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White House - Congressional Leadership Meeting, 5/6/69 (includes minutes and Ford notes
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White House - Congressional Leadership Meeting, 5/6/69 (includes minutes and Ford notes
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Robert T. Hartmann Papers
House of Representatives Subject Files
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Supreme Court of the United States. 2/2/1790-
Crime
Food stamps
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These documents were scanned from Box 106 of the Robert T. Hartmann Papers at the Gerald R. Ford Presidential Library.
CONGRESSIONAL LEADERSHIP MEETING
AGENDA
8:30 - 8:45 a.m.
I. Job Corps Review
8:45 - 9:00 a.m.
II. Crime and the Rights of Society: Message
9:00 - 9:15 a.m.
III. Program on Hunger
9:15 - 9:30 a.m.
IV. Senate Report
9:30 - 9:45 a.m.
V. House Report
=
GERALD
FORD
DIARY OF WHITE HOUSE LEADERSHIP
MEETINGS -- 91st CONGRESS
May 6, 1969
At 8 40 a.m., the President introduced Shultz, who
reported on his April 25 statement to the Senate sub-
committee on employment, etc., recommending that
the Job Corps be integrated into a comprehensive man-
power training program. He reviewed the charts used
in the presentation. Of each 100 recruits accepted
by the Job Corps, only 74 actually arrive; 61 remain
longer than 30 days; 25 graduate; 20 are placed either
in jobs or in the military within 90 days after gradua-
tion: and 17 are actually placed in jobs.
Ford urged that charts be made available to the press
and to Members in order that they might get more cur-
rency. Javits reported that a resolution would soon be
debated by the Senate to stop Presidential action closing
Job Corps. He inquired if the President intended to act
if the resolution is adopted. The President did not reply.
Javits said that the Job Corps may not be economic but
that it fills a need in providing some help for hard -core
dropouts and poverty youth problems. He recommended
that the Administration increase money available for
summer jobs to ease the adverse impact.
Prouty said that Job Corps money has been wasted and
skills had not been taught. He called attention to a GAO
reportmoon to be released which dramatizes this. Ayres
said that Perkins will have some bill on the Floor the week
after Memorial Day recess. However, the Republicans
should be able to maintain the President's position during
Floor debate.
RMN said that upwards of $2 billion currently is being spent
in all federal programs dealing with job training: each has
its own champion who would argue that each did a little good
and therefore its inefficiencies should be disregarded; If we
are to get control of this hodgepodge of government programs,
FORD
i
GERALD
LIBRARY
2
we must start somewhere. He complimented Shultz for
the program he has outlined. Javits suggested that the
President address a letter either to him or to Dirksen
citing relevant figures for use in Floor debate. Taft
said that Members had complained not so much about
the closing of Job Corps as about the lack of advance
backgrounding. Shultz replied that the reason was the
volume of telephone calls and letters the Department
has been receiving from Members of Congress concerning
these 59 centers and other matters. RMN said that all
of the Great Society programs were somebody's "sacred
cow," He cited model cities, which he described as
"not even half-baked, not baked at all, just dough in
the oven." Dirksen said that the GAO report world
reflect the horrible findings of immorality and suggested
that the value of the Job Corps should be questioned
when it not only fails to help young people but actually
hurts them by placing them in the company of pervetts.
RMN recalled the statement made during the campaign
concerning Supreme Court decisions which have weakened
the peace forces in their struggle against the criminal
forces. The ultimate remedy is different decisions from
the Supreme Court. In the meantime, other remedies
should be attempted. Mitchell said that a message on
the rights of the defendants has been prepared and will
be sent to Congress shortly. The message will recommend
establishment of a Joint Committee on Crime and Defend-
ants' Rights to examine problems posed by recent Court
decisions and determine what remedies might be abailable,
either by statute or Constitutional amendment. Smith said
that he would rather see experts from the Bar rather than a
Joint Congressional Committee undertake such a study. He
said that Celler would block the effort. Rhodes said that he
could think of no precedent for executive recommendation for
the logislative branch to create a Joint Committee. Scott
said that he agreed with Smith and Rhodes and suggested
that Senator McClellan might resent the establishment of
FORD & LIBRARY BERALD
3
an additional committee dealing dealing with crime.
McCulloch said that the Administration should establish
a commission rather than A Congressional Committee in
order to control the membership of the commission and
the direction it takes. Dirksen said that he did not
believe in appeasing Celler; that he enjoys a good fight
even when he loses; and that he will be glad to introduce
the bill. I said that this is the most delicate issue the
Administration is likely to face because it involves the
balance between the rights of the accused individual and
the rights of society: that this is a prickly nettle; that any
decision to do anything is a courageous act involving as
it will the worst storm the Administration has experienced;
that it will activate every liberal in the academic community
and at the bench and bar; that I was impressed with the
arguments made by Smith, Rhodes and McCulloch; but that
the people were expecting the Nixon Administration to act
and even If we make the effort and fail, the people will
know where to put the blame for inaction: that I was not as
sanguine as some that the problems presented by court
decisions would yield to a legislative remedy; most will
require a Constitutional amendment; that whether the
remedy is legislative or Constitutional, the legislative
branch of the government is the initiating mechanism; that
I was not intimidated by the Pepper Committee because the
two Committees would have different functions; that the
function of the Pepper Committee is to hold hearings and
assemble empirical data, and ndigestible supply of which
we already have: and that the function of the Joint Committee
would be to foster legislation.
Arends said that whatever course is taken, the people will
welcome action in this field. RMN suggested that the matter
belleft to the judgment of the Attorney General and admonished
him to keep in mind the comments that had been made around
the table.
4
RMN then raised the Fortas question. Dirksen said that
Williams had already introduced a resolution denying tax
exemptions to foundations which pay fees to federal
judges. Ford reported that he had researched the
impeachment procedure; that an impeachable offense
was not necessarily an indictable offense; and that
action could be initiated by a single Member. At least
one or two Members are likely to introduce a resolution
soon. RMN asked Jerry if he were suggesting that he
can't control H. R. Gross. Dirksen recalled his experi-
ence in the Judge Ritter impeachment proceedings, and
said he would never care to go through such an experi-
ence again. He admonished all to go slow. Allott
said that while the Party should go slow, some effort
should be made to keep public pressure on Fortas, who
has proven twice by his conduct that he is not above the
"appearance of impropriety." Smith said that if an
impeachment resolution is sent to the Rules Committee,
it will likely be buried there. Mitchell advised the
Leadership "to keep the lid on -- more will develop later."
Cramer suggested that the Party could attack the problem
by introducing legislation concerning foundations and
legislation concerning disclosure of outside Income earned
by members of the judiciary. RMN said that a generous
government pays judges lifetime salaries because they
expect them to be like Caesar's wife. He said that Fortas
is the wealthiest and perhaps the most brilliant member of
the Court and he could not understand why he would consider
accepting such a fee under any circumstance.
Hardin reported on the testimony he will deliver tomorrow on
hunger and human needs. His testimony will acknowledge
that any improvement that might be made in welfare programs
would come to nothing if a lack of budgetary discipline allows
inflation to wipe out welfare increases. However, he said
that present programs barely keep the poorest people alive so
that they can continue to live undernourished. He said that
the Department favors the food stamp program over the direct
GERALD LISBURY R. FORD
5
distribution program. The testimony will call for an
increase in the present $340 million ceiling to $610
million. The $270 million increase will permit the
Department to increase the present average monthly
benefit from $58 to $100 for a family of 4 and to expand
the program into 400 counties not now covered. Those
withless than $30-a-month income will be given free
food stamps, and no one will be required to spend
more than 30% of his income for food stamps. The
eligibility line is at $3,600 per year. Ford inquired
if the $270 million was an add-on to the total Nixon
budget. The answer was negative. The additional
$270 million will come out of other parts of the hunger
food program, which now totals about $1.5 billion.
Mayo said that in connection with budgetary considera-
tions, it should be remembered that total payments to
the popr in the Nixon budget are $27.2 billion, compared
with $24.4 billion in the Johnson budget.
Since the President was committed to greet the Prime
Minister of Australia, the meeting adjourned at 10 20 a.m.
RICHARD H. POFF
FCRD
LIBRARY
FOR IMMEDIATE RELEASE
MAY 6, 1969
OFFICE OF THE WHITE HOUSE PRESS SECRETARY
THE WHITE HOUSE
PRESS CONFERENCE
OF
SENATOR EVEPETT MCKINLEY DIRKSEN,
AND CONGRESSMAN GERALD R. FORD
THE ROOSEVELT ROOM
AT 10:15 A.M. EDT
SENATOR DIRKSEN: Good morning, ladies and gentlemen.
Most of the discussion this morning centered around
the Job Corps program. We had Secretary Shultz and others
who discussed it and everybody put in on the discussion.
As you know, of course, they will cut the number of
the Corps, I think, from 104 to 54 or 59, with emphasis on the
fact that no corpsman will be left out of a program because
he will have his choice, pretty well, of any camp where
he wants to go. But we are weaponed now not only with the
findings of the Secretary of Agriculture, but also a rather
extended report by the Comptroller General. I have gone
through that report in large part and also the summary. I
think a valid case is made for what the Administration is trying
to do because it will produce efficiency and objectivity.
One of the difficulties with the program today is
that even after you screen your applicants, there are, what
is it, 30 percent who don't even show up for camp and then you
get a large dropout at the end of 30 days and a larger dropout
at the end of 90 days, so that the ultimate number who graduate
who find job placement is comparatively small considering
the cost.
The direct cost is about $6,600, according to the
findings of the Comptroller General, but if you add the
indirect cost it is $8,300 per corpsman. And that is a pretty
high amount.
We think we can do infinitely better and develop
a far more efficient program. And so this restructuring, I
think, is certainly a justified approach.
CONCRESSMAN FORD: I might add that out of the 100,
for example, who are referred or accepted for the Job Corps,
only 17 out of the 100 actually are placed on a job. It is
the aim of the Administration to make available as quickly
as possible and as immediately as possible these near-city
job training facilities, and, in addition, to try and open
up, as a more practical approach, the other training slots
for those who otherwise fall into the Job Corps training
BERALD FORD LIBRARY
program.
It is also the aim and objective of trying to help
this particular summer in making available job opportunities
for the individuals in our major metropolitan areas.
MORE
- 2-
The approach that is recommended by the Secretary
of Labor, in our opinion, is a far more effective way from
the point of view of getting the young people trained in a
far less costly process.
J. might make one other observation. We did discuss
the Administration's program in the area of hunger. The
Secretary of Agriculture is going to appear before a Senate
Committee tomorrow and will lay out what we believe is a very
broad answer to the demands on the part of all segments of
our society for a better administration and a more effective
hunger program.
SENATOR DIRKSEN: I might add, with respect to the
hunger and malnutrition program, that in the budget for
1970 there would be in direct authorization and appropriation
about $340 million. It is proposed now to add $275 million
to it.
That, of course, does not encompass other things that
are in the budget, such as school milk and other things, but
that will provide $615 million for the program.
It will, of course, be made a good deal more efficient.
Some of the waste and extravagance will be squeezed out. But
while you have both direct distribution and the food stamp
proposal, the emphasis will be on food stamps because
it appears that it can be done more effectively and more
economically.
CONGRESSMAN FORD: There is one other figure that I
think is significant, as pointed out by the Director of the
Bureau of the Budget. In fiscal 1969, $24.2 billion is made
available by the Federal Government for those below the
poverty level. In the fiscal 1970 budget, recommended by
this Administration, there will be $27.2 billion available.
In other words, a $3 billion increase over the funds
available in this current fiscal year.
SENATOR DIRKSEN: Do you have any questions?
C
Could you tell us the status of the NLF Treaty?
SENATOR DIRKSEN: Actually, there has been no change
that I know of.
0
I meant the NPT.
SENATOR DIRKSEN: You mean the Nuclear Non-proliferation
Treaty. It has not been discussed and, frankly, I have not
heard it discussed even on the outside or in the Senate for
quite some time.
TORD
?
Senator Dirksen, did you discuss with the
President at all the speeches by your colleagues, Senator
Aiken and Senator Scott asking for withdrawal of American
troops?
SENATOR DIRKSEN: No, it was not discussed, as such.
But I can say to you, there has been definitely no change
in the Administration program. There is no retreat.
MORE
- 3 -
Q What do you mean by that?
?
Senator, does that mean the Administration
plans or does not plan to withdraw troops under the cir-
cumstances which the President laid out in his press
conference?
SENATOR DIRKSEN: Well, I am not in a position to
discuss detail there. All I know, I think, is, there has
been no change.
Q
From what to what?
Q
What is the position at the present time?
SENATOR DIRKSEN: What is the position? The Paris
negotiations are going forward. There may be some work
going on behind the scenes -- that is a suspicion on my part.
But we are going right ahead to see if we can't wind this
thing up in an honorable way.
O
Senator, was there any discussion of the controversy
involving Justice Fortas?
SENATOR DIRKSEN: All I can say is that it was mentioned
almost in passing, because you treated it so generously
in the press and on TV. The speeches on the Senate and
House Floor speak for themselves. Beyond that, there was no
discussion.
CONGRESSMAN FORD: I might make an observation there.
I believe that this is a non-partisan issue. It has been
and it should be. The charges are very serious, including
the 11-month lag in the return of the fee. But it seems to
me that this is a problem that ought to be discussed between
the Majority Party, the Democrats, and the Republicans, to
see what is the proper course of action to take.
I think there are two areas where some action might
be taken. It seems to many in the House, particularly, that
there ought to be an examination of the distributions by some
of our foundations in the way that they have been making such
distributions; and, secondly, there ought to be consideration
of a disclosure requirement for the Federal Judiciary, just
like there is a requirement for the Executive and the
Legislative Branches of the Federal Government.
CI
Senator Dirksen, there are a lot of stories
appearing lately saying you have been giving the Administration
a bad time about a number of appointments. How do you feel
about those reports? Are those appointments discussed
in these meetings?
SENATOR DIRKSEN: All I can tell you is that if
I have a conviction on the subject, why, I utter it and
LEVERSE GERALD ? for
I think in so doing I express my fidelity to the President
since sometimes things come to your attention that may not
come to his ears or to his ministers in the Cabinet and
obviously he accepts that in the best of grace.
I think what happened on Saturday speaks for itself.
He invited me to go along down to see Jim Byrnes and we
went to the Derby together. So if anybody wants to put it
MORE
- 4 -
on the ground that there is some feeling about it, there is not.
Now, let me just amplify that. When it came to Mr.
Brown of EEOC, I said three weeks ago to Senator Scott here
at the White House that if his name came up I would put a hold
order on him until I knew a little more about him. That
was conditioned on the fact that Mr. Brown had been nominated
in the prior Administration. He went out to California
with the Commission before he was confirmed by the Senate
and there he participated in three days of hearings. Those
I ventilated freely on the Hill.
Now, that is the reason I wanted to know a little
more about his viewpoint. He did me the honor of coming
to see me yesterday morning. We spent 45 minutes together.
I had a chance to ask all the questions I wanted. I discovered
that he was a very personable fellow. He had excellent
antecedents and he knows pretty well where he is going
and altogether I was satisfied and I announced on the Senate
Floor that I would vote for him.
O
I would like to ask whether you feel Justice
Fortas should step down from the Bench?
SENATOR DIRKSEN: I expressed no feeling in the
matter. That is a matter for Justice Fortas at the moment.
MORE
FORD & GERALD LIBRARY
-5-
Q
Could Congressman Ford answer that question?
CONGRESSMAN FORD: Would you repeat the question?
?
Do you feel personally that Justice Fortas should
step down from the Bench?
CONGRESSMAN FORD: I think that is a decision he
has to make under the circumstances.
?
Do you favor an inquiry by a Senate committee into
the allegations made by Life Magazine about the Justice?
SENATOR DIRKSEN: I am not sure that I do. I would
have to examine those allegations very carefully to see whether
there would be an occasion for action. You know that Senator
Williams made the proposal that foundations ought to be denied
tax exemption privileges if, for instance, they subsidized
or hired or put somebody on their payroll who was in public
office. But he did not limit that resolution to the Members
of the Court. He included Members of the Executive Branch and
Members of the Legislative Branch, as well, and also went sofar
as to say that for a period of two years after their exit from
public office that the terms of that resolution should apply.
c
Senator, you have always opposed disclosure by
the Legislative Branch, if I am not mistaken.
SENATOR DIRKSEN: Peter, you are very imprecise in
your language. What I opposed was a disclosure of your income
tax.
2
What do you favor disclosure of?
SENATOR DIPKSEN: Well, I disclose under the modifi-
cations of Rule 42 and 44 of the Senate. So, if you are
R.
GHOMA
curious, Peter, go up to the Senate Clerk and ask to take
look at the one I have to file under Rule 44 because I think
I am going to file it today.
0
Senator, do each of you favor a disclosure rule
or law for the Supreme Court or for the Judiciary as a whole, as
you now have for Congress and Federal officials?
SENATOR DIRKSEN: It is a matter that probably ought
to be considered, especially so now that you have raised the
pay of the Judiciary.
CONGRESSMAN FORD: I think I said earlier that this is
something the Congress ought to consider, to have the same
standard for the Members of the Judiciary that we have for the
Members of the Executive Branch and the Legislative Branch.
0
I heard you say "consider" but do you personally
favor it?
CONGRESSMAN FORD: I think the argument is persuasive
under these circumstances that it should be done.
a
Did you get a reading of how the President might
feel about that provision?
CONGRESSMAN FORD: It was not discussed. I might add
just one point, because it was discussed by the President with
MORE
-6-
Senator Dirksen and myself, in the A3M controversy that we are
all familiar with, the President reiterated that he intends to
stand by the Safeguard system because it is the minimum necessity
for our national security.
O
Senator, could I go back to Vietnam for a moment?
Is it your feeling that the proposals of Senator Scott and Senator
Aiken are in fact a retreat and can we interpret your remarks
about there is no retreat"as a rejection of their proposals?
SENATOR DIRKSEN: You have to speak in the context of
time as of now. I know of no suggestion for a retreat or for
a dimunization of our troops as of now.
0
Did the Social Security proposals come up?
SENATOR DIRKSEN: No.
Q
Congressman Ford, could you give us any insight
as to whether there is any chance of getting the Social Security
measure through the House this year?
CONGRESSMAN FORD: I was somewhat surprised by the
announcement made through the press by the Chairman of the
Committee on Wavs and Means. I believe there is a great need,
a great demand for some action in the area of Social Security
in 1969.
Both President Johnson and President Nixon have said
that they thought there ought to be an increase in Social
Security benefits. I subscribe to the request made by both
the previous President and the present President. I would
hope that the Committee on Ways and Means could take affirmative
action.
THE PRESS: Thank you very much, gentlemen.
END
(AT 10:35 A.M. EDT)
LISTER GERALD ? FORM
JOB CORPS
THE WHITE HOUSE
5/6/69
new City Centers
Schetty
More training stoto
Seemmer job money
FORD in LIGRARY
\
CRIME I RIGHTS + OF of Society Court decesions - neveral of
1
previous decesions It
mitchell
Congress appoint, Commission heading
to Constitutional mension
HUNGER
Poverty Y Malnutron- -
Hardin
Program inadequate unles
Food stamp.
THE WHITE HOUSE
Ford stamp -340 / current certing
Preferable with $200 to #245 million
mome in 5.70. F
/
Direct Distribution 1
Special Feeding Pachage.
\
Expand-
\
1,5 billin - food
275
BLRRAD S. FORD LIGRABLE
242-FY69 Prov s
27.2-" - 70
THE WHITE HOUSE
non partican - -
Discloser- congres/ effective
Foundations - limitations
GERALU * FORD
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
MEMORANDUM TO SENATOR DIRKSEN/CONGRESSMAN FORD
MAY 6, 1969
THOUGHTS ON THE ABN
Just to clear up some confusion, to put an end to
some speculation, the President is not going to compromise with
the national security on the ABM issue.
He intends to stand his ground; there will be no
trumpets sounding retreat on this issue; the President is
going to fight it out along the line he has drawn; thereis
no "fallback position" on ABM because the national security
is involved. We believe he will win it.
The ABM system the President has asked for is the
minimum he believes essential for America's security in the
next decade. He cannot ask for anything less; he cannot
settle for anything less. This is what he relayed to us --
and what we are relaying to you.
Buchanan
LIBRARY GERALD ? SORO
CRIME AND THE RIGHTS OF THE CITIZEN
The President intends to send up sometime this week
a message dealing with Crime and the Rights of the Citizen.
What I can say about it is this: It calls upon the Congress
to make an exhaustive review of the revolution in criminal
law generated in the last decade by the United States Supreme
Court. It asks that we study the court decisions in the area
of confessions, line-ups, right to counsel -- and measure them
against a single yardstick: What has been their impact upon
law enforcement in the United States. Have these rulings so
thrown a screen of protection around the accused that they have
left society defenseless against the criminal. Is society paying
in the coin of security for these newly discovered Rights of
the Accused. That will be the subject of the message. In
terms of relations between Executive and Judicial and
Congressional branches of government, it will be, I think,
an historic message.
LIBRARY GERALD R. FORD
SENATOR DIRKSEN
JOB CORPS
We intend to go into the Senate tomorrow and defeat the
resolution to keep these Job Corps camps open.
The American people know what has been going on in
these camps; and those who don't are going to find out in
tomorrow's debate.
The reason basically why we are shutting down these
Job Corps camps is that the American taxpayer is not getting his
money's worth out of them, and the unskilled are not getting
their time's worth out of them.
We think that we can do a better job of training the
poor than these camps have been doing for $8,000 per man --
and the President intends to try something new.
No one is going to be thrown out onto the street. Secretary
Schultz is taking great pains to see that Job Corps enrollees find
their way into programs with more hope and economy, less waste
and corruption and genuine scandal.
THE GERALD P. FORD
HOUSE ACTION, PERIOD APRIL 29 THROUGH MAY 5, 1969
Tuesday, April 29, 1969
PRINTING RESOLUTIONS
The House agreed to 10 printing resolutions from the Committee on
House Administration authorizing certain printing.
COAST GUARD AUTHORIZATION
The House passed by record vote of 382 yeas to 2 nays H.R. 4153,
authorizing appropriations for procurement of vessels and air-
craft construction of shore and offshore establishments for the
Coast Guard.
Prior to passage, the House agreed to the Bow Amendment requiring
all ships authorized in H.R. 4153 to be constructed in the U. S.
Thursday, May 1, 1969
CRIME COMMITTEE
The House passed by record vote of 343 yeas to 18 nays, H. Res. 17,
creating a select committee to conduct an investigation and
study of all aspects of crime in the U. S.
Subsequently, the Speaker appointed as members of the select
committee Representatives Pepper, chairman, Griffiths, Nix,
Waldie, Watson, Wiggins and Denney.
Monday, May 5, 1969
The House passed by voice vote under suspension of the rules, the
following Bills:
1. H.R. 6269, to provide for the striking of medals in commemora-
tion of the three hundredth anniversary of the founding of
the State of South Carolina.
2. S. 1081, to provide for the striking of medals in honor of the
dedication of the Winston Churchill Memorial and Library.
3. H.R. 7215, to provide for the striking of medals in commemora-
tion of the fiftieth anniversary of the United States Diplomatic
Courier Service.
&
FORD
GERALD
4. H.R. 8188, to provide for the striking of medals in commemora-
tion of the one hundredth anniversary of the founding of the
City of Wichita, Kansas.
5. H.R. 8648, to provide for the striking of medals in commemora-
tion of the one hundredth anniversary of the founding of the
American Fisheries Society.
Tuesday and Balance of Week
H.R. 5554, to provide a Special Milk Program for Children
GERALD R FORD LIBRARY
FOR RELEASE AT 12 NOON, EST
April 23, 1969
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE CONGRESS OF THE UNITED STATES:
Today, organized crime has deeply penetrated broad segments of
American life. In our great cities, it is operating prosperous criminal
cartels. In our suburban areas and smaller cities, it is expanding its
corrosive influence. Its economic base is principally derived from its
virtual monopoly of illegal gambling, the numbers racket, and the
importation of narcotics. To a large degree, it underwrites the loan
sharking business in the United States and actively participates in
fraudulent bankruptcies. It encourages street crime by inducing nar-
cotic addicts to mug and rob. It encourages housebreaking and burglary
by providing efficient disposal methods for stolen goods. It quietly
continues to infiltrate and corrupt organized labor. It is increasing its
enormous holdings and influence in the world of legitimate business.
To achieve his end, the organized criminal relies on physical terror
and psychological intimidation, on economic retaliation and political
bribery, on citizen indifference and governmental acquiescence. He
corrupts our governing institutions and subverts our democratic
processes. For him, the moral and legal subversion of our society is
a life-long and lucrative profession.
Many decent Americans contribute regularly, voluntarily and
unwittingly to the coffers of organized crime -- the suburban house-
wife and the city slum dweller who place a twenty-five cent numbers
bet; the bricklayer and college student who buy a football card; the
businessman and the secretary who bet illegally on a horse.
Estimates of the "take" from illegal gambling alone in the United
States run anywhere from $20 billion, which is over 2% of the nation's gross
national product, to $50 billion, a figure larger than the entire federal
administrative budget for fiscal year 1951. This wealth is but one yardstick
of the economic and political power held by the leaders of organized crime
who operate with little limitation or restriction within our society.
Organized crime's victims range all across the social spectrum --
the middle-class businessman enticed into paying usurious loan rates;
the small merchant required to pay protection money; the white suburbanite
and the black city dweller destroying themselves with drugs; the elderly
pensioner and the young married couple forced to pay higher prices for
goods. The most tragic victims, of course, are the poor whose lack of
financial resources, education and acceptable living standards frequently
breed the kind of resentment and hopelessness that make illegal gambling
and drugs an attractive escape from the bleakness of ghetto life.
BACKGROUND
For two decades now, since the Attorney General's Conference on
Organized Crime in 1950, the Federal effort has slowly increased. Many
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of the nation's most notorious racketeers have been imprisoned or
deported and many local organized crime business operations have been
eliminated. But these successes have not substantially impeded the
growth and power of organized criminal syndicates. Not a single
one of the 24 Cosa Nostra families has been destroyed. They are more
firmly entrenched and more secure than ever before.
It is vitally important that Americans see this alien organization
for what it really is -- a totalitarian and closed society operating within
an open and democratic one. It has succeeded so far because an
apathetic public is not aware of the threat it poses to American life.
This public apathy has permitted most organized criminals to escape
prosecution by corrupting officials, by intimidating witnesses and by
terrorizing victims into silence.
As a matter of national "public policy, " I must warn our citizens that
the threat of organized crime cannot be ignored or tolerated any longer.
It will not be eliminated by loud voices and good intentions. It will be
eliminated by carefully conceived, well-funded and well-executed
action plans. Furthermore, our action plans against organized crime
must be established on a long-term basis in order to relentlessly
pursue the criminal syndicate. This goal will not be easily attained.
Over many decades, organized crime has extended its roots deep into
American society and they will not be easily extracted. Our success will
first depend on the support of our citizens who must be informed of the
dangers that organized crime poses. Success also will require the
help of Congress and of the State and local governments.
This Administration is urgently aware of the need for extraordinary
action and I have already taken several significant steps aimed at com-
bating organized crime. I have pledged an unstinting commitment, with
an unprecedented amount of money, manpower and other resources to
back up my promise to attack organized crime. For example -- I have
authorized the Attorney General to engage in wiretapping of organized
racketeers. I have authorized the Attorney General to establish 20 Federal
racketeering field offices all across the nation. I have authorized the
Attorney General to establish a unique Federal-State Racket Squad in
New York City. I have asked all Federal agencies to cooperate with the
Department of Justice in this effort and to give priority to the organized
crime drive. I have asked the Congress to increase the fiscal 1970
budget by $25 million, which will roughly double present expenditures
for the organized crime effort.
In addition, I have asked the Congress to approve a $300 million
appropriation in the 1970 budget for the Law Enforcement Assistance
Administration. Most of these funds will go in block grants to help State
and local law enforcement programs and a substantial portion of this
assistance money will be utilized to fight organized crime. I have had
discussions with the State Attorneys General and I have authorized the
Attorney General to cooperate fully with the States and local communities
in this national effort, and to extend help to them with every means at his
disposal. Finally, I have directed the Attorney General to mount our
Federal anti-organized crime offensive and to coordinate the Federal
effort with State and local efforts where possible.
ASSISTANCE TO STATES AND LOCAL GOVERNMENTS
Through the Law Enforcement Assistance Administration, and other
units of the Department of Justice, the Attorney General has already
taken some initial steps:
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1) A program is being established so that State and local law
enforcement people can exchange recent knowledge on the most effective
tactics to use against organized crime at the local level.
2). The Justice Department is furnishing technical assistance and
financial help in the training of investigators, prosecutors, intelligence
analysts, accountants, statisticians the professional people needed to
combat a spphisticated form of criminal activity.
3) The Justice Department is encouraging municipalities and States
to reexamine their own laws in the organized crime area. We are also
encouraging and assisting in the formation of State-wide organized crime
investigating and prosecuting units.
4) A computerized organized crime intelligence system is being
developed to house detailed information on the personalities and activities
of organized crime nationally. This system will also serve as a model
for State computer intelligence systems which will be partially funded by
the Federal Government.
5) We are fostering cooperation and coordination between States and
between communities to avoid a costly duplication of effort and expense.
6) We are providing Federal aid for both State and local public
information programs designed to alert the people to the nature and
scope of organized crime activity in their communities.
These actions are being taken now. But the current level of Federal
activity must be dramatically increased, if we expect progress. More
men and money, new administrative actions, and new legal authority
are needed.
EXPANDED BUDGET
There is no old law or new law that will be useful without the
necessary manpower for enforcement. I am therefore, as stated,
asking Congress to increase the Fiscal Year 1970 budget for dealing
with organized crime by $25 million. This will roughly double the
amount spent in the fight against organized crime during Fiscal Year
1969, and will bring the total Federal expenditures for the campaign
against organized crime to the unprecedented total of $61 million. I
urge Congress to approve our request for these vital funds.
REORGANIZATION OF THE CRIME EFFORT
I have directed the newly appointed Advisory Council on Executive
Organization to examine the effectiveness of the Executive Branch in
combating crime -- in particular organized crime.
Because many departments and agencies of the Executive Branch
are involved in the organized crime effort, I believe we can make
lasting improvement only if we view this matter in the full context of
executive operations.
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FEDERAL RACKETEERING FIELD OFFICES
The focal center of the Federal effort against organized crime is the
Department of Justice. It coordinates the efforts of all of the Federal
agencies. To combine in one cohesive unit a cadre of experienced
Federal investigators and prosecutors, to maintain a Federal presence
in organized crime problem areas throughout the nation on a continuing
basis, and to institutionalize and utilize the valuable experience that
has been gained by the "Strike Forces" under the direction of the Department
of Justice, the Attorney General has now established Federal Racketeering
Field Offices in Boston, Brooklyn, Buffalo, Chicago, Detroit, Miami,
Newark, and Philadelphia. These offices bring together, in cohesive
single units, experienced prosecutors from the Justice Department, Special
Agents of the FBI, investigators of the Bureau of Narcotics and Dangerous
Drugs, the finest staff personnel from the Bureau of Customs, the
Securities and Exchange Commission, the Internal Revenue Service, the
Post Office, the Secret Service and other Federal offices with expertise
in diverse areas of organized crime.
The Racketeering Field Offices will be able to throw a tight net of
Federal law around an organized crime concentration and through large
scale target investigations, we believe we can obtain the prosecutions
that will imprison the leaders, paralyze the administrators, frighten
the street workers and, eventually, paralyze the whole organized
crime syndicate in any one particular city. The Attorney General plans
to set up at least a dozen additional field offices within the next two years.
FEDERAL-STATE RACKET SQUAD
Investigations of the national crime syndicate, La Cosa Nostra,
show its membership at some 5, 000, divided into 24 "families" around
the nation. In most cities organized crime activity is dominated by a
single "family"; in New York City, however, the lucrative franchise is
divided among five such "families. "
To deal with this heavy concentration of criminal elements in the
nation's largest city, a new Federal-State Racket Squad is being established
in the Southern District of New York. It will include attorneys and investi-
gators from the Justice Department as well as from New York State and city.
This squad will be directed by the Department of Justice, in conjunction with
a supervisory council of officials from State and local participating agencies,
who will formulate policy, devise strategy and oversee tactical operations.
Building on the experience of this special Federal-State Racket Squad,
the Attorney General will be working with State and local authorities
in other major problem areas to determine whether this concept of
governmental partnership should be expanded to those areas through the
formation of additional squads.
NEW LEGISLATION
From his studies in recent weeks, the Attorney General has concluded
that new weapons and tools are needed to enable the Federal government to
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strike both at the Cosa Nostra hierarchy and the sources of revenue that
feed the coffers of organized crime. Accordingly the Attorney General
will ask Congress for new laws, and I urge Congress to act swiftly and
favorably on the Attorney General's request.
Witness Immunity
First, we need a new broad general witness immunity law to cover
all cases involving the violation of a Federal statute. I commend to the
Congress for its consideration the recommendations of the National
Commission on Reform of Federal Criminal Laws. Under the Commission's
proposal, a witness could not be prosecuted on the basis of anything he said
while testifying, but he would not be immune from prosecution based on
other evidence of his offense. Furthermore, once the government has
granted the witness such immunity, a refusal then to testify would bring
a prison sentence for contempt. With this new law, government should be
better able to gather evidence to strike at the leadership of organized
crime and not just the rank and file. The Attorney General has also advised
me that the Federal Government will make special provisions for protecting
witnesses who fear to testify due to intimidation.
Wagering Tax Amendments
We shall ask for swift enactment of S. 1624 or its companion bill
H.R. 322, sponsored by Senator Roman Hruska of Nebraska and
Congressman Richard Poff of Virginia respectively. These measures
would amend the wagering tax laws and enable the Internal Revenue
Service to play a more active and effective role in collecting the revenues
owed on wagers; the bills would also increase the Federal operator's tax
on gamblers from $50 annually to $1000.
Corruption
For most large scale illegal gambling enterprises to continue
operations over any extended period of time, the cooperation of
corrupt police or local officials is necessary. This bribery and
corruption of government closest to the people is a deprival of one of
a citizen's most basic rights. We shall seek legislation to make this
form of systematic corruption of community political leadership and law
enforcement a federal crime. This law would enable the Federal
Government to prosecute both the corruptor and the corrupted.
Illegal Gambling Businesses
We also shall request new legislation making it a Federal crime to
engage in an illicit gambling operation, from which five or more persons
derive income, which has been in operation more than thirty days, or
from which the daily "take" exceeds $2000. The purpose of this legisla-
tion is to bring under Federal jurisdiction all large-scale illegal
gambling operations which involve or affect inter-state commerce. The
effect of the law will be to give the Attorney General broad latitude to
assist local and state government in cracking down on illegal gambling,
the wellspring of organized crime's financial reservoir.
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This Administration has concluded that the major thrust of its
concerted anti-organized crime effort should be directed against gambling
activities. While gambling may seem to most Americans to be the least
reprehensible of all the activities of organized crime, it is gambling
which provides the bulk of the revenues that eventually go into usurious
loans, bribes of police and local officials, "campaign contributions" to
politicians, the wholesale narcotics traffic, the infiltration of legitimate
businesses, and to pay for the large stables of lawyers and accountants
and assorted professional men who are in the hire of organized crime.
Gambling income is the life line of organized crime. If we can cut
it or constrict it, we will be striking close to its heart.
Procedural Laws
With regard to improving the procedural aspects of the criminal
law as it relates to the prosecution of organized crime, the Attorney
General has been working with the Senate Subcommittee on Criminal Laws
and Procedures to develop and perfect S. 30, the "Organized Crime Control
Act of 1969. " As Attorney General Mitchell indicated in his testimony
on that bill, we support its objectives. It is designed to improve the
investigation and prosecution of organized crime cases, and to provide
appropriate sentencing for convicted offenders. I feel confident that it
will be a useful new tool.
Development of New Laws
Finally, I want to mention an area where we are examining the need
for new laws: the infiltration of organized crime into fields of legitimate
business. The syndicate-owned business, financed by illegal revenues
and operated outside the rules of fair competition of the American market-
place, cannot be tolerated in a system of free enterprise. Accordingly,
the Attorney General is examining the potential application of the theories
underlying our anti-trust laws as a potential new weapon.
The injunction with its powers of contempt and seizure, monetary
fines and treble damage actions, and the powers of a forfeiture proceeding,
suggest a new panoply of weapons to attack the property of organized
crime rather than the unimportant persons (the fronts) who technically
head up syndicate-controlled businesses. The arrest, conviction and
imprisonment of a Mafia lieutenant can curtail operations, but does not
put the syndicate out of business. As long as the property of organized
crime remains, new leaders will step forward to take the place of those
we jail. However, if we can levy fines on their real estate corporations,
if we can seek treble damages against their trucking firms and banks,
if we can seize the liquor in their warehouses, I think we can strike a
critical blow at the organized crime conspiracy.
Clearly, the success or failure of any ambitious program such as
I have outlined in this Message depends on many factors. I am confident
the Congress will supply the funds and the requested legislation, the States
and communities across the country will take advantage of the Federal
capability and desire to assist and participate with them, and the Federal
personnel responsible for programs and actions will vigorously carry
out their mission.
RICHARD NIXON
THE WHITE HOUSE,
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April 23, 1969
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CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
--FOR RELEASE AT 12 NOON--
April 23, 1969
Remarks by Rep. Gerald R. Ford, R-Mich., delivered on the Floor of the U.S. House
of Representatives, April 23, 1969.
Mr. Speaker: I rise today to urge every member of this House to join
with President Nixon in placing the leaders of La Cosa Nostra at the top of
America's Most Wanted Criminals list.
Mr. Speaker, I also urge every member of this House to help arouse the
law-abiding citizens of this land.
We have before us today, Mr. Speaker, a battle plan from the President
of the United States -- an outline of the strategy and a list of the weapons
needed to strike at the crime lords of this country, the greedy, vicious,
rapacious criminal kings whose subjects are the gamblers, drug pushers, panderers
and other criminal types who drain away America's moral strength and economic
life blood like millions of leeches.
In the message we have received from the White House today, President
Nixon has branded organized crime as Enemy Number One. He has told us what we
are doing now to fight the enemy. He has urged us to do more -- far more -- in
terms of men and money and new laws. We must accept that challenge.
The President has spelled out his plans to make life miserable for the
Mafia. And on the basis of his plans, if Congress concurs, I would advise anyone
with stock in the Mafia to sell it right now.
I agree completely with the President that the best-laid plans are
useless without the manpower to carry them out -- the manpower to carry out the
President's declared objective of convicting the heads of the Mafia, paralyzing
crime syndicate administrators, frightening the street workers and ultimately
squeezing to death the whole crime syndicate operation in our cities.
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I therefore join the President in urging this House to vote the
additional funds needed to double our present outlays for fighting organized
crime and to vote the full $300 million authorization to help the states and
local communities join with Federal authorities in a nationwide drive against
racketeers and street criminals.
I applaud the proposed increase in the number of Federal Racketeering
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Field Offices and the establishment of a new Special Federal-State Racket Squad
in the Southern District of New York.
I also urge congressional approval of President Nixon's requests for
new authority aimed at stepping up the rate of Mafia prosecutions and
convictions -- authority dealing with general witness immunity, bribery and
corruption of police or local officials, illicit gambling operations in interstate
commerce, and wagering tax law amendments.
These are anti-crime weapons Congress should make immediately available
to our anti-racketeering forces.
As the President has so well put it: The Federal Government must
prosecute both the corruptor and the corrupted.
Mr. Speaker, organized crime is like an octopus stretching its tentacles
into every corner of our land. From time to time we have lopped off an arm
or a leg but new members have grown in their place. It is long past time to
strike at the head of the operation, to cut deep into the brains of this
monstrosity which has the entire nation in its grip.
We must hunt down the chieftains of organized crime. We must bring every
one of them to book if we are to halt the crime wave which has swept over
America like a poisonous torrent.
President Nixon has asked for the weapons to do the job. Let us, the
chosen representatives of the people, give him the tools he needs.
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