H01 0010  1       The Office of Business Economics (~OBE) of the U&S&
H01 0020  1    Department of Commerce provides basic measures of the
H01 0020  9    national economy and current analysis of short-run
H01 0030  7    changes in the economic situation and business outlook.
H01 0040  4    It develops and analyzes the national income, balance
H01 0050  2    of international payments, and many other business
H01 0050  9    indicators. Such measures are essential to its job
H01 0060  8    of presenting business and Government with the facts
H01 0070  5    required to meet the objective of expanding business
H01 0080  2    and improving the operation of the economy.
H01 0080  9    _CONTACT_
H01 0090  1       For further information contact Director, Office
H01 0090  7    of Business Economics, U&S& Department of Commerce,
H01 0100  5    Washington 25, D&C&.
H01 0110  1    _PRINTED MATERIAL_
H01 0110  3       Economic information is made available to businessmen
H01 0120  1    and economists promptly through the monthly Survey
H01 0120  8    of Current Business and its weekly supplement. This
H01 0130  7    periodical, including weekly statistical supplements,
H01 0140  4    is available for $4 per year from Commerce Field Offices
H01 0150  3    or Superintendent of Documents, U&S& Government Printing
H01 0160  3    Office, Washington 25, D&C&.
H01 0160  7    #TECHNICAL ASSISTANCE TO SMALL BUSINESS COMMUNITY#
H01 0170  6    The Small Business Administration (~SBA) provides guidance
H01 0180  4    and advice on sources of technical information relating
H01 0190  3    to small business management and research and development
H01 0200  3    of products.
H01 0200  5    _SMALL BUSINESS MANAGEMENT_
H01 0200  8       Practical management problems and their suggested
H01 0210  6    solutions are dealt with in a series of ~SBA publications.
H01 0220  6    These publications, written especially for the managers
H01 0230  4    or owners of small businesses, indirectly aid in community
H01 0240  2    development programs. They are written by specialists
H01 0240  9    in numerous types of business enterprises, cover a
H01 0250  8    wide range of subjects, and are directed to the needs
H01 0260  7    and interests of the small firm.
H01 0270  1       ~SBA offers Administrative Management Courses, which
H01 0270  7    are designed to improve the management efficiency and
H01 0280  7    "know-how" of small business concerns within a community.
H01 0290  6    ~SBA cosponsors these courses with educational institutions
H01 0300  4    and community groups.
H01 0300  7       Through the ~SBA's Management Counseling Program,
H01 0310  6    practical, personalized advice on sound management
H01 0320  5    principles is available upon request to both prospective
H01 0330  4    and established businessmen in a community. One-day
H01 0340  1    conferences covering some specific phase of business
H01 0340  8    management, also part of the continuing activities
H01 0350  7    of the Small Business Administration, aid community
H01 0360  3    economic development programs. These short, "streamlined"
H01 0370  1    meetings usually are sponsored by local banks, Chambers
H01 0380  1    of Commerce, trade associations, or other civic organizations.
H01 0380  9    _PRODUCT RESEARCH AND DEVELOPMENT_
H01 0390  4       Production specialists in ~SBA regional offices
H01 0400  3    are available to help individual small business concerns
H01 0410  1    with technical production problems. Guidance and advice
H01 0410  8    are available on new product research and development;
H01 0420  7    new product potential; processing methods; product
H01 0430  4    and market developments; new industrial uses for raw,
H01 0440  4    semi-processed and waste, materials; and industrial
H01 0445  1    uses for agricultural products.
H01 0450  4       ~SBA serves also as a clearing house for information
H01 0460  4    on products and processes particularly adaptable for
H01 0470  2    exploitation by small firms. This may be helpful in
H01 0470 11    improving the competitive position of established firms
H01 0480  6    through diversification and expansion or through more
H01 0490  5    economical utilization of plant capacity.
H01 0500  1    _PRODUCTION ASSISTANCE_
H01 0500  3       Production specialists are available in ~SBA regional
H01 0510  3    offices to help individual small business concerns
H01 0520  1    with technical production problems. These problems
H01 0520  7    frequently arise where a firm is making items for the
H01 0530  9    Government not directly along the lines of its normal
H01 0540  5    civilian business or where the Government specifications
H01 0550  1    require operations that the firm did not understand
H01 0550  9    when it undertook the contract. Production assistance
H01 0560  6    often takes the form of locating tools or materials
H01 0570  5    which are urgently needed. Advice is given also on
H01 0580  3    problems of plant location and plant space.
H01 0590  1    _PROPERTY SALES ASSISTANCE_
H01 0590  2       The property sales assistance program is designed
H01 0590  9    to assist small business concerns that may wish to
H01 0600  9    buy property offered for sale by the Federal Government.
H01 0610  7    Under this program, property sales specialists in the
H01 0620  4    Small Business Administration regional offices help
H01 0630  2    small business concerns to locate Federal property
H01 0630  9    for sale and insure that small firms have the opportunity
H01 0640  8    to bid competitively for surplus personal and real
H01 0650  5    property and certain natural resources, including timber
H01 0660  2    from the national forests.
H01 0660  6       ~SBA works closely with the principal property disposal
H01 0670  6    installations of the Federal Government in reviewing
H01 0680  4    proposed sales programs and identifying those types
H01 0690  2    of property that small business concerns are most likely
H01 0690 11    to be interested in purchasing. Proposed property sales
H01 0700  7    of general interest to small business concerns are
H01 0710  6    publicized through ~SBA regional news releases, and
H01 0720  4    by "flyers" directed to the small business concerns.
H01 0730  1    Each ~SBA regional office also maintains a "want" list
H01 0740  1    of surplus property, principally machinery and equipment,
H01 0740  8    desired by small business concerns in its area. When
H01 0750  8    suitable equipment is located by the ~SBA representative,
H01 0760  5    the small business concern is contacted and advised
H01 0770  3    on when, where, and how to bid on such property.
H01 0780  1    _FACILITIES INVENTORY_
H01 0780  3       Section 8 (~b) (2) of the Small Business Act, as
H01 0790  3    amended, authorizes the ~SBA to make a complete inventory
H01 0800  1    of the productive facilities of small business concerns.
H01 0800  9    The Administration maintains a productive facilities
H01 0810  5    inventory of small business industrial concerns that
H01 0820  4    have voluntarily registered. It is kept in each Regional
H01 0830  4    office for the small firms within the region. Purpose
H01 0840  1    of this inventory is to include all eligible productive
H01 0840 10    facilities in ~SBA's facilities register so that the
H01 0850  8    small business concerns may have an opportunity to
H01 0860  6    avail themselves of the services authorized by the
H01 0870  3    Congress in establishing the Small Business Administration.
H01 0880  1    These services include procurement and technical assistance
H01 0880  8    and notice of surplus sales and invitations to bid
H01 0890  9    on Government contracts for products and services within
H01 0900  6    the registrants' field of operations. ~SBA can make
H01 0910  4    complete facilities inventories of all small business
H01 0920  1    concerns in labor surplus areas within budgetary and
H01 0920  9    staff limitations.
H01 0930  1    _CONTACT_
H01 0930  2       For further information, contact Small Business
H01 0940  1    Administration Regional Offices in Atlanta, Ga&; Boston,
H01 0950  1    Mass&; Chicago, Ill&; Cleveland, Ohio; Dallas, Tex&;
H01 0960  1    Denver, Colo&; Detroit, Mich&; Kansas City, Mo&; Los
H01 0970  2    Angeles, Calif&; Minneapolis, Minn&; New York, N&Y&;
H01 0980  2    Philadelphia, Pa&; Richmond, Va&; San Francisco, Calif&;
H01 0990  2    and Seattle, Wash&. Branch Offices are located in other
H01 1000  3    large cities.
H01 1000  5    _PRINTED MATERIAL_
H01 1000  7       Small Business Administration, What It Is, What
H01 1010  5    It Does, ~SBA Services for Community Economic Development,
H01 1020  5    and various other useful publications on currently
H01 1030  3    important management, technical production, and marketing
H01 1040  2    topics are available, on request, from Small Business
H01 1040 10    Administration, Washington 25, D&C&. New Product Introduction
H01 1060  1    for Small Business Owners, 30 cents; Developing and
H01 1060  9    Selling New Products, 45 cents; U&S& Government Purchasing,
H01 1080  1    Specifications, and Sales Directory, 60 cents, are
H01 1080  8    available from the Superintendent of Documents, U&S&
H01 1090  6    Government Printing Office, Washington 25, D&C&.
H01 1100  5    #LOANS#
H01 1110  1    _TO SMALL BUSINESS_
H01 1110  1       ~SBA makes loans to individual small business firms,
H01 1110  9    providing them with financing when it is not otherwise
H01 1120  9    available through private lending sources on reasonable
H01 1130  5    terms. Many such loans have been made to establish
H01 1140  3    small concerns or to aid in their growth, thereby contributing
H01 1150  1    substantially to community development programs.
H01 1160  1    _LOAN POLICIES._
H01 1160  1       ~SBA loans, which may be made to small manufacturers,
H01 1160 10    small business pools, wholesalers, retailers, service
H01 1170  6    establishments and other small businesses (when financing
H01 1180  6    is not otherwise available to them on reasonable terms),
H01 1190  4    are to finance business construction, conversion, or
H01 1200  2    expansion; the purchase of equipment, facilities, machinery,
H01 1210  1    supplies, or materials; or to supply working capital.
H01 1210  9    Evidence that other sources of financing are unavailable
H01 1220  7    must be provided.
H01 1230  1    _TYPES OF LOANS._
H01 1230  3       ~SBA business loans are of two types: "participation"
H01 1240  1    and "direct". Participation loans are those made jointly
H01 1250  1    by the ~SBA and banks or other private lending institutions.
H01 1250 11    Direct loans are those made by ~SBA alone. To qualify
H01 1260 10    for either type of loan, an applicant must be a small
H01 1270 10    business or approved small business "pool" and must
H01 1280  5    meet certain credit requirements. A small business
H01 1290  2    is defined as one which is independently owned and
H01 1290 11    operated and which is not dominant in its field. In
H01 1300 10    addition, the ~SBA uses such criteria as number of
H01 1310  7    employees and dollar volume of the business.
H01 1320  1    _CREDIT REQUIREMENTS._
H01 1320  3       The credit requirements stipulate that the applicant
H01 1330  3    must have the ability to operate the business successfully
H01 1340  1    and have enough capital in the business so that, with
H01 1340 11    loan assistance from the ~SBA, it will be able to operate
H01 1350 10    on a sound financial basis. A proposed loan must be
H01 1360  7    for sound purposes or sufficiently secured so as to
H01 1370  5    assure a reasonable chance of repayment. The record
H01 1380  1    of past earnings and prospects for the future must
H01 1380 10    indicate it has the ability to repay the loan out of
H01 1390  8    current and anticipated income.
H01 1400  1    _LOAN AMOUNT._
H01 1400  2       The amount which may be borrowed from the ~SBA depends
H01 1410  2    on how much is required to carry out the intended purpose
H01 1410 13    of the loan. The maximum loan which ~SBA may make to
H01 1420 10    any one borrower is $350,000. Business loans generally
H01 1430  6    are repayable in regular installments- usually monthly,
H01 1440  5    including interest at the rate of 5-1/2 percent per
H01 1450  2    annum on the unpaid balance- and have a maximum maturity
H01 1460  1    of 10 years; the term of loans for working capital
H01 1460 11    is 6 years.
H01 1470  1    _CONTACT_
H01 1470  1       For further information, contact ~SBA Regional Offices
H01 1480  1    in Atlanta, Ga&; Boston, Mass&; Chicago, Ill&; Cleveland,
H01 1490  1    Ohio; Dallas, Tex&; Denver, Colo&; Detroit, Mich&;
H01 1500  1    Kansas City, Mo&; Los Angeles, Calif&; Minneapolis,
H01 1510  1    Minn&; New York, N&Y&; Philadelphia, Pa&; Richmond,
H01 1520  2    Va&; San Francisco, Calif&; and Seattle, Wash&. Branch
H01 1530  2    Offices are located in other large cities.
H01 1540  1    _PRINTED MATERIAL_
H01 1540  1       Small Business Administration, What It Is, What
H01 1540  8    It Does; ~SBA Business Loans; and Small Business Pooling
H01 1560  2    are available, on request, from Small Business Administration,
H01 1570  1    Washington 25, D&C&, and its regional offices.
H01 1580  1    _TO COOPERATIVES_
H01 1580  1       The Farm Credit Administration, an independent agency
H01 1590  1    located within the Department of Agriculture, supervises
H01 1590  8    and coordinates a cooperative credit system for agriculture.
H01 1600  7    The system is composed of three credit services, Federal
H01 1610  6    Land Banks and National Farm Loan Associations, Federal
H01 1620  4    Intermediate (short-term) Credit Banks, and Banks for
H01 1630  4    Cooperatives. This system provides long- and short-term
H01 1640  1    credit to farmers and their cooperative marketing,
H01 1640  8    purchasing, and business service organizations.
H01 1650  5       As a source of investment capital, the system is
H01 1660  5    beneficial to local communities and encourages the
H01 1670  2    development of industries in rural areas. The credit
H01 1670 10    provdied by the first two services in the system outlined
H01 1680 10    above is primarily for general agricultural purposes.
H01 1690  4    The third credit service, Banks for Cooperatives, exists
H01 1700  3    under authority of the Farm Credit Act of 1933. The
H01 1710  2    Banks for Cooperatives were established to provide
H01 1710  9    a permanent source of credit on a sound basis for farmers'
H01 1720 10    cooperatives.
H01 1730  1    _TYPES OF LOANS._
H01 1730  3       Three distinct classes of loans are made available
H01 1740  1    to farmers' cooperatives by the Banks for Cooperatives:
H01 1740  9    Commodity loans, operating capital loans, and facility
H01 1750  7    loans.
H01 1760  1    _ELIGIBILITY._
H01 1760  1       To be eligible to borrow from a Bank for Cooperatives,
H01 1760 11    a cooperative must be an association in which farmers
H01 1770  8    act together in processing and marketing farm products,
H01 1780  5    purchasing farm supplies, or furnishing farm business
H01 1790  3    services, and must meet the requirements set forth
H01 1800  1    in the Farm Credit Act of 1933, as amended.
H01 1800 10    _INTEREST RATES._
H01 1810  1       Interest rates are determined by the board of directors
H01 1810 10    of the bank with the approval of the Farm Credit Administration.
H01 1820  8    _CONTACT_
H01 1830  1       For further information, contact the Bank for Cooperatives
H01 1830  8    serving the region, or the Farm Credit Administration,
H01 1840  7    Research and Information Division, Washington 25, D&C&.
H01 1850  5    _PRINTED MATERIAL_
H01 1850  7       Available, on request, from U&S& Department of Agriculture,
H01 1860  8    Washington 25, D&C&, are: Cooperative Farm Credit Can
H01 1870  8    Assist in Rural Development (Circular No& 44), and
H01 1880  8    The Cooperative Farm Credit System (Circular No& 36-~A).
H01 1890  8    #MINERALS EXPLORATION#
H01 1900  2    To encourage exploration for domestic sources of minerals,
H01 1910  1    the Office of Minerals Exploration (~OME) of the U&S&
H01 1920  1    Department of the Interior offers financial assistance
H01 1920  8    to firms and individuals who desire to explore their
H01 1930  8    properties or claims for 1 or more of the 32 mineral
H01 1940  8    commodities listed in the ~OME regulations.
H01 1950  1    _REQUIREMENTS_
H01 1950  2       This help is offered to applicants who ordinarily
H01 1960  1    would not undertake the exploration under present conditions
H01 1960  9    or circumstances at their sole expense and who are
H01 1970  9    unable to obtain funds from commercial sources on reasonable
H01 1980  6    terms. Each applicant is required to own or have sufficient
H01 1990  6    interest in the property to be explored. The Government
H01 2000  3    will contract with an eligible applicant to pay up
H01 2010  1    to one-half of the cost of approved exploration work
H01 2010 11    as it progresses. The applicant pays the rest of the
H01 2020  8    cost, but his own time spent on the work and charges
H01 2030  4    for the use of equipment which he owns may be applied
H01 2040  1    toward his share of the cost.
H01 2040  7    _REPAYMENT_
H01 2040  8       Funds contributed by the Government are repaid by
H01 2050  6    a royalty on production from the property. If nothing
H01 2060  3    is produced, there is no obligation to repay. A 5-percent
H01 2070  1    royalty is paid on any production during the period
H01 2070 10    the contract is in effect; if the Government certifies
H01 2080  8    that production may be possible from the property,
H01 2090  5    the royalty obligation continues for the 10-year period
H01 2100  4    usually specified in the contract or until the Government's
H01 2110  1    contribution is repaid with interest. The royalty applies
H01 2110  9    to both principal and interest, but it never exceeds
H01 2120  9    5 percent.
H01 2130  1    _CONTACT_
H01 2130  1       Information, application forms, and assistance in
H01 2130  7    filing may be obtained from the Office of Minerals
H01 2140  7    Exploration, U&S& Department of the Interior, Washington
H01 2150  5    25, D&C&, or from the appropriate regional office listed
H01 2160  4    below:
H02 0010  1       In most of the less developed countries, however,
H02 0010  9    such programing is at best inadequate and at worst
H02 0020  8    nonexistent. Only a very few of the more advanced ones,
H02 0030  5    such as India and Pakistan, have developed systematic
H02 0040  2    techniques of programing.
H02 0040  5       Others have so-called development plans, but some
H02 0050  4    of these are little more than lists of projects collected
H02 0060  2    from various ministries while others are statements
H02 0060  9    of goals without analysis of the actions required to
H02 0070  8    attain them. Only rarely is attention given to accurate
H02 0080  6    progress reports and evaluation.
H02 0090  1    _WE CAN HELP IN THE PLANNING PROCESS_
H02 0090  7       Neither growth nor a development program can be
H02 0100  4    imposed on a country; it must express the nation's
H02 0110  1    own will and goal. Nevertheless, we can administer
H02 0110  9    an aid program in such a manner as to promote the development
H02 0120 10    of responsible programing.
H02 0130  1       First, we can encourage responsibility by establishing
H02 0140  1    as conditions for assistance on a substantial and sustained
H02 0140 10    scale the definition of objectives and the assessment
H02 0150  7    of costs.
H02 0150  9       Second, we can make assistance for particular projects
H02 0160  8    conditional on the consistency of such projects with
H02 0170  7    the program.
H02 0170  9       Third, we can offer technical help in the formulation
H02 0180  9    of programs for development which are adapted to the
H02 0190  6    country's objectives and resources. This includes assistance
H02 0200  3    in- **h assembling the basic economic, financial, technological,
H02 0210  2    and educational information on which programing depends;
H02 0220  1    **h surveying the needs and requirements over time
H02 0220  9    of broad sectors of the economy, such as transport,
H02 0230  8    agriculture, communication, industry, and power; **h
H02 0240  5    designing the financial mechanisms of the economy in
H02 0250  3    ways that will promote growth without inflation; and
H02 0250 11    **h administrative practices which will make possible
H02 0260  7    the more effective review and implementation of programs
H02 0270  6    once established.
H02 0280  1    _WE MUST USE COMMON SENSE IN APPLYING CONDITIONS_
H02 0280  6       The application of conditions in the allocation
H02 0290  1    of aid funds cannot, of course, be mechanical. It must
H02 0300  1    be recognized that countries at different stages of
H02 0300  9    development have very different capabilities of meeting
H02 0310  6    such conditions. To insist on a level of performance
H02 0320  6    in programing and budgeting completely beyond the capabilities
H02 0330  3    of the recipient country would result in the frustration
H02 0340  1    of the basic objective of our development assistance
H02 0340  9    to encourage more rapid growth.
H02 0350  4       In the more primitive areas, where the capacity
H02 0360  1    to absorb and utilize external assistance is limited,
H02 0360  9    some activities may be of such obvious priority that
H02 0370  8    we may decide to support them before a well worked
H02 0380  5    out program is available. Thus, we might provide limited
H02 0390  2    assistance in such fields as education, essential transport,
H02 0400  1    communications, and agricultural improvement despite
H02 0400  6    the absence of acceptable country programs. In such
H02 0410  6    a case, however, we would encourage the recipient country
H02 0420  4    to get on with its programing task, supply it with
H02 0430  3    substantial technical assistance in performing that
H02 0430  9    task, and make it plain that an expansion or even a
H02 0440 10    continuation of our assistance to the country's development
H02 0450  5    was conditional upon programing progress being made.
H02 0460  3       At the other end of the spectrum, where the more
H02 0470  2    advanced countries can be relied upon to make well
H02 0470 11    thought through decisions as to project priorities
H02 0480  6    within a consistent program, we should be prepared
H02 0490  3    to depart substantially from detailed project approval
H02 0500  1    as the basis for granting assistance and to move toward
H02 0500 11    long-term support, in cooperation with other developed
H02 0510  6    countries, of the essential foreign exchange requirements
H02 0520  4    of the country's development program.
H02 0530  1    #D. ENCOURAGING SELF-HELP#
H02 0540  1    _1. THE REASONS FOR STRESSING SELF-HELP_
H02 0540  1       A systematic approach to development budgeting and
H02 0540  8    programing is one important kind of self-help. There
H02 0550  9    are many others. It is vitally important that the new
H02 0560  5    U&S& aid program should encourage all of them, since
H02 0570  4    the main thrust for development must come from the
H02 0570 13    less developed countries themselves. External aid can
H02 0580  7    only be marginal, although the margin, as in the case
H02 0590  8    of the Marshall plan, can be decisive. External aid
H02 0600  3    can be effective only if it is a complement to self-help.
H02 0610  1    U&S& aid, therefore, should increasingly be designed
H02 0610  8    to provide incentives for countries to take the steps
H02 0620  9    that only they themselves can take.
H02 0630  3    _AID ADVICE IS NOT INTERFERENCE_
H02 0630  8       In establishing conditions of self-help, it is important
H02 0640  8    that we not expect countries to remake themselves in
H02 0650  5    our image. Open societies can take many forms, and
H02 0660  2    within very broad limits recipients must be free to
H02 0660 11    set their own goals and to devise their own institutions
H02 0670  9    to achieve those goals. On the other hand, it is no
H02 0680  8    interference with sovereignty to point out defects
H02 0690  3    where they exist, such as that a plan calls for factories
H02 0700  1    without power to run them, or for institutions without
H02 0700 10    trained personnel to staff them. Once we have made
H02 0710  8    clear that we are genuinely concerned with a country's
H02 0720  4    development potential, we can be blunt in suggesting
H02 0730  1    the technical conditions that must be met for development
H02 0730 10    to occur.
H02 0740  1    _2. THE RANGE OF SELF-HELP_
H02 0740  7       The major areas of self-help are the following:
H02 0760  1    _(A) THE EFFECTIVE MOBILIZING OF RESOURCES._
H02 0760  1       This includes not only development programing, but
H02 0760  8    also establishing tax policies designed to raise equitably
H02 0770  7    resources for investment; fiscal and monetary policies
H02 0780  5    designed to prevent serious inflation; and regulatory
H02 0790  3    policies aimed to attract the financial and managerial
H02 0800  1    resources of foreign investment and to prevent excessive
H02 0800  9    luxury consumption by a few.
H02 0820  1    _(B) THE REDUCTION OF DEPENDENCE ON EXTERNAL SOURCES._
H02 0820  2       This includes foreseeing balance-of-payments crises,
H02 0830  1    with adequate attention to reducing dependence on imports
H02 0830  9    and adopting realistic exchange rates to encourage
H02 0840  6    infant industries and spur exports. It also includes
H02 0850  4    providing for the training of nationals to operate
H02 0860  1    projects after they are completed.
H02 0870  1    _(C) TAPPING THE ENERGIES OF THE ENTIRE POPULATION._
H02 0870  4       For both economic and political reasons all segments
H02 0880  3    of the population must be able to share in the growth
H02 0890  1    of a country. Otherwise, development will not lead
H02 0890  9    to longrun stability.
H02 0900  1    _(D) HONESTY IN GOVERNMENT._
H02 0900  5       In many societies, what we regard as corruption,
H02 0910  4    favoritism, and personal influence are so accepted
H02 0920  1    as consistent with the mores of officialdom and so
H02 0920 10    integral a part of routine administrative practice
H02 0940  4    that any attempt to force their elimination will be
H02 0950  3    regarded by the local leadership as not only unwarranted
H02 0960  1    but unfriendly. Yet an economy cannot get the most
H02 0960 10    out of its resources if dishonesty, corruption, and
H02 0970  5    favoritism are widespread. Moreover, tolerance by us
H02 0980  4    of such practices results in serious waste and diversion
H02 0990  1    of aid resources and in the long run generates anti-American
H02 1000  1    sentiment of a kind peculiarly damaging to our political
H02 1000 10    interest. Some of the most dramatic successes of communism
H02 1010  8    in winning local support can be traced to the identification-
H02 1020  7    correct or not- of Communist regimes with personal
H02 1030  4    honesty and pro-Western regimes with corruption. A
H02 1040  2    requirement of reasonably honest administration may
H02 1040  8    be politically uncomfortable in the short run, but
H02 1050  7    it is politically essential in the long run.
H02 1060  5    _3. U&S& POSITION ON SELF-HELP_
H02 1060 11       The United States can use its aid as an incentive
H02 1070  9    to self-help by responding with aid on a sustained
H02 1080  5    basis, tailored to priority needs, to those countries
H02 1090  1    making serious efforts in self-help.
H02 1090  7       In many instances it can withhold or limit its aid
H02 1100  7    to countries not yet willing to make such efforts.
H02 1110  2       There are other countries where, with skillful diplomacy,
H02 1120  1    we may be able by our aid to give encouragement to
H02 1120 12    those groups in government which would like to press
H02 1130  8    forward with economic and social reform measures to
H02 1140  4    promote growth. Governments are rarely monolithic.
H02 1150  1       But there will be still other countries where, despite
H02 1160  1    the inadequacy of the level of self-help, we shall
H02 1160 11    deem it wise, for political or military reasons, to
H02 1170  5    give substantial economic assistance. Even in these
H02 1180  4    cases we should promote self-help by making it clear
H02 1180 14    that our supporting assistance is subject to reduction
H02 1190  8    and ultimately to termination.
H02 1200  2    #E. ENCOURAGING A LONG-TERM APPROACH#
H02 1210  1    _1. DEVELOPMENT REQUIRES A LONG-TERM APPROACH_
H02 1210  6       The most fundamental concept of the new approach
H02 1220  4    to economic aid is the focusing of our attention, our
H02 1230  1    resources, and our energies on the effort to promote
H02 1230 10    the economic and social development of the less developed
H02 1240  7    countries. This is not a short-run goal. To have any
H02 1260  5    success in this effort, we must ourselves view it as
H02 1270  3    an enterprise stretching over a considerable number
H02 1270 10    of years, and we must encourage the recipients of our
H02 1280  9    aid to view it in the same fashion.
H02 1300  1    _MOST OF OUR AID WILL GO TO THOSE NEARING SELF-SUFFICIENCY_
H02 1300  1       How long it will take to show substantial success
H02 1300 10    in this effort will vary greatly from country to country.
H02 1310  8    In several significant cases, such as India, a decade
H02 1320  6    of concentrated effort can launch these countries into
H02 1330  3    a stage in which they can carry forward their own economic
H02 1340  1    and social progress with little or no government-to-government
H02 1340 11    assistance. These cases in which light is already visible
H02 1350  9    at the other end of the tunnel are ones which over
H02 1360  9    the next few years will absorb the bulk of our capital
H02 1370  6    assistance.
H02 1380  1    _GRADUALLY OTHERS WILL MOVE UP TO THE SAME LEVEL_
H02 1380  4       The number of countries thus favorably situated
H02 1380 11    is small, but their peoples constitute over half of
H02 1390  9    the population of the underdeveloped world. Meantime,
H02 1400  4    over the decade of the sixties, we can hope that many
H02 1410  5    other countries will ready themselves for the big push
H02 1420  2    into self-sustaining growth. In still others which
H02 1420 10    are barely on the threshold of the transition into
H02 1430  7    modernity, the decade can bring significant progress
H02 1440  3    in launching the slow process of developing their human
H02 1450  2    resources and their basic services to the point where
H02 1450 11    an expanded range of developmental activities is possible.
H02 1470  1    _AID IS A LONG-TERM PROCESS_
H02 1470  2       The whole program must be conceived of as an effort,
H02 1470 12    stretching over a considerable number of years, to
H02 1480  8    alter the basic social and economic conditions in the
H02 1490  6    less developed world. It must be recognized as a slow-acting
H02 1500  5    tool designed to prevent political and military crises
H02 1510  2    such as those recently confronted in Laos and Cuba.
H02 1510 11    It is not a tool for dealing with these crises after
H02 1520 10    they have erupted.
H02 1530  1    _2. THE SPECIFIC REASONS FOR A LONG-TERM APPROACH_
H02 1540  1       _(A) THE NEED TO BUDGET A PERIOD OF YEARS._
H02 1540  6       Many of the individual projects for which development
H02 1550  3    assistance is required call for expenditures over lengthy
H02 1560  1    periods. Dams, river development schemes, transportation
H02 1560  7    networks, educational systems require years to construct.
H02 1570  7    Moreover, on complex projects, design work must be
H02 1580  6    completed and orders for machinery and equipment placed
H02 1590  4    months or even years before construction can commence.
H02 1600  1    Thus, as a development program is being launched, commitments
H02 1600 10    and obligations must be entered into in a given year
H02 1610 10    which may exceed by twofold or threefold the expenditures
H02 1620  6    to be made in that year. The capital expansion programs
H02 1630  4    of business firms involve multi-year budgeting and
H02 1640  2    the same is true of country development programs.
H02 1650  1    _(B) THE NEED TO PLAN INVESTMENT PROGRAMS._
H02 1650  5       More importantly, several of the more advanced of
H02 1660  5    the less developed countries have found through experience
H02 1670  2    that they must plan their own complex investment programs
H02 1670 11    for at least 5 years forward and tentatively for considerably
H02 1680 10    more than that if they are to be sure that the various
H02 1690 11    interdependent activities involved are all to take
H02 1700  6    place in the proper sequence. Without such forward
H02 1710  2    planning, investment funds are wasted because manufacturing
H02 1710  9    facilities are completed before there is power to operate
H02 1720  9    them or before there is transport to service them;
H02 1730  7    or a skilled labor force is trained before there are
H02 1740  4    plants available in which they can be employed.
H02 1750  1    _(C) THE NEED TO ALLOCATE COUNTRY RESOURCES._
H02 1750  8       Most important of all, the less developed countries
H02 1760  7    must be persuaded to take the necessary steps to allocate
H02 1770  4    and commit their own resources. They must be induced
H02 1780  3    to establish the necessary tax, fiscal, monetary, and
H02 1780 11    regulatory policies. They must be persuaded to adopt
H02 1790  8    the other necessary self-help measures which are described
H02 1800  5    in the preceding section. The taking of these steps
H02 1810  4    involves tough internal policy decisions. Moreover,
H02 1820  1    once these steps are taken, they may require years
H02 1820 10    to make themselves felt. They must, therefore, be related
H02 1830  7    to long-range development plans.
H02 1840  2    _3. PROVIDING AN INCENTIVE_
H02 1840  6       If the less developed countries are to be persuaded
H02 1850  5    to adopt a long-term approach, the United States, as
H02 1860  2    the principal supplier of external aid, must be prepared
H02 1860 11    to give long-term commitments. In this, as in so many
H02 1870 10    aspects of our development assistance activities, the
H02 1880  4    incentive effects of the posture we take are the most
H02 1890  4    important ones. The extent to which we can persuade
H02 1900  1    the less developed countries to appraise their own
H02 1900  9    resources, to set targets toward which they should
H02 1910  5    be working, to establish in the light of this forward
H02 1930  1    perspective the most urgent priorities for their immediate
H02 1940  1    attention, and to do the other things which they must
H02 1940 11    do to help themselves, all on a realistic long-term
H02 1950  7    basis, will depend importantly on the incentives we
H02 1960  5    place before them. If they feel that we are taking
H02 1970  1    a long-term view of their problems and are prepared
H02 1970 11    to enter into reasonably long-term association with
H02 1980  6    them in their development activities, they will be
H02 1990  4    much more likely to undertake the difficult tasks required.
H02 2000  1    Perhaps the most important incentive for them will
H02 2000  9    be clear evidence that where other countries have done
H02 2010  8    this kind of home work we have responded with long-term
H02 2020  6    commitments.
H03 0010  1       You have heard him tell these young people that
H03 0010 10    during his almost 50 years of service in the Congress
H03 0020  8    he has seen the Kaisers and the Hitlers and the Mussolinis,
H03 0030  6    the Tojos and Stalins and Khrushchevs, come and go
H03 0040  4    and that we are passing on to them the freest Nation
H03 0050  1    that mankind has ever known. Then I have seen the pride
H03 0050 12    of country well in the eyes of these young people.
H03 0060  9       So, I say, Mr& Speaker, God bless you and keep you
H03 0070  7    for many years not only for this body but for the United
H03 0080  5    States of America and the free world. You remember
H03 0090  1    the words of President Kennedy a week or so ago, when
H03 0090 12    someone asked him when he was in Canada, and Dean Rusk
H03 0100 11    was in Europe, and Vice President JOHNSON was in Asia,
H03 0110  7    "Who is running the store"? and he said "The same fellow
H03 0120  8    who has been running it, SAM RAYBURN".
H03 0130  2    #GENERAL LEAVE TO EXTEND#
H03 0140  1    _MR& MCCORMACK._
H03 0140  1       Mr& Speaker, I ask unanimous consent that all Members
H03 0140 10    who desire to do so may extend their remarks at this
H03 0150 10    point in the RECORD; and also that they may have 5
H03 0160  8    legislative days in which to extend their remarks.
H03 0170  3    _THE SPEAKER PRO TEMPORE._
H03 0170  7       Is there objection to the request of the gentleman
H03 0180  7    from Massachusetts?
H03 0180  9       There was no objection.
H03 0190  3    #REMARKS OF HON& JOSEPH P& ADDABBO OF NEW YORK#
H03 0200  1    _MR& ADDABBO._
H03 0200  3       It is notably significant that so many Members from
H03 0210  2    both sides of the aisle express their respect and admiration
H03 0210 12    for our beloved Speaker, the Honorable SAM RAYBURN.
H03 0220  8    I purposely refrained from adding the usual distinction
H03 0230  7    of saying that he was from the State of Texas. I did
H03 0240  7    so because I agree with so many here today, that he
H03 0250  4    is the beloved Speaker of all the people of the United
H03 0260  1    States. For the dignity, the influence, and the power
H03 0260 10    of the legislative branch of our Government- it is
H03 0270  7    a privilege for us to do honor to this great man who
H03 0280  6    represents not alone his own district but all the people
H03 0290  3    of our country. To honor him is to honor ourselves.
H03 0300  1       In this my first year as a Member of this body I
H03 0300 13    have experienced many memorable moments. Many of these
H03 0310  7    experiences are so important that they will be cherished
H03 0320  6    forever by me. And, like many of you here present,
H03 0330  2    I hold as the highlight of all, the occasion of my
H03 0330 13    first meeting with the honorable Speaker of the House.
H03 0340  8    At that time, he afforded me the courtesy of his busy
H03 0350  7    workday for such length as I may need, to speak about
H03 0360  4    my background, my hopes, my views on various national
H03 0370  1    and local topics, and any problems that I may have
H03 0370 11    been vexed with at the time. He was fatherly in his
H03 0380  9    handling of all subjects with me and tremendously wise
H03 0390  4    in his counsel. In conclusion, he wished me well- and
H03 0400  4    as kindly and humbly as this humane gentleman could
H03 0400 13    express himself, he asked to be remembered to my wife
H03 0410 10    and children.
H03 0410 12       In my short period here I believe that at no time
H03 0420 11    has he been otherwise than the most popular man on
H03 0430  7    both sides of the aisle. He is most effective in the
H03 0440  3    ordinary business of the House, and in the legislative
H03 0450  1    accomplishments of this session, he easily rose to
H03 0450  9    great occasion- even at the height of unpleasantness
H03 0460  6    and exciting legislative struggle- and as the Nation
H03 0470  7    witnessed these contests, he rose, even as admitted
H03 0480  1    by those who differed with him, to the proportions
H03 0480 10    of a hero and a noble partisan.
H03 0490  3       I am highly privileged today to commemorate the
H03 0500  1    brilliant career of this parliamentary giant. He will
H03 0500  9    ever be my example as a true statesman; one who is
H03 0510  8    thoroughly human, who affects no dignity, and who is
H03 0520  6    endowed with real ability, genuine worth, and sterling
H03 0530  2    honesty- all dedicated to secure the best interests
H03 0530 10    of the country he has loved and served so long. May
H03 0540 10    the Divine Speaker in Heaven bless this country with
H03 0550  6    SAM RAYBURN'S continued service here for years to come.
H03 0560  6    #REMARKS OF HON& WAYNE L& HAYS OF OHIO#
H03 0570  1    _MR& HAYS._
H03 0570  3       It is a matter of deep personal satisfaction for
H03 0580  1    me to add my voice to the great and distinguished chorus
H03 0580 12    of my colleagues in this paean of praise, respect,
H03 0590  7    and affection for Speaker SAM RAYBURN. In this hour
H03 0600  5    of crisis, the wisdom, the dedication, the stabilizing
H03 0610  2    force that he represents in current American government
H03 0620  1    is an almost indispensable source of strength. He has
H03 0620 10    become in this half century the grand old man of American
H03 0630  9    history. It seems to me that the prayers of the whole
H03 0640  7    free world must rise like some vast petition to Providence
H03 0650  3    that SAM RAYBURN'S vigor and his life remain undiminished
H03 0660  2    through the coming decades.
H03 0660  6       Here briefly in this humble tribute I have sought
H03 0670  6    for some simple and succinct summation that would define
H03 0680  4    the immense service of this patriot to his country.
H03 0690  1    But the task is beyond me because I hold it impossible
H03 0690 12    to compress in a sentence or two the complicated and
H03 0700  9    prodigious contributions SAM RAYBURN has made as an
H03 0710  6    individual, as a legislator, as a statesman and as
H03 0720  3    a leader and conciliator, to the majestic progress
H03 0720 11    of this Nation. It happens that I am a legislator from
H03 0730 10    Ohio and that I feel deeply about the needs, the aspirations,
H03 0740  7    the interests of my district and my State. What SAM
H03 0750  6    RAYBURN'S life proves to us all is the magnificent
H03 0760  3    lesson in political science that one can devotedly
H03 0760 11    and with absolute dedication represent the seemingly
H03 0770  7    provincial interests of one's own community, one's
H03 0780  6    own district, one's own State, and by that help himself
H03 0790  6    represent even better the sweep and scope of the problems
H03 0800  3    of this the greatest nation of all time.
H03 0800 11       For SAM RAYBURN never forgot Bonham, his home community,
H03 0810  8    and he never forgot Texas. In the same way I like to
H03 0820 10    think we owe our loyalty as legislators to our community,
H03 0830  5    our district, our State. And, if we follow the RAYBURN
H03 0840  4    pattern, as consciously or by an instinctual political
H03 0850  2    sense I like to think I have followed it, then the
H03 0850 13    very nature of our loyalty to our own immediate areas
H03 0860  9    must necessarily be reflected in the devotion of our
H03 0870  6    services to our country. For what SAM RAYBURN'S life
H03 0880  3    in this House teaches us is that loyalty and character
H03 0890  1    are not divisive and there is no such thing as being
H03 0890 12    for your country and neglecting your district. There
H03 0900  7    is no such thing as being diligent about national affairs
H03 0910  5    but indifferent about home needs. The two are as one.
H03 0920  5    This may not be the greatest but it certainly comes
H03 0930  1    close to being the greatest lesson SAM RAYBURN'S career,
H03 0930 10    up to this hour, teaches all of us who would aspire
H03 0940 10    to distinction in political life under our processes
H03 0950  5    of government.
H03 0950  7       More than that, SAM RAYBURN is the very living symbol
H03 0960  8    of an iron-clad integrity so powerful in his nature
H03 0970  6    and so constantly demonstrated that he can count some
H03 0980  2    of his best friends in the opposition. Through the
H03 0980 11    most rancorous battles of political controversy and
H03 0990  6    the most bitterly fought national and presidential
H03 1000  3    campaigns his character shines as an example of dignity
H03 1010  3    and honesty, forthrightness and nobility. SAM RAYBURN
H03 1020  1    has never had to look back at any of his most devastating
H03 1020 13    fights and ever feel ashamed of his conduct as a combatant
H03 1030 10    under fire or his political manners in the heat of
H03 1040  6    conflicting ambitions. This means much to the American
H03 1050  3    tradition. It is an answer in its way, individual and
H03 1060  1    highly dramatic, to the charge that the democratic
H03 1060  9    process is necessarily vicious in its campaign characteristics.
H03 1070  6    And the name RAYBURN is one of the most dominant in
H03 1080  8    the history of American politics for the last half
H03 1090  4    century.
H03 1090  5       It is, I insist, hard to define the RAYBURN contribution
H03 1100  3    to our political civilization because it is so massive
H03 1110  3    and so widespread and so complicated, and because it
H03 1110 12    goes so deep. But this we know: Here is a great life
H03 1120 12    that in every area of American politics gives the American
H03 1130  7    people occasion for pride and that has invested the
H03 1140  6    democratic process with the most decent qualities of
H03 1150  2    honor, decency, and self-respect. I pray to God that
H03 1150 12    he may be spared to us for many years to come for this
H03 1160 12    is an influence the United States and the whole world
H03 1170  6    can ill afford to lose.
H03 1170 11    #REMARKS OF HON& MELVIN PRICE OF ILLINOIS#
H03 1180  7    _MR& PRICE._
H03 1180  9       All but two of my nine terms in the House of Representatives
H03 1190 10    has been served under the Speakership of SAM RAYBURN.
H03 1200  6    Of this I am proud. I have a distinct admiration for
H03 1210  5    this man we honor today because of the humility with
H03 1220  2    which he carries his greatness.
H03 1220  7       And SAM RAYBURN is a great man- one who will go
H03 1230  9    down in American history as a truly great leader of
H03 1240  4    the Nation. He will be considered not only great among
H03 1250  2    his contemporaries, but as great among all the Americans
H03 1250 11    who have played a part in the country's history since
H03 1260 10    the beginning.
H03 1270  1       I pay my personal tribute to SAM RAYBURN, stalwart
H03 1270 10    Texan and great American, not only because today he
H03 1280  8    establishes a record of having served as Speaker of
H03 1290  6    the House of Representatives more than twice as long
H03 1300  4    as Henry Clay, but because of the contributions he
H03 1300 13    has made to the welfare of the people of the Nation
H03 1310 11    during his almost half century of service as a Member
H03 1320  7    of Congress.
H03 1320  9       Speaker RAYBURN has not limited his leadership as
H03 1330  7    a statesman to his direction of the House in the Speaker's
H03 1340  7    chair. He had an outstanding record as a legislator
H03 1350  4    since the start of his career in the House in 1913,
H03 1360  1    the 63d Congress. No one has sponsored more progressive
H03 1360 10    and important legislation than has SAM RAYBURN. He
H03 1370  7    is the recognized "father" of the Rural Electrification
H03 1380  5    Administration and the Security and Exchange Commission.
H03 1390  4    But to run the gauntlet of the programs SAM RAYBURN
H03 1400  3    brought into being through his legislative efforts
H03 1410  1    would fill the pages of today's Record.
H03 1410  8       No greater pleasure has come to me in my own service
H03 1420  9    in this House than to be present today to participate
H03 1430  4    in this tribute to this great Speaker, this great legislator,
H03 1440  2    this great Texan, this great American.
H03 1440  8       My sincere wish is that he continues to add to this
H03 1450 10    record he sets here today.
H03 1460  1    #REMARKS OF HON& JOHN S& MONAGAN OF CONNECTICUT#
H03 1470  1    _MR& MONAGAN._
H03 1470  1       SAM RAYBURN is one of the greatest American public
H03 1470 10    figures in the history of our country and I consider
H03 1480 10    that I have been signally honored in the privilege
H03 1490  6    of knowing SAM RAYBURN and sharing with him the rights
H03 1500  5    and obligations of a Member of the House of Representatives
H03 1510  2    in the Congress of the United States.
H03 1510  9       Others may speak of Speaker RAYBURN'S uniquely long
H03 1520  8    and devoted service; of his championship of many of
H03 1530  8    the progressive social measures which adorn our statute
H03 1540  5    books today, and of his cooperation in times of adversity
H03 1550  3    with Presidents of both of our major parties in helping
H03 1560  1    to pilot the Ship of State through the shoals of today's
H03 1560 12    stormy international seas.
H03 1570  3       I prefer to speak, however, of SAM RAYBURN, the
H03 1580  2    person, rather than SAM RAYBURN, the American institution.
H03 1590  1       Although SAM RAYBURN affects a gruff exterior in
H03 1600  1    many instances, nevertheless he is fundamentally a
H03 1600  8    man of warm heart and gentle disposition. No one could
H03 1610  7    be more devoted than he to the American Congress as
H03 1620  4    an institution and more aware of its historical significance
H03 1630  2    in the political history of the world, and I shall
H03 1630 12    never forget his moving talks, delivered in simple
H03 1640  8    yet eloquent words, upon the meaning of our jobs as
H03 1650  7    Representatives in the operation of representative
H03 1660  1    government and their importance in the context of today's
H03 1670  1    assault upon popular government.
H03 1670  5       Above all, he is a person to whom a fledgling Representative
H03 1680  5    can go to discuss the personal and professional problems
H03 1690  2    which inevitably confront a new Congressman. In this
H03 1700  2    role of father confessor, he has always been most characteristic
H03 1710  1    and most helpful.
H03 1710  4       On September 16, SAM RAYBURN will have served as
H03 1720  3    Speaker twice as long as any predecessor and I am proud
H03 1730  1    to join with others in marking this date, and in expressing
H03 1730 12    my esteem for that notable American, SAM RAYBURN.
H04 0010  1    _ORIGIN OF STATE AUTOMOBILE PRACTICES._
H04 0010  6       The practice of state-owned vehicles for use of
H04 0020  5    employees on business dates back over forty years.
H04 0030  1    At least one state vehicle was in existence in 1917.
H04 0030 11       The state presently owns 389 passenger vehicles
H04 0040  7    in comparison to approximately 200 in 1940.
H04 0050  4       The automobile maintenance unit, or motor pool,
H04 0060  1    came into existence in 1942 and has been responsible
H04 0060 10    for centralized maintenance and management of state-owned
H04 0070  7    transportation since that time.
H04 0080  2       The motor pool has made exceptional progress in
H04 0080 10    automotive management including establishment of cost
H04 0090  6    billing systems, records keeping, analyses of vehicle
H04 0100  5    use, and effecting economies in vehicle operation.
H04 0110  2    Cars were operated in 1959 for an average .027@ per
H04 0110 12    mile.
H04 0120  1       Purchase of state vehicles is handled similarly
H04 0120  8    to all state purchases. Unit prices to the state are
H04 0130  8    considerably lower than to the general public because
H04 0140  5    of quantity purchases and no payment of state sales
H04 0150  2    or federal excise taxes.
H04 0160  1    _VEHICLE PURCHASE, ASSIGNMENT AND USE POLICIES._
H04 0160  3       The legislature's role in policy determination concerning
H04 0170  1    state-owned vehicles has been confined almost exclusively
H04 0170  9    to appropriating funds for vehicles.
H04 0180  5       The meaningful policies governing the purchase,
H04 0190  3    assignment, use and management of state vehicles have
H04 0200  1    been shaped by the state's administrative officers.
H04 0200  8       Meaningful policies include: (a) kinds of cars the
H04 0210  8    state should own, (b) when cars should be traded, (c)
H04 0220  7    the need and assignment of vehicles, (d) use of cars
H04 0230  5    in lieu of mileage allowances, (e) employees taking
H04 0230 13    cars home, and (f) need for liability insurance on
H04 0240  9    state automobiles.
H04 0250  1       A review of these policies indicates:
H04 0250  7    _(1)_
H04 0250  8       The state purchases and assigns grades of cars according
H04 0260  7    to need and position status of driver and use of vehicle.
H04 0270  7    _(2)_
H04 0270  8       The purchase of compact (economy) cars is being
H04 0280  4    made currently on a test basis.
H04 0280 10    _(3)_
H04 0280 11       Cars are traded mostly on a three-year basis in
H04 0290 10    the interest of economy.
H04 0300  1    _(4)_
H04 0300  1       The factors governing need and assignment of cars
H04 0300  9    are flexible according to circumstances.
H04 0310  4    _(5)_
H04 0310  5       Unsuccessful efforts have been made to replace high
H04 0320  5    mileage allowances with state automobiles.
H04 0330  1    _(6)_
H04 0330  1       It is reasonably economical for the state to have
H04 0330 10    drivers garage state cars at their homes.
H04 0340  6    _(7)_
H04 0340  7       The state has recently undertaken liability insurance
H04 0350  3    for drivers of state cars.
H04 0360  1    _AUTOMOBILE PRACTICES IN OTHER STATES._
H04 0360  4       A survey of practices and/or policies in other states
H04 0370  2    concerning assignment and use of state automobiles
H04 0370  9    reveals several points for comparison with Rhode Island's
H04 0380  8    practices.
H04 0390  1       Forty-seven states assign or provide vehicles for
H04 0390  9    employees on state business. Two other states provide
H04 0400  6    vehicles, but only with legislative approval.
H04 0410  2       States which provide automobiles for employees assign
H04 0420  2    them variously to the agency, the individual, or to
H04 0420 11    a central pool.
H04 0430  1       Twenty-six states operate a central motor pool for
H04 0430 10    acquisition, allocation and/or maintenance of state-owned
H04 0440  7    vehicles.
H04 0450  1       Nineteen states report laws, policies or regulations
H04 0450  8    for assigning state vehicles in lieu of paying mileage
H04 0460  7    allowances. Of these states the average "change-over"
H04 0470  4    point (at which a car is substituted for allowances)
H04 0480  1    is 13,200 miles per year.
H04 0480  6    _MILEAGE ALLOWANCES._
H04 0480  8       Mileage allowances for state employees are of two
H04 0490  8    types: (a) actual mileage and (b) fixed monthly allowances.
H04 0500  6       Actual mileage allowances are itemized reimbursements
H04 0510  4    allowed employees for the use of personally-owned vehicles
H04 0520  2    on state business at the rate of .07@ per mile. Fixed
H04 0530  1    monthly allowances are reimbursements for the same
H04 0530  8    purpose except on a non-itemized basis. Both allowances
H04 0540  8    are governed by conditions and restrictions set forth
H04 0550  4    in detail in the state's Travel Regulations.
H04 0560  1       Rhode Island's reimburseable rate of .07@ per mile
H04 0560  9    for use of personally-owned cars compares favorably
H04 0570  8    with other states' rates. The average of states' rates
H04 0580  7    is .076@ per mile.
H04 0590  1       Rhode Island's rate of .07@ per mile is considerably
H04 0590 10    lower than reimburseable rates in the federal government
H04 0600  7    and in industry nationally which approximate a .09@
H04 0610  5    per mile average.
H04 0610  8       Actual mileage allowances are well-administered
H04 0620  5    and not unduly expensive for the state. The travel
H04 0630  3    regulations, requirements and procedures governing
H04 0630  8    reimbursement are controlled properly and not overly
H04 0640  7    restrictive.
H04 0650  1       Fixed monthly allowances are a controversial subject.
H04 0650  8    They have a great advantage in ease of audit time and
H04 0660  8    payment. However, they lend themselves to abuse and
H04 0670  4    inadequate control measures. Flat payments over $50
H04 0680  2    per month are more expensive to the state than the
H04 0680 12    assignment of state-owned vehicles.
H04 0690  4    _TRAVEL ALLOWANCES._
H04 0690  6       Travel allowances, including subsistence, have been
H04 0700  4    revised by administrative officials recently and compare
H04 0710  3    favorably with other states' allowances. With few exceptions
H04 0720  2    travelers on state business are allowed actual travel
H04 0720 10    expenses and $15 per day subsistence. Travel allowances
H04 0730  8    are well-regulated and pose little problem in administration
H04 0740  7    and/or audit control.
H04 0750  1    #ORIGIN OF STATE AUTOMOBILE PRACTICES#
H04 0750  5    _GENERAL BACKGROUND._
H04 0750  7       It is difficult to pinpoint the time of origin of
H04 0760 10    the state purchasing automobiles for use of employees
H04 0770  5    in Rhode Island. Few records are available concerning
H04 0780  2    the subject prior to 1940. Those that are available
H04 0790  1    shed little light. The Registry of Motor Vehicles indicates
H04 0790 10    that at least one state automobile was registered as
H04 0800  9    far back as 1917. It should be enough to say that the
H04 0810  8    practice of the state buying automobiles is at least
H04 0820  4    forty years old.
H04 0820  7       The best reason that can be advanced for the state
H04 0830  5    adopting the practice was the advent of expanded highway
H04 0840  2    construction during the 1920s and '30s. At that time
H04 0840 11    highway engineers traveled rough and dirty roads to
H04 0850  8    accomplish their duties. Using privately-owned vehicles
H04 0860  5    was a personal hardship for such employees, and the
H04 0870  3    matter of providing state transportation was felt perfectly
H04 0880  1    justifiable.
H04 0880  2       Once the principle was established, the increase
H04 0890  1    in state-owned vehicles came rapidly. And reasons other
H04 0890 10    than employee need contributed to the growth. Table
H04 0900  7    1 immediately below shows the rate of growth of vehicles
H04 0910  7    and employees. This rate of increase does not signify
H04 0920  4    anything in itself. It does not indicate loose management,
H04 0930  1    ineffective controls or poor policy. But it does show
H04 0930 10    that automobiles have increased steadily over the years
H04 0940  7    and in almost the same proportion to the increase of
H04 0950  6    state employees. In the past twenty years the ratio
H04 0960  4    of state-owned automobiles per state employees has
H04 0960 12    varied from 1 to 22 then to 1 to 23 now. Whether there
H04 0970 13    were too few automobiles in 1940 or too many now is
H04 0980  8    problematical. The fact is simply that state-owned
H04 0990  4    vehicles have remained in practically the same proportion
H04 1000  1    as employees to use them.
H04 1010  1    _HISTORY AND OPERATION OF THE MOTOR POOL._
H04 1010  2       While the origin of state-owned automobiles may
H04 1010 10    be obscured, subsequent developments concerning the
H04 1020  5    assignment, use, and management of state automobiles
H04 1030  4    can be related more clearly. Prior to 1942, automobiles
H04 1040  2    were the individual responsibility of the agency to
H04 1040 10    which assigned. This responsibility included all phases
H04 1050  7    of management. It embraced determining when to purchase
H04 1060  6    and when to trade vehicles, who was to drive, when
H04 1070  5    and where repairs were to be made, where gasoline and
H04 1080  2    automobile services were to be obtained and other allied
H04 1080 11    matters. In 1942, however, the nation was at war. Gasoline
H04 1090 10    and automobile tires were rationed commodities. The
H04 1100  5    state was confronted with transportation problems similar
H04 1110  3    to those of the individual. It met these problems by
H04 1120  2    the creation of the state automobile maintenance unit
H04 1120 10    (more popularly called the motor pool), a centralized
H04 1130  7    operation for the maintenance and control of all state
H04 1140  6    transportation. The motor pool then, as now, had headquarter
H04 1150  5    facilities in Providence and other garages located
H04 1160  1    throughout the state. It was organizationally the responsibility
H04 1170  1    of the Department of Public Works and was financed
H04 1170 10    on a rotary fund basis with each agency of government
H04 1180  7    contributing to the pool's operation. In 1951 the pool's
H04 1190  5    operation was transferred to the newly-created Department
H04 1200  2    of Administration, an agency established as the central
H04 1210  2    staff and auxiliary department of the state government.
H04 1210 10    The management of state-owned vehicles since that time
H04 1220  8    has been described in a recent report in the following
H04 1230  7    manner: "
H04 1230  8       Under this new management considerable progress
H04 1240  4    appears to have been made. The agencies of government
H04 1250  3    are now billed for the actual cost of services provided
H04 1260  1    to each passenger car rather than the prior uniform
H04 1260 10    charge for all cars. Whereas the maintenance rotary
H04 1270  6    fund had in the past sustained losses considerably
H04 1280  3    beyond expectations, the introduction of the cost-billing
H04 1290  1    system plus other control refinements has resulted
H04 1290  8    in keeping the fund on a proper working basis. One
H04 1300  9    indication of the merits of the new management is found
H04 1310  6    in the fact that during the period 1951-1956, while
H04 1320  2    total annual mileage put on the vehicles increased
H04 1320 10    35%, the total maintenance cost increased only 11%.
H04 1330  7    "
H04 1330  7       In order to further refine the management of passenger
H04 1340  8    vehicles, on July 1, 1958, the actual title to every
H04 1350  6    vehicle was transferred, by Executive Order, to the
H04 1360  4    Division of Methods, Research and Office Services.
H04 1370  1    The objective behind this action was to place in one
H04 1370 11    agency the responsibility for the management, assignment,
H04 1380  5    and replacement of all vehicles. (Note: So far as State
H04 1390  6    Police cars are concerned, only their replacement is
H04 1400  3    under this division). This tied in closely with the
H04 1410  1    current attempt to upgrade state-owned cars to the
H04 1410 10    extent that vehicles are not retained beyond the point
H04 1420  7    where maintenance costs (in light of depreciation)
H04 1430  3    become excessive. Moreover, it allows the present management
H04 1440  1    to reassign vehicles so that mileage will be more uniformly
H04 1450  1    distributed throughout the fleet; for example, if one
H04 1450  9    driver puts on 22,000 miles per year and another driver
H04 1460  8    8,000 miles per year, their cars will be switched so
H04 1470  6    that both cars will have 30,000 miles after two years,
H04 1480  2    rather than 44,000 miles (and related higher maintenance
H04 1480 10    costs) and 16,000 miles respectively".
H04 1490  5       The motor pool is a completely centralized and mechanized
H04 1500  4    operation. It handles all types of vehicle maintenance,
H04 1510  3    but concentrates more on "service station activities"
H04 1520  1    than on extensive vehicle repairs. It contracts with
H04 1520  9    outside repair garages for much of the latter work.
H04 1530  9    Where the pool excels is in its compilation of maintenance
H04 1540  6    and cost-data studies and analyses. Pool records reveal
H04 1550  4    in detail the cost per mile and miles per gallon of
H04 1560  2    each vehicle, the miles traveled in one year or three
H04 1560 12    years, the periods when vehicle costs become excessive,
H04 1570  6    and when cars should be traded for sound economies.
H04 1580  4    From this, motor pool personnel develop other meaningful
H04 1590  2    and related data. In 1959-60, vehicles averaged an
H04 1590 11    operating cost of .027@ per mile. Based on this figure
H04 1600 10    and considering depreciation costs of vehicles, pool
H04 1610  5    personnel have determined that travel in excess of
H04 1620  4    10,000 miles annually is more economical by state car
H04 1630  1    than by payment of allowances for use of personally-owned
H04 1630 11    vehicles. They estimate further that with sufficient
H04 1640  6    experience and when cost-data of compact cars is compiled,
H04 1650  6    the break-even point may be reduced to 7,500 miles
H04 1660  3    of travel per year. Table 2 shows operating cost data
H04 1660 13    of state vehicles selected at random.
H04 1670  6       One matter of concern to the complete effectiveness
H04 1680  4    of pool operations is the lack of adequate central
H04 1690  2    garage facilities. Present pool quarters at two locations
H04 1690 10    in Providence are crowded, antiquated and, in general,
H04 1700  8    make for inefficient operation in terms of dispersement
H04 1710  6    of personnel and duplication of such operational needs
H04 1720  4    as stock and repair equipment. Good facilities would
H04 1730  2    be a decided help to pool operations and probably reduce
H04 1730 12    vehicle costs even more.
H04 1740  4    _PURCHASING PRACTICES._
H04 1740  6       The purchase of state-owned vehicles is handled
H04 1750  4    in the same manner as all other purchases of the state.
H04 1760  4    Requests are made by the motor pool along with any
H04 1760 14    necessary cooperation from the agencies to which assignments
H04 1770  8    of cars will be made. Bids are evaluated by the Division
H04 1780  9    of Purchases with the assistance of pool staff, and
H04 1790  6    awards for the purchase of the automobiles are made
H04 1800  3    to the lowest responsible bidders. Unit prices for
H04 1800 11    state vehicles are invariably lower than to the general
H04 1810  9    public. The reasons are obvious: (1) the state is buying
H04 1820  8    in quantity, and (2) it has no federal excise or state
H04 1830  5    sales tax to pay. Until 1958 the state was also entitled
H04 1840  2    to a special type of manufacturers' discount through
H04 1840 10    the dealers.
H04 1850  2       In that ownership of all vehicles rests with the
H04 1850 11    state motor pool, cars are paid for with funds appropriated
H04 1860 10    to the agencies but transferred to the rotary fund
H04 1870  7    mentioned earlier. This is a normal governmental procedure
H04 1880  3    which reflects more accurately cost-accounting principles.
H04 1890  2    The assignment and use of vehicles after purchase is
H04 1900  1    another matter to be covered in detail later.
H04 1900  9    #VEHICLE PURCHASE, ASSIGNMENT, AND USE POLICIES#
H04 1910  5    Probably the most important of all matters for review
H04 1920  3    are the broad administrative policies governing the
H04 1920 10    purchase, assignment, use, and management of state
H04 1930  7    vehicles. The legislature's role in policy determination
H04 1940  5    in this area for years has been confined almost solely
H04 1950  4    to the amount of funds appropriated annually for the
H04 1960  3    purchase and operation of vehicles. The more meaningful
H04 1960 11    policies have been left to the judgment of the chief
H04 1970 10    administrative officer of the state- the Director of
H04 1980  7    Administration.
H05 0010  1    #THE RHODE ISLAND PROPERTY TAX#
H05 0010  6    There was a time some years ago when local taxation
H05 0020  3    by the cities and towns was sufficient to support their
H05 0030  1    own operations and a part of the cost of the state
H05 0030 12    government as well. For many years a state tax on cities
H05 0040 10    and towns was paid by the several municipalities to
H05 0050  4    the state from the proceeds of the general property
H05 0060  1    tax. This tax was discontinued in 1936.
H05 0060  8       Since that time the demands of the citizens for
H05 0070  7    new and expanded services have placed financial burdens
H05 0080  3    on the state which could not have been foreseen in
H05 0090  1    earlier years. At the same time there has been an upgrading
H05 0090 12    and expansion of municipal services as well. Thus,
H05 0100  7    there has come into being a situation in which the
H05 0110  6    state must raise all of its own revenues and, in addition,
H05 0120  3    must give assistance to its local governments.
H05 0130  1       This financial assistance from the state has become
H05 0130  8    necessary because the local governments themselves
H05 0140  5    found the property tax, or at least at the rates then
H05 0150  4    existing, insufficient for their requirements.
H05 0160  1       Consequently there have developed several forms
H05 0160  6    of grants-in-aid and shared taxes, as well as the unrestricted
H05 0170  8    grant to local governments for general purposes whose
H05 0180  5    adoption accompanied the introduction of a sales tax
H05 0190  3    at the state level.
H05 0190  7       Notwithstanding state aid, the local governments
H05 0200  2    are continuing to seek additional revenue of their
H05 0200 10    own by strengthening the property tax. This is being
H05 0210  9    done both by the revaluation of real property and by
H05 0220  6    seeking out forms of personal property hitherto neglected
H05 0230  3    or ignored.
H05 0230  5       Taxation of tangible movable property in Rhode Island
H05 0240  5    has been generally of a "hands off" nature due possibly
H05 0250  3    to several reasons: (1) local assessors, in the main,
H05 0260  1    are not well paid and have inadequate office staffs,
H05 0260 10    (2) the numerous categories of this component of personal
H05 0270  7    property make locating extremely difficult, and (3)
H05 0280  4    the inexperience of the majority of assessors in evaluating
H05 0290  3    this type of property.
H05 0300  1    _PROBLEMS OF TAXING PERSONAL PROPERTY._
H05 0300  2       Among the many problems in the taxing of personal
H05 0300 11    property, and of movable tangible property in particular,
H05 0310  8    two are significant: (1) situs, (2) fair and equitable
H05 0320  7    assessment of value. These problems are not local to
H05 0330  6    Rhode Island, but are recognized as common to all states.
H05 0340  4    _SITUS OF PROPERTY._
H05 0340  7       Although the laws of the various states, in general,
H05 0350  4    specify the situs of property, i&e&, residence or domicile
H05 0360  3    of the owner, or location of the property, the exceptions
H05 0370  1    regarding boats, airplanes, mobile homes, etc&, seem
H05 0370  8    to add to the uncertainty of the proper origination
H05 0380  7    point for assessment.
H05 0390  1       Rhode Island law specifies that all real estate
H05 0390  9    is taxable in the town in which it is situated. It
H05 0400  8    also provides for the taxation of all personal property,
H05 0410  3    belonging to inhabitants of the state, both tangible
H05 0420  1    and intangible, and the tangible personal property
H05 0420  8    of non-residents in this state. In defining personal
H05 0430  7    property, it specifically mentions "all ships or vessels,
H05 0440  5    at home or abroad".
H05 0440  9       Intangible property is taxable wherever the owner
H05 0450  7    has a place of abode the greater portion of the year.
H05 0460  5    Although a similar situs for tangible property is mentioned
H05 0470  3    in the statute, this is cancelled out by the provision
H05 0480  1    that definite kinds of property "and all other tangible
H05 0480 10    property" situated or being in any town is taxable
H05 0490  9    where the property is situated. This would seem to
H05 0500  5    fix the tax situs of all movable personal property
H05 0510  1    at its location on December 31.
H05 0510  7       Both boats and aircraft would fall within this category,
H05 0520  5    as well as motor vehicles. The location of the latter
H05 0530  4    now is determined for tax purposes at the time of registration,
H05 0540  1    and it is now accepted practice to consider a motor
H05 0540 11    vehicle as being situated where it is garaged. Obviously,
H05 0550  9    it would be impossible to determine where every vehicle
H05 0560  6    might be on the 31st day of December. In view of the
H05 0570  5    acceptance accorded the status of motor vehicles for
H05 0580  2    tax purposes, in the absence of any specific provision
H05 0580 11    it would seem entirely consistent to apply the same
H05 0590  8    interpretation to boats or aircraft.
H05 0600  2       A recent example of this problem is the flying of
H05 0600 12    six airplanes, on December 31, 1960, from the Newport
H05 0610  9    Airpark in Middletown, to the North Central Airport
H05 0620  6    in Smithfield. This situation resulted in both towns
H05 0630  5    claiming the tax, and probably justifiably. Middletown
H05 0640  2    bases its claim on the general provision of the law
H05 0640 12    that "all rateable property, both tangible and intangible,
H05 0650  7    shall be taxed to the owner thereof in the town in
H05 0660  9    which such owner shall have had his actual place of
H05 0670  4    abode for the larger portion of the twelve (12) months
H05 0680  1    next preceding the first day of April in each year".
H05 0680 11       The Smithfield tax assessor, in turn, claims the
H05 0690  8    tax under the provision of law "**h and all other tangible
H05 0700  8    personal property situated or being in any town, in
H05 0710  5    or upon any **h place of storage **h shall be taxed
H05 0720  1    to such person **h in the town where said property
H05 0720 11    is situated".
H05 0730  1    _ASSESSMENT OF VALUE._
H05 0730  4       This problem of fair and equitable assessment of
H05 0740  2    value is a difficult one to solve in that the determination
H05 0740 13    of fair valuation is dependent on local assessors,
H05 0750  8    who in general are non-professional and part-time personnel
H05 0760  5    taking an individualistic approach to the problem.
H05 0770  4    This accounts for the wide variance in assessment practices
H05 0780  2    of movable tangible property in the various municipalities
H05 0780 10    in Rhode Island.
H05 0790  3       This condition will undoubtedly continue until such
H05 0800  2    time as a state uniform system of evaluation is established,
H05 0810  1    or through mutual agreement of the local assessing
H05 0810  9    officials for a method of standard assessment practice
H05 0820  5    to be adopted.
H05 0820  8       The Rhode Island Public Expenditure Council in its
H05 0830  7    publication once commented: "
H05 0840  1       The most realistic way of facing up to this problem
H05 0840 11    would be to have the State take over full responsibility
H05 0850 10    for assessing all taxable property. An adequately staffed
H05 0860  7    and equipped State assessing office could apply uniform
H05 0870  5    methods and standards which would go far toward producing
H05 0880  3    equitable assessments on all properties throughout
H05 0890  1    the State. A single statewide assessing unit would
H05 0890  9    eliminate the differences and complications that are
H05 0900  5    inherent in a system of 39 different and independent
H05 0910  3    assessing units".
H05 0910  5       The Institute of Public Administration, in its report
H05 0920  5    to the State Fiscal Study Commission in 1959, recommended
H05 0930  4    "consolidating and centralizing all aspects of property
H05 0940  3    tax administration in a single state agency professionally
H05 0950  1    organized and equipped for the job". The resulting
H05 0950  9    setup, it was declared, "would be similar to that which
H05 0960  8    is in successful operation in a number of metropolitan
H05 0970  6    counties as large or larger than Rhode Island".
H05 0980  2    _PRACTICES IN RHODE ISLAND._
H05 0980  6       To determine the practice and attitude of municipal
H05 0990  5    governments concerning tangible movable property, a
H05 1000  2    questionnaire was sent to all local government assessors
H05 1000 10    or boards of assessors in Rhode Island.
H05 1010  7       The replies from each individual town are not given
H05 1020  6    in detail because the questions asked the personal
H05 1030  2    opinion of the several assessors and are not necessarily
H05 1030 11    the established policy of the town in each case. There
H05 1040 10    are legitimate reasons for differences of opinion among
H05 1050  6    the assessors as a whole and among the public officials
H05 1060  4    in each town. These opinions of the assessors are of
H05 1070  3    significance in indicating what their thinking seems
H05 1070 10    to be at the present time.
H05 1080  4       In reply to a question of whether they now tax boats,
H05 1090  3    airplanes and other movable property excluding automobiles,
H05 1100  1    nineteen said that they did and twenty that they did
H05 1100 11    not. The wording of the question was quite general
H05 1110  7    and may have been subject to different interpretations.
H05 1120  2    One assessor checked boats only, another trailers and
H05 1130  2    tractors, one mentioned house trailers, and two others
H05 1130 10    referred to trailers without specifying the type. In
H05 1140  8    two cases, airplanes only were indicated.
H05 1150  3       It is difficult to tabulate exactly what was meant
H05 1160  2    in each individual situation, but the conclusion may
H05 1160 10    be drawn that 21 towns do not assess movable personal
H05 1170  9    property, and of the remainder only certain types are
H05 1180  5    valued for tax purposes. Boats were indicated specifically
H05 1190  2    by only one of the five towns known to tax boats. It
H05 1200  2    would seem, then, that movable property and equipment
H05 1200 10    is not taxed as a whole but that certain types are
H05 1210  9    taxed in towns where this is bound to be expedient
H05 1220  4    for that particular kind of personal property.
H05 1230  1       So few answered the question relating to their efforts
H05 1230 10    to assess movable property that the results are inconclusive.
H05 1240  8    Only four towns indicated that they made any more than
H05 1250  7    a normal effort to list property of this kind.
H05 1260  4       Of greater interest is a question as to whether
H05 1270  1    movable property was assessed according to its location
H05 1270  9    or ownership. Fifteen stated that it was according
H05 1280  7    to location, four by residence of the owner, and nineteen
H05 1290  6    did not answer.
H05 1290  9       Twenty-seven assessors stated that they were in
H05 1300  6    favor of improved means for assessing movable personal
H05 1310  2    property, and only five were opposed. Seven others
H05 1310 10    expressed no opinion. On this point there was fairly
H05 1320  9    general agreement that assessors would like to do more
H05 1330  7    than they are doing now. It is not clear, however,
H05 1340  3    whether they are thinking of all movable property or
H05 1350  1    only of boats, trailers, aircraft or certain other
H05 1350  9    types of personal property whose assessment would be
H05 1360  6    advantageous to their particular towns.
H05 1370  1       Another question that was asked of the assessors
H05 1370  9    was whether they favored the assessment of movable
H05 1380  7    property at its location or at the residence of the
H05 1390  6    owner. Eighteen voted for assessment by the town in
H05 1400  3    which it is located and eleven preferred assessment
H05 1400 11    by the town in which the owner resides. Ten others
H05 1410  8    made no reply. Of those who have an opinion, it seems
H05 1420  6    that assessment by location is preferred. There was
H05 1430  2    one vote for location being the place where the property
H05 1430 12    is situated for the greater portion of the twelve months
H05 1440 10    preceding the assessment date.
H05 1450  2       To summarize, it may be said that there is no one
H05 1460  1    prevailing practice in Rhode Island with respect to
H05 1460  9    the taxation of movable property, that assessors would
H05 1470  7    like to see an improvement, and of those who have an
H05 1480  7    opinion, that assessment by the town of location is
H05 1490  2    preferred on the basis of their present knowledge.
H05 1490 10    The need for greater knowledge is evident from their
H05 1500  7    replies.
H05 1500  8    #BOATS AS PERSONAL PROPERTY#
H05 1510  2    _TAXING OF BOATS._
H05 1510  5       Interest has been shown for a number of years by
H05 1520  4    local assessors in the possibility of taxing boats.
H05 1530  1    Assessors in Rhode Island are charged not only with
H05 1530 10    placing a valuation upon real and personal property,
H05 1540  6    but they also have the responsibility to raise by a
H05 1550  5    tax "a sum not less than nor more than" a specified
H05 1560  1    amount as ordered by a city council or financial town
H05 1560 11    meeting.
H05 1570  1       It has been obvious to the assessors, particularly
H05 1570  9    those in shore communities, that boats comprise the
H05 1580  6    largest category of tangible personal property which
H05 1590  3    they have been unable to reach. Through their professional
H05 1600  2    organization, the Rhode Island Tax Officials Association
H05 1610  1    the question of taxing boats long has been debated
H05 1610 10    and discussed. No satisfactory solution has been found,
H05 1620  7    but this is due more to the difficulties inherent in
H05 1630  4    the problem than to a lack of interest or diligence
H05 1640  1    on the part of the assessors.
H05 1640  7       It has been estimated that the value of boats in
H05 1650  6    Rhode Island waters is something in excess of fifty
H05 1660  3    million dollars, excluding commercial boats. It is
H05 1660 10    obvious that this is a potential and lucrative source
H05 1670  8    of revenue for the assessors of those towns where a
H05 1680  6    substantial amount of such property would be subject
H05 1690  2    to taxation.
H05 1690  4       It is known that at least five towns (Barrington,
H05 1700  1    Bristol, Narragansett, Newport and Westerly) place
H05 1700  7    some value on some boats for tax purposes. However,
H05 1710  9    few are taxed, and the owners and location of most
H05 1720  7    boats are unknown to the assessors on the date of assessment
H05 1730  5    of town valuations.
H05 1730  8       No one really knows how many boats there actually
H05 1740  6    are or what their aggregate value may be. Slightly
H05 1750  3    more than 5,000 boats were registered with the Coast
H05 1750 12    Guard prior to the recent passage of the state boating
H05 1760 10    law. Only a few more than 10,000 boats had been registered
H05 1770  8    with the Division of Harbors and Rivers at the end
H05 1780  6    of the 1960 boating season, but many had been taken
H05 1790  3    out of the water early when the threat of a hurricane
H05 1790 14    brought the season to an early close.
H05 1800  7       The assessors' association, meeting at Narragansett
H05 1810  4    in September 1960, devoted its session to a discussion
H05 1820  2    of the boat problem.
H06 0010  1       Local industry's investment in Rhode Island was
H06 0010  8    the big story in 1960's industrial development effort.
H06 0020  6    Fifty-two companies started or committed themselves
H06 0030  4    to new plant construction, totaling 1,418,000 square
H06 0040  2    feet and representing an investment of $11,900,000;
H06 0040  9    a new post-World War /2, record. With minor exceptions,
H06 0050 10    this expansion was instituted either by firms based
H06 0060  7    in Rhode Island or out-of-state manufacturers already
H06 0080  3    operating here.
H06 0080  5       What made these new location figures particularly
H06 0090  4    impressive was the fact that although 1960 was a year
H06 0100  4    of mild business recession throughout the nation, Rhode
H06 0110  1    Island scored marked progress in new industry, new
H06 0110  9    plants, and new jobs.
H06 0120  1       Of the major expansions in 1960, three were financed
H06 0120 10    under the R& I& Industrial Building Authority's 100%
H06 0130  8    guaranteed mortgage plan: Collyer Wire, Leesona Corporation,
H06 0140  7    and American Tube + Controls. Leading firms that arranged
H06 0150  8    their own financing included Speidel Corporation,
H06 0160  4    Cornell-Dubilier,
H06 0160  6    Photek, Inc& Division of Textron, Narragansett Gray
H06 0170  6    Iron Foundry, W& R& Cobb Company, and Mays Manufacturing
H06 0180  6    Company.
H06 0180  7       Expansion and relocation of industry in Rhode Island
H06 0190  8    is the direct responsibility of the Development Council's
H06 0200  5    Industrial Division, and the figures quoted above indicate
H06 0210  4    a successful year's operation. Industrial Division
H06 0220  2    personnel worked with 54 out-of-state and 97 Rhode
H06 0220 12    Island concerns during 1960, many of whom are still
H06 0230  9    interested in a Rhode Island location. They are conscious
H06 0240  6    of this state's new feeling of optimism and assurance
H06 0250  5    and are definitely impressed by the number of new plants
H06 0260  3    and construction projects in Rhode Island.
H06 0270  1    _AIDS TO SMALL BUSINESS#
H06 0280  1    Although much of the Industrial Division's promotional
H06 0280  1    effort is devoted to securing new locations and expansions
H06 0290  1    by major industries, small business is also afforded
H06 0300  1    considerable attention. Our Office of Foreign and Domestic
H06 0310  1    Commerce carries on a vigorous program, directly aimed
H06 0320  1    at solving and expediting the problems of manufacturers
H06 0320  2    in the lower employment categories.
H06 0320  7       A primary function is the operation of a Government
H06 0330  7    Bid Center, which receives bids daily from the Federal
H06 0340  6    Government's principal purchasing agencies. Assistance
H06 0350  2    is rendered to interested Rhode Island businessmen
H06 0360  1    concerning interpretation of bid invitations, where
H06 0360  7    to obtain specifications, and follow-ups concerning
H06 0370  5    qualification. During the past year, 10,517 government
H06 0380  3    bid invitations were received and 4,427 procurement
H06 0390  1    leads were mailed to Rhode Island manufacturers.
H06 0390  8       In addition, the Office's domestic trade program
H06 0400  6    provided consultant services to those seeking information
H06 0410  5    on establishment of new businesses; how and where to
H06 0420  5    apply for financial assistance; details on marketing;
H06 0430  1    information concerning patents, copyrights and trade
H06 0430  7    marks, availability of technical reports, and other
H06 0440  6    subjects of interest to small business.
H06 0450  2       The Office of Foreign and Domestic Commerce is also
H06 0460  2    active in the field of international trade, assisting
H06 0460 10    Rhode Island firms in developing and enlarging markets
H06 0470  7    abroad. This office cooperates with the U& S& Department
H06 0480  6    of Commerce in giving statewide coverage to services
H06 0500  3    which include: statistics on markets abroad; locating
H06 0510  1    foreign agents, buyers, distributors, etc&; information
H06 0510  7    on foreign and domestic import duties and regulations,
H06 0520  8    licensing, investments, and establishing of branch
H06 0530  5    representatives or plants abroad, and documentary requirements
H06 0540  3    concerning export shipments and arrangements for payment.
H06 0550  3       During the year 1960, this office supplied 954 visitors
H06 0560  1    with information related to foreign and domestic commerce,
H06 0560  9    and made 73 field visits.
H06 0570  5    _ADVERTISING PROGRAM_
H06 0570  7       Our media advertising continued, during 1960, its
H06 0580  5    previous effective program that stressed such specifics
H06 0590  3    as 100% financing, plant availabilities, and location
H06 0600  1    advantages. We also continued to run a series of ads
H06 0600 11    featuring endorsement of Rhode Island by industrialists
H06 0610  6    who had recently established new plants here.
H06 0620  4       To reach a still greater audience of location-minded
H06 0630  1    manufacturers, our industrial advertising budget for
H06 0630  7    the fiscal year was increased from $32,000 to $40,000,
H06 0640  8    and the Industrial Building Authority's financial participation
H06 0650  5    was upped from $17,000 to $20,000.
H06 0660  3       Newspaper advertising was mainly concentrated in
H06 0670  1    the New York Times and the Wall Street Journal (Eastern
H06 0670 11    and Midwestern editions) which averaged two prominent
H06 0680  6    ads per month, and to a lesser degree the New York
H06 0690  7    Herald Tribune and, for the west coast, the Los Angeles
H06 0700  4    Times and the Wall Street Journal (Pacific Coast edition).
H06 0710  3    In addition to the regular schedule, advertisements
H06 0720  1    were run for maximum impact in special editions of
H06 0720 10    the New York Times, Boston Herald, American Banker,
H06 0730  5    Electronic News and, for local promotion, the Providence
H06 0740  4    Sunday Journal. Magazine advertising included Management
H06 0750  3    Methods, the New Englander, U& S& Investor, and Plant
H06 0760  3    Location.
H06 0760  4       The direct mail campaign consisted of 3 intra state
H06 0770  5    mailings of 1680 letters each and 6 out-of-state directed
H06 0780  1    to electronics, plastics, pharmaceutical, and business
H06 0780  7    machine manufacturers, and to publishers. These totaled
H06 0790  6    6,768 pieces of correspondence.
H06 0800  1       The 1960 advertising campaign brought a total of
H06 0800  9    239 inquiries; 164 from media and 75 from direct mail.
H06 0810 10    Two hundred and nineteen were received from 35 of our
H06 0820  8    50 United States and 11 came from foreign countries.
H06 0830  3    New York led in the number of inquiries, followed by
H06 0840  2    California, New Jersey, Massachusetts, and Pennsylvania.
H06 0850  1    Among foreign countries responding were Germany, Canada,
H06 0850  8    Brazil and India.
H06 0860  2    _INDUSTRIAL PROMOTION_
H06 0860  4       An important operation in soliciting industrial
H06 0870  2    locations involves what we term "Missionary calls"
H06 0880  1    by one of this Division's industrial promotion specialists.
H06 0880  9    These consist of visits, without previous announcement,
H06 0890  7    on top officials of manufacturing concerns located
H06 0900  4    in highly industrialized areas. More than 25 carefully
H06 0910  4    selected cities were visited, including New York, Brooklyn,
H06 0920  2    Long Island City, Newark, Elizabeth, Stamford, Waterbury,
H06 0930  1    New Haven, Bridgeport, Boston, Cambridge, Worcester,
H06 0930  7    and Waltham.
H06 0940  2       Out of a total of 603 calls, 452 contacts were established
H06 0950  1    with top executive personnel. We received 76 out-of-state
H06 0950 11    visitors interested in investigating Rhode Island's
H06 0960  6    industrial advantages, and Industrial Division personnel
H06 0970  5    made 55 out-of-state follow-up visits.
H06 0980  2    _INDUSTRIAL CONFERENCES_
H06 0980  4       During 1960, two important conferences were organized
H06 0990  3    by the Development Council's Industrial Division. In
H06 1000  2    June, the Office of Foreign and Domestic Commerce-
H06 1010  3    in conjunction with local trade associations, chambers
H06 1010 10    of commerce, and bank officials- sponsored a World
H06 1020  7    Trade Conference at the Sheraton-Biltmore Hotel. Its
H06 1030  3    purpose was to find ways of offsetting the United States'
H06 1040  3    declining balance of trade for 1958 and 1959. Approximately
H06 1050  1    100 representatives of business attended this conclave
H06 1050  8    and the R& I& Export Conference Committee later voted
H06 1060  9    to continue the activity as an annual event.
H06 1070  7       On October 8th of last year, the Industrial Division
H06 1080  4    sponsored the Governor's Conference on Industrial Development
H06 1090  4    at the former Henry Barnard School. A comprehensive
H06 1100  2    program devoted to the various phases of the development
H06 1110  1    effort attracted 143 interested individuals.
H06 1110  6       Morning sessions included addresses by Ward Miller,
H06 1120  6    Jr& of the U& S& Dept& of Commerce. Richard Preston,
H06 1130  5    executive director of the New Hampshire State Planning
H06 1140  3    and Development Commission, and Edwin C& Kepler of
H06 1150  3    General Electric Company. Workshop sessions in the
H06 1150 10    afternoon featured development executives from Pennsylvania,
H06 1160  6    Connecticut and Maine, and rounded out a rewarding
H06 1170  8    program.
H06 1170  9       In connection with this conference, a 64-page supplement
H06 1180  8    was published in the October 2nd edition of the Providence
H06 1190  6    Sunday Journal. Devoted to the improvement in business
H06 1200  4    climate and increase in industrial construction in
H06 1210  2    Rhode Island, it has proved a valuable mailing piece
H06 1210 11    for this Division. More than 2000 copies have been
H06 1220  8    sent out to prospective clients.
H06 1230  1    _MAILINGS AND PUBLICATIONS_
H06 1230  4       Other special mailings by the Industrial Division
H06 1240  3    included copies of speeches delivered at the Governor's
H06 1250  1    Conference, letters and brochures to conferees at Med-Chemical
H06 1260  1    Symposium at University of Rhode Island and letters
H06 1260  9    and reprints of industrial advertisements to such organizations
H06 1270  7    as Society of Industrial Realtors. 1184 copies of the
H06 1280  8    R& I& Directory of Manufacturers were distributed:
H06 1290  4    643 in-state and 541 out-of-state.
H06 1300  1       The Industrial Division published, in 1960, a new,
H06 1300  9    attractive industrial brochure, "Rhode Island- Right
H06 1310  6    For Industry", and prepared copy for a new edition
H06 1320  6    of the Directory of Manufacturers (to be printed shortly),
H06 1330  3    and for a new space catalogue.
H06 1330  9       Additional promotional activities included organizing
H06 1340  4    the dedication program for Operation Turnkey, the new
H06 1350  4    automated post office, and a conference with representatives
H06 1360  2    of Brown University, Providence College, and University
H06 1370  1    of Rhode Island, and eight electronics concerns regarding
H06 1380  1    the inauguration of a training program for electronics
H06 1380  9    personnel.
H06 1380 10    #PLANNING DIVISION#
H06 1390  2    Stated in its simplest terms, the main job of the Planning
H06 1400  2    Division is to plan for the future of the State of
H06 1400 13    Rhode Island. The activities of the Planning Division
H06 1410  8    are defined in considerable detail in the enabling
H06 1420  5    act of the Development Council, which assigns to the
H06 1430  4    agency both broad responsibilities and specific duties
H06 1440  1    in the field of planning.
H06 1440  6       Two years ago, the Institute of Public Administration
H06 1450  3    issued an extremely comprehensive report entitled "State-Local
H06 1460  3    Relations in Metropolitan Rhode Island. As the result
H06 1470  3    of an exhaustive review of the recommendations contained
H06 1470 11    in this report, plus an analysis of our own enabling
H06 1480 10    act, the Planning Division developed a number of basic
H06 1490  7    planning objectives which caused a reorientation of
H06 1500  4    its work program. These objectives are stated here
H06 1510  1    because of their importance in understanding the current
H06 1510  9    activities of the Planning Division.
H06 1520  5    _(1)_
H06 1520  6       First priority will be given to the preparation
H06 1530  3    of a meaningful state guide plan to serve as a background
H06 1540  1    for all other planning activities in the state.
H06 1540  9    _(2)_
H06 1540 10       Recognizing the truth of the statement by the Institute
H06 1550  9    of Public Administration that "Metropolian Planning
H06 1560  4    (in Rhode Island) means, or should mean, state planning",
H06 1570  5    the state guide plan will take into account the metropolitan
H06 1580  3    nature of many of Rhode Island's problems.
H06 1590  1    _(3)_
H06 1590  2       It will continue to be an objective of this division
H06 1590 12    to encourage the acceptance of planning as a proper
H06 1600  8    and continuing responsibility of local government.
H06 1610  4    To this end, the community assistance program of the
H06 1620  3    planning division will continue to be operated as a
H06 1620 12    staff function to make available, on a shared cost
H06 1630  8    basis, technical planning assistance to those communities
H06 1640  5    in the state unable to maintain their own planning
H06 1650  3    staff.
H06 1650  4    _(4)_
H06 1650  5       The planning division will take the initiative in
H06 1660  2    encouraging planning cooperation at all levels of government;
H06 1670  1    among the operating departments of the state; between
H06 1670  9    the cities and towns of the state; and on a regional
H06 1680 10    basis between the six New England states.
H06 1690  3    _(5)_
H06 1690  4       On the basis that all citizens of the state are
H06 1700  2    entitled to benefit equally in the development of its
H06 1700 11    resources, plans for the provision of essential services
H06 1710  8    (such as water) will be based on need regardless of
H06 1720  7    arbitrary political boundaries, within the framework
H06 1730  3    of the state plan.
H06 1730  7    _(6)_
H06 1730  8       The state development budget will reflect the capital
H06 1740  5    needs of all the state agencies and the priority of
H06 1750  2    the projects in the budget will be based on the state
H06 1750 13    plan.
H06 1760  1    _(7)_
H06 1760  2       In preparing the state guide plan, particular attention
H06 1760 10    will be given means of strengthening the economy of
H06 1770  9    the state through the development of industry and recreation.
H06 1780  6       Functionally the planning division carries out four
H06 1790  5    activities: long-range state planning, current state
H06 1800  3    planning, local planning assistance; and the preparation
H06 1810  1    of the state development budget.
H06 1820  1    _LONG RANGE STATE PLANNING_
H06 1820  1       The planning division has embarked on the most complete
H06 1820 10    and comprehensive state planning program in the nation.
H06 1830  7    The long range aspects of this program are divided
H06 1840  5    into four distinct phases: basic mapping, inventory,
H06 1850  2    analysis and plan and policy formation. The work program,
H06 1860  1    as it was originally proposed, was to take five years
H06 1860 11    to complete. Recent events- particularly the necessity
H06 1870  4    of providing planning information for the statewide
H06 1880  4    origin/destination study of the Department of Public
H06 1890  3    Works- indicate that this schedule will have to be
H06 1890 12    accelerated. The basic mapping phase of the program
H06 1900  8    has been completed and the inventory phase is scheduled
H06 1910  6    for completion July 1, 1961.
H06 1920  1    _BASIC MAPPING_
H06 1920  2       Since accurate base maps are necessary for any planning
H06 1930  1    program, the first step taken by the planning division
H06 1930 10    to implement the long range state plan has been to
H06 1940  8    prepare two series of base maps- one at a scale of
H06 1950  8    1 inch to a mile, and the second a series of 26 sheets
H06 1960  1    at a scale of 1 inch to 2000 feet, covering the entire
H06 1960 13    state. With these maps completed, the inventory phase
H06 1970  7    of the plan has been started.
H06 1980  1    _INVENTORY_
H06 1980  2       With the aid of matching federal funds available
H06 1990  1    under Section 701 of the Housing Act of 1954 as amended,
H06 1990 12    the planning division began a one year program July
H06 2000  8    1, 1960 to complete the inventory phase of the state
H06 2010  5    planning program. this phase consists of four items:
H06 2020  2    urban land use, rural land use, physical features and
H06 2020 11    public utility service areas. Since the validity of
H06 2030  8    all subsequent planning depends on the accuracy of
H06 2040  6    the basic inventory information, great care is being
H06 2050  3    taken that the inventory is as complete as possible.
H06 2060  1       The urban land use study carried out by the planning
H06 2060 11    division staff has consisted of identifying and mapping
H06 2070  7    all urban land uses which are of significance to statewide
H06 2080  5    planning. The rural land use study is being carried
H06 2090  3    out under contract by the University of Rhode Island
H06 2100  1    and identifies all agricultural land uses in the state
H06 2100 10    by type of use. The mapping of important physical features
H06 2110  7    such as slopes and types of soil and the collection
H06 2120  6    of all available information pertaining to public utility
H06 2130  3    service areas are being conducted as staff projects
H06 2130 11    and, like the other two inventory projects, are scheduled
H06 2140  9    for completion July 1, 1961.
H06 2150  4    _ANALYSIS_
H06 2150  5       The collection of information is meaningless unless
H06 2160  2    it is understood and used for a definite purpose.
H07 0010  1    _SPECIAL DISTRICTS IN RHODE ISLAND._
H07 0010  6       It is not within the scope of this report elaborate
H07 0020  4    in any great detail upon special districts in Rhode
H07 0030  2    Island. However, a word should be mentioned in regard
H07 0030 11    to them as independent units of government.
H07 0040  6       There are forty-seven special district governments
H07 0050  3    in Rhode Island (excluding two regional school districts,
H07 0060  2    four housing authorities, and the Kent County Water
H07 0070  1    Authority). These forty-seven special purpose governments
H07 0070  8    have the authority to levy taxes, to borrow money,
H07 0080  8    own property, sue and be sued, and in general to exercise
H07 0090  6    normal corporate powers. Unlike cities and towns, however,
H07 0100  4    they do not have to submit any financial statements
H07 0110  1    to the state Bureau of Audits. It is not an exaggeration
H07 0110 12    to say that the state government has little or no fiscal
H07 0120 10    control over these units of government. In addition
H07 0130  5    to the collection of service charges, the special districts
H07 0140  4    levy annual property taxes of approximately $450,000.
H07 0150  1    #FISCAL YEARS IN OTHER STATES#
H07 0150  6    _COMPARATIVE DATA._
H07 0150  8       A review of practices in other states regarding
H07 0160  8    fiscal uniformity is pertinent to this report. Included
H07 0170  5    in the findings are:
H07 0170  9    _1._
H07 0170 10       Forty-six states, including Rhode Island, end their
H07 0180  7    fiscal year on June 30. The other four states end on
H07 0190  8    varying dates: Alabama (Sept& 30), New York (March
H07 0200  5    31), Pennsylvania (May 31), and Texas (August 31).
H07 0210  2    _2._
H07 0210  3       In sixteen states, the fiscal year ending of the
H07 0220  1    cities (June 30) is the same as that of the state:
H07 0220 12    Alaska, Arizona, California, Delaware, Massachusetts,
H07 0230  4    Montana, Nevada, New Mexico, North Carolina, North
H07 0240  4    Dakota, Oklahoma, Oregon, Vermont, West Virginia, Wyoming,
H07 0250  4    and Hawaii).
H07 0250  6    _3._
H07 0250  7       In eleven states, the fiscal year of the cities
H07 0260  7    ends on December 31, while the state fiscal year ends
H07 0270  3    on June 30 (Arkansas, Colorado, Indiana, Kansas, New
H07 0280  1    Hampshire, New Jersey, Ohio, South Dakota, Utah, Washington,
H07 0290  1    and Wisconsin).
H07 0290  3    _4._
H07 0290  4       In eight states whose fiscal years close on June
H07 0300  3    30, a majority of their cities close their fiscal year
H07 0300 13    on December 31: (Georgia, Iowa, Kentucky, Maine, Maryland,
H07 0310  7    Minnesota, Virginia, and South Carolina).
H07 0320  5    _5._
H07 0320  6       One state, Alabama, closes its fiscal year on September
H07 0330  6    30, and all cities in the state, with one exception,
H07 0340  3    also close fiscal years on September 30.
H07 0340 10    _6._
H07 0350  1       Mississippi closes its fiscal year on June 30, while
H07 0350 10    all of its cities close their fiscal years on September
H07 0360  7    30.
H07 0360  8    _7._
H07 0360  9       Pennsylvania closes its fiscal year on May 31. All
H07 0370  8    of its cities close their fiscal years on December
H07 0380  4    31.
H07 0380  5       The remaining twelve states have varying fiscal
H07 0390  2    years for the state, city and local governments. However,
H07 0400  1    only Illinois, Oregon, Louisiana and Rhode Island have
H07 0400  9    a situation in which the sundry units of government
H07 0410  8    vary widely in relation to fiscal uniformity.
H07 0420  2    #FISCAL UNIFORMITY: ADVANTAGES AND DISADVANTAGES#
H07 0430  1    _ADVANTAGES._
H07 0430  2       An excellent summary of advantages concerning the
H07 0440  2    uniform fiscal year and coordinated fiscal calendars
H07 0440  9    was contained in a paper presented by a public finance
H07 0450  9    authority recently. He listed among the values of fiscal
H07 0460  6    uniformity:
H07 0460  7    _1._
H07 0460  8       The uniform fiscal year requires compliance with
H07 0470  5    common sense administration of local finances: adoption
H07 0480  3    of the budget, or financial plan, in advance of spending.
H07 0490  1    _2._
H07 0490  2       The uniform fiscal year ensures conformance with
H07 0490  9    another common sense rule, that of having cash in the
H07 0500 10    bank before checks are drawn. It enables towns to make
H07 0510  8    more economical purchases and to take advantage of
H07 0520  4    cash discounts.
H07 0520  6    _3._
H07 0520  7       The uniform fiscal year promotes more careful budgeting
H07 0530  4    and strengthens control over expenditures. By fixing
H07 0540  3    the tax rate in advance of spending, upper limits are
H07 0540 13    set on expenditures.
H07 0550  3    _4._
H07 0550  4       The uniform fiscal year brings the town's fiscal
H07 0560  2    year into line with that of the schools, which expend
H07 0560 12    the largest share of local disbursements. This greatly
H07 0570  7    simplifies the town's bookkeeping and financial reporting.
H07 0580  5    _5._
H07 0580  6       The uniform fiscal year eliminates interest charges
H07 0590  5    on money borrowed in the form of tax anticipation notes.
H07 0600  3    Furthermore, tax collections not immediately needed
H07 0610  1    for current expenditures may be invested in short-term
H07 0610 10    treasury notes, augmenting the town's miscellaneous
H07 0620  5    revenues and reducing the tax levy.
H07 0630  2    _6._
H07 0630  3       The uniform fiscal year facilitates inter-town comparison
H07 0640  1    of revenues and expenditures. When towns have the same
H07 0640 10    fiscal year it is relatively easy to make meaningful
H07 0650  9    comparisons; and as the cost of local government increases,
H07 0660  6    the demand for such comparison also increases. Towns
H07 0670  3    having different fiscal years are difficult to compare.
H07 0680  1       Of all advantages, probably none is more important
H07 0680  9    than the elimination of tax anticipation notes. Borrowing
H07 0690  8    in anticipation of current taxes and other revenues
H07 0700  7    is a routine procedure of the majority of municipalities
H07 0710  3    at all times. It may be by bank loans, sale of notes
H07 0720  3    or warrants, or by the somewhat casual method of issuance
H07 0720 13    and registration of warrants. In any event it is a
H07 0730 10    form of borrowing which could be and should be rendered
H07 0740  7    unnecessary. Its elimination would result in the saving
H07 0750  5    of interest costs, heavy when short-term money rates
H07 0760  1    are high, and in freedom from dependence on credit
H07 0760 10    which is not always available when needed most. This
H07 0770  6    type of borrowing can be reduced to a minimum if quarterly
H07 0780  6    installment payment of taxes is instituted and the
H07 0790  3    first payment placed near the opening of the fiscal
H07 0790 12    year. Any approach toward such a system looks toward
H07 0800  7    saving and security.
H07 0810  1       It should be noted that there are other and equally
H07 0810 11    important reasons for establishing meaningful intergovernmental
H07 0820  5    reporting bases on a uniform fiscal year. Both the
H07 0830  5    federal and state governments commence their fiscal
H07 0840  2    years on July 1. Both units of government contribute
H07 0840 11    increasingly large sums of money to the several local
H07 0850  9    governments in this state as indicated below: @
H07 0860  6       It has been said that when local government revenues
H07 0870  3    were mostly produced locally from the property tax,
H07 0880  2    the lack of a uniform fiscal year was no great handicap;
H07 0880 13    but with the growth of state and federal fiscal aid,
H07 0890  9    the emphasis on equalization, and the state-local sharing
H07 0900  6    of responsibility for certain important functions,
H07 0910  2    this is no longer true. The haphazard fiscal year calendar
H07 0920  1    is an obstacle to the planning of clear and efficient
H07 0920 11    state-local revenue and expenditure relationships.
H07 0930  5    _DISADVANTAGES._
H07 0930  6       Although there are many sound reasons for adopting
H07 0940  8    uniform and coordinated fiscal years in Rhode Island,
H07 0950  5    there are also certain difficulties encountered. These
H07 0960  2    involve more the mechanics employed in adjusting to
H07 0960 10    fiscal uniformity than they do actual actual disadvantages
H07 0970  8    to the principle. One problem is a matter of shifting
H07 0980  8    dates; the other, is how to finance the transition.
H07 0990  4       Little can be done about the changing of dates.
H07 1000  3    This is an inherent part of adjusting fiscal calendars.
H07 1000 12    It usually means a confused and disgruntled tax-paying
H07 1010  9    public for a period of time. But cooperation and understanding
H07 1020  7    between local officials and the citizenry help lessen
H07 1030  6    this problem.
H07 1030  8       The other problem is the matter of financing the
H07 1040  7    transition period in the several cities and towns.
H07 1050  3    This will be covered more fully later. It should be
H07 1050 13    kept in mind that the ease or difficulty with which
H07 1060 10    a town or city can convert to the proposed plan is
H07 1070  7    directly dependent upon the financial condition of
H07 1080  3    that town or city. Fortunately, there are no cities
H07 1080 12    or towns in the state, with one or two possible exceptions
H07 1090 10    that are in too difficult a position to finance the
H07 1100  7    proposed change. Sacrifice will have to be made in
H07 1110  6    some cases, but it is to the municipality's advantage
H07 1120  1    to finance the change-over for a short period of time
H07 1120 12    rather than pay interest on tax anticipation notes
H07 1130  7    indefinitely.
H07 1130  8    #ADJUSTING THE FISCAL CALENDARS#
H07 1140  3    The advantages of a uniform fiscal year and well synchronized
H07 1150  2    fiscal and tax collection calendars are sufficiently
H07 1150  9    great for Rhode Island municipalities to exert effort
H07 1160  8    to secure them. The type of program desired can be
H07 1170  7    determined by the nature and extent of the adjustments
H07 1180  4    needed. Two features are immediately evident. First,
H07 1190  1    the present situation is too varied to be systematized
H07 1190 10    by any single formula. Second, the shift to a uniform
H07 1200  8    July 1-June 30 fiscal year will, of itself, improve
H07 1210  5    the tax collection calendars of the great majority
H07 1220  2    of cities and towns. There are at least two problems
H07 1220 12    to consider: one is a matter of adjusting the fiscal
H07 1230  9    calendar; the other is how to finance the adjustments
H07 1240  7    when necessary. The latter matter is considered in
H07 1250  4    detail in a later section.
H07 1250  9       Twelve cities and towns in Rhode Island presently
H07 1260  6    indicate some plans to establish a uniform and/or coordinated
H07 1270  4    fiscal-tax year calendar. Plans vary from the "talking
H07 1280  3    stage" to establishing special committees to accomplish
H07 1290  1    this end. What is important here is that many of the
H07 1290 12    cities and towns recognize the need for improved fiscal
H07 1300  7    practices and are taking the initiative to obtain them.
H07 1310  5       An analysis of the fiscal-tax collection year calendars
H07 1320  3    throughout the state indicates that transition may
H07 1330  2    not be as painful as is commonly thought. However,
H07 1330 11    it must be stressed that much depends upon the financial
H07 1340  7    condition of the individual cities and towns involved.
H07 1350  5       The adjustments needed to establish a uniform and
H07 1360  4    coordinated fiscal-tax collection year calendar throughout
H07 1370  1    Rhode Island, based on a July 1-June 30 year, are shown
H07 1370 13    below.
H07 1380  1    _NO ADJUSTMENT NEEDED._
H07 1380  4       Six cities and towns are presently on a July 1-June
H07 1390  4    30 fiscal year and have coordinated their tax collection
H07 1400  1    year with it. No change is required for these towns.
H07 1400 11    These municipalities include: Barrington, Lincoln,
H07 1410  4    Middletown, Newport, North Kingstown, and South Kingstown.
H07 1420  5    _ADJUSTMENT OF FISCAL YEAR._
H07 1430  1       One town and one city, Coventry and East Providence,
H07 1430 10    require an adjustment of their fiscal year only. This
H07 1440  7    change will automatically adjust their tax collection
H07 1450  4    year calendar so as to make all tax installments due
H07 1460  2    and payable in the fiscal year collectible within that
H07 1460 11    year.
H07 1470  1    _ADJUSTMENT OF TAX COLLECTION YEAR._
H07 1470  6       Six cities and towns are now on a July 1-June 30
H07 1480  7    fiscal year and will need only to adjust their tax
H07 1490  2    collection year calendar to establish uniformity. These
H07 1490  9    cities and towns include Bristol, Glocester, Pawtucket,
H07 1500  6    Cumberland, Central Falls, and Woonsocket.
H07 1510  4    _SIMULTANEOUS ADJUSTMENTS._
H07 1510  6       Two cities to be considered, Providence and Cranston,
H07 1520  7    are an enigma. Both have excellent integration of their
H07 1530  5    fiscal-tax collection year calendars. However, neither
H07 1540  3    of these two cities is on the desired July 1-June 30
H07 1550  2    fiscal year.
H07 1550  4       The adjustment to a uniform and coordinated fiscal
H07 1560  1    period could be accomplished relatively easy for them.
H07 1560  9    In that both cities end their fiscal years on September
H07 1570  9    30, they could levy taxes for an interim period of
H07 1580  6    nine months, commencing with September 30 and ending
H07 1590  4    with June 30. These three installment dates would be:
H07 1600  1    October 26, January 26, and April 25 (Providence) and
H07 1600 10    November 15, February 16 and May 15 (Cranston). Both
H07 1610  9    would start their new fiscal year on July 1. Their
H07 1620  7    tax collection calendar could then be: July 25, October
H07 1630  4    26, January 26, and April 25, (Providence); and August
H07 1640  3    15, November 15, February 17, and May 15, (Cranston).
H07 1650  1    Under this plan both Cranston and Providence would
H07 1650  9    be on the uniform fiscal year but would still be using
H07 1660  8    the same installment periods.
H07 1670  1    _VARYING ADJUSTMENTS._
H07 1670  3       The remaining twenty-three towns have fiscal years
H07 1680  2    which end prior to June 30. All of these towns will
H07 1680 13    require adjustments of both their fiscal and tax collection
H07 1690  9    years. Assuming an adjustment to the July 1-June 30
H07 1700  9    fiscal year, the required adjustment of the tax collection
H07 1710  5    years and the towns involved are shown in Table 3.
H07 1720  2    #METHODS OF FINANCING ADJUSTMENTS#
H07 1720  6    Aside from the matter of adjusting the fiscal and tax
H07 1730  7    calendars, there is the problem of financing the adjustment
H07 1740  3    when this is necessary. It should be emphasized strongly
H07 1750  2    that adjustments in fiscal dates or adoption of interim
H07 1750 11    budgets do not necessarily mean financing over and
H07 1760  8    above normal governmental requirements. In many communities
H07 1770  5    there is simply no financial problem; it is only a
H07 1780  6    matter of adjusting accounting methods, careful fiscal
H07 1790  2    planning and management, or some like combination of
H07 1790 10    techniques. In other municipalities the difficulties
H07 1800  6    in overcoming the financial burden have been sufficiently
H07 1810  5    great to dishearten proponents of fiscal year changes.
H07 1820  4    Fortunately, such cases in Rhode Island are more the
H07 1830  2    exception than the rule.
H07 1830  6       As shown earlier in Table 1, the several cities
H07 1840  4    and towns use widely varied fiscal and tax collection
H07 1850  1    calendars. In addition, no two Rhode Island communities
H07 1850  9    are identical in relation to their over-all financial
H07 1860  8    condition. These factors practically insure that no
H07 1870  5    single financing formula is feasible; each situation
H07 1880  2    must be studied and a plan developed that takes into
H07 1880 12    consideration such factors as the effect of the existing
H07 1890  9    and prospective tax calendars, the financial condition
H07 1900  6    of the treasuries, and the length of the transition
H07 1910  4    interval. Suitable plans range from those that are
H07 1920  1    very easy to develop to those that are difficult to
H07 1920 11    formulate and require borrowing ranging from short-term
H07 1930  6    serial notes to long-term bonds.
H07 1940  1       The financial problem, where it exists, usually
H07 1940  8    stems from the adoption of a budget for the transitional
H07 1950  9    or adjustment period. For those communities which have
H07 1960  5    financial difficulties in effecting adjustments, there
H07 1970  2    are a number of alternatives any one of which alone,
H07 1980  1    or in combination with others, would minimize if not
H07 1980 10    even eliminate the problem.
H08 0010  1    #RHODE ISLAND HERITAGE WEEK PROCLAMATION BY JOHN A&
H08 0010  9    NOTTE,JR& GOVERNOR#
H08 0020  2    The theme of Rhode Island Heritage Week for 1961 will
H08 0030  1    be "Independence and Union". It commemorates the 185th
H08 0030  9    anniversary of Rhode Island's Independence when, upon
H08 0040  7    May 4, 1776, the General Assembly, by its action, established
H08 0050  7    the first free republic in the New World.
H08 0060  5       As this year marks the centennial of the beginning
H08 0070  2    of the Civil War, this fact is being commemorated with
H08 0070 12    several exhibits throughout the State, but most of
H08 0080  8    all paying tribute to the first Rhode Island Volunteers
H08 0090  6    who rushed to the defense of the City of Washington,
H08 0100  4    putting at the disposal of President Lincoln the only
H08 0110  3    fully equipped and best trained regiment at this time.
H08 0120  1       On April 30, ceremonies commemorating the departure
H08 0120  8    of these volunteers will take place at 1:00 P&M& at
H08 0130  8    the Dexter Training Grounds in Providence. The Independence
H08 0140  5    Day celebration will be properly observed with a big
H08 0150  5    military and civic parade from West Warwick to the
H08 0160  3    Greene Homestead in Anthony; AND NOW, THEREFORE, DO
H08 0160 11    I, JOHN A& NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE
H08 0170 11    ISLAND AND PROVIDENCE PLANTATIONS, PROCLAIM THE WEEK
H08 0180  5    OF APRIL 29TH TO MAY 7TH, 1961, AS RHODE ISLAND HERITAGE
H08 0190  5    WEEK, advising our citizens that throughout this week
H08 0200  3    many historic houses and beautiful gardens will be
H08 0200 11    open to visitors as well as industrial plants, craft
H08 0210  9    shops, museums and libraries and I earnestly urge all
H08 0220  4    to take advantage of these opportunities to see as
H08 0230  4    many of these places as they can during this outstanding
H08 0240  1    week.
H08 0240  2       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 0250  1    and caused the seal of the State to be affixed this
H08 0250 12    21st day of April, in the year of Our Lord, one thousand
H08 0260  9    nine hundred and sixty-one and on Independence, the
H08 0270  5    one hundred and eighty-fifth.
H08 0270 10       Governor
H08 0290  1    #ARMED FORCES DAY PROCLAMATION BY JOHN A& NOTTE, JR&
H08 0290 10    GOVERNOR#
H08 0290 11    The year 1961 marks the fourteenth anniversary of the
H08 0300  9    unification of our Armed Forces under the National
H08 0310  7    Security Act of 1947.
H08 0320  1       National defense, like the continuing search for
H08 0320  7    peace with freedom and justice for all, is "everybody's
H08 0330  7    business". Our investment in this effort, the greatest
H08 0340  6    in our Nation's history, reflects our determination
H08 0350  2    to ensure the peace and the future of freedom.
H08 0350 11       It is a sound investment. As the President has said,
H08 0360 10    "only when our arms are sufficient beyond doubt can
H08 0370  7    we be certain that they will never be employed".
H08 0380  3       Armed Forces Day is the annual report on this investment,
H08 0390  3    a public presentation designed to give our own people,
H08 0400  1    and the people of other lands who stand with us for
H08 0400 12    peace with freedom and justice, the best possible opportunity
H08 0410  7    to see and understand what we have and why we have
H08 0420  7    it.
H08 0420  8       It is the purpose of Armed Forces Day to give Americans
H08 0430  5    an opportunity to honor men of the Armed Forces, those
H08 0440  3    who have made the supreme sacrifice, those who remain
H08 0450  1    to preserve our security. Freedom depends upon them;
H08 0450  9    NOW, THEREFORE, DO I, JOHN A& NOTTE, JR&, GOVERNOR
H08 0460  8    OF THE STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS,
H08 0470  4    PROCLAIM SATURDAY, MAY 20th, 1961, AS ARMED FORCES
H08 0480  4    DAY, reminding our citizens that we should rededicate
H08 0490  1    ourselves to our Nation, respecting the uniforms as
H08 0490  9    the guardians of our precious liberty.
H08 0500  5       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 0510  5    and caused the seal of the State to be affixed this
H08 0520  2    17th day of May, in the year of Our Lord, one thousand
H08 0520 14    nine hundred and sixty-one, and of Independence, the
H08 0530  8    one hundred and eighty-sixth.
H08 0540  1       Governor
H08 0550  1    #NATIONAL MARITIME DAY PROCLAMATION BY JOHN A& NOTTE,
H08 0550  9    JR& GOVERNOR#
H08 0560  1    The President of the United States, pursuant to a Joint
H08 0560 11    Resolution of Congress, has issued a proclamation each
H08 0570  8    year since 1933 declaring may 22nd to be National Maritime
H08 0580  8    Day.
H08 0580  9       This date in 1819 marked the sailing of the S& S&
H08 0590  9    "Savannah" from Savannah, Georgia, for Liverpool. This
H08 0600  5    voyage was the first successful crossing of the Atlantic
H08 0610  5    under steam propulsion. The day is now appropriately
H08 0620  1    set aside to honor the American men and women who have
H08 0620 12    contributed to the success of our merchant marine fleet
H08 0630  9    in peace and war.
H08 0640  1       The Merchant Marine is the "Fourth Arm of Defense",
H08 0640 10    for a strong and effective American Merchant Marine
H08 0650  8    is essential to the economy and security of our Nation.
H08 0660  8       Through trade and travel across the seas the American
H08 0670  6    Merchant Marine is carrying out its historic mission
H08 0680  3    of linking the United States of America with friendly
H08 0690  1    nations across the seas; AND NOW, THEREFORE, DO I,
H08 0690 10    JOHN A& NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE
H08 0700  9    ISLAND AND PROVIDENCE PLANTATIONS, PROCLAIM MONDAY,
H08 0710  3    MAY 22nd, 1961, AS NATIONAL MARITIME DAY, reminding
H08 0720  3    our citizens that American Merchant ships and American
H08 0730  1    seamen are ready at all times to serve our Nation in
H08 0730 12    the cause of freedom and justice.
H08 0740  5       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 0750  5    and caused the seal of the State to be affixed this
H08 0760  2    20th day of April, in the year of Our Lord, one thousand
H08 0760 14    nine hundred and sixty-one, and of Independence, the
H08 0770  9    one hundred and eighty-fifth.
H08 0780  1       Governor
H08 0790  1    #MISS RHODE ISLAND PAGEANT WEEK PROCLAMATION BY JOHN
H08 0790  9    A& NOTTE, JR& GOVERNOR#
H08 0800  2    The Miss Rhode Island Pageant is sponsored by the Rhode
H08 0810  2    Island Junior Chamber of Commerce as a part of the
H08 0810 12    nation-wide search for the typical American girl- a
H08 0820  8    Miss America from Rhode Island. This is an official
H08 0830  6    preliminary contest of the Miss America Pageant held
H08 0840  3    each September in Atlantic City. The ideal girl- possessed
H08 0850  4    of talent, poise, intelligence, personality and beauty
H08 0860  1    of face and figure- is chosen each year to represent
H08 0860 11    Rhode Island.
H08 0870  1       Many hours are given free by the Jaycees to make
H08 0870 11    this and all local pageants outstanding events. Proceeds
H08 0880  6    realized from these pageants are used by the Jaycees
H08 0890  6    to help support their various youth, health, welfare
H08 0900  2    and community betterment activities throughout the
H08 0900  8    state.
H08 0910  1       Miss Sally May Saabye, (Miss Rhode Island 1960)
H08 0910  9    says that within a short time- on June 17th- her reign
H08 0920 10    will come to an end. She hopes that all will support
H08 0930  8    the contestants from our own community by attending
H08 0940  3    our Pageants and the State Pageant June 17; AND NOW,
H08 0950  3    THEREFORE, DO I, JOHN A& NOTTE, JR&, GOVERNOR OF THE
H08 0950 13    STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS, PROCLAIM
H08 0960  8    THE WEEK OF JUNE 11TH TO 17TH, 1961, AS MISS RHODE
H08 0970  9    ISLAND PAGEANT WEEK, with deep appreciation to the
H08 0980  4    Jaycees, local and statewide, for the presentation
H08 0990  1    of their beautiful Pageants and the encouragement of
H08 0990  9    all Rhode Island girls to participate.
H08 1000  5       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 1010  5    and caused the seal of the State to be affixed this
H08 1020  2    11th day of June, in the year of Our Lord, one thousand
H08 1020 14    nine hundred and sixty-one, and of Independence, the
H08 1030  9    one hundred and eighty-sixth.
H08 1040  1       Governor
H08 1050  1    #UNITED NATIONS DAY PROCLAMATION BY JOHN A& NOTTE,
H08 1050  9    JR&, GOVERNOR#
H08 1060  1    For the purpose of maintaining international peace
H08 1060  8    and promoting the advancement of all people, the United
H08 1070  8    States of America joined in founding the United Nations.
H08 1080  6       The United Nations Charter sets forth standards
H08 1090  4    which, if adhered to, will promote peace and justice
H08 1100  1    throughout the world. It is extremely important for
H08 1100  9    each American to realize that the theme "The United
H08 1110  8    Nations is your business" applies to him personally.
H08 1120  5       The world desperately needs the United Nations.
H08 1130  3    United Nations Day is the birthday of the United Nations,
H08 1140  2    mankind's noblest attempt to establish lasting peace
H08 1140  9    with justice; AND NOW, THEREFORE, DO I, JOHN A& NOTTE,
H08 1150 10    JR&, GOVERNOR OF THE STATE OF RHODE ISLAND AND PROVIDENCE
H08 1160  9    PLANTATIONS, PROCLAIM TUESDAY, OCTOBER 24TH, 1961,
H08 1170  5    AS UNITED NATIONS DAY, calling upon all our citizens
H08 1180  3    to engage in appropriate observances, demonstrating
H08 1180  9    faith in the United Nations and thereby contributing
H08 1190  8    to a better understanding of the aims of the United
H08 1200  7    Nations throughout the land.
H08 1210  1       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 1210 10    and caused the seal of the State to be affixed this
H08 1220 10    5th day of July, in the year of Our Lord, one thousand
H08 1230  6    nine hundred and sixty-one, and of Independence, the
H08 1240  2    one hundred and eighty-sixth.
H08 1240  7       governor
H08 1250  1    #THE STATE BALLET OF RHODE ISLAND WEEK PROCLAMATION
H08 1250  9    BY JOHN A& NOTTE, JR&, GOVERNOR#
H08 1260  3    The ballet originated in Italy about 1450. At that
H08 1270  2    time it was a series of sophisticated social dances
H08 1270 11    whose steps were often combined with other steps devised
H08 1280  8    by the choreographer. Ballet flowered in Italy during
H08 1290  5    the next hundred years, and about 1550 was carried
H08 1300  3    to France when the Italian princess, Catherine de Medicis,
H08 1310  1    married the King of France. The most famous ballet
H08 1310 10    of that time was called Ballet Comique de la Reine
H08 1320  8    (1581). Dances alternated with sung or spoken verses.
H08 1330  6    Ballets were used in opera from its beginning. They
H08 1340  2    were placed either in the middle of the acts or in
H08 1340 13    the intermissions.
H08 1350  1       The State Ballet of Rhode Island, the first incorporated
H08 1360  2    group, was formed for the purpose of extending knowledge
H08 1370  1    of the art of ballet in the Community, to promote interest
H08 1370 12    in ballet performances, to contribute to the cultural
H08 1380  7    life of the State, and to provide opportunity for gifted
H08 1390  5    dance students who, for one reason or another, are
H08 1400  3    unable to pursue a career and to develop others for
H08 1400 13    the professional state; AND NOW, THEREFORE, DO I, JOHN
H08 1410  8    A& NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE ISLAND
H08 1420  8    AND PROVIDENCE PLANTATIONS, PROCLAIM THE WEEK OF MONDAY,
H08 1430  6    NOVEMBER 13, 1961, AS THE STATE BALLET OF RHODE ISLAND
H08 1440  3    WEEK, requesting all Rhode Islanders to give special
H08 1450  1    attention to this unusual event which should contribute
H08 1450  9    to the cultural life of the State.
H08 1460  5       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 1470  4    and caused the seal of the State to be affixed this
H08 1480  1    23d day of October, in the year of Our Lord, one thousand
H08 1480 13    nine hundred and sixty-one, and of Independence, the
H08 1490  8    one hundred and eighty-sixth.
H08 1500  1       Governor
H08 1510  1    #PROCLAMATION THANKSGIVING DAY BY JOHN A& NOTTE, JR&
H08 1510  9    GOVERNOR#
H08 1510 10    As another Thanksgiving draws near, let us take time
H08 1520  9    out from the often hectic pace of our lives to try
H08 1530  8    and recapture the feelings that filled the hearts of
H08 1540  4    the Pilgrims on the first Thanksgiving.
H08 1550  1       The Pilgrims gathered to thank the Lord for His
H08 1550  9    benevolence during their first year in the new land.
H08 1560  8    They had been through trying times, but their faith
H08 1570  4    in the Almighty had given them the courage and the
H08 1570 14    strength to meet and overcome the many problems and
H08 1580  9    difficulties that were the price they had to pay for
H08 1590  8    freedom. And as the Pilgrims bowed their heads in humble
H08 1600  5    gratitude, they shared another feeling- the anticipation
H08 1610  1    of what the future held for them and their posterity.
H08 1610 11    They could not guess that from their concepts of liberty
H08 1620 10    and freedom would some day be born a new nation that
H08 1630  9    for years would be the symbol of hope to the oppressed
H08 1640  5    countries of the world. They simply turned to God filled
H08 1650  2    with gratitude and faith.
H08 1650  6       We who are living today may learn a valuable lesson
H08 1660  5    from those who celebrated the first Thanksgiving Day.
H08 1670  2    The Lord has shown time and time again His love for
H08 1670 13    us. We have only to compare the liberty and high standard
H08 1680 11    of living we enjoy in this great country with the oppression
H08 1690  9    and frugality of other nations to realize with humble
H08 1700  6    gratitude that God's Providence has been with us since
H08 1710  5    the very beginning of our country. And yet, accompanying
H08 1720  1    our gratitude is the realization that we are living
H08 1720 10    in a crucial time. With world peace constantly being
H08 1730  7    threatened, most of us regard the future skeptically,
H08 1740  4    and even with fear. It is at this time that we should
H08 1750  3    imitate the Pilgrims by accompanying our prayers of
H08 1750 11    thanks with the conviction that we shall continue to
H08 1760  9    be in dire need for the Lord's protection in the future,
H08 1770  7    if we are to have peace; NOW, THEREFORE, DO I, JOHN
H08 1780  5    A& NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE ISLAND
H08 1790  3    AND PROVIDENCE PLANTATIONS, PROCLAIM THURSDAY, NOVEMBER
H08 1800  1    23RD, 1961, AS THANKSGIVING DAY,
H08 1800  6       And so, let us remember on this day not only to
H08 1810  6    thank the Almighty Who gave hope and courage to the
H08 1820  3    Pilgrims, but also to place our trust in Him that He
H08 1820 14    will continue to protect us in the future as He has
H08 1830 10    in the past.
H08 1830 13       IN TESTIMONY WHEREOF, I have hereunto set my hand
H08 1840  9    and caused the seal of the State to be affixed this
H08 1850  8    21st day of November, in the year of Our Lord, one
H08 1860  5    thousand nine hundred and sixty-one and of Independence,
H08 1870  1    the one hundred and eighty-sixth. John A& Notte Jr&
H08 1870 11       Governor
H09 0010  1       Be it enacted by the Senate and House of Representatives
H09 0020  1    of the United States of America in Congress assembled,
H09 0020 10    That the Act of July 3, 1952 (66 Stat& 328) as amended
H09 0030 11    (42 U&S&C& 1952-1958), is further amended to read as
H09 0040  9    follows:
H09 0050  1    _SECTION 1._
H09 0050  1       In view of the increasing shortage of usable surface
H09 0050 10    and ground water in many parts of the Nation and the
H09 0060  9    importance of finding new sources of supply to meet
H09 0070  5    its present and future water needs, it is the policy
H09 0080  1    of the Congress to provide for the development of practicable
H09 0080 11    low-cost means for the large-scale production of water
H09 0090  9    of a quality suitable for municipal, industrial, agricultural,
H09 0100  5    and other beneficial consumptive uses from saline water,
H09 0110  5    and for studies and research related thereto. As used
H09 0120  4    in this Act, the term 'saline water' includes sea water,
H09 0130  2    brackish water, and other mineralized or chemically
H09 0130  9    charged water, and the term 'United States' extends
H09 0140  8    to and includes the District of Columbia, the Commonwealth
H09 0150  6    of Puerto Rico, and the territories and possessions
H09 0160  3    of the United States.
H09 0160  7    _SEC& 2._
H09 0160  9       In order to accomplish the purposes of this Act,
H09 0170  9    the Secretary of the Interior shall-
H09 0180  1    _(A)_
H09 0180  2       conduct, encourage, and promote fundamental scientific
H09 0190  2    research and basic studies to develop the best and
H09 0190 11    most economical processes and methods for converting
H09 0200  6    saline water into water suitable for beneficial consumptive
H09 0210  5    purposes;
H09 0210  6    _(B)_
H09 0210  7       conduct engineering research and technical development
H09 0220  5    work to determine, by laboratory and pilot plant testing,
H09 0230  5    the results of the research and studies aforesaid in
H09 0240  3    order to develop processes and plant designs to the
H09 0240 12    point where they can be demonstrated on a large and
H09 0250 10    practical scale;
H09 0260  1    _(C)_
H09 0260  1       recommend to the Congress from time to time authorization
H09 0260 10    for construction and operation, or for participation
H09 0270  7    in the construction and operation, of a demonstration
H09 0280  6    plant for any process which he determines, on the basis
H09 0290  4    of subsections (~a) and (~b) above, has great promise
H09 0300  3    of accomplishing the purposes of this Act, such recommendation
H09 0310  1    to be accompanied by a report on the size, location,
H09 0310 11    and cost of the proposed plant and the engineering
H09 0320  8    and economic details with respect thereto;
H09 0330  3    _(D)_
H09 0330  4       study methods for the recovery and marketing of
H09 0340  2    commercially valuable byproducts resulting from the
H09 0340  8    conversion of saline water; and
H09 0350  5    _(E)_
H09 0350  6       undertake economic studies and surveys to determine
H09 0360  3    present and prospective costs of producing water for
H09 0360 11    beneficial consumptive purposes in various parts of
H09 0370  7    the United States by the leading saline water processes
H09 0380  7    as compared with other standard methods.
H09 0390  2    _SEC& 3._
H09 0390  4       In carrying out his functions under section 2 of
H09 0400  3    this Act, the Secretary may-
H09 0400  8    _(A)_
H09 0400  9       acquire the services of chemists, physicists, engineers,
H09 0410  4    and other personnel by contract or otherwise;
H09 0420  2    _(B)_
H09 0420  3       enter into contracts with educational institutions,
H09 0430  1    scientific organizations, and industrial and engineering
H09 0430  7    firms;
H09 0440  1    _(C)_
H09 0440  2       make research and training grants;
H09 0440  7    _(D)_
H09 0440  8       utilize the facilities of Federal scientific laboratories;
H09 0450  6    _(E)_
H09 0450  7       establish and operate necessary facilities and test
H09 0460  7    sites at which to carry on the continuous research,
H09 0470  3    testing, development, and programing necessary to effectuate
H09 0480  3    the purposes of this Act;
H09 0480  8    _(F)_
H09 0480  9       acquire secret processes, technical data, inventions,
H09 0500  4    patent applications, patents, licenses, land and interests
H09 0510  4    in land (including water rights), plants and facilities,
H09 0520  2    and other property or rights by purchase, license,
H09 0520 10    lease, or donation;
H09 0530  3    _(G)_
H09 0530  4       assemble and maintain pertinent and current scientific
H09 0540  2    literature, both domestic and foreign, and issue bibliographical
H09 0550  1    data with respect thereto;
H09 0550  5    _(H)_
H09 0550  6       cause on-site inspections to be made of promising
H09 0560  6    projects, domestic and foreign, and, in the case of
H09 0570  2    projects located in the United States, cooperate and
H09 0570 10    participate in their development in instances in which
H09 0580  8    the purposes of this Act will be served thereby;
H09 0590  5    _(I)_
H09 0590  6       foster and participate in regional, national, and
H09 0600  3    international conferences relating to saline water
H09 0600  9    conversion;
H09 0610  1    _(J)_
H09 0610  2       coordinate, correlate, and publish information with
H09 0620  2    a view to advancing the development of low-cost saline
H09 0620 12    water conversion projects; and
H09 0630  3    _(K)_
H09 0630  4       cooperate with other Federal departments and agencies,
H09 0640  3    with State and local departments, agencies, and
H09 0640 10    instrumentalities,
H09 0650  1    and with interested persons, firms, institutions, and
H09 0660  1    organizations.
H09 0660  2    _SEC& 4. (A)_
H09 0660  5       Research and development activities undertaken by
H09 0670  3    the Secretary shall be coordinated or conducted jointly
H09 0680  1    with the Department of Defense to the end that developments
H09 0680 11    under this Act which are primarily of a civil nature
H09 0690 10    will contribute to the defense of the Nation and that
H09 0700  7    developments which are primarily of a military nature
H09 0710  4    will, to the greatest practicable extent compatible
H09 0720  1    with military and security requirements, be available
H09 0720  8    to advance the purposes of this Act and to strengthen
H09 0730  8    the civil economy of the Nation. The fullest cooperation
H09 0740  4    by and with Atomic Energy Commission, the Department
H09 0750  3    of Health, Education, and Welfare, the Department of
H09 0760  2    State, and other concerned agencies shall also be carried
H09 0760 11    out in the interest of achieving the objectives of
H09 0770  7    this Act.
H09 0770  9    _(B)_
H09 0770 10       All research within the United States contracted
H09 0780  6    for, sponsored, cosponsored, or authorized under authority
H09 0790  5    of this Act, shall be provided for in such manner that
H09 0800  5    all information, uses, products, processes, patents,
H09 0810  1    and other developments resulting from such research
H09 0810  8    developed by Government expenditure will (with such
H09 0820  5    exceptions and limitations, if any, as the Secretary
H09 0830  5    may find to be necessary in the interest of national
H09 0840  1    defense) be available to the general public. This subsection
H09 0840 10    shall not be so construed as to deprive the owner of
H09 0850 11    any background patent relating thereto of such rights
H09 0860  6    as he may have thereunder.
H09 0870  1    _SEC& 5. (A)_
H09 0870  3       The Secretary may dispose of water and byproducts
H09 0870 11    resulting from his operations under this Act. All moneys
H09 0880  9    received from dispositions under this section shall
H09 0890  5    be paid into the Treasury as miscellaneous receipts)
H09 0900  2    _(B)_
H09 0900  3       Nothing in the Act shall be construed to alter existing
H09 0910  3    law with respect to the ownership and control of water.
H09 0920  1    _SEC& 6._
H09 0920  3       The Secretary shall make reports to the President
H09 0930  1    and the Congress at the beginning of each regular session
H09 0930 11    of the action taken or instituted by him under the
H09 0940  8    provisions of this Act and of prospective action during
H09 0950  5    the ensuing year.
H09 0950  8    _SEC& 7._
H09 0950 10       The Secretary of the Interior may issue rules and
H09 0960  8    regulations to effectuate the purposes of this Act.
H09 0970  6    _SEC& 8._
H09 0970  8       There are authorized to be appropriated such sums,
H09 0980  5    to remain available until expended, as may be necessary,
H09 0990  3    but not more than $75,000,000 in all, (a) to carry
H09 0990 13    out the provisions of this Act during the fiscal years
H09 1000 10    1962 to 1967, inclusive; (b) to finance, for not more
H09 1010  7    than two years beyond the end of said period, such
H09 1020  4    grants, contracts, cooperative agreements, and studies
H09 1030  1    as may theretofore have been undertaken pursuant to
H09 1030  9    this Act; and (c) to finance, for not more than three
H09 1040  9    years beyond the end of said period, such activities
H09 1050  4    as are required to correlate, coordinate, and round
H09 1060  2    out the results of studies and research undertaken
H09 1060 10    pursuant to this Act: Provided, That funds available
H09 1070  7    in any one year for research and development may, subject
H09 1080  6    to the approval of the Secretary of State to assure
H09 1090  5    that such activities are consistent with the foreign
H09 1100  1    policy objectives of the United States, be expended
H09 1100  9    in cooperation with public or private agencies in foreign
H09 1110  8    countries in the development of processes useful to
H09 1120  5    the program in the United States: And provided further,
H09 1130  3    That every such contract or agreement made with any
H09 1140  2    public or private agency in a foreign country shall
H09 1140 11    contain provisions effective to insure that the results
H09 1150  7    or information developed in connection therewith shall
H09 1160  5    be available without cost to the United States for
H09 1170  3    the use of the United States throughout the world and
H09 1180  1    for the use of the general public within the United
H09 1180 11    States.
H09 1190  1    _SEC& 2._
H09 1190  3       Section 4 of the joint resolution of September 2,
H09 1190 12    1958 (72 Stat& 1707; 42 U& S& C& 1958 (~d)), is hereby
H09 1210  1    amended to read:
H09 1220  3       The authority of the Secretary of the Interior under
H09 1230  1    this joint resolution to construct, operate, and maintain
H09 1230  9    demonstration plants shall terminate upon the expiration
H09 1240  7    of twelve years after the date on which this joint
H09 1250  7    resolution is approved. Upon the expiration of a period
H09 1260  4    deemed adequate for demonstration purposes for each
H09 1270  1    plant, but not to exceed such twelve-year period, the
H09 1270 11    Secretary shall proceed as promptly as practicable
H09 1280  6    to dispose of any plants so constructed by sale to
H09 1290  4    the highest bidder, or as may otherwise be directed
H09 1290 13    by Act of Congress. Upon such sale, there shall be
H09 1300 10    returned to any State or public agency which has contributed
H09 1310  7    financial assistance under section 3 of this joint
H09 1320  6    resolution a proper share of the net proceeds of the
H09 1330  3    sale.
H09 1330  4       Approved September 22, 1961.
H09 1340  1       Be it enacted by the Senate and House of Representatives
H09 1350  1    of the United States of America in Congress assembled,
H09 1350 10    That the Secretary of the Interior is hereby authorized
H09 1360  8    and directed to make or cause to be made a study covering-
H09 1370  9    _(1)_
H09 1370 10       the causes of injuries and health hazards in metal
H09 1380  6    and nonmetallic mines (excluding coal and lignite mines);
H09 1390  4    _(2)_
H09 1390  5       the relative effectiveness of voluntary versus mandatory
H09 1400  3    reporting of accident statistics;
H09 1400  7    _(3)_
H09 1400  8       the relative contribution to safety of inspection
H09 1410  7    programs embodying-
H09 1420  1    _(A)_
H09 1420  1       right-of-entry only and
H09 1420  6    _(B)_
H09 1420  7       right-of-entry plus enforcement authority;
H09 1430  2    _(4)_
H09 1430  3       the effectiveness of health and safety education
H09 1440  1    and training;
H09 1440  3    _(5)_
H09 1440  4       the magnitude of effort and costs of each of these
H09 1450  3    possible phases of an effective safety program for
H09 1450 11    metal and nonmetallic mines (excluding coal and lignite
H09 1460  8    mines); and
H09 1470  1    _(6)_
H09 1470  1       the scope and adequacy of State mine-safety laws
H09 1470 10    applicable to such mines and the enforcement of such
H09 1480  7    laws.
H09 1480  8    _SEC& 2. (A)_
H09 1480 11       The Secretary of the Interior or any duly authorized
H09 1490  8    representative shall be entitled to admission to, and
H09 1500  7    to require reports from the operator of, any metal
H09 1510  4    or nonmetallic mine which is in a State (excluding
H09 1510 13    any coal or lignite mine), the products of which regularly
H09 1520 10    enter commerce or the operations of which substantially
H09 1530  7    affect commerce, for the purpose of gathering data
H09 1540  4    and information necessary for the study authorized
H09 1550  1    in the first section of this Act.
H09 1550  8    _(B)_
H09 1550  9       As used in this section-
H09 1560  3    _(1)_
H09 1560  4       the term "State" includes the Commonwealth of Puerto
H09 1570  1    Rico and any possession of the United States; and
H09 1570 10    _(2)_
H09 1580  1       the term "commerce" means commerce between any State
H09 1580  8    and any place outside thereof, or between points within
H09 1590  7    the same State but through any place outside thereof.
H09 1600  5    _SEC& 3._
H09 1600  7       The Secretary of the Interior shall submit a report
H09 1610  5    of his findings, together with recommendations for
H09 1620  2    an effective safety program for metal and nonmetallic
H09 1620 10    mines (excluding coal and lignite mines) based upon
H09 1630  8    such findings, to the Congress not more than two years
H09 1640  7    after the date of enactment of this Act.
H09 1650  2       Approved September 26, 1961.
H09 1660  1       Be it enacted by the Senate and House of Representatives
H09 1670  1    of the United States of America in Congress assembled,
H09 1670 10    That the Secretary of the Interior is hereby authorized
H09 1680  8    and directed to establish and maintain a program of
H09 1690  6    stabilization payments to small domestic producers
H09 1700  2    of lead and zinc ores and concentrates in order to
H09 1700 12    stabilize the mining of lead and zinc by small domestic
H09 1710 10    producers on public, Indian, and other lands as provided
H09 1720  7    in this Act.
H09 1730  1    _SEC& 2. (A)_
H09 1730  1       Subject to the limitations of this Act, the Secretary
H09 1730 10    shall make stabilization payments to small domestic
H09 1740  6    producers upon presentation of evidence satisfactory
H09 1750  3    to him of their status as such producers and of the
H09 1760  2    sale by them of newly mined ores, or concentrates produced
H09 1760 12    therefrom, as provided in this Act. Payments shall
H09 1770  8    be made only with respect to the metal content as determined
H09 1780  7    by assay.
H09 1780  9    _(B)_
H09 1780 10       Such payments shall be made to small domestic producers
H09 1790  8    of lead as long as the market price for common lead
H09 1800  5    at New York, New York, as determined by the Secretary,
H09 1810  3    is below 14-1/2 cents per pound, and such payments
H09 1810 13    shall be 75 per centum of the difference between 14-1/2
H09 1820 11    cents per pound and the average market price for the
H09 1830  8    month in which the sale occurred as determined by the
H09 1840  5    Secretary.
H09 1840  6    _(C)_
H09 1840  7       Such payments shall be made to small domestic producers
H09 1850  5    of zinc as long as the market price for prime western
H09 1860  3    zinc at East Saint Louis, Illinois, as determined by
H09 1870  1    the Secretary, is below 14-1/2 cents per pound, and
H09 1870 11    such payments shall be 55 per centum of the difference
H09 1880  8    between 14-1/2 cents per pound and the average market
H09 1890  5    price for the month in which the sale occurred as determined
H09 1900  3    by the Secretary.
H09 1900  6    _(D)_
H09 1900  7       The maximum amount of payments which may be made
H09 1910  5    pursuant to this Act on account of sales of newly mined
H09 1920  2    ores or concentrates produced therefrom made during
H09 1920  9    the calendar year 1962 shall not exceed $4,500,000;
H09 1930  7    the maximum amount of such payments which may be made
H09 1940  6    on account of such sales made during the calendar year
H09 1950  3    1963 shall not exceed $4,500,000; the maximum amount
H09 1960  1    of such payments which may be made on account of such
H09 1960 12    sales made during the calendar year 1964 shall not
H09 1970  7    exceed $4,000,000; and the maximum amount of such payments
H09 1980  5    which may be made on account of such sales made during
H09 1990  3    the calendar year 1965 shall not exceed $3,500,000.
H10 0010  1    In the same period, 431 presentations by members of
H10 0010 10    the staff were made to local, national, and international
H10 0020  6    medical groups.
H10 0030  1    _3. EDUCATION:_
H10 0030  1       _A._
H10 0030  2       The education function of the Institute is carried
H10 0040  1    on by the staff in the departments of pathology and
H10 0040 11    its consultants. During fiscal year 1959, six courses
H10 0050  7    were conducted: Forensic Pathology, Application of
H10 0060  3    Histochemistry to Pathology, Pathology of Diseases
H10 0070  1    of Laboratory Animals, Opthalmic Pathology, Pathology
H10 0070  7    of the Oral Regions, and a Cardiovasculatory Pathology
H10 0080  8    Seminar. During fiscal year 1960, seven courses were
H10 0090  7    conducted: Application of Histochemistry to Pathology,
H10 0100  4    Forensic Pathology, Pathology of Diseases of Laboratory
H10 0110  3    Animals, Pathology of the Oral Regions, Opthalmic Pathology,
H10 0120  2    Forensic Sciences Symposium, and Orthopedic Pathology.
H10 0130  1    From 1 July 1960 through 31 January 1961, six courses
H10 0130 11    were conducted: Workshop in Resident Training in Pathology,
H10 0140  8    Pathology of Diseases of Laboratory Animals, Application
H10 0150  7    of Histochemistry of Pathology, Orthopedic Pathology,
H10 0160  5    Forensic Sciences Symposium, and Forensic Pathology.
H10 0170  4    _B._
H10 0170  5       During fiscal years 1959 and 1960, there were 139
H10 0180  5    military and civilian students who came to the Institute
H10 0190  1    for varying periods of special instruction.
H10 0200  1    _4. RESEARCH:_
H10 0200  1       The Institute is engaged in an extensive program
H10 0200  9    of medico-military scientific research in both morphological
H10 0210  6    and experimental pathology. Among the specific areas
H10 0220  5    of concentration in which the staff is engaged, are
H10 0230  2    such projects as biological and biochemical studies
H10 0230  9    of the effects of microwaves; study of motor end plates
H10 0240  9    in man and animals; investigation of respiratory diseases
H10 0260  5    of laboratory animals; metabolic responses to reduced
H10 0270  4    oxygen tension; neuropathology of nuclear and cosmic
H10 0280  3    radiation; carcinoma of prostate; evaluation of histochemical
H10 0290  1    techniques; and hip dysplasia in dogs. There has been
H10 0290 10    an increase in cooperative research with other Federal
H10 0300  8    agencies and civilian institutions.
H10 0310  2       During the period from 1 July 1960 through 31 January
H10 0320  3    1961, additional research affiliations were effected
H10 0320  9    with the U& S& Army Medical Research and Development
H10 0330  9    Command to conduct research in procedures for quantitative
H10 0340  7    electron microscopy, and for the study of biophysical
H10 0350  6    and biological studies of the structure and function
H10 0360  3    of ocular tissue. Also, the Defense Atomic Support
H10 0370  1    Agency sponsored a long-range study at this Institute
H10 0370 10    on the response of massive suspension cultures of mammalian
H10 0380  7    cells to acute radiation. Other scientific agencies,
H10 0390  4    both Federal and civilian, supported studies in quantitative
H10 0400  3    electron microscopical approach to microchemistry and
H10 0410  2    microcytochemistry; the investigation of the relationship
H10 0410  8    of diphosphopyridine nucleotide synthesizine enzyme
H10 0420  4    to tumor growth; morphological study and classification
H10 0430  4    of leukemia and lymphoma cases in animals; and the
H10 0440  4    study of structural changes in M& leprae and other
H10 0450  1    mycobacteria.
H10 0450  2    _MEDICAL ILLUSTRATION SERVICE_
H10 0450  5       _1._
H10 0450  6       The Medical Illustration Service is responsible
H10 0460  5    for the collection, publication, exhibition, and file
H10 0470  4    of medical illustration material of medico-military
H10 0480  1    importance to the Armed Forces. In addition to maintaining
H10 0490  1    a permanent central file of illustrations of diseases,
H10 0490  9    wounds, and injuries of military importance, it provides
H10 0500  6    facilities for clinical photography, photomicrography,
H10 0510  2    and medical arts, and operates a printing plant, by
H10 0520  3    permission of Congressional Committee, for publication
H10 0520  9    of an "Atlas of Tumor Pathology". It also maintains
H10 0530  9    shops for the design and fabrication of exhibits, training
H10 0540  7    aids and instruments and libraries for the loan of
H10 0550  6    films and teaching lantern slide sets.
H10 0560  1    _2._
H10 0560  1       During this period, a total of 762 exhibits were
H10 0560 10    presented at 442 medical and scientific meetings. Of
H10 0570  6    these exhibits, 154 were newly constructed. Twenty-nine
H10 0580  4    exhibits received awards.
H10 0580  7    _3._
H10 0580  8       Visual and operable training aids developed by the
H10 0590  7    Medical Illustration Service, were used in support
H10 0600  5    of Army Medical Service mass casualty exercises. Members
H10 0610  2    of the Medical Illustration Service lectured and conducted
H10 0620  2    demonstrations on the use of training aids to military
H10 0620 11    personnel and various civilian medical organizations.
H10 0630  6    Demonstrations of new and projected training aids were
H10 0640  6    conducted at the Medical Service Instructor's Conference,
H10 0650  3    Brooke Army Medical Center, Texas.
H10 0660  1    _4._
H10 0660  1       In support of the emphasis placed by the Department
H10 0660 10    of Defense on instruction in emergency medical care,
H10 0670  7    the Medical Illustration Service developed casualty
H10 0680  4    simulation kits and rescue breathing manikins which
H10 0690  2    are being field tested; and overhead projector transparency
H10 0700  1    sets on the subjects of Military Sanitation: First
H10 0700  9    Aid for Soldiers; Bandaging and Splinting; the Emergency
H10 0710  7    Medical Treatment Unit, Phase /1,; and Emergency War
H10 0720  7    Surgery in support of the North Atlantic Treaty Organization
H10 0730  7    (~NATO) Handbook. Fifty lantern slide teaching sets
H10 0740  6    on the subject of "Emergency War Surgery (~NATO)" were
H10 0750  4    assembled and distributed to the Medical Military Services
H10 0760  3    of foreign Governments associated with ~NATO and South-East
H10 0770  4    Asia Treaty Organization. The British and Canadian
H10 0780  2    Liaison Officers, as well as Office of Civil and Defense
H10 0790  1    Mobilization, the American Red Cross, and similar interested
H10 0790  9    organizations were informed from time to time as training
H10 0800  9    aids were developed.
H10 0810  1    _5._
H10 0810  2       Nine veterinary lantern slide teaching sets were
H10 0810  9    developed and distributed, and lantern slide teaching
H10 0820  7    sets on 21 pathology subjects were added to the loan
H10 0830  7    library of the Medical Illustration Service. Illustrations
H10 0840  3    were prepared for 11 Department of the Army manuals
H10 0850  2    and one Graphic Training Aid. Sixteen lantern slide
H10 0850 10    sets were loaned to the Government of India and eight
H10 0860 10    sets were forwarded to the U&S& Embassy, Managua, Nicaragua
H10 0870  7    for the Educational Exchange Program. The Senate Subcommittee
H10 0880  6    on Reorganization and International Organizations was
H10 0890  4    provided samples of visual aids on first aid and personal
H10 0900  5    health produced by the Medical Illustration Service.
H10 0910  2    _6._
H10 0910  3       Six fascicles (10,000 copies each) of the "Atlas
H10 0920  1    of Tumor Pathology" were completed during the period
H10 0920  9    of this report.
H10 0930  1    _THE AMERICAN REGISTRY OF PATHOLOGY_
H10 0930  6       This consists of 25 individual registries, two of
H10 0940  4    which were added during fiscal years 1959-1960 (the
H10 0950  2    Registry of Forensic Pathology and the Testicular Tumor
H10 0960  1    Registry). These registries are sponsored by 18 national
H10 0960  9    medical, dental, and veterinary societies and have
H10 0970  7    as their mission the assembling of selected cases of
H10 0980  5    interest to military medicine and of establishing through
H10 0990  2    the mechanism of follow-up of living patients the natural
H10 1000  1    history of various diseases of military-medical importance.
H10 1000  9    The American Registry of Pathology operates as a cooperative
H10 1010  8    enterprise in medical research and education between
H10 1020  6    the Armed Forces Institute of Pathology and the civilian
H10 1030  5    medical profession on a national and international
H10 1040  1    basis, under such conditions as may be agreed upon
H10 1040 10    between the National Research Council and The Surgeons
H10 1050  8    General of the Army, Navy, and Air Force. The staff
H10 1060  7    utilized the collected material in these registries
H10 1070  4    for numerous lectures to national and international
H10 1080  1    meetings, exhibits, and published studies. During the
H10 1080  8    period of this report, 37,470 new cases were entered
H10 1090  7    into the various registries. These were selected carefully
H10 1100  5    and included not only detailed clinical information
H10 1110  2    but adequate pathology of value for research and educational
H10 1120  1    purposes.
H10 1120  2       In this same period, six new fascicles of the Atlas
H10 1130  1    of Tumor Pathology were published and distributed to
H10 1130  9    medical centers world-wide. There were 54,320 copies
H10 1140  7    of fascicles sold and 642 copies distributed free during
H10 1150  5    this period. Forty-five new Clinico-pathologic Conferences
H10 1160  2    were prepared, bringing the total to 61 available for
H10 1170  2    loan distribution. Nine new teaching Clinico-pathologic
H10 1170  9    Conference sets were prepared, which makes a total
H10 1180  8    of 70 types of teaching sets for loan. During this
H10 1190  6    period, 7,827 teaching sets were distributed on loan.
H10 1200  3    The Clinico-pathologic Conferences have been acknowledged
H10 1210  1    as of great value and in consequent great demand by
H10 1210 11    the small isolated military hospitals. The demand for
H10 1220  6    teaching sets continues unabated since they provide
H10 1230  4    the means for the military physicians to review the
H10 1240  2    pathology of selected disease processes or organ systems
H10 1240 10    for review of basic sciences and correlation of clinical
H10 1250  8    physiological behavior with structural changes.
H10 1260  4    _THE MEDICAL MUSEUM_
H10 1260  7       In fiscal year 1959, the Medical Museum was moved
H10 1270  6    to Chase Hall, a temporary building on Independence
H10 1280  3    Avenue at Ninth Street, Southwest, and continued to
H10 1290  2    display to the public the achievements of the Armed
H10 1290 11    Forces Medical Services. During the period of this
H10 1300  7    report, 63 panel exhibits depicting the latest developments
H10 1310  5    in medical research were displayed. Of the 375 exhibits
H10 1320  5    (of all types) shown, 161 were new or refurbished.
H10 1330  1    Of the 885 specimens newly mounted or refurbished,
H10 1330  9    254 were prepared for other agencies. Eighty-five specimens
H10 1340  7    were loaned for study purposes. An exhibit, "Macropathology-
H10 1350  5    An Ancient Art, A new Science", was presented at the
H10 1360  6    annual meeting of the American Medical Association.
H10 1370  2       A three-dimensional exhibit depicting "A Century
H10 1380  2    of Naval Medicine" was formally presented to The Director
H10 1390  1    by George S& Squibb, great-grandson of the founder
H10 1390 10    of E& R& Squibb and Sons, for permanent display in
H10 1400  9    the Museum.
H10 1410  1       Space was provided for short-time guest medical
H10 1410  9    exhibits, and the Museum collected new accessions of
H10 1420  6    microscopes, medical, surgical, and diagnostic instruments,
H10 1430  3    uniform, and similar items of historical medico-military
H10 1450  1    significance.
H10 1450  2       During the period, the laboratory rendered centralized
H10 1460  2    macropathological service to qualified requesters.
H10 1470  1    Specimens were mounted for military installations,
H10 1470  7    governmental agencies, and medical schools.
H10 1480  4       Three hundred five copies of the Manual of Macropathological
H10 1490  3    Techniques were distributed. Thirty-five military and
H10 1500  3    civilian students received laboratory training.
H10 1510  1       During fiscal years 1959 and 1960, there were 795,586
H10 1510 10    visitors to the Museum.
H10 1520  2       During the period from 1 July 1960 through 31 January
H10 1540  1    1961, the Medical Museum was required to move to Temporary
H10 1540 11    Building "~S" on the Mall from Chase Hall. Throughout
H10 1550  9    the period and during the movement operation, the Museum
H10 1560  8    continued its functional support of the Armed Forces
H10 1570  6    Institute of Pathology.
H10 1570  9    #ARMED FORCES MEDICAL PUBLICATION AGENCY#
H10 1580  4    The Armed Forces Medical Publication Agency, established
H10 1590  3    in 1949, has published, since January 1950, the United
H10 1600  3    States Armed Forces Medical Journal as a triservice
H10 1605  1    publication to furnish material of professional interest
H10 1610  7    to Medical Department officers of the three military
H10 1620  6    services. Its supplement, the Medical Technicians Bulletin,
H10 1630  3    supplied similar material to enlisted medical personnel.
H10 1640  3    These publications replaced the U& S& Naval Medical
H10 1650  2    Bulletin, published continuously from 1907 through
H10 1650  8    1959, as well as the Navy's Hospital Corps Quarterly
H10 1660  8    and the Bulletin of the U& S& Army Medical Department,
H10 1670  7    published from 1922 to 1949. In addition, their establishment
H10 1680  5    made it unnecessary to begin publication of a contemplated
H10 1690  4    Air Force medical bulletin. Estimated annual savings
H10 1700  2    resulting from publication of the Journal and Bulletin
H10 1710  1    on a triservice basis, as compared with the cost of
H10 1710 11    producing separate periodicals for each service, were
H10 1720  6    between $65,000 and $70,000. Additionally, on the many
H10 1730  4    ships at sea and in the smaller naval stations, the
H10 1740  2    availability of the Journal removed the necessity of
H10 1740 10    subscribing to several additional journals of civilian
H10 1750  7    origin over and above the quantity now authorized,
H10 1760  4    in order to provide any reasonably comparable coverage.
H10 1770  2       From 1 July 1958 to 30 June 1960, 24 numbers of
H10 1780  1    the Journal and nine of the Bulletin were published.
H10 1790  9    Each Journal contained articles of professional and
H10 1800  5    clinical interest, and departments devoted to military
H10 1810  4    medical news, reviews of new books, and other features
H10 1820  1    of interest to officers of the medical services. The
H10 1820 10    Council on National Defense of the American Medical
H10 1830  8    Association contributed a brief article to each issue
H10 1840  7    entitled, "This is Your A&M&A&".
H10 1850  1       Beginning with the October 1959 issue of the Journal,
H10 1860  1    the method of production of copy for photo-offset reproduction
H10 1860 11    was changed from varityping to hot typesetting. This
H10 1870  8    resulted in an improved appearance, but was followed
H10 1880  5    by an increase in printing cost that necessitated the
H10 1890  3    institution of major economies to keep within the total
H10 1900  1    of allocated funds. The use of 100 instead of 140 substance
H10 1900 12    paper plus the adoption of side stapling beginning
H10 1910  8    with the May 1960 issue reduced costs sufficiently
H10 1920  4    to allow completion of the fiscal year with nearly
H10 1930  2    $4,000 in unexpended funds.
H10 1930  6       Two special issues were published, one for November
H10 1940  5    1959 on Space Medicine, the other the Tenth Anniversary
H10 1950  3    issue for January 1960. The February 1960 issue marked
H10 1960  2    the reinstitution of the section entitled, "The Medical
H10 1960 10    Officer Writes". Replacing the discontinued Medical
H10 1970  6    Technicians Bulletin, publication of which was suspended
H10 1980  6    with the November-December 1959 issue, a section called
H10 1990  6    "Technical Notes" was inaugurated on a bimonthly basis
H10 2000  5    beginning with the April 1960 issue. Occasional features
H10 2010  2    were published on historical medicine, special reports,
H10 2010  9    bibliography, and "Collector's Items". In May 1960,
H10 2020  7    the Armed Forces Institute of Pathology began a series
H10 2030  8    of articles on the "Medical Museum", and in June, the
H10 2040  6    Institute started contributing a regular monthly "Case
H10 2050  5    for Diagnosis". The Institute also planned to furnish
H10 2060  3    a regular series of articles, beginning in the fall
H10 2070  1    of 1960, on its more significant Scientific Exhibits.
H10 2070  9       The Armed Forces Epidemiological Board agreed to
H10 2080  6    submit each month a report for one of its 12 commissions,
H10 2090  7    so that each commission will report once a year on
H10 2100  5    some phase of its work calculated to be of particular
H10 2100 15    interest and value to medical officers of the Armed
H10 2110  9    Forces. The first report in this continuing series
H10 2120  6    appeared in the September 1960 issue of the Journal.
H11 0010  1    Another recent achievement was the successful development
H11 0010  8    of a method for the complete combustion in a bomb calorimeter
H11 0020  9    of a metal in fluorine when the product is relatively
H11 0030  6    non-volatile. This work gave a heat of formation of
H11 0040  4    aluminum fluoride which closely substantiates a value
H11 0050  1    which had been determined by a less direct method,
H11 0050 10    and raises this property to 15 percent above that accepted
H11 0060  8    a few years ago. Similar measurements are being initiated
H11 0070  4    to resolve a large discrepancy in the heat of formation
H11 0080  4    of another important combustion product, beryllium
H11 0080 10    fluoride.
H11 0090  1       The development and testing of new apparatus to
H11 0090  9    measure other properties is nearing completion. In
H11 0100  7    one of these, an exploding-wire device to study systems
H11 0110  5    thermodynamically up to 6,000 **f and 100 atmospheres
H11 0120  3    pressure, a major goal was achieved. The accuracy of
H11 0130  1    measuring the total electrical energy entering an exploding
H11 0130  9    wire during a few microseconds was verified when two
H11 0140  8    independent types of comparison with the heat energy
H11 0150  5    produced had an uncertainty of less than 2 percent.
H11 0160  2    This agreement is considered very good for such short
H11 0160 11    time intervals. The method of calibration employs a
H11 0170  7    fixed resistance element as a calorimeter. The element
H11 0180  6    is inserted in the discharge circuit in place of the
H11 0190  9    exploding wire, and the calorimetric heating of the
H11 0200  7    element is measured with high accuracy. This is used
H11 0210  4    as a reference for comparing the ohmic heating and
H11 0220  1    the electrical energy obtained from the measured current
H11 0220  9    through the element and the measured voltage across
H11 0230  7    the element.
H11 0230  9       A high-speed shutter has been developed in order
H11 0240  7    to permit photographic observation of any portion of
H11 0250  5    the electrical wire explosion. The shutter consists
H11 0260  1    of two parts: a fast-opening part and a fast-closing
H11 0260 12    part. Using Edgerton's method, the fast-closing action
H11 0270  7    is obtained from the blackening of a window by exploding
H11 0280  7    a series of parallel lead wires. The fast-opening of
H11 0290  5    the shutter consists of a piece of aluminum foil (approximately
H11 0300  2    **f) placed directly in front of the camera lens so
H11 0300 12    that no light may pass into the camera. The opening
H11 0310 10    action is obtained when a capacitor, charged to high
H11 0320  7    voltage, is suddenly discharged through the foil. During
H11 0330  4    the discharge the magnetic forces set up by the passage
H11 0340  2    of current cause the edges of the foil to roll inward
H11 0340 13    toward its center line, thus allowing light to pass
H11 0350  9    into the camera. Experiments have shown that the shutter
H11 0360  6    is 75 percent open in about 60-80 microseconds. The
H11 0370  2    shutter aperture may be made larger or smaller by changing
H11 0380  1    the foil area and adjusting the electrical energy input
H11 0380 10    to the foil.
H11 0390  1    _LABORATORY MEASUREMENTS OF INTERSTELLAR RADIO SPECTRA._
H11 0390  7       Besides the well-known hydrogen line at 21 ~cm wavelength,
H11 0400 10    the spectra of extraterrestrial radio sources may contain
H11 0410  6    sharp lines characteristic of other atoms, ions, and
H11 0420  6    small molecules. The detection and study of such line
H11 0430  4    spectra would add considerably to present information
H11 0430 11    on interstellar gas clouds and, perhaps, planetary
H11 0440  7    atmospheres. Among the most likely producers of detectable
H11 0450  6    radio line spectra are the light diatomic hydrides
H11 0460  3    ~OH and ~CH; somewhat less likely sources are the heavier
H11 0470  4    hydrides ~SH, ~SiH, and ~ScH. Very small concentrations
H11 0480  2    of these hydrides should be detectable; in interstellar
H11 0490  1    gas, concentrations as low as **f molecules/**f may
H11 0490  9    be sufficient, as compared to the **f hydrogen atoms
H11 0500  8    **f required for detection of the 21-~cm line.
H11 0510  5       High sensitivity in radio telescopes is achieved
H11 0520  1    by reducing the bandwidth of the receiver; therefore,
H11 0520  9    only with precise foreknowledge of the line frequencies
H11 0530  7    is an astronomical search for the radio spectra of
H11 0540  7    these molecules feasible. To secure precise measurements
H11 0550  2    of these frequencies, a research program in free radical
H11 0560  1    microwave spectroscopy has been started. Since conventional
H11 0560  8    methods are insensitive at the low frequencies of these
H11 0570  9    molecular transitions, the paramagnetic resonance method
H11 0580  5    is being used instead. This involves the application
H11 0590  4    of a strong magnetic field to the radical vapor, which
H11 0600  2    shifts the low-frequency spectra to a conveniently
H11 0600 10    high microwave range, where they may be measured with
H11 0610  8    optimum sensitivity.
H11 0620  1       The first diatomic hydride investigated by the paramagnetic
H11 0620  9    resonance method was the ~OH radical. Results of this
H11 0630  9    experiment include the frequencies of the two strong
H11 0640  7    spectral lines by which ~OH may be identified in interstellar
H11 0650  5    gas; the frequencies are 1665.32 and 1667.36 **f, with
H11 0660  4    an uncertainty of 0.10 **f. Success in observing these
H11 0670  1    spectral lines has so far, apparently, been confined
H11 0670  9    to the laboratory; extraterrestrial observations have
H11 0680  4    yet to be reported. Preparations are being made for
H11 0690  5    similar experiments on ~CH and ~SH radicals.
H11 0700  2    _LOW TEMPERATURE THERMOMETRY._
H11 0700  5       The Bureau is pursuing an active program to provide
H11 0710  6    a temperature scale and thermometer calibration services
H11 0720  2    in the range 1.5 to 20 **f. The efforts and accomplishments
H11 0730  1    fall into three main categories: absolute thermometry
H11 0730  8    based upon the velocity of sound in helium gas, secondary
H11 0740 10    thermometry involving principally studies of the behavior
H11 0750  6    of germanium resistors, and helium-4 vapor-pressure
H11 0760  3    measurements (see p& 144).
H11 0770  1    _ACOUSTICAL INTERFEROMETER._
H11 0770  1       An acoustical interferometer has been constructed
H11 0770  7    and used, with helium gas as the thermometric fluid,
H11 0780  9    to measure temperatures near 4.2 and 2.1 **f. Such
H11 0790  7    an interferometer provides a means of absolute temperature
H11 0800  2    measurement, and may be used as an alternative to the
H11 0810  2    gas thermometer. When values of temperature derived
H11 0810  9    with this instrument were compared with the accepted
H11 0820  6    values associated with liquid helium-4 vapor pressures,
H11 0830  5    differences of about 10 and 7 millidegrees respectively
H11 0840  1    were found. This result is preliminary, and work is
H11 0840 10    continuing.
H11 0850  1    _RESISTANCE THERMOMETERS._
H11 0850  3       Carbon resistors and impurity-doped germanium resistors
H11 0860  3    have been investigated for use as precision secondary
H11 0870  1    thermometers in the liquid helium temperature region.
H11 0870  8    Several germanium resistors have been thermally cycled
H11 0880  7    from 300 to 4.2 **f and their resistances have been
H11 0890  5    found to be reproducible within 1/3 millidegree when
H11 0900  2    temperatures were derived from a vapor pressure thermometer
H11 0910  1    whose tubing is jacketed through most of the liquid
H11 0910 10    helium. Preliminary calibrations of the resistors have
H11 0920  6    been made from 4.21 to 2.16 **f at every 0.1 **f. The
H11 0930  7    estimated standard deviations of the data for two of
H11 0940  3    the resistors were @ 1 millidegree; and for the third
H11 0940 13    resistor, @ 3.3 millidegrees.
H11 0950  4    _VAPOR PRESSURE METHOD._
H11 0950  7       The reproducibilities of helium vapor-pressure thermometers
H11 0960  6    have been investigated in conjunction with a "constant
H11 0970  6    temperature" liquid helium bath from 4.2 to 1.8 **f.
H11 0980  6    Surface temperature gradients have been found to exist
H11 0990  2    in liquid helium baths contained in 15-and 25-liter
H11 0990 12    metallic storage dewars. The gradient was about one
H11 1000  7    half of a millidegree at 4.2 **f but increased to several
H11 1010  6    millidegrees for bath temperatures slightly greater
H11 1020  2    than the ~|l point. A hydrostatic head correction has
H11 1030  1    been neither necessary nor applicable in the determination
H11 1030  9    of vapor pressures or temperatures for the bulk liquid
H11 1040  7    helium. However, the surface temperature gradient can
H11 1050  4    produce erroneous vapor-pressure measurements for the
H11 1060  3    bulk liquid helium unless precautions are taken to
H11 1060 11    isolate the tube (which passes through the surface
H11 1070  8    to the vapor pressure bulb) from the liquid helium
H11 1080  5    surface. It has also been observed, in helium /2,,
H11 1090  2    that large discrepancies can exist between surface
H11 1090  9    vapor pressures and those pressures measured by a vapor
H11 1100  8    pressure thermometer. This has been attributed to helium
H11 1110  6    film flow in the vapor pressure thermometer. In this
H11 1120  3    case also the design of the thermometer can be modified
H11 1130  1    to reduce the helium film flow.
H11 1140  1    _PRESSURE TRANSDUCER FOR ~PVT MEASUREMENTS._
H11 1140  2       Precise pressure-volume-temperature measurements
H11 1140  7    on corrosive gases are dependent on a sensitive yet
H11 1150  9    rugged pressure transducer. A prototype which fulfills
H11 1160  5    the requirements was developed and thoroughly tested.
H11 1170  3    The transducer is a null-type instrument and employs
H11 1180  1    a stretched diaphragm, 0.001 in& thick and 1 in& in
H11 1180 11    diameter. A small pressure unbalance displaces the
H11 1190  7    diaphragm and changes the capacitance between the diaphragm
H11 1200  4    and an electrically insulated plate spaced 0.001 in&
H11 1210  3    apart (for **f). Spherical concave backing surfaces
H11 1220  1    support the diaphragm when excessive pressures are
H11 1220  8    applied and prevent the stresses within the diaphragm
H11 1230  6    from exceeding the elastic limit. Over a temperature
H11 1240  4    range from 25 to 200 **f and at pressures up to 250
H11 1250  2    ~atm, an overload of 300 ~psi, applied for a period
H11 1250 12    of one day, results in an uncertainty in the pressure
H11 1260  8    of, at most, one millimeter of mercury.
H11 1270  3    _TRANSPORT PROPERTIES OF AIR._
H11 1270  7       A 6-year study of the transport properties of air
H11 1280  5    at elevated temperatures has been completed. This project
H11 1290  3    was carried out under sponsorship of the Ballistic
H11 1300  1    Missile Division of the Air Research and Development
H11 1300  9    Command, U&S& Air Force, and had as its goal the investigation
H11 1310 10    of the transport by diffusion of the heat energy of
H11 1320  8    chemical binding. A significant effect discovered during
H11 1330  4    the study is the existence of Prandtl numbers reaching
H11 1340  3    values of more than unity in the nitrogen dissociation
H11 1350  1    region. Another effect discovered is the large coefficient
H11 1350  9    of thermal diffusion tending to separate nitrogen from
H11 1360  7    the oxygen when temperature differences straddling
H11 1370  3    the nitrogen dissociation region are present. The results
H11 1380  3    of the study, based on collision integrals computed
H11 1380 11    from the latest critically evaluated data on intermolecular
H11 1390  8    forces in air, will be reported in the form of a table
H11 1400 10    of viscosity, thermal conductivity, thermal diffusion,
H11 1410  3    and diffusion coefficients at temperatures of 1,000
H11 1420  3    to 10,000 **f and of logarithm of pressure in atmospheres
H11 1420 13    from **f to **f times normal density.
H11 1440  1    _INTERNATIONAL COOPERATIVE ACTIVITIES._
H11 1440  1       In March, 1961, representatives of the national
H11 1440  8    laboratories of Australia, Canada, The Netherlands,
H11 1450  6    United Kingdom, U&S&S&R&, United States, and West Germany,
H11 1460  6    met at the ~NBS to devise means for reaching international
H11 1470  7    agreement on a temperature scale between 10 and 90
H11 1480  6    **f. As a first step toward this goal, arrangements
H11 1490  2    were worked out for comparing the scales now in use
H11 1490 12    through circulation of a group of standard platinum
H11 1500  8    resistance thermometers for calibration by each national
H11 1510  6    laboratory. Such a group of thermometers was obtained
H11 1520  3    and calibrated at the ~NBS. These thermometers have
H11 1530  2    now been sent to the United Kingdom for calibration
H11 1530 11    at the National Physical Laboratory.
H11 1540  3    _TEMPERATURE SYMPOSIUM._
H11 1540  5       During the last week of march 1961, Columbus, Ohio
H11 1550  8    was the site of the Fourth Symposium on Temperature,
H11 1560  4    Its Measurement and Control in Science and Industry.
H11 1570  3    The Symposium, which was jointly sponsored by the American
H11 1580  2    Institute of Physics, the Instrument Society of America,
H11 1590  1    and the National Bureau of Standards, attracted nearly
H11 1590  9    one thousand registrants, including many from abroad.
H11 1600  6    The Bureau contributed to the planning and success
H11 1610  6    of the Symposium through the efforts of Mr& W& A& Wildhack,
H11 1620  4    General Chairman, and Dr& C& M& Herzfeld, Program Chairman.
H11 1630  4    Dr& A& V& Astin, ~NBS Director, opened the 5-day session
H11 1640  7    with introductory remarks, following which a total
H11 1650  4    of twenty-six papers were given throughout the week
H11 1660  1    by ~NBS scientists, from both the Washington and Boulder
H11 1660 10    Laboratories.
H11 1670  1    #2.1.6. ATOMIC PHYSICS#
H11 1670  4    In addition to the basic programs in wavelength standards,
H11 1680  4    spectroscopy, solid state physics, interactions of
H11 1690  2    the free electron and atomic constants which are necessary
H11 1690 11    to provide the foundation for technological progress,
H11 1700  7    the Bureau has strengthened its activities in laboratory
H11 1710  5    astrophysics. The programs in infrared spectroscopy
H11 1720  3    are undergoing reorientation toward wavelength standards
H11 1730  1    in the far infrared, the application of infrared techniques
H11 1730 10    to solid state studies, and increased emphasis on high
H11 1740  9    resolution instrumentation. Two data centers have been
H11 1750  6    established for the collection, indexing, critical
H11 1760  3    evaluation, and dissemination of bibliographies and
H11 1770  1    critical values in the fields of transition probabilities
H11 1770  9    and collision cross sections.
H11 1780  3    _LABORATORY ASTROPHYSICS._
H11 1790  1       _TRANSITION PROBABILITIES._
H11 1790  1       Under the sponsorship of the Office of Naval Research
H11 1800  1    and the Advanced Research Projects Agency, a data center
H11 1800 10    was established to gather and index all published information
H11 1810  8    on atomic transition probabilities. An exhaustive survey
H11 1820  5    was made of the literature, and a primary reference
H11 1830  5    file of approximately 600 references was catalogued.
H11 1840  1    Selected bibliographies and tables of available data
H11 1840  8    are now in preparation.
H11 1850  3       A wall-stabilized high-current arc source was constructed
H11 1860  2    and used to study transition probabilities of atomic
H11 1860 10    hydrogen and oxygen. This apparatus will also be used
H11 1870  9    to measure transition probabilities of a large number
H11 1880  6    of other elements. A study of the hydrogen line profiles
H11 1900  3    indicates that a measurement of these profiles can
H11 1910  1    be used to calculate a temperature for the arc plasma
H11 1910 11    that is reliable to about **f percent.
H11 1920  5       A set of tables containing spectral intensities
H11 1930  1    for 39,000 lines of 70 elements, as observed in a copper
H11 1930 12    matrix in a ~d-c arc, was completed and published.
H11 1940 10    Studies of the intensity data indicate that they may
H11 1950  6    be converted to approximate transition probabilities.
H11 1960  2    These data are not of the precision obtainable by the
H11 1970  2    methods previously mentioned, but the vast number of
H11 1970 10    approximate values available will be useful in many
H11 1980  7    areas.
H11 1990  1    _ATOMIC ENERGY LEVELS._
H11 1990  1       Research continues on the very complex spectra of
H11 1990  9    the rare earth elements. New computer and automation
H11 2000  6    techniques were applied to these spectra with considerable
H11 2010  4    success.
H12 0010  1    _(E)_
H12 0010  2       In addition to the penalties provided in title 18,
H12 0010 11    United States Code, section 1001, any person guilty
H12 0020  8    of any act, as provided therein, with respect to any
H12 0030  6    matter under this Title, shall forfeit all rights under
H12 0040  4    this Title, and, if payment shall have been made or
H12 0050  1    granted, the Commission shall take such action as may
H12 0050 10    be necessary to recover the same.
H12 0060  4    _(F)_
H12 0060  5       In connection with any claim decided by the Commission
H12 0070  3    pursuant to this Title in which an award is made, the
H12 0080  1    Commission may, upon the written request of the claimant
H12 0080 10    or any attorney heretofore or hereafter employed by
H12 0090  6    such claimant, determine and apportion the just and
H12 0100  5    reasonable attorney's fees for services rendered with
H12 0110  2    respect to such claim, but the total amount of the
H12 0110 12    fees so determined in any case shall not exceed 10
H12 0120  8    per centum of the total amount paid pursuant to the
H12 0130  5    award. Written evidence that the claimant and any such
H12 0140  3    attorney have agreed to the amount of the attorney's
H12 0140 12    fees shall be conclusive upon the Commission: Provided,
H12 0150  8    however, That the total amount of the fees so agreed
H12 0160  9    upon does not exceed 10 per centum of the total amount
H12 0170  6    paid pursuant to the award. Any fee so determined shall
H12 0180  2    be entered as a part of such award, and payment thereof
H12 0190  1    shall be made by the Secretary of the Treasury by deducting
H12 0190 12    the amount thereof from the total amount paid pursuant
H12 0200  8    to the award. Any agreement to the contrary shall be
H12 0210  6    unlawful and void. The Commission is authorized and
H12 0220  3    directed to mail to each claimant in proceedings before
H12 0230  1    the Commission notice of the provisions of this subsection.
H12 0230 10    Whoever, in the United States or elsewhere, pays or
H12 0240  9    offers to pay, or promises to pay, or receives on account
H12 0250  7    of services rendered or to be rendered in connection
H12 0260  3    with any such claim, compensation which, when added
H12 0270  1    to any amount previously paid on account of such services,
H12 0270 11    will exceed the amount of fees so determined by the
H12 0280  9    Commission, shall be guilty of a misdemeanor, and,
H12 0290  5    upon conviction thereof, shall be fined not more than
H12 0300  2    $5,000 or imprisoned not more than twelve months, or
H12 0300 11    both, and if any such payment shall have been made
H12 0310  9    or granted, the Commission shall take such action as
H12 0320  6    may be necessary to recover the same, and, in addition
H12 0330  2    thereto, any such person shall forfeit all rights under
H12 0330 11    this title.
H12 0340  2    _(G)_
H12 0340  3       The Attorney General shall assign such officers
H12 0350  1    and employees of the Department of Justice as may be
H12 0350 11    necessary to represent the United States as to any
H12 0360  7    claims of the Government of the United States with
H12 0370  4    respect to which the Commission has jurisdiction under
H12 0380  2    this title. Any and all payments required to be made
H12 0380 12    by the Secretary of the Treasury under this title pursuant
H12 0390  9    to any award made by the Commission to the Government
H12 0400  7    of the United States shall be covered into the Treasury
H12 0410  5    to the credit of miscellaneous receipts.
H12 0420  1    _(H)_
H12 0420  2       The Commission shall notify all claimants of the
H12 0420 10    approval or denial of their claims, stating the reasons
H12 0430  9    and grounds therefor, and if approved, shall notify
H12 0440  5    such claimants of the amount for which such claims
H12 0450  2    are approved. Any claimant whose claim is denied, or
H12 0450 11    is approved for less than the full amount of such claim,
H12 0460 10    shall be entitled, under such regulations as the Commission
H12 0470  7    may prescribe, to a hearing before the Commission,
H12 0480  4    or its duly authorized representatives, with respect
H12 0490  2    to such claim. Upon such hearing, the Commission may
H12 0490 11    affirm, modify, or revise its former action with respect
H12 0500  9    to such claim, including a denial or reduction in the
H12 0510  7    amount theretofore allowed with respect to such claim.
H12 0520  4    The action of the Commission in allowing or denying
H12 0530  1    any claim under this title shall be final and conclusive
H12 0530 11    on all questions of law and fact and not subject to
H12 0540  9    review by the Secretary of State or any other official,
H12 0550  6    department, agency, or establishment of the United
H12 0560  3    States or by any court by mandamus or otherwise.
H12 0570  1    _(I)_
H12 0570  1       The Commission may in its discretion enter an award
H12 0570 10    with respect to one or more items deemed to have been
H12 0580 10    clearly established in an individual claim while deferring
H12 0590  4    consideration and action on other items of the same
H12 0600  4    claim.
H12 0600  5    _(J)_
H12 0600  6       The Commission shall comply with the provisons of
H12 0610  2    the Administrative Procedure Act of 1946 except as
H12 0610 10    otherwise specifically provided by this title.
H12 0620  6    _SEC& 5._
H12 0620  8       The Commission shall, as soon as possible, and in
H12 0630  8    the order of the making of such awards, certify to
H12 0640  4    the Secretary of the Treasury and to the Secretary
H12 0650  1    of State copies of the awards made in favor of the
H12 0650 12    Government of the United States or of nationals of
H12 0660  9    the United States under this Title. The Commission
H12 0670  4    shall certify to the Secretary of State, upon his request,
H12 0680  4    copies of the formal submissions of claims filed pursuant
H12 0690  1    to subsection (~b) of section 4 of this Act for transmission
H12 0700  1    to the foreign government concerned.
H12 0710  5    _SEC& 6._
H12 0710  7       The Commission shall complete its affairs in connection
H12 0720  6    with settlement of United States-Yugoslav claims arising
H12 0730  3    under the Yugoslav Claims Agreement of 1948 not later
H12 0740  4    than December 31, 1954: Provided, That nothing in this
H12 0750  3    provision shall be construed to limit the life of the
H12 0750 13    Commission, or its authority to act on future agreements
H12 0760  9    which may be effected under the provisions of this
H12 0770  6    legislation.
H12 0770  7    _SEC& 7. (A)_
H12 0770 10       Subject to the limitations hereinafter provided,
H12 0780  6    the Secretary of the Treasury is authorized and directed
H12 0790  5    to pay, as prescribed by section 8 of this Title, an
H12 0800  5    amount not exceeding the principal of each award, plus
H12 0810  1    accrued interests on such awards as bear interest,
H12 0810  9    certified pursuant to section 5 of this Title, in accordance
H12 0820  9    with the award. Such payments, and applications for
H12 0830  4    such payments, shall be made in accordance with such
H12 0840  3    regulations as the Secretary of the Treasury may prescribe.
H12 0850  1    _(B)_
H12 0850  2       There shall be deducted from the amount of each
H12 0850 11    payment made pursuant to subsection (~c) of section
H12 0860  8    8, as reimbursement for the expenses incurred by the
H12 0880  5    United States, an amount equal to 5 per centum of such
H12 0890  4    payment. All amounts so deducted shall be covered into
H12 0900  1    the Treasury to the credit of miscellaneous receipts.
H12 0900  9    _(C)_
H12 0900 10       Payments made pursuant to this Title shall be made
H12 0910  9    only to the person or persons on behalf of whom the
H12 0920  7    award is made, except that-
H12 0920 12    _(1)_
H12 0930  1       if such person is deceased or is under a legal disability,
H12 0930 11    payment shall be made to his legal representative:
H12 0940  7    Provided, That if the total award is not over $500
H12 0950  7    and there is no qualified executor or administrator,
H12 0960  1    payment may be made to the person or persons found
H12 0960 11    by the Comptroller General of the United States to
H12 0970  8    be entitled thereto, without the necessity of compliance
H12 0980  6    with the requirements of law with respect to the administration
H12 0990  5    of estates;
H12 0990  7    _(2)_
H12 0990  8       in the case of a partnership or corporation, the
H12 1000  6    existence of which has been terminated and on behalf
H12 1010  4    of which an award is made, payment shall be made, except
H12 1020  1    as provided in paragraphs (3) and (4), to the person
H12 1020 11    or persons found by the Comptroller General of the
H12 1030  7    United States to be entitled thereto;
H12 1040  2    _(3)_
H12 1040  3       if a receiver or trustee for any such partnership
H12 1050  1    or corporation has been duly appointed by a court of
H12 1050 11    competent jurisdiction in the United States and has
H12 1060  7    not been discharged prior to the date of payment, payment
H12 1070  5    shall be made to such receiver or trustee in accordance
H12 1080  3    with the order of the court;
H12 1080  9    _(4)_
H12 1080 10       if a receiver or trustee for any such partnership
H12 1090  6    or corporation, duly appointed by a court of competent
H12 1100  4    jurisdiction in the United States, makes an assignment
H12 1110  1    of the claim, or any part thereof, with respect to
H12 1110 11    which an award is made, or makes an assignment of such
H12 1120  9    award, or any part thereof, payment shall be made to
H12 1130  6    the assignee, as his interest may appear; and
H12 1135  2    _(5)_
H12 1140  1       in the case of any assignment of an award, or any
H12 1140 12    part thereof, which is made in writing and duly acknowledged
H12 1150  9    and filed, after such award is certified to the Secretary
H12 1160  7    of the Treasury, payment may, in the discretion of
H12 1170  4    the Secretary of the Treasury, be made to the assignee,
H12 1180  1    as his interest may appear.
H12 1180  6    _(D)_
H12 1180  7       Whenever the Secretary of the Treasury, or the Comptroller
H12 1190  7    General of the United States, as the case may be, shall
H12 1200  7    find that any person is entitled to any such payment,
H12 1210  2    after such payment shall have been received by such
H12 1210 11    person, it shall be an absolute bar to recovery by
H12 1220 10    any other person against the United States, its officers,
H12 1230  6    agents, or employees with respect to such payment.
H12 1240  4    _(E)_
H12 1240  5       Any person who makes application for any such payment
H12 1250  2    shall be held to have consented to all the provisions
H12 1250 12    of this Title.
H12 1260  2    _(F)_
H12 1260  3       Nothing in the Title shall be construed as the assumption
H12 1270  2    of any liability by the United States for the payment
H12 1270 12    or satisfaction, in whole or in part, of any claim
H12 1280 10    on behalf of any national of the United States against
H12 1290  6    any foreign government.
H12 1300  1    _SEC& 8. (A)_
H12 1300  3       There are hereby created in the Treasury of the
H12 1300 12    United States (1) a special fund to be known as the
H12 1310 10    Yugoslav Claims Fund; and (2) such other special funds
H12 1320  7    as may, in the discretion of the Secretary of the Treasury,
H12 1330  4    be required each to be a claims fund to be known by
H12 1340  2    the name of the foreign government which has entered
H12 1340 11    into a settlement agreement with the Government of
H12 1350  6    the United States as described in subsection (~a) of
H12 1370  2    section 4 of this Title. There shall be covered into
H12 1380  2    the Treasury to the credit of the proper special fund
H12 1380 12    all funds hereinafter specified. All payments authorized
H12 1390  6    under section 7 of this Title shall be disbursed from
H12 1400  6    the proper fund, as the case may be, and all amounts
H12 1410  4    covered into the Treasury to the credit of the aforesaid
H12 1420  1    funds are hereby permanently appropriated for the making
H12 1420  9    of the payments authorized by section 7 of this Title.
H12 1430  9    _(B)_
H12 1430 10       The Secretary of the Treasury is authorized and
H12 1440  7    directed to cover into-
H12 1450  1    _(1)_
H12 1450  1       the Yugoslav Claims Fund the sum of $17,000,000
H12 1450  9    being the amount paid by the Government of the Federal
H12 1460  8    People's Republic of Yugoslavia pursuant to the Yugoslav
H12 1470  6    Claims Agreement of 1948;
H12 1480  1    _(2)_
H12 1480  1       a special fund created for that purpose pursuant
H12 1480  9    to subsection (~a) of this section any amounts hereafter
H12 1500  7    paid, in United States dollars, by a foreign government
H12 1510  5    which has entered into a claims settlement agreement
H12 1520  2    with the Government of the United States as described
H12 1520 11    in subsection (~a) of section 4 of this Title.
H12 1540  7    _(C)_
H12 1540  8       The Secretary of the Treasury is authorized and
H12 1550  7    directed out of the sums covered into any of the funds
H12 1560  5    pursuant to subsection (~b) of this section, and after
H12 1580  1    making the deduction provided for in section 7 (~b)
H12 1580 10    of this Title-
H12 1600  1    _(1)_
H12 1600  2       to make payments in full of the principal of awards
H12 1600 12    of $1,000 or less, certified pursuant to section 5
H12 1610  8    of this Title;
H12 1620  1    _(2)_
H12 1620  1       to make payments of $1,000 on the principal of each
H12 1620 11    award of more than $1,000 in principal amount, certified
H12 1625  7    pursuant to section 5 of this Title;
H12 1630  7    _(3)_
H12 1630  8       to make additional payment of not to exceed 25 per
H12 1640  7    centum of the unpaid principal of awards in the principal
H12 1650  2    amount of more than $1,000;
H12 1650  7    _(4)_
H12 1650  8       after completing the payments prescribed by paragraphs
H12 1660  5    (2) and (3) of this subsection, to make payments, from
H12 1670  4    time to time in ratable proportions, on account of
H12 1680  2    the unpaid principal of all awards in the principal
H12 1680 11    amount of more than $1,000, according to the proportions
H12 1690  7    which the unpaid principal of such awards bear to the
H12 1700  6    total amount in the fund available for distribution
H12 1710  1    at the time such payments are made; and
H12 1710  9    _(5)_
H12 1710 10       after payment has been made of the principal amounts
H12 1720  8    of all such awards, to make pro rata payments on account
H12 1730  6    of accrued interest on such awards as bear interest.
H12 1740  2    _(D)_
H12 1740  3       The Secretary of the Treasury, upon the concurrence
H12 1750  1    of the Secretary of State, is authorized and directed,
H12 1750 10    out of the sum covered into the Yugoslav Claims Fund
H12 1760  9    pursuant to subsection (~b) of this section, after
H12 1780  5    completing the payments of such funds pursuant to subsection
H12 1790  3    (~c) of this section, to make payment of the balance
H12 1810  1    of any sum remaining in such fund to the Government
H12 1810 11    of the Federal People's Republic of Yugoslavia to the
H12 1820  7    extent required under article 1 (~c) of the Yugoslav
H12 1830  6    Claims Agreement of 1948. The Secretary of State shall
H12 1840  4    certify to the Secretary of the Treasury the total
H12 1850  2    cost of adjudication, not borne by the claimants, attributable
H12 1860  1    to the Yugoslav Claims Agreement of 1948. Such certification
H12 1860 10    shall be final and conclusive and shall not be subject
H12 1870 10    to review by any other official or department, agency,
H12 1880  5    or establishment of the United States.
H12 1890  1    _SEC& 9._
H12 1890  3       There is hereby authorized to be appropriated, out
H12 1900  2    of any money in the Treasury not otherwise appropriated,
H12 1900 11    such sums as may be necessary to enable the Commission
H12 1910  9    to carry out its functions under this Title.
H13 0010  1    _MR& DOOLEY._
H13 0010  3       Mr& Speaker, for several years now the commuter
H13 0020  1    railroads serving our large metropolitan areas have
H13 0020  8    found it increasingly difficult to render the kind
H13 0030  6    of service our expanding population wants and is entitled
H13 0040  5    to have. The causes of the decline of the commuter
H13 0050  1    railroads are many and complex- high taxes, losses
H13 0050  9    of revenue to Government subsidized highway and air
H13 0060  6    carriers, to name but two. And the solutions to the
H13 0070  5    problems of the commuter lines have been equally varied,
H13 0080  2    ranging all the way from Government ownership to complete
H13 0090  1    discontinuance of this important service.
H13 0090  6       There have been a number of sound plans proposed.
H13 0100  5    But none of these has been implemented. Instead we
H13 0110  3    have stood idly by, watched our commuter railroad service
H13 0120  1    decline, and have failed to offer a helping hand. Though
H13 0120 11    the number of people flowing in and out of our metropolitan
H13 0130 10    areas each day has increased tremendously since World
H13 0140  4    War /2,, total annual rail commutation dropped 124
H13 0150  3    million from 1947 to 1957. Nowhere has this decline
H13 0160  1    been more painfully evident than in the New York City
H13 0160 11    area. Here the New York Central Railroad, one of the
H13 0170  8    Nation's most important carriers, has alone lost 47.6
H13 0180  6    percent of its passengers since 1949.
H13 0190  1       At this time of crisis in our Nation's commuter
H13 0190 10    railroads, a new threat to the continued operations
H13 0200  8    of the New York Central has appeared in the form of
H13 0210  6    the Chesapeake + Ohio Railroad's proposal for control
H13 0220  3    of the Baltimore + Ohio railroads.
H13 0220  9       The New York Central has pointed out that this control,
H13 0230  8    if approved by the Interstate Commerce Commission,
H13 0240  3    would give the combined C& + O&-B& + O& Railroad a
H13 0250  5    total of 185 points served in common with the New York
H13 0260  3    Central. Not only is this kind of duplication wasteful,
H13 0270  1    but it gives the combined system the ability to take
H13 0270 11    freight traffic away from the New York Central and
H13 0280  8    other railroads serving the area.
H13 0290  1       The New York Central notes: "
H13 0290  6       The freight traffic most susceptible to raiding
H13 0300  5    by the C& + O&-B& + O& provides the backbone of Central's
H13 0310  5    revenues. These revenues make it possible to provide
H13 0320  4    essential freight and passenger service over the entire
H13 0330  1    New York Central system as well as the New York area
H13 0330 12    commuter and terminal freight services. If these services
H13 0340  8    are to be maintained, the New York Central must have
H13 0350  7    the revenues to make them possible".
H13 0360  1       The New York Central today handles 60 percent of
H13 0360 10    all southbound commuter traffic coming into New York
H13 0370  8    City. This is a $14 million operation involving 3,500
H13 0380  6    employees who work on commuter traffic exclusively.
H13 0390  3    A blow to this phase of the Central's operations would
H13 0400  2    have serious economic consequences not only to the
H13 0400 10    railroad itself, but to the 40,000 people per day who
H13 0410 10    are provided with efficient, reasonably priced transportation
H13 0420  4    in and out of the city. "
H13 0430  1       There is a workable alternative to this potentially
H13 0430  8    dangerous and harmful C& + O&-B& + O& merger scheme"-
H13 0440  9       The Central has pointed out. "
H13 0450  4       The logic of creating a strong, balanced, competitive
H13 0460  2    two-system railroad service in the East is so obvious
H13 0470  1    that B& + O& was publicly committed to the approach
H13 0470 11    outlined here.
H13 0480  1       Detailed studies of the plan were well underway.
H13 0480  9    Though far from completion, these studies indicated
H13 0490  7    beyond a doubt that savings would result which would
H13 0500  5    be of unprecedented benefit to the railroads concerned,
H13 0510  2    their investors, their customers, their users, and
H13 0510  9    to the public at large.
H13 0520  4       Then, abandoning the studies in the face of their
H13 0530  2    promising outlook for all concerned, B& + O& entered
H13 0530 11    on-again-off-again negotiations with C& + O& which
H13 0540  7    resulted in the present situation.
H13 0550  2       In the light of the facts at hand, however, New
H13 0560  2    York Central intends to pursue the objective of helping
H13 0560 11    to create a healthy two-system eastern railroad structure
H13 0570  8    in the public interest".
H13 0580  1       The Interstate Commerce Commission will commence
H13 0580  7    its deliberations on the proposed C& + O&-B& + O& merger
H13 0590 12    on June 18. Obviously, the Interstate Commerce Commission
H13 0600  8    will not force the New York Central to further curtail
H13 0610  8    its commuter operations by giving undue competitive
H13 0620  5    advantages to the lines that wish to merge.
H13 0630  1       However, there is a more profound consideration
H13 0630  8    to this proposed merger than profit and loss. That
H13 0640  7    is, will it serve the long-range public interest?
H13 0650  3       For the past 40 years Congress has advocated a carefully
H13 0660  3    planned, balanced and competitive railway system. We
H13 0670  2    must ask ourselves which of the two alternatives will
H13 0670 11    help the commuter- the two-way B& + O&-C& + O& merger,
H13 0680 13    or the three-way New York Central-B& + O&-C& + O& merger.
H13 0690 11    Which will serve not only the best interest of the
H13 0700  9    stockholders, but the interests of all the traveling
H13 0710  5    public?
H13 0720  1    _MR& LINDSAY._
H13 0720  3       Mr& Speaker, I rise today to pay tribute to a great
H13 0730  3    newspaper, the New York Times, on the occasion of a
H13 0730 13    major change in its top executive command.
H13 0740  6       Arthur Hays Sulzberger has been a distinguished
H13 0750  4    publisher of this distinguished newspaper and it is
H13 0760  3    fitting that we take due notice of his major contribution
H13 0760 13    to American journalism on the occasion of his retirement.
H13 0770  8    I am pleased to note that Mr& Sulzberger will continue
H13 0780  7    to serve as chairman of the board of the New York Times.
H13 0790  7       Mr& Sulzberger's successor as publisher is Mr& Orvil
H13 0800  6    E& Dryfoos, who is president of the New York Times
H13 0810  4    Co&, and who has been with the Times since 1942. Mr&
H13 0820  2    Dryfoos' outstanding career as a journalist guarantees
H13 0820  9    that the high standards which have made the Times one
H13 0830 10    of the world's great newspapers will be maintained.
H13 0840  6       I am also pleased to note that Mr& John B& Oakes,
H13 0850  6    a member of the Times staff since 1946, has been appointed
H13 0860  4    as editorial page editor. Mr& Oakes succeeds Charles
H13 0870  2    Merz, editor since 1938, who now becomes editor emeritus.
H13 0880  1       I should like at this time, Mr& Speaker, to pay
H13 0880 11    warm tribute to Arthur Hays Sulzberger and Charles
H13 0890  7    Merz on the occasion of their retirement from distinguished
H13 0900  5    careers in American journalism.
H13 0910  1       My heartiest congratulations go to their successors,
H13 0910  8    Orvil E& Dryfoos and John B& Oakes, who can be counted
H13 0920 10    upon to sustain the illustrious tradition of the New
H13 0930  7    York Times.
H13 0930  9       The people of the 17th District of New York, and
H13 0940  9    I as their Representative in Congress, take great pride
H13 0950  6    in the New York Times as one of the great and authoritative
H13 0960  4    newspapers of the world.
H13 0970  1    _MR& STRATTON._
H13 0970  3       Mr& Speaker, in my latest newsletter to my constituents
H13 0980  1    I urged the imposition of a naval blockade of Cuba
H13 0980 11    as the only effective method of preventing continued
H13 0990  7    Soviet armaments from coming into the Western Hemisphere
H13 1000  6    in violation of the Monroe Doctrine. Yesterday, I had
H13 1010  4    the privilege of reading a thoughtful article in the
H13 1020  3    U&S& News + World Report of May 8 which discussed this
H13 1030  1    type of action in more detail, including both its advantages
H13 1030 11    and its disadvantages.
H13 1040  2       Under leave to extend my remarks, I include the
H13 1050  2    relevant portion of my newsletter, together with the
H13 1050 10    text of the article from the U&S& News + World Report:
H13 1060  9    "
H13 1070  1    _YOUR CONGRESSMAN, SAMUEL S& STRATTON, REPORTS FROM
H13 1070  6    WASHINGTON, MAY 1, 1961_
H13 1080  1       Cuban S&S&R&: Whatever may have been the setbacks
H13 1080  9    resulting from the unsuccessful attempt of the Cuban
H13 1090  8    rebels to establish a beachhead on the Castro-held
H13 1100  7    mainland last week, there was at least one positive
H13 1110  3    benefit, and that was the clear-cut revelation to the
H13 1120  1    whole world of the complete conversion of Cuba into
H13 1120 10    a Russian-dominated military base.
H13 1130  3       In fact, one of the major reasons for the failure
H13 1140  2    of the ill-starred expedition appears to have been
H13 1140 11    a lack of full information on the extent to which Cuba
H13 1150  8    has been getting this Russian military equipment. Somehow,
H13 1160  4    the pictures and stories of Soviet ~T-34 tanks on Cuban
H13 1170  6    beaches and Russian Mig jet fighters strafing rebel
H13 1180  2    troops has brought home to all of us the stark, blunt
H13 1180 13    truth of what it means to have a Russian military base
H13 1190 11    90 miles away from home. Russian tanks and planes in
H13 1200  7    Cuba jeopardize the security of the United States,
H13 1210  4    violate the Monroe Doctrine, and threaten the security
H13 1220  2    of every other Latin American republic.
H13 1220  8       Once the full extent of this Russian military penetration
H13 1230  7    of Cuba was clear, President Kennedy announced we would
H13 1240  5    take whatever action was appropriate to prevent this,
H13 1250  4    even if we had to go it alone. But the Latin American
H13 1260  1    republics who have been rather inclined to drag their
H13 1260 10    feet on taking action against Castro also reacted swiftly
H13 1270  8    last week by finally throwing Cuba off the Inter-American
H13 1280  7    Defense Board. For years the United States had been
H13 1290  6    trying to get these countries to exclude Castro's representative
H13 1300  3    from secret military talks. But it took the pictures
H13 1310  2    of the Migs and the ~T-34 tanks to do the job. There
H13 1320  1    is a new atmosphere of urgency in Washington this week.
H13 1320 11    You can see it, for example, in the extensive efforts
H13 1330  8    President Kennedy has made to enlist solid bipartisan
H13 1340  5    support for his actions toward both Cuba and Laos;
H13 1345  3    efforts, as I see it, which are being directed, by
H13 1350 10    the way, toward support for future actions, not for
H13 1360  7    those already past.
H13 1360 10       What the next move will be only time, of course,
H13 1370 10    will tell. Personally, I think we ought to set up an
H13 1380  9    immediate naval blockade of Cuba. We simply can't tolerate
H13 1390  4    further Russian weapons, including the possibility
H13 1400  1    of long-range nuclear missiles, being located in Cuba.
H13 1400 10    Obviously, we can't stop them from coming in, however,
H13 1410  9    just by talk. A naval blockade would be thoroughly
H13 1420  5    in line with the Monroe Doctrine, would be a relatively
H13 1430  4    simple operation to carry out, and would bring an abrupt
H13 1440  2    end to Soviet penetration of our hemisphere". @ "
H13 1440 10    #[FROM U&S& NEWS + WORLD REPORT, MAY 8, 1961]#
H13 1460  1    _NEXT FOR CUBA: AN ARMS BLOCKADE?_
H13 1460  4       Look at Castro now- cockier than ever with arms
H13 1470  3    and agents to threaten the Americas.
H13 1470  9       How can the United States act?
H13 1480  4       Blockade is one answer offered by experts. In it
H13 1490  3    they see a way to isolate Cuba, stop infiltration,
H13 1490 12    maybe finish Castro, too.
H13 1500  3       This is the question now facing President Kennedy:
H13 1510  2    How to put a stop to the Soviet buildup in Cuba and
H13 1510 14    to Communist infiltration of this hemisphere?
H13 1520  6       On April 25, the White House reported that a total
H13 1530  7    embargo of remaining U&S& trade with Cuba was being
H13 1540  6    considered. Its aim: To undermine further Cuba's economy.
H13 1550  3    weaken Castro.
H13 1550  5       Another strategy- bolder and tougher- was also attracting
H13 1560  6    notice in Washington: a naval and air blockade to cut
H13 1570  6    Cuba off from the world, destroy Castro.
H13 1580  1       Blockade, in the view of military and civilian experts,
H13 1580 10    could restore teeth to the Monroe Doctrine. It could
H13 1590  8    halt a flood of Communist arms and strategic supplies
H13 1600  5    now reaching Castro. It could stop Cuban re-export
H13 1610  4    of guns and propaganda materials to South America.
H13 1620  1    It would be the most severe reprisal, short of declared
H13 1620 11    war, that the United States could invoke against Castro.
H13 1630  7       It is the strategy of blockade, therefore, that
H13 1640  5    is suddenly at the center of attention of administration
H13 1650  3    officials, Members of Congress, officers in the Pentagon.
H13 1660  2    As a possible course of action, it also is the center
H13 1660 13    of debate and is raising many questions. Among these
H13 1670  9    questions:
H13 1680  1    _WHAT WOULD A CUBA BLOCKADE TAKE?_
H13 1680  5       Military experts say a tight naval blockade off
H13 1690  2    Cuban ports and at the approaches to Cuban waters would
H13 1690 12    require two naval task forces, each built around an
H13 1700  9    aircraft carrier with a complement of about 100 planes
H13 1710  7    and several destroyers.
H13 1710 10       The Navy, on April 25, announced it is bringing
H13 1720  9    back the carrier Shangri-La from the Mediterranean,
H13 1730  4    increasing to four the number of attack carriers in
H13 1740  4    the vicinity of Cuba. More than 36 other big Navy ships
H13 1750  2    are no less than a day's sailing time away.
H13 1750 11       To round out the blockading force, submarines would
H13 1760  7    be needed- to locate, identify and track approaching
H13 1770  4    vessels. Land-based radar would help with this task.
H13 1780  3    So would radar picket ships. A squadron of Navy jets
H13 1780 13    and another of long-range patrol planes would add support
H13 1790 10    to the carrier task forces.
H13 1800  3       Three requirements go with a blockade: It must be
H13 1810  2    proclaimed; the blockading force must be powerful enough
H13 1810 10    to enforce it; and it must be enforced without discrimination.
H13 1820  9       Once these conditions of international law are met,
H13 1830  8    countries that try to run to blockade do so at their
H13 1840  8    own risk. Blockade runners can be stopped- by gunfire,
H13 1850  5    if necessary- searched and held, at least temporarily.
H13 1860  1    They could be sent to U&S& ports for rulings whether
H13 1860 11    cargo should be confiscated.
H13 1870  4    _WHAT COULD A BLOCKADE ACCOMPLISH?_
H13 1880  1       Plenty, say the experts. In a broad sense, it would
H13 1880 10    reaffirm the Monroe Doctrine by opposing Communist
H13 1890  5    interference in the Western Hemisphere. It could, by
H13 1900  4    avoiding direct intervention, provide a short-of-war
H13 1910  1    strategy to meet short-of-war infiltration.
H13 1910  8       Primary target would be shipments of tanks, guns,
H13 1920  7    aviation gasoline and ammunition coming from Russia
H13 1930  4    and Czechoslovakia. Shipments of arms from Western
H13 1940  1    countries could similarly be seized as contraband.
H13 1940  8    In a total blockade, action could also be taken against
H13 1950  7    ships bringing in chemicals, oils, textiles, and even
H13 1960  5    foodstuffs. At times, three ships a day from the Soviet
H13 1970  3    bloc are unloading in Cuban ports.
H14 0010  1    From its inception in 1920 with the passage of Public
H14 0010 11    Law 236, 66th Congress, the purpose of the vocational
H14 0020  7    rehabilitation program has been to assist the States,
H14 0030  5    by means of grants-in-aid, to return disabled men and
H14 0040  3    women to productive, gainful employment. The authority
H14 0040 10    for the program was renewed several times until the
H14 0050  9    vocational rehabilitation program was made permanent
H14 0060  5    as Title /5, of the Social Security Act in 1935. Up
H14 0070  5    to this time and for the next eight years, the services
H14 0080  1    provided disabled persons consisted mainly of training,
H14 0080  8    counseling, and placement on a job. Recognizing the
H14 0090  8    limitations of such a program, the 78th Congress in
H14 0100  5    1943 passed P& L& 113, which broadened the concept
H14 0110  3    of rehabilitation to include the provision of physical
H14 0120  1    restoration services to remove or reduce disabilities,
H14 0120  8    and which revised the financing structure.
H14 0130  4    _RECENT CHANGES._
H14 0130  6       Despite the successful rehabilitation of over a
H14 0140  5    half million disabled persons in the first eleven years
H14 0150  3    after 1943, the existing program was still seen to
H14 0150 12    be inadequate to cope with the nation's backlog of
H14 0160  9    an estimated two million disabled. To assist the States,
H14 0170  6    therefore, in rehabilitating handicapped individuals,
H14 0180  2    "so that they may prepare for and engage in remunerative
H14 0190  1    employment to the extent of their capabilities", the
H14 0190  9    83rd Congress enacted the Vocational Rehabilitation
H14 0200  6    Amendments of 1954 (P& L& 565). These amendments to
H14 0210  7    the Vocational Rehabilitation Act were designed to
H14 0220  5    help provide for more specialized rehabilitation facilities,
H14 0230  2    for more sheltered and "half-way" workshops, for greater
H14 0240  2    numbers of adequately trained personnel, for more comprehensive
H14 0250  1    services to individuals (particularly to the homebound
H14 0250  8    and the blind), and for other administrative improvements
H14 0260  6    to increase the program's overall effectiveness.
H14 0270  3    _FINANCIAL ASPECTS._
H14 0270  5       Under the law as it existed until 1943, the Federal
H14 0280  6    Government made grants to the States on the basis of
H14 0290  5    population, matching State expenditures on a 50-50
H14 0300  1    basis. Under P& L& 113, 78th Congress, the Federal
H14 0300 10    Government assumed responsibility for 100% of necessary
H14 0310  7    State expenditures in connection with administration
H14 0320  5    and the counseling and placement of the disabled, and
H14 0330  4    for 50% of the necessary costs of providing clients
H14 0340  1    with rehabilitation case services. Throughout these
H14 0340  7    years, the statutory authorization was for such sums
H14 0350  6    as were necessary to carry out the provisions of the
H14 0360  5    Act.
H14 0360  6       The 1954 Amendments completely changed the financing
H14 0370  3    of the vocational rehabilitation program, providing
H14 0380  1    for a three-part grant structure- for (1) basic support;
H14 0380 11    (2) extension and improvement; and (3) research, demonstrations,
H14 0390  7    training and traineeships for vocational rehabilitation-
H14 0400  5    and in addition for short-term training and instruction.
H14 0410  6    The first part of the new structure- that for supporting
H14 0420  6    the basic program of vocational rehabilitation services-
H14 0430  1    is described in this Section. Subsequent sections on
H14 0440  2    grants describe the other categories of the grant structure.
H14 0450  1       The following table shows, for selected years, the
H14 0450  9    authorizations, appropriations, allotment base, Federal
H14 0460  5    grants to States and State matching funds for this
H14 0470  5    part of the grant program:
H14 0470 10    #METHOD OF DISTRIBUTING FUNDS#
H14 0480  3    _DESCRIPTION OF FORMULA._
H14 0480  6       In order to assist the States in maintaining basic
H14 0500  6    vocational rehabilitation services, Section 2 of the
H14 0510  4    amended Act provides that allotments to States for
H14 0520  1    support of such services be based on (1) need, as measured
H14 0520 12    by a State's population, and (2) fiscal capacity, as
H14 0530  7    measured by its per capita income. The Act further
H14 0540  5    provides for a "floor" or minimum allotment, set at
H14 0550  3    the 1954 level, which is called the "base" allotment,
H14 0560  1    and a "ceiling" or maximum allotment, for each State.
H14 0560 10    It stipulates, in addition, that all amounts remaining
H14 0570  7    as a result of imposing the "ceiling", and not used
H14 0590  4    for insuring the "floor", be redistributed to those
H14 0600  3    States still below their maximums. These provisions
H14 0610  1    are designed to reflect the differences in wealth and
H14 0610 10    population among the States, with the objective that
H14 0620  7    a vocationally handicapped person have access to needed
H14 0630  5    services regardless of whether he resides in a State
H14 0640  3    with a low or high per capita income or a sparsely
H14 0640 14    or thickly populated State. The provisions are also
H14 0650  7    designed to avoid disruption in State programs already
H14 0660  5    in operation, which might otherwise result from the
H14 0670  3    allotment of funds on the basis of wealth and population
H14 0680  1    alone.
H14 0680  2    _METHOD OF COMPUTING ALLOTMENTS._
H14 0680  6       The method used in computing the allotments is specifically
H14 0690  5    set forth in the Act. The term "State" means the several
H14 0700  5    States, the District of Columbia, the Virgin Islands,
H14 0710  3    Guam and Puerto Rico; the term "United States" includes
H14 0720  2    the several States and the District of Columbia, and
H14 0730  1    excludes the Virgin Islands, Guam and Puerto Rico,
H14 0730  9    and, prior to 1962, Alaska and Hawaii. The following
H14 0740  7    steps are employed in calculations:
H14 0750  1    _1._
H14 0750  2       For each State (except Puerto Rico, Guam, the Virgin
H14 0760  2    Islands, and, prior to 1962, Alaska and Hawaii) determine
H14 0770  1    average per capita income based on the last three years.
H14 0770 11    (See Source of Data, below for per capita income data
H14 0780  9    to be used in this step.)
H14 0790  1    _2._
H14 0790  2       Determine the average per capita income for the
H14 0790 10    U& S& based on the last three years. (See Source of
H14 0800 10    Data, below, for per capita income data to be used
H14 0810  9    in this step.)
H14 0810 12    _3._
H14 0810 13       Determine the ratio of 50% to the average per capita
H14 0820 10    income of the U& S& (Divide 50 by the result obtained
H14 0830  7    in item 2 above.)
H14 0830 11    _4._
H14 0830 12       Determine for each State (except the Virgin Islands,
H14 0840  8    Guam and Puerto Rico, and, prior to 1962, Alaska and
H14 0850  8    Hawaii) that percentage which bears the same ratio
H14 0860  5    to 50% as the particular State's average per capita
H14 0870  2    income bears to the average per capita income of the
H14 0870 12    U& S&. (Multiply the result obtained in item 3 above
H14 0880  9    by the result obtained for each State in item 1 above.)
H14 0890  8    _5._
H14 0890  9       Determine the particular State's "allotment percentage".
H14 0900  4    By law this is 75% for the Virgin Islands, Guam and
H14 0910  6    Puerto Rico. (Alaska and Hawaii had fixed allotment
H14 0920  3    percentages in effect prior to fiscal year 1962.)
H14 0930  1       In all other States it is the difference obtained
H14 0930 10    by subtracting from 100 the result obtained in item
H14 0940  8    4 above; except that no State shall have an allotment
H14 0950  6    percentage less than 33-1/3% nor more than 75%. If
H14 0960  4    the resulting difference for the particular State is
H14 0970  1    less or more than these extremes, the State's allotment
H14 0970 10    percentage must be raised or lowered to the appropriate
H14 0980  9    extreme.
H14 0980 10    _6._
H14 0980 11       Square each State's allotment percentage.
H14 0990  5    _7._
H14 0990  6       Determine each State's population. (See Source of
H14 1000  5    Data, below for population data to be used in this
H14 1010  6    step.)
H14 1010  7    _8._
H14 1010  8       Multiply the population of each State by the square
H14 1020  5    of its allotment percentage. (Multiply result obtained
H14 1030  1    in item 7 above, by result obtained in item 6 above.)
H14 1030 12    _9._
H14 1040  1       Determine the sum of the products obtained in item
H14 1040 10    8 above, for all the States. (For each State, make
H14 1050  6    all computations set forth in items 1 to 8 above, and
H14 1060  6    then add the results obtained for each State in item
H14 1070  1    8.)
H14 1070  2    _10._
H14 1070  3       Determine the ratio that the amount being allotted
H14 1080  1    is to the sum of the products for all the States. (Divide
H14 1080 13    the amount being allotted by the result obtained in
H14 1090  8    item 9 above.)
H14 1090 11    _11._
H14 1090 12       Determine the particular State's unadjusted allotment
H14 1100  6    for the particular fiscal year. (Multiply the State
H14 1110  6    product in item 8 above by the result obtained in item
H14 1120  5    10 above.)
H14 1120  7    _12._
H14 1120  8       Determine if the particular State's unadjusted allotment
H14 1130  4    (result obtained in item 11 above) is greater than
H14 1140  4    its maximum allotment, and if so lower its unadjusted
H14 1150  1    allotment to its maximum allotment. (Each State's unadjusted
H14 1150  9    allotment for any fiscal year, which exceeds its minimum
H14 1160  9    allotment described in item 13 below by a percentage
H14 1170  8    greater than one and one-half times the percentage
H14 1180  3    by which the sum being allotted exceeds $23,000,000,
H14 1190  1    must be reduced by the amount of the excess.)
H14 1190 10    _13._
H14 1190 11       Determine if the particular State's unadjusted allotment
H14 1200  6    (result obtained in item 11 above) is less than its
H14 1210  7    minimum (base) allotment, and if so raise its unadjusted
H14 1220  1    allotment to its minimum allotment. Regardless of its
H14 1220  9    unadjusted allotment, each State is guaranteed by law
H14 1230  8    a minimum allotment each year equal to the allotment
H14 1240  7    which it received in fiscal year 1954- increased by
H14 1250  5    a uniform percentage of 5.4865771 which brings total
H14 1260  1    1954 allotments to all States up to $23,000,000.
H14 1260  9    _14._
H14 1260 10       The funds recouped by reductions in item 12 above
H14 1270  8    are used: first, to increase the unadjusted allotments
H14 1280  4    to the specified minimum in those States where the
H14 1290  3    unadjusted allotment is less than the minimum allotment
H14 1290 11    (item 13 above); and second, to increase uniformly
H14 1300  8    the allotments to those States whose allotments are
H14 1310  5    below their maximums, with adjustments to prevent the
H14 1320  4    allotment of any State from thereby exceeding its maximum.
H14 1330  1    _ADDITIONAL NOTE ON ALLOTMENTS._
H14 1330  5       For the States which maintain two separate agencies-
H14 1340  4    one for the vocational rehabilitation of the blind,
H14 1350  3    and one for the rehabilitation of persons other than
H14 1350 12    the blind- the Act specifies that their minimum (base)
H14 1360  8    allotment shall be divided between the two agencies
H14 1370  7    in the same proportion as it was divided in fiscal
H14 1380  3    year 1954. Funds allotted in addition to their minimum
H14 1390  1    allotment are apportioned to the two agencies as they
H14 1390 10    may determine.
H14 1400  1    #MATCHING REQUIREMENTS#
H14 1400  3    _EXPLANATION OF MATCHING FORMULA._
H14 1410  1       As is the case with the allotment provisions for
H14 1410  9    support of vocational rehabilitation services, the
H14 1420  4    matching requirements are also based on a statutory
H14 1430  3    formula. Prior to 1960, in order to provide matching
H14 1430 12    for the minimum (base) allotment, State funds had to
H14 1440  9    equal 1954 State funds. Prior to and since 1960 the
H14 1450  7    rest of the support allotment is matched at rates related
H14 1460  4    to the fiscal capacity of the State, with a pivot of
H14 1470  2    40% State (or 60% Federal) participation in total program
H14 1480  1    costs. The percentage of Federal participation in such
H14 1480  9    costs for any State is referred to in the law as that
H14 1490 10    State's "Federal share". For purposes of this explanation,
H14 1500  6    this percentage is referred to as the States "unadjusted
H14 1510  5    Federal share". Beginning in 1960, the matching requirements
H14 1520  3    for the base allotment are being adjusted (upward or
H14 1530  2    downward, as required) 25% a year, so that by 1963
H14 1530 12    the entire support allotment will be matched on the
H14 1540  8    basis of a 40% pivot State share, with maximum and
H14 1550  5    minimum State shares of 50% and 30%, respectively.
H14 1560  1    The pre-1960 rate of Federal participation with respect
H14 1570  1    to any State's base allotment, as well as the adjusted
H14 1570 11    rate in effect during the 1960-1962 period, is designated
H14 1580  8    by the statute as that State's "adjusted Federal Share".
H14 1590  5    The provisions for determining a State's unadjusted
H14 1600  4    Federal share are designed to reflect the varying financial
H14 1610  3    resources among the States. The purpose of the adjusted
H14 1620  1    Federal share relating to the base allotment and of
H14 1620 10    the transition provisions for reaching the unadjusted
H14 1630  5    Federal share is to prevent dislocations from abrupt
H14 1640  4    changes in matching rates.
H14 1650  1    _METHOD OF COMPUTING FEDERAL SHARES._
H14 1650  3       The method used for computing the respective Federal
H14 1660  2    and State shares in total program costs is specifically
H14 1660 11    set forth in the Act. The term "State" means the several
H14 1670 11    States, the District of Columbia, the Virgin Islands,
H14 1680  8    Guam and Puerto Rico; the term "United States" includes
H14 1690  6    the several States and the District of Columbia and
H14 1700  6    excludes the Virgin Islands, Guam and Puerto Rico,
H14 1710  4    and, prior to 1962, Alaska and Hawaii. The following
H14 1720  1    steps are employed in the calculations:
H14 1720  7    _1._
H14 1720  8       For each State (except the Virgin Islands, Guam,
H14 1730  6    Puerto Rico, and, prior to 1962, Alaska and Hawaii),
H14 1740  4    determine the average per capita income for the last
H14 1750  3    three years. (the same amount used in item 1 under
H14 1750 13    Method of Computing allotments, above.)
H14 1760  5    _2._
H14 1760  6       Determine the average per capita income for the
H14 1770  6    United States for the last three years. (The same amount
H14 1780  3    used in item 2 under Method of Computing Allotments,
H14 1790  1    above.)
H14 1790  2    _3._
H14 1790  3       Determine the ratio of 40% to the average per capita
H14 1800  2    income of the United States. (Divide 40 by the amount
H14 1800 12    used in item 2 above.)
H14 1810  5    _4._
H14 1810  6       Determine for each State (except the Virgin Islands,
H14 1820  2    Guam, Puerto Rico, and, prior to 1962, Alaska and hawaii),
H14 1830  1    that percentage which bears the same ration to 40%
H14 1830 10    as the particular State's average per capita income
H14 1840  6    bears to the average per capita income of the United
H14 1850  6    States. (Multiply the result obtained in item 3 above
H14 1860  5    by the amount used for each State in item 1 above.)
H14 1860 16    _5._
H14 1870  1       Determine the particular State's "Federal Share".
H14 1870  7    By law this is 70% for the Virgin Islands, Guam and
H14 1880 11    Puerto Rico. (Alaska and Hawaii had fixed Federal share
H14 1890  8    percentages in effect prior to fiscal year 1962.)
H14 1900  5       In all other States it is the difference obtained
H14 1910  2    by subtracting from 100 the result obtained in item
H14 1910 11    4 above; except that no State shall have a Federal
H14 1920  8    share less than 50% nor more than 70%. If the resulting
H14 1930  9    difference for the particular State is less or more
H14 1940  6    than these extremes, the State's Federal share must
H14 1950  3    be raised or lowered to the appropriate extreme.
H15 0010  1       At the entrance side of the shelter, each roof beam
H15 0010 11    is rested on the inside 4 inches of the block wall.
H15 0020 10    The outside 4-inch space is filled by mortaring blocks
H15 0030  5    on edge. The wooden bracing between the roof beams
H15 0040  2    is placed flush with the inside of the wall. Mortar
H15 0040 12    is poured between this bracing and the 4-inch blocks
H15 0050  9    on edge to complete the wall thickness for radiation
H15 0060  5    shielding. (For details see inset, fig& 5.)
H15 0070  2       The first one or two roof boards (marked "~E" in
H15 0080  1    fig& 6) are slipped into place across the roof beams,
H15 0080 11    from outside the shelter. These boards are nailed to
H15 0090  8    the roof beams by reaching up through the open space
H15 0100  5    between the beams, from inside the shelter. Concrete
H15 0110  1    blocks are passed between the beams and put on the
H15 0110 11    boards. The roof blocks are in two layers and are not
H15 0120 10    mortared together.
H15 0130  1       Work on the roof continues in this way. The last
H15 0130 11    roof boards are covered with blocks from outside the
H15 0140  6    shelter.
H15 0140  7       When the roof blocks are all in place, the final
H15 0150  7    rows of wall blocks are mortared into position. The
H15 0160  2    structure is complete. (See fig& 7.) Building plans
H15 0160 10    are on page 21.
H15 0170  4       Solid concrete blocks, relatively heavy and dense,
H15 0180  1    are used for this shelter. These blocks are sold in
H15 0180 11    various sizes so it seldom is necessary to cut a block
H15 0190 10    to fit.
H15 0190 12       Solid blocks are recommended because hollow blocks
H15 0200  6    would have to be filled with concrete to give effective
H15 0210  4    protection.
H15 0210  5       Bricks are an alternative. If they are used, the
H15 0220  6    walls and roof should be 10 inches thick to give the
H15 0230  2    same protection as the 8-inch solid concrete blocks.
H15 0230 11       The illustrations in fig& 8 show how to lay a concrete
H15 0240 11    block wall. More detailed instructions may be obtained
H15 0250  6    from your local building supply houses and craftsmen.
H15 0260  4    Other sources of information include the National Concrete
H15 0270  2    Masonry Association, 38 South Dearborn Street, Chicago,
H15 0280  2    Ill&, the Portland Cement Association, 33 West Grand
H15 0290  1    Avenue, Chicago, Ill&, and the Structural Clay Products
H15 0290  9    Association, Washington, D&C&.
H15 0310  1    _ABOVEGROUND DOUBLE-WALL SHELTER_
H15 0310  1       An outdoor, aboveground fallout shelter also may
H15 0310  8    be built with concrete blocks. (See fig& 9, double-wall
H15 0320  7    shelter.) Most people would have to hire a contractor
H15 0330  6    to build this shelter. Plans are on pages 22 and 23.
H15 0340  4       This shelter could be built in regions where water
H15 0350  1    or rock is close to the surface, making it impractical
H15 0350 11    to build an underground shelter.
H15 0360  2       Two walls of concrete blocks are constructed at
H15 0370  2    least 20 inches apart. The space between them is filled
H15 0370 12    with pit-run gravel or earth. The walls are held together
H15 0380  9    with metal ties placed in the wet mortar as the walls
H15 0390  8    are built.
H15 0390 10       The roof shown here (fig& 9) is a 6-inch slab of
H15 0400  9    reinforced concrete, covered with at least 20 inches
H15 0410  4    of pit-run gravel. An alternate roof, perhaps more
H15 0420  1    within do-it-yourself reach, could be constructed of
H15 0420 10    heavy wooden roof beams, overlaid with boards and waterproofing.
H15 0430  7    It would have to be covered with at least 28 inches
H15 0440  6    of pit-run gravel.
H15 0440 10       The materials for a double-wall shelter would cost
H15 0450  8    about $700. Contractors' charges would be additional.
H15 0460  4    The shelter would provide almost absolute fallout protection.
H15 0470  2    _PRE-SHAPED METAL SHELTER_
H15 0470  6       Pre-shaped corrugated metal sections or pre-cast
H15 0480  6    concrete can be used for shelters either above or below
H15 0490  4    ground. These are particularly suitable for regions
H15 0490 11    where water or rock is close to the surface. They form
H15 0500 11    effective fallout shelters when mounded over with earth,
H15 0510  7    as shown in figure 10.
H15 0520  1       Materials for this shelter would cost about $700.
H15 0520  8    A contractor probably would be required to help build
H15 0530  7    it. His charges would be added to the cost of materials.
H15 0540  5    This shelter, as shown on page 24, would provide almost
H15 0550  2    absolute protection from fallout radiation. An alternate
H15 0560  1    hatchway entrance, shown on page 25, would reduce the
H15 0560 10    cost of materials $50 to $100.
H15 0570  4       The National Lumber Manufacturers Association, Washington,
H15 0580  2    D& C&, is developing plans to utilize specially treated
H15 0590  2    lumber for underground shelter construction. The Structural
H15 0600  1    Clay Products Institute, Washington, D&C&, is working
H15 0600  8    to develop brick and clay products suitable for shelter
H15 0610  8    construction.
H15 0620  1    _UNDERGROUND CONCRETE SHELTER_
H15 0620  3       An underground reinforced concrete shelter can be
H15 0630  3    built by a contractor for about $1,000 to $1,500, depending
H15 0640  1    on the type of entrance. The shelter shown would provide
H15 0640 11    almost absolute fallout protection.
H15 0650  3       The illustration (fig& 11) shows this shelter with
H15 0660  3    the roof at ground level and mounded over. The same
H15 0660 13    shelter could be built into an embankment or below
H15 0670  9    ground level. Plans for the shelter, with either a
H15 0680  7    stairway or hatchway entrance, are shown on pages 26
H15 0690  4    and 27.
H15 0690  6       Another type of shelter which gives excellent fallout
H15 0700  2    protection can be built as an added room to the basement
H15 0710  1    of a home under construction. It would add about $500
H15 0710 11    to the total cost of the home. The shelter illustrated
H15 0720  8    in figure 12 is based on such a room built in a new
H15 0730  7    home in the Washington, D&C& area in the Spring of
H15 0740  3    1959.
H15 0740  4       IMPORTANT CONSIDERATIONS common to each type of
H15 0750  5    shelter are:
H15 0750  7    _1._
H15 0750  8       Arrangement of the entrance.
H15 0760  1    _2._
H15 0760  2       Ventilation.
H15 0760  3    _3._
H15 0760  4       Radio reception.
H15 0760  6    _4._
H15 0760  7       Lighting.
H15 0770  1       THE ENTRANCE must have at least one right-angle
H15 0770 10    turn. Radiation scatters somewhat like light. Some
H15 0780  7    will go around a corner. The rest continues in a straight
H15 0790  7    line. Therefore, sharp turns in a shelter entrance
H15 0800  5    will reduce radiation intensity inside the shelter.
H15 0810  1       VENTILATION is provided in a concrete block basement
H15 0820  1    shelter by vents in the wall and by the open entrance.
H15 0820 12    A blower may be installed to increase comfort.
H15 0830  7       A blower is essential for the double-wall shelter
H15 0840  6    and for the underground shelters. It should provide
H15 0850  2    not less than 5 cubic feet per minute of air per person.
H15 0850 14    Vent pipes also are necessary (as shown in figs& 9,
H15 0860 10    10, and 11), but filters are not.
H15 0870  4       RADIO RECEPTION is cut down by the shielding necessary
H15 0880  3    to keep out radiation. As soon as the shelter is completed
H15 0890  2    a radio reception check must be made. It probably will
H15 0890 12    be necessary to install an outside antenna, particularly
H15 0900  8    to receive ~CONELRAD broadcasts.
H15 0910  2       LIGHTING is an important consideration. Continuous
H15 0920  3    low-level lighting may be provided in the shelter by
H15 0930  3    means of a 4-cell hot-shot battery to which is wired
H15 0930 15    a 150-milliampere flashlight-type bulb. Tests have
H15 0940  6    shown that such a device, with a fresh battery, will
H15 0950  6    furnish light continuously for at least 10 days. With
H15 0960  4    a spare battery, a source of light for 2 weeks or more
H15 0970  1    would be assured. A flashlight or electric lantern
H15 0970  9    also should be available for those periods when a brighter
H15 0980  7    light is needed. There should be a regular electrical
H15 0990  5    outlet in the shelter as power may continue in many
H15 1000  3    areas.
H15 1000  4       OTHER CONSIDERATIONS.- If there are outside windows
H15 1010  4    in the basement corner where you build a shelter, they
H15 1020  2    should be shielded as shown in the Appendix, page 29.
H15 1020 12    Other basement windows should be blocked when an emergency
H15 1030  8    threatens. Basement walls that project above the ground
H15 1040  7    should be shielded as shown in the Appendix, page 29.
H15 1050  4       In these shelters the entrance should be not more
H15 1060  3    than 2 feet wide. Bunks, or materials to build them,
H15 1060 13    may have to be put inside the enclosure before the
H15 1070  9    shelter walls are completed.
H15 1080  1       The basement or belowground shelters also will serve
H15 1080  9    for tornado or hurricane protection.
H15 1090  4    #/3,. LIVING IN A SHELTER#
H15 1090  9    @ The radioactivity of fallout decays rapidly at first.
H15 1110  8    Forty-nine hours after an atomic burst the radiation
H15 1120  7    intensity is only about 1 percent of what it was an
H15 1130  6    hour after the explosion. But the radiation may be
H15 1140  2    so intense at the start that one percent may be extremely
H15 1140 13    dangerous.
H15 1150  1       Therefore, civil defense instructions received over
H15 1150  7    ~CONELRAD or by other means should be followed. A battery-powered
H15 1170  1    radio is essential. Radiation instruments suitable
H15 1170  7    for home use are available, and would be of value in
H15 1180  8    locating that portion of the home which offers the
H15 1190  4    best protection against fallout radiation. There is
H15 1200  1    a possibility that battery-powered radios with built-in
H15 1200 10    radiation meters may become available. One instrument
H15 1210  6    thus would serve both purposes.
H15 1220  1       Your local civil defense will gather its own information
H15 1220 10    and will receive broad information from State and Federal
H15 1230  9    sources. It will tell you as soon as possible:
H15 1240  8       How long to stay in your shelter.
H15 1250  2       How soon you may go outdoors.
H15 1250  8       How long you may stay outside.
H15 1260  4       You should be prepared to stay in your shelter full
H15 1270  2    time for at least several days and to make it your
H15 1270 13    home for 14 days or longer. A checklist in the Appendix,
H15 1280  9    (page 30) tells what is needed. Families with children
H15 1290  5    will have particular problems. They should provide
H15 1300  3    for simple recreation.
H15 1300  6       There should be a task for everyone and these tasks
H15 1310  6    should be rotated. Part of the family should be sleeping
H15 1320  3    while the rest is awake.
H15 1320  8       To break the monotony it may be necessary to invent
H15 1330  7    tasks that will keep the family busy. Records such
H15 1340  3    as diaries can be kept.
H15 1340  8       The survival of the family will depend largely on
H15 1350  5    information received by radio. A record should be kept
H15 1360  3    of the information and instructions, including the
H15 1360 10    time and date of broadcast.
H15 1370  4       Family rationing probably will be necessary.
H15 1380  1       Blowers should be operated periodically on a regular
H15 1380  9    schedule. There will come a time in a basement shelter
H15 1390 10    when the radiation has decayed enough to allow use
H15 1400  7    of the whole basement. However, as much time as possible
H15 1410  5    should be spent within the shelter to hold radiation
H15 1420  1    exposure to a minimum.
H15 1420  5       The housekeeping problems of living in a shelter
H15 1430  4    will begin as soon as the shelter is occupied. Food,
H15 1430 14    medical supplies, utensils, and equipment, if not already
H15 1440  8    stored in the shelter, must be quickly gathered up
H15 1450  7    and carried into it.
H15 1450 11       After the family has settled in the shelter, the
H15 1460  9    housekeeping rules should be spelled out by the adult
H15 1470  7    in charge.
H15 1470  9       Sanitation in the confines of the family shelter
H15 1480  5    will require much thought and planning.
H15 1490  1       Provision for emergency toilet facilities and disposal
H15 1490  8    of human wastes will be an unfamiliar problem. A covered
H15 1500  9    container such as a kitchen garbage pail might do as
H15 1510  6    a toilet. A 10-gallon garbage can, with a tightly fitting
H15 1520  4    cover, could be used to keep the wastes until it is
H15 1530  2    safe to leave the shelter.
H15 1530  7       Water rationing will be difficult and should be
H15 1540  4    planned carefully.
H15 1540  6       A portable electric heater is advisable for shelters
H15 1550  5    in cold climates. It would take the chill from the
H15 1560  2    shelter in the beginning. Even if the electric power
H15 1560 11    fails after an attack, any time that the heater has
H15 1570  9    been used will make the shelter that much more comfortable.
H15 1580  5    Body heat in the close quarters will help keep up the
H15 1590  5    temperature. Warm clothing and bedding, of course,
H15 1600  1    are essential.
H15 1600  3       Open-flame heating or cooking should be avoided.
H15 1610  1    A flame would use up air.
H15 1610  7       Some families already have held weekend rehearsals
H15 1620  3    in their home shelters to learn the problems and to
H15 1630  1    determine for themselves what supplies they would need.
H15 1630  9    #/4,. IF AN ATTACK FINDS YOU WITHOUT A PREPARED SHELTER#
H15 1640  9    @ Few areas, if any, are as good as prepared shelters
H15 1650  7    but they are worth knowing about.
H15 1660  1       A family dwelling without a basement provides some
H15 1660  9    natural shielding from fallout radiation. On the ground
H15 1670  7    floor the radiation would be about half what it is
H15 1680  7    outside. The best protection would be on the ground
H15 1690  3    floor in the central part of the house.
H15 1690 11       A belowground basement can cut the fallout radiation
H15 1700  7    to one-tenth of the outside level. The safest place
H15 1710  5    is the basement corner least exposed to windows and
H15 1720  2    deepest below ground.
H15 1720  5       If there is time after the warning, the basement
H15 1730  3    shielding could be improved substantially by blocking
H15 1740  1    windows with bricks, dirt, books, magazines, or other
H15 1740  9    heavy material.
H15 1750  1    #/5,. SHELTER IN APARTMENT BUILDINGS#
H15 1750  6    @ Large apartment buildings of masonry or concrete
H15 1760  5    provide better natural shelter than the usual family
H15 1770  2    dwellings. In general, such apartments afford more
H15 1770  9    protection than smaller buildings because their walls
H15 1780  7    are thick and there is more space.
H15 1790  3       The central area of the ground floor of a heavily
H15 1800  1    constructed apartment building, with concrete floors,
H15 1800  7    should provide more fallout protection than the ordinary
H15 1810  7    basement of a family dwelling. The basement of such
H15 1820  5    an apartment building may provide as much natural protection
H15 1830  2    as the specially constructed concrete block shelter
H15 1830  9    recommended for the basement of a family dwelling.
H15 1840  8       The Federal Government is aiding local governments
H15 1850  6    in several places to survey residential, commercial
H15 1860  2    and industrial buildings to determine what fallout
H15 1870  1    protection they would provide, and for how many people.
H15 1870 10       The problem for the city apartment dweller is primarily
H15 1880  9    to plan the use of existing space. Such planning will
H15 1890  7    require the cooperation of other occupants and of the
H15 1900  5    apartment management.
H16 0010  1       A former du Pont official became a General Motors
H16 0010 10    vice president and set about maximizing du Pont's share
H16 0020  8    of the General Motors market. Lines of communications
H16 0030  5    were established between the two companies and several
H16 0040  4    du Pont products were actively promoted. Within a few
H16 0050  3    years various du Pont manufactured items were filling
H16 0050 11    the entire requirements of from four to seven of General
H16 0060  9    Motors' eight operating divisions. The Fisher Body
H16 0070  5    division, long controlled by the Fisher brothers under
H16 0080  4    a voting trust even though General Motors owned a majority
H16 0090  3    of its stock, followed an independent course for many
H16 0090 12    years, but by 1947 and 1948 "resistance had collapsed"
H16 0100  9    and its purchases from du Pont "compared favorably"
H16 0110  6    with purchases by other General Motors divisions. Competitors
H16 0120  4    came to receive higher percentage of General Motors
H16 0130  4    business in later years, but it is "likely" that this
H16 0140  3    trend stemmed "at least in part" from the needs of
H16 0140 13    General Motors outstripping du Pont's capacity. "
H16 0150  6       The fact that sticks out in this voluminous record
H16 0160  8    is that the bulk of du Pont's production has always
H16 0170  4    supplied the largest part of the requirements of the
H16 0180  3    one customer in the automobile industry connected to
H16 0180 11    du Pont by a stock interest. The inference is overwhelming
H16 0190  9    that du Pont's commanding position was promoted by
H16 0200  6    its stock interest and was not gained solely on competitive
H16 0210  4    merit". 353 U& S&, at 605.
H16 0220  1       This Court agreed with the trial court "that considerations
H16 0220  9    of price, quality and service were not overlooked by
H16 0230  8    either du Pont or General Motors". 353 U& S&, at 606.
H16 0240  7    However, it determined that neither this factor, nor
H16 0250  5    "the fact that all concerned in high executive posts
H16 0260  2    in both companies acted honorably and fairly, each
H16 0260 10    in the honest conviction that his actions were in the
H16 0270  9    best interests of his own company and without any design
H16 0280  6    to overreach anyone, including du Pont's competitors",
H16 0290  2    353 U& S&, at 607, outweighed the Government's claim
H16 0300  2    for relief. This claim, as submitted to the District
H16 0310  1    Court and dismissed by it, 126 F&Supp&235, alleged
H16 0310  9    violation not only of @ 7 of the Clayton Act, but also
H16 0320 12    of @ @ 1 and 2 of the Sherman Act. The latter provisions
H16 0330  7    proscribe any contract, combination, or conspiracy
H16 0340  3    in restraint of interstate or foreign trade, and monopolization
H16 0350  2    of, or attempts, combinations, or conspiracies to monopolize,
H16 0360  1    such trade. However, this Court put to one side without
H16 0360 11    consideration the Government's appeal from the dismissal
H16 0370  7    of its Sherman Act allegations. It rested its decision
H16 0380  7    solely on @ 7, which reads in pertinent part: "
H16 0390  4       [N]o corporation engaged in commerce shall acquire,
H16 0400  3    directly or indirectly, the whole or any part of the
H16 0410  2    stock or other share capital of another corporation
H16 0410 10    engaged also in commerce, where the effect of such
H16 0420  7    acquisition may be to substantially lessen competition
H16 0430  3    between the corporation whose stock is so acquired
H16 0440  1    and the corporation making the acquisition, or to restrain
H16 0440 10    such commerce in any section or community, or tend
H16 0450  8    to create a monopoly of any line of commerce. @
H16 0460  5       This section shall not apply to corporations purchasing
H16 0470  2    such stock solely for investment and not using the
H16 0470 11    same by voting or otherwise to bring about, or in attempting
H16 0480 11    to bring about, the substantial lessening of competition
H16 0490  6    **h".
H16 0490  7       The purpose of this provision was thus explained
H16 0500  7    in the Court's opinion: "
H16 0510  1       Section 7 is designed to arrest in its incipiency
H16 0510 10    not only the substantial lessening of competition from
H16 0520  7    the acquisition by one corporation of the whole or
H16 0530  5    any part of the stock of a competing corporation, but
H16 0540  2    also to arrest in their incipiency restraints or monopolies
H16 0550  1    in a relevant market which, as a reasonable probability,
H16 0550 10    appear at the time of suit likely to result from the
H16 0570  9    acquisition by one corporation of all or any part of
H16 0580  7    the stock of any other corporation. The section is
H16 0590  2    violated whether or not actual restraints or monopolies,
H16 0590 10    or the substantial lessening of competition, have occurred
H16 0600  6    or are intended **h". 353 U& S&, at 589.
H16 0610  6       Thus, a finding of conspiracy to restrain trade
H16 0620  3    or attempt to monopolize was excluded from the Court's
H16 0630  1    decision. Indeed, as already noted, the Court proceeded
H16 0630  9    on the assumption that the executives involved in the
H16 0640  7    dealings between du Pont and General Motors acted "honorably
H16 0650  6    and fairly" and exercised their business judgment only
H16 0660  5    to serve what they deemed the best interests of their
H16 0670  3    own companies. This, however, did not bar finding that
H16 0670 12    du Pont had become pre-eminent as a supplier of automotive
H16 0680 11    fabrics and finishes to General Motors; that these
H16 0690  7    products constituted a "line of commerce" within the
H16 0700  5    meaning of the Clayton Act; that General Motors' share
H16 0710  3    of the market for these products was substantial; and
H16 0720  2    that competition for this share of the market was endangered
H16 0730  1    by the financial relationship between the two concerns:
H16 0730  9    "
H16 0740  1       The statutory policy of fostering free competition
H16 0740  7    is obviously furthered when no supplier has an advantage
H16 0750  7    over his competitors from an acquisition of his customer's
H16 0760  4    stock likely to have the effects condemned by the statute.
H16 0770  4    We repeat, that the test of a violation of @ 7 is whether,
H16 0780  2    at the time of suit, there is a reasonable probability
H16 0780 12    that the acquisition is likely to result in the condemned
H16 0790 10    restraints. The conclusion upon this record is inescapable
H16 0800  7    that such likelihood was proved as to this acquisition
H16 0810  5    **h". 353 U& S&, at 607.
H16 0810 11       On the basis of the findings which led to this conclusion,
H16 0820 11    the Court remanded the case to the District Court to
H16 0830  8    determine the appropriate relief. The sole guidance
H16 0840  5    given the Court for discharging the task committed
H16 0850  1    to it was this: "
H16 0850  5       The judgment must therefore be reversed and the
H16 0860  3    cause remanded to the District Court for a determination,
H16 0870  1    after further hearing, of the equitable relief necessary
H16 0870  9    and appropriate in the public interest to eliminate
H16 0880  7    the effects of the acquisition offensive to the statute.
H16 0890  5    The District Courts, in the framing of equitable decrees,
H16 0900  4    are clothed 'with large discretion to model their judgments
H16 0910  3    to fit the exigencies of the particular case'. International
H16 0920  1    Salt Co& v& United States, 332 U& S& 392, 400-401".
H16 0940  3    353 U& S&, at 607-608.
H16 0940  9       This brings us to the course of the proceedings
H16 0950  5    in the District Court.
H16 0950  9    #/2,.#
H16 0950 10    This Court's judgment was filed in the District Court
H16 0960  9    on July 18, 1957. The first pretrial conference- held
H16 0970  7    to appoint amici curiae to represent the interest of
H16 0980  6    the stockholders of du Pont and General Motors and
H16 0990  3    to consider the procedure to be followed in the subsequent
H16 1000  1    hearings- took place on September 25, 1957. At the
H16 1000  9    outset, the Government's spokesman explained that counsel
H16 1010  6    for the Government and for du Pont had already held
H16 1020  8    preliminary discussions with a view to arriving at
H16 1030  4    a relief plan that both sides could recommend to the
H16 1030 14    court. Du Pont, he said, had proposed disenfranchisement
H16 1040  8    of its General Motors stock along with other restrictions
H16 1050  7    on the du Pont-General Motors relationship. The Government,
H16 1060  5    deeming these suggestions inadequate, had urged that
H16 1070  4    any judgment include divestiture of du Pont's shares
H16 1080  2    of General Motors. Counsel for the Government invited
H16 1090  1    du Pont's views on this proposal before recommending
H16 1090  9    a specific program, but stated that if the court desired,
H16 1100  8    or if counsel for du Pont thought further discussion
H16 1110  4    would not be profitable, the Government was prepared
H16 1120  3    to submit a plan within thirty days.
H16 1120 10       Counsel for du Pont indicated a preference for the
H16 1130  8    submission of detailed plans by both sides at an early
H16 1140  6    date. No previous antitrust case, he said, had involved
H16 1150  2    interests of such magnitude or presented such complex
H16 1150 10    problems of relief. The submission of detailed plans
H16 1160  8    would place the issues before the court more readily
H16 1170  6    than would discussion of divestiture or disenfranchisement
H16 1180  3    in the abstract. The Court adopted this procedure with
H16 1190  2    an appropriate time schedule for carrying it out.
H16 1190 10       The Government submitted its proposed decree on
H16 1200  7    October 25, 1957. The plan called for divestiture by
H16 1210  6    du Pont of its 63,000,000 shares of General Motors
H16 1220  2    stock by equal annual distributions to its stockholders,
H16 1230  1    as a dividend, over a period of ten years. Christiana
H16 1230 11    Securities Company and Delaware Realty + Investment
H16 1240  6    Company, major stockholders in du Pont, and the stockholders
H16 1250  7    of Delaware were dealt with specially by provisions
H16 1260  3    requiring the annual sale by a trustee, again over
H16 1270  1    a ten-year period, of du Pont's General Motors stock
H16 1270 11    allocable to them, as well as any General Motors stock
H16 1280  9    which Christiana and Delaware owned outright. If, in
H16 1290  5    the trustee's judgment, "reasonable market conditions"
H16 1300  3    did not prevail during any given year, he was to be
H16 1310  2    allowed to petition the court for an extension of time
H16 1310 12    within the ten-year period. In addition, the right
H16 1320  8    to vote the General Motors stock held by du Pont was
H16 1330  7    to be vested in du Pont's stockholders, other than
H16 1340  3    Christiana and Delaware and the stockholders of Delaware;
H16 1350  1    du Pont, Christiana, and Delaware were to be enjoined
H16 1350 10    from acquiring stock in or exercising control over
H16 1360  7    General Motors; du Pont, Christiana, and Delaware were
H16 1370  5    to be prohibited to have any director or officer in
H16 1380  4    common with General Motors, and vice versa; and General
H16 1390  2    Motors and du Pont were to be ordered to terminate
H16 1390 12    any agreement that provided for the purchase by General
H16 1400  8    Motors of any specified percentage of its requirements
H16 1410  5    of any du Pont manufactured product, or for the grant
H16 1420  5    of exclusive patent rights, or for a grant by General
H16 1430  1    Motors to du Pont of a preferential right to make or
H16 1430 12    sell any chemical discovery of General Motors, or for
H16 1440  8    the maintenance of any joint commercial enterprise
H16 1450  4    by the two companies.
H16 1450  8       On motion of the amici curiae, the court directed
H16 1460  5    that a ruling be obtained from the Commissioner of
H16 1470  4    Internal Revenue as to the federal income tax consequences
H16 1480  2    of the Government's plan. On May 9, 1958, the Commissioner
H16 1490  1    announced his rulings. The annual dividends paid to
H16 1490  9    du Pont stockholders in shares of General Motors stock
H16 1500  8    would be taxable as ordinary income to the extent of
H16 1510  6    du Pont's earnings and profits. The measure, for federal
H16 1520  4    income tax purposes, of the dividend to individual
H16 1530  1    stockholders would be the fair market value of the
H16 1530 10    shares at the time of each annual distribution. In
H16 1540  6    the case of taxpaying corporate stockholders, the measure
H16 1550  3    would be the lesser of the fair market value of the
H16 1560  3    shares or du Pont's tax basis for them, which is approximately
H16 1570  1    $2.09 per share. The forced sale of the General Motors
H16 1570 11    stock owned by or allocable to Christiana, Delaware,
H16 1580  7    and the stockholders of Delaware, and deposited with
H16 1590  5    the trustee, would result in a tax to those parties
H16 1600  2    at the capital gains rate.
H16 1600  7       Du Pont's counterproposal was filed on May 14, 1958.
H16 1610  7    Under its plan du Pont would retain its General Motors
H16 1620  4    shares but be required to pass on to its stockholders
H16 1630  1    the right to vote those shares. Christiana and Delaware
H16 1630 10    would, in turn, be required to pass on the voting rights
H16 1640 11    to the General Motors shares allocable to them to their
H16 1650  7    own stockholders. Du Pont would be enjoined from having
H16 1660  5    as a director, officer, or employee anyone who was
H16 1670  3    simultaneously an officer or employee of General Motors,
H16 1670 11    and no director, officer, or employee of du Pont could
H16 1680 10    serve as a director of General Motors without court
H16 1690  6    approval. Du Pont would be denied the right to acquire
H16 1700  5    any additional General Motors stock except through
H16 1710  2    General Motors' distributions of stock or subscription
H16 1710  9    rights to its stockholders.
H16 1720  4       On June 6, 1958, General Motors submitted its objections
H16 1730  3    to the Government's proposal. It argued, inter alia,
H16 1740  2    that a divestiture order would severely depress the
H16 1740 10    market value of the stock of both General Motors and
H16 1750 10    du Pont, with consequent serious loss and hardship
H16 1760  5    to hundreds of thousands of innocent investors, among
H16 1770  3    them thousands of small trusts and charitable institutions;
H16 1780  1    that there would be a similar decline in the market
H16 1780 11    values of other automotive and chemical stocks, with
H16 1790  7    similar losses to the stockholders of those companies;
H16 1800  4    that the tremendous volume of General Motors stock
H16 1810  3    hanging over the market for ten years would hamper
H16 1810 12    the efforts of General Motors and other automobile
H16 1820  7    manufacturers to raise equity capital; and that all
H16 1830  6    this would have a serious adverse effect on the entire
H16 1840  4    stock market and on general business activity. General
H16 1850  1    Motors comprehensively contended that the Government
H16 1850  7    plan would not be "in the public interest" as required
H16 1860  9    by the mandate of this Court.
H16 1870  2       The decrees proposed by the amici curiae were filed
H16 1880  1    in August of 1958. These plans, like du Pont's contained
H16 1880 11    provisions for passing the vote on du Pont's General
H16 1890  9    Motors shares on to the ultimate stockholders of du
H16 1900  7    Pont, Christiana, and Delaware, except that officers
H16 1910  4    and directors of the three companies, their spouses,
H16 1920  1    and other people living in their households, as well
H16 1920 10    as other specified persons, were to be totally disenfranchised.
H16 1930  7    Both plans also prohibited common directors, officers,
H16 1940  4    or employees between du Pont, Christiana, and Delaware,
H16 1950  3    on the one hand, and General Motors on the other.
H17 0010  1    It is not a medieval mental quirk or an attitude "unnourished
H17 0010 12    by sense" to believe that husbands and wives should
H17 0020  8    not be subjected to such a risk, or that such a possibility
H17 0030  8    should not be permitted to endanger the confidentiality
H17 0040  3    of the marriage relationship. While it is easy enough
H17 0050  2    to ridicule Hawkins' pronouncement in Pleas of the
H17 0050 10    Crown from a metaphysical point of view, the concept
H17 0060  9    of the "oneness" of a married couple may reflect an
H17 0070  8    abiding belief that the communion between husband and
H17 0080  3    wife is such that their actions are not always to be
H17 0090  1    regarded by the criminal law as if there were no marriage.
H17 0100  1       By making inroads in the name of law enforcement
H17 0110  9    into the protection which Congress has afforded to
H17 0120  5    the marriage relationship, the Court today continues
H17 0130  2    in the path charted by the recent decision in Wyatt
H17 0140  1    v& United States, 362 U&S& 525, where the Court held
H17 0140 11    that, under the circumstances of that case, a wife
H17 0150  9    could be compelled to testify against her husband over
H17 0160  6    her objection. One need not waver in his belief in
H17 0170  4    virile law enforcement to insist that there are other
H17 0180  1    things in American life which are also of great importance,
H17 0180 11    and to which even law enforcement must accommodate
H17 0190  6    itself. One of these is the solidarity and the confidential
H17 0200  5    relationship of marriage. The Court's opinion dogmatically
H17 0210  3    asserts that the husband-wife conspiracy doctrine does
H17 0220  2    not in fact protect this relationship, and that hence
H17 0220 11    the doctrine "enthrone[s] an unreality into a rule
H17 0230  7    of law". I am not easily persuaded that a rule accepted
H17 0240  7    by so many people for so many centuries can be so lightly
H17 0250  5    dismissed. But in any event, I submit that the power
H17 0260  3    to depose belongs to Congress, not to this Court. I
H17 0260 13    dissent. Petitioner, who claims to be a conscientious
H17 0280  8    objector, was convicted of violating @ 12 (a) of the
H17 0290  8    Universal Military Training and Service Act by refusing
H17 0300  4    to be inducted into the armed forces. He claims that
H17 0310  2    he was denied due process of law in violation of the
H17 0310 13    Fifth Amendment, because (1) at a hearing before a
H17 0320  8    hearing officer of the Department of Justice, he was
H17 0330  5    not permitted to rebut statements attributed to him
H17 0340  3    by the local board, and (2) at the trial, he was denied
H17 0340 15    the right to have the hearing officer's report and
H17 0350  8    the original report of the Federal Bureau of Investigation
H17 0360  6    as to his claim. Held: On the record in this case,
H17 0370  7    the administrative procedures prescribed by the Act
H17 0380  4    were fully complied with; petitioner was not denied
H17 0380 12    due process; and his conviction is sustained. Pp& 60-66.
H17 0390 10    _(A)_
H17 0390 11       Petitioner was not denied due process in the administrative
H17 0400  9    proceedings, because the statement in question was
H17 0410  7    in his file, to which he had access, and he had opportunities
H17 0420  5    to rebut it both before the hearing officer of the
H17 0430  3    Department of Justice and before the appeal board.
H17 0430 11    Pp& 62-63.
H17 0440  3    _(B)_
H17 0450  1       Petitioner was not entitled to have the hearing
H17 0450  9    officer's notes and report, especially since he failed
H17 0460  8    to show any particular need for them and he did have
H17 0470  8    a copy of the Department of Justice's recommendation
H17 0480  2    to the appeal board. Pp& 63-64.
H17 0480  9    _(C)_
H17 0490  1       Petitioner was not entitled, either in the administrative
H17 0490  9    hearing at the Department of Justice or at his trial,
H17 0500  9    to inspect the original report of the Federal Bureau
H17 0510  5    of Investigation, since he was furnished a resume of
H17 0520  4    it, did not challenge its accuracy, and showed no particular
H17 0530  1    need for the original report. Pp& 64-66.
H17 0530  9       Haydn C& Covington argued the cause and filed a
H17 0540  8    brief for petitioner.
H17 0550  1       Daniel M& Friedman argued the cause for the United
H17 0550 10    States. On the brief were Solicitor General Rankin,
H17 0560  8    Assistant Attorney General Wilkey, Beatrice Rosenberg
H17 0570  5    and J& F& Bishop.
H17 0580  1       MR& JUSTICE CLARK delivered the opinion of the Court.
H17 0590  1       This is a prosecution for refusal to be inducted
H17 0590 10    into the armed services, in violation of the provisions
H17 0600  8    of the Universal Military Training and Service Act,
H17 0610  5    62 Stat& 604, 622, 50 U&S&C& App& @ 462 (a). Petitioner,
H17 0620  6    who claims to be a conscientious objector, contends
H17 0630  3    that he was denied due process, both in the proceedings
H17 0640  1    before a hearing officer of the Department of Justice
H17 0640 10    and at trial. He says that he was not permitted to
H17 0650 10    rebut before the hearing officer statements attributed
H17 0660  4    to him by the local board, and, further, that he was
H17 0670  4    denied at trial the right to have the Department of
H17 0670 14    Justice hearing officer's report and the original report
H17 0680  8    of the Federal Bureau of Investigation as to his claim-
H17 0690  8    all in violation of the Fifth Amendment. The trial
H17 0700  5    judge decided that the administrative procedures of
H17 0710  2    the Act were fully complied with and refused to require
H17 0720  1    the production of such documents. Petitioner was found
H17 0720  9    guilty and sentenced to 15 months' imprisonment. The
H17 0730  6    Court of Appeals affirmed. 269 F& 2d 613. We granted
H17 0740  7    certiorari in view of the importance of the questions
H17 0750  3    in the administration of the Act. 361 U& S& 899. We
H17 0760  2    have concluded that petitioner's claims are controlled
H17 0760  9    by the rationale of gonzales v& United States, 348
H17 0770  7    U&S& 407 (1955), and United States v& Nugent, 346 U&S&
H17 0780  8    1 (1953), and therefore affirm the judgment.
H17 0790  6       Petitioner registered with Local Board No& 9, Boulder,
H17 0800  6    Colorado, on March 17, 1952. His answers to the classification
H17 0810  5    questionnaire reflected that he was a minister of Jehovah's
H17 0820  4    Witnesses, employed at night by a sugar producer. He
H17 0830  2    claimed /4,-~D classification as a minister of religion,
H17 0840  1    devoting a minimum of 100 hours a month to preaching.
H17 0840 11    On November 13, 1952, he was classified in Class /1,-~A.
H17 0850 10    On November 22, 1952, he wrote the Board, protesting
H17 0860  7    this classification. He again stated that he was "a
H17 0870  5    regular minister"; that he was "devoting an average
H17 0880  1    of 100 hours a month to actual preaching publicly",
H17 0880 10    in addition to 50 to 75 hours in other ministerial
H17 0890  8    duties, and that he opposed war in any form. Thereafter
H17 0900  4    he was classified /1,-~O. On April 1, 1953, after some
H17 0910  3    six months of full-time "pioneering", petitioner discontinued
H17 0920  1    devoting 100 hours a month to preaching, but failed
H17 0920 10    to so notify his local board. In a periodic review,
H17 0930  9    the local board on July 30, 1953, reclassified him
H17 0940  5    /1,-~A and upheld this classification after a personal
H17 0950  4    appearance by petitioner, because of his willingness
H17 0960  1    to kill in defense of his church and home. Upon administrative
H17 0960 12    approval of the reclassification, he was ordered to
H17 0970  8    report for induction on June 11, 1956, but failed to
H17 0980  7    do so. He was not prosecuted, however, and his case
H17 0990  4    was subsequently reopened, in the light of Sicurella
H17 1000  1    v& United States, 348 U&S& 385 (1955). He was again
H17 1010  1    reclassified /1,-~A by the local board. There followed
H17 1010 10    a customary Department of Justice hearing, at which
H17 1020  7    petitioner appeared. In his report to the Attorney
H17 1030  6    General, the hearing officer suggested that the petitioner
H17 1040  3    be exempt only from combatant training and service.
H17 1050  1    On March 21, 1957, however, the Department recommended
H17 1050  9    approval of the /1,-~A classification. Its ground for
H17 1060  8    this recommendation was that, while petitioner claimed
H17 1070  5    before the local board August 17, 1956 (as evidenced
H17 1080  3    by its memorandum in his file of that date), that he
H17 1090  1    was devoting 100 hours per month to actual preaching,
H17 1090 10    the headquarters of the Jehovah's Witnesses reported
H17 1100  6    that he was no longer doing so and, on the contrary,
H17 1110  5    had relinquished both his Pioneer and Bible Student
H17 1120  2    Servant positions. It reported that he now devoted
H17 1120 10    only some 6-1/2 hours per month to public preaching
H17 1130  9    and from 20 to 25 hours per month to church activities.
H17 1140  5    His claim was therefore "so highly exaggerated", the
H17 1150  2    Department concluded, that it "cast doubt upon his
H17 1160  1    veracity and, consequently, upon his sincerity and
H17 1160  8    good faith". The appeal board furnished petitioner
H17 1170  5    a copy of the recommendation. In his answer thereto,
H17 1180  4    he advised the Board that he had made no such statement
H17 1190  1    in 1956, and asserted that his only claim to "pioneering"
H17 1200  1    was in 1952. The appeal board, however, unanimously
H17 1200  9    concurred in the Department's recommendation. Upon
H17 1210  4    return of the file to the local board, petitioner was
H17 1220  4    again ordered to report for induction and this prosecution
H17 1230  2    followed his failure to do so.
H17 1230  8       Petitioner first contends that the Department denied
H17 1240  5    him procedural due process by not giving him timely
H17 1250  3    opportunity, before its final recommendation to the
H17 1250 10    appeal board, to answer the statement of the local
H17 1260  9    board as to his claim of devoting 100 hours to actual
H17 1270  7    preaching. But the statement of the local board attributing
H17 1280  4    this claim to petitioner was in his file. He admitted
H17 1290  2    that he knew it was open to him at all times, and he
H17 1290 15    could have rebutted it before the hearing officer.
H17 1300  7    This he failed to do, asserting that he did not know
H17 1310  6    it to be in his file. Apparently he never took the
H17 1320  3    trouble to find out. Nevertheless he had ample opportunity
H17 1330  1    to contest the statement before the appeal board. After
H17 1330 10    the recommendation of the Department is forwarded to
H17 1340  7    the appeal board, that is the appropriate place for
H17 1350  4    a registrant to lodge his denial. This he did. We found
H17 1360  3    in Gonzales v& United States, supra, that this was
H17 1370  2    the controlling reason why copies of the recommendation
H17 1370 10    should be furnished a registrant. We said there that
H17 1380  8    it was necessary "that a registrant be given an opportunity
H17 1390  7    to rebut [the Department's] recommendation when it
H17 1400  4    comes to the Appeal Board, the agency with the ultimate
H17 1410  2    responsibility for classification". 348 U&S&, at 412.
H17 1420  1    We fail to see how such procedure resulted in any prejudice
H17 1420 12    to petitioner's contention, which was considered by
H17 1430  6    the appeal board and denied by it. As was said in Gonzales,
H17 1440  9    "it is the Appeal Board which renders the selective
H17 1450  5    service determination considered 'final' in the courts,
H17 1460  4    not to be overturned unless there is no basis in fact.
H17 1470  1    Estep v& United States, 327 U&S& 114". 348 U& S&, at
H17 1480  3    412-413.
H17 1480  5       But there are other contentions which might be considered
H17 1490  3    more difficult. At his trial, petitioner sought to
H17 1490 11    secure through subpoena duces tecum the longhand notes
H17 1500  8    of the Department's hearing officer, Evensen, as well
H17 1510  6    as his report thereon. Petitioner also claimed at trial
H17 1520  5    the right to inspect the original Federal Bureau of
H17 1530  3    Investigation reports to the Department of Justice.
H17 1540  1    He alleged no specific procedural errors or evidence
H17 1540  9    withheld; nor did he elaborate just what favorable
H17 1550  7    evidence the Federal Bureau of Investigation reports
H17 1560  3    might disclose.
H17 1560  5       Section 6 (~j) of the Act, as we have held, does
H17 1570  6    require the Department's recommendation to be placed
H17 1580  3    in a registrant's file. Gonzales v& United States,
H17 1590  1    supra. But there is nothing in the Act requiring the
H17 1590 11    hearing officer's report to be likewise turned over
H17 1600  8    to the registrant. While the regulations formerly required
H17 1610  5    that the hearing officer's report be placed in the
H17 1620  5    registrant's file, this requirement was eliminated
H17 1630  1    in 1952. Moreover, the hearing officer's report is
H17 1630  9    but intradepartmental, is directed to the Attorney
H17 1640  6    General and, of course, is not the recommendation of
H17 1650  4    the Department. It is not essentially different from
H17 1660  2    a memorandum of an attorney in the Department of Justice,
H17 1660 12    of which the Attorney General receives many, and to
H17 1670  9    which he may give his approval or rejection. It is
H17 1680  7    but part of the whole process within the Department
H17 1690  3    that goes into the making of the final recommendation
H17 1700  1    to the appeal board.
H17 1700  5       It is also significant that neither this report
H17 1710  2    nor the hearing officer's notes were furnished to the
H17 1710 11    appeal board. Hence the petitioner had full opportunity
H17 1720  8    to traverse the only conclusions of the Department
H17 1730  5    on file with the Board. Petitioner knew that the Department's
H17 1740  5    recommendation was based not on the hearing officer's
H17 1750  2    report but on the statement of the local board in his
H17 1760  1    file. Having had every opportunity to rebut the finding
H17 1760 10    of the local board before both the hearing officer
H17 1770  7    and the appeal board, petitioner cannot now claim that
H17 1780  5    he was denied due process because he did not succeed.
H17 1790  1       It appears to us that the same reasoning applies
H17 1790 10    to the production of the hearing officer's report and
H17 1800  8    notes at the trial. In addition, petitioner has failed
H17 1810  6    to show any particular need for the report and notes.
H17 1820  4    While there are now allegations of the withholding
H17 1830  1    of "favorable evidence developed at the hearing" and
H17 1830  9    a denial of a "full and fair hearing", no such claim
H17 1840  9    was made by petitioner at any stage of the administrative
H17 1850  6    process. Moreover, his testimony at trial never developed
H17 1860  4    any such facts. In the light of these circumstances,
H17 1870  1    as well as the fact that the issue at trial in this
H17 1870 13    respect centered entirely on the Department's recommendation,
H17 1880  6    which petitioner repudiated but which both the appeal
H17 1890  7    board and the courts below found supported by the record,
H17 1900  5    we find no relevancy in the hearing officer's report
H17 1910  2    and notes.
H17 1910  4       Finally petitioner says that he was entitled to
H17 1920  2    inspect the ~FBI report during the proceedings before
H17 1920 10    the hearing officer as well as at the trial. He did
H17 1930 11    receive a resume of it- the same that was furnished
H17 1940  6    the appeal board- and he made no claim of its inaccuracy.
H17 1950  5    Even now no such claim is asserted. He bases his present
H17 1960  3    contention on the general right to explore, indicating
H17 1960 11    that he hopes to find some discrepancy in the resume.
H17 1970 10    But this is fully answered by United States v& Nugent,
H17 1980  7    supra. There we held "that the statutory scheme for
H17 1990  6    review, within the selective service system, **h entitles
H17 2000  4    [conscientious objectors] to no guarantee that the
H17 2010  2    ~FBI reports must be produced for their inspection".
H17 2010 10    346 U&S&, at 5-6. Even if we were not bound by Nugent,
H17 2020 13    petitioner here would not be entitled to the report.
H17 2030  9    The recommendation of the Department- as well as the
H17 2040  7    decision of the appeal board- was based entirely on
H17 2050  4    the local board file, not on an ~FBI report.
H18 0010  1    #FOREIGN POLICY IN ITS TOTAL CONTEXT#
H18 0010  7    With this enlarged role in mind, I should like to make
H18 0020  7    a few suggestions: What we in the United States do
H18 0030  3    or do not do will make a very large difference in what
H18 0040  1    happens in the rest of the world. We in this Department
H18 0040 12    must think about foreign policy in its total context.
H18 0050  7    We cannot regard foreign policy as something left over
H18 0060  5    after defense policy or trade policy or fiscal policy
H18 0070  2    has been extracted. Foreign policy is the total involvement
H18 0080  1    of the American people with peoples and governments
H18 0080  9    abroad. That means that, if we are to achieve a new
H18 0090 10    standard of leadership, we must think in terms of the
H18 0100  6    total context of our situation. It is the concern of
H18 0110  2    the Department of State that the American people are
H18 0110 11    safe and secure- defense is not a monopoly concern
H18 0120  7    of the Department of Defense. It is also the concern
H18 0130  6    of the Department of State that our trading relationships
H18 0140  3    with the rest of the world are vigorous, profitable,
H18 0150  1    and active- this is not just a passing interest or
H18 0150 11    a matter of concern only to the Department of Commerce.
H18 0160  8    We can no longer rely on interdepartmental machinery
H18 0170  3    "somewhere upstairs" to resolve differences between
H18 0180  2    this and other departments. Assistant Secretaries of
H18 0190  1    State will now carry an increased burden of active
H18 0190 10    formulation and coordination of policies. Means must
H18 0200  5    be found to enable us to keep in touch as regularly
H18 0210  4    and as efficiently as possible with our colleagues
H18 0220  1    in other departments concerned with foreign policy.
H18 0220  8       I think we need to concern ourselves also with the
H18 0230  8    timeliness of action. Every policy officer cannot help
H18 0240  5    but be a planning officer. Unless we keep our eyes
H18 0250  3    on the horizon ahead, we shall fail to bring ourselves
H18 0250 13    on target with the present. The movement of events
H18 0260  8    is so fast, the pace so severe, that an attempt to
H18 0270  6    peer into the future is essential if we are to think
H18 0280  3    accurately about the present. If there is anything
H18 0280 11    which we can do in the executive branch of the Government
H18 0290 10    to speed up the processes by which we come to decisions
H18 0300  7    on matters on which we must act promptly, that in itself
H18 0310  5    would be a major contribution to the conduct of our
H18 0320  3    affairs. Action taken today is often far more valuable
H18 0320 12    than action taken several months later in response
H18 0330  7    to a situation then out of control.
H18 0340  2       There will of course be times for delay and inaction.
H18 0350  1    What I am suggesting is that when we delay, or when
H18 0350 12    we fail to act, we do so intentionally and not through
H18 0360  8    inadvertence or through bureaucratic or procedural
H18 0370  3    difficulties.
H18 0370  4       I also hope that we can do something about reducing
H18 0380  5    the infant mortality rate of ideas- an affliction of
H18 0390  2    all bureaucracies. We want to stimulate ideas from
H18 0390 10    the bottom to the top of the Department. We want to
H18 0400 10    make sure that our junior colleagues realize that ideas
H18 0410  5    are welcome, that initiative goes right down to the
H18 0420  4    bottom and goes all the way to the top. I hope no one
H18 0430  1    expects that only Presidential appointees are looked
H18 0430  8    upon as sources of ideas. The responsibility for taking
H18 0440  7    the initiative in generating ideas is that of every
H18 0450  6    officer in the Department who has a policy function,
H18 0460  1    regardless of rank.
H18 0460  4       Further, I would hope that we could pay attention
H18 0470  3    to little things. While observing the operations of
H18 0480  1    our Government in various parts of the world, I have
H18 0480 11    felt that in many situations where our policies were
H18 0490  6    good we have tended to ignore minor problems which
H18 0500  3    spoiled our main effort. To cite only a few examples:
H18 0510  1    The wrong man in the wrong position, perhaps even in
H18 0510 11    a junior position abroad, can be a source of great
H18 0520  8    harm to our policy; the attitudes of a U&N& delegate
H18 0530  5    who experiences difficulty in finding adequate housing
H18 0540  2    in New York City, or of a foreign diplomat in similar
H18 0550  1    circumstances in our Capital, can be easily be directed
H18 0550 10    against the United States and all that it stands for.
H18 0560  8    Dozens of seemingly small matters go wrong all over
H18 0570  6    the world. Sometimes those who know about them are
H18 0580  2    too far down the line to be able to do anything about
H18 0580 14    them. I would hope that we could create the recognition
H18 0590  9    in the Department and overseas that those who come
H18 0600  6    across little things going wrong have the responsibility
H18 0610  2    for bringing these to the attention of those who can
H18 0620  1    do something about them.
H18 0620  5       If the Department of State is to take primary responsibility
H18 0630  3    for foreign policy in Washington, it follows that the
H18 0640  3    ambassador is expected to take charge overseas. This
H18 0640 11    does not mean in a purely bureaucratic sense but in
H18 0650 10    an active, operational, interested, responsible fashion.
H18 0660  4    He is expected to know about what is going on among
H18 0670  5    the representatives of other agencies who are stationed
H18 0680  1    in his country. He is expected to supervise, to encourage,
H18 0680 11    to direct, to assist in any way he can. If any official
H18 0690 11    operation abroad begins to go wrong, we shall look
H18 0700  7    to the ambassador to find out why and to get suggestions
H18 0710  4    for remedial action.
H18 0710  7    #THE PROBLEMS OF A POLICY OFFICER#
H18 0720  1    It occurred to me that you might be interested in some
H18 0720 12    thoughts which I expressed privately in recent years,
H18 0730  8    in the hope of clearing up a certain confusion in the
H18 0740  7    public mind about what foreign policy is all about
H18 0750  4    and what it means, and of developing a certain compassion
H18 0760  1    for those who are carrying such responsibilities inside
H18 0760  9    Government. I tried to do so by calling to their attention
H18 0770 11    some of the problems that a senior departmental policy
H18 0780  6    officer faces. This means practically everybody in
H18 0790  3    this room. Whether it will strike home for you or not
H18 0800  1    will be for you to determine.
H18 0800  7       The senior policy officer may be moved to think
H18 0810  5    hard about a problem by any of an infinite variety
H18 0810 15    of stimuli: an idea in his own head, the suggestions
H18 0820 10    of a colleague, a question from the Secretary or the
H18 0830  8    President, a proposal by another department, a communication
H18 0840  4    from a foreign government or an American ambassador
H18 0850  2    abroad, the filing of an item for the agenda of the
H18 0850 13    United Nations or of any other of dozens of international
H18 0860 10    bodies, a news item read at the breakfast table, a
H18 0870  8    question to the President or the Secretary at a news
H18 0880  5    conference, a speech by a Senator or Congressman, an
H18 0890  2    article in a periodical, a resolution from a national
H18 0890 11    organization, a request for assistance from some private
H18 0900  8    American interests abroad, et cetera, ad infinitum.
H18 0910  5    The policy officer lives with his antennae alerted
H18 0920  2    for the questions which fall within his range of responsibility.
H18 0930  1       His first thought is about the question itself:
H18 0930  9    Is there a question here for American foreign policy,
H18 0940  9    and, if so, what is it? For he knows that the first
H18 0950  8    and sometimes most difficult job is to know what the
H18 0960  6    question is- that when it is accurately identified
H18 0970  1    it sometimes answers itself, and that the way in which
H18 0970 11    it is posed frequently shapes the answer.
H18 0980  5       Chewing it over with his colleagues and in his own
H18 0990  5    mind, he reaches a tentative identification of the
H18 1000  1    question- tentative because it may change as he explores
H18 1000  9    it further and because, if no tolerable answer can
H18 1010  8    be found, it may have to be changed into one which
H18 1020  4    can be answered.
H18 1020  7       Meanwhile he has been thinking about the facts surrounding
H18 1030  5    the problem, facts which he knows can never be complete,
H18 1040  4    and the general background, much of which has already
H18 1050  1    been lost to history. He is appreciative of the expert
H18 1050 11    help available to him and draws these resources into
H18 1060  8    play, taking care to examine at least some of the raw
H18 1070  7    material which underlies their frequently policy-oriented
H18 1080  3    conclusions. He knows that he must give the expert
H18 1080 12    his place, but he knows that he must also keep him
H18 1090 11    in it.
H18 1090 13       He is already beginning to box the compass of alternative
H18 1100  9    lines of action, including doing nothing. He knows
H18 1110  6    that he is thinking about action in relation to a future
H18 1120  5    which can be perceived but dimly through a merciful
H18 1130  1    fog. But he takes his bearings from the great guidelines
H18 1130 11    of policy, well-established precedents, the commitments
H18 1140  6    of the United States under international charters and
H18 1150  5    treaties, basic statutes, and well-understood notions
H18 1160  2    of the American people about how we are to conduct
H18 1170  1    ourselves, in policy literature such as country papers
H18 1170  9    and National Security Council papers accumulated in
H18 1180  5    the Department.
H18 1180  7       He will not be surprised to find that general principles
H18 1190  9    produce conflicting results in the factual situation
H18 1200  6    with which he is confronted. He must think about which
H18 1210  4    of these principles must take precedence. He will know
H18 1220  2    that general policy papers written months before may
H18 1220 10    not fit his problem because of crucial changes in circumstance.
H18 1230  8    He is aware that every moderately important problem
H18 1240  5    merges imperceptibly into every other problem. He must
H18 1250  4    deal with the question of how to manage a part when
H18 1260  2    it cannot be handled without relation to the whole-
H18 1260 11    when the whole is too large to grasp.
H18 1270  6       He must think of others who have a stake in the
H18 1280  4    question and in its answer. Who should be consulted
H18 1280 13    among his colleagues in the Department or other departments
H18 1290  9    and agencies of the Government? Which American ambassadors
H18 1300  7    could provide helpful advice? Are private interests
H18 1310  5    sufficiently involved to be consulted? What is the
H18 1320  4    probable attitude of other governments, including those
H18 1330  2    less directly involved? How and at what stage and in
H18 1330 12    what sequence are other governments to be consulted?
H18 1340  7       If action is indicated, what kind of action is relevant
H18 1350  7    to the problem? The selection of the wrong tools can
H18 1360  6    mean waste, at best, and at worst an unwanted inflammation
H18 1370  2    of the problem itself. Can the President or the Secretary
H18 1380  1    act under existing authority, or will new legislation
H18 1380  9    and new money be required? Should the action be unilateral
H18 1390  8    or multilateral? Is the matter one for the United Nations
H18 1400  9    or some other international body? For, if so, the path
H18 1410  7    leads through a complex process of parliamentary diplomacy
H18 1420  2    which adds still another dimension to the problem.
H18 1430  1    #RESPECT FOR THE OPINIONS OF MANKIND#
H18 1430  7    What type of action can hope to win public support,
H18 1440  6    first in this country and then abroad? For the policy
H18 1450  4    officer will know that action can almost never be secret
H18 1460  1    and that in general the effectiveness of policy will
H18 1460 10    be conditioned by the readiness of the country to sustain
H18 1470  9    it. He is interested in public opinion for two reasons:
H18 1480  6    first, because it is important in itself, and, second,
H18 1490  3    because he knows that the American public cares about
H18 1500  1    a decent respect for the opinions of mankind. And,
H18 1500 10    given probable public attitudes- about which reasonably
H18 1510  6    good estimates can be made- what action is called for
H18 1520  8    to insure necessary support?
H18 1520 12       May I add a caution on this particular point? We
H18 1530 10    do not want policy officers below the level of Presidential
H18 1540  7    appointees to concern themselves too much with problems
H18 1550  5    of domestic politics in recommending foreign policy
H18 1560  2    action. In the first place our business is foreign
H18 1560 11    policy, and it is the business of the Presidential
H18 1570  9    leadership and his appointees in the Department to
H18 1580  5    consider the domestic political aspects of a problem.
H18 1590  3    Mr& Truman emphasized this point by saying, "You fellows
H18 1600  1    in the Department of State don't know much about domestic
H18 1600 11    politics".
H18 1610  1       This is an important consideration. If we sit here
H18 1620  1    reading editorials and looking at public-opinion polls
H18 1620  9    and other reports that cross our desks, we should realize
H18 1630  8    that this is raw, undigested opinion expressed in the
H18 1640  5    absence of leadership. What the American people will
H18 1650  3    do turns in large degree on their leadership. We cannot
H18 1660  1    test public opinion until the President and the leaders
H18 1660 10    of the country have gone to the public to explain what
H18 1670  9    is required and have asked them for support for the
H18 1680  5    necessary action. I doubt, for example, that, 3 months
H18 1690  3    before the leadership began to talk about what came
H18 1690 12    to be the Marshall plan, any public-opinion expert
H18 1700  7    would have said that the country would have accepted
H18 1710  4    such proposals.
H18 1710  6       The problem in the policy officer's mind thus begins
H18 1720  6    to take shape as a galaxy of utterly complicated factors-
H18 1730  3    political, military, economic, financial, legal, legislative,
H18 1740  2    procedural, administrative- to be sorted out and handled
H18 1750  1    within a political system which moves by consent in
H18 1750 10    relation to an external environment which cannot be
H18 1760  7    under control.
H18 1760  9       And the policy officer has the hounds of time snapping
H18 1770  9    at his heels.
H19 0010  1       While there should be no general age limit or restriction
H19 0010 11    to one sex, there will be particular projects requiring
H19 0020  8    special maturity and some open only to men or to women.
H19 0030  9    The Peace Corps should not pay the expenses of a wife
H19 0040  6    or family, unless the wife is also accepted for full-time
H19 0050  3    Peace Corps work on the same project.
H19 0050 10       There should be no draft exemption because of Peace
H19 0060  8    Corps service. In most cases service in the Corps will
H19 0070  6    probably be considered a ground for temporary deferment.
H19 0080  2       Peace Corps volunteers obviously should not be paid
H19 0090  3    what they might earn in comparable activities in the
H19 0090 12    United States. Nor would it be possible in many cases
H19 0100 10    for them to live in health or any effectiveness on
H19 0110  6    what their counterparts abroad are paid. The guiding
H19 0120  3    principle indeed should not be anything like compensation
H19 0130  1    for individual services.
H19 0130  4       Rather the principle should be akin to that of the
H19 0140  5    allowance. Peace Corps volunteers should be given just
H19 0150  2    enough to provide a minimum decent standard of living.
H19 0150 11    They should live in modest circumstances, avoiding
H19 0160  6    all conspicuous consumption. Wherever possible they
H19 0170  4    should live with their host country counterparts. Some
H19 0180  2    special health requirements might have to be met. For
H19 0180 11    example, it probably will be necessary for the Corps
H19 0190  9    to have authority to pay medical expenses of volunteers.
H19 0200  6    Perhaps existing Public Health Service, State Department
H19 0210  4    and Armed Services medical facilities can be utilized.
H19 0220  4       For readjustment to the U&S&, volunteers should
H19 0230  2    be given some separation allowance at the end of their
H19 0230 12    overseas service, based on the length of time served.
H19 0240  9    #7. IN WHAT PART OF THE GOVERNMENT SHOULD THE PEACE
H19 0250  6    CORPS BE ESTABLISHED?#
H19 0250  9    The idea of a Peace Corps has captured the imagination
H19 0260  9    of a great many people. Support for it cuts across
H19 0270  6    party, regional, ethnic and other lines. The Peace
H19 0280  3    Corps, therefore, offers an opportunity to add a new
H19 0280 12    dimension to our approach to the world- an opportunity
H19 0290  9    for the American people to think anew and start afresh
H19 0300  8    in their participation in world development.
H19 0310  2       For this, the Peace Corps should be administered
H19 0320  1    by a small, new, alive agency operating as one component
H19 0320 11    in our whole overseas operation.
H19 0330  3       Pending the reorganization of our foreign aid structure
H19 0340  3    and program, the Peace Corps should be established
H19 0350  1    as an agency in the Department of State. When the aid
H19 0350 12    operations are reorganized the Peace Corps should remain
H19 0360  7    a semi-autonomous, functional unit. Meanwhile, the
H19 0370  4    Peace Corps could be physically located in ~ICA's facilities
H19 0380  4    and depend on the State Department and ~ICA for administrative
H19 0390  4    support and, when needed, program assistance.
H19 0400  1       In this way the Peace Corps can be launched with
H19 0400 11    its own identity and spirit and yet receive the necessary
H19 0410  9    assistance from those now responsible for United States
H19 0420  6    foreign policy and our overseas operations.
H19 0430  2    #8. HOW AND WHEN SHOULD THE PEACE CORPS BE LAUNCHED?#
H19 0440  1    The Peace Corps can either begin in very low gear,
H19 0440 11    with only preparatory work undertaken between now and
H19 0450  6    when Congress finally appropriates special funds for
H19 0460  4    it- or it can be launched now and in earnest by executive
H19 0470  3    action, with sufficient funds and made available from
H19 0480  1    existing Mutual Security appropriations to permit a
H19 0480  8    number of substantial projects to start this summer.
H19 0490  6       The Peace Corps should be launched soon so that
H19 0500  6    the opportunity to recruit the most qualified people
H19 0510  2    from this year's graduating classes will not be lost.
H19 0510 11    Nor should we lose the opportunity to use this summer
H19 0520 10    for training on university campuses.
H19 0530  2       If launched in a careful but determined way within
H19 0540  1    the next few weeks, the Peace Corps could have several
H19 0540 11    hundred persons in training this summer for placement
H19 0550  8    next Fall. Within a year or two several thousand might
H19 0560  6    be in service. It can then grow steadily as it proves
H19 0570  4    itself and as the need for it is demonstrated.
H19 0570 13    #9. WHAT WOULD THE FIRST PROJECTS BE?#
H19 0580  7    In the first year there should probably be considerable
H19 0590  4    emphasis on teaching projects. The need here is most
H19 0600  3    clearly felt and our capacity to recruit and train
H19 0600 12    qualified volunteers in a short period of time is greatest.
H19 0610 10       There would, however, be a variety of other skills-
H19 0620  8    medical, agricultural, engineering- which would be
H19 0630  6    called for in the first year through the private agency
H19 0640  2    programs and through the provision of technician helpers
H19 0650  1    to existing development projects.
H19 0650  5       The first year's projects should also be spread
H19 0660  5    through several countries in Latin America, Africa
H19 0670  2    and Asia.
H19 0670  4    #10. HOW WILL THE PEACE CORPS BE RECEIVED ABROAD?#
H19 0680  1    Although the need for outside trained manpower exists
H19 0680  9    in every newly developing nation, the readiness to
H19 0690  7    receive such manpower, or to receive it from the United
H19 0700  6    States will vary from country to country. A certain
H19 0710  3    skepticism about the coming of Americans is to be expected
H19 0720  1    in many quarters. Unfriendly political groups will
H19 0720  8    no doubt do everything in their power to promote active
H19 0730  7    hostility. But there are indications that many developing
H19 0740  4    nations will welcome Peace Corps volunteers, and that
H19 0750  3    if the volunteers are well chosen, they will soon demonstrate
H19 0760  1    their value and make many friends.
H19 0760  7       It is important, however, that the Peace Corps be
H19 0770  6    advanced not as an arm of the Cold War but as a contribution
H19 0780  5    to the world community. In presenting it to other governments
H19 0790  3    and to the United Nations, we could propose that every
H19 0800  2    nation consider the formation of its own peace corps
H19 0800 11    and that the United Nations sponsor the idea and form
H19 0810  8    an international coordinating committee. We should
H19 0820  4    hope that peace corps projects will be truly international
H19 0830  2    and that our citizens will find themselves working
H19 0830 10    alongside citizens of the host country and also volunteers
H19 0840  9    from other lands. In any case, our Peace Corps personnel
H19 0850  8    should be offered as technician helpers in development
H19 0860  4    projects of the U&N& and other international agencies.
H19 0870  2       The Peace Corps is not a diplomatic or propaganda
H19 0880  2    venture but a genuine experiment in international partnership.
H19 0890  1    Our aim must be to learn as much as we teach. The Peace
H19 0890 14    Corps offers an opportunity to bring home to the United
H19 0900 10    States the problems of the world as well as an opportunity
H19 0910  9    to meet urgent host country needs for trained manpower.
H19 0920  5    If presented in this spirit, the response and the results
H19 0930  4    will be immeasurably better.
H19 0930  8    #11. HOW WILL IT BE FINANCED?#
H19 0940  2    The already appropriated funds within the discretion
H19 0940  9    of the President and Secretary of State under the Mutual
H19 0950 10    Security Act are the only immediately available source
H19 0960  8    of financing this summer's pilot programs of the Peace
H19 0970  6    Corps. If it is decided to make a small shift which
H19 0980  4    may be required from military aid or special assistance
H19 0990  1    funds, in order to carry out the purposes of the Mutual
H19 0990 12    Security Act through this new peaceful program, this
H19 1000  8    will be a hopeful sign to the world. Congress should
H19 1010  6    then be asked to give the Peace Corps a firm legislative
H19 1020  4    foundation for the next fiscal year.
H19 1020 10       Specifically, Congress should consider authorizing
H19 1030  5    the Peace Corps to receive contributions from American
H19 1040  4    businesses, unions, civic organizations and the public
H19 1050  4    at large. For this must be the project of the whole
H19 1060  1    American people. An Advisory Council of outstanding
H19 1060  8    public figures with experience in world affairs should
H19 1070  7    be formed to give the program continuing guidance and
H19 1080  4    to afford a focal point for public understanding.
H19 1090  1       Steps should also be taken to link the Food for
H19 1090 11    Peace Program with the Peace Corps, so that foreign
H19 1100  9    currencies accumulated by the sale of U&S& surplus
H19 1110  7    food under P&L& 480 can be put to use to pay some of
H19 1120  8    the host country expenses of Peace Corps personnel.
H19 1130  2       The extent to which participating bodies such as
H19 1130 10    U& S& voluntary agencies, universities, international
H19 1140  6    organizations, and the host country or institutions
H19 1150  7    in the host country can and should share the cost of
H19 1160  5    the Peace Corps programs must be fully explored.
H19 1170  1    #12. IS IT WORTH THE COST AND THE RISKS?#
H19 1170 10    No matter how well conceived and efficiently run, there
H19 1180  6    probably will be failures. These could be costly and
H19 1190  5    have a serious effect both at home and abroad.
H19 1200  1       But as the popular response suggests, the potentiality
H19 1200  9    of the Peace Corps is very great. It can contribute
H19 1210  9    to the development of critical countries and regions.
H19 1220  5    It can promote international cooperation and good will
H19 1230  4    toward this country. It can also contribute to the
H19 1240  1    education of America and to more intelligent American
H19 1240  9    participation in the world.
H19 1250  4       With thousands of young Americans going to work
H19 1260  1    in developing areas, millions of Americans will become
H19 1260  9    more directly involved in the world than ever before.
H19 1270  8       With colleges and universities carrying a large
H19 1280  4    part of the program, and with students looking toward
H19 1290  2    Peace Corps service, there will be an impact on educational
H19 1300  1    curriculum and student seriousness. The letters home,
H19 1300  8    the talks later given by returning members of the Peace
H19 1310  8    Corps, the influence on the lives of those who spend
H19 1320  7    two or three years in hard work abroad- all this may
H19 1330  6    combine to provide a substantial popular base for responsible
H19 1340  1    American policies toward the world. And this is meeting
H19 1340 10    the world's need, too, since what the world most needs
H19 1350  9    from this country is better understanding of the world.
H19 1360  7       The Peace Corps thus can add a new dimension to
H19 1370  6    America's world policy- one for which people here and
H19 1380  3    abroad have long been waiting. As you said in your
H19 1380 13    State of the Union message. "The problems **h are towering
H19 1390 10    and unprecedented- and the response must be towering
H19 1400  9    and unprecedented as well".
H19 1420  1    #TO THE CONGRESS OF THE UNITED STATES:#
H19 1420  8    I recommend to the Congress the establishment of a
H19 1430  5    permanent Peace Corps- a pool of trained American men
H19 1440  3    and women sent overseas by the U&S& Government or through
H19 1450  3    private organizations and institutions to help foreign
H19 1460  1    countries meet their urgent needs for skilled manpower.
H19 1460  9       I have today signed an Executive Order establishing
H19 1470  8    a Peace Corps on a temporary pilot basis.
H19 1480  5       The temporary Peace Corps will be a source of information
H19 1490  5    and experience to aid us in formulating more effective
H19 1500  2    plans for a permanent organization. In addition, by
H19 1500 10    starting the Peace Corps now we will be able to begin
H19 1510 11    training young men and women for overseas duty this
H19 1520  6    summer with the objective of placing them in overseas
H19 1530  3    positions by late fall. This temporary Peace Corps
H19 1530 11    is being established under existing authority in the
H19 1540  8    Mutual Security Act and will be located in the Department
H19 1550  9    of State. Its initial expenses will be paid from appropriations
H19 1560  6    currently available for our foreign aid program.
H19 1570  3       Throughout the world the people of the newly developing
H19 1580  2    nations are struggling for economic and social progress
H19 1580 10    which reflects their deepest desires. Our own freedom,
H19 1590  8    and the future of freedom around the world, depend,
H19 1600  7    in a very real sense, on their ability to build growing
H19 1610  4    and independent nations where men can live in dignity,
H19 1620  1    liberated from the bonds of hunger, ignorance and poverty.
H19 1630  1       One of the greatest obstacles to the achievement
H19 1630  9    of this goal is the lack of trained men and women with
H19 1640  9    the skill to teach the young and assist in the operation
H19 1650  5    of development projects- men and women with the capacity
H19 1660  3    to cope with the demands of swiftly evolving economics,
H19 1670  1    and with the dedication to put that capacity to work
H19 1670 11    in the villages, the mountains, the towns and the factories
H19 1680  8    of dozens of struggling nations.
H19 1690  1       The vast task of economic development urgently requires
H19 1700  1    skilled people to do the work of the society- to help
H19 1700 12    teach in the schools, construct development projects,
H19 1710  5    demonstrate modern methods of sanitation in the villages,
H19 1720  5    and perform a hundred other tasks calling for training
H19 1730  3    and advanced knowledge.
H19 1730  6       To meet this urgent need for skilled manpower we
H19 1740  5    are proposing the establishment of a Peace Corps- an
H19 1750  2    organization which will recruit and train American
H19 1750  9    volunteers, sending them abroad to work with the people
H19 1760  9    of other nations.
H19 1770  1       This organization will differ from existing assistance
H19 1770  8    programs in that its members will supplement technical
H19 1780  8    advisers by offering the specific skills needed by
H19 1790  5    developing nations if they are to put technical advice
H19 1800  2    to work. They will help provide the skilled manpower
H19 1800 11    necessary to carry out the development projects planned
H19 1810  8    by the host governments, acting at a working level
H19 1820  6    and serving at great personal sacrifice. There is little
H19 1830  4    doubt that the number of those who wish to serve will
H19 1840  2    be far greater than our capacity to absorb them.
H20 0010  1    _WILDLIFE HABITAT RESOURCES_
H20 0010  4       In 1960 one-quarter of the 92.5 million recreation
H20 0020  2    visits to the National Forests and Grasslands were
H20 0020 10    for the primary purpose of hunting and fishing. Hunter
H20 0030  9    and fisherman visits since 1949 have increased 8 times
H20 0040  7    faster than the nationwide sale of hunting and fishing
H20 0050  5    licenses. This use is expected to increase to about
H20 0060  2    50 million visits by 1972. The long-range objective
H20 0060 11    of habitat management is to make it fully productive
H20 0070  8    so as to support fish and game populations to contribute
H20 0080  5    to the need for public use and enjoyment.
H20 0090  1       The wildlife habitat management proposals for the
H20 0090  8    10-year period are:
H20 0100  2    _1._
H20 0100  3       Revise and complete wildlife habitat management
H20 0110  1    and improvement plans for all administrative units,
H20 0110  8    assuring proper coordination between wildlife habitat
H20 0120  4    management and other resources.
H20 0130  1    _2._
H20 0130  1       Inventory and evaluate wildlife habitat resources
H20 0130  7    in cooperation with other Federal agencies and with
H20 0140  7    the States in which National Forests and Grasslands
H20 0150  4    are located, as a basis for orderly development of
H20 0160  2    wildlife habitat improvement and coordination programs,
H20 0160  8    including (a) big-game, gamebird, and small-game habitat
H20 0170  9    surveys and investigations on the 186 million acres
H20 0180  6    of National Forests and Grasslands, (b) fishery habitat
H20 0190  4    surveys and investigations on the 81,000 miles of National
H20 0200  3    Forest fishing streams and nearly 3 million acres of
H20 0200 12    lakes and impoundments, and (c) participation in planning,
H20 0210  8    inspection, and control phases of all habitat improvement,
H20 0220  7    land- and water-use projects conducted on National
H20 0230  4    Forest lands by States, other Federal agencies, and
H20 0240  2    private groups to assure that projects will benefit
H20 0240 10    wildlife and be in harmony with other resource values.
H20 0250  9    _3._
H20 0250 10       Improve food and cover on 1.5 million acres of key
H20 0260  9    wildlife areas.
H20 0260 11    _4._
H20 0260 12       Develop wildlife openings, food patches, and game
H20 0270  7    ways in dense vegetation by clearing or controlled
H20 0280  5    burning on 400,000 acres.
H20 0280  9    _5._
H20 0280 10       Improve 7,000 miles of fishing streams and 56,000
H20 0290  8    acres of lakes by stabilizing banks, planting streamside
H20 0300  4    cover, and constructing channel improvements.
H20 0310  1    #PROTECTION#
H20 0310  2    The total adverse impact of disease, insects, fire,
H20 0320  2    weather, destructive animals, and other forces on the
H20 0320 10    uses and values of forest resources is not generally
H20 0330  8    recognized. They kill and destroy, retard or prevent
H20 0340  5    reproduction and growth, impair and damage values,
H20 0350  2    and disrupt uses.
H20 0350  5       The loss in growth of sawtimber because of damage
H20 0360  3    by destructive agencies in the United States in 1952
H20 0370  1    was estimated to be about 44 billion board feet. If
H20 0370 11    it were not for the effect of destructive agencies,
H20 0380  5    sawtimber growth would have been nearly twice as great
H20 0390  4    as the 47 billion board feet in 1952. About 45 percent
H20 0400  1    of the loss in growth was attributable to disease,
H20 0400 10    20 percent to insects, 17 percent to fire, and 18 percent
H20 0410  9    to weather, animals, and various other causes.
H20 0420  4       These destructive forces also have a seriously adverse
H20 0430  2    effect upon the watersheds and their life-supporting
H20 0430 10    waterflows, and upon the other renewable forest resources.
H20 0440  8       The long-range objective is to hold the damage from
H20 0450  8    destructive agencies below the level which would seriously
H20 0460  6    interfere with intensive management of the National
H20 0470  4    Forest System under principles of multiple use and
H20 0480  1    high-level sustained yield of products and services.
H20 0480  9    This can be accomplished substantially by a continued
H20 0490  5    trend toward better facilities and techniques for fire
H20 0500  5    control and more resources to cope with critical fire
H20 0510  2    periods, and a more intensive application of a program
H20 0510 11    of prevention, detection, and control of insect and
H20 0520  7    disease infestations. In addition to direct protection
H20 0530  5    measures, more intensive management of timber resources
H20 0540  3    will assist in reduction of losses from insects and
H20 0550  1    disease.
H20 0550  2    _PROTECTION FROM INSECTS AND DISEASE_
H20 0550  7       In the 10-year period, it is proposed that insect
H20 0560  6    and disease control on the National Forest System be
H20 0570  3    stepped up to a level of prevention, detection, and
H20 0580  1    control of insect and disease infestations that will
H20 0580  9    substantially reduce the occurrence of large infestations
H20 0590  6    toward the end of the initial period. This will require
H20 0600  5    about a 40 percent increase over the present level
H20 0610  2    of protection. The work will consist of:
H20 0610  9    _1._
H20 0610 10       Intensification of present activities through (a)
H20 0620  6    quicker, more extensive, and more thorough surveys
H20 0630  4    to detect incipient outbreaks; (b) more reliable evaluation
H20 0640  2    of the potential of initial outbreaks to cause widespread
H20 0650  1    damage; (c) quicker and more effective control action
H20 0650  9    in the initial stages to prevent a large-scale epidemic.
H20 0660  8    The initial suppression activities would cover about
H20 0670  5    twice the acreage currently being treated.
H20 0680  1    _2._
H20 0680  2       Continuation of present blister rust control work
H20 0680  9    plus extension of control to 250,000 acres not now
H20 0690  8    protected but which should be managed for white pine
H20 0700  6    production. The objective is to achieve sufficient
H20 0710  1    effectiveness of control on all of the area now under
H20 0710 11    treatment plus the additional acres so that after the
H20 0720  9    initial period only maintenance control will be needed.
H20 0730  5    _3._
H20 0730  6       Initiating a program to control dwarfmistletoe on
H20 0740  3    several hundred thousand acres of selected better stands
H20 0750  2    of young softwood sawtimber on better growing sites.
H20 0760  1    _4._
H20 0760  1       Coordination of pest control objectives with timber
H20 0760  8    management activities to reduce losses.
H20 0770  4    _PROTECTION FROM FIRE_
H20 0770  7       It is proposed that in 10 years all commercial timberlands,
H20 0790  6    all critical watersheds, and other lands in the National
H20 0800  6    Forest System developed or proposed for intensive use
H20 0810  3    will be given protection from fire adequate to meet
H20 0810 12    the fire situation in the worst years and under serious
H20 0820 10    peak loads. This will include 125 million acres compared
H20 0830  7    with 23 million acres now receiving such protection.
H20 0840  3    An additional 15 million acres will be given a lesser
H20 0850  3    degree of protection but adequate to meet the average
H20 0850 12    fire situation.
H20 0860  1       Meeting these levels of protection from fire calls
H20 0860  9    for:
H20 0870  1    _1._
H20 0870  2       Expansion, modernization, and development of fire
H20 0870  8    control to a proficiency and strength of force which
H20 0880  9    will prevent as many fires as possible and suppress
H20 0890  6    fires before they spread beyond permitted standards.
H20 0900  2    This is to be accomplished by nearly doubling the present
H20 0910  1    level of preventive effort, detection, skilled fire-fighting
H20 0910  9    crews, and equipment use. This will include a stepped-up
H20 0920 10    program of training and development of personnel.
H20 0930  5    _2._
H20 0930  6       Adoption and use of new and modern techniques being
H20 0940  4    developed for prevention, for suppression of fires
H20 0950  1    while small, and for stopping large fires while running
H20 0950 10    and burning intensely.
H20 0960  2    _3._
H20 0960  3       Reduction of hazardous fuel conditions to minimize
H20 0970  1    the chances of large fires developing and spreading
H20 0970  9    to high-value areas. This work will cover the most
H20 0980  8    serious one-fourth of all land needing such treatment,
H20 0990  4    and will consist of burning 250,000 acres of highly
H20 1000  1    hazardous debris concentration, felling snags on 350,000
H20 1000  8    acres of high lightning-occurrence areas, prescribed
H20 1010  6    burning on 3.5 million acres, removing roadside fuel
H20 1020  4    on 39,000 acres, and clearing and maintaining 11,000
H20 1030  2    miles of firebreaks.
H20 1030  5    _PROTECTION FROM OTHER DAMAGE_
H20 1030  9       Rodent control work for the 10-year period will
H20 1040  9    be aimed at control of the most serious infestations
H20 1050  5    of harmful rodents, such as porcupines and mice, on
H20 1060  4    high-value areas of forage and commercial timberlands.
H20 1060 12    These areas comprise about half of the total area of
H20 1070 10    rodent infestation on the National Forests. Approximately
H20 1080  6    1.8 million acres of rangelands and 9.4 million acres
H20 1090  5    of timberlands would be treated in this period. Control
H20 1100  2    would be limited to those rodents for which economical
H20 1100 11    means of control are known.
H20 1110  5    #ROADS AND TRAILS#
H20 1110  8    The transportation system which serves the National
H20 1120  6    Forests is a complex of highways and access roads and
H20 1130  4    trails under various ownerships and jurisdictions.
H20 1140  1    This system is divided into a forest highway system,
H20 1140 10    administered by the Secretary of Commerce, and a forest
H20 1150  8    development road and trail system, administered by
H20 1160  3    the Secretary of Agriculture. Both of these systems
H20 1170  2    are essential for the production, development, and
H20 1170  9    use of the National Forests.
H20 1190  2       In the forest highway system, there are now 24,400
H20 1200  2    miles of public roads. These are mostly through highways
H20 1200 11    that carry traffic going from one destination to another.
H20 1210  9    Because administration of the forest highway system
H20 1220  6    is a responsibility of the Secretary of Commerce with
H20 1230  4    maintenance provided by the States and counties, this
H20 1240  2    Development Program for the National Forests does not
H20 1240 10    include estimates of the funds needed to maintain the
H20 1250  9    forest highway system nor to construct the additions
H20 1260  6    to its that are needed. It is estimated that about
H20 1270  3    70,000 miles of forest highways will eventually be
H20 1270 11    needed to fully serve the National Forests.
H20 1280  7       In the forest development road and trail system,
H20 1290  5    there are now 162,400 miles of roads and 106,500 miles
H20 1300  3    of supplemental foot and horse trails. These roads
H20 1300 11    are largely of less than highway standards, and usually
H20 1310  9    carry traffic which is related to use of the National
H20 1320  8    Forests. Construction and maintenance of this system
H20 1330  4    is a responsibility of the Secretary of Agriculture.
H20 1340  1    It is estimated that about 542,250 miles of forest
H20 1340 10    development roads, and 80,000 miles of trails, constitute
H20 1350  8    the system that will eventually be needed to obtain
H20 1360  5    the maximum practicable yield and use of the wood,
H20 1370  3    water, forage, and wildlife and recreation resources
H20 1370 10    of the National Forests on a continuing basis.
H20 1380  7       The ultimate trail system will be of value primarily
H20 1390  6    for recreation and wildlife utilization and fire protection.
H20 1400  4    It will be carefully planned to maintain optimum service
H20 1410  2    to these important resources and watersheds.
H20 1410  8       The presence or lack of access by road or trail
H20 1420  9    has a direct and controlling influence on all phases
H20 1430  5    of forest management and utilization such as:
H20 1440  1    _(A)_
H20 1440  2       the protection of forage, timber, and wildlife resources
H20 1450  1    from fire, insects, and disease;
H20 1450  6    _(B)_
H20 1450  7       the balanced use of recreation, hunting, and fishing
H20 1460  4    areas;
H20 1460  5    _(C)_
H20 1460  6       the volume of timber that can be marketed, especially
H20 1470  5    for small sales and the support of dependent communities
H20 1480  2    and small business enterprises;
H20 1480  6    _(D)_
H20 1480  7       the level of salvage cutting in dead and dying timber
H20 1490  9    stands and the opportunity to promptly salvage losses
H20 1500  5    resulting from fire, windstorm, insects, and disease;
H20 1510  3    _(E)_
H20 1510  4       the protection of watershed lands from erosion and
H20 1520  2    overgrazing by animals.
H20 1520  5       The existence of road systems permits an intensity
H20 1530  4    of management and use for all National Forest purposes
H20 1540  1    that is not otherwise possible. Furthermore, roads
H20 1540  8    that give access to National Forest timber are investments
H20 1550  8    which pay their own way over a period of years. Use
H20 1560  8    of these roads by the public results in substantial
H20 1570  3    benefits to the localities the roads serve.
H20 1570 10       The long-range objective of this Department is to
H20 1580  9    provide and maintain a system of forest development
H20 1590  6    roads and trails which will adequately service the
H20 1600  3    National Forest System at the levels needed to meet
H20 1600 12    expected needs and optimum production of products and
H20 1610  8    services. For the year 2000 this means servicing (a)
H20 1620  7    the protection requirements of a watershed producing
H20 1630  2    at least 200 million acre-feet of water each year,
H20 1630 12    (b) recreation and wildlife resources used each year
H20 1640  8    by 635 million visitors, (c) a timber resource supporting
H20 1650  6    an annual cut of 21 billion board feet, and (d) 60
H20 1660  5    million acres of rangelands.
H20 1660  9       Service at these levels of production and utilization
H20 1670  6    will eventually require the construction of about 379,900
H20 1680  5    miles of new roads and 6,000 miles of new trails, along
H20 1690  3    with the reconstruction to higher standards of about
H20 1690 11    105,000 miles of roads and 10,500 miles of trails.
H20 1700  9    About 26,500 miles of existing trails will be replaced
H20 1710  7    in service by the construction of new roads. About
H20 1720  4    80 percent of these long-range requirements should
H20 1720 12    be met by the year 2000.
H20 1730  6       Program proposals for forest development roads and
H20 1740  3    trails for the 10-year period 1963-1972 are as follows:
H20 1750  1    _1._
H20 1750  2       Complete the construction and reconstruction of
H20 1750  8    about 79,400 miles of multiple-purpose roads and 8,000
H20 1760  8    miles of trails. This constitutes about 17 percent
H20 1770  4    of the long-range requirements for these facilities.
H20 1780  1       Approximately 40 percent of the value of the work
H20 1780 10    on roads for access to timber which are planned for
H20 1790 10    this period will be constructed by purchasers of National
H20 1800  5    Forest timber, but paid for by the Government through
H20 1810  4    adjustment of stumpage prices.
H20 1810  8    _2._
H20 1810  9       Provide maintenance to full standards on the 268,900
H20 1820  8    miles of existing access roads and trails and on the
H20 1830  7    new roads and trails constructed during the period.
H20 1840  3    #LAND ADJUSTMENT, LAND PURCHASE, LAND USE#
H20 1840  9    Within the units in the National Forest System the
H20 1850  8    pattern of land ownership is quite irregular. In some
H20 1860  6    units, National Forest ownership is well blocked together.
H20 1870  3    In many others, the previous patenting of land under
H20 1880  2    the public land laws, or the way in which land was
H20 1880 13    available for purchase, resulted in a scattered pattern
H20 1890  7    of ownership.
H20 1890  9       Within exterior boundaries of National Forests and
H20 1900  7    National Grasslands, there are about 40,000,000 acres
H20 1910  6    in non-Federal ownership. One consequence is the occurrence
H20 1920  4    of occasional conflicts because private owners of some
H20 1930  3    inholdings object to public programs of use on neighboring
H20 1940  1    National Forest or other Federal land, or because such
H20 1940 10    ownerships are developed for uses that are not compatible
H20 1950  8    with use for the public of neighboring National Forest
H20 1960  5    land. Some privately held inholdings are a source of
H20 1970  5    direct damage to these Federal lands. And some, which
H20 1980  1    are suitable for tree growing and for other National
H20 1980 10    Forest purposes, are unmanaged or in need of expensive
H20 1990  8    rehabilitation, and are contributing nothing to the
H20 2000  4    economy; there are no reasonable prospects that these
H20 2010  3    conditions will be corrected or changed. Lands in this
H20 2010 12    last category are situated largely in the mountainous
H20 2020  8    portions of the Eastern States.
H20 2030  2       The long-range objective is to bring about consolidation
H20 2040  1    of ownership through use of land exchange authority
H20 2040  9    and through purchase on a moderate scale of inholdings
H20 2050  8    which comprise key tracts for recognized National Forest
H20 2060  5    programs such as recreation development, or which are
H20 2070  4    a source of damage to lands in National Forests and
H20 2080  2    National Grasslands.
H21 0010  1       Strategy and tactics of the U&S& military forces
H21 0010  9    are now undergoing one of the greatest transitions
H21 0020  7    in history. The change of emphasis from conventional-type
H21 0030  5    to missile-type warfare must be made with care, mindful
H21 0040  4    that the one type of warfare cannot be safely neglected
H21 0050  1    in favor of the other. Our military forces must be
H21 0050 11    capable of contending successfully with any contingency
H21 0060  6    which may be forced upon us, from limited emergencies
H21 0070  5    to all-out nuclear general war.
H21 0070 11    #FORCES AND MILITARY PERSONNEL STRENGTH.#
H21 0080  5    - This budget will provide in the fiscal year 1961
H21 0090  5    for the continued support of our forces at approximately
H21 0100  1    the present level- a year-end strength of 2,489,000
H21 0100 10    men and women in the active forces. The forces to be
H21 0110 10    supported include an Army of 14 divisions and 870,000
H21 0120  6    men; a Navy of 817 active ships and 619,000 men; a
H21 0130  4    Marine Corps of 3 divisions and 3 air wings with 175,000
H21 0140  1    men; and an Air Force of 91 combat wings and 825,000
H21 0140 12    men.
H21 0150  1       If the reserve components are to serve effectively
H21 0150  9    in time of war, their basic organization and objectives
H21 0160  6    must conform to the changing character and missions
H21 0170  4    of the active forces. Quality and combat readiness
H21 0180  1    must take precedence over mere numbers. Under modern
H21 0180  9    conditions, this is especially true of the ready reserve.
H21 0190  9    I have requested the Secretary of Defense to reexamine
H21 0200  6    the roles and missions of the reserve components in
H21 0210  3    relation to those of the active forces and in the light
H21 0220  1    of the changing requirements of modern warfare.
H21 0220  8       Last year the Congress discontinued its previously
H21 0230  6    imposed minimum personnel strength limitations on the
H21 0240  4    Army Reserve. Similar restrictions on the strength
H21 0250  2    of the Army National Guard contained in the 1960 Department
H21 0260  1    of Defense Appropriation Act should likewise be dropped.
H21 0260  9    I strongly recommend to the Congress the avoidance
H21 0270  7    of mandatory floors on the size of the reserve components
H21 0280  7    so that we may have the flexibility to make adjustments
H21 0290  4    in keeping with military necessity.
H21 0290  9       I again proposed a reduction in the Army National
H21 0300  8    Guard and Army Reserve- from their present strengths
H21 0310  7    of 400,000 and 300,000, respectively, to 360,000 and
H21 0320  4    270,000 by the end of the fiscal year 1961. These strengths
H21 0330  2    are considered adequate to meet the essential roles
H21 0330 10    and missions of the reserves in support of our national
H21 0340  9    security objectives.
H21 0350  1    #MILITARY PERSONNEL COSTS.#
H21 0350  4    - About 30% of the expenditures for the Department
H21 0360  3    of Defense in 1961 are for military personnel costs,
H21 0370  1    including pay for active, reserve, and retired military
H21 0370  9    personnel. These expenditures are estimated to be $12.1
H21 0380  7    billion, an increase of $187 million over 1960, reflecting
H21 0390  5    additional longevity pay of career personnel, more
H21 0400  2    dependents, an increased number of men drawing proficiency
H21 0410  1    pay, and social security tax increases (effective for
H21 0410  9    the full year in 1961 compared with only 6 months in
H21 0420  9    1960). Retired pay costs are increased by $94 million
H21 0430  5    in 1961 over 1960, partly because of a substantial
H21 0440  1    increase in the number of retired personnel. These
H21 0440  9    increased costs are partially offset by a decrease
H21 0450  7    of $56 million in expenditures for the reserve forces,
H21 0460  5    largely because of the planned reduction in strength
H21 0470  1    of the Army Reserve components during 1961.
H21 0470  8       Traditionally, rates of pay for retired military
H21 0480  7    personnel have been proportionate to current rates
H21 0490  4    of pay for active personnel. The 1958 military pay
H21 0500  2    act departed from this established formula by providing
H21 0500 10    for a 6% increase rather than a proportionate increase
H21 0510  7    for everyone retired prior to its effective date of
H21 0520  6    June 1, 1958. I endorse pending legislation that will
H21 0530  3    restore the traditional relationship between retired
H21 0530  9    and active duty pay rates.
H21 0540  5    #OPERATION AND MAINTENANCE.#
H21 0540  8    - Expenditures for operating and maintaining the stations
H21 0550  7    and equipment of the Armed Forces are estimated to
H21 0560  5    be $10.3 billion in 1961, which is $184 million more
H21 0570  3    than in 1960. The increase stems largely from the growing
H21 0580  1    complexity of and higher degree of maintenance required
H21 0580  9    for newer weapons and equipment.
H21 0590  3       A substantial increase is estimated in the cost
H21 0600  2    of operating additional communications systems in the
H21 0600  9    air defense program, as well as in all programs where
H21 0610  9    speed and security of communications are essential.
H21 0620  3    Also, the program for fleet modernization will be stepped
H21 0630  4    up in 1961 causing an increase in expenditures. Further
H21 0640  1    increases arise from the civilian employee health program
H21 0640  9    enacted by the Congress last year.
H21 0650  6       Other factors increasing operating costs include
H21 0660  3    the higher unit cost of each flying hour, up 11% in
H21 0660 14    two years, and of each steaming hour, up 15%. In total,
H21 0670 11    these increases in operating costs outweigh the savings
H21 0680  7    that result from declining programs and from economy
H21 0690  5    measures, such as reduced numbers of units and installations,
H21 0700  3    smaller inventories of major equipment, and improvements
H21 0710  1    in the supply and distribution systems of the Armed
H21 0710 10    Forces.
H21 0720  1       In the budget message for 1959, and again for 1960,
H21 0720 11    I recommended immediate repeal of section 601 of the
H21 0730  8    Act of September 28, 1951 (65 Stat& 365). This section
H21 0740  6    prevents the military departments and the Office of
H21 0750  4    Civil and Defense Mobilization from carrying out certain
H21 0760  1    transactions involving real property unless they come
H21 0760  8    into agreement with the Committees on Armed Services
H21 0770  7    of the Senate and the House of Representatives. As
H21 0780  4    I have stated previously, the Attorney General has
H21 0790  3    advised me that this section violates fundamental constitutional
H21 0800  1    principles. Accordingly, if it is not repealed by the
H21 0800 10    Congress at its present session, I shall have no alternative
H21 0810 10    thereafter but to direct the Secretary of Defense to
H21 0820  8    disregard the section unless a court of competent jurisdiction
H21 0830  6    determines otherwise.
H21 0830  8       Basic long-line communications in Alaska are now
H21 0840  8    provided through Federal facilities operated by the
H21 0850  5    Army, Air Force, and Federal Aviation Agency. The growing
H21 0860  4    communications needs of this new State can best be
H21 0870  2    met, as they have in other States, through the operation
H21 0870 12    and development of such facilities by private enterprise.
H21 0880  7    Legislation has already been proposed to authorize
H21 0890  5    the sale of these Government-owned systems in Alaska,
H21 0900  4    and its early enactment is desirable.
H21 0900 10    #PROCUREMENT, RESEARCH, AND CONSTRUCTION.#
H21 0910  4    - Approximately 45% of the expenditures for the Department
H21 0920  4    of Defense are for procurement, research, development,
H21 0930  2    and construction programs. In 1961, these expenditures
H21 0940  1    are estimated at $18.9 billion, compared to $19.3 billion
H21 0940 10    in 1960. The decreases, which are largely in construction
H21 0950  7    and in aircraft procurement, are offset in part by
H21 0960  6    increases for research and development and for procurement
H21 0970  3    of other military equipment such as tanks, vehicles,
H21 0980  1    guns, and electronic devices. Expenditures for shipbuilding
H21 0980  8    are estimated at about the same level as in 1960.
H21 0990  9       New obligational authority for 1961 recommended
H21 1000  4    in this budget for aircraft procurement (excluding
H21 1010  1    amounts for related research and construction) totals
H21 1010  8    $4,753 million, which is $1,390 million below that
H21 1020  8    enacted for 1960. On the other hand, the new authority
H21 1030  6    of $3,825 million proposed for missile procurement
H21 1040  2    (excluding research and construction) in 1961 is $581
H21 1040 10    million higher than for 1960. These contrasting trends
H21 1050  8    in procurement reflect the anticipated changes in the
H21 1060  6    composition and missions of our Armed Forces in the
H21 1070  4    years ahead.
H21 1070  6       The Department of Defense appropriation acts for
H21 1080  3    the past several years have contained a rider which
H21 1090  1    limits competitive bidding by firms in other countries
H21 1090  9    on certain military supply items. As I have repeatedly
H21 1100  8    stated, this provision is much more restrictive than
H21 1110  5    the general law, popularly known as the Buy American
H21 1120  2    Act. I urge once again that the Congress not reenact
H21 1130  1    this rider.
H21 1130  3       The task of providing a reasonable level of military
H21 1140  1    strength, without endangering other vital aspects of
H21 1140  8    our security, is greatly complicated by the swift pace
H21 1150  8    of scientific progress. The last few years have witnessed
H21 1160  6    what have been perhaps the most rapid advances in military
H21 1170  3    technology in history. Some weapons systems have become
H21 1180  2    obsolescent while still in production, and some while
H21 1180 10    still under development.
H21 1190  2       Furthermore, unexpectedly rapid progress or a technological
H21 1200  2    break-through on any one weapon system, in itself,
H21 1200 11    often diminishes the relative importance of other competitive
H21 1210  8    systems. This has necessitated a continuous review
H21 1220  6    and reevaluation of the defense program in order to
H21 1230  5    redirect resources to the newer and more important
H21 1240  1    weapons systems and to eliminate or reduce effort on
H21 1240 10    weapons systems which have been overtaken by events.
H21 1250  7    Thus, in the last few years, a number of programs which
H21 1260  5    looked very promising at the time their development
H21 1270  1    was commenced have since been completely eliminated.
H21 1270  8    For example, the importance of the Regulus /2,, a very
H21 1280  9    promising aerodynamic ship-to-surface missile designed
H21 1290  6    to be launched by surfaced submarines, was greatly
H21 1300  3    diminished by the successful acceleration of the much
H21 1300 11    more advanced Polaris ballistic missile launched by
H21 1310  7    submerged submarines.
H21 1320  1       Another example is the recent cancellation of the
H21 1320  9    ~F-108, a long-range interceptor with a speed three
H21 1330  9    times as great as the speed of sound, which was designed
H21 1340  6    for use against manned bombers in the period of the
H21 1350  4    mid-1960's. The substantial progress being made in
H21 1350 12    ballistic missile technology is rapidly shifting the
H21 1360  7    main threat from manned bombers to missiles. Considering
H21 1370  5    the high cost of the ~F-108 system- over $4 billion
H21 1380  4    for the force that had been planned- and the time period
H21 1390  4    in which it would become operational, it was decided
H21 1390 13    to stop further work on the project. Meanwhile, other
H21 1400  9    air defense forces are being made effective, as described
H21 1410  7    later in this message.
H21 1420  1       The size and scope of other important programs have
H21 1420 10    been reduced from earlier plans. Notable in this category
H21 1430  7    are the Jupiter and Thor intermediate range ballistic
H21 1440  4    missiles, which have been successfully developed, produced,
H21 1450  2    and deployed, but the relative importance of which
H21 1460  1    has diminished with the increasing availability of
H21 1460  8    the Atlas intercontinental ballistic missile.
H21 1470  3       The impact of technological factors is also illustrated
H21 1480  4    by the history of the high-energy fuel program. This
H21 1490  2    project was started at a time when there was a critical
H21 1490 13    need for a high-energy fuel to provide an extra margin
H21 1500 10    of range for high performance aircraft, particularly
H21 1510  3    our heavy bombers. Continuing technical problems involved
H21 1520  3    in the use of this fuel, coupled with significant improvements
H21 1530  2    in aircraft range through other means, have now raised
H21 1530 11    serious questions about the value of the high-energy
H21 1540  9    fuel program. As a result, the scope of this project
H21 1550  8    has been sharply curtailed.
H21 1560  1       These examples underscore the importance of even
H21 1560  7    more searching evaluations of new major development
H21 1570  5    programs and even more penetrating and far-ranging
H21 1580  3    analyses of the potentialities of future technology.
H21 1580 10    The cost of developing a major weapon system is now
H21 1590 10    so enormous that the greatest care must be exercised
H21 1600  6    in selecting new systems for development, in determining
H21 1610  3    the most satisfactory rate of development, and in deciding
H21 1620  2    the proper time at which either to place a system into
H21 1620 13    production or to abandon it.
H21 1630  5    #STRATEGIC FORCES.#
H21 1630  7    - The deterrent power of our Armed Forces comes from
H21 1640  7    both their nuclear retaliatory capability and their
H21 1650  3    capability to conduct other essential operations in
H21 1650 10    any form of war. The first capability is represented
H21 1660  9    by a combination of manned bombers, carrier-based aircraft,
H21 1670  7    and intercontinental and intermediate range missiles.
H21 1680  3    The second capability is represented by our deployed
H21 1690  2    ground, naval, and air forces in essential forward
H21 1690 10    areas, together with ready reserves capable of effecting
H21 1700  7    early emergency reinforcement.
H21 1710  1       The Strategic Air Command is the principal element
H21 1720  1    of our long-range nuclear capability. One of the important
H21 1720 11    and difficult decisions which had to be made in this
H21 1730  9    budget concerned the role of the ~B-70, a long-range
H21 1740  8    supersonic bomber. This aircraft, which was planned
H21 1750  3    for initial operational use about 1965, would be complementary
H21 1760  1    to but likewise competitive with the four strategic
H21 1760  9    ballistic missile systems, all of which are scheduled
H21 1770  7    to become available earlier. The first Atlas ~ICBM's
H21 1780  5    are now operational, the first two Polaris submarines
H21 1790  3    are expected to be operational this calendar year,
H21 1800  1    and the first Titan ~ICBM's next year. The Minuteman
H21 1800 10    solid-fueled ~ICBM is planned to be operational about
H21 1810  8    mid-1963. By 1965, several or all of these systems
H21 1820  8    will have been fully tested and their reliability established.
H21 1830  4       Thus, the need for the ~B-70 as a strategic weapon
H21 1840  5    system is doubtful. However, I am recommending that
H21 1850  2    development work on the ~B-70 air-frame and engines
H21 1850 12    be continued. It is expected that in 1963 two prototype
H21 1860  9    aircraft will be available for flight testing. By that
H21 1870  6    time we should be in a much better position to determine
H21 1880  4    the value of that aircraft as a weapon system.
H21 1890  1       I am recommending additional acquisitions of the
H21 1890  8    improved version of the ~B-52 (the ~B-52~H with the
H21 1900 10    new turbofan engine) and procurement of the ~B-58 supersonic
H21 1910  8    medium bomber, together with the supporting refueling
H21 1920  4    tankers in each case. These additional modern bombers
H21 1930  2    will replace some of the older ~B-47 medium bombers;
H21 1940  1    one ~B-52 can do the work of several ~B-47's which
H21 1940 13    it will replace. Funds are also included in this budget
H21 1950  8    to continue the equipping of the ~B-52 wings with the
H21 1960  8    Hound Dog air-to-surface missile.
H21 1970  1       In the coming fiscal year additional quantities
H21 1970  8    of Atlas, Titan, and Polaris missiles also will be
H21 1980  7    procured.
H22 0010  1    Purchase authorizations will include provisions relating
H22 0010  7    to the sale and delivery of commodities, including
H22 0020  6    the classes, types and/or varieties of food grain,
H22 0030  4    the time and circumstances of deposit of the rupees
H22 0035  1    accruing from such sale, and other relevant matters.
H22 0040  8    _3._
H22 0040  9       The United States recognizes the desire of India
H22 0050  6    to accumulate, as quickly as possible, a substantial
H22 0060  3    part of the one million ton reserve stock of rice provided
H22 0070  2    for in this Agreement to assist in stabilizing the
H22 0070 11    internal markets for this commodity in India. Under
H22 0080  8    this Agreement the first annual review of rice availabilities
H22 0090  6    will be made in August 1960. At that time consideration
H22 0100  5    will be given to whether in the light of the United
H22 0110  3    States supplies of rice available for Title /1, disposal,
H22 0120  1    India's production, consumption and stocks of food
H22 0120  8    grains, other imports from the United States and countries
H22 0130  8    friendly to the United States, India's storage capacity,
H22 0140  5    and other related factors, any increase would be possible
H22 0150  5    in the portion of the total rice programmed which is
H22 0160  3    currently planned for procurement during the first
H22 0160 10    year.
H22 0170  1    _4._
H22 0170  1       The two Governments agree that the issuance of purchase
H22 0170 10    authorizations for wheat and rice providing for purchase
H22 0180  8    after June 30, 1961, shall be dependent upon the determination
H22 0190  7    by the United States Government that these commodities
H22 0200  5    are in surplus supply and available under Title /1,
H22 0210  4    of the Act at that time. The United States Government
H22 0220  1    shall have the right to terminate the financing of
H22 0220 10    further sales under this Agreement of any commodity
H22 0230  7    if it determines at any time after June 30, 1961, that
H22 0240  6    such action is necessitated by the existence of an
H22 0250  3    international emergency.
H22 0250  5    #ARTICLE /2, USES OF RUPEES#
H22 0260  1    _1._
H22 0260  2       The two Governments agree that the rupees accruing
H22 0260 10    to the Government of the United States of America as
H22 0270  8    a consequence of sales made pursuant to this Agreement
H22 0280  6    will be used by the Government of the United States
H22 0290  4    of America, in such manner and order of priority as
H22 0300  2    the Government of the United States of America shall
H22 0300 11    determine, for the following purposes in the amounts
H22 0310  8    shown:
H22 0310  9    _(A)_
H22 0310 10       For United States expenditures under subsections
H22 0320  5    (~a), (~b), (~d), (~e), (~f), (~h) through (~r) of
H22 0330  6    Section 104 of the Act or under any of such subsections,
H22 0340  5    the rupee equivalent of $200 million.
H22 0350  1    _(B)_
H22 0350  1       For grant to the Government of India under subsection
H22 0350 10    (~e) of Section 104 of the Act, the rupee equivalent
H22 0360 10    of not more than $538 million for financing such projects
H22 0370  6    to promote balanced economic development as may from
H22 0380  4    time to time be mutually agreed.
H22 0380 10    _(C)_
H22 0380 11       For loan to the Government of India under subsection
H22 0390  8    (~g) of Section 104 of the Act, the rupee equivalent
H22 0400  7    of not more than $538 million for financing such projects
H22 0410  4    to promote balanced economic development as may be
H22 0420  2    mutually agreed. The terms and conditions of the loan
H22 0420 11    and other provisions will be set forth in a separate
H22 0430  9    agreement by the two Governments.
H22 0440  1       In the event that agreement is not reached on the
H22 0440 11    use of the rupees for grant or loan purposes within
H22 0450 10    six years from the date of this Agreement, the Government
H22 0460  6    of the United States of America may use the local currency
H22 0470  6    for any purposes authorized by Section 104 of the Act.
H22 0480  5    _2._
H22 0480  6       In the event the total of rupees accruing to the
H22 0490  3    Government of the United States of America as a consequence
H22 0500  1    of sales made pursuant to this Agreement is different
H22 0500 10    from the rupee equivalent of $1,276 million, the amounts
H22 0510  7    available for the purposes specified in paragraph 1,
H22 0520  5    Article /2, will be adjusted proportionately.
H22 0530  1    #ARTICLE /3, DEPOSIT OF RUPEES#
H22 0530  6    The deposit of rupees to the account of the Government
H22 0540  6    of the United States of America in payment for the
H22 0550  3    commodities and for ocean transportation costs financed
H22 0560  1    by the Government of the United States of America (except
H22 0560 11    excess costs resulting from the requirement that United
H22 0570  8    States flag vessels be used) shall be made at the rate
H22 0580  9    of exchange for United States dollars generally applicable
H22 0590  3    to import transactions (excluding imports granted a
H22 0600  2    preferential rate) in effect on the dates of dollar
H22 0600 11    disbursement by United States banks, or by the Government
H22 0610  9    of the United States of America, as provided in the
H22 0620  7    purchase authorizations.
H22 0620  9    #ARTICLE /4, GENERAL UNDERTAKINGS#
H22 0630  4    _1._
H22 0630  5       The Government of India agrees that it will take
H22 0640  5    all possible measures to prevent the resale or transshipment
H22 0650  2    to other countries or the use for other than domestic
H22 0650 12    purposes (except where such resale, transshipment or
H22 0660  7    use is specifically approved by the Government of the
H22 0670  7    United States of America), of the surplus agricultural
H22 0680  4    commodities purchased pursuant to the provisions of
H22 0690  2    this Agreement, and to assure that the purchase of
H22 0690 11    such commodities does not result in increased availability
H22 0700  7    of these or like commodities for export from India.
H22 0710  5    _2._
H22 0710  6       The two Governments agree that they will take reasonable
H22 0720  5    precautions to assure that all sales or purchases of
H22 0730  2    surplus agricultural commodities, pursuant to the Agreement
H22 0740  1    will not displace usual marketings of the United States
H22 0740 10    of America in these commodities, or unduly disrupt
H22 0750  7    world prices of agricultural commodities or normal
H22 0760  4    patterns of commercial trade with friendly countries.
H22 0770  1    _3._
H22 0770  2       In carrying out this Agreement, the two Governments
H22 0780  1    will seek to assure, to the extent practicable, conditions
H22 0780 10    of commerce permitting private traders to function
H22 0790  6    effectively and will use their best endeavors to develop
H22 0800  5    and extend continuous market demand for agricultural
H22 0810  1    commodities.
H22 0810  2    _4._
H22 0810  3       The Government of India agrees to furnish, upon
H22 0820  3    request of the United States of America, information
H22 0830  1    on the progress of the program, particularly with respect
H22 0830 10    to the arrival and condition of commodities and the
H22 0840  7    provisions for the maintenance of usual marketings,
H22 0850  4    and information relating to exports of the same or
H22 0860  2    like commodities.
H22 0860  4    #ARTICLE /5, CONSULTATION#
H22 0860  7    The two Governments will, upon the request of either
H22 0870  7    of them, consult regarding any matter relating to the
H22 0880  5    application of this Agreement or to the operation of
H22 0890  2    arrangements carried out pursuant to this Agreement.
H22 0890  9    #ARTICLE /6, ENTRY INTO FORCE#
H22 0900  5    The agreement shall enter into force upon signature.
H22 0910  2       IN WITNESS WHEREOF, the respective representatives,
H22 0920  1    duly authorized for the purpose, have signed the present
H22 0920 10    Agreement.
H22 0930  1       DONE at Washington in duplicate this fourth day
H22 0930  9    of May 1960.
H22 0940  3       FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
H22 0950  1       DWIGHT D& EISENHOWER
H22 0950  4       FOR THE GOVERNMENT OF INDIA:
H22 0960  3       S& K& PATIL EXCELLENCY:
H22 0970  2       I have the honor to refer to the Agricultural Commodities
H22 0980  2    Agreement signed today between the Government of the
H22 0990  1    United States of America and the Government of India
H22 0990 10    (hereinafter referred to as the Agreement) and, with
H22 1000  8    regard to the rupees accruing to uses indicated under
H22 1010  5    Article /2, of the Agreement, to state that the understanding
H22 1020  4    of the Government of the United States of America is
H22 1030  3    as follows:
H22 1030  5    _1._
H22 1030  6       With respect to Article /2,, Paragraph 1 (~a) of
H22 1040  4    the Agreement:
H22 1040  6    _(/1,)_
H22 1040  7       The Government of India will provide facilities
H22 1050  6    for the conversions of the rupee equivalent of $4 million
H22 1060  4    (up to a maximum of $1 million per year) accruing under
H22 1070  2    the subject agreement for agricultural market development
H22 1070  9    purposes into currencies other than United States dollars
H22 1080  8    on request of the Government of the United States of
H22 1090  8    America. This facility is needed for the purpose of
H22 1100  6    securing funds to finance agricultural market development
H22 1110  2    activities of the Government of the United States in
H22 1120  1    other countries.
H22 1120  3       The Government of the United States of America may
H22 1130  2    utilize rupees in India to pay for goods and services,
H22 1130 12    including international transportation needed in connection
H22 1140  6    with market development and other agricultural projects
H22 1150  5    and activities in India and other countries.
H22 1160  3    _(/2,)_
H22 1160  4       The rupee equivalent of $63.8 million, but not more
H22 1170  4    than 5 percent of the currencies received under the
H22 1170 13    Agreement will be used for loans to be made by the
H22 1180 11    Export-Import Bank of Washington under Section 104
H22 1190  6    (~e) of the Agricultural Trade Development and Assistance
H22 1200  4    Act, as amended (hereinafter referred to as the Act),
H22 1210  4    and for administrative expenses of the Export-Import
H22 1220  1    Bank of Washington in India incident thereto. It is
H22 1220 10    understood that:
H22 1230  1    _(A)_
H22 1230  2       Such loans under Section 104 (~e) of the Act will
H22 1240  1    be made to United States business firms and branches,
H22 1240 10    subsidiaries, or affiliates of such firms in India
H22 1250  8    for business development and trade expansion in India
H22 1260  4    and to United States firms and to Indian firms for
H22 1270  2    the establishment of facilities for aiding in the utilization,
H22 1280  1    distribution, or otherwise increasing the consumption
H22 1280  7    of and markets for United States agricultural products.
H22 1290  6    In the event the rupees set aside for loans under Section
H22 1300  6    104 (~e) of the Act are not advanced within six years
H22 1310  4    from the date of this Agreement because the Export-Import
H22 1320  1    Bank of Washington has not approved loans or because
H22 1320 10    proposed loans have not been mutually agreeable to
H22 1330  8    the Export-Import Bank of Washington and the Department
H22 1340  6    of Economic Affairs of the Government of India, the
H22 1350  4    Government of the United States of America may use
H22 1360  3    the rupees for any purpose authorized by Section 104
H22 1360 12    of the Act.
H22 1370  2    _(B)_
H22 1370  3       Loans will be mutually agreeable to the Export-Import
H22 1380  1    Bank of Washington and the Government of India acting
H22 1380 10    through the Department of Economic Affairs of the Ministry
H22 1390  9    of Finance. The Secretary, Department of Economic Affairs,
H22 1400  6    or his designate, will act for the Government of India,
H22 1410  7    and the President of the Export-Import Bank of Washington,
H22 1420  4    or his designate, will act for the Export-Import Bank
H22 1430  2    of Washington.
H22 1430  4    _(C)_
H22 1430  5       Upon receipt of an application which the Export-Import
H22 1440  5    Bank is prepared to consider, the Export-Import Bank
H22 1450  2    will inform the Department of Economic Affairs of the
H22 1460  3    identity of the applicant, the nature of the proposed
H22 1460 12    business, the amount of the proposed loan, and the
H22 1470  9    general purposes for which the loan proceeds would
H22 1480  4    be expended.
H22 1480  6    _(D)_
H22 1480  7       When the Export-Import Bank is prepared to act favorably
H22 1490  7    upon an application, it will so notify the Department
H22 1500  3    of Economic Affairs and will indicate the interest
H22 1510  1    rate and the repayment period which would be used under
H22 1510 11    the proposed loan. The interest rate will be similar
H22 1520  8    to those prevailing in India on comparable loans and
H22 1530  5    the maturities will be consistent with the purposes
H22 1540  2    of the financing.
H22 1540  5    _(E)_
H22 1540  6       Within sixty days after the receipt of notice that
H22 1550  4    the Export-Import Bank is prepared to act favorably
H22 1560  1    upon an application the Department of Economic Affairs
H22 1560  9    will indicate to the Export-Import Bank whether or
H22 1570  8    not the Department of Economic Affairs has any objection
H22 1580  6    to the proposed loan. Unless within the sixty-day period
H22 1590  5    the Export-Import Bank has received such a communication
H22 1600  3    from the Department of Economic Affairs it shall be
H22 1610  1    understood that the Department of Economic Affairs
H22 1610  8    has no objection to the proposed loan. When the Export-Import
H22 1620  9    Bank approves or declines the proposed loan, it will
H22 1630  6    notify the Department of Economic Affairs.
H22 1640  2    _2._
H22 1640  3       With respect to Article /2,, paragraphs 1 (~b) and
H22 1645  2    1 (~c): Uses of Section 104 (~e) and Section 104(~g)
H22 1650  9    rupees: The Government of India will use the amount
H22 1660  8    of rupees granted or loaned to it by the United States
H22 1670  7    pursuant to paragraphs 1(~b) and 1(~c) for projects
H22 1680  3    to promote economic development with emphasis upon
H22 1690  1    the agricultural sector including food reserve storage
H22 1690  8    structures and facilities as may from time to time
H22 1700  8    be agreed upon by the authorized representatives of
H22 1710  3    the United States and the authorized representatives
H22 1720  1    of the Government of India, in the following sectors:
H22 1720 10    _A._
H22 1730  1       Agriculture.
H22 1730  1    _B._
H22 1730  2       Industry, including the production of fertilizer,
H22 1740  1    irrigation and power, transport and communications,
H22 1740  7    and credit institutions.
H22 1750  1    _C._
H22 1750  2       Public health, education, and rehabilitation.
H22 1760  1    _D._
H22 1760  1       Other economic development projects consistent with
H22 1760  7    the purposes of Sections 104 (~e) and 104 (~g) of the
H22 1770 10    Act. The Government of India further agrees in cooperation
H22 1780  7    with the Government of the United States, to coordinate
H22 1790  5    the use of grant and loan funds provided for in paragraphs
H22 1800  4    1 (~b) and 1 (~c) of Article /2, with such direct dollar
H22 1820  2    assistance as may be made available by the Government
H22 1820 11    of the United States of America, so that both sources
H22 1830 10    of financing may be channeled to specific and clearly
H22 1840  7    identifiable economic development programs and projects.
H22 1850  4    _3._
H22 1850  5       It is agreed that any goods delivered or services
H22 1860  3    rendered after the date of this agreement for projects
H22 1870  1    within categories ~A, ~B, and ~C under paragraph 2
H22 1870 10    above which may later be approved by the United States
H22 1880  9    will be eligible for financing from currency granted
H22 1890  4    or loaned to the Government of India.
H22 1900  1    _4._
H22 1900  2       With regard to the rupees accruing to uses indicated
H22 1900 11    under Article /2, of the Agreement, the understanding
H22 1910  8    of the Government of the United States of America,
H22 1920  7    with respect to both paragraphs 1 (~b) and 1 (~c) of
H22 1930  6    Article /2, is as follows:
H22 1930 11    _(/1,)_
H22 1940  1       Local currency will be advanced or reimbursed to
H22 1940  9    the Government of India for financing agreed projects
H22 1950  5    under paragraphs 1 (~b) and 1 (~c) of Article /2, of
H22 1960  5    the Agreement upon the presentation of such documentation
H22 1970  2    as the United States may specify.
H22 1970  8    _(/2,)_
H22 1970  9       The Government of India shall maintain or cause
H22 1980  8    to be maintained books and records adequate to identify
H22 1990  5    the goods and services financed for agreed projects
H22 2000  2    pursuant to paragraphs 1 (~b) and 1 (~c) of Article
H22 2010  1    /2, of the Agreement, to disclose the use thereof in
H22 2010 11    the projects and to record the progress of the projects
H22 2020  9    (including the cost thereof). The books and records
H22 2030  5    with respect to each project shall be maintained for
H22 2040  2    the duration of the project, or until the expiration
H22 2040 11    of three years after final disbursement for the project
H22 2050  8    has been made by the United States, whichever is later.
H22 2060  5    The two Governments shall have the right at all reasonable
H22 2070  5    times to examine such books and records and all other
H22 2080  3    documents, correspondence, memoranda and other records
H22 2080  9    involving transactions relating to agreed projects.
H22 2090  6    The Government of India shall enable the authorized
H22 2100  5    representatives of the United States to observe and
H22 2110  4    review agreed projects and the utilization of goods
H22 2110 12    and services financed under the projects, and shall
H22 2120  8    furnish to the United States all such information as
H22 2130  6    it shall reasonably request concerning the above-mentioned
H22 2140  4    matters and the expenditures related thereto.
H23 0010  1    This broad delegation leaves within our discretion
H23 0010  8    (subject to the always-present criterion of the public
H23 0020  5    interest) both the determination of what degree of
H23 0030  5    interference shall be considered excessive, and the
H23 0040  1    methods by which such excessive interference shall
H23 0040  8    be avoided.
H23 0050  1    _3._
H23 0050  1       The present proceeding is concerned with the standard
H23 0050  9    broadcast (~AM) band, from 540 kc& to 1600 kc&. Whenever
H23 0060  9    two or more standard broadcast stations operate simultaneously
H23 0070  5    on the same or closely adjacent frequencies, each interferes
H23 0080  4    to some extent with reception of the other. The extent
H23 0090  5    of such interference- which may be so slight as to
H23 0100  3    be undetectable at any point where either of the stations
H23 0100 13    renders a usable signal, or may be so great as to virtually
H23 0110 12    destroy the service areas of both stations- depends
H23 0120  6    on many factors, among the principal ones being the
H23 0130  4    distance between the stations, their respective radiated
H23 0140  2    power, and, of particular significance here, the time
H23 0140 10    of day. Other factors playing a part in the the extent
H23 0150 10    of ~AM service and interference are the frequency involved,
H23 0160  7    the time of year, the position of the year in the sunspot
H23 0170  7    cycle, ground conductivity along the transmission path,
H23 0190  3    atmospheric and manmade noise, and others. With the
H23 0200  1    existence of these many factors, some of them variable,
H23 0200 10    it obviously has never been and is not now possible
H23 0210  9    for the Commission to make assignments of ~AM stations
H23 0220  4    on a case-to-case basis which will insure against any
H23 0230  3    interference in any circumstances. Rather, such assignments
H23 0240  1    are made, as they must be, on the basis of certain
H23 0240 12    overall rules and standards, representing to some extent
H23 0250  7    a statistical approach to the problem, taking into
H23 0260  5    account for each situation some of the variables (e&g&,
H23 0270  2    power and station separations) and averaging out others
H23 0280  1    in order to achieve the balance which must be struck
H23 0280 11    between protection against destructive interference
H23 0290  4    and the assignment of a number of stations large enough
H23 0300  4    to afford optimum radio service to the Nation. An example
H23 0310  3    of the overall standards applied is the 20-to-1 ratio
H23 0310 14    established for the determination of that degree of
H23 0320  8    cochannel interference which is regarded as objectionable.
H23 0330  6    By this standard, it is determined that where two stations
H23 0340  5    operating on the same frequency are involved, objectionable
H23 0350  2    interference from station ~A exists at any point within
H23 0360  1    the service area of station ~B where station ~A's signal
H23 0370  1    is of an intensity one-twentieth or more of the strength
H23 0370 12    of station ~B's signal at that point.
H23 0380  5    _4._
H23 0380  6       The 20-to-1 ratio for cochannel interference embodies
H23 0390  3    one of the fundamental limiting principles which we
H23 0400  2    must always take into account in ~AM assignments and
H23 0400 11    allocations- that signals from a particular station
H23 0410  9    are potential sources of objectionable interference
H23 0420  4    over an area much greater than that within which they
H23 0430  3    provide useful service. A second fundamental principle
H23 0440  1    is that involved particularly in the present proceeding-
H23 0440  9    the difference between nighttime and daytime propagation
H23 0450  6    conditions with respect to the standard broadcast frequencies.
H23 0460  6    This is a phenomenon familiar to all radio listeners,
H23 0480  5    resulting from reflection of skywave signals at night
H23 0490  2    from the ionized layer in the upper atmosphere known
H23 0490 11    as the ionosphere. All ~AM stations radiate both skywave
H23 0500  7    and groundwave signals, at all hours; but during the
H23 0510  7    middle daytime hours these skywave radiations are not
H23 0520  4    reflected in any substantial quantity, and during this
H23 0530  2    portion of the day both skywave service and skywave
H23 0530 11    interference are, in general, negligible. But during
H23 0540  7    nighttime hours the skywave radiations are reflected
H23 0550  4    from the ionosphere, thereby creating the possibility
H23 0560  1    of one station's rendering service, via skywave, at
H23 0560  9    a much greater distance than it can through its groundwave
H23 0570  9    signal, and at the same time vastly complicating the
H23 0580  6    interference problem because of the still greater distance
H23 0590  4    over which these skywave signals may cause interference
H23 0600  1    to the signals of stations on the same and closely
H23 0600 11    adjacent frequencies. Because of the difference between
H23 0610  7    daytime and nighttime propagation conditions, it has
H23 0620  5    been necessary to evolve different allocation structures
H23 0630  2    for daytime and nighttime broadcasting in the ~AM band,
H23 0640  2    with many more stations operating during the day than
H23 0640 11    at night.
H23 0650  1    _5._
H23 0650  2       It was recognized years ago that the transition
H23 0650 10    from daytime to nighttime propagation conditions, and
H23 0660  6    vice versa, is not an instantaneous process, but takes
H23 0670  4    place over periods of time from roughly 2 hours before
H23 0680  4    sunset until about 2 hours after sunset, and again
H23 0680 13    from roughly 2 hours before sunrise until some 2 hours
H23 0690 10    after sunrise. During the period of about 4 hours around
H23 0700  8    sunset, skywave transmission conditions are building
H23 0710  3    up until full nighttime conditions prevail; during
H23 0720  1    the same period around sunrise, skywave transmission
H23 0720  8    is declining, until at about 2 hours after sunrise
H23 0730  8    it reaches a point where it becomes of little practical
H23 0740  4    significance. However, in this case as elsewhere it
H23 0750  2    was necessary to arrive at a single standard to be
H23 0750 12    applied to all situations, representing an averaging
H23 0760  6    of conditions, and thus to fix particular points in
H23 0770  5    time which would be considered the dividing points
H23 0780  1    between daytime and nighttime conditions. It was determined
H23 0780  9    that the hours of sunrise and sunset, respectively,
H23 0790  8    should be used for this purpose. Accordingly, the 1938-39
H23 0800  6    rules adopted these hours as limitations upon the operation
H23 0810  4    of daytime stations. Class /2, stations operating on
H23 0820  3    clear channels are required to cease operation or operate
H23 0830  1    under nighttime restrictions beginning either at local
H23 0830  8    sunset (for daytime class /2, stations) or sunset at
H23 0840  7    the location of the dominant class /1, station where
H23 0850  5    located west of the class /2, station (for limited-time
H23 0860  3    class /2, stations).
H23 0860  6       The same restrictions apply after local sunset in
H23 0870  5    the case of class /3, stations operating on regional
H23 0880  2    channels, which after that time are required to operate
H23 0880 11    under nighttime restrictions in order to protect each
H23 0890  8    other. With respect to nighttime assignments, the degree
H23 0900  6    of skywave service and interference is determined by
H23 0910  4    skywave curves (figs& 1 and 2 of sec& 3.190 of the
H23 0920  3    rules) giving average skywave values. These curves
H23 0920 10    were derived by an analysis of extensive skywave measurement
H23 0930  8    data. It was recognized that skywave signals, because
H23 0940  5    of their reflected nature, are of great variability
H23 0950  2    and subject to wide fluctuations in strength. For this
H23 0960  1    reason, the more uncertain skywave service was denominated
H23 0960  9    "secondary" in our rules, as compared to the steadier,
H23 0970  9    more reliable groundwave "primary service", and, for
H23 0980  5    both skywave service and skywave interference, signal
H23 0990  3    strength is expressed in terms of percentage of time
H23 1000  2    a particular signal-intensity level is exceeded- 50
H23 1000 10    percent of the time for skywave service, 10 percent
H23 1010  8    of the time for skywave interference.
H23 1020  1    #ALLOCATION POLICIES#
H23 1020  3    _6._
H23 1020  4       As mentioned, the allocation of ~AM stations represents
H23 1030  5    a balance between protection against interference and
H23 1040  3    the provision of opportunity for an adequate number
H23 1050  1    of stations. The rules and policies to be applied in
H23 1050 11    this process of course must be based on objectives
H23 1060  7    which represent what is to be desired if radio service
H23 1070  4    is to be of maximum use to the Nation. Our objectives,
H23 1080  1    as we have stated many times, are-
H23 1080  8    _(1)_
H23 1080  9       To provide some service to all listeners;
H23 1090  5    _(2)_
H23 1090  6       To provide as many choices of service to as many
H23 1100  5    listeners as possible;
H23 1100  8    _(3)_
H23 1100  9       To provide service of local origin to as many listeners
H23 1110  8    as possible. Since broadcast frequencies are very limited
H23 1120  5    in number, these objectives are to some extent inconsistent
H23 1130  3    in that not all of them can be fully realized, and
H23 1140  1    to the extent that each is realized, there is a corresponding
H23 1140 12    reduction of the possibilities for fullest achievement
H23 1150  7    of the others. Accordingly, the Commission has recognized
H23 1160  5    that an optimum allocation pattern for one frequency
H23 1170  4    does not necessarily represent the best pattern for
H23 1180  2    other frequencies, and has assigned different frequencies
H23 1180  9    for use by different classes of stations. Some 45 frequencies
H23 1190  9    are assigned for use primarily by dominant Class /1,-
H23 1200  7    ~A or Class /1,- ~B clear-channel stations, designed
H23 1210  8    to operate with adequate power and to provide service-
H23 1220  6    both groundwave and (at night) skywave- over large
H23 1230  5    areas and at great distances, being protected against
H23 1240  1    interference to the degree necessary to achieve this
H23 1240  9    objective. In dealing with these frequencies, the objective
H23 1250  6    listed first above- provision of service to all listeners-
H23 1260  6    was predominant; the other objectives were subordinated
H23 1270  3    to it. The class /1, stations on these clear channels
H23 1280  2    are protected to their 0.1-mv&/m& groundwave contours
H23 1290  1    against daytime cochannel interference. With respect
H23 1290  7    to skywave service rendered at night, class /1,- ~A
H23 1300  7    stations are the only stations permitted to operate
H23 1310  4    in the United States on clear channels specified for
H23 1320  2    class /1,- ~A operation, and so render skywave service
H23 1325  1    free from cochannel interference whereever they may
H23 1330  7    be received; class /1,- ~B stations are protected at
H23 1340  6    night to their 0.5-mv&/m& 50-percent time skywave contours
H23 1350  4    against cochannel interference. Since the provision
H23 1360  3    of skywave service requires adequate freedom from interference,
H23 1370  1    only class /1, stations are capable of rendering skywave
H23 1370 10    service. But nighttime operation by stations of other
H23 1380  8    classes of course entails skywave interference to groundwave
H23 1390  6    service, interference which is substantial unless steps
H23 1400  5    are taken to minimize it.
H23 1400 10    _7._
H23 1400 11       With respect to other frequencies, these are designated
H23 1410  8    as regional or local, and assigned for use by class
H23 1420  7    /3, and class /4, stations, respectively, stations
H23 1430  2    operating generally with lower power. In the allocation
H23 1440  1    pattern worked out for these frequencies, the provision
H23 1440  9    of long-range service has to some extent been subordinated
H23 1450  8    to the other two objectives- assignment of multiple
H23 1460  6    facilities, and assignment of stations in as many communities
H23 1470  5    as possible.
H23 1470  7    _8._
H23 1470  8       As mentioned, the primary allocation objective to
H23 1480  4    be followed in the allocation of stations on clear
H23 1490  3    channels is the provision of widespread service, free
H23 1490 11    from destructive interference. During nighttime hours,
H23 1500  6    because of the intense skywave propagation then prevailing,
H23 1510  5    no large number of stations can be permitted to operate
H23 1520  5    on one of these channels, if the wide area service
H23 1530  2    for which these frequencies are assigned is to be rendered
H23 1530 12    satisfactorily by the dominant stations which must
H23 1540  7    be relied upon to render it. Therefore, under our longstanding
H23 1550  6    allocation rules, on some of these channels no station
H23 1560  5    other than the dominant (class /1,- ~A) station is
H23 1570  3    permitted to operate at night, so that the /1,- ~A
H23 1580  1    station can render service, interference free, wherever
H23 1580  8    it can be received. On the remainder of the clear channels,
H23 1590  8    the dominant (class /1,- ~B) stations are protected
H23 1600  5    as described above, and the relatively small number
H23 1610  3    of secondary (class /2,) stations permitted to operate
H23 1620  1    on these channels at night are required to operate
H23 1620 10    directionally and/or with reduced power so as to protect
H23 1630  9    the class /1, stations. In the daytime, on the other
H23 1640  7    hand, since skywave transmission is relatively inefficient,
H23 1650  2    it is possible to assign a substantially larger number
H23 1660  1    of stations on these channels. Additional class /2,
H23 1660  9    assignments for daytime operation can be made without
H23 1670  8    causing destructive interference to the class /1, stations
H23 1680  6    or to each other, and by their operation provide additional
H23 1690  3    service on these channels and additional local outlets
H23 1700  2    for a large number of communities. Such additional
H23 1700 10    daytime class /2, assignments are appropriate if optimum
H23 1710  8    use is to be made of these frequencies, and the Commission
H23 1720  7    has over the years made a large number of them. Similarly,
H23 1730  5    on the regional channels many class /3, stations have
H23 1740  3    been assigned either to operate daytime only or to
H23 1740 12    operate nighttime with directional antennas and/or
H23 1750  6    lower power.
H23 1760  1    _9._
H23 1760  1       Essentially, the question presented for decision
H23 1760  7    in the present Daytime Skywave proceeding is whether
H23 1770  5    our decision [in 1938-1939] to assign stations on the
H23 1780  5    basis of daytime conditions from sunrise to sunset,
H23 1790  1    is sound as a basis for ~AM allocations, or whether,
H23 1790 11    in the light of later developments and new understanding,
H23 1800  7    skywave transmission is of such significance during
H23 1810  6    the hours immediately before sunset and after sunrise
H23 1820  3    that this condition should be taken into account, and
H23 1830  1    some stations required to afford protection to other
H23 1830  9    stations during these hours.
H23 1840  2    #THE HISTORY OF THE PROCEEDING#
H23 1840  7    _10._
H23 1840  8       The decision reached in 1938-39 was made after the
H23 1850  9    accumulation of a large amount of data and thorough
H23 1860  5    study thereof. Since then, there has been a notable
H23 1870  1    increase in the number of stations and also the accumulation
H23 1870 11    of additional data and the development of new techniques
H23 1880  8    for using it, leading to a better understanding of
H23 1890  6    propagation phenomena. In 1947, affidavits were filed
H23 1900  3    with the Commission by various clear-channel stations
H23 1910  1    alleging that extensive interference was being caused
H23 1910  8    to the service areas of these stations during daylight
H23 1920  7    hours, from class /2, stations whose signals were being
H23 1930  5    reflected from the ionosphere so as to create skywave
H23 1940  3    intereference.
H24 0010  1    If you elect to use the Standard Deduction or the Tax
H24 0010 12    Table, and later find you should have itemized your
H24 0020  8    deductions, you may do so by filing an amended return
H24 0030  5    within the time prescribed for filing a claim for refund.
H24 0040  3    See You May Claim a Refund, Page 135. The same is true
H24 0050  3    if you have itemized your deductions and later decide
H24 0050 12    you should have used the Standard Deduction or Tax
H24 0060  8    Table. The words amended return should be plainly written
H24 0070  6    across the top of such return.
H24 0080  1    _WHEN AND WHERE TO FILE_
H24 0080  6       April 15 is usually the final date for filing income
H24 0090  4    tax returns for most people because they use the calendar
H24 0100  1    year ending on December 31. If you use a fiscal year,
H24 0100 12    a year ending on the last day of any month other than
H24 0110 10    December, your return is due on or before the 15th
H24 0120  7    day of the 4th month after the close of your tax year.
H24 0130  3    _SATURDAY, SUNDAY, OR HOLIDAY._
H24 0130  7       If the last day (due date) for performing any act
H24 0140  6    for tax purposes, such as filing a return or making
H24 0150  4    a tax payment, etc&, falls on Saturday, Sunday, or
H24 0160  2    a legal holiday, you may perform that act on the next
H24 0160 13    succeeding day which is not a Saturday, Sunday, or
H24 0170  8    legal holiday. Since April 15, 1962, is on Sunday your
H24 0180  6    return for the calendar year 1961 will be timely filed
H24 0190  3    if it is filed on or before Monday, April 16, 1962.
H24 0200  1       IF YOU MAIL A RETURN or tax payment, you must place
H24 0200 12    it in the mails in ample time to reach the district
H24 0210 11    director on or before the due date.
H24 0220  4    _DECLARATION OF ESTIMATED TAX._
H24 0220  8       If you were required to file a declaration of estimated
H24 0230  7    tax for the calendar year 1961, it is not necessary
H24 0240  5    to pay the fourth installment otherwise due on January
H24 0250  1    15, 1962, if you file your income tax return Form 1040,
H24 0250 12    and pay your tax in full for the calendar year 1961
H24 0260 10    by January 31, 1962. The filing of an original or amended
H24 0270  7    declaration, otherwise due on January 15, 1962, is
H24 0280  4    also waived, if you file your Form 1040 for 1961 and
H24 0290  1    pay the full tax by January 31, 1962. Farmers, for
H24 0290 11    these purposes, have until February 15, 1962, to file
H24 0300  8    Form 1040 and pay the tax in full for the calendar
H24 0310  5    year 1961. Fiscal year taxpayers have until the last
H24 0320  2    day of the first month following the close of the fiscal
H24 0320 13    year (farmers until the 15th day of the 2d month).
H24 0330  9    See Chapter 38.
H24 0340  1       Nonresident aliens living in Canada or Mexico who
H24 0340  8    earn wages in the United States may be subject to withholding
H24 0350  9    of tax on their wages, the same as if they were citizens
H24 0360  8    of the United States. Their United States tax returns
H24 0370  5    are due April 16, 1962. However, if their United States
H24 0380  3    income is not subject to the withholding of tax on
H24 0380 13    wages, their returns are due June 15, 1962, if they
H24 0390 10    use a calendar year, or the 15th day of the 6th month
H24 0400  9    after the close of their fiscal year.
H24 0410  1    _NONRESIDENT ALIENS IN PUERTO RICO._
H24 0410  6       If you are a nonresident alien and a resident of
H24 0420  6    Puerto Rico, your return is also due June 15, 1962,
H24 0430  3    or the 15th day of the 6th month after the close of
H24 0430 15    your fiscal year.
H24 0440  2       IF A TAXPAYER DIES, the executor, administrator,
H24 0450  1    or legal representative must file the final return
H24 0450  9    for the decedent on or before the 15th day of the 4th
H24 0460 10    month following the close of the deceased taxpayer's
H24 0470  4    normal tax year. Suppose John Jones, who, for 1960,
H24 0480  3    filed on the basis of a calendar year, died June 20,
H24 0480 14    1961. His return for the period January 1 to June 20,
H24 0490 11    1961, is due April 16, 1962.
H24 0500  3       The return for a decedent may also serve as a claim
H24 0510  1    for refund of an overpayment of tax. In such a case,
H24 0510 12    Form 1310 should be completed and attached to the return.
H24 0520  8    This form may be obtained from the local office of
H24 0530  6    your district director.
H24 0530  9       RETURNS OF ESTATES OR TRUSTS are due on or before
H24 0540 10    the 15th day of the 4th month after the close of the
H24 0550  8    tax year.
H24 0560  1    _EXTENSIONS OF TIME FOR FILING._
H24 0560  2       Under unusual circumstances a resident individual
H24 0560  8    may be granted an extension of time to file a return.
H24 0570 10    You may apply for such an extension by filing Form
H24 0580  6    2688, Application For Extension Of Time To File, with
H24 0590  5    the District Director of Internal Revenue for your
H24 0600  3    district, or you may make your application in a letter.
H24 0600 13    Your application must include the following information:
H24 0610  7    (1) your reasons for requesting an extension, (2) whether
H24 0620  7    you filed timely income tax returns for the 3 preceding
H24 0630  6    years, and (3) whether you were required to file an
H24 0640  4    estimated return for the year, and if so whether you
H24 0640 14    did file and have paid the estimated tax payments on
H24 0650  9    or before the due dates. Any failure to file timely
H24 0660  6    returns or make estimated tax payments when due must
H24 0670  4    be fully explained. Extensions are not granted as a
H24 0670 13    matter of course, and the reasons for your request
H24 0680  9    must be substantial. If you are unable to sign the
H24 0690  7    request, because of illness or other good cause, another
H24 0700  3    person who stands in close personal or business relationship
H24 0710  1    to you may sign the request on your behalf, stating
H24 0710 11    the reason why you are unable to sign. You should make
H24 0720 10    any request for an extension early so that if it is
H24 0730  7    refused, your return may still be on time. See also
H24 0740  3    Interest on Unpaid Taxes, below.
H24 0750  1    _EXTENSIONS WHILE ABROAD._
H24 0750  2       Citizens of the United States who, on April 15,
H24 0750 11    are not in the United States or Puerto Rico, are allowed
H24 0760 10    an extension of time until June 15 for filing the return
H24 0770  9    for the preceding calendar year. An extension of 2
H24 0780  6    months beyond the regular due date for filing is also
H24 0790  3    available to taxpayers making returns for a fiscal
H24 0790 11    year.
H24 0800  1    _ALASKA AND HAWAII._
H24 0800  3       Taxpayers residing or traveling in Alaska are also
H24 0810  1    allowed this extension of time for filing, but those
H24 0810 10    residing or traveling in Hawaii are not allowed this
H24 0820  7    automatic extension.
H24 0830  1       Military or Naval Personnel on duty in Alaska or
H24 0830 10    outside the United States and Puerto Rico are also
H24 0840  9    allowed this automatic extension of time for filing
H24 0850  6    their returns.
H24 0850  8       You must attach a statement to your return, if you
H24 0860  8    take advantage of this automatic extension, showing
H24 0880  3    that you were in Alaska or were outside the United
H24 0890  1    States or Puerto Rico on April 15 or other due date.
H24 0900  1    _INTEREST ON UNPAID TAXES._
H24 0900  4       Interest at the rate of 6% a year must be paid on
H24 0910  2    taxes that are not paid on or before their due date.
H24 0910 13    Such interest must be paid even though an extension
H24 0920  8    of time for filing is granted.
H24 0930  1    _WHEN PAYMENT IS DUE._
H24 0930  5       If your computation on Form 1040 or Form 1040~A
H24 0940  3    shows you owe additional tax, it should be remitted
H24 0950  1    with your return unless you owe less than $1, in which
H24 0950 12    case it is forgiven. If payment is by cash, you should
H24 0960  8    ask for a receipt. If you file Form 1040~A and the
H24 0970  5    District Director computes your tax, you will be sent
H24 0980  4    a bill if additional tax is due. This bill should be
H24 0980 15    paid within 30 days.
H24 0990  4    _PAYMENT BY CHECK OR MONEY ORDER._
H24 0990 10       Whether the check is certified or uncertified, the
H24 1000  7    tax is not paid until the check is paid. If the check
H24 1010  6    is not good and the April 15 or other due date deadline
H24 1020  2    elapses, additions to the tax may be incurred. Furthermore,
H24 1030  1    a bad check may subject the maker to certain penalties.
H24 1030 11    All checks and money orders should be made payable
H24 1040  8    to Internal Revenue Service.
H24 1050  1    _REFUNDS._
H24 1050  2       An overpayment of income and social security taxes
H24 1060  1    entitles you to a refund unless you indicate on the
H24 1060 11    return that the overpayment should be applied to your
H24 1070  7    succeeding year's estimated tax.
H24 1080  2       If you file Form 1040~A and the District Director
H24 1090  1    computes your tax, any refund to which you are entitled
H24 1090 11    will be mailed to you.
H24 1100  4       If you file a Form 1040, you should indicate in
H24 1110  2    the place provided that there is an overpayment of
H24 1110 11    tax and the amount you want refunded and the amount
H24 1120  8    you want credited against your estimated tax.
H24 1130  3       Refunds of less than $1 will not be made unless
H24 1140  2    you attach a separate application to your return requesting
H24 1140 11    such a refund.
H24 1150  3    _WHERE TO FILE._
H24 1150  6       Send your return to the Director of Internal Revenue
H24 1160  4    for the district in which you have your legal residence
H24 1170  1    or principal place of business. If you have neither
H24 1170 10    a legal residence nor a principal place of business
H24 1180  7    in any internal revenue district, your return should
H24 1190  4    be filed with the District Director of Internal Revenue,
H24 1200  2    Baltimore 2, Md&. If your principal place of abode
H24 1210  1    for the tax year is outside the United States (including
H24 1210 11    Alaska and Hawaii), Puerto Rico, or the Virgin Islands
H24 1220  9    and you have no legal residence or principal place
H24 1230  5    of business in any internal revenue district in the
H24 1240  4    United States, you should file your return with the
H24 1250  1    Office of International Operations, Internal Revenue
H24 1250  7    Service, Washington 25, D&C&.
H24 1260  3    _ADJUSTED GROSS INCOME_
H24 1260  6       The deductions allowed in determining Adjusted Gross
H24 1270  6    Income put all taxpayers on a comparable basis. It
H24 1280  5    is the amount you enter on line 9, page 1 of Form 1040.
H24 1290  2    Some deductions are subtracted from Gross Income to
H24 1290 10    determine Adjusted Gross Income. Other deductions are
H24 1300  7    subtracted only from Adjusted Gross Income in arriving
H24 1310  7    at Taxable Income.
H24 1320  1       TO COMPUTE YOUR ADJUSTED GROSS INCOME you total
H24 1320  9    all items of income. (See Chapter 6.) From this amount
H24 1330  9    deduct the items indicated below.
H24 1340  2       Businessmen deduct all ordinary and necessary expenses
H24 1350  2    attributable to a trade or business.
H24 1360  1    _RENTS OR ROYALTIES._
H24 1360  1       If you hold property for the production of rents
H24 1360 10    or royalties you subtract, in computing Adjusted Gross
H24 1370  6    Income, ordinary and necessary expenses and certain
H24 1380  4    other deductions attributable to the property. (See
H24 1390  2    Chapter 15.)
H24 1390  4       Outside salesmen deduct all expenses attributable
H24 1400  2    to earning a salary, commission, or other compensation.
H24 1410  1    (See Chapter 10.)
H24 1410  4       Employees deduct expenses of travel, meals and lodging
H24 1420  4    while away from home in connection with the performance
H24 1430  1    of their services as employees. They also deduct transportation
H24 1440  1    expenses incurred in connection with the performance
H24 1440  8    of services as employees even though they are not away
H24 1450  7    from home. (See Chapter 12.) If your employer reimburses
H24 1460  5    you for expenses incurred, you deduct such expenses
H24 1470  2    if they otherwise qualify. (See Chapter 10.)
H24 1470  9       Sick pay, if included in your Gross Income, is deducted
H24 1480 10    in arriving at Adjusted Gross Income. If your sick
H24 1490  8    pay is not included in your Gross Income, you may not
H24 1500  6    deduct it. (See Chapter 9.)
H24 1510  1    _INCOME FROM ESTATES AND TRUSTS._
H24 1510  5       If you are a life tenant, you deduct allowable depreciation
H24 1520  2    and depletion. If you are an income beneficiary of
H24 1530  1    property held in trust or an heir, legatee, or devisee,
H24 1530 11    you may deduct allowable depreciation and depletion,
H24 1540  5    if not deductible by the estate or trust.
H24 1550  3       Deductible losses on sales or exchanges of property
H24 1560  2    are allowable in determining your Adjusted Gross Income.
H24 1560 10    (See Chapter 20.)
H24 1570  3    _50% OF CAPITAL GAINS._
H24 1570  7       You also deduct 50% of the excess of net long-term
H24 1580  8    capital gains over net short-term capital losses in
H24 1590  3    determining Adjusted Gross Income. (See Chapter 24.)
H24 1600  1    _OTHER DEDUCTIONS._
H24 1600  3       Certain other deductions are not allowed in determining
H24 1610  2    Adjusted Gross Income. They may be claimed only by
H24 1610 11    itemizing them on page 2 of Form 1040. These deductions
H24 1620 10    may not be claimed if you elect to use the Standard
H24 1630  8    Deduction or tax Table. (See Chapters 30 through 37.)
H24 1640  5    #2. MINORS MINORS MUST ALSO FILE RETURNS IF THEY EARN
H24 1650  4    $600 OR MORE DURING THE YEAR.#
H24 1650 10    A MINOR IS subject to tax on his own earnings even
H24 1660  8    though his parent may, under local law, have the right
H24 1670  5    to them and might actually have received the money.
H24 1680  1    His income is not required to be included in the return
H24 1680 12    of his parent.
H24 1690  1       A MINOR CHILD IS ALLOWED A PERSONAL EXEMPTION of
H24 1700  2    $600 on his own return regardless of how much money
H24 1700 12    he may earn.
H24 1710  1    _EXEMPTION ALSO ALLOWED PARENT._
H24 1710  4       If your child is under 19 or is a student you may
H24 1720  4    also claim an exemption for him if he qualifies as
H24 1720 14    your dependent, even though he earns $600 or more.
H24 1730  9    See Chapter 5.
H24 1740  1    _EXAMPLE._
H24 1740  1       Your 16 year old son earned $720 in 1961. You spent
H24 1740 12    $800 for his support. Since he had gross income of
H24 1750  9    $600 or more, he must file a return in which he may
H24 1760  7    claim an exemption deduction of $600. Since you contributed
H24 1770  3    more than half of his support, you may also claim an
H24 1780  1    exemption for him on your return.
H24 1780  7    _HE MAY GET A TAX REFUND._
H24 1780 13       A minor who has gross income of less than $600 is
H24 1790 11    entitled to a refund if income tax was withheld from
H24 1800  6    his wages. Generally, the refund may be obtained by
H24 1810  3    filing Form 1040~A accompanied by the withholding statement
H24 1820  1    (Form ~W-2). If he had income other than wages subject
H24 1820 12    to withholding, he may be required to file Form 1040.
H24 1830 10    See Chapter 1.
H24 1840  1       IF YOUR CHILD WORKS FOR YOU, you may deduct reasonable
H24 1850  1    wages you paid to him for services he rendered in your
H24 1850 12    business. You may deduct these payments even though
H24 1860  8    your child uses the money to purchase his own clothing
H24 1870  5    or other necessities which you are normally obligated
H24 1880  2    to furnish him, and even though you may be entitled
H24 1880 12    to his services.
H25 0010  1    The one- or two-season hunt, of which there have been
H25 0010 13    too many recently, may do more harm than good; for
H25 0020  8    such programs raise hopes of assistance toward achieving
H25 0030  3    excellence in scholarship and the arts which are dashed
H25 0040  3    when the programs are discontinued; and they are dashed,
H25 0050  1    no less, by lack of skill in making selections of men
H25 0050 12    and women for development toward the highest reaches
H25 0060  5    of the mind and spirit.
H25 0060 10       For the making of selections on the basis of excellence
H25 0070 10    requires that any foundation making the selections
H25 0080  5    shall have available the judgments of a corps of advisors
H25 0090  6    whose judgments are known to be good: such judgments
H25 0100  1    can be known to be good only by the records of those
H25 0100 13    selected, by records made subsequent to their selection
H25 0110  8    over considerable periods of time.
H25 0120  3       The central group of the Foundation's advisors are,
H25 0130  2    at any one period of time, the members of our Advisory
H25 0130 13    Board, consisting, now, of thirty-six men and women.
H25 0140  9    They are chosen by the Foundation's Board of Trustees
H25 0150  5    on the bases of their own first-rate accomplishments
H25 0160  2    in their different fields of scholarship and the arts.
H25 0170  1    Their locations in all parts of the United States,
H25 0170 10    and their locations in the several kinds of educational
H25 0180  7    and research institutions that are the principal homes
H25 0190  6    of our intellectual and artistic strengths also are
H25 0200  3    factors in the Trustees' minds. For this concept of
H25 0200 12    an Advisory Board, ancillary to the Board of Trustees,
H25 0210  9    we are indebted to the late President of Harvard University,
H25 0220  8    A& Lawrence Lowell, a master of the subject of the
H25 0230  8    structure of cultural institutions and their administration.
H25 0240  4    That we had the wit and wisdom to adopt Mr& Lowell's
H25 0250  2    concept and make it the base for our processes of selection
H25 0260  1    is one reason why our selections have been, it may
H25 0260 11    be said truly, pretty uniformly good.
H25 0270  4       For in accordance with Mr& Lowell's concept of an
H25 0280  4    advisory board, our selections are made by experienced
H25 0290  1    selectors who give both constancy and consistency to
H25 0290  9    our processes and our choices. And lest we should become
H25 0300  9    too consistent, in the sense of becoming heedless of
H25 0310  6    new fields of scholarship and new points of view in
H25 0320  4    the arts, the Foundation's Board of Trustees maintains
H25 0330  1    a trickle- not a flow!- of new members through the
H25 0330 11    Advisory Board.
H25 0340  1       Two committees of members of the Advisory Board
H25 0340  9    constitute the committees of selection- one for the
H25 0350  8    selection of Fellows from Canada, the United States,
H25 0360  6    and the English-speaking Caribbean area and one for
H25 0370  5    the selection of Fellows from the Latin American republics
H25 0380  2    and the Republic of the Philippines.
H25 0380  8       To the members of our Advisory Board, and most specially
H25 0390  8    to its members who constitute our committees of selection,
H25 0400  5    the Foundation is indebted for its successes of choice
H25 0410  4    of Fellows. We are, as we know, utterly dependent on
H25 0420  2    the quality of advice we get; and quality of advice,
H25 0420 12    added to devotion to the Foundation's purposes and
H25 0430  7    ideals, we do get from our Advisory Board in measures
H25 0440  6    so full that they can be appreciated only by those
H25 0450  4    of us who work here every day.
H25 0450 11       But the facts about our Advisory Board and its members'
H25 0460  7    duties are only one of several sets of facts about
H25 0470  5    the quest for advice, both reliable and imaginative,
H25 0480  1    on which to base our selections of Fellows. For example,
H25 0480 11    the interest of past members of the Foundation's Advisory
H25 0490  9    Board remains such that they place their knowledge
H25 0500  7    and judgments at our disposal much as they had done
H25 0510  6    when they were, formally, members of that Board. And,
H25 0520  2    besides, there are a large number of scholars, artists,
H25 0520 11    composers of music, novelists, poets, essayists, choreographers,
H25 0530  7    lawyers, servants of government, and men of affairs-
H25 0540  7    hundreds, indeed- who serve the Foundation well with
H25 0550  5    the advice they give us freely and gratis out of their
H25 0560  4    experience.
H25 0560  5       To all, the Foundation gives the kind of thanks
H25 0570  3    which are more than thanks: to them we are grateful
H25 0570 13    beyond the possibility of conveying in words how grateful
H25 0580  9    we are.
H25 0580 11    #@#
H25 0590  1    IT IS a truism of business that no business can be
H25 0590 12    better than its board of directors and its top management.
H25 0600  9    The same is true of every foundation. During the biennium
H25 0610  6    reviewed in this Report, our Board of Trustees named
H25 0620  5    able men, younger than the rest of us, to the Board
H25 0630  2    and to top management to insure future continuance
H25 0630 10    of the first-class administration of the Foundation's
H25 0640  5    affairs:
H25 0640  6       Dr& James Brown Fisk, physicist, President of the
H25 0650  8    Bell Telephone Laboratories, was elected to the Board
H25 0660  6    of Trustees. He is a member both of the National Academy
H25 0670  6    of Sciences and of the American Philosophical Society;
H25 0680  2    and he has served our country well as a scientific
H25 0690  1    statesman on international commissions.
H25 0690  5       Dr& Gordon N& Ray, Provost, Vice-President and Professor
H25 0700  7    of English in the University of Illinois, was appointed
H25 0710  5    Associate Secretary General. The Trustees of the Foundation
H25 0720  6    appointed Dr& Ray to that position with the stated
H25 0730  4    expectation that he would succeed the present Secretary
H25 0740  1    General upon the latter's eventual retirement. Dr&
H25 0740  8    Ray is a Fellow of the Foundation- appointed thrice
H25 0750  8    to assist his studies of William Makepeace Thackeray
H25 0760  5    and of H& G& Wells- and, before his appointment to
H25 0770  5    the Foundation's executive staff, had been given our
H25 0780  3    highest scholarly accolade, appointment to the Advisory
H25 0780 10    Board.
H25 0790  1       Referring further to the Foundation's officers,
H25 0790  7    Dr& James F& Mathias, for eleven years our discerning
H25 0800  9    colleague as Associate Secretary, was promoted to be
H25 0810  7    Secretary. He is a historian, with the great merit
H25 0820  5    of a historian's long view.
H25 0820 10       Also appointed to the Foundation's staff, as Assistant
H25 0830  7    Secretary, is Mr& J& Kellum Smith, Jr&. Mr& Smith,
H25 0840  7    like the present Secretary General, is a lawyer; and
H25 0850  6    lawyers- with the great virtues that they are trained
H25 0860  5    to read "the fine print" carefully and are able out
H25 0870  3    of professional experience to arrive at imaginative
H25 0870 10    solutions to difficult problems in many fields- are
H25 0880  8    indispensable even in a foundation office.
H25 0890  2       The present Secretary General has been the Foundation's
H25 0900  2    principal administrative officer continuously since
H25 0900  7    the Foundation's establishment thirty-five years ago.
H25 0910  7    But even he will not last indefinitely and the above-noted
H25 0920  8    new arrangements are, quite simply, made to assure
H25 0930  5    qualitative continuity in the Foundation's policies
H25 0940  2    and practices. The effective recognition of excellence
H25 0940  9    and its nurture has to be learned and is not learned
H25 0950 11    in a day, nor even in a year.
H25 0960  4    #@#
H25 0960  5    WE ARE not given to lamentations, neither personally
H25 0970  1    nor in these Reports. On the contrary, if this be an
H25 0970 12    apocalyptic era as is commonly said, we see it as an
H25 0980 11    era of opportunity. For, granting that there are great
H25 0990  6    present-day problems to be solved, these problems make
H25 1000  3    great demands; and by their demanding tend to create
H25 1010  1    resources of men's minds and hearts which problems
H25 1010  9    with easy answers do not bring forth. Of this, examples
H25 1020  8    are legion: Pericles speaking his funeral oration in
H25 1030  5    Ancient Greece's extremity after Thermopylae and making
H25 1040  3    it a testament of freedom; Jefferson writing the Declaration
H25 1050  2    of Independence amid the catastrophes of revolution;
H25 1060  1    Christ preaching the Sermon on the Mount, close to
H25 1060 10    his ultimate sacrifice; Shakespeare speaking with "the
H25 1070  5    indescribable gusto of the Elizabethan voice"- Keats's
H25 1080  4    words- in the days of the Spanish Armada's threats;
H25 1090  3    Isaac Newton, at the age of twenty-three, industriously
H25 1110  2    calculating logarithms "to two and fifty places" during
H25 1120  1    the great plague year in England, 1665; Winston Churchill's
H25 1130  1    Olympian, optimistic and resolute sayings when Britain
H25 1130  8    stood alone against the armed forces of tyranny less
H25 1140  8    than twenty years ago; the present-day explorations
H25 1150  4    of outer space, answering age-old questions of science
H25 1160  3    and philosophy, in the face of possible wars of extinction.
H25 1170  1       Forsan et haec olim meminisse iuvabit, as the Roman
H25 1170 10    poet, Virgil, declared with much more historical sense
H25 1180  8    than most writers of today. It gives, indeed, cause
H25 1190  7    for rejoicing to remember what many catastrophes of
H25 1200  3    the past produced; and it is to be noted also that
H25 1210  1    confidence should grow from remembering that great
H25 1210  8    men often appeared in the past to turn local catastrophe
H25 1220  8    into future good for all mankind.
H25 1230  1       For example, out of the social evils of the English
H25 1230 11    industrial revolution came the novels of Charles Dickens;
H25 1240  8    and his genius moved his readers to seek solutions
H25 1250  7    of those evils for all Western men- until today-, in
H25 1260  6    the industrialized West, these social evils substantially
H25 1270  2    do not exist. The solutions were not arrived at by
H25 1270 12    any theoreticians of the Karl Marx stripe but by men
H25 1280 10    of government- lawyers, most of them- and men of business.
H25 1290  8    These were educated men, who, as Mr& Justice Holmes
H25 1300  6    was fond of saying, formed their inductions out of
H25 1310  3    experience under the burden of responsibility. That
H25 1310 10    is, to put it realistically, they had to run their
H25 1320 10    businesses at a profit, or they had to get the votes
H25 1330  8    to get elected. Nevertheless, they made naught of Marx's
H25 1340  4    prophecy that capitalism would never pay the "workers"-
H25 1350  3    to use Marx's word- more than a subsistence wage, with
H25 1360  1    the consequence that increased productivity must inevitably
H25 1360  8    find its way into the capitalists' pockets with the
H25 1370  8    result, in turn, that the gap between the rich and
H25 1380  6    the poor would irrevocably widen and the misery of
H25 1390  2    the poor increase.
H25 1390  5       But as all understand who have eyes to see, nothing
H25 1400  4    of the kind has happened; indeed, the contrary has
H25 1410  1    happened. The gulf between the "rich" and the "poor"
H25 1410 10    has narrowed, in the industrialized Western world,
H25 1420  6    to the point that the word "poor" is hardly applicable.
H25 1430  5    And the reason this could happen is clear: men of government,
H25 1440  5    business men, lawyers and all who concerned themselves
H25 1450  2    with the welfare of their fellow men did not let their
H25 1460  1    concern to run their businesses at a profit restrict
H25 1460 10    the development of freedom and opportunity. Some would
H25 1470  6    say that they were not permitted to run their businesses
H25 1480  5    only for profit; and even putting it that way would
H25 1490  3    not prove that Marx was anything but wrong.
H25 1490 11       Sir Henry Sumner Maine, a hundred years before Communism
H25 1500  8    was a force to be reckoned with, wrote his brilliant
H25 1510  6    legal generalization, that "the progress of society
H25 1520  4    is from status to contract". The essence of contract
H25 1530  1    is that one is free to make a choice of what one will
H25 1530 14    or will not do. Hence, the condition of freedom is
H25 1540  8    a necessary condition for choice. The greater the range
H25 1550  5    of freedom for individual men, the greater the range
H25 1560  3    of choice; the greater the range of choice, the greater
H25 1570  1    the rate of change. For change is dependent on the
H25 1570 11    possibilities that individual men glimpse for the future.
H25 1580  7    But when there is not freedom and opportunity to choose,
H25 1590  5    men- individual men- must remain in status and society
H25 1600  3    does not, cannot progress.
H25 1600  7       The eternal truth is that progress- due, as it always
H25 1610  8    is, to individual creative genius- is just as dependent
H25 1620  7    on freedom as human life is dependent on the beating
H25 1630  2    of the heart.
H25 1630  5       And lest anybody think that considerations such
H25 1640  2    as these are not germane in a foundation report, let
H25 1640 12    me enlighten them with the truths that, under Communism
H25 1650  8    there would have been no capital with which to endow
H25 1660  7    the Foundation, and that there would not be that individual
H25 1670  5    freedom within which the Fellows might proceed, untrammeled
H25 1680  2    in every way, toward their discoveries, their creative
H25 1690  1    efforts for the good of mankind.
H25 1690  7    #@#
H25 1690  8    DURING the year 1959, we granted 354 Fellowships; in
H25 1700  6    1960, we granted 334. As heretofore, our Fellowships
H25 1710  3    are available to assist research in all fields of knowledge
H25 1720  2    and creative effort in all the arts. We do not favor
H25 1720 13    one field over another: we think that all inquiry,
H25 1730  8    all scholarly and artistic creation, is good- provided
H25 1740  5    only that it contributes to a sense and understanding
H25 1750  3    of the true ends of life, as all first-rate scholarship
H25 1760  1    and artistic creation does. Indeed, if pressed, we
H25 1760  9    would say what the late Robert Henri, American painter,
H25 1770  7    said to a pupil, "Anything will do for a subject: it's
H25 1780  7    what you do with it that counts".
H25 1790  1       Thus, we have no part, and want none, in current
H25 1790 11    discussions of the relative importance of science,
H25 1800  7    the social studies, the humanities, the creative arts.
H25 1810  4    We want no part in such discussions, because we think
H25 1820  3    them largely futile; and we think them largely futile
H25 1820 12    because, for true excellence of accomplishment, every
H25 1830  7    scholar and every artist must cross boundaries of knowledge
H25 1840  7    and boundaries of points of view.
H26 0010  1       When the Brown + Sharpe Manufacturing Company reached
H26 0010  9    its 125th year as a going industrial concern during
H26 0020  9    1958, it became an almost unique institution in the
H26 0030  5    mechanical world.
H26 0030  7       With its history standing astride all but the very
H26 0040  7    beginnings of the industrial revolution, Brown + Sharpe
H26 0050  4    has become over the years a singular monument to the
H26 0060  3    mechanical foresight of its founder, Joseph R& Brown,
H26 0060 11    and a world-renowned synonym for precision and progress
H26 0070  9    in metalworking technology.
H26 0080  1       Joseph R& Brown grew up in the bustle and enterprise
H26 0090  1    of New England between 1810 and 1830. He was early
H26 0090 11    exposed to the mechanical world, and in his youth often
H26 0100  9    helped his father, David Brown, master clock and watchmaker,
H26 0110  6    as he plied his trade. At the age of 17 he became an
H26 0120  7    apprentice machinist at the shop of Walcott + Harris
H26 0130  2    in Valley Falls, Rhode Island, and following two or
H26 0130 11    three other jobs in quick succession after graduation,
H26 0140  8    he went into business for himself in 1831, making lathes
H26 0150  7    and small tools. This enterprise led to a father-and-son
H26 0160  7    combination beginning in 1833, under the name D& Brown
H26 0170  3    + Son, a business which eventually grew into the modern
H26 0180  1    corporation we now call Brown + Sharpe.
H26 0180  8       The years of Joseph's partnership with his father
H26 0190  5    were numbered. In 1838, a devastating fire gutted their
H26 0200  4    small shop and soon thereafter David Brown moved west
H26 0210  2    to Illinois, settling on a land grant in his declining
H26 0210 12    years.
H26 0220  1       Joseph Brown continued in business by himself, quickly
H26 0220  9    rebuilding the establishment which had been lost in
H26 0230  8    the fire and beginning those first steps which were
H26 0240  5    to establish him as a pioneer in raising the standards
H26 0250  2    of accuracy of machine shop practice throughout the
H26 0250 10    world.
H26 0260  1       Much of his genius, of course, sprang from his familiarity
H26 0260 11    with clock movements. During these early years the
H26 0270  8    repair of watches and clocks and the building of special
H26 0280  7    clocks for church steeples formed an important part
H26 0290  4    of the young man's occupation. He became particularly
H26 0300  1    interested in graduating and precision measurement
H26 0300  7    during the 1840's, and his thinking along these lines
H26 0310  7    developed considerably during this period. But his
H26 0320  5    business also grew, and we are told that Mr& Brown
H26 0330  2    found it increasingly difficult to devote as much time
H26 0340  8    to his creative thinking as his inclinations led him
H26 0350  8    to desire. It must have been with some pleasure and
H26 0360  6    relief that on September 12, 1848, Joseph Brown made
H26 0370  3    the momentous entry in his job book, in his characteristically
H26 0380  1    cryptic style, "Lucian Sharpe came to work for me this
H26 0380 11    day as an apprentice".
H26 0390  4       The young apprentice apparently did well by Mr&
H26 0400  3    Brown, for in the third year of his apprenticeship
H26 0400 12    Lucian was offered a full partnership in the firm;
H26 0410  9    the company became "J& R& Brown + Sharpe", and entered
H26 0420  7    into a new and important period of its development.
H26 0430  5    Mr& Sharpe's arrival in the business did indeed provide
H26 0440  4    what Mr& Brown had most coveted- time for "tinkering",
H26 0450  1    and the opportunity of carrying out in the back room
H26 0450 11    those developments in precision graduation which most
H26 0460  7    interested him at that time.
H26 0470  2       By 1853, the new partnership announced the precision
H26 0480  1    vernier caliper as the first fruit of their joint efforts.
H26 0480 11    The basic significance of this invention helped them
H26 0490  7    to follow it rapidly in 1855 by the development of
H26 0500  5    a unique precision gear cutting and dividing engine.
H26 0510  2    That development, in turn, formed the foundation of
H26 0510 10    still more significant expansions in later years- in
H26 0520  7    gear cutting, in circular graduating, in index drilling,
H26 0530  5    and in many other fields where accuracy was a paramount
H26 0540  4    requirement.
H26 0540  5       Throughout their careers, both Mr& Brown and Mr&
H26 0550  5    Sharpe were interested in the problem of setting up
H26 0560  2    standards of measurement for the mechanical trades.
H26 0560  9    Several efforts were made in this direction, and though
H26 0570  9    not all of them survive to this day, the Brown + Sharpe
H26 0580  8    wire gage system was eventually adopted as the American
H26 0590  4    standard and is still in common use today.
H26 0600  1       As one development followed another, the company's
H26 0600  8    reputation for precision in the graduating field brought
H26 0610  7    it broader and broader opportunities for expansion
H26 0620  3    in precision manufacture. In 1858, the partnership
H26 0630  1    began manufacturing the Willcox + Gibbs sewing machine.
H26 0640  1       As the story goes, Mr& Gibbs, who originally came
H26 0640 10    from the back counties of the Commonwealth of Virginia,
H26 0650  7    saw an illustration in a magazine of the famous Howe
H26 0660  6    sewing machine. Curious as to what made it work, he
H26 0670  4    built a crude model of it in wood, and filed a piece
H26 0670 16    of steel until he succeeded in making a metal pickup
H26 0680  9    for the thread, enabling the crude machine to take
H26 0690  6    stitches. When he showed this model as his "solution"
H26 0700  2    as to how the Howe sewing machine operated, he was
H26 0710  1    told he was "wrong", and discovered to his amazement
H26 0710 10    that the Howe Machine, which was unknown to him in
H26 0720  8    detail, used two threads while the one that he had
H26 0730  6    perfected used only one. Thus was invented the single
H26 0740  2    thread sewing machine, which Mr& Gibbs in partnership
H26 0740 10    with Mr& Willcox decided to bring to Brown + Sharpe
H26 0750 10    with the proposal that the small company undertake
H26 0760  6    its manufacture.
H26 0760  8       The new work was a boon to the partnership, not
H26 0770  8    only for its own value but particularly for the stimulation
H26 0780  4    it provided to the imagination of J& R& Brown toward
H26 0790  3    yet further developments for production equipment.
H26 0790  9       The turret screw machine, now known as the Brown
H26 0800 10    + Sharpe hand screw machine, takes its ancestry directly
H26 0810  7    from Mr& Brown's efforts to introduce equipment to
H26 0820  5    simplify the manufacture of the sewing machine. Mr&
H26 0830  3    Brown made important additions to the arts in screw
H26 0830 12    machine design by drastically improving the means for
H26 0840  8    revolving the turret, by introducing automatic feeding
H26 0850  5    devices for the stock, and reversible tap and die holders.
H26 0860  5       In 1861, Mr& Brown's attention was called to yet
H26 0870  5    another basic production problem- the manufacture of
H26 0880  2    twist drills. At that time, during the Civil War, Union
H26 0880 12    muskets were being manufactured in Providence and the
H26 0890  8    drills to drill them were being hand-filed with rattail
H26 0900  7    files. This process neither satisfied the urgent production
H26 0910  4    schedules nor Mr& Brown's imagination of the possibilities
H26 0920  4    in the situation. The child of this problem was Mr&
H26 0930  2    Brown's famous Serial No& 1 Universal Milling Machine,
H26 0940  1    the archtype from which is descended today's universal
H26 0940  9    knee-type milling machine used throughout the world.
H26 0950  7    The original machine, bearing its famous serial number,
H26 0960  5    is still on exhibition at the Brown + Sharpe Precision
H26 0970  2    Center in Providence.
H26 0970  5       During the Civil War period Mr& Brown also invented
H26 0980  6    the Brown + Sharpe formed tooth gear cutter, a basic
H26 0990  5    invention which ultimately revolutionized the world's
H26 1000  1    gear manufacturing industry by changing its basic economics.
H26 1010  1    Up until that time it had been possible to make cutters
H26 1010 12    for making gear teeth, but they were good for only
H26 1020  8    one sharpening. As soon as the time came for re-sharpening,
H26 1030  6    the precise form of the gear tooth was lost and a new
H26 1040  4    cutter had to be made. This process made the economical
H26 1050  1    manufacture of gears questionable until some way could
H26 1050  9    be found to permit the repeated re-sharpening of gear
H26 1060  7    tooth cutters without the loss of the precision form.
H26 1070  5    Mr& Brown's invention achieved this and, as a byproduct,
H26 1080  4    formed the cornerstone of Brown + Sharpe's position
H26 1090  1    of leadership in the gear making equipment field which
H26 1090 10    lasted until the 1920's when superceded by other methods.
H26 1100  8       The micrometer caliper, as a common workshop tool,
H26 1110  7    also owes much to J& R& Brown. Although Mr& Brown was
H26 1120  5    not himself its inventor (it was a French idea), it
H26 1130  3    is typical that his intuition first conceived the importance
H26 1140  1    of mass producing this basic tool for general use.
H26 1140 10    So it was that when Mr& Brown and Mr& Sharpe first
H26 1150  9    saw the French tool on exhibition in Paris in 1868,
H26 1160  7    they brought a sample with them to the United States
H26 1170  3    and started Brown + Sharpe in yet another field where
H26 1180  1    it retains its leadership to this day.
H26 1180  8       The final achievement of Mr& Brown's long and interesting
H26 1190  7    mechanical career runs a close second in importance
H26 1200  5    to his development of the universal milling machine.
H26 1210  2    That achievement was his creation of the universal
H26 1210 10    grinding machine, which made its appearance in 1876
H26 1220  8    at the Philadelphia Centennial Exposition. This machine,
H26 1230  4    like its milling counterpart, was the antecedent of
H26 1240  4    a machine-family used to this very day in precision
H26 1250  1    metalworking shops throughout the world. Along with
H26 1250  8    J& R& Brown's other major developments, the universal
H26 1260  6    grinding machine was profoundly influential in setting
H26 1270  4    the course of Brown + Sharpe for many years to come.
H26 1280  4       Following Mr& Brown's death, there came forward
H26 1290  2    in the Brown + Sharpe organization many other men who
H26 1290 12    contributed greatly to the development of the company.
H26 1300  8    One such man was Samuel Darling.
H26 1310  2       As head of the firm Darling + Swartz, Mr& Darling
H26 1320  2    began by challenging Brown + Sharpe to its keenest
H26 1320 11    competition during the 1850's and early 60's. In 1868,
H26 1330  9    however, a truce was called between the companies,
H26 1340  6    and the partnership of Darling, brown + Sharpe was
H26 1350  4    formed. Between that year and the buying out of Mr&
H26 1360  1    Darling's interest in 1892, a large portion of the
H26 1360 10    company's precision tool business was carried out under
H26 1370  7    the name of Darling, Brown + Sharpe, and to this day
H26 1380  7    many old precision tools are in use still bearing that
H26 1390  3    famous trademark.
H26 1390  5       Perhaps the outstanding standard bearer of Mr& Brown's
H26 1400  5    tradition for accuracy was Mr& Oscar J& Beale, whose
H26 1410  4    mechanical genius closely paralleled that of Mr& Brown,
H26 1420  3    and whose particular forte was the development of the
H26 1420 12    exceedingly accurate measuring machinery that enabled
H26 1430  6    Brown + Sharpe to manufacture gages, and therefore
H26 1440  6    its products, with an accuracy exceeding anything then
H26 1450  3    available elsewhere in the world.
H26 1450  8       Also important on the Brown + Sharpe scene, at the
H26 1460  9    turn of the century, was Mr& Richmond Viall, Works
H26 1470  5    Superintendent of the company from 1876 to 1910. Mr&
H26 1480  5    Viall possessed remarkable talents for the leadership
H26 1490  1    and development of men. He was an ardent champion of
H26 1490 11    the Brown + Sharpe Apprentice Program and personal
H26 1500  7    counselor to countless able men who first developed
H26 1510  5    their industrial talents with the company. In one sense
H26 1520  4    it can be said that one of the most important Brown
H26 1520 15    + Sharpe products over the years has been the men who
H26 1530 10    began work with the company and subsequently came to
H26 1540  6    places of industrial eminence throughout the nation
H26 1550  3    and even abroad.
H26 1550  6       Commencing with the death of Lucian Sharpe in 1899,
H26 1560  5    the name of Henry D& Sharpe was for more than 50 years
H26 1570  4    closely interwoven with the destiny of the company.
H26 1570 12    During his presidency, the company's physical plant
H26 1580  7    was enormously expanded, and the length and breadth
H26 1590  6    of the Brown + Sharpe machine tool line became the
H26 1600  4    greatest in the world. During the early part of this
H26 1610  1    century, the Brown + Sharpe works in Providence were
H26 1610 10    unchallenged as the largest single manufacturing facility
H26 1620  7    devoted exclusively to precision machinery and tool
H26 1630  5    manufacture anywhere in the world.
H26 1640  1       During these years the company's product line followed
H26 1640  8    the basic tenets laid down by Mr& Brown. It expanded
H26 1650  8    from hand screw machines to automatic screw machines,
H26 1670  5    from simple formed-tooth gear cutting machines to gear
H26 1680  3    hobbing machines and a large contract gear manufacturing
H26 1690  1    business, from rudimentary belt-driven universal milling
H26 1690  8    machines to a broad line of elaborately controlled
H26 1700  7    knee-type and manufacturing type milling machines.
H26 1710  3    In the grinding machine field, expansion went far from
H26 1720  2    universal grinders alone and took in cylindrical grinders,
H26 1720 10    surface grinders, and a wide variety of special and
H26 1730  9    semi-special models.
H26 1740  1       In 1951, Henry D& Sharpe, Jr& succeeded his father
H26 1740 10    and continued the company's development as a major
H26 1760  7    factor in the metal-working equipment business. The
H26 1770  4    company is still broadening its line and is now active
H26 1780  4    on four major fronts.
H26 1780  8       The Machine Tool Division is currently producing
H26 1790  4    Brown + Sharpe single spindle automatic screw machines,
H26 1800  2    grinding machines of many types, and knee and bed-type
H26 1810  1    milling machines. Recently added is the Brown + Sharpe
H26 1810 10    turret drilling machine which introduces the company
H26 1820  6    to an entirely new field of tool development.
H26 1830  2       In the Industrial Products Division, the company
H26 1840  1    manufactures and markets a wide line of precision gaging
H26 1840 10    and inspection equipment, machinists' tools- including
H26 1850  5    micrometers, Vernier calipers, and accessories.
H26 1860  4       In the Cutting Tool Division, the principal products
H26 1870  4    include a wide variety of high speed steel milling
H26 1880  1    cutters, end mills and saws.
H27 0010  1    Sales and net income for the year ended December 31,
H27 0010 11    1960 showed an improvement over 1959. Net income was
H27 0020  7    $2,557,111, or $3.11 per share on 821,220 common shares
H27 0030  5    currently outstanding, as compared to $2,323,867 or
H27 0040  2    $2.82 per share in 1959, adjusted to the same number
H27 0040 12    of shares.
H27 0050  1       Sales and other operating income increased 25.1%
H27 0050  8    from $24,926,615 in 1959 to $31,179,816 in 1960. This
H27 0060  8    increase was sufficient to overcome the effect on net
H27 0070  6    income of higher costs of manufacture and increased
H27 0080  2    expenditures on research and development.
H27 0080  7       In spite of the fact that our largest market, the
H27 0090  9    textile industry, was affected substantially by the
H27 0100  4    current decline in business activity, we have been
H27 0110  2    able to produce and deliver our machines throughout
H27 0110 10    the year 1960 at a rate materially higher than during
H27 0120  8    1959.
H27 0120  9    #OUTLOOK FOR CURRENT YEAR#
H27 0130  2    Our current rate of incoming orders has now contracted
H27 0130 11    and unless this trend can be reversed, our production
H27 0140  9    for 1961 will be lower than for 1960.
H27 0150  4       However, the healthy inventory position of the textile
H27 0160  3    industry lends support to the broadly expressed belief
H27 0160 11    that improvement in that industry can be expected by
H27 0170  9    the second half of 1961.
H27 0180  1    #NEED FOR SOUND TAX POLICY#
H27 0180  6    In connection with our continuing development of new
H27 0190  4    and more efficient mill machinery, a sounder U& S&
H27 0200  2    income tax policy on depreciation of production equipment,
H27 0200 10    enabling the mills to charge off the cost of new machines
H27 0210 11    on a more realistic basis, could, if adopted, have
H27 0220  6    favorable effects on Leesona's business in the next
H27 0230  5    few years.
H27 0230  7       Such a depreciation policy would also, we believe,
H27 0240  4    prove a very important factor in strengthening the
H27 0250  1    competitive position of the U& S& textile and other
H27 0250 10    industries, thus helping to strengthen the position
H27 0260  7    of the dollar in foreign exchange.
H27 0270  1    #RESEARCH AND DEVELOPMENT#
H27 0270  4    Our research and development program, serving as it
H27 0280  4    does an industry which must compete against low-cost
H27 0290  1    production throughout the world, continues to have
H27 0290  8    primary emphasis at Leesona.
H27 0300  3       This program is based on the policy of designing
H27 0310  1    and building efficient machines which will help produce
H27 0310  9    better textile values- fabrics whose cost in relation
H27 0320  6    to quality, fashion and utility provide the consumer
H27 0330  4    with better textile products for the money.
H27 0340  1       Such policy involves continuing effort to improve
H27 0340  8    on existing mill equipment, in terms of efficiency
H27 0350  7    and versatility. But more important, we believe, it
H27 0360  4    must concentrate on the development of entirely new
H27 0370  2    concepts in textile processing as do the Unifil loom
H27 0370 11    winder and our more recent Uniconer automatic coning
H27 0380  7    machine.
H27 0380  8    #BUDGET INCREASED#
H27 0390  1    On this basis, our already substantial budget for research
H27 0390 10    and development has been further increased in recent
H27 0400  8    years in order to finance the continuing engineering
H27 0410  4    and design work essential to Leesona's future growth
H27 0420  3    in sales and earnings.
H27 0420  7       Much of this necessary increase in research and
H27 0430  5    development, though properly chargeable to current
H27 0440  2    expenses, is not reflected in earnings until projects
H27 0440 10    are completed and the new machines sold in quantity,
H27 0450  8    usually over a period of several years.
H27 0460  3    #STRETCH YARN MACHINES#
H27 0460  6    In December we began to ship our ultra-high-speed stretch
H27 0470  7    yarn machines. These machines produce the higher quality
H27 0480  4    stretch yarns required in weaving stretch and textured
H27 0490  1    fabrics. During the past year, great progress has been
H27 0490 10    made by the weaving mills in creating new stretch and
H27 0500  9    textured fabrics. Fashion centers are now predicting
H27 0510  5    broad acceptance of sports apparel and improved "wash
H27 0520  3    and wear" dresses and blouses made from these fabrics.
H27 0530  1       This machine, operating at speeds up to 350,000
H27 0530  9    revolutions per minute, is believed to provide one
H27 0540  8    of the fastest mechanical operations in industry today.
H27 0550  4    It transfers yarn directly from the producers' largest
H27 0560  2    package into ideal supply packages for use on Unifil
H27 0560 11    loom winders in weaving stretch yarn fabrics.
H27 0570  7    #LARGE-PACKAGE TWISTER#
H27 0580  1    Our new large-package ring twister for glass fiber
H27 0580 10    yarns is performing well in our customers' mills. Later
H27 0590  7    in the year, additional types of this Leesona twister
H27 0600  5    will be made available to mills for other man-made
H27 0610  3    fibers and natural yarns. These machines are designed
H27 0610 11    to provide higher operating speeds, larger yarn packages,
H27 0620  7    and greater flexibility of application to different
H27 0630  5    types of yarn. This we believe will substantially broaden
H27 0640  3    the potential market for the equipment.
H27 0640  9    #UNICONER#
H27 0650  1    Major activity at Providence in 1961 will involve the
H27 0650 10    scheduled completion of tooling for production of the
H27 0660  8    Uniconer automatic coning machine. This work is progressing
H27 0670  7    on schedule and we expect to make initial shipments
H27 0680  4    in the fourth quarter of this year. This machine was
H27 0690  2    demonstrated in two textile machinery exhibitions last
H27 0690  9    year and was well received by the industry. The potential
H27 0700  9    market for the machine should be comparable to that
H27 0710  6    of the Unifil loom winder.
H27 0720  1       The Uniconer has several outstanding features- it
H27 0720  7    operates with much greater efficiency than existing
H27 0730  5    equipment; it incorporates an automatic knot-tying
H27 0740  3    device on each spindle, and it will knot a break in
H27 0750  1    the yarn in 10 seconds as well as tie in new bobbins
H27 0750 13    as the running end is exhausted.
H27 0760  3       Because the bobin-to-cone winding process is a relatively
H27 0770  2    high-cost operation for the mill, the almost complete
H27 0770 11    automation provided by the Uniconer can mean important
H27 0780  8    economies in textile production, at the same time upgrading
H27 0790  7    quality. Many mills have already placed firm orders
H27 0800  4    for this machine.
H27 0800  7    #NEW UNIFIL APPLICATION#
H27 0810  1    A new application for the Unifil loom winder, running
H27 0810 10    single filling for box looms, will broaden mill use
H27 0820  8    of this equipment.
H27 0820 11    #TAKE-UP MACHINES#
H27 0830  2    A new spinning take-up machine has been developed to
H27 0830 12    facilitate the use of our take-up machine in the production
H27 0840 11    of thermoplastic yarns. It is equipped with electronic
H27 0850  7    controls that can be set to hold precise tension and
H27 0860  5    speed.
H27 0860  6       This new machine takes up filament yarn from spinneret
H27 0870  4    or extruder and winds large packages at speeds up to
H27 0880  3    6,000 feet per minute. It is equipped with an automatic
H27 0880 13    threading device to reduce waste and handling time.
H27 0890  8       Our take-up machines and our twister-coners are
H27 0900  6    undergoing important pilot plant testing for application
H27 0910  3    with new high polymer yarns, in several fiber producing
H27 0920  1    plants. We look forward to a stronger position in this
H27 0920 11    expanding field.
H27 0930  2    #DIVERSIFICATION PLANS#
H27 0930  4    We are interested in further diversification into other
H27 0940  3    fields of capital goods, or components for industrial
H27 0950  1    products, and have recently intensified our efforts
H27 0950  8    in that direction.
H27 0960  1    #PATTERSON MOOS RESEARCH#
H27 0960  4    Our Patterson Moos Research Division has made further
H27 0970  5    very encouraging progress in development of fuel cells.
H27 0980  3    The cooperation of our exclusive American licensee,
H27 0980 10    Pratt + Whitney Aircraft Division of United Aircraft
H27 0990  8    Corporation, has been important in this work. In addition
H27 1010  9    to its major effort on fuel cells, Patterson Moos Research
H27 1020  5    Division is continuing to carry on research in other
H27 1030  5    fields, both under contract for the Defense Department,
H27 1040  1    other government agencies and for our own account.
H27 1040  9    ~PMR is currently supplying components vital to the
H27 1050  8    Titan and Minuteman programs.
H27 1060  2       We have recently entered into an agreement with
H27 1060 10    Compagnie Generale de Telegraphie Sans Fil (~CSF) of
H27 1070  8    France for the exclusive exchange of technical information
H27 1080  7    on thermoelectric materials. The agreement gives us
H27 1090  5    rights for manufacturing and marketing of such materials
H27 1100  4    in the United States. Initially we will import the
H27 1110  1    thermoelectric materials and modules from France but
H27 1110  8    later we will manufacture in this country. There is
H27 1120  7    a rapidly growing demand for this material, primarily
H27 1130  3    from the military. Further research, we believe, will
H27 1140  2    develop important commercial applications.
H27 1140  6       A project for the Air Force has been completed in
H27 1150  8    which the ~NAIR infrared detecting device was developed
H27 1160  5    for area monitoring of noxious or dangerous gases.
H27 1170  2       We are initiating research on the use of solid state
H27 1180  1    materials for infrared detection using a method which
H27 1180  9    will not require cooling of materials to attain high
H27 1190  7    sensitivity.
H27 1190  8       The rapid advance in science today suggests many
H27 1200  7    other avenues of investigation. Our plan is to keep
H27 1210  6    abreast of these advances, and select for development
H27 1220  1    those fields which seem most promising for our special
H27 1220 10    capabilities.
H27 1230  1    #NEW PLANT FACILITIES#
H27 1230  4    Early in August we broke ground for a new $3,500,000
H27 1240  5    plant in Warwick, Rhode Island, which will house our
H27 1250  2    textile and coil winding machinery operations. Construction
H27 1250  9    is well along, and the plant is scheduled for completion
H27 1260 10    in November of this year. All operations now carried
H27 1270  7    on at our plant at Cranston will be transferred to
H27 1280  4    Warwick. Operations in the new plant should be producing
H27 1290  2    efficiently early in 1962.
H27 1290  6       An architect's sketch of the new plant is shown
H27 1300  7    on the front cover. The building will contain 430,000
H27 1310  2    square feet, approximately the same as our present
H27 1310 10    plant. However, its modern one-story layout is designed
H27 1320  8    to increase our production capacity, permit more efficient
H27 1330  5    manufacturing, and substantially reduce current repair
H27 1340  4    and maintenance costs.
H27 1340  7       A major consideration in the choice of the Warwick
H27 1350  7    site, four miles from Cranston, was the fact that it
H27 1360  5    permits retention of our present trained and highly
H27 1370  1    skilled work force.
H27 1370  4       We have entered into an agreement for the sale of
H27 1380  3    the present Cranston properties, effective as soon
H27 1380 10    as we have completed removal to our new plant.
H27 1390  7    #BRITISH SUBSIDIARY#
H27 1390  9    During the year our British subsidiary, Leesona-Holt,
H27 1400  8    Limited, expanded its plant in Darwen, England, and
H27 1410  7    added machine tool capacity. The operations of its
H27 1420  4    other plant in Rochdale and Leesona's former operations
H27 1430  1    in Manchester were transferred to a recently acquired
H27 1430  9    plant in the adjoining town of Heywood. Layout and
H27 1440  9    equipment were modernized and improved to obtain increased
H27 1450  6    production on an efficient basis. The area available
H27 1460  4    at Heywood is approximately three times the size of
H27 1470  2    the former Rochdale and Manchester locations. In addition,
H27 1470 10    land has been purchased to permit doubling the size
H27 1480  9    of the plant in the future.
H27 1490  1    #FINANCIAL DEVELOPMENTS#
H27 1490  3    The new Warwick plant is being built at our expense
H27 1500  4    and under our direction. It will be transfered on completion
H27 1510  2    to The Industrial Foundation of Rhode Island, a non-profit
H27 1520  1    organization, which will reimburse us for the cost
H27 1520  9    of construction. we will then occupy the new plant
H27 1530  8    under lease, with an option to purchase. These arrangements
H27 1540  3    are, in our opinion, very favorable to Leesona. Interim
H27 1550  2    financing of construction costs is provided by a short
H27 1560  1    term loan from The Chase Manhattan Bank.
H27 1560  8       In addition to expenditures on the Warwick plant,
H27 1570  5    we have invested approximately $1,961,000 for machinery
H27 1580  3    and equipment at Cranston, and for new machinery, plant
H27 1590  2    and equipment at Leesona-Holt, Limited. We believe
H27 1590 10    that these improved facilities will contribute income
H27 1600  6    and effect savings which will fully justify the investment.
H27 1610  6       Long term loans have been reduced by $395,000 to
H27 1620  5    $2,461,000. Inventories increased $625,561 to $8,313,514
H27 1630  2    during the year and should decline in coming months.
H27 1630 11    Thus we enter 1961 in a strong financial position.
H27 1640  9    #EMPLOYEE CONTRACTS#
H27 1650  1    In accordance with the two-year contract signed in
H27 1650 10    May, 1959, with the International Association of Machinists,
H27 1660  6    ~AFL-CIO, wages of hourly employees were increased
H27 1670  6    by 4% in May, 1960, and pay levels for non-exempt salaried
H27 1680  5    employees were increased proportionately. In addition,
H27 1690  3    Blue Cross coverage for all employees and their dependents
H27 1700  1    was extended to provide the full cost of semi-private
H27 1700 11    hospital accommodations.
H27 1710  2    #PERSONNEL BENEFITS#
H27 1710  4    In addition to direct salaries and wages, the Company
H27 1720  5    paid or accrued during the year the following amounts
H27 1730  2    for the benefit of employees: @
H27 1730  8       During the pension year ended December 31, 1960,
H27 1740  6    23 employees retired, making a total of 171 currently
H27 1750  4    retired under the Company's pension plan. At December
H27 1760  2    13, 1960 the fund held by the Industrial National Bank
H27 1760 12    of Providence, as trustee for payment of past and future
H27 1770 10    service pensions to qualified members of the plan,
H27 1780  7    totaled $2,412,616.
H27 1790  1       The basic market for textiles is growing with the
H27 1790 10    expansion of the population that began 20 years ago.
H27 1800  8    Another growth factor is increased consumer demand
H27 1810  3    for better quality and larger quantities of fabrics
H27 1820  1    that go with a rising standard of living.
H27 1820  9       As in many other industries, rising costs and intense
H27 1830  6    competition, both domestic and foreign, have exerted
H27 1840  4    increasing pressure on earnings of the textile industry
H27 1850  1    in recent years.
H27 1850  4    #INCREASED EFFICIENCY#
H27 1850  6    In textiles, as elsewhere, a major part of the solution
H27 1860  7    lies in greater efficiency and higher productivity.
H27 1870  3       As a designer and manufacturer of textile production
H27 1880  2    machinery, Leesona and other companies in its industry
H27 1880 10    have sought to meet this challenge with new or improved
H27 1890 10    equipment and methods that would increase production,
H27 1900  5    yet maintain both quality and flexibility.
H27 1910  1    #PROBLEMS OF SHIFTING STYLES#
H27 1910  5    The problem of efficient production in textiles is
H27 1920  5    complicated by the fact that the industry serves large
H27 1930  2    markets which shift quickly with changes of fashion
H27 1930 10    in apparel or home decoration. Production must be adjusted
H27 1940  8    accordingly, at minimum cost and quickly.
H27 1950  5       In addition, production machinery must in many cases
H27 1960  4    be designed to handle with equal efficiency both natural
H27 1970  1    fibers and the increasing number of synthetics, as
H27 1970  9    well as blends.
H28 0010  1    Following the term of service in Japan, each emissary
H28 0010 10    returns for a brief visit to the campus to interpret
H28 0020  8    his experience to the college community. The Carleton
H28 0030  4    Service Fund provides the financial support for this
H28 0040  3    program.
H28 0040  4    #MUSICAL ACTIVITIES#
H28 0040  6    THE COLLEGE was one of the first to recognize the importance
H28 0050  8    of music not only as a definite part of the curriculum
H28 0060  5    but as a vital adjunct to campus life. Extensive facilities
H28 0070  2    for group performance are provided by maintaining,
H28 0070  9    under skilled direction, the Choir, the Orchestra,
H28 0080  7    the Band, the Glee Club, and smaller ensembles of wind
H28 0090  7    and string players.
H28 0090 10       All students are invited to participate in any of
H28 0100  9    the musical organizations for which they qualify. Orchestra,
H28 0110  6    Band, and Choir have auditions during the week preceding
H28 0120  5    the first day of classes. The Glee Club is open to
H28 0130  4    all students and faculty with no auditions necessary
H28 0130 12    for membership.
H28 0140  2       In addition to the many appearances of these organizations
H28 0150  1    throughout the college year, there are concerts by
H28 0150  9    students of the music department, by members of the
H28 0160  8    music faculty, and by visiting artists.
H28 0170  2       Student musical organizations are the Knights of
H28 0180  1    Carleton and the Overtones (men's vocal groups), and
H28 0180  9    the Keynotes (a women's singing group). These student-directed
H28 0190  8    organizations include eight to ten members each; they
H28 0200  7    perform at many campus social events.
H28 0210  2    #RELIGIOUS ACTIVITIES#
H28 0210  4    FROM THE FOUNDING of the College those responsible
H28 0220  3    for its management have planned to provide its students
H28 0230  2    favorable conditions for personal religious development
H28 0230  8    and to offer opportunities through the curriculum and
H28 0240  7    otherwise for understanding the meaning and importance
H28 0250  5    of religion. Courses are offered in ethics, the philosophy
H28 0260  4    and history of religion, Christian thought and history,
H28 0270  2    and the Bible. Carleton aims throughout its entire
H28 0270 10    teaching program to represent a point of view and a
H28 0280 10    spirit which will contribute to the moral and religious
H28 0290  6    development of its students.
H28 0300  1       A COLLEGE SERVICE OF WORSHIP is held each Sunday
H28 0300  9    morning at eleven o'clock in the Chapel. The sermons
H28 0310  7    are given by the College Chaplain, by members of the
H28 0320  5    faculty, or by guest preachers. Music is furnished
H28 0330  1    by the Carleton College Choir.
H28 0330  6       CHAPEL SERVICES are held weekly. These services
H28 0340  6    at which attendance is voluntary are led by the Chaplain,
H28 0350  5    by the President of the College, by selected faculty
H28 0360  2    members, students, and visitors. The service is brief
H28 0360 10    and variety in forms of worship is practiced.
H28 0370  7       A SUNDAY EVENING PROGRAM provides theological lectures,
H28 0380  4    music, drama, and films related to the issues of the
H28 0390  6    Judeo-Christian tradition.
H28 0390  9       ATTENDANCE is required at the College Service of
H28 0400  8    Worship or at the Sunday Evening Program or at any
H28 0410  6    regularly organized service of public worship. Each
H28 0420  3    semester every student must attend ten of the services
H28 0430  1    or religious meetings. Attendance at the Chapel Service
H28 0430  9    is voluntary.
H28 0440  1       RELIGIOUS ORGANIZATIONS include the groups described
H28 0450  1    below. The Y&M&C&A& and Y&W&C&A& at Carleton are connected
H28 0460  3    with the corresponding national organizations and carry
H28 0470  1    out their general purposes. Occasional meetings are
H28 0470  8    held for the whole membership, usually with a guest
H28 0490  7    speaker, while smaller discussion groups meet more
H28 0500  4    frequently. The Associations sponsor many traditional
H28 0510  1    campus events and provide students with opportunities
H28 0510  8    to form new friendships, to broaden their interests,
H28 0520  6    and to engage in worthwhile service projects.
H28 0530  3       There are other organizations representing several
H28 0540  2    of the denominational groups. Included are the following:
H28 0540 10    Baptist Student Movement, Canterbury Club (Episcopal),
H28 0550  6    Christian Science Organization, Friends' Meeting for
H28 0560  6    Worship, Hillel (Jewish), Liberal Religious Fellowship,
H28 0570  4    Lutheran Student Association, Newman Club (Roman Catholic),
H28 0580  5    Presbyterian Student Fellowship, United Student Fellowship
H28 0590  4    (Congregational-Baptist), and Wesley Fellowship (Methodist).
H28 0600  3       Student religious organizations are co-ordinated
H28 0610  4    under the Religious Activities Committee, a standing
H28 0620  1    committee of the Carleton Student Association.
H28 0620  7       THE NORTHFIELD CHURCHES include the following: Alliance,
H28 0630  6    Congregational-Baptist, Episcopal, Lutheran (Norwegian,
H28 0640  4    Danish, Missouri Synod, and Bethel), Methodist, Moravian,
H28 0650  5    Pentecostal, and Roman Catholic.
H28 0660  1    #THEATER#
H28 0660  2    THE PURPOSE of producing plays at the College is three-fold:
H28 0670  4    to provide the Carleton students with the best possible
H28 0680  1    opportunity for theater-going within the limits set
H28 0680  9    by the maturity and experience of the performers and
H28 0690  7    the theatrical facilities available; to encourage the
H28 0700  4    practice of attending the theater; and to develop a
H28 0710  4    discriminating audience for good drama and sensitive
H28 0710 11    performance.
H28 0720  1       Dramatic activity at the College is organized and
H28 0720  9    carried on by The Carleton Players, which is to say
H28 0730 10    by all students who are so inclined to advance these
H28 0740  7    aims.
H28 0740  8       For the 1960-1961 season, The Carleton Players have
H28 0750  4    announced Blood Wedding by Federico Garcia Lorca, The
H28 0760  4    Knight of the Burning Pestle by Beaumont and Fletcher
H28 0770  3    and A Moon for the Misbegotten by Eugene O'Neill, with
H28 0780  2    a pre-season production of The Glass Menagerie by Tennessee
H28 0790  1    Williams.
H28 0790  2    #STUDENT WORKSHOP#
H28 0790  4    THIS workshop, located in Boliou Hall, provides facilities
H28 0800  6    for students to work in ceramics, weaving, enameling,
H28 0810  3    welding, woodworking, textile printing, printmaking,
H28 0820  1    and lapidary. These extra-curricular activities are
H28 0820  8    conducted under supervision of the Director of the
H28 0830  8    Student Workshop. The workshop is open five afternoons
H28 0840  6    and two evenings each week.
H28 0850  1       A student organization, Bottega, is open to any
H28 0850  9    student interested in increasing his understanding
H28 0860  4    and appreciation of the graphic and ceramic arts in
H28 0870  3    their historical, technical, and productive contexts.
H28 0870  9    The group meets once a week in the Boliou Student Workshop.
H28 0880 11    They are assisted and advised by members of the Art
H28 0890  9    Department.
H28 0890 10    #ATHLETICS#
H28 0900  1    THE ATHLETIC PROGRAM at Carleton is considered an integral
H28 0910  1    part of the activities of the College and operates
H28 0910 10    under the same budgetary procedure and controls as
H28 0920  6    the academic work.
H28 0920  9       The physical education program for men recognizes
H28 0930  6    the value of participation in competitive sports in
H28 0940  5    the development of the individual student and aims
H28 0950  2    to give every man an opportunity to enter some form
H28 0950 12    of athletic competition, either intercollegiate or
H28 0960  5    intramural.
H28 0960  6       The same standards for admission, for eligibility
H28 0970  5    to receive scholarships or grants-in-aid, and for scholastic
H28 0980  4    performance at college apply to all students.
H28 0990  1       A faculty committee on athletics, responsible to
H28 0990  8    the faculty as a whole, exercises control over the
H28 1000  8    athletic program of the College. It concerns itself
H28 1010  4    with:
H28 1010  5    _1._
H28 1010  6       The policies which govern the program
H28 1020  3    _2._
H28 1020  4       The preservation of desirable balance between the
H28 1030  2    athletic and academic programs of the College
H28 1030  9    _3._
H28 1030 10       The approval of athletic schedules
H28 1040  4    _4._
H28 1040  5       The maintenance of Midwest Conference eligibility
H28 1050  2    standards
H28 1050  3       Carleton is a member of the Midwest Collegiate Athletic
H28 1060  3    Conference and abides by its eligibility rules. In
H28 1070  2    addition to these rules, Carleton has added the following:
H28 1080  1    _1._
H28 1080  2       A student who while in attendance at Carleton College
H28 1080 11    participates in an athletic contest during the school
H28 1090  8    year, other than that sponsored by the College, shall
H28 1100  6    be permanently ineligible to participate in intercollegiate
H28 1110  3    athletics at Carleton College and will also face permanent
H28 1120  3    suspension from the institution. The school year does
H28 1130  1    not end for any student until he has completed his
H28 1130 11    last examination of the semester.
H28 1140  4    _2._
H28 1140  5       A student to be eligible for the captaincy of any
H28 1150  3    Carleton team must have a scholastic record of at least
H28 1150 13    1.00.
H28 1160  1       THE "~C" CLUB is composed of the men of the College
H28 1170  1    who have won an official letter in Carleton athletics.
H28 1170 10    The purpose of the Club is to promote better athletic
H28 1180  9    teams at Carleton and to increase interest in them
H28 1190  5    among the student body. This is done by encouraging
H28 1200  1    the entire male student body to participate in either
H28 1200 10    the intercollegiate or intramural sports program and
H28 1210  6    by sponsoring the Carleton cheerleaders.
H28 1220  2    _SOCCER CLUB._
H28 1220  4       The Soccer Club was organized by undergraduate men
H28 1230  4    interested in playing soccer and promoting the sport.
H28 1240  1    Membership consists of both beginners and experienced
H28 1240  8    players. Practices are held regularly and the schedule
H28 1250  7    of games is prepared by the student coach and the officers
H28 1260  7    of the club.
H28 1270  1    _WOMEN'S RECREATION ASSOCIATION._
H28 1270  2       This Association, organized in 1920, is affiliated
H28 1280  1    with the Athletic Federation of College Women. The
H28 1280  9    purpose of the organization is to further the interest
H28 1290  7    of women students in recreational activities as a means
H28 1300  5    of promoting physical efficiency, sportsmanship, and
H28 1310  2    "play for play's sake". The Association is governed
H28 1320  1    by a board made up of representatives from each of
H28 1320 11    the four classes. Membership is open to any woman student
H28 1330  8    in the College. Active groups sponsored by the organization
H28 1340  5    include the Saddle Club, Orchesis, Golf Club, Tennis
H28 1350  4    Club, and Dolphins. The Saddle Club, open to students
H28 1360  2    proficient in horsemanship, presents the Annual Spring
H28 1360  9    Riding Exhibition, and during the year it offers speakers,
H28 1370  9    movies, breakfast rides, and trips to broaden their
H28 1380  7    knowledge of the sport. Orchesis, for students interested
H28 1390  4    in the modern dance, contributes to the May Fete and
H28 1400  4    offers earlier in the year a modern dance demonstration.
H28 1410  1    Tennis Club participates in a dual tennis tournament
H28 1410  9    with the University of Minnesota each fall, and also
H28 1420  7    sponsors a two-day state invitational tennis meet at
H28 1430  4    Carleton in May. The Dolphins present a three-night
H28 1450  1    water show the week of the May Fete. Under the auspices
H28 1450 12    of the Women's Recreation Association, interclass competition
H28 1460  7    is organized in badminton, basketball, field hockey,
H28 1470  6    golf, tennis, and swimming. The Association participates
H28 1480  4    in the winter sports carnival and sponsors several
H28 1490  3    Play Days with St& Olaf and other near-by colleges.
H28 1500  1    With the co-operation of the Department of Physical
H28 1500 10    Education for Men, the Women's Recreation Association
H28 1510  7    arranges mixed tournaments in tennis and golf in the
H28 1520  7    fall and spring. Throughout the year there are social
H28 1530  4    events, such as picnics, breakfast hikes, canoe trips,
H28 1540  1    banquets, and indoor parties.
H28 1540  5    #COLLEGE PUBLICATIONS#
H28 1540  7    IN ADDITION to the miscellaneous pamphlets and other
H28 1550  7    printed matter which it issues, the College maintains
H28 1560  6    regular publications, as follows:
H28 1570  1       The Bulletin, in five issues: The Report of the
H28 1580  1    President in August; The Alumni Fund Report in September;
H28 1590  1    the annual Catalog in March; an Alumni Reunion Bulletin
H28 1600  1    in April; and a special Bulletin in June. The College
H28 1610  1    also publishes each year The Report of the Treasurer
H28 1610 10    and a monthly newsletter entitled Carleton College
H28 1620  5    Comments. In co-operation with the Alumni Association
H28 1630  5    of Carleton College, an alumni magazine, The Voice
H28 1640  3    of the Carleton Alumni, is edited and mailed seven
H28 1650  2    times a year by the College's Publications Office and
H28 1650 11    the Alumni Office. At intervals an alumni directory
H28 1660  8    is issued.
H28 1670  1       These publications may be secured as follows: The
H28 1670  9    annual Catalog from the Director of Admissions and
H28 1680  7    other issues from the Publications Office.
H28 1690  2       In January, 1960, the first issue of The Carleton
H28 1700  2    Miscellany, a quarterly literary magazine, was published
H28 1710  1    by the College. The magazine, edited by members of
H28 1710 10    the Carleton Department of English, includes contributions
H28 1720  5    by authors from both within and beyond the Carleton
H28 1730  5    community.
H28 1730  6    #STUDENT PUBLICATIONS#
H28 1730  8    The Carletonian, the college newspaper, is edited by
H28 1740  8    students and published by the College under the supervision
H28 1750  7    of the Publications Board. (See page 100.) It is issued
H28 1760  7    weekly throughout the college year. The Publications
H28 1770  3    Board holds annual competitive examinations for places
H28 1780  2    on the editorial and business staffs. The editor, sports
H28 1780 11    editor, and student business manager are chosen in
H28 1800  8    December, the new staff assuming responsibility for
H28 1810  4    the paper at the beginning of the second semester.
H28 1820  2    The paper affords excellent practice for students interested
H28 1830  1    in the field of journalism.
H28 1830  6       The Algol, the college annual, is published in the
H28 1840  5    fall of each year. The Algol serves as a record of
H28 1850  3    campus organizations and student activities during
H28 1850  9    the year. The Publications Board receives applications
H28 1860  6    for the positions of editor and business manager and
H28 1870  6    makes the appointments in the spring previous to the
H28 1880  4    year of publication. Members of The Algol staff are
H28 1890  2    nominated by the editor and business manager and appointed
H28 1890 11    by the Publications Board.
H28 1900  3       Manuscript, a quarterly literary magazine, is published
H28 1910  3    by the students of the College. It is the purpose of
H28 1920  2    this magazine to serve as an outlet for student creative
H28 1920 12    writing. The editor and business manager of Manuscript
H28 1930  8    are appointed by the Publications Board.
H28 1940  4    #CAMPUS BROADCASTING STATION#
H28 1940  7    A LOW-POWER, "carrier-current" broadcasting station,
H28 1950  5    ~KARL, heard only in the campus dormitories, is owned
H28 1960  8    and operated by the students to provide an outlet for
H28 1970  6    student dramatic, musical, literary, technical, and
H28 1980  2    other talents, and to furnish information, music, and
H28 1980 10    entertainment for campus listeners. Over a hundred
H28 1990  7    students participate in the planning and production
H28 2000  5    of the daily program schedule. ~KARL provides experience
H28 2010  3    for students who wish to pursue careers in radio.
H28 2020  1    #STUDENT GOVERNMENT#
H28 2020  3    THE CARLETON STUDENT ASSOCIATION includes all students
H28 2030  3    in college and is intended "to work for the betterment
H28 2040  1    of Carleton College by providing student government
H28 2040  8    and student participation with the college administration
H28 2050  6    in the formulation and execution of policies which
H28 2060  4    pertain to student life and activities".
H28 2070  1       THE CARLETON SOCIAL CO-OPERATIVE is a standing committee
H28 2080  1    of the Carleton Student Association. Week-end activities
H28 2080  9    for the entire campus are planned by the Co-op Board.
H29 0010  1       In recent months, much attention has been given
H29 0010  9    to the probable extent of the current downtrend in
H29 0020  7    business and economists are somewhat divided as to
H29 0030  4    the outlook for the near future. And yet, despite some
H29 0040  1    disappointment with the performance of this first year
H29 0040  9    of the new decade, 1960 has been a good year in many
H29 0050 10    ways, with many overall measures of business having
H29 0060  4    reached new peaks for the year as a whole. The shift
H29 0070  2    in sentiment from excessive optimism early in the year
H29 0070 11    to the present mood of caution has probably been a
H29 0080  9    good thing, in that it has prevented the accumulation
H29 0090  4    of the burdensome inventories that have characterized
H29 0100  1    many previous swings in the business cycle. This caution
H29 0110  1    has been particularly noticeable in a tendency of retailers
H29 0110 10    and distributors to shift the inventory burden back
H29 0120  7    on the supplier, and the fact stocks at retail are
H29 0130  5    low in many lines has escaped attention because of
H29 0140  2    the presence of higher stocks at the manufacturing
H29 0140 10    level.
H29 0150  1       In the electronics industry, this tendency is well
H29 0150  8    illustrated by inventories of ~TV sets. Factory stocks
H29 0160  6    in recent months have been the highest they have been
H29 0170  5    in three years, while those at retail are below 1959.
H29 0180  2    The total value of our industry's shipments, at factory
H29 0180 11    prices, increased from $9.2 billion in 1959 to approximately
H29 0190  9    $10.1 billion as a result of increases in all of the
H29 0200 10    major segments of our business- home entertainment,
H29 0210  5    military, industrial, and replacement. I believe a
H29 0220  2    further gain is in prospect for 1961.
H29 0220  9    #HOME ENTERTAINMENT SALES UP#
H29 0230  2    Reflecting the largest percentage of high-end sets
H29 0230 10    such as consoles and combinations since 1953, dollar
H29 0240  7    value of home entertainment electronics in 1960 was
H29 0250  5    about $1.9 billion, compared to $1.7 billion in 1959.
H29 0260  3    Sales of ~TV sets at retail ran ahead of the like months
H29 0270  1    of 1959 through July; set production (excluding those
H29 0270  9    destined for the export market) also ran ahead in the
H29 0280  9    early months, but was curtailed after the usual vacation
H29 0290  5    shutdowns in the face of growing evidence that some
H29 0300  3    of the early production plans had been overly optimistic.
H29 0310  1    For the year as a whole, retail sales of ~TV sets probably
H29 0310 13    came to 5.8 million against 5.7 million in 1959; however,
H29 0320 10    production came to only 5.6 million compared to 6.2
H29 0330  8    million.
H29 0330  9       In contrast to the lower turnout of ~TV, total radio
H29 0340  7    production increased from 15.4 million sets to 16.7
H29 0350  5    million (excluding export). Both home and auto radios
H29 0360  2    were in excellent demand, with retail sales of home
H29 0360 11    sets ahead of 1959 in every month of the first eleven;
H29 0370 10    sales and production of home sets were about equal
H29 0380  6    at 10.4 million units. Auto set production came to
H29 0390  3    about 6.3 million compared to 5.6 million in 1959.
H29 0390 12    Separate phonographs also had a good year, reflecting
H29 0400  8    the growing popularity of stereo sound and the same
H29 0410  5    tendency on the part of the consumer to upgrade that
H29 0420  2    characterized the radio-~TV market.
H29 0420  7       The outlook for entertainment electronics in 1961
H29 0430  6    is certainly far from clear at present, but recent
H29 0440  3    surveys have shown a desire on the part of consumers
H29 0450  1    to step up their buying plans for durable goods. I
H29 0450 11    would expect that sales at retail in the first half
H29 0460  8    of 1961 might be below 1960 by some 10-15% but that
H29 0470  5    second-half levels should show a favorable comparison,
H29 0480  1    with a possibility of quite strong demand late in the
H29 0480 11    year if business conditions recover as some recent
H29 0490  6    forecasts suggest they will. I look for ~TV sales and
H29 0500  6    production to be approximately equal at 5.7 million
H29 0510  2    sets for the year, but I look for some decline in radios
H29 0510 14    from the high rate in 1961 to more nearly the 1959
H29 0520 11    level of 15.0-15.5 million sets. I therefore believe
H29 0530  5    it is realistic to assume a modest drop in the total
H29 0540  4    value of home entertainment electronics to about $1.8
H29 0550  1    million, slightly below 1960, but above 1959.
H29 0550  8    #MILITARY ELECTRONICS TO GROW#
H29 0560  3    1960 witnessed another substantial increase in our
H29 0560 10    industry's shipments of military electronics, which
H29 0570  6    totalled about $5.4 billion compared to $4.9 billion
H29 0580  5    in 1959. It is interesting to note that the present
H29 0590  3    level of military electronics procurement is greater
H29 0590 10    than the industry's total sales to all markets in 1950-1953,
H29 0600 11    which were good years for our industry with television
H29 0610  7    enjoying its initial period of rapid consumer acceptance.
H29 0620  5    It has been correctly pointed out by well-informed
H29 0630  1    people in the industry that it is probably unrealistic
H29 0630 10    to expect a continuation of the yearly growth of 15%
H29 0640 10    or better that characterized the decade of the 1950's,
H29 0650  6    and that our military markets may be entering upon
H29 0660  5    a new phase in which procurement of multiple weapons
H29 0670  1    systems will give way to concentration of still undeveloped
H29 0670 10    areas of our defense capability. While this may well
H29 0680  9    be true in general, I believe it is also important
H29 0690  6    to keep in mind that some recent developments suggest
H29 0700  2    that over the next year or so military electronics
H29 0700 11    may be one of the most strongly growing areas in an
H29 0710 10    economy which is not expanding rapidly in other directions.
H29 0720  5       Among the items scheduled for acceleration in the
H29 0730  5    near future are the POLARIS and ~B70 programs, strengthening
H29 0740  3    of the airborne alert system of the Strategic Air Command,
H29 0750  3    and improved battlefield surveillance systems. Research
H29 0760  1    and development expenditures connected with the reconnaissance
H29 0760  8    satellite SAMOS and the future development of ballistic
H29 0770  8    missile defense systems such as NIKE-ZEUS are expected
H29 0780  9    to increase substantially. Research, development test
H29 0790  4    and evaluation funds, devoted to missiles in 1960 were
H29 0800  6    3 to 4 times as large as those devoted to aircraft,
H29 0810  1    and actual missile procurement is expected to exceed
H29 0810  9    aircraft procurement by 1963. Still later, the realm
H29 0820  7    of space technology will show substantial gains; it
H29 0830  4    has been estimated that spending by the National Aeronautics
H29 0840  2    and Space Administration will rise from less than $500
H29 0850  2    million in fiscal 1960 to more than $2 billion by 1967,
H29 0850 13    and that the electronic industry's share of these expenditures
H29 0860  8    will be closer to 50% than the current 20%.
H29 0870  7       The stepped up defense procurement called for in
H29 0880  4    the 1961 Budget has already begun to make itself felt
H29 0890  2    in an upturn in orders for military electronic equipment
H29 0890 11    and the components that go into it, and it has been
H29 0900 11    suggested that an additional $2 billion increase in
H29 0910  5    total defense spending may be requested for fiscal
H29 0920  3    1962. Although the impact of these increases on our
H29 0920 12    industry's shipments will be gradual, on balance I
H29 0930  8    look for another good increase in shipments in the
H29 0940  6    coming year, to at least $6 billion.
H29 0940 13    #INDUSTRIAL ELECTRONIC EQUIPMENT#
H29 0950  3    Paced by the continuing rapid growth of electronic
H29 0960  3    data processing, sales of industrial and commercial
H29 0960 10    electronic equipment totalled $1.8 billion compared
H29 0970  6    to $1.6 billion in 1959. The market for computers and
H29 0980  6    other data-handling continues to expand at the rate
H29 0990  4    of about 30% annually, reaching some $450 million in
H29 1000  1    1960. Informed estimates look for this market to approximately
H29 1000 10    quadruple by the late 1960's, under the stimulus of
H29 1010  9    new applications in the fields of banking and retailing,
H29 1020  7    industrial process control, and information storage
H29 1030  2    and retrieval. In the industrial field, prospects for
H29 1040  2    higher expenditures on electronic testing and measuring
H29 1040  9    equipment are also quite bright. For the near term,
H29 1050  9    however, it must be realized that the industrial and
H29 1060  5    commercial market is somewhat more sensitive to general
H29 1070  3    business conditions than is the military market, and
H29 1070 11    for this reason I would expect that any gain in 1961
H29 1080 10    may be somewhat smaller than those of recent years;
H29 1090  6    sales should slightly exceed 1960, however, and reach
H29 1100  3    $1.9 billion.
H29 1100  5    #REPLACEMENT PARTS#
H29 1100  7    In addition to the three major original equipment segments
H29 1110  7    of the electronics business, the steady growth in the
H29 1120  6    market for replacement parts continues year by year.
H29 1130  4    This is now a $1.0 billion business, up from $0.9 billion
H29 1140  1    in 1959, and should reach $1.1 billion in 1961.
H29 1140 10       The markets for electronic parts in 1960 have reflected
H29 1150  8    the changing patterns of the various end equipment
H29 1160  5    segments of the industry. Demand for parts for home
H29 1170  3    entertainment was strong in the first half, but purchases
H29 1170 12    were cut back to lower levels during the fall as set
H29 1180 11    manufacturers reduced their own operating rates. In
H29 1190  6    the military field, incoming orders turned down early
H29 1200  3    in the year, and remained rather slow until late fall
H29 1210  1    when the upturn in procurement of equipment began to
H29 1210 10    make itself felt in rising orders for components.
H29 1220  6       Sales of transistors in 1960 exceeded $300 million,
H29 1230  4    compared to $222 million in 1959 despite substantial
H29 1240  1    price reductions in virtually all types. Production
H29 1240  8    totalled about 123 million units against 82 million
H29 1250  7    in 1959, and I look for a further gain to 188 million
H29 1260  5    units worth approximately $380 million in 1961. Sales
H29 1270  2    of passive components, such as capacitors and resistors,
H29 1270 10    although not growing as fast as those of semi-conductors
H29 1280 10    were ahead of 1959 this year, and should increase again
H29 1290  8    in 1961.
H29 1290 10       In sum, I look for another good year for the electronics
H29 1300  9    industry in 1961, with total sales increasing about
H29 1310  5    7% to $10.8 billion, despite the uncertainties in the
H29 1320  3    business outlook generally. As I have indicated above,
H29 1330  1    I base this feeling on a belief that current weakness
H29 1330 11    in the market for consumer durable goods may continue
H29 1340  7    through the early months of the year, but will give
H29 1350  6    way to a sufficiently strong recovery later on to bring
H29 1360  3    the full-year figures close to those of 1960; on prospects
H29 1370  1    for continued increases in defense spending; and on
H29 1370  9    continued growth in the applications of electronics
H29 1380  6    to the complex problems of manufacturing and trade
H29 1390  3    in the expanding but competitive economy of the 1960's.
H29 1410  1       The appointment of Gilbert B& Devey as General Manager
H29 1420  1    of VecTrol Engineering, Inc&, of Stamford, Connecticut,
H29 1420  8    a leading manufacturer of thyratron and silicon controlled
H29 1430  7    rectifier electrical controls, has been announced by
H29 1440  6    David B& Peck, Vice President, Special Products.
H29 1450  3       Mr& Devey will be responsible for the commercial
H29 1460  2    expansion of VecTrol's line of electronic and electrical
H29 1470  1    power control components as furnished to end equipment
H29 1470  9    manufacturers, working closely with Walter J& Brown,
H29 1480  7    President and Director of Engineering of the recently
H29 1490  6    acquired Sprague subsidiary. Mr& Brown will at the
H29 1500  5    same time undertake expansion of VecTrol's custom design
H29 1510  2    program for electronic control users with a greatly
H29 1510 10    increased engineering staff.
H29 1520  3       Mr& Devey's new responsibilities are in addition
H29 1530  3    to those of his present post as marketing manager of
H29 1540  1    Sprague's Special Products Group, which manufactures
H29 1540  7    a wide line of digital electronic components, packaged
H29 1550  6    component assemblies, and high temperature magnet wires.
H29 1560  5       Mr& Devey first came to Sprague in 1953 as a Product
H29 1570  6    Specialist in the Field Engineering Department, coming
H29 1580  2    from the Office of Naval Research in Washington, D&
H29 1590  1    C&, where he was an electronic scientist engaged in
H29 1590 10    undersea warfare studies. During World War /2,, he
H29 1600  7    was a lieutenant commander in the United States Navy.
H29 1610  6    Mr& Devey is a graduate of the Massachusetts Institute
H29 1620  2    of Technology, and attended the United States Naval
H29 1630  2    Academy Post-Graduate School specializing in electronic
H29 1640  1    engineering. He was named Product Manager of the Special
H29 1640 10    Products Division of Sprague when it was founded in
H29 1650  9    1958, and was later promoted to his present post. Mr&
H29 1660  6    Devey is a member of the Institute of Radio Engineers,
H29 1670  4    and is chairman of the Electronic Industries Association
H29 1680  1    Committee ~P-9 on Printed and Modular Components.
H29 1690  1       Mr& Brown, well-known, English-born inventor, prior
H29 1690  9    to founding VecTrol was at various times section leader
H29 1700  8    in radio research at Metropolitan Vickers Electrical
H29 1710  4    Co&, Ltd&; chief engineer of the radio set division
H29 1720  6    of Electric and Musical Industries, Ltd&, the largest
H29 1730  3    electronic equipment manufacturer in Great Britain;
H29 1740  1    director of engineering at Philco of Great Britain,
H29 1740  9    Ltd&, and vice president in charge of production and
H29 1750  8    assistant to the president at The Brush Development
H29 1760  5    Co&, Cleveland, Ohio. He has a Bachelor of Science
H29 1770  3    from the University of Manchester, England. Mr& Brown
H29 1780  2    presently has over 130 patents to his credit dating
H29 1780 11    back to 1923. He is a fellow of the American Institute
H29 1790  9    of Electrical Engineers, and a senior member of the
H29 1800  7    Institute of Radio Engineers. He is a member of the
H29 1810  6    Institution of Electrical Engineers, London, a registered
H29 1820  2    professional engineer in Connecticut and Ohio, and
H29 1820  9    a chartered electrical engineer in Great Britain.
H29 1840  1       The promotion of Robert E& Swift to the position
H29 1840 10    of Assistant Manager of the Interference Control Field
H29 1850  7    Service Department was announced early in December
H29 1860  6    by Frederick S& Scarborough, Manager of Interference
H29 1870  4    Control Field Service. The appointment was made in
H29 1880  3    a move to expand the engineering services offered to
H29 1880 12    the designers of electronic systems through assistance
H29 1890  6    in electro-magnetic compatability problems.
H30 0010  1    Between meetings he helps the president keep track
H30 0010  9    of delegated matters. Since these duties fit neatly
H30 0020  6    with those of the proposed presidential aide, one person,
H30 0030  4    with adequate staff assistance, could fill both jobs.
H30 0040  2    ##
H30 0040  3    Since faculty see themselves as self-employed professionals
H30 0050  1    rather than as employees, enthusiasm in a common enterprise
H30 0050 10    is proportionate to the sense of ownership they have
H30 0060  9    in it by virtue of sharing in the decisions that govern
H30 0070  6    its course.
H30 0070  8       The faculty believes that broad autonomy is necessary
H30 0080  7    to preserve its freedom in teaching and scholarship.
H30 0090  3    The president expects faculty members to remember,
H30 0100  1    in exercising their autonomy, that they share no collective
H30 0100 10    responsibility for the university's income nor are
H30 0110  7    they personally accountable for top-level decisions.
H30 0120  5    He may welcome their appropriate participation in the
H30 0130  3    determination of high policy, but he has a right to
H30 0140  1    expect, in return, that they will leave administrative
H30 0140  9    matters to the administration.
H30 0150  2       How well do faculty members govern themselves? There
H30 0160  2    is little evidence that they are giving any systematic
H30 0160 11    thought to a general theory of the optimum scope and
H30 0170 10    nature of their part in government. They sometimes
H30 0180  4    pay more attention to their rights than to their own
H30 0190  4    internal problems of government. They, too, need to
H30 0190 12    learn to delegate. Letting the administration take
H30 0200  7    details off their hands would give them more time to
H30 0210  7    inform themselves about education as a whole, an area
H30 0220  4    that would benefit by more faculty attention.
H30 0220 11       Although faculties insist on governing themselves,
H30 0230  6    they grant little prestige to a member who actively
H30 0240  6    participates in college or university government. There
H30 0250  3    are, nevertheless, several things that the president
H30 0260  1    can do to stimulate participation and to enhance the
H30 0260 10    prestige of those who are willing to exercise their
H30 0270  7    privilege. He can, for example, present significant
H30 0280  3    university-wide issues to the senate. He can encourage
H30 0290  1    quality in faculty committee work in various ways:
H30 0290  9    by seeing to it that the membership of each committee
H30 0300  8    represents the thoughtful as well as the action-oriented
H30 0310  6    faculty; by making certain that no faculty member has
H30 0320  3    too many committee assignments; by assuring good liaison
H30 0330  1    between the committees and the administration; by minimizing
H30 0330  9    the number of committees.
H30 0340  4       Despite the many avenues for the exchange of ideas
H30 0350  3    between faculty and administration, complaints of a
H30 0350 10    lack of communication persist. The cause is as often
H30 0360  9    neglect as hesitance to disclose. A busy president,
H30 0370  6    conversant with a problem and its ramifications and
H30 0380  2    beset by pressures to meet deadlines, tends naturally
H30 0380 10    to assume that others must be as familiar with a problem
H30 0390 11    as he is. The need for interchange and understanding
H30 0400  6    makes vital the full use of all methods of consultation.
H30 0410  4       To increase faculty influence and decrease tension,
H30 0420  2    many presidents have established a standing advisory
H30 0430  1    committee with which they can discuss problems frankly.
H30 0430  9       The president has little influence in day-by-day
H30 0440  8    curricular changes, but if he looks ahead two, three,
H30 0450  6    or five years to anticipate issues and throw out challenging
H30 0460  3    ideas, he can open the way for innovation, and he can
H30 0470  1    also have a great deal to say as to what path it will
H30 0470 14    take. Success will require tact, sensitivity to faculty
H30 0480  7    prerogatives, patience, and persistence.
H30 0500  2    ##
H30 0500  3    The critical task for every president and his academic
H30 0510  2    administrative staff is to assure that the college
H30 0510 10    or university continually rebuilds and regenerates
H30 0520  5    itself so that its performance will match changing
H30 0530  4    social demands **h great professors do not automatically
H30 0540  1    reproduce themselves.
H30 0540  3       Deans can form an important bridge between the president
H30 0550  4    and the faculty. They serve not only as spokesmen for
H30 0560  2    their areas, but they also contribute to top-level
H30 0560 11    decision making. The president who appoints strong
H30 0570  7    men who have an all-college or university point of
H30 0580  5    view and a talent and respect for administration can
H30 0590  2    count on useful assistance.
H30 0590  6       Faculty members depend on their department chairmen
H30 0600  4    to promote their interests with the administration.
H30 0610  1    The administration at the same time, looks to the chairmen
H30 0620  1    for strategic aid in building stronger departments.
H30 0620  8    One way that this can be done, other than by hiring
H30 0630  8    new high-priced professors, is by constantly encouraging
H30 0640  2    the department members to raise their standards of
H30 0650  2    performance.
H30 0650  3       The quality of a president's leadership is measured
H30 0660  2    first by his success in building up the faculty. By
H30 0660 12    supporting the efforts of the many faculty members
H30 0670  8    who are working to attain ever higher standards, the
H30 0680  4    president can encourage faculty leadership. Indirectly
H30 0690  2    he can best help them by insuring that rigorous criteria
H30 0690 12    for appointment and promotion are clearly set forth
H30 0700  8    and adhered to.
H30 0710  1       The academic dean should take a direct, long-term
H30 0710 10    interest in faculty development. An alert dean will
H30 0720  6    confer all through the year on personnel needs, plans
H30 0730  3    for the future, qualifications of those on the job,
H30 0740  1    and bright prospects elsewhere.
H30 0740  5       For the maintenance of a long-term program, the
H30 0750  3    departments, and particularly their chairmen, are strategic.
H30 0760  2    They evaluate and nominate candidates for appointment
H30 0760  9    and promotion. To provide an independent judgment for
H30 0770  8    the president, the academic dean also investigates
H30 0780  5    candidates thoroughly.
H30 0780  7       At some colleges and universities, a faculty committee
H30 0790  7    reviews and reports to the administration on the qualifications
H30 0800  7    of candidates. Some faculty members and many administrators
H30 0810  5    oppose faculty review groups because they either repeat
H30 0820  4    department's actions or act pro forma. They can be
H30 0830  3    effective, however, if their members set high standards
H30 0830 11    for candidates and devote substantial time to the work.
H30 0840  8    At one university, the president cites the faculty
H30 0850  6    review committee as "a valued partner of the administration
H30 0860  4    in guarding and promoting the quality of the faculty".
H30 0870  2       Before the president recommends a candidate to the
H30 0880  1    trustees, the administration collects the views of
H30 0880  8    colleagues in the same field of knowledge on campus
H30 0890  7    and elsewhere. The president or dean reads some of
H30 0900  4    his publications to form the truest possible evaluation
H30 0910  1    of the quality of his mind. No good way to evaluate
H30 0910 12    teaching ability has yet been discovered, although
H30 0920  6    some institutions use inventory sheets for a list of
H30 0930  5    criteria. To avoid passing over quiet, unaggressive
H30 0940  1    teachers as well as to decide whether others merit
H30 0940 10    promotion, review of the right of faculty members to
H30 0950  8    promotion or salary increases should be made periodically
H30 0960  4    whether or not they have been recommended for advancement
H30 0970  2    by their departments.
H30 0970  5       There are certain aspects of personnel development
H30 0980  3    in which a president must involve himself directly.
H30 0990  1    He should personally consider the potential of a faculty
H30 0990 10    member proposed for tenure, to guard against the mistake
H30 1000  9    of making this profoundly serious commitment turn solely
H30 1010  5    upon the man's former achievements. No one can be as
H30 1020  6    effective as the president in inspiring older men to
H30 1030  3    welcome imaginative new teachers whose philosophy or
H30 1030 10    approach to their specialties is quite different. In
H30 1040  7    particular, the president may have to summon all his
H30 1050  7    oratorical powers to persuade department members to
H30 1060  2    accept an outstanding man above the normal salary scale.
H30 1060 11    On those rare occasions when a faculty member on tenure
H30 1070 10    is not meeting the standards of the institution, the
H30 1080  6    president must also bear the ultimate burden of decision
H30 1090  4    and action.
H30 1090  6    ##
H30 1090  7    A true university, like most successful marriages,
H30 1100  3    is a unity of diversities **h Without forcing all components
H30 1110  3    into a single pattern, the preparation of a master
H30 1110 12    plan is an opportunity to consider interrelation of
H30 1120  8    knowledge at its highest level, which a university-
H30 1130  5    in contrast to a multiversity- should stand for.
H30 1140  3       Recently colleges and universities have begun to
H30 1150  2    translate their educational philosophy into institution-wide
H30 1150  9    goals. Each year a few more institutions are deciding
H30 1160  9    such questions as: Shall we require a liberal education
H30 1170  7    built around a humanities core for all undergraduates?
H30 1180  4    Or shall we permit early specialization in scientific
H30 1190  2    and technological subjects? In the first instance,
H30 1190  9    adequate appropriate reading materials and library
H30 1200  6    accommodations must be planned. In the second, more
H30 1210  6    shops, laboratories, and staff will be required.
H30 1220  1       For the president, a master plan looking ahead five
H30 1220 10    years (the maximum reach for sound forecasting), offers
H30 1230  8    several practical advantages. Trustees, faculty, and
H30 1240  5    administration can consider the consequences of decisions
H30 1250  4    before they are made, instead of afterwards. Physical
H30 1260  2    plant and equipment can be efficiently developed. Proposed
H30 1270  1    new programs can be examined for appropriateness to
H30 1270  9    goals and for present and future financial fitness.
H30 1280  5    More than one president has found that a long-range
H30 1290  5    plan helps him to attract major gifts. It inspires
H30 1300  1    confidence in his institution's determination to establish
H30 1300  8    goals and to achieve them.
H30 1310  4       Before deciding where it is going, however, a college
H30 1320  1    or university must know where it is. The first step
H30 1320 11    is a comprehensive self study made by faculty, by outside
H30 1330  8    consultants, or by a combination of the two. It should
H30 1340  6    sternly appraise curricula, faculty, organization,
H30 1350  1    buildings, faculty work loads, and potential for growth
H30 1350  9    in stature and size.
H30 1360  4       Implementation of the master plan will inevitably
H30 1370  1    be uneven. Some departments will attack their new goals
H30 1370 10    enthusiastically; others may drag their feet. Funds
H30 1380  7    may be readily donated for some purposes but not others.
H30 1390  7    A plan must therefore be brought up to date periodically,
H30 1400  5    possibly with the assistance of a permanent planning
H30 1410  2    officer.
H30 1410  3       To provide the continuous flow of information basic
H30 1420  2    to administrative decisions, a number of institutions
H30 1420  9    have established offices of institutional research.
H30 1430  5    Some offices have very broad responsibilities, touching
H30 1440  3    on almost all aspects of a university's instructional
H30 1450  2    program. Their duties include evaluation of the information
H30 1460  1    collected and preparation of recommendations. More
H30 1460  7    often, these offices are restricted to the gathering
H30 1470  7    of empirical data.
H30 1470 10    ##
H30 1470 11    **h the president's opportunity for influencing education
H30 1480  7    reaches its highest point, as he decides which projects
H30 1490  9    he will cut back, which he will advance by increased
H30 1500  6    allowances or new fund-raising efforts.
H30 1510  1       No matter how high the hopes and dreams of educators,
H30 1510 11    budget making adjusts them to the cold realities of
H30 1520  9    dollars and cents. When the budget goes to trustees
H30 1530  6    for approval it is the president's budget, to which
H30 1540  3    his faith and credit are committed; its principal features
H30 1550  1    should be a product of his most considered judgment.
H30 1550 10    He cannot, of course, examine each proposal from scratch.
H30 1560  8    He reviews and shapes the work of others to mold a
H30 1570  8    single joint product that will best promote the aims
H30 1580  3    of the institution.
H30 1580  6       Budgeting must be flexible to allow adaptation to
H30 1590  4    the rapid changes in scientific and technological scholarship.
H30 1600  2    Because scientific instruction and research involve
H30 1600  8    increasingly large sums of money, an institution should
H30 1610  8    choose its fields of prominence. Otherwise it will
H30 1620  6    be headed for bankruptcy, at worst, and at best towards
H30 1630  5    starvation of other less dramatic but socially and
H30 1640  1    culturally indispensable branches of learning. In the
H30 1640  8    national interest even the affluent universities must
H30 1650  6    consider some division of labor among them to replace
H30 1660  5    their present ambitions to keep up with the Joneses
H30 1670  1    in all branches.
H30 1670  4    ##
H30 1670  5    Supporting activities- business management, public
H30 1680  3    relations, fund-raising- offer presidents one of their
H30 1690  2    best chances to buy freedom for attention to education
H30 1690 11    **h Here the reasonable mastery of the elements of
H30 1700  8    administration can do much to free a president for
H30 1710  6    his primary role.
H30 1710  9       In the areas that do not relate directly to the
H30 1730  6    educational program, expert subordinates will serve
H30 1740  2    the college or university better than close presidential
H30 1740 10    attention. The president should find strong subordinates
H30 1750  7    and delegate the widest discretion to them. Higher
H30 1760  6    education cannot compete with the salary scales of
H30 1770  4    the business world, but an educational institution
H30 1770 11    can offer many potent intangible attractions to members
H30 1780  8    of the business community that will offset the differences
H30 1790  7    in income.
H30 1790  9       Just as the entire faculty should know the president's
H30 1800  8    educational philosophy and objectives, so should non-academic
H30 1810  7    officers. They will better understand the relationship
H30 1820  4    of their activities to the academic program and they
H30 1830  3    will be able to explain their actions to faculty in
H30 1830 13    terms of mutual goals.
H30 1840  3       A president is frequently besieged to serve in non-academic
H30 1850  3    civic and governmental capacities, to make speeches
H30 1850 10    to lay groups, and to make numerous ceremonial appearances
H30 1860  8    on and off campus. Since he can neither accept nor
H30 1870  7    reject them all, he must be governed by the time and
H30 1880  5    energy available for his prime professional obligations.
H30 1890  1    Declinations and substitutions are better received
H30 1890  7    when he explains why his obligations to his institution
H30 1900  7    preclude his acceptance.
H30 1910  1       By sharing the load of important speeches with his
H30 1910 10    colleagues, the president can develop a cadre of able
H30 1920  9    spokesmen who will help to create a public perception
H30 1930  5    of the university as an institution, something more
H30 1940  2    than the lengthened shadow of one man.
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