14396 CONGRESSIONAL RECORD - SENATE June 28, 1965 heart disease, cancer, and stroke, and get the benefit of its medical discoveries other major diseases. paid for with public moneys or whether Mr. YARBOROUGH. Mr. Presi- lirivate manufacturers should get the dent- benefit. We are dealing with the ques- The PRESI]DING OF"CER. Who tion of whether this relief from human yields time? suffering and anguish will be granted Mr. MANS Mr. President, Isoon after discoveries are made or assume that the Senator from Texas whether that relief will be delayed for would be in charge of the time until the years while private monopolists secure Senator from Louisiana [Mr. LONG) ar- all their patent rights. rived. Since I have been in the Senate, two Mr. YARBOROUGH. I yield myself who were near and dear to me have died 10 minutes. of cancer after prolonged @esses. If The ' PRESI]DING OFFICER. The any Senator has had anyone the of can- Senator from Texas is recognized for 10 cer within recent years and observed minutes. that person after they have reached the Mr. YARBOROUGH. Mr. President, stage when the pain is so intense that the Senate has under consideration this neither morphine nor any other pain morning a piece of major legislation, S. killer can relieve it, and nothing but 596, a bill to combat heart disease, can- death can relieve the pain, he would cer, and stroke-major diseases. These think a long t4me before he would vote are the major killers of our population. to withdraw the product from the peo- is designed to avert death ple until some private monopoly, which The measure s. They lias used the money of the people to do and disability from these disease being major diseases, we should have one research, had developed the patent, major means to combat them. and zeroed in all the patent rights, to The incidence of these diseases was de- reap an additional profit, on top of thal. veloped in the hearings on this measure granted with the Goven=ent research before the Subcommittee on Public moneys. Health of the Committee on Labor and No plainer Issue has been before the Public Welfare of which I am a member. Senate for some years. Each Senator The statistics show that the three dis- must stop and consider whether he will eases together cause more than half of vote to give the benefit of Government- 'd all the deaths in the United States in Ipal -for medical discoveries to the pub- year. lie now or make the public wait for 3 to In 1963, 707,830 persons died of, and 5 years, so that the private monopoly may from 25 to 30 million more suffered from, get exclusive patents lined up on these heart disease. The direct medical cost Goveniment-financed discovery. If a of heart disease in 1962 alone was $2.6 Senator stops and considers the question, billion. 'Me loss of income from heart he will think for a long time before he disease that year amounted to $19.8 bfl- votes against the amendment offered by lion, for a total cost for this one disease the junior Senator from @uisiana. Mr. President, we have had numerous in 1962, of $22.4 billion. instances in history in which the public Also in 1963, 278,562 persons died of use of medicines has been delayed, after cajacer. Another 830,000 were under treatment. It is estimated that 48 mil- discovery, until some private Interest lion people now living will have cancer. could get its patents lined up. The total annual cost of cancer is $8 1 shall read from page 21 of a book by billion. Richard Harris, entitled "The Real In the same year, 1963, 201.166 per- Voice." The book Is an account Of Seim. sons died of strokes. At least 2 million tor Estes Kefauver's investigation into more now alive had strokes, and many the drug industry and the battle which of them are paralyzed. The economic ensued. cost of strokes is more than $1.1 billion I read from page 21 as follows: a year. In looking into the development of the These diseases are great killers and antibiotics, the staff started at the begin- cripplers. @- They sip our economy of ntng-with Sir Alexander Flieming's discovery $31.5 billion each year. They cause Un- of penicillin, In 1929. Fleming realized that told hardship, anguish, and suffering. penicillin had a potent, if obscure, effect on certain bacteria, but It wasn't until 1941 But they give ground to organized at- that other British researchers proved that tack, and this present bill is an organized the drug was highly efficacious in treating attack upon them. We are dealing, in septic wounds. That year, the U.S. Govern- the amendment offered by the junior ment became eager to determine whether It Senator from Louisiana, with the clues- could be produced in quantity, and two tion of whether we will make the attack British researchers were brought to this now or whether we will withhold the country, under the auspices of the Office attack until some private monopoly can of @ientific Research and Development, zero in with their patents, some 3 to 5..a try to get private pharmaceutical years after a @overy is made-which houses interested in working on the project. They had almost no luck. A few is possible if we give away these patents weeks after the attack on Pearl Harbor, Dr. that have been bought and paid for by Vannevar Bush, Director of the OSRD, the Government. The private recipient personally brought a number of drug of a U.S. patent, as we have seen under into the picture. Almost a year and a halt our present system, can Protect his @at- later, in the spring of 1943, they had accom- ent against possible other users and de- plished little in the way of quantity pro- C TH SERVICE ACT- lay the product of research from prompt- duction, and on April 27 Dr. Bush wrote a *LI letter to Elihu Root, Jr., then a consultant. ly reaching the people whom it is in- to tle Army Air Forces: "Now, the pha-- The Senate resumed consideration of tended to serve. ceutical companies have cooperated in this the bill (S. 596) to amend the Public We are dealing with more than the affair after a fashion. They have not made rt,,P-qtion of whether the public should their experimental results and their develop- June 28 196.5 CONGRESSI-Olk RECORD - SENATE 14397 @ent of manufacturing processes generally thoroughly demonstrated that I cannot with bill, with research paid for on a cost- MWilable, however. - * - This is the problem. a clear conscience @e the responsibility plus, fixed-percentage basis, if they find MV obviously needs some very careful han- for coordinating this program any longer nothing, they have made their profit, dling." As it turned out the problem was while at the same ti3ne being handi by they are paid the money. that most @ were too busy trying to being unable to make available information corner patents on various proce@ in the which would result in the output of more If they find something, these drug production of penicillin to produce much penicillin and thereby save the lives of our manufacturers expect that we should al- of it, and the Government began pressing soldiers." low them to patent the product, pull it them to work together. It was slow going. By then, an obscure outpost of a Govern- off the market and then sell it years On January 19, 1944, Dr. Albert L. Mder, ment agency was far abeae of the drug later at an unconscionable price. the coordinator of a special penicillin pro- firms, the scientists of a Department of gram run by the War Production Board, sent Agriculture laboratory in Peoria, Ill., were There was printed in the RECORD a few a memorandum to F'red J. Stock, head of the rapidly evolving a method of large-wale pro. days ago,,and I ask unanimous consent Drugs and Cosmetics Section of the WPB, duction. Soon, the Department filed its own to have reprinted at this point in the complaining about the refusal of the drug patent applications, and they were granted, Rr6CORD an article from the Washington firms to exchange information, and added, whereupon, under its regulations, all of its Post of May 19,1965, which outlined how "The value of penicillin in saving the lives patents were made available to any producer of wounded soldiers has been so thorough- without charge. By the time the war ended, the price of one unit of medicines that ly demonstrated that I cannot with a clear the production of penicillin had reached were discovered with Goverrment conscience assume the responsibility for co- some 7 billion uni@an average shot may moneys partly in a university laboratory ordinating this program any longer while at be 600,000 units-and the drug had saved and partl:f with private research, was the same time being handicapped by being the lives of thousands of servicemen. After overcharged 40 times, until the Govern. unable to make available information which the war, more and more drug firms began ment stepped in and reclaimed for the would result in the output of more @cil- making and selling the drug in a stiffly cOm- Government its own discoveries in the lin and thereby save the lives of our soldiers." petitive race; within 8 years the price had fallen from $200 per million units to 60 cents field of prevention of mental retardation. Not even to save the lives of those men per million units. There being no objection, the article who were fighting for the survival of was ordered to be printed in the RZCORD, democracy would those private seekers Mr. YARBOROUGH. Mr. President, as follows: after patents make the discovery of it was the research branch of the I)e- rftm the Wahington (D@.C.) Post, May 19, penicillin available so that it could be partment of Agriculture which discovered ' 19651 produced. a faster method of producing penicillin, How B,, TO RETA]TDATION WAS OPENED TO 'NUS Mr. President, I ask unanimous con- and enabled the mass production of pen- MAIQY-@ST COST CUT TO ONE-rouTrcm sent that there be printed at this point icillin for the use of the Armed -Forces. (By Morton @ts) in the RzcoRD the paragraphs that I It was not the pharmaceutical companies This I& a story of why a test used to pre- have read, in addition. to the remaining which were sitting back and waiting un- vent a severe form of mental retardation discussion of this question which appears til they could zero in on the patents. costs 1.2 cents per baby Instead of 40 times on pages 22 and 23, down through the In the case of a public patent, the as much. first 2 lines of page 23, in the book by people develop the product With their It did cost 50 cents per baby for a time. Richard Harris. money. It is made available to all the Had that price prevailed, says the U.S. Chil- There bein no objection, the excerpts public and all manufacturers. The Gov- dren's Bureau, certain States would not have 9 lMre ordered to be printed in the RECORD, emment does not go into private business begun mass testing programs and many chft- follows: of manufacturing the drug product. it dren who now will be normal would have been irreversibly retarded. will give the rights to manufacture to all In looking into the development of the Exclusive rights were originally amdgned antibiotics, the staff started at the begin- those whom it feels can manufacture it to a private firm that charged $262 for a test ning@th @ Alexander Fleming's @very and get it on the market at the lowest kit that the inventor manufactured for $6. of penicillin, in 1929. Fleming re that cost to the public. This is the true free The Government has -now obtained uncon- pe@MirL had a potent, if obscure, effect on enterprise system. It stimulates - com- tested rights in the pending patent applica- certadn , but It wasn't until 1941 that petition between the different drug man- tion and any qualified organization can make other British @chers proved that the ufacturers to get the product on the the kits without paying royalties. drug was @y efdcwious in treating septic market in the most usable form, and The story was pieced together from inter- wounds. That year, the U.S. Government - ts in the speedier usage of new vie and from Government files obtained became eager to determine whether it @d ..Sid Ws be produced in quantity, and two British drug discoveries. by Senator RUSMML B. LONG, Dem6crat, of researchers were brought to this While price is a great f actor, and the Louisiana. as chairman of the Senate ft=U -try. Business Committee's Monopoly Subcommit- under the auspices of the Mm of Scientific saving of money by the patient is a tee. LONG discussed the story in the Senate ch and Development, to try to get great factor in the case of new drugs, Monday. private p t@ houses inter In time is an even greater factor. In the Since 1959, Loz;G has been working to give working on the project. They @ almost case of new cancer discoveries, many the Government property rights In Inven- no luck. A few weeks after the attack on lives might be lost by the delay in an- tions developed with the help of the $15 bil- Pearl Harbor, Dr. Vannevar BuW = @f the OSRD, personally brought a nouncing a new discovery. The obtain- lion a: year that the Goverr=ent spends with drug firmr, into the picture. Abnost a year ing of monopolistic patent rights is al- research and development contractors. 7be mental retardation test was developed largely and a half later, in the spring of 1943, they ways a cause of long delay. with Government funds. had @ed little in the way of quan- Mr. President, because the Govern- , tity production, and on April 27 Dr. Bush ment kept the patent rights on penicillin, STORY'S LEADING FIGURE wrote a letter to Elihu Root, Jr., then a con- it was made available to the public at a The leading figure in the story is the In- sultant to the A-my Air Forces: "Now, the ventor of the test, Dr. Robert Gu@e, of ted in vastly lower cost per million units of Buffalo, a brilliant scientist and himself the pharmaceutical companies have penefllin. The price of penicillin fell parent of a retarded child. this affair after a fashion. They have not made their experimental results and their from $200 for 600,000 units of penc@ "I had always assumed," he said, "that the development of manufacturing processes to 60 cents per 600,000 units in 8 years, Drice would be reasonable." But he termed generally av however. This is under the competitive private enterprise himself naive about such matters. the problem. It obviously needs some very system. The Government made the The simple, reliable test he developed de. careful handling." As it turned Out, the benefits of the penicillin discoveries at a tects the metabolic disorder phenylketonuria, problem was that most @ were too busy small agricultural research station at usually called PKU. trying to corner patents on waous processes Peoria, M., available to all penicillin A few drops of blood axe taken from the in the production of penicillin to produce much of it, and the Government began press- manufacturers and that caused the great heel of an infant in the first few days after ing them to Work together. It was slow iZo- saving in price. birth. U the @der is found, a special diet ing, On January 19, 1944, Dr. Albert L. If the Goveimment retains the benefit will prevent retardation. Elder, the coordinator of a special penicillin of its research, it gives that knowledge The incidence of PKU had been believed to be 1 in 20,000 to 40,000 births, but a m@ am run by the War Production @d, free to all drug manufacturers, and screening of 400,000 infants in 1962-M estab- memorandum to Pred J. Stock, head strengthens the private enterprise sys- lished a rate of at least I in 10,000. Tbxt Wth: Drugs and Cosmetics Section of the tem, as well as getting the drugs on the indicates a nationwide potential of about 400 WPB, omplaining about the refusal of the drug ftm to exchange information, d market without undue delay. PKU-retarded infants a year, including added, "The value of penicillin in saving the If we were to give the companies $650 roughly 3 in the Di@ic', 7 ii, Maryland, and 14398 CONGRESSIONAL RECORD -SENATE June 28, 1965 MA.NDATORY IN MARYLANI) tion problems. So Dr. Guthrie, who was Mr. YARBOROUGH. The Senator Is The test is now being performed regularly not, as Kuhns put it, "in any remote sense correct. It was a part of the U.S. Gov- 10. 90 to 100 percent of the hospitals with a businessman," became a production man. ermnent which stopped the profiteering. maternity services in 14 States and in a total With bureau funds, he rented a house, The private companies were claiming the of 2,600 tLosp@ls In all States except Alaska. and in It, in a year's time, turned out 10,000 Some Staw-s. including @land, have made kits, enough for a million tests. Packaging discoveries as private patents and they the test mancta@.y for hnspital births. was done by retarded young adults. had the assistance of a university. They In Massachusetts, the test has detected 33 Ames, the Miles subsidiary, "took what were charging $262 for a unit of medi- PKU cases. Dr. Guthrie said this was done we had done and repackaged It," Dr. Guthrie cine with which to test babies to prevent with mass screening that cost State taxpayers said. "The big price then particularly made severe mental retardation, when $6 was about as much as lifetime custodial care for no sense." the final cost per unit established. The one person in a public institution. The 'big price" as $262 for a 500-test kit private drug company was more inter- Dr. Guthrie, a 48-year-old microbiologist that the scientist produced for $6. He had ested in a 40-fold profit than in whether and physician, attributed his special interest not known what the price would be until June 1963, when he visited Miles. "I was mental retardation was to be prevented. In developing the test to the PKU retarda- tion of a relative in Minneapolis. A member horrified," he said. When we got that test back in the of the pediatrics department of the School He pointed out that since the Government public domain to be used for the public, of Medicine of the State University of New made his Invention freely available, com- who had paid for the discovery, the cost York, Dr. Guthrie in 1958 received his first mercial laboratories-including Miles-haVe was reduced to $6 per unit, or 1.2 cents gmn@25,000 each, for 5 years-from the offered the kit for a fraction of its original per baby. The question at Issue is National Association for Retarded Children price. and the Association for Aid for Crippled The Miles official, Orr, suggested that ne whether we should allow a private mo- Children. lAter, he received a totaa of reason for the $262 price was the need to use iiopoly to charge $262 for a test kit to $75,672 from three other nongovernment only the highest quality sterile materials. be used with babies, or allow the people sources. However, he acknowledged that he did not to charge whatever they want to charge But Starting in 1959, the Public Health intend to Imply that his firm's test kit was with their own discoveries. Service gave $251,700. Chiefly for the sub- superior In that regard to Dr. Guthrie's. tHe sequent mass screening, the U.S. Ch.Udren,s did, however, fault the scientist's deftni Any person or company can charge Bureau granted $492,000, of costs. wnatever they like if they discover some- FMN is NOMINAT= @CATION BEGINS thing with their own money. But the In the Department of Health, Education, Long amendment question does not dea4 Long before the Bureau got into the pic- with private moneys. This Tong amend- ture, but after the test was perfected, Dr. and Welfare, a drive began to nullify the Guthrie and the NAP.C agreed that a swift agreement with Miles. One who urged this Merit deals with public funds, with public way to bring the test Into the widest possible was I-Ierschel P. Cleaner, Inventions coorcu- moneys taken from the pockets of all use would be to enlist a pharniweuticai firm nator for the PHS. the taxpayers In the United States. with a worldwide organization. On November 5, 1963, the chief of the I ask every Senator to search his con- The Ames Go., a subsidiary of Miles Labo- ChiIdren's Bureau, Katherine B. Oettinger, science and see whether he can vote to ratc>ries of Elkhart, Ind., was nominated by wrote Cleaner "that the granting of exclusive Dr. Guthrie because It had been marketing commercial rights to Miles Laboratories give away such patent rights when hu- a urine test for PKU. That test, however, would prevent Massachusetts and some of man pain is involved. This is different is not well suited for Tnims use. the larger States now contemplating setting from the NASA. This Is very different A lawyer friend of Dr. Guthrie, Raymond up this screening from carrying out their from the issue which arose in the case Kuhns of New York City, who was donat- plans.,' of NASA, when the NASA directors o in- @ne his legal services, advised that a patent "N@ne of these States could afford t wanted to give the patents away. We @@the invention be sought. He W" con- stitute a program if they had to purchase vote $6 billion a year to space explora- cerned with the possibility that the plan the kits commercially at the contemplated ($262) price, or If they had to pay royalties tion, and we hope they make great dis- for mass use of the test could be je dized on the materials they would manufacture coveries. The NASA authorities worked by another patent only with cosily, pro- theraselves," she said. to keep the authority to give away patent tracted litigation. Almost a year had gone by since Dr. A year ago, the Acting Surgeon General rights to those amply Paid to do Govern- Guthrie had published articles about the of ihe PHS, Dr. David IL Price, oMcially de- Merit research on space problems. test. This meant that unless a patent ap- ter&ined that the contract should be can- By throwing their weight in and fight- celed because "the best Interests of the pub- , pucation were filed quickly, Dr. Guthrie's mg for the giveaway the NASA authort- claim automatically would be denied. lic will not be served by an exclusive Kiibnn said that Miles Laboratories, which license. I * 0 Insofar as the Invention may ties were able to beat the opposition had accepted an invitation to participate, be patentable, the equitable ownership of down and to defeat those defending the agreed with him in emphasizing to Dr. all rights, both domestic and foreign, shall public interest. But this time we are Guthrie that any proposed patent agreement oe in the United States." dealing with human pain; we are dealing would have to be approved by the Public Mr. YARBOROUGH. Mr. President, with M people on earth, not researches Health Service. in space. When a means of relief from this product to determine whether a . BAM BOYAL@ FOa @ numan pain and illness is discovered as child was suffering from mental retarda- This Is the kind of thing-quebtionnair-, tion, was discovered with the use of , result of the expenditure of public redtape-that Dr. Guthrie scorns. HU sci- public moneys. Later, a Private company money, are we going to make It available entific work preoccupies him. Not u@til charged $262 for one unit of a test in for the average person to buy or are we almost a year after the PHS began pressing testing inf ants to see if they had an going to permit a monopoly to delay him with letters and phone calls did he get ailment that would cause mental retar- the general use for 3 or 5'years, and then around to filing the required reports. charge exorbitant prices? That is the The . patent application and licensing dation. agreement, which - meanwhile had been Since the Attorney General of the question involved. drawn up by an associate of Kuhns on a United States has reclaimed the product, Mr. LONG of Louisiana. Mr. Presi- nonprofit basis, put title in the name of the cost for a kit is now $6 for the test dent, will the Senator yield? Dr. Guthrie, but at his request barred him kit to be used. The cost of $262 for a kit Mr. YARBOROUGH. I from getting a cent In royalties. to test to discover whether newborn Mr. LONG of Louisiana. The Senator Instead, Miles, which was made the ex- clusive licensee, agreed to pay 5 Dercent of babies had an ailment that would cause is absolutely correct. We want the Pub- the net proceeds of sales to the NARC. Ulti- mental retardation all their lives was lic Health Service and the Department of mately, that association got $1,100. cut to $6 a kit, and the cost of the test Health, Fducation, and Welfare and the During the discussions, no one thought to pet baby was cut from 50 cents a baby National Institutes of Health to protect ask what price Miss Intended to charge. to 1.2 cents a baby. 'Me overcharge the public interest, just the same as these in 1962, the patent application was filed had been 40 times the real cost. fine people did in this case. and the licensing agreement signed. At Mr. HILL. Mr. President, will the I have some other examples to give, about that time, the Children's Bureau an- Senator yield? and I will give them before the debate nounced its plans to screen the 400,000 In- -- A great many test kits had to be mr. YARBOROUGH. I shall yield on is over. The National Institutes of cedi and quickly. the Senator's own time. Health is honeycombed with people who TURNS PRODIUCTIOIIT MAN Mr. TM.T.. Mr. President, the state- want to be able to patent and sell certain Miles was unable to gear up fast enough ment of the Senator should be accurate. products to private companies so the for this job because of what Vice President It was the U.S. Public Health Service monopolies can sell them for 10 to 30 - - - - . .- --- ---- +lk- --4;+-@i"a +imgm what. khpvwniilrl hp ntbprvuLqp snld. June 28, 1965 CONGRESSIONAL RECORD -SENATE 14399 Aft The PRFSMING OFTICEP-. The and, if such an arrangement will afflrma- either a business expense or can be @e of the Senator has expired. tively and substantially promote the capitalized and amortized over a period @ Mr. LONG of Louisiana, I yield the utM=tion of the development and the Of Years. Moreover, this type of treat- Senator 2 additional minutes. interests of public health or welfare ment can be extended to many types of Mr. YARBOROUGH. This has been a within the United States. expenditures which are only distantly subject for considerable discussion in mr. President, this amendment is fair related to research, as conceived. university circles and the role of uni- to the interests or private contractors. @her, most people are not aware versities in this medical research. The It protects the public interest. Why is of the great service rendered by the Fed- governing officials of our universities it being so stoutly resisted? The answer, eral Government to the big manufac- should search their consciences. Do they in four words, is: "The manufacturers turing drug companies with respect to want to protect the people's rights. or, of drugs." the new drug applications which must in return for an endowed chair, do they This is not the first time Congress has be flle& and approved by the P-o.Dd and think it is worth giving away the public had to deal with the fantastic lobbying @ Administration before any, drug interest? Is an endowrijment more to be strength which this segment of the man- can be put on the market. These ap- treasured that the protection of the peo- ufacturing industry can muster. We still Plications must be supported by exten- ple's rights? Do the humanities teach remember the gallant fight which our sive clinical testing which costs from that we surrender monopoly patents on late, beloved colleague from Tennessee. $50,000 to $100,000 and up. Under the discoveries to alleviate human pain, dis- Senator Kefauver, led to effectively mod- FDA's regulations, which are not re- coveries made with public moneys? The erate some of the excesses of this seg- quired by law, the smaller drug pro- ducers who wish to sell a drug already university community of America should ment of the manufacturing Industry. ask itself some soul-searching questions Mgures turned up by Senator Kefauver on the market must duplicate the clini- on its position concerning proper use of showed that the drug manufacturing in- cal testing which has already been ap- the proceeds of these public funds. dustry has shown the highest profit rate Proved by the FDA. According to small Mr. LONG of Louisiana. I have On investment of any industry in the drug producers, the effect of this re- checked this question over the weekend. land. The unbelievable profits of the quirement is to prevent them from com- The best Information I can get is that big drug manufacturing companies are Peting with their larger rivals on prod- not one of the associations represent- often the result of Goverrunent imposed ucts wluch are not patentable or on Ing universities has taken a position on restrictions On competition and indirect which the patent has expired. this issue. From what I understand, Government subsidies. But to the drug Of course, the most important pro- two-thirds of the universities have not manufacturing companies @ Is not tection extended to the industry by the taken a position, and of the one-third enough. They eagerly importune the Federal GOV@T is the patent. it to that have taken a position, the great ma- Federal Government to finance much Of often forgotten that the Constitution jority of them recognize that discoveries their costs of research and develop- makes the granting of patents made as a result of using public funds ment-but they demand that they be en- sive, not mandatory,. And on drugs this in the area of public health should be titled to preempt for themselves the country has seen fit to @t the Most placed in the public domain. fruits of the research financed by the extreme form of patent protection pos- Mr. President, I wish to state my citizens of our country. -sible. with the exception of Belgium, AWrong support for the broad purposes of At the present time Federal funds are it is the only developed, Industrial @ legislation. One of the great prob- used in this industry to finance research country which grants both process and lems facing the health professions Is and development in three major ways. product patents on drugs, does not pro- knowl- Although it Is virtually impossible to vide for compulsory licensing, and im- ,bow best to make use of all the poses no price controls. other coun- edge which is being discovered every year estimate the value of these Federal con- through research. How do we get the tributions,,it probably nms to hundreds tries, including mm which have been message out to the doctors in small of thousands of dollars a year. In the noted for their development of new pb&r- maceuticaj prod for example, @- towns and in rural areas? Through this first place, research conducted by gov- @, p=,ee, and Swtzu ve bill we will construct regional medical ernmental agencies, such as the National complexes consisting of medical schools Institute of Health, occasionally yield sought to provide -some protection to the consumer. This attitude stems from and hospitals in association with re- newdrugPrOducts. Inl961,forexample, the strong moral c search centers and treatment stations NIH reported the'developmentof a new onvicuon that no one working on heart disease, cancer and and potent synthetic painkilling drug, should have the right to withhold from These dread diseases available under the trade name Prinadol. the sick and ailing a product which @ stroke. are our the difference between sickness and big killers, and R is vital to the Improved This new analygesic has a more power- health of our citizenry that we make use ful pa action than morphine; health, life and death. But while grant- of the new knowledge which is constant- yet it Is free from many of the un- mg to the drug manufacturing. industry desirable side effects caused by morphine. vast sums of money and a @d of pro- ly being discovered. tections, the U.S. Government has ex- This being the purpose of the legisla- Products such as this, In turn, are made tended no comparable protection to the tion, It is important that the informa- ava"ble for comniercial exploitation' American public. The drug manufac- tion discovered through funds author- usually on an exclusive basis, to a major turin-9 industry Is being allowed to make @ by the bill be made freely and fully drug company' This is necessary when tremendous Profits at the expense of the available. The amendment offered by new uses are found for old drugs on taxpayers. Lhich tbh: patent has expired, when sales Spokesmen for our drug industry, the distinguished Senator from Louisi- to ana [Mr. LONG] Provides just this. It made to the Goverrument, !Dr would have you believe that they are the says very simply that- evidence of safety and utility must De only People who have ever discovered No part of any appropriated funds may be provided. any drugs. The facts are otherwise. expended pursuant to authorimtion given Y, Federal funds support similar Countries like Germany, France, and by this act for any scientific or technologi- testing carried on by private hospitals as Switzerland, which grant patents only' cal research of developmental activity un- Well as by State, county, and municipal on processes and not on drug products, less such expenditure is cmditioned upon hospitals. This money, which is in the have been in the forefront in drug dis- provisions effective to @ that all devel- form of grants from NIH, helps to defray' coveries. Even in the past 20 years, opments resulting from that activity will be for individual drug companies the ex- many of the important discoveries have made freely available to the general public. Pense of clinical testing carried on in emanated from abroad. Oral antidia- In the difficult area where both pub- such hospitals. betic drugs, for example, are the German lic and private funds have been spent In addition to forthright financial aid, development, although some Americans on the research leading to a discovery, the Federal Government has provided later developed molecular modificauons ted exclu- a number of important protections and of the original German compounds. no longer benefits to the U.S. drug manufacturing Tolbutamide, sold by Upjohn under company is industry. The Federal Government the trade name Orinase, was devel- n exclusive gives exceptionally favorable tax treat- oped by Hoechst Co., of Germany, and ri upon equitable considerations re- ment for expenditures on research and is the largest selling or-,i antidiabetic --- I- -- A-.- I- 'us- 14400 CONGRESSIONAL RECORD - SENATE June 28, 11,165 used in our mental hospitals are a Mr. YARBOROUGH. We heard the Mr. President, I ask unanimous con- *rsench development. Thorazine and statement made last Friday that the floor sent to have printed in the RECORD the compazine, the biggest selling potent of the Senate is no place to legislate. If wording of the Long amendment. tranquilizers to mental institutions in the floor of the U.S. Senate is no place to There being no objection, the amend- this country, are exclusively licensed to legislate, why in God's name do we have ment was ordered to be printed in the Smith, @e & French by the French it? The criticism we hear around the RECORD, as follows: company which originated the com- cotmtrY is that decisions axe made in On page 12, line 4, immediately after pound. An additional example is the smoke-filled rooms or in the little groups "SEC. 906.", insert the subsection designation development of drugs designed to alle- of subcommittees, and that the Senate viate motion sickness. Searle, a U.S. has lost its savor, and fails to legislate. On page 12, between lines 11 and 12, insert company, developed Dr ne and has Let us legislate on the floor of the Sell- the following: lb) (1) No part of any appropriated funds a patent monopoly. On the other hand, ate, let us take this bin out into the light may be expended pursuant to authorization the competing product sold only by of day, and let the American people see given by this title for any scientific or tech- Pfizer is a Belgian development. The how we legislate. It is time we legislated nological research or developmental activity Belgian firm granted an exclusive license on the floor of the Senate if the fruits unless such expenditure is conditioned upon to Pfizer for sales in the United States. -- of $650 million of the people's research provisions effective to insure that all devel- In his fascinating, best-selling book on money is going to be given away to pri- opments resulting from that Activity will be the Kefguver drug investigation, "The vate monopolies which are already paid made freely available to the general public. The Surgeon General shall include in each Real Voice," Richard Harris notes that in full, with profit, for the research done. grant or contract made or entered into under at one of the hearings, a noted professor The PRESIDING OFFICER. @e ... h authorization for any such activity pro- of pharmacology testified that "far from time of the Senator has expired. visions under which the United States will leading in drug progress, it appears that Mr. LONG of Louisiana. Mr. Presi- acquire exclusive right in and to any such our industry has usually followed and dent, I yield such time as is necessary development. Nothing contained In this often after a clear lag." Harris goes on for me to propound a question and for paragraph s@ be construed to deprive the to note that the doctor did "give the the Senator to reply. owner of any background patent relating to any Such activity, without his consent, of United States credit for the discovery of The Senator from Texas has discussed any right which that owner may have under cortisone and other cortical steroids, some of the drugs developed in Europe. that patent. and for anticoagulants, hydrazides, an- The Senator is aware, is he not, that "(2) The Surgeon General may enter into terior pituitary hormones, antithYrOids, when some of the products are made an agreement with any charitable public and oral diuretics, but he went on to available to American drug Companies health organization for the equitable disposi- say that most of the progress-in drug through a license, the American com- tion (for such period not exceeding three research-has come fro@European and pany receives much greater protection years as the Surgeon General may prescribe) of proprietary, interests in any development British researchers, both industrial and than the European company, enabling which has been made through research or independent.' Foreign researchers, he the American company to charge a high- developmental activity for which such or- added, had discovered the antillists- er price than is permitted in the Euro- @tion bLas made substantial financial mines, synthetic morphine substitutes, pean countries? contribution If the Surgeon General deter- -now antimalarials, synthetic estrogen, Mr. YARBOROUGH. Exactly. mines with the concurrence of the Attorney @ost all of the tranq@rs, Oral anti- . General. after according to all interested qwabetic,s, and penicillin, the ancestor of The purpose of the Long amendment, arties an opportunity for public hearing is to permit the results of the research upon such proposed agreement, that such an the other antibiotics. The purpose made with the PeoPle's Money to be made agreement will affirmsttively advance the in- of much of the work done by American available to the people. By adoption of terests of public health. Each such agree- drug ftm, Dr. Meyers asserted, was the Long -amendment the discoveries whl ment shall be subject to the provisions of .partly to exploit and market' these for- @ made available to the people much Paragraph (4) of this subsection. eign products but 'Mostly to modify the -r than If they are given to private "(:Q Any grantee or contractor who has i;sie made any development in the perforraance original drug just enough to geT, a monopolies. of any obligation incurred under any grant patentable derivative'." "I regret that there is no single repre- or contract made or entered into subject to The American Public is paying for sentative of the other side of the aisle the provisions of this subsection may apply this vast research effort. And the Amer- on the floor today. Maybe they do not to the Surgeon General for the transfer to ican people should not be deprived of the want to listen, and then vote against him of exclusive right (except agalust the resulting benefits. New drugs discovered the Long amendment. There was a time United States or any Federal, State, or local with the aid of public money have been when Republicans like Borah, Norris, governmental entity) to exploit such devel- withheld from the public entirely, or were McNary,,and La Follette stood up alone opment for commercial purpose& for such offered only at outrageous Prices. I am period (not exceeding three years) as the fighting to protect the public Interest Surgeon General may prescribe. Before any not contending that the various forms Of when the minority which then was on uch transfer is made, the Surgeon General Federal aid be curtailed. I am for this our side of the able was not fighting to ssh&U comply with the requirements herein- Federal rewwch. I am, however, insist- protect the public interest. I hope, after set forth in this paragraph. The ing that those who Pay for the research whichever way the' vote goes, that the Surgeon General shall cause to be published should be its beneficiaries. It is most majority of Senators on this side of the in the Federal Register notice of the making unbecoming for the Government of the aisle will not vote to give away the public of such application and a full and complete United States to accede as a matter of interest. I hope the great majority of statement oon@g the circumstances policy to any private interest, group, or - _ under which that development was marle the Democrats will cast their votes fox and the justification asserted by the appli- indimtry. The very belligerence of the ,the Long amendment. emt for such transfer. At such time (not drug manufacturing mdlustry that it will It is not a restrictive amendment on earlier than 30 days after such publication) conduct research ced by the Federal is the research, and will not delay research. as the n General shall prescribe in Government only on its own terms This amendment has been watered @ notice, opportunity for a hearing on strongest possible argument that can be - the record upon such application shall be advanced in support of Senator LONG'S down to meet the approval of the de ed under such regulations as the Sur- amendment. partment concerned ' It was amended geon General shall prescribe to each person The IDING OMCER. The after long discussion, to meet the ap- who would be affected thereby, including time of the Senator has expired. provaj of the Department of Health, Ed- any State or local government and any rep- Mr. LONG opf . I yield 1 ad- ucation, and Welfare, and did meet its resentative of an organization or @ent of (litional minute to the Senator from approval. the public legitimately concerned therewith- What secret forces are applied to them F@ the basis of evidence received in @ Texas. nearmg, or if no such hearing has @ re- Mr. YARBOROUGH. I ask unani- to make the American Cancer Society quested upon the basis of such evidence as consent to have 3 additional min- and the American Heart Institute change the Surgeon General shall obtain by @ *=.S their position, because they have been and complete Investigation and Preserve PA iL Mr. LONG of ana. I yield 3 ad- doing exactly that when they agreed to public record for not less than live Years, ditiorma minutes to the Senator from the changed Long amendment. They the surgeon General may er the P- Texas. I have now reversed themselves. Why? prieUu interest for wnich application was Jitne 28, 19@5 CONGRESSIONAL RECORD -SENATE 14401 e or any lesser proprietary interest to information, copyrightable material, use, AMMCAN HRART ASSOCIATror;, Imc *@Wapplicant if the Surgeon General deter- process, invention, patent, improvement or New York, N.Y., April 29,'1965. mines, with the conm=ence of the Attorney Innovation resulting from scientific or tech- 3&. BENJAMIN GAMN, General, that the -g-king of such transfer- nological research or developmental activity; Se@ Coin7nittee on Small Business, "(A) is clearly justified upon equitable and Senate Office Building, considerations by the contribution made or ..(B) theterm'c@tablepublichealthor- Washington, D.C. to be made by the applicant to such develop- g@ation' means any organization described DEAN Mit. GORDON: We are most grateful ment apart from the financial contribution in section 501 (e) (3) of the Internal Revenue and appreciative of your good offlm in as- made or to be made thereto by the United Code of 1954 which (I) is exempt from taxa- sisting in the preparation of an amendment States', tion under section 501 (a) of such Code, (II) to Senator LoNals amendment to Senate "(B) will affimatively and substantially derives its income wholly or chiefly from bills Nos. 512, 5w, and 597. promote the utilization of such development charitable contributions made by the public The attached has been revimW by our and the interests of public health or welfare at large, and (III) expends Its revenue chiefly president, Dr. aarleton B. Chs and Dr. within the United States; and for the promotion of public health or the James V. Warren, the c of our l@ "(C) will not result in or contribute to alleviation of human suffering arising from lative advisory ttee and We feel that any material restraint of the interstate or floods, earthquakes, fires, explosions, and in our combined judgments this represents foreign commerce of the United States. similar disasters affecting residents of the a very satisfactory solution to our problem. "(4) Each transfer under paragraph (2) affected areas.,' We hope Senator LONG will consent and be or paragraph (3) shall be made subject to- wining to oorwider this as an amendment to "(A) the termination thereof at any time Mr. YARBOROUGH. Mr. EteSident, his present amendments to the Senate BiM. at which the Surgeon General determines I ask unanimous consent to have printed Again may we express our tha"kii to you that the recipient thereof has failed without in the RECORD, because time will not and through you to Senator Loxa for oon- adequate justification to (I) take prompt permit my reading them, letters received SiOeration in this matter. and effective action to bring the develop- just a few days before hearings were Sincerely yours, ment to the point of practical application, held in the Public Health Subcommittee, Rows A. Bm", Or (II) make the development avemable, of which I am a member, from both the Executive Director. upon terms and conditions determined Py American Cancer Society and the Amer- NEW YoRz, N.Y. the Surgeon General to be reasonable, ,' ican Heart Institute, approving the June 3, 1965. use or exploitation by other parties within the United States for public benent; and I4ng amendment, and then, a day or Senator LasT= ITTY.T., " (B) such other terms and conditions as two before we voted, telegrams received Chairman, Labor and Public Welfare Cr@ the surgeon General shall determine, and from them reversing their stand. mittee, U.S.. Senate, Washington, D.C.: specifv In @ng such transfer, to !Pe re- There being no objection, the letters The American Cancer Society noting the quired for the protection of the interests of current sentiment of the Senate and telegrams were oxdered to be the policy on @nts out of Fed- the United States. nsmit printed in the RzcoRD, as follows: erally sponsored research would like to re- 11(5) The Surgeon General shall tra AMERICAN CANCM @, INC., quest favorable oonaddemtion ot S. 512 with- to the Congress annually a full and complete New York, N.Y, April 30,'1965. out inclusion of any amendments on @nts statement BENJAMIN GORDON, Esq., which were added to the ort@ draft of the "(A) the Identity of the recipient of each Select Committee an Small Business, bill as It was Introduced on January 15.@ IM. transfer made during the preceding calendar U.S. Senate, Senate Office Building, HARoLiD S. T'Inm, M.D.. ar with respect to any proprietary interest Washington, D.C. Senior Vice President for Research any development subject to the provisions this subsection, DEAR M.R. GORDON-. The American Cancer and Medical- Affairs. 46 "(B) the terms and conditions under Society and I wish to express our apprecia- tion for the courtesy and attention to our NEW YORK, N.Y., which each such transfer was made; problems in the area of the multiple sup- June 4, 1965. "(C) the fwU and eir@tanoes relied port of research that you and the legisla- Senator LisTER EmL, upon in justification for the making of each tive staff for Senator LONG have extended. Senate Office Building, such transfer, and We are particularly grateful that the pro- Washington, D.C.: " (D) the use which has been made of all posed amendment No. 14 to Senator LooNwa American HearC efaon concurs in developments with to which such amendment to bnl S. 512 recognizes the dif- Senate action defeating Long ame t transfers have been made under this su@- ferenr status of charitable public health Or- on patent rights June 2. The tion tion at any time before the date of such re- tions and preserves their Proprietary Is hopeful that this important matter may port@ interest In the results of research develop- now be resolved within the Ju Oom- 11(6) Whenever any development resulting ments under which they made i3u - mittee on an equitable basis since the have from any @h or developmental activity stantial cial contributions. ciation has major Interest in the solution oc conducted In whole or In part with app@ In accordance with our discussions, it Is this Problem- priated funds expended under authorization understood that, in presenting this amend- Romm A. Bzm, of this title or any proprietary interest in any ment, statements will be made for purposes Executive Director, such developnien@is inthheld or disposed of of legislative history Indicating the Intent American Heart As@tim by any person, o tion, or agency in that this exception will be made automat- Mr. YARBOROUGH. Mr. ]President, contravention of any provision of this sub- ically operational and effective by providing had the objections of the Senator from section or any condition imposed pursuant to that the determination of the Secretary of this subsection, the Attorney General shall Health, Education. and Welfare win be Rhode Island [Mr. PASTOITZ] been valid, institute, upon his own motion or upon re- prompt and that the Attorney General's ap- that we should not legislate orl quest -de by -Y person having knowledge Proval Will also be promptly furnished. Also, on the floor of the Senate, in the sense of of pertinent facts, an action for the enforce- unless objections or unusual problems are taking up for the first time on the floor ment of such provision or such condition in raised, hearings will normally not be held or of the Senate Some amendments or the district court of the United States for required. measures not considered in the subeom- any judicial district In which any defendant It was also discussed, and we believe suf- nlittee, it would not RPPIY to the @ng resides, Is found, or has a place of business. llciently Important, that the legislative his- amendment, because the rong amend- Such court shall have jurisdiction to hear tory of Senator LoNGs proposed original ment was considered by the subcommit- and determine such action, and to enter amendment make clear that the require- tee and by the full committee, and I therein such orders and decrees as it shall ments for information and other details will determine to be required to mM into effect not in any way include material which would filed individual views on it. fully such provision or such condition. be contrary to, or interfere with, the estab- Mr. President, I ask u ous con- Process of the district court for any judicial lished doctor-pgtient relationship which sent to have printed in the RECORD, from district in any action Instituted under this might underlie some of the research Senate Report No. 368 on the bill, the paragraph may be served In any other Judi- activities. individual views which I set out in that cial district of the United States by the Thank you again for the cooperation and report. United States MaMba thereof. Whenever It understanding that you have shown. We There being no objection, the indidd- appears to the court in which any such ELC- feel that these proposals will resolve a ual views were ordered to be printed in tion Is pending that other parties should be troublesome problem which otherwise would the RSCORD, as follows: t :ore "no 'on, the have had an adverse effect upon the pro- L" be gress of medical research In fields of vital INDRVIDUAL VIEWS OF MR. YARBORO'UGH t X -t e co may T u f = ny judiial d@.t f the importance to us all. While I enthusiastically support the broe4 United States. Sincerely, purpose of this legislation, I feel that the "(7) As used in this an ozi- J. wmcoz, would be greatly Improved by the Inclusion "IAI the term 'develoUMnt' Means any Chairman of the Board. of a requirement that the results of r 14402 CONGRESSIONAL RECORD - SENATE June 28Y AMich is financed by public funds authorized plore, at his own expense, and keep all his indeed of the entire Congress,. in matters@ er this act be made freely available to findings for himself. relating to the health and well-being of Wla general public. If the public pays for the The Long amendment is written in the country. I have nothing but the research they should be entitled to the results of It. No private citizen should be allowed such a way as to give a firm the exclu- most profound admiration for the work to acquire monopoly patent rights to the sive right to use a discovery for a limited of this Senator over the yeam-work that results of research which is financed with number of years, if they have contrib- has directly resulted in unprecented ad-@ public filmds. uted to that discovery. If they make the vances against the causes and accom', In the case of research which is financed discovery by themselves, they have an panying misery of disease and illness,; partly with public funds and partly with pri- unlimited right. And if they add their The position of Senator HILL on this@ vate funds, provision should be made for the moneys or their patents to the Govern- amendment should be of the greatest, granting of an exclusive right to the private to all of us. researcher for a limited i)er@ of time (for ment moneys, they share the fruits of the signiflance research. It is a fair amendment to re- The issue before us is whether there' instance, 3 years) if such a right is justified upon eqnttable considerations by the finan- searchers and manufacturers. should be a national patent policy or. cial contribution made by the private re- It has been pointed out that American whether each piece of major legislations searcher and if the action will promote the drug manufacturers can both produce should be amended to provide different@ utilization of the development and the in- and market exclusively, something drug policies for each agency or program. terests of the public health and welfare in companies caxmot do in most of the coun- The issue is not the pricing practices of@ the United States. Through such a provision, the publi tries of the Western World. This bill, the drug industry. would e In- with- terest be safeguarded at the .@ w@ich I strongly support with or We now have a presidential patent@; time that the rights of private researchers out the Long amendment, will aid in Policy that was developed over a pe@ were recognized. bringing about discoveries which. are @f 20 months or more. This policy hag, I comraend the Department of Health, badly needed by humanity, especially in worked well. We have not been in@'@ Education, and Welfare for their efforts in the the ailments which today kill more formed of any abuses under this policy post to protect the public interest. I feel, Americans than all other ailments cQm- in general, and as regards the Depart- however, that specific legislation is desirable bined. ment of Health, Educatfon, and in order to make clear the intent of 0'7Xd' @. President, I yield the floor. in the use of public moneys for research .Senator LONG has stated that to insure that the public interest be safe- ivix. LONG of Louisiana. Mr. Presi- quarrel with their use of their patent au. dent, I suggest at this time, because there guarded by law. thority. Referring to kww, Senator R@H YA@ROUC.H. are few Senators in the Chamber, that LONG stated on Friday that "I am in sup@ Mr. LONG of Louisiana. Mr. Presi- Senators who wish to speak in opposition nort of the position that it has followed." dent, will the Senator from Texas yield?- to the amendment who have used a-So what we are concerned with here . The PRESI]DING OF7ICER (Nrr. smaller amount of time than we have-I is the necessity at this time to amend YOUNG Of Ohio in the chair). Does the believe they have used no time except 5various pieces of health legislation when Senator from Texas yield to the Senator minutes for the cajling of a quorum- we are not confronted with an inimedi- from iana? speak at this time. ate need. We are asked to do this even Mr. YARBOROUGH. I yield. I believe that the side which offers the though Senator McCLELLAN's Subcom- Mr. LONG of Louisiana. Let me com- amendment, by tradition, is entitled to raittee on Patents is conducting hearings for the close debate. We have used 32 minutes on bills that would create a national pat- made out of 60. Inasmuch as we are entitled ent policy. These hearings wiU I am to close debate on the amendment, I urge I monopolistic that Senators who wish to speak against sure, produce the protections in this area time I have tire amendment proceed at this point. that Senator LONG is asking for and the in the Sen- Mr. KENNEDY of Massachusetts. Mr. protections that I support But this ate, I have observe the Senator President- will be done after a full Direct; is has been 1,000 percent consistent when- had to consider our national patent pol- ever a fight developed between the in- Mr. TTrT.T.. Mr. President, I yield 10 icy. This will not only assist Members terest.s of the public and the interests of minukes to the Senator from M hu- of the Senate to reach an Informed opin- etts [Mr. KENNzDyl. a s-All minority who would victimize ton but will also create less tions the public. The Senator from Texas has The PRESIDING OFFICER (Mr. GORE in the research field. I have been in- re- in the chair). The Senator from -formed by h m t I il never been found wanting in that mu researe en tba higl, y gard. sachusetts is recognized for 10 minutes. respect from my State that the amend- Mr. YARBOROUGH. Mr. President, Mr. YofM hu-setts. Mr. ment procedures currently being em- I thank the Senator from Louisiana for President, I claim no special knowledge ployed on patent policy could seriously his generous comments. I commend him in the area of patent policy, nor do Iaffect the cooperation between private also. The people of the United States have, Or represent, any vested intekest industry and university and medical re- are fortunate in having a man of his other than my concern for health mat- searchers. These people do not know caliber serving on committees with the ters. I do have the most Profound rG' what future policy will be, for the dedication which he has always shown spect for each of my colleagues who are amendments that are offered are often to the people of the Uruted States. actively involved in this debate. Senator changed and their effects are never fully Mr. President, this country is enjoying MCCLELLAN, as c n Of the Patents, discussed. As a result, private research- a period of high prosperity. The history Trademarks, and Copyrights Subwm- ers in industry are not anxious to ac- of the country shows that during a Pe- mittee of the Judiciary Committee is an cept any assistance from Institutions riod of high prosperity, when everyone authority in this area, and I feel his views supported by Federal funds, and this is doing well, the Government sometimes cannot be lightly dismissed on any ques- assistance would in many instances gets careless. tion concerning patents. Senator LONG speed up the development of vaccines During those periods of high prosperity is one of the most dedicated and sincere and drugs that are urgently needed. , we find the greatest giveaways of the Members of this body and I often am Mr. President, in the area of patent Public's rights by the Government, sympathy with his vews On matters ol policy and health we should be abso- merely because people have become so basic social interest. His concern with lutely sure of wlat we are doing. The prosperous they are not paying much at- the disposition of patent rights where problem of preserving initiative in re- tention to what the Goverrunent is doing. public funds are involved is to be com- ---amhwhile protecting the public inter- Today, I hope that we will pay atten- mended. I completely support his m@ est cannot be solved in a day's debate tion, and secure for the people the right tives and desires in this area, and his on the Senate floor. to obtain early use of valuable drugs that fight for the protection of the public in- We have the time to consider our Pat- be discovered with public moneys. terest will, I am convinced, yield the re- --- the @sults he seeks. I @ support hin in "ent policy. A respected member of the in major effort for sound, all-inclusive I,,g_ Judiciary COMMltte@enatOr MCCLEL- fruits of its Wation-but I cannot support ad hoc L"-IS currently holding hearings on upon pri- amendments in the complex area of this subject, and we are ed that the vate rights. Every private researcher or patent policy. And Senator LISTEP HILLe presidential policy is working - . - . I- -- i. +I,. ,"tliami+AA l@der of the Senate. weUUndertheeurrentadmintstratiooof,,, 28, 1965 CONGRESSIONAL RECORD -SENATE 14403 Department of Health, Education, the Reverend Jerome Marchetti, S.J. It As I see it, there are three reasons why we lkdwelf are. reads: should not support the amendment of If this policy is to be changed and We oppose proposed amendment whereby the distinguished Senator from Lou- put into law, we should do that through patent rights in sponsored research in medi- isiana, for whom I have a high regard. the Patent Subcommittee, and not by cal field become property of government. He is most persistent and energetic in a piecemeal approach through an REV. JEnour L. MAncHzvxi, S.J., anything that he undertakes. amendment process. 'Me fact that we Acting President, St. Louis University. MY first reason relates to the number do not act today does not mean that we The third telegram, signed by Thomas of diff ering patent policies that presently can never act. It does mean, however, H. Eliot, chancellor of Washington Uni- exist in the Goverrunent. If my memory that when we do legisl@ we will be versity, reads: serves me correctly, there are today 20 fully informed and aware of the effects On behalf of Washington University I departments of the - Government which of our actions. urge you to oppose the Long amendment to are doing research of one type or another. Mr. President, I therefore will SUI)- the health, education, and welfare bill We shall have 20 different poMies if we port the Senator from Alabama [M., scheduled to be voted upon at noon on follow the proposed procedure. Shall we HILL], the Senator in charge of the bill Monday. Departure from the long tradition proceed in such a manner, or shall we@, in opposing the Long amendment. of patent law would be a grave mis @d hav policy that Will be thoughtfully Your existing patent laws on research Mr. President, I yield the floor. development has flourished and the Nation worKea out by the Senator from Arkan- Mr. MANSFIELD. Mr. President, I has benefited. Dealing specifically with uni- sas [Mr. MCCLELLANI and his committee? suggest the absence of a quorum, and ask versities these are not profit institutions and The Senator from Arkansas [Mr.,, unanimous consent that the time for any patent royalties are spent by them for MCCLELLANI has at least three bills on.. the quorum call be charged to the @e the public benefit, for our universities must this subject before his committee at the of the Senator from Alabama [Mr. strive if they are to provide good education 13resent time. There is a bill which. he for the swiftly increasing number of young -introduced, a bill which the Senator from HILL]. Americ,,ins. The PRESIDING OMCER (Mr. THomAs H. ELioT, Louisiana introduced, and a bill which BREWSTER in the chair). Without ob- Cita?zcellor, Washington University. T introduced. There may be others. It jection, it is so ordered. The clerk will is our mutual desire to work out a careful call the roll. Mr. CARLSON. Mr. President, will and thoughtful policy that Will apply to The legislative clerk proceeded to call the Senator yield? all Government agencies. At the present the roll. Mr. SYMINGTON. I do not have the time, if this job is done piecemeal on the Mr. MANS . Mr. President, T floor, but if the Senator from Alabama floor of the Senate, we qbsL]l endanger ask unanimous consent that further pro_ agrees, I shall be happy to yield. one of the most important aspects of ceedings under the quorum call be dis- Mr. HILL. Certainly. the American way of life. In the United pensed with. Mr. CARLSON. I should like-to as- States we have gone ahead in dif- The PRESIDING OFTICER (Mr. sociate myself With the remarks made by ferent fields through Individual iW- HARRIS in the chair). Without objection, the distinguished Senator from Missouri tiative, individual imagination, individual it is so ordered. [Mr. SYMINGTON] in regard to the peno- patience, and willingness to work hard Mr. Mr. President, I yield to ing Long amendment. I have received -We know that from such work we derive e distinguished Senator from Missouri several communications from our State benefits through the discovery of patent- 'was much time as he desires. which are -thoroughly in accord with the able materials. ThePRESEDINGOPPICER. TheSen- s. tatements that have been read into the My second reason is based upon facts ator from Missouri is recognized. RECORD by the distinguished Senator brought out in the debate on the ques- Mr. S GTON. I thank the a e from Missouri. I appreciate very much tion of patent rights disposition &rising and distinguished Senator from Ala- his taking the position which he has out of NASA research and development bama for yielding. taken on tJae floor of the Senate today. contracts. I am speaking from memory Mr. President, I have followed these Mr. S GTON. I thank the able now, but I believe there have been ap- discussions with interest and care: I senior Senator from for his proximately 4,400 contracts entered into have nothing but commendation for the remarks. by that agency since adoption of its distinguished Senator from Louis inaseone who has operated outside, and recently, revised patent waiver regu- iana th [Mr. Lox(;] in respect to his position on Government, I would worry about rations. Out of these approximately 4,400 the issue. He believes that he is pro- complete Goverranent control from the contracts, NASA, under Mr. Webb, has tecting the rights of the Government, and standpoint of motive incentive in the issued only 7 waivers at the time of con- therefore of its citizens. arts as well as engineering. On the tract negotiation. When a similar amendment came be- other hand, I realize that some inter- Mr. LONG of Louisiana. Mr. Presi- fore the Senate durin the on of have been made on the I 9 dent, will the Senator yield? patents incident to space developments floor of the Senate with respect to fu- in this country, many of the business peo- ture policy in connection with this all- Mr. SALTONSTALL.. I yield. ple, those who have and do not have important subject, and commend the Mr. LONG of Louisiana. I should be relationships with NASA, felt that the able Senator from Louisiana for his glad to use some of my time in order that amendment would be an infringement interest. I might ask a question. , on their basic rights under the capitalis- Mr. President, I hope that the Senate The Senator has spoken about seven tic system. will. accept the position taken by the waivers that were granted prior to any- That includes small companies as well senior Senator from Arkansas [Mr. one knowing what might be discovered as large companies. MCCLELLANI when he says that as soon under those contracts. The Senator This morning I received three tele- as possible he will complete hearings on would find that a great number of addi- grams from three universities of my these measures now before his committee, tional waivers were granted and are State. The first comes from the Uni- and currently before the Senate. Then being granted on discoveries after they versity of Missouri, one of the institutions we can work out-and I would certainly are -made. I suspect that they are being Of learning mentioned on the floor of the hope so; I shall do my part to that end- granted on the very best things that Senate previously by the distinguished a standard overall patent policy for the NASA is discovering, with applications chairman of the committee in question. Government of the United States. for waiver being made after the discov- The telegram reads as follows: I thank the able Senator for yielding ery is made. I hope the Russell Long amendment on to me, So what the Senator from iftmchu- patents will not be added to any appropria_ Mr. imi,. Mr. President, I yield to setts is W" about is only what NASA . . istinguished @tions for research. In our view it would dam- the d Senator from Massa- is doing in ways which I believe directly ge all universities research programs. The chusetts [Mr. SALTONSTALL] 5 minutes. violate the law. That is what the De- W.ubject needs far more study. EL-MER ELLis. Mr. SALTONSTALL. Mr. President, I partment of Justice advised the agency thank the Senator. I have listened to some years ago. They did not have the The second telegram comes from the the Senator from Missouri. and I am right to waive those rights prior to know- @- - -- -1 -@ @ i- .--@ -i+lh wh@+. ha hagz onfa fna wlhaf. mioht. @ dpvpln@- Mpir 14404 CONGRESSIONAL RECORD - SENAN June 28, 1965 -ied before us that they did that is wise, unless based upon one gen- the patent. They provided the patent at- stif *7t t=they had the power to do it. eral policy. tomeys to create the presumption of I am oppose(: to waivers after a dis- For all these reasons, I hope that the ownership In the company. No other covery is made. But in my Judgment, amendment of the Senator from Lou- company, to my knowledge-and I be- waiver before discovery is a direct viola- isiana will be rejected. Then the Senate lieve this Is correct-had access to the tion of law. Their own lawyers testified can go forward to pass a bill which re- work done by the National Institutes of as much before my subcommittee. They lates to the extremely important subject Health in this discovery. It is evident said that waivers should not be made of public health. that only Merck & Co. got the informa- without the parties even knowing what I thank the Senator from Alabaxna tion and know-how on those contracts. would be discovered. for the time which he yielded. In my Judgment, a legitimate question ltlr' SALTONSTALL. I think the Sen- The PRESI]DING OFTICER. Who is whether G3verrme-@it employees were ator for his observation. I believe that yield., time? actually working f,,r the company or the issue as to who should receive patent Mr. LONG of Louisiana. Mr. Presi- working for the Government. They rights under research and development dent, how much time remains to the two were being paid by the Government. contracts should be determined, gener- sides? This patent application was paid for by ally at the time a contract is negotiated. The PRESI]DING OFFTCKR. Twenty- Merck & Co. Merck & Co. apparently @ parties should know their rights at eight minutes remain under the control has all the foreign rights to it. Yet that time. In the bill that I introduced, of the Senator from Louisiana; 20 min- Merck did not spend a nickel in connec- we tried to deal with patent rights dis- utes remain under the control of the tion with developing the product. only position in that way. The Government Senator from Alabama. af ter I began to . investigate and asked would have the responsibility for making Mr. LONG of Louisiana. We have to see the flles did the employees assign: the decision at that time. If a mistake more time remaining than they have? the patent to the Government. Up to is made, or if conditions change, the The PRESEDING OFFICER. That is that time, it had not even been reported Government would have the authority to correct. to the Surgeon General. No request for revise its commitment. Mr. LONG of Louisiana. Mr. Presi- a determination had been made. This It was not my intention to deal with dent. I yield myself 4 minutes. I shall had been done in violation of the law, so this particular subject, but I wanted to reply briefly to one or two of the points fax as I can determine. I am sorry to cite this as an example. made. say that the assigrunent came too late for My first reason, then, is that there It has been stated that I did not allege the Government to obtain its foreign should be an overall general policy gov- that the Department of Health, Educa- rights. The foreign rights were already erning patent rights ftmsition under tion, and Welfare was not using its vested in employees who had made an Government research and development Powers correctly. The burden of my agreement with the private company, be- contracts. This is preferable to a hit-or- argument has been that we should not fore the Government even had an op- @ policy adopted through the amerid- leave the stable door open with respect portunity to determine the kind of action ment procedure. to the billions of dollars spent for health that would be in the public Interest. My second argument is, @ I sought to research and let the plunderers proceed I can cite other cases. but the one I Aaring out the other day, that if there to Put'Pressure upon people in Govern- have cited is an excellent example. The to be a patent policy established under ment agencies so as to try to obtain pri- patent was not assigned to the Govern- @health bill, @ Is not the bill on which vate monopoly rights on research fl- ment, even for domestic uses, until after to do it. As I understand, from a read- nanced by the Government. I began an investigation. Even now, It ing of the committee report-and that I contend that the difference between appears that the foreign market Is being is all that ][ am f r with-it would having drugs developed so that they are exploited, because the private company be mostly ooverinnent money that immediately available to the public and has the foreign patent rights, even would be used for construction in one letting them be sold under a patent mo- though the erug was developed with Gov- form or another, with little to be used nopoly when the Goverrunent has paid erriment money in Government labora- for researcb. fo? the entire research results in a dif- tories. That is the kind of activity I am my third reason is based upon lnqilr- ference in price of about 30 to 1. There trying to prevent. ing progress in our way of life. The best is a difference between a person paying Pressures are being put upon tht Na- way to @mpb& this is by encourag- 14 cents for a pill for diabetes when the tional Institute of Health and the De- ing Individual Initiative. pill has been developed by a private com- p@ent of Health. Education, and The ING OFTICER. The pany and paying only half a cent for a Welfare by private companies, using time of the Senator from Massachusetts pill that has been developed by research every power at their connnand, to turn has expired. conducted with Goverranent money. over the Goverrunent findings to the pri- Mr. I yield an additional 2 Over a period of 10 years, the difference vate companies, companies which did not mmutes to the Senator from Massa- In cost to a diabetic might be the differ- spend a penny and had nothing to do chusetts. ence between $1,600 and $48. That is the with the research, but which seek the Mr. SALTONSTALL. I well recall an kind of money we ate dealing with. information so that they can exploit the interesting evening some years ago when Let me cite some of the things that public by charging anywhere from 30 to I, together with several others, had din- are taking place. I explained the other 1,000 times what the product should sell ner with Dr. Fleming, the discoverer of day how Dr. Guthrie did some research. for. penicillin. He told us that his discovery He is a dedicated man, not seeking to Much has been said about the messages of penicillin was incidental to work he make a killing, not even interested in from universities. I inquired about that. was performing on another subject. The patent rights. Yet his discovery, used As best I can determine, some of the re- side issue was continually coming up. by the Miles Laboratories, sold at 40 search people were completely biased. Finally he concentrated on the side issue times what it cost for manufacture, 40 Dr. Lowell T. Coggeshall of the Univer- and in that way discovered penicillin. times the cost of producing it, let us say, sity of Chicago, who was presumed to be Is it proposed to take away from a in a small laboratory in Louisiana. For- impartial, has not been. He is a director great scientist, a great doctor, a great tunately, in that development, a fight of Abbott Labcratories, one of the big medical man, the rights to a discovery was made to protect the public interest. drug concerns in this country. For that is his entirely? I do not believe any But there are some cases in which whom is he speaking? Abbott Labor@ doctors take patent rights anyway. I the public interest has not been protected tories or the university? There is a di- do not know whether Dr. Fleming ever too well. I learned only recently about rect conflict of interest. received anything from the discovery of one case. I made inquir7 about It. It Another person, Dr. 1. S. Ravdin, of Who may deals with a development by Govern- the University of Pennsylvania, appeared different is- ment employees. The work was done in before the Kefauver committee and Goverrunent National Institu@s of Health laboratories testified for the Pharmaceutical Manu- away from by Government employees. Merck & facturers Association. For whom is he him rights he may derive as Co. filed for patents for the Government speaking? For the university or for the .. - . I @ .- --, .-A -4A +I,- f... f@, fili@& @ll lffo"vi- txd 281 196'5 CONGRESSIONAL RECORD -SENATE 14405 "e iturers? I inquired of the man who, The PRESIDING OFMCER. Who committee. I did not seek the problem. I understand, is chairman of the Patent yields time? . I happen to be eh n of the Subcom- Committee of the Universities-at least, Mr. McCLELLAN. Mr. President, will mittee on Patents. The issue is involved he is responsible in that cormection-as the distinguished Senator from Alabama in hearings before that subcommittee. to what was his view on this subject. yield 5 minutes to me? The subcommittee is in the process of The man whom I have in mind is the Mr. . Mr. President, I yield 5holding hearings on the subject now. I vice president of Tulane University at minutes to the distinguished Senator propose to hear anyone on either side New Orleans. What did he say9 He from Arkansas. who has anything to contribute. When spent the weekend looking into the mat- The PRESIDING OFFICER. The that record is made, this amendment ter. He said that the American Asso- Senator from Arkansas is recognized for might be a proper issue for the Senate. ciation of TJriiversities has taken no 5 minutes. However, it. is not a proper issue at this position and not looked into the mat- Mr. McCLELLAN. Mr. President, we time unless we want to abandon the tra- ter. He said that the American Council have a parliamentary situation which ex- ditional committee procedures which are on Education has taken no position and ists here that is apt to be overlooked by followed in the processing of vital and has not determined what its position Senators. important legislation. would be. The real issue involved in the amend- The PRESIDING OFFIICER. The 'I'he PRESIDING OFFICER, The ment-arguments can be made on either time of the Senator has expired. time of the Senator has expired. side-is whether we shall now abandon Mr. HILL. Mr. President, I yield 2 Mr. LONG of Louisiana. Mr. Presi- the comniittee system, do away with it, additional minutes to the Senator from dent, I yield myself 1 additional minute. and make an assault upon the conunittee Arkansas. The PRESIDING OFTICER. The system in order to get an amendment The PRESIDING OFFIICER. The Senator from Louisiana is recognized for agreed to. No hearings have been held Senator from Arkansas is recognized for 1 additional minute. on the amendment. The amendment 2 additional minutes. Mr. LONG of Louisiana. Mr. Presi- has not been examined by committee Mr. McCLELLAN. Mr. President, the dent, he said that the Association of Land process. No opportunities for hearings Senator from Louisiana, who has offered Grant Colleges and State Universities have been offered. The amendment this amendment, said in debate on the have not examined the question nor taken deals, with a vital problem confronting floor of the Senate last week: a position on the matter, and neither this country. Those in the Dep@ent of Health, Edu- has the National Association of CollegeD to abandon a-tion, and Welfare today fonow a POUCY of i@ we want to agree and University Business Offices. tr and valuable system that has been protecting the public interest. These axe the people who presume to established and has worked over the That appears on page 14308 of the speak for the institutions and they have years9 In committee hearings, we have CONGRESSIONAL RzcoRD of June 25 1965. taken no position. However, on the the advantage of having both sides pre- In the CONGRESSIOliAL RECORD @i the contrary' there are several organizations sent their cases, and then we can let the same day, on page 14296, the following such as tTle Wisconsin Al Fund- Senate resolve the question. language appears: e Attorney Are we to resolve this question in an subject has been studied at great on an anti- exparte fashion? If we should agree to in various agencies, and as a result ams and the proposed procedure at this time, we HEW has decided to continue following the amendment would be abrogating every precedent that policy which I advocate. defeated. we have followed in the committee sys- Some universities are receiving grants tem of the U.S. Senate for so many Mr. President, If that is true, where is and royalties on some of the discoveries Years. the emergency? Where is the urgency and developments. The universities re- Every chairman of a Senate commit- to accomplish this purpose in an un- orthodox way? Where is the necessity ceive this income by signing monopoly tee has something at stake. Every com- for abrogating established Policies in rights on work done for and paid for by mittee member has something at stake. order to effectuate agreement to the Government. The amount of money Every Senator has a vital iryterest in amendment? which they receive is very small when whether we wm to such a departure compared to what the pharmaceutical from the established custom. Agreeing to this amendment would firms extract from the consuming public. I know of @ that might be cited establish a Precedent that would come This is a most inefficient way by which otherwise. They will be referred to in back to haunt the &rate. What com- to subsidize education or research. if due course. I have made no commit- mittee would feel that it had a duty im- we want to subsidize research or edu- ment. I have not resolved the case with posed upon it to go into these contro- cation, we should do what is proposed in myself. There are @ and Creum- versial issues thoroughly and present a the bill-appropriate the money io them. stances under which the Government record here that would enlighten and The PRESIDING OMCER. The time should take absolute title to a product. inform the Senate, and enable the Sen- of the Senator has expired. However, there are other eases in which ate to pass judgment on and resolve the Mr. LONG of Louisiana. Mr. Presi- it should not. I daresay there is not aissue? dent, I yield myself 1 additional minute. Senator today, including the author of if we were to agree to this amendment, The PRESIDING OFMCER. The the amendment, who can stand on the then when bills would be introduced, Senator from Louisiana is recognized for floor of the Senate now and tell us ex- they would be debated, and @ senator 1 additional minute. actly what this proposal would do. it is could offer amendments on the basis of Mr. LONG of Louisiana. Mr. Presi- complicated. Anyone who argues that his own ideas without hearings having dent, if we want to subsidize research, we the situation is not complicated does not been conducted. s7iiould do what is proposed to be done know what he is talking about. It is Surely we can -submit something for in the bill. We should grant money from highly complicated. the RECORD, as is being done here today, the Treasury of the United States. How- Mr. President,all we have to do to concerning isolated cases. Just as many ever, to talk about subsidizing education determine the answer is to hold commit- @ could be cited on the other side, if and research by permitting them to take tee hearings and hear the testimony that this were a Proper time and forum in something that belongs to the people of is Presented. We have an issue which wl-Ach to try the issue. However, it the country and to put some private firm we must resolve. I should like to see It would not be the Proper forum unless we in position to charge 40 times what they resolved in the interest of our country, want to permanently set the Precedent should charge for it, and then to permit the welfare of our Government and of here of departing from established par- 4hem e In here and say that this Our People. However, I am not ready to liamentary procedures of processing t E, COTIL education because edu at h depart from the committee system. legislation. g: .,tlon gets k 5 cents on the dollar Mr. President, it would be a great favor Mr. SALTONSTALL. Mr. President, from the money which has been plund- to me if such a procedure were adopted. will the distinguished Senator from Ala- ered from the public is a pretty expensive The Senate might be doing me a personal bama yield time to me for the purpose wav to subsidize education. favor. The problem is now before my of asking a questions 14406 CONGRESSIONAL RECORD -SENATE June 28, 1965 AftMr. Mr. President, I yield 1 The PRESIDING O@CER. How someone in a position where he can Mnijte to the distinguished Senator much time does the Senator yield him- victimize the American people?" @o@ Massachusetts. self ? I am seeking to amend the National The PRESIDING OF71CER. The Mr. LONG of Louisiana. I yield my- Public Health Act. The act comes under Senator from Massachusetts is reeog- self 4 minutes. the direct jurisdiction of the Committee nized for 1 minute. The question of committee jurisdic- on Labor and Public Welfare. That Is Mr. SALTONSTALL. Mr. President. tign has been discussed. The Senator the committee that should amend the does the Senator not agree with me that from Louisiana started looking into this act when it needs correction or when it patent law is one of the most complex matter back in 1959. He discovered finds fault with it. I submitted the fields of law, and that there are lawyers situations in 1959 that he concluded were amendment and requested permission to throughout the country who co@e horrible. I refer to the matter of private testify. Through some misunderstand- their entire practice to the knowledge concerns getting the benefit of Govern- ing, I was not permitted to testify. I am and practice of patent laws? Yet, on ment research money. The Senator sure it was not the fault of the Senator the floor of the Senate we are trying to from Louisiana went to the then Senator from Alabama. There are individual agree on an amendment to the patent from Wyoming, Mr. O'Mahoney, who views filed by the Senator from Texas laws of our country, an amendment had done much work on the antitrust supporting the amendment, which was which relates to Goverrunent Patent field, and who was then on the Judici- cleared with the Department of Health, policy. It is perhaps the most com- ary Committee. Hearings were con- Education, and Welfare. plex subject in the field of law. ducted. He told me, as a personal mat- The President's adviser in the White Mr. McCLELLAN. The Senator Is ter, "You are right, but we have aHouse said he saw nothing wrong with correct. I have no fixed conclusions great deal of power to fight and I will tle amendment. Now I understand he about It. I have a desire to learn. Ineed your help and all the help I can Is opposed to it. have a desire to make a record here and get." But no bill came from the Judici- When we try to adopt a patent policy to receive testimony from all of those ary Committee. that will apply to all the agencies, we who are interested and who have any- There was no more able or sincere find it is impossible to have one policy in thing that they can contribute that antitrust and antimonopoly man on that effect for all of them. In the Depart- committee than the then Senator from ment of Defense the bi r firms have estab- would enable the Ser-&Le to legislate Wyoming, Mr. Oldahoney, but nothing lished a policy, and'they have great wisely and In the public Interest. -ame from the Judiciary Cornmittee. power. The same is true of the National Mr. HIM. Is it not true that thev senator has already started his hear- The Senator from Louisiana asked to Space Agency. But when we provide have a special committee to investigate money for research, particularly in new lngs? the whole patent question but nothing programs, I must ask why we are going Mr. mcCLELLAN. We have heard 18 came of it. to do it. I think I have advocated flexi- witnesses. We have scheduled more wit- I have in my hands three volumes of bility. nesses for the eth of next month, which testimony, very formidable documents. is the earliest we can schedule them for. The hearings were conducted by the,The PRESIDING O"ICER. The Anybody who wants to come before the Monopoly Subcommittee of the Small tame of the Senptor has expired. committee can do so. Statements can Business Committee, of which I am Mr. LONG of Louisiana. Mr. Presi- d n record which can be chairman. -Witnesses testified before dent, how much time have we left? side the committee and ixnportant inforina- The PRESIDING OFFIICER. The qadpl: id r flee upon. The other fthe q:esti can be represented. tion was developed. I submitted this in- Senator from Louisiana has 11 minutes Those statements can be placed In the formation to the Judiciary Committee, under his control, and the Senator from record. The Senate w:ll then have an Hearings were then conducted by the Alabama has 11 minutes under his con- opportunity to sit in judgment on the subcommittee headed by the distin- trol. facts, and not on the basis of someone's Luaished Senator from Arkansas, one of Mr. YARBOROUGH. Mr. President, opinion or argument which can be made t-hea great Members of this body. Two will the Senator yield me a quarter of a without regard to ' he facts. additional volumes came from that com- miniite? Mr. The Senator has heard 18 mittee. I testified before the commit- Mr. LONG of Louisiana. I yield the witnesses? tee five t@mes. Senator 30 seconds. Mr. McCLELLAN. Yes. Mr. President, my investigation Of Mr. YARBOROUGH I a& unani- mr Are others sche this question started about 1959. I did mous consent to have a ihree-page state- be heard? what I could to get information as to ment inserted in the Rzcorm. Mr. McCLELLAN. There are 12 more what the public Interest required. There being no objection, the state- witnesses to be heard. The PRESIDING OF7ICER. The Mr. . The Senator Is in the mid- time of the Senator has expired. Tent was ordered to be printed In the dle of hearing the case and going into Mr. LONG of Louisiana. I yield my- I-.ECORD, as follows: the c@ examining the testimony. get- self 2 additional minutes. SHALL THE PUBLic GET ITS MONEY"; WORTH? ting the best available advice he can get My inte@iest in this field started in I THE ISSUE from the expert witnesses, and seeking 1959 and has continued until today, in When the Government pays billionr, of the benefit of their knowledge and ad- the year 1965. I determined to see to dollars for research, should the fruit of that vice. He is in the middle of that, and it that any time a Senator wanted to research be freely available to the public or -I should it be the private property of a com- now it is proposed to jump in and Put bring a research bill out of committee pany which worked for the Government on this provision in the bill. was going to ask the question, "Are y;u a guaranteed profit basis? Mr. mccLELLAN. we are still hear- going to give money for the use of anow DOES A PnivATz Busmws j)o xr? ing their testimony and getting their private company, or are you going to let Private rompanies doing research or hir- heJp. the public get the benefit of it?" Ing researchers always Insist that whoever Mr. Mr. President, may I ask I have placed a memorandum of the pays for the research gets the patent rights ,,Ived on Senators' d a. to It. the Chair how much time I have left? questions inv, esk . The PRESIDING OFMCER. The With regard to doing this in the m- HOW DOES THE GOVERNMENT DO Senator from Alabama has 11 minutes terest of the public, I remind Senators Until World Wax II, private patents were remalwng. that we put such a provision In the not granted on Government research. Most Mr. HILL. How much time has the Helium Gas Act, in the Saline Water Act, agencies doing research are forbidden by Senator from Louisiana? in the Solar Energy Act, In the Water law from giving away patent rights. How- The PRESIDING OFFICER. The Resources Act, In the Coal Research Act, --. the I)epartment of I)efellse spends Most 18 minutes and in the Regional Development Act of Df the money, and since World War 11, it has been granting private patent rights to oom- 1965. mercial application of its research. NASA Is enator from Every time a bill comes out of com- permitted b law to grant private patents time. mittee providing for research funds, - when the Adymlnistrator finds It "in the pub- JL Mr. LONG of Louisiana. Mr. Presi- raise the question, "What do you want lie Interest," which under pressure of con- dent. the matter of committee jurisdic- to do with the money? Use it for the tractors, is tending toward more and more ,Jne 28, 1965 CONGRESSIONAL RECORD - SENATF 14407 Aviation Agency is not bound by law, where Chalmian C@ and Subcommittee want to give the benefits to 196 million but does not waive patent rights. Chairman WrLLis both have outstanding rec- Americans, but we also wish to be sure WHAT DOES THE 1)@ENCE MEAN AS APPLIED OrdS for Opposing monopoly. You will never that those 196 million Americans receive TO DRUGS?- satisfy both sides of this issue. the benefits of further scientific re- On the average, it means that the public WHAT ABOUT INCE@? search that will advance their health pays about 30 times the cost plus fair At least 99 percent of medical research and advance our space efforts and our profit at wholesale for drugs produced under nowadays is done by dedicated men who are private patents. After a retail markup, the motivated by the salary they are paid and military efforts. If we take away in- public is paying about 60 times the cost of by their desire to benefit mankind. The centives to develop these inventions, we production. (See table at page 14296, CON- Dr. Guthrie case, discussed in debate, is an are taking away much of the initiative G@sioNAL REcoiLD, June 25, 1965.) For ex- example of how such a man Gan be horrified that will benefit these 196 million people. ample the latest oral medicine for diabetes to find that the public is being overcharged Mr. LONG of Louisiana. Mr. Presi- (repl@ing insulin) retails for about $14.40 fortyfold by a drug company in order to have dent, I yield myself such time as I may per hundred pius-about 14 cents each. This available the fruit of his research. need to comment, but less than 1 min- medicine-tolbutamide-was discovered In Most of these research doctors, chemists, ute. Europe. Upjohn-using the trade name and scientists neither understand nor care At least 99 percent of the research is "Orina,sell Is the American licensee. The about the patent system. They will not have done by dedicated men who are moti- drug sells at wholesale in Europe for about 3the patents In any event. Most of them are vated,by the salary they are paid and percent of the wholesale price here. astute enough to know that In the last analy- by their desire to benefit mankind. The WHAT ABOUT THE CASE WMME THE COM?ANY sis, it is the U.S. Government that Is paying @ MADE SOME PROPORTIONATE CONTRIBU- their salary and expenses-not the company, Dr. Guthrie case, discussed in debate, Tzolq? university, or institution through which the is an example of how such a man can Under the proposed amendments the com- money is funneled. be horrified to find that the public is pany could be given exclusive license priv- AND HOW ABOUT PRESERVING @ ENTERPPJSE? being overcharged fortyfold by a d= Beges for 3 years under closely circum- If private patents are not permitted on company in order to have available the scribed conditions. Government research then many companies fruit of his research. WHAT PERCENT OF MEDICAL @CH IS DONE will compete In price for the public's busi- Most of these research doctors, chem- BY GO ? ness and the public will benefit. Competi- Isis and scientists neither understand The overwhelming bulk of it. tion is the fundamental element that assures nor care about the patent system. They the vublic the benefit of even better prod- will not have the patents in any event. vmy HAVE sowz u Pro@ ExpitEssim ,ts-at even lower prices. No one on the sell- Most of them are astute enough to know OPPOSMON? ing end can be blamed for trying to avoid The leading university organizations have competition, but those of us who have athat in the last analysis, it is the U.S. taken no position on the Issue, and are gen- responsibility to the consumer would be dere- Goverronent that is paying their @ erauy uninformed on it. Some few special Uci of duty to permit monopoly conditions in anci expenses-not the company, univer- university-oriented persons have been im- situations where. it Is clearly not justified. sity or institution through which the portuned by the drug companies, some of,THERE A DisTiNcrroN i3rrwEEN THE money is funneled. which make contributions to research pro: HEALTH ASPECT OF THE PROBLEM AND n= If private patents are not permitted on grams in university laboratories. Some or D@SE RELATED RES@CH? Government re'earch then many com- .Zese contributions axe no more than $500 s AWi,ooo, but as tight as university bud gets Some people think so. The Kennedy pudes will compete in price for the pub- W these days, even contributions are memorandum said that patent rights would lic's business and the public Will benefit. E-nportant. not "normally" be permitted private oon- Mr. BAYH. Mr. President, will the tractors in health-related research. Senator Senator yield long enough for me to in- 17 TM Y Olt NON-PROPW ItESFAItCH' R3:Bxcorp, former Secretary of Health, Educe- Ject a note into @ @cussion? LABORATORY DISCOVEM SOMETHING VALUABLE tion. and Welfare, stated in debate that the Mr. HILL. Mr. President how Much AT @ @SLI, SUCH AS A CT= FOR CAN- Gov -errLment contributions in this field are , . I CER, WHY SHOULD IT NOT BE PERMr@xza TO,overwhelming that he concluded this was ume remains? LICENSE THE TWDUCT70N AND USE THE ROY- the rea in which the case against private The PRESIDING OFMCER. Eight ALTM FOR MORE ? patents was the strongest, and he will so minutes remain. The diMculty Is that the licensee usually vote. Undersecretary Wilbur Cohen helped Mr. HML@ I yield 3 minutes to the gets only a small part of the profit and the to work out the Long amendment, and feels Senator from Indiana. bulk of the high monopoly profit-u much that it adequatedy meets the problem. See,- The PRESIDING OFTICER. The as go percent of it-= be retained by the retary CeIebrezze does not oppose it. Senator from Indiana is recognized for private drug company acting as sole licensee. 'SUMMARY 3 minutes. This is a very tnefncient way to aid either @ch or education. The question is Simply whether the 196 Mr. BAYH. Mr. President, the Sen- I million Americans, having paid for a cure ator from Louisiana continues to mention WHY NOT WATR @ THE IM @N SUBCOM- fr ,n,,r, heart disease, stroke and many UrrrEE OF THE JUDICIARY COMMrrTEZ ACTS? +he Guthrie example as one in which a other diseases, are to be assured the new This -game subcommittee has been looking medicines at low competitive prices or company has apparently indulged in at the problem since 1961 without reaching whether they will be required for the re- practices designed to penalize the Pub- a conclusion. Meanwhile. Congress, espe- mainder of their lives to pay monopoly he and charge them unconscionable cia.Uy the Senate, has been acting repeatedly prices ranging from twenty to one thousand prices for drugs. on new research programs to provide that tunes what those drugs could have been I voted with the Senator from @uisi- where research is authorized to be done with availabe for. ana in his efforts last year to oppose public funds, the public will enjoy the full To use orinase (for diabetes) as an ex- benefit rather than place some private group ample, at European prices and under com- this kind of legislation, but I must say In position to plunder the public interest- peiltive conditions, it could be made avail- that if the Guthrie case is the best As a matter of fact, three of the five mem- able to a person requiring it for 36 cents per evidence the Senator has, I believe that bers of that subcommittee have voted twice month retail compared to $14. In TO years this demonstrates all the more the need this year for amendments to other bills to a diabetes sufferer would pay $43.20 In com- for more hearings. I talked with the forbid private patents on new research pro- petitive prices, compared to $1,680 when Senator and showed him that the in- grams- sold under the American style of drug formation the Children's Bureau gave ARE WE LUMY TO ENACT GENERAL LEGISLATION monopoly.. him was in error. The Children's Bureau ON THE @ AT TUM CON@? The orinase example is noteworthy because It is one of many good drugs developed In said that it costs 1.2 cents per test. The Hardly. If the legislation proposed would record of the Children's Bureau shows drastically alter the policy of the DIartment Europe under a different patent system. the of Defense and NASA, there would be tre- less rigid patent protection there permits that it cost 9.2 cents for the materials mendous opposition from a great number of @peans to have the product at prices far alone to give the test. It does not cover business Interests, and the Judiciary Com- below that which a licensed American drug the cost of the labor or the advertising- mittee has a rule of free debate. For ex- @ompa@y-which did not discover the orfly the cost of the medicine which was @ple, the civil rights acts have either by- drug-is able to extract from the public here. eight times the origii tl figure reported ME6ed the committee or they have been re- Mr. SALTONSTALL. Mr. President, by the Children's Bureau. @ with instructions to report on a cer- will the Senator from Alabama yield to it seems that it must be based on tain day. .me so that I may ask a question? specific facts. The Senator and the if the committee sought to enact a 'o Mr. HILL. I yield. Children's Bureau alluded to the fact guarantee private patents on Govemmettwre- Mr. SALTONST@. The Senator that Miles Laboratoi@ies, through the 14408 CONGRESSIONAL RECORD - SENAFE June 28, 1965 Aftey have never charged 52 cents. A list of the tests appears on page 32- 1 hope, whichever way the vote goes, that Wy did charge 42 cents. Now the cost 665,902 in number. If the Senator will Seiators on this side of the aisle will not -itdown to barel over 20 cents a test. take the figure and divide into that the vote to betray the public interest. I hope y the great majority of the Democrats will cast An accounting study was made by the cost of the material in the report of the their votes for the Long amendment. firm of Price, Waterhouse & Co., which Cliildren's Bureau, he will find that the I shall be glad to let the Senator from cost of the materials was approximately Well, now, I am against the aniend-, Louisiana see--I placed it in the RECORD 9.2 cents. ment and I do not yield for a moment to in answering one of his earlier state- . The PRESI]DING OFTICER. The the Senator from the greatest unfrozen meats-that proved that the cost to time of the Senator from Indiana has State in the Union when it comes to an Miles Laboratories and to the Ames Co. expired. interest in the public interest, and when was 17.4 cents. It seems to me that this Mr. LONG of Louisiana. I hope the it comes to a conscientious approach to is not an unreasonable burden which the Senator will read the statement I have the problem. public should have to bear. made. The Senator, of course, is a great The Senator from Texas should not I wish to make certain that the public believer in the public interest up until have said these things on the floor of the receives the benefit of this research, but one of his constituents, such as Miles Senate. It is not becoming of him. when private enterprise goes to all the Laboratories, comes into the picture, Mr. YARBOROUGH. Mr. President, trouble- which Miles Laboratories and then the Senator forgets about the rest will the Senator yield? the Ames Co. have, I do not believe that of his constituents. Mr. DIRKSEN. I yield, if I have time. it is unfair to request that they get aI hope that by his vote he will con- The PRESIDING OFFICER. The modest return on the money which they sider the overall interest of the public time of the Senator from Illinois has have spent. in this problem. expired. Mr. LONG of Louisiana. Mr. Presi- The PRESIDING OFIFICER. Who Mr. YARBOROUGH. Mr. President, dent, I yield myself 1 minute. yields time9 will the Senator yield? The PRESI]DING OFFICER. The Mr. HILL. Mr. President, how much Mr. DIRKSEN. I have no time. Senator from Louisiana is recognized for time remains? Mr. LONG of Louisiana. Mr. Presi- 1 minute. The PRESIDING OFFIICER. The dent, I ask unanimous consent that we Mr. LONG of Louisiana. Mr. Presi- Senator from Alabama has 7 minutes might have 2 additional minutes in or- dent, I[ have not responded to the Sen- remaining and the Senator from Lou- der that the Senator may respond, and ator's statement concerning Miles Labo- isiana has 8 minutes remaining. that I may then respond to the response? ratories, but I have prepared an answer Mr. BAYH. Mr. President, will the The PRESIDING OFFICER. Is there to it, and I @ be glad to make it avail- Senator from Louisiana yield me 15 sec- objections able to him, if he will read it, before Ionds? Mr. McCLELLAN. That is 2 minutes, place it in the RECORD. This is the in- Mr. LONG of Louisiana. I yield 30 and 2 minutes, and 2 minutm. formation which Miles Laboratories pre- seconds to the Senator from Indiana. - The PRESMING OFFICEP.- Is there sented; and I am sure the Senator The PRESMING OMCER. The objection? The Chair hears none, and realizes it is a self-serving statement of Senator from Indiana is recognized for the Senator from Texas is recognized for miles Laboratories. I prepared an an- 30 seconds. 2 minutes. ,Kter 0that, made by rsons ho re Mr. BAYH. I am certain that the b'ia,ed and prejudird nd whaveano Senator from Louisiana in referring to Mr. YARBOROUGH. Mr. President, cial interest in the matter. one of my constituents is well aware it is shocking that the minority leader Mr. BAYR. This is supported by one that I have more than 5 million of them should protest the tribute that I paid to of the most reliable accounting firms in and I am not going to let the private' such great members of his party in the the e(nmtry- interests of one corporation alter what Senate as Borah of Idaho, La FloRette of Mr. LONG of Louisiana. Which they I feel to be the best interests of my 5Wisconsin, Mi3Nary of Washington, and hired. Let me speak for a moment on million constituents, to whom the Sena- Norris of Nebraska. Norris, the father this point: The Massachusetts Public tQr refers. of TVA, who stood with PtankUn Delano Health Service estimated that the test 'The PRESIDING OFMCER. Who Roosevelt and cried at the dedication cost 1.2 cents. Here is a statement :fields time? of the great TVA dam when Frank- which I believe is an adequate answer,. Mr. HII.T.. Mr. President, I yield 2lin Delano Roosevelt put his arms axound, showing that this was one good example minutes to the distinguished minority not a Democrat, but a Republican, Sen- of exploitation of the public interest. leader. ator Norris, and said to him, "To you, I was saying to the Senator, whether he Mr. DIRKSEN. Mr. President, earlier more than to any other one main we owe agrees with it or not, that he should take today, the distinguished Senator from this; you saved the TVA." a look at this statement in any event. ITexas [Mr. YARBOROUGH] said: This was done by Senator Citorge Nor- believe that he will find these people are I regret that Senators on the other side ris in the area of the public interest-in being exploited by the abuse of patent of the aisle are not represented on the floor protecting the public interest. rights. If he will take a look at the today- Now we have a fight to keep this sub- statement, I am sure he will agree with That is an unkind and uncalled for re- ject in the public domain, and today the me. mark, because Senators are in and out n-Anority side was unrepresented on the Mr. BAYH. Mr. President, will the of the Chamber all the time, answering floor in a time Of crucial debate. Senator yield me 30 seconds to respond telephones, greeting visitors, and so forth. I do not claim to be the leader in this to the Senator from Louisiana? He said further. fight; I am merely a worker in the vine- Mr. LONG of Louisiana. Why does Maybe their consciences would not permit yard. The Senator from Louisiana is the not the Senator read the statement be- them to listen. leader and has worked, of course, in the fore he responds? Senate for approximately 20 years now, Mr. BAYH. I suggest that the Sena- As if the Senator from Texas has the and other Senators have led with hixn- tor from Louisiana read this Govern- only conscience in the Senxte. That, Ithe Senator from Alabama [Mr. HILL] ment document. A book entitled- have got to see. has led in public health, and I am as- The PRESEDING OFKCER. Just aThe Senator continues: tonished to hear the Senator say that I moment-who yields time? , There was a time when Republicans like should be ashamed of that tribute that I Mr. LONG of Louisiana. I yield 30 Borah, Norris, McNary, and LaPollette stood paid to men, Republicans like Norris, and seconds to the Senator from Indiana. up, when the minority was on our side Of La FoUette-I recall from reading history The PRESI]DING OFVICER. The the aisle, fighting to protect the public In- that Bob La Follette's grandfather and Senator from Indiana is recognized for terest. Abraham Lincoln's father used to sit on AgO seconds. I suppose the Senator from Texas is juries together in ILentuckY and out of = Mr@ BAYH. There is a book entitled the only defender on a white chaxger who these two lines Of American blood came MWPKU," published by the Department has the work of keeping the public in- great leadership, which added so much of Health, Education, and Welfare which terest. of distinction to American history-both is hardly a self-serving institution. The Senator continues: were on the side of the aisle that the dis- 14/4 June 28, 1965 CONGRESSIONAL RECORD -SENATE 09 tinguished minority leader represents so I have received many letters and tele- plauded the U.S. Public Health Service @ly. grams and communications from presi- for what it had done under the Kennedy- believe that the Senator from nii- dents and deans and scores of faculty Johnson patent policy in protecting the WnoIls should be extolling the fact-as I members throughout the United States rights of all the American people. did-that while those Republicans were In opposition to the amendment. The Senator from Louisiana stated fighting for the public interest they- As I cited the other day, such volun- that credit for this action on behalf of Norris, Borah, McNary, and La Follette- tary organizations in the field of health the public must be given to Dr. Luther @ were fighting against the majority on as the American Heart Association, the Terry, the Surgeon General, and to Dr. their own side of the aisle. My major American Cancer Society, the Associa- David E. Price, the Deputy Surgeon Gen- plea was to the Democrats on this side tion of American Medical Colleges, and eml, and all the staff people connected of the aisle to disregard the telephone the American Association of Colleges of with this action. calls they may have received, and to Pharmacy also oppose the amendment; I know that Senators will agree with vote for the public interest as Norris, as do the National Academy of Sciences me when I say: "Praise from Caesar is McNary, and La Follette did, whether and the American Council on Education. praise, indeed." or not they were in the majority in their Many other such organizations have The Senator from Louisiana has sought own party' My plea was primarily to stated their opposition. today to impeach some of the witnesses the Democrats in my party; I had no The Johnson administration also op- who have protested against the amend- reason to hope that the other party poses the amendment. Dr. Donald F. ment. He said that we have heard would listen to my pleas. I think it is Hornig, the director of the Office of nothing from the American Council on not a matter of party, but of conscience Science and Technology at the White Education. The truth Is that we re-, of each Senator, and I claim no super'- House, is also opposed to the amend- 'ceived a letter from Dr. Togim Wilson, ority to anybody else. Each Senator ment. He appeared before the commit- who is the director of the American knows his own duties and obligations tee of the distinguished Senator from Council on Education, in which he and hopes and aspirations. I call upon Arkansas only a few days ago and said said- their conscience on this bill, but r do not that this matter should be carefully The PRESIDING OFFICER. The purport to sit in judgment on the con- considered, that it should be thrashed time of the Senator has expired. science of any other man. out, and that those with experience and Mr. HILL. Has all my time expired? I plead with my fellow Democrats to knowledge in this field should be called The PRESIDING OFFICER. All fight in the public interest. My interest, in. Legislation should be passed, but time of the Senator has expired. when I made my statement, was that a only after we have had testimony by Mr. LONG of Louisiana. Mr. @- majority on this side vote with the Sena- expert witnesses. dent,I ask ous consent that the tor from Louisiana, regardless of what let me make this point cleax. The Senator may proceed for 3 addi@ the minority does. opposition to the amendment is not minutes. Mr. @. I ask unanimous consent based on rigid resistance to modifying The PRESIDING OFMCER. Is there that the minority leader may have 1 the existing Kennedy-Johnson govem- objection? The Phak hears none, and minute in which to make answer. ment patent policy. It is based on the @ is The PRESIDING OFFICER. Without conviction that any changes in I Govern- At, so ordered. objection, it is so ordered. ment patent policy should be adopted Mr. HILL. I merely @ to can at- DjR President, there only after careful consideration and tention to some of the witnesses who testified. r' M 0 a able tor to completely beg after an opportunity for full and fair u stio . *erqt e @oimman has a mind more presentation of the views of all inter- Dr. Wilson said: @it than that of my friend from ested organizations and individuals. may I respectfully suggest that a policy Texas in picking out a few names and As the distinguished Senator from Issue of such great signiftcance should be miming the whole substance of what was studied carefully, as a au tlve MgLuwl Arkansas has stated, his subcommittee by committees in both Housa of the COn- said. It was a reflection upon the con- of the Committee on the Judiciary has gress. Such an approach would @ science of Senators and their interest withAn recent days heard 18 witnesses constructive changes in present poUcy and in the public domain. on this subject, and at least 12 more at the same time avoid unfo@ and pos- The Senator from Texas can raise his witnesses remain to be heaxd. The sub- sible disastrous consequences tb,96t @ht voice from now until doomsday, but it committee is proceeding according to Occur as a result of wholemle oc- will not change the content of his utter- - edents c'Lsioned by the proposed amendment. ance on this floor earlier today. the rules and procedures and pree of the Senate in having witnesses come I have a communication from Dr. I shall let people read the RECORD, De- in to make their presentation, and then Frederick Seitz, president of the Na- cause here are the words that were having the committee make its report tional Academy of Science, In which he spoken. to the Senate. says: Mr. YARBOROUGH. Mr. President, The present patent policy was adopted We know far too little of the possible will the Senator from Louisiana yield me in 1963, following more than a year of consequences of changes envisaged by the 5 seconds? Mr. LONG of Louisiana. I yield 5 sec- interagency discussion on the basis of proposed amendment to warrant Its approval onds to the Senator from Texas. recommendations from 20 Federal ag-- without a very broad and pains g in- Mr. YARBOROUGH. r thank the cies and non-Federal authorities. jy@_ quiry. very able Senator from Illinois for his der this policy, every grantee and every From the Association of American kind remarks about my ability. I claim contractor of the Department of Health, Medical College there comes a communi- no such achievements. But the vote to- Education, and Welfare can be compelled cation signed by Robert C. Berson, ex- day will be its own voice and no one can to issue licenses. The Kennedy-John- ecutive director. He says: change it from now to doomsday. Me- son patent policy is an effective policy The development and distribution of thinks he doth protest too much. and it is protecting the consumer. No scientific Instruments and devices, such as Mr. HILL. Mr. President, how does monopoly or exclusive control is in- @tronic pacemakers, @cial klndeys, the time stand? @olved. and hopefully other artiftclal orgew, Is a function of instrument manu- The PRESIDING OFFICER. The This fact was brought out by the Sen- fpr.0t@e'@y. who may need some protection of Senator from Louisiana has 6 minutes ator from Indiana [Mr. BAYHI with ref- patent rights to continue this activity. 'It remaining; 5 minutes remain to the erence to the PKU tests, caff led out by further reffnements of this policy we de- Senator from Alabama [Mr. HILL]. the Miles Laboratories, through discov- simble, we would urge that leo"Uon to Mr. . I yield myself 5 minutes. eries made by Dr. Guthrie. The Sur- that end be carefully studied by appropriate On last Thursday, speaking for the geon General insisted that under our committees. large majority of the Committee on La- policy the results of the research be I have before me a communication @r and Public Welfare, I opposed the made available to everyone, no matter from the University of the Pacific in @ndment. Today I oppose the who he was or what he was. That was Califorrxia and another from the TJni- @endment, as I must, as chairman of done. versity of California. Prof. D. J. Cram the Committee on Labor and Public The Senator from Louisiana [Mr. of the University of California at Los Welfare. MNGI on the floor of the Senate ap- Angeles stated: 14410 CONGRESSIONAL RECORD - SENATE June 28, 1965 At the very least, extensive hearings on au equitable basis since the association has visions of the Long amendment would elim- Ith. proposed Long amendment should be major interest in the solution of this inate discretionary powers to take account of en to determine the public Interest problem.,, special circumstances. Flurthermorei the In this important matter. AMMUCAN COUNCIL ON r.DIUCATION provisions of this amendment have not been I have Ww in my hand a commumca ii adequately studied as to their possible Im- - @an Wilson, director, American Counc@. pact on the public welfare." tion from Mr. Karl Polkers, president Of on Education: "May I respectfully suggest that a policy CONNECTICUT the Stanford Research Institute, i3oint- . such great significance should be Arnold D. Welch, Ph. D., M.D.; Eugene Mg- ing oUt how important this matter is and issue of studied carefully, as a substantive matter, gins, professor of pharmacology, Yale Uni- how it should be gone.into with the bv committees in both Ho@ of the Con- versity: "I must speak most strongly to the greatest care by a @ttee before any i4@? Such an approach would assure oon- effect that the Long amendment would seem action is taken. structive changes in present policy and at to me to exert a devastating effect on the I I have before me a communication the same time avoid unforeseen and possible future development of new drugs in this from Prof. Arnold D@ Welch, of Yale disastrous consequences that might occur country, and I sincerely and strongly urge University. I shall not read all of the as a result of wholesale cqanges occasioned that extensive hearings be held on this sub- communication because my time is lim- by the proposed amendment." ject, if necessary, with a.view to making any ited. In part he said: NATIONAL ACADEMY OF SCIENCES influence of Government funds upon coop- eratlve research between Governirnent gran- I must speak most strongly to the effect F'rederick Seitz, president, National Acad- tees and Industrial organizations reflect the that the Long amendment would @ to emy of Science: me to exert a devastating effect on the future "I myself feel that the cominittee's oonclu- true spirit of cooperation ' rather than puiu- development of new drugs in this Country sion is entitled to great respect as a general tive control, as seems to be proposed by the proposition. I particularly feel that we Long amendment." The PRESIDDING OFFUCER. The know far too little of the possible conse- FLORMA time of the Senator has expired. qtiences of changes envisaged by the pro- Werner Herz, professor of chemistry, the Mr. HILL. W. President, will the posed amendment to wtrrant its approval FIGrida State University: "My letter in this Senator yield me 1 more minute? without a very b.-oad and painstaking instance Is prompted by the strong belief Mr. LONG of @uisiana. I yield 1 inquiry." that the Long amendment, while supern- additional n2inute to the Senator from @ATION OF AMERICAN MEDICAL COLLECZS cially in @rd with a policy I have favored, . will in fact do harm rather than @." @ama. Robert C. Berson, M.D., executive director. Mr.'FM.T. I @ not quote all of the 'The development and distribution of sci- GicoRGrA 4rommunications, but I point out that entific instruments and devices, such as Robert B. Greenblatt, M.D., professor, De- electronic era, artificial kidneys, and, partment of Endocrinology, Medical College in M&tion to the ones I have read, I have hopefully, other artificial Organs, Is properly of Georgia: "As one who has done consider- received communications from the lvlor- a function of instrument manufacturers who able research with drugs provided me by ida State University, the Medical College nrlay need some protection of patent rights various pharmaceutical houses, I am deeply of Georgia, and the head of the Depart- to continue thls activity. If further refine- concerned. This amendment could deprive ment of Chemistry at the University of ments of this policy are desirable, we would me of the opportunity to work with many an nlinois. He is @ past president of urge that legislation to that end be carefully interesting compound which could help In the American Chemical Society. He is studied by appropriate committees." the advance of our knowledge and help keep Awast president of the American Associ- @CAN CANCER SOCIETY the United States In the forefront of medi- E.tion for the Advancement of Science. @ld S. Diehl, M.D., senior vice president cal research. * * * as the recipient of five @In @ communication, Roger Ad@ for research and medical affairs, American awards from the American Medical la- said: Cancer Society: "The American Cancer @ tion I believe I speak with some authority clety, noting the @nt sentiment of the in saying that I do not believe the amend T'he Long amendment Is certainly -not in Senate regarding the policy on patents grow- ment necessary nor does it in any way en: the public Interest for it would deter devel- =olt of federally Sponsored research, would han@e the general good of drug researcIL" opmme3mte rather than expedite 'them @ request favorable consideration of @O'LS M=y potential industrial products Of lu- S. 512 without Inclusion of any amendments Roger Adama, University of @oJs, head torest to the public would never be developed.. Dn "nts which were added to the original of the chemistry department; emeritus past I have a communication from Johns the bill as it was introduced an Jan- president, American Chemical Society; past Hopk#m University stating: t@lty5f, 1965.11 president, American Association for the Ad- Such an amendment would have a severely CALUIOUNU vancement of Science: "The Long amend- limiting effect on clinical pharmacologists Robert E. Burns, president, University of ment is certainly not in the public Interest like myself. the Pacific: "We feel I 0 * that the Federal for it would deter developments rather than Government's existing policies - patents expedite them and many potential indus- Prom that same University I have a d copyrights with respect to federally Sup- trial products of interest to the public would communication from a famous woman ported research are equitable and reasonable never be deveIGped.11 doctor, Dr. Helen B. Taussig, who, along and have not impaired either the flow of In- MAAY@ with Dr. Blalock, did the flmt open heart @tion or the transfer of research dis- Louis Lasagna, M-D., Division of Clinical surgery. In that letter, Dr. Taussig said: 00veries into useful healing and life-saving Pharmacology, the Johns Hopkins University @ procedures. * * * It is our sincere hope "Such an amendment would have a severe- Just a line to let you know that 1 W4 that your committee will see fit to reject ly limiting effect on clinical pharmacological strongly behind your bill. Senator LoxWs amendment." like myself who are sometimes eager to par- The PRESIDING OFMCER. The D. J. Cram, professor of chemistry, Univer- ticip@ in drug research in its early and most time of the Senator has expired. sity of California, Los Angeles: "At the very difficult steps. I hope it will be possible to least, extensive hearings on the proposed pass bill S. 512 without this undesirable Mr. E(IIJ.. Mr. Presidcnt, I ask unan- Long amendment should be entertained to amendment." lmous consent that other statements of determine the public interest in this lmom- Helen B. 7&usaig, MM., professor of pedi- a like c ter which I hold in my tant mEtter.,, @cs (emeritus), the Johns Hopkins Hos- hand-and there are many from all over Karl Polkers, Ph. D., SC. D., president, Stan- pital: "Just a line to let you know that I the United Sta@May be p@@ in the ford Research Institute: "As a general rule, am strongly behind your bill S. 5i2 and feel Rr,coRD at this point. Stanford @ch Institute does not com- that the Long amendment to S. 512 takes the There being no objectior4 the conimu- ment on pending legislation. However, there teeth Gut of your bill and would make it in is a piece of proposed legislation before your hard for the National Institutes of Health nications were ordered to be printed Committee on Labor and Public Welfare and the other Federal org@tions Inter- the RTCORD, as follows: which has such far-reaching implications to ested in advancement of medical know-how, Ex@ PROM TO SENATOR L'STER researth and development In the United would iftnd great difaculty In placing con- Mm or ALABAMA IN PoarTION TO -THZ States that I feel some comment is in order. tllt.1. Am@@ OF SMATOR RUSSELL Lox(; 31 am referring to the so-called Long araend- MASSACI-IUS@ AMERICAN @RT ASSOCIATION ment. The importance of developing J. M. Heyman, Jr., MD., dean, TWts Uni- Rome A. Betts. executive director, Amert- a Bound, workable Government patent policy @ Heart iation (June 7. 1965): is so great that I would like to urge that the versity School of Medicine: "Ca y the IW --American Heart Association concurs in Long amendment be tabled until there can Government should have an interest In the Senate action defeating Long amendment Dn be a complete study and public hearings on product of the research it supports. There patent rights June 2. The @iation is the subject." can be no quarrel with that. But the Long hopeful that @ important matter may now Lee A. DuBridge, president, California In- amendment, as written. Is manifestly unfair be r"Wved In the Judiciary Committee on stitute of Technology: "The sweeping pro- to the university." une 28, 1965 CONGRESSIONAL RECORD -SENATE 14411 4iM. Kent W@on, chairman, Department of "One of the very great things about Amer- medical research, were to be any less creative chemistry, Tufts University School of Medi- loan research has been the way In which vigorous, and enthusiastic than in the past cine: "The Long amendment would do seri- Government, industry, and the universities In joining taetr efforts with those of univer. ous damage to the fruitful cooperation be- have worked together. The question at fdty physicians In solving biomedical probl- tween all facets of the scientific community patent policy is too Important to allow a leme.11 and, therefore, in my judgment is against hurried decision to jeop the very basis TEXAS the public interest." of the excellent progress we are n"ng." Richard S. Turner, professor of chemistry, Chester S. Keefer, M.D., former special as- James M. Hester, president, New York Rice University: '@t let me say that I sistant to the Secretary of EIEW for Health University: "7be Long amendment removes oppose the amendment. My present pur- and Medical Affairs: "I respectfully urge that discretionary powers from the administrative pose, however, Is to urge In the @upst action be deferred on the Long amendment heads of agencies and makes the proposed terms that action on the @g amendment until the Congress has had the opportunity policy mandatory. The OfBce of Science and be deferred until such time as the whole gen- to d@ne the basic guidelines of Gov- Technology has well stated the complexity eral question of -patent policy can be made ernment patent policies." of the situation and the need for full COU- the subject of deteAled investigation, debate, MICHIGAN sideratlon of the wide range of Issues In- and public hearing." Robert C. Edlerfield, professor of chem- volved." NORTH CAROLINA UTAH istry, University of Michigan: "Protest this D. M. Hammond, professor and head, de- (Long amendments) to the extent of my James W. Bawden, assistant dean and co- pw=ent of zoology, Utah Mte University: ability and solicit your efforts to defeat them. ordinator Of research, I)ental Research Cen- --In my Opinion this is an important prob-@ I speak solely as an Individual with no con- ter, University of North Carolina: "I urge lem, action on which should be deferred nection with any drug house but as one with that you oppose passage of this legislation- until consideration has been given to the@ experience in this area who has developed We have given careful consideration to the fundamental question of patent policies for the only practical curative drug for relaxing situation and feel that the amendment Is not Goverranent-supported re malaria which has been properly assigned to to the advantage of high-level scientific re- "In my opinion any hasty legislative ac- the Government. As a former chairman of search." tion which might jeopardize the cooperative the National Research Council Division of NEW HAMPSHIRE relationship between University scientists Chemistry and a member of the National James Brian Quinn, professor of business and industry would be highly unfortunate. Academy of Sciences I feel that I have a administration, Dartmouth College: "I con- Therefore, I am -king that this problem suMcdently objective view to consider Sena- sider the Long amendment to bills involving receive thorough consideration before any@ tor LONGS proposals with serious alarms." scientific and technological development to action Is taken on the Long amendment." rssiss@ be one of the most dangerous and Ul Lewis Nobles, dean, the Graduate School, pr ever put forward in the field of Randolph T. Major, University of Virginia: the University of Mississippi: "In nay opin- Government contracting. As a specialist In , ion, the Long rider, if adopted, would greatly the administration of scientific,and techni- I am mm that all would agree that the hamper all of our efforts (university, Gov- cal p , I urge you to bring all possible Government should have an Interest In the ernment and industry) to improve research political pressure against this amendment.. results of the research It irup@. But the relations among university, industry and OHIO Long amendment seems to me clearly unfair to university and Industrial scientists who Government personnel." Melvin S. Newman, professor of organie, may collaborate with Govermmaent scientists MISSOURI chemistry, the Ohio State University: "As on research programs." Elmer Ellis, president, University of Mis- 9, person who has spent over, 30 years in re- @NSIN Mmurt: "I am not advocating undue protec- search In universities as a staff member and gWn MWEU, professor emeritus, 'Won for any private interests which may as a member of the National Academy Of Solar Energy Laboratory, the University of be Involved in this problem, but simply Sciences, Organic Chemistry Division, I urge Wisconsin: "Thb problem of the ownership stressing the value of the patent policy that very careful attention be given to any to our total national interests and the danger laws now being considered which threaten to of patentable Ideas developed by Scientists Involved if , ve auton2htie-ally remove bene- break down the present system of research receiving part of their support from Gov- fits of the patent policy from any and every, support and cooperation between members ernment funds to very complicated. Car- a,etivity.whie.a may have received any type of universities, industry and Government." t@y the Government which supplies part of Federal support." of the support of a r project Is en- PENNSYLVANIA titled to free use of any Inventions which Charles C. Price, chairman, Department of may come from this research. On the other John P. TALmhooy, Ph. D., professor of bio- Chemistry, University of Pennsylvania: "The hand, the progress toward public use of these chemistry, the University of Nebraska, Col- @ng amendment will greatly decrease the Inventions may well be accelerated If "nts lege of Medicine: "If the Long amendment progress of medical science in this country, can be issued for commercial development. Is applied to all Govemment-supported re- at least its availability for the benefit of the The U.S. system of patents has been search, the real vigor in science In the United public. I hope you will oppose this amend- uniquely an in developing new man- States of America will quite simply and ul- ment vigorously, in favor of a more judicious ufacturing projects and has resulted in an @tely disappear from the scene." and long-range study of the entire problem extraordinary high standard of living. @e NEW @LY of the relationship of the private and public of my friends are quite concerned that if Robert P. Goheen, president, Princeton sectors of our scientific and technological the Long amendment is adopted by Con- University: "Present patent policies ran endeavors." gress, that the advances in the country's probably be Improved. However, this corn- Charles S. Cameron, president, Hahne- economics may suffer a setback because pri- plex and important subject merits its own mann Medical College and Hospital: ,Surely vate capital Will not be so readily available thoughtful and exhaustive study, and it the Government's and the publials interests for c g our development of new inven- should not be approached by the hasty at- can be safeguarded without the blanket pro- tions. I hope that you and your commit- tachment of amendments to any and all bills vision of Mr. LONG'S amendment which, as tee members will give careful thought to having to do with Government sponsored we see It, will not warm, but smother the the implications of this amendment." research." free association of scientific minds which is the lifeblood of scientific discovery and tec Mr. LONG of Louisiana and Mr. MIL - NEW YORK Inical progress." h- LER addressed the Chair. Dr. W. H. SebreH, Jr., professor of nutri- The PRESI]DING OF71CER. Who tion, Columbia University: "As you are well RHODE ISLAND aware, there are many difficult problems to Bwmby C. Keeney, president, Brown Uni- yields time? be resolved in reaching a fair decision in so versity: "The proposed Long amendment has Mr. LONG of Louisiam. Mr. Presi- complicated a matter, particularly since been discussed here with people who have dent, how much time have I g? university, commercial, and Government sup- spent many years studying the problems of The PRESIDDING O"7CER. The port are all concerned In medical research Ftderal support of research and education In @tor from @uisi=a has 6 minutes accomplishments. No one questions that the life sciences. We recognize the complex- re ng tmder @ controL the Government should have an interest in ity of patent and copyright problems. the results of the research to which it has '.'I certainly endorse Dr. Donald 33ornig's Mr. LONG of Louidam. Is there contributed. However, the Long amendment general approach to this amendment. The more time available? appears to me to be unfair to the other amendment appears to be an oversimplified The PRESMING An @terests that are concerned. I would, there- approach to a complex problem." time has expired except the 6 minutes e, like to urge that you give your support TENNESSEE rem under the control of the Sen- Wdeferring the Long amendment until there Grant W. Liddle, professor of medicine, ator from Louisiana. has been thorough consideration of the Vanderbilt University: "It would be a gelm- Mr. LONG of Louisiam. Mr. Pr@- broad questions involved in arriving at a nine tragedy for all of us if, as a result of dent, I yield myself 2 minutes' sound and fair patent policy for Government- legislation, the pharmaceutical Industry, Mr. . Mr. President, wiD the suDDorted research. which ham unions contributions to make to Spn%Ltnr viold9 14412 CONGRESSIONAL RECORD - SENATE June 28, 1965 'T@ULONC. of Louisiana. I have only of "lobbying" on behalf of certain business prima facie case to the end that various 2 tes. groups. These groups believe that the patent conunercial concerns, particularly drug Mr. Pr@dent, it is obvious that efforts rights to ideas developed with Federal funds companies, will be unduly enriched by are being made to make the universities should be awarded to the contracting busi- a failure to adopt the ainendinent and front for the drug companies. I under- ness firm or nonprofit Institution. the @oing of their research by the I'@bbying" is a pejorative, often imprecise stand that. I have exposed on the floor term, and there is little point in attempting taxpayers of the country. I think it of the Senate at least two individUaU to plilmh the SenAtor's charges. But there would be a mistake to.. set, a precedent who claimed to speak, for universities is much that should be said and done about here today, when we have this great con- when they were actually Spe@ for the failure of the Government to articulate troversy on patents, of seeming to ap- a clear policy in this troublesom axea. prove of the undue enrichment of their &W companies, and when they Some Federal agencies, notablye the Atomic have been here speaking for iations, Drivate concerns as a result of research F.nergy Commission, follow a clear and c@' hnanced by the taxpayers. they have been really 15Peaking I for sistent rule. Except In cases where the ru- pharmaceutical monopolies. search contractor already holds patents in Furthermore, I well remember not so I should like to point out that Dr. Fred closely related areas, all patents issuing from, long ago the sound amendment of the, Cagle, of Tulane University, is the Federal contracts automatically revert to the Senator from Alabama to the tidelands c of research activities of the Government. But other agencies axe per- bill, which I supported, and which MY American Council on EducatioL That mitted by law to waive the patent claims of friend from Louisiana opposed, in which is the biggest of the associations. He the'Govemment. we urged then that royalties from the oil C The battle now being waged, both in the lands go to support education. I suggest has said that the ouncil on Education Congress and within the administration, Is, is being quoted as being opposed to the that in connection with the payment for over which policy shall prevail. Senator search by the taxpayers we have the Long amendment. That is completely RUSSELL B, LONC; Insists that the patents re incorrect because the organization has growing out of Federal contracts belong to right not to give away the benefits that the same objectives as does the Senator the public, and he has attached amendments flow from that research to commercial from Louisiana, that is, to make the to several important bills which uphold that concerns in this country. At least we fruits of reseamh freely available to the principle. The patent law bar, industry should be insisting that the proceeds 90 public as quickly as possible. groups and many universities are ranged on to some such worthwhile public purpose the other side. They contend that the pros- as ald to education. Some of the letters to which the Sen- pect of owning patent rights provides an Im- ator from Alabama referred had to do portant Incentive to solve uroblems quickly. The PRESIDING OFMCER. The 2 with my amendment to the higher edu- And they @ the question of whether the minutes yielded to the Senator from cation bill and are not at all relevant Government has the right to patents where Oregon have expired. with regard to the question of Govern- the contracting researcher draws upon, aMr. MORSE. We have in this country ment-sponsored research for health as previously acquired expertise. .what amounts to a shakedown of the oon@ed in the bill now before the In October 1963, the late President Ken- American taxpayer by commercial con- nedy issued a patent memorandum which cems that wish to unduly enrich them- Senate. purported to provide guidance for Govern- it has been said that the Senator from -elves at the expense of the public purse. ment agencies. But that document and the' Louisiana stated that he knew Of no MiS- Patent Advisory Panel subsequently formed This is an example of it. &.going on,,,,i = out one case in appear only to have confused matters. Mr. IX)NO of Louisiana. Mr. Presi- h there violation of the Patent policy issues can be complex, but dent, I yield 2 minutes to the Senator 'Yw. In that case the @rch was done not so esoteric as spokesmen for the patent from Michigan. L in Government @ratories by Govern- bar cleAm when they chastise laymen for Mr. HART. Mr. President, one oom- ment researchers. After I looked into speaking out. VVhen a private business enter- ment that is frequently made of the the case, the Merck Co. assigned the Pat- prise contracts and pays for research and Senate and the Congress is that there ent rights to the @vernment because development work, there is seldom if ever are too many lawyers in it. I have never any question about Its right to the patents they knew It was against the law for that may emerge. The same principle should heard the charge made that there are too them to have those rights. But the apply in the case of Government-sponsored many patent lawyers. Indeed, I doubt Government lost its rights to the foreign -%esearch. There is no good reason why the if there are my. This may explain in patents as a result of what the Merck taxpayers should be expected to pay $15 part why there are few of us who are Co. did in that case. billion- a year for research and then turn comfortable and assured In the treat- I can point to another case to show over to the adequately compensated con- Ment and dis@tion of matters relating trae-to;: exclusive patent rights. how Merck Co. has been using pressure T. sure, the rights of the owners Of to patent rights. in order to fbad ways to get Patents, in "back-ground patents" should be protected It is for this reason that I am delighted violation of the law, on Government re- when they engage In Government contract that the able Senator from Ar search in the field of tranq@rs Which work. But aside from that exception, all [Mr. MCCLELLAr;l is directing now an are used for mental health problen2s. patents developed under Federal contracts overall analysis of the position which the They try, often in violation of law, to get should revert to the Government, and the Federal @verrunent should take With hold of patents on'Government research Government In turn should make the pat- respect to discoveries and patents result- even when the work is done by the Gov- ented knowledge freely available to all poten- ing from Government-finan@ research. tial users. errunent's own employees. This is the first such review in many, What protection have we when some Mr. LONG of Louisiana. I have out- many years; years during which the Fed- private concern gets its foot in the door lined my arguments. I do not have much eral Government has become a most iin- and can make a case for private patents more time to go into the issue. I should portant contributor to such research. In on Government reseamh? like to offer my remaining time to the the few years I have been permitted to @ @z OVER PA@s senator from Oregon (Mr. moRszi and be a participant in the Senate business, I Mr. President, an interesting editorial the Senator from Michigan [Mr. HART] -have supported the so-called Long concerning the general issue debated in I yield 2 n2inutes to the Senator from amendment the several times it has been the Senate earlier today was published Oregon. offered to various bills. For the first in the Washington Post on May 26,1965, The PRESI]DING OFFICER. The time I opposed this amendment when a entitled "Hassle Over Patents.,' Senator from Oregon is recognized for few weeks ago it was proposed to be I ask unanimous consent to have this 2 minutes. added to the NASA authorization bill. editorial printed in the RzcoRD. . Mr. MORSE. Mr; President, as mem- It seems to me desirable that we await There being no objection, the editorial ber of the Committee on Labor and Pub- the full record of the McClellan study was ordered to be printed in the RZCORD, lic Welfaxe, it is with reluctance that Iand seek to apply across the board a as follows: have come to the conclusion that the prudent rule. On eaxlier votes, no such HASSLZ OVM PATENTS amendment of the Senator from Louisi- study was underway. I would anticipate ana should be adopted. There is a ques- taking a similar position on any other. *Me long smoldering dispute over the pat- tion of fact in the debate so far as X am authorization or appropriation bills enting of discoveries made In the course of federally financed research and development concerned that will determine my vote which relate, as did the NASA bill, to re- work has awed up again. Senator IIEZ Mm- on tne issue, and that is whether or not search which is related to commercial CALY. in 9, speech on the floor of the Senate, the evidence presented by the Senator products. But the Long amendment now .--- , .-A -+),.re Qllnnnrt-q apending Is to a bill which provides in June 28, 1965 CONGRESSIONAL RECORD -SENATE 14413 for health research. For some 2 ment-wise basis, and as I stated at the in these lights when both put up some- s under the leadership of the late time of the vote on the NASA authori- thing. and respected Senator Kefauver, I was zation bill, I believe that we should await The amendment of the Senator from a member of the subcommittee which the results of that study. Louisiana would turn over practically all heard much testimony on patents in the If changes are to be made in the Gov- patent to the Government when- field of medicine. emment-wide patent policy, they should ever appropriated funds are expended Even in this field I confess to a con- be made on a Goverrunent-wide.b@ for any scientific or technological re- tinuing uncertainty as to what the @ after full heaxings and study. If Senator @h or development activity-regard- answer should be, but it is a field In MCCLZLLAlq ,s heaxings do not produce an less of how much the contractor puts up. which I have heard extensive testimony overan policy that we can agree to, then It is one sided and unfair, and it will and much discussion. Indeed, I was there would be more justification for tend to retard inventiveness because the alone with the Senator from Tennessee using the case-by-case approach of Sen- rewards therefrom will be lost by private in supporting the proposition that the ator LONG. industry. general patent law should be modified Our vote today does not bind us to I ask unanimous consent that a tele- as it relates to drug patents, that the ex- approving the actions and policies of gram in opposition to this amendment clusive period should be reduced sub- every President and every Secretary of from the president of Iowa State Tjniver- stantiauy, and that li4censer, be required Health, Education, and Welfare and sity and a letter in opposition to the to be given by a patent holder to any every Surgeon General. And It is impor- amendment from the professor of or- responsible @ on the payment of a tant to note that the Senator from Loui- ganic chemistry of Iowa University be reasonable royalty af ter the period of siana stated on the Senate floor last @i- printed at this point in the RZCORD. the reduced exclusive paUnt right had day that he does not disagree with the There being no objection, the telegram run. So I bring to this area of Govern- present HEW patent policy. The amend- and letter were ordered to be printed in ment research some rather established ment, he said, simply codified: "what the RECORD, as fOllOWS: opinions as to the course which best HEW isdoing and what it thinks should Abms, IOWA, serves the public welfare. I hope that be done. I am not quarreling with that June 22,1965. as the overall patent policy can be de- agency. I am in support of the position Senator JACR MILLER, veloped within the McCle@ committee, that it has followed." New Senate Office Building, that I may persuade others in the com- Thus, in the words of the Senator from Washington, D.C.: laws State University respectfully urg- mittee to this point of view with respect Louisiana himself, the problem is not In your support in defeating Senator LONCVB @ to research relating to health. @l do not the present, but rather. "the risk that tempt to force his patent amendment on the know bow long it will be before the effort this program should become subject to House-passed health research fwMltieg bill, which began some weeks ago in the Mc- efforts of those who would exploit the H.B. 2984. senator LomG's amendment would Clellan committee reaches the point of public interest and bring about a change seriously limit university r enactment of basic patent policy on the in that policy." j@ H. RMTON, President, Zowa State University. statute books. This year- I would The point is therefore, that there is no doubt it. This Congress? One cannot urgency on i@is matter. We do have STATZ UNLVZRoixt OF IOWA certain, But the -Senator from time, insofar as HEW is concerned, to Iowa City, Iowa, June 22, @965. 4ikans" [Mr. MCCLELLANI can be let Senator MCCLELLAN eomplet8 his senotor JACK MILLER, unted on to move the basic study as study, so that we can evolve the present- U.S. Senate, objectively as possible. I believe that ly satisfactory policy of HEW into a leg- Washington, D.C. the Long amendment, which provides islative policy that is appropriate for DzAs SzNAToR This letter to being flexibility, represents a prudent policy every agency of the Government. If by written to give,you my views on the Smator for the transition period, however long next year or the year after we still h LoN(; patent amendment to the House-p@ ave health research facilities bill, IM. 2984. it may be, before we are I'n position to no overall policy by legislation, and if it We In the academic field working in medi- make @ determination with respect then appears that particular legislation cal chemistry are @tly dependent upn to the legislation now pending in the 'is needed for HEW or NASA or any Other drug fir-st for the @ning of compounds McClellan committee. It is just possible agency, we can act then. Our action to- for physiological action. of the Long, that a cancer cure could "fall out" from day does not keep us from doing that. amendment would prevent tbJLs ent Govemment-@ced research during My ordy point is that I do not believe and seriously hincier @ch on the prepa- this, we hope, brief interim period. The ration of new drugs and impede scientific we should act on an ageney-by-agency progress which results from such cou&bors- Long formula would be of real value basis until it is apparent that that is the tion. under such circumstances. only way we will get action in this fie d. I hope that you will oppose this amend- It is for @ reason, therefore, that I There will be ample time for that ki id ment when It comes up before the Senate. shall support the Long amendment, it of approach when and if it becomes nec- In so doing, you will ald the continuation of relating to medicine and public health essary. I shall, therefore, vote against the Nation's economic growth. research, not to commercial rockets or the amendment which the Senator from Sincerely yours, tools. Louisiana has proposed today. STANLEY WAWZONEX, The PRESIDING OFFICER. The Mr. R. Mr. President,-the Long Professor, Organic Chemistry. time of the Senator has expired. amendment should be defe@d, and it The PRESIDING OFT7CER. All Mr. BUL. Mr. President, I yield 2 should be tabled, time having expired the question is on minutes to the Senator from New York. This points up the same old issue agreeing to the ame@dment of the Sena- Mr. KENNEDY of New York. Mr. tor from Louisiana Mft. LoN(;], No. 298. President, I want to be on record re which the Senator from Louisiana and I gard- debated last January 28---page 1497 Of On this question the yeas and nays have ing this vote, because I want the RECORD the RECORD of that da@at the time of been ordered. to reflect that in voting against the consideration of the water Pollution Mr. PASTORE. Mr. President- amendment proposed by the Senator The PRESMING OF71CER. AU time from Louisiana, I am doing so for pro- control bill. has expired. . cedural reasons only. I said then and I say now that it is un- Mr. PASTORE. Mr. President, I move I believe basically that the Govern- fair to turn over all patents and inven- to lay amendment of the Senator from ment should retain title to inventions tions to.the Federal Goverrunent without L*uislana on the table. discovered through research that it has regard to how much of the contractor's financed. This is particularly true where Own money and resources are involved- .. Mr- @S Mr. President, will matters regarding health are concerned, just because some Federal money is in- me Senator withhold his motion? but I continue to be disturbed about the volved in a contract. The PRESI]DING OMCER. Will This is not an issue of turning over all the Senator withhold his motion? patent and invention rights to the Fed- Mr. . Mr. President- eral Government when the Goverrunent The PRESI]DING OFMCER. Does the a different Goverrunent agency. Sen- puts up all of the money. It is an issue Senator from Rhode Island withhold his ator MCCLELLAN'S subcomnlittee is still of whether the contractor and the Ped- motion? eon.qiderinly this matter on a Govern- eml Goverrunent should share equitably N[r. PASTORE.. Mr. President, I move 14414 CONGRESSIONAL RECORD -SENATE June 28, 1965 lay the amendment of the 'Senator If present and voting, the Senator from Senator from Alabama [Mr. HILL] and from Louisiana on the table. Wyoming would vote "Yea" and the Sm- the Senator from Arkansas [Mr. mc- The PRESMING OFMCER. The ator from Pennsylvania would vote CLELLANI that the Matter needs exhaus- question is on the motion of the Senator "nay.@ tive study. It needs the considered judg- from Rhode Wand to lay on the table the On this vote, the Senator from Ne- ment based upon hearings by a proper amendment of the Senator from Ijouisi- braska [Mr. HRusKA] is paired with the committee of the Senate. That oom- ana [Mr. LONG]. Senator from South Dakota [Mr. Me- mittee is now engaged in h on Mr. Mr. President- GovzRNI. If present and voting, the @ specific question. The PRF-SI]DING OFKCEP.- The Senator from Nebraska would vote "yea" For that reason, I made the motion to question is- on agreeing to the motion of and the Senator from South Dakota lay the amendment on the table, merely the Senator from Rhode Island. would vote "nay." as a procedural matter, and not because Mr. MORSE. Mr. President, I ask for The result was announced-yeas 55, I am opposed to the objective of the par- the yeas and nays. nays 36, as follows: ticular amendment. The yeas and nays were ordered. [No. 154 reg.] I should hope that the committee'@Cf The PRESEDING OFTTCER. The YEAS-55 Congress which is entrusted with this question is on agreeing to the motion of Aiken Inouye Pastore very important problem would act ex- the Senator from Rhode Island to lay AUott Jackson Pearson peditiously so that we might achieved a on the table the amendment of the Sell- 13ayh iavits Pell settled national policy concerning the Bennett Jordan, N.C. Prouty ator from Louisiana [Mr. LONG]. On Boggs Jordan, Idaho Robertson protection of patent rights when PWeral this question the yeas and nays have carison Kennedy, Maas. Russell, B.C. money is used in these research pro- been ordered, and the clerk will call the Kennedy, N.Y. Russell, Ga. grams. roll. Cooper Kuchel saltonstau Mr. JAVIT'S. Mr. President I should Curtis Lausche BODtt The legislative clerk called the roll. Dirksen Magnuson Smith like to Identify myself with th; views of Mr. MANS (when his name was @minick by Sparkman the Senator from Rhode Island. called). I have a pair with the senior Butiand McClellan Stennis I feel exwtly that way. I agree with @n Miller s@@n il Senator from Virginia [Mr. BYRD]. if Fannin moncwe Thurmond the Senator in every way. he were present and voting, he would Puibright Monroney Tower Mr. DODD. Mr. President, I want to vote "yea." U I were at liberty to vote, Hayden Morton Williams, N.J. take Just a moment to note why I voted I would vote "nay." Therefore, I with- Hickenlooper Mundt Williams, Del. against tabling the amendment of the Hill murpl2y hold my vote. Holland Muskie distinguished from LO The rola can was concluded. NAYS-36 Senator LONG has labored lndefa;Ugs- Mr. LONG of Louisiana. I armounce . - bly for many years on patent policy that the Senator from Pennsylvania [Aft. Ancierson Fbng Montoyg6 amendments he and a number of our Bartlett Gore Morse CLA=I, the Senator from South Da- Bass Gruening Moss colleagues deem to best serve the public kota [Mr. McGovzRNI, the Senator from Bible Harris Nelson interest. and [Aft. TyDiNGs]. are absent on Brewster Hart Neuberger I have dis -@l Burdick Hartke Proxmire agreed with the wisdom of business. Byrd, W. Va. Long, Mo. Randolph some of these amendments because I be- 7-@er armounce that the Senator cmnnoL Long, La. Rlbicoff lieve that the traditional American pat- from Virginia [Mr. BYRD], is necessarily Church McGee Smathers ent policy of rewarding private inven- Dodd McIntyre Tal absent. @las McNamara Yarborough tive energy and genius and protecting On this vote, the Senator from Penn- Miender Metcalf Young, Ohio its fruits has been the key to much of sylvania [Mr. CLARX] is paired with the NOT VOTING-9 ' the material greatness of our Nation. Senator from Wyoming [Mr. S@N]. Byrd Va. Hruska Simpson At the saane time, I believe that the If present @ voting, the &mtor from @i eld Tydinp health, even the life, of every American, Pennsylvania would vote "nay" and the @n McGovern Young, N. Dak. indeed of every person in the world is Senator from Wyoming would vote So Mr. PAsToRE's motion to lay on the intimately connected with the achieve- yes. table the amendment of Mr. LONG of ments of modern medicine. On this vote, the Senator from Mary- Louisiana was agreed to. Therefore, I believe that medical dis- land [Mr. TyDxNGs] is paired with the Mr. B=. Aft. President, I move to coveries flnan@ by public funds present Senator from New Hampshire [Mr. COT- reconsider the vote by which the motion a case significantly different from other Toxi. If present and voting, the Sena- to lay the amendment on the table was scientific and mechanical developments tor from Maryland would vote "nay" and a-greed to. in the course of Goverrunent-subsidized the Senator from New H-pshire would -Mr. KUCMM. Mr. President, I move research. vote "yea." to lay that motion on the table. @hermore, whereas our traditional on this vote, the Senator from South The motion to lay on the table was patent policy has consistently encour- Dakota (Mr. McGoVERNI is paired with agreed to. aged prolific invention, by requiring de- the Senator from Nebraska [Mr. HRus- Mr. 'PASTOP.E. Mr. President. I v@lopment of alternative or improved de- xAi. if present and voting, the Senator should like to explain why I made the vices and ideas to circumvent existing from South Dakota would vote "nay" motion to lay on the table and why I Patents, we can have no such confidence and the Senator from Nebraska would voted as I did. that we can develop or that we can await vote "Yea." I am doing it now because all time had the development of alternative mecu- Mr. KU . I announce that the expired and I did not then have ol3,por- c'nes and devices to combat cancer, senator from Nebraska (Mr. HRusKA] tunit3r to express myself. I was unable heart disease, and the whole catalog and the Senator from New Hampshire of ailments which plague mankind. to do so before I made the motion. [Mr. CoTToN] are necessarily absent. If I were placed in the position of hav- And so I think that the only s ty The Senator from North Dakota @. ing to vote on the merits of the amend- relevant to patent policy between Gov- YOUNG] is absent on official business. ment, I should have voted in the @a- erz=ent-financed research in medicine The Senator from Wyoming [Mr. tive. I believe in the objective which and in other fields is that all such re- SIMPSON] is detained on oflicial business. -the amendment seeks to azwmpll@ I search involves public funds. On this vote, the Senator from New am for the consumer. I voted for the Thus, the objects of medical research, Hampshire [Mr. COTTON) is Paired With natural gas bin. I voted to cut down the their urgency, and their intimacy to the senator from Maryland [Mr. oil depletion allowance. I believe in pro- human welfare and survival may dictate AWTYDINGS]. If present and voting; the tecting the rights of the consumer. The that different patent policies be applied Menator from New Hampshire Would objective of this amendment Is to pro- to publicly financed medical research 'Wote "yea" and the Senator from Mary- tect the rights of the consumer. But the than are applied, for example, to de- land would vote "naY." weight of opinion Is that @ is not the fense and space research. On this vote, the Senator from Wyo- time or place or procedure. Therefore, I voted against tabling Sen- ming [Mr. SNOSON] is paired with the The Senator from Rhode Island was ator LONG'S amendment. I think It de- - - - U- +lk- .-@--+ -.A. I,- +I,. +1 . ... @f . @@+. ne 28, 1965 CONGRESSIONAL RECORD -SENATE 14415, Mr. McGOVERN subsequently said: Itshing, and operating regional medical com- 'rrants for planning and deve@ent Mr. President, earlier this afternoon I plexes for research, training, and demon- "SEc. 903. (a) The Surgeon General, upon te on stration activities for out the pur- the recommendation of the National Advisory inadvertently missed a roUcall vo from poses of this title. Sti-m appropriated under Council on Medical Complexes established by the amendment of the Senator this section for any fiscal year shall remain @on 905 (hereinafter in @ title ref Louisiana [Mr. LOITGI, relative to the available for making such grants until ths to.9s.the 'Council'), Is authorized to -akO publie's interest in patents, stemming end of the fiscal year following the fiscal year grants to public or nonprofit private unl- from Government-M=ced Medical re- for which the appropriation is made. versities, medical schools, research institu- search. '-(b) A grant under tb is title shall be for ii(ius, hospitals, and other public or non- I support the Long amendment and I part or all of the cost of the planning and profit private agencies and institutions, or regret missing this important vote. other activities with respect to which the @tations thereof, to assist them in plan- dur- application is made, except that any such nii),g the development of regional medical.! I was in the Senate dinilig room grant with respect to construction of, or pro- complexes. ing the entire roUcall conferring with vision of built-in (as determined In accord- "(b) Grants under this section may be six university leaders who are support- ance with regulations) equipment for, any made only upon application therefor ap- ing my bill, S. 1212, that seeks to give facility may not exceed 90 per centum of the proved by the Surgeon General. Any such our colleges and universities a more cost of such construction or equipment. application may be approved only if It con- eff ective role in the foreign assistance -' (c) Funds appropriated pursuant to this tains or is supported by reasonable awur- program. We were deeply engrossed in title shall not be available to pay the cost of ancesthat- conservation. I simply did not hear the hospital, medical, or other care of patients "(1) Federal funds paid pursuant to any except to the extent it is, as determined in such grant will be used only for the purposes rolicall bell. Furthermore, no memtr accordance with regulations, Incident to re- for which paid and in accordance With the of the Senate staff, nor of My Own Stan. search, training, or demonstration activities. applicable, provisions of this title and the notified me that a rolllcau was in prog- "Definit@ regulations thereunder; ress. I am sorry that a Combination of --Szc. 902. For the purpose of this title- 11(2) the applicant will provide for such negligence on my part, and that of staff ical complex! fiscal control and fund accounting prooo- ,,(a) The term 'regional med dures as are required by the 8@ @@ personnel, led to my missing this im- means a group Of public or nonprofit private eral to assure proper disbursement of -and portant vote. institutions or agencies engaged in --h, accounting for such Federal funds-. The PRESMING OMCER. The bill ng, prevention, diagnosis, and treatment "IS) the applicant will -sk'ra ke is open to further amendment. If there relating to heart disease, cancer. or sUo . in @.h form ad n g uch be no further amendment to be Pro- and, at the option of the applicant, any other tion as the Surgeon General may from. posed, the question is on the engross_ @ found by the surgeon General to be to time reasonably require, and wtH keep bill. of major significance to the aforesaid objec- such records and afford such access ment and third r of tht tives of such regional medical -mPle3r but as the Surgeon General may find The bill was ordered to be engrossed only If such group- to assure the correctness and of for a third reading, was read the third ,(I) is situated within a geogtaphic-@ such reports; and time and p@, as follows: composed of any part or @ of any one or S. 596 More States, which the Surgeon General de. "(4) the applicant wUl d@to an ad- r,- termines, in accordance with regulations, to @ group. to advise the applicant (and act to amend the Public Health Be be appropriate for out. the purposes the resulting regional medical complex and Joe Act to @t in combating heart disease, its component units) in formula@ and cancer, and @ke, and other majr of.this title; can- carrying out the plans for the wft ent le dis@. (2) consists of one or more medical and operation of such regional medical com- Be it enacted by the Senate and House of ters, one or more categorical research centers, plex, which Includes representatives of orw itepresentati,ves of the United States of and one or more diagnostic and treatment nimtions, institutions, and @on am- America in Congress assembled, That this stations; and earned with activities. of the kind to be Act may be cited as the "Heart Disease, Can- 1(3) has In effect m-to for the, carried on by the complex and members of coordination of the activities of Its oompo- the public familiar with the @ for the car, and Stroke Amendments of 1965" nent units which the Surgeon General finds Sac. 2. The Public Health Service Act (42 will bd adequate for effectively g out @ces provided by the co U.S.C., ch. 6A) is amended by adding at the @! purposes of this title. 'Grants for establishment and operation of end thereof the following new title: regional medical oomp@ (b) The term 'Medical centez' Means & XX@NAL @CAL CO@ FOR medical school or other medical institution "Szc. 904. (a) The Surgeon General. upon RES@ AND T=k@ IN =MT D@, involved in post-graduate medical 9 the reconunendations of the Council, is au- CANCZR, UMOME, @ OTHER MAJOR D@ nd ne or m-cre hospitals aMHated therewith thorized to make grants to public or non- "Purposes for teacblng. and demonstration profit private universities, medical schools. "Szc. goo. The purposes of this title are- Purposes- research institutions, hospitals, and other '(a) Through grants, to encourage and as- " (e) The term 'categorical @h center' public or nonprofit private agencies and dat in the establishment of regionally coordi- means an institution (or Part of an lmtitu- Institutions, or associations thereof, to "Wet nated arrangements among medical schools, tion) the primary function of which is re- in establishment and operation of regional research Institutions. and hospitals for re- search (including clinical research), training medical complexes, including construction march and and for demonstrations of specialists, and demonstrations and which, and equipment of facilities In connection of patient care In the fields of heart disease. In connection therewith, provides specialized, therewith. @cer, stroke, and other major diseases; high-quality diagnostic and treatment serv- "(b) Grants under this section May be (b) To afford to the medical profession Ices for inpatients and outpatients. made only upon application therefor ap- and the medical Institutions of the Natio]36 "(d) The term 'diagnostic and treatment proved by the Surgeon, General. Any such through such coordinated arrangements, a statioW means a unit of a hospital or Other application may be approved only If It con- More abMdant opportunity of making avail- health facility, the function of tains or Is supported by reasonable able to their patients the latest advances in which is to support and augment local Cape- ances that- the diagnosis and treatment of these dis- bility for providing spec@, high-quafity "(1) Federal funds paid pursuant to any eases; and preventive, diagnostic, and treatment services such grant (A) win be used only for the pur- " (c) To accomplish these ends Without to outpatients and Inpatients. poses for which paid and in accordance with interfering with the patterns, or the methods "(e) The term 'nonprofit' as applied to the applicable provisions gf this title and of financing, of patient care or professional anv institution or agency means an Mditu- the regulations thereunder, and (B) will practice, or with the tion of hos- i@ or agency which Is owned and oMmted not supplant funds that are otherwise avail- piws. by one or more nonprofit corporations or able for establishment or operation of the "Authorization of appropriations Stations no @ of the net earnings of regional medical complex with respect to "SEc 901, (a) There are authorized to be which In--, or may lawfully inure, to the which the grant is made; ropriated $50,000,000 for the ibcal year benefit of any priv te shareholder or In- 11(2) the applicant will provide for such app al a, fiscal control and fund accounting proce- ending June 30, 1966, $iOO,000,000 for the dividu fiscal year ending June 30, 1967, $200,000,000 11(f) Thetermlconstmctionincludesalter- dures as are required by the Surgeon Gen- AWor the fiscal year entling June 30, 1968, and ation, major repair (to the extent permitted eral to assure proper disbursement of and @00,000,000 for the fiscal year ending June 30, by regulations). remodeling, replacement, accounting fnr such Federal funds; IW969, for grants to assist public or nonprofit and renovation of existing buildings (includ- " (3) the applicant will make such re@. private universities, medical schools, research ing initial equipment thereof), and replace- in such form and containing such Luforma, Institutions, hospitals, and other public or ment of obsolete, built-in (as determined in tion as the Surgeon General may from time nonprofit private Institutions and agencies, accordance with regulations) equipment of to time reasonably require, and will keep or associations thereof, in planning, w"b- existing buildings. such records and afford such @ th@ 14416 CONGRESSIONAL RECORD -SENATE June 965 as the Surgeon General may find necessary "Regulations to assure the correctness and verification of "SEc. 906. The Surgeon General, after con- such reports; sultation with the Council, shall prescribe 11(4) the applicant has designated an ad- general regulations covering the terms and visory group, described In paragraph (4) of tions for approving applications for section 903(b), to advise in carrying out the grants iLmder this title and the coordin&tAon omplex; and plan for the regional medical c Of programs assisted under this title with 11(5) any laborer or mechanic employed programs for training, reseaxch, and demon- by any contractor or subcontractor in the stmtions relating to the same diseases -- performance of work on any construction sisted or authorized under other titles of this aided by payments pursuant to any grant Act or other Acts of Congress. under this section will be paid wages at rates "Report not less than those prevailing on similar construction in the locality as determined "SEc. 907. On or before June 30, 1967, the by the Secretary of Labor In accordance with Surgeon General, after consultation with'the the Davis-Bacc>n Act, as amended (40 U.S.C. Council, @ll submit to the Secretaxy for 276a-276a-5); and the Secretary of Labor transmission to the President and then to ,shall have, with respect to the labor stand- the Congress, a report of the activities under ards specified in this paragraph, the author- this title together with (1) a statement of ity and functions set forth in @rga@a- the relationship between Federal financing tion Plan Numbered 14 of 1950 (15 P.R. 3176: and financing from other sources of the ac- 5 U.S.C. 133z-15) and section 2 of the Act tiviti- undertaken pursuant to this title, of June 13, 1934, as amended (40 u.S.C, (2) - appraisal of the activities assisted Un- 276c). der this title in the light of their effective- ness in c out the purposes Of this ,,Natimmi advisory council on 7nedical title, and (3) recommendations With respect co?nplexes to extension or modification of this title In "Sze. M. (a) There is hereby established the light thereof." in the Public Health Service a National Ad- Sze. 3. (a) Section I of the Public Health visory council on Medical C-ple-. The Service Act is amended to read anfollows: Council shall consist of the Surgeon General, -,SzmwN 1. Tltles I to M inclusive. of iZis who owl be the Chairman, and the Chief Act may be cited as the 'Public Health Serv- Medical Director of the Vetemm' A im Aa'." tmtion, ex official and twelve members, not (b) The Act of July 1, 1944 (58 Stat. 682). ot in the employ of the United States, as amended. is further amended by renum- appointed by the Surgeon General, with the bring title IX (as in effect prior to the 3n- approval of the secretary and without re,- actment of this Act) as title :g, and by re- g@ to the civil service laws, who are lead- numbering sections gol through 914 (as in ers in the fields of the fundamental sciences. offset prior to the enactment of this Act), the medical sciences, hospital admlrfttra- and references theretO. as sections 1001 tion, or public affairs. At least one of the through 1014, respectively. appointed members shall be on ding In the study, @osts, or treatment of heart Mr. MANS Mr. President, I d . one shall be outstanding in the move to reconsider the vote by which the study, diagnosis, or treatment of cancer, and bill was passed. one shall be outstanding In the study, diag- Mr. . Mr. President, I move tO nosis,, or treatment of @ke. C(>IM- lay that motion on the table. "(b) @h appointed member of the The motion to lay on the table waS on shall hold otnee for a term of four years, agreed to. except that any member appointed to fill a vacancy prior to the expiration of the term for,whi,ch his pred@ was appointed @ be appointed for the remainder of such term, and t that the terms of o@ of the members @ taking offtce shall expire, as des by the surgeon General at the of appointment, four at the end of the year, four at the end of the @d Year, and four at the end of the third year after the date of appointment. An appointed member shall not be eligible to serve con- tinuously for more than two terms. .,(,) Appointed members of the CDuncU, while attending meetings or wWer@ thereof orzotherwise ierving on business of the Council, @ll be entitled to receive com- pensati,Dn at rates fixed by the @L-tary, but not e g $100 per day, including travel ttine,'and while so serving away from their homes or places of business they may be allowed travel expenses, including per them in lieu of subsistence, as auth by section 5 of the Atimfnintrative Act of 1946 (5 U.S.C. 73b-2) @for persons In the Government service employed intermit- tently. "(d) The Council shall advise and assist the surgeon General in the preparation of regulations for, and as to policy raatters arising with to, the administration of this title. The Council shall consider all applications for grants under this title and shall make reConUnendati=S to the 8 n General with respect to approval of applim- tions for and the amounts of grants under this title-, and such recommendations sh also be transmitted to any advisory council or committee, established by or pursuant to this Act, which the Surgeon General deems