San Francisco - M. H. de Young Memorial Museum "Animal Style" Art from East to West" (1970). Toledo Museum of Art "Dutch Masterpieces from the Eighteenth Century" (1971). Senator PELL. We now have the final panel, and actually the most important, from the viewpoint of the securing passage of this legislation, in that they represent the administration. It consists of Miss Nancy Hanks, Chairman of the National Endowment for the Arts, and Dr. Ronald Berman, who is here in a double capacity of Chairman of the Federal Council on the Arts and the Humanities, as well as being Chairman of the National Endowment for the Humanities. Who will open? Mr. BERMAN. Whatever choice suits the Senator. Senator PELL. I guess that since Dr. Berman is here as Chairman of the Federal Council of the Arts and Humanities, which is the umbrella group, perhaps he should open. I understand that as of now the Humanities are doing much funding of this type of activity. Dr. Berman. STATEMENT OF DR. RONALD BERMAN, CHAIRMAN, FEDERAL COUNCIL ON THE ARTS AND THE HUMANITIES AND CHAIRMAN, NATIONAL ENDOWMENT FOR THE HUMANITIES; NANCY HANKS, CHAIRMAN, NATIONAL ENDOWMENT FOR THE ARTS; ACCOMPANIED BY JOHN R. SPENCER, DIRECTOR, MUSEUM PROGRAM; AND MICHAEL STRAIGHT, DEPUTY CHAIRMAN, A PANEL Mr. BERMAN. Thank you very much, Mr. Chairman. It is a pleasure for me having an opportunity to testify before this committee today on the proposed Arts and Artifacts Indemnity Act. Obviously there are many perspectives that have to be taken into consideration when dealing with new legislation of this kind. I am grateful to have heard of the participation of our colleagues in the museum field, especially, of course, that of Mr. Sherman Lee, who is Vice Chairman of the National Council on the Humanities. I would like to concentrate my comments on the importance of some form of assistance to museums when they are responsible for loaned objects of great value. As you know, the Endowment for the Humanities has a strong interest in the issues addressed by legislation of this kind. It was clear from the Endowment's inception in 1965 that the basic mandate of the Endowment for the Humanities required a close relationship between this agency and museums. Virtually the first program of the Endowment, in the spring of 1966, was a program of grants to the museums. From this modest beginning, the museums program has become, over the decade, one of the key ways in which the Endowment serves the public. For instance, we have awarded close to $7.5 million to museums over the past two years for interpretive exhibitions, education, and personnel development programs which centrally involve the disciplines of the humanities. I note parenthetically that virtually every single reference to individual exhibitions today by earlier witnesses were, in fact, supported by the Endowment for the Humanities, whether in South Dakota, whether in Massachusetts, in Kansas City, Washington, New York, or Los Angeles. Clearly, interpretive exhibitions which use original works of art, artifacts, objects, manuscripts, and other examples of material culture are an important way of bringing the humanities to the public. Equally, such grants respond to the need of museums which only the Endowment can meet. And we have become increasingly aware of the high and often prohibitive costs of insurance when objects are of great value. Originally, this Endowment had taken the position that we should not fund insurance costs, and our original museum guidelines were written in this way. However, we came to realize that a change of policy that would enable us to assist museums to pay high insurance costs was necessary if museums and other cultural institutions were to be able to mount exhibition of major educational and historical value. The experience of NEH is that insurance costs for objects of great value are growing beyond the means of the private sector, and the proposed act intends clearly to help make it possible for meaningful, international exhibition exchanges to continue. As you know, the Endowment for the Humanities, in cooperation with the private sector, provided support for the Scythian exhibition now at the Metropolitan Museum, and soon on its way to Los Angeles, and for the Exhibition of Archaeological Finds from the People's Republic of China, which came to Washington, is now in Kansas City, and soon will be in San Francisco. Were it not for the special legislation that pledged the faith and credit of the U.S. Government to indemnify works in these exchanges, the insurance costs would have been prohibitive. Yet this experience has shown that in the transportation, packing, unpacking, and installation in the several cities, no serious insurance exposures have occurred. Studies available to the Endowment cite the remarkably good insurance record for actual loss or serious damage to objects or works of art in major exhibitions. Prof. Irving Pfeffer, who is an insurance specialist at the College of Business at Virginia Polytechnic Institute and State University, has conducted research over the past several years which confirms the statistically low risk in this kind of insurance. This may help assuage possible concerns about the extent of the real risks for indemnification of international exhibitions. I know you are all well aware that the British Government indemnifies important loans for that nation. For example, one of this nation's major Bicentennial exhibitions in England will be of American Decorative Arts originally mounted in this country with support from the Humanities Endowment. The exhibition could be made available to Great Britain because the Government of that nation is indemnifying the works in the show. Mr. Chairman, I know that you and your colleagues share my conviction that cultural exchange is very important to the diplomatic efforts of this country. It is becoming increasingly clear that relations which may be strained in political and economic terms, can remain productive in cultural terms which enables an affirmative continuing dialog to exist. We also believe that the direct opportunity for the citizens of this country to gain insight and understanding about the history and cul ture of other nations gives them a greater wisdom and perspective in dealing wtih international issues. And concomitantly people abroad will better understand our Nation as they are made more aware of the cultural breadth and achievement that is, in fact, part of our heritage. This, Mr. Chairman, is completely consistent with your belief and that of your colleagues in conceiving the National Foundation on the Arts and the Humanities, that the arts and humanities help provide us with the wisdom and vision necessary to understand the past, and to deal effectively with the present and the future. Grants for interpretive exhibitions have become one of the major ways in which the Endowment for the Humanities has been of assistance to the Nation's museums, as well as effective in getting the substance of the humanities to the general adult public. International exhibitions are an important part of this work and indemnity legislation would obviously be helpful. Therefore, I heartily concur in the intent of this legislation, but I am obliged to note that the Office of Management and Budget has advised that it cannot support this legislation in its present form, believing that further study needs to be given to the question of Federal involvement, also to the extent of Federal involvement which would be desirable and the manner in which such Federal involvement should be organized. OMB notes the following five problems in the bill before this committee: 1. The bill would appear to raise a constitutional problem because it vests power in the Federal Council on the Arts and the Humanities, a Council which includes representatives of the Congress. This raises a question concerning the separation of powers. 2. Further study needs to be given to the availability of private insurance to determine what types of insurance might be needed and what the cost might be. 3. The bill does not circumscribe the Federal role with sufficient exactness. As written, it appears too open ended, and this requires further study. 4. The bill does not contain an upper limit on the Government's contingent liability. 5. The bill does not contain any recognition of a role for private insurers. They might play a role through coinsurance, or perhaps in other ways. This concludes my testimony, and for that I am grateful, Senator. Thank you. Senator PELL. Thank you very much. [The prepared statement of Mr. Berman follows:] |