONAL RECORD -SENATE
Growth of the unfunded liability
[In millions]
21467
Fi+cal year
Unfunded
liability
Includes increase- .
Amount
Remarks
as of
Juno 30
Due to act of-'
Amount
Duo to act of-'
1921 ---- ------
`$249
----------------------------
----------
----------------------------
----------
*Initial unfunded liability.
1922-----------
----------
----------------------------
----------
----------------------------
----------
1923_ --------
----------
----------------------------
----------
----------------------------
----------
1924-----------
1926___________
1926
--------
-287
"--'-'------'--------"----
R Sept. 22, 1922_
1926
l
3
I J
(7)
---- (-?-)
$50
-------____-------------??
P Mar. 4, 1923_ _______
-----?---
(7)
--
-
*Same valuation assumptions as in 1921.
1926_-_--------
1927_----------
355
.. 393
y
,
----------
u
R,
----
----------------------------
-------------??----
------
----------
1928-----------
406
----
^-------------------
-
1929_----------
1930__-____--__
. 404
*730
---------- --
R, I May 29, 1930________
----
327
---------------------
_____________________
----------
__________
*Also includes effect of revised valuationassumptions.
1931
------
----
---------------------
-----
1932
-
----
---------`-----------
-----
1933-----------
1934
-}
1
000
- -----------
R June 30, 1932
----------
94
---------------------
no 16, 1933___ ______
----------
$61
____-_____
1035 __________
,
1,174
____________________________
_ ----
----------------------------
---
_ _
assumptions as in 1930.
-Same valuation
1936 ---------
'----------
------------------ ----------
----------
----------------------------
----------
1937 ----------
----------
------------------??------
----------
----------------------------
----------
1938 ----------
----------
----------------------------
----------
--------^?----------------
----------
1939 ----------
1940 ----------
--------
1, 573
-----?---------------------
-------?---------------^?
----------
----------
-------------?--------?---
---??-------?------------
----------
----------
*Reflects changes in valuation assumptions.
1941 ----------
----------
---------------------------
----------
---------------------------
--------?
1942 ----------
----------
----------------------------
----------
---------------------------
----------
.. .
1943 ----------
*2,921
1944___________
3,083
24
R
---
EJan
1942
(7)
---------?-^--?---?--?-
---- -----
-Estimates for 1943 46 were overstated in view of later outback o
1946_----------
3,314
,
,
------
.
employment from world war II levels.
3,516
1947___________
-2,866
1048________
}R Feb. 28
1,238
I Feb. 28, 1948___-______
224
*Aet of Sept. 30, 1947, based on 1940 valuation assumptions.
1948_-_________
4,328
,
1
1949-----------
1950-----------
----------
4,839
-----??-------------------
I July 6, 1950----------
----------
130
------------??------------
----------------------------
----------
-- ---'---
1951-----------
4,875
----------------------------
----------
----------------------------
----------
1952_----------
1953
4,938
-9,912
------------------~ --------
I July 16, 195.._________
----------
28
----------------------------
____________________________
----------
__________.
*Reflects changes in valuation assumptions, including reduction of
___________
interest rate from 4 to 3 percent.
1954-----------
_
______
1955-
10,583
11, 971
----------------------------
I Aug. 31, 1964-_______
----------
. 223
----------------------------
, E (*)--------------------
----------
429
*Carcer-conditional appointment system.
__
_
1956_________-_
13,838
P Juno 10,1955______-_
821
I Aug. 11, 1965___ ______
440
June 28,1955--------
----------
----------------------------
------'---
1957-----------
1958
17,951
451
*27
R July 31, 1966---------
P May 27, 1958________
3,665
1,841
--------------'-------------
I June 25, 1959__-_______
---------
104
*Reflects revised assumptions in 1958 valuation which fully took into
___________
,
Juno 20, 1958--------
----------
---------- ---------------
----------
account liberalization pay increases, and other factors affecting
1959-----------
28, 363
----------------------------
----- ---
----------------------------
---??--
unfunded liability since prior valuation in 1953.
1960__-________
'. 31,143
P July 1,1960__-_______
1,700
E July 1,1960 -___-___-__
100
1961_----------
32,547
I July 31,1961--_______
330
----------------------------
----------
1962_----------
33,660
----------------------------
P Oct 11,1062-_______-_
---------
2,125.
-----?--------------------
I Oct. 11, 1963___________
----------
575
1963___________
38,681
{R Oct. 11, 1962---------
1,100
----------------------------
-------
1963_-_________
- -34,060
____________________________
__________
____________________________
__________
*Reflects change in valuation interest rate from 3 to 8;ii percent.
1 See below:
R=Retirement Act liberalizations.
I=Increases in existing annuities.
B = Extensions of co verage.
P=1'ay acts (classified and postal).
Mr. LAUSCHE. Mr. President, for
many years Congress has been shirking
its responsibility to put the civil service
retirement system on a sound actuarial
basis, and yet now it is proposed that a
move be taken to further increase this
unfunded liability.
In his special message to the Congress
dated February 20, 1962, the President
recommended that salary increases for
Federal employees be effective in three
annual stages beginning in January
1963, which meant that the full impact
of the costs would be absorbed into the
Federal budget through 3 fiscal years.
Not only does this bill violate the rec-
ommenations of the President, but for
the first time in history, if this legisla-
tion is approved, one pay increase would
be superimposed on another pay increase
which is not yet in effect.
The bill passed by the House will en-
tail a cost of $60 million more than the
President's recommendation. In the
first four postal levels and the first five
classified levels, the cost of the increase
has been raised $200 million over the cost
of the President's program; but reduced
by $140 million in the top levels embrac-
ing the grades from 9 and up; thus leav-
ing a net increased cost of $60 million
over the President's recommendation.
Source: U.S. Civil Service Commission, Bureau of Retirement and Insurance, July
10, 1063.
The forces of inflation are pent up and
ready to break loose. Evidences are ap-
pearing of a wave of action that will add
inordinately to the cost of producing
goods in _our country. Demands are be-
ing made for a 35-hour week, which the
President and the Secretary of Labor feel
will not be to the economic advantage of
the citizenry as a whole. With these
forces in operation, it is wholly inadvisa-
ble for Congress to give pay increases of
the type contemplated for Congressmen,
judges, Cabinet members, commission
and board members, and others; more-
over, it is not fair to give a general pay.
increas3 in excess of what the presentl
law provides. ~-JJ
A QUIET DEATH FOR DRUG PROBE? -
Mrs. NEUBERGER. Mr. President, I
cannot believe that the Senate's preoc-
cupation with its own ethical shortcom-
ings, however appropriate and timely,
will divert our attention from the equally
serious charges of misconduct by drug
manufacturers.
Yet, yesterday's Herald Tribune pre-
dicts just such imminent burial of the
drug investigation. William Haddad of
the Tribune staff quotes an anonymous
Senator's prediction that the Baker af-
fair will furnish a smokescreen to cover
the premature demise of the drug investi-
gation:
Everyone's just waiting for things to quiet
down here. Newspapers are notorious for
getting interested in something else. You've
got Bobby Baker to play around with now,
and who"s going to care about us?
We are investigating ourselves. We
are continually looking for flyspecks on
the ethical balance sheets of our most
prominent executive officers. But we are
unaccountably diffident in investigating
charges of the most flagrant and im-
moral practices in a critical private in-
dustry.
It is charged--and a prima facie case
has been made-that there exists an in-
ternational cartel which has succeeded in
establishing unnaturally high price levels
for drugs.
It has been charged-and again there
appears to be substantial supporting evi-
dence-that American drug companies
have participated in a "concerted and
malicious campaign" to forestall the sale
of low-cost, generic-name drugs in Latin
America.
Tomorrow the Antitrust and Monopoly
Subcommittee is scheduled to meet to
determine the fate of the drug investiga-
tion. Now under subpena by the sub-
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21468 CONGRESSIONAL RECORD -SENATE
committee are the records of several
major drug companies. There is reason
to believe that these records will reveal
the internal mechanism of the interna-
tional cartel, including the secret code
utilized in pursuing the ends of the car-
tel, and actual price-fixing agreements
on major drugs.
If the subcommittee decides to termi-
nate the investigation and if the sub-
penas are lifted, these records, if they
exist. can be destroyed with impunity.
Mr. President, the people of the United
States will not be diverted from the pur-
suit of the facts about drug prices. If
this investigation is killed, I predict that
its ghost will return to plague those who
presided at its execution.
Mr. President, I am particularly con-
cerned about this problem because the
latest news from my State of Oregon
is that druggists are refusing to fill pre-
scriptions of patients on welfare. be-
cause the State is falling behind in pay-
ing for those prescriptions. The high
cost of drugs is one of the things that
entails a very unusual financial crisis
in our State.
Only last week the fifth biennial con-
vention of the Industrial Union Depart-
ment, AFL-CIO, reflected the great pub-
lic concern which has been aroused over
the drug price disclosures.
We ask the Senate Subcommittee on An-
titrust and Monopoly-
The IUD resolved-
to publicly examine the grave charges of
the existence of a drug cartel which alleg-
edly fixed prices to an excessive level in
South America and had sabotaged efforts to
bring drugs Within the reach of South Amer-
ican workers.
This resolution and the expectation of
the American public at large must not
be disappointed.
WATER RESOURCES RESEARCH IN
THE FEDERAL GOVERNMENT
Mr. RIBICOFF, Mr. President, an ex-
cellent article summarizing the report of
the Task Group on Coordinated Water
Resources Research of the Federal Coun-
cil for Science and Technology appears In
the current edition of Science magazine.
I ask unanimous consent that the article,
written by Dr. Roger Revelle of the Uni-
versity of California and former science
adviser to the Secretary of the Interior,
be inserted in the RECORD at the end of
my remarks.
Of special interest to me was Dr. Re-
velle's discussion of the need for coordi-
nation in the field of water resources. He
points out that some three dozen bureaus
or equivalent units in seven major de-
partments and independent agencies of
the Government are engaged in water
resource research. He calls for concert-
ed efforts to achieve effective coordina-
tion among these various governmental
units.
The Subcommittee on Reorganization
and International Organizations is at the
present time conducting a study of in-
teragency coordination in the field of
environmental hazards. One such haz-
ard is the problem of water pollution. As
Dr. Revelle points out:
Various noxious substances are beh g
dumped into our rivers, lakes, and estuark s.
Tho long-term effects of many of these ( n
human health and welfare are unknown.
A strong Federal water pollution COI -
trol program is now in operation. Ti e
Senate, under the leadership of the Set -
ator from Maine [Mr. MUSsf1E 1, his
passed S. 643, which further improves
and strengthens this program. But I
submit, Mr. President, that until A e
adopt a national goal with respect to
stream protection the excellent prografr s
Conieress has adopted will not reali?e
their full potential.
In December 1960 at the National Cor-
fereiice on Water Pollution a distir-
wished panel of experts In this field rec -
ommended that the goal of pollutio i
abatement should be to-
Protect and enhance the capacity of tt.e
water resource to serve the widest possible
range of human needs. and that this got I
can be approached only by accepting tt e
positive policy of keeping waters as clew I
as possible, as opposed to the negative policy
of attempting to use the full capacity c f
water fo: waste assimilation.
Another panel of experts at that sam>
conference expressed a similar idea I 1
different terms-
We recommend the adoption or a nation: I
credo- to be given as wide and consistent
publicity as is feasible. The content of the
credo would be: (1) Users of water do net
have an Inherentright to pollute; (2) user;
or public waters have a responsibility fcc
returning them as nearly as clean as to tech
nically possible; and (3) prevention is Jue:
as important as control of pollution.
The time has come for the variou;
Federal agencies Involved in water re
sources development and pollution con
trot in particular to establish a true,
national clean water program--coordi
nated for efficiency and economy and
directed toward a national goal toward
which all can aspire-the positive goal
of keeping water clean as opposed to th,!
negative policy of tolerating all but th.
most hazardous levels of pollution. It,
so many circles, both in and out of Gov
ernment, the policy has been to use th-
full capacity of water for waste assimila
Lion.
It is not enough to be against pollu
tion. That is the concept of control-o'
repairing damage already done. W.'
must be for clean water. That is tht.
concept of prevention. Technically wi
know enough to accomplish this goal
The question is whether we are willini
to do what needs to be done. Dr. Re
velle's article shows how physical, bio-
logical. engineering and social science:
can help solve the problem.
There being no objection. the article
was ordered to be printed In the RECORD
as follows:
WATER-RESOURCES RESEARCH IN THE FEDERAL
GOVERNMENT-PHYSICAL, BIOLOGICAL, EN-
GINEERING. AND SOCIAL SCIENCES CAN HELL
SOLVE A PROBLEM OP GROWING DIMENSION:
(By Roger Revelle)
Water is the most abundant substance it
the part of our planet that Is accessible tc
man. Nearly all our planet's water is salty
and this is perfectly satisfactory for the
creatures that live in the sea. But lane
plants and animals must have fresh water
They can live only because the sun contin-
'w'ember?
ually distills pure water from the ocean and
some of this distillate is carried In the air as
vapor until it condenses and drops on the
land. The flux of water from the ocean into
the alr, onto the land, and back to the sea,
is called the hydrologic cycle.
Although the hydrologic cycle is exceed-
ingly complex In detail, in general we can
think of the water particles as following one
of three paths. li) The larger part of the
water that falls on the land surface pisses
back to the air, either directly by evaporation
or through the bodies of plants in transpira-
tion. It may recondense and fall again on
the land, or It may fall in the ocean. tlii
A smaller part of the water that reacher the
land surface remains in liquid form and
either sinks into the ground or stays or. the
surface. This liquid water runs downhill or
flows underground until it is gathered by
rivers that carry it back to the sea. (iii) A
very small fraction Is taken up In the bodies
of plants and animals. Some of this fraction
Is broken down by plants, which use- its
hydrogen in forming their tissues. The hy-
drogen Is later recombined with oxygen in
animal and plant respiration, and the mater
thus produced is returned to the air.
The time required for water particles to
travel through the hydrologic cycle varies
widely. A particle evaporated from the ocean
near shore may fall as rain In a coastal re-
gion, evaporate again almost immediately,
and return to the ocean as rain within a few
hours. Water falling as snow In the moun-
tains may remain for months (or, in glaciers,
for centuries) before it melts and runs off.
Water that sinks Into the ground may re-
main there a few years or many millennia
before reappearing on the surface to com-
plete Its journey to the sea. Thus, enormous
quantities of fresh water are stored under-
ground. In the UnitedStates the volume of
underground fresh water Is probably at least
10 times the average annual precipitation of
30 Inches.
The amount of water evaporated each year
from the oceans would be sufficient. if it were
carried to the continents and uniformly dis-
tributed, to cover all the land with more than
100 inches of rain and snow. This Is three
times the potential annual evaporation from
land surfaces. The fact is, however, that the
average depth of rainfall over the ocears is
much greater than the average over the con-
tinents. On about a third of the land areas
of the earth the annual precipitation is less
than the potential evaporation. Life is pos-
sible in these arid regions only because water
is carried to them from nearby mountains,
where rain and snow exceed evaporation, and
because precipitation in the and lands oc-
curs sporadically, so that some of the water
can be caught and stored by plants, or In the
ground, before it can evaporate. Ever- in
humid regions the hydrologic cycle slows
down and speeds up from time to time, caus-
ing periods of drought to alternate such
floods. If we can think of the hydrologic
cycle as nature's plumbing system, it must
be admitted that from man's point of view
the pipes are erratically arranged and the
valves capriciously managed. Man is slcwly
becoming more skillful at forecasting fluct ua-
Lions in this system; someday he may be able
to improve the arrangements.
WATER SUPPLY OF THE UNITED STATES
The United States, exclusive of Alaska rnd
Hawaii, has a surface area of about 2 bil-
lion acres. On the average, nearly 5 bil:.ion
acre-feet of water per year falls on this area.
Seventy-one percent of this water evaporates
or is transpired back to the air near the place
where it falls. The remaining 29 percent
runs off or sinks Into the ground and is
eventually gathered by streams. A quantity
equivalent to about one-fourth the stream-
flow (345 million acre-feet, 7 percent of the
total annual precipitation) is diverted from
rivers or pumped from wells for human 'ase.
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CONGRESSIONAL RECORD - SENATE 21465
programing of AEC operating funds designed
to provide an additional $109 million for
activities related to the implementation of
safeguards for the remainder of fiscal year
1964.
After intensive hearings, the committee is
of the opinion that the proposed amendment
to Public Law 88-72, in conjunction with the
additional operating funds which will be
provided for the weapons development pro-
gram, represents a sound initial program
for the implementation of safeguards to the
extent described below. -
1. Maintenance of Strong Weapons
Laboratories
The committee believes that the mainte-
nance of adequate modern facilities at our
nuclear weapons laboratories is perhaps the
most essential of the safeguards proposed
by the President. -Nuclear weapons devel-
opment is a complex and vitally important
scientific endeavor in which the United
States must rank as second to none. The
maintenance of modern laboratory facilities
is necessary in order to attract and retain
those competent scientists who can help to
assure U.S. leadership in the nuclear weap-
ons field.
In furtherance of this objective, this bill
provides for the replacement and moderniza-
tion of facilities which are currently inade-
quate to permit the full utilization of the
highly specialized scientific talents of labora-
tory personnel. Such projects as 64-d-11,
high-temperature chemistry facility at Los
Alamos Scientific Laboratory; 64-d-14, haz-
ards control addition at Lawrence Radiation
Laboratory; and 64-d-18, development lab-
oratory at Sandia Base, should contribute
significantly to the productivity and vitality
of our nuclear weapons laboratories.
2. Readiness for the Resumption of
Atmospheric Testing
The committee wishes to emphasize the
importance of maintaining a state of readi-
ness for the resumption of atmospheric test-
ing on short notice should further tests in
the atmosphere be deemed essential to our
national security or in the event of a viola-
tion of the nuclear test ban treaty by the
Soviet Union.
In this connection, project 64-d-13, radio-
chemistry building, Lawrence Radiation Lab-
oratory, Livermore, Calif., will provide neces-
sary facilities for analysis of material. As
noted by the AEC:
"This project is needed to provide immedi-
ate improvements to the physical plant of
the Laboratory (Livermore) with a view to
insuring a high level of nuclear weapons
research and development progress coupled
with the readiness to resume full scale weap-
ons testing in the atmosphere at short
notice."
Data presented to the committee indicates
that this project is required for the radio-
chemical analysis workload of the test pro-
gram. There is at present a shortage of lab-
oratory space for chemistry activities.
3. Continuation of a Comprehensive and
Aggressive Underground Nuclear Testing
program
The committee strongly endorses a pro-
gram of vigorous underground nuclear test-
ing. In this connection, project 64-d-21 will
help to increase the rate and efficiency of our
underground weapons tests and improve the
collection of test data. The AEC has stated
that these facilities are necessary for the safe
and effective conduct of intensified nuclear
weapons activities at the Nevada Test Site.
4. Nuclear Weapon Test Detection
As further tangible evidence of the Joint
Committee's deep interest in assuring the full
and effective implementation of the test ban
treaty safeguards, a specialad hoc subcom-
mittee visited installations in the worldwide
nuclear weapon test detection system, early
this month. Upon returning from this ex-
tensive inspection trip, Chairman PASTORE
stated:
"We have returned from our inspection
with a feeling of greater assurance in our
ability to detect a violation of the test ban
treaty should such a violation occur. How-
ever, improvements are being, and must
continue to be, made. * * - * Generally
speaking, certain improvements can be ac-
complished through additional research and
development and augmentation of the exist-
ing systems, and we have been assured that
this is currently under consideration within
the Department of Defense, the AEC, and
other executive agencies." -
Although this supplemental authorization
bill does not include additional funds for re-
search and development in the test detection
field, nor for additional test detection facili-
ties, which is the prime responsibility of the
Department of Defense, the Joint Committee
intends to follow closely further develop-
ments in this field. In a classified report
on its recent inspection trip, to be issued
shortly, the committee will review our over-
all test detection requirements and include
certain recommendations for improving our
detection capabilities.
As noted above, in addition to the author-
ization for capital facilities requested in this
bill, the Atomic Energy Commission stated
that, through the reprograming of operating
funds, an additional $109,800,000 would be
added to the operating budget for fiscal year
1964 for the weapons development program.
These additional funds, coupled with the
capital facilities proposed In this bill, should
provide for an accelerated nuclear weapons
program, designed to effectuate the test ban
treaty safeguards.
section 101 of Public Law 88-72 by $17,945,-
000. The amended authorization figure is
$190,507,000.
Section 2 contains a line item listing of
12 construction projects to be added to sec-
tion 101(d) of Public Law 88-72, under the
heading "Atomic weapop.s." The total esti-
mated cost of these projects is $17,945,000.
BACKGROUND
On October 16, 1963, the Atomic Energy
Commission transmitted to the Congress a
proposed bill amending Public Law 88-72,
the Atomic Energy Commission fiscal year
1964 authorization act, by providing a sup-
plemental authorization of $17,945,000 for 12
new construction projects for the nuclear
weapons development program.
The proposed legislation was introduced
by Senator PASTORE (by request, S. 2267) on
October .29, 1963, and by Representative
HOLIFIELD (by request, H.R. 8971) on Oc-
tober 30, 1963.
Hearings were held before the Subcommit-
tee on Legislation on October 31, 1963, as
summarized in the next section of this re-
port.
On November.20, 1963, the Subcommittee
on Legislation met and approved, without
dissent, H.R. 8971 and S. 2267 with the
recommendation that they be reported favor-
ably by the full committee.
On November 20, 1963, the full committee
met and voted to approve the bills without
amendment and adopt this report thereon.
COMMENTS BY THE JOINT COMMITTEE
A. Safeguards in connection with the nuclear
test ban treaty
On September 10, 1963, in connection with
the Senate debate on the ratification of the
limited nuclear test ban treaty, the President
wrote to Senators MANSFIELD and DIRKSEN,
the Senate majority and minority leaders,
outlining a program of safeguards designed
to minimize the risk inherent in the limited
nuclear test ban treaty.
In pertinent part, the President outlined
the following safeguards in connection with
the treaty:
* * * * *
"Underground nuclear testing, which is
permitted under the treaty, will be vigorously
and diligently carried forward, and the equip-
ment, facilities, personnel, and funds neces-
sary for that purpose will be provided.
"The United States will maintain a pos-
ture of readiness to resume testing in the
environments prohibited by the present
treaty, and it will take all the necessary steps
to safeguard our national security in- the
event that there should be an abrogation or
violation of any treaty provision. In par-
ticular, the United States.retains the right
to resume atmospheric testing forthwith if
the Soviet Union should conduct tests in
violation of the treaty. -
"Our facilities for the detection of possible
violations of this treaty will be expanded and
improved as required to increase our assur-
ance against clandestine violation by others.
* * * * *
"This Government will maintain strong
weapons laboratories in a vigorous program
of weapons development, in order to insure
that the- United States will continue to have
in the future a strength fully adequate for
an effective national defense."
Similar assurances were given to the Con-
gress in communications from the Secretary
of Defense and the Joint Chiefs of Staff.
B. Implementation of safeguards
It is the committee's view that the imple-
mentation of the safeguards enumerated by
the President is a matter of utmost im-
portance for the future security of the Na-
tion. - With this background in mind," the
committee carefully considered the request
for the 12 additional construction projects
proposed in this bill. In addition the com-
mittee received testimony concerning a re-
THE SUPREME COMMITTEE FOR
LIBERATION OF LITHUANIA
Mr. LAUSCHE. Mr. President, three
times within 25 years the Soviet Union
invaded, terrorized and oppressed the
peaceful little Baltic nation of Lithuania.
Each time Lithuanians fought so val-
iantly for freedom that the Soviets re-
sorted to extreme measures to gain con-
trol. In two cases, 1919 and 1940-41,
the Russians were expelled. But, un-
happily, in 1944 Red Russia returned
and little Lithuania fell. -
After great expenditures of time and
money in a one-sided battle, the Com-
munists have convinced many people
that Lithuania asked to be incorporated
into the Soviet Union: That is not a
fact, and we must refute that great lie
here and now, lending our voices to those
necessarily faint protests from Lithua-
nians themselves. It has been impossible
for Lithuania to speak for herself, be-
cause Russia exercises absolute control
over the territory of Lithuania. There
is no free exchange of information or
freedom of speech for Lithuania. Until
2 years ago no outsider could even visit
Lithuania. Even now such visits are
carefully controlled. This adds another
proof of the involuntary servitude of
Lithuania to communism plain enough
for anyone to see.
Lithuania has not been completely
unrepresented to the free world how-
ever. There is a loyal group of Lithua-
nian people in the United States who
have been doing everything they can to
protest Soviet action. They are fighting
to regain the independence and freedom
of Lithuania. This- group is the
Supreme Committee for Liberation of
Lithuania, founded in 1943 by under-
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CONGRESSIONAL RECORD - SENATE November
ground resistance groups, and celebrat-
ing its 20th anniversary in New York,
November 23 and 24.
The members and supporters of the
committee have shown amazing courage
and loyalty in tlhe face of overwhelming
hardships. I am sure they only desire
the greatest peace and welfare for their
people. On the occasion of their 20th
anniversary, on behalf of the people of
Ohio. I express felicitations to those
brave Lithuanians who in 1940. and
Fifth. That the retirement pay of a
Member of Congress is fixed at the rate
of 21'2 percent of his salary for each year
of service. A Member of Congress who
has served 20 years would, under the
proposed pay raise, become entitled to
a retirement pay of 21,'2 percent a year,
which is 50 percent-20 times 21,E per-
cent---of his new salary of $32,500, equal-
ing $16,250 per year: instead of 50 per-
cent of his old salary of $22,500,
%gqualing $11,250 a year. Based on the
especially in 1944, stood Intrepidly "present salary of $22,500, if a Member
against the Russian Red giant. Congress should retire at the end of
2 years, his monthly pension would be
n.LN"W YLi Jr'Lonll VAX UN-
CREASES FOR MEMBERS OF CON-
GRESS AND OTHERS
Mr. LAUSCHE. Mr. President, on two
previous occasions. I spoke on the floor
of the Senate vigorously opposing the
proposed salary increases for Federal
judges. Cabinet members, and Members
of the Congress contained in the pending
omnibus salary increase bill. This par-
ticular section of the bill is highly con-
troversial, as it should be. Usually, when
controversial bills are before the Con-
gress, Senators receive both "pro" and
"con" mail in great volumes. The "pro"
mail on the proposed increases for
judges. Cabinet members, and Members
of the Congress is extremely conspicuous
by its absence, at least in my office. I
am certain that the taxpayers cannot
comprehend the philosophy of the Con-
gress in professing economy and tax re-
duction and encouraging labor and in-
dustry to hold the line on wages and
prices. and then, in the second breath,
exclaiming that elected and appointed
Federal officials should have their sal-
aries increased substantially.
Mr_ President, the proposed bill would
increase the salaries of Congressmen
and Senators from $22,500 to $32,500
per year, a net increase of $10,000 per
year. While it is a matter of public rec-
ord, it is little known among constitu-
ents throughout the country that Con-
gressmen and Senators, in addition to
their annual salaries, are accorded at
the expense of the taxpayers numerous
fringe benefits. I wish to point out:
First. That $3,000 of a Senator's salary
is deductible for income tax purposes.
Second. That each Senator may be re -
imbursed annually for two round trips
to and from his home State.
Third. That each Senator is allowed a
stationery account of $1,800 per year,
and that at the close of a fiscal year, he
may claim any unexpended balance in
cash for his personal use.
Fourth. That each Senator may receive
an allowance of $1,200 per year for office
rental in his home State. This sum may
be used to defray rental expenses of a
combination office in which the Senator
may engage, as an example, in private
practice along with serving his constitu-
ents in an official senatorial manner.
$562.60, while under the pending bill
providing for $32,500, should he retire at
the end of 12 years, he would receive
30 percent-12 times 21,z percent-of his
new salary, equaling $812.50 per month,
which is a $249.90 per month increase.
Mr. President. I ask unanimous con-
sent that a table showing the annu.ty
title requirements for Members of Con-
gress, prepared for the House Post
Office and Civil Service Committee, may
be printed at this point in the RECORD.
There being no objection, the table
was ordered to be printed in the RECORD,
as follows:
%tininamn age at 11iru nuns service
- parattua[
Laaancdb~lr m[m,itaa d. 162_ _____________
DI
- -----------
\ny age. _ Ina[ned i:.tr reduced .___. .5.5______________
tn y age......
Speclalrequirements
5years ._ -----------------
10 years. s a Member__.._
5Years ._ -----------------
30 years. ----- ----------
25 years. ____--_.-____-__-
5ta------....__-_1 20years (r9Congresae-._
-----M-fern-1 unrc't ,'o,I. Anv ag.~ ------- 1 5 years._ ----- __________
i._.._.t--_-_------_-3 10yearsasaMember
------
Ik?fern'dreducrd------ 1_.__'to-_-------- ! 20 years, ncludingl9asa
Stenltr r.
None.
no
,lust t.o' disabled.
None.
Any separation except by resignation
or expulsion.
Do.
Begins at age 62.
Begins at age 60.
Begins at age 50.
, No i,rovisinn_
Not. Lift- insurance and health bent -fits continue a ter retirement if M,-ndxr retires on :nmaediate annuity,
after IZ wars of service or for dicnbllity.
Mr. LAUSCHE. Mr. President, it is
true that Senators pay into the retire-
ment fund 71/7 percent of their salary,
which is matched with an equal amount
of 71!. percent by the Federal Govern-
ment. The portion of the pending bill
providing $10,000 increases in salaries
for Senators and Congressmen is esti-
mated to cost $5.4 million annually.
This figure does not include Cabinet of-
ficers, judicial employees, and Federal
judges, as well as all others that are
covered in the proposed bill. It Is in-
teresting to note that the amount the
Federal Government will be obligated to
provide to match the 71,i percent paid
into the fund by Congressmen will total
$405,000 annually. A similar added
obligation on the part of the Federal
Government would apply to salaries of
all except judges covered in the bill.
The judges pay no part of their salary
into the retirement fund. They, at a
certain age with a certain minimum pe-
riod of service, can go on the inactive
list and receive full pay for the balance
of their lives. They do not retire but
go on the inactive list supposedly sub-
ject to call for special assignments.
Therefore. It is a misnomer to label the
proposed salary increase bill as costing
$600 million; it will cost the taxpayers
much more than that.
Mr. President, passage of this salary
Increase bill, as drafted, is a flagrant
breach of prudence. It would require
the Federal Government to substantially
increase its contributions to the retire-
ment fund, which is already in a very
precarious position. I want to point out
that as of June 30, 1963, the unfunded
liability of the civil service retirement
fund, in which the Senators participate,
was $34 billion. I am informed that if
the pending salary increase bill passes,
it will result in an increase of about
one-half billion dollars to this unfunded
liability.
It is estimated that the general pay
increase of 1962 added $1.9 billion to the
unfunded liability, bringing it up to the
June 30. 1963, figure of $34 billion.
In 1921, when this fund was first es-
tablished, the unfunded liability was $249
million. Since that time, as a result of
the Federal Government's failure for
long periods of time to provide for its
matching contributions and its negli-
gence in making adequate appropria-
tions to take care of the added cost of
pay increases and pension liberalization,
the unfunded liability has steadily in-
creased to its present figure.
It is true that this unfunded liability
is an obligation of the Federal Govern-
ment, but in the final analysis, it is a
commitment by the Federal Government
affecting every Federal taxpayer in the
country.
Mr. President, I ask unanimous con-
sent that a table showing the growth of
the unfunded liability, prepared by the
U.S. Civil Service Commission, Bureau
of Retirement and Insurance, may be
printed at this point in the RECORD.
There being no objection, the table
was ordered to be printed in the RECORD,
as follows:
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CONGRESSIONAL RECORD -APPENDIX A7433
"Further, That likewise we offer our sup-
plications in behalf of President Lyndon B.
Johnson. May God in His infinite wisdom
bestow on him an abundance of His richest
gifts, wisdom, courage, and faith and grant
to him divine guidance as he assumes the
responsibilities of leadership of the peoples
of the free world, looking toward and hop-
ing and praying for the day when all men
everywhere shall enjoy the unfettered rights
of life, liberty and the pursuit of happiness;
and
"May each one of us, with divine help, re-
dedicate our lives to the God given privileges
which are ours to work and pray that the
whole wide world may become holier and
happier, as we earnestly strive to banish from
our own hearts and minds any personal
prejudice and every unkind thought. May
friendship, charity, and benevolence become
in fact the motivating forces which guide
our thoughts and words and deeds."
Given under my hand and under the great
seal of the supreme lodge and attested by
the supreme secretary thereof, on this the
twenty-fifth day of November in the year of
nineteen hundred and sixty-three and the
Pythian period the one hundredth.
JOSEPH B. HACKER,
Supreme Chancellor.
Attest: E. J. KNELPER,
Supreme Secretary.
Kennedy Memorial Resolution of Coun-
cil of the City of Binghamton, N.Y.
EXTENSION OF REMARKS
OF
HON. HOWARD W. ROBISON
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Thursday, December 5, 1963
Mr. ROBISON. Mr. Speaker, on De-
cember 2, 1963, the Council of the City
of Binghamton, N.Y. meeting in regular
session, unanimously adopted the fol-
lowing resolution honoring the. memory
of the late John Fitzgerald Kennedy,
which resolution was thereafter ap-
proved, on December 3, by the Honorable
John: J.. Burns, mayor of Binghamton,
and then forwarded to me with the re-
quest that it be inserted in the CoN-
GRESSIONAL RECORD.
Accordingly, under leave to extend my
remarks and to include extraneous ma-
terial, the resolution is hereto appended:
IN COUNCIL OF. THE CITY OF BINGHAMTON,
STATE OF NEW YORK, A RESOLUTION HON-
ORING THE MEMORY OF JOHN FITZGERALD
KENNEDY
Whereas John Fitzgerald Kennedy, the
35th President of the United States of Amer-
ica, and the greatest leader. of our time, has
met his untimely death on November 22,
1963, at the hand of a cruel and cowardly
assassin; and
Whereas his dedication to the cause of
peace and the elevation of human dignity
will always be remembered by the immortal
words and work he left behind, which are
not only known to this grieving Nation but
to the world; and
Whereas President John Fitzgerald Ken-
nedy, in all his public utterances, exhorted
the people of this world to strive for the
common good with the best that is in each
of us; and
Whereas he was a man whose private
and public life was above reproach; who was
sincere and equitable, honest and honorable;
one to whom artifice and treachery were
unknown, who was a stranger to bigotry and
prejudice, an adviser of the indigent and
a friend of all, regardless of race, color, or
creed; and -
Whereas at Gettysburg 100 years ago, that
great and kindly man, Abraham Lincoln,
most eloquently spoke to the people a few
words which now in paraphrase, seem to ex-
press our thoughts about our deceased
President:
"It is for us, the living, rather, to bededi-
cated here to the unfinished work which
John Fitzgerald Kennedy who fought here
has thus far so nobly advanced. It is rather
for us to be here dedicated to the great task
remaining before us-that from this honored
dead President we take increased devotion
to that cause for which he gave the last full
measure of devotion-that we here highly
resolve that this man shall not have died in
vain;" and
Whereas we dedicate this meeting in mem-
ory of our compatriot, John Fitzgerald Ken-
nedy, whose name is written in letters of
gold upon the fleshy tablets, of our grateful
and appreciative hearts, and whose name is
deeply engraved in the pure white marble
of honest fame and whose name will be in-
scribed on the tablet of the immortals: Now,
therefore, be it
Resolved, That this council when it ad-
journs tonight, it do so in the name and on
behalf of the city of Binghamton and its
citizens, with deep and sincere regret and
in respect to the memory of John Fitzgerald
Kennedy, the late President of the United
States of America; and be it further
Resolved, That the clerk of the city of
Binghamton forward a copy of this resolu-
tion to Mrs. Jacqueline Kennedy, the widow
of John Fitzgerald Kennedy, and also that
a copy be forwarded to Hon. HOWARD W.
RoBIsoN, Congressman of the 33d District of
the State of New York, with instructions
that this resolution be made a part of the
CONGRESSIONAL RECORD; and that the clerk
of the city of Binghamton spread this reso-
lution upon the minutes of this council.
Dated: December 2, 1963.
LEG J. KELLEY,
President of Council.
JOHN I. BURNS,
Mayor of the City of Binghamton.
Appraises Federal Pay Bill
EXTENSION OF REMARKS
OF
HON. GEORGE M. WALLHAUSER
OF NEW JERSEY
IN THE HOUSE OF REPRESENTATIVES
Thursday, December 5, 1963
Mr. WALLHAUSER. Mr. Speaker, I
believe that the statements contained in
the letter by John W."Macy, Jr., Chair-
man, U.S. Civil Service Commission, to
the editor of the Washington Evening
Star under date of December 2, 1963, ex-
plain in great detail many of the reasons
that prompted the House Post Office and
Civil Service Committee to favorably act
upon H.R. 8986 and I would suggest to
my co ea- gues that they examine his
statement carefully because of the infor-
mation that it contains:
APPRAISES FEDERAL PAY BILL
I was surprised by your November 11 edi-
torial describing the Federal pay bill ap-
proved by the House Post Office and Civil
Service Committee as a bad bill-particularly
in view of your earlier editorial (Sept. 26,
1962) in favor of the concept of comparabil-
ity between Government and private indus-
try pay scales. The measure you oppose goes
far toward carrying forward this principle
of comparability which Congress. made a
matter of. public policy in enacting the Sal-
ary Reform Act of 1962.
I must question both the reasons and the
data you cite to support your view of H.R.
8988:
1. The cost of the legislation should not
automatically make it a bad bill; actually,
simple equity demands that the Government
fulfill its commitment to the comparability
principle on which it is founded.
2. The substantial raises scheduled to
take effect in January 1984, were provided
as the second phase of a gradual catchup
formula in the Salary Reform Act of 1962:
They actually average only 4.1 percent,
would benefit only those in the first 15 pay
grades, and would extend full comparability
only through grade 7 and only to 1961
(representing about a 3-year timelag).
3. Your reference to substantial fringe
benefits for certain jobs leaves the impres-
sion that these are greatly to the advantage
of Federal employees compared to those
found in the private sector. Studies we have
conducted show that this is not. the case.
Although Government is generally credited
with somewhat more liberal leave policies,
it does not appear to be as liberal in group
insurance policy and opportunities to ac-
quire extra income such as through profit
sharing, bonuses, stock options, etc. And
Federal employees tend to pay a higher share
of the cost of group insurance and retire-
ment benefits.
4. Under the principle of comparability,
pay increases are warranted all along the
line-not just in the - secondary levels
where you agree increases are justified-as
you will see explained below.
5. Your comparison of the lower average
pay rates of workers in private employment
with those of Federal employees is akin to
comparing apples with oranges and has no
validity for proof of your point. The aver-
age pay in the private sector' is dragged
down by the inclusion of a large proportion
of unskilled and industrial-type positions,
while the Federal service has fewer of these
and a greater proportion of professional and
high-skilled white-collar positions. As to the
Comparison of the average pay of employees
of. the State of Ohio and the Federal Govern
ment, I would point out that Ohio ranks in
the lower half among the 50 States in aver-
age pay rates for its employees. The in-
validity of both comparisons is demonstrated
by the Bureau of Labor Statistics surveys
discussed below.
6. Contrary to.your assertion, the Federal
employee is not better off than his opposite
number in private employment, except in
the two lowest grades, as the following facts
make clear:
The Salary Reform Act of 1982, in addi-
tion to establishing the current salary
schedules and the higherrates to be effective
in January 1964, also provided for an annual
review and a report by the President to Con-
gress as a means for achieving and maintain-
ing comparability. The basis for determin-
ing comparability is the annual Bureau of
Labor Statistics survey of clerical, adminis-
trative, and professional jobs in 80 different
metropolitan areas, covering 75 classes or
categories of jobs. In._reporting these sur-
veys, the Bureau of Labor Statistics provides
a national average figure for each of the
different levels of responsibility in each job
category, and these averages serve as the
basis for determining Federal salary sched-
ules which would be comparable with private
enterprise pay levels. It deserves emphasis
that the rates reported. by BLS, being na-
tional average. rates, are lower than those
paid by the highest paying half of private
enterprise.
In its report on legislation that became
the Salary Reform Act of 1962, the Senate
Post Office and Civil Service Committee
noted that time did not permit adequate
development of needed information on ex-
ecutive pay, and it specifically requested the
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CONGRESSIONAL RECORD - APPENDIX December 5
President "to recommend for consideration
In the next session of Congress appropriate
increases in Federal executive salaries at all
levels." In response to the committee re-
quests, the President asked his Advisory
Panel on Federal Salary Systeins (the Ran-
da)l committee) to study the question of
executive pay and to report Its findings and
recommendations. Its subsequent recom-
mendations for substantial adjustments for
key positions In the executive, legislative,
and judicial branches are well known to you.
It was this review process-the BLS sur-
vey, the Randall committee report, the
President's recommendations for pay adjust-
ments, and the House committee's consid-
eration of the data and proposals-that
produced H.R. 8986.
Our own careful analysis of HR. 8988 Is
that (I) it contains important reform provi-
sions which are clearly consistent with the
principles of the Federal Salary Reform Act
of 1962; (2) It reaffirms congressional sup-
port for the principle that Government pay
and pay for like jobs in the private economy
should be kept at comparable levels by pe-
riodic review and appropriate statutory ad-
justment; and (3) It achieves comparability
in the lower career levels and moves In
the direction of attaining comparability In
the upper career levels. The Increase in the
rates for the lower career levels does not de-
part from the comparability principle but
takes into account the 1963 BLS survey data
released last month; In the Intermediate
levels, comparability on a 1662 basis would be
achieved; and, in the highest career levels,
the rates are roughly comparable with the
1961 BLS data.
The bill falls below the executive branch
scale supported by the administration, but
it rationalizes and simplifies the executive
salary levels in all three branches of Govern-
ment on a basis which provides badly needed
relief for top positions In the executive
branch--although still considerably below
the salaries recommended by the Randall
Panel.
As the House committee report on the
measure states. this bill "represents the first
-and undoubtedly the conclusive-test as
to whether Congress intends to abide by its
commitment to the comparability principle
or discard it within a year after Its adoption.
The bill Is predicated upon the conviction
that Congress will not abdicate its respon-
sibility but, instead, will meet Its obliga-
tion to Federal employees and the public by
maintaining and strengthening the com-
parability principle."
It Is because of these Important and over-
riding considerations that the administra-
tion has expressed the hope, by letter of No-
vember 9 to the chairman of the House com-
mittee, that It will be possible for the House
to consider H.R. 8986 in the near future in
order to permit time for final congressional
action on pay legislation this year. In view
of the foregoing facts and your previously
stated position in favor of comparability.
I would hope that you would reconsider your
editorial appraisal of the bill.
JOHN W. MAcr, Jr..
Chairman. U.S. Civil Service Commission.
EXTENSION OF REMARKS
Or
HON. JAMES G. FULTON
OF PENNSYLVANIA
IN THE HOUSE OF REPRESENTATIVES
Thursday, December 5. 1963
Mr. FULTON of Pennsylvania. Mr.
Speaker, I am placing in the CONGRES-
SIGNAL RECORD the excellent editorial of
my longtime friend, John J, Edwards,
owner of the West Side News, 229 Wyo-
ming Avenue, Post Office Box 1042.
Kingston, Pa., concerning our beloved
late President John F. Kennedy.
The editorial follows:
One of the most distressing aspects of the
untlme:y death of President John F. Ken-
nedy is the fact that no man on earth had
more good to live for than he. His life was
dedicated to that which Ingood and his every
effort in public life seemed to be aimed at
Improvement in the welfare of his fellow
hwnan beings, In addition, his personal life
promised to go on being an exceptionally
happy one.
President Kennedy's personal characteris-
tics were contagious. His vigor, his en-
thusiasm, his optimism, and his good humor
all seemed to have their Influence upon his
fellow citizens, and certainly they were re-
sponsible for his having become so endeared
to his fellow citizens.
Always with President Kennedy It was to
smile and to keep busy, busy, busy. He had
so match to do and so little time that he
couldn't even be bothered with with a bat
and topcoat. Be wanted his fellow Ameri-
cans to be busy also and to be physically fit
through exercise. He was the President who
had.a poet. the late Robert Frost, as a speaker
at his Inauguration and he and Mrs. Kennedy
were active sponsors of music and the arts.
So. his personality and his leadership have
left what we hope will prove to be Indelible
marks on the face of the Nation. and we hope
that the high principles for which he stood
so firmly will be maintained in our Govern-
ment and national life.
EXTENSION OF REMARKS
or
HON. EMANUEL CELLEH.
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Thursday, December 5, 1963
Mr. CELLER. Mr. Speaker, I am
pleased to place in the CONGRESSIONAL
RECORD the address delivered by J. Edgar
Hoover. Director, Federal Bureau of In-
vestigation, when he received the
Brotherhood Award of the Brotherhood
of the Washington Hebrew Congregation,
Washington, D.C., on Wednesday, De-
cember 4, 1983. Mr. Hoover's address
follows:
FAITH IN FREEDOM
This is a great moment to my life. To be
recognized In this manner by the Brother-
hood of the Washington Hebrew Congrega-
tion is a distinction which I shall cherish
always.
I are especially honored by the presence
of so many close friends. including the die-
tingulshed civic leaders whom you have
selected as recetptents of other awards.
How have these men come to positions of
prominence in our community? It is be-
cause they have dedicated themselves to
servlre-they have eagerly accepted the re-
sponsibilities of good citizenship. and they
are willing to be judged upon their records
of positive contributions to the cause of
decency and of justice.
Decency and justice-these are the high
aims of this Brotherhood. just as they always
have been an Integral part of the Hebrew
religion which has given mankind the Ten
Commandments and the concept of a mono-
theistic God. For these sacred gifts, all
true religious of the Western World are eter-
nally Indebted to you.
Americans of the Hebrew faith are doubly
blessed. The rich, cultural inheritance that
has been handed down since early Biblical
times to generation after generation of Jews
is combined, In our country. with a proud
heritage of freedom. It is a heritage that
was won by the sweat, the blood and the sac-
rifices of men and women on many nation-
alities and many religious creeds.
Devotion to God; belief in the inherent
dignity of mankind; faith in man's ability.
through divine providence, to guide his own
destiny-these are the strong ties that hold
together our United States, the greases';
brotherhood of freedom in the history if
the world.
No one has a deeper understanding of the
true meaning of freedom than the members
of the Hebrew faith, for no peoples hale
suffered more relentless persecution and in-
justice at the hands of tyranny through the
ages.
Today the fires of anti-Semitism continue
to burn with fierce intensity in many areas
of the world. This is particularly true be-
hind the Iron Curtain where communism,
the bitter enemy of Judaism and of all other
religions of the world, seeks to destroy your
priceless heritage and the right of your peo-
pie to live according to the tenets of God.
During the past generation, the conscience
of decent men everywhere has been shocked
by the continuing vicious atrocities that
have been committed against Jews in the
Soviet Union. Rabbis have been arrested
and imprisoned or executed; synagogues
have been desecrated; the traditional Jewish
school system has been liquidated: and He-
brew literature, language and customs have
been suppressed by the Russian Commr_t-
nists.
Despite Communist claims of improved
conditions for Jews under the Khrushchev
regime, the opposite actually is true. Ad-
ditional forms of suppression have been in-
troduced.
The observance of Passover no longer can
be held according to tradition; sacred He-
brew burial customs have been obstructed;
and a statewide program has been instituted
to make Jews the scapegoats for criminal
sets affecting the Russian economy. Jews
are clearly Identified by religion on the in-
ternal passport which all Soviet citizens
must carry.
Last October, the outrageous extent of this
program was disclosed by the Moscow news-
paper Izvestia when it announced the ar-
rests of several persons Involved in an
alleged criminal conspiracy. The leaders of
this gang have "Jewish names." Izvestia told
its readers in demanding a "show trial" and
"death sentences,"
Vicious outbursts of religious hatred such
as this caused one American newspaper re-
cently to warn Its readers, "For reasons best
known to themselves the Soviet leaders d s-
criminate heavily against Jews. The evi-
dence is overwhelming and incontrovertible
and renewed almost daily by the Russians
themselves."
In a joint statement released last summer,
three American Jewish organizations re-
nounced the Soviet press for conveying "a
viciously negative Image of the Jews," and
indignantly proclaimed, "Soviet Jews are de-
prived by official policy of religious and cul-
tural rights ? ? ? and are the victims of
discrimination."
Communism and religion-like commu-
nism and freedom-can never coexist, for
Marxism. Is unalterably opposed to all forms
of religious beliefs. Lenin acknowledged this
fact more than 50 years ago when he exhorted
his followers, "We must combat religior-
this Is the A B C of all materialism, and
consequently of Marxism." Then he de-
clared. "The Marxist must be ? ? * an enemy
of religion."
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1963 CONGRESSIONAL RECORD - HOUSE
Carol Tyler, his $8,300-a-year secretary when
he was employed by the Senate, lived there.
Miss Tyler quit at the same time that Baker
resigned in the midst of a controversy over
his outside business activities.
There is no evidence that the German
woman was any more than a mere friendly
acquaintance of Baker and Miss Tyler.
KIN AMONG REDS
The German woman was born and reared
in Kleinitz, East Germany, and still has rela-
tives on the other side of the Iron Curtain.
The possibility that her activity might be
connected with espionage was of some con-
cern to security investigators because of the
high rank of her male companions.
The Investigations by the FBI are reported
to have dispelled the possibility that the
woman had any political motive in her
activities. She and her husband are citizens
of West Germany.
There are reports here that they have been
divorced since returning to Germany, but
this could not be confirmed.
Those acquainted with the woman class
her as "stunning, and in general appearance
comparable to movie actress Elizabeth
Taylor.
ANGRY OVER OUSTER
When she first came to the United States,
she was reported to have told various men
she was single, and later said she was di-
vorced. Only in the last few months before
she was called back to Germany did she tell
associates that she was married, and then
she said she was contemplating a divorce.
She is reported to have been furious be-
cause her important friends did not block
her expulsion.
Neighbors. say she told them she was a
model, to account for her unusual hours.
She would leave at odd hours during the
day and night, the neighbors said, her hus-
band remaining at home.
MISLABELING OF IMPORTED
MOHAIR BLENDS
(Mr. FISHER asked and was given
permission to extend his remarks at this
point in the RECORD and to include ex-
traneous matter.)
Mr. FISHER. Mr. Speaker, It, has
come to my attention that quantities of
knitted garments are being imported
Into this country in violation of our
labeling laws, contrary to the public in-
terest.
The apparel I refer to relates to
sweaters manufactured .in Italy, which
purports to be blends of stated mohair
content, and other fibers. In July of this
year 1,100,000 sweaters were admitted
from Italy, valued at $5 milion. In order
to promote the sale of these garments the
labels have grossly overstated the mo-
hair content, and other fiber components
in the products. In this way American
women are being swindled because they
are led to believe the garments contain
more mohair than is the case. This con-
stitutes a fraud and a deception.
This is inded a hoax, and the effect of
it is to downgrade the mohair fiber with
this misrepresentation. This constitutes
a form of deception which may very well
cause the buying public to get a false im-
pression of the mohair fiber. Mohair is a
specialty fiber. Its reputation for resil-
iency and durability is well known. The
growers have spent years improving the
product, and this has added to its de-
mand, both at home and abroad. But
the importation of these sweaters,
upon the consumer's acceptance and
preference for the mohair fiber.
It is not possible at this time to state
precisely how widespread is this repre-
hensible practice. -I have been able to
confirm the following, however: Four-
teen sweaters bought at retail and
selected at random from 9 different
well-known retailers in this country were
recently tested for fiber content by the
United States Testing Co., an inde-
pendent and reputable commercial test-
ing company. In each and every one of
these tests it was found that the label
on the garment overstated the mohair
content, and in every instance except
one, very substantially.
In not a single instance did the label of
any sweater tested truthfully state its
fiber components. I am not prepared
to say that no mohair-blend garment im-
ported from Italy is honestly labeled.
But I do know that among those investi-
gated not in a single instance has one
proven to be truthful.
It is also important to note that these
garments that were tested were selected
at random. They were not purchased
from any shady or "fly-by-night" re-
tailer. They came from the best and
most reputable retail stores, including R.
H. Macy's, Sears, Roebuck & Co., Lern-
er's, S. H. Kress, Bloomingdales, Bon-
'wit Teller, Stern's, Korvette, and Abra-
ham & Straus. Sweaters purchased at
other stores are now being tested.
All of these garments, according to
these labels, are of Italian origin. They
are said to be hand-knitted. I am told
they are produced in homes and under
conditions ordinarily prohibited to
American manufacturers. The wages
paid to the workers are a mere pittance
by comparison with American wage rates.
Retailers who sell these garments
usually do a profitable business. They
buy them at low prices, which reflect the
low wages paid, and then proceed to sell
them under the misleading guise of false
labels. And despite this fact the sales
are frequently promoted under the claim
of superior styling, whereas most or all
of them are produced.by Italians work-
ing on farms and in city slums.
I want to emphasize that this fraud is
felt not only by the consumers but also
by the producers of mohair in this coun-
try who take great and understandable
pride in the superior quality of their
product. This sort of practice, if con-
tinued and expanded, will do irreparable
damage to the market that has been ac-
quired through the years for genuine
mohair products. In fact, our domestic
producers of comparable garments have
seen their own employment decline dur-
ing the past year.
Mr. Speaker, this calls for prompt and
positive action. I am sending letters to
the Chairman of the Federal Trade Com-
mission, which administers the Wool
Labeling Act, and to the Commissioner
of Customs, urging them to Initiate
prompt action to remedy this problem
and see to it that it is not permitted to
Our entire industry is affected-the
growers, the yarn spinners, and the knit-
ted outerwear industry, and all others
(Mr. UDALL asked and was given per-
mission' to address the House for 1
minute, to revise and extend his remarks,
and to include extraneous matter.)
Mr. UDALL. Mr. Speaker, the CON-
GRESSIONAL RECORD for Tuesday of last
week contains remarks of Senator
LAUSCHE, of Ohio, on the subject of Fed-
eral pay legislation. The Senator noted,
first, what he described as the "shock-
ing" fact that there are twice as many
Federal employees as State employees
in his State, and, secondly, that Federal
employees in Ohio and elsewhere receive
higher weekly earnings than State em-
ployees. He suggested that these were
reasons for voting down any Federal pay
proposals and described appeals for pay
increases as "balderdash."
Mr. Speaker, I should like to make
these comments. First, looking at the
charts the Senator placed in the RECORD,
I could not help noticing that there are
only four States in the Union which have
more Federal employees than Ohio. It
happens that the Senator's State benefits
greatly from a number of sizable Fed-
eral activities. In fact, Ohio has nearly
six times as many Federal employees as
my State of Arizona. However, I can
assure the Senator that this is not be-
cause Arizona looks unfavorably upon
Federal programs. On the contrary, we
welcome Federal employees and payrolls
in our State. We would like more. And
if there is any sentiment in the Senator's
State to reduce the number of Federal
installations there, I can only say that
the people of my State will gladly make
room for them.
However, I am certain the Senator did
not mean that he wants Federal instal-
lations taken out of Ohio or that he
wants thousands of Federal workers
there laid off. His point was that there
should be no increase of any kind in any
Federal salaries because the average sal-
ary paid Federal employees exceeds the
average salary paid State employees in
Ohio and elsewhere.
Mr. Speaker, this would be like my
saying that the State and local govern-
ments of this country should cease all
hiring because out of 91/2 million Gov-
ernment employees in this country, a
"disproprtionate" 7 million work for
State and local governments. Or I might
say that no State or local worker should
be increased in salary until State and
local employment drops from the present
37 per 1,000 population to the 13 per
1,000 ratio enjoyed by the Federal Gov-
ernment.
Mr. Speaker, I submit that this kind
of generalized objection to salary legis-
lation Is meaningless. I do not know
how. many scientists, engineers and top
administrators-capable of managing
multibillion-dollar programs-are em-
ployed In Ohio, but I know that the Fed-
eral payroll has to carry thousands upon
thousands of the most highly trained
has anything like the space program,
anything like the Department of De-
labeled falsely with respect to their mo- engaged in the production and processing fense. To take an average of Federal
hair content, has serious adverse effect of mohai p t should be equal
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CONGRESSIONAL RE-CORD - HO1 JSE October 28
to or less than an average of State sal-
aries in Ohio or Arizona is to assume
that the two groups of employees are
identical in nature and have identical
jobs to perform. I do not see how Mem-
bers of this Congress can make such a
preposterous assumption.
To my mind, Mr. Speaker, there is no
substitute for hard, painstaking study of
specific facts. If one makes such a study
of the Federal pay structure, as the emi-
nent businessmen on the Randall Com-
mission did for both Presidents Eisen-
hower and Kennedy, there can be no
doubt about the need for meaningful
increases in the Federal salary struc-
ture, particularly in the top executive
and judicial categories, the Cabinet and
the Congress.
For example, studies show that In the
State of Ohio there are at least 17 public
officials who are paid more than Senator
LAUSCHE, surely one of the most impor-
tant officials serving the people of that
State. In fact, State salaries in Ohio
range as high as $36,000, more than Is
proposed for Senators and Congressmen
in legislation now before the Congress.
I take no exception to this. I believe It
is altogether proper that the State of
Ohio pay such salaries, for no organiza-
tion can hope to attract top talent with-
out competitive salaries. However, I be-
lieve an examination of specific salaries
in the State of Ohio may dispel any no-
tions that salaries paid executives there
are lower than salaries paid executives
In the Federal Government. In fact,
precisely the opposite is the case.
To cite one example, the president of
Ohio State University receives a salary
of $36,000, while the U.S. Commissioner
of Education, who administers a multi-
billion-dollar program affecting every
school district, most colleges and every
taxpayer in the United States, receives
a salary of $20,000.
In addition to the president, there are
three other executives of Ohio State
University whose salaries exceed the
highest executives in the Federal Gov-
ernment. One Is the vice president for
business and finance, who makes $26,-
976. I am sure his responsibilities are
heavy, but I doubt that they are heavier
than those of the Director of the Budget
of the United States, who must super-
vise expenditures of $100 billion a year
at a salary of $22,500.
Another is vice president for instruc-
tion, paid $26,976, an important job but
surely no more burdensome than that
of the Administrator of the National
Aeronautics and Space Administration,
who makes $22,500.
Then there is the dean of the medical
school, who makes $26,952. I have no
quarrel with this salary, but surely this
position does not exceed in responsibility
that of the Medical Director of the Vet-
erans' Administration, who manages
over 150 hospitals and medical facilities
from coast to coast at a salary of $21,-
050.
I am sure the president of Bowling
Green State College in Ohio has a big
job to do, but I seriously doubt that It is
bigger or more vital than that of the
Director of the Central Intelligence
Agency, who makes $22,500, compared
There are more. The superintendent
of schools in Cincinnati. Ohio, receives
a salary of $30,000 a year. The city
manager of that city also makes $30,-
000 a year. The city manager of Day-
ton receives $26,643 a year. These jobs
require top talent, but so does that of
Chairman of the Atomic Energy Com-
mission, a job that pays only $22,500.
And there are still more. The presi-
dents of three other State universities,
the superintendents of schools to Akron
and Cleveland, the mayor of Cleveland,
and the city manager of Toledo all re-
ceive salaries exceeding by $3,000 those
of the Secretaries of the Army, Navy
and Air Force.
Mr. Speaker, the argument is often
made that Government service is a privi-
lege and an honor, that we should not
expect Government officials to receive
the salaries they might receive in pri-
vate industry. However, surely it is an
honor to serve the State of Ohio just as
It is an honor to serve the Federal Gov-
ernment. From the facts presented, I
would say there is more then ample rea-
son to increase Federal salaries at least
to the level enjoyed in that State for
comparable talent an mumbo-jumbo about nonprofit opera-
House for over a week how Mr. Galarzi, tions, and about patronage refunds not
a man who has confessed judgment as a being income. And if a co-op happens
defendant in a libel suit, has been work-
ing for the Education and Labor Corn -
mittee as an investigator. Now his ap-
pointment has been legitimatized in s
rather ex post facto sort of way by this
announcement from the chairman c t
the committee.
So it is now official that Ernesto Go -
larza is on the payroll and that the tax -
payers have been paying him since
October 1.
What was Ernesto Galarza doing th s
afternoon to earn his reported $19,000
per year? I have been here on the floc r
of the House listening to the debate o a
the bill to extend Public Law 78. Never -
theless I could, if the House rules per -
mitted It, tell you where Ernesto was th s
afternoon. The rules do not prohibit ire
from saying that he was not observir g
nor working on any matter over which
the Education and Labor Committee had
jurisdiction.
So our new $19,000-per-year consu -
twit, who is paid by the taxpayer, h; s
been guilty of playing "hockey" in h s
first month on the job.
Mr. MICHEL. Mr. Speaker, with col -
siderable uneasiness among many Men -
bers of this House we have passed ti c
tax revision bill. Many of my colleagues.
I aln sure, doubt the wisdom of cutth g
taxes without cast iron assurance that
Federal expenditures also will be ct t.
The drafters of the legislation, of tour: e,
also recognized this incongruity or they
would not have included various pro-
visions to close loopholes In the tax lairs
so that the tax cut, to some exter t,
would be balanced by revenue fron
sources that have escaped taxation, rr
their full share of taxation, In the pa; t.
I mention these aspects of the bill b!-
cause they have bearing on what I wa it
to discuss here today: namely, a great
big gaping loophole which has not ben
closed off. This is a loophole in t le
tax laws that is costing the Nation m ]-
lions of dollars a year. It Is a looph(le
than for some reason which escapes n e.
we appear to be afraid to discuss alid
afraid to do anything about. I refer to
the rural electric cooperatives.
In his 1961 tax message President
Kennedy called the Congress attenti )n
to the tax treatment of cooperatives In
general. and he noted that "substant al
income" from these cooperatives Is r of
being taxed. He recommended that tic
laws be clarified so that all earnings f re
taxable to either the cooperatives or
their patrons.
But then, without any explanation, he
stated that the exemption of rural el{ c-
tr is cooperatives should be continu id.
And, as we all know, when the Reverue
Act of 1962 was enacted, rural elect -ic
cooperatives were excluded from the
provisions adopted to apply to coopei a-
tlves.
Now, Mr. Speaker, I know that at y-
time the subjectof taxing rural electric
to have some profits stashed away-
well, that is not profit, it is earned sur-
plus, or it is reserves, or required operat-
ing capital-never profits.
And there is another odd inconsistency
about these arguments against taxing
rural electric cooperatives. They say it
will bring hardship to the farmer. In
other words, they will use the farmer's
name in this instance, but when it comes
to justifying big Federal loans, then the
farmer is forgotten and they argue that
the co-ops have to take on industry,
commerce and other nonfarm loads in
order to keep their rates down.
Mr. Speaker, there is only one stand-
ard we can go by in deciding the tax
status of rural electric cooperatives--do
they make a profit on their operations
or are they truly non-profit? If they
do make a profit, then by every standard
of fairness and equity, they should be
taxed just as everyone else in this coun-
try is taxed when he makes a profit. I
propose today to present some facts
which indicate to me that there are ood
reasons for believing that co-ops make
substantial profits.
I have evidence that indicates to me
that co-ops are making a profit on heir
operations, and furthermore, that they
are using money derived from their priv-
ileged position of being able to get 2 per-
cent Federal money to invest in securi-
ties which pay a much higher interest
rate. I contend this is immoral, ille-
gal, and the co-ops are perpetrating a
fraud on the people of the United States.
During the hearings this year I asked
the Administrator to provide for us the
amount of the surplus funds of the rural
electric cooperatives. He provided the
committee with some figures which
added up to the sum of $589 million.
However, I am reasonably convinced that
this figure does not even begin to reflect
the true situation and that if the Nation
is ever able to get at what is really the
net surplus worth of the rural electric
cooperatives, there will be an outcry all
over the land. I contend that coopera-
tives have sufficiently fattened off the 2
percent Federal cow so that they could
resort to non-Federal financing for their
future operations without the slightest
hardship to any co-op member.
I might say that this is a problem
which has concerned us on the Appro-
priations Committee for some years and
we have been endeavoring during the
appropriations hearings to find out from
the REA just what is the financial con-
dition of the rural electric cooperatives.
Every year they come in and ask us for
increasingly large amounts of money
through the Rural Electrification. Ad-
ministration. Every year we continue
to hear complaints that the co-ops are
in reality in sound financial health and
perfectly capable of financing their ex-
pansion needs outside of the Federal
Government's subsidized loans.
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 .vw ; es after October 1, the
steel industry will be, earning
7 to 9 per cent of net worth
after taxes if the ra q
tions is around 70 a den 10
to 12 per cent if the operating
rate is at 80 per cent; and 13
to 15 per cent if the operating
rate is at 90 per cent.
;r P
re
"The steel industry, in short,
can look forward to good
profits without an increase in
prices," Mr. Kennedy asserted.
He argued, too, that the
rilo numllu, Nn1U {JC11aUv.
Thurmond, Democrat of South
Carolina, proved the need for
livv i ,
tagon information policies.
ident of Ford to manage the e low to muermeaiate yreiu
second largest business enter- given for the latest blast was
prise in the country and I the same as that which the
cterize No.
gdWT* l i gesday.
Q D1~~~4e3 fl~ i oit
fully if I had shifted respon-
C
as
at Hear
ng
I intermediate yield and the sec-
assume this responsibility. I do
The two men clashed as the not believe I can build esprit; and, on Monday, of low kilo-
mittee heard Mr. McNamara members of the Defense De-
answer for the second day partment if I attempt to shift
Senator Thurmond's charge responsibility to them which is
that the Pentagon is system- properly mine."
atically "muzzling" anti-Com-
munist military speakers.
steel industry would be in a I The hearing ended at noon Senator Thurmond contended
better moral position for a col- and Committee Chairman Rus- both yesterday and today that
-_ J lective bargaining negotiations sell, Democrat of Georgia, said,there was a "pattern" of edit-
due next spring if it does not he would try to reassemble the ing out strongly anti-Commu-
raise prices, group on Monday to decide I nist statements, Mr. McNamara
"If the industry were now whether senator Thurmond denied there was any tendency
Ito forego a price increase," lie , will get the investigation he to talk "soft on communism"
said, "it would enter collective !wants. and insisted that he would
committee a list of the men in
the Pentagon's speech review
office-a retired colonel, two
other civilians and nine mili-
tary officers-but he balked
when Senator Thurmond said
it was "important to the work
bargaining negotiations next l Mr. McNamara gave the ! shoulder the blame for any! See
spring with a record of 31/2
years of price stability.
rg1 "It would clearly then be the
1t turn of 'the labor representa-
tives to limit wage demands to
,via level consistent with price
;o stability."
11 The President noted that
,t "steel is a bellweather" in the
o 1national economy as well as a
h major element in industrial
I costs. He said a rise in steel
prices would force price in-
y creases in many industries and
- invite them in others.
f "A steel price increase in the
months ahead," he warned,
"could shatter the price stability
which the country - has now
enjpyed for some time."
He added that Secretary of
Defense McNamara estimates
See STEEL, Page A-6
Eisenhower Tried
To Avoid Zones
Rule in Germany
Former President . Eisen-
week with Henry R. Luce, ed-
itor-in-chief of Life Magazine,
recounted his efforts to avoid
separate occupational zones in
Germany.
In 1944 Gen. Eisenhower
flew to Washington where he
found President Roosevelt in
oed with influenza.
"This is my pet," he told the
President. "Let's not have
separate occupation zones in
Germany. Instead, let's have
ioint Allied administration of
,he whole country."
"Impossible," Mr. Roosevelt
replied.. "I'm already commit-
ted.
Mr. Luce's full account of
the discussion with Mr. Eisen-
lower appears on Page A-17.
equivalent of a thousand tons
of TNT.
Ambassador Calls
Ceylon was one of the two
dozen countries represented at
Balgrade. Its new envoy, Am-
bassador. William Gopallawa,
called on Mr. Kennedy this
morning. In their exchange of
remarks, Mr. Gopallawa said
his nation realizes the Presi-
dent's tasks in such critical
times are great and difficult,
Senator Thurpond also clashed
today on the merits of the film
"Operation Abolition."
Senator Thurmond contended
See PENTAGON, Page A-6
BREAKS FOR COMMERCIALS
Over-Par Army Joins
In Poor Berlin Show
By LYNN HEINZERLING
Associated Press Staff Writer
BERLIN, Sept. 7.-The Fried-
richstrasse crossing between
East and West Berlin has been
manned by about a squad of
GIs in recent days. Today the
television cameras appeared. So
did two colonels, one lieutenant
looking recoilless rifle and the
machine guns. Especially since
their line on Berlin has been
that the United States as an
imperialist aggressor has .been
trying to brew up trouble.
It was whispered around that
Mr. Paar would not have been
unhappy if the. Communists
colonel, a major, a captain, two ! had sent one of their water-
lieutenants and about 50 en-!spouting armored cars or a
listed men, some of them in loudspeaker van to liven up the
bulletproof vests, show. But it didn't happen. A
one with the new 106 recoilless
rifle mounted on it.
The Jack Paar television
staff had four television
cameras trained on the spot,
one on a 12-foot, platform, one
on a hydraulic lift used to
clean street lamps and two on
the ground.
One of the jeeps with a
machine gun was run right up
to the white line marking the
border. Mr. Patr leaned on the
jeep part of the time while his
show was filmed.
Just across the line, the
East Berlin television station
also was hard at work. Its
cameramen apparently could
not resist filming all the United
States brass plus the wicked-
l
h
i
Communist loudspeaker truck
remained discreetly in the
background.
An American helicopter flew
overhead, one or two more
jeeps with machine guns ap-
peared and two busloads of
American soldiers passed
through the border for a sight-
seeing tour of East Berlin.
Mr. Paar interviewed two
Army officers. Occasionally he
would break off with "and now
a word from New York." This
apparently was the break for
the commercials.
Col. John L. Dean, command-
er of the 2nd Battle Group, 6th
Infantry Division, explained
that the troops patrolling the
border were being changed to-
day and that accounted for the
large number present.
NUCLEAR, Page A-6
Red Envoy Flies
To'Urgent',Talks
BONN, Germany, Sept. 7
(AP).-Andrei A. Smirnov, So-
viet Ambassador to West Ger-
many, left suddenly early to-
day for what his Embassy said
were "urgent consultations" in
Moscow.
The Embassy said he was
flying to the Soviet capital via
East Berlin.
The envoy's surprise depar-
ture heightened speculation that
the East Germans backed by
the Kremlin, are planning new
trouble over Berlin.
SCHOOL LUNCHES
CAN BE GOOD
SANDWICHES for school lunch
boxes should not be kept in the
freezer more than two weeks, says
Star Food Editor Violet Faulkner,
whose article on school lunch ideas
includes a tempting selection of
snack and sandwich filling recipes.
See Page D-1.
Guide for Readers
Amuse'ts D-12-13 Features ____C-5
Business ___B-6-71 Food ------ D-1-7
Classified C-5-11 i Lost, Found ___A-3
Comics __D-15-17 Obituary ---- B-4
Crossword --D- 1 6 Society-
Dining and Home ___C-1-3
Dancing-__D-13
Editorial ____A-16
Sports ---- B-8-11
TV-Radio ___D-14
Edit'IArticles A- 171 Weather B-2
Have The Star Delivered to
Your Home Daily and Sunday
Dial Lincoln 3-5000
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 segregated school system. rence Association. presented and spring. Pulled Out Children
Rr~a mem- . Other Schools Int-grated Angry white mothers. pro-
Galveston Integrates Gce~n. Eisenhower with
C3al eston, 265 miieg`~ (PYR, 12 e~tt7d r+Ytf"lt~Mf-1Si~'p'' ~~ ~ 3 ?Q 0040'OnIIYS called forced i 4*
McDonogh 11 shortly before n egration, pulled their chit-
Dallas, also desegregated kin-:at Gettysburg. dren out of both schools last
dergarten and first grades The St. Lawrence Seaway 10 o'clock. More than 100
without incident when 37 Pioneers are made up of promi- white children start!d classes tali. At McDonogh 19, where
o
Negroes began classes in three Went Americans who, prior to' there an hour' earli? r. three Negro girls went re
previously white schools. 1954. advocated and worked for White children showed up in classes, there was a complete
Integration of educational construction of the Seaway. sizable numbers at Lusher, ; t)oycott by whites. `
At Frantz, a handful of
white children remained with't
the lone Negro child.
THE FEDERAL SPOTLIGHT For the first several were.-'
of desegregation last fall, scare-, r
gationists taunted the few white
669 Top-So i parents who escorted their chit-, t
`! t
Jobs Arowd App dean to Frantz. Then police:
sealed off the area and the, R
demonstrations became spo sr
By House Unit; Senators OK 714 'odic. to
Asked Further Boycott
Earlier this week, the strong- e
By JOSEPH YOUNG the specified minimum of the legislative employes i.nder cer- ly-segregationist Cit,zens Coun-!
Star staff writer ! newly created jobs. ; lain conditions. cil called for a continuance of s
The House Civil Service; 3. Another 249 scientific and! The Senate grou)'s mem- the boycott. Several of the!b
Committee today approved 669' research jobs under Public Law;bers are in accord with the mothers who withdrew their t
new super-grade and other 313 which pay up to $19.000 a ;disability retirement provision, `children were listed among
high-salaried Government jobs year were also approved by the but they want to discuss more; signers of a declaration of:v
paying up to $19,000 a year. Senate group. fully the earlier cor gressional priciples of a "Committee of t
The Senate Civil Service", These jobs are specially ear- retirement feature. 'he House Mothers for Their Childret. t
Committee had approved 714. marked for specific departalso added a provisio 1 exempt- appearing in today's Times- 5
new jobs yesterday. ments and agencies as follows: )n? employes of tht Picayune. -
Defense Department includ- 'Lure Stabilization Committee, The advertisement said that
The administration had; 'from having to pay oack con-
sought 945 additional positions; rng Army. Navy and Air Force'tribuGlons for past Federal Federal persistence in integral- i
in the top-salary grades in its and Office of Secretary of service toward their etirement; mg schools would make it neces-;
effort to attract and retain; Defense', 75: National Aero sary to operate private schools.
the ablest people for adminis- benefits. This is ant Cher fan
nautics and Space Administra-iture that some senators want Some observers, who asked `;
discuss more. fully not to be identified, said they
trative, professional, scientific. i tion, 135; National Security
Ito
engineering and research jobs Agency, 10; Federal Aviation * * * felt the federal Govertuneni,'s:
in Government. Agency,10: Interior. 3: Agrlcui-! , move to bar neighboring St.:
The Senate committee's bill ture, 3; Health. Education and SLCCESSFU*-Th s National Bernard Parish schools fro n
provides: Welfare, 3; Commerce, 3: Post League of Postmasters has had accepting children who boycott
1. A total of 419 additional ; Office Department. 3; and Li- a dramatic rise in It fortunes New Orleans schools was( ill-
super-grade jobs (grades 16 to brary of Congress. 4. during the past year or so. Its 'timed_
IA paying $15,255 to $18,500 a, The majority of the new, membership -has Inc eased by The Justice Department tour!
year'. Of this number. 319 will, super-grade and Public Law 313 4,000 and the or anization action was filed Tuesday. It
he available to the Civil Service; jobs would go to present em- looks for more gain a In the seeks to prohibit the segregated
Commission for distribution to ploves via promotions. months ahead. St. Bernard system from ac-
the various departments and * * * * The league just completed a cepting transfers from Orlea:;s
agencies as it sees fit. The re- GAO---In addition to all of, very successful coot ention in Parish as long as St. Bernard
maining 100 will be at the dis- these new positions, the Senate; Philadelphia. with 1 000 post- schools remain segregated.
posal of the.President, who will Civil Service Committee ap-; masters attending. Tommy
determine which departments proved 14 more super-grade Vaughn of Paris, Tenn., was
and agencies will get the jobs. Jobs for the General Accounting elected president, a d Ralph f s ii, cif
2. In addition, another 48. Office, which i.i a legislative Bennett of Amesvi le, Ohio,
super-grade jobs were especially: branch of the Congress. ; was elected executive vice
earmarked for cetain depart-. * * * * , president. Bun Raley, who has;
ments and agencies. of this; [jE I IRE y2$ y'T'--_ In another done an excellent jf b for the:
'
number, 28 will go to the De-;action. the Senate Civil Service' league the past year, was reap-
tense Department (to be dis-:Committee decided to have the;pointed legislative r!presenta-!
tributed among Army, Navy Senate go to conference with; tive. .
and Air Force Departments, !the House on the bill to,
* * * * m
and office of Secretary of De-;strengthen the civil service re-! ARMY AWARDS - Army's
fence), 12 to the National Se-;tirement fund by increasing' fifth annual Secretary of the;
eurity Agency and six to the. the interest rate it receives on; Army awards to o itstandingi
Immigration and Naturaliza- its Treasury security invest-; civilian employes wi I be held
tion Service. ments. from 12:15 to 1:15 p.m. Tues-;
It should be stressed that Both the House and Senate day in the center ccurt of the'
these earmarked positions do have already approved bills to Pentagon. r ['l
not preclude the Civil Service.this effect. However, the House * * a * -
Commission from giving the" amended the bill to provide; RELIGIOUS HOLIDAYS -
Defense Department, NSA and, liberalized disability retire-;Post Office Department has in-
INS additional super-grades ment standards for returning; structed post office: to allow
from among the 419 generally such retie es to the retirement, Jewish employes the use of an-;
designated new super-grade, rolls after they have been re-,nual leave if requested in order
positions. It merely makes sure moved. It also provided for; to observe the forthcoming. E ! 1 i
that Defense and the two other earlier retirement benefits foriRosh Hashonoh and Yom Kip- }
agencies are assured at least members of Congress and ? pur holidays.
M
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 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0
CONGRESSIONAL RECORD - HOUSE 18327
stigma of a less-than-;honorable discharge
by giving them the opportunity to earn
honorable citizenship. He had introduced
this bill in the 86th Congress and again
in the 87th Congress. It had passed the
House unanimously both times,. but had
been held up in the Senate committee. Be-
lieving - that he now had lined up enough
support in the Senate to get the bill out
of committee, Dad again introduced it on
the first day of the 88th Congress, January
9, 1963.
The prospect for success looked promising.
But the dream for which he had worked so
hard and so long was never to be realized
during his lifetime, for his time was so much
shorter than he thought. -
My intention was to write about my
father, but as I do so, I find that it is im-
possible to think of either of my parents
without the other, for they Were, and still
are, so completely united as one in all ways.
So different in personality, yet they were so
companionable, for they, perfectly comple-
mented each other. Together, -before the
start of each day, - they prayed for God's
guidance, "Give us the strength and the
wisdom to make wise decisions and to act
according to Thy will." In times of doubt
about the wisdom of a choice to be made or
of grief and disappointment, they found
comfort together in declaring, "Thy will be
done." - -
Always supported by his belief in the
power of prayer and Christian living, Dad
looked forward to the meetings of the Thurs-
day Morning House Breakfast Group, spon-
sored by the International Christian Leader-
ship. Asked to be president of this group
some years ago, he had declined the honor
becaues he felt that his exteremly heavy
workload at that time would stand in the
way of his giving the breakfast group the
time and attention that it should be given by
its leader. He had finally- consented, how-
ever, to take over the responsibility and was
to become president of the group at Easter-
time this year.
While he was the secretary of this group
in 1949, Dad made some remarks on the
House floor that were quoted in the Chris-
tian Leadership News as follows: "More and
more do I feel that only as we in Congress
remain humble and practice the - keeping of
an attitude of supplication for help in clear
thinking will we do our best work for the
American people. As prayer is an entreaty
and an earnest request, I am sure that every"
Meniber of this great deliberative body rec-
ognizes the need of practicing the habit of
prayer as part of clearing mental attitudes
and removing petty or puny thinking from
the field of performance of congressional
duties. Humility begets power; and nothing
gives ordinary man so much humility as con-
sciously to seek divine guidance."
I have already mentioned the remarkable
companionship of my parents, their oneness
of thought and spirit. Now I want to say
something about their devotion to the wel-
fare of each other. Mother came first in
Dad's thoughts, and we children were next.
Since he seemed never to have a thought for
himself, mother kept constant watch over
him to see that his needs were in no -way
neglected. After the tragic. death of my sis-
ter Lydia Louise, 3 years ago, and the near
passing of mother a short time later, Dad's
great delight was in doing unexpected,
thoughtful little things around the house
for her. His sense of humor helped to
lighten the burden of grief. When mother
would thank him for some thoughtful atten-
tion he had paid to her comfort, he would
say, with his sparkling blue eyes twinkling,
"Martha (as he jokingly called himself) has
been here." -
To Dad a task, no matter how humble,
should be done joyously, and nothing that
must be done was too menial for any man to
do, no matter what his station in life hap-
pened to be. Nobody, he thought, should
lose the common touch. Thrifty, himself,
in the use of material goods, he believed
that one should not waste money, things-
or time. It was without doubt his wise and
fruitful use of time and money together
with' his Christian faith that largely made
possible his accomplishments.
After going to Congress, Dad's time out for
pleasure was very spare. Without Mother's
careful watch to see that he did not use all
the 24 hours of the day in work or service,
he would have taken no time for pleasurable
relaxation. He always said, however, that
his work was his pleasure and that he loved
every minute of it. -Unlike most men, he
did not leave his work in his office at the
end of the regular working hours. Instead,
he brought it home, where he would sit in
his lounge chair before a crackling fire,
studying or writing to his constituents.
Dad and Mother had dreams of retiring
one day, of traveling by trailer all over the
country, of editing his diary of daily con-
gressional activities, and of writing things
they wanted to publish. Next year they
were to celebrate their 50th wedding anni-
versary by going around the world on a
freighter. This was to be the "glorious
honeymoon trip" that he had promised
Mother over 50 years ago when he had asked
her to marry him. So many of the dreams
that he had never had either the time or the
money for were at last to become realities.
Some of these dreams had first come to him
in the years of his early youth when he had
to earn a living for his aged parents and get
and education at the same time. The hard-
ships were all over now, and he could relax
and live these dreams with his "treasure,"
his "Joy Forever," his one and only loving
wife,
If God's alloted time for dad had come,
as apparently it had, one- thing is certain:
he had not "rusted away"; he had "just
plumb worn out." Just going to sleep and
quietly slipping away while he was still in
active service would have been his choice
of the way to go.
We who miss him every minute are led by
our faith to believe that his new adventure
is for him a new awakening offering him a
new horizon and a new frontier with oppor-
tunity for further growth. And so we re-
lease him, knowing that love is eternal and
still envelopes and guides us. We face the
future with smiles and a determination to
be worthy of his great love.
He dreamedhis dreams for others, and he
passionately desired to see them fulfilled,
and his great devotion to his country and to
his effort to do what he could in this peri-
lous time to preserve freedom and to help
our boys who would die for freedom, I be-
lieve, would have kept him in his seat next
to the Democratic table as long as God and
his "great 23d" District willed.
Others who, like us, have lost a dear and
precious one of whom memories will never
die may understand my tribute to my dad.
His loving twinkling Irish blue eyes I may
not see. His cheery "hi hi" is gone forever
from our ears. His understanding, "Chin up
with a smile," and life's joy ebbed out to
sea, no longer the physical ears do hear.
But 10. What have we here? My courage
also ebbing out to sea, the tears did fall, I
fear.
Was that his understanding "Chin up with
a smile" in my inner ear ' as I bid him my
last. final fare-thee-well?
As I slowly raise -my chin and try to smile,
do I feel, more than see, his laughing, twink-
ling V Irish-blue eyes embracing me with a
loving smile? ? -
Chin up, with a quivering smile and one
tiny tear in my eye, I hear his cheery "hi
hi. 'I'm always near. No need to weep and
mourn."
And to with a courageous smile a new
and closer relationship is born.
Yes, this wonderful, dear, courageous, ded-
icated Christian father and stateman will
forever be with us in spirit, cheering us on
with his "hi hi" and "Chin up with a smile"
and his very special greeting for mother,"
"You are a joy forever."
Recorded in the annals of history he may
never be.
Recorded in the hearts of all who loved
him, he will always be. -
In loving memory, by his daughter, -
DOROTHY DOYLE STANTON.
FEDERAL SALARY LEGISLATIO
- FOR 1963
previous order of the House, the gentle-
man from Arizona [Mr. UDALL] is recog-
nized for 30 minutes. -
(Mr. UDALL asked and was given per-
mission to revise and extend his remarks
and to include a newspaper article and
tables.)
Mr. UDALL. Mr. Speaker, on Monday
of this week I introduced H.R. 8716, a bill
to adjust the rates of compensation for
most of the officers and employees of the
Federal Government. A companion bill,
H.R. 8717, was introduced by my distin-
guished colleague on the Post Office and
Civil Service Committee, the gentleman
from Virginia [Mr. BROYHILL]. From
inquiries I have already received, I fully
expect that there will be considerable
discussion of these bills in the press and
in the Halls of Congress. Therefore, I
take the time of the House to outline and
comment on their provisions. - In my
judgment, this legislation is -necessary
and is clearly justified.
I am beginning to suspect that one fea-
ture of my bill may not go unnoticed.
This is the section increasing the salary
'of Representatives and Senators from
$22,500 to $35,000:? While this particular
provision may receive the most attention,
it is actually a small part of the legisla-
.tion, both in cost and in importance.
There are approximately 21/2 million
civilian employees of the Federal Gov-
ernment. This bill will affect the com-
pensation of nearly all of them and its
provisions reach from the lowest paid
maintenance employee to the members
of the President's Cabinet and the
Justices of the U.S. Supreme Court. The
bill is intended to provide a logical, ra-
.tional, interrelated pay structure for the
entire Federal civilian establishment. In
a real sense, it is companion legislation to
the recently passed pay increase for the
members of our armed services.
Mr. Speaker, at this point, under
unanimous consent, I include in the
RECORD a brief summary of the provi-
sions of this bill, as prepared by the staff
.of the Post Office and Civil Service Com-
mittee:
SUMMARY OF EMPLOYEE, EXECUTIVE, LEGISLA-
TIVE, AND JUDICIAL FEDERAL- SALARY BILL
(H.R. 8716, BY MR. UDALL, AND H.R. 8717, By
MR. BROYHILL OF VIRGINIA)
GOVERNMENT EMPLOYEES IN GENERAL -
Title I, cited as the "Federal Employees
Salary Act of 1963," adjusts salaries of clas-
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CONGRESSIONAL RECORD - HO-JSE October 10
sifted. postal field service, Foreign Service
and Veterans' Administration medicine and
surgery employees to apply the "comparabil-
ity" principle for all but those in supergrade
and equal level positions. Theprovisions are
the same as in H.R. 7552 and H.R. 7627 recom-
mended by the administration.
The bill establishes new pay schedules (to
replace the second-phase schedules of the
Federal Salary Reform Act of 1962) effective
the first pay period beginning on or after
January 1, 1964. The average classified in-
crease above the present 1964 schedule is 4.7
percent, with higher percentage Increases
for grades 7 and above to correct the artifi-
cially depressed rates in such grades result-
ing from the $20,000 ceiling fixed by the
1962 law. This provides comparability for
classified grades 1 through 15 and equal lev-
els In the other schedules, but not for super-
grade levels. However, supergrade rates
maintain the internal alinement pattern for
grades 1 through 15.
The classified salary range 1s $3,305 to $25,-
500. The postal salary range Is $3,820 to $25;
445. Veterans' medicine and surgery and
Foreign Service top salaries are $25,000. ex-
cept that the Chief Medical Director, Deputy
Chief Medical Director, chiefs of mission,
career ambassadors, and career ministers
would be covered by title II. Executive Sal-
aries.
The postal section improves the means of
fixing salaries of postmasters, using revenue
units for a fiscal year, Instead of the present
receipts for a calendar year, based on 1958
postal rates. Fourth-class postmasters will
be paid a pro rata part of PFS level 5 sal-
aries. based on hours of service required by
the public need.
EXECUTIVE SALARIES
Title II. cited as the "Federal Executive
Salary Act of 1963," fixes higher salaries for
Cabinet officers and other officials in the
executive branch but substantially below
rates recommended by the Randall Panel.
All positions within this title are divided
into 6 salary levels, in place of the 14 present
executive salary levels.
Level I Includes the 10 Cabinet officers at
$40,000 per annum. Present salaries are
$25,000, and the Randall Panel recommends
$50,000.
Level II Includes the Deputy Secretary of
Defense and the Under Secretary of State;
the Administrators of AID. HHFA, NASA,
and VA; chiefs of mission, class I (now $27,-
500) ; the Directors of the Bureau of the
Budget, Central Intelligence, and FBI at
$38,500 per annum. The top present rate
(except as noted) Is $22,500, and, the Randall
Panel recommends $45,000.
Level III, at $36,500, includes the Deputy
Attorney General, the Deputy Postmaster
General, and all other Under Secretaries; the
Secretaries of the military departments; the
Administrators of largest agencies and ad-
ministrations; the Deputy Administrators of
VA, AID, HHFA, and NASA; the Deputy Di-
rectors of the Bureau of the Budget and Cen-
tral Intelligence; Chiefs of Mission, class 2
(now $25.000) ; the Chief Medical Director in
VA; and the chairmen of various commis-
sions and boards. Top pay, except as noted.
now is $21,000, and the Randall Panel recom-
mends $40,000.
All other executive positions would be
placed by the President in level IV, V, or VI,
for which maximum salary rates would be
$33,000, $30,000, and $27,500, respectively.
Rates now range from $19,000 to $22,000, and
the Randall Panel recommends $35.000,
$33,000, and $30,000, for these respective
levels.
Positions expected to be Included in level
IV are such as Assistant Secretaries of execu-
Live and military departments, members of
boards and commissions, and deputy heads
of large agencies.
Level V is expected to Include heads of
principal services and other positions which
the President deems of equal responsibility.
Level VI is expected to include heads and
board members of smaller agencies, deputy
heads of other agencies, and other positions
which the President deems to be of equal
responsibility.
The Vice President's salary Is increased
from $36,000 to $50,500.
The necessary conforming changes in
existing law and repealers are contained in
-Section 205 of the bill.
Section 206 authorizes the President to
fix the salaries of 2 Peace Corps positions:
5 FAA positions: chiefs of mission, class 3
and class 4; all career ambassadors and
career ministers; 30 NASA positions; and
4 U.S. Attorney positions at appropriate rates
not exceeding the maximums for levels IV,
V, or VI of this title. These positions now
may not exceed the $20,000 top classified
salary rate, except for the chiefs of mission,
class 3, who receive $22,600.
All .f the numerous other positions now
in executive pay levels will be placed under
the Classification Act of 1949.
Section 210 contains savings provisions
prohibiting the reduction of any rates by
reason of enactment of this bill. .
LEGSILsTn'E EMPLOYEES AND MEMBERS OF
CONGRESS
Title III, cited In section 301 as the "Fed-
eral Legislative Salary Act of 1963." Increases
salaries of legislative employees in appro-
priate relationship to classified increases, as
was provided in our committee pay bill
(H-P. 9531. 87th Congress) last year.
Section 303 provides increases, comparable
with increases for executive branch officers.
for the officers of the agencies In the legis-
lative branch (including the top officials in
the UnitedStates General Accounting Office.
the Library of Congress, and the Government
Printing Office) and for the officers of the
U.S. house of Representatives.
Section 304 fixes the Speaker's salary at
$50,500 and the salaries of Senators, Repre-
sentatives, and the Resident Commissioner
from Puerto Rico at $35,000. The Randal
Panel recommends $60,000 and $35,000, re-
spectively.
The Randall Panel also recommends that
the allowances of the Speaker and the Vice
President be increased from $10,000 and
$15,000, the amount of the salaries of Mem-
ber, "deductible for income tax purposes to
offset their living expenses" be increased
from $3,000 to $5,000, and that per diem in
lieu of subsistence for Members in official
travel status be Increased from a maxim-.tm
of $16 (or $30) to $50. No such provisions
are in the proposed bill.
Section 305 requires that any person lp-
pointed to the staff of a Member of Congress
must render actual service in the Member's
Washington or district office.
JUDICIAL EMPLOYEES AND FEDERAL JUDGES
Title IV, cited as the "Federal Judicial
Salary Act of 1963," increases salaries of em-
ployees in the judicial generally in propor-
tion to classified salary Increases provided by
title I.
Section 403 increases the salary of ':he
Chief Justice of the Supreme Court from
$35,500 to $50,500, and salaries of the Associ-
ate Justices from $35,000 to $50,000. The
Randall Panel recommends $60,500 and $60.-
000 for these respective offices. Circuit
judges' salaries would be increased from
$26,500 to $40.500, and other Federal judges
would be granted comparable Increases.
APPOINTMENT AND SERVICE LIMITATIONS;
EFFECTIVE DATE
Title V, section 501, prohibits nepotism
In certain appointments to positions in the
Government unless full disclosure of the re-
lationship Is made a matter of public record.
Section 503 makes the proposed new sal-
axles effective the first pay period which be-
gins on or after January 1, 1964.
Mr. Speaker, because the salary levels
in the bill for the principal officers of
the Federal Government in all three
branches are based, in large part, on the
recent recommendations of the so-called
Randall report. which I shall discuss
further in a few moments, I should also
like to print at this point a comparison
of the'present salaries of top officials
with the salaries proposed by the Rand-
all Commission and the salaries provided
for by my bill.
Mr. Speaker, under unanimous con-
sent, I include a table containing these
figures at this point in my remarks:
Cantpnrisan of salary rates for legislative, judicial, and executive officials-Present and
pro posed
Title 1, elacsifled and pnst:d etnplnyees, etc., cost $5od m Ilion.
Title 11, Executive, cast $0.7 mullion:
ti.,. I'realdent ------------------------------------- ---------------
L,j'.el I, Cabinet (10olfloes)------------------------ ---------------
I'--1 H. Immediate subrab[net level (Iooslces)___ _______________
l.e-l III. Deputy and Under secretary level (46 of lees) ----_.___._
l.e :-e l 1%]
La?.ei V)Ail other executives, to he assigned by I resident t__..._
Level 4'l iiiiii
Title 111. Conoress:
Th,. 3(oak.'r------------------------------..------- ---------------
\[rnrla?ra, asst $6.9 toillion...----__________________ ------ _--------
L4-, csiatlve employees, cost $7.l million.
Title IV, judges, cost $7.2 million:
Supreme Court:
('hlefJustice----------------------------------- ._.-------------
Aotoeinte Justices------------------------------'---?-----------
Cir,,uit Courts_____________________________________________________
Court of Claims---------------------------------------------------
Co ort of Customs and Patent Apixwrls_____________ ________________
Court of Military Aplrat:...... ___________________.______._________
Ut..trict Court.____________________________________________________
Cu'toms Court ----------------------------------------------------
'tar t'ourt___________________________--__---_-.___-.____-__-_______
Jn.lielai employees, cost $3.0 million.
$35, ow
25, o(*
22,500
21,000
19,000
22000
35, 000
t., 500
as, 500
&5, 000
25,500
25, 500
25, 500
25, 5110
22,600
22, 500
22,500
Randall
report
$60. 000
50, 000
45, 000
40, 000
35.000
(3.000
30,000
60. 000
3,5,000
60,500
60,000
45, 000
45, 000
45, 000
45, 000
35,000
311, 000
3,5, 000
Proposed
rate
$,",0. 500
4C, 000
3?, 500
3f, .i00
32,000
3(.000
2-".500
5(.500
3:,900
50, 500
50,000
40.500
40,,W
40, 500
40,W0
35,000
35, (00
35, (100
I Th.- President will place positions In levels IV, V, an I VI In accordance with standards set forth in the bill.
exam pie, ASSlbtsltt Secretaries of executive department are expected to be placed in level IV.
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1963 CONGRESSIONAL RECORD - HOUSE 18329
I might say as a personal aside that I
have been warned by several of my col-
leagues and by some of my friends in
Arizona that the sponsorship of this bill
may have disastrous political conse-
quences for me. I fully recognize that
there are risks involved but I feel so
strongly the need for legislation of this
kind that I accept these risks. My deci-
sion to sponsor this legislation is based
on three principal factors:
This first reason is that last year, the
Congress established for the first time a
rational, logical machinery for the reg-
ular and annual adjustment of pay
schedules in the postal and classified
services. It was decided that the old
system of irregular increases, usually
rushed through under pressure in elec-
tion years, should be abandoned. In
place of this system, the Congress deter-
mined that the guiding principle of pay
in the classified and postal service should
be comparability. This means, in es-
sence, that the Federal Government
should give comparable pay for compar-
able skill and responsibility to that paid
by private enterprise for similar duties.
Under the machinery of the 1962 act, the
President, based on recommendations of
the Civil Service Commission, and on
studies of the Bureau of Labor Statistics,
recommends the adjustments necessary
to retain comparable pay schedules.
Unless Congress keeps faith this year,
this machinery will, for all practical
purposes, have been abandoned without
a trial.
The second main reason for my spon-
sorship of this legislation is the crying
need I see for better management of the
affairs of the Federal Establishment.
Our Federal budget this year is crowding
$100 billion and, whether we like it or
not, budgets of something near this size
will continue. The Federal Government
operates a Defense Establishment
spending some $55 billion a year. It
holds lands and other resources worth
hundreds of billions of dollars.
It operates a space program, a pro-
gram of public roads and public works,
a large and important Federal aviation
agency, and dozens of other activities
which directly affect the lives of all
Americans. A successful army needs
not only brilliant and dedicated gen-
erals; it needs well trained, experienced
majors, lieutenants and sergeants to
carry out the strategy agreed upon. It
is in the lower executive ranks where
many of the most important day-to-day
decisions are made and where essentially
it is determined whether we have effec-
tive economic administration or not. It
is in the intermediate and lower execu-
tive grades of the Federal Government
where our present pay scales are most
inadequate. In most instances, we not
only do not have comparability with pri-
vate enterprise pay, but in the upper ex-
ecutive levels particularly, the Federal
Government pays less than one-half of
the salaries paid by private enterprise
for similar responsibility and skill. It
has long been apparent that the present
salary levels of the Members of Congress,
the Cabinet, and the Federal judges are
a rigid ceiling which prevent the estab-
lishment of proper salary levels for the
Federal officials in key executive posi-
tions.
My third reason for sponsoring the
features of my legislation which would
raise the salary levels_Qf the Members of
Congress, the Federal judges, and Cabi-
net members, and heads of the major
Federal agencies is that the present sal-
aries are fixed at unrealistic and ridi-
culously low figures which do a great
injustice to those in the Federal Govern-
ment having the most burdensome re-
sponsibilities of all.
Mr. Speaker, I should like to discuss
some of these factors in a little more
detail. Successful managers in private
industry learned a long time ago that it
is simply a good investment in sound
management to pay substantial compen-
sation to the men who carry heavy bur-
dens and must make major decisions.
The result is not waste but savings.
The same principle should apply in the
Federal Government. Our present prac-
tices result in a situation where the police
chief of Chicago, charged with protecting
the lives and properties of the citizens of
one city is paid a salary of $30,000, yet
the Secretary of Defense, whose decisions
ultimately affect the lives and security
of all of the American people, is paid
$25,000 a year. This, despite the fact
that the Secretary of Defense presides
over an establishment spending each
year some $55 billion of tax money and
employing uniformed and civilian peo-
ple totaling more than 3 million. It is
absurd to me to ask a man to take on
this crushing burden at a salary of $25,-
000. The same could be said of the re-
sponsibilities of the members of the U.S.
Supreme Court whose present pay-$35,-
000-is much less than thousands of suc-
cessful attorneys in our major cities. The
comptroller of the city of New York is
paid $40,000 a year. The Secretary of
the U.S. Treasury is paid $25,000. The
Director of the FBI, who is charged with
heavy and burdensome responsibilities
involving our national security and who
heads a law enforcement organization of
nearly 14,000 skilled and dedicated tech-
nicians, is paid $22,000.
Most of my colleagues would readily
agree that the salaries I have just men-
tioned are utterly inadequate and yet
Congress has very properly refused to
raise these salaries until such time as the
compensation of its own Members is ad-
justed. This vicious circle goes on to
affect the assistant secretaries in our
Cabinet departments and their assist-
ants and their major bureau chiefs. Go-
ing down the scale, the failure to raise
congressional pay depresses the maxi-
mum salaries which can be offered to
lawyers, doctors, scientists, space tech-
nicians, and many others in key execu-
tive and managerial positions throughout
the range of the Federal service.
Perhaps an example will help. The
manager of Los Angeles International
Airport is paid $40,000. Recently, the
Federal Government opened Dulles In-
ternational Airport here in Washington
under the management of the Federal
Aviation Agency. The taxpayers have
invested in this facility more than $100
million, yet the Federal pay structure is
such that the maximum pay available
for the executive manager of this in-
stallation is $16,000. If the person se-
lected is good and efficient, it is almost
certain he will be hired away within a
very short time. If he isn't, he will make
mistakes and one bad decision could cost
much more than an adequate salary. I
could cite dozens of similar examples in
regard to other specialists in the space
program, in the Defense Department,
and in other technical and scientific
agencies of the Government. Every year
dozens of our best skilled technicians and
managers are hired away by private en-
terprise.
-A recent news story indicated that a
distinguished Senator who had held posi-
tions of great trust and responsibility,
and had been nominated by one of our
political parties for the Office of Vice
President of the United States, died after
some two decades of Federal service leav-
ing an estate of $20,000. Some 10 years
ago, a great public servant who was an
outstanding Chief Justice of the Su-
preme Court, died leaving an even smaller
estate. No one should contemplate be-
coming wealthy while working for the
Federal Government but I believe that
pay scales for top officials should prevent
situations of this kind. While the Fed-
eral Government cannot pay the huge
salaries received by our great industrial
leaders, we should not be afraid to give
really substantial compensation which
will attract the very best brains and tal-
ents in our country. This goal has not
been achieved and the result is a tend-
ency for the timid, the mediocre, and the
insecure to stay in Federal Government
while the bold, younger executive with a
future leaves Government service for a
higher paid position in private enterprise.
A young executive with an obvious man-
agement potential can join one of the
great corporations and look forward to
earning many times what he would make
if he continued in Government service.
We are all familiar with the fact that
Robert McNamara took a cut of some-
thing like $375,000 when he left his job
as president of the Ford Motor Co. to
become Secretary of Defense. What we
may not realize is that one can survey
recent reports of our large industrial cor-
porations and find thousands upon thou-
sands of instances where salaries of $50,-
000 to $150,000 are paid to upper level
management officials. Here are just a
few examples:
The president of the Duquesne Light
Co. in Pittsburgh, Pa., makes more
money per year than the total salaries
of the Chairman and all four members
of the Federal Power Commission, which
has jurisdiction over hundreds of such
utility companies from coast to coast.
The president of the American Tobacco
Co. makes more per year than the com-
bined salaries of the Secretaries of De-
fense, State, Treasury, Interior, Agri-
culture, Commerce, Labor, and Health,
Education, and Welfare.
The president of Standard Oil of New
Jersey makes even more than that-
enough to pay the entire Cabinet plus,
say, a Secretary of Urban Affairs and
some other Secretary we haven't even
thought of yet.
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CONGRESSIONAL RECORD - HOUSE October -to
The chairman and chief executive of
the Ford Motor Co., Henry Ford II,
testified some months ago before the
Ways and Means Committee in support
of the tax bill. His salary last year was
approximately equal to the total com-
bined salaries of that entire committee
of 25 members, one of the most power-
ful and important bodies in the United
States.
The president of one utility company
in Arizona makes more money than the
combined salaries of Senators CARL HAY-
DEN and BARRY GOLDWATER, and his own
Congressman, our colleague, Represent-
ative JOHN J. RHODES, of Phoenix.
Fortune Magazine regularly complies
lists of the top 500 corporations in the
United States, Let us look at the com-
pany at the very bottom of that list.
the smallest of the 500. The Pitney-
Bowes Corp. recently had that distinc-
tion. Let us forget for a minute the
president and the chairman of the
board. Let us not forget even the third-
highest-paid executive and drop down to
level 4 in Pitney-Bowes salaries, the ex-
ecutive vice president. Last year this
man made $53,893, more than double the
salary of the Secretary of Commerce.
But let us look further at this corpora-
tion at the bottom of the Fortune list
of 500 corporations. Its top four execu-
tives last year made an aggregate of
$320,000. How does this compare with
the pay of Senators and Congressmen?
Well, I might just point out that these
four executives made more than the
combined salaries of the eight Senators
and six Representatives comprising the
congressional delegations of Maine, Ver-
mont, Rhode Island, and Delaware.
Surely we can all agree that among
the most important jobs In the United
States are the 10 positions in the Presi-
dent's Cabinet. By the decisions
these men make our entire economy
must stand or fall. One might assume
that these men, who will allocate the ex-
penditure of something like $100 billion
this year, would be compensated on the
same scale of magnitude as the top ex-
ecutives in private Industry. However,
from a study of the annual reports of
corporations listed on the New York
Stock Exchange, I estimate that in this
sector of the economy alone you will find
more than 10,000 executives whose sala-
ries exceed those of our top 10 Cabinet
officers. Furthermore, this does not take
into consideration tens of thousands of
corporations listed on other exchanges.
unlisted or private, doing business across
the country.
An indication of the number of salaries
exceeding those of our Cabinet members
can be found in the records of the In-
ternal Revenue Service, which in 1960 re-
ported there were 125,000 persons in this
country whose adjusted gross Incomes,
after deductions of every description and
capital gains exemptions, were $50,000 or
more. In other words, our economy
compensated 125,000 persons at a rate
more than double that of our top 10
Cabinet officers.
Please understand, I am offering these
facts and figures, not In criticism of our
private corporations, but to show the
great disparity between the salaries paid
Federal executives and executives in pri-
vate industry. I do not for a minute sug-
gest that Cabinet members or Congress-
men or Supreme Court Justices should
receive salaries in the extreme heights
available in private industry, but I do
suggest that the gulf should be narrowed
if we hope to get and retain top talent
In Government.
The failure to raise congressional,
Cabinet. and judicial pay not only af-
fects the executive and managerial levels
of the Federal system but depresses the
entire Federal pay structure and does an
injustice even to postal clerks and letter
carriers.
The 500,000 letter carriers and mail
clerks who operate our great postal sys-
tem. the world's largest enterprise, are
underpaid by any objective standard.
These men and women make a lifetime
career of the postal service and should
receive salaries comparable to positions
requiring theesame kind of skill and re-
sponsibility in private industry.
During the last years of the Eisen-
hower administration, the President
asked Clarence Randall, formerly head
of the Inland Steel Corp., to head
a commission to recommend salary lev-
els for Members of Congress, the Cabi-
net, and the upper levels of the Federal
Government. Mr. Randall's report was
an impressive document. Recently.
President Kennedy asked Mr. Randall
to update his committee findings and he
did so with the help of a committee
which included such outstanding Amer-
icans as former Supreme Court Justice
Stanley Reed, General of the Army
Omar Bradley. Marion Folsom, of the
Eisenhower Cabinet, and others. The
executive, judicial, and congressional
salaries provided for my bill are based
on the findings of the commission and.
in fact, my salary levels are in most in-
stances less than recommended by the
Randall panel.
The September 15, 1963, edition of the
New York Times magazine carried ar
article by Mr. Randall summarizing the
work of that panel.
Mr. Speaker, under unanimous con-
sent, I will include the article by Mr.
Randall in the RECORD at the conclusion
of my remarks.
Our country was founded on the
theory that democracy works best when
able, ambitious young men from any
level of life can aspire to be President
serve in the Congress, or in some high
position of government, if they car
prove their merit. The kind of pay
scales we now have are likely to result it
having a Congress in which this k1ne
of person can be found only If he serve:
at a sacrifice to himself and his family
Some feel that honor is adequate pay-
something like heading the communit3
chest. I cannot imagine, however, that
this is the way we want to run our coun-
try. Congress should not be limited to
men who are wealthy or to politica'
hacks who find the level of pay more
than they could earn in private employ-
ment.
The Members of Congress should lx
paid a salary which would make it pos-
sible for the recognized leaders in a com-
munity to seek the office and be assurer
of compensation somewhat similar to
that which they might expect in posi-
tions of leadership in their own com-
munities. This is not the case today.
Mr. Speaker, let me discuss in a little
more detail the $35,000 which my bill
provides for the Members of Congress.
I think my colleagues fully recognize, al-
though the general public may not, the
almost impossible burden of serving in
the Congress.
Until recent years, Congress was in
session ordinarily from January through
June or July. The Members had time
to attend to their private business af-
fairs. to practice law, or otherwise sup-
plement their income. It is expected
this year that Congress will have a 12-
month session and every indication is
that long sessions will be the rule in
coming years.
At the same time he is being deprived
of the time to pursue his private business
interests for supplemental income, the
Congressman is required to maintain
2 homes, to live in Washington, where
living costs are substantially higher
than most other places, 9 months of the
year, to provide travel expenses for him-
self and his family if they are not to lose
touch with their district, and to have
his family and personal life disrupted
by the demands of an average 500,000
people he is elected to serve. Perhaps
I could express it better this way: If
standard of living and economic well-
being were the sole considerations, a
Congressman would be far better off
with a $15,000 junior executive position,
living all year in Terre Haute, Tv~zcson,
or Tallahassee, than he would be at a
$22,500 salary living in Washington
most of the year but dividing his time
between there and Arizona. To express
congressional salary in terms of living
standards and economic well-being un-
der such conditions, one must discount
thegross salary figure by 30 or 50 per-
cent.
In my bill, the salaries paid to Sen-
ators and Congressmen would remain
the same as those paid U.S. district
judges. This traditional relationship is
maintained even though most Members
of Congress feel that congressional pay
should be the same as the Federal circuit
judges or the U.S. Supreme Court
Judges. -
Members of Congress have had no pay
increase since 1955, despite the substan-
tial increases in the cost of living and
despite the fact that pay for other meni-
bers of society has been increased several
times. For example, the pay increase I
propose for the Members of Congress
amounts to some 55 percent. The typ-
ical post office clerk since 1955, and in-
eluding the pay raise I would provide for
him In my bill, has had a total increase
of 55 percent.
It must be remembered that all the
Members of Congress receive the same
salary. Those who serve as chairmen
of some of our most important commit-
tees receive $22,500. The chairman of
a major House or Senate committee may
deal with the appropriation of billions
of dollars of public money. The deci-
sions he makes may affect the security,
welfare, and economic well-being of mil-
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1963 CONGRESSIONAL RECORD - HOUSE
lions of Americans for years to come.
In addition to presiding over the flood of
legislation presented to his committee,
the chairman must pay attention to the
demands of at least 400,000 individual
constituents and he must be careful, if he
wishes to continue to serve, to visit his
State or district often and to keep in
close touch with its problems and its
people.
It is heartening to me to note that
many State and local governments have
recognized the need for adequate pay in
their top positions of responsibility. Let
me cite some of the salaries paid by State
and local governments. In my own
State, there are two city managers and
two local school superintendents who are
paid substantially more than the Mem-
bers of Congress. Iii the city of Los
Angeles, there are 19 officials, including
7 associate school superintendents, who
receive more pay than the Members of
Congress. The superintendent of schools
of Chicago is paid $48,000 per year. The
taxpayers of these city and State gov-
ernments do not consider this a waste of
public funds but an investment in good
government and in efficiency. In the
State of New York, there are more than
200 State judges with salaries greater
than those paid Federal district judges in
New York and the salaries range upward
to $39,000 a year.
Last year Congress created the Com-
munications Satellite Corp., a quasi-pub-
lie agency, to develop satellite commu-
nications. - When the board of directors
of.that corporation hired its first presi-
dent, his salary was fixed at $1.00,000,
nearly five times the pay of Members of
Congress. There was hardly a word of
criticism. Why? Because most people
recognize that top pay is necessary to
attract top talent in industry.
Legislation of the kind I have spon-
sored has had wide support. It is sup-
ported now by the Chairman of the Civil
This is the kind of management in-
vestment the board of directors of Gen-
eral Motors would approve almost with-
out discussion. In my opinion the Fed-
eral Government has a stake in good
management too, and it can ill afford not
to make such an investment in its
greatest asset-the skills and experience
of its top executives.
Mr. Speaker, I include a summary of
the annual cost of these proposed in-
creases, plus those for all other levels of
Government, In the RECORD at this point
in my remarks:
Summary of annual cost
Title I-Classified and postal
employees, etc______________ $508,000,000
Title II-Executive ----------- 6,700,000
Title III:
Members, etc ------------
Legislative, etc__--_______
Title IV:
Judges -------------------
Judicial,etc ---------------
6,900,000
7, 100, 000
7,200,000
3,600,000
Total__________________ 539,500,000
One often reads sentimental newspa-
per stories which would suggest serious
and shocking abuses in connection with
the staff and payrolls of Members of
Congress. I am happy to testify that
the great and overwhelming majority of
my colleagues are above any reproach in
this regard. Yet, I concede that there
-have been instances of staff pay prac-
tices which the public may properly re-
sent and I believe the public has a right
to demand that work be performed by
employees of the Federal Government
for the pay they receive. Accordingly,
my bill has two special features designed
to meet in part some of these criticisms.
Under my bill, no person having power
to appoint subordinates in the executive
or judicial branch of the Government
will be able to employ his child, spouse,
brother-in-law, son-in-law, cousin, or
other close relative without specifying in
the instrument of appointment the pre-
filar recommendations were made by Iortn. A record open to the press and
public
will be
President Eisenhower. The great I3oo- of all such appointments hiprovision
ver Commission in its studies of efficiency d.I and believe
thm most of f the e will
in the Federal Government recommend- plaints discourage rlsc with to most cent
ed drastic increases in Federal execu-
tive pay as a means of maintaining the of relatives. Secondly, under present
strength of the Federal Establishment. law there is no requirement that staff
can employees of a Member of Congress per-
My bill has been endorsed by the Ameri-
can Bar Association, the National Civil form their duties at any particular place.
Service League, and by many business There have been a few reported instances
and professional groups. where a Member of Congress employed
All right, I have given some of the a staff assistant who had his regular
reasons why executive, congressional, residence at some place far removed
legislative, and judicial salaries should State. Washington bill low or would the Member's hom-
be
be increased. I have indicated some of meat . salary bill to prohibit the pay-
support for these increases, member unless any congressional
are t stay
Granted all this, can we afford them? I his duties ies are actually
believe we can. performed in Washington or in the
The total yearly cost of the salary in- Member's home State office, unless the -
creases my bill provides for Members of waives such Cammia House Administration
Congress, our Federal judges, Cabinet requirement.
officers, Finally, I would say that I recognize
agency heads, and other top ex- that this is a subject on which there are
ecutives, plus the additional pay pro- very honest and very sharp differences
vided for the key executive and man- of opinion and I respect the right of any
agerial skills in the top four grades of the citizen to differ with me and to criticize
classified system, amounts to $49 million. me as severely as he chooses. I fully
This is five one-hundredths of 1 per- expect that the introduction of this bill
cent of this year's budget. It would,run- will bring down upon me considerable
the Defense Department for less than 8 ridicule and criticism, but I feel very
hours, strongly about the necessity for the
18331
changes provided by my bill and I am
perfectly willing to defend my position
before those who elected me and be-
fore anyone else who wishes to discuss
constructively these serious problems.
The Members of Congress are an out-
standing, dedicated group. They have
many hard and difficult decisions to
make. One of the most. difficult fea-
tures is that the Members of Congress
are the only persons in the entire Fed-
eral Establishment who have the respon-
sibility of fixing their own pay. This re-
sponsibility is doubly burdensome if the
Member happens to serve, as I do, on the
committee which has jurisdiction over
Federal salaries. I would only urge that
my colleagues in discussing this problem
face it objectively and responsibly and
make their decisions in a fair and rea-
sonable manner, trying to allow for their
direct and personal involvement in the
decisions to be made.
In its report the Randall Commission
made this observation:
We are convinced that our top salary
structure no longer provides positive en-
couragement to men and women of the
highest ability, dedication, and conviction
about the American way of life to accept
Federal appointments in either the execu-
tive branch or the judiciary, or to seek Fed-
eral elective office with assurance that the
financial demands upon them can, in most
instances, be met from their salaries.
Later the Randall panel made this
observation: -
Our country cannot afford to depend only
upon rich men to run its affairs. Neither
should we place excessive reliance on busi-
ness executives on leave of absence who are
both expected to, and want to, return to
their companies after short periods of pub-
lic service. Both may render valuable, un-
selfish service, but, as we stated in our
report to you in February 1962, "it seems
to us bad public policy to make it difficult
for others of comparable ability to serve the
Government."
In short, the Randall Commission held,
and I hope the Congress will agree, that
service in the Congress, in the Judiciary,
and in the top positions of the executive
agencies should not be Bitted to the
wealthy or the incompetent.
Passage of this long-overdue salary
reform legislation will help insure that
this is. never so.
[From the New York Times Magazine, Sept.
15, 19631
U.S. PROBLEM: Low PAY FOR Top JOBS
(By Clarence B. Randall)
One of the great new freedoms that come
to a man in retirement is the right to stick
his neck out. Released from institutional
responsibility, he can say exactly what he.
thinks at all times. Furthermore, when the
brickbats are thrown, they bounce off better
than they did in earlier years. I know, be-
cause plenty of them have been coming my
way of late, thrown by both old friends and
new enemies, by the business community
and the press.
This furor was all triggered when the Bu-
reau of the Budget in Washington recently
released to the press the report that I had
submitted to the: President in behalf of the .
so-called Pay Panel, the committee which
the President had appointed to review sal-
aries in various departments of the Federal
Government, and which he had asked me to
chair. Our report contained a series of rec-
ommendations for pay- increases. Among
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18332
these were proposals to raise the annual pay has 93. Pennsylvania 185, and New York 432 grounda for talent
sthese day s, indeed and
re'; alts a of Cabinet officers from #25,000 to 150,000. New York pays Its Governor $50,000, p public
the salary of Congressmen from $22,500 to the use of the executive mansion, and th' offer of doubled pay just at the time when
335,000. and of Supreme Court Justices, the mayor of New York City receives 650,000. his children are ready for college.
Vice President, and the Speaker of the House Los Angeles pays the general manager o' Yet sometimes he does just that. I knew
from $35,000 to $80,000. Its water and power departments $40,56t. personally of a case where a career man who
This provoked the storm. One of my fa- Florida pays the director of its Inter-Amen ' was earning about $14,000 a year was otf~red
vorite newspapers. the Chicago Tribune. bon- can Trade Exposition 650.000, and In Boston the presidency of a corporation with a salary
aired me with a blistering editorial. "What," the general manager of the transit authorit' of $50,000 if he would leave the Government.
asked the Tribune, "have these people ever receives #40,000. In Chicago the salary of He turned It down. He was occupying a post
done for us?" the superintendent of schools is 648,600. of great sensitivity at the time and felt that
Two things bothered me about this up- Turning to other fields for comparison!. duty to his country had to be the controlling
roar. First, most of those who were savage we found that in the United States there an motive in his life. One of the directors of
in their attacks had quite obviously not read 81 college presidents who are paid in excer i the company had spoken to me about the
the report. Second, their behavior reminded of $25,000. Among the large charttabl a matter in advance, and I had prophesied
me unhappily of my own earlier years, when foundations there were 17 Instances in whit 1 that this would be the result. He persisted,
I am afraid I, too, sounded off oecnssionally the principal full-time officer received in ex- and when he was turned down, he found the
in hot anger before I had studied in depth cess of $35,000. A member of the Federt l refusal completely incredible.
the subject upon which I was expressing Reserve System's Board of Governors receivt 5 During the past 15 years. and under three
positive opinions. only $20,000, but in the Federal Reserve successive administrations, I have been priv-
What disturbed me most was the fact that bankq themselves there are 19 officers who ileged senior observe career at firsthand rsand to do work
nof
almost without exception the press failed to are paid more than that. In private indu: - our noCVaaree ton, but in many of of
list in full the names of the other members try on a sampling of 1,157 corporations Sr - only in ingt ton, but I They are the
of the committee. Here they are: gaged in manufacturing we found that tie remote parts
Gen. Omar Bradley; John J. Corson, of the median salary figure for the highest pad backbone of our Government, and -heir
Woodrow Wilson School of Public and officer was 191,000. qualitydetermines s ~Qmgere some its tdee-whe are
International Affairs, Princeton University: Naturally, such comparisons must not 1 e performance of their duties,
Marion B. Folsom, of the Eastman Kodak controlling In this sensitive and s1 ificant careless are mediocre, as there are in
Co.; Theodore V. Houser. former chairman of problem. but they are nevertheless challen:.; and some But there are many, I am proud
Sears, Roebuck & Co.; Robert A. Lovett, of ing. As panel members we were fully coot- and nd business. i In the
say. who are tsimply here superb, equal in every
Brown Brothers Harriman; George Meany, mitted to the philosophy ? that there can 'to president of the American Federation of no money equivalent for the deep inner anti i- way say,
way to the who
to the best wprofessions, hfomI superb,
or in any known of in in-
Labor and Congress of Industrial Organiza- faction which comes to a man who 1s Prix I- dustry. the life. I the merit of these
Lions; Don K. Price, Jr., of the Graduate leged to give a period of dedicated service other men that the pay panel feth se
School of Public Administration. Harvard to his country, but we also believe that the to wa was and reward in order that more sik
University; Robert Ramspeck, former Mem- who do not serve should share the sacrlfl;e recognize
her of Congress from Georgia; Stanley F. of those who do. them may be persuaded to enter the Gov-
Reed. Associate Justice (retired), of the U.S. So far I have discussed merely the problt in eminent service.
Supreme Court, and Sydney Stein, Jr., of of an appointed officer, using a member of What will all this cost? Not over $20
Stein Roe & Farnham. the Cabinet as an Illustration. Obvious.y. million a year-even if everything that the
Every man In that group not only had won however, similar situations exist outside of pay panel has recommended is put into effect.
distinction in his own walk of life, but had the executive branch. A Justice of the S1- Large as this sum seems, it would hardly
seen at firsthand over many years the Intl- prenie Court serves for life yet is paid ar be rated as a good typographical error in
mate operations of our Government. And we le.:s than most of the members of the I ar computing the cost of sending a man to the
were unanimous in our recommendations. I who present their cases before him. A Me n- moon.
have served from time to time on other such her of Congress has to maintain two homes I do not intend by this to criticize the
groups. but never before have I seen men of and two offices, one of each In his distl tct space program. but It does seem to me that
such diverse backgrounds arrive at such solid and in Washington; he Is sharply limited in in establishing our priorities in the alloca-
consensus as was the case here. the number of trips which he may make at tion of our public funds, nothing should have
Why did we do what we did? public expense between the two places. "et precedence over what may be required to
Take the case of the Cabinet officer first. the doctrine of the "consent of the govern, d" secure and keep In the Government service
He must move to Washington at his own and the public welfare In a democracy clef riy the best of brains and character that can
expense, maintain a home suited to his re- require the closest possible relationship te- be found in our country.
sponsibility, do much entertaining for which tween the people and those who repres'nt
he is not reimbursed, accept no outside In- them in Congress.
COLUMBUS DAY, 1963
come whatever, not even for speaking en- The most pressing problem, however, the
gagements, and stand ready to liquidate one which has been largely overlooked so far The SPEAKER pro tempore. Under
whatever Investments he may have if he is in discussion of the pay panel's report. : nd
charged with cpnflict of Interest. the one which gave us the deepest cone rn, previous order of the House, the gentle-
I would be the first to agree that it would is the plight of the senior career office: in man from New York [Mr. Ra01eEY] is
he unwholesome in a high degre if compensa- Government, the man who gives his en;ire recognized for 20 minutes.
tion to Government were set at such levels l:f,- to the public service. Mr. ROO E Y of awd proper York.. Mr.
that
that men sought appointments as a matter The compensation of his chief put' a Speaker, it is of that
of financial advancement, but it seems ceiling upon his own salary. Not only t fat. all the United States and
equally clear to me that It is wrong to keep but there must be several grades in beta ern ica should pause on Columbus Day 1963
the compensation at such a low level that for the lesser appointive officers just be tow Italy as well as Christopher Co-
many sons he Italy
to on5 the first of well
only rich men can be persuaded to accept the the top. In the executive branch there n ust honor
responsibilities. Is intermediate pay levels below the rant of
The present administration has put an Secretary for a Deputy Secretary, an U:,der who have come to our shores.
emphasis on youth, and many able young Secretary. and Assistant Secretaries, be fore Christopher Columbus is indeed a .,ym-
men were recruited for the public service. the point is reached where the appoir Live bol of the essence of the Italian spirit
Already a disconcerting number have left, positions stop and the career grades begin. that has continually stressed new dis-
returning to private life for "compelling per- For all practical purposes, therefore. vin- coveries from the days when Ronan le-
sonal reasons." Naturally, I have never le^s a change is made in the salary of the gions sought new barbarisms to bring
talked to a single one of them about it. but Cabinet Secretaries, no career officer who within the power of Pax Romana.
I feel very certain that in many cases the enters the Government service upon lea ring live in
financial sacrifice required was beyond their cc.tiege, and who gives his entire life to it can hanThe the world is a progress betetter r place rs to live n
resources. e. er hope to earn more than 320,000 a 'ear, , tion has been greatly advanced and en-
Nor do I understand why we permit the nit matter how great the responsibility w alch
basic salaries in our Federal Government to he bears or how competent his perform; nee. ricked by the painters of Italy who dis-
he established and maintained at levels be- Not only is this unfair to the individua:s on covered new ways to capture light and
low those prevailing in our State and mu- tite basis of comparison with other voca ions Movement; by the sculptors of Italy who
nlcipal units. which are open to them, but it places a transformed rock into flesh; and by the
At the present time, a member of the severe limitation upon our Government'shen architects of Italy who have filled a
Cabinet who as a Secretary heads one of the It comes to the recruitment of personnt 1. planet with grace and comfort. But, of
departments which are so vital to our nn- That these levels of compensation are course, we need not stop with the past
tionai welfare and safety, receives $25,000 a presently inadequate is graphically 'flue - see the eedCt of Italian discoveries
year. Contrast this with the figures given trated by the number of occasions on v hich to our present mp and our future. di
in our report for States and cities. such career men who are approachini the No men did more our make the world
The State of California has 135 positions senior levels are hired away by Industry. To
which pay more than $25,000 a year; Illinois businessmen Washington is a happy hu iting modern than did those voyagers on the
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