Paul Kanjorski

Mr. KANJORSKI

Mr. KANJORSKI. Madam Speaker, I rise to support and speak about the financial services modernization conference report pending before us. In general, because the financial services industry is undergoing sweeping changes--driven in part by domestic market forces, international competition, regulatory judgments, and technological advances--we need to update our federal laws. The compromise legislation that we are considering represents a reasoned, middle ground that strikes an appropriate balance by treating all segments of the financial services industry--banking, securities, and insurance-- fairly and equitably. Among other things, this bill should increase competition, promote innovation, lower consumer costs, and allow the United States to maintain its world leadership in the financial services industry. From my perspective, this legislation also benefits consumers and protects them pragmatically, although not perfectly. The bill that we are voting on today contains a number of important elements that should be enacted into law. First, the legislation takes prudent steps to prevent the indiscriminate mixing of banking and commerce. As a result, we will prevent the development of the cozy relationships between financial firms and commercial companies that helped lead to the disruption of the Japanese banking system earlier this decade. Additionally, the legislation preserves the viability of the national bank charter and the role of the Treasury Department in regulating our financial system. The bill further establishes functional lines of financial regulation. As a result, regulators who know the financial activities best will oversee them. Consumers will also receive new protections for their financial privacy as a result of this bill. For the first time, all financial institutions will have an ``affirmative and continuing obligation'' to respect the privacy of their customers, and the security and confidentiality of their personal information. Additionally, when a customer first opens an account--and at least annually thereafter--financial institutions must clearly and conspicuously disclose their privacy policies and practices. The bill additionally protects and improves our community development laws. The legislation specifically states that ``[n]othing in this Act shall be construed to repeal any provision of the Community Reinvestment Act of 1977.'' Moreover, as a result of this soon-to-be law, banks will only be able to enter into new activities or merge if they are well capitalized, well managed, and in compliance with CRA. Finally, the legislation includes a number of other important consumer protections such as prohibitions against coercive sales practices, and mandatory disclosures abut the potential risks and the uninsured status of investment products and insurance policies. Banks must also make full disclosures of ATM fees. Each of these changes to current law is important, and Congress should pass this legislation to enact them. federal home loan bank system reform During the deliberations over this legislation, I also sought to ensure that every community shared in the rewards of financial modernization. As a result, this bill helps to guarantee that community banks will not be crowded out of the financial marketplace of tomorrow. The report before us grants community banks the same powers and rights that larger financial institutions have accumulated through regulatory orders, and allows them to organize in a manner that best fits an institution's business plans. Additionally, I assiduously worked to ensure that this legislation would not place small financial institutions at a competitive disadvantage. Another way that the bill helps small banks to compete and small communities to thrive is found in Title VI. I am especially pleased that this compromise agreement makes significant strides in updating the Federal Home Loan Bank (FHL.Bank) system. The bill ensures a vibrant system able to meet the challenges of the next century with modern rules and state-of-the-art financial products. America's homebuyers, small business owners, small farmers, and small communities will benefit from a reinvigorated FHL.Bank system. Specifically, the legislation establishes voluntary membership on equal terms and conditions for all eligible institutions. The bill also expands access to FHL.Bank advances for community financial institutions, which are banks and thrifts with less than $500 million in assets. The changes in allowable collateral for FHL.Bank advances for community financial institutions pave the way for enhanced targeted economic development lending. There was much need for this reform. Even though Congress authorized economic development lending in 1989 and the Federal Housing Finance Board (Finance Board) wrote permissive rules to encourage it, the system's collateral laws severely restricted such effects. It was as if we were simultaneously saying, ``go make these loans, but they are illegal to use as collateral.'' Now, as a result of this bill, a framework is in place for community financial institutions to offer safe, sound, and fully collateralized economic development loans. I expect the FHL.Banks and the Finance Board to prioritize the system's economic development efforts. Additionally, the legislation creates a flexible capital structure that is based on the actual risk of the system and not on antiquated subscription capital rules. This new, more permanent, capital system features two classes of stock, a revised leverage ratio, and the parameters for establishing a risk-based capital standard. In short, these changes--which come as a result of a true bipartisan effort-- reflect the House-passed product, which called for the creation of a modern capital system as opposed to another study of capital plans by the General Accounting Office. The modernization of the capital structure will be important as the FHLBank system fosters increased competition among lenders and assists well-capitalized community banks in obtaining stable and attractive sources of funding. These increases in liquidity will also translate into increased support for community and economic development lending within America's rural and urban neighborhoods. Additionally, the capital modifications will alleviate some of the pressure to arbitrage excess capital to earn competitive returns for member institutions. The bill additionally modifies the formula used to allocate the $300 million per year in the Resolution Funding Corporation (REFCorp) obligations of the FHLBank system. In crafting the legislation, we sought to find a fair and equitable way to allocate the obligation, without increasing or decreasing the FHLBanks' overall contribution to resolving the savings and loan crisis. While switching to a flat percentage of net income is an improvement, the 20 percent figure ultimately adopted by the conference is not budget neutral and will significantly increase the FHLBanks' annual payments. For example, under current estimates, next year the FHLBanks will pay 33 percent more toward their REFCorp obligation than in 1999. This was not the intended purpose of the change. The intended purpose was to promote stability for the FHLBanks. Title VI also addresses governance issues. The bill delegates to the FHLBanks a number of day-to-day management issues such as setting dividends, establishing requirements for advances, and determining employee compensation. As the FHLBank system modernizes, these prudent measures will allow the Finance Board to focus its attention more intensely on safety and soundness concerns. More regional control is still proper and should be sought for the FHLBanks regarding various management decisions, such as determining a director's compensation. The conference committee also went too far in decentralizing some governance functions. For example, the legislation now allows for the direct election of the Chair and Vice Chair by each FHLBank's Board of Directors. The continued appointment of the Chair and Vice Chair by the Finance Board would help to ensure that the government-sponsored enterprise focuses on its public mission. Although I would have preferred that the legislation include an Economic Development Program (EDP) for FHLBanks, the conference ultimately decided not to include one at this time. An EDP, modeled after the highly successful Affordable Housing Program, has merit and could finally allow the FHLBanks to do for economic development lending as they did for housing finance. I will therefore continue to pursue the issue of creating an EDP for the FHLBanks after we pass this bill into law today. In sum, the Federal Home Loan Bank System Modernization Act of 1999 contained in the bill takes some important and positive steps in modernizing the laws and rules governing the FHLBanks. There remains, however, a need for some additional refinements, and I will work diligently with other Members of Congress to enact them into law in the future. long-term concerns A sweeping, industry-wide regulatory reform bill like this one rarely comes along. Just as was the case after we enacted the Telecommunications Act of 1996, unintended consequences will occur. Among my concerns are the consequences of an ever-evolving global financial system, the effects of the bill on market concentration, and the insufficiency of privacy protections. Our financial services marketplaces are increasingly global. If managed effectively, Americans ought to benefit from the new competitive companies created by this legislation by receiving more and better goods and services at a lower cost. Although this legislation promotes competition in our domestic markets, it does little to respond to the potential dangers resulting from economic globalization. Jeffrey Garten, a former Clinton Administration Under Secretary of Commerce for Internal Trade, recently published an opinion piece in the New York Times on this point. In it he ponders how a sovereign nation responds effectively to problems when politics are national and business is global. Now that we have passed this bill, Congress needs to spend more time strengthening the ability of the worldwide financial system. A wave of acquisitions and mergers in the financial services industry will also result from this bill. Consequently, I am worried about the concentration of wealth and power in the hands of a few powerful individuals and companies. Moreover, such concentrations could result in new risks. In a recent speech, Federal Reserve Board Chairman Alan Greenspan said that megabanks are becoming ``complex entities that create the potential for unusually large systemic risks in the national and international economy should they fail.'' In short, we need to attentively watch our changing financial marketplace in order to protect consumers from potential abuses of corporate power and guard taxpayers against another bailout like the savings and loan crisis of the 1980s. Finally, although this bill contains the strongest federal privacy protections ever enacted into law, I have reservations. The passage of this legislation does not diminish the need for Congress to develop and enact comprehensive legislation in this area in the future. Dramatic transformations in the financial services industry suggest that the flow of information is no longer limited to notes penned on an application, paper compiled in a folder, or comments entered into a passbook. The rise of computerized financial networks allows corporations to amass detailed information in electronic files and share these data with others. While such databases may help businesses to better serve their customers, they can also result in a loss of confidentiality. Even though the conference agreement contains new federal rules allowing consumers to op-out of sharing their information with third parties, we must take further action once we understand this electronic revolution more completely. Although we may be completing our work today, it is important for us to remain vigilant in each of these areas. I, for one, plan to continue to closely monitor and carefully examine each of these issues. closing Madam Speaker, in closing, I wish to thank Chairman Leach and Ranking Member LaFalce for their strong leadership and bipartisan efforts to shepherd this complex bill through the legislative process. I also want to thank my colleague Richard Baker, who serves as the Chairman of the Subcommittee on Capital Markets, Securities, and Government Sponsored Enterprises on which I am the Ranking member. Congressman Baker and I have worked for more than five years to enact legislation to modernize the Federal Home Loan Bank system, and I am grateful for his advice and counsel in achieving this goal. Our success in seeing this issue through demonstrates the positive results one can achieve when Democrats and Republicans put politics aside and work cooperatively to achieve a public policy goal. This conference report is the culmination of more than 20 years of work on the part of Congress, several Administrations, and federal financial regulators to create a more rational and balanced structure to sustain our nation's financial services sector. While I may have concerns about market concentration, globalization, and privacy, overall this is a good package that effectively modernizes our domestic financial system, while ensuring strong protections for consumers and communities. I support this bill.

Mr. KANJORSKI. Mr. Speaker, on rollcall No. 570, the final passage of the conference report on S. 900 the Gramm-Leach-Bliley Financial Services Modernization Act of 1999, I was away from Washington on official business. Had I been present, I would have voted ``yea.''

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to pay tribute to a remarkable young boy from my District in Hazleton, Pennsylvania-- Matthew Nonnemacher. Matthew is only eleven years old, but he will be a participant this Friday in the White House Conference on Philanthropy. While most boys and girls his age are more concerned with getting their homework done, Matthew has been helping his disadvantaged neighbors. Last year, Matthew's fourth grade teacher at St. Joseph Memorial School, Terri Smith, gave her students an assignment to draw a picture of the one wish they would like to be granted if they were on top of the world. Matthew's picture depicted him giving money to poor people. Later, after having asked his parents what would be the best way to help the poor, Matthew wrote a letter to the editor of his local newspaper, the Hazleton Standard Speaker, with the same question. Matthew received numerous letters suggesting projects such as food drives, clothing collections, and a dime drive. Matthew changed the latter suggestion to a penny drive, because he thought it would be more fun, and set an ambitious goal of collecting one million pennies, or $10,000, a donate to the United Way of Greater Hazleton. With the help of then-United Way of Greater Hazleton Executive Director James Settle, Matthew's project was named ``A Million Ways to Care'' when it began in August of 1998. Matthew visited almost every civic organization in the city with a request for pennies and placed hundreds of two-quart collection jars throughout his community of 26,000 people. School students throughout the community also enthusiastically collected pennies for him. On October 22, 1998, the pennies were collected and loaded on a flatbed truck, paraded through town with a police and school bus escort, and taken to First Federal Bank, where an enthusiastic crew of bank employees and volunteer spent thirteen hours counting more than 5.5 tons of pennies. The final sum amounted to $18,196.91 or 1,819,691 pennies, which was promptly presented to the United Way of Greater Hazleton on last year's National ``Make a Difference Day.'' Mr. Speaker, Matthew Nonnemacher represents the best of Northeastern Pennsylvania. Matthew was once asked why he wanted to help the poor and his answer was plain: ``So the poor can have everything that we have-- like food, clothes, and a place to stay.'' I am glad the White House has recognized Matthew's achievement by inviting him to the White House Conference on Philanthropy. Matthew's dedicated parents, John and Sandi, also deserve praise for their heroic efforts to guide and help their son. I am pleased to have this opportunity to bring Matthew's achievements to the attention of my colleagues and wish Matthew the best in his future philanthropic efforts.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I yield myself such time as I may consume. Under the Federal Reports Elimination and Sunset Act of 1995, a host of periodic reports to Congress from agencies and departments throughout the government are slated to sunset on December 21, 1999, unless they are specifically reauthorized. This bill accomplishes that reauthorization for agencies and departments within the jurisdiction of the Committee on Banking and Financial Services. The 1995 Sunset Act was not as broad as was originally believed when it was actually applied to specific reports. After an entire list of reports to Congress had been winnowed down by exceptions to the Act itself, by the fact many reports were not truly periodic, and by the fact that many periodic reports expired by their own terms, a limited list fell within the sunset provisions. This bill renews those which remain pertinent to today's conditions. For a few examples, it reinstates reports having to do with discriminatory housing practices, assisted living, bank fees and services, credit card profitability, credit card prices, the Equal Credit Opportunity Act, the Truth in Lending Act, and the Neighborhood Reinvestment Act. Forty-two reports in all are reauthorized. Perhaps most important among these are the President's Economic Report, the annual report of the Council of Economic Advisers, and the semiannual Humphrey-Hawkins Report of the Federal Reserve. As to the latter, and in anticipation of press inquiries, I would note that the Federal Reserve has assured Congress that regardless of whether H.R. 3046 becomes law prior to December 21, 1999, the Federal Reserve will treat the present requirements of the Humphrey-Hawkins Act as law in the future. I hope this fact forestalls any speculation that Congress will be unable to do adequate oversight of the Federal Reserve should the December deadline be unobtainable. Additionally, it would be my expectation that departments and agencies would submit those other reports listed in H.R. 3046 for this calendar year as if this bill were Public Law, since these documents are vital to oversight functions of the Committee on Banking and Financial Services. Mr. Speaker, the example of the need for this law reflects what sometimes unintended consequences occur in the name of reform and hastily drawn activity as the 1995 act was. I want to commend my colleagues on the other side, and particularly the gentleman from Iowa (Mr. Leach), for recognizing that the oversight of the Congress, and particularly the Committee on Banking and Financial Services, is so essential, and that these reports are part of good government, to have the information and knowledge contained therein, if the Congress is to appropriately act. I am pleased that we are doing this today in a bipartisan way with this legislation and that it was drafted and moved in that spirit. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to bring to the attention of my colleagues a very special celebration taking place in my district this week. The Greater Wilkes-Barre Central Labor Council will gather to recognize the contributions of organized labor over the last century. I am pleased and proud to have been asked to participate. A number of my good friends at the Labor Council will preside at this event: President Sam Bianco, Vice-President Joseph Capece, Secretary Lois Hartel, Treasurer Joseph Gorham and Trustees Ed Harry, Ed Hahn, Ed Walsh, David Williams, and Jerry Kishbaugh. The banquet will feature a comprehensive slide show that depicts the struggles of labor over the last century, highlighting such victories as anti-child labor laws, free public education, voting rights, equal pay for equal work, Social Security, job-safety, workers compensation, civil rights, the eight- hour work day, the minimum wage, and other triumphs. The program will also highlight the historic contributions of the Greater Wilkes-Barre Central Labor Council, which received the 1998 National AFL-CIO Model Cities in Community Services Award. The Greater Wilkes-Barre Central Labor Council was founded in September 1894 by a group of six men: John J. Casey and Daniel Shovlin of the Plumbers and Steamfitters Union, Pat O'Neill and John Gibbon of the Stone Cutters Union, Amos Ayers of the Carpenters Union, and David Brovea of the Painters Union. In the beginning, fear of being blacklisted and jailed forced the Council members to hold secret, hidden meetings. The first such meeting was held in an old stone yard until rain forced the gathering to move under a bridge. There, in the rain-soaked autumn air, the Labor Council was founded. John J. Casey went on to head what was then called the Central Labor Union, or CLU and the Building Trades Council. By 1902, 118 local unions were affiliated with the CLU. In 1903, United Mine Workers President John Mitchell told the American Federation of Labor convention in Boston that Wilkes-Barre was the ``best organized city in the United States.'' Within the next few years, it was common to see as many as 300 members at the bi-monthly meetings. The father of Labor Council was John J. Casey, who sought to unite all the trade unions in the event of a major problem with local contractors. Casey, a central figure in the history of the local labor movement, came from an inspiring background. Born in a company-owned mining shack in the anthracite region, Casey lost his father in a mining accident at age eight. With no compensation laws in place at that time, Casey was forced to leave school and become a breaker boy, working ten-hour days for pennies. It was here that the seed of labor activism was born in John J. Casey John J. Casey realized legislation was needed to obtain equal labor rights and social justice for working men and women. He successfully ran for State Representative and, later, for the United States Congress. When he won his congressional seat in 1912, John J. Casey became the first labor leader ever elected to that body. During his tenure, he was instrumental in the passage of laws prohibiting child labor and supporting vocational education in public schools. Mr. Speaker, I am extremely proud of the labor unions in Northeastern Pennsylvania. The unions not only brought fair labor practices to the area, they saved lives, protected our children, and are responsible for much of the wonderful quality of life we enjoy here. I join with this hardworking group of dedicated individuals in paying tribute to their origins, their heroes, and the rank-and-file laborers whose rights they so fiercely protect every day. I applaud the Greater Wilkes-Barre Central Labor Council for bringing the proud history of local labor unions to the attention of the Luzerne County community and send my sincere best wishes for continued success.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to pay tribute to a distinguished journalist, community leader, and close friend from my District in Hazleton, Pennsylvania--Ray Saul. This month, the Sons of Italy Lodge 1043 will honor Ray as ``Italian American of the Year.'' I am pleased to have been asked to participate in this event. A native of Hazleton, Ray is a graduate of Hazleton High School and Penn State, where he earned a Bachelor's degree in journalism. He was the editor of his college yearbook and was cited by the All College Board for outstanding achievement as a student leader. A Navy veteran of World War II, Ray entered the service as an apprentice seaman and retired as a Lieutenant Commander after a combined 21 years of active and reserve service. Ray is best known to the community for his 47 years of dedicated journalism at the Hazleton Standard-Speaker newspaper. Ray was sports editor at the Standard-Speaker for twenty-seven years and managing editor for the last fifteen years. Since his retirement in 1997, he continues to write sports columns and other features for the newspaper. As a journalist, Ray was an active member of the Associated Press Sports Editors Association and the Managing Editors Association. In 1995, he was honored by the Department of Defense for his feature stories of various Hazletonians serving in World War II. Ray received an Associated Press Citation for a story on a local basketball team's success. In recognition of his writing and participation in sports, he was honored by several chapters of the Pennsylvania Sports Hall of Fame and the PIAA District 2. Ray Saul has always recognized the unique responsibilities inherent in leading a local newspaper which is truly the voice of its community. Under his leadership, the Standard-Speaker could be relied on for fair and accurate reporting of stories important to the Greater Hazleton area. Ray always put the interests of the community first. Ray's accomplishments are far reaching into the community as well. He is an active Kiwanian and has been awarded the International Tablet of Honor once and the Kiwanian of the Year twice. He has been an active Penn State alum, helping to raise funds for new buildings on the Hazleton Campus. In 1984, he was the fifth person in the then-50 year history of the Hazleton campus to receive the Penn Stater Award, for outstanding service to the university. Mr. Speaker, Ray is the son of the late Santo Saul and Genevieve DeJoseph. All four of his grandparents were Italian immigrants. From his distinguished Navy career his beloved journalism career, Ray is a true example of an American success story. Even in retirement, he and his wife Nell are respected, active members of the community. I applaud the Sons of Italy for their choice of this year's honoree and am proud to congratulate Ray on yet another prestigious award. I send him my heartiest best wishes for continued health and happiness.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to bring to the attention of my colleagues the 75th Anniversary of the General Federation of Women's Clubs (GFWC) of Luzerne County. The GWFC will celebrate this milestone at a breakfast meeting on Saturday, October 9, 1999. I am pleased and proud to have been asked to participate in this event. Since 1924, the GFWC has been a community-based, volunteer organization representing women of all ages. Early records show meetings held in two parts, the Board of Directors and a Presidents Meeting, which involved club presidents from all over the county in attendance. The purpose of the organization was to bring together the officers of all area women's clubs and consolidate various volunteer programs and projects. The Luzerne County GFWC currently consists of fourteen volunteer clubs representing almost 600 women of all ages. Many worthy causes have benefited from the GFWC's efforts throughout the years. Federation Day, held in conjunction with Boscov's Department store, has brought thousands of dollars to area social service agencies. In the early 1980s, the GWFC donated almost $40,000 to the Domestic Violence Service Center to aid a shelter for battered women and children. Other GWFC projects have included supporting Drug Free School Zones signs for all area schools and universities, rooms for terminally ill patients at Hospic St. John, hearing aids for Wyoming Valley Childrens Association, a van for Catherine McCauley Center, wishes for terminally ill children under the Make A Wish Foundation, a rescue boat for the Luzerne County Sheriff's Office, and a beautiful new marquee for the Kirby Center. The General Federation of Women's Clubs of Luzerne County is affiliated with the national GFWC in Washington, D.C. and the Pennsylvania GFWC. Consisting of six departments--arts, conservation, education, home life, international affairs, and public affairs--the Federation's structure helps it address the needs of the community and respond to calls for help. Nationally, some twenty-seven million volunteer hours and more than $56 million have been donated to volunteer projects since 1996. Locally, the GFWC proudly joins in this massive volunteer effort each and every year. This year, the local club joins in the effort to assist our libraries, turning its volunteer resources to the America's Promise program to ``keep our library doors open.'' Mr. Speaker, the Luzerne County GFWC is an essential element in the high quality of life we enjoy in Northeastern Pennsylvania. These dedicated women take time out of their busy lives to touch the lives of thousands of others. I am proud to join with the community on this milestone anniversary in thanking the General Federation of Women's Clubs and its fourteen affiliates for 75 years of good work and community service. Northeastern Pennsylvania is truly richer through the hard work of these dedicated individuals.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to pay tribute to the Honorable Fred Pierantoni, III, the Justice of Magisterial District 11- 104 in my Congressional District and a good friend of mine. Justice Pierantoni will be honored as ``Person of the Year'' at the 22nd annual Columbus Day Banquet of the Italian American Association of Luzerne County. I am pleased and proud to have been asked to participate in this event. District Justice Pierantoni, the son of Fred and Betty Pierantoni of Dupont, is a graduate of Pittston Area High School, Wilkes University, and Temple University School of Law. He served as an Assistant District Attorney for Luzerne County and was the senior trial assistant and chief juvenile prosecutor for that office. First elected District Justice in 1991, Justice Pierantoni is active in many professional and community activities. He is a member of both the Pennsylvania and American Bar Associations. He chairs the prestigious Pennsylvania Supreme Court committee that is charged with amending and formulating rules to be followed by District Justices statewide. Justice Pierantoni is the former Chair of the Publications Committee of the Pennsylvania Special Court Judges Association. He is a member of the Luzerne County District Justice Executive Commission, the Wilkes-Barre Law and Library Association Executive Committee, and the Luzerne County Domestic Violence Task Force. He is legal advisor to many non-profit volunteer and youth groups throughout the area. District Justice Pierantoni is active in the community as well, having held a seat on the Pittston Chamber Board of Directors, and several cabinet posts in the Hughestown Lions organizations. He is a member of the Board of Directors of Holy Mother of Sorrows Church in Dupont. Justice Pierantoni is Parliamentarian of the Italian American Association of Luzerne County and a member of the Fraternal Order of Eagles, Polish American Citizens Club, and St. John's Lodge. He lectures for Marywood College, Luzerne County Community College, and the Luzerne County District Attorney's Office. Mr. Speaker, Fred Pierantoni is a dedicated professional, committed to his community and the justice system in Luzerne County. I applaud the Italian-American Association's choice of this year's honoree and am pleased to join with them in honoring this fine Pennsylvanian. I extend my sincere best wishes to Justice Pierantoni as he accepts this prestigious award.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, it is with great pride that I rise today to bring the remarkable life of Mrs. Min Matheson to the attention of my colleagues. On September 24, the people of the Wyoming Valley will pay a long overdue tribute to Min, as a historical marker is dedicated to her on the Public Square in Wilkes-Barre, Pennsylvania. I am pleased and proud to join in this historic tribute. One of eight children, Min Lurye was born in Chicago in 1909. her father, a Jewish immigrant, was a cigar maker and a militant labor leader. Min grew up in a household of radical labor meetings, with her father organizing rallies and strikes within the cigar industry. Max Lurye fought organized crime and big business at the same time, once even having a confrontation with Al Capone. Min's childhood occurred in an atmosphere of violence and fear in the labor movements as her father saw some of close friends killed for resisting mob control of the industry. Max's legacy was continued by both his daughter Min and son Will, who also dedicated his life to labor causes. When she was nineteen, Min met and fell in love with Bill Matheson. Defying the convention of the time, they set up a household together without marrying. At Bill's urging, Min traveled to New Jersey to help striking textile workers, but the strike was crushed after six months and Min was uncertain of her next move. They soon moved to New York City and began careers in the garment industry. Min worked in a dress factory until Bill accepted a position in Pennsylvania with the International Ladies' Garment Workers Union (ILGWU). When they decided to have children, they married and Min stayed out of union affairs for a time to raise her two small children. In 1944, the New York ILGWU asked Bill and Min to move to Northeastern Pennsylvania, where dozens of small garment factories were sprouting up. Union official asked Min and Bill ``to clean up the mess down there,'' and within a few years, Min was General Manager of the Wyoming Valley ILGWU and Bill was he Director of Education. During strikes, she walked the picket lines with the rank and file and stood her ground when confronted by factory bosses. Eventually, Min realized the press was a union's best friend and regularly used radio shows to bring the union's case to the attention of the public. She organized union blood drives and the union locals gave freely to the United Fund. The community began to accept and appreciate the good works of the ILGWU. At one point, Min realized the union needed to become more active in the political arena and began the strong relationship between labor and the Democratic Party in Northeastern Pennsylvania which still exists to this day. Mr. Speaker, Min and Bill Matheson were the parents of the garment industry workforce in Northeastern Pennsylvania. they organized it, fought for it, and gave it standing in the community. Seven hundred people turned out at a farewell salute after Min and Bill accepted a transfer to New York in 1963. Min and Bill chose to come back to the Wyoming Valley upon retirement. They moved back in 1972, a few months before the Susquehanna river overflowed her banks, flooding the entire area and devastating the lives of tens of thousands of area residents. An organizer by birthright, Min immediately helped to organize the Flood Victims Action Council to speak for those devastated by the disaster. She brought her concerns and plight of the flood victims to the immediate attention of the federal government and worked closely with then-Congressman Dan Flood to insure relief for the thousands of displace residents. I am proud to have worked closely with Min on that effort, acting as legal counsel to the Flood Victims Action Council. Even in retirement, Min Matheson had found a way to better the lives of her neighbors in the Wyoming Valley. She continued to contribute her time and energy to our community until her death several years ago. Then-Wilkes-Barre City Councilman Joe Williams said it best: ``There should be a statute of Min on Public Square for all that she has done for this Valley.'' Mr. Speaker, I am pleased and proud to join with my good friends at the ILGWU, the Commonwealth of Pennsylvania, and the entire community in paying a much over-due tribute to this beloved figure in our region's history, Mrs. Min Matheson.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to bring to the attention of my colleagues the 75th anniversary of a fine institution of higher learning--College Misericordia of Dallas, PA. I am honored to have been asked to participate in the kickoff event of the anniversary on September 24. Founded and sponsored by the Religious Sisters of Mercy in 1924, Misericordia was the first 4-year college, the first Catholic college, and the only all-female institution in Luzerne County, with 37 young women in its first freshman class. Offering both bachelor of arts and bachelor of science degrees, the college boasted 22 faculty members, 16 of them Sisters of Mercy. Today the bustling campus is home to more than 1,700 students, 83 full-time faculty and 65 part-time faculty. Misericordia offered its first summer courses in 1927 and began its graduate program in 1960. In 1975, Misericordia opened its enrollment to men and began to offer continuing education courses. Mr. Speaker, College Misericordia is an integral part of the Northeastern Pennsylvania community. In 1972, when Tropical Storm Agnes caused the Susquehanna River to overflow her banks, more than 100,000 people were left without food and shelter. College Misericordia became a shelter and hospital, with the benevolent Sisters of Mercy administering aid to the victims of the disaster. Mercy Hospital, totally inundated by raging flood waters, evacuated its patients and staff to College Misericordia. The college annually offers community-based cultural and athletic programs. Each summer, former members of the National Players, a Shakespearian theater company, present Theater-on-the-Green, bringing the wit and wisdom of William Shakespeare to the area. The college boasts an outstanding art gallery, the MacDonald Gallery, and the Anderson Sports and Health Center, which offers community-based, health-related activities for young and old. Still under the sponsorship of the Sisters of Mercy, the college currently has a lay president, Dr. Michael A. MacDowell. A liberal arts college, it is especially known for its Education, Health Sciences, Humanities, Social Work, Business, Mathematics, and Natural Sciences programs. The kick-off of the anniversary celebration is the dedication of the Mary Kintz Bevevino Library on Friday, September 24. A 1987 graduate of College Misericordia and later a Trustee until her death in 1993, Mary saw a real need for a new library at Misericordia. Her family has helped to make this dream a reality in Mary's honor. Beginning with one building 75 years ago, the college now proudly boasts 13 beautiful buildings. Mr. Speaker, many alumni, students, faculty, staff and Sisters will pay tribute on Saturday to the spirit of giving which was the ideal of the Founding Sisters. They will volunteer their time and efforts around the community in various projects of Habitat for Humanity, St. Vincent Soup Kitchen, Catherine McCauley House, and Mercy Center, just to name a few. It is a fitting start to an anniversary year and a fitting tribute to an order of religious Sisters whose very purpose is to help others. I am extremely pleased and proud to have had the opportunity to bring the history of this fine institution to the attention of my colleagues. I send my sincere best wishes for continued success to College Misericordia.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to pay tribute to Mr. John L. Nespoli, who has been named Community Leaders of the Year by the Arthritis Foundation of Eastern Pennsylvania. I am proud to have been asked to participate in this event. This prestigious award has been described by Arthritis Foundation Chairperson Deborah D. Hannon as an honor ``presented to an individual who epitomizes the word `leader' in both their personal and professional life. The recipient is someone who gives back to their community as a way of thanking them for achieving success in their own life.'' John Nespoli is the president and chief executive officer of Mercy Health Partners and one of the senior vice presidents of Catholic Healthcare Partners, which makes him responsible for a $200 million health care system, including a tertiary referral center, community hospitals, skilled nursing facilities, home health care, physician group practice and managed care operations. In addition, John serves on a large number of diverse community organizations. A native of Berwick, John is a dedicated professional with strong commitment to our region. He is the husband of the former Geri Kamps and the father of twins. Mr. Speaker, I applaud the Arthritis Foundation for this year's choice for the ``Community Leader of the Year'' and am pleased to send my year very best wishes to John as he accepts this prestigious honor.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to bring to the attention of my colleagues St. Mary's Polish National Catholic Church in Duryea, Pennsylvania. The parish will celebrate its Centennial Anniversary with a banquet this month and I am proud to have been asked to participate in this event. In the nineteenth century, many immigrants from Eastern Europe flocked to Northeastern Pennsylvania to pursue the American dream of religious and economic freedom. In 1897, a group of Polish immigrants in the area found a true leader in a young priest named Francis Hodur. He guided them spiritually and, under his leadership, a ``mother church'' was founded in Scranton. Today, this beautiful church is known to all as St. Stanislaus Cathedral. A year later, another group of Polish Catholics invited Father Hodur to help them organize their own parish. They applied for a charter and in September of 1899, a charter was granted to Saint Mary's Polish National Catholic Church. Through the hard work and dedication of the parish, a new church was built and dedicated by 1908. While renovating and improving the original church building over the years, the parish has striven to keep and restore the beautiful original statues, altars, and other church artifacts. Mr. Speaker, this proud parish in Duryea has much to celebrate. The hard working, dedicated parishioners at this beautiful church contribute to the fine quality of life that we enjoy in Northeastern Pennsylvania. Father Thadeusz Klucek and the church's members help to continue the traditions of the country of their ancestors so that generations to come will feel the spirit and dedication of the small group of Polish immigrants who founded St. Mary's. I am pleased to have had this opportunity to bring this proud church's history to the attention of my colleagues and send my heartiest congratulations and best wishes to everyone at St. Mary's Polish National Catholic Church.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to pay tribute to the Very Reverend Herbert G. Nahas from Northeastern Pennsylvania. This month, Rev. Nahas will observe the 50th Anniversary of his ordination at a community-wide celebration on September 19. I am pleased to have been asked to participate in this tribute. Born in Pawtucket, Rhode Island, Rev. Nahas is the son of Rev. George Nahas and Elizabeth Kassab. He graduated from Brown University. Before entering the priesthood, he served his country in Army Intelligence for five years. Because of his fluency in both French and Arabic, young Herbert Nahas accompanied General Martin G. Eddy, of the Ninth Infantry Division in the invasion of North Africa, and was later assigned to the staff of General Eisenhower in Algeria. Rev. Nahas' interest in theology began at an early age as he served and studied the church under his father. He later studied with Father Wakeem Dalack of St. Nicholas Cathedral in Brooklyn. Rev. Nahas came to our area in 1951, spending 47 of his 50 years as a priest at St. Mary's Antiochian Orthodox Church in Wilkes-Barre. Celebrating its 95th anniversary this year, St. Mary's holds the distinction of being one of the oldest Antiochian Churches in the nation. In 1961, Bishop Anthony made Revered Nahas an Archpriest with the title of ``Exarch.'' Shortly thereafter, the Reverend began to raise funds for a new church and the new building was completed and dedicated by 1968. In addition to serving his parishioners, Rev. Nahas has also served the Wyoming Valley community. He has served on numerous local boards, including those of the United Way and American Heart Association. He organized ``Father Nahas' Senior Citizens Organization.'' After Wilkes- Barre was inundated by tropical Storm Agnes in 1972, Rev. Nahas opened his parish hall for use as a shelter for displaced flood victims. He is a much sought-after speaker, frequently addressing the local Rotary, Kiwanis, and Lions clubs. Mr. Speaker, Rev. Herbert Nahas is an icon in Northeastern Pennsylvania. He and his wife, Alice, raised three children here and now enjoy five grandchildren. His commitment to his parish and the community is legendary. He is loved by all those who have been fortunate enough to have been touched by his spiritual guidance and kindness over the years. I am proud to join with the community in sending my very best wishes to the Very Reverend Herbert G. Nahas on this momentous occasion.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to pay tribute to a noted community leader, Mr. Thomas E. Pugh, as he is honored by the Ethics Institute of Northeastern Pennsylvania at their annual dinner. I am pleased to have been asked to join in this event. A former CEO of the John Heinz Institute of Rehabilitation in Wilkes- Barre, Tom Pugh now works at Allied Services in Scranton. He began there as director of communications and served later as vice president of corporate services better assuming his current role as vice- president of rehabilitation. Tom is a dedicated professional who is active on both the local and international scene. Since 1994, Tom has worked with the Litewska Children's Hospital in Warsaw, Poland as a consultant on hospital privatization and foundation formation. He conducts a corporate program that provides equipment to the Association of Disabled People of Lithuania. Tom also serves as a consultant to Trnava University Healthcare Management Education Project in the Slovakia Republic. Locally, Tom is active in the Arthritis Foundation, the James S. Brady Center, the Northeast Region Board of the Health Education Center, and the Northeast Regional Cancer Institute. He serves as Executive Vice- President of the Board of Pennsylvania Association of Rehabilitation Facilities. Mr. Speaker, Tom Pugh is a dedicated professional and community leader. His commitment to improving the lives of the disabled both here and abroad is well known. The Ethics Institute of Northeastern Pennsylvania, which was established to increase the understanding of contemporary ethical issues in business, government, politics, health care and social issues, is wise to fete him. I send my sincere best wishes to Tom as he accepts this prestigious award.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to bring to the attention of my colleagues the 30th anniversary of one of America's leading technological enterprises: Schott Glass Technologies of Duryea, Pennsylvania. Schott Glass Technologies will mark its anniversary with a dinner on August 12. I am honored and proud to have been asked to attend and participate in this event. A wholly-owned subsidiary of Schott Corporation of Yonkers, New York, Schott Glass Technologies now employs 450 people in Northeastern Pennsylvania. The company is a vital component of national efforts to advance America's technological excellence and local efforts to spark the economic revitalization of Northeastern Pennsylvania. Schott Glass Technologies is currently engaged in a project that will have important local and national repercussions. Schott is creating in Duryea the most advanced production center in North America for high- technology flat panel glass that is used in various electronic devices, from laptop computers to military aircraft. This vitally-important technology is important for our national security and is expected to create up to 100 new jobs in Duryea, many of which will be the high- skilled, high-wage jobs that are essential to boosting our area's economy. The flat panel display industry is expected to double within six years to nearly $24 billion, but most of this glass is currently produced in Japan or other Asian countries. Schott Glass Technologies has joined forces with Candescent Technologies Corporation to develop an innovative flat panel display technology that is higher-quality and less expensive than the technology currently in use. Schott plans to build a processing plant in Duryea that will produce super-thin glass using ``down draw'' technology, which allows for thinner glass to be created that requires less polishing. This facility will be the first of its kind in the United States. The super-thin glass will be used in displays for hand-held electronics for the United States Department of Defense ground forces and in avionics displays for military jets. Other uses include displays for laptop computers, work stations, and commercial jet avionics. By contributing to the economy of Northeastern Pennsylvania and advancing our nation's store of technology, Schott Glass Technologies continues to provide an example of the conscientious entrepreneurship that will support our nation compete in the global economy of the 21st Century. Under the leadership of President Bruce Jennings, Schott Glass Technologies can be expected to continue to grow and develop to meet the challenges of constant technological innovation. Mr. Speaker, I am glad to have had this opportunity to share with my colleagues the accomplishments of Schott Glass Technologies. I salute the men and women of Schott Glass Technologies for their hard work and devotion.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to bring to the attention of my colleagues, two distinguished community leaders, Tom and Suzette van Arsdale. My good friends Tom and Suzette will be honored this month by the Luzerne Foundation for their community service and leadership. I am pleased and proud to have been asked to participate in this tribute. Born in New York City in 1937, Tom van Arsdale grew up in New England. Tom joined the U.S. Army after high school and served in the Signal Corps as a top secret cryptographer for two years before receiving an honorable discharge. Tom began his business career as a teller in a New Jersey bank in 1959. Within two years, Tom was a bank officer and within four years, he was a senior executive. While pursuing his career, Tom was also earning degrees from Routon Valley Community College and Edison State College. Tom's business acumen gained the attention in the banking world when he assumed the position of President of a troubled New Jersey bank, guided it out of its financial crisis, converted it to a public bank and subsequently sold it to the Dime Bank of New York. Tom continued to serve as the bank's President and CEO and was named to a directorship of the Dime Bank of New York. Tom moved to northeastern Pennsylvania in 1990 after being named President and CEO of Franklin First Financial Corporation and Franklin First Savings Bank. After Franklin First was sold to Onbancorp in 1993, Tom continued to serve as its President and was elected to the parent bank's board until his recent retirement. Suzette van Arsdale also spent her early years in banking. Born in New Jersey, Suzette rose in the ranks rapidly shortly after beginning her banking career, becoming a corporate officer of one of the Nation's largest commercial banks. While working full time, Suzette earned a degree in management from Kean University. Tom and Suzette were married in 1986 and now have two children: Thomas Robert, age 12, and Matthew Ernest, age 20 months. Mr. Speaker, both van Arsdales have been active members of the community. Tom serves on several local boards, including the Luzerne County Community College Foundation, the Committee for Economic Growth, the Wyoming Valley United Way, Wyoming Seminary, College Misericordia, the Central Division of Pennsylvania Economy League, WVIA public radio and television, and the Northeast Philharmonic Orchestra, to name just a few. He is a member of the Pennsylvania Bankers Association and America's Community Bankers and a former chair of the Community Bankers Council of the Federal Reserve Bank of Philadelphia. Suzette has an equally impressive resume of community activity and involvement, currently serving or having served as President of the Junior League, member of the Presidents Council of King's College, second chair the Wyoming Valley Red Cross, member of the Wyoming Seminary Board of Directors, and as an active member of United Way of Wyoming Valley, Leadership Wilkes-Barre, Family Services Association and the Luzerne Foundation. Suzette has helped raise funds for the Osterhout Library, the Back Mountain Library, the Northeast Philharmonic, the American Cancer Society, the St. Vincent's South Kitchen, the Catherine McCauley House, the Meals on Wheels program, the Fine Arts Fiesta, and the Theater on the Green at College Misericordia. In 1998, both Tom and Suzette were honored by Her Majesty, the Queen of England. Tom was invested to the Order of St. John as an Associate Commander while Suzette was given a similar honor by the Queen and also invested to the Cathedral of the Church of St. John by Lord Prior. Mr. Speaker, I am extremely proud to call Tom and Suzette van Arsdale my friends. In just 10 years, they have both had an enormous impact on northeastern Pennsylvania. I have called on them numerous times to help support community efforts and they have always provided their leadership. More importantly, they have been wonderful friends to me, my wife, Nancy, and to many people throughout the area. I am proud to join with the community in thanking them for their years of service and wishing them the best for the future.

Mr. KANJORSKI

Mr. KANJORSKI. Absolutely. There is no question about that.

Mr. KANJORSKI. I think it helps us all.

Mr. KANJORSKI. Look, we started out this discussion knowing. I do not know of a Member of Congress who likes to vote to increase taxes. They will always vote to cut them. It is not hard to get numbers to cut. I do not think any American likes to pay taxes unless they think it is absolutely necessary or could be used for a good purpose. I think the gentleman is hearing out there from his constituents, the same thing that I am hearing. We do not want wasteful spending, and I agree with that. But we want measured, intelligent spending, and we want to pay down the debt.

Mr. KANJORSKI. I think our risk is I do not know how low the unemployment rate could go, but it is as low now it has ever been in my lifetime. I always used to think 5 percent was full employment. As a matter of fact, I think Humphrey Hawkins said 6 percent is full employment, matter of Federal statute. Well, 1.8 percent under that. I always felt that I never expected us to have what I think is a Clinton recovery of 1993 built on the Bush sensible tax increase of 1991.

Mr. KANJORSKI. As we know, no two Members in this House will ever agree 100 percent with what is in a spending bill or what is in a tax bill. This is the House that comes to order with compromise, and we have to accept things we do not disagree with.

Mr. KANJORSKI. Sure, we know there are those little segments in the bill. But our problem is look at what we reduce, the corporate tax rate, the individual tax rate at the highest level to 1 percent. Let us look at what we did to the special interest groups. But we do not want to argue this bill. Look, we are never, as we know.

Mr. KANJORSKI. Absolutely. If we can afford to do that properly, there is no question, and I think that type, I think that is where it is going, to the right place.

Mr. KANJORSKI. Absolutely, if they are proper. But they are not proper if we have favorite special interest groups that come down here.

Mr. KANJORSKI. In order to attract new businesses in there they need a trained work force and an up-scale work force, and we have got to have the capacity to do that. What I came away realizing is, one, all people are not benefiting from this prosperity; two, there are distressed areas in this country that need help; and, three, where we agree: We can use, sometimes, tax policy to encourage where money goes, and I would much rather see capital investment in the private market made in these distressed markets where the government has anything to do with the decision-making and is not part of it. Let us utilize the great magic of the free market. It is a tremendous tool.