REPRESSION OF JEWS IN THE SOVIET UNION EXTENSION OF REMARKS OF HON. HOWARD W. ROBISON OF NEW YORK IN THE HOUSE OF REPRESENTATIVES

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• Publication Date: September 24, 1964
• Content Type: OPEN

.196.4
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CONGRESSIONAL RECORD APPENDIX A4873
tary study of the Communist strategy of
peaceful coexistence. In his examination of
this area, Mr. Allen analyzed over 500
articles, documents, and speeches of Com-
munist origin representing some 11,000
pages.
The Center for Strategic Studies, George-
town University, whose director is Adm.
Arleigh Burke, U.S. Navy, retired, former
Chief of Naval Operations and member of
the Joint Chiefs of Staff, is one of the Na-
tion's outstanding graduate research centers
engaged in the study of the multifaceted
threat posed by the international Commu-
nist movement. This committee Is privi-
leged to be able to turn to such knowledge-
able and responsible scholars in the field as
represented by Mr. Allen and other members
of the center for strategic studies.
The committee wishes to express its sin-
cere appreciation to the West Publishing Co.,
of St. Paul, Minn., which has freely provided
the printing and publishing services neces-
sary to produce this study.
Obviously, no single pamphlet-or publica-
tion will in Itself constitute an adequate an-
swer to communism. For this reason, the
committee will continue to sponsor quality
materials from responsible sources in this
complex field.
This study is informational and is not in-
tended as a policy statement of the American
Bar Association. We urge leaders of the or-
ganized bar, teachers, and civic leaders to ac-
quaint themselves with the facts contained
herein. It is the hope of this committee that
greater knowledge of the Communist threat
will be gained by all citizens, and that the
real dimensions of Communist objectives will
be more clearly undertsood in the light of
principal strategic pronouncements.
The members of this committee, and its
staff which so capably assist in this work, is
in accord with our national desire to lead a
peaceful existence in conjunction with all
nations. But we want to coexist without
surrendering for ourselves or for others the
concepts of. human dignity and the protec-
tion of individual rights under a system of
due process and the rule of law. Genuine
peace is one thing; the charade of Commu-
nist peaceful coexistence as a game of. quite
different intent.
July 1964.
MORRIS I. LEIBMAN,
Chicago, Ill., Chairman.
Standing committee on education against
communism
Members: H. Lynn Edwards, Washington,
D.C.; Egbert L. Haywood, Durham, N.C.; John
0. McKay, Jr., Miami, Fla.; Raymond W. Mil-
ler, Washington, D.C.; William C. Mott,
Washington, D.C.; Louis B. Nichols, New York
City; Mario T. Noto, Washington, D.C.; C.
Brewster Rhoads, Philadelphia, Pa.; John
Ritchie, Chicago, Ill.; and Jackson A. Wright,
Columbia, Mo.
Staff: Boudinot P. Atterbury, consulting
counsel; Frank It. Barnett, consulting pro-
gram manager; Dorothy M. Belina, secretary;
Francis J. McGuire, administrative assistant;
and Dorothy E. Nicolosi, research assistant.
PREFACE
On both sides of the Atlantic, it is now
rumored that the cold war Is obsolete, ex-
cept for the hostility of Mao Tse-tung and
his followers. Khrushchev Is pictured as a
"reformed" Bolshevik, dreading nuclear war
and seeking to lead Soviet communism away
from world revolution toward the rule of law
and middle-class affluence. From this pre-
mise, some contend that the West need not
strengthen military, economic, and psycho-
logical barriers to types of Soviet aggression
that may shortly cease to exist. It is urged,
rather, that the next order of business is to
encourage Khrushchev's "moderation" by
pressing for detente and relaxation of trade
restrictions with Russia and her satellites.
Some statesmen even argue that we should
prepare for the neutralization of central
Europe and the eventual disengagement of
American forces from the Continent. In
short, on the hypothesis of a "peaceful evolv-
ing Soviet Union," one new objective for
NATO may be to preside over its self-liquida-
tion.
Obviously, few in the West would object
to reducing defense budgets if genuine peace
were in prospect. But is it?' Or is Khru-
shchev using Pavlov and the hidden persuad-
ers to advance Lenin's unchanging goals?
Suppose that the massive "peaceful coexist-
ence" propaganda of the U.S.S.R. and its
oversea agents conceal an ambush? Suppose
that current interoffice memos of the Com-
munist chiefs and ideologs call not for a
reduction in tension but for an increase in
class warfare, subversion, and ideological
combat? Suppose Communist communiques
promise more guerrilla thrusts into the vitals
of Afro-Asia and Latin America? Suppose
that very recent Communist documents
(published after the 1963 Treaty of Moscow)
openly reveal how Moscow is again using
"peaceful coexistence" as a charade to feint
the democracies off, guard? Assuming shy
motives in the Kremlin (a not unreasonable
supposition after 44 years of broken treaties
and deceptions), who stands to benefit from
another relaxation of vigilance?
Is today's emphasis on peaceful coexistence
a new departure for the Kremlin, or is it the
repetition of a time-tested gambit for .re-
tooling world revolution from temporary po-
sitions of weakness? It is useful to appraise
Khrushchev's current tactic in the context
of history; for, seen in this framework peace
to the Communists is simply the continua-
tion of war by other means.
Marx himself believed that Communist and
capitalist states were wholly incompatible.
Marxism as official dogma still influences the
behavior of Communist elites despite the
flaws in his prophecy; and Marx taught the
inevitability of Communist triumph in the
highly developed nations of the West. In
a sense, communism deprived of its faith in
the necessary obliteration of capitalism would
be religion without belief in the certainty
of judgment and life everlasting. Marxism
must reject any genuine form of peaceful
coexistence (on anything more than the tem-
porary basis of expediency) or cease to be.
Lenin, the arch pragmatist of world revo-
lution, taught his cadres how to survive.
through concession. Confronted by hostile
bourgeois states which did not succumb to
worker uprisings in the wake of the Russian
revolution, Lenin devised the technique of
temporary and tactical "'peaceful coexist-
ence." At Brest-Litovsk, he signed a formal
treaty with Germany which allowed Mother
Russia to be dismembered. Still hoping for
a chain reaction of revolution now that the
"weakest link" had been broken, Lenin made
temporary peace with capitalism inside Rus-
sia in order to build the economic sinews of
his base.
After Lenin's death in 1924, Trotsky con-
tended that "socialism in one country"-a
thesis advanced by Stalin-violated the basic
principles of Marx and Lenin and betrayed
the world revolution.
The savage polemics that preceded Trot-
sky's exile and assassination in Mexico by
the victorious Stalin has obscured the fact
that the disputing heirs of Lenin were not
nearly so far apart as they seemed. True,
Stalin wanted to consolidate power in Russia
before risking everything on revolution else-
where; but Stalin never believed that Soviet.
"socialism" was an end in itself. More cau-
tious than the theoretical Trotsky, Stalin
wanted secure possession of the sturdiest
lever and most powerful fulcrum for the
eventual upheaval of capitalist citadels.
Therefore, he became the manager of
"planned periods of peaceful coexistence"
which enabled not only communism, but
also Stalin, to survive.
It is clear, therefore, that even for the
patient Stalin, peace was a tactic and not a
goal. It gave him time to purge his rivals
in the party. It gave him time to collectivize
the peasants. It gave him time to industri-
alize Russia. But even as Stalin led the
Soviet Union into the League of Nations, he
financed plots, subversion, and popular fronts
all over the world. The Communist "peace
movements" of the 1930's were designed pri-
marily to ensure that a weak (but develop-
ing) Soviet Union would not be crushed from
the encircling capitalist powers; they in no
way inhibited Moscow's agents from covert
operations, industrial espionage, or building
international fifth columns.
When Stalin's game with Nazi Germany
exploded in his face, he was quick to form
alliances with those hated centers of capi-
talism-England and America-whose arsen-
als could furnish him with tools of defense.
At war's end, he was prepared to exchange
token gestures of cooperation with London
and Washington for freedom to seize East-
ern Europe.
He even dissolved the Comintern in 1943
to underscore the end of Communist sub-
version abroad, an event hailed in Western
circles as the formal termination of Bolshe-
vik ambitions and a sure sign of evolution.
Somehow, the imagemakers have made the
buoyant Khrushchev seem less threatening
than the cruel Stalin. Thus, we forget how
often Western experts on Russia proved
Stalin's devotion to peace by citing his re-
luctance to risk major war and the cynical
sacrifice of foreign Communists to the in-
terests of Russian foreign policy. In retro-
spect, evaluations of Stalin's foreign policy
as peace oriented seem naive. Yet, iron-
ically, the dread hand of Stalinism was more
constrained to avoid world war than the
flexible fingers of Khrushchev, who sought
recklessly to engineer a nuclear ambush from
Cuba. (For that matter, despite the in-
flammatory words, Red China's relative re-
straint.with respect to invading the offshore
islands, Taiwan, India, and southeast Asia
shows Peiping is not much more adventur-
istic than was Moscow with its wall in Berlin.
its rocket threats over Suez, and its hidden
missiles in Cuba.) That Khrushchev, like
Stalin, often tempers an activist foreign
policy with prudent regard for the future
of Russia only underlines the essential con-
tinuity of Soviet strategy from Lenin to the
present.
Communist philosophy, consistent Soviet
behavior over four decades, and recent party
directives combine to show that peaceful co-
existence is a carefully formulated strategic
course of action designed to attain revolu-
tionary goals at minimum cost and with
minimum risk to the headquarters of the
conflict elite.
It behooves the American people, there-
fore, to.ask the question, "Cui bono?" Who
benefits, and how, from the illusion that
Khrushchev is different not only in degree
but in kind from Stalin or Mao? Or per-
haps we should ask Lenin's question, "Who
is doing what to whom?"-relevant to the
cooperation of Communists with their an-
tagonists.
CONCLUSION
Communist actions and Communist words
prove that Communist goals are unchanged.
The danger may well be greater now, in our
moment of one-sided relaxation, than in the
tense days of naked Stalinism. The "split"
between China and the U.S.S.R. may be of
benefit to freedom in the long run. In the
short run, polycentrism in the Communist
world means we are menaced by two com-
peting strategies: (1) the revolutionary vio-
lence of Chinese-oriented Communists in,
Afro-Asia and Latin America; (2) the more
sophisticated Popular Front subversion of
Russian-alined Communist factions. Mos-
cow and Peiping agree that capitalism and
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CONGRESSIONAL RECORD - APPENDIX September 24
human liberty are still the primary targets.
Both subsidize class war, ideological war,
and guerrilla war. while debating with each
other as to whether vie-are a paper tiger
or a nuclear lamb. There is no evidence,
in Communist documents or actions, that
U .S. policy can be safely based on hopes for
genuine accommodation or convergence.
Quite to the contrary, Moscow and Peiping
both assert that capitalism must be forced
to disappear from the earth. Their debate
is, "How and When?"
Nevertheless, the Communist bloc has
weaknesses: industrial, agricultural. ideolog-
Ical, and political. It is vulnerable to
economic sanctions and political warfare.
Its disregard for human dignity saps its
vitality. Communist Parties all over the
world can be embarrassed, isolated, rendered
impotent. Until there is genuine change in
the goals and techniques of Communist:
dictatorship, the United States must main-
tain a shield of invincible military deter-
rence. From behind that shield, we should;
use our own propaganda sword to quarantine,
divide, and undermine aggressive Communist
power. That no genuine change in Com-
munist alms has as yet been effected is
abundantly clear from the analysis of cur-
rent Communist documents which follows:
"As soon as we are strong enough to defeat
capitalism as a whole, we shall immediately
take it by the scruff of the neck."-Vladimir
Lenin, 1920.
"A fight is In progress between these two
systems, a life and deith combat. But 'we :
Communists want to win this struggle with
the-least losses and there is no doubt what-
soever that we shall win."-Nikita
Khrushchev, 1963.
THE STANDING COMMITTEE ON EDUCATION
AGAINST COMMUr(DSM.
EXTENSION OF REMARKS
on
HON. WALT HORAN
OF WASHINGTON
IN THE HOUSE OF t'_EPRESENTATIVES
Tuesday, Septfmber 22, 1964
Mr, HORAN. M:'. Speaker, under
leave to extend my own remarks in the
Appendix of the RECORD, I have been im-
mensely impressed with the observations
of a native South Carolinian as reported
by Marguerite Higgins In the "Point of
View" column of the September 21 Wash-
ington Evening Star.
Without entering into the difficulties
that may exist in Sc?uth Carolina polit-
ically, I feel that these expressions are
consonant with the feeling of a great
many people in our Nation. We cannot
proceed on any progl am of progress, any
program of constructive education, any
program of prosperity-which I suppose
means the elimination of poverty-with
justice coming from the streets. Riot-
ing and looting are too often the hand-
maidens of protest that graduates to
violence. We must :lave law and order:
that is commensurate with the dignity
of this great Nation that espouses free-
dom of the individual, his right to prog-
ress, his right to education and his free-
dom to achieve that of which he Is ca-
pable. Any diversio:i from this format
is, In my opinion, not In agreement with
our destiny.
The article follows :
ScuTH's Nsw STIRRINGs Aio Gof.DwATER's
]DRIVE
(By Marguerite Higgins)
GRzEiivn.Lz, 8.C. In all. fairness, Senator
GQLDWA'('ZR'S tour of the Southadded up to
nothing less than a smashing personal tri-
umph.
But riost fascinating now that It is all
over is to investigate the reasons and the
light they shed on some deep new stirrings
in this part of America.
Watcling the GOP nominee in action Im-
mediately brought to mind the great contrast
in campaign styles between President John-
son and Senator GOLDWATER.
President Johnson cries hallelujah-Sen-
ator Gol DWATER cries havoc. With the Presi-
dent, it is good tidings all the way and, glory
be, a great society just around the corner.
With Senator GOLDWATER, there are intima-
tions of doom-a nuclear gap, a morality gap,
a legality gap, a victory gap-and prediction;
that socialism is going "to git you If you
don't wi.tch out." all delivered In the matter-
of-fact tones that might be used by a teacher
describi ig how to put together and operate
a ham radio set.
FRIENDLY AUDIENCES
With Evangelist Johnson, the audiences
have been friendly, often enthuelatic, al-
though in Individual conversation they
sometimes give the impression of being more
against Senator GOLDWATER than for Presi-
dent Johnson.
But here In the Southland, in the case of
the matter-of-fact Mr. GOLDWATTER. there was
evangelism all right-not in the candidate's
manner certainly, but in the audiences
whose fervor had to be witnessed to be be-
lieved. And it is not just a speech-day thing
either.
Here in the lovely green foothills of the
Carolinas, the Republicans have been work-
ing steafily and doggedly. In the Greenville-
Spartanburg area alone, they have quad-
rupled she number of volunteer Republican
campaign workers. Crossovers from the
Democrats to the Republicans have Increased
25 percent over 1960.
VICTORY ANTICIPATED
The test of the State claims roughly the
same percentage of gain. Republican lead-
ers here point out that in 1960. Richard
Nixon, with only a-skeleton GOP organiza-
tion, loiit to John Kennedy by barely 10,OOC
votes. So the Goldwaterites think they BPI
a Repu3tiean victory in November because
they expect more Democrats to join theft
ranks, checkmating a probable Increase in
the Negro vote against Senator GOLDWATER
Who are these Carolina Goldwaterites?
They are the newly minted middle
classes---lower, middle and Upper?who arc
the South's new breed.
It is a new breed of self-made men ant
women who have turned their back on thi
mores of the decayed southern aristocracy
where charm was sometimes held to be more
Important than accomplishment and whert
an aristocratic heritage was a frequent ex-
cuse for Indolence.
- This new breed of self-made southerner
has come Into dominance because of tht
swift Industrialization of the South sine(
1945--an industrialization so new that it bat
been free of the alum-making accompani-
ment of the past.
PROGRESS IS SEEN
Integ.,ation, for example, has progressed
sufficiently in the schools so that there is e
ring of sincerity about it when a Carolintar
says: "We are not against Negro rights. We
are against the Federal Government's en-
croachment, not just in the civil rights field
but all fields."
What does this now breed want?
By and large, it in not to turn the clock
back though there are a few Federal func-
tions that the people would like to see turned
back to the individual State. In the main
the South's new middle class wants to put a
brake on the Federal Government's power.
It is a "this far and no farther" attitude.
Social security as presently organized is fine
but any drastic increase or change would be
opposed.
A SOUTHERNER SPEAKS
But where Mr. COLDWATER touches these
people most deeply is In his philosophy of
what America and Americans ought to be.
It is not easy to discover a southerner's real
feelings because he rarely puts them into
words and often is embarrassed to try and do
so with newspaper reporters who are regarded
automatically as members of the "liberal
establishment"-an establishment whose
values are viewed as at least partly respon-
sible for what's wrong with America.
As one Republican precinct worker put it:
"This country is suffering from a bad case of
double standard.
"If there Is a riot. these slick liberal wrlt-
era ooze sympathy for the 'poor rioters.'
It's not really the fault of the guy that
bashed the cop's heed in and broke the store
window and stole six television sets, or so we
are told. This poor guy just got riot happy
because he Is living In poverty, the neigh-
borhood is a slum, there is garbage in the
alley, or his mother didn't love him enough.
"None of these liberals ever say this rioter
is a bum, a criminal and lazy and no good.
"So long as the rioter is treated as a hero
and the cop is treated as a beast, the decline
of law and order is Inevitable. Nobody ever
says that tenants can be just as responsible
for creating alum conditions as the land-
lord. -
"Why don't they have a clean up and paint
up Harlem week? If they don't like garbage
in their alleys, why do they dump it there in
the first place? My family was so poor that
as a teenager I had to be up at dawn milk-
ing cows, delivering groceries, and the like.
"I could hardly watt for each day to begin.
It was a happy life and It never occurred to
me to go and start a riot because I only had
one pair of shoes every 2 years and didn't
taste Ice cream until. I was 15.
"Some 'of America's finest hours were in
the days when most of the population was
living in what the sociologists would pit-
ingly label as poverty. In those days pov-
erty was not something you started gang
warfare over or stole or rioted or killed. It
was something thzt you used grit, self-
reliance, and pride to overcome.
"Those qualities were not sneered at then.
Now they are sneered at. Pride in country
Is considered naive.
"It Is even considered naive to think that
a great power like .he United States should
have Insisted that he Soviet Union live up
to its International treaties Instead of
knuckling under as we so shamefully did
when the Berlin wall was built. The more
Central Government takes over control of the
human being's destiny, the weaker he be-
comes, along with his moral fiber and his
country's moral fiber.
"People like GOLDWATER believe in such
things as moral fiber and you Easterners can
sneer all you want. He is trying to stop the
process of decay and that is why we are for
him because we think our lives, our pride,
and our human dignity are at stake."
Repression bf Jews in the Soviet Union
EXTENSION OF REMARKS
OF
HON. HOWARD W. ROBISON
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Wednesday, September 23, 1964
Mr. ROBISON. Mr. Speaker, for
more than a dozen years, there has been
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CONGRESSIONAL RECORD -APPENDIX
increasing evidence of anti-Semitic ac-
tivity on the part of the Government of
the Soviet Union. Once prominent and
among the leaders of the professions,
sciences, and administrators of the Gov-
ernment and the Communist Party with-
in the U.S.S.R., since 1948 Soviet Jewry
has been increasingly subject to religious,
social, economic, and employment dis-
crimination.
There are estimated to be some 3 mil-
lion Jews in the Soviet Union, although
the number cannot be exactly figured be-
cause of many hundreds of leading Jew-
ish intellectuals who were imprisoned in
1948, and of whom many perished. In
fact, some two dozen of their leaders
were executed in 1952.
Although Soviet practice and, in fact,
the Soviet Constitution recognizes the
right of cultural and national groups
within the U.S.S.R. to maintain and per-
petuate their own identities, this right is
not accorded to the Jewish community-
the only minority group to which it is
denied.
Jews are forbidden schools of their
own, are not permitted classes in Yiddish
or Hebrew in the other schools, and are
denied classes in the Russian language on
Jewish culture and history. The effect,
of course, is to deny Soviet Jews any
real opportunity to perpetuate their iden-
tity and cultural values. In addition, the
Jewish religion is subjected to particular
discrimination by forbidding them to
maintain national religious organiza-
tions, by the forcible closing of syna-
gogues in many areas, and by vicious
press attacks against Jewish groups and
the few synagogues which do remain.
Because the Government controls the
press in the Soviet Union, the respon-
sibility for these attacks must be borne
by the Soviet Government. In addition,
leading officials of synagogues in Mos-
cow and Leningrad have been arrested
and imprisoned an charges of espionage.
The Soviet authorities usually claim that
these men are spying for the State of
Israel.
The severe hampering of religious ac-
tivities, and the antipathy of the author-
ities toward religious observances is, of
course, an official program of the Com-
munists and is directed against all activ-
ities which seek to worship a Supreme
Being. However, their activities against
the Jewish religion in the Soviet Union
have been much stronger and show a par-
ticular strain of hate and repression.
The proportion of Jews in universities
has declined from more than 13 percent,
30 years ago, to about 3 percent today.
Official observers believe this has been
brought about through a planned policy
of discrimination and quotas.
Thousands of Jewish families were
broken and spread over other parts of
the world as the result of the Nazi In-
vasion. Many of the refugees now live
in Israel or West "European countries
Yet the Soviet authorities have denied
permission to Jewish family members
remaining in the Soviet Union to leave
the U.S.S.R. in order to be reunited with
their families elsewhere.
Despite the full recognition of these,
and many more effects of obvious Jew-
ish repression within the U.S.S.R., the
official policy of our Department of State
has been, and continues to be, that no
official protests should be made to the
Soviet authorities. The reason given is
that such official recognition and pres-
sure on the Soviet Government by our
Government might bring about certain
repercussions and retaliation on Soviet
Jewry. Obviously, no one can predict
what reaction would take place within
the Soviet Government to an official pro-
test by our Department of State, but I do
feel that the Department's policy, while
taking cognizance of this problem, has
the effect of sweeping it under the rug.
I believe that more official recognition
should be taken of Jewish repressions in
the Soviet Union, and that more pub-
licity should be given throughout our
Nation and the world to the undeniable
facts of Jewish persecution by Commu-
nist authorities. I c,all upon the De-
partment of State and all other appro-
priate agencies of our Government, such
as the U.S. Information Agency, to in-
crease their activities in this regard, and
I strongly hope that the President will
direct them to do so.
Frank L. Auerbach
EXTENSION OF REMARKS
OF
HON. EMANUEL CELLER
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Wednesday, September 23, 1964
Mr. CELLER. Mr. Speaker, it was
with a sense of loss that I learned of
the death of Frank L. Auerbach, Deputy
Director of the Visa Office of the De-
partment of State. I had come to know
and respect greatly Mr. Auerbach. His
career bespeaks his unique talents. He
was Immigration Counsel to social agen-
cies in Germany and assistant case con-
sultant to social agencies in the United
States. He worked with the War Relo-
cation Authority of the Department of
Interior and was a lecturer of - both
Hunter College and Columbia Univer-
sity in New York City. He began his
work with the Department of State in
1948 as a consultant to the Chief of the
Visa Division and became Assistant Di-
rector of the Visa Office in 1955 and
Deputy Director in 1962.
Mr. Auerbach is the author of "Imni-
gration Laws of the United States,
"Nationality Problems of Children,"
"Principles Which Should Underlie our
Nationality Laws," "The Admission and
Resettlement of Displaced Persons in the
United States," and "The Immigration
and Nationality Act, a Summary of Its
Principal Provisions."
Mr. Auerbach's matchless knowledge
of the immigration laws, his compassion,
his dedication to his work, his unfailing
courtesies to all who sought of his time
and his talent, made him the public serv-
ant beyond reproach. His death leaves
a void in an area where there are too
few experts. He served us well and he
will not be forgotten.
I extend my deepest sympathy to his
wife and children, and to all of the mem-
bers of his family.
A4875
EXTENSION OF REMARKS
OF
HON. EDWARD HUTCHINSON
OF MICHIGAN
IN THE HOUSE OF REPRESENTATIVES
Wednesday, September 23, 1964
Mr, HUTCHINSON. Mr. Speaker, if
in these times of economic prosperity
our Government cannot balance its
budget and limit its spending within the
revenues it receives, can it ever do so?
In time of economic adversity and in
time of war, expenditures in excess of
revenues are frequently necessary. In
time of general prosperity, sound fiscal
policy requires a balanced budget with
provision for the reduction of public
debt.
At the beginning of the present Con-
gress, the Kennedy administration pre-
sented for our consideration a budget
intentionally unbalanced. On February
28, 1963, I reported to the people of the
Fourth Congressional District of Michi-
gan my concern about the new econo-
ics in the following words:
"Economic theorists close to the Pres-
ident are trying to convince the Ameri-
can people-as they have already con-
vinced the President-that the way to
an ever-expanding prosperity is to cut
the revenues, increase the spending, and
go further into debt.
"It is tragic that the power of govern-
ment has fallen into the control of those
espousing so unsound a doctrine. A
prosperity based upon debt is indeed a
house built upon sand. Debt is borrow-
ing from the future. In the future, the
debt must either be paid or repudiated.
There is no third alternative.
"In the experience of us all, debt is a
burden and a reduction of net worth.
Still, the New Frontier speaks of in-
creasing the national debt as though it
were an asset. The President refers to
`increasing the debt in ways that serve
to strengthen the debtor.'
"Such strange doctrine is a complete
reversal from the sound beliefs of
George Washington, who said: `Avoid
the accumulation of debt, not merely by
shunning occasions of expense, but by
vigorous exertions in time of peace dis-
charge the debts which unavoidable
wars may have occasioned, not ungen-
erously throwing upon posterity the bur-
dens which we ourselves ought to bear,'
"Washington's admonition was fol-
lowed in every generation until our own.
In these times of relative prosperity, we
should be reducing the national debt.
The President urges us to increase it.
He tells us that the size of the debt may
be disregarded. Let it increase, he says,
and reduce the income tax to spur what
he calls a sluggish economy.
"Now a tax cut is appealing. If we
could take home a greater portion of the
paycheck, we could purchase. more, save
more and invest more. But consider
what will be the situation if the Govern-
ment goes on spending without stint:
By reason of the tax cut, the tax reve-
nues will be reduced, so, in order to pay
for its spending, the Government will
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CONGRESSIONAL RECORD - APPENDIX September 24
have to borrow more to fill the gap be-
tween revenue coming in and spending
going out,
"If the Governmer.t borrows from the
people, it will take from them all the
increase' they thought they would have
for use in the free economy. If the Gov-
ernment borrows from the banking sys-
tem, more dollars will be issued to pay;
the Government's bills, resulting in infla-
tion. In that case, the expected increase
in take-home pay will evaporate in in-
creased prices. If taxes are reduced,
there must be a reduction in Government
spending; otherwise, there can be no
spur in the free economy.
"If our economy is sluggish, as the.
President says is the case, it is because of
the deficit-debt policy of the Govern-
ment. A government which actually
lived within its.tax Income and system
atically reduced its debt would so stimu-
late the economy that the economy would
move forward with confidence and en-
thusiasm. Then we would experience a'
sound economic expansion, producing
revenues sufficient perhaps to permit a;
tax reduction,"
Now, in 1964, as this Congress comes to
a close. it must be recorded that our na-
tional debt limit has been increased from.
$308 billion to $315 billion to $324 bil-
lion-in a 2-year period of general pros-
perity.
We are living off the future when we
ought to be living within our means;
when we ought to be reducing, not In-
creasing, the national debt.
Complexities of Police Protection Amazes:
Reporter on Patrol Duty
EXTENSION OF REMARKS
HON. EDWARD J. DERWINSKI
OF ILI INOIs
IN THE HOUSE OF IIEPRESENTATIVES
Wednesday, September 23,1964
Mr. DERWINSKI. Mr. Speaker, the
public is concerned with the problems
facing law enforcement officers. The
public is also rightfully concerned with
the disregard for law and order that is
flourishing In various parts of the coun-
try.
The Enterprise Publications, of Brook-
field, Ill., assigned its staff writer, miss
Lyn Daunoras, to c-over the police de=
partment on a typical tour of duty.
I submit her article for the RECORD as
I feel it places the problems of law en-
forcement in a very practical light and
merits our attention:
COMPLEXITIES OF POLI-cE PaoTzc ioN AMAs.EQ
REPORTER ON PATROL DUTY
(By Lyn ;3aunoras)
It was Saturday. August 29, and I had been
given approval by Police Chief Edward Bar-
cal to accompany a sq.iad car from 9 to mid-
night on Its routine patrol of the village. `
I sat in the back sect alone with Sgt. Tony
Azzarrello at the wheel and Police Com-
missioner Joe Wazny nt his side. Along with
many other residents, no doubt, I had always
assumed that police protection meant merely
answering and checking out complaints regs
istered by citizens. `
That was a very wrong assumption. Police
protection is all-embracing and fantastic In
Its thoroughness. All residents would find It
fascinating to tour with the men in blue at
they patrol and protect the village during a
shift icoking for trouble, covering bad traf-
fio intsrsectlone, checking out business
houses, alleys, schools, parking lots, homes
questioning loiterers, stopping violators the'
note wi.h a quick. observing eye, all between
investigations of complaints.
In 3 hours, there were only two calls from
the police desk to check out. The rest of the
time wea just touring, touring and checking
checking, checking. Nothing went un-
noticed A young couple sitting to a door-
way holding hands was questioned by Azzar-
reilo and when he found neither one lived it
the apartment house whose doorway the)
were utilizing, he asked them nicely to mov<
along.
Asked why, since it seemed almost a shame
to disturb them, be responded that apart-
ment tenants and landlords complain about
persons who do not live In the building+-
taking up the doorway. Sometimes, wher
tenants want to enter or leave the bulldini_
and they find couples or gangs sitting on the
doorste,, they get abusive language in re-
sponse to their request to move aside. There-
fore. complaints are lessened by gettinf
right tc the source.
Groups of teenagers are watched carefully
and the grouping is discouraged wherever
possible. Reason for this is that another
gang, cruising In a car may stop before i,
group standing arofmd a corner and sud-
denly a "rumble" erupts. On this night four'
boys crossing Prairie Avenue joined threw
others in front of the Purple Plum and the;
proceeded down Grand Boulevard.
At the same moment the first message from
the desk came through: someone had
broken the drinking fountain at Kiwaniti
Park at the base and the water was gushing
out hee.vtly_ It was possible the four cross
lag Prt,irie had come from the park amen
they ware coming from that direction. "I'
they're responsible for the destruction, they'll
be wet." Aznarrello said and drove off lit
pursuit of the group which he Intercepted
at Washington.
He stopped, talked to all of them, viewed
their itentifieatton and checked for any wet.
ness. There was none. None of the boy t
were Irons Brookfield; they were all pouts
and ccoperative. One 15-year-old had no
L.D. and Azzarrello asked him why. No rea-
son, just didn't have any, he was told.
Back in the squad. Azzarrello questioned
the wisdom of parents who allow their chil-
dren out without any type of identification.
He pointed out that a boy or girl walking
alone could be hit by a car and taken to =t
hospital where he might need an emergenc 7
operation in order to save his life. A doctor
cannot operate or even treat-a minor with-
out consent of the parents. How would the!
locate the parents of an unconscious youth
with no identification?
Around the swimming pool we went, check-
ing from every vantage point with flashligh+-.
The spotlight Is- not used because it tends
to scare off persons a block away who might
be up to malicious mischief and are thus
warner: of an approaching squad. The po -l
was deserted, as was its immediate vicinit'..
Going down Shields, Azzarrello suddenly
flashed his light on the car in front, bring-
ing that driver to a halt. As he talked to
the driver. I looked the car over carefull,,,
trying to find why he had stopped hint.
Nothing appeared out of order. So when
he said. "O$. be sure you take care of ft
now" .o the teenaged driver and got back
Into the squad car, it was our first question.
There was no light over the back licence
plate. Again he flashed his light at the dt -
parting car. "See 'that?" be asked. Then
I did, "In case of a burglary. bow could wii-
nesses take the license number? Such a
car becomes a suspicious object. I just
warned him to get a light on there." Mean-
while, he had taken the youth's name, ad-
dress and license plate number and will be
checking it out to be sure the light is there
next time. Just it precaution that could
be a lifesaver at a later date.
Then the second message came through.
Resident at 4307 Eberly Avenue reported
someone peering Into a window. Young. thin
man who ran north through the alley. In a
whisk, we tore off to Eberly Avenue from
Washington and k4cCormick. In minutes flat
we were there, going up and down the streets,
side streets and alleys, checking and flashing.
There was no one in sight. But Azzarrello
made a wide sweep around the area, taking
no chances of missing anyone afoot getting
away.
And then we went on a round ofveritable
death traps for police. There were narrow,
dark passageways where a squad car would
be at a handicap, bidden stairways, high,
flat roofs made easily accessible for those
hiding out. Azzarrello flashed his light down
one passageway leading from the alley to the
street. "See anything?" he asked. We didn't.
Then he lowered the flashlight and the side-
walk bellied in the .enter, making it an ideal
place for a person to lie flat.
A policeman unfamiliar with the gully,
would flash his light straight through, as
he had the first time, and see nothing. "Far
100-percent protection, At is absolutely essen-
tial for a policeman to be completely familiar
with every place in the village," " he said.
This, we made it mental note, was another
good argument against a metropolitan police
force. How would a policeman from Oak
Lawn or Chicago know about a gully in a cer-
tain sidewalk In -Br aokfield?
The dangers lurking in the shadows of bus-
iness houses bothered me, and I asked if
business operators were aware of the pitfalls
they presented police In the performance of
their duties. But Azzarrello wasn't com-
plaining. "I consider it a personal chal-
lenge," he smiled. "I know these trouble
spots so well by now that I feel if anything
happens to me, I deserve It for letting It
happen."
But what of the new men? There are too
many places where they'd be sitting ducks.
It's something residents should know about
because the protection at every angle given
by their police department borders on the
unbelievable. Even cobwebs on doorways
are examined because they indicate no one
has opened the door 1n, 4 hours. Periodically
the department or village hall will receive a
note of gratitude from a resident who has
had first-hand experience In utilizing the
services of the department in an emergency.
But emergencies are just a small part of
the facets of police work they do not know
about and probably will never know about.
They can only be assured that Brookfield Is
one of the best protected suburbs In the
county. The fact that only four messages
came through In 3 hours on a Saturday night
(the other two we're handled by the other
squad car under Officer Rick Gallas) proves
the point.
Of course, this was an unusually quiet
evening. The police department averages
about 7,000 complaints per year and as of
September 1, had already passed the 4,000
mark.
It was obvious that residents do nothing
to make their Jobe. easier. There were open
overhead doors on garages, just begging
burglars or delinquents to help themselves,
cars standing unattended with motors
running.
The fact that 60 miles had been put on by
Azzarrello during tits shift from 4 to 12 p.m.
and that upward to 100 miles per shift have
been put on by squad cars, just within the
limits of Brookfield. certainly proves without
doubt the vigilant, careful, thorough pro-
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1964 CONGRESSIONAL RECORD - APPENDIX A4877
tection given the residents of Brookfield.
They'd have to see it to fully appreciate it,
but it's a great comfort to know it's there.
Religious Pe}ecution in the Soviet Union
EXTENSION OF REMARKS
OF
HON. WILLIAM G. BRAY
OF INDIANA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, September 23, 1964
Mr. BRAY. Mr. Speaker, the follow-
ing letter describing religious persecu-
tion in the Soviet Union was sent by way
of Poland to the editor of Novoye Russ-
koye Slovo, a Russian-language news-
paper published in New York City. It
was brought to my attention by Mr. Paul
Voronaeff, of Indianapolis, Ind., and its
graphic description of intimidation and
terror lends little support to the theory
that the Soviet Union is mellowing:
To all children of God who compose the
church of Jesus Christ-to all evangelical
Christian Baptists living in our land, from
east to west and from north to south,
"Grace be unto you, and peace, from Him
which is, and which was, and which is to
come" (Revelation 1: 4).
Beloved brothers and sisters in the Lord.
We decided to inform you about a sad
event of which we were the witnesses. The
grief which we wish to share with you is our
common sadness, because we all are one
church which is the body of Christ (1 Corin-
thians 12: 26) : "And whether one member
suffer, all the members suffer with it; or one
member be honored, all the members rejoice
with it."
January 11, 1964, Sister Maria Ivanovna
Chmara, living in Village Kulunda, Altai Re-
gion, received information from the prison
in the City of Barnaul that her husband
passed away. It was confirmed by a tele-
gram communication that she is now a
widow, with her four children between the
ages of 13 years to 1 month. Her husband,
Brother.Nicolaj Kuzmich Chmara, born 1916,
together with his wife, joined the church in
1963. This short life in Christ was a vivid
example of a new life to all with whom he
led his former life of drunkenness.
The church at Kulunda, of which he was
a member, testifies of him that he sincerely
loved the Lord and served Him with all his
house. He loved to sing the hymn:
"I was called to work on this earth,
To fight with every idol, -
Not looking on the fearful friends,
To be a witness before the world.
And not afraid of the judgment of the men."
It was December 24-27, 1963, that he, with
Brother F. I. Subbotin and his brother and
sister, B. K. Chmara and L. M. Chmara, ap-
peared before the court and together with
others was sentenced for the name of Christ
for good and conscientious behavior. After
the sentence of the court he spent just 2
weeks in prison, and then the communica-
tion came that he is dead.
January 13, 1964, the widow and relatives
of the dead, together with us, got from the
prison the body of Nicolaj Kuzmich. Dur-
ing the trial by the court, the relatives and
friends had seen him in perfect health and
cheerful. But what did we see when we got
him dead? On his hands are seen marks of
chains. The palms of the hands are burned;
the fingers and bottoms of both feet are
burned. The lower part of the abdomen
has marks of wounds made by piercing with
a sharp and red-hot object, right leg is swol-
len, both feet have pierced wounds, and the
body with signs and bruises. When we saw
all this we had mixed feelings-of deep grief
and joy. Our grief is because our dear
brother Nicolaj Kuzmich had to pass through
such brutal trials and accept death in the
prison walls. We grieve for the unhealed
wounds made by godless hands upon the
innocent hearts of children. Not for evil
deeds, but for good, for love to the people,
to the Lord, and for His name, he bore it
all as a good soldier of Jesus Christ and was
faithful to Him unto death. We are filled
with a deep sorrow at seeing the widow and
her children crying at the casket, with diffi-
culty recognizing the face of their father.
We tried to comfort them and ourselves with
the fact that we all have the Father of or-
phans and widows-and there is a righteous
Judge, the Christ.
During 4 days and nights at the casket
were many brothers and sisters from afar
and from the local area who solemnly con-
ducted services. The funeral service took
place in the afternoon of January 16, 1964,
with a procession through the town singing
hymns and carrying placards which read:
"For to me to live is Christ and to die is
gain."
"Fear not them which kill the body, but
are not able to kill the soul."
"I saw under the altar the souls of them
that were slain for the word of God."
After the burial of the body of the de-
ceased brother we returned to our respective
places with thanksgiving and with greater
zeal to serve the Lord and to be faithful to
Him unto death as our brother was.
Beloved brothers and sisters, we know that
the first question that will arise in your
mind is-What for? What official charges
were presented against him by the court of
prosecutors and for what reason was he
sentenced to death?
For the answer we present some tran-
scripts from the sentence of Altai Regional
Court, Act No. 142, where it said that a
group of Baptists conducted illegal meet-
ings under unsanitary conditions, drawing
the youth and teenagers into the sect group.
Under cover of "cleaning up," they propa-
gated against CUECB (Council of Union of
Evangelical Christian-Baptists in Moscow)
and its position and kept contact with other
likewise illegal groups and other like charges.
This is the definition of the court, accord-
ing to which Brother F. I. Subbotin was sen-
tenced to 5 years of strict imprisonment;
two brothers, Wasilij and Nicoalj Chmara, to
3 years of jail; and their sister, L. M. Chmara,
to 2 years with suspension.
Yes, in our days "unusual" things hap-
pen. We call your attention: Discuss and
tell this to all people who love the Lord.
Tell about this to large and small. To all
who still fear God and who desire to meet
with Christ.
Signed by brothers and sisters of the city
of Barnaul, Village Kulunda, 120 persons.
EXTENSION OF REMARKS
OF
HON. AUGUSTUS F. HAWKINS
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, September 23, 1964
Mr. HAWKINS. Mr. Speaker, in the
recent appointment of Loren Miller to
the municipal court of Los Angeles as a
judge, well-deserved recognition has
been given to one who has assiduously
and without personal aggrandizement
given of his time and talent to the cause
of human justice.
The following article by Paul Weeks,
staff writer for the Los Angeles Times,
highlights some of his major accom-
plishments in the field of civil rights, and
I am pleased to insert it in the RECORD :
[From the Los Angeles Times, May 17, 19841
NEW JUDGE RELUCTANT MEMBER OF PROFES-
SION: DRAGGED INTO LAW "KICKING AND
SCREAMING," SAYS NEGRO NAMED TO BENCH
BY GOVERNOR BROWN
(By Paul Weeks)
Los Angeles' newest municipal court judge
is a spindly, bespectacled man of 61 who ad-
mits he never wanted to be a lawyer.
"I was dragged kicking and screaming into
the practice of law because, you know, in
those days a Negro could be a-doctor, lawyer
or schoolteacher-and that's about all," said
Loren Miller as he relaxed in his Silver Lake
district home late last week.
A few days- earlier, Tuesday to be exact, he
had been appointed by Governor Brown to
fill the unexpired term of the late Judge
Ernestine Stahlhut.
BEGAN ON FARM
Miller views his rise from Nebraska farm
boy to the bench with easygoing, low-key
humor. But it's been a long time since
Loren Miller was a farm boy setting out to
practice law.
Today he is regarded as one of the Nation's
great living civil rights attorneys, with a
trailblazing history of triumphs, particu-
larly in the field of housing discrimination,
behind him. -
The most celebrated, Shelley v. Kramer,
came in 1948 when the U.S. Supreme Court
delivered the epochal decision that racial
covenants on property cannot be enforced by
the courts.
HIGH COURT VICTORY
"That was for a Detroit man who bought
a piece of property, and was denied the right
to occupy it when it was found he was a
Negro," Miller recalled. "We lost that one all
the way up-until the Supreme Court re-
versed it."
Miller said he "guessed" he had tried about
100 racial covenant cases, beginning in about
1939, "before we got that Supreme Court de-
cision."
That was followed by a series of precedent
setting legal victories by Miller against hous-
ing discrimination. They included: A Cali-
fornia ruling that a white property owner
could not collect damages from another
Caucasian because the latter sold racially re-
stricted property to a Negro.
A 1954 State supreme court decision which
forbade the city of San Francisco from fol-
lowing neighborhood racial patterns in rent-
ing public housing.
A 1962 appellate court ruling that a land-
lord cannot evict a tenant because of his
race. Miller fought the case for an engineer
who had rented a Pasadena apartment only
to be evicted when the landlord discovered
his new tenant to be a Negro.
In virtually all his civil rights cases- Miller
has acted as counsel for the NAACP, of which
he is national vice president, as well as re-
gional counsel.
In the latter role, he has played a major
part in striking down school desegregation -
barriers, including the case which led to the
historic U.S. Supreme Court decision of 1954
which discarded the old "separate but equal"
theory.
Born in Pender, Nebr., on January 20,
1903, the second of seven children, Miller was
graduated from high school in Highland,
Kans. He attended the University of Kan-
sas at Lawrence, Howard University in Wash-
ington, D.C., and finally received- his law de-
gree in 1928 from Washburn University in
Topeka.
MOVED HERE IN 1929
He moved to Los Angeles in 1929, where his
mother was then.living, upon learning of the
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CONGRESSIONAL RECORD - APPI NDIX September 24
death of a sister. For 4 years he was a re-,
porter, first on the California News and then
the California Eagle-weeklies circulated in
the Negro community.
In 1933. after his marriage, his wife per-
suaded him to take the bar examination and
return to law. Mrs. Juanita Miller is a USC,
graduate in social work, and is today still
carrying on a career ci her own as a social
worker In the State department of welfare's
Los Angeles office.
The Millers have two children, Loren, Jr.,
27, also an attorney, of 1319 South Highland
Avenue, and Edward, 18, a student at Valley
Junior College. Lore 3, Jr. and his wife,
Anne-Marye have two children. Michael, 5,
and Robin, 4.
OWNS NI WSPAPER
Miller I. one of the few newspapermen to
achieve the goal of owning a newspaper, for
which he once worked. In 1951, he bought
the California Eagle, in which he has regu-
larly written a militant, goading column
with a "freedom now t ' message.
A Democrat since he voted for Al Smith In
1928. Miller has espoused often unpopular,
causes (he defended Black Muslims after A
violent clash with Los Angeles police) In law
and in politics.
ONE OF REGRETS
But one of his regrets as he leaves Is*,
practice for the bench is having to withdraw
from participation in a case which he feels
ultimately will result in Invalidation of an
Initiative measure on .he November ballot.
It would amend the State constitution,
nullifying all antidscrimination legisla-
tion In housing and blocking future legisla-
tion.
Miller is convinced the initiative is uncbn=
stitutional-but he and his allies lost pre-
liminary skirmishes to keep It off the ballot.'
The Big Gyp That's Costing You $200 a
Year
EXTENSION OF REMAR
HON. ALVIN E. O'KONSKI
OF WISCONSIN
IN THE HOUSE OF REPRESENTATIVES
Thursday, September 24, 1964
Mr. OMONSKI. Mr. Speaker, fre-
quently issues that are not widely dis-
cussed by the American people because
they do not know enough about them
are the very issues tat are the most im-
portant.
Such an issue is one that a crusading
Texas Congressman by the name of
WRIGHT PATMAN ha: been calling to the
attention of the Cotguess and the people
for the past several :years. It is the issue
of tax-free foundations. Congressman
PATMAN, although not of my political
party, has been doing a job for the bene-
fit of the country. There is no politics
in his operation. I endorse his effort
sincerely and heartily.
If there are massive abuses of tax-fret,
foundations and tax evasion on the part
of those best able to pay taxes, business
manipulations done under the cover of
educational or che,ritable foundations;
then. it is time for the Congress-Re-
publicans as well as Democrats-to sup-
port Representative PATMAN in legislat=
ing corrective measures.
An article appearing in Saga maga-
zine, October issue, discusses PATMAN'&
effort at length, it was written by Fret.
J. Cool:, a first-rate writer who has writ-
ten hooks about unsung Revolutionary
heroes crime in New York, Pentagon ex-,
travag ances, and many other interestini
matters. He has never written about i.
more intriguing subject and he has donte
it well Cheers to Saga magazine, Free.
Cook, and above all, to my good friend.
and hard-working colleague, WRIGH''
PATMAlf, of Texas.
The article follows:
UNDER AN UMBRELLA of Pious OHAarre Luaxu
THE BIr.GEST, JUICIEST TAx DODGE OF Ai.a,
TIME
In his long career In the House, he ha:a
been one of that body's gutsiest fighters fo.'
the common man-and against the powe
comple tee of our time: the millionaire in
dustrialists, the huge corporations, that
powerful banking trusts. The bigger the?
are, the harder WRIGHT PATMAN fights them.
Right; now, PATMAN is waging the batty,
of his life on behalf of the little man, which
means nine-tenths of all Americans. He i3
out to apply the coup de grace to what h.s
calls "giants with tax umbrellas," and hit
opponents are only people like the Rockefel-
lers and the Du Ponta, who consider as
million dollars mere pin money. The par.
titular "giants with tax umbrellas" whom
PATMAN Is fighting are the huge, tax-exempt
foundations set up by such great industrial
dynasties.
Thes.3 foundations represent a tax escap3
hatch .hat, to PATMAN, Is the most vicious
and ur.just In the whole income tax strut-
ture. 'through this escape hatch. he says.
the extremely wealthy avoid paying anythln:f
like th?'ir proper share of the tax burden--
and the rest of us have to make It up. Just
how far down in our jeans do we have to d1.1
to keel the elite in the tax-exempt status t.3
which they have become accustomed? The
figures. as PATMAN cites them, are fantastic.
He 1-as uncovered deals in which, by us,
of the foundation device, Individuals hav3
escaped paying taxes on literally millions of
dollars in profits.
The total annual loss from such Brob-
dingnagian tax dodgers runs Into the bi-
Iions. And this means that the average ma:i
gets snaked-and soaked hard-to make u 3
the deficit. "Thie year's tax cut would b3
peanuts compared to what would be possible
if fourdation frauds were eliminated," PAT-
MAN d.clares.
PATMAN would like to see the Treasur f
Department figure out exactly how mucil
better off Joe Doakes would be if he were
not helping to pay the taxes of the Rocke-
fellers, etc., but Treasury has exhibited n~
wild enthusiasm for dredging up the fact,:.
In the absence of such explicit knowledge,
the beat that can be offered is an educates
guess. That guess goes this way: Assume
that foundations were required to pay taxes
on their gross Income like other businesae;.,
then If the much-ballyhooed 1904 tax cut
saved you $100, closing the foundation tax
loophole could probably save you double
that amount-another $200. So you are IoE-
ing, out of pocket, $200 a year.
The gimmicks PATMAN has exposed sho-v
the extent of the abuses. Foundations com-
pete w'th banks, making multi-million-dolls r
loans with their tax-free money and ofte2
giving highly preferential rates of interest to
the donor-or his friends, or his businesse t.
They run restaurants, invest In real estate,
build and lease gas stations-enterprises in
which, naturally, they hold an enormot s
competitive edge over businessmen who have
to pal' taxes. In one startling case, PA7-
MAN's researchers found a broker, a member
of the New York and American Stock E>-
changes, using three family foundatior s
(assett;: $28 million) torun an unregulated,
tax-free security enterprise for himself and
his fellow magnates.
"There's one wea'_thy, residential area out-
side of Philadelphia where virtually every
other house has a foundation set up to send
its kids to college at the taxpayers' expense,"
PATMAN declares.
He explained the deal as follows:
Randolph Enterprise Jones is a wealthy
industrialist with an income that places him
comfortably in the upper brackets. He has
a couple of sons who will soon be going to
college. So what does Enterprise do? He
creates the Randolph Enterprise Jones Foun-
dation to provide scholarships for worthy
college students. In anticipation of future
need, he takes a nice, round Sum, say $25,000,
and donates it to the foundation. For this
generosity Uncle Sam rewards him in two
ways. Since this presumably qualifies as
charity, he pays no income tax on the $25,-
000, and in addition, If this burst of benevol-
ence has dropped him into a lower income
tax bracket, he saves a further tidy hunk
of pocket money on the taxes he pays on
his remaining income. Enterprise, as can be
seen, is making hay with this deal, and if
he can just arrange: to recapture the $25,000,
he'll be home scot free. This last step is not
too difficult. Enterprise scouts around and
finds an obliging college that is positively
overawed by the scholastic attainments of
Randolph Enterprise Jones, Jr. Then Junior
gets the scholarship from his father's foun-
dation-and all his college expenses are paid
with tax-free money. The same deal is later
worked with son number two, the foundation
being kept alive by carefully gaged bequests
until there are no more deserving Enterprise
Joneses to be rewarded.
"All of this Is a kind of city slicker deal,"
says PATMAN, who comes from the north
Texas farmlands. "There are more city
slickers in the United States today than ever
before, and their deals mount up to a lot
more in money. It used to be that the city
slicker was working to euchre you out of $5
to $100; today, It's millions.
"To the very rich, our tax system is just
like passing around the hat. If they want
to put in, they can. If they don't, they don't
have to.
"Suppose everybody took advantage of
this. Suppose every American had his own
foundation? You know what would hap-
pen? We wouldn't collect enough money to
pay the Capitol's police force. We couldn't
keep Congress in session. The whole thing
would collapse."
Most of us have probably been brain-
washed into considering foundations as es-
sentially noble enterprises. Some of them
are, of course. At their best, foundations
finance important medical research, help care
for orphans and the aged, support the arts
and education. But there Is a huge-and
constantly growing-number of foundations
whose principal function is to pile up huge
fortunes, giving only a pittance to charity as
a tax-escape cloak. Such foundations, ex-
empt from all taxation, act In reality as
holding companies, dominating huge indus-
trial empires, making the wealthy ever
wealthier and more powerful at the expense
of the average man.
After a dogged, 3-year probe of what he
calls "the foundation mess," PATMAN cites
some specific examples:
The Rockefeller foundationsAt the close
of 1960. seven Rockefeller family foundations
held 7,891,567 shares of the common. stock
of Standard 011 of New Jersey. (In mid-
May 1964, Jersey Standard was selling at $88
a share and paying $2.80 annually. This
would make such a holding worth $694,457,-
896-and would result in $22,096,387 of tax-
free Income.) But Jersey Standard was not
by any means the only major oil stock in the
portfolios of the Rockefeller foundations.
They also owned hundreds of thousands of
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