CONGRESSIONAL RECORD--HOUSE

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August 12, 1974
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A roved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 August 12, 1974 CONGRESSIONAL RECORD ?HOUSE pena or order of the Secretar or such officer or employee issued under par raph (1) or ? paragraph (3) of this subsecti issue an order requiring compliance ther ith; and any failure to obey such order of e court may be punished by such court as a c tempt thereof. "(5) Witnesses summoned pursue to this subsection shall be paid the same es and mileage that are paid witnesses in t e courts of the United States. "(6) (A) The Secretary is authorized to re- quest from any department, agency or in- strumentality of the Government such statistics, data, program reports, and other materials as he deems necessary to carry out his functions under this title; and each Such department, agency, or instrumentality is authorized and directed to cooperate with the Secretary and to furnish such statistics, data, program reports, and other materials to the Department of Transportation upon re- quest made by the Secretary. Nothing in this subparagraph shall be deemed to affect any provision of law limiting the authority of an agency, department, or instrumentality of the Government to provide information to another agency, department, or instru- mentality of the Government. ? ."(B) The head of any Federal department, agency, or instrumentality is authorized to detail, .on a reimbursable basis, any person- nel of poll department, agency, or instru- mentality to assist in carrying out the duties of the Secretary under this title." (b) Section 112(e) of such Act is amended by striking out "All" and inserting in lieu thereof "FACept as otherwise provided in sec- tion 158(a) and section 113(b), all"; and striking out "subsection (b) or (c)" and in- serting in lieu thereof "this title". SEc. 403, COST IlsirCamATioN, , The National Traffic and Motor. Vehicle Safety Act of 1966 (as amended by section 102) is further pmenqed hy inserting after section 113 the following: "SEC. 113. (a) Whenever any manufacturer opposes an action of the Secretary under -section 103, or Under any other provision of this Act, on the ground of. increased cost, the manufacturer shall submit such cost in- formation (in such detail as the Secretary may by rule or order prescribe) as may be necessary in order to properly evaluate the Manufacturer's statement., The Secretary shall thereafter promptly prepare an evalua- tion of such cost information. "(b) Such cost information together with the Secretary's evaluation thereof, shall be available to the public unless the manufac- turer establishes that is contains a trade secret. ,Notice of tis ,availability of such in- formation shall be ,published in the Federal Register. If the Secretary determines that any portion of such 'information contains a trade secret, such portion may be disclosed to the public only in such manner as to pre- serve the confidentiality of such trade secret, except that any such information may be disclosed to_other officers or employees con- corned with. carrying out this title or when. relevant in any proceeding under this title. Nothing in this subsection shall authorize the withholding of information by the Sec- retary or any officer or employee under his control, from the Mily authorized commit- tees of the Congress. ,,(c) For purposes of this section 'cost in- formation' means information with respect to. alleged cost increases resulting from ac- tion by the Secretary, in such form as to permit the public and the Secretary to make an informed judgment on the validity of the manufacturer's statements. Such term includes both the manufacturer's cost and the cost to retail purchaaers. "(d) The Secretary is authorized to estab- lish rules and regulations prescribing forms and procedures for the submission of cost Information under this section. "(e) Nothing in this section shall be con- strued to restrict the authority of the Sec- retary to obtain or require submission of in- formation under any other provision of this Act." SEC. 106. AGENCY RESPONSIBILITY. The National 'Traffic and Motor Vehicle Safety Act of 1966 (as amended by section 103 of this Act) is amended by adding at the end thereof the following new section: 'SEC. 124. (a) Any interested person may le with the Secretary a petition requesting m (1) to commence a proceeding respect- in the issuance of an order pursuant to sec- tio 103 or to commence a proceeding to de.. term ie whether to issue an order pursuant to sec 'on 152(b) of this Act. "(b) uch petition shall set forth (1) facts which i is claimed establish that an order is necessa, , and (2) a brief description of the substa e of the order which it is claimed Should be ued by the Secretary. "(c) The ecretary may hold a public hearing or may onduct such investigation or proceeding as h deems appropriate in order to determine wh ther or not such petition should be granted. "(d) Within on hundred and twenty days after filing of petition described in subsection .(b), the cretary shall either grant or deny the pet' on. If the Secretary grants such petition, he all promptly com- mence the proceeding equested in the petition. If the Secretary enies such peti- tion he shall publish in the ederal Register his reasons for such denial.' "(e) The remedies under th section shall be in addition to, and not in eu of, other remedies provided by law." SEC. 107. NATIONAL MOTOR VEsil. E SAFETY ADVISORY COUNCIL. Section 104 of the National Tr c and Motor Vehicle Safety Act of 1966 (1 U.S.C. 1393) is amended by inserting "(1)' after "SEc. 104. (a)", and by adding the foll ing new paragraph at the end of subsection : "(2) For the purposes of this section, e term 'representative of the general publ means an individual who (A) is not in th employ of, or holding any official relation to any person who is (1) a manufacturer, dealer, or distributor, or (11) a supplier of any manufacturer, dealer, or distributor, (B) does not own stock or bonds of substantial value in any person described in subpara- graph (A) (i) or (11), and (C) is not in any other manner directly or indirectly pecu- niarly interested in such a person. The Sec- retary shall public the names of the mem- bers of the Council annually and shall designate which members represent the gen- eral public. The Chairman of the Council shall be chosen by the Council from among the members representing the general public." SEC. 108. FUEL SYSTEM INTEGRITY STANDARD. (a) REQUIREMENT FOR STANDARD.?Within ninety days after the effective date of this title, the Secretary of Transportation shall promulgate a motor vehicle safety standard for fuel system integrity applicable to four- wheeled motor vehicles designed to carry ten or fewer passengers in addition to the driver (including all vehicles designated on the date of enactment of this Act as passen- ger cars or multipurpose passenger vehicles in regulations of the Secretary of Transpor- tation under the National Traffic and Motor Vehicle Safety Act of 1966), in order to pro- tect occupants of such vehicles, and other persons, from fuel-fed fires. Such standard shall be effective with respect to all passen- ger motor vehicles produced on or after September 1, 1976. With respect to all other four-wheeled motor vehicles designed to carry ten or fewer passengers in addition to the driver, such standard shall be effective on or after September 1, 1977. In prescribing the standard required by this subsection, the 11-'8141 Secretary shall give consideration to the need to reduce the spread of fire and to limit the escape of fuel. Such standard shall provide as a minimum that fuel spillage shall not exceed one ounce per minute as a result of (1) front fixed barrier impacts at speeds up to 30 mph; (2) rear moving barrier impacts at speeds up to 30 mph; (3) front corner fixed barrier impacts at speeds up to 30 mph; (4) lateral moving barrier impacts at speeds up to 20 mph; and (5) static rollovers. (b) AMENDMENT OR REPEAL OF STANDARD.-- The Secretary may amend or repeal a stand- ard required to be prescribed under sub- section (a) if he determines such amend- ment or repeal will not diminish the level of motor vehicle safety. SEC. 109. TECHNICAL AND CONFORMING AMENDMENTS, (a) DEFINITION OF ,SEcarrART.--Section 102 (10) of the National Traffic and Motor Vehicle Safety Act of 1966 is amended to read as follows: "(10) 'Secretary' means the Secretary of Transportation.". (b) DATE OF ANNUAL REPORT.?The first sentence of section 120(a) of the National Traffic and Motor Vehicle Safety Act of 1966 is amended by striking out "March 1" and inserting in lieu thereof "July 1". SEC. 110. OCCUPANT RESTRAINT SYSTEMS. Section 103(a) of the National Traffic and Motor Vehicle Safety Act of 1966 is amended by inserting "(1)" after "SEC. 103. (a)" and by adding at the end thereof the following new paragraph: "(2) (A) Effective with respect to motor vehicles manufactured after the date of enactment of this paragraph, Federal motor vehicle safety standards may not (except as otherwise provided in pubparagraph (B) ) re- quire that any such vehicle be equipped (1) with a safety-belt interlock system, (ii) with any warning device other than a warning light designed to indicate that safety belts are not fastened, or (hi) with any occuant restraint system other than integrated lap and shoulder safety belts for front outboard occupants and lap belts for other occupants. "(B) Effective with respect to passenger cars manufactured on or after August 16, 976, Federal motor vehicle safety standards all require that each motor vehicle menu- fa turer offer purchasers the option of pur- ch ing either (1) passenger motor vehicles whi are equipped with passive restraint syste s which meet standards prescribed unde this section or (ii) passenger motor vehicle equipped with integrated lap and shoulde belts for front outboard occupants and lap elts for other occuants." (b) Sec on 108(a) (1) (A) of such Act (as so redesign ted by section 103 of this Act) is amended ?by inserting "(i)" after "(A)", and by addi at the end thereof the follow- ing: "(I) fail to offer purchasers the option required by sec ion 103(a) (2) (B) ;". SEC. 111. REDU ON OF MOTOR VEHICLE WEIGIV AND COST. In carrying out Vi Motor Vehicle Safetysponsibilities under the National Traffic a Act of 1966 and thekMotor Vehicle Informa- tion and Cost Savinks Act, the Secretary of Transportation shall take all steps, consist- ent with his responsibilities under those Acts to encourage reduction-of weight and cost of motor vehicles. -- SEC. 112, Section 204(a) of Pubhc Law 89-563 is amended to read as follows:\ "(a) No person shall sell, offer for sale, or introduction for sale, or delltfr for introduc- tion in interstate commerce, any tire or motor vehicle equipped with any tire which has been regrooved, except that the Secretary may by order permit the sale, offer for sale, intro- duction for sale, or delivery for introduction Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 1-113) Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 H CONGRESSIONAL RECORD ? HOUSE August 12, 1974 In Interstate commerce, of regrooved tires and motor vehicles equipped with regrooteel tires which be finds are designed and ccn?. structed in a manner consistent with the purpose of this Act." SEC. 113. EPPECTIVE DATE. The amendments made by this title (other than section 110) shall take effect on the sixtieth day after the date of enactment of this Act. TITLE II- -SCHOOLBUS SAFETY Sac. 201. DEFINITIONS, Section 132 of the National Traffic and Motor Vehicle Safety Act of 1966 is amended by adding at the end thereof the following: "(14) 'schoolbus' means a passenger motor vehicle which is designed to carry more than ten passengers in addition to the driver, and which the Secretary determines is likely to be significantly used for the purpose of trwas- porting primary, preprimary, or secondary school students to or from such schools or events related to such schools; and "(15) 'schoolbus equipment' means equip- ment designed primarily as a system, part, or component of a schoolbus, or any shnila part or component manufactured or sop for replacement or improvement of such sys- tem, part, or component or as an acces/ory or addition 'tc, a schoolbus." Sac. 20E. raftwearoes Screnotares STAN AP.OS. Section 133 of the National Tr Motor Vehiele Safety Act of 1066 is by adding at the end thereof the "(i) (1) (A) Not later than six the, date of enactment of this the Secretary shall publish p motor vehleile safety sten pticable to scrioolbuses and so ment. Such proposed standar Minimum standards for the of performance: "(i) Emergency exits. "(1i) Interior protectio "(iii) Floor strength. (iv) Seating systems. '(v) Crash worthine (including protection ards). "(vi) Vehicle op "(vii) Windows a "(viii) Fuel syste "(5) Not later the date of MAC Secretary shall vehicle safety st minimum strands formance set out of subparagraph which shall ap item of schooibu factured In or States on or af month period promulgation "(2) The Be lions requirin driven by the duction into c SEC, 209. ENFO Section 108 and Motor V amended by following: "(F) to ' the Secretory TITLE LI Section 30 Vehicle In (15 U.S.C. 10 (1) by as 304 (and ret through 3)5, respectively; and (2) by inserting after section 301 the fol- lowing neweeetion; and mended llowtog: nths alter Inaction, d Federal be 3,p- oolbus eqt ip- s shall include Hawing aspects for occupants. of body and frame gainet rollover has- ng systems. windshields. ri fifteen months after of this subsection, the ulgate Federal motor s which Shall provide s for those aspects of per- clauses (I) through (vitt) A) of this paragraph, and y to each schoolbus and equipment which is menu- imported into the United the expiration of the ntne- ich begins on the date ,of such safety standards. etary may prescribe regala- that any schoolbus be test- manufacturer before intro- erce." NT. a) (1) of the National Traffic hicle Safety Act of 1963 is ding at the end thereof the to comply with regulatiors of under section 103(11(21." MOTOR VEHICLE DEMON- ATION PROJECTS . (a) Title III of the Motor mataon and Cost Savings Act 1 et seq.) is amended-- ig;nating sections 302 through fences thereto) as xectione 303 "SPECIAL DEMONSTRATION PROJECTS -Eec. 302. The Secretary shall establish a spectal motor vehicle diagnostic inspection demonstration project to essist in the rapid development and evaluation of advanced in- spec lion, analysis, and di gnostic equipment suit able for use by the S tes iii standardized high volume inspecti aellitles and to eval- uate, the repair chars. :erisoics of motor vehi, cies. Such project hall be designed to fa- cilitate evalnatio repair characteristics by small automotiv repair gierages." The motio was agreed to. The Sene bill was ordered to be read a third tiie, was read the third time, end pass The ktle was amended to read as fol- lows: tA bill to amend the National Traf and Motor Vehicle Safety Act of 196 to authorize appropriations for the fiscn1 years 1975, 1976, .end 1977; to pro- vAe for the remedy of certain defective totor vehicles without charge to the 'owiters thereof; to require that schoolbus safety standards be prescribed; to amend the Motor Vehicle Information and Cost Savings Act to provide for a special demonstration project; and for other put poses." A motion to reconsider was laid on the table. P. similar House bill (H.R. 5529) was lain on the table. WAR CLAIMS ACT AMENDMENTS Mr. STAGGERS. Mr. Speaker, I move that the House resolve itself into the Committee of the Whole House on the State of the Union for the consideration of the Senate bill (S. 1728) to increase benefits provided to American civilian internees in Southeast Asia. The SPEAKER. The question is on the motion offered by the gentleman from West Virginia. The motion was agreed to. IN Tar COMM/TEE or THE WHOLE Accordingly the House resolved itself Into the Committee of the Whole House on the State of the Union for the consid- eration of the Senate bill S. 1728, with Mr. McKay in the Chair. The Clerk read the title of the Senate bil By unanimous consent, the first read- ing; the bin was dispensed with. The CHAIRMAN. Under the rule, the gentleman from West Virginia (Mr. STAGGERS) will be recognized for 30 min- utes, and the gentleman from North Carolina (Mr. BROYHILL) will be recoge nned for 30 minutes. The Chair recognizes the gentleman from West Virginia (Mr. STAGGERS). Mr. STAGGERS. Mr. Chairman, / yield myself such time as / may consume. Vire Chairman, I rise in support of S. 1728, a bill to amend the War Claims Act of 1948. This hill amends two sections of the War Claims Act of 1118 to accomplish different purposes. Section 5 is amended to increase the authorized detention benefit for American civilians during the Vietnam conflict from $60 to $120 per month. The purpose is to raise the de- tention benefits authorized for civilians who are or were being held as prisoners to the same level presently authorized for military personnel. Since American civilian prisoners suffered the same dep- rivations and hardships an military pris- oners, it is a matter of equity to give them the same detention benefit. No appropriations are nvolved, since funds have already been appropriated for payment of the internee benefits. Section 213 of the War Claims Act is amended to awe a first priority to the payment in full of the remaining indi- vidual awards for property losses arising out of World War I/. Then the bill gives a second priority to payment of the re- maining corporate awards for similar losses up to the level of $50,001). Existing law provides for payment of the major part of both individual and corporate awards on a proportional basis. The unpaid corporate awards total $94.7 million; the unpaid individual awards total $6.5 million. Therefore, pro rata payments would distribute most of the remaining funds to the largest eorporate claimants. Payments fer property losses are made from the War Claims Fund, a trust ac- count, on the books of the U.S. Treasury. Therefore, no appropriations are re- quired for this asnendment to the War Claims Act. The War Claims Fund con- sists of the net proceeds of German and Japanese assets seized in the United States during World Was Ir. The sums remaining in. the fund will not be sufficient to pay all remaining claims in full. For this reaso:n, priorities of payment become important. Equitable considerations concerning the nature of the individual losses led to the decision to give priority to their payment; fol- lowed by payment of the smaller remain- ing corporate awards. Mr. GROSS. Mr. Cha?rman, will the gentleman yield? Mr. STAGCMRS. I yield to the gentle- man from Iowa. Mr. GROSS. Mr. Chairman, does not the gentleman from West Virginia think that as a matter of principle it is unfair to pay civilians as militairy personnel are paid under tae circumstances of Viet- nam? Mr. STAGGERS. That is debatable. If the gentleman from Iowa will let me ex- plain, they were there doing jobs, at least, most of them, for the Government, serving their country only in a different capacity. Especially in view of the fact that there are so few civilian internees, only 66, I would say to the gentleman from Iowa that they should receive the same benefit as military personnel. Mr. GROSS. Is it not true that the civilians were there voluntarily? Mr. STAGGERS. Some were and some were not. Some were, as I understand. Mr. GROSS. What is that? Mr. STAGGERS. Some were working for the Government, and were there un- der orders. Mr. GROSS. I do not Una that any of them were drafted as civilians and sent to Vietnam. I do not mart to make an issue of this particularly, but I wonder if we are not here setting a precedent which may live to haunt us later. I think there is a great Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Augtst 12, 1974 CONGRESSIONAL RECORD ? HOUSE H 8143 distinction from one who is voluntarily in Vietnam, and someone who may have been involuntarily there. Mr. STAGGERS. I would say to the gentleman from Iowa that some of these were serving the Government, along with the military personnel, and they were captured. They were doing their jobs just the same as the military personnel" were. Mr. GROSS. That may well be. They are both serving the Government, but on an entirely different basis. Mr. STAGGERS. That is true. And both of them Were interned in the same camps and had to undergo the same kind of treatment. Mr. BROYHILL of North Carolina. Mr. Chairman, I yield myself 5 minutes. Mr. Chairman, if I may have the at- tention of the Members I will try to ex- plain what this bill is about. Back in 1948 the Congress enacted the War Claims Act. What this act did was to permit American citizens and Ameri- can corporations, to receive awards to compensate them for losses that they had .suffered as a result of World War II. The War Claims Fund comes from the as- sets of the enemy nations, the Germans and the Japanese, that were seized dur- ing World War II by the U.S. Govern- ment. 'Under the law that was passed at that tme, Mr. Chairman, each individual or each corporation who had a claim acould come in to the Foreign Claims Settlement Commission and make their claim and prove it. There is no. dispute in this bill over any of these claims or the validity of these claims because the Foreign Claims Settlement Commission has long ago settled these issues and ad- judicated each one of them. Over the years the law has been changed to provide payment to certain categories of claimants. For example, all of those who have suffered death or personal injury were paid in full. All small business claims were paid. One hundred percent of the claims of those with claims under $10,- 4:100 were paid. The claims of charitable organizations were paid in full. As the chairman has pointed out, there is some $101 million in claims still out- standing but only about $20 million available to pay these claims. Over $200 million has been paid out to claimants already and $101,000,000 in claims re- main with about $20 million in prop- erty or assets to satisfy these claims. So the claimants are fighting over the remaining assets of the War Claims Fund. What this bill would do would be to give the first .priority and payment In full to all of the individual ?claims. But lt goes further than that and it says that all of the claims up to $50,000 would be given to the corporate claimants. In other words, we are going to be estab- lishing a principle here in this bill that the claims o companies are inferior to the claims .of incliyiduaLs. But we are going even farther than that. We are saying that the smaller claims of companies, those that have a claim of $50,000 or less have a greater claim than the claims of the larger claimants. I think it is a bad precedent to set and I would urge that the Members vote to send this bill back to the committee for further study and further amendment. Mr. YOUNG of Illinois. Mr. Chair- man, will the gentleman yield? Mr. BROYHILL of North Carolina. I yield to the gentleman from Illinois. Mr. YOUNG of Illinois. Mr. Chairman, if the bill does as the gentleman says, would this not be contrary to the bank- ruptcy law of this country? As I under- stand the bankruptcy law of this coun- try, it does not make any difference be- tween individual claimants and corpo- rate claimants. So long as the claims are on a par, they would all receive equally in distributions. Mr. BROYHILL of North Carolina. It is true that all the claims have been ap- proved by the Foreign Claims Settlement Commission. There is no question as to the validity of the claims. It seems to me only right in principle that all the claim- ants have an equal right to the assets that remain in the fund. Mr: SYMMS. Mr. Chairman, will the gentleman yield? Mr. BROYHILL of North Carolina. I yield to the gentleman from Idaho. Mr. SYMMS. Mr. Chairman, I thank the gentleman for yielding. Mr. Chairman, I associate myself with the remarks of the gentleman. I would like to ask the gentleman fur- ther, is it not true that because of the amendment added to this bill in section 2, 791 of the claims would be paid out to the individuals before consideration is given to the claims of companies and other individuals? I think it is grossly unjust. Mr. BROYHILL of North Carolina. That is correct. These large individual claims would be paid before any corpo- rate claims would be paid. Mr. McCOLLISTER. Mr. Chairman, will the gentleman yield? Mr. BROYHILL of North Carolina. I yield to the gentleman from Nebraska. Mr. McCOLLISTER. Mr. Chairman, I would like to dissociate myself from the remark of the gentleman particularly as it applies to the priorities in allocation of the $20 million available to Satisfy $101 million in claims. I think the principle of giving individ- uals preference over corporations is proper because it seems to me in many cases it is going to be impossible to dis- cover who the individual stockholders of the corporations were at the time the loss was suffered. Does the gentleman not agree that the loss suffered by the cor- poration is a loss suffered by the individ- ual stockholders of that corporation? Mr. BROYHILL of North Carolina. If the corporation has received any tax benefit, that has been taken into con- sideration by the Foreign Claims Settle- ment Commission in making the final award of the claim. Mr. McCOLLISTER. No. What I am referring to is the stockholders of the -corporation at the time the loss was sus- tained are probably very different from the stockholders of that corporation today, and therefore in trying to give to that corporation a prorata satisfaction for its loss, that loss accrues to the bene- fit of the stockholders today and does not do any good at all to the stockholders at the time the loss was sustained. Mr. BROYHILL of North Carolina. I do not understand the gentleman's rea- soning. Let us assume there was a fire insurance proceeding and it had been adjudicated in the court. Is the gentle- man saying that the court would then have the right not to pay out the fire in- surance proceeds just because the stock- holders are different a few years later? Mr. McCOLLISTER. I am saying the stockholders of record at the time the loss was sustained are quite different than the stockholders now, and those stockholders whose value of their stock was reduced, and there is no way we can make them wriole for the loss sustained. It therefore has a tendency to become a windfall benefit for the corporation, whereas individuals who suffered the loss are still known and the losses are more directly payable to them. Mr. YOUNG of Illinois. Mr. Chairman, if the gentleman will yield, I would like to point out to the gentleman from Ne- braska that when one buys a share of stock he has a bundle of rights and the stock shares have claims against thefl assets of the corporation for whatever value the claims may have, and that is part of the rights one pays for, so the stockholders who now own the stock would have bought whatever rights that exist in the corporation through their stock ownership. Accordingly this is not a proper distinction to use in determin- ing priorities in the distribution of as- sets in a fund to claimants against the funds. Mr. SYMMS. Mr. Chairman, will the gentleman yield? Mr. BROYHILL of North Carolina. I yield to the gentleman from Idaho. Mr. SYMMS. I would like to say fur- ther to the gentleman from Nebraska that one of the purposes of corporate en- tities is so that we can have perpetua- tion of business enterprises. This would set a dangerous precedent which would downplay the individuality of the cor- porate interests for a corporate entity which is viewed under the law as an in- dividual and the purpose of it is to have a continuous business enterprise. So I think it matters not who the corporate stockholders are, but the corporate en- tity stands intact. This is a dangerous precedent that should not be established. Mr. BROYHILL of North Carolina. Mr. Chairman, I have several requests for time, so I reserve the balance of my time. Mr. STAGGERS. Mr. Chairman, I yield 5 minutes to the gentleman from Texas (Mr. ECKHARDT) [Mr. ECKHARDT addressed the Com- mittee. His remarks will appear here- after in the Extensions of Remarks.] Mr, BROYHILL of North Carolina. Mr. Chairman, I yield 8 minutes to the gentleman from Tennessee (Mr. KUY- KENDALL ) . (Mr. KUYKENDALL asked and was given permission to revise and extend his remarks.) Mr. KUYKENDALL. Mr. Chairman, we are faced with a problem here much larger, in my opinion, than actually the distributing of a huge amount of money, Approved For Release 2001/08/29 : CIA-RDP751300380R000500380004-6 II 8144 Approved For Release 2001/08/29: CIA-RDP75600380R000500380004-6 CONGRESSION AL RECORD ? HOUSE Aug,tst 12, 1974 when it is compared to some of the bills we have around here, or some of the things we do. For that reason, I think it is incum- bent upon all of us to look at the paece- dent we may be setting here. Since 1948 we have been conducting the war claims settlements of this Nation under the same act. Not too long after that date, the validity of all the claims involved was arrived at, and I regret very much, Mr. Chairman, that at this late date we decide to start trying to make this rather small piece of legislation an instrument of either social justice or tax reform. I do not consider it either one. We have in this bill, the way it isnow written, decided that a corporation for some reason, even though it may be a relatively modest corporation, shall be. as we may say, Outranked in its priority by an individual, even though some of the largest international operatoes in the world today are individuals. John Paul Getty, Bunker Hunt, those people in many instances operate as individ- uals, not as corporations. Believe me, I have been involved in a couple of cor- porations that did not have any money. ' Therefore, the idea that we have put an interpretation upon the law in this bill that sap; an individual, just because he is an individual, regardless of the size of his claim, must be placed ahead of a cor- poration, no matter how small the cor- poration, is, as far as I am concerned, bad law. Mr. Chairman, that is the reason that I am opposing this bill, unless the amend- ment that I am going to introduce .ander the 5-minute rule is accepted. The mat- ter of who wrote off what how long is not the important thing. Mention is being made of the fact that if an individual in business has taken this lose on his income tax years ago, just as Boise Cascade may have, and I am sure they did, are we going to disal- low the individual deduction which could very well have been in the 68 and 75 percent tax bracket and then differ as to the corporate deduction which was in the 43 percent tax bracket? What kind of sense does that make? Mr. Chairman, my last point is this: I will introduce an amendment Which will place this bill back in the Senate bill, back pretty close to the act that we have been operating under since 1948, which will do what the chairman referred to in raising the civilian and military class to the same level. Individual claim- ants will get preference up to $35,000 and thereaf ter all will get the same treatment under the law, as we now have it. Mr. ECKHARDT. Mr, Chairman, will the gentleman yield? Mr. KUYKENDALL, I yield to th e gen- tleman from Texas. Mr. ECKHARDT. Does the gentleman understand that from the information the committee got, vee found nee indi- vidual case where any individual took any tax writeoff because they had. noth- ing to take it against, such as the cor- porations themselves have? Mx. KUYKENDALL. Is the gentleman saying that no individuals making claims own a business? Mr. ECKHARDT. The information we gat is that no claims of loss against taxes had been taken by individuals with re- spect to these losses That is what our committee understands. Mr. KUYKENDALL. The thing I do not understand at all is why we should choose this bill to change a traditional law in this land, which says that an hidividual, regardless of the size he is, and a corporation, regardless of the size it is, are treated as irdividuals under the law. This is what troubles me. Let me tell the Members about some- thing else that is in this bill. Most law considers an individual pro- prietorship or a partnership as an in- dividual. This bill has classified part- nerships the same as corporations, which also flies into the face of the law of the land which we have followed tradition- ally concerning the status of an individual. Mr. McCOLLISTER. Mr. Chairman, will the gentleman yield? Mr. KUYKENDA1L. I yield to the gentleman from Nebraska. Mr. McCOLLISTEIL. Mr. Chairman, in response to the question of why we did this, it is very simple: Because we saw there were insufficient assets to pay the claims, and in view of the facts which pertained Co this case, we simply felt equity would be better served by setting the priorities which we have set, first, by paying the individual claims, and, second, by paying the corporate claims up to $50,000. This in effect gave priority to the smaller corporations which could not afford to sustain the loss as well as the trigger corporations. Mr. KUYKENDALL. Mr. Chairman, I will ask the 'gentleman this question: Is it not true that the small individual claims and the small corporate claims have already been settled? Mr. McCOLLISTER. The small in- dividual claims have been settled, but the small corporate claims have not been settled. Mr. KUYKENDALL. Mr. Chairman, is :.t true the corporate claims are ? the larger claims, and that only the individ- aal claims have been settled? Mr. BROYHILL of North Carolina. Mr. Chairman, if the gentleman will yield, the small basiness claims have been settled. Mr. KUYIMNDAII,L. The small cor- porate claims and the small business claims have both been settled? Mr. BROYHILL of North Carolina. Under $10,0011. Mr. KUYEENDALL. So what we have left here are the large claims, the large corporate and individual claims, so I think that , makes the ground for this proposal even more shaky, instead of less so. Mr. STAGGERS Mr. Chairman, I yield 5 minutes to the chairman of the subcommittee, the gentleman from California (Mr. Mof.$). [Mr. MOSS addressed the Committee. His remarks will appear hereafter in the Extensions of Remarks.] Mr. SMITH of New York. Mr. Chair- man, I -strongly support the passage of S. 1728 as reported by the Committee on Interstate and Foreign ,Commerce. One provision of S. 1'728 deals with war claims awards arising out of losses suf- fered by U.S. citizens el' tring World War II. This prevision would give individual awardholders under the War Claims Act priority fovea corporate awardholders in further payments in compensation for their World War II losses. This language was passed by the House in 1969,but was later dropped in conference. Because this provision is fully justified and because its enactment is of great importance to a large number of Amei ican citizens who lost all or very nearly all they had as a result of the war, I introduced a bill, H.R. 4896, to assure that they would he wholly compensated for losses that have now gone uncompensated for over 30 years. I am pleased that the Interstate and Foreign Commerce Committee has included the text of my bill as section 2 of S. 1728. The purpose of the War Claims Act of 1948 was. to compensate U.S. citizens for the losses they suffered in World Wax IL Every citizen claiming an award was required to prove his claim before the Foreign Claims Settlement Commis- sion. All the awardholders who would benefit from this bill have already proved their claims and been granted an award. Most awardholders have already been paid in full under previous priority cate- gories created by the Congress. There re- main unpaid portions of awards to 186 individuals totaling i65 million and 161 corporations totaling $94.7 million. The amount remaining in the War Clahns Fund, however, is far too small to pay all these awards in full. Under present law, the vast majority of the money in the fund would go to corporate awardholders, and many individuals would receive only a few cents on the dollar for their awards. The enactment of 5 1728 is thus nec- essary to assure that these individuals who have for so long lacked full com- pensation will finally receive their just awards. There are many reasons why the individual awardholders are entitled to this priority: First. Most corporate awardholders took very substantial tax deductions as a result of 'their war loises. The corporate awardholders with balances in excess of $500,000 took a collective total of more than $35 million in tax deductions and have for more than 30 years had the use of the money they saved. No individual awardholder took a tax deduction. Thus, these tax benefits, combined with pre- vious payments from the war claims fund, have allowed the corporate award- holders to recover a substantially greater percentage of their actual loss than have the individuals. Second. The losses of the individuals were of far greater personal and eco- nomic significance to them than the cor- porate losses were to the corporate awardholders. The individuals lost their homes, their small family businesses, and their personal belongings, while the losses to the corporations :involved only a small fraction of the total corporate assets of the awardholders. Approved For Release 2001/08/29: CIA-RDP75600380R000500380004-6 Augrcst 12, 19fTproved For Release 2001/08/29 : CIA-RDP75B00380R000500380004-6 CONGRESSIONAL RECORD ?HOUSE Third. A high percentage of the in- dividual awardholders are elderly persons beyond their productive years who live on Knell fixed incomes. Many of them spent most of their working years autside the United States and hence receive little or no social security benefits. These peo- ple are relying on the payment of their war claims awards to provide them a final financial stake to support them in their declining years. By contrast, at least 96 percent of the unpaid corporate awards are held by com,panies whose stock or whose parent company's stock is traded on the New York or American Stock Exchanges. All small businesses have already been paid in full under a previous priority. Many of the remain- ing corporate awardholders are among the biggest corporations in the country, such as General Motors, Exxon, Mobil, and LT. & T. Recovery of their awards would have little effect on their financial security. Fourth. In many cases, the present stockholders of the corporate award- holders have little or no relation to those who actually suffered the loss. In many cases, the corporation holding the award is not even the same company that suf- i.ered the loss. For xample, in one case, involving one of the largest corporate awards, the company that suffered the loss was a subsidiary of an American cor- poration which long ago wrote the sub- sidiary's assets down to zero. In 1969, the present awardholder acquired the stock of the parent corporation, paying abso- lutely nothing for the stock of the sub- sidiary that had suffered the loss. The present awardholder?which not only sclid not suffer the loss but paid nothing for the stock of the company that did? thus would receive a windfall by reason of any further payments. There are numerous instances among the corporate awards in which the company that ac- tually suffered the loss hag' long since been acquired by the present award- holder. Even in cases in which the pres- ent corporate awardholder was the com- pany that suffered the loss, the present stockholders are a very different group from those that held the stock at the time of the loss more than 30 years ago. By contrast, the individual awards are all held by the persons who suffered the loss or by members of the family that suffered the loss. Another section of this bill would pro- vide benefits for American civilians who were held as prisoners by North Vietnam during the Vietnam war at the same level as those for military personnel who were Prisoners of war. These civilians were employees of agencies of the U.S. Gov- ernment or U.S. Government contrac- tors and suffered as long and as griev- ously as their military counterparts. However, because of an inequity in the present War Claims Act, their benefits are less than half of those received by military personnel. S. 1728 would correct this inequity and allow them to be com- pensated at the same rate as military Personnel. Finally, I would like to stress that no provision of this bill requires any ap- propriation by the Congress or increases Government spending in any way. The funds from which payment of World War II awards is to be made consist of the proceeds of the sale of assets of enemy nationals seized by the U.S. Gov- ernment during World War II under the Trading With the Enemy Act. The funds to pay Vietnam civilian internees are derived from an appropriation made in fiscal year 1973. Thus, enactment of S. 1728 would have no impact on Federal spending. These are only some of the reasons' why enactment of S. 1728 would be Just and proper. I urge the House to act favorably on this bill. Mr. STAGGERS. Mr. Chairman, I yield such time as he may consume to the gentleman from Nebraska (Mr. McCor- LISTER) . (Mr. McCOLLISTER asked and was given permission to revise and extend his remarks.) Mr. McCOLLISTER. Mr. Chairman, I would like to voice my support for the enactment of S. 1728. I am a member of the Subcommittee on Commerce and Fi- nance that considered and unanimously reported this bill, and have given close attention to the issues the bill addresses. S. 1728 was overwhelmingly approved after 2 days of markup by the Committee on Interstate and Foreign Commerce. In addition to the arguments cited by other Members in support of S. 1728, I believe there are further reasons for its enactment: First. As has been mentioned previ- ously, the corporate awardholders took large tax deductions from their U.S. in- come taxes as a result of their war losses while individuals took no such deduc- tions. It is also true that many corporate awardholders received substantial tax and other benefits from foreign govern- ments after the war as incentives for reestablishing their operations in those countries. These benefits, which further compensated the corporations for their losses, were in no way taken into account in the calculation of their war claims awards. Such benefits were unavailable to the individual awardholders. Second. Many of the corporate award- holders are insurance companies that insured risks overseas at premium rates to reflect the risks of war. These com- panies were then subrogated to the rights of the insured. The substantial premiums received by these insurance companies were not taken account of in the calcu- lation of war claims awards. No individ- ual awardholder is in a comparable position. Third. Full payment of the individual awards will not substantially affect the amounts that will be available to pay corporate awards. The corporate awards total about $94.7 million. There will be only about $20 million at most available for payment of all awards?both cor- porate and individual. Thus, even under existing law, the corporations will re- ceive at most about 20 cents on the dollar. Since the total amount payable to individuals is only $6.5 million, giving a priority to individuals will reduce the corporate recovery by only a few cents on the dollar. Fourth. The corporate awards repre- sent a greater percentage of the actual H 8.145 losses of the corporate awardholders than the individual awards represent of the actual losses of the individuals. In the granting of awards, the Foreign Claims Settlement Commission required docu- mentary proof of the loss for which an award was sought. Many individuals who suffered property losses also lost their documentary proof of ownership in the war. Large U.S. corporations that main- tained extensive records in this country did not have similar problems and hence were able to document a much higher percentage of their actual loss than were individuals. Fifth. All the individual awardholders are U.S. citizens. The War Claims Act required that an individual be a 'U.S. citizen at the time of his loss in order to be eligible for an award. By contrast, a corporation need only have been in- corporated in the United States and 50 percent of its assets owned by U.S. na- tionals in order to qualify. A significant portion of the stock of many corporate awardholders is held by foreign na- tionals. Since the basic purpose of the War Claims Act was to compensate U.S. citizens for their losses, this purpose is more consistently served by allowing in- dividual awardholders, all of whom are U.S. citizens, a priority. These reasons all support the enact- ment of a priority for individuals in the payment of World War II war claims awards. In addition to this priority, the Com- mittee on Interstate and Foreign Com- merce added an additional priority cate- gory through an amendment that I sponsored. Under this amendment, after payment to the individuals, all corporate awards would be paid in equal amounts up to $50,000 and after that amount on a pro rata basis. This amendment does not discriminate against any corporate awardholders since all corporations would receive $50,000 per award even if their awards are larger than that amount. Creation of this priority would benefit the smaller corporate awardhold- ers who, in general, are substantially smaller companies than those with the larger awards. This priority would enable 66 of the 161 corporate awardholders to be paid in full and the further assets in the War Claims Fund would then be divided pro rata among the remaining 95 corporate awardholders. While crea- tion of this priority would reduce some- what the amounts that would be paid to the very largest corporate awardholders, its effect would not be great since even under existing law these awardholders would receive only a fraction of their outstanding balances. Virtually all the corporate awardholders whose recovery would be reduced are among the Nation's largest corporations, such as Exxon, Mobil, and I.T. & T., and the amount by which their recovery would be reduced would be negligible in terms of their total assets. I would also like to express my support for the provision of S. 1728 that gives civilian U.S. citizens who were held pris- oner in North Vietnam during the Viet- nam war benefits on a par with those available to military personnel who were held prisoner. These civilians also served Approved For Release 2001/08/29 : CIA-RDP75B00380R000500380004-6 11 8146 Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 CONGRESSIONAL RECORD ? HOUSE August 12,1974 their country and suffered as acutely as the military men in enemy prison camps. We owe them at least this much con- sideration. Finally, I would like to point out ehat this bill envolves neither an additional appropriation of funds or an increase in Federal spending. The moneys which will be disbursed to World War II award- holders are derived from the sale of the assets of enemy nationals seized by the U.S. Government during World War II and were not raised from tax dollars. The funds to pay the Vietnam civilian in- ternees are derived from an appropria- tion for fiscal year 1973. Thus, S. 1728 is in no way an inflationary bill. For these reasons, I urge the passage of S. 1728 as reported by the Committee on Interstate and Foreign Commerce. Mr. STAGGERS. Mr. Chairman, I have no further requests for time. Mr. saon-tru of North Carolina. Mr. Chairman, I have no further requests for time. The alAIRMAN. Pursuant to the rule, the Clerk will now read the committee amendment in the nature of a substitute printed in the reported bill as an orginal bill for the purpose of amendment. The Clerk read as follows: Be it enacted by the Senate and House of Representatives Of the United SI ai:es of America in Congress assembled, That aection 5(i) (8) of the War Claims Act of 1948 (50 App. 17.8 0. 2001(1) (3)) is amended by strik- ing out "$60" and inserting in lieu thereof -$1511". SEC. 2. (a) Section 213(a) (3) of the War Claims Act of 1948 (50 App. U.S.C. 20171(s) i 3) ) is amended to read as follows: "(3)Chereafter, payments from time to time on account of the other awards made to individuals pursuant to section 202 and not compensated in full under paragraph (1) or (2) of this subsection in an ()mount which shall be the same for each award or in the amount of the award, whickever is less. The total payment pursuant to this paragraph on account of any award shall not exceed $500,000.". (b) &potion 213(a) of such Act is amended by redesignating paragraph (4) as paragraph (5) and inserting after paragraph ;3) the following new paragraph: "(4) Thereafter, payments from -Arne to time or. account Of the other awatts made to corporations pursuant to section 202 and not compensated in full under paragraph (1) or (2) cif this subsection in an amount which shall be the same for each award or in the amount of the award, whichever is less. The total payment pursuant to this paragraph on account of any award shall not exceed $50,000 ". Mr. STAGGERS (during the reading). Mr. Chairman, I ask unanimous consent that the bill be considered as read, printed in the RECORD, and cpen to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from West. Virginia? There was no objection. AMENDMENT IN THE NATURE OF iT.NISTIIITTE OFFERED BY MR. KUTMENDALL Mr. KUYKENDALL. Mr. Chairman, I offer an amendment in the nature of a substitute, The Clerk read as follows: Ainendment in the nature of a substitute offered by Mr. KUYKENDALL! Striko out all after the enacting clause and insert in lieu thereof the following: That section 5(1) (3) of the War Claims Act of 1948 (50 App. U.S.C. 2004(1) (3) ) is amended to substitute -slur for "$80". (Mr, KUYKENDALL asked and was given permission to revise and extend his remarks.) Mr. KITYKENDALL. Mr. Chairman, I shall not take the full 5 minutes, since I feel that this amendment was debated to a great extent during the debate. The amendment technically does this: 'It mentions the nem of the bill men- tioned by the Chairman earlier that it puts the civilian and the military claim- ant under the War Claims Act in the same category. To make it clear as to what the meaning of those of us who are supporting this particular amend- ment feel that the subcommittee in its desire to create an across-the-board jostice did?and my great regard for the members of the subcommittee in attempting this is riot lessened by the face that I feel that in so doing they have made a serious strike at a basic constitutional fact, and that is under cur laws because of the vast differences in the sizes of individual proprietorship and of partnerships and of corporations and of simple individuals themselves, people who have written our law found it within their ideas of justice neces- eary to require that all be treated the same. I am quite sure that the subcommittee attempted to achieve justice, but it is my considered judgment and it is my fear. Mr. Chairman, that in their attempts to achieve justice they have done damage ;o a constitutional fact that is more seri- ous than the injustices that existed un- der the present law. So I urge the amendment to be adopted. Mr. SYMMS. Mr. Chairman, will the gentleman yield? Mr. KUYIECENDALL. I yield to the gentleman from Idaho. (Mr. SYMMS asked and was given permission to revise and extend his remarks,) Mr. SYMMS. Mr. Chairman, I thank the gentleman from Tennessee for yield- ing. I associate myself with his remarks. Mr. Chairman, I am in support of the amendment. Mr. Chairman, I have no argument with the original intent of the 1974 War Claims Act Amendment as passed by the Senate. It is very appropriate that our American civilian internees in Southeast Asia receive this increase in assistance, particularly when one considers that it brings them more in line with the com- pensation awarded, our military person- nel who suffered the same detention. I commend the House for its humane ac- tion in consideration of this provision. I cannot agree with my colleagues who have been instrumental in adding sec- tion 2 to the legislation passed by the Senate. It is discriminatory. It is unjust. It is one of the most damaging prece- dents proposed, in this Congress in a good long time. Section 2 provides that unpaid bal- ances on World War II claims to in- dividual awardhoiders shall be satisfied before payments are made on legitimate corporation claim's. The State Depart- ment, the Foreign Claims Settlement Commission, and the Office of Manage- ment and Budget all 'Wattled against this amendment in our House commit- tee hearings. The Senate never even ad- dressed she proposal this year although it did defeat such a move In 1970. In a nutshell, we are on the edge of express- ing public policy in the House of Repre- sentatives which holds the legitimate claims of a business to be Inferior to those of an individual. Were any one of you to have a court decision in which you were personally involved take such a direction, the hue -and cry could be heard across the country. Section 2 further restricts payments to corporations, providing that each company shall receive no more than $50,000, regardless of the full unsatisfied amount of their dieing in other words, the more a. company )ost, the less en- titled it is to reimbursement. Even the House has never addressed itself to this concept in public hearings. The amendment was added in the com- mittee without benefit of hearing and without; consultation with the agencies involved. There is injustice aplenty in that lan- guage whic:a holds the claims of corpo- rations to be inferior under the law of those of individuals. This additional language compounds that injustice by favoring small corporate losses over large corporate losses, It is a frightening prec- edent. I urge this body to consider care- fully the consequences of such action. I urge your support this afternoon of the amendment to restore the original Senate language, which limits itself to the very appropriate cause of assisting our American civilian internees in Southeast Asia. I further urge that the Committee on Interstate and Foreign Commerce readdress itself to the ques- tion of unsettled war claims in a more equitable manner consistent with our American zoncent of justice. (Mr. MOSS asked and was given per- mission to revise and extend his remarks.) Mr. MOSS. Mr. Chairman, I rise in op- position to the amendment. I would point out, Mr. Chairman, that all this does is to leave the present fund available at the rate of $35,000 for each claimant without regard to any of the underlying facts as io who was an in- surance company, as mentioned by the gentleman from Texas, that took its losses out of its premiums which it had calculated as sufficient to cover the losses. They will get their $35,000. If it is an individual who is totally wiped out, he will get his $35,000. If it is someone who picked up a bit of corporate prop- erty that had no value al the time, as Boise Cascade did, they will get their $35,000. It is represented that this is an equi- table way of dealing with this, I submit it is not. I submit it is superficially an equitable way, but upon examination of the facts in any depth at all we will see it misses an equitable resolution of this by many, many yards. It is bad legislation, it is not good leg- islation, it was not wise when we wrote it. This was the opportunity to clear it up and to deal a little more equitably with persons who suffered serious losses Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2001/08/29 : CIA-RDP751300380R000500380004-6 Augnst 10 1974 CONGRESSIONAL RECORD ?HOUSE I would hope that the amendment of- fered by the gentleman from Tennessee would not be agreed to. Mr. SMITH of New York. Mr. Chair- man, will the gentleman yield? Mr. MOSS. I yield to the gentleman from New York. , Mr. SMITH of New York. Mr. Chair- man, I associate myself with the remarks of the gentleman. I would hope the amendment offered by the gentleman from Tennessee will not be adopted, be- cause he effect of it is to return the war claims distribution to exactly where it Is today. As the gentleman has pointed out, this is unfair to inclividual,s who have per- sonally lost more of their substance than some of the larger companies. I would like to get back for a moment to the tax point. I understand from the gentleman from Texas that no individ- uals appeared before the committee who had taken any tax writeoffs, but corpora- tions apparently had taken some $35 million of tax losses which had not been considered in awarding the war claims to them. Is that correct? Mr. MOSS, That is correct. Mr. Chairman, I will yield to the gen- tleman from Texas if he would like to respond personally. Does the genq from Texas (Mr. Ecx?ninun) care to re- spond to the tax question which is pro- pounded as to the fact that no individual we could find,d0ring the hearings had taken a tax writeoif While the corpora- tions had taken in excess of $35 million In tax losses? Mr. ECKHARDT. That is what ap- peared in the hearings. Of course, indi- viduals usually did not have anything to take it off against. Mr. SMITE of New York. Mr. Chair- man, will the gentleman yield further? Mr. MOSS. I yield. Mr. SMITH of ,,New York. One other statement the gentleman just made for which I wanted, confirmation is that the tax writeoff, of course, of some $35 mil- lion was not taken into consideration in making the war claims award; is that correct? Mr. MOSS. Mr. Chairragn, I yield to the gentleman from Texas for the pur- pose of responding to that 'question. Mr. ECKHARDT. Vie corporation had to take into account the U.S. settlement taxes. Mr. SMITH of New York. I thank the gentleman. Mr. YOUNG of lUos, Mr. Chairman, I move to strike the requisite number of words. I would like to rise in support of the amendment. I regret that we have spent so much time debating this bill; but I do think that we should ,not overlook what I believe is the appropriate role for Con- gress with respect to ,the War Claims Act, It ?has_ been. Staled that we have roughly $20 million to divide up among $100 million of claims. In effect, we have what I refer to OS a, bankruptcy situa- tion, 'rhe bill without gle, amendment, woad .Ove a preference to individuals in the payment of the, Ir claims, before corporations. This preference would ex- tend to claims over $35,000. The amendment of the gentleman from Tennessee, as I understand it, would eliminate any such preference with respect to corporations and indi- viduals. Those claims would all be treated on a pro rata basis, which is my understanding of the version that the Senate bill also provides. Now, I do not think it is appropriate for the House to get into a determina- tion of individual claims. I do not think it is the purpose of the House to do that. Mr. MOSS. Mr. Chairman, will the gentleman yield? Mr. YOUNG of Illinois. I yield to the gentleman from California. Mr. 'MOSS. The gentleman has stated there are $20 million. I used the figure $11 million to $14 million. I am correct, am I not, in that figure there are adju- dicated claims approximating some- where between $6 million and $9 million now in process, so that the residual fund which is addressed by the language of this bill addresses itself only to between $11 million and $14 million. Mr. YOUNG of Illinois. I thank the gentleman and I accept that. The point I was using the figures for was simply to illustrate we have not enough money to pay all the claims, and on that the gentleman from California agrees with me. The point I am speaking to is that this House is not the appropriate body to try to determine individual claims. I regret that the gentleman from Texas singled out a particular company, Boise Cascade, to describe certain information set forth in an annual report. It is very difficult to evaluate that type of information. We are not the body to do it. That is what the Foreign Claims Settlement Commis- sion is supposed to do. ? I do think if the House of Representa- tives feels that individuals should have a claim priority over corporations, then the House should offer amendments like this to the bankruptcy laws. The bank- ruptcy laws, of course, have been on the books for many, many years. They pro- vide no such distinction between claims of individuals and corporations. They make no such discrimination. The rea- son they do not make such discrimina- tion is that it would not be equitable. Under our Constitution corporations are citizens, the same as individuals. We all recognize the fact that corporations are artificial entities, and they are owned by individuals, so there is no valid basis to discriminate against individuals who are stockholders of corporations, if the cor- porations have valid legitimate claims, compared to individuals who own prop- erty in their own individual names. I think that the House of Representa- tives would be well advised to accept the well thought out language of the Senate and to have all claims over $35,000 pro- rated in amount. We should try to avoid the political implications of corporation versus individual. I think that is not a proper basis for us to act upon, for the purpose of discriminating between claimants. H 8147 Mr. McCOLLISTER. Mr. Chairman, will the gentleman yield? Mr. YOUNG of Illinois. I yield to the gentleman from Nebraska. Mr. McCOLLISTER. Mr. Chairman, does the gentleman from Illinois know that the income tax law, when it consid- ers corporate taxes, imposes a surtax over $25,000 to earnings of over $25,000, giving thereby some preference to the stockholders of smaller corporations? Is not that somewhat comparable to what the committee and the Congress is doing in this instance? Mr. YOUNG of Illinois. No, I do not believe that such an analogy is relevant to the issue of the priority of claims in the distribution of a fund where there are more claims than there are assets. I think the tax laws have certain social and other purposes in their enactment, and here we are dealing with claims, I do not think it appropriate to compare the two. [Mr. McCOLLISTER addressed the Committee. His remarks will appear hereafter in the Extensions of Remarks.] Mr. STAGGERS. Mr. Chairman, I rise in opposition to the amendment. I do not believe it is fair, and I ask that it be defeated. The CHAIRMAN. The question is on the amendment in the nature of a substi- tute offered by the gentleman from Tennessee (Mr. KITICKENDALL). The amendment in the nature of a substitute was rejected. The CHAIRMAN. The question is on the committee amendment in the nature of a substitute. The committee amendment in the na- ture of a substitute was agreed to. The CHAIRMAN. Under the rule, the Committee rises. Accordingly the Committee rose; and the Speaker having resumed the Chair, Mr. McKAy, Chairman of the Committee of the Whole House on the State of the Union, reported that that Committee, having had under consideration the Sen- ate bill (S. 1728) to increase benefits provided to American civilian internees in Southeast Asia, pursuant to House Resolution 1306, he reported the bill back to the House with an amendment adopted by the Committee of the Whole. The SPEAKER. Under the rule, the previous question is ordered. The question is on the amendment. The amendment was agreed to. The SPEAKER The question is on the third reading of the bill. The bill was ordered to be read a thi,rd time, and was read the third time. The SPEAKER. The question is on the passage of the bill. The question was taken': and the Speaker announced the ayes appeared to have it. Mr. ASHBROOK. Mr. Speaker, I object to the vote on the ground that a quorum Is not present and make the point of order that a quorum is not present. The SPEAKER. Evidently a quorum Is not present. The Sergeant at Arms will notify ab- sent Members. The vote was, taken by electronic de- Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 1181418 Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 CONGRESSIONAL RECORD ? HOUSE August 1211,197 vice, and there were?yeas 368, nays 17, not voting 49, as follows: !Roll No. 4771 'TEAS--368 Abdnor Abzug Adams Addable) Andersen, Calif. Anderson, In. Andreens, Andrews, N. Da. AnnunziO Archer Arends Armstrong Ashbrook Ashley Aspin Badillo Befalls Baker Barrett Bauman Bell Bennett- Bergland Bevill Biaggi Bleeder Bingham Inaektnern Beggs Baena 13caling Brad= ae Bray Breaux Breckinridge Brinkley Brooks BroOmileld Brotzmazi Brown, Ohio Broyhill, N.C. Broyhill, Va. Buchanan BUrgener Burke, Calif. Burke., Ina. Burke, Mass. Burlescen 'Tex. BurlisOn, Mo. Burton, John Burton, Phillip Butler Byron Camp Carney, Ohio Carter Casey, Tex. Cederberg Chamkerlain Clancy Clark Clausen, Don H. Clawson, Del clay Cleveland Cochren Cohen Collins, Ill. Conable Dorn Downing Drinan Duncan du Pont Eckhardt Edward!, Ala. Edwards, Calif. Eilberg Erlenborn Each Eshleman Evans, Colo Fascell Findley Fish Fisher Flood Flowers Foley Ford Forsythe Fountain P'isser Frelinghuysen Frenzel Frey Froehlich Fulton Fuqua Claydos Gettys Glairno Gibbons Oilmen Ginn Onnenlez C3oodling Grasso Green, Oreg. Green, Pa. Griffiths Graver Gude Guyer Haley Hamilton Hammer- schmidt Hanley Ilanrahan Hansen, Idaho Harrington Harsha Hastings Hawkins Hays Hechler, W. Va, Heckler, Mass. Heinz Helstoskl Henderson Hicks Hillis Hinshaw ? Hogan Holiheld Holt Holtzman Horton Roemer Floweret Conlart }Indent Conte Hungate Conyers Hun Corma a Hutchinson Cotter Ichord Cougb..in Jarman Cronir Johnson, Calif. Daniel, Dan Johnson, Colo, Daniel, Robert Johnson, Pa. W., Jr, Jones, Ala Daniels, Jones, N.C. Dominick V. Jones, Okla. Danielson Jordan Davis, MC. Keith Davis, Wis. Kastenmeier de la Garza Hazen Delaney Kemp Delleeback Ketchum Dellinna King Denhcleci Inluezynski Dennis Koch Dent Kyros Derwinsti Lagornarsino Devine Latta Dkattaaa Penman Diggs Lent Donol,ne Long, La. Lott Lujan Luken McCleary McCloskey MeCollister efeCormack McEweit McFall McKay McKim key Macdor.ald Madder Madigan Mahon Mai-twig Martin, Nebr. Martin, N.C. Mathias, Calif. Mathis Oa. Matennete a MazzoT1 Meeds ?delete, Metcalfe Mezvin sky Michel Milford Mills lefirneh Mink Mitchel, effe. Mttehel, N Mizell Moakley Mollohin Montgomery Moorhead, Pa. Morgan Mosher Moss Murphy, ill. Murtha, Myers Natcher Nedel Nelsen Nichols Nix Obey O'Brien O'Hara O'Neill Owens Parris Patma:a Patten Perkin ; Pettis Peyser Pickle Pike Poage Powell, Mtn Preyer Price, 111 Price, 'rex. Pritchard (One Railsb laic Randall Range Rees Begun, Reuss Rhodes Riegle Maude? Retteri s Rob] Ilion, yr.. Rodin.) Roe Rogers Roncallo, Wyo. Romano, N.Y. Rooney, Pc Rose Rosen that Rostotkowski Roust Roussolot Royhal Runnels Rupp( Ruth Ryan St Get main Sandman Sart sin Sarhanes Satterfield Scherle Schneebeli Schroeder Selaelius Seiber/Ing Shinier), Shriver Sisk Skubitz Slack Smith, Iowa Smith, N.Y. Snyder Spence Staggers Stanton, J. William Stanton, James V. Stark Steed Steele Steelman Steiger, Wis., Stephens Stokes Bowen Chappell Collins, Tex. Crane Evins, Tenn, Gross Alexander Beard Blatt:nit Brasco Brown, Calif. Brown, Mich. Carey, N.Y. Chisholm Collier Culver Davis, Ga. Dingell Dulski Flynt Cloldweeer Gray Oubser Stratton White Stuble eneld Whitehurtt Stucide Whitten Sullivan Widnall Symington Wilson, Bob Talcott Wilson, Taylor. Mo. Charles H., Taylor, N.C. Calif. Thompson, N.J. Wilson, Thomson, Wis. Charles, Tex. Thone Winn TIernr5 Wolff Towell Nev. Wright Trestles* Wyatt Udall Wydler Ullman Wylie Van Merlin Wyman Yates Yatron Young, Alaska Young, Fla. Young, Ill. Young, Tea. Zablocki Zion Zwach Vander Jag,t Vander Veen Vanik Veysey Vigori to Waggonner Waldie Walsh Warne] er Ware Whalen NAYS-1'7 Huber Kuykendall Landgrebe Long, Md. Manse y Mann NOT VOTING-49 Cluntet Podell Hanna Quillen Hansen, Wash. Rarick Hebert Reid Jones Tenn. Robison, N.Y. Landrum Rooney, N ,Y. Leggett Roy Litton Shout) McDade Sikes McSpadden Stuckey Mayne Teague Minsh all, Ohio Thorsatoe Moorhead, Treen Calif. Wiggins Marne y. N.Y. Williams Penman Young, Oa, Pepper Miller Shuster Steiger, Ariz. Symms Young, S.C. So the bill was passed. The Clerk announced the following pairs: Mr. Hebert with Mr. Stuckey. Mr. Muria/trot New York with Mr. Letgetl. Mr. Flynt with Mr. Blatnik. Mr. Rooney of New York with Mr. Brown of California. Mr. Gingen with Mr. Gray. Mr. Carey of New York with Mr. Landrum. Mrs. Chisholm wit:a Mrs. Hansen of Wash- ington. ' Mr. Jones of Tennessee with Mr. Litton, Mr. Alexander with Mr. McSpadden. Mr. Podell with Mr . McDade. Mr. Peppet with Mr. Mayne. Mr. Roy with Mr. Beard, Mr. Young of Georgia With Mr. Culver. Mr,Passman with Mr. Collier. Mr. Hanna with Mr. Brown of Michigan. Mr. Renck with Mr. Gulaner. Mr. Reid with Mr. Goldwater. Mr. Gunter with Mr. Minshall of Ohio. Mr. Dulski with Mr. Moorhead of Cali- fornia. Mr. Davis of Georgia with Mr. Shoup. Mr. Teague with Mr. Treen. Mr. Sikes with Mr. Wiggins. Mr. Thornton with Mr. Williams. The result of the vote was announced as above recorded. The title was emended so as to read: "An Act to amend the War Claims Act Of 1948 to increase benefits provided to American civilian internees In Southeast Asia and to provide for additional pay- merits on awards made to individuals and corporations Under that Act.". A motion to reconsider was laid on the table. FEDERAL ELECTION CAMPAIGN ACT AMENDMENTS OF 1974 The SPEAR. Under a previous order of the House, the gentleman from New York (Mr. Ketttr) is recognized for 20 minutes. Mr. KEMP. Mr. Speaker, it has been a long and arduous road to the achieve- ment of substantive, practical cam- paign reform. I had hoped, when I first introduced legislation establishing an independent Federal Election Commis- sion in 1973, that meaningful .reform would be forthcoming in the first ses- sion of the 93d Congress. Finally, we have taken legislative action to help correct campaign abuses and corruption which have surfaced with increased reg- ularity in the past several years. Certainty no issue laas yielded such broad bipartisan support. Illegal cam- paign practices, unethical tactics, dirty tricks, and influence peddling in the 1972 and prior campaign: have brought de- mands from the American people for positive legislative itetiem. The public's wishes have been trans- lated into action. Each American believes that our political system must be ethical to be fair. Each American insists on his or her right to be informed about the campaign practices of the candidates for Which he must vote; each American wants candidates to compete equitably for public office. THE NE 5 EMs With this in mind, the House of Rep- resentatives has acted. The legislation drafted by the Committee on House Ad- ministration and amended by the full House limits contrtbetions to $1,000 per person and $5,000 for broad-based pobt- ical committees. Individuals can contrib- ute no more than $25.000 to all candi- dates and committees in any one calendar year. Contributions are prohibited by foreign nationals and cash contributions cannot exceed $100, per person. These provision; should help restore public confidence by eliminating or reducing public suspicion that candidates are be- ing "bought" or influenced by large campaign contribu tens. In addition, the bill planes limits on the amount of expeeditures a candidate may maim: $10 mileon for nomination for President, $20 million in a general election for President, 5 cents times the populations of the eeographical area or $75,000 for the Senate?whichever is greater?and $60,001 for House races. The $60,C00 limitation -figure was arrived at as a irompromise between the Com- mittee on House Administration recom- mendation of $75,00o and a lower figure advocated by several colleagues and myself. Other provision; of the bill include the requirement time all candidates des- ignate a principal or central campaigr committee. The reports of all other com- mittees supporting that candidate mun be fled with the t Amine' committee which in turn eornni es these reports anc sends them to the appropriate super- visory oficer. All texpeenditures made or behalf of a eandidate must be made through the principal campaign com- mittee. Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 ST-71-1 Approved For Release 2001/08/29 : CIA-RDP751300380R000500380004-6 December 17, 1974 CONGRESSIONAL RECORD?HOUSE facilities close inshore, and with the approaching end of the session we must accept this conference action or not have a deep port bill. But I would like to express my dis- satisfaction with the final product and the methods that produced it. By a sub- stantial margin, and with full debate on the merits of both bills, this House adopted the Merchant Marine and Fisheries Committee version over that of the Public Works Committee. Then, with the appointment of a majority of the House conferees from supporters of the public works bill, it was assured that the version adopted by the House would never receive adequate consideration in the conference. This bill before us now lacks clear-cut administrative authority, has numerous veto opportunities, provides a series of special preferential arrangements, and generally is going to be very difficult to work with. It culminates a tortured, wasteful, and time-consuming legislative process that has delayed implementation of this vital portion of our energy plans for nearly 2 years. If Congress is to effectively address the many problems confronting our Nation in the next term, we m better than this, GENERAL LEAVE Mr. BREAUX. IV,Ir. Speaker I ask unanimous consent that all MeniL r may have 5 legislative days in ich to revise and extend their reMar on the subject of the conference re just considered. The SPEAKER. Is there obj tion to the request of the gentlern from Louisiana? There was no objection. Mr. BREAUX. Mr. Speaker, move the previous question on the co erence report. The previous question was orderid. The conference report:was agreed to. A motion to reConeitler was laid on the table. CANAVERAL NAT'IOpTAL SEASHORE IN THE STATE or FLORIDA Mr, TAYLOR of North Carolina. Mr. Speaker, I ask unanimous consent to take from the Speaker's desk the bill (H.R. 5773) to establish the Canaveral Na- tional Seashore in the State of Florida, and for other purposes, with Senate amendments thereto, and concur in the Senate amendments, The Clerk read the title of the bill. The Clerk read the Senate amend- ments, as follows: Page 2, lines 11 and 12, strike out "a point on the waterway approximately one mile north of". Page 8, lines 4 and 5, strike out "a point pp. the waterway approximately one mile tortn of'. The SPEAKER, Is Were objection to the request of the gentleman from North Carolina? Mr. BAUMAN. Mr. Speaker, reserving the right to object, can the gentleman state whether there are any nongermane amendments attached to this? Mr. TAYLOR of North Carolina. The Senate amendments involve the deletion from the Seashore of approximately 600 acres of privately owned lands on the mainland side of Mosquito Lagoon, This deletion should result in a reduction in the land acquisition costs at this area. Mr. BAUMAN. Mr. Speaker, I with- draw my reservation of objection. The SPEAKER. Is there objection to the request Of the gentleman from North Carolina? There was no objection. The Senate amendments were con- curred in. A motion to reconsider was laid on the table. APPOINTMENT OF CONFEREES ON S. 1728, WAR CLAIMS Mr. MOSS. Mr. Speaker, I ask unani- Mous consent to take from the Speaker's table the Senate bill (S. 1728) to in- crease benefits provided to American civilian internees in Southeast Asia, with House amendments thereto, insist on the House amendments and agree to the conference asked by the Senate. The SPEAKER. Is there objection to the request of the gentleman from Cali- air hears none, and ap- e' following conferees: Messrs. STAGGERS, MOSS, STUCKEY, ECKHARDT, BROYHILL of North Carolina, WARE, and MCCOLLISTER. PERMISSION FOR CONFEREES ON S. 1728 TO FILE CONFERENCE RE- PORT Mr. MOSS. Mr. Speaker, I ask unani- mous consent that the conferees on the disagreeing votes of the two Houses on the Senate bill S. 1728, have until mid- night tonight to file a conference report on that bill. The SPEAKER. Is there objection to the request of the gentleman from Cali- fornia? There was no objection. CONFERENCE REPORT (H. REPT. No. 93-1618) The committee of conference on the dis- agreeing votes of the two Houses on the amendments of the House to the bill (S. 1728) to increase benefits provided to Amer- ican civilian internees in Southeast Asia, having met, after full and free conference, have agreed to recommend and do recom- mend to their respective Houses as follows: That the Senate recede from its disagree- ment to the amendment of the House to the text of the Senate bill and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the House amendment insert the following: That section. 5(i) (3) of the War Claims Act of 1948 (50 App. U.S.C. 2004(i) (3) ) is amended by striking out "$60" and inserting in lieu thereof "$150". Sno. 2. Section 213(a) of such Act is amended by redesignating paragraph (4) as paragraph (5) and inserting after paragraph (3) tlie following new paragraph: "(4) Thereafter, payments from time to time on account of the other awards made to individuals pursuant to section 202 and not compensated in full under paragraph (1), (2), or (3) of this subsection in an amount which shall be the same for each award or in the amount of the award, whichever is less. The total payment pursuant to this para- graph on account of any award shall not ex- ceed $250,000.". H 12151' And the House agree to the same. That the Senate recede from its disagree- ment to the amendment of the House to the title of the Senate bill and agree to the same with an amendment as follows: In lieu of the matter proposed to be in- serted by the House amendment insert the following: "An Act to amend the War Claims Act of 1948 to increase benefits provided to American civilian internees in Southeast Asia and to provide for additional payments on awards made to individuals under that Act.". And the House agree to the same. HARLEY 0. STAGGERS, JOHN E. Moss, W. S. (BILL) STUCKEY, Jr., BOB ECKHARDT, JAMES T. BROYHILI, JOHN H. WARE, JOHN Y. MCCOLLISTER, Managers on the Part of the House. QUENTIN BURDICK, HIRAM L. FONG, Managers on the Part of the Senate. JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The managers on the part of the House and the Senate at the conference on the dis- agreeing votes of the two Houses on the amendments of the House to the bill (S. 1728) to increase benefits provided to American civilian internees in Southeast Asia, submit the following Joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accom- panying conference report: The House amendments struck out all of the Senate bill after the enacting clause and inserted a substitute text and provided a new title for the Senate bill, and the Senate disagreed to the House amendments. The committee of conference recommends that the Senate recede from its disagreement to the amendment of the House to the text of the bill, with an amendment which is a substitute for both the text of the Senate bill and the House amendment to the text of the Senate bill, and also recede from its dis- agreement to the House amendment to the title of the Senate bill with a clarifying amendment. The differences between the text of the Senate bill, the House amendment thereto, and the substitute agreed to in conference are noted below, except for clerical correc- tions, conforming changes made necessary by reason of agreements reached by the con- ferees, and minor drafting and clarifying changes. SENATE BILL The Senate bill amended section 5 of the War Claims Act of 1948 to increase the authorized detention benefits for American civilians during the Vietnam conflict from $60 per month to $150 per month, in order to raise the detention benefits authorized for civilians to the level presently authorized for military personnel. HOUSE AMENDMENT The House amendment also amended sec- tion 5 of the War Claims Act of 1948 to in- crease from $60 to $150 per month the bene- fits provided to American civilian internees in Southeast Asia. In addition, section 2 of the House amend- ment amended section 213(a) of the War claims Act of 1948 to give a first priority to the payment in full of the remaining individual awards for property losses arising out of World War II, and a second priority to the payment of the remaining corporate awards for similar losses Up to the level of $50,000. Existing law provides for payment of both individual and corporate awards, in equal amounts up to $35,000, and on a pro rata basis above that figure. Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 II 21 Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 CONGRESSIONAL RECORD ? HOUSE December 17, 1974 ONERRESCE SUBSITEUTE The neeferenee subetitute, like bath the Senate semi lbs House amendment, increeses from efiet to 4150 per mental the eenefite provided to American civilian interages in Southeret Asia. Under the conference substitute, the pro- vision of existing law under which Loth in- dividua: and cooperate awards are paid in equal amounts tip to 1135,600 is retained, and thermefter individual- claimants rot paid in full optli receive payments in an arratunt which 1421 he the same for each award or in the amount of the award, whichever is less. The total payment under the new sec- tion 213(a) (4) to any individual on ac- count et any award is limited to 1200,000. The balance of amounts in the War Claims Fund will then be used to melee sro rata payments on the remaining individeal and corporate awards. The Committee of Conference ag nese in adopting these amendments to exist ne that there is no intent to encourage or set any ptecedent concerning settled ent of property loss claims in the field of interna- tional law which are within the proper jurisdiction of other committees of tae Con- gresii. The amendments ase designee solely to provide an equitable solution to the par- ticular facts surrounding the remaining un- paid peoperty loss claims arising out of World Wee IT, HARLEY 0. STAG(ISRS Joins Z. Moss, W. a. (Bus) armstm, Jr., Bon Ezaderurr, JAMES T. HROYMT L. JOIER H. WARR, JOHN Y. MeCoraasTas, Managers on the Pert of the House. Qemerrur HERDS= , Mame L. FIMIG, Managers on the Part of the Senate PERMISSION POR COMMIT'PEE ON ErnrATIoN AND LABOR TO PILE COEFER.ENCE REPORT ON KR, 620 Mr. MEEDS, Mr. Speaker, I ask unaniirrOus consent that the Committee On Education and Labor lave un;i1 mid- night 10111ght to fIe a Conference report on the bill H.R. 620. The SPEAKER. Is there objection the ribfruest of the gentleman Wash' tigton? There was no objection. CONFER EN CL REPORT (Ii. Rs-r. No 113-l620) The eommittee of conference on the dis- agreeing votes of the two Houses on the amendments of the Senate to the bill (Hee 620) to establish within the Department of the inIerler an additional Assistant Secre- tary of the Interior for Indian Affairs, and for other purposes, having met, after fun and free conference, have agreed to recom- mend end do recommend to their respective Houses as follows: That the House recede from its disagree- ment to the amendment of the Senate with an tunendment as follows: That there shall be in the Department of the Interior, in addition to the Assistant Secreteries now provided for by law, one act- ditionae Assistant Secretary of the Interior fox" Indian Affairs, who shall be amain ted by the President by and with the advice and consent of the Senate, who shall be responsi- ble for such duties as the Secretary of the Interleaf shall prescribe with respect to the conduct of Indian Affairs, and who shall receive compensation at the rate now or here- after prescribed by law for Assistant Seere- taries of the laterite. See. 2, Section 531e of title 5 of the United States Code is amended by striking out ' (6) " at the end of item (18) and by inserting in lieu thereof e(Mee Sec. 3. Section 462, Revised Statutes, as amended and supplemented (25 U.S.C. 1), and paragraph (45). of section A316 of title of the United States Code, -ate repealed: Provided, That this section shall not take effect until an Assistant Secretary of the In- terior for Indian Affairs has been conermed and takes the oath of office. SEC. 4. Subsection 7(c) of the Alaska Native Claims Settlement Act (85 Stat. 688) Is hereby amended 11 deleting that subsec- tion in its entirety and inserting in lieu thereof a new subsematon as follows: "(c) The Secret 4ry shall establish a thirteenth rezion for the benefit of Natives who are nonresidems of Alaska who elect, pursuant to section 28, to be enrolled therein, and they may establish a, regional corpora- tion pursuant to this Act." Sec. 5. The Alaska Native Claims Settle- ment Act (85 Stat. 588e is hereby further amended by insertire at the end thereof a new section 28 as follows: "Sec. 28. (a) The Secretary shall poovide the opportur,ity within 120 days after the enactment of this ection to all enrolled Natives 18 years or older on the date of fil- ing of the original enrollment application who are not permanent residents of Alaska to inform him withie 180 days after the en- actment of this Act whether or not they wish to be enrolled in thc thirteenth region and those that inform him that they desire to be enrolled in the thirteenth shall have their enrollment c:nanged so as to be enrolled in the thirteenth region. In determining resi- dence for purposes of this section, the Sec- retary shall ese the roll as certfied on De- cember 17, 1973, as amended, to reflect changes resulting from appeals or correc- tions: Provieed, however, That any Native who, prior to December 1, 1974, informed the Secretary in writing of a desire to change his claimed place of residence as stated ta col- umn 16 of the enrollment form and whose request for such change was not honored by the Secretary shall, within 120 days of the en talent of this -iubsection, be provided t opportunity to lie within 180 dims of ctment of this section, a fined declaration residence which tee Secretary shall review ad honor if it is otherwise in conformity with the provisions of this Act. Any Native, previously found eligible by the Secretary to participate in the thrteenth region election, who fails to inform the Secretary of his de- sires in accordance with this section shall be enrolled according to the Native's choice expressed on his arming' enrollment appli- cation or any amendment thereto previously accepted by the Secretary or any amendment thereto not previouE..y accepted by the Sec- retary: Provided, That the Secretary may re- ject any such amendment previously not accepted only if the Secretary determines that the Native's permanent residence is not that expressed by him in his amendment. "(b) Within a thirty day period of the completion cd the election and enrollment changes provided for in subsection ore of this section, any bona fide organization rep- resenting nonresideet Natives shall submit to the Secretary the names of not more than rive Natives who hime elected to be enrolled in the thirteenth region as nominees for the positions of the dye incorporators of the thirteenth regional corporation. Not less than thirty days nor more than sixty days after such period, the Secretary shall snail to all eligible voters ballots containing the names of all nominees and their associational affiliations for the purpose of an election by mail of the live incorporators who shall serve as the initial directors of the thirteenth regional corporation. eligible voters in the electicn shill be only hatives eighteen years of age or otter on the Cate of election of in- corporators 'pursuant to this subsection wno are ereollei in the thirteenth region. Valid ballots shall be only those ballots mailed to the Secretary or his designee not later than ninety dela after period. The five Wreathes for whom the most votes are cast shalt be eected Incorporators of the thir- teenth regional corporation and shall promptly lake ale steps authorized by this Act for such ineerporators. All rules, regula- tions, and Information relating to the elec- tion shall - be transtretted directly to all known ormenizations representing nonresi- dent Natives, the twelve regional corpora- tions representing real lent Natives, and all eligible voters-. "No moneys distribut id or to be distributed pursuant ea this Act may be expended or ohngeted by any Native, Native corporation, Native organisation, representative thereof, or adviser thereto,, to assist in, cosnmunicate on, or otherwise influence the election. "(MI The articles of incorporation of the ;thirteenth regional cor)mation shall be sub- mitted to the Secretary for approval in ac- cordance with subsection 7(c) within eighteen months of the enactment of this section. (d) Any distribution of fends to regional corporations from the Alaska Native Fund pursuant Ic subsection (c) of section 6 of this Act made by the eecretary or his dele- gate prier to enactmeat ci this aection on the basis Cf the final roll certified on Decem- ber 17. 1973, shall nut be affected by the provisions of this sortie a. The Secretary shall make any necessary adjustments in future distributions of funds pursuant to subsection (c) of seeirort 6 of this Act to accommodate enrolimene changes mtde pursuant to sub- section (al of this section to insure that the funds received by the thirteen regional cor- porations and their stockholders will be equal to the auras which would have been distri- buted to those corporations and individuals had the thirteenth regional corporation been formed on or before December 17, 19'73: Pro- vided, That such adjustments shall not take effect until the next regularly scheduled d is- tribusien ]?ericici following completion of the election aral enrollment changes pursuant to subsection (a) of this section: Provided further, That the Secretary is authorized to make payments to the thirteenth regional corporatioa, once established, during the period prior to such next reguIarly scheduled distribution period from the Fund pursuant to this Act and such payments shall be in the form cif advances on such corporations adjusted share of suet regularly scheduled distribution. "(e) Any stock Issued by a corporation under subsection (g) cf section 7 of this Act to any Native who as enrolled in the thir- teenth region persusxr; to this section shall, upon enrollment of that Native, be canceled by tie issuing cerporstion without liability to it or the Native who h stock is so canceled. "(ii Except as specifically provided herein, nothing irf this section shall be construed to alter or amend any of the provisions of this Act." Sec 6, The Alaska Native Claims Settle- ment Act (85 Stat. 680) Ls further amended by adding , a new section 29, to read as fol- lows: "See. 29 Any carport, lion organized pursu- ant to this Act shalt through December 31. 1976, be exempt from the provisions of the Investment Company Act of 1940 (54 Stat. 789), as emended. Nothing in this section shall, however, be construed to mean that any such corporation shall or shall not alter Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2601/08/29 : CIA-RDP75600380R000500380004-6 December 17, 1974 CONGRESSIONAL RECORD ? SENATE -r407ed until December 31, 1975, or until the State in which the sign, display, or deviee is located certifie%Alaat the direational infor- mation about the Pa vice or activity adver- tised? on such sign, ? lay, or device may reasonably be 'available Motorists by Some other method or meth whichever Shall occur first. A State shall giv reference, with due regard to the: orderly so 1duling of the removal of signs, displays, an. .evices and to highway safety, to the purch e and re- moval of any nonconforming sig display, or device voluntarily offered by th owner thereof to the State for removal if fu are available to such State for such purpo ."(p) In the case of. any sign, display, ? r device required to be removed under th . section prior to the date of enactment of the Federal-Aid HighWay Act of 1974, which sign, display, or device was after its removal law- fully relocated and which as a result of the amendments made to this section by such Act 15 required to be removed, the United States shall 'pay 100 per centum of the' just compensation for such removal. (including , ? all relocation costs). "(q) (1) Miring the implementation of State laws enacted to comply with this sec- tion, the Secretary shall encourage and assist the States to develop sign controls and pro- grama iidfich will assure that necessary direCtional information about facilities pro- viding goodil and services in the interest of :the traveling Will continue to be available to Motorists. To this end the Secretary shall 'restudy and revise as appropriate existing 'standards for directional signs authorized under sill:See:am:is 11(c)(1) and 131(f) to develop ilgns which are functional and esthetically compatible with their surround- ings. Re shall emploY the resourees of other Federal desiartments and agencies, including the National Endowment for the Arts, and etziploy naxfm,imliartielPition of private Industry in the- development of standards and systems- of signs developed for those .purposes. "(2) POir-Purposes of this subsection, signs proViding directional information about faclUtlea pirovlding goods and services in the interest of the traveling public are defined to be those giving directional information about OA and automotive services, food, lodging, campgrourids, truckstops, resorts, recrea- tional arw, tourist attractions, historic sites, and, such Other facilities as a State, with the aprOVal Of the Secretary, may deem appro- priate. "(3) Among other things the Secretary ? Shall,encourege Sttaes to adopt programs to assure that' removal Of Signs providing neces- sary directional information, which also were providing'. directional information on June 1, 1972, akont facilities in the interest of the tt11701/Jaglitililic,.be deferred until all other nottonformifig "signs are removed. "(4) The owner or operator of any facility providing goods' and services in the interest of the traveling pinblfc-shall have the right to Continue 'aging no More thin one noncon.- ? fornaing sign in each direction on any high- way subject to controls under a State law enacted to comply with this section, which sign is providing directional information about such facility, and which had been pro- viding directional infOrination as of June 1, 1972, and which TS within seventy-five miles, or such 'other: dainse_ as the State in which the sign is located may determine, until the Secretary determines directional 'information about such facility is being adeqUately pro- vided to motorists traveling in that direction . on such controlled highway by conforming signs authorized by Subsection 131(d), Of this title, by advertising' activities can- ducted on the Prolierty on' which they are located, by signs authorized by subsections 131(c) (1) or 131(f) of this title, by any other nonconforming signs, or by such other means as the State in whichthe sign is located deems to be adequate." CONTROL OF JUNKYARDS 8s.c. 104. Subsection (j) of section 138 of title 23, United States Code, is amended by striking out the first sentence and inserting In lieu thereof the following: "(j) Just compensation shall be paid the owner for the relocation, removal, or disposal of junkyards lawfully established under State law.". ADVANCE CONSTRUCTION SEC. 105. (a) Subsection (a) of section 115 of title 23, United States Code, is amended by striking out "including the Interstate Sys- tem," each of the two places it appears and inserting in lieu thereof at each such place the following: "other than the Interstate System,". (b) Section 115 of title 23, United States e, is amended by redesignating subsection (b as subsection (c) and by adding im- med ly after subsection (a) the follow- ing ne ubsection: "(b) en a State proceeds to construct any proje on the Interstate System with- out the aid Federal funds, as that System may be desi ted at that time, in accord- ance with all rocedures and all require- ments applicabl o projects on such System, except insofar as uch procedures and re- quirements limit a ate to the construction of projects with th id of Federal funds previously apportione o it, the Secretary, upon application by su State and his ap- proval of such applicatio is authorized to pay to such State the Fe al share of the cost of construction of su project when additional funds are apport ned to such State under section 104 of this itle if? "(1) prior to the construction the proj- ect the Secretary approves the ens and specifications therefor in the same nner as other projects on the Interstate Sy and "(2) the project conform to the app able standards under section 109 of this title BUS WIDTHS SEC. 106. (a) Chapter 1 of title 23 of t United States Code is amended by insertin after section 132 the following new section: "i 133. This widths "Notwithstanding any other provision of this title relating to vehicle widths, any bus having a width of one hundred and two inches or less may operate on any lane of twelve feet or more in width on the Inter- state System.". (b) The analysis of chapter 1 of title 23 of the United States Code is amended by striking out "133. Relocation assistance." and inserting in lieu'ihereof the following: "133. bus widths.". ENFORCEMENT SEC. 107. (a) Chapter 1 of title 23 of the United States Code Is amended by inserting after section 140 the following new section: "1 141. Enforcement of requirements "Each State shall certify to the Secretary before January 1 of each year that it is en- forcing all State laws respecting maximum vehicle size and weights permitted on the Interstate System in accordance with sec- titan 127 of this title, and all speed limits on public highways in accordance with sec- tion 2 of the Emergency Highway Energy Conservation Act (Public Law 93-239). The Secretary shall not approve any project un- der section 106 of this title in any State which has failed to certify in accordance with this section.". (b) The analysis of chapter 1 of title 23 of the United States Code is amended by striking out "141. Real property acquisition policies." and inserting in lieu thereof the following: "141, Enforcement of requirements.". S 217371 ACCESS liforiwAYS TO ?TOKIO RECREATION AREAS oN CERTAIN LAKES SEC. 108. (a) Chapter 1 of title 23, United States Code, is further amended by adding at the end thereof the following new section: "1 154. Access highways to public recreation areas on certain lakes "(a) The Secretary is authorized to con- struct or reconstruct access highways to public recreation areas on lakes in order to accommodate present and projected, traffic density. The Secretary shall develop guide- lines and standards for the designation of routes and the allocation of funds for the purpose of this section which shall include the following criteria: "(1) No portion of any access highway constructed or reconstructed under this sec- tion shall exceed thirty-five miles in length nor shall any portion' of such highway be located more than thirty-five miles from the nearest part of such recreation area. "(2) Routes shall be designated by the Secretary on the recommendation of the State and responsible local officials, after consultation with the head of the Federal agency (1) any) having jurisdiction over the public recreation area involved. "(b) The Federal share payable on ac- count of any project authorized pursuant to this section shall not exceed 70 per centum of the cost of construction or reconstruction of such project. "(c) All of the provisions of this title ap- plicable to highways on the Federal-aid sys- tem (other than the Interstate System) de- termined appropriate by the Secretary, ex- cept those provisions which the Secretary de- termines are inconsistent with this section, shall apply to any highway designated under this section which is not a part of the Fed- eral-aid system when so designated. "(d) For the purpose of this section the term 'lake' means any lake, reservoir, pool, or other body of water resulting from the con- struction of any lock, dam, or similar struc- ture by the Corps of Engineers, Department of the Army, or the Bureau of Reclamation, Department of the Interior, or the Tennessee alley Authority, and any multipurpose lake ulting from construction assistance of the S Conservation Service, Department of Ag ulture. This section shall apply to lakes here fore or hereafter constructed or au- thor d for construction. "(e) ere is authorized to be appropriat- ed not exceed $25,000,000 for the fiscal year 1976 to rry out this section. Amounts au- thorized this subsection for a fiscal year shall be a lable for that fiscal year and for the two suc 'eding fiscal years.". (b) The a alysis of chapter 1 of title 23 of the United tates Code is amended by add- ing at the end hereof the following: "154. Access hi ways to public recreation areas on ertain lakes.", BRIDGES N FEDERAL DAMS SEC. 109. (a) Se tion 320(d) of title 23 of the United Sta Code (as amended) is amended by striki g out "625,261,000" and inserting In lieu t. 'reof "$27,761,000". (b) All sums app opriated under authority of the increased au orization established by the amendment made by subsection (a) of this section shall be available for expenditure In the same manner and for the same pur- pose as provided for in subsection (b) of sec- tion 116 of the Federal-Aid Highway Act of 1970 (Public Law 91-605). OFF-SYSTEM ROADS SEC. 110. (a) Chapter 2 of title 23, United States Code, is amended by adding at the end thereof the following new section: "1 219. Off-system roads "(a) The Secretary is authorized to make grants to States for projects for the construc- tion, reconstruction, and improvement of any off-system road (including, but not limited Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 S 21738 a I -7 2 Approved For Release 2001/08/29 : CIA-RDP751300380R000500380004-6 CONGRESSIONAL RECORD --- SENATE December 17, 1974 to, the replacement of bridges, the elimina- tion of high-hazard locations, and roedside obstacles). "(b) Gra or before 4anuary 1 next preced- ing the cOnntrenceraent of each fiscal year the Secretary shall apportion the sums author- ized to be appropriated to carry out this sec- tion among the several States as followEs: "(1) one-third in the ratio which the area of each Etevte bears to the total area of all States; "(2) one-third in the ratio which the pop- ulation of rural areas of each State bears to the total population of rural areas of all the States; and "(3) one third in the ratio in which the off-system road mileage of each State bears to the total off-system road mileage ref all the Stater. Off-system road mileage as used in this subsection shall be determined as of the end of the calendar year preceding the year in whiCh the funds are apportioned and shall be certified to by the Governor et the State and Subject to approval by the Sec- retary. "(e) St.nas apportioned to a State under this section shall be made available for ex- penditure; In the counties of such State on a fair and equitable basis. "(d) Stens apportioned under this section and programs arid projecte under this sec- tion shall be subject to all of the provisions of chapter I of this title applicable to high- ways on the Federal-aid Secondary system except the formula for apportionment., the requirement that these roads be or; the Fed- eral-aid system, and those other provisions determined by the Secretary to be incon- sistent with this section. The Secretary is not authorized to determine as ineonsistent with this section any provision relating to the obligation and availability of funds. "(0) As used in this section the tern. 'off- system read' means any toll-free road (in- cluding bridges) in a rural area, which road is not on any Federal-aid system and which is under the jurisdiction of and maintained by a public authority and open to public travel.". (d) The analysis of chapter 2, title 23, United States Code, is amended by adding at the end thereof the following: "219. Off-system roads.". DONATIONS SEC. 111. Sectiob. 3113 of title 23, United States Code, is amended by striking out "after he has been tendered the full amount of the estimated just compensation R-3 es- tablished by approved appraisal of the fair market value of the subject real property," and by inserting in lieu thereof the follow- ing: "after he has been fully informed of his right to receive just compensation for the acquisition of his property,". REPEAL SEC. 112. Subsection (e) of section 2 of the Emergency Highway Energy Conserva- tion Act (Public Law 93-239) is hereby amended to read as follows: "(e) Thls section shall cease to be la ef- fect on and after the data on which Con- gress by. concurrent resolution declares there is r.o -need requiring the application of this sec tion.". EXTENSION OF CARPOOLS SEC. 113, The last sentence of section 3(d) of the Emergency Highway Energy Conserva- tion Act (Public Law 93-239) is amended by striking out "December 31, 1974" and insert- ing in lieu thereof "December 31, 1975". RECONSTRUCTION OF ROUTES SEC. 114. The Secretary of Transportation Is authorized to make grants to the State of Florida for the reconstruction of Federal primary rsiurs. The provistens of chapter 1 of title 2.43, united States Code, that are ap- plicable to Federal -aid primary highwaye, cept those relating to the apportionment formula and the period of availability of funds dual apply to the reconstruction au- thorized by this section. Funds authorized by this section are in addition to, and not In lieu of, funds othereise available to the State of Florida under any other provision or law. Funds authorized to carry out this section for the fiscal year ending June 30, 1975, shall be deemed to be apportioned to the State of Florida on the date of enact- ment of this section and other funds au- thorized to carry out this section shall be deemed to be apportioned to the State of Florida on January 1 next preceding the commencement of the first full fiscal year which begins after the date of enactment of this section. Such sums shall be available until expended. $10,000,300 is authorized out of the. Highway Trust Fund for the fiscal year ending June 30, 1.975, and $16,000,000 Is authorized out of the Highway Trust Fund for the fiscal year ending June 30, 1976, to carry out this section. DEMONSTRATION PROJECTS Sec. 115. The Secretary of Transportation shall carry out a demonstration project for construction of a high-density urban high- way intermodal. transportation connection between Franklin Avenue and Fifty-ninth Street, South, in Minaeapolis, Minnesota. The Federal share of such project shall be 90 per centum of the cost thereof. Such high- way shall be placed on a Federal-aid system before any funds are expended under this section. There is authorized to be appropri- ated, out of the "Highway Trust Fund, not to exceed $53,000,000 to carry out this sec- tion. AUBURN' BRIDGE SEC. 116. (a) In order' to provide access between the historical portion of the city of Auburn, California, Auburn District Fair- grounds, city park and parking lots, and the Auburn Dam Overlook area, for motor ve- hicles and for passage or pedestrians, eques- trians, and cyclists under a highway reloca- tion, the Secretary of the Interior is au- thorized to construct, in lieu of a drainage culvert, an intermediate size bridge across a shallow ravine, The bridge, at approximate stations 154 16 to 155+30 (84 feet), shall be part of the Stale Highway Number 49 relo- cation through the city of Auburn, Cali- fornia. (b) Upon completion such transferred to The State of ifornia for operation and maintenance a part of the highway relocation. The cost f the bridge, less the original planned dr age culvert, shall be considered as nonrei bursable. (c) There is authorized to ppropriated to carry out the: section the su of $250,000 (October 1974 price levels) pl or minus such amounts as easy be Justin by changes in price indexes applicable to e type of development involved herein, aorere wrier DRAWALS SEC. 117. (a) Section 103(e) (2 1.f title 23 of the United States Code is ended by striking out the period following use Re- port Numbered 92-1443" and in g g i11 thereof' a comma and the foil n: "In- creased or decreased, as the c ay be, as determined by the Secretary, ased on changes in conseruction costs o euch route or portion thereof as of the d of with- drawal of approval under this p aph and in accordance with that design such route or portion thereof which is the sis of such 1972 cost estimate," (b) Section 103(e) (41 of title 23 of the United States Code is amended by striking out the period following "House Report Num- bered 92-1443" and inserting In lieu thereof a comma and the following: "Increased or decreased, as the case may be, as determined by the Secretary, based on changes in con- struction costs of such route or portion there- of as of the date of withdrawal of approval under this paragraph and in accordance with that design of such route or portion thereof which is the basis of such 1972 cost estimate." sector:a. ars DRIVER TRAINING SEC. 1118. (a) Chapter 4 of title 23, United States Code, is amended by adding at the end thereof the following law section: "6 406. School bus driver training "(a) The Secretary is authorized to make grantsao the States for the purpose of carry- ing out State_ programs approved by him of driver ethical:ion and training for persons driving school. buses. "(b) A State program under this section shall be approved by the Secretary if such program-- "(1) provides for the establishment and enforcement of qualifications for persons driving school buses; "(2) provities for initial education and training and for refresher courses; "(3) provides for periodic reports to the Secretary on the results of such program; and "(4) includes persons driving publicly op- erated, and persons driving Privately oper- ated, school buses. "(b) There is authorized to be appropri- ated out of the Highway Trust Fund for the fiscal year 1076, $7,500,000 per fiscal year. Such sums shall be apportioned among the States in accordance with theaformula es- tablished under subsectiOn (e) of section 402 of this title. The Federal share payable on account of any project to carry out a pro- gram under this title shall not exceed 70 per centura of the cost of the project." (b) The analysis of chapter 4, title 23, United State* Code, is amended by adding at the end thereof the following: "406. School bus driver training.". Mr. RANDOLPH. Mr. President, I move that the Senate disagree to the amend- ment of the House; agree to the request of the House for a conference on the dis- agreeing votes of the two Houses there- on; and that the Chair be authorized to appoint the conferees on the part of the Senate. The motion was agreed to; and the Presi Officer appointed Mr. RAN- r. GRAVEL, Mr. BuRracic, Mr. TAFFORe, and Mr. BAKER conferees On the part of the Senate. AMERICAN CIVILIAN INTERNEES IN SC RrrHEAST ASIA Mr. BURDICK. Mr. President, I ask the Chair to :y before the Senate a mess- age from the House of Representatives on S. 1728. The PRESIDING OFFICER (Mr. HAS- KELL) laid before the Senate the amend- ment of the House of Representatives to the bill (S. 1728) to increase benefits provided to American civilian internees in Southeast Asia as follows: Strike out all after the enacting clause, and insert: That section Ii(i) (3) of the War Claims Act of 1948 (50 App. U.S.C. 2004(1) (3) ) is amend- ed by striking out "$60" and inserting in lieu thereof "$150". Sec. 2. (a) Section 213( a) (3) of the War Claims Act of 1948 (50 App. U.S.C. 20171(a) (3) ) is amended to read as follows: "(3) Thereafter, paymeate from time to time on account of the Other awards made to individuals pursuant to section 202 and not compensated in full under paragraph (1) or (2) of this subseston in an amount which shall be the same for each award or in the amount of the award, whichever is less. The total payment pursuant to this Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2001/08/29: CIA-RDP75600380R000500380004-6 December 17, 1974 CONGRESSIONAL RECORD ?SENATE S 21739 paragraph on account of any award shall not exceed $500,000.". (b) Section 212(a) of such Act is amended by redesignating paragraph (4) as paragraph (5) and inserting after paragraph (3) the following new paragraph: "(4) Thereafter, payments from time to time on account of the ether awards made to corporations ptirsnant to section 202 and not compensated in full under paragraph (1) or (2) of this subsection in an amount which elaall be the same for each award or in the ? amount of the award, whichever is less. The total payment pursuant to this paragraph On account of any award shall not exceed a50,000.". And to amend the title so as to read: "An Act to amend the War Claims Act of 1948 to increase benefits provided to AMarican civilian internees in Southeast Asia and to provide for additional pay- on awards made to incividuals . and corporations tinder that Act." Mr. BURDICK. Mr. President, I move that the Senate disagree to the aniend- , Ments of the House and request a con- ference with the House of Representa- tiVes, and that the Chair be authorized to appoint then conferees on the part of the Senate. motion was agreed to; and the Presiding Officer appointed Mr. BURDICK, Mr, Balm., and Mr. FONG conferees on the part of the Senate. ?BOCl2kT., SERVZ7;1Ail.VIENDMENTS The Senate continued with the con- !aeration of the bill (FIR. 17045) to amerid the Social Security Act to est b. a consolidated program of ancial assistance to pro- vision of services by the States. Mr.LONG. Mr. President, in order that the RECORD *might show what a shocking arnount of taxes are actually paid by the poor, I ask unanimous consent to have printed in the RECORD a chart dem- OnStrating the percent of taxes estimated to be paid by the poor and their income. There being no objection, the chart was ordered to be printed in the RECORD, as follows: TAXES AND TRANSFERS AS A PERCENTAGE OF INCOME: 1965 Taxes Trans- -State fer . Fed- and' pay- Income class mai local ' Total meats Taxes less trans- fers Under $2,000 $2,000 to $4,000 $4,000 to $6,000 $6,000 to $8,000 $8,000 to $10,000 $10,000 to $15,000 $15,000 and over Total ts 16 17 17 18 19 32 22 25 11 10 9 9 9 7 9 44 27 27 26 27 27 38 31 126 11 5 3 2 2 1 14 ?183 16 21 23 25 25 37 24 1 The minus sign indicates that families and individualsin this class received more from Federal, State, and local governments than they, as a group, paid to these governments in taxes. Source; Herman Miller, filch Man, Poor Man, p. 17. Joseph A. Pechman "The Rich, the Poor and the Taxes They Pay," The Public interest, November 1969. The data are from the Economic Report of the President, 1969, p. 161. Mr. LONG. Mr. President, according to this chart, which was prepared by Mr. John A. Pechman and which was in- cluded in an article entitled, "The Rich, the Peer, and the Taxes They Pay," No- vember of 1969, it is pointed out that people whose income is listed as being $2,000 and under pay a shocking figure of 44 percent of their income in taxes. Mr. President, that is a higher percentage than is paid by those who are making $15,000 and over, at the bottom of that column. One can say, well, how could it be so high? I assume the reason it is so high is that some of those people are drawing welfare payments, which are not counted as income, and which are shown in the column of that table headed "Transfer Payments." Mr. President, there are a lot of poor people who have no income other than their earnings. For those people who make $2,000 or less, the taxes are amaz- ingly high. For example, even though they pay no income tax, when they buy a product, they absorb somewhere be- tween 50 percent and 75 percent of the income tax levied on corporations, which has been passed on to them in the price of their product. All economists agree, so far as I have been able to determine, that that figure has to be at least 50 percent, and it probably would be nearer to 75 percent if one takes into account the extent s which corporations neces- sarily must ass along the tax expense, just as the must pass along all other expenses ? doing business in order to make a fit and stay in business. Wh he social security tax is paid, the ically the worker is paying about rcent of his income in social secu- - ty taxes. As a practical matter, he is paying more, because when he buys the article, the manufacturer or the pro- ducer, having paid that social security tax, adds it to the cost of doing business and it is in the price that a person pays. So, if we look at who ultimately pays a tax, in many instances, it might ap- pear that the tax is assessed on an em- ployer, but it had been pased on to the consumer of the product. Taking those things into account, Mr. President, it is amazing and somewhat shocking how the poor pay almost as much in taxes, measured against their meager income, as do the rich. That is why some of us have been contending for many years, and we have persuaded the Senate on at least two occasions, that, rather than tax income away from the poor, Which then puts them on welfare, and rather than have working poor on welfare for small amounts of money? $10 or $15 or $20 a month?it would be better simply to give those people a tax cut on taxes which are being passed through to them, give them credit on taxes we know they are absorbing. There is no way of their buying the necessities of life without absorbing the social secu- rity taxes, the corporate income taxes, and other taxes passed on to them. When people pay rent, it is true that they are paying no direct taxes on the property, but thelandlord is paying those taxes, and he is including the cost in the rent. So it is not the landlord, in the last analysis, who is paying taxes on his prop- erty, it is the person who rents the prop- erty. That is why this chart indicates that for people making an income of $2,000 or less, their State and local tax rate is 25 percent of their income, being a large part of the rent that they pay when they seek to obtain housing. This tax credit was once referred to, Mr. President, as the work bonus. That was the name suggested to us by the able Senator from Nebraska (Mr. CUR- las), at a time when he was supporting this proposal. Subsequently, when we of- fered it on a tax bill, he suggested it should be named the low-income tax credit. I suppose it would be just as well to let it be named the low-income tax credit, because if the Senator feels that he must disown the baby to which he helped give birth, and it would be best that it not bear the name he gave it. If it becomes law, it will be known as the low-income tax credit, which I think' might help avoid confusion as to the pa- ternity of the legislative proposal. It is not really the suggestion of the Senator from Louisiana, Mr. President. This was suggested to me the first time by Gov. Ronald Reagan of California. He suggested that we should try to give back to law-ineome working poor that 5 percent social security tax that they were paying. This Senator, in turn, concluded that if we are going to give them back something, since they are actually ab- sorbing the whole 10 percent, we may as well give them back the whole 10 percent, In order to avoid helping the poor on to the welfare rolls. When we debated this welfare reform proposal back and forth, there was one suggestion generated by those of us who studied the matter on the Committee on Finance, which at that time both the lib- erals and the conservatives were able to agree upon. That was this proposal which is now referred to as the low-income tax credit, part of the amendment to this bill. I hope, Mr. President, that the Senate, having voted for it by large majorities every time it voted?I think the last time It was voted on, it received better than a 2-to-1 margin, almost a 3-to-1 major- ity?the Senate will again give its approval to this measure. We just passed a proposal to provide public service jobs for several billion dol- lars to try to help the poor who have no jobs. While we are at it, I think we would be well advised to see if we cannot do something for those who are very dis- tressed, partly because of the taxes they are having to absorb. They have jobs, al- though those jobs have so little to recom- mend them that many of these people must apply for welfare assistance, which would not be necessary if they were not having to bear an unconscionable burden on the very meager income that they earn. Mr. President, if there is no other Sen- ator desiring to speak on this measure, I am prepared to yield back the remainder of my time and permit the clerk to call the roll. The PRESIDING ateriCER (Mr. BAS-. KELL) . The time of the Senator from Lou- isiana has expired. Mr. CURTIS. Mr. President, I yield such time as he desires to the distin- guished Senator from New York (Mr. BUCKLEY). Mr. BUCKLEY Mr. President, I wish to reiterate a point I have been making Approved For Release 2001/08/29: CIA-RDP751300380R000500380004-6 S 21740 Approved For Release 2001/08/29 : CilA-RDP751300380R000500380004-6 CONGRESSIONAL RECORD ? SENATE December 17, 1974 on a elm/thereof oceasions in reeent months, namely, the impossibility of do- ing tam work intelligently when we are asked to vote on complex legislation that is reported out wthout any advance notice and without any accompanying report, or a report arriving on the floor so late as to make analysis impossible. Under the circumstances, I propose to vote against cloture. I simply do not see why theee matters cannot be held over until the first of next year?we are talk- ing only in terms of a few weeks?so that the Members of this body will have a chance to analyze and assess the impact of the whole variety of issues and amend- ments that are contained in the legisla- tion before us. There is one item that is of particular Interest to me, and that is to see to it that any legislation that is enacted has in it an expression of the will of the Sen- ate that no Federal funds will be availed of for the financing of abortions. In the past year, we have had a number of pieces of legislation that contained this clear intent; yet we find resistance and heel-dragging at HEW. I certainly Intend, if we dca go forward with this legislation this year. to call up such an amendment. I also understand that this bill pro- poses a measure which may very well be important, and may very well meet one of our basic needs; namely, the proposi- tion of providing financial subsidies to the working poor. This, however, is a complex matter, and I believe it has enormous implica- tions for a redirection of our whole con- cept of welfare support. It may very well be a measure to which I may want to give my personal support, but, again, I cannot see how any of us who have, not been actively involved in the delibera- tions of the committee can be expected to drop every-thing else we are trying to do In the doling clays of the session in order to concentrate oh the issues, to deter- mine how we may want to vote on this and the other important issues involved in the legislation. Therefore, Mr. President, I hope sufti- dent Members will vote against cloture to enable us to more thoughtfully under- stand what is contained in the Social Services Amendments of 1974. The PRESIDING OFFICER. Who yields time? Mr. ROBERT C. BYRD. Mr. President, does the Senator from Louisiana have any time remaining? The PRESIDING OFFICER. The Sen- ator from Louisiana has no time re- maining. Mr. CURTLS. Mr. President, how much time do we have remaining? The PRESIDING OLorICER. The Sen- ator from Nebraska has 13 minutes. Mr. CURTIS. Does anyone wish fur- ther time, on either side? Mr. President, I yield back the re- mainder of my time. CLOTURE MOTION The parsmirra OFFICER (Mr. Hesiceee). All remaining time for de- bate uneer the unanimous-consent agreement having been yielded back., pursuant to rule XXII, the Chair lays before the Senate the pending cloture motion, which the clerk will state. The legislative cleric read as follows: CLoTinua MOTION We, the Undersigned Senators, in accord- ance With the provisions of Rule =I of the Standing Rules of the Senate, hereby move to bring to a close the debate upon the Committee substitute amendment to H.R. 17045. Russell B. Long, Herman E. Tal- madge, Hugh Scott, Abraham Ribicoff, Mike Gravel, Fra?ak E. Moss, Walter F. Mondale, Lloyd Bentsen: Robert P. Griffin, Wallace F. Bennett. Carl T. Curtis, Paul J. Fannin, Clif- ford P. Hansen Robert Dole, Bob Packwocxl, Clatlx, rue Pell. ? CALL OF THE ROLL The PRESIDING OrriCER. Pursuant to rule XXII, the Chair now directs the clerk to call the roll to ascertain the presence of a quorum. The second assistant legislative clerk called the roll, and the following Sen- ators answered to. their names: [No. 558 Leg.] Allen Curtis Long Buckley Ervin McGee Byrd. Fannin Metcalf Harry F., Jr. Griffin Pastore Byrd, Robert C. Fart Ribicoff Chiles Ers?elrell The PRESIDING OFFICER. A quorum is not Present. Mr. ROBERT C. BYRD. Mr. President, I move that the Sergeant at Arms be directed to request the attendance of absent Senators. The motion was agreed to. The PRESIDING OFFICER. The Ser- geant at Arms will execute the order of the Senate. After some delay, the following Sen- ators entered the Chamber and answered to their names: Abouresk Hansen Packwood Aiken Hartke Pearson Baker Hatfield Pell Bartlett Helms Percy Esayh Hollings Proxmire Beall H ruska Randolph Bennett Htddlestoa Roth Biden Hughes Schweiker Brock Humphrey Scott, Hugh Brooke Itouye Scott, Burdick Jackson William I., Cannoa Javits Sparkman Case Johnston Stafford Church Kennedy Stennis Clark Magnuson Stevens Coot Mathias Stevenson Cotton McClellan Symington Cranston McClure Taft Dole MN2tovern Talmadge Domenid McIntyre Thurmond Dominick Metz enbai im Tower Eagleton Mondale Tunney Eastland Montaya Weicker Fong Moss Williams Fulbright M ask ie Young Goldwater Nelson Gurney Nunn Mr. ROBERT C. BYRD. I announce that the Senator from Texas (Mr. BeNesee) , the Senator from Nevada (Mr. Brine), and the Senator from Alaska (Mr. GRAVEL) are necessarily absent. I further announce that the Senator from Montana (Mr. MANSFIELD) is ab- sent on official business. I also announce that the Senator from Maine (Mi. HATHAWAY) is absent because of a death in the family. Mr. GRIFFIN. I announce that the Senator from Oklahoma (Mr. Bummer) Is necessarily absent. The PRESIDING OFFICER. A quorum is present. VOTE The PRESIDING OFFICER. The Sen- ate will be in order. The question is, Is it the sense of the Sentae that debate on the committee substitute amendment to H.R. 17045, the Social Services Amendments of 1974, shall be brought to a close? The yeas and nays are mandatory under the rule. The clerk will call the roll. Mr. ROBERT C. BYRD. Mr. President, let us have order before the clerk calls the roll. ? The PRESIDING OFFICER. The clerk will suspend and Senators will please take their seats. The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. ROBERT C. BYRD. Mr. President, we cannot hear our names. The PRESIDING OPFIC:ER. The Sen- ate will be in order, The clerk will suspend. The clerk will call the roll. The legislative cleric resumed and concluded the call of the roll. Mr. ROBERT C. BYRD,. I announce that the Smator from Nevada (Mr. BIBLE),? the Senator from Texas (Mr. BENTSEN) , the Senator from Alaska (Mr. GRAVEL) , and the Senator from Michigan (Mr. HART) are necessarily absent. I further announce that the Senator from Montana (Mr. MANSFIELD) is absent on official budnes.e. I also announce that the Senator from Maine (Mr. HATHAWAY) IS absent because of a death in the family, I further announce that, if present and vottng, the Senator from Maine (Mr. HATHAWAY) and the Senator from Mich- igan (Mr. Mete) would each vote "yea." Mr. GRIFFIN. I announce that the Senator from Oklahoma (Mr. BELLMON) IS necessarily absent. The yeas and nays resulted?yeas 70, nays 23, as follows: [No. 559 Leg.] YEAS----70 Abourezk Hatfield Aiken Hollings Baker Huriclleston Bayh Hughes Beall Humphrey Biden Inouye Brock Jackson Brooke Javits Burdick Johnston Byrd, Robert C. Kennedy Case Long Clark Cook Cranston Curtis Dole Domenici Eagleton Fannin Fong Griffin Hansen Hartke Haskell Allen Bartlett Bennett Magnuson Mathias McGee McGovern McIntyre Metcalf Metzenbaum Mondale Montoya itoss Euskie Nelson Nunn NAYS-23 Buckley Byrd, Harry F., Jr, Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Packwood Pastore Pearson Pell Percy Randolph Ribicoff Roth Schweiker Scott, Hugh Sparkman Stafford Stevens Stevenson Symington Taft Talmadge Tower Tunney Weicker Williams Young Cannon Chile* Church Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 December 19,1974. CONGRESSIONAL RECORD?SENATE , AS educator, author, Congressinari, even begun to rival his stature in foreign , Senator, and-stateaman in the true sense affairs and his impact on the conduct of the term, ,3. Wii.iiiiit-FITL1311IGHT" has of U.S. foreign relations. . performed "15ri1liant1Y - On behalf of his Under Senator FULBRIGHT'S leadership, CpuntrY. I Will - miss his daily presence the Senate Foreign Relations Committee Ennerig Us, and the wise arid Patient has gone on to new strengths, while his cops- el Which he always gave of So -get).- personal contribution both within and erously. 'Yet f knovethat We can cOntinue without the committee has been im- , to count upon:Min:to observe and discuss measurable. the whele specTUST &Talk events, and From the Fulbright scholarship pro- that his role sTaredUCator-statesman will gram to his unflagging courage and in- not be ROMs as his Senate Career closes, sight during the national trial of Viet- Toiny..good -friend, may I wish many nam, to divining a new course for Amer- happy ancl produatiVe Years ahead. The ica in the post-Vietnam era, Senator Repnbfic is much in your debt. And your FULBRIGHT has set the highest standards Countrymen will long honor the splendid for wisdom, statesmanship, and leader- service you have performed as a Rbpre- ship. sentative of the pervle of this great land. BILL FULBRIGHT is a son of the Senate, . , Mr. McGOVeRl\r: 16. vi re?i derit , Sen- but he has walked a world stage, as well. atOT FULBRIGHT'S"i,eaf's as Chairinin of He is as well known and respected in - the Senate Foreign.Relations,Conimittee the far corners of the Earth as he is here Will stand .in Watery as an era of iiri- in this Chamber. One cannot traVel any- eXcelledstate: s'rnanilaip and patriotism where without hearing him spoken of , He 114' challinge`cl most forcefully the as the personification of what is best in dangerous thesis that the role Of Con- America and best in our foreign policy. gress is ,only ta: ratifY"Viithotit question Our loss in the Senate is a logs, therefore, what the ..cecr,yt,iv,e-,4Oes in foreign at- for the world. fairs. And WQ 3Q01E0 li:,111IS Of that cour- 'Yet, even as Senator FULBRIGHT leaves ' ageous efforl today, In such far-reaching the Senate, his work is riot done. What- institutional clian.geS 4s: the War Pow- ever he does, he will Continue to leave ers Bill and refOrrned3rOcedures on ex- his mark on U.S. foreign policy, and con- ecutive agreenients. In many cases these tinue to provide invaluable service to this reforms bear tl-,4.0 nainei of others:. 31 ut Nation and the world. every one bears the Imprint and fulfills Mr. President, on a more personal the inspiration or lii.a. `PULBRIGHT. Por note, I Want to thank BILL FULBRIGHT above all othoCconsrcrerations, including for all that he kr done for me and the . ... party, he has .been faithful to the bon- other younger embers of the Senate. stitution and t4, tla:e "true interests of the For the past 12 years, I have always American peOple.known that I Could turn to him for wise We ghould reCall .in. particular today counsel, friendship, and support. He has Senator Ftri,saroirr!s decisive role in re- .1-lever faileCto respond with generosity " versing the worst foreign policy blunder of his time, talents, and compassion. In our history?the war in Vietnam. I feel deep warmth and affection for Ill he niidd.le IRO's; the incisive hear- BILL T'uiltiiroirr, treasure my associations lags of the Senate Committee on Foreign with him, and look forward to many Relations were, without any question, the more years of continuing friendship. We greatest single restraint upon disaster in will all miss him, and the Chamber will Indochina. More than anything else, it seem .empty when he has left it. was Senator PUL:BRIGHT's persistentin- T4e, PRESIDING OFFICER. The Sen- terrogations that exposed the fallacy of atorirom Arkansas. . our WO Policy: and that began the long ""r. FULBRIGHT. I could not possibly process which ultimately turned that Pol= e),,,press adequately my appreciation to Icy around. And X shall always believe iny colleagues for what they have said, that there are thousaridsOf young Amer- gr. President. leans wlio are a1ive, t94,y, or who escaped One of the rewards of retiring from shattering 1nja,n7,.,bedause of the cour- :this body is to feel that you have the age and determination of the gentleman respect of so many of these very able from Ark as gentlemen from all parts of this great I have ian the privilege of serving un;' der Chairman FtwanonT on. the Foreign Relatione Ponunittee for but 2 years. 'TUt for all the time I have been l, he , Congress I have increasingly adipired this remarkable, unique man from Ar- kansas. -7 As he leaves the Senate no he has my lasting appreciation for L insight and inspiration and MY best es for a happy, satisfying future for in and for lalo lovelYWife.I3ettMr y, . . ent, I wnt . . ' ' test' t ' Pre a to join My colleagues in the Senate in paying tribute to Senatol2onu WILLIAM FuLBRIGyr Of ArkanSas.sIt would be im- possible to do justiceour friend and colleague In a ew wo ? axles, he has been a gt.. nt on the national if . For three dee- :f and InternAppur scene. Only a small country. Earlier today, not anticipating quite this development, I made this state- ment with regard to my experience here in the Senate. I will not repeat that, other than. to say it has been a tremen- dous experience, and I have enjoyed it. It has been a unique one from my point of view, and wholly unexpected since I had started out in the academic field. In any case, today has been a very satisfying and fitting last day?I pre- sume it will be our last day?of 30 years in this body. It is a great body, and I leave with every confidence that in the great prob- lems that are confronting it, both do- mestic and foreign, a way will be found. I appreciate all that has been said by the Senators from South Dakota, Flor- handful of Senators in our history have ida, Maine, Pennsylvania, Mississippi, S 22193 Iowa and, of course, my senior colleague with whom I have worked during these 30 years. Senator MCCLELLAN, of course, as we know, is a great tower of strength and a leader of this Senate. It has been a tre- mendous privilege and pleasure to work with him in the many areas which are of great interest primarily to Arkansas, but also to every State in the Union. He has made a great contribution and, of course, is making a great contribution as chairman of the Committee on Ap- propriations. I only end by saying I deeply appre- ciate the thoughtfulness of all my col- leagues who have so eloquently expressed themselves here today. COPYRIGHT IN SOUND RECORDINGS Mr. McCLELLAN. Mr. President, I ask the Chair to lay before the Senate a mes- sage from the House of Representatives on S. 3976. The PRESIDING OFFICER (Mr. HAS-, KELL) laid before the Senate the amend- ments of the House of Representatives to the bill (S. 3976) to amend title 17 of the United States Code to remove the expi- ration date for a limited copyright in sound recordings, to increase the crimi- nal penalties for piracy and counterfeit- ing of sound recordings, to extend the duration of copyright protection in cer- tain cases, to establish a National Com- mission on New Technological Uses of Copyrighted Works, and for other pur- poses as follows: Page 2, line 12, strike out "three years,", and insert "one year,". Page 2, line 14, strike out "seven", and insert: "two". Page 2, line 19, strike out "three years,", and insert: "one year,". Page 2, line 21, strike out "seven", and insert: "two". Page 4, line 18, strike out "generally;", and insert: "generally, with at least one member selected from among experts in con- sumer protection affairs; ". Page 6, line 8, after "title", insert: "until June 30,1976". Mr. McCLELLAN, Mr. President, on September 9 the Senate passed the long delayed bill for the general revision of the copyright law. It was then antici- pated that adequate time did not remain in this Congress for the House of Repre- sentatives to act on that legislation. Con- sequently, on the same day the Senate also passed S. 3976, which contains cer- tain copyright provisions which require action this year. The House of Representatives today passed S. 3976 with minor amendments. Two amendments relate to the criminal penalties for the pirating of records and tapes. The Senate language, which was supported by the Department of Justice, provides for imprisonment of up to 3 years for a first offense and up to 7 years for a subsequent offense. The House amendments reduce these terms to 1 year and 2 years respectively. S. 3976 establishes a National Commis- sion on New Technological Uses of Copy- righted Works to study certain copy- right issues which are not resolved in the Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 S 22194 S t Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 CONGRESSIONAL RE CORD ? SENATE December 19, 1974 general revision legislation. Two }Ruse amendments pertain to the Commission. One would limit to June 30, 1976, the au- thorization to appropriate funds for the operation of the Commission. The other House amendment concerns the selection of the four public members of the Conunission. The only requirement in the Senate bill IS that they be "nm- governmental." I had included that q lification la my bill solely to preclude the sisPointment of official representative; of Governmeit agencies. The House ame ad- ment specifies that at least one of the Public members shall be selected "from among exerts in consumer protection affairs." All members of the public are consumers of copyrighted materials. None of the major consumer organisa- tions have been active in the technical areas to bs studied by the Commission. Consequently, I do not interpret the House amendment as requiring the P re- sedent to necessarily select an individial who is associated with any organieed association of consumers. Mr. President, with the approval of the minorty, I move that the Senate ne House amendments to S. The motion was agreed to. WAR CLAIMS ACT--CONFERENCE REPORT Mr. BUFDICK. Mr. President, I stb- mit a report of the committee of ccn- ference on S. 1728, and ask for its lin-- mediate consideration. The PRESIDING OFFICER (Mr. Has- KUL). The report will be stated by title. The legislative clerk read as follows: The committee of conference on the dis- agreeing voles of the two Houses on the amendments of the House to the bill (S. 1728) to inwease benefits provided to Amor- lean civilian internees in Southeast Asia, having met, after full and free conference, have agreed to recommend and do recom- mend to their respective Houses this report, signed by all the conferees. The PRESIDING OFFICER. Is there objection to the consideration of the conference report? There being no objection, the Senate proceeded to consider the report. (The conference report is printed in the House .:eroceedings of the COMMIES- SIONAL RECORD of December 17, 1974, at p.1112151.) Mr. BURDICK. Mr. President, I ask. unanimous consent that two of my staff members William P. Westphal and Brien Southwell have the privilege of the flan during the consideration of this bill. The PRESIDING OFFICER. Wahl:nit objection, it is so ordered. Mr. BURDICK. Mr. President, the con- ference report on this bill reflects the fact that the conferees reached agree- ment on a tompromise proposal for dis- tribution of the funds remaining for dis- tribution or to be liquidated for futuee distribution under the War Claims Alt of 1948. I might soy at this time that the Hoven has adopted the conference report. When S. 1728 first passed the Senase on October 8, 1973, it provided simiely for an increase from $60 to $150 per month in the benefits paid to civilians who were interned during our recent ex- periences in Southeast Asia. The bill was amended by the House to provide for certain new priorities in Payment of the remaining unpaid claims by individuals and corporations for prop- erty lost in World War II. The War Claims Act was intended to provide seine measure of relief to U.S. citizens and U.S. corporations who suf- fered injury, death, or property loss as a result of the hostilities with Japan and Ge. enany. They were to be paid as a matter of grace from the moneys re- ceived from the sale of enemy assets. Because the claimants had no vested rigats in the fund and because full pay- ment of all claims was unlikely, Congress authorized payment through a system of priorities based on equity. Personal injury and death claims were given first priority, with claims of small businesses, and those of $10,000 or less also paid in full, This was authorized in 1962. In 1970 further amendments gave full satisfaction of claims by religious, charitable, and similar nonprofit orga- nizations, and authorized additional pay- ments not to- exceed $35,000 of which $11,000 has been paid to date. All claims not yet fully 'satisfied were to be taken from the balance on a pro rata basis: 6,62 claims have been fully satisfied of approximately 7,000 total claims. The total expenditure to date is approximate- ly $350 million. The remaining 161 cor- porate and 187 individual claims repre- sent the largest of the nonpriority ascla rds. The payments which have been made to date can best be summarized as fol- Iowa: Thirty-four death and personal injury awards paid in full totaling $510,035; 251 small business awards paid in full total- ing $12,026,093; 5,635 awards of $10,000 or less paid in full totaling $13,059,352; 33 religious,- charitable, and nonprofit awards paid in fell totaling $24,189,313; 886 individuals have received payment of $35,276,571 leaving 187 individuals with a remaining unpaid claim balance of $6,578,916; 199 corporations have re- ceived payment of $241,441,491 leaving 161 corporations with a remaining un- paid claim balance of $94,700,830. There are now $5 mull ion in the fund available for distribution and there may be additional funds up to $15 million available for later distribution. The amendment made by the House proposed a payment priority which waled satisfy all individual claims up to $500.000 and pay up to $50,000 on each corporate claim with the balance of any funds remaining after these priority awards to be divided prorate by the car- Pens tions: The Senate Judiciary Committee held a day of hearings on December 3, 1974, at which all interested parties were heard. After consideration by the Judi- ciary Committee the Senate disagreed to the House amendments and the bill went into conference committee. The comparative difference between the :resent law, the House amendment and the Senate compromise?which was accepted by the House isexplained in the papers which have been placed on the desk of each Member. The centre,: argument, I presume, will be whether or not some preference in favor of individuals should be given in- stead of a general pro rata. The differ- ences are found in the schedule placed on the desk of each Senator. In the left-hand column will be found what is known as present law, where the $5 million which is on hand today is di- vided equally among corporations and individuals. The House bill, which the Senate Cominittee on the Judiciary turned down, would not have included the corporations in that distribution. The compromise reached by the confer- ence committee retained that section of the present law. The difference comes in thereafter. .The individuals would receive UP to $250,000 of their claim; and from that point on, all moneys would be paid on a pro rata basis, whether they are individ- uals or corporations. When we consider the amount to be paid out, let us say, for final distribution, we find that under the present law, 15 tO Percent, or 15.1/2 cents of every dollar, will be paid to the venous claimants after the paynient of the $5 million. Under the House bill, the rate of dis- tribution would be 9% cents out of every dollar. Under the COinproMise position, which takes a position more or less mid- way between the two, we find that, under the compromise position, adopted by the House in the conference report, the re- maining balance of pro rota distribution would be on the basis of 124 cents of every dollar. It can be seen that the conference com- mittee struck a ground more or less be- tween the present law arid the House amendments. Why do we have a tilt toward the in- dividuals in this distribution? These are the reasons: First. Individual award o are based on the loss of homes, personal belongings and family businesses. In most cases? the individuals lost all they had. The cor- porate awardholders are almost exclu- sively large multinational corporations that lost only a small fraction of their total assets-. The corporations suffered losses, but the individuan suffered dis- asters. Second. About 77 of the corporate awardholders have taken more than $35 million in tax deductionS as a result of their losses and have had the use of the money they saned for over ro years. -We were advised at the healing that no in- dividual a warcholders took tax deduc- tions. Third. While it is true that under the law, if a corporation took a tax loss it had deducted from its award an amount equal to the tax benefit it received, it should also be -noted that under section 2017(e) (b) of tele 50 appendix, any pay- ments received under the War Claims Act were declared exempt from Federal in- come taxation. No individual was granted an exemption from taxatioli and the staff of the Senate Committee on Finance pre- pared a memorandum for our hearings advising that under the Internal Revenue Code individuals who e re fortunate Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2001/08129 : CIA4RDP75600380R000500380004-6 December 19, 1974 CONGRESSIONAL RECORD ? SENATE , S 22195 enough to receive from the War Claims FUnd an amount equal to 100 percent of the adjusted cost basis or such may be sUbject to income tax either on a capital gain basis. or as ordinary in- tome. Thus, some oT the corporations Who took a taxleie and Who hive or vJill re- ceive 100 percent Of their claim will be exempt from taxation. Records of the War Clainia Coin-Mission show that Some corporations took tax losses as small as $300 or $400. Fourth. Many of the individual awardholders are elderly Persons. -Many of them live on Sinai', .fixed incomes and receive little th the'way of 'social security payments since their productive years were oefit abroad. Their war claims awards represent a final financial Stake to support them in their declining years. A few individuals earned some wealth by their efforts as ttr Vtarld War but in this regard it must e noted that under the coMPromise language, the six largest- Indiviclual.clairns will not be paid in full but will be affected by the $250,000 Fifth. In order- to receive an award, claimants had to provide documentary proof of their ownership of the property that had been lost. Many individuals lost their documents in the war. U.S. corpora- tions, which maintained ektensive records in this country, were able to document a much zreater Percentage of their losses and hence received awards to cover a larger portion of their lessee. sixth. All indlyidtial awardholders are U.S. citizens. Many' of the stockholders of the corporate awards are foreign na- tionals. The basic theory of the War Claims Act i.' to oarnpensate U.S. citizens. The priority for individuals furthers that purpose. " Mr. Pre,sident, I believe that this com- promise should be accepted. There is, as I say, a Small tilt 'toward the Individuals, and I think it is adequately justified. The PAHSEDI1g+, OFT:Ictit. The question is on agreeing to the conference report. r.TUNNEV:,. gr. President, I com- pliment the Cilstirlguislied Senator from North ttakeity, for,t#e Work he has done, with the distinguished Senator from Hawaii and the distinguished Senator from Indiana,. as an ad hoc subcommit- tee of the COinnatke Con the Judiciary, in working out a compromlse proposal to the House i on he War Claims Act which X iPJ?s most acceptable, or should be 4;tptable,to the Senate. It is Cleartlt Qopgress has consist- ently interposed its jnAfinlerit on pri- orities for payment Of war claims. There is ample precedent that Other than pro rata payments be made. Congress has al- ready created priorities for death and personal injury claims, for charitable and, nonprofit institutions, for small bilsinesses, and awards up to $10,000. he past practice has been for Con- gress to adjust the paymentschenie based upon equitable considerations. This is what is being proposed by., the Senator from North Dakota in the legis- lation that was passed by the Senate Committee on the Judiciary a few days ago. I personally feel that individuals are entitled to some priority consideration as related to the claims that they have and that corporations have for losses that occurred in the last war. This bill established such a priority through a four-level payment scheme. The first priority gives each individual claimant the amount of his claim, up to $24,000. On the other hand, it does seem clear that, where we have a claim up to $24,000, corporations?and some of them are relatively small?are entitled to some consideration, too. The second priority gives corporations a priority distribution after individuals, up to $24,000. Then the bill gives individuals a third priority claim, up to the amount of his award or $250,000. Thereafter, all claims are dis- tributed pro rata. We are trying to meas- ure fairly what is justified in the way of a claimant's receiving adequate com- pensation for the losses that were in- curred, and I think this procedure gives a fair adjustment of the equities. I know that theie are some who feel that individuals should not be entitled to any priority considerations. There are others who feel that corporations should not receive a nickel until the individuals have their claims paid off in tote. I cannot help feeling that the prob- lem resembles a Gordean knot, and that there is, in an absolute sense, no right or wrong. I think that the committee has worked out a scheme which, from my point of view, is eminently fair. I compliment, again, the Senator from North Dakota on the presentation that he has made, and the Senator from Hawaii for coming forward with a pro- posal to our committee and to the Sen- ate that attempts to sift through the various claims and counterclaims, and manages to bring out what I consider to be the most equitable response to a difficult problem. In the end, I feel the in- dividuals are entitled to this limited pri- ority because the nature of their losses was More severe than the losses of cor- porations. Individuals?all of them U.S. citizens of course?lost their homes, their personal belongings, their family businesses. Such losses are of a special nature, not like the loss of a large plant to some shareholders. Second, corporations were able to tax a tax deduction for those losses many years ago, and are not liable for tax on any war claims awards they receive. In- dividuals do not receive such tax bene- fits. One thing that it does seem to me is clear is that we need to pass this bill this afternoon. It is my hope that we will be able to do it without very much further argument. Therefore, I shall and listen to my own advice, and end my remarks. Mr. FONG. Mr. President, this bill, when originally passed by the Senate, was a very simple bill. It took care of the American civilian internees in Southeast Asia. It raised the amount which is to be paid to them from $60 to $150 a month while they were interned. If we do not pass this bill, these internees will be get- ting only $60 a month, instead of the comparable $150 which is now being paid to military internees. When this bill went to the House, the House added to the Senate-passed bill an amendment which would have re- pealed a present provision of the War Claims Act to pay corporate and individ- ual awardees the next installment on their claims. Up to now, Mr. President, under the War Claims Act, death and personal injury claims have been paid in full. small business awards have been paid in full. Awards under $10,000 have been paid in full. Awards to religious and charitable organizations have been paid in full. Each awardee, whether corporate or individual, has been paid $10,000, plus 61.3 percent of the award. In 1970, we provided for an additional $35,000 payment to each awardee. Of this $35,000, $11,000 has been paid. The House would have nullified the provision for the payment of the balance of $24,000. This the ad hoc committee, with the endorse- ment of the Committee on the Judiciary in executive session, rejected, The Rouse accepted that decision. The corporations will receive the money they were to receive under present law. That Is, they will receive the $24,000 which the House, in their amendment, refused to give to corporations and which we have restored in this conference. Then the House originally proposed paying all individuals in full. The ad hoa committee cut the $500,000 limit pro- vided in the House amendment, which actually would have paid all the individ- ual applicants in full, by half. Instead of giving full priority to individuals who suffered a loss, we limited this payment up to $250,000. There will still be, I believe, six indi- viduals who will not receive payment in full, but, rather, will share with corpo- rations, pro rata, in the distribution of these war claim funds, as they become available. We had good reason, in the circum- stances presented to the ad hoc commit- tee, to make this recommendation for a preference in treatment of the indi- viduals involved here. Some of the reasons which compelled the ad hoc committee to act this way are as follows, Mr. President. One, it was harder for individuals to prove their claims, as their records were largely destroyed in World War II. Thus, not all their claims were necessarily awarded them. Second, for many individuals, the lost asset was frequently his only personal or business asset. They had family hold- ings for generations totally wiped out. The lost asset was only one asset of the corporate awardees?they did not lose all their capital. Three, many corporate claimants, es- pecially those whose claims are now un- der $50,000, are insurance companies on a subrogated basis under war risk insur- ance. It is for the assumption of this very risk they were paid their premium. That was their business, to insure these assets. Four, corporations were given and took tax losses in the 1940's. No individual took a tax loss for the lost asset. Corpora- tions, when they took that tax loss, had the use of that money for the past 30- odd years. Not one individual has taken Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 S 2211)6 CONGRESSIONAL RECORD -- SENATE a tax kiss and, therefore, had no use of that- money for the past 30-odd years. Five," by statute, corporations which took a tax loss were given an exemption for the amount of the awards, as re- ceived. No such exemption was given individuals. Hence, corporations had no capital gains tax, while individuals paid tax as the money was paid them. Here, we gave preferential treatment to corporations as against individuals. Six, some of the corporations which took no tax loss did so because?the, asset lost had previously been fully depreci- ated; other tax deductions made this de- duction unnecessary. For example, some of the oemparties taxes were only :L per- cent to- 5 percent, so a tax loss was un- necessary for theme . Seven, furthermore, the present stock- holders of corporations would benefit from these payments, not the stockhold- ers of record at the time of loss. In the intervening years, from the dates of the losses in the 1940s, the corporate stock- holders have changed. Many of the stockholders have sold out, and other, new stockholders have purchased the stock. So, the stockholders who bole the loss will not benefit by what has been paid to the corporations. Unless the stockholder of record at time of the loss still holds the stock, he soldet at a lower price because of the lost assets. The per- son now holding the stock paid less for it for this asset has long been written off the corporate books. A payment to these corporations now would be in the nature of a "windfall" to present stockhceders. This -*Saw, Mr. President, has been changed several times. This is not the only three it has been changed. In the several changes, privileges have been given to 'benefit particular grOups as their needs were proved to Congress. In the conference report, the conferees made it clear that the amendments adopted were designed solely to provide an equitable solution under the particular facts now existing fn connection with these claims arising Out of World War II losses. There is no precedent being set by. this law. I repeat, we say that no precedent Is being set by this action. It is very late in the session. The House is adamant about its amendment. We were able to cut their amendment down to the point where we feel that it is a fair compromise. If this conference report fails, we penalize the civilian internees, who will only get 860 a month instead of the $150 a month peovided for herebe - So I urge the adoption of the confer- ence report. Mr. 13A.YH. Mr. President, the distin- guished Senator from North Carolina asked to be notified. I suggest the ab- sence of a quorum. Mr. ROBERT C. BYRD. Mr. President, will the Senator withhold that for a moment? Mr. BAYH. I am glad to withhole. ORDER TO PRINT TRIBUTES TO DR. RIDDICK AS A SENATE DOCU- MENT which will be made with respect to Dr. Riddick be collected and printed as a Senate document. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. ROBERT C. BYRD. Mr. President, I yield the floor. UNANIMOUS-CONSENT REQUEST Mr. ROBERT C. BYRD. Mr. President, I ask unanimous consent that all Fen- atolls have 10 days te file individual trib- utes to retiring Senators. The PRESIDING OFFICER. Without objection, it is so ordered. ......???????^111111111111101.... QUORUM CALL Mr. BAYH, Mr. President, I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The second assistant legislative clerk proceeded to call the roll. Mr. BURDECK. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. The question is on agreeing to the con- ference report. Mr. BAYH. Mr. President? The PRESIDING OFFICER. The Sen- ator from Indiana. Mr. BAYH. I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The second assistant legislative clerk proceeded to call the roll. Mr. ROBERT C. .BYRD. Mr. Presi- dent, I ask unanimous consent that the order for the quorum call be re- scinded. The PRESIDING OFFICER. Without objection, it is so ordered. ORDER OF BTJSINESS Mr. ROBERT C. BYRD. Mr. Presi- dent:1 ask unanimous consent to proceed for 1 minute. The PRESIDING OFFICER. Without objection, it is so ordered. H.R. 16215?AMENDMENT TO THE COASTAL ZONE MANAGEMENT ACT OF 1972 Mr. ROBERT C. BYRD. Mr. Presi- dent, I ask the Chair to lay before the Senate a message from the House on H.R. 16215. The PRESIDING OFFICER laid before the Senate H.R. 16215, a bill to amend the Coastal Zone Management Act of 1972, to provide more flexibility in the alloca- tion of administrative grants to coastal States, and for other purposes, which was read twice by its title. The PRESIDING OeViCER. Without objection, the Senate will proceed to its consideration. The bill was considered, ordered to a third reading, read the third time, and passed. ???=1?0111?11?11?1111. QUORUM CALL Decen;ber 19, 1974 The PRESIDING OFFICER. The clerk will call the roll. The second assistant legislative clerk proceeded to call the roll. Mr. cu:ans. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING ObeseCeat. Without objection, it is so ordered. Mr. CURTIS. Mr. President, I yield to the distinguished Senator from Hawaii. --...1?????1111111?41?????? PRIVILEGE or ME FLOOR Mr. FONG. Mr. President, I ask unani- mous consent that Mr. Robert Seto be allowed the privilege of the floor. The PRESIDING OFFICER. Without objection, it is so ordered. TRIBUTES TO SENATOR PETER - DOMINI CIC - Mr. 4:-.:URTIS. Mr. President, I am at. a loss for words when I express my dis- appointment that Senator PETER DOMINICK of Colorado will not be with us when the new Congress convenes next January. Senator Dolaenex is a most valuable Senator. I often referred to him as an Ideal Senator. Legislative tasks are like any other tasks. Success requires hard work. Sena- tor Domremat worked hard and has the respect of all-Senators. He possesses a keen mind and he knows what is going on in the field of legislation. If Senator DOMINICK served on a com- mittee, he mastered well the legislation that that committee would forward to the floor. Other Senators sought his opinion and. advice. He was not a fol- lower?he was a leader. Time and time again the Senate would be called upon to vote on a Dominick amendment. A Dominick amendment was always an amendment of substance and he backed it up with hard facts. clear logic, and a convincing argument. PETER Datenexcx combines all of the qualities that a good legislator should have, such as honesty, respect, dedica- tion, skill, background, knowledge, and a willingness to apply himself to the task at hand. In these troubled times, the Senate of the United States has had to deal with many issues of grave concern to our country. These have involved issues of national, defense, fiscal soundness, ad- herence to Constitutional principles and to our system of private enterprise. PETER DOMINIC:K could always be counted upon to be on the side of his ,3ountry on these important and crucial issues. Preasure groups, selfish interests, and self-aggrandizement never caused Sena- tor PETER DOMINICK to deviate from his high principles. Senator Dozarencx was always attentive to debates. When he spoke, be spoke withauthority because he was well erepared. His work has made a great coneribution to all legislation, but particularly legislation dealing with edueation, labor and managerhent mat- ters and legislation relating to our na- tional defense. - I sincerely hope that this distinguished Mr. ROBERT C. BYRD. Mr. President, Mr. ROBERT C. BYRD. Mr. President, Senator from my neighboring State of I ask unanimous consent that the tributes I suggest the absence of a quorum. Colorado will continue in the public Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 Approved For Release 2001/08/29 : CIA-RDP75B00380R000500380004-d December 19, 1974 CONGRESSIONAL RECORD -- SENATE ?rota c);p: 1A/sT.NFas , Mr. lgr44.0g.:,titr.gRes,idirik what js the presen Thex ferenCe Mr.' gest the a, OFFICER. The con- on S. 1728. * - 6 . . Mr. President, I sug- lice of a quorum. ? ICZ... M. PreSident, may I raise a point of order? There is no Inter- vening busWess, ?. ? The P#EWPQA`* OFFICER. There has not been ..a...liVe quorum since the last ,vote. Thereitas been intervening busi- hess and ,, the Senate just passed two bills. ?"..' , The clerkwill, call the roll. ceededgo the U. The assi4 nt, legislative clerk pro- , Mr, 4 Btr 7 c. BYRD. Mr. President, I ask un .lop consent that the order , for the quorum call be rescinded. . The pREsIvavo OFFICER, Without objection, itis so ordered. OF BUSINESS rt AT C. BYRD. NIL President, I ask Wanimous consent that pr. TAL- WAGS MaY proceed for hot to exceed 2 M1111,1,tex, to call uptiyo measures. The PrtEIDING OFFICER. Without objection it is so ordered IMPR? IC, NT, 1-1C oU4s.47?y OF UN- SE PfrsugaL4P.TAUP:r.S ? AbGE. Mr. President, I ask consent that the Senate pro- ceed_consideration of H.R. 2933, whieb.--,wp:o reported unanimously by the COMP4t.P. 9/1 AgricPlture and Forestry this ming, and Which hasheen cleared with the p.cting- majority leader and the acting minority leader. The PnEsivnici OFFICER, ,(Mr?. CHILES) . The bill will be stated by title. The assistant legislative clerk read as follows: A bill (Ha. 2933) to improve the quality of unshelled filberts Aria shelled filberts for marketing in the United Sates. , The PRESIDING OFFICER. Is there objection to the present consideration of the bill? There being no objection, the Senate ? proceeded to consider the bill. Mr. TAL1VIADGE. Mr. President, this bill amends the Agricultural Marketing Agreement Act of 1937 to include filberts as one of the commodities which are subject ?to section 8(e) of that act. Sec- tion 8(e) provides that whateYer grade, siZe, quality, or maturity regulations are In eaect ,under a Fed.eral.. Marketing Order fer,...certain doinesticaljy _produced comino.dMes, the sante or comparable reo tikenients must be applied to imports at commodity. ? PACKWOO.D, Mr, President, I rongly urge thaeBenate to approve H.R. 29$3, which is intended tO improve the tittality of unshelled filberts and shelled filtierts , for marketing in the United Eit4a,tee? On 1111ay 18 of this year I introduced S. 3539, which is identical to H.R. 2933. It pasSed the House on Pecember 16 and was Unanimously approved by the Sen- ate Agriculture Committee yesterday. Mr. President, the filbert industry in this country is concentrated in the Northwest, with roughly 90 percent of the national filbert production coming from Oregon and the remainder from the State of Washington. Senators HAT- FIELD, MAGNUSON, and JACKSON join me in strongly supporting this legislation. What H.R. 2933 does is quite 'simple. It would include filberts as one of the cOmmodities protected under s of the Agricultural Marketin ment Act of 1937, as amended. provisions of ? this section, quality standards currently a domestic producers would be Imported filberts. Mr. President, this legislati sents a sincere effort on the p filbert industry to upgrade the its product. I commend the m this industry for acting to a the quality of their product highest standards. Without men t to secitort Be of the A Adjustment Act, grading sta only applied to filberts in the the shelled filbert market tha to intense competition of ung Agree- der the g de and lied to plied to repre- t of the uality of bers of ure that eets the amend- ricultural dards are shell. It is is subject aded, poor quality imports. The purpose Of this leg- islation is to require the sam0 standards of imported shelled nut meats as do- mestic producers have imPosed upon themselves. Mr. President, even though the State Department has indicated its disap- proval Of this legislation, they cannot deny the depressing effect which poorer quality imports have on the domestic market. There is no need for further delay of this act of equity. It is time we recognize the plight of this small but important segment of our agriculture industry and give theni an opportunity to compete in the market place on a fair and equitable basis. I urge the adoption of H.R. 2933. - The PRESIDING anoiCER. The bill Is open to amendment. If there be no amendment to be proposed, the question Is on the third reading of the bill. The bill was ordered to a third read- ing, read the third time, and passed. DItoicehRENT MINIMUM GRADE STANDARDS FOR GRAPES AND PLUMS Mr. TALMADGE. Mr. President, I ask unanimous consent that the Senate pro- ceed to the consideration of H.R. 13022, which was reported unanimously by the Committee on Agriculture and Forestry on yesterday. The PRESIDING OFFICER. The bill will be stated by title. The assistant legislative clerk read as follows: A bill (Ha. 13022) to amend the Act of September 2, 1960, as amended, so as to au- thorize different minimum grade stand- ards for packages of grapes and plums ex- ported to different destinations. The PRESIDING Or iCER. Is there objection to the present consideration of the bill? There being no objection, the Senate proceeded to consider the bill. Mr. TALMADGE. Mr. President, this nL) S 22201 bill would amend the act of September 2, 1960, which authorizes the Secretary of Agriculture to establish and enforce uniform grade standards for packages of grapes and plums exported from the United States. The PRESIDING OFFICER. The bill Is open to amendment. If there be no amendment to be proposed, the question Is on the third reading of the bill. The bill was ordered to a third read- read the third time, and passed. WAR CLAIMS ACT?CONFERENCE REPORT The Senate continued with the consid- eration of the report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the House to the bill (S. 1728) to in- crease benefits provided to American ci- vilian internees in Southeast Asia. The PRESIDING OFFICER. The ques- tion is on agreeing to the conference re- port on S. 1728. Mr. BAYII addressed the Chair. The PRESIDING OFFICER. The Sen- ator from Indiana is recognized. QUORUM CALL Mr. BAYH. Mr. Pictielai&J,,maitagesi the absence of a acti . The PRESIDING atovICER. The clerk will call the roll. The assistant legislative clerk pro- ceeded to call the roll. Mr. HUDDLESTON. Mr. President, ask unanimous consent that the order for the quorum call be rescinded. Mr. BURDICK. I object, Mr. President. The PRESIDING OFFICER. Objection is heard. The assistant legislative clerk contin- ued with the call of the roll, and the following Senators answered to their names: [No. 576 Leg.] Aiken Curtis Bartlett Dominick Bayh Ervin Biden Fong Buckley Fullaright Burdick Griffin Byrd, Robert C. Huddleston Chiles McClure Moss Nelson Pell Sparkman Symington Talmadge The PRESIDING_Or WER. A quorum is not present. Mr. ROBERT C. BYRD. Mr. President, I move that the Sergeant at Arms be directed to request the attendance of absent Senators. The motion was agreed to. The PRESIDING 0.m.CER. The Sergeant at Arms will execute the order of the Senate. After some delay, the following Sen- ators entered the Chamber and answered to their names: Abourezk Fannin Allen Goldwater Beall Gravel Byrd, Gurney Harry F., Jr. Cannon Case Church Clark Cook Cotton Cranston , Hansen Hartke Haskell Hatfield Hathaway Helms Hollings Hruska Dole Hughes Dbmenici Humphrey Eagleton Inouye Approved For Release 2001/08/29 : CIA-RDP75B00380R000500380004-6 Javits Johnston Laxalt Long Mathias McClellan McGovern McIntyre Metcalf Metzenbaum Mondale Montoya Muskie Nunn Packwood Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 S 22202 Pastore Scott, Hugh TO.ft Pearson Scott, Thurmond Proxmire William L. Tower Randolph Stafford Tunney Ribicoff Stennis Welcker Roth Stevens Williams Schwelker Stevenson. Young CONGRESSIONAL RECORD ? SENATE Goldwater Gravel Griffin Hansen Hartke Haskell Hatfield Hathaway Helms Hollings Huddleston Johnston The P illiefiNG OFFICER. A quorum oki ? WAR CLAIMS ACT?CONFERENC REPORT The Senate continued with the con- eideration of the report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the House to the bill (S. 1728) to increase benefits provided to American civilian in- ternees in Southeast Asia. The PRESIDING OFFICER. The clues- tion recurs on agreeing to the conference report on EL 1728. Mr. ERVIN. Mr. President, this con- ference report should be rejected. We have these war claims. There is a limb, to the amount of assets. The conference re- port, in effect, would have Congress bless with its approval a most discriminatory division of the assets that are available to the creditors. The conference report, in effect, says that all the corporate cred- itors will hi excluded, or at least thet all of the ind:vidual creditors will be given priority. Corporations are owned in equity by individuate, and those individuals who are entitled, to share he the corporate assets are just as much entitled to have their corporate claims paid as the in- dividuals who have individual claims. Some of the individual claims are am Mg the largest claims, which would swallow up a large part of the assets. I have always heard that equality is equity. The assets that are available for the payment of all creditors ought not to be diverted to the payment of only a few of the ereditors. So, at the proper time, / intend to move that the conference report be laid en the table. I do not wish to cut off debate. Mr. EITIADICK. Mr. President, will the Senator Yield? Mr. trttlart. I yield, Mr. BM/WM Is the Senator aware that this is a War Claims Act of 1948, and that both In 1982 and in 1970 we have adjusted, and again today we are adjusting, the priorities between the var- ious peoPit? Does the Senator reilize that all-the nonproperty claims have been paid, that is, all the personal in- jury claims have been paid for individ- uals, and that on the property damage claims everyone has been paid $10 000, that everyone has been paid 61.3 per- cent, and that the 1970 law provide for the payment of $35,000, of which $11,000 has already been paid? Mr. ERVIN. Yes, but this would pay certain creditors to the exclusion of others. Mr. BTJRDICK. Is the Senator aware that certain tax benefits that in to the corporations do not inure to individ- uals? Mr. ERVIN. I am not aware that any corporation has tax benefits that are not available to individuals standing in the Mr. BURDICK I will read the identi- flea lion Of the section. It is section 2017 (e) (a) of title 50 appendix. Mr. ERVIN. Well, Mr. President, the fact that people have sinned in times past, and the fact that a legislative body may have sinned in eimes past, does not Justify a continuation of the sinning. If we have sinned in times past, it is all the more reason why we ought to get righteous today. Unless somebody else wants to speak, I move that this cent erence report be laic on the table, and I ask for the yeas anti nays. The PRESIDING OFFICER. Is there a sufficient second? 'I he yeas and nays were ordered. The PRESIDING OFFICER. The ques- tion is on agreeing to the motion to lay the conference report on the table. The clerk will call the roll. The assistant; legislative clerk pro- ceeled to call the roll. The PRESIDING OFFICER. The Sen- ate will come to order. Can we have quiet In the Senate. The S mate will please come to order. The clerk will withhold calling the roll until the Senate comes to order. May we have order in the Senate so that we can resume the call of the roll. May we have order in the back of the Senate so we can resume the calling of the roll. The clerk will resume. The assistant legislative clerk resumed and concluded the call of the roll. Mr. ROBtatT C. BYRD. I announce that the Senator from Texas (Mr. BENT- sElf), the S,enator from Mississippi (Mr. EASTLAND), the Senater from Arkansas (Mr. FULSRIGH T) , the Senator from Michigan (Mr. HART), the Senator from Washington (Mr. JecicsoN), the Sena- toi from Massachusetts (Mr. KENNEDY) , the Senator from Washington (Mr. MaGNI1SON), and the Senator from Wyo- ming (Mr. MeGEE) are necessarily ab- sent. further announce that the Senator from Montana (Mr. MANSFIELD) is ab- sent on official business. ( further announce that, if present ard voting, the Senator from Wash- in ;ton (Mr. :MAGereeoN) would vote "yea." f further announce that, if present, ar d voting, the Senator from Massa- chusetts (Mr. E:ENNED'? and the Senator from Washington (Mr. JACKSON) would vete "nay." Mr. GRIrreN. I announce that the Senator from Tennessee (Mr. BAKES), the Senator from Oklahoma (Mr. BELL- MON ) , the Senator from 'Utah (Mr. BEN- wiry), the Senator from Tennessee (Mr. Beocet), the Senator fi oin Massachnsetts (Mr. BeocueE), and the Senator from Envie (Mr. Peeev) are necessarily ab- sent. The result was announced ?yeas 50, nays 35, as follows: 577 Leg.] YEAS-59 Alen Byrd, Curtis rtlett Harry F.. Jr. Dole BE vh Cannon Domenici 13( all Case Dominick Bilen Chiles Ervin Approved For Release Abourezk Aiken Burdick Byrd, Robert C. Clark Cook Cotton Cranston Eagleton Fong Gurney Hruska Baker 13ellmon Bennett Bentsen Broek December 19, 1974 Laxalt Scott, Long William L. McClellan Sparkman ' LicClure Stennis Montoya Stevens 14unn Symington Packwood Talmadge Pea.rson Tower Proxmire Weicker Randolph Williams llibicoff Roth NAYS-35 Hughes Nelson Humphrey Pastore :Inouye Pell davits Schweiker :Mathias Scott, Hugh :McGovern Stafford McIntyre Stevenson Metcalf Taft Metzenbaum Thurmond :Mondale Tiftiney :Moss Young Muskie NOT VOTING -15 :Brooke Kennedy Eastland /Magnuson Fulbright Mansfield Hart MaGee Jackson Percy So Mr. ERVIN'S motion to lay an the table was agreed to. The PRESIDING OFFICER. What is the will of the Senate? May vie have order in the Senate. please? The Senate will come to order. ORDER OF BU SIN Mr. ROBERT C. BYRD. 1Vr esident, I ask unanimous consent that Mr. NEL- soN may be recognized to call up a con- ference report on H.R. 14449 and that there be a time limitation on the discus- sion of that conference report of 10 min- utes equelly divided between Mr. NELSON and Mr. Derr's. The PRESIDING OFFICER. Without objection, it is so ordered. COMMUNITY SERVICES?CONFER- , ENCE REPORT Mr. NELSON. Mr. President, I submit a report of the committee of conference on H.R. 14449, and ash: for its immediate consideration. The PRESIDING OFFICER (Mr. Curers). The report be stated by title. The assistant legislat: ye clerk read as follows: The committee of cotif:Tence of the dis- agreeing votes of the two Houses on the amendments of the Senate to the bill (H.R.. 14449) to provide for the mobilization of community development and assistance serviceS and to establish a Community Ac- tion Administration in tile Department of Health, Education, and Welfare to adminis- ter such programa, having met, after full and free conference, have agreed to recom- mend and do recommend to their respective Houses this report, Signeti by a majority of the conferees. The PRESIDING OFFICER. Is there objection to the consideration of the conference report? There being no Objection, the Senate proceeded to consider the report. (The conference report is printed in the House proceedings of the CONGRES- SIONAL IZEGORD of today, same position. Blibb burch F1/08/ : CIA-RDP751300380R000500380004-6annin Mr. NELSON. Mr. President, I ask Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 December 19, 1#74 CONGRESSIONAL RECORD ?HOUSE 1112349 1111A, which may come in play in ap- ?propriate cases of rule viola ens, as well as in other clearly defined circ tances. The consumer redress provi , as a whole, is a significant advance eon- suiner protection, for it, together ith the carefully drafted class action pr - Mr. MOSS. Mr. Speaker, I yield to the zions in title L should provide an answlbe gentleman from Texas (Mr. Ecanenex) to the multifaceted and, perennial prob-\ such time as he may consume. lent of class actions. In part because of (Mr. ECKHARDT asked and was my objections, a sithilar consumer re- en permission to revise and extend his dress proVision was defeated on the floor re of the House. f was initially opposed to _the a4dition of such a provision in con- gent' -lerence because it was being added with- BROY ant an opportUnity for hearings to permit establish the public -to -be heard and without full between :recognition of what we were doing to making pro clearly spell out the authority of the FTC istrative Pro to seek consumer redreSs; However, I is very impor acceded to the provision finally adopted stand exactly w because it seeks to provide protections There is a pro Against unfairness and is aimed at mak- report which states ing *hole these coneumers who actually if the Commission show injury from a rule violation or there are disputed issu knowingly dishonest and fraudulent and (2) that it is nee evs ctices. issues, interested persons 10 present such rebuttal su AIR* PPITAL, 11,ES, zonduct (or have conducted One aspeet of 'the civil penalties pro- sion) such cross-examination o lelsion deserves coltan exit because the menting orally as the Commissio idea involved is a relatively new one. 'to be appropriate and required ro The penalty provisions permit the FTC, true disclosure with respect to after it has obtained a cease-and-desist The only disputed issues of material order, to go into cburt to obtain civil be determined for resolution by th znission a those issues characte pen realties for the conduct subject to the issues of specific fact in contrast to order if it was engaged 'in with actual tive fact. knowledge that the conduct was unfair or deceptive and in violation of section 5. Sometimes, in dealing with a joint acheme_, the Comniission will proceed ? 'against only some- df the persons In- volved in the joint attion. We have added ta SEM PrOVISfora vviiich will now enable the PTC to seek civil penalties in court against the other persona 'involved in the scheme 'but ridt technically parties to the initial rre proceeding and thus net,tectiniCally subjeetto the cease-and- desist order. I might add, course, that these persons Will -be entitled to their day in court before being assessed with penalties, and for that reason are granted A de haw) 'trial on all factual issues in the penalty actian. . _lute Thr -,rrra cdtrars The -conference re/16ft contains one p.lovision that gives me a good deal of ecne?i That provision is the one that grants to the Pelleial Trade Commission the authority to represent itself through Its own attorneys n the Supreme Court under certain CircurbArades. This pro- vision was added to the Conference re- port despite great einfeSsions of concern from the chief legal officers of the United States, the AttorneyTThrieral, 'former So- licitor General Ervin Griswold, and all -nine justices of the'Slififerhe *Court. What other expertise could- We possibly draw from? I would like to caution my col- leagues that if we allowthis type erosion of the Solicitor General's authority to roritinue, we *ill fragment what has tra- ditionally been a 'Central authority de- signed to coordinate a uniform poSition for Federal Government litigation., normLuerorf At in all, 'I believe the 'bin represents a reasonable comprcmise between the Senate and House versions and a respon- Approved For Release 2001/08/29 : CIA-RDP751300380R000500380004-6 sible piece of legislation. It completes the FTC reform begun with the amendments to the Alaska pipeline bill, and these two bills together constitute an important new consumer protection measure for which we shciuld all feel proud. ks.) ECKHARDT. Mr. Speaker, as the an from North Carolina (Mr. ) has just indicated, we are a new category somewhere adjudicatory and the rule- ss of the present Admin- ures Act, and I think it that we clearly under- t we are doing. on on page 33 of the at-- termines (1) that of material fact, to resolve such uld be entitled issions and to the Commis- rsons corn- etermines full and issues. act to om- as I point out the word "orally," and wish to find out if the gentleman from California (Mr. Moss) feels that that language is exclusive, or merely descrip- tive of the section dealing with oral presentation. Mr. MOSS. It is the intent and the understanding of the gentleman from California that the words "commenting orally" were intended to be descriptive, and not limiting. In other words, the Commission could authorize cross-exam- ination of written submissions if it deter- mined that it was appropriate. Mr. ECKHARDT. For instance, if the Commission should rely, in making a rule on a written report of one of its agents and crass-examination of that agent Is necessary for fair determination of the rulemaking procedure taken as a whole, the Commission should make that agent available for cross-examination. Am I correct in that? Mr. MOSS. The gentleman is indeed correct. Mr. BROYHILL of North Carolina. Mr. Speaker, will the gentleman yield? Mr. MOSS. I yield to the gentleman from North Carolina. Mr. BROYHILL of North Carolina. I thank the gentleman for yielding. I concur in the gentleman's interpre- tation. Mr. ECKHARDT. Each of us was on the conference committee, and I under- stand that to be in accord both with the language and with the discussions there; Is that not correct? Mr. BROYHILL of North Carolina. That is correct. Mr. ECKHARDT. I thank the gentle- man. Mr. MOSS. Do any other members of The committee at this time seek recog- nition? Mr. Speaker, I move the previous Question on the conference report. The question was taken; and the Speaker announced that the ayes ap- peared to have it. Mr. ASHBROOK. Mr. Speaker, on that I demand the yeas and nays. The yeas and nays were refused. So the conference report was agreed to. A motion to reconsider was laid on the table. APPOINTMENT OF CONFEREES ON HOUSE JOINT RESOLUTION 1180, SUPPLEMENTAL APPROPRIA- TIONS FOR FISCAL YEAR ENDING JUNE 30, 1975 Mr. MAHON. Mr. Speaker, I ask unanimous consent to take from the Speaker's table the House joint resolu- tion (H.J. Res. 1180) making urgent supplemental appropriations for the fiscal year ending June 30, 1975, and for other purposes, with Senate amendments thereto, disagrees to the Senate amend- ments, and agree to the conference asked by the Senate. The SPEAKER pro tempore. Is there objection to the request of the gentle- man from Texas? The Chair hears none and appoints the following conferees: Messrs. MAHON, WHITTEN, BOLAND, FLOOD, SLACK, CEDERBERG, MICHEL, and WYATT. RTHER LEGISLATIVE PROGRAM r. O'NEILL asked and was given pe ission to address the House for 1 min .) Mr. 'NEILL. Mr. Speaker, I would like to ake the following announce- ment. We ha scheduled for today the chrome b next. BY mutual agreement of both sid on this issue, it will be eliminated fr the schedule, and it will not be brough up for the remainder of the session. It ill be scheduled some- time early in th 94th Congress. AUTHORIZING A ECIINICAL COR- RECTION IN TH ROLLMENT OF S.356 s ution (S. Con. Pe\er, Mr. MOSS. Mr. S ' I call up the Senate concurrent re hes. 126) authorizing a, technical cor- rection in the enrollment .f S. 356, and ask unanimous consent for ts immediate consideration. The Clerk read the Sen concur- rent resolution as follows: 5. CON. RES. 126 Resolved by the Senate (the Hou of Rep- resentatives concurring), That the retary of the Senate is authorized and dir ted, in the enrollment of S. 356, An Act to rovide disclosure standards for written co uzner product warranties against defect or al- function; to define Federal content s nd- ards for such warranties; to amend the oral Trade Trade Commission Act in order to prove its consumer protection activities, a d for other purposes, to make the followl technical correction: ? Section 18(e) (3) (A), as inserted by sec.- 2.? Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 1112350 CONGRESSIONAL RECORD ? HOUSE tion 202(a) of the Conference 'Report on such bill, is amended to read as follovic "(A) the court finds that the ()Guam's- sion's action is net supported- by substantial evidence in the rulemaking record (as de- fined in paragraph (1) (B) of this subsection) taken as a whole, or", The SPEAKER. I. there ob eetion te the JAireit of the gentleman from Cali- . lorries? - There was no objection. Mr. MOSS. Mr. Speaker, I Indicated at the time of My statement on the con- ference report that I Intended to offer this essential resolution in order to clarify an understandieg of the con ferees. We feel that the standard of re- view could be betteet expressed an follows The court shall hold unlawful and Sc. aside the rule on certain grounds specifieu in the Administrative Procedures dkot Or And now I quote from the; resolu- tion---11? the otutt finds that the Commissioa's action Is not supported by substantial evidence in the rtile-making record (as defined in para- graph (1) (5) of this subsection) t3ken as a whole, or. This, Mr. Speaker, is strictly to clarify and make very clear the intent of the conferees and to do it through the con- current resolution SO that there will be no poSSibility of error. Mr. Speaker, I yield to the gentleman from North Carolina, Mr. Beaver-Lee. MrannoyHru, of North Carolina. I thank the gentleman for yielding. Mr. Speaker, it is necessary to clarify the language Iri the conference report, not because of any disagreemene among the conferees but because of some legal Interpretation of the language which was inoluded in the conference report. We want to make crystal clear that any rules that are issued lpy the commission must Nal/steed upon the substantial evidence that Is; developed in the consideration of the rile. That is the Purpose of the araerielment?to clarify the provision in the Judicial Review section. Mr. MOSS. I thank the gentleman. Mr. Speaker, I urge adoption of the concurrent resolution. The Senate concurrent resolution was concurred in. A motion to reconsider was laid on the table. GENERAL LEAVE Mr. MOSS. Mr. Speaker, 1 ask unani- mous consent that all Members may have 5 legislative days in which to extend their remarks on the Senate concurrent reso- lution just concurred in. e"'"'""a""rfiLaelliaagEn. Is there objection to the request of the gentleman from Cali- fornia? There was no objection. WAR CLAIMS ACV AMENDMENTS Mr. KOKEIARDT. Mr. Speaker, I call up the Conference rePort on the Sen- ate bill (S. 1728) to increase benefits providel to American civilian internees in Southeast Asia, and ask unanimous consent that the etaternerit of the man- agers be read In lieu of the report;.. The Clerk read the title of the bill. The SPEAKER. Is there objection to the request of the gentleman from Texas Mr. ASH131/008. Mr. Speaker, reserv- ing the right to object, is there a printed report? Mr. ECKHARDT. There is. Mr. ASHBROCK. Mr. Speaker, further reserving the right to object I take this . time to ask if there is anything in the conference report that is not germane. Mr. ECKHARDT. No, there is riot. Mr. ASHBROOK. Mr. Speaker, I with- draw my reservation of objection. The SPEAKER.. Is there objection to the request of the gentleman from Texas? There was no objection. The Clerk read the statement, (Par conference report and statement, see proceedings of the House of Decem- ber 17, 1974.) Mr. ECKHART/T. Mr. Speaker, on August 12, 1974 the House passed amend- ments to the War Claims Act of 1948 to Increase benefits provided to American civilian internees in Southeast Asia and for other purposes. The House language differed from the Senate and a confer- ence, was needed. The conference report has been filed and it is a good report. It reflects the give and take that one expects in a conference between two bodies. I will summarize briefly the recom- mended solution. :First, both the Senate bill and the House amendment increased the authorized detention benefits for American civilians during the Vietnam conflict from $60 per month to $150 per month in order to raise the benefits for civilians to the same level presently authorized for military Personnel. The conference substitute retains this pro- vision. Second, the House amendment would have eliminated the priority in existing law for all unpaid award holders, both Individual and corporate, up to $35,000. The conference substitute retains this priority under which $11,000 has already been paid to each award holder. There- fore, $24,0011 or the unpaid balance of each remaining award, whichever is less, will be paid under this priority. Since each corporate award holder will receive up to $24,000 under this pro- vision, the language in the House amend- ment providing an additional priority for payments to corporate award holders up to $50,000 was omitted from the confer- ence substitute. Third, the House amendment would have created a priority for all individual awards up to $500000. The conference substitute creates a priority for individ- ual awards up to $250,000. The conferees agreed that the equitable considerations favoring a priority for the payment of re- maining individual awards would be ade- quately recognized by the priority adopted in the conference substitute. The balance of amounts in the war claims fund will then be used to make pro rata payments on the remaining individual and corporate awards. While this legislation was pending in the House, the Department of Justice was Decembee 19, 1974 requested to ref late. from certifying funds for distribution to the war claims fund until this Congress completed ac- tion on Sy 1728. The Department agreed to this request. It is my Understanclinz that certain funds are now ready to h, cer titled by the De artment of Justice tel distribution to the War claims fund, are it is also my hope that this transfer and any future tram, Fors will be accom- plished as soon as possible upon enact - ment of this legislation. Mr. Speaker, the conference report re- fleets a reasonable resolution of the dif- ference; in the Sei ;ate and House mons-- urea. It will provide an equitable solution for the payment of the remaining awards from the war clams fund. I urge ite adoption. Mr. Speaker, I yield to the gentleman from North Caxoliea (Mr. BROYHILL) Mr. BROYHILL of North Carolina Mr. Speaker, I thaek the gentleman for yielding. I rise in support of the conference re- port. Members will recall when the bill was before the House, the issue was, are we going to give priority to individual clairnanes to the wer claims funds and, if so, how much tint priority would be in terms of dollars? The conference report says we are giving priority to claims of individual persons up to $250,000 and then those other claimants, ineluding corporations, would share on a pro rata basis in the balance of the fund, I think it is a good compromise. It is, in my opinion, a better bill than when It left the House, Al though I do still dis- agree with the priaciple of giving in- dividuals, this preference, as we have done here, at least we have a better bill than when it left the House. Mr. YOUNG of Illinois. Mr. Speaker, will the gentleman y ield? Mr. ECKHARDT. I yield to the gen- tleman front Illinois. (Mr. YOUNG of Illinois asked and was given permission to revise and extend his remarks.) Mr. YOUNG of Ildnois. Mr. Speaker, I would like to associate myself with the remarks of the distinguished gentleman from North Carolina (Mr. Becteerree). [Mr. YOUNG of Illinois addressed the House. His remarks uill appear hereafter in the Extensions of Remarks.] Mr, ECXHARDT. Mr. Speaker. T move the previous question on. the conference report. Th-.5previous question was ordered. The conference report was agreed to. A motion to reconsider was laid on tl table. GENERAL LEAVE Mr. ECKHARDT. Mr. Speaker, I ask unanimoui consent that all Members may have 5 legislative days in which to revise and extend their remarks on the conference report on 3. 1782, just agreed to. The SPEAKER. Is there objection to the request of the gentleman from Texas"here was no object ion. Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 STAfINTL ? STATINTL Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6 SENDER WILL CHECK CLASSIFICATION TOP AND BOTTOM UNCLASSIFIED CONFIDENTIAL I SECRET OFFICIAL ROUTING SLIP TO NAME AND ADDRESS DATE INITIALS 1 OP ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE Remarks $ Attached is a copy of the committee . report on S. 1728, in which you ? expressed an interest. This clears it for floor vote. . . ' ssistant Legislative Counsel ., cc: DDM&S FOLD HERE TO RETURN TO SENDER FROM: NAME, ADDRESS AND PHONE NO. DATE OLC 7D35 6136 7/19/74 1 UNCLASSIFIED CONFIDENTIAL I SECRET FORM NO. 237 Use previous editions 1-67 (40) Approved For Release 2001/08/29 : CIA-RDP75600380R000500380004-6