H01 0010 The Office of Business Economics (~OBE) of the U&S& H01 0020 Department of Commerce provides basic measures of the national economy H01 0030 and current analysis of short-run changes in the economic situation H01 0040 and business outlook. It develops and analyzes the national income, H01 0050 balance of international payments, and many other business indicators. H01 0060 Such measures are essential to its job of presenting business and H01 0070 Government with the facts required to meet the objective of expanding H01 0080 business and improving the operation of the economy. _CONTACT_ H01 0090 For further information contact Director, Office of Business Economics, H01 0100 U&S& Department of Commerce, Washington 25, D&C&. H01 0110 _PRINTED MATERIAL_ Economic information is made available to businessmen H01 0120 and economists promptly through the monthly and its weekly supplement. This periodical, including H01 0140 weekly statistical supplements, is available for $4 per year from Commerce H01 0150 Field Offices or Superintendent of Documents, U&S& H01 0160 Government Printing Office, Washington 25, D&C&. #TECHNICAL H01 0170 ASSISTANCE TO SMALL BUSINESS COMMUNITY# The Small Business Administration H01 0180 (~SBA) provides guidance and advice on sources of technical H01 0190 information relating to small business management and research H01 0200 and development of products. _SMALL BUSINESS MANAGEMENT_ Practical H01 0210 management problems and their suggested solutions are dealt with in H01 0220 a series of ~SBA publications. These publications, written especially H01 0230 for the managers or owners of small businesses, indirectly aid in H01 0240 community development programs. They are written by specialists in H01 0250 numerous types of business enterprises, cover a wide range of subjects, H01 0260 and are directed to the needs and interests of the small firm. H01 0270 ~SBA offers Administrative Management Courses, which are designed H01 0280 to improve the management efficiency and "know-how" of small H01 0290 business concerns within a community. ~SBA cosponsors these courses H01 0300 with educational institutions and community groups. Through H01 0310 the ~SBA's Management Counseling Program, practical, personalized H01 0320 advice on sound management principles is available upon request H01 0330 to both prospective and established businessmen in a community. One-day H01 0340 conferences covering some specific phase of business management, H01 0350 also part of the continuing activities of the Small Business Administration, H01 0360 aid community economic development programs. These short, "streamlined" H01 0370 meetings usually are sponsored by local banks, Chambers H01 0380 of Commerce, trade associations, or other civic organizations. _PRODUCT H01 0390 RESEARCH AND DEVELOPMENT_ Production specialists in ~SBA H01 0400 regional offices are available to help individual small business concerns H01 0410 with technical production problems. Guidance and advice are available H01 0420 on new product research and development; new product potential; H01 0430 processing methods; product and market developments; new industrial H01 0440 uses for raw, semi-processed and waste, materials; and industrial H01 0445 uses H01 0450 for agricultural products. ~SBA serves also as a clearing H01 0460 house for information on products and processes particularly adaptable H01 0470 for exploitation by small firms. This may be helpful in improving the H01 0480 competitive position of established firms through diversification and H01 0490 expansion or through more economical utilization of plant capacity. H01 0500 _PRODUCTION ASSISTANCE_ Production specialists are available in H01 0510 ~SBA regional offices to help individual small business concerns H01 0520 with technical production problems. These problems frequently arise H01 0530 where a firm is making items for the Government not directly along the H01 0540 lines of its normal civilian business or where the Government specifications H01 0550 require operations that the firm did not understand when it H01 0560 undertook the contract. Production assistance often takes the form of H01 0570 locating tools or materials which are urgently needed. Advice is given H01 0580 also on problems of plant location and plant space. _PROPERTY SALES H01 0590 ASSISTANCE_ The property sales assistance program is designed to H01 0600 assist small business concerns that may wish to buy property offered H01 0610 for sale by the Federal Government. Under this program, property sales H01 0620 specialists in the Small Business Administration regional offices H01 0630 help small business concerns to locate Federal property for sale and H01 0640 insure that small firms have the opportunity to bid competitively for H01 0650 surplus personal and real property and certain natural resources, including H01 0660 timber from the national forests. ~SBA works closely H01 0670 with the principal property disposal installations of the Federal H01 0680 Government in reviewing proposed sales programs and identifying those H01 0690 types of property that small business concerns are most likely to be H01 0700 interested in purchasing. Proposed property sales of general interest H01 0710 to small business concerns are publicized through ~SBA regional H01 0720 news releases, and by "flyers" directed to the small business concerns. H01 0730 Each ~SBA regional office also maintains a "want" list H01 0740 of surplus property, principally machinery and equipment, desired by H01 0750 small business concerns in its area. When suitable equipment is located H01 0760 by the ~SBA representative, the small business concern is contacted H01 0770 and advised on when, where, and how to bid on such property. H01 0780 _FACILITIES INVENTORY_ Section 8 (~b) (2) of the Small Business H01 0790 Act, as amended, authorizes the ~SBA to make a complete inventory H01 0800 of the productive facilities of small business concerns. The Administration H01 0810 maintains a productive facilities inventory of small business H01 0820 industrial concerns that have voluntarily registered. It is kept H01 0830 in each Regional office for the small firms within the region. Purpose H01 0840 of this inventory is to include all eligible productive facilities H01 0850 in ~SBA's facilities register so that the small business concerns H01 0860 may have an opportunity to avail themselves of the services authorized H01 0870 by the Congress in establishing the Small Business Administration. H01 0880 These services include procurement and technical assistance and H01 0890 notice of surplus sales and invitations to bid on Government contracts H01 0900 for products and services within the registrants' field of operations. H01 0910 ~SBA can make complete facilities inventories of all small business H01 0920 concerns in labor surplus areas within budgetary and staff limitations. H01 0930 _CONTACT_ For further information, contact Small Business H01 0940 Administration Regional Offices in Atlanta, Ga&; Boston, H01 0950 Mass&; Chicago, Ill&; Cleveland, Ohio; Dallas, Tex&; H01 0960 Denver, Colo&; Detroit, Mich&; Kansas City, Mo&; H01 0970 Los Angeles, Calif&; Minneapolis, Minn&; New York, H01 0980 N&Y&; Philadelphia, Pa&; Richmond, Va&; San Francisco, H01 0990 Calif&; and Seattle, Wash&. Branch Offices are located H01 1000 in other large cities. _PRINTED MATERIAL_ , and various other useful publications H01 1030 on currently important management, technical production, and H01 1040 marketing topics are available, on request, from Small Business Administration, H01 1050 Washington 25, D&C&. , 30 cents; , 45 cents; , 60 cents, are available from H01 1090 the Superintendent of Documents, U&S& Government Printing H01 1100 Office, Washington 25, D&C&. #LOANS# _TO SMALL BUSINESS_ H01 1110 ~SBA makes loans to individual small business firms, providing H01 1120 them with financing when it is not otherwise available through private H01 1130 lending sources on reasonable terms. Many such loans have been made H01 1140 to establish small concerns or to aid in their growth, thereby contributing H01 1150 substantially to community development programs. _LOAN POLICIES._ H01 1160 ~SBA loans, which may be made to small manufacturers, small H01 1170 business pools, wholesalers, retailers, service establishments and H01 1180 other small businesses (when financing is not otherwise available to them H01 1190 on reasonable terms), are to finance business construction, conversion, H01 1200 or expansion; the purchase of equipment, facilities, machinery, H01 1210 supplies, or materials; or to supply working capital. Evidence that H01 1220 other sources of financing are unavailable must be provided. _TYPES H01 1230 OF LOANS._ ~SBA business loans are of two types: "participation" H01 1240 and "direct". Participation loans are those made jointly H01 1250 by the ~SBA and banks or other private lending institutions. Direct H01 1260 loans are those made by ~SBA alone. To qualify for either H01 1270 type of loan, an applicant must be a small business or approved small H01 1280 business "pool" and must meet certain credit requirements. A small H01 1290 business is defined as one which is independently owned and operated H01 1300 and which is not dominant in its field. In addition, the ~SBA H01 1310 uses such criteria as number of employees and dollar volume of the business. H01 1320 _CREDIT REQUIREMENTS._ The credit requirements stipulate that H01 1330 the applicant must have the ability to operate the business successfully H01 1340 and have enough capital in the business so that, with loan assistance H01 1350 from the ~SBA, it will be able to operate on a sound financial H01 1360 basis. A proposed loan must be for sound purposes or sufficiently H01 1370 secured so as to assure a reasonable chance of repayment. The record H01 1380 of past earnings and prospects for the future must indicate it has the H01 1390 ability to repay the loan out of current and anticipated income. _LOAN H01 1400 AMOUNT._ The amount which may be borrowed from the ~SBA H01 1410 depends on how much is required to carry out the intended purpose of the H01 1420 loan. The maximum loan which ~SBA may make to any one borrower H01 1430 is $350,000. Business loans generally are repayable in regular installments- H01 1440 usually monthly, including interest at the rate of 5-1/2 percent H01 1450 per annum on the unpaid balance- and have a maximum maturity H01 1460 of 10 years; the term of loans for working capital is 6 years. _CONTACT_ H01 1470 For further information, contact ~SBA Regional Offices H01 1480 in Atlanta, Ga&; Boston, Mass&; Chicago, Ill&; Cleveland, H01 1490 Ohio; Dallas, Tex&; Denver, Colo&; Detroit, Mich&; H01 1500 Kansas City, Mo&; Los Angeles, Calif&; Minneapolis, H01 1510 Minn&; New York, N&Y&; Philadelphia, Pa&; H01 1520 Richmond, Va&; San Francisco, Calif&; and Seattle, Wash&. H01 1530 Branch Offices are located in other large cities. _PRINTED MATERIAL_ H01 1540 and are available, on request, from Small Business Administration, H01 1570 Washington 25, D&C&, and its regional offices. _TO COOPERATIVES_ H01 1580 The Farm Credit Administration, an independent agency H01 1590 located within the Department of Agriculture, supervises and coordinates H01 1600 a cooperative credit system for agriculture. The system is composed H01 1610 of three credit services, Federal Land Banks and National Farm H01 1620 Loan Associations, Federal Intermediate (short-term) Credit Banks, H01 1630 and Banks for Cooperatives. This system provides long- and short-term H01 1640 credit to farmers and their cooperative marketing, purchasing, H01 1650 and business service organizations. As a source of investment H01 1660 capital, the system is beneficial to local communities and encourages H01 1670 the development of industries in rural areas. The credit provdied H01 1680 by the first two services in the system outlined above is primarily for H01 1690 general agricultural purposes. The third credit service, Banks for H01 1700 Cooperatives, exists under authority of the Farm Credit Act of 1933. H01 1710 The Banks for Cooperatives were established to provide a permanent H01 1720 source of credit on a sound basis for farmers' cooperatives. _TYPES H01 1730 OF LOANS._ Three distinct classes of loans are made available H01 1740 to farmers' cooperatives by the Banks for Cooperatives: Commodity H01 1750 loans, operating capital loans, and facility loans. _ELIGIBILITY._ H01 1760 To be eligible to borrow from a Bank for Cooperatives, a cooperative H01 1770 must be an association in which farmers act together in processing H01 1780 and marketing farm products, purchasing farm supplies, or furnishing H01 1790 farm business services, and must meet the requirements set forth H01 1800 in the Farm Credit Act of 1933, as amended. _INTEREST RATES._ H01 1810 Interest rates are determined by the board of directors of the bank with H01 1820 the approval of the Farm Credit Administration. _CONTACT_ For H01 1830 further information, contact the Bank for Cooperatives serving the H01 1840 region, or the Farm Credit Administration, Research and Information H01 1850 Division, Washington 25, D&C&. _PRINTED MATERIAL_ Available, H01 1860 on request, from U&S& Department of Agriculture, Washington H01 1870 25, D&C&, are: (Circular No& 44), and (Circular No& 36-~A). #MINERALS H01 1900 EXPLORATION# To encourage exploration for domestic sources of minerals, H01 1910 the Office of Minerals Exploration (~OME) of the U&S& H01 1920 Department of the Interior offers financial assistance to firms H01 1930 and individuals who desire to explore their properties or claims for H01 1940 1 or more of the 32 mineral commodities listed in the ~OME regulations. H01 1950 _REQUIREMENTS_ This help is offered to applicants who ordinarily H01 1960 would not undertake the exploration under present conditions or H01 1970 circumstances at their sole expense and who are unable to obtain funds H01 1980 from commercial sources on reasonable terms. Each applicant is required H01 1990 to own or have sufficient interest in the property to be explored. H01 2000 The Government will contract with an eligible applicant to pay up H01 2010 to one-half of the cost of approved exploration work as it progresses. H01 2020 The applicant pays the rest of the cost, but his own time spent on the H01 2030 work and charges for the use of equipment which he owns may be applied H01 2040 toward his share of the cost. _REPAYMENT_ Funds contributed by H01 2050 the Government are repaid by a royalty on production from the property. H01 2060 If nothing is produced, there is no obligation to repay. A 5-percent H01 2070 royalty is paid on any production during the period the contract H01 2080 is in effect; if the Government certifies that production may be H01 2090 possible from the property, the royalty obligation continues for the H01 2100 10-year period usually specified in the contract or until the Government's H01 2110 contribution is repaid with interest. The royalty applies to H01 2120 both principal and interest, but it never exceeds 5 percent. _CONTACT_ H01 2130 Information, application forms, and assistance in filing may be H01 2140 obtained from the Office of Minerals Exploration, U&S& Department H01 2150 of the Interior, Washington 25, D&C&, or from the appropriate H01 2160 regional office listed below: H02 0010 In most of the less developed countries, however, such programing H02 0020 is at best inadequate and at worst nonexistent. Only a very few of H02 0030 the more advanced ones, such as India and Pakistan, have developed H02 0040 systematic techniques of programing. Others have so-called development H02 0050 plans, but some of these are little more than lists of projects H02 0060 collected from various ministries while others are statements of goals H02 0070 without analysis of the actions required to attain them. Only rarely H02 0080 is attention given to accurate progress reports and evaluation. _WE H02 0090 CAN HELP IN THE PLANNING PROCESS_ Neither growth nor a development H02 0100 program can be imposed on a country; it must express the nation's H02 0110 own will and goal. Nevertheless, we can administer an aid program H02 0120 in such a manner as to promote the development of responsible programing. H02 0130 , we can encourage responsibility by establishing H02 0140 as conditions for assistance on a substantial and sustained scale the H02 0150 definition of objectives and the assessment of costs. , H02 0160 we can make assistance for particular projects conditional on H02 0170 the consistency of such projects with the program. , H02 0180 we can offer technical help in the formulation of programs for development H02 0190 which are adapted to the country's objectives and resources. This H02 0200 includes assistance in- **h assembling the basic economic, financial, H02 0210 technological, and educational information on which programing depends; H02 0220 **h surveying the needs and requirements over time of broad H02 0230 sectors of the economy, such as transport, agriculture, communication, H02 0240 industry, and power; **h designing the financial mechanisms of the H02 0250 economy in ways that will promote growth without inflation; and **h H02 0260 administrative practices which will make possible the more effective H02 0270 review and implementation of programs once established. _WE MUST USE H02 0280 COMMON SENSE IN APPLYING CONDITIONS_ The application of conditions H02 0285 in the allocation H02 0290 of aid funds cannot, of course, be mechanical. It must H02 0300 be recognized that countries at different stages of development have H02 0310 very different capabilities of meeting such conditions. To insist H02 0320 on a level of performance in programing and budgeting completely beyond H02 0330 the capabilities of the recipient country would result in the frustration H02 0340 of the basic objective of our development assistance to encourage H02 0350 more rapid growth. In the more primitive areas, where the capacity H02 0360 to absorb and utilize external assistance is limited, some activities H02 0370 may be of such obvious priority that we may decide to support them H02 0380 before a well worked out program is available. Thus, we might provide H02 0390 limited assistance in such fields as education, essential transport, H02 0400 communications, and agricultural improvement despite the absence of H02 0410 acceptable country programs. In such a case, however, we would encourage H02 0420 the recipient country to get on with its programing task, supply H02 0430 it with substantial technical assistance in performing that task, and H02 0440 make it plain that an expansion or even a continuation of our assistance H02 0450 to the country's development was conditional upon programing progress H02 0460 being made. At the other end of the spectrum, where the H02 0470 more advanced countries can be relied upon to make well thought through H02 0480 decisions as to project priorities within a consistent program, we should H02 0490 be prepared to depart substantially from detailed project approval H02 0500 as the basis for granting assistance and to move toward long-term support, H02 0510 in cooperation with other developed countries, of the essential H02 0520 foreign exchange requirements of the country's development program. H02 0530 #D. ENCOURAGING SELF-HELP# _1. THE REASONS FOR STRESSING SELF-HELP_ H02 0540 A systematic approach to development budgeting and programing H02 0550 is one important kind of self-help. There are many others. It is vitally H02 0560 important that the new U&S& aid program should encourage all H02 0570 of them, since the main thrust for development must come from the less H02 0580 developed countries themselves. External aid can only be marginal, H02 0590 although the margin, as in the case of the Marshall plan, can be decisive. H02 0600 External aid can be effective only if it is a complement to self-help. H02 0610 U&S& aid, therefore, should increasingly be designed to H02 0620 provide incentives for countries to take the steps that only they themselves H02 0630 can take. _AID ADVICE IS NOT INTERFERENCE_ In establishing H02 0640 conditions of self-help, it is important that we not expect countries H02 0650 to remake themselves in our image. Open societies can take many forms, H02 0660 and within very broad limits recipients must be free to set their H02 0670 own goals and to devise their own institutions to achieve those goals. H02 0680 On the other hand, it is no interference with sovereignty to point H02 0690 out defects where they exist, such as that a plan calls for factories H02 0700 without power to run them, or for institutions without trained personnel H02 0710 to staff them. Once we have made clear that we are genuinely concerned H02 0720 with a country's development potential, we can be blunt in suggesting H02 0730 the technical conditions that must be met for development to occur. H02 0740 _2. THE RANGE OF SELF-HELP_ The major areas of self-help H02 0750 are the following: _(A) THE EFFECTIVE MOBILIZING OF RESOURCES._ H02 0760 This includes not only development programing, but also establishing H02 0770 tax policies designed to raise equitably resources for investment; H02 0780 fiscal and monetary policies designed to prevent serious inflation; H02 0790 and regulatory policies aimed to attract the financial and managerial H02 0800 resources of foreign investment and to prevent excessive luxury H02 0810 consumption by a few. _(B) THE REDUCTION OF DEPENDENCE ON EXTERNAL H02 0820 SOURCES._ This includes foreseeing balance-of-payments crises, H02 0830 with adequate attention to reducing dependence on imports and adopting H02 0840 realistic exchange rates to encourage infant industries and spur exports. H02 0850 It also includes providing for the training of nationals to operate H02 0860 projects after they are completed. _(C) TAPPING THE ENERGIES OF H02 0870 THE ENTIRE POPULATION._ For both economic and political reasons H02 0880 all segments of the population must be able to share in the growth H02 0890 of a country. Otherwise, development will not lead to longrun stability. H02 0900 _(D) HONESTY IN GOVERNMENT._ In many societies, what we H02 0910 regard as corruption, favoritism, and personal influence are so accepted H02 0920 as consistent with the mores of officialdom and so integral a part H02 0930 of H02 0940 routine administrative practice that any attempt to force their elimination H02 0950 will be regarded by the local leadership as not only unwarranted H02 0960 but unfriendly. Yet an economy cannot get the most out of its resources H02 0970 if dishonesty, corruption, and favoritism are widespread. Moreover, H02 0980 tolerance by us of such practices results in serious waste and diversion H02 0990 of aid resources and in the long run generates anti-American H02 1000 sentiment of a kind peculiarly damaging to our political interest. Some H02 1010 of the most dramatic successes of communism in winning local support H02 1020 can be traced to the identification- correct or not- of Communist H02 1030 regimes with personal honesty and pro-Western regimes with corruption. H02 1040 A requirement of reasonably honest administration may be politically H02 1050 uncomfortable in the short run, but it is politically essential H02 1060 in the long run. _3. U&S& POSITION ON SELF-HELP_ The United H02 1070 States can use its aid as an incentive to self-help by responding with H02 1080 aid on a sustained basis, tailored to priority needs, to those countries H02 1090 making serious efforts in self-help. In many instances it H02 1100 can withhold or limit its aid to countries not yet willing to make such H02 1110 efforts. There are other countries where, with skillful diplomacy, H02 1120 we may be able by our aid to give encouragement to those groups H02 1130 in government which would like to press forward with economic and social H02 1140 reform measures to promote growth. Governments are rarely monolithic. H02 1150 But there will be still other countries where, despite H02 1160 the inadequacy of the level of self-help, we shall deem it wise, for political H02 1170 or military reasons, to give substantial economic assistance. H02 1180 Even in these cases we should promote self-help by making it clear that H02 1190 our supporting assistance is subject to reduction and ultimately to H02 1200 termination. #E. ENCOURAGING A LONG-TERM APPROACH# _1. DEVELOPMENT H02 1210 REQUIRES A LONG-TERM APPROACH_ The most fundamental concept of H02 1220 the new approach to economic aid is the focusing of our attention, our H02 1230 resources, and our energies on the effort to promote the economic and H02 1240 social development of the less developed countries. This is not a short-run H02 1260 goal. To have any success in this effort, we must ourselves view H02 1270 it as an enterprise stretching over a considerable number of years, H02 1280 and we must encourage the recipients of our aid to view it in the same H02 1290 fashion. _MOST OF OUR AID WILL GO TO THOSE NEARING SELF-SUFFICIENCY_ H02 1300 How long it will take to show substantial success in this effort H02 1310 will vary greatly from country to country. In several significant cases, H02 1320 such as India, a decade of concentrated effort can launch these H02 1330 countries into a stage in which they can carry forward their own economic H02 1340 and social progress with little or no government-to-government assistance. H02 1350 These cases in which light is already visible at the other H02 1360 end of the tunnel are ones which over the next few years will absorb H02 1370 the bulk of our capital assistance. _GRADUALLY OTHERS WILL MOVE UP TO H02 1380 THE SAME LEVEL_ The number of countries thus favorably situated is H02 1390 small, but their peoples constitute over half of the population of the H02 1400 underdeveloped world. Meantime, over the decade of the sixties, we H02 1410 can hope that many other countries will ready themselves for the big H02 1420 push into self-sustaining growth. In still others which are barely on H02 1430 the threshold of the transition into modernity, the decade can bring H02 1440 significant progress in launching the slow process of developing their H02 1450 human resources and their basic services to the point where an expanded H02 1460 range of developmental activities is possible. _AID IS A LONG-TERM H02 1470 PROCESS_ The whole program must be conceived of as an effort, stretching H02 1480 over a considerable number of years, to alter the basic social H02 1490 and economic conditions in the less developed world. It must be recognized H02 1500 as a slow-acting tool designed to prevent political and military H02 1510 crises such as those recently confronted in Laos and Cuba. It is H02 1520 not a tool for dealing with these crises after they have erupted. _2. H02 1530 THE SPECIFIC REASONS FOR A LONG-TERM APPROACH_ _(A) THE NEED TO H02 1540 BUDGET A PERIOD OF YEARS._ Many of the individual projects for H02 1550 which development assistance is required call for expenditures over lengthy H02 1560 periods. Dams, river development schemes, transportation networks, H02 1570 educational systems require years to construct. Moreover, on complex H02 1580 projects, design work must be completed and orders for machinery H02 1590 and equipment placed months or even years before construction can commence. H02 1600 Thus, as a development program is being launched, commitments and H02 1610 obligations must be entered into in a given year which may exceed by H02 1620 twofold or threefold the expenditures to be made in that year. The H02 1630 capital expansion programs of business firms involve multi-year budgeting H02 1640 and the same is true of country development programs. _(B) THE NEED H02 1650 TO PLAN INVESTMENT PROGRAMS._ More importantly, several of H02 1660 the more advanced of the less developed countries have found through H02 1670 experience that they must plan their own complex investment programs for H02 1680 at least 5 years forward and tentatively for considerably more than H02 1690 that if they are to be sure that the various interdependent activities H02 1700 involved are all to take place in the proper sequence. Without such H02 1710 forward planning, investment funds are wasted because manufacturing facilities H02 1720 are completed before there is power to operate them or before H02 1730 there is transport to service them; or a skilled labor force is trained H02 1740 before there are plants available in which they can be employed. H02 1750 _(C) THE NEED TO ALLOCATE COUNTRY RESOURCES._ Most important H02 1760 of all, the less developed countries must be persuaded to take the necessary H02 1770 steps to allocate and commit their own resources. They must H02 1780 be induced to establish the necessary tax, fiscal, monetary, and regulatory H02 1790 policies. They must be persuaded to adopt the other necessary self-help H02 1800 measures which are described in the preceding section. The taking H02 1810 of these steps involves tough internal policy decisions. Moreover, H02 1820 once these steps are taken, they may require years to make themselves H02 1830 felt. They must, therefore, be related to long-range development H02 1840 plans. _3. PROVIDING AN INCENTIVE_ If the less developed countries H02 1850 are to be persuaded to adopt a long-term approach, the United States, H02 1860 as the principal supplier of external aid, must be prepared to give H02 1870 long-term commitments. In this, as in so many aspects of our development H02 1880 assistance activities, the incentive effects of the posture we take H02 1890 are the most important ones. The extent to which we can persuade H02 1900 the less developed countries to appraise their own resources, to set targets H02 1910 toward which they should be working, to establish in the light H02 1920 of this forward H02 1930 perspective the most urgent priorities for their immediate H02 1940 attention, and to do the other things which they must do to help themselves, H02 1950 all on a realistic long-term basis, will depend importantly H02 1960 on the incentives we place before them. If they feel that we are taking H02 1970 a long-term view of their problems and are prepared to enter into H02 1980 reasonably long-term association with them in their development activities, H02 1990 they will be much more likely to undertake the difficult tasks required. H02 2000 Perhaps the most important incentive for them will be clear H02 2010 evidence that where other countries have done this kind of home work we H02 2020 have responded with long-term commitments. H03 0010 You have heard him tell these young people that during his almost H03 0020 50 years of service in the Congress he has seen the Kaisers and H03 0030 the Hitlers and the Mussolinis, the Tojos and Stalins and Khrushchevs, H03 0040 come and go and that we are passing on to them the freest Nation H03 0050 that mankind has ever known. Then I have seen the pride of country H03 0060 well in the eyes of these young people. So, I say, Mr& Speaker, H03 0070 God bless you and keep you for many years not only for this body H03 0080 but for the United States of America and the free world. You remember H03 0090 the words of President Kennedy a week or so ago, when someone H03 0100 asked him when he was in Canada, and Dean Rusk was in Europe, and H03 0110 Vice President JOHNSON was in Asia, "Who is running the H03 0120 store"? and he said "The same fellow who has been running it, SAM H03 0130 RAYBURN". #GENERAL LEAVE TO EXTEND# _MR& MCCORMACK._ H03 0140 Mr& Speaker, I ask unanimous consent that all Members who desire H03 0150 to do so may extend their remarks at this point in the RECORD; H03 0160 and also that they may have 5 legislative days in which to extend H03 0170 their remarks. _THE SPEAKER PRO TEMPORE._ Is there objection H03 0180 to the request of the gentleman from Massachusetts? There was H03 0190 no objection. #REMARKS OF HON& JOSEPH P& ADDABBO OF NEW YORK# H03 0200 _MR& ADDABBO._ It is notably significant that so many Members H03 0210 from both sides of the aisle express their respect and admiration for H03 0220 our beloved Speaker, the Honorable SAM RAYBURN. I purposely H03 0230 refrained from adding the usual distinction of saying that he was from H03 0240 the State of Texas. I did so because I agree with so many here H03 0250 today, that he is the beloved Speaker of all the people of the United H03 0260 States. For the dignity, the influence, and the power of the legislative H03 0270 branch of our Government- it is a privilege for us to do honor H03 0280 to this great man who represents not alone his own district but all H03 0290 the people of our country. To honor him is to honor ourselves. H03 0300 In this my first year as a Member of this body I have experienced H03 0310 many memorable moments. Many of these experiences are so important H03 0320 that they will be cherished forever by me. And, like many of you here H03 0330 present, I hold as the highlight of all, the occasion of my first meeting H03 0340 with the honorable Speaker of the House. At that time, he afforded H03 0350 me the courtesy of his busy workday for such length as I may need, H03 0360 to speak about my background, my hopes, my views on various national H03 0370 and local topics, and any problems that I may have been vexed with H03 0380 at the time. He was fatherly in his handling of all subjects with me H03 0390 and tremendously wise in his counsel. In conclusion, he wished me well- H03 0400 and as kindly and humbly as this humane gentleman could express H03 0410 himself, he asked to be remembered to my wife and children. In H03 0420 my short period here I believe that at no time has he been otherwise H03 0430 than the most popular man on both sides of the aisle. He is most effective H03 0440 in the ordinary business of the House, and in the legislative H03 0450 accomplishments of this session, he easily rose to great occasion- even H03 0460 at the height of unpleasantness and exciting legislative struggle- H03 0470 and as the Nation witnessed these contests, he rose, even as admitted H03 0480 by those who differed with him, to the proportions of a hero and a H03 0490 noble partisan. I am highly privileged today to commemorate the H03 0500 brilliant career of this parliamentary giant. He will ever be my example H03 0510 as a true statesman; one who is thoroughly human, who affects H03 0520 no dignity, and who is endowed with real ability, genuine worth, and H03 0530 sterling honesty- all dedicated to secure the best interests of the H03 0540 country he has loved and served so long. May the Divine Speaker in H03 0550 Heaven bless this country with SAM RAYBURN'S continued service H03 0560 here for years to come. #REMARKS OF HON& WAYNE L& HAYS OF OHIO# H03 0570 _MR& HAYS._ It is a matter of deep personal satisfaction for H03 0580 me to add my voice to the great and distinguished chorus of my colleagues H03 0590 in this paean of praise, respect, and affection for Speaker SAM H03 0600 RAYBURN. In this hour of crisis, the wisdom, the dedication, the H03 0610 stabilizing force that he represents in current American government H03 0620 is an almost indispensable source of strength. He has become in this H03 0630 half century the grand old man of American history. It seems to me H03 0640 that the prayers of the whole free world must rise like some vast petition H03 0650 to Providence that SAM RAYBURN'S vigor and his life remain H03 0660 undiminished through the coming decades. Here briefly in this H03 0670 humble tribute I have sought for some simple and succinct summation H03 0680 that would define the immense service of this patriot to his country. H03 0690 But the task is beyond me because I hold it impossible to compress H03 0700 in a sentence or two the complicated and prodigious contributions SAM H03 0710 RAYBURN has made as an individual, as a legislator, as a statesman H03 0720 and as a leader and conciliator, to the majestic progress of this H03 0730 Nation. It happens that I am a legislator from Ohio and that I feel H03 0740 deeply about the needs, the aspirations, the interests of my district H03 0750 and my State. What SAM RAYBURN'S life proves to us all is H03 0760 the magnificent lesson in political science that one can devotedly and H03 0770 with absolute dedication represent the seemingly provincial interests H03 0780 of one's own community, one's own district, one's own State, H03 0790 and by that help himself represent even better the sweep and scope of H03 0800 the problems of this the greatest nation of all time. For SAM H03 0810 RAYBURN never forgot Bonham, his home community, and he never H03 0820 forgot Texas. In the same way I like to think we owe our loyalty as H03 0830 legislators to our community, our district, our State. And, if we H03 0840 follow the RAYBURN pattern, as consciously or by an instinctual H03 0850 political sense I like to think I have followed it, then the very nature H03 0860 of our loyalty to our own immediate areas must necessarily be reflected H03 0870 in the devotion of our services to our country. For what SAM H03 0880 RAYBURN'S life in this House teaches us is that loyalty and character H03 0890 are not divisive and there is no such thing as being for your H03 0900 country and neglecting your district. There is no such thing as being H03 0910 diligent about national affairs but indifferent about home needs. The H03 0920 two are as one. This may not be the greatest but it certainly comes H03 0930 close to being the greatest lesson SAM RAYBURN'S career, up to H03 0940 this hour, teaches all of us who would aspire to distinction in political H03 0950 life under our processes of government. More than that, H03 0960 SAM RAYBURN is the very living symbol of an iron-clad integrity H03 0970 so powerful in his nature and so constantly demonstrated that he can count H03 0980 some of his best friends in the opposition. Through the most rancorous H03 0990 battles of political controversy and the most bitterly fought national H03 1000 and presidential campaigns his character shines as an example H03 1010 of dignity and honesty, forthrightness and nobility. SAM RAYBURN H03 1020 has never had to look back at any of his most devastating fights and H03 1030 ever feel ashamed of his conduct as a combatant under fire or his political H03 1040 manners in the heat of conflicting ambitions. This means much to H03 1050 the American tradition. It is an answer in its way, individual and H03 1060 highly dramatic, to the charge that the democratic process is necessarily H03 1070 vicious in its campaign characteristics. And the name RAYBURN H03 1080 is one of the most dominant in the history of American politics for H03 1090 the last half century. It is, I insist, hard to define the H03 1100 RAYBURN contribution to our political civilization because it is H03 1110 so massive and so widespread and so complicated, and because it goes H03 1120 so deep. But this we know: Here is a great life that in every area H03 1130 of American politics gives the American people occasion for pride H03 1140 and that has invested the democratic process with the most decent qualities H03 1150 of honor, decency, and self-respect. I pray to God that he may H03 1160 be spared to us for many years to come for this is an influence the United H03 1170 States and the whole world can ill afford to lose. #REMARKS H03 1180 OF HON& MELVIN PRICE OF ILLINOIS# _MR& PRICE._ All but two H03 1190 of my nine terms in the House of Representatives has been served under H03 1200 the Speakership of SAM RAYBURN. Of this I am proud. I have H03 1210 a distinct admiration for this man we honor today because of the humility H03 1220 with which he carries his greatness. And SAM RAYBURN H03 1230 is a great man- one who will go down in American history as a truly H03 1240 great leader of the Nation. He will be considered not only great H03 1250 among his contemporaries, but as great among all the Americans who H03 1260 have played a part in the country's history since the beginning. H03 1270 I pay my personal tribute to SAM RAYBURN, stalwart Texan and H03 1280 great American, not only because today he establishes a record of H03 1290 having served as Speaker of the House of Representatives more than H03 1300 twice as long as Henry Clay, but because of the contributions he has H03 1310 made to the welfare of the people of the Nation during his almost half H03 1320 century of service as a Member of Congress. Speaker RAYBURN H03 1330 has not limited his leadership as a statesman to his direction H03 1340 of the House in the Speaker's chair. He had an outstanding record H03 1350 as a legislator since the start of his career in the House in 1913, H03 1360 the 63d Congress. No one has sponsored more progressive and important H03 1370 legislation than has SAM RAYBURN. He is the recognized "father" H03 1380 of the Rural Electrification Administration and the Security H03 1390 and Exchange Commission. But to run the gauntlet of the programs H03 1400 SAM RAYBURN brought into being through his legislative efforts H03 1410 would fill the pages of today's Record. No greater pleasure H03 1420 has come to me in my own service in this House than to be present H03 1430 today to participate in this tribute to this great Speaker, this great H03 1440 legislator, this great Texan, this great American. My sincere H03 1450 wish is that he continues to add to this record he sets here today. H03 1460 #REMARKS OF HON& JOHN S& MONAGAN OF CONNECTICUT# _MR& MONAGAN._ H03 1470 SAM RAYBURN is one of the greatest American public figures H03 1480 in the history of our country and I consider that I have been H03 1490 signally honored in the privilege of knowing SAM RAYBURN and sharing H03 1500 with him the rights and obligations of a Member of the House of H03 1510 Representatives in the Congress of the United States. Others H03 1520 may speak of Speaker RAYBURN'S uniquely long and devoted H03 1530 service; of his championship of many of the progressive social measures H03 1540 which adorn our statute books today, and of his cooperation in times H03 1550 of adversity with Presidents of both of our major parties in helping H03 1560 to pilot the Ship of State through the shoals of today's stormy H03 1570 international seas. I prefer to speak, however, of SAM RAYBURN, H03 1580 the person, rather than SAM RAYBURN, the American institution. H03 1590 Although SAM RAYBURN affects a gruff exterior in H03 1600 many instances, nevertheless he is fundamentally a man of warm heart H03 1610 and gentle disposition. No one could be more devoted than he to the H03 1620 American Congress as an institution and more aware of its historical H03 1630 significance in the political history of the world, and I shall never H03 1640 forget his moving talks, delivered in simple yet eloquent words, upon H03 1650 the meaning of our jobs as Representatives in the operation of representative H03 1660 government and their importance in the context of today's H03 1670 assault upon popular government. Above all, he is a person to H03 1680 whom a fledgling Representative can go to discuss the personal and professional H03 1690 problems which inevitably confront a new Congressman. In H03 1700 this role of father confessor, he has always been most characteristic H03 1710 and most helpful. On September 16, SAM RAYBURN will have H03 1720 served as Speaker twice as long as any predecessor and I am proud H03 1730 to join with others in marking this date, and in expressing my esteem H03 1740 for that notable American, SAM RAYBURN. H04 0010 _ORIGIN OF STATE AUTOMOBILE PRACTICES._ The practice of state-owned H04 0020 vehicles for use of employees on business dates back over forty years. H04 0030 At least one state vehicle was in existence in 1917. The H04 0040 state presently owns 389 passenger vehicles in comparison to approximately H04 0050 200 in 1940. The automobile maintenance unit, or motor pool, H04 0060 came into existence in 1942 and has been responsible for centralized H04 0070 maintenance and management of state-owned transportation since that H04 0080 time. The motor pool has made exceptional progress in automotive H04 0090 management including establishment of cost billing systems, records H04 0100 keeping, analyses of vehicle use, and effecting economies in vehicle H04 0110 operation. Cars were operated in 1959 for an average .027@ per mile. H04 0120 Purchase of state vehicles is handled similarly to all state H04 0130 purchases. Unit prices to the state are considerably lower than to H04 0140 the general public because of quantity purchases and no payment of state H04 0150 sales or federal excise taxes. _VEHICLE PURCHASE, ASSIGNMENT AND H04 0160 USE POLICIES._ The legislature's role in policy determination concerning H04 0170 state-owned vehicles has been confined almost exclusively to H04 0180 appropriating funds for vehicles. The meaningful policies governing H04 0190 the purchase, assignment, use and management of state vehicles have H04 0200 been shaped by the state's administrative officers. Meaningful H04 0210 policies include: (a) kinds of cars the state should own, (b) H04 0220 when cars should be traded, (c) the need and assignment of vehicles, H04 0230 (d) use of cars in lieu of mileage allowances, (e) employees taking cars H04 0240 home, and (f) need for liability insurance on state automobiles. H04 0250 A review of these policies indicates: _(1)_ The state purchases H04 0260 and assigns grades of cars according to need and position status H04 0270 of driver and use of vehicle. _(2)_ The purchase of compact (economy) H04 0280 cars is being made currently on a test basis. _(3)_ Cars H04 0290 are traded mostly on a three-year basis in the interest of economy. _(4)_ H04 0300 The factors governing need and assignment of cars are flexible H04 0310 according to circumstances. _(5)_ Unsuccessful efforts have been H04 0320 made to replace high mileage allowances with state automobiles. _(6)_ H04 0330 It is reasonably economical for the state to have drivers garage H04 0340 state cars at their homes. _(7)_ The state has recently undertaken H04 0350 liability insurance for drivers of state cars. _AUTOMOBILE PRACTICES H04 0360 IN OTHER STATES._ A survey of practices and/or policies in other H04 0370 states concerning assignment and use of state automobiles reveals H04 0380 several points for comparison with Rhode Island's practices. H04 0390 Forty-seven states assign or provide vehicles for employees on state H04 0400 business. Two other states provide vehicles, but only with legislative H04 0410 approval. States which provide automobiles for employees H04 0420 assign them variously to the agency, the individual, or to a central pool. H04 0430 Twenty-six states operate a central motor pool for acquisition, H04 0440 allocation and/or maintenance of state-owned vehicles. H04 0450 Nineteen states report laws, policies or regulations for assigning state H04 0460 vehicles in lieu of paying mileage allowances. Of these states the H04 0470 average "change-over" point (at which a car is substituted for allowances) H04 0480 is 13,200 miles per year. _MILEAGE ALLOWANCES._ Mileage H04 0490 allowances for state employees are of two types: (a) actual mileage H04 0500 and (b) fixed monthly allowances. Actual mileage allowances H04 0510 are itemized reimbursements allowed employees for the use of personally-owned H04 0520 vehicles on state business at the rate of .07@ per mile. Fixed H04 0530 monthly allowances are reimbursements for the same purpose except H04 0540 on a non-itemized basis. Both allowances are governed by conditions and H04 0550 restrictions set forth in detail in the state's Travel Regulations. H04 0560 Rhode Island's reimburseable rate of .07@ per mile for H04 0570 use of personally-owned cars compares favorably with other states' H04 0580 rates. The average of states' rates is .076@ per mile. H04 0590 Rhode Island's rate of .07@ per mile is considerably lower than H04 0600 reimburseable rates in the federal government and in industry nationally H04 0610 which approximate a .09@ per mile average. Actual mileage H04 0620 allowances are well-administered and not unduly expensive for the state. H04 0630 The travel regulations, requirements and procedures governing reimbursement H04 0640 are controlled properly and not overly restrictive. H04 0650 Fixed monthly allowances are a controversial subject. They have a great H04 0660 advantage in ease of audit time and payment. However, they lend themselves H04 0670 to abuse and inadequate control measures. Flat payments over H04 0680 $50 per month are more expensive to the state than the assignment of H04 0690 state-owned vehicles. _TRAVEL ALLOWANCES._ Travel allowances, including H04 0700 subsistence, have been revised by administrative officials recently H04 0710 and compare favorably with other states' allowances. With few H04 0720 exceptions travelers on state business are allowed actual travel expenses H04 0730 and $15 per day subsistence. Travel allowances are well-regulated H04 0740 and pose little problem in administration and/or audit control. #ORIGIN H04 0750 OF STATE AUTOMOBILE PRACTICES# _GENERAL BACKGROUND._ It H04 0760 is difficult to pinpoint the time of origin of the state purchasing automobiles H04 0770 for use of employees in Rhode Island. Few records are available H04 0780 concerning the subject prior to 1940. Those that are available H04 0790 shed little light. The Registry of Motor Vehicles indicates that H04 0800 at least one state automobile was registered as far back as 1917. It H04 0810 should be enough to say that the practice of the state buying automobiles H04 0820 is at least forty years old. The best reason that can be H04 0830 advanced for the state adopting the practice was the advent of expanded H04 0840 highway construction during the 1920s and '30s. At that time highway H04 0850 engineers traveled rough and dirty roads to accomplish their duties. H04 0860 Using privately-owned vehicles was a personal hardship for such employees, H04 0870 and the matter of providing state transportation was felt perfectly H04 0880 justifiable. Once the principle was established, the increase H04 0890 in state-owned vehicles came rapidly. And reasons other than employee H04 0900 need contributed to the growth. Table 1 immediately below shows H04 0910 the rate of growth of vehicles and employees. This rate of increase H04 0920 does not signify anything in itself. It does not indicate loose management, H04 0930 ineffective controls or poor policy. But it does show that automobiles H04 0940 have increased steadily over the years and in almost the same H04 0950 proportion to the increase of state employees. In the past twenty H04 0960 years the ratio of state-owned automobiles per state employees has varied H04 0970 from 1 to 22 then to 1 to 23 now. Whether there were too few automobiles H04 0980 in 1940 or too many now is problematical. The fact is simply H04 0990 that state-owned vehicles have remained in practically the same proportion H04 1000 as employees to use them. _HISTORY AND OPERATION OF THE MOTOR H04 1010 POOL._ While the origin of state-owned automobiles may be obscured, H04 1020 subsequent developments concerning the assignment, use, and management H04 1030 of state automobiles can be related more clearly. Prior to 1942, H04 1040 automobiles were the individual responsibility of the agency to which H04 1050 assigned. This responsibility included all phases of management. It H04 1060 embraced determining when to purchase and when to trade vehicles, who H04 1070 was to drive, when and where repairs were to be made, where gasoline H04 1080 and automobile services were to be obtained and other allied matters. H04 1090 In 1942, however, the nation was at war. Gasoline and automobile tires H04 1100 were rationed commodities. The state was confronted with transportation H04 1110 problems similar to those of the individual. It met these problems H04 1120 by the creation of the state automobile maintenance unit (more popularly H04 1130 called the motor pool), a centralized operation for the maintenance H04 1140 and control of all state transportation. The motor pool then, H04 1150 as now, had headquarter facilities in Providence and other garages located H04 1160 throughout the state. It was organizationally the responsibility H04 1170 of the Department of Public Works and was financed on a rotary fund H04 1180 basis with each agency of government contributing to the pool's operation. H04 1190 In 1951 the pool's operation was transferred to the newly-created H04 1200 Department of Administration, an agency established as the H04 1210 central staff and auxiliary department of the state government. The management H04 1220 of state-owned vehicles since that time has been described in H04 1230 a recent report in the following manner: " Under this new H04 1240 management considerable progress appears to have been made. The agencies H04 1250 of government are now billed for the actual cost of services provided H04 1260 to each passenger car rather than the prior uniform charge for all H04 1270 cars. Whereas the maintenance rotary fund had in the past sustained H04 1280 losses considerably beyond expectations, the introduction of the cost-billing H04 1290 system plus other control refinements has resulted in keeping H04 1300 the fund on a proper working basis. One indication of the merits of H04 1310 the new management is found in the fact that during the period 1951-1956, H04 1320 while total annual mileage put on the vehicles increased 35%, the H04 1330 total maintenance cost increased only 11%. " In order H04 1340 to further refine the management of passenger vehicles, on July 1, 1958, H04 1350 the actual title to every vehicle was transferred, by Executive H04 1360 Order, to the Division of Methods, Research and Office Services. H04 1370 The objective behind this action was to place in one agency the responsibility H04 1380 for the management, assignment, and replacement of all vehicles. H04 1390 (Note: So far as State Police cars are concerned, only their H04 1400 replacement is under this division). This tied in closely with the H04 1410 current attempt to upgrade state-owned cars to the extent that vehicles H04 1420 are not retained beyond the point where maintenance costs (in light H04 1430 of depreciation) become excessive. Moreover, it allows the present management H04 1440 to reassign vehicles so that mileage will be more uniformly H04 1450 distributed throughout the fleet; for example, if one driver puts on H04 1460 22,000 miles per year and another driver 8,000 miles per year, their H04 1470 cars will be switched so that both cars will have 30,000 miles after two H04 1480 years, rather than 44,000 miles (and related higher maintenance costs) H04 1490 and 16,000 miles respectively". The motor pool is a completely H04 1500 centralized and mechanized operation. It handles all types of H04 1510 vehicle maintenance, but concentrates more on "service station activities" H04 1520 than on extensive vehicle repairs. It contracts with outside H04 1530 repair garages for much of the latter work. Where the pool excels is H04 1540 in its compilation of maintenance and cost-data studies and analyses. H04 1550 Pool records reveal in detail the cost per mile and miles per gallon H04 1560 of each vehicle, the miles traveled in one year or three years, the periods H04 1570 when vehicle costs become excessive, and when cars should be traded H04 1580 for sound economies. From this, motor pool personnel develop other H04 1590 meaningful and related data. In 1959-60, vehicles averaged an operating H04 1600 cost of .027@ per mile. Based on this figure and considering depreciation H04 1610 costs of vehicles, pool personnel have determined that travel H04 1620 in excess of 10,000 miles annually is more economical by state car H04 1630 than by payment of allowances for use of personally-owned vehicles. They H04 1640 estimate further that with sufficient experience and when cost-data H04 1650 of compact cars is compiled, the break-even point may be reduced to H04 1660 7,500 miles of travel per year. Table 2 shows operating cost data of H04 1670 state vehicles selected at random. One matter of concern to H04 1680 the complete effectiveness of pool operations is the lack of adequate H04 1690 central garage facilities. Present pool quarters at two locations in H04 1700 Providence are crowded, antiquated and, in general, make for inefficient H04 1710 operation in terms of dispersement of personnel and duplication of H04 1720 such operational needs as stock and repair equipment. Good facilities H04 1730 would be a decided help to pool operations and probably reduce vehicle H04 1740 costs even more. _PURCHASING PRACTICES._ The purchase of state-owned H04 1750 vehicles is handled in the same manner as all other purchases H04 1760 of the state. Requests are made by the motor pool along with any necessary H04 1770 cooperation from the agencies to which assignments of cars will H04 1780 be made. Bids are evaluated by the Division of Purchases with the H04 1790 assistance of pool staff, and awards for the purchase of the automobiles H04 1800 are made to the lowest responsible bidders. Unit prices for state H04 1810 vehicles are invariably lower than to the general public. The reasons H04 1820 are obvious: (1) the state is buying in quantity, and (2) it has no H04 1830 federal excise or state sales tax to pay. Until 1958 the state was also H04 1840 entitled to a special type of manufacturers' discount through the H04 1850 dealers. In that ownership of all vehicles rests with the state H04 1860 motor pool, cars are paid for with funds appropriated to the agencies H04 1870 but transferred to the rotary fund mentioned earlier. This is a normal H04 1880 governmental procedure which reflects more accurately cost-accounting H04 1890 principles. The assignment and use of vehicles after purchase is H04 1900 another matter to be covered in detail later. #VEHICLE PURCHASE, H04 1910 ASSIGNMENT, AND USE POLICIES# Probably the most important of all matters H04 1920 for review are the broad administrative policies governing the purchase, H04 1930 assignment, use, and management of state vehicles. The legislature's H04 1940 role in policy determination in this area for years has been H04 1950 confined almost solely to the amount of funds appropriated annually H04 1960 for the purchase and operation of vehicles. The more meaningful policies H04 1970 have been left to the judgment of the chief administrative officer H04 1980 of the state- the Director of Administration. H05 0010 #THE RHODE ISLAND PROPERTY TAX# There was a time some years ago when H05 0020 local taxation by the cities and towns was sufficient to support their H05 0030 own operations and a part of the cost of the state government as H05 0040 well. For many years a state tax on cities and towns was paid by the H05 0050 several municipalities to the state from the proceeds of the general property H05 0060 tax. This tax was discontinued in 1936. Since that time H05 0070 the demands of the citizens for new and expanded services have placed H05 0080 financial burdens on the state which could not have been foreseen in H05 0090 earlier years. At the same time there has been an upgrading and expansion H05 0100 of municipal services as well. Thus, there has come into being H05 0110 a situation in which the state must raise all of its own revenues and, H05 0120 in addition, must give assistance to its local governments. This H05 0130 financial assistance from the state has become necessary because H05 0140 the local governments themselves found the property tax, or at least at H05 0150 the rates then existing, insufficient for their requirements. H05 0160 Consequently there have developed several forms of grants-in-aid and H05 0170 shared taxes, as well as the unrestricted grant to local governments H05 0180 for general purposes whose adoption accompanied the introduction of a H05 0190 sales tax at the state level. Notwithstanding state aid, the local H05 0200 governments are continuing to seek additional revenue of their own H05 0210 by strengthening the property tax. This is being done both by the revaluation H05 0220 of real property and by seeking out forms of personal property H05 0230 hitherto neglected or ignored. Taxation of tangible movable H05 0240 property in Rhode Island has been generally of a "hands off" nature H05 0250 due possibly to several reasons: (1) local assessors, in the main, H05 0260 are not well paid and have inadequate office staffs, (2) the numerous H05 0270 categories of this component of personal property make locating extremely H05 0280 difficult, and (3) the inexperience of the majority of assessors H05 0290 in evaluating this type of property. _PROBLEMS OF TAXING PERSONAL H05 0300 PROPERTY._ Among the many problems in the taxing of personal property, H05 0310 and of movable tangible property in particular, two are significant: H05 0320 (1) situs, (2) fair and equitable assessment of value. These H05 0330 problems are not local to Rhode Island, but are recognized as common H05 0340 to all states. _SITUS OF PROPERTY._ Although the laws of the various H05 0350 states, in general, specify the situs of property, i&e&, residence H05 0360 or domicile of the owner, or location of the property, the exceptions H05 0370 regarding boats, airplanes, mobile homes, etc&, seem to add to H05 0380 the uncertainty of the proper origination point for assessment. H05 0390 Rhode Island law specifies that all real estate is taxable in the H05 0400 town in which it is situated. It also provides for the taxation of all H05 0410 personal property, belonging to inhabitants of the state, both tangible H05 0420 and intangible, and the tangible personal property of non-residents H05 0430 in this state. In defining personal property, it specifically mentions H05 0440 "all ships or vessels, at home or abroad". Intangible H05 0450 property is taxable wherever the owner has a place of abode the greater H05 0460 portion of the year. Although a similar situs for tangible property H05 0470 is mentioned in the statute, this is cancelled out by the provision H05 0480 that definite kinds of property "and all other tangible property" H05 0490 situated or being in any town is taxable where the property is situated. H05 0500 This would seem to fix the tax situs of all movable personal property H05 0510 at its location on December 31. Both boats and aircraft would H05 0520 fall within this category, as well as motor vehicles. The location H05 0530 of the latter now is determined for tax purposes at the time of registration, H05 0540 and it is now accepted practice to consider a motor vehicle H05 0550 as being situated where it is garaged. Obviously, it would be impossible H05 0560 to determine where every vehicle might be on the 31st day of December. H05 0570 In view of the acceptance accorded the status of motor vehicles H05 0580 for tax purposes, in the absence of any specific provision it would H05 0590 seem entirely consistent to apply the same interpretation to boats or H05 0600 aircraft. A recent example of this problem is the flying of six H05 0610 airplanes, on December 31, 1960, from the Newport Airpark in Middletown, H05 0620 to the North Central Airport in Smithfield. This situation H05 0630 resulted in both towns claiming the tax, and probably justifiably. H05 0640 Middletown bases its claim on the general provision of the law that "all H05 0650 rateable property, both tangible and intangible, shall be taxed H05 0660 to the owner thereof in the town in which such owner shall have had his H05 0670 actual place of abode for the larger portion of the twelve (12) months H05 0680 next preceding the first day of April in each year". The H05 0690 Smithfield tax assessor, in turn, claims the tax under the provision H05 0700 of law "**h and all other tangible personal property situated or being H05 0710 in any town, in or upon any **h place of storage **h shall be taxed H05 0720 to such person **h in the town where said property is situated". H05 0730 _ASSESSMENT OF VALUE._ This problem of fair and equitable assessment H05 0740 of value is a difficult one to solve in that the determination of H05 0750 fair valuation is dependent on local assessors, who in general are H05 0755 non-professional H05 0760 and part-time personnel taking an individualistic approach H05 0770 to the problem. This accounts for the wide variance in assessment H05 0780 practices of movable tangible property in the various municipalities in H05 0790 Rhode Island. This condition will undoubtedly continue until H05 0800 such time as a state uniform system of evaluation is established, H05 0810 or through mutual agreement of the local assessing officials for a method H05 0820 of standard assessment practice to be adopted. The Rhode H05 0830 Island Public Expenditure Council in its publication once commented: H05 0840 " The most realistic way of facing up to this problem would H05 0850 be to have the State take over full responsibility for assessing H05 0860 all taxable property. An adequately staffed and equipped State assessing H05 0870 office could apply uniform methods and standards which would go far H05 0880 toward producing equitable assessments on all properties throughout H05 0890 the State. A single statewide assessing unit would eliminate the differences H05 0900 and complications that are inherent in a system of 39 different H05 0910 and independent assessing units". The Institute of Public H05 0920 Administration, in its report to the State Fiscal Study Commission H05 0930 in 1959, recommended "consolidating and centralizing all aspects H05 0940 of property tax administration in a single state agency professionally H05 0950 organized and equipped for the job". The resulting setup, it was H05 0960 declared, "would be similar to that which is in successful operation H05 0970 in a number of metropolitan counties as large or larger than Rhode H05 0980 Island". _PRACTICES IN RHODE ISLAND._ To determine the practice H05 0990 and attitude of municipal governments concerning tangible movable property, H05 1000 a questionnaire was sent to all local government assessors or H05 1010 boards of assessors in Rhode Island. The replies from each H05 1020 individual town are not given in detail because the questions asked the H05 1030 personal opinion of the several assessors and are not necessarily the H05 1040 established policy of the town in each case. There are legitimate reasons H05 1050 for differences of opinion among the assessors as a whole and among H05 1060 the public officials in each town. These opinions of the assessors H05 1070 are of significance in indicating what their thinking seems to be at H05 1080 the present time. In reply to a question of whether they now H05 1090 tax boats, airplanes and other movable property excluding automobiles, H05 1100 nineteen said that they did and twenty that they did not. The wording H05 1110 of the question was quite general and may have been subject to different H05 1120 interpretations. One assessor checked boats only, another trailers H05 1130 and tractors, one mentioned house trailers, and two others referred H05 1140 to trailers without specifying the type. In two cases, airplanes only H05 1150 were indicated. It is difficult to tabulate exactly what was H05 1160 meant in each individual situation, but the conclusion may be drawn H05 1170 that 21 towns do not assess movable personal property, and of the remainder H05 1180 only certain types are valued for tax purposes. Boats were indicated H05 1190 specifically by only one of the five towns known to tax boats. H05 1200 It would seem, then, that movable property and equipment is not taxed H05 1210 as a whole but that certain types are taxed in towns where this is bound H05 1220 to be expedient for that particular kind of personal property. H05 1230 So few answered the question relating to their efforts to assess H05 1240 movable property that the results are inconclusive. Only four towns indicated H05 1250 that they made any more than a normal effort to list property H05 1260 of this kind. Of greater interest is a question as to whether H05 1270 movable property was assessed according to its location or ownership. H05 1280 Fifteen stated that it was according to location, four by residence H05 1290 of the owner, and nineteen did not answer. Twenty-seven assessors H05 1300 stated that they were in favor of improved means for assessing movable H05 1310 personal property, and only five were opposed. Seven others expressed H05 1320 no opinion. On this point there was fairly general agreement that H05 1330 assessors would like to do more than they are doing now. It is not H05 1340 clear, however, whether they are thinking of all movable property or H05 1350 only of boats, trailers, aircraft or certain other types of personal H05 1360 property whose assessment would be advantageous to their particular towns. H05 1370 Another question that was asked of the assessors was whether H05 1380 they favored the assessment of movable property at its location or H05 1390 at the residence of the owner. Eighteen voted for assessment by the H05 1400 town in which it is located and eleven preferred assessment by the town H05 1410 in which the owner resides. Ten others made no reply. Of those who H05 1420 have an opinion, it seems that assessment by location is preferred. There H05 1430 was one vote for location being the place where the property is H05 1440 situated for the greater portion of the twelve months preceding the assessment H05 1450 date. To summarize, it may be said that there is no one H05 1460 prevailing practice in Rhode Island with respect to the taxation H05 1470 of movable property, that assessors would like to see an improvement, H05 1480 and of those who have an opinion, that assessment by the town of location H05 1490 is preferred on the basis of their present knowledge. The need for H05 1500 greater knowledge is evident from their replies. #BOATS AS PERSONAL H05 1510 PROPERTY# _TAXING OF BOATS._ Interest has been shown for a number H05 1520 of years by local assessors in the possibility of taxing boats. H05 1530 Assessors in Rhode Island are charged not only with placing a valuation H05 1540 upon real and personal property, but they also have the responsibility H05 1550 to raise by a tax "a sum not less than nor more than" a specified H05 1560 amount as ordered by a city council or financial town meeting. H05 1570 It has been obvious to the assessors, particularly those in shore H05 1580 communities, that boats comprise the largest category of tangible personal H05 1590 property which they have been unable to reach. Through their H05 1600 professional organization, the Rhode Island Tax Officials Association H05 1610 the question of taxing boats long has been debated and discussed. H05 1620 No satisfactory solution has been found, but this is due more to the H05 1630 difficulties inherent in the problem than to a lack of interest or diligence H05 1640 on the part of the assessors. It has been estimated that H05 1650 the value of boats in Rhode Island waters is something in excess H05 1660 of fifty million dollars, excluding commercial boats. It is obvious that H05 1670 this is a potential and lucrative source of revenue for the assessors H05 1680 of those towns where a substantial amount of such property would be H05 1690 subject to taxation. It is known that at least five towns (Barrington, H05 1700 Bristol, Narragansett, Newport and Westerly) place some H05 1710 value on some boats for tax purposes. However, few are taxed, and H05 1720 the owners and location of most boats are unknown to the assessors on H05 1730 the date of assessment of town valuations. No one really knows H05 1740 how many boats there actually are or what their aggregate value may H05 1750 be. Slightly more than 5,000 boats were registered with the Coast Guard H05 1760 prior to the recent passage of the state boating law. Only a few H05 1770 more than 10,000 boats had been registered with the Division of Harbors H05 1780 and Rivers at the end of the 1960 boating season, but many had H05 1790 been taken out of the water early when the threat of a hurricane brought H05 1800 the season to an early close. The assessors' association, H05 1810 meeting at Narragansett in September 1960, devoted its session to a H05 1820 discussion of the boat problem. H06 0010 Local industry's investment in Rhode Island was the big story H06 0020 in 1960's industrial development effort. Fifty-two companies started H06 0030 or committed themselves to new plant construction, totaling 1,418,000 H06 0040 square feet and representing an investment of $11,900,000; a H06 0050 new post-World War /2, record. With minor exceptions, this expansion H06 0060 was instituted either by firms based in Rhode Island or out-of-state H06 0080 manufacturers already operating here. What made these new H06 0090 location figures particularly impressive was the fact that although 1960 H06 0100 was a year of mild business recession throughout the nation, Rhode H06 0110 Island scored marked progress in new industry, new plants, and new jobs. H06 0120 Of the major expansions in 1960, three were financed under H06 0130 the R& I& Industrial Building Authority's 100% guaranteed H06 0140 mortgage plan: Collyer Wire, Leesona Corporation, and American H06 0150 Tube + Controls. Leading firms that arranged their own financing H06 0160 included Speidel Corporation, Cornell-Dubilier, Photek, Inc& H06 0170 Division of Textron, Narragansett Gray Iron Foundry, W& R& H06 0180 Cobb Company, and Mays Manufacturing Company. Expansion H06 0190 and relocation of industry in Rhode Island is the direct responsibility H06 0200 of the Development Council's Industrial Division, and the figures H06 0210 quoted above indicate a successful year's operation. Industrial H06 0220 Division personnel worked with 54 out-of-state and 97 Rhode Island H06 0230 concerns during 1960, many of whom are still interested in a Rhode H06 0240 Island location. They are conscious of this state's new feeling H06 0250 of optimism and assurance and are definitely impressed by the number of H06 0260 new plants and construction projects in Rhode Island. _AIDS TO H06 0270 SMALL BUSINESS# Although much of the Industrial Division's promotional H06 0280 effort is devoted to securing new locations and expansions by H06 0290 major industries, small business is also afforded considerable attention. H06 0300 Our Office of Foreign and Domestic Commerce carries on a vigorous H06 0310 program, directly aimed at solving and expediting the problems of H06 0320 manufacturers in the lower employment categories. A primary function H06 0330 is the operation of a Government Bid Center, which receives H06 0340 bids daily from the Federal Government's principal purchasing agencies. H06 0350 Assistance is rendered to interested Rhode Island businessmen H06 0360 concerning interpretation of bid invitations, where to obtain specifications, H06 0370 and follow-ups concerning qualification. During the past year, H06 0380 10,517 government bid invitations were received and 4,427 procurement H06 0390 leads were mailed to Rhode Island manufacturers. In addition, H06 0400 the Office's domestic trade program provided consultant services H06 0410 to those seeking information on establishment of new businesses; H06 0420 how and where to apply for financial assistance; details on marketing; H06 0430 information concerning patents, copyrights and trade marks, availability H06 0440 of technical reports, and other subjects of interest to small H06 0450 business. The Office of Foreign and Domestic Commerce is H06 0460 also active in the field of international trade, assisting Rhode Island H06 0470 firms in developing and enlarging markets abroad. This office cooperates H06 0480 with the U& S& Department of Commerce in giving statewide H06 0490 coverage H06 0500 to services which include: statistics on markets abroad; locating H06 0510 foreign agents, buyers, distributors, etc&; information on H06 0520 foreign and domestic import duties and regulations, licensing, investments, H06 0530 and establishing of branch representatives or plants abroad, and H06 0540 documentary requirements concerning export shipments and arrangements H06 0550 for payment. During the year 1960, this office supplied 954 visitors H06 0560 with information related to foreign and domestic commerce, and H06 0570 made 73 field visits. _ADVERTISING PROGRAM_ Our media advertising H06 0580 continued, during 1960, its previous effective program that stressed H06 0590 such specifics as 100% financing, plant availabilities, and location H06 0600 advantages. We also continued to run a series of ads featuring endorsement H06 0610 of Rhode Island by industrialists who had recently established H06 0620 new plants here. To reach a still greater audience of location-minded H06 0630 manufacturers, our industrial advertising budget for the fiscal H06 0640 year was increased from $32,000 to $40,000, and the Industrial H06 0650 Building Authority's financial participation was upped from $17,000 H06 0660 to $20,000. Newspaper advertising was mainly concentrated in H06 0670 the New York Times and the Wall Street Journal (Eastern and Midwestern H06 0680 editions) which averaged two prominent ads per month, and to H06 0690 a lesser degree the New York Herald Tribune and, for the west coast, H06 0700 the Los Angeles Times and the Wall Street Journal (Pacific H06 0710 Coast edition). In addition to the regular schedule, advertisements H06 0720 were run for maximum impact in special editions of the New York Times, H06 0730 Boston Herald, American Banker, Electronic News and, for local H06 0740 promotion, the Providence Sunday Journal. Magazine advertising H06 0750 included Management Methods, the New Englander, U& S& Investor, H06 0760 and Plant Location. The direct mail campaign consisted H06 0770 of 3 intra state mailings of 1680 letters each and 6 out-of-state directed H06 0780 to electronics, plastics, pharmaceutical, and business machine manufacturers, H06 0790 and to publishers. These totaled 6,768 pieces of correspondence. H06 0800 The 1960 advertising campaign brought a total of 239 H06 0810 inquiries; 164 from media and 75 from direct mail. Two hundred and H06 0820 nineteen were received from 35 of our 50 United States and 11 came from H06 0830 foreign countries. New York led in the number of inquiries, followed H06 0840 by California, New Jersey, Massachusetts, and Pennsylvania. H06 0850 Among foreign countries responding were Germany, Canada, Brazil and H06 0860 India. _INDUSTRIAL PROMOTION_ An important operation in soliciting H06 0870 industrial locations involves what we term "Missionary calls" H06 0880 by one of this Division's industrial promotion specialists. These H06 0890 consist of visits, without previous announcement, on top officials of H06 0900 manufacturing concerns located in highly industrialized areas. More H06 0910 than 25 carefully selected cities were visited, including New York, H06 0920 Brooklyn, Long Island City, Newark, Elizabeth, Stamford, Waterbury, H06 0930 New Haven, Bridgeport, Boston, Cambridge, Worcester, and H06 0940 Waltham. Out of a total of 603 calls, 452 contacts were established H06 0950 with top executive personnel. We received 76 out-of-state visitors H06 0960 interested in investigating Rhode Island's industrial advantages, H06 0970 and Industrial Division personnel made 55 out-of-state follow-up H06 0980 visits. _INDUSTRIAL CONFERENCES_ During 1960, two important conferences H06 0990 were organized by the Development Council's Industrial Division. H06 1000 In June, the Office of Foreign and Domestic Commerce- H06 1010 in conjunction with local trade associations, chambers of commerce, H06 1020 and bank officials- sponsored a World Trade Conference at the Sheraton-Biltmore H06 1030 Hotel. Its purpose was to find ways of offsetting the H06 1040 United States' declining balance of trade for 1958 and 1959. Approximately H06 1050 100 representatives of business attended this conclave and H06 1060 the R& I& Export Conference Committee later voted to continue H06 1070 the activity as an annual event. On October 8th of last year, H06 1080 the Industrial Division sponsored the Governor's Conference H06 1090 on Industrial Development at the former Henry Barnard School. A H06 1100 comprehensive program devoted to the various phases of the development H06 1110 effort attracted 143 interested individuals. Morning sessions H06 1120 included addresses by Ward Miller, Jr& of the U& S& Dept& H06 1130 of Commerce. Richard Preston, executive director of the New Hampshire H06 1140 State Planning and Development Commission, and Edwin C& H06 1150 Kepler of General Electric Company. Workshop sessions in the afternoon H06 1160 featured development executives from Pennsylvania, Connecticut H06 1170 and Maine, and rounded out a rewarding program. In connection H06 1180 with this conference, a 64-page supplement was published in the October H06 1190 2nd edition of the Providence Sunday Journal. Devoted to the H06 1200 improvement in business climate and increase in industrial construction H06 1210 in Rhode Island, it has proved a valuable mailing piece for this H06 1220 Division. More than 2000 copies have been sent out to prospective clients. H06 1230 _MAILINGS AND PUBLICATIONS_ Other special mailings by the H06 1240 Industrial Division included copies of speeches delivered at the Governor's H06 1250 Conference, letters and brochures to conferees at Med-Chemical H06 1260 Symposium at University of Rhode Island and letters and reprints H06 1270 of industrial advertisements to such organizations as Society H06 1280 of Industrial Realtors. 1184 copies of the R& I& Directory of H06 1290 Manufacturers were distributed: 643 in-state and 541 out-of-state. H06 1300 The Industrial Division published, in 1960, a new, attractive H06 1310 industrial brochure, "Rhode Island- Right For Industry", H06 1315 and prepared H06 1320 copy for a new edition of the Directory of Manufacturers (to be H06 1330 printed shortly), and for a new space catalogue. Additional promotional H06 1340 activities included organizing the dedication program for Operation H06 1350 Turnkey, the new automated post office, and a conference with H06 1360 representatives of Brown University, Providence College, and University H06 1370 of Rhode Island, and eight electronics concerns regarding H06 1380 the inauguration of a training program for electronics personnel. #PLANNING H06 1390 DIVISION# Stated in its simplest terms, the main job of the H06 1400 Planning Division is to plan for the future of the State of Rhode H06 1410 Island. The activities of the Planning Division are defined in considerable H06 1420 detail in the enabling act of the Development Council, which H06 1430 assigns to the agency both broad responsibilities and specific duties H06 1440 in the field of planning. Two years ago, the Institute of H06 1450 Public Administration issued an extremely comprehensive report entitled H06 1460 "State-Local Relations in Metropolitan Rhode Island. As H06 1470 the result of an exhaustive review of the recommendations contained in H06 1480 this report, plus an analysis of our own enabling act, the Planning H06 1490 Division developed a number of basic planning objectives which caused H06 1500 a reorientation of its work program. These objectives are stated here H06 1510 because of their importance in understanding the current activities H06 1520 of the Planning Division. _(1)_ First priority will be given to H06 1530 the preparation of a meaningful state guide plan to serve as a background H06 1540 for all other planning activities in the state. _(2)_ Recognizing H06 1550 the truth of the statement by the Institute of Public Administration H06 1560 that "Metropolian Planning (in Rhode Island) means, or H06 1570 should mean, state planning", the state guide plan will take into account H06 1580 the metropolitan nature of many of Rhode Island's problems. H06 1590 _(3)_ It will continue to be an objective of this division to encourage H06 1600 the acceptance of planning as a proper and continuing responsibility H06 1610 of local government. To this end, the community assistance program H06 1620 of the planning division will continue to be operated as a staff function H06 1630 to make available, on a shared cost basis, technical planning H06 1640 assistance to those communities in the state unable to maintain their H06 1650 own planning staff. _(4)_ The planning division will take the initiative H06 1660 in encouraging planning cooperation at all levels of government; H06 1670 among the operating departments of the state; between the cities H06 1680 and towns of the state; and on a regional basis between the six New H06 1690 England states. _(5)_ On the basis that all citizens of the state H06 1700 are entitled to benefit equally in the development of its resources, H06 1710 plans for the provision of essential services (such as water) will H06 1720 be based on need regardless of arbitrary political boundaries, within H06 1730 the framework of the state plan. _(6)_ The state development budget H06 1740 will reflect the capital needs of all the state agencies and the priority H06 1750 of the projects in the budget will be based on the state plan. H06 1760 _(7)_ In preparing the state guide plan, particular attention will H06 1770 be given means of strengthening the economy of the state through the H06 1780 development of industry and recreation. Functionally the planning H06 1790 division carries out four activities: long-range state planning, H06 1800 current state planning, local planning assistance; and the preparation H06 1810 of the state development budget. _LONG RANGE STATE PLANNING_ H06 1820 The planning division has embarked on the most complete and comprehensive H06 1830 state planning program in the nation. The long range aspects of H06 1840 this program are divided into four distinct phases: basic mapping, H06 1850 inventory, analysis and plan and policy formation. The work program, H06 1860 as it was originally proposed, was to take five years to complete. Recent H06 1870 events- particularly the necessity of providing planning information H06 1880 for the statewide origin/destination study of the Department H06 1890 of Public Works- indicate that this schedule will have to be accelerated. H06 1900 The basic mapping phase of the program has been completed and H06 1910 the inventory phase is scheduled for completion July 1, 1961. _BASIC H06 1920 MAPPING_ Since accurate base maps are necessary for any planning H06 1930 program, the first step taken by the planning division to implement the H06 1940 long range state plan has been to prepare two series of base maps- H06 1950 one at a scale of 1 inch to a mile, and the second a series of 26 sheets H06 1960 at a scale of 1 inch to 2000 feet, covering the entire state. With H06 1970 these maps completed, the inventory phase of the plan has been started. H06 1980 _INVENTORY_ With the aid of matching federal funds available H06 1990 under Section 701 of the Housing Act of 1954 as amended, the planning H06 2000 division began a one year program July 1, 1960 to complete the inventory H06 2010 phase of the state planning program. this phase consists of four H06 2020 items: urban land use, rural land use, physical features and public H06 2030 utility service areas. Since the validity of all subsequent planning H06 2040 depends on the accuracy of the basic inventory information, great care H06 2050 is being taken that the inventory is as complete as possible. H06 2060 The urban land use study carried out by the planning division staff H06 2070 has consisted of identifying and mapping all urban land uses which are H06 2080 of significance to statewide planning. The rural land use study is H06 2090 being carried out under contract by the University of Rhode Island H06 2100 and identifies all agricultural land uses in the state by type of use. H06 2110 The mapping of important physical features such as slopes and types H06 2120 of soil and the collection of all available information pertaining to H06 2130 public utility service areas are being conducted as staff projects and, H06 2140 like the other two inventory projects, are scheduled for completion H06 2150 July 1, 1961. _ANALYSIS_ The collection of information is meaningless H06 2160 unless it is understood and used for a definite purpose. H07 0010 _SPECIAL DISTRICTS IN RHODE ISLAND._ It is not within the scope of H07 0020 this report elaborate in any great detail upon special districts in H07 0030 Rhode Island. However, a word should be mentioned in regard to them H07 0040 as independent units of government. There are forty-seven special H07 0050 district governments in Rhode Island (excluding two regional school H07 0060 districts, four housing authorities, and the Kent County Water H07 0070 Authority). These forty-seven special purpose governments have the H07 0080 authority to levy taxes, to borrow money, own property, sue and be sued, H07 0090 and in general to exercise normal corporate powers. Unlike cities H07 0100 and towns, however, they do not have to submit any financial statements H07 0110 to the state Bureau of Audits. It is not an exaggeration to say H07 0120 that the state government has little or no fiscal control over these units H07 0130 of government. In addition to the collection of service charges, H07 0140 the special districts levy annual property taxes of approximately $450,000. H07 0150 #FISCAL YEARS IN OTHER STATES# _COMPARATIVE DATA._ A H07 0160 review of practices in other states regarding fiscal uniformity is pertinent H07 0170 to this report. Included in the findings are: _1._ Forty-six H07 0180 states, including Rhode Island, end their fiscal year on June H07 0190 30. The other four states end on varying dates: Alabama (Sept& H07 0200 30), New York (March 31), Pennsylvania (May 31), and Texas (August H07 0210 31). _2._ In sixteen states, the fiscal year ending of the H07 0220 cities (June 30) is the same as that of the state: Alaska, Arizona, H07 0230 California, Delaware, Massachusetts, Montana, Nevada, New Mexico, H07 0240 North Carolina, North Dakota, Oklahoma, Oregon, Vermont, H07 0250 West Virginia, Wyoming, and Hawaii). _3._ In eleven states, H07 0260 the fiscal year of the cities ends on December 31, while the state fiscal H07 0270 year ends on June 30 (Arkansas, Colorado, Indiana, Kansas, New H07 0280 Hampshire, New Jersey, Ohio, South Dakota, Utah, Washington, H07 0290 and Wisconsin). _4._ In eight states whose fiscal years close H07 0300 on June 30, a majority of their cities close their fiscal year on December H07 0310 31: (Georgia, Iowa, Kentucky, Maine, Maryland, Minnesota, H07 0320 Virginia, and South Carolina). _5._ One state, Alabama, closes H07 0330 its fiscal year on September 30, and all cities in the state, with H07 0340 one exception, also close fiscal years on September 30. _6._ H07 0350 Mississippi closes its fiscal year on June 30, while all of its cities H07 0360 close their fiscal years on September 30. _7._ Pennsylvania closes H07 0370 its fiscal year on May 31. All of its cities close their fiscal H07 0380 years on December 31. The remaining twelve states have varying H07 0390 fiscal years for the state, city and local governments. However, H07 0400 only Illinois, Oregon, Louisiana and Rhode Island have a situation H07 0410 in which the sundry units of government vary widely in relation to fiscal H07 0420 uniformity. #FISCAL UNIFORMITY: ADVANTAGES AND DISADVANTAGES# H07 0430 _ADVANTAGES._ An excellent summary of advantages concerning H07 0440 the uniform fiscal year and coordinated fiscal calendars was contained H07 0450 in a paper presented by a public finance authority recently. He listed H07 0460 among the values of fiscal uniformity: _1._ The uniform fiscal H07 0470 year requires compliance with common sense administration of local H07 0480 finances: adoption of the budget, or financial plan, in advance of spending. H07 0490 _2._ The uniform fiscal year ensures conformance with another H07 0500 common sense rule, that of having cash in the bank before checks H07 0510 are drawn. It enables towns to make more economical purchases and to H07 0520 take advantage of cash discounts. _3._ The uniform fiscal year promotes H07 0530 more careful budgeting and strengthens control over expenditures. H07 0540 By fixing the tax rate in advance of spending, upper limits are set H07 0550 on expenditures. _4._ The uniform fiscal year brings the town's H07 0560 fiscal year into line with that of the schools, which expend the largest H07 0570 share of local disbursements. This greatly simplifies the town's H07 0580 bookkeeping and financial reporting. _5._ The uniform fiscal H07 0590 year eliminates interest charges on money borrowed in the form of tax H07 0600 anticipation notes. Furthermore, tax collections not immediately needed H07 0610 for current expenditures may be invested in short-term treasury notes, H07 0620 augmenting the town's miscellaneous revenues and reducing the tax H07 0630 levy. _6._ The uniform fiscal year facilitates inter-town comparison H07 0640 of revenues and expenditures. When towns have the same fiscal H07 0650 year it is relatively easy to make meaningful comparisons; and as the H07 0660 cost of local government increases, the demand for such comparison also H07 0670 increases. Towns having different fiscal years are difficult to compare. H07 0680 Of all advantages, probably none is more important than H07 0690 the elimination of tax anticipation notes. Borrowing in anticipation H07 0700 of current taxes and other revenues is a routine procedure of the majority H07 0710 of municipalities at all times. It may be by bank loans, sale H07 0720 of notes or warrants, or by the somewhat casual method of issuance and H07 0730 registration of warrants. In any event it is a form of borrowing which H07 0740 could be and should be rendered unnecessary. Its elimination would H07 0750 result in the saving of interest costs, heavy when short-term money rates H07 0760 are high, and in freedom from dependence on credit which is not always H07 0770 available when needed most. This type of borrowing can be reduced H07 0780 to a minimum if quarterly installment payment of taxes is instituted H07 0790 and the first payment placed near the opening of the fiscal year. Any H07 0795 approach H07 0800 toward such a system looks toward saving and security. H07 0810 It should be noted that there are other and equally important reasons H07 0820 for establishing meaningful intergovernmental reporting bases on a uniform H07 0830 fiscal year. Both the federal and state governments commence their H07 0840 fiscal years on July 1. Both units of government contribute increasingly H07 0850 large sums of money to the several local governments in this H07 0860 state as indicated below: @ It has been said that when local H07 0870 government revenues were mostly produced locally from the property H07 0880 tax, the lack of a uniform fiscal year was no great handicap; but with H07 0890 the growth of state and federal fiscal aid, the emphasis on equalization, H07 0900 and the state-local sharing of responsibility for certain important H07 0910 functions, this is no longer true. The haphazard fiscal year calendar H07 0920 is an obstacle to the planning of clear and efficient state-local H07 0930 revenue and expenditure relationships. _DISADVANTAGES._ Although H07 0940 there are many sound reasons for adopting uniform and coordinated fiscal H07 0950 years in Rhode Island, there are also certain difficulties encountered. H07 0960 These involve more the mechanics employed in adjusting to fiscal H07 0970 uniformity than they do actual actual disadvantages to the principle. H07 0980 One problem is a matter of shifting dates; the other, is how to H07 0990 finance the transition. Little can be done about the changing H07 1000 of dates. This is an inherent part of adjusting fiscal calendars. It H07 1010 usually means a confused and disgruntled tax-paying public for a period H07 1020 of time. But cooperation and understanding between local officials H07 1030 and the citizenry help lessen this problem. The other problem H07 1040 is the matter of financing the transition period in the several cities H07 1050 and towns. This will be covered more fully later. It should be kept H07 1060 in mind that the ease or difficulty with which a town or city can H07 1070 convert to the proposed plan is directly dependent upon the financial H07 1080 condition of that town or city. Fortunately, there are no cities or towns H07 1090 in the state, with one or two possible exceptions that are in too H07 1100 difficult a position to finance the proposed change. Sacrifice will H07 1110 have to be made in some cases, but it is to the municipality's advantage H07 1120 to finance the change-over for a short period of time rather than H07 1130 pay interest on tax anticipation notes indefinitely. #ADJUSTING THE H07 1140 FISCAL CALENDARS# The advantages of a uniform fiscal year and well H07 1150 synchronized fiscal and tax collection calendars are sufficiently great H07 1160 for Rhode Island municipalities to exert effort to secure them. The H07 1170 type of program desired can be determined by the nature and extent H07 1180 of the adjustments needed. Two features are immediately evident. First, H07 1190 the present situation is too varied to be systematized by any single H07 1200 formula. Second, the shift to a uniform July 1-June 30 fiscal year H07 1210 will, of itself, improve the tax collection calendars of the great H07 1220 majority of cities and towns. There are at least two problems to consider: H07 1230 one is a matter of adjusting the fiscal calendar; the other H07 1240 is how to finance the adjustments when necessary. The latter matter H07 1250 is considered in detail in a later section. Twelve cities and H07 1260 towns in Rhode Island presently indicate some plans to establish a H07 1270 uniform and/or coordinated fiscal-tax year calendar. Plans vary from H07 1280 the "talking stage" to establishing special committees to accomplish H07 1290 this end. What is important here is that many of the cities and towns H07 1300 recognize the need for improved fiscal practices and are taking the H07 1310 initiative to obtain them. An analysis of the fiscal-tax collection H07 1320 year calendars throughout the state indicates that transition H07 1330 may not be as painful as is commonly thought. However, it must be stressed H07 1340 that much depends upon the financial condition of the individual H07 1350 cities and towns involved. The adjustments needed to establish H07 1360 a uniform and coordinated fiscal-tax collection year calendar throughout H07 1370 Rhode Island, based on a July 1-June 30 year, are shown below. H07 1380 _NO ADJUSTMENT NEEDED._ Six cities and towns are presently on a H07 1390 July 1-June 30 fiscal year and have coordinated their tax collection H07 1400 year with it. No change is required for these towns. These municipalities H07 1410 include: Barrington, Lincoln, Middletown, Newport, North H07 1420 Kingstown, and South Kingstown. _ADJUSTMENT OF FISCAL YEAR._ H07 1430 One town and one city, Coventry and East Providence, require an adjustment H07 1440 of their fiscal year only. This change will automatically adjust H07 1450 their tax collection year calendar so as to make all tax installments H07 1460 due and payable in the fiscal year collectible within that year. H07 1470 _ADJUSTMENT OF TAX COLLECTION YEAR._ Six cities and towns are now H07 1480 on a July 1-June 30 fiscal year and will need only to adjust their H07 1490 tax collection year calendar to establish uniformity. These cities and H07 1500 towns include Bristol, Glocester, Pawtucket, Cumberland, Central H07 1510 Falls, and Woonsocket. _SIMULTANEOUS ADJUSTMENTS._ Two cities H07 1520 to be considered, Providence and Cranston, are an enigma. Both have H07 1530 excellent integration of their fiscal-tax collection year calendars. H07 1540 However, neither of these two cities is on the desired July 1-June H07 1550 30 fiscal year. The adjustment to a uniform and coordinated fiscal H07 1560 period could be accomplished relatively easy for them. In that H07 1570 both cities end their fiscal years on September 30, they could levy taxes H07 1580 for an interim period of nine months, commencing with September H07 1590 30 and ending with June 30. These three installment dates would be: H07 1600 October 26, January 26, and April 25 (Providence) and November H07 1610 15, February 16 and May 15 (Cranston). Both would start their new H07 1620 fiscal year on July 1. Their tax collection calendar could then be: H07 1630 July 25, October 26, January 26, and April 25, (Providence); H07 1640 and August 15, November 15, February 17, and May 15, (Cranston). H07 1650 Under this plan both Cranston and Providence would be on the uniform H07 1660 fiscal year but would still be using the same installment periods. H07 1670 _VARYING ADJUSTMENTS._ The remaining twenty-three towns have fiscal H07 1680 years which end prior to June 30. All of these towns will require H07 1690 adjustments of both their fiscal and tax collection years. Assuming H07 1700 an adjustment to the July 1-June 30 fiscal year, the required adjustment H07 1710 of the tax collection years and the towns involved are shown in Table H07 1720 3. #METHODS OF FINANCING ADJUSTMENTS# Aside from the matter H07 1730 of adjusting the fiscal and tax calendars, there is the problem of financing H07 1740 the adjustment when this is necessary. It should be emphasized H07 1750 strongly that adjustments in fiscal dates or adoption of interim budgets H07 1760 mean financing over and above normal governmental H07 1770 requirements. In many communities there is simply no financial H07 1780 problem; it is only a matter of adjusting accounting methods, careful H07 1790 fiscal planning and management, or some like combination of techniques. H07 1800 In other municipalities the difficulties in overcoming the financial H07 1810 burden have been sufficiently great to dishearten proponents of H07 1820 fiscal year changes. Fortunately, such cases in Rhode Island are more H07 1830 the exception than the rule. As shown earlier in Table 1, H07 1840 the several cities and towns use widely varied fiscal and tax collection H07 1850 calendars. In addition, no two Rhode Island communities are identical H07 1860 in relation to their over-all financial condition. These factors H07 1870 practically insure that no single financing formula is feasible; each H07 1880 situation must be studied and a plan developed that takes into consideration H07 1890 such factors as the effect of the existing and prospective H07 1900 tax calendars, the financial condition of the treasuries, and the length H07 1910 of the transition interval. Suitable plans range from those that are H07 1920 very easy to develop to those that are difficult to formulate and require H07 1930 borrowing ranging from short-term serial notes to long-term bonds. H07 1940 The financial problem, where it exists, usually stems from H07 1950 the adoption of a budget for the transitional or adjustment period. For H07 1960 those communities which have financial difficulties in effecting adjustments, H07 1970 there are a number of alternatives any one of which alone, H07 1980 or in combination with others, would minimize if not even eliminate the H07 1990 problem. H08 0010 #RHODE ISLAND HERITAGE WEEK PROCLAMATION BY JOHN A& NOTTE,JR& H08 0020 GOVERNOR# The theme of Rhode Island Heritage Week for 1961 will H08 0030 be "Independence and Union". It commemorates the 185th anniversary H08 0040 of Rhode Island's Independence when, upon May 4, 1776, the H08 0050 General Assembly, by its action, established the first free republic H08 0060 in the New World. As this year marks the centennial of the H08 0070 beginning of the Civil War, this fact is being commemorated with several H08 0080 exhibits throughout the State, but most of all paying tribute to H08 0090 the first Rhode Island Volunteers who rushed to the defense of the H08 0100 City of Washington, putting at the disposal of President Lincoln H08 0110 the only fully equipped and best trained regiment at this time. H08 0120 On April 30, ceremonies commemorating the departure of these volunteers H08 0130 will take place at 1:00 P&M& at the Dexter Training Grounds H08 0140 in Providence. The Independence Day celebration will be properly H08 0150 observed with a big military and civic parade from West Warwick H08 0160 to the Greene Homestead in Anthony; AND NOW, THEREFORE, DO I, H08 0170 JOHN A& NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE ISLAND AND PROVIDENCE H08 0180 PLANTATIONS, PROCLAIM THE WEEK OF APRIL 29TH TO MAY 7TH, 1961, H08 0190 AS RHODE ISLAND HERITAGE WEEK, advising our citizens that throughout H08 0200 this week many historic houses and beautiful gardens will be open H08 0210 to visitors as well as industrial plants, craft shops, museums and libraries H08 0215 and I H08 0220 earnestly urge all to take advantage of these opportunities H08 0230 to see as many of these places as they can during this outstanding H08 0240 week. IN TESTIMONY WHEREOF, I have hereunto set my hand H08 0250 and caused the seal of the State to be affixed this 21st day of April, H08 0260 in the year of Our Lord, one thousand nine hundred and sixty-one H08 0270 and on Independence, the one hundred and eighty-fifth. Governor H08 0290 #ARMED FORCES DAY PROCLAMATION BY JOHN A& NOTTE, JR& GOVERNOR# H08 0300 The year 1961 marks the fourteenth anniversary of the unification of H08 0310 our Armed Forces under the National Security Act of 1947. H08 0320 National defense, like the continuing search for peace with freedom H08 0330 and justice for all, is "everybody's business". Our investment H08 0340 in this effort, the greatest in our Nation's history, reflects our H08 0350 determination to ensure the peace and the future of freedom. It H08 0360 is a sound investment. As the President has said, "only when our H08 0370 arms are sufficient beyond doubt can we be certain that they will never H08 0380 be employed". Armed Forces Day is the annual report on H08 0390 this investment, a public presentation designed to give our own people, H08 0400 and the people of other lands who stand with us for peace with freedom H08 0410 and justice, the best possible opportunity to see and understand what H08 0420 we have and why we have it. It is the purpose of Armed Forces H08 0430 Day to give Americans an opportunity to honor men of the Armed H08 0440 Forces, those who have made the supreme sacrifice, those who remain H08 0450 to preserve our security. Freedom depends upon them; NOW, THEREFORE, H08 0460 DO I, JOHN A& NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE ISLAND H08 0470 AND PROVIDENCE PLANTATIONS, PROCLAIM SATURDAY, MAY 20th, 1961, H08 0480 AS ARMED FORCES DAY, reminding our citizens that we should rededicate H08 0490 ourselves to our Nation, respecting the uniforms as the guardians H08 0500 of our precious liberty. IN TESTIMONY WHEREOF, I have H08 0510 hereunto set my hand and caused the seal of the State to be affixed H08 0520 this 17th day of May, in the year of Our Lord, one thousand nine hundred H08 0530 and sixty-one, and of Independence, the one hundred and eighty-sixth. H08 0540 Governor H08 0550 #NATIONAL MARITIME DAY PROCLAMATION BY JOHN A& NOTTE, JR& GOVERNOR# H08 0560 The President of the United States, pursuant to a Joint Resolution H08 0570 of Congress, has issued a proclamation each year since 1933 H08 0580 declaring may 22nd to be National Maritime Day. This date in H08 0590 1819 marked the sailing of the S& S& "Savannah" from Savannah, H08 0600 Georgia, for Liverpool. This voyage was the first successful H08 0610 crossing of the Atlantic under steam propulsion. The day is now appropriately H08 0620 set aside to honor the American men and women who have contributed H08 0630 to the success of our merchant marine fleet in peace and war. H08 0640 The Merchant Marine is the "Fourth Arm of Defense", for H08 0650 a strong and effective American Merchant Marine is essential to H08 0660 the economy and security of our Nation. Through trade and travel H08 0670 across the seas the American Merchant Marine is carrying out its H08 0680 historic mission of linking the United States of America with friendly H08 0690 nations across the seas; AND NOW, THEREFORE, DO I, JOHN A& H08 0700 NOTTE, JR&, GOVERNOR OF THE STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS, H08 0710 PROCLAIM MONDAY, MAY 22nd, 1961, AS NATIONAL MARITIME H08 0720 DAY, reminding our citizens that American Merchant ships and American H08 0730 seamen are ready at all times to serve our Nation in the cause H08 0740 of freedom and justice. IN TESTIMONY WHEREOF, I have H08 0750 hereunto set my hand and caused the seal of the State to be affixed H08 0760 this 20th day of April, in the year of Our Lord, one thousand nine H08 0770 hundred and sixty-one, and of Independence, the one hundred and eighty-fifth. H08 0780 Governor H08 0790 #MISS RHODE ISLAND PAGEANT WEEK PROCLAMATION BY JOHN A& NOTTE, JR& H08 0800 GOVERNOR# The Miss Rhode Island Pageant is sponsored by the H08 0810 Rhode Island Junior Chamber of Commerce as a part of the nation-wide H08 0820 search for the typical American girl- a Miss America from Rhode H08 0830 Island. This is an official preliminary contest of the Miss America H08 0840 Pageant held each September in Atlantic City. The ideal girl- H08 0850 possessed of talent, poise, intelligence, personality and beauty H08 0860 of face and figure- is chosen each year to represent Rhode Island. H08 0870 Many hours are given free by the Jaycees to make this and all H08 0880 local pageants outstanding events. Proceeds realized from these pageants H08 0890 are used by the Jaycees to help support their various youth, health, H08 0900 welfare and community betterment activities throughout the state. H08 0910 Miss Sally May Saabye, (Miss Rhode Island 1960) says that H08 0920 within a short time- on June 17th- her reign will come to an H08 0930 end. She hopes that all will support the contestants from our own community H08 0940 by attending our Pageants and the State Pageant June 17; H08 0950 AND NOW, THEREFORE, DO I, JOHN A& NOTTE, JR&, GOVERNOR OF THE STATE H08 0960 OF RHODE ISLAND AND PROVIDENCE PLANTATIONS, PROCLAIM THE WEEK OF H08 0970 JUNE 11TH TO 17TH, 1961, AS MISS RHODE ISLAND PAGEANT WEEK, with deep H08 0980 appreciation to the Jaycees, local and statewide, for the presentation H08 0990 of their beautiful Pageants and the encouragement of all Rhode H08 1000 Island girls to participate. IN TESTIMONY WHEREOF, I have H08 1010 hereunto set my hand and caused the seal of the State to be affixed H08 1020 this 11th day of June, in the year of Our Lord, one thousand nine H08 1030 hundred and sixty-one, and of Independence, the one hundred and eighty-sixth. H08 1040 Governor H08 1050 #UNITED NATIONS DAY PROCLAMATION BY JOHN A& NOTTE, JR&, GOVERNOR# H08 1060 For the purpose of maintaining international peace and promoting H08 1070 the advancement of all people, the United States of America joined H08 1080 in founding the United Nations. The United Nations Charter H08 1090 sets forth standards which, if adhered to, will promote peace and justice H08 1100 throughout the world. It is extremely important for each American H08 1110 to realize that the theme "The United Nations is your business" H08 1120 applies to him personally. The world desperately needs the H08 1130 United Nations. United Nations Day is the birthday of the United H08 1140 Nations, mankind's noblest attempt to establish lasting peace with H08 1150 justice; AND NOW, THEREFORE, DO I, JOHN A& NOTTE, JR&, GOVERNOR H08 1160 OF THE STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS, PROCLAIM H08 1170 TUESDAY, OCTOBER 24TH, 1961, AS UNITED NATIONS DAY, calling upon H08 1175 all H08 1180 our citizens to engage in appropriate observances, demonstrating faith H08 1190 in the United Nations and thereby contributing to a better understanding H08 1200 of the aims of the United Nations throughout the land. H08 1210 IN TESTIMONY WHEREOF, I have hereunto set my hand and caused H08 1220 the seal of the State to be affixed this 5th day of July, in the year H08 1230 of Our Lord, one thousand nine hundred and sixty-one, and of Independence, H08 1240 the one hundred and eighty-sixth. governor H08 1250 #THE STATE BALLET OF RHODE ISLAND WEEK PROCLAMATION BY JOHN A& NOTTE, H08 1260 JR&, GOVERNOR# The ballet originated in Italy about 1450. At H08 1270 that time it was a series of sophisticated social dances whose steps H08 1280 were often combined with other steps devised by the choreographer. Ballet H08 1290 flowered in Italy during the next hundred years, and about 1550 H08 1300 was carried to France when the Italian princess, Catherine de Medicis, H08 1310 married the King of France. The most famous ballet of that time H08 1320 was called Ballet Comique de la Reine (1581). Dances alternated H08 1330 with sung or spoken verses. Ballets were used in opera from its beginning. H08 1340 They were placed either in the middle of the acts or in the intermissions. H08 1350 The State Ballet of Rhode Island, the first H08 1360 incorporated group, was formed for the purpose of extending knowledge H08 1370 of the art of ballet in the Community, to promote interest in ballet H08 1380 performances, to contribute to the cultural life of the State, and to H08 1390 provide opportunity for gifted dance students who, for one reason or H08 1400 another, are unable to pursue a career and to develop others for the professional H08 1410 state; AND NOW, THEREFORE, DO I, JOHN A& NOTTE, JR&, H08 1420 GOVERNOR OF THE STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS, H08 1430 PROCLAIM THE WEEK OF MONDAY, NOVEMBER 13, 1961, AS THE STATE BALLET OF H08 1440 RHODE ISLAND WEEK, requesting all Rhode Islanders to give special H08 1450 attention to this unusual event which should contribute to the cultural H08 1460 life of the State. IN TESTIMONY WHEREOF, I have hereunto H08 1470 set my hand and caused the seal of the State to be affixed this H08 1480 23d day of October, in the year of Our Lord, one thousand nine hundred H08 1490 and sixty-one, and of Independence, the one hundred and eighty-sixth. H08 1500 Governor H08 1510 #PROCLAMATION THANKSGIVING DAY BY JOHN A& NOTTE, JR& GOVERNOR# H08 1520 As another Thanksgiving draws near, let us take time out from the often H08 1530 hectic pace of our lives to try and recapture the feelings that filled H08 1540 the hearts of the Pilgrims on the first Thanksgiving. The H08 1550 Pilgrims gathered to thank the Lord for His benevolence during H08 1560 their first year in the new land. They had been through trying times, H08 1570 but their faith in the Almighty had given them the courage and the strength H08 1580 to meet and overcome the many problems and difficulties that were H08 1590 the price they had to pay for freedom. And as the Pilgrims bowed H08 1600 their heads in humble gratitude, they shared another feeling- the anticipation H08 1610 of what the future held for them and their posterity. They H08 1620 could not guess that from their concepts of liberty and freedom would H08 1630 some day be born a new nation that for years would be the symbol of H08 1640 hope to the oppressed countries of the world. They simply turned to God H08 1650 filled with gratitude and faith. We who are living today may H08 1660 learn a valuable lesson from those who celebrated the first Thanksgiving H08 1670 Day. The Lord has shown time and time again His love for us. H08 1680 We have only to compare the liberty and high standard of living we H08 1690 enjoy in this great country with the oppression and frugality of other H08 1700 nations to realize with humble gratitude that God's Providence has H08 1710 been with us since the very beginning of our country. And yet, accompanying H08 1720 our gratitude is the realization that we are living in a crucial H08 1730 time. With world peace constantly being threatened, most of us regard H08 1740 the future skeptically, and even with fear. It is at this time that H08 1750 we should imitate the Pilgrims by accompanying our prayers of thanks H08 1760 with the conviction that we shall continue to be in dire need for H08 1770 the Lord's protection in the future, if we are to have peace; NOW, H08 1780 THEREFORE, DO I, JOHN A& NOTTE, JR&, GOVERNOR OF THE STATE OF H08 1790 RHODE ISLAND AND PROVIDENCE PLANTATIONS, PROCLAIM THURSDAY, NOVEMBER H08 1800 23RD, 1961, AS THANKSGIVING DAY, And so, let us remember on H08 1810 this day not only to thank the Almighty Who gave hope and courage H08 1820 to the Pilgrims, but also to place our trust in Him that He will continue H08 1830 to protect us in the future as He has in the past. IN H08 1840 TESTIMONY WHEREOF, I have hereunto set my hand and caused the seal H08 1850 of the State to be affixed this 21st day of November, in the year H08 1860 of Our Lord, one thousand nine hundred and sixty-one and of Independence, H08 1870 the one hundred and eighty-sixth. John A& Notte Jr& H08 1880 Governor H09 0010 , That the H09 0030 Act of July 3, 1952 (66 Stat& 328) as amended (42 U&S&C& H09 0040 1952-1958), is further amended to read as follows: _SECTION 1._ H09 0050 In view of the increasing shortage of usable surface and ground water H09 0060 in many parts of the Nation and the importance of finding new sources H09 0070 of supply to meet its present and future water needs, it is the policy H09 0080 of the Congress to provide for the development of practicable low-cost H09 0090 means for the large-scale production of water of a quality suitable H09 0100 for municipal, industrial, agricultural, and other beneficial consumptive H09 0110 uses from saline water, and for studies and research related H09 0120 thereto. As used in this Act, the term 'saline water' includes sea H09 0130 water, brackish water, and other mineralized or chemically charged H09 0140 water, and the term 'United States' extends to and includes the H09 0150 District of Columbia, the Commonwealth of Puerto Rico, and the territories H09 0160 and possessions of the United States. _SEC& 2._ In H09 0170 order to accomplish the purposes of this Act, the Secretary of the Interior H09 0180 shall- _(A)_ conduct, encourage, and promote fundamental H09 0190 scientific research and basic studies to develop the best and most economical H09 0200 processes and methods for converting saline water into water H09 0210 suitable for beneficial consumptive purposes; _(B)_ conduct engineering H09 0220 research and technical development work to determine, by laboratory H09 0230 and pilot plant testing, the results of the research and studies H09 0240 aforesaid in order to develop processes and plant designs to the point H09 0250 where they can be demonstrated on a large and practical scale; _(C)_ H09 0260 recommend to the Congress from time to time authorization for H09 0270 construction and operation, or for participation in the construction H09 0280 and operation, of a demonstration plant for any process which he determines, H09 0290 on the basis of subsections (~a) and (~b) above, has H09 0300 great promise of accomplishing the purposes of this Act, such recommendation H09 0310 to be accompanied by a report on the size, location, and cost H09 0320 of the proposed plant and the engineering and economic details with H09 0330 respect thereto; _(D)_ study methods for the recovery and marketing H09 0340 of commercially valuable byproducts resulting from the conversion H09 0350 of saline water; and _(E)_ undertake economic studies and surveys H09 0360 to determine present and prospective costs of producing water for beneficial H09 0370 consumptive purposes in various parts of the United States H09 0380 by the leading saline water processes as compared with other standard H09 0390 methods. _SEC& 3._ In carrying out his functions under section H09 0400 2 of this Act, the Secretary may- _(A)_ acquire the services of H09 0410 chemists, physicists, engineers, and other personnel by contract or H09 0420 otherwise; _(B)_ enter into contracts with educational institutions, H09 0430 scientific organizations, and industrial and engineering firms; H09 0440 _(C)_ make research and training grants; _(D)_ utilize the H09 0450 facilities of Federal scientific laboratories; _(E)_ establish H09 0460 and operate necessary facilities and test sites at which to carry on the H09 0470 continuous research, testing, development, and programing necessary H09 0480 to effectuate the purposes of this Act; _(F)_ acquire secret H09 0490 processes, H09 0500 technical data, inventions, patent applications, patents, licenses, H09 0510 land and interests in land (including water rights), plants and H09 0520 facilities, and other property or rights by purchase, license, lease, H09 0530 or donation; _(G)_ assemble and maintain pertinent and current H09 0540 scientific literature, both domestic and foreign, and issue bibliographical H09 0550 data with respect thereto; _(H)_ cause on-site inspections H09 0560 to be made of promising projects, domestic and foreign, and, in the H09 0565 case H09 0570 of projects located in the United States, cooperate and participate H09 0580 in their development in instances in which the purposes of this Act H09 0590 will be served thereby; _(I)_ foster and participate in regional, H09 0600 national, and international conferences relating to saline water conversion; H09 0610 _(J)_ coordinate, correlate, and publish information H09 0620 with a view to advancing the development of low-cost saline water conversion H09 0630 projects; and _(K)_ cooperate with other Federal departments H09 0640 and agencies, with State and local departments, agencies, and instrumentalities, H09 0650 and with interested persons, firms, institutions, and H09 0660 organizations. _SEC& 4. (A)_ Research and development activities H09 0670 undertaken by the Secretary shall be coordinated or conducted jointly H09 0680 with the Department of Defense to the end that developments under H09 0690 this Act which are primarily of a civil nature will contribute to the H09 0700 defense of the Nation and that developments which are primarily of H09 0710 a military nature will, to the greatest practicable extent compatible H09 0720 with military and security requirements, be available to advance the H09 0730 purposes of this Act and to strengthen the civil economy of the Nation. H09 0740 The fullest cooperation by and with Atomic Energy Commission, H09 0750 the Department of Health, Education, and Welfare, the Department H09 0760 of State, and other concerned agencies shall also be carried out in the H09 0770 interest of achieving the objectives of this Act. _(B)_ All research H09 0780 within the United States contracted for, sponsored, cosponsored, H09 0790 or authorized under authority of this Act, shall be provided for H09 0800 in such manner that all information, uses, products, processes, patents, H09 0810 and other developments resulting from such research developed by Government H09 0820 expenditure will (with such exceptions and limitations, if H09 0830 any, as the Secretary may find to be necessary in the interest of national H09 0840 defense) be available to the general public. This subsection shall H09 0850 not be so construed as to deprive the owner of any background patent H09 0860 relating thereto of such rights as he may have thereunder. _SEC& H09 0870 5. (A)_ The Secretary may dispose of water and byproducts resulting H09 0880 from his operations under this Act. All moneys received from dispositions H09 0890 under this section shall be paid into the Treasury as miscellaneous H09 0900 receipts) _(B)_ Nothing in the Act shall be construed to H09 0910 alter existing law with respect to the ownership and control of water. H09 0920 _SEC& 6._ The Secretary shall make reports to the President H09 0930 and the Congress at the beginning of each regular session of the action H09 0940 taken or instituted by him under the provisions of this Act and H09 0950 of prospective action during the ensuing year. _SEC& 7._ The Secretary H09 0960 of the Interior may issue rules and regulations to effectuate H09 0970 the purposes of this Act. _SEC& 8._ There are authorized to H09 0980 be appropriated such sums, to remain available until expended, as may H09 0990 be necessary, but not more than $75,000,000 in all, (a) to carry out H09 1000 the provisions of this Act during the fiscal years 1962 to 1967, inclusive; H09 1010 (b) to finance, for not more than two years beyond the end of H09 1020 said period, such grants, contracts, cooperative agreements, and studies H09 1030 as may theretofore have been undertaken pursuant to this Act; and H09 1040 (c) to finance, for not more than three years beyond the end of said H09 1050 period, such activities as are required to correlate, coordinate, and H09 1060 round out the results of studies and research undertaken pursuant to H09 1070 this Act: , That funds available in any one year for H09 1080 research and development may, subject to the approval of the Secretary H09 1090 of State to assure that such activities are consistent with the foreign H09 1100 policy objectives of the United States, be expended in cooperation H09 1110 with public or private agencies in foreign countries in the development H09 1120 of processes useful to the program in the United States: , That every such contract or agreement made with H09 1140 any public or private agency in a foreign country shall contain provisions H09 1150 effective to insure that the results or information developed H09 1160 in connection therewith shall be available without cost to the United H09 1170 States for the use of the United States throughout the world and H09 1180 for the use of the general public within the United States. H09 1190 _SEC& 2._ Section 4 of the joint resolution of September 2, 1958 H09 1200 (72 Stat& 1707; 42 U& S& C& 1958 (~d)), is hereby H09 1210 amended H09 1220 to read: The authority of the Secretary of the Interior under H09 1230 this joint resolution to construct, operate, and maintain demonstration H09 1240 plants shall terminate upon the expiration of twelve years after H09 1250 the date on which this joint resolution is approved. Upon the expiration H09 1260 of a period deemed adequate for demonstration purposes for each H09 1270 plant, but not to exceed such twelve-year period, the Secretary shall H09 1280 proceed as promptly as practicable to dispose of any plants so constructed H09 1290 by sale to the highest bidder, or as may otherwise be directed by H09 1300 Act of Congress. Upon such sale, there shall be returned to any State H09 1310 or public agency which has contributed financial assistance under H09 1320 section 3 of this joint resolution a proper share of the net proceeds H09 1330 of the sale. Approved September 22, 1961. H09 1340 , That the H09 1360 Secretary of the Interior is hereby authorized and directed to make H09 1370 or cause to be made a study covering- _(1)_ the causes of injuries H09 1380 and health hazards in metal and nonmetallic mines (excluding coal H09 1390 and lignite mines); _(2)_ the relative effectiveness of voluntary H09 1400 versus mandatory reporting of accident statistics; _(3)_ the H09 1410 relative contribution to safety of inspection programs embodying- _(A)_ H09 1420 right-of-entry only and _(B)_ right-of-entry plus enforcement H09 1430 authority; _(4)_ the effectiveness of health and safety education H09 1440 and training; _(5)_ the magnitude of effort and costs of each H09 1450 of these possible phases of an effective safety program for metal H09 1460 and nonmetallic mines (excluding coal and lignite mines); and _(6)_ H09 1470 the scope and adequacy of State mine-safety laws applicable to such H09 1480 mines and the enforcement of such laws. _SEC& 2. (A)_ The Secretary H09 1490 of the Interior or any duly authorized representative shall H09 1500 be entitled to admission to, and to require reports from the operator H09 1510 of, any metal or nonmetallic mine which is in a State (excluding any H09 1520 coal or lignite mine), the products of which regularly enter commerce H09 1530 or the operations of which substantially affect commerce, for the purpose H09 1540 of gathering data and information necessary for the study authorized H09 1550 in the first section of this Act. _(B)_ As used in this section- H09 1560 _(1)_ the term "State" includes the Commonwealth of Puerto H09 1570 Rico and any possession of the United States; and _(2)_ H09 1580 the term "commerce" means commerce between any State and any place H09 1590 outside thereof, or between points within the same State but through H09 1600 any place outside thereof. _SEC& 3._ The Secretary of the Interior H09 1610 shall submit a report of his findings, together with recommendations H09 1620 for an effective safety program for metal and nonmetallic mines H09 1630 (excluding coal and lignite mines) based upon such findings, to the H09 1640 Congress not more than two years after the date of enactment of this H09 1650 Act. Approved September 26, 1961. H09 1660 , That the H09 1680 Secretary of the Interior is hereby authorized and directed to establish H09 1690 and maintain a program of stabilization payments to small domestic H09 1700 producers of lead and zinc ores and concentrates in order to stabilize H09 1710 the mining of lead and zinc by small domestic producers on public, H09 1720 Indian, and other lands as provided in this Act. _SEC& 2. (A)_ H09 1730 Subject to the limitations of this Act, the Secretary shall make H09 1740 stabilization payments to small domestic producers upon presentation of H09 1750 evidence satisfactory to him of their status as such producers and of H09 1760 the sale by them of newly mined ores, or concentrates produced therefrom, H09 1770 as provided in this Act. Payments shall be made only with respect H09 1780 to the metal content as determined by assay. _(B)_ Such payments H09 1790 shall be made to small domestic producers of lead as long as the market H09 1800 price for common lead at New York, New York, as determined by H09 1810 the Secretary, is below 14-1/2 cents per pound, and such payments shall H09 1820 be 75 per centum of the difference between 14-1/2 cents per pound H09 1830 and the average market price for the month in which the sale occurred H09 1840 as determined by the Secretary. _(C)_ Such payments shall be made H09 1850 to small domestic producers of zinc as long as the market price for H09 1860 prime western zinc at East Saint Louis, Illinois, as determined by H09 1870 the Secretary, is below 14-1/2 cents per pound, and such payments shall H09 1880 be 55 per centum of the difference between 14-1/2 cents per pound H09 1890 and the average market price for the month in which the sale occurred H09 1900 as determined by the Secretary. _(D)_ The maximum amount of payments H09 1910 which may be made pursuant to this Act on account of sales of newly H09 1920 mined ores or concentrates produced therefrom made during the calendar H09 1930 year 1962 shall not exceed $4,500,000; the maximum amount of such H09 1940 payments which may be made on account of such sales made during the H09 1950 calendar year 1963 shall not exceed $4,500,000; the maximum amount H09 1960 of such payments which may be made on account of such sales made during H09 1970 the calendar year 1964 shall not exceed $4,000,000; and the maximum H09 1980 amount of such payments which may be made on account of such sales H09 1990 made during the calendar year 1965 shall not exceed $3,500,000. H10 0010 In the same period, 431 presentations by members of the staff were made H10 0020 to local, national, and international medical groups. _3. EDUCATION:_ H10 0030 _A._ The education function of the Institute is carried H10 0040 on by the staff in the departments of pathology and its consultants. H10 0050 During fiscal year 1959, six courses were conducted: Forensic Pathology, H10 0060 Application of Histochemistry to Pathology, Pathology of Diseases H10 0070 of Laboratory Animals, Opthalmic Pathology, Pathology of H10 0080 the Oral Regions, and a Cardiovasculatory Pathology Seminar. During H10 0090 fiscal year 1960, seven courses were conducted: Application of H10 0100 Histochemistry to Pathology, Forensic Pathology, Pathology of Diseases H10 0110 of Laboratory Animals, Pathology of the Oral Regions, Opthalmic H10 0120 Pathology, Forensic Sciences Symposium, and Orthopedic Pathology. H10 0130 From 1 July 1960 through 31 January 1961, six courses were H10 0140 conducted: Workshop in Resident Training in Pathology, Pathology H10 0150 of Diseases of Laboratory Animals, Application of Histochemistry H10 0160 of Pathology, Orthopedic Pathology, Forensic Sciences Symposium, H10 0170 and Forensic Pathology. _B._ During fiscal years 1959 and H10 0180 1960, there were 139 military and civilian students who came to the Institute H10 0190 for varying periods of special instruction. _4. RESEARCH:_ H10 0200 The Institute is engaged in an extensive program of medico-military H10 0210 scientific research in both morphological and experimental pathology. H10 0220 Among the specific areas of concentration in which the staff is engaged, H10 0230 are such projects as biological and biochemical studies of the H10 0240 effects of microwaves; study of motor end plates in man and animals; H10 0260 investigation of respiratory diseases of laboratory animals; metabolic H10 0270 responses to reduced oxygen tension; neuropathology of nuclear H10 0280 and cosmic radiation; carcinoma of prostate; evaluation of histochemical H10 0290 techniques; and hip dysplasia in dogs. There has been an H10 0300 increase in cooperative research with other Federal agencies and civilian H10 0310 institutions. During the period from 1 July 1960 through H10 0320 31 January 1961, additional research affiliations were effected with H10 0330 the U& S& Army Medical Research and Development Command to H10 0340 conduct research in procedures for quantitative electron microscopy, and H10 0350 for the study of biophysical and biological studies of the structure H10 0360 and function of ocular tissue. Also, the Defense Atomic Support H10 0370 Agency sponsored a long-range study at this Institute on the response H10 0380 of massive suspension cultures of mammalian cells to acute radiation. H10 0390 Other scientific agencies, both Federal and civilian, supported studies H10 0400 in quantitative electron microscopical approach to microchemistry H10 0410 and microcytochemistry; the investigation of the relationship of H10 0415 diphosphopyridine H10 0420 nucleotide synthesizine enzyme to tumor growth; morphological H10 0430 study and classification of leukemia and lymphoma cases in H10 0440 animals; and the study of structural changes in M& leprae and other H10 0450 mycobacteria. _MEDICAL ILLUSTRATION SERVICE_ _1._ The Medical H10 0460 Illustration Service is responsible for the collection, publication, H10 0470 exhibition, and file of medical illustration material of medico-military H10 0480 importance to the Armed Forces. In addition to maintaining H10 0490 a permanent central file of illustrations of diseases, wounds, and injuries H10 0500 of military importance, it provides facilities for clinical photography, H10 0510 photomicrography, and medical arts, and operates a printing H10 0520 plant, by permission of Congressional Committee, for publication of H10 0530 an "Atlas of Tumor Pathology". It also maintains shops for the H10 0540 design and fabrication of exhibits, training aids and instruments and H10 0550 libraries for the loan of films and teaching lantern slide sets. _2._ H10 0560 During this period, a total of 762 exhibits were presented at 442 H10 0570 medical and scientific meetings. Of these exhibits, 154 were newly H10 0580 constructed. Twenty-nine exhibits received awards. _3._ Visual and H10 0590 operable training aids developed by the Medical Illustration Service, H10 0600 were used in support of Army Medical Service mass casualty exercises. H10 0610 Members of the Medical Illustration Service lectured and H10 0620 conducted demonstrations on the use of training aids to military personnel H10 0630 and various civilian medical organizations. Demonstrations of new H10 0640 and projected training aids were conducted at the Medical Service H10 0650 Instructor's Conference, Brooke Army Medical Center, Texas. _4._ H10 0660 In support of the emphasis placed by the Department of Defense H10 0670 on instruction in emergency medical care, the Medical Illustration H10 0680 Service developed casualty simulation kits and rescue breathing manikins H10 0690 which are being field tested; and overhead projector transparency H10 0700 sets on the subjects of Military Sanitation: First Aid for H10 0710 Soldiers; Bandaging and Splinting; the Emergency Medical Treatment H10 0720 Unit, Phase /1,; and Emergency War Surgery in support H10 0730 of the North Atlantic Treaty Organization (~NATO) Handbook. H10 0740 Fifty lantern slide teaching sets on the subject of "Emergency War H10 0750 Surgery (~NATO)" were assembled and distributed to the Medical H10 0760 Military Services of foreign Governments associated with ~NATO H10 0770 and South-East Asia Treaty Organization. The British and H10 0780 Canadian Liaison Officers, as well as Office of Civil and Defense H10 0790 Mobilization, the American Red Cross, and similar interested organizations H10 0800 were informed from time to time as training aids were developed. H10 0810 _5._ Nine veterinary lantern slide teaching sets were developed H10 0820 and distributed, and lantern slide teaching sets on 21 pathology H10 0830 subjects were added to the loan library of the Medical Illustration H10 0840 Service. Illustrations were prepared for 11 Department of the Army H10 0850 manuals and one Graphic Training Aid. Sixteen lantern slide sets H10 0860 were loaned to the Government of India and eight sets were forwarded H10 0870 to the U&S& Embassy, Managua, Nicaragua for the Educational H10 0880 Exchange Program. The Senate Subcommittee on Reorganization and H10 0890 International Organizations was provided samples of visual aids on H10 0900 first aid and personal health produced by the Medical Illustration H10 0910 Service. _6._ Six fascicles (10,000 copies each) of the "Atlas H10 0920 of Tumor Pathology" were completed during the period of this report. H10 0930 _THE AMERICAN REGISTRY OF PATHOLOGY_ This consists of 25 individual H10 0940 registries, two of which were added during fiscal years 1959-1960 H10 0950 (the Registry of Forensic Pathology and the Testicular Tumor H10 0960 Registry). These registries are sponsored by 18 national medical, H10 0970 dental, and veterinary societies and have as their mission the assembling H10 0980 of selected cases of interest to military medicine and of establishing H10 0990 through the mechanism of follow-up of living patients the natural H10 1000 history of various diseases of military-medical importance. The American H10 1010 Registry of Pathology operates as a cooperative enterprise in H10 1020 medical research and education between the Armed Forces Institute of H10 1030 Pathology and the civilian medical profession on a national and international H10 1040 basis, under such conditions as may be agreed upon between H10 1050 the National Research Council and The Surgeons General of the Army, H10 1060 Navy, and Air Force. The staff utilized the collected material H10 1070 in these registries for numerous lectures to national and international H10 1080 meetings, exhibits, and published studies. During the period of this H10 1090 report, 37,470 new cases were entered into the various registries. H10 1100 These were selected carefully and included not only detailed clinical H10 1110 information but adequate pathology of value for research and educational H10 1120 purposes. In this same period, six new fascicles of the Atlas H10 1130 of Tumor Pathology were published and distributed to medical centers H10 1140 world-wide. There were 54,320 copies of fascicles sold and 642 H10 1150 copies distributed free during this period. Forty-five new Clinico-pathologic H10 1160 Conferences were prepared, bringing the total to 61 available H10 1170 for loan distribution. Nine new teaching Clinico-pathologic Conference H10 1180 sets were prepared, which makes a total of 70 types of teaching H10 1190 sets for loan. During this period, 7,827 teaching sets were distributed H10 1200 on loan. The Clinico-pathologic Conferences have been acknowledged H10 1210 as of great value and in consequent great demand by the small isolated H10 1220 military hospitals. The demand for teaching sets continues unabated H10 1230 since they provide the means for the military physicians to review H10 1240 the pathology of selected disease processes or organ systems for review H10 1250 of basic sciences and correlation of clinical physiological behavior H10 1260 with structural changes. _THE MEDICAL MUSEUM_ In fiscal year 1959, H10 1270 the Medical Museum was moved to Chase Hall, a temporary building H10 1280 on Independence Avenue at Ninth Street, Southwest, and continued H10 1290 to display to the public the achievements of the Armed Forces Medical H10 1300 Services. During the period of this report, 63 panel exhibits H10 1310 depicting the latest developments in medical research were displayed. H10 1320 Of the 375 exhibits (of all types) shown, 161 were new or refurbished. H10 1330 Of the 885 specimens newly mounted or refurbished, 254 were prepared H10 1340 for other agencies. Eighty-five specimens were loaned for study H10 1350 purposes. An exhibit, "Macropathology- An Ancient Art, A new H10 1360 Science", was presented at the annual meeting of the American Medical H10 1370 Association. A three-dimensional exhibit depicting "A H10 1380 Century of Naval Medicine" was formally presented to The Director H10 1390 by George S& Squibb, great-grandson of the founder of E& H10 1400 R& Squibb and Sons, for permanent display in the Museum. H10 1410 Space was provided for short-time guest medical exhibits, and the H10 1420 Museum collected new accessions of microscopes, medical, surgical, and H10 1430 diagnostic instruments, uniform, and similar items of historical medico-military H10 1450 significance. During the period, the laboratory rendered H10 1460 centralized macropathological service to qualified requesters. H10 1470 Specimens were mounted for military installations, governmental agencies, H10 1480 and medical schools. Three hundred five copies of the were distributed. Thirty-five H10 1500 military and civilian students received laboratory training. H10 1510 During fiscal years 1959 and 1960, there were 795,586 visitors to the H10 1520 Museum. During the period from 1 July 1960 through 31 January H10 1540 1961, the Medical Museum was required to move to Temporary Building H10 1550 "~S" on the Mall from Chase Hall. Throughout the period H10 1560 and during the movement operation, the Museum continued its functional H10 1570 support of the Armed Forces Institute of Pathology. #ARMED FORCES H10 1580 MEDICAL PUBLICATION AGENCY# The Armed Forces Medical Publication H10 1590 Agency, established in 1949, has published, since January 1950, H10 1600 the United States Armed Forces Medical Journal as a triservice H10 1605 publication H10 1610 to furnish material of professional interest to Medical Department H10 1620 officers of the three military services. Its supplement, the Medical H10 1630 Technicians Bulletin, supplied similar material to enlisted H10 1640 medical personnel. These publications replaced the U& S& Naval H10 1650 Medical Bulletin, published continuously from 1907 through 1959, as H10 1660 well as the Navy's Hospital Corps Quarterly and the Bulletin of H10 1670 the U& S& Army Medical Department, published from 1922 to 1949. H10 1680 In addition, their establishment made it unnecessary to begin publication H10 1690 of a contemplated Air Force medical bulletin. Estimated annual H10 1700 savings resulting from publication of the Journal and Bulletin H10 1710 on a triservice basis, as compared with the cost of producing separate H10 1720 periodicals for each service, were between $65,000 and $70,000. Additionally, H10 1730 on the many ships at sea and in the smaller naval stations, H10 1740 the availability of the Journal removed the necessity of subscribing H10 1750 to several additional journals of civilian origin over and above the H10 1760 quantity now authorized, in order to provide any reasonably comparable H10 1770 coverage. From 1 July 1958 to 30 June 1960, 24 numbers of H10 1780 the H10 1790 Journal and nine of the Bulletin were published. Each Journal contained H10 1800 articles of professional and clinical interest, and departments H10 1810 devoted to military medical news, reviews of new books, and other features H10 1820 of interest to officers of the medical services. The Council H10 1830 on National Defense of the American Medical Association contributed H10 1840 a brief article to each issue entitled, "This is Your A&M&A&". H10 1850 Beginning with the October 1959 issue of the Journal, H10 1860 the method of production of copy for photo-offset reproduction was H10 1870 changed from varityping to hot typesetting. This resulted in an improved H10 1880 appearance, but was followed by an increase in printing cost that H10 1890 necessitated the institution of major economies to keep within the total H10 1900 of allocated funds. The use of 100 instead of 140 substance paper H10 1910 plus the adoption of side stapling beginning with the May 1960 issue H10 1920 reduced costs sufficiently to allow completion of the fiscal year with H10 1930 nearly $4,000 in unexpended funds. Two special issues were H10 1940 published, one for November 1959 on Space Medicine, the other the H10 1950 Tenth Anniversary issue for January 1960. The February 1960 issue H10 1960 marked the reinstitution of the section entitled, "The Medical Officer H10 1970 Writes". Replacing the discontinued Medical Technicians H10 1975 Bulletin, H10 1980 publication of which was suspended with the November-December H10 1990 1959 issue, a section called "Technical Notes" was inaugurated H10 2000 on a bimonthly basis beginning with the April 1960 issue. Occasional H10 2010 features were published on historical medicine, special reports, bibliography, H10 2020 and "Collector's Items". In May 1960, the Armed H10 2030 Forces Institute of Pathology began a series of articles on the "Medical H10 2040 Museum", and in June, the Institute started contributing H10 2050 a regular monthly "Case for Diagnosis". The Institute also planned H10 2060 to furnish a regular series of articles, beginning in the fall H10 2070 of 1960, on its more significant Scientific Exhibits. The Armed H10 2080 Forces Epidemiological Board agreed to submit each month a report H10 2090 for one of its 12 commissions, so that each commission will report H10 2100 once a year on some phase of its work calculated to be of particular interest H10 2110 and value to medical officers of the Armed Forces. The first H10 2120 report in this continuing series appeared in the September 1960 issue H10 2130 of the Journal. H11 0010 Another recent achievement was the successful development of a method H11 0020 for the complete combustion in a bomb calorimeter of a metal in fluorine H11 0030 when the product is relatively non-volatile. This work gave a heat H11 0040 of formation of aluminum fluoride which closely substantiates a value H11 0050 which had been determined by a less direct method, and raises this H11 0060 property to 15 percent above that accepted a few years ago. Similar measurements H11 0070 are being initiated to resolve a large discrepancy in the H11 0080 heat of formation of another important combustion product, beryllium fluoride. H11 0090 The development and testing of new apparatus to measure H11 0100 other properties is nearing completion. In one of these, an exploding-wire H11 0110 device to study systems thermodynamically up to 6,000 **f and H11 0120 100 atmospheres pressure, a major goal was achieved. The accuracy of H11 0130 measuring the total electrical energy entering an exploding wire during H11 0140 a few microseconds was verified when two independent types of comparison H11 0150 with the heat energy produced had an uncertainty of less than 2 H11 0160 percent. This agreement is considered very good for such short time intervals. H11 0170 The method of calibration employs a fixed resistance element H11 0180 as a calorimeter. The element is inserted H11 0190 in the discharge circuit in place of the exploding wire, H11 0200 and the calorimetric heating of the element is measured with high accuracy. H11 0210 This is used as a reference for comparing the ohmic heating and H11 0220 the electrical energy obtained from the measured current through the H11 0230 element and the measured voltage across the element. A high-speed H11 0240 shutter has been developed in order to permit photographic observation H11 0250 of any portion of the electrical wire explosion. The shutter consists H11 0260 of two parts: a fast-opening part and a fast-closing part. Using H11 0270 Edgerton's method, the fast-closing action is obtained from the H11 0280 blackening of a window by exploding a series of parallel lead wires. H11 0290 The fast-opening of the shutter consists of a piece of aluminum foil H11 0300 (approximately **f) placed directly in front of the camera lens so that H11 0310 no light may pass into the camera. The opening action is obtained H11 0320 when a capacitor, charged to high voltage, is suddenly discharged through H11 0330 the foil. During the discharge the magnetic forces set up by the H11 0340 passage of current cause the edges of the foil to roll inward toward H11 0350 its center line, thus allowing light to pass into the camera. Experiments H11 0360 have shown that the shutter is 75 percent open in about 60-80 microseconds. H11 0370 The shutter aperture may be made larger or smaller by changing H11 0380 the foil area and adjusting the electrical energy input to the foil. H11 0390 _LABORATORY MEASUREMENTS OF INTERSTELLAR RADIO SPECTRA._ Besides H11 0400 the well-known hydrogen line at 21 ~cm wavelength, the spectra of H11 0410 extraterrestrial radio sources may contain sharp lines characteristic H11 0420 of other atoms, ions, and small molecules. The detection and study H11 0430 of such line spectra would add considerably to present information on H11 0440 interstellar gas clouds and, perhaps, planetary atmospheres. Among the H11 0450 most likely producers of detectable radio line spectra are the light H11 0460 diatomic hydrides ~OH and ~CH; somewhat less likely sources H11 0470 are the heavier hydrides ~SH, ~SiH, and ~ScH. Very small H11 0480 concentrations of these hydrides should be detectable; in interstellar H11 0490 gas, concentrations as low as **f molecules/**f may be sufficient, H11 0500 as compared to the **f hydrogen atoms **f required for detection of H11 0510 the 21-~cm line. High sensitivity in radio telescopes is achieved H11 0520 by reducing the bandwidth of the receiver; therefore, only with H11 0530 precise foreknowledge of the line frequencies is an astronomical H11 0540 search for the radio spectra of these molecules feasible. To secure precise H11 0550 measurements of these frequencies, a research program in free radical H11 0560 microwave spectroscopy has been started. Since conventional methods H11 0570 are insensitive at the low frequencies of these molecular transitions, H11 0580 the paramagnetic resonance method is being used instead. This H11 0590 involves the application of a strong magnetic field to the radical vapor, H11 0600 which shifts the low-frequency spectra to a conveniently high microwave H11 0610 range, where they may be measured with optimum sensitivity. H11 0620 The first diatomic hydride investigated by the paramagnetic resonance H11 0630 method was the ~OH radical. Results of this experiment include H11 0640 the frequencies of the two strong spectral lines by which ~OH may H11 0650 be identified in interstellar gas; the frequencies are 1665.32 and H11 0660 1667.36 **f, with an uncertainty of 0.10 **f. Success in observing these H11 0670 spectral lines has so far, apparently, been confined to the laboratory; H11 0680 extraterrestrial observations have yet to be reported. Preparations H11 0690 are being made for similar experiments on ~CH and ~SH H11 0700 radicals. _LOW TEMPERATURE THERMOMETRY._ The Bureau is pursuing H11 0710 an active program to provide a temperature scale and thermometer calibration H11 0720 services in the range 1.5 to 20 **f. The efforts and accomplishments H11 0730 fall into three main categories: absolute thermometry based H11 0740 upon the velocity of sound in helium gas, secondary thermometry involving H11 0750 principally studies of the behavior of germanium resistors, and helium-4 H11 0760 vapor-pressure measurements (see p& 144). _ACOUSTICAL INTERFEROMETER._ H11 0770 An acoustical interferometer has been constructed and H11 0780 used, with helium gas as the thermometric fluid, to measure temperatures H11 0790 near 4.2 and 2.1 **f. Such an interferometer provides a means of absolute H11 0800 temperature measurement, and may be used as an alternative to H11 0810 the gas thermometer. When values of temperature derived with this instrument H11 0820 were compared with the accepted values associated with liquid H11 0830 helium-4 vapor pressures, differences of about 10 and 7 millidegrees respectively H11 0840 were found. This result is preliminary, and work is continuing. H11 0850 _RESISTANCE THERMOMETERS._ Carbon resistors and impurity-doped H11 0860 germanium resistors have been investigated for use as precision secondary H11 0870 thermometers in the liquid helium temperature region. Several H11 0880 germanium resistors have been thermally cycled from 300 to 4.2 **f and H11 0890 their resistances have been found to be reproducible within 1/3 millidegree H11 0900 when temperatures were derived from a vapor pressure thermometer H11 0910 whose tubing is jacketed through most of the liquid helium. Preliminary H11 0920 calibrations of the resistors have been made from 4.21 to 2.16 H11 0930 **f at every 0.1 **f. The estimated standard deviations of the data for H11 0940 two of the resistors were @ 1 millidegree; and for the third resistor, H11 0950 @ 3.3 millidegrees. _VAPOR PRESSURE METHOD._ The reproducibilities H11 0960 of helium vapor-pressure thermometers have been investigated H11 0970 in conjunction with a "constant temperature" liquid helium bath H11 0980 from 4.2 to 1.8 **f. Surface temperature gradients have been found to H11 0990 exist in liquid helium baths contained in 15-and 25-liter metallic storage H11 1000 dewars. The gradient was about one half of a millidegree at 4.2 H11 1010 **f but increased to several millidegrees for bath temperatures slightly H11 1020 greater than the ~|l point. A hydrostatic head correction has H11 1030 been neither necessary nor applicable in the determination of vapor pressures H11 1040 or temperatures for the bulk liquid helium. However, the surface H11 1050 temperature gradient can produce erroneous vapor-pressure measurements H11 1060 for the bulk liquid helium unless precautions are taken to isolate H11 1070 the tube (which passes through the surface to the vapor pressure bulb) H11 1080 from the liquid helium surface. It has also been observed, in helium H11 1090 /2,, that large discrepancies can exist between surface vapor pressures H11 1100 and those pressures measured by a vapor pressure thermometer. This H11 1110 has been attributed to helium film flow in the vapor pressure thermometer. H11 1120 In this case also the design of the thermometer can be modified H11 1130 to reduce the helium film flow. _PRESSURE TRANSDUCER FOR ~PVT H11 1140 MEASUREMENTS._ Precise pressure-volume-temperature measurements on H11 1150 corrosive gases are dependent on a sensitive yet rugged pressure transducer. H11 1160 A prototype which fulfills the requirements was developed and H11 1170 thoroughly tested. The transducer is a null-type instrument and employs H11 1180 a stretched diaphragm, 0.001 in& thick and 1 in& in diameter. H11 1190 A small pressure unbalance displaces the diaphragm and changes the capacitance H11 1200 between the diaphragm and an electrically insulated plate spaced H11 1210 0.001 in& apart (for **f). Spherical concave backing surfaces H11 1220 support the diaphragm when excessive pressures are applied and prevent H11 1230 the stresses within the diaphragm from exceeding the elastic limit. H11 1240 Over a temperature range from 25 to 200 **f and at pressures up to H11 1250 250 ~atm, an overload of 300 ~psi, applied for a period of one day, H11 1260 results in an uncertainty in the pressure of, at most, one millimeter H11 1270 of mercury. _TRANSPORT PROPERTIES OF AIR._ A 6-year study of the H11 1280 transport properties of air at elevated temperatures has been completed. H11 1290 This project was carried out under sponsorship of the Ballistic H11 1300 Missile Division of the Air Research and Development Command, U&S& H11 1310 Air Force, and had as its goal the investigation of the transport H11 1320 by diffusion of the heat energy of chemical binding. A significant H11 1330 effect discovered during the study is the existence of Prandtl H11 1340 numbers reaching values of more than unity in the nitrogen dissociation H11 1350 region. Another effect discovered is the large coefficient of thermal H11 1360 diffusion tending to separate nitrogen from the oxygen when temperature H11 1370 differences straddling the nitrogen dissociation region are present. H11 1380 The results of the study, based on collision integrals computed from H11 1390 the latest critically evaluated data on intermolecular forces in air, H11 1400 will be reported in the form of a table of viscosity, thermal conductivity, H11 1410 thermal diffusion, and diffusion coefficients at temperatures H11 1420 of 1,000 to 10,000 **f and of logarithm of pressure in atmospheres from H11 1430 **f to **f times normal density. _INTERNATIONAL COOPERATIVE ACTIVITIES._ H11 1440 In March, 1961, representatives of the national laboratories H11 1450 of Australia, Canada, The Netherlands, United Kingdom, U&S&S&R&, H11 1460 United States, and West Germany, met at the ~NBS H11 1470 to devise means for reaching international agreement on a temperature H11 1480 scale between 10 and 90 **f. As a first step toward this goal, H11 1490 arrangements were worked out for comparing the scales now in use through H11 1500 circulation of a group of standard platinum resistance thermometers H11 1510 for calibration by each national laboratory. Such a group of thermometers H11 1520 was obtained and calibrated at the ~NBS. These thermometers H11 1530 have now been sent to the United Kingdom for calibration at the National H11 1540 Physical Laboratory. _TEMPERATURE SYMPOSIUM._ During the H11 1550 last week of march 1961, Columbus, Ohio was the site of the Fourth H11 1560 Symposium on Temperature, Its Measurement and Control in Science H11 1570 and Industry. The Symposium, which was jointly sponsored by the H11 1580 American Institute of Physics, the Instrument Society of America, H11 1590 and the National Bureau of Standards, attracted nearly one thousand H11 1600 registrants, including many from abroad. The Bureau contributed H11 1610 to the planning and success of the Symposium through the efforts of Mr& H11 1620 W& A& Wildhack, General Chairman, and Dr& C& M& H11 1630 Herzfeld, Program Chairman. Dr& A& V& Astin, ~NBS H11 1640 Director, opened the 5-day session with introductory remarks, following H11 1650 which a total of twenty-six papers were given throughout the week H11 1660 by ~NBS scientists, from both the Washington and Boulder Laboratories. H11 1670 #2.1.6. ATOMIC PHYSICS# In addition to the basic programs H11 1680 in wavelength standards, spectroscopy, solid state physics, interactions H11 1690 of the free electron and atomic constants which are necessary to H11 1700 provide the foundation for technological progress, the Bureau has strengthened H11 1710 its activities in laboratory astrophysics. The programs in H11 1720 infrared spectroscopy are undergoing reorientation toward wavelength standards H11 1730 in the far infrared, the application of infrared techniques to H11 1740 solid state studies, and increased emphasis on high resolution instrumentation. H11 1750 Two data centers have been established for the collection, H11 1760 indexing, critical evaluation, and dissemination of bibliographies and H11 1770 critical values in the fields of transition probabilities and collision H11 1780 cross sections. _LABORATORY ASTROPHYSICS._ _TRANSITION PROBABILITIES._ H11 1790 Under the sponsorship of the Office of Naval Research H11 1800 and the Advanced Research Projects Agency, a data center was established H11 1810 to gather and index all published information on atomic transition H11 1820 probabilities. An exhaustive survey was made of the literature, H11 1830 and a primary reference file of approximately 600 references was catalogued. H11 1840 Selected bibliographies and tables of available data are now H11 1850 in preparation. A wall-stabilized high-current arc source was H11 1860 constructed and used to study transition probabilities of atomic hydrogen H11 1870 and oxygen. This apparatus will also be used to measure transition H11 1880 probabilities of a large number of other elements. A study of the hydrogen H11 1900 line profiles indicates that a measurement of these profiles can H11 1910 be used to calculate a temperature for the arc plasma that is reliable H11 1920 to about **f percent. A set of tables containing spectral intensities H11 1930 for 39,000 lines of 70 elements, as observed in a copper matrix H11 1940 in a ~d-c arc, was completed and published. Studies of the intensity H11 1950 data indicate that they may be converted to approximate transition H11 1960 probabilities. These data are not of the precision obtainable by H11 1970 the methods previously mentioned, but the vast number of approximate values H11 1980 available will be useful in many areas. _ATOMIC ENERGY LEVELS._ H11 1990 Research continues on the very complex spectra of the rare earth H11 2000 elements. New computer and automation techniques were applied to these H11 2010 spectra with considerable success. H12 0010 _(E)_ In addition to the penalties provided in title 18, United H12 0020 States Code, section 1001, any person guilty of any act, as provided H12 0030 therein, with respect to any matter under this Title, shall forfeit H12 0040 all rights under this Title, and, if payment shall have been made or H12 0050 granted, the Commission shall take such action as may be necessary to H12 0060 recover the same. _(F)_ In connection with any claim decided by H12 0070 the Commission pursuant to this Title in which an award is made, the H12 0080 Commission may, upon the written request of the claimant or any attorney H12 0090 heretofore or hereafter employed by such claimant, determine and H12 0100 apportion the just and reasonable attorney's fees for services rendered H12 0110 with respect to such claim, but the total amount of the fees so determined H12 0120 in any case shall not exceed 10 per centum of the total amount H12 0130 paid pursuant to the award. Written evidence that the claimant and H12 0140 any such attorney have agreed to the amount of the attorney's fees H12 0150 shall be conclusive upon the Commission: , That H12 0160 the total amount of the fees so agreed upon does not exceed 10 per H12 0170 centum of the total amount paid pursuant to the award. Any fee so determined H12 0180 shall be entered as a part of such award, and payment thereof H12 0190 shall be made by the Secretary of the Treasury by deducting the amount H12 0200 thereof from the total amount paid pursuant to the award. Any agreement H12 0210 to the contrary shall be unlawful and void. The Commission is H12 0220 authorized and directed to mail to each claimant in proceedings before H12 0230 the Commission notice of the provisions of this subsection. Whoever, H12 0240 in the United States or elsewhere, pays or offers to pay, or promises H12 0250 to pay, or receives on account of services rendered or to be rendered H12 0260 in connection with any such claim, compensation which, when added H12 0270 to any amount previously paid on account of such services, will exceed H12 0280 the amount of fees so determined by the Commission, shall be guilty H12 0290 of a misdemeanor, and, upon conviction thereof, shall be fined not more H12 0300 than $5,000 or imprisoned not more than twelve months, or both, and H12 0310 if any such payment shall have been made or granted, the Commission H12 0320 shall take such action as may be necessary to recover the same, and, in H12 0330 addition thereto, any such person shall forfeit all rights under this H12 0340 title. _(G)_ The Attorney General shall assign such officers H12 0350 and employees of the Department of Justice as may be necessary to represent H12 0360 the United States as to any claims of the Government of the H12 0370 United States with respect to which the Commission has jurisdiction H12 0380 under this title. Any and all payments required to be made by the H12 0390 Secretary of the Treasury under this title pursuant to any award made H12 0400 by the Commission to the Government of the United States shall be H12 0410 covered into the Treasury to the credit of miscellaneous receipts. H12 0420 _(H)_ The Commission shall notify all claimants of the approval H12 0430 or denial of their claims, stating the reasons and grounds therefor, and H12 0440 if approved, shall notify such claimants of the amount for which such H12 0450 claims are approved. Any claimant whose claim is denied, or is approved H12 0460 for less than the full amount of such claim, shall be entitled, H12 0470 under such regulations as the Commission may prescribe, to a hearing H12 0480 before the Commission, or its duly authorized representatives, with H12 0490 respect to such claim. Upon such hearing, the Commission may affirm, H12 0500 modify, or revise its former action with respect to such claim, including H12 0510 a denial or reduction in the amount theretofore allowed with respect H12 0520 to such claim. The action of the Commission in allowing or denying H12 0530 any claim under this title shall be final and conclusive on all questions H12 0540 of law and fact and not subject to review by the Secretary of H12 0550 State or any other official, department, agency, or establishment of H12 0560 the United States or by any court by mandamus or otherwise. _(I)_ H12 0570 The Commission may in its discretion enter an award with respect H12 0580 to one or more items deemed to have been clearly established in an individual H12 0590 claim while deferring consideration and action on other items H12 0600 of the same claim. _(J)_ The Commission shall comply with the provisons H12 0610 of the Administrative Procedure Act of 1946 except as otherwise H12 0620 specifically provided by this title. _SEC& 5._ The Commission H12 0630 shall, as soon as possible, and in the order of the making of such H12 0640 awards, certify to the Secretary of the Treasury and to the Secretary H12 0650 of State copies of the awards made in favor of the Government H12 0660 of the United States or of nationals of the United States under this H12 0670 Title. The Commission shall certify to the Secretary of State, H12 0680 upon his request, copies of the formal submissions of claims filed pursuant H12 0690 to subsection (~b) of section 4 of this Act for transmission H12 0700 to H12 0710 the foreign government concerned. _SEC& 6._ The Commission shall H12 0720 complete its affairs in connection with settlement of United States-Yugoslav H12 0730 claims arising under the Yugoslav Claims Agreement of H12 0740 1948 not later than December 31, 1954: , That nothing H12 0750 in this provision shall be construed to limit the life of the Commission, H12 0760 or its authority to act on future agreements which may be effected H12 0770 under the provisions of this legislation. _SEC& 7. (A)_ Subject H12 0780 to the limitations hereinafter provided, the Secretary of the Treasury H12 0790 is authorized and directed to pay, as prescribed by section 8 H12 0800 of this Title, an amount not exceeding the principal of each award, plus H12 0810 accrued interests on such awards as bear interest, certified pursuant H12 0820 to section 5 of this Title, in accordance with the award. Such payments, H12 0830 and applications for such payments, shall be made in accordance H12 0840 with such regulations as the Secretary of the Treasury may prescribe. H12 0850 _(B)_ There shall be deducted from the amount of each payment H12 0860 made pursuant to subsection (~c) of section 8, as reimbursement for H12 0870 the H12 0880 expenses incurred by the United States, an amount equal to 5 per H12 0890 centum of such payment. All amounts so deducted shall be covered into H12 0900 the Treasury to the credit of miscellaneous receipts. _(C)_ Payments H12 0910 made pursuant to this Title shall be made only to the person or H12 0920 persons on behalf of whom the award is made, except that- _(1)_ H12 0930 if such person is deceased or is under a legal disability, payment shall H12 0940 be made to his legal representative: , That if the H12 0950 total award is not over $500 and there is no qualified executor or administrator, H12 0960 payment may be made to the person or persons found by the H12 0970 Comptroller General of the United States to be entitled thereto, H12 0980 without the necessity of compliance with the requirements of law with H12 0990 respect to the administration of estates; _(2)_ in the case of H12 1000 a partnership or corporation, the existence of which has been terminated H12 1010 and on behalf of which an award is made, payment shall be made, except H12 1020 as provided in paragraphs (3) and (4), to the person or persons found H12 1030 by the Comptroller General of the United States to be entitled H12 1040 thereto; _(3)_ if a receiver or trustee for any such partnership H12 1050 or corporation has been duly appointed by a court of competent jurisdiction H12 1060 in the United States and has not been discharged prior to the H12 1070 date of payment, payment shall be made to such receiver or trustee H12 1080 in accordance with the order of the court; _(4)_ if a receiver or H12 1090 trustee for any such partnership or corporation, duly appointed by a H12 1100 court of competent jurisdiction in the United States, makes an assignment H12 1110 of the claim, or any part thereof, with respect to which an award H12 1120 is made, or makes an assignment of such award, or any part thereof, H12 1130 payment shall be made to the assignee, as his interest may appear; H12 1135 and _(5)_ H12 1140 in the case of any assignment of an award, or any part thereof, H12 1150 which is made in writing and duly acknowledged and filed, after such H12 1160 award is certified to the Secretary of the Treasury, payment may, in H12 1170 the discretion of the Secretary of the Treasury, be made to the assignee, H12 1180 as his interest may appear. _(D)_ Whenever the Secretary H12 1190 of the Treasury, or the Comptroller General of the United States, H12 1200 as the case may be, shall find that any person is entitled to any such H12 1210 payment, after such payment shall have been received by such person, H12 1220 it shall be an absolute bar to recovery by any other person against H12 1230 the United States, its officers, agents, or employees with respect H12 1240 to such payment. _(E)_ Any person who makes application for any such H12 1250 payment shall be held to have consented to all the provisions of this H12 1260 Title. _(F)_ Nothing in the Title shall be construed as the H12 1270 assumption of any liability by the United States for the payment or H12 1280 satisfaction, in whole or in part, of any claim on behalf of any national H12 1290 of the United States against any foreign government. _SEC& H12 1300 8. (A)_ There are hereby created in the Treasury of the United States H12 1310 (1) a special fund to be known as the Yugoslav Claims Fund; H12 1320 and (2) such other special funds as may, in the discretion of the Secretary H12 1330 of the Treasury, be required each to be a claims fund to be H12 1335 known H12 1340 by the name of the foreign government which has entered into a settlement H12 1350 agreement with the Government of the United States as described H12 1360 in subsection (~a) H12 1370 of section 4 of this Title. There shall be covered H12 1380 into the Treasury to the credit of the proper special fund all funds H12 1390 hereinafter specified. All payments authorized under section 7 of this H12 1400 Title shall be disbursed from the proper fund, as the case may be, H12 1410 and all amounts covered into the Treasury to the credit of the aforesaid H12 1420 funds are hereby permanently appropriated for the making of the H12 1430 payments authorized by section 7 of this Title. _(B)_ The Secretary H12 1440 of the Treasury is authorized and directed to cover into- _(1)_ H12 1450 the Yugoslav Claims Fund the sum of $17,000,000 being the amount H12 1460 paid by the Government of the Federal People's Republic of H12 1470 Yugoslavia pursuant to the Yugoslav Claims Agreement of 1948; _(2)_ H12 1480 a special fund created for that purpose pursuant to subsection H12 1490 (~a) H12 1500 of this section any amounts hereafter paid, in United States dollars, H12 1510 by a foreign government which has entered into a claims settlement H12 1520 agreement with the Government of the United States as described in H12 1530 subsection (~a) H12 1540 of section 4 of this Title. _(C)_ The Secretary H12 1550 of the Treasury is authorized and directed out of the sums covered into H12 1560 any of the funds pursuant to subsection (~b) of this section, H12 1570 and after H12 1580 making the deduction provided for in section 7 (~b) of this H12 1590 Title- H12 1600 _(1)_ to make payments in full of the principal of awards of $1,000 H12 1610 or less, certified pursuant to section 5 of this Title; _(2)_ H12 1620 to make payments of $1,000 on the principal of each award of more H12 1625 than $1,000 in principal amount, certified pursuant H12 1630 to section 5 of this Title; _(3)_ to make additional payment H12 1640 of not to exceed 25 per centum of the unpaid principal of awards in the H12 1650 principal amount of more than $1,000; _(4)_ after completing the H12 1660 payments prescribed by paragraphs (2) and (3) of this subsection, to H12 1670 make payments, from time to time in ratable proportions, on account H12 1680 of the unpaid principal of all awards in the principal amount of more H12 1690 than $1,000, according to the proportions which the unpaid principal of H12 1700 such awards bear to the total amount in the fund available for distribution H12 1710 at the time such payments are made; and _(5)_ after payment H12 1720 has been made of the principal amounts of all such awards, to make H12 1730 pro rata payments on account of accrued interest on such awards as bear H12 1740 interest. _(D)_ The Secretary of the Treasury, upon the concurrence H12 1750 of the Secretary of State, is authorized and directed, out of H12 1760 the sum covered into the Yugoslav Claims Fund pursuant to subsection H12 1770 (~b) H12 1780 of this section, after completing the payments of such funds pursuant H12 1790 to subsection (~c) of this section, to make payment of the balance H12 1810 of any sum remaining in such fund to the Government of the Federal H12 1820 People's Republic of Yugoslavia to the extent required under article H12 1830 1 (~c) of the Yugoslav Claims Agreement of 1948. The Secretary H12 1840 of State shall certify to the Secretary of the Treasury the H12 1850 total cost of adjudication, not borne by the claimants, attributable H12 1860 to the Yugoslav Claims Agreement of 1948. Such certification shall H12 1870 be final and conclusive and shall not be subject to review by any other H12 1880 official or department, agency, or establishment of the United States. H12 1890 _SEC& 9._ There is hereby authorized to be appropriated, H12 1900 out of any money in the Treasury not otherwise appropriated, such sums H12 1910 as may be necessary to enable the Commission to carry out its functions H12 1920 under this Title. H13 0010 _MR& DOOLEY._ Mr& Speaker, for several years now the commuter H13 0020 railroads serving our large metropolitan areas have found it increasingly H13 0030 difficult to render the kind of service our expanding population H13 0040 wants and is entitled to have. The causes of the decline of the commuter H13 0050 railroads are many and complex- high taxes, losses of revenue to H13 0060 Government subsidized highway and air carriers, to name but two. And H13 0070 the solutions to the problems of the commuter lines have been equally H13 0080 varied, ranging all the way from Government ownership to complete H13 0090 discontinuance of this important service. There have been a number H13 0100 of sound plans proposed. But none of these has been implemented. H13 0110 Instead we have stood idly by, watched our commuter railroad service H13 0120 decline, and have failed to offer a helping hand. Though the number H13 0130 of people flowing in and out of our metropolitan areas each day has increased H13 0140 tremendously since World War /2,, total annual rail commutation H13 0150 dropped 124 million from 1947 to 1957. Nowhere has this decline H13 0160 been more painfully evident than in the New York City area. Here the H13 0170 New York Central Railroad, one of the Nation's most important H13 0180 carriers, has alone lost 47.6 percent of its passengers since 1949. H13 0190 At this time of crisis in our Nation's commuter railroads, H13 0200 a new threat to the continued operations of the New York Central has H13 0210 appeared in the form of the Chesapeake + Ohio Railroad's proposal H13 0220 for control of the Baltimore + Ohio railroads. The New York H13 0230 Central has pointed out that this control, if approved by the Interstate H13 0240 Commerce Commission, would give the combined C& + O&-B& H13 0250 + O& Railroad a total of 185 points served in common with the H13 0260 New York Central. Not only is this kind of duplication wasteful, H13 0270 but it gives the combined system the ability to take freight traffic H13 0280 away from the New York Central and other railroads serving the area. H13 0290 The New York Central notes: " The freight traffic H13 0300 most susceptible to raiding by the C& + O&-B& + O& provides H13 0310 the backbone of Central's revenues. These revenues make it H13 0320 possible to provide essential freight and passenger service over the entire H13 0330 New York Central system as well as the New York area commuter H13 0340 and terminal freight services. If these services are to be maintained, H13 0350 the New York Central must have the revenues to make them possible". H13 0360 The New York Central today handles 60 percent of all H13 0370 southbound commuter traffic coming into New York City. This is a H13 0380 $14 million operation involving 3,500 employees who work on commuter H13 0390 traffic exclusively. A blow to this phase of the Central's operations H13 0400 would have serious economic consequences not only to the railroad H13 0410 itself, but to the 40,000 people per day who are provided with efficient, H13 0420 reasonably priced transportation in and out of the city. " H13 0430 There is a workable alternative to this potentially dangerous and harmful H13 0440 C& + O&-B& + O& merger scheme"- The Central H13 0450 has pointed out. " The logic of creating a strong, balanced, H13 0460 competitive two-system railroad service in the East is so obvious H13 0470 that B& + O& was publicly committed to the approach outlined here. H13 0480 Detailed studies of the plan were well underway. Though H13 0490 far from completion, these studies indicated beyond a doubt that savings H13 0500 would result which would be of unprecedented benefit to the railroads H13 0510 concerned, their investors, their customers, their users, and to the H13 0520 public at large. Then, abandoning the studies in the face of H13 0530 their promising outlook for all concerned, B& + O& entered on-again-off-again H13 0540 negotiations with C& + O& which resulted in the present H13 0550 situation. In the light of the facts at hand, however, H13 0560 New York Central intends to pursue the objective of helping to create H13 0570 a healthy two-system eastern railroad structure in the public interest". H13 0580 The Interstate Commerce Commission will commence its H13 0590 deliberations on the proposed C& + O&-B& + O& merger on H13 0600 June 18. Obviously, the Interstate Commerce Commission will not force H13 0610 the New York Central to further curtail its commuter operations H13 0620 by giving undue competitive advantages to the lines that wish to merge. H13 0630 However, there is a more profound consideration to this proposed H13 0640 merger than profit and loss. That is, will it serve the long-range H13 0650 public interest? For the past 40 years Congress has advocated H13 0660 a carefully planned, balanced and competitive railway system. H13 0670 We must ask ourselves which of the two alternatives will help the commuter- H13 0680 the two-way B& + O&-C& + O& merger, or the three-way H13 0690 New York Central-B& + O&-C& + O& merger. Which will H13 0700 serve not only the best interest of the stockholders, but the interests H13 0710 of all the traveling public? H13 0720 _MR& LINDSAY._ Mr& Speaker, I rise today to pay tribute to H13 0730 a great newspaper, the New York Times, on the occasion of a major change H13 0740 in its top executive command. Arthur Hays Sulzberger has H13 0750 been a distinguished publisher of this distinguished newspaper and H13 0760 it is fitting that we take due notice of his major contribution to American H13 0770 journalism on the occasion of his retirement. I am pleased to H13 0780 note that Mr& Sulzberger will continue to serve as chairman of the H13 0790 board of the New York Times. Mr& Sulzberger's successor H13 0800 as publisher is Mr& Orvil E& Dryfoos, who is president of the H13 0810 New York Times Co&, and who has been with the Times since 1942. H13 0820 Mr& Dryfoos' outstanding career as a journalist guarantees that H13 0830 the high standards which have made the Times one of the world's H13 0840 great newspapers will be maintained. I am also pleased to note H13 0850 that Mr& John B& Oakes, a member of the Times staff since 1946, H13 0860 has been appointed as editorial page editor. Mr& Oakes succeeds H13 0870 Charles Merz, editor since 1938, who now becomes editor emeritus. H13 0880 I should like at this time, Mr& Speaker, to pay warm tribute H13 0890 to Arthur Hays Sulzberger and Charles Merz on the occasion of H13 0900 their retirement from distinguished careers in American journalism. H13 0910 My heartiest congratulations go to their successors, Orvil E& H13 0920 Dryfoos and John B& Oakes, who can be counted upon to sustain H13 0930 the illustrious tradition of the New York Times. The people H13 0940 of the 17th District of New York, and I as their Representative H13 0950 in Congress, take great pride in the New York Times as one of the H13 0960 great and authoritative newspapers of the world. H13 0970 _MR& STRATTON._ Mr& Speaker, in my latest newsletter to my constituents H13 0980 I urged the imposition of a naval blockade of Cuba as the H13 0990 only effective method of preventing continued Soviet armaments from H13 1000 coming into the Western Hemisphere in violation of the Monroe Doctrine. H13 1010 Yesterday, I had the privilege of reading a thoughtful article H13 1020 in the U&S& News + World Report of May 8 which discussed this H13 1030 type of action in more detail, including both its advantages and its H13 1040 disadvantages. Under leave to extend my remarks, I include H13 1050 the relevant portion of my newsletter, together with the text of the H13 1060 article from the U&S& News + World Report: "_YOUR CONGRESSMAN, H13 1070 SAMUEL S& STRATTON, REPORTS FROM WASHINGTON, MAY 1, 1961_ H13 1080 Cuban S&S&R&: Whatever may have been the setbacks resulting H13 1090 from the unsuccessful attempt of the Cuban rebels to establish H13 1100 a beachhead on the Castro-held mainland last week, there was at least H13 1110 one positive benefit, and that was the clear-cut revelation to the H13 1120 whole world of the complete conversion of Cuba into a Russian-dominated H13 1130 military base. In fact, one of the major reasons for the H13 1140 failure of the ill-starred expedition appears to have been a lack of full H13 1150 information on the extent to which Cuba has been getting this Russian H13 1160 military equipment. Somehow, the pictures and stories of Soviet H13 1170 ~T-34 tanks on Cuban beaches and Russian Mig jet fighters strafing H13 1180 rebel troops has brought home to all of us the stark, blunt truth H13 1190 of what it means to have a Russian military base 90 miles away from H13 1200 home. Russian tanks and planes in Cuba jeopardize the security of H13 1210 the United States, violate the Monroe Doctrine, and threaten the H13 1220 security of every other Latin American republic. Once the full H13 1230 extent of this Russian military penetration of Cuba was clear, President H13 1240 Kennedy announced we would take whatever action was appropriate H13 1250 to prevent this, even if we had to go it alone. But the Latin American H13 1260 republics who have been rather inclined to drag their feet on H13 1270 taking action against Castro also reacted swiftly last week by finally H13 1280 throwing Cuba off the Inter-American Defense Board. For years H13 1290 the United States had been trying to get these countries to exclude H13 1300 Castro's representative from secret military talks. But it took the H13 1310 pictures of the Migs and the ~T-34 tanks to do the job. There H13 1320 is a new atmosphere of urgency in Washington this week. You can see H13 1330 it, for example, in the extensive efforts President Kennedy has made H13 1340 to enlist solid bipartisan support for his actions toward both Cuba H13 1345 and Laos; efforts, H13 1350 as I see it, which are being directed, by the way, toward H13 1360 support for future actions, not for those already past. What H13 1370 the next move will be only time, of course, will tell. Personally, H13 1380 I think we ought to set up an immediate naval blockade of Cuba. We H13 1390 simply can't tolerate further Russian weapons, including the possibility H13 1400 of long-range nuclear missiles, being located in Cuba. Obviously, H13 1410 we can't stop them from coming in, however, just by talk. A naval H13 1420 blockade would be thoroughly in line with the Monroe Doctrine, would H13 1430 be a relatively simple operation to carry out, and would bring an H13 1440 abrupt end to Soviet penetration of our hemisphere". @ "#[FROM H13 1450 U&S& NEWS + WORLD REPORT, MAY 8, 1961]# _NEXT FOR CUBA: H13 1460 AN ARMS BLOCKADE?_ Look at Castro now- cockier than ever H13 1470 with arms and agents to threaten the Americas. How can the H13 1480 United States act? Blockade is one answer offered by experts. H13 1490 In it they see a way to isolate Cuba, stop infiltration, maybe finish H13 1500 Castro, too. This is the question now facing President H13 1510 Kennedy: How to put a stop to the Soviet buildup in Cuba and to H13 1520 Communist infiltration of this hemisphere? On April 25, the H13 1530 White House reported that a total embargo of remaining U&S& H13 1540 trade with Cuba was being considered. Its aim: To undermine further H13 1550 Cuba's economy. weaken Castro. Another strategy- bolder H13 1560 and tougher- was also attracting notice in Washington: a naval H13 1570 and air blockade to cut Cuba off from the world, destroy Castro. H13 1580 Blockade, in the view of military and civilian experts, could restore H13 1590 teeth to the Monroe Doctrine. It could halt a flood of Communist H13 1600 arms and strategic supplies now reaching Castro. It could stop H13 1610 Cuban re-export of guns and propaganda materials to South America. H13 1620 It would be the most severe reprisal, short of declared war, that the H13 1630 United States could invoke against Castro. It is the strategy H13 1640 of blockade, therefore, that is suddenly at the center of attention H13 1650 of administration officials, Members of Congress, officers in the H13 1660 Pentagon. As a possible course of action, it also is the center of H13 1670 debate and is raising many questions. Among these questions: _WHAT H13 1675 WOULD H13 1680 A CUBA BLOCKADE TAKE?_ Military experts say a tight naval blockade H13 1690 off Cuban ports and at the approaches to Cuban waters would require H13 1700 two naval task forces, each built around an aircraft carrier with H13 1710 a complement of about 100 planes and several destroyers. The H13 1720 Navy, on April 25, announced it is bringing back the carrier H13 1730 from the Mediterranean, increasing to four the number of H13 1740 attack carriers in the vicinity of Cuba. More than 36 other big Navy H13 1750 ships are no less than a day's sailing time away. To round H13 1760 out the blockading force, submarines would be needed- to locate, identify H13 1770 and track approaching vessels. Land-based radar would help with H13 1780 this task. So would radar picket ships. A squadron of Navy jets and H13 1790 another of long-range patrol planes would add support to the carrier H13 1800 task forces. Three requirements go with a blockade: It must H13 1810 be proclaimed; the blockading force must be powerful enough to enforce H13 1820 it; and it must be enforced without discrimination. Once H13 1830 these conditions of international law are met, countries that try to H13 1840 run to blockade do so at their own risk. Blockade runners can be stopped- H13 1850 by gunfire, if necessary- searched and held, at least temporarily. H13 1860 They could be sent to U&S& ports for rulings whether cargo H13 1870 should be confiscated. _WHAT COULD A BLOCKADE ACCOMPLISH?_ Plenty, H13 1880 say the experts. In a broad sense, it would reaffirm the Monroe H13 1890 Doctrine by opposing Communist interference in the Western Hemisphere. H13 1900 It could, by avoiding direct intervention, provide a short-of-war H13 1910 strategy to meet short-of-war infiltration. Primary target H13 1920 would be shipments of tanks, guns, aviation gasoline and ammunition H13 1930 coming from Russia and Czechoslovakia. Shipments of arms from Western H13 1940 countries could similarly be seized as contraband. In a total blockade, H13 1950 action could also be taken against ships bringing in chemicals, H13 1960 oils, textiles, and even foodstuffs. At times, three ships a day from H13 1970 the Soviet bloc are unloading in Cuban ports. H14 0010 From its inception in 1920 with the passage of Public Law 236, 66th H14 0020 Congress, the purpose of the vocational rehabilitation program has been H14 0030 to assist the States, by means of grants-in-aid, to return disabled H14 0040 men and women to productive, gainful employment. The authority for H14 0050 the program was renewed several times until the vocational rehabilitation H14 0060 program was made permanent as Title /5, of the Social Security H14 0070 Act in 1935. Up to this time and for the next eight years, the services H14 0080 provided disabled persons consisted mainly of training, counseling, H14 0090 and placement on a job. Recognizing the limitations of such a program, H14 0100 the 78th Congress in 1943 passed P& L& 113, which broadened H14 0110 the concept of rehabilitation to include the provision of physical H14 0120 restoration services to remove or reduce disabilities, and which revised H14 0130 the financing structure. _RECENT CHANGES._ Despite the successful H14 0140 rehabilitation of over a half million disabled persons in the first H14 0150 eleven years after 1943, the existing program was still seen to be H14 0160 inadequate to cope with the nation's backlog of an estimated two million H14 0170 disabled. To assist the States, therefore, in rehabilitating handicapped H14 0180 individuals, "so that they may prepare for and engage in remunerative H14 0190 employment to the extent of their capabilities", the 83rd H14 0200 Congress enacted the Vocational Rehabilitation Amendments of 1954 H14 0210 (P& L& 565). These amendments to the Vocational Rehabilitation H14 0220 Act were designed to help provide for more specialized rehabilitation H14 0230 facilities, for more sheltered and "half-way" workshops, for H14 0240 greater numbers of adequately trained personnel, for more comprehensive H14 0250 services to individuals (particularly to the homebound and the blind), H14 0260 and for other administrative improvements to increase the program's H14 0270 overall effectiveness. _FINANCIAL ASPECTS._ Under the law as it H14 0280 existed until 1943, the Federal Government made grants to the States H14 0290 on the basis of population, matching State expenditures on a 50-50 H14 0300 basis. Under P& L& 113, 78th Congress, the Federal Government H14 0310 assumed responsibility for 100% of necessary State expenditures H14 0320 in connection with administration and the counseling and placement of H14 0330 the disabled, and for 50% of the necessary costs of providing clients H14 0340 with rehabilitation case services. Throughout these years, the statutory H14 0350 authorization was for such sums as were necessary to carry out H14 0360 the provisions of the Act. The 1954 Amendments completely changed H14 0370 the financing of the vocational rehabilitation program, providing H14 0380 for a three-part grant structure- for (1) basic support; (2) extension H14 0390 and improvement; and (3) research, demonstrations, training and H14 0400 traineeships for vocational rehabilitation- and in addition for H14 0410 short-term training and instruction. The first part of the new structure- H14 0420 that for supporting the basic program of vocational rehabilitation H14 0430 services- is described in this Section. Subsequent sections H14 0440 on grants describe the other categories of the grant structure. H14 0450 The following table shows, for selected years, the authorizations, H14 0460 appropriations, allotment base, Federal grants to States and State H14 0470 matching funds for this part of the grant program: #METHOD OF H14 0480 DISTRIBUTING FUNDS# _DESCRIPTION OF FORMULA._ In order to assist H14 0500 the States in maintaining basic vocational rehabilitation services, Section H14 0510 2 of the amended Act provides that allotments to States for H14 0520 support of such services be based on (1) need, as measured by a State's H14 0530 population, and (2) fiscal capacity, as measured by its per capita H14 0540 income. The Act further provides for a "floor" or minimum allotment, H14 0550 set at the 1954 level, which is called the "base" allotment, H14 0560 and a "ceiling" or maximum allotment, for each State. It stipulates, H14 0570 in addition, that all amounts remaining as a result of imposing H14 0580 the "ceiling", H14 0590 and not used for insuring the "floor", be redistributed H14 0600 to those States still below their maximums. These provisions H14 0610 are designed to reflect the differences in wealth and population among H14 0620 the States, with the objective that a vocationally handicapped person H14 0630 have access to needed services regardless of whether he resides in H14 0640 a State with a low or high per capita income or a sparsely or thickly H14 0650 populated State. The provisions are also designed to avoid disruption H14 0660 in State programs already in operation, which might otherwise result H14 0670 from the allotment of funds on the basis of wealth and population H14 0680 alone. _METHOD OF COMPUTING ALLOTMENTS._ The method used in computing H14 0690 the allotments is specifically set forth in the Act. The term H14 0700 "State" means the several States, the District of Columbia, the H14 0710 Virgin Islands, Guam and Puerto Rico; the term "United States" H14 0720 includes the several States and the District of Columbia, and H14 0730 excludes the Virgin Islands, Guam and Puerto Rico, and, prior H14 0735 to H14 0740 1962, Alaska and Hawaii. The following steps are employed in calculations: H14 0750 _1._ For each State (except Puerto Rico, Guam, the H14 0760 Virgin Islands, and, prior to 1962, Alaska and Hawaii) determine H14 0770 average per capita income based on the last three years. (See , below for per capita income data to be used in this step.) H14 0790 _2._ Determine the average per capita income for the U& S& H14 0800 based on the last three years. (See , below, H14 0810 for per capita income data to be used in this step.) _3._ Determine H14 0820 the ratio of 50% to the average per capita income of the U& S& H14 0830 (Divide 50 by the result obtained in item 2 above.) _4._ Determine H14 0840 for each State (except the Virgin Islands, Guam and Puerto H14 0850 Rico, and, prior to 1962, Alaska and Hawaii) that percentage which H14 0860 bears the same ratio to 50% as the particular State's average per H14 0870 capita income bears to the average per capita income of the U& S&. H14 0880 (Multiply the result obtained in item 3 above by the result obtained H14 0890 for each State in item 1 above.) _5._ Determine the particular H14 0900 State's "allotment percentage". By law this is 75% for H14 0910 the Virgin Islands, Guam and Puerto Rico. (Alaska and Hawaii had H14 0920 fixed allotment percentages in effect prior to fiscal year 1962.) H14 0930 In all other States it is the difference obtained by subtracting H14 0940 from 100 the result obtained in item 4 above; that no H14 0950 State shall have an allotment percentage less than 33-1/3% nor more H14 0960 than 75%. If the resulting difference for the particular State is H14 0970 less or more than these extremes, the State's allotment percentage H14 0980 must be raised or lowered to the appropriate extreme. _6._ Square H14 0990 each State's allotment percentage. _7._ Determine each State's H14 1000 population. (See , below for population data H14 1010 to be used in this step.) _8._ Multiply the population of each H14 1020 State by the square of its allotment percentage. (Multiply result obtained H14 1030 in item 7 above, by result obtained in item 6 above.) _9._ H14 1040 Determine the sum of the products obtained in item 8 above, for all the H14 1050 States. (For each State, make all computations set forth in items H14 1060 1 to 8 above, and then add the results obtained for each State in item H14 1070 8.) _10._ Determine the ratio that the amount being allotted H14 1080 is to the sum of the products for all the States. (Divide the amount H14 1090 being allotted by the result obtained in item 9 above.) _11._ Determine H14 1100 the particular State's unadjusted allotment for the particular H14 1110 fiscal year. (Multiply the State product in item 8 above by the H14 1120 result obtained in item 10 above.) _12._ Determine if the particular H14 1130 State's unadjusted allotment (result obtained in item 11 above) H14 1140 is greater than its maximum allotment, and if so lower its unadjusted H14 1150 allotment to its maximum allotment. (Each State's unadjusted allotment H14 1160 for any fiscal year, which exceeds its minimum allotment described H14 1170 in item 13 below by a percentage greater than one and one-half times H14 1180 the percentage by which the sum being allotted exceeds $23,000,000, H14 1190 must be reduced by the amount of the excess.) _13._ Determine if H14 1200 the particular State's unadjusted allotment (result obtained in item H14 1210 11 above) is less than its minimum (base) allotment, and if so raise H14 1215 its unadjusted H14 1220 allotment to its minimum allotment. Regardless of its unadjusted H14 1230 allotment, each State is guaranteed by law a minimum allotment H14 1240 each year equal to the allotment which it received in fiscal year 1954- H14 1250 increased by a uniform percentage of 5.4865771 which brings total H14 1260 1954 allotments to all States up to $23,000,000. _14._ The funds H14 1270 recouped by reductions in item 12 above are used: first, to increase H14 1280 the unadjusted allotments to the specified minimum in those States H14 1290 where the unadjusted allotment is less than the minimum allotment (item H14 1300 13 above); and second, to increase uniformly the allotments to those H14 1310 States whose allotments are below their maximums, with adjustments H14 1320 to prevent the allotment of any State from thereby exceeding its maximum. H14 1330 _ADDITIONAL NOTE ON ALLOTMENTS._ For the States which maintain H14 1340 two separate agencies- one for the vocational rehabilitation of H14 1350 the blind, and one for the rehabilitation of persons other than the H14 1360 blind- the Act specifies that their minimum (base) allotment shall H14 1370 be divided between the two agencies in the same proportion as it was divided H14 1380 in fiscal year 1954. Funds allotted in addition to their minimum H14 1390 allotment are apportioned to the two agencies as they may determine. H14 1400 #MATCHING REQUIREMENTS# _EXPLANATION OF MATCHING FORMULA._ As H14 1410 is the case with the allotment provisions for support of vocational H14 1420 rehabilitation services, the matching requirements are also based on H14 1430 a statutory formula. Prior to 1960, in order to provide matching for H14 1440 the minimum (base) allotment, State funds had to equal 1954 State funds. H14 1450 Prior to and since 1960 the rest of the support allotment is matched H14 1460 at rates related to the fiscal capacity of the State, with a pivot H14 1470 of 40% State (or 60% Federal) participation in total program H14 1480 costs. The percentage of Federal participation in such costs for any H14 1490 State is referred to in the law as that State's "Federal share". H14 1500 For purposes of this explanation, this percentage is referred to H14 1510 as the States "unadjusted Federal share". Beginning in 1960, the H14 1520 matching requirements for the base allotment are being adjusted (upward H14 1530 or downward, as required) 25% a year, so that by 1963 the entire H14 1540 support allotment will be matched on the basis of a 40% pivot State H14 1550 share, with maximum and minimum State shares of 50% and 30%, respectively. H14 1560 The pre-1960 rate of Federal participation with respect H14 1570 to any State's base allotment, as well as the adjusted rate in effect H14 1580 during the 1960-1962 period, is designated by the statute as that H14 1590 State's "adjusted Federal Share". The provisions for determining H14 1600 a State's unadjusted Federal share are designed to reflect the H14 1610 varying financial resources among the States. The purpose of the adjusted H14 1620 Federal share relating to the base allotment and of the transition H14 1625 provisions H14 1630 for reaching the unadjusted Federal share is to prevent H14 1640 dislocations from abrupt changes in matching rates. _METHOD OF COMPUTING H14 1650 FEDERAL SHARES._ The method used for computing the respective H14 1660 Federal and State shares in total program costs is specifically set H14 1670 forth in the Act. The term "State" means the several States, H14 1680 the District of Columbia, the Virgin Islands, Guam and Puerto Rico; H14 1690 the term "United States" includes the several States and H14 1700 the District of Columbia and excludes the Virgin Islands, Guam H14 1710 and Puerto Rico, and, prior to 1962, Alaska and Hawaii. The following H14 1720 steps are employed in the calculations: _1._ For each State H14 1730 (except the Virgin Islands, Guam, Puerto Rico, and, prior to 1962, H14 1740 Alaska and Hawaii), determine the average per capita income for H14 1750 the last three years. (the same amount used in item 1 under , above.) _2._ Determine the average H14 1770 per capita income for the United States for the last three years. (The H14 1780 same amount used in item 2 under , H14 1790 above.) _3._ Determine the ratio of 40% to the average per H14 1800 capita income of the United States. (Divide 40 by the amount used H14 1810 in item 2 above.) _4._ Determine for each State (except the Virgin H14 1820 Islands, Guam, Puerto Rico, and, prior to 1962, Alaska and hawaii), H14 1830 that percentage which bears the same ration to 40% as the particular H14 1840 State's average per capita income bears to the average per H14 1850 capita income of the United States. (Multiply the result obtained H14 1860 in item 3 above by the amount used for each State in item 1 above.) _5._ H14 1870 Determine the particular State's "Federal Share". By H14 1880 law this is 70% for the Virgin Islands, Guam and Puerto Rico. H14 1890 (Alaska and Hawaii had fixed Federal share percentages in effect prior H14 1900 to fiscal year 1962.) In all other States it is the difference H14 1910 obtained by subtracting from 100 the result obtained in item 4 H14 1915 above; H14 1920 that no State shall have a Federal share less than H14 1930 50% nor more than 70%. If the resulting difference for the particular H14 1940 State is less or more than these extremes, the State's Federal H14 1950 share must be raised or lowered to the appropriate extreme. H15 0010 At the entrance side of the shelter, each roof beam is rested H15 0020 on the inside 4 inches of the block wall. The outside 4-inch space is H15 0030 filled by mortaring blocks on edge. The wooden bracing between the roof H15 0040 beams is placed flush with the inside of the wall. Mortar is poured H15 0050 between this bracing and the 4-inch blocks on edge to complete the H15 0060 wall thickness for radiation shielding. (For details see inset, fig& H15 0070 5.) The first one or two roof boards (marked "~E" in H15 0080 fig& 6) are slipped into place across the roof beams, from outside H15 0090 the shelter. These boards are nailed to the roof beams by reaching up H15 0100 through the open space between the beams, from inside the shelter. Concrete H15 0110 blocks are passed between the beams and put on the boards. The H15 0120 roof blocks are in two layers and are not mortared together. H15 0130 Work on the roof continues in this way. The last roof boards are covered H15 0140 with blocks from outside the shelter. When the roof blocks H15 0150 are all in place, the final rows of wall blocks are mortared into position. H15 0160 The structure is complete. (See fig& 7.) Building plans are H15 0170 on page 21. Solid concrete blocks, relatively heavy and dense, H15 0180 are used for this shelter. These blocks are sold in various sizes H15 0190 so it seldom is necessary to cut a block to fit. Solid blocks H15 0200 are recommended because hollow blocks would have to be filled with concrete H15 0210 to give effective protection. Bricks are an alternative. H15 0220 If they are used, the walls and roof should be 10 inches thick to give H15 0230 the same protection as the 8-inch solid concrete blocks. The H15 0240 illustrations in fig& 8 show how to lay a concrete block wall. More H15 0250 detailed instructions may be obtained from your local building supply H15 0260 houses and craftsmen. Other sources of information include the National H15 0270 Concrete Masonry Association, 38 South Dearborn Street, H15 0280 Chicago, Ill&, the Portland Cement Association, 33 West Grand H15 0290 Avenue, Chicago, Ill&, and the Structural Clay Products Association, H15 0300 Washington, D&C&. _ABOVEGROUND DOUBLE-WALL SHELTER_ H15 0310 An outdoor, aboveground fallout shelter also may be built with concrete H15 0320 blocks. (See fig& 9, double-wall shelter.) Most people would H15 0330 have to hire a contractor to build this shelter. Plans are on pages H15 0340 22 and 23. This shelter could be built in regions where water H15 0350 or rock is close to the surface, making it impractical to build an underground H15 0360 shelter. Two walls of concrete blocks are constructed H15 0370 at least 20 inches apart. The space between them is filled with pit-run H15 0380 gravel or earth. The walls are held together with metal ties placed H15 0390 in the wet mortar as the walls are built. The roof shown here H15 0400 (fig& 9) is a 6-inch slab of reinforced concrete, covered with at H15 0410 least 20 inches of pit-run gravel. An alternate roof, perhaps more H15 0420 within do-it-yourself reach, could be constructed of heavy wooden roof H15 0430 beams, overlaid with boards and waterproofing. It would have to be covered H15 0440 with at least 28 inches of pit-run gravel. The materials H15 0450 for a double-wall shelter would cost about $700. Contractors' charges H15 0460 would be additional. The shelter would provide almost absolute fallout H15 0470 protection. _PRE-SHAPED METAL SHELTER_ Pre-shaped corrugated H15 0480 metal sections or pre-cast concrete can be used for shelters either H15 0490 above or below ground. These are particularly suitable for regions where H15 0500 water or rock is close to the surface. They form effective fallout H15 0510 shelters when mounded over with earth, as shown in figure 10. H15 0520 Materials for this shelter would cost about $700. A contractor probably H15 0530 would be required to help build it. His charges would be added to H15 0540 the cost of materials. This shelter, as shown on page 24, would provide H15 0550 almost absolute protection from fallout radiation. An alternate H15 0560 hatchway entrance, shown on page 25, would reduce the cost of materials H15 0570 $50 to $100. The National Lumber Manufacturers Association, H15 0580 Washington, D& C&, is developing plans to utilize specially H15 0590 treated lumber for underground shelter construction. The Structural H15 0600 Clay Products Institute, Washington, D&C&, is working to develop H15 0610 brick and clay products suitable for shelter construction. _UNDERGROUND H15 0620 CONCRETE SHELTER_ An underground reinforced concrete shelter H15 0630 can be built by a contractor for about $1,000 to $1,500, depending H15 0640 on the type of entrance. The shelter shown would provide almost absolute H15 0650 fallout protection. The illustration (fig& 11) shows this H15 0660 shelter with the roof at ground level and mounded over. The same shelter H15 0670 could be built into an embankment or below ground level. Plans H15 0680 for the shelter, with either a stairway or hatchway entrance, are shown H15 0690 on pages 26 and 27. Another type of shelter which gives excellent H15 0700 fallout protection can be built as an added room to the basement H15 0710 of a home under construction. It would add about $500 to the total H15 0720 cost of the home. The shelter illustrated in figure 12 is based on such H15 0730 a room built in a new home in the Washington, D&C& area in the H15 0740 Spring of 1959. {IMPORTANT CONSIDERATIONS} common H15 0750 to each type of shelter are: _1._ Arrangement of the entrance. H15 0760 _2._ Ventilation. _3._ Radio reception. _4._ Lighting. H15 0770 {THE ENTRANCE} must have at least one right-angle turn. H15 0780 Radiation scatters somewhat like light. Some will go around a corner. H15 0790 The rest continues in a straight line. Therefore, sharp turns H15 0800 in a shelter entrance will reduce radiation intensity inside the shelter. H15 0810 {VENTILATION} is provided in a concrete block basement H15 0820 shelter by vents in the wall and by the open entrance. A blower H15 0830 may be installed to increase comfort. A blower is essential H15 0840 for the double-wall shelter and for the underground shelters. It should H15 0850 provide not less than 5 cubic feet per minute of air per person. Vent H15 0860 pipes also are necessary (as shown in figs& 9, 10, and 11), but H15 0870 filters are not. {RADIO RECEPTION} is cut down by the H15 0880 shielding necessary to keep out radiation. As soon as the shelter is H15 0890 completed a radio reception check must be made. It probably will be H15 0900 necessary to install an outside antenna, particularly to receive ~CONELRAD H15 0910 broadcasts. {LIGHTING} is an important H15 0920 consideration. Continuous low-level lighting may be provided in the H15 0930 shelter by means of a 4-cell hot-shot battery to which is wired a 150-milliampere H15 0940 flashlight-type bulb. Tests have shown that such a device, H15 0950 with a fresh battery, will furnish light continuously for at least H15 0960 10 days. With a spare battery, a source of light for 2 weeks or more H15 0970 would be assured. A flashlight or electric lantern also should be available H15 0980 for those periods when a brighter light is needed. There should H15 0990 be a regular electrical outlet in the shelter as power may continue H15 1000 in many areas. {OTHER CONSIDERATIONS}.- If there H15 1010 are outside windows in the basement corner where you build a shelter, H15 1020 they should be shielded as shown in the Appendix, page 29. Other basement H15 1030 windows should be blocked when an emergency threatens. Basement H15 1040 walls that project above the ground should be shielded as shown in the H15 1050 Appendix, page 29. In these shelters the entrance should be H15 1060 not more than 2 feet wide. Bunks, or materials to build them, may have H15 1070 to be put inside the enclosure before the shelter walls are completed. H15 1080 The basement or belowground shelters also will serve for tornado H15 1090 or hurricane protection. #/3,. LIVING IN A SHELTER# @ H15 1100 The H15 1110 radioactivity of fallout decays rapidly at first. . H15 1150 Therefore, civil defense instructions received over ~CONELRAD H15 1160 or by other means should be followed. A battery-powered H15 1170 radio is essential. Radiation instruments suitable for home use are H15 1180 available, and would be of value in locating that portion of the home H15 1190 which offers the best protection against fallout radiation. There is H15 1200 a possibility that battery-powered radios with built-in radiation meters H15 1210 may become available. One instrument thus would serve both purposes. H15 1220 Your local civil defense will gather its own information and H15 1230 will receive broad information from State and Federal sources. It H15 1240 will tell you as soon as possible: How long to stay in your H15 1250 shelter. How soon you may go outdoors. How long you H15 1260 may stay outside. You should be prepared to stay in your shelter H15 1270 full time for at least several days and to make it your home for 14 H15 1280 days or longer. A checklist in the Appendix, (page 30) tells what is H15 1290 needed. Families with children will have particular problems. They H15 1300 should provide for simple recreation. There should be a task H15 1310 for everyone and these tasks should be rotated. Part of the family should H15 1320 be sleeping while the rest is awake. To break the monotony H15 1330 it may be necessary to invent tasks that will keep the family busy. H15 1340 Records such as diaries can be kept. The survival of the family H15 1350 will depend largely on information received by radio. A record should H15 1360 be kept of the information and instructions, including the time and H15 1370 date of broadcast. Family rationing probably will be necessary. H15 1380 Blowers should be operated periodically on a regular schedule. H15 1390 There will come a time in a basement shelter when the radiation H15 1400 has decayed enough to allow use of the whole basement. However, as H15 1410 much time as possible should be spent within the shelter to hold radiation H15 1420 exposure to a minimum. The housekeeping problems of living H15 1430 in a shelter will begin as soon as the shelter is occupied. Food, medical H15 1440 supplies, utensils, and equipment, if not already stored in the H15 1450 shelter, must be quickly gathered up and carried into it. After H15 1460 the family has settled in the shelter, the housekeeping rules should H15 1470 be spelled out by the adult in charge. Sanitation in the confines H15 1480 of the family shelter will require much thought and planning. H15 1490 Provision for emergency toilet facilities and disposal of human H15 1500 wastes will be an unfamiliar problem. A covered container such as a kitchen H15 1510 garbage pail might do as a toilet. A 10-gallon garbage can, with H15 1520 a tightly fitting cover, could be used to keep the wastes until it H15 1530 is safe to leave the shelter. Water rationing will be difficult H15 1540 and should be planned carefully. A portable electric heater H15 1550 is advisable for shelters in cold climates. It would take the chill from H15 1560 the shelter in the beginning. Even if the electric power fails after H15 1570 an attack, any time that the heater has been used will make the shelter H15 1580 that much more comfortable. Body heat in the close quarters will H15 1590 help keep up the temperature. Warm clothing and bedding, of course, H15 1600 are essential. Open-flame heating or cooking should be avoided. H15 1610 A flame would use up air. Some families already have held H15 1620 weekend rehearsals in their home shelters to learn the problems and to H15 1630 determine for themselves what supplies they would need. #/4,. IF H15 1640 AN ATTACK FINDS YOU WITHOUT A PREPARED SHELTER# @ Few areas, if any, H15 1650 are as good as prepared shelters but they are worth knowing about. H15 1660 A family dwelling without a basement provides some natural shielding H15 1670 from fallout radiation. On the ground floor the radiation would H15 1680 be about half what it is outside. The best protection would be on H15 1690 the ground floor in the central part of the house. A belowground H15 1700 basement can cut the fallout radiation to one-tenth of the outside H15 1710 level. The safest place is the basement corner least exposed to windows H15 1720 and deepest below ground. If there is time after the warning, H15 1730 the basement shielding could be improved substantially by blocking H15 1740 windows with bricks, dirt, books, magazines, or other heavy material. H15 1750 #/5,. SHELTER IN APARTMENT BUILDINGS# @ Large apartment buildings H15 1760 of masonry or concrete provide better natural shelter than the usual H15 1770 family dwellings. In general, such apartments afford more protection H15 1780 than smaller buildings because their walls are thick and there is H15 1790 more space. The central area of the ground floor of a heavily H15 1800 constructed apartment building, with concrete floors, should provide H15 1810 more fallout protection than the ordinary basement of a family dwelling. H15 1820 The basement of such an apartment building may provide as much natural H15 1830 protection as the specially constructed concrete block shelter recommended H15 1840 for the basement of a family dwelling. The Federal H15 1850 Government is aiding local governments in several places to survey residential, H15 1860 commercial and industrial buildings to determine what fallout H15 1870 protection they would provide, and for how many people. The H15 1880 problem for the city apartment dweller is primarily to plan the use H15 1890 of existing space. Such planning will require the cooperation of other H15 1900 occupants and of the apartment management. H16 0010 A former du Pont official became a General Motors vice president H16 0020 and set about maximizing du Pont's share of the General Motors H16 0030 market. Lines of communications were established between the two H16 0040 companies and several du Pont products were actively promoted. Within H16 0050 a few years various du Pont manufactured items were filling the entire H16 0060 requirements of from four to seven of General Motors' eight operating H16 0070 divisions. The Fisher Body division, long controlled by the H16 0080 Fisher brothers under a voting trust even though General Motors owned H16 0090 a majority of its stock, followed an independent course for many years, H16 0100 but by 1947 and 1948 "resistance had collapsed" and its purchases H16 0110 from du Pont "compared favorably" with purchases by other General H16 0120 Motors divisions. Competitors came to receive higher percentage H16 0130 of General Motors business in later years, but it is "likely" H16 0140 that this trend stemmed "at least in part" from the needs of General H16 0150 Motors outstripping du Pont's capacity. " The fact H16 0160 that sticks out in this voluminous record is that the bulk of du Pont's H16 0170 production has always supplied the largest part of the requirements H16 0180 of the one customer in the automobile industry connected to du Pont H16 0190 by a stock interest. The inference is overwhelming that du Pont's H16 0200 commanding position was promoted by its stock interest and was not gained H16 0210 solely on competitive merit". 353 U& S&, at 605. H16 0220 This Court agreed with the trial court "that considerations of price, H16 0230 quality and service were not overlooked by either du Pont or General H16 0240 Motors". 353 U& S&, at 606. However, it determined that H16 0250 neither this factor, nor "the fact that all concerned in high executive H16 0260 posts in both companies acted honorably and fairly, each in the H16 0270 honest conviction that his actions were in the best interests of his own H16 0280 company and without any design to overreach anyone, including du Pont's H16 0290 competitors", 353 U& S&, at 607, outweighed the Government's H16 0300 claim for relief. This claim, as submitted to the District H16 0310 Court and dismissed by it, 126 F&Supp&235, alleged violation H16 0320 not only of @ 7 of the Clayton Act, but also of @ @ 1 and 2 of H16 0330 the Sherman Act. The latter provisions proscribe any contract, combination, H16 0340 or conspiracy in restraint of interstate or foreign trade, and H16 0350 monopolization of, or attempts, combinations, or conspiracies to monopolize, H16 0360 such trade. However, this Court put to one side without consideration H16 0370 the Government's appeal from the dismissal of its Sherman H16 0380 Act allegations. It rested its decision solely on @ 7, which reads H16 0390 in pertinent part: " [N]o corporation engaged in commerce H16 0400 shall acquire, directly or indirectly, the whole or any part of H16 0410 the stock or other share capital of another corporation engaged also in H16 0420 commerce, where the effect of such acquisition may be to substantially H16 0430 lessen competition between the corporation whose stock is so acquired H16 0440 and the corporation making the acquisition, or to restrain such commerce H16 0450 in any section or community, or tend to create a monopoly of any H16 0460 line of commerce. @ This section shall not apply to corporations H16 0470 purchasing such stock solely for investment and not using the same H16 0480 by voting or otherwise to bring about, or in attempting to bring about, H16 0490 the substantial lessening of competition **h". The purpose H16 0500 of this provision was thus explained in the Court's opinion: H16 0510 " Section 7 is designed to arrest in its incipiency not only H16 0520 the substantial lessening of competition from the acquisition by one corporation H16 0530 of the whole or any part of the stock of a competing corporation, H16 0540 but also to arrest in their incipiency restraints or monopolies H16 0550 in a relevant market which, as a reasonable probability, appear at the H16 0570 time of suit likely to result from the acquisition by one corporation H16 0580 of all or any part of the stock of any other corporation. The section H16 0590 is violated whether or not actual restraints or monopolies, or the substantial H16 0600 lessening of competition, have occurred or are intended **h". H16 0610 353 U& S&, at 589. Thus, a finding of conspiracy to H16 0620 restrain trade or attempt to monopolize was excluded from the Court's H16 0630 decision. Indeed, as already noted, the Court proceeded on the assumption H16 0640 that the executives involved in the dealings between du Pont H16 0650 and General Motors acted "honorably and fairly" and exercised H16 0660 their business judgment only to serve what they deemed the best interests H16 0670 of their own companies. This, however, did not bar finding that du H16 0680 Pont had become pre-eminent as a supplier of automotive fabrics and H16 0690 finishes to General Motors; that these products constituted a "line H16 0700 of commerce" within the meaning of the Clayton Act; that General H16 0710 Motors' share of the market for these products was substantial; H16 0720 and that competition for this share of the market was endangered H16 0730 by the financial relationship between the two concerns: " The H16 0740 statutory policy of fostering free competition is obviously furthered H16 0750 when no supplier has an advantage over his competitors from an acquisition H16 0760 of his customer's stock likely to have the effects condemned H16 0770 by the statute. We repeat, that the test of a violation of @ 7 is H16 0780 whether, at the time of suit, there is a reasonable probability that H16 0790 the acquisition is likely to result in the condemned restraints. The H16 0800 conclusion upon this record is inescapable that such likelihood was proved H16 0810 as to this acquisition **h". 353 U& S&, at 607. On H16 0820 the basis of the findings which led to this conclusion, the Court remanded H16 0830 the case to the District Court to determine the appropriate H16 0840 relief. The sole guidance given the Court for discharging the task committed H16 0850 to it was this: " The judgment must therefore be reversed H16 0860 and the cause remanded to the District Court for a determination, H16 0870 after further hearing, of the equitable relief necessary and appropriate H16 0880 in the public interest to eliminate the effects of the acquisition H16 0890 offensive to the statute. The District Courts, in the framing H16 0900 of equitable decrees, are clothed 'with large discretion to model H16 0910 their judgments to fit the exigencies of the particular case'. H16 0930 v& 332 U& S& 392, H16 0940 400-401". 353 U& S&, at 607-608. This brings us to the H16 0950 course of the proceedings in the District Court. #/2,.# This H16 0960 Court's judgment was filed in the District Court on July 18, H16 0970 1957. The first pretrial conference- held to appoint H16 0980 to represent the interest of the stockholders of du Pont and General H16 0990 Motors and to consider the procedure to be followed in the subsequent H16 1000 hearings- took place on September 25, 1957. At the outset, the H16 1010 Government's spokesman explained that counsel for the Government H16 1020 and for du Pont had already held preliminary discussions with a view H16 1030 to arriving at a relief plan that both sides could recommend to the court. H16 1040 Du Pont, he said, had proposed disenfranchisement of its General H16 1050 Motors stock along with other restrictions on the du Pont-General H16 1060 Motors relationship. The Government, deeming these suggestions inadequate, H16 1070 had urged that any judgment include divestiture of du Pont's H16 1080 shares of General Motors. Counsel for the Government invited H16 1090 du Pont's views on this proposal before recommending a specific program, H16 1100 but stated that if the court desired, or if counsel for du Pont H16 1110 thought further discussion would not be profitable, the Government H16 1120 was prepared to submit a plan within thirty days. Counsel for H16 1130 du Pont indicated a preference for the submission of detailed plans by H16 1140 both sides at an early date. No previous antitrust case, he said, had H16 1150 involved interests of such magnitude or presented such complex problems H16 1160 of relief. The submission of detailed plans would place the issues H16 1170 before the court more readily than would discussion of divestiture H16 1180 or disenfranchisement in the abstract. The Court adopted this procedure H16 1190 with an appropriate time schedule for carrying it out. The H16 1200 Government submitted its proposed decree on October 25, 1957. The H16 1210 plan called for divestiture by du Pont of its 63,000,000 shares of General H16 1220 Motors stock by equal annual distributions to its stockholders, H16 1230 as a dividend, over a period of ten years. Christiana Securities Company H16 1240 and Delaware Realty + Investment Company, major stockholders H16 1250 in du Pont, and the stockholders of Delaware were dealt with specially H16 1260 by provisions requiring the annual sale by a trustee, again over H16 1270 a ten-year period, of du Pont's General Motors stock allocable to H16 1280 them, as well as any General Motors stock which Christiana and Delaware H16 1290 owned outright. If, in the trustee's judgment, "reasonable H16 1300 market conditions" did not prevail during any given year, he was to H16 1310 be allowed to petition the court for an extension of time within the H16 1320 ten-year period. In addition, the right to vote the General Motors H16 1330 stock held by du Pont was to be vested in du Pont's stockholders, H16 1340 other than Christiana and Delaware and the stockholders of Delaware; H16 1350 du Pont, Christiana, and Delaware were to be enjoined from acquiring H16 1360 stock in or exercising control over General Motors; du Pont, H16 1370 Christiana, and Delaware were to be prohibited to have any director H16 1380 or officer in common with General Motors, and vice versa; and H16 1390 General Motors and du Pont were to be ordered to terminate any agreement H16 1400 that provided for the purchase by General Motors of any specified H16 1410 percentage of its requirements of any du Pont manufactured product, H16 1420 or for the grant of exclusive patent rights, or for a grant by General H16 1430 Motors to du Pont of a preferential right to make or sell any H16 1440 chemical discovery of General Motors, or for the maintenance of any H16 1450 joint commercial enterprise by the two companies. On motion of H16 1455 the the court directed that a ruling be obtained from H16 1470 the Commissioner of Internal Revenue as to the federal income tax H16 1480 consequences of the Government's plan. On May 9, 1958, the Commissioner H16 1490 announced his rulings. The annual dividends paid to du Pont H16 1500 stockholders in shares of General Motors stock would be taxable as ordinary H16 1510 income to the extent of du Pont's earnings and profits. The H16 1520 measure, for federal income tax purposes, of the dividend to individual H16 1530 stockholders would be the fair market value of the shares at the time H16 1540 of each annual distribution. In the case of taxpaying corporate stockholders, H16 1550 the measure would be the lesser of the fair market value H16 1560 of the shares or du Pont's tax basis for them, which is approximately H16 1570 $2.09 per share. The forced sale of the General Motors stock owned H16 1580 by or allocable to Christiana, Delaware, and the stockholders of H16 1590 Delaware, and deposited with the trustee, would result in a tax to those H16 1600 parties at the capital gains rate. Du Pont's counterproposal H16 1610 was filed on May 14, 1958. Under its plan du Pont would retain H16 1620 its General Motors shares but be required to pass on to its stockholders H16 1630 the right to vote those shares. Christiana and Delaware would, H16 1640 in turn, be required to pass on the voting rights to the General Motors H16 1650 shares allocable to them to their own stockholders. Du Pont would H16 1660 be enjoined from having as a director, officer, or employee anyone H16 1670 who was simultaneously an officer or employee of General Motors, and H16 1680 no director, officer, or employee of du Pont could serve as a director H16 1690 of General Motors without court approval. Du Pont would be denied H16 1700 the right to acquire any additional General Motors stock except H16 1710 through General Motors' distributions of stock or subscription rights H16 1720 to its stockholders. On June 6, 1958, General Motors submitted H16 1730 its objections to the Government's proposal. It argued, that a divestiture order would severely depress the market H16 1750 value of the stock of both General Motors and du Pont, with consequent H16 1760 serious loss and hardship to hundreds of thousands of innocent H16 1770 investors, among them thousands of small trusts and charitable institutions; H16 1780 that there would be a similar decline in the market values of H16 1790 other automotive and chemical stocks, with similar losses to the stockholders H16 1800 of those companies; that the tremendous volume of General H16 1810 Motors stock hanging over the market for ten years would hamper the efforts H16 1820 of General Motors and other automobile manufacturers to raise H16 1830 equity capital; and that all this would have a serious adverse effect H16 1840 on the entire stock market and on general business activity. General H16 1850 Motors comprehensively contended that the Government plan would H16 1860 not be "in the public interest" as required by the mandate of this H16 1870 Court. The decrees proposed by the were filed H16 1880 in August of 1958. These plans, like du Pont's contained provisions H16 1890 for passing the vote on du Pont's General Motors shares on H16 1900 to the ultimate stockholders of du Pont, Christiana, and Delaware, H16 1910 except that officers and directors of the three companies, their spouses, H16 1920 and other people living in their households, as well as other specified H16 1930 persons, were to be totally disenfranchised. Both plans also prohibited H16 1940 common directors, officers, or employees between du Pont, Christiana, H16 1950 and Delaware, on the one hand, and General Motors on the H16 1960 other. H17 0010 It is not a medieval mental quirk or an attitude "unnourished by sense" H17 0020 to believe that husbands and wives should not be subjected to such H17 0030 a risk, or that such a possibility should not be permitted to endanger H17 0040 the confidentiality of the marriage relationship. While it is easy H17 0050 enough to ridicule Hawkins' pronouncement in Pleas of the Crown H17 0060 from a metaphysical point of view, the concept of the "oneness" H17 0070 of a married couple may reflect an abiding belief that the communion between H17 0080 husband and wife is such that their actions are not always to be H17 0090 regarded by the criminal law as if there were no marriage. H17 0100 By H17 0110 making inroads in the name of law enforcement into the protection which H17 0120 Congress has afforded to the marriage relationship, the Court today H17 0130 continues in the path charted by the recent decision in H17 0140 v& , 362 U&S& 525, where the Court held that, H17 0150 under the circumstances of that case, a wife could be compelled to H17 0160 testify against her husband over her objection. One need not waver in H17 0170 his belief in virile law enforcement to insist that there are other H17 0180 things in American life which are also of great importance, and to which H17 0190 even law enforcement must accommodate itself. One of these is the H17 0200 solidarity and the confidential relationship of marriage. The Court's H17 0210 opinion dogmatically asserts that the husband-wife conspiracy doctrine H17 0220 does not in fact protect this relationship, and that hence the doctrine H17 0230 "enthrone[s] an unreality into a rule of law". I am not H17 0240 easily persuaded that a rule accepted by so many people for so many centuries H17 0250 can be so lightly dismissed. But in any event, I submit that H17 0260 the power to depose belongs to Congress, not to this Court. I dissent. H17 0280 Petitioner, who claims to be a conscientious objector, was convicted H17 0290 of violating @ 12 (a) of the Universal Military Training and Service H17 0300 Act by refusing to be inducted into the armed forces. He claims H17 0310 that he was denied due process of law in violation of the Fifth Amendment, H17 0320 because (1) at a hearing before a hearing officer of the Department H17 0330 of Justice, he was not permitted to rebut statements attributed H17 0340 to him by the local board, and (2) at the trial, he was denied the right H17 0350 to have the hearing officer's report and the original report of H17 0360 the Federal Bureau of Investigation as to his claim. : H17 0370 On the record in this case, the administrative procedures prescribed H17 0380 by the Act were fully complied with; petitioner was not denied due H17 0390 process; and his conviction is sustained. Pp& 60-66. _(A)_ Petitioner H17 0400 was not denied due process in the administrative proceedings, H17 0410 because the statement in question was in his file, to which he had access, H17 0420 and he had opportunities to rebut it both before the hearing officer H17 0430 of the Department of Justice and before the appeal board. Pp& H17 0440 62-63. _(B)_ H17 0450 Petitioner was not entitled to have the hearing officer's H17 0460 notes and report, especially since he failed to show any particular H17 0470 need for them and he did have a copy of the Department of Justice's H17 0480 recommendation to the appeal board. Pp& 63-64. _(C)_ H17 0490 Petitioner was not entitled, either in the administrative hearing at H17 0500 the Department of Justice or at his trial, to inspect the original report H17 0510 of the Federal Bureau of Investigation, since he was furnished H17 0520 a resume of it, did not challenge its accuracy, and showed no particular H17 0530 need for the original report. Pp& 64-66. argued the cause and filed a brief for petitioner. H17 0550 argued the cause for the United States. H17 0560 On the brief were and . H17 0580 MR& JUSTICE CLARK delivered the opinion of the Court. H17 0590 This is a prosecution for refusal to be inducted into the H17 0600 armed services, in violation of the provisions of the Universal Military H17 0610 Training and Service Act, 62 Stat& 604, 622, 50 U&S&C& H17 0620 App& @ 462 (a). Petitioner, who claims to be a conscientious H17 0630 objector, contends that he was denied due process, both in the proceedings H17 0640 before a hearing officer of the Department of Justice and at H17 0650 trial. He says that he was not permitted to rebut before the hearing H17 0660 officer statements attributed to him by the local board, and, further, H17 0670 that he was denied at trial the right to have the Department of Justice H17 0680 hearing officer's report and the original report of the Federal H17 0690 Bureau of Investigation as to his claim- all in violation of the H17 0700 Fifth Amendment. The trial judge decided that the administrative procedures H17 0710 of the Act were fully complied with and refused to require H17 0720 the production of such documents. Petitioner was found guilty and sentenced H17 0730 to 15 months' imprisonment. The Court of Appeals affirmed. H17 0740 269 F& 2d 613. We granted certiorari in view of the importance of H17 0750 the questions in the administration of the Act. 361 U& S& 899. H17 0760 We have concluded that petitioner's claims are controlled by the rationale H17 0770 of v& , 348 U&S& 407 H17 0775 (1955), H17 0780 and v& , 346 U&S& 1 (1953), H17 0790 and therefore affirm the judgment. Petitioner registered with H17 0800 Local Board No& 9, Boulder, Colorado, on March 17, 1952. His H17 0810 answers to the classification questionnaire reflected that he was a H17 0820 minister of Jehovah's Witnesses, employed at night by a sugar producer. H17 0830 He claimed /4,-~D classification as a minister of religion, H17 0840 devoting a minimum of 100 hours a month to preaching. On November H17 0850 13, 1952, he was classified in Class /1,-~A. On November 22, H17 0860 1952, he wrote the Board, protesting this classification. He again stated H17 0870 that he was "a regular minister"; that he was "devoting H17 0875 an average H17 0880 of 100 hours a month to actual preaching publicly", in addition to H17 0890 50 to 75 hours in other ministerial duties, and that he opposed war in H17 0900 any form. Thereafter he was classified /1,-~O. On April 1, 1953, H17 0910 after some six months of full-time "pioneering", petitioner discontinued H17 0920 devoting 100 hours a month to preaching, but failed to so H17 0930 notify his local board. In a periodic review, the local board on July H17 0940 30, 1953, reclassified him /1,-~A and upheld this classification H17 0950 after a personal appearance by petitioner, because of his willingness H17 0960 to kill in defense of his church and home. Upon administrative approval H17 0970 of the reclassification, he was ordered to report for induction on H17 0980 June 11, 1956, but failed to do so. He was not prosecuted, however, H17 0990 and his case was subsequently reopened, in the light of H17 1000 v& , 348 U&S& 385 (1955). He was again H17 1010 reclassified /1,-~A by the local board. There followed a customary H17 1020 Department of Justice hearing, at which petitioner appeared. In H17 1030 his report to the Attorney General, the hearing officer suggested that H17 1040 the petitioner be exempt only from combatant training and service. H17 1050 On March 21, 1957, however, the Department recommended approval of H17 1060 the /1,-~A classification. Its ground for this recommendation was H17 1070 that, while petitioner claimed before the local board August 17, 1956 H17 1080 (as evidenced by its memorandum in his file of that date), that he H17 1090 was devoting 100 hours per month to actual preaching, the headquarters H17 1100 of the Jehovah's Witnesses reported that he was no longer doing so H17 1110 and, on the contrary, had relinquished both his Pioneer and Bible H17 1120 Student Servant positions. It reported that he now devoted only some H17 1130 6-1/2 hours per month to public preaching and from 20 to 25 hours per H17 1140 month to church activities. His claim was therefore "so highly exaggerated", H17 1150 the Department concluded, that it "cast doubt upon his H17 1160 veracity and, consequently, upon his sincerity and good faith". The H17 1170 appeal board furnished petitioner a copy of the recommendation. In H17 1180 his answer thereto, he advised the Board that he had made no such statement H17 1190 in 1956, and asserted that his only claim to "pioneering" H17 1200 was in 1952. The appeal board, however, unanimously concurred in the H17 1210 Department's recommendation. Upon return of the file to the local H17 1220 board, petitioner was again ordered to report for induction and this H17 1230 prosecution followed his failure to do so. Petitioner first contends H17 1240 that the Department denied him procedural due process by not giving H17 1250 him timely opportunity, before its final recommendation to the appeal H17 1260 board, to answer the statement of the local board as to his claim H17 1270 of devoting 100 hours to actual preaching. But the statement of the H17 1280 local board attributing this claim to petitioner was in his file. He H17 1290 admitted that he knew it was open to him at all times, and he could have H17 1300 rebutted it before the hearing officer. This he failed to do, asserting H17 1310 that he did not know it to be in his file. Apparently he never H17 1320 took the trouble to find out. Nevertheless he had ample opportunity H17 1330 to contest the statement before the appeal board. After the recommendation H17 1340 of the Department is forwarded to the appeal board, that is the H17 1350 appropriate place for a registrant to lodge his denial. This he did. H17 1360 We found in v& , that this H17 1370 was the controlling reason why copies of the recommendation should be H17 1380 furnished a registrant. We said there that it was necessary "that H17 1390 a registrant be given an opportunity to rebut [the Department's] H17 1400 recommendation when it comes to the Appeal Board, the agency with the H17 1410 ultimate responsibility for classification". 348 U&S&, at 412. H17 1420 We fail to see how such procedure resulted in any prejudice to petitioner's H17 1430 contention, which was considered by the appeal board and H17 1440 denied by it. As was said in , "it is the Appeal Board H17 1450 which renders the selective service determination considered 'final' H17 1460 in the courts, not to be overturned unless there is no basis in fact. H17 1470 v& , 327 U&S& 114". 348 H17 1475 U& H17 1480 S&, at 412-413. But there are other contentions which might H17 1490 be considered more difficult. At his trial, petitioner sought to secure H17 1500 through subpoena the longhand notes of the Department's H17 1510 hearing officer, Evensen, as well as his report thereon. Petitioner H17 1520 also claimed at trial the right to inspect the original Federal H17 1530 Bureau of Investigation reports to the Department of Justice. H17 1540 He alleged no specific procedural errors or evidence withheld; nor H17 1550 did he elaborate just what favorable evidence the Federal Bureau of H17 1560 Investigation reports might disclose. Section 6 (~j) of the H17 1565 Act, H17 1570 as we have held, does require the Department's recommendation to H17 1580 be placed in a registrant's file. v& . But there is nothing in the Act requiring the hearing H17 1600 officer's report to be likewise turned over to the registrant. While H17 1610 the regulations formerly required that the hearing officer's report H17 1620 be placed in the registrant's file, this requirement was eliminated H17 1630 in 1952. Moreover, the hearing officer's report is but intradepartmental, H17 1640 is directed to the Attorney General and, of course, is not H17 1650 the recommendation of the Department. It is not essentially different H17 1660 from a memorandum of an attorney in the Department of Justice, of H17 1670 which the Attorney General receives many, and to which he may give H17 1680 his approval or rejection. It is but part of the whole process within H17 1690 the Department that goes into the making of the final recommendation H17 1700 to the appeal board. It is also significant that neither this H17 1710 report nor the hearing officer's notes were furnished to the appeal H17 1720 board. Hence the petitioner had full opportunity to traverse the only H17 1730 conclusions of the Department on file with the Board. Petitioner H17 1740 knew that the Department's recommendation was based not on the hearing H17 1750 officer's report but on the statement of the local board in his H17 1760 file. Having had every opportunity to rebut the finding of the local H17 1770 board before both the hearing officer and the appeal board, petitioner H17 1780 cannot now claim that he was denied due process because he did not succeed. H17 1790 It appears to us that the same reasoning applies to the H17 1800 production of the hearing officer's report and notes at the trial. H17 1810 In addition, petitioner has failed to show any particular need for the H17 1820 report and notes. While there are now allegations of the withholding H17 1830 of "favorable evidence developed at the hearing" and a denial of H17 1840 a "full and fair hearing", no such claim was made by petitioner at H17 1850 any stage of the administrative process. Moreover, his testimony at H17 1860 trial never developed any such facts. In the light of these circumstances, H17 1870 as well as the fact that the issue at trial in this respect centered H17 1880 entirely on the Department's recommendation, which petitioner H17 1890 repudiated but which both the appeal board and the courts below found H17 1900 supported by the record, we find no relevancy in the hearing officer's H17 1910 report and notes. Finally petitioner says that he was entitled H17 1920 to inspect the ~FBI report during the proceedings before the H17 1930 hearing officer as well as at the trial. He did receive a resume of H17 1940 it- the same that was furnished the appeal board- and he made no H17 1950 claim of its inaccuracy. Even now no such claim is asserted. He bases H17 1960 his present contention on the general right to explore, indicating that H17 1970 he hopes to find some discrepancy in the resume. But this is fully H17 1980 answered by v& . There we held H17 1990 "that the statutory scheme for review, within the selective service H17 2000 system, **h entitles [conscientious objectors] to no guarantee H17 2005 that H17 2010 the ~FBI reports must be produced for their inspection". 346 H17 2020 U&S&, at 5-6. Even if we were not bound by , petitioner H17 2030 here would not be entitled to the report. The recommendation of H17 2040 the Department- as well as the decision of the appeal board- was H17 2050 based entirely on the local board file, not on an ~FBI report. H18 0010 #FOREIGN POLICY IN ITS TOTAL CONTEXT# With this enlarged role in H18 0020 mind, I should like to make a few suggestions: What we in the United H18 0030 States do or do not do will make a very large difference in what H18 0040 happens in the rest of the world. We in this Department must think about H18 0050 foreign policy in its total context. We cannot regard foreign policy H18 0060 as something left over after defense policy or trade policy or fiscal H18 0070 policy has been extracted. Foreign policy is the total involvement H18 0080 of the American people with peoples and governments abroad. That H18 0090 means that, if we are to achieve a new standard of leadership, we must H18 0100 think in terms of the total context of our situation. It is the concern H18 0110 of the Department of State that the American people are safe and H18 0120 secure- defense is not a monopoly concern of the Department of Defense. H18 0130 It is also the concern of the Department of State that our H18 0140 trading relationships with the rest of the world are vigorous, profitable, H18 0150 and active- this is not just a passing interest or a matter of H18 0160 concern only to the Department of Commerce. We can no longer rely on H18 0170 interdepartmental machinery "somewhere upstairs" to resolve differences H18 0180 between this and other departments. Assistant Secretaries of H18 0190 State will now carry an increased burden of active formulation and coordination H18 0200 of policies. Means must be found to enable us to keep in H18 0210 touch as regularly and as efficiently as possible with our colleagues H18 0220 in other departments concerned with foreign policy. I think we H18 0230 need to concern ourselves also with the timeliness of action. Every H18 0240 policy officer cannot help but be a planning officer. Unless we keep H18 0250 our eyes on the horizon ahead, we shall fail to bring ourselves on target H18 0260 with the present. The movement of events is so fast, the pace so H18 0270 severe, that an attempt to peer into the future is essential if we are H18 0280 to think accurately about the present. If there is anything which we H18 0290 can do in the executive branch of the Government to speed up the processes H18 0300 by which we come to decisions on matters on which we must act H18 0310 promptly, that in itself would be a major contribution to the conduct H18 0320 of our affairs. Action taken today is often far more valuable than action H18 0330 taken several months later in response to a situation then out of H18 0340 control. There will of course be times for delay and inaction. H18 0350 What I am suggesting is that when we delay, or when we fail to act, H18 0360 we do so intentionally and not through inadvertence or through bureaucratic H18 0370 or procedural difficulties. I also hope that we can H18 0380 do something about reducing the infant mortality rate of ideas- an affliction H18 0390 of all bureaucracies. We want to stimulate ideas from the bottom H18 0400 to the top of the Department. We want to make sure that our junior H18 0410 colleagues realize that ideas are welcome, that initiative goes right H18 0420 down to the bottom and goes all the way to the top. I hope no one H18 0430 expects that only Presidential appointees are looked upon as sources H18 0440 of ideas. The responsibility for taking the initiative in generating H18 0450 ideas is that of every officer in the Department who has a policy function, H18 0460 regardless of rank. Further, I would hope that we could H18 0470 pay attention to little things. While observing the operations of H18 0480 our Government in various parts of the world, I have felt that in many H18 0490 situations where our policies were good we have tended to ignore minor H18 0500 problems which spoiled our main effort. To cite only a few examples: H18 0510 The wrong man in the wrong position, perhaps even in a junior H18 0515 position H18 0520 abroad, can be a source of great harm to our policy; the attitudes H18 0530 of a U&N& delegate who experiences difficulty in finding adequate H18 0540 housing in New York City, or of a foreign diplomat in similar H18 0550 circumstances in our Capital, can be easily be directed against the United H18 0560 States and all that it stands for. Dozens of seemingly small H18 0570 matters go wrong all over the world. Sometimes those who know about them H18 0580 are too far down the line to be able to do anything about them. I H18 0590 would hope that we could create the recognition in the Department and H18 0600 overseas that those who come across little things going wrong have the H18 0610 responsibility for bringing these to the attention of those who can H18 0620 do something about them. If the Department of State is to take H18 0630 primary responsibility for foreign policy in Washington, it follows H18 0640 that the ambassador is expected to take charge overseas. This does H18 0650 not mean in a purely bureaucratic sense but in an active, operational, H18 0660 interested, responsible fashion. He is expected to know about what H18 0670 is going on among the representatives of other agencies who are stationed H18 0680 in his country. He is expected to supervise, to encourage, to direct, H18 0690 to assist in any way he can. If any official operation abroad begins H18 0700 to go wrong, we shall look to the ambassador to find out why and H18 0710 to get suggestions for remedial action. #THE PROBLEMS OF A POLICY OFFICER# H18 0720 It occurred to me that you might be interested in some thoughts H18 0730 which I expressed privately in recent years, in the hope of clearing H18 0740 up a certain confusion in the public mind about what foreign policy H18 0750 is all about and what it means, and of developing a certain compassion H18 0760 for those who are carrying such responsibilities inside Government. H18 0770 I tried to do so by calling to their attention some of the problems H18 0780 that a senior departmental policy officer faces. This means practically H18 0790 everybody in this room. Whether it will strike home for you or not H18 0800 will be for you to determine. The senior policy officer may H18 0810 be moved to think hard about a problem by any of an infinite variety of H18 0820 stimuli: an idea in his own head, the suggestions of a colleague, H18 0830 a question from the Secretary or the President, a proposal by another H18 0840 department, a communication from a foreign government or an American H18 0850 ambassador abroad, the filing of an item for the agenda of the United H18 0860 Nations or of any other of dozens of international bodies, a news H18 0870 item read at the breakfast table, a question to the President or the H18 0880 Secretary at a news conference, a speech by a Senator or Congressman, H18 0890 an article in a periodical, a resolution from a national organization, H18 0900 a request for assistance from some private American interests abroad, H18 0910 et cetera, ad infinitum. The policy officer lives with his antennae H18 0920 alerted for the questions which fall within his range of responsibility. H18 0930 His first thought is about the question itself: Is H18 0940 there a question here for American foreign policy, and, if so, what is H18 0950 it? For he knows that the first and sometimes most difficult job H18 0960 is to know what the question is- that when it is accurately identified H18 0970 it sometimes answers itself, and that the way in which it is posed H18 0980 frequently shapes the answer. Chewing it over with his colleagues H18 0990 and in his own mind, he reaches a tentative identification of the H18 1000 question- tentative because it may change as he explores it further H18 1010 and because, if no tolerable answer can be found, it may have to be changed H18 1020 into one which can be answered. Meanwhile he has been thinking H18 1030 about the facts surrounding the problem, facts which he knows can H18 1040 never be complete, and the general background, much of which has already H18 1050 been lost to history. He is appreciative of the expert help available H18 1060 to him and draws these resources into play, taking care to examine H18 1070 at least some of the raw material which underlies their frequently H18 1080 policy-oriented conclusions. He knows that he must give the expert his H18 1090 place, but he knows that he must also keep him in it. He is H18 1100 already beginning to box the compass of alternative lines of action, H18 1110 including doing nothing. He knows that he is thinking about action in H18 1120 relation to a future which can be perceived but dimly through a merciful H18 1130 fog. But he takes his bearings from the great guidelines of policy, H18 1140 well-established precedents, the commitments of the United States H18 1150 under international charters and treaties, basic statutes, and well-understood H18 1160 notions of the American people about how we are to conduct H18 1170 ourselves, in policy literature such as country papers and National Security H18 1180 Council papers accumulated in the Department. He will H18 1190 not be surprised to find that general principles produce conflicting H18 1200 results in the factual situation with which he is confronted. He must H18 1210 think about which of these principles must take precedence. He will H18 1220 know that general policy papers written months before may not fit his H18 1230 problem because of crucial changes in circumstance. He is aware that H18 1240 every moderately important problem merges imperceptibly into every other H18 1250 problem. He must deal with the question of how to manage a part H18 1260 when it cannot be handled without relation to the whole- when the whole H18 1270 is too large to grasp. He must think of others who have a H18 1280 stake in the question and in its answer. Who should be consulted among H18 1290 his colleagues in the Department or other departments and agencies H18 1300 of the Government? Which American ambassadors could provide helpful H18 1310 advice? Are private interests sufficiently involved to be consulted? H18 1320 What is the probable attitude of other governments, including H18 1330 those less directly involved? How and at what stage and in what sequence H18 1340 are other governments to be consulted? If action is indicated, H18 1350 what kind of action is relevant to the problem? The selection H18 1360 of the wrong tools can mean waste, at best, and at worst an unwanted H18 1370 inflammation of the problem itself. Can the President or the Secretary H18 1380 act under existing authority, or will new legislation and new money H18 1390 be required? Should the action be unilateral or multilateral? H18 1400 Is the matter one for the United Nations or some other international H18 1410 body? For, if so, the path leads through a complex process of parliamentary H18 1420 diplomacy which adds still another dimension to the problem. H18 1430 #RESPECT FOR THE OPINIONS OF MANKIND# What type of action can H18 1440 hope to win public support, first in this country and then abroad? H18 1450 For the policy officer will know that action can almost never be secret H18 1460 and that in general the effectiveness of policy will be conditioned H18 1470 by the readiness of the country to sustain it. He is interested in H18 1480 public opinion for two reasons: first, because it is important in itself, H18 1490 and, second, because he knows that the American public cares about H18 1500 a decent respect for the opinions of mankind. And, given probable H18 1510 public attitudes- about which reasonably good estimates can be made- H18 1520 what action is called for to insure necessary support? May H18 1530 I add a caution on this particular point? We do not want policy H18 1540 officers below the level of Presidential appointees to concern themselves H18 1550 too much with problems of domestic politics in recommending foreign H18 1560 policy action. In the first place our business is foreign policy, H18 1570 and it is the business of the Presidential leadership and his appointees H18 1580 in the Department to consider the domestic political aspects of H18 1590 a problem. Mr& Truman emphasized this point by saying, "You fellows H18 1600 in the Department of State don't know much about domestic politics". H18 1610 This is an important consideration. If we sit here H18 1620 reading editorials and looking at public-opinion polls and other reports H18 1630 that cross our desks, we should realize that this is raw, undigested H18 1640 opinion expressed in the absence of leadership. What the American H18 1650 people will do turns in large degree on their leadership. We cannot H18 1660 test public opinion until the President and the leaders of the country H18 1670 have gone to the public to explain what is required and have asked them H18 1680 for support for the necessary action. I doubt, for example, that, H18 1690 3 months before the leadership began to talk about what came to be the H18 1700 Marshall plan, any public-opinion expert would have said that the country H18 1710 would have accepted such proposals. The problem in the H18 1720 policy officer's mind thus begins to take shape as a galaxy of utterly H18 1730 complicated factors- political, military, economic, financial, legal, H18 1740 legislative, procedural, administrative- to be sorted out and handled H18 1750 within a political system which moves by consent in relation to H18 1760 an external environment which cannot be under control. And the H18 1770 policy officer has the hounds of time snapping at his heels. H19 0010 While there should be no general age limit or restriction to one H19 0020 sex, there will be particular projects requiring special maturity and H19 0030 some open only to men or to women. The Peace Corps should not pay H19 0040 the expenses of a wife or family, unless the wife is also accepted for H19 0050 full-time Peace Corps work on the same project. There should H19 0060 be no draft exemption because of Peace Corps service. In most cases H19 0070 service in the Corps will probably be considered a ground for temporary H19 0080 deferment. Peace Corps volunteers obviously should not H19 0090 be paid what they might earn in comparable activities in the United H19 0100 States. Nor would it be possible in many cases for them to live in H19 0110 health or any effectiveness on what their counterparts abroad are paid. H19 0120 The guiding principle indeed should not be anything like compensation H19 0130 for individual services. Rather the principle should be akin H19 0140 to that of the allowance. Peace Corps volunteers should be given H19 0150 just enough to provide a minimum decent standard of living. They should H19 0160 live in modest circumstances, avoiding all conspicuous consumption. H19 0170 Wherever possible they should live with their host country counterparts. H19 0180 Some special health requirements might have to be met. For example, H19 0190 it probably will be necessary for the Corps to have authority to H19 0200 pay medical expenses of volunteers. Perhaps existing Public Health H19 0210 Service, State Department and Armed Services medical facilities H19 0220 can be utilized. For readjustment to the U&S&, volunteers H19 0230 should be given some separation allowance at the end of their overseas H19 0240 service, based on the length of time served. #7. IN WHAT PART OF H19 0250 THE GOVERNMENT SHOULD THE PEACE CORPS BE ESTABLISHED?# The idea H19 0260 of a Peace Corps has captured the imagination of a great many people. H19 0270 Support for it cuts across party, regional, ethnic and other lines. H19 0280 The Peace Corps, therefore, offers an opportunity to add a new dimension H19 0290 to our approach to the world- an opportunity for the American H19 0300 people to think anew and start afresh in their participation in world H19 0310 development. For this, the Peace Corps should be administered H19 0320 by a small, new, alive agency operating as one component in our whole H19 0330 overseas operation. Pending the reorganization of our foreign H19 0340 aid structure and program, the Peace Corps should be established H19 0350 as an agency in the Department of State. When the aid operations are H19 0360 reorganized the Peace Corps should remain a semi-autonomous, functional H19 0370 unit. Meanwhile, the Peace Corps could be physically located H19 0380 in ~ICA's facilities and depend on the State Department and H19 0390 ~ICA for administrative support and, when needed, program assistance. H19 0400 In this way the Peace Corps can be launched with its own H19 0410 identity and spirit and yet receive the necessary assistance from those H19 0420 now responsible for United States foreign policy and our overseas H19 0430 operations. #8. HOW AND WHEN SHOULD THE PEACE CORPS BE LAUNCHED?# H19 0440 The Peace Corps can either begin in very low gear, with only preparatory H19 0450 work undertaken between now and when Congress finally appropriates H19 0460 special funds for it- or it can be launched now and in earnest H19 0470 by executive action, with sufficient funds and made available from H19 0480 existing Mutual Security appropriations to permit a number of substantial H19 0490 projects to start this summer. The Peace Corps should H19 0500 be launched soon so that the opportunity to recruit the most qualified H19 0510 people from this year's graduating classes will not be lost. Nor H19 0520 should we lose the opportunity to use this summer for training on university H19 0530 campuses. If launched in a careful but determined way within H19 0540 the next few weeks, the Peace Corps could have several hundred H19 0550 persons in training this summer for placement next Fall. Within a year H19 0560 or two several thousand might be in service. It can then grow steadily H19 0570 as it proves itself and as the need for it is demonstrated. #9. H19 0580 WHAT WOULD THE FIRST PROJECTS BE?# In the first year there should H19 0590 probably be considerable emphasis on teaching projects. The need here H19 0600 is most clearly felt and our capacity to recruit and train qualified H19 0610 volunteers in a short period of time is greatest. There would, H19 0620 however, be a variety of other skills- medical, agricultural, engineering- H19 0630 which would be called for in the first year through the private H19 0640 agency programs and through the provision of technician helpers H19 0650 to existing development projects. The first year's projects H19 0660 should also be spread through several countries in Latin America, H19 0670 Africa and Asia. #10. HOW WILL THE PEACE CORPS BE RECEIVED ABROAD?# H19 0680 Although the need for outside trained manpower exists in every H19 0690 newly developing nation, the readiness to receive such manpower, or to H19 0700 receive it from the United States will vary from country to country. H19 0710 A certain skepticism about the coming of Americans is to be expected H19 0720 in many quarters. Unfriendly political groups will no doubt do everything H19 0730 in their power to promote active hostility. But there are indications H19 0740 that many developing nations will welcome Peace Corps volunteers, H19 0750 and that if the volunteers are well chosen, they will soon demonstrate H19 0760 their value and make many friends. It is important, however, H19 0770 that the Peace Corps be advanced not as an arm of the Cold War H19 0780 but as a contribution to the world community. In presenting it to H19 0790 other governments and to the United Nations, we could propose that H19 0800 every nation consider the formation of its own peace corps and that the H19 0810 United Nations sponsor the idea and form an international coordinating H19 0820 committee. We should hope that peace corps projects will be truly H19 0830 international and that our citizens will find themselves working alongside H19 0840 citizens of the host country and also volunteers from other lands. H19 0850 In any case, our Peace Corps personnel should be offered as technician H19 0860 helpers in development projects of the U&N& and other international H19 0870 agencies. The Peace Corps is not a diplomatic or H19 0880 propaganda venture but a genuine experiment in international partnership. H19 0890 Our aim must be to learn as much as we teach. The Peace Corps H19 0900 offers an opportunity to bring home to the United States the problems H19 0910 of the world as well as an opportunity to meet urgent host country H19 0920 needs for trained manpower. If presented in this spirit, the response H19 0930 and the results will be immeasurably better. #11. HOW WILL IT BE H19 0940 FINANCED?# The already appropriated funds within the discretion of H19 0950 the President and Secretary of State under the Mutual Security H19 0960 Act are the only immediately available source of financing this summer's H19 0970 pilot programs of the Peace Corps. If it is decided to make a H19 0980 small shift which may be required from military aid or special assistance H19 0990 funds, in order to carry out the purposes of the Mutual Security H19 1000 Act through this new peaceful program, this will be a hopeful sign H19 1010 to the world. Congress should then be asked to give the Peace Corps H19 1020 a firm legislative foundation for the next fiscal year. Specifically, H19 1030 Congress should consider authorizing the Peace Corps to receive H19 1040 contributions from American businesses, unions, civic organizations H19 1050 and the public at large. For this must be the project of the whole H19 1060 American people. An Advisory Council of outstanding public figures H19 1070 with experience in world affairs should be formed to give the program H19 1080 continuing guidance and to afford a focal point for public understanding. H19 1090 Steps should also be taken to link the Food for Peace H19 1100 Program with the Peace Corps, so that foreign currencies accumulated H19 1110 by the sale of U&S& surplus food under P&L& 480 can be H19 1120 put to use to pay some of the host country expenses of Peace Corps H19 1130 personnel. The extent to which participating bodies such as U& H19 1140 S& voluntary agencies, universities, international organizations, H19 1150 and the host country or institutions in the host country can and should H19 1160 share the cost of the Peace Corps programs must be fully explored. H19 1170 #12. IS IT WORTH THE COST AND THE RISKS?# No matter how well H19 1180 conceived and efficiently run, there probably will be failures. These H19 1190 could be costly and have a serious effect both at home and abroad. H19 1200 But as the popular response suggests, the potentiality of the H19 1210 Peace Corps is very great. It can contribute to the development of H19 1220 critical countries and regions. It can promote international cooperation H19 1230 and good will toward this country. It can also contribute to the H19 1240 education of America and to more intelligent American participation H19 1250 in the world. With thousands of young Americans going to work H19 1260 in developing areas, millions of Americans will become more directly H19 1270 involved in the world than ever before. With colleges and universities H19 1280 carrying a large part of the program, and with students looking H19 1290 toward Peace Corps service, there will be an impact on educational H19 1300 curriculum and student seriousness. The letters home, the talks later H19 1310 given by returning members of the Peace Corps, the influence on H19 1320 the lives of those who spend two or three years in hard work abroad- H19 1330 all this may combine to provide a substantial popular base for responsible H19 1340 American policies toward the world. And this is meeting the world's H19 1350 need, too, since what the world most needs from this country H19 1360 is better understanding of the world. The Peace Corps thus can H19 1370 add a new dimension to America's world policy- one for which people H19 1380 here and abroad have long been waiting. As you said in your State H19 1390 of the Union message. "The problems **h are towering and unprecedented- H19 1400 and the response must be towering and unprecedented as well". H19 1420 #TO THE CONGRESS OF THE UNITED STATES:# I recommend to the Congress H19 1430 the establishment of a permanent Peace Corps- . I H19 1470 have today signed an Executive Order establishing a Peace Corps on H19 1480 a temporary pilot basis. The temporary Peace Corps will be H19 1490 a source of information and experience to aid us in formulating more H19 1500 effective plans for a permanent organization. In addition, by starting H19 1510 the Peace Corps now we will be able to begin training young men and H19 1520 women for overseas duty this summer with the objective of placing them H19 1530 in overseas positions by late fall. This temporary Peace Corps is H19 1540 being established under existing authority in the Mutual Security H19 1550 Act and will be located in the Department of State. Its initial expenses H19 1560 will be paid from appropriations currently available for our foreign H19 1570 aid program. Throughout the world the people of the newly H19 1580 developing nations are struggling for economic and social progress which H19 1590 reflects their deepest desires. Our own freedom, and the future H19 1600 of freedom around the world, depend, in a very real sense, on their ability H19 1610 to build growing and independent nations where men can live in dignity, H19 1620 liberated from the bonds of hunger, ignorance and poverty. H19 1630 One of the greatest obstacles to the achievement of this goal is H19 1640 the lack of trained men and women with the skill to teach the young and H19 1650 assist in the operation of development projects- men and women with H19 1660 the capacity to cope with the demands of swiftly evolving economics, H19 1670 and with the dedication to put that capacity to work in the villages, H19 1680 the mountains, the towns and the factories of dozens of struggling nations. H19 1690 The vast task of economic development urgently requires H19 1700 skilled people to do the work of the society- to help teach in the H19 1710 schools, construct development projects, demonstrate modern methods of H19 1720 sanitation in the villages, and perform a hundred other tasks calling H19 1730 for training and advanced knowledge. To meet this urgent need H19 1740 for skilled manpower we are proposing the establishment of a Peace H19 1750 Corps- an organization which will recruit and train American volunteers, H19 1760 sending them abroad to work with the people of other nations. H19 1770 This organization will differ from existing assistance programs H19 1780 in that its members will supplement technical advisers by offering the H19 1790 specific skills needed by developing nations if they are to put technical H19 1800 advice to work. They will help provide the skilled manpower necessary H19 1810 to carry out the development projects planned by the host governments, H19 1820 acting at a working level and serving at great personal sacrifice. H19 1830 There is little doubt that the number of those who wish to serve H19 1840 will be far greater than our capacity to absorb them. H20 0010 _WILDLIFE HABITAT RESOURCES_ In 1960 one-quarter of the 92.5 million H20 0020 recreation visits to the National Forests and Grasslands were for H20 0030 the primary purpose of hunting and fishing. Hunter and fisherman visits H20 0040 since 1949 have increased 8 times faster than the nationwide sale H20 0050 of hunting and fishing licenses. This use is expected to increase to H20 0060 about 50 million visits by 1972. The long-range objective of habitat H20 0070 management is to make it fully productive so as to support fish and H20 0080 game populations to contribute to the need for public use and enjoyment. H20 0090 The wildlife habitat management proposals for the 10-year period H20 0100 are: _1._ Revise and complete wildlife habitat management H20 0110 and improvement plans for all administrative units, assuring proper coordination H20 0120 between wildlife habitat management and other resources. _2._ H20 0130 Inventory and evaluate wildlife habitat resources in cooperation H20 0140 with other Federal agencies and with the States in which National H20 0150 Forests and Grasslands are located, as a basis for orderly development H20 0160 of wildlife habitat improvement and coordination programs, including H20 0170 (a) big-game, gamebird, and small-game habitat surveys and investigations H20 0180 on the 186 million acres of National Forests and Grasslands, H20 0190 (b) fishery habitat surveys and investigations on the 81,000 miles H20 0200 of National Forest fishing streams and nearly 3 million acres of lakes H20 0210 and impoundments, and (c) participation in planning, inspection, and H20 0220 control phases of all habitat improvement, land- and water-use projects H20 0230 conducted on National Forest lands by States, other Federal agencies, H20 0240 and private groups to assure that projects will benefit wildlife H20 0250 and be in harmony with other resource values. _3._ Improve food H20 0260 and cover on 1.5 million acres of key wildlife areas. _4._ Develop H20 0270 wildlife openings, food patches, and game ways in dense vegetation H20 0280 by clearing or controlled burning on 400,000 acres. _5._ Improve H20 0290 7,000 miles of fishing streams and 56,000 acres of lakes by stabilizing H20 0300 banks, planting streamside cover, and constructing channel improvements. H20 0310 #PROTECTION# The total adverse impact of disease, insects, H20 0320 fire, weather, destructive animals, and other forces on the uses and H20 0330 values of forest resources is not generally recognized. They kill and H20 0340 destroy, retard or prevent reproduction and growth, impair and damage H20 0350 values, and disrupt uses. The loss in growth of sawtimber because H20 0360 of damage by destructive agencies in the United States in 1952 H20 0370 was estimated to be about 44 billion board feet. If it were not for the H20 0380 effect of destructive agencies, sawtimber growth would have been nearly H20 0390 twice as great as the 47 billion board feet in 1952. About 45 percent H20 0400 of the loss in growth was attributable to disease, 20 percent to H20 0410 insects, 17 percent to fire, and 18 percent to weather, animals, and H20 0420 various other causes. These destructive forces also have a seriously H20 0430 adverse effect upon the watersheds and their life-supporting waterflows, H20 0440 and upon the other renewable forest resources. The long-range H20 0450 objective is to hold the damage from destructive agencies below H20 0460 the level which would seriously interfere with intensive management H20 0470 of the National Forest System under principles of multiple use and H20 0480 high-level sustained yield of products and services. This can be accomplished H20 0490 substantially by a continued trend toward better facilities H20 0500 and techniques for fire control and more resources to cope with critical H20 0510 fire periods, and a more intensive application of a program of prevention, H20 0520 detection, and control of insect and disease infestations. In H20 0530 addition to direct protection measures, more intensive management of H20 0540 timber resources will assist in reduction of losses from insects and H20 0550 disease. _PROTECTION FROM INSECTS AND DISEASE_ In the 10-year period, H20 0560 it is proposed that insect and disease control on the National Forest H20 0570 System be stepped up to a level of prevention, detection, and H20 0580 control of insect and disease infestations that will substantially reduce H20 0590 the occurrence of large infestations toward the end of the initial H20 0600 period. This will require about a 40 percent increase over the present H20 0610 level of protection. The work will consist of: _1._ Intensification H20 0620 of present activities through (a) quicker, more extensive, and H20 0630 more thorough surveys to detect incipient outbreaks; (b) more reliable H20 0640 evaluation of the potential of initial outbreaks to cause widespread H20 0650 damage; (c) quicker and more effective control action in the initial H20 0660 stages to prevent a large-scale epidemic. The initial suppression H20 0670 activities would cover about twice the acreage currently being treated. H20 0680 _2._ Continuation of present blister rust control work plus extension H20 0690 of control to 250,000 acres not now protected but which should H20 0700 be managed for white pine production. The objective is to achieve sufficient H20 0710 effectiveness of control on all of the area now under treatment H20 0720 plus the additional acres so that after the initial period only maintenance H20 0730 control will be needed. _3._ Initiating a program to control H20 0740 dwarfmistletoe on several hundred thousand acres of selected better H20 0750 stands of young softwood sawtimber on better growing sites. _4._ H20 0760 Coordination of pest control objectives with timber management activities H20 0770 to reduce losses. _PROTECTION FROM FIRE_ It is proposed H20 0780 that in H20 0790 10 years all commercial timberlands, all critical watersheds, and H20 0800 other lands in the National Forest System developed or proposed for H20 0810 intensive use will be given protection from fire adequate to meet the H20 0820 fire situation in the worst years and under serious peak loads. This H20 0830 will include 125 million acres compared with 23 million acres now receiving H20 0840 such protection. An additional 15 million acres will be given H20 0850 a lesser degree of protection but adequate to meet the average fire situation. H20 0860 Meeting these levels of protection from fire calls for: H20 0870 _1._ Expansion, modernization, and development of fire control H20 0880 to a proficiency and strength of force which will prevent as many H20 0890 fires as possible and suppress fires before they spread beyond permitted H20 0900 standards. This is to be accomplished by nearly doubling the present H20 0910 level of preventive effort, detection, skilled fire-fighting crews, H20 0920 and equipment use. This will include a stepped-up program of training H20 0930 and development of personnel. _2._ Adoption and use of new and H20 0940 modern techniques being developed for prevention, for suppression of fires H20 0950 while small, and for stopping large fires while running and burning H20 0960 intensely. _3._ Reduction of hazardous fuel conditions to minimize H20 0970 the chances of large fires developing and spreading to high-value H20 0980 areas. This work will cover the most serious one-fourth of all land H20 0990 needing such treatment, and will consist of burning 250,000 acres of highly H20 1000 hazardous debris concentration, felling snags on 350,000 acres of H20 1010 high lightning-occurrence areas, prescribed burning on 3.5 million acres, H20 1020 removing roadside fuel on 39,000 acres, and clearing and maintaining H20 1030 11,000 miles of firebreaks. _PROTECTION FROM OTHER DAMAGE_ Rodent H20 1040 control work for the 10-year period will be aimed at control of H20 1050 the most serious infestations of harmful rodents, such as porcupines H20 1060 and mice, on high-value areas of forage and commercial timberlands. These H20 1070 areas comprise about half of the total area of rodent infestation H20 1080 on the National Forests. Approximately 1.8 million acres of rangelands H20 1090 and 9.4 million acres of timberlands would be treated in this period. H20 1100 Control would be limited to those rodents for which economical means H20 1110 of control are known. #ROADS AND TRAILS# The transportation H20 1120 system which serves the National Forests is a complex of highways and H20 1130 access roads and trails under various ownerships and jurisdictions. H20 1140 This system is divided into a forest highway system, administered by H20 1150 the Secretary of Commerce, and a forest development road and trail system, H20 1160 administered by the Secretary of Agriculture. Both of these H20 1170 systems are essential for the production, development, and use of the H20 1180 National H20 1190 Forests. In the forest highway system, there are now H20 1200 24,400 miles of public roads. These are mostly through highways that H20 1210 carry traffic going from one destination to another. Because administration H20 1220 of the forest highway system is a responsibility of the Secretary H20 1230 of Commerce with maintenance provided by the States and counties, H20 1240 this Development Program for the National Forests does not include H20 1250 estimates of the funds needed to maintain the forest highway system H20 1260 nor to construct the additions to its that are needed. It is estimated H20 1270 that about 70,000 miles of forest highways will eventually be needed H20 1280 to fully serve the National Forests. In the forest development H20 1290 road and trail system, there are now 162,400 miles of roads and H20 1300 106,500 miles of supplemental foot and horse trails. These roads are H20 1310 largely of less than highway standards, and usually carry traffic which H20 1320 is related to use of the National Forests. Construction and maintenance H20 1330 of this system is a responsibility of the Secretary of Agriculture. H20 1340 It is estimated that about 542,250 miles of forest development H20 1350 roads, and 80,000 miles of trails, constitute the system that will eventually H20 1360 be needed to obtain the maximum practicable yield and use of H20 1370 the wood, water, forage, and wildlife and recreation resources of the H20 1380 National Forests on a continuing basis. The ultimate trail system H20 1390 will be of value primarily for recreation and wildlife utilization H20 1400 and fire protection. It will be carefully planned to maintain optimum H20 1410 service to these important resources and watersheds. The presence H20 1420 or lack of access by road or trail has a direct and controlling H20 1430 influence on all phases of forest management and utilization such as: H20 1440 _(A)_ the protection of forage, timber, and wildlife resources H20 1450 from fire, insects, and disease; _(B)_ the balanced use of recreation, H20 1460 hunting, and fishing areas; _(C)_ the volume of timber that H20 1470 can be marketed, especially for small sales and the support of dependent H20 1480 communities and small business enterprises; _(D)_ the level H20 1490 of salvage cutting in dead and dying timber stands and the opportunity H20 1500 to promptly salvage losses resulting from fire, windstorm, insects, H20 1510 and disease; _(E)_ the protection of watershed lands from erosion H20 1520 and overgrazing by animals. The existence of road systems H20 1530 permits an intensity of management and use for all National Forest purposes H20 1540 that is not otherwise possible. Furthermore, roads that give H20 1550 access to National Forest timber are investments which pay their own H20 1560 way over a period of years. Use of these roads by the public results H20 1570 in substantial benefits to the localities the roads serve. The H20 1580 long-range objective of this Department is to provide and maintain H20 1590 a system of forest development roads and trails which will adequately H20 1600 service the National Forest System at the levels needed to meet expected H20 1610 needs and optimum production of products and services. For the H20 1620 year 2000 this means servicing (a) the protection requirements of a watershed H20 1630 producing at least 200 million acre-feet of water each year, (b) H20 1640 recreation and wildlife resources used each year by 635 million visitors, H20 1650 (c) a timber resource supporting an annual cut of 21 billion board H20 1660 feet, and (d) 60 million acres of rangelands. Service at these H20 1670 levels of production and utilization will eventually require the H20 1680 construction of about 379,900 miles of new roads and 6,000 miles of new H20 1690 trails, along with the reconstruction to higher standards of about 105,000 H20 1700 miles of roads and 10,500 miles of trails. About 26,500 miles H20 1710 of existing trails will be replaced in service by the construction of H20 1720 new roads. About 80 percent of these long-range requirements should be H20 1730 met by the year 2000. Program proposals for forest development H20 1740 roads and trails for the 10-year period 1963-1972 are as follows: H20 1750 _1._ Complete the construction and reconstruction of about 79,400 H20 1760 miles of multiple-purpose roads and 8,000 miles of trails. This constitutes H20 1770 about 17 percent of the long-range requirements for these facilities. H20 1780 Approximately 40 percent of the value of the work on H20 1790 roads for access to timber which are planned for this period will be constructed H20 1800 by purchasers of National Forest timber, but paid for by H20 1810 the Government through adjustment of stumpage prices. _2._ Provide H20 1820 maintenance to full standards on the 268,900 miles of existing access H20 1830 roads and trails and on the new roads and trails constructed during H20 1840 the period. #LAND ADJUSTMENT, LAND PURCHASE, LAND USE# Within the H20 1850 units in the National Forest System the pattern of land ownership H20 1860 is quite irregular. In some units, National Forest ownership is well H20 1870 blocked together. In many others, the previous patenting of land H20 1880 under the public land laws, or the way in which land was available for H20 1890 purchase, resulted in a scattered pattern of ownership. Within H20 1900 exterior boundaries of National Forests and National Grasslands, H20 1910 there are about 40,000,000 acres in non-Federal ownership. One consequence H20 1920 is the occurrence of occasional conflicts because private owners H20 1930 of some inholdings object to public programs of use on neighboring H20 1940 National Forest or other Federal land, or because such ownerships are H20 1950 developed for uses that are not compatible with use for the public H20 1960 of neighboring National Forest land. Some privately held inholdings H20 1970 are a source of direct damage to these Federal lands. And some, which H20 1980 are suitable for tree growing and for other National Forest purposes, H20 1990 are unmanaged or in need of expensive rehabilitation, and are contributing H20 2000 nothing to the economy; there are no reasonable prospects H20 2010 that these conditions will be corrected or changed. Lands in this last H20 2020 category are situated largely in the mountainous portions of the Eastern H20 2030 States. The long-range objective is to bring about consolidation H20 2040 of ownership through use of land exchange authority and through H20 2050 purchase on a moderate scale of inholdings which comprise key tracts H20 2060 for recognized National Forest programs such as recreation development, H20 2070 or which are a source of damage to lands in National Forests H20 2080 and National Grasslands. H21 0010 Strategy and tactics of the U&S& military forces are now H21 0020 undergoing one of the greatest transitions in history. The change of H21 0030 emphasis from conventional-type to missile-type warfare must be made H21 0040 with care, mindful that the one type of warfare cannot be safely neglected H21 0050 in favor of the other. Our military forces must be capable of H21 0060 contending successfully with any contingency which may be forced upon H21 0070 us, from limited emergencies to all-out nuclear general war. #FORCES H21 0080 AND MILITARY PERSONNEL STRENGTH.#- This budget will provide in H21 0090 the fiscal year 1961 for the continued support of our forces at approximately H21 0100 the present level- a year-end strength of 2,489,000 men and H21 0110 women in the active forces. The forces to be supported include an Army H21 0120 of 14 divisions and 870,000 men; a Navy of 817 active ships and H21 0130 619,000 men; a Marine Corps of 3 divisions and 3 air wings with 175,000 H21 0140 men; and an Air Force of 91 combat wings and 825,000 men. H21 0150 If the reserve components are to serve effectively in time of war, H21 0160 their basic organization and objectives must conform to the changing H21 0170 character and missions of the active forces. Quality and combat readiness H21 0180 must take precedence over mere numbers. Under modern conditions, H21 0190 this is especially true of the ready reserve. I have requested the H21 0200 Secretary of Defense to reexamine the roles and missions of the reserve H21 0210 components in relation to those of the active forces and in the light H21 0220 of the changing requirements of modern warfare. Last year H21 0230 the Congress discontinued its previously imposed minimum personnel strength H21 0240 limitations on the Army Reserve. Similar restrictions on the H21 0250 strength of the Army National Guard contained in the 1960 Department H21 0260 of Defense Appropriation Act should likewise be dropped. I strongly H21 0270 recommend to the Congress the avoidance of mandatory floors on H21 0280 the size of the reserve components so that we may have the flexibility H21 0290 to make adjustments in keeping with military necessity. I again H21 0300 proposed a reduction in the Army National Guard and Army Reserve- H21 0310 from their present strengths of 400,000 and 300,000, respectively, H21 0320 to 360,000 and 270,000 by the end of the fiscal year 1961. These H21 0330 strengths are considered adequate to meet the essential roles and missions H21 0340 of the reserves in support of our national security objectives. H21 0350 #MILITARY PERSONNEL COSTS.#- About 30% of the expenditures for H21 0360 the Department of Defense in 1961 are for military personnel costs, H21 0370 including pay for active, reserve, and retired military personnel. These H21 0380 expenditures are estimated to be $12.1 billion, an increase of $187 H21 0390 million over 1960, reflecting additional longevity pay of career personnel, H21 0400 more dependents, an increased number of men drawing proficiency H21 0410 pay, and social security tax increases (effective for the full year H21 0420 in 1961 compared with only 6 months in 1960). Retired pay costs are H21 0430 increased by $94 million in 1961 over 1960, partly because of a substantial H21 0440 increase in the number of retired personnel. These increased costs H21 0450 are partially offset by a decrease of $56 million in expenditures H21 0460 for the reserve forces, largely because of the planned reduction in strength H21 0470 of the Army Reserve components during 1961. Traditionally, H21 0480 rates of pay for retired military personnel have been proportionate H21 0490 to current rates of pay for active personnel. The 1958 military H21 0500 pay act departed from this established formula by providing for a 6% H21 0510 increase rather than a proportionate increase for everyone retired prior H21 0520 to its effective date of June 1, 1958. I endorse pending legislation H21 0530 that will restore the traditional relationship between retired and H21 0540 active duty pay rates. #OPERATION AND MAINTENANCE.#- Expenditures H21 0550 for operating and maintaining the stations and equipment of the Armed H21 0560 Forces are estimated to be $10.3 billion in 1961, which is $184 H21 0570 million more than in 1960. The increase stems largely from the growing H21 0580 complexity of and higher degree of maintenance required for newer weapons H21 0590 and equipment. A substantial increase is estimated in the H21 0600 cost of operating additional communications systems in the air defense H21 0610 program, as well as in all programs where speed and security of communications H21 0620 are essential. Also, the program for fleet modernization H21 0630 will be stepped up in 1961 causing an increase in expenditures. Further H21 0640 increases arise from the civilian employee health program enacted H21 0650 by the Congress last year. Other factors increasing operating H21 0660 costs include the higher unit cost of each flying hour, up 11% in two H21 0670 years, and of each steaming hour, up 15%. In total, these increases H21 0680 in operating costs outweigh the savings that result from declining H21 0690 programs and from economy measures, such as reduced numbers of units H21 0700 and installations, smaller inventories of major equipment, and improvements H21 0710 in the supply and distribution systems of the Armed Forces. H21 0720 In the budget message for 1959, and again for 1960, I recommended H21 0730 immediate repeal of section 601 of the Act of September 28, 1951 H21 0740 (65 Stat& 365). This section prevents the military departments and H21 0750 the Office of Civil and Defense Mobilization from carrying out certain H21 0760 transactions involving real property unless they come into agreement H21 0770 with the Committees on Armed Services of the Senate and the House H21 0780 of Representatives. As I have stated previously, the Attorney H21 0790 General has advised me that this section violates fundamental constitutional H21 0800 principles. Accordingly, if it is not repealed by the Congress H21 0810 at its present session, I shall have no alternative thereafter but H21 0820 to direct the Secretary of Defense to disregard the section unless H21 0830 a court of competent jurisdiction determines otherwise. Basic H21 0840 long-line communications in Alaska are now provided through Federal H21 0850 facilities operated by the Army, Air Force, and Federal Aviation H21 0860 Agency. The growing communications needs of this new State can best H21 0870 be met, as they have in other States, through the operation and development H21 0880 of such facilities by private enterprise. Legislation has already H21 0890 been proposed to authorize the sale of these Government-owned H21 0900 systems in Alaska, and its early enactment is desirable. #PROCUREMENT, H21 0910 RESEARCH, AND CONSTRUCTION.#- Approximately 45% of the expenditures H21 0920 for the Department of Defense are for procurement, research, H21 0930 development, and construction programs. In 1961, these expenditures H21 0940 are estimated at $18.9 billion, compared to $19.3 billion in 1960. The H21 0950 decreases, which are largely in construction and in aircraft procurement, H21 0960 are offset in part by increases for research and development and H21 0970 for procurement of other military equipment such as tanks, vehicles, H21 0980 guns, and electronic devices. Expenditures for shipbuilding are estimated H21 0990 at about the same level as in 1960. New obligational authority H21 1000 for 1961 recommended in this budget for aircraft procurement (excluding H21 1010 amounts for related research and construction) totals $4,753 H21 1020 million, which is $1,390 million below that enacted for 1960. On the H21 1030 other hand, the new authority of $3,825 million proposed for missile H21 1040 procurement (excluding research and construction) in 1961 is $581 million H21 1050 higher than for 1960. These contrasting trends in procurement reflect H21 1060 the anticipated changes in the composition and missions of our Armed H21 1070 Forces in the years ahead. The Department of Defense appropriation H21 1080 acts for the past several years have contained a rider which H21 1090 limits competitive bidding by firms in other countries on certain H21 1100 military supply items. As I have repeatedly stated, this provision is H21 1110 much more restrictive than the general law, popularly known as the Buy H21 1120 American Act. I urge once again that the Congress not reenact H21 1130 this rider. The task of providing a reasonable level of military H21 1140 strength, without endangering other vital aspects of our security, H21 1150 is greatly complicated by the swift pace of scientific progress. The H21 1160 last few years have witnessed what have been perhaps the most rapid advances H21 1170 in military technology in history. Some weapons systems have H21 1180 become obsolescent while still in production, and some while still under H21 1190 development. Furthermore, unexpectedly rapid progress or a H21 1200 technological break-through on any one weapon system, in itself, often H21 1210 diminishes the relative importance of other competitive systems. This H21 1220 has necessitated a continuous review and reevaluation of the defense H21 1230 program in order to redirect resources to the newer and more important H21 1240 weapons systems and to eliminate or reduce effort on weapons systems H21 1250 which have been overtaken by events. Thus, in the last few years, a H21 1260 number of programs which looked very promising at the time their development H21 1270 was commenced have since been completely eliminated. For example, H21 1280 the importance of the Regulus /2,, a very promising aerodynamic H21 1290 ship-to-surface missile designed to be launched by surfaced submarines, H21 1300 was greatly diminished by the successful acceleration of the much more H21 1310 advanced Polaris ballistic missile launched by submerged submarines. H21 1320 Another example is the recent cancellation of the ~F-108, H21 1330 a long-range interceptor with a speed three times as great as the speed H21 1340 of sound, which was designed for use against manned bombers in the H21 1350 period of the mid-1960's. The substantial progress being made in ballistic H21 1360 missile technology is rapidly shifting the main threat from manned H21 1370 bombers to missiles. Considering the high cost of the ~F-108 H21 1380 system- over $4 billion for the force that had been planned- and H21 1390 the time period in which it would become operational, it was decided to H21 1400 stop further work on the project. Meanwhile, other air defense forces H21 1410 are being made effective, as described later in this message. H21 1420 The size and scope of other important programs have been reduced from H21 1430 earlier plans. Notable in this category are the Jupiter and Thor H21 1440 intermediate range ballistic missiles, which have been successfully developed, H21 1450 produced, and deployed, but the relative importance of which H21 1460 has diminished with the increasing availability of the Atlas intercontinental H21 1470 ballistic missile. The impact of technological factors H21 1480 is also illustrated by the history of the high-energy fuel program. H21 1490 This project was started at a time when there was a critical need for H21 1500 a high-energy fuel to provide an extra margin of range for high performance H21 1510 aircraft, particularly our heavy bombers. Continuing technical H21 1520 problems involved in the use of this fuel, coupled with significant H21 1530 improvements in aircraft range through other means, have now raised serious H21 1540 questions about the value of the high-energy fuel program. As H21 1550 a result, the scope of this project has been sharply curtailed. H21 1560 These examples underscore the importance of even more searching evaluations H21 1570 of new major development programs and even more penetrating and H21 1580 far-ranging analyses of the potentialities of future technology. The H21 1590 cost of developing a major weapon system is now so enormous that the H21 1600 greatest care must be exercised in selecting new systems for development, H21 1610 in determining the most satisfactory rate of development, and in H21 1620 deciding the proper time at which either to place a system into production H21 1630 or to abandon it. #STRATEGIC FORCES.#- The deterrent power H21 1640 of our Armed Forces comes from both their nuclear retaliatory capability H21 1650 and their capability to conduct other essential operations in any H21 1660 form of war. The first capability is represented by a combination H21 1670 of manned bombers, carrier-based aircraft, and intercontinental and intermediate H21 1680 range missiles. The second capability is represented by our H21 1690 deployed ground, naval, and air forces in essential forward areas, together H21 1700 with ready reserves capable of effecting early emergency reinforcement. H21 1710 The Strategic Air Command is the principal element H21 1720 of our long-range nuclear capability. One of the important and difficult H21 1730 decisions which had to be made in this budget concerned the role H21 1740 of the ~B-70, a long-range supersonic bomber. This aircraft, which H21 1750 was planned for initial operational use about 1965, would be complementary H21 1760 to but likewise competitive with the four strategic ballistic missile H21 1770 systems, all of which are scheduled to become available earlier. H21 1780 The first Atlas ~ICBM's are now operational, the first two H21 1790 Polaris submarines are expected to be operational this calendar year, H21 1800 and the first Titan ~ICBM's next year. The Minuteman solid-fueled H21 1810 ~ICBM is planned to be operational about mid-1963. By H21 1820 1965, several or all of these systems will have been fully tested and H21 1830 their reliability established. Thus, the need for the ~B-70 H21 1840 as a strategic weapon system is doubtful. However, I am recommending H21 1850 that development work on the ~B-70 air-frame and engines be continued. H21 1860 It is expected that in 1963 two prototype aircraft will be available H21 1870 for flight testing. By that time we should be in a much better H21 1880 position to determine the value of that aircraft as a weapon system. H21 1890 I am recommending additional acquisitions of the improved version H21 1900 of the ~B-52 (the ~B-52~H with the new turbofan engine) H21 1910 and procurement of the ~B-58 supersonic medium bomber, together with H21 1920 the supporting refueling tankers in each case. These additional modern H21 1930 bombers will replace some of the older ~B-47 medium bombers; H21 1940 one ~B-52 can do the work of several ~B-47's which it will replace. H21 1950 Funds are also included in this budget to continue the equipping H21 1960 of the ~B-52 wings with the Hound Dog air-to-surface missile. H21 1970 In the coming fiscal year additional quantities of Atlas, Titan, H21 1980 and Polaris missiles also will be procured. H22 0010 Purchase authorizations will include provisions relating to the sale H22 0020 and delivery of commodities, including the classes, types and/or varieties H22 0030 of food grain, the time and circumstances of deposit of the rupees H22 0035 accruing H22 0040 from such sale, and other relevant matters. _3._ The United States H22 0050 recognizes the desire of India to accumulate, as quickly as possible, H22 0060 a substantial part of the one million ton reserve stock of rice H22 0070 provided for in this Agreement to assist in stabilizing the internal H22 0080 markets for this commodity in India. Under this Agreement the first H22 0090 annual review of rice availabilities will be made in August 1960. H22 0100 At that time consideration will be given to whether in the light of H22 0110 the United States supplies of rice available for Title /1, disposal, H22 0120 India's production, consumption and stocks of food grains, other H22 0130 imports from the United States and countries friendly to the United H22 0140 States, India's storage capacity, and other related factors, any H22 0150 increase would be possible in the portion of the total rice programmed H22 0160 which is currently planned for procurement during the first year. _4._ H22 0170 The two Governments agree that the issuance of purchase authorizations H22 0180 for wheat and rice providing for purchase after June 30, 1961, H22 0190 shall be dependent upon the determination by the United States H22 0200 Government that these commodities are in surplus supply and available H22 0210 under Title /1, of the Act at that time. The United States Government H22 0220 shall have the right to terminate the financing of further sales H22 0230 under this Agreement of any commodity if it determines at any time H22 0240 after June 30, 1961, that such action is necessitated by the existence H22 0250 of an international emergency. #ARTICLE /2, USES OF RUPEES# H22 0260 _1._ The two Governments agree that the rupees accruing to the Government H22 0270 of the United States of America as a consequence of sales H22 0280 made pursuant to this Agreement will be used by the Government of H22 0290 the United States of America, in such manner and order of priority H22 0300 as the Government of the United States of America shall determine, H22 0310 for the following purposes in the amounts shown: _(A)_ For United H22 0320 States expenditures under subsections (~a), (~b), (~d), (~e), H22 0330 (~f), (~h) through (~r) of Section 104 of the Act or under H22 0340 any of such subsections, the rupee equivalent of $200 million. _(B)_ H22 0350 For grant to the Government of India under subsection (~e) H22 0360 of Section 104 of the Act, the rupee equivalent of not more than $538 H22 0370 million for financing such projects to promote balanced economic development H22 0380 as may from time to time be mutually agreed. _(C)_ For loan H22 0390 to the Government of India under subsection (~g) of Section 104 H22 0400 of the Act, the rupee equivalent of not more than $538 million for H22 0410 financing such projects to promote balanced economic development as may H22 0420 be mutually agreed. The terms and conditions of the loan and other H22 0430 provisions will be set forth in a separate agreement by the two Governments. H22 0440 In the event that agreement is not reached on the use H22 0450 of the rupees for grant or loan purposes within six years from the date H22 0460 of this Agreement, the Government of the United States of America H22 0470 may use the local currency for any purposes authorized by Section H22 0480 104 of the Act. _2._ In the event the total of rupees accruing H22 0490 to the Government of the United States of America as a consequence H22 0500 of sales made pursuant to this Agreement is different from the rupee H22 0510 equivalent of $1,276 million, the amounts available for the purposes H22 0520 specified in paragraph 1, Article /2, will be adjusted proportionately. H22 0530 #ARTICLE /3, DEPOSIT OF RUPEES# The deposit of rupees to H22 0540 the account of the Government of the United States of America in payment H22 0550 for the commodities and for ocean transportation costs financed H22 0560 by the Government of the United States of America (except excess H22 0570 costs resulting from the requirement that United States flag vessels H22 0580 be used) shall be made at the rate of exchange for United States dollars H22 0590 generally applicable to import transactions (excluding imports granted H22 0600 a preferential rate) in effect on the dates of dollar disbursement H22 0610 by United States banks, or by the Government of the United States H22 0620 of America, as provided in the purchase authorizations. #ARTICLE H22 0630 /4, GENERAL UNDERTAKINGS# _1._ The Government of India agrees H22 0640 that it will take all possible measures to prevent the resale or H22 0650 transshipment to other countries or the use for other than domestic purposes H22 0660 (except where such resale, transshipment or use is specifically H22 0670 approved by the Government of the United States of America), of H22 0680 the surplus agricultural commodities purchased pursuant to the provisions H22 0690 of this Agreement, and to assure that the purchase of such commodities H22 0700 does not result in increased availability of these or like commodities H22 0710 for export from India. _2._ The two Governments agree that H22 0720 they will take reasonable precautions to assure that all sales or purchases H22 0730 of surplus agricultural commodities, pursuant to the Agreement H22 0740 will not displace usual marketings of the United States of America H22 0750 in these commodities, or unduly disrupt world prices of agricultural H22 0760 commodities or normal patterns of commercial trade with friendly countries. H22 0770 _3._ In carrying out this Agreement, the two Governments H22 0780 will seek to assure, to the extent practicable, conditions of commerce H22 0790 permitting private traders to function effectively and will use their H22 0800 best endeavors to develop and extend continuous market demand for agricultural H22 0810 commodities. _4._ The Government of India agrees to H22 0820 furnish, upon request of the United States of America, information H22 0830 on the progress of the program, particularly with respect to the arrival H22 0840 and condition of commodities and the provisions for the maintenance H22 0850 of usual marketings, and information relating to exports of the same H22 0860 or like commodities. #ARTICLE /5, CONSULTATION# The two Governments H22 0870 will, upon the request of either of them, consult regarding any H22 0880 matter relating to the application of this Agreement or to the operation H22 0890 of arrangements carried out pursuant to this Agreement. #ARTICLE H22 0900 /6, ENTRY INTO FORCE# The agreement shall enter into force upon H22 0910 signature. IN WITNESS WHEREOF, the respective representatives, H22 0920 duly authorized for the purpose, have signed the present Agreement. H22 0930 DONE at Washington in duplicate this fourth day of H22 0940 May 1960. FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA: H22 0950 DWIGHT D& EISENHOWER FOR THE GOVERNMENT H22 0960 OF INDIA: S& K& PATIL H22 0970 EXCELLENCY: I have the honor to refer to the Agricultural H22 0980 Commodities Agreement signed today between the Government of the H22 0990 United States of America and the Government of India (hereinafter H22 1000 referred to as the Agreement) and, with regard to the rupees accruing H22 1010 to uses indicated under Article /2, of the Agreement, to state H22 1020 that the understanding of the Government of the United States of H22 1030 America is as follows: _1._ With respect to Article /2,, Paragraph H22 1040 1 (~a) of the Agreement: _(/1,)_ The Government H22 1050 of India will provide facilities for the conversions of the rupee equivalent H22 1060 of $4 million (up to a maximum of $1 million per year) accruing H22 1070 under the subject agreement for agricultural market development purposes H22 1080 into currencies other than United States dollars on request of H22 1090 the Government of the United States of America. This facility is H22 1100 needed for the purpose of securing funds to finance agricultural market H22 1110 development activities of the Government of the United States in H22 1120 other countries. The Government of the United States of America H22 1130 may utilize rupees in India to pay for goods and services, including H22 1140 international transportation needed in connection with market development H22 1150 and other agricultural projects and activities in India and H22 1160 other countries. _(/2,)_ The rupee equivalent of $63.8 million, H22 1170 but not more than 5 percent of the currencies received under the Agreement H22 1180 will be used for loans to be made by the Export-Import Bank H22 1190 of Washington under Section 104 (~e) of the Agricultural Trade H22 1200 Development and Assistance Act, as amended (hereinafter referred to H22 1210 as the Act), and for administrative expenses of the Export-Import H22 1220 Bank of Washington in India incident thereto. It is understood that: H22 1230 _(A)_ Such loans under Section 104 (~e) of the Act will H22 1240 be made to United States business firms and branches, subsidiaries, H22 1250 or affiliates of such firms in India for business development and trade H22 1260 expansion in India and to United States firms and to Indian firms H22 1270 for the establishment of facilities for aiding in the utilization, H22 1280 distribution, or otherwise increasing the consumption of and markets H22 1290 for United States agricultural products. In the event the rupees set H22 1300 aside for loans under Section 104 (~e) of the Act are not advanced H22 1310 within six years from the date of this Agreement because the Export-Import H22 1320 Bank of Washington has not approved loans or because proposed H22 1330 loans have not been mutually agreeable to the Export-Import Bank H22 1340 of Washington and the Department of Economic Affairs of the Government H22 1350 of India, the Government of the United States of America H22 1360 may use the rupees for any purpose authorized by Section 104 of the H22 1370 Act. _(B)_ Loans will be mutually agreeable to the Export-Import H22 1380 Bank of Washington and the Government of India acting through H22 1390 the Department of Economic Affairs of the Ministry of Finance. The H22 1400 Secretary, Department of Economic Affairs, or his designate, will H22 1410 act for the Government of India, and the President of the Export-Import H22 1420 Bank of Washington, or his designate, will act for the Export-Import H22 1430 Bank of Washington. _(C)_ Upon receipt of an application H22 1440 which the Export-Import Bank is prepared to consider, the Export-Import H22 1450 Bank will inform the Department of Economic Affairs H22 1460 of the identity of the applicant, the nature of the proposed business, H22 1470 the amount of the proposed loan, and the general purposes for which the H22 1480 loan proceeds would be expended. _(D)_ When the Export-Import H22 1490 Bank is prepared to act favorably upon an application, it will so notify H22 1500 the Department of Economic Affairs and will indicate the interest H22 1510 rate and the repayment period which would be used under the proposed H22 1520 loan. The interest rate will be similar to those prevailing in India H22 1530 on comparable loans and the maturities will be consistent with the H22 1540 purposes of the financing. _(E)_ Within sixty days after the receipt H22 1550 of notice that the Export-Import Bank is prepared to act favorably H22 1560 upon an application the Department of Economic Affairs will indicate H22 1570 to the Export-Import Bank whether or not the Department of H22 1580 Economic Affairs has any objection to the proposed loan. Unless within H22 1590 the sixty-day period the Export-Import Bank has received such H22 1600 a communication from the Department of Economic Affairs it shall be H22 1610 understood that the Department of Economic Affairs has no objection H22 1620 to the proposed loan. When the Export-Import Bank approves or declines H22 1630 the proposed loan, it will notify the Department of Economic H22 1640 Affairs. _2._ With respect to Article /2,, paragraphs 1 (~b) H22 1645 and 1 (~c): H22 1650 Uses of Section 104 (~e) and Section 104(~g) rupees: The H22 1660 Government of India will use the amount of rupees granted or loaned H22 1670 to it by the United States pursuant to paragraphs 1(~b) and 1(~c) H22 1680 for projects to promote economic development with emphasis upon H22 1690 the agricultural sector including food reserve storage structures and H22 1700 facilities as may from time to time be agreed upon by the authorized H22 1710 representatives of the United States and the authorized representatives H22 1720 of the Government of India, in the following sectors: _A._ H22 1730 Agriculture. _B._ Industry, including the production of fertilizer, H22 1740 irrigation and power, transport and communications, and credit institutions. H22 1750 _C._ Public health, education, and rehabilitation. _D._ H22 1760 Other economic development projects consistent with the purposes H22 1770 of Sections 104 (~e) and 104 (~g) of the Act. The Government H22 1780 of India further agrees in cooperation with the Government of the H22 1790 United States, to coordinate the use of grant and loan funds provided H22 1800 for in paragraphs 1 H22 1810 (~b) and 1 (~c) of Article /2, with such direct H22 1820 dollar assistance as may be made available by the Government of H22 1830 the United States of America, so that both sources of financing may H22 1840 be channeled to specific and clearly identifiable economic development H22 1850 programs and projects. _3._ It is agreed that any goods delivered H22 1860 or services rendered after the date of this agreement for projects H22 1870 within categories ~A, ~B, and ~C under paragraph 2 above which H22 1880 may later be approved by the United States will be eligible for financing H22 1890 from currency granted or loaned to the Government of India. H22 1900 _4._ With regard to the rupees accruing to uses indicated under H22 1910 Article /2, of the Agreement, the understanding of the Government H22 1920 of the United States of America, with respect to both paragraphs 1 H22 1930 (~b) and 1 (~c) of Article /2, is as follows: _(/1,)_ H22 1940 Local currency will be advanced or reimbursed to the Government of India H22 1950 for financing agreed projects under paragraphs 1 (~b) and 1 (~c) H22 1960 of Article /2, of the Agreement upon the presentation of such H22 1970 documentation as the United States may specify. _(/2,)_ The H22 1980 Government of India shall maintain or cause to be maintained books and H22 1990 records adequate to identify the goods and services financed for agreed H22 2000 projects pursuant to paragraphs 1 (~b) and 1 (~c) of Article H22 2010 /2, of the Agreement, to disclose the use thereof in the projects H22 2020 and to record the progress of the projects (including the cost thereof). H22 2030 The books and records with respect to each project shall be maintained H22 2040 for the duration of the project, or until the expiration of three H22 2050 years after final disbursement for the project has been made by the United H22 2060 States, whichever is later. The two Governments shall have the H22 2070 right at all reasonable times to examine such books and records and H22 2080 all other documents, correspondence, memoranda and other records involving H22 2090 transactions relating to agreed projects. The Government of India H22 2100 shall enable the authorized representatives of the United States H22 2110 to observe and review agreed projects and the utilization of goods and H22 2120 services financed under the projects, and shall furnish to the United H22 2130 States all such information as it shall reasonably request concerning H22 2140 the above-mentioned matters and the expenditures related thereto. H23 0010 This broad delegation leaves within our discretion (subject to the always-present H23 0020 criterion of the public interest) both the determination H23 0030 of what degree of interference shall be considered excessive, and the H23 0040 methods by which such excessive interference shall be avoided. _3._ H23 0050 The present proceeding is concerned with the standard broadcast (~AM) H23 0060 band, from 540 kc& to 1600 kc&. Whenever two or more standard H23 0070 broadcast stations operate simultaneously on the same or closely adjacent H23 0080 frequencies, each interferes to some extent with reception of H23 0090 the other. The extent of such interference- which may be so slight H23 0100 as to be undetectable at any point where either of the stations renders H23 0110 a usable signal, or may be so great as to virtually destroy the service H23 0120 areas of both stations- depends on many factors, among the principal H23 0130 ones being the distance between the stations, their respective H23 0140 radiated power, and, of particular significance here, . H23 0150 Other factors playing a part in the the extent of ~AM service H23 0160 and interference are the frequency involved, the time of year, the position H23 0170 of the year in the sunspot cycle, ground conductivity along H23 0180 the H23 0190 transmission path, atmospheric and manmade noise, and others. With the H23 0200 existence of these many factors, some of them variable, it obviously H23 0210 has never been and is not now possible for the Commission to make assignments H23 0220 of ~AM stations on a case-to-case basis which will insure H23 0230 against any interference in any circumstances. Rather, such assignments H23 0240 are made, as they must be, on the basis of certain overall rules H23 0250 and standards, representing to some extent a statistical approach to H23 0260 the problem, taking into account for each situation some of the variables H23 0270 (e&g&, power and station separations) and averaging out others H23 0280 in order to achieve the balance which must be struck between protection H23 0290 against destructive interference and the assignment of a number of H23 0300 stations large enough to afford optimum radio service to the Nation. H23 0310 An example of the overall standards applied is the 20-to-1 ratio established H23 0320 for the determination of that degree of cochannel interference H23 0330 which is regarded as objectionable. By this standard, it is determined H23 0340 that where two stations operating on the same frequency are involved, H23 0350 objectionable interference from station ~A exists at any point within H23 0360 the service area of station ~B where station ~A's signal H23 0370 is of an intensity one-twentieth or more of the strength of station ~B's H23 0380 signal at that point. _4._ The 20-to-1 ratio for cochannel H23 0390 interference embodies one of the fundamental limiting principles which H23 0400 we must always take into account in ~AM assignments and allocations- H23 0410 that signals from a particular station are potential sources H23 0420 of objectionable interference over an area much greater than that within H23 0430 which they provide useful service. A second fundamental principle H23 0440 is that involved particularly in the present proceeding- the difference H23 0450 between nighttime and daytime propagation conditions with respect H23 0460 to the standard broadcast frequencies. This is a phenomenon familiar H23 0480 to all radio listeners, resulting from reflection of skywave signals at H23 0490 night from the ionized layer in the upper atmosphere known as the ionosphere. H23 0500 All ~AM stations radiate both skywave and groundwave signals, H23 0510 at all hours; but during the middle daytime hours these skywave H23 0520 radiations are not reflected in any substantial quantity, and during H23 0530 this portion of the day both skywave service and skywave interference H23 0540 are, in general, negligible. But during nighttime hours the skywave H23 0550 radiations are reflected from the ionosphere, thereby creating the possibility H23 0560 of one station's rendering service, via skywave, at a much H23 0570 greater distance than it can through its groundwave signal, and at the H23 0580 same time vastly complicating the interference problem because of the H23 0590 still greater distance over which these skywave signals may cause interference H23 0600 to the signals of stations on the same and closely adjacent H23 0610 frequencies. Because of the difference between daytime and nighttime H23 0620 propagation conditions, it has been necessary to evolve different allocation H23 0630 structures for daytime and nighttime broadcasting in the ~AM H23 0640 band, with many more stations operating during the day than at night. H23 0650 _5._ It was recognized years ago that the transition from daytime H23 0660 to nighttime propagation conditions, and vice versa, is not an instantaneous H23 0670 process, but takes place over periods of time from roughly H23 0680 2 hours before sunset until about 2 hours after sunset, and again from H23 0690 roughly 2 hours before sunrise until some 2 hours after sunrise. During H23 0700 the period of about 4 hours around sunset, skywave transmission conditions H23 0710 are building up until full nighttime conditions prevail; during H23 0720 the same period around sunrise, skywave transmission is declining, H23 0730 until at about 2 hours after sunrise it reaches a point where it becomes H23 0740 of little practical significance. However, in this case as elsewhere H23 0750 it was necessary to arrive at a single standard to be applied to H23 0760 all situations, representing an averaging of conditions, and thus to H23 0770 fix particular points in time which would be considered the dividing points H23 0780 between daytime and nighttime conditions. It was determined that H23 0790 the hours of sunrise and sunset, respectively, should be used for this H23 0800 purpose. Accordingly, the 1938-39 rules adopted these hours as limitations H23 0810 upon the operation of daytime stations. Class /2, stations H23 0820 operating on clear channels are required to cease operation or operate H23 0830 under nighttime restrictions beginning either at local sunset (for daytime H23 0840 class /2, stations) or sunset at the location of the dominant H23 0850 class /1, station where located west of the class /2, station (for H23 0860 limited-time class /2, stations). The same restrictions apply H23 0870 after local sunset in the case of class /3, stations operating on H23 0880 regional channels, which after that time are required to operate under H23 0890 nighttime restrictions in order to protect each other. With respect H23 0900 to nighttime assignments, the degree of skywave service and interference H23 0910 is determined by skywave curves (figs& 1 and 2 of sec& 3.190 H23 0920 of the rules) giving average skywave values. These curves were derived H23 0930 by an analysis of extensive skywave measurement data. It was recognized H23 0940 that skywave signals, because of their reflected nature, are of great H23 0950 variability and subject to wide fluctuations in strength. For this H23 0960 reason, the more uncertain skywave service was denominated "secondary" H23 0970 in our rules, as compared to the steadier, more reliable groundwave H23 0980 "primary service", and, for both skywave service and skywave H23 0990 interference, signal strength is expressed in terms of percentage of H23 1000 time a particular signal-intensity level is exceeded- 50 percent of H23 1010 the time for skywave service, 10 percent of the time for skywave interference. H23 1020 #ALLOCATION POLICIES# _6._ As mentioned, the allocation H23 1030 of ~AM stations represents a balance between protection against H23 1040 interference and the provision of opportunity for an adequate number H23 1050 of stations. The rules and policies to be applied in this process of H23 1060 course must be based on objectives which represent what is to be desired H23 1070 if radio service is to be of maximum use to the Nation. Our objectives, H23 1080 as we have stated many times, are- _(1)_ To provide some H23 1090 service to all listeners; _(2)_ To provide as many choices of H23 1100 service to as many listeners as possible; _(3)_ To provide service H23 1110 of local origin to as many listeners as possible. Since broadcast H23 1120 frequencies are very limited in number, these objectives are to some H23 1130 extent inconsistent in that not all of them can be fully realized, and H23 1140 to the extent that each is realized, there is a corresponding reduction H23 1150 of the possibilities for fullest achievement of the others. Accordingly, H23 1160 the Commission has recognized that an optimum allocation pattern H23 1170 for one frequency does not necessarily represent the best pattern H23 1180 for other frequencies, and has assigned different frequencies for use H23 1190 by different classes of stations. Some 45 frequencies are assigned for H23 1200 use primarily by dominant or stations, designed to operate with adequate H23 1220 power and to provide service- both groundwave and (at night) skywave- H23 1230 over large areas and at great distances, being protected against H23 1240 interference to the degree necessary to achieve this objective. In dealing H23 1250 with these frequencies, the objective listed first above- provision H23 1260 of service to all listeners- was predominant; the other objectives H23 1270 were subordinated to it. The class /1, stations on these clear H23 1280 channels are protected to their 0.1-mv&/m& groundwave contours H23 1290 against daytime cochannel interference. With respect to skywave service H23 1300 rendered at night, class /1,- ~A stations are the only stations H23 1310 permitted to operate in the United States on clear channels specified H23 1320 for class /1,- ~A operation, and so render skywave service H23 1325 free H23 1330 from cochannel interference whereever they may be received; class H23 1340 /1,- ~B stations are protected at night to their 0.5-mv&/m& H23 1345 50-percent H23 1350 time skywave contours against cochannel interference. Since H23 1360 the provision of skywave service requires adequate freedom from interference, H23 1370 only class /1, stations are capable of rendering skywave service. H23 1380 But nighttime operation by stations of other classes of course H23 1390 entails skywave interference to groundwave service, interference which H23 1400 is substantial unless steps are taken to minimize it. _7._ With H23 1410 respect to other frequencies, these are designated as regional or local, H23 1420 and assigned for use by class /3, and class /4, stations, respectively, H23 1430 stations operating generally with lower power. In the allocation H23 1440 pattern worked out for these frequencies, the provision of long-range H23 1450 service has to some extent been subordinated to the other two objectives- H23 1460 assignment of multiple facilities, and assignment of stations H23 1470 in as many communities as possible. _8._ As mentioned, the primary H23 1480 allocation objective to be followed in the allocation of stations H23 1490 on clear channels is the provision of widespread service, free from H23 1500 destructive interference. During nighttime hours, because of the intense H23 1510 skywave propagation then prevailing, no large number of stations can H23 1520 be permitted to operate on one of these channels, if the wide area H23 1530 service for which these frequencies are assigned is to be rendered satisfactorily H23 1540 by the dominant stations which must be relied upon to render H23 1550 it. Therefore, under our longstanding allocation rules, on some of H23 1560 these channels no station other than the dominant (class /1,- ~A) H23 1570 station is permitted to operate at night, so that the /1,- ~A H23 1580 station can render service, interference free, wherever it can be received. H23 1590 On the remainder of the clear channels, the dominant (class H23 1600 /1,- ~B) stations are protected as described above, and the relatively H23 1610 small number of secondary (class /2,) stations permitted to operate H23 1620 on these channels at night are required to operate directionally H23 1630 and/or with reduced power so as to protect the class /1, stations. H23 1640 In the daytime, on the other hand, since skywave transmission is relatively H23 1650 inefficient, it is possible to assign a substantially larger number H23 1660 of stations on these channels. Additional class /2, assignments H23 1670 for daytime operation can be made without causing destructive interference H23 1680 to the class /1, stations or to each other, and by their operation H23 1690 provide additional service on these channels and additional local H23 1700 outlets for a large number of communities. Such additional daytime H23 1710 class /2, assignments are appropriate if optimum use is to be made H23 1720 of these frequencies, and the Commission has over the years made a large H23 1730 number of them. Similarly, on the regional channels many class /3, H23 1740 stations have been assigned either to operate daytime only or to operate H23 1750 nighttime with directional antennas and/or lower power. _9._ H23 1760 Essentially, the question presented for decision in the present Daytime H23 1770 Skywave proceeding is whether our decision [in 1938-1939] to H23 1780 assign stations on the basis of daytime conditions from sunrise to sunset, H23 1790 is sound as a basis for ~AM allocations, or whether, in the light H23 1800 of later developments and new understanding, skywave transmission H23 1810 is of such significance during the hours immediately before sunset and H23 1820 after sunrise that this condition should be taken into account, and H23 1830 some stations required to afford protection to other stations during these H23 1840 hours. #THE HISTORY OF THE PROCEEDING# _10._ The decision H23 1850 reached in 1938-39 was made after the accumulation of a large amount H23 1860 of data and thorough study thereof. Since then, there has been a notable H23 1870 increase in the number of stations and also the accumulation of additional H23 1880 data and the development of new techniques for using it, leading H23 1890 to a better understanding of propagation phenomena. In 1947, affidavits H23 1900 were filed with the Commission by various clear-channel stations H23 1910 alleging that extensive interference was being caused to the service H23 1920 areas of these stations during daylight hours, from class /2, stations H23 1930 whose signals were being reflected from the ionosphere so as to H23 1940 create skywave intereference. H24 0010 If you elect to use the Standard Deduction or the Tax Table, and H24 0020 later find you should have itemized your deductions, you may do so by H24 0030 filing an amended return within the time prescribed for filing a claim H24 0040 for refund. See , Page 135. The same H24 0050 is true if you have itemized your deductions and later decide you should H24 0060 have used the Standard Deduction or Tax Table. The words {amended H24 0070 return} should be plainly written across the top of such return. H24 0080 _WHEN AND WHERE TO FILE_ April 15 is usually the final date H24 0090 for filing income tax returns for most people because they use the calendar H24 0100 year ending on December 31. If you use a fiscal year, a year ending H24 0110 on the last day of any month other than December, your return is H24 0120 due on or before the 15th day of the 4th month after the close of your H24 0130 tax year. _SATURDAY, SUNDAY, OR HOLIDAY._ If the last day (due H24 0140 date) for performing {any} act for tax purposes, such as filing a H24 0150 return or making a tax payment, etc&, falls on Saturday, Sunday, H24 0160 or a legal holiday, you may perform that act on the next succeeding day H24 0170 which is not a Saturday, Sunday, or legal holiday. Since April 15, H24 0180 1962, is on Sunday your return for the calendar year 1961 will be H24 0190 timely filed if it is filed on or before Monday, April 16, 1962. H24 0200 {IF YOU MAIL A RETURN} or tax payment, you must place it H24 0210 in the mails in ample time to reach the district director on or before H24 0220 the due date. _DECLARATION OF ESTIMATED TAX._ If you were required H24 0230 to file a declaration of estimated tax for the calendar year 1961, H24 0240 it is not necessary to pay the fourth installment otherwise due on January H24 0250 15, 1962, if you file your income tax return Form 1040, and pay H24 0260 your tax in full for the calendar year 1961 by January 31, 1962. The H24 0270 filing of an original or amended declaration, otherwise due on January H24 0280 15, 1962, is also waived, if you file your Form 1040 for 1961 and H24 0290 pay the full tax by January 31, 1962. Farmers, for these purposes, H24 0300 have until February 15, 1962, to file Form 1040 and pay the tax in H24 0310 full for the calendar year 1961. Fiscal year taxpayers have until the H24 0320 last day of the first month following the close of the fiscal year (farmers H24 0330 until the 15th day of the 2d month). See Chapter 38. {Nonresident H24 0340 aliens living in Canada or Mexico} who earn wages in H24 0350 the United States may be subject to withholding of tax on their wages, H24 0360 the same as if they were citizens of the United States. Their H24 0370 United States tax returns are due April 16, 1962. However, if their H24 0380 United States income is not subject to the withholding of tax on wages, H24 0390 their returns are due June 15, 1962, if they use a calendar year, H24 0400 or the 15th day of the 6th month after the close of their fiscal year. H24 0410 _NONRESIDENT ALIENS IN PUERTO RICO._ If you are a nonresident H24 0420 alien and a resident of Puerto Rico, your return is also due June H24 0430 15, 1962, or the 15th day of the 6th month after the close of your fiscal H24 0440 year. {IF A TAXPAYER DIES,} the executor, administrator, H24 0450 or legal representative must file the final return for the decedent H24 0460 on or before the 15th day of the 4th month following the close of H24 0470 the deceased taxpayer's normal tax year. Suppose John Jones, who, H24 0480 for 1960, filed on the basis of a calendar year, died June 20, 1961. H24 0490 His return for the period January 1 to June 20, 1961, is due April H24 0500 16, 1962. The return for a decedent may also serve as a claim H24 0510 for refund of an overpayment of tax. In such a case, Form 1310 should H24 0520 be completed and attached to the return. This form may be obtained H24 0530 from the local office of your district director. {RETURNS H24 0540 OF ESTATES OR TRUSTS} are due on or before the 15th day of the H24 0550 4th month after the close of the tax year. _EXTENSIONS OF TIME FOR H24 0560 FILING._ Under unusual circumstances a resident individual may be H24 0570 granted an extension of time to file a return. You may apply for such H24 0580 an extension by filing Form 2688, , with the District Director of Internal Revenue H24 0600 for your district, or you may make your application in a letter. Your H24 0610 application must include the following information: (1) your reasons H24 0620 for requesting an extension, (2) whether you filed timely income tax H24 0630 returns for the 3 preceding years, and (3) whether you were required H24 0640 to file an estimated return for the year, and if so whether you did file H24 0650 and have paid the estimated tax payments on or before the due dates. H24 0660 Any failure to file timely returns or make estimated tax payments H24 0670 when due must be fully explained. Extensions are not granted as a matter H24 0680 of course, and the reasons for your request must be substantial. If H24 0690 you are unable to sign the request, because of illness or other good H24 0700 cause, another person who stands in close personal or business relationship H24 0710 to you may sign the request on your behalf, stating the reason H24 0720 why you are unable to sign. You should make any request for an extension H24 0730 early so that if it is refused, your return may still be on time. H24 0740 See also , below. _EXTENSIONS WHILE H24 0750 ABROAD._ Citizens of the United States who, on April 15, are not H24 0760 in the United States or Puerto Rico, are allowed an extension of H24 0770 time until June 15 for filing the return for the preceding calendar H24 0780 year. An extension of 2 months beyond the regular due date for filing H24 0790 is also available to taxpayers making returns for a fiscal year. _ALASKA H24 0800 AND HAWAII._ Taxpayers residing or traveling in Alaska are also H24 0810 allowed this extension of time for filing, but those residing or traveling H24 0820 in Hawaii are {not} allowed this automatic extension. H24 0830 {Military or Naval Personnel} on duty in Alaska or outside H24 0840 the United States and Puerto Rico are also allowed this automatic H24 0850 extension of time for filing their returns. {You must attach H24 0860 a statement} to your return, if you take advantage of this automatic H24 0880 extension, showing that you were in Alaska or were outside the United H24 0890 States or Puerto Rico on April 15 or other due date. _INTEREST H24 0900 ON UNPAID TAXES._ Interest at the rate of 6% a year must be paid H24 0910 on taxes that are not paid on or before their due date. Such interest H24 0920 must be paid even though an {extension of time for filing} is granted. H24 0930 _WHEN PAYMENT IS DUE._ If your computation on Form 1040 or H24 0940 Form 1040~A shows you owe additional tax, it should be remitted H24 0950 with your return unless you owe less than $1, in which case it is forgiven. H24 0960 If payment is by cash, you should ask for a receipt. If you file H24 0970 Form 1040~A and the District Director computes your tax, you H24 0980 will be sent a bill if additional tax is due. This bill should be paid H24 0990 within 30 days. _PAYMENT BY CHECK OR MONEY ORDER._ Whether the H24 1000 check is certified or uncertified, the tax is not paid until the check H24 1010 is paid. If the check is not good and the April 15 or other due date H24 1020 deadline elapses, additions to the tax may be incurred. Furthermore, H24 1030 a bad check may subject the maker to certain penalties. All checks H24 1040 and money orders should be made payable to . H24 1050 _REFUNDS._ An overpayment of income and social security taxes H24 1060 entitles you to a refund unless you indicate on the return that the H24 1070 overpayment should be applied to your succeeding year's estimated H24 1080 tax. {If you file Form 1040~A} and the District Director H24 1090 computes your tax, any refund to which you are entitled will be H24 1100 mailed to you. {If you file a Form 1040,} you should indicate H24 1110 in the place provided that there is an overpayment of tax and the H24 1120 amount you want refunded and the amount you want credited against your H24 1130 estimated tax. {Refunds of less than $1} will not be made H24 1140 unless you attach a separate application to your return requesting such H24 1150 a refund. _WHERE TO FILE._ Send your return to the Director H24 1160 of Internal Revenue for the district in which you have your legal residence H24 1170 or principal place of business. If you have neither a legal residence H24 1180 nor a principal place of business in any internal revenue district, H24 1190 your return should be filed with the District Director of Internal H24 1200 Revenue, Baltimore 2, Md&. If your principal place of abode H24 1210 for the tax year is outside the United States (including Alaska H24 1220 and Hawaii), Puerto Rico, or the Virgin Islands and you have no legal H24 1230 residence or principal place of business in any internal revenue H24 1240 district in the United States, you should file your return with the H24 1250 Office of International Operations, Internal Revenue Service, Washington H24 1260 25, D&C&. _ADJUSTED GROSS INCOME_ The deductions H24 1270 allowed in determining Adjusted Gross Income put all taxpayers on H24 1280 a comparable basis. It is the amount you enter on line 9, page 1 of Form H24 1290 1040. Some deductions are subtracted from Gross Income to determine H24 1300 Adjusted Gross Income. Other deductions are subtracted only H24 1310 from Adjusted Gross Income in arriving at Taxable Income. H24 1320 {TO COMPUTE YOUR ADJUSTED GROSS INCOME} you total all items H24 1330 of income. (See Chapter 6.) From this amount deduct the items indicated H24 1340 below. {Businessmen} deduct all ordinary and necessary H24 1350 expenses attributable to a trade or business. _RENTS OR ROYALTIES._ H24 1360 If you hold property for the production of rents or royalties you H24 1370 subtract, in computing Adjusted Gross Income, ordinary and necessary H24 1380 expenses and certain other deductions attributable to the property. H24 1390 (See Chapter 15.) {Outside salesmen} deduct all expenses H24 1400 attributable to earning a salary, commission, or other compensation. H24 1410 (See Chapter 10.) {Employees} deduct expenses of travel, H24 1420 meals and lodging while away from home in connection with the performance H24 1430 of their services as employees. They also deduct transportation H24 1440 expenses incurred in connection with the performance of services as employees H24 1450 even though they are not away from home. (See Chapter 12.) H24 1460 If your employer reimburses you for expenses incurred, you deduct such H24 1470 expenses if they otherwise qualify. (See Chapter 10.) {Sick H24 1480 pay,} if included in your Gross Income, is deducted in arriving H24 1490 at Adjusted Gross Income. If your sick pay is not included in your H24 1500 Gross Income, you may not deduct it. (See Chapter 9.) _INCOME H24 1510 FROM ESTATES AND TRUSTS._ If you are a life tenant, you deduct allowable H24 1520 depreciation and depletion. If you are an income beneficiary of H24 1530 property held in trust or an heir, legatee, or devisee, you may deduct H24 1540 allowable depreciation and depletion, if not deductible by the estate H24 1550 or trust. {Deductible losses on sales or exchanges} of H24 1560 property are allowable in determining your Adjusted Gross Income. (See H24 1570 Chapter 20.) _50% OF CAPITAL GAINS._ You also deduct 50% H24 1580 of the excess of net long-term capital gains over net short-term capital H24 1590 losses in determining Adjusted Gross Income. (See Chapter 24.) H24 1600 _OTHER DEDUCTIONS._ Certain other deductions are not allowed in H24 1610 determining Adjusted Gross Income. They may be claimed only by itemizing H24 1620 them on page 2 of Form 1040. These deductions may not be claimed H24 1630 if you elect to use the Standard Deduction or tax Table. (See H24 1640 Chapters 30 through 37.) #2. MINORS MINORS MUST ALSO FILE RETURNS H24 1650 IF THEY EARN $600 OR MORE DURING THE YEAR.# A MINOR IS subject H24 1660 to tax on his own earnings even though his parent may, under local H24 1670 law, have the right to them and might actually have received the money. H24 1680 His income is not required to be included in the return of his parent. H24 1690 {A MINOR CHILD IS ALLOWED A PERSONAL EXEMPTION} H24 1700 of $600 on his own return regardless of how much money he may earn. _EXEMPTION H24 1710 ALSO ALLOWED PARENT._ If your child is under 19 or is a H24 1720 student you may also claim an exemption for him if he qualifies as your H24 1730 dependent, even though he earns $600 or more. See Chapter 5. _EXAMPLE._ H24 1740 Your 16 year old son earned $720 in 1961. You spent $800 for H24 1750 his support. Since he had gross income of $600 or more, he must file H24 1760 a return in which he may claim an exemption deduction of $600. Since H24 1770 you contributed more than half of his support, you may also claim an H24 1780 exemption for him on your return. _HE MAY GET A TAX REFUND._ A H24 1790 minor who has gross income of less than $600 is entitled to a refund if H24 1800 income tax was withheld from his wages. Generally, the refund may be H24 1810 obtained by filing Form 1040~A accompanied by the withholding statement H24 1820 (Form ~W-2). If he had income other than wages subject to H24 1830 withholding, he may be required to file Form 1040. See Chapter 1. H24 1840 {IF YOUR CHILD WORKS FOR YOU,} you may deduct reasonable H24 1850 wages you paid to him for services he rendered in your business. H24 1860 You may deduct these payments even though your child uses the money to H24 1870 purchase his own clothing or other necessities which you are normally H24 1880 obligated to furnish him, and even though you may be entitled to his H24 1890 services. H25 0010 The one- or two-season hunt, of which there have been too many recently, H25 0020 may do more harm than good; for such programs raise hopes of assistance H25 0030 toward achieving excellence in scholarship and the arts which H25 0040 are dashed when the programs are discontinued; and they are dashed, H25 0050 no less, by lack of skill in making selections of men and women for development H25 0060 toward the highest reaches of the mind and spirit. For H25 0070 the making of selections on the basis of excellence requires that any H25 0080 foundation making the selections shall have available the judgments H25 0090 of a corps of advisors whose judgments are known to be good: such judgments H25 0100 can be known to be good only by the records of those selected, H25 0110 by records made subsequent to their selection over considerable periods H25 0120 of time. The central group of the Foundation's advisors H25 0130 are, at any one period of time, the members of our Advisory Board, H25 0140 consisting, now, of thirty-six men and women. They are chosen by the H25 0150 Foundation's Board of Trustees on the bases of their own first-rate H25 0160 accomplishments in their different fields of scholarship and the arts. H25 0170 Their locations in all parts of the United States, and their locations H25 0180 in the several kinds of educational and research institutions H25 0190 that are the principal homes of our intellectual and artistic strengths H25 0200 also are factors in the Trustees' minds. For this concept of an H25 0210 Advisory Board, ancillary to the Board of Trustees, we are indebted H25 0220 to the late President of Harvard University, A& Lawrence Lowell, H25 0230 a master of the subject of the structure of cultural institutions H25 0240 and their administration. That we had the wit and wisdom to adopt Mr& H25 0250 Lowell's concept and make it the base for our processes of selection H25 0260 is one reason why our selections have been, it may be said truly, H25 0270 pretty uniformly good. For in accordance with Mr& Lowell's H25 0280 concept of an advisory board, our selections are made by experienced H25 0290 selectors who give both constancy and consistency to our processes H25 0300 and our choices. And lest we should become too consistent, in the H25 0310 sense of becoming heedless of new fields of scholarship and new points H25 0320 of view in the arts, the Foundation's Board of Trustees maintains H25 0330 a trickle- not a flow!- of new members through the Advisory Board. H25 0340 Two committees of members of the Advisory Board constitute H25 0350 the committees of selection- one for the selection of Fellows H25 0360 from Canada, the United States, and the English-speaking Caribbean H25 0370 area and one for the selection of Fellows from the Latin American H25 0380 republics and the Republic of the Philippines. To the members H25 0390 of our Advisory Board, and most specially to its members who constitute H25 0400 our committees of selection, the Foundation is indebted for its H25 0410 successes of choice of Fellows. We are, as we know, utterly dependent H25 0420 on the quality of advice we get; and quality of advice, added to H25 0430 devotion to the Foundation's purposes and ideals, we do get from H25 0440 our Advisory Board in measures so full that they can be appreciated H25 0450 only by those of us who work here every day. But the facts about H25 0460 our Advisory Board and its members' duties are only one of several H25 0470 sets of facts about the quest for advice, both reliable and imaginative, H25 0480 on which to base our selections of Fellows. For example, the H25 0490 interest of past members of the Foundation's Advisory Board remains H25 0500 such that they place their knowledge and judgments at our disposal H25 0510 much as they had done when they were, formally, members of that Board. H25 0520 And, besides, there are a large number of scholars, artists, composers H25 0530 of music, novelists, poets, essayists, choreographers, lawyers, servants H25 0540 of government, and men of affairs- hundreds, indeed- who serve H25 0550 the Foundation well with the advice they give us freely and gratis H25 0560 out of their experience. To all, the Foundation gives the kind H25 0570 of thanks which are more than thanks: to them we are grateful beyond H25 0580 the possibility of conveying in words how grateful we are. #@# H25 0590 IT IS a truism of business that no business can be better than H25 0600 its board of directors and its top management. The same is true of H25 0610 every foundation. During the biennium reviewed in this Report, our H25 0620 Board of Trustees named able men, younger than the rest of us, to the H25 0630 Board and to top management to insure future continuance of the first-class H25 0640 administration of the Foundation's affairs: Dr& H25 0650 James Brown Fisk, physicist, President of the Bell Telephone Laboratories, H25 0660 was elected to the Board of Trustees. He is a member H25 0670 both of the National Academy of Sciences and of the American Philosophical H25 0680 Society; and he has served our country well as a scientific H25 0690 statesman on international commissions. Dr& Gordon N& H25 0700 Ray, Provost, Vice-President and Professor of English in the University H25 0710 of Illinois, was appointed Associate Secretary General. H25 0720 The Trustees of the Foundation appointed Dr& Ray to that position H25 0730 with the stated expectation that he would succeed the present Secretary H25 0740 General upon the latter's eventual retirement. Dr& Ray is H25 0750 a Fellow of the Foundation- appointed thrice to assist his studies H25 0760 of William Makepeace Thackeray and of H& G& Wells- and, H25 0770 before his appointment to the Foundation's executive staff, had been H25 0780 given our highest scholarly accolade, appointment to the Advisory Board. H25 0790 Referring further to the Foundation's officers, Dr& H25 0800 James F& Mathias, for eleven years our discerning colleague as H25 0810 Associate Secretary, was promoted to be Secretary. He is a historian, H25 0820 with the great merit of a historian's long view. Also appointed H25 0830 to the Foundation's staff, as Assistant Secretary, is Mr& H25 0840 J& Kellum Smith, Jr&. Mr& Smith, like the present Secretary H25 0850 General, is a lawyer; and lawyers- with the great virtues H25 0860 that they are trained to read "the fine print" carefully and are H25 0870 able out of professional experience to arrive at imaginative solutions H25 0880 to difficult problems in many fields- are indispensable even in a foundation H25 0890 office. The present Secretary General has been the H25 0900 Foundation's principal administrative officer continuously since the H25 0910 Foundation's establishment thirty-five years ago. But even he will H25 0920 not last indefinitely and the above-noted new arrangements are, quite H25 0930 simply, made to assure qualitative continuity in the Foundation's H25 0940 policies and practices. The effective recognition of excellence and H25 0950 its nurture has to be learned and is not learned in a day, nor even H25 0960 in a year. #@# WE ARE not given to lamentations, neither personally H25 0970 nor in these Reports. On the contrary, if this be an apocalyptic H25 0980 era as is commonly said, we see it as an era of opportunity. For, H25 0990 granting that there are great present-day problems to be solved, these H25 1000 problems make great demands; and by their demanding tend to create H25 1010 resources of men's minds and hearts which problems with easy answers H25 1020 do not bring forth. Of this, examples are legion: Pericles speaking H25 1030 his funeral oration in Ancient Greece's extremity after Thermopylae H25 1040 and making it a testament of freedom; Jefferson writing the H25 1050 Declaration of Independence amid the catastrophes of revolution; H25 1060 Christ preaching the Sermon on the Mount, close to his ultimate sacrifice; H25 1070 Shakespeare speaking with "the indescribable gusto of the H25 1080 Elizabethan voice"- Keats's words- in the days of the Spanish H25 1090 Armada's threats; Isaac Newton, at the age of twenty-three, H25 1110 industriously calculating logarithms "to two and fifty places" during H25 1120 the great plague year in England, 1665; Winston Churchill's H25 1130 Olympian, optimistic and resolute sayings when Britain stood alone H25 1140 against the armed forces of tyranny less than twenty years ago; the H25 1150 present-day explorations of outer space, answering age-old questions H25 1160 of science and philosophy, in the face of possible wars of extinction. H25 1170 , as the Roman poet, H25 1180 Virgil, declared with much more historical sense than most writers H25 1190 of today. It gives, indeed, cause for rejoicing to remember what many H25 1200 catastrophes of the past produced; and it is to be noted also that H25 1210 confidence should grow from remembering that great men often appeared H25 1220 in the past to turn local catastrophe into future good for all mankind. H25 1230 For example, out of the social evils of the English industrial H25 1240 revolution came the novels of Charles Dickens; and his genius H25 1250 moved his readers to seek solutions of those evils for all Western men- H25 1260 until today-, in the industrialized West, these social evils H25 1270 substantially do not exist. The solutions were not arrived at by any H25 1280 theoreticians of the Karl Marx stripe but by men of government- lawyers, H25 1290 most of them- and men of business. These were educated men, H25 1300 who, as Mr& Justice Holmes was fond of saying, formed their inductions H25 1310 out of experience under the burden of responsibility. That is, H25 1320 to put it realistically, they had to run their businesses at a profit, H25 1330 or they had to get the votes to get elected. Nevertheless, they made H25 1340 naught of Marx's prophecy that capitalism would never pay the "workers"- H25 1350 to use Marx's word- more than a subsistence wage, with H25 1360 the consequence that increased productivity must inevitably find its H25 1370 way into the capitalists' pockets with the result, in turn, that the H25 1380 gap between the rich and the poor would irrevocably widen and the misery H25 1390 of the poor increase. But as all understand who have eyes H25 1400 to see, nothing of the kind has happened; indeed, the contrary has H25 1410 happened. The gulf between the "rich" and the "poor" has narrowed, H25 1420 in the industrialized Western world, to the point that the word H25 1430 "poor" is hardly applicable. And the reason this could happen is H25 1440 clear: men of government, business men, lawyers and all who concerned H25 1450 themselves with the welfare of their fellow men did not let their H25 1460 concern to run their businesses at a profit restrict the development of H25 1470 freedom and opportunity. Some would say that they were not permitted H25 1480 to run their businesses only for profit; and even putting it that H25 1490 way would not prove that Marx was anything but wrong. Sir Henry H25 1500 Sumner Maine, a hundred years before Communism was a force to be H25 1510 reckoned with, wrote his brilliant legal generalization, that "the H25 1520 progress of society is from status to contract". The essence of contract H25 1530 is that one is free to make a choice of what one will or will not H25 1540 do. Hence, the condition of freedom is a necessary condition for choice. H25 1550 The greater the range of freedom for individual men, the greater H25 1560 the range of choice; the greater the range of choice, the greater H25 1570 the rate of change. For change is dependent on the possibilities that H25 1580 individual men glimpse for the future. But when there is not freedom H25 1590 and opportunity to choose, men- individual men- must remain in status H25 1600 and society does not, cannot progress. The eternal truth H25 1610 is that progress- due, as it always is, to individual creative genius- H25 1620 is just as dependent on freedom as human life is dependent on the H25 1630 beating of the heart. And lest anybody think that considerations H25 1640 such as these are not germane in a foundation report, let me enlighten H25 1650 them with the truths that, under Communism there would have been H25 1660 no capital with which to endow the Foundation, and that there would H25 1670 not be that individual freedom within which the Fellows might proceed, H25 1680 untrammeled in every way, toward their discoveries, their creative H25 1690 efforts for the good of mankind. #@# DURING the year 1959, H25 1700 we granted 354 Fellowships; in 1960, we granted 334. As heretofore, H25 1710 our Fellowships are available to assist research in all fields of H25 1720 knowledge and creative effort in all the arts. We do not favor one field H25 1730 over another: we think that all inquiry, all scholarly and artistic H25 1740 creation, is good- provided only that it contributes to a sense H25 1750 and understanding of the true ends of life, as all first-rate scholarship H25 1760 and artistic creation does. Indeed, if pressed, we would say what H25 1770 the late Robert Henri, American painter, said to a pupil, "Anything H25 1780 will do for a subject: it's what do with it that counts". H25 1790 Thus, we have no part, and want none, in current discussions H25 1800 of the relative importance of science, the social studies, the humanities, H25 1810 the creative arts. We want no part in such discussions, because H25 1820 we think them largely futile; and we think them largely futile because, H25 1830 for true excellence of accomplishment, every scholar and every H25 1840 artist must cross boundaries of knowledge and boundaries of points of H25 1850 view. H26 0010 When the Brown + Sharpe Manufacturing Company reached its H26 0020 125th year as a going industrial concern during 1958, it became an almost H26 0030 unique institution in the mechanical world. With its history H26 0040 standing astride all but the very beginnings of the industrial revolution, H26 0050 Brown + Sharpe has become over the years a singular monument H26 0060 to the mechanical foresight of its founder, Joseph R& Brown, and H26 0070 a world-renowned synonym for precision and progress in metalworking technology. H26 0080 Joseph R& Brown grew up in the bustle and enterprise H26 0090 of New England between 1810 and 1830. He was early exposed to H26 0100 the mechanical world, and in his youth often helped his father, David H26 0110 Brown, master clock and watchmaker, as he plied his trade. At the H26 0120 age of 17 he became an apprentice machinist at the shop of Walcott + H26 0130 Harris in Valley Falls, Rhode Island, and following two or three H26 0140 other jobs in quick succession after graduation, he went into business H26 0150 for himself in 1831, making lathes and small tools. This enterprise H26 0160 led to a father-and-son combination beginning in 1833, under the name H26 0170 D& Brown + Son, a business which eventually grew into the modern H26 0180 corporation we now call Brown + Sharpe. The years of Joseph's H26 0190 partnership with his father were numbered. In 1838, a devastating H26 0200 fire gutted their small shop and soon thereafter David Brown moved H26 0210 west to Illinois, settling on a land grant in his declining years. H26 0220 Joseph Brown continued in business by himself, quickly rebuilding H26 0230 the establishment which had been lost in the fire and beginning those H26 0240 first steps which were to establish him as a pioneer in raising the H26 0250 standards of accuracy of machine shop practice throughout the world. H26 0260 Much of his genius, of course, sprang from his familiarity with H26 0270 clock movements. During these early years the repair of watches and H26 0280 clocks and the building of special clocks for church steeples formed H26 0290 an important part of the young man's occupation. He became particularly H26 0300 interested in graduating and precision measurement during the 1840's, H26 0310 and his thinking along these lines developed considerably during H26 0320 this period. But his business also grew, and we are told that Mr& H26 0330 Brown found it H26 0340 increasingly difficult to devote as much time to his H26 0350 creative thinking as his inclinations led him to desire. It must have H26 0360 been with some pleasure and relief that on September 12, 1848, Joseph H26 0370 Brown made the momentous entry in his job book, in his characteristically H26 0380 cryptic style, "Lucian Sharpe came to work for me this day H26 0390 as an apprentice". The young apprentice apparently did well H26 0400 by Mr& Brown, for in the third year of his apprenticeship Lucian H26 0410 was offered a full partnership in the firm; the company became "J& H26 0420 R& Brown + Sharpe", and entered into a new and important H26 0430 period of its development. Mr& Sharpe's arrival in the business H26 0440 did indeed provide what Mr& Brown had most coveted- time for "tinkering", H26 0450 and the opportunity of carrying out in the back room those H26 0460 developments in precision graduation which most interested him at that H26 0470 time. By 1853, the new partnership announced the precision H26 0480 vernier caliper as the first fruit of their joint efforts. The basic H26 0490 significance of this invention helped them to follow it rapidly in 1855 H26 0500 by the development of a unique precision gear cutting and dividing H26 0510 engine. That development, in turn, formed the foundation of still more H26 0520 significant expansions in later years- in gear cutting, in circular H26 0530 graduating, in index drilling, and in many other fields where accuracy H26 0540 was a paramount requirement. Throughout their careers, both H26 0550 Mr& Brown and Mr& Sharpe were interested in the problem of setting H26 0560 up standards of measurement for the mechanical trades. Several H26 0570 efforts were made in this direction, and though not all of them survive H26 0580 to this day, the Brown + Sharpe wire gage system was eventually adopted H26 0590 as the American standard and is still in common use today. H26 0600 As one development followed another, the company's reputation for H26 0610 precision in the graduating field brought it broader and broader opportunities H26 0620 for expansion in precision manufacture. In 1858, the partnership H26 0630 began manufacturing the Willcox + Gibbs sewing machine. H26 0640 As the story goes, Mr& Gibbs, who originally came from the back H26 0650 counties of the Commonwealth of Virginia, saw an illustration in a H26 0660 magazine of the famous Howe sewing machine. Curious as to what made H26 0670 it work, he built a crude model of it in wood, and filed a piece of steel H26 0680 until he succeeded in making a metal pickup for the thread, enabling H26 0690 the crude machine to take stitches. When he showed this model as his H26 0700 "solution" as to how the Howe sewing machine operated, he was H26 0710 told he was "wrong", and discovered to his amazement that the Howe H26 0720 Machine, which was unknown to him in detail, used two threads while H26 0730 the one that he had perfected used only one. Thus was invented the H26 0740 single thread sewing machine, which Mr& Gibbs in partnership with H26 0750 Mr& Willcox decided to bring to Brown + Sharpe with the proposal H26 0760 that the small company undertake its manufacture. The new work H26 0770 was a boon to the partnership, not only for its own value but particularly H26 0780 for the stimulation it provided to the imagination of J& R& H26 0790 Brown toward yet further developments for production equipment. H26 0800 The turret screw machine, now known as the Brown + Sharpe hand H26 0810 screw machine, takes its ancestry directly from Mr& Brown's efforts H26 0820 to introduce equipment to simplify the manufacture of the sewing H26 0830 machine. Mr& Brown made important additions to the arts in screw machine H26 0840 design by drastically improving the means for revolving the turret, H26 0850 by introducing automatic feeding devices for the stock, and reversible H26 0860 tap and die holders. In 1861, Mr& Brown's attention H26 0870 was called to yet another basic production problem- the manufacture H26 0880 of twist drills. At that time, during the Civil War, Union muskets H26 0890 were being manufactured in Providence and the drills to drill them H26 0900 were being hand-filed with rattail files. This process neither satisfied H26 0910 the urgent production schedules nor Mr& Brown's imagination H26 0920 of the possibilities in the situation. The child of this problem was H26 0930 Mr& Brown's famous Serial No& 1 Universal Milling Machine, H26 0940 the archtype from which is descended today's universal knee-type H26 0950 milling machine used throughout the world. The original machine, bearing H26 0960 its famous serial number, is still on exhibition at the Brown + Sharpe H26 0970 Precision Center in Providence. During the Civil War H26 0980 period Mr& Brown also invented the Brown + Sharpe formed tooth H26 0990 gear cutter, a basic invention which ultimately revolutionized the world's H26 1000 gear manufacturing industry by changing its basic economics. H26 1010 Up until that time it had been possible to make cutters for making gear H26 1020 teeth, but they were good for only one sharpening. As soon as the H26 1030 time came for re-sharpening, the precise form of the gear tooth was lost H26 1040 and a new cutter had to be made. This process made the economical H26 1050 manufacture of gears questionable until some way could be found to permit H26 1060 the repeated re-sharpening of gear tooth cutters without the loss H26 1070 of the precision form. Mr& Brown's invention achieved this and, H26 1080 as a byproduct, formed the cornerstone of Brown + Sharpe's position H26 1090 of leadership in the gear making equipment field which lasted until H26 1100 the 1920's when superceded by other methods. The micrometer H26 1110 caliper, as a common workshop tool, also owes much to J& R& Brown. H26 1120 Although Mr& Brown was not himself its inventor (it was a French H26 1130 idea), it is typical that his intuition first conceived the importance H26 1140 of mass producing this basic tool for general use. So it was H26 1150 that when Mr& Brown and Mr& Sharpe first saw the French tool H26 1160 on exhibition in Paris in 1868, they brought a sample with them to the H26 1170 United States and started Brown + Sharpe in yet another field where H26 1180 it retains its leadership to this day. The final achievement H26 1190 of Mr& Brown's long and interesting mechanical career runs a H26 1200 close second in importance to his development of the universal milling H26 1210 machine. That achievement was his creation of the universal grinding H26 1220 machine, which made its appearance in 1876 at the Philadelphia Centennial H26 1230 Exposition. This machine, like its milling counterpart, was H26 1240 the antecedent of a machine-family used to this very day in precision H26 1250 metalworking shops throughout the world. Along with J& R& Brown's H26 1260 other major developments, the universal grinding machine was profoundly H26 1270 influential in setting the course of Brown + Sharpe for many H26 1280 years to come. Following Mr& Brown's death, there came H26 1290 forward in the Brown + Sharpe organization many other men who contributed H26 1300 greatly to the development of the company. One such man was Samuel H26 1310 Darling. As head of the firm Darling + Swartz, Mr& H26 1320 Darling began by challenging Brown + Sharpe to its keenest competition H26 1330 during the 1850's and early 60's. In 1868, however, a truce H26 1340 was called between the companies, and the partnership of Darling, brown H26 1350 + Sharpe was formed. Between that year and the buying out of Mr& H26 1360 Darling's interest in 1892, a large portion of the company's precision H26 1370 tool business was carried out under the name of Darling, Brown H26 1380 + Sharpe, and to this day many old precision tools are in use still H26 1390 bearing that famous trademark. Perhaps the outstanding standard H26 1400 bearer of Mr& Brown's tradition for accuracy was Mr& Oscar H26 1410 J& Beale, whose mechanical genius closely paralleled that of H26 1420 Mr& Brown, and whose particular forte was the development of the exceedingly H26 1430 accurate measuring machinery that enabled Brown + Sharpe H26 1440 to manufacture gages, and therefore its products, with an accuracy exceeding H26 1450 anything then available elsewhere in the world. Also important H26 1460 on the Brown + Sharpe scene, at the turn of the century, was H26 1470 Mr& Richmond Viall, Works Superintendent of the company from H26 1480 1876 to 1910. Mr& Viall possessed remarkable talents for the leadership H26 1490 and development of men. He was an ardent champion of the Brown H26 1500 + Sharpe Apprentice Program and personal counselor to countless able H26 1510 men who first developed their industrial talents with the company. H26 1520 In one sense it can be said that one of the most important Brown + Sharpe H26 1530 products over the years has been the men who began work with the H26 1540 company and subsequently came to places of industrial eminence throughout H26 1550 the nation and even abroad. Commencing with the death of H26 1560 Lucian Sharpe in 1899, the name of Henry D& Sharpe was for more H26 1570 than 50 years closely interwoven with the destiny of the company. During H26 1580 his presidency, the company's physical plant was enormously expanded, H26 1590 and the length and breadth of the Brown + Sharpe machine tool H26 1600 line became the greatest in the world. During the early part of this H26 1610 century, the Brown + Sharpe works in Providence were unchallenged H26 1620 as the largest single manufacturing facility devoted exclusively to H26 1630 precision machinery and tool manufacture anywhere in the world. H26 1640 During these years the company's product line followed the basic tenets H26 1650 laid down by Mr& Brown. It expanded from hand screw machines H26 1670 to automatic screw machines, from simple formed-tooth gear cutting machines H26 1680 to gear hobbing machines and a large contract gear manufacturing H26 1690 business, from rudimentary belt-driven universal milling machines to H26 1700 a broad line of elaborately controlled knee-type and manufacturing type H26 1710 milling machines. In the grinding machine field, expansion went far H26 1720 from universal grinders alone and took in cylindrical grinders, surface H26 1730 grinders, and a wide variety of special and semi-special models. H26 1740 In 1951, Henry D& Sharpe, Jr& succeeded his father and H26 1750 continued H26 1760 the company's development as a major factor in the metal-working H26 1770 equipment business. The company is still broadening its line and H26 1780 is now active on four major fronts. The Machine Tool Division H26 1790 is currently producing Brown + Sharpe single spindle automatic screw H26 1800 machines, grinding machines of many types, and knee and bed-type H26 1810 milling machines. Recently added is the Brown + Sharpe turret drilling H26 1820 machine which introduces the company to an entirely new field of tool H26 1830 development. In the Industrial Products Division, the company H26 1840 manufactures and markets a wide line of precision gaging and inspection H26 1850 equipment, machinists' tools- including micrometers, Vernier H26 1860 calipers, and accessories. In the Cutting Tool Division, H26 1870 the principal products include a wide variety of high speed steel milling H26 1880 cutters, end mills and saws. H27 0010 Sales and net income for the year ended December 31, 1960 showed an H27 0020 improvement over 1959. Net income was $2,557,111, or $3.11 per share H27 0030 on 821,220 common shares currently outstanding, as compared to $2,323,867 H27 0040 or $2.82 per share in 1959, adjusted to the same number of shares. H27 0050 Sales and other operating income increased 25.1% from $24,926,615 H27 0060 in 1959 to $31,179,816 in 1960. This increase was sufficient to H27 0070 overcome the effect on net income of higher costs of manufacture and H27 0080 increased expenditures on research and development. In spite H27 0090 of the fact that our largest market, the textile industry, was affected H27 0100 substantially by the current decline in business activity, we have H27 0110 been able to produce and deliver our machines throughout the year 1960 H27 0120 at a rate materially higher than during 1959. #OUTLOOK FOR CURRENT H27 0130 YEAR# Our current rate of incoming orders has now contracted and H27 0140 unless this trend can be reversed, our production for 1961 will be lower H27 0150 than for 1960. However, the healthy inventory position of H27 0160 the textile industry lends support to the broadly expressed belief that H27 0170 improvement in that industry can be expected by the second half of 1961. H27 0180 #NEED FOR SOUND TAX POLICY# In connection with our continuing H27 0190 development of new and more efficient mill machinery, a sounder U& H27 0200 S& income tax policy on depreciation of production equipment, enabling H27 0210 the mills to charge off the cost of new machines on a more realistic H27 0220 basis, could, if adopted, have favorable effects on Leesona's H27 0230 business in the next few years. Such a depreciation policy would H27 0240 also, we believe, prove a very important factor in strengthening the H27 0250 competitive position of the U& S& textile and other industries, H27 0260 thus helping to strengthen the position of the dollar in foreign exchange. H27 0270 #RESEARCH AND DEVELOPMENT# Our research and development program, H27 0280 serving as it does an industry which must compete against low-cost H27 0290 production throughout the world, continues to have primary emphasis H27 0300 at Leesona. This program is based on the policy of designing H27 0310 and building efficient machines which will help produce better textile H27 0320 values- fabrics whose cost in relation to quality, fashion and utility H27 0330 provide the consumer with better textile products for the money. H27 0340 Such policy involves continuing effort to improve on existing H27 0350 mill equipment, in terms of efficiency and versatility. But more important, H27 0360 we believe, it must concentrate on the development of entirely H27 0370 new concepts in textile processing as do the Unifil loom winder and H27 0380 our more recent Uniconer automatic coning machine. #BUDGET INCREASED# H27 0390 On this basis, our already substantial budget for research and H27 0400 development has been further increased in recent years in order to finance H27 0410 the continuing engineering and design work essential to Leesona's H27 0420 future growth in sales and earnings. Much of this necessary H27 0430 increase in research and development, though properly chargeable to H27 0440 current expenses, is not reflected in earnings until projects are completed H27 0450 and the new machines sold in quantity, usually over a period of H27 0460 several years. #STRETCH YARN MACHINES# In December we began to H27 0470 ship our ultra-high-speed stretch yarn machines. These machines produce H27 0480 the higher quality stretch yarns required in weaving stretch and textured H27 0490 fabrics. During the past year, great progress has been made by H27 0500 the weaving mills in creating new stretch and textured fabrics. Fashion H27 0510 centers are now predicting broad acceptance of sports apparel and H27 0520 improved "wash and wear" dresses and blouses made from these fabrics. H27 0530 This machine, operating at speeds up to 350,000 revolutions H27 0540 per minute, is believed to provide one of the fastest mechanical operations H27 0550 in industry today. It transfers yarn directly from the producers' H27 0560 largest package into ideal supply packages for use on Unifil loom H27 0570 winders in weaving stretch yarn fabrics. #LARGE-PACKAGE TWISTER# H27 0580 Our new large-package ring twister for glass fiber yarns is performing H27 0590 well in our customers' mills. Later in the year, additional types H27 0600 of this Leesona twister will be made available to mills for other H27 0610 man-made fibers and natural yarns. These machines are designed to provide H27 0620 higher operating speeds, larger yarn packages, and greater flexibility H27 0630 of application to different types of yarn. This we believe will H27 0640 substantially broaden the potential market for the equipment. #UNICONER# H27 0650 Major activity at Providence in 1961 will involve the scheduled H27 0660 completion of tooling for production of the Uniconer automatic H27 0670 coning machine. This work is progressing on schedule and we expect to H27 0680 make initial shipments in the fourth quarter of this year. This machine H27 0690 was demonstrated in two textile machinery exhibitions last year and H27 0700 was well received by the industry. The potential market for the machine H27 0710 should be comparable to that of the Unifil loom winder. The H27 0720 Uniconer has several outstanding features- it operates with much H27 0730 greater efficiency than existing equipment; it incorporates an automatic H27 0740 knot-tying device on each spindle, and it will knot a break in H27 0750 the yarn in 10 seconds as well as tie in new bobbins as the running end H27 0760 is exhausted. Because the bobin-to-cone winding process is a H27 0770 relatively high-cost operation for the mill, the almost complete automation H27 0780 provided by the Uniconer can mean important economies in textile H27 0790 production, at the same time upgrading quality. Many mills have already H27 0800 placed firm orders for this machine. #NEW UNIFIL APPLICATION# H27 0810 A new application for the Unifil loom winder, running single filling H27 0820 for box looms, will broaden mill use of this equipment. #TAKE-UP H27 0830 MACHINES# A new spinning take-up machine has been developed to facilitate H27 0840 the use of our take-up machine in the production of thermoplastic H27 0850 yarns. It is equipped with electronic controls that can be set to H27 0860 hold precise tension and speed. This new machine takes up filament H27 0870 yarn from spinneret or extruder and winds large packages at speeds H27 0880 up to 6,000 feet per minute. It is equipped with an automatic threading H27 0890 device to reduce waste and handling time. Our take-up machines H27 0900 and our twister-coners are undergoing important pilot plant testing H27 0910 for application with new high polymer yarns, in several fiber producing H27 0920 plants. We look forward to a stronger position in this expanding H27 0930 field. #DIVERSIFICATION PLANS# We are interested in further diversification H27 0940 into other fields of capital goods, or components for industrial H27 0950 products, and have recently intensified our efforts in that direction. H27 0960 #PATTERSON MOOS RESEARCH# Our Patterson Moos Research H27 0970 Division has made further very encouraging progress in development of H27 0980 fuel cells. The cooperation of our exclusive American licensee, Pratt H27 0990 + Whitney Aircraft Division of United Aircraft Corporation, H27 1010 has been important in this work. In addition to its major effort on fuel H27 1020 cells, Patterson Moos Research Division is continuing to carry H27 1030 on research in other fields, both under contract for the Defense Department, H27 1040 other government agencies and for our own account. ~PMR H27 1050 is currently supplying components vital to the Titan and Minuteman H27 1060 programs. We have recently entered into an agreement with Compagnie H27 1070 Generale de Telegraphie Sans Fil (~CSF) of France for H27 1080 the exclusive exchange of technical information on thermoelectric materials. H27 1090 The agreement gives us rights for manufacturing and marketing H27 1100 of such materials in the United States. Initially we will import the H27 1110 thermoelectric materials and modules from France but later we will H27 1120 manufacture in this country. There is a rapidly growing demand for this H27 1130 material, primarily from the military. Further research, we believe, H27 1140 will develop important commercial applications. A project for H27 1150 the Air Force has been completed in which the ~NAIR infrared H27 1160 detecting device was developed for area monitoring of noxious or dangerous H27 1170 gases. We are initiating research on the use of solid state H27 1180 materials for infrared detection using a method which will not require H27 1190 cooling of materials to attain high sensitivity. The rapid H27 1200 advance in science today suggests many other avenues of investigation. H27 1210 Our plan is to keep abreast of these advances, and select for development H27 1220 those fields which seem most promising for our special capabilities. H27 1230 #NEW PLANT FACILITIES# Early in August we broke ground H27 1240 for a new $3,500,000 plant in Warwick, Rhode Island, which will house H27 1250 our textile and coil winding machinery operations. Construction is H27 1260 well along, and the plant is scheduled for completion in November of H27 1270 this year. All operations now carried on at our plant at Cranston will H27 1280 be transferred to Warwick. Operations in the new plant should be H27 1290 producing efficiently early in 1962. An architect's sketch H27 1300 of the new plant is shown on the front cover. The building will contain H27 1310 430,000 square feet, approximately the same as our present plant. However, H27 1320 its modern one-story layout is designed to increase our production H27 1330 capacity, permit more efficient manufacturing, and substantially H27 1340 reduce current repair and maintenance costs. A major consideration H27 1350 in the choice of the Warwick site, four miles from Cranston, was H27 1360 the fact that it permits retention of our present trained and highly H27 1370 skilled work force. We have entered into an agreement for the H27 1380 sale of the present Cranston properties, effective as soon as we have H27 1390 completed removal to our new plant. #BRITISH SUBSIDIARY# During H27 1400 the year our British subsidiary, Leesona-Holt, Limited, expanded H27 1410 its plant in Darwen, England, and added machine tool capacity. The H27 1420 operations of its other plant in Rochdale and Leesona's former operations H27 1430 in Manchester were transferred to a recently acquired plant H27 1440 in the adjoining town of Heywood. Layout and equipment were modernized H27 1450 and improved to obtain increased production on an efficient basis. H27 1460 The area available at Heywood is approximately three times the size H27 1470 of the former Rochdale and Manchester locations. In addition, land H27 1480 has been purchased to permit doubling the size of the plant in the future. H27 1490 #FINANCIAL DEVELOPMENTS# The new Warwick plant is being built H27 1500 at our expense and under our direction. It will be transfered on H27 1510 completion to The Industrial Foundation of Rhode Island, a non-profit H27 1520 organization, which will reimburse us for the cost of construction. H27 1530 we will then occupy the new plant under lease, with an option to purchase. H27 1540 These arrangements are, in our opinion, very favorable to Leesona. H27 1550 Interim financing of construction costs is provided by a short H27 1560 term loan from The Chase Manhattan Bank. In addition to expenditures H27 1570 on the Warwick plant, we have invested approximately $1,961,000 H27 1580 for machinery and equipment at Cranston, and for new machinery, H27 1590 plant and equipment at Leesona-Holt, Limited. We believe that these H27 1600 improved facilities will contribute income and effect savings which H27 1610 will fully justify the investment. Long term loans have been H27 1620 reduced by $395,000 to $2,461,000. Inventories increased $625,561 to H27 1630 $8,313,514 during the year and should decline in coming months. Thus H27 1640 we enter 1961 in a strong financial position. #EMPLOYEE CONTRACTS# H27 1650 In accordance with the two-year contract signed in May, 1959, with H27 1660 the International Association of Machinists, ~AFL-CIO, wages H27 1670 of hourly employees were increased by 4% in May, 1960, and pay levels H27 1680 for non-exempt salaried employees were increased proportionately. H27 1690 In addition, Blue Cross coverage for all employees and their dependents H27 1700 was extended to provide the full cost of semi-private hospital H27 1710 accommodations. #PERSONNEL BENEFITS# In addition to direct salaries H27 1720 and wages, the Company paid or accrued during the year the following H27 1730 amounts for the benefit of employees: @ During the pension H27 1740 year ended December 31, 1960, 23 employees retired, making a total H27 1750 of 171 currently retired under the Company's pension plan. At H27 1760 December 13, 1960 the fund held by the Industrial National Bank of H27 1770 Providence, as trustee for payment of past and future service pensions H27 1780 to qualified members of the plan, totaled $2,412,616. H27 1790 The basic market for textiles is growing with the expansion of H27 1800 the population that began 20 years ago. Another growth factor is increased H27 1810 consumer demand for better quality and larger quantities of fabrics H27 1820 that go with a rising standard of living. As in many other H27 1830 industries, rising costs and intense competition, both domestic and H27 1840 foreign, have exerted increasing pressure on earnings of the textile industry H27 1850 in recent years. #INCREASED EFFICIENCY# In textiles, as elsewhere, H27 1860 a major part of the solution lies in greater efficiency and H27 1870 higher productivity. As a designer and manufacturer of textile H27 1880 production machinery, Leesona and other companies in its industry have H27 1890 sought to meet this challenge with new or improved equipment and methods H27 1900 that would increase production, yet maintain both quality and flexibility. H27 1910 #PROBLEMS OF SHIFTING STYLES# The problem of efficient H27 1920 production in textiles is complicated by the fact that the industry serves H27 1930 large markets which shift quickly with changes of fashion in apparel H27 1940 or home decoration. Production must be adjusted accordingly, at H27 1950 minimum cost and quickly. In addition, production machinery must H27 1960 in many cases be designed to handle with equal efficiency both natural H27 1970 fibers and the increasing number of synthetics, as well as blends. H28 0010 Following the term of service in Japan, each emissary returns for a H28 0020 brief visit to the campus to interpret his experience to the college H28 0030 community. The Carleton Service Fund provides the financial support H28 0040 for this program. #MUSICAL ACTIVITIES# THE COLLEGE was one H28 0050 of the first to recognize the importance of music not only as a definite H28 0060 part of the curriculum but as a vital adjunct to campus life. Extensive H28 0070 facilities for group performance are provided by maintaining, under H28 0080 skilled direction, the Choir, the Orchestra, the Band, the Glee H28 0090 Club, and smaller ensembles of wind and string players. All H28 0100 students are invited to participate in any of the musical organizations H28 0110 for which they qualify. Orchestra, Band, and Choir have auditions H28 0120 during the week preceding the first day of classes. The Glee Club H28 0130 is open to all students and faculty with no auditions necessary for H28 0140 membership. In addition to the many appearances of these organizations H28 0150 throughout the college year, there are concerts by students of H28 0160 the music department, by members of the music faculty, and by visiting H28 0170 artists. Student musical organizations are the Knights of H28 0180 Carleton and the Overtones (men's vocal groups), and the Keynotes H28 0190 (a women's singing group). These student-directed organizations include H28 0200 eight to ten members each; they perform at many campus social H28 0210 events. #RELIGIOUS ACTIVITIES# FROM THE FOUNDING of the College H28 0220 those responsible for its management have planned to provide its H28 0230 students favorable conditions for personal religious development and to H28 0240 offer opportunities through the curriculum and otherwise for understanding H28 0250 the meaning and importance of religion. Courses are offered in H28 0260 ethics, the philosophy and history of religion, Christian thought and H28 0270 history, and the Bible. Carleton aims throughout its entire teaching H28 0280 program to represent a point of view and a spirit which will contribute H28 0290 to the moral and religious development of its students. A H28 0300 COLLEGE SERVICE OF WORSHIP is held each Sunday morning at eleven H28 0310 o'clock in the Chapel. The sermons are given by the College Chaplain, H28 0320 by members of the faculty, or by guest preachers. Music is furnished H28 0330 by the Carleton College Choir. CHAPEL SERVICES H28 0340 are held weekly. These services at which attendance is voluntary are H28 0350 led by the Chaplain, by the President of the College, by selected H28 0360 faculty members, students, and visitors. The service is brief and variety H28 0370 in forms of worship is practiced. A SUNDAY EVENING PROGRAM H28 0380 provides theological lectures, music, drama, and films related H28 0390 to the issues of the Judeo-Christian tradition. ATTENDANCE H28 0400 is required at the College Service of Worship at the Sunday H28 0410 Evening Program at any regularly organized service of public H28 0420 worship. Each semester every student must attend ten of the services H28 0430 or religious meetings. Attendance at the Chapel Service is voluntary. H28 0440 RELIGIOUS ORGANIZATIONS include the groups described H28 0450 below. The Y&M&C&A& and Y&W&C&A& at Carleton H28 0460 are connected with the corresponding national organizations and carry H28 0470 out their general purposes. Occasional meetings are held for the H28 0490 whole membership, usually with a guest speaker, while smaller discussion H28 0500 groups meet more frequently. The Associations sponsor many traditional H28 0510 campus events and provide students with opportunities to form new H28 0520 friendships, to broaden their interests, and to engage in worthwhile H28 0530 service projects. There are other organizations representing H28 0540 several of the denominational groups. Included are the following: Baptist H28 0550 Student Movement, Canterbury Club (Episcopal), Christian H28 0560 Science Organization, Friends' Meeting for Worship, Hillel (Jewish), H28 0570 Liberal Religious Fellowship, Lutheran Student Association, H28 0580 Newman Club (Roman Catholic), Presbyterian Student Fellowship, H28 0590 United Student Fellowship (Congregational-Baptist), and Wesley H28 0600 Fellowship (Methodist). Student religious organizations H28 0610 are co-ordinated under the Religious Activities Committee, a standing H28 0620 committee of the Carleton Student Association. THE NORTHFIELD H28 0630 CHURCHES include the following: Alliance, Congregational-Baptist, H28 0640 Episcopal, Lutheran (Norwegian, Danish, Missouri Synod, H28 0650 and Bethel), Methodist, Moravian, Pentecostal, and Roman Catholic. H28 0660 #THEATER# THE PURPOSE of producing plays at the College H28 0670 is three-fold: to provide the Carleton students with the best possible H28 0680 opportunity for theater-going within the limits set by the maturity H28 0690 and experience of the performers and the theatrical facilities available; H28 0700 to encourage the practice of attending the theater; and H28 0710 to develop a discriminating audience for good drama and sensitive performance. H28 0720 Dramatic activity at the College is organized and carried H28 0730 on by The Carleton Players, which is to say by all students who H28 0740 are so inclined to advance these aims. For the 1960-1961 season, H28 0745 The H28 0750 Carleton Players have announced by Federico H28 0760 Garcia Lorca, by Beaumont H28 0770 and Fletcher and by Eugene O'Neill, H28 0780 with a pre-season production of by Tennessee H28 0790 Williams. #STUDENT WORKSHOP# THIS workshop, located H28 0800 in Boliou Hall, provides facilities for students to work in ceramics, H28 0810 weaving, enameling, welding, woodworking, textile printing, printmaking, H28 0820 and lapidary. These extra-curricular activities are conducted H28 0830 under supervision of the Director of the Student Workshop. The H28 0840 workshop is open five afternoons and two evenings each week. H28 0850 A student organization, Bottega, is open to any student interested in H28 0860 increasing his understanding and appreciation of the graphic and ceramic H28 0870 arts in their historical, technical, and productive contexts. The H28 0880 group meets once a week in the Boliou Student Workshop. They are H28 0890 assisted and advised by members of the Art Department. #ATHLETICS# H28 0900 THE ATHLETIC PROGRAM at Carleton is considered an integral H28 0910 part of the activities of the College and operates under the same H28 0920 budgetary procedure and controls as the academic work. The physical H28 0930 education program for men recognizes the value of participation H28 0940 in competitive sports in the development of the individual student and H28 0950 aims to give every man an opportunity to enter some form of athletic H28 0960 competition, either intercollegiate or intramural. The same standards H28 0970 for admission, for eligibility to receive scholarships or grants-in-aid, H28 0980 and for scholastic performance at college apply to all students. H28 0990 A faculty committee on athletics, responsible to the faculty H28 1000 as a whole, exercises control over the athletic program of the College. H28 1010 It concerns itself with: _1._ The policies which govern H28 1020 the program _2._ The preservation of desirable balance between H28 1030 the athletic and academic programs of the College _3._ The approval H28 1040 of athletic schedules _4._ The maintenance of Midwest Conference H28 1050 eligibility standards Carleton is a member of the Midwest H28 1060 Collegiate Athletic Conference and abides by its eligibility rules. H28 1070 In addition to these rules, Carleton has added the following: H28 1080 _1._ A student who while in attendance at Carleton College participates H28 1090 in an athletic contest during the school year, other than that H28 1100 sponsored by the College, shall be permanently ineligible to participate H28 1110 in intercollegiate athletics at Carleton College and will also H28 1120 face permanent suspension from the institution. The school year does H28 1130 not end for any student until he has completed his last examination H28 1140 of the semester. _2._ A student to be eligible for the captaincy H28 1150 of any Carleton team must have a scholastic record of at least 1.00. H28 1160 THE "~C" CLUB is composed of the men of the College H28 1170 who have won an official letter in Carleton athletics. The purpose H28 1180 of the Club is to promote better athletic teams at Carleton and to H28 1190 increase interest in them among the student body. This is done by encouraging H28 1200 the entire male student body to participate in either the intercollegiate H28 1210 or intramural sports program and by sponsoring the Carleton H28 1220 cheerleaders. _SOCCER CLUB._ The Soccer Club was organized H28 1230 by undergraduate men interested in playing soccer and promoting the sport. H28 1240 Membership consists of both beginners and experienced players. Practices H28 1250 are held regularly and the schedule of games is prepared by H28 1260 the student coach and the officers of the club. _WOMEN'S RECREATION H28 1270 ASSOCIATION._ This Association, organized in 1920, is affiliated H28 1280 with the Athletic Federation of College Women. The purpose of the H28 1290 organization is to further the interest of women students in recreational H28 1300 activities as a means of promoting physical efficiency, sportsmanship, H28 1310 and "play for play's sake". The Association is governed H28 1320 by a board made up of representatives from each of the four classes. H28 1330 Membership is open to any woman student in the College. Active groups H28 1340 sponsored by the organization include the Saddle Club, Orchesis, H28 1350 Golf Club, Tennis Club, and Dolphins. The Saddle Club, open to H28 1360 students proficient in horsemanship, presents the Annual Spring Riding H28 1370 Exhibition, and during the year it offers speakers, movies, breakfast H28 1380 rides, and trips to broaden their knowledge of the sport. Orchesis, H28 1390 for students interested in the modern dance, contributes to the H28 1400 May Fete and offers earlier in the year a modern dance demonstration. H28 1410 Tennis Club participates in a dual tennis tournament with the University H28 1420 of Minnesota each fall, and also sponsors a two-day state invitational H28 1430 tennis meet at Carleton in May. The Dolphins present a H28 1440 three-night H28 1450 water show the week of the May Fete. Under the auspices of H28 1460 the Women's Recreation Association, interclass competition is organized H28 1470 in badminton, basketball, field hockey, golf, tennis, and swimming. H28 1480 The Association participates in the winter sports carnival and H28 1490 sponsors several Play Days with St& Olaf and other near-by colleges. H28 1500 With the co-operation of the Department of Physical Education H28 1510 for Men, the Women's Recreation Association arranges mixed tournaments H28 1520 in tennis and golf in the fall and spring. Throughout the year H28 1530 there are social events, such as picnics, breakfast hikes, canoe trips, H28 1540 banquets, and indoor parties. #COLLEGE PUBLICATIONS# IN ADDITION H28 1550 to the miscellaneous pamphlets and other printed matter which H28 1560 it issues, the College maintains regular publications, as follows: H28 1570 in five issues: in August; in September; H28 1590 the annual in March; an H28 1600 in April; and a special in June. The College H28 1610 also publishes each year and a monthly H28 1620 newsletter entitled . In co-operation H28 1630 with the Alumni Association of Carleton College, an alumni magazine, H28 1640 is edited and mailed H28 1650 seven times a year by the College's Publications Office and the H28 1660 Alumni Office. At intervals an alumni directory is issued. H28 1670 These publications may be secured as follows: The annual H28 1680 from the Director of Admissions and other issues from the Publications H28 1690 Office. In January, 1960, the first issue of a quarterly literary magazine, was published H28 1710 by the College. The magazine, edited by members of the Carleton Department H28 1720 of English, includes contributions by authors from both within H28 1730 and beyond the Carleton community. #STUDENT PUBLICATIONS# the college newspaper, is edited by students and published H28 1750 by the College under the supervision of the Publications Board. H28 1760 (See page 100.) It is issued weekly throughout the college year. H28 1770 The Publications Board holds annual competitive examinations for H28 1780 places on the editorial and business staffs. The editor, sports editor, H28 1800 and student business manager are chosen in December, the new staff H28 1810 assuming responsibility for the paper at the beginning of the second H28 1820 semester. The paper affords excellent practice for students interested H28 1830 in the field of journalism. the college annual, H28 1840 is published in the fall of each year. serves as a H28 1850 record of campus organizations and student activities during the year. H28 1860 The Publications Board receives applications for the positions of H28 1870 editor and business manager and makes the appointments in the spring H28 1880 previous to the year of publication. Members of staff H28 1890 are nominated by the editor and business manager and appointed by the H28 1900 Publications Board. a quarterly literary magazine, H28 1910 is published by the students of the College. It is the purpose H28 1920 of this magazine to serve as an outlet for student creative writing. H28 1930 The editor and business manager of are appointed by H28 1940 the Publications Board. #CAMPUS BROADCASTING STATION# A LOW-POWER, H28 1950 "carrier-current" broadcasting station, ~KARL, heard H28 1960 only in the campus dormitories, is owned and operated by the students H28 1970 to provide an outlet for student dramatic, musical, literary, technical, H28 1980 and other talents, and to furnish information, music, and entertainment H28 1990 for campus listeners. Over a hundred students participate in H28 2000 the planning and production of the daily program schedule. ~KARL H28 2010 provides experience for students who wish to pursue careers in radio. H28 2020 #STUDENT GOVERNMENT# THE CARLETON STUDENT ASSOCIATION includes H28 2030 all students in college and is intended "to work for the betterment H28 2040 of Carleton College by providing student government and student H28 2050 participation with the college administration in the formulation and execution H28 2060 of policies which pertain to student life and activities". H28 2070 THE CARLETON SOCIAL CO-OPERATIVE is a standing committee H28 2080 of the Carleton Student Association. Week-end activities for the entire H28 2090 campus are planned by the Co-op Board. H29 0010 In recent months, much attention has been given to the probable H29 0020 extent of the current downtrend in business and economists are somewhat H29 0030 divided as to the outlook for the near future. And yet, despite some H29 0040 disappointment with the performance of this first year of the new H29 0050 decade, 1960 has been a good year in many ways, with many overall measures H29 0060 of business having reached new peaks for the year as a whole. The H29 0070 shift in sentiment from excessive optimism early in the year to the H29 0080 present mood of caution has probably been a good thing, in that it has H29 0090 prevented the accumulation of the burdensome inventories that have characterized H29 0100 many previous swings in the business cycle. This caution H29 0110 has been particularly noticeable in a tendency of retailers and distributors H29 0120 to shift the inventory burden back on the supplier, and the fact H29 0130 stocks at retail are low in many lines has escaped attention because H29 0140 of the presence of higher stocks at the manufacturing level. In H29 0150 the electronics industry, this tendency is well illustrated by inventories H29 0160 of ~TV sets. Factory stocks in recent months have been the H29 0170 highest they have been in three years, while those at retail are below H29 0180 1959. The total value of our industry's shipments, at factory prices, H29 0190 increased from $9.2 billion in 1959 to approximately $10.1 billion H29 0200 as a result of increases in all of the major segments of our business- H29 0210 home entertainment, military, industrial, and replacement. I believe H29 0220 a further gain is in prospect for 1961. #HOME ENTERTAINMENT SALES H29 0230 UP# Reflecting the largest percentage of high-end sets such as H29 0240 consoles and combinations since 1953, dollar value of home entertainment H29 0250 electronics in 1960 was about $1.9 billion, compared to $1.7 billion H29 0260 in 1959. Sales of ~TV sets at retail ran ahead of the like months H29 0270 of 1959 through July; set production (excluding those destined for H29 0280 the export market) also ran ahead in the early months, but was curtailed H29 0290 after the usual vacation shutdowns in the face of growing evidence H29 0300 that some of the early production plans had been overly optimistic. H29 0310 For the year as a whole, retail sales of ~TV sets probably came H29 0320 to 5.8 million against 5.7 million in 1959; however, production came H29 0330 to only 5.6 million compared to 6.2 million. In contrast to the H29 0340 lower turnout of ~TV, total radio production increased from 15.4 H29 0350 million sets to 16.7 million (excluding export). Both home and auto H29 0360 radios were in excellent demand, with retail sales of home sets ahead H29 0370 of 1959 in every month of the first eleven; sales and production of H29 0380 home sets were about equal at 10.4 million units. Auto set production H29 0390 came to about 6.3 million compared to 5.6 million in 1959. Separate H29 0400 phonographs also had a good year, reflecting the growing popularity of H29 0405 stereo H29 0410 sound and the same tendency on the part of the consumer to upgrade H29 0420 that characterized the radio-~TV market. The outlook H29 0430 for entertainment electronics in 1961 is certainly far from clear at present, H29 0440 but recent surveys have shown a desire on the part of consumers H29 0450 to step up their buying plans for durable goods. I would expect that H29 0460 sales at retail in the first half of 1961 might be below 1960 by some H29 0470 10-15% but that second-half levels should show a favorable comparison, H29 0480 with a possibility of quite strong demand late in the year if business H29 0490 conditions recover as some recent forecasts suggest they will. I H29 0500 look for ~TV sales and production to be approximately equal at 5.7 H29 0510 million sets for the year, but I look for some decline in radios from H29 0520 the high rate in 1961 to more nearly the 1959 level of 15.0-15.5 million H29 0530 sets. I therefore believe it is realistic to assume a modest drop H29 0540 in the total value of home entertainment electronics to about $1.8 H29 0550 million, slightly below 1960, but above 1959. #MILITARY ELECTRONICS H29 0560 TO GROW# 1960 witnessed another substantial increase in our industry's H29 0570 shipments of military electronics, which totalled about $5.4 billion H29 0580 compared to $4.9 billion in 1959. It is interesting to note that H29 0590 the present level of military electronics procurement is greater than H29 0600 the industry's total sales to all markets in 1950-1953, which were good H29 0610 years for our industry with television enjoying its initial period H29 0620 of rapid consumer acceptance. It has been correctly pointed out by well-informed H29 0630 people in the industry that it is probably unrealistic to H29 0640 expect a continuation of the yearly growth of 15% or better that characterized H29 0650 the decade of the 1950's, and that our military markets H29 0660 may be entering upon a new phase in which procurement of multiple weapons H29 0670 systems will give way to concentration of still undeveloped areas H29 0680 of our defense capability. While this may well be true in general, I H29 0690 believe it is also important to keep in mind that some recent developments H29 0700 suggest that over the next year or so military electronics may be H29 0710 one of the most strongly growing areas in an economy which is not expanding H29 0720 rapidly in other directions. Among the items scheduled H29 0730 for acceleration in the near future are the POLARIS and ~B70 H29 0740 programs, strengthening of the airborne alert system of the Strategic H29 0750 Air Command, and improved battlefield surveillance systems. Research H29 0760 and development expenditures connected with the reconnaissance satellite H29 0770 SAMOS and the future development of ballistic missile H29 0780 defense systems such as NIKE-ZEUS are expected to increase substantially. H29 0790 Research, development test and evaluation funds, devoted H29 0800 to missiles in 1960 were 3 to 4 times as large as those devoted to aircraft, H29 0810 and actual missile procurement is expected to exceed aircraft procurement H29 0820 by 1963. Still later, the realm of space technology will show H29 0830 substantial gains; it has been estimated that spending by the National H29 0840 Aeronautics and Space Administration will rise from less than H29 0850 $500 million in fiscal 1960 to more than $2 billion by 1967, and that H29 0860 the electronic industry's share of these expenditures will be closer H29 0870 to 50% than the current 20%. The stepped up defense procurement H29 0880 called for in the 1961 Budget has already begun to make itself H29 0890 felt in an upturn in orders for military electronic equipment and H29 0900 the components that go into it, and it has been suggested that an additional H29 0910 $2 billion increase in total defense spending may be requested H29 0920 for fiscal 1962. Although the impact of these increases on our industry's H29 0930 shipments will be gradual, on balance I look for another good H29 0940 increase in shipments in the coming year, to at least $6 billion. #INDUSTRIAL H29 0950 ELECTRONIC EQUIPMENT# Paced by the continuing rapid growth H29 0960 of electronic data processing, sales of industrial and commercial electronic H29 0970 equipment totalled $1.8 billion compared to $1.6 billion in 1959. H29 0980 The market for computers and other data-handling continues to expand H29 0990 at the rate of about 30% annually, reaching some $450 million in H29 1000 1960. Informed estimates look for this market to approximately quadruple H29 1010 by the late 1960's, under the stimulus of new applications in H29 1020 the fields of banking and retailing, industrial process control, and information H29 1030 storage and retrieval. In the industrial field, prospects H29 1040 for higher expenditures on electronic testing and measuring equipment H29 1050 are also quite bright. For the near term, however, it must be realized H29 1060 that the industrial and commercial market is somewhat more sensitive H29 1070 to general business conditions than is the military market, and for this H29 1080 reason I would expect that any gain in 1961 may be somewhat smaller H29 1090 than those of recent years; sales should slightly exceed 1960, however, H29 1100 and reach $1.9 billion. #REPLACEMENT PARTS# In addition to H29 1110 the three major original equipment segments of the electronics business, H29 1120 the steady growth in the market for replacement parts continues H29 1130 year by year. This is now a $1.0 billion business, up from $0.9 billion H29 1140 in 1959, and should reach $1.1 billion in 1961. The markets H29 1150 for electronic parts in 1960 have reflected the changing patterns of H29 1160 the various end equipment segments of the industry. Demand for parts H29 1170 for home entertainment was strong in the first half, but purchases were H29 1180 cut back to lower levels during the fall as set manufacturers reduced H29 1190 their own operating rates. In the military field, incoming orders turned H29 1200 down early in the year, and remained rather slow until late fall H29 1210 when the upturn in procurement of equipment began to make itself felt H29 1220 in rising orders for components. Sales of transistors in 1960 H29 1230 exceeded $300 million, compared to $222 million in 1959 despite substantial H29 1240 price reductions in virtually all types. Production totalled about H29 1250 123 million units against 82 million in 1959, and I look for a further H29 1260 gain to 188 million units worth approximately $380 million in 1961. H29 1270 Sales of passive components, such as capacitors and resistors, although H29 1280 not growing as fast as those of semi-conductors were ahead of H29 1290 1959 this year, and should increase again in 1961. In sum, I H29 1300 look for another good year for the electronics industry in 1961, with H29 1310 total sales increasing about 7% to $10.8 billion, despite the uncertainties H29 1320 in the business outlook generally. As I have indicated above, H29 1330 I base this feeling on a belief that current weakness in the market H29 1340 for consumer durable goods may continue through the early months of H29 1350 the year, but will give way to a sufficiently strong recovery later on H29 1360 to bring the full-year figures close to those of 1960; on prospects H29 1370 for continued increases in defense spending; and on continued growth H29 1380 in the applications of electronics to the complex problems of manufacturing H29 1390 and trade in the expanding but competitive economy of the 1960's. H29 1410 The appointment of Gilbert B& Devey as General Manager H29 1420 of VecTrol Engineering, Inc&, of Stamford, Connecticut, a leading H29 1430 manufacturer of thyratron and silicon controlled rectifier electrical H29 1440 controls, has been announced by David B& Peck, Vice President, H29 1450 Special Products. Mr& Devey will be responsible for the H29 1460 commercial expansion of VecTrol's line of electronic and electrical H29 1470 power control components as furnished to end equipment manufacturers, H29 1480 working closely with Walter J& Brown, President and Director H29 1490 of Engineering of the recently acquired Sprague subsidiary. Mr& H29 1500 Brown will at the same time undertake expansion of VecTrol's custom H29 1510 design program for electronic control users with a greatly increased H29 1520 engineering staff. Mr& Devey's new responsibilities are H29 1530 in addition to those of his present post as marketing manager of H29 1540 Sprague's Special Products Group, which manufactures a wide line H29 1550 of digital electronic components, packaged component assemblies, and H29 1560 high temperature magnet wires. Mr& Devey first came to Sprague H29 1570 in 1953 as a Product Specialist in the Field Engineering Department, H29 1580 coming from the Office of Naval Research in Washington, D& H29 1590 C&, where he was an electronic scientist engaged in undersea warfare H29 1600 studies. During World War /2,, he was a lieutenant commander H29 1610 in the United States Navy. Mr& Devey is a graduate of the Massachusetts H29 1620 Institute of Technology, and attended the United States H29 1630 Naval Academy Post-Graduate School specializing in electronic H29 1640 engineering. He was named Product Manager of the Special Products H29 1650 Division of Sprague when it was founded in 1958, and was later promoted H29 1660 to his present post. Mr& Devey is a member of the Institute H29 1670 of Radio Engineers, and is chairman of the Electronic Industries Association H29 1680 Committee ~P-9 on Printed and Modular Components. H29 1690 Mr& Brown, well-known, English-born inventor, prior to founding H29 1700 VecTrol was at various times section leader in radio research at H29 1710 Metropolitan Vickers Electrical Co&, Ltd&; chief engineer H29 1720 of the radio set division of Electric and Musical Industries, Ltd&, H29 1730 the largest electronic equipment manufacturer in Great Britain; H29 1740 director of engineering at Philco of Great Britain, Ltd&, and H29 1750 vice president in charge of production and assistant to the president H29 1760 at The Brush Development Co&, Cleveland, Ohio. He has a Bachelor H29 1770 of Science from the University of Manchester, England. Mr& H29 1780 Brown presently has over 130 patents to his credit dating back to 1923. H29 1790 He is a fellow of the American Institute of Electrical Engineers, H29 1800 and a senior member of the Institute of Radio Engineers. He H29 1810 is a member of the Institution of Electrical Engineers, London, a H29 1820 registered professional engineer in Connecticut and Ohio, and a chartered H29 1830 electrical engineer in Great Britain. H29 1840 The promotion of Robert E& Swift to the position of Assistant H29 1850 Manager of the Interference Control Field Service Department H29 1860 was announced early in December by Frederick S& Scarborough, H29 1870 Manager of Interference Control Field Service. The appointment was H29 1880 made in a move to expand the engineering services offered to the designers H29 1890 of electronic systems through assistance in electro-magnetic compatability H29 1900 problems. H30 0010 Between meetings he helps the president keep track of delegated matters. H30 0020 Since these duties fit neatly with those of the proposed presidential H30 0030 aide, one person, with adequate staff assistance, could fill both H30 0040 jobs. ## . The faculty H30 0080 believes that broad autonomy is necessary to preserve its freedom in teaching H30 0090 and scholarship. The president expects faculty members to remember, H30 0100 in exercising their autonomy, that they share no collective responsibility H30 0110 for the university's income nor are they personally accountable H30 0120 for top-level decisions. He may welcome their appropriate participation H30 0130 in the determination of high policy, but he has a right to H30 0140 expect, in return, that they will leave administrative matters to the H30 0150 administration. How well do faculty members govern themselves? H30 0160 There is little evidence that they are giving any systematic thought H30 0170 to a general theory of the optimum scope and nature of their part in H30 0180 government. They sometimes pay more attention to their rights than H30 0190 to their own internal problems of government. They, too, need to learn H30 0200 to delegate. Letting the administration take details off their hands H30 0210 would give them more time to inform themselves about education as a H30 0220 whole, an area that would benefit by more faculty attention. Although H30 0230 faculties insist on governing themselves, they grant little prestige H30 0240 to a member who actively participates in college or university H30 0250 government. There are, nevertheless, several things that the president H30 0260 can do to stimulate participation and to enhance the prestige of those H30 0270 who are willing to exercise their privilege. He can, for example, H30 0280 present significant university-wide issues to the senate. He can encourage H30 0290 quality in faculty committee work in various ways: by seeing to H30 0300 it that the membership of each committee represents the thoughtful as H30 0310 well as the action-oriented faculty; by making certain that no faculty H30 0320 member has too many committee assignments; by assuring good liaison H30 0330 between the committees and the administration; by minimizing the H30 0340 number of committees. Despite the many avenues for the exchange H30 0350 of ideas between faculty and administration, complaints of a lack H30 0360 of communication persist. The cause is as often neglect as hesitance H30 0370 to disclose. A busy president, conversant with a problem and its ramifications H30 0380 and beset by pressures to meet deadlines, tends naturally to H30 0390 assume that others must be as familiar with a problem as he is. The H30 0400 need for interchange and understanding makes vital the full use of all H30 0410 methods of consultation. To increase faculty influence and decrease H30 0420 tension, many presidents have established a standing advisory H30 0430 committee with which they can discuss problems frankly. The president H30 0440 has little influence in day-by-day curricular changes, but if H30 0450 he looks ahead two, three, or five years to anticipate issues and throw H30 0460 out challenging ideas, he can open the way for innovation, and he can H30 0470 also have a great deal to say as to what path it will take. Success H30 0480 will require tact, sensitivity to faculty prerogatives, patience, and H30 0500 persistence. ## . Deans can form an important bridge H30 0550 between the president and the faculty. They serve not only as spokesmen H30 0560 for their areas, but they also contribute to top-level decision H30 0570 making. The president who appoints strong men who have an all-college H30 0580 or university point of view and a talent and respect for administration H30 0590 can count on useful assistance. Faculty members depend on H30 0600 their department chairmen to promote their interests with the administration. H30 0610 The administration at the same time, looks to the chairmen H30 0620 for strategic aid in building stronger departments. One way that this H30 0630 can be done, other than by hiring new high-priced professors, is by constantly H30 0640 encouraging the department members to raise their standards H30 0650 of performance. The quality of a president's leadership is H30 0660 measured first by his success in building up the faculty. By supporting H30 0670 the efforts of the many faculty members who are working to attain ever H30 0680 higher standards, the president can encourage faculty leadership. H30 0690 Indirectly he can best help them by insuring that rigorous criteria for H30 0700 appointment and promotion are clearly set forth and adhered to. H30 0710 The academic dean should take a direct, long-term interest in faculty H30 0720 development. An alert dean will confer all through the year on personnel H30 0730 needs, plans for the future, qualifications of those on the job, H30 0740 and bright prospects elsewhere. For the maintenance of a long-term H30 0750 program, the departments, and particularly their chairmen, are H30 0760 strategic. They evaluate and nominate candidates for appointment and H30 0770 promotion. To provide an independent judgment for the president, the H30 0780 academic dean also investigates candidates thoroughly. At some H30 0790 colleges and universities, a faculty committee reviews and reports H30 0800 to the administration on the qualifications of candidates. Some faculty H30 0810 members and many administrators oppose faculty review groups because H30 0820 they either repeat department's actions or act . They H30 0830 can be effective, however, if their members set high standards for candidates H30 0840 and devote substantial time to the work. At one university, H30 0850 the president cites the faculty review committee as "a valued partner H30 0860 of the administration in guarding and promoting the quality of the H30 0870 faculty". Before the president recommends a candidate to the H30 0880 trustees, the administration collects the views of colleagues in the H30 0890 same field of knowledge on campus and elsewhere. The president or dean H30 0900 reads some of his publications to form the truest possible evaluation H30 0910 of the quality of his mind. No good way to evaluate teaching ability H30 0920 has yet been discovered, although some institutions use inventory sheets H30 0930 for a list of criteria. To avoid passing over quiet, unaggressive H30 0940 teachers as well as to decide whether others merit promotion, review H30 0950 of the right of faculty members to promotion or salary increases should H30 0960 be made periodically whether or not they have been recommended for H30 0970 advancement by their departments. There are certain aspects of H30 0980 personnel development in which a president must involve himself directly. H30 0990 He should personally consider the potential of a faculty member H30 1000 proposed for tenure, to guard against the mistake of making this profoundly H30 1010 serious commitment turn solely upon the man's former achievements. H30 1020 No one can be as effective as the president in inspiring older H30 1030 men to welcome imaginative new teachers whose philosophy or approach to H30 1040 their specialties is quite different. In particular, the president H30 1050 may have to summon all his oratorical powers to persuade department members H30 1060 to accept an outstanding man above the normal salary scale. On H30 1070 those rare occasions when a faculty member on tenure is not meeting the H30 1080 standards of the institution, the president must also bear the ultimate H30 1090 burden of decision and action. ## . Recently colleges and universities have begun H30 1150 to translate their educational philosophy into institution-wide goals. H30 1160 Each year a few more institutions are deciding such questions as: H30 1170 Shall we require a liberal education built around a humanities core H30 1180 for all undergraduates? Or shall we permit early specialization in H30 1190 scientific and technological subjects? In the first instance, adequate H30 1200 appropriate reading materials and library accommodations must be H30 1210 planned. In the second, more shops, laboratories, and staff will be required. H30 1220 For the president, a master plan looking ahead five years H30 1230 (the maximum reach for sound forecasting), offers several practical H30 1240 advantages. Trustees, faculty, and administration can consider the H30 1250 consequences of decisions before they are made, instead of afterwards. H30 1260 Physical plant and equipment can be efficiently developed. Proposed H30 1270 new programs can be examined for appropriateness to goals and for present H30 1280 and future financial fitness. More than one president has found H30 1290 that a long-range plan helps him to attract major gifts. It inspires H30 1300 confidence in his institution's determination to establish goals and H30 1310 to achieve them. Before deciding where it is going, however, H30 1315 a college H30 1320 or university must know where it is. The first step is a comprehensive H30 1330 self study made by faculty, by outside consultants, or by a combination H30 1340 of the two. It should sternly appraise curricula, faculty, organization, H30 1350 buildings, faculty work loads, and potential for growth in H30 1360 stature and size. Implementation of the master plan will inevitably H30 1370 be uneven. Some departments will attack their new goals enthusiastically; H30 1380 others may drag their feet. Funds may be readily donated H30 1390 for some purposes but not others. A plan must therefore be brought H30 1400 up to date periodically, possibly with the assistance of a permanent H30 1410 planning officer. To provide the continuous flow of information H30 1420 basic to administrative decisions, a number of institutions have established H30 1430 offices of institutional research. Some offices have very broad H30 1440 responsibilities, touching on almost all aspects of a university's H30 1450 instructional program. Their duties include evaluation of the information H30 1460 collected and preparation of recommendations. More often, these H30 1470 offices are restricted to the gathering of empirical data. ## H30 1480 **h . H30 1510 No matter how high the hopes and dreams of educators, budget H30 1520 making adjusts them to the cold realities of dollars and cents. When H30 1530 the budget goes to trustees for approval it is the president's budget, H30 1540 to which his faith and credit are committed; its principal features H30 1550 should be a product of his most considered judgment. He cannot, H30 1560 of course, examine each proposal from scratch. He reviews and shapes H30 1570 the work of others to mold a single joint product that will best promote H30 1580 the aims of the institution. Budgeting must be flexible to H30 1590 allow adaptation to the rapid changes in scientific and technological H30 1600 scholarship. Because scientific instruction and research involve increasingly H30 1610 large sums of money, an institution should choose its fields H30 1620 of prominence. Otherwise it will be headed for bankruptcy, at worst, H30 1630 and at best towards starvation of other less dramatic but socially and H30 1640 culturally indispensable branches of learning. In the national interest H30 1650 even the affluent universities must consider some division of labor H30 1660 among them to replace their present ambitions to keep up with the Joneses H30 1670 in all branches. ## . In the areas that H30 1720 do H30 1730 not relate directly to the educational program, expert subordinates will H30 1740 serve the college or university better than close presidential attention. H30 1750 The president should find strong subordinates and delegate the H30 1760 widest discretion to them. Higher education cannot compete with the H30 1770 salary scales of the business world, but an educational institution can H30 1780 offer many potent intangible attractions to members of the business H30 1790 community that will offset the differences in income. Just as H30 1800 the entire faculty should know the president's educational philosophy H30 1810 and objectives, so should non-academic officers. They will better H30 1820 understand the relationship of their activities to the academic program H30 1830 and they will be able to explain their actions to faculty in terms of H30 1840 mutual goals. A president is frequently besieged to serve in H30 1850 non-academic civic and governmental capacities, to make speeches to lay H30 1860 groups, and to make numerous ceremonial appearances on and off campus. H30 1870 Since he can neither accept nor reject them all, he must be governed H30 1880 by the time and energy available for his prime professional obligations. H30 1890 Declinations and substitutions are better received when he explains H30 1900 why his obligations to his institution preclude his acceptance. H30 1910 By sharing the load of important speeches with his colleagues, H30 1920 the president can develop a cadre of able spokesmen who will help to H30 1930 create a public perception of the university as an institution, something H30 1940 more than the lengthened shadow of one man.