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New York City, November 1-6, 1975
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The original documents are located in Box 5, folder "New York City, November 1-6, 1975"
of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 5 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library
O.
C
THE PRESIDENT HAS SEEN
CONGRESSIONAL QUARTERLY
e
Weekly Report
Vol. XXXIII No. 44
Pages 2297-2344
Nov. 1, 1975
AID TO
NEW YORK
Committees prepare bills
GERALD LIBRARY
despite veto threat (2299);
bankruptcy hearings (2307)
Busing (2313)
Postal Bill (2341)
Tax Reform (2304)
Bentsen Profile (2326)
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
1414 22nd Street, N.W
Washington, D.C. 20037
(202) 296-6800
MAJOR LEGISLATION OF 94TH CONGRESS,
House
Senate
FIRST
SESSION
Democrats
289
62*
Housing and Community Development
As
of
October
31,
1975
Republicans
145
38**
(Number at end of each item indicates latest Weekly Report page references.)
Vacancies
1
0
BILL AND BACKGROUND
HOUSE
SENATE
New York:
FINAL
DEMOCRATS PUSH AHEAD DESPITE VETO THREAT
Agency for Consumer Advocacy. (S 200, HR 7575) To establish an independent
Reported
Passed
nonregulatory federal agency to represent consumer interests before other federal
7/30/75
5/15/75
agencies and the courts. (1623)
Undeterred by the promise of a presidential veto, con-
gressional committees pressed forward in late October
Signed
with proposals that would give New York City a chance to
Senate Committee Vote
Emergency Housing. (HR 5398) To provide emergency assistance to the housing
Passed
Passed
7/2/75
avoid a default on its debts. Without federal help, the city
industry by subsidizing mortgage interest rates for middle income families. (1353)
4/14/75
6/26/75
PL 94-50
was expected to run out of money to meet its expenses by
Following is the 8-5 vote by which the Senate
the beginning of December or even sooner.
Banking, Housing and Urban Affairs Committee
Emergency Railroad Jobs. (S 1730, HR 8672) To improve the nation's rail trans-
On Oct. 30, the Senate Banking, Housing and Urban
reported a bill to provide bond guarantees to New York
Passed
Passed
portation system and reduce unemployment by authorizing funds to work in
10/23/75
Affairs Committee voted 8-5 to approve a bill that would
City:
repairing and improving essential railroads. (2342)
5/16/75
allow the federal government to guarantee up to $11.5-
Yea (8): Democrats Proxmire (Wis.), Sparkman
billion in bonds issued through mid-1979 to cover the city's
(Ala.), Williams (N.J.), McIntyre (N.H.), Cranston
Energy Conservation Taxes. (HR 6860) To place an excise tax on industrial use of
Finance Committee
Passed
expenses. To qualify for guarantees, the city and state
(Calif.), Stevenson (III.) and Biden (Del.). Republican
oil and natural gas and to provide for flexible use of quotas and import fees to cur-
Began Markup
tail petroleum imports. (1638)
6/19/75
7/21/75
would have to meet a long list of strict conditions. If these
Packwood (Ore.).
conditions were not met, the bill would provide limited
Nay (5): Democrat Morgan (N.C.). Republicans
federal assistance to help New York maintain essential ser-
Tower (Texas), Brooke (Mass.), Helms (N.C.) and Garn
Energy Conservation and Oil Policy. (HR 7014, S 622) To authorize the President
Passed
Passed
In Conference
vices after a default.
(Utah).
to propose a gasoline rationing plan, to establish oil price controls, and to en-
9/23/75
4/10/75
10/1/75
courage national conservation of energy. (2043)
A House Banking, Currency and Housing subcom-
mittee began to draft similar legislation the same day right
after Treasury Secretary William E. Simon reaffirmed
its creditors. The petition would spell out a proposed plan
Energy-Natural Gas Price System. (S 2310) To revise the pricing system for
Passed
to adjust debts and bring the city's budget into balance.
natural gas to meet expected winter shortages, and to end federal price regulation
10/22/75
President Ford's veto threat.
of new natural gas. (2292)
Once a court accepted the petition, those holding debts the
"I can tell you-and tell you now-that I am prepared
city could not pay off could not sue to collect their claims.
to veto any bill that has as its purpose a federal bail-out of
Available funds would be used to maintain services while
Energy-Oil Import Fees. (HR 1767) To suspend for 90 days the President's
Passed
Passed
Vetoed
New York City to prevent a default," Ford told the National
the city negotiated new payment schedules with creditors
authority to adjust oil imports. (1834)
2/5/75
2/19/75
3/4/75
Press Club on Oct. 29.
under court supervision.
The President's promise may make default inevitable
The President's plan amplified proposals the Justice
House
because key Democrats in both houses conceded that it
Farm Supports. (HR 4296) To raise price supports and income protection for
Passed
Passed
Sustained
Department had presented Oct. 6 to a House Judiciary sub-
farmers. (1045)
3/20/75
3/26/75
would be next to impossible to override a veto even if the
Veto
committee, which was developing bankruptey legislation
5/13/75
city's supporters found the votes to pass a bill at all. The
tailored to New York's problems. A Senate Judiciary sub-
Senate committee bill faced a certain filibuster on the floor,
Ways and Means
Finance Committee
and prospects for House approval were equally shaky.
committee chaired by Quentin N. Burdick (D N.D.) quickly
Health Insurance for Unemployed. (HR 5970, S 625) To provide emergency health
Reported 4/22/75
Began Hearings 3/7/75
called hearings for Oct. 31 to consider the President's
insurance for unemployed workers and their families. (1034)
Commerce
Labor Committee
In his Oct. 29 speech, Ford argued that the bond
proposals. (Background on bankruptcy, p. 2307)
Reported 5/7/75
Reported 4/15/75
guarantee proposals developed in Congress were a "mirage"
Ford acknowledged, however, that even if it postponed
Education and
Labor and Public
because they only would postpone the day the city had to
payment of its debts the city still might face cash shortfalls
Public Jobs (S 1695, HR 2584). To expand the emergency public service employ-
Labor Subcommittee
Welfare Subcommittee
learn to live within its own resources. A guarantee, he com-
in the immediate future. City officials had projected a $1.2-
ment program. (1393)
Reported to Full
Concluded Hearings
plained, "encourages the continuation of 'polities as usual'
Committee 6/19/75
billion cash shortfall between December and March even if
9/29/75
in New York-which is precisely not the way to solve the
New York stopped all debt service. Ford said the city and
House
Strip Mining. (HR 25) To provide minimum federal standards for regulation of sur-
problem." (Speech text. 11. 2301)
Passed
Passed
Sustained
Ford also objected to the "terrible precedent" the
state would have to consider new taxes or further budget
face mining of coal. President Ford pocket vetoed in 1974 a bill (S 425) almost
3/18/75
3/12/75
Veto
cuts. (Shortfalls, box. p. 2300)
identical to HR 25. (1255)
6/10/75
proposal would set for other cities seeking federal aid. He
But in any event, the President said that "the federal
Education and
added that guarantees would bail out city officials and
Labor and Public Welfare
government will work with the [bankruptcy] court to
Student Aid. (HR 3471) To amend and extend the federal government's assistance
Labor Subcommittee
Subcommittee
New York banks, whom he blamed squarely for the city's
assure that police, fire and other essential services for the
programs for students in higher education. A second bill (HR 3470) extending other
Concluded Hearings
Concluded Hearings
financial mess.
protection of life and property in New York are main-
aspects of the Higher Education Act of 1965 is to be taken up separately. (1035)
4/11/75
7/30/75
should all the working people of this country be
tained." Asked if the federal help might include loans, he
forced to rescue those who bankrolled New York City's
Tax Reduction. (HR 2166) To cut federal taxes by $22.8-billion in order to stimulate
Passed
Signed
said that he did not "want to prescribe precisely the means
Passed
policies for so long-the large investors and big banks?" he
or method."
the economy, and to repeal the percentage depletion allowance for some oil and
2/27/75
3/22/75
3/29/75
asked.
gas income. A second tax bill is now being marked up. (696)
PL 94-12
The Ford proposal also would provide another way for
Ford Proposal
the city to raise cash. The court could authorize the city to
Vietnam Refugee Relief Act. (HR 6755) To authorize necessary funds for the
Passed
Passed
Signed
borrow by issuing "certificates of debt" that would be paid
evacuation and resettlement of Vietnamese and Cambodian refugees. (1075)
5/14/75
5/16/75
5/23/75
While he opposed federal action to avoid a default, the
off before all other debts. But key senators questioned
PL 94-23
President proposed steps designed to make it easier for the
whether investors would buy New York certificates under
Voting Rights. (HR 6219) To extend the Voting Rights Act of 1965, scheduled
city to maintain basic services after default. His key
any circumstances.
to expire Aug. 6, 1975, suspending the use of literacy tests and similar qual-
Passed
Passed
Signed
legislative proposal would amend federal laws that made
ifying devices, requiring Justice Department clearance of changes in election
6/4/75
7/24/75
8/6/75
it impossible for New York to qualify for bankruptcy and
Congressional Reaction
PL 94-73
laws and authorizing federal examiners to oversee compliance. (1666)
work with a court to readjust payment of debts.
While the bankruptcy proposal itself was not con-
*Includes Harry F. Byrd Jr., elected as an independent
**Includes James L
Buckley, elected as a Conservative
The proposal would allow the city, with state approval,
troversial, Democrats in Congress condemned the
Published weekly by Congressional Quarterly, Inc., 1414 22nd Street, N.W.
photocopy, recording or any information storage and retrieval system. Second rights
to file a petition of bankruptcy without the agreement of
Washington, D.C. 20037 All reproduction rights, quotations, broadcasting publication,
are reserved, including use of Congressional Quarterly material in campaign
President's refusal to consider ways to prevent a default.
reserved for current editorial clients No part of this publication may be reproduced or
supplements. advertisements and handbooks without permission Rates are furnished
transmitted in any form or by any means, electronic or mechanical, including
on request Second class postage paid at Washington, D.C.
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
Reproduction prohibited whole in part except by editorial clients
Nov. 1, 1975-PAGE 2299
Housing and Community Development 3
Housing and Community Development - 2
Brooke specifically questioned whether the city's
President's plan probably would be unmarketable without
By providing federal aid only after the city went
Committee Proposal
municipal unions would accept reductions in pension
a federal guarantee.
bankrupt, complained Senate Banking Committee
The bill approved by the committee was based on a
coverage. Stevenson countered that if the unions were not
Proxmire said after the vote to approve the Stevenson
Chairman William Proxmire (D Wis.), "the President has
proposal drafted by Adlai E. Stevenson III (D Ill.), whose
willing to make this sacrifice then the city would just
bill that the committee planned to file a formal report Nov.
chosen a course that would shove New York into a tin-cup
default.
opposition to a bond guarantee plan supported by Proxmire
3 and that the Democratic leadership would meet Nov. 4 to
status and onto the federal government's back for years to
Tower opposed federal guarantees of tax-exempt
consider when to schedule it for floor action.
had thwarted Proxmire's desire to report a bill quickly.
bonds, arguing that they would undercut the market for
The filibuster against the measure was likely to be
come."
(Background, Weekly Report p. 2256)
Democratic leaders in both houses concluded that
Stevenson worked with Proxmire over the Veterans
other non-guaranteed (but tax-exempt) municipal bonds.
lengthy. Its leaders, Harry F. Byrd Jr. (Ind Va.) and James
Congress had a responsibility to act on New York legisla-
The consensus favored making the bonds taxable, but the
B. Allen (D Ala.), already had engaged in almost daily floor
Day weekend to come up with a proposal both could sup-
tion despite the President's position. Republicans
committee did not have jurisdiction over tax laws.
discussions detailing their arguments against the bill. Byrd
port.
countered that the President had proposed the most
Stevenson presented the proposal to the committee on
To avoid sending the bill to the Finance Committee,
also had continued to object to the Banking Committee's
reasonable course. "The President has said exactly the
Oct. 28, but Proxmire accommodated Tower's insistence
which did have jurisdiction, the committee approved
meeting to markup the bill when the Senate was in
right thing and proposes the correct solution," said Robert
that the committee wait to hear the President's recommen-
another way to reduce the return on the bonds. The federal
session.
P. Griffin (Mich.), Senate minority whip.
dations and agreed to delay a final vote until Oct. 30. With
government would charge a fee of up to 3½ per cent to
Stevenson's support, Proxmire had the votes to win
guarantee a bond; the fee, in effect, would be passed on to
House Action
Senate Committee Action
approval of the bill Oct. 28, but he and Stevenson were hop-
bond purchasers. Proxmire also was confident that the tax-
ing to pick up some extra votes during the delay to
writing House Ways and Means and Senate Finance Com-
Moving swiftly after the Senate committee acted, the
broaden the support they need to break a filibuster.
mittees would approve legislation soon to tax the bonds,
House Banking Subcommittee on Economic Stabilization
Despite John G. Tower's (R Texas) assertions that the
The alternative proposed by Stevenson built on Prox-
but insisted that New York could not wait for these com-
Oct. 31 agreed, by a 10-6 vote, to send its own bond
legislation was doomed, the Senate Banking Committee
mire's plan, but added even stiffer requirements before the
mittees to act.
guarantee proposal to the full committee. The full com-
voted to report its bond guarantee proposal the day after
city could qualify for guarantees. (Provisions of Proxmire
mittee planned to consider the bill on Nov. 3.
Brooke Substitute
the President promised a veto.
plan, Weekly Report p. 2256)
Two Democrats and all of the subcommittee's
Proxmire pointed out that Presidents had changed
The Stevenson bill would allow the federal government
The day after the President's speech, Tower and
Republicans except Stewart B. McKinney (R Conn.) op-
their minds before. "There's nothing absolute in [Ford's]
to guarantee $4-billion in one-year notes in fiscal 1976, $3.5-
Brooke continued to oppose the Stevenson bill on practical
posed the bill.
thinking," added Harrison A. Williams Jr. (D N.J.).
billion in fiscal 1977, $2.5-billion in fiscal 1978 and $1.5-
grounds. "The fact of the matter is there ain't going to be
The subcommittee proposal was based on a plan
With one exception, the 8-5 vote to report the bill went
billion in fiscal 1979. Proxmire's original proposal would
any loan guarantee legislation," Tower insisted, in light of
drafted by Thomas L. Ashley (D Ohio), subcommittee
along expected lines. The exception was Robert W.
have allowed guarantees of up to $6-billion annually during
the promised veto.
chairman. It would provide up to $7-billion in federal
Packwood (R Ore.) who voted to report the bill but said he
the same period.
"It's foolish and folly to go charging up to the Senate
guarantees if the city met certain conditions. In general,
might decide to oppose it on the floor. Packwood joined
Like the earlier plan, the Stevenson bill would require
floor with legislation we know cannot pass," Brooke agreed.
these conditions were not as stiff as those spelled out in the
seven of the committee's eight Democrats. Democrat
the state to raise new taxes and the city to balance its
"All we want is a chance," Proxmire told Tower.
Senate committee's bill, but McKinney pressed the subcom-
Robert Morgan (N.C.) voted against the bill with the com-
budget by fiscal 1978. An additional condition for
"When I talk to people and explain the stringent measures
mittee to tighten up some of them.
mittee's four other Republicans. (Vote breakdown, box, p.
guarantees would require bondholders with at least 65 per
of this legislation. their attitudes change."
McKinney, a strong supporter of aid to New York,
2299)
cent of existing debt issued by the state on behalf of the city
Urging the committee to look at the "art of the
argued that stricter requirements would help make the bill
and those holding at least 40 per cent of the city's own
possible," Brooke proposed a substitute for the Stevenson
more acceptable to the House. In another effort to expand
short-term obligations to agree voluntarily to exchange
plan that would have made direct loans available to the city
support, Ashley said that the Banking Committee probably
their notes for longer-term, lower-interest bonds. This con-
on a standby basis after a default and provided assistance
would agree to send its bill to the House Judiciary Com-
The Arithmetic of Default
dition would reduce the immediate expense of paying off
to cities and states that could not market their bonds
mittee so that bankruptcy amendments like those proposed
city debts falling due in the near future.
because of the New York default. Democrats countered
by Ford could be added to the measure. This strategy might
Even if New York City stops paying off all its ex-
Private investors also would have to invest in un-
that the proposal could cost the federal government more
make it harder for the President to veto the bill because use
isting debts, it still will need $1.2-billion to meet
guaranteed bonds. The bill did not specify an amount, but
than the Stevenson bill. The subsitute was rejected 6-7 with
of the guarantees would be left up to a board chaired by
remaining expenses from December to March, city of-
the unguaranteed investments were expected to total $6.5-
all of the Democrats except Morgan opposed.
Simon.
ficials project. City Comptroller Harrison J. Goldin
billion by fiscal 1980. This provision was designed to make
By a 4-9 vote, the committee also rejected an amend-
Also trying to prepare a more favorable climate for the
outlined the arithmetic of New York's financial condi-
sure that the city would not remain reliant on federally
ment to the Stevenson bill that would have eliminated bond
legislation, members of the New York state delegation took
tion for the Senate Banking, Housing and Urban Af-
guaranteed bonds to raise capital in the future.
guarantees before default, but allowed federal guarantees
over the House floor for several hours on Oct. 28 to discuss
fairs Committee on Oct. 23:
Another condition not included in the Proxmire plan
of debt certificates after default. Stevenson and Brooke
the city's problems.
The city needs a total of $13.1-billion in cash to
would require the city to devise a way to reduce the money
generally agreed that the debt certificates proposed in the
-By Elizabeth Bowman
meet anticipated expenses from Oct. 1, 1975, to June 30,
it spent on municipal employees' pension plans. The city
1976. This total includes $7.4-billion in operating ex-
could reduce these costs in a number of ways if they were
penses, $1.1-billion for capital spending and $4.6-billion
satisfactory to a three-member federal board that would be
to pay off debts.
free to impose other conditions on the city. The Treasury
TEXT OF
whom I owe the duty of stating my convic-
The next day Mayor Beame testified
Projected revenues for the same period are $8.4-
tions and conclusions, and to you, whose
secretary, labor secretary and Federal Reserve Board
here in Washington that the financial
FORD'S SPEECH
job it is to carry them throughout the Na-
resources of the city and state of New York
billion, leaving a cash need of $4.6-billion. (Figures
chairman would serve on the board.
tion and around the world.
were exhausted. Governor Carey agreed.
have been rounded.) The city also must pay off a debt
If the city did not qualify for guarantees and defaulted,
The time has come to sort facts and
It's now up to Washington, they said,
to the state, bringing the total cash need to $4.8-billion.
the bill would make back-up assistance available to help
Following is the White House text
figures from fiction and fear-mongering in
and unless the Federal Government in-
State-backed borrowing is expected to provide some
maintain essential services. The federal board could
of President Ford's Oct. 29 speech to
this terribly complex situation. The time
tervenes, New York City within a short
funds, SO the actual sum needed between December
approve federal guarantees on up to $500-million in three-
the National Press Club on New York
has come to say what solutions will work
time will no longer be able to pay its bills.
and June will be $3.9-billion.
month notes, including certificates of debt issued under
City's financial crisis.
and which should be cast aside.
The message was clear: Responsibility
Because cash flow problems are more severe dur-
bankruptcy proceedings. No guarantees could be made
And the time has come for all
for New York City's financial problems is
ing some parts of the year than others, the city still
Today I want to talk to you about a
Americans to consider how the problems of
being left on the front doorstep of the
after March 31, 1976.
matter of concern to all Americans.
New York and the hard decisions they
Federal Government-unwanted and aban-
would have substantial cash needs even if it stopped
New York City, where one out of every
demand, foreshadow and focus upon poten-
doned by its real parents.
paying off all of the $4.6-billion in debt service. In
Objections
25 Americans lives, through whose "Golden
tial problems for all Federal, State and
Many explanations have been offered
December, Goldin said, the city would have a cash
shortfall of $389-million if it stopped all debt service.
Both Tower and Edward W. Brooke (R Mass.) called
Door" untold millions have entered this
local governments-problems which de-
about what led New York City deeper and
the plan unworkable. "It seems to me that these conditions
land of liberty, faces a financial showdown.
mand equally hard decisions from them.
deeper into this quagmire.
The additional shortfall would be $329-million in
The time has come for straight
One week ago New York City tottered
Some contend it was long-range
January, $122-million in February and $380-million in
cannot conceivably be met," Brooke said, calling it a "real
talk-to these eight million Americans and
upon the brink of financial default which
economic factors such as the flight to the
March under the same conditions, he estimated.
disservice" to give hope to New Yorkers when "in fact, we
to the other 206 million Americans to
was deferred only at the eleventh hour.
suburbs of the city's more affluent citizens,
will be doing absolutely nothing for them."
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
Reproduction prohibited whole or part except by editorial clients
Nov. 1, 1975-PAGE 2301
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
PAGE 2300-Nov. 1, 1975
Reproduction prohibited in whole or in part except by editorial clients
Housing and Community Development
Housing and Community Development 5
the migration to the city of poorer people,
New York City is the only major city in the
But, the New York City record of bad
Now, what is the solution to New
reorganization of New York City's financial
act in its own behalf, orderly proceedings
and the departure of industry.
country that picks up the entire burden.
financial management is unique among
York's dilemma?
affairs-should that become necessary.
would then be supervised by a Federal
Others argue that the big metropolitan
The record shows that when New
municipalities. Other communities have a
There are at least eight different
How would this work? The city, with
Court.
city has become obsolescent, that decay and
York's municipal employees retire they
solid reputation for living within their
proposals under consideration by the
State approval, would file a petition with
The ones who would be most affected
pollution have brought a deterioration in
often retire much earlier than in most cities
means. In recent days and weeks, other
Congress intended to prevent default. They
the Federal District Court in New York un-
by this course would be those who are now
the quality of urban life, and that New
and at pensions considerably higher than
local governments have gone to investors
are all variations of one basic theme: that
der a proposed new chapter XVI of the
fighting tooth and nail to protect their
York's downfall could not be prevented.
sound retirement plans permit.
with clean records of fiscal responsibility
the Federal Government would guarantee
Bankruptcy Act. The petition would state
authority and their investments: New York
Let's face one simple fact: most other
The record shows New York City has
and have had no difficulty raising funds.
the availability of funds to New York City.
that New York City is unable to pay its
officials and the city's creditors. The
cities in America have faced these same
18 municipal hospitals; yet, on an average
The greater risk is that any attempt to
Veto
debts as they mature and would be accom-
creditors will not be wiped out; how much
challenges, and they are still financially
day, 25 percent of the hospital beds are
provide a Federal blank check for the
leaders of New York City would ensure that
I can tell you now that I am prepared
panied by a proposed way to work out an
they will be hurt will depend upon the
healthy today. They have not been luckier
empty. Meanwhile, the city spends millions
to veto any bill that has as its purpose a
adjustment of its debts with its creditors.
future conduct of the city's leaders.
than New York; they simply have been
more to pay the hospital expenses of those
no long-run solution to the city's problems
Federal bail-out of New York City to pre-
The Federal Court would then be
For the people of New York, this plan
better managed.
who use private hospitals.
will ever occur.
vent a default.
authorized to accept jurisdiction of the
will mean that essential services will con-
There is an old saying: "The harder you
The record shows New York City
I can understand the concern of many
I am fundamentally opposed to this so-
case. Then there would be an automatic
tinue. There may be some temporary in-
try, the luckier you get.' I like that defini-
operates one of the largest universities in
citizens in New York and elsewhere. I un-
called solution, and I will tell you why.
stay of suits by creditors so that the essen-
conveniences, but that will be true of any
tion of "luck".
the world, free of tuition for any high
derstand because I am also concerned.
school graduate, rich or poor, who wants to
What I cannot understand-and what
Basically, it is a mirage. By giving a
tial functions of New York City would not
solution that is adopted.
During the last decade, the officials of
Federal guarantee we would be reducing
be disrupted.
For the financial community, the
New York City have allowed its budget to
attend.
nobody should condone-is the blatant
rather than increasing the prospect that
It would provide a breathing space for
default may bring some temporary dif-
triple. No city can expect to remain solvent
As for New York's much-discussed
attempt in some quarters to frighten the
the city's budget will ever be balanced. New
an orderly plan to be developed SO that the
ficulties but the repercussions should not
if it allows its expenses to increase by an
welfare burden, the record shows more
American people and their representatives
York City's officials have proved in the past
city could work out arrangements with its
be large or long-lasting.
average of 12 percent every year, while its
than one current welfare recipient in ten
in Congress into panicky support of patent-
ly bad policy. The people of this country
that they will not face up to the city's
creditors.
Finally, for the people of the United
tax revenues are increasing by only 4 to 5
may be legally ineligible for welfare
massive network of pressure groups as long
While New York City works out a com-
States, this means that they will not be
percent a year.
assistance.
will not be stampeded; they will not panic
as any alternative is available. If they can
promise with its creditors the essential
asked to assume a burden that is not of
Certainly I do not blame all the good
when a few desperate New York officials
scare the whole country into providing that
governmental functions of the city would
their own making and should not become
The Record
people of New York City for their generous
and bankers try to scare New York's
As Al Smith, a great Governor who
mortgage payments out of them. We have
alternative now, why shouldn't they be con-
continue.
their responsibility. This is a fair and sen-
instincts or for their present plight. I do
fident they can scare us again into
In the event of default, the Federal
sible way to proceed.
came from the sidewalks of New York, used
blame those who have misled the people of
heard enough scare talk.
providing it three years from now? In
Government will work with the court to
to say: "Let's look at the record."
New York City about the inevitable conse-
short, it encourages the continuation of
assure that police, fire and other essential
Lesson
The record shows that New York City's
quences of what they were doing over the
Solution
"politics as usual" in New York-which is
services for the protection of life and
There is a profound lesson for all
wages and salaries are the highest in the
last 10 years.
What we need now is a calm, rational
precisely not the way to solve the problem.
property in New York are maintained.
Americans in the financial experience of
United States. A sanitation worker with
The consequences have been:
decision as to what the right solution
Such a step would set a terrible prece-
The proposed legislation will include
our biggest and richest city.
three years experience now receives a base
a steady stream of unbalanced
is-the solution that is best for the people
dent for the rest of the Nation. It would
provision that as a condition of New York
Though we are the richest Nation in
salary of nearly $15,000 a year. Fringe
budgets;
of New York and best for all Americans.
promise immediate rewards and eventual
City petitioning the court, the city must not
the world, there is a practical limit to our
benefits and retirement costs average more
massive growth in the city's debt;
To be effective, the right solution must
rescue to every other city that follows the
only file a good faith plan for payments to
public bounty, just as there is to New
than 50 percent of base pay. Four-week
extraordinary increases in public
meet three basic tests:
tragic example of our largest city. What
its creditors but must also present a
York's.
paid vacations and unlimited sick leave
employee contracts;
It must maintain essential public ser-
restraint would be left on the spending of
program for placing the fiscal affairs of the
Other cities, other States as well as the
after only one year on the job.
and total disregard of independent ex-
vices for the people of New York City. It
other local and state governments once it
city on a sound basis.
Federal Government are not immune to the
The record shows that in most cities,
perts who warned again and again that the
must protect the innocent victims of this
becomes clear that there is a Federal rescue
In order to meet the short term needs
insidious disease from which New York is
municipal employees have to pay 50 per-
city was courting disaster.
tragedy. There must be policemen on the
squad that will always arrive in the nick of
of New York City the court would be em-
suffering. This sickness is brought on by
cent or more of the cost of their pensions.
There can be no doubt where the real
beat, firemen in the station, nurses in the
time?
powered to authorize debt certificates
years and years of higher spending, higher
responsibility lies. And when New York
emergency wards.
Finally, we must all recgognize who
covering new loans to the city which would
deficits, more inflation and more borrow-
City now asks the rest of the country to
Second, the solution must assure that
the primary beneficiaries of a Federal
be paid out of future revenues ahead of
ing to pay for higher spending, higher
guarantee its bills, it can be no surprise
New York City can and will achieve and
guarantee program would be. The
other creditors.
deficits and on and on.
that many other Americans ask why.
maintain a balanced budget in the years
beneficiaries would not be those who live
Thus, the legislation I am proposing
It is a progressive disease and there is
Why, they ask, should they support ad-
ahead.
and work in New York City because the
will do three essential things.
no painless cure.
vantages in New York that they have not
And third, the right solution must
really essential public services must and
First, it will prevent, in the event of a
Those who have been treating New
been able to afford for their own com-
guarantee that neither New York City nor
will continue.
default, all New York City funds from be-
York's financial sickness have been
munities?
any other American city ever becomes a
The primary beneficiaries would be the
ing tied up by lawsuits.
prescribing larger and larger doses of the
Why, they ask, should all the working
ward of the Federal Government.
New York officials who would thus escape
Second, it will provide the conditions
same political stimulants that has proved
people of this country be forced to rescue
Let me digress a minute to remind you
responsibility for their past follies and be
for an orderly plan to be developed for
so popular and successful in Washington
those who bankrolled New York City's
that under our constitutional system, both
further excused from making the hard
payments to New York's creditors over the
for so many years.
policies for so long-the large investors and
the cities and the Federal Government
decisions required now to restore the city's
long term.
None of us can point a completely
big banks?
were the creatures of the States. The States
fiscal integrity.
Third, it will provide a way for new
guiltless finger at New York. None of us
In my judgment, no one has yet given
delegated certain of their sovereign
The secondary beneficiaries would be
borrowing to be secured by pledging future
should now derive comfort or pleasure
these questions a satisfactory answer.
powers-the power to tax, police powers
the large investors and financial in-
revenues.
from New York's anguish.
and the like-to local units of self-
stitutions who purchased these securities
I don't want anybody misled. This
But neither can we let the contagion
'Scare Story'
government. And they can take these
anticipating a high rate of tax-free return.
proposed legislation will not, by itself, put
spread.
Instead, Americans are being told that
powers back if they are abused.
the affairs of New York City in order. Some
As we work with the people of New
unless the rest of the country bails out New
The States also relinquished certain
New Law
hard measures must be taken by the of-
York to overcome their difficulties-and
York, there will be catastrophe for the
sovereign powers to the Federal
Does this mean there is no solution?
ficials of New York City and New York
they will-we must never forget what
United States and perhaps for the world.
Government-some altogether and some to
Not at all. There is a fair and sensible way
State. They must either increase revenues
brought this great center of human civiliza-
Is this scare story true?
be shared. In return the Federal Govern-
to resolve this issue, and this is the way to
or cut expenditures or devise some com-
tion to the brink.
Of course there are risks that default
ment has certain obligations to the States.
do it:
bination that will bring them to a sound
If we go on spending more than we
could cause temporary fluctuations in the
I see a serious threat to the legal
If the city is unable to act to provide a
financial position. Careful examination has
have, providing more benefits and services
financial markets. But these markets have
relationships among our Federal, State and
means of meeting its obligations, a new law
convinced me that those measures are
than we can pay for, then a day of reckon-
already made a substantial adjustment in
local governments in any congressional ac-
is required to assure an orderly and fair
neither beyond the realm of possibility nor
ing will come to Washington and the whole
anticipation of a possible default by New
tion which could lead to disruption of this
means of handling the situation.
beyond the demands of reason. If they are
country just as it has to New York.
York City.
traditional balance. Our largest city is no
As you know, the Constitution em-
taken, New York City will, with the
Claims also are made that because of
different in this respect than our smallest
powers the Congress to enact uniform
Let me conclude with one question of
assistance of the legislation I am proposing,
my own:
New York City's troubles, other
town. If Mayor Beame doesn't want Gover-
bankruptcy laws. Therefore, I will submit
be able to restore itself as a fully solvent
When that day of reckoning comes,
municipalities will have grave difficulty
nor Carey to run his city, does he want the
to the Congress special legislation
operation.
who will bail out the United States of
selling their bonds. I know this troubles
President of the United States to be acting
providing the Federal courts with suf-
To summarize, the approach I am
America?
many thoughtful citizens.
Mayor of New York?
ficient authority to preside over an orderly
recommending is this: If New York fails to
Thank you.
PAGE 2302-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
Reproduction prohibited in whole or part except by editorial clients
Reproduction prohibited whole in part except by aditorial clients
Nov. 1, 1975-PAGE 2303
Economic Affairs 2
House Rejection:
Introduced by Subcommittee Chairman John H. Dent
(D Pa.) Oct. 9, HR 10130 reflected proposals urged by the
Economic Affairs
DEBT CEILING EXTENSION
AFL-CIO. "A minimum wage of $3 an hour must be es-
tablished. if the minimum wage is to be something better
For the second time in 1975, the House Oct. 29 rejected
than a poverty wage," declared Andrew J. Biemiller, direc-
legislation to extend and raise the federal debt limit.
tor of the AFL-CIO's department of legislation, Oct. 22.
WAYS AND MEANS EXTENDS BUSINESS TAX CUTS
By a 178-217 vote, the House defeated the Ways and
Business organizations testifying Oct. 23 were unan-
Means Committee's proposal (HR 10049) to continue the
imously opposed to all of the proposed liberalizations of
temporary federal debt ceiling through March 31, 1976, and
the minimum wage laws. They claimed the bill would
The House Ways and Means Committee Oct. 28-29
turned down Joe D. Waggonner's (D La.) proposal for a per-
increase that limit to $597-billion. (Vote 480, p. 2334)
generate new inflation and deepen unemployment.
voted to extend 1975 business tax reductions but shelved
manent 10 per cent credit.
The existing $577-billion temporary ceiling was due to
Two of the business witnesses also objected to the
more costly tax proposals to encourage capital formation.
By voice vote, the panel Oct. 29 agreed to a two-year
expire Nov. 15. That would leave the debt limit at its per-
quick scheduling of the hearings, which they said left little
The panel also sidestepped a corporate bail-out con-
extension of 1975 adjustments in the corporate surtax.
manent $400-billion level, far below outstanding federal
time to collect and prepare data relating to the conse-
troversy by putting aside a revived proposal that would
Those changes were expected to cut business taxes by about
government debt commitments, and keep the Treasury
quences of the proposed legislation. "While we recognize
allow financially troubled businesses to recoup roughly
$1.9-billion in 1976, and $2.1-billion in 1977.
from borrowing more funds to finance government
the political expedience of introducing a minimum wage
$1.4-billion in taxes paid during profitable years as far back
Under permanent law, a corporation was taxed at a
operations.
bill shortly before an election year...political expediency
as 1962.
regular 22 per cent rate on its first $25,000 in profits, with
The House by a 175-225 vote on June 16 rejected the
must not be permitted to limit debate nor to obscure the
Both the capital formation and bail-out issues were set
income above that level subject to a 26 per cent surtax that
Ways and Means Committee's proposal for a $616.1-billion
basic implications of this legislation," said Robert T.
aside for further study. The committee moved relatively
brought the full corporate tax rate to 48 per cent. The 1975
debt limit through fiscal 1976 (HR 7545). With the tem-
Thompson, chairman of the labor relations committee of
swiftly, however, to write 1975 business tax cut extensions
law raised the surtax exemption to $50,000 and cut the tax
porary debt limit about to expire on July 1, however,
the Chamber of Commerce of the United States.
into its tax revision bill alongside a $12.7-billion extension
rate on the first $25,000 to 20 per cent.
Congress June 26 cleared a substitute measure (HR 8030)
Labor Department representatives are scheduled to
of personal tax reductions. (Individual tax cut decisions,
In a series of close votes, the committee postponed ac-
that compromised on a $577-billion limit through Nov. 15.
testify on the bill Nov. 5.
Weekly Report p. 2251)
tion on various capital formation proposals pending a six-
(Earlier action, Weekly Report p. 1408, 1315)
month study by a proposed panel task force. In a 19-18 vote,
Since expiration of the temporary ceiling on Nov. 15
Dent Bill
Business Tax Cuts
for instance, the panel referred to the task force a proposal
could disrupt federal government functions, the House was
HR 10130 would allow the $2.30 wage rate to take
Before moving on to wrap up earlier tentative
by Barber B. Conable Jr. (R N.Y.) to broaden the asset
likely to approve a follow-up Ways and Means recommen-
effect as scheduled Jan. 1, 1976, but would then raise it to
decisions on other tax issues, the Ways and Means Com-
depreciation range (ADR) system for capital recovery.
dation, perhaps at a reduced debt level. As in the June 16
$2.65 an hour after June 30, 1976, and to $3.00 an hour on
mittee accepted Chairman Al Ullman's (D Ore.) plan to ex-
vote, however, liberal Democrats and fiscal conservatives
Jan. 1, 1977. Thereafter, minimum wage rates would be
tend roughly $5-billion in 1975 business tax relief. (1975 tax
Loss Carryback
teamed up to defeat a debt ceiling extension in a token
automatically adjusted by increases in the consumer price
cut bill, Weekly Report p. 631)
After tense maneuvering that finally split support for
protest against growing federal spending and indebtedness.
index (CPI). Such adjustments could be made every three
Continuing the basic format of those 1975 reductions,
the plan, the panel by a 26-11 vote Oct. 28 sidetracked
Unlike the June 16 debate, which was marked by fre-
months, provided that the CPI increased by at least 3 per
the committee-approved package would:
James A. Burke's (D Mass.) proposal to give corporations a
quently jovial partisan jockeying over the blame for federal
cent in each of three consecutive months over a base month
Extend through 1980 the 10 per cent investment credit
retroactive tax break to generate badly needed cash.
deficits, the House considered HR 10049 only briefly before
rate. The adjustment would be equal to the highest CPI
that Congress enacted for 1975-76.
Burke's proposal, sought by corporations that had suf-
voting down the $597-billion ceiling.
reached during the three-month period, plus 1 per cent.
Extend through 1977 adjustments in the corporate sur-
fered large losses in the 1970s, would allow all corporations
Republicans took the opportunity, however, to criticize
Covered agricultural workers and workers first
tax rate and exemption structure that were provided for
the option of carrying one year's operating losses back
congressional spending habits and what top-ranking Ways
covered under the 1974 amendments-primarily federal,
1975.
against income earned in eight previous years, thus cutting
and Means Republican Herman T. Schneebeli (Pa.) termed
state and local government workers and domestics-would
The panel Oct. 28 approved a four-year extension of the
federal taxes owed on those years' profits. Existing law
"our semi-annual exercise in frustration and futility" in
not reach a $3.00 minimum wage until Jan. 1, 1978, after
temporary 10 per cent investment credit after turning
allowed corporate losses to be carried back against profits
debating debt ceiling extensions made necessary by federal
which their wages would be adjusted upwards by the same
down President Ford's proposal to make it permanent.
for three years or forward to offset income in five years.
budget requirements.
CPI formula.
Unless the 10 per cent limit was extended past 1976, the
By making the eight-year carryback option retroactive
In reporting HR 10049 on Oct. 20 (H Rept 94-566), the
The minimum wage for agricultural workers is $1.80,
credit would fall in 1977 to levels set by permanent law at 7
to losses suffered in years starting with 1970, moreover, the
Ways and Means Committee had attached provisions that
scheduled to reach $2.30 on Jan. 1, 1978. The current rate
per cent for most businesses and 4 per cent for utilities.
plan would have allowed some corporations to use more re-
would increase to $12-billion from $10-billion the amount of
for those covered under the 1974 amendments is $2.00,
The four-year extension would cut business taxes by
cent losses to cut taxes on profits earned back to 1962.
long-term federal bonds that the Treasury could issue with
scheduled to reach $2.30 on Jan. 1, 1977. (1974 amendments,
about $3.3-billion in 1977, $3.4-billion in 1978, $3.6-billion in
If Burke's proposal were enacted, the Treasury during
annual interest rates that exceed the statutory 4½ per cent
1974 Almanac p. 239)
1979 and $3.7-billion in 1980, according to staff estimates.
1976 would have to refund perhaps $1.4-billion in corporate
limit. The Treasury had requested that the existing $10-
Overtime compensation for those workers entitled to it
Adopted by a 25-9 vote, the committee's provision also
taxes, according to staff estimates.
billion authority to issue such bonds be increased to $20-
would be raised to two and a half times regular wages from
extended 1975 law increasing to $100,000 from $50,000 the
Although many smaller companies would be eligible,
billion.
one and a half times. In addition, the bill would phase out
limit on used property investment qualifying for the credit.
the staff estimated that the retroactive eight-year
the so-called "tip credit" that allowed an employer of a
Ullman initially proposed an extension through 1979,
carryback would provide tax benefits of $180-million for
person who received tips to pay only half the minimum
but the committee by a 16-10 vote adopted a proposal by
Chrysler Corp., $100-million for Lockheed Aircraft Corp.,
top-ranking Republican Herman T. Schneebeli (Pa.) to add
$100-million for the bankrupt W. T. Grant & Co. and $40-
House Hearings:
wage. The entire minimum wage would have to be paid one
year after the bill was enacted.
another year. In a 6-16 vote, on the other hand, the panel
million for Pan American Airways.
In a preliminary vote on Burke's proposal, the panel by
MINIMUM WAGE INCREASE
PRO: Labor
an 18-19 vote defeated Joseph E. Karth's (D Minn.) motion
Budget Resolution
to defer action and study the issue for six months. That 19-
Only a year and a half after Congress approved the last
Declaring that the minimum wage granted by the 1974
vote coalition fell apart, however, after the committee by a
minimum wage hike, the House Education and Labor Sub-
amendments was already outdated by inflation, Biemiller
The House Budget Committee Oct. 31 gave final
28-9 vote adopted William R. Cotter's (D Conn.) proposal to
committee on Labor Standards Oct. 22 began hearings on a
said the gap would only worsen with time. He pointed out
approval to a Second Concurrent Budget Resolution
limit the carryback to losses incurred starting in 1975.
bill (HR 10130) that would raise the minimum wage again,
that the average worker would have to make $2.42 an hour
calling for a $72-billion deficit in fiscal year 1976. The
Cotter's change excluded Lockheed and other potential
adjust it by a cost-of-living escalator and boost overtime
to meet the 1974 poverty level, defined by the Census
vote was 15-9, with Republicans voting solidly against
beneficiaries by eliminating use of losses back to 1970. The
pay to two and a half times regular pay.
Bureau as $5,038. Increases in the CPI in 1975 indicated
the measure, along with Democrat Elizabeth
panel thereupon voted 25-12 to reconsider Karth's motion
For most covered workers, the minimum wage
that the poverty level in August 1975 was now equivalent to
Holtzman (N.Y.). The committee approved without
to study the entire proposal for six months. With eight
proposed by the bill would jump to $3.00 an hour on Jan. 1,
an hourly wage of $2.67, he added.
change tentative recommendations adopted Oct. 24.
members who had opposed the study proposal in the earlier
1977. Under the minimum wage amendments enacted in
Furthermore, projections derived from Congressional
(Details, Weekly Report p. 2253)
18-19 vote switching sides, the panel then approved Karth's
April 1974, the current rate for most workers is $2.10 an
Budget Office estimates showed that the average worker
motion by a 26-11 margin.
hour, scheduled to increase to $2.30 an hour on Jan. 1, 1976.
would have to make between $3.05 and $3.20 in the fourth
PAGE 2304-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
COPYRIGHT 1975 CONGRESSIONAL QUARTERL INC.
Reproduction prohibited in whole or part except by editorial cliants
Reproduction prohibited whole part except by editorial clients
Nov. 1, 1975-PAGE 2305
Economic Affairs 3
Economic Affairs
4
quarter of 1977 just to stay even with the poverty level, he
House Passage:
continued. "No one who has lived through the galloping in-
Hearings:
flation of the last few years should seriously question the
PRODUCTIVITY COMMISSION
$3 minimum wage rate," he said.
SOARING BANKRUPTCIES SPUR OVERHAUL OF LAW
And because inflation, as measured by the CPI, is ex-
The House Oct. 28, by a 208-188 vote, passed and
pected to continue to increase for the next few years,
returned to the Senate a bill (S 2195) to establish a perma-
With a growing segment of U.S. society-public as
Judiciary Committees are in the midst of extended
Biemiller said an automatic escalator in the minimum
nent National Center for Productivity and Quality of Work-
well as private-unable to pay its bills, Congress has un-
hearings into improving the efficiency and fairness of the
wage rate "is essential if we are to maintain the purchasing
ing Life to stimulate productivity growth in both the
dertaken a major overhaul of the nation's creaky
bankruptcy system.
power of the minimum wage in the future."
private and public economic sectors. (Vote 478, p. 2334)
bankruptcy system.
"It is imperative," declared Senator Burdick as he
Biemiller endorsed the overtime pay increase "as a
The bill authorized $16,250,000 in fiscal 1976-78 for the
In fiscal 1975, 254,484 businesses and individuals filed
opened the hearings by his Judiciary Subcommittee on
tool, not to increase earnings, but to reduce unemployment
center, which would replace the temporary National Com-
under the federal Bankruptcy Act, an increase of 34 per
Improvements in Judicial Machinery, "that the provisions
by creating additional jobs." Such high pay would, in es-
mission on Productivity and Work Quality. The commis-
cent over the previous year, according to the Ad-
of the Bankruptcy Act strike a fine balance between the
sence, penalize employers who had regular employees per-
sion had been criticized for failing to fulfill its mandate.
ministrative Office of the U.S. Courts.
needs of the bankrupt debtor who seeks rehabilitation and
form overtime work rather than hiring additional people to
The center, to be run by a presidentially appointed
Nearly 12 of every 10,000 Americans declared
a fresh start and the creditor who looks to the Bankruptcy
absorb the work load, Biemiller reasoned, adding that the
board of directors, would be an independent agency within
bankruptcy, a per capita rate double that of the worst year
Court for equitable distribution of the bankrupt's estate."
original time and a half requirement had been devised for
the executive branch. It would have no regulatory powers
of the Great Depression. Sen. Quentin N. Burdick (D N.D.)
Bankruptcy relieves the debtor of all or part of what he
the same purpose.
but instead would only advise and comment on various
says that bankruptcy courts cancel almost $2-billion in
owes. In fiscal 1969, the last year for which such figures
Biemiller also asked the subcommittee to consider
means of increasing productivity. S2195 also would require
debts each year.
were published, creditors were able to recover 9.2 cents on
reducing the work week to 35 hours to stimulate job
each federal agency to assess how its own regulations,
Business bankruptcies, particularly, have increased in
the dollar from bankrupts who had any assets at all.
creation.
policies and programs affected productivity.
number and severity in the current recession economy.
The House made no changes in the bill as it was
When W. T. Grant Co. filed for bankruptcy Oct. 2 with a
Background
CON: Business
reported (H Rept 94-540) Oct. 8 by the House Banking
debt exceeding $1-billion, it was the second biggest business
Representatives of business associations were ada-
Currency and Housing Committee. The committee made
failure in the nation's history. The largest was the Penn
Bankruptcy law had its beginnings in Biblical times.
mant in their belief that the Dent bill would only hinder
only three minor changes in the bill as it was passed by the
Central Railroad, which went under in 1970 with a liability
Until this century, debtor laws favored creditors and
economic recovery. "With the economy beginning to
Senate Sept. 4. Those changes included raising the number
of more than $3.3-billion.
generally worked to discourage insolvency. Roman law, for
recover, the timing could not be worse for a bill which will
of directors to 27, from 25; assuring that five, rather than
Five of the 10 largest business bankruptcies in U.S.
example, allowed creditors literally to recover an arm and a
cause both increased inflation and deter entry-level
three, of the directors would be from industry and com-
history occurred within the past year. The number of
leg from a debtor by having him dismembered and his
employment," said Theodore A. Serrill, executive vice
merce; and barring the center from considering issues in-
business failures in fiscal 1975 was up more than 45 per
family sold off as slaves. After any left-over goods were
president of the National Newspaper Association.
cluded in collective bargaining agreements without the con-
cent over the previous year.
divided up, the merchant's trading bench would be
He and the other business representatives said an in-
sent of the parties to the agreement. (Senate passage,
Most dramatically illustrating the urgency of the
broken-bancarotta-thus giving rise to the modern term.
crease in the minimum wage would result in the so-called
Weekly Report, p. 1977; provisions, Weekly Report p. 1763)
situation is the plight of New York City, which faces almost
In the United States, the Constitution gives to
"ripple effect" where workers making more than the
During House floor debate Oct. 28, supporters of the
certain default as early as Nov. 17 on part of its $12-billion
Congress the power "to establish uniform laws on the sub-
minimum wage would demand increases to maintain
bill said the declining rate of productivity growth was one
debt. President Ford has rejected pleas for direct federal
ject of bankruptcies throughout the United States." But the
traditional wage differentials.
of the nation's least understood economic problems. They
aid to the city, but on Oct. 29 he proposed a plan that would
power was used only infrequently until this century.
Increased labor costs would result in increased prices,
also pointed out that the bill was strongly supported by
allow the city, should it default, to file under the
Federal laws were enacted in 1800, 1841 and 1867 to meet
leading inevitably to greater inflation, opponents claimed.
business, labor and the administration.
Bankruptcy Act. Existing law would make such a filing im-
specific economic crises, but each survived public criticism
Thompson of the Chamber and Serrill said the
But John M. Ashbrook (R Ohio) said there was nothing
possible. Ford's plan and others pending in Congress would
and political pressure only a few years before it was
automatic cost-of-living increases also would be in-
"mysterious about the decline. In large measure the
give city operating expenses priority over the claims of
repealed. In the intervals between federal laws, state
flationary. Serrill pointed out that the adjustment could
problem stems from government overregulation. How can
bondholders. (Ford plan, p. 2299; background, box, p. 2309)
bankruptcy laws were controlling, and the result was a
work an additional hardship on rural America since the
national productivity increase when the federal govern-
hodgepodge of conflicting measures that often dis-
poverty figures were based on urban living costs and the
ment is slowly strangling. businessmen to death?"
criminated against out-of-state creditors.
CPI was also weighted toward city prices.
Jack F. Kemp (R N.Y.) also opposed the bill, maintain-
Long-Term Revision
In 1898 another economic crisis precipitated the
To offset increased costs, Serrill and Thompson main-
ing that "productivity for the sake of productivity simply is
As compelling as the New York City crisis is, the atten-
Bankruptcy Act (Title XI, U.S. Code) that remains in force
tained, employers would lay off the least productive
going to run a very high risk of producing things that
tion in Congress is on long-term revision of federal
today. The law established a bankruptcy court under the
workers, generally those that are unskilled, the young and
people do not want."
bankruptcy law. Subcommittees of the Senate and House
federal district courts and framed the general procedure
the poor. Quoting economist Paul Samuelson, Thompson
In 1973, the House refused to authorize funds for the
for handling bankruptcy cases. The act has been amended
asked.' 'What good does it do a young black to know that if
temporary productivity commission but reversed itself in
more than 90 times. The most extensive revision was the
he could find a job, he would have to be paid [the minimum
1974 to authorize a continuation of the commission through
Chandler Act of 1938, which created most of the
wage], if the reason he cannot find a job is that no employer
fiscal 1975. (Background, 1974 Almanac p. 260)
bankruptcy options currently open to businesses and in-
is willing to pay him that rate?'
Bankruptcy Filling
dividuals.
Raising overtime pay also would be a hardship for
companies with only occasional demands for overtime
1935-75*
ECONOMY NOTES
200
Bankruptcy Growth
work, opponents suggested. Furthermore, Thompson said,
Since World War II, the number of bankruptcies-per-
the unemployed may not be equipped to take over the
sonal and business-has increased twentyfold, according to
overtime jobs of regular employees.
Social Security Taxes
a 1971 study by the Brookings Institution. Most by far are
Thompson also contended that increased overtime pay
personal bankruptcies, the report said, and the increase is
would only prove an incentive to regular employees to work
The Social Security Administration Oct. 29 announced
due in large part to tremendous growth in consumer credit.
overtime. "Penalty pay proposals are actually disguised
that the amount of wages subject to the Social Security
payroll tax would rise to $15,300 from $14,100 in 1976.
A result is that more Americans come into contact
plans for inflationary wage boosts to those already
with the bankruptcy court than all other federal courts
employed," he said.
That wage base increase, dictated by automatic ad-
Other business associations testifying were the
justments as average wage levels rise, would raise the max-
combined. The 220-judge bankruptcy system has broken
down under the burden, the report said, and hundreds of
American Retail Federation, the National Small Business
imum Social Security tax to $895.05, an increase of $70.20.
The existing tax rate would remain unchanged at 5.85 per
amendments and rule changes to deal with particular
Association and the American Hotel and Motel
0
problems have only crippled the system further.
Association.
cent.
'35
'40
'65
"The problems are so pervasive and so interlocked that
The wage base increase would raise about $2.1-billion
Pottern
-By Martha V. Gottron
partial solutions are not acceptable,' Brookings concluded.
in additional trust fund revenues, the agency estimated.
"The mess is too bad to tinker with. We need a new
PAGE 2306-Nov. 1, 1975
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Nov. 1, 1975-PAGE 2307
Economic Affairs 5
Economic Affairs 6
bankruptcy act, a new organizational structure, a new per-
sonnel system, a new method of financing and new records
and procedures." The study recommended that the
'Hello, Ranger, Texas? This Is Mayor Beame'
bankruptcy system be removed from the judiciary and
placed in a new federal administrative agency.
On Oct. 17, 1975, dozens of New York City
the Justice Department, Scalia also told the subcom-
Partially in response to that study and to the growing
bondholders lined up at city offices to cash in their
mittee at an Oct. 6 hearing that state approval should be
bankruptcy rate, Congress in 1970 created the Commission
securities. The city controller ordered a hold on the
required before a municipality could file under chapter
on the Bankruptcy Laws of the United States to study re-
usual Friday paychecks of the sanitation workers. A
IX. The pending bills require merely that there be no
vision of the 1898 law. In a 1973 final report that in many
state Supreme Court justice signed a writ affirming the
state prohibition against filing. "It seemed to us," said
ways mirrored the Brookings report, the commission
priority for payment of the city's limited resources to
Scalia, "that the matter was of such consequence for the
recommended creation of a U.S. Bankruptcy Administra-
creditors. And Mayor Abraham D. Beame (D) sum-
state as a whole that state consent to the particular
tion to handle most bankruptcy cases. Disputed cases
moned to Gracie Mansion a team of bankruptcy lawyers.
application should be required."
would continue to be decided in a scaled-down bankruptcy
The city was bracing itself for default on some $453-
But Rep. Herman Badillo (D N.Y.), a member of the
court.
Sen. Quentin N. Burdick
Rep. Don Edwards
million in debts and, probably, bankruptcy. A dramatic
subcommittee, characterized that proposal as a political
The proposal stirred wide controversy in the legal
Chairmen of panels studying bankruptcy
injection of new funding at the last minute by the
ploy to dump the New York City problem on Democratic
world and drew a particularly angry response from
United Federation of Teachers rescued the city for the
New York Governor Hugh L. Carey. "They're making it
bankruptcy judges, who had been left out of the com-
served by it." He said that an administrative agency under
time being. But the experience left almost everyone in
mission's membership. The National Conference of
deliberately political," he charged. "They're saying, 'Let
auditing and accounting controls would ensure "efficiency,
New York thinking about bankruptcy, and no one knows
Bankruptcy Judges issued its own proposal, similar in
Carey take the responsibility.' It brings up a political
economy, uniformity and integrity of administration."
just how it would be done.
hassle."
many respects, but recommending that the judicial system
Finally, supporters of the commission bill claim that
For guidance, New York can look only to cities such
Badillo, an unsuccessful candidate for mayor of
be maintained, with some administrative responsibilities
an administrative agency would reduce the time and cost of
as Medley and Manatee, Fla., Ranger, Texas, and
New York in 1973, has introduced bills (HR 9926, HR
being shifted from bankruptcy judges to an administrative
legal action incurred under the existing system. Some 90
Saluda, largest municipalities that have filed
9998) that would eliminate the creditor approval re-
branch within the judiciary. Both proposals recommended
per cent of the cases that now go through bankruptcy court
under the federal Bankruptcy Act in recent times. "The
quirement altogether. The approval requirements, an
that the bankruptcy court be made independent of the
could be handled administratively, argued Frank R.
municipal chapter has only been used 21 times in its en-
aide explained, work to the advantage of major creditors
federal district courts. The judges' bill (HR 32, S 235) and
Kennedy, a University of Michigan law professor and
tirety since 1954," noted a House Judiciary Committee
who can afford to participate in court proceedings, "but
the commission bill (HR 31, S 236) propose sweeping
former staff director of the bankruptcy commission. Most
aide, "and then mostly by gas districts, drainage dis-
the small man on the street is not on an equal footing."
changes in personal and commercial bankruptcy
bankrupts would not need a lawyer and the number of
tricts and irrigation districts.. There are no precedents
Badillo would leave it to the court to work out with
proceedings.
judges could be reduced by about two-thirds, Kennedy said.
for a city as large as New York, with as many creditors
the city a plan that would give "fair and equitable
as New York has and the lack of prospects for future
treatment" to all creditors. "It seems to me," he said,
Dispute Over Operation
CON: 'Another Bureaucracy'
financing that New York has."
"that when the public interest is at stake, the most
Although both bills propose important substantive
Bankruptcy judges agreed with the commission that
liberal and flexible guidelines are necessary."
changes in bankruptcy law, they disagree mainly over the
there should be some separation of judicial and ad-
Legal Obstacles
But there is a feeling in the subcommittee that
procedural issue of how to administer the system. Under
ministrative functions. But instead of separating those con-
The requirements of existing law, moreover, make
Badillo's plan actually would be less flexible than the
current law, the bankruptcy judge (who until 1970 was
flicting functions, they said, the commission would simply
it next to impossible for New York to file. Under chapter
other proposals. Under his bills, a subcommittee aide
called a referee) not only decides legal disputes in a
shift them into a bureaucracy that itself would be a nest of
IX of the federal Bankruptcy Act, a city in default can
said, "fair and equitable treatment" would mean that
bankruptcy case, he also appoints a trustee to administer
conflicting interest. "The reasons which motivated them to
halt legal actions and claims of creditors by filing a
each class of creditor must be paid in full before each
the disposal of a debtor's assets and their distribution to
suggest such an agency are violated by their own proposal,"
"debt readjustment" plan showing how it would pay off
lower priority class could be paid. Badillo, without in-
creditors. The judge also oversees that process and steps in
argued Conrad K. Cyr, a Maine bankruptcy judge. "It then
its obligations over an extended period. The filing of the
tending it, would deny fair treatment to the small
to settle disputes. Critics of this system contend that ex-
created an agency which itself would have far more con-
plan must have the prior assent of a majority of all
creditor, whose claim by law would have low priority,
posure to the details of a debtor's affairs prejudices a judge
flicting interests and duties than do the present bankruptcy
creditors, including bondholders (in New York's case,
the aide said. "He doesn't really realize the implications
and renders him incapable of settling disputes objectively.
courts." Such an agency, he added, would deny to debtors
thousands). And to be implemented, the terms of the
of what he's doing."
Thus, the commission recommended placing the ad-
and creditors the judicial forum they have now to air their
plan must be approved by two-thirds of all creditors.
The other bills also mandate fair and equitable
ministrative function in an independent agency. At the
disputes.
In practice, New York could not file under the
treatment, he said, but since they require creditor
hearings, commission spokesmen argued for the proposed
The judges contend that any problem of conflict could
bankruptcy law, since it would be impossible to even
approval as well, the phrase likely would be interpreted
agency and the judges argued against it.
be solved more readily by creating a separate ad-
identify, much less obtain approval from, a majority of
as it seems-a few payments to all, rather than all to a
ministrative arm within the judiciary to appoint trustees
all creditors. "Chapter IX fails in what is perhaps its
few.
PRO: 'Incompatible Duties'
and handle other administrative chores. "What we did not
principal purpose,' Antonin Scalia, assistant attorney
"Referees are engaged in incompatible duties when
want to do," said Judge W. Homer Drake of Georgia, "was
general, told the House Judiciary Subcommittee on Civil
Emergency Bill
they both supervise administration of estates and perform
to set up yet another bureaucracy in the executive branch."
and Constitutional Rights, "which is to provide a
Existing law allows a city in default to obtain a 60-
the judicial functions of deciding disputes between
breathing space, free from the disruptive effects of mul-
day stay of creditors' claims, plus 60 more at the discre-
litigants," Harold Marsh Jr., a California lawyer who
tiple lawsuits, within which a fair settlement can be
tion of the court, before it has to file a bankruptcy
headed the bankruptcy commission, argued before the Bur-
Personal Bankruptcy
worked out."
petition. "That would give us 120 days" to come up with
dick subcommittee in February. "The referee's involvement
Pending in Congress are two bankruptcy revision
remedial legislation, said the subcommittee aide.
in administration compromises his judicial independence,
A widely held perception of the proposed bankruptcy
bills (HR 31, HR 32) that, although written before the
Since the municipal bankruptcy proposals in com-
or at least the appearance of such independence."
legislation is that it is debtor-oriented, that any legislation
current crisis, propose changes that would facilitate
mittee are part of major legislation that will not reach
Administrative work also is a drain on a judge's time
will be cut from the same cloth as the Truth in Lending Act
bankruptcy proceedings by New York or any other ma-
the floor until well into 1976, the House subcommittee is
and thus an impediment to a smooth-flowing bankruptcy
of 1968 (PL 90-321) and the Fair Credit Reporting Act of
jor city.
fashioning emergency legislation to meet New York's
proceeding, Marsh contended.
1970 (PL 91-508).
Both bills would drop the prior assent requirement
needs and what some members see as the deficiencies of
Another criticism raised by the commission, heatedly
Commission members insist they were trying to
and reduce to a majority the percentage required for
Badillo's bills. The legislation will adhere closely to the
denied by judges, is that bankruptcy judges, trustees and
balance the rights of debtors and creditors, but they con-
final approval by creditors. And they would require
municipal provisions of the pending bills, but it probably
lawyers, by dint of their specialization in the field, con-
cede they had a special concern for the consumer. "There is
approval only by creditors actually voting on the plan,
will require approval of a plan by two-thirds of voting
stitute a "bankruptcy ring.'
evidence that Congress was concerned about the dis-
rather than by all of them.
creditors rather than a majority. The bill also will allow
"There is in many locales," said Marsh, "operation of
charge, the implementation of the 'fresh start' policy of the
The Ford administration has proposed requiring
a city to continue limited borrowing for operating ex-
the system for the apparent benefit of its functionaries
bankruptcy act," commission Director Kennedy told Bur-
approval by two-thirds of voting creditors. Speaking for
penses while working out a repayment plan.
rather than the debtor and creditors who are supposed to be
dick's subcommittee. "And the commission perceived this
PAGE 2308-Nov. 1, 1975
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Nov. 1, 1975-PAGE 2309
Economic Affairs 7
Economic Affairs 8
and gave early attention, and throughout, important atten-
The bills would add new categories of debts that could
the two chapters and promote efficiency of business filings,
Judge Homer Drake. Incumbent judges "may be un-
tion, to the problems of consumer bankruptcy."
not be discharged. To prevent credit sprees of debtors who
the commission bill essentially would leave it to the discre-
able to compete politically with a prospective candidate
Under the existing system, an individual con-
know they are going into bankruptcy, both would deny dis-
tion of the administrator whether a company should enter
who the political party that happened to be in power would
templating bankruptcy essentially has two choices:
charge of debts incurred deliberately within three months
reorganization or arrangement. Creditors would be given
like to have on the bench," Drake said.
He can opt for "straight bankruptcy" (chapters I
preceding the filing. And both would deny for five years
more say in how the proceeding should be handled.
Also at stake may be the futures of bankruptcy
through VII), under which all but his most personal assets
after a student leaves college discharge of debts on educa-
Bankruptcy judges, however, argue that the two
lawyers. The commission bill would enable most individual
are sold off and he is then discharged of all debts.
tion loans. College graduates increasingly have taken ad-
chapters were created for different purposes-chapter XI
debtors to get through bankruptcy by themselves. Eighty
Or he can choose a "wage-earner plan" (chapter XIII),
vantage of bankruptcy laws to wipe out what they owe on
for "mom and pop" stores and chapter X for cor-
per cent of bankruptcy cases could be handled without
under which a debtor with a regular income agrees to pay
college loans.
porations-and would not be compatible in one form.
lawyers, asserts Sen. Burdick, because they involve debtors
off all or part of his debts over an extended period in return
Repeated filings. Both bills would reduce to five
Separate provision should be made, they maintain, for
with no assets. "This has been a pet project of mine," he
for a stay of creditors' claims and court actions.
years, from the current six, the interval required between
bankrupt companies that could rehabilitate themselves
Proposed Changes
bankruptcy discharges. An "escape hatch" allows judges to
given an extension of time. "The ultimate result of such a
grant discharges in less than five years in hardship cases.
merger could be the demise of debtor rehabilitation under
Following are major changes in personal bankruptcy
the auspices of the bankruptcy court," argued Joe Lee, a
"The mess is too bad to tinker
proposed in the two bills:
Counseling. Both bills would allow bankruptcy of-
Business Bankruptcy
Kentucky bankruptcy judge and principal author of the
with. We need a new bankruptcy
judges' bill.
ficials to help the debtor fill out necessary filing forms. The
In most other major respects the bills treat business
act, a new organizational structure,
commission bill would enable the debtor to file an "open-
Although less numerous than personal bankruptcies,
ended" petition, in effect declaring bankruptcy to fend off
business bankruptcies are more complex and involve much
bankruptcy the same, but there are minor differences. The
a new personnel system, a new
larger debts and assets.
commission bill would enable the administrator to serve as
creditors but without having to choose a specific plan. The
method of financing and new
administrator then would advise him of the available
Businesses have several different options for filing un-
trustee in most-usually no-asset-straight bankruptcy
cases, but the judges would have the administrative direc-
records and procedures."
choices and the debtor would decide on a plan. Under the
der the act, which also contains special chapters to cover
bankruptcies by railroads (chapter VIII), real estate in-
tor appoint a trustee from a pool. A controversial provision
-Brookings Institution report, 1971
judges' bill, bankruptcy officials would help the debtor file,
but then refer him to private attorneys for further
terests (chapter XII) and maritime shipping (chapter XIV).
of the commission bill would allow one creditor to start in-
Generally, businesses under current law are offered
voluntary bankruptcy proceedings against a company,
counseling.
three choices for bankruptcy. They may declare straight
where it takes three now. And the commission bill would
Exemptions. Federal law currently defers to state
bankruptcy (chapters I through VII), under which all assets
relax existing standards for proof of bankruptcy required
laws on the amount of assets a bankrupt is allowed to keep.
While most allow him to keep such essentials as equity in
are auctioned off and distributed to creditors in order of
of creditors. But the proceeding could be stopped at a
said, "because I could see that the creditors were not gain-
legal priority. The Brookings study found that straight
preliminary hearing if the debtor company could show that
ing a thing and all that was happening was that some
his home and tools of his trade, state laws vary widely on
bankruptcy, the most frequently used, is chosen primarily
bankruptcy was unwarranted.
avaricious lawyers were having a pretty good deal."
the size of exemptions. In California, for example, a
by the small businessman "because it is the only federal
Both plans permit payment to company management
The judges' bill, on the other hand, sets up a lawyer
bankrupt may keep $20,000 equity in his home, but in New
for future services and both provide for delayed recovery of
referral system and virtually requires a debtor to seek legal
York he is allowed only $2,500, meaning almost always that
procedure that discharges him from personal liability for
losses by creditors, especially stockholders, if the company
advice. The judges argue that most debtors do not know
the home must be sold.
the obligations of the business."
makes a dramatic recovery.
enough about bankruptcy to know whether they should be
The commission bill would wipe out the state exemp-
filing in the first place. Before a debtor files, said Maine
Chapters X, XI
tions altogether and provide a uniform national exemption
Resistance
Judge Cyr, "He should consult briefly with his lawyer, his
covering home, clothing, jewelry, furniture, tools of trade
The two avenues regularly used by corporations are
own lawyer who at a very modest fee can give him the
and other items. The judges' bill would set a federal floor
"reorganization" (chapter X) and "debt arrangement"
The two bills, especially the Commission bill, are
necessary legal advice as to whether he should or not."
under exemptions but allow exemptions under state laws.
(chapter XI). Designed to give a company time to right
meeting strong resistance from creditors.
The maximum federal exemption would be $25,000.
itself, chapter XI allows a company (as W. T. Grant is try-
Specifically, they object to provisions allowing relief
Outlook
Reaffirmation. Current law allows creditors to
ing to do) to work out with its creditors an extended repay-
from debts obtained through false financial statements,
pressure a bankrupt for "reaffirmation" of a debt that has
ment plan that is supervised by the court. Three of five
prohibiting reaffirmations and permitting debtors to pay
Hearings on bankruptcy revision are well under way in
been discharged in bankruptcy. For instance, finance com-
such plans fail, according to the Brookings study, either
off only the market value, rather than the full loan amount,
both houses, but legislative action is not expected before
panies often offer a bankrupt new credit if he will reaffirm
because the proposed plan is rejected by creditors or
of goods they wish to keep.
the spring of 1976. Senator Burdick's subcommittee plans
his discharged debt to them.
because the debtor is unable to meet payments under his
Finance companies and other consumer lenders fear
to hold the final hearing Nov. 12 of a series that began in
Both bills would forbid a bankrupt to reaffirm a dis-
plan.
that the proposed U.S. Bankruptcy Administration would
February. Mark-up is scheduled for February and March of
charged debt and make any such reaffirmation null and
Chapter X is used much less often, primarily by
be a revolving door for irresponsible debtors. "When one
next year.
void. Both also would prohibit discriminatory credit treat-
chapter XI failures or by companies forced into bankruptcy
debtor does that [files with the proposed agency] and other
The House Judiciary Subcommittee on Civil and Con-
ment against a bankrupt for failure to pay a discharged
by creditors. The company is placed in the control of a
debtors find out how easy it is, we are satisfied that it is go-
stitutional Rights Sept. 8 began hearings that will consume
debt.
trustee who, under the supervision of the district court,
ing to bring about a bankruptcy stampede," complained
more than 40 days. The hearings are scheduled to conclude
Discharge. Under current law, certain debts may not
reorganizes it as he sees fit. Most such proceedings repre-
Linn K. Twinem, special counsel to the Beneficial Finance
in March, with mark-up planned for April and May.
be discharged. The debtor must pay those obligations even
sent a last-ditch effort to save the company and most, ac-
System. He warned that such a system would dry up the
Most observers expect major bankruptcy legislation to
after he is declared bankrupt. Included are certain back
cording to the Brookings report, fail.
availability of consumer loans from reputable lenders. "A
be enacted by the 94th Congress.
taxes, debts resulting from false financial statements,
Consolidation Issue
substantial proportion of consumers in the lower income
Although the chairmen of both subcommittees, Bur-
alimony and child support and a range of others.
brackets will be squeezed out of the legitimate consumer
dick and Rep. Don Edwards (D Calif.), were members of the
A particularly controversial feature of the commission
The major difference between the pending bills is that
credit field This would probably mean the return of the
bankruptcy commission, the compromise version that
bill would allow discharge of debts incurred through false
the commission bill would consolidate chapters X and XI
loan shark."
emerges is more likely to approach the judges' plan. Indeed,
financial statements on credit applications. The judges' bill
while the judges' bill would keep them separate. The dis-
Since it would eliminate much of the judicial process in
Burdick has said publicly he would keep the administrative
would not. Commissioners argue that bankrupts should not
pute, essentially, is over which approach would be more ef-
bankruptcy proceedings, the proposed U.S. Bankruptcy Ad-
function in the court system. With the Senate hearings
be held accountable for such statements, at least in
ficient. As a Senate aide characterized it: "It's easier to
ministration is seen by judges and lawyers as a threat to
nearly complete, subcommittee aide Robert E. Fiedler says
bankruptcy court, since they often are obtained fraudulent-
shop at one store than to shop at two. On the other hand,
their jobs. The commission bill would not only reduce their
the sentiment of witnesses generally has run against the
ly by unscrupulous lenders or made unknowingly by naive
maybe two specialty stores are better than one general
number, the judges argue, it would reduce their in-
commission plan. "Just about every witness we've had has
borrowers.
store."
dependence by taking the power to appoint judges away
had something bad to say about it," he said.
An anomaly of the current law is that it denies dis-
The commission depicted the typical chapter XI
from the judiciary and giving it to the President. "To insert
Aides on both sides say that Congress is not in a mood
charge to persons-often paupers-who-cannot pay the fil-
proceeding as a grab bag swarming with "bankruptcy ring"
this political factor into the system of selection of
to create a new agency of the size and cost proposed by the
ing fee (currently $50). Both bills would drop that re-
lawyers and dominated by major creditors, to the exclusion
bankruptcy judges will, we believe, be totally unfair to
commission.
quirement.
of less protected creditors. To smooth inequities between
those bankruptcy judges now sitting," observed Georgia
-By Ted Vaden
PAGE 2310-Nov. 1, 1975
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Reproduction prohibited in whole or part except by editorial clients
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Nov. 1, 1975-PAGE 2311
Agriculture
Health/Education/Welfare
Congress Reacts:
Reaction
BUSING FOES URGE CONSTITUTIONAL AMENDMENT
The agreement was received with satisfaction by grain
RUSSIAN GRAIN DEAL
exporters and labor unions. A long-term pact had been a
project of AFL-CIO President George Meany, who used a
Anti-busing forces in the Senate began trying to build
tion and Welfare (HEW) from using busing as a segrega-
Although it encountered little outright opposition, the
longshoremen's boycott in the summer of 1975 against
momentum for a constitutional amendment that would ban
tion remedy. While the House has opposed busing for
Ford administration's long-term agreement to sell grain to
loading grain to Russia as leverage to promote such an
court-ordered busing as a parade of senators, represen-
several years, the Senate action represented the first time a
the Soviet Union prompted some grumbling by House and
agreement. At least one-third of the grain will be carried at
tatives and officials involved with the controversial busing
majority of the Senate had taken an anti-busing stance.
Senate members concerned that Congress had been left out
high freight rates by Ainerican flagships manned by U.S.
plan in Louisville, Ky., told the Senate Judiciary Com-
(Background, Weekly Report p. 2227)
of the negotiations.
maritime workers.
mittee Oct. 28-29 that busing as a desegregation tool was
But while Congress may be able to prevent HEW from
Negotiated as an executive agreement, the deal does
But some farm groups denounced the deal as a sellout
not working.
using busing through legislation, it is unlikely that legisla-
not require congressional approval. But after the agree-
to
the unions and a betrayal of farmers by the ad-
"Forced busing is a hope that has failed, and failed
tion prohibiting the courts from ordering busing would be
ment was announced on Oct. 20, some support arose for a
ministration. They charged that the administration had
miserably," said Gov. Julian Carroll (D Ky.), supporting SJ
found constitutional-and most busing ultimately is
proposal by Sen. Clifford P. Case (R N.J.) that it be sub-
betrayed farmers by urging full production for this crop
Res 29, one of four proposed constitutional amendments
ordered by the courts. Thus, many anti-busing foes see a
mitted to the Senate in the form of a treaty. Other
year and then, through the embargo and other export con-
before the committee.
constitutional amendment as the only certain means of
proposals would require congressional approval of any such
trols, limiting access to world markets. The American
But two key witnesses refused to endorse an anti-
preventing busing.
long-term commodity agreement, regardless of its form.
Farm Bureau Federation also accused the administration
busing amendment. Although he said he believes
S J Res 29, offered by William V. Roth Jr. (R Del.)
of unprecedented interference with the world market
desegregation policies, including busing, are speeding
would amend the Constitution to bar the transportation of
Terms of Agreement
system.
resegregation, with blacks concentrated in inner cities and
students on the basis of race, color, national origin, creed or
The agreement commits the Soviet Union to purchase
Concern in Congress was not SO much over the terms of
whites grouping in the surrounding suburbs, sociologist
sex. Similar amendments (S J Res 60, S J Res 137) have
from the United States at least 6 million metric tons of corn
the plan as it was over the fact that Congress had been
James S. Coleman said he did not think an anti-busing
been offered by Dewey F. Bartlett (R Okla.) and John G.
and wheat a year for five crop years beginning Oct. 1, 1976.
given no role in the negotiations.
amendment was "a proper use of the Constitution."
Tower (R Texas), respectively. A far broader amendment,
The Soviets would be allowed to buy up to 8 million tons a
Almost immediately after the agreement was an-
And Louisville Mayor Harvey I. Sloane suggested that
offered by William Lloyd Scott (R Va.), would forbid the
year, but more than that would have to have U.S. govern-
nounced, Robert Dole (R Kan.) introduced in the Senate
a ban on busing could prompt the courts to force racial
assignment of students to schools on the basis of race and
ment approval. An escape clause permits the United States
Agriculture and Forestry Committee an amendment to the
quotas in housing sales or to assign students to schools on
would also prohibit public employees of federal, state and
to reduce the level of grain for sale if U.S. stocks fall below
International Development and Food Assistance Act (HR
the basis of family income in order to guarantee equal
local governments from being assigned to work at any par-
225 million tons in a year-an unlikely prospect.
9005) requiring that the agreement be submitted as a trea-
educational opportunity. As an alternative, Sloane
ticular job or location.
Announced in conjunction with the grain deal was a
ty or that it require congressional approval. The amend-
proposed establishment of a national judicial commission
To be enacted, a constitutional amendment must be
letter of intent by the Soviets to sell the United States 200,-
ment was rejected, but Committee Chairman Herman E.
to hear and monitor all desegregation cases.
passed by two-thirds of both the Senate and the House and
000 barrels per day of crude oil and other petroleum
Talmadge (D Ga.) agreed to insert a requirement that the
then ratified by three-fourths (38) of the state legislatures.
products over the same period. Although the figure
administration consult with Congress, "whenever possible,"
Proposed Amendments
represents only a small fraction of U.S. needs, administra-
on agricultural trade negotiations and report every 90 days
Some of the impetus for the hearings came from recent
Related Developments
tion officials said the deal would make the United States
on their progress.
Senate action barring the Department of Health, Educa-
The two-day Senate hearings climaxed several days
the largest importer of Russian oil in the western world
A separate proposal that the agreement be submitted
dominated by busing news. Tower Oct. 27 announced that
and serve as a signal to Arab oil producers that the United
as a treaty was offered by Case, ranking minority member
President Ford would not "at this time" support a con-
States could find other sources of foreign oil.
of the Senate Foreign Relations Committee. "It is an inter-
The letter of intent committed neither country to a
national agreement of major importance with implications
Ford on Busing Amendment
stitutional amendment prohibiting busing. Instead, Tower
said the President has ordered the Departments of Justice
specific agreement on oil sales, and the two sides were said
seriously affecting our foreign policy as well as domestic
and HEW to undertake an extensive review of the effects of
to be far apart on an agreed price for the oil. Secretary of
economy," Case said in a statement. "The nature, term
President Ford will not support "at this time" a
busing. (Box, this page)
Agriculture Earl L. Butz conceded that oil was included in
and the size of the agreement make it a national commit-
constitutional amendment barring school busing on the
The weekend before, at least 3,000 persons, mostly
the trade talks in part to pacify opponents of grain sales.
ment beyond the proper competence of the President act-
basis of race but instead has ordered the Departments
white and mostly from Louisville, descended on
"We needed something to neutralize the emotional reaction
ing alone." An aide said Case is considering introducing a
of Justice and Health, Education and Welfare to "ex-
Washington to demonstrate their opposition to court-
in the nation to any sale to the Soviets," he said. Other ad-
resolution requiring submission of the pact as a treaty.
tensively review all other alternatives to forced
ordered busing. The protest march to the Capitol Oct. 25
ministration officials told the House International
On Oct. 8, in anticipation of the grain deal, Sen. Adlai
busing," according to Sen. John G. Tower (R Texas).
was organized by local labor unions, which were repudiated
Relations Committee Oct. 28 that the negotiations were
E. Stevenson III (D III.) introduced a bill (S 2492) that
Tower, who has offered a constitutional amend-
by AFL-CIO President George Meany. In a statement,
continuing and predicted an accord in about two months.
would require the administration to submit to Congress
ment to ban busing, met with Ford for half an hour
Meany said the march was in violation of AFL-CIO policy
With the signing of the grain agreement, the ad-
any commodity agreement of a year's duration or more.
Oct. 27 in a session that Tower characterized as "frank
which endorsed busing as an acceptable remedy for
ministration lifted a two-month-old embargo on grain sales
The agreement would take effect unless disapproved by
and very constructive." Senate Minority Whip Robert
segregation.
to the Soviet Union. Butz indicated that Russia may need to
either house within 90 days.
P. Griffin (R Mich.), who also favors a constitutional
And in Boston, where opposition to busing had dis-
buy 7 million more tons of grain from the United States in
The House International Affairs Committee heard
amendment, sat in on the meeting for a brief time.
rupted schools for two years, some 7,000 marchers Oct. 27
addition to the 10.3 million already purchased this year.
testimony from American participants in the grain deal
According to Tower, Ford would not support a con-
protested busing while white students boycotted classes at
(Background, Weekly Report p. 2007)
negotiations at an "informational hearing" Oct. 28. Again
stitutional amendment because "the President didn't
South Boston High School. It was the first major
Administration officials estimated that total grain
members expressed irritation that they had not been con-
feel there has been an adequate test in the Supreme
demonstration in Boston since schools opened in late
sales to the Soviet Union in 1975 would increase retail food
sulted and criticized chief negotiator Charles W. Robinson,
Court to determine the validity of legislative or ad-
September.
prices in the United States by 1.5 per cent. Earlier es-
under secretary of state for economic affairs, for declining
ministrative remedies short of a constitutional
timates in a study by the Joint Economic Committee
a committee request that he testify on the agreement
amendment."
Case in Point: Louisville
released Sept. 29 indicated that the sale of 10 million tons
before it was concluded. "They did not like having their
Tower added that Ford did not oppose a con-
would cause a 1 per cent increase in food prices, while
consultation coming in after the fact," an aide said.
stitutional amendment outright and suggested he
The Senate hearings focused primarily on the ex-
purchases of 20 million tons of grain and 25 million bushels
might support such an amendment if the Supreme
perience of Louisville and surrounding Jefferson County,
of soybeans would boost prices by 2.4 per cent.
Court overturned legislative moves to end busing.
Ky., where a court-ordered desegregation plan entailing ex-
-By Ted Vaden
tensive busing was implemented in September. Most of the
PAGE 2312-Nov. 1, 1975
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COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
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Nov. 1, 1975-PAGE 2313
Health/Education/Welfare 3
Health/Education/Weltare 2
desegregation cases. At the trial hearing level, two commis-
The task force also found that almost two-thirds of all
witnesses testifying before the committee stressed that
longer-term effect is to increase both school and residential
sion judges would be appointed, along with one local judge
retired individuals and half of all retired couples relied on
busing was not only ineffective but actually counterproduc-
segregation."
appointed by the governor of the involved state, to hear the
Social Security benefits for half or more of their income.
tive.
Coleman acknowledged that his research had been
case. Once a desegregation plan was ordered, an ad-
Social Security provided 90 per cent or more of the total in-
"Forced busing is damaging educational quality, con-
criticized by some but added that "as more detailed
ministrative officer would be assigned to provide day-to-
come of 39 per cent of retired individuals and 15 per cent of
tributing to white flight, disrupting community and family
research is done and more precise estimates are obtained,
day supervision of the plan and to recommend
retired couples.
life, wasting important state and local resources and
the effect [of desegregation policies] will if anything be
modifications in it necessitated by changing housing
Because women generally work in lower-paying jobs
creating special problems of law enforcement," Gov.
found to be stronger rather than weaker than our estimates
patterns or population shifts.
than men do, work part-time more often and may leave the
Carroll told the committee.
show."
Appeals at the local level could be made to the full
labor market for a period to rear children, their Social
Detailing a long list of bad effects spawned by the
The Coleman study has been criticized for not giving
commission, and commission actions would be reviewable
Security benefits at retirement are considerably lower than
court-ordered busing, Carroll said teacher morale had
enough weight to other factors possibly contributing to
by the Supreme Court.
those earned by men. According to the task force, in June
declined, school discipline had worsened and truancy in-
white flight to the suburbs, such as movement of industry
1975 women retirees received an average monthly benefit of
creased, and extra-curricular activities had been severely
out of the city, increased segregation in housing, fear of
House Action
$180, compared to $225 for male retirees.
limited. Busing also had adversely affected police morale,
crime and generally deteriorating conditions of city life.
he said; many policemen's families had been harassed and
Coleman's latest report is somewhat ironic because a
No busing hearings have been scheduled by the House
The task force concluded that women are not
threatened. Business and industry had been similarly
Judiciary Committee. However, the House Democratic
shortchanged by the Social Security system. Because
report he prepared for the U.S. Office of Education in 1966,
Caucus is scheduled to consider Nov. 19 a resolution endors-
women tend to live longer, retire earlier and receive greater
affected, Carroll said, adding that worker attitudes and
which concluded that the educational achievement of low-
advantage from the weighted benefit formula that gives
employee confrontations had led to internal dissension, low
income students would be improved if they were placed in
ing a constitutional amendment barring busing and re-
productivity and heavy absenteeism. Some businesses were
questing the Democratic members of the Judiciary Com-
low-income retirees a greater share of the benefits than
classes with children from more affluent backgrounds, was
reporting difficulty in attracting professionals to Louisville.
used by many courts as a justification for desegregation
mittee to report such an amendment out of committee
they had actually earned, benefits paid on the earnings of
orders.
within 30 days.
women are actually greater than those paid on men's
Busing was even having an adverse affect on the local
United Way campaign, Carroll said. Rumors that some of
Coleman said his opposition to a constitutional amend-
The anti-busing resolution was placed on the agenda
earnings.
the funds would be donated to pro-busing groups have
ment barring busing left him in an unsatisfactory position.
through the petition procedure, which requires 50 signers.
Nevertheless, the group made several recommen-
"It leaves me with only the hope that the courts will
The petition was circulated by Texas Democrats Dale
dations to eliminate discrimination on the basis of sex from
served to reduce contributions by at least $500,000 and the
themselves see the incorrectness of the precedent that has
Milford and Olin E. Teague; 51 Democrats signed the
the Social Security law and to make other changes that
loss could reach as high as $1.5-million, he said.
petition.
would compensate women and their dependents for sex
Finally, the desegregation plan had cost the state at
evolved," he said.
least $3-million and was expected to cost another $1-million
-By Martha V. Gottron
differences in work opportunities and patterns.
Recommendations that would correct sex dis-
before the year was over. That did not count costs incurred
Judicial Restraint
by Louisville or Jefferson County, Carroll added.
Senate Hearings:
crimination, against both men and women, included:
But it was belief that the courts would not exercise
Kentucky's two senators and the two representatives
Removal of the test that requires a husband or
restraint on the busing issue that caused many of the
from the Louisville area also endorsed a constitutional
witnesses to support a constitutional amendment.
WOMEN AND SOCIAL SECURITY
widower to prove that at least half his support came from
amendment. People consider busing "nothing less than
his wife in order to receive a benefit based on her earnings.
"The judicial branch stands alone in its support of bus-
damnable dictatorship to be told where their children can
A wife or widow is automatically presumed to be dependent
ing and has effectively asserted its will over this nation,"
Women "face discrimination in pay levels; there is no
go to school and where they cannot go, by men who have
on her husband for support and is not required to prove
said Tower.
doubt about that, and there is no doubt that this pattern
not even been elected to office and who can't be thrown out
dependency.
Roth agreed. "Congress has expressed the will of the
affects the level of their Social Security benefits," said
Provision of benefits to divorced husbands or
at the polls," declared Rep. M. G. (Gene) Snyder (R Ky.),
people on the busing issue over and over again in
Frank Church (D Idaho), chairman of the Senate Special
representing Jefferson County.
widowers. Existing law pays benefits only to divorced wives
legislation only to have its efforts thwarted by a federal
Committee on Aging, as he opened two days of hearings
Sen. Wendell H. Ford (D Ky.), who was governor of the
and widows who were married for at least 20 years.
judiciary that does not know the meaning of judicial
Oct. 22 on a task force report recommending ways to make
state before his election to the Senate in 1974, said the
Payment of father's benefits to widowers, whatever
restraint," Roth said.
the retirement system more equitable for women.
primary question "should be whether busing improves the
their age, who care for minor children. Existing law pays
Witnesses before the committee agreed that women
attainment of the student." He then cited several studies
benefits to widows caring for dependent children but not to
Legislative Proposals
deserve more equitable treatment under Social Security
which concluded that desegregation had led to little or no
fathers. The Supreme Court ruled in March that failure to
improvement in educational achievement.
In addition to sponsoring a constitutional amendment,
laws, but differed widely in their reactions to the task force
pay fathers such benefits was unconstitutional.
Roth has made two legislative proposals that would
report's recommendations.
Sen. Walter (Dee) Huddleston (D Ky.) also supported a
(Weinberger v. Wiesenfeld, Weekly Report p. 700)
eliminate or limit busing. The first (S J Res 119) would es-
Tish Sommers, coordinator of the National Organiza-
constitutional amendment but said such an amendment
The panel made several other recommendations that
tablish a commission to study the effects of busing and
tion for Women's (NOW) task force on older women, told
"should not represent a retreat in any sense from our
would liberalize benefits for both men and women, in-
national commitment to integrate schools or guarantee
determine whether a constitutional amendment should be
the committee she was "sorely disappointed" in several of
cluding:
enacted. The proposal called for a moratorium on busing
the recommendations and urged even broader changes.
equality of education for all students regardless of race,
Elimination of the existing work test, which generally
while the study was being conducted.
At the other end of the scale, James B. Cardwell, com-
creed, color or national origin." Huddleston said a ban on
required that a person must have worked 20 out of the last
Roth's second proposal would remove jurisdiction over
missioner of the Social Security Administration, cautioned
busing "would merely require the courts and the school dis-
40
quarters to qualify for disability benefits.
tricts to achieve the necessary goals through other less dis-
busing from lower federal courts and place it in the hands
Oct. 23 that many of the recommendations would have
Payment of benefits to disabled widows and widowers
ruptive and more productive means."
of state courts with direct appeal to the Supreme Court.
serious financial implications for an already financially
and disabled surviving divorced wives and husbands
Because the state courts are closer to the people (often
shaky system.
Agreeing with Huddleston, Romano L. Mazzoli (D Ky.)
without regard to age. Existing law allows payment at age
cautioned that alternatives could be expensive, disruptive
judges are elected), they are more likely to look for other
50 or after.
and painful. "But there is no easy way to guarantee rights
solutions besides busing, Roth said. The proposal has been
Task Force Report
Payment of benefits to disabled spouses of Social
to one group where another group is involved," he said.
offered as an amendment to another bill (S 287) increasing
Security recipients without regard to age. Existing law
the number of federal judges.
"A retirement income crisis now affects millions of
allows payment only at age 62 or over.
Coleman Testimony
aged and aging women, and threatens to engulf many more.
Inclusion of close relatives living in the home in the
Coleman, a sociologist at the University of Chicago,
Judicial Commission
The likelihood of being poor is considerably greater for
definition of dependents.
backed up complaints that busing was counterproductive.
The other major proposal put to the committee was
elderly females than for aged males," the six-member task
Reduction to 15 years, from 20 years, as the length of
He told the committee he had concluded from recent
Sloane's suggestion to establish a national judicial commis-
force reported in its working paper prepared for the Com-
time a divorced person needed to be married in order to
research that white flight to the suburbs had been
sion with jurisdiction over all school desegregation cases.
mittee on Aging.
qualify for benefits under the former spouse's earnings.
prompted and hastened by desegregation policies. "In hind-
Sloane said such a remedy could be implemented more
The panel found that more than two out of three poor
An increase in the number of years of low or zero earn-
sight 10 or 20 years hence, these policies designed to
quickly than a constitutional amendment and would be
people 65 and older are women. In 1974, 18.3 per cent of all
ings that a worker may drop out of the computation for
desegregate schools may well be seen as highly segregative
more effective.
women 65 and over had incomes below the poverty level,
benefits. The computation counts the earnings in each year
policies instead, because while their direct and immediate
The commission would be appointed by the President
compared to 11.8 per cent of all men in the same age
since 1950 (or age 21, if later) up to age 62, death or dis-
effect is to reduce school segregation, their indirect and
and would oversee all existing, pending and future school
category, the report said.
ability, minus five years in which earnings were lowest or
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
PAGE 2314-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
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Nov. 1, 1975-PAGE 2315
Reproduction prohibited in whole part except by editorial clients
Health/Education/Weltare 4
Health/Education/Weltare 5
non-existent. The panel said an increase in the number of
Hearings
balked at the recommendation to eliminate the dependency
regulations, issued in July by the Department of Health,
drop-out years would be extremely beneficial to mothers
test for husbands and widowers. He estimated that would
Education and Welfare, eventually would limit federal
who leave the labor market to care for children.
Failure of the task force to recommend a homemaker's
cost $500-million in the first year of payment.
payments for certain types of drugs to the lowest cost at
benefit and its recommendation regarding working couples
Cardwell said the recommendation would produce a
which they were generally available.
Ball Proposal
drew the most comment during the two-day hearings.
windfall for a substantial number of the half million men
The association, which represents most manufacturers
A key task force recommendation would adjust the
"Women deserve a pension for unpaid work in the
that would become eligible for benefits-those who had
of prescription drugs, had strongly opposed the regulations
benefit formula to increase the benefit paid to a retired
home just as men do who work in the marketplace,"
earned pensions working in employment not covered by
since they were first proposed in late 1973. It contended
worker by one-eighth and reduce the amount paid to a
declared Sommers of NOW.
Social Security, such as government service. Such a wind-
that the federal government could not guarantee that
dependent spouse to one-third, from one-half, of the benefit
Rep. Bella S. Abzug (D N.Y.) agreed. Failure to give
fall, he added, was currently enjoyed by many women.
lower-priced drugs prescribed by their generic chemical
paid to the spouse who worked. Couples would still receive
homemakers their own Social Security accounts "not only
But the other alternative-requiring proof of actual
names were as safe as brand-name equivalents. The
150 per cent of what an individual retiree with the same
reinforces the stereotype of the dependent wife but also
dependency on the earnings of the other spouse-would be
manufacturers' suit contended that the regulations would
earnings would receive, but single workers and widows
denigrates the important contribution of the homemaker to
costly and complex to administer, he said.
interfere illegally with medical practice and, in effect, fix
would receive higher benefits.
her family, her husband's career and to society," she said.
Cardwell said the Ball proposal recommended by the
drug prices.
Originally proposed by former Social Security Com-
Abzug cited a study by the Chase Manhattan Bank that
task force would result in a first-year cost of $9-billion.
The American Medical Association also had challenged
missioner Robert M. Ball, the formula adjustment would
estimated the value of the average housewife's services at
"While the task force would correct most of the gender-
the legality of the regulations. (Background, Weekly
also narrow the gap between couples, where both worked
$159.34 a week, more than the average salary of women
based anomalies in the Act...they also go beyond that and
Report p. 1671)
and those where only one,spouse worked. Under the present
who held paying jobs. The bank placed the total value of all
tend to liberalize benefits and/or coverage," Cardwell said.
system, a couple whose combined income equaled that of a
household work performed by American wives at $250-
"In other words, many of the cost implications of the task
Health Maintenance Organizations
couple where only the husband worked could receive the
billion a year.
force recommendations could be either constrained or
Almost two years after Congress approved the idea,
same or lower benefit upon retirement. That has led to com-
Abzug has introduced legislation in previous
eliminated by restricting the changes to those literally re-
HEW Oct. 28 issued final regulations that would require
plaints that working wives who have paid into the system
Congresses which would extend Social Security coverage to
quired to eliminate distinctions between men and women
employers to give their employees the option of joining a
never receive anything in return. The task force said such
homemakers, whom she defines as "any person between 18
Frankly, at this moment, while we are working on the
health maintenance organization (HMO) if they offered a
complaints ignored the fact that working wives had dis-
and 65 who performs household services for other persons,
matter of women and Social Security, we must be at least
traditional health insurance plan. HMOs provide a range of
ability and survivors' insurance during their working years
one of whom is a wage earner." Abzug said she plans to re-
equally concerned about the system's capacity to maintain
health services for members who pay set monthly fees in
and that they could retire and receive benefits on their own
introduce the legislation this year but has not yet decided
its financial integrity."
advance instead of bills for each service provided.
earnings while their husbands continued to work.
whether to finance the additional costs through general
The trustees of the Social Security system predicted in
The requirement would apply to employers of at least
Treasury revenues, as she had proposed in previous years,
May that the costs of the program would exceed its income
25 workers covered by federal minimum wage laws. If a
Homemakers
or through contributions from the wage earners and their
in every year for the next 75 years unless there were ad-
federally approved HMO asked to be included in an
In a move that disappointed many of the women's
employers. The latter concept, Abzug said, "is based on the
ditional financing and benefit level modifications. (Weekly
employer's health plan, the employer would have to offer
organizations that testified, the task force made no
recognition that the working spouse and his employer
Report p. 1033)
this option whenever existing collective bargaining or
recommendations on the issue of whether homemaker ser-
benefit most directly from the services of the homemaker."
In other testimony, Ball and Arthur S. Flemming,
health insurance contracts came up for renewal. The
Sommers also urged passage of a bill (S 2541) in-
chairman of the U.S. Commission on Civil Rights, endorsed
vices performed by a wife should in some way be factored
regulations, which take effect Nov. 28, will require most
into the Social Security system. "While not minimizing the
troduced by Sen. John V. Tunney (D Calif.) that would set
the task force report.
employers to offer the HMO option before the end of 1976.
up model programs to assist widows, divorced women and
-By Martha V. Gottron
Employers would contribute no more to the cost of an HMO
other "displaced" homemakers to re-enter the labor market.
plan than they did to existing health insurance plans.
The programs would provide job training and referral ser-
As expected, the regulations resolved a dispute over
"Women deserve a pension for
vices among other aids. A similar bill (HR 7003) has been
introduced in the House by Yvonne Brathwaite Burke (D
HEW NOTES
the role of collective bargaining agents in the HMO selec-
unpaid work in the home just as
tion process in favor of organized labor's position. The
Calif.).
original regulations would have required an employer to
men do who work in the market-
offer individual employees the option of joining a selected
place.'
Working Couples
Unemployed Fathers
HMO even if the union that bargained for them had turned
-Tish Sommers, National
Both Abzug and former Rep. Martha W. Griffiths (D
The Department of Health, Education and Welfare
it down. The final regulations made it clear that a union
Organization for Women
Mich., 1955-75) urged that working couples be allowed to
(HEW) Oct. 29 issued a final regulation that would give un-
could turn down an HMO option on behalf of all its
combine their salaries for purposes of computing the Social
employed fathers of dependent children the choice between
members. A dispute between HEW and the Department of
Security benefit in order to receive the maximum benefit
receiving unemployment compensation or public assistance
Labor over the original requirement had delayed publica-
allowable. Griffiths, who is chairperson of the committee
under the Aid to Families with Dependent Children
tion of the final rules. (Background, Weekly Report p.
economic value of the homemaker's services, we question
on homemakers for the National Commission on Obser-
(AFDC) program. The regulation was necessary to conform
1774)
the appropriateness of using Social Security-an earnings
vance of International Women's Year, said the situation in
with a June 1975 Supreme Court ruling. (Weinberger v.
replacement system- provide benefits where no earnings
which a working couple could receive a lower benefit than a
Glodgett, Weekly Report p. 1233)
Test Scores
loss has occurred," the panel wrote.
couple where only one partner worked, even though both
The regulation was expected to affect 15 states where
Sidney P. Marland, president of the College Entrance
Thorny questions that would have to be answered
couples had the same income, is "the greatest inequity" of
AFDC payments were higher than unemployment compen-
Examination Board, announced Oct. 28 that the board had
before any recommendation could be made by the com-
the system.
sation payments. Only 25 states made AFDC payments to
established a special panel to investigate why its scholastic
mittee, the task force said, were: "If a monetary value is to
In recommending the Ball formula readjustment, the
families which were poverty-stricken because the father
aptitude test (SAT) scores had declined.
be placed on homemaker services, how should the value be
task force specifically rejected the alternative of allowing
was unemployed.
The scores have declined every year for the last 12
determined? Who pays the cost? What if the homemaker is
working couples to receive benefits based on their own
HEW said it expected an additional 187,000 families to
years. The decline among 1975 high school graduates was
also a wage-earner? What if husband and wife share
earnings as well as those of their spouses. The panel said
seek AFDC aid because of the new ruling, at a cost to the
10 points for verbal and 8 points for mathematical skills.
homemaking tasks? And when does the homemaker retire?"
such a solution would only heighten the disparity between
government of $773-million a year. More than 11 million
Marland said the panel "will conduct a detailed and in-
Finally, the task force urged improvements in the
married and single workers, as well as make some couples
adults and children were receiving AFDC payments as of
dependent study of issues related to the score decline which
Supplemental Security Income program, designed to assist
eligible for four benefits-two retired worker's and two
June 30. (Weekly Report p. 2268)
go to the heart of the questions being asked about the quali-
the poor aged, blind and disabled. Specifically, it asked for a
spouse's benefits.
ty of American education." The panel will examine the
benefit hike to keep recipients out of poverty.
Low-Cost Drugs
nature of the tests themselves as well as the effects of
"Our Social Security system, while in no sense the
Financial Implications
The Pharmaceutical Manufacturers Association Oct.
busing, lack of discipline, television viewing and reduced
cause of less adequate retirement protection for women,
Although he agreed that most of the areas where the
20 filed a court suit challenging the legality of federal
revenues. W. Willard Wirtz, former labor secretary and
can do more than it now does to adapt its protection to the
Social Security system treated men differently from
regulations designed to hold down the cost of prescription
president of the National Manpower Institute, will chair
changing needs of women," the panel concluded.
women needed to be corrected, Commissioner Cardwell
drugs in the Medicare and Medicaid programs. The
the panel, Marland said.
PAGE 2316-Nov. 1, 1975
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COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
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Reproduction prohibited whole or part except by editorial clients
Nov. 1, 1975-PAGE 2317
Inside Congress
Energy and Environment
House Action:
the construction of more nuclear power plants than were
FIRST SESSION ADJOURNMENT
necessary.
TVA BONDING AUTHORITY
In remarks on the Senate floor Oct. 28, Majority Leader
Proxmire Voting Record
Floor Action
Mike Mansfield (D Mont.) announced that Dec. 12 had been
Sen. William Proxmire (D Wis.) continued to build
The House by voice vote Oct. 23 approved and sent to
James H. (Jimmy) Quillen (R Tenn.) spoke in support
set as the target date for adjournment of the first session of
up his lead as the Senate's champion vote-caster as he
the Senate a bill (HR 9472) increasing to $15-billion from
of the bill, expressing the hope that TVA would now cease
the 94th Congress. He also announced the recesses for the
cast Oct. 9 his 4,000th consecutive vote on the Senate
$5-billion the amount of outstanding revenue bonds which
to increase its customer rates, which he described as
second session, which is tentatively scheduled to convene
floor.
the Tennessee Valley Authority (TVA) could issue to
"unwarranted, inexcusable and exorbitant." The committee
Jan. 6, 1976, but could be delayed if the first session con-
report showed that TVA rates had risen almost 134 per cent
tinues beyond Dec. 12.
He became the senator with the highest vote
finance expansion of its power system.
In addition, HR 9472 as approved changed from semi-
from 1967 until early 1975, but were still far below the
If Congress adjourns by Mansfield's target date, it
attendance record almost two years ago when he sur-
annual to annual the timing of payments by TVA to the
national average. For the 12 months ending June 1975, the
would be the earliest termination of a first session of
passed former Sen. Margaret Chase Smith's (R Maine
1949-73) record of just under 3,000 votes. Proxmire cast
federal Treasury to repay the original federal investment
average TVA rate to customers was 1.69 cents per kilowatt-
Congress since 1965, when the first session of the 89th
his 3,000th vote on Dec. 19, 1973.
in its facilities, plus interest.
hour compared to a national average of 2.54 cents per
Congress left Washington Oct. 23. (Box on length of con-
In his bid to continue his record, Proxmire has not
TVA was created by Congress in 1933. Congress in 1959
kilowatt-hour.
gressional sessions, adjournment dates, Weekly Report p.
authorized TVA to issue up to $750-million in bonds to
missed a Senate floor vote in nine years, according to
Jones explained the committee decision to recommend
1869)
his staff aides. Mrs. Smith voted for more than 12
finance power plants; in 1966, this ceiling was raised to
the $10-billion increase, saying that any smaller increase
The 1976 recesses are as follows:
years without a miss between 1956 and 1968 in an era
$1.75-billion; in 1970 it was increased again to $5-billion. By
would require TVA to seek additional authorization within
Lincoln's Birthday-From conclusion of business
Dec. 31, 1975, TVA bonds and notes outstanding were ex-
when roll-call votes were less frequent.
the next few years. If the demand for power should grow
Friday, Feb. 6, until Monday, Feb. 16.
pected to exceed $4-billion, and other commitments were
less than expected, he said, "the only result would be that
Easter-From conclusion of business Wednesday,
anticipated to have consumed the remaining unobligated
TVA would slow down its construction program and its
April 14, until Monday, April 26.
Raise Returned:
borrowing authority. Without the increase in the bond
issuance of bonds and the authorization would last
Memorial Day-From conclusion of business Friday,
ceiling, only the most critical construction and procure-
somewhat longer."
May 28, until Wednesday, June 2.
CONGRESSIONAL PAY
ment would continue, TVA officials said, severely dis-
July 4th holiday and Democratic National Conven-
rupting TVA's capability to supply its customers with
tion-From conclusion of business Friday, July 2, until
needed power in the future.
The $10-billion increase in bonding authority would
Clean Air
Monday, July 19.
At least 10 House members do not plan to keep the pay
Republican National Convention-From conclusion of
raise Congress voted itself July 30. The salary boost took
allow the generation of funds to complete building of six
effect Oct. 1 after the House and Senate voted to uphold
business Wednesday, Aug. 11, until Monday, Aug. 23.
power plants already underway-including four nuclear
The House Health and Environment Subcom-
President Ford's 5 per cent recommendation. (House ac-
Labor Day-From conclusion of business Wednesday,
plants-and would allow the construction of three other
mittee headed by Paul G. Rogers (D Fla.) wound up its
Sept. 1, until Tuesday, Sept. 7.
tion, Weekly Report p. 2126; Senate action, p. 1983; pay
nuclear plants. Because the TVA pays the principal and in-
work on amendments to the 1970 Clean Air Act Oct. 28,
raise legislation, p. 1801)
Adjournment Sine Die-Saturday, Oct. 2.
terest on these bonds from its revenues from sale of electric
voting 11-3 to send a clean bill to the full Interstate and
The members are Bob Carr (D Mich.), Charles E.
power, the increase in bonding authority has no effect on
Foreign Commerce Committee. (Details will be carried
Bennett (D Fla.), Jack Edwards (R Ala.), Martha Keys (D
in a subsequent Weekly Report.)
1975 Recesses
the federal government's debt.
Kan.), Larry Pressler (R S.D.), David W. Evans (D Ind.),
The Senate Public Works Subcommittee on En-
In announcing the 1976 recesses, Sen. Mike Mansfield
Floyd J. Fithian (D Ind.), Andrew J. Maguire (D N.J.),
Committee Action
vironmental Pollution, chaired by Edmund S. Muskie
(D Mont.) praised the over-all work record of the first ses-
Andrew Jacobs Jr. (D Ind.) and Phil Sharp (D Ind.).
Introduced by Robert E. Jones (D Ala.), chairman of
(D Maine), will continue markup and possibly take a
sion despite "a liberal schedule of nonlegislative days... It
Several of the members plan to remit their salary in-
the House Public Works Committee, HR 9472 was reported
final vote Nov. 3 on its version of the amendments.
is interesting to note that as of October 23 the Senate had
crease to the Treasury. The others said they planned to use
from the committee Sept. 24 (H Rept 94-510). The report
Final congressional action on the complex legisla-
been in session more hours than in the previous year on the
it to establish scholarship funds or provide additional con-
pointed out that TVA supplied electric power to an area of
tion is still a long way off. The measures deal with such
stituent services.
same date. In 1974, the Senate was in session 146 days for
80,000 square miles, containing 7 million people, as well as
controversial issues as deadlines for auto emission con-
908 hours, whereas in 1975 we have also been in session 146
Technically, every member of Congress must accept
supplying power directly to 50 industries and 11 federal in-
trols, air pollution requirements for coal-burning in-
days, for over 930 hours."
his full raise. The comptroller general of the United States
stallations, including the gaseous diffusion plants of the
dustrial plants and limits on traffic in congested cities.
He also said attendance in the Senate during recorded
ruled in 1925 that members violate federal law by not
Energy Research and Development Administration at Oak
They can be expected to consume several weeks of full
votes had been the highest (89.4 per cent) since 1964. As of
accepting their full pay. However, after receiving the
Ridge, Tenn. and Paducah, Ky.
committee consideration, at least.
Oct. 29, the Senate had taken 457 votes, about the same
salary, they may return any portion to the Treasury.
Interconnected with neighboring power systems, the
On the House side, where committee leaders are
number as taken by this date last year.
The October pay raise increased the salaries of
TVA system had significance for the entire nation,
involved in a conference on the energy policy bill (S
members of Congress from $42,500 to $44,625 a year.
I
But Sen. Hugh Scott (R Pa.) said he found little com-
emphasized the report. Since power could be exchanged
622), an aide predicted that the committee probably
fort in a good congressional work record if it failed to
between interconnected systems, "in a time of power
would not get to the clean air bill before the week of
produce much-needed energy legislation. He echoed
emergency, operation of the TVA power system could have
Nov. 10. In the Senate, Chairman Jennings Randolph
arguments voiced before the start of Congress' month-long
a definite impact on power supply conditions from the
(D W.Va.) of the Public Works Committee has said he
INSIDE CONGRESS NOTES
August recess: "There are 64 days left in 1975. The $64
Great Lakes to the Gulf of Mexico and from New England
intends to wait a month before taking up the subcom-
question is when will Congress pass an energy bill that can
to Oklahoma and Texas." Furthermore, the report noted
mittee's bill, to allow time for members and other in-
become law?"
Montoya Taxes
that TVA power was produced almost exclusively from
terested parties to digest the legislation.
"It does look as if Congress would rather have no ac-
If Congress does manage to finish a clean air bill
Sen. Joseph M. Montoya (D N.M.) Oct. 20 denied
coal, reducing the per capita consumption of oil and natural
tion than some action, and it is regrettable. The record of
this year, the legislation may still face a presidential
allegations that senior Internal Revenue Service (IRS) of-
gas in the region far below national averages.
Congress is deplorable in this regard. We are meeting
ficials had blocked audits of his taxes. Montoya, who chairs
The only opposition to the bill was voiced by en-
veto. The Ford administration, citing economic and
oftener and working harder, but we are not getting the ma-
the Senate appropriations subcommittee that handles IRS
vironmental groups at a committee hearing in September.
energy problems, has asked for delays in clean air
jor jobs done in the energy field. I regret it, and I will not be
funding, said, "I never asked for special treatment from the
Representatives of the East Tennessee Energy Group and
standards of a magnitude that Congress does not seem
a party to that performance." (Earlier comments on energy
IRS, and as far as I know I have never received special
the Vanderbilt University Energy Study Group testified
likely to approve. (Weekly Report p. 2047, 1169)
legislation and recesses, Weekly Report p. 1888)
treatment."
that the large expansion in bonding authority might lead to
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
PAGE 2318-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
Reproduction prohibited whole in part except by editorial clients
Nov. 1, 1975-PAGE 2319
Reproduction prohibited in whole in part except by editorial clients
Inside Congress 2
Quoting four "highly reliable sources," The Washington
(R Kan.), EASTLAND (D Miss.), GARN (R Utah), HANSEN (R
Post Oct. 19 had reported that audits and investigations of
Wyo.), HARTKE (D Ind.), HELMS (R N.C.), MCCLELLAN (D
Ark.), MCCLURE (R Idaho), MONTOYA (D N.M.), SCOTT (R
Consumer Affairs
Montoya's tax returns had been strongly recommended by
Va.), STAFFORD (R Vt.), STENNIS (D Miss.), RANDOLPH (D
IRS officials. It said normal IRS procedures called for
W.Va.), TALMADGE (D Ga.) and THURMOND (R S.C.).-
audits in the case of a taxpayer like Montoya but that
1/23/75-Senate Judiciary reported March 12, 1975 (S Rept 94-
audits had been blocked by IRS Commissioner Donald C.
34). Senate passed March 13. House Post Office and Civil Service
reported Sept. 3 (H Rept 94-451). House passed Sept. 9. President
Alexander and other top officials.
signed Sept. 18, 1975.
HOUSE VOTES CURBS ON CONSUMER COMMISSION
The Post said Montoya's tax returns had not been
audited during the past 25 years, even though he became a
PL 94-98 (S 907)-Authorize the Smithsonian Institution to plan museum
millionaire during that time, was habitually delinquent in
support facilities. SCOTT (R Pa.)-3/3/75-Senate and Adminis-
tration reported July 23, 1975 (S Rept 94-298). Senate passed
The House completed action Oct. 22 on a three-year
Congressional Veto
paying taxes, and had been twice recommended for
July 25. House passed, amended, Sept. 3. Senate agreed to House
prosecution because he failed to file returns in 1945 and
amendment Sept. 8, President signed Sept. 19, 1975.
)
authorization measure for the Consumer Product Safety
The Butler amendment giving Congress veto power
Commission (HR 6844) that first came up on the floor in
over commission proposals was adopted 224-180-a margin
1946 when he was a state senator. There is no evidence that
PL 94-99 (HR 9524)-Extend until Nov. 15, 1975, the Emergency
mid-July. Republicans with objections to the bill out-
of victory that surprised its backers. Republicans favored
Montoya has illegally evaded taxes or that he was aware of
Petroleum Allocation Act of 1973. STAGGERS (D W.Va.) and
flanked its sponsors on a number of issues-paving the way
the amendment 125-14, while Democrats opposed it 99-166.
or sought special treatment from the IRS, according to the
DINGELL (D Mich.)-9/10/75-House passed Sept. 11, 1975.
for conflict with the Senate, which passed its own version
(Vote 468, Weekly Report p. 2286)
Post.
Senate passed, amended, Sept. 26. House agreed to Senate
of the legislation (S 644) in July. (Earlier House action,
amendment Sept. 26. President signed Sept. 29, 1975.
The amendment would require the commission to sub-
Weekly Report p. 1791; Senate bill, Weekly Report p. 1621)
Senate Secret Transcripts
mit all rules, regulations and orders to the House and
PL 94-100 (H J Res 672)-Extend for two months the expiration date
One controversial amendment, offered by M. Caldwell
Senate Commerce Committees for review. Either chamber
A Senate historical office has been established to
of the Defense Production Act, and funding of the National Commis-
Butler (R Va.) and adopted with the help of 99 Democrats,
then would have 30 legislative days to pass a resolution of
declassify long-secret committee transcripts and notes and
sion on Productivity and Work Quality. ASHLEY (D Ohio)-9/26/75
would give Congress an opportunity to review and veto all
-House passed Sept. 29, 1975. Senate passed Sept. 30. President
disapproval to prevent the proposed regulation from taking
make them available to scholars and the public. The office,
signed Oct. 1, 1975.
rules and regulations proposed by the commission. Another
effect. A regulation could take effect before the 30-day
created in July under the provisions of the Legislative
Butler amendment knocked out a provision that would
PL 94-101 (S 2270)-Authorize an increase in the monetary autho-
waiting period if both chambers passed a resolution
Branch Appropriations Act of 1976 (HR 6950-PL 94-59),
have allowed the commission to conduct its own civil litiga-
will be under the direction of the Senate historian and have
rization for certain comprehensive river basin plans previously
approving it.
approved by the Congress. GRAVEL (D Alaska)-8/1/75-Senate
tion without Justice Department supervision.
Butler said his proposal would solve the problem of
a five-member professional staff.
Public Works reported Aug. 1, 1975 (S Rept 94-362). Senate passed
By parliamentary maneuver, Republicans also were
"agencies issuing rules and regulations which go far beyond
Sept. 4. House passed Sept. 19. President signed Oct. 2, 1975.
successful in removing a provision aimed at giving the two-
the intent of the Congress, or which impose senseless
PL 94-102 (HR 543)-Extend the lending provisions of the Rehabili-
year-old commission more flexibility in choosing which of
restrictions upon the public." He said many laws had such
tation and Betterment Act to certain irrigation projects constructed
four laws to use in regulating various products. And when
CORRECTIONS
veto clauses. "I do not anticipate frequent use of this
under authority of the Small Reclamation Projects Act. JOHNSON
the bill first came up in July, a provision to isolate top com-
(D Calif.)-1/14/75-House Interior and Insular Affairs reported
provision," Butler added. "Indeed, it would be my fervent
mission staff from White House political interference was
(Previous corrections, Weekly Report p. 2059)
March 20, 1975 (H Rept 94-102). House passed April 8. Senate
hope that it would never be used."
Interior and Insular Affairs reported Sept. 18 (S Rept 94-380).
removed on a voice vote.
Opponents of the amendment raised many objections.
Page 1452, Labor-HEW appropriations chart-The
Senate passed Sept. 22. President signed Oct. 3, 1975.
They said it would violate the constitutional principle of
transition period figure appropriated by the House should
PL 94-103 (HR 4005)-Revise and extend programs authorized by
Outlook
separation of powers, undercut the commission's effec-
read $8,967,759,000 (not $8,968,162,000).
the Developmental Disabilities and Facilities Construction Act.
Because of these changes and because of the long delay
tiveness in emergencies and distract Congress from its real
Page 1950, Col. 1, last paragraph-M. B. O'Sullivan,
ROGERS (D Fla.), SATTERFIELD (D Va.), PREYER (D N.C.),
in passing the House bill, Chairman Frank E. Moss (D
work. "There is no point in setting up an agency in the first
not O'Brien, is chairman of the Department of Laboratory
SYMINGTON (D Mo.), SCHEUER (D N.Y.), WAXMAN (D Calif.),
Medicine at the Mayo Clinic.
HEFNER (D N.C.), FLORIO (D N.J.), CARNEY (D Ohio), WIRTH
Utah) of the Senate Commerce Consumer Subcommittee
place if we are going to ask that every regulation be
(D Colo.), CARTER (R Ky.), BROYHILL (D N.C.), HASTINGS (R
Oct. 8 introduced a simple two-year authorization bill (S
brought back to the House for approval," said Andrew
Page 2034, Col. 1, 2nd paragraph in vote analysis
N.Y.) and HEINZ (R Pa.)-2/27/75-House Interstate and Foreign
2494).
Maguire (D N.J.).
box-The senators listed voted for busing in 1974, not
Commerce reported March 13, 1975 (H Rept 94-58), House passed
April 10. Senate passed, amended, June 2. Conference report filed
The bill includes one amendment along with the
"The tide is turning on this issue," a Butler aide com-
against it.
in House Sept. 11 (H Rept 94-473). House agreed to conference re-
authorization-a provision prohibiting the commission
mented after the vote. He attributed its success to a
Page 2042, Col. 1, 5th paragraph-The previous ratio
port Sept. 18. Senate agreed to conference report Sept. 23. Presi-
from taking any actions that would restrict the sale or use
number of factors, including the interest aroused by the
for the Senate Commerce Committee was 12 Democrats
dent signed Oct. 4, 1975.
of guns or ammunition. A court ruling in late 1974 ordered
opening of hearings Oct. 21 before a House Judiciary sub-
and six Republicans (not 14 D, 6 R).
PL 94-104 (S 2230)-Authorize funds for the Board for International
the commission to consider a citizen group's petition for a
committee on several bills that would give Congress broad
Page 2049, Col. 1, 2nd paragraph-Third line should
Broadcasting for fiscal year 1976, to promote improved relations
ban on ammunition, although it is reluctant to involve
authority to veto regulations of federal agencies. Also, he
read: Nature magazine (not Science magazine).
between the United States and Turkey, and to assist in the solution
itself in that area. (HR 6844 and S 644 both include similar
pointed out that earlier on Oct. 22 the House had voted
Page 2103, Col. 2, 9th paragraph-Should read: op-
of the refugee problem in Cyprus. SPARKMAN (D Ala.) and CASE
(R N.J.)-7/30/75-Senate passed July 31, 1975. House International
provisions on firearms and ammunition, as well as
down for the second time a proposed regulation of the
posed by Spellman (not proposed).
Relations reported Sept. 22 (H Rept 94-500). House passed,
provisions prohibiting the commission from regulating
Federal Election Commission on grounds that it violated
Page 2104, 4th paragraph: The total appropriation of
amended, Oct. 2. Senate agreed to House amendment Oct. 3.
cigarettes.)
the intent of Congress-and that members heard a lot of
$6,274,612,000 was for fiscal 1976, not for 15 months.
President signed Oct. 6, 1975.
In introducing S 2494, Moss said it was "crucial" that
talk about overregulation of business during the October
Page 2160, Col. 1, 8th paragraph-Sentence explaining
PL 94-105 (HR 4222)-Amend and extend the School Lunch and
Congress act on the gun issue. He added that the com-
recess. (Election regulation, Weekly Report p. 2269; details
the Rozelle Rule should read: "The Rozelle Rule, named for
Child Nutrition Act and related feeding programs. PERKINS (D
mission's authorization "should have been approved over
of congressional veto proposals, pros and cons, box, p. 2322)
NFL Commissioner Pete Rozelle, involves compensation
Ky.), QUIE (R Minn.), BRADEMAS (D Ind.), THOMPSON (D N.J.),
MEEDS (D Wash.), DANIELS (D N.J.), PEYSER (R N.Y.), DENT
four months ago according to the timetable spelled out in
paid to a team if one of its players signs with another team
(D Pa.), SARASIN (R Conn.), PRESSLER (R S.D.), O'HARA (D
the Congressional Budget Act." (Budget process, Weekly
Legal Independence
after playing out his contract." Such compensation is re-
Mich.), GOODLING (R Pa.), HAWKINS (D Calif.), FORD (R
Report p. 2253)
The Republicans prevailed on another Butler
quired by NFL rules, but not by the Rozelle Rule itself,
Mich.), MINK (D Hawaii), CHISHOLM (D N.Y.), BIAGGI (D N.Y.),
A staff aide on the Senate committee said Oct. 28 that
amendment, adopted 209-195, removing a provision of the
which allows the commissioner to settle disputes over the
ANDREWS (D N.C.), LEHMAN (D Fla.), BENITEZ (Pop. Dem.
amount of compensation to be paid.
P.R.), BLOUIN (D Iowa), CORNELL (D Wis.), RISENHOOVER (D
the panel had not decided whether to appoint conferees to
bill that would have authorized the Consumer Product
Okla.) and ZEFERETTI (D N.Y.)-3/4/75-House Education and
resolve the differences between the House and Senate-
Safety Commission to conduct its own civil litigation in-
Labor reported March 17, 1975 (H Rept 94-68). House passed April
passed bills, or to push S 2494 as an alternative.
dependently of the Justice Department. Republicans sup-
28. Senate Agriculture and Forestry reported June 26 (S Rept 94-259).
ported the proposal 132-6 and Democrats opposed it 77-189.
Senate passed, amended, July 10. Conference report filed in House
PUBLIC LAWS
(Vote 471, Weekly Report p. 2286)
July 30 (H Rept 94-427). Conference report filed in Senate (S Rept
Floor Action
94-347). Senate recommitted conference report Sept. 5. Conference
The House had debated the amendment and adopted it
(Previous Public Laws, Weekly Report p. 2245)
report filed in House Sept. 15 (H Rept 94-474). Conference report
by voice vote while sitting as a "committee of the whole"
filed in Senate Sept. 17 (S Rept 94-379). House agreed to confer-
The House approved eight amendments to HR 6844
Sept. 26. Butler argued that the Justice Department, with
PL 94-97 (S 331)-Redesignate Nov. 11 of each year as Veterans Day and
ence report Sept. 18. Senate agreed to conference report Sept. 19.
and rejected one other on Oct. 22 before passing the bill 313-
its broad overview and expertise, should coordinate all
making such day a legal public holiday. HRUSKA (R Neb.), ALLEN
President vetoed Oct. 3. House passed over President's veto Oct. 7.
(D Ala.), BUCKLEY (Cons.-R N.Y.), CURTIS (R Neb.), DOLE
Senate passed over President's veto Oct. 7.
I
86. (Vote 473, Weekly Report p. 2290)
federal litigation. If Congress wants to change this, he
PAGE 2320-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
Reproduction prohibited in whole part except by editorial clients
Reproduction prohibited whole in part except by editorial clients
Nov. 1, 1975-PAGE 2321
Consumer Affairs 2
Consumer Affairs 3
Congressional 'Veto' Over Federal Regulations
Support for Idea Grows as Constituents Complain
The House's approval Oct. 22 of an amendment that
public outery; a regulation requiring all new cars to have
applying it individually to the Consumer Product Safety
would allow the House or Senate to veto any regulation
seat belt-ignition interlock systems (repealed by
Commission. But debate on the amendment paralleled
"There is no
of the Consumer Product Safety Commission was a plus
Congress in 1974), and an order of the Equal Employ-
the arguments being raised on the issue of a general con-
for those who want to apply the "congressional veto" to
ment Opportunity Commission (EEOC) instructing the
gressional veto.
point in setting up
other federal agencies as well. (House action, story, p.
Houston police force to stop discriminating against con-
an agency in the
2321)
victed criminals in its hiring policy.
Congressional Responsibility
first place if we
The idea has attracted members in substantial
HR 3658 would give either chamber of Congress up
"I think the whole problem has been that we have
are going to ask
numbers from both parties. When the House Judiciary
to 60 days to pass a resolution disapproving every
Subcommittee on Administrative Law and Government
proposed regulation that carries a criminal penalty for
on too many occasions delegated too broad a charge to
that every regula-
violation.
the administrative agencies," Levitas
Relations opened hearings Oct. 21, several bills to in-
stitute a congressional veto procedure had a total of 170
pro
argued on the House floor Oct. 22.
tion be brought
Along with the Levitas measure, the Judiciary sub-
committee is considering another bill (HR 8231) in-
Congress should try to prevent that in the
back to the House
cosponsors.
"The federal bureaucracy has evolved into a
troduced by Del Clawson (R Calif.) that would apply the
future, he said, but another positive step
for approval."
would be to institute a veto mechanism.
fourth-non-constitutional-branch of government,
congressional veto to all regulations of federal
"What we are really talking about here," he said, "is
-Rep. Andrew Maguire
with a thick tangle of regulations that carry the force of
departments and agencies, regardless of the penalty in-
volved. It would allow vetoes only when Congress
that when Congress delegates to some other body the
law without benefit of legislative consideration," Elliott
H. Levitas (D Ga.), sponsor of one such bill (HR 3658),
power to enact laws. then it is certainly a responsible
regulatory agency has plenty of opportunity to present
decided a regulation was inconsistent with the intent of
said at the hearings.
Congress, instead of whenever Congress disagreed with
act on the part of Congress to retain enough control that,
his views at hearings before the final regulation is
where the bureaucrats have gone off the deep end, either
issued, and afterward in the courts.
After listening to his constituents during the
a regulation as provided in the Levitas bill.
Columbus Day recess, Levitas said, "I am more con-
In the Senate, James Abourezk (D S.D.) has in-
standard house of Congress could veto and reject that unwise
"If a particular agency goes beyond the standards
we set, we can very clearly redefine those standards in
vinced than ever that this is an idea whose time has real-
troduced a companion bill (S 1678) to the Levitas
The right to appeal an agency regulation in the
the ordinary legislative process," he said. "But to say we
ly come." Other members of Congress also report con-
measure and Bill Brock (R Tenn.) is sponsoring the
tinuing complaints from constituents about government
courts does not protect citizens adequately, Levitas
can just vote up or down in one body of Congress on
Clawson version (S 2258).
regulations affecting many aspects of life, from school
Levitas said he would expect a congressional veto to
argues, because courts deal only with "technical legal
every regulation is to "cut out the [commission's] power
desegregation to worker safety, sex discrimination to en-
be used rarely-only for regulations that were clearly
procedural points" and not the "foolhardiness or the
to act as spelled out in the statute."
wisdom of the regulation."
The veto process also could give industries a chance
vironmental protection.
unrealistic or out of line with congressional intent. He
Proponents of the idea can think of many
contends that Congress needs the option to block
According to John Y. McCollister (R Neb.), the veto
to shoot down regulations by mounting big lobbying
mechanism would be used SO rarely that it would not put
campaigns in Congress, Drinan added.
"bureaucratic horrors" that could be avoided with a con-
offending regulations in order to protect the people's
an intolerable burden on Congress. M. Caldwell Butler
"Once we get to delegating authority with the idea
gressional veto. They mention, for example, orders for
right to be governed by their elected representatives, not
unknown bureaucrats.
(R Va.), sponsor of the amendment, pointed out that the
that we can pull back like a yo-yo," warned Bob
restrictions on parking in Boston that were rescinded by
the Environmental Protection Agency (EPA) after a
To dramatize his case, Levitas cites statistics show-
possibility of a congressional veto would improve the
Eckhardt (D Texas), "we will delegate authority with
commission's work. "If we have this sort of thing hang-
less procedural safeguards. The result is a far greater
ing that in 1974, 67 federal agencies adopted 7,496
regulations while Congress enacted 404 public laws-"a
ing over the head of an agency, then it will listen to the
heretofore." delegation of congressional power than has existed
Congress should
ratio of more than 18 to 1!" He says Congress has
Congress, and it will do what the Congress wants...."
William M. Brodhead (D Mich.) argued that it was
"retain enough con-
enacted 126 bills since 1932 that contain some provision
Unconstitutional, Unwieldy Process
"unsound as a matter of constitutional theory" to allow
trol that, where the
for congressional review or approval of administrative
actions, and the trend is growing. Recent examples in-
Robert F. Drinan (D Mass.) responded that the veto
"one body of Congress to veto the delegated authority
bureaucrats have
proposal would "turn administrative law on its head,
that has been given to the commission by both houses."
clude the 1973 War Powers Act, the Budget Control and
gone off the deep
Impoundment Act of 1974 and the Federal Election
would probably violate the constitutional
Along with the constitutional arguments, op-
end, either house of
Campaign Act of 1974.
con
principle of separation of powers," and in
ponents of the amendment said that Congress has
most cases would do nothing more than
neither the time nor the technical capacity to review
Congress could veto
and reject that un-
House Debate on 'Veto'
"add another 30 days of delay to the ul-
federal regulations on a case-by-case basis. "We have
timate promulgation of a safety standard
enough trouble moving on items of legislation that are
which is needed to protect the consumer."
essential," said Andrew Maguire (D N.J.), "and there is
wise standard.'
A number of the House members who are cospon-
Drinan contended that everyone affected by a stan-
no point in setting up an agency in the first place if we
-Rep. Elliott H. Levitas
soring the congressional veto legislation voted against
dard or regulation proposed by the commission or other
are going to ask that every regulation of that agency be
brought back to the House for approval."
added, it should consider separate legislation that would
knocked out a provision that would have allowed the com-
House opponents of the idea argued that it would mean
apply to all agencies.
mission to choose which of the four major laws it ad-
a de facto repeal of the Flammable Fabrics Act and other
have ample notice of which law was being used in a par-
John E. Moss (D Calif.) responded that freeing the
ministers to use in regulating a particular product.
laws transferred to the commission in 1972, and would
ticular case affecting them.
commission from Justice Department interference in its
The Consumer Product Safety Act of 1972 (PL 92-573),
confuse regulated industries.
A Broyhill amendment to strike the flexibility provi-
civil cases would prevent "duplication of effort" and
which established the commission, directed it to regulate
With all the regulations and court decisions issued un-
sion was defeated 204-205 when the House was in com-
political interference in commission decisions.
products under several other existing laws-the Flam-
der these laws, asked James T. Broyhill (R N.C.), "how
mittee of the whole, with Speaker Carl Albert (D Okla.)
The Senate bill would allow the commission to conduct
mable Fabrics Act, the Federal Hazardous Substances Act,
would the businesses and the industries that are regulated
2286) breaking the tie by voting no. (Vote 467, Weekly Report p.
its own civil and criminal litigation if the attorney general
the Poison Prevention Packaging Act and the Refrigerator
be aware of what requirements are going to be made of
did not decide to take a proposed case within 45 days of
Safety Act-if they were sufficient to protect consumers.
them if the commission should pick and choose the
In a parliamentary maneuver just before final passage
notice. An amendment to strike the provision was defeated
As reported, HR 6844 would allow the commission to
authorities under which to regulate potential hazards?"
of the bill, Broyhill moved to send the bill back to com-
by voice vote. (Weekly Report p. 1622)
use the Product Safety Act any time it would be in the
Lionel Van Deerlin (D Calif.), floor manager of the bill,
mittee to have the provision removed.
In yet another defeat for the bill's sponsors on the
public interest. The Senate-passed bill includes a similar
answered that the provision was meant simply to give the
When that was adopted 204-198, Van Deerlin conceded
Interstate and Foreign Commerce Committee, the House
provision.
commission "greater flexibility," and that businesses would
Report p. 2286)
on behalf of the Commerce committee. (Vote 472, Weekly
PAGE 2322-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
Reproduction prohibited whole or in part except by editorial clients
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
Reproduction prohibited whole or part except by editorial clients
Nov. 1, 1975-PAGE 2323
Consumer Affairs 4
Consumer Affairs 5
Sampling Plans
By Bob Eckhardt (D Texas), to permit states and
John H. Rousselot (R Calif.) complained that the con-
After making some modifications, the committee ma-
localities to set their own regulations on the use of
sumer liability limit in the bill would prevent national
Agency priorities. Do agencies get bogged down in
jority prevailed on the issue of whether the commission
fireworks, free of federal government intervention.
banks from offering leases because of the restrictions on
paperwork? Do they focus on minor infringements and
should be allowed to require "product sampling plans" as a
Eckhardt said this freedom was necessary because
banks' involvement in unrelated business matters.
problems of small companies while neglecting the larger
means of compliance with its mandatory safety standards.
"fireworks are a unique type of hazard, and the hazards in
Spellman said the bill was "definitely not intended to
ones? Do they weigh the costs and benefits of a proposal
The committee had ruled this out on grounds that it would
one area are quite different from the hazards that may ex-
address the question of bank eligibility to participate in
before acting? (Paperwork problem, Weekly Report p. 2167)
limit the commission's ability to prosecute willful violators
ist in other areas."
consumer leasing," a matter now in the courts. She said it
Regulation versus deregulation. This issue "may be the
of its standards.
By H. John Heinz III (R Pa.), requiring the commission
should be addressed in separate legislation.
most significant of all," Wegman said. The committee will
On Sept. 24, John Y. McCollister (R Neb.) offered an
to consider the "special needs" of the elderly and han-
The Senate Banking, Housing and Urban Affairs Sub-
try to "identify the fundamental criteria for regulation."
amendment to strike the provision, arguing that "it is im-
dicapped in making regulations. The Senate adopted this
committee on Consumer Affairs approved a similar con-
Too often in discussions of regulatory reform, Wegman
possible to guarantee that all products distributed in com-
amendment also.
sumer leasing bill (S 1961) Sept. 29.
contended, economic regulation such as transportation rate
merce are perfectly safe." He said sampling plans "provide
By Eckhardt, to require that the 10 industry members
setting has been confused with regulations designed to
a technically valid and effective means of spotting noncon-
on
the Flammable Fabrics Advisory Committee include
protect public health and safety.
forming products before they reach the marketplace."
representatives of natural fiber producers, synthetic fiber
Senate Hearings:
Case Studies
Moss responded that although manufacturers should
producers and makers of fabrics for clothing and furniture.
be allowed to use sampling plans for their own purposes, in-
By Richardson Preyer (D N.C.), to require that courts
REGULATORY REFORM
The three witnesses who testified Oct. 29 documented
corporating them into government safety standards would
uphold standards set under the Flammable Fabrics Act if
their frustrations in dealing with regulatory bodies. Con-
"drastically weaken" the commission's authority to protect
they are supported by "substantial evidence" in the record.
Congress formally kicked off its study of federal
consumers. To prove a case, he said, the commission would
regulation Oct. 29 as the Senate Government Operations
sumer advocate Ralph Nader said the National Highway
The act now requires standards to be upheld in court if they
have to show not only that a product violated a standard,
are not found to be "arbitrary and capricious."
Committee began two days of hearings on the need for
Traffic Safety Administration (NHTSA), acting under
pressure from the Nixon White House and the auto in-
but that the manufacturer's sampling plan was statistical-
-By Prudence Crewdson
regulatory reform. "This is the first time a comprehensive
dustry, deferred a proposal to require "air bags" in cars and
ly unsound.
study of the federal regulatory agencies has ever been un-
opted for mandatory seat-belt interlock systems instead.
The House approved, 200-193, a substitute amendment
House Passage:
dertaken by Congress," said Chairman Abraham Ribicoff
(D Conn.).
Seat belts are frustrating and difficult to use, Nader said,
offered by Moss that would rule out sampling plans except
while air bags are a "passive restraint" that could save
for safety standards that apply to glass bottles or products
TRUTH IN LEASING
The Senate Government Operations and Commerce
thousands of lives a year.
subject to flammability standards. (Vote 408, Weekly
Committees are conducting a joint one-year regulatory
"The case of the NHTSA's failure to mandate life-
Report p. 2086)
The House Oct. 28 approved the "Truth in Leasing Act"
study, for which the Senate has authorized $500,000. In the
saving passive restraints clearly points out the need for
The exemption for glass bottles was added at the
(HR 8835), a bill designed to give consumers the full picture
House, the Oversight and Investigations Subcommittee of
suggestion of Harley O. Staggers (D W.Va.), chairman of
before they agree to lease cars, furniture and other items.
the Interstate and Foreign Commerce Committee, headed
regulatory reform," Nader said, "but for better regulation
the Commerce Committee. McCollister protested that it
by John E. Moss (D Calif.), has been at work since last
without ex parte executive pressure, not for less
The vote was 339-41. (Vote 477, p. 2334)
regulation."
was "utter foolishness" to exempt a few products instead of
The bill would require companies to disclose in detail
summer on its own survey of nine federal agencies and is
Robert Beckman of Laker Airways described the de-
simply allowing the commission itself to decide when to in-
all the terms and costs of leases-from monthly payments
cooperating with the Senate effort. (Weekly Report p. 2076)
lays his company has encountered in trying to get Civil
clude sampling plans in its standards.
to finance, interest and depreciation charges-so that con-
Richard Wegman, chief counsel of the Government
Aeronautics Board approval to operate low-cost trans-
sumers can compare lease offers with other options such as
Operations Committee, outlined seven general areas the
atlantic flights. A third witness, Anthony Haswell of the
Suits and Attorneys' Fees
installment buying.
committee will explore in an effort to come up with con-
Rock Island Railroad, described an 11-year railroad
In addition, the bill would:
crete proposals for change:
The House adopted by voice vote an amendment
merger case before the Interstate Commerce Commission.
Impose disclosure rules on the advertising of leases, to
Unnecessary delays in the regulatory process. For ex-
offered by John F. Seiberling (D Ohio) that would give
judges discretion to award "reasonable fees" for expert
ample, Wegman said, it took the Food and Drug Ad-
Members of the committee's five-man advisory panel
prevent companies from trumpeting low monthly
on regulatory reform-composed of professors and former
payments without mentioning other charges that increase
witnesses and attorneys to individuals and groups that
ministration 11 years to rule on the percentage of peanuts
the cost of a lease.
that must be in peanut butter.
government officials-appeared at the hearings Oct. 30.
challenge actions of the commission-in suits for enforce-
Overlap and duplication among agencies. Makers of
The first of a series of regulatory reform symposiums,
Limit the liability of a consumer for payments after a
ment of a safety standard, for example. No objections were
sponsored by the Senate committees and the House sub-
lease expires to an amount equal to three monthly
voiced. The Senate adopted a similar amendment to S 644.
some pesticides must meet requirements of three agen-
committee, was scheduled for Nov. 6-7. It will examine "the
payments, unless there is physical damage beyond
cies-the Environmental Protection Agency, Consumer
Another amendment, offered by John M. Ashbrook (R
process of selection of regulators and confirmation under
reasonable wear, or default.
Ohio), would have authorized a two-year experiment in
and Product Safety Commission and the Occupational Safety
recent administrations."
Impose civil penalties for violations, and allow class ac-
Health Administration.
allowing private parties to bring civil damage suits against
Public participation. Is there an "imbalance of ad-
-By Prudence Crewdson
tion damage suits.
the commission for "misrepresentation" or "unreasonable"
The House Banking, Currency and Housing Committee
vocacy" that gives the regulated industries more access and
actions. It was rejected 166-230. (Vote 469, Weekly Report
approved the bill unanimously on Oct. 2 and reported it
input than individual citizens and public interest
p. 2286)
Oct. 8 (H Rept 94-544).
groups-and if so, how can this be remedied? Suggested
No-Fault Auto Insurance
Ashbrook said his proposal, which was similar to one
Substituting for Consumer Affairs Subcommittee
solutions include creation of an independent consumer ad-
adopted by the Senate, would "prevent the commission
Chairman Frank Annunzio (D III.) who was ill, Gladys N.
vocacy "intervenors." agency and public assistance to public interest
Supporters of national no-fault auto insurance
from hiding behind the cloak of sovereign immunity." He
Spellman (D Md.) explained the bill to the House. "Leasing
legislation won an important victory in their uphill
mentioned the almost legendary story of the Marlin Toy
consumer personal property such as automobiles or fur-
Agency independence. The biggest question, Wegman
fight Oct. 29 when the House Interstate and Foreign
Company of Wisconsin, which was severely damaged when
niture is a rapidly growing business," she said. "It is com-
said, is "how can agencies be better insulated from the in-
Commerce Subcommittee on Consumer Protection and
the commission accidentally put its products on a list of
peting with credit sales." She said that from 1963 to 1973,
dustries they regulate?" There are many proposals to deal
Finance approved a no-fault bill (HR 9650) similar to
banned toys.
for example, new car sales increased 42 per cent while leas-
Opponents of the amendment contended that it would
with this problem, including tighter controls on ex parte
one (S 354) now pending before the Senate. The vote
ing of cars grew by 127 per cent.
(outside) contacts and restrictions that would curb the
was 5-4.
be unfair to subject the commission to tort liability when
Leases often are advertised as having low monthly
practice of moving directly from government agency jobs to
Approval of the bill, which was introduced by Sub-
other government agencies were immune, and that the
payments and no down payments, Spellman said,
regulated industries, and vice versa. (Ex parte contacts,
issue needed further study. "Obviously, what the
committee Chairman Lionel Van Deerlin (D Calif.),
attracting "innocent consumers who then sign lease
Weekly Report p. 2265)
came after opponents on the panel decided to shift
gentleman is proposing is at least a minor revolution
arrangements only later to be surprised to learn that they
against federal agencies," said Robert F. Drinan (D Mass.).
Congressional oversight. Suggestions for improving
their focus to the full committee. The bill is opposed by
are liable for a huge balloon payment at the end of the
congressional monitoring of agencies include setting up
a well-financed trial lawyers group, some insurance
lease."
Other Amendments
liaison offices in agencies, more access to agency budget re-
companies and the Ford administration. Supporters
Thomas N. Kindness (R Ohio) objected that the bill
quests and power to veto individual regulations.
include consumer groups, labor unions and some in-
Before passing HR 6844 the House adopted four other
was "another attempt to enter an area of the law which is
(Congressional veto, p. 2322; oversight background, Weekly
surance companies. (Lawyers funds, Weekly Report
amendments Oct. 22 without debate:
properly within the jurisdiction of the states."
Report p. 595)
p. 2246; Senate bill, p. 1622)
PAGE 2324-Nov. 1, 1975
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Reproduction prohibited in whole in part except by editorial clients
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
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Nov. 1, 1975-PAGE 2325
Politics 2
Bentsen has since announced that he will enter a
They expect him to win at least a plurality of the delegates
"representative number of primaries" across the nation,
in the presidential voting because of the controversial
Politics
with the qualification that the exact ones will be deter-
primary law passed by Bentsen supporters in the 1975 state
mined after all states complete their delegate selection
legislature. The law will expire after the 1976 primary. It
rules. He does not plan to enter the first-in-the-nation
permits Bentsen to win all the delegate votes in a state
New Hampshire primary Feb. 24, but probably will enter
senatorial district if his delegate candidates receive a
several other northern primaries. Ohio, Pennsylvania and
plurality of the vote. (Texas primary story, Weekly Report
BENTSEN: TRIALS OF AN UNRECOGNIZED CANDIDATE
Illinois are considered likely targets.
p. 1104)
Bentsen has spent considerable time in the vote-rich
Wallace supporters and Texas liberals unsuccessfully
states of New York and California. But, because of the cost
opposed the primary. Billie Carr, the Democratic national
Five years into his first term, Lloyd Bentsen, the well-
of running statewide campaigns, he will likely concen-
committeewoman from Texas and a long-time liberal
tailored junior senator from Texas, called the ritual news
trate on targeted districts in these states.
adversary of Bentsen, filed a challenge with the
conference to announce his candidacy for the Democratic
The Bentsen campaign is particularly well organized,
Democratic National Committee's Compliance Review
presidential nomination in 1976. "The paramount issue is
his aides say, in four southern states: Virginia, Louisiana,
Commission. The challenge, though, was dismissed by the
economic recovery," said the millionaire former insurance
Texas and Oklahoma. In Virginia, he executed a coup of
commission at its October meeting, and Carr may file a
executive, offering himself as the best-qualified candidate
sorts by getting endorsements from some of the state's top
court suit against the primary.
for solving the nation's economic problems.
Democrats. In Louisiana, Bentsen has the endorsement of
With new Democratic delegate selection rules and the
That was in February 1975. Bentsen had laid the
Democratic Gov. Edwin W. Edwards.
long list of candidates splintering the vote, Bentsen is con-
groundwork for the campaign the previous year, when, as
Texas, though, is the keystone of the Bentsen cam-
vinced that his position near the philosophical center of the
chairman of the Democratic Senatorial Campaign Com-
paign. He must win the Texas primary May 1, not only to
party is the right place to be in 1976. As he commented to
mittee, he had visited 36 states and traveled 200,000 miles.
demonstrate his home-state popularity but to assure
an interviewer in July: "The other [Democratic] candidates
In the first half of 1975, his all-out campaign took him to 40
himself of a sizable bloc of delegates. His chances in Texas
are trying to move into the middle. I don't have to. I'm
states and logged another 300,000 miles.
are complicated by the fact that he will be on the ballot
already there."
But the frenetic travels and the well-modulated
twice-as a candidate both for President and for re-election
Still, while Bentsen has intensively courted a wide
message of the 54-year-old Texan did not reap the response
to the Senate.
range of groups, there is little evidence that he has
he had hoped for. By autumn, he was short of money and
Not only must Bentsen wage two campaigns, but the
attracted deep support from any segment of the party. Tex-
low in name recognition.
Federal Election Commission has ruled that he may spend
as Democratic Chairman Calvin Guest observed in a
An analytical, pragmatic man, he took a practical
only $640,000 in the Texas primary, the Senate maximum.
September 1975 interview with Time magazine: "The
alternative. He retrenched. "If I had the money, if I were
His presidential opponents, however, each may spend $1.3-
problem is to communicate his great leadership ability.
permitted by the law to raise it and if I were permitted to
million in the state. The commission concluded that
Groups he has spoken to often go away without under-
spend it, I'd go into the big industrial states and buy
Bentsen "is already the senator from Texas and thus,
standing what he really said." A Bentsen Senate aide con-
massive TV," he said. don't, so I think it's smarter to hus-
within Texas, begins with a significant exposure advantage
curred: "His ability is more managerial than inspirational.
band my resources and stay the course."
over his rivals." Bentsen campaign tacticians are confident
It's difficult to communicate this in a campaign." Although
In short, if the 1976 Democratic nominee is chosen on
that, in spite of spending limitations, he can win both races.
Bentsen is not a speaker who influences his audiences, most
the first convention ballot, his name will not be Lloyd
close observers of his campaign remark that he comes
Bentsen. Bentsen's ultimate success may depend on a
across as calm and knowledgeable. His supporters believe
stalemate in the primaries that results in a multi-ballot
Bentsen's Interest-Group Ratings
that this campaign style will be an asset in 1976.
convention and the eventual selection of a compromise can-
Commenting on the generally unemotional response to the
didate. His modified strategy is to concentrate on selected
Americans for Democratic Action (ADA)-ADA
lengthy roster of Democratic contenders, a Bentsen aide
areas, hoping to go into the convention with a sizable bloc
ratings are based on the number of times a represen-
observed: "There'll be no little girls screaming and tearing
of delegates and thus a strong bargaining position.
tative voted, was paired for or announced for the ADA
cuff links off this time around."
"I am beginning to think that no one will go into the
position on selected issues.
The Bentsen campaign staff claims inroads among
convention with a commanding lead," Bentsen said in a
National Farmers Union (NFU)-NFU ratings
minority and interest groups; the most impressive, an in-
September interview with The Houston Chronicle. "It
In addition to his fund-raising difficulties, Bentsen
are based on the number of times a representative
vitation to speak to the AFL-CIO national convention in
means a better chance for me. Things might break my
cited his Senate responsibilities as a major reason for scal-
voted, was paired for or announced for the NFU
early October. Bentsen was one of only four senators in-
way."
ing down his campaign. "My first commitment is in the
position.
vited to appear (Henry M. Jackson of Washington, Birch
The campaign finance reforms of 1974 are the reason
Senate," he said. "If I were out of a job like some of the
AFL-CIO Committee on Political Education
Bayh of Indiana and Hubert H. Humphrey of Minnesota
for Bentsen's money shortage. But they may also be his
candidates, then I could run in most of the primaries."
(COPE)-COPE ratings reflect the percentage of the
were the others). However, this inroad with organized labor
salvation in keeping some semblance of a campaign alive in
Staff disagreements over campaign strategy were
time a representative voted in accordance with or
could be jeopardized by Bentsen's announced intention to
1976. He has raised the necessary funds in small con-
played up by the press after the Sept. 5 resignation of Ben-
was paired in favor of the COPE position.
vote against the common-site picketing bill, a measure of
tributions from the required minimum of 20 states to
jamin L. Palumbo, Bentsen's campaign manager and
Americans for Constitutional Action
particular importance to the building trades unions.
qualify for matching campaign money from the federal
former aide to Democratic New Jersey Sen. Harrison A.
(ACA)-ACA ratings record the percentage of the
Early Years, House Career
treasury.
Williams Jr. Palumbo's departure spurred reports that
times a representative voted in accordance with the
this represented an abandonment of his proposed "go-for-
ACA position.
Liberalism has not been a characteristic of Bentsen
The Troubled Campaign
broke" approach. Palumbo reportedly favored a strong
Following are Bentsen's ratings since he entered
and his family. His paternal grandparents were from Den-
Despite the travels, the speeches and the slogan-"A
campaign in the northeastern primaries-liberal
the Senate in 1971:
mark. They migrated to the lower Rio Grande Valley early
strongholds where Bentsen is not well known-hoping that
in the 20th century. Bentsen's father and uncle became
Roosevelt Democrat for the "70s"-Bentsen has remained
the Texan could be dramatically successful, as John F.
ADA
COPE
NFU2
ACA
wealthy in real estate, at the end of World War II owning
unknown to most Democrats. A Harris Survey in the
summer of 1975 found that his name was recognized by
Kennedy was in West Virginia in 1960.
100,000 acres of ranch and farm land. Although accused of
1974
38
45
59
But Bentsen opted for a lower-risk strategy, one which
41
1973
land fraud by several customers in the late 1940s and early
only one-third of those surveyed nationwide, nearly the
55
64
71
41
same percentage as in a similar poll taken two months
would concentrate his time and resources on areas where
1972
35
1950s, the Bentsens were never convicted. In 1974, the for-
30
67
45
earlier. He was favored for the nomination by only 1 per
he expects the best results. Bentsen commented that he
1971
33
55
tune of Bentsen's father was estimated to be about $50-
73
33
cent of the Democratic respondents. Bentsen, though, has
would "play his strengths" in the primaries and caucuses
million.
and "go into those congressional districts where the voters
1. Failure to vote lowers score.
After graduation from the University of Texas Law
shown little concern with low poll figures, noting that when
he kicked off his senatorial campaign in 1970, he was
favor more moderate candidates, independent thinkers
2. Percentages compiled by CQ from information provided by groups.
School and service in the Army Air Corps in World War II,
rather than ideologues."
Lloyd returned to the Rio Grande Valley and moved quick-
known by only 2 per cent of the Texas voters.
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
Reproduction prohibited in whole or in part except by editorial clients
Nov. 1, 1975-PAGE 2327
PAGE 2326-Nov. 1, 1975
Reproduction prohibited in whole in pert except by editorial clients
Politics 3
Politics 4
ly into politics. With wealth and military fame, he made an
Senate Career
described Bentsen as a "cool, deliberative, analytical guy,
attractive candidate, and in 1946 (at age 25), he won his
Although disappointed by Bush's defeat, the White
first election-for county judge in Hidalgo County, Texas.
Bentsen's Background
not calculating for himself. Otherwise, frankly, he would
House, expecting Bentsen to vote conservatively in the
have voted with the Democrats on the attempt to override
Although a member of the county's powerful land-owning
Profession: Financier, attorney.
Senate, hailed Bentsen's election as a "philosophical vic-
President Ford's oil decontrol veto [Sept. 10, 1975]."
class, Bentsen was considered a brash newcomer and ran
Born: Feb. 11, 1921, Mission, Texas.
tory" for the Nixon administration. But the new senator
According to many Senate observers, Bentsen's office
on the slogan, "Beat the Machine." (Background box, op-
Home: Houston, Texas.
was quick to emphasize his Democratic credentials. Speak-
is one of the most efficient in the Senate. After his election,
posite)
Religion: Presbyterian.
ing to a group of Democratic women in January 1971, he
Bentsen hired a management consultant firm to review the
Two years later, he ran for the U.S. House of
Education: University of Texas, LL.B., 1942.
remarked: "If the Republicans were ready to claim me as a
efficiency of other Senate staffs and to make recommen-
Representatives. Using the same slogan, Bentsen
Offices: House, 1948-55; Senate since 1971.
soul brother, why did they send the whole first team down
dations for the operation of his own. The result was a
challenged incumbent Democrat Milton H. West (1933-48).
Military: Army Air Corps, 1942-45; discharged as major.
Anticipating a difficult campaign and suffering from ill
Family: Wife, Beryl Ann Longino; three children.
me?" to Texas to campaign and spend millions trying to beat
detailed organizational manual drawn up to pinpoint the
health, West bowed out of the primary race, and Bentsen
Committees: Finance: chairman, Subcommittee on
responsibilities of each staff member and guide the
defeated his remaining three opponents. He was unopposed
Financial Markets; Public Works: chairman, Subcommittee
Aware of Bentsen's conservative campaign against
management of the office. Bentsen has freely delegated
on Transportation; Joint Economic: chairman, Subcommittee
Yarborough, a number of Washington observers were
responsibility to his aides, and staff rapport is reportedly
in the general election and, at age 27, became the youngest
on Economic Growth.
equally surprised by the moderate voting record the new
good. "It's an excellent operation, no two ways about it,"
member of Congress. His district, the 15th, was a large one,
senator compiled. "A lot of people expected Bentsen to be a
situated north of the Mexican border and west of the Gulf
observed a Washington Correspondent for a Texas news-
dinosaur," an informed Texas source told Congressional
of Mexico. More than half of the residents were Mexican-
paper. A former Bentsen assistant stated that two leading
Americans, and Bentsen's fluency in Spanish was an asset.
later, he expressed interest in Democrat Ralph W. Yar-
Quarterly in a 1975 interview, "but one of his first votes
reasons for the office's successful operation are the
borough's (1957-71) Senate seat, but was dissuaded from
was against the SST." Bentsen also showed in early 1971,
Bentsen served three terms in the House, winning re-
senator's personal accessibility and managerial expertise:
running by President Johnson, who wanted to establish
on a move to change the cloture rule, that he would not be
"He has no hesitation to listen to someone normally not in
election each time without Republican opposition. He com-
harmony in the Texas party. From 1966 to 1969, Bentsen's
as conservative as most other southern senators. He sup-
the councils of the office. He's very well organized."
piled a basically conservative voting record and was a
wife served as Texas' Democratic national com-
ported the effort to reduce the majority required to invoke
While Bentsen has won praise as an intelligent, well-
strong supporter of public works and veterans' legislation.
He was rarely in the limelight, although in 1949 he was
mitteewoman.
cloture from two-thirds to three-fifths. Throughout his
organized senator who does his homework, he has neither
first term, Bentsen's special-interest group ratings have
sought nor attracted much public attention. He has allied
one of only two Texas House members to support an anti-
stayed near the center. (Box, p. 2327)
himself with the Democratic leadership of the Senate, gain-
poll-tax bill, and in 1950 he suggested that President
1970 Senate Campaign
Bentsen's Senate staff believes his moderate voting
ing compliments from Majority Leader Mike Mansfield
Truman threaten the North Koreans with use of the atomic
bomb if they did not withdraw from South Korea within a
"I want to be known or remembered for something
record has helped solidify his Texas political base. One aide
(Mont.) as a man of presidential stature. But Bentsen has
week.
other than my financial statement," Bentsen announced on
commented: "Sen. Bentsen has captured the broad center of
won few headlines. "He plays close with the leadership and
his return to elective politics in 1970. At the urging of
Texas almost perfectly," and cited a poll taken for the
strains to be moderate," said one source. "He's cautious in
Bentsen was mentioned as a gubernatorial candidate
senator's office in the late spring of 1975. It showed that 59
what he says, careful not to snipe at colleagues or fellow
in 1954. But, citing his inability to support his wife and
former Gov. John B. Connally (1963-69) and other leaders
children on his congressional salary of $12,500, he chose in-
of the state's conservative Democratic hierarchy, Bentsen
per cent of the Texas voters approved of Bentsen's perfor-
hustlers for the nomination."
abandoned his business career to oppose Yarborough for
mance in the Senate, and indicated that he would defeat
Bentsen's legislative specialty is the economy. He is a
stead to retire from the House at age 33 and enter private
Yarborough by better than 2 to 1 if they met in the 1976
business.
the party's Senate nomination. Yarborough, a three-term
member of the Finance, Public Works and Joint Economic
Democratic senatorial primary.
incumbent, had a liberal voting record and a maverick
Committees and chairs a subcommittee of each. His first
But Bentsen's centrist position has its detractors.
organization independent of the party structure. He en-
extensive national media exposure was in July 1974, when
Business Career
Billie Carr told CQ: "I don't think he's presidential material
joyed strong support from organized labor and the state's
he was chosen by Senate Democrats to deliver the party's
Borrowing $7-million from his family, Bentsen moved
chief minority groups, blacks and Mexican-Americans.
or qualified. He brags that he votes with liberals part-time,
televised rebuttal to President Nixon's economic message.
to Houston, where he established the Consolidated
An early underdog, little-known statewide, Bentsen
conservatives part-time. But he's without commitment.
It was a prestigious assignment for a Senate freshman. It
He's a poll-taker."
American Life Insurance Company. In 1958, Bentsen
relied on an extensive advertising campaign on television
gave him a forum in his area of expertise. And it may have
merged his company with Lincoln Liberty Life Insurance
and in the newspapers to gain recognition and throw Yar-
Members of Bentsen's Senate staff disagree. Ad-
given momentum to his presidential aspirations.
borough on the defensive. The ads labeled Yarborough as
ministrative Assistant Gary Bushell described his boss as a
Company of Lincoln, Neb., and gained controlling interest.
Bentsen headed the company's investments section, head-
an ultraliberal who was out of step with the more conser-
pragmatist who brings a "fact-finding, problem-solving
approach" to decision-making. Another Senate aide
Positions on Issues
quartered in Houston. In 1967, a holding company, Lincoln
vative Texas electorate. They helped to produce a campaign
Consolidated Inc., was formed, which controlled the in-
that was bitter even for the wide-open style of Texas
Following is a summary of the positions taken by
surance company, a banking operation and several mutual
politics.
Bentsen on some major issues since he has been in
funds. Bentsen became president of Lincoln Consolidated
Bentsen won with 53 per cent to Yarborough's 47 per
CQ Vote Study Scores*
Congress:
and chairman of the board of Lincoln Liberty Life.
cent. His victory was attributed to his advertising cam-
The Texas Observer reported that in 1969, Bentsen's
paign, his inroads among the conservative, poorer voters in
1974
Economy
1973
rural eastern Texas and a light turnout that was particular-
1972
last full year as president of Lincoln Consolidated, the in-
1971
surance firm alone, Lincoln Liberty Life, had assets of
ly noticeable among minority groups.
Presidential
Bentsen's economic proposals combine New Deal-type
more than $75-million. In addition to his leadership of the
Money was also a factor. Bentsen outspent Yarborough
public employment programs with tax reforms to help both
support
37
44
57
61
holding company, Bentsen was on the board of directors of
nearly 3 to 1, reporting expenditures of $800,000 to $275,000
opposition
business and wage-earners. Bentsen's proposals to revive
34
47
35
37
several companies, including Lockheed Aircraft Cor-
for Yarborough. More than a quarter of Bentsen's expen-
Voting
the economy stress the creation of more jobs. He has
poration, Continental Oil Company and Bank of the
ditures were for broadcast advertising. The purse strings of
Participation
74
89
90
proposed the creation of a youth-oriented conservation
89
Southwest.
wealthy, conservative Texans were opened to defeat Yar-
Party
work program similar to the Civilian Conservation Corps of
While declining to discuss his personal finances during
borough, and Bentsen collected more than 40 individual
unity
48
59
55
57
the 1930s, and the establishment of an employment tax
opposition
32
his 1970 Senate race, Bentsen disclosed in March 1971 that
contributions of more than $2,500 each.
35
38
36
credit. Designed to stimulate hiring in the private sector,
Conservative
his net worth was $2.3-million ($3.6-million in assets). His
In the general election, Bentsen's Republican opponent
the latter proposal would give businesses a 10 per cent tax
Coalition
leading assets were $1.8-million in real estate and nearly
was Rep. George Bush (1967-71). Like Bentsen, Bush was a
credit on the first year of every new employee's salary.
support
43
57
56
73
$1.3-million in stocks and bonds. In 1972, Bentsen sold his
millionaire businessman with a conservative image. There
To spur greater business investment, Bentsen has
opposition
38
36
34
18
active interest in Lincoln Consolidated Inc., and in 1974 he
were few major policy differences between the two, and the
Bipartisan
proposed several measures to increase the available invest-
placed his assets in a blind trust.
distinctions that developed were more of style than sub-
support
60
80
80
ment capital: principally, a reduction in the interest rate, a
78
Although immersed in the business world for 15 years,
stance. Against Bush, Bentsen's rhetoric moved back
opposition
8
6
9
9
decrease in the capital gains taxes for long-held assets, a
400 per cent increase in allowable capital-loss tax deduc-
Bentsen and his wife, Beryl Ann, kept their hands in
toward the center. Despite the active support of Bush by
Democratic politics. In 1960, Bentsen was the Texas finance
the Republican administration, Bentsen won with 53.5 per
*Explanation of studies, 1974 Almanac p. 986, 991, 1001, 1008, 1016.
tions and a 10 per cent investment tax credit. In January
1975, Bentsen introduced the Stockholders Investment Act
chairman for the Kennedy-Johnson campaign. Four years
cent.
(S 443), designed to increase competition in the stock
PAGE 2328-Nov. 1, 1975
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Reproduction prohibited whole or in part except by editorial clients
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Nov. 1, 1975-PAGE 2329
Politics 5
Politics 6
market by encouraging the participation of small and
medium-sized businesses.
Democratic Straw Vote:
In addition to substantial tax breaks and assists for
Bentsen Staff, Advisers
business, Bentsen has advocated permanent personal in-
Finance director: George L. Bristol, deputy treasurer of
come tax cuts totaling $13-billion, and a 20 per cent tax
the Democratic National Committee from 1969 to 1972. In
CARTER SHOWS SURPRISING STRENGTH IN IOWA POLL
credit for families saving up to $250 yearly for their
private business in Dallas before joining Bentsen as executive
children's higher education. The tax credit proposal, known
assistant in Austin office in 1974.
Former Gov. Jimmy Carter of Georgia drew some
much-needed national attention Oct. 25 by finishing far
Arizonan will be making a major effort in the state. Udall
as the educational savings plan, was introduced in bill form
Director of communications: Bob Healy, a former
ahead of other presidential candidates in a straw poll of
has already visited Iowa five times since June and is plan-
(S 666) in February 1975.
legislative assistant and speechwriter for Sen. Hubert H.
1,094 Iowa Democrats taken at a party fundraiser by the
ning four more visits before the end of the year.
Bentsen supported the 1975 Tax Reduction Act (PL 94-
Humphrey (D Minn.) and an aide to Bentsen while chairman
12), which, in the Senate version, called for a $30-billion tax
of Democratic Senatorial Campaign Committee in 1974.
Des Moines Register.
On Jan. 19, nearly 2,600 caucuses will be held in Iowa
Director of organization: Ron Platt, a native of
Iowa is important to Carter and to the national news
at the precinct level. This will be the opening round in the
cut and the repeal of the oil and gas depletion allowance.
Oklahoma who was executive assistant to former Virginia
media because the national selection of convention
selection of the state's 47 convention delegates, a process
Both features were modified in a House-Senate conference
Gov. J. Sargeant Reynolds (D 1970-71) and a campaign consul-
delegates begins with caucuses there Jan. 19. Those
that will not be complete until the state convention May 29.
committee. A permanent depletion allowance exemption
tant before joining Bentsen in January 1975.
for independent oil and gas producers, for which Bentsen
Administrative assistant: Gary Bushell, a lawyer who
caucuses will provide the first formal clues about how to
Iowa will have less than two per cent of the convention
had fought, was preserved.
served on the staff of the Federal Power Commission before
separate the party's serious contenders from its also-rans.
delegates-but its selection process starts first, and therein
lies its importance.
joining the Bentsen Senate staff in 1972.
Throughout most of 1975, Carter has been regarded
nationally as one of the also-rans. But Democrats at the
Until 1972, the caucus method of delegate selection
Energy
Senate press secretary: Jack Devore, a veteran El Paso,
drew little public attention. Often little-publicized and
Texas, television-radio newsman who joined the Bentsen
fundraiser in Ames, Iowa,
Bentsen has opposed President Ford's plan to reduce
Senate staff in 1972.
gave him 23 per cent of the
poorly attended, caucuses were frequently dominated by
oil imports by one million barrels a day, contending that
the state party leadership. But the Democrats' delegate
votes cast in the poll, to 12
this would put 500,000 more Americans out of work.
Bentsen's dissatisfaction with administration foreign
per cent for his nearest rival,
selection reforms overhauled the caucus system, limiting
In early 1975, he outlined his own energy plan. It had
Sen. Hubert H. Humphrey of
the power of the party leadership and opening the process
four basic aspects:
policy has centered on Secretary of State Henry A.
Minnesota. After Humphrey
to incresed rank-and-file participation. As a result, Sen.
A rebatable gas tax, starting at 5 cents a gallon in 1976
Kissinger, who Bentsen feels exercises too much power. In
George McGovern's committed supporters were able to
were Sen. Birch Bayh of In-
and increasing to at least 20 cents a gallon four or five years
February 1975, Bentsen described U.S. foreign policy as
diana, 10 per cent; Sargent
dominate the selection of delegates in many caucus states
later; tied in would be a reduction in withholding taxes for
"dangerously constricted with an undemocratic emphasis
Shriver, 9 per cent, and Rep.
in 1972. First evidence of McGovern's organizational
people of low and middle income.
on secret diplomacy, personal negotiations and one-man
Morris K. Udall of Arizona, 7
strength came in the Iowa precinct caucuses in January
An excise tax on bigger cars, coupled with a tax credit
authoritarianism." In May, he introduced a bill (S 1667) to
per cent. The Udall total was
1972. Against Sen. Edmund S. Muskie (D Maine), the
for automobiles with good gas mileage.
prohibit one person from simultaneously holding the
acknowledged front-runner at the time, McGovern won
positions of secretary of state and assistant to the Presi-
especially surprising because
The creation of an energy development bank to
Udall has been considered
nearly 30 per cent of the vote. Although Muskie received a
guarantee loans for developing new energy sources.
dent for national security affairs-dual roles held by
strong in Iowa.
larger percentage, his failure to defeat McGovern decisively
A five-year tax amortization for converting industries
Kissinger.
Jimmy Carter
Carter's campaign
back. in the Iowa caucuses was noted by the media as a major set-
from oil to coal.
manager, Hamilton Jordan,
Other Issues
said the poll results were not unexpected. "The poll is
-By Rhodes Cook
National Defense
Pension reform: Bentsen considers one of the
satisfying, but not surprising," Jordan told Congressional
When Bentsen entered the Senate in 1971 he was
highlights of his legislative career to be his sponsorship in
Quarterly. "We've been focusing on Iowa and other early
assigned to the Armed Services Committee. He was ex-
pected by many Washington observers to be one of the
1973 and 1974 of a pension reform law (PL 93-406).
states for the last eight to 10 months."
Bentsen's initial bill was worked into the final version,
As reasons for Carter's early success, Jordan cited
Nixon administration's regular supporters on defense is-
sues. But in 1972, Bentsen led the unsuccessful Senate
which established federal standards for private plans.
his candidate's freedom to campaign full-time, his effec-
POLITICAL NOTES
Transportation: Bentsen is chairman of the Public
tiveness in campaigning before small groups, and his
fight against the accelerated construction and deployment
Works Subcommittee on Transportation. In 1973, he was
organization within the state. Carter has already cam-
of the Trident submarine.
paigned in Iowa seven days, has a full-time field organizer
Humphrey Leads in Poll
Senate floor manager of the $20-billion Federal Aid
Although far from an opponent of the defense es-
tablishment, Bentsen has said that the American military
Highway Act (PL 93-87).
in the state, and has a steering committee that includes
Sen. Hubert H. Humphrey (D Minn.) came out as the
could be run more efficiently for less money. In 1973, he
Campaign reform: The Texan introduced an amend-
prominent labor and black leaders, as well as a leading
top choice of Democrats for his party's presidential
ment to the campaign finance reform bill in 1973, setting a
McCarthy supporter from 1968 and Iowa's Democratic
nomination in a Gallup poll released Oct. 27. Humphrey's
cosponsored legislation to create a Defense Manpower
$3,000 limit on individual contributions to a single
gubernatorial nominee from 1974.
showing reversed a result obtained by Gallup in July, when
Commission designed to eliminate waste.
presidential candidate during each primary and general
Jordan noted the importance of Iowa to the Carter
Alabama Gov. George C. Wallace led Humphrey, 23 per
election campaign. The bill passed the Senate but not the
campaign: "Iowa has one of the most liberal Democratic
cent to 20. This time, it was Humphrey 23, Wallace 19.
Foreign Policy
House. When the Federal Election Campaign Act (PL 93-
constituencies in the country. If Carter can sell himself to
Below them came Sen. Henry M. Jackson (Wash.), 11; Sen.
Bentsen has been a strong proponent of increased con-
443) became law the next year, a Bentsen amendment was
the Democrats in Iowa, he can sell himself anywhere."
George McGovern (S.D.), 9; Sen. Edmund S. Muskie
gressional involvement in foreign policy. In both the 93rd
included banning contributions by foreign nations. But the
Jordan expects Carter to campaign in the state two or
(Maine), 9; and former Peace Corps director Sargent
and 94th Congresses, he sponsored bills (S 1472, S 632) re-
new bill reduced the individual contribution ceiling to $1,-
three more times before the Jan. 19 caucuses. While he
Shriver, 8. Sen. Edward M. Kennedy (Mass.), who has said
quiring the submission of executive agreements to
000 per election. Bentsen voted for most of the public
realizes that the poll has increased the expectation level for
he does not want the nomination, was not included in the
Congress for approval. In 1973, he cosponsored the War
financing provisions of the bill.
Carter in Iowa, Jordan is confident.
trial heat. A separate poll with Kennedy included gave him
Powers Act (PL 93-148), which limited authority to com-
Crime: In July, Bentsen introduced a bill (S 2151)
The Udall forces acknowledge Carter's position as
35 per cent, Wallace 14, and Humphrey 13.
mit U.S. forces abroad without congressional approval.
prohibiting possession of a handgun by anyone previously
frontrunner in Iowa, but point out the high expectations
While asserting that he favors detente, Bentsen has
convicted and drawing more than a one-year sentence for a
that go with that status. "Carter is the front-runner," Udall
Mink and O'Hara Announce
taken a hard line toward the Soviets. He suggested that
crime involving a handgun. However, Bentsen has opposed
press secretary Bob Neuman told CQ. "If Carter doesn't
Ford not attend the summit meeting in July 1975 unless the
tighter gun-control legislation, instead favoring stricter
win, he'll be hurt." But another Udall campaign aide
Two veteran House Democrats both said they would
Soviets promised to comply with the principles of the
doubted that Carter's lead was as large as indicated in the
leave that chamber to run for the Senate in 1976. Rep.
punishment and faster trials for criminals.
Helsinki agreement, which prohibits interference in the in-
straw poll. He cited a September poll taken at Iowa's pre-
Patsy T. Mink of Hawaii, first elected in 1964, announced
Civil Rights: He has opposed school busing. In
liminary precinct caucuses which showed Carter and Udall
Oct. 25 that she would challenge Republican Sen. Hiram
ternal affairs of other nations, and Bentsen charged that
August, he voted for a seven-year extension of the Voting
virtually neck-and-neck, with over 40 per cent uncommitted.
L. Fong. On Oct. 28 Rep. James G. O'Hara of Michigan, a
there was a possibility that the Soviets were providing
Rights Act with expanded protection for Spanish-speaking
House member for nine terms, declared his intention to
financial assistance to Communists in Portugal's civil dis-
and other language minorities.
Neuman noted that while the Udall campaign is
turbances.
-By Rhodes Cook
several weeks behind Carter in organizing in Iowa, the
run for the Senate seat being vacated by Democrat Philip
A. Hart.
PAGE 2330-Nov. 1, 1975
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Nov. 1, 1975-PAGE 2331
Foreign Policy/National Security - 2
repeatedly asked for permission to fire on enemy targets
Intelligence Committee:
Foreign Policy/National Security
during the 1971-72 period. Although these requests were
turned down by the Joint Chiefs of Staff because of the
warfare rules promulgated by the Defense Department's
PROBE OF CABLE MONITORING
civilian chiefs, Goldwater said he suspected that approval
for Lavelle's raids had come through channels "right from
Ignoring the protests of the Ford administration, the
the President."
Senate Select Intelligence Committee Oct. 29 initiated an
PROMOTION OF AIR FORCE OFFICER APPROVED
"I have no proof of that," Goldwater added, "but these
unprecedented public investigation of the activities of the
that he believed all along that such preplanned strikes
National Security Agency, a component of the Defense
Holding Air Force Maj. Gen. Alton D. Slay blameless
On July 24, 1975, the Armed Services Committee
orders [from the President] are never broken by men in uni-
Department that is responsible for foreign intelligence
for his role in the unauthorized 1972 bombing of North
routinely approved Slay's nomination for promotion to
form."
gathering by electronic means as well as for developing and
Vietnam that was ordered by a superior, the Senate Oct.
lieutenant general without objection, but the nomination
breaking secret communications codes.
Replied Bayh: "If we are to assume that the President
28 confirmed the nomination of Slay for promotion to
had been held up since then.
had, in some circuitous manner, conveyed these orders, and
Drawing the committee's attention was the agency's
Lieutenant General.
that the President was ordering these strikes, then I think
1967-73 monitoring of international cable and telephone
By approving the promotion on a 49-43 vote, the Senate
Slay's Role
we have to open up this investigation again..
traffic to spot Americans suspected of narcotics dealings,
rejected the arguments of Birch Bayh (D Ind.) that Slay
terrorism and anti-Vietnam war activities.
The unauthorized bombing of North Vietnam occurred
-By David M. Maxfield
"knowingly accepted and ex-
Intelligence committee Chairman Frank Church (D
in 1971 and 1972 at a time when U.S. air missions were
ecuted orders to conduct air
Idaho) called the NSA activities of "questionable propriety
restricted to reconnaissance flights over enemy territory.
strikes in Vietnam contrary"
and legality" and suggested that legislative action was
Under the rules of engagement, accompanying armed es-
to U.S. government regu-
necessary to assure that the NSA did not again intrude into
cort aircraft could fire only when the reconnaissance mis-
lations "and participated
Defense Department Budget
the "inalienable rights guaranteed Americans by the Con-
sion was fired upon or targeted by North Vietnamese ar-
stitution."
in falsification of reports
tillery.
regarding those strikes in
But in late 1971 Gen. Lavelle began ordering
In a severe setback for the Pentagon, the Senate
The committee's vice chairman, John G. Tower (R Tex-
order to conceal them."
Appropriations Defense Subcommittee Oct. 29
as), however, sided with the Ford administration in oppos-
premeditated air strikes, which were in violation of the
Republicans overwhelm-
rules of engagement established by civilian Pentagon of-
recommended a $90.6-billion fiscal 1976 appropriations
ing the public hearings, arguing that disclosure of the agen-
ingly (25-11) voted in favor
ficials. Between November 1971 and February 1972, about
bill for the Defense Department. This amount was
cy's past activities could "adversely affect" the nation's
of his promotion, while a
security.
25 illegal strikes were carried out by Lavelle's 7th Air Force
about $2.2-billion less than that requested Oct. 21 by
majority of Democrats (24-32)
command.
Secretary of Defense James R. Schlesinger and $7.2-
opposed it. (Vote 454, p.
Allen Testimony
As the operations officer for the command, Slay was
billion below the administration's original budget re-
2336)
responsible for planning and executing the missions
quest for military procurement, research and
Outlining the monitoring operations to the committee,
Maj. Gen. Alton D. Slay
Slay was deputy for
operations activities.
NSA Director Lt. Gen. Lew Allen Jr. testified that begin-
operations to Maj. Gen. John
Although the subcommittee added $405.9-million
ning in 1967 such agencies as the CIA, FBI and the Secret
Lavelle in Vietnam early in 1972 when Lavelle, on his own
The basic issue is "whether every
to the $90.2-billion appropriations bill (HR 9861)
Service supplied lists of persons and organizations to the
authority, ordered bombing raids on North Vietnamese
approved by the House Oct. 2, the Defense Department
NSA "in an effort to obtain information which was
targets in violation of the Defense Department's "rules of
subordinate commander. is to be
reportedly had expected at least a $1.5-billion increase
available in foreign communications as a by-product of our
engagement" that restricted strikes to retaliation against
charged with the responsibility of
over the House-passed amount. (House action, Weekly
normal foreign intelligence mission."
enemy attacks.
second-guessing whether the com-
Report p. 2100)
Allen said that the initial purpose of the cable and
Lavelle's actions were investigated by the Senate
Also displeased with the subcommittee's
telephone monitoring was to "determine the existence of
Armed Services Committee in September 1972. However,
mander has authority to issue the
recommendation, which is expected to be considered by
foreign influence" on civil disturbances occurring
he alone was found responsible for the violations and was
order received by the subordinate.'
the full Appropriations Committee Nov. 3-7, were a
throughout the nation. Later, the surveillance was ex-
retired from the Air Force. (1972 Almanac p. 813)
number of liberal Democratic senators who are ex-
panded to include names of persons suspected of drug traf-
Denouncing Bayh's accusations, Strom Thurmond (R
-Sen. Strom Thurmond (R S.C.)
pected to press for further cuts in the bill when it
ficking and acts of terrorism.
S.C.) declared that Slay "was merely executing the orders
reaches the Senate floor.
These so-called "watch lists" covered several categories
issued to him by a superior officer."
The panel's resistance to Schlesinger's demands
of persons of interest to U.S. intelligence agencies, Allen
The basic issue before the Senate, Thurmond
ordered by Lavelle, ordering the pilots to strike North Viet-
was prompted by calculations by the Congressional
explained, including:
suggested, is "whether every subordinate commander. is
namese targets and directing the preparation of falsified
Budget Office that a major increase in defense funds
450 Americans and 3,000 foreigners suspected of illegal
to be charged with the responsibility of second-guessing
reports that showed enemy counteraction when there was
for fiscal 1976 would seriously violate the guidelines
whether the commander has authority to issue the order
none.
set by Congress in May for spending on national securi-
drug Drugs. activities by the Bureau of Narcotics and Dangerous
received by the subordinate."
"He carried out these orders dutifully, though he later
ty programs.
180 American individuals and groups as well as 525
Although Barry Goldwater (R Ariz.) said he saw
stated that he was an expert in the rules of engagement and
Included in the $405.9-million added by the Senate
foreign persons suspected by the Secret Service of en-
"nothing in the activities of General Slay that discredits
that he believed all along that such preplanned strikes
subcommittee to the House bill were: 1) $140-million
dangering President Johnson's security.
him a bit,' Bayh pointed out that Slay had admitted during
violated these rules," Bayh said.
for the purchase of airborne control and warning
30 Americans and about 700 foreigners and groups
the 1972 Lavelle hearings that he knew the rules of engage-
While Slay's supporters stressed that the Air Force of-
systems (AWACS) and 2) $40-million for the operation
suspected by the CIA of extremist and terrorist activities.
ment were violated, and he had falsified reports in viola-
ficer had no choice but to follow Lavelle's orders because of
of the Safeguard antiballistic missile defense system in
20 Americans who had traveled to North Vietnam and
tion of the Uniform Code of Military Justice. "And yet he
the nature of military operations and procedures, Bayh
North Dakota. The subcommittee left to the full com-
were suspected by the Defense Intelligence Agency of being
refused to report this activity to higher authority."
countered that Slay's responsibility actually was to those
mittee consideration of $110-million already in the
links to "possible foreign control or influence on U.S. anti-
Earlier Vote
above Lavelle who had issued the rules of engagement.
House version for advanced research and development
war activity."
"If we have a civilian authority enumerating rules of
of the Navy-Marine F-18 fighter plane.
Between 1967 and 1973, there was a cumulative total of
Goldwater, Thurmond and others who supported
engagement, then do we permit a subordinate military of-
Appropriations Committee Chairman John L.
about 450 names on the narcotics list and about 1,200 U.S.
Slay's promotion insisted that the officer's fitness for
ficer to subvert the intention of that civilian authority?"
McClellan (D Ark.) issued a statement Oct. 29 con-
names on all the other lists combined, Allen stated.
higher rank had been thrashed out by the Senate in 1974
Bayh asked.
tending that the subcommittee's amount would fall
"We estimate that over this six-year period, about 2,-
and that no new facts relating to the 1972 bombings had
within the congressional budget guidelines, but Senate
000 reports were issued by the National Security Agency on
arisen since then.
Approval for Raids
Budget Committee Chairman Edmund S. Muskie (D
international narcotics trafficking and about 1,900 reports
On April 24, 1974, the Senate approved Slay's nomina-
A persistent critic of the rules of engagement es-
Maine) had no immediate comment and said he needed
were issued covering the three areas of terrorism, executive
tion for the rank of permanent major general by a 51-36
tablished during the Vietnam war, Goldwater told the
more time to evaluate the bill in detail.
protection and foreign influence over U.S. groups. These
vote. (Vote 142, 1974 Almanac p. 23-S)
Senate that U.S. commanders in Southeast Asia had
reports included some messages between U.S. citizens, but
(Continued on p. 2339)
PAGE 2332-Nov. 1, 1975
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Nov. 1, 1975-PAGE 2333
Corresponding to Congressional Record Votes 642, 643, 644, 646, 647
CQ House Votes 476-480
477
KEY
Y Voted for (yea)
KANSAS
Randall
YYNYN
9 Martin
NYY?X
Jones
NYNNN
NNNNN
Sebellus
NYYYN
Bolling
YYYYY
Paired
5 Armstrong
10 Broyhill
NYNYN
Ford
YYNYN
t Announced for.
CONNECTICUT
Keys
YYNYN
Litton
???YN
11 Taylor
NYNYN
TEXAS
Cotter
YYYYY
Winn
NYYYN
N Voted against (nay).
Taylor
NNNNN
NORTH DAKOTA
Patman
YYYYY
Dodd
YYYYN
4 Shriver
NYYYN
Ichord
NNNYN
AL Andrews
NYYYN
Wilson
NYNYN N
X Paired against.
YYYYY
NYYYN
Hungate
YYNYY
OHIO
3 Collins
NNNNN
Announced against.
Giaimo
5 Skubitz
McKinney
NYY?X
KENTUCKY
10 Burlison
NYNYN
1 Gradison
NYYYN
4 Roberts
NNNYN
P Voted "present."
Sarasin
X ? ? ? X
Hubbard
NYNNN
MONTANA
Clancy
NYNNN
Steelmen
N + Y Y N
. Voted "present" to avoid
possible conflict of Interest.
Moffett
Y Y N Y N
2 Natcher
Y Y N Y N
Baucus
YYNYN
Whalen
???YY
Teague
YYYYY
3 Mazzoli
YTYYN
Melcher
YYYYY
? Did not vote or otherwise
DELAWARE
Guyer
NYYYN
Archer
NNNYN
AL du Pont
NYNYY
Snyder
NYNNN
NEBRASKA
Latta
NYNNN
8 Eckhardt
YYN?Y
make position known.
NYYYY
NYYYN
FLORIDA
5 Carter
Thona
Harsha
NNYNN
Brooks
YYYYY
Sikes
YYNYN
6 Breckinridge
Y Y N Y
McCollister
NNNYN
Brown
?????
10 Pickle
YYNYY
NYNYN
Perkins
YYYYY
Smith
NYNYN
Fuqua
Kindness
NNYNN
11 Poage
NNNNN
Bennett
NYYYN
LOUISIANA
NEVADA
Ashley
YYYYY
12 Wright
YYNYY
480
YYYNN
Hebert
X?X?"
AL Santini
NYNYN
Chappell
10 Miller
NNYNN
13 Hightower
NYNNN
Kally
??YNN
Boggs
YYYYY
NEW HAMPSHIRE
Stanton
NYYYY
14 Young
YYNYY
NYNNN
3 Treen
NNYYN
D'Amours
Y Y N Y N
12 Devine
NYNNN
15 de Garza
? Y N Y N
Young
Gibbons
NNYNN
4 Waggonner
NNNYY
Cleveland
X777X
13 Mosher
NYYYY
16 White
YYNYN
Haley
NYYNN
5 Passman
NYNYY
JERSEY
14 Seiberling
YYNYY
17 Burleson
NNNYY
ALABAMA
NYNYY
Frey
NYNYN
6 Moore
NYYNN
Florio
Y Y N Y N
Wylle
NYYNN
18 Jordan
YYYYY
Edwards
Dickinson
? ? N N N
10 Bafalls
NYNNN
Breaux
X?X?"
Hughes
YNNYN
16 Regula
N?YYN
19 Mahon
NYNYY
YYNYN
11 Rogers
NYNNN
Long
YYYYY
Howard
YYYYY
17 Ashbrook
NYNNN
20 Gonzalez
YYNYY
Nichols
YYNYN
Burka
X???X
MAINE
Thompson
YYYYY
18 Hays
YYYYN
21 Krueger
NYYYY
476. HR 6227. Federal Employees Right to Representation.
Bevill
Jones
???YY
Lehman
Y @ Y ?
Emery
Y Y N N N
Fenwick
YYYYY
19 Carney
YYYYN
22 Casey
NYNYY
Passage of the bill to provide federal employees under investiga-
??YYN
14 Pepper
YYYYY
Cohen
YYYYN
Forsythe
NNNYY
20 Stanton
YYNYY
23 Kazen
Y Y N Y Y
6 Buchanan
Flowers
YYYYN
15 Fascell
YYYYN
MARYLAND
Maguire
YYYYN
21 Stokes
YYYYY
24 Milford
?????
tion for misconduct the right to representation during questioning
GEORGIA
1 Bauman
NNNNN
Roe
YYYYN
22 Vanik
? ? N Y
UTAH
regarding the alleged misconduct. Passed 217-163: R 15-113; D 202-
ALASKA
YYYYN
23 Mottl
McKay
YYNYY
Young
NYNNN
Ginn
???NN
2 Long
NYN?Y
Helstoski
YYYYN
50 (ND 156-17; SD 46-33), Oct. 28, 1975. A "nay" was a vote sup-
ARIZONA
Mathis
NNNNN
3 Sarbanes
YYYYY
10 Rodino
YYYYY
OKLAHOMA
Howe
YYNNN
porting the President's position.
\
Brinkley
???NN
4 Holt
NNNNN
11 Minish
YYYYY
Jones
YYYNN
VERMONT
Rhodes
Udail
????Y
Levitas
YYYNN
5 Spellman
YYYYN
12 Rinaldo
Y Y N Y N
Risenhoover
NYY?X
AL Jeffords
NYYYY
N?NYN
Young
YYY?Y
6 Byron
NNNNN
13 Meyner
ttnyy
Albert
VIRGINIA
477. HR 8835. Truth in Leasing. Passage of the bill to re-
Stelger
YYY?"
YYYYY
Steed
YYYYY
1 Downing
NYNYY
Conlan
X?NNN
Flynt
NNNYN
Mitchell
14 Daniels
quire companies leasing consumer goods to disclose fully the terms
ARKANSAS
NNNNN
Gude
YYYYY
15 Patten
Jarman
X?NYY
2
NYNYY
and costs of the lease. Passed 339-41: R 98-25; D 241-16 (ND 170-6;
YYNYN
Stuckey
? Y N Y N
MASSACHUSETTS
NEW MEXICO
English
YYNNN
Satterfield
NNNNN
Alexander
Mills
YYY?Y
Landrum
NNN?Y
1 Conte
? Y Y Y
Lujen
X7X7X
OREGON
Daniel
NYNYN
SD 71-10), Oct. 28, 1975. (Story, p. 2324)
YYNYY
10 Stephens
NYNYN
2 Boland
YYYYY
Runnels
NNNYN
AuCoin
NNNYY
Daniel
NYNYN
Hammerschmidt
YYYYY
HAWAII
Early
YYYNN
NEW YORK
Uliman
NYYYY
Butler
NNYYN
Thornton
478. S 2195. National Productivity Center. Passage of the bill
Matsunaga
YYYYY
Drinan
YYYYN
Pike
YYYYY
Duncan
???YY
Robinson
NYNYN
CALIFORNIA
to establish a permanent National Center for Productivity and
Johnson
YYYYY
Mink
?????
Tsongas
YYYYN
Downey
YYYNN
Weaver
YYNYN
8 Harris
YYYYN
Clausen
NYNYX
IDAHO
6 Harrington
YYYYN
Ambro
YYY?N
PENNSYLVANIA
Wampler
NYNYN
Quality of Working Life expand productivity in both the private
YYNYY
Symms
NNNNN
Macdonald
YYYYY
Lent
?????
Barrett
Moss
YY?YY
10 Fisher
YYYYY
and public sectors of the economy. Passed 208-188: R 59-75; D 149-
YYYYY
Hansen, G.
NNNNN
O'Neill
YYYYY
Wydler
NYYYY
Nix
YYYNN
WASHINGTON
Leggett
113 (ND 120-59; SD 29-54), Oct. 28, 1975. (Story, p. 2306)
YYNYN
ILLINOIS
Moakley
YYYY?
Wolff
YYNNN
Green
5 Burton, J.
"???"
1 Pritchard
NYNYY
YYY?Y
Metcalfe
YYYYY
10 Heckler
YYYYN
Addabbo
Eilberg
Burton, P.
YYYYY
2 Meeds
YYYYY
Miller
YYNYN
2 Murphy
YYYYY
11 Burke
YYYYN
Rosenthal
YYYYN
Schulze
NYYYN
Bonker
YYYYN
479. HR 10049. Debt Limit Extension. Adoption of the rule (H
YYYYN
3 Russo
YYNNN
Studds
YYNYN
Delaney
YYNYY
Yatron
4 McCormack
NYYYY
Dellums
Res 828) providing for House floor consideration of the bill to ex-
Stark
YYYYY
Derwinski
NYNYY
MICHIGAN
Biaggi
YYNYN
Edgar
YYYYY
Foley
NYYYY
tend the temporary federal debt limit through March 31, 1976, at a
10 Edwards
YYYYY
Fary
77775
Conyers
YYYYN
11 Scheuer
??YNN
Blester
YYNYY
Hicks
YYYYY
NYNYY
Hyde
NYNYN
Esch
?????
12 Chisholm
YYYYY
Shuster
11 Ryan
NNN?N
7 Adams
NYNYY
$597-billion level. Adopted 320-70: R 94-36; D 226-34 (ND 165-15;
12 McCloskey
YYNYY
7 Collins
YYYYY
3 Brown
NYYYN
13 Solarz
- ? ? ?
10 McDade
WEST VIRGINIA
SD 61-19), Oct. 29, 1975. (Story, p. 2305)
YYYYY
8 Rostenkowski
YYYYY
4 Hutchinson
NYNYN
14 Richmond
YYYYN
Flood
13 Mineta
YYYYY
Mollohan
NYYYY
YYYYY
9 Yates
YYYYY
Vander Veen
YYNYY
15 Zeferetti
YYNYN
12 Murtha
YYYYN
2 Staggers
YYYYY
McFall
"???"
10 Mikva
YYNYY
Carr
YYNNN
16 Holtzman
YYYNN
480. HR 10049. Debt Limit Extension. Passage of the bill to ex-
15 Sisk
13 Coughlin
NYNYN
Slack
NYYYY
16 Talcott
NYNYN
Annunzio
"?"?"
Riegle
YYY?"
17 Murphy
/3/22
Moorhead
YYYYY
4 Hechier
YYNNN
tend the temporary federal debt ceiling through March 31, 1976,
17 Krebs
YYYYN
12 Crane
NNNNN
Traxler
YYNYY
18 Koch
YYYYY
15 Rooney
YYYYY
WISCONSIN
and raise the limit to $597-billion from $577-billion. Rejected 178-
18 Ketchum
????X
13 McClory
NYYYY
9 Vander Jagt
NYYYY
19 Rangel
YYYYY
16 Eshieman
NYYYN
Aspin
YYNYN
14 Erlenborn
NYYYY
10 Cederberg
X?NYY
20 Abzug
17 Schneebell
NYNYY
Kastenmeier
YYNYN
217: R 42-87; D 136-130 (ND 106-77; SD 30-53), Oct. 29, 1975. (Story,
19 Lagomarsino
NYNNN
NYNNN
15 Hall
YYYYY
11 Ruppe
NYYYY
20 Goldwater
21 Badillo
YYYYY
18 Hainz
YYY??
Baldus
YYYYN
p. 2305)
YYYYY
16 Andarson
YYYYY
12 O'Hara
YYN?
22 Bingham
YYYYY
21 Corman
19 Goodling, W.
NYYYN
Zablocki
YYYYY
22 Moorhead
NYNNN
17 O'Brien
NYNYY
13 Diggs
YYYN
23 Peyser
YYYYY
20 Gaydos
YYYNN
Reuss
YYYYY
23 Rees
YYYY?
18 Michel
NYYYY
14 Nedzi
27775
24 Ottinger
YYYYY
21 Dent
YYNYN
Stelger
NYYNY
15 Ford
???YY
24 Waxman
YYYYY
19 Rallsback
NYYYY
25 Fish
YYYYN
22 Morgan
YYYYY
Obey
YYYYY
25 Roybal
YYYYY
20 Findley
NYNYY
16 Dingell
YYNYN
26 Gliman
23 Johnson
NYYYY
Cornell
YYYYY
26 Rousselot
NNNNN
21 Madigan
YYYYY
17 Brodhead
27 McHugh
YYYYY
24 Vigorito
???YY
Kasten
NYNNN
27 Bell
NYNYN
22 Shipley
NYYYY
18 Blanchard
YYYNN
28 Stratton
??YYY
25 Myers
NYNYY
WYOMING
28 Burke
YYYYY
23 Price
YYYYY
19 Broomfield
NYYYY
29 Pattison
YNNYN
RHODE ISLAND
AL Roncalio
? ? N Y N
29 Hawkins
YYYYY
24 Simon
YYYYY
MINNESOTA
30 McEwen
NNYYY
Germain
YYYYY
NYNYN
30 Danielson
YYNYN
INDIANA
Quie
31 Mitchell
NYYYN
Beard
TY?YY
31 Wilson
YYYYN
Madden
YYYYY
2 Hagedorn
NYNYN
32 Hanley
YYYYY
SOUTH CAROLINA
32 Anderson
YYYNN
Fithian
YYYYN
3 Frenzel
NYNYY
33 Walsh
NYNYN
Davis
YYYNN
33 Clawson
NYNNN
Brademas
YYYYY
Karth
34 Horton
N ? ? ? ?
Spence
NYNNN
34 Hannaford
YYYYY
Roush
YYYYY
Fraser
?????
35 Conabla
NNNYY
Derrick
Y Y N Y N
35 Lloyd
NYNYN
Hillis
NYYYN
6 Nolan
YYNYN
36 LaFalce
YYYYN
Mann
Y Y N Y N
36 Brown
YYYYY
Evans
YYYNN
7 Bergland
YYYYY
37 Nowak
YYYYN
Holland
YYYNN
37 Pattis
NYNYY
Myers
NNNYN
8 Oberstar
YYYYY
38 Kemp
NYNYN
Jenrette
YYNYX
38 Patterson
YYNYN
Hayes
YYYYY
MISSISSIPPI
39 Hastings
NNYYN
SOUTH DAKOTA
39 Wiggins
X7X7V
Hamilton
? Y Y Y
Whitten
NYNYN
NORTH CAROLINA
Prassler
YYYNN
40 Hinshaw
NYNYX
10 Sharp
YYNYY
2 Bowen
NYNYN
Jones
NYNYN
Abdnor
NYNYN
41 Wilson
NYYYY
Jacobs
YYNYN
3 Montgomery
NYNYN
Fountain
YYNYN
TENNESSEE
42 Van Deerlin
YYYYY
IOWA
4 Cochren
NNYYN
Henderson
YYNYN
Quillen
NONYN
43 Burgener
NYNYN
Mezvinsky
YYNYY
5 Lott
NNYYN
Andrews
? Y N Y N
Duncan
NYNYN
COLORADO
Blouin
YYNYN
MISSOURI
Neal
YYNYN
Lioyd
NYNNN
Schroeder
YYNYN
Grassley
NYNNN
Clay
YYY?Y
Preyer
YYYYY
Evins
YYNYN
Wirth
??"YN
Smith
Y Y N Y Y
2 Symington
???YX
Rose
NYNYN
Vacancy
Evans
YYNYY
Harkin
YYNYN
3 Sullivan
YYNYN
Hefner
YYNYN
Beard
NYNYN
4 Johnson
NNNNN
Bedell
NYNYN
Democrats
Republicans
Democrats
Republicans
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
PAGE 2334-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
Reproduction prohibited or except by editorial clients
Nov. 1, 1975-PAGE 2335
Reproduction prohibited whole or in part except editorial clients
CQ Senate Votes 453-457
Corresponding to Congressional Record Votes 453, 459, 460, 461, 462
CQ House Votes 481-484
KEY
KEY
482
ALABAMA
IOWA
NEW HAMPSHIRE
Y Voted for (yea)
Allen
YYYYN
Clark
YNNNY
Durkin
YNNNY
Y Voted for (yea)
Paired for
Sparkman
YYYYY
Culver
YNNNY
Paired for.
5 Armstrong
NYYN
YNNNY
Mcintyre
t Announced for
ALASKA
KANSAS
NEW JERSEY
t
Announced for.
CONNECTICUT
YNNNY
YYYNY
Williams
YNNYY
N Voted against (nay).
N Voted against (nay).
Cotter
NNNN
Gravel
Dole
X Paired against.
Stevens
YYNYY
Pearson
YNNYY
Case
YNNYY
X Paired against.
Dodd
NNNN
Announced against.
KENTUCKY
Announced against.
Giaimo
NNYN N
ARIZONA
NEW MEXICO
P
Voted "present."
Fannin
YYYYN
Ford
???YY
P
YPYYY
Montoya
Voted "present.
McKinney
NNNY
Voted "present" to avoid
Goldwater
YYYYN
Huddleston
YNYNY
Domenici
YYNNY
Voted "present" to avoid
5 Sarasin
NNNY
possible conflict of interest.
possible conflict of interest
6 Motfett
NNNY
ARKANSAS
LOUISIANA
NEW YORK
?
Did not vote or otherwise
Bumpers
YYNYY
Johnston
YYNNY
Buckley*
? ? N N Y
? Did not vote or otherwise
DELAWARE
make position known.
McClellan
YYYNY
Long
YYNNY
make position known.
AL du Pont
Javits
YNNYY
YNNY
FLORIDA
CALIFORNIA
MAINE
NORTH CAROLINA
Sikes
N ? V X
Cranston
YNNNY
Hathaway
YNNNY
Morgan
YYYYY
YYYYN
Fuqua
NNNY
Tunney
YNNNY
Muskie
YNNNY
Helms
Bennett
NYNY
COLORADO
MARYLAND
NORTH DAKOTA
YNNY?
Chappell
N ? V X
Hart
YYNNY
Beall
Burdick
YYYNY
Haskell
YNNNY
YYYYY
5 Kelly
NYYN
Mathias
YNNY?
Young
Young
NNYN
CONNECTICUT
MASSACHUSETTS
OHIO
TEXAS
Gibbons
NNNY
Ribicoff
YNNNY
Kennedy
YNNNY
Glenn
YYYNY
Bentsen
YN?YY
NYNY
Welcker
YNNNY
Brooke
YNNNY
Taff
Y??YY
Tower
Y Y N N Y
ALABAMA
Haley
OKLAHOMA
UTAH
1 Edwards
YNYN
Frey
NNYY
DELAWARE
MICHIGAN
Biden
YN?YY
Hart
?????
Bartlett
Moss
2 Dickinson
NYYN
10 Bafalls
NYYY
YYNY?
YYNNY
YNNYN
Griffin
YYYYY
Bellmon
Y Y N N N
Garn
YYYYY
481. HR 8603. Postal Reorganization. Hanley (D N.Y.) amend-
Nichols
NNNY
11 Rogers
NNNY
Roth
OREGON
VERMONT
ment to delete the previously adopted Alexander amendment,
Bevill
NYNY
12 Burke
X??X
FLORIDA
MINNESOTA
Chiles
YYNNY
Humphrey
YNNYY
Hatfield
YNNYY
Leahy
YNYNY
adopted Sept. 29 (see vote 418, Weekly Report p. 2136), and add
5 Jones
YNNY
13 Lehman
YNNY
Stone
YNNYY
Mondale
YNNYY
YNYYY
YYNYY
6 Buchanan
NYNY
14 Pepper
YNNY
Packwood
Stafford
PENNSYLVANIA
VIRGINIA
new language to require annual congressional authorization and
Flowers
YNNY
15 Fascell
YNNY
GEORGIA
MISSISSIPPI
Nunn
YYYNY
Eastland
YYYNN
Schwelker
YNNYY
Byrd**
YYYNN
appropriation of public service funds for the Postal Service that ex-
ALASKA
GEORGIA
Talmadge
YYYNY
Stennis
?????
Scott
YYNNY
Scott
YYYNN
ceeded the $920-million-a-year authorized under existing law, to
AL Young
YNNY
1 Ginn
NNNY
HAWAII
MISSOURI
RHODE ISLAND
WASHINGTON
authorize $1.5-billion in additional public service funds for fiscal
ARIZONA
2 Mathis
NYYN
YNNNY
Pastore
Y Y N N Y
Y Y N N Y
Rhodes
????
3 Brinkley
NYYY
Inouye
? ? Y Y
Eagleton
Jackson
Fong
YYYYY
Symington
YYNNY
Pell
YNNNY
Magnuson
YNYNY
1976, and to limit to 2 cents a proposed raise in the first-class
Udall
????
4 Levitas
YNNN
IDAHO
MONTANA
SOUTH CAROLINA
WEST VIRGINIA
postage rate. Rejected 196-207: R 21-113; D 175-94 (ND 144-39; SD
Stelger
NYYN
5 Young
Y???
Church
YNYNY
Mansfield
YNYNY
???NY
YYYYY
31-55), Oct. 30, 1975. (Story, p. 2341)
Conian
NYYN
6 Flynt
NYYN
Hollings
Byrd
ARKANSAS
7 McDonald
NYYN
McClure
YYNNN
Metcalf
YN? N Y
Thurmond
YYYYY
Randolph
YYYNY
Alexander
NNNY
8 Stuckey
NYNN
ILLINOIS
NEBRASKA
SOUTH DAKOTA
WISCONSIN
Stevenson
YNNNY
Curtis
YYNY?
Abourezk
YNNNY
Nelson
YNNY?
482. HR 8603. Postal Reorganization. Rousselot (R Calif.)
Mills
NNNY
9 Landrum
N?VX
Percy
YYNNY
Hruska
Y Y ? N Y
Proxmire
YNNNY
amendment to repeal the federal statutes that give the Postal Ser-
3 Hammerschmidt
NYNY
10 Stephens
NNNY
YYYYY
McGovern
NNNY
HAWAII
INDIANA
NEVADA
TENNESSEE
WYOMING
vice a monopoly on processing first-class mail, and allow private
Bayh
YN?YY
Cannon
Y Y N Y Y
Y Y N N Y
CALIFORNIA
Matsunaga
YNNY
YYY??
Baker
McGee
YNNYY
YYYYY
Brock
Y Y N Y Y
companies to compete with it in delivering first-class mail. Re-
Johnson
YNNY
2 Mink
????
Hartke
Lexalt
Hansen
Y Y N Y Y
jected 68-319: R 53-73; D 15-246 (ND 5-176; SD 10-70), Oct. 30, 1975.
Clausen
X ? ? ?
IDAHO
Moss
-???
Symms
NYYN
Democrats
Republicans
*Buckley elected as Conservative
**Byrd elected as independent.
(Story, P. 2341)
Leggett
Y ? ? ?
2 Hansen, G.
NYYN
Burton, J.
YNNN
ILLINOIS
483. HR 8603. Postal Reorganization. Derwinski (R III.) mo-
Burton. P.
YNX?
1 Metcalfe
Y N ? ?
tion to recommit the bill to the House Post Office and Civil Service
Miller
YNNY
Murphy
YNNY
Dellums
YNNY
Russo
NNYN
Committee with instructions that the committee hold additional
Stark
YN?X
4 Derwinski
NNYN
hearings on the legislation. Rejected 129-250: R 91-29; D 38-221 (ND
10 Edwards
YNNY
5 Fary
????
22-156; SD 16-65), Oct. 30, 1975. (Story, p. 2341)
Ryan
NNNY
6 Hyde
NNYN
12 McCloskey
NNYN
7 Collins
NNNY
453. Treaties. Resolutions of ratification of the following
455. HR 12. Executive Protective Service. Morgan (D N.C.)
13 Mineta
YNNY
Rostenkowski
YNNY
484. HR 8603. Postal Reorganization. Passage of the bill to re-
McFall
YNNY
Yates
YNNY
treaties: Convention on the International Regulations for
amendment to delete provisions in the bill which would authorize
quire the U.S. Postal Service to go to Congress each year for all its
Sisk
1732
10 Mikva
YNYN
Preventing Collisions at Sea, 1972 (Exec. W, 93rd Cong., 1st sess.);
up to $3.5-million annually to certain large cities to protect visiting
foreign dignitaries. Rejected 33-57: R 13-24; D 20-33 (ND 10-28; SD
appropriations-thus taking away the financial independence
16 Talcott
NNYN
11 Annunzio
?XV
Amendments to the International Convention for the Safety of
Krebs
YNYN
12 Crane
NYYN
10-5), Oct. 28, 1975. (The bill to extend the Executive Protective
given it in the Postal Reorganization Act of 1970-and reducing the
18 Ketchum
NYYN
13 McClory
NNYY
Life at Sea (Exec. K, 93rd Cong., 2d sess.); Convention on the
Postal Service's proposed first-class rate increase to 2 cents, rais-
NYYN
14 Erlenborn
NY??
Prevention and Punishment of Crimes against Internationally
Service and provide protection for foreign dignitaries was subse-
19 Lagomarsino
ing the postage a first-class letter to 12 cents instead of 13 cents.
20 Goldwater
NN??
15 Hall
YNNY
Protected Persons, including Diplomatic Agents (Exec. L, 93d
quently passed by voice vote.)
21 Corman
YNNY
16 Anderson
X???
Passed 267-113: R 52-68; D 215-45 (ND 154-25; SD 61-20), Oct. 30,
22 Moorhead
NYYN
17 O'Brien
NNYY
Cong., 2d sess.); Protocol for the Continuation in Force of the Inter-
1975. (Story. P. 2341)
23 Rees
YNNY
18 Michel
NNYN
national Coffee Agreement (Exec. B, 94th Cong., 1st sess.); Agree-
456. S 1259. Small Business Relief. Brock (R Tenn.) amend-
24 Waxman
YNNY
19 Ralisback
NNNY
ment between United States and Brazil establishing basis for
ment to authorize the Department of Housing and Urban Develop-
25 Roybal
YNNY
20 Findley
NYYY
shrimp fishing off Brazil (Exec. D, 94th Cong., 1st sess.); and
26 Rousselot
NYYN
21 Madigan
NYYY
ment to deal with escalating construction costs by making ad-
27 Bell
NN??
22 Shipley
YNNY
Amendments to the Convention on the Intergovernmental
justments in the amount of mortgage insurance commitments and
28 Burke
YNNY
23 Price
YNNY
Maritime Consultative Organization (Exec. F, 94th Cong., 1st
annual contribution contracts with respect to public housing. Re-
29 Hawkins
NNY
24 Simon
YNNY
sess.). Adopted 94-0: R 37-0; D 57-0 (ND 41-0; SD 16-0), Oct. 28,
30 Danielson
NNNY
INDIANA
jected 44-53: R 27-11; D 17-42 (ND 10-32; SD 7-10), Oct. 30, 1975.
31 Wilson
YNNY
1 Madden
N???
1975. A "yea" was a vote supporting the President's position.
32 Anderson
YNNY
2 Fithian
NNNY
(Story, p. 2340)
33 Clawson
NYYN
3 Brademas
YNNY
457. HR 5541. Small Business Relief. Passage of the bill to
34 Hannaford
YNYN
4 Roush
YNNY
YNYY
454. Slay Confirmation. Confirmation of the nomination of Air
authorize cancellation of fixed-price government contracts with
35 Lloyd
NYNY
5 Hillis
36 Brown
YNNY
6 Evans
NNNY
Force Maj. Gen. Alton D. Slay for promotion to lieutenant general.
small business firms that suffered serious financial losses because
37 Pattis
NNYN
7 Myers
YNYN
Confirmed 49-43: R 25-11; D 24-32 (ND 12-29; SD 12-3), Oct. 28,
of unanticipated cost increases. Passed 82-10: R 27-7; D 55-3 (ND
38 Patterson
YNYY
8 Hayes
YNNY
1975. (Story, p. 2332)
41-0; SD 14-3), Oct. 30, 1975.
39 Wiggins
NNYN
9 Hamilton
YNNY
40 Hinshaw
X ? ? Y
10 Sharp
NNYN
41 Wilson
NNNY
11 Jacobs
NNYN
42 Van Deerlin
YNNY
IOWA
43 Burganer
NYYN
1 Mezvinsky
YNNY
COLORADO
2 Blouin
YNYY
1 Schroeder
YYYN
3 Grassley
NYYN
Wirth
NNYN
4 Smith
YN??
Evans
YNNY
5 Harkin
YNNY
Johnson
NYYY
6 Bedell
YNYN
Democrats
Republicans
PAGE 2336-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
COPYRIGHT 1975 CONGRESSIONAL INC.
Reproduction whole or in part except by editorial clients
Reproduction prohibited in whole part except by editorial clients
Nov. 1, 1975-PAGE 2337
Corresponding to Congressional Record Votes 649, 650, 651, 652
Foreign Policy/National Security 3
(FOREIGN POLICY/NATIONAL SECURITY continued from p. 2333)
482
483
482
483
481
482
483
Sadat To Address Joint Session of Congress
KANSAS
Randall
NNNY
9 Martin
X???
Jones
NNNY
Sebellus
NNYN
Bolling
YNNY
10 Broyhill
NYYN
Ford
YNNY
Keys
Litton
11 Taylor
Egyptian President Anwar Sadat is to wind up his
General Assembly before the end of its 1975 session.
NNNY
YNYY
NNNY
TEXAS
Winn
YYYY
Taylor
NYYN
NORTH DAKOTA
Patman
YNNY
10-day visit to the United States with an address to a
Zionism is the belief in a Jewish homeland in Palestine.
Shriver
YNYY
Ichord
NNNY
AL Andrews
YNNY
Wilson
NNNY
joint session of Congress Nov. 5 and a luncheon hosted
In a related action, New York Mayor Abraham D.
Skubitz
NNYN
9 Hungate
NNNY
OHIO
Collins
NYYN
KENTUCKY
10
Burlison
NNNY
Gradison
NYYN
Roberts
NNNY
by the congressional foreign affairs committees. Sadat
Beame (D) and Gov. Hugh L. Carey (D) refused to of-
Hubbard
YNNY
MONTANA
Clancy
NYYN
5 Steelman
NNNN
arrived Oct. 26.
ficially welcome Sadat because of the Egyptian support
Natcher
YNNY
Baucus
YNYN
3 Whalen
YNNY
6 Teague
№ ? и х
Mazzoli
YNNY
2 Melcher
YNNY
4 Guyer
X ? ? X
7 Archer
NYYN
Sadat's trip, the first official visit by an Egyptian
for the anti-Zionist resolution. Beame is the city's first
Snyder
NYYN
NEBRASKA
5 Latte
NYYN
8 Eckhardt
YNNY
head of state, symbolized the new warmth in
Jewish mayor. Sadat flew to New York Oct. 29 to
Carter
NNNY
1 Thone
NNYN
6 Harsha
YYNY
9 Brooks
NNNY
6 Breckinridge
NNNY
2 McCollistar
10 Pickle
Washington-Cairo relations after the signing of an
address the United Nations and was greeted by the U.S.
NNYN
7 Brown
????
NNNY
Perkins
YNNY
3 Smith
NNYN
8 Kindness
NYYY
Poage
NYNN
Egyptian-Israeli interim peace agreement negotiated
ambassador to the U.N., Daniel P. Moynihan. From New
LOUISIANA
NEVADA
9 Ashley
NNYN
12 Wright
NNNY
through the shuttle diplomacy of Secretary of State
York, Sadat was to travel to Chicago, Houston and
Hebert
X?XV
AL Santini
10 Miller
NNYN
13 Hightower
NNNY
Boggs
YNNY
NEW HAMPSHIRE
11 Stanton
NNYY
14 Young
NNNY
Henry A. Kissinger.
Jacksonville, Fla., before returning to Washington
Treen
NNYN
1 D'Amours
NNNY
12 Devine
NYYN
15 de Garza
NNNY
Although Sadat's official welcome was warm, other
Nov. 4.
Waggonner
NNYN
2
X ? ? ?
13 Mosher
NNYY
16 White
NNNY
Passman
NEW JERSEY
14 Seiberling
YNNY
17 Burleson
NYNN
incidents during his visit were reminders of the gaps
Moore
NYYN
Florio
YNNY
15 Wylle
N??X
18 Jordan
YNNY
that remained in U.S. relations with the Arab world.
Major Issues
Breaux
Х?ИХ
Hughes
NNYN
16 Regula
NNYY
19 Mahon
NNNN
Long
YNNY
3 Howard
YNNY
17 Ashbrook
N???
20 Gonzalez
YNNY
Despite the thaw in U.S.-Egyptian reslations since
MAINE
4 Thompson
Y?NY
18 Hays
NNNY
21 Krueger
YNNY
Senate Resolution
the 1973 Arab-Israeli war, Sadat has stuck to his posi-
Emery
NNYN
5 Fenwick
NNYN
19 Carney
YNNY
22 Casey
NNNN
Cohen
NNNY
6 Forsythe
20 Stanton
YNNY
23 Kazen
On Oct. 28, Sadat met with Ford and Defense
tion on the Palestinian issue. In numerous speeches and
NN?
YNNY
MARYLAND
7 Maguire
YNYN
21 Stokes
YNNY
24 Milford
NNNN
Bauman
8 Roe
22 Vanik
Secretary James R. Schlesinger, attended a luncheon in
press conferences since he arrived Oct. 26, Sadat urged
NYYN
YNNY
YNNY
UTAH
Long
NYNY
9 Helstoski
YNNY
23 Mottl
YNNN
McKay
YNNY
his honor given by Kissinger, and hosted a dinner in
the reconvening of a Geneva conference of the major
Sarbanes
YNNY
10 Rodino
YNNY
OKLAHOMA
Howe
N
Holt
NNYN
11 Minish
YNNY
YNYN
VERMONT
honor of Ford. On the same day, the Senate passed by
powers to work out a Middle East solution-with the in-
Jones
unanimous voice vote a resolution (S Res 288) expressing
clusion of the Palestine Liberation Organization (PLO).
Spellman
YNNY
12 Rinaldo
YNNY
2 Risenhoover
NNYY
AL Jeffords
NNYN
Byron
NNNN
13 Meyner
YNNY
3 Albert
VIRGINIA
the Senate's condemnation of a resolution adopted by a
The United States opposes that proposal unless the PLO
Mitchell
YNNY
14 Daniels
Y ? X V
4 Steed
YNYN
Downing
NNYY
Gude
YNNY
15 Patten
YNNY
5 Jarman
NYYN
NNYY
United Nations committee classifying Zionism as a form
recognizes the territorial integrity of Israel. Sadat said
2
MASSACHUSETTS
NEW MEXICO
6 English
NNNY
3
NNYN
of racism. S Res 288 was introduced by Hubert H.
the issue of a home for the Palestinians was at the core
1 Conte
YNNY
1 Lujan
X??X
OREGON
4 Daniel
NNYN
of the Middle East problem and that there could be no
Boland
YNNY
2 Runnels
NNVN
AuCoin
YNNY
Daniel
NNYN
Humphrey (D Minn.) and had 53 cosponsors by the time
final solution until it was resolved.
Early
YNNY
YORK
Ullman
YNNY
6 Butler
NNYY
it was passed. A similar measure in the House (H Res
Drinan
YNNY
Pike
YNNY
3 Duncan
YNNY
Robinson
NYYN
5 Tsongas
2 Downey
YNNY
8 Harris
YNNY
793) was introduced by Majority Leader Thomas P.
Another purpose of Sadat's visit to the United
YNNY
YNNY
4 Weaver
6 Harrington
YNNY
3 Ambro
PENNSYLVANIA
9 Wampler
NNNY
O'Neill Jr. (D Mass.) and had 431 cosponsors.
States was to discuss more American military and
YNNY
Macdonaid
NNNY
Lent
NNYY
Barrett
VIXV
10 Fisher
YNNY
economic assistance and to encourage U.S. investment
O'Neill
YNNY
Wydler
NYYY
Nix
YNNY
WASHINGTON
in Egypt. said he had not come with a shopping list of
9 Moakley
YNNY
Wolff
YNNY
3 Green
??V
Pritchard
YNNY
U.N. Resolution
10 Heckler
YNNY
Addabbo
YNNY
Eilberg
YNNY
2 Meeds
Y?NY
items his country wanted, but that Egypt did wish to
11 Burke
YNNY
8 Rosenthal
YNNY
5 Schulze
NYYN
3 Bonker
YNNY
The Zionist resolution was adopted Oct. 17 by the
purchase arms rather than seek military grants. Presi-
Studds
YNNY
Delaney
YNNY
Yatron
YNNY
4 McCormack
YNNY
U.N. Social, Humanitarian and Cultural Committee by a
dent Ford's recommendations for military assistance
MICHIGAN
Biaggi
YNNY
Edgar
YNNY
Foley
?NNY
Conyers
- ? ?
11 Scheuer
YNNY
Biester
YNNY
Hicks
YNYN
70-29 vote at the urging of Arab and Communist
and aid to the Middle East for fiscal 1976 was sent to
Esch
NN??
12 Chisholm
YNNY
9 Shuster
NYYN
Adams
NNYN
nations, including Egypt. It is to be voted on by the U.N.
Congress Oct. 30.
3 Brown
NNYN
13 Solarz
??V
10 McDade
NNNY
WEST VIRGINIA
Hutchinson
NNYN
14 Richmond
YNNY
11 Flood
YNNY
1 Mollohan
YNNY
5 Vander Veen
YNNY
15 Zeferetti
YNNY
12 Murtha
YNNY
2 Staggers
NNNY
Carr
NNNY
16 Holtzman
NNNY
13 Coughlin
NNNY
3 Slack
YNYN
over 90 per cent had at least one foreign communicant and
the surveillance was "terminated officially in the fall of
Riegle
YNNY
17 Murphy
?XV
14 Moorhead
YNNY
NYYN
8 Traxler
YNNY
18 Koch
YNNY
15 Rooney
NNY
WISCONSIN
all messages had at least one foreign terminal," Allen
1973," he acknowledged that the NSA continues to pick up
9 Vander Jagt
N???
19 Rangel
YNNY
16 Eshieman
N??X
Aspin
YNNY
testified.
communications between U.S. citizens, in situations where
10 Cederberg
NYYY
20 Abzug
?XV
17 Schneebell
NN??
2 Kastenmeier
NNNY
11 Ruppe
N???
21 Badillo
YNNY
18 Heinz
NNNY
Termination
one party was at an overseas location, in the course of its
3
YNNY
O'Hara
YNNY
22 Bingham
YNNY
19 Goodling, W.
NYYY
4 Zablocki
YNNY
authorized overseas intelligence monitoring.
Diggs
YNNY
23 Peyser
Y ? ? ?
20 Gaydos
YNNY
5 Reuss
YNNY
Concern over the NSA's role in the intelligence gather-
"It necessarily occurs that some circuits which are
Nedzi
YNNY
24 Ottinger
YNNY
21 Dent
NNNY
6 Stelger
N???
ing operation first arose in 1973 after the CIA terminated
15 Ford
YNNY
25 Fish
NNNY
22 Morgan
YNNY
Obey
YNNY
known to carry foreign communications necessary for
16 Dingell
YYYY
26 Gliman
NYYY
23 Johnson
NNNY
8 Cornell
YNNY
its connection with the "watch lists" because of a statutory
foreign intelligence will also carry communications
17 Brodhead
YNNY
27 McHugh
YNNY
24 Vigorito
NNNY
9 Kasten
NYYN
ban on CIA domestic activities.
18 Blanchard
YNNY
28 Stratton
YNNY
25 Myers
NNYN
WYOMING
between U.S. citizens," Allen stated. But this interception
19 Broomfield
NNYY
29
Pattison
RHODE ISLAND
AL Roncalio
On Oct. 1, 1973, then-Attorney General Elliot L.
YNNY
"is conducted in such a manner as to minimize the un-
MINNESOTA
30 McEwen
NYYN
Germain
YNNY
Richardson wrote Allen that he was concerned with the
Quie
NNYN
YNNY
wanted messages; nevertheless, many unwanted com-
31 Mitchell
Y ? ? ?
2 Beard
propriety of requests for information concerning U.S.
Hagedorn
NYYN
32 Hanley
YNNY
SOUTH CAROLINA
munications are potentially available for selection," he ex-
Frenzel
NYYN
33 Walsh
NNNY
Davis
NNNY
citizens that NSA had received from the FBI and the Secret
plained.
Karth
YNNY
34 Horton
7774
2 Spence
NNYN
Service.
Fraser
????
35 Conable
NNYN
3 Derrick
YNYN
Nolan
YNNY
36 LaFalce
YNNY
Mann
NNYN
The letter, which ordered a halt to the monitoring,
Operation Shamrock
Bergland
YNNY
37 Nowak
YNNY
Holland
N ? Y Y
stated: "Until I am able to more carefully assess the effect
8 Oberstar
YNNY
38 Kemp
NYYN
6 Jenrette
YNNY
MISSISSIPPI
39 Hastings
NNYY
SOUTH DAKOTA
of Supreme Court decisions concerning electronic sur-
Following Allen's appearance, the intelligence com-
Whitten
NNYN
NORTH CAROLINA
Pressier
NYYN
veillance upon your current practice of disseminating to the
mittee debated whether to release a report on another
2 Bowen
NNNY
Jones
YNNY
Abdnor
NNYY
FBI and Secret Service information acquired by you
3 Montgomery
NNNN
Fountain
NNNY
TENNESSEE
aspect of NSA's activities that Church said "appeared to be
Cochran
YNYN
Henderson
YNNY
1 Quilien
Y
through electronic devices pursuant to requests from the
unlawful."
Lott
NNYN
Andrews
NNNY
2 Duncan
YYNY
FBI and Secret Service, it is requested that you immediate-
This activity, labeled "Operation Shamrock," could be
MISSOURI
Neal
NNYN
Lloyd
NNNY
Clay
YNNY
Preyer
YNNY
Evins
YNNY
ly curtail the further dissemination of such information to
revealed without disclosing sensitive NSA work, Church
Symington
YNNY
Rose
YNNY
5 Vacancy
these agencies."
said. The committee had voted the previous day to disclose
Sullivan
Hefner
Y
6 Beard
NYYN
Although Allen told the committee that the NSA then
the details of the project, which was reported to involve the
stopped accepting "watch lists" from the agencies and that
agency's arrangement with private communications com-
Democrats
Republicans
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
PAGE 2338-Nov. 1, 1975
Reproduction prohibited whole part except by editorial clients
part except by editorial chents
Nov. 1, 1975-PAGE 2339
Foreign Policy/National Security 4
panies for monitoring international cables. "The case at
providing security for U.S. government communications as
hand relates to unlawful conduct of companies in this
well as seeking intelligence from foreign electronic com-
country," Church disclosed.
munications.
Transportation and Communications
The Ford administration has insisted that the report
The agency is under the jurisdiction of the Department
not be released, and Tower as well as committee member
of Defense because most of the NSA's work involves
Barry Goldwater (R Ariz.) objected to its disclosure.
military communications.
"I do believe the people's right to know should be sub-
Foreign intelligence obtained from electronic and
ordinated to the people's right to be secure," said Tower,
electrical signals also is released to other government agen-
HOUSE VOTES FOR CONTROLS OVER POSTAL SERVICE
who added that disclosure would "adversely affect our
cies, such as the State Department and CIA, in response to
intelligence-gathering capability."
their authorized requirements for intelligence.
The House Oct. 30 responded to mounting complaints
Floor Action
The committee met later in the day behind closed doors
Although the NSA is restricted to monitoring foreign
about the inefficiency of the U.S. Postal Service by affirm-
to settle the issue and agreed to submit the report on
communications, this term has never been defined, ac-
ing a decision made earlier in the session to return the
The House adopted six amendments and rejected nine
Shamrock to Gen. Allen for his comment on whether its
cording to Allen, who said the omission was "pertinent" to
financial control of the agency to Congress.
others before passing the bill by a 267-113 vote. (Vote 484,
release would endanger sources and methods of in-
the committee's review of the agency's activities.
I
House action came during debate on a bill (HR 8603) to
p. 2337)
telligence. After that step, the committee will vote again on
-By David M. Maxfield
increase the annual federal subsidy for the Postal Service.
The extent to which the Postal Service should retain its
As reported by the Post Office and Civil Service Committee
independence from congressional oversight in view of in-
whether to release the report, Church told reporters. Tower
was not present for the first vote.
July 24, the bill would not have changed the independent
creasing annual deficits, further proposals for postal rate
financial status given the agency by Congress in the 1970
hikes and continuing poor delivery service dominated the
Foreign Aid Message
reorganization of the old Post Office Department.
debate.
House Probe
President Ford asked Congress Oct. 30 to approve
The bill's original intent was drastically altered,
From references made by the committee during the
Congressional Oversight
a $4.7-billion military and economic aid program for
however, when the House Sept. 29 adopted an amendment
public session, it was clear that the report on "Operation
fiscal 1976, the bulk of it for the Middle East.
to HR 8603 offered by Bill Alexander (D Ark.) which
Supporters of the Hanley amendment said the Alex-
Shamrock" paralleled an investigation conducted by the
would require the Postal Service to go to Congress each
ander amendment would preclude long-range planning to
House Government Operations Government Information
The Senate Foreign Relations and House Inter-
national Relations Committees will be considering ac-
year for all of its appropriations to operate the Postal Ser-
modernize the Postal Service by requiring appropriations a
and Individual Rights Subcommittee chaired by Bella S.
tual authorizations of $3.2-billion to finance the
vice. Even postal revenues would have to be turned over
year at a time. "The inherent weakness in that system,"
Abzug (D N.Y.).
said Post Office and Civil Service Committee Chairman
During a hearing by the subcommittee Oct. 23, Abzug
program, which proposes $424.5-million for direct
to the U.S. Treasury.
After adoption of the Alexander amendment in
David N. Henderson (D N.C.), "is that it precludes long-
revealed that government agents for years had monitored
military assistance and training, $1.9-billion in securi-
and photographed private international cables sent to and
ty supporting (economic) assistance, and $2.4-billion in
September, sponsors of the bill withdrew it from the floor
range planning, modernization of postal facilities, or any
military credit sales.
SO they could rally support for a compromise. (Earlier ac-
other long-range program to improve postal services.
from Washington.
The long-delayed requests would be in addition to
tion, Weekly Report p. 2127)
Hanley said the Alexander amendment would place
"The FBI and NSA have apparently engaged in illegal
the Postal Service "in immediate and severe financial
and unconstitutional interception and copying of private
the $1.3-billion for humanitarian and development
Hanley Amendment
jeopardy, cripple the process of collective bargaining,
communications sent by private individuals," Abzug said.
assistance already requested for fiscal 1976. That re-
remove the incentive for a responsible rate structure and,
Summarizing a report of the subcommittee staff, Ab-
quest has been passed by the House (HR 9005) and is to
The key vote Oct. 30 came when the House rejected
in the long run, cost more than HR 8603 as it was reported
zug said that these agencies examined "all cables in the
be considered by the Senate Nov. 3. (Details, Weekly
196-207 a compromise amendment offered by James M.
from the committee."
Washington office of RCA Global Communications Inc."
Report p. 2187)
Hanley (D N.Y.), the floor manager of the bill. The Hanley
He also pointed out that the $1.5-billion authorized for
and "all cables to and from selected countries in the
The military and Middle East package was
amendment would have dropped the Alexander amend-
fiscal 1976 by his amendment included $600-million to pay
Washington office of ITT World Communications."
delayed until the completion of Secretary of State
ment and required instead that the Postal Service go to
for reducing the proposed rate hike.
Henry A. Kissinger's most recent round of shuttle
Congress only for approval of public service funds that ex-
Opponents of the Hanley amendment said the Alex-
NSA Mission
diplomacy in the Middle East, which resulted in the
ceeded the existing authorized level of $920-million a year.
ander amendment was needed to make the Postal Service
Established in 1952 by executive order, the NSA, ac-
Egyptian-Israeli peace accord.
Public service funds cover the cost of certain postal services
more accountable to the Congress and the public. Alex-
Ford told Congress that his proposal was heavily
cording to Gen. Allen, has been delegated responsibility for
such as rural post offices which are not fully covered by
ander said to continue giving the Postal Service a "blank
weighted to "contribute to the confidence that Middle
postal revenues.
check" would only continue the agency's inefficiency.
Eastern nations must have in the United States if we
The Hanley amendment also would have authorized an
Alexander pointed out that his amendment would
are to maintain our momentum toward peace."
additional $1.5-billion in public service funds for the Postal
eliminate the automatic $920-million public service subsidy
For Israel, Ford proposed $1.5-billion in military
Service for fiscal 1976: $900-million to pay for expected
the Postal Service received annually under existing law and
sales credits-with about $500-million of the
fiscal 1976 deficits and $600-million to reduce by one-cent
"return the postal purse strings to Congress and accoun-
repayments to be forgiven-and $740-million in securi-
the Postal Service's proposed first-class rate increase. The
tability to the people."
ty support aid.
agency had proposed a three-cent increase-to 13 cents.
He said the Postal Service was expected to lose a
He requested $750-million in economic aid for
The additional $600-million would allow the increase to be
billion dollars in 1976, adding that it "can certainly use
Egypt; $100-million in military grants, $78-million in
reduced to 12 cents.
some help in its budgeting."
economic aid and $75-million in credit sales for Jordan;
The 1970 reorganization act created a Postal Rate
Opponents of the Hanley amendment emphasized that
$90-million in economic aid for Syria; and $50-million
Commission to hear and make recommendations on rate in-
it would add an additional $1.5-billion to the fiscal 1976
for a special requirements fund for the cost of station-
creases. The act was designed to eliminate political and
budget deficit. They said it was wrong to give the Postal
ing U.S. civilian technicians in the Sinai and for other
congressional influence over the rate-making process and
Service additional money when it was not performing ef-
special circumstances.
other operations of the Postal Service. (Congress and the
ficiently.
Other major recipients would be the two NATO
Nation Vol. III, p. 441)
Brock Adams (D Wash.), chairman of the House
allies Greece and Turkey. Ford proposed for Greece
In a separate vote following rejection of the Hanley
Budget Committee, urged support of the Hanley
more than $50-million in military grants, $110-million
amendment, the House approved the portion of his amend-
amendment. He said the Postal Service revenues for fiscal
in sales credits and $65-million in economic aid. For
ment restricting the postal rate increase to 2 cents.
1976 were estimated at $11-billion and the expenditures at
Turkey he proposed $75-million in military grants and
HR 8603 now must be considered by the Senate, where
about $14.5-billion, leaving a $3.5-billion deficit under the
$130-million in military sales credits.
supporters of the Hanley compromise hope the Alexander
Alexander amendment. The choice was between the $3.5-
Other major recipients of the military grant
amendment will be deleted. Hearings have not yet been
billion deficit under the Alexander amendment or the $1.5-
program, which faces hard questions in Congress,
scheduled by the Senate post office committee. The 13-cent
billion deficit by the Hanley amendment, he said.
Air Force Lt. Gen. Lew Allen Jr., director of the National
would be Indonesia, Korea, the Philippines, Thailand
rate for first-class letters will go into effect Dec. 28 if action
The House rejected the Hanley amendment 196-207,
Security Agency, testifies Oct. 29 before the Senate Select
and Ethiopia.
on HR 8603 or similar legislation is not completed in the
with Republicans voting overwhelming against it, 21-113,
Intelligence Committee.
first session.
and Democrats voting for it, 175-94. (Vote 481, p. 2337)
PAGE 2340-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC.
Reproduction prohibited in whole or in part except by editorial clients
Reproduction prohibited whole or part except by editorial clients
Nov. 1, 1975-PAGE 2341
Transportation/Communications 2
Transportation/Communications - 3
Surface Transportation Subcommittee Oct. 30 resumed
CON-Piecemeal Treatment
Postal Service Monopoly
hearings on the comprehensive rail plan and other rail
Coors Nomination Tabled
transportation problems.
Opponents of HR 8672 argued that the 1975 work
An amendment offered by John H. Rousselot (R Calif.)
season on railroads had already passed and that passage
to let private carriers compete with the Postal Service for
Presidential Veto
of the bill came too late to do any good.
delivery of first-class mail was rejected by a 68-319 vote.
The Senate Commerce Committee Oct. 30
They also said HR 8672 provided only a piecemeal solu-
(Vote 482. p. 2337)
tabled, and in effect killed, President Ford's controver-
President Ford is expected to veto HR 8672 if it is
tion to the financial problems of the railroads, which, they
Rousselot said "it is time to make the Postal Service
sial nomination of Colorado beer executive Joseph
cleared by Congress. The White House position is that the
maintained, should be dealt with in more comprehensive
competitive with private enterprise" by eliminating the
Coors to the board of the Corporation for Public Broad-
provisions of the emergency railroad jobs bill should be
railroad legislation.
postal monopoly. Existing law prohibited private com-
casting (CPB).
dealt with in more comprehensive railroad legislation.
The dissenters contended the bill would favor railroads
Coors, first nominated by President Nixon, was
The Ford administration has said it would insist on
panies from carrying such mail.
in the Northeast, although unemployment of railroad
Joe Skubitz (R Kan.), who did not support Rousselot's
renominated in May by President Ford. Controversy
passage of its proposal to ease federal regulation of the
maintenance-of-way workers was most severe in the West
amendment, said it clearly showed "how desperate some
over the nomination centered on whether Coors would
railroad industry as a precondition to supporting any
and South.
people will get to try to get an improved mail service."
have a conflict of interest in serving on the CPB board
railroad aid legislation, including the $2.5-billion com-
Opponents of the Rousselot amendment said that if the
and on the board of Television News, Inc. (TVN), a
prehensive rail plan. (Ford plan, Weekly Report p. 1100)
Amendments
law were repealed, private companies would deliver mail
Coors family business. Committee members also had
HR 8672 was reported Sept. 10 by the House Interstate
The House adopted two amendments to HR 8672, both
only in high-density areas where they could make a profit
expressed concern over whether Coors would attempt
and Foreign Commerce Committee. (Committee action,
by voice vote.
and would leave the low-density areas to the Postal Service.
prior censorship of public TV programs.
Weekly Report p. 2088)
The first, offered by Abner J. Mikva (D Ill.), provided
Coors, a conservative who testified that he had
that if any of the railroads repaired through funds
Other Amendments
made contributions to the John Birch Society and con-
Floor Action
authorized in the bill were later sold to the federal govern-
servative political candidates, called the committee
ment the amount of such assistance would be deducted
Other amendments adopted by the House were:
vote a "bad decision" based on "polities and
Before taking up the bill, the House by a 369-23 vote
from the purchase price.
A Buchanan (R Ala.) amendment to require that the
philosophical considerations along party lines."
approved the rule (H Res 758) under which HR 8672 was
The second, offered by Joseph P. Vigorito (D Pa.),
Postmaster General and Deputy Postmaster General be ap-
The 11-6 vote on the nomination was divided large-
considered. (Vote 474, Weekly Report p. 2290)
added a provision requiring that furloughed railroad
pointed by the President and approved by the Senate. Voice
ly along party lines. Voting to table it were 10
During general debate, House members argued the
employees be given second priority in filling jobs. Under
vote.
Democrats-Magnuson (Wash.), Pastore (R.I.), Hartke
merits of allocating $240-million to rehire unemployed
the bill, first priority was given to furloughed
A Du Pont (R Del.) amendment to permit nonprofit
(Ind.), Moss (Utah), Hollings (S.C.), Inouye (Hawaii),
railroad workers and others out of work.
maintenance-of-way and signal maintenance employees.
organizations to use volunteers to deliver brochures and
Tunney (Calif.), Stevenson (III.), Ford (Ky.) and Durkin
The House rejected by voice vote an amendment
circulars to private homes. Standing vote, 34-18.
(N.H.)-and one Republican, Weicker (Conn.). Voting
offered by E. G. Shuster (R Pa.) that would have increased
against tabling it were six Republicans: Pearson
PRO-Reduce Unemployment
A Cohen (R Maine) amendment to give nonprofit
to $400-million-from $240-million-the amount of money
(Kan.), Griffin (Mich.), Baker (Tenn.), Stevens
fisheries organizations the same bulk-rate mailing
Proponents of HR 8672 said it provided a good way to
to be authorized. An amendment offered by Silvio 0. Conte
(Alaska), Beall (Md.) and Buckley (N.Y.).
provileges currently given to nonprofit farming
reduce the nation's unemployment and at the same time
(R Mass.) to extend the assistance provided in the bill to
rehabilitate the railroads.
organizations. Voice vote.
railroads owned by states or other public entities was re-
Other amendments rejected were:
House Passage:
"Rebuilding railroads is a sound means of reducing un-
jected by a 14-34 standing vote.
employment and stimulating the economy," said Stewart
As passed by the House, the provisions in HR 8672
A Maguire (D N.J.) amendment to create a mailers'
EMERGENCY RAIL ASSISTANCE
B. McKinney (R Conn.), adding that the nation's energy
were identical to those in the committee-reported bill ex-
alliance association to process complaints from postal
crisis underscored "the importance of forging a stronger
cept for the changes made by the two floor amendments.
patrons. Standing vote, 7-32.
The House Oct. 23 passed by a 261-129 vote legislation
role for the fuel-efficient railroads in the nation's transpor-
(Provisions, Weekly Report p. 2088)
A Simon (D Ill.) amendment to limit postal rate in-
(HR 8672) to authorize $240-million in federal grants to put
tation system."
After passing HR 8672 by 261-129, the House substi-
creases to one each year and to tie the amount of such in-
unemployed workers into jobs repairing and upgrading the
Proponents also said competitors of the railroads, such
tuted the language of its bill for the companion Senate
creases to the Consumer Price Index. Standing vote, 22-32.
nation's deteriorating railroads.
as trucks and barges, had for many years received federal
bill (S 1730), and passed S 1730 by voice vote. Voting for
A Schroeder (D Colo.) amendment to require that each
A related bill (S 1730) was passed by the Senate May
subsidies to help in maintaining their rights-of-way, while
HR 8672 were 61 Republicans and 200 Democrats; 73 Re-
class of mail bear the postal costs attributable to it, but
16. It would authorize $700-million in grants plus another
the railroads were required to pay for maintaining their
publicans and 56 Democrats opposed it. (Vote 475, Week-
$100-million in federally guaranteed loans. The bill now
own rights-of-way.
protecting charitable and nonprofit mail from increased
1g Report P. 2290)
-By Margaret Hurst Lowe
postal rates, and deleting provisions providing for a Com-
goes to a conference committee to resolve the differences
mission on Postal Service. Standing vote, 16-31.
between the House and Senate versions. (Senate passage,
Weekly Report p. 1099)
Patricia Ann O'Connor
Elizabeth Wehr
Weekly
Art Department
A White (D Texas) amendment to grant free postage
Donald Smith
Laura Weiss
Howard Chapman (Director)
for mailing voter education materials to states subject to
Other Rail Legislation
the requirements of the Voting Rights Act. Standing vote,
Report
Elder Witt
Research Staff
Richard A. Pottern
Wayne Walker
On Feb. 26, Congress cleared a bill (S 281-PL 94-5)
Editorial Staff
16-25.
Thomas J. Arrandale
Edna Frazier (Librarian)
providing $347-million in emergency grants and loans for
Chairman of the Board
Elizabeth Bowman
James R. Berger
General Manager
An Edgar (D Pa.) amendment to create a 2c postcard
Nelson Poynter
Rhodes Cook
Paul P. Massa
the bankrupt Penn Central and other financially ailing
Mary Cohn
for anyone to use in communicating with their senators and
Northeast and Midwest railroads (Weekly Report p. 461)
Prudence Crewdson
Harrison H. Donnelly
President and Editor
representatives. Standing vote, 10-43.
Walter E. Eling
Sales Manager
On July 28, the United States Railway Association
Eugene C. Patterson
Susan Henry Davis
Gary C. Hong
Robert C. Hur
Bruce F. Freed
A Litton (D Mo.) amendment to require a postman to
(USRA), the government agency charged with restructur-
Executive Editor
Judy Gardner
Diane Huffman
Promotion Director
collect mail from private homes whenever the resident has
ing the bankrupt Midwest and Northeast railroads, sent to
Wayne Kelley
AI Gordon
Susan B. Jenkins
Senior Editors
Martha V. Gottron
Diantha Johnson
James V. Bullard
indicated that there was mail to be collected. Voice vote.
Congress a comprehensive rail reorganization plan that
would require $2.5-billion in new federal aid. That plan
Mercer Cross (Administration)
Robert E. Healy
Hillary Johnson
A Gude (R Md.) amendment to require the Postal Ser-
Karen Landis
David Loomis
Controller
automatically becomes law if it is not rejected by either the
Robert E. Cuthriell (Research)
Mary Link
Warden Moxley
Jonathan C. Angier IV
vice to hold public hearings before constructing a new
Robert A. Diamond (Books)
postal facility in a community. Voice vote.
House or the Senate by Nov. 9. (Weekly Report p. 1706)
Margaret Hurst Lowe
Carol J. Ott
Alan Ehrenhalt (Politics)
Before passing HR 8603, the House rejected by a 129-
Peter A. Harkness (Managing Editor)
Carolyn Mathiasen
Bob Rankin
Production
Subcommittees of both the House Interstate and
I.D. Fuller (Manager)
250 vote a Derwinski (R Ill.) motion to recommit the bill to
Foreign Commerce and the Senate Commerce Committees
John L. Moore (Asst. Managing Editor)
Mary Newmann
Proofreaders
Kathleen E. Walsh (Asst. Manager)
also have been considering their own omnibus legislation
Michael D. Wormser (Asst. Managing Editor)
Peg O'Hara
Eugene J. Gabler
the Post Office and Civil Service Committee with instruc-
Matt Pinkus
Sumie Kinoshita
dealing with a wide variety of rail problems. The House
Associate Editors
tions to hold further hearings on the bill. (Vote 483, p.
Michael L. Pleasants
Robert J. Moore
David M. Maxfield
2337)
Surface Transportation Subcommittee began markup
Ted Vaden
David Speights
-By Margaret Hurst Lowe
sessions Oct. 28-30 on its version (HR 9802), and the Senate
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
PAGE 2342-Nov. 1, 1975
COPYRIGHT 1975 CONGRESSIONAL QUARTERLY INC
Reproduction prohibited in whole or except by editorial clients
Reproduction prohibited whole part except by editorial clients
Nov. 1, 1975-PAGE 2343
Co
C
CONGRESSIONAL QUARTERLY
Weekly Report
Nov. 1, 1975
Pages 2297-2344
Housing and Community Development
Consumer Affairs
Aid to New York City
2299
Consumer Product Safety
2321
Undeterred by the promise of a presidential
The stage was set Oct. 22 for a House-Senate
veto, congressional committees pressed
conflict over the Consumer Product Safety
forward with proposals that would give New
Commission and Congress' right to review
York a chance to avoid a default on its debts.
and veto the commission's decisions.
Ford New York Speech Text
2301
Truth in Leasing
2324
Regulatory Reform
2325
Economic Affairs
No-Fault Auto Insurance
2325
Tax Revision
2304
The House Ways and Means Committee Oct.
Politics
28-29 voted to extend 1975 business tax re-
Bentsen Profile
2326
ductions but shelved more costly proposals
The frenetic travels and well-modulated
designed to encourage capital formation.
message of Sen. Lloyd Bentsen have not
Budget Resolution
2304
reaped the response he had hoped for. By
Debt Ceiling Extension
2305
autumn 1975 he is short of money and low in
Minimum Wage Increase
2305
name recognition.
Productivity Commission
2306
Carter Strength in lowa
2331
Economy Notes
2306
Political Notes
2331
Bankruptcy Overhaul
2307
Foreign Policy/National Security
With a growing segment of U.S. society unable
to pay its bills, Congress has undertaken a
Slay Confirmation
2332
major overhaul of the nation's creaky
Defense Department Budget
2333
bankruptcy system.
Probe of Cable Monitoring
2333
Sadat Visit
2339
Agriculture
Foreign Military Aid
2340
Russian Grain Deal
2312
Foreign Policy Notes
2340
Health/Education/Welfare
Transportation/Communications
Busing Amendment
2313
Postal Reorganization
2341
Coors Nomination
2342
Anti-busing forces in the Senate began trying
to build momentum for a constitutional
Emergency Rail Assistance
2342
amendment that would ban court-ordered
busing as a parade of witnesses told a Senate
Status of Legislation
2298
committee that busing was not working.
Corrections
2320
Ford on Busing Amendment
2313
Women and Social Security
2315
Public Laws
2320
HEW Notes
2317
Senate Votes (453-457)
2336
Energy and Environment
House Votes (476-484)
2334, 2337
TVA Bonding Authority
2318
Clean Air
2318
Inside Congress
Looking Ahead
First Session Adjournment
2319
2319
U.S. Chamber of Commerce. The so-called "in-
Proxmire Voting Record
2319
direct" or "grassroots" form of lobbying has been the
Congressional Pay
principal stock-in-trade of the Chamber as it seeks to
Inside Congress Notes
2319
make the voice of business heard in Washington. CQ
Executive Branch
examines the Chamber's lobbying operation and some
of the issues raised by the grassroots approach.
Ford New York Speech Text
2301
PAGE 2344-Nov. 1, 1975
THE PRESIDENT HAS SEEN
November 4, 1975
MEMORANDUM: EMERGENCY MUNICIPAL REORGANIZATION ACT
The Democratic Policy Committee met to consider legislative options dealing with
the crisis in our cities with particular regard to New York City and New York
State. Senator Proxmire and Senator Stevenson were invited to the Policy Committee
to explain the range of options previously addressed by the Senate Banking Committee.
Both Senator Proxmire and Senator Stevenson opposed a federal bailout of New York
City as was suggested by some when the crisis first arose. It was noted in the
Policy Meeting that the President had announced publicly that "he was prepared to
veto any measure" to bail out New York City.
It was reported that a bill dealing with the New York situation has been approved
by the Senate Banking Committee. It was prepared in cooperation with the Federal
Reserve and Treasury Department staff people and in effect it mandates the type of
reorganization of New York City's financial structure that would otherwise only be
provided after a technical default and a declaration of bankruptcy by that City.
Senator Proxmire and Senator Stevenson are prepared to present a detailed delinea-
tion of the stringent provisions that would be imposed on New York under the terms
of this bill that has been recommended for consideration by the full Senate. In
effect, what their bill provides is a rigid program of austerity to be undertaken
by the State as well as by the City of New York including the refinancing of
existing municipal bonds and City obligations on a voluntary basis triggering a
guarantee by the federal government of this indebtedness. In effect, the bill
recommends a reorganization of the City in return for the most stringent conditions
of financing.
It was the unanimous recommendation of the Senate Democratic Policy Committee to
seek a meeting with the President to convey our sense of urgency and the range of
options other than a direct federal bailout which have been considered in the
Senate. What has emerged from the consideration of the issue is the structure of
the bill I have outlined. It is a short-term four-year bill. Hopefully and with
a great degree of probability, we do not think it would cost the federal govern-
ment any money; in fact, it would yield a benefit to the federal government
through the guarantee fees. What it would do essentially is to mandate a dramatic
reorganization of the services and financing of the City and State to put them on
a sound level. It would avoid the technical default of the Bankruptcy Act but
provide the remedies of reorganization established by an even updated bankruptcy
law.
In view of the opposition of the President to any federal funds bailing out New
York City without assuring restructuring in return, it seems to us that the
proposal of the Senate Banking Committee would meet the objections raised by the
President to a great extent. It would undertake to reorganize City and State
finances without setting off a potential ripple effect on every other municipality
in the country that might occur with a technical default under the existing bank-
ruptcy law. It was the hope that in a meeting with the President and his considera-
tion of the details of the bill presented by Senators Proxmire and Stevenson that
together we might accomplish what is best for the nation, least costly to the
federal taxpayer and in the best interest of all municipalities including New York
City and all states including New York State.
26
[WSJ 11/6/75]
TH
REVIEW & OUTLOOK
Taking Risks on New York
Even those of us who have little
next, and roughly $1.5 billion an-
use for scare predictions are forced
nually for the following three. Sena-
to admit that no one can predict
tor Proxmire wants to force down
precisely what effects a New York
interest rates, but nothing in the bill
City default might have. A good
specifies 81/2% for the guaranteed
many people are thus seizing on the
loans, and what the private market
thought that you could avoid the
will demand for the unguaranteed
risk by aiding the city under terms
paper (if it will take it at all) is un-
strict enough to force it to solve the
foreseeable.
fundamental underlying problems.
This isn't the first time that a
FORD
So far the fruition of such think-
Senate bill has kept a set of figures
ing has been a bill Senator Prox-
while changing the assumption on
mire's Banking Committee reported
which they were based, but that
out yesterday. It would provide a
isn't a point that increases our con-
federal guarantee to roll over some
fidence in Sen. Proxmire's bill. And
of the city's debt on a schedule that
even if the city's plan held up after
would phase out federal interven-
all, it would still not solve the prob-
tion over five years. During the in-
lem. For the Control Board has al-
terim years a federal board would
lowed a number of other assump-
have sweeping powers over the
tions which add up to a continuing
city's financial affairs.
hidden deficit of sizable proportions.
The bill, or at least its timing, is
Primarily, as The New York
based on a three-year plan city and
Times" Steven Weisman has re-
state officials have put together to
ported, the city's plan does nothing
get the city budget back into bal-
to cope with underfunding of its
ance in the fiscal year 1977-1978. But
pension plans. The City Actuary
a look at the details of this plan
puts the "unfunded accrued liabil-
scarcely supports much optimism
ity" of the five city systems at $6.1
about Senator Proxmire's five-year
billion. In other words, the benefits
phaseout. Rather, it seems more
already earned by employes who
likely the result would be a chronic
have not yet retired, and which the
drain on the federal treasury.
city must eventually pay, are al-
The three-year plan, in the form
most double the funds' present as-
of a resolution adopted by the
sets. Furthermore, most of the
Emergency Financial Control
city's actuarial assumptions haven't
Board, puts the city's October-June
been revised for 60 years, mainly to
deficit at $664 million, and the full-
avoid the higher appropriations that
year deficit for fiscal 1976-1977 at
would be necessary if they were.
$470 million. In the third year, 1977-
This underfunding might be much
1978, it looks for a surplus of $30
greater.
million. Unfortunately, the accom-
And to make matters worse, the
panying packet of supporting docu-
city is counting as revenue every-
ments gives substantially different
thing the pension funds earn over a
figures.
4% return on investments. This
There, in Schedule A, page 3, we
"interest surplus" skim is substan-
have another version of the three-
tial-$105 million this fiscal year,
year plan which puts the full year
$135 million in '76-'77, and $165 mil-
current deficit at $988.8 million (a
lion in '77-'78. The city's new Man-
quarter of a billion dollars more
agement Advisory Board is study-
than the figure City Hall is using)
ing the actuarial demands. The re-
and the fiscal '76-'77 deficit at $663.3
sult, say some experts, may be an
million. In short, we go some $1.7
increase in required payments,
billion in the red before we reach
which this year were $1.1 billion, of
the balanced budget of 77-78, a cu-
from 20% to 30%.
mulative deficit that is $460 million
The Control Board turned a blind
larger than the Senate bill allows
eye to this fudging on the grounds
for.
that the city couldn't conceivably
Now how did we get from one set
correct all its errors at once. By the
of figures to the other? These larger
same token, a true fiscal recovery
deficits in Schedule A, we are told,
will take much longer than the
are the result of the city's straight
Banking Committee anticipates.
projections of revenues and expend-
Where lies the greater risk? In
itures. The lower set of figures
bankruptcy court, where the full
given to Senator Proxmire were de-
deficit is openly acknowledged and
rived from "adjustments" to Sched-
a reasonable plan of recovery can
ule A. Specifically, the Control
be drawn up? Or on the Senate
Board adjusted the debt service and
floor, where hidden loopholes stay
real estate tax figures on the basis
hidden and the city is allowed a re-
of the assumption that "there will
prieve to stagger on to yet another
be available a federal guarantee for
fiscal crisis, in which the federal
taxable notes at an interest rate of
treasury may be tapped to make
81/2% in a principal amount of ap-
good the loans it has backed and in-
proximately $6 billion."
flation nationwide is made all the
So far, so good, but now the
harder to control?
hitch. The Senate plan based on the
No one may fully know the con-
Control Board's conclusion does not
sequences of a default on the na-
share the Control Board's assump-
tion's largest municipal budget, but
tion. Senator Proxmire's bill would
we are equally sure that the same
guarantee some $2.5 billion this fis-
uncertainty applies to attempts to
cal year, a high of $3.5 billion next
"rescue" the city. Both events are
fiscal year, and lesser amounts the
unprecedented, and in our opinion,
two following years. It requires that
the graver risks lie in believing you
the private market pick up, in un-
have solved the problem by more of
guaranteed loans, some $1.2 billion
the budgetary gimmickry that
this fiscal year, $800 million the
caused it in the first place.