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Adjusted gross income does not include would be "aimed at providing a broader The administration recommended reinterest on State and municipal bonds. and more uniform tax base" and at es- pealing the capital gains on coal royalIt does not include write-offs for drill- tablishing "a more equitable tax struc- ties. Not only did the House reject that; ing and developmental costs in the oil ture and a simpler tax law.” Originally, it extended this favorable treatment to and gas industry. It does not include that program was to be presented to us iron ore royalties. one-half of capital gains. All these were in 1962. It was delayed until 1963. These were all “reforms” which affect in addition,

When it came, it was, in some respects primarily the higher income taxpayers. But with respect to the figures on ad

ambitious, and in other respects timid. They were rejected. But many of the justed gross incomes, there were, I re- But it was an effort at tax reform. I so-called "reforms" affecting lower inpeat, five persons having incomes of more give the administration credit for the come taxpayers were approved, in whole than $5 million who did not pay a single original bill.

or in part-for example, the taxation of cent in taxes. Their real incomes were


a great deal of sick pay and of amounts probably much in excess of this, to the degree that they owned State and mu

But what did the House do with it after paid out on certain State taxes. Apart

considering it for no less than 7 months. from the repeal of the dividend credit, nicipal bonds, wrote off drilling and de

these in fact comprise the principal reyThe rollcall is a sad one. velopmental costs, and had capital gains,

The administration asked that action enue-raising reforms approved by the only one-half of which goes into adjusted

be taken to close up the gaping loophole House. gross income. in the capital gains tax treatment that

TREASURY HAS GIVEN UP ON REFORM AVERAGE FAMILY PAYS MORE TAXES permits between $12 and $13 million I But now, Mr. President, the Treasury These figures are shocking when one repeat $12 to $13 billion-to escape tax has given up on any efforts for the reconsiders that any worker with a wife entirely each year when property trans- forms rejected by the House. Supand two children who is earning just fers at death. The House rejected that posedly in the interest of quick enact$100 a week-$5,200 a year-an average entirely. The administration offered a ment of a tax cut, it has decided not to American-would, under current tax quid for that quo-namely, a reduction “renew” its request for any of the rerates, pay about $456 in Federal income in the capital gains rate for taxation of jected reforms. The only change in the taxes, at the same time that 5 per certain capital gains held more than 2 House bill asked by the administration sons having 1,000 times that worker's years. The House took the quid, but gave is the elimination of the lower capital income can get away with paying no no quo. It lowered the capital gains rate gains tax approved by the House on the taxes whatever. The need for reform to a maximum of 21 percent on many sensible ground that since nothing was would seem to be clear.

types of assets held more than 2 years done about the taxation of capital gains Of course not every multimillionaire and reduced the proportion of capital at death, there is no justification for escapes wholly tax free, as these five gains to be included in taxable income approving the other part of the “packmanaged to do. But the average multi- from 50 to 40 percent, but threw out the age.” But, in effect, Secretary Dillon millionaire comes surprisingly close to tax on transfers at death.

has invited the Congress again to give the achieving just that. According to Treas- The administration made a subsequent quid without the quo, by telling our ury Department figures, for which I offer to deduct from the capital gains committee, in response to one of my asked, and which are printed in part 1 any inheritance tax paid. For example, questions, that even if Congress gives of the hearings on the tax bill before if the capital gains amounted to $200,000, high income taxpayers the best of both the Committee on Finance, there were, but the inheritance tax paid was $50,000, possible worlds--doing nothing about in 1959, 37 people whose total incomes- the capital gains tax would be paid only closing the $12 billion gains-at-death including all the taxable part of their on $150,000.

gap, while at the same time easing the capital gains-came to more than $5 mil- Second, the administration offered to capital gains rate which goes almost lion and they paid, on the average, a levy the capital gains tax only upon the wholly to the wealthy—he will not reclittle less than 25 percent of their total actual sale of the properties and the ' ommend a veto of the bill. incomes in Federal income taxes. That actual realization on capital gains.

PROBABILITY OF NO ADDITIONAL REFORM AND is only somewhat higher than the first These proposals were rejected.

NO BILL THIS YEAR bracket rate of 20 percent.

The administration proposed four miWe hear great complaints about the nor cutbacks in the oil depletion allow- ment, made no real fight to get the bill

And since the Treasury, in my judg"confiscatory” top income tax rates of ance, totaling $185 million. The House

when it had that opportunity a month 90 and 91 percent. Those rates are too rejected three, and approved only one, high-but the fact is that the bark about for a revenue gain of only about $40 mil ago, when the bill came to us from the the tax rates is far, far worse than the lion--only a tiny fraction of the $3 bil- House, it is now in the position of prob

ably getting no bill this year and no rebite. Theoretically, if all of the income lion the oil industry gets of these multimillionaires were subject through depletion and the $2.5 billion it form. As usual, it is getting the worst

of both worlds. to the tax rate schedule currently in the gets through the intangible drilling and

And in view of the fact that, with 140 law, they would be paying to the Gov- development cost deductions. ernment taxes at the rate of about 90 The administration asked for a change witnesses already scheduled to testify bepercent. The fact is, though, they are in the capital gains on livestock. The fore the Finance Committee, and hear

ing these witnesses at the rate of 4 a day, paying less than 25 percent of their total House rejected this request. income in taxes or about the same pro

The administration asked for a repeal 5 days a week, or 20 a week, there is portions being paid by those with in

of the unlimited charitable deduction virtually no chance to get the tax bill comes of $20,000 to $50,000.

one of the features partially responsible this year, the excuse of the Treasury DeMr. President, I shall ask unanimous The House rejected this request. for the multimillionaires paying no taxes. partment for giving up on the reforms is

not well founded. consent that a table prepared by the Re

In his testimony before the House In fact, if the Treasury would help search Division of the Treasury Depart. Committee on Ways and Means, the Sec- both to publicize the loopholes and truckment be printed at the conclusion of my retary of the Treasury cited the case of holes and to fight alongside with us for remarks.

one man who was able to get a tax cut reforms, we could make improvements Mr. President, this table also will be of approximately $21 million on property without either delaying or jeopardizing found in part I of the hearings on the which had originally cost him less than the bill. tax bill before the Committee on Finance. $500,000.

But reforms are needed, not only be-
Secretary Dillon told our committee of

cause of the gross injustices in the tax Clearly, Mr. President, there are glar- value of $900,000. The administration large incomes pay very low taxes.

one tax-free insurance policy with a face system and the fact that those with very ing inequities in our tax system in urgent proposed ruling out such a "jumbo polneed of correction. In 1961, President icy.” The House did place a restric

NEED FOR FAIR OVERALL TAX SYSTEM Kennedy told the Congress that his ad- tion on such policies for working em

Reforms are needed also to keep our ministration was preparing a "compre- ployees but wholly exempted retired em- tax system, when taken as a whole, from hensive tax reform program" which ployees. For them, the sky's the limit. becoming a regressive system in which

CIX -1318

the low- and middle-income groups pay That was a cut of approximately $2.5 OVERWHELMING ARGUMENTS FOR TAX REFORM a higher proportion of their income in billion a year. But, prior to that, about Thus, there are overwhelming argutaxes than do high-income groups. another $2.5 billion a year was given to ments why tax reform is as important

At the moment, the Federal income tax the large taxpayers, by way of the ac- as tax reduction. is progressive. But this is greatly diluted celerated depreciation schdeules enacted Reform is necessary in support of and partially offset by the fact that those in 1954 and the dividend exclusion and simple justice. with big incomes escape taxation and credit passed at the same time. As a Reform is essential if the great mass also that some $10 billion of Federal result, corporations, and the high in- of ordinary people in this country are revenues are raised through the excise come individuals who receive the bulk not to rebel against a tax system which taxes which fall disproportionately on of corporation dividends have had a tax has in it such gross inequities and gross the poor and the weak.

cut, since 1954, which amounts to about injustices. STATE AND LOCAL TAXES REGRESSIVE $5 billion annually.

Reform is necessary if we are to keep Furthermore, when we look at the total

In addition, special bills, such as the even a semblance of the progressive sys

tem of taxation when State, local, and tax system, we note that, of the $54 bil- Du Pont bill and H.R. 10, whose benelion which the State and local govern- fits go largely to the wealthy and to upper Federal tax systems are viewed together.

Let us give equal weight to reform and ments collected in 1961, some $18 billion middle income professional groups, have was collected in property taxes, and an- also been passed. But, the ordinary tax- to tax cuts, in order to support simple

payer whose income is received in sal justice for the 90 percent of our taxother $12.5 billion in sales and gross receipts taxes, both of which categories aries and wages, and who neither evades

payers with incomes of less than $10,000 are regressive and fall disproportionately nor avoids almost any of his taxes, has

a year who now have no loopholes and on the low- and middle-income groups. had virtually no tax cut at all.

truckholes by which to avoid paying

In this connection, I point out that their fair share of our taxes. SINCE 1954, TAX CUTS TO BIG TAXPAYERS

there is virtually no evasion in the pay- Mr. President, I ask unanimous conFurthermore, the tax cuts passed since ment of taxes on wages and salaries. sent to have printed in the RECORD at 1954 have gone almost entirely to the The taxes are withheld at the source. the conclusion of my remarks a table large taxpayers. Last year we gave to In the debate last year on the withhold- dealing with certain matters I have discorporations and to their dividend recip- ing of taxes on dividends and interest, cussed. The table was prepared by the ients, about $2.5 billion in tax cuts by we pointed out that approximately 11 Office of Tax Analysis. way of the investment credit—which I percent of dividends did not pay taxes There being no objection, the table opposed—and the revision of the depre- and approximately 25 percent of interest was ordered to be printed in the RECORD, ciation allowances—which I approved. did not pay taxes.

as follows: TABLE 1.-Number of returns by effective tax rates, based on adjusted gross income by income classes (all returns with adjusted gross income

of $500,000 or more, 1959)

[blocks in formation]

I nominate him for appointment to the grade

of lieuenant general while so serving.

The following candidates for personnel acMr. HUMPHREY. Mr. President, in

Having designated, in accordance with the tion in the Regular Corps of the Public accordance with the order previously provisions of title 10, United States Code, Health Service subject to qualifications entered, I move that the Senate now take section 5232, Maj. Gen. Victor H. Krulak, therefor as provided by law and regulations: a recess to Monday, at noon. U.S. Marine Corps, for commands and other

To be senior assistant sanitary engineers The motion was agreed to; and (at 6 duties determined by the President to be

Charles D. Larson o'clock and 7 minutes p.m.) the Senate within the contemplation of said section, I

Francis M. McGowan took a recess, under the order previously nominate him for appointment to the grade

Donald W. Mantay entered, to Monday, November 4, 1963, at of lieutenant general while so serving.

To be assistant sanitary engineer 12 o'clock meridian.


Robert D. Shankland
Rear Adm. Wallace M. Beakley, U.S. Navy,
for appointment to the grade of vice admiral

To be senior assistant sanitarian on the retired list pursuant to the provisions

Gerald J. Lauer

of title 10, United States Code, section 5233. To be senior assistant dental surgeon Executive nominations received by the

John H. Holt Senate November 1 (legislative day of

To be assistant sanitary engineer October 22), 1963:


Fred M. Reiff
Executive nominations confirmed by

To be senior nurse officer
Lt. Gen. Robert William Porter, Jr., 018048, the Senate November 1 (legislative day

Kathryn M. Fritz Army of the United States (major general, of October 22), 1963:

To be sanitarian U.S. Army), for appointment as senior U.S.

Patrick A, Thibeau

NATIONAL SCIENCE FOUNDATION Army member of the Military Staff Commit

To be senior assistant sanitary engineer tee of the United Nations, under the provi

Dr. Robert S. Morison, of New York, to

Thomas C. Tucker sions of title 10, United States Code, section be a member of the National Science Board, 711. National Science Foundation, for the re

To be assistant sanitary engineers IN THE MARINE CORPS

mainder of the term expiring May 10, 1966. B. David Clark

NATIONAL LIBRARY OF MEDICINE Having designated, in accordance with the

Ira P. Leggett, Jr.

Joseph R. Tynsky provisions of title 10, United States Code, Dr. William Neill Hubbard, Jr., of Michi

To be assistant pharmacist section 5232, Maj. Gen. Leonard F. Chapman, gan, to be a member of the Board of Regents,

Jackie L. Knight Jr., U.S. Marine Corps, for commands and National Library of Medicine, Public Health other duties determined by the President to Service, for the term of 4 years expiring

To be senior assistant therapist be within the contemplation of said section, August 3, 1967.

C. Douglas Billion



Baltimore & Ohio Railroad Continues Rec- Southwest, through the St. Louis gate- the country. Congratulations and please ord of Progress and Service in West way, and correspondingly improved serv- convey my greetings to all in attendance. ice to the businessmen and citizens of the

JENNINGS RANDOLPH, Virginia—Morgantown (W. (W. Va.)— Mountain State.

U.S. Senator. Dominion-News Commends Recent Im

It has recently been my privilege to provements in Main Line Between Baltimore & Ohio Railroad, Mr. Jervis correspond with the president of the THE BALTIMORE & OHIO RAILROAD Co.,

Baltimore, Md., October 30, 1963. Clarksburg and Parkersburg-Presi- Langdon, Jr., congratulating his efficient Hon. JENNINGS RANDOLPH, dent Jervis Langdon, and Many West organization on recent additions and im- Senate office Building,

Washington, D.C. provements. I likewise pointed out the Virginians Have Made Notable Contri- immeasurable benefit which has come to your thoughtfulness in sending the tele

DEAR SENATOR: Thank you very much for butions to Transportation West Virginia as a direct result of the

gram to me at Parkersburg yesterday. It enterprise and dependability of the arrived at the end of a luncheon we held B. & O.

on the special train which had come over EXTENSION OF REMARKS

I request that this correspondence be from Clarksburg during the morning. OF printed in the RECORD.

The project, I am sure, will be a great HON. JENNINGS RANDOLPH Mr. President, the experienced and success and I look forward to a substantial

respected editor and publisher of the increase in B. & O. traffic not only through Morgantown (W. Va.) Dominion News, stations in that great State.

northern West Virginia but to and from our IN THE SENATE OF THE UNITED STATES Walter L. Hart, commented meaning- Sincerely, Friday, November 1, 1963 fully on the contributions of the Balti

JERVIS LANGDON, Jr., Mr. RANDOLPH. Mr. President, in more & Ohio Railroad to the develop

President. 1838 the Baltimore & Ohio Railroad be- ment in our State. In his October 31 edigan construction of the first railroad torial, “B. & O. Deserves Our Applause,”

B. & O. DESERVES OUR APPLAUSE tracks in West Virginia, building west- Editor Hart stresses the importance of ward from Harpers Ferry. In the centhe new main line improvements. Fur

We join with all progressive West Vir

ginians in congratulating the Baltimore & tury and a quarter which has elapsed ther, he states that

Ohio railroad for its great main line imsince then, the development of the rail- We in West Virginia salute the railroad provement between Clarksburg and Parkersroad has provided significant contribu- and hope, under its new management, it burg. tions to the economy of West Virginia, signed to increase its service to the shippers portant railroad is of vital concern to every

The prosperity-or lack of it—of this imand to the well-being of its citizens.

of the world and in doing so become more Among the responsible individuals who

West Virginian because the B. & O. is a valuable to all the areas it serves, including major taxpayer and in its continued proghave been instrumental in the B. & O.'s

our own State of West Virginia. success in the Mountain State were the

ress all of us have a real stake.

This main line improvement makes it late Charles W. Van Horn, of Lost Creek,

I request that Mr. Hart's editorial be

possible to haul all major freight items W. Va., who was vice president in charge printed in the RECORD. of operations for many years. Another There being no objection, the material on the most

direct route to the great Southleader was the former Governor of our was ordered to be printed in the RECORD, is expected to greatly increase the revenues State, the Honorable John J. Cornwell, of as follows:

of the railroad. Romney, who for some time acted as Mr. JERVIS LANGDON, Jr.,

OCTOBER 29, 1963. Adding this to the forward look the railgeneral counsel of the line.

road has adopted in pioneering on unit coal President, Baltimore & Ohio Railroad Co., freight trains and other projects designed to And, the concern for progress and Parkersburg, W. Va.: service which was so evident in frontier

make the railroad a better facility for its Sincerely regret Senate business here pre

customers and therefore a more profitable days has not diminished with the years, vents my participation in your program

enterprise certainly is most desirable from but continues to expand and to bring diner today. Your company has contributed forth achievement and benefit. A nota- much to the economic development of West all standpoints.

We in West Virginia salute the railroad ble example of growth is the recent com- Virginia and to the well-being of the citizens pletion of important main line improve- of our State. It is especially appropriate and hope under its new management it conments in the B. & O. system between is the new B. & O. as it meets its responsibilthat in this centennial year the old B. & O.

tinues to make progressive moves designed to

increase its service to the shippers of the Clarksburg and Parkersburg, W. Va. ities for improved transportation vital to the world and in doing so become more valuable

This improved line will provide a direct movement of coal and other traffic across our to all the areas it serves including our own route for major freight shipments to the State and throughout an important part of State of West Virginia.

HOUSE OF REPRESENTATIVES sponsibility to help mankind bear its that the Senate had passed a bill of the

burdens and carry on with courage and following title, in which the concurrence hope.

of the House is requested: MONDAY, NOVEMBER 4, 1963 May we earnestly and sincerely seek

S. 1129. An act for the relief of Thomas B. The House met at 12 o'clock noon.

Thy divine guidance as we pledge our- Bollers and Earlene Bollers. The Chaplain, Rev. Bernard Braskamp, selves with wholehearted devotion to the

The message also announced that the D.D., offered the following prayer:

great task that righteousness and justice, Romans 13: 12: Let us therefore cast the earth. mercy and charity shall never pass from Senate agrees to the amendments of the

House to a bill of the Senate of the of the works of darkness, and let us put

Hear us in Christ's name. Amen.

following title: on the armour of light.

S. 310. An act for the relief of Kaino Hely O Thou God of all comfort and Father

Auzis. of all mercies, whose spirit of compas

THE JOURNAL sion broods over stricken and struggling

The Journal of the proceedings of humanity, grant that in these days of Thursday, October 31, 1963, was read A WILD IDEA: SUPER STATE world darkness our minds and hearts and approved.

DEPARTMENT may be aglow with the light of lofty idealism.

Mr. CASEY. Mr. Speaker, I ask Emancipate us from selfishness and


unanimous consent to address the House complacency and give us hearts to feel A message from the Senate by Mr. for 1 minute, to revise and extend my reand eyes to see that it is our moral re- McGown, one of its clerks, announced marks, and to include extraneous matter. The SPEAKER. Is there objection Reflecting on his tour of duty in Belgrade,

OPERATIONS HAMPERED to the request of the gentleman from Mr. Kennan said that domestic-political con

"This hampered our operations and had, siderations had led Congress to act against in a number of instances, what I considered Texas?

Yugoslavia last year "in the face of the most There was no objection.

to be adverse effects on our operations in the solemn and formal warnings and objections field.” Mr. CASEY. Mr. Speaker, I want to on my part, conveyed to congressional lead

He also criticized long delays in getting call your attention to an article in yes- ers on many occasions and in many ways."

authorization to spend money-even on certerday's Washington Star as well as the Mr. Kennan was referring to the decision, tain improvements in the embassy. Washington Post concerning the mem

taken suddenly by the last Congress, to for- "I should think that if a man enjoys such orandum submitted by Mr. George F. bid any Communist country from being en

confidence on the part of his government titled to most-favored-nation treatment in that he can be entrusted with the responKennan, former Ambassador to Yugo- this country. Such treatment grants normal slavia, in which Mr. Kennan has sent

sibilities of an important diplomatic mistariff reductions to a country and allows it sion, it ought also to be possible to entrust a memorandum to a Senate committee an equal opportunity to trade in the U.S. him with a limited control over funds, not stating that he is quite disturbed with market.

major funds, just governmental pocket congressional politics interfering with


money, so that he could at least make minor our foreign affairs and our foreign policy. The removal of such treatment to Commu- dispositions affecting government property He has particularly noted the House's nist countries had an immediate political at his post, without waiting years for apaction in removing Yugoslavia and other effect, since it clashed with administration proval," he said. Communist countries as most favored policy to encourage Communist nations to

seek closer ties with the West. nations. What is Mr. Kennan's solu

Yugoslavia and Poland are the two Comtion? His solution is that possibly we

SPECIAL ORDER TRANSFERRED munist countries which presently receive might set up a Secretary of State office most-favored-nation treatment. The ad- Mr. HOEVEN. Mr. Speaker, I ask as something in the nature of a Prime ministration has attached to the foreign aid unanimous consent that the special order Minister. Such a change, he said, authorization bill now before the Senate a

granted to me for tomorrow be transwould gain acceptance by all parties of provision restoring to Presidential discre

ferred until Wednesday, November 6. the principle that the external problems tion the right to make such concessions to

The SPEAKER. Without objection, it of the country should be given prece

any nation if it is in the national interest
to do so.

is so ordered. dence over the internal ones, and that

Mr. Kennan's views were released in a There was no objection. foreign policy should not be permitted memorandum he sent to the Subcommittee to become a function of domestic-polit- on National Security Staffing and Operations, ical convenience. at the request of the chairman, Senator

PROPOSED CHANGE IN ALCOHOL I do not know that I am equal to Mr. JACKSON, Democrat, of Washington.

A former Ambassador to Russia and auKennan in educational background or

BEVERAGE CONTROL BOARD NOT brilliance, but I do think he should re

thor of many books on Soviet policy, Mr. IN THE PUBLIC INTEREST

Kennan said that if he had known “how litfresh his memory in history as to how tle value the Congress would assign to my Mr. SPRINGER. Mr. Speaker, I ask this country started and the basis on

own judgment, in the light of nearly 30 unanimous consent to address the House which it has grown that ours is a gov- years in the affairs of the eastern European for 1 minute and to revise and extend my ernment of the people and by the people area,” he would not have accepted the Yugo- remarks. and that our Government receives its slav assignment.

The SPEAKER. Is there objection powers by consent of the governed. I


to the request of the gentleman from think we fought a revolution to get away Mr. Kennan's views are quite similar to Illinois ? from just what he is advocating.

those expressed privately by many State De- There was no objection. I think Mr. Kennan should realize partment specialists in communist affairs.

Mr. SPRINGER. Mr. Speaker, many what every schoolboy knows: that the re- They believe that there is so much diversity

Members have asked me the last week of sponsibility for legislation belongs to the

in the Red world today that it often is in
this contry's interest to trade or otherwise

my objections and those of the District Congress and that the Congress is the improve relations with different Communist

Commissioners to the proposed revision voice of the people of this United States. countries.

of the District liquor laws which will I am a bit weary of diplomats, and others

The officials often assert that Congressmen come up on Wednesday of this week as who are not responsible to the people of and Senators, in an effort to win political H.R. 8920. this country, assuming the role of papa support in their home areas, vote on certain

The subcommittee had extensive hearknows best and saying that they alone foreign policy measures, without due con

ings on this bill last year and again this know what is good for the people of the

sideration to the national good.
Mr. Kennan suggested that foreign policy

year. I was opposed to the bill, and I United States and for this country. be removed from domestic politics. He ad

am opposed to it now. Mr. Speaker, it will be a sad day for

vocated raising the Secretary of State's of- The heart of this bill sets up the Alour great country if the Congress should fice to something "in the nature of a prime coholic Beverage Control Board as an inever relinquish its right and responsibil - minister.”

dependent agency. In so doing, it reity to speak the will of the people of this Such a change he said, would mean ac

moves from the Board of Commissioners country through the individual Members ceptance by all parties of "the principle that the external problems of the country should

the right to supervise the ABC Board. of Congress. be given precedence over the internal ones,

In addition, it removes the right of the I want to point out one other thing and that foreign policy should not be per

Commissioners to set the regulations which the distinguished gentleman finds mitted to become a function of domestic- which will be administered by the ABC fault with, and that is that the State political convenience."

Board. Responsibility for government in Department cannot overrule other ex


the District of Columbia rests with the ecutive departments. He finds fault with

Mr. Kennan also charged that State De

District Commissioners. Under both the Immigration Service, as well as the partment policy was hampered by interfer

Democrat and Republican administraFBI. In other words, Mr. Kennan thinks ence from other governmental agencies. He tions the District Board of Commissionthat the State Department should be all singled out the Immigration Service and the ers has been of a high order. I do not superior, not only over other executive Federal Bureau of Investigation for special

believe this could be said to be true of branches, but the legislative as well.

criticism in the matter of passports, visas, the ABC Board. When mistakes have

and reentry permits. Mr. Speaker, the article from the

According to Mr. Kennan, many people

been made by the ABC Board, the DisWashington Star that I refer to follows: in those two agencies have acted in ways

trict Commissioners have been prompt [From the Sunday Star, Washington, D.C., contrary to the policy of the State Depart

in correcting the situation.
Nov. 3, 1963]
ment regarding Yugoslavia.

It appears to me that this bill is CONGRESSIONAL POLITICS HURT FOREIGN

The administration does not consider tailored to the interests of the liquor inPOLICY, KENNAN SAYS

Yugoslavia a member of the Soviet bloc, but dustry in the District of Columbia. It is (By Bernard Gwertzman)

Mr. Kennan says he had the impression that strongly backed by what has been de

"many of the people (in the Immigration George F. Kennan, one of this country's Service and the FBI) were going on the as

scribed generally as the liquor lobby. leading experts on Communist affairs and un- sumption that Yugoslavia was a member of

In my opinion this bill is not in the til recently Ambassador to Yugoslavia, the Soviet bloc, a thesis contrary to our own

public interest, and in the long run it will charged yesterday that congressional politics observations and to the established analysis work against the interests of the people had played havoc with U.S. foreign policy. of the department."

who reside in the District.



made. There will be a further restricThe Clerk called the bill (H.R. 5838)

tion, I will say to my distinguished TION to amend the act of March 3, 1901 (31

friend—a further restriction that a Mrs. GREEN of Oregon. Mr. Speaker, Stat. 1449), as amended, to incorporate

chapter house be constructed on the I ask unanimous consent the conferees in the Organic Act of the National Buon the part of the House have until mid- reau of Standards the authority to make property and used for that purpose. night tonight to file a conference report certain improvements of fiscal and adcertain improvements of fiscal and ad- That is why we are making this special

arrangement. on H.R. 6143. ministrative practices for more effective

Mr. GROSS. On page 3 of the report The SPEAKER. Without objection, it conduct of its research and development activities.

the Comptroller General says: is so ordered.

We also suggest for your consideration the There was no objection.

The SPEAKER. Is there objection to the present consideration of the bill?

desirability of providing that the purchase Mr. FORD. Reserving the right to price, which is for repayment in the event

of reversion, be made applicable to outstandobject, Mr. Speaker, I note that a rule ing liens on the property at the time of CONSENT CALENDAR

has been granted on this proposed leg- reversion. The SPEAKER. This is Consent Cal-islation. I therefore assume it will be lendar day. The Clerk will call the first programed at some later date. It is leg with this subject? If so, will the gentle

Does the bill contain language dealing bill on the Consent Calendar.

islation that has rather far-reaching

man point it out to me. I could not find

I withdraw my reservation and ask the language in the bill. ACQUISITION OF PROPERTY IN that the bill be passed over without

Mr. BROOKS. It is not in the bill;

no, sir. The bill is not involved in that SQUARE 758 IN DISTRICT OF prejudice. COLUMBIA

The SPEAKER. Is there objection argument. The bill provides for the sale The Clerk called the bill (S. 254) to

to the request of the gentleman from of this land at the appraised fair market Michigan?

value which we anticipate to be in the provide for the acquisition of certain

There was no objection.

neighborhood of $50,000 with the obligaproperty in square 758 in the District of

tion of the Red Cross to build a chapter Columbia as an addition to the grounds

house there. If they do not do so they of the U.S. Supreme Court Building.

are not going to get to keep the land. Mr. GROSS. Mr. Speaker, I ask CONVEY LAND IN MARYLAND TO The Senate had passed this bill. The unanimous consent that this bill be


House passed the bill last year. passed over without prejudice.

The Clerk called the bill (S. 876) to Mr. GROSS. Then this provision is
The SPEAKER. Is there objection to authorize the Administrator of General not contained in the bill?
the request of the gentleman from Iowa? Services to convey certain land in Prince Mr. BROOKS. No. However, in the
There was no objection.

Georges County, Md., to the American committee report it is stated that:
National Red Cross.

Provisos are included in the bill specifying

The SPEAKER. Is there objection to that (a) the land shall revert to the Federal FACILITATING THE WORK OF THE the present consideration of the bill? Government in the event that the Red Cross DEPARTMENT OF AGRICULTURE Mr. GROSS. Mr. Speaker, reserving has failed to commence construction of its The Clerk called the bill (H.R. 7155) the right to object, I would like at least chapter house within 2 years after the con

veyance or (b) fails to complete construction to facilitate the work of the Department a brief explanation of this bill.

thereof within a reasonable time after such of Agriculture, and for other purposes.

Mr. BROOKS. Mr. Speaker, will the construction begins; also, (c) in the event of Mr. GROSS. Mr. Speaker, I ask gentleman yield?

such reverter, the cost of any damages to the unanimous consent that this bill be Mr. GROSS. I am glad to yield to the property shall first be deducted before repassed over without prejudice. gentleman.

payment of the balance of the purchase price

is made to the Red Cross. It is the intent The SPEAKER. Is there objection to Mr. BROOKS. I would be pleased to

of the committee that the term “damages," the request of the gentleman from Iowa? say, Mr. Speaker, that this bill author

as used in the legislation, shall include, but There was no objection.

izes the Administrator of General Serv- not be limited to, any outstanding liens on ices to sell 242 acres of surplus Federal the property at the time of reversion, in the

land in Prince Georges County to the event such occurs. SAINT-GAUDENS NATIONAL HISAmerican National Red Cross at the fair

Mr. GROSS. I refer the gentleman to TORIC SITE, N.H.

market value of such land at the time of page 2 of the bill and ask him what is sale.

The Red Cross maintains a meant by this language: The Clerk called the bill (H.R. 4018)

chapter house in Prince Georges County to authorize establishment of the Saintwhich has become inadequate for the

The Secretary of the Treasury is authorized Gaudens National Historic Site, N.H., performance of its public services in that

upon such reverter to pay from the general and for other purposes.

funds of the Treasury to the American Naarea and due to large Federal land holdMr. GROSS. Mr. Speaker, I ask ings they have had some difficulty in

tional Red Cross the amount, without inunanimous consent that this bill be

terest and less any damage to the land as locating a site adequate for a new determined by the Administrator, paid by passed over without prejudice.

chapter house. Although the Red Cross the American National Red Cross to the The SPEAKER. Is there objection to the request of the gentleman from Iowa? poration created by Congress for the pur

is a nonprofit organization and is a cor- United States for such property. There was no objection.

Does this mean that if the property pose of rendering public services, techni- reverts to the U.S. Government, the U.S. cally it does not qualify under the provi- Treasury is going to pay the National

sions of law for any priority nor is the Red Cross for some loss that may accrue LAKE ERIE SESQUICENTENNIAL Administrator of General Services au

to the National Red Cross because of The Clerk called the bill (S. 1828) to thorized to transfer or sell surplus their failure to take over and hold the amend the joint resolution establishing Federal land to the Red Cross by

Red Cross by property? the Battle of Lake Erie Sesquicentennial negotiated contract.

Mr. BROOKS. No. The interpretaCelebration Commission so as to author- Mr. GROSS. Let me ask this ques- tion would be better stated in accordize an appropriation to carry out the tion: Is it understood that this Govern- ance with the language, in saying that provisions thereof.

ment land will command an appraised if it goes back to the Government the Mr. PELLY. Mr. Speaker, I ask price of $50,000, or is it going to be lower Red Cross would be able to get its money unanimous consent that this bill be when they get around to selling the back, less any damages to the land, and passed over without prejudice. land?

the term “damages” would include outThe SPEAKER. Is there objection to Mr. BROOKS. I believe you can be standing liens on the land. the request of the gentleman from Wash- sure we will look at the appraisal. The Mr. GROSS. I just do not want ington?

preliminary appraisal has been in the money to go out of the U.S. Treasury to There was no objection.

neighborhood of about $50,000, and this pay the Red Cross for any damage or

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