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Ford Newsletter, June-Aug. 1957
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Ford Newsletter, June-Aug. 1957
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This file contains material relating to Dwight Eisenhower.
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Gerald R. Ford Congressional Papers
Newsletters
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China
Department of Defense. 9/18/1947-
Appropriations and expenditures
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This document scanned from Box D2 of the Gerald R. Ford Congressional Papers at the Gerald R. Ford Presidential Library. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD June 6, 1957 USELESS AR.Y HOSPITALS The taxpayers are now ahead in the fight to close two "useless" ar- my hospitals, but the next round will take place in the Senate where Sen- ator Potter is likewise prepared to put up a vigorous battle for economy. For the past few years the Army has demonstrated that it doesn't need the Army and Navy Hospital at Hot Springs, Arkansas or the Murphy Hospital at Waltham, Massachusetts. The Army has insisted that these should be closed to offer a saving of $746,500, for the fiscal year 1958, and an annual saving thereafter of $1,043,000. However, the Democratic- controlled House Committee on Appropriations has forced the Army to keep these hopitals opened. It attempted to do the same this year by writing into the Appropriation Bill for the Department of Defense language direc- ting the Army to keep these two hospitals open. You will be interested to know that the 450-bed hospital in Massa- chusetts has an average bed-occupancy of 91, and that the Army is forced to employ 313 (military and civilian) persons to care for these 91 pati- ents. The Army proved conclusively to our Committee that it had no need for Murphy Hospital and that its facilities could be used by the New Eng- land Headquarters of the Army Corps of Engineers which is now paying $193- 000 a year in rent for office space in the Boston area. Nevertheless, the Democratic-controlled committee, for obvious but unsound reasons, decided to force the Army to waste upwards of a million dollars a year on the two installations. I filed a inority report on "the useless hospitals" and was prepared to argue the case on its merits before the House. However, under the Rules of the House of Representatives, there may be no legislation in an appropriation bill. In the consideration of the Defense Appropriation Bill last week, I raised a point of order that the provision forcing the Army to operate these two hospitals was legislation in an appropriation bill and contrary to existing law. After presenting my arguments to the Chairman, he ruled that the lan- guage in the bill was legislation in that it imposed upon a department of Government an affirmative and mandatory requirement not required by law. As a result, the provisions directing the Army to operate the hospitals was eliminated from the bill and the Army will not be required to main- tain them after June 30. Savings--$1 million annually. Senator Potter has assured me that he will vigorously oppose any ef- fort in the Senate to restore the provision requiring this wasteful ex- penditure. DEFENSE DEPARTMENT CUTTING BUSINESS ACTIVITY The Defense Department gave the green light on April 19th to 155 more discontinuances and 8 more curtailments of commercial and industrial acti- vities. Added to 285 activities already discontinued, 47 in process of dis- continuance, 65 curtailed and 2 in process of curtailment, this makes a total of 562 instances where competition with private business by the Armed Services has been, is being, or will be ended or lessened. Secre- tary of Defense Wilson in the past 4 1/2 years has done an excellent job in getting the Armed Forces to stop competing with small business. HOOVER COLLISSION SAVINGS PASS $2.8 BILLION LARK Savings totaling $2,818,000,000 were claimed May 20 as proof of the value of the Hoover Commission recommendations. Chairman Clarence Francis of the Citizens Committee for the Hoover Report said that adoption of proposals of the First Hoover Commission led to budgetary economies of $2,337,900,000. So far, he said that his com- mittee had traced savings of 480,100,000 due to recommendations of the Second Hoover Commission--although only 39 per cent of the Second Commis- sion's 314 recommendations have been adopted and that some have been put into effect too recently to yield significant savings. In connection with this, it should be noted that the Eisenhower Ad- ministration is making every effort to implement Hoover Commission recom- mendations. The Executive Branch has accepted wholly or partially 73.8 per cent of the 497 recommendations made by the Hoover Commission on Gov- ernment Reorganization. According to a report submitted to the President by his special assis- tant on government reorganization matters, as of Lay lst, 280 recommenda- tions had already been implemented or were in process of implementation out of 367 recommendations wholly or partially accepted. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD June 13, 1957 The House of Representatives last week debated a bill to extend Public Law 480 while the newspapers gave considerable space to radioactive fallout. I would like to comment on both items in this week's newsletter. PUBLIC LAW 480 - Passed in 1954 as part of President Eisenhower's program for reduction of the accumulated agricultural surpluses, and known as the Agricultural Trade and Assistance Act, will expire on June 30th, unless extended by the Congress. The program under this Act has been highly successful in disposing of our surpluses, in expanding old and developing new foreign markets for our farm products, and in pro- viding foreign currency for meeting some of our obligations abroad, including the pur- chase of certain strategic materials. Since the fall of 1954, over $2 billion worth of surplus agricultural products have been sold to 30 foreign nations. This includes 430 million bushels of wheat, 2.5 million bales of cotton, 200 million pounds of lard, 130 million pounds of dairy pro- ducts, and 80 million pounds of fruit and vegetables. We have reduced our own storage problems in the United States, and have gotten food to people who need it. In the implementation of this program, our government is using several promotional devices, including participation in trade and food fairs throughout the world, to encour- age greater sale of American farm products in worldwide markets. Market development pro- jects are actively underway in 21 countries with an aim to the increased use of American products. The foreign currency received in the sale of these surplus products is used in the country where it is obtained to meet U.S. obligations abroad. It is used to pay the cost of our military establishments, including housing for servicemen and their families; it helps to meet the operating expenses of the Department of State and other agencies over- seas, and it is used for our educational exchange programs and the distribution of American books and periodicals. Substantial amounts of the foreign currencies are loaned to cooperating countries to promote economic development. Finally, these currencies are used to purchase strategic materials for our Armed Forces and to support allied military services and acquire equip- ment for our common defense abroad. Final passage of a bill to extend the operation of P.L. 480 was temporarily delayed when a technical point of order against it was sustained. We trust this problem will be resolved so the desirable and successful provisions of this program may be continued for another year. RADIOACTIVE FALLOUT: Atomic Energy Commissioner Willard F. Libby, a renowned scientist in his own right, told a Congressional committee that the danger from radio- active fallout resulting from the nuclear tests is very small. While acknowledging that risks are involved, Libby insisted that "testing constitutes a small risk - very small compared to ordinary risks which can be tolerated." Commissioner Libby is a competent and highly qualified authority. Other scientists who have been reported to disagree with Mr. Libby don't have all the facts at their disposal as does a member of the Atomic Energy Commission. The Commission's project on fallout research is, in Libby's words, "One of the most impressive scientific investigations ever made." I am convinced from the testimony before my committee, and we have gone into this problem extensively, that Libby is right, that the amount of fallout is negligible and that we have little to fear in this regard at the present time. It seems to me that the President put his finger on a vital point when he said that there appeared to be an organized drive to discredit our program of testing nuclear weapons. This drive seems to be stimulated by forces which haven't as yet been identified. In this connection Commissioner Libby presented to the committee a serious and fundamental question when he asked, "Would we prefer to run the risk of annihilation which might result if we surrendered the weapons which are so essential to our freedom and our actual survival?" I was also impressed with the recent statement of the Director of the laboratory which the University of Chicago operates for the AEC, who stated fhat fumes from busses and cars are more dangerous than radioactive fallout from nuclear bomb testing. Dr. Nor- man Hilberry said, "Frankly, I am more concerned about tetraethyl lead being tossed from auto exhausts than I am about the present rate of fallout in the United States." In the years ahead it may be possible to work out a sound and effective interna- ticmal agreement to ban further testing and use of nuclear bombs. However, until such an agreement providing fool-proof safeguards can be established, we must continue to develop the most modern means for protecting our nation and its people. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD June 20, 1957 This past week your Congress an (with some of my collea ues) attended a breakfast at the White House. Fortunately I had the opportunity to sit directly across the table from Ike, where one could observe him most close- ly. He looked in first-class physical condition- in fact, I have never seen him SO vigorous, as we discussed his legislative program. Incidental- ly, as of May 27th this Congress had approved only 13 of Ike's 198 legis- lative proposals. At our table various members of the House popped questions at him, in- volving many of the controversial issues before the Congress. Someone brou, ht up the budget for the Army, Navy, and Air Force. Ike responded by emphasizing that he had cut the Defense Department funds by $10 billion be- fore he submitted the budget to Congress in January. Another Congressman brought up the item veto proposal which Ike favors. The President believes there is a definite need for this legislation if he is to control the "pork-barrel" tendencies that sometimes run rampant in the House and Senate. The Hoover Commission recommendations were discussed in considerable detail. Ike indicated he had pledged full support to Mr. Hoover and his bi- partisan commission. At President Eisenhower's direction the Executive Branch of the Federal Government has accepted wholly or in part 74 per cent of the 497 recommendations. CIVIL RIGHTS: Last week the House wound up its lengthy debate on what ought to be considered as not merely important egislation but as a basic noral matter: H. R. 6127, "a bill to provide means of further securing and protecting the civil rights of persons within the jurisdiction of the United States. " The bill itself, a creation of the Eisenhower Administration, would (1) enable the establishment of a bipartisan commission to investigate matters wherein citizens have been deprived of their right to vote by reason of race, creed, or color; (2) it would provide for the appointment of an addi- tional Assistant Attorney General by the President to head a Civil Rights Division in the Department of Justice; and (3) the bill would authorize civ- il remedies--that is, it seeks to amend existing law SO as to permit the Federal Government to obtain from the civil courts the necessary relief in cases where citizens may be deprived of the voting franchise granted to them under the Constitution. Such a crucial issue as this would certainly appear to the average straight-thinking American as one to be treated without political pulling and hauling. Sadly enough, this is not the case. The Bill, as far as the House was concerned, survived the test with relatively little partisan fric- tion. However, as is not surprising, the Southerners persisted in giving it solid sectional treatment. The rub is this: the Southern Democrats would inject into the Bill a so-called trial-by-jury amendment. This amend- ment would grant such a remedy to any private citizen or official who alleg- edly violates the injunction issued by the Federal Court where the court had acted to prevent the disenfranchisement of a qualified voter. We must realize that if used in certain geographical areas in the Nation the amend- ment would interfere with the protection of one's right to vote. Actually H. R. 6127 does not have as its ultimate aim the punishment of offenders of Civil Rights legislation; rather it seeks to prevent any action that might be taken against lawful voters to prevent them from exer- cising their rights. This is moderate, and it is certainly fair. For one thing, the use of the injunction or court-restraining order is perfectly normal protection in many Federal cases. The New York Times stated last month: "Any official who carries out his sworn obligation to uphold the Constitution need have no fear of the injunctive process." The greater phase of the battle to complete the enactment of H. R. 6127 will be waged in the Senate. Here one cannot promise quick passage-- for, as the Bill faces the Senate it awaits treatment by those who would interminably delay it, amend it to death, or shelve it forever. One can hope that this will not be its footnote in history. DEMOCRAT DEFICITS IN PAST CENTURY TOP $261 BILLION: A recent survey shows that the net total of deficits for the Democrats' 40 years in office from Buchanan through Truman was $261.7 billion. During 61 years of terms to which Republican presidents were elected, including budget estimates for fiscal 1958, the net total of deficits in budgets controlled by Republican presidents was only $1.5 billion. The correlation between Democrat deficits during the past century and the huge national debt, now $272.6 billion gross seems overwhelmingly significant. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD June 27, 1957 Last week the House of Representatives concluded action on the twelfth of the thirteen regular appropriation bills for the fiscal year 1958, original bud et proposals having been so far reduced by slightly over 4 billion dollars, or 7.2% The remaining bill is, of course, the 11-important one on foreign aid. It is now in the le islative process where the program is getting the closest and most searching scrutiny. This week I would like to discuss two particular items in last week's House proceedings: (1) on flood insurance appropriations and (2) the stock-piling of strate ic materials. On flood insurance, the Senate wanted ,14 million to get this pro- gram "off the ground." Some members of the House, as revealed in floor debate, wanted to "go along. ii I was not included among those who shared that feeling and voted a, ainst this appropriation. In so doing, I was in no less sympathy for those faced with the threat of flood-losses. How- ever, a $14 million appropriation for flood insurance would have meant this: the Federal Government would have initiated a program of underwrit- ing such insurance. In time, this would have incurred a potential $5 bil- lion liability to the Federal Treasury. Furthermore, the amendment would have had the Federal Government paying insurance agents a substantial com- mission. But the number of policies sold may not have been sufficient to guarantee repayment, through premiums, of losses to the Federal Govern- ment. The potential cost to the government over a six-year period could then, as stated, amount to about .5 billion, and the Treasury would have to tap the pocketbooks of the American taxpayers for this obligation. A federal flood in urance program has been a "dream" for years. As late as 1951 following the great floods on the Missouri River, the Com- mittee on Appropriations made an exhaustive study of the problem. It was the Committee's unanimous opinion at that time locrats and Republicans alike--that a government flood insurance program was unsound. In these times when the Congress is striving to curtail federal obligations it does not seem appropriate to embark on a new scheme which would add billions to an already overburdened U. S. Treasury. By a substantial argin the ap- propriation was denied. The second item in this letter is concerned with an amendment before the House that called for $10 million to continue the government subsidy on tungsten, which is listed as a strategic material. Congress has al- ready amply provided for a stockpile of the various stategic materials. For example, to date the tungsten stockpile has been built up to a point where we would have at our disposal a 6-year wartime supply. The proponents of the $10 million appropriation contend that money must constantly be available for the purchase of tungsten to aid the min- ing industry. They argued that to curtail the present program would be a serious economic blow to certain areas of the West, and that in time of emergency the means of supplying this essential metal would not be immed- iately available. The tungsten mining industry really wanted a continu- ation of the subsidy even though there is an ample tungsten stockpile for all puposes including wartime conditions. Back in 1953 Congress extended the program of purchasing strategic materials to help producers for two more years. During this period the Government bought $187,562,000 worth of surplus tungsten for the strategic and critical stockpile. The federal government paid a premium to domestic or U. S. producers under this legislation. Then in August, 1955, President Eisenhower vetoed a bill that would have extended the program, his reason being: "The provisions (of the bill) would apply to only a small segment of the domestic minerals industry and would not reach the fundamentals of the program The interests of the domestic minerals industry will be better served by proceeding with the careful development of a long-range minerals program than by approving a stop-gap measure extending substantial Government aid to only a segment of industry. 11 In his Budget for the coming fiscal year the President states that there is $260 million worth of tungsten on inventory which "cannot be ab- sorbed within existing stockpile objectives. 11 With these facts in mind, Your Congressman voted a{ ainst the expen- diture. A YES vote would have forced federal officials to buy minerals which are not needed at an exhorbitant price. I am glad to report that the House rejected this unnecessary federal spending. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD July 4, 1957 This past week your Congressman attended a small luncheon on Capitol Hill where Secretary of State Dulles was the principal guest. Quite nat- urally the ten members of the House who were present questioned the Secre- tary on the progress the United States is making in our efforts against the threat of world Communism. Secretary Dulles was optimistic about the continuation of world peace as long as the United States and its allies stick together and keep pressure on the Soviets and the Red Chinese. He was definitely disturbed that some of our allies and some Americans were succumbing to a "soft" view in reference to Red China. The Secretary of State indicated he was making a major policy speech on the Red China problem. He discussed with us the content of his add- ress and because his views are sound in my opinion I would like to include a few quotes: "Internationally: the Chinese Communist regime does not conform to the practices of civilized nations; does not live up to its international ob- ligations; has not been peaceful in the past and gives no evidence of be- ing peaceful in the future It retains power not by will of the Chinese people, but by massive forcible repression "We have abstained from any act to encourage the Communist regime, morally, politically, or materially We have not extended diplomatic re- cognition (To do so) would have the following consequences: (1) The many mainland Chinese who seek to change the nature of their government would be immediately discoura! ed; (2) the millions of overseas Chinese would feel that they had no Free China to which to look (3) the Republic of China would feel crushed by its friend (4) the free Asian governments of the Pacific and Southeast Asia would be gravely perplexed "United States recognition of Communist China would make it probable that the Communist regime would obtain the seat of China in the United Na- tions The Republic of China is entitled to a permanent seat and "veto power" in the Security Council. 11 I know we can all agree that to admit Communist China to the United Nations and to give her the veto power would, as far as the free world is concerned, destroy the effectiveness of the UN. By supporting the UN and by adopting a policy of mutual defense we are waging a strong and successful fight as ainst the Kremlin. Since 1950 when our Lilitary Assistance Program was initiated, international Commun- ism has not acquired any land area or additional populations through agg- ression or subversion, with the sole exceptions of Tibet and North Viet Nam, which were already heavily infiltrated by the Communists in 1950. In other words, America, by the adoption of a forceful anti-Communist policy and by a willingness to implement it with a powerful U. S. Army, Navy, and Air Force, has helped to stop the Soviets and the satellites in their tracks. Personally, I am proud of Secretary Dulles' record of maintaining the peace and keeping the Kremlin and Peiping on the defensive. SBA: The House of Representatives on June 26th voted 392 to 2 to make the Small Business Administration a permanent agency and to increase some of its powers. Established in 1953 on the recommendation of President Eisenhower, the SBA was the first independent Government agency created to serve and represent all small business both in peacetime and in periods of national emergency. SBA has four general functions. It will make direct loans or partic- ipate with private lending agencies to assist a small business which has a legitimate need for money not available on reasonable terms elsewhere. It makes disaster loans carrying 3 per cent interest to rehabilitate busi- nesses or homes damaged or destroyed by storms or other disasters. This program was of great benefit to Ottawa and Kent counties following the tornado of a year ago. SBA, in cooperation with other government agencies, is charged with assisting small business in obtaining a fair share of Government contracts. All or a part of 19,123 government contracts have been set aside for small business in the past four years. Over 1.6 billion has been involved in these contracts. SBA also offers its services in counseling small firms on financial problems or in selling to the Federal Government. Since its inception SBA has approved 182 business loans in Michigan, involving a total of $11,300,000. It has authorized 140 disaster loans in our state in an amount totaling $1,000,400. All or a great part of 1132 government contracts involving 27,058,000 have been set aside for small business in Michigan. Nationwide SBA has approved 6,443 business loans and has authorized disaster loans in excess of $60 million. Its losses in four years came to $102,377, an amount represented by 6 loans. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD July 11, 1957 BILLION DOLLAR ..ISTAKE: Inconsistent with Congress' struggle to re- duce the budget--and therefore insure us against inflation--is Senate Bill 555, which would authorize a Federal dam project at Hells Canyon, Idaho, on the Snake River. If S. 555 were to become law, it would mean an outright expenditure of a billion dollars from the U. S. Treasury and a denial to this country of the benefits of assistance from non-Federal sources in the development of our hydro-electric resources. The passage of the Bill would mean that the development of "cheap hydro-electric power" in the Pacific Northwest with federal funds would entice industry and consequently employ- ment out of our own state, Michigan, into that area. During hearings on the matter, it was affirmed that the total cost of the project at Hells Canyon (for at-site and downstream power) would amount to 651,800,000--36 million of which Michigan must pay! In addition, Uncle Sam would be liable for over $400 million in damages to the Idaho Power Company, inasmuch as that concern has started construction with its private enterprise project based on a license from the Federal Power Com- mission. Michigan's share of this tax liability with its share of other losses would equal $22.4 million. The Democratic members of both the House and Senate seem terrifically attracted by the idea of a Federally subsidized dam at Hells Canyon--but un- fortunately they are blinded by this fact: though the Pacific Northwest will benefit locally from cheap public power, the rest of the states (e. g. Michigan) will suffer through tax payments to finance construction of the dam. In addition to all the actual project-costs (incidentally, they are nearly double the estimate originally given by the proponents of Hells Can- yon), S. 555 would destroy the private project now under construction. In 1958 this three-dam project of the Idaho Power Company could start paying local, state, and Federal taxes on its own power generation. With private enterprise doing the job, the Federal Treasury would be receiving rather than spending tax money. Private enterprise has constructed 3/4 of the reclamation works in this country, and reclamationists are strong believers in private enter- prise. The whole purpose of the historic Reclamation Act of 1902 was to provide for the Federal financing of sound reclamation projects which could not be undertaken by state or local interests. Nowhere in the Fed- eral reclamation program is it proposed that the Federal Government should exclusively develop our water resources. Secretary Seaton has recently estimated private and public power needs for the next 20 years at $49 bil- lion. To find these billions, and at the same time to meet our primarily essential defense costs, it is necessary that all avenues of assistance-- including private business--be utilized. The people of Michigan might well direct this question to supporters of the Hells Canyon Bill: When private concerns are willing to finance a project--and thereby provide for paying off whatever taxes such a project would incur--why should the Federal Gov- ernment step in with a project that would cost the public money? It appears from recent action taken by the House Committee on Inter- ior and Insular Affairs that the Hells Canyon Bill will not be reported to the House and that therefore it is virtually dead. All Republicans on the committee opposed the Hells Canyon project with the expenditure of federal funds and were joined by several Democrats who likewise believe in protect- ing the Federal Treasury. One important and final word--a careful analysis by the Federal Power Commission indicates that the non-federal dam will not be any more harmful to conservation interests than the project constructed with tax funds. SOCIAL SECURITY BRINGS 61.4 MILLION TO FIFTH DISTRICT MONTHLY: Accor- ding to the Department of Health, Education, and Welfare a growing number of Kent and Ottawa County residents are receiving benefits from social sec- urity. On December 31, 1955 there were 22,180 persons in the two counties who received social security checks every month totaling a little over $1 million. One year later--December 31, 1956--this figure jumped to $1,450- 662 each month with 25,397 persons in the Fifth District receiving these earned benefits. At the end of the past year 14,209 persons or their widows were re- ceiving benefits because of age. But in addition 2,875 children in our two countries were recipients of funds under the survivors insurance provis- ion of the Social Security Law. Likewise 3,041 widows or widowers and 643 mothers were beneficiaries under the survivorship provision. Nine out of ten mothers and children in the Nation are now assured of monthly payments if the insured breadwinner of the family passes on. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD July 18, 1957 A blow was dealt to the Congressional economy drive last week when the House voted 183 to 230 to keep a "rider" in the Military Construction Bill, empowering Congress to veto efforts by the Department of Defense to get the Government out of private or civilian-type activities. The Hoover Commission found that the Department of Defense has been operating more than 2,500 business-type activities such as rope manufac- turing, coffee-roasting plants, various kinds of repair shops, dry-clean- ing shops, laundries, etc. The Department was seriously obstructed in eliminating these activities by the law which provided that before it could dispose of any civilian-type activities, a report had to be made to the Defense Appropriations subcommittee of the House and its counterpart in the Senate. Under that law the two committees had to approve the pro- posed discontinuances. The Secretary of Defense submitted in fiscal year 1955 about 60 proposals for the disposal of military civilian-type activi- ties. On the list of proposals were included a number of cobbler and pressing shops, laundries, etc. The group on the subcommittee then spent nearly two weeks simply determining whether the Department of Defense should get rid of such establishments, involving a minimum number of em- ployees. It was the most complete waste of time I have ever experienced on that subcommittee, because under that procedure the subcommittee was called upon to hamper and hinder the Defense officials in their effort to economize and rid the military of activities which were competitive with private enterprise. With the repeal of that unnecessary provision last year, the Secre- tary of Defense has curtailed or closed more than 500 business or indus- trial-type activities. The "rider" in the bill passed last week grants veto power to either the House or Senate over any decision of the Department of Defense to ter- minate or reduce these activities which have been in existence 5 or more years and employs 10 or more civilians. I supported efforts to remove this roadblock to further action in order to assist the Defense Department in promoting additional economies; in order to encourage and benefit small business enterprises; and to re- lieve the Congress of an unnecessary and unwarranted interference in the affairs of the executive branch of the government. I am convinced that the House took a backward step in this instance and hope that the Senate reverses the action. SOIL BANK In my newsletter of May 23rd I had to report that, because of a negative vote in the House, the Soil Bank had been deprived of acreage allotment funds for the fiscal year 1958. Last week when the Agricultur- al Appropriation Bill was returned from the Senate, the House accepted its amendment and authorized a continuation of the Eisenhower-backed soil bank for another year. The Bill contains a restriction which would limit acreage reserve payments in 1958 by a dollar amount to any one producer. This was to eliminate the basis for some of the criticism of the program wherein some large operators have received checks for many thousands of dollars. The records indicate that the soil bank has been helpful in cutting back our agriculture surpluses. The reduction of these surpluses helps the farmer and will benefit the taxpayers generally. POULTRY INSPECTION BILL By a division vote of 93 yeas to 23 nays the House last week passed H. R. 6814, to provide for the compulsory inspection by the U. S. Depart- ment of Agriculture of poultry and products sold in interstate commerce. This bill as amended will not harm or inconvenience small poultry producers who sell locally. It does not, incidentally, regulate in any manner the handling, shipment or sale of live poultry, nor does it apply to the processing or sale of eggs or egg products or game birds. It should also be pointed out that specific exemptions in the Bill are provided for local producers who process their own poultry and sell it directly to household consumers or to restaurants or hotels for con- sumption on the premises. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD July 25, 1957 The Mutual Security Bill before the House last week provided for the authorization of an appropriation of $3,242,333,000. This was a reduction of 375 million from the authorization contained in the bill as it passed the Senate and a reduction of $622,077,000 from the amount originally re- quested by the President. Its title as a "Mutual Security Bill" is self- explanatory, and its purpose is manifold. On my radio program several days ago Rep. Walter Judd (R-Minnesota) and I discussed some of the justifications for this approach to our nation- al security. In Mr. Judd's words, "We are living on the same planet with a group of Communist conspirators seeking to change civilization as we en- joy it." This is certainly the one vital issue with which the free world is faced. We and our allies must stand up to the fact that while we must prevent a fighting war, we've still got a "cold war" on our hands, and it must be fought as diligently and with as much precaution as though it were taking place on a battle field. Our primary weapon, therefore, is a sound mutual security program. The House Committee on Foreign Affairs considered the studies and find- ings of several government agencies, held hearings at which 91 witnesses testified, and then with all the information available reported this Bill to the House, saying: "The mutual security program is essential to the national interest and security of the United States and should be contin- ued. If The Committee made two observations in its report: (1) Events of the past year--e. g. the Soviet suppression of the Hungarian Revolt--have re- moved any uncertainties that existed a year ago as to the policies and tac- tics of the Soviet Union and the basic need for an alliance of the Free World; and (2) our contribution to the free-world defense efforts have been small in comparison to the expenditures of our allies. The Communists have a direct control over far more territory, man- power, and resources than does the United States. However, our advantage lies yet in the fact that we (1) have a superior surface Navy, (2) are ahead industrially, (3) we are bolstered by more allies than are the Rus- sians, and (4) we have more overseas bases. .It is largely because of the Mutual Security Program that we have 250 overseas bases forming a ring around the Iron Curtain. Only two of these bases are on land under complete United States control. They are in Alas- ka and Okinawa. For the other 248 bases we are dependent upon an alliance with those countries that share a mutual desire for anti-Communist defense, and these range from Greenland to Turkey. Such an alliance provides domes- tic as well as international security. If it were not for these bases we would be required to build defenses solely within our own shores. By spending on the Lutual Security Program less than one-tenth of what we spend on our U. S. Military Budget we are able to double the power of our own Navy and Air Force and to increase the strength of the U. S. Army 10 times. If it were not for this cooperative program with our allies, the cost of our own national defense on a "go-it-alone" basis would be nearer $100 billion a year than the present 38 billion. Lastly, I think it is well to remember that this is not a foreign-aid, give-away program simply to buy friends. Actually it is the most economi- cal method of providing for the mutual security of the free world and of defending the United States from those who would destroy our way of life. EISENHOWER BOX SCORE Congress approaches adjournment with only 15.8 percent of President Eisenhower's legislative program approved. The Congressional Quarterly's analysis of action on the President's 203 requests shows that 32 of them have gone through Congress successfully. The 15.8 percent score compares with a 26 percent approval score at a corresponding stage of the 84th Con- gress. The Democratic-controlled 85th Congress through July 9th backed Pres- ident Eisenhower on 43 (or 65 percent) of the 66 roll call votes that pre- sented clear-cut tests of support for his views. By contrast, the Democrat- ic 84th Congress endorsed his stand on 72 percent of such issues and the Republican 83rd Congress on 83 percent of them. AGRICULTURAL YEARBOOKS I still have on hand in my office several copies of the Department of Agriculture yearbooks for the years 1954, 1955, and 1956. If anyone would like one--or all three-of these books please write me at the House of Representatives in Washington and I will be happy to provide you with what- ever ones you want. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD August 1, 1957 This past week the House of Representatives had afull schedule invol- ving complex, controversial, and costly legislation. The decisions in each instance, for various reasons, were extremely difficult to make. Here is what happened and here are my views in each case: MILITARY APPROPRIATIONS. Earlier this year the House cut about $2.5 billion from Ike's budget for the Army, Navy, and Air Force. Although I favored certain cuts in expenditures, in my judgment a reduction of this magnitude would endanger our national security. The Senate subsequently increased the funds for the Armed Forces by approximately $900 million over the House total. In conference between the House and Senate a compromise was worked out that provided 3444 billion, which is an amount about one- third higher than the House figure but two-thirds lower than what the Sen- ate proposed. Vill this be sufficient to equip and train our Army, Navy, and Air Force adequately so that the Soviet bosses in the Kremlin will not kick off smother war, big or small? With several exceptions our Armed Forces should have sufficient funds this year to keep America strong and ready, and I am convinced that Secretary of Defense Wilson, through sound management, will de a first-class job in achieving a powerful national defense program with the minimum necessary funds. Incidentally, my fight to authorize the Army to close the unneeded hospital in Massachusetts has been won. If the Army now closes out on this wasteful operation, and I am certain Secretary Brucker will do so, the tax- payers will be saved over $500,000 a year. I intend to continue the battle against the same type of waste in the operation of the Army hospital in Ar- kansas. POSTAL PAY RAISES. A strong case can be made for a fair pay increase for our 500,000 post office workers and other government employees, inclu- ding those in the military service, to compensate for increased living costs since the last pay boost about 2 1/2 years ago. I will support such legis- lation. However, the bill passed by the House goes far beyond in that it provided for an across-the-board increase of $546 per man each year, or an 11% boost in wages. The facts indicate the cost of living has gone up 4. 5% since the last federal pay raise in 1955. The postal workers pay bill approved by the House will cost the Federal Treasury $317 million each year. A comparable percentage wage increase for all other federal employees would add an additional $550 million in annual federal expenditures. If you add to that a similar pay boost for the Armed Forces the total cost to the Federal Treasury is over $2 billion per year. Your Congressman is convinced the President will veto any proposal that goes far beyond an increase in the cost of living. This means the bill passed by the House will not become law. It therefore appears more sensible and honest to favor a bill that is a fair wage increase and one that has a real chance of becoming law. It is interesting to note that the members of Congress who rammed the postal pay bill through the House are primarily the same members who consis- tently fight any increase in postal rates. The post office deficit is about $1,500,000 per day or nearly $700 million per year. If the Congress increa- ses postal pay by over $300 million each year it means the Post Office De- partment will have an annual deficit of a billion dollars. This postal def- icit as we all know is paid for by every individual taxpayer. It seems to me that the users of the mail should pay a greater share of the cost. FEDERAL AID TO SCHOOL CONSTRUCTION. The House on a parliamentary man- euver by a vote of 208 to 203 defeated any further consideration of school construction legislation with federal funds. The specific bill before the House was unsound, but I do not approve of whipping a measure on a parlia- mentary technicality. Admittedly there is a shortage of school classrooms in the United States but the problem must be pinpointed. A good argument can be made that Uncle Sam should offer temporary assistance to alleviate that problem in those specific communities where there is a need and where the local citizens have conscientiously tried to solve their classroom deficiencies. However, the bill before the House would have paid out 51% of the federal funds to 19 states who either now have no shortage of school buildings or will have none by June 1958. In contrast the bill would have given only 19% Federal aid to the seven states where more than half of the shortages exist. In other words, the formula for distribution was completely wrong. It would not have helped adequately where the real need prevailed. Until the House Committee on Education and Labor proposes legislation that would allocate federal funds on a need-and-demonstrated-effort basis, it is my prediction there will be no school aid bill approv ed by the House for a while. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD August 8, 1957 Your Congressman has consistently endorsed and supported the work of the two Hoover Commissions toward efficiency and economy in the Fed- oral Government. Their record (73.8% of the Commissions' recommenda- tions having been accepted by the Executive Branch) is ample proof that they have served a good purpose. However, in a recent controversy I have had to take the side that would oppose the enactment of Bill H. R. 8002, advocated by the Hoover Commission. This bill would have the Bud- get presented to Congress on an accrued expenditure basis. This would be an alteration--rather a "gimmick"--i in the bookkeeping system of our Federal Government, which, while intending to promote economy, would quite probably inflate governmental expenditures. The proponents of this bill at one time claimed it would "save over 33 billion. " Actually they have not proven it will save one penny. If this bill becomes law the "big spenders" will be able to sell more easily their new projects and programs to the Congress. H. R. 8002 would put Uncle Sam on installment buying, a few dollars down and pay the rest of the contract over the years. It is my considered opinion that such a policy will result in the Congress committing Uncle Sam to vast future expenditures. Experience clearly shows it is very easy to convince members of the House and Senate to put up $1 million the first year to initiate construction on a five year 6400 million multi-purpose hydroelectric project, but that once the down payment is made Uncle Sam must continue or lose his initial investment. In contrast, if the full 400 million had to be made available the first year, Congress would not be as prone to go ahead. Installment buying is the heart of H. R. 8002, and if the government is to save money, it can't be done by this method. LEGISLATIVE ROUNDUP Two items came up last week that I feel deserve some comment. First: The passage of H. R. 2147 by the House on July 31st, in my opinion, was a regrettable occurrence in view of the Congressional economy drive. This bill would authorize the Department of the Inter- ior to construct a dam in the Federal Reclamation area in San Angelo, Texas. The project, which in a sense belongs to the "Hells Canyon cate- gory, if would cost about $32 million--$14,460,000 of which would be non- reimbursable. Rep. John Rhodes of Arizona has set forth the following criticism of H. R. 2147 in his minority report to the Congress: "The fact that this project is not an irrigation project but is a thinly dis- guised municipal water project is further borne out by the fact that the city of San Angelo, through a non-profit corporation, San Angelo Water Supply Corp., has offered to underwrite all of the cost of the project chargeable to irrigation. It is admitted that irrigators cannot repay more than 34 million of the irrigation charges. As a sincere advocate of the historic theory of reclamation, I submit that there is not a pre- sent need for this project and that even under the multiple purpose con- cept of reclamation, this project does not fit under the reclamation tent. " In concurrence with the above statement, Your Congressman voted against H. R. 2147. Second: I have always agreed with the farmers in Kent and Ottawa Counties that wheat grown on farms and used for feed, seed, or human food on the premises should be exempted from marketing quotas and their pen- alty provisions. In the Fifth Congressional District there are a great many family-type poultry and dairy farms that certainly deserve this ex- emption. H. R. 8456 amends the Agricultural Adjustment Act to exempt wheat producers from any liability where the wheat crop is fed or used for seed or food on their farms. Specifically, the exemption would in- clude wheat production up to 30 acres for on-farm consumption. I supported this bill unconditionally. ANNOUNCELENT Early in October in Port Huron there will take place the Exhibit of Business Opportunities--sponsored by the Department of Defense. Those especially interested in industrial and labor conditions in Michigan may want to attend this Exhibit. This conference could be most helpful to small businesses interested in Defense contracts. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD August 15, 1957 This past week the legislative floodgates opened wide with the House of Representatives considering a multitude of bills. With the final ad- journment date drawing near there is always a wild scramble to enact legis- lation. This session is running true to form. Although impractical, it is often said in Capitol cloakrooms--the public and Congress would be better off if no bills were approved in the dying days of a Congressional session. It can be emphatically stated that the House and Senate in an adjournment atmosphere do not as fully consider and debate proposals as is normally the case. Rather than be placed in this situation, it would be far wiser for the Congress either to forget about adjournment or put over bills until the next session. In addition to the 30 or more bills approved on the consent calendar and a score of private bills, here's a partial list of the many proposals considered by the House in a five-day stretch: Appointment of cadets to the Air Force Academy; Atomic Energy Commission Construction authority; Inter- national AEC implementation; Federal employees salary increases; postal rate readjustment; Supplemental Appropriations for numerous agencies; meat promotion legislation; amendments to the Universal Military Training Act; cabaret tax reduction; Social Security coverage for policemen and firemen; alcohol and tobacco tax refunds; implementation of the Panama Treaty and Agreement; and several veterans benefit bills. While members of the House were battling back and forth on this impos- ing list of proposals, the Senate concluded action on Civil Rights legisla- tion. The big question at this writing is: What will the House do with this controversial bill? The Senate version of this proposed legislation, by the inclusion of a sweeping "jury trial" amendment, goes far beyond the bill approved in the House. Senate changes radically revised existing and historical legal procedures. At issue is the fundamental power of a court to enforce its orders promptly. Our American judicial system could be ham- strung by the far-reaching Senate amendments. I hope the House will reject the Senate version and stick as closely as possible to its carefully considered bill overwhelmingly approved several months ago. President Eisenhower strongly favors the House version, which would be a major step forward in guaranteeing the right to vote without en- dangering our legal system. Most Republicans in the House will support Ike's position, while the Democrats will be badly split up. The top stra- tegists on both sides of the political aisle are planning their parliamen- tary moves carefully. The votes, and there should be several on this prob- lem, will be close. CIVILIAN ATOMIC ENERGY FOR MICHIGAN: Michigan had a big stake in one of the Atomic Energy bills before the House last week. To expand our indus- try so more jobs will be available, Michigan must be in the forefront on the development of electrical energy by atomic reactors. Michigan is not endowed with natural resources that exist in the Pacific Northwest where low cost power, built in the main with federal funds, entices more and more industrial development. To overcome this competitive disadvantage Michi- gan's industry must move forward with atomic power development. In August, 1956 the Power Reactor Development Corporation started con- struction on a "fast breeder reactor" near Monroe. It is a partnership project with private industry spending approximately $58 million of its funds and Uncle Sam participating in the research costs to the extent of a- bout $8 million. If all goes well the plant will produce electrical ener- gy by mid-1960. Some question has been raised before the Atomic Energy Commission as to the safe operation of this type of reactor. This of course is a matter for the Commission and its experts to decide. The bill before the House, as it came from the Joint Congressional Committee on Atomic Energy, might, and I emphasize "might," have slowed down or precluded necessary research on this Michigan project. Fortunate- ly an amendment was approved that will permit the continuation of essential research on the "fast breeder reactor" so that all of the problems inclu- ding that of "safety" will be resolved. If the Senate concurs, this Mich- igan project, which is vital for our industrial growth and more jobs, will not be stopped dead in its tracks. One of the fundamental issues at stake in the atomic construction leg- islation was the long-fought battle between private and government-operated power facilities. On the various roll calls on the bill the Democrats con- sistently approved an expanded government-owned and operated program while the Republicans favored a partnership program with emphasis on private in- dustry doing the job. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD August 22, 1957 By the time this newsletter is read the curtain should be just about down on the first session of the 85th Congress. All the supposedly well- informed "dopesters" predict adjournment on Saturday, August 24th. From all appearances the House and Senate can and will conclude action on all "must" legislation by that date. Obviously there will be bills which the House has passed with no Senate action and vice-versa, but in the second session, which begins in January, these problems can be tackled and re- solved. What will the pages of history indicate as the record of the 1957 session of the Congress? Economy in government was the big issue in the eight months of this past session. What was the net result of the assault on the budget submitted in January? From the facts at hand it appears that the various appropriation bills will be cut approximately 7 per cent or accumulated reductions of over $4.5 billion. Included in this total dollar reduction, however, is one item of $1.2 billion, which is purely a bookkeeping transaction, so that the net cut-back in new funds for the numerous federal agencies must be reduced by that amount. As a whole the Congress worked hard on the budget problem. In my judgment the House and Senate slashed too deeply on funds for our nation- al security while at the same time it did not prune closely enough on other items and programs. What was the "economy" record of the eighteen Michigan members of the House of Representatives during the session? According to the August 2nd issue of the Congressional Quarterly, a news reporting service on Congres- sional activities, the six Democrats from Michigan voted for "economy" only 14 per cent of the time. The twelve Republican House members from Michigan had a 63 per cent batting average for "economy." Congressman Clare Hoffman of our state was one of the champion "economizers" with a 96 per cent average for budget slashing. While the Congress battled over the Budget, President Eisenhower himself put new downward spending and obligation limitations on all fed- eral agencies for the current fiscal year. In addition Ike made several sizable slashes in the budget requests so that the net result in this twelve month period is most encouraging for real progress in holding down Uncle Sam's expenditures. On the other legislative issues the Democrat-controlled Congress moved at snail's pace with much of the President's program having a rug- ed time. It is fair to say that when Ike fights hard with the Congress for a bill in which he strongly believes, he is accused of dictating, while on the other hand when the President lets the Congress exercise its judgment he is chided for a lack of interest. Any way you look at it, the White House has plenty of "second-guessers" and "Monday morning quar- terbacks." I can only say from my personal experiences that the President and his staff have done a fine job in working with the members of Con- gress--both Republicans and Democrats--in seeking sound and constructive cooperation on vital legislative matters. ACTION ON THE DISPOSAL OF FEDERALLY OWNED LAND: The House Committee on Agriculture on August 16th reported favorably on my bill, H. R. 7900, to authorize the Secretary of Agriculture to sell the 6225 acres of land owned by Uncle Sam in Ottawa County. The land under the terms of the bill would be sold to the "highest responsible bidders." The Committee report on the bill directs the Secretary of Agriculture to consult with the Board of Supervisors of Ottawa County and the West Ottawa Soil Conser- vation District on the sale of this land. In other words, this federally owned land would not be sold to "speculators" or those who would denude it, but sales could be made to those who will use it for constructive and productive purposes. Through a proper sales policy the townships will have new revenue for local schools and government expenses and at the same time the federal Treasury will be reimbursed for its investments over the past 20 years. If at all possible I hope to get favorable House con- sideration on this bill prior to adjournment. The legislation would then {0 to the Senate for action in the next session. Under the bill it is not mandatory that all of the land be sold in a block, but rather it is con- templated that the total acres will be disposed of in smaller parcels. Your Washington Review KENT Congressman OTTAWA 5 JERRY FORD August 29, 1957 PERSONAL PLANS AND ADJOURNMENT This will be the final newsletter in 1957 unless Congress re- convenes this year or the current session drags on indefinitely. Al- though in my previous forecast I missed the adjournment date by at least a week there have been no serious results except a shortened va- cation on the shores of Lake Michigan for our family. We, as a family, had hoped to spend two weeks at the beach before school starts for our two older boys. It now looks like part of the family will be there for at least ten days with your Congressman dividing his time between Wash- ington and Michigan. SEE YOU IN OUR MOBILE OFFICE I hope to get a few days off before starting the annual "mobile office" tour of Kent and Ottawa counties. The first mobile office visit is scheduled for Grandville on September 12th. The tour contemplates that Frank Meyer, a member of my staff, and I will visit 30 communities in the 5th District between mid-September and November 19th. We look forward to seeing you and hope all will stop in with any problems, sug- gestions, or comments--including criticism. The date for each community will be announced well in advance. We have tried to pinpoint our stops SO that the Congressional mobile office at one time or another during the two month period will be at least within 6 miles of the home of every resident of our district. In addition my office in Grand Rapids will be open everyday from August 27th to December 31st. It is located at 518 Michigan Trust Buil- ding and the phone is GL 69747. Irene Schroeder and Bob Rice will be in this office to answer inquiries or help with any problems. The Wash- ington office will also be open with Mildred Leonard on hand if you are visiting the Nation's Capital or need help there. LAST MINUTE NOTES In the nine sessions of the Congress, 1949 through 1957, your Congressman has sou; ht to maintain a first-class attendance record in the House of Representatives. For the first eight years I batted 97 per cent. This year the average should be about the same. As of this time there have been 209 quorum or roll calls. I've missed 7. Four of these absences occurred while I was hospitalized for a week early in the session. Understandably there is considerable public interest in the status of our national debt. Here is an interesting fact: On August 16, 1957 the public debt was $271 billion. One year earlier it totalled 3274.4 billion. This definite improvement in Uncle Sam's debt obligations is the result of President Eisenhower's new spending limitations on the nu- merous federal agencies and the economy efforts of the Congress. One of the bills not programmed by the House in the closing days of the session was the Tennessee Valley Authority financing legislation. The Senate passed this controversial measure and it will be on the House agenda early in 1958. From my analysis of the proposal, it is unsound and dangerous for several reasons, but primarily because any expansion of TVA with its low electric power rates, subsidized in part by Michigan taxpayers, will entice more industry and reduce job opportunities in our state. In the period from 1934 through 1956, Michigan's taxpayers have contributed $102 million in federal taxes to build and operate TVA. Right now the state of Tennessee is urging Michigan industrial firms to move to that state because of cheap power rates. Uncle Sam has invested over $1.5 billion in TVA including Michigan's $102 million share. It's about time TVA stood on its own feet by substantially increasing the repayments to the Federal Treasury with interest. The record shows that the vast majority of Republicans in Congress oppose the expansion of TVA at the expense of the public generally. It is hard to see how members of Congress from Michigan--Republicans or Democrats--could vote for legislation which will further subsidize TVA at the expense of Michigan industry and jobs. The test on this will come early in the next session. ****** So long with the newsletter till next year. Thanks for all your interest in our weekly reports. Hope to see you this fall in the Fifth District.