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