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"APPROPRIATIONS

RECORD

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Mr. FORAND. Mr. Chairman, I offer an amendment, being one of the amendments included in the RECORD of yesterday.

The Clerk read as follows:

Amendment offered by Mr. FORAND: Page 2, after line 9, insert:

"SEC. 3. (a) Effective as of July 1, 1956, section 1603 (a) of the Internal Revenue Code is hereby amended by redesignating paragraph (6) as paragraph (8) and by inserting after paragraph (5) the following new paragraphs:

"(6) The maximum weekly compensation payable under such law shall be an amount equal to at least two-thirds of the average weekly wage earned by employees within such State, such average to be computed by the State agency of such State on July 1, 1956, and on July 1 of each succeeding year on the basis of the wages, including the amounts excluded therefrom under section 1607 (b) (1), paid during the last full year for which necessary figures are available;

"(7) The weekly compensation payable to any individual shall be (A) the maximum weekly compensation payable under such law, or (B) an amount (exclusive of any compensation payable with respect to dependents) equal to at least one-half of such individual's average weekly wage as determined by the State agency, whichever is the lesser;'.

"(b) Effective as of July 1, 1956, section 1607 of the Internal Revenue Code is hereby amended by adding at the end thereof the following new subsections:

"(p) Benefit year: The term "benefit year" means the period prescribed by State law, but not in excess of 52 consecutive weeks, for which an eligible individual may

receive weekly unemployment-compensation

benefits.

"(q) Base period: The term "base period" means the period prescribed by State law beginning not prior to the first day of the fifth full calendar quarter beginning prior to the benefit year.

"(r) High quarter wages: The term "high quarter wages" means, in the case of any individual, the amount of wages (as defined by State law) paid to such individual in the calendar quarter of the base period for which his total wages were highest.

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"(s) Average weekly wage: The term "average weekly wage" means, in the case of any individual, the amount of wages (as defined by State law) paid to such individual during the period used for determining his compensation for a week of total unemployment (1) in case the period used is the calendar quarter in which such individual was paid his high quarter wages, divided by 13; or (2) if some other period is used, divided by the number of weeks, during the period used, in which he performed services in employment (as defined by State law).'”

Renumber the sections of the bill which follow accordingly.

-

Mr. FORAND (interrupting the reading of the amendment). Mr. Chairman, I ask unanimous consent that the further reading of the amendment be dispensed with and that it be printed in the RECORD at this point.

The CHAIRMAN. Is there objection to the request of the gentleman from Rhode Island?

There was no objection.

Mr. FORAND. Mr. Chairman, I think I can save the time of the committee if I just say a few words on the amendment. I will say for the benefit of the members of the committee that this is the first amendment which has been discussed so much this afternoon. It

has to do with the fixing of the amount of benefits that would be payable weekly. It provides for a maximum of twothirds of the State's average weekly wage in the State and a minimum of not less than 50 percent of the average weekly wage of the individual.

I urge adoption of the amendment. Mr. REED of New York. Mr. Chairman, I rise in opposition to the amendment.

Mr. Chairman, the amendment to force the States to increase the amount of benefits was considered and rejected by the Ways and Means Committee.

The administration opposes this amendment as well as the next amendment to be offered.

The President has called the present level of benefits inadequate and has urged the States to take legislative action raising their benefit payments. In the economic report of the President of January 1954, the President stated as follows:

It is suggested that the States raise these dollar maximums—

Referring to benefit levels

so that the payments to the great majority of the beneficiaries may equal at least onehalf their regular earnings.

However, the administration definitely opposes the pending proposal to reach this objective by imposing Federal standards on the States.

This amendment which is now being offered to H. R. 9709 would propose for the first time in the history of the unemployment compensation program a Federal standard for benefit levels under the act. Such a Federal standard would result in the denial to the respective States of the right to determine proper benefit levels for the unemployed in the State. It would deny the States the right to determine benefit amounts based on the economic needs of its citizens and the economic conditions existing within the State. It is my opinon that the Members of the House should vote to defeat this amendment so that the States would continue to have the right to establish appropriate benefit levels. I am confident that, given time, the States will take whatever action is necessary to adopt appropriate improvements in their unemployment insurance programs.

Mr. HALLECK. Mr. Chairman, I think it ought to be understood that this measure that the committee has reported and which is presently before us is a very important part of the administration program. At the same time, I think it should be understood that the amendments that are offered, which would, in effect, federalize the system and remove from the States the powers and rights that they had heretofore had, are not in line with the program. So, I trust that these amendments will be defeated.

The CHAIRMAN. The question is on the amendment offered by the gentleman from Rhode Island [Mr. FORAND]. The amendment was rejected. Mr. FORAND.

an amendment.

Mr. Chairman, I offer

The Clerk read as follows: Amendment offered by Mr. FORAND: Page 2, after line 9, insert:

"SEC. 3. Effective as of July 1, 1956, section 1603 (a) of the Internal Revenue Code is hereby amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

“(6) Compensation shall not be denied to any eligible individual for any week of total unemployment during his benefit year by reason of exhaustion or reduction of benefit rights or cancellation of his wage credit until he has been paid unemployment compensation for not less than 26 weeks during such year. For purposes of this paragraph, the term "benefit year" means the period prescribed by State law, but not in excess of

52 consecutive weeks, for which an individual may receive weekly unemployment-compensation benefits.'

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Renumber the sections of the bill which follow accordingly.

Mr. FORAND. Mr. Chairman, this is a very simple amendment. It simply says that we are going to try to carry out the suggestions that the President made to the States. When my friends on the other side of the House tell us that we are trying to federalize the system I say to them that when the original act was written certain standards were written into that act. This is simply another standard. Therefore, if this means federalizing the system, then we federalized it from the beginning.

The fear I have today is that again we are going to continue to procrastinate; we are going to put off; we are going to study; we are going to have other things done; we are going to stall, and stall, and stall. And in the meantime we will be letting the people suffer. If that is the position the opposition wants to take, I say go ahead. For my part, I am doing everything I possibly can to bring about a remedy to a situation that needs attention right as of this moment.

I sincerely hope we shall have a favorable vote on this amendment.

Mr. REED of New York. Mr. Chairman, I rise to express opposition to this amendment which has as its purpose the establishment of Federal standards which prescribe the minimum period during which unemployment compensation benefits will be paid. As was true with respect to the previous amendment Mr. HALLECK. Mr. Chairman, will which the House has just defeated, the the gentleman yield?

matter of the duration of benefits is one Mr. REED of New York. I yield to the that has historically been left to State gentleman from Indiana. determination. The administration op

poses this amendment. The President has advocated that any action to increase the duration of benefits be taken by the respective States. I will not repeat the argument I made with respect to the other amendment, but merely call the attention of the House to the fact that those arguments are equally applicable here. This amendment is an undue invasion on what has historically been the sovereign right of our respective States, and I urge that the Members vote to defeat the amendment.

The CHAIRMAN. The question is on the amendment offered by the gentleman from Rhode Island [Mr. FORAND]. The amendment was rejected.

The CHAIRMAN. Under the rule, the Committee rises.

Accordingly the Committee rose; and the Speaker having resumed the chair, Mr. HOEVEN, Chairman of the Committee of the Whole House on the State of the Union, reported that the Committee having had under consideration the bill (H. R. 9709) to extend and improve the unemployment compensation program pursuant to House Resolution 614, he reported the bill back to the House.

The SPEAKER. Under the rule, the previous question is ordered.

The question is on the engrossment and third reading of the bill.

The bill was ordered to be engrossed and read a third time and was read the third time.

Mr. FORAND. Mr. Speaker, I offer a motion to recommit.

The SPEAKER. Is the gentleman opposed to the bill?

Mr. FORAND. I am.

The SPEAKER. The gentleman qualifies. The Clerk will report the motion to recommit.

The Clerk read as follows:

Mr. FORAND moves to recommit the bill H. R. 9709 to the Committee on Ways and Means with instructions to report the same to the House forthwith with amendments as follows:

Page 2, after line 9, insert the following: "SEC. 3. (a) Section 1603 (a) of the Internal Revenue Code is hereby amended by redesignating paragraph (6) as paragraph (9) and by inserting after paragraph (5) the following new paragraphs:

"(6) The maximum weekly compensation payable under such law shall be an amount equal to at least two-thirds of the average weekly wage earned by employees within such State, such average to be computed by the State agency of such State on July 1, 1956, and on July 1 of each succeeding year on the basis of the wages, including the amounts excluded therefrom under section 1607 (b) (1), paid during the last full year for which necessary figures are available;

"(7) The weekly compensation payable to any individual shall be (A) the maximum weekly compensation payable under such law, or (B) an amount (exclusive of any compensation payable with respect to dependents) equal to at least one-half of such individual's average weekly wage as determined by the State agency, whichever is the lesser;

"(8) Compensation shall not be denied to any eligible individual for any week of total unemployment during his benefit year by reason of exhaustion or reduction of benefit rights or cancellation of his wage credit until he has been paid unemployment compensation for not less than 26 weeks during such year;'

"(b) Section 1607 of the Internal Revenue Code is hereby amended by adding at the end thereof the following new subsections: "(p) Benefit year: The term "benefit year" means the period prescribed by State

law, but not in excess of 52 consecutive weeks, for which an eligible individual may receive weekly unemployment compensation benefits.

"(q) Base period: The term "base period" means the period prescribed by State law beginning not prior to the first day of the fifth full calendar quarter beginning prior to the benefit year.

"(r) High quarter wages: The term "high quarter wages" means, in the case of any individual, the amount of wages (as defined by State law) paid to such individual in the calendar quarter of the base period for which his total wages were highest.

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'(s) Average weekly wage: The term "average weekly wage" means, in the case of any individual, the amount of wages (as defined by State law) paid to such individual during the period used for determining his compensation for a week of total unemployment (1) in case the period used is the calendar quarter in which such individual was paid his high quarter wages, divided by 13; or (2) if some other period is used, divided by the number of weeks, during the period used, in which he performed services in employment (as defined by State law).'

"(c) This section shall take effect as of July 1, 1956."

And renumber the sections of the bill which follow accordingly.

Mr. REED of New York. Mr. Speaker, I move the previous question on the motion to recommit.

The previous question was ordered. The SPEAKER. The question is on the motion to recommit.

The question was taken; and on a division (demanded by Mr. FORAND), there were-ayes 34, noes 91.

Mr. FORAND. Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

The SPEAKER. Obviously a quorum is not present.

The Doorkeeper will close the doors, the Sergeant at Arms will notify absent Members, and the Clerk will call the roll.

The question was taken; and there were-yeas 110, nays 241, not voting 83, as follows:

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Hoffman, Ill.

Bishop

Bolton,

Oliver P.
Bosch
Bramblett
Brooks, La.
Brooks, Tex.

Brown, Ga.
Brown, Ohio
Brownson
Broyhill
Budge
Burleson
Bush

Byrnes, Wis.
Campbell
Carlyle
Carrigg
Cederberg
Chelf

Chenoweth
Chiperfield
Church
Clardy
Clevenger
Cole, Mo.
Cole, N. Y.
Colmer

Cooley
Cooper

Coudert
Cretella
Crumpacker
Cunningham
Curtis, Mass.
Curtis, Mo.
Dague

Davis, Ga.
Davis, Wis.

Dawson, Utah

Derounian

Devereux

D'Ewart

Dies
Dolliver

Dondero

Dorn, S. C.

Edmondson
Fenton
Fernandez

Ford

Forrester

Poff
Prouty
Ray

Reece, Tenn.
Reed, Ill.
Reed, N. Y.
Rees, Kans.
Rhodes, Ariz.
Riehlman
Riley
Rivers

Robsion, Ky.
Rogers, Fla.

Rogers, Mass.

Rogers, Tex.

St. George

Hoffman, Mich. Saylor

Schenck

Scherer

Scrivner

Scudder

Seely-Brown

Holmes

Holt

Hope

Horan

Hosmer

Hruska

Hunter

Selden
Sheehan

Hyde

Ikard

Jackson

James

Jarman

Jenkins

Jensen

Jonas, Ill.
Jonas, N. C.
Jones, Mo.
Jones, N. C.

Judd

Kean

Kearney
Kearns
Keating
Kilburn
King, Pa.
Knox
Krueger
Laird
Latham
LeCompte
Lipscomb
Lovre
McConnell
McCulloch
McDonough
McIntire
McMillan

McVey
Mahon

Mailliard

Martin, Iowa
Mason
Matthews

Meader

Merrill

Merrow

Miller, Kans.

Sikes

Simpson, Ill.

Simpson, Pa.

Small

Smith, Kans.

Smith, Miss.
Smith, Va.
Smith, Wis.
Springer
Stauffer
Steed

Stringfellow
Taber
Talle
Teague
Thomas
Thompson,
Mich.
Thornberry
Trimble

Tuck
Utt
Van Pelt
Van Zandt
Velde
Vinson

Vorys
Vursell

Wainwright
Warburton
Watts
Westland
Whitten
Wickersham
Widnall

Wigglesworth
Williams, Miss.
Williams, N. Y.
Wilson, Calif.

Wilson, Ind.
Winstead
Wolcott

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Rayburn
Reams

Reece, Tenn.

Dodd

Dollinger Dowdy

Cotton

Curtis, Nebr.

Davis, Tenn.

Klein

Scott

Landrum

Shafer

Lanham

Short

Dingell

Lantaff

Shufford

Lipscomb

Sullivan

Long

Sutton

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Thompson, La.

Chelf
Chenoweth
Chiperfield

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Ellsworth

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McGregor

Thompson, Tex.

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Robsion, Ky.

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Rodino

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Willis

Jenkins

Jensen

Rogers, Colo.

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Rogers, Mass.

Johnson, Wis.

Jonas, Ill.

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Wilson, Tex. Yorty

Rooney

St. George

Saylor

Schenck

So the motion to recommit was rejected.

The Clerk announced the following pairs:

On this vote:

Mr. Keogh for, with Mr. Taylor against. Mr. Klein for, with Mr. Ellsworth against. Mr. Metcalf for, with Mr. McGregor against. Mr. Moulder for, with Mr. Berry against. Mr. Roosevelt for, with Mr. Harvey against. Mr. Powell for, with Mr. Morano against. Mr. Dodd for, with Mr. Allen of Illinois against.

Mr. Feighan for, with Mr. Sadlak against. Mr. Heller for, with Mr. Wheeler against. Mr. Dingell for, with Mr. Lantaff against. Mrs. Sullivan for, with Mr. Harrison of Virginia against.

Mrs. Kee for, with Mr. Camp against.
Mr. Buckley for, with Mr. Landrum against.
Mr. Carnahan for, with Mr. Lucas against.
Mr. Perkins for, with Mr. Willis against.
Mr. Condon for, with Mr. Regan against.
Mr. Fallon for, with Mr. Chatham against.
Mr. Patten for, with Mr. Bonner against.
Mr. Yorty for, with Mr. Bow against.
Mr. Angell for, with Mr. Short against.

Until further notice:

Mr. Bonin with Mr. Lyle.

Mr. Kersten of Wisconsin with Mr. Long.
Mr. Weichel

Louisiana.

with Mr. Thompson

Chudoff
Church
Clardy
Clevenger
Cole, Mo.
Cole, N. Y.

Condon

Cooley

Jones, Ala. Judd

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Mr. Johnson of California with Mr. Shuford.

Mr. Hillings with Mr. Harris. Mr. Hinshaw with Mr. Preston.

Mr. Norblad with Mr. Lanham.

Mr. Curtis of Nebraska with Mr. Roberts.

Mr. Cotton with Mr. Frazier.

Mr. Patterson with Mr. Fisher.

Mr. Radwan with Mr. Wilson of Texas.

Mr. Wharton with Mr. Pilcher.

Mr. Shafer with Mr. Kilday.

Mr. Busbey with Mr. Albert.

Mr. Coon with Mr. Evins.

Mr. Harrison of Wyoming with Mr. Dowdy. Mr. Scott with Mr. Passman.

Mr. GUBSER and Mr. BROOKS of Texas changed their votes from "aye" to "nay."

The result of the vote was announced as above recorded.

The doors were opened.

The SPEAKER. The question is on

the passage of the bill.

Mr. McCORMACK. Mr. Speaker, on that I demand the yeas and nays. The yeas and nays were ordered. The question was taken; and there were-yeas 309, nays 36, answered "present" 2, not voting 87, as follows:

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Donovan
Dorn, N. Y.

Dorn, S. C.
Doyle

Eberharter
Edmondson

Elliott
Engle

Fenton

Fernandez

Fine

Fino

Fogarty
Ford

Fountain

Kearney

Kearns

Keating

Kelley, Pa.

Kilburn

King, Calif.
King, Pa.
Kirwan

Kluczynski
Knox
Krueger

Laird

Lane

Latham Lesinski

Lovre

McCarthy

McConnell

McCormack

McCulloch

McDonough

McIntire

McVey

Machrowicz
Mack, Ill.

Mack, Wash.
Madden

Magnuson

Mahon

Mailliard

Marshall

Martin, Iowa

Meader

Merrill

Frelinghuysen Merrow

Friedel
Fulton
Gamble
Garmatz

Gary
Gathings
Gavin
George

Goodwin

Gordon

Graham

Granahan
Green
Gregory
Gross
Gwinn
Hagen, Calif.
Hagen, Minn.
Hale
Haley

Miller, Calif.
Miller, Kans.
Miller, Md.
Miller, Nebr.
Miller, N. Y.

Mollohan

Morgan Morrison

Moss Multer Mumma

Murray

Natcher Neal Nelson

Nicholson Oakman

O'Brien, Ill.

O'Brien, Mich.

O'Brien, N. Y.

NAYS-36

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Scherer

Scrivner

Scudder

Secrest

Seely-Brown

Selden

Sheehan

Shelley
Sheppard
Sieminski
Sikes
Simpson, Ill.
Simpson, Pa.
Small
Smith, Miss.
Spence

Springer

Staggers

Stauffer Steed

Stringfellow

Talle
Thomas
Thompson,
Mich.

Thornberry
Tollefson
Trimble

Utt

Van Pelt

Van Zandt
Velde
Vinson
Vorys
Wainwright
Walter
Wampler
Warburton
Watts
Westland
Wharton
Wickersham
Widnall
Wier

Wigglesworth
Williams, N. J.
Williams, N. Y.
Wilson, Calif.
Wilson, Ind.

Withrow

Wolcott
Wolverton
Yates
Young

Younger Zablocki

Norrell

Rivers

Hoffman, Mich. Rogers, Fla.

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So the bill was passed.

The Clerk announced the following pairs:

On this vote:

Mr. Metcalf for, with Mr. Smith of Kansas against.

Until further notice:

Mr. Allen of Illinois with Mr. Lantaff.

Mr. McGregor with Mr. Keogh.

Mr. Morano with Mr. Chatham.

Mr. Taylor with Mr. Klein.
Mr. Bow with Mrs. Sullivan.
Mr. Coon with Mrs. Kee.

Mr. Curtis of Nebraska with Mr. Shuford.

Mr. Cotton with Mr. Preston.

Mr. Golden with Mr. Lanham.
Mr. Gubser with Mr. Landrum.

Mr. Busbey with Mr. Fisher.
Mr. Hillings with Mr. Lucas.
Mr. Scott with Mr. Long.

Mr. Johnson of California with Mr. Lyle.
Mr. Bonin with Mr. Carnahan.

Mr. Berry with Mr. Pilcher.

Mr. Ellsworth with Mr. Willis.

Mr. Harrison of Wyoming with Mr. Thompson of Louisiana.

Mr. Harvey with Mr. Roberts.
Mr. Sadlak with Mr. Fallon.
Mr. Patterson with Mr. Bonner.
Mr. Short with Mr. Perkins.
Mr. Shafer with Mr. Moulder.
Mr. Angell with Mr. Roosevelt.

Mr. Riehlman with Mr. Harrison of Virginia.

Mr. Vursell with Mr. Heller.

Mr. Hinshaw with Mr. Buckley.

Mr. Radwan with Mr. Kilday.

Mr. Norblad with Mr. Wilson of Texas.
Mr. Weichel with Mr. Wheeler.

Mr. Kersten of Wisconsin with Mr. Frazier.

Mr. SMITH of Kansas. Mr. Speaker, I voted "nay." I have a live pair with the gentleman from Montana, Mr. METCALF. I withdraw my vote "nay" and answer "present."

Mr. HOFFMAN of Michigan changes his vote from "yea" to "nay."

The result of the vote was announced as above recorded.

A motion to reconsider was laid on the table.

U. S. S. "CONSTITUTION" AND OTHER HISTORICAL VESSELS

Mr. DEVEREUX. Mr. Speaker, I ask unanimous consent to take from the Speaker's table the bill (H. R. 8247) to provide for the restoration and mainte

nance of the U. S. S. Constitution and to authorize the disposition of the U. S. S. Constellation, U. S. S. Hartford, U. S. S. Olympia, and U. S. S. Oregon, and for other purposes, with Senate amendments and concur in the Senate amendments.

The Clerk read the title of the bill. The Clerk read the Senate amendments as follows:

Page 3, line 4, strike out "subsection" and insert "subsections 2 (c) and."

Page 3, line 16, strike out all after "vessel" down to and including "received" in line 18. Page 5, line 4, strike out "in subsection 4 (a) and."

Page 5, lines 6 and 7, strike out "in his discretion, by sale or by scrapping."

Page 5, line 8, after "Secretary", insert "Any such vessel may be disposed of by sale or by scrapping, in the discretion of the Secretary."

Page 5, line 16, strike out "Constellation, Hartford, Olympia" and insert "Olympia."

The SPEAKER. Is there objection to the request of the gentleman from Maryland?

There was no objection.

The Senate amendments were concurred in, and a motion to reconsider was laid on the table.

AMENDING FOOD, DRUG, AND COSMETIC ACT WITH RESPECT TO RESIDUE OF PESTICIDE CHEMICALS

The Senate amendment was concurred in, and a motion to reconsider was laid on the table.

AMENDMENT TO MERCHANT MARINE ACT, 1936

Mr. TOLLEFSON. Mr. Speaker, I ask unanimous consent to take from the Speaker's table the bill (S. 2408) to amend the Merchant Marine Act, 1936, to provide a national defense reserve of tankers and to promote the construction of new tankers, and for other purposes, with House amendments, insist on the House amendments and agree to the conference asked by the Senate.

The Clerk read the title of the bill. The SPEAKER. Is there objection to the request of the gentleman from Washington? [After a pause] The Chair hears none, and appoints the following conferees: Messrs. TOLLEFSON, ALLEN of California, SEELY-BROWN, BONNER, and SHELLEY.

ABOLISHING OFFICES OF ASSISTANT TREASURER AND ASSISTANT REGISTER OF THE TREASURY

Mr. REED of New York. Mr. Speaker, I ask unanimous consent for the immediate consideration of the bill (S. 3605) to abolish the offices of Assistant Treasurer and Assistant Register of the

Mr. SPRINGER. Mr. Speaker, I ask Treasury and to provide for an Under

unanimous consent to take from the Speaker's table the bill (H. R. 7125) to amend the Federal Food, Drug, and Cosmetic Act with respect to residues of pesticide chemicals in or on raw agricultural commodities, with Senate a amendment thereto and concur in the Senate amendment.

The Clerk read the title of the bill. The Clerk read the Senate amendment, as follows:

Page 18, line 19, strike out "section." and insert "section."

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"(o) The Secretary of Health, Education, and Welfare shall by regulation require the payment of such fees as will in the aggregate, in the judgment of the Secretary, be sufficient over a reasonable term to provide, equip, and maintain an adequate service for the performance of the Secretary's functions

under this section. Under such regulations, the performance of the Secretary's services or other functions pursuant to this section, including any one or more of the following, may be conditioned upon the payment of such fees: (1) The acceptance of filing of a petition submitted under subsection (d); (2) the promulgation of a regulation establishing a tolerance, or an exemption from the necessity of a tolerance, under this section, or the amendment or repeal of such a regulation; (3) the referral of a petition or proposal under this section to an advisory committee; (4) the acceptance for filing of objections under subsection (d) (5); or (5) the certification and filing in court of a transcript of the proceedings and the record under subsection (i) (2). Such regulations may further provide for waiver or refund of fees in whole or in part when in the judgment of the Secretary such waiver or refund is equitable and not contrary to the purposes of this subsection.''

The SPEAKER. Is there objection to the request of the gentleman from Illinois?

There was no objection.

Secretary for Monetary Affairs and an additional Assistant Secretary in the Treasury Department.

The Clerk read the title of the bill. Mr. REED of New York. Mr. Speaker, I ask unanimous consent to extend an explanation at this point in the RECORD.

Mr. COOPER. Mr. Speaker, reserving the right to object, and I shall not, I simply state that this bill was favorably reported by unanimous vote of the Committee on Ways and Means.

The SPEAKER. Is there objection to the request of the gentleman from New York?

There was no objection.

Mr. REED of New York. Mr. Speaker, this legislation has been acted on faVorably by the Senate. It was reported to the House by the unanimous vote of the Ways and Means Committee.

Mr. Speaker, S. 3605 would abolish the office of Assistant Treasurer of the United States and the office of Assistant Register of the Treasury. It is pointed

out that neither of these offices has been filled under the Eisenhower administration.

Based on this experience it has been determined by the Treasury Department that they are unnecessary and the Secretary of the Treasury has requested that they be abolished.

The two primary responsibilities placed on the Secretary of the Treasury by the Congress are, first, the collection of revenue and the preparation of plans for the improvement and management of the revenue; and, second, the support of the public credit. It is desirable that the Secretary have under him two top officials of comparable rank on whom he can rely for assistance on these basic responsibilities. S. 3605 would authorize in the Department a new position of

Under Secretary for Monetary Affairs to whom supervision of functions relating to debt management and monetary policies could be assigned. S. 3605 would also establish a new position of Assistant Secretary in addition to the two positions of Assistant Secretary presently authorized. This position is necessary to provide the Secretary of the Treasury with an assistant of sufficient rank to enable him to carry out most effectively a number of related duties recently assigned to the Secretary of the Treasury. These duties include the lending functions under section 302 of the Defense Production Act of 1950, the lending functions under section 409 of the Federal Civil Defense Act of 1950, the liquidation of assets and winding up of the affairs of the Reconstruction Finance Corporation and other similar responsibilities recently assigned to the Secretary of the Treasury.

The Clerk read the bill, as follows:

Be it enacted, etc., That (a) section 303 of the Revised Statutes, as amended (39 U. S. C. 143), establishing the office of Assistant Treasurer of the United States, and the act approved April 9, 1926 (31 U. S. C. 143a), designating the Deputy Assistant Treasurer as Assistant Treasurer, are repealed.

(b) Section 304 of the Revised Statutes, as amended (31 U. S. C. 144), is amended (1) by striking out "Treasurer may, in his discretion, and with the consent of the Secretary of the Treasury, authorize the Assistant Treasurer to act in the place and dis

charge any or all of the duties of the Treas

urer of the United States; and the", and (2) by striking out "both the Treasurer and Assistant Treasurer" and inserting in lieu thereof "the Treasurer."

SEC. 2. Sections 314 and 315 of the Revised Statutes, as amended, and the joint resolution approved December 13, 1892 (31 U. S. C. 164, 165, and 166), establishing the office of Assistant Register of the Treasury, specifying the duties of the office, and providing for the appointment of an Acting Assistant Register, are repealed.

SEC. 3. The provision in the act of February 17, 1922, which established the office of Under Secretary of the Treasury, as amended and supplemented (5 U. S. C. 244), is amended to read as follows:

"There shall be in the Department of the Treasury an Under Secretary and an Under Secretary for Monetary Affairs, each to be appointed by the President, by and with the advice and consent of the Senate. The compensation of the Under Secretary and the Under Secretary for Monetary Affairs shall be at the rate of $17,500 each per annum. They shall perform such duties in the Office of the Secretary as may be prescribed by the Secretary of the Treasury."

SEC. 4. Section 234 of the Revised Statutes, as amended (5 U. S. C. 246), is further amended to read as follows:

“234. There shall be in the Department of the Treasury three Assistant Secretaries of the Treasury, who shall be appointed by the President, by and with the advice and consent of the Senate."

The SPEAKER. The Clerk will report the committee amendments. The Clerk read as follows: Committee amendments:

Page 1, line 4, strike out "39" and insert in lieu thereof "31."

Page 3, line 3, strike out "234" and insert in lieu thereof "SEC. 234."

The committee amendments were agreed to.

Mr. JENKINS. Mr. Speaker, I move to strike out the last word so that I might

ask the chairman of the Committee on Ways and Means a question. It is a fact, is it not, that the evidence before the Ways and Means Committee showed that these changes are absolutely necessary and desirable and that they will be an advantage to the Treasury itself and that it will also be to the advantage of the people who might have business with the Treasury or any of its many departments?

Mr. REED of New York, The gentleman is correct.

The bill was ordered to be read a third time, was read the third time, and passed, and a motion to reconsider was laid on the table.

ANNOUNCEMENT

Mr. RABAUT. Mr. Speaker, I was in my office this morning and I learn now that on rollcall 97, I am recorded as not being present. There are four people in my office besides myself and none of them heard the bells. I think we must have had a jammed electrical system. If I had been here I would have voted "yea."

COMMITTEE ON THE JUDICIARY

Mr. REED of Illinois. Mr. Speaker, I ask unanimous consent that the Committee on the Judiciary may have until midnight tonight to file reports.

The SPEAKER. Is there objection to the request of the gentleman from Illinois?

There was no objection.

VOCATIONAL REHABILITATION
AMENDMENTS OF 1954

Mr. McCONNELL. Mr. Speaker, I ask unanimous consent for the immediate consideration of the bill (S. 2759) to amend the Vocational Rehabilitation Act so as to promote and assist in the extension and improvement of vocational rehabilitation services, provide for a more effective use of available Federal funds, and otherwise improve the provisions of that act, and for other purposes.

The Clerk read the title of the bill. The SPEAKER. Is there objection to the request of the gentleman from Pennsylvania?

There being no objection, the Clerk read the bill, as follows:

Be it enacted, etc., That this act may be cited as the "Vocational Rehabilitation Amendments of 1954."

AMENDMENTS TO THE VOCATIONAL REHABILITATION ACT

SEC. 2. The Vocational Rehabilitation Act (29 U. S. C., ch. 4) is amended to read as follows:

"AUTHORIZATION OF APPROPRIATIONS FOR GRANTS;

PURPOSES FOR WHICH AVAILABLE

"SECTION 1. For the purpose of assisting the States in rehabilitating physically and mentally handicapped persons so that they may prepare for and engage in remunerative employment to the extent of their capabilities, thereby increasing not only their social and economic well-being but also the productive capacity of the Nation, there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1955, such sums for grants to carry out the purposes of this act as the Congress may determine. The

sums so appropriated for any fiscal year shall be available for

"(1) grants to States to assist them in meeting the costs of vocational rehabilitation services;

"(2) grants to States to assist them in initiating projects for the extension and improvement of their vocational rehabilitation services; and

"(3) grants to States and to public and other nonprofit organizations and agencies to assist in meeting the costs of projects which hold unique promise of making a substantial contribution to the solution of vocational rehabilitation problems common to a number of States and of projects or measures directed at meeting vocational rehabilitation problems of national significance or

concern.

The portion of such sums which shall be available for each of such three types of grants shall be specified in the act appropriating such sums.

"GRANTS TO STATES FOR VOCATIONAL REHABILITATION SERVICES

"SEC. 2. (a) (1) From the sums available for any fiscal year for grants to States to assist them in meeting the costs of vocational rehabilitation services, each State shall, subject to the provisions of paragraph (2), be entitled to an allotment equal to the total of the following: (A) an amount which bears the same ratio to the first $23 million of such sums, plus 80 percent of any excess of such sums over $23 million, as the product of (i) the population of the State, and (ii) the square of its allotment percentage (as defined in section 10 (h)) bears to the sum of the corresponding products for all the States, and (B) an amount which bears the same ratio to the remaining 20 percent of such excess as the population of such States bears to the population of all the States.

"(2) The allotment to any State, as computed under the provisions of paragraph (1) for any year ending prior to July 1, 1959, which is less than such State's base allotment shall, notwithstanding such provisions, be increased to the amount of such base allotment. If the allotment to any State, as computed under the provisions of paragraph (1) for any year ending prior to July 1, 1959, is in excess of such State's base allotment, and the allotment of any other State for such year is increased pursuant to the preceding sentence, such excess shall be reduced by a percentage which, if applied as a uniform percentage reduction to the excesses of all States having such excesses, would produce an amount equal to the total of the increases made pursuant to the preceding sentence for such year.

"(3) For purposes of this subsection, a State's base allotment is an amount equal to the amount allotted to such State for expenditures, under its State plan approved under this act, for the fiscal year ending June 30, 1954, increased by 5.53608 percent, except that if the sums available for any fiscal year for grants to States under this section are less than $23 million, each State's base allotment shall be an amount which bears the same ratio to the amount computed under the preceding provisions of this paragraph as such sums bear to $23 million.

"(4) In the case of any State for which there is a separate State agency administering or supervising the administration of the part of a State plan under which vocational rehabilitation services are provided for the blind, the State's allotment under this section shall be divided between such agency and the State agency administering (or supervising the administration of) the remainder of the State plan in the same proportion as the Secretary estimates, prior to the end of the year, State and other nonFederal funds will be available, during the fiscal year for which the allotment is made, for meeting the cost of vocational rehabili

tation services under the two portions of the State plan, except that (A) for any fiscal year ending prior to July 1, 1959, the portion of the allotment to any State, in which there were such separate agencies, equal to such State's base allotment shall be divided in the same proportion as the amount allotted to the State under this act for expenditures during the fiscal year ending June 30, 1954, was divided between such agencies, and (B) for any fiscal year ending after June 30, 1955, and prior to July 1, 1959, there shall be excluded in estimating the State and other non-Federal funds that will be available, during the fiscal year for which the allotment is made, for meeting the cost of vocational rehabilitation services under each portion of the State plan, the amount equal to the amount of State or other non-Federal funds which the Secretary estimates were available for expenditure under each portion of the State plan during the fiscal year ending June 30, 1954.

"(b) (1) From each State's allotment available for such purpose for any fiscal year ending after June 30, 1962, the Secretary shall pay to such State, an amount equal to the Federal share (determined as provided in section 10 (i)) of the cost of vocational rehabilitation services under the plan for such State approved under section 5, including expenditures for the administration of the State plan.

"(2) From each State's allotment available for such purpose for any fiscal year ending prior to July 1, 1962, the Secretary shall make payments to such State, with respect to the cost of vocational rehabilitation services under the plan of such State approved under section 5, including expenditures for the administration of the State plan, determined as follows:

"(A) A portion of such allotment equal to the State's base allotment shall be available for payment to such State of its adjusted Federal share of such cost of vocational rehabilitation services.

"(B) If the Secretary determines, prior to the end of such year, that costs of vocational rehabilitation services during such year, sufficient to entitle the State to full payment of the portion of its allotment specified in subparagraph (A), will be met out of pay

ments under such subparagraph and State and other non-Federal funds available for such purposes, the remainder of such State's allotment for such year shall be available for payment of the following percentages of any additional costs of vocational rehabilitation services during such year: 100 percent of any such additional costs in the case of the fiscal year ending June 30, 1955; 80 percent of any such additional costs in the case of the fiscal year ending June 30, 1956; 65 percent of any such additional costs in the case of the fiscal year ending June 30, 1957; 55 percent or the Federal share, whichever is higher, of any such additional costs in the case of the fiscal year ending June 30, 1958; and the Federal share of any such additional costs in the case of any fiscal year thereafter. "(3) For purposes of this subsection"(A) a State's base allotment shall be determined as provided in subsection (a); and

"(B) a State's adjusted Federal share for any fiscal year means—

"(i) in the case of any fiscal year ending prior to July 1, 1959, the 1954 Federal share for such State; and

"(ii) in the case of the fiscal year ending June 30, 1960, June 30, 1961, or June 30, 1962, the Federal share for such State for such year increased (if it is less than such State's 1954 Federal share) or decreased (if it is greater than such State's 1954 Federal share) by 75 percent, 50 percent, and 25 percent, respectively, of the difference between such Federal share for the year involved and the 1954 Federal share.

"(C) A State's 1954 Federal share means the percentage which (i) the base allotment

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