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Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD - HOUSE August 24, 1958, and that when they adjourn on said day, they stand adjourned sine die. The SPEAKER. The question is on the resolution. � The resolution was agreed to. LEAVE OF ABSENCE By unanimous consent, leave of ab- sence was granted to: Mr. BROOMFIELD (at the request of Mr. MARTIN) indefinitely, on account of offi- cial business. Mr. KITCHIN for Monday, August 25, 1958, on account of request by chairman of Armed Services Committee to repre- sent him at ceremonies in New York City for crew of Nautilus. � EXTENSION OF REMARKS By unanimous consent, permission to extend remarks in the Appendix of the RECORD, or to revise and extend remarks, was granted to: Mr. MILLS to extend his remarks in the body of the RECORD on H. R. 13580. Mr. SIMPSON of Pennsylvania to extend his remarks in the body of the RECORD on H. R. 13580. Mr. REECE of Tennessee to extend his remarks in the body of the RECORD at the conclusion of the legislative business of today and to include extraneous matter. Mr. TALLE in six instances and in each to include extraneous matter. Mr. TABER and to include two tables prepared by him. Mr. MACHROW-ICZ and include an arti- cle notwithstanding it exceeds the limit and is estimated by the Public Printer to cost $425.25. Mr. KEATING to extend his remarks prior to the adoption of the conference report on H. R. 11477. Mr. WALTER and to include report of the Conference of Chief Justices, which is estimated by the Public Printer to cost $405. � Mr. GROSS to revise and extend the re- marks he made during the consideration of the conference report on H. R. 13247. Mr. KEATING... Mrs. Sr. GEORGE. � Mr. BYRNES of Wisconsin and to in- clude a table. Mr. HAYS of Ohio in three instances. Mr. GRAY in two instances and to in- clude extraneous matter. Mr. LAIRD in five instances and to in- clude tables and extraneous matter. � ENROLLED BILLS AND JOINT RESOLUTIONS SIGNED Mr. BURLESON, from the Committee on House Administration, reported that that committee had examined and found truly enrolled bills and joint resolutions of the House of the following titles, which were thereupon signed by the Speaker: H. R. 109. An act to incorporate the Jewish War Veterans, U. S. A., National Memorial, Inc.; H. R. 469. An act to protect producers and consumers against misbranding and false advertising of the fiber content of textile fiber products, and for other purposes; . No. 148-30 17989 H. R. 1061. An act to amend title 10, United .....vancing the date for submission of the re- States Code, to authorize the Secretary of vised estimate of cost of computing the In- terstate System and to extend the approval of such estimate for an additional year; H. R. 12858. An act making appropriations for civil functiOns administered by the De- partment of the Army, certain agencies of the Department of the Interior, and the Ten- nessee Valley Authority, for the fiscal year ending June 30, 1959, and for other purposes; ' H. R. 13247. An act to strengthen the na- tional defense and to encourage and assist in the expansion and improvement of educa- tional programs to meet critical national needs: and for other purposes; H. R. 13450. An act making supplemental appropriations for the fiscal year ending June 30, 1959, and for other purposes; H. R. 13475. An act to authorize an ex- change of lands at the Rochester Fish-Cul- tural Station, Indiana; H. It. 13580. An act to increase the public debt limit; H. R. 13678. An act to provide in the De- partinent of Health, Education; and Welfare ' for a loan service of captioned -films for the deaf; H. R. 13861. An act to repeal certain pro- visions of law relating to messengers for the Committee on Ways and Means of the-House of Representatives; H. J. Res. 635. Joint resolution for the re- lief of certain aliens; and " H. J. Res. 648. Joint resolution providing for a joint session of Congress for com- memorating' the 150th anniversary of the birth of Abraham Lincoln. Defense and the Secretaries of the military departments to Settle certain claims for dam- age to, or loss of, property or personal injury or death, not cognizable under any other laws; H. R. 1494. An act for the relief of the Southwest Research Institute; H. R. 1684. An act for the relief of William Franklin Rollins; ' � H. it 1695. An act for the relief of Harry N. Duff; H. R. 3366. An act to validate overpayments of pay and allowances made to certain officers of the Army, Navy, Naval Reserve, and Air Force, while undergoing training at civil- ian hospitals, and for other purposes; H. R. 3368. An act to amend section 1870 of title 28, United States Code, to authorize the district courts to allow additional peremptory challenges in civil cases to multiple plaintiffs as well as mutlipel defendants; H. R. 3571. An act for the relief of Boris F. Navratil; H. R. 4073. An act for the relief of Peter James O'Brien; H. R. 4642. An act to establish a Com- mission and Advisory Committee on Inter- national Rules of Judicial Procedure; H. R. 6282. An act for the relief of the former shareholders and debenture note holders of the Goshen Veneer Co., an Indiana corporation; H. R. 7710. An act to provide for the lump- sum payment of all accumulated and current accrued annual leave of deceased employees; H. R. 7860. An act to amend section 1 of the act of July 24, 1956 (70 Stat. 625) , en- titled "To provide that payments be made to certain members of the Pine Ridge - SiouX Tribe of. Indians as reimbursement for dam- ages suffered as the result of the establish- ment of the Pine Ridge aerial gunnery range"; H. R. 8943. An act to amend titles 10, 14, and 32, United States Code, to codify recent military law, and to improve the code; H. R. 9258. An act for the relief of Mrs. Minnie Perreira; H. R. 9262. An act for the relief of the estate of A. A. Alexander; H. R. 9370. An act to perinit illustrations and films of United States and foreign ob- ligations and securities under 'certain cir- cumstances, and for other purposes; H. R. 9700. An act to consolidate into one act all of the laws administered by the Vet- erans' Administration, and for other pur- poses; H. R. 9817. An act relating to -venue in tax refund suits by corporations; H. R. 9950. An act for the relief of D. A. Whitaker and others; H. R. 10473. An act for the relief of Hipo- lito C. DeBaca; H. R. 10495. An act to amend that part of the act of June 9, 1896 (29 Stat. 313) , relat- ing to the establishment of poStal stations and branch post offices, so as to permit them to be established within 10 miles of the boundary of the adjoining city; H. R. 11668. An act to amend section 39 of the Trading With the Enemy Act of Oc- tober 6, 1917, as amended; H. R. 11889. An act to permit articles im- ported from foreign countries for the pur- pose' of exhibition at the Minnesota State Fair and Centennial Exposition to be held at Saint Paul, Minn., to be admitted with- out payment of tariff, and for other purposes; H. R. 12126. An act to provide further pro- tection against the introduction and dissem- ination of, livestock diseases, and for other purposes; H. R. 12226. An act to amend the Virgin Islands Corporation Act (63 Stat. 350) , and- for other purposes; H. R. 12808. An act to amend the Federal- Aid Highway Act of 1956 and 1958 by ad- ADJOURNMENT Mr. BOYLE. Mr. Speaker, I move that the House do now adjourn. The motion was agreed to. The SPEAKER. In accordance with the provisions of Senate Concurrent Resolution 123, the Chair declares the 2d session of the 85th Congress ad- journed sine die. Accordingly (at 2 o'clock a. m., Sun- day, August 24, 1958) the House ad- journed sine die. EXECUTIVE COMMUNICATIONS, ETC. 2258. Under clause 2 of rule XXIV, a letter from the Assistant Secretary of the Navy (Financial Management) , transmitting a report of all claims for damage caused by naval vessels which have been paid during the fiscal year ending June 30, 1958, pursuant to sec- tion 7624 (b) of title 10, United States Code, was taken from the Speaker's table and referred to the Committee on the Judiciary. REPORTS OF COMMITTEES ON PUB- LIC BILLS AND RESOLUTIONS Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and reference to the proper calendar, a:s follows: Mr. O'BRIEN of New York: Committee on Interior and Insular Affairs. H. R. 49. A bill to provide for the admission of the State of Ha-waii into the Union; with amendment (Rept. No. 2700). Referred to the Commit- tee of the Whole House on the State of the Union. Mr. O'BRIEN of New York: Committee of conference. H. R. 12226. A bill to amend the Virgin Islands Corporation Act (63 Stat. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 17990 CONGRESSIONAL RECORD � HOUSE 350), and for other purposes (Rept. No. 2701). Ordered to be printed. Mr. WALTER: Committee of conference. H. R. 11477. A bill to amend chapter 223 of title 18, United States Code, to provide for the admission of certain evidence, and for other purposes (Rept. No. 2702). Ordered to be printed. Mr. LANE: Committee of conference. H. R. 4059. A bill for the relief of Mr. and Mrs. Carmen Scoppettuolo (Rept. No. 2703). Ordered to be printed. Mr. PASSMAN: Committee of conference. H. R. 13192. A bill making appropriations for Mutual Security for the fiscal year end- ing June 30, 1959, and for other purposes (Rept. No. 2704). Ordered to be printed. PUBLIC BILLS AND RESOLUTIONS Under clause 4 of 'rule XXII, public bills and resolutions were introduced and severally referred as follows: By Mr. BROYHILL (by request) : H. R. 13867. A bill to define the status of retired officers of the Armed Forces, and for other purposes; to the Committee on Armed Services. By Mr. FULTON: H. R. 13868. A bill to amend section 1332 of title 10 of the United States Code to per- mit the transfer on a limited basis of points earned in 1 year to other years; to the Com- mittee on Armed Services. H. R. 13869. A bill to provide for the rep- resentation of indigent defendants in crimi- nal cases in the district courts of the United States; to the Committee on the Judiciary. By Mr. IKARD: H. R.13870. A bill to amend section 7 of the act of August 18, 1941, to provide that 75 percent of all moneys derived by the � August 23, 1958 United States from certain recreational ac- perialism; to the Committee on Foreign Af- tivitiee in connection with lands acquired , fairs. for flood control and other purposes shall be paid to the State; to validate certain payment; and for other purposes; to the MEMORIALS Committee on Public Works. By Mr. MULTER: H. R. 13871. A bill to amend the Federal Credit Union Act; to the Committee on lows: Under clause 4 of rule XXII, memo- rials were presented and referred as fol- Banking and Currency. By Mr. FULTON: ' H. R. 13872. A 'bill to provide pension for� Widows and children of veterans of World War II and of the Korean conflict on the same basis as pension is provided for widows and children of veterans of World War I; to the Committee on Veterans' Affairs. H. R. 13873. A bill to amend the Internal Revenue Code to provide that amounts ex- pended to acquire subsurface coal to protect the taxpayer's residence from damage by removal of the coal shall be treated as casualty losses; to the Committee on Ways and Means. H. R.13874. A bill to provide for assistance to States in their efforts to promote, estab- lish, and maintain safe workplaces and practices in industry, thereby reducing hu- 'man suffering and financial loss and increas- ing production through safeguarding avail- able manpower; to the Committee on Edu- cation and Labor. � H. R. 13875. A bill to increase the monthly rates of pension payable to widows and chil- dren of World War I, World War II, and Korean conflict veterans; to the Committee on Veterans' Affairs. By Mr. GUBSER: H. Con. Res. 381. Concurrent resolution ex- presSing the sense of the Congress that the United States in its international relations should maintain its traditional policy in op- position to colonialism and Communist im- By the SPEAKER: Memorial of the Legis- lature of the Territory of Guam, memorial- izing the President and the Congress of the United States requesting that the Organic Act of Guam be amended so as to provide that the legislature may override with fi- nality, the veto of the Governor of Guam; to the Committee on Interior and Insular Affairs. PRIVATE BILLS AND RESOLUTIONS Under clause 1 of rule XXII: Mr. COLLIER introduced a bill (H. R. 13876) for the relief of Mutsuko Miyaji, which was referred to the Committee on the Judiciary. PETITIONS, ETC. Under clause 1 of rule XXII, petitions and papers were laid on the Clerk's desk and referred as follows: 736. Mr. ROBISON of 'New York: Petition of Harold C. Bryant and others favoring pas- sage of S. 582 and H. R. 4835; to the Commit- tee on Interstate and Foreign Commerce. '737. By Mr. MOULDER: Petition of the Missouri Department of the Veterans of World War I, U. S. A, Inc., urging passage of H. R. 2201; to the Committee on Veter- ans' Affairs. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63100245R000400220003-3 , [Senate proceedings continued from p. 17899] MUTUAL SECURITY Mr. O'MAHONEY. Will the Senator yield for two insertions? Mr. PROXMIRE. I yield, provided do not lose the floor. Mr. O'MAHONEY. Mr. President, be- cause of a House-Senate conference to- day, I was unable to speak upon the Mutual Security Appropriation bill. I therefore ask unanimous consent that my statement may be printed in the RECORD. There being no objection, the state- ment was ordered to be printed in the RECORD, as follows: THE UNITED STATES IS LIVING BEYOND ITS MEANS AND CANNOT SUCCESSFULLY SUPPORT THE WORLD ON DEFICIT SPENDING The United States is living beyond its means. This solemn fact should be printed in red letters on the front page of every newspaper in the country. It should be broadcast every hour, on the hour, from every radio and television station in America. For, if Congress allows these extraordinary expenditures to continue, the country will not only be unable to support the world, it may be unable to support itself. DEBT Lnurr INCREASED TWICE THIS YEAR I say the Nation is living beyond its means and I make this statement not as a critic of the administration but as a Senator of the United States who has read the testi- mony of the Secretary ci the Treasury Rob- ert B. Anderson before the Finance Commit- tee on August 15 last. Twice within this year Secretary Anderson acknowledged that he has appeared before the committees of Congress to ask for an increase of the statu- tory limit on the public debt. These are his words: "I appeared before this committee last January to urge the enactment of a bill to provide a temporary increase of $5 billion in the statutory limit on the public debt. The bill was enacted and approved on Feb- ruary 26, 1958 and provides a temporary Increase from $275 billion to $280 billion until June 30, 1959." Last night this Senate, in response to the President's second request on July 28, passed the bill increasing the permanent (not the temporary) debt limit to $283 bil- lion, so that the overall debt limit, now that this bill has been agreed to by the House, will be $288 billion. Although $5 billion of this will be tempor- ary through June 30, 1959, nevertheless at this moment the new debt limit for this fiscal year is fixed at the figure requested by the President, namely $288 billion. Twice in 1 year, because we have been spending more money than we can raise by taxation, we have authorized the Treasury Depart- ment to borrow $10 billion more than the $275 billion ceiling of last January. Thus It is clear that we are living beyond our means. Secretary Anderson has explained the rea- son so that nobody need be in doubt. He told the Finance Committee a week ago yester- day that the Treasury could "no longer op- erate with a $5 billion temporary extension of the $275 billion limit because we cannot look forward o a debt of $275 billion or Senate less on June 30, 1959. The estimated deficit will result in the public debt outstanding on June 30, 1959, of nearly $285 billion." CUT IN MUTUAL-SECURITY FUNDS COULD REDUCE DEFICIT The mutual-security program offers an op- portunity for economy by which this deficit can be at least partially reduced. Con- demned as it is by the General Accounting Office as wasteful and ineffective in many of its aspects, Congress Must think twice, in- deed should think ,a dozen times, before fur- ther risking the substance of this country in programs, particularly of military, expendi- ture, in foreign countries over which Con- gress can and does exercise little, if any, con- trol. If we would lead the world to freedom It must be by husbanding our own resources Instead of wasting them in enterprises we eannot supervise. The appropriations in the mutual-security program are made to the President in name, but the expenditure of these moneys is made by subordinate em- ployees here and abroad whose activities are actually beyond our control. OUR INCOME LAGS BEHIND EXPENDITURES Secretary Anderson made it clear that ever since 1954 public-debt obligations were being issued by the Treasury Department "in ex- cess of the permanent debt limit." The De- partment was hoping that the excess ex- penditures could be repaid from tax collec- tions prior to the expiration., of the tempo- rary debt ,limit, Secretary Anderson said, but then added "in the situation we now face that is not the case." In other words, it is the testimony of Secretary of the Treasury Anderson to the committee, to the Congress, and to the country that tax collections now foreseeable are not enough to pay the ex- penditures we are currently making. ANOTHER DEBT LIMIT INCREASE LOOMS The country doesn't know it, but secretary , Anderson knows it, and he told the Finance Committee on August 15 that "we should bear in mind that at current rates of ex- penditure the Treasury is spending approx- imately $1,500,000,000 on every 5 working days." Then he added, "With increased ex- penditures contemplated, for next year these expenditures would increase. It would ap- pear that the only sound course at the pres- ent time is to permanently increase the statutory limit to $285 billion." Then he added that a further increase of $3 billion was desirable to provide a margin for con- tingencies. CONTINGENCIES ARE PROVIDED FOR IN FOREIGN , SPENDING Let it be remembered that in the mutual security bill before us, there is a contingency fund for expenditure by the President of $155 million, whereas there was no such appro- priation in the mutual security appropria- tion bill for 1958. The only explanation of this contingency fund for mutual security contained in the President's request or the report of the committee is that it is intended to meet situations "which can be foreseen but withput certainty as to the amount which may be necessary," as well as to con- tingencies which cannot be foreseen. The contingencies which face the Treasury are more important to the people of America and to the people of the world than the con- tingencies for which provision is made in the mutual security bill. This I say, be- cause it must be apparent to anybody who is willing to look atv the facts, that the-decline in our revenues is actually a threat to our survival. REVENUE IS DROPPING Don't take it from me. Take it from Secre- tary Anderson. This is what he told the Finance Committee: "Now the deficit whieh has occurred at the end of this fiscal year is essentially brought about by a decline in revenues. "In January we estimated there would be .$72.4 billion of revenue. The revenues which have been collected thus far are $69.1 billion. * * * Now the deficit which is anticipated for fiscal 1959 is represented generally by a de- cline of $7 billion in estimated revenue re- ceipts, and about $5 billion in increased expenditures over the budget estimates." All this was apparent last fall when the re- cession began. Profits were declining. The economic situation was worsening and yet, when the President's budget was submitted in January, despite all the warnings, an increase in revenues was predicted. Secre- tary Anderson has acknowledged that an in- crease of $3 billion in tax receipts, as com- pared to the previous year, was predicted. And so the deficit of not less than $2.8 bil- lion was apparent at the end of fiscal 1958, and a deficit of $12 billion is now predicted for the end of 1959. WE PAY FOR FOREIGN AM WITH DEFICIT SPENDING In the light of this huge deficit predicted by the Secretary of the Treasury, we are ' asked to support a mutual security bill which � increases the appropriation for fiscal 1959 by' more than $749 million over the appropria- tion for fiscal 1058. Does anybody doubt that deficit spending is inflationary? Secretary -Anderson acknowledges� that it is. This is what he told the Finance Committee a week ago yesterday. "A deficit is certainly on the inflationary side, and a continuation of de- ficits would b& more inflationary than a single deficit." With clear insight into the gravity of the fiscal situation in which we find ourselves, Secretary Anderson then said: "I think what this country has got to realize is that it must pay its bills, and that whatever is required we must not allow either inflation or defla- tion in this country to run a ruinous course." OUR EXPENSES CLIMB Does anybody doubt that the effects of in- flation are with us? Yesterday the Bureau of Labor Statistics in the United States De- partment of Labor, under Secretary Mitchell, issued a statement on the Consumer Price Index for July 1958. That's last month. "Consumer prices," it said, "in United States cities, increased 0.2 percent by the end of July 1958." This included higher prices for transportation, food, and medical care. This Is acknowledged by the Department of Labor to be an increase of 2.6 percent abOve that of July last year. ' It is 23.9 percent above the average for the years 1947-49. DEFENSE SUPPORT INCREASES It is clear, therefore, that as we deal with this mutual security appropriation; namely, a total of $3,518,092,500 as reported by the committee, we are dealing with an increased expenditure of almost three-fourths of a bil- lion dollars, and an examination of the de- tails of this expenditure reveals extraordi- nary and appalling facts. For example, we are asked to appropriate $790 million for de- fense support. Although this is $45 million under the estimates submitted by the Presi- dent, it is $65 million above the appropria- tions for 1958 and is $90 million above the House appropriation. The money will be 17991 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 17992 � CONGRESSIONAL RECORD� SENATE August 23 expended in 12 different countries: Spain, Greece, Iran, Turkey, Pakistan, Cambodia, Korea, Laos, Philippines, Taiwan, Thailand, and Vietnam. The amounts which these countries will receive individually, however, is classified. The people of the United States are denied knowledge of where, when or how the money from an empty treasury will be expended for defense support abroad. The last appropriation bill for mutual security provided $300 million -for the De- velopment Loan Fund. The President asked for $625 million, more than twice what was used a year ago. The House recommended $300 million. The Senate committee has in- creased this by $280 million. WE GUARANTEE INVESTMENTS ABROAD In appraising this appropriation we must take into consideration the fact that under the terms of the mutual assistance program this country, with its deficit of $2.8 billion for' fiscal 1958 and its estimated deficit of $12 billion for fiscal 1959, will be guaranteeing to United States investors abroad that the cur- rency they receive in foreign countries can be converted into dollars. More than that, the program is to guarantee that the United States will compensate these investors against any losses due to expropriation, and finally against losses due to war damage. As of September 30 last the total guaranties outstanding amounted to more than $176 million. CONGRESS IS BYPASSED IN LOAN PROGRAM Let us not forget that the.United States is living beyond its means. We have that on the word of the Secretary of the Treasury. How then can we undertake to extend these guaranties for payment in dollars for a pro- gram which Secretary Dulles himself testified would involve a- great risk? His statement will be found on page 5 of the Foreign Re- lations Committee hearings of May 22, 1957, when Secretary Dulles explained the develop- ment loan program. He not only acknowl- edged that the Fund involves a great risk, but he said that the proposal to provide an initial appropriation and borrowing was a "new approach" which "we contemplate requires that we get away from annual authorizations or appropriations." 'Here is a plain assertion by the Secretary of State that he wants to be bothered no longer with securing authorizations or annual appro- priations from the Congress of the United States which, under the Constitution, is the custodian of the funds belonging to the people. Mr. Dulles would like-to spend these funds in lump sums without detailed ex- planation. As a matter of fact, when the mutual security law was passed a year ago, it was clearly provided that the report of the manager of the fund should be made only after the consummation of a transaction and not before the financing operation was undertaken. SUCH SPENDING RESULTS IN INFLATION Appropriating money to be expended in such a manner is only an invitation to con- tinued inflation. It is easy to report from the testimony of the Department of Defense that the cost of building and operating the weap- ons of defense is constantly increasing. Only last March Assistant Secretary of Defense W. J. McNeil, addressing various business groups, described the expensive impact of technological progress on the defense budget. For example, he said: "With one or two ex- ceptions there is hardly a production model aircraft on the Air Force's 1959 procurement list that was included in the 1955 program. All the fighters and bombers proposed for 1959 procurement will be capable of super- sonic speeds and the employment of guided missiles and nuclear weapons. Of the $1.5 billion of aircraft, engines, and aeronautical equipment the Navy expects to buy in 1959, about 80 percent will go for models which were not being bought in production quanti- ties only 3 years ago. In 1959 over 40 percent of the Army procurement will be for missiles and related equipment, compared with ap- proximately 10 percent in 1955." PACKERS AND STOCKYARDS ACT Mr. O'MAHONEY. Mr. President, I ask unanimous consent that a statement I had prepared with respect to the Pack- ers and Stockyards Act, as amended by H. R. 9020, may be printed in the RECORD. There being no objection the state- ment was ordered to be printed in the RECORD, as follows: REMARKS OF SENATOR JOSEPH. C. O'MAIIONEY PACKERS AND STOCKYARDS ACT, AS AMENDED BY H. R. 9020, It AN IMPROVEMENT OVER PRESENT LAW Yesterday, on my motion, the Senate con- sidered and passed the bill H. R. 9020, which amended the Packers and Stockyards Act and the Federal Trade Commission Act. Time did not permit an extended debate on the important issues raised in this bill. How- ever, I could not permit the 85th Congress to come to a close without making a more detailed explanation of the reasons which impelled us to adopt the meat-packing bill passed by the House on August 12, 1958. HELD HEARINGS ON REASONS FOR PRODUCERS' SHRINKING SHARE OF CONSUMER DOLLAR This legislation is the culmination of hear- ings which I began in May 1956 when I was acting chairman of the Antitrust and Mo- nopoly Subcommittee. At that time, the precarious economic condition of farmers and livestock producers made it abundantly clear that effective legislation was needed to curb practices which reduced their share of the national income. Farm income in the United States had been declining. During the period 1947 -to 1956 farmers' cash receipts from the sale of livestock and livestock prod- ucts declined from $16.5 billion to $16.3 bil- lion. In this same period farm animal slaughter increased significantly. While prices received by the livestock producer de- clined 29 percent from-1947 to 1956, the re- tail cost of meat and meat products to the consumer declined only 5 percent. It was apparent that the spread between the price received by the producer and the price re- ceived by the retailer had widened, with the processer receiving the benefits of lower live- stock prices. The hearings which we con- ducted at that time to discover the reasons farmers and livestock producers were re- ceiving an increasingly smaller share of the consumer dollar immediately disclosed the basic inadequacies of the Packers and Stock- yards Act and the complete failure of the Department of Agriculture to enforce this act in such a way as to produce the maxi- mum benefits to livestock producers, meat- packers and the consuming public. SENATE BILLS INTRODUCED TO STRENGTHEN PACKERS ACT We quickly discovered that the large na- tional food chains had found loopholes in the Packers and Stockyards Act whereby they were able, through various devices, to qualify as meatpackers and, thus, com- pletely escape from the supervisory authority of the Federal Trade Commission, Senator WATKINS and I introduced separate bills in the 84th Congress, designed to plug this loophole in the law and to transfer juris- diction over meatpackers from the Depart- ment of Agriculture to the Federal Trade Commission. In the 85th Congress, Senator WAMINS and I joined in sponsoring the bill S. 1356, which, after long hearings and considerable study, and after some modification by the Committee on Agriculture, was ultimately adopted by this body on May 15 of this year. � From its inception, the bill has received the active and enthusiastic support of' certain_ small independent meatpacking companies who were suffering from the monopolistic practices of their large meatpacking com- petitors. Substantial groups representing livestock producers came forward in support of the bill. The National Wool Growers Asso- ciation, the National Milk Producers Asso- ciation, and the National Farmers Union, which speak for producers in many States, were vocal in their support. A substantial number of State organizations rallied behind the bill, including the Wyoming Stock Growers Association, the Utah and Idaho Wool Growers Associations, and the Utah Cattlemen's Association. Similar- strong support was voiced by important segments of the food industry, including wholesale grocers, milk producers, food' brokers, inde- pendent businessmen, consumer, supply, and service cooperatives, candy wholesalers, dry goods distributors, and the fishing industry. HOUSE BILL ACCEPTED RY SENATE In my opinion, S. 1356 represented the best solution possible to the difficult prob- lem of properly dividing jurisdiction over meatpacking activities between the Depart- ment of Agriculture and the Federal Trade Commission. However, the Committee on Agriculture in the House of Representatives ,reported out the bill H. R. 9020, subsequently passed by the House, which retained in the , Department of Agriculture more jurisdiction 'over meatpackers than the bill adopted by the Senate. I have consistently expressed my preference for the meatpacking bill which was appro \fed by the Senate. How- ever, in the closing days of the Congress, it became apparent that because of the press of time it would not be possible to obtain a conference between the two Houses in an effort to obtain legislation similar to that endorsed by the Senate. Under the circum- stances, I felt that we could not afford to lose the benefits of all our efforts in the past 21/2 years by permitting the Congress to ad- journ without obtaining some legislation in this vital area. Accordingly, I discussed this measure with the other sponsors and sup- porters of the bill in the Senate, and with the leaders on both sides of the aisle, and we concluded that we should ask the Senate to give favorable consideration to H. R. 9020. BILL PLUGS TWO GAPING LOOPHOLES It has long been my experience in the leg- islative field that we make progress one step at a time. While I am certainly not in com- plete sympathy with the House bill, I recog- nize full well that it accomplishea many of the important objectives we sought to achieve when we first began our study of this prob- lem. I feel it is a long step forward in the direction of more effective antitrust enforce- ment,' The bill completely closes the loop- hole in the Packers and Stockyards Act whereby large national food chains have successfully escaped Federal Trade Commis- sion surveillance. This feature of the bill in itself is sufficient to justify its passage by the Congress at this time. With all the principal national food chains now qualify- ing as ,packers, and others rapidly gathering themselves under the protective umbrella of the Packers and Stockyards Act, the position of the independent retail and wholesale grocer throughout the United States was becoming increasingly perilous. The an- guished cries of these independent business men asking the Congress to subject their big- ger national competitors to uniform stand- ards of trade practices oblige the Congress to act now. The great number of groups and organiza- tions who have worked so diligently with the Senate committees in their efforts to enact needed legislation can take much comfort in realizing that their efforts have not been in vain and that legislation has been adopted Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000460220003-3 1958 CONGRESSIONAL RECORD � SENATE 17993 which rectifies many of the grave situations about which they complained. Since, the enactment of the Packers and Stockyards Act of 1921, all activities of the meat pack- ers, no matter how remote from their meat- packing activities, were under the exclusive jurisdiction of the Department of Agricul- ture. H. R. 9020 carefully limits jurisdiction of the Secretary of Agriculture over the ac- tivities of meat packers insofar as it relates to livestock, meats, meat food products, live- stock products in unmanufactured form, poultry or poultry products. The bill re- stores complete jurisdiction to the Federal Trade Commission to regulate the nonmeat activities of the large meat packers, such as the production and sale of pharmaceuticals, sporting goods, leather in various forms, and ,such unrelated items as salt, fertilizers, and ice cream confections. The hearings conducted by the Senate Antitrust and Monopoly Subcommittee laid bare the glaring inadequacies of, the Pack- ers and Stockyards Act 'and the failure of the Secretary of Agriculture to enforce the act against meatpackers. Because of the threat by this subcommittee of more strin- gent regulation, the large meatpackers through the American Meat Institute, were forced to recommend changes in the exist- ing law, and accordingly they agreed to the proposal permitting the Federal Trade Commission to have jurisdiction over their nonmeat , activities. The bill corrects another grievous defeat in the law which permitted manufacturers of oleomargarine to avoid Federal Trade I Commission jurisdiction under the Oleo- margarine Act. H. R. 9020 restores juris- diction to the Federal Trade Commission over transactions in oleomargarine. In ad- dition, the bill makes clear that retail sales of meat, meat-food products, livestock prod- ucts in unmanufactured form, and poultry products remain within the jurisdiction of the Federal Trade Commission. "HOT PURSUIT" PROVISION INCLUDED The Department of Agriculture in testi- mony before the Antitrust and Monopoly Subcommittee conceded that it had been lax in enforcing the unfair-trade practice pro- visions of the Packers and Stockyards Act against Meatpackers. The Department has now given its support to the so-called hot- pursuit provision contained in H. R. 9020, which permits the Federal Trade Commis- sion, for the purpose of perfecting its juris- diction at the retail level, to pursue its in- vestigation against meatpackers back to the wholesale level, provided the Agriculture De- partment does not have pending an investi- gation of, or a proceeding for, the preven- tiOn of a violation of the Packers and Stock- yards Act involving the same subject matter. Conversely, 9020 permits the Department of Agriculture to proceed in a similar manner against meatpackers down to the retail level if necessary to perfect its jurisdiction over wholesale transactions. In order to deter- mine whether the enforcement activities of either agency are being frustrated by the other, the bill provides that both the Secre- tary of Agriculture and the Federal Trade Commission shall include in their respective annual reports information with respect to their administration of the hot-pursuit provisions. PROCEDURE IS EXPERIMENT It is apparent that this procedure has cer- tain definite weaknesses. Nevertheless, sup- port of this provision is an acknowledge- ment by the Department of Agriculture that there is an area in the meatpacking field where there is need for antitrust enforce- ment by the Federal Trade Commission. In approving this procedure we recognized that this was an experiment, the success of which could be determined only after a trial and error period. Senator DIRKSEN stated on the floor yesterday that after the bill is passed, if any weaknesses develop, or if under the provisions of the bill a satisfactory, job is not done, he will join with me next yer in proposing ,improvements in the program. AGRICULTURE DEPARTMENT TO HAVE ENFORCE- MENT UNIT In an effort to ensure effective enforce- ment of the new law, the bill provides that the Secretary of Agriculture shall maintain within the Department of Agriculture a sep- arate enforcement unit to administer and enforce title II Of this act. Small independ- ent meatpackers can take much comfort from the fact that their testimony concern.;. ing the failure of Agriculture to police the activities of the large meatpackers has re- suited in legislation which requires the De- partment of Agriculture to set up a separate enforcement unit for the enforcement of title II of the Packers and Stockyards Act. AUTHORITY OF AGRICULTURE SECRETARY BROADENED Furthermore, section 2 of the act, which has had active support in both the Senate and House committees, strengthens the au- thority of the Secretary of Agriculture over stockyards under title III of the Packers and Stockyards Act by permitting him to control livestock transactions at auction yards and county buying points and by removing from the definition of stockyards the 20,000 square feet requirement. In this and other ways the Secretary of Agriculture -is authorized to correct 'Practices involving livestock transac- tions which now are escaping regulation. By the passage of this act we have given the Department of Agriculture all the tools which it has requested and which it has felt necessary in order to police effectively the unfair trade practices of the large national meatpackers. With the cooperation of the Department of Agriculture the Federal Trade Commission too will have an area of respon- sibility for dealing with meatpacker prob- lems. The Congress will maintain a careful scrutiny to determine whether the Agricul- ture Department has fulfilled its trust. The Antitrust and Monopoly Subcommittee will -continue its vigilant examination of meat- packing activities to ensure that large meat- packers comply with the same standards of trade practice required of all other in- dustries. REVIEW OF THE 85TH CONGRESS BY SENATOR THYE Mr. THYE. Mr. President, as the time for the adjournment of the 85th Congress draws near, I think we should take a look at our work to compare it with past performances and to have it serve as a guide for the future. In my estimation, this Congress has accomplished as much during the past 7 months as any session I can remember. It has been a construc- tive Congress. The record of its achieve- ment will stand high for years to come. The Senate has been very fortunate in having majority and minority leaders of extreme ability and distinction�Senator LYNDON B. JOHNSON and Senator WIL- LIAM F. KNOWLAND. Senator JOHNSON has demonstrated a fine spirit of cooper- ation. He is a reasonable 'man. His , course has been set by the principle of what is best for the country and' not what is best for any one group or faction. He has been a great coordinator, showing a rare ability to 'bring together diverse in- terests and working out acceptable and positive agreements. In all my expe- rience and contact with this great Texan, I (have never felt that he had anything but the best interests of the Nation at heart. Senator KNOWLAND has never failed to stand up for the little man�the small-. business man or the man who represents a minority interest or a little-recognized group. KNOWLAND has a vast compre- hension Of the legislative process. His knowledge is awe-inspiring, and he has worked honestly and four-square for our country. I sincerely believe that Sen- ator KNOWLAND is one of the most dedi- cated men in the Senate today, a man who has brought honor and stature to a great State. The Senate will suffer a great loss when Senator KNOWLAND re- - - tires, Both of these men represent the very finest in positive, brilliant leadership. It has been an honor to serve in the Sen- ate if only because of the opportunity to associate and learn from these men. I pay tribute to all members of the staff on the Senate floor, including the pages, and also the members of the staffs of the many cofnmittees Who serve the Senate. I would, of course, like to go on and commend each Senator, who has been a part of the 85th Congress, but my pur- pose is merely to�point to the highlights of this sessiOn in very short form. These include the admission of the Territory of Alaska as our 49th State, the creation of a new Space Agency, the creation of a Federal Aviation Agency to coordinate all air flight activities in the interest of air safety, the extension of the Reciprocal Trade Agreements Act, the reorganiza- tion of the Defense Department, and the strengthening of mutual security. A few of the other key legislative achievements include the increase of social-security benefits, tax relief for small business, salary increases for post- al and classified Government employees and many other constructive and worth- while laws.,Legislatin has been passed embody- ing the provisions of bills I introduced to continue the operations of Public Law 480, the extension of the school milk- pro- gram, equity financing for small-busi- ness concerns, tax relief for small busi- ness, continuation of the brucellosis- control program, to provide citizenship for alien orphans adopted by mission- aries, to provide for expanded research into the industrial uses of agricultural products, to facilitate prosecution of those who use the United States mails for distribution of obscene literature, to pay unemployment compensation to dis- charged servicemen. . I am particularly appreciative of the action taken to make the Small Business Administration a permanent agency. I was the author of legislation which es- tablished this agency in 1953, and I have continued since that time to urge that the agency be made permanent. Of particular interest to the State of Minnesota is the passage of my proposal to transfer certain Federal drainage lands to the State. Toward the end of this session we enacted a companion bill to my proposal to establish a Grand Portade National Monument in Minne- sota, and Congress has consented to a compact between Minnesota and the province of Manitoba concerning an in- ternational highway to the Northwest Angle. During this session we have also provided funds for planning the Bethel Air base at Bethel, Minn. Flood-con- trol funds have been provided for pro.j- Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 17994 CONGRESSIONAL RECORD � SENATE. � August 23 ects at Mankato, St. Paul, and Lost River. Funds also have been provided for commencing work on the Minnesota River navigation project. Provision hs also been made for the settlement of the so-called Lake of the Woods flood dam- age claims. The dollar limitation on the authority of the Secretary of the Navy to settle air-crash claims has been raised so that most-claims arising out of last year's Memorial Day plane crash in Minneapolis Can now be settled ad- ministratively. There is so much more to say. Now we should let these achievements speak for themselves. We will let the record speak for itself. It is a good record. It has been a good Congress. INCREASE IN DIVERSION OF WATER FROM LAKE MICHIGAN INTO THE ILLINOIS WATERWAY � Tile Senate resumed the consideration of the bill (H. R. 2) to authorize' the State of Illinois and the Metropolitan Sanitary District of Greater Chicago, under the direction of the Secretary of the Army, to test on a 3-year basis the effect of increasing the diversion of water from Lake Michigan into the Illinois Waterway, and for other purposes. Mr. PROXMIRE. Mr. President, the Senate of the United States and the al- most full galleries have been regaled and entertained by a magnificent speech de- livered by the Senator from Oklahoma. Probably no one in America can give a more amusing speech than the great Senator from Oklahoma. However, I think any kind of analysis of the speech of the Senator from Oklahoma would make it necessary to classify the great speech as a diversion from the point. I think I can prove that statement. I think I can prove that the bill under consideration is a bill which would do provable damage to the prorierty' of peo- ple- who live in other States. The bill under consideration simply cannot be justified as a health measure, which is the only possible justification to be put forward for the bill. Mr. President, before I discuss the merits of the bill I should like to point- out the peculiar circumstances under which similar bilis have always come be- fore the Senate. A bill similar to this Was brought be- fore the Senate in 1954. The date the bill was considered in 1954 was August 20. The bill was taken up by motion on adjournment night, about 30 minutes before adjournment. The bill was rushed through the Senate, and was passed by a voice vote. There was little opportunity for opponents to make a fight on the bill, because of course the Senate was about to adjourn. This kind of bill is not the earth-shak- ing kind we usually consider at adjourn- ment. Therefore, the bill moved along rapidly and was passed. The PRESIDING OFFICER. (Mr. PAsToRE in the chair). The Senator will suspend. Will those who desire to en- gage in conversation retire to the cloak- rooms? The Chair, will insist that the speaker be heard. The Senate will be in order. The Senator from Wisconsin has the floor and the Senator may proceed. Mr. PROXMIRE. Mr. President, a similar bill was again taken up for con- sideration in 1956. Again there was a motion to consider the bill on the very last night of the session. That is quite a coincidence. At that time the op- ponents made a strong fight and did the best they .could. Of course, the op- ponents were overwhelmed, because of the fact that the Senate was about to adjourn. The opponents did not have a chance to put into the RECORD a real case against the bill, which they could have put into the RECORD if there had been more time. The result was that the bill was passed, by a fairly, close vote. There was no opportunity to dis- cuss the bill in detail. This bill, I will say, has implications which are very complicated. It requires an extended discussion before the pro- visions of the bill can be fully under- stood and before one can prove the fact that the bill would do discernible dam- age and provable damage. It takes time to establish clearly the fact that the bill cannot be justified, based upon the pur- pose argued by the proponents -of the bill. Mr. President, I should like to invite the attention of the Senate to another point. There were hearings on the bill in the Senate. There were extensive hearings, the transcript of which covers 768 transcribed page's. I hold a copy of the hearings in my hand. These hear- ings have not been printed, although galley Sheets have been run and are available for a few Senators who are on the committee or who have a special in- terest and have asked for them. Contrary to the procedure with re- spect to most bills which come before the Senate, there is no opportunity for Senators to have copies of the hearings placed conveniently before them on their desks so that they can study the hear- ings. Mr. President, any Senator who stud- ies these 768 pages of hearings, who reads the hearings carefully in an ob- jective, way, haying no personal reason on the basis of the interest of his State to support the bill, will come to the con- clusion, I am convinced, that the bill should be opposed and should be de- feated. Mr. MAGNUSON. Mr. President, will the Senator yield? Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield to the Senator from Washington for 3 min- utes without losing my right to the floor. The PRESIDING OFFICER.' Is there objection to the request of the Senator. from Wisconsin? The Chair hears none, and-it is so ordered. INDEPENDENT OFFICES APPROPRI- ATIONS, 1959 MP. MAGNUSON. Mr. President, I ask the Chair, to lay before the Senate the amendments of the House of Rep- resentatives to the amendments of the Senate to�the independent offices appro- priation bill. The PRESIDING OFFICER laid be- fore the Senate a message from the House of Representatives announcing its action on certain amendments of the Senate to House bill 13856, which was read as follows: In the HOUSE OF REPRESENTATIVES, U. S. August '23, 1958. Resolved, That the House agrees to the amendments of the Senate Nos. 1, 2, 3, 4, 5, 6, 7, 9; 10, 11, and 12 to the bill (H. R. 13856) making appropriations for sundry indepen- dent executive bureaus, boards, commissions, corporations, agencies, and offices, for the fiscal year ending June 30, 1959, and for other purposes, and concur therein; and that the House agrees to the amendment of the Sen- ate No. 8 to the bill, with the following amendments: Strike out "$53,300,000" and insert in lieu thereof "$40,000,000." Strike -out "$8,000,000" and insert in lieu thereof "$6,000,000." Strike out 425,000,000" and insert in lieu thereof "$19,000,000." Strike out "$1,800,000" and insert in lieu thereof "$1,350,000." Strike out "$5,000,000" and insert in lieu thereof "$3,750,000." Strike out "$7,200,000" and insert in lieu lieu thereof "$5,400,000." Mr. MAGNUSON. Mr. PreSident, I move that the Senate concur in the amendments of the House to Senate amendment No. 8. I will state briefly that the House ac- cepted the independent offices appro- priation bill in toto, with the excep- tion of the one item for the Department of Health, Education, and Welfare. The Senate put in an item of $53.3 million, and the House reduced it to $40 million, with appropriate reductions down the line on the grants for science and mathematics and other sections of the bill. That was the only change. Mr. JAVITS. Mr. President, will the Senator yield? Mr. MAGNUSON. I yield. � Mr. JAVITS. Does the item cover an appropriation for the new defense edu- cation setup? Mr. MAGNUSON. Yes. Mr. JAVITS. What does the amend- ment do to the capability for operating under that provision? Mr. MAGNUSON. The Senator from Alabama has informed me that probably this amount will be sufficient for opera- tions until the Congress reconvenes in January. In January or February we will have the program well underway. This should -be a sufficient amount. We would have liked to provide a little more, but I think the House was quite generous. The House had no oppor- tunity to consider this item. The House had to take our word for the matter. Mr. JAVITS. The Senator from Ala- bama feels- we can do the job until the Congress returns? Mr. MAGNUSON. The Senator feels we can live with this amount. Mr. JAVITS. The Senator feels we can live with this amount until Congress reconvenes? Mr. MAGNUSON. Yes. Mr. President, I ask unanimous con- sent to have printed in the RECORD a comparative statement of action taken on H. R. 11574 and H. R. 13856 with appropriations for 1958, and estimates and amounts recommended for 1959. There being no objection, the state- ment was ordered. to be printed in the RECORD, as follows: Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 � 1958 CONGRESSIONAL RECORD SENATE 17995 Comparative statemen.t of action taken on H. R. 11574 and H. R. 13856 with appropriations for 1958, and estimates and amounts recom- mended for 1959 TITLE I Item � . Appropriations, 1958 , Budget esti- mates, 1959 1 ReCommended in H. R. 11574 for 1959 (vetoed) and � finally ap- proved H. R. 13856 - ' Recommended in House and Senate bills for 1959 d'- INDEPENDENT OFFICES CIVIL SERVICE COMMISSION S ' alaries and expenses $18, 300, 000 $18, 420,000 818, 200, 000 $18, 200,000 Investigations of United States citizens for employment by international organizations 491,800 , 383,000 350, 000 --s 350, 000 ?ayment to civil service retirement and disability fund � 589, 000,000 . p thnuities, Panama Canal construction employees and Lighthouse Service widows 2, 39_1, 000 2, 328, 000 2, 300, 000 2, 300. 000 Wministrative expenses, Federal employees life insurance' fund (123, 800) (123, 800) (123, 800) (123, 800) , �� 21, 182, 800 ' 21, 131, 000 609, 850, 000 - 20, 850, 000 Total, Civil Service Commission FEDERAL CIVIL DEFENSE ADMINISTRATION . )perations 17, 000, 000 2 22, 315, 000 18, 500,000 18, 500, 000 L'mergency supplies and equipment 3, 300, 000 l 18,000, 000 18, 000, 000 18, 000,000 lesearch and development 2, 000, 000 4, 400, 000 2, 000, 000 2, 000,000 federal contributions 17, 000,000 Total, Federal Civil Defense Administration 39,300, 000 44, 715, 000 38, 500, 000 38, 100,000 FUNDS APPROPRIATED TO THE PRESIDENT Msaster relief 25,000, 000 FEDERAL COMMUNICATIONS COMMISSION , . Salaries and expenses 8,365, 000 8, 950. 000 8, 900, 000 8,800, 000 FEDERAL POWER COMMISSION Salaries and expenses .-- 3, 666, 000 6,385, 000 6, 385,000 6, 385, 000 FEDERAL TRADE COMMISSION Salaries and expenses 5,950, 000 6, 025, 000 5, 975, 000 �, 5, 975,000 - GENERAL ACCOUNTING OFFICE Salaries and expenses 36,050, 000 38,300, 000 37,000, 000 37, 000, 000 GENERAL SERVICES ADMINISTRATION )perating expenses, Public Buildings Service 132, 689, 000 138, 500, 000 136, 539, 000 136, 539, 000 Impair and improvement, federally owned buildings 65, 000, 000 50, 000,000 75, 000, 000 75, 000, 000 Sites and expenses, public buildings projects 20, 000, 000 20, 000,000 39, 915, 000 39, 915, 000 )(instruction, public buildings projects 2, 125,000 152, 810,000 152, 810,000 'ayments, public buildings purchase contracts 1,331, 100 1, 265, 000 310, 900 310, 900 )onstruction, Federal office building numbered. 6, Washington, D. C 14, 000, 000 ' 14, 000, 000 )(instruction, United States Court of Claims and Federal office building, Washington, D. C 1,200, 000 1, 200, 000 1, 200, 000 :Ionstruction, United States Mission Building, New York, N. Y 3, 975, 000 3,750, 000 3, 750, 000 Tospital facilities in the District of Columbia 2, 000, 000 )perating expenses, Federal Supply Service 3 3,3(30, 000 4 3, 615,000 ( 3, 460, 000 4 3, 460, 000 l:xpenses, supply distribution �Ieneral 17, 765.000 19, 500, 000 18. 765, 00(1 18, 765, 00(1 supply fund 12, 500, 000 15, 000, OW 6, 250, 000 6,950, 000 )perating expenses, National Archives and Records Service 7,293, 000 7, 650, 000 7, 443, 000 7, 443, 000 )perating expenses, Transportation and Public Utilities Service 1, 390, 000 2, 000,000 1, 850.600 � 1, 850, 000 Strategic and critical materials 10, 000, 000 3,000, 000 3, 000,060 Salaries and expenses, Office of Administrator - i 260, 000 200,000 200, 000 300, MO Wininistrative operations fund (limitation) (10, 530, 000) (11, 100,000) (11, 043, 000) (11, 043, 000) Total, General Services Administration 265, 913, 100 332, 905,600 464, 492, 900 464, 592, 900 HOUSING AND HOME FINANCE AGENCY Dffice of the Administrator: Salaries an -d expenses 7, 380, 000 8, 850, 000 8, 000, 000 8, 000, 000 Urban planning grants - � 1, 275, 000 3, 500, 000 3, 250,000 3, 250,000 Farm housing research 75, 000 Reserve of planned public works (payment to revolving fund) 5, 000, 000 8, 500,000 7, 000, 000 7, 000, 000 Capital grants for slum clearance and urban renewal 50,000, 000 10,000, 000 50, 000, 000 Total, Office of the Administrator � 13, 730, 000 70.850, GOO 68, 250,000 68, 2.50, 000 'ublic Housing Administration: Annual contributions p , 98, 900,060 114, 000, 000 107, 500, 000 107, 500,090 Administrative expenses ' 11, 440, 000 12, 200, 000- 11, 860,000 11, 800, 000 Total, Public Housing Administration 110, 340, 000 126, 200, 000 119, 300,600 119, 300, 000 Total, Housing and Home Finance Agency - . 124, 070, 000 197, 050. 000 187, 550, 000 187, 550,000 INTERSTATE COMMERCE COMMISSION Salaries and expenses 16, 750, 000 17, 500,000 17,000, 000 17, 000, 000 NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS Salaries and expenses 74, 720, 000 80, 430, 000 78, 100, 000 78, 100, 000 )(instruction and equipment 41, 200,000 28, 220,000 23,000, 000. 23, 000, 000 Total, National Advisory Committee for Aeronautics 115, 920, 000 106, 700, 000 101, 100, 000 101, 100,000 NATIONAL CAPITAL HOUSING AUTHORITY . )peration and maintenance of properties .> - , , 38,000 45,500 38,000 38. 000 NATIONAL SCIENCE FOUNDATION Salaries and expenses � 49, 750,000 140, 000, 000 130, 000, 000 130, 000, 000 nternational Geophysical Year 2, 000, 000 Total, National Science Foundation 51, 750, 000 ,140, 000, 000 130, 000, 000 130, 000,060 RENEGOTIATION BOARD Salaries and expenses 3, 000, 000 2, 900, 000 2, 850, 000 2, 850, 000 Footnotes at end of table. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 � Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 17996 CONGRESSIONAL RECORD - SENATE August 23 Comparative statement of action taken on H. R. 11574 and H. R. 13856 with appropriations for 1958, and estimates and amounts recom- mended for 1959-Continued TITLE I-Continued - Item - . _ 4 - ' Appropriations, 1958 , Budget esti- mates, 1959 I Recommended in H. R. 11574 for 1959 (vetoed) and finally ap- proved H. R. 13856 Recommended in House and Senate bills for 1959 i SECURITIES AND EXCHANGE COMMISSION Salaries and expenses SELECTIVE SERVICE SYSTEM 3alaries and expe.nses i , VETERANS' ADMINISTRATION 3 eneral operating expenses Medical administration and miscellaneous operating expenses inpatient care, Dutpatient care VI aintenance and operation of supply depots Dompensation and pensions Readjustment benefits ' Veterans insurance and indemnities Orants to the Republic of the Philippines s Construction of hospital and domiciliary facilities Major alterations, improvements, and repair Military and naval insurance National service life insurance Servicemen's indemnities �-.. Service-disabled veterans insurance fund ' / - Total, Veterans' Administration Total, title I � , ,- $6, 700,000 $7, 100,0,00 l $7, 100,000 $7, 100, 000 . 27 000 000 28,000, 000 . 27, 500, 000 27, 500, 000 161, 374, 000 21,765, 400 710, 378, 000 79, 000, 000 1,827, 800 3, 082, 250, 000 814,047, 000 I, 679, 802 42. 500, 000 2.028, WO 4, 275, 000 7, 000,000 32, 127, 500 1, 500,000 � o � a I, 0oEsscsosR 8 8 4-6 0000.6.0 147, 500,000 26,000, 090 715, 465, 000 75, 399,000 2, 055, 000 3, 200, 000,000 700, 000, 000 51,100, 000 1, 250, 000 19,201, 000 . 3, ' 147, 26, 715, 75, 2, 200, 700, 61, 1, 19, 500,000 000,000 465, 000 399, 000 055, 000 000, 000 000,000 100, 000 250, 000 295, 000 � 4, 962. 250, 502 4, 969, 354, 000 4,938, 064,000 4, 938, 064, 000 5, 714, 905, 402 5,927, 060, 500 .. 5v 6582, 304,900 5, 993, 404, 900 I Does not include supplemental amounts considered in the Supplemental Appro- priation Act, 1959. 2 Including $2,915,000 in S. Doc. 89 for consolidation of delegated functions. ���4 2 And $1,600,000 from proceeds of surplus personal property disposal. And $1,865,000 from proceeds of surplus persona property disposal. Includes $3,900,000 pending in Supplemental Appropriation Act, 1959. And in addition $6,656,000 from reimbursements. 1 Including $1,802,000 in S. Doc. 94. TITLE II-CORPORATIONS ADMINISTRATIVE EXPENSES [Limitations on amounts corporate funds to be expended] Corporation or agency e Authoriza- tions, 1958 Budget esti- mates, 1959 Recommended in H. R. 11574 Recommended in bill for 1959 Federal Home Loan Bank Board Federal Savings and Loan Insurance Corporation General Services Administration: . . A baca fiber program Federal Facilities Corporation Reconstruction Finance Corporation Liquidation Fund Housing and Home Finance Agency: College housing loans Piiblic facility loans Revolving fund (liquidating programs) Federal National Mortgage Association Federal Housing Administration. Public Housing Administration Total, administrative expenses , 7 - 2 $1, 250, 000 675,000 47,000 50,000 800,000 1,377,000 400.000 1, 100, 000 4750, MO 7,260,000 000 12, 420, 000 1 $1,300, 000 720,000 47,000 10,000 54, 000 1, 675, 000 I 750, 000 673,000 . 4,750,000 7, 400,000 12, 700,000 $1, 1, 4, 7, 2 12, 600, 000 720,000 47,000 25,000 50, 000 675, 000 400,000 600,000 750,000 300, 000 258,000 2 $1, 1, 4, 7, 12, 600,000 720,000 47, 000 21,000 50,000 675, 000 400,000 600,000 750,000 300, 000 258,000 17, 709, 000 17, 719, 000 17, 167,000 17, 167,000 Includes 8200,000 in S. Doe. 94. s I Includes funds available by appropriation in title I and by tyansfer from the revolving fund (liquidating programs), and is not included in totals to avoid duplica- tion. TITLE IV-ADDITIONAL SUPPLEMENTAL APPROPRIATIONS 3. Doc. No.. . . ., .../ Department or activity - ) Budget estimates Recommended in House bill Amount recom- mended by Senate Amounts ap- proved by House and agreed to by Senate S. 64 S. 117 S. 117 S. 117 INDEPENDENT OFFICES SOUTH CAROLINA-GEORGIA-ALARA:VA-FLORIDA AND TEXAS Water Study Commissions . VETERANS' ADMINISTRATION Inpatient care ' ' Total, Independent Offices . "'- DEPARTMENT OF LABOR BUREAU OF LABOR STANDARDS Salaries and expenses , BUREAU OF EMPLOYMENT SECURITY Salaries and expenses ' Grants to States for unemployment compensation and employment service administrative Unemployment compensation for veterans and Federal employees Total, Department of Labor l' $100, 000 1802, 000 I $100, 000 I, 802000 1, 902, 000 1, 902, 000 � $500, 000 110,000 4, 300, 000 I 66,000, 000 � _.... Language Language 70, 910, 000 Footnotes at end of table. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD - SENATE 47997 Comparative statement of action taken on I?. 11574 and H. R. 18856 with appropriations for 1958, and estimates and amounts recom- mended for 1959-Continued 'TITLE IV-ADDITIONAL SUPPLEMENTAL APPROPRIATIONS-Continued L Doc. No. Department or activity Budget estimates Recommended in House bill Amount recom- mended by Senate Amounts ap- proved by Douse and agreed to by Senate DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE � 1. 117 OFFICE OF EDUCATION ' - Defense educational activities - $117, 200, 000 .. $53, 300,000 $40, 000. 000 , 117 , Salaries and expenses 2,100,000- 750,000 750,000 OFFICE OF TIIE SECRETARY - White House Conference on Aging 100,000 100, 000 Total, Department of Health, Education, and Welfare 110, 300, MO 54, 150, 000 . 40, 350, 000 TREASURY DEPARTMENT - BUREAU OF THE MINT � Salaries and expenses (I) (1) (2) POST OFFICE DEPARTMENT . (OUT of postal funds) ;. 117 Transportation (1957 and 1958) 54, 000, 000 - 54, 000, 000 54, 000, 000 Total, title IV _ 244, 210, 000 .110, 052, 000 96, 752, 000 RECAPITULATION Citle I $5, 927, odo. 500 $5, 993, 404,000 $5, 993, 404, 900 $5, 993, 404,000 Citle IV , Total, all titles 244, 210, 000 110, 052, 000 96, 752, 000 6, 171, 270, 500 5, 993, 404, 900 6,103, 456, 900 6, 090, 156, 900 I And $10,700,000 to be derived by transfer. The PRESIDING OFFICER. The question is on agreeing to the motion of the Senator from Washington. The motion was agreed to. � INCREASE IN DIVERSION OF WATER FROM LAKE MICHIGAN INTO THE ILLINOIS WATERWAY The Senate resumed the consideration of the bill (H. R. 2) to authorize the State of Illinois and the Metropolitan Sanitary District of Greater Chicago, under the direction of the Secretary of the Army, to test on a 3-year basis the effect of increasing the diversion of water from Lake Michigan into the Illinois Waterway, and for other purposes. �� Mr. pROXMIRE. Mr. President, what is the purpose of the bill? I shall read a very brief part of the bill, which I think will establish the stated purpose of the bill. The bill states:� � To authorize the State of Illinois and the Metropolitan Sanitary District of Greater Chicago, under- the direction of the Seciikary of the Army to test, on a 3-year basis, the effect of increasing the diversion of water from Lake Michigan into the Illinois Water- way, and for other purposes. It is said a study is to be made. Let me read what the study is supposed to provide: The effect of increased diversion of water from Lake Michigan upon the Illinois Waterway and_the degree of improvement in such waterway caused thereby, the effect of such increased diversion upon commerce among the several States and navigation on the Great Lakes and the Illinois Waterway, and the extent to which such increased di- version may affect the level of Lake. Michigan. Mr. President, that latter phrase is simply Window dressing. All anyone No. 148-31 2 Language authorizing use of $2,500 foi medal for Rear Admiral Riekover. has to do to establish that fact is to examine the hearings. The fact is that there is no intention whatsoever to study the effect of this diversion upon commerce among the several States and navigation on the Great Lakes. The only purpose is to study the effect of this 'diversion on sanitation, for the city of Chicago and the Metropolitan Sani- tary District of Greater Chicago. Mr. President, I can establish that fact by reading from the hearings, on page 100 of the transcribed hearings, the statement prepared by the Depart- ment of Health, Education, and Wel- fare, which was put into the RECORD by the Honorable THOMAS J. O'BRIEN, House of Representatives, as follows: This investigation would accurately meas- ure changes in sanitary water quality that would result from experimental increased diversion from Lake Michigan to the Illinois Waterway authorized in H. R. 2 and would Indicate how these changes might affect uses of the waterway. Using such indexes as dissolved oxygen, in- testinal bacteria, fertilizing and other chemical values, and several forms of aqua- tic life, calculations maybe made concerning the pollution assimilation capacities of criti- cal reaches of the waterway. Various com- binations of climatic conditions, pollution loads, and flow regimes will be used. The data obtained will be valuable in efficiently adjusting diversion flows to sanitary re- quirements. This is the procedure: In order to evaluate changes induced by increased diversion, it is necessary to have reliable information on water quality under past and current ,waterway operating con- ditions. Much valuable data are now avail- able in the files of the Metropolitan Sanitary District of Greater Chicago and have been reviewed by the Public Health Service. While these data are quite comprehensive in- sofar as showing certain chemical character- istics of the water, they do not sufficiently portray important biological conditions of the stream and their effects upon necessary water uses. Such information, together with additional chemical and physical determina- tions, will have to be obtained by routine monitoring and special field studies to pro- vide a thorough evaluation of water quality. The study goes on to point ,out that samples will be taken for a distance of 169 miles in the Illinois Waterway be- tween Peoria and Lake Michigan. There is no reference to a study of the effect of the diversion on commerce on the Great Lakes. That section of the bill is simply ignored in the study that will take place under the bill. I believe that is impor- tant, because the distinguished junior Senator from Illinois [Mk. DIRKSEN] made the point earlier tonight that health was the real justification for the bill, the health of the people of Chicago, and I believe that a reading of the study would indicate that indeed health is the only justification for that kind of study. Obviously by studying the chemical content of the water one can tell very little, probably nothing, about the navi- gation even in the Illinois Waterway, and I believe I can establish to the satisfac- tion of the Senate a little later that the diversion will in no way improve the nav- igational aspects of the Illinois Water- way. Health is the only possible justification for the study. I believe I can establish that this study cannot be justified on the basis of improving or assisting the health of the people of Chicago. Last night I engaged in a colloquy with my highly respected friend from Illinois, the senior Senator from Illinois '[Mr. DOUGLAS], and in the course of that col- loquy I asked the distinguished Senator from Illinois whether there was any � Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 17998. CONGRESSIONAL RECORD � SENATE study by the Chicago Board of Health, the Illinois Board of Health, the Public Health Service, or by any health agency or group of physicians of this problem, or whether the problem had even been es- tablished on the basis of any kind of health study, and the answers of the dis- tinguished Senator from Illinois are in the CONGRESSIONAL RECORD. I invite the attention of Senators to the answers. The . answers were in the negative in every single ease. Mr. DOUGLAS. Mr. President, will the Senator yield? Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield to the distinguished senior Senator from Illinois [Mr. DOUGLAS] for a question without losing my right to the floor. Mr. DOUGLAS. Is it not correct that the RECORD shows that the reply of the senior Senator from Illinois was that by the terms of the proposed legislation the Illinois Sanitary Water Control Board would have no authority whatso- ever over the Metropolitan Sanitary Dis- trict of 'Chicago, and therefore it could not make such a study? Secondly, the city of Chicago is only one of the governmental bodies included in the Metropolitan Sanitary District, and therefore could not make such a study. The only body that could make such a study was the Metropolitan San- itary District itself, and it is that body which is here asking for relief for the- people and the industries of the Metro- politan District of Chicago. . Mr. PitOXMIRE. The distinguished Senator from Illinois, as usual, makes the best possible situation out of a most unfortunate case. I have in my hand a volume of some 1,200 pages entitled "The Chicago, Cook County, Health Survey." This study was made by a group of emi- nent medical doctors, eminent health autriorities. Let me read some of the names: K. E. Miller, M. D., Medical Di- rector, United States Public Health Serv- ice; Robert H. Flinn, M. D., senior sur- geon, United States Public Health Serv- ice, Acting Director of Survey; William F. Petersen,- M. D., Chicago Medical So- ciety, and a long list of prominent out- standing health authorities, including the nationally known Dr. Herman Bun- desen, who has been a leader in the Chi- cago Board of Health for many years. The revelations in this study with re- spect to the health aspects of, Chicago's water supply, as far as the sanitation district is concerned, indicate that there is a great deal of work which the sani- tation district should do before it comes to the Congress of the United States and asks for more diversion from Lake Mich- igan. Later tonight�I hope I shall have time tonight�I will call to the attention of the Senate the recommendations which have been made with regard to the action that the sanitary district shouldLtake before asking for additional diversion from Lake Michigan. I shall be delighted to give those recommenda- tions to the distinguished Senator from Illinois [Mr. DOUGLAS]. � Mr. President, the distinguished Sen- ator from Illinois was unable to give me� Mr. DOUGLAS. � Will the Senator yield for a question? Mr. PROXMIRE. Mr. President, ask unanimous consent that I may yield to the distinguished Senator from Illi- nois for a question without losing my right to the floor. The PRESIDING OFFICER. With- out objection, it is so ordered. Mr. DOUGLAS. Is it not correct that the report to which the Senator refers was made in 1947? Mr. PROXMIRE. The report was made in 1947. It was published in 1949. Since that time there have been some changes. However, since that, time the efficiency of the metropolitan sanitary district first improved rather greatly, and then the- efficiency deteriorated consid- erably. A number of the recommenda- tions made by the eminent physicians who engaged in that study have not been carried out. They should be carried out before the Congress gives Chicago or the representatives of Chicago what they are asking for. I do not state that as my opinion as a Senator representing Wis- consin; I say that is the recommendation of the outstanding health authorities in Chicago itself. Mr. DOUGLAS. Mr. President, will the Senator yield? Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield to the Senator from Illinois for a question without losing my right to the floor. The PRESIDING OFFICER. The Senator does not require unanimous con- sent to yield for a question. Mr. PROXMIRE. Mr. President, I wish to protect my right to the floor when I yield for a question. The PRESIDING OFFICER. The Senator needs unanimous consent only when he yields for some other purpose. Mr. PROXMIRE. I understand it is my responsibility to protect my rights. If no question is asked, it is my respon- sibility to protect my right to the floor. Mr. DOUGLAS.-- Does the Senator yield for a question? Mr. PROXMIRE. I yield to the Sen- ator from Illinois for a question. Mr. DOUGLAS. Is it not true that in the 11 years which have passed since this report was made the metropolitan district of Chicago has grown greatly in population and in industry, and that the problems today are more difficult than the problems which we had to face then? - Mr. PROXMIRE. The answer is that since the report was .made the health situation has improved greatly in Chi- cago. The health problem is not now as serious as it was. is true that 'the population has increased. It is true that industry has increased. However, the fact is the sanitation district has helped to solve that problem, and while no health problem existed to an extent that would warrant Chicago in coming to the Congress of the United States and ask- ing for assistance at that time, the situa- tion is even less persuasive now. I would like to point out that there are no -figures available in the 768 pages of the hearings in 3 years of trying to secure' passage of this bill from anyone, quali- fied or unqualified, to show that a single August 23 death or even a single illness during the past 20 years was the result of inade- quate diversion. There is no attempt to prove that. I hold in my hand the report which I received today from the Public Health Service. This report shows illnesses from typhoid and amoebic dysentery in 1956 and 1957 in the 4 or 5 great cities of this country. I refer to the cities of New York, Chicago, Los Angeles, Phila- delphia and Detroit. On a per capita basis, the situation is better in Chicago � than in any of the other four cities. ' The situation is also established by the Metropolitan Sanitary District itself in a publication which has come 'out within the past several months, I believe, in which they say on page 7 of their publi- cation: The Metropolitan Sanitary District of Greater Chicago was destined to make the pity one of the healthiest metropolises in the world. Then they go on, at page 38 of the study to say: Their work in the past has helped make this one of the healthiest major population centers in the world; their work in the future could help make this the largest, wealthiest and most productive community on earth. I shall establish, furthermore, that there are reasons�good, solid, sensible, economic reasons�why Chicago wants this diversion. They have nothing to do . with health. They relate to water power, rather than health considerations. It has everything to do with the fact that they can handle the _sanitation problem more economically under the proposal before us, from their standpoint, al- though from the standpoint of the Na- tion, it would be far more expensive. That is a serious charge, and I shall establish it- to the satisfaction of any prudent -and objective person. Last night we established the fact that the sanitation facilities 20 years ago, 15 years ago, and 10, years ago discharged a far greater absolute amount of oxygen- deficient effluent, as well as 4 times the proportion of BOD without any estab- lished health menace. Since that time there has been a considerable improve- ment in the quality 'of the effluent which goes into the Illinois waterway. There has been an improveMent to the point where the situation now is far better than it was 20 or 15 or 10 years ago. At that time there was no serious health problem in Chicago. In 1941, when the BOD measure of pollution was more than four times greater than it is at the present time, the special master appointed by the Su- preme Court found that there was no serious health problem. That is a mat- ter which has been established and which has not been challenged in the hearings. Certainly, anyone has had ample opportunity to do so over the past 3 years. I should like to come now to some- thing which is even more serious.. The fact is that equivalent purification� that is what Chicago and its representa- tives are seeking to secure�Can be pro- -vided, according to the Public Health Service, in a memorandum dated April Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD SENATE 8, 1957, by any 1 of 4 processes which would give similar water quality with respect to absorbed oxygen. The Public Health Service -Says that water charac- teristics other than low absorbed oxygen have not been a significant pollution problem in the Illinois Waterway. These are the four choices which the Public Health Service has said Chicago has available to it, if it decides to use any of these measures, which would make diversion of Lake Michigan water unnecessary, and which would solve the sanitation problem which the city has confronting it. The first is: 1. Measures to keep to an absolute mini- mum the amount of untreated sewage dis- charged to streams or into sewers during storms. I have been talking with authorities in the Public Health Service, and they tell me that there is no question that this method would help immensely to reduce the pollution problem in Chicago. It is a matter of dollars and cents. Every community, and certainly every indus- trial city in America, has the problem of handling its sewage. It is a matter of doing the job and spending money to provide the facilities. It is a matter of dollars and cents. It is a matter of taxes. I shall show in a moment that the city of Chicago is well able to pay these taxes, in fact far better than other cities, including the city I am proud to repre- sent. That is one choice. The second choice, according to the Public Health Service is this: 2. Significant reduction of hydraulic and organic wasteload placed upon the treat- ment facilities by a program of industrial waste control at the sou'rce. The State of Wisconsin has gone to a great deal of trouble to establish by stat- ute the requirement that our industries treat their waste before it pollutes the streams of the State. That is something we have done at great risk, because it has discouraged industry from moving into Wisconsin. As a member of the State legislature I well recall the battle we had to keep the streams free of pollution and the battle we had when industries threatened to leave the State. I would not be surprised if some of the indus- tries have located in other places than Wisconsin because of our determination to keep the streams free of pollution and to force industries to treat their waste before expelling it into the streams. I have a detailed study of the job that has been done by Wisconsin. I am very proud of it. It is one of the best jobs that has been done in the country. We are not the only State that has done it. It has been done elsewhere, and it could be done in Chicago. I should like to read from a profes- sional opinion on industrial waste treat- ment by Kenneth S. Watson, executive secretary-engineer of the West 'Orginia Water Commission, at the Fourth In- dustrial Waste Conference, at Purdue University in 1948. Mr. Watson had this to say: The water commission feels that the solu- tion of industrial waste problems is the di- rect responsibility of each plant. This philosophy-has been been adopted because the technical men in the industries and the available consultants are completely familiat with plant processes and wastes and are better qualified to devise recovery and treat- ment methods than anyone else. The staff of the commission is available, however, to supply every aid possible in the form of effluent and stream specifications, orienta- tion in the technique of. sanitary-chemical analyses, counsel with reference to the gen- eral principles- of treatment, and coordina- tion of the statewide pollution control pro- gram to insure just interpretation of effluent requirements to all industries. At this time, I do not wish to say more, because I believe I have established the point. At a later time, if it is 'desired, shall establish it more clearly. Chicago, itself, could solve this prob- lem very easily and simply by adopting a city ordinance which would require in- dustrial plants to do what industrial plants must do in Wisconsin and else- where, namely, treat their effluent before it is expelled, in a way which will give it enough oxygen so that it does not ex- haust the regular amount of oxygen. That was the second proposal that was made by the Public Health Service. It is a matter of dollars and cents. It can be done easily by the city Of Chicago, just as it has been done by the people of Wisconsin and the people of other States. The third choice is�and I know this is likely to be controversial, and I would expect an argument on it- 3. Use, of chemicals, such as chlorine, to reduce the decomposable dissolved and sus- pended solids that 'remain even in well- treated effluents. This is something that can be ac- complished. Again it is a matter of cost. According to the cost estimates of the Public Health Service, it would cost in the neighborhood of a million and a half dollars, or less. With a budget of something like $20 or $22 million a year, it is obvious that this is not a large increase in the burden on the Metropoli- tan Sanitation District of Chicago. To nail this down, I should like to call at- tention to the fact that the people of Chicago must pay -30 cents a hundred in their taxes for sanitation. The pro- posal of the Public Health Service would increase this amount by a penny or two per hundred of valuation. It would be a modest increase, one that they could aff ord. The most practical and most useful of all methods is the fourth method: 4. Treatment by aeration or other means of the sewage water in the waterway below the point of sewage discharge. � This method of aeration is one which is extremely promising because its process is so scientific, and, as I said before, it has been established by the Public Health Service that the real problem in the Illinois waterway is water-quality characteristics other than low absorbed oxygen. This is a method of putting oxygen into the water precisely where it is 17999 needed, by blowing it or diffusing it in. Engineers assure me that this can be done. They assure me that it can be done very economically. They can do it, as I understand, on the basis of about $1,500,000 to $2 million to begin with, and then at a cost of $250,000 a year. The city of� Chicago itself could solve this problem. This fact is established in a memorandum issued by the Depart- ment of Health, Education, and Welfare, dated July 12, 1957, in which the De- partment discussed these alternatives very thoroughly. They point out the cost and emphasize that the first cost of the aeration would be $2 million, and the annual cost $250,000. It can be done by a very interesting method. What happens is that after the efflu- ent is put into the waterway, it begins to decompose and exhausts the oxygen of the waterway. When it reaches a point about a mile or 2 miles or 3 miles from where it goes in, the oxygen deficiency is at its greatest. Conse- quently, at this point oxygen can be mit into the waterway, and the water cleansed. As has been established be- fore, and as I have read several times', the primary problem of the Illinois waterway is low oxygen content. In that connection, I shall make an- other spectacular point in just a minute. But before I make that point I should like to say that when a city asks to di- vert water, it seems to me that one of the questions which might be asked is whether that city is a provident user of water; to begin with. I ask any Senator to mention any city in the country which uses as much water per person for domestic purposes as Chicago uses. Chicago uses far more water per per- son than does Philadelphia, Cleveland, or New York; 30 percent more than Los Angeles and Milwaukee; 100 percent more than San Francisco or Baltimore. Mr. DOUGLAS. Mr. President, will the Senator yield? Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield to the Senator from Illinois for a ques- tion. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. DOUGLAS. Is not that true be- cause the city of Chicago has higher standards of cleanliness than do the in- habitants of other cities? Mr. PROXMIRE. I say to my good friend from Illinois that the city of Chi-. cago certainly has high standards of cleanliness. rtake my hat off to them. They have a clean-minded senior Sen- ator and a clean-minded junior Senator. However, the people of Milwaukee and the people of New York are able to keep just as clean, and we have just as clean people, as the Senator knows, with the use of far less water. I call the attention of my good friend from Illinois to .a statement which has been prepared by his distinguished com- patriots in Chicago, outstanding doctors and health authorities whom I men- tioned earlier. I quote what they say: Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18000 CONGRESSIONAL RECORD � SENATE The average daily per capita consumption of water in Chicago in 1945 was 262.8 gallons. The 1930 average daily per capita consump- tion of 301.9 gallons was the highest value recorded in any year by the city of Chicago. Comparing the standing of Chicago with other large cities in. the United States, it is seen that the daily per capita consump- tion is nearly twice that in the,r6ther cities. The average daily per capita consumption in communities outside of Chicago supplied by the Chicago Waterworks in 1945 was 151.3 gallons. The water users in these communi- ties are 100 percent metered. Such differ- ences are excessive and warrant careful en- gineering study. In other words, if meters are installed in the stores and flats, the Use of water is reduced. Without meters, the use of water is increased sixfold. I call the attention of the Senate to the fact that Chicago has less metering than any other comparable city. I have the percentage of Metering in other out- standing cities in the country. Hackensack, N. J., with a population of about 39,000, has 100 percent metering. San Diego, Calif., has 100 percent meter- ing. Miami, Fla., has 100 percent meter- ing. Atlanta, Ga., has 100 percent metering. Indianapolis, Ind., has 100 percent metering. Minneapolis, Minn., has 100 percent metering. Cincinnati, Ohio, has 100 percent metering. Colum- bus, Ohio, has 100 percent metering. How can Senators who represent States in which those cities are located vote for a diversion of water to Chicago, which does damage to other States, when their States have metering; which re- sults in no inconvenience and a reduc- tion in expense to their citizens; which results in a conservation of water; while Chicago is so extravagant that its people use twice as much water as other cities, and only 28.7 percent of its water users are metered? Mr. CLARK. Mr. President, will the Senator from Wisconsin yield to me, with the understanding that he will not thereby lose his right to the floor? Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield to the Senator from Pennsylvania for� Mr. CLARK. For 3 minutes? Mr. PROXMIRE. I ask unanimous consent that I may yield for 3 minutes to the distinguished junior Senator from Pennsylvania [Mr. CLARK], without losing my right to the floor. The PRESIDING OFFICER (Mr. SMAHERS in the chair) . Is there ob- jection? Without objection, it is so or- dered; and the Senator from Pennsyl- vania is recognized for 3 minutes. Mr. CLARK. Mr. President, I should like to state briefly my reasons for -op- posing the pending bill. First, the increased diversion will in- evitably lower the level of all of the Great Lakes except Lake Superior; and even though this decrease would measure less than' an inch on Pennsylvania's shore on Lake Erie, there would be measurable damage to the shipping interests of the Commonwealth which gage ship-bottom clearance at the Great Lakes locks and sills in fractions of inches. Second, there is no sound reason why the Congress of the United States should permit 1 State to take advantage of its unique natural position on the edge of 2 great watersheds, to process municipal sewage more cheaply by diverting waters of 1 watershed from their natural course and into the other, at the expense of the navigation and power interests in all other States on the same and all lower levels on the Great Lakes and in our great and friendly neighbor to the north, Canada. In this connection, I submit that it is idle to attempt to justify this bill in terms of, the need for further studies of the effects of the increased di- version, as set fortli in section 2 of the bill. In the 58 years in which this di- version has been flowing continuously, but at different rates of flow, its effects have been studied exhaustively, in all conceivable aspects; and no convincing proof has been submitted to indicate that further studies are needed. Third, the sanctioning of this increased diversion without full Canadian approval would set an extremely bad precedent in international law, which would unques- tionably be used against us in the sensi- tive and vital negotiations which our Government is engaged in with Canada concerning the development of the Co- lumbia River Basin in our own North- west. Mr. President, I know that Canada has� stated that she is not actively and for- mally objecting to the proposed diver- sion. However, it is my view�although I may be in error�that this is because, a little later, Canada hopes to be, able to control the headwaters of rivers which� flow from Canada into our Northwest, and to be able to control them in-a, way which, in my judgment, would be of con- siderable detriment to United States citi- zens on the United States side of the border. Mr. President, the Governor of Penn- sylvania, the Honorable George Leader, has written to me a letter in which he requests me to call these matters to the attention of my colleagues. I ask unan- imous consent that the letter from Gov- ernor Leader to me be printed at this point in the RECORD, in connection with my remarks. The PRESIDING OFFICER. Without obj ection, Mr. LAUSCHE. Mr. President, will the Senator from Pennsylvania be so kind as to read the letter into the RECORD? Mr..CLARK. Mr. President, my friend, the distinguished junior Senator from Ohio, has requested that I read the letter to the Senate. Mr. PROXMIRE. Mr. President, I ask unanimous consent that the distin- guished junior Senator from Pennsyl- vania may read the letter to the Senate, without my losing my right to the floor, The PRESIDING OFFICER. Is there objection? Hearing none, it is so or- dered; and the Senator from Pennsyl- vania may proceed. Mr. CLARK. Mr. President, let me say, parenthetically, to my good friend, the Senator from Ohio [Mr. LAUSCHEL that we in Pennsylvania do not object to a little informality in letters; and thus it is that the letter which I am about to August 23 read is addressed "Dear JOE." [Laugh- ter.] The letter is dated June 6, 1958; and the text reads as follows: I wish to call to your attention the very serious adverse effects upon Pennsylvania of Senate bill 1123. That bill is practically identical with the bill now under consideration by this body. I read further from the letter: This bill would permit the Metropolitan Sanitary District of Chicago, Ill., to divert out of the Great Lakes 2,500 cubic feet per second of water for a period of 3 years. At the present time, the metropolitan sanitary district diverts 3,500 cubic feet per, second from the Great Lakes Basin pursuant to a decree of the United States Supreme Court. The additional diversion which would be authorized by this bill would lower the level of Lake Erie 11/2 to 2 inches. While this may appear to be but a slight matter, it would affect adversely all riparian landowners and seriously interfere with the operations of the port of Erie: Much effort and funds have been expended to maintain a deep channel at this port. The lowering of the lake level vitiates this work. Moreover, the lowering of the lake level would result in a loss of 1 to 11/2 million tons of shipping each year for each inch by which the lake level is lowered. The Great Lakes barges, which carry 'so much of the commerce of this region, are loaded to the nearest inch. Consequently, the mainte- nance Of lake levels is of utmost importance to the shipping industry and the commerce of the Great Lakes area. The lowering of the lake level also affects the power potential at Niagara. Since a large section of Pennsylvania' will be among the preferred users when the hydroelectric power is developed, this potential loss of cheap power also affects_ Pennsylvania ad- versly. The diversion of water, one of our most precious natural resources, out of its water- shed area in order to benefit some other area constitutes a new and dangerous prin- ciple of law. The companion bill to Senate bill 1123 has already passed the House. That is the bill the Senate is con- sidering at this time: The PRESIDING OFFICER. The 3 minute- yielded to the Senator from Pennsylvania have expired. , Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield 1 additional minute to the Senator from Pennsylvania without losing my right to the floor. The PRESIDING OFFICER. Is there objection? Without objection, it is- so ordered, and the Senator from Pennsyl- vania is recognized for 1 additional minute. Mr. CLARK. Mr. President, the re- mainder of the letter addressed to me by the Governor of Pennsylvania reads as follows: No Representative from Pennsylvania ap- peared to protest the bill. I -urge that you vote againAt this measure and protest its passage. With kindest personal regards, I am, Sincerely yours, Mr. President, a- parliamentary in- quiry. � The PRESIDING- / OFFICER. The Senator from Pennsylvania will state it. Mr. CLARK. Is the Senate operating under a unanimous-consent agreement? Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 s CONGRESSIONAL RECORD � SENATE The PRESIDING OFFICER. - No. Mr. CLARK. Mr. President, I ask unanimous consent that the entire let- ter be printed at this point in the RECORD. There being no objection, the letter was ordered to be printed in the RECORD, as follows: JUNE 6, 1958. Hon. JOSEPH S. CLARK, Senate Office Building, Washington, D. C. DEAR JOE: I wish to call to your attention the very serious adverse effects upon Penn- sylvania of Senate bill 1123. This bill would permit the Metropolitan Sanitary District of Chicago, Ill., to divert out of the Great Lakes, 2,500 cubic feet per second of water for a period of 3 years. At the present time, the Metropolitan Sanitary District diverts 3,500 cubic feet per second from the Great Lakes Basin pursuant to a decree of the United States Supreme Court. The additional diversion which would be authorized by this bill would lower the level of Lake Erie 1% to 2 inches. While this may appear to be but a slight mat- ter, it would affect adversely all riparian landowners and seriously interfere with the operations of the Port of Erie. Much effort and funds have been expended to maintain a deep channel at this port. The-lowering of the lake level vitiates this work. Moreover, the lowering of the lake level would result in a loss of one to one and one- half million tons of shipping each year for each inch by which the lake level is lowered. The Great Lakes barges, which carry so much of the commerce of this region, are loaded to the nearest inch. Consequently, the mainte- nance of lake levels is of utmost importance to the shipping industry and the commerce of the Great Lakes area. The lowering of the lake level also affects the power potential at Niagara. Since a large section of Pennsylvania will be among the preferred users when the hydroelectric power is developed, this potential loss of cheap power also affects Pennsylvania adversely. �, The diversion of water, one of our most precious natural resources, out of its water- shed area in order to benefit some other area constitutes a new and dangerous principle of law. The companion bill to Senate bill 1123 has already passed the House. No rep- resentative from Pennsylvania appeared to protest the bill. I urge that you vote against this measure and protest its passage. With kindest personal regards, I am, Sincerely_yours, Mr. CLARK. Mr. President, I should like tr say that we in Pennsylvania have had a rather unhappy experience with the diversion of our natural water rights. In Pennsylvania, we have the Delaware River. New York, with the � approval of the Supreme Court, has taken an enormous gallonage out of the Delaware River, to provide water for the city of New York. I see on the floor at this time my distinguished friend, the Senator from Oklahoma. Last year, he and I and our friend, the Senator from Ohio, had a rather spirited argument about how much of the power from the Niagara project should go to the electric coop- eratives in New York, Ohio, and Penn- sylvania. I hope that, as a result, there will not follow�as -seemed to me then to be likely; and, in all good humor, I say that it seems now to be likely�an un- fortunate precedent in respect to pre- venting water from flowing where it wants to flow, to the detriment of the owners of the riparian rights. For that reason, I support my friend, the Senator from Wisconsin [Mr. PROR- MIRE] in his opposition to the pending bill. Mr. PROXMLRE. I thank the dis- tinguished Senator from Pennsylvania for his excellent statement. MESSAGE FROM THE HOUSE A message from the House- of Repre- sentatives, by Mr. Maurer, one of its reading clerks, 4announced that the House had passed, without amendment, the bill (S. 3728) to incorporate the Big Brothers of America. The message also announced that the House agreed to the amendments of the Senate numbered 1, 2, 3, 4, 5, 6, '1, 9, 10, 11, and 12 to the bill (H. R. 13856) , mak- ing appropriations for sundry independ- ent executive bureaus, boards, commis- sions, corporations, agencies, and offices, for the fiscal year ending June 30, 1959, and for other purposes, and concur there- in; and that the House agreed to the amendment of the Senate numbered 8 to the bill, with the following amend- ments: Strike out "$53,300,000" and insert in lied thereof "$40,000,000." Strike out "$8,000,000" lieu thereof "$6,000,000." Strike out "$25,000,000" lieu thereof "$19,000,000." Strike out "$1,800,000" lieu thereof "$1,350,000." Strike out "$5,000,000" lieu thereof "$3,750,000." And strike out "$7,200,000" and insert �in lieu thereof "$5,400,000." The message further announced that the House had agreed to the report of the committee of conference on the dis- agreeing votes of the two Houses on the amendment of the Senate to the bill (H. R. 4059) for the relief of Mr. and Mrs. Carmen Scoppettuolo. The message also announced that the House had passed a joint resolution (H. J. Res. 546) designating the week of No- vember 21-27, 1958, as National Farm- City Week, in which it requested the concurrence of the Senate. and insert in and insert in and insert in and insert in ENROLLED BILLS SIGNED The message further announced that the Speaker had affixed his signature to the following enrolled bills, and they were signed by the Vice President: H. R. 469. An act to protect producers and consumers against misbranding and false advertising of the fiber content of textile fiber products, and for other purposes; H. R. 1684. An act for the relief of Wil- liam Franklin Rollins; H. R. 3571. An act for the relief of Boris F. Navratil; H. R. 4073. An act for the relief of Peter James O'Brien; H. R. 8943. An act to amend titles 10, 14, and 32, United States Code, to codify recent military law, and" to improve the code* H. R. 9258. An act for the relief of Mrs. Minnie Perreira; H. R. 10495. An act to amend that part of the act of June 9, 1896 (29 Stat. 313) , re- lating to the establishment of postal sta- 18'001 tions and branch post offices, so as to- per- mit them- to be established within 10 miles of the boundary of the adjoining city; and H. R. 13861. An act to repeal certain pro- visions of law relating to messengers for the Committee on Ways and Means of the House of Representatives. CONVENING OF THE 1ST SESSION OF THE 86TH CONGRESS Mr. JOHNSON of Texas. Mr. Pres- ident�. Mr. PROXMIRE. Mr. President,--I ask unanimous consent that I my yield to the distinguished majority leader, without losing my right to the floor. The PRESIDING iaterICER. Is there objection? Without objection, it is so ordered. Mr. JOHNSON of Texas. Mr. Presi- dent, I send to the desk a joint resolu- tion, for which I request immediate con- sideration. The PRESIDING OFFICER. The joint resolution will be read by title, for the information of the Senate. The LEGISLATIVE CLERK. A joint reso- lution (H. J. Res. 704) establishing that the 1st session of the 86th Congress con- vene at noon on Wednesday, January 7, 195g. The PRESIDING satoriCER. Is there objection to the request for the present consideration of the joint resolution? Mr. DOUGLAS. Mr. President, re- serving the right to object, let me - ask whether this constitutes a motion for the adjournment of this session of Congress. Mr. JOHNSON of Texas. No; the joint resolution provides only the con- vening date for the 1st session of the. 86th Congress, next January. Mr. DOUGLAS. Is this an indication of how coming events cast their shadows before? Mr. JOHNSON of Texas. That is cor- rect. The PRESIDING OFFICER. Is there objection to the request for the present consideration of the joint resolution? There being no objection, the joint resolution (H. J. Res. 704) was consid- ered, ordered to a third reading, read the third time, and passed. DESIGNATION OF THE WEEK OF NOVEMBER .21-27, 1958, AS NA- TIONAL FARM-CITY WEEK Mr. ELLENDER. Mr. President, will the Senator from Wisconsin yield 2 min- utes to me? , Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield 2 minutes to the Senator from Louisiana, without losing my right to the floor. The PRESIDING OFFICER. Is there objection? Without objection; it is so ordered. Mr/ELLENDER. Mr. President, I ask that the Chair lay before the Senate House Joint Resolution 546. The PRESIDING OFFICER laid be- fore the Senate the joint resolution (H. J. Res. 546) designating the week of No- vember 21-27, 1958, as National Farm- City Week, which was read twice by its title. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18002 CONGRESSIONAL RECORD � SENATE ' The PRESIDING OFFICER. Is there objection to the present consideration of the joint resolution? There being no objection, the Senate proceeded to consider the joint resolu- tion. � Mr. ELLENDER. Mr. President, , I have consulted the majority leader and the minority leader about taking up the resolution. A similar resolution has been adopted each year for the past 2 years. I move its adoption. The PRESIDING OFFICER. The joint resolution is open to amendment. If there be no amendment, to be pro- posed, the question is on the third read- ing and passage of the joint resolution. The joint resolution (H. J. Res. 546) was ordered to a third reading,-read the third time, and passed. SUMMARY OF WORK OF SENATE COMMITTEE ON LABOR AND PUB- LIC WELFARE Mr. HILL. Mr. President, will the Senator from Wisconsin yield to me, with the understanding that he does not lose the floor? Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may yield to the Senator from Alabama with the understanding that I do not lose the floor. The PRESIDING OFFICER,. Without objection, it is so ordered. Mr. HILL. ML President, I ask unan- imous consent to have printed in the RECORD a summary of the work of the Senate Committee on Labor and Public Welfare during this session of Congress. There being no objection, the summary was ordered to be printed in the RECORD. [The matter referred to will appear hereafter in the Appendix.] INCREASE IN DIVERSION OF WATER' FROM LAKE MICHIGAN INTO THE ILLINOIS WATERWAY The Senate resumed the cbnsidera- ton of the bill (H. R.. 2) to authorize the State of Illinois and the Metropolitan Sanitary District of Greater Chicago, under the direction of _the Secretary of the Army, to test on a 3-year basis the effect of increasing the diversion of water -from Lake Michigan into the Illi- nois Waterway, and for other purposes. The PRESIDING OFFICER. The Senator from Wisconsin is recognized. Mr. PROXMIRE.. Mr. President, the distinguished senior, from Wisconsin [Mr. WILEY] my colleague, has been doing a wonderful job. He has procured from the Sanitary District of Greater Chicago a report that gives an answer to how Chicago can solve its problem with- out diversion. The report points out that between 1952 and 1957 the percent- age of biocheinical oxygen removed de- clined from 93.6 percent to 85.6 percent. � The best way to understand the mat- ter, which admittedly is difficult to ex- plain in terms of arithmetic, is that the remainder that was not removed in 1952 was 6.4. The remainder that was not removed in 1957 was 14.4. In other words, there has been more than a doubling of the material. There has been about 110 percent increase in unpurified sewage between 1952 and 1957. Admittedly the problems of the sanitary district are very great. Un- doubtedly the population has increased between 1952 and 1957, MILITARY CONSTRUCTION APPRO- PRIATION BILL, 1959�CONFER- ENCE REPORT Mr. JOHNSON of Texas. Mr. Presi- dent, will the Senator yield for a unan- imous consent request? Mr. PROXMIRE. I yield to the Sen- ator from Texas, if I may do so without losing my right to the floor. Mr. JOHNSON of Texas. I ask unan- imous consent that the Senator from Wisconsin be permitted to yield to the Senator from New Mexico [Mr. CHAVEZ] for the purpose of submitting the con- ference report on the military construc- tion bill (H. R. 13489), with the under- standing that at the conclusion of ac- tion on that conference reportjhe Sen- ator from Wisconsin will be recognized. The PRESIDING OFFICER�, Is there objection? The Chair hears none, and the Senator from New Mexico is recog- nized. , Mr. CHAVEZ. Mr. President, I sub- mit a report of the committee of con- ference on the disagreeing votes of the two. Houses on the amendments of the Senate to the bill (H. R.. 13489) making appropriations for military construction for the Department of Defense for the fiscal year ending June 30, 1959, and for other purposes. I ask unanimous consent for the pres- ent consideration of the report. The PRESIDING OFFICER. The re- port will be read for the information of the Senate. The legislative clerk read the report. ,(For conference report, see House pro- ceedings of August 22, 1958, p. 17666, CONGRESSIONAL RECORD.) The PRESIDING 0..toraCER. Is there objection to the present consideration of the report? There being no objection, the Senate proceeded to consider the report. Mr. CHAVEZ. Mr. President, I move that the conference report be adopted. The PRESIDING OFFICER. The question is on agreeing to the conference report. Mr. RUSSELL Mr. President, I de- sire to make a very brief observation with respect to this report. I did not feel I could conscientiously, as a conferee, sign the report. That feeling grew out of the fact that in my opinion the Senate was compelled to yield on a number of items that are most vital to our defense effort. The Senate was able to secure only about $130 million out of some $500 million, nearrY all of which were pur- chases by the Department of Defense, in the conference report. It might not have been as sad as it was to yield no greater an amount than that if the items the Senate secured had been of the highest priority; but the 'August 23 House conferees were adamant with re- spect to a large number of items not only for which there were budget estimates, but which the Department of Defense had stated were of the very highest priority. I do not, of course, tame my col- leagues on the conference for finally signing this report. I was present at enough of the conference to realize the atmosphere which obtained and the difficulties which confronted them. But I do wish to express my regret that the Senate was compelled to yield on items of the very highest priority, because I feel it will be detrimental to our overall efforts to secure this country against any contingency. Mr. CHAVEZ. Mr. President, with reference to what the Senator from Georgia has stated, I agree with him completely. I shall have a short state- ment inserted in the RECORD. The last paragraph is to the effect that the Senate conferees were not happy with the bill, but the House conferees were firm in op- position to nearly all requests for res- toration. That, in total, details the Senate con- ferees' position on the bill. The PRESIDING "OFFICER.. The question is on agreeing to the conference report. The report was agreed to. Mr. CHAVEZ. Mr. President, I ask that the Chair lay before the Senate a . message from the House of Repre- sentatives with reference to certain amendments of the Senate to H. R. 13489. The PRESIDING OFFICER laid be- fore the Senate a message from the House of Representatives announcing its action on certain amendments of the Senate to House bill 13489, .which was read as follows: IN THE HOUSE OF REPRESENTATIVES, U. S., August 23, 1958. Resolved, That the House recede from its disagreement to the amendment of the Sen- ate numbered 7 to the bill (H. R. 13489) making appropriations for military construc- tion for the Department of Defense for the fiscal year ending June 30, 1959, and for other purposes, and concur therein. , That the House recede from its disagree- ment to the amendment of the Senatnum- bared 2 to said bill, and concur therein with an amendment, as follows: In lieu of the sum named in said amendment insert "$6,250,000." That the 'House recede from its disagree- ment to the amendment of the Senate num- bered 3 to said bill, and concur therein with an amendment, as follows: In lieu of the sum proposed by said ainendment insert "6295,000,000." That the House recede from its disagree- ment to the amendment of the Senate num- bered 10 to said bill, and concur therein with an amendment, as follows: - In lieu of the matter proposed by said amendment insert: "SEC. 612. No part of the funds provided in this act shall be used for purchase of land or land easements in excess of 110 per- cent of the value as determined by the Corps of Engineers or the Bureau of Yards and Docks, except: (a) where there is a de- , termination of value by a Federal court, (b) purchases negotiated by the Attorney.Gen- eral or his designee, and (c) where the esti- mated value is less than $25,000." Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD� SENATE 18015 jion programs for public works for which ap- propriations have been made. Passed Senate March 12, 1958, and passed House March 19, 1958. S. 4021: To authorize( the establishment of a United States study commission which would be responsible for the, preparation of integrated and cooperative investigations, studies, and surveys of land and water re- sources in the southeastern portion of- the United States. The area encompassed by the study includes that portion of the south- east drainage basins which would be bounded on the northeast by the Savannah River Basin, on the south by the St. Marys- Nassau River Basin, and on the west by the Perdido-Escambia River Basin system. Passed Senate August 1, 1958. S. 1985: Authorizing the preparation of plans and specifications for the National Air Museum.under the Board of Regents for the Smithsonian Institution, to be located on the south side of the Mall opposite the Na- tional Gallery of Art, be in keeping with that building, and be prepared by the Gen- �eral Services Administration, the location ap- proved by the National Capital Planning Commission, and the design approved by the Commission of Fine Arts. Passed Senate June 26, 1958. Senate Resolution 248: Declaring the sense of the Senate that the Committees on Interior and Insular Affairs and Public -Works continue the joint study of relation- ship of river and related water resource de- velopment programs of United.States, Soviet Russia, and Red China, and submit their findings and recommendations of ways and means to accelerate the development and uti- lization of the natural resources of the United States. Agreed to by Senate July 28, 1958. S. 3335: To establish in the Smithsonian Institution a Board of Trustees of the Na- tional Cultural Center, composed of 15 speci- fied Federal officials, members ex officio, and 15 general trustees appointed by the President, to cause to be constructed for the Institution, with funds raised by voluntary contributions, a building to be designated as the National Cultural Center on a site in the District of Columbia. bounded by Rock Creek Parkway, New Hampshire Avenue, the proposed Inner Loop Freeway, and the ap- proaches to the authorized Theodore Roose- velt Bridge. The Board would present pro- grams of the performing arts, lectures, and provide facilities for other civic activities. The lands for the National Cultural Center and related activities would be acquired by the National Capital Planning Commission, with plans and specifications for the build- ing approved by the Commission of Fine Arts. Passed Senate June 20, 1958. S. 3712: Authorizes the appropriation of -$4 million to remain available until ex- pended, for completion of the survey and construction of the Rama Road in Nica- raugua, under the provisions of section ,5 of the Federal-Aid Highway Act of 1952. Passed Senate July 28, 1958. S. 3975: To provide for the construction of a fireproof annex building for the use of the Government Printing Office adjacent to the present building, with heating, lighting, one floor air conditioned, for storage of paper and publications. Estimated cost $6,- 500,000. Passed Senate June 26, 1958. H. R. 12776: To revise, codify, and enact into law, title 23 of the United States Code entitled "Highways." A revision and re- statement of all- highway laws since 1916 into one act, for simplification and easier use. Passed Senate August 5, 1958. � S. 4192: To authorize construction of the Bardwell Reservoir on Waxahachie Creek, Tex., for flood control and water conserva- tion, at a total cost of $6,992,000, with local contribution of 61,888,000, leaving Federal cost of $5,104,000. Benefit-cost ratio of 1.10. Passed Senate August 15, 1958- S. 4179: To authorize construction of the Tahchevah Creek flood-control project, at Palm Springs, Calif., at an estimated Federal cost of $1,658,000, and local contribution of 5.8 percent, or $102,000. Benefit cost ratio 1.18. Passed Senate August 18, 1958. S. 4266: To authorize the establishment of a United States 'itudy commission which would be responsible for the preparation of integrated and cooperative investigations:" studies, and surveys of land and water re- sources in that part of the State of Texas which wotild be bounded on the northeast by the Neches River Basin and .on the south and west by the Nueces and Colorado River Basins. Passed Senate August 15, 1958. In- cluded as amendment to H. R, 12216 on August 18, 1.958. H. R. 11697: To amend the act of June 29, 1888, relating to the prevention of ob- structive and injurious deposits in the har- bor of New `York, to extend the application of thaf act to the harbors of Hampton Roads and Baltimore. Estimated annual cost $300,000. Passed Senate August 18, 1958. H. R. 12808: To extend approval of the estimate of cost of completing the Interstate Highway System in each State, transmitted to Congress on January 7, 1958, by the Secre- tary of Commerce, as the basis for making apportionment of $2.5 billion of the Federal funds for fiscal year 1961, and for advancing the date for submission of a revised estimate of cost for completing the Interstate System from January 12, 1962, to January 12, 1961. Passed Senate August 18, 1958. H. R. 2: To authorize the diversion of an additional 1,000 cubi6 feet per second of water from Lake Michigan into the Illinois Waterway through the Chicago Sanitary Canal. Reported to the Senate August 19, 1958. S. 2883: To amend the Legislative Appro- priation Act, 1956, to eliminate the require-- mein that the extension, reconstruction, and replacement of the central portion of the United States Capitol be in substantial ac- cord with scheme B of the Architectural plan of March 3, 1905. Reported to Senate March 7, 1958. Defeated in Senate August 14, 1958. S. 3560: Authorizing construction of a courthouse and a Federal* office building at 'Memphis, Tenn., at an estimated cost of $20 million. Reported to Senate June 4, 1958. H. R. 12883: Providing for certain improve- ments relating to the Capitol powerplant and its distribution systems. Estimated cost $6,550,000. Reported to Senate and passed August 18, 1958. . All in all. I believe that the Committee on Public Works has had one of the most con- structive sessions ever. The committee has worked hard and diligently. I have received the utmost cooperation from the members and the subcommittee chairmen. Our pro- grams have contributed much to the econ- omy of the Nation and to the benefits of our citizens. � Sincerely yours, DENNIS CHAVEZ, Chairman, Committee on Public Works. UNITED STATES SENATE, COMMITTEE ON RULES AND ADMINISTRATION, August 18, 1958. Hon. LYNDON B. JOHNSON, . Majority Leader, United States Senate, Washington, D. C. DEAR SENATOR JOHNSON: As the Congress again approaches adjournment, I desire to make this brief report on the work of the Committee on Rules and Administration. During this 2d session of the 85th Congress, 130 items of proposed legislation were re- ferred to or originated in the Committee on Rules and Administration for consideration. Of that number, 109 measures were actually reported to the Senate, frequently accom- panied by amendments reflecting modifica- tions made pursuant to the committee's studies. Of the remaining 21 items-5 were indefinitely postponed because of collateral action making their further consideration, unnecessary, 1 was rejected, and 15 remain Under review. During the current session, and based on extensive prior hearings, the Committee on Rules and Administration reported Senate Resolution 17, to amend section 2 of Rule XXII of the Standing Rules of the Senate,--: and filed a comprehensive statement on the proposed amendments, together with indi- .vidual views. The committee also reported Senate Resolution 327, agreed to by the Sen- ate on July 24, 1958, which established the new Standing Committee of the Senate, known as the Committee on Aeronautical and Space Sciences. By adjournment, it is expected that the Senate will have authorized additional funds ,for Senate committee activities in the amount of $4,164,250. Of this amount, the Senate has already approved $4,100,500;' the balance of $63,750, being represented by four resolutions pending on the Senate Calendar at this writing. The above total financial authorization represents many individual re- quests contained in resolutions which have been, in turn, analyzed and appraised by the committee before Senate consideration. In addition to its plenary legislative agenda, the Committee on Rules and Admin- istration also dealt with an unusually large number of policy problems and matters of general business which required more than cursory treatment and decision to effect effi- cient management of Senate administration. One of the committee's most challenging cur- rent projects is the utilization of space avail- able to Senators and Senate activities at- tendant upon the occupancy of the New Senate Office Building and the extension of the east front of the Capitol. As chairman of the Committee on Rules and Administration, I am- indebted to my colleagues on the committee who have con- tributed generously of their time and talents to make the above record possible. I am also grateful to the committee's most competent staff on whom the committee has heavily relied for counsel and support. Thanking you for the confidence and co- operation which you have always extended toward the endeavors of the Committee on Rules and Administration, and with kind regards, as always. Yours sincerely, THOMAS C. HENNINGS, Chairman. MAJOR ACCOMPLISHMENTS OF THE JO/NT COM- MITTEE ON ATOMIC ENERGY IN THE 85711 CONGRESS, 2n SESSION The Joint Committee on Atomic Energy can list some solid accomplishments�legis- lative and otherwise�during the 2d session. of the-85th Congress. The Joint Committee is unique in that it Is the only,committee in Congress comprised of representatives of both bodies which has legislative responsi- bilities. Aside from its legislative and investigative work, the committee has traditionally carried on other major activities, including active participation in formulation of policies governing our atomic-energy pro- gram and informational activities designed to create better public understanding of this program. The major accomplishments of the Joint Committee during the 2d session of the 85th Congress may be summarized as follows: First, the committee, after lengthy hear- ings, reported out a bill to facilitate the ex- change of information and materials with, our allies in the field of nuclear weapons de- velopment. The bill was enacted into law on. June 30, ,1958, and approved by the Presi- dent on July 2, 1958 (Public Law 85-479). Immediately thereafter the President sub- mitted a proposed agreement for coopera- tion with the United Kingdom, and hearings � Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 6 � � Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18016 CONGRESSIONAL have been held by the Joint Cominittee on 'it. The committee has submitted a report to Congress in support of the agreement. Second, the committee has reported out an AEC facility authorization bill of some $386,679,000 to provide new construction for the atomic-energy program. The bill also includes provisions concerning the atomic- power program and congressional review of proposed cooperative power projects with nongovernmental organizations. This bill passed the Senate on July 15, 1958, and was approved by the President on August 4, 1958 (Public Law 85-590). In addition to the annual fiscal authoriza- tion legislation, increases in previous au- thorizations were approved by the Congress. AEC's fiscal 1958 authorization was increased in the amount of $35 million for the con- struction of a land prototype destroyer nu- clear propulsion plant to be constructed at West ,Milton, N. Y. The bill passed the Senate on May 7, 1958, and was approved May 16, 1958 (Public Law 85-412). An increase in fiscal 1956 authorization In the amount of $9,406,000 for the particle accelerator program, plus a further increase In fiscal 1958 authorization of the $2,250,000 for project Sherwood passed the Senate on July 2, 1958, and was approved on July 15, 1958 (Public Law 85-519) . Third, the committee and its staff have held informal discussions with the 'AEC on the development of a long-term atomic- power program statement. A staff study, reflecting the substance of these informal discussions will be issued shortly by the committee as a basis for further discussions next session on the long-term aspects of the atomic-power program. Fourth, the- committee held extensive hearings last February on basic research in � the atomic-energy field. Copies of these hearings, together with, a report by the Re- search and Development Subcommittee, are being distributed to Members of Congress, the scientific community and the general public to provide detailed information on basic research work as it is actually being carried* on in our laboratories and universi- ties. These hearings are of great Interest in the atomic-energy field and provided the basis for the committee's recommendations in the authorization bill to increase the present level of support of projects under the AEC physical research program. Fifth, the committee has acted favorably upon two bills providing legislative author- ity for the United States to cooperate with the six nations of 'the European Atomic Energy Community in a joint program of atomic power development. The goal of this program is, to produce 1 million kilo- watts of electric power through nuclear energy in Europe by 1963. The Middle East crisis has given urgency to the need for pro- viding atomic power assistance to Europe as a means of offsetting dependence on Mid- dle East oil. One measure approved by the committee Is a brief statement of intent in the form of a concurrent resolution and the other is a bill to authorize American participation in the program, including funds for research and development and fuel element guaran- tees. These two measures were approved by the Senate on August 18, 1968. Sixth, other bills reported out by the com- mittee during the second session includes in- demnity legislation exempting State univer- sities and other educational institutions from provisions of last year's Indemnity Act providing for governmental indemnity against reactor ha�ards. This hill was passed by the Senate on August 5, 1958. Another bill was reported out providing in- demnity for the atomio merchant ship Savannah. This measure was approved by the Senate on July 28, 1958, and by the RECORD - SENATE President on August 8, 1958 (Public Law 85-602). Finally, the committee >has reported out the AEC omnibus bill, containing certain prodisions including long-term contract au- thority which the AEC considers to be nec- essary for its program. This bill was_ en- acted on August 5, 1958, and approved . by the President on August 19, 1958 (Public Law 85-681) . In addition, the committee held extensive hearings on the raw materials program con- cerned with the AEC announcement of the limitation of mill capacity. As a result of the committee's review of the �suject, the Commission increased its requirements to the satisfaction of the raw materials industry. AS A SENATE DOCUMENT LEGISLATIVE RECORD OF 2D SRS- SION OF 85TH CONGRESS Mr. JOHNSON of Texas. Mr. Presi- dent, I ask unanimous consent that a statement and accompanying legislative review of the legislative record of the 2d- session of the 85th Congress be printed in today's RECORD, and that the same material, with suitable revisions and extensions, be printed as a Senate document. The PRESIDING Or.toiCER. Without objection, it is so ordered. There being no objection, the state- ment and review were ordered to be printed in the RECORD, as follows: SUMMARY OF THE LEGISLATIVE RECORD, 85m CONGRESS, 2D SESSION, JANUARY 7, 1958, TO AUGUST 24, 1958 Statement by the Honorable �LYNDON B. Jorn�soN, United States Senator from Texas, together with digests of legislation passed by the Senate MAJOR LEGISLATIVE ACTIONS 85TH CONGRESS, 20 SESSION (PASSED BOTH HOUSES AS OF AUGUST 23, 1958) National Defense and Internal Security 1. Reorganization of the Department of Defense. 2. Authorized $54.6 million for expansion of missile bases and warning systems and created ARPA. 3. Authorized $386 million for AEC con- struction and expansion. 4. Authorized atomic powered destroyer. 5. Military Compensation Act. International Affairs 1. Authorized $3.03 billion for mutual se- curity program. 2. Reciprocal Trade Act. 3. Authorized exchange of mutually essen- tial atomic information and materials with � allies. 4. Increased lending authority of Export- Import Bank by $2 billion. 5. Adjustment of status of 30,000 Hun- garian escapees. 6. Resolution relating to the establishment of an international plan for the peaceful exploration of outer space. Governmental Organization 1. National Aeronautics and Space Act of 1958. 2. Admitted Alaska as a State to the Union. 3. Classification Act employees increase. 4. Authorized training of Government employees in outside schools. 5. Increased the jurisdictional amount re- quired for civil suits in Federal courts. 6. Passed Freedom of Information Act. 7. Adopted act providing for improved budgetary procedures. 8. Federal Aviation Act. August 23 National economy 1. Einergency $1.8 billion Housing Act. 2. Increased $4 billion authorization for FHA mortgage insurance. 3. Authorized $5.5 billion for highway construction, including $1.8 billion addi- tional to create jobs and expedite work. 4. Provided optionally to States, for repay- ment in 5 years, up to 15 weeks additional unemployment compensation. 5. Authorized Federal guarantee of rail- road loans up to $700 million. 6. Increased postal rates and postal pay. 7. Authorized advanced purchases of sup- plies and equipment from fiscal year 1959 appropriations to stimulate business. 8. Broadened lending authority of Small Business Administration. 9. Small Business Administration made permanent, its lending authority increased and interest rates reduced. 10. Authorized constiruction and sale by Maritime Board of two passenger super- liners. 11. Small Business Investment Act. 12. Small Business tax relief. 13. Extend the Renogotiation Act. Agriculture 1. Barred reduction of 1958 farm price sup- ports below 1957 level and barred cuts in acreage allotments for 2 years. (Vetoed.) 2. Extended soil conservation program for 4 years. 3. Extended _Agricultural Trade Develop- ment and Assistance Act for sales of sur- pluses abroad. 4. Agricultural Act of 1958. Natural fesources 1. Authorize $1.5 billion for flood control, rivers and harbors. 2. Extended program for critical material exploration. Social Security, Health and Welfare 1. Extended for 3 years special school milk program with authorization of $75 million annual expenditure. 2. Authorized $1 million grants-in-aid to train public- health specialists, technicians and administrators. 3. Increased civil-service annuities. 4. Extended for 3 years the Hill-Burton Hospital Survey and Construction Act. 5. Authorized the largest expenditures in history for medical research-$294,383,000, which exceeded ' the budget estimate of $211,183,000 by $83,200,000. The amounts provided for the various research activities as compared with the budget estimates are: [In millions of dollars] Appro- Activity Budget priation Increase General Re- search $17,742 $28974 $11232 Cancer 55.923 75.268 19.343 Mental Health 37, 697 52.419 14.712 Heart 34.712 45.613 10.901 Dental 6.293 7.420-1. 127 Arthritis 20. 592 31. 215 10. 623 Allergy 17. 497 24.071 6.574 Neurology 20. '727 29. 403 8. 676 6. Extended� Federal assistance programs for school construction in areas affected by Federal aotivities. 7. Required reporting and full disclosure of employee welfare and pension funds. 8. National Defense Education bill. 9, Area Redevelopment Act. 10. Authorized grants to expand teaching In the education of mentally retarded chil- dren. 11. Authorized agencies of the United States to make grants to support scientific research. 12. Enacted Food Additives Act. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 � Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD � SENATE DIGEST OF LEGISLATION PASSED BY THE SENATE OF THE 'UNITED STATES DURING. THE 20 SESSION OF THE 85TH CONGRESS (CON- VENED JANUARY' 7, 1958, ADJOURNED AUGUST 24, 1958) Agriculture Price Supports and Acreage Allotments S. J. Res. 162: This resolution would have barred reduc- tions in price support for 1958 and in acreage allotments for 1958 and 1959 for all basic commodities except tobacco (which is cov- ered by other legislation). It was the intent of Congress to prevent the drop in price supports Secretary of Agri- culture Benson scheduled for the 1958 crops, some effective on April 1, 1958. Presiden- tial veto March 31, 1958. Farmer Committeemen S. 1436: This measure amends section 8 (b) of the Soil Conservation and Domestic Allotment Act to provide for the democratic' election of firmer-committeemen to local and county committees. Members of State committees are to be appointed- by the Secretary, but 1 member, if the State committee is Composed of 3 farmers, or 2 members, if the State committee is composed of 5 farmers, are to be appointed from nominees chosen at an election by the members of the county com- mittee. P. L. 85- approved , 1958. Agriculture Soil Bank�Equity for Producers S. 2937: This measures authorizes the Secretary of Agriculture to compensate producers for hardships suffered under the 1956 Soil Bank program as a result of incorrect informa- tion furnished by county committees. The 1956 program was put into effect hurriedly after the Agricultural Act of 1956 was ap- proved, and certain mistakes occurred. As a result of these Mistakes, some pro- ducers have suffered hardships due to being given erroneous information by county com- mittees or due to the failure of county com- mittees to properly inform them as to pro- gram requirements. Public Law 85-413, approved May 16. 1958. Insurance of Loans Under Bankhead-Jones Farm Tenant Act S. 3333 : This bill amends the Bankhead-Jones Farm Tenant Act and the Water Facilities Act, so as to facilitate the making and insur- ing of loans by the Secretary of Agriculture for the acquisition, enlargement, or ithprove- ment of farms and the conservation of soil and water resources thereon, make such loans more attractive to investors, make the pro- gram self-supporting to a greater degree, fa- cilitate the refinancing of such loans on an uninsured basis and make such insured loans eligible for investment for certain banks. It will accomplish these objectives by� (1) Authorizing the conversion of direct loans into insured loans; (2) Authorizing limited use of the mort- gage insurance fund in making loans; if they can and will be converted to insured loans without undue delay; (3) Authorizing the Secretary of Agricul- ture to receive a larger share of the interest payments on loans sold on an insured basis than he receives under existing law on in- sured loans; (4) Authorizing the sale of any loan as an uninsured loan with the written consent of the borro'wer, or without such consent when the borrower has failed to comply with his agreement to refinance from another source when it is possible to do so at the prevailing rate; (5) Giving the Secretary of the Treasury discretion to fix the interest rate on borrow- ings from the Treasury for use of the mort- gage insurance fund, taking into considera- tion the "current average market yields of outstanding marketable obligations of /the United States" having comparable maturi- ties (such interest rate is now fixed by law at "the average rate of interest * * * borne by all interest-bearing obligations of the United States * ,* *; and (6) Amending the National Bank Act to permit a national bank to loan as much as 25 percent (instead of 10 percent) of its capi- tal and surplus to 1 individual in the case of loans insured by the Secretary of Agricul- ture under the Bankhead-Jones Farm Tenant Act or the Water Facilities Act. Public Law , approved , 1958. Agriculture Armed Forces Dairy Products Program�Extension S..3341 : This measure extends the Armed Forces dairy products program for 3 years until December 31, 1961. In addition, it extends the benefits of this program to the Coast Guard, and the Merchant Marine Academy. The authority for the program is con- tained in section 202 of the Agricultural Act. of 1949, which requires the Commodity Credit Corporation to make dairy products acquired through price-support operations available to (1) the Administrator of Vet- erans' Affairs to supplement the ration in VA hospitals, and (2) 'the Secretary of the Army to supplement the ration of the Army, Navy, and Air Force and the ration of De- fense Department hospitals. Similar pro- vision is made for supplementing the ration of the Coast Guard and the Merchant Marine Academy. Passed Senate by voice vote March 3, 1958. Agriculture Special School Milk Program� Extension S. 3342: This measure extends the special school milk program for 3 years to June 30, 1961. The present authority for this program is contained in the Agricultural Act of 1949. In order to recognize the primary purpose of the program as improv,ed nutrition for schoolchildren, the extension is by separate legislation and not amendatory of the 1949 act. This measure specifies that amounts ex- pended under either the original or the ex- tended program shall not be considered as amount expended for price support purposes. This program includes all schoolchildren, all nonprofit nursery schools, child-care cen- ters, settlement houses, summer camps, and similiar nonprofit institutions devoted to the care and training of underprivileged children. Pulic Law 85-478, approved July 1, 1958. Brucellosis Eradication Program� Extension S. 3343: This measure extends the accel- erated brucellosis eradication program for 2 years until June 30, 1960. This program is provided for by the Agricultural Act of 1954, which authorizes the transfer of $20 million of Commodity Credit Corporation funds an- nually to the appropriation available for brucellosis eradication to accelerate the pro- gram through (1) increasing indemnities; (2) increasing the number of indemnities; and (3) defraying additional administrative expenses. Passed Senate by voice vote March 3, 1958. Agricultural Trade Development Act� Extension S. 3420: This measure extends for 2 years, through June 30, 1960, the Agricultural Trade Develqpment and Assistance Act.- In- creases from $4 billion to $4.5 billion in fiscal 1958, to $6 billion in fiscal 1959, and $7.5 billion in fiscal 1960 the amount of surplus agricultural commodities which may be sold for foreign currencies to friendly nations. 18017.. Enlarges the uses which may be agreed upon for the foreign. currencies acquired under title I to include the educational ex- change. of agricultural leaders, labor lead- ers, journalists, and civil leaders; and as- sistance to schools and workshops. Prohib- its discriminatory treatment of extra long staple cotton under Public Law 480. Passed Senate by voice vote March 20, 1958. Noxious-Plant Control�Federal Lands S. 3861: This measure provides for the application of State weed-control plans to Federal lands. It authorizes the State commissioner of agri- culture to destroy noxious plants on Federal lands if the agency having jurisdiction of the lands consent, and has not already colt- plied with the requirements of the program. Requires the Federal Government to reim- burse a State upon presentation, of an item- ized account of the expenses incurred as a result of complying with the program. Passed Senate May 21, 1958. S. 4071. Agricultural Act of 1958 This measure provides more effective price, production adjustment, and marketing pro- grams for various agricultural commodities. The bill provides for: Cotton: 1. A program for upland cotton for 1959 and 1960 under which producers can elect to take a 40-percent increase in their acreage allotments coupled with a 15-per- cent-of-parity reduction in price support. Price support for those choosing higher sup- port will be by purchase only, and Commod- ity Credit Corporation would be required to sell cotton at not less than 110 percent of the lower support. 2. Upland cotton price support after 1960 at 90 percent of the average market price of middling 1-inch cotton for the preceding 3 years, but not less than 30 cents per pound or -60 percent of parity, whichever is higher. 3. Minimum upland cotton marketing quotas after 1960 adequate to assure a stable supply to meet world needs, but not less than the larger of (a) domestic consumption and exports less 1 million bales or (b) 10 million bales. 4. A minimum national upland cotton- acreage allotment of 16 million acres. 5. A new formula for computing national marketing quotas for extra-long-staple cot- ton after 1960, designed to minimize the effect of carryover. 6. Use of a 3-year adjusted yield instead of a, 5-year yield in converting the national marketing quota to a national acreage allot- ment. 7. Permanent, extension of the small farm cotton-allotment provisions of existing law with amendments to (a) increase the na- tional reserve to meet States needs for acreage to eStablish minimum farm allot- ments to 310,000 acres; (b) increase the min- imum farm allotment to 10 acres or the 1958 allotment, whichever is smaller; and (c) permit estimation of States' needs after 1959 to save the cost of making a trial allotment to determine such needs. 8. Allotment of such further acreage as may be necessary to increase each farm- acreage allotment to the prescribed mini- mum, with provision that no part of the additional acreage allotted to States, coun- ties, or farms by reasons of provisions relat- ing to minimum allotment shall be counted in computing their respective allotments. 9. Use of the previous year's allotment as a base in masking allotments, if it will fa- cilitate effective administration. 10. Retention of surrendered cotton acre- age in the county so long as any cotton farm desires it. 11. Use of Middling 1-inch instead of Middling seven-eighths as the standard grade after 1960. 12. Effective August 1, 1961, increase of minimum prices for Commodity Credit Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18018 CONGRESSIONAL, RECORD - SENATE Corporation sales of cotton for unrestricted use to 115 percent of the current support price plus reasonable carrying charge; and exemption from this requirements of a quan- tity equal to that by which the national marketing quota is less than domestic con- sumption and exports. 13. Express preservation of the cotton ex- port sales program provided for by section 203 of the Agricultural Act of 1956. 14. Purchase by Commodity Credit dur- ing 1959 and 1960 marketing years of an amount of cottonseed and soybean oil equal to the amount of increase in such oil production by reason of the production of cotton on increased acreage allotted to farmers; and the donation of oil so pur- chased for use to aid needy persons outside the United States. Corn and Feed Grains: 1. Discontinuance of corn-acreage allotments and the com- mercial corn-producing area. 2. Price support for corn at 90 percent of the 3-year average price, but not less than $1.10 per bushel or 60 percent of parity, whichever is higher. 3. Price supports for oats, rye, barley, and grain sorghums at fair and reasonable levels in relation to corn, but not less than 60 per- cent of parity. 4. Repeal of the provision for a different corn-support level in the noncommercial area. Rice: 1. Permanent extension of the pres- ent minimum national and State acreage -allotments. 2. Price support for 1959 and 1960 at be- tween 75 and 90 percent of parity without regard to the supply percentage. 3. Price support, beginning in 1961, at 90 percent of the 3-year average price, but not less than $4 per hundredweight or 60 percent of parity, whichever is higher. 4. Review of farm-acreage `allotment for -1959 crop, if farmer dissatisfied. Wool: 1. Extension of National Wool Act of 1954 to March 31, 1963. 2.- Ceiling of 85 percent of parity on sup- port price, beginning with 1959, if Secretary determines that expenditures by the Com- modity Credit Corporation for payments to �producers will exceed the 70 percent of gross receipts of specific duties specified in sec- tion 705 of the Wool Act as a limitation on appropriations. Public Law 480: 1. Agreements. for sale of surplus agricultural commodities for for- eign currencies in each fiscal year up to $1.5 billion plus any amount by -which agreements entered into in prior fiscal years, beginning with fiscal year 1958, will call for � appropriations to reimburse the Commodity Credit Corporation in amounts less than au- thorized. , 2. Use of foreign currencies for financing interchange of persons programs, and for ex- panding and operating in foreign countries of schools to carry on vocational, profes- sional, scientific, technological, or general education programs and to support work- shops in American studies or educational techniques or chairs in American studies. 3. Extension of authority to enter into transactions until June 30, 1960. 4. Limitation of authority of Commodity Credit Corporation to acquire strategic or critical materials by barter or exchange to acquisitions for national and supplemental stockpiles, foreign assistance, -and offshore construction programs. 5. Making available for sale of extra-long- staple cotton in same manner as any other surplus agricultural commodity is made available, and making available for sale of products from upland or,long-staple cotton as long as cotton is in surplus supply. (For complete information on S. 4071, see Vote Nos. 142-148.) Industrial Uses of Agricultural Products S. 4100: This measure: 1. Declares the need for developing new and improved uses for farm products and that public and private research agencies and others should be used for an all-out at- tack on the development of new and im- proved uses and new and extended markets and outlets for farm products and byprod- ucts. 2. Establishes in the Department of Agri- culture, the Agricultural Research and In- dustrial Administration with the duty to coordinate and expedite efforts to develop, through research, new industrial uses, and increased use under existing processes, of agricultural products; to develop new re- placement crops; and to reduce the stock of commodities owned by the Commodity Credit Corporation. - 3. Authorizes the new agency to provide graduate scholarships and fellowships .and for this purpose to make grants to individ- uals. Public Law -, approved � Uniform Provisions for Transfer of Acreage Allotments S. 4151: This measure amends the Agricultural Ad- justment Mt of 1938 to substitute a pro- vision treating all commodities alike for the existing varying sections providing for the transfer of acreage allotments for cotton, peanuts, rice, tobacco, and wheat in cases where farms are acquired by agencies having the right of eminent domain. A uniform provision will be more equitable, easier to administer, and better understood by farm- ers. It is particularly needed at this time in view of the lands being acquired under the highway program. Passed the Senate August 11, 1958. Mexican Farm Labor S. 4232: Extends the Mexican farm labor program for 1 year until June 30, 1960. Under that program the Secretary of Labor recruits agri- cultural workers from Mexico pursuant to an agreement with the Republic of Mexico and subject to conditions designed to protect the rights of both foreign and domestic workers. Passed the Senate August 14, 1958. Study of Tobacco Marketing Practices Senate Resolution 334:" Authorizes the Committed on Agriculture and Forestry to make a complete study of all matters pertaining to tobacco marketing practice related to loose and tied tobocco in order to determine why tobacco farmers re- ceive a price differential for tying tobacco in some States and not in others, and requires a report by January 31, 1959. Passed Senate, August 6, 1958. Onion Futures H. R. 376: This measure provides that no contract for the sale of onions for future delivery shall be made on or subject to the rules of any board of trade. A violation is made a mis- demeanor subject to fine. Public Law , approved , 1958. Cotton Acreage Reports H. R. 6765 : This measure changes the existing law re- lating to cotton-acreage reports by- Basing the July cotton-acreage report on planted acreage instead of acreage in culti- vation; Advancing the second cotton-acreage re- port from September 1 to August 1, the be- ginning of the marketing year; and Permitting the Department of Agriculture to report on farmers' intentions to plant cotton by removing the present prohibition. Public Law 85-430, approved May 29, 1958. August 23 Forest Service Administration H. It. 7953: This measure is designed to facilitate and simplify the work of the Forest Service by: Raising the limitation from $50 to $2,500 on reimbursment to owners of equipment rented under verbal agreement for dam- ages occurring while in use by the Forest Service. Authorizing contracts with private parties to train, work, and care for Government- owned pack stock held in reserve for fire- emergency purposes. Permitting reimbursement to employees for casualty damages to personal effects oc- curring at places of temporary storage While the employees are engaged in connection with these casualties. Authorizing the Government to pay for transporting employees' automobiles be- tween points in Alaska, in connection with transfer of official stations. Permitting the Government to pay the cost of- notifying employees in isolated locations of serious illness or death of close relatives, and the cost of transporting these employees to the nearest public transportation. Permitting the transfer to States of fire- lookout towers and other improvements for fire control no longer needed by the Forest Service. Broadening existing authority to pay for telephone calls for official use in private residences. Permitting money received from forfei- tures, judgments, or settlements to be used to carry out the work made necessary by the action which led to the forfeiture, judg- ment, or settlement. Permitting payment of costs of publishing technical articles in scientific publications. Increasing the amount available for pur- chase, of administrative sites from $25,000 to $50,000 a year. Public Law 85-464, approved June 20, 1958. 1958. Humane Slaughter of Livestock and Poultry H. It. 8308: The measure: 1. Declares it to be the policy of the United States that the slaughtering of livestock and the handling of livestock in connection with slaughter shall be carried out only by humane methods. 2. Defines as humane slaughter, (a) the rendering of the animal insensible to pain by a single blow or gunshot or an electrical, chemical, or other means that is rapid and effective before being shackled, thrown, cast, or cut; or (b) slaughter in accordance with religious_ requirements of the Jewish faith or any other religious faith which prescribes a method where the animal loses conscious- ness by anemia of the brain through the simultaneous and instantaneous severance of the carotid arteries witha sharp instru- ment. 3. Forbids after June 30, 1960, except in period of national emergency, the procure- ment by any agency of the United States of livestock products produced in the plant of a slaughterer using methods not approved by the Secretary of Agriculture as humane. 4. Authorizes Secretary of Agriculture to conduct research into the development of humane methods. 5. Authorizes Secretary to designate, on or before March 1, 1959, methods conforming to the policy of the bill but permits him to designate methods not in conformity with the policy if he deems it more effective. - 6. Authorizes the establishment of an Ad- visory Committee. 7. Presserves the religious freedom of any person or group against abridgement and exempts from the terms of the bill -retaik slaughter of livestock and the handling and Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD � SENATE preparation of livestock for slaughter. Re- tail slaughter is defined as slaughter in ac- cordance with religious practices as set forth in section 2 (b). Public Law �, approved �, 1958. Rice Acreage Allotments . H. R.8490: This bill makes several technical changes In the rice acreage allotment law to improve the administration of the . program by-L. Restricting old producer allotments in any State to those with production history in that State; Preventing a producer or a farm from be- coming an old producer or farm by plant- ing rice without an allotment; Preventing a producer from becoming an old producer by reason of engaging in pro- duction jointly with another who was en- titled to the allotment and received the en- tire production history on the allotment; Permitting the Secretary of Agriculture to divide a State into two areas and make allot- ments on a producer basis in one area and on a farm basis in the other area; Providing for pooling allotments of lands acquired by agencies having the right of eminent domain, and using the pooled allot- ments to establish allotments for other farms owned or acquired by the former owners of the lands. Increasing the marketing penalty to 65 percent of parity; and Providing for terminating previous quotas whenever current quotas are terminated. Public Law 85-443, approved June 4, 1958. Soil Bank Contracts H. R. 10843: This measure permits 'farmers in 38 count. ties designated in 1958 as commercial corn areas to remain eligible for soil bank pay- ments even if they did ndt comply with their 'new acreage allotment requirements. It further provides that if there is an acreage reserve program in 1959, the same ex- emptions will apply for counties added in 1959, except to be eligible, participants must sign up for the acreage reserve before Jan- uary 1, 1959. Public Law 85-369, approved April 7, 1958. Tobacco Acreage Allotments H. R.11058: This measure amends the Agricultural Ad- justment Act of 1938 to provide that in the event a second crop of tcibacco 'is harvested for marketing from the same acreage, the allotment next established for the farm shall be reduced by an amonnt equivalent to the acreage from which more than 1 crop of tobacco was grown and harvested. f Public Law 85-489, approved July 2, 1958. Agriculture Wheat Acreage History H. R. 11086 : This measure is designed to prevent any farm from losing acreage history by reason of overplanting its allotment in 1958. It will prevent any State, county, or farm from losing acreage history by reason of the over- Planting of any farm allotment in 1959 or any subsequent year if the farm marketing excess is delivered to the Secretary or stored to avoid penalty. Under-Public Law 203, approved on August 28, 1957, Congress provided that acreage planted in excess allotments would not count as- history toward future allotments; how- 9ver, by the time this information was con- veyed to farmers many had already planted their wheat crops. By changing the rules without adequate notice, the existing law imposed an excessive penalty or would com- pel the farmers to plow up acreage already planted which would result in loss to them. Public Law 85-366, approved April 4, 1958. Long Staple Cotton�Price Support H. R. 11399: This measure establishes the price sup- port level for extra long staple cotton at not more than 75 percent of parity nor less than 60 percent of parity. At present, this commodity is supported at 75 percent of parity. Extra long staple cotton is a specialized' Commodity which is produced in this coun- try in only relatively small quantities and in a limited area. Its natural competitors are similar cotton imported from a few for- eign areas and certain synthetic fibers. It is the belief of the producers, that a support level of not more than 75 percent will provide them an adequate' return, and will maintain the market position achieved through a highly successful promotion campaign. Public Law 85-497, approved July 2, 1958. Special Livestock Loans H. H. 11424: This measure extends for 2 years, through July 14, 1961, the authority of the Secre- tary of Agriculture to extend or make/ sup- plementary advances in connection with spe- cial livestock loans which have been made under existing law providing for various ;types of disaster and emergency loans. This bill affects only the authority of the Secretary to make supplemental advances or renewals of existing loans in order to more effectively protect the Government's interest. It does not authorize new loans. Public Law 85-516, approved July 11, 1958. Poisonous Seed Wheat H. R. 11581: This measure seeks to plug a loophole in the import laws whereby foreign countries, can treat wheat with poisonous substances' to prevent diseases, label it "unfit for human consumption" and pay an import duty of 5 cents per bushel instead of 21. The bill re- quires that wheat for seed purposes which has been treated to make it unfit for human consumption be classified as "wheat" rather than "wheat unfit for human consumption." Public Law , approved Nonprofit (Summer Camps�Surplus Foods II. R. 12164: This measure clarifies existing law relating to the authority of the Secretary of 'Agri- culture to donate surplus food commodities to nonprofit children's summer camps. Un- der existing provision of law, nonprofit school-lunch programs are eligible to receive surplus food commodities e.nd the Depart- ment of Agriculture has been following the general policy that nonprofit summer camps are an extension of the school activity and should likewise be eligible to receive surplus foods. This bill clarifies this provision of law so as to leave no doubt that summer camps for children, operated on a nonprofit basis, have the same eligibility to receive surplus foods as do nonprofit school-lunch programs. Public Law 85-483, approved July 2, 1958. Peanut Acreage Allotments H. R. 12224: This measure makes two minor changes in the peanut marketing quota law. Pro- duction of peanuts without an allotment will not affect the farm's status as new or old. Present provision permitting any farm to harvest up to 1 acre for nuts without penalty will not be applicable if the pro- ducers share in peanuts produced on any other farm. Public Law , approved Farm Acreage Allotment HR. 12602: This measure permits the transfer of 1958 cotton acreage allotments in disaster areas from farms, on which they cannot be timely planted or replanted, to farms in the same or adjoining counties on which the same producers are engaged in cotton production. It would be effective only in counties where a substantial number of farms were affected-, and transfers could be made only if 18019 authorized by the Secretary. of Agriculture. Many cotton farms are now under water so they either cannot be planted, or having been planted, cannot be replanted. These farmers, as a result, will lose their principal cash crop for 1958. This bill provides a means whereby they-might obtain some relief if they were able to make arrangements to plant their crops on lands not under water. Public Law 85-156, approved June 11, 1958. Tobacco Allotments ' H. R. 12840: . Authorizes the Department of Agriculture to combine allotments for Virginia fire-cured and Virginia sun-cured tobacco on any farms having -allotments for both types. Public Law , approved Flour and Corhmeal HR. 13268: Authorizes the Commodity Credit Corpora- tion to purchase flour and cornmeal and to donate it under flour and cornmeal done- tion programs." Public Law �, approved Hall of Fame for Agriculture House Concurrent Resolution 295: The purpose of this concurrent resolution is to encourage efforts which are being made by private citizens to establish a Hall of Fame for Agriculture. Some of the most distinguished agricultural leaders of the country have been enlisted in the efforts to establish a hall of fame to commemorate and keep alive the great contributions which agriculture has made to the' greatness and prosperity of the United States. Passed the Senate August 11, 1958. � District of Columbia Heliport�Study Senate Joint Resolution 167: This resolution authorizes the Commission- ers of the District of Columbia to make a study of all factors involved in the construc- tion of a heliport within the District, includ- ing recommendations of a site. Passed Senate May,7, 1958. District of Columbia�Fish and Game Laws S. 532: s This measure authorizes the Board of Com- missioners of the District of Columbia to promulgate appropriate regulations to revise - and modernize the fish and game laws of the District. Public Law , approved � District of Columbia�Commissioners--Addi- tional Powers S. 1706: This measure grants additional powers to the Commissioners of the District of Colum- bia to authorize them to: Purchase, sell, and to give to certain per- sons, institutions, and governmental agen- cies, both municipal and Federal, at the dis- cretion of the Commissioners or their desig- nated agent, copies of various municipal regulations: �.� Make advance payments to Federal agen- cies for supplies to be ofurnished or work to be performed in accordance with agreements between the Commissioners and agencies; Emlibwer the Commissioners to authorize the several departments, establishments, bu- reaus, and offices of the government of the District of Columbia to place 'orders with other agencies of the District, and to make payment for such orders either in advance or on a reimbursement basis. Public Law 85-491, approved July 2, 1958. Substitute Teachers S. 1841: This measure authorizes the District Of Columbia Board of Education to employ retired teachers as substitute teachers. Difficulty has been experienced by the Schools in maintaining a sufficient list of substitute teachers in the District. An aver- age of 131 substitute teachers are used daily in the District of Columbia public schools. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18020 CONGRESSIONAL RECORD � SENATE The act provides that the retirement an- nuities of such substitute teachers will not be interrupted by becoming employed in this capacity: Public Law 85-385, approved April 24, 1958. District of Columbia Recreational Board S. 1843: . This measure permits the Recreation Board of the District of Columbia to prescribe rules and regulations governing the payment of night differential for nonregularly scheduled work of its employees who are subject to the Classification Act of 1949. Public Law 85-383, approved April 23, 1958. District of Columbia Compensation Act Amendment S. 2419: This measure makes possible a variety of desired administrative changes in the appli- cation and operation of the Unemployment Compensation Act in the District of Colum- bia. � Among the changes accomplished are:, Exeinpts from the operation of the act per- sons employed by Members of Congress. Wages unpaid solely because of a court order appointing a fiduciary would be con- sidered paid when due. Stops the running of interest upon unpaid contributions when these nonpayments re- suit from bankruptcy receivership or probate court proceedings. Permits a 15-day grace period before the in- vocation of penalty provisiOns for late filing of reports or payment of contributions. Public Law 85-557, approved July 25, 1958. District of 'Columbia�National Council of Negro Women, Inc. S. 2725: This measure exempts from taxation prop- erty owned and occupied by the National Council of Negro Women, Inc., located at 1318 Vermont Avenue NW., Washington, D. C. This exemption applies so long as the property is owned and occupied by the Na- tional Council and is not used for commer- cial purposes. The National Council was incorporated in the District of Columbia on June 26, 1936, and is a charitable and volunteer organiza- tion. It is a coordinating body of 22 na- tional affiliates and some 90 local and junior councils, having � a total membership of 850,000 women throughout the United States. The headquarters serve both the na- tion-al and loeal activities of the organiza- tion. Private Law 85-388, approved April 23, 1958. ' Civil Defense�District of Columbia S. 2728: This measure makes a number of clarify- ing amendments to the 1950 act setting up an Office of Civil Defense for the District of Columbia. Passed the Senate August 14, 1958. . District of Columbia�Teachers' Salary Act, Amendment S. 3057: This measure increases the salary of the Superintendent of Schools of the District of, Columbia to $22,000 a year. A study of the salaries paid the superintendents of schools in 18 cities of the United States having a population of more than 500,000 currently places Washington, D. C. in 18th place in terms of salary paid to its Superintendent of Schools. Public Law 85-552,-approved July 25, 1958. Damage Actions S. 3058: Under existing law there is no right of action against the District of Columbia for unliquidated damages to persons or prop- erty unless: the claimant within 6 months after the injury or damage was sustained- gives notice in writing to the CoMmissioners of the approximate time, place, cause, and circumstances of the injury or damage, ex- cept that a report in writing by the Metro- politan Police Department is regarded as sufficient notice. . This measure changes the time for giv- ing notice of unliquidated damages to per- Son or property from 6 months to 60 days. This is similar to provisions in statutes of 15 of the States. In the event injury or damage is caused, by snow or ice, or both, the notice must be given ,within 10 days after the injury or damage was sustained, with a proviso that if by reason of physical or mental incapacity, the person injured fails to give such notice within such 10-day period, the claimant, under this measure, may give notice within 10 days after the incapacity has been re- moved. This measure omits proviso in existing law, that a report in writing by the Metropolitan Police Department in regular course' of duty shall be regarded as sufficient notice. Provision is made that this act shall ap- ply to all actions for unliquidated damages to person or property brought against the- District of Columbia against unreasonable, claims for damages and at the same time offer adequate protection to the rights of individuals. Passed Senate June 9, 1958. . District of Columbia�Unsafe BuildingS S.3059: This measure amends the act to authorize the Commissioners of the District of Colum- bia 'to remove dangerous or unsafe buildings. The Commissioners are authorized to require- that unsafe structures be vacated under penalty of $300 fine or imprisonment of not to exceed 30 days after 5 days' notice to repair or take corrective action has been given, or immediately if the danger is imminent. Establishes time limits and changes the present method for assessment and collec- tion of costs for repairs made by the Dis- trict upon unsafe structures, including changes in the "grace period," during which interest does not run,. from 90 days to 60 days, and changes the rate of interest from 10 percent a year to one-half of 1 percent a month. Permits administrative changes in the methods of serving notice upon the owners of property to simplify and standardize the Procedures. Passed Senate March 17, 1958. District of Columbia�Teachers College� Foreign Students S. 3243: This measure permits a total of 25 for- eign students who are in the United States on valid unexpired student visas to attend the District of Columbia Teachers College without the payment of tuition. By grant- ing this permission, there is created a special exception from present law which prohibits the use of District of Columbia appropria- tions for the free tuition of pupils who are not residents of the District. Public Law 85-384, approved April 23, 1958. District of Columbia�Uniform Simultaneous Death Act H. R. 3486: This measure is designed to enact for the District of Columbia the Uniform Simultane- ous Death Act. It will provide the District with an orderly plan for the distribution of estates which are dependent upon survivor- ship, where there has been a common disaster and insufficient evidence as ,to survivorship. Similar acts have been adopted in 39 of the 48 States. Public Law 85-356, approved March 28, 1958. Levying and Collecting of Taxes and Assess- ments, District of Columbia S. 3510: The purpose of this measure is to enable the notice of special assessments for public. improvements to be served either by regis- August 23 tered mail or by personal service, and thereby give the Government of the District of Co- lumbia an alternative method of service not present in existing legislation: Passed the Senate, August 11, 1958. Delivery of Sewage from Virginia td the Sewerage System of the District of Colum- bia S. 4153: This measure authorizes the Commission- ers of the District of Columbia, from time to time, to enter into and renew agreements, for such periods as they deem advisable, with the proper authorities of the State of Vir- ginia, to provide for the drainage of sewage originating in Virginia into the sewerage sys- tem of the District of Columbia for treat-- ment and disposal. The bill provides fur- ther that the Virginia authorities shall pay all or part of the cost, of construction and maintenance facilities necessary as deter- mined in the individual agreements. Public Law , approved Stream Valley Parks in Maryland 1.11. 3778: The first section of the act approved May 29, 1930, as amended, authorizes the appro- priation of $7,500,000 for the development of the George Washington Memorial Parkway outside of the District of Columbia, and au- thorizes $1,500,000 for the extension of Rock Creek Park into Maryland. H. R. 3778 amends this sectiOn of the act so as to authorize the National Capital Planning Commission and the Maryland-National Capital Park and Planning Commission, by agreement, to use funds authorized for the George Washington Memorial Parkway for the extension of Rock Creek Park. Public Law �, approved Potomac River Bridges H. R. 6306: This measure amends the act of 1946 which authorized the construction of two 4-lane bridges across the Potomac River to replace the bridge known as the 14th Street or High- way Bridge.' The cost in 1946 was estimated to be approximately $7 million; however, the extremely rapid inflationary cost of heavy construction has resulted in the final cost of the first of the two bridges amounting to about $6,800,000, or substantially the -amount authorized by Congress for both bridges. Present plans calls for the construction of the second of the two authorized spans, at a cost, together with approaches, of ap- proximately $9,200,000. To complete this work, this measure increases the authoriza- tion to $16 million to take care of the second bridge. Public Law 85-501, approved July 3, 1958. 'Federal Probation Act H. R. 7261: This measure makes the Federal Probation Act applicable to the United States District Court for the District of Columbia, as ap- proved by the Judicial Conference of the United States. Public Law 85-463, approved June 20, 1958. Criminal Cases�Executing Bonds H. R. 7349: � This legislation amends the act of March 3, 1933, which regulates the business, of ex- ecuting bonds for compensation in criminal cases in the District of Columbia to ac- complish the following purposes: To remove the obsolete and substitute the current name of the various courts. To give the United States District Court for the District of Columbia jurisdiction to make rules prescribing the qualifications of persons engaged in the bonding business. Puplic Law 85-537, approved July 8, 1958. EXTENSION OF POLICEMEN AND FIREMEN'S RE- , TIREMENT AND DISABTLITY ACT AMENDMENTS H. R. 7450: The purpose of this act is to extend to Widows and children of policemen and fire- 7. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD - SENATE men who were retired prior to the effective date contained in Public Law 85-157, which was October 1, 1956, the same survivorship benefits as accrue to the survivors of police- men and firemen who are covered under that act. Public Law , approved DISTRICT GOVERNMENT EMPLOYEES H. R. 7452: � This- measure permits the employees of the District Government to' be placed on an equal footing with employees of the Federal Government so far as the designation of holidays for pay and leave purposes is con- cerned. The Commissioners are authorized to prescribe regulations similar to those which relate to Federal employees. Public Law 85-533, approved July 18, 1958. District of Columbia-Police and Firemen- Wages H. H. 7568: � This measure amends the District of Co- lumbia Police and Firemen's Salary Act to provide that service as an inspector and a 'private in the Fire Department of the District of Columbia is to be considered as service in the same grade for the purpose of longevity � increases. Under existing law the pay of an inspector in. the Fire Department is $184 more than the pay of a private, and provides for longevity increases of $129 for each 5-year period of continuous service completed in a grade. As a result of tile narrow spread between the pay of a private and the pay of an inspector, a private who has completed one 5-year period of service entitling him to $129 in longevity pay, upon promotion to inspector, receives an increase of $55 a year but loses the credit he has toward his next 5-year longevity period. This measure permits each private pro- moted to the grade of inspector to receive the $184 increase and, in addition, he may Include his time in the grade of private in determining his longevity pay as an inspec- tor.' Public Law 85-421, approved May 19, 1958. � Juvenile Court-Additional Judge H. R. 7785: This measure provides for the appointment of an additional judge for the Juvenile Court of the District Of Columbia. The workload of the couit has increased from a total num- ber of 9,069 cases in 1951 to 17,916 cases in 1957. Up to the present, this workload has been carried on by one judge. The new judge must be a member of the bar of the District of Columbia for at least 5 years immediately preceding appointment, a resident of the District of Columbia or of the metropolitan area surrounding the Dis- trict, and must have a knowledge of social problems and procedures and an understand- ing of child psychology. The salary will be $18,000 a year. Public Law -, approved St. Thomas Literary Society - H. R. 9285: This measure amends the charter of St. Thomas' Literary Society to: Add the purpose of religion to the purposes of charity and education contained in the present law; - Remove from existing law the $500,000 lim- itation on the value of the property that the society may hold at any one time; and Remove from the charter that portion of the existing law which holds the individual corporators liable for all debts of the society. Public Law 85-541, approved July 18, 1958. Military Construction, Supplemental H. R. 9739 : This measure provides a supplemental authorization for construction and related activities for the Department of the Air Force within and without the United States, to No. 148-34 support the acceleration of certain key offen- sive and defensive weapon systems. It will stimulate business activity and employmen The need for acceleration became increas- ingly apparent during formulation of the fiscal year 1959 budget, and was clarified by the dramatic evidence of Soviet capabilities in long-range missiles and satellites. The precise subjects covered by this legis- lation are of a highly classified nature and, in the interest of national security, it is not possible to deal with all specific aspects. The overall authorization for the Air Force is $549,670,000 to support the following pro- grams: Semiautomatic ground environ- ment (SAGE) $29, 670, 000 Ballistic missile -detection sys- tem 189, 000, 000 Ballistic missiles 112, 400, 000 Alert and dispersal of strategic forces 218, 600, 000 18021 penditures' of funds raised by such loans would be authorized on an appropriation -1.--basis from year to year. Secondly the bill amends the District of Columbia Revenue Act of 1947 so that the annual payment by the Federal Government toward the expenses of the government of the District of Colum- bia would be increased by $9 million from the present authorization of $23 million, payable to the general fund. Public Law 85-451, approved June 6, 1958. Transportation of Schoolchildren H. R. 13218: - The purpose of the measure is to authorize 'the Commissioners of the District of Colum- --bia to permit District-owned vehicles to be used for the transportation of the children of District employees residing at the Chil- dren's Center, between the reservation and Laurel, Md., in order that the children may attend school. 19P58ublic Law 65-670, approved August 18, Increased the Insurance Coverage for Cabs in the District of�Columbia HR. 13531: This measure makes the following major changes in existing law with respect to in- surance on cabs in the District of Columbia: (1) The required amount of liability in- surance is increased from the present $5,000, $10,000, and $1,000 to $10,000, $20,000 and $5,000. (2) The scope of the coverage is increased to cover any use of the vehicle, by any per- son, any place within the United States, if the person required by the act to be insured, is liable under the law of the place where the cause of action arose. (3) Sections 7, 8, 11, 12, 13, 14, and 15 of the Safety Responsibility Act are made appli- cable to taxicabs to establish with certainty that taxi drivers are subject to the same pen- alties for not reporting accidents that are applicable to other drivers and to the same service of process requirements. (4) Authority is given the Public Utilities Commission to inquire into and to revoke the authority of anyone to operate as a self-in- surer if it finds such self-insurer does not have sufficient financial capacity. (5) The legislation provides that the lia- bility of the insurance carrier shall be abso- lute whenever injury or damage covered by such insurance occurs. The effect of this is to deprive the insurance company of any policy defenses. Public Law , approved ./ Education Merchant Marine Officers-Education S. 1728: This measure provides assistance to State and Territorial maritime academies or col- leges by: . 1. Authorizing the Department of Com- merce to make contracts for annual pay- ments with each academy or college for pe- riods up to 4 years, but keeping the actual appropriations on an annual basis. 2. Providing an increase in the level of assistance up to $75,000 a year, or $25,000 if the institution does not meet the require- ment regarding admission of out-of-state students. 3. Providing subsistence allowances for ca- dets at a rate not in excess of $600 per aca- demic year per student. 4. Authorizing the Secretary of Commerce to loan and keep in repair suitable vessels for training purposes. Public Law 85-672, approved August 18, 1958. Total 649, 670, 000 Public Law, 85-325, approved February 12, 1958. Additional Airport for the National Capital H. R. 12311: In 1950, Congress authorized the construc- tion of an additional public airport in or near the District of Columbia. The 1950 act authorized to be appropriated the sum of $14 million "for the purpose of carrying out the provisions of this act." The act further stated: "There are hereby authorized to be appropriated from year to year such sums as may be necessary for the proper develop- ment, improvement, maintenance," etc. Recently a site has been selected and the Government is proceeding as rapidly as pos- sible with plans for construction. However, a question has arisen whether the 04 mil- lion mentioned in the 1950 act constitutes a limitation on the total expenditures au- thorized for the airport, or merely a limita- tion on 'the amount of funds to be initially expended. This measure removes any possible doubt on the point involved and, should additional funds be needed, the request will not- be subject to a point of order. Public Law 85-511, approved July 11, 1958. Potomac River Bridge H. R. 12356: This measure establishes a more satisfac- tory location for-the bridge over the Potomac to be known as the Theodore Roosevelt Bridge. From the location authorized by the act of August 30, 1954, this bill moves the bridge upstream some 800 feet from that point contemplated in the existing statute. This six-lane low-level bridge is to be constructed from a point north of and in the vicinity of Constitution Avenue in the District of Columbia to the Virginia side of the Potomac River, and will cross the south end of Theodore Roosevelt Island, or the island known as Small Island, or portions of both. ' Public Law 85-446, approved June 4, 1958. District of Columbia Public Works HR. 12377: This measure authorizes a program of con- struction to meet capital needs of the govern- ment of the District of Columbia. The pro- gram includes projects relating to education, health, welfare, public safety, recreation and other general government activities. Two methods are provided to assist the District in financing the program. First, the bill authorizes loans to be made to the Dis- trict .by the United States Treasury in amounts up to $75 million, such loans to bear interest at rates which are equivalent to the cost of money to the Treasury. - The loans are to be repaid over a 30-year period, beginning with the second fiscal year after the loans are received by the District. Ex- Educational television S. 2119: To expedite the use of television in our public schools, colleges, and adult train- ing programs, this .measure authorizes the Commissioner of Education to make small grants-in-aid to organizations or States that Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18022 CONGRESSIONAL RECORD - SENATE August 23 qualify under the provisions of the F:ederal Communications Act. To qualify the State or organization must: 1. Pay the operation and maintenance ex- pense of these facilities. -- 2. Agree that the operation of these fa- cilities will be under the control of: (a) State agencies or officers primarily re- sponsible for State supervision of public ele- mentary and secondary schools; or (b) A nonprofit foundation, corporation, or association organized primarily to engage in, or encourage educational television broad- casting; (c) The State educational television com- mission appointed by the governor; or (d) A State college, university or teach- ers' college. 3. Agree that these facilities will lie used only for educational purposes. Grants may be made to more than one or- ganization but the total of the grants in one State cannot exceed $1 million. Grants will cover acquisition and installation of appara- tus necessary for television broadcasting, in- cluding closed circuit television, or the im- provement of television broadcasting but does not include construction or repair of structures to house the apparatus. Passed Senate May 29, 1958. Education-NACA-Graduate School H. R. 6744 : This measure increases the limitation on the amount that the National Advisory Com- mittee for Aeronautics may spend in con- tinuing the salaries of its professional em= ployees while they attend graduate schools in order to increase the value of their serv- ices to the Government. The limitation is now $100,000 a year and this act changes the dollar limitation to 2 percent of the total annual salaries of the NACA professional personnel. During the past- 8. years the NACA has granted leave for university graduate study and research in science and engineering to more than 600 different professional em- ployees. Most of the grants of leave were for cumulative periods of a few weeks each, a few were for longer periods, and in half of the cases the employees supplemented their official leave with leave without pay for 50 percent of the period involved. Eighty per- cent of the persons under the program now are granted graduate leave of a few hours a day to take specialized graduate study at universities near NACA laboratories. This practice has made it possible to increase the number of trained employees with a min- imum of interruption to research work. Public Law 85-349, approved March 17, 1958. School Construction H. R. 11378: This measure amends. Public Law 815 and Public Law 874, 81st Congress, to make per- manent the programs for financial assistance in the construction and operation of schools in areas affected by Federal activities insofar as such programs relate to children of per- sons who reside and work on Federal prop- erty, and to extend such programs until June 30, 1961, insofar as they relate to other children. Public Law 85-620, approved August 12, 1958. Federal employees Employee Training S. 385: This measure, in recognition of the Hoover recommendations as well as Congress' own interest, authorizes the training of Federal employees at pubhc or private facilities. Training is an essential element in all per- sonnel programs, so Congress, for the first time, has passed legislaton to: Provide general statutory authority for employee training required to further Federal programs; Make it possible for all agencies to use whatever facilities can best and most eco- nomically serve their training needs; Provide the President a management tool essential to efficient operation of the depart- ments and agencies; Establish a central point of responsibility for and control of employee training pro- grams; and Consolidate a variety of exiting training authorities of limited scope and applicability. The Government departments are enthu- siastic in support of the measure and have agreed that the small cost could be absorbed by each agency and department. Public Law 85-507, approved July 7, 1958. Annuity Increase . S.72: This measure provides a 10 percent in- crease to each retired employee or Member of Congress, who, on August 1, 1958, is re- ceiving or is entitled to receive an annuity based on service which terminated prior to October 1, 1956. No retiree, by reason of the 10 percent increase, may receive a total increase in excess of $500 a year. Gives a survivor a 10 percent increase, but the total increase may not exceed $250 a year. Provides a limited annuity, not to exceed $750 a year, to certain unremarried widows and widowers of employees and retired em- ployees who died prior to February 29, 1948, either while still in the service or after hav- ing retired from the service after having performed at least 10 years of creditable service. To qualify for an annuity the un- remarried widow or widower must have been married to the former employee for not less than 5 years. In addition, the widow or widower must not be entitled to any other annuity under the' Retirement Act based on the service Of the deceased employee. The amount of the annuity for a widow or wid- ower of an employee with at least 10 years' service who died prior to February 29, 1948, either in service or after retirement, will be equal to one-half of the annuity which the employee was receiving on the date of his death if retired, or if he died in service will be one-half of the rate he would have been receiving if retired for disability on such date after making full deposit to the retirement fund. The annuity will cease on the death or remarriage of the widow or widower. Fixes the effective date of the increase as August 1, 1958, or on the first day of the month in which the application for such annuity is received in the Civil Service Com- mission, whichever occurs later. Provides that the increases shall be paid out of the Civil Service Retirement and Dis- ability Fund until June 30, 1960, after which they will not be paid unless financed by appropriations. Gives a limited number of former em- ployees, who were automatically separated by reason of age prior to October 1, 1956, but who had a sufficient amount of annual leave to their credit to keep them on the rolls until that date, an election as to whether they receive the increase provided by this bill or an increase provided by the October 1, 1956 amendments. Public Law 85-465, approved June 25, 1958. Classified Employees Pay Act S.'734: This measure provides an across-the-board increase of 10 percent for all employees whose pay is fixed under the Classification Act, or is related thereto. Thus, in addi- tion to the classified employees, this meas- ure includes the Division of Medicine and Surgery in the Veterans' Administration, the Foreign Service and related funEtions of the Department of State, agencies such as the Atomic Energy Commission and the Tennes- see Valley Authority whose rates of pay are fixed by administration action, employees in the judicial branch, and legislative em- ployees. The across-the-board 10 percent applies to all grades through GS-18, including postal. inspectors, and scientific and professional positions. Provides for 292 additional supergrades and 307 additional scientific and professional positions, thus making a total of 599 new positions. Provides 10 percent for legislative and judicial employees. The 10-percent legisla- tive raise as applied to personal offices is at the discretion of the Members of Congress. Raises the ceiling of the administrative as- sistant and top committee position to $16,- 300 and provides for 1 such position in each committee and 2 at $15,700. Insurance increase deemed effective on date of enactment. Retroactive to first pay. 'period following January 1, 1958, Public Law 85-462, approved June, 20, 1958. Readjustment of Retirement Benefits S.,1732: � Authorizes equitable readjustment of the retirement benefits of certain individuals on the emergency officers' retired list. , Public Law 85-587, approved August 1, 1958. Group Life Insurance S. 2127: � . This measure amends the Federal Em- ployees' Group Life Insurance Act of 1954 to modify both the rate arid the extent of the reduction that is made in the f�ace value of a policy when the insured reaches 65. Present law provides for a monthly reduc- tion of 2 percent commencing with the first 'month after age 65 until the policy has been reduced to 25 percent of its face value. This amendment cuts the rate of reduction to 1 percent a month and, also, ceases reducing entirely when the value of the policy has been reduced to 50 percent. To meet the additional costs, the bill raises the premiums by 101/2 cents per thousand each pay period. Seven cents of this amount will be passed on to the employees and 31/2 cents to the Government. Existing law provides that an employee's insurance is continued upon retirement pro- vided the employee has 15 years or more service. This requirement is reduced to 12 years in order to extend the benefit on a more realistic basis. Passed Senate April 22, 1958. � Foreign Service Annuities S. 3379 : This measure gives Foreign Service annui- tants the same 10 percent increase in their retirement benefits which was recently given to civil service annuitants. Passed the Senate, August 11, 1958. � Foreign Department of Defense Schools S. 3460: 4 This measure withdraws positions of teachers in schools operated by the Depart- ment of Defense in foreign countries from coverage under the Classification Act, and authorizes the Secretary of Defense to pre- scribe regulations governing .such positions and fixing the rates of compensation. Passed the Senate August 4, 1958. Post Office Employees S 3564: This measure grants Civil Service Retire- ment credit for certain post office rural carrier service by employees whom the Post Office Department intended to convert to war service indefinite status pursuant to executive order but who were not converted because of administrative error. Public Law approved Federal Employees International Organizations S. 4004: - This measure encourages and authorizes details and transfers of Federal employees for service with international organizations. - Public Law , approved ( Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 L Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD � SENATE 18023 Board of Parole S. 4096: Increase salary of members of the Board of Parole to $17,500 per year. , Passed the Senate, August 11, 1958. Retirement Benefits for Reserve Components H. R. 781: Extends to certain persona in Reserve components who performed active Federal service during Korean hostilities Reserve re- tirement benefits. Public Law . , approved Chief Judge of Federal Courts�Retirement H. R. 985: This legislation is designed to relieve-chief judges of the circuit and district courts from their administrative duties upon reaching the age of 70 so they may devote their en- tire time to the lawwork of the courts in- stead of administrative details. The act also provides that a person must have served in a judicial capacity in either a circuit or district court for a year before he can become a: chief judge. The act ex! empts from the provisions of the act any district having two judges in regular active service so long as the incumbent chief judge on the date of enactment continues to hold the position. Public Law 1958. Clarification of Downgrading Provisions H. R. 1168: The purpose of the measure is to remove Inequities that have been found to exist in a limited number of instances wherein em- ployees' positions are reduced in grade through no fault of theirs, but who, because of the restrictive language ,of the law, have been denied the protection and benefits tended to be provided under� the law, Public Law , approved Coast Guard Personnel H. R. 3820: This measure confers upon the Secretary of the Treasury with respect to the settlement of claims of members of the Coast Guard the same authority which the Secretary of Defense has with respect to military and civilian personnel in that Department. Public Law , approved . Civil Service Retirement H. R. 4640: This measure amends the Civil Service Re- tirement Act by authorizing any present or former employee or member to be paid his voluntary contribution account provided ap- plication is made to the Commission before receipt of any additional annuity. A with- drawer may deposit additional amount if he becomes subject to the act after a separation from service of more than 3 calendar days. Public Law 85-661, approved August 14, 1958. Postal Employee's Pay Raise H. R. 5836: This measure grants a permanent increase of 71/2 percent for all employees under the Postal Field Service Schedule, except those in PFS-20. In addition to the permanent increase, employees in salary levels PFS-1 through PFS-43 will receive a 3-year tempo- rary cost-of-living increase of 21/2 percent, and 11/2 percent for those in PFS-7. Com- parable increases are provided for rural car- riers and fourth-class postmasters. Increases are retroactive to January 1, 1958. Public Law 85-426, approved May 27, 1958. Accumulated Annual Leave 85-593, approved August Postal Field Service Compensation Act of 1955, may receive compensation at any step of the basic salary schedule applicable to the position which does not exceed the highest previous rate of compensation received by him in the legislative branch. Public Law , approved Panama Canal Teachers H. R. 7734: Exempts certain teachers in the Canal Zone public schools from prohibitions against the holding of dual offices and the receipt of double salaries. Public Law 85-613, approved August 8, 1958. Uniformed Services Transportation Allow- ances H. R. 7902: This measure.provides authority to pay to members of the uniformed services, who could not select a home of record within the required 1-year period because of hos- pitalization and medical treatment, travel and transportation allowances. Public Law 85-576, approved July 31, 1958, Postal Employees-Longevity Step Increases H. R. 7930: - To correct certain inequities, this mess- / ure provides that all new appointments in 6, the postal field service be made at the mini- mum rate of the appropriate grade. In the case of a transfer from one position to an- other, however, the basic compensation of the employee is to be governed by regula- tions of the Civil Service Commission. )It also provides that when employees move to the executive branch from the legislative or judicial branches, their-service will be treat- ed the same as other Federal employees un- der the Civil Service Commission's regula- tions. Public Law 85-432, approved May 29, 1958. � H. R. 7710: The measure authorizes the lump-sum pay- ment of all accumulated and current accrued annual leave of deceased employees. It also provides that a legislative em- ployee who has completed 2 or more years of service as an employee and who takes employment in a position governed by the Retirement Benefits of Members of Congress H. It. 8606: � This measure amends the Civil Service Retirement Act with respect to annuities of survivors of employees who are elected Members of Congress so as to make the sur- vivor provisions applicable in the event the Member dies after completing at least 5 years of civilian service. Under previous legisla- tion the provisions became applicable only after 5 years of Member service. Public Law , approved Retired Pay H. R. 9673: � The purpose of this act is to restore the retirement pay of persons dropped from the retired rolls pursuant to section 1161 of title 10, United States Code, after December 31, 1954, and before the date of enactment of this act. Public Law , approved � Civilian Employees, Compensation Claims H. R. 10504: This bill provides a solution to a problem that exists in tonnection with adjudicating claims for death or disability benefits by employees of nonappropriated fund instru- mentalities of the Armed Forces. nisting law requires nonappropriated fund instrumentalities' to provide their em- ployees with insurance covering death and disability suffered while engaged in the per- formance of official duties. The law, how- ever, provides that these employees shall not be considered as employees of the United States for purposes of the Federal Employees Compensation . Act. Ordinarily in these circumstances, these claims would be ad- judicated by the State compensation com- missions but the State commissions have declined jurisdiction on the ground that these are Federal employees. Under this measure, the problem is solved by providing for adjudication of the claims of these employees by judicial tribunals established by the Secretary of Labor under the Longshoremen's and Harbor Workers' Compensation Act. Public Law 85-578, approved July 18, 1958. Federal Employees, Travel Costs rt. 11133: This measure provides authority to the Federal Government to pay travel and mov- ing expenses.' of prospective employees re- porting to their first duty station for em- ployment in positions determined to be in shortage categories on the same basis as payments to regular civilian employees upon transfer of official station or on original ap- pointment to an overseas post. Public Law , approved Federal Employees, Military Pay Increase H. R. 11470: This measure - increases the military pay by $576.4 million for approximately 2,592,000 persons. Included are 1,682,000 active duty personnel; 700,000 reserve personnel on in- active duty; and 210,000 retired personnel. Also included are officers of the Public Health Service and the Coast and Geodetic Survey. The raise is a minimum increase of 6 percent in basic pay for most personnel with over 2 years' service. The basic objective of this act is to estab- lish a career force for the military service. To achieve this objective, the bill makes the following changes in existing law: Establishes 2 new officer grades, 0-9 and 0-10, and 2 new enlisted grades, E-8 and E-9, and provides graduated increases whieh re- sult in the highest increases being granted to those in the upper officer and enlisted grades. Provides two new alternative proficiency pay systems designed to attract and retain highly qualified enlisted members. Establishes for the first time on a per- missive basis a special responsibility pay for a limited percentage of officers who hold critical positions: Provides an added incentive for achieve- ment by eliminating longevity increases be- yond normal promotion points. Establishes a special' longevity pay scale for officers who had 4 or more active duty� years -as an enlisted man. Sets basic pay at $1,875 a month for: (a) Chiefs of Staff of Army and Air Force; (b) Chief of Naval Operations; (c) Commandant of Marine Corps; (d) Chairman of Joint Chiefs of Staff. For retired personnel: Provides an in- crease of 6 percent for most personnel re- tired prior to effective date of this bill. Au- thorizes viee admirals and lieutenant gen- erals, now retired, to compute their pay on basis of an additional $100 a month basic pay plus the approved 6 percent increase. Authorizes 4-star generals and admirals to compute their retirement pay on an addi- tional $200 a month phis the 6 percent increase. Effective date of act: June 1, 1958. Public Law 85-422. Approved May 20, 1958. Naval and Marine Corps Transfers H. 11.11504: ...�This measure extends to Naval and Marine Corps enlisted career reservists, who complete at least 20 years of active service, the same retirement benefits for which regular en- listed personnel of these services are eligible. Public- Law 85-583, approved August 1, 1958. Naval Aviation Cadets H. R. 11626 : This measure changes service requirements so as to requite a naval aviation cadet to agree to serve as a commissioned officer for at least 3 years after completion of aviation training. Public Law 85-578, approved July 31, 1958. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 August 23 18024 Employment of Regular Navy Officers on Shore Duty H. R. 11636: This measure repeals the requirement that the determination by the Secretary of the Navy that the employment of an officer of the regular Navy on shore duty is required by the public interest be stated in the officer's order to shore duty. Public Law 85-588, approved August 1, 1958. Firearms Permits CONGRESSIONAL RECORD � SENATE The unfair trade practices it is designed to prevent are those which fall short of a Sherman Act violation, and thus do not come under the jurisdiction of the Depart- ment of Justice. To accomplish this objective, it amends the Packers and Stockyards Act and the acts administered by the Federal Trade Commis- sion to give: Department of ,Agriculture exclusive juris- diction over all livestock and poultry in in- terstate commerce, including transactions at posted yards and elsewhere. Federal Trade Commission exclusive juris- diction over retail sales of meat and non- meat products in interstate commerce; and over wholesale operations of nqnmeat prod- ucts. Joint jurisdiction (to both_ agencies for 5, 3-year period) over meats, meat food prod- ucts, livestock products in unmanufactured form, and poultry products after they have been prepared in form for distribution. Passed Senate May 15, 1958. Small Business Disaster Loans H. R. 11700: This measure authorizes the carrying of firearms or other weapons by civilian per- sonnel of the Department of Defense engaged in investigative or law-enforcement work in accordance with regulationd prescribed by the Secretary of Defense. Public Law 85-577, approved July 31, 1958. District of Columbia Police and Firemen's Salary HR. 13088: This measure provides for an overall in- crease in salaries of 13.8 percent for the members of the Metropolitan Police force and the Fire Department of the District of Co- lumbia. It provides for a starting salary of $4,800 per annum for a private; 2 annual in- creases of $200 each and 1 of $240; a biennial increase of $280 each; 3 longevity increases of $280 each at 4-year intervals; and a maxi- mum salary of $6,840 after 19 years of service. Public Law 85-584, approved August 1, 1958. District of Columbia Teachers' Salaries - H. R. 13132: This measure provides for an increase in teachers' salaries of 14 percent. Public Law , approved Longevity Credit for Service in the Panama Canal Zone Postal Service H. R. 13404: The purpose of this measure is to correct an inequity in the postal field service by granting longevity credit to employees in the postal field service in the States for service performed by them in the Panama Canal Zone postal service. Public Law , approved Antirecession�Advance Procurement House Joint Resolution 588: This measure is designed to stimulate business activity and employment by per- mitting civilian agencies of the Government to advance their procurement of supplies, materials, and equipment budgeted for the next fiscal year. This action will not increase Government purchases but will accelerate them and make funds available in 1958 for items which nor- mally would not be ordered until after the beginning of the new fiscal year on July 1 next. This resolution authorizes, during the re- mainder of fiscal year 1958, the use of up to 80 percent of the amounts included in the 1959 budget estimates for supplies and ma- terials and equipment for the departments and agencies in the executive branch, in- cluding the District of Columbia, except those for military functions of the Department of Defense and the mutual-security program. _ It is estimated that a total of $195 million will be obligated and a total of $54,300,000 will be expended during the next 90 days. Public Law 85-386, approvea April 24, 1958. Finance, commerce, industry Unfair Trade Practices in Meatpacking Industry S. 1356: This measure is designed to prevent unfair trade practices, and other lawful restraints In interstate commerce by persons engaged in wholesaling or distributing meats, meat products, and nonmeat food and nonfood products. 2920: This measure is designed to enable the Small Business Administration to make dis- aster loans to small businesses in areas which are affected by excessive, rainfall. Existing law authorizes disaster loans in areas where homes and businesses have been damaged or destroyed by floods or other natural dis- asters. The law also authorizes loans to small businesses suffering economic injury in areas where a drought is occurring. This legislation changes existing laws in two ways. The first change recognizes that existing law is too restrictive in its treat- ment of disasters resulting from drought. Present language limits eligibility to an area where a drought is occurring. This amend- ment permits disaster loans in areas affected by a drought regardless of whether the drought has been broken. .. The second change adds the situation of excessive rainfall to the disastrous conditions which may create a need for disaster loans to small businesses. Public Law 85-335, approved February 22, 1958. Fishery Extension Service S. 2973: This measure authorizes the Secretary of Interior, through the Fish and Wildlife Service, to inaugurate a fishing extension service in connection with public and non- profit _private universities or with agencies ,of the States, Territories, and possessions. Cooperative work will consist of giving in- struction to pel�sons interested in commer- cial fishing, giving information through demonstrations and publications, and aiding the printing, preparation, and distribution of information. - Passed the Senate August 4, 1958. Export Control Act�Extension S. 3093: This measure extends the Export Control Act of 1949 for a period of 2 years from its present termination date of June 30, 1958. This act, which is administered by the Secretary of Commerce by delegation from the President, authorizes regulation of exports on the basis of standards relating to national security, foreign policy, and domestic shortage's. � The-act of 1949 authorizes the President to prohibit or curtail the exportation from the United States, its TerritorieS, or possessions of any articles, materials; or supplies, in- cluding technical data. Rules and regula- tions may be issued, which may apply to financing, transporting, or other servicing of exports, to the extent necessary to achieve effective enforcement. The act directs the agency exercising the authority to seek information, and advice from executive departments and independ- ent agencies concerned in the exports; to use private competitive trade channels as far as practicable; and to consult with. all branches of the trade concerned. A fine and imprison/tent are provided for violations of the act, or of any regulations, orders, or licenses under it. Public Law 85-466, approved June 25, 1958. Export-Import Bank�Increased Lending Authority S. 3149: This measure increases the lending au- thority of the Export-Import Bank of Wash- ington from the present $5 billion to $7 bil- lion; it makes a corresponding increase in the bank's authority to borrow from the United States Treasury. The principal func- tion of the bank is to aid in financing and facilitating exports and the exchange of commodities between the United States and foreign countries. Public Law 85-424, approved May 22, 1958. Tungsten Production Extension S. 3186: This measure extends for 1 year, or until December 31, 1959, the Department of In- terior's production and purchase program of asbestos and fluorspar. Public Law 733 of the 84th Congress au- thorized the� purchase of certain materials, in specified quantities and at specified prices, to maintain the production of tung- sten, asbestos, fluorspar, and columbium- tantalum in the United States. Purchases under the act were to cease whenever specified quantities had been de- livered. The program was late in getting underway and, as a result, producers of as- bestos and fluorspar were unable to complete deliveries by December 31, 1958. This exten- sion will permit those deliveries to be made. Vetoed August 12, 1958. Opportunities for Small Business Concerns To Obtain Government Contracts S-3224: The purpose of this measure is to further amend the-Federal Property and Administra- tive Services Act of 1949; section .3709 of the Revised Statutes; the codified Armed Serv- ices Procurement Act of 1947; and the Cope- land (Anti-Kickback) Act, which contain the basic authority of law with respect to the procurement of supplies and services by the departments and agencies of the Govern- ment. The bill increases from $1,000 (in some agencies $500) to $2,500 the present open-market limitations for procurement without formal advertising by the executive, legislative, and judicial branches of the Gov- ernment. The bill would improve several aspects of procurement procedure of Government agen- cies through, the promotion of greater uni- formity and simplicity, in the interest of the Government and of business particularly of small business. Public Law ----, approved Small Business Investment Act of 1958 5.3651: The purpose of this measure is to provide assistance in an area where neither Gov- ernment nor private institutions can now offer assistance. Commercial banks are not in the business of providing equity capital to small businesses nor are they prepared, in most instances, to offer long-term credit to these businesses. And while -the Small Busi- ness Administration is authorized to make loans of a maximum 10-year duration, with a possible 10-year extension, it cannot un- der law go further toward meeting the real long-term requirements of ,kmall businesses, and it cannot provide equity capital in any case. This measure establishes in the Small Business Administration an Investment Di- vision. The Division to be separated from Small Business Administration's other op- erations, will have a three-fold function: Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD � SENATE _ First. To charter (unless charter can be obtained under State law), regulate, and ex- amine small-business investment companies. Second. To lend funds to those companies. Third. To lend funds to State and local development companies. The investment companies- will be organ- ized by 10 or more persons, under charters granted by either the States or the SBA. They must have, as capital and surplus, $300,000 before they commence business; half of that may be invested by the SBA. The SBA may also loan these companies .funds up to one-half of their capital and surplus, an as encouragement to their speedy and effective growth. The companies will then be in a positiOn to provide equity cap- ital through the purchase of convertible de- benture bonds, to small businesses, and to make 30-year loans. The small businesses receiving equity capital from investment companies will be required to purchase stock in the companies, in an amount equaling from 2 percent to 5 percent of the capital received. In this way, private ownership of the companies will be realized. ' Public Law , approved Civil ConstruCtion Acceleration Senate Concurrent Resolution 68: This resolution, introduced by 66 Senators, declared as the sense of Congress that all civil construction programs for which funds have been appropriated should be accel- erated to the greatest extent practicable. The resolution has three major objectives: 1. To reduce unemployment; 2. To place our productive facilities into more usefulness; 3. To, permit earlier completion of these projects. The resolution also expresses to the Presi- dent and the executive agencies the com- mendation of 'Congress for such action as they have taken to accelerate these programs. This resolution is one of a series of legis- lative measures that Congress enacted in an effort to stem the tide of an economic re- cession. in the field of public works, there is a large backlog of authorized projects available. At the time of enactment of this resolution, there was an unexpended balance of approximately $4 billion in appropriations that have been made for these projects. Senate adopted March 12, 1958, by vote of 93 to 1; passed House March 19, 1958. Military Construction Acceleration Senate Concurrent Resolution 69: This resolution, another in a series of anti- recession measures, declares as the sense of Congress that all military construction proj- ects needed to support the Nation's Armed Forces, and for which funds have been ap- propriated, should be accelerated to the greatest practicable extent. The acceleration of these projects has a threefold objective: 1. To reduce unemployment; 2. To strengthen our national defense pos- ture; 3. To provide fuller use of our productive facilities. The resolution also expressed to the Pres- ident thiclf the executive agencies the com- mendation of Congress for any action they have taken to accelerate these programs. Senate adopted by vote of .76 to 1 on March 14, 1958; passed House March 19, 1958. Reclamation Acceleration Senate Resolution 299: This resolution calls for accelerated Fed- eral reclamation spending by adding 20 new projects and increasing funds for 20 projects already underway. The resolution recom- mends an appropriation of $330 million for 'fiscal 1959, which is about a 50 percent In- crease over the estimates submitted by the Bureau of the Budget. The primary objective of the resolution is to alleviate acute unemployment in the West and in industrial areas where materials and equipment are manufactured. Another ob- jective is to provide Urgently needed water supplies required for the western population and economy. Acceleration will also help in permanently strengthening the Nation's economy. Senate adopted May 6, 1958. Amendment of Bankruptcy Act H. R. 13: This measure amends chapter XI of the Bankruptcy Act to permit a permission for an arrangement to be filed without being accompanied by a plan of arrangement. It also allows the court to modify a plan after it has been confirmed if it becomes un- workable. Public Law , approved � Automobile Imports H. R. 776: This measure provides that foreign auto- mobiles imported for show purposes may enter the United States duty-free if they are to be used only for show purposes. Cars or 'parts remaining longer than 6 months will be subject to duty and cars, even for show purposes, imported on a temporary basis will be required to pay duty unless the country of origin provides similar free treatment for cars made in the United States which are sent abroad for show purposes. Public Law 85-379, approved April 16, 1958. Bankruptcy Act�Amendment H. R. 982: This measure amends paragraph (6) of section 77 (c) of the Bankruptcy Act to afford a former lessor, whose properties are being operated for its account under the provisions of that paragraph, a remedy under the Interstate Commerce Act. Paragraph 6 now provides that if a lease of a line of rail- road is rejected, and the lessee, with the judge's approval, elects no longer to operate the leased line, the lessor shall begin opera- tion of the line at a time to be fixed by the judge. However, if the judge finds, after hearing, that operation by the lessor would be impracticable and contrary to the -public interest, it then becomes the lessee's duty to continue operation of the line until aban- donment is authorized by the Commission but, in such event, the operations are con- ducted by the lessee for the account of the lessor. Thus, under this measure, the Interstate Commerce Commission may fix a reasonable and equitable division of rates where a rail- road lease is rejected under the provisions of the Bankruptcy Act and one of the parties to the lease is ordered by the jUdge to oper- ate the line. Public Law 85-515, approved July 11, 1958. Chicory�Import Duty Suspension H. R. 5005: This measure suspends for a period of 2 years the duty on crude chicory, except endive, and provides for a new rate of 2 cents a pound for the same temporary period. At the end of the suspension the duty on ground or prepared chicory will be restored to 21/2 cents a pound. Pulic Law 85-378, approved April 16, 1958. 'Pistols and Revolvers H. R. 1126: � This measure adds pistols and revolvers (and parts thereof) to the list of articles in a duty-free status. Pulic Law 857410, approved May 16, 1958. Import Duties on 'Wool H. R. 2151: This measure suspends until June 30, 1960,. the import duties on coarse wool used in the manufacture of rugs and carpets. It is be- lieved this suspension will enable the domes- tic producers to obtain these wools at Com- petitive world prices. Public Law 85-418, approved May 19, 1958. 18025 Duty on Harpsichords.and Clavichords H. R. 5208: This measure provides that harpsichords and clavichords (and parts thereof) are to pay the same rates of duty applicable to pianos. Public Law 85-417, approved May 16, 1958. Estate Tax Amendment H. R. 5938: Under the 1939 Internal Revenue Code, a marital deduction is available for estate-tax purposes relating to interests in property passing to a surviving husband or wife; how- ever, where the spouse's interest in the prop- erty may terminate, or where the interest may fail to pass to the spouse, the marital deduction is available only if the termina- tion of the interest or the failure of the in- terest in property to pass to the surviving spouse may occur only within the 6 months immediately after the decedent's death, or as the result of a common disaster resulting in the death of both the husband and wife. This measure adds another exception whereby another type,of terminable interest will be eligible for marital deduction. It provides that marital deduction will be available in the case of terminable interests passing to a surviving spouse where the event which could terminate the interest becomes Impossible of occurrence within 6 months of the decedent's death. This exception will be available under the bill only in the case of decedents adjudged incompetent before April 2, 1948, the effective date of the act providing the marital deduction, who were not restored to competency before their death. This provision is effective relating to decedents dying after April 2, 1948. Public Law 85-318, approved February 11, 1958. Imports�Antidumping H. R. 600 This measure is designed to speed and tighten administrative procedures of the antidumping law protecting American pro- ducers from unfair foreign competition. The bill provides that if the Tariff Commission fails to act within 3 months after a com- plaint against- certain imports, or if the Commission's vote was evenly divided, im- port duties will be imposed. Public Law 85-630, approved August 14, 1958. Tariffs H. R. 7004: Makes handles made wholly or in chief value of wood imported for use in the manu- facture of paint rollers dutiable at the rate applicable to wooden paintbrush handles. Public Law , approved Sound Recording and Film H. R. 7454: This measure provides that sound rec- ordings, slides, and transparencies may enter the United States duty-free if imported by' societies or institutions established for re- ligious, philosophical, educational, scientific or literary purposes. Provides for a 2-year suspension of duties on exposed or developed picture film imported for the arts, science, or education through broadcasting on a nonprofit basis Over a tele- vision station owned or operated by the im- porting organization.' Public Law 85-458, approved June 13, 1958. , Religious Regalia�Importation H. R. 7516: _ Permits duty-free entry of religious in- vestments and regalia for presentation with- out charge to a church or to certain religious, educational, or charitable organizations. Public Law 85-408, approved May 16, 1958. *Small Bil'ainess�Permanent Agency H. R. 7693: This measure amends the Small Business Act of 1953, as amended and makes the fol- lowing major changes in existing law: Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 *00 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3,, 18026 CONGRESSIONAL RECORD � SENATE � August 23 It removes the time limit on the life of the Small Business Administration, and makes the agency a .permanent part of the Federal establishment; It increases the revolving fund for busi- ness loans by $295 million; It raises the maximum loan limit for busi-. ness loans from $250,000 to $350,000; It directs the Small Business Adminis- tration to assist small firms in obtaining Government research and development con- tracts; and It lowers the maximum interest rate to 51/2 percent from 6. The measure declares as the policy of Con- gress to insure that a fair proportion of the total sales of Government property be made to small-business concerns. Liberalizes the provisions calling for assistance to small businesses in the field of procurement to make them applicable on a peacetime basis. Establishes procedures for keeping small businesses informed of proposed disposals of Government property, and for arranging such disposals, wherever practicable, in a way which will enable small businesses to engage effectively in bidding for the property. It also provides that the Treasury may extend, its RFC loans up to 10 .years, and subordinates Small Business Administration claims against small businesses to State and local tax liens when the law of the State so provides. Public Law 85-536, approved July 18, 1958. Refunds�Alcohol and Tobacco Taxes H. R. 8216: Amends the Internal Revenue Code of 1954 to prevent unjust enrichment by precluding refunds of alcohol and tobacco taxes to per- sons who have not borne the ultimate bur- ' den of the tax. The new section (6423)- added by this measure provides that 1 of 2 basic conditions must be met before any refund (or other allowance of a claim) of an alcohol (except occupational taxes) or tobacco tax can be made. This provision will not apply to claims for drawbacks; for credits or refunds where a commodity is withdrawn from the market, returned to bond, or lost or de- stroyed; or for amounts claimed where a commodity has been lost where a suit has been filed before June 15, 1957. This provision is to be effective with re- spect to credits or refunds allowed or made on or after May 1, 1958. Public Law 85-323, approved February 11, 1958. Unrelated Business Taxable Income 11.111. 8268: This measure revises the definition of the term "unrelated business taxable income" contained in the 1954 code. . The general effect of this revision is to provide the same tax treatment for income distributed relat- ing to limited-partnership interests held by certain testamentary charitable trusts that is presently given income derived from divi- dends received by these trusts. This excludes from the definition of unre- lated business taxable income the income derived from a limited-partnership interest only to the extent that the income attrib- utable to such interest is actually distributed. Provision to be effective with respect to tax- able years of trusts beginning after Decem- ber 31, 1955. Public Law 85-367, approved April 7, 1958. Admissions Tax�Exemption H. H. 8794: This measure provides exemptions from the admissions tax for athletic games be- tween teams composed of students from ele- mentary or secondary schools or colleges where (1) the gross. proceeds are divided between the schools and colleges involved and hospitals for crippled children and (2) the proceeds inure to an exempt educational, charitable, or religious organization oper- ated exclusively for the purpose of aiding and advancing retarded Children. Public Law 85-380, approved April 16, 1958. Administration of Certain Collected Taxes H. R. 8865: This measure secures greater compliance with present law, on the part of employers and others_ in paying over to the Govern- ment trust fund moneys withheld from em- ployees or collected from customers. It provides that where an employer in the fu- ture is required to collect and pay over in- come or social-security taxes withheld from an employee, or where a person in the fu- ture is required to collect and pay over ex- cise taxes on facilities or services (admis- sions, club dues, communications, transpor- tation), and he fails to do so, he can by a notification from the Internal Revenue Service be instructed to collect such taxes and deposit them in a special trust account for the United States. Government. Persons failing to comply with this pro- vision (unless excepted) will be guilty of a misdemeanor and, upon conviction, will be fined not more than $5,000, or imprisoned not more than 1 year, or both. The exceptions apply to those cases where the failure was due to reasonable doubt as to the requirements under law, or where the lack Of compliance was due to factors be- yond the individual's control. Public Law 85-321, approved February 11, 1958. Restricted Stock Options ' H. R. 9035: ' This measure amends the restricted stock option provision of the Internal Revenue Code of 1954. In general, it provides sub- stantially the same treatment where one of these options is held by an employee at the time of his death and is exercised by his estate as is presently available where the op- tion is exercised prior to the employee's death. Where an option is held by an em- ployee' at the time of his death, it receives a new basis for purposes of determining gain or loss with respect to the income tax. This new basis reflects the spread between the option price and, the value of the stock at the date of death (or optional valuation date). Any amount presently taxable as ordinary income at the time of the sale of the stock by the estate or heir, however, still is to be taxable and, as under present law, a deduc- tion is to be allowed at the time of reporting of this income for any estate tax paid with respect to the decedent which is attributable to this income. The principal change made is that any appreciation in value of the stock , in which the option is granted, between the time of the granting of the option and the death of the employee (or optional valua- tion date), no longer is to result in a tax- able gain at the time of the sale of the stock by the estate or heir. ..._The changes are effective with respect to employees dying after December 31, 1956, in the case of taxable years ending after that date. Public Law 85-320, approved February 11. 1958. Footwear�Imports H: R. 9291; This measure closes certain loopholes in the tariff laws through which foreign pro- ducers have continued to avoid an import duty imposed specifically for the protection of domestic rubber-soled footwear industry. H. R. 6465 of the Eri d Congress, which be- came Public Law 479, was an effort to pre- vent avoidance of the tariff duties on cer- taM footwear products by foreign 'producers by redefining the footwear products con- cerned. Since enactment of this law, for- eign producers have devised still further Means of avoiding the, duties intended to be Imposed. This bill adds an 'alternative test to the present chief value of rubber. It adds to the chief value of the entire upper test, the test of composed in, greater area of the outer surface. Thus, if the outer surface of the upper predominantly rubber, the shoe will be classified for purpose of tariff as having an upper made of rubber. The effective date of 'the amendment is de- layed to give the President a period during which to negotiate such trade agreements as may be necessary as a result of the amend- ment. The amendment will go into force on a date to be specified by the President to the Secretary of the Treasury, and in any event not later than September 1, 1958. �Public Law 85-454, approved June 11, 1958. Alumina and Bauxite Duty H. R. 9917: This measure continues for 2 years, until July 16, 1960, the suspension of duty on alumina when imported for use in producing aluminum, crude bauxite (not refined or otherwise advanced in condition in any man- ner), and calcined bauxite. Alumina is a product used to produce aluminum, and the bulk of the alumina consumed in the United States is used for that purpose. Bauxite is a mineral used in producing alumina, abrasives, chemicals, re- fractionary and miscellaneous products, and Is vital to the domestic industries such as the aluminum, steel, and chemical indus- tries. Domestic sources of bauxite are inade- quate for our aluminum industry, and Can- ada, our principal competitor in the produc- tion of primary aluminum, allows bauxite ore and concentrates to enter duty-free. Consequently, the reimposition of a United States duty on crude and concentrated bauxite and alumina would put the United States aluminum producers at a competitive disadvantage. Public Law 85-415, approved May 16, 1958. Tariffs H. R. 9919: This measure amends the custom draw- back law by making applicable the substi- tute provision, which is now applicable to drawback on certain items, to all items. Under existing law tlie refund of duties may be. obtained in certain cases not only where the imported material is used in the manu- facture of goods exported from' the United States but also where domestic materials of the same kind and quality hive been sub- stituted for imported materials in the goods manufactured for export, The substitution privilege for drawback purposes is made ap- plicable to all classes of merchandise. Public Law 85-673, approved August 18, 1958. - Imported Articles�Processing H: R. 9923: .Provides for free entry of articles to be repaired or altered or processed including processes resulting in articles manufactured in the United States except alcoholic bev- erages. It is believed this will prove advantageous by increasing the opportunity for a pro- ducer to bring in foreign materials for em- bodiment in goods being prepared solely for export, inasmuch as it would make unneces- sary the payment of duty and later filing for drawback. Without changing the tariff po- sition, it simply eliminates the attendant tieup of money and delays involved in such procedures. Public Law 85-414, approved May 16, 1958. Finance, Commerce, Industry Public Debt Limit�Temporary Increase H. R. 9955: This measure provides for a temporary increase of $5- billion in the Federal debt limit, thus raising the ceiling from $275 billion to $280 billion from the date of en- actment to June 30, 1959. The need for the Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 - CONGRESSIONAL RECORD � SENATE temporary increase was based on (1) the fact that cash balances have been running distressingly low; (2) that there is need for more flexibility for more efficient and eco- nomical management of the debt; and (3) that even if the budget were balanced, 'there would still be large seasonable fluctutions In receipts which make operations und fthe $275 billion limitation most difficult. Public Law 85-336, approved February 26, 1958. �' Metal Scrap�Duty Suspension H. R. 10015: This measure continues for 1 year the suspension of duties on metal scrap. The bill provides, however, that primary or - vir- gin nonferrous metal in pig, ingot, or billet form, which is commercially usable in direct manufacturing without modification, is not included in the duty-free provisions. Public Law 85-453, approved June 11, 1958. Finance, Commerce, Industry Life-Insurance Tax H. R. 10021 :" � This measure provides that the 1955 for- mula for taxing income of life insurance companies shall also apply, to the taxable years beginning in 1957 until permanent legislation can be�enacteci. Under the 1955 formula, a life insurance company is taxed at regular corporate rates on a portion of its net investment income. Net investment income is the gross income from investments, less investment expenses, including such items as taxes and deprecia- tion on rented real estate. Investment in- come includes not only interest, dividends, and rents, but also royalties, income from negotiation or termination of leases and mortgages and other income from the oper- ation of a business, such as a farm acquired after foreclosure of a mortgage. Under this 'formula (1955) the net investment income Is reduced by a deduction equal to, first, 871/2 percent of the first $1 million and, sec- ond, 85 percent of any remaining balance. Enactment of this stopgap measure was re- quired, otherwise a formula adopted in 1942 - (and not in effect since 1948) would have come into operation. This 1942 formula was abandoned because it was found to be in- equitable and, in some years, yielded no rev- enue from the life insurance operations of the companies. Public Law 85-345, approved March 17, 1958. � Guar Seed�Free Duty H. R. 10112: Makes permanent the existing privilege of � free importation of guar seed. This seed, which is not produced in any quantity in the United States, is used to produce a gum which is utilized by the paper and textile industries, certain food and pharmaceutical Industries, any other industries, including uranium mining. Public Law'85-39'7, approved May 9, 1958. Newsprint Paper, H. R. 10277: Reduces from 15 to 13 inches the rriinimum width of paper in rolls which may be im- ported into the United States free of duty as standard newsprint paper. , Public Law 85-645, approved August 14, 1958. Suspension of Duty on Shoe Lathes H. R. 10792: This measure extends to August 7, 1960, the existing suspension of duties on copying lathes used to make rough or finished lasts from models capable of producing more than one size shoe from a single size model. Public Law 85-416, approved May 16, 1958. ; Defense Production Act Extension H. R. 10969: � This measure provides for extending the remaining powers of the Defense Production Act for an additional 2 years, through June 30, 1960. There are only three titles of the Defense Production Act still having the force of law. The first has to do with priorities and allo- cations. They are designed to insure prompt performance of procurement contracts let by �;:the Department of Defense and the Atomic ."Energy Commission through the use of pref- erence ratings for orders. Title III of the act provides financial vices to increase productive capacity and supply. This includes authority for the Fed- eral Reserve Board V-loan program under which private bank loans to defense con- tractors are guaranteed in whole or in part by contracting agencies. This title also con- tains the authority for loans' and procure- ment contracts for essential productive f a- 'cilities and materials, making use of a re- volving fund of $2.1 billion. Few new loans and new purchase programs are being under- taken at present, but there is considerable activity under earlier commitments. These provisions may, however, become important in.connection with defense measures result- ing from nuclear and space programs. ' Title 7, which is extended by this measure, contains a number of administrative provi- sions, the most important of which deals with the authority for voluntary agreements providing for antitrust immunity and for the use of W .0. C.'s (with compensation) and the new executive reserve, with exemp- tions from the conflict-of-interest-statutes. Public Law 85-471, approved June 28, 1958. Household Effects�Importation H. R. 11407: This measure extends to July 1, 1960, the free entry of personal 'and household effects - of any person returning to the United States under Government orders. � This dutSr-free privilege avoids undue ad- ministrative burdens upon persons evacu- ated to the United States, and is an impor- tant morale and induceinent factor in over- seas service. Public, Law 85-398, approved May 9, 1958. The Virgin Islands Corporation Act (63 Stat. 350) H. R. 12226: The Virgin Islands Corporation is a wholly, owned Government corporation, created by the 'act of June 30, 1949 (48 U. S. C. 1407), as successor to the Virgin Islands Company incorporated in 1934. The Corporation has succession until June 30, 1959, unless dis- solved sooner by act of Congress. The ma- jor revenue-producing activities during the fiscal year 1957 were the growing of sugar- cane, the manufacturing of raw sugar, the management of certain Navy property in the islands, the generation and distribution of electric power, and the operation of a loan program. In addition, the Corporation is engaged in non-revenue-producing activities to promote, through economic development, the general welfare of the inhabitants of the Virgin Islands. Failure to extend the corporate life of the Corporation would cause a relief problem in the Virgin Islands and would imperil a sub- stantial inveStment of the Federal Govern- ment. This measure extends the life of the Corporation to June 30, 1969. Public Law , approved Federal Reserve Banks H. R. 12586: This measure extends for 2 years, until June 30, 1960, the present authority of the Federal Reserve banks to purchase securities directly from the Treasury in amounts up to $5 billion outstanding at any one time. This authority supplies a two-way street in that within the same limitations, the Federal Reserve banks may sell these obligations di- rectly to the United States. Under the staute, the Board of Governors of the Federal Reserve System must include � .18027 In its annual report to Congress detailed.in- formation about thge direct purchases from or sales to the United States by Federal Re- serve' banks. . This direct purchase authority of the Fed- eral Reserve banks is important to the Treas- ury because it can be used to smooth out the effects on the money market of short. run peaks in the Government's cash receipts and disbursements. Public Law 85-476, approved June 30, 1958. Corporate and Excise Tax Extension H. R. 12695: This measure provides for 1-year exten- sion (to July 1, 1959) of the present cor- porate income-tax rate of 52 percent, and also provides for 1-year extension (to July 1, 1959) of the existing excise-tax rates on distilled spirits, beer, wine, cigarettee, pas- senger automobiles, and automobile parts and accessories. It repeals, effective August 1, 1958, the tax on the transportation of property, in- cluding the tax on coal and on the trans- portation of oil by pipeline. Public Law 85-475, approved June 30, 1958. International Development Association Study S. Res. 264 : Expresses the sense of the Senate that a prompt study should be made. Recommends that the objectives of the study should include: 1. Providing long-term loans available at a reasonable interest rate and repayable in whole or,in part in local currencies to sup- plement the International Bank. 2. Facilitating as to such loans, the use of local and other foreign currencies, includ- ing those available to the United States from sale of agricultural surpluses and other pro- grams. 3. Insuring that development funds can be made available by a process which would encourage multilateral contributions. Passed the Senate, July 23, 1958. , Tax Protocol with United Kingdom Executive A: The protocol amends the convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed -April 16, 1945, as twice previously modified, in the following particulars: 1. Royalties paid from the use of copy- rights, patents, designs, secret processes and formulas, trademarks and like property, and derived from sources within the United States by a resident of the United Kingdom, who is subject to the United Kingdom tax on such royalties, shall be exempt from United States tax if the United Kingdom resident is not engaged in business in the United States through a permanent estab- lishment, or if he is so engaged, the royalties are not directly associated with the business or carried on through the permanent estab- lishment. An identical exemption is pro- vided for a United States resident with re- spect to royalties from sources within the United Kingdom. 2. Subject to sections 901 to 905 of the Internal Revenue Code as of January 1, 1956, the United Kingdom tax will be allowed as a credit against the United States tax. If the recipient of a dividend from a United Kingdom corporation includes in his gross Income for United States income-tax pur- poses the amount of the United Kingdom tax, he will be deemed to have paid the United Kingdom tax on the dividend. Like- wise, if a recipient of a royalty includes in his gross income for United States income- tax purposes the amount of the United King- dom tax, he will be deemed to have paid the United Kingdom tax legally deduced from the royalties by or through the person who paid the tax. Ratified by the Senate, August 13, 1958. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 \ 18028 CONGRESSIONAL RECORD - SENATE August 23 Foreign Wations Glacier National Park Loop Road Senate Resolution 293: This resolution requests that the Secretary of State bring to the attention of the appro- priate officials of the Government of Canada the deep interest of the Senate in the com- pletion of the loop road linking the Glacier National Park in the United States and the Waterton Lakes National Park in Canada. Glacier National Park in the United States adjoins Waterton Lakes National Park in Canada. Construction of 3 missing links, to- taling approximately 34 miles, will provide a loop road approximately 130 miles long joining the 2 parks. Traffic :between them now moves over a single i#oad on their eastern side. Completion of the loop will join them, also, on the west. Senate adopted unanimously July 1, 1958. Study of Relations With American Republics Senate Resolution 330: Authorizes the Committee on Foreign Re- lations to make a full and complete study of United States relation with the American Republics. Passed Senate July 28, 1958. Study of Relations With American Republics Senate Resolution 330: This resolution authorizes the Committee on Foreign Relations to make a,full and com- plete study of United States relations with the American Republics. Passed the Senate July 31, 1958. Study of Problems of World Disarmament Senate Resolution 335: Authorizes the Committee on Foreign Re- lations to make a full and continuing study of the problems of world disarmament. Passed Senate July 28, 1958. Foreign Policy Study Senate Resolution 336: This resolution authorizes the Committee on Foreign Relations to make a full and' com- plete study of United States foreign policy. The committee is directed to addresS its at- tention to: (a) The concepts which govern United States foreign relations and the policies by which these concepts are pursued. (b) The present ostate of the relations of the United States with principal nations and geographic areas. ' (c) The administration and coordination of policies ,and programs by the State De- partment and other governmental agencies engaged in activities abroad. (d) The relationship of other Government policies and activities and private activity which influence United States relations with the rest of the world. Passed Senate July 31, 1958. Mutual Security Authorization Act H. R. 12181. This measure authorizes a total appro- priation of $3.03 billion to continue for another year the programs under mutual security. Of this amount, $1.6 billion is for military assistance and $810,000 for de- fense support. It incorporates the Development Loan Fund under a Board of Directors consisting of the Under Secretary of State for Eco- nomic Affairs as Chairman, the Director of the International Cooperation Administra- tion, the Chairman of the Board of Direc- tors of the Export-Import Bank, the Man- aging Director of the Fund, and the United States Executive Director of the Interna- tional Bank for Reconstruction and De- velopment. This measures also: Authorizes $20 'million for contributions to the United Nations fund for special proj- ects and technical assistance program. Prohibits, with certain exceptions, the use of either dollars or counterpart funds to retire debts of foreign governments. Covers certain employees of the mutual security program, with disability, and death benefits and coinpensation during intern- ment by an enemy, and compensation for injury,or death resulting from war-risk hazards,, Requires review of Western Hemisphere defense plans annually. 'Provides for a study, under the direction of the President, by certain Government agencies �of the relation of .the program to American private enterprise and the Amer- ican economy, to make recommendations to prevent any possible adverse effects, with special reference to areas of substantial labor surplus, and to further the role of American private enterprise in promoting oui; foreign policy. Prohibits officers and employees of United States from accepting compensation or other benefits from foreign governments; except an officer may, accept an office from a foreign government. Creates post of Under Secretary of State for Economic Affairs. Following is a complete bieakdown of the autho?ization for fiscal 1959: Public Law 85-477. Approved June 30, 1958. lb thousands of dollars] i . Administra- tion request Douse amounts Senate amendment Conference agreement ' . . Sec. 103 (a). Military assistance 1, 800, 000 1, 640, 000 } 2,400,000 { I, 605,000 Sec. 131 (5). Defense support 835, 000 775, 000 810,000 Sec. :304. 13ilateral technical cooperation 142, 000 150, 000 ,150, 000 150, 000 See. 306 (a). United Nations technical cooperation 20, 000 20,000 ' 20,000 20,00)) Sec. :306 (b). OAS technical cooperation � 1,5110 1,500 1,500 1,500 Sec. 400 (a). Special assistance 212, 000 185, 000 212,000 202, 500 Sec. 405 (c). U. N. High Commissioner for Refugees 1,200 1,200 1,200 . 1,209 Sec. 405 (d). 'Escapees L 8, 600 8, 600. 8, 600 8,0110 Sec. 406. IT. N. Children's Fund 11,000 11,000 11,000 11,000 Sec. 407. Palestine refugees,25, 000 25, 000 - 25, otx). 25, 090 Sec. 408. NATO civilian expenses Sec. 409 (c). Ocean freight 2,100 2,100 2,100 2,100 Sec. 410. Control Act eipensec 1,000 1, 000 1,000 . 1,000 Sec. 411 (b). ICA administrative expenses 33. 000 33, 000 33, 000 33, 000 Sec. 419 (a). Atoms for Peace 0.500 5,500 5,500 5,501) See. 451 (b). Contingency fund 200, 000 100.000 200,000 155,000 Total 3, 297,000 2, 958, 900 3,068, 900 � 3, 031, 400 Public Law 85-477; approved June 301958. Foreign Relations Protection of Alaskan Red Salmon Fisheries ' S. Res. 263: The Senate, by unanimous vote, adopted this resolution urging the Secretary of State and other appropriate officials of the United States to initiate negotiations immediately with the Government of Japan for the pur- -pose of further effectuating the 1952 treaty between the United States, Canada, ,and Japan, in which the Japanese Government agreed to abstain from fishing stocks of salm- on in the North. Pacific east of a line.tenta- tively set at longitude 175� W. This under- taking was accompanied by an obligation assumed by the United States and Canada to carry out necessary conservation measures 'for the salnion stocks in specified areas east of this line. Indications are that there is a depletion of Alaskan salmon resources resulting from in- tensified Japanese fishing activity upon red- salmon stocks of North American origin in the North Pacific fisheries area. Senate adopted March 6, 1958 by voice vote. International Development Association S. Res. 264: This resolution expresses the sense of the Senate that prompt study should be given by the National Advisory Council on Interna- tional Monetary and Financial Problems with respect to the establishment of an Interna- tional Development Association in coopera- tion with the International Bank for Recon- struction and Development. Passed Senate July 23, 1958. Greetings to Israel S. Res. 294: The Senate unanimously adopted Senate Resolution 294 extending the`greetings of the Senate to the State of Israel upon its 10th anniversary as an independent nation on April 24. Adopted April 23, 1958. United States-Canada Relations Senate Resolution 359: Authorizes the Senate Committee on For- eign Relations to establish a subcommittee to explore_with aPpropriate officials of the United States Government and with mem- bers of the Canadian Parliament the desir- -ability and feasibility of increased systematic discussion between legislators of the two countries on problems of common concern. Adopted in Senate, August 8, 1958. West Indies-Greetings Senate Concurrent Resolution 77: This resolution, adopted unanimously by Congress, extends the greetings of the Con- � gress of the United States to the Federal Leg- islature of the West Indies on the occasion- of its first convening. The Federation of the West Indies, made up of British possessions, came into being on January 37 1958, with the investiture of Governor General Lord Hailes. Elections for the lower house of the Federal-legislature were held on March 25, 1958, in Jamaica, Barbadoes, Trinidad and Tobago, Grenada,t Dominica, St. Vincent, St. Lucia, Antigua, Barbuda, St. Christopher, Nevis and Anguilla, and Montserrat. Members of the upper house were appointed by the Governor Gen- eral in consultation with political leaders in the islands. The Federal legislature will be officially convened for the first time at Port of Spain, Trinidad, on April 22, 1958, under the auspices of Princess Margaret of Great _ Britain. - Senate ad6pted April 16; House, April 17, 1958. Hungarian Revolt-Executions House Concurrent Resolution 343: This resolution expresses indignation at the secret trial and execution in Rumania of Imre Nagy, former Prime Minister Of Hun- gary, and his colleagues, Pal Maleter, Miklos Gimes, and Joszef Sziagyi. In the fall of 1956, Premier Nagy, led a Government which, supported by uprisings Of the Hungarian people, sought to lighten the oppressive Communist dictatorship which had been clamped upon Hungary by the Soviet Union. During the uprisings, So- viet 'military forces were sent into Budapest and other strategic locations and, as a re- sult, thousands of Hungarian patriots perished and tens of thousands were forced to flee the country. On November 8, 1956, the U. N. General Assembly, by a vote of 50 to 8, condemned the Soviet intervention in Hungary. The Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1,958 CONGRESSIONAL RECORD � SENATE 18029 Soviet military command in Hungary, Ignored the U. N. resolution, forced the Nagy government out of office and replaced it with a puppet regime under Janes Kadar. Premier Nagy sought refuge in the Yugoslav Embassy in Budapest. Lured by promises of sanctuary, Premier Nagy was seized by agents of the Kadar government, and held incommunicado in Rumania. It has now become known that Premier Nagy and his colleagues were tried and executed in secret. This resolution calls upon the President to join with other nations in expressing revul- sion of this atrocious act of political re- prisal, and again expresses the sympathy of the American people for the people of Hun- gary still under Soviet repression. Adopted by a unanimous vote of the Sen- ate June 24, 1958; adopted by House, June 19, 1958. United States-Canada Relations Senate Concurrent Resolution 108: Authorizes the Senate Committee on For- eign Relations and the House Committee on Foreign Affairs to establish a subcommittee to jointly explore with appropriate officials of .the United States Government and with members of the Canadian Parliament the desirability and feasibility of increased sys- tematic discussion between legislators of the two countries on problems of common con- cern. Adopted in Senate, August 8, 1958. United Nations Forces Senate Concurrent Resolution 109: This resolution expresses that it is the sense of the Congress that a force similar to the United Nations emergency force should be set up as a permanent arm of the United Nations, to be composed of units and volun- teers from members of the Security Council, with its equipment and expenses to be pro- vided for in the regular budget of the United Nations. Passed Senate July 23, 1958. Exploration of Outer Space House Concurrent Resolution 332: � This resolution expresses the sense of the Congress that the United States should strive for an international agreement banning the use of outer space for military purposes; that it should seek an international agree- ment providing for joint exploration of outer space and establishing a method by which disputes as to outer space will be solved by legal, peaceful methods; and that the United States should press for an interna- tional agreement for joint cooperation in the advancement of scientific developments flowing from the exploration of outer space. Passed Senate July 23, 1958. World Science-Pan Pacific Exposition S. 3680 : This measure provides for United States participation in the World Science-Pan Pa- cific Exposition to be held at Seattle, Wash., in 1961. It establishes a United States World Science-Pan Pacific Exposition Com- mission, provides for the appointment of a Commissioner and two Assistant Commis- sioners, and authorizes the necessary appro- priations for effective participation by the United States. The exposition is to commemorate the centennial of the physical fixing of the boundary line between the United States and Canada, to depict the role of science in modern civilization, and to exhibit the varied cultures of the nations of the Pacific rim. The Commission is to be composed of 16 persons: the heads of 10 departments and agencies�State, Commerce, Defense; Health, Education, and Welfare; Smithsonian Insti- tute, National Science Foundation, Atomic Energy Commission, National Advisory Com- mittee for Aeronautics, Interdepartmental Committee on Scientific Research and De- velopment, National Academy of Sciences; No. 148-35 and 3 Members of the House appointed by the Speaker and 3 Members of the Senate appointed by the President of the Senate. Passed Senate June 20, 1958. Export-Import Bank�Increased Lending Authority S. 3149: This measure increases the lending author- ity of the Export-Import Bank of Washington from the present $5 billion to $7 billion; it makes a corresponding increase in the bank's authority to borrow-from the United States Treasury. The bank has broad general powers to en- gage in banking in order to aid in financing and facilitating exports and the exchange of commodities between the United States and foreign countries. This bank is the principal instrument of the Federal Government which assists foreign trade on a business basis. Under congres- sional mandate, the bank Supplements and encourages private capital and does not com- pete with it; the bank's loans must offer rea- sonable assurance of repayment; and the bank makes no grants. The bank cooperates with private capital, sometimes through joint lending to individual ventures, some- times through guaranties of part or all of private loans, sometimes through sales of loans from its portfolio. The bank makes development loans to pri- vate companies in foreign countries, includ- ing both American and foreign firms. It makes development loans to other govern- ments or to official institutions, sometimes for the purpose of building needed basic public facilities, such as highways or port improvements, sometimes for the purpose of relending to private enterprise. Public Law 85-424, approved May 22, 1958. Olympic Winter Games S. 3262: This act authorizes the Department of Defense to support the VIII Olympic Winter Games to be held in California in February 1960 with personnel and equipment, and authorizes a Federal grant of $4 million for the construction of a sports arena for use in connection with these games. These games are to be held in Squaw Valley, and the State of California is to' bear most of the expenses of preparing for the games. The State has appropriated $7,990,000 directly for this purpose, of which $2,999,000 was appropriated to make the Olympic site a permanent State park. In addition, the State of California is spending $43 million to widen the major highways that lead to Squaw Valley to 4.-lanes. The State of Nevada has appropriated $200,000 to assist in staging the games. The competitors in the games will come from approximately 37 countries and, as host for this event, the United States has an opportunity to promote international un7 derstanding and 'to give the visitors a fa- vorable impression of this country. Public Law 85-365, approved April 3, 1958. Naval Vessels�Transfer S. 3506: This measure authorizes the. President to loan to various foreign countries not more than 43 ships from the reserve fleet. The ship types involved are destroyers, destroyer escorts, and submarines. The bill also au- thorized a 2-year extension of an existing loan of a small aircraft carrier to France. Recipients and number of ships involved are: 1. North Atlantic Treaty Organization and European area (the Federal Republic of Ger- many, Greece, Italy, Norway, Spain, and Turkey), not to exceed 19 ships. 2. Latin American area (Argentina, Brazil, Chile, Colombia, Cuba, Peru, and Uruguay), not to exceed 17 ship. 3. Far Eastern area (Japan, Taiwan, Thai- land), not to exceed 4 ships. 4. A pool of not to exceed 3 ships to be loans to friendly foreign nations in an emer- gency. The ships will be used by the recipient countries'to discharge naval responsibilities assumed by them in their areas. Use of these ships will contribute to the total, antisub- marine capability of the free world. This loan program is valuable to the United States for many reasons. It will assist in the mutual defense of the free nations. It will result in having- ships in operation at critical points in the event of an emergency. The- United States Navy reserve fleet will become more effectively dispersed; ships in opera- tion are of greater value to us than ships in the inactive reserve fleet. Another advantage is that these loans will offer the opportunity for extending United States influence throughout the world. Public Law 85-532; approved July 18, 1958, Inter-American Highway H. R. 7870: This measure authorizes an additional $10 million to complete construction of the In- ter-American Highway. The Inter-American Highway is an inter- national highway extending from the United States-Mexican border at Laredo, Tex., to the Panama Canal, about 3,200 miles in length. The portion in Mexico, about 1,627 miles, has been completed entirely by Mexico with its own funds. The remaining 1,573 miles lies in the 6 independent Republics of Guate- mala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama. Public Law 85-452, approved June 6, 1958. The Mutual Security Authorization Act of 1958 H. R. 12181: This measure authorizes a total appropria- tion of $3.03 billion to continue for another year the programs under mutual security. Of this amount, $1.6 billion is for military assistance and $810,000 for defense support. Incorporates the Development Loan Fund under a Board of Directors consisting of the Under Secretary of State for Economic Affairs as Chairman, the Director of the Interna- tional Cooperation Administration, the Chairman of the Board of Directors of the Export-Import Bank, the Managing Director of the Fund, and the United States Executive Director of the International Bank for Re- construction and Development. Puts a ceiling of 40 percent on United - States contributions to the United Nations technical assistance program and related projects. Prohibits, with certain exceptions, the use of either dollars or counterpart funds to re- tire debts of foreign governments. Covers certain employees of the mutual security program, with disability and death benefits and compensation during intern- ment by an enemy, and compensation for Injury or death resulting from war-risk hazards. Requires review of Western Hemisphere de- fense plans annually by the President and rules out internal security as a normal basis for military assistance to Latin America. Provides for a study, under the direction of the President, by certain Government agencies of the relation of the program to American private enterprise and the Ameri- can economy, to make recommendations to prevent any possible adverse effects, with special reference to areas of substantial labor surplus, and to further the role of American private enterprise in promoting our foreign poplircoyh.ibits officers and employees of the United States, performing functions under the act, from accepting compensation or other benefits from foreign governments; ex- cept an officer may accept an office from a foreign government. Creates post of Under Secretary of State for Economic Affairs. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18030 CONGRESSIONAL RECORD � SENATE August 23 Earmarks 15 percent of appropriations for United Nations Relief and Works Agency for Palestine refugees for repatriation and re- settlement. Prohibits return to the United States for commercial sale of American made firearms or ammunition furnished under any foreign assistance program. Requires publication of Itemized expendi- tures of foreign currencies by 'congressional committees. Provide new standards for obligation of defense support, bilateral technical coopera- tion, and special assistance funds for certain types of projects. Revises method of financing informational media guaranty program. Authorizes use of Public Law 480 foreign currencies for scientific purposes. Public Law 85-477. Approved June 30, 1958. AEC Exchange With Friendly Nations H. R. 12716: This measure amends the Atomic Energy Act to permit the following military coop- eration when the President determines that the actions concerned will promote and will not constitute an unreasonable risk to the common defense and security. In the field of information: Communica- tions to friendly nations or defense organi- zations of additional design information to permit essential training and planning by our allies. Communications to friendly nations or defense organizations of additional atomic weapons design information necessary to make any delivery systems manufactured by our allies fully compatible with our atomic weapons. Exchange with friendly nations of infor- mation that will improve the receiving na- tion's atomic weapon design, development, or production capability. Communications to friendly nations or de- fense-organizations of information necessary to military applications of atomic energy in addition to weapons or military reactors. In the field of materials and equipment: Transfer of special nuclear material for manufacture into atomic weapons. or for other military uses by the receiving nation.' Transfer fbr military applications of utili- zation facilities, such as nuclear propulsion and powerplants, and necessary nuclear fuels. Transfer of nonnuclear parts of atomic weapons to improve the receiving nation's state of training and operational readiness, provided the receiving nation has made sub- stantial progress in the development of atomic weapons, and other nonnuclear parts of atomic weapons system involving re- stricted data, and if such transfer will not contribute significantly to that nation's atomic weapon design, development, or fab- rication capability. Public Law 85-479; approved July 2, 1958. General Government Federal Civil Defense�Reorganization Reorganization Plan No. 1 of 1958: This reorganization plan provides new ar- rangements for the conduct of Federal de- fense mobilization and civil defense func- tions. It transfers to the President the functions vested by law in the Federal Civil Defense Administration and those so vested in the Office of Defense Mobilization. This will result in establishing a single pattern with respect to the vesting of defense mobilization and civil defense functions. Under the plan, the broad program responsibilities for coor- dinating and conducting the interrelated de- fense mobilization and civil defense functions will be vested in the President for appropriate delegation as the rapidly changing character of the nonmilitary preparedness program warrants. The plan consolidates the Office of Defense Mobilization and the Federal Civil Defense Administration to form a new Office of De- fense and Civilian Mobilization in the Exec- utive Office of the President. The membership of the Director of the Office of Defense Mobilization on the Na- tional Security..Council is transferred to the Director of the Office of Defense and Civilian Mobilization. The Civil Defense Advisory Council is transferred to the Office of Defense and Civilian Mobilization. Initially, the Office of Defense and. Civilian Mobilization will perform the civil defense and defense mobilization functions now per- formed by the Office of Defense Mobilization and the Federal Civil Defense Administra- tion. After these actions are taken, the direc- tion and coordination of the civil defense and defense mobilization activities assigned to the departments and agencies will comprise a principal remaining responsibility of the Office of Defense and Civilian Mobilization. Effective June 23, 1958. Free Citizenship Day Senate Joint Resolution 159: This resolution authorizes and requests the President of the United States to pro- claim July 4, 1958, as a day of rededication to the responsibilities of free citizenship in order that America may continue to hold high the torch of freedom gas a beacon for all freedom-loving nations. The Fourth of July commemorates ' the greatest single event in American history, the achievement of independence. No day of patriotic observance which this Nation celebrates is more replete with inspiration for opposition to the forces of oppression than the day on which the Declaration of Independence was adopted. The-Congress, in adopting this resolution, expressed the belief that this Nation, in cele- bration of the signing of the Declaration of Independence, should rededicate itself to the ideals which are so well expressed in .that- basic charter of our freedom. I Public Law 85-498; approved July 3, 1958. , Local Tax Immunity 5.6: This measure is designed to prevent the constitutional immunity of the United States from State and local taxes from being ex- tended to cover purchases made by private, independent contractors doing work for the United States, It seeks to accomplish this objective by providing for the elimination of claims of immunity from such taxes by any person on the ground that he is a contractor performing work for and, at the same time, acting as the agent of the United States or any agency or instrumentality thereof, in the procurement of tangible property of any kind for use in the performance of the contract. The basic objective of this measure is to overcome the effect of a court decision hold- ing that since a (certain) contract with the Navy Department specifically provided that the contractor was to act as purchasing agent for the Government, the real purchaser, the State was actually levying a tax on an instru- mentality of the Federal Government which it could not constitutionally do in the ab- sence of consent by the Congress. This act will prevent the immunity of the Federal Government from attaching to what is es- sentially a tax' levied on a private contractor or his supplier through the purchasing agency provision. Passed Senate by voice vote March 3, 1958. United States Marshals�Bonds S. 1438 : This measure permits the Government to purchase a single bond to cover all United States marshals by repealing the requirement that the bond, of a United States marshal be approved by -a: judge of the district court of the disrtict for which the marshal is ap- pointed and filed and recorded in the office � of the clerk. In substitution for the existing requirement that a United States marshal give a bond before entering on the duties of his office, the only requirement under this act is that the marshal be bonded. Passed Senate by voice vote March 6, 1958. Marshals' Fees S. 1439: This measure amends section 1921, title 28, United States Code, so as to change the fees to be collected by United States marshals. . Passed the Senate July 28, 1958. Patent Office S. 1864: This measure authorizes the increase in the membership of the Board of Appeals in the Patent Office from 9 to 15, and increases the compensation of the Commissioner and each Assistant Commissioner. Pas7d Senate July 23, 1958. National Air Museum S. 1985: This measure authorizes the Regents of the Smithsonian Institution to prepare. plans and specifications for the construction of a building for use by Smithsonian as� a National Air Museum. The building is to be opposite the National Gallery of Art, and of a scale and design to conform with the gallery. The building is to be large enough to show the great "firsts" of aviation and the tech- nical and scientific devices that have ad- vanced the science and art of aviation. Passed Senate June 26, 1958. Surplus Property�Advertised and Negotiated Disposal S. 2224: , This measure is designed to prescribe the situations in which the disposal of surplus Federal property, real and personal, must be accomplished by public advertising, and those M which disposals of such property may be accomplished by negotiation. Requires that surplus property be dis- posed Of by public advertising, unless dis- posal is made by abandonment, destruction, or donation; through contract realty brok- ers; on a negotiated basis in certain situa- tions; or, in the case of personal property, by sales at fixed prices. Sales may be negotiated in the following instances: Particular lots of property during a na- tional emergency; To further the public health, safety, or national security; Where public exigency will not permit delay of advertising; To prevent dislocation of the national economy from disruptive impacts of dis- posals on an industry; Where value of property is less than $1,000; Where bid prices after advertising are not reasonable or have not been independently arrived at in open competition; Where character or condition of real prop- erty or unusual circumstances make it im- practical to advertise publicly for competi- tive bids; To State and local governments at fair market value; and Where otherwise authorized by the Fed- eral Property and Administrative Services Act of 1949 or other law. Public Law 85-486; approved July 2, 1958. Government Property Leases�Options 8.2231: This measure clarifies the authority of the Administrator of General Services to review or extend the term of leases of Government property for one or more additional periods, and to permit the exercise of options to purchase pursuant to the practice common- ly followed by private business. Passed Senate by voice vote March 3, 1958. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 195-8 CONGRESSJONAL RECORD � SENATE GSA�Administrative Operations Fund S. 2283: This measure authorizes the establishment of an administrative operations fund on a pemanent basis. It permits the Adminis- trator of General Services Administration to transfer up to 5 percent of the amount in- cluded in each annual appropriation, but not -more than the amount included in the respective program appropriations, to an ad- ministrative operations fund, from which the cost of legal, financial, administrative, compliance, information and business serv- ices are to be charged. This procedure will make possible some savings to the Government and will simplify the General Services Administration's inter- nal budgeting and accounting systems. Passed Senate by voice vote March 3, 1958. Federal Agencies�Leasing ,Space S. 2533: � This measure authorizes the Administra- tor of General Services to enter into leases for periods not in excess of 10 years for the accommodation of Federal agencies in build- ings which are in existence or may be erected by lessors, within or without the District of Columbia, and to assign and re- assign space to Federal agencies. The essential purpose of the bill is to im- prove the economy and the efficiency of GSA's space,-leasing program by authorizing the Administrator to use leasing techniques similar to those employed by private enter- prise- in acquiring space by lease to meet its needs. Public Law 85-493; approved July 2, 1958. Surplus Property�Disposals S. 2752: This,measure is designed to clarify, modi- fy, and improve certain phases of the Federal Property and Administrative Services Act and procedures relative to the disposal of sur- plus property by' executiveagencies. To ac- complish this, it modifies the requirement in section 207 of the act that executive agencies, at the beginning of negotiations, seek the advice of the Attorney General as to whether' a. proposed surplus- property disposal would tend to create or maintain a situation incon- sistent with the- antitrust laws. It would require, instead: that notification to the At- torney General be made whenever such dis- posal is contemplated by any executive agency, thus leaving it to the agency to de- termine the appropriate time for submission. It also requires that when such notice is, transmitted to the Attorney General by any executive agency, other than the General Services Administration, a copy of the noti- fication must be transmitted simultaneously to the Administrator of General Services. It exempts from the requirements of section 207 proposed disposals of any surplus prop- erty if the aggregate amount of the original acquisition cost to the Government, plus cap- ital expenditures is less than $1 million. It also permits an exemption of proposed dis- posal of salvage and scrap where the acqui- sition cost is less than $3 million. Public Law 85 ; approved Department of State S. 3112: This measure establishes in the Depart- ment of State a new position. of Assistant for International Cultural Relations. The As- sistant, who is to be appointed by the Presi- dent and confirmed by the Senate, will have the duty to coordinate the international ex- change programs of the Department under the Surplus Property Act of 1944, the United States Information and Educational Ex- change Act of 1948, the Mutual Security Act of 1954, the International Cultural Exchange .and Trade Fair Participation Act of 1956 and other legislation relating to exchange of per- sons, in order to assure- joint policy and planning, equitable budgeting and acirnin- istrative cooperation. Passed- Senate July 28; 1958. Federal Building Sites�Leases S. 3142: This measure extends the authority of the Administrator of General Services to lease out Federal building sites until needed for construction purposes. Authorizes the General Services Adminis- tration to negotiate leases with former owners or tenants in possession of property immediately after the Government acquired the property. It also permits the GSA to deposit the rent received from lessors into a single building management fund instead of being held in separate special accounts. It authorizes the General Services Admin- istration to use rental funds for demolition and improvement of property. Passed Senate June 23, 1958. National Cultural Center S. 3335 : This measure establishes in the Smith- sonian Institution a Board of Trustees of the National Cultural Center, composed of 15 Federal officials, members ex officio, and 15 general trustees appointed by the Presi- dent, to arrange for the construction of the National Cultural Center, with funds raised by voluntary contributions. . The Cultural Center is to be located on a site in the District of Columbia bounded by- Rock Creek Parkway, New Hampshire Avenue, the proposed Inner Loop Freeway, and the approaches to the authorized Theo- dore Roosevelt Bridge. The Board is to maintain and administer the National Center, present programs of the performing arts, lectures and other pro- grams, and provide facilities for other civic activities. The measure also establishes an Adviaory Committee on the Arts, designated by the President, to advise and consult with the Board and make recommendations regarding cultural activities to be carried on in the center. Passed Senate June 20, 1958. Immigration . S. 3653 : This. measure authorizes the acquisition of sites and the construction of buildings for a training school for the Immigration and Naturalization Service. Passed Senate July 28, 1958. Property Payments in Lieu of Taxes 8.3677: This measure extends for 2 years, from December 31, 1958, the period for which pay- ments in lieu of taxes may be made to State and local taxing authorities by the Federal Government relating to certain real prop- erty on which payments were authorized by Public Law 388, 84th Congress. Public Law 388 was designed to furnish temporary relief for local taxing authorities under an undue and unexpected burden as the result of transfer of taxable real property from the Reconstruction Finance Corpora- tion or its subsidiaries to another Federal agency or department, and which transfer operated-to take the property out of taxation. It authorized payments in lieu of taxes only if the property was transferred by RFC, or one of its subsidiaries, to another Federal agency or department on or after January 1, 1946, and only if title to this property had. been held continuously by the United States since the transfer. The Government depart- ment having custody or control of real prop- erty meeting- these conditions is required to pay the local taxing authority for the period commencing- on January. 1, 1955', and termi- nating on December 31, 1958-; an amount equal to the real property tax. This nieasure extends this payment period to December 31, 1960. Public Law 85-579; approved August 1, 1958. 18031 Functions of the Surgeon General S. 3727: The purpose of this legislation has but a single objective, namely, to enable the Sur- geon General more effectively to promote the cause of peace through promoting the cause of health throughout the world. This is ac- complished by amending the Public Health Service Act so- as to clarify the functions and responsibilities of the Surgeon General with respect to international health activi- ties and to encourage and facilitate interna- tional cooperation in the conquest of dis- ease and the promotion of health. Passed Senate August 14, 1958. Penitentiary Imprisonment S. 3874: This measure amends section' 4083, title 18, United States Code, and provides that persons ,sentenced for more than 1 year may be confined in any United States pen- itentiary but-that a sentence for an offense punishable by imprisonment for 1 year or less shall not be served in a penitentiary without the defendant's consent. Passed Senate July 28, 1958, Taxation of Costs S. 3875: This measure provides for the allowance of costs for witnesses and fees -paid to the clerk to the prevailing party in suits against the United States or against Internal Rev- enue officials if the defendant puts in issue plaintiff's right to recover. Passed Senate July 28, 1958. National Training School for Boys S. 3876: This measure authorizes the acquisition of land and the construction of buildings for the National Training School for Boys at a site to be selected by the Attorney General, and authorizes for sale the Training School real estate in the District of Columbia. Passed Senate July 28, 1958. Government Printing Office S. 4010: Authorizes the Public Printer to designate deputy disbursing officers to act for a limited period in the case of death, resignation or separation- of the disbursing officer. Passed Senate August August 4, 1958. District Courts�Guam H. R. 4215: This measure increases the salary of the Guam United States District Court judge from $19,000 to $22,500 a year. It lengthens the Guam District Court judgeship of the District Courts of Puerto Rico, the Canal Zone and the Virgin Islands. Provides the District Court of Guam with jurisdiction of a district court of the -United States in all causes arising under Federal laws regardless of the amount in- volved. Public Law 85-444; approved June 4, 1958. Scientific Research S. 4039: Authorizes Government departments and agencies which make contracts for basic scientific research with nonprofit universities or research organizations, to make grants- to those institutions for the support of basic research and to vest in those institutions title to equipment provided with grant or contract funds. Passed Senate August 4, 1968. Office of Civil and Defense Mobilization S. 4059: Changes mime of "Office of Defense and Civilian Mobilization" to "Office of Civil and Defense Mobilization" so' as to- avoid confu- sion of this .organization with the Depart- ment of Defense. Public- Law ----, approved Administrative Office of the Courts S: 4142: This measure- changes the title of the Declassified and Approved For Release @ 50-Yr 2014/05/01 :.CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18032 CONGRESSIONAL RECORD � SENATE August 23 "Assistant Director" of the Administrative Office of the United States Courts-to "Deputy Director" and creates two positions in grade 18 under the Classification Act. Passed Senate August 4, 1958. Withholding of Information H. R. 2767: This measure amends section 22, title 5, United States Code, which authorizes the head of an executive department to prescribe regulations for, inter alia, the custody, use and preservation of the records and papers of his department to indicate the congres- sional intent that the section does not au- thorize withholding information from the public or limiting the availability of records to the public. Public Law 85-619; approved August 12, 1958. Additional Peremptory Challenges in Civil Cases H. B. 3368: The present law now permits three per- emptory challenges in civil cases to each party, and states that for the purpose of making challenges several plaintiffs or sev- eral defendants shall be considered as a single party. Vowever, the law permits an excep- tion to this general rule, where there is more than one defendant. In such an instance the courts may allow the defendants addi- tional peremptory challenges and permit them to be exercised separately or jointly. It is the intention of this legislation to ex- tend the same privilege to multiple plaintiffs. Public Law , approved Alaska Public Lands H. R. 4635: This measure provides for settlement and entry of public lands in Alaska containing coal, oil, or gas by permitting entry on such lands for homesites, headquarters sites, or trade and manufacturing sites under the act of May 14, 1958, or for purposes of a soldier's additional homestead entry. Public Law �, approved Pearl Harbor Memorial H. R. 5809: This measure authorizes the Secretary of the Navy to cooperate with the Pacific War Memorial Commission of Hawaii, in the de- velopment of a design for a proposed U. S. S. Arizona' memorial and museum at Pearl Har- bor, T. H. The hulk of the U. S. S. Arizona lies in Pearl Harbor, where the vessel was sunk dur- ing the Japanese attack on December 7; 1941. The memorial and museum is proposed as an appropriate tribute to the 1,102 American servicemen who died during the attack on Pearl Harbor. Public Law 85-344, approved March 15, 1958. � Hawaiian Organic Act H. R. 5865 : � ' The purpose of H. R. 5865 is to amend sec- tion 80 of the Hawaiian Organic Act (48 U. S. C., sec. 546) with reference to election of members of the board of trustees of the Territorial employees' retirement system. Under an act of the Territorial legislature, 3 of the 7 members are elected by members of the system. The Territorial attorney gen- eral, however, has advised that the election of these members is in conflict with provi- sions of the organic act which require the Governor to nominate and appoint, with the consent of the Territorial senate, members of any board of a public character created by law. H. R. 5865 ratifies the existing Territorial statute and confirms the service on the board of present employee members. Public Law , approved Pioneer Airplane Events�Commemorate H. R. 6078 : This measure authorizes, at Fort Myer, Va., the erection of a marker to commemorate the first flight of an airplane atan Army installa- tion a,nd.a bronze plaque to mark the site of the first crash of an airplane on an Army installation. September 3, 1958, marks the 50th anni- versary of the first airplane flight on an Army installation. The flight,- by Orville Wright, was the first in a series of tests to be made before Government acceptance of the airplane. The flight lasted for 1 minute and 11 seconds. The first crash of an aircraft on an Army installation occurred on September 17, 1908. Lt, Thomas E. Selfridge accom- panied Wright on a flight to comply with specifications requiring that the plane be air- borne for a specified period with a pilot and one passenger aboard. The plane crashed and Lieutenant Selfridge died as a result of injuries. Public Law 85-330, approved February 15. 1958. Abbreviated Records in Reviewing Adminis- trative Agency Proceedings H. R. 6788: The purpose of the legislation is to save time and expense by permitting the several courts of appeals to adopt rules authorizing the abbreviation of the transcript and other parts of the record made before Federal ad- ministrative agencies when the 'orders of those agencies are to be reviewed by the courts of appeals. If review proceedings have been instituted in two or mote courts with respect to the same order, the bill re- quires the Federal administrative agency in- volved to file the record in that court in which the proceeding was first instituted, but in the interest of, justice and for the convenience of the parties, such court may thereafter transfer the proceedings to an- other court of appeals. Public Law approved Lis Pendens in Federal Courts H. R. 7306: This act requires that an action with, re- spect to real property pending before a United States district , court, must be re- corded, if State law so provides, in order to be considered constructive notice that the action is pending. Public Law , approved , Probation H. R. 7260 : This measure corrects existing law which limits courts in convictions on a one count indictment to either the imposition of a jail sentence or placement ;on probation.. The measure Would permit confinement in a jail type or treatment institution for a period not exceeding 6 months in connection with the grant of probation. Public Law , approved Meetings of Hawaiian Legislature H. R. 7564: Authorizes the Legislature of the Territory of Hawaii to meet annually in regular ses- sion. Sessions in' odd years, designated as a regular session are limited to 60 days, and sessions in even years designated budget sessions are limited to 30 days. The Gov- ernor may extend any session 30 days. The measure also authorizes special sessions. Public Law. , approved The Court of Customs and Patent Appeals H. R. 7866: The purpose of the legislation is to amend title 28 of the United States Code so as to make the United States Court of Customs and Patent Appeals to be a court estab- lished under article III of the Constitution of the United States. Public Law�, approved Alaska Statehood H. B. 7999: This measure provides for the admission of Alaska into the Union without further congressional action, as a full and equal sovereign State; and for-confirmation of the constitution and admission of the State on completion of a State election and ministe- rial actions necessary to the transition. Property grant provisions: Allows the State to select within 25 years a total of 103,350,000 acres from Federal lands in Alaska, land area Of Alaska is 365.6 million acres; 400,000 acres of this total amount may be selected from national forests to be used for community expansion and recrea- tion sites. After transfer of the total se- lected amount, the United States will still own about 70 percent of the land in Alaska as opposed to the present figure of 98 per- cent. rin ancial provisions: The new State is granted '70 percent of the net proceeds from sales of fur seals and sea-otter skins from the Pribilof Islands, which will be approxi- mately $1 million a year. Provisions of Public Law 88 of the 85th Congress is extended 'to the State and, un- der this act, the Territory will receive a total of 90 percent of the profits from Gov- ernment coal mines and 90 percent of the profits from operations under the Mineral Leasing Act. Thirty-seven and one-half percent of the proceeds from mineral oper- ations is earmarked for roads and educa- tional purposes, and the remainder will be available for distribution as the legislature directs. Grants to the State 5 percent of the net proceeds from sales of public lands in Alaska to be used for public-school purposes: Grants to the State 371/2 percent of the proceeds from its national forests, which is 121/2 percent more than is received by other, States. Payment of the additional 121/2 per- cent continues only until otherwise directed by Congress and ceases in 10 years without further congressional action. Title to the submerged lands is vested in the new State. The bill also authorizes a Federal appro- priation of 815 million to be used for land surveys. Special nation-defense withdrawals: Pro- vides an area in northern and western Alaska from which the President may make future withdrawals of land for national defense pur- poses. The area subject to withdrawals con- tains about 276,000 square miles and 24,000 people. The population includes 15,000 In- dians or other natives, and 5,000 persons in military service or in the civilian employ of the Department of Defense. In general, the withdrawal provisions allow the Presi- dent to place any part or parts of the with- drawable area under exclusive Federal juris- diction and control if and when it considers it necessary in the interest of national de- fense. Judicial system: The present Territorial court, together with its officers, will con- tinue its functions relating to Federal mat- ters until 3 years after admission of the State or until the President proclaims that the new Federal court is ready to operate, whichever is sooner. The Territorial court, together with its officers, will continue its consideration of State matters until the Governor of Alaska certifies to the President that the State courts are ready to operate. Public Law 85-508, approved July 7, 1958.. Income Tax Offenses . H. R. 8252: _ This measure permits persons charged with certain offenses against the income tax laws to elect to be tried in the judicial district in which he was residing at the time the al- leged offense was committed if prosecution is begun in a judicial district other than the one in-which he resides. Public Law 85-595, approved August 6, 1958. Hawaii H. R. 8478: Authorizes the Hawaiian Homes Commis- sion to grant licenses for lots under its jurls- Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 . CONGRESSIONAL RECORD-- SENATE diction on which United States post ()Meg and other public improvements may be oper- ated. Public Law �, approved General Government�Franklin D. Roosevelt Library H. R. 8795: This measure permits the Administrator of General Services to maintain and operate the Franklin D. Roosevelt Library under the terms of the General Presidential Libraries Act.' It would also accomplish the following: Abolish the Board of Trustees of the Franklin D. Roosevelt Library. Establish the Franklin D. Roosevelt Library fund as a separate account within the Na- tional Archives trust fund. Eliminate the present limitations on the purposes for which the Franklin D. Roose- velt trust funds may be used. Eliminate the 25-cent ceiling on admission fees. Give statutory recognition to the validity of restrictions placed by donors on the use of papers accepted for deposit. Public Law 85-341, approved March 15, 1958. Trial and Appeal Trademark Board H. R. 8826: This measure abolishes in contested trade- mark application cases decisions by ex- aminers with the right of appeal to the Commissioner, and substitutes therefor a single decision by a 3 man panel selected from the members of the Trademark Trial and Appeal Board. The same Board also hears appeals from an examiner's refusal to register. Members of the Board are the Commissioner, the Assistant Commissioners, and Patent Office employees selected by the Commissioner from those whose qualifica- tions have been approved by the Civil Serv- ice Commission as qualified for appointment as examiner in charge of interferences. Public Law 85-609, approved August 8, 1958. ) Hawaiian Land Laws H. R. 9445: The principal purpose of H. R. 9445 is to amend the Hawaiian Organic Act (48 U. S. C. 665) to permit leasing of public lands of Hawaii on a 65-year basis. At present leases may not exceed 15 years for agricultural purposes and 21 years for general purposes. Public Law �, approved Sales and Exchanges of Public Lands of the Territory of Hawaii H. H. 9500: The purpose of H. R. 9500 is to assist per- sons who suffered losses in the tidal wave which swept the coast of Hawaii in 1957 by providing -for the sale of public lands to them and the exchange of such lands for damaged lands. The measure requires that proposed sales and exchanges be approved by the Governor of the Territory and at least two-thirds of its board of public lands, -that sales be at fair market value, and that the value of the private lands taken in exchange, reckoned as of immediately prior to the tidal wave and without regard to improvements, be equal to that of the public lands given in exchange. _Public Law , approved Hawaii-- H. R. 9502: Permits certain exchanges of public lands in the Territory of Hawaii where the area does not exceed 40 acres and the value is not in excess of $15,000. Public Law --, approved Reconveying the Lands Acquired for Burke Airport H. R. 10045: The principal purpose of R. R. 10045 is to prescribe a special procedure for disposing of federally owned real property at Burke, Va. This land was acquired under the act of September 7, 1950, to be used for con- structing a second airport for the Washing- ton area. As a result of the recent selection of a site at Chantilly, Va., for the airport, the Burke property is no longer needed and has been declared surplus to Federal needs by the General Services Administration, the. governmental agency for surplus property sales. Section (a) of the bill would require that during the 90 days immediately following enactment, no Burke property could be dis- posed of except pursuant to section 13 (h) of the Surplus Property Act of 1944 (50 App. U. S. C. 1622 (h) ) or section 203 (k) of the Federal Property and Administrative Services Act of 1949 (40 U. S. C. 484 (k) ). Public Law . approved Judicial Conference H. R. 10154: This measure authorizes the Judicial Con- ference to study the operation and effect of the general rules of practice and pro- cedure now or hereafter in use in the United States Federal courts and �to recommend such changes as the Conference believes de- sirable to the Supreme Court for consideta- tion. This legislation does not change the re- sponsibility of the Supreme Court for pre- scribing rules of practice and procedure in Federal courts nor the responsibility for submitting some of them'for congressional review. It does, however, by statute, permit the Supreme Court to secure the advice and assistance of an existing group which is uniquely qualified to give advice on these matters. The Judicial Conference is a permanent organization which brings together in one body representatives of the Federal judi- ciary from all of the geographical areas of the United States. The Conference is under the chairmanship of the Chief Justice of the United States, and is composed of the chief judge of each circuit court of appeals, a district judge from each of the 11 circuits, and the chief judge of the Court of Clain-is. Public Law 85-513, approved July 11, 1958. Hawaiian Indebtedness H. R. 11954: This measure gives additional flexibility to the management of finances by the Ter- ritory of Hawaii by excluding from the cotn- putation of indebtedness which the Ter- ritory may incur bonds issued to finance veterans' homes and farm mortgages, and by deleting the limitation on the amount of indebtedneses which the Territory and its subdivisions may incur in i year. , Public Law approved Revised Organic Act of the Virgin Islands H. R. 12303: The purpose of H. R. 12303 is to amend the Revised Organic Act of the Virgin Is- lands (68 Stat. 497) in many respects in order to remove ambiguitia and imperfec- tions which now exist in the statute. Public Law , approved � Guam H. R. 12569: This measure seeks to clarify the Organic Act of Guam with respect to income taxes and authorizes suits against the government of Guam to recover taxes erroneously or illegally collected or assessed. Public Law �, approved � National Aeronautics and Space Act of 1958 H. R. 12575: This measure provides that all aeronautical and space activities of the United States be devoted to peaceful purposes for the benefit of all mankind and be conducted to con- tribute materially to the following objec- tives: To expand human knowledge in. the phe- nomena of atmosphere and space:, 18033 To improve the Usefulness, performance, safety, and efficiency of aircraft; To develop and operate vehicles capable of carrying instruments, equipment, and liv- ing organisms through space; To establish long-range studies of poten- tial benefits to be gained from using aero- nautical and space activities for peaceful and scientific purposes; To preserve the role of the United States as a leader in aeronautical and space science ' and technology; ' To make available discoveries of military value to defense agencies; To provide for cooperation with other na- tions in this field; To effectively utilize United States scien- tific and engineering resources. The act imposes upon the President the duty to develop after survey a comprehensive program of aeronautical and space activities to be conducted by agencies of the United States, to designate responsibility for major activities, to provide for effective cooperation between those agencies having responsibility for space activities and to resolve differences arising among Government agencies with re- spect to such activities. To advise the President, the act establishes the National Aeronautics and Space Council, composed of the President, the Secretary of State, the Secretary of Defense, the Admin- istrator of the National Aeronautics and Space Administraion, the Chairman of the Atomic Energy Commission, one additional Government member appointed by the Pres- ident and not more than 3 non-Government members appointed by the President. The act creates the National Aeronautics and Space Administration to be headed by an Administrator and a Deputy Administra- tor to be appointed from civilian life by the President. Responsibility for space activities are di- vided between the Department of Defense and the new Space 'Administration. Space activities peculiar to or primarily associated With the development of weapons systems, military operations, or the defense of the United States are made the responsibility of the Department of Defense. All other space activities are made the responsibility of the Space Administration. Public Law 86-568, approved July 29, 1958. Federal Sentencing House Joint Resolution 424: This measure authorizes the Judicial Con- ference to establish institutes and joint councils on sentencing to study, discuss, and formulate the objectives, policies, standards, and criteria for sentencing. It also authorizes the coutt when it im- poses a sentence exceeding 1 year either to designate a minimum term at the expiration of which the prisoner shall become eligible for parole, which shall not be more than one- third of the maximum sentence imposed, or to fix a maximum sentence and specify that the prisoner may -become eligible for parole at such time as the Board of Parole deter- mines. The measure also authorizes the court, when it desires more information, to com- mit the prisoner to custody of the Attorney General for the maximum sentence pre- scribed by law for study by the Director of the Bureau of Prisons. The Director is re- quired to report his study and recomsnenda- dations within 3 months, or within 6 months if the court grants additional study time. On receipt of the report the court may place the prisoner on probation, affirm the original sentence or reduce the sentence. The measure also permits the court to treat defendants between the ages of 22 and 26 under the Federal Youth Corrections Act if It believes the, defendant will benefit from such treatment. Public Law �, approved Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18034 CONGRESSIONAL RECORD ---,SENATE August 23 Code of Ethics � House Concurrent Resolution 175: This resolution establishes basic standards of conduct as a guide to all privileged to be a part of the Government service; however, it does not create new law, impose penalties, identify types of crime, nor establish legal restraints. It does, however, etch out a charter of conduct against which those in public service may measure their own actions. It provides that any person in Government service should: Place loyalty to the highest moral prin- ciples and to country, above loyalty to per- sons, party, or Government department; Uphold the Constitution, laws, and legal regulations of the United States and never be a party to their evasion; Give a full day's labor for a full day's pay; Seek to find and employ more efficient and economical means of getting tasks accom- plished; Never discriminate unfairly by dispensing special favors or privileges to anyone; and never accept favors or benefits which might be construed as influence; Make no private promises binding upon the duties of office; Engage in no business with the Govern- ment, either directly or indirectly, inconsist- ent with his governmental duties; Never use confidential information as a means for making private profit; Expose corruption; and Uphold these principles, ever conscious that public office is a public trust. Passed the Senate July 11, 1958. Health, Dental Health Senate Joint Resolution 178: � Authorizes the President to proclaim Feb- rua,ry 8-14, 1959, as National Children's Dental Health Week to stress the necessity of a continuous program for the protection and development of. the dental health of the Nation's children. Public Law approved � International Health and Medical Research " Year Senate Resolution 361 and Senate Concur- -rent Resolution 99: This resolution requests the President to invite the other nations of the world, through the World Health Organization to designate representatives to meet and discuss the feas- ibility of designating an International Health and Medical Research Year, or of other methods of developing intensive inter- national cooperation in the field of health to cope with major killing and crippling diseases. Passed the Senate August 11, 1958. Increase in Funds for Construction of Hospital Facilities S. 3259: The measure amends the act to provide for the establishment of a modern, adequate, and efficient hospital center in the District of Columbia, so as to increase the authoriza- tion for funds to be granted for the con- struction of hospital facilities in the District of Columbia by $1,020,000. Previous author- ization totals $39,710,000. Total authoriza- tion for this purpose under this measure would be $40,730,000. Public Law ',approved Hospital Survey and Construction H.R. 12628: . This measure extends the Hospital Survey and Construction Act for an additional pe- riod of 3 years. Public Law 85-664, approved August 14, 1958. Hospital Construction Loans H. R. 12694: - This measure authorizes,loans for the con- struction of hospitals and other facilities under the Public Health 'Services Act. Public Law 85-589, approved August 1, 1958. Housing � Housing Emergency�Antirecession S. 3418: This measure is designed to encourage and expedite the construction and financing of a substantial number of new housing units. Primary emphasis has been placed on ex- panding and amending existing programs which can best provide immediate economic relief by: 1. Reducing the minimum downpayment requirements under the FHA sales-type housing program from 3 percent of the first -$10,000 to 3 percent of the first $13,500. 2. Increasing by $500,000 the authorization for funds subject to Presidential allocation for purchasing home mortgages. 3. Increasing from $450 million to $550 million FNMA funds for purchasing mort- gages on military housing. 4. Creating a new FNMA special assistance revolving fund of $1 billion for purchasing FHA and GI mortgage loans up to $13,500. 5. Increasing to $13,500 (from 410,000) the maximum GI mortgages the Government could purchase directly. 6. Extending the VA direct loan program and authorizing $150 million for each of the next 2 fiscal years. 7. Extending the loan guaranty program for 2 years and authorizing an interest rate ceiling of 4% percent. 8: Authorizing an interest-rate ceiling of 41/a percent for military housing mortgages. 9. Eliminating regulation of discounts charged by lenders to increase the yield on FHA insured and VA guaranteed loans. This measure was considered as the first antirecession measure to be passed by the Senate. Public Law 85-364, approved April 1, 1958. FHA MOrtgage Insurance�Increase Senate Joint Resolution 171: This measure increass the mortgage in- surance authority of FHA by $4 billion to a grand total of $29.8 billion. These addi- tional funds will replenish the authority of FHA to insure mortgages and continue the 24-year history of helping millions of fam- ilies buy homes. Public Law 85-442, approved June 4, 1958. Immigration and Naturalization - Immigration S.3942: Makes available 1,500 special nonquOta immigrant visas for issuance to certain aliens in the Azores who are distressed as a result of a natural-calamity. Passed Senate August 6, 1958. Immigration Bonds�Cancellation H. R. 8439: This measure permits the Attorney Gen- eral, on receiving a properly executed appli- cation, to cancel departure bonds posted under the Immigration Act of 1924 or the Immigration and Nationality Act, on behalf of any refugee who entered the United States as a nonimmigrant after May 6, 1945 but prior to July 1, 1953, and has since had his status adjusted to that of an alien admitted for permanent residence under any public or private law. - In those cases where the individual is a refugee' and qualifies under the bill but the proceeds of the bond have been paid into the Treasury, the person, organization, or corporation entitled to the refund will be paid the refund. Public Law 85-531, approved July 18, 1958. Naturalization H. R. 13378: This measure provides a means for the expeditious naturalization of alien spouses and adopted children of United States citi- zens who are missionaries or performing religious duties, and are stationed abroad in pursuance of their religious calling. Public Law ,approved Immigration H. R. 13451: This measure permits the Attorney Gen- eral in worthy cases to adjust the status of certain aliens lawfully admitted for perma- nent residence without the necessity of re- qUiring the alien to go to Canada and reenter. The act also permits the Attorney General to admit aliens whose services are urgently needed in the United States be- cause of their ability and qualifications if a- petition has been approved prior to July 1, 1958. Public Law ,approved War Claims S. 163: This measure extends the time for filing claims under the War Claims Act of 1948 for a period of 1 year from the date of enact- ment. Passed Senate, July 29, 1958. Czechoslovakian Claims Fund S. 3557: � This measure provides a Czechoslovakian Claims Fund from which United States citi- zens may be compensated for property na- tionalized or otherwise taken subsequent to World War II by the Government of Czecho- slovakia. Funds for these claims will be derived from the disposal of certain Czech assets held by the United States Government. Pre- liminary estimates indicate there are about 1,000 claims to be met. Claimants will prob- ably receive, on the average, a compensation equal to from 30 to 50 percent of their losses. Public Law 85-604, approved August- 8, 1958. General Grant National Memorial H. R. 6274: Authorizes the Secretary of Interior to ac- quire title to Grant's Tomb in New York and maintain it as the General Grant Na- tional Memorial. Public Law 85-659, approved August 14, 1958. Oregon-Washington 'Compact ' H. R. 7153: Approves compact between the States of Oregon and Washington resolving boundary. dispute. Public Law 85-575, approved July 31, 1958. Outer Space Investigation Senate Resolution 256: The Senate, on February 6, adopted with one dissenting vote a resolution establishing a Special Committee on Astronautics and Space Exploration. The Senate, in almost unanimity, authorized the committee to conduct a thorough and complete study and investigation into all the aspects and prob- lems relating to the exploration of outer space; the control, development and use of astronautical resources, personnel, equip- ment, and facilities. The committee, consisting of thirteen members, seven from the majority and six from the minority Members of the Senate, appointed by the Vice President from the Committees on Appropriations, Foreign Rela- tions, Armed Services, Interstate and Foreign Commerce, Government Operations and the Joint Committee on Atomic Energy are: JOHNSON of Texas, RUSSELL, ANDERSON, GREEN, MCCLELLAN, MAGNUSON, SYMINGTON, BRMGES, SALTONSTALL, HICKENLOOPER, WILEY, MUNDT, and BRICKER. The committee is empowered to receive and consider all bills and resolutions intro- duced in the Senate and all bills and resolu- tions from the House of Representatives proposing legislation in the field of astro- nautics and space exploration; if necessary, pending legislation to be rereferred to the Special Committee. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD - SENATE A primary function of the committee is to provide an adequate forum for the consider- ation of a national policy toward the age of space. The committee to report its findings and recommendations to the Senate before June 1, 1958, or soon thereafter. Passed Senate February 6, 1958. Committee on Aeronautical and Space Sciences S. Res. 327: This resolution creates a new standing Committee on Aeronautical and Space Sci- ences, to consist of 15 Senators, to have juris- diction over all legislation and other matters relating primarily to aeronautical and space activities and matters relating to the scien- tific aspects of such activities except such activities as are assigned to the Department of Defense, and over the National Aeronau- tics and Space Administration. Committee is alsb given jurisdiction to survey and re- view, and to prepare reports upon, the space activities of all agencies of the United States. Passed Senate July 24, 1958. Dorchester Chaplains S. 1225: This measure authorizes the posthumous award of appropriate medals and certificates to Chaplain George L. Fox, of Cambridge, Vt.; Chaplain Alexander D. Goode, of Wash- ington, D. C.; Chaplain Clark V. Poling, of Schenectady, N. Y.; and Chaplain John P. Washington, of Arlington, N. J. The United States troop ship Dorchester was proceeding through Arctic seas during the early morning of February 3, 1943, when an enemy torpedo burst in the ship's engine room. Wounded men, shocked by the ex- plosion, fought their way up through the holds of the disintegrating ship; many of these men had left their lifejackets below. When there were no more lifejackets avail- able, the four chaplins removed their own and gave them to the soldiers. The chap- lains knew they were giving up any chance for survival. They were the last men left on the deck. Their conspicuous gallantry was one of the ,epic examples of heroism during World War II. Passed Senate May 1, 1958. Congressional Medal of Honor Society S. 1857: This measure confers a congressional charter on the Congressional Medal of Honor Society of the United States. This society was organized in 1948 in the State of New York by a group of recipients of the Congressional Medal of Honor to pro- vide a common ground on which all re- cipients of the medal may meet to preserve the dignity of the Nation's highest award. The Congressional Medal of Honor is the highest military award for bravery that can be given to any individual in the United States. It is bestowed on those members of the armed services by a high official of our Government in the name of the Congress of the .United States for a deed of personal bravery or self-sacrifice above and beyond the call of duty while a member of the American Armed Forces in actual combat with an enemy of this Nation. � Public Law 85-642, approved August 14, 1958. � Government Headstones and Markers S. 3882: Authorizes the Secretary of the Army, when requested, to furnish appropriate markers for the unmarked graves of soldiers of the Union and Confederate Armies of the Civil War, members of the Armed Forces of the United States dying in service, former honorably discharged members of such forces, persons buried in post and national cemeteries, and certain members of Re- serve and National Guard components. Public Law -, approved Nuclear Ship Indemnity S. 4165: This measure extends the provisions of the AEC Indemnity Act to the operations of the nuclear ship Savannah. Piiblic Law 85-602, approved 1958. Space Projects S. 4208: Authorizes appropriations to the National Aeronautics and Space Administration of $24,500,000 for expansion of existing facili- ties at Wallops Island, Va.; of $3,750,000 for - a space-project center in the vicinity of Washington, D. C.; and $19,550,000 for equipment and instrumentation at various Installations now operated by NACA. Public Law 85-657, approved August 14, 1558. Military Damages H. R. 1061: This measure grants authority to the Sec- retary of Defense and the secretaries of the military departments to settle claims for damages to, or the loss of, private property caused by a member of the armed Services acting outside the scope of his employment, or in excess of his authority. Expands the settlement power to include claims for personal injury and death. Permits congressional review, amendment, or rejection of the regulations authorized by this act. Public Law , approved Government Headstones and Markers H. R. 4381: Authorizes the furnishing of headstones and markers in memory of members of the Armed Forces dying in service whose re- mains have not been recovered or identified, or were burned at sea. Public Law 85-644, approved August 14, 1958. � Supplies to Foreign Vessels and Aircraft H. R. 5237: - This measure broadens the existing au- thority of the Secretary of Navy and au- thorizes him to furnish supplies and serv- ices, except ammunition, to naval vessels and aircraft of friendly foreign countries on a reimbursable basis without an advance of funds. Public Law , approved � Civil Defense H. R. 7576: This measure changes the policy declara- tion in the Federal Civil Defense Act to read that the responsibility for civil defense shall be vested jointly in the Federal Government and the several States and their subdivisions. It also authorizes the Federal Government to purchase radiological instruments and detec- tion devices and repeals the prohibition against Federal financial contributions to States for civil defense personnel and admin- istrative expenses. -Public Law 85-606, approved August 8. 1958. Advancement on the Retired List of Certain Persons Who Retired With 30 Years' Service HrR. 7706: This measure Would permit those persons enlisted before August 25, 1912, who were given double-time credit for service beyond the continental limits of the United States to have their retirement pay based on the highest grade in which they satisfactorily served during'World War I. Public Law -, approved Settlement of Military Claims H. R. 9022: This legislation increases the authority of the Secretaries-of the military departments to settle claims based on the noncombat activities of the military services now con- tained in section 2733, title 10, United States Code, from $1,000 to $5,000 and permits par- tial payment of a sum not to exceed $5,000 August 8, 18035 where the amount of the claim exceeds $5,000. Public Law -, approved Nuclear-Powered Icebreaking Vessel H. R. 9196: - This measure authorizes the construction of a nuclear-powered icebreaker for service in the Arctic regions. Vetoed August 12, 1958. , Amphibious Vessels H. R. 11518: This measure authorizes the construction of not to exceed 20,000 tons of amphibious warfare vessels and landing craft. Public Law 85-571,-approved July 31, 1958. Naval Vessels � H. R. 11519: This measure authorizes the Secretary of the Navy to use 3 destroyers, 1 submarine, 1 merchant-type vessel, and up to 10 service craft for experimental purposes. These ships are to be used by the Navy to conduct tests of newly developed special weapons for underwater detonation to evalu- ate the safe delivery range for ships that may use the weapons later. The ships selected for this purpose are the U. S. S. Howarth, DD-592, the U. S. S. Killen, DD-593, the TJ, S. Z. Fulliam, DD- 474, the U. S. S. Bonita, SSK-3, the steam- ship Michael J. Moran, and 8 lighter-type barges. Public Law 85-436, approved May 29, 1958. AEC-Authorization H. R. 12009: This measure increased the authorization for the Atomic Energy Commission by $35 million to construct a land-based prototype of a nuclear propulsion plant suitable for installation in a destroyer-type ship. This reactor prototype will be constructed at West Milton, N. Y., in the same sphere that was previously used for the sodium-cooled-re- actor prototype, the Seawolf. Nuclear ships will Lre used to escort fast carrier task forces. Public Law 85-412, approved May 16, 1958. War Risk Hazards H. R. 12140: This measure makes permanent the De- fense Bases Act and the War Hazards Corn- pensation Act. It amends the Defense Bases Act to extend coverage to employees of wel- fare and morale organizations, to define pub- lic work to include movable and service proj- ects, and to eliminate discriminatory exclu- sion of noncitizen emploYees. It amends the War Hazards Compensation Act to pro- vide war-risk coverage for employees of post exchanges and the like, and to modify the definition of war-risk hazard. Public Law 85-608, approved August 8, 1958. AEC Authorization Increase H.R. 12457: - This measure increases the total current authorization for Atomic Energy Commis- sion appropriations by $2,250,000 and pro- vides the same increase in authorized costs for Project Sherwood construction. The present authorization for Project Sherwood construction at Livermore and Princeton is $7,750,000. Under this bill, the Project Sher- wood plant is increased to $10 million, or a net increase of $2,250,000. Public Law 85-519, approved July 15, 1958. Department of Defense Reorganization Act of 1958-Conference Report H. R. 12541: This measure provides as follows: Department of Defense and military de- partments: Eliminates requirement that military de- partments ,be separately administered and provides that they be separately organized under its ?wn Secretary and the Secretary of Defense shall have direction, authority. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 " Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18036 CONGRESSIONAL RECORD - SENATE end control over them. The Secretary of a military department is made- responsible to the Secretary of Defense for the operation and efficiency of his department. Provides that an Assistant Secretary of Defense may issue orders to a military de- partment only through the Secretary of the military department or his designee and only if specifically authorized in a specific area by the Secretary of Defense. Such orders must be issued through the military Secretaries. Requires Secretaries of military ,depart- ments and their assistants to cooperate fully with Office of Secretary of Defense to achieve efficient administration and to carry out the direction, authority, and control of the Sec- retary of Defense. Reduces number of Assistant Secretaries of Defense from 9 to 7, effective 6 months after enactment. Reduces, effective 6 months after enact- ment, the number of Assistant Secretaries for each military department from 4 to 3 and eliminates requirement that 1 Assistant Sec- retary in each department be designated for Fiscal Management and that there be an Assistant Secretary of Navy for Air. Changes in unified commands Authorizes the President, through the Sec- retary of Defense and on the advice of the Joint Chiefs, to establish unified combatant commands and to determine their force structure. Requires military departments to assign to unified commands the force structure deter- mined by the President and permits forces so , assigned to 'be transferred only under pro- cedures established by Secretary of Defense and approved by President. Repeals statutory command authority of Air Force Chief of Staff and Chief of Naval Operations. Authorizes Secretary of Defense to assign responsibility for support of forces assigned to unified command to one or more military departments. Changes in functions: Authorizes the transfer, reassignment, or consolidation (but not abolition) of any function, including combatant functions, un- til the end of hostilities or threat of hostil- ities if the President determines such action necessary because of hostilities or imminent threat of hostilities. Suspends, except during hostilities or threat thereof, the transfer, reassignment, abolition, or consolidation of functions estab- lished by law until 30 days after a detailed report has been submitted to the Committees on Armed Services. If during the 30-day pe- riod either committee reports a resolution finding that the proposed change involves a major combatant function now or hereafter assigned by law and would tend to impair national defense, change would be further suspended until after 40 days of continuous session following date of report. If dur- ing 40 days, a resolution of either House rec- ommending rejection is adopted by a simple majority, the proposed change would not take place. Excerpts from disapproval procedure the authority of the Secretary of Defense (1) to assign any supply or service activity common to more than one service in such manner as he may determine and (2) to assign or reassign to one or more departments the development and operational use of new weapons and weapons systems. ' Defense research and engineering: ' Creates a new statutory position of Direc- tor of Defense Research and Engineering with such duties as would be prescribed by the Secretary of Defense, which would include (1) being principal scientific and technical adviser to the Secretary, (2) supervising re- search and engineering activities, and (3) directing and controlling research and engi- neering activities requiring centralized inanagement. Authorizes the Secretary of Defense, with President's approval, to engage An military research and to contract for research and development through the military depart- ments or by Defense Department personnel. Joint Chiefs of Staff: . Increases Joint Staff ceiling from 210 to 400. Authorizes Chiefs of Staff to delegate to Vice Chiefs of Staff such authority and du- ties as the Secretary concerned approves. Repeals limitation of right of Chairman of Joint Chiefs to vote.' Authorizes Chairman of Joint Chiefs to select Director of Joint Staff and to assign duties to the Joint Staff. Limits tours of Director and members of Joirit Staff to 3 years except in time of war. Other provisions: , Changes reporting requirement of Secre- tary of Defense from a semiannual to an annual basis. Authorizes Secretary of Defense to estab- lish procedures for transfer of officers between services with consent of the officers con- cerned. Provides a statutory basis for the National Guard Bureau and its Chief. � Public Law 85-599.. Approved August 6, 1958. Federal Civil Defense H.R. 12827: This measure extends from June 30, 1958, to Jule 30, 1962, title III of the Federal Civil Defense Act of 1950. Title III author- izes the declaration of a national emergency for civil-defense purposes and vests emer- gency powers in the President and the Fed- eral Civil Defense Administrator during such an emergency. Since the possibility of an attack upon the United States- with modern weapons of enormous destructive powers is at least as great today as when the standby emergency powers were originally authorized, it was felt that the authority should not be allowed to ;expire. Public Law/ 85-514, approved July 11, 1958. Making, Amendment, and Modification of Contracts to Facilitate National Defense H.R. 12894: The purpose of the legislation is to enact into- permanent law during periods of na- tional emergency and for 6 months there- after, with certain exceptions, the authority contained in title II of the First War Powers Act of 1941, which expired June 30, 1958. Public Law , approved Atomic Energy Commission Authorization . H. R. 13121: - This measure authorizes for appropriation the sum of $386,679,000 for acquisition or condemnation of any real property or any fa- cility or for plant or facility acquisition, con- struction, or expansion as set forth in the projects approved. Public Law 85-590, approved August 4, 1958. Permanent Professor of Physical Education at the United States Military Academy H. H. 13170: This legislation provides for an additional permanent professor at the 'United States Military Academy who under 'the. supervi- sion of the Commandant of Cadets, will have immediate charge of the physical education program at the Academy. Public Law , approved Atomic Energy Indemnity � H. R. 13455-: This measure is designed to facilitate in- demnity coverage for universities possessing reactors for atomic energy research. It ex- empts institutions unable to comply with the financial protection requirements of the in- demnity provisions by reason of State con- stitutions or laws from compliance for limited periods to permit States to amend � August 23 constitutions or laws. It also authorizes the Atomic Energy Commission to adjust finan- cial protection requirement for any other educational institution. Public Law , approved Atomic Energy Act H. R. 13482 : This measure' amends the Atomic Energy Act of 1954, in a number of particulars to keep the act up -to date, and to provide the best possible framework for its administra- tion. Its most important provision is 'if) give to the Joint Committee the right to waive the normal 30-day waiting period for pro- posed international agreements for coopera- tion. Public Law , approved Reserve Components H. H. 13374: This measure permits the member of Re- serve components to transfer from one com- ponent to another without loss of exemption or deferment resulting from Reserve com- ponent membership. Public Law 85, approved August 1958. Natural resources National Science Foundation-Weather Study 5.86: � � Authorizes the National Science Founda- tion to undertake a study and research pro- gram in the field of weather modification, including methods of increasing rainfall, suppressing hail, windstorms, and lightning. Public Law 85-510, approved July 11; 1958. Spokane Valley Project S. 2215: As another means of combatting the cur- rent recession and, at the same time, irrigate the arid lands of the West, this measure au- thorizes Federal construction of the Spokane Valley project in Washington and Idaho. The proposed project will serve some 10,- 290 acres located in Washington State and some 197 acres in Idaho. �DeVelopment plans call for replacing existing diversion works and a canal distribution system constructed by private enterprise in the early 1900's with a system for pumping ground water from a number of wells and delivering it, under pressure, through a closed-pipe distribution system. The estimated cost of the project is, $5,016,000. Approximately 26 percent of the cost will be repaid from surplus power revenues of the Bonneville Power Administration, and the remaining 74 percent is to be repaid within 50 years. Passed Senate May 21, 1958. Rivers, Harbors, Flood-Control Authorization S. 3910: This measure, a substitute for Senate bill 497 which passed both Houses and was vetoed by the President, on April. 15, 1958, authorizes $1,556,230,500 as follows: Rivers and harbors: Navigation projects (52) ____ $173, 814, 000 Beach erosion projects (14) _ 11, 627, 700 Eradication of water hya- cinths (1) 4, 725, 000 Upper Fox River, Wis. (i)_ , 300, 000 Calumet-Sag project, Illi- nois (1) 9, 884, 000 Illinois and Mississippi Canal (1) 2, 000, 000 Total of 70 projects 202, 350, 700 Flood control: New projects or project- . modifications (67) -495, 579, 800 Increased basin authoriza- tions (12) 608, 300, 000 Oroville Dam, California (1) 50,-000, 000 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD � SENATE Rivers and harbors�Continued Flood control�Continued _ Missouri River Basin, De- partment of Interior (1) _ $200, 000, 000 Total of 81 projects_ _-_1, 353, 879;800 Grand total of - 151 projects 1, 556, 230, 500 An additional $4,900 was agreed upon for the new flood-control projects: Public Law 85-500. Approved July 3, 1958. Conservation of Land and Water Resources � Senate Resolution 148: This resolution prescribes the procedures for and contents of reports to the Senate by executive agencies. with respect to proposed projects for conservation and development of land and water resources. , It specifies the basis on which the bent,- fits of proposed projects can be evaluated, and on which fair and equitable allocations of costs can be made. This will provide full information regarding proposed projects, and it will enable the Congress to specify 'the terms and conditions particularly with respect to repayments and local contribution. It will provide the basis for fixing rates for sale of electric Power generated at Federal projects. Heretofore, full information on these im- portant matters has not been available to the Congress. As a result, project authoriza- tions have sometimes left the way open for Executive action at variance with congres- sional intent. . The procedures provided by ,Senate Resolution 148, for authorization of multiple- -purpose projects and for clearance of watershed protection and flood-prevention projects, will materially 'improve the means available to the standing legislative commit- tees of the Senate for selecting meritorious prOjects, and for recommending authorizing legislation that will achieve the purposes intended by the Congress. These procedures will expedite the program of land and water resources projects. Senate adopted, January 28, 1958. Saline Water Program Senate Joint Resolution,135: This resolution provides for Federal con- struction of five full-scale demonstration plants for the production, from sea or brack- ish water, of water suitable for agricultural, industrial, municipal, or other uses. " Three of these plants are to be designed for converting sea water; two are to have a capacity of not less than 1 million gallons a day. Two of the plants are for the treatment of 'brackish water, and at least one is to have a capacity of not less than 250,000 gallons a day. � One of the conversion plants is to be located on the west coast of the United States; a second on the east or gulf coast; and the third in the Virgin Islands or some other Territorial possession. One of the brackish water plants is to be located in the northern Great Plains area, and the other in the arid areas of the South- west. The resolution authorizes an appropriation- of $10 million, as needed, for the construc- tion of these plants. � Public Law: , approved Outdoor Recreation Resources�Study S. 846: Establishes a National Outdoor Recreation Resources Review Commission to study the outdoor recreation resources of the public lands. The Commission is to be composed of 15 members, including 8 congressional mem- bers, and will report by September I, 1961, on outdoor recreation requirements indi- cated for 1976 and 2000 together with the recommendations of the Commission on meeting those requirements. Public Law 85-470, approved June 28, 1958. No. 148-36 Preservation of Historical and Archeological Data S. 1109: The act of August 21, 1935, the -Historic Sites Act, provides a program to preserve historical and archeological data threatened by construction of dams. This measure is more explicit than the Historic Sites Act with respect to historical and archeological salvage, and provides essentially for coordi- nation of archeological investigations and salvage operations with advance planning and construction of darns either by Federal agencies or under permits granted by Fed- eral agencies. Passed Senate August 11, 1958. 'Great Lakes Basin Compact S. 1416: , This measure grants consent to a compact between the 8 States abutting the Great Likes to establish the Great Lakes Commis- sion which has as its primary purpose the orderly use, development, and conservation of the water resources of the Great Lakes Basin and to insure that all the Great Lakes may derive the maximum benefit from util- ization of public works. The compact will also assist in maintaining a proper balance among industrial, commercial, agricultural, water supply, residential, recreational, and other uses of the water resources of the area. Passed Senate July 28, 1958. Coal Development S. 2069: This measure increases from 5,120 acres to 10,240 acres the lands which any person may hold under coal leases or permits within any one State. It also authorizes, if certain criteria are met, additional holdings up to 5,120 acres in any one State. - Public Law , approved - Insecticides�Research . S. 2447: � This measure authorizes the Department of Interior to 'undertake continuing studies of the effects of insecticides, herbicides, fungicides, and pesticides upon fish and wildlife to prevent further losses of invalu- able natural resources following applications of these materials, and to provide basic data on various chemical controls. It is anticipated that this research study will determine the amounts and percentages of formulations and chemicals that may be used on wet lands, rangelands, and other lands with a minimum loss of fish and wildlife. Passed Senate May 29, 1958. Public Law 85-582, approved August 1, 1958. ' Migratory Bird Hunting Stamps S. 2617: This -measure increases-the cost of migra- tory bird hunting stamps (duck stamps) from $2 to $3. The revenue, after deducting the cost of printing and distributing the stamps, will be used for th4 location, ascer- tainment, and acquisition Of lands for migratory-bird refuges and waterfowl-pro- duction areas. Grants the Secretary of the Interior discre- tionary authority to open a maximum of 40 percent of any refuge to be used for hunting migratory and resident waterfowl. - This measure also recognizes the desirabil- ity of bringing these lands under Federal control, while, at the same time, permitting waterfowl hunting to continue unabated. A program of preservation through control by Federal acquisition of fee title or lease agree- ment is contemplated to insure the con- tinued availability of these lands for breed- ing purposes. . Public Law 85-585, approved August 1,1958. Salmon and Halibut S. 2719: This measure is an attempt to reestablish the balance of nature between food, sports fish, and a major predator through control 18037 of the predatory dogfish sharks. This is to be accomplished through payments�of boun- ties to fishermen for dogfish sharks.- Passed Senate July 31, 1958. Flood Control Compact S. 2964: This bill grants the consent and approval of Congress to the Thames River Valley flood- control compact entered into between the- States of Connecticut and Massachusetts, creating the Thames River Valley Flood Con- trol Commission. It defines its powers and functions relative to approval of flood-con- trol projects constructed by the United States. The compact provides for reirnbursement by the States for a portion of the taxes lost due to Federal ownership of lands in certain flood-control reservoirs. Public Law 85-526, approved July 18, 1958. Assessment Work�Mining Claims S. 3199: This measure changes the period for do- ing annual assessment work on unpatented mineral claims so that it will run from Sep- tember 1 to September 1 of the succeeding year. This change is designed to meet the needs of claim holders in high mountainous country by giving them sufficient time to do their annual assessment work with a de- gree of continuity during the summer months. , Public Law approved Fisheries Loan Fund S. 3295: This measure increages to $20 million (from $10 million) the fisheries loan fund which is used by the Bureau of Commercial Fisheries to make loans to stimulate the de- velopment of a strong, prosperous, and thriving fisheries and fish-processing indus- try. These loans are for a 10-year period arid carry an interest rate of 5 percent. The loans are used by the fishing indus- try to finance and refinance operations, maintenance,, repairs, replacement, and equipment of fishing vessels and gear and for research into the basic problems of fish- eries. . Passed Senate May 29, 1958. National Park�Concessionaire S. 3371:� This -measure increases to 30 years (from 20) the period of time a concession may be leased in the national parks. A _concession- aire is required to meet certain standards set up by the Park Service. In many cases. they have ..experienced difficulty in securing the funds needed to undertake the develop- ment of new concession facilities, especially where large amounts of capital are necessary. It is believed that the 30-year contracts will ease the credit situation,, and will re- sult in more suitable accommodations for the millions of people who visit our national parks each year. Public Law 85-434, approved May 29, 1958. Tucumcari Project�Repayment S. 3469: This measure is an aid to the Arch Hurley Conservancy District in the irrigation de- velopment of the Tucumcari project, New Mexico, by lightening the repayment loan while the water users are recovering from a series of adverse circumstances that beset the project. These include severe shortage of water during a critical drought period; unfavorable weather conditions; disadvantageous farm price-cost relationship; absence of a cash crop suitable for effective production on the project; and the slowness with which lands have been placed under irrigation. In spite of these difficulties, the project shows evidence of becoming a sound opera- tion with time and encouragement. This measure provides for an annual re- payment of $30,000 each in 1959 and 1960, after which repayments will be made under Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18038 CONGRESSIONAL RECORD - SENATE a variable repayment formula based on the value of crop production. - Pull repayment is to be achieved in 40 years. Public Law 85-663, approved August 14, 1958. National Forests Land Administration S. 3741: Makes the rules applicalite-to Weeks law land applicable to most other land in na- tional forests. Passed Senate July 21, 1958. Mineral Resources Program S. 3817: This measure establishes within the De- partment of the- Interior, by legislative fiat, a program of financial assistance for ,the development of the mineral resources of the � United States, its Territories, and posses- sions, by encouraging exploration for min- erals, a function which, since 1955, has been performed by a directive issued by the Office of Defense Mobilization under authority of the Defense Production Act of 1950. As of June 30, 1958, the Office of Defense Mobilization withdrew its financial support of this operation, so it became necessary for the activities of the Defense Minerals Ex- ploration Administration to be continued by this bill. The need to find new sources of minerals to meet the demands of our expanding econ- omy and of national defense is generally rec- ognized. The DMEA program is contribut- ing significantly to discoveries and develop- ments which are increasing known recov- erable reserves. Continuation of this type of program should reduce the need for a frenzied, costly search for new sources of minerals in any future emergency period, when emphasis should be placed on produc- tion rather than on exploration. Established a ceiling of: $250,000 as the maximum Government participation in any one project, and provided that funds are to be, made available only if the applicant can prove that commercial funds are un- available at reasonable rate. � - Public Law , approved � Rivers-Harbor and Flood Control Projects of 1958 - 'S. 3910: � This measure is a substitute for Senate bill 497, which passed both the Senate and House and was vetoed by the President on April 15, 1958, authorizes $1,556,230,600 as follows: Rivers and harbors: 52 navigation projects__ __ $173, 814, 000 14 beach erosion projects__ 11, 627, 700 1 Eradication of water hya- cinths 4, 725, 000 1 Upper Fox River, Wis 300, 000 1 Calumet-Sag project, Illi- nois 9, 884, 000 1 Illinois and Mississippi Canal 2, 000, 000 . Total of 70 projects 202, 350, 700 Flood control: 67 new projects or project modifications 495, 579, 800 12 increased basin author- izations 608, 300, 000 1 Oroville Dam, Calif 50, 000, 000 1 Missouri River Basin, Department of Interior_ 200, 000, 000 Total of 81 projects_.... 1, 353, 879, 800 Grand total of 151 projects 1, 556, 225, 600 Public Law 85-500, approved July 3, 1958. Missouri River Basin Project-Modification S. 4002: This measure modifies the Glendo Unit, Missouri River Basin project, by authorizing the construction of Gray Reef Dam and Reservoir on the North Platte River down- stream from Alcova Dam at an estimated cost of $700,000. This dam and reservoir will provide a small regulating facility that will protect irrigation, fish and wildlife, and municipal water interests on the stream by stabilizing the flow of the stream throughout the year. Public Law , approved Washoe Project S. 4009: This legislation authorizes an increased appropriation for the Washoe project, Ne- vada-California, from $43.7 million to $52 million to permit the construction of Prosser Dam and Reservoir. A 30,000 acre-foot reservoir is contem- plated at the new site which would provide for water exchange to permit water releases fromi Lake Tahoe to improve fisheries re- source, and to give the area added flood protection. Public Law , approved River Basin Study .S.4021: This meaSure authorizes the creation of a United States Study Commission, composed of representatives of the United States and of the States of South Carolina, Georgia, Florida, and Alabama to make an integrated and cooperative investigation, study, and survey for, the conservation, utilization, and development of the land and water resources of the Savannah, Altamaha, St. Mary's, Apa- lachicola-Chattahoochie, and Alabama-Coosa River Basins, and to formulate a plan to carry out its recomendations. Public Law , approved Domestic Minerals Stabilization Act of 1958 S. 4036: This measure provides a 5-year price and production stabilization program for 5 min- erals-copper, lead, zinc, fluorspar, and tungsten-all vital to the national defense. It provides for the purchase of up to 150;000 tons of refined copper, produced from ores mined in the United States, its Terri- tories, and possessions, at not- more than 271/2 cents a pound; purchases to be made within 1-year period. Provides for the payment of price-stabili- zation payments to domestic producers of lead and zinc, rather than for a purchase program as in the case of copper. The stabilization price for lead is 151/2 cents a pound and 131/2 cents a pound for zinc, or a -combined price for these 2 metals of 29 cents a pound. A bonus of up to 1.125 cents a pound may be paid on up to 500 tons a quarter for each producer if the market price of lead does not exceed 151/2 cents a pound and up to 0.55 cents a pound for zinc if the market price does not exceed 131/2 cents. Provides for a stabilization price of $53 a ton for acid-grade fluorspar, with a maxi- mum limitation on stabilization payments of $13 a ton. Provideg for a stabilization price for tung- sten of $36 per short-ton unit with a maxi- mum limitation on regular stabilization payments of $18 a short-ton unit, plus a bonus payment of $4 a Short-ton unit to any producer who has not sold more than 250 units during any quarter; but not to exceed $40 per unit. Public -Law -, approved August 23 Limits annual payments to 350,000 tons of-lead; 550,000 tons of zinc; 185,000 tons of fluorspar; and 375,000 short-ton units of tungsten trioxide. Authorizes the Secretary of Interior to borrow from the Treasury $350 million to make subsidy payments. Cost possibilities: Maximum possible expendi- tures under the bill S. , 4036, 1st year: Copper, 150,000 tons, at 271/2 cents per pound____ $82, 500, 000 Lead, 350,000 tons at 3.9 cents per pound 27, 300, 000 Zinc, 550,000 tons, at 2.9 cents per pound 31, 900, 000 Fluorspar (acid grade) , 180- 000 tons at $13 per ton 2, 340, 000 Tungsten trioxide, 375,000 short-ton units, at $18 per shat-ton unit 6, 750, 000 Total 150, 790, 000 Additional possible expendi- under bonus payment provisions of title II (as estimated by the Depart- ment of Interior) : Lead, 90,000 tons, at 1.125 cents per pound 2, 025, 000 Zinc, 170,000 tons at 0.55 cents per pound 1, 870, 000 Tungsten, 75,000 units, at $40 per short-ton unit 300, 000 Total 4, 195, 000, Grand total 154, 985,000 Passed Senate, July 11, 1958. Heart Mountain Irrigation District, Wyo. S. 4088: S. 4088 would approve and authorize the Secretary of the Interior to execute a repay- ment contract for the construction costs of the Heart Mountain division, Shoshone rec- lamation project, Wyoming. The amount coliered by the repayment contract is $7 mil- lion for the practically complete gravity system serving about 25,800 acres of irri- gated land, or $8 million if about 2,000 acres of additional land to be served by pumping are added. The repayment period would approximate 121 years for the gravity development and 122 years if the pump lands are brought under irrigation. Passed Senate August 14, 1958. � Coal Research and Development Act S. 4248: The purpose of this legislation is to en- courage and stimulate the production and conservation of coal in the United States through research- and development by cre- ating a Coal Research and Development Commission. Passed Senate August 14, 1958. The Hawaiian Nene Goose S. 4249: S. 4249 would authorize and direct the Secretary of the Interior to promote a pro- gram of research, propagation, and manage- ment necessary to effect the restoration of this threatened species Of waterfowl in its natural habitat. An appropriation of $15,000 per annum for a period of 5 years is author- ized for the purposes of this act. - Passed Senate August 14, 1958. , Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 :IP Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD � SENATE 18039 � Bison H. R. 3402: Provides for a display pasture for the bison herd on the Montana National Bison Range in the State of Montana so that the herd will be more open to the public and ...more easily seen. Public Law 85-622, approved August 12, 1958. Chief of Engineers�Publications 11. R. 4260: This bill authorizes the Chief of Engineers to publish information pamphlets, maps, brochures, and other material on river and harbor, flood control, and other civil works activities, including related public park and recreational facilities under his jurisdiction. It specifically authorizes the sale of this material at a price not less than the cost of reproduction, except for small information booklets. Public Law 85-480, approved July '2, 1958. Yellowtail Dam and Reservoir Senate Joint Resolution 12: This .joint resolution provides for the pur- chase of some 7;000 acres of Crow Indian tribal lands that are necessary to the con- struction of Yellowtail Dam and Reservoir in southeastern Montana on the Big Horn River, and fixes the compensation for the land at $2,172 million. Yellowtail Dam is a multipurpose project with numerous benefits�power, irrigation; flood control, recreation, and 'conservation. It is fully repayable with interest to the Fed- eral Government and will be of great benefit to the Billings-Hardin area which has- been feeling the economy pinch for some months; thus it is a perfect antirecession measure in an area where new sources of employment and income are sorely needed. Public Law 85-523, approved July 15, 1958. Tennessee River Compact H. R. 6701: This measure consents to the States of Ala- bama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee, and Virginia entering into a compact relating to water pollution control of the Tennessee River and to estab- lish the Tennessee River Basin Water Pollu- tion Control, Commission composed of the Commissioners from each State with author- ity to establish standards of water quality and to enforce orders to secure abatement of pollution adversely affecting waters in the basin. The measure also provides for the appointment of a Federal representative on the Commission to maintain liaison. Public Law 85 , approved -.----�-������������e. Land Acquisition�Relocation Costs H. R. 6940: This measure authorizes the Secretary of Interior to reimburse landowners and ten- ants for moving expenses, losses, or damages Incurred as a result of land purchases by - the Federal Government for water conserve- titon and other public-works projects under the jurisdiction of the Department of Inte- rior, including Federal reclamation projects. Public Law 85-433, approved -May 29, 1958. Oil and Gas Leases�Alaska H. R. 8054: This measure provides for the leasing of oil and gas deposits in land beneath nontidal navigable waters in the Territory of Alaska. Geologists have estimated that approxi- mately 90 million acres in the Territory of Alaska are geologically promising for oil ex- ploration. Most of this area is composed of various basins. These basin areas contain an extraordinary large number of lakes and streams of all sizes and descriptions. At the same time, only about 1 percent of the total land area in the Territory is sur- veyed; therefore, it is impossible to describe With precision where these water bodies are located or the areas they cover. Under existing law, no person or agency has the power to grant oil or gas leases in areas beneath navigable waters. The pre- cluding act declares that tidelands and the beds of navigable waters within the Terri- tory are held in trust for the State or States which may be erected out of the Territory. Since there is no practical way of ascer- taining the area of lands beneath navigable waters which may be within the described boundaaries, the lessee or offeror has been -required to pay rental on the basis of the total acreage within the description. It appears that development of the oil resources of Alaska has been impeded because most developers are reluctant to invest the neces- sary sums of money subject to the chance that legislation might open up the water bottoms to leasing by others who, without expenditure of any funds for development, could come in and acquire lands' in any oil structure which might be discovered by the developers. , The overall intent of this bill is to allow leasing of these lands, thereby encouraging the development of this resource. Public Law 85-503, approved July 3, 1958. Reclamation Projects H. R. 8645: This measure provides for variable repay- ment formulas which would provide relief for individual reclamation projects without the need to come to Congress for relief legis- lation. Public Law 85-611, approved August 8, 1958. .Mapping and Aerial Photography II. R. 11123. This measure grants specific statutory au- thority for the Department of the Interior to perform surveys, investigations, and research in geology, biology, minerals and water re- sources and mapping to include Antarctica and the Trust Territory of the Pacific, islands. Public Law �, approved Townsites in National Forests H. R. 12161: This measure authorizes the Secretary of Agriculture to set aside areas of national for- est land and other lands as townsites and -divide such areas Into townlots for public sale. Public Law 85-569, approved July 31, 1958. Fish and Wildlife � IL R. 13138 This measure provides for the consultation with the Fish and Wildlife Service by the agencies of Government engaged in construc- tion work before and during the building of Federal water development projects. This would enable the agencies involved to make known to the Service the projects necessary to- protect fish and wildlife. Public Law 85-624, approved August 12, 1958. Social welfare Contracts�Indian Tribes 5.2592: This measure repeals the requirement that all contracts with Indian tribes, relating to their lands or claims against the United States, be executed before a judge of a court of record. This requirement has placed an undue burden on all contractual parties and has served no useful pursiose. It is felt that the right of review by the Secretary of Interior is sufficient protection to the tribes. - Public Law 85 �, approved 1958. Welfare Funds Disclosure Act S. 2888: This measure requires the managers of all pension and welfare fund plans, except those operated by governmental agencies or chari- table and fraternal organizations, to register with the Department of Labor, giving all pertinent information about the fund's of- ficers and finances. Places responsibility for policing and im- proving these plans upon the participants. Leaves to the States detailed regulation procedures relating to insurance, trusts, and other phases of operation. Requires that managers of any employee- welfare or pension-benefit plans, unless ex- empted, register within 90 days after regu- lations are issued. Requires annual reporting to show amounts contributed by employer and em- ployee, amount of benefits paid or otherwise furnished, number of employees covered, as- sets, liabilities, receipts, disbursements, and other financial activities of the plan, salaries or fees charged to the plan, to whom paid and the purpose. Provides for public examination of these reports. Provides that managers of plans covering less than 100 employees will not be required to report until 2 years after enactment. Places discretionary authority in the admin- istering agency to exempt small plans from either registration or reporting. Authorizes the Secretary to investigate violations and to bring injunctive action in the United States district courts to enjoin violations, and grants the Attorney General authority to institute necessary investiga- tion and criminal proceedings. Provides (a) a penalty of $5,000, or 5 years' imprisonment, or both, for any person will- fully violating or failing to comply with the act; (b) a fine of $10,000, or 5 years' imprisonment, or both, for any person who embezzles, steals, or willfully abstracts or converts to his own use moneys or other property of any employee-benefit plan; and (c) a fine of $5,000, or up to 5 years' impris- onment, or both, if a person acts in an offi- cial capacity in connection with a welfare fund during a time when his right to vote in a State election has been removed because of a criminal conviction. Establishes the duration of the act as 4 years; and requires the administering agency to make a comprehensive report to Congress, including continuance, simplification, or modification recommendations. Public Law , approved Klamath Indian Tribe S. 3051: This measure provides for the continued sustained-yield management of that part of the Klamath Indian Forest which must be sold to pay the_tribal members who with- draw from the tribe as the result of prior legislation terminating Federal supervision over the property of the tribe located in Oregon. This act also makes certain that the Indians receive the fair market value of the part of the forest that is sold. About 70 percent of the Klamath Indians have elected to withdraw from tribal mem- bership and, in order to satisfy the claims of the withdrawees, it will require the sale of almost 2.7 billion-feet of sawtimber dur- ing a period of less than 1 year. This act permits the Departments of In- terior and Agriculture, jointly, to define the boundaries of the tribal forest and the tribal marsh. The Indians who elect to stay in the tribe will keep the part of the' forest that is allocated to them under a management plan providing for sustained yield management. The rest' of the forest that must be sold on behalf of the -withdrawing members will be offered in appropriate units for private purchase� (a) at not less than the appraised realiza- tion value, (b) subject to sustained-yield require- ments that are enforceable by a forfeiture and reversion of title in the event of a vio- lation of the requirements. The Federal Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18040 CONGRESSIONAL RECORD �.SENATE August 23 Government Is also fully protected in the event of a final judgment against the United States resulting from private sales. Public Law 85, approved --. Shoshone and Arapahoe Indians - S. 3203: This Measure restores to the Shoshone and Arapahoe Tribes of the Wind River Reservation, Wyo., title to the minerals, in- cluding oil and gas, and subjects these min- erals to administration under the Tribal :Mineral Leasing Act. The act of August 15, 1953, extinguished the Indian title to the undisposed of, ceded lands that were lo- cated within the Riverton reclamation proj- ect, appioximately 161,500 acres, added them to the public domain, and provided for payment to the Indians of $1,009,500 as com- plete compensation. Although the Indians agreed to the 1953 act at the time, they were not aware that it would result in leasing oil and gas under public land laws without competitive bid- ding and without bonuses. This bill, in effect, returns to the tribes the 10 percent of the proceeds retained by the -United States under the 1953 act. Passed Senate July 1, 1958. Public Law , approved �. District of Columbia Unemployment Compensation S. 3493: This measure raises the maximum number of weeks for which an eligible unemployed benefit claimant in the District of Columbia may receive payment from 26 to 34, and increases the maximum weekly benefit from $30 to $48. The measure authorizes voluntary pay- ments by employers to the unemployment compensation fund in order to avert a per- centage raise in their contributions. It also substitutes for the variable disqualification_ provisions by a uniform 6-week disqualifi- cation. � Passed Senate August 1, 1958. Community Facilities Act S. 3497: This measure Would authorize $1 billion, as an antirecession measure, to provide loans to the State and local governments for the construction of community facilities such as new water systems, sewer systems, hos- pitals, school buildings, and similar public works. Prohibit financial assistance if credit is otherwise available on equally favorable terms and conditions, and require that the policy on purchases and loans must assure retirement or repayment. Permit loans to be made directly or In cooperation or participation with other lend- ing agencies. Authorize loans with maturities up to 50 years at an interest rate of 31/2-percent. Permit $400 million of the total fund to operate as a rexolving fund. Authorize the Administrator, at the re- quest of the borrowers, to postpone pay- ments of principal or interest or both for up to 2 years, but without reducing the total to be repaid. Revise provisions of existing law which until recently have resulted in loans almost exclusively for construction of water and sewer systems, thereby making, almost very kind of State and local public work�eligible. Increase the authorization for Federal planning advanced from $48 million to $98 million. Passed Senate April 16, 1958. Indian Sanitation S. 3694: This measure authorizes the Surgeon Gen- eral to construct sanitation facilities for Indian homes and communities, allowing for participation in projects by Indian groups, local authorities and other public or non- profit organizations. Passed Senate July 24, 1958. e Labor-Management Reporting and Disclosure Act S. 3974: This measure provides for the reporting and disclosure of certain financial transac- tions and administrative practices of labor organizations and employers, to prevent abuses in the administration of trusteeships by labor organizations, to provide standards with respect to the election of officers of labor organizations. The major provisions are: Financial disclosure reports for publica- tion by Secretary 'of Labor: Requires unions to file a detailed report of their financial and organizational structure, membership rules, and business procedures, with substance of reports going to each mem- ber.� Penalties: Destruction of records, false report, or willful failure to report is punish- able with a maximum $10,000 fine for the un- ion, and fine and imprisonment for respon- sible official. Requires full reporting and public dis- closure by employers of expenditures of $5,000 or more to influence or affect employees in the exercise of rights guaranteed by the National Labor Relations Act. Criminal penalties for failure to file or falsification of reports. Requires management middlemen to file financial reports on activities designed to in- fluence workers in their collective-bargaining rights. Criminal penalties for payments by middlemen to union officials. Requires semiannual reporting and public disclosure of trusteeships over subordinate unions. Criminal penalties for failure to file or falsification. Empowers Secretary of Labor to subpena witnesses and books while conducting in- vestigations into possible violations of the reporting sections. � Creates post of Commission ir of Labor Re- ports within the Department of Labor, to be appointed by the President and confirmed by the Senate. Trusteeships: Provides that local unions may be placed under trusteeship only to prevent corrimtion or financial abuses, as- sure performance of union-management con- � tracts, restore democratic procedures or oth- erwise carry out an international union's constitution. Limits trusteeships to 18 months' dura- tion, but permits the Secretary of Labor to bring civil action against a parent union on "clear and convincing proof" of illegality or an absence of good faith. Prohibits transfer of funds from the local union under trusteeship to the parent union, and bars manipulation of local's votes for national delegates. Taft-Hartley revisions: Requires NLRB to assert jurisdiction over all cases covered by the Taft-Hartley definition of interstate com- merce instead of using discretion to exclude whole classes of cases, but permits it to cede to the States certain cases when applicable State law is consistent with Federal law. (No-man's-land amendment.) Permits both replaced strikers and those replacing them on the job to vote in repre- sentation elections. Permits prehire agreements between con- tractors and unions in the building trades and union-shop clauses may be effective in 7 instead of 30 days. � Union elections: Requires that union of- ficials be chosen by secret ballot in both lo- cals and internationals, except that inter- national officers may be elected by convention delegates who have been elected locally by Secret ballot. Maximum term for interna- tional officers is 4 years, for local officers 3 years. Requires that all members receive due no- tice of elections, and be given an opportuinty to nominate candidates. All records must be preserved. Forbids officers to use dues or compulsory levies for campaign purposes. Insures members the right to remove of- ficers for cause by majority vote, after a hearing. Permits a union member, after exhausting union remedies, to file a complaint charging a violation with the Secretary of Labor. If the Secretary finds the violation affected the result of the election, he must file suit in Federal court to set aside the election and have a new election ordered. Corruption procedures: Bars persons con- victed of a felony from holding union office until their civil" rights are restored by execu- tive pardon. Bars persons from union office for 5 years if convicted in a civil action of having failed to file financial reports under the bill. Forbids shakedown pffiketing. Forbids improper unloading fee de- manded by unions of interstate truckers where no actual work is done and no con- tract exists. Makes it a crime for an employer or em- ployer middleman to bribe union officials, or- for-an official to accept a bribe. Ethical practices: Establishes an Advisory Committee on Ethical Practices, including labor, management, and public representa- tives. Declaration of policy favors ethical )3rac- tices codes for unions and employers' asso- ciations. Requires non-Communist affidavits from employers seeking access to NLRB. Passed Senate June 17, 1958. Social Security H. It. 5411: This measure reinstates a mother's in- surance benefits under title II of the Social Security Act of a widow or divorcee that were terminated by remarriage when the new husband dies within 1 year of the re- marriage before the woman can qualify as his Widow for old age and survivors insur- ance purposes. The measure also permits 'interstate in- strumentalities to secure old-age survivors insurance coverage for policemen and fire- men wh are employed by them and are in positions covered under a retirement sys- tem. Public Law 85�, approved August 1958. Hawaiian Home Development H. rt. 8476: This measure makes funds available to the Hawaiian home-loan fund, which is used for home construction and alleratibn of homes for persons of Polynesian blood, by pro- viding an additional source of rentals by diverting to the fund certain rentals of the Hawaiian Homes Commission in excess of the rentals needed to meet :administrative � expenses. � Public Law 85--, approved August , 195 Otoe and Missouria Tribes�Membership H. It. 8524: This measure authorizes the preparation of a roll of persons of Indian blood whose ancestors were members of the Otoe and Missouria Tribe of Indians, and provides for per capita distribution of approximately $143 million to these members. Public Law 85-395, approved May 9, 1958. � Inclusion of Two States Among States to Divide Their Retirement Systems IL It. 11346: The Social Security Amendments of 1956 included a provision permitting 8 States Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 � Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 � CONGRESSIONAL RECORD � SENATE 18041 to divide their retirement 'systems into 2 parts so as to obtain old-age, survivors, and disability insurance coverage, under the States' coverage agreements with the De- ,partment of Health, Education, and Wel- fare, for only those State and local govern ment employees who desire such coverage, provided all future entrants into the retire- ment system are covered under old-age, sur- vivors, and disability insurance. In 1957 this provision was extended to four addi- tional States and to all interstate instrumen- talities. This measure extends this provi- sion to the States of Massachusetts and Vermont. Public Law 85�, approved August 1958. - � Emergency Unemployment Compensation HR. 12065: This is another of a series of measures en- acted by congresS to relieve the suffering of some 5.1 million American unemployed, who once were wage earners. Many hundreds of thousands of these people have exhausted their unemployment compensation benefits under State and specified Federal laws,4since laws now provided by the 48 States, the Dis- trict of Columbia, Alaska, and Hawaii are presently designed to take care of the unem- ployed during limited periods of unemploy- ment. This measure authorizes payment of tem- porary unemployment compensation to indi- viduals who have exhausted these rights un- der State unemployment compensation laws and under Federal laws applying to Federal civilian employees and veterans. It applies to those persons who exhausted their benefits between June 30, 1957 (or any later date the State may establish), and April 1, 1958. It provides that the maximum amount of temporary emergency unemployment com- pensation payable to any individual will be 50 percent of the total amount payable at the time he exhausted his rights before making claim under this act. The Secretary of Labor is authorized to enter into agreements with States or State agencies who desire to take advantage of this temporary extension. The act provides that each State receiving these funds reimburse the Federal Govern- ment before January 1, 1963, and, in case the State fails to do so, the Federal Government will levy an additional tax,of 0.15 percent on employers until the full amount is repaid. Provides that Federal benefits to a State which had temporarily extended its benefits period be reduced proportionately by the amount provided by the State's temporary extension. Includes within the definition of "State," Alaska, Hawaii, and the District of Columbia. Public Law 85-441, approved June 4, 1958. The Fair Labor Standards Act of 1938 H. 4. 12967: This legislation provides or industry-com- mittee review of minimum wage rates appli- cable to employees engaged in commerce or in the production of goods for commerce in Puerto Rico or the Virgin Islands under the Fair Labor Standards Act of 1938, as amended, at least every 2 years instead of once each year as is presently the case; but that the Secretary in his discretion may order an additional review , during any such 2-year period. Public Law 85�, approved 1958. Longshoremen's and Harbor Workers Com- pensation H. R..13021: This measure authorizes the Secretary of Labor, through the use of administrative pro- ceedings, to establish enforceable safety reg- ulations in longshore and ship repair work in the Federal maritime -jurisdiction on the navigable waters of the United States, including drydocks: Such regulations are to be established in consultation with a nine- member advisory committee. Authority to seek injunctions for violations is vested in the Secretary. Public Law 85�, approved August 1958. Special Training for Handicapped War Orphans H. R. 13559: The measure has two major purposes: (1) To authorize the Administrator of Vet- erans' Affairs to approve specialized courses of vocational training for persons eligible for educational assistance under' the War Orphans Educational Assistance Act of 1956, where such courses are found to be suitable to the needs of particular war orphans; and (2) To permit such specialized vocational training, and also restorative training, to be afforded eligible war orphans at age 14, in- stead of at age 18, as provided by existing law. Public Law approved 1958.- � Unemployment Compensation -Funds House Joint Resolution-533: This resolution provides additional funds for unemployment compensation for vet- erans in the amount of $25 million and $18,- 400,000 for Federal employees. Public Law 85-324, approved February 12, 1958. Transportation and Communication Use of Radio and Television Frequencies ' Senate Joint Resolution 106: This resolution authorizes the creation of a commission to investigate the utilization of radio and television frequencies allocated to Federal agencies and instrumentalities. Passed Senate July 21, 1958. Civil Aviation Organization Session Senate Joint Resolution 166: This resolution authorizes the appropria- tion of $200,000 to enable the United States to hold the 1959 meeting of the Interna- tional Civil Aviation Organization. The year 1959 is the 15th anniversary of the International Civil Aviation Organiza- tion which was established by. the Conven- tion on International Civil Aviation signed at Chicago in 1944. ICAO is the principal intergovernmental organization for coopera- tion in the field of civil aviation and has a membership of 72 countries outside the Iron Curtain. ICAO's principal functions are (a) to se- cure uniformity in air navigation regula- tions and standards; (b) to facilitate pro- cedure involved in international air trans- port; (c) joint support of radio, weather, and other air-navigation services; and (d) technical assistance in civil aviation matters to underdeveloped countries. This year's meeting will provide an excel- lent forum for acquainting the world's avia- tion leaders with developments in the Amer- ican jet-transport industry, and for discus- sion of the problems of jet operations which will be faced generally by the various mem- ber governments. . Public Law 85-448, approved June 4, 1958.. Motor Vehicles S. 375 : This measure amends the Interstate Com- merce Act to provide for perfection of secu- rity interests 'in motor vehicles. The meas- ure provides that a security interest will be perfected everywhere against general credi- tors and subsequent purchasers and lienors. 1. If a certificate of title is issued under a statute requiring or permitting indication of a security interest on the title, and the security interest is so indicated on the title; Or 2. If no title has been issued but the secu- rity interest is publicly filed or recorded in a jurisdiction where the law requires or per- mits such filing or recording; or 3. If no title has been issued, and the- security interest cannot be perfected by fil- ing or recording but the security interest has been perfected as to general creditors and subsequent lien creditors under the law of the home State. Public Law �, approved Common Carriers�Government Contracts S-377: This measure amends section 22 of the In- terstate Commerce Act under which the United fits-tees is allowed free or reduced rates for carriage, storage, or handling of property, and transportation of persons or property. at free or reduced rates. This amendment provides that offers, or tenders, to the Government under section 22 by carriers subject to the Interstate Com- merce Act shall be conclusively presumed to be lawful and not subject to attack 3 years after date of acceptance by a properly au- thorized official of the United States. Such arrangements may be canceled or terminated only upon 90 days' written notice. Public Law approved CAA�Security Violations S. 1380 : This measure authorizes the imposition of\ civil penalties for violation of the security provisions of the Civil Aeronautics Act. Following the outbreak of hostilities in .Korea, legislation was enacted authorizing the Secretary of Commerce, upon the direc- tion of the President, to exercise control of the flight of aircraft over certain areas for na- tional security purposes. On December 21, 1950, the President issued an Executive order directing the Secretary to put the program into �effect. At the present, however, the only sanctions which may be applied for violations of the security regulations which have been issued by the Secretary under that authority are either (1) suspension or revo- cation of the pilot's certificate in cases where the pilot is personally chargeable with the violation or against the air carrier's oper- ating certificate where the air carrier is chargeable with the violation, or (2) in the case of willful offenses, criminal penalties. In most cases, these sanctions are too dras- tic for the usual offense. Criminal intent is usually lacking in these cases, which usu- ally involve some unauthorized entry into an air-defense-identification zone through oversight or neglect. It is felt that the normal sanction utilized for minor violations of rules, regulations, or orders is a sufficient penalty to impose-- that of a fine which cannot exceed $1,000 for each violation. Passed Senate by voice vote March 6, 1958. Alaskan Airports S. 1366: This bill amends existing law ,to permit the Secretary of. Commerce to lease real property at the public airports in Alaska and Fairbanks, Alaska, for periods up to 55 years for the purpose of brecting) structures necessary to the operation of these airports. The 1948 act authorized construction and operation of these airports and permitted the Secretary to lease the property on these airports up to 20 years which, at ,that time, was adequate because, prior to the liquida- tion of the RFC, it -was possible for na- tional banks to make loans for construc- tion of commercial facilities on land held under lease for 20 years. Under present law, however, national banks are prohibited from lending money secured by mortgages on leaseholds having less than 50 years to run from the date the loan is made or - acquired. Inasmuch as national banks fur- nish the principal source of financing for the type construction which is undertaken at these airports by private industry, the 20-year maximum lease term prevents the development of these airports. Public Law 85-503, approved July 3, 1958. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18042 CONGRESSIONAL RECORD � SENATE August 23 CAA�Violations S. 1749: Amends the Civil Aeronautics Act of- 1938 to provide for the imposition of civil penal- ties in certain additional cases. Title VI of the CAA Act provides for a comprehensive safety program, including the issuance of safety regulations. This act enlarges the scope of section 610 to include any violation of safety requiremehts by ground personnel, such as mechanics, whose activities, al- though certified, do not directly involve the operation of an aircraft. It also includes certain employers of such personnel as manufacturers holding production certifi- cates and air agencies. The result of these added prohibitions is to permit the use of civil penalties, as an enforcement tool, in certain additional cases which cannot now be reached undef the existing act. Thus, in effect, this ,permits the Secre- tary of Commerce to invoke civil penalties as an appropriate sanction for nonaggravated violations of safety regulations previously denied him. Passed Senate by voice _vote March 6; 1958. 1 Freight Vessels�Alaska�Washington S. 1798: This meature amends existing law to per- mit merchants of southeastern Alaska to form associations or groups for the purpose of acquiring vessels (not to exceed 150 gross tons) to transfer merchandise owned by any one or more, of them to the following places: To or from places within the inland waters of southeastern Alaska and Prince Rupert, British Columbia; to or froth- places with- in, the inland waters in the State of Wash- ington; and from all places located with- in inland waters Of southeastern Alaska to places within inland waters of the State of Washington via sheltered waters. This amendment was considered neces- sary since most of these merchants are small-business men unable to finance ship- ments in 'large quantities; and the commu- nities themselves are towns built on stilts over the water or on the sides of mountains, where there are no warehousing facilities or cold-storage facilities, hence these short- hauls and small tonnage will prove best for their economic situations. Public Law 85 , approVed August 1958. Aircraft and Vehicle Destruction S. 1963: This measure increases the penalties for knowingly giving false information concern- ing the destruction of aircraft and motor vehicles from a 4ne of $1,000 and imprison- ment for not more than 1 year to a fine of � _85,000 and imprisonment for not more than 5 years. This legislation was prompted by the in- creasing number of instances where indi- viduals�pranksters primarily�give false or misleading information affecting the opera- tion of commercial aircraft. Such false re- ports as to bombs being placed on, com- mercial aircraft have caused serious concern not only to airline officials but also to many thousands of persons who utilize this mode , of transportation. Passed Senate May 21, 1958. National Bureau of Standards S. 2114: This measure provides permanent author- ity for the acquisition of field sites for the National Bureau of Standards. These field sites are needed primarily in connection with the radio propagation research pro- grams., conducted by the Bureau's Central Radio Propagation Laboratory now quartered at Boulder, Colo. Incorporates the provisions of Public Law 618, 81st Congress, 2d session, into the Or- ganic Act of the National Bureau of Stand- ards. This act of the 81st Congress permits the construction of buildings and facilities and improvemants to existing facilities. It also clarifies the National Bureau of Standards authority to undertake improve- ments or construction projects and raises the limitations on such projects from $25,000 to $40,000. Passed Senate March 3, 1958 by voice vote. Vessels�Towing Lights S. 2115: This measure brings the provisions of law Which govern the use of towing lights on vessels operating under Pilot Rules for In- land Waters and Western Rivers Rules more nearly into conformity. This will tend to eliminate confusion and possible hazards to vessels going from an area where the in- land water regulations are in effect to an area governed by the western rivers regula- tions, and vice versa. , The act ,will also provide readily dis- tinguishable and identifiable lights for rover- taken and overtaking vessels as another safety precaution. Public Law 85-635, approved August 14, 1958. Ship Contractors�Investments S.2255: Amends the Merchant Marine �Act of 1956 to authorize the Federal Maritime Board ,(Maritime Administration), upon applica- tion of the contractor, to permit, in its discre- tion, investment by the operator of some or all of the, contractor's capital and special reserve funds in approved securities, upon condition that the income from these secu- rites is deposited in the capital reserve fund. � This will eliminate the requirement that the funds be invested in interest-bearing secu- rities, and authorizes investment in any ap- proved securities, including common stocks. These reserve funds are set aside by law to insure ship replacement. By allowing in- vestment in non-interest-bearing securities, a more equitable treatment of these funds will be achieved. The United States will benefit by this change through increased subsidy recapture and taxes and in terms of greater ability of operators to serve the, es- sential trade routes. Public Law 85-637, approved August 14, 1958. Reduced Rates�Air Carrier Employees S.- 2919 : � This act supplies statutory authority for granting free and reduced rate passes by air carriers to their retired directors, officers, employees, and members of their immediate families. In the past, many carriers have regularly granted pass privileges to their retired per- sonnel on a space-available basis under sec- tion 403 (b) of the Civil Aeronautics Act. Under existing law this section allows car- riers to give free -and reduced rate transporta- tion to their '"directors, officers, and employ- ees and their immediate families"; however, on October 18, 1957, the Civil Aeronautics Board issued a ruling that section 403 (b) 'could not be construed to cover retired em- ployes. Since this practice has been traditional in the industry and become imbedded in the carriers' labor-relations structures, Congress felt statutory sanction should be given. This measure in no way. requires the carriers to extend pass privileges to the persons covered, - but merely allows them to do so as space be- comes available or on whatever baps the air carriers desire to work out. Passed Senate by voice vote March 6, 1958. Alaska International Rail and Highway � Commission S. 2933 : This measure extends the life of the Alaska International Rail and Highway Commission to February 1, 1960, and increases its au- thorization. Public Law 85-601, approved August 8, 1958. Dealers' Aircraft Registration Certificates S. 3016: This measure amends the Civil Aeronautics Act to provide specific statutory authority for the Secretary, of Commerce to issue deal- ers' aircraft registration certificates. It also provides that aircraft held under such cer- tificates would be (to the extent provided in regulations of the Commerce Department) deemed registered under the Civil Aeronau- tics Act, which will make it possible to insure the validity of liens recorded against such aircraft. These certificates may be used by the holder to operate aircraft for production flight tests, in ordinary trade channels, 'and for demonstration purposes. Passed Senate by voice vote March 3, 1958. Rural Carriers�Equipment Allowance S. 3050: This measure increases the basic- equip- ment allowance for rural carriers of the Post Office Department to 11 cents a mile from the present rate of 9 cents a mile, and pro- . vides a minimum allowance of $3.50 a day. In actual operation, this means that a rural carrier with a route of 32 miles or less will receive $3.50 as a minimum allowance, and carriers with routes in excess of 32 miles will receive 11 cents a mile. The equipment allowance for rural car- riers has not been increased since 1951. Since that time the cost of automobiles has in- creased over 30 percent; repairs over 60 per- cent; license and other taxes over 40 per- cent; insurance approximately 30 percent; gasoline and oil some 20, percent; and, other operating costs proportionately. Public Law 85-399, approved May 14, 1958. Canadian Vessels�Alaska S. 3100: Extends for another year (until June 30, 1959) a waiver of the statutory requirement that vessels of the United States registry be used in passenger or freight transportation between the United States and Alaska. Permits Canadian-flag vessels to carry pas- sengers and freight between Ryder, Alaska, and other ports in southeastern Alaska and foreign ports. The waiver is necessary because the Alaska Steamship Co., an American concern, has suspended those operations described in the waiver, leaving the southeastern Alaska ports without available,American transportation. Public Law 85-473, approved June 30, 1958. Transportation Act of 1958 S. 3778: This measure amends the Interstate Com- merce Act so as: To establish a $500 million program of guaranteed loans for capital expenditures and maintenance under the administration of the Interstate Commerce Commission to 'aid temporarily in the financing of railroads subject to the Interstate Commerce Act, that are unable to obtain needed funds upon rea- sonable terms through ordinary commercial channels; To amend ratemaking section of the Inter- state Commerce Act, section 15 (a) , to assure consistency on the part of the ICC in cases involving minimum rates in order that car- riers may assert their inherent advantages in making rates but subject to the objectives of the national transportation policy; To make more effective those provisions of the Interstate Commerce Act enabling the Interstate Commerce Commission to remove discrimination against- interstate or foreign' commerce found to result from intrastate rates; To vest the Interstate Commerce Commis- sion with authority to authorize, in proper cases, the discontinuance, curtailment, or consolidation of unprofitable railroad serv- ices unduly burdening interstate commerce; yet assuring to the State commissions pri- mary jurisdiction over wholly intrastate Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 � CONGRESSIONAL RECORD - SENATE commerce, stations, depots; or other facil- ities; To establish the scope and apalication of the agricultural commodities clruse under which motor vehicles engaged in the trans- portation of certain commodities are exempt from economic regulation under the Inter- state Commerce Act and to redefine the ex- emption to bring under economic regulation frozen fruits, frozen vegetables, and frozen berries, but excluding from regulation cooked or uncooked (including breaded) fish or shellfish, when frozen or fresh; To make it clear that all commercial trans- portation of property by motor vehicle in interstate or foreign commerce, except pri- vate carriage and transportation otherwise specifically exempt, is subject to regulation. Public Law 85-625, approved August 12, 1958. Day Signals for Certain Vessels S. 3951: This measure authorizes the Secretary of Treasury to prescribe day signals for certain vessels. Public Law 85-656, approved August 14, 1958. � Lake Champlain Bridge Commission House Joint Resolution 382: This measure authorizes the Lake Cham- plain Bridge Commission, set up by the States of New York and Vermont, to continue to collect reasonable tolls for maintenance and operation; to establish a reserve fund for future maintenance and operation of the Crown Point and Rouses Point Bridges across Lake Champlain; and to defray the cost of studies for a proposed third bridge in the vicinity of Pittsburg, N. Y. These tolls may be collected until the in- terested States provide a different method and procedure for operating and maintaining these bridges. � Public Law 85-504, approved July 3, 1958. Vessels-Trade-Ins H. R. 3210: This measure extends to June 30, 1962 (now June 30, 1958) the authority of the Federal Maritime Board to declare a vessel obsolete which meets the requirements of the act if 12 years old or older. Without this extension, only vessels that are at least 17 years old may be traded in for an allow- ance on a new vessel. With the majority of subsidized vessels nOw in active service due to reach their nor- mal retirement age of 20 years within the 1962-66 period, financial and shipyard ca- pacity considerations make it imperative that replacement be spread over a term of years. To effect this with the least possible strain on all concerned, some of the vessels involved must be 'retired prior to their at- taining 20 years of service, while others must be continued in service beyond their normal useful life span. Thus,�continued authority to accept some vessels for trade-in at less than the 17-year age will afford the Maritime Administration the necessary flexibility for meeting the specific problems of the various lines. Public Law 85-332, approved February 20, 1958. Navaho-Hopi Reservation Roads S. 3468: This measure amends the Navaho-Hopi Rehabilitation Act of 1950 by providing an additional $20 million authorization for the construction of roads on the two reserva- tions. In the 81st Congress, after extensive in- vestigation and study a 10-year rehabilita- tion program was enacted for the Indians residing on these two reservations. To aid in the rehabilitation work Congress author- ized $88,570,000 to be spent for special proj- ects to raise the standard of living. Among the projects was a $20 million road Improvement program on the two reserva- tions. At that time, it was believed that 1,000 miles of badly needed country-type roads could be constructed for this amount. Since 1951, however, congressional appro- priations totaling some $14 million have re- sulted in the construction of only 371 miles of improved roadways due to increased con- struction costs. This additional authoriza- tion is required in order for Congress to live up to its original commitment and thus per- mit these tribes to continue their economic expansion and development of their tribal assets. Public Law 85 approved 1958. Automobile Labeling Bill S. 3500: This measure requires car manufacturers or importers to display a price tag the windshield or window of a new car in the form of a label. The label is to set forth separately the basic retail price of the car suggested-but not fixed-by the manu- facturer, the suggested retail price of each accessory, and the total transportation cost to the dealer. The bill does not infringe upon the free- dom of the manufacturer to price his own product, it does, however, assure the pur- chaser that he has necessary basic cost in- formation. For the purpose of this bill an automobile would remain "new" until it is purchased by a person for purposes other than resale. For failure to comply with the provisions of this act, a violator may be fined up to $1,000, imprisoned for 1 year, or both. Makes the act effective October 1, 1958, or upon the introduction of any new model in any line of automobile beginning after the date of enactment, whichever date occurs last. Public Law 85-506, approved July 7, 1958. Federal Airport Act Amendments S. 3502: This measure extends through fiscal 1963 the Federal Airport Act which is designed to assist local counnunities in developing new or expanding existing airports so that a sys- tem of, public airports may be achieved ade- quate to meet the present and future needs of-civil aeronautics. This assistance is in the form of grants on a matching-fund basis. In the extension, effective at the beginning of fiscal 1959, these funds are increased to $100 million annually. The bill also provides a separate, emer- gency fund of $75 million for immediate dis- cretionary allocation by the Secretary of Commerce during fiscal 1959, on a matching- 'fund basis. This fund is to be used to pre- pare the country for the advent of the jet- passenger planes; which will require runways from 10,000 to 15,000 feet with heavier bases, wider taxiways, and better loading-ramp fa- cilities.' It eliminates parking lots and certain con- cession areas in terminal buildings from eligibility for Federal matching funds under the provisions of the act. It provides Fed- eral assistance on a-matching basis to certain small airports for runway improvements. Another change is the requirement that the Secretary of Commerce publish, by Jan- uary 1 of each year, the proposed program of airport development for the next fiscal year. Public Law , approved 1958. Shipping Contracts 4-S.3916: Extends for_2 years tie provisions of the 1916 Shipping Act relating to dual-rate con- tract arrangements. Dual-rate contracting is a practice whereby a conference estab- lishes' tariffs of rates at two levels, the lower of which is charged to shippers who agree to ship their cargoes on vessels of members of the conference only and the higher of which is charged to merchants who do not so agree. The measure becomes effective immediately upon enactment, but it is of a temporary 18043 nature, and will continue in effect only until June 30, 1960, thus providing a reasonable time for a thorough consideration of the merits of the dual-rate system. It makes valid any existing dual-rate contract-ar- rangements unless canceled or modified by - the Federal Maritime Board. In effect, mere- ly continues on a temporary basis a system that has been used by both shippers and shipping lines over the years. Public Law 85-626, approved August 12, 1958. , Panama Canal Zone-Utility Lines H. R. 3604: This measure makes it a feloily to injure or destroy works, property, or material of communication, power, lighting, control, or signal lines, stations, and systems operated by the United 'States in the Canal Zone specifically protecting the public utility � installations of the Panama Canal company. Offenses of the type to which this bill is directed must now be prosecuted as misde- meanors under Canal Zone Code sections re- lating to petit larceny or malicious injury to property, telegraph, or telephone lines. The extension and broadening of existing law against willful or malicious interference with public utility installations in the Canal Zone would also be applicable to offenses in- volving privately owned and operated facili- ties. Public Law 85-419, approved May 19, 1958. Intercoastal Shipping Aet S. 4196: This measure grant; relief to ocean com- mon carriers in the intercoastal trade by per- mitting them to issue in lieu of the archaic long form of passenger tickets, bills of lading, dock receipts, and other documents, less costly short form, if the terms and conditions under which they are issued are filed with the Federal Maritime Board, posted con- spicuously on the vessel and made available, on reqUest to passengers, shippers, or con- signees. Public Law 85, approved , 1958. Postal Stations-Strategic Installations H. R. 4815: This measure grants to the Postmaster General permanent authority to establish postal stations at camps, posts, or stations of the Armed Forces, and at defense or other strategic installations. This authority makes it possible to provide efficient mail service for these installations at the lowest cost to the Post Office Depart- ment, by permitting the Department to as- sign trained postal personnel to man these stations or branch post offices. Public Law 85-372, approved April 9, 1958. Air Subsidies H. R. 5822: This measure provides that, on or after April 6, 1956, an airline receiving a Govern- ment subsidy may retain the capital gains received from the safe of used flight equip- ment, if the amount is reinvested in new' flight equipment. Losses sustained in dis- position of flight equipment are also excluded in determining subsidies. This act has no effect on the payment of income or capital gains taxes by the airlines. Prior to this enactment capital gains of air- lines, receiving a Government subsidy, were applied as a reduction of the amount of the subsidy. Public Law 85-373, approved April 9, 1958. Postal Aate Increases H. R. 5836: This measure increases by $550 million a year the postal revenues when all of the postal-rate adjustments become effective. ,These increases are: First-class mail (effective August 1, 1958) : Letters, 3 cents to 4 cents; postal cards, 2 cents to 3 cents; drop letters, 2 cents to 3 cents. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18044 CONGRESSIONAL RECORD � SENATE Domestic airmail (effective August /, 1958) : Letters, 6 cents to 7 cents; postal cards, 4 cents to 5 cents. - Second-class mail: 3 _ annual incre- ments of approximately 10 percent each on the reading portion of publications, and 3 annual increments of approximately 20 percent each on the advertising portion. Step increases effective January 1 of the next 3 calendar years. Minimum charge per piece on publications is increased from one-eighth of a cent annu- ally until it reachese one-half cent; however, publications of certain nonprofit organiza- tions and publications designed for classroom use are exempt. Controlled circulation publications in- creased from 10 cents for those not over 8 ounces and 11 cents for those over 8 ountes to a uniform rate of 12 cents a pound regard- less of weight. Third-class mail: Piece rate on individual mailings raised from 2 cents to 3 cents on the first 2 ounces and from 1 cent to 11/2 cents for each additional ounce. Effective August 1, 1958. Piece rate on bulk mailings of circulars raised from 11/2 cents to an eventual rate of 21/2 cents in two equal increments of one- half cent each. Effective January 1, 1959. Minimum charge per piece for bulk matter by certain nonprofit organizations is 50 per- cent of the regular minimum rate. Pound rate on bulk mailings of circulars Increased from 14 cents to 16 cents. Annual fee for mailing permits raised from $10 to $20. Fourth-class mail: Pound rate raised from 8 cents on the 'first pound and 4 cents for each additional pound to 9 cents on the first pound and to 5 cents on each additional pound. Effective August 1, 1958. Postal policy: Provides that the total loss on mail carried free or at reduced rates is to be considered as public service to be paid from the general fund of the Treasury. Postal modernization fund: Establishes a Postal Modernization Fund in the Treasury for research and development of improved equipment and facilities. Public Law 85-426, approved May 27, 1958. Obscene Mail � H. R. 6239: This measure amends section 1461, title 18, United States Code, so as to allot,/ prose- cution for mailing obsence matter not only at the place of deposit in the mails, but also at the place of delivery where the obscenity has its effect on the recipient. It also dou- bles the penalties if obscene matter is mailed to persons under 19 years of age with the knowledge or reason to believe that the re- cipient is under 19. Public Law 85�, approved August Merchant Marine Academy H. R. 7052: This measure amends the Merchant Ma- rine Act of 1936, as amended, to provide for the appointment of cadets to the Merchant Marine Academy from the District of Colum- bia, Guam, American Samoa, the Virgin Islands, and the Canal Zone as follows: Canal Zone: 2 vacancies to be allocated each year. Guam: 1 vacancy each year. American Samoa: 1 vacancy each year. Virgin Islands: 1 vacancy each year. District of Columbia: 4 vacancies each year. Under existing law, in addition to the ap- pointment of cadets from the several States, the appointment of one cadet each from the Territories of Alaska and Hawaii, and the Commonwealth of Puerto Rico, is authorized. This measure will accord the same privilege and benefit to young men from Guam, Amer- ican Samoa, and the Virgin Islands, from among candidates nominated by the gover- nors of those areas, as well as to candidates from the District of Columbia, and the Canal Zone. Public Law 85-331, approved February 20, 1958. Great Lakes�Navigation Rules HR. 7226: This measure is designed to remove any doubt as to the application of the United States Rules for Preventing Collisions on the Great Lakes to all vessels, of foreign as well as of United States registry, while they are navigating within the territorial waters of the United States. Present statutes are so worded as to per- mit the interpretation that foreign vessels are not required to accept and obey the rules which more specifically apply to United States flag vessels navigating on the Great Lakes and their tributary and connecting waters. Public Law 85-350, approved March 28, 1958. Social Security H. R. 7570: \ This measure provides social-security cov- erage for certain employeees of tax-exempt organizations which erroneously but in good faith failed to file the required waiver cer- tificate in time to provide the coverage. This would cover not only failure due to mistaken belief that the waiver was filed but also failure due to an assumption_that filing was unnecessary. � Public Law �, approved August 1958. Free �Transit at the Panama aCnal for Ves- sels Operated by State Nautical Schools 11. R. 7779: � The bill restores to training vessels op- erated by State nautical school the privilege to transit the Panama Canal without pay- ment of tolls. Publiclaw , approved , 1958. Issuance of Licenses to Noncitizens for Radio Stations on Aircraft H. R. 8543: The purpose of this legislation is to give -the Federal Communications Commission discretionary authority to issue licenses to noncitizens for the operation of aircraft radio stations in the case of persons holding United States pilot certificates or in the case of persons holding foreign aircraft pilot cer- tificates which are valid in the United States on the basis of reciprocal agreements entered into with foreign governments. Public Law , approved , 1958. Vessels�Disposal H. R. 8547: This measure authorizes the Secretary of the Navy to dispose of seven uncompleted vessels, namely, the U. S. S. Kentucky, the U. S. S. Hawaii, the U. S. S. Lansdale, the U. S. S. Seymour D. Owens, the U. S. S. Lancetfish, the U. S. S. Unicorn, and the U. S. S. Walrus. The Navy conducted studies of the cost involved in converting these vessels to mod- ern ships and concluded that the cost and manpower could not be justified in the altered design as compared to that of a new ship. Even in an emergency, if time were available the Navy considers that it would be more advantageous, from the standpoint of both time and money, to build new ships. Public Law 85-438, approved May 29, 1958. Highway Program�Accelerated H. R.9821: This measure is another in a series de- signed to alleviate, or help to alleviate, the August 23 serious economic condition which the Coun- try is facing. The purpose of this act is two- fold: Provide additional Jobs for the unem- ployed and, at the same time, give the Nation the highways so badly needed by: 1. Increasing by $400 million, to $1275 billion, the fiscal 1959 authorization for Fed- eral-aid primary, secondary, and urban roads, for immediate apportionment. The $400 mil- lion is to be available only for expenditure on contracts awarded by the States before December 1, 1958, which provide for com- pletion of construction before December 1, 1959, subject to delays not the fault of the contractor or created by acts of God. The amount apportioned to a State not expended on December 1, 1958, will lapse. After the $400 million has been apportioned, a State may spend its share of these funds without limitation as to the percentage to be utilized on any one system. Federal share of any project out of the $400 million will be 662/3 percent and the State's share 331/2 percent. 2. Authorizes $115 million for fiscal 1959 as advances to assist any State in matching Federal funds for the primary, secondary, and urban systems up to 20 percent of the State's share, to be repaid by the States in two equal installments from funds appor- tioned to the States in fiscals 1961 and 1962. 3. Increases by $200 million, to $2.2 billion, the fiscal 1959 authorization for the Inter- state Highway System to/the States on the usual 90-10 matching basis, to be-)appor- tioned immediately in accordance with.exist- ing law. 4. Authorizes a $300 million increase, to $2.5 billion, in each of fiscal years 1960 and 1961 for the Interstate Highway, the fiscal 1960 authorization to be apportioned any time after June 30, 1958, on the basis of the estimates of cost of completing the Interstate System. 5. Authorizes $900 million for fiscal 1960 and $925 million for fiscal 1961 for regular Federal-aid highway systems, primary, sec- ondary, and urban systems, the so-called ABC roads. These funds to be apportioned to the States in accordance with existing law, and matched on a 50-50 basis. 6. Authorizes a one-half of 1 percent bonus in Federal Interstate Highway funds to States that agree to regulate billboard advertising within 660 feet of new rights-of-way along the Interstate Highway System begun after July 1, 1956. Limits permitted signs to four types along the system and prohibits signs advertising illegal activities. Authorizes re- imbursement to the States for the cost of acquiring the advertising easements not to exceed 5 percent of the cost of the right-of - way. 7. Suspends for fiscal years 1959 and 1960 the pay-as-you-go provision of the Federal- Aid Highway Act of 1956 under which high- way user taxes must be collected in the highway trust fund before apportionment of 'Federal funds to the State, which, in effect, makes available about $1.2 billion more for the Federal-aid program. 8. Increases by $5 million fiscal 1959 au- thorizations for forest highways; $5 million for forest development roads and trails; and $1 million for public lands highways. For- est highway authorizations are to be appor- tioned on the same basis as for 1958. 9. Authorizes for each of fiscal years 1960 and 1961 the following: Forest highways, $33 million; forest development roads and trails, $30 million; national park roads, $18 million; parkways (authorized), $16 million; Indian reservation roads, $12 million; public lands highways, $3 million. 10.. Below is a summary of funds author- ized for Federal-aid highways (in mililons) : Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release c 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 1958 CONGRESSIONAL RECORD SENATE 18045 _.J System Fiscal year � ,9781,ein Fiscal year � 1959 1960 1961 1962 1959 1960 1961 1962 11E,GULAR, . .... _ Primary 180 405 416.25 1, 001. 25 Forest highways 5 33 33 71 Secondary 120 270 277. 50 667. 50 Forest development roads and trails 5 30 30 65 Urban � 100 225 231.25 556.25 Park roads and trails 16 16 32 Parkways 18 18 36 400 900 925 2, 225 Subtotal Indian roads 12 12 24 Advances 115 115 Public lands highways 1 3 3 7 Interstate_.. 200 300 300 800 --- 11 112 112 235 Subtotal (miscellaneous roads) 715 1,200 1,225 3,140 Subtotal 726 1,312 1, 337 3,375 Total Public Law 85-381, approved April 16, 1958. Highway Construction H. R. 10426: This measure amends the Federal-Aid Highway Act by increasing from 5 to 7 years the period in which actual construction shall commence on rights-of-way acquired for such construction.. Public Law 85-597, approved August 6, 1958. Establishment of Postal �Stations H. R. 10495: Present law authorizes the establishment of postal stations and branch offices within a radius of 5 miles of the outer boundaries of the adjacent city wherein the main post office is located. Public Law , approved Navigation Congresses H. R. 11305: Authorizes funds to finance the 1961 meeting of the Permanent International As- sociation of Navigation Congresses.. Public Law 85-598, approved August 6, 1958. Superliner Passenger Vessels�Construction H. R. 11451: This measure authorizes the Federal Mari- time Board to construct two superliner pas- senger vessels, one to replace the steamship America on the North Atlantic route, the other for use between the west coast of the United States and the Far East, replacing .the steamship President Hoover. Both of the vessels to be replace' will have exceeded their normal 20-year useful life before con- struction of their replacements are com- pleted. Concurrently with entering into contracts with the shipyards for construction of these vessels, the Board is authorized�to enter into contracts for the sale of the vessels, com- pletely outfitted and equipped, to the United States Lines Co. in the case of the steam- ship America replacement for $47 million, and to the American President -Lines, Ltd., for the steamship President Hoover replace- ment for $34 million, or 45 percent of the domestic construction cost of the vessel fully outfitted and equipped, whichever is the greater. Public Law 85-521, approved July 15, 1958. Section .77 (c) (2) of . the Bankruptcy Act H. R. 12217: The purpose of the legislation is to amend paragraph (2), subdivision (c) of section 77 of the Bankruptcy Act, the railroad re- organization section, to allow the debtor, with respect to safety, location of tracks, and terminal facilities to comply with the lawful orders of a State regulatory body so that needed improvements in railroad facil- ities can be made prior to the confirmation of a plan of reorganization. Public Law August Highways H. R. 12776: This measure revises and codifies the laws relating to highways. Public Law . approved No. 148-37 Switchblade Knives H. R. 12850: This measure prohibits the manufacture for, or transportation or distribution in, in- terstate commerce or in any Federal terri- tory, of switchblade knives or other con- cealed-blade knives which open by opera- tion of inertia or gravity. Penalties are a fine of not more than $2,000 and imprison- ment for not more than 5 years, or both. Designed to prevent the use of such knives by criminals and juvenile delinquents, the measure excepts from its operation the armed services and . those operating under contract with the services and the possession by a one-armed person of such knife with a blade 3 inches or less. Public Law 85-623, approved August 12, 1958. Authorizing Certain Payments Out of the Vessel Operations Revolving Fund HR. 13371: This bill would authorize the Secretary of Commerce to pay to any person to whom he chartered vessels under the Merchant Ship Sales Act of 1946, as amended, an amount equal to the fair and reasonable expenses In- curred by such person during the calendar - year beginning January 1, 1957, to cover the costs of breaking such vessels out of the reserve fleet and activating them for service. Public Law , approved Interstate Compacts for Traffic Safety Programs House Joint Resolution 221: This resOlution would allow the States to enter into agreements or compacts...with one another to establish and carry out traffic safety programs. It would also allow the States to establish agencies to carry out such programs. States could enter into compacts to pass uniform traffic laws, driver educa- tion and training laws, and other regula- tions which would provide uniform solutions to common traffic problems. They could also do joint research in safety programs. Public Law , approved Veterans Veterans'ReadjustmentAssistance Act of 1952 S. 4031: This bill amends the Veterans' Readjust- ment Assistance Act of -1956, popularly known as the Korean GI bill, so as to elimi- nate a highly undesirable situation which sometimes occurs under the provisions of the act concerning a "change of program." The specific purpose -of the bill is to pro- vide that, in determining whether a veteran may make a change in his program of edu- cation or training under the Korean GI bill� "a change from the pursuit of one objective or level of education or training to the pur- suit of a higher objective, or level of educa- tion or training in the same field of study or training" will be considered a continuation of his ori- ginal program rather than a change to a new Program. Passed Senate August 14, 1958. Veterans�Widows Pension H. 33.358: This measure increases the monthly rates of pension payable to widows and former widows of deceased veterans of the Spanish.. American War, including the Boxer Rebel- lion and the Philippine Insurrection. It applies only to widows of advanced age. It increases the Spanish War, Civil War, and Indian War widows' pension rate of $54.18 to $65 a month in case the widow is 70 years of age or over. If the widow was the wife of the veteran during the period of. his service, the rate of $67.73 a month will be increased to $75 a month. The pension rates will continue to be uniform for these groups. The measure includes proportion- ate increases for children. The average age of the widow married to the veteran during the period of his service is 80 years. The Mexican War widows' rates of pension of $52.50 a month are increased to $65 a month. There are only 4 widows on the roll. The measure also provides for a pension to the widows of veterans who served in the military or naval forces of the Confederate States of America during the Civil War at the same rates as provided for widows of the Union forces. Public Law 85-425, approved May 23, 1958. Reservists�Retired Pay Waiver � H. R. 1140: - This measure extends to retired members of the Reserve components of the uniformed services the provisions of existing law which permit personnel of the Regular components who are receiving retired pay to waive a portion of that retired pay in order to draw compensation from the Veterans' Adminis- tration. Thus, in effect, this legislation grants to reservists, enlisted and officers alike, a priv- ilege that is now applicable only to regulars. The advantage 'is that a person who can draw compensation from the Veterans' Ad- ministration is allowed to exclude that com- pensation from his income for tax purposes whereas all retirement pay, other than re- tirement pay for disability, is taxable. Public Law 85-376, approved April 11, 1958. Veterans H. R. 3630: . This measure amends the Veterans Benefits Act of 1957 to provide an additional aid and attendance allowance of $100 per month to certain severe service-connected disabled vet- erans during periods in which they are not hospitalized at Government expense. Public Law , approved Veterans' Benefits H. R. 5322 : This measure extends dependency and sur- vivor benefits to the dependent husband of a female veteran if he is totally and perma- nently disabled and incapable of self-support due to his physical and mental disability. Public Law 85-655, approved August 14, 1958. Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 18046 CONGRESSIONAL RECORD� SENATE August 23, 1958 Hospitalization in the Philippines H. R. 6908: This measure authorizes modification and extension of the grants-in-aid program to the Republic of the Philippines for the hospital- ization of certain veterans, to restore eligi- bility for hospital and medical care to cer- tain veterans of the Armed Forces of the United States, residing in the Philippines. It is designed to present a more practical and constructive approach as a solution to the varied problems surrounding the extent and type of medical care to be provided for those Filipino veterans who served with our forces during World War II. The measure also restores eligibility for hospitalization and outpatient medical care for service-connected conditions to United- States veterans permanently residing in the Philippines. In addition, hospitalization- is authorized for ,United States War veterans for non-service-connected disabilities if they are unable to defray the expenses of private hospitals. �-� In effect, this measure terminates as of June 30, 1958, the existing program of grants-in-aid and substitutes a revised and extended program to operate through June 30, 1963. Under this new plan the Veterans' Administration contracts with the Veterans' Memorial Hospital to pay a lair and reason- able per diem rate for service-connected dis- abilities. The total of these payments, plus any payments for authorized travel expenses in connection with hospital care, -is not to exceed $2 million in any one fiscal year. Public Law 85-461, approved June 18, 1958. Veterans' Readjustment Act Amendment H. R. 7251: This measure amends the definition of the term "State" in the Veterans' Readjustment Assistance Act of 1952, popularly known as the Korean GI bill, and the War- Orphans Educational Assistance Act of 1956, to make clear that the benefits of those acts may be afforded to eligible persons who wish to pur- sue a course of education or training in the Panama Canal Zone. � The bill also amends the War Orphans Educational Assistance Act so that per- sons eligible for benefits under the act may. � obtain these benefits while pursuing a course of training in the Republic of the Philip- pines. Presently, eligible persons residing in the Philippines must travel to the United States to obtain these benefits, because they are not available unless the person trains in an institution located in the United States, a United States Territory or possession, or the Commonwealth of Puerto Rico. While this amendment does not enlarge the class of persons eligible for the benefits, it does re- move the travel problem and, thereby, en- larges the class of persons Who may actually obtain benefits. Public Law 85-460, approved June 18, 1958. Veterans Reemployment Rights H. R. 8522: This measure gives to a member of a Re- serve component of the Armed Forces who is ordered to an initial period of active duty for training of not less than 3 continuous months all reemployment rights provided for persons inducted under the Universal Military Training and Service Act. Such a member may not be discharged without cause, for 6 months after restoration but is not entitled to any preference rights Ovg.: veteran with a superior Clain under the � Veterans Preference Act. The measure also provides that both pub- lic and private employees, other than those described in the above paragraph, shall be granted leaves of absence for the period re- quired to report for induction into, entering, or performing active duty for training or inactive duty training. At conclusion of training the employee will be permitted to return with such seniority, status, pay, and vacation as he would have had if he had not been absent. Public Law , approved Refunds of Veterans' Insurance Premiums H. R. 9369: This measure authorizes the Veterans Ad- ministration to refund approximately $1,- 642,000 to veterans from whom improper collections for insurance premiunis had been made under the Soldiers' and Sailors' Relief Act of 19.40. Public Law 85-586,- approved August 1, �1958. Transportation Expenses of Certain Survivors of Deceased Servicemen H. R. 9721: Provides for the payment of transporta- tion expenses of certain survivors of de- ceased -servicemen to attend group burials in national cemeteries. Public Law , approved ' Blind Veterans H. R. 10461: � Increases monthly compensation fOr vet- erans who have suffered blindness in both eyes and have Only light perception, from $309 to $359.- " Public Law 85-652, approved August 14, 1958. Veterans H. R. 11382: This measure authorizes the conversion or exchange of life insurance issued to vet- erans who served between April 29, 1951, through December 31, 1956. The options available are (1) maintaining the present term policy; (2) exchange of present policy for a limited convertible term policy with lower premiums; and (3) convert to a per- manent-type policy. The measure further provides that upon application within 1 year after the effective date of the act, insurance under the National Service Life Insurance Act of 1940 may be _granted to individuals serving between Octo- ber 8, 1940, and April 24, 1951. Public Law approved National Service Life Insurance Benefits H. R. 11577: Authorizes an increase in the monthly pay- ments under total cysability provisions of national service life insurance of $5 per-each $1,000 of insurance. Public Law 85-678, approved August 18, 1958. Veterans' Burial Allowances H. R. 11801: Increases the burial allowance for deceased veterans from $150 to $250. Public Law 85-674, approved August 18, 1958. AUTHORIZATION FOR INSERTIONS IN RECORD FOLLOWING AD- JOURNMENT Mr. JOHNSON of Texas. Mr. Presi- dent, I ask unanimous consent that Senators may be permitted to make in- sertions-in the RECORD following the ad- journment of Congress until the last edition authorized by the Joint Commit-, tee on Printing is published; but this order shall not apply to any subject mat- ter which may have occurred or to any speech delivered subsequent to the ad- journment of Congress. The PRESIDING OFFICER. Without objection, it is so ordered. AUTHORIZATION FOR SECRETARY OF THE SENATE TO RECEIVE MES- SAGES FROM THE HOUSE OF REPRESENTATIVES AFTER SINE DIE ADJOURNMENT Mr. JOHNSON of Texas. Mr. Presi- dent, I send to the desk an order: and ask for its consideration. - The PRESIDING OFFICEk. The clerk will read the proposed order. The Chief Clerk read as follows: -Ordered, That notwithstanding the final adjournment of the present session of the Congress, the Secretary be, and he is hereby, authorized to receive messages from the House of Representatives after the sine die adjournment. - Mr. DOUGLAS. Mr. President, re- serving the right to object, I ask my distinguished and able majority leader whether this is tantamount to an ad- journment of Congress? Mr. JOHNSON of Texas. No; ob- viously not. Mr. DOUGLAS. /s it another indica- tion that coming events are casting their shadow before them? Mr. JOHNSON of Texas. Mr. Presi- dent, I am about to send another pro- posed order to the desk. The PRESIDING OFFICER. Is there objection to the order? The Chair hears none, and the order is entered. AUTHORIZATION FOR PRESIDENT � OF THE SENATE TO MAKE AP- POINTMENTS On motion of Mr. JOHNSON of Texas, and by unanimous consent, it was Ordered, That notWithstanding the final adjournment of the present session of the Congress, the President of the Senate be, and he is hereby, authorized to make ap- pointments to commissions or committees authorized by law, by concurrent action of the two Houses, or by order of the Senate. (The Senate proceedings of today will be continued in the next issue of the RECORD.) Declassified and Approved For Release @ 50-Yr 2014/05/01 : CIA-RDP63T00245R000400220003-3 �