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refer to their first recommendation, which reads as follows:
"That decisions on trade policy be based on national interest rather than the interest of particular industries or groups; that in cases where choice must be made between injury to the national interest and hardship to an industry, the industry be helped to make adjustments by means other than excluding imports, such as through extension of unemployment insurance, assistance in retraining workers, diversification of production, and conversion to other lines.”
Another point which is often overlooked is the fact that we have already gone a long way toward reducing tariffs and other import restrictions into the United States. Our tariffs are not so high as many people suppose. It is estimated that 58 percent of all our imports came in duty free in 1952. Of the dutiable items, the average of all duties has been reduced 73 percent from 1935 levels. This reduction in duties has been brought about not only through the reciprocal trade agreements, but also by the fact that many commodities have specific duties expressed in dollars and cents per pound or other unit. Where such duties have not been changed as prices have gone up, the amount of the duties expressed as percentages of the current values of the commodities are much less now than they were 20 years ago. It very definitely remains to be seen how much further the people of the United States are prepared to go in reducing our tariff duties.
I should like now to discuss briefly the second question which I raised regarding how many dollars our friends abroad could earn if we took off our restrictions. We are greatly indebted to Dr. Howard S. Piquet, economist with the Legislative Reference Service of the Library of Congress. Dr. Piquet made a very careful analysis, commodity by commodity, to determine the degree to which imports would increase if all tariff duties and quotas were simultaneously suspended temporarily. His findings are published in his recent book, Aid, Trade, and the Tariff. Dr. Piquet's study indicates that if all United States tariffs had been suspended in 1951 imports into the United States would have been from $800 million to $1,800,000,000 more than they actually were. If quotas as well as tariffs had been suspended, the increase in our imports might have been from $1,200,000,000 to $2,600,000,000 more than they were in 1951. This larger figure would have been equal to 58 percent of the money spent on foreign aid in that year. This, however, makes no allowance that many commodities not now imported at all might enter a free United States market. The study suggests, therefore, that the United States probably could import enough goods and services to close the dollar gap if it announced a long-term policy of free trade.
It is possible, however, that adjustments would be made by doméstic industries to meet competition from abroad, and there is some doubt as to whether or not other countries could actually compete with the advanced production methods of the United States. The issue becomes not so much one of entirely eliminating the need for aid by means of tr de, but rather substituting part of the aid through more liberal trade policies than we have adopted heretofore.
In his address to the Seattle Chamber of Commerce on May 15, Mr. Walter Williams, Under Secretary of Commerce, discussed the subject in terms of More Trade, Less Aid. Mr. Williams emphasized that American industry generally does not need to fear competition from abroad. He stated that "the productivity of American labor in most of our industries is so much higher than the productivity of labor in rival industries abroad that the difference in wage levels is more than offset. In most of our industries
we need have no fear. The fact of the supe- entries on hand December 30, 1952. Cases rior productivity of American labor is the requiring 2 to 4 years for decision are comsafeguard against unemployment or reduced mon, and during all this period the importer standards of living." He goes on to say that is unable to determine what his liability will "while we do export raw products in substan- be on goods he is selling in the American tial quantities, the bigger part of our exports market. I think this situation is a reflection consists of fully manufactured commodities. of the attitude of the American people This has been the case for some time. Every toward international trade. Apparently year since before World War II over 50 per
most of us do not care whether or not the cent of our total exports has consisted of Customs Bureau acts in a businesslike manmanufactured commodities." He then makes ner. It certainly must be most exasperating this significant point:
to people across the seas when they are “These exported manufactures compete ad- faced with such an attitude. vantageously with the products of other Folks often say to me that it must be countries in every market in the world. Were exceedingly difficult to understand the oriit not for the fact that so many countries ental mind. During the past few years I now deliberately limit their imports from have had an opportunity to travel in the the United States as a means of conserving
Orient and I have had many interesting contheir dollars, American-manufactured goods versations with folks from that part of the would be exported even more extensively. world. One remark which I shall always reThis is not the kind of fact that supports
member is that of a Chinese who said: "You fears of foreign competition. This kind of Americans are hard to understand. You fact clearly indicates that the greater part talk as if you thought you were good busiof American industry has nothing to fear nessmen, but you never want to sell anyfrom the competition of foreign products."
thing; all you want to do is to give it away." While we are talking about tariffs, quotas,
Originally, people in other parts of the world and other restrictions upon imports to the
became acquainted with Americans when the United States, we should also keep in mind
Yankee traders of the eastern seaboard put that we are not alone in this respect. In a few articles in their sailing ships and went fact, some of the most restrictive policies out to other countries. These men traded against the free exchange of goods in inter- the things which they had on board for the national commerce exist outside of the things which other people had to exchange United States. Conversely, there is no other
and then they brought these articles back area in the world where such a volume of and sold them for a profit in the Colonies. free exchange of goods and services takes
The Yankee traders established a reputation place as within our own borders. If West- as good bargainers. Because they were good ern Europe had the same degree of free trade bargainers, other people respected and adas that between the various States on this
mired them, and thus other folks came to side of the Atlantic Ocean, the need for
have a high regard for the business ability of United States aid might very largely disap
Americans. pear. The preferential treatment within the I sometimes wonder if we may not have British Commonwealth of nations is another lost ground in recent years in the area of instance of restrictive policies which retard psychological attitudes. It is sometimes hard the free flow of goods and services in an for other people to understand why a great, important economic area. Under the Recip- rich, businesslike nation would give away so rocal Trade Agreements program we have
much, In many instances it has been very often obtained reduction in duty on the part
difficult and often impossible for the people of other countries, only to find import quotas
of other countries to understand why we and exchange restrictions preventing
do it. Not understanding our motives, they from selling certain commodities in any sub- become suspicious of us. Furthermore, in stantial quantity. So, while we are talking all too many cases, the people have not been about international trade as requiring a two- able to see how they themselves have reway street, we should keep in mind that ceived any benefit from the aid programs trade restrictions exist on both sides of the of the United States. So it seems approAtlantic and Pacific oceans. If our ultimate priate for us to reexamine our whole foreign aims of a prosperous free world are to be policy in the light of the effect that it accomplished, it is necessary that other has upon the attitude of other people toward countries adopt in practice as well as prin- the people of the United States. ciple the policies which they are urging upon
While in Washington recently I picked up the United States.
a pamphlet at the office of the United States Now let us look at this whole problem Chamber of Commerce. The title of this from another angle. We are concerned at pamphlet was "Whither Bound Japan?” As this Institute with the general theme of I read this thought-provoking document, I “Who holds the keys to peace and war?”
recalled the stimulating conversation a few Trade is important and dollars are important,
of us had in Tokyo in the fall of 1949 with but attitudes of mind are more important.
General MacArthur and members of the Any discussion of aid by trade within this SCAP organization. At the time of the general theme would be incomplete without
surrender in 1945, General MacArthur and consideration of the psychological factors
his army were confronted with some 80 milinvolved. One of the factors that occurs to lion conquered people who did not have me as having a very decided effect upon the enough to eat. Before the war they had attitude of other people toward the United imported rice from Korea and Formosa. States is the complexity of our customs regu
These sources of supply were no longer avail. lations. Both President Eisenhower and
able to them. After a few efforts to get President Truman have emphasized the ne
the folks back home to realize the situation, cessity for more businesslike customs pro
the general sent a message to the War Decedures in order to promote better relations partment saying, in effect, send me more between the United States and other coun
food or more troops. tries. In addition to customs regulations, The United States then embarked upon a we need to change the attitude, not only of program of supplying food for the Japaour public officials, but also the attitude of nese. Much of this food was in the form the people of the United States toward pur- of wheat from the Pacific Northwest. As a chasing goods from abroad. The report of result of the things that were done at the the Public Advisory Board for Mutual Se- time of the occupation, Japan has become curity which I referred to a little while ago one of the important customers of Oregon contains a statement that many goods take wheat producers. longer to pass through United States cus- The Japanese are an industrious, selftoms than it took Columbus to discover respecting people. They work hard and America. According to this report, the col- they produce all of the food their land will lectors' offices reported 723,000 unliquidated yield. They still lack 3 million metric tons
of rice and wheat which they must have to This is only one of many indications which in the law, his experience, and his ability. feed their growing population. They also have come to my attention in recent months He was the author of a major amendment need to import cotton, petroleum, and a lot that if the United States is not willing to
to the bill; namely, the provision requirof other commodities. As Japan looks to trade with the industrial nations of the free
ing concurrence of at least two members the future, these industrious, self-respecting world, there are other folks who would very
from each major party, before the grantpeople do not want us to support them.' much like to trade with them, and I do not They have manufactured goods to sell, and need to elaborate on what effect this would ing of immunity could be authorized. He they want to pay their own way. They have upon the security of the United States. spoke for the bill in committee, while are going to produce articles for sale some- Now, just a few words by way of summary he was a member of the committee, and where in the world. Wherever in the world and conclusion. The policy as stated by the on the floor of the Senate; when I took they sell their manufactured goods, that is Eisenhower administration points out the
the floor to urge that this bill be brought where they will be able to buy the rice need for removal of barriers to the free ex
up, he arose and supported my request. and the wheat and the cotton and the petro- change of goods and services—not only on
It would be unjust to allow this opporleum and coking coal and the iron ore and the part of the United States but on the the wool and the bauxite they must have. part of other countries as well. These bar
tunity to pass without paying tribute to With our present tariff policy and
general riers are not only in the form of tariffs but the splendid work done by the Senator attitude toward imports into the United also involve import quotas, exchange restric- from Michigan in behalf of this bill, in States, it is exceedingly difficult for the Japa- tions, and customs regulations. The dollar cooperation with the former chairman nese to earn dollars with which to buy the gap, which amounted to some $36 billion of the Judiciary Committee, while the wheat and other things which they need. during the 7 years 1946 through 1952, could
Senator from Michigan was a member of Temporarily they were able to get dollars probably not have been completely elimifrom the United States Treasury during the nated if the United States had adopted a
the committee, and his fine support of
the bill on the Senate floor. occupation and as a result of our expendi- policy of unlimited free trade, but such a tures in connection with the Korean war. policy on our part, along with a similar policy
I regret exceedingly that the Senator Obviously that is not a permanent solution on the part of other countries, might have from Michigan has found it necessary to to the problem.
been very helpful. We have gone a long way resign from membership on the Judiciary I have tried to visualize just what Japan toward removal of trade barriers during the Committee, and to become a member of might sell to the United States. She used past 18 years. Any further steps by us to another committee. It has been a depto sell us silk, and still might sell us some, reduce trade restrictions should be accom
rivation indeed to the Committee on but it is hard to imagine the women of panied by assistance to the industries and America switching from nylon stockings. laboring people who would be affected by
the Judiciary that the Senator from She might sell us some cameras, microscopes, such a policy. Reducing trade barriers on Michigan has not been able to remain on telescopes, and other precision optical in- our part should also be accompanied by com- it, because his fine training, experience, struments. She can produce excellent china- parable action on the part of other coun- and background have always been of ware and ceramics, and of course toys, fire- tries. The psychological factors involved in great benefit to the committee. works, and many novelty items. But it is this whole problem are, perhaps, more im- I hope the Senator from Michigan will entirely possible that in spite of their low
portant than the economic factors. In order wage rates, the Japanese could not sell
continue to maintain an interest, as by to regain the respect of other people, we enough in the dollar area to pay for all
action with respect to S. 16 indicates he need to reestablish ourselves as good traders. the things they need to buy. In the face We need to insist that we get value received
will, in legislation coming from the Comof this situation, what is going to be our attitude toward trading with Japan?
for what other folks buy from us. Somehow mittee on the Judiciary; and that we Are
or other the governments of the world need may always have his fine assistance in we going to discourage trade by irritating to permit the people of the world to trade the handling of such legislation on the customs regulations, import quotas, discrim
with another. If this can be done, then floor. inatory tariffs, and other devices? Or are
trade may well become the basis of mutual we going to express at least a willingness respect and confidence which alone can reto accept what she has to offer in payment sult in mutual security.
EMERGENCY ASSISTANCE TO FARMfor the food and industrial commodities
ERS which she needs to buy from us?
AND STOCKMEN-CONFERIf we, by our attitude toward imports,
ENCE REPORT prevent the Japanese from buying in the ASSISTANCE RENDERED BY SENA
Mr. AIKEN. Mr. President, I submit markets of the free world, where else can TOR FERGUSON IN CONNECTION
a report of the committee of conference they get the things they must have in order WITH BILL GRANTING IMMUNITY to exist? Where else but in Red China and
on the disagreeing votes of the two Russia? One of the challenging questions
IN CERTAIN CASES
Houses on the amendments of the Senwhich was raised by General MacArthur Mr. MCCARRAN. Mr. President, it has ate to the bill (H. R. 6054) to amend when we talked with him in 1949 was whether always been my intention to give credit the act of April 6, 1949, to provide for the people in the States realized the issues where credit is due. It occurs to me that additional emergency assistance to which are at stake; whether we realized full credit may not have been given to the farmers and stockmen, and for other what we must do if we are to play the role which history has assigned to us as the leadSenator from Michigan [Mr. FERGUSON] purposes.
purposes. I ask unanimous consent for ing creditor nation of the world.
in relation to a matter where credit is de- the immediate consideration of the What I have said about Japan applies to served.
report. even a greater degree to our relations with Some days ago the Senate passed a bill The PRESIDING OFFICER. The reEngland, France, Italy, and Western Ger- (S. 16) providing for the granting of im- port will be read for the information of many. Here is a paragraph from an editorial in the New York Times, Monday, June
munity from prosecution to witnesses be- the Senate. 8, 1953:
fore congressional committees under cer- (For text of conference report, see "Meanwhile, word from countries as di
tain conditions and subject to certain pp. 8656–8657 of House proceedings, verse as Japan and Argentina, France and
restrictions and safeguards, in order that CONGRESSIONAL RECORD of Friday, July Australia shows that the Communist world the Congress may be in a position to 10, 1953.) is feverishly speeding up its drive to in- require the testimony of a witness even The PRESIDING OFFICER. Is there crease trade between the Soviet and non- when he claims his privilege against self- objection to the present consideration Soviet worlds. Insofar as this trade is con- incrimination under the fifth amend of the report? fined to nonstrategic commodities, our Gov- ment. That bill has been under consider
Mr. MORSE. Mr. President, I should ernment's policy is not against it. But it is clear that the Communist traders' objective
ation by the Judiciary Committee for like to have the able chairman of the is seriously to weaken or to eliminate the
several years; I put the history of the Committee on Agriculture and Forestry existing curbs on sales of strategic goods to legislation in the RECORD the day it make a brief explanation of the conthem. To the extent that our country fol- passed. In all that time the committee ference report. lows a protectionist policy, we play into has had, and I have had as author of the
Mr. HENNINGS. Mr. President, I Moscow's hands on this issue. It is a trib- legislation, the assistance, guidance, and should like to inquire whether the disdate the Communist propaganda on this support of the Senator from Michigan tinguished chairman has discussed the issue has largely failed, but the strength sideration of that bill, during the time it leader, the senior Senator from Texas
[Mr. FERGUSON). Throughout the con- matter with the distinguished minority of this Communist drive will undoubtedly increase. It would seem wise for our own
has been before the Judiciary Commit- [Mr. JOHNSON). governmental policies to be planned with tee, the Senator from Michigan has given Mr. AIKEN. I have not. I cannot this factor in mind."
to the bill the benefit of his fine training conceive that either the acting majority leader or the minority leader would have Mr. AIKEN. The Senate conferees being the Wiggins airways renewal inthe slightest objection to the considera- agreed that the situation would be im- vestigation case. tion of the conference report.
proved, and the House conferees agreed There being no objection, the dissentMr. HENNINGS. Mr. President, I that by changing the language of the ing opinion was ordered to be printed in now understand there is no objection. House provision the bill itself would be the RECORD, as follows: Mr. AIKEN. The committee of con- improved, and there would be no chance
MEMBERS LEE AND ADAMS DISSENTING ference agreed substantially to the Sen- for misunderstanding or ambiguity. ate bill, with the exception of the section Mr. CARLSON. Mr. President, will renew Wiggins for the same basic reasons set
We dissent from the majority's refusal to relating to emergency feed and seed the Senator further yield?
forth in our original dissenting opinion in laws. This section was stricken by the Mr. AIKEN. I yield.
this proceeding. We are unable to adopt the Senate on the ground that it was cov- Mr. CARLSON. Do I correctly un- majority's conclusion that the area involved ered by other legislation. However, derstand, then, that upon the final en- in this proceeding is too weak to justify from after discussing the matter with the actment of the legislation emergency
an economic standpoint a properly estab
On House conferees, it was agreed that funds will be provided for financing lished local air transportation system. probably it would be better to have lan- loans in the disaster area for livestock; ment of a sound local service pattern providguage in the bill covering the item. So, second, that loans will be provided for ing these communities with rapid transporthe conference report contains a modi- feed; and, third, that emergency loans tation to their major trade centers would fied version of the provision for emer- will be provided for feed and seed? have just as good a chance for success as gency assistance in furnishing feed and Mr. AIKEN. It provides for loans for similar systems in other sections of the seed, which was originally stricken out agricultural purposes of any kind in dis- country. We are convinced that if Wiggins of the bill by the Senate. This pro- aster-areas. It provides for nationwide were given a proper route system and pervision does not create any new author- loans on livestock on a temporary, 2
mitted to operate this system with DC-3 or
an adequate feeder aircraft, Wiggins, just as ity. It is simply a question of whether year basis; and it provides for loans for
the other local service carriers have done, the funds for carrying out this authority feed and seed in disaster areas, to be
would be able to make a satisfactory showshall come from the President's emer- made from the revolving fund of the ing in the public interest. gency fund or from the disaster loan re- Department of Agriculture rather than We regard the majority's decision as parvolving fund. Many agencies, particu- from the President's disaster fund. ticularly unfortunate because it is made in larly the Civil Defense Administration, Mr. CARLSON. I wish to commend opposition to urgent requests on the part of are interested in the President's fund; the Senator and his committee for the representatives of cities and State civic inand the Budget Bureau has assured us diligence with which they have handled terests as well as outstanding representatives
of the political subdivisions of New England, that from an accounting and adminis- this critical and very much needed piece all of whom are particularly well versed in trative viewpoint, it is preferable that of legislation.
the needs and deficiencies of the air transthis assistance be furnished from the The PRESIDING OFFICER. The portation system of New England. We candisaster loan revolving fund. Language question is on agreeing to the confer- not agree with the majority that the natural which appeared to invite discrimination ence report.
interest which these public-spirited New in waiving payment for feed and seed
England citizens have expressed should be The report was agreed to.
ignored when even the majority cannot deny has been removed; and in view of the
that the route system which Wiggins was explanation of the Budget Bureau and removal of the objectionable language, AMENDMENT OF WHEAT MARKET- operating could have been substantially im
proved in this case so that the cities in the the conferees believe that the provision
ING QUOTA PROVISIONS OF AGRI- New England area could have had the beneshould be included in the bill.
CULTURAL ADJUSTMENT ACT OF fit of a true local service experiment.
JOSEPH P. ADAMS. derstand from the conference report The PRESIDING OFFICER laid bethat funds for feed and seed loans fore the Senate a message from the would come from the disaster relief House of Representatives disagreeing to CIVIL AREONAUTICS BOARD PROfund? the amendments of the Senate to the bill
CEEDINGS AGAINST NORTH AMERMr. AIKEN. Not now. They would (H. R. 5451) to amend the wheat-marhave come from the disaster relief fund keting-quota provisions of the Agricul
ICAN AIRLINES had the provision which was stricken tural Adjustment Act of 1938,
Mr. HENNINGS. Mr. President, on by the Senate remained out of the bill. amended, and for other purposes, and Saturday, the distinguished junior SenThe fund will now come from the re- requesting a conference with the Senate ator from Alabama [Mr. SPARKMAN] volving fund of the RACC, or what
on the disagreeing votes of the two spoke to the Senate briefly concerning formerly was the RACC agency. It was Houses thereon.
the pending enforcement proceedings feared that the President's emergency Mr. AIKEN. I move that the Senate which have been brought by the Civil funds might become exhausted in case insist upon its amendments, agree to the Aeronautics Board against North Amerof serious disasters of another nature. request of the House for a conference, ican Airlines. Because of the lateness Therefore the Bureau of the Budget and that the Chair appoint the con- of the day, the Senator from Alabama thought it would be better to have the ferees on the part of the Senate.
spoke only briefly, and obtained permisagricultural disaster loans for feed and
The motion was agreed to; and the sion to insert in the CONGRESSIONAL RECseed paid out of the revolving fund ra- Presiding Officer appointed Mr. AIKEN, ORD the remainder of his speech and a ther than to take a chance on calling Mr. YOUNG, Mr. THYE, Mr. ELLENDER, and memorandum. I had also intended to on another fund which might at some
Mr. HOLLAND conferees on the part of the speak on Saturday concerning the same time prove to be inadequate. Senate,
problem, but because other Senators Mr. CARLSON. Do I correctly un
were obviously anxious to adjourn the derstand that the feed and seed loans LOCAL AIRLINE SERVICE IN NEW Senate, I deferred saying anything until at the present time, and under the present program, will be handled as they ENGLAND-DISSENTING OPINION today.
Over the past week I received numerhave been handled in the past, through
OF JOSH LEE AND JOSEPH P.
ous telegrams from people in Missouri the same funds which were available in
protesting against enforcement proceedprevious years for feed and seed loans? Mr. KENNEDY. Mr. President, on
on ings against North American Airlines Mr. AIKEN. After this bill becomes behalf of the senior Senator from Mas- and urging that I speak against this law, the feed and seed loans will be sachusetts [Mr. SALTONSTALL] and my- action. made out of the revolving fund, rather self, I ask unanimous consent to insert This is a matter on which up to this than the President's immediate disaster in the RECORD the dissenting opinion of time I have not had an opportunity to fund.
the Honorable Josh Lee and the Honor- familiarize myself in detail, and for this Mr. CARLSON. I appreciate very able Joseph P. Adams, both members of reason I was very much interested in the much the statement of the distinguished the Civil Aeronautics Board, in docket remarks of my good friend, the Senator Senator from Vermont.
No. 5055 et al., decided July 3, 1953, from Alabama [Mr. SPARKMAN). XCIX -540
LIBRARY ANDERSON, INDIANA
For several years, as one of the air As I understand, the Civil Aeronautics Feel there is no justification for putting traveling public, I have been aware of the Board is determined to go forward with
this line out of business, except fear of its growth of the so-called nonscheduled air these enforcement proceedings, which fine, safe, low-cost service. Hope you will
help. lines and of their great contribution to would put this large independent car
JIMMY JOHNSTON, Sr., American aviation. I also have been rier out of business, in spite of protests
EDDIE JONES. aware of the fact that from the inception from congressional committees and
LOTHAR KNUATH, Sr., of regulation by the Civil Aeronautics Members of Congress. It seems to me
LOTHAR KNAUTH. Board, the air transport industry has had that in view of the findings and recoma shrinkage in the number of scheduled mendations of the Senate Small Business
NORTH KANSAS CITY, MO., July 9, 1953. air lines from 16 to 13, rather than a Committee and the importance of this Senator TOM HENNINGS, Jr., growth.
carrier to the air transportation indus- Senate Office Building: We in the United States have long try, the decision of the Civil Aeronautics We have worked for North American Air since come to feel that we do not fear Board to proceed at this time with the Lines more than 3 years. But this is more or oppose bigness, as such, in industry enforcement action can be questioned. than a job. It is a cause with a principle or anything else. On the other hand, While my immediate interest in this involved and your voice should be heard on
this vital issue. we have for many years been opposed to matter has been occasioned by the ap
Capt. R. B. HAL, monopoly in any form. We have laws peals from my fellow citizens in Missouri,
Capt. D. BUNCH. which prohibit the growth and develop- I have for a long time viewed the eco
Capt. E. TAVEGA, ment of monopolies, but these conspira- nomics of the air transportation industry cies in restraint of trade nonethelesswith increasing concern.
KANSAS CITY, Mo., July 9, 1953. as we well know—and as last year I It has been charged repeatedly that
Senator THOMAS HENNINGS, Jr., showed in connection with the interna- this industry is threatened with monop- Senate Office Building, tional oil cartel-continue to develop. I oly. While I have not had an oppor
Washington, D. C.: hope a monopoly is not threatened in the tunity to fully acquaint myself with the It was fine for you to fight the book burnair transport industry, but I must say, facts concerning the charges of an airing. How about stopping the underhanded on the basis of considerable evidence re- cartel, I am aware, as are other Mem- destruction of free enterprise in aviation? ferred to by the Senator from Alabama bers of Congress, that these charges are
North American Air Coach is being executed and on the basis of the questions which being made from sources which appear
because it is a menace to monopoly. Appre
ciate knowing what you will do to alert counhe raised in his speech on Saturday, I substantial and reliable.
try to stop this. am compelled to express great concern In view of this situation, I think the
Capt. D. J. KEELER, over the administration of the Civil Congress should investigate quite thor
Capt. J. P. NEWKIRK, Aeronautics Act by the Civil Aeronautics oughly the administration by the Civil
Capt. JOSEPH DILLARD, Board. Aeronautics Board of the air-transport
North American Airlines. The Senator from Alabama stated on industry, and either should lay to rest Saturday that the North American Air- the charges which have been made, or
KANSAS CITY, Mo., July 6, 1953. lines is the largest, most reliable, and should take some action to correct the Senator THOMAS C. HENNINGS, Jr., most experienced carrier among the in- alleged trend toward monopoly, if the Senate Office Building, dependent nonscheduled air carriers. air carriers. charges are substantiated.
Washington, D. C.: He noted that they receive no subsidy In any case, I wish to indicate now Urgently request you advise what specific from the Treasury, and have never re- that I am very much concerned with steps you will take to prevent CAB from its ceived a subsidy; that they have a fine this problem and intend to go into the
harassment and destruction of North Amerrecord of safety. The charge against matter thoroughly. At a later date, and last year carried 8,700 people in and out
ican Airlines, which employs over 400 people them seems to be that they are guilty, after I have had more time to study this
of Kansas City. Currently CAB using flimsy in the eyes of the Civil Aeronautics matter, I shall speak on the problem at technical grounds to bring lengthy and exBoard, of flying too frequently, too regu- much greater length.
pensive proceedings with view to killing larly, and in some instances, of conduct- Mr. President, I ask unanimous con- North American. Understand Senator THYE ing their business in a manner similar sent to insert in the CONGRESSIONAL REC- and Senate Small Business Committee have to that of the certificated carriers in re- ORD following my remarks, a number of
intervened, as has Senator TOBEY, but Board gard to honoring passenger tickets telegrams which I received in protest disregards all merits involved and is bent among each other. The Senator from against the Civil Aeronautics Board's designed to destroy all independent enter
upon strangulation by regulation, which is Alabama stated that the regulations pending enforcement proceeding.
prise and aviation. Despite court intervenwhich this carrier is charged with violat- There being no objection, the tele- tion, CAB is launching its extermination ing had been repeatedly challenged in grams were ordered to be printed in the proceedings July 6. recent hearings conducted by the Senate RECORD, as follows:
Feel your voice should be raised on Senate Small Business Committee, in the course
KANSAS CITY, MO., July 9, 1953.
floor to prevent economic murder. This is of which the Senator said it was shock- Senator TOM HENNINGS, Jr.,
not only vital to the traveling public of ingly revealed that these regulations
Senate Office Building,
Missouri but to the breadwinning veterans had a premeditated motive designed to
who built this industry. Upon your effecdeprive one segment of the aviation in
As a war veteran I thought I was fighting
tiveness depends question whether air over dustry—the nonscheduled independent home and watched the CAB killing off civil. for democracy but ever since I have come
America belongs to féw subsidized monopoly
airlines or the American public. carrier-of economic survival. ian enterprise in aviation I ask myself if I
Please advise action which you will underThese are serious charges, and many
take. was fighting for bureaucracy at home.
i other serious questions were raised on
DALE BOWERS, Saturday about this pending enforce
Regional Manager, North American
Airlines. ment proceeding. One must remember
KANSAS CITY, KANS., July 9, 1953. that this nonscheduled carrier was or
Senator TOM HENNINGS, Jr., ganized by veterans of World War II, Senate Office Building,
KANSAS CITY, Mo., July 9, 1953. Washington, D.C.:
Senator THOMAS HENNINGS, Jr., with the help of and on the urging of Recently had to see my son, a Korean vet
Senate Office Building, the Federal Government, and without eran, in the naval hospital in San Diego and
Washington, D. C.: airmail subsidy. This group of com
thanks to North American Airlines was able Feel North American Airlines survival abpanies have demonstrated that without to afford the trip which major airlines made solutely necessary as a last stand to save
free enterprise in aviation. It is the largthe airmail subsidy, which the regularly prohibitive. You should fight for any group which keeps prices down.
est nonsked with perfect safety record; proscheduled airlines get, they were able to
VINCENT ABELL. vides air transportation to millions in low operate safely a fine air transport service
income bracket. As originator of air-coachto the public, at greatly reduced cost.
KANSAS CITY, Mo., July 9, 1953. type service, creating new flying market, This is a type of free enterprise about Senator TOM HENNINGS, Jr.,
which will be left without air transportawhich America can be proud, and one
Senate Office Building,
tion or forced to pay double on luxury line
Washington, D. C.: which it appears to me we wish to en
of monopoly system. Livelihood of myself and family depend on
V. GORDON, courage, not destroy. North American Airlines in Kansas City.
REAPPRAISAL OF FEDERAL-AID no longer be performed in behalf of the The motion was agreed to; and the AIRPORT PROGRAM
Federal Government, it is both the right Senate proceeded to the consideration of Mr. MCCARRAN. Mr. President, I make recommendations to the Congress.
and the duty of that department to executive business. ask unanimous consent that I may ad
But it is neither the right nor the duty dress the Senator for approximately 5
of the department to set itself up as or 6 minutes.
EXECUTIVE MESSAGES REFERRED The PRESIDING OFFICER. Is there Congress has laid down. Furthermore, I making policy, or as changing the policy
The PRESIDING OFFICER (Mr. CASE objection to the request of the Senator greatly deplore the tendency, which I
in the chair) laid before the Senate mesfrom Nevada that he may proceed at this have noted in especial force this year,
sages from the President of the United time for 5 or 6 minutes, notwithstandand particularly in the Commerce De
States submitting sundry nominations, ing the 2-minute rule during the mornpartment, and more particularly with
which were referred to the appropriate ing hour?
committees. regard to the Federal airport programThe Chair hears no objection, and the
(For nominations this day received, the tendency to seek approval of adSenator from Nevada may proceed. ministrative changes, even though in
see the end of Senate proceedings.) Mr. McCARRAN. Mr. President, it has come to my attention that announce
volving basic shifts of policy, by the ment has been made that a group of 12
Appropriations Committee, rather than
EXECUTIVE REPORTS OF A Members, named by the Commerce Demally handle the Department's prob
COMMITTEE partment, for the announced purpose of
lems. reappraising the Federal-aid airport
As in executive session, program, expects to have final recom
Mr. President, I am a member of the The following favorable reports of mendations ready in September. It is
Committee on Appropriations, and I nominations were submitted:
would do nothing to demean that comreported these recommendations will be
By Mr. LANGER, from the Committee on transmitted to the Transportation Coun
mittee nor to take from it any of its the Judiciary: cil of the Department of Commerce. proper jurisdiction or responsibilities.
Joseph P. Willson, of Pennsylvania, to be I simply do not believe it is the proper United States district judge for the western According to the reports which have reached me, subcommittees of this 12jurisdiction of the Committee on Appro- district of Pennsylvania, vice Owen M. Burns,
deceased; priations, nor a proper responsibility of man group already have prepared indithe Committee on Appropriations, to
George H. Boldt, of Washington, to be vidual reports on such matters as the
United States district judge for the western current status of the Federal-aid airport authorize basic changes in the organic
district of Washington, vice Charles H. Leavy, program, the history of Federal aid, and law of any of the departments. If a
retired; function is to be ended, it should be so forth.
William Cozart Calhoun, of Georgia, to be It is said, Mr. President, that the obended through legislation reported in an
United States attorney for the southern dis
trict of Georgia; jective of this 12-man group, appointed orderly manner by the proper legislative
committee. If a function is to be by the Secretary of Commerce, is to
Edwin R. Denney, of Kentucky, to be
United States attorney for the eastern disdetermine what should be the future changed, the same is true. The tend
ency to seek the lopping off of functions trict of Kentucky, vice Claude P. Stephens, responsibility of the Federal Govern
term expired; ment with respect to development of a by mere failure to appropriate, and the
John W. McIlvaine, of Pennsylvania, to be national program of civil airports. change of functions by riders or limiting
United States attorney for the western disMr. President, I wish to say once more language in appropriations bills, is a
trict of Pennsylvania, vice Edward C. Boyle, what I have said on previous occasions, tendency which is leading us in the
resigning; namely, that the determination of policy wrong direction, and which can only
John C. Crawford, Jr., of Tennessee, to be with respect to the future responsibility end, eventually, in both confusion, with
United States attorney for the eastern dis
trict of Tennessee; of the Federal Government in connec- respect to the administration of the laws, tion with maintenance and development and confusion and dissension with re- Hugh K. Martin, of Ohio, to be United
States attorney for the southern district of of an integrated system of civil airports, spect to the prerogatives and responsiis something to be determined by the bilities of the varying committees of the Ohio;
Millsaps Fitzhugh, of Tennessee, to be Congress, not by the Department of Congress.
United States attorney for the western disCommerce.
I do not believe the Appropriations
trict of Tennessee, vice John Brown, term There is nothing wrong, of course, in Committee desires to make any attempt expired; a study by the Department of Commerce to take over the legislative responsibili
William M. Steger, of Texas, to be United or by the Civil Aeronautics Administra- ties of the various standing committees States attorney for the eastern district of tion of the responsibilities imposed upon
of the Senate; and I think any depart- Texas; that Department and upon that Admin- ment or agency in the executive branch John Strickler, of Virginia, to be United istration under the Civil Aeronautics Act, which seeks to put the Appropriations States attorney for the western district of as amended. Nor is there any reason Committee in the position of doing Virginia, vice Howard C. Gilmer, Jr., term
expired; why the Department or the CAA should So, should be brought up sharply and
James L. May, of Alabama, to be United not make recommendations to Congress turned back into the proper channels.
States marshal for the southern district of for changes in the basic legislation, if
I do not mean by anything I have said, Alabama, vice Vernon P. Burns, term exthey deem such a recommendation jus- Mr. President, to imply that I have read pired; tified.
the mind of the Secretary of Commerce, Frank 0. Bell, of California, to be United I hope, however, that the Department and that I know what he proposes to do States marshal for the northern district of of Commerce, if it has any recommen- with the eventual report of the group
California, vice John A. Roseen, resigning; dations to make with respect to modifi- which he appointed to reappraise the Thomas J. Lunney, of New York, to be
United States marshal for the southern discation of the program which Congress Federal-aid Airport program. I have
trict of New York; has laid down in this regard, will make simply been putting in the RECORD some
Roy A. Harmon, of North Carolina, to be them to the proper legislative commit- views which I hold rather strongly, and
United States marshal for the western distees of the Congress, and will not at- which I felt might be of interest not
trict of North Carolina, vice Jacob C. Bowtempt either to put such recommenda, merely to the Secretary of Commerce, but man, term expired; tions into effect by administrative fiat, also to my colleagues and especially my Harold Sexton, of Oregon, to be United or to accomplish them by administra- colleagues on the Committee on Appro
States marshal for the district of Oregon; tive cutting of the budget, or even to
Howard S, Proctor, of Rhode Island, to priations. bring them about by provisions written
be United States marshal for the district of
Rhode Island; into or left out of appropriations bills.
Richard A. Simpson, of Virginia, to be It is my contention, Mr. President,
United States marshal for the eastern disthat if a Government agency thinks Mr. FERGUSON. I move that the
trict of Virginia; and its functions should be cut, thinks duties Senate proceed to the consideration of
Nogi A. Asp, of Washington, as examiner imposed upon it by the Congress should executive business.
in chief of the Patent Office.