CONGRESSIONAL RECORD - HOUSE

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January 1, 1949
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Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 which I title VI a 60-da I think reasonabl from the V CONGRESSIONAL RECORD-HOUSE 9317 11 continues for 60 days title I charged with the duty of executing this tion bill, to guard against any fears that VI. about which we have had 7n... I.,~ assurance that the conference the reason .it-was them positi dent will si ing title I days. it left the H one respect. ifference, because I gentleman yield? disloyal to his coun- Mr. PATMAN. I d title VI for at least 60 laborers working co structinn of dams nd electric power and everybody in the e-War Department covered. You do not bad now. T1 three of us m House on this de did not sign the con- Mr. Speaker, it app ference report minutes to th [Mr. JENSEN]. Mr. Speaker, the gen- rest of us must figh tleman from Mi higan has made some weapons we have agal reference to the the amendment was adopted by a this House when e bill was before the stroyers. f June. Mr. SPENCE. Mr Every appropri . an from Texas House has passed the Congress and eaker, the gen- ision as my amend- hamper and interfere w h private busi- ment to the housin the language which 11 appropriation n,. of Congress, 8 vers everything ay it should be ary public and you can sell 50 Mr. JENSEN. That with me. thorities could not operate, t interfere with the local housi sume that they are just as patrio I yield the inutes. gentleman sing and people ust as- c as we woriiea 1 day The gentleman from Michiga ?lut it would WOLCOTT] in his statement that handling the pitulated and brought hark the law as we ordinarily do ea propriations bills. opportunity to Mr. JENSEN. I would er the law nor death to have them do so. this affidavit titles I and VI expired June 30, 1 e tickled to did contain such provision, and, in ad tion, an authorization of $500,000,0 this small more under title II. They were out fissions are money. So the bill not nnlu eaten language restricting the provi ions of the amendment to affect only the employees of the Housing Finance Agency and the Depa tment of Agriculture. an affidavit that they were uuuar s rojects. Local people will have-Charge-61 it, and we must assume that they are ho t d Now I ask the. chairman of e com- es patriotic American citizens and an mittee, the gentleman from em- being much opposed to them as any perso No a haven for left wingers and radio every shade from pink to deep red, sition to pinks and Reds in this co try. ich Furthermore, if the gentleman ap- ment would apply not only to those p ple who are permanently employed guards can be placed on each approp gnat Is a substantial change, and very much in favor of the House. Mr. WOLCOTT. Mr. Speaker, will the gentleman yield? think if you will read my remarks you to indicate that the conference was ex- plained many differences between the Mr. PATMAN. I am glad to have the understand it that way. I know we doubled the amount for rural housing, that is substantially, a ise. ould be O. K. Approved For Release 2000/08/11 : CIA-RDP57-00384ROO1000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9318 CONGRESSIONAL RECORD-HOUSE JULY 8 100-percent increase. We granted a of said Sadako Tatcagi, the Attorney General $500,000,000 increase in title II. We is authorized and , irected to record the law- f,,l admission for n rmanent residence of said - I think these are all substantial changes. Into the United States, upon the payment I hope that the conference report is by her of the req fired fees and head tax." agreed to. The amendme t was agreed to. Mr. SPENCE Mr. Speaker, I yield 1 minute to the g ntleman from New York A motion to re onsider was laid on the I Mr. JAVITS 1. table. Mr. JAVITS. Mr. Speaker, the con- troversy MINOR on the gnference report is the Mr. WALTER. Mr. Speaker, I ask same as the cont o rsy on the bill; thgse unanimous cone t to take from the who were agains tY bill are against the Speaker's desk i;h bill (H. R. 3127) to conference repo fo , ne reason or an-; authorize the aim scion into the United other, and those ho %eforthebillare States of Jacob ross, a minor, with publicans, including the provisi kkoot` the extension anti added fin.anFHA, which we th:k are very :im tained in this bill, but which was first 90 the provided for in thebill -4 ~ similar bills introdigced by 22 Democr Members. I hope those whp voted for the bill will vote for the cciiference :report and that it will be adopt d. Mr. SPENCE. M Speaker, we have. conference report. The previous quest 7n was ordere The conference report was agrees/to. A motion to reconsiil,er was laid ory the table. SADAKO TJKAGI Mr. WALTER. Mrj Speaker, I ask unanimous consent t take from the Speaker's table the bill (H. R. 823) for the relief of Sadako Takagi, with a Sen- ate amendment and con;ur in the Senate amendment. The Clerk read the title of the bill. The Clerk read the Serrate amendment, as follows: b; Strike out all after the enacting clause and insert: "That the provisions of the immi- gration laws relating to the exclusion of aliens inadmissible because of rah shall not here- after apply to Sadako Talgi, the Japanese fiancee of Lt. William M. 14arutani, of Chi- cago, Ill., presently a tubetcular patient at the Veterans' Adminie,tra'tlon Hospital in Waukesha, Wis., and a retired United States Army officer of World War If and that Sadako Takagi may be eligible for .n visa as a non- immigrant temporary visit4 for a period of 3 months: Provided, That the administrative authorities find that the said Sadako Takagi is coming to the United States with a bona fide intention of being matried to said Lt. William M. Marutani, and that she is found otherwise admissible under he immigration laws. In the event that the marriage be- tween the above-named parties does not occur within 3 months after the entry of said Sadako Takagi, she shall be required to de- part from the United States and, upon failure to do so shall be deported in accordance with the provisions of sections 19'and 20 of the Immigration Act of February 5, 1917 (U. S. C., title 8, sees. 155 and 1b6), In the event the marriage between the above-named parties shall occur within 3 months after the entry the House {'j The Clerk r'ead` the Senate amend- the enacting clause and purposes of the immi- e SP, AI`ER. Is there objection to of the gentleman from enate amendment was con- OF HEADS AND ASSISTANT HEADS OF EXECUTIVE DEPARTMENTS AND INDE- PENDENT AGENCIES Mr. SABATH. Mr. Speaker, I call up House Resolution 274 and ask for Its immediate consideration. The Clerk read the resolution, as follows : Resolved, That immediately upon the adoption of this resolution it shall be in order to move that the House resolve itself into the Committee of the Whole House on the State of the Union for the consideration of the bill (H. R. 1689) to increase rates of compensation of the heads and assistant heads of executive departments and inde- pendent agencies. That after general de- bate, which shall be confined to the bill and continue not to exceed 1 hour, to be equally divided and controlled by the chairman and ranking minority member of the committee on Post Office and Civil Service, the bill shall be read for amendment under the 5-minute rule. At the conclusion of the considera- th bill for amendment the Com- f for this legislation so that, he might keep some men who are ready to resign and who are needed in the most important positions of our Government. As a mat- ter of fact, some very able men have al- ready resigned. Originally the bill included an increase for employees of the District of Colum- bia and the Foreign Service, but these two categories have been taken care of by the House previously. This bill will provide an increase In salaries amount- ing to $1,237,000. I have the list of the increases provided for in the original bill, and I have also the list of the re- ductions that have been made by the committee that reported this bill. I am of the opinion that the committee has done a splendid job. They have re- duced many of the proposed increases from $25,000 to $20,000; some increases have been reduced by $5,000, by $3,000, and others by $2,000. ' I think they had in mind to try to hold down expenditures to the utmost. In view of the very earnest and care- ful consideration that has been given to this bill and the reductions that have been made by the committee in the pro- posed increases provided and asked for in the original bill, I do not think that we can do any better, as I said before. Mr. Speaker, our Government is the greatest organization in the world. It is obliged to legislate for approximately 150,000,000 people, and our Government transacted $142,000,000,000 worth of busi- ness last year. Its President and its di- rectors and those in charge of govern- mental affairs in safeguarding and pro- tecting the country's interests as well as those of its people, are obliged to cope daily with the most astute -and capable representatives of our great industrial and financial organizations. The Presi- dent, as head of this tremendous organ- ization, must by necessity have able and capable men to aid him in carrying out his duties and responsibilities. Mr. Speaker, this bill provides for a much-needed increase in the salaries of the President's aids and those upon whom he relies and trusts for the vast amount of important duties and functions that transpire daily. They are his household. The increases provided for in this bill and many others have been recommend- ed by the Hoover Commission, which en- gaged over 200 experts to investigate and recommend the ways and means for a tnon o mittee shall rise and report the bill to the bringing about economy in our great House with such amendments as may have Government. This bill does not go as far been adopted, and the previous question as the Hoover Commissoin report sug- shall be considered as ordered on the bill gests, which Commission, incidentally, and amendments thereto to final passage has spent almost $2,000,000 in its re- without ti on on to Intervening motion except one mo- search and investigations. This bill pro- vides recommit. for 244 increases. The gentleman Mr. SABATH. Mr. Speaker, I yield from?Kansas [Mr. REES], former chair- myself such time as I desire. man of the Committee on Post Office and Mr. Speaker, this resolution makes in Civil Service, feels that there should be order consideration of the bill (H. R. at least 60 more, and I say at least 100 1639) which increases the rates of com- additional increases, for I feel that many pensation of the heads and assistant of those not included but that should be, heads of executive departments and in- are those that do the hardest and most dependent agencies. It provides for 1 Important work. This also applies to hour general debate. those attorneys employed by the Depart- Mr. Speaker, I take it for granted ment of Justice, whose salaries should be that most of the Members are familiar increased by virtue of the fact that they with the bill and its purpose. The Pres- are obliged to continuously cope with the ident has requested, urged, and pleaded most astute and able corporation law- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE 9319 yers in the country, many of whom re- I think their opposition is purely politi- I intensely dislike calling your atten- ceive five and six times as great a salary cal because I do not feel that we are in tion to the fact that in 1947, when the as does the Government attorney, any danger of a recession. As I have private interests attempted to kill the I fully 'appreciate that the Govern- maintained, we are producing more than housing bill, rent-control bill, and labor ment cannot compete with private in- we ever did in peacetime, and this, not, bills, big industry started to lay off men dustry in that they cannot compensate withstanding the hue and cry of unem- in many instances, and started to create their employees as much as private in- ployment . As a m a tt er o f f act we had , , a recession and the resultant unemploy- dustry can afford to pay. It is indeed un- in June 1949, 59,619,000 people employed ment. Naturally, the Wall Street stock fortunate that many of these industries in this country, nearly 60,000,000. All speculators and manipulators have then have and are continuously hiring many this as against 61,615,000 employed in and are taking advantage of It now in an of our Government officials at two and June of 1948, or a drop of less than effort to hammer down the price of stock three times the. salary that the Govern- 2,000,000, and this is one-half the aver- and even bonds. But that is all specula- ment is paying them. I regret it is pos- age unemployment figures even in times tion and does not truly reflect the actual sible for industry to deprive the Gov- of the greatest employment. We will business condition of our country, be- ernment of many experienced men that always have that number and a greater cause these gentlemen are purely and we have, had from time to time, espe- number of unemployed due to a variety solely gamblers and almost 95 percent of cially in the Department of Justice and of conditions, such as illness, seasonal these transactions are speculative; less the Bureau of Internal. Revenue. I have shifts, and the like. Other unemploy- than 10 percent are legitimate sales. frequently criticized the practice of pri- ment will be brought about and has been . I promised that I would insert in the vate industry in taking from the Govern- brought about as a result of strikes under R EcoRn a statement showing the various ment its most ex eri n th ed T ft H p e c men, for the purpose of obtaining information. Fre- quently these men have information and experience, as well as knowledge, which private industry feels would be beneficial to them. I fully realize, Mr. Speaker, that some Members feel that the salaries of many other worthy individuals should be in- creased, notwithstanding this bill, that is, our district court judges, Congress- men, and Senators. Congress, as you all know, increased its salary a few years ago and made allowances for additional clerk hire. In this bill, for example, we Increased the salaries of the Federal Trade Com- missioners, who for years received only $10,000 per year, and the President was obliged to plead with these commission- ers to remain in the service of their country, because their salaries have not been Increased since' 1914, or 35 years. There are many others whose salaries have not been increased in 35 years, and others in 24 years, whose salaries are being increased in this bill, and rightly so. Therefore, I feel that this long- delayed and present increase Is more than justifiable. The only objection that will be made, and I know it will be made by the gen- fl-_ f rom h O io [Mr. BROWN] is that , we wait until all the other Hoover Com- mission recommendations are adopted. In answer thereto, I will state that some of their recommendations have been ap- proved, but unfortunately they are con- ditional and will require final approval by the House and no one can tell if such e a - artley Act-which these very gentlemen claimed would eliminate increases in this bill which I have pre- strikes. pared and which I now insert. As I have Our business and commerce is in splen- stated, the Committee on Post Office and did shape. Surely we have forced down" Civil Service has brought about the re- some of the unjustifiably high prices taiainene n of many increases that were con- which some of the industrial leaders d in the original bill. naturally dislike, but upon examining COMPARISONTOF SALARY CLASSIFICATIONS IN THE living are justifiable and warranted. I have before me figures showing the profits of 15 of the 25 largest corporations in America for the first quarter of 1949, and the comparative figures for the first quarter of 1948 as taken from Moody's Investor's Service Report. They cer- tainly indicate a healthy increase over 1948. First quar ter, 1949 First gnar? ter, 1948 General Motors Corp____.._.. $135 763, 338 $06 491 412 United states stool ______._.... 49, 928, 670 , , 27 857 341 T. I. du Pont de Ncmours...., 43, 581, 325 , , 30,195371 Socony Vacuum Oil Co....... 126 , 000, 000 133* 000 000 Texas Co--?--------- 28, 870, 111 , 27, 974, 839 26, 973, 000 38, 517, 000 Electric i 26, 702, 978 25 389 149 irornta : Std Oil 37, 389; 082 , , 37 904 106 Bethlehem Steel Co- _ 33, 129, 574 , , 15 490 331 Cities Service Co_____ _________ 18, 510, 903 , , 19 976 576 Union Carbide & Carbon co_ p 24, 629, 410 , , 23 010 722 P.incla ir 1 15000, 000 , , 121 000 000 Westinghouse Electric Co..... 10, 866, 921 , , 780 13:135 American Tobacco Cc --------- 10, 648, 000 : 7,495,000 I Estimated, I also have some figures that I obtained. from the Coordinator of Information of the House of Representatives which in- dicate further that a recession is not around the corner: action will take place before we adjourn. Cash dividend payments first quarter 1949 Consequently, I feel that Mr. BROWN'S compared with same period 1948 viewpoint is not justified, especially in Cash dividend payments: . view of the fact that this bill had been First quarter, 1948------ $1, 284, 000, 000 introduced 6 months ago and the appli- First quarter, 1949 ------ 1,384, 000, 000 cation for a rule was made last April. I There was a net increase of 8 percent withheld action on the rule in order to in dividends paid in 1949 over 1948. obtain the opinion of the American The net income of 52 corporations en- people. In this regard, I received letters gaged in retail trade for the fiscal year from a great many people all over the ending in the first quarter of 1949 was United States who approved this legisla- $360,000,000. tion, and approximately 2 percent from For the same period in 1948 the net people who were opposed to it. Conse- income was $306,000,000. quently, I have called the rule up now for The increase in net Income in 1949 over your consideration and action on the bill. 1948 was 17.4 percent for these 52 cor- There are some other gentlemen who porations. feel that because of economic conditions The total assets of these same corpora- they oppose this bill. It seems to me, tions increased in the first quarter of however, that most of these people are 1949 to $3,064,000,000 from $2,752,000,000 opposing this bill for the purpose of in the same period in 1948. stressing the so-called business recession. This is an increase of 11.4 percent. pensation provided for the heads of ex- ecutive departments and the Secretary of Defense, $25,000 per year. Section 2: Executives listed under this section in the original bill were to receive $22,500 per year. Under the committee bill they receive $20,000. Section 105 amended. The following changes were made in the pay of execu- tives listed under this section: Two White House secretaries reduced from $22,500 to $20,000. Three White House secretaries reduced from $20,000 to $18,000. Seven White House secretaries reduced from $17,500 to $16,000. Section 3: The executives listed under this section in the original bill were to receive $20,000. The committee bill re- duced this to $18,000. One exception: The original bill pro- vided $22,500 for the chairman of the Atomic Energy Commission. The com- mittee bill provides $18,000. Another group of executives listed un- der this section in the original bill were to receive $20,000. The committee bill reduced these to $17,500. Section 4: The executives listed under this section in the original bill were to receive $17,500. The committee bill re- duces them to $16,000. There are two exceptions in this sec- tion. The original bill provided $20,000 for the Board of Governors, Federal Re- serve, and for members of the Atomic Energy Commission. The committee bill reduces these to $16,000. Section 5: ? The executives listed un- der this section in the original bill were to receive $17,500. Under the committee bill they will receive $15,000. The committee bill adds the following executives who were not included in the original bill, to receive $15,000: Commis- sioner of Internal Revenue; Director, Bureau of Prisons; Director, Federal Bu- reau of Investigation; Commissioner of Immigration; Director, Rural Electrical Administration; Social Security Board; Reclamation Commissioner; Soil Con- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9320 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE JuLY 8 Nervation Commissioner; collector of customs; United States Forester; three special assistants to Secretary of Defense. Mr. Speaker, I am hopeful that this rule will be passed unanimously for it provides for much-needed legislation as I said before-legislation that is pointed in the right direction. (Mr. BROWN of Ohio asked and was given permission to revise and extend his remarks.) Mr. BROWN of Ohio. Mr. Speaker, I yield myself such time as I may desire. Mr. Speaker, at the present moment I find myself in one'of the most difficult positions that I have experienced since I have been a Member of this House. So I hope I may have as much of your at- tention as possible under the rather un- satisfactory conditions which prevail here in this temporary Chamber. As many of you know, I was the author of the legislation which created the so- called Hoover Commission, and have served as a member of that Commission for the past 2 years, and up to the termi- nation of that Commission last month. This legislation comes here, ][ presume, with the recommendation of the Presi- dent, that it be enacaed into law. In many ways it is, in substance at least, in line with the general recommenda- tions of the Hoover Commission. In the very beginning I should like to point out that the Commission did not make any definite recommendation as to the amounts of percentage of increases which should be grant.ad to various high- ranking officials in the executive branch of the Government. However, the Com- mission has pointed out, in its report, that the salaries of the lower grades of employees under the civil service have increased from 43 to 56 percent, while the salaries of those in the highest grades under civil service have been in- creased by but 15 percent. Then, after the Commission recom- mended that a careful study of the pay schedule for higher Government officials be made, it went ahead to say, and I quote: Similar action is considered essential for other top positions throughout all branches of the Government. Salaries for Cabinet officers have not, for example, been changed since 1925. To continue to quote from the, Hoover Commission recommendation: This is indefensible. Government can never compete on a dollar-for-dollar basis with private industry for persons for its top positions. It can and should, however, treat such persons in an equitable manner. This it is not now doing. or is not justified. Of course, I must con- tend it is extremely difficult for the Con- gress, or for anyone else, to attempt to say what a Cabinet officer should receive in the way of compensation, or what salary some other important official in the executive branch of the Government should receive. We had recommended to us, as a Commission, a suggested pay schedule for different public officials. 'Under the suggested pay schedule, it was recommended the President should have an annual salary of $150,000, Vice Presi- dent $50,000, Justices of the Supreme Court; $35,000, the Speaker of the House $25,000, Senators and Representatives- if you are interested-$20,000, heads of executive departments, $25,000-which Under Sec- s b - er means the Cabinet mem retaries $20,000, Assistant Secretaries acted, the Reorganization Act of 1949. $17,500, heads of independent agencies cannot possibly become effective under $17,500, and top career employees under 60 days, or before August 19, unless the the classified service $15,000. Congress should enact a joint resolution The Hoover Commission came to the approving such plans. conclusion, after a great deal of con- We have a number of bills now pend- sideration and deliberation, that it ing before the Congress to carry out, or should not recommend to the Congress to thput e into Hoover effect, the Commission. recommendations Jambes just what executive officials should have their pay increased or by how much. of the Committee on Rules, I had pro- As you can see, this pending bill would Posed that we not bring out this bill un- increase compensation of certain officials til we had first had the time and the op- by as much as '75 percent, so that a great portunity to pass upon the President's many of them would be paid consider- reorganization plans, as he submitted ably more than Members of the House or them, and to otherwise bring about Senate, and in many instances much greater economy and efficiency in the ex- higher pay than the judicial officers of ecutive branch of the Government; or the Government. at least until we have had an opportunity to enact and send to the President legis- But as I said a moment ago, no one lation such as, for instance, the bill for can tell what pay any public official is the reorganization of the Military Estab- really worth. I have known Cabinet lishment, now before the Armed Serv- officials who, in my opinion, were worth ices Committee, which would save a bil- 50, 100, or even a thousand times as lion or $1,500,000,000 a year, follow- much to the Government as the salary ing which we could, in good conscience, they were receiving. I have known other point out to our constituents and the Cabinet officials where, in my opinion, folks back home that one of the first the Government would have been better steps we had taken was to put into effect off to have paid $100,000 or so to have the recommendations of the Hoover them resign their positions and go home. Commission which will bring about it has been my contention, and I be- greater efficiencies and economies in the lieve it was the conviction of the Com- Government, and therefore, we feel that mission, I believe, that about the best the the men who will be responsible for mak- Congress can do is to try to fix a pay ing these new reorganization plans ef- schedule which will permit a Cabinet fective and workable are entitled to fair member, or any other high official of the compensation. executive branch of the Government, to Just one other thought. We have cov- be self-supporting while in office; so it ered at least a great part of the water- would not be :necessary for them to bor- front in this legislation. But not all row money; so that they could live in a officials of the executive branch are cov- decent way oh their salaries. In other ered. While I think the committee has words, it should not be necessary or es- done a pretty fair job, I believe there are ,sential for a person to be either a rich some instances where perhaps some offi- man or a crook in order to afford to hold cials have been given larger salaries than some of these positions. deserved and have missed a few officials I think the committee, and properly so, who are entitled to consideration. But has fixed the salary schedule for Cabinet remember one other thing. Until the members at $25,000. I have no objection President and the Congress have had an to that. My whole criticism of this leg- opportunity to study and to put into islation, and I do have criticism of it, effect the reorganization plans as recom- is its timing. The Hoover Commission mended by the Hoover Commission,' we did recommend an adjustment of the are not at all certain just what many of salaries of higher officials in the execu- these officials will have to do, or what tive branch of the Government. But their responsibilities will be. In fact, the Hoover Commission also made a we will not know whether some of them great many other recommendations. In will even be in office. It seems to me fact, they made 317' other recommenda- it is only good, sound common sense to tions as to how greater efficiency and have postponed consideration of this leg- economy can be obtained in the opera- islation until we first had an opportunity tion of the Federal Government, insofar to put into effect the economies and effi- as the executive branch is concerned. ciences which the Commission proposed Then in another recommendation the Hoover Commission discusses the career employees, and in recommendation No. 11, on Personnel Management, the Com- mission says: Congress should raise the present salary ceiling of $10,330 for career employees. At the same time it should increase legislative, judicial, and executive salaries at the level of assistant secretary, or its equivalent, and above. So I am not now contending that some increase in compensation for the benefit of the higher officials of the executive branch of the Government is not needed I am quite fearful that this bill is not timed properly. I am terribly concerned that if the first, or almost the first, of the Hoover Commission recommendations to be made effective is a law to increase saI- aries, that the charge may be made that the only interest of either the adminis- tration or the Congress has in the Hoo- ver Commission recommendations is in those particular recommendations which would increase the cost of Government rather than decrease it. The President has recommended this bill. He has acted under his proper rights and powers. But the President has also recommended a great many oth- er measures to us. He has sent to the Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE and which the President suggested in his reorganization plans. Certainly the President, who has sent us his reorgan- ization plans, is just as desirous of hav- ing them approved by the Congress as he is in having this one bill enacted. In other words, I think we are consider- ing this bill at the wrong time. The President, in recommending passage of this legislation, I am sure, had in mind that he also wanted these other reor- ganization plans and these other Com- mission recommendations made effec- tive, so as to obtain the economy and efficiency in the Government that we desire. Mr. McCORMACK. Mr. Speaker, will the gentleman yield? Mr. BROWN of Ohio. I yield. Mr. McCORMACK. I think my friend will admit that the President recom- mended increases in the executive branch before the Hoover report was made in its final report. Mr. BROWN of Ohio. Yes; that is correct. Mr. McCORMACK. So I think it is fair to say that the President probably knew in advance what the Hoover Com- mission recommendations would be, and I think it is safe to say that he did this independent of it. Mr. BROWN of Ohio. No; I do not think so. Mr. McCORMACK. Well, in any event, it.was made before the final report was made. Mr. BROWN of Ohio. Yes. Mr. McCORMACK. Furthermore, I think the gentleman will admit-and I want to compliment him for the excel- lent work he did on the Commission, and Mr. Carter. Manasco, for the way they represented with dignity and strength the House of Representatives. I think the gentleman will admit that we passed the General Property Administrative Act, which of course is one of the recommen- dations of the Hoover Commission. In relation to the seven reorganization plans, what the gentleman said in rela- tion to affirmative action by the Con- gress before 60 days, carries great weight. I can assure the gentleman that if the situation arises where that can be accom- plished, I would be very interested in having it done, particularly if that would expedite adjournment of Congress. Mr. BROWN of Ohio. I had that in mind, I might add. I thank the gentle- man very much. Now, I want to bring out one other thought. We now, have a number of bills before the Congress to increase the pay of numerous other Government workers. The pressure for these in- creases has been pretty strong. Such employees have received pay increases in the past while many individuals covered by particular legislation have received no pay increases. But just the minute that this pending bill is enacted into law the pressure and the demand for the in- crease of pay for other Government workers is going to increase tremen- dously. At this moment we are faced with a great steel strike. There are many other demands for increased pay in industry. So I am still wondering, No. 122-8 and still asking the question-and it is a question each Member of this Congress will have to answer for himself- whether or not this is the proper time to .take this particular salary-increase ac- tion. We all want to see these top-rank- ing officials treated fairly. Perhaps they should have some assurance given to them that they are to receive fair con- sideration at the hands of the Congress. But I doubt the wisdom of passing this bill before we are able to point out to the American people the many savings we have made through putting into cff2ct the President's reorganization plans and the recommendations of the Hoover Commission. Mr. CASE of South Dakota. Mr. Speaker, will the gentleman yield? Mr. BROWN of Ohio. I yield. ~Mr. CASE of South Dakota. I anpre- ciate the entleman's ieldin because I want to call t e attention of the Members t`o-t1?e lac": Ta t7+ic biji does sa2xi grange things: The Director. of .the Fad- e`raT -Sureau of Investigation and _ the_ ss si ~o N the Central Intelligence Agency today each receive x4,006 Vita- bill proposes to give the Dire r of? Cen- ,gL tral Intelligence an increase from $14,000 o teas the Director oft e- I+'BI`is raised from $14,00 to only $15,000. At ba same time h uts the Director the Administr vg Office of the United States Courts up t611", 00, an ncrease from his present salary of $I0 3 r t1Ta t uts i pirec r of the A m nis rativ Office of a tie United gw is .on the game level as the erector of Central Tntr ninanc E?F the of the Public Prin er, at 115 00 `1VIr BKN `of Ohio I' assure "the gentleman that it is indeed a very diffi- cult task to attempt to decide just what salaries should be increased and what such increases should be. As I have tried to point out this morning, the basic issue involved in the consideration of this legislation is one of timing. And I do not believe this is the proper time to consider this bill. Mr. SABATH. Mr. Speaker, will the gentleman yield? Mr. BROWN of Ohio. I yield. Mr. SABATH. As to the timing, the bill has been reported and has been in the Rules Committee for nearly 2 months, held there because it was my desire to ascertain from the country . how the country felt about this great question. Issues have been made and the question was raised whether it was proper or not. Let me say that up until now I have not heard anyone objecting to the passage of the bill; on the contrary, I have heard from hundreds of people who feel that it is justifiable and that it should be passed at this time. Mr. BROWN of Ohio, I appreciate the gentleman's remarks. I might add that I, also, have heard from literally thousands upon thousands of American citizens who are vitally interested in put- ting into effect the recommendations of the Hoover Commission and to thus bring about greater economy and effi- ciency In the conduct of the public: busi- ness. I have also heard from many 9321 thousands of citizens who are saying that in the face of present deficit in the Fed- eral Treasury, and the decline in the Nation's business activity, that we must practice economy and efficiency. My one thought has been, and still is, that we should first demonstrate-before enacting legislation like this-to the people of America our great determina- tion here in the Congress, and the desire and determination of the President, to get greater economy and efficiency in the operation of the Government by actually effectuating the Hoover Commission's recommendations through the prompt enactment of necessary enabling legisla- tion. Mr. MILLER of California. Mr. Speaker, will the gentleman yield? Mr. BROWN of Ohio. I yield. Mr. MILLER of California. I wish to call the gentleman's attention to the fact that the first legislative considera- tion of this question was by the com- mittee of the Senate in the Eightieth Congress, a committee headed by Sena- tor Flanders. Mr. BROWN of Ohio. I understand that; I am fully informed on the history of the legislation. I thank the gentle- man very much for his remarks, but I must hasten along, as I have so many requests, for time. Mr. REES. Mr. Speaker, will the gen- tleman yield? Mr. BROWN of Ohio. I yield. Mr. REES. These thousands of let- ters received by the distinguished gen- tleman from Ohio were.not with respect to this measure but with respect to put- ting into effect the Hoover recommenda- tions, were they not? Mr. BROWN of Ohio. Absolutely, yes: my correspondents were all interested in getting more economy and efficiency in the executive branch of the Government. Mr. O'HARA of Minnesota. Mr. Speaker, will the gentleman yield? Mr. BROWN of Ohio. I yield. Mr. O'HARA of Minnesota. Will the gentleman tell us what the over-all cost of this bill will be? Mr. BROWN of Ohio. That informa- tion is given on page 3 of the report. I think it will cost about $1,237,177. Mr. O'HARA of Minnesota. I thank the gentleman. Mr. BROWN of Ohio. It is not the cost of this bill which gives me the greatest concern. It is simply the prin- ciple involved, and the fear that many of the good people of our country may misunderstand our action. They are in- terested in less public spending rather than more. Let us first demonstrate to them our interest in making our Govern- ment more efficient and less costly. Then they will gladly approve any action we may take to fairly pay and properly com- pensate those who can run our govern- mental agencies in an efficient and eco- nomical manner. Mr. SABATH. Mr. Speaker, I yield 5 minutes to the gentleman from Georgia [Mr. Cox]. Mr. COX. Mr.- Speaker, at the outset of my remarks I beg to be permitted to congratulate our distinguished friend. from Ohio [Mr. BROWN] for the state- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9322 CONGRESSIONAL RECORD-HOUSE JULY 8 ment he has made. The temper of his Mr. FULTON. Mr. Speaker, in dis- bill at the present salaries is not a theo- remarks is splendid and I think I may cussing this bill, we are considering the retical one. It is one that has arisen make the observation on the point he rate of compensation of the men who are many times in the past. We cannot stresses that I get; the impression that responsible for carrying out the policies estimate how many men have turned the President has great respect for the determined upon by this Congress, the down requests to serve because they l report of the Hoover Commission and men whose qualifications and ability could not afford the financial sacrifice. ave continue nt it is reasonable to suppose he which t policies ar~succeed or~fail determining whether greatym sl- are and who ehl ssshase beentheir acountr to recommend legislation atioh woululd put more of the e recommendation considering the salaries of senior officials fortune have had to resign because they contained in that report into effect. of the largest business in the world, the could no longer afford to support them- Obviously the whole program cannot be United States Government. selves and their families. To mention adopted at one and the same time. You I do not need to quote figures to illus- only a few, there was the late Harold have to do it by piecemeal. trate the discrepancies between the pres- Smith, competent and able Director of Mr. Speaker, if, as a Member of this ent salaries of these men and those of offi- the Bureau of the Budget, who found he House, I have not established a reputa- cers of other large businesses. This dis- could not make ends meet on a $10,000 tion for candor and independence of crepancy is so well known that the Con- salary; Gen. John H. Hilldring, former thought, then I fear that what I have gress should have done something about Assistant Secretary of State; and Mr. done has been of toc little consequence it sooner. How many large corporations Robert Freer, former Commissioner of to merit attention. But whatever the have a president, who could be secured the Federal Trade Commission. fact may be, I do feel that I have estab- for $15,000 per annum? More pertinent We now have an opportunity to rectify lished the right to appeal to the con- perhaps is the question: How many this deplorable situation. The total cost servative membership of this body, which qualified men could they find who would for the Government in all departments I now do. be willing to serve for such salaries? will be $1,237,173 annually. This is, in. The bill which the pending resolution And yet those are the salaries now paid deed, a small price to pay. makes in order is net political in char- to men who are responsible for the lives, May I point out to you that everybody acted, and I hope it will not be treated safety, and well-being of 150,000,000 agrees tha attlth ste to aof State should me as such. It comes to us as a request stockholder citizens. from the President for the increase of We do not mean to say that the salaries the Under Secretary of the Department the salaries of members of his official of these officials should be commensurate of State would be underpaid at $20,000 a household and others for whom he is with equivalent positions in private busi- year, considering the work and the re- responsible, and by reason of its very ness.. This is not necessary to enable sponsibilities he has to assume. The nature it is a request that amity and the President to obtain qualified people. Administrator for Economic Cooperation mutual respect compel us to honor. We I like to think that every American is under this bill, to paraphrase Mr. Hoff- need to promote harmony and concilia- anxious to serve his country when called man himself, is the biggest bargain the tjon and to cherish mutual good will as and that we do not have to offer what United States ever got for $20,000, the between the Executive and the Congress. he can earn elsewhere as an inducement. salary to which this key position is to be This is not an ordinary recommenda- However, the compensation must be suf- raised. tion for legislation. Only the question ficient to enable qualified men to accept The Assistant Secretaries of State, 10 of salary for a comparatively few people important positions with the Federal of them, and the Department of State Government at not too great a personal counselor, are only being raised to $15,- is involved. We pass laws which the sacrifice. 000 a year under this bill. From my own President is compelled to execute, and General Marshall, when he was Secre- Personal knowledge as a member of the here it is said that in the performance of tary of State,, said on several occasions Committee on Foreign Affairs, these com- this duty, in order to keep good and that he was unable to attract the caliber petent men have responsibilities that are people, and rered, a others, of top staff :required in the conduct Of gigantic. They have such responsibili- salaries be i ng we determine questions tnds our- foreign relations because of the low sal- ties, that the United States must have we selves byfixi these qo nioroe our- aries which he was able to offer. He the best men, properly trained and de- selves by fixing our own salaries and added that he was also unable to keep pendable, to take the far-reaching re- those of our employees, are not the Pres- a number of able employees in the De- sponsibilities and follow them up, ident's wishes entitled to special consid- partment because he was unwilling to Because of the far-reaching extent of eration? To fail to honor this draft ask them to stay at the expense of their these responsibilities which carry out which he has drawn upon the good will financial security. the administration of American foreign of my , tthis body would, in dine a The Congress has recognized made- policies, the American public will not find thoughtless disregard o of f oorrdinaary ry pro- quacies of top Federal salaries on numer- It out until too late if there are mistakes. priety. ous occasions. Perhaps the most strik- Competent key men of the State Depart- The greatest good. that we canddo our ing example, in the field of foreign rela- ment who are the real executives of country is to do our part in promoting tions, was embodied in the Foreign Serv- American world policy which the Presi- good will and drawing together the three ice Act of 1946. A new scale of ambas- dent, Congress, and the Secretary of departments of Government into a sadorial salaries and allowances was au- State formulate are: the present experi- bond of mutual understanding and good thorized. These salaries ran to $25,000 enced counselor of the Department of will and win the confidence of all the a year for class I posts, such as London, State, George F. Kennan, Just confirmed people in order that we may present a Paris, and so forth. The act also pro- by the Senate to succeed the able previ- solid front to that part of the world that vided that the top class of Foreign Serv- ous counselor, Charles E. Bohlen, who is is hostile to our way of life. ice officers should be paid $13,500 a year. to be sent to the Embassy in Paris, Dean The office of the Presidency is a diffi- Under the provisions of this act, top Rusk, Assistant Secretary of State and cult one to fill. While it is a place of officers are brought in from the field to Deputy Under Secretary handling sub- splendor, fame, and power, it is also a work beside other officers receiving $3,000 stantive matters in the State Depart- place of infinite toil'.. The present occu- less per year. ment; quiet and efficient John Peurifoy, pant of this high station wears his hon- In the act establishing the Economic Assistant Secretary of State and Deputy ors with becoming dignity and exercises Cooperation Administration, the Con- Under Secretary in charge of all ad- his powers with great caution. He takes gress also provided for salaries beyond ministrative matters for the State De- praise with great modesty and bears those which have been traditional in the partment; genial and competent Ernest criticism and caluirmy with extreme pa- Federal service. Gross, Assistant Secretary of State for tience. I think he is entitled to our sup- It is impracticable to deal with the congressional relations; Willard L. port in all instances where we do not salary problem on this piecemeal basis. Thorp, Assistant Secretary of State for divide on principle,. I think this salary Inevitably, 11; results in inequities which the involved field of economic affairs; bill is one that we should all support. tend to aggravate rather than solve the George Allen, Assistant Secretary of Mr. SABATH, Mr. Speaker, I yield 3 difficulty. State in charge of that important field, minutes-to the gentleman from Pennsyl- The problem of obtaining and keeping public affairs and public liaison; John vania [Mr. FULTON I. able men in the positions covered by this Hickerson, Assistant Secretary for the Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE expanding field of United Nations affairs; Edward Miller, Assistant Secretary for American Republic Affairs; George'Ma- gee, Assistant Secretary for Near Eastern and African Affairs; George Perkins, As- sistant Secretary for European Affairs; and last but not least, affable and experi- enced Walton Butterworth, nominated as Assistant Secretary of State for Far East- ern Affairs. These men are a credit to the Department of State, and the coun- try. Our foreign relations are so dependent on such personnel that we may run into a national disaster if the United States Government does not get the proper men in the future, and keep these invaluable and experienced people in our State De- partment. We members of the Foreign Affairs Committee in the House know of the vital need, and can heartily recommend to the Congress the expenditure under this bill of only $70,000 per annum additional for the whole Department of State. Such recognition of key personnel carry- ing the executive and policy load of the State Department is in direct keeping with the recommendations of the Hoover Commission, and is therefore nonparti- san. It is sound business sense and good doctrine for the Republican and Demo- cratic parties alike. I strongly urge your support of this legislation as reported by the Post Office and Civil Service Com- mittee. Mr. BROWN of Ohio. Mr. Speaker, I yield 5 minutes to. the gentleman from Massachusetts' [Mr. WIGGLESWORTH]. (Mr. WIGGLESWORTH asked and was given permission to revise and ex- tend his remarks.) Mr. WIGGLESWORTH. Mr. Speaker, I am in favor of reasonable increases in salaries for those in major positions in the executive branch of the Government. I am not in favor of unreasonable in- creases for those in either major or mi- nor positions. My criticism of the bill as it now stands, without having had. much time to study it, is that in some instances, it goes too far in the increase of salaries, that in one or two other instances it does not go far enough; and that it is poorly. drawn in that it includes in the same salary brackets positions which cannot possibly be fairly considered as com- parable, one position being far more im- portant than another. I believe the measure deserves far more careful consideration and amendment before it is enacted into law. I admit that it is difficult to deter- mine upon a yardstick with which to measure executive salaries. But let us take as one yardstick the ablest United States Senator that anyone can think of, who may have given the best years of life to the service of his country and who today commands a salary of $15,000. This bill proposes in class 1 to pay every Cabinet officer $25,000. I do not object to this particularly in itself, but I point out in passing that it means pay- ing every Cabinet officer $10,000 a year more than we pay any United States Senator. In class 2, which is to receive $20,000, you will find the Chairman of the Coun- cif of Economic Advisers, now drawing $15,000, and every Under Secretary in every executive department in the Gov- ernment now drawing from $10,000 to $12,000. In other words, Mr. Speaker, every Under Secretary, who heretofore has had from $10,000 to $12,000, is now to receive $5,000 more than we pay any United States Senator and, incidentally, it is to be bracketed along with the Ad- ministrator for Economic Affairs, Mr. Hoffman, and with the Administrator for Veterans' Affairs, General Gray, both of whom fill tremendously important and tremendously difficult positions. The President is to pay 12 adminis- trative assistants and secretaries a total of $206,000 as compared with a total un- der present conditions of $130,000-two will receive $20,000, three will receive $18,000, seven will receive $16,000. In the $18,000 bracket you find the Federal Works Administrator now drawing $12,500, the Assistant Comptrol- ler General now drawing $10,330, and the Assistant Director of the Bureau of the Budget now drawing $10,330. All will receive $3,000 more than any United States Senator. Moreover, Mr. Speaker, if I read section 6 of this bill correctly, it will be within the discretion of the Presi- dent to put any head of any board or any commission into that $18,000 bracket. Surely this is a matter for the Congress to determine in any given case. In the $17,500 bracket you will find the Director of the Administrative Office of the United States Courts, now drawing $10,330; the Public Printer, now drawing $10,330; the Librarian. of Congress, now drawing $10,330; the Council of Eco- nomic Advisers, other than the chair- man, now drawing, $15,000. All of these will receive $1,500 more than any United States Senator. In the $16,000 bracket there is a whole string of commissioners, of the Federal Communications Commission, of the Federal Power Commission, of the Fed- eral Trade Commission, of the Securi- ties and Exchange Commission, of the Civil Service Commission, of.. the Tariff Commission, all of whom have been drawing $10,000; as. well as the Architect of the Capitol, now drawing $10,330. All are to receive $1,000 more than any United States Senator. Included in the financial classification with a United. States Senator, to receive $15,000, we find among others: The Ar- chivist of the United States, now draw- ing $10,000, the Indian Claims Commis- sioners, now drawing $10,500; the War Claims Commissioners, now drawing $12,000; the Chief Assistant to the Li- brarian of Congress, now drawing $10,- 330; the Deputy Public Printer, now drawing $10,330; and every Assistant Secretary in every executive department. Why, Mr. Speaker, should Edgar Hoover, with h i s t r e m e n d o u s res onsi- bilities a n d remen ous success e c assi- fled _ai , 00 when a re ctor o ' en- trafTntelligence 1s ttb receive $MT500? k'slbUM every Linder Secretary in the executive departments receive $5,000 more than any United States Senator? Why should every Assistant Secretary in the executive departments be brack- eted with a United States Senator? 9323 Why should officials with compara- tively minor responsibilities be bracketed with others with heavy responsibilities? I repeat, Mr. Speaker, I am in favor of reasonable increases in salaries for those in major positions in the executive branch of the Government. I repeat that this bill in my judgment deserves most careful consideration and amendment before it is enacted into law. The SPEAKER. The time of the gen- tleman from Massachusetts has expired. Mr. BROWN of Ohio. Mr. Speaker, I yield such time as he may require to the gentleman from Nebraska [Mr. CURTIS]. Mr. CURTIS. Mr. Speaker, before salaries of the heads and assistant heads of the executive departments are in- creased, the economies recommended by the Hoover Commission should be carried out. It is unfair to expect the taxpayers to shoulder this pay raise recommended by the Hoover. Commission until the other Commission recommendations to elim-' inate waste and duplication are adopted. It has been reliably estimated that if this Commission's proposals are put into effect, the cost of government would be cut $3,000,000,000 a year. When this reorganization is accomplished, the people can be assured we have executives heading the departments. That will be the time to present the question of their pay increases. I expect to vote Against this bill to in- crease Government costs by raising sal- aries of the heads and assistant heads in executive departments. Finally, if the Hoover recommenda- tions are adopted with the resultant sav- ing of three billions, we can then quickly repeal the wartime excise taxes on such items as ladies' handbags, toilet articles, beauty and barber supplies, furs, jewelry, transportation and communication charges, and all other wartime excise taxes. which are now causing undue hardship. These excise taxes are now forcing businesses to the wall and are destroying jobs. There is, therefore, a twofold necessity for defeating the measure before us. Mr. SABATH. Mr. Speaker, I yield 3 minutes to the gentleman from New York [Mr. MIULTER]. Mr. MULTER. Mr. Speaker, I intend to support this rule, and I intend to vote for the bill both in Committee of the Whole and in the House. I rise at this time to make a very brief explanation as to why I will not offer any amendments to the bill as originally announced by me. As you probably know, the gentleman from New York [Mr. KEOGH] has intro- duced a separate bill to increase the sala- ries of members of the judiciary. That bill is now before the Committee on the Judiciary, and the distinguished chair- man, the gentleman from New York [Mr. CELLER], has assured me that the bill will be considered by his committee shortly. and that, if at all possible, it will be re- ported to the House in time to be enacted at this session. My own bill for the increase of our salaries is before the same committee which has reported this bill and I have been assured by the distinguished chair- man [Mr. MURRAY] that that bill also Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9324 CONGRESSIONAL RECORD-HOUSE JULY 8 will be called up before his committee for M' r. LYLE. Mr. Speaker, I am per- Ohio, [Mr. BROWN]. I do not agree with early consideration and, if it is there suaded that the House has sufficient in- him, however, that it is untimely to bring acted on favorably, it will be reported for formation to pass on this resolution and this bill to the floor. During the time I our action shortly thereafter. that it will be adopted. It would, I have been in the legislative body, I have I want to direct the attention of the think, be unfortunate if before the con- never found it timely, politically speak- Members of the House to the fact that sideration of the bill, attention was not ing, to increase the salary of anyone con- not only has the Hoover Commission and directed to the superior report accom- nected with government, but that is a the President recommended an increase panying this legislation, which was filed responsibility I share with you, the re- of salary both for the judges and Mem- by the gentleman from Tennessee [Mr. sponsibility of making the Government bers of the House, but the Director of MURRAY], chairman of the great Corn- service as useful and effective as possible. the Budget has sent a communication to mittee on Post Office and Civil Service. The positions involved in this measure our distinguished colleague [Mr. MUa- This is a document of permanent value are charged with great responsibilities. RAY] which he has authorized me to re- and I am sure all of you will want to keep The President has strongly urged that fer to at this time. The Budget Director it in your office for reference. It out- they be reevaluated and reclassified, under date of June 24, 1949, said: lines the functions of the 244 positions and compensated accordingly. While the bill deals with the question of affected by this bill. I am pleased to The statement made by my distin- whether this proposal-- have a copy of the report and find it guished friend, the gentleman from Gaor- Meaning the increase of salaries for very useful. Members of the Commit- gia [Mr. Cox], eloquent and persuasive, tee and their splendid staff are entitled should have convinced the entire mem- Members of Congress- to a commendation for this report. bership that we should pass this measure. is one for the Congress to resolve, it is sig- I join with every member of this body Mr. Speaker, I urge the adoption of the nificant that the President on several occa- in a sincere desire to effect economy and rule and the immediate consideration sions indicated his feeling that adequate compensation should be provided fer our Fed- reorganization, in the executive branch and passage of H. R. 3191. eral legislators. of the Government. The Hoover Com- (Mr. LYLE asked and was given per- Mr. Speaker, this bill is a step in the mission has made recommendations mission to revise and extend his re- similar to those proposed by this legis- marks.) right direction. lation. In my judgment it cannot be Mr. BROWN of Ohio. Mr. Sper.ker, I The bill to increase the salaries of rightfully said that this is a salary-in- yield the balance of the time on this side members of the judiciary is another step crease bill. It is a measure that re- to the gentleman from Kansas [Mr. in that direction. I submit that my bill evaluates the work and responsibilities REEs]. to increase our own salaries is also a step of the positions covered. It does result Mr. REES. Mr. Speaker, this bill has in the right direction, if you want men in salary increases. not had the careful consideration to and women of the high type and caliber Significantly, it is the 'first time this which it is really entitled. My attention that we ought to have in high position in has been accomplished in a quarter of has been called to the fact that there is our Government, you should pay them, a century. 11 could not support this only $1,250;000 involved. They say it is and pay them well. measure if it were a question of raising conservatively small. There are only 244 I will withhold my amendments With the salaries of personalities now con- out of 2,000,000 employees involved. reference to salary increases to judges nected with the Government, for the However, in this bill, if you had the time and Members of Congress in reliance on philosophy of some of them is foreign to to study it, you would find that it covers the assurances given to me that those mine. It is a healthier bill than that, only a few of hundreds more who are just bills will be submitted to us for separate one attempting to place the position in- as much entitled to an increase as those consideration. volved its its proper stature. in this bill. I know of a good many An almost u eto ous press is adequately support- Your Committee on Post Office and faithf.Iil career people who are much com- Ing a in this effort mber well Civil Service held exhaustive hearings. more entitled to this consideration. As as those the Members of Judges who are It is a conservative committee and their a matter of fact, the committee put in now thore executives and Judges who are recommendations are entitled to the about 40 or 50 positions that were not nbeing WN of Ohio. cst serious consideration. At ail times in the original bill. Mr. BROWN of OhntMr. l Speaker, I I enjoy working with this committee I think the bill is untimely. To bring New 1 minute to the gentleman from because its members, both Democratic a bill to the floor of this House and give New York [1VIr. G. Mr.7. and Republican, sincerely give their best us 30 minutes on each side to discuss an Mr KEATdIdG Mr. Speaker, if, i- to the. improvement of our Government important measure is wrong. That is all the cou teter reports, t Vaughan, service. we are allowed to discuss this bill, except s court jester, , General Vaughan, rule. dent's knows 300 people in Washington who are I am very fond of my Government. It under I hope the to 5-speak minute ruln later and will selling their influence with highly placed has been very good to me. I dislike the outline but I want to call will Government officials for 5 percent or any unfortunate attitude today of so many outline to an amendment that I call t- other consideration, he should be re- commentators and newspaper and mag- ttion the gamtime, that al pooffer-at l reduce the amounts th at these various categories. ce a of the committees now engaged in look- down the confidence of the people in the ing into these reprehensible practices. their Government and ridicule those of A grpeople a deli has been said with respect It is equally important, if his charges us who serve in government, whether it be of corruption are not well-founded, that in the legislative, judicial or executive to to pressure e Wou gis if they foul Mem- has cast upon every procurement agency form of government in the world-so they hau tell lhad pressure not only Some of the assertions of this intimate in it can do :it very little lasting harm., It President of agencies but from involved. heads and assistants of the President can safely and preferably is bigger than all of us, and this, to me The SPEAKER. The time of the be ignored, but here is one to which this is an expression of confidence, not only in Congress cannot shut its eyes. the form of government, but in the sin- gentleman from Kansas has expired. If favoritism concerning the reward of cere and able people who serve in it. one Mr. SABATH. minute toSpeaker, the genIlc yield contracts and the sale of influence have Comparatively, this is not an expensive from Kansas. reached the gigantic proportions which bill. For example, and I do not mean this General Vaughan indicates, and he is as an odious comparison, if you did away Mr. REES. I say to you that this bill certainly in a position to know what he is with the potato program for 2 days, it should have had not only more careful talking about, the public interest re- would pay for this bill for an entire year, study in the committee but also on the quires a full and open disclosure by him The cost is insignificant. It is significant, part of the membership of this House, of name, chapter, and verse to substan- however, to recognize the importance of because you are establishing a policy of tiate his charges. the work and responsibilities of the 244 which this million and a half dollars is Mr. SABATH. Mr. Speaker, I yield 2 postions covered by this bill. I am often only the beginning. It has been sug- minutes to the gentleman from Texas in agreement with my colleague in the Bested that it is very little; to the tax- [Mr. LYLE]. Committee on Rules, the gentleman from payers it is considerable. This is only Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE part of millions more costs proposed by Members of this House before the com- mittee of which I am a member. Should our committee report out the bills that have been proposed by Members of the House we would increase the cost of Gov- ernment for employment more than $2,000,000,000. Mark you, if this bill is passed-if that is what you want-if this bill is passed you have many more bills just as worthy as this one. At the proper time I shall offer a substitute bill and ask you to reduce the payments recom- mended in this bill. The SPEAKER. The time of the gen- tleman from Kansas has expired. Mr. SABATH. Mr. Speaker, I yield to the gentleman from New York [Mr. CELLER] such time as he may desire. Mr. CELLER: Mr. Speaker, I am happy to have this bill considered and pleased to vote essential increases to various members of our executive branch. As chairman of the House Ju- diciary Committee, I have almost daily contact with my esteemed friend the dis- tinguished Attorney General. Our com- mittee and the Department over which the Attorney General presides work in closest harmony. I am gratified that that is so. Permit me to express some pertinent observations concerning the Honorable Tom Clark and his able assist- ants. The Attorney General is the chief law officer of the Government and is the legal adviser to the President and the heads of the executive agencies. Also, he is the head of the Department of Jus- tice, an organization of 27,000 persons serving in all parts of the United States, its Territories and possessions; and which operates at an annual expenditure of ap- proximately $130,000,000. He has under him the Solicitor General of the United States, the Assistant to the Attorney General, the Assistant Solicitor General, seven Assistant Attorneys General and the heads of three major bureaus, namely; the Immigration and NaturAliza- tion Service, the Federal Bureau of In- vestigation, and the Bureau of Prisons. The office of Attorney General was created in 1789, the annual compensation being fixed at $1,500. There were steady increases in compensation through the years until 1870, when the Department of Justice was created and the Attorney General's compensation was fixed at $10,000. At that time the Department consisted of a handful of persons with an annual budget of around $1,000,000. In 1925 the Attorney General's compen- sation was fixed at $15,000, the same rate as at present. The Department at that time comprised 3,400 persons, with an annual expenditure of approximately $15,000,000. Although the responsibili- ties and duties of the Attorney General and his subordinates have increased tre- mendously since that time, the compen- sation of the office has remained the same. While the position has attraction because of its prestige and importance, the fact remains that men of great abil- ity and qualifications but with limited financial means are unable to accept it. Others cannot remain in the position for any length of time without great finan- cial sacrifice. In England, the salary of the Attorney General is fixed at 10,000 pounds-roughly $44,000 at today's rate of exchange; furthermore, that official has substantially fewer responsibilities than those which rest on the Attorney General of the United States. It is no secret that the top men in the legal profession in this country are earn- ing far in excess of what the Attorney General is paid, and very frequently get one fee in a single case far in excess of the Attorney General's annual salary. If nothing more than to command respect in the profession in which the Attorney General is regarded as one of the out- standing members, the compensation of the office should be more nearly com- mensurate to its exacting duties and re- sponsibilities. The Department of Jus- tice is vital to the business and welfare of the Nation, and the security and pro- tection of our economy rests in large measure upon the proper conduct of its work. No business enterprise which has had the growth and expansion in size and responsibilities comparable to the Department of Justice would leave the compensation of its executive head at the same level as it was in its early and formative period. The top officials of the Department included in the pending compensation bill- are the Solicitor General, the Assist- ant to the Attorney General, the Assist- ant Solicitor General, seven Assistant Attorneys General; the Director of the Federal Bureau of Investigation, the Director of the Federal Prison System, and the Commissioner of the Immigra- tion and Naturalization Service.' With the exception of the Directors of the Fed- eral Bureau of Investigation and the Federal Prison System these are all statu- tory positions requiring Presidential ap- pointment and confirmation by the Senate. To raise the salaries of these positions, including that of the Attorney General, would amount to an additional cost of less than $90,000 a year'as presently con- templated, which is far less than the fee frequently paid opposing counsel in a single important case. The Department is a highly organized professional and technical office handling litigation in- volving billions of the Government's money and property. The heads of the divisions and bureaus have exceedingly heavy responsibilities, which have in- creased enormously in the last few years. The work of the Federal courts has greatly expanded, and the complexity of present-day governmental responsibili- ties has given rise to an extended range of legal and administrative problems. The leading practitioners in the legal profession are earning far more than the heads of the legal divisions in this Department. Naturally they are very reluctant to give up lucrative practices to take positions such as these, If they do make the sacrifice, they are then under continual temptation to yield to the demands of society and their fami- lies in order to earn enough to live at a standard commensurate to their posi- tions and 'responsibilities. This results in a great turn-over in these positions, with the resultant loss in continuity of direction and policy in the operation of the various units. Much ground is lost each time in adjusting to new direction and control, to the detriment of the Department and the public. It is urgently necessary that the sal- aries of the top officials of the entire Government be fixed'at a level which will attract men of great capacity, capabil- ity, and sound judg ent. In the case of the Department of Justice it is fur- ther necessary that such men have the caliber to be recognized and respected by the legal profession. The increase in compensation would only partially offset the pressures and burdens which they must face in carrying out the duties and responsibilities of their positions. Under the present salary scale and conditions now prevailing economically the Presi- dent and his Cabinet officers are faced with a serious problem in attracting high-caliber, well-qualified men. The problem facing the Attorney General in this respect is one of particular diffi- culty, for the reasons which have been set forth above. (Mr. CELLER asked and was given permission to revise and extend his remarks.) Mr. SABATH. Mr. Speaker, I yield the balance of my time to the gentleman from Massachusetts [Mr. MCCORMACK]. The SPEAKER. The gentleman from Massachusetts is recognized for 9 minutes. (Mr. McCORMACK asked and was given permission to revise and extend his remarks.) Mr. McCORMACK. Mr. Speaker, I think the remarks made by my very able and distinguished friend the gen- tleman from Georgia [Mr. Cox] were not only dignified but also very effective. He set forth the reasons why this bill should pass. He referred to the spirit of amity between the various branches of Government, and certainly that is a compelling. thought. Amity exists not only between the two bodies of the Con- gress but also between the branches of Government on matters directly con- nected either with the legislative branch in the case of our particular branch of governmental organization, the House and the Senate, and matters directly connected with the executive branch of Government. The President, on his side, has clearly evidenced a feeling of amity for the House of Representatives recently when he signed H. R. 4583, giving us the additional clerk: At that time he said: I have signed this act willingly- Notice the word "willingly," a com- plete expression of understanding and amity- I have signed this act willingly, for I be- lieve that it is in the interest of the Gov- ernment and of the people to provide for the efficient conduct of the public business. The President recognized that when we passed that act that we did so in the interest of efficiency in Government. The President concludes his message with this statement: For the compelling reasons set forth, I be- lieve that the legislation now pending to increase the salaries of officers in the execu- tive branch is a fundamental step toward the more effective operation of the Govern- ment. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 CON GB SESSION A_L RECORD--HOUSE JULY 8 I get a good deal of amusement from the President's message because he "will- ingly" signed the bill which related to the House of Representatives, but called attention to his problem in connection with the bill which :;s now before the House. I hope that this will not develop into a partisan question simply because President Truman is a Democrat; cer- tainly if the incumbent of the White House were a member of the Republican Party I would support his request; for if the President under such circum- stances-and, of course, it will not hap- pen for many, many years-were to be a Republican, I would recognize the amity between the two branches, and I would recognize his justification for such a request. Some Members have referred to the fact that the bill has not been considered carefully. If ever a bill was considered carefully this bill has been. It was in- troduced on January 20, 1949, and the matter has been the subject of considera- tion by a Senate committee in the last Congress. The bill now before us represents a compromise. The gentleman from Ten- nessee [Mr. MURRAY], chairman of the committee, proposed a compromise and the committee adopted his compromise which reduced the amount contained in the original bill. The gentleman front Ohio LMr. BROWNI admits that the legislation is justified and does not argue against the bill. He disagrees with the timing. Of course, that is only a technical objection, which means that he supports the bill, he is in favor of the bill, because otherwise he would be placed in. the very embarrassing position of opposing the very recom- mendations of a commission of which he was a member. Repeatedly throughout the Hoover Commission report' are con- tained references to the fact that the particular officials enumerated in this bill have not received the consideration they are entitled to. For example, in one report it is stated: In order to attract the most desirable types of persons to department high commands, the salaries of under secretaries and assistant secretaries should be increased. Again in the same report there is an- other reference to it. In this .,report there are several references to it. Here is another report of that committee, the report to Congress of February 1949, in which it is stated at one place: To all other employees whose rates of pay are fixed on a Nation-wide basis, the Presi- dent should be authorized to direct the Civil Service Commission to review-- And so forth. In relation to the bill now under consideration it calls atten- tion to the fact that pay in the lowest grades has been increased between 43 and 56 percent, while pay in. the highest grades has been increased only 15 per- cent, immediate consideration should be ,given to providing adequate salaries for top civil-service employees, with the ex- ception of professional, scientific, tech- nical, and so forth. Most, if not all, of those covered by this bill are non-c:lvil- service people. The last time a Cabinet officer received an increase was in 1925. The Cabinet officers :have not received an increase in salary since 1925. Most of the officials covered by this bill, other than members of the Cabinet, such as assistant secretaries, have received no increase in salary since 1925. The last time the members of the Fed- eral Trade Commission received an in- crease in salary was in 1914 when the sal- ary was established at $10,000. That is still the salary of members of the Fed- eral Trade Commission. The last time members of the Cabinet received an in- crease was 24 years -ago; in the case of members of the Federal Trade Com- mission it was not 24 years ago but 35 years ago. So it seems to me that equity and jus- tice calls for this change. If there is some particular position that should re- ceive more, that is another proposition entirely. An amendment may be offered to cover the matter. Reference has been made to J. Edgar Hoover. I may say that I offered an amendment and the Subcommittee on Appropriations agreed to it back 3 or 4 years ago when Mr. Hoover got his last increase from $10,- 000 a year to $14,000 a year. I offered the amendment on the floor of the House, and the subcommittee of the Committees on Appropriations on both sides accept- ed the amendment, Mr. CASE of South Dakota. Mr. Speaker, will the gentleman yield? Mr. McCO]E1MACK. I yield to the gentleman from South Dakota. Mr. CASE of South Dakota. The gentleman would not say now that the Director of the FBI should be put on the same salary as the Deputy Public Printer, would he? Mr. McCORMACK. I was coming to that, to say that those who feel that he should receive more than this should of- fer an amendment to the bill at the proper time, and I am pretty satisfied when that is done that the high regard for the public service of J. Edgar Hoover would probably be very quickly recog- nized. Mr. ROGER S of Florida. Mr. Speak- er, will the gentleman yield? Mr. McCORMACK. I yield to the gentleman from Florida. Mr. ROGERS of Florida. I might state to the gentleman that I have pre- pared an amendment so that he will get at least $17,500. Mr. STEFAN. Mr. Speaker, will the gentleman yield? Mr. McCORP?MACK. I yield to the gentleman from Nebraska. Mr. STEFAN. When the majority leader offered his amendment to increase the salary of Mr. Hoover from $10,000 to $14,000,. it was originally planned to increase it to $15,000. Mr. McCORM-ACK. Yes. ]\/fr. STEFAN. But because his chief, Tom Clark, the Attorney General, was getting $15,000, we did not think it was fair to put the two on the same basis. Mr. McCORMACK. The gentleman is absolutely correct. At that time I was going to offer an amendment to increase his salary to $15,000, but the Attorney General only received $15,000, and it was felt that the head of the FBI should not receive the same salary as the Attorney General. So, my special plea is that the bill should pass. If there is dissatisfaction with some particular classification or position here offer an amendment to it, but let us consider it as we have today during general debate on a nonpartisan, nonpolitical basis because the bill is pred- icated upon justice and equity, and bring about greater efficiency in government. The SPEAKER. The time of the gentleman from Massachusetts has ex- pired. All time has expired. Mr. SABATH. Mr. Speaker, I move the previous question on the resolution. The previous question was ordered. The SPEAKER. The question is on the resolution. The resolution was agreed to. Mr. MURRAY of Tennessee. 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 bill (H. R. 1689) to increase rates of compensation of the heads and.. assistant heads of executive departments and independent agencies. The motion was agreed to. Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the con- sideration of the bill H. R. 1689, with Mr. GORE in the chair. The Clerk read the title of the bill. By unanimous consent, the first read- ing of the bill was dispensed with. (Mr. MURRAY of Tennessee asked and was given permission to revise and extend his remarks.) Mr. MURRAY of Tennessee. Mr. Chairman, I yield myself 10 minutes. Mr. Chairman, the bill under consid- eration proposes to establish the proper rates of annual compensation for heads and assistant heads of the executive departments and independent agencies. Extensive hearings were conducted by the committee, and witnesses appearing represented the General Accounting Of- fice, Bureau of the Budget, Civil Service Commission, and the Commission on Organization of the Executive Branch of the Government. Executives in pri- vate industry, and representatives of Federal and postal employee organiza- tions support the legislation. In its report to the Congress in Feb- ruary 1949, the Commission on Organi- zation of the Executive Branch of the Government, usually referred to as the Hoover Commission, stated that the Congress should "increase legislative, judicial, and executive salaries at the level of assistant secretary, or its equi- valent, and above." The bill approved by the committee establishes annual compensation consistent with the report of the Commission's task force. The committee has prepared an ex- tensive report regarding this legislation (H. Rept. 535), which not only analyzes the legislation in detail, but Appendix B on page 16 contains the following in- formation regarding each position cov- ered by the bill: Position title, present salary and date established, proposed salary, incumbent, responsibilities and size of organization, including number of employees and estimated annual ex- penditures for fiscal year 1949. I trust Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE the Members will avail themselves of the information contained in this report. On January 1, 1949, the President wrote to the Speaker of the House re- questing "that the Congress take prompt action to increase the compensation of the heads and assistant heads of the executive departments and of other Government officers of comparable rank." In his letter he stated that "in- adequate salaries have long made it diffi- cult to obtain and hold able men for positions of greatest responsibility in the Government service. The national in- terest requires that we get and keep in these positions the most capable men and women that can be- found. To do this, we must pay fair salaries. I ask the Congress to give me the means which will make it possible for me to get and keep the men who are required for the job ahead." On June 23, 1949, in his message to the Congress in connection with his approval of H. R. 4583, relating to telephone and telegraph service and clerk hire for Mem- bers of the House of Representatives, the President stated "I am urging increased compensation for Federal executives not primarily as a matter of equity- although it is well justified on equitable grounds-but primarily as a matter of good business from the standpoint of the Government." The President further pointed out that the Hoover Commission "urged more realistic salaries for Federal executives as a means of achieving greater economy and efficiency in gov- ernmental activities." Finally, he stated that "so long as the Congress fails to take this simple and obvious step to im- prove the Government service, there will be an important gap in our efforts to achieve economy and. efficiency. I again urge the Congress to complete favorable action upon this legislation at an early date." Section 1 establishes the compensation of the head of each executive depart- ment and of the Secretary of Defense at $25,000 per annum. At the present time the compensation of Cabinet members is $15,000 per annum, and in no case has been changed since 1925. 1 believe that upward revisions in the compensation of these important Government officials are long overdue and that the bill provides the correct adjustment in their salaries. Section 2 (a) establishes the compen- sation of each Undersecretary of an executive department, the Assistant to the Attorney General, the First Assistant Postmaster. General, the Solicitor Gen- eral, the Comptroller General, the Direc- tor of the Bureau of the Budget, the Chairman of the Council of Economic Ad- visers, the Chairman of the National Se- curity Resources Board, the Federal Security Administrator, the Administra- tor of Veterans' Affairs, and .' dministra- tor for Economic Cooperation at $20,000 per annum. In the bill as introduced, these salaries were generally set at $22,500, but the committee agreed to reduce such compensation by $2,500 an- Section 2 (b) authorizes the President to fix the compensation of his six admin- istrative assistants, the Executive Secre- tary of the National Security Council and five other secretaries or staff assistants in 9327 the White House as follows: Two at rates duced $8,500 annually-see appendix A, not exceeding $20,000 annually, three not page 14, House Report 535. exceedindg $18,000 annually, and seven Section'5 establishes the annual com- not exceeding $16,000 annually. The pensation of the Housing Expediter; the committee reduced these, rates $2,500, War Assets Administrator; the Director $2,000, and $1,500 respectively, under the of Selective Service; the Archivist of the salaries provided in the bill as introduced. United States; each Assistant Secretary Section 3 (a) establishes the annual of an executive department; the Fiscal compensation of the Assistant Comp- Assistant Secretary of the Treasury; troller General, Assistant Director of the each Assistant Attorney General; the Bureau of the Budget, Chairman of the Assistant Solicitor General of the United Munitions Board, Chairman of the Re States; the counselor of the Department search and Development Board, Chair- of State; the Second, Third, and Fourth man of the Atomic Energy Commission, Assistant Postmasters General; the As- Federal Works Administrator, Housing sociate Federal Mediation and Concilia- and Home Finance Administrator, Dep- tion Director; the D_e_put Director of uty Administrator of Veterans' Affairs, Central Intelli e_nce he Ph lippine Alien and Deputy Administrator for Economic "]`'ro'per y Fministrator; the Chief As- Cooperation at $18,000. The commit- sistant Librarian of Congress;'the Deputy tee reduced such compensation by $2,000 Public Printer; the Governors of Alaska, annually from the salaries in the bill as Hawaii, the Virgin Islands, and the introduced. Panama Canal; and the members of the Section 3 (b) establishes the annual Displaced Persons Commission, Indian compensation of the Director of the Ad- Claims Commission, War Claims Com- ministrative Office of the United States mission, Philippine War Damage Com- Courts at $17,500, a $2,500 annual reduc- mission, Board of Commissioners of the tion from the bill as introduced. District of Columbia, Board of Directors Section 3 (c) establishes the annual of the Export-Import Bank of Washing compensation of the Public Printer, Li- ton, other than the Chairman, Board of brarian of Congress, members-other Directors of the Reconstruction Finance than Chairman-of the Council of Eco- Corporation, other than the Chairman, nomic Advisers, Director of Central in- United States 'Maritime Commission, telligencc,, Federal ediation an on- other than the Chairman, at $15,000. c is on Director, and Assistant Federal In H. R. 1689, as introduced, TK_ ese sa - Security Administrator at $17,500. In mites were set at $17,500, but the com- the bill as introduced, the se" sa- a"r eis were mittee agreed to reduce such compensa- set at $20,000 but the committee agreed tion by $2,500 annually. o rsuch compensation by $2,500 While this legislation was under con- to reduce ed ly, sideration the committee added the fol- Sectlon 4 establishes the annual com- lowing positions and increased their rates of basic annual compensation to $15,000 pensation of the Board of Governors of annually: The Administrator, Produc- the Federal Reserve System, the Director tion and Marketing Administration; of Aeronautical Research of the National Commissioner of Internal Revenue; Advisory Committee for Aeronautics, the Director of the' Bureau of Prisons ; Chairman of the Board of Directors of Director, Federal Bureau of Investiga- the Export-Import Bank of Washington, tion; Commissioner of Public Roads; the Comptroller of Currency, the Chair- Commissioner of Public Buildings; Com- man of the Board of Directors of the Re- missioner of Community Facilities; Com- construction Finance Corporation, the nissioner of Immigration and Natural- Chairman of the United States Maritime ization; Administrator, Rural Electrifica- Commission, the general counsel of the tion Administration; Commissioner for National Labor Relations Board, the Social Security; Commissioner of Rec- Architect of the Capitol, the Assistant lamation; Chief, Soil Conservation Serv- Federal Works Administrator, and the ice; Commissioner of Customs; Governor members of the Civil Aeronautics Board, of the Farm Credit Administration; Federal Communications Commission, Chief Forester of the Forest Service; Board of Directors of the Federal De- Administrator of the Farmers Home posit Insurance Corporation, Federal Administration; the three Special Assist- Power Commission, Federal Trade Com- ants to the Secretary of Defense. mission, Interstate Commerce Commis- Section 5. (b) establishes the annual sion, National Labor Relations Board, compensation of the Assistant Director National Mediation Board, Railroad Re- of the Administrative Office of the United tirement Board, Securities and Exchange States Courts at $15,000, a reduction of Commission, Board of Directors of the $2,500 annually from the bill as intro- Tennessee Valley Authority, Civil Serv- duced. ice Commission, United States Tariff Section 5 (c) establishes the annual Commission, and Atomic Energy Com- compensation of the legislative counsel mission-other than the Chairman-at of the House of Representatives and the $16,000. In the bill as introduced, the Legislative Counsel of the Senate at majority of these salaries were set at $12,000 per annum. $17,500, and the committee agreed to Section 6 provides that the President reduce such compensation by $1,500 an- is authorized in his discretion to in- nually. However, in the case of the mem- crease the compensation of any chair- bers of the Atomic Energy Commission man or other head of a board or com- and members of the Board of Governors mission to. $18,000 per annum, when of the Federal Reserve System, such com- such head has important duties or re- pensation was reduced by $4,000 an- sponsibilities not imposed upon other nually from H. R. 1689 as introuced, and members of such board or commission. the Chairman of the Board of Governors In the judgment of the committee, this of the Federal Reserve System was re- discretionary authority properly belongs Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9328 CONGRESSIONAL RECORD-HOUSE JULY 8 to the President in connection with se- spect to these salaries the committee For example, the salaries of Federal Trade Commission members were fixed at $10,000 curing better administration and pro- made only minor adjustments a d them. in 1914 and have never been raised, although viding adequate compensation for in- Also, such congressional action serve as In terms of real income that amount, even creased duties and responsibilities of a guide to the committee in establishing before taxes, is less than half of what it was public officials. the compensation of the remainder of 35 years ago. The absurdity of the present Section 7 of the bill as approved by the positions covered by the bill, situation is illustrated by the fact that many the committee contained annual pay in- I believe that the enactment of this Federal executives now have assistants who creases of $330 annually for officers and legislation is necessary and consistent receive higher salaries than they do. employees of the Foreign Service, and with a more realistic approach to good The Congress has already recognized the pups o for greater and employees, other classified Federal employees in the mu- administration in the Federal Govern- need officers e Members of Congress tin- nicipal government of the District of ment. groups tF el Columbia retroactive to July 1948. This SIGNING OF H. A. 4583 selves. Prior to 1925 Senators and Repre- sectiori was approved. by separate legis- (Message from the President of the United sentatives received an annual salary of $7,500 lation, H. R. 5100, which passed the States transmitting relative to signing each. At the same time Cabinet officers House on June 210 and the Senate on H. R. 4583, arid with the recommendation received $12,000 and members of important June 30, and is now Public Law 160. for passage of legislation raising the sal- boards and commissions received $10,000. Consequently, at the appropriate time, aries of executive officers of the Govern- In 1925 the salaries of Senators and Repre- I shall offer an amendment on behalf of ment) sentatives were increased to $10,000 and the committee to strike this section in To the Congress of the United States: those of Cabinet officers were increased to its entirety. I have today approved H. R. 4583, relating $15,000. No corresponding general increase to telephone and telegraph service and clerk was made in the salaries of other executive The salary increases for these 244 hire for Members of the House of R.-pre- officers. In 1946 the Congress further in- Government officials will cost $1,237,173 sentatives. This act provides an additional creased the salaries of Senators and Repre- annually. This is a reduction of $156,- allowance of $1,000 a year for each Member sentatives to $12,500, and at the same time 000 annually under the cost of the bill as of the House of Representatives for clerk provided for each of them a tax-free expense introduced. hire and authorizes an allowance of $500 a allowance of $2,500. Because this allow- It is obvious that this small investment year for each Member for sending telephone ance is tax-free, the compensation of Mem- and telegraph communications. bers of Congress is now equivalent to ap- iri dollars of securing Gov and retaining I have signed this act willingly, for I be- proximately $16,000 a year. Thus, the com- highly competent Government officials lieve that it is in the interest of the Govern- pensation of Senators and Representatives will be beneficial to the American people. ment and of the people to provide for the has been more than doubled in the last 25 I believe,that enactment of this legis- efficient conduct of the public business. I years, while there has been no general in- lation will provide appropriate incentive have no doubt that the benefits derived from crease at all in the salaries of the executive in terms of annual compensation to at- this legislation will fully justify its Cost, officials here in question. tract well-qualified and able top-level which is relatively small in the light of the Over this same 25-year period the salaries officials in the Federal Government. magnitude of the problems confronting the of Federal judges have also been substan- Occupying the positions covered by the Government. tially increased. The salaries of district and bill, they should conduct the affairs of I feel constrained to point out to the Con- circuit judges have been doubled, and those gress again, however, an opportunity which of Supreme Court Justices have been in- our country more efficiently and more it has for a greater improvement of the pub- creased by more than two-thirds. economically. They will bring with lie service than will be accomplished by this The Congress has also raised the compen- them into the Federal service extensive legislation, and at approximately the same sation of the President, the Vice President, experience in handling the affairs of cost. I have heretofore recommended that and the Speaker of the House of Representa- companies in private industry. They the Congress enact legislation to raise the tives. The annual salary of the President will initiate new procedures and devices salary scales for the heads and assistant was increased from $75,000 to $100,000 earlier for decreasing the cost of Government heads of executive departments and other this year, and at the same- time he was pro- which will result in savings of many officials of the executive branch having com- vided with a $50,000 tax-free expense allow- parable responsibilities. Bills for this pur- ance. While this increase was made without millions of dollars which will more than pose have been reported from committees in any recommendation or suggestion on my offset the moderate salary increases pro- both Houses cf Congress and have been on part, I am grateful to the Congress for the posed in the bill.. their respective calendars for weeks. Though spirit which moved it to enact the increase Since July 1, 1945, the annual Compen- the salaries provided' in these bills are not, speedily in order that I might receive its sation of Federal employees has been in my judgment, fully commensurate with benefits. Nevertheless, the proposed in- substantially increased. The heads and the great responsibilities of the positions in- creases for other officers in the executive ments and valved, they would substantially better the branch, besides resulting in far greater pub- assistant the present demoralizing situation. The cost of lie benefit than the increase in the Presi- agencies heads covered of by this depart bill have not this legislation would be approximately dent's salary, would actually do more to im- received such statutory increases. Ex- $1,300,000 annually, compared with $1,314,000 prove the President's personal situation than cept in a few cases, upward salary ad- for clerk hire alone under H. R. 4583, which the increase in his own salary. For one of justments have not been made during I have just signed. the greatest burdens of the Presidency is in the past 25 years in the salaries of the Important as it is for Members of the Con- finding and keeping good men for big jobs, 244 top-1 vel officials included in the bill. gress to have adequate clerical assistance, it and under present conditions that is a most Moreover, in those instances where the is at least of equal importance to have men difficult task. annual compensation of heads and of ability in the key executive positions in The Congress has already recognized the assistant heads of independent estab- the Government. The best of laws can be need for increased compensation for Federal ruined by poor administration. The success employees below the top executive level. lishments and agencies has been fixed or failure of all the things the United States Since 1945 the rates of compensation for since 1940, the salary adjustments have Government undertakes to do depends in these employees have been increased three resulted in a disproportionate relation- large measure upon the wisdom and ability times, largely to meet increased living costs. ship between those positions and similar of these executives. It is upon them that we These increases have been proportionately positions established prior to the war must rest most of our hopes for economy and greater in the lower grades than in the years. efficiency in the Government. Even a small higher, and in the lower grades the total in- In establishing the annual eornpensa- improvement in the economy and efficiency creases range up to 96 percent. The salary tion for heads and assistant heads of of the vast operations under the direction of schedules for Federal employees still need these men is obviously of much greater con- revision, and I have recommended such re- agencies created since World War II, a sequence than the cost of the proposed salary vision to the Congress. more realistic approach has been made increases. The soundness of this principle i thoroughly approve of adequate salaries by Congress, for example, the Adminis- has been demonstrated in American busi- for all our Federal employees. Increased trator for Economic Cooperation receives ness concerns, where it is well recognized prosperity for our Nation depends upon the a salary of $20,000 annually, the Deputy that the success or failure of an enterprise constant betterment of the living standards Administrator for Economic Cooperation depends largely upon its executive officers, of the great body of our citizens. In the pro- he Chairman of thie and their salaries are fixed accordingly. motion of the general welfare, Federal em- Atom0 ic Energy annually, Commission $17,500 an- The relative salary position of Federal ployees should not be neglected. However, I Atom executives has become increasingly worse am urging increased compensation for Fed- nually, the Housing and Home Finance during recent years. There has been no eral executives not primarily as a matter of Administrator $16,500 annually, and the increase in the salaries of Cabinet officers equity-although it is well justified on equi- members of the Council of Economic since 1925. Members of important corn- table grounds--but primarily as a matter of Advisers $15,000 annually. In view of missions whose salaries were set at $10,000 good business from the standpoint of the the recent action by Congress with re- many years ago, still get the same amount. Government. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 7-1 1949 CONG I . IO~j F `i'CORD-HOUSE It is customary in private industry for an executive to be paid many times as much as he would be paid for comparable work in Government service. Salaries of $50,000 to $100,000 a year in private industry are not uncommon. In 1948, General Motors Corp. paid to 53 of its officers and directors an average salary of.$51,760 each. The 15 top executives of the du Pont Co, were paid an average salary of $213,176 each-an aggre- gate amount for these 15 men greater than the total salaries now paid to all the 250 or so Federal officers whose salaries would be increased by the legislation before the Con- gress. When it is considered that the responsi- bilities of many top Government executives are far greater than those of any private executive in the Nation it is evident why the Government has'great difficulty in obtain- ing and keeping the best men. Even when they are prevailed upon as a matter of public duty to serve in the Government, too often they find that they can afford to serve for a limited time only. Thus men are lost to the Government just when they have. had the experience which brings them to the peak of their effectiveness. Such a process is obviously poor business and any apparent savingein funds for salaries is obviously a disservice to the taxpayers. These truths were clearly recognized by the Commission on Organization of the Executive Branch. That Commission urged more realistic salaries for Federal executives as a means of achieving greater economy and efficiency in governmental activities. The legislation for increased executive salaries now pending in the Congress is fully sup- ported by the recommendations of that Com- mission. So long as the Congress fails to take this simple and obvious step to improve the Government service, there will be an important gap in our efforts to achieve econ- omy and efficiency. For the compelling reasons set forth above, I believe that the legislation now pending to increase the salaries of officers in the executive branch is a fundamental step toward the more, effective operation of the Government. Therefore, I again urge the Congress to complete favorable action upon this legislation at an early date. HARRY S. TRUMAN. THE WHITE HOUSE, June 23, 1949. INCREASING COMPENSATION FOR HEADS OF EXECUTIVE DEPARTMENTS (Communication from the President of the United States transmitting his recommen- dation for the increase of compensation of the heads and assistant heads of the execu- tive departments and of other Government officers of comparable rank) THE WHITE HOUSE, Washington, January 6, 1949. The honorable the SPEAKER OF THE HOUSE OF REPRESENTATIVES, Washington, D. C. DEAR MR, SPEAKER: I request that the Con- gress take prompt action to increase the compensation of the heads and assistant heads of the executive departments and of other Government officers of comparable rank, Inadequate salaries have long made it dif- ficult to obtain and hold able men for posi- tions of greatest responsibility in the Gov- ernment service. For most of those posi- tions, there have been no pay increases in many years. In the meantime, other salaries, in both Government and industry, have risen sharply, and opportunities for larger compen- sation in private industry have greatly expanded. In recent years, the difficulties of obtaining and holding the best qualified citizens for official positions has definitely impaired the Government service. This condition has now progressed to the point where it constitutes a serious threat to the efficiency of the Gov- ernment. The men who hold the offices in question must translate into action the policies de- termined upon by the Congress. Their ability determines in large measure whether these policies are to succeed or fail. The national interest requires that we get and keep in these positions the most capable men and women that can be found. To do this, we must pay fair salaries. I recognize that the Government cannot p0y salaries equal to those in private indus- try for positions of comparable importance. But it can reduce the discrepancy enough to permit able and public-spirited citizens to serve the Government without too great a disadvantage. Fortunately, the Congress is in a position to take intelligent and considered action on this problem without delay. Within the last month extensive evidence on the subject has been presented to a Senate subcommittee and is now available to the Congress, This evi- dence includes supporting testimony by for- mer President Hoover, as Chairman of the Commission on Organization of the Executive Branch of the Government. The subcom- mittee examined the problem carefully, fair- ly, and without partisanship. The bill which they developed, and which has now been introduced in the Eighty-first Congress, is the result of more than a year's study, That bill establishes a salary range of from $17,500 to $25,000 for the officials in question. These provisions are in accordance with rec- ommendations made to the subcommittee by the administration. I urge their passage in their present form. Questions concerning the compensation of Federal officers and employ- ees not included in this bill should not be permitted to impede or delay its passage, but should be considered separately at an early date. On January 20 a new Presidential term will begin. During that term the executive branch of the Government will be called upon to bear responsibilities of great magni- tude. Prompt action on this bill is of great importance to me in strengthening the man- agement of the executive branch to meet those responsibilities. Its small cost will be repaid many times. I ask the Congress to give me the means which will make it possi- ble for me to get and keep the men who are required for the job ahead. I hope that this legislation will be enacted into law immediately. Sincerely yours, HARRY S. TRUMAN. Mr. REES. Mr. Chairman, I yield my- self 10 minutes. This legislation. providing for large in- creases in the salaries of top-flight people in Government, in my judgment, comes at a rather inopportune time. It is ad- mitted that it is here because it is on the President's agenda and because of pres- sure from the White House. Let me say, too, that almost every Member in this House has been called upon either by telephone or in person to approve this bill. Mr. Chairman, it is' unfortunate and unfair to bring such an important bill to the floor of the House with only 1 hour's time for discussion. This measure should have opportunity for full and complete discussion by the membership of this House. It provides for increases of salaries for 240 Presidential employees, all the way from 50 to 100 percent. It has been said that these are rece__ mendations of the Hoover Committee. I disagree with that statement. The committee report states there should be increases in some of the higher positions, but certainly did not name 240 jobs, most of which will be in- creased from 75 to 100 percent. In my judgment the increases are too drastic, At "the proper time I shall offer an amendment that will trim these amounts to considerable extent. My proposal is that we reduce the amount paid to these Presidential em- ployees. Do not forget we are not con- sidering employees in classified service. These are all Presidential appointees and can be removed at the will of the Presi- dent. You will observe they are named in dif- ferent groups. The first group is the President's Cabinet. The salary in- creases here are lifted from $15,000 to $25,000. I am not presently criticizing that particular category. I realize the members of the Cabinet are entitled to considerable increase in salary and that they have big expense accounts. But, Mr. Chairman, take a look at the next schedule in section 2, these various Under Secretaries who are increasing their salaries 100 percent. Just think of it. They receive $10,000 per year, except probably 2 or 3 who get $12,000.. You hike the salaries of these people up to $20,000. How are you going to justify your approval of that. I am willing to provide some increases, but these are clear out of line. The next schedule in the bill, who are assistants in the various agencies, get from $10,000 to $14,000 now, and yet under the bill you pay them $18,000 a year. It seems to me that $15,000 would be pretty liberal. Then in the next group are listed, among others, the Federal Mediation and Conciliation Director and the Assistant Federal Security Administrator. They get $10,000. It seems to me that $15,000 would be a pretty fair salary. I would like to speak for a moment about schedule 5, a group of assistant secretaries. Many of these names were put in by members of our committee. They draw $10,000 now. The bill gives them a 50-percent increase, or $15,000; $12,500, it seems to me, would be a rea- sonable increase. If you will glance at the last paragraph in the bill, you will find a provision, that gives the President authority under cer- tain circumstances to lift the salaries of a number of persons up to $18,000. The President can do it on his own account without further authority. Let me say, too, that many of the men selected to fill these jobs are appointed not because of their particular qualifica- tions but because of political affiliations and because of certain loyalties outside of particular fitness for these jobs. I regret to say that there are too many men holding positions in Government that are there because of political pull and not because they are qualified. On he other hand we have men, In-- -Government bout whom ou hear verf ,hut who are dev f e_ un er add Amok them _ wow e Included such persons as the Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9330 CONGRESSIONAL RECORD-HOUSE JULY 8 head,_ol' the Federal _Bureau of _ Iy.Q,gti- gation, the head of the Central Intelli- kenceAgency, the Comptroller General, the Director of the Veterans' Adminis- tration, and other persons where respon- sibilities are great and where public appreciation is ,.Co.cnparatively small. Personally, I would like to single out a number of those .lobs and p_ y them sal- aries to which they are entitled. Let us not forget that you cannot com- pare salaries of these persons with the salaries of those employed in Industry and business. As I said, there are many men and women who are devoted to their work and who, because they want to serve in these certain. capacities, are will- ing to continue even though they may be offered higher salaries in other fields. Much has been said about competition of industry. The situation is so much different. Men devoted to these higher positions do not work because of salary alone, and so you cannot compare a $100,000 a year executive in industry with a $15,000 or $20,000 a year executive in Government. Only recently a lean employed in a very high position in your Government and mine gave all he had. In fact, he lost his health and his life because of de- votion to duty. Raising the salary of that person would, as you know, make very little difference. It just does not work that way. Mr. Chairman, there are more than 2,000,000 people employed in Govern- ment.. There are several hundred em- ployed with comparative salaries. With this bill you reach out and pick 240 and increase their salaries, as l: said a mo- ment ago, all the way from $5,000 to $10,- 000 a year. You could easily pick 500 more who are just as important as some of these included in the bill. Mr. Chairman, I do not. believe the President in his message to Congress is quite as forthright and realistic as he might be. I do not want to criticize, but I just do not believe he will have diffi- culty in finding men to fill these posi- tions if he is looking for them on the basis of qualifications for the jobs. I believe you will find that with the exception of perhaps a half dozen appointees, most of them have to be qualified politically be- fore they qualify otherwise. Mr. Chairman, the problem of ef- flciency in Government will not be solved by simply increasing salaries of execu- tives in policy-making positions. We have got to have men in public authority who will give first consideration to ef- ficiency and to the best interests of our Government and its people. We have got to quit making appointments because of political debts or personal friendships. Let me repeat, there are many capable men in Government and many of them deserve salary increases and many of them could make more money in private industry. Many of them who do leave the Government do it because of inef- ficiency and a realization that advance- ment in higher positions does not come alone because they have given their best to their jobs and to the Government they serve. Again I repeat I do not believe the President will have difficulty finding men to fill high important positions. Mr. YATES. Mr. Chairman, will the gentleman yield? Mr. REES. I yield to the distin- guished gentleman from Illinois. Mr. YATES. I heard the gentleman say on other occasions that he is inter- ested in our (: lovernment being operated on as business-like a basis as possible. Does not the gentleman agree with the intent of this bill which will certainly permit the attraction of many more cap- able people to the service of the Govern- ment, even assuming that they possess the moral and spiritual qualities which go with it? Mr. REES. I wish that the views. of the gentleman were carried out, but, un- fortunately, these jobs do not all go to people who have qualified because of efficient and faithful service in our gov- ernment. You can count on the fingers of one hand the number of men holding high responsible positions in this group who secured their positions because of their faithful and efficient service in Gov- ernment. These people, with the ex- ception of a very few, are appointed from the outside. Mr. PHILLIPS of California. Mr. Chairman, will the gentleman yield? Mr. REES. I yield to the gentleman from California. Mr. PHILLIPS of California. I am glad to support the gentleman's amend- ment, but does the gentleman think his amendment will correct the inequalities that exist in the matter of giving the Chairman of the Atomic Energy Com- mission $18,000 and the Under Secretary of Agriculture $20,000? Mr. REES. It will not correct the in- equalities to which the gentleman has called attention. It will be helpful how- ever in that direction. As I said a while ago, this legislation is inequitable in so many respects and yet the leadership of the House has allowed only 1 hour's time in late afternoon, of which we are given only 30 minutes during which to discuss a piece of legislation that not only involves the expenditure of an additional million and a half dollars a year, but provides for the drastic increase in salaries of a se- lected top flight few in the executive de- partment. The CHAIRMAN. The time of the gentleman from Kansas has expired. Mr. MURRAY of Tennessee. Mr. Chairman, I yield 5 minutes to the gen- tleman from California [Mr. MILLER]. Mr. MILLER of California. Mr. Chair- man, the gentleman who preceded me said that this is an important piece of legislation. I agree with him in that re- gard. However, I cannot agree that it has not received full consideration by the Committee on Post Office and Civil Serv- ice of the House. Deliberations on this type legislation were started during the Eightieth Congress by a Senate com- mittee headed by Senator Flanders. I was invited to sit with that committee as a guest. I had the privilege and oppor- tunity of observing its work. I heard former President Hoover, Mr. Steven- son, head of the task force of the Hoover Commission, our former colleague, Mr. Ramspeck, and numerous other witnesses testify as to the necessity for this legis- lation. The adoption of this bill means economy and efficiency in Government and I would like you to follow this rea- soning for the moment: At the present time we have a $10,000 ceiling on the salaries that may be paid to career employees in the Government service. That is the block that is on the salaries and the block that is on efficiency in Government. As you have heard it stated, we have raised the lower level of employees by 56 percent, yet we have only been able to raise the upper level by less than 15 percent. A man who had a $9,000 a year job stopped at $10,000; a man who had an $8,000 a year job stopped when the increases brought his salary up to $10,000. The Hoover Commission recognized this weakness in our pay system and sets it forth in several places in its report as follows: That in order to release the pressure. and to establish a well-grounded merit system, it is necessary to raise the salaries of top- flight Government executives in order that the pressure may be released and we can raise the salaries of those career people who make the Government their life work. On page 22 of the Personnel Manage- ment Report recommendation 11 reads: Congress should raise the present salary ceiling of $10,330 for career employees. At the same time, it should increase legislative, judicial, and executive salaries at the level of assistant secretary, or its equivalent, and above. The Commission has considered confining these recommendations to the executive branch alone. Although aware that it is exceeding its charter, the Commission has concluded that to recommend any increase in salary without taking the total picture into consideration, would confuse rather than clarify an action that is essential in strength- ening our whole Government structure. On page 37 of the Task Force Report on Federal Personnel it says: The present compensation of Government officials should be increased, and a perma- nent plan should be established for keeping all salary levels, fixed by law, properly adjusted. There must be an adjustment in rela- tion to the salaries of the appointed executives and the salaries of those people who are in the career service. The second recommendation is: Raise the ceiling of the top civil-service grades (CAF-15 and P-8) to $15,000. I submit that it would not be con- sistent to raise the salaries of civil- service employees, career employees, within the executive departments to $15,000 a year, and leave that of the assistant secretaries, the work horses of the departments, at a salary lower than that paid to the career employees. Oh, we have heard a lot about the in- fluence of politics and that sort of thing. That may be true for the glamour jobs, such as the Secretary of State or even the Under Secretaries. But, how about the Assistant Secretaries, the people that do the real executive work in the depart- ments, who carry out the programs laid down for them? How many of you can name a dozen of these Under Secretaries? The CHAIRMAN. The time of the gentleman from California has expired. (Mr. MILLER of California asked and was given permission to revise and ex- tend his remarks.) Approved For Release 2000108/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE Mr. REES. Mr. Chairman, I yield 5 minutes to the gentlewoman from New York [Mrs. ST. GEORGE], Mrs. ST. GEORGE. Mr. Chairman, the Committee on Post Office and Civil Service labored long on the present leg- islation. When we started considering salary increases, the finances of this Government and of this country were very different from what they are today. For that reason I, at the present time, have very grave misgivings as to the wis- dom of such legislation. It has been said that this bill carries out some of the rec- ommendations of the Hoover Commis- sion, That is true. It has also been said that Members of Congress are getting let- ters by the thousands from people back home advocating the putting into prac- tice of the recommendations of the Hoover Commission. But, I would like to call your attention to one thing, the people who are writing from back-home have not read all of the recommendations of the Hoover Commission. I doubt if any Member now on the floor of this House has read them all, and the reports of the task force. But, the people back home have -seen the headlines. And, what do these headlines tell them? They tell them that the Hoover Commission has stated, and knows, that $3,000,000,- 000 can be saved in the Federal Govern- ment, and that is what the people back home are writing about.. They are writ- ing for economy. They are worried, and they have. reason to be worried about the financial structure of this country and of the western world. I do not believe that those same people will be very happy to see us in this House single out Just one thing in the Hoover Commission, namely, the increase of salaries for some of the top brackets in the Executive branch of the Government. It has been said that timing is not very important. On the contrary, Mr. Chair- man, I believe that timing is all impor- tant in Government and in life, and this is not the time to increase the costs of government. Another thing, why do these increases have to come at the top of the pyramid? I admit that many of these top executives are deserving of far higher salaries than they are receiving, I have no doubt as to that, but I am equally certain that they may be in a far better position to get along and to make ends meet, as has been said here, on their present salaries than many.employees in the lower brackets. We are also constantly told that it is difficult to get the caliber of people that are needed in Government and especially ,in executive positions. That I believe is a fallacy. The men and the women who want to serve their Government do not serve for cash. They know perfectly well that Government can never com- pete with private industry. But Gov- ernment service gives us other things. Government service gives us an inner satisfaction. It gives us the feeling that we are doing our patriotic duty. Not only that, but Government service gives prestige and many other things that no private industry can give an individual. Many of us have gotten to the point where we know there,'are some things that cannot be purchased with dollars. Surely these men, in executive positions feel that way. We are certainly not worried about Government employees leaving the Gov- ernment when we hear that today the Federal Government is taking in em- ployees at the rate of 350 per day. Therefore, that service cannot be so very distasteful. While I was sitting here I happened to see a headline in a newspaper held by one of my distinguished colleagues on this rather spa ly filled floor. That headline said thahere were 15,000 more Federal jobs that had just been restored by the Senate of the United States. Mr. MURRAY of Tennessee, Mr. Chairman, I yield 5 minutes to the gen- tleman from Louisiana [Mr. MORRISON]. Mr. MORRISON. Mr. Chairman, this bill has had a great deal of considera- tion before the House Committee on Post Office. and Civil Service. The committee has had at least six meetings on this bill. There has not been a single bill before our committee that has had more time or more deliberation than this bill, with the one exception of the very involved bill for the postal-rate increase. I can as- sure the members of this committee that each member of the committee had am- ple time to give his or her reasons both for and against each increase. The original bill that was presented to the committee was compromised, and that bill which was submitted by the chairman was finally adopted, with a few exceptions. I can. say that this bill not only has the endorsement and. support of' many of those who appeared before the committee, but it also has the approval of, and is recommended for passage by the American Bar Association. The board of directors of the chamber of commerce have endorsed this legislation. I have a number of telegrams which were sent to various Members of the Senate and House recommending the passage of this particular legislation. I will -read a few of these telegrams to different Mem- bers from some of the leaders in business as well as leaders in other outstanding organizations: FEBRUARY 6,1949, The Honorable HERBERT O'CorroR, Senate Office Building, Washington,, D. C.: Hope it will be possible for you to support bill to increase salaries of top Government executives. Believe in long run it will be economy measure. Have seen many instances where first-rate men from education as well as business felt they could not afford accept important Government posts. Believe pro- posed measure would help attract better personnel. Regards, DONALD K. DAVID, Dean, Harvard Business School. FEBRUARY 9, 1949, Senator HERBERT O'CONOR, Senate Office Building, Washington, D. C.: Having had the experience over the past few years of seeing Government lose the services of very able men because they could no longer afford to work for the meager salaries Government could pay, I respectfully urge you to support Senator FLANDERS' bill to increase salaries of 200 top Government 9331 executives. The cost will be comparatively small and the rewards are certain to be great. W. L. CLAYTON, Anderson & Clayton & Co, FEBRUARY 7, 1949. Senator HERBERT O'CONOR, Senate Office Building, Washington, D. C.. - I am strongly in favor of Flanders bill to increase salaries of 200 top executives. Hope you can give it your full support. ALFRED C. FULLER, Chairman, the Fuller Brush Co., Hartford, Conn. FEBRUARY 7, 1949. Senator HERBERT O'CONOR, Senate Office Building, Washington, D. C.: Understand bill, S. 498, introduced to in- crease salary of some 200 top Government executives is up for immediate consideration. Government, the biggest business on earth, needs the best administrators it can get. Hoover is confident his recommendations cannot be carried- out except by able ad- ministrators and that salary increases are fundamental in attracting right men. I agree with him and hope you do and that you will favor adoption of bill. FRED LAZARUS, Jr., President, Federated Department Stores, Inc. MIDDLETOWN, OHIO, February 7, 1949. Senator HERBERT O'CONOR, Senate Office Building, Washington, D. C.: I strongly urge your support of the bill to increase Federal executive salaries.. After spending a year as chairman of the;Ady,isory Commission on service pay, which made necessary a study of civilian business execu- tives compensation and a comparison with top Government executives' compensation, I am convinced the Hoover recommendations if approved will result in more economic administration. ARMCO STEEL CORP., CHARLES R. HOOK, Chairman. House Committee on Post Office and Civil Service, House of Representatives, Washington, D. C.: As a businessman,, I am happy to endorse House bill 1689, authorizing increased pay for heads of executive departments and inde- pendent agencies. Efficient administration of public business demands today payment of. adequate compensation to policy-directing heads in the executive branch of the Gov- ernment. This will serve to attract to Gov- ernment service the highest type of qualified person and insure the retention of the experi- enced and able public servant. ERIC A. JOHNSTON, President, Motion Picture Association of America, Inc. United States Senate, Washington, D. C.: As a businessman, I am happy to endorse Senate bill 498, authorizing increased pay for heads of executive departments and inde- pendent agencies. Efficient administration of public business demands today payment -of adequate compensation to policy-directing heads in the executive branch of the Gov- ernment. This will serve to attract to Gov- ernment service the highest type ct qualified Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE JULY 8 person and insure the retention of the experi- enced and able public servant. ERIC A. JOHNSTON, President, Motion Picture Association of America, Inc. FEBRUARY 7, 1949. The Honorable HERBERT O'CONOR, United States Senate, Washington, 1). C.: I urge support of bill S. 498, to increase salaries of 200 top Government officials, as it would appear almost a governmental neces- sity to adjust these salaries to modern con- ditions. JOHN D. 'BIGGERS, President, Libbey Owens Ford Glass Co. CANTON, N C., February 8, 1949. Senator HERBERT O'CoNOR, Senate Office Building, Washington, D. C.. I am greatly interested in Senator FLAN- DERS' bill providing for increases in salaries for certain keymen in Government and de- sire to express hearty approval of Senator FLANDERS' objectives. With all other busi- nessmen and taxpayers, I am most anxious to see great reductions in the cost of Gov- ernment; but I am convinced that the Gov- ernment cannot get and keep the type of men it should have in positions of responsi- bility unless it pays them salaries com- mensurate with the skill and experience required. REUBEN B. ROBERTSON, President, Champion Paper & Fiber Co. FEBRUARY 7, 1949. Hon. HERBERT O'CONOR, Senate Office Building, Washington, D. C.: We New Englanders know value of dollar, but hiring mediocre help is false economy. Strongly urge your subcommittee to report favorably S. 498. Mutt pay adequate salaries to obtain competent men to handle biggest business in world. S. ABBOT SMITH, THOMAS STRAHAN CO., Chelsea, Mass. Mr. REES. Mr. Chairman, I yield 3 minutes to the gentleman from Pennsyl- vania [Mr. CORBETT]. Mr. CORBETT. Mr. Chairman, I do not believe there is any great issue in- volved here. We want these top execu- tives to have an increase in salary. The question is how much? I am going to support the Rees amendment when it is offered for the reason that ]: feel that the increases granted by it are very adequate at this time. I know something else which I am sure all of you also know, and that is that sal- aries, once increased by this body, are never decreased. If we find that the in- creases which may be granted are not sufficient, Congress can raise the salaries again. But decreasing salaries is a job that we have never been able to satisfac- torily accomplish. The increases which are granted by the bill are, in many cases, simply too high to justify their adoption. All the telegrams that have been read to you and all of the recommendations that have been brought out are in favor of salary increases for these 244 executive personnel, but they do not advocate any specific amount. I believe you will find on close examination of the Rees substi- tute amendment that the Congress will, by passing that amendment, be very gen- erous with its executive officials. We should :note also that everyone who is supporting this bill is opening the gates to all kinds of requests for salary in- creases from the 2,000,000 or more Fed- eral employees. So we ought to take note of the fact that in pushing for these in- creases ranging up to 100 percent, it is going to be most difficult to refuse to give increases to others who are doing the hard job of efficiently carrying out the functions of this Government. So I am going to urge my colleagues that at the proper time they support the Rees amendment, f,?!ld if that should prove in later years to be insufficient, other increases can be granted. The CHA[RMAN. The time of the gentleman from Pennsylvania [Mr. CoR- BETT] has expired. Mr. MURRAY of Tennessee. Mr. Chairman, I yield 5 minutes to the gen- tleman from Mississippi [Mr. WILLIAMS]. Mr. WILLIAMS. Mr. Chairman, I recognize the need for an increase in salary for the heads of these depart- ments. There has not been an increase for these executives in quite a while. At the same time, I also recognize the fact that the increases should be reasonable ones. In the bill that is presented the House there is a policy involved. I asked the question of every witness who appeared before our subcommittee whether or not he believed that as a matter of policy, without regard to whether or not con- gressional salaries were adequate or in- adequate, he would advocate more pay for the heads of these executive depart- ments than its received by Senator LUCAS, the majority leader in the Senate, or that receive,[[ by the majority leader of the House of Representatives, who must go home every 2 years and seek reelec- tion at the hands of his people. I am still awaiting an answer. I believe the amendment that has been offered by the gentleman from Kansas [Mr. REES] is reasonable. I have dis- cussed these figures with the gentleman from Kansas. The figures that are pre- sented by his substitute give an adequate and reasonable raise to each of these de- partment heads. As was so appropriately stated by the lady from New York [Mrs. ST. GEORGE], people do not look to the compensation received in Government as their only in- centive for serving. They receive a part of their compensation in the knowledge that they have rendered a public service. The way I look at it, a rich man does not look at the salary he is to receive from the Government of the United States for his service as an incentive. The poor man thinks that $10,000 or $12,000 is a good salary and is delighted to get that kind of job. So you are not going to help the situation by raising these salaries 50 or 60 percent, as is called for in the com- mittee bill. I am not willing to say, for instance, that an under secretary of any of the departments is worth as much to his Government and to the people of the United States as the majority leader or the minority leader in either the House or the Senate. Mr. Chairman, I intend to speak again when the gentleman from Kansas [Mr. REES] has offered his substitute amend- ment. It is my understanding that there are available quit a number of copies of the Rees amendment and also an outline showing comparison between the Rees amendment, the present bill as amended, the bill as originally presQrlted, and the present salaries drawn by these employ- ees. I figured it up last night for the em- ployees covered by the Rees amendment, some 205, and found that their salaries will be raised by 26.7 percent. In my opinion, that is a reasonable increase. Not one person appeared before our subcommittee who could tell us of a sin- gle instance of a man who was about to resign because his salary was inadequate, nor could they tell us of a single instance in which a man would be replaced if this new salary bill were not enacted, re- placed by a better employee. Mr. REES. Mr. Chairman, I yield 4 minutes to the gentleman from Iowa ,[Mr. GROSS], a member of the committee. Mr. GROSS. Mr. Chairman, I take this time to briefly state my opposition to the pending bill, H. R. 1689. I was a member of the subcommittee that held hearings on this measure; I voted against sending any such proposal as this out of the Post Office and Civil Service Committee. I am not opposed to reasonable and equitable salary increases, but this pro- posal is unthinkable, unreasonable and inequitable. What is sacred about a $2,- 000 or $2,500 annual salary increase? Yet nearly all these increases are many times that amount. In the hearings on H. R. 1689 not a single witness attempted to justify the proposed increases on the basis of in- creased cost of living. Over and over again we heard the story that salaries at the proposed figures had to be paid to keep private industry from taking men from Government service. Yet not a single witness could or would produce figures to substantiate claims that those leaving Government service for private employment had bettered themselves materially. In considering this outlandish salary increase proposal let's also keep in mind that many of those benefited under this measure are supplied with automobiles, chauffeurs and practically unlimited expense accounts. I say again that I am not opposed to reasonable salaries for Government of- ficials. But in this matter, let us start with the little fellow at the bottom of the list-raise these workers where in- creases are needed. If there's anything left then apply it at the top. In other words, let us reverse the old procedure of giving the crumbs to the little fellow at the bottom of the :list. Yesterday, President Truman told newspaper reporters he is bullish about the economic condition of this country. In the same issue of the same paper- Washington Star-Secretary of Agricul- ture Brannan is quoted as saying the economic situation of farmers is becom- ing serious. The President ought to know that in a Nation, whose basic in- dustry is agriculture, there is no reason for feeling bullish when the economic situation of farmers is serious. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE Any such salary Increases as proposed in their lines finally left the department here are not compatible with the eco- because they could get higher salaries in nomic and debt situation that confronts outside positions; yet it was stated they this country. Further unnecessary ex- would have stayed if the salary were. penditures on the part of the Govern- raised from $10,000 to $15,000. We tried ment will only produce greater deficits to meet that situation in the Appropria- and no mater how thin President Tru- tions Committee by allowing three sal- man slices his bullishness the result will aries to go above $10,000, but not over still be the same. $15,000, but another body of the Congress This, bill will set a had precedent in the decided against this change. This does matter of salaries and wages. It should not mean we have to take every salary in have been amended in committee, not Washington and raise an assistant secre- on the floor of the House. I am against tary, for example, above men who admin- it and whether or not there is a roll ister large and important Government call my vote is hereby recorded in op- agencies. position. Mr. REES. Mr. Chairman, I yield the Mr. REES. Mr. Chairman, I yield 4 remainder of my time to the gentleman minutes to the gentleman from Cali- from Michigan [Mr. DONDERO]. fornia [Mr. PHILLIPS]. Mr. DONDERO. Mr. Chairman, I had (Mr. PHILLIPS of California asked not Intended to speak on this bill, but and was given permission to revise and there has come to my attention what is extend his remarks.) taking place In the city of Detroit or in Mr. PHILLIPS of California. Mr. the Detroit area. I think it worth while Chairman, this bill should be returned to to mention it to the House. Canada has the place whence it came and in due time repealed its wartime excise taxes. As a returned to the lodge, and if a member result of that, the jewelers in Detroit of the committee itself does not offer a find that people are crossing the Detroit motion to recommit I shall do so on the River to Windsor, Canada, just i mile basis of the inequalities which appear in away, to make their purchases. They the bill, go to Canada and buy their jewelry If the Members will read the bill they where there is no excise tax. We still will-see tvhat I,. mea., The Under Sec- have an excise tax of 20 percent on retary of any department, the Under Jewelry. People are crossing the river Secretary of Agriculture, for instance, is 'to buy transportation tickets because to receive $20,000 under the bill, but the they can buy them 15 percent less than Chairman of the Atomic Energy Com- they can buy them In the city of Detroit. mission, who has one of the most respon- Why? Because the United States has sible jobs in the United States today, is not reduced its wartime excise taxes and to receive $18,000. The head of the, CIA Canada has. There is no restraint on is increased f $1n rp; we public spending. No effort toward econ- "E'7gar Tdoover_head of the FBI, is in- omy, and there is no hope for the re- creased from, $14000 to X15,000, Every one of these Under tecretaries and Assistant Secretaries will receive more than Senators and Congressmen, yet do not have the expenses laid upon them that are laid upon Members of Congress: The Chairman of the Council of Eco- nomic Advisers is to be rewarded with a salary of $17,500 while, as I said, the As- sistant Secretaries of the various depart- ments are to receive as much as he will get. The head. of the Reconstruction Fi- nance Corporation, handling billions and billions of dollars, is to be given a salary of $16,000 a year while the Under Secre- tary of Commerce is to receive $20,000 a year. Mr. Chairman, there is no justification for this lack of balance in the bill about which I am speaking. I have so little time that I cannot go into more detail, however if the Members will take the list of salaries in the mimeographed state- ment, or in the bill itself, they will under- stand what I mean by saying this bill should be sent back to the committee for the correction of its obvious inequalities. Mr. Chairman, what brought up a bill like this? At the present time there are probably not more than a few dozen sal- aries in the entire Government picture that actually 'need to be increased, and these are specialists of various kinds. There are specialists in the Department of Agricuture, with whom the gentleman from Georgia, who has just risen, Is fa- miliar, Two or three of these specialists duction of taxes. Only a change in pub- lic opinion or collapse of our economic system will halt this spending spree. I realize this is a small bill, with prob- ably less than $1,250,000 involved, and no doubt there are many justifications in this bill for an increase in salary. One, in particular, Ithink; should be increased more than it is, and that is the salary of J. Edgar Hoover, head of the FBI. That agency has served this Nation, in a splendid way" and has kept a leash on those within our midst who would de- stroy this Government and its way of life. In my opinion there is no restraint on Federal spending here in the Nation's Capital. If one looks at the report of the Secretary of the Treasury, he will become alarmed. Here are his figures which I am going to give you. It shows that there is a change of over $10,- 000,000,000 in receipts and expenditures of this Government in the short space of 12 months. When will Federal spend- ing be curtailed or reduced? Not one of us in this body nor anyone else has ever been able to beat simple arithmetic. It cannot be done. As an example of pub- lie spending, take the subject of eggs. It has cost the taxpayers of this country $93,000,000 for the support price on eggs alone during the last year. That Is just one thing. In addition to that, here are the figures from the Secretary of the Treasury sum- marizing budget results for the fiscal year 1949 compared with 1948. In 1948- and I am speaking of the fiscal year- the receipts of this Government were 9333 $42,250,000,000; for 1949, $38,000,000,000, a drop of almost $4,000,000,000 in re-, ceipts. What 'about expenditures? In 1948 expenditures were approximately $34,- 000,000,000; in 1949, approximately $40,- 000,000,000, or an increase of over $6,- 000,000,000, and the deficit we find this year, as it ended on July 1 for the fiscal year, was $1,810,000,000. The difference between receipts in 1948 and in 1949, .and the expenditures amount to $8,419,- 000,000, or a total change of over $10,- 000,000,000. I admit that $1,250,000 provided in this bill will not provide an enormous strain on-the financial structure of the Govern- ment, but it does become alarming when we consider the trend in this country. Mr. PACE. Mr. Chairman, will the gentleman yield? Mr. DONDERO. I yield to the gen- tleman from Georgia. Mr. PACE. I just wanted to state that it seems to me very unfair to grant Mr. Hoover, who is trying to protect the security of this Nation, a raise of only $1,000, while you are granting men of lesser or insignificant responsibility raises of from $7,000 to $10,000. Mr. DONDERO. The gentleman is entirely correct, and I agree with him. Mr. REES. Mr. Chairman, will the gentleman yield? Mr. DONDERO. I yield to the gen- tleman from Kansas. Mr. REES. I will say to the gentle- man that in the original bill J. Edgar Hoover was not even included, but the committee put him in for an additional $1,000. Mr. DONDERO. Yes, I understand that; and when we consider that in- corded to others, I think it is Insignia-__A cant. The CHAIRMAN. The time of the gentleman from Michigan has expired. (Mr. DONDERO asked and was given permission to revise and extend his re- rr_arks. ) Mr. MURRAY of Tennessee. Mr. Chairman, I yield such time as he may desfre to the gentleman from Norta Caro- lina [Mr. DEANEI. Mr. DEANE. Mr. Chairman, I join with my colleagues who look upon our Federal budget today with concern. The gentleman from Michigan [Mr. DONBE%Q] spoke apparently in support of the repeal of the excise taxes. I realize that these were wartime taxes and we should take wise, action in determining what is best for our entire economy with reference to excise taxes. However, I think the gen- tleman needs to recall the action of the Eightieth Congress and be frank enough to admit that we have the excise taxes today because they were made permanent during the Eightieth Congress in order to effect the Eightieth Congress income tax cut. It Is generally conceded that the income-tax cut made during the Eight- ieth Congress could not have-been done without the retention of the excise taxes. Therefore, in a large measure the con- dition of the Federal budget position to- day is due to the action of the Eightieth Congress in cutting income taxes at a time when there was little demand for Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9334 CONGRESSIONAL RECORD-HOUSE JULY 8 such action except; from those best able to pay. I recognize the fact that it now apears perhaps unwise to increase taxes, but we should certainly orient our think- ing in terms of what is best in carrying out the services of the Federal Govern- ment and not make the mistakes that were made in the Eightieth Congress in breaking down the tax-producing meth- ods that are so essential if we maintain the services demanded by the people of this country. I am one of those who believe in pro- tecting our Federal economy by bring- ing into the Federal service our best and most able administrators. Therefore, must we not, Mr. Chairman, take action now in behalf of our national economy by extending some degree of considera- tion to those key men in the Federal service who must have some considera- tion from this Congress. . We certainly will take favorable action if we believe in good administration. At the present moment it appears that there is pending before the Congress for national defense a suggested appropria- tion of $13,000,000. I submit, Mr. Chair- man, that we could very easily suggest some real economy in the national-de- fense program to the end that the amount of money represented by the in- crease in Federal expenditures in this bill could easily be absorbed without in- jury whatsoever to the national-defense program. Mr. Chairman, the Comptroller Gen- eral of the United States, the Honorable Lindsay C. Warren, is looked upon by all of us who know him as one of the most outstanding public servants in the Fed- eral service. W ithin recent days Mr. Warren appeared before the Subcom- mittee on Compensation and Personnel, Committee on Post Office anti Civil Serv- ice, United States Senate, in support of additional compensation for key per- sonnel in the Federal service. I would like to quote from the statement by our able and outstanding Comptroller Gen- eral: I served for 16 years as a Member of the House of Representatives. Throughout that period and in my present capacity as Comp- troller General, I have been deeply concerned at the growing difficulty of attracting able men to the service of the Government and keeping them there. I do not intend what is said here to be taken as criticism of any officer now in the Government. Indeed, I have said many times that we have some of the finest administrators to be found any- where. Rather it is my hope that something will be done to keep these mean and to ob- tain the services of others of equal caliber. The task of administering a large and far- flung organization is by and large one of get- ting the right men for the right jobs and retaining them. The necessary formula for a successful private business :Is to get the best men you can to run it, whether at high cost or low. Such necessity is tenfold greater in the Government-the biggest business in the world-where the stakes are so high, the operations so broad, and the pitfalls so deep. We cannot hope to get and retain such men if we will not pay the price. Right now I think it will be conceded that the reward- if it can be called that-for public service too often is pitifully inadequate. Too often the compensation is trivial when compared to the job being done and what could be earned elsewhere. It has driven out many of those best qualified, has created hardship on those who stay at their posts through devotion to duty, and operated as a deter- rent to any effective injection of new blood. There are both rewards and penalties for those in public office. I do not advocate that the Government meet salaries offered by industry, because that cannot be af- forded. But at least the salaries should be such as to attract and keep able public men without too great a sacrifice on their part. Widely in the Government service there are spread groups of fine employees who demand and are paid the prevailing wage scale. The Congress requires that the same scale be paid by those holding large Government con- tracts. I know no justification at all for denial of somewhat more nearly prevailing wages for the relatively few executives who are responsible for directing the far-flung activities of the Government. It is obvious that some (I repeat some) narrowing of the widespread in executive salaries between pri- vate and public business is called for. I do not plead the cause of any job holder, or ask for help or benefits for anyone, no matter how deserving. It has been and is my policy-though sometimes seeming to be a voice crying In the wilderness-to speak out for the interests of the Government, which means fo;r the interests of the United States as a whole. Government is called upon to be, in a worldly sense, the savior and protector of all of us, our bulwark for a free economy an a troubled and confused world. Is it not obvious we hurt ourselves, that is, our country and its people, when we fail to provide the wherewithal to get done the job the people demand? Are we not be- ing penny wise, pound foolish? What are the facts? I know of my own knowledge of a number of agency heads who after fine and faithful service were forced to leave for the greener pastures elsewhere, and I know of many other able men whose services the Government was denied because in this competitive world the biggest busi- ness of them all could not reward them ac- cording to their worth. The fact is that in some quarters the turn-over has been so fre- quent that no sooner do we in our daily contacts get acquainted with those in charge than thej are changed and new ones come in. The sad part its that many leave just as they have learned to know their jobs and are in position to render service of real value-and sometimes even before. Some executive positions in the Government have gone begging for months. In my reports to Congress I have called to account time and time again agencies which were poorly run, inadequately staffed, incompetently managed. This has been done in pursuance of my duty under the law, and with full knowledge that the need is for bet- ter management in the executive positions. We have all said we must have better men to turn the wheels of Government. But here as anywhere else, you get only what you pay for. Anyone who really seeks better Govern- ment, who opposes waste, extravagance, and inefficiency, will further that cause by sup- porting this legislation to give the President the best human equipment to run this com- plicated Government machine. I think this bill goes far-perhaps here and there not far enough-to supply that need. I endorse it wholeheartedly and congratulate you gen- tlemen for your resolution to do something to remedy a bad situation in our Govern- ment. Mr. Chairman, there has long been a compelling need to increase the rates of compensation of heads and assistant heads of the executive departments and other officials of the Government who are charged with much responsibility. I sincerely feel that some action in this di- rection must be taken if the Government is to obtain and keep the services of qualified executives. The Government may be able to obtain the services of per- sons to fill these responsible positions at the present salary rates only if it disre- gards the qualifications of such persons. Once the services of capable persons are obtained for these executive posi- tions, consideration must be given to the retention of them. Any appreciable turn-over in top-flight executives is not in the interest of the Government. Many top-flight executives will remain in these Government positions where ex- traordinary ability is required for a lim- ited time only unless there is some pro- vision for adequate salaries. The annual salaries of top executives in outside industry, in positions compar- able to the positions covered in this pro- posed legislation, range from $75,000 to $300,000 per annum. (Mr. DEANE asked and was given per- mission to revise and extend his re- marks.) Mr. MURRAY of Tennessee. Mr. Chairman, I yield the balance of my time to the gentleman from Minnesota [Mr. MCCARTHY]. Mr. McCARTHY. Mr. Chairman, I take this time to correct one or two of the remarks made in debate by the oppo- nents of this pay increase. The gentleman from Pennsylvania ob- served that once pay increases are given there is no tradition of any reduction. I would remind him of the Economy Act of 1934, which is within the memory of most of us, when Government salaries were reduced by 15 percent. The opponents of this increase are, however, in good tradition in insisting upon low pay for public servants. The expression of this attitude goes back to the Constitutional Convention in 1887. At that Convention, Mr. Gerry, from Massachusetts, stated: One of the principal evils in representative government arises from the want of due pro- vision for those employed in the adminis- tration of government. It would seem to be a maxim of democracy to starve the public servant. For the information of the committee, a comparison of the salaries now being paid to the civilian employees of the Gov- ernment with those which this House ap- proved for the members of the armed services points out some rather interest- ing contrasts. At the present time, ac- cording to the committee report, there are slightly over 3,000 civilian employees who receive more than $10,000 a year, out of about 2,000,000 employees. Under the pay bill we have just passed there will be 27,784 members of the armed services who will receive more than $10,000 per year, out of slightly more than 1,500,000 members. There has been some concern expressed here that Government employees should receive a good deal of satisfaction which is nonfinancial or nonpecuniary in na- ture. Let me say to the members of the committee that if this pay bill is passed Government employees will still have an opportunity to enjoy that kind of satis- faction. The salaries proposed in this bill are so far below those paid in com- parable positions in private industry that Approved For Release. 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 ~T F Approved Fbr,;ease 1 : CIA-RD P57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE public servietr; will not be for sale and loyalty ancl?`patriotism not reduced to a cash-pay ent basis. (Mr. cCARTHY asked and was given permiion to revise and extend his re- T e CHAIRMAN. The time of the ge Leman from Minnesota has expired. A time has expired. The Clerk will read the bill for amend- ent. The Clerk read as follows: Be it enacted, etc., That the rate of basic compensation of the head of each executive department and of the Secretary of Defense shell be $25,000 per annum. SEC. 2. (a) The rate of Itisic compensation of the Chairman of the Atomic Energy Com- mission, the Administrator for Economic Co- operation, the Comptroller General of the United States, the Chairman of the Council of Economic Advisers, the Director of the Bureau of the Budget, the Chairman of the National Security Resources Board, the Fed- eral Security Administrator, the Administra- tor of Veterans' Affairs, the Chairman of the Board of Governors of the Federal Reserve System, each Under Secretary of an execu- tive department, the .saistant to the Attor- ney General, the Solicitor General of the United States, and the First Assistant Post- master General shall be $22,500 per annum. (b) Section 105 of title 3 of the United States Code is amended to read as follows: "COMPENSATION OF SECRETARIES AND EXECUTIVE, ADMINISTRATIVE, AND STAFF ASSISTANTS TO PRESIDENT "SEC. 105. The President is authorized to fix the compensation of the six administra- tive assistants authorized to be appointed under section 106 of this title, of the Execu- tive Secretary of the National Security Coun- cil, and of`five other secretaries or other im- mediate staff assistants in the White House Office as follows: Two at rates not exceeding $22,500 per annum, three at rates not ex- ceeding $20,000 per annum, and seven at rates not exceeding $17,500 per annum." (c) The first. sentence of section 106 of title 3 of the United States Code is amended to read as follows: "The President is author- ized to appoint not to exceed six administra- tive assistants and to fix their. compensation in accordance with section 105 of this title." SEC. 3. (a) The rate of basic compensation of the Housing and Home Finance Adminis- trator, the Federal Works Administrator, the members (other than the Chairman) of the Board of Governors of the Federal Reserve System, the members (other than the Chair- man) of the Council of Economic Advisers, the members (other than the Chairman) of the Atomic Energy Commission, the Public Printer? the Librarian of Congress, the Federal Mediation and Conciliation Di- rector, the Chairman of the Munitions Board, the Chairman of the Research and Develop- ment Board, the Director of Central Intelli- gence the efs puryy"-A'diti1iiistra or_for Eco- omie Cooperation, the Assistant Comptroller General of the United States, the Assistant Director of the Bureau of the Budget, the Executive Assistant Administrator of Veter- ans' Affairs, and the Assistant Federal Secur- ity Administrator shall be $20,000 per annum. (b) The- first sentence of section'803 of title 28 of the United States Code (relating to the salary of the Director of the Administra- tive Office of the United States Courts) is amended to read as follows: "The Director shall receive a salary of $20,000 a year." SEC. 4. (a) The rate of basic compensation of the members of the Home Loan Bank Board; the Public Housing Commissioner; the Federal Housing Commissioner; the Housing Expediter; the War Assets Admin- istrator; the Director of Selective Service; the Director of Aeronautical Research of the National Advisory `Committee for Aero- nautics; the Archivist of the United States; of all members of the Civil Aeronautics Board; the Displaced Persons Commission; the Board of Directors of the Export-Import Bank of Washington; the Federal Communi- cations Commission; the Board of Directors of the Federal Deposit Insurance Corpora- tion (including the Comptroller of the Cur- rency); the Federal Power Commission; the Federal Trade Commission; the Interstate Commerce Commission; the National Labor Relations Board; the National Mediation Board; the Railroad Retirement Board; the Board of Directors of the Reconstruction Finance Corporation; the Securities and Ex- change Commission; the Board of Directors of the Tennessee Valley Authority; the Civil Service Commission; the United States Maritime Commission; the United States Tariff Commission; the Indian Claims Com- mission; the War Claims Commission; the Philippine War Damage Comnssion; the Board of Commissioners of the District of Columbia; of the . General Counsel of the National Labor Relations Board; each Assist- ant Secretary of an executive department (including the Fiscal Assistant Secretary of the Treasury); each Assistant Attorney Gen- eral; the Assistant Solicitor General of the United States; the Counselor of the Depart- ment of State; the Second, Third, and Fourth Assistant Postmaster General; the Associate Federal Mediation and Conciliation Director; t12"lZeuty Director of Central Intelligence; the Philipp fie Alien Property Administrator; the Chief Assistant Librarian of Congress; the Deputy Public Printer; the Architect of the Capitol; the Assistant Federal Works Ad- ministrator; and of the Governors of Alaska, Hawaii, the Virgin Islands, and the Panama Canal shall be at the rate of L17,500peer annum. 146standing the act of Febru- ary 23,'1931 (5 U. S. C. 152a), the salary of the legal adviser of the Department of state shall not be increased as a result of this act. (b) The second sentence of section 603 of title 28 of the United States Code (relat- ing to the compensation of the Assistant Director of the Administrative Office of the United States Courts) is amended to read-as follows: "The Assistant Director shall receive a salary of $17,500 a year." SEC. 5. In any case in which the chairman or other head of a board or commission, the rate of basic compensation for members of which is prescribed by section 4 of this act,. has important duties or responsibilities not imposed upon other members of such board or commission, the President is authorized in his discretion to fix the compensation of such chairman or other head at the rate of $20,000 per annum. SEC. 8. (a) Section 804 of the Postal Rate Revision and Federal Employees Salary Act of 1948 is hereby repealed effective as of July 3, 1948. No additional compensation shall be payable by reason of the enactment of this section for any period prior to the date of enactment of this section for any period prior to the date of enactment of this act in the case of any person who is not an em- ployee in or under the municipal govern- ment of the District of Columbia on such date of enactment. (b) Effective as of the first day of the first pay period which began after June 30, 1948, each of the rates of basic compensation pro- vided by sections 412 and 415 of the Foreign Service Act of 1946 (U. S. C., title 22, secs. 867 and 870) which do not exceed $10,000 are hereby increased by $330. No additional com- pensation shall be payable by reason of the enactment of this section for any period prior to the date of enactment of this act in the case of any person who is not a Foreign Service officer or a Foreign Service staff offi- cer or employee on such date. Mr. REES.. Mr. Chairman, I offer an amendment in the nature of a substitute. Mr. JRRAY of Tennessee. Mr. Chairm n, this bill is in the form of a comm tee amendment. The original bill as stricken out and this language ins ted. I think the committee amend- m t should be perfected by any-amend m nts before the substitute is taken up. The CHAIRMAN. The Clerk will read t e committee amendment. The Clerk read as follows: Committee amendment: Strike out all after he enacting clause and insert "That the rate of basic compensation of the head of each executive department and of the Secretary of Defense shall be $25,000 per aiThum. "SEC. 2. (a) The rate of basic compensa- tion of the Administrator for Economic Co- operation, the Comptroller General of the United States, the Chairman of the Council of Economic Advisers, the Director of the Bureau of the Budget, the Chairman of the National Security Resources Board, the Fed- eral Security Administrator, the Administra- tor of Veterans' Affairs, each Under Secretary of an executive department, the Assistant to the Attorney General, the Solicitor General of the United States, and the First Assistant Postmaster General shall be $20,000 per annum. " (b) Section 105 of title 8 of the United States Code is amended to read as follows: "'COMPENSATION OF SECRETARIES AND EXECU- TIVE, ADMINISTRATIVE, AND STAFF ASSISTANTS TO PRESIDENT "'? 105. The President is authorized to fix the compensation of the six administrative assistants authorized to be appointed under section 106 of this title, of the Executive Sec- retary of the National Security Council, and of five other .secretaries or other immediate staff assistants in the White House Office as follows: Two at rates not exceeding $20,000 per annum, three at-rates not exceeding $18,- 000 per annum, and, seven at rates not exceeding $16,000 per annum."' (c) The'first sentence of section 106 of title 3 of the United States Code is amended to read as follows: "The President is au- thorized to appoint not to exceed six ad- ministrative assistants and to fix their' compensation in accordance with section 105 of this title." "SEC. 3. (a) The rate of basic compensation of the Hpusing and Home Finance Adminis- trator, the Federal Works Administrator, the Chairman of the Atomic Energy Commission, the Chairman of the Munitions Board, the Chairman of the Research and Development Board, the Deputy Administrator for Eco- nomic Cooperation, the Assistant Comptroller General of the United States, the Assistant Director of the Bureau of the Budget, and the Deputy Administrator of Veterans' Affairs shall be $18,000 per annum. "(b) The first sentence of section 603 of title 28 of the United States Code (relating to the'salary of the Director of the Adminis- trative Office of the United States Courts) is amended to read as follows; "'The Director shall receive a salary of $17,500 a year."' "(c) The rate of basic compensation of the Public Printer, the Librarian of Con- gress, the members (other than the Chair- man) of the Council of Economic Advisers, the Director of Central Intelligence, the Fed- eral Me a n andJonciliation Director, and the Assistant Federal Security Administrator shall be 17,500 Der annum. EC. . The rate of basic compensation of the members of the Board of Governors of the Federal Reserve System; the Director of Aeronautical Research of the National Advisory Committee for Aeronautics; mem- bers of the Civil Aeronautics Board; the Chairman of the Board of Directors of the Export-Import Bank of Washington; mem- bers of the Federal Communications Com- mission; members of the Board of Directors of the Federal Deposit Insurance Corpora- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9336 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE JULY 8 tion (including the Comptroller of the Cur- rency); members of the Federal Power Com- mission; members of the Federal Trade Com- mission; members of the Interstate Com- merce Commission; members of the Na- tional Labor Relations Board; members of the National Mediation Board; members of the Railroad Retirement Board; the Chair- man of the Board of Directors of the Re- construction Finance Corporation; mem- bers of the Securities and Exchange Com- mission; members of the Board of Directors of the Tennessee Valley Authority; mem- bers of the Civil Service Commission; the Chairman of the United States Maritime Commission; members of the United States Tariff Commission; members (other than the Chairman) of the Atomic Energy Com- mission; the General Counsel of the Na- tional Labor Relations Board; the Architect of the Capitol; and the Assistant Federal Works Administrator shall be at the rate of $16,000 per annum. "SEC. 5. (a) The rate of basic compensa- tion of the Housing Expediter; the War Assets Administrator; the Director of Se- lective Service; the Archivist of the United States; members of the Displaced Persons Commission; members of the Indian Claims Commission; members, of the War Claims Commission; members of the Philippine War Damage Commission; members of the Board of Commissioners of the District of Colum- bia; each Assistant Secretary of an executive department (including the Fiscal Assistant Secretary of the Treasury); each Assistant Attorney General; the Assistant Solicitor General of the United States; the Counselor of the Department of State; the Second, Third, and Fourth Assistant Postmasters General; the Associate Federal Mediation and Conciliation Director; the_ Deputy_ _D17_ rector of Central Intelligance; the Philip- pine Allen Property Administrator; the Chief Assistant Librarian of Congress; the Deputy Public Printer; members (other than the Chairman) of the Board of Di- rectors of the Export-Import Bank of Wash- ington; members (other than the Chair- man) of the Board of Directors of the Re- construction Finance Corporation; members (other than the Chairman) of the United States Maritime Commission; Administrator, Production and Marketing Administration; Commissioner of Internal Revenue; Director of the Bureau of Prisons; director, Federal Bureau of Investigation; Commissioner of Public Roads; Commissioner of Public Buildings; Commissioner of Community Facilities; Commissioner of Immigration and Naturalization; administrator, Rural Electri- fication Administration; Commissioner for Social Security; Commissioner of Reclama- tion; chief, Soil Conservation Service; Com- missioner of Customs; Governor of the Farm Credit Administration; Chief Forester of the Forest Service; Administrator of the Farmers Home Administration; the three Special Assistants to the Secretary of De- fense; and of the Governors of Alaska, Ha- waii, the Virgin Islands, and the Panama Canal shall. 4p, At- the, rate of $15,000 per annum. Notwithstanding section 30 of the act of May 24, 1924, as amended (U. S. C., title 5, sec. 152a), the salary of the Legal Adviser of the Department of State shall continue to be at the rate of $10,330 per annum. "(b) The second sentence of section 603 of title 28 of the United States Code (relat- ing to the compensation of the Assistant Di- rector of the Administrative Office of the United States Courts) is amended to read as follows: "The Assistant Director shall re- ceive a salary of $15,000 a year." "(c) The rate of compensation of the Legislative Counsel of the House of Repre- sentatives and of the Legislative Counsel of the Senate shall be $12,000 per, annum. "SEc. 6. In any caes in which the chair- man or other head of a board or commis- Sion and the other members of such board or commission receive t;)ie same rate of basic compensation under This act, and such chairman or other head has important duties or responsibilities not imposed upon other members of such board or commission, the President is authorized in his discretion to fix the compensation of such chairman or other head at the rate of $18,000 per annum. "SEc 7. (a) Section 304 of the Postal Rate Revision and Federal Employees Salary Act of 1948 is hereby repealed effective as of July 3, 1948. No additional compensation shall be payable by reason of the enactment of this section for any period prior to the effective date of this act in the case of any person who is not an employee in or under the municipal government of the District of Columbia on such date. "(b) Effective, as of the first day of the first pay period which began after June 30, 1948, each of the rates of basic compensa- tion provided by sections 412 and 415 of the Foreign Service Act of 1946 (U. S. C., title 22, secs. 867 and 870) which do not exceed $10,000 are hereby increased by $330. No additional compensation shall be payable by reason of the enactment of this section for any reriod prior to the effective date of this ac in the case of any person who is not a Foreign Service officer, a Foreign Service Re- serve officer, or a Foreign Service staff officer or employee on such date. "(c) No person whose compensation is in- creased by this section shall be entitled to any overtime pay, or compensation for night and holiday work, as provided in sections 201, 301, and 302 of the Federal Employees Pay Act of 1945, as amended, based on the addi- tional compensation provided by this section for any pay period ending prior to the ef- fective date of this act. "SEc. 8. This act shall take effect on the first day of the first pay period which begins after the date of enactment of this act." Mr. MURRAY of Tennessee (interrupt- ing the reading of the committee amend- ment). Mr. Chairman, I ask unanimous consent that the committee amendment be considered as read and that it be open for amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Tennessee? There was no objection. Mr. MURRAY of Tennessee. Mr. Chairman, I have several amendments at the Clerk's desk, which I now offer. The Clerk read as follows: Amendments offered by Mr. MURRAY of Tennessee: On page 7, line 3, insert before the word "each", the following: "the Administrator of General Services." On page 7, line 25, and page 8, line 1, strike out "the Federal Works Administrator." On page 9, lines 17 and 18, strike out "As- sistant Federal Works Administrator", and insert in lieu thereof the following: "Deputy Administrator of General Services." On page 9, line 21, strike out "War Assets Administrator", and Insert in lieu thereof, the following "'Director of the Bureau of Fed- eral Supply." Page 9, line 23, insert after "States", the following: "the Assistant Architect of the Capitol." Mr. ROGERRS of Florida. Mr. Chair- man, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. ROGE:ELS of Florida. Mr. Chair- man, I have an amendment to section 3 on page 8. 'Would it take precedence over everything after that, or will I have the opportunity to offer it after the gen- tleman from Tennessee discusses these amendments'? The CHAIRMAN. The gentleman from Florida may be recognized to offer his amendment after the pending amend- ments are disposed of. Mr. MURRAY of Tennessee. Mr. Chairman and Members of the Commit- tee, these amendments, with the excep- tion of the last amendment which was read by the Clerk are offered because of the enactment of the Federal Property Administrative Services Act of 1949, which was approved on June 30, 1949. This act transferred the functions of the War Assets Administration, the Federal Works Agency, the National Archives, and the Bureau of Federal Supply to the new agency known as the General Serv- ices Administration. Because of this consolidation, the amendments are necessary to eliminate from H. R. 1689 the following positions: Federal Works Administrator, Assistant Federal Works Administrator; and the War Assets Administrator. All three of these positions were abolished by this act creating the Federal Property and Administrative Services. The act also provides for the appointment of an Ad- ministrator of General Services. He has already been appointed. His nomina- tion has been confirmed by the Senate. The man is Mr. Jess Larson. The pur- pose of these amendments is to strike from this bill the War Assets Adminis- trator, the Federal Works Administrator, the Deputy Federal Works Administra- tor, and to put in Mr. Larson as head of the Administrative Services Agency, put- ting him in the $20,000 bracket, because he has a most responsible position, hav- ing charge of public buildings, Federal works, ordering supplies, public roads, and the National Archives. Since the position of the Federal Works Adminis- trator and the Deputy Federal Works Administrator and the War Assets Ad- ministrator have already been abolished by act of Congress, I am sure there can be no objection to striking those posi- tions out of this bill and having the Ad- ministrator of General Services, and also the Deputy Administrator of General Services included in the bill. I propose to put the Administrator of General Services in the $20,000 bracket and the Deputy General Services Ad- ministrator in the $16,000 bracket. That is the purpose of the amendment. The CHAIRMAN. The question is on the amendments offered by the gentle- man from Tennessee [Mr. MURRAY]. The amendments were agreed to. Mr. REES. Mr. Chairman, I offer an amendment in the nature of a substitute for the committee amendment. Mr. ROGERS of Florida. Mr. Chair- man, I have a perfecting amendment to the committee amendment, which would take priority, as I understand it. The CHAIRMAN. The Clerk will re- port the amendment offered by the gen- tleman from Kansas [Mr. REES]. Mr. ROGERS of Florida. Mr. Chair- man, I have a perfecting amendment to the committee amendment, which would take precedence, in my opinion, over the substitute. The CHAIRMAN. The Chair desires to make a statement. There is pending before the Committee a committee amendment. The gentleman from Kan- sas [Mr. REES] has offered an amend- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11: CIA-RDPi~-b038 R0D'UQ ( 1 ' 9 1949 CONGRESSIONAL RECORD-HOUSE other Member, can offer amendments zicie. SEC. 3. The rate of basic compensation of perfecting the committee amendment. the Chairman of the Munitions Board, the The order will be, first, the amendment s Chairman of the Research and Development perfecting the committee amendments; ,Board, the Assistant. Comptroller General of next, on the perfecting amendments, if the United States, the Assistant Director of any, to the substitute amendment; thef on the substitute amendment; and tl;en on the committee amendment. Mr. HALLEC1 . Mr. Chairman, apar= liamentary inquiry. The CHAIRMAN. The gentleman will state it. f . Mr. HALLECK. If the substitute amendment is voted down, w14-the com- mittee amendment still by open to amendment? The CHAIRMAN. It will, The Clerk will report the amendment offered by the gentleman from Kansas. Mr. ROGERS of Florid. Mr. Chair= man,`a point of order. My amendment is k perfecting amendniknt to the com- mittee amendment. Will that not take precedence? The CHAIRMAN. he gentleman will have an opportunity Po offer his perfect- ing amendment. The Clerk will report"the amendment offered by the ge . tleman from Kansas [Mr. REES]. .Mr. MURRAY of Tennessee. Mr. Chairman, the Cl rk did not read the last two amendment which I have on the Clerk's desk, w ch are perfecting com mittee amend nts. The CHAIR AN. After the Clerk re- ports the ame ment offered by thegen- tlemah from Kansas [Mr. BEES] the Chair will dir ct the" Clerk to report the amendment ffered by the gentleman The Clerk/read as follows; Substitute amendment for the committee amendment offered by Mr. REES: "That the rate of basic compensation of the head of each executive department and of the Secre- tary of Defense shall be $25,000 per annum. "SEC. 2. (a) The rate- of basic compensa- tion of the Comptroller General of the United, States, the Chairman of the Council of Economic Advisers, the Director of the Bureau of the Budget, the Chairman of the National Security Resources Board, the Fed- eral Security Administrator, the Administra- tor of Veterans' Affairs, the Administrator of General Services, each Under Secretary of an executive department, the Assistant to the Attorney General,. the Solicitor General of the United States, and the First Assistant Postmaster General shall be $17,600 per annum. ' (b) Section 105 of title 3 of the United States Code is amended to read as follows: "'COMPENSATION of SECRETARIES AND EXECU- TIVE, ADMINISTRATIVE, AND STAFF ASSISTANTS TO PRESIDENT "'SEC. 105. The President is authorized to fix the compensation of the six administra- tive assistants authorized to be appointed under section 106 of this title, of the Execu- tive Secretary of the National Security Council, and of five other secretaries or other immediate staff assistants in the White House Office as follows: Two at rates not, ex ceeding $16,000 per annum, three at rates not exceeding $15,000 per annum, and seven at rates not exceeding $12,000 per annum.' '(c)- The first sentence of section 106 of title 3 of the United States Code is amended to read as follows: The President is author- the Bureau of the Budget, the Director of the Federal Bureau of Investigation, and the Deputy Administrator of Veterans' Affairs, the Public Printer, the Librarian of Congress, the Director of Central Intelligence, the Fed- ei'aI-'Me-Mdtlori anUT-i/oriciliation Director, and the Assistant Federal Security Adminis- trator shall be $15,000,per annu_n "SEC. 4. (a) The rate of basic compensa- tion of the Director of Aeronautical Research of the National Advisory Committee for Aero- nautics; members of the Civil Aeronautics Board; members of the Federal Communica- tion Commission; members of the Federal Power Commission; members of the Federal Trade Commission; members of the Inter- state Commerce Commission; members of the National Labor Relations Board; mem- bers of the National Mediation Board; mem- bers of the Railroad Retirement Board; members of the Securities and Exchange - Commission; members of the Board of Direc- tors of the Tennessee Valley Authority; members of the Civil Service Commission; the Chairman of the United States Maritime Commission; members of the United States Tariff Commission; the General Counsel of the National Labor Relations Board; the Architect of the Capitol; the Deputy Ad- ministrator of General Services; the Hous- ing Expediter; the Director of the Bureau of Federal Supply; the Archivist of the United States; members of the Displaced Persons Commission; members of the Indian Claims Commission; members of the - War Claims Commission; members of the Philippine War Damage Commission; members of the Board of -Commissioners of the District of Colum- bia; each Assistant Secretary of an executive department (including the Fiscal Assistant Secretary of the Treasury); each Assistant Attorney General; the Assistant. Solicitor General of the United States; the Counselor of the Department of State; the Second, Third, and Fourth Assistant Postmasters Gen- eral; the Associate Federal Mediation and Conciliation Director; the Deputy Director Centrr~ intellience` theme ppi ne Alien r]?~operty Administrator; the Chief Assistant Librarian of Congress; the Deputy. Public Printer; members (other than the Chairman) of the board of directors of the Export- Import Bank of Washington; members (other than the Chairman) of the United States Maritme Commission; Administrator, Pro- duction and Marketing Administration; Commissioner of Internal Revenue; Director of the Bureau of Prisons; Commissioner of Public Roads; Commissioner of Public Build- ings; Commissioner of Community Facilities; Commissioner of Immigration and Natural- ization; Administrator, Rural Electrification Administration; Commissioner for Social Se- curity; Commissioner of Reclamation; Chief, Soil Conservation Service; Commissioner of Customs; Governor of the Farm Credit Ad- ministration; Chief Forester of the Forest Service; Administrator of the Farmers Home Administration; the three Special Assistants to the Secretary of Defense; and of the Gov- ernors of Alaska, Hawaii, the Virgin Islands, and the Panama Canal shall _l 2$0 annum, Notwithstanding l $. on o t e"et of May 24, 1924, as amended (U. S. C., titl(! 5, sec. 152a),'the salary of the Legal Adviser of the Department of State shall continue to be at the rate of $10,330 per annum. "(b) The first sentence of section 603 of title 28 of the United States Code (relating 9337 to the salary of the Director of the Adminis- trative Office of the United States Courts) is amended to read as follows: "'The Director shall receive a salary of $12,500 a year.' - "(c) The second sentence of section 603 of title 28 of the United States. Code (relating to the compensation of the Assistant Director of the Administrative Office of the United States Courts) is amended to read as follows: 'The Assistant Director shall receive a salary of $11,000 a year.' "(d) The rate of compensation of the Leg- islative Counsel of the House of Representa- tives and dl the Legislative Counsel of the Senate shall be $12,000 per annum. "SEC. 5. In any case in which the chairman or other head of a board or commission and the other members of such board or commis- sion' receive the_ same rate of basic compen- sation under this act, and such chairman or other head has important duties or respon- sibilities not imposed upon other members of such board or commission, the President is authorized in his discretion to fix the com- pensation of such chairman or other head at the rate of $15,000 per annum. "SEC. - 6. This act shall take effect on the first day of the first pay period which begins after the date of enactment of this act." Mr. CORBETT (interrupting the read- ing of the amendment). Mr. Chairman, I ask unanimous consent that the further reading of the substitute be dispensed with. It is rafher lengthy, but I under, stand copies are available at the Clerk's desk. - The CHAIRMAN. Is there objection to the request of the gentleman from Pennsylvania? - There was no objection. The CHAIRMAN. Would the gentle- man from Kansas object to the - Clerk reporting the amendments offered by the chairman of - the committee [Mr. MuR- RAY]? Mr. REES. I have no objection, Mr. Chairman. - The CHAIRMAN. The Clerk will re= port the committee amendments offered by the gentleman from Tennessee. The Clerk read as follows: - Amendment offered by Mr. MURRAY of Ten- nessee: Strike out section 7, beginning on page 12, line 1, and ending on page 13, line 2. On page 13, after line 2, insert the follow- ing new section: "SEC. 7. The applicable appropriation for the fiscal year ending June 30, 1950, shall be available for payment of compensation at the rate established for any position by or pursuant to this act unless it is specifically provided that such appropriation shall not be available for such purpose." Mr. MURRAY of Tennessee. Mr. Chairman, the first amendment strikes out section 7, and is offered for this rea- son: - It provided for a retroactive in- crease to July 1, 1948, of the classified .employees of the District of Columbia and the foreign service, of $330 per an- num. As the Members know, the Con- gress has already passed a bill authoriz- ing retroactive pay of $330 per year for the employees of the District of Columbia and the Foreign Service, to July 1, 1948. So this language is not necessary and should be stricken out, because it has al- ready been taken care of by separate leg- islation. Mr. DONDERO. Mr. Chairman, will the gentleman yield? Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9338 Approved For Release 2000/08/11 CIA-RDP57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE JULY 8 Mr. MURRAY of Tennessee. I yield. Mr. DONDERO. And that will reduce the amounts specified in the report from about $6,000,000 to $1,237,000? Mr. MURRAY of Tennessee. That is correct. The second amendment, Mr. Chair- man, is simply a clarifying amendment providing that the appropriations end- ing June 30, 1950, shall be available for the payment of this compensation. The CHAIRMAN. The question is on the committee amendments. - The committee amendments were agreed to. The CHAIRMAN. The gentleman from Kansas is recognized for 5 minutes? Mr. REES. Mr. Chairman, in an ef- fort to facilitate matters, because of the short time during which to discuss this measure, being only 30 minutes on our side, I have made reprints of my amend- ment available, also mimeographed copies of comparative statements with respect to the changes I propose in this legislation. Before beginning a discussion of this amendment I recall that J. Edgar Hoover's name has been mentioned several times by other Members during this discussion. I also hold Mr. Hoover in the highest regard. In fact, I think he is one of the greatest men in Govern- ment today. Sometimes I think he has not received the support to which he is entitled, but let me say to you that when the bill was first submitted, the office of the Federal Bureau of Investigation was not included. It was put in the bill, however, by the committee at a salary of $15,000. My amendment does not change that figure. Personally, I agree he is entitled to higher pay. Mr. Chairman, as I said at the outset, I am not objecting to reasonably in- creasing the salaries of this group of em- ployees. I call your attention to the fact that these 240 people are not civil-serv- ice employees. Very few of them ever have been; so do not get them confused, please, with career employees. These people are appointed to jobs, appointed by the President, some confirmed by the Senate and others not. My amendment does not affect the salaries of the members of the Cabinet, although you do increase their salaries as much as 66 percent in this bill. Now look at section 2 of the bill. You will find the Under Secretaries, and there are many of them who are presently being paid $10,330 a year. There are about four exceptions who get $1.2,000. Under this bill you pay them $20,000. In other words, you double their salaries at one swoop. My amendment attempts to (*mpro>nise that figure. It seems to me that $20,000 for these Under Secretaries Is far out of line. Section 2 of this bill authorizes the President to employ assistants to the President, special counsel to the Presi- dent, and secretaries to the President. In section 3, you have various assistants and deputy administrators several of them presently receiving $10,000. This bill would pay then $17,500 an increase of $7,500 per year. This is an increase of 75 percent. There is mentioned in this bill an office that many never heard of before, the Director of the Administrative Office of the United States Courts, He now gets $10,000; under this bill you give him $17,500. I thing.$12,500 would be liberal for that job. Mr. COX. Mr. Chairman, will the gen- tleman yield'' Mr. REES. I yield to the distinguished gentleman from Georgia. Mr. COX. I have examined the sched- ule prepared by the gentleman and which has been distributed pretty generally here in the House. I am wondering if the gentleman would not be willing to accept an amendment to his substitute by striking out the figure $12,500 appear- ing in line 7 on page 5, and inserting in lieu thereof $14,000? The CHAIRMAN. The time of the gentleman from Kansas has expired. Mr. REES. Mr. Chairman, I ask unanimous consent to proceed for five additional minutes. The CHAIRMAN. Is there objection to the request of the gentleman from Kansas? There was no objection. Mr. REES. Mr. Chairman, will the gentleman repeat his question? Mr. COX. Would not the gentleman consider amending his substitute by striking the figure $12,500 on page 5, line 7, and inserting in lieu thereof $14,000? In the category you deal with there you have members of the Federal Trade Commission and others holding very responsible positions and they seem to be entitled to better treatment than the gentleman has suggested in the amendment he has offered. Mr. REES. I may say to the gentle- ma4 I realize there are a number of public officials who are entitled to more pay than they receive. I appreciate the gentleman's views as I respect his opin- ion with regard to other matters that come to the floor of the House for con- sideration. His amendment relates to members of various commissions. I thought an increase of $10,000 to $12,500 should under the circumstances, be fair. These are appointive positions and usual- ly extend over long periods of time. If the gentleman will submit his amend- ment in due time and the House wants to approve such increase, I will, of course, be required to submit to his proposal. Mr. Chairman, a great deal has been said on the floor of the House about get- ting better qualified people for these par- ticular jobs appointed by the President. I do not believe you will find men of much different caliber or qualifications in these positions just because you in- crease their salaries by 50 percent and 100 percent as you are doing under this legislation. It will be interesting to ob- serve, in the event this bill is approved, whether there are changes in the ap- pointments in these positions. Men who serve in public office, which include Members of Congress, do not necessarily serve because of the salary they receive. Of course, they are en- titled to sufficient salary to carry on, but they do not expect to make money out of such service. There are those who will tell you about certain individuals here and there who have served the Gov- ernment faithfully and well and go out in industry and do better. I agree with that, but they accepted such positions because they wanted to serve their Gov- ernment, and their country; otherwise they would not have been in Government at all. For instance, we read in the newspapers about one man who served in the President's Cabinet who could have commanded a much higher salary on the outside, but he stayed on the job in devotion to his duty. You cannot pay salaries to attract people like that to these jobs. There are many men who secure appointments not because pf their particular qualifications. Too many are appointed because of political affiliation and by reason of service rendered to the party and contributions made to the par- ty, rather than because they are par- ticularly qualified for the jobs. In other words, political service comes first and qualifications second. Do not misun- derstand me. This is not true in all cases, but in far too many. It would be interesting if you would take the time to look the list over and see how many are included in this bill who are appoint- ed because of the reasons I have indi- cated. I want to call your attention to one big factor in connection with this bill. After you have raised the salaries, as proposed in this bill, you are going to be confronted with additional bills that will raise salaries clear across the board and which will amount to not millions but to as much as $2,500,000,000. I make this statement for the reason that in approving this legislation you are, as a matter of policy, approving much higher salaries for thousands of employees who now receive a $10,000 salary ceiling. As a matter of fact, there are thousands of faithful career em- ployees who are just as much and even more entitled to such increases than those included in this special legislation for a selected few you are considering this afternoon. Again let me repeat these are not career employees. Mr. Chairman, much has been said about the recommendations of the Hoo- ver Commission. In this particular case the Commission did recommend higher pay in policy-making positions, but cer- tainly did not recommend these figures. But more important, I am sure, it was the intent of the Commission in making such recommendations that those em- ployed would be appointed because of their particular fitness for the job and that political affiliation or obligation would be secondary. Mr. MURRAY of Tennessee. Mr. Chairman, I rise in opposition to the amendment. Mr. Chairman, I hope the Members will vote this substitute amendment down. Your Committee on Post Office and Civil Service gave long deliberation to this bill. It is a compromise bill. This bill was introduced at the opening of Congress, and the Committee on Post Office and Civil Service did not reach a conclusion on the bill until March. So they had it under consideration for over 2 months. We had extensive hearings. We went into the matter most thoroughly and carefully, and, as I said, every position in the bill as originally introduced was lowered in salary except the salaries of the members of the Cabinet. We lowered Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE the salaries of all other positions besides the Members of the Cabinet as much as $2,000 to $2,500. I hope you will stay with the commit- tee and vote this substitute down, be- cause the substitute proposed is not jus- tified by the gentleman from Kansas, who proposes to cut the,salaries of some of these officials from $17,500 to $12,500. He makes a reduction of $2,500 in the salaries of officials getting $20,000. Then he reduces the salaries of those in the $18,000 bracket to $15,000, a reduction of $3,000. Then he reduces the salaries from $17,500 to $15,000, a reduction of $2,500. Then he reduced the salaries of those listed at $16,000 in this com- promise bill to $12,500. Then he reduces the salaries of those listed at $15,000 to $12,500. I know that the Members present here have not had the time, the opportunity, or the privilege to study this matter as the members of the Committee on Post Office and Civil Service have. We have worked long on this. We have brought out a good bill. It is a fair compromise. It is not exactly what the President asked for. We reduced the amounts in some cases. But I do say this, this is a non- partisan measure; it is a bipartisan meas- ure, and the salaries proposed are in line with the salaries of a bill introduced by the Republicans over in the other body at the Eightieth Congress. So it is not in any way a partisan matter, and I appeal to the Members to vote down this substitute.. Mr. MCCORMACK; Mr. Chairman, will the gentleman yield? -. Mr. MURRAY of Tennessee. I yield to the gentleman from Massachusetts. Mr. McCORMACK. The argument advanced by the gentleman from Ten- nessee, I trust, will commend itself to the Members of the House. The Com- mittee on Post Office and Civil Service has given this matter very serious con- sideration. The bill before us now is a compromise bill, reducing, outside of the members of the Cabinet, the amounts recommended and sought for by the President. Now, if the substitutt"is de- feated, then, on particular positions- such as the Director of the Federal Bu- reau of Investigation-an amendment can be offered to the committee amend- ment which will be pending before the House, and the few inequities that might exist in the minds of some Members can be clarified through such an amendment offered from the floor. I join with the chairman of the committee in expressing the hope and urging that the substitute offered in good faith, as it always is by the gentleman from Kansas, will be re- jected. Mr. MURRAY of Tennessee. I thank the gentleman from Massachusetts. Mr. LYLE. Mr. Chairman, will the gentleman yield? Mr. MURRAY of Tennessee. I yield to the gentleman from Texas. Mr. LYLE. I am impressed with the fact that this is not a salary-increase bill. I think, for the first time in the history of this country, your committee has studied the jobs affected and the work that they do and the responsibili- ti3s, and have set such salaries commen- surate, so much as they could, with the work and not with the personalities in- volved. As I understand, it is not a sal- ary increase for the people concerned that is involved, ,it is a reclassification of the positions, with the salaries being changed so as to be more nearly in ac- cord with the responsibilities of those positions. Mr. COX. Mr. Cl*Ddrman, will the gentleman yield? Mr. MURRAY of Tennessee. I yield to the gentleman from Georgia. Mr. COX. I have no quarrel with the position taken by the gentleman from Kansas, but I do wish. to make this ob- servation. The gentleman will be able to get the same consideration on the committee bill that he could get if his substitute were adopted. In other words, I cannot see the importance of the adoption of the gentleman's substi- tute in order to get ' onsideration for the changes he desire . Mr. MILLER of California. Mr. Chairman, I move to strike out the last word. Mr. Chairman, a great deal has been said about timing in this bill and a great deal has been said about compromises. The bill us it now stands is a compro- mise. ' The original bill as introduced by me called for salaries of $17,500 for those positions which are fixed in the bill at $15,000. In the spirit of compromise in the committee, I accepted that. We fought that all out, and I thought that we were through. May I read what Mr. Hoover had. to say in connection with the original Flan- ders bill, from which the original bill, H. R. 1639, was taken. Appearing be- fore the Flanders committee he said in part: I have seen the question raised that this means a vast increase in the expenditures of the Government and the advocacy of such a measure on the part of such a commission as the Commission on Reorganization is a contradiction of its purpose-reduction of expenditures. As the Commission has recommended it, it somewhat conflicts with the idea of reduc- ing expenses; but, as a matter of fact, there is no greater economy in the Government than the attraction of greater ability and greater skill. That is what this 'proposes. Let me reiterate what I have said before. The Hoover Commission has recommended in Appendix A of the Task Force Report that grades CAF-15 and P-8 be set at $15,000. Those are merit service jobs. These are the civil service jobs. It is said the level should be raised to $15,000, and this bill places the assistant secre- taries, who will supervise these high- ranking Government officials, at the same level that that it is proposed to pay them. I submit it is not good business, if we are going to carry out the Hoover Commission report, to pay civil-service employees $15,000 a year, and pay the executives who will administer and 'di- rect those people, $14,000 a year, or $12,- 500 a year. Verily, I say to you this is penny-wise and pound-foolish. We have hard this argument about the salaries of Members of Congress, and that they should not be paid more than that. Let us be factual. Our salaries are $16,500 a 9339 year. We-pay ourselves $12,500, and we take $2,500 in non-taxable expenses. If you figure it out, it comes very dose to $16,500 a year. So we would be paying the servant more than the master. But if that argument holds good, and you adopt the Rees amendment, then you are falling in the position of paying the employee, the servant, more than the master. In respect to timing, may I say I quoted that from Appendix A of the Hoover Commission Report, the very first one to be filed. I feel that the schedule of bringing this bill out, a bill wr;ch will give us the proper type and encourage the proper type of Federal employee to administer the affairs of Government, is in. good keeping and in consonance with the best- thought and recommen,?a','on of the commission for which we appropri- ated $2,000,000. . Mr. ROGERS of Florida. Mr. Chair- man, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. Rooms of Florida: On page 8, line 19, after the word "Administrator", insert "Director, Federal Bureau of Investigation." Mr. ROGERS of Florida. Mr. Chair- man, I ask unanimous consent to speak for five additional minutes. The CHAIRMAN. Is there objection to the request of the gentleman from Florida? There was no objection. Mr. ROGERS of Florida. Mr. Chair- man, the consideration of thiss bill at this particular time disturbs me some- what. There is always a time for everything. The Good Book says there is a time to mourn and a time to re- joice. There is a time to laugh and a time to cry. There is a time to do this and a time 'to do that. But I want to say to the membership of the House I doubt seriously. whether in our Na- tion's financial and economic condition at the present time we ought to increase the expenses of government. I want you to consider yourselves as directors of a great corporation. You are direc- tors of a great corporation. You repre- sent the stockholders of this great Gov- ernment of ours. You have the duty of taking care of the interests of the people and of taking care of the Government, I appeal to your business sense and judgment. If you were called together to a meeting to pass on the policy of a corporation in which you were directly interested and where your money was being expended, and if there was facing you a deficit of $1,867,000,000, and an indebtedness of $252,000,000,000, if your corporation faced the possibility of going into the red more than $5,000,000,000 for the next fiscal year, what would you do? Would you increase the salaries of the employees of that corporation? Would you do it? That is what we are doing. We are here as representatives of the people of the respective States who are stockholders in this great Government of ours. We are here expending their money. We are asking them, in face of the facts which I have related to you, to increase the salaries of the heads and assistant heads of executive departments and independent agencies of this Gov- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9340 CONGRESSIONAL RECORD-HOUSE JULY 8 ernment. Is it fair to them? Is it right? Do we know where we are going? When the President sent his letter to the committee on January 6, 1949, the picture was a great deal different than what it is now. It looked like we had to deal with the problem of inflation. But since that time where have we gone? The members of the Council of Eco- nomic Advisers do not know where we are going. Mr. Nourse says we are in a state of disinflation. One of the other members says he does not know where we are. But we do know we are in a period of declining prices and business and in a period of increasing unemploy- ment, which you may call recession, dis- inflation, or deflation. I appeal to the common sense of your best judgment as to whether or not this is the proper time for us to consider in- creasing the expenses of Government by increasing the rates of compensation as provided in H. R. 1689. I say to you we should put this off until we find where we are. There is an economic storm brew- ing. I think it is unsafe for us to go on a spending spree now, not knowing where we are going. Mr. MURRAY' of Tennessee. Mr. Chairman, will the gentlemaal} yield? Mr. ROGERS of Florida. I yield. Mr. MURRAY of Tennessee. I under- stood the gentleman to offer an amend- ment. I understood that your amend- ment would give the Director of the FBI an increase to $17,500. Mr. ROGERS of Florida. Yes. Mr. MURRAY of Tennessee. Let me ask the gentleman this question. If we agree to amend the bill In accordance with the gentleman's amendment, will he then support the bill? Mr. ROGERS of Florida. This is the only increase in salary that appeals to me, this increase to J. Edgar Hoover. I do not think we should go overboard and ask this Congress to increase salaries $1,237,000 at this particular time. Mr. MURRAY of Tennessee. Mr. Chairman, will the gentleman yield? Mr. ROGERS of Florida. I yield. Mr. MURRAY of Tennessee. If we agree to your amendment and the amendment is adopted, will the gentle- man then support the bill? Mr. ROGERS of Florida. I say to the gentleman that, this is no time for us to launch into the expenditure of money for this program. It is not the time, because we do not know whether. we are fr going into a depression or a recession or what not. Every man included in this bill, when he took his job, knew what he was going to get at the time he took the job. You cannot increase salaries dur- ing your term of office. Now, why not let this roll along for the time being, and then later on, in 1950, we will know pos- sibly where we are going. We are float- ing somewhere. We all talk "economy, economy," but we do not practice it in a single way, in a single piece of legisla- tion that this House has enacted. This legislation should be postponed. However, should this bill pass, I think It should be amended to increase the compensation of J. Edgar Hoover. I am ceris'n you will ccc.cu,r, if you will refer to l." c 64 of the report on H. R. 1589 and read the responsibilities of the di- rector, Federal Bureau of Investigation. We raised the salaries from anywhere from $5,000 to $10,000 at one swoop, at one stroke; yet here is a man looking after the national security-he looks after your security-who has been meagerly paid all the time he has been Director of the Bureau of Investigation. The thought struck me as having merit, that his salary should be increased. I therefore prepared an amendment transferring the Director of the Bureau of Investigation from page 10 to page 8, where I place him in a class with the Public Printer. The Public Printer will get $17,500; the Librarian of Congress will get $17,500; and I feel sure that the Members of the House believe that J. Edgar Hoover should get $17,500. Let me say to your that while he is no special friend of mine I do know him and know that he has clone a splendid job for the people. If this bill is to be passed I think he should be placed in the class of those receiving $17,500. The adoption of my amendment would be a vote of confi- dence in J. Edgar Hoover and the splendid work he is doing for our Nation. The CHAIRMAN. The time of the gentleman from Florida has expired. Mr. MURRAY of Tennessee. Mr. Chairman, I move to strike out the last word. Mr. Chairman, I have no objection to the amendment offered by the gentle- man from Florida; in fact, I think it is praiseworthy. We have no more faithful or more valuable public servant In America today than the present in- cumbent of the office of Director of the Federal Bureau of Investigation, J. Edgar Hoover. The reason this office was not in- cluded in the original bill was because he was not an appointee of the Presi- dent. Mr. Hoover is appointed by the Attorney General, not by the President. For that reason that office was not in- cluded; the bill, in its original form, did not include any official not appointed by the President. I am disposed to accept the amend- ment, and I hope the gentleman from Florida will then vote for the bill. Mr. FORD. Mr. Chairman, I ask unanimous consent to extend my re- marks at this point in the RECORD. The CHAIRMAN. Is there objection to the request of the gentleman from Michigan? There was no objection. Mr. FORD. Mr. Chairman, I support the amendment of the gentleman from Florida because my examination of the bill and the committee report reveals certain inequalities that are perfectly obvious to everyone. In fact, I have an identical amendment on the Clerk's desk. The Committee on Post Office and Civil Service has made the proposed salary adjustments on the basis of duties and responsibilities, but in my estimation they have missed the boat in evaluating the position of the Director of the Fed- eral Bureau of Investigation. Let me make a concrete comparison, and I have assembled the necessary data from the committee report on this bill. Mr. Tighe Woods is the Housing Expe- diter. He has the responsibility of ad- ministering the Rent Control Act. J. Edgar Hoover is the Director of the FBI-the organization that so ably pro- tected our domestic security during the last war. Mr. Woods' present salary is $12,000 per year, while Mr. Hoover's is $14,000 annually. Under the proposed bill Mr. Woods will receive a salary of $15,000, an annual increase of $3,000, while the head of the FBI will receive only a $1,000 boost, making his salary the same as Mr. Woods'. According to the committee report Mr. Woods, as Housing Expediter, will super- vise 4,836 employees and manage a budg- et of $22,972,000 during fiscal year 1949. In contrast, J. Edgar Hoover, as head of the Federal.Bureau of Investigation, in the same period supervises 9,664 employ- ees and manages a department budget of $47,461,800. This comparison, using fig- ures from the committee reports, shows that Mr. Hoover has approximately twice as many employees in his depart- ment and handles over twice as much money during a 12-month period, yet the committee recommends the same salary for both department heads. It does not make sense and if the commit- tee has been as illogical in other specific cases I believe the bill should be returned to the committee for further study. In passing, I might add that the duties and responsibilities of Mr. Hoover, leaving aside the number of employees and ex- penditures, seem to be infinitely more Important than those performed by the Housing Expediter. Let me make another comparison. TI e_ free or or the Central Intelligence Agency holds'a position in many ways comparable to the head of the Federal Bureau of Investigation. Under the pro- posed bill the present salary of the Di- rector of the Central Intelligence Agency is $17,500 annually, an increase of $3,500 from the present salary. Since Mr. Hoover's work is equally important I firmly believe his salary should be identi- cal. This amendment will accomplish that result. The question of domestic security is of vital importance. We need the best per- sonnel obtainable to insure the protec- tion of our citizens. Mr. Hoover's record for the past 25 years is unassailable. The monetary reward proposed by my amendment, after long years of faithful and devoted service, is small compensa- tion for his invaluable contribution. Mr. CORBETT. Mr. Chairman, I move to strike out the last word. The CHAIRMAN. The gentleman from Pennsylvania is recognized. Mr. CORBETT. Mr. Chairman, I wish to call attention to the Rees substitute amendment. This amendment provides for liberal salary increases; it provides for increasing the salaries of Cabinet members to $25,000; it provides generous increases for all of the 244 individuals covered by this bill. Over all, Mr. Chairman, the Rees sub- stitute would provide $700,000 a year in annual increases. We should therefore divorce from our minds the thought that this is a bill which does not increase salaries, for there are $700,090 worth of increases in the Rees substitute bill. As Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE was pointed out during general debate, it is always easy to increase salaries; it is almost impossible to decrease them. As the gentleman from Florida, who preceded me, stated, this country is demanding economy from this Congress. In the days just ahead we are going to have an increasing avalanche of mail and public insistence that we cut the cost of Government. But here it is proposed that we grant increases up to 100 per- cent, according to the original bill. I say now, as I did before, there is no sharp controversy as to whether or not there should be increases but there is contro- versy as to what is a reasonable increase. Mr. Chairman, I am going to urge the committee to support the Rees substitute, support it as a generous. salary increase for executive officials, support it as a step toward improving the efficiency of the Government. And because the Rees substitute is justified is no reason why you should continue these increases up and up. You can accept the argument that a salary increase is. In order but that does not mean that you have to jump some individuals $10,000 a year. With the economic condition of the country as it is today, it would be, in my opinion, a very bad thing for us individ- ually to send word out to the country, to the growing ranks of unemployed, that we upped the salaries of Government officials as much as $10,000 a year. Mr. Chairman, I hope the Rees amend- ment will be accepted. In years to come if we find it necessary and desirable we can provide further increases. The CHAIRMAN. The time of the gentleman from Pennsylvania has expired. Mr. MURRAY of Tennessee. Mr. Chairman, I ask unanimous consent that all debate on the substitute amendment offered by the gentleman from Kansas [Mr. REES], and all amendments thereto, close in 20 minutes. Mr. CASE of South Dakota. Mr. Chairman, I wonder if the gentleman will not extend that. There are a great many Members on their feet. The Rees substitute is the most orderly amendment that has been offered. . Mr. MURRAY of Tennessee. This will not close time on amendments to the committee bill itself, just on the sub- stitute. Mr. CASE of South Dakota. I recog- nize that is true, but the gentleman from Kansas has worked out an orderly and systematic approach to amending the bill. Mr. Chairman, I object. Mr. MURRAY of Tennessee. Mr. Chairman,.I move that all debate on the substitute amendment and all amend- ments thereto close in 30 minutes, The motion was agreed to. The CHAIRMAN. The Chair recog- nizes the gentleman from Iowa [Mr. JENSEN]. Mr. JENSEN. Mr. Chairman, I am sure that every good American in and out of Congress recognizes and appreci- ates the great job that J. Edgar Hoover has done in peacetime and in wartime, and every day and many nights. For that reason I certainly feel, as do many Members of this House, and'I am sure I bespeak the feelings of the overwhelm- ing majority of the American people, that the salary of J. Edgar Hoover should be commensurate with the great responsi- bility and the great risk and the wonder- ful job he has done. I would like to ask the gentleman from Kansas if he will not accept an amendment to his substitute providing that the Chief of the Federal Bureau of Investigation be raised to $17,500. Mr. REES. Mr, Chairman, I will say to the gentleman that if he will offer an amendment increasing the salary of the Chief of the Federal Bureau.of In- vestigation to $17,500, there will be no objection to it. It was not included in this substitute because the original bill provided only $15,000, and I was trying to keep in line with that bill. So, if the gentleman will offer such an amendment I will accept it, so far as being the author of the substitute is concerned. Mr. JENSEN. Mr. Chairman, I ask unanimous consent that the amendment which I have just suggested be considered as a part. of the Rees substitute and be adopted. Mr. MURRAY of Tennessee. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. MURRAY of Tennessee. Mr. Chairman, was not the amendment offer- ed by the gentleman from Florida [Mr. ROGERS], which, in effect, increased the salary of the FBI director to $17,500 an amendment to the original committee amendment, or was it an amendment to .the substitute offered by the gentleman from Kansas? The CHAIRMAN. The gentleman from Florida offered his amendment as an amendment to the committee amend- ment. Mr. MURRAY of Tennessee. And that has been adopted and is a part of the committee amendment? The CHAIRMAN. The amendment has not been voted upon. No amendment has been voted upon. There is pending before the Committee the committee amendment and a substitute, and the amendment offered by the gentleman from Florida. Does the gentleman from Iowa desire to offer his amendment now? Mr. JENSEN. I offer this amendment to the Rees substitute to increase the salary of the Chief of the Federal Bureau of Investigation to $17,500. The CHAIRMAN. Will the gentleman reduce his amendment to writing and send it to the desk? Mr. CASE of South Dakota. Mr, Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. CASE of South Dakota. Would it be in order to propound a unanimous- consent request that both the committee amendment and the Rees substitute be modified to place the Director of the Federal Bureau of Investigation in the class receiving $17,500, in accord with both of the amendments that have been proposed? The CHAIRMAN. The gentleman may submit such a unanimous-consent request, but the Chair would like to sug; 9341 gest that in the opinion of the Chair it would be better parliamentary procedure to submit the amendment in writing. Mr. CASE of South Dakota. This was simply a unanimous-consent request that both the committee amendment and the Rees substitute be modified to place the Director of the Federal Bureau of Inves- tigation in the $17,500 category. The CHAIRMAN. Is there objection to the request of the gentleman from South Dakota? Mr. MURRAY of Tennessee. I object, Mr. Chairman. The CHAIRMAN. The Chair recog- nizes the gentlewoman from New York [Mrs. ST. GEORGE]. Mrs. ST. GEORGE. Mr. Chairman, I rise in support of the Rees substitute amendment. Mr. Chairman, it has been well said on the floor of this House today that in the Committee on Post Office and Civil Service there is little partisanship, -and that is true. That is a good thing. There is also a spirit of compromise. I feel that this amendment is offered in a spirit of compromise. Some of us are alarmed at the trend toward greater ex- pense at this time in our country's finan- ces. I am one of them. I have grave misgivings as to how this kind of legis- lation is going to strike many of the people back home who have been wait- ing impatiently and longingly for some economy. This amendment offered by the gen- tleman from Kansas does cut the amount down a little bit. Of course, the. total amount,is negligible when we arethink- ing.in terms of billions, but we have to make a start somewhere. Personally I would prefer not to see the Under Secre- taries or the Assistant Secretaries paid more than the Members of Congress of the United States. However, if this is the best compromise that can be made, and I am sure the distinguished gentleman from Kansas has explored every possi- bility, I hope the House will vote for this substitute amendment. [Mr. BUCKLEY of Illinois addressed the Committee. His remarks will appear hereafter in the Appendix.] The CHAIRMAN. The Chair recog- nizes the gentleman -from California [Mr. PHILLIPS]. Mr. PHILLIPS of California. Mr. Chairman, I shall vote for the Rees amendment. I think the amendments increasing the Director of the FBI, offered by the gentleman from Florida and the gentleman from Iowa, respec- tively, are good, but I rise to ask a ques- tion of my colleague, the gentleman from California [Mr. MILLER], or of any mem- ber of the committee. Rather than have my time run out before the question is answered, I want to say that upon this question I base my reason for offering a motion to recommit, if the committee it- self does not offer one. The gentleman who spoke for the committee said this had been carefully considered, and that the gradations between salaries in the bill had been carefully considered. I want to find out, and I think the House is en- titled to know, Mr. Chairman, why an .Approved For Release 2000/08/11 : C1A-RDP57-00384R00100009a014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9342 CONGRESSIONAL RECORD-HOUSE JULY 8 Under Secretary of; shall we say, the De- partment of Commerce, is entitled to more money than the Administrator of the Veterans' Administration, or is en- titled to more than the head of the Re- construction Finance Corporation, which is one of the largest financial institu- tions in the world; or is entitled to more money than the chairman of the Atomic Energy Commission, who is recognized as holding one of the most difficult, strenuous, and responsible jobs in the Federal Government. What is there about the under secretaryship of the Department of Commerce, or the De- partment of Agriculture, or the Depart- ment of Labor, or any other department, which is worth $4,000 a year more than the chairmanship of the Reconstruction Finance Corporation? Since the committee is on record as saying that was carefully considered, I feel we should have the answer. Again I say, Mr. Chairman? this is the reason, if the committee does not offer a motion to recommit, I shall offer a motion to re- commit in order to reconcile these salaries. The CHAIRMAN. The Chair recog- nizes the gentleman from Illinois [Mr. PRICE]. Mr. PRICE. Mr. Chairman, I desire to speak briefly on the pending measure, H. R. 1689, increasing rates of compensa- tion of the heads and assistant heads of executive departments and. independent agencies. In the committee report it is stated that "failure to take action on this measure on the grounds that the annual appropriation of a, little more than a million dollars is too exorbitant will be 'penny wise and pound foolish'." I endorse this statement wholeheartedly. As a member of the Armed Services Committee, I have had the opportunity to observe the varied activities of the largest component in our Government, which itself is the largest single enter- prise in the world, the National Military Establishment. The National Military Establishment is presently the employer of over 2,500,000 military and civilian employees and will. have an annual ex- penditure estimated at $13,1300,000,000 for the current fiscal year. The Navy, by itself, represents capital investments, ex- penditures, personnel, plants, and opera- tions almost three times the size of the United States Steel Corp. Torun such a huge establishment we now pay 20 top officials a total of $230,000 a year-an average salary of $11,500. Compared to salaries paid to officials in even the smaller corporations in private business, this is a ridiculously low average, If we really want to effect economies in the operation of the Government, it is apparent that one of the best opportu- nities would be in the Military Estab- lishment. Such economy, however, is not going to come about automatically- it is going to have to be done by hard work on the part of competent people. Until compensation commensurate with responsibilities involved can be offered, it is most difficult to obtain and retain competent officials who can put into effect the sort of constructive recom- mendations for economy made by the Commission on organization of the Ex- ecutive Branch of the Government. If we are going to expect real economies now being discussed incident to the con- sideration of the measure to amend the National Security Act of 1947, we must provide the Military Establishment the means for doing a top-flight manage- ment ,job. Due to my ifamiliarity with the Military Establishment, I have emphasized this phase of the problem, but I am sure the same is true in all Government agencies. Again I want to stress that this measure is really an economy measure that should return many, many times its cost in in- creased efficiency and economy through intelligent, Competent management of our complex Government structure. I support this measure as a means whereby the President will have better opportunities to secure the competent officials required to run the many import- ant functions of our Government. In these days of cold wars, we are all very much aware of the work being done by the National Military Estab- lishment in supporting the domestic and foreign policies of our Government. The Berlin airlifts probably the best known example of this.support. Let us reflect a moment on the situa- tion with which the President is now faced in securing competent officials to runs this -establishment-officials who every day must make decisions and take actions that will directly affect the lives of those present and of our children and of our children's children for years and years to corrie. Officials on whose judg- ment we must depend to a large extent to keep us out of war by providing the means whereby there can be no doubt in the minds of possible aggressor nations that we have the ability to defend our- selves. The Secretary of Defense who is the person primarily responsible for all mat- ters relating to the security of this Na- tion, on whose shoulders falls the tre- mendous burden of operating the M'li.- tary Establishment of over 2,500;000 military and civilian employees, whose every action and every decision might well mean the difference between life and death for our sons and grandsons- yes, and for us, too, since in any future war there will be no lines of battle and the civilian population will be in the bat- tle area, too-for this tremendously im- portant position we pay $15,000 a year. The Secretaries of the Army, the Navy, and the Air Force with responsibility for running establishments many times larger than our biggest corporations also receive only $15,000 a year. The man re- sponsible for managing the financial af- fairs-involving approximately $14,000,- 000,000 for the current year-of the National Military Establishment receives only $10,0010, a year. Other officials with similar responsibilities receive similar small salaries. I, for one, say that we should pass this measure without hesitation. If the ad- ditional expenditure of a little over a mil- lion dollars a year will assist in any way in assuring that the best possible men are obtained in these positions of respon- sibility so fateful for all of us, we would indeed be derelict in our duty if we de- nied this possibility. Mr. Chairman, I ask unanimous con- sent that the balance of my time may be granted to the gentleman from Cali- fornia [Mr. HOLIFIELD]. The CHAIRMAN. Is there objection to the request of the gentleman from Illinois? There was no objection. Mr. HOLIFIELD. Mr. Chairman, about 2 years ago we formed what is known as the Hoover Commission. They appointed a Personnel Policy Committee to consider this question of govern- mental salaries in the executive branches. Among the people who were on that Personnel Committee were men like Mr. John' Stevenson, president of the Penn Mutual Life Insurance Co.; Mr. Lawrence Apley, former vice presi- dent of Montgomery Ward; Senator Harry Byrd, of Virginia; Franklin D'Olier, former president of the Pru- dential Life Insurance Co. of America; Robert Ramspeck, a former Member of Congress, and chairman of the House Committee on Civil Service; A. W. Rob- ertson, chairman of the board of West- ern Electric Co.; and various other fa- mous men from industry, science, and the professions. They made a complete tasks report study of the salaries and personnel con- ditions of the men in key positions in the executive branch. Now, what did they say, among other things, along this line, and it is in support of the commit- tee bill that I am speaking. They said : The failure to lift the salary ceiling for top Federal positions has created serious in- equities and forced many career officials to leave the service. They said further: The gravity of this problem is demon- strated by the fact that an income of $10,- 000 is the equivalent of less than $5,200 In 1939, after allowing for increased income tax. The 'result has been made repeatedly clear by the stream of resignations from top posi- tions in the past 3 years and by the problem of attracting well-qualified individuals into positions in the top-pay brackets. One study of the earnings increase secured by 170 in- dividuals who left the Government in the year 1945 revealed the average increase ob- tained over their Government pay was 92 percent. President Truman gave special atten- tion to this problem in his address at Princeton in June 1947 when he said, and I quote: Salary limitations prevent the Government, in many instances, from securing the kind of executives required to maintain its vital ac- tivities. I want to point out that the business of the Government of the United States is the biggest business in the world. We are entitled to have men at the head of these different departments handling over 2,000,000 personnel and millions and millions of dollars who know what it is all about and who are men of caliber to do the job and do it well. No one con- tends that the Government can pay the same rate as industry pays, but at least we should establish such salaries so that we can retain good men in the jobs. The Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE 9343 record shows that they are leaving at the pay increase for the members of Con- The gentleman from Mississippi [Mr. rate of 170 key positions in 1 year. gress. I WILLIAMS] is recognized. Mr. RAYBURN. Mr. Chairman, will The Rees substitute is an orderly sub- Mr. WILLIAMS. Mr. Chairman, 1lis- the gentleman yield? stitute for the pending bill. It recog- tened with much interest to my dis- Mr. HOLIFIELD. I yield. nizes the need for a modern pay sched- tinguished Chairman a few minutes ago Mr. RAYBURN. Does. it not seem to ule in the executive branch and in the as he discussed the Rees amendment and to the gentleman from California, as a independent agencies of the Govern- compared it with the bill. I know that legislator, that the orderly way to pro- ment, but it does not make the excessive he did not intend to, but I am afraid teed here is to take up the committee jumps proposed in the committee bill. he left the impression that the Rees amendment and perfect that committee Most of the $10,000 people step up to amendment is a salary-cutting amend- amendment after voting down the sub- $12,500. Most of those who receive ment. It does, not cut the salary of a stitute? eleven or twelve thousand step up to single one of these executives; it in- Few Members have had an opportunity fifteen thousand. Those at fifteen or creases substantially the salaries of every to examine the substitute. They do not sixteen thousand go up to seventeen one of them. know whether it is fair or not. If we thousand five hundred or eighteen thou- Let us look at, this thing just a minute vote down the substitute, then anyone sand. But the Rees substitute does not and see which one provides the. reason- who wishes to offer an amendment to make the 50-, 60-, and 80-percent in- able increase in salary. For instance, the committee bill may offer it, and we creases which characterize the commit- the Assistant Comptroller General pres- can proceed, as it appears to me, in a tee's proposals. ently drawing $10,330 a year is given much more orderly fashion and do the The gentleman from Kansas has of- $18,000 under the Committee bill, an thing that ought to be done. The Presi- fered an orderly, systematic substitute, increase of approximately 80 percent, dent of the United States has never ve- and I hope you will support it. Under the Rees substitute he is given toed any increase in salary for Members The CHAIRMAN. The time of the an increase of approximately $5,000, of Congress, any increase in clerk hire, gentleman from South Dakota has ex- bringing his salary up to $15,000, or an or anything of the kind. Do you not pired. Increase of approximately 50 percent. Is think we are doing little enough for him The Chair recognizes the gentleman a 50-percent increase a reasonable in- when some of us know the distress he is from Illinois [Mr. VURSELL]. crease?' In my opinion that is the way in, trying to keep the good men that he (Mr. VURSELL asked and was given to increase salaries, increase them reas- has to carry on this reorganization work permission to revise and extend his re- onably. in the Government departments? Do marks.) There is one case of a man presently you not think we should give him prac- Mr. VURSELL.' Mr. Chairman, I have drawing $9,700 who is increased by the tically what he asks, in order that he been looking over the figures as quickly bill to $15,000; the Rees amendment cuts can conduct his office in an, orderly fash- as I could with reference to the reduc- him back to $11,000. That gives him a ion and do the job that we expect him tion of certain salaries, as covered by the nice increase, from $9,700 to $11,000, to do? Rees substitute. If I read the figures. which would appear to me to be more Mr.. HOLIFIELD. I certainly agree correctly, the Under Secretary of the reasonable than to give.him an increase with the honorable Speaker in every- Department of Labor, under the Rees to $15,000. thing he has had to say. I hope this substitute, would receive an increase Frankly, I do not see anything to the committee will vote down the Rees from $10,330 to $17,500. The Under Sec- recommendations of the committee, and amendment and then we can proceed to retary of the Department of Commerce I so expressed myself in the committee, make such perfections in the committee would receive an increase from $10,000 to except to call the bill as presented a bill as are necessary. $17,500, and so on. These are large in- bureaucratic joyride at the taxpayers' The CHAIRMAN. The time of the creases, but not nearly so large as. the expense. I hope the Rees amendment gentleman from California [Mr. HOLI- committee bill provides. will be adopted. FIELD] has expired.. We will set a bad precedent if we pass The CHAIRMAN. The time of the The Chair recognizes the gentleman this increase salary bill. If some increase gentleman from Mississippi has expired. from South Dakota [Mr. CASE]. is necessary it would seem to me that we The Chair recognizes the gentleman Mr. CASE of South Dakota. Mr. are making substantial increases if we from Minnesota [Mr. MCCARTHY]. Chairman, the frankest statement about adopt the Rees amendment. I find that Mr. McCARTHY. Mr. Chairman, the this bill that I have heard made today everyone throughout the country.is ask- gentleman from Mississippi and the gen- was the statement. made by the gentle- ing the Congress to economize; the Con- tleman from Kansas argue that you can man from New York [Mr. MULTER]. gress is saying. they cannot economize, help a man drowning some 20 feet off- The gentleman from New York called but they are going to try to persuade or shore more by throwing him a rope 15 attention to the fact that there is a bill insist upon, or compel the President to feet -long rather than by throwing one pending before this same committee to cut the cost of government; and the Pres- 10 feet long. I should like to make one give another increase in salary to Mem- ident, very justly, comes back and says or two observations: First of all, that bers of Congress. Then the gentleman that that is largely the responsibility of there is no increase proposed in this bill said: the Congress. This is a small amount to which is too high; there may be some The pending bill is a step in the right add to the cost of government, but it sets salaries proposed which are too low, some direction. a precedent that will start leaks in the ' which should be brought up. And in that connection said that con- arks all along the line. Itf would seem to the Cabinet $25 000pa year. Ge eral Mo- sideration had been promised for the me that we ought to curb it at least to tors Corp. in 1946 had 10 vice presidents- pay-raise bill for Members of Congress. the extent of holding it down to the Rees one might call it the cabinet of General My people may be a little different amendment. Motors-and, according to statistics t try. I do not know. han people in other parts of the coun- The facts are no increases of salaries available to the Legislative Reference o e theme that is running through the cannot reduce the r cost of government if Paid, cre ei received vice $1 3,775, president, the correspondence. I am getting today it is we continue to raise salaries. It is unfair of the 10 vice presidents of General Mo- that we must stop the spiraling cost of to the overburdened taxpayers who will tors received $73,100. The "cabinet" of Government. The actual dollars in this have to pay the bill. The financial con- the Montgomery Ward Corp. consisted bill are not large, but if this bill is to be dition of the Nation and the general bus- of nine members. The highest paid re- the forerunner of another salary increase mess conditions of the country do not ceived $101,700 and the lowest about for Members of Congress, then your justify these enormous raises in salaries $35,000 per year. We propose to pay hands are going to be stayed against to those in government who already en- $25,000 to members of the Cabinet of the voting for other increases here and there joy the highest salaries in government. United States. The comptroller of the all along the line. There is nothing, in We should be reducing the cost of gov- Standard Oil Co. received $40,000 a year. my judgment, that would cause greater ernment, rather than increasing as this We propose to pay the Comptroller Gen- revulsion against the Congress as an in- bill will do. eral of the United States of America stitution today, and against individual The CHAIRMAN. The time of the .$20,000. The president of the General Members thereof, than to pass another gentleman from Illinois has expired. Motors Acceptance Corp., the credit de- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 CONGRESSIONAL RECORD-HOUSE JULY 8 partment of General Motors, received $71,500 a year. We propose to pay the Chairman of the Reconstruction Finance Corporation $16,000 a year. Is that too much? The general counsel of General Motors received $101,000, according to this report. The Attorney General, ac- cording to our proposal, would get $25,000 a year. I would like to remind some of the men who have spoken here and who are horrified at an increase of $5,000 to $10,000 per year in salary that the effect of the income-tax reduction which they voted last year increased many take- home salaries $40,000 to $50,000, and more. This was the salary increase en- gineered by the gentleman from Minne- sota, whose memory is perpetuated in his absence by the picture on the wall of this Chamber. I ask the membership to vote down the Rees amendment. The CHAIRMAN. The question is on the amendment offered by the gentle- man from Florida [Mr. ROGERS] to the committee amendment. Mr. MURRAY of Tennessee. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. MURRAY' of Tennessee. Is the vote on an amendment to the committee amendment? I thought we were con- sidering the substitute and amendments thereto. The CHAIRMAN. The Chair will state the parliamentary situation. There is pending before the Committee an amendment by the committee. 'There is pending a substitute offered by the gentleman from Kansas thereto. There is also pending an amendment to the committee amendment offered by the gentleman from Florida. The parliamentary rules require that amendments to the committee amend- ment be voted upon first, then amend- ments to the substitute be voted upon. After both are perfected, then the sub- stitute amendment will be voted upon. Mr. McCORMACK. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. McCORMACK. The parliamen- tary inquiry is whether or not the amend- ment of the gentleman from Florida is the one that relates to J. Edgar Hoover? The CHAIRMAN. The Chair so understands. Mr. HINSHAW. Mr. Chairman, I ask unanimous consent that the Rogers amendment be reread. The CHAIRMAN. Is there objection to the request of the gentleman from California? There was no objection. The Clerk reread the Rogers amend- ment. The CHAIRMAN. The question is on the amendment offered by the gentleman from Florida [Mr. ROGERS] to the com- mittee amendment. The amendment to the committee amendment was agreed to. Mr. JENSEN, Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. JENSEN. On page 2, line 5, of the Itees substitute, before the period insert: "and the compensa- tion of the Director of the Federal Bureau of Federal narcotic laws. He is also the Investigation shall be $17,500." United States representative, without On page 3, line 3, strike out "the -Director compensation, to the Commission on of the Federal Bureau of Investigation." Narcotic Drugs of the United Nations The CHAIRMAN.. The question is on and actively participates in the drafting the amendment offered by the gentle- and implementation of the various con- man from Iowa [Mr. JENSEN] to the sub- ventions limiting the international traf- stitute amendment. fic in narcotic drugs to medical and The question was taken; and on a divi- scientific uses. sion (demandled by Mr. JENSEN) there Under existing law and pursuant to were-ayes 92, noes 89. the treaty obligations he closely super- So, the amendment was agreed to. vises the importation, exportation, and The CHAIRMAN. The question is on domestic distribution of narcotic drugs the substitute offered by the gentleman by over 200,000 doctors, pharmacists, from Kansas [Mr. REES]. manufacturers and wholesale dealers, to The question was taken; and on a divi- the end that these dangerous drugs shall sion (demanded by Mr. REES) there be available only for medical and scien- were-ayes 813, noes 106. tific needs and not for the perpetuation Mr. REES. Mr. Chairman, I demand of drug addiction. - tellers. The Bureau of Narcotics is recognized Tellers were ordered, and the Chair- as one of the outstanding law enforce- man appointed as tellers Mr. REES and ment agencies of the Government, as is Mr. MURRAY of Tennessee. demonstrated by the fact that while it The Committee again divided; and the has in its employ only 2 percent of the tellers reported that there were-ayes Federal law enforcement agents, it is re- 109, noes 152, sponsible for the conviction and confine- So the amendment was rejected. ment of 9 percent of the present Federal Mr. HINSHAW. Mr. Chairman, I prison population. - offer an amendment to the committee The position requires unique qualifica- amendment. - tions in view of thegreat measure of re- The Clerk :read as follows: sponsibility involved in the problems of Amendment offered by Mr. HINSHAW to the vigorous enforcement of the narcotic committee amendment: On page 10, line 22, laws and discharge of the international after "Naturalization", insert "Administrator obligations under the several narcotic of Civil Aeronautics." conventions. The salary of the position Mr. HINSHAW. Mr. Chairman, in should be commensurate with this large searching this bill to find whether or not responsibility. all of the Presidential appointees were Mr. CANFIELD. Mr. Chairman, will included, I could not find anywhere in- the gentleman yield? clusion of the Administrator of Civil Mr. VAN ZANDT. I yield. Aeronautics. This officer is an appointee Mr. CANFIELD. As a member of the of the President of the United States sub- Subcommittee on Appropriations for the ject to Senate confirmation and operates Treasury Department and one who has a very important agency of the Govern- listened to Dr. Anslinger for, the last 4 ment now under the direction of the Sec- years, I hope the gentleman's amendment retary of Commerce pursuant to a reor- is adopted. He is not only one of Amer- ganization plan of some years ago,- I be- ica's great administrators but one of the lieve 1940. finest administrators in the world. Mr. MURRAY of Tennessee. Mr. Mr. MURRAY of Tennessee. Mr. Chairman, will the gentleman yield? Chairman, will the gentleman 'yield? Mr. HINS:EHAW. ? I yield. Mr. VAN ZANDT. I yield. Mr. MURRAY of Tennessee. The - Mr. MURRAY of Tennessee. The committee has no objection to the committee will not oppose the gentle- amendment offered by the gentleman man's amendment. We have no objec?? from California. tion to it. Mr. HINSHAW. Mr. Chairman, I Mr. GROSS. Mr. Chairman, will the thank the gentleman, and I am glad gentleman yield? that he will not oppose the amendment. Mr. VAN ZANDT. I yield. The Civil Aeronautics Administrator has Mr. GROSS. I am glad the gentleman under his direction more than 17,000 per- told us what the salary is. We did not sons and an annual budget of about $100,- know about the other one when we voted 000,000. The Administrator is surely en- on it. titled to receive a salary of at least The CHAIRMAN. The question is on $15,000 per year. the amendment offered by the gentleman The CHAIRMAN. The question is on from Pennsylvania [Mr. VAN ZANDT]. the amendment to the committee amend- ment amendment offered by the gentleman from Cali- fornia. Mr. MURRAY of Tennessee. Mr. The amendment was agreed to. Chairman, I ask unanimous consent that Mr. VAN ZANDT. Mr. Chairman, I all debate on the committee amendment offer an amendment. and all amendments thereto close in 10 The Clerk: react as follows: minutes. Amendmen; offered by Mr. V,(N ZANDT to The CHAIRMAN. Is there objection the committee amendment: On line 25, page to the request of the gentleman from 10, after the words "Commissioner of Cus- Tennessee? toms" insert "Commissioner of Narcotics." Mr. SCRIVNER and Mr. COOLEY ob- Mr. VAN 2;ANDT. Mr. Chairman, the jected. Commissioner of Narcotics heads the Mr. MURRAY of Tennessee. Mr. Bureau of Narcotics of the Treasury De- Chairman, I move that all debate on the partment and is responsible for the ad- committee amendment and all amend- ministration and enforcement of the ments thereto close in 10 minutes. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE Mr. LECOMPTE. Mr. Chairman, a parliamentary inquiry. Does that mean all debate on the entire bill? The CHAIRMAN. The Chair under- stood the gentleman from Tennessee to move that all debate close in 10 minutes on the. committee amendment and all amendments thereto. . Mr. TACKETT. Mr Chairman, a par- liamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. TACKET1. How many amend- ments are there on. the Clerk's desk now? The CHAIRMAN. The Chair is ad- vised there are four amendments on the Clerk's desk. Mr. MURRAY of Tennessee. Mr. Chairman, I ask unanimous consent to modify my motion to make the debate close in 20 minutes. The CHAIRMAN. Is there objection to the request of the gentleman from Tennessee?_ Mr.. COOLEY. ? Mr. Chairman,. reserv- ing the right to object, I have an amend- ment which I desire to offer. Is it in order to offer that amendment at the present time? The CHAIRMAN. There is pending before the Committee a unanimous-con- sent request of the gentleman from Ten- nessee to revise his motion; that all de- bate on the amendment and all amend- ments thereto close in 20 minutes. Is there objection? Mr. COOLEY. Mr. Chairman, I have reserved the right to object to propound a parliamentary inquiry as to whether or not it is in order forme to offer an amendment on page 2 at this time. The CHAIRMAN. The motion of the gentleman from Tennessee [Mr. Mua- RAY]. must be disposed of first, and then it will be in order for the gentleman. from North Carolina to offer his amendment. Without objection; the request of the gentleman from Tennessee' [Mr. MuR- RAY] to amend his motion will be granted. There was no objection. The CHAIRMAN. The question is on the motion offered by the gentleman from Tennessee [Mr. MURRAY] that all debate on the committee amendment and all amendments thereto close in 20 minutes. The motion was agreed to. Mr. LECOMPTE. Mr. Chairman, a parliamentary inquiry.' The CHAIRMAN. The gentleman will state it. Mr. LECOMPTE. How much time does that allow each one, Mr. Chairman? The CHAIRMAN. Approximately one and one-third minutes. Mr. GREEN. Mr. Chairman, I ask unanimous consent to extend my remarks at'rnis.point in the RECORD. The CHAIRMAN. Is there objection to the request of the gentleman from Pennsylvania? There was no objection. Mr. GREEN. Mr. Chairman, I would like to speak briefly in behalf of the measure, H. R. 1689, which Is now before the House for consideration. This mea- sure is intended to raise the compensa- tion of the heads and assistant heads of No. 122-11 the executive departments and independ- ent agencies of the Federal Government to levels which, in the opinion of the committee, are in keeping with the duties and responsibilities borne by these offi- cials. I believe that the House, after consid- ering this measure, will agree that the proposed salary increases are fully justi- fled, in view of the grave responsible du- ties borne by the executive heads of the departments and agencies involved. In many cases, it will be the first major ad- justment of salaries for these key offi- cials since 1925, for, as the committee's report states, there has been no con- gressional revision of the salaries of most of these executive heads since that time, although recognition has been granted by the Congress to the heads of new ma- jor Federal agencies created since World War II. The most obvious cases are those of the department heads and of the Secretary of Defense.. It has been recommended that these key officials be paid at a rate of $25,000. per annum, and in view of the heavy workload of responsibility devolv- ing upon these men, I feel that the com- mittee's recommendation is fully justi- fled:. Many of the Federal departments are equal:to or far larger than-the largest comparable private business In this country, yet these Cabinet officers, for example, draw far less than the. vice president of.the smaller private corpora- tions. The Secretary of Defense heads an organization. employing a combined civilian and military staff of over 2,500,- 000. The Postmaster General heads a huge postal communications organiza- tion employing over 500,000 people, while the Director. of Aeronautical' Research of the National Advisory Committee for Aeronautics has a larger and more complex research assignnient than his alter ego in any private aircraft firm in the Nation. The departments and agencies which they head often carry on large and complex businesses, em- ploy great numbers of people, and are responsible for the proper annual expenditure of extremely large sums. It is obvious that such. positions should be filled by highly competent men, yet, during the past years, a considerable number of these experienced and com- petent executives have. been forced to leave these key Federal positions because of the inadequate salary paid. These salaries, which were fixed years ago, are unrealistic in terms of the present-day responsibilities of " these key executive posts. I feel' that, it is absolutely essential to provide incentives, in the form of suitable annual compensation, in order not only to retain in the Federal service its remaining experienced and com- petent administrators, but also to attract able and well-qualified personnel into the government to fill.these key posts. I believe that a policy of staffing these top positions with able administrators will return the additional, cost-esti- mated at approximately $1,5500,000 per annum-to the Nation many times over each year through greater efficiency and improved operation of the Federal agen- 9345 ties affected. Without competent per- sons in thesekey posts, we can expect only mediocre performance by the de- partments and agencies so staffed. The committee's recommendations on this measure are based not only on the principles of good management and effi- cient administration, but also on the fact that the responsibilities of the occu- pants of these posts have increased greatly in recent years and have placed a very heavy burden on such officials. We had a recent and. tragic illustration of the pressures and strains to which key officials can be subjected in the perform- ance of their duties. It is my belief that only the ablest and most competent personnel should be asked to carry on, as heads and assist- ant heads of executive departments and agencies, the administration of the affairs of our country. I feel that you will agree .with me that an adequate. sal- ary will provide one of the incentives which will attract such competent offi- cials into the Federal service and that it is our. responsibility to see that this is done. Mr. COOLEY. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. COOLEY: On page 11, line 2 of the Committee amendment after. the words "Farmers' Home Adminis- tration" insert the following: "Manager of the Federal Crop Insurance Corporation." . The CHAIRMAN. The gentleman from North Carolina is recognized in ,support of his amendment. Mr. COOLEY. Mr. Chairman, I hope the committee will accept this amend- ment. Mr. MURRAY of Tennessee. Mr. Chairman, the committee has no objec- tion to the amendment. The CHAIRMAN. The question is on the amendment offered by the gentle- man from North Carolina. The amendment was agreed to. Mr. SCRIVNER. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. SCRIVNER to the committee amendment: On page 11, line 18. strike out all of section 6. Mr. SCRIVNER. Mr. Chairman; I hope the committee concurs in this amendment to. strike out section 6. It does not add any particular person to, the pay roll, but it may save many dollars. This section gives arbitrary power to the President to increase the salary of the chairman or head of a board or com- mission to $18,000 per annum if he has important duties or responsibilities not imposed upon the other members of the board. There is.not a word concern- ing this section in the committee hear- ings, nor is it discussed anywhere in the report. You are going to wake up some morning shortly after this bill is passed and find unknown numbers of these peo- ple increased to $18,000 a year. Look at this chart. It shows that there are 1,819 boards, bureaus, and agencies running this Government. Each has a chairman. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9346 CONGRESSIONAL RECORD-HOUSE JULY 8 but all may not be affected by this section. Mr, MURRAY of Tennessee. Mr. Chairman, will the gentleman yield? Mr. SCRIVNER. I have only a min- ute and a half, but I yield to the chair- man, of course. Mr. MURRAY of Tennessee. The language states, "Not more than $18,000." Mr. SCRIVNER. Yes. Mr. MURRAY of Tennessee. And it Is also required that such chairmen be given additional important duties.. Mr. SCRIVNER. The gentleman knows these boards and commissions. Every one of them are going to give the chairman a little important work to do whatever "important work" may be; the gentleman knows, furthermore, that immediately that individual will be en- titled to have his pay upped to $18,000 a year. The gentleman may say that this is not a pay increase. Maybe it is not In the opinion of the members of the com- mittee, but to the taxpayers who will have to pay the bill it is a pay increase and you cannot get away from it. If the folks at home were here they would not vote for this bill, As their repre- sentative I will not support it. All it will do is freeze the present jobholders tighter in their chairs. The CHAIRMAN. The time of the gentleman from Kansas has expired. (Mr. SCRIVNER asked and was given permission to revise and extend his remarks.) The CHAIRMAN. The -question is on the amendment offered by the gentle- man from Kansas. The question was taken; and on a division (demanded by Mr. SCRIVNER) there were-ayes 93, noes 116. Mr. SCRIVNER. Mr. Chairman, I ask for tellers. Tellers were ordered, and the Chair appointed as tellers Mr. SCRIVNER and Mr. MURRAY of Tennessee. The Committee again divided; and the tellers reported there were-ayes 95, noes 115. So the amendment was rejected. The CHAIRMAN. The Chair recog- nizes the gentleman from Arkansas [Mr. TACKETT ] . Mr. TACKETT. Mr. Chairman, I of- fer an amendment. The Clerk read as follows: Amendment offered by Mr. TArxETT: Page 11, line 17, strike out the period, sub- stitute a semicolon, and insert the following language: "and effective with the commnence- ment of the Eighty-second session of Con- gress the compensation of Senators," Repre- sentatives in Congress, Delegates from the Territories, and the Re ddent Commissioner from Puerto Rico shall be at the rate of $20,000 per annum each." Strike out section 8 and insert the follow- ing-"SEC. 8. Except as otherwise provided here- in this act shall take effect on the first day of the first pay period which begins after the date of enactment of this act," Mr. CASE of South Dakota. Mr. Chairman, a point of order. The CHAIRMAN. The gentleman will state it. Mr. CASE of South Dakota. Mr. Chairman, I make the point of order that the amendment is not germane in that this is a bill to increase the rates of compensation of the heads and assist- ant heads of executive departments and independent agencies. This amendment relates to the ]legislative branch of the Government and consequently is not ger- mane to a bill applying to executive de- partments and independent agencies. Mr. MONRONEY. Mr. Chairman, I make the further point of order that this is a bill reported by the Committee on Post Office and Civil Service which does not have jurisdiction over the salaries of Members of Congress. The CHAIRMAN. Does the gentle- man from Arkansas desire to be heard on the point of order? Mr. TACKETT. Yes, Mr. Chairman. I seek to arriend section 5 (c) which reads as follows: The rate of compensation of the Legisla- tive Counsel of the House of Representatives and of the Legislative Counsel of the Senate shall be $12,000 per annum, My amendment is germane to the very subject matter that I seek to amend. The legislative, branch of Government is covered by this very bill, and I seek to amend that portion pertaining to the legislative branch of our Government. The Architect of the Capitol is also cov- ered by this bill. The CHAIRMAN. The Chair is ready to rule. This bill seeks to increase the rates of compensation of the heads and assistant heads of executive departments and independent agencies. Under the Constitution there are three. distinct branches of government. The legislative branch cannot be classed as either an executive department or an independent agency. Therefore, the Chair sustains the point of order made by the gentle- man from South Dakota. Mr. WALTER. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. WALTER: On page 8, line 13, strike out "$17,500" and insert "$16,000"; and on page 11, line 17, strike out "$12,000" and insert "$10,000". Mr. MURRAY of Tennessee. Mr. Chairman, I have no objection to the amendments. I think they are all right. The committee accepts them. The CHAIRMAN. The question is on the amendment. The amendment was agreed to. Mr. HORAN? Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. HORAN: On page 13, line 3, strike out all of section 8 and in- sert a new section as follows: "Sec. 8. This act shall take effect July 1, 1950." Mr. HORAN. Mr. Chairman, I think we have had a sample this afternoon of how the floodgates can be opened. We are setting a pattern that Is going to be difficult for the responsible Representa- tives of the people of this Nation of ours to control. My amendment simply puts off until the beginning of the next fiscal year the date of enactment of what you are working on this afternoon. I think the people of America are looking for some results from the Hoover Commis- sion's report, but this bill you are work- ing on today will put fire into the bu- reaucracy here and make it very, very difficult to reduce the cost of Govern- ment at a time wher_?we are not on very safe ground. Mr. MURRAY of Tennessee. Mr. Chairman, I rise in opposition to the amendment. Mr. Chairman, I appeal to the Mem- bers to stand by the committee and let this act take effect on the first day of the first pay period which begins after the date of enactment o [ this act. The amendment offered b$f the gentleman from Washington would defer the time of taking effect of this bill for a year, until July 1, 1950. I hope the amend- ment will be voted down. The CHAIRMAN. The question is on the amendment offered by the gentle- man from Washington [Mr. HORAN]. The question was taken; and on a di- vision (demanded by Mr. HORAN) there were-ayes 94, noes 141. So the amendment was rejected. The CHAIRMAN. The Chair recog- nizes the gentleman from Minnesota [Mr. JUDD]. Mr. JUDD. Mr. Chairman, there are provisions in this bill which doubtless seem to every person here to be unjusti- fied or inequitable. Certainly there are a good many that are not in accord with the way I would rate the relative im- portance of various positions. However, we cannot dispute that present salary rates are obsolete, and have been so for a long time. It seems to me the passage of this bill by the House even with its admitted inequities and defects and sending it to the other, body where ad- justments can be made should produce benefits to our governmental service that will far outweigh its relatively small cost. Therefore, I intend to support the bill. Take as an example, the Department of State, to illustrate the urgent neces- sity for revision of these salaries. Since World War II, the United States has assumed the leading role among the na- tions of the world. Other nations look to us for leadership in practically every field of endeavor. Notwithstanding this fact, however, our Secretary of State today receives the same salary as he did 23 years ago. Correspondingly, his prin- cipal assistants, namely, the Under Sec- retary and Assistant Secretaries, are still receiving salaries very little above what they received then. They are subject to the Civil Service Classification Act and, hence, are restricted to salary ranges applicable to the Government as a whole. In many instances, this brings about sit- uations where salaries of Assistant Sec- retaries are no higher than those of their subordinates. The fact that the present salary rates of top officials are obsolete is especially emphasized by the fact that, legislation enacted in recent years creating newly established Government organizations provides higher salaries for the heads of those agencies than are received by the old departments and agencies. For ex- ample, both the Administrator and Dep- uty Administrator of the Economic Co- operation Administration are paid more than the Secretary of State. Ten indi- viduals in the National Military Estab- lishment, each of whom is doing import- tant work, are authorized to receive a salary equivalent to that of the Secretary Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384RO01000090014-9 1949 CONGRESSIONAL: RECORD-HOUSE. of National Defense and substantially more than the Administrator of Veter- ans' Affairs. The salary scale for the Federal Government is completely dis- proportionate to the salaries paid by a number of State and municipal govern- ments. In the State of New York, for example, the attorney general and State auditor receive $20,000 annually. Simi- larly, in the field of municipal govern- ment the mayors of 12 cities of over 500,- 000 population receive between $10,000 and $25,00, annually, with a median salary of $18,000. In New York City alone eight city officials, including the mayor, receive $20,000 or more annually in salary. Six city managers of cities between 250,000 and. 500,000 population receive salaries averaging $19,000. One constantly hears the criticism, and too often it is justified, that. many Government officials are second-rate men, or even worse. That really is ,an argument for the bill, not against it, How many first-rate men can we expect to get unless we pay them something more, adequate than the levels of 10 to 25 years ago? The additional cost of this legislation, if enacted, would be only $1,237,173 an- nually. I do not know where else in our 'expenditures so little relatively, can be expected to bring as much to our Govern- ment in value received. (Mr. JUDD asked and was given per- mission to revise and extend his re- marks,) The CHAIRMAN. The Chair recog- nizes the gentleman from Iowa [Mr. LE- COMPTE]. Mr. LECOMPTE. Mr. Chairman, about a year ago the Congress increased the salaries of all Government employees in the lower brackets by $330 per year, about a dollar a day. Today, in this bill, it is proposed to increase the salaries of the folks in the higher brackets of from 25 percent to 100 percent. I feel very deeply that high salaries Is not the thing that attracts able men to public service. The opportunity to serve one's country and serve the people well is the thing that makes public service attractive to able men and women. I believe sincerely that the passage of this bill is going to let us in for a great deal of pressure to increase the salaries of all other employees of the Federal Government, and perhaps rightly so. We are not going to find the country very happy over this salary increase for the top-bracket folks at'a time when the income of the average taxpayer is shrink- ing and receipts of the Government de- clining each day. As to the suggestion for an increase in salaries of Congressmen and Senators, I am unalterably opposed to this sug- gested amendment, as I was when the reorganization bill-Public Law 601, Sev- enty-ninth Congress-was adopted, al- though there are many good provisions in this law. We were unable to obtain a yea-and-nay vote, but the RECORD shows that I stood up and was recognized by the Speaker and asked for the yeas and nays. The bill we have today starts at the wrong place. It raises the higher sal- aries and in the end will cost the tax- payers. a vast sum of money every year. I oppose the measure. 9347' (Mr. LECOMPTE asked and was given feel free to call, if necessary, the best permission to revise and extend his re- men for these jobs, and that no Ameri- marks.) can, in view of the great issues our Na- The CHAIRMAN. The Chair recog- tion faces domestically and In the world, nizes the gentleman from Ohio [Mr. arid under the new pay scale, will feel HAYS], that he has a right to reject any such . Mr. HAYS of Ohio. Mr. Chairman, I public job for which he is fitted when it offer an amendment. is offered to him. The Clerk read as follows: The CHAIRMAN. The time of the Amendment offered by Mr. HAYS of Ohio: gentleman from New York has expired. On page 10, line 1, after the word "Commis- The Chair recognizes the gentleman sion", strike out "members of the Board of from Texas [Mr. LUCAS]. Commissioners of the District of Columbia." Mr. LUCAS. Mr. Chairman, in a few [Mr. HAYS of Ohio addressed the weeks we are going to be called upon to Committee. His remarks will appear answer to our constituents as to what we hereafter in the Appendix.] have done about economy. After you The CHAIRMAN. The question is on have voted for this bill, by which you are raising the amendment offered by the gentleman Federal he salary of the Assistant from Ohio [Mr. HAYS]. FeSecurity Administrator from e question was tand on a $10,000 to $17,500, you will have to ex- The question was taken; Mr. MURRAY my. plain what you have done about econo- division Tennessee) there were-ayes 132, He is the man who ying to in- flict socialized medicine up potn this coun- noes 48. So the amendment was agreed to. The CHAIRMAN. For what purpose does the gentleman from Pennsylvania [Mr. WALTER] rise? Mr. WALTER. Mr. Chairman, I ask unanimous consent to amend line 14; on page 11, referring to the amendment that was just adopted, by striking out $15,000 and inserting $10,060, and to vacate the proceedings by which that amendment was adopted. The CHAIRMAN. Is there objection to the request of the gentleman from Pennsylvania? Mr. CASE of South Dakota. Reserv- ing the right. to object, Mr. Chairman, when the gentleman from Pennsylvania referred to the amendment adopted just a moment ago, was he referring to the amendment which struck out the mem- bers of the Board of the District of Co- lumbia or the prior amendment offered by the gentleman from Pennsylvania? Mr. WALTER. The line was not cor- rectly stated in the amendment which I offered, Mr. CASE of South Dakota. In other words, the gentleman is leaving the item for the legislative counsel as it appears in the bill and making the change in the Assistant Director for the Administrative Office of the United States Courts? Mr. WALTER. The gentleman is cor- rect. The CHAIRMAN. Is there objection to the request of the gentleman from Pennsylvania [Mr. WALTER] ? There was no objection. The CHAIRMAN. The Chair recog- nizes'the gentleman from New York [Mr. JAVITS]. Mr. JAVITS. Mr. Chairman, I take this time to express what I think must be felt by a great many Members with respect to this bill. It looks like the bill will be passed. The reason we are do- ing what we are doing is because we want to keep or get the best public officials to deal with the problems of depression or prosperity, and peace or war. I hope, we will cease to see so many of the items In the newspapers which we have been see- ing, that a particular public servant feels he must resign in order to rehabilitate his personal fortune, or that another feels he cannot accept a Government position offered because he cannot afford it financially. I hope the President will try. He has written a book about it. He is doing all he can to foist socialized medicine upon the American people. By raising his salary you are not only con- doning his activities, you are endorsing them. If you favor that kind of econ- omy, go back and explain it to your people. I certainly cannot. You are shedding crocodile tears for these fifteen- and twenty-thousand-dol- lar-a-year men and at the same time doing nothing for the worker, who is presently covered by a minimum-wage bill which provides for only 40 cents an hour. Do you think $16 a week is enough for a workingman? Do not you think it is high time some consideration be given to the man at the bottom of the economic scale? My minimum-wage bill will tie the pay of the worker to the cost-of-living index, so that he will have a constant steady income of the same value, no matter depressions or infla- tions. Until something is done for the man at the bottom of the heap, I cannot con- scientiously vote for the man at the top. I oppose this bill. The CHAIRMAN. The time of the gentleman from Texas has expired. The Chair recognizes the gentleman from Kansas [Mr. REES]. Mr. REES. Mr. Chairman, at the proper time I shall offer a motion to re- commit this bill to the Committee on Post Office and Civil Service. It contains the amendment that I offered earlier in the day and includes amendments that have been approved by this committee. It will also strike out the provision in the bill that authorizes the President at his own desire to raise the salaries of certain individuals up to $18,000. I make this explanation so that when the time comes I will not have to take extra time to explain It any further. I still think' the salaries in this bill are inequitable and are too high. In line with what the distinguished gentleman from Texas [Mr. LUCAS] just said, I believe you are going to find it a little difficult to explain to the people back home if you permit the. approval of the bill reported by the committee. The CHAIRMAN. The time of the gentleman from Kansas has expired. The Chair recognizes the gentleman from Arkansas [Mr. TACKETTl. Approved For Release 2000/08/11 : CIA-RDP57-00384RO01000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9,. 9348 CONGRESSIONAL RECORD-HOUSE JULY 8 Mr. TACKETT. Mr. Chairman and Members of the Committee of the Whole House on -the State of the Union, you well know that my record to date during-my short tenure as a Member of this House has been very conservative-in fact, the more liberal Members would consider my record as that of a reactionary; and I will admit that I have been and shall continue to be very conservative where- in the principles of democracy are in- volved. I came here with the intention of rep- resenting the masses and not to speak as a "pollyparrot" of any power contrary to what I honestly believe to be the wishes of those who have entrusted me with the duties and responsibilities of this office. Speaking in rather general terms con- cerning the economy of this democracy, I have felt that the founding fathers formulated our system of democracy upon the theory that supply and demand, with free enterprise, individual initia- tive and open competition being afforded within the ranks of capital, business, labor, and all the other Government and individual essentials would govern our economy. Even though the aforementioned the- ory exemplifies a pure democratic econ- omy, trial and experience found us fac- ing an unbalanced economy with most of the wealth of this country drifting into the hands of a few. Antitrust and anti- monopoly laws, along with other business restrictions, were enacted to assure com- petition, aid supply and demand to pro- duce a more equitable return upon in- vestments, and to assure a more equal distribution of this country's wealth. Likewise, it has been necessary to im- pose and maintain restrictions upon labor for the purpose of affording a bal- anced relationship between the employer and the employee, and in order to stabi- lize individual initiative, -free enterprise, and open competition within. the ranks of labor so as to afford supply and de- mand an opportunity to regulate the over-all economy. If democracy is to prevail, I firmly be- lieve that free competition must remain intact and allowed to operate with cap- ital and the investor who supply the com- modity as well as with the ernloyee who performs the labor, with the assistance of capital, to bring the commodity and in- vestment into existence. . Supply and demand, with individual initiative, free enterprise, and open competition being afforded, should therefore regulate our economy wherein capitalistic trusts are suppressed, and labor controlled to the extent of allowing fair relations to exist between the affected parties. Then, we must allow for necessary restrictions that will tend to bring about a wider distribu- tion of the country's wealth. Only restrictions for the purpose of producing a balanced economy are nec- essary, and we can well see that to cur- tail the efforts of business and individ- uals with restrictions and controls that remove the individual incentive to pro- gress will eventually lead to the regimen- tation of our people to such an extent that we will no longer have any reason to advance our persons or businesses. Sooner or later unless Government con- trol is brought to a minimum, every business will be, told by the Government how to operate, what prices to charge for commodities, and the manner in which the business shall be conducted. The fees of professional men and women, the specialists, and the laborers, will, under such circumstances, be eventually set by the Government, and the ability of an individual to perform services will be of little consequence. I have felt that to vote for restrictions and controls unnecessary to the balancing of our econ- omy is no less than to vote a socialistic ticket that tends to remove the funda- mental prerequisites of a democracy. I have in the past and I shall continue to oppose legislation wherein the Govern- ment is allowed to compete with private enterprise, except in cases where private enterprise cannot or has not performed the requirements. My maiden speech on the floor of this House a few days after I took my oath of office was in favor of the reorganiza- tion and coordination of the existing Federal agencies and departments, at a saving to the taxpayers rather than to bring into existence new agencies and expand those now in existence. It is dif- ficult to understand how we shall ever expect to become solvent if we are to continue the practice of employing an average of 271 new people every day the sun rises, and if we are to continue estab- lishing new agencies and expanding those in existence every time the Congress meets. I feel that every department and agency should have ample personnel to administer the affairs involved as per the demands of the people, minus Fed- eral administration of affairs that should be administered by the States. I have followed the economy move in this Con- gress, believing that this Government could be operated with the same full force and effect on behalf of the people with much less money; but, gentlemen, we all know that it is false economy to pay a person less for their services than that to which they are entitled. One never gets any more that what he pays for. It is generally believed by the public that the public officials actually receive more money for their services than is authorized by 'law. It would be difficult to convince any reasonable person that a Member of the President's Cabinet actually received in the past only $15,000 per year. No man or woman can imagine a Member of this Congress surviving the expenditures imposed upon him or her with the salary authorized by law; and it cannot be done if the respective Mem- ber actually renders the service to which his constituents are entitled. A $20,000 salary to a Member of Congress would amount to no more than seven or eight thousand dollars to a Member in his home communiity. Actually he could stay at home on $5,000 as easily as serving in Congress for $20,000. Every Member of Congress is required to have two homes-one in Washington and one within his district. His home expenses are practically as high while he is in Washington as while he is at home. It is necessary to expend more money in the performance of his duties than he is paid by the Government. Unless a Member of Congress has an outside income from a business, profes- sion, or some other source, he cannot properly serve his people with the salary now authorized by law, unless he comes here a rich man. Why, gentlemen, a Member is re- quired to run for office every 2 years, and the general public well knows that it is necessary to expend in each election at least the amount of his first year's salary. A poor man cannot even Venture to run for such public office without the finan- cial assistance of his close friends and those expecting favors. I cannot imagine that the membership of this Congress is to be made up of the rich in this great democracy of competition, which can well lead to a capitalistic government detrimental to the middle and lower classes of our country. For the member- ship of Congress to receive an adequate salary will be most beneficial to the poor and middle classes of this United States of America. Seniority plays a big role in the opera- tion of Congress. In fact, a freshman Member such as myself has little to do with the legislative machinery and actually participates only to the extent of a single vote. Other than a rich Member of Congress must look to the future general welfare of his family and cannot afford to sacrifice the required years in Congress upon the salary now being paid to gain a position with enough. seniority to be as helpful to his people as he would like. The Hoover Commission has foreseen the need for adequate salaries to public officials as a guard against the destruc- tion of democracy, as a guard against a capitalistic form of government, and as an assurance of honest administration on behalf of all the people. The CHAIRMAN. The gentleman from California [Mr. MILLER] is recog- nized. Mr. MILLER of California. Mr. Chair- man, I wish to read into the RECORD an excerpt from a statement made by Mr. Beardsley Ruml in support of the prin- ciples of this bill : If we are to have efficiency in public ex- penditure, two measures are obviously neces- sary. First, the President must have an in. creased scope of authority in the organiza- tion and reorganization of the agencies in the executive branch of the Government. And second, a higher level of compensation, as has been recommended, should be estab- lished for top Government officials in order to hold in the Federal service and to attract to the Federal service the talent that is neces- sary for efficient managerial operation of the essential services of the executive branch of the Federal Government. I wish also to read into the RECORD the following telegram in support of the bill from Eric Johnston, president of the Mo- tion Picture Association of America, Inc.: WASHINGTON, D. C., February 8, 1949. Hon. GEORGE P. MILLER, House Committee on .Post Office and Civil Service, House of Representatives: As a businessman I am happy to endorse House bill 1689 authorizing increase pay for heads of executive departments and indepen- dent agencies. Efficient administration of public business demands today payment of adequate compensation to policy directing Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE heads in the executive branch of the Govern- The bill was ordered to be engrossed ment. This will serve to attract to Govern- and read a third time, and was read the ment service the highest type of qualified third time. person and insure the retention of the ex- perienced and able public servant. Mr. REES. Mr. Speaker, I offer a ERIC JOHNSTON, motion to recommit. President, Motion Picture The SPEAKER. Is the gentleman op- Association of America, Inc. posed to the bill? In conclusion I wish to leave with you Mr. REES. I am, Mr. Speaker. the thought that when such men as The SPEAKER. The Clerk will report Beardsley Rum] and Eric Johnston sup- the motion to recommit. port legislation of this kind they do not The Clerk read as follows: do so lightly. Mr. REES moves to recommit the bill to This bill has merit and is the first step the Committee on Post Office and Civil Serv- in the reestablishing in the Government fee with Instructions to report it back forth- service the balance between the several with with the following amendment sert out all after the enacting clause clause and Insert levels of activity so essential to good the following: management and high-efficiency. "That the rate of basic compensation of gentleman from California has expired; all time has expired. Mr. MURRAY of Tennessee. Mr. Chairman, I ask unanimous consent for the consideration of a clarifying amend- ment and permission to make a very brief statement explaining the reason for it. The gentleman from Florida intro- duced an amendment changing the sal- ary of the Director of the Federal Bureau of Investigation from $15,000 to $17,500. The item appears again at page 10, line 19, "Director, Federal Bureau of Investi- gation." I would like to strike that out since the salary of.the Director of the Federal Eureau of Investigation has al- ready been increased to $17,500 by the adoption of the amendment of the gen- tleman from Florida [Mr. ROGERS]. The CHAIRMAN. Is there. objection to the request of the gentleman from Tennessee? There was no objection. Mr. MURRAY of Tennessee. Mr. Chairman, I offer the following amend- ment. The Clerk read as follows: Amendment offered by Mr. MURRAY of Tennessee: Page 10, line 19, strike out "Di- rector, Federal Bureau of Investigation." The CHAIRMAN. The question is on the amendment offered by the gentleman from Tennessee. The amendment was agreed to. The CHAIRMAN. The question re- curs on the committee amendment as amended. The committee amendment as amended was agreed to. The CHAIRMAN. Under the rule, the Committee rises. 9349 the Tennessee Valley Authority; members of the Civil Service Commission; the Chair- man of the United States Maritime Commis- sion; members of the United States Tariff Commission; the General Counsel of the Na- tional Labor Relations Board; the Architect of the Capitol; the Deputy Administrator of General Services; the Housing Expediter; the Director of the Bureau of Federal Supply; the Archivist of the United States; members of the Displaced Persons Commission; mem- bers of the Indian Claims Commission; members of the War Claims Commission; members of the Philippine War Damage Com- mission; each Assistant Secretary of an executive department (including the Fiscal Assistant Secretary of the Treasury); each Assistant Attorney General; the Assistant Solicitor General of the United States; the Counselor of the Department of State; the per annum. masters General; the Associate Federal Med- "SEC. 2. (a) The rate of basic compensation iation and Conciliation Director; the Deputy of the Comptroller General of the United Director of Central Intelligence; the Philip- States, the Chairman of the Council of Eco- pine Alien Property Administrator; the Chief nomic Advisers, the Director of the Bureau Assistant Librarian of Congress; the Deputy of the Budget, the Chairman of the National Public Printer; members (other than the Security Resources Board, the Federal Se- curity Administrator, the Administrator of Export-Import Bank of Washington; mem- Veterans' Affairs, the Administrator of Gen- bers (other than the Chairman) of the eral Services, each Under Secretary of an United States Maritime Commission; Admin- executive department, the Assistant to the istrator, Production and Marketing Adminis- Attorney General, the Solicitor General of tration; Commissioner of Internal Revenue; the United States, the Director of the Federal Director of the Bureau of Prisons; Commis- Bureau of Investigation, Director of Cen- sioner f . Public Roads; Commissioner of tral Intelligence, and the First Assistant Public ?uildings; Commissioner of Com- Postmaster General shall be $17,500 per munity Facilities; Commissioner of Immigra- annum. tion and Naturalization; Administrator, "(b) Section 105 of title 3 of the United Rural Electrification Administration; Com- States Code is amended to read as follows: missioner for Social Security; Commissioner ADMINISTRATIVE, AND 61AFT ASSISTANTS TO Service; Commissioner of Customs; Governor PRESIDENT of the Farm Credit. Administration; Chief Forester of the Forest Service; Administrator "'SEC. 105. The President is authorized to of the Farmers Home Administration; the fix the compensation of the six administra- three Special Assistants to the Secretary of tive assistants authorized to be appointed Defense; and of the Governors of Alaska, under section 106 of this title, of the Execu- Hawaii, the Virgin Islands, and the Panama tive Secretary of the National Security Coun- Canal shall be at the rate of $12,500 per an- cil, and of five other secretaries or other im- num. Notwithstanding section 30 of the act mediate staff assistants in the White House of May 24, 1924, as amended (U, S. C., title Office as follows: Two at rates not exceeding 5, sec. 152a), the salary of the Legal Adviser $16,000 per annum, three at rates not exceed- of the Department of State shall continue ing $15,000 per annum, and seven at rates to be at the rate of $10,330 per annum. not exceeding $12,000 per annum.' "(b) .The first sentence of section 603 of "(c) The first sentence of section 106 of title 28 of the United States Code (relating title 3 of the United States Code is amended t th l f o e sa ary o the Director of the Adminis- to read as follows: The President is au- trative Office of the United States Courts) is thorized to appoint not to exceed six ad- amended to read as follows: ministrative assistants and to fix their com- "'The Director shall receive a salary of pensation in accordance with section 105 of $12,500 a year.' this title.' "(c) The second sentence of section 603 "SEC. 3. The rate of basic compensation of title 28 of the United States Code (relating of. the Chairman of the Munitions Board, to the compensation of the Assistant Di- the Chairman of the Research and Develop- rector of the Administrative Office of the ment Board, the Assistant Comptroller Gen- United States Courts) is amended to read eral of the United States, the Administrator A_-- as follows: 'The Assistant Director shall re- ef General Services th ss e Ac Ji l co ng y talc l./Vlllllalttee ruse; and the Bureau of the Budget, and the Deputy the Speaker having resumed the chair, Administrator Of Veterans' Affairs, the Pub- Mr. GORE, Chairman of the Committee of lic Printer, the Librarian of Congress, the the Whole House on the State of the Administrator of Civil Aeronautics, Manager Union, reported that that Committee, of the Federal Crop Insurance Corporation, having had under consideration the bill the Commissioner of Narcotics, the Federal (H. R. 1689) to increase rates Of COM- Assistant Federal Conciliation pensation of the heads and assistant shall be $15,000 per annum. heads of executive departments and in- "SEC. 4, (a) The rate of basic compensa- dependent agencies, pursuant to House tion of the Director of Aeronautical Research Resolution 274, he reported the same of the National Advisory Committee for Aero- back to the House with an amendment nautics; members of the Civil Aeronautics adopted in the Committee of the Whole. Board; members of the Federal Communica- tion Commission; members of the Federal The SPEAKER. Under the rule, the Power Commission; members of the Federal previous question is ordered. The ques- Trade Commission; members of the Inter- tion is on the amendment. state Commerce Commission; members of the The amendment was agreed to. National Labor Relations Board; members The SPEAKER. The of the National Mediation Board; members question is on of the Railroad Retirement Board; mem- the engrossment and third reading of bers of the Securities and Exchange Commis- the bill. sion; members of the Board of Directors of "(d) The rate of compensation of the Legislative Counsel of the House of Repre- sentatives and of the Legislative Counsel of the Senate shall be $12,000 per annum. "SEC. 5. This act shall take effect on the first day of the first pay period which begins after the date of enactment of this act." Mr. McCORMACK. Mr. Speaker, I move the previous question on the motion to recommit. The previous question was ordered. The SPEAKER. The question Is on the motion to recommit. Mr. REES. Mr. Speaker, I demand the yeas and nays. The yeas and nays were refused. Mr. REES. Mr. Speaker, I ask for a division on the motion to recommit. The House divided; and there were- ayes 71, noes 165. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9350 CONGRESSIONAL RECORD-HOUSE JULY 8 So the motion to recommit was re- jected. The SPEAKER. The question is on the passage of the bill. Mr. H. CARL ANDERSEN. Mr. Speaker, onthat I demand the yeas and nays. The yeas and nays were refused. The bill was passed. A motion to reconsider was laid on the table. Mr. MURRAY of Tennessee. Mr. Speaker, I ask unanimous consent that all Members may have five legislative days to extend their remarks on the bill just passed at this point in the RECORD. The SPEAKER. Is there objection to the request of the gentleman from Ten- nessee? There was no objection. FEDERAL PAY STRUCTURE--RELIC OF THE PAST Mr. HAYS of Arkansas. Mr. Speaker, in the past quarter century, the map of the world has been redrawn. World War II has been fought and won. Atomic energy has been released. The United Nations Organization has come into being. The hope of the world for peace and prosperity has become Centered in the Government and the people of the United States of America. This kind of responsibility in the modern age in which we live calls for the most capable men our Nation can produce. And how shall we go about getting men of that caliber? By offering them salaries on a pay scale established by Congress as far back as 28 years ago? This is what we actually offer to. men expected to be leaders not only in the United States but the world. Members of the Cabinet, for example, received $15,000 per annum in 1925. They are paid precisely the same today. The Director of the Bureau of the Budget receives $10,000 today. That is the identical salary that was fixed for the position June 10, 1921-and which re- cently caused a Director of the Budget, with long and valuable experience, to re- sign in the interests of his family. Nothing in the Federal Government is quite so out-dated as the pay scales of many of its top officials. Because Government salaries for top executives are completely out of balance with industrial scales, Government agen- cies are constantly losing valuable per- sonnel. Moreover, it is extremely diffi- cult to find competent replacements for these positions. It is difficult to understand why a man who is worth $50,000 to private industry is considered to be worth only $10,000 or $15,000 to the great institution that is the Government of the United States. In- dustries with far fewer assets than some Government corporations -- industries whose functions for national health,- peace, and prosperity hardly merit men- tion in the same breath as these Govern- ment corporations--nevertheless, pay their officials holding comparable posi- tions anywhere from half again to 10 times as much as Government is author- ized to offer. Industry, wisely and rightly, has ad- justed salaries to meet changing condi- tions, increasing responsibilities, or the rising cost of living. Such procedure makes for efficiency. It holds experi- enced personnel. Government pay policy in the upper brackets has been precisely the opposite. In many agencies, the top official now re- ceives the same salary as the next three or four officials under him. In some cases, the top man actually receives a few hundred dollars less than his princi- pal assistant. It would be almost mi- raculous if this situation did not under- mine efficiency? break down confidence, and cause a much more than normal turn-over of top personnel. This is a most serious problem. The men who execute the policies of our Gov- ernment bear the weightiest responsibil- ity of any citizens of the United States. Upon their competent execution of their duties depends not only the efficiency of Government, but possibly even the peace and prosperity of the world. We dare not be satisfied with anything less than top-flight personnel. The enactment of this bill might not bring to Government the best personnel in the land, but it would surely remove one of the principal. reasons why service in the Government has become less at- tractive. There is no dearth of patriotic citizens in the United States.. But can we blame a citizen who does not feel called upon to sacrifice permanently the interests of his family upon the altar of a Govern- ment Job? Can we blame a worker for throwing in the sponge when he sees his associates and sometimes his assistants accepting better- paying jobs in private business? Can we blame even the long-time career man when he takes a second look around-because he sees every now and then some faithful, patriotic servant of the people cracking up under the fear- ful strain that these postwar days put upon all conscientious Government officials? We must have competent people in Government. To get them we must en- deavor to make our salary structure fit the needs of the times. True, Govern- ment cannot expect to match the pay scales of industry. But this is not necessary. Al[ that most Government officials ask is a salary which will place them in the same position relative to their assistants and relative to the cost of living that they occupied in the days before the war. The executive pay bill would assure them of that kind of position. It would restore confidence in the fairness of Government to its own servants. It of- fers the type of recognition that will bring forth the best in Government efficiency. Mr. KARST. Mr. Speaker, supposedly, we are considering a bill to increase the salaries of certain key executives and ad- ministrators of Federal departments and agencies. In reality we are debating the question, how great a financial sacrifice can. we ask from men of top-flight ability because they are Government servants? This bill does not pretend to pay sal- aries that match or even approach the rewards that private concerns offer men with similar talents and carrying equal responsibilities. Judged by any such standard it is common knowledge that Government salaries are pitifully inade- quate. It is common knowledge that all too often years of training and experience in Government serve only as a proving ground for well-paid fobs in private in- dustry. And this trend is increasing at the very time when Government has need of every top-flight person it can muster. Look at the duties and responsibilities these Government officials must meet. In terms of money spent, in terms of na- tional policy and national welfare, their task Is staggering. How much can we ask them to sacrifice in the public serv- ice? At best we can only limit the fi- nancial loss they inevitably take. But there is a much more serious as- pect to this problem than next year's budget or the pay of certain Govern- ment officials. It concerns the longer future and the type of executives and ad- ministrators who will be available for Government service in the years ahead. We are not legislating solely or pri- marily for the next fiscal year. We must consider how Government service will look to the :really able mem- bers of the rising generation. We can invite them to consider such a career or we can cold-shoulder them with salary scales that are pitifully inadequate. If we make the sacrifice look too great, we will lose most o` the really able people that we want and need in Government. We will lose them because they will not even consider a career in Government, much less point toward it. Moreover, we will have great difficulty in recruiting mature, able men from private life. Who will pay for that loss of talent, vision, and ability? Your constituents and mine-if we have the good fortune to remain In Congress. All of us, will foot the bill if we so underpay our Gov- ernment officials that we screen out the very ones who could serve us most effi- ciently and economically. Mr. BRYSON. Mr. Speaker, it is to be regretted that we are considering H. R. 1689 at this time. Since many of our people are insisting upon the adoption of considerable por- tions of the Hoover Commission report, surely it is untimely to add to Govern- ment expenditures rather than to reduce them. Assuming that there ara inequities in the pay of heads of Government depart- ments and agencies, we cannot afford to increase salaries and wages of said Gov- ernment officials In the face of a known growing deficit. The latest report reaching Congress reveals the fact that we are operating now with a deficit of some $2,000,000,- 000. It appears that this deficit will increase. With this acknowledged fact before us, we must reduce Government expenditures, raise taxes, or operate with a deficit. We cannot in justice to the taxpayer increase taxes with incomes on the decline. We should not operate with a deficit. The logical thing to do is to reduce Government cost. One hears little talk of economy in Congress. We have grown too accus- homed to increasing expenditures. The clamor of the taxpayers for relief is seldom heard, If ever. It is a great honor to serve our Gov- ernment in any capacity. Most every- Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 1949 CONGRESSIONAL RECORD-HOUSE one In public office must of necessity serve at a financial sacrifice. One ca- pable of successfully filling a public office could easily earn more money In private industry. The real compensation accru- ing to a public official is intangible. The satisfaction of knowing that one has had the privilege of serving his country is, and should be, adequate pay. In my judgment, unless there is a change in the attitude of those now in charge of our Government toward pub- lic expenditures the people will ultimately rebel against extravagance. On a recent trip to my district I was greatly impressed by the attitude of everyone toward economy. Let us send this measure back to com- mittee for additional study with the hope that by the time it comes up for further consideration our domestic affairs will have been improved. When the idea of increasing salaries, such as is provided for in this measure, was first presented to the Congress some 6 months ago, the financial horizon was much brighter than now. Let us hope that in the not distant future our eco- nomical affairs will improve. This is no time to add additional and unnecessary burdens to our already over- burdened taxpayers. I regret to find myself in disagreement with those who are sponsoring this legis- lation, but have no hesitancy in voting against its passage. FURTHE ESSAGE FROM THE S E A furt M= age from the S e, by Mr. Carrel% one of its clerks, Pounced that the S ate agrees to t report of the commit ee of confereno on the dis- agreeing vo s of the two Houses on the amendment of the House to the bill (S. 1070) en tied "An act to establish a national hou ng objective and the policy to be followe in the attainment thereof, to provide F deral aid to assist slum- clearance pr ects and low-rent public housing proje s initiated by local agen- cies, to provid for financial assistance by the Secreta of Agriculture for farm housing, and f other purposes." EXTENS N OF REMARKS Mr. TACKE asked and was given permission to r ise and extend the re- marks he made in Committee of the Whole today a include extraneous Mr. HART askell and was given per- mission to extend his remarks in the RECORD and inclu an article appear- Mr. ADDONIZIO ked and was given permission to exten is remarks in the RECORD and include editorial appear- ing in the New Jersey ecord. Mr. HAGEN asked d was given per- mission to extend hi remarks in the RECORD and includ a newspaper Mr. MARCANTONIOsked and was given permission to ext d his remarks in the RECORD and elude certain extracts. Mr. FEIGHAN asked Ind was given permission to extend his marks in the RECORD and include an ed orial. Mr. DAVENPORT as lied and was given permission to exten his remarks any enrolle duly passe truly T t reaues Mr. BATTLE a ked and was given per- mission to exten his remarks in the RECORD and inclu e a speech. SPECIAL 0 DER GRANTED Mr. PHILLIPS California asked and was given perms sion to address the House for 40 min es on Friday, July 22, at the conclusion f the legislative pro- gram of the day a d following any spe- cial orders hereto re entered. ADJOUR ENT OVER Mr. MCCORMA K. Mr. Speaker, I ask unanimous co sent that when the House adjourns to y it adjourn to meet, at 12 o'clock on Mo day next. The SPEAKER. Is there objection to the request. of t e gentleman from There was no obj ction. SIGNING OF ROLLED BILLS Mr. McCORMA . Mr. Speaker, I ask unanimous co sent that notwith- standing the adjou ment of the House until Monday the C erk be authorized to receive messages f in the Senate and that the Speaker b authorized to sign There was no obje tson. SENATE ENROLEE BILLS SIGNED The SPEAKER an ounced his signa- ture to enrolled bills the Senate of the following titles: S. 230. An act for the Belief of Mrs. Sonia S. 322. An act for the elief of Mrs. Ger- trude H. Westaway, legal uardian of Bobby S. 1138. An act for th relief of John W. Crumpacker, comman r, United States S. 1359. An act to repeal a provisions of the Alaska Railroad Retire nt Act of June 29, 1936, as amended, ands tions 91 to 107 of the Canal Zone Code a to extend the benefits of the Civil Service etirement Act of May 29, 1930, as amende to officers and employees to whom such rovisions are S. 1688. An act to provide r certain ad- justments on the promotion 1 t of the Medi- cal Service Corps of the Reg r Army. BILLS AND JOINT R LUTION PRESENTED TO THE PR SIDENT Mrs. NORTON, from th Committee on House Administration, r orted that that committee did on this ay present to the President, for his ap royal, bills and a joint resolution thIl House of the following titles: H. R. 20. An act to amend the t of August 1, 1947, as amended, to authors the crea- tion of 10 professional and sci tific posi- tions in the headquarters and r earch sta- tions of the National Advisory ommittee Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9351 H. R. 52. An act County, Calif.; H. R. 596. Afl~ act to confer jurisdiction John E. Parker, assigns, against H. R. 703. An upon the Unite hear, determine, the claim of Mrs oral Engineering H. R. 1009. An Central Bank, a assignee of John operating under, trade style of Oakland, Calif.; H. R. 1042. An Wong; H. R. 1116. An Fred Girdley an H. R. 1173. An H. R. 1297, An G. Patton; H. R. 1470. An estate of James H. R. 1496. An H. R. 1676. An M. Bates; H. R. 2349. An Wlodzimierz On H. R. 2785. An contributions to H. R. 2848. An Nikolaivich Volk H. R. 3017. An G. Hunter and A H. R, 3077. An Rebecca Levy; H. R. 3151. An Food, Drug, and 1938, as amended, cation of batches thereof; H. R. 3313. An estate of the late Claims to hear, determine, ent upon a certain claim of is heirs, administrators, or t conferring jurisdiction States District. Court for ict of South Carolina to nd render judgment upon teen Foxworth; for the relief of the Gen- Dry Dock Corp.; California corporation as C. Williams, an individual the fictitious name and ntral Machine Works, of , Inc.; of for the reliek of James Percy Bridgewater; t for the relief of Florence E. B. Peters; Delahanty, deceased; it for the relief of Mrs. nd of aureomycin, chlor- citracin, or any derivative H. R. 3321. An ac for the relief of Gloria Esther Diaz, Lydia elez, and Gladys Prieto; H. R. 3323. An ac for the relief of the estate of Rafael Re llo; H. R.3680. An act o authorize the Secre- tary of Agriculture o quitclaim 51/Lo acres of land in Washingt County, Miss., to the Mississippi State Col e; H. R. 3717. An act t repeal the act of July 24, 1946, relating to t Swan Island Animal F. Earl; H. R. 3812. An act for Tihe relief of Myrtle Ruth Osborne, Marion its, and Jessie A. H. R. 4252. An act to tr sfer the trawlers Alaska and Oregon from t Reconstruction Finance Corporation to the Wish and Wildlife H. R. 4373. An act for the elief of Ray G. Schneyer and Dorothy J. Sc eyer; H. R. 4559. An act for the elief of Louis H. R. 4807. An act for the lief of Robert A. Atlas; and H. J. Res. 228. Joint resoluti authorizing an appropriation for the wor of the Presi- dent's Committee on Nations Employ the Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9 9352 CONGRESSIONAL RECORD-HOUSE J ULY 8 ADJOURNMENT Mr. McCORMACK. Mr. Speaker, I move that the House do now adjourn. The motion was agreed to; accordingly (at 4 o'clock and 28 minutes p. m.) the House, under Its previous order, ad- journed until Monday, July 11, 1949, at 12 o'clock noon. EXECUTIVE COMMUNICATIONS, ETC. Under clause 2 of rule XXIV, execu- tive communications were taken from the Speaker's table and referred as follows: 744. A letter from the Secretary of De- fense transmitting a letter by the Acting Secretary of the Navy recommending the en- actment of a proposed. draft of legislation entitled "To authorize the allowance of leave credit to officers of the Army, Navy, Air Force, Marine Corps, Coast Guard, and the Reserve components thereof, who were denied such credit as the result of certain. changes In their status between September 8, 1939, and August 9, 1946"; to the Committee on Armed Services. 745. A letter from the President, Board of Commissioners, District of Columbia, trans- mitting a draft of a proposed bill entitled "To amend the District; of Columbia Teach- ers' Salary Act of :1947"; to the Committee on the District of Columbia. 746. A letter from the Secretary of Com- merce, transmitting a draft of a proposed bill entitled "To increase the number of examiners in chief in the Patent Office, and for other purposes"; to the Committee on the Judiciary. 747. A letter from the Postmaster General, transmitting a report of claims paid by the Post Office Department under the provisions of the Federal Tort Claims Act during the liscal year 1948-49; to the Committee on the Judiciary. 748. A letter from the Acting Secretary of the Interior, transmitting a draft of a pro- posed bill entitled "A bill to amend the act of August 8, 1948, relating to the payment of an- nual leave to certain officers and employees"; to the Committee on Post Office and Civil Service. 749. A letter from the Archivist of the United States, transmitting a report on rec- ords proposed for disposal and lists or sched- ules, or parts of lists or schedules, covering records proposed for disposal by certain Gov- ernment agencies; to the Committee on House Administration. REPORTS OF COMMITTEES ON PUBLIC BILLS AND R;SOLUTI:ONs Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and reference to the proper calendar, as follows Mr. WHITTINGTON: Committee on Public Works. H. R. 3071. A bill to authorize the Secretary of the Army to purchase certain property in Morgan County; with an amend- ment (Rept. No. 1000). Referred to the Com- mittee of the Whole House on the State of the Union. Mr. WI3ITTINGTON: Committee on Public Works. H. R. 3197. A bill relating to the sale of the old Louisville Marine Hospital, Jeffer- son County, Ky.; with an amendment (Rept. No. 1001). Referred to the Committee of the Whole House on the State of the Union. Mr. COOLEY: Committee on Agriculture. H. R. 2392. A bill to provide for the liquida- tion of the trusts under the transfer agree- ments with State rural. rehabilitation corpo- rations, and. for other purposes; with an amendment (Rept. No. 1003). Referred to the Committee of the Whole House on the State of the Union. Mr. HARRIS: Committee on Interstate and Foreign Commerce. S. 1278. An act to fix the United States share of project costs, under the Federal Airport Act, involved in installa- tion of high intensity lighting on CAA des- ignated instrument landing runways; with- out amendment (Rept. No. 1004). Referred to the Committee of the Whole House on the State of the Union. Mr. ROGERS of Florida Committee on In- terstate and Foreign Commerce. S. 1279. An act to amend the Federal Airport Act so as to provide that minimum rates of wageg need be specified only in contracts in excess of $2,000; without amendment (Rept. No. 1005). Referred to the Committee of the Whole House on the State of the Union. Mr. SULLIVAN: Committee on Interstate and Foreign Commerce. S. 1280. An act to amend the Federal Airport Act so as to limit to 10 percent any increase of the amount stated as a maximum - obligation under a grant agreement; without amendment (Rept. No. 1006). Referred to the Committee of the Whole House on the State of the Union. REPORTS OF COMMITTEES ON PRIVATE BILLS AND RESOLUTIONS Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and reference to the proper calendar, as follows: Mr. WHITTINGTON: Committee on Pub- lic Works. H. R. 5356. A bill to provide for the conveyance of land to the Norfolk County Trust Co. in Stoughton, Mass., with an amendment (Rcpt. No. 1002). Referred to the Committee of the Whole house. PUBLIC BILLS AND RESOLUTIONS Under clause 3 of rule XXII, public bills and resolutions were introduced and severally referred as follows: By Mr. I3ARTLETT: H. R. 5549. A bill relating to the exemption from payment of income tax of certain com- pensation payable to Federal employees sta- tioned in the Territories and possessions of the United States; to the Committee on Ways and Means. By Mr. C!OLMER: H. R. 5550. A bill to amend the act entitled "An act to expedite the provision of housing in connection with national defense, and for other purposes", as amended, to permit the sale of war housing to State and local hous- ing agencies; to the Committee on Banking and Currency. By Mr. FARRINGTON: H. R. 5551. A bill to authorize the President of the United States, under certain condi- tions, to appoint boards of inquiry with power to make binding recommendations with respect to labor disputes in trade be- tween the continental United States and the Territory of Hawaii, and for other purposes; to the Committee on Education and Labor. By Mr. LANE: H. R. 5552. A bill to amend the act of Au- gust 8, 1946, relating to the payment of an- nual leave to certain officers and employees; to the Committee on Post Office and Civil Service. By Mr. LODGE: H. R. 5553. A bill to authorize payments by the Administrator of Veterans' Affairs on the purchase of automobiles or other conveyances by certain disabled veterans, and for other purposes; to the Committee on Veterans' Affairs. By Mr. SADOWSKI: H. It. 5554. A bill to require the United States Civil Service Commission to establish a regional office for the State of Michigan at Detroit, Mich.; to the Committee on Post Office and Civil Service. By Mr. WOOD: H. R. 5555. A bill to repeal the act of March 31, 1949, suspending certain import taxes on copper; to the Committee on Ways and Means. By Mr. MORRIS : H. R. 5556. A bill to make available for In- dian use certain surplus property at the Wingate Ordnance Depot, N. Mex.; to the Committee on Public Lands. By Mr. GATHINGS: H. R. 5557. A bill to provide for coordina- tion of arrangements for the employment of agricultural workers admitted for temporary agricultural employment from foreign coun- tries in the Western Hemisphere, to assure that the migration of such workers will be limited to the minimum numbers required to meet domestic labor shortages and for other purposes; to the Committee on Agricul- ture. By Mr. HOFFMAN of Michigan: H. R. 5558. A-bill declaring a portion of the Paw Paw River, in the city of Benton Harbor, in the city of St. Joseph and Benton Town- ship, county of Berrien, State of Michigan, to be nonnavigable; to the Committee on Inter- state and Foreign Commerce. By Mr. BATTLE; H. R. 5559. A bill to amend the Federal Trade Commission Act with respect to the advertising of alcoholic beverages; to the Committee on Interstate and Foreign Com- merce. By Mr. BROOKS: H. R. 5560. A bill to terminate the war-tax rates on certain miscellaneous excise taxes, and for other purposes; to the Committee on Ways and Means. By Mr. CROSSER: H. R. 5561. A bill to create an independent Air Safety Board; to the Committee on In- terstate and Foreign Commerce. By Mr. DAVIES of New York: H. R. 5562. A bill to amend the Agricultural Act of 1948 and the Agricultural Adjust- ment Act of 1938, as amended, to provide price support for Angora-rabbit wool; to the Committee on Agriculture. By Mr. PRICE: H. R. 5563. A bill to amend Public Law 49, Severity-seventh Congress, for the purpose of preventing loss of life, impairment of health, and endangerment to the safety of coal mine employees; to the Committee on Education and Labor. By Mr. CELLER : H. J. Res. 295. Joint resolution to erect a memorial to the memory of Mohandas K. Gandhi; to the Committee on House Admin- istration. By Mr. LODGE: H. Con. Res. 101. Concurrent resolution re- lating to refund of premiums on national service life insurance -policies; to the Com- mittee on Veterans' Affairs. MEMORIALS Under clause 3 of rule XXII, memorials were presented and referred as follows: By the SPEAKER: Memorial of the Legis- lature of the State of California memorializ- ing the President and Congress of the United States relative to the construction of navi- gable channels on the Sacramento and Feather Rivers; to the Committee on Public Works. PRIVATE BILLS AND RESOLUTIONS Under clause I of rule XXII, private bills and resolutions were introduced and severally referred as follows: By Mr. BOLLING: H. It. 5564. A bill for the relief of Wilcox Electric Co., Inc.; to the Committee on the Judiciary. Approved For Release 2000/08/11 : CIA-RDP57-00384R001000090014-9