PROPOSED FREEDOM ACADEMY

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CIA-RDP67B00446R000600090033-1
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July 9, 1963
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ApproveFoRele?)epL7RECORDIA APPENDIX 68000600090033-1 A4235 chairman of a large civic group of citizens of all faiths, I am honored to be invited to participate in this dedication service. This temple for years has been recognized as one of the community's great assets. We, the citizens of East Orange, therefore share with you the benefits of a dream that has become a reality. RABBI RANSON Your setting aside in this fine new build- ing a brotherhood chapel in honor of my friend, Rabbi Marius Ranson, is I am sure appreciated by everyone in this community. We of this area owe much to Rabbi Ranson for his contribution to the spiritual uplift of our people during the long period in which he served this highly respected temple with efficiency and distinction. Those of us who know him (and his friends are legion) feel that he richly deserves the honor which you are bestowing upon him today and we are pleased that you are doing it while he and his gracious wife, daughter and grandchil- dren can enjoy It. Dr. Ranson was long accepted by the com- munity as our rabbi. My association with him before he went to Florida was always pleasant and mentally profitable. My work with our.rabbi convinced me that his sole recreation, his only. pleasure, his real compensation, his only measure of suc- cess in life is the opportunity to be. of service to his fellow man and for the expression of friendship to all men. No nobler life can any man live. While the rabbi delivered good sermons, it is my candid opinion that he preached a better sermon with his life than with his lips, and that, in my. opinion, is an accom- plishment which few men attain. I believe it was Aristotle, that great lover of democracy who, in his wisdom said, "The greatest compliment one man can pay another is to say that he is a good citizen." That is the compliment I truthfully pay to my good friend, mankind's benefactor, your honored guest, Dr. Rabbi Marius Ran- son, Wyoming County, W. Va., Settled by Veterans of the Revolution EXTENSION OF REMARKS OF HON. ROBERT C. BYRD OF WEST VIRGINIA IN THE SENATE OF THE UNITED Tuesday, July 9, 1963 Mr. BYRD. of West Virginia. Mr. President, Wyoming County in West Virginia is proud of the fact that its earliest settlers were veterans of the American Revolution. Many of these settlers became prosperous farmers and plantation owners who dominated county politicis until the Civil War. An interesting historical article on Wyoming County appears in the Charles- ton (W. Va.) Gazette-Mail of June 16, 1963. I ask unanimous consent that the article be printed in the Appendix of the RECORD. There being no objection, the article was ordered to be printed in the Ap- pendix of the RECORD, as follows: WYOMING COUNTY, W. VA., SETTLED BY VETERANS OF THE REVOLUTION Wyoming County was created December 17, 1849, by Act of the General Assembly, by division of Logan County. The movement was sponsored by leading citizens of both upper and lower Logan, led by James H. Ferguson, an attorney. Statistics of the time read: Present area 507.2 square miles; terrain generally steep and rocky, heavily timbered; one large and other smaller areas of good farmland; exten- sive areas underlaid with smokeless coal and natural gas. Population 1,583 whites, 61 slaves, 1 free black. County government or- ganized March 22, 1850. Prosperous farmers and plantation owners dominated county government and politics, and held county offices until Civil War. Earliest settlers were veterans of the Revo- lution. First settlement made by John Cooke, 1799, called "Cookes," later named Oceana, was county seat until 1907. Most of our settlers came from Kentucky, Virginia, and North Carolina. Three of them owned slaves. The ensuing decade saw a steady growth. in population and progress generally. The peo- ple lived by farming, trading, digging gin- seng, and various trades. There were dozens of water grist mills and a few whipsaw type sawmills. The inadequate public schools were supplemented by private subscription schools. Methodist and Baptist circuit riders preached at the three Baptist churches and homes. Population in 1860: 2,861. In 1861: Recruiting began immediately after secession of Virginia. County govern- ment ceased to function, the county offices were locked up and no records kept. The only local fighting was done by Home Guards. Public buildings and records were not dam- aged, and few homes were burned. In 1865: H. J. Samuels reorganized the county government and held court. Five men were indicted for war crimes, two of whom were subsequently tried and convicted. Union men took over the county government. The school system and Baptist churches were reorganized. In .1874: Speculators bought extensive areas of timberlands, and there was talk of a railroad to facilitate development of timber and coal. A weekly newspaper was estab- lished at Oceans. There were substantial settlements in every section of Wyoming, with postal routes and post offices, and dirt roads connecting them with mills and the county seat. In 1884: Philadelphia interests began buy- ing coal and mineral rights. In 1903 T. N. Barnsdall bought the first of many tracts of coal, oil, and gas, with mining and removal rights. Natural gas was discovered on Milam Fork 1918, and made available for domestic use in that area. Extensive drilling during the 1940's by Hope Natural Gas Co. and others resulted In construction of two large and costly gas stations, laying pipelines for transportation of gas, and gas made available for domestic use around 1940. Drilling continues. Between 1882 and 1903, nine different companies considered building a railroad into Wyoming. In 1905 the Virginian Rail- way built its line through upper Wyoming coalfields. The first commercial mine opened near Mullens, 1912, beginning a pe- riod of phenomenal growth and prosperity which lasted into the 1920's. In 1891: Outside interests began timbering operations In Oceana district, floating logs down Guyandot River to market. In 1895, 0. Crane & Co. began operations, floating logs down creeks by means of splash dams, into the Guyandot, and continued in busi- ness until 1912. Timbering on a smaller scale and sawmilling continue to this day. to measure our own performance today-by Population 1890, 6,247.. that eternal standard set forth on this In 1895, 90 frame, one-room schoolhouses 4th of July in 1776. replaced the log cabins. Beginning 1909, "We hold these truths to be self-evident, seven district high schools were established, that all men are created equal, that they which now have modern fireproof buildings are endowed by their Creator with certain and modern equipment for teaching and unalienable rights, that among these are athletics. Few one- or two-room schools life, liberty, and the pursuit of happiness." remain. Trade school . established 1942. On those words of 1776-and on the be- Population 1900: 8,380, lief those words express-history's strong- Population 1950: 37,590, reduced to 34,834 est nation and most successful society has in .1960, by loss of miners and business been built. By the meaning we give to caused by mechanizing mines. those words in this year of 1963, the fate Approved for Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 The Democrats regained control of Wy- oming, 1932 and continue in power. in 1963: Our three. municipalities have. ap- proved water supply, garbage and sewage dis- posal, firefighting equipment, paved streets, limited recreational facilities. The county has two banks, two weekly newspapers, 125 churches, various civic clubs and .secret orders, medical and dental facilities, one general hospital, three clinics, three funeral homes, ambulance service, two dry cleaning plants, self-service laundries, supermarkets, chain grocery stores, electric power since 1926, telephone service since 1936, TV serv- ice, and permanent courthouse, jail and county annex. MARY K. BOWMAN. Remarks by Vice President Lyndon B. Johnson,, July 4, 1963, at Philadel. phia, Pa. EXTENSION OF REMARKS of HON. ROBERT N. C. NIX OF PENNSYLVANIA- IN THE HOUSE OF REPRESENTATIVES Tuesday, July 9,1963 Mr. NIX. Mr. Speaker, I am privi- leged to place in the RECORD remarks delivered by the Vice President of the United States on July 4, 1963, at Phila- delphia marking the 187th observance of Independence Day. It is significant that in this time of world challenge, in this day of national sooil searching, in this decade while men and women of all countries seek equality and justice, the Vice President of these United States in these remarks gives validity to the immortal concepts as expressed by the, words of our Constitu- tion: PROTECTION OF LIBERTY I On this. honored day, here before this his- toric hall, we come together to celebrate the birth of our country. Yet it is the special privilege of our generation to know that this is not the cradle of liberty for Americans alone-it is, in a- far larger sense, the cradle of liberty and Independence for all mankind. What was wrought here in the 18th cen- tury has changed. the world in this 20th century. To the farthest corner of the globe, men inspired by the Declaration of Inde- pendence have themselves declared their own independence. Fifty new nations. have been created since World War H. None has chosen to adopt the Communist system but many have adopted the ideas-and even the very language-of the great documents of our American heritage. Of this, we can be justly proud. But the patriot is not content with pride alone- he 1s concerned first and always with per- formance. This is the challenge of our sys- tem and our society lays before all Amer- icans today. Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 A4236 CONGRESSIONAL RECORD - APPENDIX and future of our Nation-and the success here on July 4, 1T78. We, no less than they, of the cause we are privileged to lead-may have pledged "our lives, our fortunes and well be determined. our sacred honor" to preserve for freemen This is a challenge. It is not an indict- throughout the globe life, liberty and the ment. Our system has not failed. It is not pursuit of happiness. What we have done In danger of failing. Our national soul is so courageously for others, let us now do not lost. It Is not In danger of being lost. proudly for ourselves. The standards of law and order are not com- This is the spirit of this Day of Inde- ing down-on the contrary, we can believe pendence-the spirit of America itself. For that they are now rising higher. For our as Thomas Jefferson wrote In the last letter whole history has been a history of enlarging before he died on the 50th anniversary of the protections of individual liberty, even as this great day: we are called and challenged to do once more "All eves are opened. or opening, to the today rights of man ? ? ' For ourselves, let the Hardly had the Constitution been written annual return of this day forever refresh our than the people demanded of their leaders recoilectioki of.. these rights and an undi- the protections of their liberties embodied minished evotl to them." in the Bill of Rights. The sons and grand- sons of the Founding Fathers were chal- lenged to extend those protections to the slave. Their sons and grandsons were, in turn, petitioned In the streets and public places to extend equality to women as well as men. We, as their heirs, have been chal- lenged no less forcefull to mobilize our arms, our resources, and our young men to protect and defend the liberties of freemen through- out the world. It has been the destiny of each genera- tion of Americans to make liberty more se- cure for all by making liberty more certain for each of us. This is clearly the great destiny-and great privilege-which we of this generation face In our own land now. The words on which our Nation stands- the words on which it has stood 181 years- are clear and unmistakable. We would de- mean ourselves, we would demean our pa- triotism. we would demean our dignity as freemen to interrupt the course of our na- tional progress to enter upon a prolonged debate about either the meaning of those words-or the obligation they impose upon us to honor and fulfill their meaning. a The words of the Declaration of Inde- pendence-the words of the Constitution of the United States-do not need to be fur- therinterpreted. They need to be Implemented-for all Americans. But implementation is not the' work of government alone. EXTENSION OF REMARKS OF HON. HUBERT H. HUMPHREY OT IdrNNLSOTA IN THE SENATE OF THE UNITED STATES Tuesday, July 9, 1963 Mr. HUMPHREY. Mr. President, re- cently the Minneapolis Star published an editorial concerning the pending bill to establish a Freedom Academy. In re- sponse to this editorial I have received a letter from my friend, Henry Mayers, of Los Angeles. Calif.. In which Mr. Mayers seeks to clarify certain points made in the editorial. since I believe that members of the Senate will be interested In these points of clarification, I ask unanimous consent that Mr. Mayers' letter be printed in the Appendix of the Rzconn. There being no objection, the letter was ordered to be printed in the RECORD, July 9 The State Department's bill does not go far enough in reaching all segments of For- eign Service personnel who should receive training, and it makes a mere gesture toward the training of non-Government personnel. The Freedom Academy bill undertakes seri- ous research and development, leading to training programs for such private sector groups as the U.S. oversea business com- munity. foreign correspondents, students at foreign universities, tourists and other seg- ments of our society likely to be confronted with the realities of Communist political warfare abroad. The Freedom Academy bill also provides for the training of Government personnel and private citizens of other free world nations. The assumption is that if such training Is tru ful for Americans, it is equally, if not more useful for the nationals of other coun- tries who continually face the assault of the Kremlin's highly trained political warriors, operating in their homeland. Needless to say, the training is in the principles of freedom and democratic change, no*, in how to defend current U.S. policies. I have met a surprising number of offi- cials In Washington, some in the very high- est echelons of the Government, who freely dispense misinformation concerning the Freedom Academy bill. Few, if any of them, have troubled to read the bill. I know I can count on your cooperation in calling for un- prejudiced consideration of this bipartisan legislation by every American concerned with a realistic approach to the cold war chal- lenge. Sincerely, J. Edgar Hoover Honored EXTENSION OF REMARKS OF HON. JAMES C. AUCHINCLOSS of NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Tuesday, July 9, 1963 Mr. AUCHINCIOSS. Mr. Speaker, pursuant to the permission given to me, I am pleased to include with my brief remarks a copy of a resolution passed on the 20th day of June 1963, at the 5',st Annual Conference of the New Jer- sey State Association of Chiefs of Police commending the leadership and cooper- a.ion of the Federal Bureau of Investiga- tion under its immortal Director, J. Ed- gar Hoover I am sure that my colleagues and every true American feel a real sense of in- debtedness to Mr. Hoover for his un- selfish and devoted attention to the de- mands of his office and the meticulous care and thoroughness in the discharge of his duties. He is an example to all of us and I know an inspiration to many. The resolution follows: RxsOLQTION or NEW JERSEY STATE ASSOCIATION OF CHIEFS OF POLICE Whereas the members of the New Jersey State Association of Chiefs of Police and their respective departments continually receive excellent cooperation and, assistance from the Federal Bureau of Investigation, Its Di- rector, J. Edgar Hoover, and its various divi- sions; and Whereas Director Hoover and Special Agent in Charge of New Jersey Ralph W. Bachman have diligently supported the aims, objec- tives, and ideals of this association and as- Governments can never be more just than Finn- RURERT H. HIIMFHREY, the hearts of those from whom they derive ornate office Building. their just powers. If we are to enjoy a just Washington. D.C. and tranquil society, we must reach decisions DrAS SzwATos HumPHREY: On May 8. 1963, In our private hearts even as we strive to the Minneapolis Star published an editorial retch decisions in our public policies. This entitled "Different Academies," which is our real challenge today. referred to the Freedom Academy bill (S. These times-the Issues of this moment In 4141 as proposing "to emulate the Russians our history-call out for men and women in Cnba and train nationals of other nations who love their country to step forward with in murder, sabotage and general subver- resnonsible leadership to implement in our Sion." national life the ideals of our national This is not an Isolated example of such literature. defamation of the nature of the Freedom In every State. In every community, In Aendemv bill and the objectives of Its sena- everv American home we have the capability tonal sponsors and citizen advocates. to answer the needs of this moment. It Is But as the above newspaper is the most the responsibility of each Individual to put prominent one In the State of Minnesota, those capabilities to work to secure the I can it to your attention as a typical ex- answers required for the success of our sys- ample of the confusion and misinformation tem and society. that exists concerning the bill, not only In Tf we as a nation are to stand up to our the American press, but throughout official full height in the world, we must be con- Washington itself. corned with nobler things than denying one As you know, the bill's statement of con- another the simple right to sit down In pub- gresaional findings and policy says "Not only He Places. do we need to improve the existing instru- if we as a nation are to stay In front of the meats, but a wide range of additional world we must occupy ourselves with more methods and means in both Government and Important concerns than asking one another private sectors must be worked out and to step to the rear of public vehicles. integrated-to defeat the many forms of If we are to commit our arms, our re- Communist aggression and to extend the sources and the lives of our young men to area of freedom, national Independence and support the right of freemen to come and self-government-in accord with our ethic." go without molestation or harrassment to a What the bill proposes be researched and free city such as Berlin, we can make no less taught in a Freedom Academy will be no acommitment to assure the right of all our more subject to ethical challenge than what fellow countrymen to come and go without is to be taught in the State Department's embarrassment or barrassment along the proposed National Academy of Foreign Af- highways of America Itself. fairs bill (S. 865). But the Freedom Acad- We of this generation have proved our- emy would give such training In greater selves worthy heirs of those who assembled depth and on a wider scale. Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 CONGRESSIONAL RECORD - APPENDIX A3775 Bureau, that the Levitt firm refused to sell to him. The FHA said then that it could do noth- ing in the matter because Levitt had secured Federal 'financing before a Presidential a,nti- discriminatory housing order was issued. PLANS TO FILE COMPLAINT Among others who accompanied Dr. Mann yesterday were: The Reverend Reinhart B. Gutmann, staff member of the Christian Social Relations Department of the National Council of the Episcopal Church; Robert L. Nelson, special assistant to the staff director of the Civil Rights Commission, and Ronald Natalie, staff attorney to the commission. All were acting as private citizens who are Belair property owners, they said. Dr. Mann said later he wanted to move to Belair because the houses were good buys and it would be closer to his wife's job at the Glenn Dale Sanitorium. He plans to file a complaint with the FHA and the Presidential C uy, mittee/ on. Fair - Housing. e Freedom Academy Will EXTENSION OR REMARKS OF HON. CHARLES L. WELTNER OF GEORGIA IN THE HOUSE OF REPRESENTATIVES Wednesday, June 12, 1963 Mr. WELTNER. Mr. Speaker, the American Legion has long been noted for its patriotism and devotion to country. Throughout its history, it has recognized that communism must be fought on many fronts with many weapons. East Atlanta Post No. 159 has recently adopted by unanimous vote, a significant resolution concerning the proposed "Freedom Academy." I am pleased to offer it for inclusion in the CONGRES- SIONAL RECORD: AMERICAN LEGION POST NO. 159 RESOLUTION Whereas the Freedom Academy bill (S. 414; H.R. 1617, etc.) was passed by the U.S. Senate in year 1960, though failed to pass the House; and Whereas this Freedom Academy bill is designed to combat the Soviet research and training program on nonmilitary conflict in political warfare; and Whereas this being a different kind of con- flict on nonmilitary struggle being promoted and sponsored by the Communist in every school and/or organization in all countries in and outside of Russia; and Whereas the United States in Senate re- vised bill S. 414 proposes to set up a school, the Freedom Academy, which would act on the same basis as Went Point or Annapolis in training combat forces, yet to be known as nonmilitary; therefore be it Resolved, That members of East Atlanta Post 159, of the American Legion, ask the Georgia Department Executive Committee to memorialize the National Executive Com- mittee to petition the U.S. Congress to adopt the S. 414 bill and the H.R. 1617 bill, as sponsored by the Orlando Committee, of Orlando, Fla.; further . Resolved, a copy of these resolutions be fur- nished our Representatives in Washington, D.C., and a copy also be sent to the Atlanta Newspapers, Inc., in Atlanta, Ga. Unanimously adopted this 23d day of April 1963. AMERICAN LEGION POST NO. 159. CHESTER BADURSAI, Commander. WALTER B. JONES, Adjutant. Why Not Let Blue Cross Handle Aged Care? EXTENSION OF REMARKS OF HON. FRANK THOMPSON, JR. OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Wednesday, June 12, 1963 Mr. THOMPSON of New Jersey. Mr. Speaker, while we have been occupied of late with other issues of paramount con- cern, the national debate over methods to provide hospital insurance for the aged continues. I happen to believe that the best method is a program financed through and operated under social se- curity. "Those interested in the issue have advanced alternate methods. One such method was recently brought to my attention by a physician who resides and practices in Princeton, N.J. The method he suggests is set forth in a recent issue of Medical Economics. It is outlined in an article entitled "Why Not Let Blue Cross Handle "Aged Care?" With your -permission I should like to place before you this article and my reply thereto which was in the form of a letter. The article and my letter are as follows: WHY NOT LET BLUE CROSS HANDLE AGED CARE?-THAT'S WHAT BLUE CROSS AND THE A.H.A. PROPOSE AS AN ALTERNATIVE TO THE ADMINISTRATION'S HEALTH CARE PLAN- HERE'S WHY THEY SAY THE GOVERN- MENT MUST PAY FOR HOSPITAL INSUR- ANCE FOR THE AGED, BUT BLUE CROSS SHOULD RUN THE PROGRAM Practially all the aged need help in pay- ing for hospital insurance policies. It's got to be Government help, and "the tax source of the funds is of secondary importance to us." The important thing is for the in- surance to be purchased and administered through the voluntary nonprofit prepayment system. That's the gist of two public statements made last year by $lue Cross and the Amer- ican Hospital Association. They did not at- tract much attention then; 'President Ken- nedy's aged-care plan took the play away from them. But after the Kennedy plan was comprised and defeated in the Sen- ate, some Congressmen took a second look at the Blue-Cross A.H.A. proposal. Its com- bination of Government moliey and private initiative may turn out to be a popular po- litical mix in 1963. Can you pocket the Government's money without winding up in the Government's pocket? A good many doctors have won- dered if that's where the Blue Cross-A.H.A. proposal might lead. So Medical Economics Associate Editor Carlton Smith recently put some pointed questions to Walter J. McNer- ney, president of the Blue Cross Associa- tion. Here are the highlights that emerged from their discussion: "Question. Mr. McNerney, doesn't your proposal call for a kind of Government sub- sidy of Blue Cross? "Answer. No. What we've proposed is Gov- ernment subsidy of the 65-and-over age group to help them buy the hospital care protection they need but can't afford. "Question. Do you mean that assistance would be given directly to the aged to help them pay for Blue Cross coverage? "Answer. We haven't specified Blue Cross. Our proposal was that the administrative machinery of the entire voluntary prepay- ment system be used. There's already a shortage of skills on the administrative side of health care. So to create a parallel or- ganization as a Government agency would only heighten the shortage and make for unnecessary duplication. "We propose to make use of the experi- ence that the voluntary system has acquired in enrolling millions of subscribers. Blue Cross, for example, has developed a high degree of sophistication in working with doc- tors, hospitals, and subscribers. As a result, quality of care isn't subordinated to purely quantitative considerations. For quality hospital care, the U.S. public needs that kind of experience-and it can't be acquired over- night. "Question. Why, then, have Blue Cross and the hospitals proposed using Govern- ment money to subsidize the over-65 group? "Answer. Because Blue Cross can't provide the money, particularly for people reaching retirement age who never had Blue Cross during their working years. They never participated in creating the plan's reserves. Blue Cross can't undertake to subsidize a special group and at the same time continue to be competitive. - "Question. What about the hospitals? Couldn't they give aged patients a discount? "Answer. That might have been possible back In the days when a hospital was a 'house of mercy' with mostly volunteer labor. Today's hospital doesn't have the financial cushion to absorb such a loss. So if you eliminate the prepayment system and the hospitals`as a subsidy source, the only practicable alternative is Government money. "Question. How much money? A good many doctors aren't convinced that the over-65 are in quite the dire straits that are publicized. How much assistance do you think is actually needed? "Answer. Blue Cross has made a thorough study of that question. On the average, the aged's hospital expenses are roughly double those of people under 65. Their incomes, on average, are of course considerably less than those of the younger group. And our study tells us that there will always be an aged group in need of some help. "Granted, not all the aged need help. Some of today's aged are fairly high on the scale in terms of assets and income. Yet what makes the aged unique as a group is the disproportionate number with low in- comes and high health care expenses. And because of their fixed incomes, they're usual- ly not protected against inflation. "Question. If the need for assistance varies within the aged group, how will you determine who gets how much help? "Answer. Blue Cross and the hospital's have suggested a scaled-income system- more help to those with low incomes, less help to those with higher incomes. An aged person at the bottom of the scale might be subsidized to the extent of 100 percent of the cost of his hospital insurance. Some- one at the top of the scale might get a 25 percent assist. And there would be grada- tions in between. "Question. Would every aged person get some help, whether he needed it or not? "Answer. Yes. On the scaled-income sys- tem, everybody would receive some help. We feel that the relatively few aged with sub- stantial resources have been overplayed as a reason for not simplifying the subsidy sys- tem, "Question. How would you determine where an aged person belonged on the sub- sidy scale? "Answer. Probably by a special report he'd make to the Internal Revenue Service or to some other Government agency. "Question. Then each person receiving assistance would get his money directly from the Government-as a monthly check, for example? "Answer. The amount could be added to a Government retirement check, or it could be Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 A3776 CONGRESSIONAL RECORD - APPENDIX a separate check. Each recipient would have to supply evidence that he was insured for hospital care-possibly through certification by the carrier. "Question. Let's take a bank president who retires with a net worth of $1 million- plus and an income of around $75,000 a year. Would he be eligible for assistance? "Answer. It's conceivable that he'd get a minimal subsidy if he carried health Insur- ance. Whether he'd need it or not Isn't really the issue, as far as Congress is con- cerned. There are strong forces in the country-including people in industry management itself-who feel that after all the taxes they've paid to the Government, they and their employees and dependents should get something in return. If such power groups developed enough weight. Con- gress would have to see that everybody got something. That's a matter of cold political reasoning. "Question. Mr. McNerney., wouldn't your proposed system bring the Government Into medicine on a large scale? "Answer. The Government would cer- tainly develop some standards-'some con- trols. But the extent to which it would try to manipulate the controls-to take over- would be an indication of how well or poorly Blue Cross performed. We think our stand- ards and performance are so good that. If we were Involved, there'd be no need for excessive Government controls. _ "Question. But if you opened the door to the Government this way, wouldn't it soon want to take over? "Answer. I think not. Blue Cross is cov- ering many retired Federal employes through- out the country, and our underwriting rela- tionship with the Government is working well. The State of Texas Is buying Blue Cross for its indigent aged patients, and our experience there is good. "The administration and Congress might welcome our voluntary prepayment plan as a buffer against the many complex issues that arise in the course of covering a sizable part of the population. Besides, there's a growing bipartisan sentiment that the Indi- gent in this country deserve to get good quality health care. This feeling isn't nec- essarily prompted by a desire to have the Government take over medicine. "Question. Granting the good intentions, isn't there a danger that, once you started a plan such as you propose for the aged. pretty soon everybody would want the Gov- ernment to pay for his hospital care? "Answer. Some people may be aiming for that. But right now the bipartisan middle group in Congress doesn't seem to be. The essential question is this: Would acknowl- edging the need for more Government help to the aged strengthen the voluntary health insurance system or weaken it? I'm con- vinced that what Blue Cross and the hos- pitals are proposing would strengthen the voluntary system." DEAR DocroR: I want to thank you for for- warding the article entitled "Why Not Let Blue Cross Handle Aged Care?" which ap- peared in the May 8 Issue of Medical Eco- nomics. I read that article with great in- terest. As I promised In my letter of last week, my views respecting the article follow: Blue Cross, it would appear, is again jock- keying for position as Congress heads to- ward renewed consideration of a hospital insurance program for the elderly. The Blue Cross Association proposes that a Federal program for the elderly consist of subsidization of the cost of acceptable pri- vate hospitalization coverage (i.e.. Blue Cross). The Government's contributions are to be made on a sliding scale based up- on individual income. I think the proposal Is deficient on several counts : I. Subsidization of Blue Cross contracts would involve considerably more cost to the program than If the underwriting func- tion were assumed by a social security fund. Additional expenses involved would include: (a) risk charges; (b) unnecessary or un- reasonable charges for overhead such as might be involved in the payment of sal- aries, advertising, promotion, and lobbying expenses; (c) payments to hospitals In ex- cess of reasonable costs--a reimbursement practice of a number of Blue Cross Plans: (d) the cost of Blue Cross establishment and operation of a national apparatus. Blue Cross, as you know, is not really a func- tioning national entity, but Is. essentially, a loose confederation of more than 70 differ- ent organizations. Coordinating all these local plans would represent a costly and complex operation and the national head quarters has not had any comparable task In the past, so that it cannot be demon- strated that the capacity exists. On the contrary. the Blue Cross Association has on several occasions been unable to obtain com- pliance among member plane with its an- nounced national policy because the auth- ority of local member plans has been dom- minant. 2. Blue Cross claims that it now has 5 million subscribers who are aged 85 and over. A large proportion of those enrolled pay premiums based upon community rat- Ing-that is, rates representing an average cost of all subscribers, both young and old. Blue Cross says that it pays out far more than it takes in from its older members. A program involving Government subsidy - would encourage Blue Cross to raise its pre- mium levels to a point covering the actual claims experience of these older persons. eliminating the community rating factor. A factor. Incidentally, which had been in- cluded In the premiums charged these older people during their younger and more claims-free working years. The Government would thus conveniently relieve Blue Cross of a major obligation by its payment of sub- stantially higher premiums for the same coverage previously provided by Blue Cross at lower cost. This would be a unique beneficial gesture toward Blue Cross and would not affect commercial insurance com- panies In the same fashion. The commercial carriers, as you know, have been making a substantial profit on the limited coverage offered to older people. 3. There is no question that a social security underwritten and administered pro- gram would bold the interests of those in- sured paramount. There are serious ques- tions raised, however, as to whether many Blue Cross plane have an equal overriding commitment to their subscribers. I think it fair to state that Blue Cross boards of directors are, in the main, dominated by per- sons directly or Indirectly connected with the providers of health services-hospitals, doctors, etc. State regulatory agencies have exhibited increasing concern over this im- balance in representation, and what even borders on conflict of Interest. What we want is a program with an unqualified, un- hedged, and unlimited dedication to the beneficiaries of that program. I know social security can make that commitment; Blue Cross, at least at present. cannot. 4. No one has. as yet, been able to devise an equitable and satisfactory income test- and Blue Cross is no exception. Such a test would greatly complicate any program and would result in inequities to many bene- ficiaries. The requirement that millions of people copay premium costs would mean that many might not be able to pay initially or maintain their share of the cost. Indeed, as premium costs went up the burden would June 12 public assistance plan with a means test. All beneficiaries should be able to secure the protection on an equal basis; employ- ment of an income test works against this vital principle. I am not so-sure that all of the Blue Cross plans want to participate in a social security financed program. The American Hospital Association statement of January 1962, quoted in the Medical Economics article, says, "The tax source of the funds is of secon- dary importance to us." The Blue Cross plans, meeting concurrently with the AHA omitted that phrase from their statement. I understand that this omission was deliber- ate and reflects the substantial opposition of a number of Blue Cross plans to the essential principle of social security financ ing. Related to this is the fact that the Blue Cross plans do not speak with "one voice." The 75 or 78 plans are, basically, locally and not nationally oriented. Their policies vary, reflecting local biases, pre- judices. and methods of operation-many of which would be unacceptable in a national program. Perhaps the most dramatic Illustration of the degree of disorder and lack of agreement among the various plans occurred last fall. The Blue Cross Association, at that time, announced in full-page advertisements that all Blue Cross plans were prepared to offer new plans of hospital protection for the elderly during the fail of 1982. Millions of older Americans were tragically misled by that advertising campaign. Many Blue Cross plans-including the two largest ones-did not offer new programs. The Blue Cross Association could not force its re- luctant or recalcitrant member plans to im- plement a national program. Blue Cross, definitely, does not speak with a single voice. It is, rather, an unled, dissonant chorus. I realize that the position I have out- lined above is somewhat strong. I should point out that I am familiar with a number of outstanding Blue Cross plans which do a fine job of serving the public interest. Unfortunately, too many other Blue Cross plans do hot meet the high standards estab- lished and maintained by the best plans. I should also indicate that while I firmly oppose subsidies to Blue Cross, r have an open mind on the possibility of making use of Blue Cross in certain aspectsof adminis- tration of a social security-financed program. Power Strategy EXTENSION OF REMARKS of HON. WATKINS M. ABBITT OF VIRGINIA IN THE HOUSE OF REPRESENTATIVES Wednesday, June 5, 1963 Mr. ABBITT. Mr. Speaker, the of- ficials and white people of Prince Edward County have been under the guns of the Federal judiciary for many years, par- ticularly since the Supreme Court deci- sion of 1954. All during this time there has not been a single incident of disorder, violence, or discourtesy charged to the white people even though during this time there have been some public assem- blies that could well have brought on disorder had the white people of Prince Edward been other than sincere and h t i th i ff ones n e r e orts and attempts to become ever greater. But, my principal objection to this feature Is that we are talk- seek legal adjudication in the principles ing about a social insurance program, not a involved in the school controversy. Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 , Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 1963 CONGRESSIONAL RECORD - SENATE 7721 1962. But two factors were at work in the economy in these years that together more than account for this difference. In the first place, our Armed Forces were reduced by 500,000 between 1953 and 1955, as we demobilized following the Korean con- flict, whereas they were increased by 314,000 between 1960 and 1962 as our military com- mitments and involvements around the world tended to become more numerous and to deepen. Second, labor force participation rates were rising between 1953 and 1955 (from 58.5 to 58.7 percent), which made the task of preventing a rise in unemployment in that period more difficult; they were declining between 1960 and 1962 (from 58.3 to 57.4 percent), which simplified the task of hold- ing-unemployment down. We may ask what would have been the result as regards changes in unemployment if these rates had remained unchanged over the two periods. Interestingly enough, if this had been the case unemployment would have increased by half again as much in 1960-62, when Federal expenditures were being increased by nearly $15 billion, as it did in 1953-55, when Fed- eral expenditures were being reduced by around $7 billion. In short, the apparently better unemployment record of 1960-62 was due not to a difference in Federal expggnditure policy, but- to the the simple fact-that in those years there was an appreciable drop in the percentage of American people going into the labor market in search of work. I am sure you understand that the dialog on the relation of budget cuts to employment and to unemployment and on the causes and consequences of the 1957-58 recession are Inspired by more than an academic interest in clarifying a few points in business cycle theory or annals, though we may hope for some byproducts of this character. - On the contrary, the dialog is inspired by a very practical policy question. But if I may say so, quite respectfully, the question is not, as the President suggested in his speech to the newspaper editors; whether we shall at this time have wholesale budget cuts of $5, $10, or $15 billion. The question is whether, with the economy rising at a good rate, and I would judge at a good bit faster rate than was officially expected when the budget was put together, but with a large budgetary deficit in prospect, it is sound fiscal policy to increase Federal spend- ing by $5 billion at the same time that we are reducing taxes--over a 3-year period- by some $10 billion. The question is whether in this context of economic conditions and with our long-term interests prominently in mind we would not be better advised to exercise a closer control over Federal spend- ing increases and possibly to hold spending levels unchanged as between fiscal 1963 and fiscal 1964. This is the practical question, and the purpose of this paper is to show that as we seek an answer to it, efforts at expenditure control should not be blocked by a general goods and services In 1957 - which occurred within the limits of a single quarter, and which came to $1 billion on a seasonally adjusted annual rate basis- but followed an annual rate increase of $1.3 billion in the first 6 months of the year and was followed by a $400-million increase in the first quarter of 1958, should be assigned major respon- sibility for two recessions, a $121/2 billion budget deficit, and a very large outflow of gold. If we accept this version of history and this line of argument we will have committed ourselves to a policy that is not only in- flationary In its direct effects, even if we have to wait a bit for the inflationary ef- fects to show themselves, but which will sup- port and amplify all independent inflationary forces at work in our economy. What is more, we will have committed ourselves to a fiscal policy which implies the steady growth of government, and in particular of the Federal Government, rela- tive to the private sector of the economy. And we will have invited a basic restructur- ing of our traditional institutions: The fact is, however, that there are checks and balances in our economy and in our political system that can prevent such processes from getting out of hand. As a practical matter, you can't cut taxes and raise expenditures, simultaneously without at some point getting into a frightful fiscal mess and I expect this fact of life to be recognized before too long. Rightly or wrongly we are going to cut taxes and out them substantially. - All the best people are for it, though there must be at least a dozen different formulas on how it should be done. Even those who not so long ago were complaining of "public squalor and private affluence" are now vying with one another to reduce our revenue- gathering capability. You can be assured that this frame of mind will not last long because it supports a strategy which is es- sentially nonviable. I like to say that I do not make many forecasts, and actually I do not. But I am prepared to make one for you tonight. My forecast Is that you will hear a lot more about Federal expenditure control before you hear less. And there is more than an even chance that the idea, ancient as it is, will win a new respectability when it is adopted, as I expect it will be, by the Presi- dent's own administration, an event to which I look forward eagerly. And when this piece of ancient thinking has been lifted, as the saying goes, into the 20th century, and put into practical effect, I do not expect it to be followed by unem- ployment. Nor do I expect it to cause a recession, let alone two recessions. And I do not expect it to promote an accelerated outflow of gold. On the -contrary, I would expect it to bring benefits not just to us but to all'our friends around the world who look to us, more than to anyone else, to maintain a sturdy, unimpeachable fiscal position and a free society. obvious the investigation was designed to support conclusions determined before the investigation began. The unfair- ness of the investigation is demonstrated by the fact that not a single U.S. marshal was invited to testify about the facts which led up to the riot of the University of Mississippi last September 30. I do not. believe the people of this country will be fooled by the findings of the Mississippi Legislature, but will In- stead prefer to believe the eyewitness ac- counts of the riot quoted in a statement issued by officials of the Department of Justice in response to the report of the Mississippi Legislature. Mr. President, I ask unanimous con- sent that this statement issued May 8, 1963, be printed in the RECORD at this point as part of my remarks. There being no objection, the state- ment was ordered to be printed in the RECORD, as follows: STATEMENT BY THE DEPARTMENT OF JUSTICE, MAY 8, 1963 Like its predecessor, this report is based on selected testimony from selected wit- nesses. It is characterized by bias, factual errors, and misstatements. The major criticism seems to be the charge that the Attorney General sent the marshals to the University of Mississippi as a politi- cal move. This does not make much sense. What the report fails to point out and what the members of the committee are aware of is that the arrangement to put Mr. Meredith on the campus was made by Governor Bar- nett. Not only was the presence of the mar- shals at the University of Mississippi ar- ranged for by Governor Barnett, but the number of marshals also was approved by Governor Barnett. It was Governor Barnett also who said that he and the State of Mississippi would maintain law and order. The marshals went to the university to uphold final Federal court orders for Mr. Meredith's immediate admission to the uni- versity. The necessity of Federal interven- tion to enforce those orders is not ques- tioned by the report. As for what touched off the riot, the eye- witness accounts of the many newsmen who were present but not -called to testify by the committee-provide an objective evalua- tion. Mr. Sterling Slappey wrote, in U.S. News & World Report: "Gradually, as the hours passed, the crowd began to grow meaner. People-spat at the marshals. They - flipped lighted cigarettes atop the canvas covers of the big convoy trucks. Somebody tossed a burning news- paper onto one of the trucks, but it was quickly snuffed out. Somebody else grabbed a fire extinguisher and squirted it in the face of a Negro truckdriver. - "This was the mood when President Ken- nedy's voice started coming over the radio- at 8 p.m., Oxford time. The President was calling for order and calm. But as he spoke, the campus exploded in violence. "A length of heavy pipe came hurtling through the air. It struck a marshal's hel- meted head. As though on signal, there erupted a rain of rocks, bricks, bottles-any- thing that could be thrown. The calm turned to chaos. "The marshals stood their ground. Soe body ordered us newsmen to get,put^fff- the line of fire, and the marsh ala_q Tii d up with tear gas-the first round of a barrage that was to go oh repeatedly for hours." Another reporter, Mr. Tom Lankford, of the. Birmingham News, described the scene i'n these words: proposition to the effect that unemployment follows budget cuts or by assertions that REPORT OF MISSISSIPPI LEGISLA- there is a necessary connection between TUBE ON EVENTS AT UNIVERSITY budget cuts (if we were in fact talking about budget cuts) and unemployment such that OF MISSISSIPPI - a $5-billion cut, which _ the President has Mr. YOUNG of Ohio. Mr. President, cited, would necessarily produce a loss of 1 million jobs. Nor sliould,we~be dissuaded it is not surprising that the Legislature from a sensible program of expenditure con- of the State of Mississippi concluded its tainment and control-and by this I do not recent- investigation of the tragic events mean just turning down preliminary agency 'which surrounded the admission of and department requests from the inflated, James Meredith to the University of figures which they normally put forward, Mississippi by placing the entire blame but by holding actual budget expenditures on the Attorney General and a coura- reduce a level wlilel},consistent with our wish to reduce taxes, is within our Xlgcal capability- geous group of U.S. marshals who car- by a theory to the effect that a reduction in Tied out their duty to enforce the lawful the rate of Federal purchases o'defense orders of the Federal court. It is c the Approved For Release 2007/03/02 CIA-RDP67B00446R0006000900337-1 - Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1 7722 CONGRESSIONAL RECORD - SENATE "It was obvious to us that this was no pep rally, no demonstration that would break up soon. The shrieks were getting louder, more intense. Students and persons in the crowd were armed. There were rocks. Molotov cock- and weapons." MENT OF BILL FOR NEEDED FOR- EIGN AFFAIRS ACADEMY Mr. YARBOROUGH. Mr. President, our country now has 32,000 key Govern- ment people looking after our interests in foreign countries, not including mili- tary personnel. They are from the State Department, Agency for International Development, U.S. Information Agency, Commerce, Agriculture, Labor, and other departments. They are diplomats, at- taches, technical advisors, teachers and conferees on foreign policy. They are among the top group of peo- ple responsible for our national security. Our cold war against communism is de- pendent to a large degree on their capa- bility. That is why I am cosponsor with the distinguished senior Senator from Mis- souri [Senator SYMINCTONI of a bill to set up a National Academy of Foreign Affairs, for the specialized training of our American people on missions over- seas. This academy would be a university- like school to handle up to 1,500 trainees for foreign service work with a faculity of about 600 full-time and part-time pro- fessors. Besides specialized training for the jobs our key people are doing in 127 foreign countries and states, the Aca- demy would provide research on foreign service and foreign policy programs look- ing Into the future. Foreign language instruction would be a major task for the academy. Train- ing in language and other fields of learn- ing In foreign affairs would be provided not only for the Government employees, but for his family as well in certain cases. Now while this would be a grad- uate school, it would have specialized classes for the whole family of a Gov- ernment employee who is going to live among the people, so that his entire fam- ily would learn the language and learn the way of life in order that every mem- ber of that family would, in a sense, be a diplomat for the American people I ask unanimous consent that the edi- torial "Foreign Affairs Academy" from the New York Times of May 9, 1963, supporting this legislation be inserted in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: FOREIGN AFFAIRS ACADEMY The old idea that governmental interest in foreign affairs was limited to the State Department and to the Armed Forces has pile, is todf rned with the impact of the Europeans mo , Market on the chick- en industry of De awa aL? Virginia. The Department of Commerce ftibit"be'alert now to the changing climate for er can III- world. The Agency for International V&__ velopment has the entire underdeveloped area of this planet as the domain of Its ac- tivities, and the US. Information Agency seeks to bring the American point of view to the attention of peoples In every land. Such examples could be multiplied many times. Against this background, It is puzzling that the U.S. Government has up tonow had no central institution for advanced in-serv- ice training of Its personnel concerned with foreign affairs, and for research related to such training as well as to foreign policy generally. Efforts are now underway to correct this anomaly through establishment of an Academy of Foreign Affairs. A bill to this end is now before Congress. The proposed Academy would be a cen- tral foreign affairs training and research in- stitute for the Government, performing for the civilian agencies work somewhat analo- gous to that now done for the Armed Forces by the National War College. The bill ought to be approved at this session of Congress so that the Academy could go Into opera- tion as soon as possible. RUMANIAN INDEPENDENCE DAY. 10TH OF MAY, OCCASION TO RE- NEW HOPE FOR THE OPPRESSED Mr. YARBOROUGH: Mr. President it is with a feeling of sadness that i speak today on what is regretfully be- coming an annual duty-the duty to commemorate a Rumanian independ- ence that no longer exists. Each year as Members of this deliberative body comment on the 10th of May, the na- tional holiday of the Rumanian people since they won their Independence on that date In 1877, there is the hope an- other year will bring new hope to an oppressed people. Each year we note with sadness that a nation that has known the dignity of freedom, now groans under the yoke of oppression. Today, the people of Ru- mania are not free to observe their own national holiday. But there are Ruman- ians around the world who have found a measure of freedom, and who remember the loved ones they left behind, sealed behind the Iron Curtain that reached out and engulfed them when they were weakened by the effects of World War II. The Rumanians, before they fell to the Communists, had carried forward the industrious spirit that had brought prosperity to ancient Rome and later to their ow country. The sons of the Romans have the endurance and will to independence of their forebears. I wish to assure the Rumanian people that our interest in their plight as an enslaved nation under the Communist guns, has not dimmed with time, nor will it ever. I express the hope that the spirit of independence will remain vi- brant in the hearts of those who treasure freedom, and that Rumania will arise free from the shackles that now bind them. Long live the Rumanian people. MRS. ANITA BREWER, NIECE OF' TEXAS' STANLEY WALKER, WINS HONOR IN JOURNALISM Mr. YARBOROUGH. Mr. President, the life of one of this country's great writers. Stanley Walker, of Texas, came to a- tragic end on Sunday, November 26, 1962. May -9 Stanley Walker gained fame as city editor of the Herald-Tribune in New York and as a writer of books which en- joyed wide popularity. He became a legend in his own lifetime and com- manded tremendous respect within his professionand from his readers. One of the persons deeply touched by the death of Stanley Walker was his niece, Mrs. Anita Brewer, an able re- porter on the staff of the American Statesman in Austin, one of the out- standing news reporters of Texas. Mrs. Brewer was assigned to the story. Her article is a moving tribute to a man who held the affection of legions of readers. As a consequence, she won the first Ex- cellence In Journalism Award ever pre- sented by the Texas Institute of Letters, an award established by the Houston Post in honor of Stanley Walker. It was a worthy bestowal on a worthy person. I ask unanimous consent that the story of the award entitled "Anita Brewer Given Award" -from the American Statesman of February 17. 1963, and the story of Stanley Walker's death from the Austin*American of November 26, 1963, be placed in the RECORD at this point. There being no objection, the articles were ordered to be printed in the RECORD, as follows: [From the Austin (Tex.) American-States- man, Feb. 17, 19831 EXCELLENCE AGAIN: ANrrA BREWER GIVEN AWARD Anita Brewer, American-Statesman report- er who is no stranger to prizes, has won the first excellence in journalism award presented by the Texas Institute of Letters. Frederic Will, also of Austin and a mem- ber of the University of Texas classical lan- guages faculty, won the best book of poetry $100 prize for his "A Wedge of Words" pub- lished as part of the university's tower series. Another Austinite, Miss Jo Alys Downs, was cited for her work as typographical de- signer for John Biggers' book, "Ananse," which won the $50 prize given by the Dallas Museum of Fine Arta for best book design. It was published by the University of Texas Press. Biggers Is art department chairman on the Texas Southern University faculty in Houston. He won the award for his African drawings. The institute presented $3,050 in literary prizes at Its annual dinner Saturday night at the Meager Hotel in San Antonio. Three of the authors-Katherine Anne Porter, who won the $1,000 beat work of fiction prize, Will and Biggers-were hon- ored at Austin's own Writers Roundup in October. Mrs. Brewer's prize-winning story, "Death Takes Noted Author," won the Headliners' Award for writing under pressure of a dead- line February 2. The $250 Institute of Letters Award for ex- cellence in journalism was presented by the Houston Post and establishes a new category of prizes. It honors the late Stanley Walker, Texas newspaperman who became a legend in New York City as city editor of the Herald Tribune. Mrs. Brewer, winner of the first Stanley Walker Memorial Award, wrote the story within minutes after she learned of her uncle's death at his ranch home near Lampasas. The story was well written_ though done under pressure, muyiag-+'et detached" the selccUpjmL tree said in its report to the =sfRiifi of Letters. Mien Porter, a native of central Texas, was named the year's best fiction writer for Approved For Release 2007/03/02 : CIA-RDP67B00446R000600090033-1