[Congressional Record Volume 142, Number 13 (Wednesday, January 31, 1996)]
[House]
[Pages H999-H1002]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      WE MUST GET PAST THE CLICHES

  The SPEAKER pro tempore. Under the Speaker's announced policy of May 
12 1995, the gentlewoman from Ohio [Ms. Kaptur] is recognized for 60 
minutes as the designee of the minority leader.
  Ms. KAPTUR. Mr. Speaker, I would like to yield to the distinguished 
Member from the great State of Montana, Mr. Williams, who announced a 
little earlier in the month that he would not be returning after this 
year, and that is a great disappointment, not just to myself as a 
Member of this body, but to every person in this country.
  Few know this man. Let me say to the people of Montana, you sent the 
best.
  Now you can say whatever you want to say.
  Mr. WILLIAMS. I thank the gentlewoman very much for yielding.
  I first want to say to my colleague and friend, the gentlewoman from 
Ohio [Ms. Kaptur], how pleased I am with your kind and overly generous 
introduction and thoughts about me.
  But I am here for another year. One of the reasons I am glad enough 
for that is I continue to get to work with the gentlewoman.
  We have just heard on the House floor an argument for apple pie and 
motherhood and American flags. The previous speakers, it seems to me, 
are well-intentioned, but nonetheless were just filled with cliches. 
They condemned debt dependency and despair, they talked about fighting 
for fundamental principles, they condemned more and bigger government, 
and accused only one side of the aisle of being for that awful thing, 
talked about bloated regulations and big Washington solutions. I really 
did not hear anything they said with which I disagreed. It is just that 
almost everything they said, in my judgment, was somewhat meaningless 
and mostly cliches.
  One has to, it seems to me, in difficult times like this get past 
cliches and move to facts if we are really to change this Government 
and our response to people in the way they want. For example, let me 
take education. I serve on that committee. There has been for at least 
a decade, and particularly for the past year, howls coming out of this 
Chamber about the fat bureaucracy in education. So that is the cliche.
  Whether one, however, bothers, takes a few minutes to check the 
facts, you find out that in the schools of this country, central office 
personnel constitute less than 2 percent of school employees. We have 
heard, particularly during this last year on the floor of the House, a 
lot of talk about regulations in the schools, mandates from Washington, 
horrible regulations, how bad they are, how overwhelming, 
overwhelmingly destructive they are, but when you look at the facts of 
it, you find out some interesting things.

  Goals 2000 has no regulations. School-to-work legislation, relatively 
new, school-to-work law, no regulations. Under President Clinton, who 
came to office believing there were too many regulations, the 
Department of Education has eliminated two-thirds of the regulations 
surrounding elementary and secondary education in this country. Now I 
know there is a little cloud that follows President Clinton around, 
that no-credit cloud, he never gets any credit, but he has eliminated 
two-thirds of the elementary and secondary regulations in this country.
  A Member of this House, I will not name him or his State because it 
would not be fair, he is not here today, said about a week ago, 
speaking from the well of the House not far from where the gentlewoman 
from Ohio is standing, he said to the American people over C-SPAN with 
how many people listening, 100,000, 200,000, 1 million, 2 million, he 
said, You know, folks, I am not quoting him, I am paraphrasing him, I 
will quote him in a second, he said, You know, the problem, with 
Federal expenditures is only 23 cents of the dollars that we 
appropriate ever leaves Washington, only 23 cents on the dollar ever 
leaves Washington and gets down to the student; the rest of it, he 
said, feeds the Federal bureaucracy. So out of a dollar, he is saying 
only 23 cents gets to the student.
  Now, I suppose, what, hundreds of thousands, millions of people heard 
that. It is totally inaccurate when one checks the facts. The 
Department of Education in Washington DC, has the best, lowest overhead 
administrative record of any department. The Defense Department would 
kill for a record as good as the Department of Education has; less than 
2 percent, less than two cents of every dollar is used for the 
bureaucracy, for the overhead here in Washington, DC. So one needs to 
get past the cliches. One needs to get past the mistakes, some of them 
I think quite intentional.
  One really needs to get down to the facts, particularly, I want to 
say as I conclude, particularly in this representative democracy of 
ours, where the citizens need the facts if they are to make proper 
choices in November and on election days at the ballot box. If they are 
to place upon their elected representatives their will, their choices, 
their options, those must be based on facts--not cliches, not myths, 
not intolerance, not lack of compromise--facts.

                              {time}  1430

  Again, I am appreciative of the gentlewoman sharing some of her time 
with me.


                  Come Shop with Me at Scott Paper Co.

  Ms. KAPTUR. I will reclaim my remaining time. I thank the gentleman 
very much for offering that important clarification. I think one of the 
difficulties is when you have a large number of new Members that are 
elected, it takes a long time to learn the ropes, and sometimes perhaps 
people speak out before they check the facts. I think the gentleman's 
commentary this afternoon is helpful to the country.
  Let me say I come down here for a similar reason, and that is to 
offer a word of caution to Members of the freshman class, especially on 
the Republican side of the aisle, who this past Friday held a retreat. 
According to the press accounts, the purpose of the retreat was to 
reflect on how their best-laid plans for the so-called revolution went 
awry and to reflect why the American people have turned their backs 
thus far on their message.
  There was an article in my local paper, the Toledo Blade, last 
Saturday, which I am going to submit for the Record, which talks about 
the fact that this group of new Members was very concerned after the 
President's State of the Union that he was able to get his message 
across to the country, but that their leadership, according to this 
quote in the newspaper, that their leaders did not understand the 
importance of what they are calling communication. They were 
criticizing some of their leaders as too in your face, too extreme, too 
ideological. In order to help them out of this mess, one of the 
speakers that was invited to the retreat was the chief executive 
officer of Scott Paper Company. 

[[Page H1000]]

  When I read down to that point in the article, I knew that I had to 
come down here today and speak a bit. I would just say to the Members 
of the new class that rather than seeking political assistance from 
speakers like this Mr. Dunlap, I think maybe it might be important to 
have some quiet reflection, more in a spiritual sense, on your own, 
because when I tell you about this gentleman, I am not so sure you 
would want to invite him back.
  He is one of the most well known chief executive officers in our 
country, who is referred to as ``Chainsaw Al,'' the meanest boss in 
America, the country's most notorious employee killer. In his own 
biography he describes himself as Rambo in pinstripes because of the 
way that he cut employment and laid off, terminated, thousands of 
workers at Scott Paper Company, his home company. In fact, the May 1995 
issue of Fortune Magazine indicates a reduction in work force at Scott 
Paper of nearly half. Thousands and thousands and thousands of workers 
at that particular company were given the pink slip.
  Now, if I could give my colleagues some advice, it would be don't 
listen to Mr. Dunlap. Yet I see that he was invited. Over the last 
couple of years he has fired over 30,000 people in our country and 
shipped most of those jobs overseas. Recently he was a party to a 
merger between Kimberly Clark and Scott Paper, which he ended up coming 
out of that deal looking pretty good. He made over $100 million on the 
deal.
  I would like to ask Mr. Dunlap, in giving his advice to the new 
Members, I would like to know what happened to those thousands and 
thousands of workers that gave their loyal service to Scott Paper? What 
happened to them?
  During the time that all these workers were cut and terminated, Scott 
Paper enjoyed profits like it had never seen. Well, who would not, when 
you cut our work force in half? But he benefitted, $100 million.
  It is interesting to look at Scott Paper as a company, because it has 
manufacturing facilities all over the world. I know our listeners and 
Members of the House here buy their products. Viva paper towels is one 
you will notice on the shelves, or Scotties facial tissues, or 
Cottonelle, that you use in the bathroom.
  But the company whose products are familiar to us all is cleaning up 
at the expense of the U.S. taxpayers. Some of the countries that they 
do business in have the most dirt cheap labor anywhere on the globe. 
Honduras, gosh, they are a great respect for workers in Honduras. They 
are shot if they try to earn a decent living down there. Costa Rica, 
China, Thailand, Malaysis, Taiwan, South Korea. Scott Paper has a huge 
presence in Mexico. In fact, its Mexican subsidiary, Compania 
Industrial de San Cristobal, operates five manufacturing facilities in 
Mexico, and plans for more expansion are under way.
  In other words, all these people that got laid off in this country 
and are terminated coast to coast, they are going to be replaced by 
workers in Mexico who earn less than $1 an hour. Yet if you go to the 
store and buy any one of those products from Scott Paper, your prices 
did not go down. So what happened to the money? Mr. Dunlap took it.

  Though the productivity of the workers at Scott even prior to the 
layoffs was very high and their profits were high, they were not a 
bankrupt company, workers in Scott Paper's tissue mill in Everett, WA, 
and I hope there are citizens from Everett, WA who are listening, and 
other mills across the country, saw their jobs transferred to Mexico 
already. It is very interesting. In Mexico those workers have no 
benefits, they have no benefits. The workers in Washington made a 
living wage. That company really used to stand for something, before 
``Chain Saw Al'' got involved.
  In January of 1994, Scott employed 33,000 people worldwide. But by 
December, when he had finished, there were 19,900 people left. Those 
who did not lose their job last year, imagine what it must be like to 
come to work every day in that company wondering whether the hatchet is 
going to fall on your neck in spite of how hard you work, in spite of 
your loyalty to the company, because every worker in that company knows 
they can be replaced by a worker in another country where Scott has a 
plant that earns almost nothing, not even enough to afford to buy 
Scott's products in the countries where those products are sold and 
made.
  Scott Paper essentially put U.S. employees out of work, and, by 
building up operations in companies like Honduras and Mexico, the 
company continues to undercut the wages of this country and the 
American people.
  But, wait. It gets worse. We know prices have not gone down. In fact, 
prices in the tissue area have been going up for years, at the same 
time as people like Mr. Dunlap are reaping huge profits while they take 
advantage of dirt cheap labor elsewhere and put our people out of work 
in this country. The company does not even have the decency to pass 
along its cost savings as a result of manufacturing and other companies 
in the form of price reductions at the shelves when our people go to 
the supermarkets to shop.
  In the last year alone, however, as a result of this kind of 
shredding of a corporate charter with the American people, where so 
many of our folks are thrown out of work, its stock price skyrocketed. 
Wall Street could not be happier, its price value going up over 100 
percent.
  Now, what happened recently was Kimberly Clark just bought Scott 
Paper in July of this past year for $6.9 billion. Mr. Dunlap, that is 
where he managed to get $100 million on the deal, and effectively built 
a rising stock price on the swelling ranks of jobless people. How would 
you like to have him live next door to you?
  Kimberly Clark is the largest paper product company in Mexico, having 
invested over $100 million there, and millions more in other countries. 
It is interesting to see, a gentleman who came into address the new 
freshmen, who disdains Government, who disdains the laws of this 
country, benefits so much from Government programs.
  In 1994, Kimberly Clark, get ready for this, obtained $9.27 million 
from the Overseas Private Investment Corporation, for insurance. That 
is an instrumentality of the Government of the United States, paid for 
by our taxpayers to invest their money in other countries.
  In the same year, our Department of Labor certified 636 U.S. 
employees of Kimberly Clark as approved to receive help, unemployment 
help, because they were being put out of work because imports were 
coming in from Scott and Kimberly, the same products from these other 
countries, putting our workers out of work, and the American people 
have to pay for the families that have been put out of work by this 
very same company. Scott Paper, with its presence in Mexico, also had 
300 workers. So that is nearly 800 workers just in the past year that 
we are paying for, unemployed people, that these very same companies 
put out of work in the United States.

  You could say that is a form of corporate welfare, because, on the 
one hand these companies are using our money to go abroad, insurance 
through the taxpayers of the United States, and then putting the U.S. 
work force out of work and having to get the money to pay for those 
unemployed workers through our Department of Labor. We know Americans 
are paying for the training of nearly 1,000 workers just over the last 
year because of the actions of these two companies.
  Now, it is amazing, because Mr. Dunlap began working for Scott Paper 
at the beginning of 1994. The terms of his contract, though hidden from 
the public, specify a base salary of no less than $1 million per year. 
While 13,100 workers got pink slips, Scott Paper bought Mr. Dunlap a 
multimillion-dollar home in Boca Raton, FL, and gave him a $333,000 
hiring bonus. I sure hope that the new freshmen did not have to pay him 
to speak before their group, because he certainly could afford to come 
on his own.
  So I guess what I wanted to point out today, there were articles that 
were included in Roll Call on Monday talking about some of his comments 
to that group, where he said, and I can't repeat some of these words, 
by the way, but I will just leave a blank, where he advised the 
freshmen, ``Never give up. Never give up. Never let the `blank' get you 
down. This nonsense about the working people, don't ever apologize for 
being successful.''
  This is the kind of person that is being listened to here in 
Washington. It says here, and I quote directly,

 
[[Page H1001]]

       The sleepy-eyed freshmen were greeted with a take no 
     prisoners exhortation from Al Dunlap, the chief executive of 
     the Scott Paper Company, who has been described variously as 
     the meanest boss in America, the country's most notorious 
     employee killer.

  What an attitude at the end of the 20th century for someone with this 
kind of rapacious greed to be invited to address Members of the 
Congress of the United States, which means that they are acquiescing in 
the actions that he has taken.
  Mr. KILDEE. Mr. Speaker, will the gentlewoman yield?
  Ms. KAPTUR. I yield to the gentleman from Michigan.
  Mr. KILDEE. I have been listening to the gentlewoman's remarks. I was 
wondering, Mr. Dunlap is being asked by the Republican Conference to 
address them and to give them advice? Is that what the article states?
  Ms. KAPTUR. The article states that they were asking for his advice.
  Mr. KILDEE. His advice on Medicare, how to cut Medicare, the school 
lunch program, the WIC program for pregnant women? They have already 
cut those programs. He could advise them further on how to cut those 
programs. He is good at cutting programs. Is he coming in because he is 
an expert on cutting and they are going to go further in taking his 
advice on how to cut these programs for the people?
  Ms. KAPTUR. I think it is very interesting they would invite him in 
as an expert and listen to a gentleman like this, and try to shape 
their agenda for 1996. That is why I bring it to the attention of the 
body.
  Mr. KILDEE. I suggest after Mr. Dunlap, they should at least balance 
things out and maybe have someone like Mother Theresa come in and give 
them some spiritual guidance.
  Mr. HEFNER. I think he probably has a special interest, Mr. Dunlap. 
If you make the drastic cuts in Medicare and Medicaid and these other 
programs, it will make more room for a tax cut, which he will benefit 
very greatly from. So I admire the man for being honest about it. He at 
least is sticking to his principles. The more working folks you can get 
rid of and you can cut the Medicare and Medicaid and programs for 
children, then you give him a bigger tax cut. I do not have any idea 
what $100 million would be in a tax cut, but I think it would probably 
be substantial under the proposed budget that the Republicans are 
offering. So at least he is going to his constituency, those that 
sympathize with him and feel the same way that he does. It would have 
been kind of nice if we had heard what his views are on Medicare and 
Medicaid and family leave and this sort of thing.

                              {time}  1445

  Maybe the next retreat that they have--no, it is not a retreat. Maybe 
the next whatever you call it that they have, what is it? The next one 
they have, they will discuss some of these programs and let the 
American people know how they truly feel about some of the programs 
that affect the most vulnerable people in our country rather than the 
most privileged few, rather than those that made their fortunes on the 
backs of the working people of this country. And do not apologize for 
getting wealthy. How much in tax breaks did the company get under the 
overseas advertising program that we did?
  Ms. KAPTUR. The Overseas Private Investment Corporation, they 
received nearly $10 million in insurance in 1994, for investment in 
other countries. So it shows how he is thinking.
  Mr. HEFNER. Mr. Speaker, if the gentlewoman will yield, that would be 
investing in other countries where the labor force would be cheaper, 
and labor would be more kind to a company of this size, and that the 
benefits would tend to not be as great as they are if they had all of 
their production in this country? Would that be a fair assumption?
  Ms. KAPTUR. That is a fair assumption. What is interesting to look at 
is that, even before this is done, they were making profits in the 
United States. They had a good work force. They were making profits as 
a company. It is not that they had a work force that was not producing 
for them, but they wanted not to just make reasonable profits, they 
wanted excessive profits. They disinfested this country and used our 
tax dollars to do it to us.
  Mr. HEFNER. I think we have to admire the gentleman's intestinal 
fortitude to come to people that think along the same lines and have 
the same philosophy. At least we have to give him that. He goes to 
where he has the potential to get even more goodies from this Congress 
if the budget passes along the lines that our Republican friends want 
to pass it.
  Ms. KAPTUR. I thank the gentleman for bringing up a good point about 
his personal tax benefits that would flow from the tax package that 
they are proposing. He earns, who knows, millions and millions of 
dollars a year. The benefit to him would be absolutely incredible, 
probably in the hundreds of thousands of dollars, figuring his stock 
options, and so forth. So, he certainly would not be the example I 
would have chosen.
  We have so many good companies in this country that are making 
profits that are well-managed and that treat their workers with 
respect, that have respect for people. But I thought that this was just 
a terrible indictment on the freshman class. I hope that the caution we 
have given them today might encourage them to bring business leaders to 
this Congress that are worthy of the kind of recognition that they give 
to this type of gentleman.
  Mr. Speaker, I yield to the gentleman from Michigan [Mr. Levin].
  Mr. LEVIN. Mr. Speaker, I have been talking about one aspect of the 
House freshmen and women.
  I would like to, if I might, talk about another one of their, I 
think, extreme causes. That is essentially the debt ceiling be damned. 
All torpedoes ahead, no matter what we are going to hit or whom we are 
going to hit.
  I wanted to say just a few words about a letter that one of my 
colleagues from Michigan sent to Secretary Rubin, and I quote. The 
gentleman from Michigan [Mr. Smith] said, ``It is my understanding that 
you are considering withholding Social Security and other trust fund 
payments due on March 1, 1996, despite the positive cash-flows of such 
trust funds.''
  There is a grave misunderstanding here. The Treasury is not going to 
withhold Social Security and other trust fund payments. Here is the 
problem: If the debt ceiling is not extended, the Treasury is going to 
be put in this position, as I understand it. They are not going to be 
able to redeem the nonmarketable funds that they have. And if they 
cannot do that, they have to do it by issuing marketable securities. 
Then they may not have the money to honor the Social Security checks 
that would have been mailed to millions and millions of people.
  So, it is not the Treasury Department that is, as the gentleman from 
Michigan [Mr. Smith] put it in his letter, withholding Social Security 
and other fund payments, despite the positive cash-flows of such trust 
funds. It would be that the Republican majority here, I think a 
reckless act it would be, and I find it hard to believe that they will 
ultimately do this, would put the Government in the position of not 
being able to honor these checks.
  Now, even if they could find the funds if cash came in, et cetera, 
the day that these checks were presented, if there were not enough 
money, if there were not enough monies to honor all the checks that 
came in from Social Security on that day, and every other source, none 
of these checks under Federal Reserve policies would be honored, none 
of them.

  There is because the Treasury Department does not at this point have 
the ability to segregate the kinds of checks that are paid. Social 
Security checks for mothers, they all come in. The software is such 
that either they are all handled together or they are not, under 
Federal Reserve rules, handled at all.
  That is my understanding of it. So, the Republican majority, again 
they have got blinders on. They are seeing only what they want to see. 
Here they are being terribly myopic. They are so myopic they cannot 
even see what is in front of them, let alone, what is far away.
  So, I would strongly urge that we do this: I heard a lot of the back 
and forth earlier on the floor, and to my colleague from Ohio, that is 
why I am here. I am deeply troubled. The gentlewoman referred to an 
example of the extremism of some of the House Republicans, especially 
some of the freshman, not all. I think that the ultimate example of 
this is playing around with 

[[Page H1002]]
the debt ceiling. There are other examples pointed out.
  This is the ultimate. The faith and credit of the United States, 
their ability, when checks are presented, including by Social Security 
recipients, the question of whether they will be honored. What do other 
people think about this? I know that my colleagues on the other side, 
they do not like us to call them extremists, but they ought to 
understand that the public is calling them extremists, because playing 
around with the debt ceiling is an example of it.
  I was reading the article on the House freshman in Business Week, the 
January 29 edition. it refers to a Business Week Harris Poll where 45 
percent of the Americans thought of the first-termers on the Republican 
side as extremists. That is a huge number. They are doing so because it 
is based on the reality they see, extreme actions are well as rhetoric.
  So, my reaction to the back and forth today, and all the oratory that 
went on, I know that my colleagues have trouble just giving ground in 
terms of some of these extreme ideas. I know they want to use every 
leverage they can, because they hold there views so deeply. But the 
problem with extreme ideas is that sometimes it causes people to adopt 
extreme means. In this case, the extremity, the extremeness of the end 
leads people to justify extreme means.
  Mr. Speaker, playing around with the debt ceiling is an extreme means 
that is going to lead, I fear, if it were ever undertaken, the default, 
to extreme results.
  So, the mainstream of America, which we are part of here, those of us 
who are pleading that we end the leveraging with the debt ceiling, even 
talking about it, the mainstream of America is saying resist the 
temptation. They talk about people who touch a hot stove, they learn 
having touched it once. In this case, our colleagues on the Republican 
side touched the stove twice at least in terms of shutting down the 
Government, and they got burned, but so did America. You would think 
people would learn. I hope so.
  Ms. KAPTUR. Mr. Speaker, reclaiming my time, and I would be happy to 
yield again, talking about measures that go too far, I think part of 
the problem is who they might be listening to. Again this Mr. Dunlap, 
and this is a direct quote from Roll Call on Monday, January 29, 
suggested, just think about this for a second, that they should abolish 
the Senate, the other body. And if they did that, then they could get 
somewhere.

  Now, a lot of us have problems with the way things are set up. We are 
not always pleased with the way we make our laws in this country, but I 
do not think that that remark was made in jest. And I think there are a 
lot of people that would want to dismantle the very tenets of our 
Constitution. To me that borders on anarchy. That is not just reform. 
That someone would come before them and offer that as a proposal, I 
find not just to be off the edge, I find that to be about as extreme a 
recommendation as they could make.
  It goes to the very fundamental rights of representation that the 
small States and the large States have in our country. It goes back to 
the founding of the Republic. What gives this person the right to speak 
before this group in this way?
  Mr. LEVIN. Mr. Speaker, if the gentlewoman will continue to yield, I 
think she put her finger on it. There is an obligation on the part of 
some of our colleagues on the Republican side who really do not like 
this extremism, who have said to a number of us on many occasions 
privately that it is reckless, and sometimes they used the word 
``crazy,'' that they now speak out publicly.
  We should not leave here tomorrow or the next day wit the debt 
ceiling issue up in the air. It could have all kinds of results. And, 
look, it might help us politically, Democrats, if the Republicans 
playing with fire unleashed an inferno, but I do not want that and my 
colleague does not want that.
  What the Republicans here should do is to say, look, we are reluctant 
to give up this leverage, if they think it is. It is not, and we are 
going to cut it cleanly. Cut it cleanly, extend the debt ceiling and 
let us argue out these important issues. We are in favor of a balanced 
budget. We are arguing out how we do it. Let that be the argument, not 
the debt ceiling.
  I deeply appreciate the distinguished gentlewoman from Ohio yielding 
to me. I just wanted to come to the floor and to straighten out this 
issue about Social Security, the debt ceiling that would cause the 
checks perhaps to be dishonored, not because the Treasury was taking 
steps. The onus is on our colleagues over there, and I just pray that 
they will act responsibly and do it this week.
  Ms. KAPTUR. Mr. Speaker, I thank the gentleman for raising a very 
important matter that frankly we could have taken care of weeks ago, 
months ago. We do not have to be constantly operating at the edge.
  I think, as the gentleman says, and he is a very moderate individual 
in his own views, that perhaps people feel so strongly that they think 
this is their only alternative. But for the sake of the Nation I think 
it is best to put on the shelf some of the deeper urges we might have 
and for the sake of the Nation do what is right for all of the people, 
not just for a small subset or how we might personally feel about 
something.

                          ____________________