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Mr. SALTONSTALL. Let me answer fectly clear, so that no one will mis- cited throughout the Nation, where, in the statement of the Senator from interpret my views.
order to give relief to a so-called disGeorgia.
I fully agree with the distinguished tress area, a contract is taken from the As I tried to say, the regulations are Senator from Georgia. I believe that place where it rightfully has gone under based upon laws of the United States, the committee amendment now in the our bidding system, and given to another. enacted by Congress.
bill should be sustained, and I think the It throws many people out of work and Mr. GEORGE. Mr. President, I lis- motion of the Senator from Massachu destroys small business. tened to the Senator very patiently setts to strike the language from the bill If that makes sense, and if it is in Mr. SALTONSTALL. May I finish? should be defeated.
keeping with our Republican doctrine of Mr. GEORGE The Senator said the The reason I entertain that view is free enterprise, I will eat my hat. contract should go to a textile mill which that I consider such action to be con Mr. MAYBANK, Mr. President, will worked only two shifts. That is because trary to the doctrines in which at least the Senator yield? me does not want a three-shift op- those of us on this side of the aisle Mr. KNOWLAND. I yield.
That is all there is to it. Un have always believed. We have always Mr. MAYBANK. I merely wish to rethe guise of a defense program we are believed in the free-enterprise system. peat what General Hollis said. undertaking to rewrite the labor laws What it is proposed to do is to say Mr. GREEN. Mr. President, who has and undertaking also to grant relief. We to the businessman, “Go out and sharpen the floor? ? are doing it through a species of personal your pencil and give to the Government Mr. MAYBANK. The Senator from government, the most obnoxious form of in good faith the best bid you can on a California has yielded to me. government under which Americans Government contract." When, under The PRESIDING OFFICER (Mr. have ever lived.
the competitive system, he has sharpened PAYNE in the chair). Did the Senator I am not a new convert to this doc- his pencil, and finally put in a bid at
his pencil, and finally put in a bid at from Massachusetts yield the floor? The trine. I have believed in it all my life, a price which he believes will return to Chair inquires whether the Senator from I am perfectly willing, if there are dis- him a decent and fair profit under our Massachusetts yielded the floor. He had tressed areas, to accord them relief. I competitive economic system, we then
the floor, and he yielded to the Senator am perfectly willing, if there is to be a say to someone else in another area from California. revamping of the labor laws, to consider of the country, "Come in and take a peek
Mr. SALTONSTALL. I thank the any reasonable proposal which may be at this bid, and if you can match it we
Chair. I had completed my remarks and brought forth. But let us not bring it will give you the contract.”
was ready to yield the floor, unless Senaforth in a defense appropriation bill.
This sort of procedure would bring tors desired to ask questions of me. I Mr. SALTONSTALL. I have not have not about a completely regimented economy.
was prepared to answer questions, when brought it forth in a defense appropria. We would be giving power into the hands
the Senator from California asked me to tion bill. It has been the law, and has of the Federal Government such as I bebeen working for the past 2 or 3 years. lieve no government should have, be it question of me. He has made his reIt is based upon an act of 1947.
Democratic or Republican. This repre- marks, instead. I have no further reMr. GEORGE. That was a produc- sents a vast grant of power which ulti- marks to make. tion act, and it related primarily to prob- mately could lead to a completely con The PRESIDING OFFICER. The lems which were pertinent, and should trolled economy if the power were abused. Senator from California was recognized. have been considered in connection with I do not believe the power would be
Mr. MAYBANK. Mr. President, will that act. Now we are considering a de- abused under this administration, but I the Senator yield? fense appropriation bill appropriating would oppose such a proposal just as Mr. KNOWLAND. I yield. some $40 billion. What we are doing is vigorously if the party across the aisle
Mr. MAYBANK. I merely wish to say undertaking to write the law with re were to sponsor it.
that the Senator from California is spect to labor and with respect to relief The committee amendment went into eminently correct. The Army, Navy, according to someone's concept of it. the bill in the Appropriations Commit- and the Air Force appropriations bill is
Mr. KNOWLAND. Mr. President, will tee. It is true that it was agreed to by a not a relief bill. The proposal is to give the Senator yield? divided vote
contracts to distressed areas and give Mr. SALTONSTALL. I reply to the Mr. MAYBANK, Mr. President, will work to people. I want to tell the Senator from Georgia by saying that a the Senator yield?
Senator from California, who, with his great many of our laws are interpreted Mr. KNOWLAND. Let me finish. many duties as majority leader, perby means of regulations. Otherwise I say that this is a very dangerous haps is not familiar with it, what Genthey could not be enforced. There is no power to give any administration. I be- eral Hollis said. I asked the General the personal law involved here. If a mill is lieve that it actually violates our whole question, and he said that it costs $557 already working less than 80 hours, or theory of contracting. It is said that for the Army to enter upon negotiations two 40-hour shifts, the purpose of the this procedure would not cost the Fed- for a contract. That is on each contextiles regulation is to give some em eral Government anything. On the con- tract. In addition to that, they have ployment in such areas, whether they be trary, I believe that if the committee to keep the books on the contracts afterin Georgia or Massachusetts. This is amendment were stricken out it would ward. not done on a regional basis. It is based cost the Federal Government literally I can understand the situation of some upon the situation which exists, wher tens and hundreds of millions of dollars, of the towns in Massachusetts, where ever it may occur.
for the very simple reason that we would there is unemployment. But I am opMr. GEORGE. If I may be permitted discourage people from bidding if they posed to such a, procedure on constituto say so, it is based upon a political know that if they put in an honest bid tional and other grounds. consideration and does not operate on the business could be taken away from Distressed areas will be able to take a regional basis. It is purely political them and placed somewhere else. When business from other areas. Such situain its concept.
that is done we discourage the competi- tions exist in California and in New I deplore an effort of this kind to bring tive system and we discourage the fair Mexico. A little while ago I saw on the into a defense appropriation bill ap- bidding practice under
bidding practice under our system of floor the Senator from New Mexico (Mr. propriating forty-billion-odd-dollars be- private enterprise. I do not believe the CHAVEZ]. He knows very well that such longing to American taxpayers principles executive branch of the Government, un situations exist in his State, where hunof this kind.
der an Executive order, should be per dreds of people are out of work, as at Mr. KNOWLAND. Mr. President, will mitted to move the economy of the coun Las Vegas, N. Mex., which has only the Senator yield?
try from one place to another, and back one industry. Mr. SALTONSTALL. I yield. again.
Mr. KNOWLAND. The Senator from Mr. KNOWLAND. As I pointed out As the distinguished Senator from Ari South Carolina is correct. Not only before, I am speaking merely in my zona [Mr. GOLDWATER] has pointed out, does it cost the Government money individual capacity as a Senator. I am we had a very clear example of it in the when it goes through contract negotiasure that Senators will recognize that case he mentioned, which was that of a tions, but we must not lose sight of the I am not speaking from a party stand- parachute manufacturing company. I I fact that it costs the businessman money point. I wish to make that fact per- believe hundreds of such cases could be to sharpen his pencil and put in his bid,
believing that he will get an honest and . 112,000 parachutes. The only reason the distinguished senior Senator from fair shake in getting his bid accepted, why more than $50 million has not been South Carolina [Mr. MAYBANK); and it provided he is the low bidder.
involved so far is because the smart boys was agreed to in the committee by a diMr. MAYBANK. But the low bids are have not found out about it. The com vided vote. For that reason, objection to not accepted.
pany that got the contract was among the amendment has now been made. As Mr. KNOWLAND. That is correct. the first of the smart boys to get into it. a result, various Senators have risen to If the businessman knows that time Mr. President, the smart boys sit in New
Mr. President, the smart boys sit in New support the amendment. after time, and time after time, when York City and decide where the critical I wish to put myself on record as he sharpens his pencil and makes a bid, areas are, and undercut the successful firmly subscribing to the principles and the contract is taken away from him, low bidder.
objectives which underlie Defense Manwe will not be able to get him to make Mr. KENNEDY. Did the Senator say power Policy No. 4, as issued by the Ofa bid. He will be reminded of his ex undercut?
fice of Defense Mobilization. As I have periences in filling out OPA forms or Mr. GOLDWATER. They take the previously stated, this bill is not the income-tax forms, or numerous other business away from the low bidder. place to change that order. The purredtape documents with which a busi Mr. KENNEDY. But they have to poses of Defense Manpower Policy No. nessman is required to contend and meet the bid of the gentleman who would 4 are wholly consistent with the fundawhich necessitate putting additional em secure the business. It does not cost the mental aims of our mobilization proployees on his payroll. Federal Government any more.
gram. This policy provides that govIf we make him fill out forms and then, Mr. JOHNSTON of South Carolina. .ernment procurement through negotiaton top of it all, after he makes bid in Mr. President, I want to correct a state ed contracts and purchases with resgood faith when he has reason to be ment. I want to read what the order ponsible firms shall be directed to areas lieve that he is the low bidder and he provides.
of current or imminent labor surplus will get the business, we snatch the busi The PRESIDING OFFICER. The when the public interest so dictates. It ness away from him, we are not going Senator from California was recognized, seeks to maintain productive facilities to get an honest competitive business in and has the floor. He had yielded to and to assure timely delivery of required our country, but we will finally build up the Senator from Arizona [Mr. GOLD- goods and services by locating procurein Washington a tremendous power WATER), and then he was asked whether ment where needed manpower and fawhich can drag the business life of the ho would yield to the Senator from Mas
cilities are fully available. It is designed Nation from one place to another, as sachusetts [Mr. KENNEDY] for a ques to preserve employee skills necessary to
tion. that power may determine.
the fulfillment of government contracts Mr. MAYBANK. Mr. President, will
Mr. TOBEY. Mr. President, will the and purchases, and to provide for an the Senator yield?
Senator from California yield for 5 sec orderly conversion from civilian to miliMr. KNOWLAND. I do not believe onds?
tary production, while minimizing the that even the last administration would Mr. KNOWLAND. I yield.
strains and dislocations attributable to do it. I am sure it would have recog
Mr. TOBEY. Mr. President, when the such conversion. nized its responsibility. However, I say distinguished Senator from California I know, Mr. President, you will agree to you, Mr. President, as the distin spoke a few minutes ago, he said he was with me that we must take all reasonguished senior Senator from Georgia has speaking merely as a United States Sen- able steps necessary for the defense of stated, I believe it is too much power ator. I take exception to the word our Nation. Basic to our national seto place in the hands of the President. “merely.”
"merely.” It is a minimizing word. I curity is the efficient use of all of our Mr. KENNEDY. Mr. President, will do not like that word. Let me say to resources our production plants and the Senator yield?
the leader that when he speaks, he equipment and our manpower. I wish Mr. KNOWLAND. I yield.
speaks with logic, understanding, and to stress, Mr. President, that all of the Mr. KENNEDY. The Senator from deep conviction. That is a true Bill procurement directed to labor surplus California stated that hundreds of mil- Knowland speech. He should hold his areas under Defense Manpower Policy lions of dollars might be involved in the head up and throw out his chest and say, No. 4 has been at prices no higher than
“I am speaking as a United States Sen- for similar goods purchased in other program. The program has been in ef
areas. This policy merely provides that fect for 2 years and only about $50 mil- ator.”. He should not say that he is
financially responsible and technically lion has been involved. In fact, slightly speaking
merely as a Senator.
Mr. GREEN. Mr. President, I do not competent firms, located in labor-surless than that has been let under the
believe I ever stood on the floor so long plus areas, shall be permitted to have an Defense Manpower Policy No. 4, according to the statement of Mr. Flemming.
before I was recognized and had an op- opportunity to meet the low bid and portunity of saying something.
thus be eligible for contract awards. Under the program the Government places a contract at the lowest bid in
In view of the remarks which I have The Comptroller General has ruled that an area which is cited by the Govern- in mind to make I desire to associate this policy in no way violates the langment to be a distress-labor area.
myself, if I may, with the motion which uage and the intent of the Armed SeryHow can it cost the Government Senator from Massachusetts (Mr. SAL- it provides some assistance to local areas
my distinguished colleague, the senior ices Procurement Act. At the same time hundreds of millions of dollars?
TONSTALL) had made, to strike from the confronted with serious problems of idle In addition, no contract which is sub
bill certain words on page 58. The ject to competitive bidding comes under words were read so long ago that I be
page 58. The manpower, plants and tools, and permits
them to participate in the mobilization the policy. It refers only to contracts
lieve I should repeat them at this time. program. This policy avoids the man: that are negotiated in the first place. They are:
power problems and high costs which Therefore I do not see how it can cost hundreds of millions of dollars.
Provided further, That none of the funds arise in congested communities where
appropriated by this act shall be available production facilities are already overMr. GOLDWATER. Mr. President, for expenditure under any contract without loaded and where shortages of manwill the Senator yield?
regard to the provisions of law relating to power exist. Mr. KNOWLAND. I yield.
the making, performance, amendment, and I speak on this subject from first-hand Mr. GOLDWATER. I am sure the
modification of contracts, for the purpose knowledge of the situation which exists distinguished Senator from Massachu
of correcting or preventing economic dis- in my own State of Rhode Island. Ref
locations. setts will be interested in what I believe
erence has already been made to it by to be a perfect example of the situation Mr. President, I draw the attention the distinguished Senator from Massawhich is now under discussion. I refer of my colleagues to the fact that strik- chusetts [Mr. SALTONSTÁLL). We are to the Security Parachute Co. of San ing the proviso from the bill is not blessed with a competent and skilled Leandro, Calif. It submitted a bid of changing the existing law. The proviso work force. The proportion of skilled $63.20 per parachute. Yet the company puts something into the labor laws that
puts something into the labor laws that craftsmen and production workers in my that finally got the major portion of the is not now there.
State as compared to our total work business submitted a bid of $67. That As previously stated, the amendment force, is about 50 percent higher than is a difference of $4 a parachute. Of has been included as a rider to section that for the Nation as a whole. We have .course, the bids were not on 1 or 2 643 of the Department of Defense appro- old and well-established business enterparachutes. The bids were made on priation bill. The rider was proposed by prises with a high degree of executive
know-how. We have plant buildings who assembled there 250 seamstresses to of work.
of work. The contract was sent to New and equipment, without the need of re- make the parachutes.
England. sorting to new construction in order to Then a firm in Brooklyn, N. Y., that I want the Senator from Massachuprovide many of the goods the Govern- had heard about the parachute contract setts to believe me when I say I wish ment buys. Nevertheless, unemploy- said to the Air Force, in effect, "If you there were not a single unemployed perment in my State is about twice that of will give us that contract at a little high son in New England. But I do not think the national average. In 1952—a year er price than the price you are paying it fair, since we are supposed to repreof high employment generally, when the to have the work done at Phoenix, our sent the national interest, that in order country was enjoying prosperity-we manufacturer in Lowell, Mass., will make to give employment elsewhere unempaid out about $16.5 million in unem the parachutes.” So that firm got the ployment is created within my State. ployment benefits throughout the year, contract.
Mr. MAYBANK. Mr. President, will to an average of 15,500 Rhode Island
Our committee took the position that the Senator yield for a question? workers who were able and willing such contracts were not proper instru Mr. CHAVEZ. I yield. to work, but had no jobs. When we mentalities for affording relief through Mr. MAYBANK. Am I correct that consider the costs of procurement to the out the Nation.
the incident to which the Senator retaxpayers, it seems to me that we cannot Mr. CHAVEZ, Mr. President, I wish ferred occurred in Las Vegas, N. Mex.? ignore the costs of unemployment. Dur to associate myself with the remarks Mr. CHAVEZ. That is correct. ing the last 15 months about $54 million made by the Senator from Arizona [Mr. Mr. MAYBANK. Do I correctly unin defense contracts were awarded to GOLDWATER) and also the remarks made derstand that the only industry within Rhode Island firms. Less than 10 per- by the Senator from Virginia [Mr. ROB
by the Senator from Virginia [Mr. Rob- the town was completely closed up, and cent of this amount was due to Man- ERTSON).
that no other industrial plant was left? power Policy No. 4. Even that small I desire to compliment my friend, the Mr. CHAVEZ. That is correct. amount, however, was a help to our Senator from Rhode Island (Mr. GREEN), Mr. TOBEY. Mr. President, will the economy.
for trying to take care of the unemploy- Senator yield? I believe, Mr. President, that Govern ment in New England and in his State Mr. CHAVEZ. I yield to the Senator ment procurement should be distributed of Rhode Island. However, there is also from New Hampshire. with careful consideration of available unemployment in my State.
Mr. TOBEY. If there are 250 widows manpower. Whenever economic and se As a result of the policy which seems in the State of New Mexico, why do they curity considerations permit, it seems to to be prevailing at this time, 250 seam- not import 250 widowers to take care of me that production facilities, contracts, stresses in New Mexico were thrown out the situation? and important subcontracts should be of work.
Mr. CHAVEZ. We might eventually located at the sources of labor supply, in Mr. MAYBANK. Mr. President, will invite the Senator from New Hampshire. preference to moving the labor supply. the Senator from New Mexico yield to Mr. KERR. Mr. President, will the It is economically efficient and socially me?
Senator yield for a question? desirable to bring the work to where the Mr. CHAVEZ, I yield.
Mr. CHAVEZ. I yield. workers are and where the plant facili Mr. MAYBANK. I understood that Mr. KERR. The Senator from New ties exist rather than to encourage move that particular industry is the only one Mexico does not think that that would ments of people, with all they imply in in the town of Las Vagas, N. Mex.
carry out the objective to which the Senthe uprooting of families, homes, and Mr. CHAVEZ. Yes, it is the only in- ator from New Mexico referred, does he? other social relationships. For these dustry there. So 250 seamstresses were Mr. CHAVEZ, I may say I have too reasons, Mr. President, I support De- employed in New England, but 250 seam much respect and love for the Senator fense Manpower Policy No. 4, and stresses in New Mexico were thrown out from New Hampshire even to venture a strongly urge all my colleagues to recog of employment.
comment. nize that this policy is not one of sec Mr. MAYBANK. I wish it distinctly Mr. TOBEY. I dislike to see distressed tional interest, but, rather, one which understood, since I had a little to do with womanhood anywhere. goes to the very heart of the national the amendment, that I am not attempt Mr. CHAVEZ. Let me explain what public interest.
ing to discriminate against New England. happens. I shall endeavor to put cerMr. ROBERTSON. Mr. President, the The people of New England are my tain factual information in the RECORD distinguished Senator from Rhode Island friends. I simply do not think such a which was developed at the hearings. has referred to the fact that the com policy is constitutionally or legally cor- We heard a great deal last summer and mittee was not unanimous in regard to rect.
fall about saving money for the Goythe amendment of the Senator from Mr. CHAVEZ. And it is not morally ernment, about taking care of the taxSouth Carolina [Mr. MAYBANK). Of correct.
payer's dollar, rather than wasting it. course it was not unanimous. The Mr. MAYBANK. I agree with the The head man of the Defense Mobilizaamendment of the Senator from South Senator from New Mexico.
tion Board is Mr. Flemming, whom we Carolina endeavored to correct an in Mr. CHAVEZ. Why should 250 know well. He was formerly a member justice being done to the West and the widows in my State be thrown out of of the Civil Service Commission. The South, for the benefit of New England. work, in order to give work to 250 widows distinguished Senator from Kansas (Mr. Naturally the members of the committee in New England?
CARLSON), who is now presiding in the who come from New England preferred Mr. SALTONSTALL. Mr. President, Senate, very nobly and laudably heads to preserve the status quo, and voted will the Senator yield?
the Senate Committee on Post Office and against the amendment.
Mr. CHAVEZ. I yield.
Civil Service. Representative Riley, The distinguished Senator from Rhode Mr. SALTONSTALL. I would most speaking about this program, asked: Island fell into error when he stated that respectfully call to the Senator's atten Taking the price lid offthe policy to which he has referred does tion certain facts. I have checked up on not involve letting contracts at higher the matter, because the Senator men
That is what this isprices. The situation is that, under the tioned it to me recently. Does the Sena
it could conceivably cost a great many more policy program, a contract can be taken tor refer to Deming, N. Mex.?
millions of dollars for the defense effort, from one man and given to another, pro Mr, CHAVEZ, No; it was Las Vegas.
when it is already a burden to carry, isn't
that true? vided the pirce for which the second man Mr. SALTONSTALL. Then there was will perform the contract is not above another case at Deming, to which this
A fair question, a very fair question. the general average nor more than 20 provision of the law did not at all apply. Mr. Flemming's answer, as shown on percent higher than the low price. I
Mr. CHAVEZ. That is correct, but page 918 of the report, reads: point out that the criterion in that re that involved the building of 20-mili The truth is that so far as the cost of the spect is the average price, not the con
meter shells for the Navy. I am talking actual contract is concerned, it could cost tract price. For instance, the Air Force wished to was given to a firm in New Mexico. I have refererd, and also to consider the fact now about a case in which a contract more. But I would plead with the Members
of Congress to consider the offices to which purchase parachutes, and there was When the people were about to go to that when a certification is made there can available labor at Phoenix, Ariz. So the work, then, all of a sudden, this provi be inserted, and most probably will be incontract was let to a man in Phoenix, sion was applied, putting them all out serted, a maximum price differential.
I invite Senators on both sides of the This situation affects New England, DMP No. 4 does not apply to the texaisle, especially those who talk about Mr. President, only because a dispropor tile industry. economy, to listen to what Mr. Flem- tionately large percentage of distressed Mr. JOHNSTON of South Carolina. It ming says about the price differential: areas happens to be located in New Eng- applies to every industry. It might be 5 percent or 10 percent, or
land. When the Senate provided assist Mr. KENNEDY. It does not apply to whatever seemed to be appropriate.
ance for the drought areas of Texas, it the textile industry.
did not do so because it wanted to assist Imagine the administrator of a Gov- the southwestern part of the United
Mr. JOHNSTON of South Carolina. It ernment agency, acting by way of regu
applies to everything. States. It did so because it wanted to lation, administering law and even pass- assist the people who lived in the drought
Mr. KENNEDY. It applies instead ing legislation.
with respect to textile mills working less area.
than an 80-hour week. Mr. JOHNSTON of South Carolina.
In New England there has been serious That is written into the order, to.
Mr. JOHNSTON of South Carolina. unemployment in many communities for Mr. CHAVEZ. I know it is written
There was a notification No. 38 a long time. In the city of Lawrence into the order. That is the way the
Mr. KENNEDY. That had to do with there has been a great deal of unemorder reads. Those who take it for
80 hours. ployment, as much as that which existed granted that some people want to save
Mr. JOHNSTON of South Carolina. I at the height of the great depression. money for the Government, that they All that defense manpower policy No. 4
am glad the Senator has brought that mean what they say when they say, “Let provides is that a businessman in such
up. A great many cotton mills today are us not waste the Government's money," an area is permitted to meet the bid of
working 120 hours, in 3 shifts. should at least observe what is going on
Mr. KENNEDY. That is correct. the lowest bidder in order that employin the Government right now. ment opportunities might be less poorly
Mr. JOHNSTON of South Carolina. Of course I am interested in the city distributed. It does not mean that the
If the Senator were getting rid of his of Las Vegas, N. Mex. I am also inter- Federal Government will pay more
cloth or goods and the Government were ested in the class of work about which eventually.
buying them, would he not throw out we are talking. Of course I am inter
Mr. MAYBANK. Mr. President, will
one shift in order to be able to compete? ested in every State of the Union. I the Senator yield?
Mr. KENNEDY. I cannot believe that would not want unemployment to exist
Mr. KENNEDY. I yielä to the Senator a man would close down an entire shift anywhere in the Union. But it seems from South Carolina.
in order to get a small percentage of unfair that unemployment should be cre
Mr. MAYBANK. I have a great affec- Government businessated in my State by large expenditures
tion for the people of the great State of Mr. JOHNSTON of South Carolina. in another state. It is not right; it is Massachusetts, but that is not the prin
achusetts, but that is not the prin- If he were considering what would be not fair; and I do not think it is in keep- cipal area that is being affected. As the
cipal area that is being affected. As the best for his industry and he wanted to ing with what I consider to be the laud- Senator from New Mexico and the Sena get his goods sold and get them out of able ambitions of certain people to try to tor from Arizona have said, it affects his warehouse. We are giving people save money for the Government. people of other sections.
employment in one place. What are we Mr. KENNEDY. Mr. President, I wish to speak very briefly on the amendment know of than the two distinguished Sen
There are no better Senators that I going to do with the people who are
thrown out of employment. There will proposed by the senior Senator from ators from Massachusetts. But, Massachusetts. I think the facts speak President, this thing is wrong.
be just so many goods made and sold.
Mr. KENNEDY. But, statistically, as for themselves. In spite of what the
Mr. JOHNSTON of South Carolina. the Senator knows, other distress areas Senator from Virginia [Mr. ROBERTSON]
Mr. President, will the Senator from have not resulted. The textile industry has said, I do not think there could be Massachusetts yield?
is a soft industry nationally. a case under DMP No. 4 in which a bid
Mr. KENNEDY. I yield.
Mr. JOHNSTON of South Carolina. der in a distressed area would bid 20 per
Mr. JOHNSTON of South Carolina. We have heard of people who have been cent above another bid.
I want to show the Senator where it Mr. ROBERTSON. Mr. President,
thrown out of work in Arizona, New Mexmight work disadvantageously to the ico, and other States. will the Senator yield?
Government. If the Senator were makMr. KENNEDY. I yield to the Sena
Mr. KENNEDY. Not in the textile ing a bid and Iznew that he might come tor from Virginia.
industry. within 20 percent of being the lowest Mr. ROBERTSON. Twenty percent
Mr. JOHNSTON of South Carolina. bidder, figuring all the costs in, he might But the principle is the same. above the genera average could easily be bidder, figuring all the costs in, he might 20 percent above a bid in Arizona or New lack about 10 percent.
Mr. KENNEDY. I imagine the Sen
Mr. KENNEDY. That would be true ator from South Carolina is as much Mexico.
only with respect to bids being received concerned as I am with unemployment Mr. KENNEDY. No; I think the Sen. only with respect to bids being received
from distressed areas. ator has been misinformed. I think the
in the country, no matter where it is lo
Mr. JOHNSTON of South Carolina. 20 percent merely permits one, if he
cated. We can meet the problem by percomes within the range of price, to meet
The Government then would pay more mitting them to work on defense conthe bid of the man who has been the than it should.
tracts; or we can do it by providing them lowest bidder. If he comes within 20
Mr. KENNEDY. No; I repeat that
No; I repeat that with long-term unemployment or relief percent of the lowest bidder, then he is that would be true only if all of the bid compensation, which has a more deeligible to meet the bid of the lowest ders were from distressed labor areas. bilitating effect upon the economy of the bidder. It does not mean that he can Mr. JOHNSTON of South Carolina. It country. be awarded the contract if someone else gives an unfair advantage over other Mr. JOHNSTON of South Carolina. I bids 20 percent less.
bidders. Why do we find persons em think the Senator from Massachusetts Mr. ROBERTSON. A witness testi- ployed in the textile industry more in believes, as I do, in free competitive enfied-and the Senator from New Mexico
one section of the country than in an terprise throughout the United States. has just read the testimony—that it other section?
But the Senator's plan would not mainmight be 10 percent, 5 percent, or what Mr. KENNEDY. One reason is lower tain competitive business. ever seemed to be appropriate. costs.
Mr. KENNEDY. We are giving a Mr. KENNEDY. What are the facts, Mr. JOHNSTON of South Carolina. preference to those in distressed areas however? The situation has never pre- That section has brought it on itself.
That section has brought it on itself. I seeking a chance to meet the lowest bidvailed that a man who bid 20 percent worked in a cotton mill for 10 years. Is der. But we do that only because we above the bid of another man could get it not true that in operating a cotton have had substantial long-term chronic a contract merely because he came from mill one has to keep modern machinery? unemployment in those areas. It would an area of surplus labor. What the I heard the Senator's speech a few weeks be just as much a calamity if the Govpresent policy does mean is that if he is ago when he made a statement to that ernment should do something about within 20 percent of the lowest bid he effect.
marginal farms. There would be a nais then given an opportunity to meet the Mr. KENNEDY. The Senator is not tional emergency if the Government did lowest bid. If he does not do so, he does giving me a chance to answer. In the not pay support prices.
not pay support prices. In the case of a not get the contract.
first place, the standard procedure of long-term unemployment area, it is only
fair that, in the administration of pro Mr. KENNEDY. Is it not a fact that ness. The Senator from Nebraska [Mr. curement with tremendously large Gov- the area to which the Senator from New
the area to which the Senator from New BUTLER], the Senator from Vermont[ Mr. ernment expenditures, we give the Mexico referred is not a surplus labor FLANDERS), and the Senator from Ohio businessmen of such areas an oppor area?
[Mr. TAFT) are necessarily absent. tunity to make a low bid.
Mr. CHAVEZ. It has not been decided If present and voting the Senator from Next, Mr. President, the Senator from to be one, but the stern reality is there. Nebraska (Mr. BUTLER] would vote New Mexico raised the point about Mr. Many people cannot afford to buy gro
Many people cannot afford to buy gro. “nay,” and the Senator from Vermont Flemming's response in last year's hear, ceries. I know that to be a fact.
[Mr. FLANDERS] would vote "yea." ings. In the hearings this year, Mr. Mr. KENNEDY. If conditions have Mr. CLEMENTS. I announce that the Flemming was asked by the Senator become so serious, would not the Sena Senator from Georgia [Mr. GEORGE), the from South Carolina [Mr. MAYBANK): tor like to see legislation on the books Senator from Iowa [Mr. GILLETTE], and Senator MAYBANK. Mr. Flemming, you have
to permit the people of his State to get the Senator from Tennessee [Mr. KEbeen around a long time. You know last work?
FAUVER] are necessarily absent. year when you first put this in we had a Mr. CHAVEZ. Yes; but I would not The Senator from West Virginia [Mr. hurried-up meeting and you agreed it wasn't wish to see people in Massachusetts
wish to see people in Massachusetts KILGORE), and the Senator from Montana the right thing to do then?
thrown out of work in order to give work [Mr. MURRAY] are absent by leave of the Mr. FLEMMING. Agreed that to give a price to people in New Mexico. By the same Senate. differential was not right.
token, I would dislike to see people in The result was announced-yeas 25, Senator MAYBANK. That is what I am talking about, 20 percent.
New Mexico thrown out of work by giv- nays 62, as follows: Mr. FLEMMING. Wait a minute. They ing the work to citizens in any other
YEAS-25 don't get a price differential of 20 percent. State.
Griswold Pastore more than 20 percent above, then they have The PRESIDING OFFICER. The Bush
Humphrey Payne the opportunity of meeting the low bid. , and question is on the motion of the Senator Capehart
Potter if they don't meet the low bid, they don't get from Massachusetts [Mr. SALTONSTALL]
Clements the business.
Kennedy Saltonstall to strike out the proviso on page 58, lines Douglas Lehman
Tobey It seems to me, Mr. President, that this 15 to 20.
Ferguson makes it clear that it is not a subsidy we
Hickenlooper Monroney if he thinks his bid will be accepted. clerk will call the roll.
Mundt lem outside of a depressed labor area.
Robertson Mr. MAYBANK. Mr. President, with their names:
Russell all respect to the Senator, I think it is
Johnson, Colo. Schoeppel wrong to legislate on an appropriation Anderson Hayden McCarthy
Johnson, Tex. Smathers Hendrickson McClellan
Cordon bill appropriating $38 billion. If only $1 Barrett
Johnston, S. C. Smith, Maine
Kerr were involved, I would be against it, on
Smith, N.J. Bennett Hickenlooper Monroney
Knowland Sparkman principle.
Symington It does not mean Bush Mr. KENNEDY.
Ellender that the Government will pay $52 mil
Long lion more.
Fulbright Malone Mr. MAYBANK. Mr. Flemming can Carlson
Gore not change it. He is not there now;
Johnson, Colo. Russell Mr. CHAVEZ. Mr. President, will the Cooper
Johnson, Tex. Saltonstall
Kennedy Smathers Mr. KENNEDY. I yield.
Knowland Smith, N.J. be in complete agreement with the idea Duff
So Mr. SALTONSTALL's motion was reof the Senator from Massachusetts to
jected. try to take care of distressed labor areas. Ellender Lennon
Mr. CORDON. Mr. President, I But what would be the good of taking Ferguson Long
changed my vote on this motion because Frear work away from seamstresses in New
I now understand that the committee
amendment was not intended by its proMassachusetts? That would only create Gore
poser, the Senator from South Carolina a distress labor area in New Mexico.
[Mr. MAYBANK), to operate with respect Mr. KENNEDY. I certainly agree that The PRESIDING OFFICER. A quo
A quo- to contracts already made, but to operit would do no good, but that is not what rum is present. The question is on ate only with respect to contracts herehas been happening.
agreeing to the motion of the Senator after made. If that is the purpose of the Mr. CHAVEZ. That is what has hap- from Massachusetts (Mr. SALTONSTALL] amendment, I will stand by my vote of pened in New Mexico.
to strike out the proviso beginning on “nay.” Mr. KENNEDY. If a preferential con page 58, in line 15, and extending Mr. MAYBANK. Mr. President, will tract has been removed from New Mex through line 20.
the Senator yield? ico, thus creating a distress area-and Mr. SALTONSTALL. Mr. President, Mr. CORDON. If the committee this is not a part of the policy we are I ask for a division.
amendment were to operate with respect discussing-New Mexico would be in line Mr. ANDERSON, Mr. DOUGLAS, and to contracts already executed, in my for the same preference.
other Senators asked for the yeas and opinion it would dishonor a legal conMr. CHAVEZ. But Massachusetts now nays.
tract made by the Government, and the has the industry. It has already been The yeas and nays were ordered, and committee amendment should be decided that parachutes which were be the legislative clerk called the roll.
stricken. ing made in Las Vegas, N. Mex., and Mr. CORDON (after having voted in Mr. MAYBANK. Mr. President, will Phoenix, Ariz., will be made in Massa the afirmative). Mr. President, how am the Senator yield? chusetts. I recorded?
Mr. CORDON. I yield. Mr. KENNEDY. Las Vegas is not a The PRESIDING OFFICER. · The Mr. MAYBANK. It was never my surplus labor area.
Senator from Oregon is recorded as hav- purpose to suggest that the Government Mr. MAYBANK. Mr. President, will Mr. President, willing voted in the affirmative.
of the United States, under any executhe Senator from New Mexico yield? Mr. CORDON. I ask that my vote be tive order or law, should violate a conMr. CHAVEZ. I yield. changed to "nay."
tract it had made. I believe in the sancMr. MAYBANK. As I understand, it Mr. SALTONSTALL. I announce tity of contracts, as does the Senator was not a Massachusetts bidder who ob that the Senator from New Hampshire from Oregon. The purpose of the comtained the contract.
[Mr. BRIDGES] is absent because of ill- mittee amendment was to protect the