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October 22, 1963
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Approved For / DP 3R000500040029-0 mission of genetic information ought to come the insights necessary for the solution of such problems as cancer, birth defects, and viral diseases. Altogether, molecular biology ought, in my opinion, to receive as much public support as can possibly be pumped into it; since money is not limiting its growth, many more post-graduate stu- dents and research fellows in molecular bi- ology ought to be subsidized so that the at- tack on this frontier can be expanded as rapidly as possible. The second field is high-energy physics. The field of endeavor originally sought as its major task to understand the nuclear force. In this it has been only modestly successful; Instead, it has opened an un- dreamed-of subnuclear world of strange par- ticles and hyperons, a world in which mir- ror images are often reversed. The field has no end of interesting things to do, it knows how to do them, and its people are the best. Yet I would be bold enough to argue that, at least by the criteria which I have set forth-relevance to the sciences in which it is embedded, relevance to human affairs, and relevance to technology-high-energy phy- sics rates poorly. The nuclear forces are not being worked on very directly-the world of of subnuclear particles seems to be remote from the rest of the physical sciences. Aside from the brilliant resolution of the r-parti- cle paradox, which led to the overthrow of the conservation of parity, and the studies of mesic atoms (the latter of which is not done at ultra-high energy), I know of few discoveries in ultra-high-energy physics whic_i bear strongly on the rest of science. (This view would have to be altered if ma- chines such as the Argonne Zero Gradient Synchrotron were exploited as very strong, pulsed sources of neutrons for study of neu- tron cross sections.) As for its bearing on human welfare and on technology, I believe it is essentially nil. These two low grades would not bother me if high-energy physics were cheap. But it is terribly expensive- not so much in money as in highly qualified people, especially those brilliant talents who could contribute so ably to other fields which contribute much more to the rest of science and to humanity than does high- energy physics. On the other hand, if high- energy physics could be made a vehicle for international cooperation-if the much-dis- cussed intercontinental 1,000 Bev accelera- tor could indeed be built as a joint enterprise between East and West-the expense of high- energy physics would become a virtue, and the enterprise would receive a higher grade in social merit than I would now be willing to assign to it. Third is nuclear energy. This being largely an applied effort, it is very relevant to human welfare. We now realize that in the residual uranium and thorium of the earth's crust, mankind has an unlimited store of energy-enough to last for millions of years; and with an effort of only one-tenth of our manned-space effort we could, within 10 or 15 years, develop. the reactors which would tap this resource. Only rarely do we see ways of permanently satisfying one of man's major needs-in this case energy. In high- conversion-ratio nuclear reactors we have such means, and we are close to their achievement. Moreover, we begin to see ways of applying very large reactors of this type to realize another great end, the eco- nomic desalination of the ocean. Thus, the time is very ripe for exploitation. Nuclear energy rates so highly in the categories of technical and social merit and timeliness that I believe it deserves strong support, even if it gets very low marks in the other two categories-its personnel and its relationship to the rest of science. Suffice it to say that in my opinion the scientific workers in the field of nuclear energy are good and that nuclear energy in its basic aspects has vast ramifications in other scientific fields. Next on the list are the behavioral scien- ces-psychology, sociology, anthropology, economics. The workers are of high quality; the sciences are significantly related to each other, they are deeply ,germane to every aspect of human existence. In these re- spects the sciences deserve strong public sup- port. On the other hand, it is not clear to me that the behavioral scientists, on the whole, see clearly how to attack the im- portant problems of their sciences. Fortu- nately, the total sum involved in behavioral science reseach is now relatively tiny-as it well must be when what are lacking are deeply fruitful, and generally accepted, points of departure. Finally, I come to manned-space explora- tion. The personnel in the program are competent and dedicated. With respect to ripeness for exploitation, the situation seems to me somewhat unclear. Our "hardware" is in good shape, and we can expect it to get better-bigger and more reliable boosters, better communication systems, etc. What is not clear is the human being's tolerance of the space environment. I do not believe that either the hazards of radiation or of weightlessness are sufficiently explored yet positively to guarantee success in our future manned-space ventures. The main objection to spending so much manpower, not to say money, on manned- space exploration is its remoteness from human affairs, not to say the rest of science. In this respect space (the exploration of very large distances) and high-energy physics (the exploration of very small distances) are similar, though high-energy physics has the advantage of greater scientific validity. There are some who argue that the great adventure of man into space is not to be judged as science, but rather as a quasi- scientific enterprise, justified on the same grounds as those on which we justify other nonscientific national efforts. The weakness of this argument is that space requires many, many scientists and engineers, and these are badly needed for such matters as clarify- ing our civilian defense posture or, for that matter, working out the technical details of arms control and foreign aid. If space is ruled to be nonscientific, then it must be balanced against other nonscientific expendi- tures like highways, schools, or civil de- fense. If we do space research because of prestige, then we should ask whether we get more prestige from a man on the moon than from successful control of waterlogging problem in Pakistan's Indus Valley Basin. If we do space research because of its military implications, we ought to say so-and per- haps the military justification, at least for developing big boosters, is plausible, as the Soviet experience with rockets makes clear. ix The main weight of my argument is that the most valid criteria for assessing scientific fields come from without rather than from within the scientific discipline that is being rated. This does not mean that only those scientific fields deserve priority that have high technical merit or high social merit. Scientific merit is as important as the other two criteria, but, as I have argued, scientific merit must be judged from the vantage point of the scientific fields in which each field is embedded rather than from that of the field itself. If we support science in order to maximise our knowledge of the world around us, then we must give the highest priority to those scientific endeavors that have the most bearing on the rest of science. The rather extreme view which I have taken presents difficulties in practice. The main trouble is that the bearing that one science has on another science so often is not appreciated until long after the original discoveries have been made. Who was wise enough, at the time Purcell and Bloch first discovered nuclear magnetic resonance, to 18999 guess that the method would become an im- portant analytical tool in biochemistry? Or how could one have guessed that Hahn and Strassmann's radiochemical studies would have led to nuclear energy? And indeed, my colleagues in high-energy physics predict that what we learn about the world of strange particles will in an as yet undiscerni- ble way teach us much about the rest of physics, not merely much about strange particles. They beg only for time to prove their point. To this argument I say first that choices are always hard. It would be far simpler if the problem of scientific choice could be ignored, and possibly in some future millen- nium it can be. But there is also a more constructive response. The necessity for scientific choice arises in "big science," not in "little science." Just as our society sup- ports artists and musicians on a small scale, so I have no objection to-in fact, I strongly favor-our society supporting science that rates zero on all the external criteria, pro- vided it rates well on the internal criteria (ripeness and competence) and provided it is carried on a relatively small scale. It is only when science really does make serious de- mands on the resources of our society-when it becomes "big science"-that the question of choice really arises. At the present time, with our society faced with so much unfinished and very pressing business, science can hardly be considered its major business. For scientists as a class to imply that science can, at this stage in human development, be made the main busi- ness of humanity is irresponsible-and, from the scientist's point of view, highly danger- ous. It is quite conceivable that our society will tire of devoting so much of its wealth to science, especially if the implied promises held out when big projects are launched do not materialize in anything very useful. I shudder to think what would happen to science in general if our manned space ven- ture turned out to be a major failure, if it turned out, for example, that man could not withstand the reentry deceleration forces after a long sojourn in space. It is as much out of a prudent concern for their own sur- vival, as for any loftier motive, that scientists must acquire the habit of scrutinizing what they do from a broader point of view than has been their custom. To do less could cause a popular reaction which would greatly damage mankind's most remarkable intellec- tual attainment-modern science-and the scientists who created it and must carry it "N4RITED RK1SES (Mr. UDALL asked and was given per- mission to address the House for 1 min- ute to revise and extend his remarks, and include two editorials.) Mr. UDALL. Mr. Speaker, part of the folklore of American politics is that edi- tors and constituents will uniformly rise up in indignation at any suggestion of salary increases for public officials, espe- cially Members of Congress. I do not be- lieve it. Salary legislation is like any legisla- tion which costs money. It must be clearly necessary and fair. If it is not, it cannot be defended. If it is proper and necessary, reasonable people will support it. Too often we in the Congress sell the American people short. We imply by our hesitancy to support good causes that our constituents will be unreasonable, that they will punish us for doing what is right. This is sheer nonsense. I have enough faith in the commonsense and Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For RC8R&RJ QI"~TOAL IECORD6B IIDUSROO0500040029-0 October 22 judgment of the American people to be- lieve they will support any legislation that is necessary and fair. Recently my colleague, the gentleman from Virginia [Mr. BROYHILL], and 1in- troduced legislation to provide salary increases for all levels of the Federal civilian service, including Members of Congress, the Cabinet, top level civil servants, the judiciary, the classified service. and the postal field service. I am happy to say that, contrary to the pessimism and fears of some advocates, support for this legislation is coming in from far and near. For example, the American Bar Association has given the proposal a ringing endorsement, and its national magazine will have a major article in support of Federal pay raises next month. The National Civil Service League has given the legislation Its sup- port. And a great many other groups and organizations are making themselves heard on the need for these long-overdue pay adjustments. Mr. Speaker, colleagues have brought to my attention two newspaper editorials published in their own districts in recent days which strongly support this legisla- tion. Under unanimous consent. I in- clude them with my remarks at this point in the RECORD: [From the Trenton (N.J.) Evening Times, Oct. 16, 19631 MERrrED RAISES Searching inquiry by disinterested, non- partisan groups Into the sagging levels of Federal salaries has resulted in an lne:capa- ble determination. This is it: judicial and congressional pay scales have for a long time been grossly in- adequate. As compared with what men In private enterprise receive, men with comparable talent and responsibilities, they are far out of line. They have even lagged behind ad- justments granted most officials and em- ployees of the Federal service. Those in the classified positions have re- ceived boosts, and now the members of the Armed Forces have had their pay reasonably increased. There are inequity in the other depart- ments. The low salary rates tend to limit these positions to persona of independent wealth or outside earnings. Federal judges cannot practice privately, and their accept- ance of positions In the U.S. judiciary rep- resents a sacrifice. A district judge, for instance, earns $22,- 500, the same as Congressmen. An example of disproportion exists In Pennsylvania, where State court judges in many cases re- ceive $5,000 a year more than the chief judge and the other judges of the U.S. Court of Appeals. Naturally, all of us are aware of the urgency of decreasing the expenditures of the Federal Government. However, the coat of any increase In judicial and congressional pay which any responsible source would recommend would be nominal when com- pared with the advancement of the public interest which would be served. Some of the most important cases in re- cent legal history have been decided In U.B. District Court here. Giant corporations rep- resented by the most expensive lawyers In the land have pleaded their causes. Sitting in judgment, Ironically, is a man whose salary is a fraction of the fees paid the bat- tery of counsels that face him and must abide by his rulings. The American Bar Association has over- whelmingly supported Federal judicial raises. The President's own pay panel has recoi a- mended them. Members of Congress are naturally reluc- tant to raise their own pay, being fearful of the reaction at home. They should art be so coy. They spend more money for me re purposes than any body of men on ti Is planet. Commonsense demands that they devote a tiny fraction of their appropri s- tlons to making the top jobs of statecraft i i- viting to the persons best fitted to hcid uh,tul. [From the Michigan City News-Dispatca, Oct. 2. 19831 PAY RALSES NEEDED Businessmen know that few things cc it them more than bad managers. Ineptitwie or stupidity at the top inevitably multipli is as it filters down through management leve s, creating great waste. At least one businessman believes the same thing holds true in government-and hp's trying to do something about it. Clarence Randall. retired steel executh e, headed a presidential advisory panel whit h made a penetrating study of federal salaric S. in August the panel submitted its repo 't and recommendations, Randall has ca ,- soled its essence In one succinct paragrapl.: 'Never has our Federal Government lu d greater need for able men in posts of execu- tive, legislative and judicial responsibility. Yet we are asking our Federal officials o accept these responsibilities at salaries mu( h less than they can obtain elsewhere and mut h less than the level that would make it po t- sibte for them to serve the Government." F ,ergetic and outspoken. Randall did n it conclude his mission with submission of ti e panel's report. He has since crusaded vii:- orously for congressional approval of I s recommendations. Specifically, the panel would boost Cal.- tnet salaries from $25,000 to $50,000. Supren e Court Justices from $35.000 to $60.000 at d Members of Congress from $22.600 to $35,00) ' Comparable salary Increases are recon - mended for other top Federal executive i, such as assistant secretaries and bures a chiefs. Says Randall: "Without adjustment at the top, executiv' s In key Federal positions ? ? cannot rt - ceive realistic compensation for their impo. - tent work. Their part In the successfi.l conduct of Government cannot be overen - phasized. Their responsibilities general y equal those of a top corporation executive " Randall dramatizes existing Inequities wit a two revealing examples: 1. In one western city, 28 top executives are paid more than Federal Cabinet member e ? ? ? and the comptroller of one souther I State gets more pay than the U.S. Secretary of the Treasury. 2. Mayors and managers of at least I t cities get as much salary as Cabinet member;. Randall, who well knows the cost of Ir - tenor management In business, says bluntly : "Tt Is poor economy to make it Impossib s to obtain the best available top managemer t for programs that cost the taxpayer hur - dreds of millions of dollars. Seen as a ques- tion of good business judgment, the preser t salary practices of Government cannot b.- justified. "Now Is the time to overhaul our (Fed- eral l ? ? ? pay structures. The cost :s small-less than the going price of one des troyer escort vessel. We should make th i Investment required to provide ? ? ? th i ablest executives, judges and legislators our society can produce. Randall Is right-but without widesprea I public understanding and support his sepal , his proposals may languish. Congress prob ably won't get to them until 1984, a bi , election year when salary raises migh; alienate uninformed voters. VOLUNTARY ACCOMMODATIONS ACT (Mr. BENNETT of Florida asked and was given permission to address the House for 1 minute, to revise and extend his remarks, and to include extrareous matter.) Mr. BENNETT of Florida. Mr. Speak- er, I have today introduced a bill in the House of Representatives to provide a voluntary solution to the problem of Ne- gro travelers in finding adequate motel, restaurant, and other facilities on the Nation's highways. The voluntary accommodations leg- islation would make possible low interest rate loans for the construction of such facilities for members of the Negro race. This legislation would complement and support the freedom of association constitutional amendment which 1 in- troduced several weeks ago. This con- stitutional amendment would preserve the right of freedom of association in private business, housing, and educa- tional institutions. A Negro traveling some of the ligh- ways in America has difficulty in finding adequate accommodations for himself and his family. I believe it is uncon- stitutional to force private business to accept persons whom the property own- ers do not wish to accept or serve. These points were strongly presented in the recent hearings on the proposed pub- lic accommodations section of the civil rights legislation now before the Con- gress. This Voluntary Accommodations Act, which would assure adequate housing, motel, hotel, and eating accommodations for all people in the United States, would do away with the atmosphere of appre- hension or ill will now prevalent in many parts of the country. A Negro could have the assurance of a safe and sound night's sleep, and there would be no need for the compulsive, and probably uncon- stitutional legislation introduced by ad- ministration leaders. There is nothing new to my approach to help solve this pressing social prob- lem in America. The first speech I made on the floor of the House of Representatives 15 years ago was in support of legislation to pro- vide funds for construction of schools on the basis of population in the schools attributable to Negroes and Indians. This bill, along with the one I have in- troduced today, has nothing to do with segregation or integration. It is long overdue. There is great fear throughout the country that the administration's pro- posal for public accommodations would force many private businesses out of business. I believe the answer to the problem is this Voluntary Accomnlcda- tions Act. The bill follows: H.R. 8881 A bill for voluntary accommodations, to as- sure the provision of decent, safe, and sani- tary housing and adequate motel, hotel, and eating accommodations for all Ameri- cans Be it enacted by the Senate and House of Representatives of the United States of America In Congress assembled, That this Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved FerONG gSJa(gff/ ft DP 03R000500040029-0 19001 Act may be cited as the "Voluntary Accom- modations Act". SEC. 2. The Congress hereby finds that in many areas of the United States additional decent, safe, and sanitary housing and more motel, hotel, and eating accommodations are needed that will be made available to Negroes, and that they are not being pro- vided either with or without the assistance of existing Federal housing or other pro- grams. SEC. 3. In order to assure the provision of adequate housing and motel, hotel, and eating accommodations for all the people in the United States, the Housing and Home Finance Administrator Is authorized to make and to enter into commitments to make loans for- (1) the purchase or construction of dwell- ings to be owned and occupied by the bor- rowers as their homes; (2) the repair, alteration, or improvement of dwellings owned or to be owned and oc- cupied by the borrowers; (3) the construction or repair and reha- bilitation of multifamily housing projects and related facilities; and (4) the construction or repair and re- habilitation of motel or hotel accommoda- tions and related facilities, and eating ac- commodations. SEC. 4. Assistance provided under this Act shall be subject to the following conditions: (a) The Administrator shall find, before making a loan, or a commitment to make a loan, that in the area in which the housing or accommodations are or are to be located more decent, safe, and sanitary housing, or more motel, hotel, and eating accommoda- tions, as the case may be, are needed to assure their availability to Negroes, and that the housing or accommodations cannot be provided with the assistance of any other Federal housing or other program, or by any other reasonable method. (b) The Administrator shall determine that the applicant for a loan is a satisfactory credit risk. (c) In the case of an applicant for a loan pursuant to paragraph (3) or (4) of section 3 the applicant shall agree that it will provide the type of housing or accommodation that is needed, and that during the time any part of the loan remains unpaid the bor- rower will be regulated or restricted by the Administrator as to rents or sales, charges, capital structure, rate of return, and meth- ods of operation to such extent and in such manner as the Administrator determines will provide reasonable rentals and charges and amortization of the project or accommoda- tions. (d) The amount of a loan made pursuant to- (1) Paragraph (1) of section 3 may not ex- ceed $10,000 or the value of the property in- cluding the land; (2) Paragraph (2) of section 3 may not ex- ceed $5,000 or the sum of the estimated cost of repair and rehabilitation and the Admin- istrator's estimate of the value of the prop- erty (including the land) before repair and rehabilitation; (3) Paragraph (3) or (4) of section 3, may not exceed $100,000 or the estimated value of the property (including the land and necesary site improvement) when con- (f) A loan shall bear interest at 3 per centum per annum on the amoifnt of the principal obligation outstanding at any one time, except that the interest rate may be increased to not more than 8 per centum if, with the approval of the Administrator, an obligor other than the original borrower as- sumes the obligation of repayment of the loan or any outstanding balance of the loan. (g) A loan shall be subject to such terms and conditions as may be imposed by the Administrator to carry out the purposes of this Act, including agreement by the borrow- er that without the approval of the Adminis- trator (1) the property purchased, con- structed, or rehabilitated with assistance of the loan will not be sold, and (2) no person other than the original mortgagor will assume payment of the mortgage given to secure the loan. (h) The housing and accommodations as- sisted under paragraphs (3) and (4) of sec- tion will be made available to Negroes. SEC. 5. There are authorized to be appro- priated such sums as may be necessary to constitute a revolving fund for use by the Administrator in carrying out this Act. SEC. 6. The Administrator shall take such action as may be necessary to insure that all laborers and mechanics employed by con- tractors and subcontractors in the construc- tion, repair, or rehabilitation of housing and accommodations assisted under this Act shall be paid wages at rates not less than those prevailing in the locality involved- for the corresponding classes of laborers and me- chanics employed on construction of a simi- lar character, as determined by the Secretary of Labor in accordance with the Act of March 3, 1931, as amended (the Davis-Bacon Act); but the Administrator may waive the appli- cation of this section in cases or classes of cases where laborers or mechanics, not other- wise employed at any time in the construc- tion of such housing or accommodations, voluntarily donate their services without full compensation for the purpose of lowering the costs of construction and the Administrator determines that any amounts saved thereby are fully credited to the borrower undertak- ing the construction, repair, and rehabilita- tion. SEC. 7. In the performance of, and with respect to, the functions, powers, and duties vested in him by this Act the Administrator shall (in addition to any authority otherwise vested in him) have the administrative and fiscal functions, powers, and duties which are necessary or appropriate to enable him to carry out this Act, as set forth in section 402 (except subsection (c) (2)) of the Housing Act of 1950. The Administrator may utilize the facilities and services of any other Fed- eral department or agency and may delegate the performance of any of his functions, ex- cept the making of regulations, to any officer or employee of any other Federal department or agency. Any such utilization or delega- tion shall be pursuant to proper agreement with the Federal department or agency con- cerned, and payment to cover the cost thereof shall be made either in advance or by way of reimbursement, as may be provided in the agreement. SEC. 8. As used in this Act, the term struction is completed in the case of new of Puerto Rico, and the possessions of the to a much improved business position if construction, or, in the case of repair and I United States. the General Dynamics firm won the TFX rehabilitation, the estimated cost of repair and rehabilitation and the Administrator's estimate of the value of the property (in- cluding the land and necessary site improve- ment) before repair and rehabilitation. (e) A loan shall be secured by a mortgage which shall provide for complete amortiza- tion by periodic payments within such term up to 40 years as may be prescribed by the Administrator, except that the term of a loan made under paragraph (4) of section 3 may not exceed 25 years. NAVY SECRETARY FRED KORTH (Mr. GROSS asked and was given permission to address the House for 1 minute and to revise and extend his re- marks.) Mr. GROSS. Mr. Speaker, I wish to call the attention of the House to the following articles that are of some sig- nificance in the conflict-of-interest role of Navy Secretary Fred Korth. The articles are: The story by Cecil Holland, of the Washington Star, appearing October 20, 1963, dealing with the Korth correspond- ence on Navy Department stationery to promote the business of his bank. It also includes Korth's claim that he was not asked to resign. The story by Max Frankel, of the New York Times, appearing October 20, 1963, dealing with the reports that Korth was forced to resign. It also dealt with Korth's use of the Navy yacht the Se- quoia, for the entertainment of officials of his bank and the extra good cus- tomers of Korth's Continental National Bank in Fort Worth. The story by Clark Mollenhoff, of the Des Moines Register and Tribune and Minneapolis Star and Tribune, appear- ing October 20, 1963, dealing with the part a high General Dynamics official- Mr. Frank Pace-played in steering an insurance deal to Korth that netted Korth stock worth a quarter of a mil- lion dollars. The report states that Korth admitted he did not have to risk a penny of his own money to make this huge profit. The article in the October 25, 1963, issue of Time magazine which states that Defense Secretary Robert McNamara advised President Kennedy to demand the resignation of Korth; that on Oc- tober 11, 1963, Korth had breakfast with McNamara and that same afternoon the Navy Secretary personally handed in his resignation at the White House. The White House made the resignation pub- lic on October 14, 1963, "but did not," said Time, "reveal that Korth had, in fact been fired." Put the facts in those stories together with the McClellan Investigating Sub- committee record, and see what you have. Korth approved a $400,000 loan for General Dynamics in the months just prior to becoming Navy Secretary. Al- though he resigned as president of the bank, he retained 160,000 shares of stock. Now we see that Korth continued to steer clients to his bank, wrote letters on Navy stationery to promote the bank's business, and entertained the bank's ex- tra good customers on the Navy yacht Sequoia. Now, we see that Korth had good reason to be grateful to many high of- ficials of General Dynamics, because of the deposits of from $100,000 to $500,000 that General Dynamics carried with the Continental National Bank of Fort Worth. We see that officials of the Con- tinental National Bank looked forward to have General Dynamics win the award. In the face of all those facts, Fred Korth did not disqualify himself on the TFX contract. He took part and over- ruled the judgment of the top military officers and civilian technical experts who felt the contract should be to Boeing. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1 9002 Approved For R MV I SSIC~l~ I I - F P66B00 303SE000500040029-0 October 22 Korth should have been fired for not disqualifying himself in the TFX award. The more facts we learn, the more it becomes clear that there was a conflict of interest. His TFX role was grounds for firing him. His activity in this insurance deal, in which he voted approval of the trans- actions with Ben Jack Cage should have been grounds for firing him. Korth's correspondence on Navy sta- tionery to promote his bank's business was grounds for firing him. If the Justice Department did not clear Korth, then the Attorney General should state that this is so in a loud and clear voice, and let it be known that Korth was wrong and his pattern of activity will not be tolerated. The pattern of coverup we have been treated to in the Korth affair does not stimulate the belief that there is a proper atmosphere to promote honest govern- ment. First. The atomic carrier story was a phoney "cover story" to mislead the pub- lic on the reason for Korth's resignation. Second. We were told that Korth's resignation had nothing to do with TFX. This was someone's cute and clever way of misleading the public into believing that the McClellan Investigating Sub- committee's work had nothing to do with Korth's resignation. Now it is becoming clear that the letters uncovered by the McClellan staff were at the bottom of the forced resignation. Even this is an effort to avoid admission that Korth's conflict of interest in involved, for that might contaminate the whole TFX con- tract and force reconsideration. Third. Korth now says that no one asked him to resign. This is another bit of wording that is intended to mislead the press and the public into believing that top officials of the Kennedy admin- istration have absolved Korth of wrong- doing. I do not think he would be re- signing if the top officials were so con- vinced he was not at least indiscreet. It is time for the administration to end this doubletalk and this coverup. It is time to quit shielding Korth and others involved in the mismanagement and the misdoings in the TFX warplane contract. It is time for the President to take a forthright stand for strong steps to clean up this TFX mess. THE BUCKET ARGUMENT (Mr. HALL asked and was given per- mission to address the House for 1 min- ute and to revise and extend his re- marks and include an editorial.) Mr. HALL. Mr. Speaker, Members of the House will recall that I did my ut- most during the recent debate on the foreign aid authorization bill to attach an amendment which would limit our contributions to United Nations Assist- ant Agencies to not more than 33 i,1 of the total budgets of those agencies. This is the same limitation now applicable by law to the Federal United Nations Budget and our contributions thereto. The Wall Street Journal reports that the United Nations Special Fund now seeks a $28 million boost in its budget for 1964. This would be more than a third greater than the 1963 budget ar d we already contribute 40 percent of ti e United Nations Special Funds budget. It appears that while we are finaly tightening up our foreign aid budget, we are losing our savings through tt e back door to the United Nations aid program. I urge the Members of ti e House to read the following editori..i from the Wall Street Journal. THE BucxL-r AaGUKEri'r The United Nations Special Fund, an on - fit that provides technical assistance to ui - derdeveloped nations. Is seeking a $28 millic a boost in its budget for 1984. In case anyone thinks this a bit steep- - It would be up more th:nn a third from 1963- - the Fund's managing director, Paul G. Hof - man. Implies that It's a drop in the bucks t compared with the $120 billion U.N. membe. s will spend on defense this year. A number of questions can be raised abot t this whole Special Fund undertaking, or e t least the heavy U.S. support of It. Tie United States, after all, runs an extreme.y expensive foreign aid program of Its owii. And some of the U.N. Special Fund money has gone to peculiar places like Communie t Cuba- Apnrt from all that, what interests us s this drop-in-the-bucket argument, which a getting so familiar In so many areas. w e are constantly told, for example, that the outlay for books or concerts or whateve r Is only a drop In the bucket compared wit i national spending on liquor and clgaret ?, Just as though there were some relevar t connection. Or that the Government foreign aid pre - gram is only a drop In the total budge . Or, for an intriguing variation, that tha public debt, which is rapidly rising, is actu- ally getting smaller as a percentage of gross national product or something. Or, for t further variation. that a particular pork- barrel project costs hardly anything-th s first year, that is. Somehow the bucket-arguers never seer i to reflect on the obvious: That all thos s drops quickly became raging oceans of spend trig and, in the cases of the United State i and the U.N., red ink. CUBA The SPEAKER pro tempore (Mi, LISOISATI). Under previous order o' the House, the gentleman from Mon tan., 1 Mr. BATTINI is recognized for 1 hour. (Mr. BATTIN asked and was givei permission to revise and extend his re marks.) Mr. BATTIN. Mr. Speaker, today I; an anniversary-the anniversary of th,! President's address to the Nation an nouncing that there were indeed missilt' sites in Cuba. In this speech the Presi dent announced his intention to impost' a partial blockade-which he called i. quarantine-to prevent the arrival o' further offensive military equipment it - Cuba. Last Saturday. recalling the events o' the crisis of October 1982, the Presiden . declared that the outcome of that crisp; could not be considered either "a vic- tory in the usual military sense" or a de feat. He left the Nation in considerable doubt as to Just what the outcome shoulc be considered. The results are indeed difficult to as sess. If one does not limit himself to the events of the week of October 22 1962, but looks at these events in the broader context of the events that pre- ceded and the events that followed the week of the missile crisis, one is to a better position to judge whether the So- viet Union or the United States obtained a net advantage. In this larger context, the Soviet Union has scored a victory by establishing in this hemisphere a sub- stantial military base, whether that base is at present equipped with missiles or not. Khrushchev has sucessfully defied the historic policy of the United States, the Monroe Doctrine, by political and military intervention in this hemisphere. Khrushchev has done- what Adolph Hit- ler was forbidden to do by Franklin D. Roosevelt-Khrushchev has done what no foreign power was permitted to c'.o in the past 100 years. The massive Soviet military buildup began in the summer of 1962. This fact has been admitted by the administration itself. In a statement of the Special Committee on Communist Subversion of the OAS-a committee which included the former American Ambassador to the Organization, Mr. deLesseps S. Morri- son, we read: The military intervention of the Soviet Union in this hemisphere began to assume Important proportions with the arrival In Cuba, in the middle of July 1962, of large shipments of Soviet war materials and mili- tary personnel. This fact Introduced a new and dangerous element Into the extraconti- nental intervention, which until then had primarily consisted of political and economic penetration. A formidable military force exists in Cuba today, and as long as that force is there it is idle to deny that Khrushchev has scored a victory. Let us look at the other aspects of the missile crisis. The President declared in his speech of October 22, 1962: Our goal is not the victory of might, but the vindication of right-not. peace at the ex- pense of freedom, but both peace and free- dom, here in this hemisphere, and, we hope, around the world. God willing, that goal will be achieved. It is quite obvious that we have not achieved the goal which the President laid down-freedom has not been brought to Cuba. Using the standard that the President himself laid down in his speech I year ago, again we are forced to con- clude that the outcome of the missile crisis was not victory for the United States. Again in his speech 1 year ago, the President called for "the prompt dis- mantling and withdrawal of all offensive weapons in Cuba, under the supervision of U.N. observers, before the quarantine can be lifted." In his correspondence with Khrushchev the President insisted on some form of onsite inspection, but the quarantine was lifted without secur- ing the inspection which the President had told the world he was demanding. This retreat cannot be considered a vic- tory for the United States. No one can be sure whether Soviet missiles remain in Cuba. The Senate Preparedness Subcommittee has said : Strategic weapons may or may not be now in Cuba. We can reach no conclusion on this because of the lack of conclusive evi- dence. Ironclad assurance of the complete ab- sence of Soviet strategic missiles in Cuba Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENATE 19831 Syracuse has: Modern hotels and motels with a total of 3,900 rooms; 2,600 retail estab- lishments with annual sales totaling over a half billion dollars; 850 wholesale and dis- tributor firms with annual sales totaling more than a billion dollars; 4 commercial banks with 52 area branch offices and de- posits totaling $605 million; 2 savings banks with 4 area branch offices and deposits total- ing $368 million; 4 savings and loan associa- tions with 3 area branch offices and deposits totaling $78 million; 2,500 farms with an- nual sales totaling $18 million; annual per- sonal income in excess of $740 million; 48 percent of local families earning over $7,000 annually; and almost 90 percent of area families have incomes of $4,000' or more per year. GREATER SYRACUSE-A DIVERSIFIED INDUSTRIAL COMPLEX Greater Syracuse is a rapidly growing in- dustrial complex, one of only 33 areas in the United States having operations in all 20 basic industrial classifications. A Fortune magazine listing of the 500 largest corpora- tions in the United States shows 98 with operations here-ranking Syracuse first in the Nation. The area along Syracuse's five exits on the New York State Thruway has- witnessed more new industrial growth than any area in the State-and continues to grow constantly. In addition, Syracuse Is one of northeastern America's major distribution centers. Industrial diversification (Nearly 000 manufacturing firms employing over 56,000 personal Number of firms SIC No. Onon- daga County Metro. politan area Food-------------------------- 135 Tobacco----------------------- 1 Textile mill products-__-_---_- 8 Apparel- ---------------------- 16 Lumber and wood products--- 42 Furniture and fixtures --------- 27 Paper and allied products-_--- 32 Printing and publishing--_____ 101 Chemicals and allied products- 33 Petroleum refining____________ 8 Rubber and plastics___________ 7 Leather_______________ 6 Stone, clay, glass-------------- 34 Primary metal________________ 37 Fabricated metal______________ 8B Machinery (except electrical) -_ 120 Electrical machinery and equipment_ ________________ 18 Transportation equipment.-__ 14 Profession, scientific, control instruments----------------- 10 Miscellaneous manufacturing industries__________________ 24 MAJOR INDUSTRIAL FIRMS I A. E. Nettleton Co. Allied Chemical Corp., Solvay Process Division. Bristol Laboratories, Inc. Camillus Cutlery Co. Carrier Corp. Chrysler Corp., New Process Gear Division. Continental Can Co., Inc. Crouse-Hinds Co. Crucible Steel Co. of America Electric Autolite Co. Frazer & Jones Co. General Electric Co. General Motors Corp. Temstecl Division. Iroquois China Corp. Julius Resnick, Inc. Kilian Manufacturing Co. Lamson Corp. Learbury Clothes, Inc. Employing 200 persons or more. No. 176-4 Lennox Industries, Inc. Lipe-Rollway Corp. McMillan Book Co. Muench-Kreuter Candle Co. Murray Corp. of America, Easy Laundry Appliance Division. New York Bell Telephone Co. Niagara Mohawk Power Corp. Oberdorfor Foundries, Inc. O. M. Edwards, Inc. Onondaga Pottery Co. Pass & Seymour Co. Porter-Cable Machine Co. Precision Castings Co. R. E. Dietz Co. Rollway Bearing Co., Inc. Sylvania Electric Products, Inc. Syracuse Ornamental Co. U.S. Hoffman Machinery Corp. Western Electric Co. Will & Baumer Candle Co. Some products of Greater Syracuse: Elec- trical equipment, electronic equipment, tele- phone equipment, radio and television sets, pharmaceuticals, chemicals, air condition- ing, tool steel, roller bearings, soda ash, con- tainers, automotive equipment, agricultural implements, furniture, office equipment, machine shop products, foundry products, conveying equipment, chinaware and pottery, wax candles, clothing, shoes, handbags, and foods. Distribution of labor force Manufacturing--------------------- 56,700 Construction----------------------- 8,000. Transportation and communications_ 11, 000 Wholesaling and retailing ----------- 33, 500 Finance, insurance, real estate------ 6, 500 Government------------------------ 15,000 Services---------------------------- 17,600 Agriculture ------------------------ 4,000 Self-employed ----------------------- 12,600 Domestic--------------------------- 2, 500 TRANSPORTATION AND RESOURCES Located at the intersection of the 500-mile, east-west New York State Thruway (Inter- state Route 90) and the new north-south Penn-Can Highway (Interstate Route 81). Both routes interconnect with the Nation's other major superhighways. Syracuse is one of only eight cities in the United States located at the crossing point of two major superhighways, making it one of the fastest- growing distribution centers In the Nation. Syracuse is served by 124 motor freight carriers with major terminals. There is also direct bus service in all directions. One of the largest railroad marshaling yards in the world is located here, the New York Central Dewitt classification yard. Syracuse is a major terminal on the 522- mile Barge Canal System, which links the Atlantic and Great Lakes and handles over 2,400,000 tons of cargo per year. Hancock Field, one of the most modern airports In the Nation, is served by Eastern, Mohawk, and American Airlines. There are an average of 70 flights daily, handling over 565,000 passengers and 1,640 tons of cargo per year. It is also the home of the U.S. Air Force's 26th Air Division, the original SAGE Command. Water is presently supplied by Skaneateles and Otisco Lakes, two of the purest bodies of water in North America. Daily capacity is approximately 66 million gallons. In addi- tion, unlimited sources of water will be tapped for all future needs. Currently ap- proved plans call for construction of trans- mission and storage facilities to provide up to 62,500,000 additional gallons of water per day. Electric power and natural gas service are provided by the Niagara Mohawk Power Corp. The utility is also engaged in a re- search and development program for future use of atomic power. The Niagara Mohawk system has 81 hydroelectric and 5 steam- electric generating stations, and a total ca- pacity of 4,569,000 kilowatts. Principal trans- mission routes for this power intersect at Syracuse, where the Niagara Mohawk system power control center is located. OF 1963-AMENDMENT (AMEND- MENT NO. 283) Mr. ROBERTSON. Mr. President, I ask unanimous consent that I may yield to the Senator from Delaware [Mr. WIL- LIAMS] for 3 minutes, without losing my right to the floor. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. WILLIAMS of Delaware. Mr. President, on Wednesday, October 29, the House committee approved H.R. 8986. This bill embraced the ;administration's suggestion that the salaries of the top executives of the Government, including Members of Congress, a increased by about 50 percent. In my-opinion, this suggestion is fiscally irresponsible, par- ticularly at a time when our deficit is running at the rate of around $1 billion per month, and there is no indication that spending is being reduced to bring it more into line. Under the administration's proposal, salaries of Cabinet members would be in- creased from $25,000 to $35,000. Salaries of members of the Supreme Court would be increased from $35,000 to $45,000. Salaries of Members of Congress would be increased from $22,500 to $32,500. Heads of other agencies, whose pres- ent salaries range from $12,000 to $20,- 000, would be increased proportionately, with these increases ranging from $5,000 to $8,000 a year. In my opinion, to approve such an in- crease in salaries of those top officials who are responsible for our present financial instability is an insult to the American taxpayers who will have to bear the burden. Surely no private company would give a 50-percent salary increase to its top executive officers and directors when the management had produced but six bal- anced budgets in the past 30 years. Therefore, I am today submitting an amendment to the bill now pending in the committee, and if the bill is later re- ported by the Senate Committee with- out this amendment it will be reoffered in the Senate. The purpose of this amendment is to postpone the effective date of any in- crease on any salary of $10,000 or over until the first day of the first month after the close of a fiscal year with a balanced budget. Surely no Frontiersman will object to this effective date since they are all now claiming that their heavy spending policies and large tax cuts will accelerate the economy to such an extent that it will soon give us not only a balanced budget but will solve all our other problems as well. The amendment reads as follows: At the appropriate place insert a new sec- tion as follows: Notwithstanding any other provisions of this bill the effective date of any increase on Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 19832 CONGRESSIONAL RECORD - SEDATE November 1 any salary of $10,000 or over, shall be the be $9 billion; and that the expectel The Federal Aviation Agency has his- first day of the first month after the close deficit for the fiscal year of 1965 begir- torical ties back to 1926 when the Air of a fiscal year with a balanced Federal budget. on July 1, 1964, will be $9.2 billioi Commerce Act created the Aeronautics It thus Is obvious that the aggregate Branch-later the Bureau of Air Com- The PRESIDING OFFICER. The deficits for the 5 years discussed wi I merce-in the Department of Commerce. amendment will be received, printed, and be $341, billion. Manifestly the del t The next major step was the Civil referred to the Committee on Post Office ceiling must be lifted. Our spending prc - Aeronautics Act of 1938 which created and Civil Service; and, without objec- grant is not based on revenues receive I the independent Civil Aeronautics Au- tion, the amendment will be printed in but on new debts incurred. thority. the RECORD. I want to provide a tax cut for tie World War II gave a tremendous im- The amendment (No. 283) was re- people of our country but I want to do t Pettis to aviation and the number of ferred to the Committee on Post Office on the basis of a rational and sound ar- pilots and planes, and the performance and Civil Service, as follows: proach which means a reduction Instea I of aircraft, including jet aircraft, in- At the appropriate place Insert a new sec- of an expansion of spending. creased enormously. tion as follows: Respecting the proposed salary raises As early as 1948 the President's Air "Notwithstanding any other provisions of of high echelon officials including th s Coordinating Committee warned that this bill the effective date of any increase on Senators and Representatives of the U1. the techniques and tools available for any salary of $10,000 or over, shall be the Congress, I will approve of it the momer t the control of air traffic were, at least, first day of the first month after the close of a fiscal year with a balanced Federal we achieve a balanced budget. marginal and It became increasingly budget." The amendment contemplates the ap- apparent that the CAA could not cope Mr. LAUSCHE. Mr. President, I ask proval of pay increases only on the dat! with the serious problem of our increas- unanimous consent that I may be added that it is established that our budget has ingly congested airspace. The ma;grrf- been balanced. tude of the problem was highlighted by as a cosponsor of the amendment sub- Mr. ROBERTSON. Mr. President, i the White House Aviation Facilities mitted by the distinguished Senator from ask unanimous consent that I may ytel I Study Group in 1955, and another step Delaware [Mr. WILLIAMS], which pro- to the Senator from Oklahoma [M:. forward was taken with the passage of vides that the contemplated pay In- MoNRoNsYl for 3 minutes without losin f the Airways Modernization Act of 1957. crease for Supreme Court, appellate, and my right to the floor. I am proud to have been the sponsor district court judges, and for members The PRESIDING OFFICER. Without: of the Federal Aviation Act of ?958 of commissions, and other employees of objection, it is so ordered. which repealed the Air Commerce Act the Federal Government, if passed, shall of 1926, the Civil Aeronautics Act of not go into effect until the first day after 1938, and the Airways Modernization Act it is disclosed that the budget has been FIFTH ANNIVERSARY OF THE FED - balanced. PRAT. AVTA of 1957, and, finally, established the Fed- T'rf3W Arnr'V e Mr. MONRONEY. Mr. President, the Today, the responsibilities and activi- sadlarytof $10 000 of the I present y rey Federal Aviation Agency today celebrates ties of the FAA go far beyond the Na-more ceived shall. become effective until the its fifth anniversary. I want to take this tion's borders. They encompass all the first day of the first month after the opportunity to congratulate the FAA fc r States and possessions and touch upon close of a fiscal year that shows a what it has achieved during Its first 5 the international areas in which our flag balanced Federal budget, years, and to wish It well for the yeas s carriers operate. ahead. After all, the achievements (f I welcome the Senator from Ohio as the FAA reflect in large part the achieve- I am happy to report that the Agency a cosponsor of the amendment. This has made significant steps forward in its could more or less be called an Incentive menu of America in the field of aviatiol , first 5 years in establishing and operating amendment, because it would involve The progress that has been made through the steady improvement in th an airways system that provides a safe thousands of employees, who would be safety, reliability, and efficiency of our environment for today's air travelers, working vigorously to eliminate waste In air transport is truly remarkable. and for the continued growth that is the Federal Government In order that All sure to come. the budget could be balanced, and there- Americans can b proud the fact I am proud. also, of the pionee: in that even with the faster and fast( r g by achieve their salary increase. speeds now offered air travelers by the which has been undertaken by FAA Mr. LAUSCHE. I appreciate the sth; wift to develop major economies courtesy of the Senator in giving me the crowded rei swept-wing airways ways and jets, and growing despite cangest to r by assuming functions of air traffic con- opportunity to become a cosponsor. around metropolitan air terminals, flyin I trol previously handled by military agen- Mr. DOMINICK. Mr. President, I ask is becoming safer than ever. Schedule I dies. Much additional effort will be re- unanimous consent that I too may be- passenger airlines in the United States quired to keep our airways safe as they come a cosponsor of the amendment. both domestic and international, hav, s become more crowded. I am confident The PRESIDING OFFICER. Without maintained a record of less than 1 fatal- that Congress will continue to respond objection, it Is so ordered. Ity per 100 million passenger miles for 1 t to the needs of this Agency on the Mr. LAUSCHE subsequently said: Mr. consecutive years. The 1960 rate was ground that money is better spent in President, the amendment of the Senator 0 .75, and this improved to 0.29 In 1961 saving lives and enhancing efficiency from Delaware [Mr. WILLIAMS 1 of which and 0.26 for 1962. That is equivalent 0 and reliability in aviation than in pay- I have become a cosponsor, in my opinion I fatality per 400 million miles of trave . Ing the claims resulting from air is sound, in the interest of the people If we do as well in the last 2 months (f disasters. of the country, and ought to be adopted. this year as we did in the first 10, 196) The Federal Aviation Agency is press- There are many reasons why the ex- will show further improvement. Fcr ing forward with research and deve_op- orbitant pay increases for those now some time now it has been safer to cross ment. This will make possible the instal- receiving in excess of $10.000 ought not the Nation by plane than In our ow 1 lation of the most efficient traffic control to be approved. One of the important automobile. and traffic safety equipment. This will reasons is that the increase in our deficit The FAA was born officially just 5 provide knowledge for adequate han- operations has made it imperative that years ago when a retired Air Force gen- dling of the human factors involved in the debt ceiling be lifted from the present eral with a distinguished record in avia - air safety. figure of $308 billion to $315 billion. tion, Elwood R. (Pete) Quesada, was The Agency has also taken the lead in The Secretary of the Treasury, Hon. sworn in as the first Administrator. Th a the very difficult program to provide a Douglas Dillon, recently testified before Agency began operations on December 3 , supersonic commercial air trans:-Iort the Senate Finance Committee headed 1958. plane so necessary to maintain the by Senator HARRY F. BYRD, that the ag- Najeeb E. Halaby, a former jet to t vitality and continued growth of the gregate deficits of the Federal Govern- pilot with a wealth of private and Gov- U.S. aviation manufacturing and avia- ment for the years of 1961, 1962, and eminent executive experience, was tion transport industries. This will be a 1963, were about $161/2 billion; that with named by President Kennedy as th! Joint effort of Government and private out the tax cut the deficit for the fiscal Agency's second Administrator on Janu- enterprise, based on a cost-sharing year of 1964 which began on July 1 will any 19, 1961. arrangement on the.part of the aircraft Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENATE 19029 I am, therefore, today introducing a bill to provide a 7-percent Federal in- come tax credit for State individual in- come-tax payments. In operation, this bill would provide that a taxpayer whose Federal income-tax liability was $100 would be entitled to reduce his payment to the Federal Government by $7, as- suming that he paid at least $7 in State income tax. What would this mean for such States, such as Oregon, which now have their backs to the wall? Immediately, since Oregon now has a relatively heavy in- come-tax structure, the Oregon taxpayer would benefit by the full 7-percent credit. Since Oregon's tax liability for 1960, the latest year for which figures are avail- able, was $383,156,000, the value of the credit to Oregon taxpayers would be a total of $26,820,920. This money would be freed, either to be taxed by the State, or, if the State should choose not to in- crease income rates, to serve as a tax re- duction to Oregon taxpayers. Second, the tax-credit legislation would induce States with minimal or no income-tax structures to adopt at least a minimum credit-absorbing personal in- come tax. This, in turn, would relieve the pressure on Oregon lawmakers to turn to a regressive sales or excise tax, in order to compete with neighboring States in attracting wealth and industry. The case for Federal income-tax credits was forcefully and succinctly put by Walter W. Heller, now Chairman of the President's Council of Economic Ad- visors, in a report to the House Ways and Means Committee in 1959. At that time, Mr. Heller wrote, in support of a tax credit: Its most fundamental purpose is to pro- tect the power of the purse underlying State sovereignty and local independence. More- over, Federal credits, while certain to bring about greater uniformity not only in income tax burdens but also in the structure of in- come taxation at the State level, leave ample room for variations in State definitions of income, exemptions, and tax rates. I ask unanimous consent that the bill to amend the Internal Revenue Code of 1954, to allow individuals a credit against Federal income tax equal to 7 percent of State income taxes paid by them, be printed in the RECORD at the close of my remarks, and that it be held at the desk for a period of 7 days, for cosponsors. I also ask unanimous consent that a table showing the maximum authorized value of the tax credit to each State be printed at this point in the RECORD. The PRESIDING OFFICER. The bill will be received and appropriately re- ferred; and, without objection, the bill and chart will be printed in the RECORD, and the bill will lie on the desk, as re- quested by the Senator from Oregon. The bill IS. 2251) to amend the In- ternal Revenue Code of 1954 to allow to individuals a credit against Federal in- come tax for State income taxes paid by them, introduced by Mrs. NEUBERGER, was received, read twice by its title, referred to the Committee on Finance, and or- dered to be printed in the RECORD, as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subpart A of part IV of subchapter A of chap- ter 1 of the Internal Revenue Code of 1954 (relating to credits against tax) is amended by renumbering section 39 as section 40, and by inserting after section 38 the following new section: "SEC. 39. STATE INCOME TAXES. "(a) GENERAL RULE.-In the case of an individual who has paid State Income taxes during the taxable year, there shall be al- lowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to so much of the State income taxes paid as does not exceed 7 percent of the indi- vidual's Federal income tax liability for the taxable year. "(b) FEDERAL INCOME TAX LIABILrTY.-For purposes of subsection (a), the term 'Fed- eral income tax liability' means the tax im- posed by this chapter for the taxable year reduced by the credits allowable under- "(1) section 33 (relating to foreign tax credit), "(2) section 34 (relating to credit for divi- dends received by individuals), "(3) section 37 (relating to retirement in- come credit), and "(4) section 38 (relating to credit for in- vestment in certain depreciable property). "(c) DEFINITIONS AND SPECIAL RULES.- "(1) STATE.-For purposes of this section, the term 'State' includes the District of Co- lumbia; but such term does not include any political subdivision of a State. "(2) INCOME TAXES MUST BE DEDUCTIBLE.- An amount of State income tax paid by an individual shall be taken into account in determining the credit under subsection (a) only if such amount is allowable as a deduc- tion to the individual under section 164." (b) The table of sections for such subpart is amended by striking out "Sec. 39. Overpayments of tax." and inserting in lieu thereof "Sec. 39. State income taxes. "Sec. 40. Overpayments of tax." SEC. 2. The amendments made by this Act shall apply to taxable years beginning after December 31, 1963. The table presented by Mrs. NEU- BERGER is as follows: Tax credit proposal-State-by-State break- down of 7-percent credit U.S. [taxable income=$171,931,909,696; U.S. income tax after credits=$39,545,380,0001 Federal tax liability 7 percent of (1) Alabama---------------- Alaska------------------ Arizona- --------------- Arkansas---_----------- California_-__-_------ Colorado------------- Connecticut------------- Delaware --_ _ _ _ _ _ _ _ _ -- District of Colutnbia---- I Florida -Florida__________________ Oeorgia---------------- l lawaii------------------ Idaho ----------------- Illinois__________________ Indiana----------------- Iowa-------------------- Kansas__________________ Kentucky_______________ Louisiana--------------- Maine M ---------------- assachusetts---------- Michigan --------------- Mhmesota-------------- Mississippi-------------- Missouri _______________ Montana---------------- Nebraska --------------- Nevad a----------------- New Hampshire-------- New Jersey_____________ New Mexico____________ New York______________ North Carolina_________ North Dakota___-_______ $384,260,000 56,262,000 253,511,000 164,662,000 4, 516, 589, 000 308,589,000 834, 911, 000 160,581,000 272,534,000 851, 475, 000 1117, 492,000 154,450,000 103,661,000 2, 050, 920, 000 097, 204, 000 477,063,000 396, 367,000 375, 528, 000 448,224,000 147, 835, 000 802,038,000 1, 361, 979,000 1, 907, 063, 000 640, 702, 000 163,794,000 884, 223, 000 110, 088, 000 262,493,000 88, 831, 000 124,605,000 1, 738, 877, 000 145, 092, 000 5,076, 661, 000 510, 969, 000 75, 016, 000 $26,898,200 3,038,340 17, 745, 770 11, 626,340 316,161,230 27,901,230 58,443,770 11,660,670 19,077,380 50,603,250 36,224,440 10,811,500 7, 260270 206,564:400 69,810,580 33, 394, 410 27, 745, 600 26, 286, 960 31,375,680 10, 348, 450 56,142, 660 951, 338, 530 133, 557, 410 44,849,140 11, 465, 580 61, 895, 610 7,706,160 18, 374, 610 (1,218,170 8, 715; 380 121, 721,390 10,166,440 355, 366, 480 36,397,830 5,251,120 Tax credit proposal-State-by-State break- down of 7-percent credit-Continued Its. taxable income=9171,031,909,000; U.S. income tax after credits=$39,545,386,0001 Federal tax liability (1) 7 percent of (I) (2) Ohio ------- ------------- $2,384.896,00() $166,942,720 Oklahoma--------------- 364, 287, 000 25, 509, 090 Oregon ------------ 383,156, 000 26, 820, 920 Pennsylvania___________ 2,586,134,000 181,029,380 Rhode Island _________-_ 186, 292, 000 13, 040, 440 South Carolina__________ 227,103,000 15,897,210 South Dakota___________ 77,376,000 5, 416, 3211 Tennessee_______________ 474, 265, 000 33, 108, 5511 Texas-- ---------------- 1, 693, 213,000 118, 524, 011) - Utah-------------------- 152,870,000 10,700,900 Vermont________________ 55, 892, 000 3,912,440 Virginia----------------- 676.256, 000 47, 337, 920 Washington------------- 661, 813, 000 46, 320, 910 West Virginia ----------- 268,931,000 18,825.170 Wisconsin ............... 842, 739, 000 58, 991, 730 Wyoming--------------- 70, 643, 000 4,045,010 Other areas------------- 69,078,000 4,835,460 39, 545, 386, 000 2,768, 177,020 Source: "Individual Income Tax Returns for 1060," U.S. Treasury Department, Internal Revenue Service, p. 78, table No. 12 ("Income Tax After Credits"). REPORT ENTITLED "A BUILDING FOR A MUSEUM OF HISTORY AND TECHNOLOGY FOR THE SMITH- SONIAN INSTITUTION" (S. DOC. NO. 40) Mr. ANDERSON. Mr. President, pur- suant to the requirements of section 4 of Public Law 106, 84th Congress, 69 Stat. 189, I submit to the Senate, from the Joint Congressional Committee on Construction of a Building for a Museum of History and Technology for the Smithsonian Institution, a report entitled "A Building for a Museum of History and Technology for the Smithsonian In- stitution," and ask unanimous consent to have it printed as a Senate document. The PRESIDING OFFICER. Without objection, it is so ordered. ADDRESSES, EDITORIALS, ARTICLES, ETC., PRINTED IN THE APPENDIX On request, and by unanimous consent, addresses, editorials, articles, etc., were ordered to be printed in the Appendix, as follows: By Mr. McNAMARA: Text of statements by Senator MUNDT and Senator MusiIE on the Northwestern Uni- versity radio program dealing with the ques- tion: "What Should Be the Role of the Fed- eral Government in Providing Medical Care to the Citizens of the United States?" By Mr. DODD: Address delivered by Kenneth Holum, As- sistant Secretary of the Interior for Water and Power Development, relating to the proposed Passamaquoddy power project, Maine. By Mr. CASE: Sundry editorials and an article; also a letter dated October 17, 1963, from himself to the Attorney General, dealing with civil rights demonstrations in Georgia. By Mr. BARTLETT: Article entitled "The King of Kodiak- Taking Aim at the Biggest Bear in the World," published in the National Observer on Sep- tember 9, 1963. By Mr. MONRONEY: Resolution adopted by the Board of City Commissioners, Waurika, Okla., relating to the Waurika project. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 19f 30 Approved For Ref R 5Sf pffi L IAA-E-RDP~666BOO4,EO3RROO0500040029-0 October 22 MESSAGE FROM THE HOUSE A message from the House of Repre- sentatives, by Mr.`Bartlett, one of its reading clerks, announced that the House had agreed to the amendments of the Senate to the bill (H.R. 3306) to estab- lish a revolving fund from which the Sec- retary of the Interior may make loans to finance the procurement of expert assistance by Indian tribes in cases be- fore the Indian Claims Commission. ENROLLED BILLS SIGNED The message also announced that the Speaker had affixed his signature to the following enrolled bills, and they were signed by the President pro tempore: II.R.75. An act to provide for exceptions to the rules of navigation in certain cases: H.R.641. An act to approve an order of the Secretary of the Interior canceling and deferring certain irrigation charges, elimi- nating certain tracts of non-Ir.dian-owned land under the Wapato Indian irrigation project. Washintgon, and for other purposes; 11-R. 2268. An act for the relief of Mrs. Geneva H. Trialer: 11.R. 4589. An act to provide for the with- drawal and reservation for the Department of the Navy of certain public lands of the United States at Molave B Aer!al Gunnery Range, San Bernardino County, Calif., for defense purposes; and H.R. 6377. An act for the rel;af of Sp5c. Curtis Melton, Jr. NEED FOR RETURN OF BOXCARS Mr. MANSFIELD. Mr. President, one of the needs of Montana and the West is to have returned to our operating rail- roads-the Great Northern, the Northern Pacific, and the-Milwaukee-the boxcars which now are scattered all over the United States. We need them to move our wheat, lumber, and livestock to their destinations. We cannot get them for our own use, because the eastern lines have hogtied them, through payments on a per diem basis and a refusal to build their own boxcars. One way to alleviate this shortage Is for the Commerce Committee to report Senate bill 1063. which will increase the per diem that the railroads which use other railroads boxcars' have to pay. Another way is for the Interstate Com- merce Commission to order the prompt return to the western roads of the box- cars which belong to them, and to forbid the eastern railroads to keep them per- petually in bondage on the basis of a low- cost per diem scale. This is a perennial problem in Mon- tana and the West. and we are getting sick and tired of a practice which per- mits boxcars needed and built for our section of the country to be sinhoned off and kept in bondage by railroads operat- ing in the other sections of the Nation. I call upon the Association of Ameri- can Railroads, the Interstate Commerce Commission, and the Commerce Commit- tee to correct this unhealthy ,.ituation- -_ nd soon. UNITED NATIONS INTERNATIONAL TRADE CONFERENCE Mr. LAUSCHE. Mr. President, I am apprehensive about the purpose and pos- sible results of the Soviet-proposed L: nited Nations International Trade eon- ference, which is scheduled to me( t in Geneva early next year. For a number of years. Russia has been promoting talks, conference.,, or discussions of the problems of irate na- tional trade. The United States has resisted, because of the obvious attc mpt of the Soviets to use such talks as for ums fur propaganda. The lack of success of tha Soviets has not diminished their fervor. The iud- den enthusiasm for the proposed son- ft rence on the part of the d=veto ring countries is undoubtedly the resul; of srveral years of propaganda work them by the Soviets. The United States now faces a demand for such a eor Ter- ence, and has agreed, although u ider conditions which our diplomats hope will prevent too much Communist contr,-I of the subject matter. Somehow the developing coun ries feel that they have been deliberately left out of GATT; and even though the United States has had a far-rear' ling program for aiding these countries, hey have been led to feel that they are b sing exploited and not treated as equals. This is the Communist line, pure and simple. Whether the so-called safegu trds under which the conference is b sing planned can be maintained is a serious question. There is little question but that the Soviets will do all possibl s to inject extraneous issues, publicize e1 rors the United States may have made, and generally create the impression that the capitalistic nations are exploiting t:iose less developed. The extent to which the Soviet Iii e is accepted will be evident when the v )tes on the various issues raised are ( ast. The United States is now on the de'en- sive, and the conference will plan us more and more in that posture. Can the West gain by the conference? Car we :rain as much as we stand to lose? The recent switch from a polio, of little or no trade with the Commui fists to one of open competition for the sian market has set the stage for a w de- open conference, with Russia in a r asl- Lion to "call most of the shots." Russia has flipped the coin-heads, the Ius- slans win; tails. the United States If ses. Many questions about such a con'er- cnce arise In my mind; and I believe the Congress should explore them fully, in order that the answers may be de ;er- mined: First. How certain and secure are the limitations on the subjects to be iis- cussed, as outlined by the Prepara ory Commit tee? Second. Will the suggestions and Sec- ommendations to be made by the m sm hers of the conference come by majority vote? Will there be "vetos," report: by the majority, or reports by a minor ty? Third. What will be the lineup of the countries participating in any vo Ing that may transpire? Will each country have one vote? Is there any hope I hat the United States can hold the line be- fore the conference or during the can- ference? Fourth. Is it true that one of the major points to be discussed is the meth- od by which developing countries may obtain increased financial assistance- from the United States, as well its from other countries-on more liberal terms than in the past? Fifth. Is it true that one of the prime purposes of the conference is to dis- cuss the creation of some new world trade organization) Will it be similar to the defunct ITO--the International Trade Organization-or the OTC-the Organization for Trade Cooperation- both of which could not "get off the ground" in the United States? Sixth. Is the planned new world trade organization to be under the control of the United Nations? Is it to be related in any manner to the United Nations? By what means will Russia be e~:eluded from membership In the new interna- tional trade group; or is it intended that the Communist countries will be full participants? Seventh. When the suggestions or rec- ommendations of the members of the conference are up for review, accept- ance, or rejection, what will be the role of the United Nations? Eighth. After all of the abov? ques- tions are answered, will those answers give us any assurance that the United States will be able to maintain its posi- tion that the conference shall not develop into a forum for Soviet bloc propaganda? Ninth. Does the United States sin- cerely desire to be a member of an in- ternational trade organization to which many Communist-dominated countries will belong? What is there to prevent Red China and Cuba from becoming members? Tenth. Do our diplomats feel that with this conference, they can create a real "first"-a breakthrough-arid can outmaneuver the professionals? Has anyone weighed carefully the possible gains against the almost sure losses? Mr. President, present at the confer- ence in Geneva, next year, will be rep- resentatives of many of the nations of Africa, the Far East, and the Middle East. It is claimed that safeguards adopted in regard to the agenda will pre- clude any effort to make those at the meeting overlook the existing policy with regard to international trade with the Sino-Soviet bloc. My purpose in making this statement today is to point out that I am gravely apprehensive about what will happen in 1964. Our voice at the conference will be limited in its effect. Undoubtedly, Red Russia will use the meeting as a platform from which to propagandize against us. It is my hope that the ultimate result of the conference-which will be held at the same time that the GATT con- ference will be held-will be to protect the interests of the citizens and the bust- PROPOSED SALARY INCREA to express my opposition to the Pending proposal to Increase the salaries of high- echelon officials of the Government. It is contemplated to raise the salaries of Members of Congress from $22.500 to Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 L r~~+G Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - HOUSE 19131 duction of surplus crops. Judging from census data, the wheat acreage in the three project counties declined by almost a third in the period 1949-59, from 662,672 acres in 1949 to 466,698 in the latter year. Other, more profitable crops take over. While the Columbia Basin project is still in relative infancy, future patterns already emerge more clearly. For example, Grant County, which has about half of the project-Irri- gated lands within its borders, has ad- vanced to one of the leading counties nationally In the production of Irish potatoes, jumping from 29th place to 11th place in the lineup of producing counties in the 5-year period 1954-59. In terms of value of all farm prod- ucts sold, Grant County now occupies 64th place among the 100 leading coun- ties in the Nation; only 5 years earlier, it was not even listed among the top 100. This kind of enterprise produces widely ranging, beneficial consequences felt throughout the economy. Produc- tion of sugarbeets has brought about the establishment of processing facilities. One of the largest sugar plants In the United States is now located on the project near Moses Lake. Its recent ex- pansion of capacity to accommodate production on the project has been equivalent to adding an entire new fac- tory. Facilities such as these create em- ployment, bring new payrolls, people, and business into the cities and towns of the basin. Production of livestock has also added new dimensions to the economy of the Columbia Basin, and, indeed, to the econ- omy of the West and the Nation. The rapidly growing western population and economy have created new demand for livestock and livestock products. In 1952, the cattle on farms of the Colum- bia Basin project numbered a mere 1,517. In 1962, just under 60,000 head were In- ventoried, not counting the approxi- mately 87,000 head which passed through project feedlots. In the face of this production tempo, feed grains have had to be imported into the State of Washington, even though this is basically uneconomic when such grains have to be shipped over long distances. For example, it is estimated that if all feed grains shipped to the State of Wash- ington in 1961 had originated In the Mid- west surplus area, transportation charges would have added roughly $1.3 million to the West's food bill, or 10 cents more'per pound of choice beef meat at the grocery store. In this view, proj. ect production of livestock feed and for- age serves a definite and worthwhile economic purpose. Water resource development through reclamation is not a haphazard under- taking, that may or may not yield divi- dends to the investing taxpayer. On the contrary, reclamation projects have proved their worth over and over through the years as a definite economic force In all parts of the arid and semiarid West. The Columbia Basin project, while still young, will be no exception. It has cre- ated homes, fares cities, and opportuni- ties for livelihooS In an area once sage- brush and the home of jackrabbits. There are now 20 farms in the basin to the contribution for each one that existed before. Prop- a growing America. erty taxes for the irrigated farms exceed those for dryland farms by 10 times o more. Retail sales In the three-county; PRO project area have increased from about $45 million in 1948 to $104 million in 1958, and estimates indicate that they will reach nearly $130 million by the end of 1963. During the same 1948-58 pe- riod, project-stimulated economic activ- ity has caused the sales volume of the wholesale industry to grow by more than $43 million. Bank deposits, as a rough measure of the rising financial well- being of individuals, swelled the coffers of Adams, Franklin, and Grant County bankers by more than $34 million, rising from $24.5 million In 1949 to $58..5 mil- lion in 1960. Surely this is a splendid record, con- sidering the short time that a part of the Columbia Basin project has been in operation. But consider also that the cost of the Columbia Basin project is 95 percent reimbursable; that is, the reve- nues from power sales and the payments of irrigators will ultimately repay to the Federal Treasury all but about 5 percent of the Federal cost of project construc- tion. Approximately 17 percent of the project's cost to date has already been repaid. In fiscal year 1962, net revenues from power operations alone brought in nearly $10 million to be used for repay- ment of construction costs and interest charges thereon. Repayment of irriga- tors continue on schedule. The facilities of the Columbia Basin project presently Include four storage reservoirs, the Grand Coulee power- plants, nearly 300 miles of canals and more than 1,600 miles of laterals, ditches, and drains. Truly a multipur- pose undertaking, these works not only generate power and provide needed water supplies for the economy of the basin, but also provide substantial flood control, navigation, and recreation ben- efits. In 1962, for example, almost 1.4 million visitor-days of recreation use were reported on the 206,000 acres of land and water surface and the 1,041 miles of shoreline available to recrea- tionists and visitors on the project. Newspaper accounts tell of the haven which awaits the hunter of waterfowl. In one county alone hunters bagged 105,000 ducks last year. Mr. Speaker, the Columbia Basin project is just one example of what rec- lamation means to once-unproductive areas. During the next few weeks I will tell of projects located all over the west- ern half of the United States, and point CONGRESSIONAL EMPLOYEES (Mr. UDALL asked and was given per- mission to address the House for i min- ute to revise and extend his remarks, and to include extraneous matter.) Mr. UDALL. Mr. Speaker, from read- ing press accounts and statements of some of my colleagues one might assume that only Congressmen and Cabinet members would receive increases in com- pensation under H.R. 8716, which I have introduced. I think it should be emphasized that this is an omnibus pay bill. It provides for increases in pay for 21/2 million fine people-our Federal employees in all three branches of Government. Among the most dedicated, loyal, and talented people in Government are those who work for Members of Congress and congressional committees. The effec- tiveness of Congress depends to a very large degree on these Members' aids and on committee staffs. We ought to make certain that their compensation is kept at a level sufficiently high to keep them working on Capitol Hill-to pre- vent them from being lured away by industry. Generally in the past, salary -increases for staff employees of Members of Con- gress and of congressional committees have been granted in amounts similar to increases granted employees in the ex- ecutive and judicial branches. However, this policy was abandoned last year when staff employees of the legislative branch were granted a 7-per- cent increase under section 1005 of Pub- lic Law 87-793, while executive and judi- cial branch employees under the same act were granted two Increases totaling an average of 9.2 percent, with sub- stantially larger percentage increases in the upper grades. The first of these two increases was effective in October 1962 and the second will be effective in Janu- ary 1964. No January 1964 increase was provided for legislative branch employees. H.R. 8716 will correct partially the omission made by last year's bill by granting increases to staff employees on the Hill which will reflect the total in- creases proposed for employees under the Classification Act of 1949 over the increases the Classification Act em- ployees received in October 1962. Examples of the increases proposed by H.R..8716 are as follows: Positions Basic rate Gross rate Percentage of increase Amount Now gross under - of increase annual rate II.R. 8716 Secretary___________________________________________ Clerk $1,060 $5,002 7.0 $350 $5,352 ----------------------------------------------- Administrative assistant---------------------------- 3,800 7.000 8,080 15,349 10.0 18.0 898 2,762 9,887 18 111 Committee counsel--------------------------------- 8,100 17,418 24.0 4,180 , 21 598 Committee staff director---------------------------- 8,880 18, 884 26.5 5,004 , 23,888 The annual rates for committee staff employees are subject to a maximum base rate of $8,880, or a gross annual rate of $18,884. At one time this base rate resulted in a gross rate equal to the top rate of the Classification Act. How- Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - HOUSE October 23 ever, the arbitrary percentage increases granted by the Congress have resulted in the maximum rate for committee staff employees of $18,884, which is consider- ably lower than the top rate under the Classification Act of $20,000. H.R. 8716 will remove the base limita- tion of $8,880, and establish a new lim- itation which will be equal to the top rate of the Classification Act, $25,550 under H.R. 8716. These provisions are just one more of the many compelling reasons why the 1963 Federal salary legislation should be enacted. SOME SIMPLIFICATIONS OF THE OPPOSITION TO THE EXTENSION OF THE BRACERO PROGRAM (Mr. TALCOTT asked and was given permission to address the House for 1 minute and to revise and extend his re- marks.) Mr. TALCOTT. Mr. Speaker, one of the great attributes of the decisionmak- ing procedure of the legislative function of Congress is that the important Issues are ground fine in the crucible of debate, the flaws are exposed under the spot- light of public opinion, facts are sepa- rated from fiction, and the ovcrt con- sequences rise to the top over the covert promises. This is true regarding the bill to extend Public Law 78, the bracero program, for supplying necessary sup- plemental farm labor for peak harvests. Finally the objectives and conse- quences are being clarified. There ap- pear to be two principal reasons for opposing the extension of the law. Both, when fully understood, are terri- bly dangerous to the working people of America. One group of opponents wants Mexican nationals to be admitted to the United States without limitation, as free men, as permanent residents and citi- zens. It is easy to sympathize with those who want to permit unlimited immigra- tion of Mexican nationals into the United States. There is a great insati- able desire by Mexican nationals to come to the United States permanently. Job opportunity, wages, working condi- tions, living conditions are unbelievably superior in the United States. Freedom from oppression, governmental controls and socialism-even communism-dis- ease and poverty Is immeasurably greater in the United States. Many Mexican nationals have relatives, friends, and former neighbors in the United States. Life is immensely bet- ter in the United States. Thousands of applicants for permanent immigration from Mexico to the United States are denied each year. The bracero program is an irritating impediment to the un- limited immigrationist. if the immigration law and regula- tions were relaxed, hundreds of thou- sands of Mexican nationals would swarm over the border and into every State in the Union. Such permanent immigration would cause immediate and widespread havoc in our labor force. Most of the many Mexican immigrants would be unskilled and would at first compete with native American unskilled labor-naturally forcing many of our citizens out of work and depressing wages because the Mex,- cans are used to working for much le is and need much less than our domest.c workers. The Mexican national is bright, indu.;- trious, ambitious, and eager and able ;o learn. He would soon branch out in o semi-skilled and skilled employment - offering strong competition for the jo is now held by our citizens. They would also migrate rapidly from the bord !r and agricultural areas into the urbi n and Industrial areas offering more ai.d more deadly competition in areas, er. i- ployments, and Industries already bu -- dened and anguished by unemployme it and underemployment. These Mexici n Immigrants would first seek work ai.d homes in the border and agricultural areas, but when the first harvests were completed and the farm work peters out, they would quickly migrate in ;.tl directions and Into all Industries. The schools through which their chil- dren moved-perhaps many times a year-would be thoroughly disrupted - detracting immeasurably from the qual- ity and quantity of the education of the migrants as well as the American re- El-dents. The extraordinary additional cost and disruption would seriously hi: i- der all primary and secondary education in America. After the harvests, from 3 to 6 mont is of the year. there would be no jobs f )r them in America. In almost every oth !r industry and occupation there is a su plus of labor. Therefore, newly arriv id Mexican immigrants-freemen and their families-would need and seek re- lief and welfare assistance. This n( w demand could very well bankrupt ma: iy local and State welfare and unemplo -- merit insurance programs, as well is force a wider and wider migration avid a further depression of wages and wor s- Ing conditions, not only among the u i- skilled, but among the semiskilled a id even skilled workers. We simply are not prepared now f Dr a sudden inundation of hundreds of thousands of poor, unskilled workers a id their families from Mexico or any otter -nation, We have some obligations to the needy and poor of the world as d, especially, our Mexican neighbors, tut we have a primary and immediate obi- gation to our own poor, needy, and u:i- employed In the United States. 'i hese promoters of unlimited imn.i- gration from Mexico into the United States oppose the bracero. The brace ro program limits the demand for Mexic in migration Into the United States to the harvest seasons only and to agricultu -al work and agricultural areas only. In the event of the elimination of the bi a- cero program, many pressures for Ln- Iimited immigration would greatly aid dramatically increase. Modification of the present Immigration laws and new Immigration laws would be loudly c e- nianded. Another group which opposes an r x- tension of Public Law 78 is composed of some-but not all, by any means-bosses in organized labor. They are few, I ut they are vocal and persistent. Th tir motives vary from a commendable sc lf- less interest in improving the wages and working conditions of agricultural a- bor to a less commendable selfish inter- est of adding dues to the union coffers for the perpetuation of their own .lobs. Some responsible leaders in reputable, knowledgeable labor unions openly sup- port an extension of the bracero pro- gram. They know it is necessary and that it produces good jobs for thousands of men and women in farming and allied industries who would not otherwise en- joy good-or any-employment. Some labor leaders remain aloof, pre- ferring not to offend those in organized labor who are against the bracero. They would like to be loyal, but they would also like to be right. Among labor- leaders, bosses, and the rank and file- I hear from the selfish bosses, not from the rank and file. The reason is simple. The bosses want to enlarge the number of dues payers. Dues are their lifeblood. Dues from the rank and file perpetuate the bosses in power. The rank and file, the workers, the men who need new jobs or who need to maintain their present jobs-in agriculture and allied indus- tries, such as packing, packaging, manu- facture, processing, fertilizing, and transportation by truck and by rail- road-know how important it is that the crops be harvested, and how vital sup- plemental labor is during the harvest season. They know that when crops are not planted, or when they spoil, many men and women lose jobs like fall- ing dominoes. The workers know that the bracero does only the job that. will not be done by domestics. The wo?kers also know that when the harvest is com- plete, the braceros go home and do not take the jobs of other American citizens. He knows the bracero does not jeopard- ize his welfare and unemployment sys- tems. The worker likes the bracero. When there is a bracero around, `.here is always work for a domestic. The worker does not write his Congressman to vote against Public Law 78. Only a few bosses, a very few, write against the program. An inundation of Mexican nationals, as permanent residents, as freemen, to re- place the bracero would be a large new source of prospective dues payers and power to the labor boss. This is the crux of why we receive reams from a few labor bosses, who are vocal and have lobbyists and Washing- ton representatives; and also why we hear privately from the rank and file and from some responsible leaders of reputable unions who favor an extension. I would like to suggest that the heads of labor organizations tell their members both sides of this controversy. Few problems have simple answers. There are two sides-and each must concede that his side is not the only side with any merit. Give the worker the full story from both sides. Let the laborer make his own decision on the bas>is of how the solution and consequences will affect him and his family. When the worker is given the facts, the full story, both sides of the controversy, I will trust his judgment. Our immigration laws admittedly need revision. Many suggestions for re'asion are being considered in Congress now. Immigration laws are important, but delicate. Any scheme to force a major Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1963 CONGRESSIONAL RECORD - SENATE $35,000; to raise the salaries of Cabinet officers from $25,000 to $40,000; to raise the salaries of the Deputy Secretary of Defense, the Under Secretary of State, the Administrators of AID, HHFA, NASA, and VA and the chiefs of mission, who now receive $27,500, to the top level of a new salary of $38,500. It is proposed that another class of Federal officials receive a pay raise from a present level of $25,000 to a new level of $36,500. If the bill is enacted into law, Supreme Court judges will receive a salary increase from a present level of $35,000 to a new level of $60,000. Legis- lative employees and others will also be affected by the bill. In my judgment, a grave mistake will be made if the bill is passed. If any- thing, the Congress of the United States and the high echelon officials ought to set an example, proclaiming to the peo- ple of the Nation that this is a time when we should ask not what the Gov- ernment will do for us but what we can do for Government. The example proposed in the bill will rise to plague us. We will be rendered defenseless against the increasing de- mands that will come from Federal em- ployees for increased salaries and wages. The argument is made that we cannot get judges, that we cannot get people to run for membership in the House of Representatives or in the Senate, and that we cannot get prosecutors and top level officials to work for the Federal Government. To that argument I say, "Balderdash." Mr. KUCHEL. Mr. President, will the Senator yield for a question? Mr. LAUSCHE. In a moment I shall yield. For every Senator in Congress there are 100 persons who would like to displace him. For every Member of the House of Representatives there are 500 persons who would like to have the job. I wish to repeat what I said some time ago: If one should come to the Congress with a loaded shotgun and threaten to use it, he could not get out of the Capitol the Members of the House and the Mem- bers of the Senate. Yet it is argued that unless we increase salaries, our country will go to the dogs because no one will run for the Senate or for the House. I cannot subscribe to that argument. A proposal has been made to raise the salaries of Supreme Court judges from $35,000 to $60,000. I wonder if there is a Senator or a Representative who can point to one instance in which an ap- pointment to the Supreme Court has been declined by a lawyer because the salary is inadequate? For every judicial vacancy that exists on the Federal bench in Ohio, I have at least 30 applicants for the post. Let. us not forget that the judges are not only remunerated liber- ally but also receive other benefits. The other day I read in the newspaper that certain judges of the District of Colum- bia who are performing work akin to the duties of a municipal judge of Cleve- land become entitled, at the end of 10 years' service, to a full salary for the re- mainder of life. If that is not robbing the taxpayer, I do not know what theft means. I have been in office for some time in my life. I have learned one principle: No. 169-6 If you want to possess the ability to turn down improper demands, keep yourself clean. Keep yourself in a position in which you can say, "I have denied my- self of this benefit which you ask me to give." But I suppose that before the present year has passed away the bill providing for increased salaries for top-level Fed- eral employees will be passed. I now ask Senators to listen particu- larly to some information which will be startling to them. On the basis of re- ports made in October 1962, the average weekly earnings of full-time State em- ployees, except those in education, is $91 a week. For the same period in 1962 the average Federal employee's wage was $113 a week. Throughout the country the average weekly compensation of State employees is $91, and the average for Federal employees is $113. In Ohio the average State employee's salary is $86. Ohio must compete with the salaries and wages paid to Federal employees, who in Ohio are now earn- ing $117 a week. In Ohio the Federal employees are earning $35 a week more than the State employees. The information which I am stating is the product of a tabulation made by a U.S. public official in Ohio. The tabula- tion states: It is interesting to note that there are nearly two Federal employees in Ohio for every State employee. That is another bit of shocking in- formation: For every State employee there are two Federal employees. The way we are moving forward, the time will soon be at hand when there will probably be three to one. The author of the tabulation further states: It is also noteworthy that average earnings of Federal employees in Ohio are 35 percent higher than those of State employees. Mr. President, that fact is true prac- tically everywhere. I ask unanimous consent that the tables to which I have referred be printed at this point in the RECORD. There being no objection, the tables were ordered to be printed in the RECORD, as follows. 19031 Average weekly earnings of full-time State employees, except in education, October 1962-Continued Full-time State employees Average weekly earnings 23. New Mexico_______________ 6,799 $88.61 24. Iowa---------------------- 16, 532 88. 13 25. Pennsylvania_____________ 77,405 87.63 26. Rhode Island______________ 7,899 86.68 27. Ohio- --------------------- 46,838 86.56 28. Maryland_________________ 20,100 86.30 29. North Dakota_____________ 4, 511 85.55 30. North Carolina____________ 28,555 85.36 31. Kansas -----`-------------- 14,223 84.90 32. South Dakota_____________ 4.986 84.90 33. Maine--------------------- 8.987 82.69 34. Kentucky________________ 19,385 80.91 35. Indiana___________________ 23,126 79.74 36. Georgia______________ 20,435 79.44 37. Missouri__________________ 23,757 79.06 38. Virginia___________________ 30,470 77.71 39. Nebraska ------------------ 9,717 76.59 40. Texas_____________________ 46,862 76.50 41. Florida-------------------- 30, 989 75.19 42 . Alabma__________________ 17, 229 75.16 93. Louisiana_________________ 31,197 74.59 44. Delaware ----___________?_ 4,886 73.86 45. South Carolina____________ 15,003 73.00 46. Oklahoma_________________ 16,520 72.72 47. West Virginia------------- 15, 598 68.64 48 . Misissippi________________ 12, 638 67.00 49. Arkansas__________________ 11, 767 65.42 50. Tennessee _________________ 20, 605 65.08 Source: Bureau of the Census "State Distribution of Public Employment in 1962," April 1963; Washington, D.C. Computed from October 1062 full-time equiva- lent employment and total payroll, for functions other than education. Average weekly earnings of Federal em- ployees covered by unemployment com- pensation, 1962 All States_______________ 1. District of Columbia------ 2. Alaska______-------------- 3 . Alabama__________________ 4. California_________________ 5. Maryland_________________ 6. Ohio------------ ------- -- 7. IIawaif------------------ __ 8. Oregon-------------------- 9. Nov Jersey________________ 10. New Ilampshire___________ 11. Pennsylvania______________ 12. Utah --------------------- 13. Tennessee_________________ 14. Now York_________________ 15. Florida____________________ 16. Washington_______________ 17. Massachusetts_____________ 18. Colorado__________________ 19. Virginia___________________ 20. New Mexico _______________ Average weekly earnings of full-time State 23. Nevada____________________ employees, except in education, October 24. Arizona____________________ 10.1 , 25. Rhode Island______________ Full-time State employees Average weekly earnings 26. Oklahoma_________________ - 27. Missouri__________________ 28. Wyoming ------- --------- 29. Delaware------------------ 30 . Illinois____________________ 31. Montana__________________ - 32. Louisiana----------------- Texas 33 All States--------------- $91.42 - I . Alaska_______________ 3,129 147.38 2. California_________________ 93,619 124.69 3. Ilawail-------------------- 5,924 114.38 4. Nevada___________________ 2, 705 111.60 5. Michigan------------------ 84,316 109.71 6. New York_________________ 109,104 104.94 7. Washington_______________ 20, 468 101.68 8. Wisconsin----------------- 16,972 101.48 9 . Oregon-------------------- 15,863 91.48 10. Illinois -_____-------------- 44,654 98.84 11. Colorado__________________ 11, 741 98.36 12. Utah ---------------------- 5, 803 98.36 13. Connecticut --------------- 20,362 97.17 14. Arizona___________________ 8, 313 96.07 96:03 15. Vermont__________________ 8,917 18.-Montan.a__________________ 5,925 95.72 17. Mlsmesota________________ 19,075 94 72 18. Wyoming_________________ 3,355 94. 17 10. Massachusetts_____________ 87,710 93.13 20. Now Jersey________________ 28, 670 92.99 21. Idaho----------------- 6, 392 91.50 22. New Hampshire ----------- 6,191 89.48 _____________________ 34. Georgia -------------------- 35. Indiana___________________ 36. Vermont__________________ 37. Idaho ota________ 3038. 38. Idaho y_________________ 41. South 40. South Wisconsin Caro_l__ina______________ ____ 42, West Virginia_____________ 43. Mississippi________________ 44. Nebraska__________________ 45. Kansas _________.________._ 46. Arkansas .47. Maine_____________________ 48. Iowa ------------- 49. North Dakota____ 50. South Dakota___ 51. North Carolina__ 52. Virgin Islands_____________ 53. Puerto Rico_____ Average Average Federal weekly employees earnings 212, 830 138.32 14,796 135.22 67,684 121. 11 266,249 118.57 77, 436 117.97 95,740 117.12 27, 771 116.36 22, 724 116. 04 59, 783 115. 99 13,934 IN. 80 136, 036 114.93 30, 237 113.87 39,533 113.35 185,735 113.07 55,880 112.83 52, 416 112.82 68,196 112.72 39, 097 112.37 87, 809 112.05 26,044 111.98 48,105, 110.72 16, 113 110.58 7, 216 109.82 22, 806 109.47 13,695 109.21 47,220 108.69 56,048 108.62 6,023 108.49 4,204 108.11 108, 954 107.92 11,628 107.31 26,249 107.05 129.770 106.15 65, 545 105.79 35,776 106.02 3,522 104.84 28, 015 104.33 9,053 103.80 32,884 103.65 23,092 102.65 28,141 102.37 11,609 102.18 19,465 101.82 19,402 99.41 25,091 98.60 16,630 97.58 9,243 97.34 21 321 97.15 4 8,504 : 96.38 11, 384 96.83 37, 007 93.17 14,210 91.19 9,302 87.62 Source: U.S. Bureau of Employment Security, from tabulations of State agencies. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENATE October 22 Mr. LAUSCHE. So the band begins demands, we should make certain that to play, the hurdy-gurdy moves on, and we follow a course of conduct that will the Congress contemplates making place armor upon our bodies to enable things worse than they are. The bill of us to say "No," rather than to weaken which I speak ought not to be passed. ourselves through the act of granting in- If it is passed, it will rise to plague every creased pay, and thus render ourselves Member of Congress. It will rise to incapable of saying "No" when the time plague us because we shall be rendered comes. defenseless in saying to pressure groups, The PRESIDING OFFICER. Has the "I cannot give you what you ask. You Senator from Ohio concluded? are not entitled to it." The pressure Mr. LAUSCHE. I have concluded, and groups will answer, "You gave yourself I thank the Chair for his courtesy to me V , h e t a pay raise of $12,500. You gave Supreme Court Judges a pay raise of $25,000, and a 50-percent raise in pay to district Judges." My inquiry is, How will we answer those statements? We shall not be able to do so. Mr. President, I believe the Senator from California [Mr. KUCHEL I wanted to ask me a question. Mr. KUCHEL. I noticed in the press the other day that a comparison was made between the Secretary of Defense, Mr. Robert McNamara, who receives $25,000 a year for administering a $50,- 000 million a year defense budget, vis- a-vis the police chief of Chicago, as I recall, who receives, I believe, $30,000 a year. Mr. LAUSCHE. What is it the Sena- tor wishes to ask me? Mr. KUCHEL. I must say I believe that is not defensible. Mr. LAUSCHE. If we are going to fix salaries on the basis of the magnitude of the moneys expended, we shall be in an indefensible and absurd position. If I were to tell the people of the State of Ohio that I want to be in the Senate merely because of the $35,000. they would have a right to tell me to get out. Mr. KUCHEL. The Senator from Ohio, I believe, is correct, but if he will let me comment further- Mr. LAUSCHE. I will allow the Sen- ator to ask his question. Mr. KUCHEL. I believe that the peo- VISIT TO THE SENATE BY GAETANC MARTINO, PRESIDENT OF THE EUROPEAN PARLIAMENT Mr. MANSFIELD. Mr. President, Mr Gaetano Martino, President of tht European Parliament, has honored tht Senate by visiting us In this Chambe: today. The European Parliament is a 142 member body which is the parliamentar: branch of 3 European communities duction inserted in the body of the RECORD. There being no objection, the table was ordered to be printed in the RECORD, as follows: Estimated average annual tax reduction per taxpayer under H.R. 8363 when fully cfjec- tive, by adjusted gross income class Tax reduo- tion (joint committee calculation) Tax reduction 1 n to $3,000----------------- $49 X57 $3,2200 to S5,666 ------------ 67 100 $5,000 to $10,000_-___------ 90 159 000 to $20,000-.----.._- $10 165 :512 , 000_--------- 000 to $50 $20 560 1120 , , $50 00o and over .---.--.-.. 2, 194 25 . All taxpayers -------------- 110 174 I As estimated by Joint Committee on Internal Reve- nue Taxation (Oct. 14, 1963) and shown in table which treats Joint returns as 2 taxpayers. Table Is labeled "Estimated average annual tax reduction per Individual income taxpayer." 2 Excluding capital gains; joint returns counted as 1 taxpayer. Source: OOIce of the secretary of the Treasury, Office of Tax Analysis, Oct. 17, 1963. Its membership includes the leadini: parliamentarians of the Six-France. West Germany. Italy, Belgium, th'-. Netherlands, and Switzerland-and it al ready is the most responsible interparlia nientary group in Europe. During th next several years it will almost certain]: acquire increased responsibility and, In time, become of greater significance in the affairs of Europe. As President of the European Parlia - meirt and as a well-known statesman i in his own right-he is a former NATe) "wise man" and Italian Foreign Min aster-President Martino Is a man c f respect and authority among the Euro- pean parliamentarians. We are indeed fortunate and honore i to have him visit with us today. [AF- plause. Senators rising.] The PRESIDING OFFICER. On bt - half of the Senate, the Chair extends a cordial welcome to our distinguishe3 guest. pie of the United States need to attract to a position such as that of Secretary COMPUTATION OF PROPOSED of Defense the finest, the most able, the INCOME TAX REDUC'T'IONS most competent person that we can find for that very important job. The com- Mr. SMATHERS. Mr. President, cn parison I have just made demonstrates October 15, 1963, the able and distil - that, although the skills which are re- guished chairman of the Senate F - quired by a law enforcement officer in nance Committee had inserted in ti e an American city are not to be under- RECORD a table prepared by the staff I if estimated, they are hardly to be com- the Joint Committee on Internal Re- pared with the skills and techniques re- enue Taxation indicating the averai e quired by the Office of the Secretary of annual tax reduction pthe tax er Individual it. Defense. It occurs to me that this indicates 8383. as passed by the House of Repr:- there is something wrong with laws sentatives. which downgrade, in my judgment-and The table was prepared on the a i- I am not going to make a long speech on sumption that persons filing a joint r this subject-the qualifications for and turn should be counted as two taxpayer s. the salary of one of the most important Inasmuch as persons filing a joint r,-- positions in the Federal Government. turn represent one economic unit. I That Is the only thing that I suggest. asked the Treasury Department to fu Mr. LAUSCHE. If that were the only nish comparable figures for me to inc I- basis on which we would pay to attract sate the average annual tax reduction people to enter Government service, we counting joint returns as a single to i- would be doomed to destruction. If a payer, which I believe gives a more ref t- soldier who is called to duty should de- Istic picture. Inand that he be paid in accordance with Because of the great interest in ti is the significance of the work that he is matter, I ask unanimous consent at t1 Is doing, there would be no end to the pay. time to have the table prepared by I. ie Mr. President, I repeat that if we are Treasury Department comparing these to be able to withstand the inordinate two methods of computing the tax se- WISE MEN ARE ABLE TO REVISE THEIR THINKING: EISENHOWER ON POPULATION CONTROL Mr. GRUENING. Mr. President, when I discussed at some length on October 10 the population problem confronting mankind I pointed to the paradoxical situation which exists when we provide technical and economic assistance to na- tions, thereby helping developing nations grow more food with which they barely keep alive their burgeoning populations. Such assistance, I repeat, merely helps the world take a step backward. Therefore, I am pleased today to call to the attention of the Senate nearly similar words written by former Presi- dent Eisenhower in his article "Let's Be Honest With Ourselves," part 2, appear- ing in the October 26, 1963, issue of the Saturday Evening Post. Says President Eisenhower: The time has come, also, when we must take into account the effect of the popula- tion explosion on our mutual-assistance sys- tem. ? ' ? Unless we do, it may smother the economic progress of many nations which, with our technical and economic assistance are striving to build a decent standard of living. ? ? ? There is no real progress Cr se- curity to a nation which, with outside help, raises its productive capacity by 2 percent a year while the population rises 3 percent. Such thinking is welcomed and -eal- istic and I commend the former Presi- dent for reversing his earlier thinking, and frankly admitting that he has, its he does in his article when he says: Population control is a highly sensitive problem. of course. When I was President I opposed the use of Federal funds to provide birth-control Information to countries we were aiding because I felt this would violate the deepest religious convictions of large groups of taxpayers. As i now look back, it may be that I was carrying that conviction too far. I still believe that as a national policy we should not make birth-control pro- grams a condition to our foreign aid, but we should tell receiving nations how population growth threatens them and what can be done about It. Also, it seems quite possible that scientific research, if mobilized for the pur- pose, could develop new biological knowledge Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000-500040029-0 1963 CONGRESSIONAL RECORD - SENATE 19809 the minority is authorized to select one per- TRIBUTE TO THE LATE by Which the Secretary of the Interior son for appointment, and the person so se- FRANCIS CARR would be directed to place a suitable lected shall be appointed and his compen- sation shall be so fixed that his gross rate Mr. KUCHEL. Mr. President, America plaque at the site of the reservoir. shall not be less by more than $1,600 than owes her greatness to men and women Mr. President, I ask unanimous con- the highest gross rate paid to any other per- who have unselfishly devoted their time, sent that the text of the joint resolution son employed under the authority of this talent, and energy in the public interest be printed at this point in the RECORD, resolution; and (3) with the prior consent to their fellow man. Today I call upon concerned, to utilize the reimbursable serv- together with resolutions by the Shasta the heads of the departments agencies the Congress to honor a Californian who, County Board of Supervisors and the co ices, information, facilities, and personnel of in his lifetime, worked assiduously for Greater Redding Chamber of Commerce, any of the departments or agencies of the his State. each urging approval of such a reso- Government. The late Judge Francis Carr, of Red- lution. SEC. 2. Expenses of the committee, under ding, Calif., was a water lawyer for more The PRESIDENT pro tempore. The this resolution, which shall not exceed $50,- than 40 years. His was a distinguished joint resolution will be received and ap- 00o through January 31, 1964, shall be paid record of public service in varied fields propriately referred; and, without ob- from the contingent fund of the Senate upon vouchers approved by the chairman of the for the good of his fellow Californians, jection, the joint resolution and resolu- committee. In 1932, he was appointed to the State tions will be printed in the RECORD. water The joint resolution (S.J. Res. 130) to The PRESIDENT resources commission. He also pro tempore. Is served as chairman of the State relief designate the powerhouse on Clear Creek there objection to proceeding to the con- commission during the discouraging days at the head of Whiskeytown Reservoir, sideration of the resolution? of the depression in the 1930's. He served in the State of California, as Judge There being no objection, the Senate his local community as judge. In all Francis Carr powerhouse, introduced by proceeded to consider the resolution. these and other ways, he served his na- Mr. KUCHEL, was received, read twice by Mr. CURTIS. Mr. President, I thank tive Shasta County, his State, and thus, its title, referred to the Committee on the chairman of the committee for his his Nation. Interior and Insular Affairs, and ordered courtesy to all the members of the com- Judge Carr helped to develop a plan to be printed in the RECORD, as follows: mittee, particularly those of the minor- and obtain legislative support for the Resolved by the Senate and House of ity. I appreciate the fact that the reso- great Central Valley project on which Representatives of the United States of lution provides for minority represents- construction began in 1935 to meet sera- America in Congress assembled, That the tion staffwise. The task before the com- ous water problems in vast areas of Cali- cap city pod and thing thousand kiat the mittee is not a pleasant one, but it is one fornia. Following through, he was, for head of ity powerhouse oR servo Creek at the that involves the good standing and in- hea Whiskeytown Reservoir shall wer- be several years, the principal advocate for after be known as Judge Francis Carr poer- ttegregrity ity followed of judiciously the entire but Senate. It thoroughly. must the Trinity River division of the Central house in honor of Judge Francis Carr of Valley The PRESIDENT pro tempore. With- -coun committee project. o that served as bring g about about chairman of reclamation devel- out objection, the resolution (S. Res, 221) the a two-county construction opement including the tu of that particular divi- great Central Valley is agreed to. siOri. project developed to meet the serious water Though Judge Carr died in 1944, I can shortages in the San Joaquin Valley and Sacramento Valley of California. The Sec- BILL AND JOINT RESOLUTION testify, as a sponsor of legislation au- retary of the Interior is hereby directed to INTRODUCED thorizing the Trinity River project in place a suitable plaque at the site. Any law, A bill and a joint resolution were in- 1955, that the efforts of Judge Carr on regulation, document, or record of the troduced, bill read the first time, and, in- behalf of this project were indeed of cru- United States in which such powerhouse cial importance in bringing this project is designated or referred to shall be held to unanimous consent, the second time, and for the people into being. refer to such powerhouse under and by the referred as follows: Judge Carr advocted building Whis- name of Judge Francis Carr Powerhouse. By Mr. HUMPHREY: keytown Reservoir in Shasta County as The resolutions presented by Mr. S. 2278. A bill for the relief of Elmer O. apart of developing the tributaries of the KUCHEL are as follows: Erickson; to the Committee on Post Office and Civil Service. upper Sacramento River for flood con- RESOLUTION 63-95 By Mr. KUCHEL: trol and water conservation as a part of Resolution of endorsement by - the Board S.J. Res. 130. Joint resolution to designate the project. That reservoir is now of Supervisors of the County of Shasta, the powerhouse on Clear Creek at the head emerging as a fine recreational asset. State of California of Whiskeytown Reservoir, in the State of A part of this project is the 130,000- Whereas the contents of the attached re- California, as Judge Francis Carr power- kilowatt capacity Clear Creek Power- solution of the Greater Redding Chamber house; to the Committee on Interior and In- of Commerce re u sular Affairs. house near Redding and a short distance q esti the senate and (See the remarks of Mr. KUCHEL when he from Shasta, Calif., the historic settle- Introduced the above joint resolution, which ment where nearly a century ago Judge States of America in Congress assembled appear under a separate heading.) Francis Carr's father, a pioneer lawyer to designate the 130,000-kilowatt capacity powerhouse on Clear Creek and teacher, first established his home at the head of Whiskeytown Reservoir as the Judge Francis RESOLUTION after moving to California from upstate Carr Powerhouse and direct the Secretary New York. This powerhouse, at the of the Interior to place a suitable plaque INQUIRY INTO FINANCIAL OR BUSI- head of Whiskeytown Lake, is already at the site to make known the wishes of NESS INTERESTS OF ANY OFFI- producing power which helps to defray the Congress has been made known to the CER OR EMPLOYEE OR FORMER project costs and to provide a return on Board of Supervisors of the County of Shas- OFFICER the Federal Government's investment. ta, State of California; and OR EMPLOYEE OF THE It is fitting, I think, that the Clear Whereas the Board of Supervisors of the SENATE Creek Powerhouse, largest of the Trinity County of Shasta are in accordance with Mr. JORDAN of North Carolina, from River division, with its constant energy the w, therefore, be itssed in said resolution: the Committee on Rules and Adminis- output, be named for and dedicated to Resolved, That the Board of Superviors tration, reported an original resolution Shasta County's native son, the late of the County of Shasta, State of California, (S. Res. 221) authorizing the expendi- Judge Francis Carr, who served with do hereby place their endorsement upon ture of funds by the Committee on Rules tireless energy to achieve an exceptional said resolution. and Administration in discharging its record of public service, including the Attest: responsibilities under Senate Resolution development of California's water and FLOYD H. MORGAN, 212, inquiry into the financial or busi- power. Chairman. ness interests of any officer or employee Mr. President, I introduce, for appro- County RICHARD C. County N, or former officer or employee of the Sen- priate reference, a joint resolution by Clerk. ate, which was considered and agreed to. which the Congress would designate a RESOLUTION OF THE GREATER REDDING CHAM- (See the above resolution printed in 130,000-kilowatt-capacity powerhouse on DER OF COMMERCE full when reported by Mr. JORDAN of Clear Creek at the head of Whiskeytown Whereas the dams and powerhouses of the North Carolina, which appears under the Reservoir in Shasta County, Calif., as Trinity River division of the Central Valley heading "Reports of Committees".) the Judge Francis Carr Powerhouse, and project in California are nearing completion, Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD SEN TE November 1 and the 130,000-kilowatt capacity Clear Creek and other Senators) (No. 280) to House powerhouse near Redding, Calif., at the head bill 7885, supra. which was ordered to lie of Whlskeytown Lake, is already producing on the, table and to be printed. power which helps defray project costs and Mr. TH RMOND Mr. President, I ' a provide a return on the Federal Government investment; and Whereas the late Judge Francis Carr, of Redding, Calif., a water lawyer for more than 40 years, was the principal advocate for several years of the Trinity River project, serving as chairman of a two-county com- mittee to bring about its construction and also in the early 1940'x, prior to his death in 1944, advocated building Whiskeytown Reservoir as a part of developing the tribu- taries of the upper Sacramento River for flood control and water conservation: and Whereas the late Judge Francis Carr was appointed In 1932 by Gov. James Roiph. Jr.. to the State water resources commis- sion, which commission helped develop a plan and obtained legislative support for California's great Central Valley project on which construction began In 1935 to meet serious water shortages in California's Ban Joaquin Valley and serve other multiple pur- poses: and Whereas In addition to his distinguished record of public service In varied fields for both Republican and Democratic State ad- ministrations, Including service as chairman of the State relief commission during the discouraging days of the depression In the 1930's, Judge Francis Carr, as be was affec- tionately known for his onetime service as justice court judge, was one of California's outstanding attorneys In the water and power field and successfully litigated several prece- dent-setting cases in California water law; and Whereas Clear Creek Powerhouse of the Central Valley project Is located a short dis- tance from Shasta. Calif., the historic settlement where, nearly a century ago, Judge Francis Carr's father, a pioneer lawyer and teacher, first established his home after mov- ing to California from upstate New York; and Whereas it is most fitting and proper that the Clear Creek Powerhouse, largest or the Trinity River division, with its constant energy output, be named for and dedicated to Shasta County's native son, the late Judge Francis Carr, who loved his native country, serving her and her people with tireless energy to achieve an exceptional record of ( alifornia's water and power resources: Now, 'N' N therefore, be it Resolved by the Greater Redding Chambef to the Senate and House of Representatives of the United States of America In Congress assembled that they do hereby designate the 130,000-kilowatt-capacity powerhouse on Clear Creek at the head of Whlskeytown Reservoir as the Judge Francis Carr Power- house and direct the Secretary of the In- terior to place a suitable plaque at the site to make known the wishes of the Congress. ROBERT C. ANDERSON. President of the Greater Redding Cham- ber of Commerce. FOREIGN ASSISTANCE ACT OF 1963 - AMENDMENTS (AMEND- MENT NOS. 284, 285, 286, 287, 288, AND 289) Mr. ELLENDER submitted six amend- ments, intended to be proposed by him. to the bill (H.R. 7885) to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes, which were ordered to lie on the table and to be printed. Mr. HOLLAND proposed an amend- ment (No. 290), to the amendment sub- mitted by Mr. MANSFIELD (for himself submit, and ask to have printed, an amendment (No. 291). I submit, and ask to have printed, an amendment to HR. 7885. The purpose of this amendment is to delete from the bill in its entirety section 402 which authorizes the President to grant most- favored-nation treatment to countries within the Communist bloc. I do not believe there is any justifica- tion for this provision, and I intend to have more to say concerning it when I call this amendment up for considera- tion. The PRESIDENT pro tempore_ The amendment will be received, printed, and lie on the table. Mr. DOMINICK. Mr. President, I submit an amendment to House bil: 7885. The amendment is designed tc asssur that the Appropriations Commit- tees will have the right to review the por- tion of the Development Loan Func which consists of receipts which com( back from loans which have previously been made. The PRESIDENT pro tempore. Thf amendment (No. 292) will be received printed, and lie on the table. Mr. YOUNG of Ohio. Mr. President I submit an amendment to House bil 7885. and ask that it be printed and Iii on the table. In support of my amendment, I quote from John Gunther. who in his Brea book. "Inside Europe Today," wrote: It is dangerous for a democracy, like th.r United States, to become too closely tnvoivet. with a dictator or a semidlctator, no matte' how convenient this may seem to be. It I I the people who count in the long run, anti no regime Is worth supporting if It keeps citizens down-if only for the simple reason that they will kick It out to time. The PRESIDENT pro tempore. Th amendment (No. 293) will be receives, , and lie on the table. 3 EDF.RAL EMPLOYEES' SALARY AC`.' OF 1963-AMENDMENT (AMEND . MENT NO. 283) Mr. WILLIAMS of Delaware (for him- self, Mr. LAUSCnz, Mr. DOMI ICK, M. TOWER. Mr. COTTON, and Mr. THux- MOND) submitted an amendment, in- tended to be proposed by them, jolntl:', to the bill 'H.R. 8986) to adjust the rates of basic compensation of certain officei s and employees in the Federal Govcrr. - ment, which was referred to the Corr.- mittee on Post Office and Civil Service", and ordered to be printed. ADDITIONAL COSPONSOR OF S. 224 9 TO CREATE THE INDIANA DUNE 3 NATIONAL LAKESHORE Mr. DOUGLAS. Mr. President, I a:.k unanimous consent that the name of ti- e senior Senator from West Virginia CM,,. RANDOLPH] be listed as a cosponsor it S. 2249, the bill to establish the Indtara Dunes National Lakeshore, and that h s name be added to the bill at the ne: t printing. The PRESIDENT pro tempore. With- out objection, It is so ordered. NATIONAL ECONOMIC CONVERSION ACT'-ADDITIONAL COSPONSOR OF BILL Mr. HUMPHREY. Mr. President, I ask unanimous consent that, at the next printing of the bill (S. 2274) to estab- lish a National Economic Conversion Commission, and for other purposes, in.y name be added as a cosponsor. The PRESIDENT pro tempore. With- out objection, it is so ordered. ADDITIONAL COSPONSORS OF BILL AND CONCURRENT RESOLUTION Under authority of the orders of the Senate of October 24, 1963, the following names have been added as additional cosponsors for the following bill and concurrent resolution: S. 2259. A bill to further amend section 24 of the Federal Reserve Act, as amended (12 U.S.C. 371). to liberalize the conditi?mns of loans by national banks on forest tracts: Mr. AIwEN and Mr. MCCARTHY. S. Con. Res. 65. Concurrent resolution favoring agreements with other nations for the joint exploration and use of space and to place a man on the moon: Mr. BARTL Mr. McGEE, and Mr. RANDOLPH. NOTICE OF HEARING ON NOMINA- TION OF CHARLES H. TENNEY, TO BE U.S. DISTRICT JUDGE, SOU'I'H- ERN DISTRICT OF NEW YORK Mr. JOHNSTON. Mr. President, on behalf of the Committee on the Judici- ary, I desire to give notice that a public hearing has been scheduled for Friday, November 8, 1963, at 10:30 a.m., in room 2228, New Senate Office Building, on the nomination of Charles H. Tenney, of New York, to be U.S. district judge, southern district of New York, vice Alex- ander Bicks, deceased. At the indicated time and place, per- sons interested in the hearing may make such representations as may be per- tinent. The subcommittee consists of the Sen- ator from Mississippi [Mr. EASTLAND], chairman, the Senator from South Caro- lina [Mr. JOHNSTON], and the Senator from New York [Mr. KEATING). ADDRESSES, EDITORIALS, ARTI- CLES, ETC., PRINTED IN THE APPENDIX On request, and by unanimous con- sent, addresses, editorials, articles, etc., were ordered to be printed in the Ap- pendix, as follows: By Mr. RANDOLPH: Address by Dr. Shane MacCarthy in ac- cepting the Cosmopolitan Club's Distin- guished Service Medal Award, October 22, 1983, in Washington, D.C. Editorial, "B. & O. Deserves Our Applause," In the Thursday, October 31, 1983, issue of the Morgantown (W. Va.) Dominion-News; correspondence between Senator RANDOLPH and Mr. Jervis Langdon, Jr., president of the Baltimore & Ohio Railroad. By Mr. BYRD of Virginia: Statement delivered before the Senate Committee on Finance by Steve Stahl, on Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 A6902 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - APPENDIX November 6 argument against the comparisons being cited as justification for the salary increases proposed. The Vast: Amount of Money Gambled Every Year in the 24 States That Have Parimutuel Betting EXTENSION OF REMARKS OF HON. PAUL A. FINO OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Wednesday, November 6, 1963 Mr. FINO. Mr. Speaker, for the past several months, I have brought to the attention of the Members of this Con- gress the vast amounts of money gam- bled, legally and illegally, every year in each of the 24 States that have pari- mutuel betting. I have discussed in a series of 24 state- ments inserted in the CONGRESSIONAL RECORD, the panorama of gambling and crime in these States and how we have, because of our stubborn refusal to open our eyes to the bold print of common- sense, turned this Nation into a gam- blers' paradise. We have, Mr. Speaker, thanks to the hypocrites and the bluenose moralists, helped the underworld crime syndicates to fatten themselves from untapped gambling revenues and allowed them to expand their illicit activities into a na- tionwide web of dirt. We have permitted gambling in the United States to grow into a gigantic tax-free $100 billion a year monopoly which has supported and will continue to support, unchained and uncontrolled, every filthy ramification of underworld activity. We have, by permitting this tax-free business to fall into the hands of the crime syndicates, heavily subsidized the forces of organized crime which, in turn, has corrupted the processes of law en- forcement and government. We have paid and will continue to pay a steep price for the foolishness and blindness of those who refuse to recog- nize and control the natural human urge to gamble. We have made America the playground of crime syndicate opera- tions. Mr. Speaker, it is very difficult for .our hard-pressed taxpayers to understand our Government's sanctimonious atti- tude about gambling when we know that gambling is a $100 billion.a year indus- try which is the chief source of revenue to the underworld. Our entire ostrich- like attitude is beyond human compre- hension. Only a Government-run lottery can legally satisfy the American thirst to gamble-only a Government-operated lottery can shut off this tremendous flow of billions of dollars to the underworld mob-only Government regulation and control of gambling through a national lottery can cut into these billions of dol- lars now siphoned off by the crime syndicates. The time has come, Mr. Speaker, to ex- change our rose-colored glasses of wish- ful thinking for the more accurate lenses of financial and social reality. Just as repeal of prohibition brought an end to the bootleg era and tremendous new revenues to our Treasury, so would the end of hypocrisy in our treatment of gambling strike a lethal blow at organ- ized gambling and pump a substantial part of these moneys into our Govern- ment coffers. In 1962 24 States, listed below, enjoyed a total parimutuel turnover of $3.7 bil- lion which brought into State treasuries legally, over $288 million. According to the testimony before the McClellan com- mittee, 161/2 times as much money is wagered off the racetracks on horses as is bet on the tracks. The total national offtrack betting turnover allocated to these 24 States is estimated at over $281/2 billion. This, according to the McClellan hearings, represents only 42 percent of the total illegal gambling in these States. It can be estimated therefore, that the total illegal gambling in all 24 States ap- proaches about $60 billion. Out of these funds, almost $6 billion-10 percent of the total turnover-goes right into the filthy pockets of the gambling crime syn- dicates. How much longer are we going to con- tinue to subsidize the forces of organized crime? How much longer are we going to keep the crime syndicates fat and happy? How much longer are we going to continue to make America the gam- blers' paradise? What are we waiting for? State Parimutuel turnover, 1962 Esthnate off-track betting in 1962 Illegal gambling estimate 10 percent profit to crimp syndicate State Pa ver, 1el962 turnover, 1 Estimate off- betting track in 1962 Illegal estim ate gambling 10 percent to criprofitme syndicate Millions 0 3 Millions $750 Millions $75 a________ N 14 --------- $41,626,636 Millions . $390 Millions $800 Millions $80 1. Arizona -------------------- Arkansas 2 $21,454,342 112,950 24 6 $ 495 1,000 100 ow Il . 16. Now IIampshirc---------- _ 81,659,976 105 214 324 170 680 1 350 3 500 35 350 __________________ . 3. California__________________ , 522,046,261 4,360 0,000 900 100 16. New Jersey________________ New Mexico 17 - -- , , 36,693,249 , 290 , 600 60 4. Colorado___________________ D l 16,013,019 216 666 97 490 125 1,000 250 25 . ----------- - 18. NowYork ----------------- 1,127,023,764 2 4,650 695 2 10,000 000 5 1,000 500 aware_______________ r,. e 6. Florida-------------------- , , 157,796,388 1,375 3,000 300 560 10. Ohio________.___._____.._-- 20 Ore on . 138,340,64 370 11 360 , 495 , 1,000 100 7. Illinois_____________________ _ 342,620,765 920 587 57 2,795 845 6,600 2,000 200 . g -------------------- 21. Rhode Island -------------- , , 95,026,350 235 300 350 50 35 . Kentucky ___ _ ____________ 8 9. Kentuana__________________ , , 45,672,223 005 2,000 200 60 22. South Dakota ------------- 23 Washington 4,409,922 27,088,602 175 790 1,500 150 10. Maine--------------------- l d M 15,332,728 147 160 674 295 860 600 2,000 200 --------------- . 24. West Virginia______________ 90,689,481 520 1,100 7.1.0 _________________ an 11. ary 12. Massachusetts_____________ , , 109,499,421 3 1,425 2 190 3,000 000 6 300 690 Total____________________ 3,669,463,825 28,625 59,900 5,990 13. Michigan__________________ 120,721,67 , , U.N.: Soviet Spy Center EXTENSION OF REMARKS OF HON. H. R. GROSS OF IOWA IN THE HOUSE OF REPRESENTATIVES Wednesday, November 6, 1963 Mr. GROSS. Mr. Speaker, the recent apprehension by the FBI of two members of the Soviet delegation to the United Nations as participants in a spy plot of- fers further evidence that Russia uses the U.N. headquarters in New York pri- marily as a center for espionage. In this regard, I desire to include an excellent editorial appearing in the No- vember 1, 1963, issue of the Waterloo (Iowa) Daily Courier: A new high in arrogance was reached this week when two Soviet diplomats, attached to the Soviet delegation to the United Nations, were apprehended by the FBI for participa- tion in a spy plot. "The conduct of the FBI- agents was very rude," Yuri A. Romashin, third secretary of the Soviet U.N. mission, declared. This, we assure you, does not bring tears of shame to our eyes. Imagine. The FBI agents were rude. They were so crude as to believe that an official who enjoys diplomatic immunity should not abuse the privilege. Hardly less insolent was the remark of John William Butenko, the naturalized American engineer who is accused of turning over de- fense secrets to the Russians. He complained about the photographers who appeared at the arraignment before the U.S. Commissioner. "If they keep on taking pictures they're going to ruin my life," he declared. We doubt if the photographers were overcome by remorse. Extensive evidence that most if not all Soviet personnel with diplomatic immunity at the U.N. are engaging in espionage raises questions about the hazards of having the United Nations located in this country. For the presence of U.N. headquarters in New York means that the Soviet Union has a rea- son for keeping far more diplomats in this country than could otherwise be justified. The United Nations is useless unless the participating governments use it as a means of resolving differences. The Russians are using it largely as a spy center. Groggy Lumbermen Face New Cost Hike EXTENSION OF REMARKS OF HON. JACK WESTLAND OF WASHINGTON IN THE HOUSE OF REPRESENTATIVES Wednesday, November 6, 1963 Mr. WESTLAND. Mr. Speaker, the unemployment rate in my State of Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 gress approve a strong civil rights Drummond. taken from the Washington program. Post of Monday. November 4, which I I take this opportunity to insert the think will be of considerable interest to resolution in the CONGRESSIONAL RECORD. my colleagues in the House: The board of trustees of the Unitar- FArrnsLL TO PARTY: HALLECK DIDN'T SELL ian Universalist Association, recognizing Our ON RrcHTs the seriousness of the deep racial crisis (By Roscoe Drummond) which has gripped the United States in The ;tory Is going the rounds that on the recent months and weeks, and reaffirm- sunny morning after he had done so much ing the traditional concern of Unitarians to rescue the civil rights bill and assure it and Universalists for the supreme worth Republican support, House minority leader of every human personality, the dignity CIARLFC HALI.ECK found an odd gift perched of man, and the use of the democratic ominously atop his desk: A big black um- method hi human relationships, respect- brella a Is Neville Chamberlain. apocryphal, fully urges that the Congress of the the Meaning the Is the same-that eeisretlsomeone is Is United States enact meaningful, com- accusing HAU.KCK of selling out to the Demo- prehensive civil rights legislation to re- crats, of throwing away an opportunity to dress the legitimate grievances of the haraw the Kennedy administration bystymy- Negroes and members of other minority Ing civil rights. groups. The implication of this Munich-esque To this end, we endorse the substance charge is that HALLECK in giving his backing and intent of H.R. 7152 and S. 1751 to to the bipartisan civil rights bill is deserting Republican Party policy, strengthen voting rights, make discriml- Such a charge is inaccurate, untrue, and nation in public accommodations unlaw- unfair. HALI.rc.K Is Implementing Repub- ful, speed public school desegregation lican policy. His politics-at-an - rice R e A6901 EXTENSION OF REMARKS OF HON. H. R. GROSS OF IOWA IN THE HOUSE OF REPRESENTATIVES Wednesday, November 6, 1963 Mr. GROSS. Mr. Speaker, the fact that the pay of high-ranking Govern- ment officials does not match the salaries of many corporation executives has be?n cited as justification for enactment of pending legislation to provide lush pay increases for the top brass of the execu- tive and judicial branches of Gover:.3- ment and Members of Congress. The absurdity of this argument is iI- Iustrated in an editorial in the November 1. 1963 issue of the Waterloo (Iowa) Daily Courier. I commend the editorial to the attention of my colleagues: I p GOVERNMENT NEVER WILL MATCH PRIVATE establish a Community Relations Serv- publican critics are not. ice to mediate racial disputes, extend the The Republican record in Congress, the SALARIES Re ublican commitments in its 1960 na- A pay raise bonanza for all Federal execu- life of the U.S. Commission on Civil Clonal platform and the majority views of five of iclals and Members of Congress has Rights for 4 years and give it added the Republican Members of the House of been voted out of the House committee. responsibilities, authorize Withholding of Representatives all prove that HALLzcK, far This bill would increase the pay of Sn- Federal funds from programs that are from shoving civil rights down the throat preme Court justices from $35,000 to $45,000. administered in discriminatory fashion: of his party, is to fact acting faithfully In It would raise the pay of the Vice Presi- and establish as a permanent Commis- behalf of established party policy. Here is dent and the Speaker of the House from sion the President's Committee on Equal the record: $35,000 to $45,000. Employment Opportunity. On the passage of the first civil rights bill Pay of cabinet officers would be increased In 80 years-in 1957-House Republicans from $25.000 to $35,000. We urge especially that the Congress voted 151 for, only 15 against. (The Demo- Members of Congress would receive $32,000 erase the humiliation which accompan- cratic vote was 128 for. 82 against.) On the In place of the present $22,500. ies the members of minority groups same bill Senate Republicans voted 37 for, It can be demonstrated, of course, that the when they are refused accommodations none against. (Senate Democrats voted 23 pay of top governmental executives does not or service in hotels, motels, restaurants, for. 15 against.) match that paid to corporation executives. business establishments or places of The next civil rights bill was in 1959. This Some school superintendents and colIer:e amusement. and that a public accommo- time House Republicans voted 80 for, 8 presidents are paid more than cabinet of- against (House Democrats voted 141 for, ficials with much greater responsibilities. dations law cover all establishments, of 73 against.) On the same bill, Senate Re- Some union international presidents are whatever size. publicans voted 28 for, I against. (Senate paid more than Members of Congress. In addition, we urge that amendments Democrats voted 43 for. 17 against.) But there Is another side of the story, be made to the bill to add a permanent HAW.ECK is acting in accord with this Justices of the Supreme Court are appointed Fair Employment Practices Commission party record. for life and earn a guaranteed salary until to cover hiring, firing, and promotion in The 1960 Republican national platform retirement age without penalty for declining all types of employment and member- committed the party as follows: "We pledge mental or physical capability. The record ship in labor organizations engaged - the full use of the power, resources, and lead- does not show that any outstanding jurists crship of the Federal Government to eliml- have turned down a Supreme Court appoint- interstate commerce. And, further, that hate discrimination based on race, color, ment because the salary was inadequate. the bill be amended to give the U.S. At- religion. or national origin." Likewise, the Government has been able torney General power to bring civil suits HALLEi:x is helping his party to carry out to obtain the services of many top execu- in all cases where Americans are denied this pledge. tives from business without offering them a their constitutional rights because of Early in this session of Congress-In Janu- comparable salary. The Secretaries of De- race or religion. ary, well ahead of any action by the White fense under both the Eisenhower and Ken- The civil rights 11ouses--12 House Republicans took the Inf- nedy administrations were formerly top ex- program before the tiative to jointly introduce a wide-ranging ecutives in the automobile industry. Congress represents minimal objectives civil rights bill. In June, still ahead of the It would be wrong to remunerate these at this critical point in our Nation's his- White House. 31 House Republicans added a men Inadequately simply because they are tory. One hundred years after the further civil rights measure. willing to accept a Government job as a Emancipation Proclamation, the Ameri- Last week Representative WILLIAM M. public service. But it is unlikely that the can Negro finds that in education, in McCVLLOCH, of Ohio, ranking Republican 3overnment would ever pay a salary com- employment, in housing. In the exercise member of the House Judiciary Committee, mensurate with what they could earn lit of his rights of citlzenShip, he is still a and GOP Representative JOHN LINDSAY, of private business. Even with the big sal- New York, salvaged civil rights from hope- try increase proposed, such men could be second-class citizen. The Congress less deadlock by negotiating the terms of recruited only because of their desire to should therefore act this year to bring a strong bill capable of winning decisive serve the public and because of the prestige to fulfillment the promise of the Eman- bipartisan support. nvolved. cipation Proclamation. It was this bill to which HALLECK gave his There Is no objective yardstick of what a. Halleck Didn't Sell Out on Rights indispensable support. From the whole rec- Dan is worth. The only basis for deter- ord it is obvious that he is not acting to :nining salaries is what must be paid to get impose a civil rights position on a reluctant ' ompetent men and women. If we are to party but Is responding to Republican Initia- udge the fairness of Government salaries Clue. in relati t I on o ncome in the private sector of EXTENSION OF REMARKS The Republican actions cited above not he economy, then the President of the Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1 .1 HON. WILLIAM L. SPRINGER OF ILLINOIS only solidified the Republican Party at this United States should be paid as much as session, but helped to encourage and stimu- : 'aul Getty or other multimilllonalres. late the White House to pursue a more active This indicates the absurdity of basing Gov- course than was visible before the antidis- t rnment salaries on such a comparison. If culmination demonstrations. Since then I ay is the only way to get competent men in Mr. Kennedy has boldly galvanized his own (lovernment service then the Govern men Wednesday, November 6, 1963 party In Congress, i i always going to be out-bid by monetary The result: A bipartisan agreement which c pportunities outside Government. This is Mr. SPRINGER. Mr. Speaker, I puts the welfare of the Nation ahead of party r of necessarily an argument against Govern- attach herewith an article by Roscoe maneuver. rient salary increases but it Is an effective Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1963 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD- SENATE 20501 knows, already 'is bearing a heavy enough burden. An essential factor the committee has failed to recognize is that the purpose of Government is service whereas the pur- pose of industry is profit. If the goal is to try to match the pay scale of private industry, then we must accept the fact that this proposed bill is only the first installment, and that future requests will indeed make this present legislation look miserly. We should realize that the Federal Government can never match the sal- aries of private industry. We shall al- ways have to rely to a marked degree on many citizens to serve their Govern- ment as their lives' work. That is as it should be. It is fair to say that citizens generally wish public officials to be paid ade- quately. It would be foreign to our American way of life were Congressmen, for example, to be denied adequate com- pensation. It would be unfortunate were only men and women born to great wealth, or who had acquired great, wealth, able to afford to occupy public office, elective, or appointive. No one wants that. On the other hand in my judgment the House Post Office and Civil Service Committee has reportedly come forth with overly generous and, in fact, outrageously high salary recommenda- tions. Mr. President, because of my opposi- tion to a salary raid on the Public Treas- ury at this time, I have received criticism from some on the Federal payroll. It startled me somewhat that one of them, Representative WAYNE HAYS, of Ohio, ac- cording to newspaper reports, stated that both Ohio's Senators were not worth the increased salary proposed for Members of the Congress. . Mr. President, I ask unanimous consent that pertinent ex- cerpts from an article entitled "HAYS Says Ohio. Senators Are Not Worth Pay Increase," which appeared in the Cleve- land Press on October 31, 1963, be print- ed in the RECORD at this point as part of my remarks. There being no objection, the excerpt of the article was ordered to be printed in the RECORD, as follows:. HAYS SAYS OHIO SENATORS ARE NOT WORTH PAY INCREASE (By Thomas Talburt) WASHINGTON.-Congressman WAYNE HAYS, Democrat, of Ohio, says he understands why both of Ohio's Democrat Senators oppose a congressional pay raise. He says they're not worth it. HAYS, who's backing a proposed pay boost, said he'll offer an amendment to pay legisla- tors on a sliding scale from $5,000 to $35,000 a year and let each Member decide for him- self how much he is worth. "If my amendment passes and either Ohio Senator says he's worth more than $5,000, he could be tried for perjury," snapped HAYS. After placing rather dubious prices on the heads of Senators FRANK LAUSCHE and STE- PHEN YOUNG, HAYS was asked to evaluate his own performance. "I'm worth the maximum," he declared. "I'm sick of demagogs," HAYS added. "There are plenty of people in Congress who will vote against the bill and then be the first in line to get their checks. Senator YOUNG laughed when told of HAYS' comments, but offered no reply. LAUSCHE could not be reached. The pay bill approved by the House Civil Service Committee yesterday provides a $10,- 000-a-year raise for Senators and Congress- men, from $22,500 to $32,500. HAYS is hold- ing out for $35,000. This article by Tom Talburt, Wash- ington correspondent for the Scripps- Howard newspapers, contains the follow- ing specific statements made by Repre- sentative HAYS: Congressman WAYNE HAYS, Democrat, of Ohio, says he understands why both of Ohio's Democratic Senators oppose a congressional pay raise. He says they're not worth it. HAYS, who's backing a proposed pay boost, said he'll offer an amendment to pay legisla- tors on a sliding scale from $5,000 to $35,000 a year and let each Member decide for him- self how much he is worth. "If my amendment passes and either Ohio Senator says he's worth more than $5,000, he could be tried for perjury," snapped HAYS. After placing rather dubious prices on the heads of Senators FRANK LAUSCHE and STEPHEN YOUNG, HAYS was asked to evaluate his own performance. "I'm worth the maximum," he declared. My first acquaintance with the gentle- man from the 18th Ohio District was in January 1949, when he came to Wash- ington as a first term Representative. At that time, I was serving my fourth term as a Member of the House of Repre- sentatives and had been elected to mem- bership of the Committee on Ways and Means which is the committee on com- mittees of that body. As a member of that powerful committee, I was assigned the duty of recommending committee as- signments for freshman Congressmen from Ohio, West Virginia, Indiana, and Michigan and for Congressmen from those States who desired to make a change of their committee assignments. Of course, I talked with the Democratic leaders of those four State delegations in my endeavor to help my Democratic col- leagues secure committee assignments to their liking. Representative HAYS asked me to try to. have him placed on the Committee on Foreign Affairs, then as now, a blue- ribbon committee of the other body, I spent time and effort in conferences, and recommended my new colleague. He was later selected for membership on the Committee on Foreign Affairs. I did my best for "him in 1949. It is true that I have not done anything for Representative HAYS lately. He .has been a very fine and effective Represent- ative, representing Ohio and the Nation. I understand that his work on the House Committee on Foreign Affairs is out- standing, and that his frequent travels overseas have broadened his knowledge of foreign affairs and have won for him the agnomen, "Ohio's Marco Polo." His most recent trip to London and Paris has been well publicized. Ten Members of the other body made this trip to the In- terparliamentary Conference in Paris. Meanwhile the other body continues in session, but has not acted upon the im- portant administration medicare bill, to call attention to one omission on the part of that body. Unfortunately, because of tax features of this legislation the Senate cannot pass needed hospital and nursing home insurance without social security, commonly termed "medicare," until it is first passed in the House of Representa-' tives. My Ohio colleague is quoted as having said, "If either Ohio Senator says he is worth more than $5,000, he could be tried for perjury." I will give that statement the charity of my silence. Furthermore, to the evaluation: of his own perform- ances and his statement that he is worth the maximum I shall not disagree. Without a doubt he is an expensive and valuable Member of Congress. Mr. President, I am not opposed to a reasonable pay increase for some Gov- ernment officials and employees when it can. be shown they are deserving of it. Furthermore, althought I am opposed to the bill as introduced, I do believe that if it is reasonably amended, it is entitled to consideration. Furthermore, if salary increases are given to appointive bureaucrats and Federal judges, then the Members of the Congress should receive.equal considera- tion. It is certain that Senators and Representatives can have a much better case made for them for a pay-increase than can possibly be made for most ap- pointive officials. There is certainly more justification for a pay increase to Members of Congress than for U.S. judges and all appointive officials except certain Cabinet members. It appears to me that some provisions in the pay raise bill are really somewhat frightening. Do we want Washington bureaucrats to become America's new economic royalty? I hope that members of the Senate Post Office and Civil Serv- ice Committee and all Senators will look long and hard at this legislative proposal should it come to us from the House of Representatives. We should not enter into a race to have public service compete with private industry to determine which is more generous in payment of king- size salaries. We should not make the Public Treasury the private domain of public servants. Mr. MORSE. Mr. President, will the Senator yield? Mr. YOUNG of Ohio. I. am glad to yield. Mr. MORSE. I should like to bear wit- ness and give testimony to the fact that, in my judgment, the Senator from Ohio [Mr. Yourro1 is worth to the people of Ohio many times his salary, and I hope the people of Ohio will see to it that he continues to serve in the Senate for many more years to come. Mr. YOUNG of Ohio. I thank the dis- tinguished senior Senator from Oregon [Mr. MORSE]. I shall take my seat feel- ing very humble over the commendatory statement he has just made regarding me. AMENDMENT OF FOREIGN ASSIST- ANCE ACT OF 1961 The Senate resumed the consideration of the bill (H.R. 7885) to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes. Mr. MORSE. Mr. President, I should like to have the attention of the chair- man of the Foreign Relations Committee. As I said at the beginning of my speech on the pending amendment, No. 306, I Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SEN ATE Norenzber 1' hope that any modifications that will make it helpful and stronger, without sacrificing the main objective I have in mind can be agreed upon. The first Senator to speak to me about that was the Senator from Vermont [ Mr. PROUTY 1. He said it had been rep- resented to him that my amendment would prevent sales. I said I did not be- lieve it would, but if there were any question about it, it would have to be modified in order to remove any doubts. So, on the basis of that conversation. after I consulted with other Senators, I propose a modification of the amend- ment, as follows: (i) No funds shall be made available under this Act on or after the date of enactment of this subsection (except for military sales under section 503) to any economically de- veloped nation, except to fulfill firm com- mitments made prior to July 1, 1983. The President is directed to make no further commitments for assistance (except for mili- tary sales under section 503) to such eco- nomically developed nations- Then I drop out of the amendment the language on line 5, page 1, starting with the word "and"- and is directed to terminate such commit- ments made prior to July 1, 1983, at the ear- liest practicable time. The President is fur- ther directed to report, not later than July 1. 1985. to the Speaker of the House and to the Senate Foreign Relations Committee on the steps which he has taken to comply with this provision. This I agreed to do because the amendment, in this form, will accom- plish the main objective. The main dif- ference between my amendment and the language of the bill as it came from the committee is that my amendment seeks to prevent longtime loans to countries which really do not need loans, countries which are self-sufficient. We should be making loans to countries that need loans. As the chairman knows, there Is concern as to whether the amendment would interfere with the short-term credit loans for sales. Some countries wish to buy equipment, and AID makes them a short-term credit loan. That helps in regard to the balance-of-pay- ments problem, and that is why I re- drafted the amendment. But as to the other loans, as the chairman pointed out to me in a conference with him, they are not making such loans now. They have in the past. Of course, they could in the future. I just cannot believe-and that is why I make the legislative his- tory-that they would return to making the other type of loan in view of the lan- guage in the bill as reported by the committee and the debate we have had on the subject matter. The chairman of the committee ought to know we have been trying to work out an amendment that would be acceptable. Mr. CHURCH. Mr. President, will the Senator yield? Mr. MORSE. I yield. Mr. CHURCH. First, let me say that we do. indeed. share a common objec- tive. I think it is shared by the distin- guished chairman of the committee as well. That objective is to put an end to the AID program to rich and fully self- sufficient countries. To that end. the committee adopted an amendment I of- fered- -for I have long been interested in elimin,:tting this defect In the foreign aid program-which appears on page 47 of the committee print, beginning on line 15, and reads as follows: No 3--sistance shall be furnished on a grant basis u Eder this Act to any economically de- velopod nation capable of sustaining its own defense burden and economic growth except (1) to fulfill firm commitments made prior to July 1. 1963, or (2) additional orientation and training expenses under part If hereof during fiscal year 1964 In an amount not to exceed 41,000,000. The two exceptions seemed highly de- sirable the first, because we must honor our prior commitments, since the United States keeps Its word: and the second, be- cause we deemed it wise to permit a year's time within which to transfer the orientation and training courses from the foreign aid program into the military budget, where they properly belong. This language allows for transition pe- riod during which the change in budget- ing procedures can be accomplished. I think It Is very Important that the Senator from Oregon Is making legisla- tive history on the question of long-term economic loans. I understand it to be the Polley of this administration not to extend such long-term loans to rich countries. However, I think it should be made perfectly clear that it is intent of Congress also that no further long-term loans should be made to countries fully capable of furnishing their own capital. So I commend the Senator from Ore- gon for the legislative history he Is mak- Ing. But we should be careful to make certain that short-term credits are not foreclosed. because today we are export- ing abroad. for cash or short-term credit, a billion dollars worth of military equip- ment and supplies, which Is very Im- portant to our adverse balance-of-pay- ments problem. We do not want to cut off the very countries which are the prin- cipal purchasers of American military equipment and supplies. I think we can accomplish our common objective-and I have consulted the Sen- ator from Oregon, who has been most cooperative In trying to arrive at satis- factory formula-by holding to the lan- guage which I offered, and which the committee adopted, but borrowing from the amendment, as modified, that is now pending?, offered by the senior Senator from Oregon, that language which de- fines an economically developed nation, making one change. The suggestion I make is that begin- ning on page 47, following the figure "$1,000.000" on line 21, we add the fol- Iowingc paragraph: As used in this subsection, the term "eco- nomically developed nation" shall include, but need not be confined, to any nation list- ed as an exception to the definition of "eco- nomically less developed nation" contained in United Nations General Assembly Resolu- tion 1875 (3. IV) and, In addition, the Ger- man Federal Republic and Switzerland. For the information of the Senate, I may say that the nations listed in the cited United Nations General Assembly resolution Include all of the clearly self- sufficient, recovered, prosperous nations that both the Senator from Oregon and the Senator from Idaho wish to strike from our foreign aid list. I think, with the legislative history that the Senator from Oregon has so ably made, this addition, by more clear- ly defining the countries we have in mind, but leaving it open for the addi- tion of other countries that may become self-sufficient in the future, will accom- plish our objective, and improves the language the committee has adopted with this objective in mind. I would suggest to the Senator from Oregon that he join me in offering this language as a substitute for the amend- ment now pending. I am hopeful that the distinguished chairman of the com- mittee will accept this addendum to the language which the committee prevlou,>- ly approved. Mr. MORSE. I will join the Senator from Idaho in offering the amendment as a substitute for my amendment. It accomplishes our main objective. The legislative history makes clear to the administration our attitude. We hope there will not be a reopening of long- term economic loans which are no longer being made. Also, it will serve notice on the administration that Congress hopes something can be done with regard to some of the commitments already made, although we have to keep those commitments if we cannot reach an un- derstanding in those instances where understandings are due. Many of these countries, for example, are not keeping their United Nations commitments. Furthermore, as the chairman of the committee knows, in committee many of us have expressed from time to time our views about having to put money into infrastructure in Europe; but we are committed to it. I do not know how we can reach that problem. We should not be paying for infrastructure in France or any other self-sustaining nation. Perhaps this history will be helpful to the administration in connection with some of its diplomatic economic rela- tions with those countries. Therefore, I shall be glad to join the Senator in offering the proposal as a substitute for my amendment, if the chairman is willing to take it to con- ference. Mr. FULBRIGHT. Mr. President, I am quite willing to take it to conference. I think it is a very good substitute. I am sure It will be agreeable to the other members of the committee. I am glad to accept the substitute. Mr. CHURCH. I thank the Senator. Mr. President, on my own behalf and that of the Senator from Oregon, I send to the desk a substitute amendment, and ask that it be read. The PRESIDING OFFICER. Does the Senator from Oregon withdraw his amendment? Mr. MORSE. Mr. President, if I may, I am going to send to the desk my amend- ment, as modified, that I discussed. It ought to be in the RECORD, and I ask unanimous consent that it be printed in the RECORD at this point. There being no objection, the amend- ment was ordered to be printed in the RECORD, as follows: Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENATE is another instance of most-favored-na- tion treatment; and to me, for some in- explicable reason, the "most favored na- tion" is to be one in the Communist bloc, instead of one of our allies or our friends. It is proposed that our Government guarantee the full payment of the loans. What a strange departure from the orig- inal White House statement, which was that we were to be paid in gold or in cash or in short-term credits. But Un- cle Sam, not the private lending insti- tutions, is to take the risk of these sales. The private lenders, however, instead of Uncle Sam, will make the profit on them. If there is a default on any creidt ex- tended for the sale of this wheat, it will be the American taxpayer, or good old "Uncle Sucker," who will take the loss, not the private banking institutions, since they will be protected by the ad- ministration's decision from any loss of dollars. My amendment would prohibit this kind of financial shenanigan. It would prohibit the Export-Import Bank or any other agency of Goyernment from guaranteeing repayment of these cred- its extended by private American bank- ing institutions to Communist countries. It would insure that the wheat and other grain sales are strictly consummated through private channels, as the Pres- ident said they would be; and without Government support, as the President said would happen; and that the grain trade and private credit institutions would be undertaking and entering into such sales contracts at their own risk and for their own profit, not at the risk of the unsuspecting American taxpayers. The American taxpayer should not be asked or required to pick up the very substantial risk in these sales which many private grain traders now want to exploit. My amendment would pro- tect the overburdened taxpayers of America and would place American fi- nancial institutions who provide the credit in this instance on notice that these grain sales will be conducted on the same basis as sales negotiated in this country. Private credit will take the risks, make the profits, and stand the losses-if losses occur for any reason whatsoever. My President, I hope that when my amendment is offered, it will be adopted, so that sales of grain to the Communist bloc will not be at the ex- pense of the U.S. taxpayers in case the Communists default on their payments and violate still another one of their promises. Mr. President, if we are to continue to spend billions of dollars to strengthen the capacity of the free world to defend itself against Communist subversion and aggression, the least we can do as Sena- tors and as guardians of the interests of the American people is to make sure that our fellow taxpayers are not also charged with the expense of providing supplies to the Communist countries whose persistent attacks against free world security make these AID appro- priations or some other type of foreign assistance program necessary. My amendment would do precisely that-no more and no less. It would protect the American taxpayers against the very probable contingency that he will have to pay through the Export-Import Bank for the credits defaulted by Communist countries to which our wheat and grain are being sold. In my opinion, the whole concept of strengthening our enemies by selling them the supplies they need on credit terms which will safeguard their Com- munist economies, while at the same time spending billions of dollars strengthening the capacity of our friends to resist the encroachments of aggres- sive, atheistic communism, as we are be- ing asked to do by means of the present foreign aid and assistance bill, is a high- ly questionable and sadly inconsistent concept. It clearly indicates the need for the evolvement of a new type of U.S. foreign policy. Our constituents have the right to expect more construc- tive and more consistent action from their Senators than mere endorsement of such an inconsistent self-defeating program as involved in our prevailing foreign policy. Surely, the long record of broken prom- ises by the Communists does nothing to give them a high-grade credit rating. Once they have our merchandise, they can and will default on their payments with the same contemptuous disdain that they have demonstrated in their failure to pay the just debts they owe to us for previous credits and to pay the debts which today they owe to the United Nations and to the other free sectors of the world. It does not make good sense-in fact, it makes no sense at all-to use the funds of the United States to guarantee the credit and to un- derwrite the financial "good intentions" of the Communists. This is even more startling than appeasement; this is an endorsement of the checks and the notes to be utilized by the Communists in pur- chasing supplies to strengthen their ca- pacity to attack us. It is a startling anomaly. If we must sell them food and merchandise which I very much doubt- the least we can insist upon is that they pay cash for what they buy, or that those seeking a quick profit by selling to the Communists on long term credit assume responsibility for their own losses and for their failure to collect on credits ex- tended to those who so often have demon- strated their bad faith in one program and one promise after another. Let those who would make the profit assume the risk, Mr. President. Let us not try to compel all the taxpayers of the United States to underwrite the bad faith of the Communists, who seek to obtain from us the supplies, the food, and the fabric required in order to strength- en them in their mad desire to bury the free world and to destroy Christendom. I shall have more to say on this sub- ject when I call up my amendment. At this time I merely make this preliminary statement in the hope that Senators will read and study the amendment and ac- quaint themselves with the facts, and in order that the country generally may know what will be provided by the suc- cession of appeasing actions favorable to the Communists unless we take the opportunity provided by my amendment to call a halt to a suicidal program of that kind. Mr. President, I urge the adoption of my amendment in order to protect the American taxpayers against the neces- sity of being called upon to finance both sides of the cold war at the same time. It is bad enough that we are now beyond the $100 billion mark in helping to fi- nance the free side of the cold war. But now, when we are asked to go beyond the $100 billion mark and to appro- priate additional billions, we are told that the American taxpayers not only are to underwrite and support to that extent the free world, but also they are to finance the Communist side of the cold war by guaranteeing any debt the Communists incur in purchasing supplies from the United States. I ask Senators to consider seriously the ultimate con- sequence of such a reckless squander- ing of our country's resources. Mr. FULBRIGHT. Mr. President, some of the statements which have been made are quite inaccurate and are among the strangest interpretations of the facts I have ever heard on the floor of the Senate. I have had prepared a memorandum based upon an inquiry made some days ago of the Export-Import Bank. Last week I received an inquiry relative to an article published in the Washington Post. Mr. President, I shall read the last paragraph of the memorandum, in order to indicate what I mean: The Export-Import Bank stresses that there is nothing new in these arrange- ments-aside from the fact that a short- term credit risk is being covered with re- spect to a Soviet bloc country. In fact, the Bank has been making similar arrangements, on more liberal terms, with respect to sales of cotton ever since the Bank was established. In last July, for example, a $60 million sale of cotton to Japan was covered by 100-per- cent political and credit guarantees; no downpayment was asked and a lower inter- est rate was involved. The remainder of the memorandum deals with the specific conditions of these sales. I shall not take the time of the Senate to read the entire memorandum at this time, inasmuch as the amend- ment to which it it relevant is not now pending; but I believe it will be helpful, for the information of the Senate, to have the memorandum printed in the RECORD; and no doubt this question will be discussed further when the amend- ment is before the Senate. I ask unanimous consent that the memorandum be printed in the RECORD. There being no objection, the mem- orandum was ordered to be printed in the RECORD, as follows: MEMORANDUM: EXPORT-IMPORT BANK GUARAN- TEES OF SALES TO BLOC, NOVEMBER 6, 196$ The story in yesterday's Washington Post concerning the Export-Import Bank's guar- antee of a sale of corn to Hungary, and the Bank's readiness to extend similar terms with respect to other commodity deals with the Soviet bloc, contains at least two errors. First, as will be seen from the detailed ac- count below, the Bank is not covering 100 percent of the financing of the corn deal of about $6 million with Hungary, Second, Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 20500 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENnTE November 12 there is no "usual 50-50 practice" concerning guarantees. contrary to the newspaper story. The Export-Import Bank has announced terms which would be extended. If accepted. to any of the deals between American sup- pliers and Soviet bloc purchasers of com- modities. These arrangements are as fol- lows: The Bank is ready to Issue guarantees through U.S. commercial banks. The Bank itself will not grant any credits. It will Issue 100 percent guarantees against the political risks and full coverage of cer- tain credit arrangements which are made. However, these terms depend completely on the following conditions being met first: (1) The purchasing country must pay 25 percent of the purchase price in dollars to the commercial bank representing the sup- plier prior to shipment of the commodity: (2) a maximum of 18 months credit for the balance may be extended by the commercial bank: and (3) the balance of 75 percent of the purchase price must be paid In three equal installments at 8-month intervals dur- ing those 18 months-an interest charge of 5 percent is levied on this balance. In connec- tion with the above account. It should be understood that the buyer has to make con- tact with the American supplier, who then turns to a U.S. commercial bank. which in turn would go to the Export-Import Bank. The Export-Import Bank stresses that there is nothing new In these arrangements- aside from the fact that a short-term credit risk is being covered with respect to a Soviet bloc country. In fact, the Bank has been making similar arrangements, on more liberal terms, with respect to sales of cotton ever since the Bank was established. In last July, for example, a $60 million sale of cotton to Japan was covered by 100 percent politi- cal and credit guarantees; no downpayment was asked and a lower Interest rate was in- volved. PHQPOSED PAY INCREASE UNREAL- ISTIC I Ar. YOUNG of Ohio. Mr. President, within a short time the Post Office and Civil Service Committee of the House of Representatives will issue a report recommending salary increases for all three branches of the Federal Govern- ment-the executive, the judiciary, and the legislative. Last June 13 I spoke out in this Cham- ber and cautioned against the king-size salary increases recommended by the President's Advisory Committee. Un- fortunately, it appears that the bill soon to be voted on in the House of Repre- sentatives for the most part embodies these unrealistic recommendations. This legislative proposal if enacted into law will cost American taxpayers over $600 million a year. This is only the be- ginning. History teaches us we may be assured that within the next 2 years an- other pay increase bill will be requested. Also, as the Federal bureaucracy grows, the price tag for this increase will grow with it. Frankly, Mr. President, I believe that this proposed legislation would be a fan- tastic raid upon the Public Treasury. Long ago it was written: Enter ye the strait gate: for wide is the gate, and broad is the way that leadeth to destruction, and many there be which go In thereat: because strait is the gate, and nar- row is the way, which ieadeth unto life, and few there be who find it. The gate to the Public Treasury is wide, and broad is the way. Far too many there be which go in thereat. As Sena- tors of the United States it is our duty to guard this gate and to protect it to the utmost against unreasonable and unwar- ranted entry. I cannot in good conscience support the proposed pay raise bill in its present form- It would increase the salaries of Cabinet officers from $25,000 to $40,000 per year, and make comparable increases for salaries of the various and sundry deputy secretaries, under secretaries, as- sistant secretaries, and administrators- some to $38,500 per annum. Then there are substantial raises for the deputy as- sistant secretaries, deputy commission- ers, administrative assistants, executive assistants, and right down the line. These bureaucrats frequently solicit and because of pressing their applications re- ceive these appointments. Frequently, probably almost daily, I am besieged with requests from qualified men and women seeking appointive Federal Jobs. I am sure that this is true of other Senators. We hear the argument that many im- portant positions go unfilled or are oc- cupied by unqualified people because those who are qualified to fill them will not leave private industry for a lower Federal salary. I am sure that this is probably true in some cases. However, I have never seen the results of any study which named names and named jobs that have gone begging or whose functions are not being adequately performed for this reason. If it is necessary to raise the salaries for 10, 20, 50, 100, or even 1,000 Federal jobs in order to lure competent people, is it necessary at the same time to raise the salaries of all Federal employees for the sake of these few? Frankly, I am tired of this wornout argument. If there are certain Federal positions for which there is proof that a higher salary level is needed to attract competent people, then let these jobs be named specifically and let specific legislationbe enacted to cor- rect the problem. For years every time a pay raise bill comes before the Congress, we have heard this timeworn argument. I ask my colleagues, is it necessary and fair to the taxpayers to raise the pay of 2,000 second-, third-, and fourth-level ad- ministrators in order to obtain 50 quail- fled first-level administrators? Regarding U.S. judges It is well known that whenever there is a vacancy on the Federal bench. many, sometimes hun- dreds, of competent lawyers seek the appointment. There are at most but a few hundred lawyers in our Nation, who, if offered an appointment to the Federal bench. would not accept. Although there may be some, It is extremely doubt- ful that a lawyer would refuse appoint- ment to the Federal bench at $22,500 a year and agree to accept were the salary to be increased to $35,000. I would like to know the name of one man in the Nation who would refuse appointment to the U.S. Supreme Court, the highest honor a lawyer may receive, solely be- cause this position pays $35,000 a year and not $45,000. It should be remembered that in ad- dition to the prestige and other emolu- ments that accrue to a member of the Federal bench, these judges enjoy their salary as long as they live whether they continue to serve actively or whether they retire following 10 years of service having reached the age of 70. Talk about job security, they have it for life and with all the trimmings. There are Federal judges today ::n Ohio and in most other States who have reached retirement age and could have retired years ago. Evidently, they do not feel that they are being underpaid as many continue to serve actively well beyond the retirement age of 3 sco::?e and 10. Furthermore, the vast body of Fed- eral employees, protected as they are by Civil Service, on retirement receive an annuity which is comparable to the best In private industry. Mr. President, I am also opposed to the $10,000 salary increase for Senators and Members of the House of Representa- tives. However, there is much more merit to a reasonable increase in salaries for Members of the Congress than for appointed officials and the judiciary. It seems to me outrageous to propose that the Administrator of some independent agency should receive a salary in excess of that of a U.S. Senator. The bill pending in the House of Rep- resentatives would create a new group of bureaucrats, many hundreds of whom would receive salaries of $38,500 per an- num. They are appointed officia`s. They do not have to spend campaign money to be elected. The cost of cam- paigning to be elected to the House of Representatives or the U.S. Senate has become terrific, almost beyond compre- hension. Furthermore, following elec- tion, even though a candidate had politi- cal contributions to help him defray the cost of campaigning, he should maintain close relations with his constituents and wishes to do that. This means frequent travel to his home State. It means maintaining his home there as well as a Washington residence. Contrary to the belief of many people, Senators do not have expense accounts except for transportation costs alone of two trips a year to their home States. Further- more, I seriously question whether there would be any additional candidates for election to the Congress because of the proposed pay raise. No doubt the same men and women would be elected or re- turned to the Congress. The fact is that very few men and women of high achievement in private life would refuse appointment or certain election to the Senate of the United States or the House of Representatives. Another argument which we con- stantly hear in connection with pity raises is that the Federal Governme::aL must be competitive with private indus- try. Private industry bases its pay scale on profits. Where profits are great, sal- aries in many instances are supercolos- sal. I make no complaint about this. However, no such factor governs the Federal Government's payroll. Our Gov- ernment's only source of income for pay- ing salaries is the taxpayer who, heaven Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD -SENATE Growth of the unfunded liability [In millions] 21467 Fi+cal year Unfunded liability Includes increase- . Amount Remarks as of Juno 30 Due to act of-' Amount Duo to act of-' 1921 ---- ------ `$249 ---------------------------- ---------- ---------------------------- ---------- *Initial unfunded liability. 1922----------- ---------- ---------------------------- ---------- ---------------------------- ---------- 1923_ -------- ---------- ---------------------------- ---------- ---------------------------- ---------- 1924----------- 1926___________ 1926 -------- -287 "--'-'------'--------"---- R Sept. 22, 1922_ 1926 l 3 I J (7) ---- (-?-) $50 -------____-------------?? P Mar. 4, 1923_ _______ -----?--- (7) -- - *Same valuation assumptions as in 1921. 1926_-_-------- 1927_---------- 355 .. 393 y , ---------- u R, ---- ---------------------------- -------------??---- ------ ---------- 1928----------- 406 ---- ^------------------- - 1929_---------- 1930__-____--__ . 404 *730 ---------- -- R, I May 29, 1930________ ---- 327 --------------------- _____________________ ---------- __________ *Also includes effect of revised valuationassumptions. 1931 ------ ---- --------------------- ----- 1932 - ---- ---------`----------- ----- 1933----------- 1934 -} 1 000 - ----------- R June 30, 1932 ---------- 94 --------------------- no 16, 1933___ ______ ---------- $61 ____-_____ 1035 __________ , 1,174 ____________________________ _ ---- ---------------------------- --- _ _ assumptions as in 1930. -Same valuation 1936 --------- '---------- ------------------ ---------- ---------- ---------------------------- ---------- 1937 ---------- ---------- ------------------??------ ---------- ---------------------------- ---------- 1938 ---------- ---------- ---------------------------- ---------- --------^?---------------- ---------- 1939 ---------- 1940 ---------- -------- 1, 573 -----?--------------------- -------?---------------^? ---------- ---------- -------------?--------?--- ---??-------?------------ ---------- ---------- *Reflects changes in valuation assumptions. 1941 ---------- ---------- --------------------------- ---------- --------------------------- --------? 1942 ---------- ---------- ---------------------------- ---------- --------------------------- ---------- .. . 1943 ---------- *2,921 1944___________ 3,083 24 R --- EJan 1942 (7) ---------?-^--?---?--?- ---- ----- -Estimates for 1943 46 were overstated in view of later outback o 1946_---------- 3,314 , , ------ . employment from world war II levels. 3,516 1947___________ -2,866 1048________ }R Feb. 28 1,238 I Feb. 28, 1948___-______ 224 *Aet of Sept. 30, 1947, based on 1940 valuation assumptions. 1948_-_________ 4,328 , 1 1949----------- 1950----------- ---------- 4,839 -----??------------------- I July 6, 1950---------- ---------- 130 ------------??------------ ---------------------------- ---------- -- ---'--- 1951----------- 4,875 ---------------------------- ---------- ---------------------------- ---------- 1952_---------- 1953 4,938 -9,912 ------------------~ -------- I July 16, 195.._________ ---------- 28 ---------------------------- ____________________________ ---------- __________. *Reflects changes in valuation assumptions, including reduction of ___________ interest rate from 4 to 3 percent. 1954----------- _ ______ 1955- 10,583 11, 971 ---------------------------- I Aug. 31, 1964-_______ ---------- . 223 ---------------------------- , E (*)-------------------- ---------- 429 *Carcer-conditional appointment system. __ _ 1956_________-_ 13,838 P Juno 10,1955______-_ 821 I Aug. 11, 1965___ ______ 440 June 28,1955-------- ---------- ---------------------------- ------'--- 1957----------- 1958 17,951 451 *27 R July 31, 1966--------- P May 27, 1958________ 3,665 1,841 --------------'------------- I June 25, 1959__-_______ --------- 104 *Reflects revised assumptions in 1958 valuation which fully took into ___________ , Juno 20, 1958-------- ---------- ---------- --------------- ---------- account liberalization pay increases, and other factors affecting 1959----------- 28, 363 ---------------------------- ----- --- ---------------------------- ---??-- unfunded liability since prior valuation in 1953. 1960__-________ '. 31,143 P July 1,1960__-_______ 1,700 E July 1,1960 -___-___-__ 100 1961_---------- 32,547 I July 31,1961--_______ 330 ---------------------------- ---------- 1962_---------- 33,660 ---------------------------- P Oct 11,1062-_______-_ --------- 2,125. -----?-------------------- I Oct. 11, 1963___________ ---------- 575 1963___________ 38,681 {R Oct. 11, 1962--------- 1,100 ---------------------------- ------- 1963_-_________ - -34,060 ____________________________ __________ ____________________________ __________ *Reflects change in valuation interest rate from 3 to 8;ii percent. 1 See below: R=Retirement Act liberalizations. I=Increases in existing annuities. B = Extensions of co verage. P=1'ay acts (classified and postal). Mr. LAUSCHE. Mr. President, for many years Congress has been shirking its responsibility to put the civil service retirement system on a sound actuarial basis, and yet now it is proposed that a move be taken to further increase this unfunded liability. In his special message to the Congress dated February 20, 1962, the President recommended that salary increases for Federal employees be effective in three annual stages beginning in January 1963, which meant that the full impact of the costs would be absorbed into the Federal budget through 3 fiscal years. Not only does this bill violate the rec- ommenations of the President, but for the first time in history, if this legisla- tion is approved, one pay increase would be superimposed on another pay increase which is not yet in effect. The bill passed by the House will en- tail a cost of $60 million more than the President's recommendation. In the first four postal levels and the first five classified levels, the cost of the increase has been raised $200 million over the cost of the President's program; but reduced by $140 million in the top levels embrac- ing the grades from 9 and up; thus leav- ing a net increased cost of $60 million over the President's recommendation. Source: U.S. Civil Service Commission, Bureau of Retirement and Insurance, July 10, 1063. The forces of inflation are pent up and ready to break loose. Evidences are ap- pearing of a wave of action that will add inordinately to the cost of producing goods in _our country. Demands are be- ing made for a 35-hour week, which the President and the Secretary of Labor feel will not be to the economic advantage of the citizenry as a whole. With these forces in operation, it is wholly inadvisa- ble for Congress to give pay increases of the type contemplated for Congressmen, judges, Cabinet members, commission and board members, and others; more- over, it is not fair to give a general pay. increas3 in excess of what the presentl law provides. ~-JJ A QUIET DEATH FOR DRUG PROBE? - Mrs. NEUBERGER. Mr. President, I cannot believe that the Senate's preoc- cupation with its own ethical shortcom- ings, however appropriate and timely, will divert our attention from the equally serious charges of misconduct by drug manufacturers. Yet, yesterday's Herald Tribune pre- dicts just such imminent burial of the drug investigation. William Haddad of the Tribune staff quotes an anonymous Senator's prediction that the Baker af- fair will furnish a smokescreen to cover the premature demise of the drug investi- gation: Everyone's just waiting for things to quiet down here. Newspapers are notorious for getting interested in something else. You've got Bobby Baker to play around with now, and who"s going to care about us? We are investigating ourselves. We are continually looking for flyspecks on the ethical balance sheets of our most prominent executive officers. But we are unaccountably diffident in investigating charges of the most flagrant and im- moral practices in a critical private in- dustry. It is charged--and a prima facie case has been made-that there exists an in- ternational cartel which has succeeded in establishing unnaturally high price levels for drugs. It has been charged-and again there appears to be substantial supporting evi- dence-that American drug companies have participated in a "concerted and malicious campaign" to forestall the sale of low-cost, generic-name drugs in Latin America. Tomorrow the Antitrust and Monopoly Subcommittee is scheduled to meet to determine the fate of the drug investiga- tion. Now under subpena by the sub- Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 f Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 21468 CONGRESSIONAL RECORD -SENATE committee are the records of several major drug companies. There is reason to believe that these records will reveal the internal mechanism of the interna- tional cartel, including the secret code utilized in pursuing the ends of the car- tel, and actual price-fixing agreements on major drugs. If the subcommittee decides to termi- nate the investigation and if the sub- penas are lifted, these records, if they exist. can be destroyed with impunity. Mr. President, the people of the United States will not be diverted from the pur- suit of the facts about drug prices. If this investigation is killed, I predict that its ghost will return to plague those who presided at its execution. Mr. President, I am particularly con- cerned about this problem because the latest news from my State of Oregon is that druggists are refusing to fill pre- scriptions of patients on welfare. be- cause the State is falling behind in pay- ing for those prescriptions. The high cost of drugs is one of the things that entails a very unusual financial crisis in our State. Only last week the fifth biennial con- vention of the Industrial Union Depart- ment, AFL-CIO, reflected the great pub- lic concern which has been aroused over the drug price disclosures. We ask the Senate Subcommittee on An- titrust and Monopoly- The IUD resolved- to publicly examine the grave charges of the existence of a drug cartel which alleg- edly fixed prices to an excessive level in South America and had sabotaged efforts to bring drugs Within the reach of South Amer- ican workers. This resolution and the expectation of the American public at large must not be disappointed. WATER RESOURCES RESEARCH IN THE FEDERAL GOVERNMENT Mr. RIBICOFF, Mr. President, an ex- cellent article summarizing the report of the Task Group on Coordinated Water Resources Research of the Federal Coun- cil for Science and Technology appears In the current edition of Science magazine. I ask unanimous consent that the article, written by Dr. Roger Revelle of the Uni- versity of California and former science adviser to the Secretary of the Interior, be inserted in the RECORD at the end of my remarks. Of special interest to me was Dr. Re- velle's discussion of the need for coordi- nation in the field of water resources. He points out that some three dozen bureaus or equivalent units in seven major de- partments and independent agencies of the Government are engaged in water resource research. He calls for concert- ed efforts to achieve effective coordina- tion among these various governmental units. The Subcommittee on Reorganization and International Organizations is at the present time conducting a study of in- teragency coordination in the field of environmental hazards. One such haz- ard is the problem of water pollution. As Dr. Revelle points out: Various noxious substances are beh g dumped into our rivers, lakes, and estuark s. Tho long-term effects of many of these ( n human health and welfare are unknown. A strong Federal water pollution COI - trol program is now in operation. Ti e Senate, under the leadership of the Set - ator from Maine [Mr. MUSsf1E 1, his passed S. 643, which further improves and strengthens this program. But I submit, Mr. President, that until A e adopt a national goal with respect to stream protection the excellent prografr s Conieress has adopted will not reali?e their full potential. In December 1960 at the National Cor- fereiice on Water Pollution a distir- wished panel of experts In this field rec - ommended that the goal of pollutio i abatement should be to- Protect and enhance the capacity of tt.e water resource to serve the widest possible range of human needs. and that this got I can be approached only by accepting tt e positive policy of keeping waters as clew I as possible, as opposed to the negative policy of attempting to use the full capacity c f water fo: waste assimilation. Another panel of experts at that sam> conference expressed a similar idea I 1 different terms- We recommend the adoption or a nation: I credo- to be given as wide and consistent publicity as is feasible. The content of the credo would be: (1) Users of water do net have an Inherentright to pollute; (2) user; or public waters have a responsibility fcc returning them as nearly as clean as to tech nically possible; and (3) prevention is Jue: as important as control of pollution. The time has come for the variou; Federal agencies Involved in water re sources development and pollution con trot in particular to establish a true, national clean water program--coordi nated for efficiency and economy and directed toward a national goal toward which all can aspire-the positive goal of keeping water clean as opposed to th,! negative policy of tolerating all but th. most hazardous levels of pollution. It, so many circles, both in and out of Gov ernment, the policy has been to use th- full capacity of water for waste assimila Lion. It is not enough to be against pollu tion. That is the concept of control-o' repairing damage already done. W.' must be for clean water. That is tht. concept of prevention. Technically wi know enough to accomplish this goal The question is whether we are willini to do what needs to be done. Dr. Re velle's article shows how physical, bio- logical. engineering and social science: can help solve the problem. There being no objection. the article was ordered to be printed In the RECORD as follows: WATER-RESOURCES RESEARCH IN THE FEDERAL GOVERNMENT-PHYSICAL, BIOLOGICAL, EN- GINEERING. AND SOCIAL SCIENCES CAN HELL SOLVE A PROBLEM OP GROWING DIMENSION: (By Roger Revelle) Water is the most abundant substance it the part of our planet that Is accessible tc man. Nearly all our planet's water is salty and this is perfectly satisfactory for the creatures that live in the sea. But lane plants and animals must have fresh water They can live only because the sun contin- 'w'ember? ually distills pure water from the ocean and some of this distillate is carried In the air as vapor until it condenses and drops on the land. The flux of water from the ocean into the alr, onto the land, and back to the sea, is called the hydrologic cycle. Although the hydrologic cycle is exceed- ingly complex In detail, in general we can think of the water particles as following one of three paths. li) The larger part of the water that falls on the land surface pisses back to the air, either directly by evaporation or through the bodies of plants in transpira- tion. It may recondense and fall again on the land, or It may fall in the ocean. tlii A smaller part of the water that reacher the land surface remains in liquid form and either sinks into the ground or stays or. the surface. This liquid water runs downhill or flows underground until it is gathered by rivers that carry it back to the sea. (iii) A very small fraction Is taken up In the bodies of plants and animals. Some of this fraction Is broken down by plants, which use- its hydrogen in forming their tissues. The hy- drogen Is later recombined with oxygen in animal and plant respiration, and the mater thus produced is returned to the air. The time required for water particles to travel through the hydrologic cycle varies widely. A particle evaporated from the ocean near shore may fall as rain In a coastal re- gion, evaporate again almost immediately, and return to the ocean as rain within a few hours. Water falling as snow In the moun- tains may remain for months (or, in glaciers, for centuries) before it melts and runs off. Water that sinks Into the ground may re- main there a few years or many millennia before reappearing on the surface to com- plete Its journey to the sea. Thus, enormous quantities of fresh water are stored under- ground. In the UnitedStates the volume of underground fresh water Is probably at least 10 times the average annual precipitation of 30 Inches. The amount of water evaporated each year from the oceans would be sufficient. if it were carried to the continents and uniformly dis- tributed, to cover all the land with more than 100 inches of rain and snow. This Is three times the potential annual evaporation from land surfaces. The fact is, however, that the average depth of rainfall over the ocears is much greater than the average over the con- tinents. On about a third of the land areas of the earth the annual precipitation is less than the potential evaporation. Life is pos- sible in these arid regions only because water is carried to them from nearby mountains, where rain and snow exceed evaporation, and because precipitation in the and lands oc- curs sporadically, so that some of the water can be caught and stored by plants, or In the ground, before it can evaporate. Ever- in humid regions the hydrologic cycle slows down and speeds up from time to time, caus- ing periods of drought to alternate such floods. If we can think of the hydrologic cycle as nature's plumbing system, it must be admitted that from man's point of view the pipes are erratically arranged and the valves capriciously managed. Man is slcwly becoming more skillful at forecasting fluct ua- Lions in this system; someday he may be able to improve the arrangements. WATER SUPPLY OF THE UNITED STATES The United States, exclusive of Alaska rnd Hawaii, has a surface area of about 2 bil- lion acres. On the average, nearly 5 bil:.ion acre-feet of water per year falls on this area. Seventy-one percent of this water evaporates or is transpired back to the air near the place where it falls. The remaining 29 percent runs off or sinks Into the ground and is eventually gathered by streams. A quantity equivalent to about one-fourth the stream- flow (345 million acre-feet, 7 percent of the total annual precipitation) is diverted from rivers or pumped from wells for human 'ase. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENATE 21465 programing of AEC operating funds designed to provide an additional $109 million for activities related to the implementation of safeguards for the remainder of fiscal year 1964. After intensive hearings, the committee is of the opinion that the proposed amendment to Public Law 88-72, in conjunction with the additional operating funds which will be provided for the weapons development pro- gram, represents a sound initial program for the implementation of safeguards to the extent described below. - 1. Maintenance of Strong Weapons Laboratories The committee believes that the mainte- nance of adequate modern facilities at our nuclear weapons laboratories is perhaps the most essential of the safeguards proposed by the President. -Nuclear weapons devel- opment is a complex and vitally important scientific endeavor in which the United States must rank as second to none. The maintenance of modern laboratory facilities is necessary in order to attract and retain those competent scientists who can help to assure U.S. leadership in the nuclear weap- ons field. In furtherance of this objective, this bill provides for the replacement and moderniza- tion of facilities which are currently inade- quate to permit the full utilization of the highly specialized scientific talents of labora- tory personnel. Such projects as 64-d-11, high-temperature chemistry facility at Los Alamos Scientific Laboratory; 64-d-14, haz- ards control addition at Lawrence Radiation Laboratory; and 64-d-18, development lab- oratory at Sandia Base, should contribute significantly to the productivity and vitality of our nuclear weapons laboratories. 2. Readiness for the Resumption of Atmospheric Testing The committee wishes to emphasize the importance of maintaining a state of readi- ness for the resumption of atmospheric test- ing on short notice should further tests in the atmosphere be deemed essential to our national security or in the event of a viola- tion of the nuclear test ban treaty by the Soviet Union. In this connection, project 64-d-13, radio- chemistry building, Lawrence Radiation Lab- oratory, Livermore, Calif., will provide neces- sary facilities for analysis of material. As noted by the AEC: "This project is needed to provide immedi- ate improvements to the physical plant of the Laboratory (Livermore) with a view to insuring a high level of nuclear weapons research and development progress coupled with the readiness to resume full scale weap- ons testing in the atmosphere at short notice." Data presented to the committee indicates that this project is required for the radio- chemical analysis workload of the test pro- gram. There is at present a shortage of lab- oratory space for chemistry activities. 3. Continuation of a Comprehensive and Aggressive Underground Nuclear Testing program The committee strongly endorses a pro- gram of vigorous underground nuclear test- ing. In this connection, project 64-d-21 will help to increase the rate and efficiency of our underground weapons tests and improve the collection of test data. The AEC has stated that these facilities are necessary for the safe and effective conduct of intensified nuclear weapons activities at the Nevada Test Site. 4. Nuclear Weapon Test Detection As further tangible evidence of the Joint Committee's deep interest in assuring the full and effective implementation of the test ban treaty safeguards, a specialad hoc subcom- mittee visited installations in the worldwide nuclear weapon test detection system, early this month. Upon returning from this ex- tensive inspection trip, Chairman PASTORE stated: "We have returned from our inspection with a feeling of greater assurance in our ability to detect a violation of the test ban treaty should such a violation occur. How- ever, improvements are being, and must continue to be, made. * * - * Generally speaking, certain improvements can be ac- complished through additional research and development and augmentation of the exist- ing systems, and we have been assured that this is currently under consideration within the Department of Defense, the AEC, and other executive agencies." - Although this supplemental authorization bill does not include additional funds for re- search and development in the test detection field, nor for additional test detection facili- ties, which is the prime responsibility of the Department of Defense, the Joint Committee intends to follow closely further develop- ments in this field. In a classified report on its recent inspection trip, to be issued shortly, the committee will review our over- all test detection requirements and include certain recommendations for improving our detection capabilities. As noted above, in addition to the author- ization for capital facilities requested in this bill, the Atomic Energy Commission stated that, through the reprograming of operating funds, an additional $109,800,000 would be added to the operating budget for fiscal year 1964 for the weapons development program. These additional funds, coupled with the capital facilities proposed In this bill, should provide for an accelerated nuclear weapons program, designed to effectuate the test ban treaty safeguards. section 101 of Public Law 88-72 by $17,945,- 000. The amended authorization figure is $190,507,000. Section 2 contains a line item listing of 12 construction projects to be added to sec- tion 101(d) of Public Law 88-72, under the heading "Atomic weapop.s." The total esti- mated cost of these projects is $17,945,000. BACKGROUND On October 16, 1963, the Atomic Energy Commission transmitted to the Congress a proposed bill amending Public Law 88-72, the Atomic Energy Commission fiscal year 1964 authorization act, by providing a sup- plemental authorization of $17,945,000 for 12 new construction projects for the nuclear weapons development program. The proposed legislation was introduced by Senator PASTORE (by request, S. 2267) on October .29, 1963, and by Representative HOLIFIELD (by request, H.R. 8971) on Oc- tober 30, 1963. Hearings were held before the Subcommit- tee on Legislation on October 31, 1963, as summarized in the next section of this re- port. On November.20, 1963, the Subcommittee on Legislation met and approved, without dissent, H.R. 8971 and S. 2267 with the recommendation that they be reported favor- ably by the full committee. On November 20, 1963, the full committee met and voted to approve the bills without amendment and adopt this report thereon. COMMENTS BY THE JOINT COMMITTEE A. Safeguards in connection with the nuclear test ban treaty On September 10, 1963, in connection with the Senate debate on the ratification of the limited nuclear test ban treaty, the President wrote to Senators MANSFIELD and DIRKSEN, the Senate majority and minority leaders, outlining a program of safeguards designed to minimize the risk inherent in the limited nuclear test ban treaty. In pertinent part, the President outlined the following safeguards in connection with the treaty: * * * * * "Underground nuclear testing, which is permitted under the treaty, will be vigorously and diligently carried forward, and the equip- ment, facilities, personnel, and funds neces- sary for that purpose will be provided. "The United States will maintain a pos- ture of readiness to resume testing in the environments prohibited by the present treaty, and it will take all the necessary steps to safeguard our national security in- the event that there should be an abrogation or violation of any treaty provision. In par- ticular, the United States.retains the right to resume atmospheric testing forthwith if the Soviet Union should conduct tests in violation of the treaty. - "Our facilities for the detection of possible violations of this treaty will be expanded and improved as required to increase our assur- ance against clandestine violation by others. * * * * * "This Government will maintain strong weapons laboratories in a vigorous program of weapons development, in order to insure that the- United States will continue to have in the future a strength fully adequate for an effective national defense." Similar assurances were given to the Con- gress in communications from the Secretary of Defense and the Joint Chiefs of Staff. B. Implementation of safeguards It is the committee's view that the imple- mentation of the safeguards enumerated by the President is a matter of utmost im- portance for the future security of the Na- tion. - With this background in mind," the committee carefully considered the request for the 12 additional construction projects proposed in this bill. In addition the com- mittee received testimony concerning a re- THE SUPREME COMMITTEE FOR LIBERATION OF LITHUANIA Mr. LAUSCHE. Mr. President, three times within 25 years the Soviet Union invaded, terrorized and oppressed the peaceful little Baltic nation of Lithuania. Each time Lithuanians fought so val- iantly for freedom that the Soviets re- sorted to extreme measures to gain con- trol. In two cases, 1919 and 1940-41, the Russians were expelled. But, un- happily, in 1944 Red Russia returned and little Lithuania fell. - After great expenditures of time and money in a one-sided battle, the Com- munists have convinced many people that Lithuania asked to be incorporated into the Soviet Union: That is not a fact, and we must refute that great lie here and now, lending our voices to those necessarily faint protests from Lithua- nians themselves. It has been impossible for Lithuania to speak for herself, be- cause Russia exercises absolute control over the territory of Lithuania. There is no free exchange of information or freedom of speech for Lithuania. Until 2 years ago no outsider could even visit Lithuania. Even now such visits are carefully controlled. This adds another proof of the involuntary servitude of Lithuania to communism plain enough for anyone to see. Lithuania has not been completely unrepresented to the free world how- ever. There is a loyal group of Lithua- nian people in the United States who have been doing everything they can to protest Soviet action. They are fighting to regain the independence and freedom of Lithuania. This- group is the Supreme Committee for Liberation of Lithuania, founded in 1943 by under- Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - SENATE November ground resistance groups, and celebrat- ing its 20th anniversary in New York, November 23 and 24. The members and supporters of the committee have shown amazing courage and loyalty in tlhe face of overwhelming hardships. I am sure they only desire the greatest peace and welfare for their people. On the occasion of their 20th anniversary, on behalf of the people of Ohio. I express felicitations to those brave Lithuanians who in 1940. and Fifth. That the retirement pay of a Member of Congress is fixed at the rate of 21'2 percent of his salary for each year of service. A Member of Congress who has served 20 years would, under the proposed pay raise, become entitled to a retirement pay of 21,'2 percent a year, which is 50 percent-20 times 21,E per- cent---of his new salary of $32,500, equal- ing $16,250 per year: instead of 50 per- cent of his old salary of $22,500, %gqualing $11,250 a year. Based on the especially in 1944, stood Intrepidly "present salary of $22,500, if a Member against the Russian Red giant. Congress should retire at the end of 2 years, his monthly pension would be n.LN"W YLi Jr'Lonll VAX UN- CREASES FOR MEMBERS OF CON- GRESS AND OTHERS Mr. LAUSCHE. Mr. President, on two previous occasions. I spoke on the floor of the Senate vigorously opposing the proposed salary increases for Federal judges. Cabinet members, and Members of the Congress contained in the pending omnibus salary increase bill. This par- ticular section of the bill is highly con- troversial, as it should be. Usually, when controversial bills are before the Con- gress, Senators receive both "pro" and "con" mail in great volumes. The "pro" mail on the proposed increases for judges. Cabinet members, and Members of the Congress is extremely conspicuous by its absence, at least in my office. I am certain that the taxpayers cannot comprehend the philosophy of the Con- gress in professing economy and tax re- duction and encouraging labor and in- dustry to hold the line on wages and prices. and then, in the second breath, exclaiming that elected and appointed Federal officials should have their sal- aries increased substantially. Mr_ President, the proposed bill would increase the salaries of Congressmen and Senators from $22,500 to $32,500 per year, a net increase of $10,000 per year. While it is a matter of public rec- ord, it is little known among constitu- ents throughout the country that Con- gressmen and Senators, in addition to their annual salaries, are accorded at the expense of the taxpayers numerous fringe benefits. I wish to point out: First. That $3,000 of a Senator's salary is deductible for income tax purposes. Second. That each Senator may be re - imbursed annually for two round trips to and from his home State. Third. That each Senator is allowed a stationery account of $1,800 per year, and that at the close of a fiscal year, he may claim any unexpended balance in cash for his personal use. Fourth. That each Senator may receive an allowance of $1,200 per year for office rental in his home State. This sum may be used to defray rental expenses of a combination office in which the Senator may engage, as an example, in private practice along with serving his constitu- ents in an official senatorial manner. $562.60, while under the pending bill providing for $32,500, should he retire at the end of 12 years, he would receive 30 percent-12 times 21,z percent-of his new salary, equaling $812.50 per month, which is a $249.90 per month increase. Mr. President. I ask unanimous con- sent that a table showing the annu.ty title requirements for Members of Con- gress, prepared for the House Post Office and Civil Service Committee, may be printed at this point in the RECORD. There being no objection, the table was ordered to be printed in the RECORD, as follows: %tininamn age at 11iru nuns service - parattua[ Laaancdb~lr m[m,itaa d. 162_ _____________ DI - ----------- \ny age. _ Ina[ned reduced .___. .5.5______________ tn y age...... Speclalrequirements 5years ._ ----------------- 10 years. s a Member__.._ 5Years ._ ----------------- 30 years. ----- ---------- 25 years. ____--_.-____-__- 5ta------....__-_1 20years (r9Congresae-._ -----M-fern-1 unrc't ,'o,I. Anv ag.~ ------- 1 5 years._ ----- __________ i._.._.t--_-_------_-3 10yearsasaMember ------ Ik?fern'dreducrd------ 1_.__'to-_-------- ! 20 years, ncludingl9asa Stenltr r. None. no ,lust t.o' disabled. None. Any separation except by resignation or expulsion. Do. Begins at age 62. Begins at age 60. Begins at age 50. , No i,rovisinn_ Not. Lift- insurance and health bent -fits continue a ter retirement if M,-ndxr retires on :nmaediate annuity, after IZ wars of service or for dicnbllity. Mr. LAUSCHE. Mr. President, it is true that Senators pay into the retire- ment fund 71/7 percent of their salary, which is matched with an equal amount of 71!. percent by the Federal Govern- ment. The portion of the pending bill providing $10,000 increases in salaries for Senators and Congressmen is esti- mated to cost $5.4 million annually. This figure does not include Cabinet of- ficers, judicial employees, and Federal judges, as well as all others that are covered in the proposed bill. It Is in- teresting to note that the amount the Federal Government will be obligated to provide to match the 71,i percent paid into the fund by Congressmen will total $405,000 annually. A similar added obligation on the part of the Federal Government would apply to salaries of all except judges covered in the bill. The judges pay no part of their salary into the retirement fund. They, at a certain age with a certain minimum pe- riod of service, can go on the inactive list and receive full pay for the balance of their lives. They do not retire but go on the inactive list supposedly sub- ject to call for special assignments. Therefore. It is a misnomer to label the proposed salary increase bill as costing $600 million; it will cost the taxpayers much more than that. Mr. President, passage of this salary Increase bill, as drafted, is a flagrant breach of prudence. It would require the Federal Government to substantially increase its contributions to the retire- ment fund, which is already in a very precarious position. I want to point out that as of June 30, 1963, the unfunded liability of the civil service retirement fund, in which the Senators participate, was $34 billion. I am informed that if the pending salary increase bill passes, it will result in an increase of about one-half billion dollars to this unfunded liability. It is estimated that the general pay increase of 1962 added $1.9 billion to the unfunded liability, bringing it up to the June 30. 1963, figure of $34 billion. In 1921, when this fund was first es- tablished, the unfunded liability was $249 million. Since that time, as a result of the Federal Government's failure for long periods of time to provide for its matching contributions and its negli- gence in making adequate appropria- tions to take care of the added cost of pay increases and pension liberalization, the unfunded liability has steadily in- creased to its present figure. It is true that this unfunded liability is an obligation of the Federal Govern- ment, but in the final analysis, it is a commitment by the Federal Government affecting every Federal taxpayer in the country. Mr. President, I ask unanimous con- sent that a table showing the growth of the unfunded liability, prepared by the U.S. Civil Service Commission, Bureau of Retirement and Insurance, may be printed at this point in the RECORD. There being no objection, the table was ordered to be printed in the RECORD, as follows: Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD -APPENDIX A7433 "Further, That likewise we offer our sup- plications in behalf of President Lyndon B. Johnson. May God in His infinite wisdom bestow on him an abundance of His richest gifts, wisdom, courage, and faith and grant to him divine guidance as he assumes the responsibilities of leadership of the peoples of the free world, looking toward and hop- ing and praying for the day when all men everywhere shall enjoy the unfettered rights of life, liberty and the pursuit of happiness; and "May each one of us, with divine help, re- dedicate our lives to the God given privileges which are ours to work and pray that the whole wide world may become holier and happier, as we earnestly strive to banish from our own hearts and minds any personal prejudice and every unkind thought. May friendship, charity, and benevolence become in fact the motivating forces which guide our thoughts and words and deeds." Given under my hand and under the great seal of the supreme lodge and attested by the supreme secretary thereof, on this the twenty-fifth day of November in the year of nineteen hundred and sixty-three and the Pythian period the one hundredth. JOSEPH B. HACKER, Supreme Chancellor. Attest: E. J. KNELPER, Supreme Secretary. Kennedy Memorial Resolution of Coun- cil of the City of Binghamton, N.Y. EXTENSION OF REMARKS OF HON. HOWARD W. ROBISON OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Thursday, December 5, 1963 Mr. ROBISON. Mr. Speaker, on De- cember 2, 1963, the Council of the City of Binghamton, N.Y. meeting in regular session, unanimously adopted the fol- lowing resolution honoring the. memory of the late John Fitzgerald Kennedy, which resolution was thereafter ap- proved, on December 3, by the Honorable John: J.. Burns, mayor of Binghamton, and then forwarded to me with the re- quest that it be inserted in the CoN- GRESSIONAL RECORD. Accordingly, under leave to extend my remarks and to include extraneous ma- terial, the resolution is hereto appended: IN COUNCIL OF. THE CITY OF BINGHAMTON, STATE OF NEW YORK, A RESOLUTION HON- ORING THE MEMORY OF JOHN FITZGERALD KENNEDY Whereas John Fitzgerald Kennedy, the 35th President of the United States of Amer- ica, and the greatest leader. of our time, has met his untimely death on November 22, 1963, at the hand of a cruel and cowardly assassin; and Whereas his dedication to the cause of peace and the elevation of human dignity will always be remembered by the immortal words and work he left behind, which are not only known to this grieving Nation but to the world; and Whereas President John Fitzgerald Ken- nedy, in all his public utterances, exhorted the people of this world to strive for the common good with the best that is in each of us; and Whereas he was a man whose private and public life was above reproach; who was sincere and equitable, honest and honorable; one to whom artifice and treachery were unknown, who was a stranger to bigotry and prejudice, an adviser of the indigent and a friend of all, regardless of race, color, or creed; and - Whereas at Gettysburg 100 years ago, that great and kindly man, Abraham Lincoln, most eloquently spoke to the people a few words which now in paraphrase, seem to ex- press our thoughts about our deceased President: "It is for us, the living, rather, to bededi- cated here to the unfinished work which John Fitzgerald Kennedy who fought here has thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us-that from this honored dead President we take increased devotion to that cause for which he gave the last full measure of devotion-that we here highly resolve that this man shall not have died in vain;" and Whereas we dedicate this meeting in mem- ory of our compatriot, John Fitzgerald Ken- nedy, whose name is written in letters of gold upon the fleshy tablets, of our grateful and appreciative hearts, and whose name is deeply engraved in the pure white marble of honest fame and whose name will be in- scribed on the tablet of the immortals: Now, therefore, be it Resolved, That this council when it ad- journs tonight, it do so in the name and on behalf of the city of Binghamton and its citizens, with deep and sincere regret and in respect to the memory of John Fitzgerald Kennedy, the late President of the United States of America; and be it further Resolved, That the clerk of the city of Binghamton forward a copy of this resolu- tion to Mrs. Jacqueline Kennedy, the widow of John Fitzgerald Kennedy, and also that a copy be forwarded to Hon. HOWARD W. RoBIsoN, Congressman of the 33d District of the State of New York, with instructions that this resolution be made a part of the CONGRESSIONAL RECORD; and that the clerk of the city of Binghamton spread this reso- lution upon the minutes of this council. Dated: December 2, 1963. LEG J. KELLEY, President of Council. JOHN I. BURNS, Mayor of the City of Binghamton. Appraises Federal Pay Bill EXTENSION OF REMARKS OF HON. GEORGE M. WALLHAUSER OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Thursday, December 5, 1963 Mr. WALLHAUSER. Mr. Speaker, I believe that the statements contained in the letter by John W."Macy, Jr., Chair- man, U.S. Civil Service Commission, to the editor of the Washington Evening Star under date of December 2, 1963, ex- plain in great detail many of the reasons that prompted the House Post Office and Civil Service Committee to favorably act upon H.R. 8986 and I would suggest to my co ea- gues that they examine his statement carefully because of the infor- mation that it contains: APPRAISES FEDERAL PAY BILL I was surprised by your November 11 edi- torial describing the Federal pay bill ap- proved by the House Post Office and Civil Service Committee as a bad bill-particularly in view of your earlier editorial (Sept. 26, 1962) in favor of the concept of comparabil- ity between Government and private indus- try pay scales. The measure you oppose goes far toward carrying forward this principle of comparability which Congress. made a matter of. public policy in enacting the Sal- ary Reform Act of 1962. I must question both the reasons and the data you cite to support your view of H.R. 8988: 1. The cost of the legislation should not automatically make it a bad bill; actually, simple equity demands that the Government fulfill its commitment to the comparability principle on which it is founded. 2. The substantial raises scheduled to take effect in January 1984, were provided as the second phase of a gradual catchup formula in the Salary Reform Act of 1962: They actually average only 4.1 percent, would benefit only those in the first 15 pay grades, and would extend full comparability only through grade 7 and only to 1961 (representing about a 3-year timelag). 3. Your reference to substantial fringe benefits for certain jobs leaves the impres- sion that these are greatly to the advantage of Federal employees compared to those found in the private sector. Studies we have conducted show that this is not. the case. Although Government is generally credited with somewhat more liberal leave policies, it does not appear to be as liberal in group insurance policy and opportunities to ac- quire extra income such as through profit sharing, bonuses, stock options, etc. And Federal employees tend to pay a higher share of the cost of group insurance and retire- ment benefits. 4. Under the principle of comparability, pay increases are warranted all along the line-not just in the - secondary levels where you agree increases are justified-as you will see explained below. 5. Your comparison of the lower average pay rates of workers in private employment with those of Federal employees is akin to comparing apples with oranges and has no validity for proof of your point. The aver- age pay in the private sector' is dragged down by the inclusion of a large proportion of unskilled and industrial-type positions, while the Federal service has fewer of these and a greater proportion of professional and high-skilled white-collar positions. As to the Comparison of the average pay of employees of. the State of Ohio and the Federal Govern ment, I would point out that Ohio ranks in the lower half among the 50 States in aver- age pay rates for its employees. The in- validity of both comparisons is demonstrated by the Bureau of Labor Statistics surveys discussed below. 6. Contrary to.your assertion, the Federal employee is not better off than his opposite number in private employment, except in the two lowest grades, as the following facts make clear: The Salary Reform Act of 1982, in addi- tion to establishing the current salary schedules and the higherrates to be effective in January 1964, also provided for an annual review and a report by the President to Con- gress as a means for achieving and maintain- ing comparability. The basis for determin- ing comparability is the annual Bureau of Labor Statistics survey of clerical, adminis- trative, and professional jobs in 80 different metropolitan areas, covering 75 classes or categories of jobs. In._reporting these sur- veys, the Bureau of Labor Statistics provides a national average figure for each of the different levels of responsibility in each job category, and these averages serve as the basis for determining Federal salary sched- ules which would be comparable with private enterprise pay levels. It deserves emphasis that the rates reported. by BLS, being na- tional average. rates, are lower than those paid by the highest paying half of private enterprise. In its report on legislation that became the Salary Reform Act of 1962, the Senate Post Office and Civil Service Committee noted that time did not permit adequate development of needed information on ex- ecutive pay, and it specifically requested the Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 A7434 Approved- For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - APPENDIX December 5 President "to recommend for consideration In the next session of Congress appropriate increases in Federal executive salaries at all levels." In response to the committee re- quests, the President asked his Advisory Panel on Federal Salary Systeins (the Ran- da)l committee) to study the question of executive pay and to report Its findings and recommendations. Its subsequent recom- mendations for substantial adjustments for key positions In the executive, legislative, and judicial branches are well known to you. It was this review process-the BLS sur- vey, the Randall committee report, the President's recommendations for pay adjust- ments, and the House committee's consid- eration of the data and proposals-that produced H.R. 8986. Our own careful analysis of HR. 8988 Is that (I) it contains important reform provi- sions which are clearly consistent with the principles of the Federal Salary Reform Act of 1962; (2) It reaffirms congressional sup- port for the principle that Government pay and pay for like jobs in the private economy should be kept at comparable levels by pe- riodic review and appropriate statutory ad- justment; and (3) It achieves comparability in the lower career levels and moves In the direction of attaining comparability In the upper career levels. The Increase in the rates for the lower career levels does not de- part from the comparability principle but takes into account the 1963 BLS survey data released last month; In the Intermediate levels, comparability on a 1662 basis would be achieved; and, in the highest career levels, the rates are roughly comparable with the 1961 BLS data. The bill falls below the executive branch scale supported by the administration, but it rationalizes and simplifies the executive salary levels in all three branches of Govern- ment on a basis which provides badly needed relief for top positions In the executive branch--although still considerably below the salaries recommended by the Randall Panel. As the House committee report on the measure states. this bill "represents the first -and undoubtedly the conclusive-test as to whether Congress intends to abide by its commitment to the comparability principle or discard it within a year after Its adoption. The bill Is predicated upon the conviction that Congress will not abdicate its respon- sibility but, instead, will meet Its obliga- tion to Federal employees and the public by maintaining and strengthening the com- parability principle." It Is because of these Important and over- riding considerations that the administra- tion has expressed the hope, by letter of No- vember 9 to the chairman of the House com- mittee, that It will be possible for the House to consider H.R. 8986 in the near future in order to permit time for final congressional action on pay legislation this year. In view of the foregoing facts and your previously stated position in favor of comparability. I would hope that you would reconsider your editorial appraisal of the bill. JOHN W. MAcr, Jr.. Chairman. U.S. Civil Service Commission. EXTENSION OF REMARKS Or HON. JAMES G. FULTON OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Thursday, December 5. 1963 Mr. FULTON of Pennsylvania. Mr. Speaker, I am placing in the CONGRES- SIGNAL RECORD the excellent editorial of my longtime friend, John J, Edwards, owner of the West Side News, 229 Wyo- ming Avenue, Post Office Box 1042. Kingston, Pa., concerning our beloved late President John F. Kennedy. The editorial follows: One of the most distressing aspects of the untlme:y death of President John F. Ken- nedy is the fact that no man on earth had more good to live for than he. His life was dedicated to that which Ingood and his every effort in public life seemed to be aimed at Improvement in the welfare of his fellow hwnan beings, In addition, his personal life promised to go on being an exceptionally happy one. President Kennedy's personal characteris- tics were contagious. His vigor, his en- thusiasm, his optimism, and his good humor all seemed to have their Influence upon his fellow citizens, and certainly they were re- sponsible for his having become so endeared to his fellow citizens. Always with President Kennedy It was to smile and to keep busy, busy, busy. He had so match to do and so little time that he couldn't even be bothered with with a bat and topcoat. Be wanted his fellow Ameri- cans to be busy also and to be physically fit through exercise. He was the President who had.a poet. the late Robert Frost, as a speaker at his Inauguration and he and Mrs. Kennedy were active sponsors of music and the arts. So. his personality and his leadership have left what we hope will prove to be Indelible marks on the face of the Nation. and we hope that the high principles for which he stood so firmly will be maintained in our Govern- ment and national life. EXTENSION OF REMARKS or HON. EMANUEL CELLEH. OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Thursday, December 5, 1963 Mr. CELLER. Mr. Speaker, I am pleased to place in the CONGRESSIONAL RECORD the address delivered by J. Edgar Hoover. Director, Federal Bureau of In- vestigation, when he received the Brotherhood Award of the Brotherhood of the Washington Hebrew Congregation, Washington, D.C., on Wednesday, De- cember 4, 1983. Mr. Hoover's address follows: FAITH IN FREEDOM This is a great moment to my life. To be recognized In this manner by the Brother- hood of the Washington Hebrew Congrega- tion is a distinction which I shall cherish always. I are especially honored by the presence of so many close friends. including the die- tingulshed civic leaders whom you have selected as recetptents of other awards. How have these men come to positions of prominence in our community? It is be- cause they have dedicated themselves to servlre-they have eagerly accepted the re- sponsibilities of good citizenship. and they are willing to be judged upon their records of positive contributions to the cause of decency and of justice. Decency and justice-these are the high aims of this Brotherhood. just as they always have been an Integral part of the Hebrew religion which has given mankind the Ten Commandments and the concept of a mono- theistic God. For these sacred gifts, all true religious of the Western World are eter- nally Indebted to you. Americans of the Hebrew faith are doubly blessed. The rich, cultural inheritance that has been handed down since early Biblical times to generation after generation of Jews is combined, In our country. with a proud heritage of freedom. It is a heritage that was won by the sweat, the blood and the sac- rifices of men and women on many nation- alities and many religious creeds. Devotion to God; belief in the inherent dignity of mankind; faith in man's ability. through divine providence, to guide his own destiny-these are the strong ties that hold together our United States, the greases'; brotherhood of freedom in the history if the world. No one has a deeper understanding of the true meaning of freedom than the members of the Hebrew faith, for no peoples hale suffered more relentless persecution and in- justice at the hands of tyranny through the ages. Today the fires of anti-Semitism continue to burn with fierce intensity in many areas of the world. This is particularly true be- hind the Iron Curtain where communism, the bitter enemy of Judaism and of all other religions of the world, seeks to destroy your priceless heritage and the right of your peo- pie to live according to the tenets of God. During the past generation, the conscience of decent men everywhere has been shocked by the continuing vicious atrocities that have been committed against Jews in the Soviet Union. Rabbis have been arrested and imprisoned or executed; synagogues have been desecrated; the traditional Jewish school system has been liquidated: and He- brew literature, language and customs have been suppressed by the Russian Commr_t- nists. Despite Communist claims of improved conditions for Jews under the Khrushchev regime, the opposite actually is true. Ad- ditional forms of suppression have been in- troduced. The observance of Passover no longer can be held according to tradition; sacred He- brew burial customs have been obstructed; and a statewide program has been instituted to make Jews the scapegoats for criminal sets affecting the Russian economy. Jews are clearly Identified by religion on the in- ternal passport which all Soviet citizens must carry. Last October, the outrageous extent of this program was disclosed by the Moscow news- paper Izvestia when it announced the ar- rests of several persons Involved in an alleged criminal conspiracy. The leaders of this gang have "Jewish names." Izvestia told its readers in demanding a "show trial" and "death sentences," Vicious outbursts of religious hatred such as this caused one American newspaper re- cently to warn Its readers, "For reasons best known to themselves the Soviet leaders d s- criminate heavily against Jews. The evi- dence is overwhelming and incontrovertible and renewed almost daily by the Russians themselves." In a joint statement released last summer, three American Jewish organizations re- nounced the Soviet press for conveying "a viciously negative Image of the Jews," and indignantly proclaimed, "Soviet Jews are de- prived by official policy of religious and cul- tural rights ? ? ? and are the victims of discrimination." Communism and religion-like commu- nism and freedom-can never coexist, for Marxism. Is unalterably opposed to all forms of religious beliefs. Lenin acknowledged this fact more than 50 years ago when he exhorted his followers, "We must combat religior- this Is the A B C of all materialism, and consequently of Marxism." Then he de- clared. "The Marxist must be ? ? * an enemy of religion." Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1963 CONGRESSIONAL RECORD - HOUSE Carol Tyler, his $8,300-a-year secretary when he was employed by the Senate, lived there. Miss Tyler quit at the same time that Baker resigned in the midst of a controversy over his outside business activities. There is no evidence that the German woman was any more than a mere friendly acquaintance of Baker and Miss Tyler. KIN AMONG REDS The German woman was born and reared in Kleinitz, East Germany, and still has rela- tives on the other side of the Iron Curtain. The possibility that her activity might be connected with espionage was of some con- cern to security investigators because of the high rank of her male companions. The Investigations by the FBI are reported to have dispelled the possibility that the woman had any political motive in her activities. She and her husband are citizens of West Germany. There are reports here that they have been divorced since returning to Germany, but this could not be confirmed. Those acquainted with the woman class her as "stunning, and in general appearance comparable to movie actress Elizabeth Taylor. ANGRY OVER OUSTER When she first came to the United States, she was reported to have told various men she was single, and later said she was di- vorced. Only in the last few months before she was called back to Germany did she tell associates that she was married, and then she said she was contemplating a divorce. She is reported to have been furious be- cause her important friends did not block her expulsion. Neighbors. say she told them she was a model, to account for her unusual hours. She would leave at odd hours during the day and night, the neighbors said, her hus- band remaining at home. MISLABELING OF IMPORTED MOHAIR BLENDS (Mr. FISHER asked and was given permission to extend his remarks at this point in the RECORD and to include ex- traneous matter.) Mr. FISHER. Mr. Speaker, It, has come to my attention that quantities of knitted garments are being imported Into this country in violation of our labeling laws, contrary to the public in- terest. The apparel I refer to relates to sweaters manufactured .in Italy, which purports to be blends of stated mohair content, and other fibers. In July of this year 1,100,000 sweaters were admitted from Italy, valued at $5 milion. In order to promote the sale of these garments the labels have grossly overstated the mo- hair content, and other fiber components in the products. In this way American women are being swindled because they are led to believe the garments contain more mohair than is the case. This con- stitutes a fraud and a deception. This is inded a hoax, and the effect of it is to downgrade the mohair fiber with this misrepresentation. This constitutes a form of deception which may very well cause the buying public to get a false im- pression of the mohair fiber. Mohair is a specialty fiber. Its reputation for resil- iency and durability is well known. The growers have spent years improving the product, and this has added to its de- mand, both at home and abroad. But the importation of these sweaters, upon the consumer's acceptance and preference for the mohair fiber. It is not possible at this time to state precisely how widespread is this repre- hensible practice. -I have been able to confirm the following, however: Four- teen sweaters bought at retail and selected at random from 9 different well-known retailers in this country were recently tested for fiber content by the United States Testing Co., an inde- pendent and reputable commercial test- ing company. In each and every one of these tests it was found that the label on the garment overstated the mohair content, and in every instance except one, very substantially. In not a single instance did the label of any sweater tested truthfully state its fiber components. I am not prepared to say that no mohair-blend garment im- ported from Italy is honestly labeled. But I do know that among those investi- gated not in a single instance has one proven to be truthful. It is also important to note that these garments that were tested were selected at random. They were not purchased from any shady or "fly-by-night" re- tailer. They came from the best and most reputable retail stores, including R. H. Macy's, Sears, Roebuck & Co., Lern- er's, S. H. Kress, Bloomingdales, Bon- 'wit Teller, Stern's, Korvette, and Abra- ham & Straus. Sweaters purchased at other stores are now being tested. All of these garments, according to these labels, are of Italian origin. They are said to be hand-knitted. I am told they are produced in homes and under conditions ordinarily prohibited to American manufacturers. The wages paid to the workers are a mere pittance by comparison with American wage rates. Retailers who sell these garments usually do a profitable business. They buy them at low prices, which reflect the low wages paid, and then proceed to sell them under the misleading guise of false labels. And despite this fact the sales are frequently promoted under the claim of superior styling, whereas most or all of them are Italians work- ing on farms and in city slums. I want to emphasize that this fraud is felt not only by the consumers but also by the producers of mohair in this coun- try who take great and understandable pride in the superior quality of their product. This sort of practice, if con- tinued and expanded, will do irreparable damage to the market that has been ac- quired through the years for genuine mohair products. In fact, our domestic producers of comparable garments have seen their own employment decline dur- ing the past year. Mr. Speaker, this calls for prompt and positive action. I am sending letters to the Chairman of the Federal Trade Com- mission, which administers the Wool Labeling Act, and to the Commissioner of Customs, urging them to Initiate prompt action to remedy this problem and see to it that it is not permitted to Our entire industry is affected-the growers, the yarn spinners, and the knit- ted outerwear industry, and all others (Mr. UDALL asked and was given per- mission' to address the House for 1 minute, to revise and extend his remarks, and to include extraneous matter.) Mr. UDALL. Mr. Speaker, the CON- GRESSIONAL RECORD for Tuesday of last week contains remarks of Senator LAUSCHE, of Ohio, on the subject of Fed- eral pay legislation. The Senator noted, first, what he described as the "shock- ing" fact that there are twice as many Federal employees as State employees in his State, and, secondly, that Federal employees in Ohio and elsewhere receive higher weekly earnings than State em- ployees. He suggested that these were reasons for voting down any Federal pay proposals and described appeals for pay increases as "balderdash." Mr. Speaker, I should like to make these comments. First, looking at the charts the Senator placed in the RECORD, I could not help noticing that there are only four States in the Union which have more Federal employees than Ohio. It happens that the Senator's State benefits greatly from a number of sizable Fed- eral activities. In fact, Ohio has nearly six times as many Federal employees as my State of Arizona. However, I can assure the Senator that this is not be- cause Arizona looks unfavorably upon Federal programs. On the contrary, we welcome Federal employees and payrolls in our State. We would like more. And if there is any sentiment in the Senator's State to reduce the number of Federal installations there, I can only say that the people of my State will gladly make room for them. However, I am certain the Senator did not mean that he wants Federal instal- lations taken out of Ohio or that he wants thousands of Federal workers there laid off. His point was that there should be no increase of any kind in any Federal salaries because the average sal- ary paid Federal employees exceeds the average salary paid State employees in Ohio and elsewhere. Mr. Speaker, this would be like my saying that the State and local govern- ments of this country should cease all hiring because out of 91/2 million Gov- ernment employees in this country, a "disproprtionate" 7 million work for State and local governments. Or I might say that no State or local worker should be increased in salary until State and local employment drops from the present 37 per 1,000 population to the 13 per 1,000 ratio enjoyed by the Federal Gov- ernment. Mr. Speaker, I submit that this kind of generalized objection to salary legis- lation Is meaningless. I do not know how. many scientists, engineers and top administrators-capable of managing multibillion-dollar programs-are em- ployed In Ohio, but I know that the Fed- eral payroll has to carry thousands upon thousands of the most highly trained has anything like the space program, anything like the Department of De- labeled falsely with respect to their mo- engaged in the production and processing fense. To take an average of Federal hair content, has serious adverse effect of mohai p t should be equal Approved For Release OU5/ ~ it P666004W 0 5 0 62i-~ Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RE-CORD - HO1 JSE October 28 to or less than an average of State sal- aries in Ohio or Arizona is to assume that the two groups of employees are identical in nature and have identical jobs to perform. I do not see how Mem- bers of this Congress can make such a preposterous assumption. To my mind, Mr. Speaker, there is no substitute for hard, painstaking study of specific facts. If one makes such a study of the Federal pay structure, as the emi- nent businessmen on the Randall Com- mission did for both Presidents Eisen- hower and Kennedy, there can be no doubt about the need for meaningful increases in the Federal salary struc- ture, particularly in the top executive and judicial categories, the Cabinet and the Congress. For example, studies show that In the State of Ohio there are at least 17 public officials who are paid more than Senator LAUSCHE, surely one of the most impor- tant officials serving the people of that State. In fact, State salaries in Ohio range as high as $36,000, more than Is proposed for Senators and Congressmen in legislation now before the Congress. I take no exception to this. I believe It is altogether proper that the State of Ohio pay such salaries, for no organiza- tion can hope to attract top talent with- out competitive salaries. However, I be- lieve an examination of specific salaries in the State of Ohio may dispel any no- tions that salaries paid executives there are lower than salaries paid executives In the Federal Government. In fact, precisely the opposite is the case. To cite one example, the president of Ohio State University receives a salary of $36,000, while the U.S. Commissioner of Education, who administers a multi- billion-dollar program affecting every school district, most colleges and every taxpayer in the United States, receives a salary of $20,000. In addition to the president, there are three other executives of Ohio State University whose salaries exceed the highest executives in the Federal Gov- ernment. One Is the vice president for business and finance, who makes $26,- 976. I am sure his responsibilities are heavy, but I doubt that they are heavier than those of the Director of the Budget of the United States, who must super- vise expenditures of $100 billion a year at a salary of $22,500. Another is vice president for instruc- tion, paid $26,976, an important job but surely no more burdensome than that of the Administrator of the National Aeronautics and Space Administration, who makes $22,500. Then there is the dean of the medical school, who makes $26,952. I have no quarrel with this salary, but surely this position does not exceed in responsibility that of the Medical Director of the Vet- erans' Administration, who manages over 150 hospitals and medical facilities from coast to coast at a salary of $21,- 050. I am sure the president of Bowling Green State College in Ohio has a big job to do, but I seriously doubt that It is bigger or more vital than that of the Director of the Central Intelligence Agency, who makes $22,500, compared There are more. The superintendent of schools in Cincinnati. Ohio, receives a salary of $30,000 a year. The city manager of that city also makes $30,- 000 a year. The city manager of Day- ton receives $26,643 a year. These jobs require top talent, but so does that of Chairman of the Atomic Energy Com- mission, a job that pays only $22,500. And there are still more. The presi- dents of three other State universities, the superintendents of schools to Akron and Cleveland, the mayor of Cleveland, and the city manager of Toledo all re- ceive salaries exceeding by $3,000 those of the Secretaries of the Army, Navy and Air Force. Mr. Speaker, the argument is often made that Government service is a privi- lege and an honor, that we should not expect Government officials to receive the salaries they might receive in pri- vate industry. However, surely it is an honor to serve the State of Ohio just as It is an honor to serve the Federal Gov- ernment. From the facts presented, I would say there is more then ample rea- son to increase Federal salaries at least to the level enjoyed in that State for comparable talent an mumbo-jumbo about nonprofit opera- House for over a week how Mr. Galarzi, tions, and about patronage refunds not a man who has confessed judgment as a being income. And if a co-op happens defendant in a libel suit, has been work- ing for the Education and Labor Corn - mittee as an investigator. Now his ap- pointment has been legitimatized in s rather ex post facto sort of way by this announcement from the chairman c t the committee. So it is now official that Ernesto Go - larza is on the payroll and that the tax - payers have been paying him since October 1. What was Ernesto Galarza doing th s afternoon to earn his reported $19,000 per year? I have been here on the floc r of the House listening to the debate o a the bill to extend Public Law 78. Never - theless I could, if the House rules per - mitted It, tell you where Ernesto was th s afternoon. The rules do not prohibit ire from saying that he was not observir g nor working on any matter over which the Education and Labor Committee had jurisdiction. So our new $19,000-per-year consu - twit, who is paid by the taxpayer, h; s been guilty of playing "hockey" in h s first month on the job. Mr. MICHEL. Mr. Speaker, with col - siderable uneasiness among many Men - bers of this House we have passed ti c tax revision bill. Many of my colleagues. I aln sure, doubt the wisdom of cutth g taxes without cast iron assurance that Federal expenditures also will be ct t. The drafters of the legislation, of tour: e, also recognized this incongruity or they would not have included various pro- visions to close loopholes In the tax lairs so that the tax cut, to some exter t, would be balanced by revenue fron sources that have escaped taxation, rr their full share of taxation, In the pa; t. I mention these aspects of the bill b!- cause they have bearing on what I wa it to discuss here today: namely, a great big gaping loophole which has not ben closed off. This is a loophole in t le tax laws that is costing the Nation m ]- lions of dollars a year. It Is a looph(le than for some reason which escapes n e. we appear to be afraid to discuss alid afraid to do anything about. I refer to the rural electric cooperatives. In his 1961 tax message President Kennedy called the Congress attenti )n to the tax treatment of cooperatives In general. and he noted that "substant al income" from these cooperatives Is r of being taxed. He recommended that tic laws be clarified so that all earnings f re taxable to either the cooperatives or their patrons. But then, without any explanation, he stated that the exemption of rural el{ c- tr is cooperatives should be continu id. And, as we all know, when the Reverue Act of 1962 was enacted, rural elect -ic cooperatives were excluded from the provisions adopted to apply to coopei a- tlves. Now, Mr. Speaker, I know that at y- time the subjectof taxing rural electric to have some profits stashed away- well, that is not profit, it is earned sur- plus, or it is reserves, or required operat- ing capital-never profits. And there is another odd inconsistency about these arguments against taxing rural electric cooperatives. They say it will bring hardship to the farmer. In other words, they will use the farmer's name in this instance, but when it comes to justifying big Federal loans, then the farmer is forgotten and they argue that the co-ops have to take on industry, commerce and other nonfarm loads in order to keep their rates down. Mr. Speaker, there is only one stand- ard we can go by in deciding the tax status of rural electric cooperatives--do they make a profit on their operations or are they truly non-profit? If they do make a profit, then by every standard of fairness and equity, they should be taxed just as everyone else in this coun- try is taxed when he makes a profit. I propose today to present some facts which indicate to me that there are ood reasons for believing that co-ops make substantial profits. I have evidence that indicates to me that co-ops are making a profit on heir operations, and furthermore, that they are using money derived from their priv- ileged position of being able to get 2 per- cent Federal money to invest in securi- ties which pay a much higher interest rate. I contend this is immoral, ille- gal, and the co-ops are perpetrating a fraud on the people of the United States. During the hearings this year I asked the Administrator to provide for us the amount of the surplus funds of the rural electric cooperatives. He provided the committee with some figures which added up to the sum of $589 million. However, I am reasonably convinced that this figure does not even begin to reflect the true situation and that if the Nation is ever able to get at what is really the net surplus worth of the rural electric cooperatives, there will be an outcry all over the land. I contend that coopera- tives have sufficiently fattened off the 2 percent Federal cow so that they could resort to non-Federal financing for their future operations without the slightest hardship to any co-op member. I might say that this is a problem which has concerned us on the Appro- priations Committee for some years and we have been endeavoring during the appropriations hearings to find out from the REA just what is the financial con- dition of the rural electric cooperatives. Every year they come in and ask us for increasingly large amounts of money through the Rural Electrification. Ad- ministration. Every year we continue to hear complaints that the co-ops are in reality in sound financial health and perfectly capable of financing their ex- pansion needs outside of the Federal Government's subsidized loans. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 .vw ; es after October 1, the steel industry will be, earning 7 to 9 per cent of net worth after taxes if the ra q tions is around 70 a den 10 to 12 per cent if the operating rate is at 80 per cent; and 13 to 15 per cent if the operating rate is at 90 per cent. ;r P re "The steel industry, in short, can look forward to good profits without an increase in prices," Mr. Kennedy asserted. He argued, too, that the rilo numllu, Nn1U {JC11aUv. Thurmond, Democrat of South Carolina, proved the need for livv i , tagon information policies. ident of Ford to manage the e low to muermeaiate yreiu second largest business enter- given for the latest blast was prise in the country and I the same as that which the cterize No. gdWT* l i gesday. Q D1~~~4e3 fl~ i oit fully if I had shifted respon- C as at Hear ng I intermediate yield and the sec- assume this responsibility. I do The two men clashed as the not believe I can build esprit; and, on Monday, of low kilo- mittee heard Mr. McNamara members of the Defense De- answer for the second day partment if I attempt to shift Senator Thurmond's charge responsibility to them which is that the Pentagon is system- properly mine." atically "muzzling" anti-Com- munist military speakers. steel industry would be in a I The hearing ended at noon Senator Thurmond contended better moral position for a col- and Committee Chairman Rus- both yesterday and today that -_ J lective bargaining negotiations sell, Democrat of Georgia, said,there was a "pattern" of edit- due next spring if it does not he would try to reassemble the ing out strongly anti-Commu- raise prices, group on Monday to decide I nist statements, Mr. McNamara "If the industry were now whether senator Thurmond denied there was any tendency Ito forego a price increase," lie , will get the investigation he to talk "soft on communism" said, "it would enter collective !wants. and insisted that he would committee a list of the men in the Pentagon's speech review office-a retired colonel, two other civilians and nine mili- tary officers-but he balked when Senator Thurmond said it was "important to the work bargaining negotiations next l Mr. McNamara gave the ! shoulder the blame for any! See spring with a record of 31/2 years of price stability. rg1 "It would clearly then be the 1t turn of 'the labor representa- tives to limit wage demands to ,via level consistent with price ;o stability." 11 The President noted that ,t "steel is a bellweather" in the o 1national economy as well as a h major element in industrial I costs. He said a rise in steel prices would force price in- y creases in many industries and - invite them in others. f "A steel price increase in the months ahead," he warned, "could shatter the price stability which the country - has now enjpyed for some time." He added that Secretary of Defense McNamara estimates See STEEL, Page A-6 Eisenhower Tried To Avoid Zones Rule in Germany Former President . Eisen- week with Henry R. Luce, ed- itor-in-chief of Life Magazine, recounted his efforts to avoid separate occupational zones in Germany. In 1944 Gen. Eisenhower flew to Washington where he found President Roosevelt in oed with influenza. "This is my pet," he told the President. "Let's not have separate occupation zones in Germany. Instead, let's have ioint Allied administration of ,he whole country." "Impossible," Mr. Roosevelt replied.. "I'm already commit- ted. Mr. Luce's full account of the discussion with Mr. Eisen- lower appears on Page A-17. equivalent of a thousand tons of TNT. Ambassador Calls Ceylon was one of the two dozen countries represented at Balgrade. Its new envoy, Am- bassador. William Gopallawa, called on Mr. Kennedy this morning. In their exchange of remarks, Mr. Gopallawa said his nation realizes the Presi- dent's tasks in such critical times are great and difficult, Senator Thurpond also clashed today on the merits of the film "Operation Abolition." Senator Thurmond contended See PENTAGON, Page A-6 BREAKS FOR COMMERCIALS Over-Par Army Joins In Poor Berlin Show By LYNN HEINZERLING Associated Press Staff Writer BERLIN, Sept. 7.-The Fried- richstrasse crossing between East and West Berlin has been manned by about a squad of GIs in recent days. Today the television cameras appeared. So did two colonels, one lieutenant looking recoilless rifle and the machine guns. Especially since their line on Berlin has been that the United States as an imperialist aggressor has .been trying to brew up trouble. It was whispered around that Mr. Paar would not have been unhappy if the. Communists colonel, a major, a captain, two ! had sent one of their water- lieutenants and about 50 en-!spouting armored cars or a listed men, some of them in loudspeaker van to liven up the bulletproof vests, show. But it didn't happen. A one with the new 106 recoilless rifle mounted on it. The Jack Paar television staff had four television cameras trained on the spot, one on a 12-foot, platform, one on a hydraulic lift used to clean street lamps and two on the ground. One of the jeeps with a machine gun was run right up to the white line marking the border. Mr. Patr leaned on the jeep part of the time while his show was filmed. Just across the line, the East Berlin television station also was hard at work. Its cameramen apparently could not resist filming all the United States brass plus the wicked- l h i Communist loudspeaker truck remained discreetly in the background. An American helicopter flew overhead, one or two more jeeps with machine guns ap- peared and two busloads of American soldiers passed through the border for a sight- seeing tour of East Berlin. Mr. Paar interviewed two Army officers. Occasionally he would break off with "and now a word from New York." This apparently was the break for the commercials. Col. John L. Dean, command- er of the 2nd Battle Group, 6th Infantry Division, explained that the troops patrolling the border were being changed to- day and that accounted for the large number present. NUCLEAR, Page A-6 Red Envoy Flies To'Urgent',Talks BONN, Germany, Sept. 7 (AP).-Andrei A. Smirnov, So- viet Ambassador to West Ger- many, left suddenly early to- day for what his Embassy said were "urgent consultations" in Moscow. The Embassy said he was flying to the Soviet capital via East Berlin. The envoy's surprise depar- ture heightened speculation that the East Germans backed by the Kremlin, are planning new trouble over Berlin. SCHOOL LUNCHES CAN BE GOOD SANDWICHES for school lunch boxes should not be kept in the freezer more than two weeks, says Star Food Editor Violet Faulkner, whose article on school lunch ideas includes a tempting selection of snack and sandwich filling recipes. See Page D-1. Guide for Readers Amuse'ts D-12-13 Features ____C-5 Business ___B-6-71 Food ------ D-1-7 Classified C-5-11 i Lost, Found ___A-3 Comics __D-15-17 Obituary ---- B-4 Crossword --D- 1 6 Society- Dining and Home ___C-1-3 Dancing-__D-13 Editorial ____A-16 Sports ---- B-8-11 TV-Radio ___D-14 Edit'IArticles A- 171 Weather B-2 Have The Star Delivered to Your Home Daily and Sunday Dial Lincoln 3-5000 Approved For Relftse 2005/06/03 : CIA-RDP66BOQ403R000500040029-0 segregated school system. rence Association. presented and spring. Pulled Out Children Rr~a mem- . Other Schools Int-grated Angry white mothers. pro- Galveston Integrates Gce~n. Eisenhower with C3al eston, 265 miieg`~ (PYR, 12 e~tt7d r+Ytf"lt~Mf-1Si~'p'' ~~ ~ 3 ?Q 0040'OnIIYS called forced i 4* McDonogh 11 shortly before n egration, pulled their chit- Dallas, also desegregated kin-:at Gettysburg. dren out of both schools last dergarten and first grades The St. Lawrence Seaway 10 o'clock. More than 100 without incident when 37 Pioneers are made up of promi- white children start!d classes tali. At McDonogh 19, where o Negroes began classes in three Went Americans who, prior to' there an hour' earli? r. three Negro girls went re previously white schools. 1954. advocated and worked for White children showed up in classes, there was a complete Integration of educational construction of the Seaway. sizable numbers at Lusher, ; t)oycott by whites. ` At Frantz, a handful of white children remained with't the lone Negro child. THE FEDERAL SPOTLIGHT For the first several were.-' of desegregation last fall, scare-, r gationists taunted the few white 669 Top-So i parents who escorted their chit-, t `! t Jobs Arowd App dean to Frantz. Then police: sealed off the area and the, R demonstrations became spo sr By House Unit; Senators OK 714 'odic. to Asked Further Boycott Earlier this week, the strong- e By JOSEPH YOUNG the specified minimum of the legislative employes i.nder cer- ly-segregationist Cit,zens Coun-! Star staff writer ! newly created jobs. ; lain conditions. cil called for a continuance of s The House Civil Service; 3. Another 249 scientific and! The Senate grou)'s mem- the boycott. Several of the!b Committee today approved 669' research jobs under Public Law;bers are in accord with the mothers who withdrew their t new super-grade and other 313 which pay up to $19.000 a ;disability retirement provision, `children were listed among high-salaried Government jobs year were also approved by the but they want to discuss more; signers of a declaration of:v paying up to $19,000 a year. Senate group. fully the earlier cor gressional priciples of a "Committee of t The Senate Civil Service", These jobs are specially ear- retirement feature. 'he House Mothers for Their Childret. t Committee had approved 714. marked for specific departalso added a provisio 1 exempt- appearing in today's Times- 5 new jobs yesterday. ments and agencies as follows: )n? employes of tht Picayune. - Defense Department includ- 'Lure Stabilization Committee, The advertisement said that The administration had; 'from having to pay oack con- sought 945 additional positions; rng Army. Navy and Air Force'tribuGlons for past Federal Federal persistence in integral- i in the top-salary grades in its and Office of Secretary of service toward their etirement; mg schools would make it neces-; effort to attract and retain; Defense', 75: National Aero sary to operate private schools. the ablest people for adminis- benefits. This is ant Cher fan nautics and Space Administra-iture that some senators want Some observers, who asked `; discuss more. fully not to be identified, said they trative, professional, scientific. i tion, 135; National Security Ito engineering and research jobs Agency, 10; Federal Aviation * * * felt the federal Govertuneni,'s: in Government. Agency,10: Interior. 3: Agrlcui-! , move to bar neighboring St.: The Senate committee's bill ture, 3; Health. Education and SLCCESSFU*-Th s National Bernard Parish schools fro n provides: Welfare, 3; Commerce, 3: Post League of Postmasters has had accepting children who boycott 1. A total of 419 additional ; Office Department. 3; and Li- a dramatic rise in It fortunes New Orleans schools was( ill- super-grade jobs (grades 16 to brary of Congress. 4. during the past year or so. Its 'timed_ IA paying $15,255 to $18,500 a, The majority of the new, membership -has Inc eased by The Justice Department tour! year'. Of this number. 319 will, super-grade and Public Law 313 4,000 and the or anization action was filed Tuesday. It he available to the Civil Service; jobs would go to present em- looks for more gain a In the seeks to prohibit the segregated Commission for distribution to ploves via promotions. months ahead. St. Bernard system from ac- the various departments and * * * * The league just completed a cepting transfers from Orlea:;s agencies as it sees fit. The re- GAO---In addition to all of, very successful coot ention in Parish as long as St. Bernard maining 100 will be at the dis- these new positions, the Senate; Philadelphia. with 1 000 post- schools remain segregated. posal of the.President, who will Civil Service Committee ap-; masters attending. Tommy determine which departments proved 14 more super-grade Vaughn of Paris, Tenn., was and agencies will get the jobs. Jobs for the General Accounting elected president, a d Ralph f s ii, cif 2. In addition, another 48. Office, which i.i a legislative Bennett of Amesvi le, Ohio, super-grade jobs were especially: branch of the Congress. ; was elected executive vice earmarked for cetain depart-. * * * * , president. Bun Raley, who has; ments and agencies. of this; [jE I IRE y2$ y'T'--_ In another done an excellent jf b for the: ' number, 28 will go to the De-;action. the Senate Civil Service' league the past year, was reap- tense Department (to be dis-:Committee decided to have the;pointed legislative r!presenta-! tributed among Army, Navy Senate go to conference with; tive. . and Air Force Departments, !the House on the bill to, * * * * m and office of Secretary of De-;strengthen the civil service re-! ARMY AWARDS - Army's fence), 12 to the National Se-;tirement fund by increasing' fifth annual Secretary of the; eurity Agency and six to the. the interest rate it receives on; Army awards to o itstandingi Immigration and Naturaliza- its Treasury security invest-; civilian employes wi I be held tion Service. ments. from 12:15 to 1:15 p.m. Tues-; It should be stressed that Both the House and Senate day in the center ccurt of the' these earmarked positions do have already approved bills to Pentagon. r ['l not preclude the Civil Service.this effect. However, the House * * a * - Commission from giving the" amended the bill to provide; RELIGIOUS HOLIDAYS - Defense Department, NSA and, liberalized disability retire-;Post Office Department has in- INS additional super-grades ment standards for returning; structed post office: to allow from among the 419 generally such retie es to the retirement, Jewish employes the use of an-; designated new super-grade, rolls after they have been re-,nual leave if requested in order positions. It merely makes sure moved. It also provided for; to observe the forthcoming. E ! 1 i that Defense and the two other earlier retirement benefits foriRosh Hashonoh and Yom Kip- } agencies are assured at least members of Congress and ? pur holidays. M Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - HOUSE 18327 stigma of a less-than-;honorable discharge by giving them the opportunity to earn honorable citizenship. He had introduced this bill in the 86th Congress and again in the 87th Congress. It had passed the House unanimously both times,. but had been held up in the Senate committee. Be- lieving - that he now had lined up enough support in the Senate to get the bill out of committee, Dad again introduced it on the first day of the 88th Congress, January 9, 1963. The prospect for success looked promising. But the dream for which he had worked so hard and so long was never to be realized during his lifetime, for his time was so much shorter than he thought. - My intention was to write about my father, but as I do so, I find that it is im- possible to think of either of my parents without the other, for they Were, and still are, so completely united as one in all ways. So different in personality, yet they were so companionable, for they, perfectly comple- mented each other. Together, -before the start of each day, - they prayed for God's guidance, "Give us the strength and the wisdom to make wise decisions and to act according to Thy will." In times of doubt about the wisdom of a choice to be made or of grief and disappointment, they found comfort together in declaring, "Thy will be done." - - Always supported by his belief in the power of prayer and Christian living, Dad looked forward to the meetings of the Thurs- day Morning House Breakfast Group, spon- sored by the International Christian Leader- ship. Asked to be president of this group some years ago, he had declined the honor becaues he felt that his exteremly heavy workload at that time would stand in the way of his giving the breakfast group the time and attention that it should be given by its leader. He had finally- consented, how- ever, to take over the responsibility and was to become president of the group at Easter- time this year. While he was the secretary of this group in 1949, Dad made some remarks on the House floor that were quoted in the Chris- tian Leadership News as follows: "More and more do I feel that only as we in Congress remain humble and practice the - keeping of an attitude of supplication for help in clear thinking will we do our best work for the American people. As prayer is an entreaty and an earnest request, I am sure that every" Meniber of this great deliberative body rec- ognizes the need of practicing the habit of prayer as part of clearing mental attitudes and removing petty or puny thinking from the field of performance of congressional duties. Humility begets power; and nothing gives ordinary man so much humility as con- sciously to seek divine guidance." I have already mentioned the remarkable companionship of my parents, their oneness of thought and spirit. Now I want to say something about their devotion to the wel- fare of each other. Mother came first in Dad's thoughts, and we children were next. Since he seemed never to have a thought for himself, mother kept constant watch over him to see that his needs were in no -way neglected. After the tragic. death of my sis- ter Lydia Louise, 3 years ago, and the near passing of mother a short time later, Dad's great delight was in doing unexpected, thoughtful little things around the house for her. His sense of humor helped to lighten the burden of grief. When mother would thank him for some thoughtful atten- tion he had paid to her comfort, he would say, with his sparkling blue eyes twinkling, "Martha (as he jokingly called himself) has been here." - To Dad a task, no matter how humble, should be done joyously, and nothing that must be done was too menial for any man to do, no matter what his station in life hap- pened to be. Nobody, he thought, should lose the common touch. Thrifty, himself, in the use of material goods, he believed that one should not waste money, things- or time. It was without doubt his wise and fruitful use of time and money together with' his Christian faith that largely made possible his accomplishments. After going to Congress, Dad's time out for pleasure was very spare. Without Mother's careful watch to see that he did not use all the 24 hours of the day in work or service, he would have taken no time for pleasurable relaxation. He always said, however, that his work was his pleasure and that he loved every minute of it. -Unlike most men, he did not leave his work in his office at the end of the regular working hours. Instead, he brought it home, where he would sit in his lounge chair before a crackling fire, studying or writing to his constituents. Dad and Mother had dreams of retiring one day, of traveling by trailer all over the country, of editing his diary of daily con- gressional activities, and of writing things they wanted to publish. Next year they were to celebrate their 50th wedding anni- versary by going around the world on a freighter. This was to be the "glorious honeymoon trip" that he had promised Mother over 50 years ago when he had asked her to marry him. So many of the dreams that he had never had either the time or the money for were at last to become realities. Some of these dreams had first come to him in the years of his early youth when he had to earn a living for his aged parents and get and education at the same time. The hard- ships were all over now, and he could relax and live these dreams with his "treasure," his "Joy Forever," his one and only loving wife, If God's alloted time for dad had come, as apparently it had, one- thing is certain: he had not "rusted away"; he had "just plumb worn out." Just going to sleep and quietly slipping away while he was still in active service would have been his choice of the way to go. We who miss him every minute are led by our faith to believe that his new adventure is for him a new awakening offering him a new horizon and a new frontier with oppor- tunity for further growth. And so we re- lease him, knowing that love is eternal and still envelopes and guides us. We face the future with smiles and a determination to be worthy of his great love. He dreamedhis dreams for others, and he passionately desired to see them fulfilled, and his great devotion to his country and to his effort to do what he could in this peri- lous time to preserve freedom and to help our boys who would die for freedom, I be- lieve, would have kept him in his seat next to the Democratic table as long as God and his "great 23d" District willed. Others who, like us, have lost a dear and precious one of whom memories will never die may understand my tribute to my dad. His loving twinkling Irish blue eyes I may not see. His cheery "hi hi" is gone forever from our ears. His understanding, "Chin up with a smile," and life's joy ebbed out to sea, no longer the physical ears do hear. But 10. What have we here? My courage also ebbing out to sea, the tears did fall, I fear. Was that his understanding "Chin up with a smile" in my inner ear ' as I bid him my last. final fare-thee-well? As I slowly raise -my chin and try to smile, do I feel, more than see, his laughing, twink- ling V Irish-blue eyes embracing me with a loving smile? ? - Chin up, with a quivering smile and one tiny tear in my eye, I hear his cheery "hi hi. 'I'm always near. No need to weep and mourn." And to with a courageous smile a new and closer relationship is born. Yes, this wonderful, dear, courageous, ded- icated Christian father and stateman will forever be with us in spirit, cheering us on with his "hi hi" and "Chin up with a smile" and his very special greeting for mother," "You are a joy forever." Recorded in the annals of history he may never be. Recorded in the hearts of all who loved him, he will always be. - In loving memory, by his daughter, - DOROTHY DOYLE STANTON. FEDERAL SALARY LEGISLATIO - FOR 1963 previous order of the House, the gentle- man from Arizona [Mr. UDALL] is recog- nized for 30 minutes. - (Mr. UDALL asked and was given per- mission to revise and extend his remarks and to include a newspaper article and tables.) Mr. UDALL. Mr. Speaker, on Monday of this week I introduced H.R. 8716, a bill to adjust the rates of compensation for most of the officers and employees of the Federal Government. A companion bill, H.R. 8717, was introduced by my distin- guished colleague on the Post Office and Civil Service Committee, the gentleman from Virginia [Mr. BROYHILL]. From inquiries I have already received, I fully expect that there will be considerable discussion of these bills in the press and in the Halls of Congress. Therefore, I take the time of the House to outline and comment on their provisions. - In my judgment, this legislation is -necessary and is clearly justified. I am beginning to suspect that one fea- ture of my bill may not go unnoticed. This is the section increasing the salary 'of Representatives and Senators from $22,500 to $35,000:? While this particular provision may receive the most attention, it is actually a small part of the legisla- .tion, both in cost and in importance. There are approximately 21/2 million civilian employees of the Federal Gov- ernment. This bill will affect the com- pensation of nearly all of them and its provisions reach from the lowest paid maintenance employee to the members of the President's Cabinet and the Justices of the U.S. Supreme Court. The bill is intended to provide a logical, ra- .tional, interrelated pay structure for the entire Federal civilian establishment. In a real sense, it is companion legislation to the recently passed pay increase for the members of our armed services. Mr. Speaker, at this point, under unanimous consent, I include in the RECORD a brief summary of the provi- sions of this bill, as prepared by the staff .of the Post Office and Civil Service Com- mittee: SUMMARY OF EMPLOYEE, EXECUTIVE, LEGISLA- TIVE, AND JUDICIAL FEDERAL- SALARY BILL (H.R. 8716, BY MR. UDALL, AND H.R. 8717, By MR. BROYHILL OF VIRGINIA) GOVERNMENT EMPLOYEES IN GENERAL - Title I, cited as the "Federal Employees Salary Act of 1963," adjusts salaries of clas- Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - HO-JSE October 10 sifted. postal field service, Foreign Service and Veterans' Administration medicine and surgery employees to apply the "comparabil- ity" principle for all but those in supergrade and equal level positions. Theprovisions are the same as in H.R. 7552 and H.R. 7627 recom- mended by the administration. The bill establishes new pay schedules (to replace the second-phase schedules of the Federal Salary Reform Act of 1962) effective the first pay period beginning on or after January 1, 1964. The average classified in- crease above the present 1964 schedule is 4.7 percent, with higher percentage Increases for grades 7 and above to correct the artifi- cially depressed rates in such grades result- ing from the $20,000 ceiling fixed by the 1962 law. This provides comparability for classified grades 1 through 15 and equal lev- els In the other schedules, but not for super- grade levels. However, supergrade rates maintain the internal alinement pattern for grades 1 through 15. The classified salary range 1s $3,305 to $25,- 500. The postal salary range Is $3,820 to $25; 445. Veterans' medicine and surgery and Foreign Service top salaries are $25,000. ex- cept that the Chief Medical Director, Deputy Chief Medical Director, chiefs of mission, career ambassadors, and career ministers would be covered by title II. Executive Sal- aries. The postal section improves the means of fixing salaries of postmasters, using revenue units for a fiscal year, Instead of the present receipts for a calendar year, based on 1958 postal rates. Fourth-class postmasters will be paid a pro rata part of PFS level 5 sal- aries. based on hours of service required by the public need. EXECUTIVE SALARIES Title II. cited as the "Federal Executive Salary Act of 1963," fixes higher salaries for Cabinet officers and other officials in the executive branch but substantially below rates recommended by the Randall Panel. All positions within this title are divided into 6 salary levels, in place of the 14 present executive salary levels. Level I Includes the 10 Cabinet officers at $40,000 per annum. Present salaries are $25,000, and the Randall Panel recommends $50,000. Level II Includes the Deputy Secretary of Defense and the Under Secretary of State; the Administrators of AID. HHFA, NASA, and VA; chiefs of mission, class I (now $27,- 500) ; the Directors of the Bureau of the Budget, Central Intelligence, and FBI at $38,500 per annum. The top present rate (except as noted) Is $22,500, and, the Randall Panel recommends $45,000. Level III, at $36,500, includes the Deputy Attorney General, the Deputy Postmaster General, and all other Under Secretaries; the Secretaries of the military departments; the Administrators of largest agencies and ad- ministrations; the Deputy Administrators of VA, AID, HHFA, and NASA; the Deputy Di- rectors of the Bureau of the Budget and Cen- tral Intelligence; Chiefs of Mission, class 2 (now $25.000) ; the Chief Medical Director in VA; and the chairmen of various commis- sions and boards. Top pay, except as noted. now is $21,000, and the Randall Panel recom- mends $40,000. All other executive positions would be placed by the President in level IV, V, or VI, for which maximum salary rates would be $33,000, $30,000, and $27,500, respectively. Rates now range from $19,000 to $22,000, and the Randall Panel recommends $35.000, $33,000, and $30,000, for these respective levels. Positions expected to be Included in level IV are such as Assistant Secretaries of execu- Live and military departments, members of boards and commissions, and deputy heads of large agencies. Level V is expected to Include heads of principal services and other positions which the President deems of equal responsibility. Level VI is expected to include heads and board members of smaller agencies, deputy heads of other agencies, and other positions which the President deems to be of equal responsibility. The Vice President's salary Is increased from $36,000 to $50,500. The necessary conforming changes in existing law and repealers are contained in -Section 205 of the bill. Section 206 authorizes the President to fix the salaries of 2 Peace Corps positions: 5 FAA positions: chiefs of mission, class 3 and class 4; all career ambassadors and career ministers; 30 NASA positions; and 4 U.S. Attorney positions at appropriate rates not exceeding the maximums for levels IV, V, or VI of this title. These positions now may not exceed the $20,000 top classified salary rate, except for the chiefs of mission, class 3, who receive $22,600. All .f the numerous other positions now in executive pay levels will be placed under the Classification Act of 1949. Section 210 contains savings provisions prohibiting the reduction of any rates by reason of enactment of this bill. . LEGSILsTn'E EMPLOYEES AND MEMBERS OF CONGRESS Title III, cited In section 301 as the "Fed- eral Legislative Salary Act of 1963." Increases salaries of legislative employees in appro- priate relationship to classified increases, as was provided in our committee pay bill (H-P. 9531. 87th Congress) last year. Section 303 provides increases, comparable with increases for executive branch officers. for the officers of the agencies In the legis- lative branch (including the top officials in the UnitedStates General Accounting Office. the Library of Congress, and the Government Printing Office) and for the officers of the U.S. house of Representatives. Section 304 fixes the Speaker's salary at $50,500 and the salaries of Senators, Repre- sentatives, and the Resident Commissioner from Puerto Rico at $35,000. The Randal Panel recommends $60,000 and $35,000, re- spectively. The Randall Panel also recommends that the allowances of the Speaker and the Vice President be increased from $10,000 and $15,000, the amount of the salaries of Mem- ber, "deductible for income tax purposes to offset their living expenses" be increased from $3,000 to $5,000, and that per diem in lieu of subsistence for Members in official travel status be Increased from a of $16 (or $30) to $50. No such provisions are in the proposed bill. Section 305 requires that any person lp- pointed to the staff of a Member of Congress must render actual service in the Member's Washington or district office. JUDICIAL EMPLOYEES AND FEDERAL JUDGES Title IV, cited as the "Federal Judicial Salary Act of 1963," increases salaries of em- ployees in the judicial generally in propor- tion to classified salary Increases provided by title I. Section 403 increases the salary of ':he Chief Justice of the Supreme Court from $35,500 to $50,500, and salaries of the Associ- ate Justices from $35,000 to $50,000. The Randall Panel recommends $60,500 and $60.- 000 for these respective offices. Circuit judges' salaries would be increased from $26,500 to $40.500, and other Federal judges would be granted comparable Increases. APPOINTMENT AND SERVICE LIMITATIONS; EFFECTIVE DATE Title V, section 501, prohibits nepotism In certain appointments to positions in the Government unless full disclosure of the re- lationship Is made a matter of public record. Section 503 makes the proposed new sal- axles effective the first pay period which be- gins on or after January 1, 1964. Mr. Speaker, because the salary levels in the bill for the principal officers of the Federal Government in all three branches are based, in large part, on the recent recommendations of the so-called Randall report. which I shall discuss further in a few moments, I should also like to print at this point a comparison of the'present salaries of top officials with the salaries proposed by the Rand- all Commission and the salaries provided for by my bill. Mr. Speaker, under unanimous con- sent, I include a table containing these figures at this point in my remarks: Cantpnrisan of salary rates for legislative, judicial, and executive officials-Present and pro posed Title 1, elacsifled and pnst:d etnplnyees, etc., cost $5od m Ilion. Title 11, Executive, cast $0.7 mullion: ti.,. I'realdent ------------------------------------- --------------- L,j'.el I, Cabinet (10olfloes)------------------------ --------------- I'--1 H. Immediate subrab[net level (Iooslces)___ _______________ l.e-l III. Deputy and Under secretary level (46 of lees) ----_.___._ l.e :-e l 1%] La?.ei V)Ail other executives, to he assigned by I resident t__..._ Level 4'l iiiiii Title 111. Conoress: Th,. 3(oak.'r------------------------------..------- --------------- \[rnrla?ra, asst $6.9 toillion...----__________________ ------ _-------- L4-, csiatlve employees, cost $7.l million. Title IV, judges, cost $7.2 million: Supreme Court: ('hlefJustice----------------------------------- ._.------------- Aotoeinte Justices------------------------------'---?----------- Cir,,uit Courts_____________________________________________________ Court of Claims--------------------------------------------------- Co ort of Customs and Patent Apixwrls_____________ ________________ Court of Military Aplrat:...... ___________________.______._________ Ut..trict Court.____________________________________________________ Cu'toms Court ---------------------------------------------------- 'tar t'ourt___________________________--__---_-.___-.____-__-_______ Jn.lielai employees, cost $3.0 million. $35, ow 25, o(* 22,500 21,000 19,000 22000 35, 000 t., 500 as, 500 &5, 000 25,500 25, 500 25, 500 25, 5110 22,600 22, 500 22,500 Randall report $60. 000 50, 000 45, 000 40, 000 35.000 (3.000 30,000 60. 000 3,5,000 60,500 60,000 45, 000 45, 000 45, 000 45, 000 35,000 311, 000 3,5, 000 Proposed rate $,",0. 500 4C, 000 3?, 500 3f, .i00 32,000 3(.000 2-".500 5(.500 3:,900 50, 500 50,000 40.500 40,,W 40, 500 40,W0 35,000 35, (00 35, (100 I Th.- President will place positions In levels IV, V, an I VI In accordance with standards set forth in the bill. exam pie, ASSlbtsltt Secretaries of executive department are expected to be placed in level IV. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1963 CONGRESSIONAL RECORD - HOUSE 18329 I might say as a personal aside that I have been warned by several of my col- leagues and by some of my friends in Arizona that the sponsorship of this bill may have disastrous political conse- quences for me. I fully recognize that there are risks involved but I feel so strongly the need for legislation of this kind that I accept these risks. My deci- sion to sponsor this legislation is based on three principal factors: This first reason is that last year, the Congress established for the first time a rational, logical machinery for the reg- ular and annual adjustment of pay schedules in the postal and classified services. It was decided that the old system of irregular increases, usually rushed through under pressure in elec- tion years, should be abandoned. In place of this system, the Congress deter- mined that the guiding principle of pay in the classified and postal service should be comparability. This means, in es- sence, that the Federal Government should give comparable pay for compar- able skill and responsibility to that paid by private enterprise for similar duties. Under the machinery of the 1962 act, the President, based on recommendations of the Civil Service Commission, and on studies of the Bureau of Labor Statistics, recommends the adjustments necessary to retain comparable pay schedules. Unless Congress keeps faith this year, this machinery will, for all practical purposes, have been abandoned without a trial. The second main reason for my spon- sorship of this legislation is the crying need I see for better management of the affairs of the Federal Establishment. Our Federal budget this year is crowding $100 billion and, whether we like it or not, budgets of something near this size will continue. The Federal Government operates a Defense Establishment spending some $55 billion a year. It holds lands and other resources worth hundreds of billions of dollars. It operates a space program, a pro- gram of public roads and public works, a large and important Federal aviation agency, and dozens of other activities which directly affect the lives of all Americans. A successful army needs not only brilliant and dedicated gen- erals; it needs well trained, experienced majors, lieutenants and sergeants to carry out the strategy agreed upon. It is in the lower executive ranks where many of the most important day-to-day decisions are made and where essentially it is determined whether we have effec- tive economic administration or not. It is in the intermediate and lower execu- tive grades of the Federal Government where our present pay scales are most inadequate. In most instances, we not only do not have comparability with pri- vate enterprise pay, but in the upper ex- ecutive levels particularly, the Federal Government pays less than one-half of the salaries paid by private enterprise for similar responsibility and skill. It has long been apparent that the present salary levels of the Members of Congress, the Cabinet, and the Federal judges are a rigid ceiling which prevent the estab- lishment of proper salary levels for the Federal officials in key executive posi- tions. My third reason for sponsoring the features of my legislation which would raise the salary levels_Qf the Members of Congress, the Federal judges, and Cabi- net members, and heads of the major Federal agencies is that the present sal- aries are fixed at unrealistic and ridi- culously low figures which do a great injustice to those in the Federal Govern- ment having the most burdensome re- sponsibilities of all. Mr. Speaker, I should like to discuss some of these factors in a little more detail. Successful managers in private industry learned a long time ago that it is simply a good investment in sound management to pay substantial compen- sation to the men who carry heavy bur- dens and must make major decisions. The result is not waste but savings. The same principle should apply in the Federal Government. Our present prac- tices result in a situation where the police chief of Chicago, charged with protecting the lives and properties of the citizens of one city is paid a salary of $30,000, yet the Secretary of Defense, whose decisions ultimately affect the lives and security of all of the American people, is paid $25,000 a year. This, despite the fact that the Secretary of Defense presides over an establishment spending each year some $55 billion of tax money and employing uniformed and civilian peo- ple totaling more than 3 million. It is absurd to me to ask a man to take on this crushing burden at a salary of $25,- 000. The same could be said of the re- sponsibilities of the members of the U.S. Supreme Court whose present pay-$35,- 000-is much less than thousands of suc- cessful attorneys in our major cities. The comptroller of the city of New York is paid $40,000 a year. The Secretary of the U.S. Treasury is paid $25,000. The Director of the FBI, who is charged with heavy and burdensome responsibilities involving our national security and who heads a law enforcement organization of nearly 14,000 skilled and dedicated tech- nicians, is paid $22,000. Most of my colleagues would readily agree that the salaries I have just men- tioned are utterly inadequate and yet Congress has very properly refused to raise these salaries until such time as the compensation of its own Members is ad- justed. This vicious circle goes on to affect the assistant secretaries in our Cabinet departments and their assist- ants and their major bureau chiefs. Go- ing down the scale, the failure to raise congressional pay depresses the maxi- mum salaries which can be offered to lawyers, doctors, scientists, space tech- nicians, and many others in key execu- tive and managerial positions throughout the range of the Federal service. Perhaps an example will help. The manager of Los Angeles International Airport is paid $40,000. Recently, the Federal Government opened Dulles In- ternational Airport here in Washington under the management of the Federal Aviation Agency. The taxpayers have invested in this facility more than $100 million, yet the Federal pay structure is such that the maximum pay available for the executive manager of this in- stallation is $16,000. If the person se- lected is good and efficient, it is almost certain he will be hired away within a very short time. If he isn't, he will make mistakes and one bad decision could cost much more than an adequate salary. I could cite dozens of similar examples in regard to other specialists in the space program, in the Defense Department, and in other technical and scientific agencies of the Government. Every year dozens of our best skilled technicians and managers are hired away by private en- terprise. -A recent news story indicated that a distinguished Senator who had held posi- tions of great trust and responsibility, and had been nominated by one of our political parties for the Office of Vice President of the United States, died after some two decades of Federal service leav- ing an estate of $20,000. Some 10 years ago, a great public servant who was an outstanding Chief Justice of the Su- preme Court, died leaving an even smaller estate. No one should contemplate be- coming wealthy while working for the Federal Government but I believe that pay scales for top officials should prevent situations of this kind. While the Fed- eral Government cannot pay the huge salaries received by our great industrial leaders, we should not be afraid to give really substantial compensation which will attract the very best brains and tal- ents in our country. This goal has not been achieved and the result is a tend- ency for the timid, the mediocre, and the insecure to stay in Federal Government while the bold, younger executive with a future leaves Government service for a higher paid position in private enterprise. A young executive with an obvious man- agement potential can join one of the great corporations and look forward to earning many times what he would make if he continued in Government service. We are all familiar with the fact that Robert McNamara took a cut of some- thing like $375,000 when he left his job as president of the Ford Motor Co. to become Secretary of Defense. What we may not realize is that one can survey recent reports of our large industrial cor- porations and find thousands upon thou- sands of instances where salaries of $50,- 000 to $150,000 are paid to upper level management officials. Here are just a few examples: The president of the Duquesne Light Co. in Pittsburgh, Pa., makes more money per year than the total salaries of the Chairman and all four members of the Federal Power Commission, which has jurisdiction over hundreds of such utility companies from coast to coast. The president of the American Tobacco Co. makes more per year than the com- bined salaries of the Secretaries of De- fense, State, Treasury, Interior, Agri- culture, Commerce, Labor, and Health, Education, and Welfare. The president of Standard Oil of New Jersey makes even more than that- enough to pay the entire Cabinet plus, say, a Secretary of Urban Affairs and some other Secretary we haven't even thought of yet. Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - HOUSE October -to The chairman and chief executive of the Ford Motor Co., Henry Ford II, testified some months ago before the Ways and Means Committee in support of the tax bill. His salary last year was approximately equal to the total com- bined salaries of that entire committee of 25 members, one of the most power- ful and important bodies in the United States. The president of one utility company in Arizona makes more money than the combined salaries of Senators CARL HAY- DEN and BARRY GOLDWATER, and his own Congressman, our colleague, Represent- ative JOHN J. RHODES, of Phoenix. Fortune Magazine regularly complies lists of the top 500 corporations in the United States, Let us look at the com- pany at the very bottom of that list. the smallest of the 500. The Pitney- Bowes Corp. recently had that distinc- tion. Let us forget for a minute the president and the chairman of the board. Let us not forget even the third- highest-paid executive and drop down to level 4 in Pitney-Bowes salaries, the ex- ecutive vice president. Last year this man made $53,893, more than double the salary of the Secretary of Commerce. But let us look further at this corpora- tion at the bottom of the Fortune list of 500 corporations. Its top four execu- tives last year made an aggregate of $320,000. How does this compare with the pay of Senators and Congressmen? Well, I might just point out that these four executives made more than the combined salaries of the eight Senators and six Representatives comprising the congressional delegations of Maine, Ver- mont, Rhode Island, and Delaware. Surely we can all agree that among the most important jobs In the United States are the 10 positions in the Presi- dent's Cabinet. By the decisions these men make our entire economy must stand or fall. One might assume that these men, who will allocate the ex- penditure of something like $100 billion this year, would be compensated on the same scale of magnitude as the top ex- ecutives in private Industry. However, from a study of the annual reports of corporations listed on the New York Stock Exchange, I estimate that in this sector of the economy alone you will find more than 10,000 executives whose sala- ries exceed those of our top 10 Cabinet officers. Furthermore, this does not take into consideration tens of thousands of corporations listed on other exchanges. unlisted or private, doing business across the country. An indication of the number of salaries exceeding those of our Cabinet members can be found in the records of the In- ternal Revenue Service, which in 1960 re- ported there were 125,000 persons in this country whose adjusted gross Incomes, after deductions of every description and capital gains exemptions, were $50,000 or more. In other words, our economy compensated 125,000 persons at a rate more than double that of our top 10 Cabinet officers. Please understand, I am offering these facts and figures, not In criticism of our private corporations, but to show the great disparity between the salaries paid Federal executives and executives in pri- vate industry. I do not for a minute sug- gest that Cabinet members or Congress- men or Supreme Court Justices should receive salaries in the extreme heights available in private industry, but I do suggest that the gulf should be narrowed if we hope to get and retain top talent In Government. The failure to raise congressional, Cabinet. and judicial pay not only af- fects the executive and managerial levels of the Federal system but depresses the entire Federal pay structure and does an injustice even to postal clerks and letter carriers. The 500,000 letter carriers and mail clerks who operate our great postal sys- tem. the world's largest enterprise, are underpaid by any objective standard. These men and women make a lifetime career of the postal service and should receive salaries comparable to positions requiring theesame kind of skill and re- sponsibility in private industry. During the last years of the Eisen- hower administration, the President asked Clarence Randall, formerly head of the Inland Steel Corp., to head a commission to recommend salary lev- els for Members of Congress, the Cabi- net, and the upper levels of the Federal Government. Mr. Randall's report was an impressive document. Recently. President Kennedy asked Mr. Randall to update his committee findings and he did so with the help of a committee which included such outstanding Amer- icans as former Supreme Court Justice Stanley Reed, General of the Army Omar Bradley. Marion Folsom, of the Eisenhower Cabinet, and others. The executive, judicial, and congressional salaries provided for my bill are based on the findings of the commission and. in fact, my salary levels are in most in- stances less than recommended by the Randall panel. The September 15, 1963, edition of the New York Times magazine carried ar article by Mr. Randall summarizing the work of that panel. Mr. Speaker, under unanimous con- sent, I will include the article by Mr. Randall in the RECORD at the conclusion of my remarks. Our country was founded on the theory that democracy works best when able, ambitious young men from any level of life can aspire to be President serve in the Congress, or in some high position of government, if they car prove their merit. The kind of pay scales we now have are likely to result it having a Congress in which this k1ne of person can be found only If he serve: at a sacrifice to himself and his family Some feel that honor is adequate pay- something like heading the communit3 chest. I cannot imagine, however, that this is the way we want to run our coun- try. Congress should not be limited to men who are wealthy or to politica' hacks who find the level of pay more than they could earn in private employ- ment. The Members of Congress should lx paid a salary which would make it pos- sible for the recognized leaders in a com- munity to seek the office and be assurer of compensation somewhat similar to that which they might expect in posi- tions of leadership in their own com- munities. This is not the case today. Mr. Speaker, let me discuss in a little more detail the $35,000 which my bill provides for the Members of Congress. I think my colleagues fully recognize, al- though the general public may not, the almost impossible burden of serving in the Congress. Until recent years, Congress was in session ordinarily from January through June or July. The Members had time to attend to their private business af- fairs. to practice law, or otherwise sup- plement their income. It is expected this year that Congress will have a 12- month session and every indication is that long sessions will be the rule in coming years. At the same time he is being deprived of the time to pursue his private business interests for supplemental income, the Congressman is required to maintain 2 homes, to live in Washington, where living costs are substantially higher than most other places, 9 months of the year, to provide travel expenses for him- self and his family if they are not to lose touch with their district, and to have his family and personal life disrupted by the demands of an average 500,000 people he is elected to serve. Perhaps I could express it better this way: If standard of living and economic well- being were the sole considerations, a Congressman would be far better off with a $15,000 junior executive position, living all year in Terre Haute, Tv~zcson, or Tallahassee, than he would be at a $22,500 salary living in Washington most of the year but dividing his time between there and Arizona. To express congressional salary in terms of living standards and economic well-being un- der such conditions, one must discount thegross salary figure by 30 or 50 per- cent. In my bill, the salaries paid to Sen- ators and Congressmen would remain the same as those paid U.S. district judges. This traditional relationship is maintained even though most Members of Congress feel that congressional pay should be the same as the Federal circuit judges or the U.S. Supreme Court Judges. - Members of Congress have had no pay increase since 1955, despite the substan- tial increases in the cost of living and despite the fact that pay for other meni- bers of society has been increased several times. For example, the pay increase I propose for the Members of Congress amounts to some 55 percent. The typ- ical post office clerk since 1955, and in- eluding the pay raise I would provide for him In my bill, has had a total increase of 55 percent. It must be remembered that all the Members of Congress receive the same salary. Those who serve as chairmen of some of our most important commit- tees receive $22,500. The chairman of a major House or Senate committee may deal with the appropriation of billions of dollars of public money. The deci- sions he makes may affect the security, welfare, and economic well-being of mil- Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 1963 CONGRESSIONAL RECORD - HOUSE lions of Americans for years to come. In addition to presiding over the flood of legislation presented to his committee, the chairman must pay attention to the demands of at least 400,000 individual constituents and he must be careful, if he wishes to continue to serve, to visit his State or district often and to keep in close touch with its problems and its people. It is heartening to me to note that many State and local governments have recognized the need for adequate pay in their top positions of responsibility. Let me cite some of the salaries paid by State and local governments. In my own State, there are two city managers and two local school superintendents who are paid substantially more than the Mem- bers of Congress. Iii the city of Los Angeles, there are 19 officials, including 7 associate school superintendents, who receive more pay than the Members of Congress. The superintendent of schools of Chicago is paid $48,000 per year. The taxpayers of these city and State gov- ernments do not consider this a waste of public funds but an investment in good government and in efficiency. In the State of New York, there are more than 200 State judges with salaries greater than those paid Federal district judges in New York and the salaries range upward to $39,000 a year. Last year Congress created the Com- munications Satellite Corp., a quasi-pub- lie agency, to develop satellite commu- nications. - When the board of directors of.that corporation hired its first presi- dent, his salary was fixed at $1.00,000, nearly five times the pay of Members of Congress. There was hardly a word of criticism. Why? Because most people recognize that top pay is necessary to attract top talent in industry. Legislation of the kind I have spon- sored has had wide support. It is sup- ported now by the Chairman of the Civil This is the kind of management in- vestment the board of directors of Gen- eral Motors would approve almost with- out discussion. In my opinion the Fed- eral Government has a stake in good management too, and it can ill afford not to make such an investment in its greatest asset-the skills and experience of its top executives. Mr. Speaker, I include a summary of the annual cost of these proposed in- creases, plus those for all other levels of Government, In the RECORD at this point in my remarks: Summary of annual cost Title I-Classified and postal employees, etc______________ $508,000,000 Title II-Executive ----------- 6,700,000 Title III: Members, etc ------------ Legislative, etc__--_______ Title IV: Judges ------------------- Judicial,etc --------------- 6,900,000 7, 100, 000 7,200,000 3,600,000 Total__________________ 539,500,000 One often reads sentimental newspa- per stories which would suggest serious and shocking abuses in connection with the staff and payrolls of Members of Congress. I am happy to testify that the great and overwhelming majority of my colleagues are above any reproach in this regard. Yet, I concede that there -have been instances of staff pay prac- tices which the public may properly re- sent and I believe the public has a right to demand that work be performed by employees of the Federal Government for the pay they receive. Accordingly, my bill has two special features designed to meet in part some of these criticisms. Under my bill, no person having power to appoint subordinates in the executive or judicial branch of the Government will be able to employ his child, spouse, brother-in-law, son-in-law, cousin, or other close relative without specifying in the instrument of appointment the pre- filar recommendations were made by Iortn. A record open to the press and public will be President Eisenhower. The great I3oo- of all such appointments hiprovision ver Commission in its studies of efficiency d.I and believe thm most of f the e will in the Federal Government recommend- plaints discourage rlsc with to most cent ed drastic increases in Federal execu- tive pay as a means of maintaining the of relatives. Secondly, under present strength of the Federal Establishment. law there is no requirement that staff can employees of a Member of Congress per- My bill has been endorsed by the Ameri- can Bar Association, the National Civil form their duties at any particular place. Service League, and by many business There have been a few reported instances and professional groups. where a Member of Congress employed All right, I have given some of the a staff assistant who had his regular reasons why executive, congressional, residence at some place far removed legislative, and judicial salaries should State. Washington bill low or would the Member's hom- be be increased. I have indicated some of meat . salary bill to prohibit the pay- support for these increases, member unless any congressional are t stay Granted all this, can we afford them? I his duties ies are actually believe we can. performed in Washington or in the The total yearly cost of the salary in- Member's home State office, unless the - creases my bill provides for Members of waives such Cammia House Administration Congress, our Federal judges, Cabinet requirement. officers, Finally, I would say that I recognize agency heads, and other top ex- that this is a subject on which there are ecutives, plus the additional pay pro- very honest and very sharp differences vided for the key executive and man- of opinion and I respect the right of any agerial skills in the top four grades of the citizen to differ with me and to criticize classified system, amounts to $49 million. me as severely as he chooses. I fully This is five one-hundredths of 1 per- expect that the introduction of this bill cent of this year's budget. It would,run- will bring down upon me considerable the Defense Department for less than 8 ridicule and criticism, but I feel very hours, strongly about the necessity for the 18331 changes provided by my bill and I am perfectly willing to defend my position before those who elected me and be- fore anyone else who wishes to discuss constructively these serious problems. The Members of Congress are an out- standing, dedicated group. They have many hard and difficult decisions to make. One of the most. difficult fea- tures is that the Members of Congress are the only persons in the entire Fed- eral Establishment who have the respon- sibility of fixing their own pay. This re- sponsibility is doubly burdensome if the Member happens to serve, as I do, on the committee which has jurisdiction over Federal salaries. I would only urge that my colleagues in discussing this problem face it objectively and responsibly and make their decisions in a fair and rea- sonable manner, trying to allow for their direct and personal involvement in the decisions to be made. In its report the Randall Commission made this observation: We are convinced that our top salary structure no longer provides positive en- couragement to men and women of the highest ability, dedication, and conviction about the American way of life to accept Federal appointments in either the execu- tive branch or the judiciary, or to seek Fed- eral elective office with assurance that the financial demands upon them can, in most instances, be met from their salaries. Later the Randall panel made this observation: - Our country cannot afford to depend only upon rich men to run its affairs. Neither should we place excessive reliance on busi- ness executives on leave of absence who are both expected to, and want to, return to their companies after short periods of pub- lic service. Both may render valuable, un- selfish service, but, as we stated in our report to you in February 1962, "it seems to us bad public policy to make it difficult for others of comparable ability to serve the Government." In short, the Randall Commission held, and I hope the Congress will agree, that service in the Congress, in the Judiciary, and in the top positions of the executive agencies should not be Bitted to the wealthy or the incompetent. Passage of this long-overdue salary reform legislation will help insure that this is. never so. [From the New York Times Magazine, Sept. 15, 19631 U.S. PROBLEM: Low PAY FOR Top JOBS (By Clarence B. Randall) One of the great new freedoms that come to a man in retirement is the right to stick his neck out. Released from institutional responsibility, he can say exactly what he. thinks at all times. Furthermore, when the brickbats are thrown, they bounce off better than they did in earlier years. I know, be- cause plenty of them have been coming my way of late, thrown by both old friends and new enemies, by the business community and the press. This furor was all triggered when the Bu- reau of the Budget in Washington recently released to the press the report that I had submitted to the: President in behalf of the . so-called Pay Panel, the committee which the President had appointed to review sal- aries in various departments of the Federal Government, and which he had asked me to chair. Our report contained a series of rec- ommendations for pay- increases. Among Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0 CONGRESSIONAL RECORD - HC USE October 10 18332 these were proposals to raise the annual pay has 93. Pennsylvania 185, and New York 432 grounda for talent sthese day s, indeed and re'; alts a of Cabinet officers from #25,000 to 150,000. New York pays Its Governor $50,000, p public the salary of Congressmen from $22,500 to the use of the executive mansion, and th' offer of doubled pay just at the time when 335,000. and of Supreme Court Justices, the mayor of New York City receives 650,000. his children are ready for college. Vice President, and the Speaker of the House Los Angeles pays the general manager o' Yet sometimes he does just that. I knew from $35,000 to $80,000. Its water and power departments $40,56t. personally of a case where a career man who This provoked the storm. One of my fa- Florida pays the director of its Inter-Amen ' was earning about $14,000 a year was otf~red vorite newspapers. the Chicago Tribune. bon- can Trade Exposition 650.000, and In Boston the presidency of a corporation with a salary aired me with a blistering editorial. "What," the general manager of the transit authorit' of $50,000 if he would leave the Government. asked the Tribune, "have these people ever receives #40,000. In Chicago the salary of He turned It down. He was occupying a post done for us?" the superintendent of schools is 648,600. of great sensitivity at the time and felt that Two things bothered me about this up- Turning to other fields for comparison!. duty to his country had to be the controlling roar. First, most of those who were savage we found that in the United States there an motive in his life. One of the directors of in their attacks had quite obviously not read 81 college presidents who are paid in excer i the company had spoken to me about the the report. Second, their behavior reminded of $25,000. Among the large charttabl a matter in advance, and I had prophesied me unhappily of my own earlier years, when foundations there were 17 Instances in whit 1 that this would be the result. He persisted, I am afraid I, too, sounded off oecnssionally the principal full-time officer received in ex- and when he was turned down, he found the in hot anger before I had studied in depth cess of $35,000. A member of the Federt l refusal completely incredible. the subject upon which I was expressing Reserve System's Board of Governors receivt 5 During the past 15 years. and under three positive opinions. only $20,000, but in the Federal Reserve successive administrations, I have been priv- What disturbed me most was the fact that bankq themselves there are 19 officers who ileged senior observe career at firsthand rsand to do work nof almost without exception the press failed to are paid more than that. In private indu: - our noCVaaree ton, but in many of of list in full the names of the other members try on a sampling of 1,157 corporations Sr - only in ingt ton, but I They are the of the committee. Here they are: gaged in manufacturing we found that tie remote parts Gen. Omar Bradley; John J. Corson, of the median salary figure for the highest pad backbone of our Government, and -heir Woodrow Wilson School of Public and officer was 191,000. qualitydetermines s ~Qmgere some its tdee-whe are International Affairs, Princeton University: Naturally, such comparisons must not 1 e performance of their duties, Marion B. Folsom, of the Eastman Kodak controlling In this sensitive and s1 ificant careless are mediocre, as there are in Co.; Theodore V. Houser. former chairman of problem. but they are nevertheless challen:.; and some But there are many, I am proud Sears, Roebuck & Co.; Robert A. Lovett, of ing. As panel members we were fully coot- and nd business. i In the say. who are tsimply here superb, equal in every Brown Brothers Harriman; George Meany, mitted to the philosophy ? that there can 'to president of the American Federation of no money equivalent for the deep inner anti i- way say, way to the who to the best wprofessions, hfomI superb, or in any known of in in- Labor and Congress of Industrial Organiza- faction which comes to a man who 1s Prix I- dustry. the life. I the merit of these Lions; Don K. Price, Jr., of the Graduate leged to give a period of dedicated service other men that the pay panel feth se School of Public Administration. Harvard to his country, but we also believe that the to wa was and reward in order that more sik University; Robert Ramspeck, former Mem- who do not serve should share the sacrlfl;e recognize her of Congress from Georgia; Stanley F. of those who do. them may be persuaded to enter the Gov- Reed. Associate Justice (retired), of the U.S. So far I have discussed merely the problt in eminent service. Supreme Court, and Sydney Stein, Jr., of of an appointed officer, using a member of What will all this cost? Not over $20 Stein Roe & Farnham. the Cabinet as an Illustration. Obvious.y. million a year-even if everything that the Every man In that group not only had won however, similar situations exist outside of pay panel has recommended is put into effect. distinction in his own walk of life, but had the executive branch. A Justice of the S1- Large as this sum seems, it would hardly seen at firsthand over many years the Intl- prenie Court serves for life yet is paid ar be rated as a good typographical error in mate operations of our Government. And we le.:s than most of the members of the I ar computing the cost of sending a man to the were unanimous in our recommendations. I who present their cases before him. A Me n- moon. have served from time to time on other such her of Congress has to maintain two homes I do not intend by this to criticize the groups. but never before have I seen men of and two offices, one of each In his distl tct space program. but It does seem to me that such diverse backgrounds arrive at such solid and in Washington; he Is sharply limited in in establishing our priorities in the alloca- consensus as was the case here. the number of trips which he may make at tion of our public funds, nothing should have Why did we do what we did? public expense between the two places. "et precedence over what may be required to Take the case of the Cabinet officer first. the doctrine of the "consent of the govern, d" secure and keep In the Government service He must move to Washington at his own and the public welfare In a democracy clef riy the best of brains and character that can expense, maintain a home suited to his re- require the closest possible relationship te- be found in our country. sponsibility, do much entertaining for which tween the people and those who repres'nt he is not reimbursed, accept no outside In- them in Congress. COLUMBUS DAY, 1963 come whatever, not even for speaking en- The most pressing problem, however, the gagements, and stand ready to liquidate one which has been largely overlooked so far The SPEAKER pro tempore. Under whatever Investments he may have if he is in discussion of the pay panel's report. : nd charged with cpnflict of Interest. the one which gave us the deepest cone rn, previous order of the House, the gentle- I would be the first to agree that it would is the plight of the senior career office: in man from New York [Mr. Ra01eEY] is he unwholesome in a high degre if compensa- Government, the man who gives his en;ire recognized for 20 minutes. tion to Government were set at such levels l:f,- to the public service. Mr. ROO E Y of awd proper York.. Mr. that that men sought appointments as a matter The compensation of his chief put' a Speaker, it is of that of financial advancement, but it seems ceiling upon his own salary. Not only t fat. all the United States and equally clear to me that It is wrong to keep but there must be several grades in beta ern ica should pause on Columbus Day 1963 the compensation at such a low level that for the lesser appointive officers just be tow Italy as well as Christopher Co- many sons he Italy to on5 the first of well only rich men can be persuaded to accept the the top. In the executive branch there n ust honor responsibilities. Is intermediate pay levels below the rant of The present administration has put an Secretary for a Deputy Secretary, an U:,der who have come to our shores. emphasis on youth, and many able young Secretary. and Assistant Secretaries, be fore Christopher Columbus is indeed a .,ym- men were recruited for the public service. the point is reached where the appoir Live bol of the essence of the Italian spirit Already a disconcerting number have left, positions stop and the career grades begin. that has continually stressed new dis- returning to private life for "compelling per- For all practical purposes, therefore. vin- coveries from the days when Ronan le- sonal reasons." Naturally, I have never le^s a change is made in the salary of the gions sought new barbarisms to bring talked to a single one of them about it. but Cabinet Secretaries, no career officer who within the power of Pax Romana. I feel very certain that in many cases the enters the Government service upon lea ring live in financial sacrifice required was beyond their cc.tiege, and who gives his entire life to it can hanThe the world is a progress betetter r place rs to live n resources. e. er hope to earn more than 320,000 a 'ear, , tion has been greatly advanced and en- Nor do I understand why we permit the nit matter how great the responsibility w alch basic salaries in our Federal Government to he bears or how competent his perform; nee. ricked by the painters of Italy who dis- he established and maintained at levels be- Not only is this unfair to the individua:s on covered new ways to capture light and low those prevailing in our State and mu- tite basis of comparison with other voca ions Movement; by the sculptors of Italy who nlcipal units. which are open to them, but it places a transformed rock into flesh; and by the At the present time, a member of the severe limitation upon our Government'shen architects of Italy who have filled a Cabinet who as a Secretary heads one of the It comes to the recruitment of personnt 1. planet with grace and comfort. But, of departments which are so vital to our nn- That these levels of compensation are course, we need not stop with the past tionai welfare and safety, receives $25,000 a presently inadequate is graphically 'flue - see the eedCt of Italian discoveries year. Contrast this with the figures given trated by the number of occasions on v hich to our present mp and our future. di in our report for States and cities. such career men who are approachini the No men did more our make the world The State of California has 135 positions senior levels are hired away by Industry. To which pay more than $25,000 a year; Illinois businessmen Washington is a happy hu iting modern than did those voyagers on the Approved For Release 2005/06/03 : CIA-RDP66B00403R000500040029-0