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Letters, statements, etc., submitted for the record by-Continued

Harden, Hon. Cecil M., a Representative in Congress from the State Page

of Indiana: Statement.--

7

€ Hoffman, Hon. Clare E., a Representative in Congress from the State

of Michigan and chairman, House Government Operations Com-

mittee:

Excerpt from H. R. 9890__-

----------- 206

ca “United States Will Cut Role as Entrepreneur-White House

ਹੋ

Moving to Turn Over to Private Business Many Federal

- Enterprises,” by Anthony Leviero, New York Times ------ 90

Honeywell, Charles F., Administrator, Business and Defense Services
11 Administration, Department of Commerce:

Department of Commerce, Business and Defense Services Ad-

ministration Government competition with private business:

galo Cases reported by divisions to date, June 1, 1954. ---- 217
6
Cases known, not reported through industry division.

218
SVE Memorandum re complaints of Government competition.inc 223
Statement re agencies equipped to settle complaints------

222

Jackson, James E., executive director, Georgia Dairy Association:

Extracts of communications..

128

Additional extracts of communications

131

Sample report from post commanders-

123

Statement.--

127

Supplemental statement..

131

Jackman, William, president, the Investors League, Inc.: Excerpt

from Seventh Intermediate Report of Government Operations
Committee, December 31, 1951.-

192

18 Johnson, Jerry P., representing the American Warehousemen's Asso-

reciation: Letter from William Dalton to Hon. Clare E. Hoffman,

08 July 16, 1954_.------

138

Keller, Robert F., assistant to the Comptroller General: Statement -

260

Kile, Elton, president, National Associated Businessmen, Inc.,

Kileville, Ohio: Statement -

48

Maudlin, C. V., Washington representative, National Association of

Waste Material Dealers, Inc.:

Excerpt from report of Senate Select Committee on Small

Business

156

: Excerpt from Senate Appropriations Committee report, section
622

156

Proviso from Department of Defense Appropriation Act for the

fiscal year ending June 30, 1955---

157

Statement-Government-operated aluminum-sweating facilities - 150

Letter from Senator Homer Ferguson to Hon. Charles E.
Wilson, August 13, 1953...

151

Munce, Marshall G., vice president, York Corp., and vice chairman,

Industrial Problems Committee, National Association of Manu-

facturers;

Basic policy of the National Association of Manufacturers on

Government competition with private enterprise-

45

National Association of Manufacturers' policy on hydroelectric
power development.--

45
Opoliner, Albert G., representing the Tillman-Lennett Distributing
System, Inc.: Statement..

113

Osmers, Hon. Frank C., Jr., a Representative in Congress from the

State of New Jersey:

Excerpt from H. R. 9890_

204

Letter from Clarence R. Miles, Chamber of Commerce of the

United States, July 13, 1954. -

63

Statement of the Chamber of Commerce of the United States. 63

Appendix A—Statement of policy -

65

Letter from Harold Howe, manager, Washington, D. C., office,

American Institute of Laundering, to Hon. Cecil M. Harden,

July 12, 1954.-

72

Letter from Hon. George A. Dondero, a Representative in

Congress from the State of Michigan, to Hon. Frank C. Osmers,
Jr., July 12, 1954.--

70
Letter from Hon. Herbert Hoover, former President of the United
States, to Hon. Clare E. Hoffman, July 13, 1954.-

63

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Letters, statements, etc., submitted for record by-Continued

Osmers, Hon. Frank C., Jr.-Continued

Letter from Hon. Howard S. Miller, a Representative in Congress

from the State of Kansas, to Hon. "Frank C. Osmers, Jr.,

Pago

July 10, 1954..

70

Letter from J. D. Henderson, national managing director, Ameri-

can Association of Small Business, to Hop. Clare E. Hoffman,

July 10, 1954.

65

Statement

65

Letter from John Schweizer, chairman, Committee on Govern-

ment Competition, Marking Device Association, Evanston, Ill.,

to Hon. Clare E. Hoffman, July 14, 1954.-

181

List of persons sending telegrams, statements or letters to the

Government Operations Committee.

Memorandum from Congressman Tabor, chairman, House

Committee on Appropriations-

63

Section 6 of H. R. 9890_

112

Statement.

8

Statement of L. R. Sanford, president, Shipbuilders Council of

America -

163

Statement of George J. Burger, vice president, National Federa-
tion of Independent Business.-

69

Statement of Hon. S. Walter Stauffer, a Representative in Con-

gress from the State of Pennsylvania -

183

Statement of Richard P. White, executive secretary, American
Association of Nurserymen, Inc.--

67
Telegram from L. M. Raftery, general president, Brotherhood of
Painters, Decorators, and Paperhangers of America -

181
Telegram from W. C. Birthright, general president, Journeyman
Barbers and Hairdressers International Union..

180
Pike, Thomas P., Assistant Secretary of Defense for Supply and
Logistics: Statement..

225
Pilcher, Hon. J. L., a Representative in Congress from the State of

Georgia: Excerpt of letter from Brigadier General Kelly re banks- 19
Smith, Arthur Clarendon, Jr., second vice president, District of Co-

lumbia Trucking Association: Letter from Morris Davidson, to
Brig. Gen. W. A. Carter, July 9, 1953_-

37
Taylor, Tyre, general counsel, Southern States Industrial Council:

Declaration of policy adopted by Southern States Industrial
Council, held at Point Clear, Ala., May 13 and 14, 1954_-

40
Excerpt from Harden Subcommittee Report---

41

Varrone, Anthony, business manager, Brushmakers Union, local

16303, American Federation of Labor: Statement-

187

Ward, Quaife M., assistant to the president of the American Retail

Association:

Excerpt from Defense Act of 1953_

144, 147

Statement.

139

-

GOVERNMENT IN BUSINESS
(H. R. 8832, H. R. 9834, H. R. 9935, and H. R. 9890)

WEDNESDAY, JULY 14, 1954

HOUSE OF REPRESENTATIVES,
COMMITTEE ON GOVERNMENT OPERATIONS,

Washington, D. C.
The committee met, pursuant to call, at 10:06 8. m., in room 429,
Old House Office Building, Hon. Clare E. Hoffman, chairman of the
committee, presiding.

The CHAIRMAN. The committee will be in order.

Without objection, H. R. 8832, H. R. 9834, H. R. 9835 and H. R.
9890 will be made a part of the record at this point.

(The bills, H. R. 8832, H. R. 9834, H. R. 9835, and H. R. 9890, are
as follows:)

(H. R. 8832, 83d Cong., 2d sess.)
A BILL To terminate or limit those activities of the Government which are conducted in competition with

private enterprise, to establish the Anti-Government Competition Board, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,

SHORT TITLE

SECTION 1. This Act may be cited as the “Anti-Government Competition

Act”.

DECLARATION OF POLICY

SEC. 2. The strength of this Nation rests on the free enterprise economic system.
The framers of the Constitution of the United States never intended that this
Government should compete with its people in the carrying on of business activity.
This Government is now engaged in over one hundred business-type activities
in competition with its people, such as the operation of hotels, railroads, tugboats,
and banks; the manufacture of paint, rope, chain, fertilizer, ice cream, rum, cloth-
ing, spectacles, and false teeth; coffee roasting; radio and telecommunications and
many others. Such Government competition tends to destroy initiative on the
part of the people and to restrict the normal growth and expansion of private
enterprise. It further deprives the people of opportunities for private employ-
ment and enterprise thereby reducing their ability to pay taxes without which
the Government cannot exist. It is the declared policy of the Congress that the
Government shall get out and stay out of business-type competition with its
people wherever consistent with the national health and security.

CREATION OF ANTI-GOVERNMENT COMPETITION BOARD

Sec. 3. In order to carry out the policies of this Act there is hereby created a
board to be known as the “Anti-Government Competition Board" (hereinafter
referred to as the “Board"). The Board shall be under the immediate direction
and supervision of the President and shall not be subject to the jurisdiction or
control of any other department, agency, establishment, or instrumentality of the
Federal Government. The principal office of the Board shall be located in the
District of Columbia.

DEFINITION OF GOVERNMENT COMPETITION
Sec. 4. For the purposes of this Act Government competition shall be deemed
to be any business-type activity of the Government which is, or normally can be,
engaged in by the people.

1

GENERAL AUTHORITY OF BOARD

Sec. 5. The Board shall have the authority to do all things necessary to carry out the provisions of this Act including, but without being limited to, the authority

(1) to prescribe such rules and regulations as it deems necessary governing the mai ner of its operation and its organization and personnel;

(2) to collect, collate, and analyze information received from Government departments, agencies, establishments, and instrumentalities with respect to Government competition;

(3) to publish such information and the results of such other studies as it may make;

(4) to consult and cooperate with officers of the Government supervising Government competition in order to determine the practicability of limiting or terminating such competition and to suggest where appropriate the utilization of private facilities, products, or services in lieu thereof;

(5) to appraise the various programs and activities of the Government in the light of the policy declared in section 2 of this Act for the purpose of determining the extent to which such programs and activities are contributing to the advancement of such policy and to make recommendations to the President with respect thereto; and

(6) to establish such advisory committees and to consult with such representatives of industry, agriculture, labor, consumers, and other groups, as it deems advisable.

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SPECIAL POWERS

SEC. 6. The Board shall have the authority to require all Government departments, agencies, establishments, and instrumentalities to transmit to the Board such information with respect to Government competition as the Board may deem desirable in carrying out the purposes of this Act including, but not limited to, the following:

(1) Å detailed description of each activity considered to be Government competition;

(2) The location of each such activity;

(3) The essential available financial information with respect to each such activity including the Government's capital investment therein and total receipts by sources and expenditures thereon;

(4) The customers or consumers of the products or services of each such activity; and

(5) The number of officers and employees (both civilian and military) employed directly in connection with each such activity.

NEW GOVERNMENT COMPETITION Sec. 7. Before undertaking any new Government competition or requesting or expending funds for any new Government competition it shall be the duty of each Government department, agency, establishment, or instrumentality, planning such activity to submit a report to the Board, in such form as the Board may prescribe, describing in detail the proposed Government competition. No such activity shall be undertaken or funds expended in pursuance thereof until thirty days after such report has been made to the Board. It shall be the duty of the Board during such thirty-day period to make a recommendation to the President as to whether such contemplated activity should be undertaken, bearing in mind the declaration of policy contained in section 2 of this Act: Provided, however, That this section shall not apply to any Government competition being carried on on the effective date of this Act or to any Government competition hereinafter specifically authorized by the Congress.

PUBLIC HEARINGS

SEC. 8. The Board shall hold public hearings to hear or receive statements from private persons or groups with respect to Government competition and its effect on the economy or on any industry, occupation, or region. Where any such statement in the opinion of the Board raises a substantial possibility that such activity of the Government is not consistent with the declaration of policy set forth in section 2 of this Act, the Government department, agency, establishment, or instrumentality supervising such activity shall be required to appear before the Board and set forth the reasons why such activity should not be curtailed or liquidated.

SEMIANNUAL REPORTS TO PRESIDENT AND CONGRESSIONAL OFFICERS

SEC. 9. The Board shall make a report on every six months of operation under this Act to the President, the President of the Senate, and the Speaker of the House, of Representatives. Such report shall include a list of all Government competition, an analysis of statements received from private persons or groups at public hearings or otherwise with respect to Government competition, together with their disposition and such other information, comments, and recommendations for the continuation, curtailment, or liquidation of Government competition as the Board may deem appropriate.

COMPOSITION

SEC. 10. The Board shall be composed of four members as follows: the Secretary of Commerce, the Secretary of the Treasury, the Comptroller General of the United States, and the Director of the Bureau of the Budget, or their duly designated deputies. The Secretary of Commerce shall be Chairman of the Board. The personnel necessary to carry out the functions of the Board shall be provided by the Executive Office of the President. Any expense incurred by the Board in carrying out its functions hereunder shall be charged to the Executive Office of the President.

UTILIZATION OF OTHER GOVERNMENT DEPARTMENTS, AGENCIES, ESTABLISHMENTS,

AND INSTRUMENTALITIES SEC. 11. The Board shall, to the fullest extent possible, utilize the services, facilities, and information (including statistical information) of other Government departments, agencies, establishments, and instrumentalities, as well as of private research agencies, in order that duplication of effort may be avoided.

EFFECTIVE DATE

Sec. 12. This Act shall take effect on the first day of the first calendar month following the date of its enactment.

[H. R. 9834, 83d Cong., 2d sess.] A BILL To provide for taking the Federal Government out of competition with private enterprise

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Director of the Bureau of the Budget shall submit to the Congress on the -th day of January in each year a list of all activities of the Federal Government which compete with unsubsidized private enterprise and which can be terminated without seriously impairing Government activities which do not compete with unsubsidized private enterprise. SEC. 2. This Act, except the first section, is enacted

(1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it shall be considered as part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in such House in the case of termination bills; and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the same manner and to the same extent as in the case of any other

rule of such House. SEC. 3. As used in this Act, the term “termination bill” means only a bill or joint resolution of either of the two Houses of the Congress, which provides that any or all of the activities on the most recently filed list referred to in the first section of this Act shall be terminated, suspended, or restricted.

Sec. 4. (a) Each termination bill shall be referred to the Committee on Government Operations of the Senate or of the House of Representatives, as may be: appropriate.

(b) Each list referred to in the first section of this Act shall be referred to the Committee on Government Operations of the Senate or of the House of Representatives, as may be appropriate.

SEC. 5. (a) If the committee to which has been referred a termination bill has not reported it before the expiration of

calendar days after its intro

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