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Dwight D. Eisenhower, correspondence
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Dwight D. Eisenhower, correspondence
-
box: 367
folder: 2
-
1959 to 1960
-
WIRE
STRAIGHT
President:
Mr.
reign of terror
The
by the Reverend
of the
members
UAW,
you to instruct the Attorney
restore
law
and order
law has focused
already
the eyes
defaced by violent and
permitted
to suffer fanthee
inspiration,
then America
between
hope
promises
I urge
sworn to "preserve,
to make
to assure
and our
you in your
struggle
that the constitutional
credentials in order
ugly practices
capacity
not be
is to provide
communism,
by bridging the
of the
gap
United States,
of the United States,"
of your high office and your
of all citizens
are fully protected.
Walter P. Reuther,
International Union,
WPR:ol
oeiu42
country
in the field of civil rights.
as Chief Executive
and influence
rights
-- must
against
protect and defend the Constitution
full use of the prestige
to
of our
image
The
segregationist elements
in the world
must first get its moral
name
for equality and dignity under
If American democracy
damage.
and leadership
our noble
citizens
upon America.
lawless
to
Alabama.
of our Negro
of the world
appealing
action in your
immediate
to take
in Montgomery,
sires
The
General
i
King
abies
Martin
I join the Reverend
citizens
On behalf of the officers and
rights.
in their constitutional
be protected
so that Negro
intervention
to you
un-American
and
immoral
is shocking,
and effective
prompt
reported
Alabama,
in Montgomery,
King,
Luther
Martin
for your
and calls
may
1960
Eisenhower
D.
The Honorable Dwight
The White House
Washington, D. C.
Dear
ll,
March
President
UAW
person
--
THE
WHITE HOUSE
WASHINGTON
17,
March
Dear
1960
Reuther:
Mr.
The President asked me to acknowledge and thank you for your teleThe President
gram concerning the recent demonstrations in Alabama.
appreciated your wiring him about this matter.
to questions
In answer
terday,
the
President
about
said:
this
at his press
subject
''Well,
it's
conference
difficult......
to
give
yes-
a sweeping
Some are unquestionably a proper expression of a conviction
judgment.
of the group which is making them; others probably can be otherwise
classified.
I am deeply sympathetic with the
'Now, let me make one thing clear.
efforts of any group to enjoy the rights, the rights of equality that they
[Ido not believe that violence in any
are guaranteed by the Constitution.
form furthers that aspiration, and I deplore any violence that is exerSo, while
cised to prevent them -- in having and enjoying those rights.
I don't want to make any -- any judgment because I am not in a position
Ido
to, I know about these as they come just briefly to my attention.
not
know
what
all
of them
are.
Ido
know,
though,
that
when,
person is expressing such an aspiration as this in a perfectly
then I don't see any reason why he should not do it...
ifa
legal way,
aw pee ame I think there ought to be bi-racial conferences in every
Tb
city and every community of the South, which would be much better
than trying to get up here and direct every single thing from Washington.
I am one of those people that believes there is too much interference in
our private affairs and, you might say, personal lives already.
And I
would like to diminish rather than increase it............... "
Sincerely
\ icine a,
Special
Mr.
Walter
President
United Auto
Detroit,
P.
Reuther
Workers
Michigan
yours,
\ dew Cave
David W. Kendall
Counsel to the President
Ee
eee
eee
ae
ee
a
ee
S
eee
ee
A Se
ot
oe ee
FS Oe ete Oe! we
ee
Tay Te Pee ge RENate
TRE. eee
0
6
9
1
,
6
y
a
M
n besd provided pelliiesl eotace
for theseams Sealiiaiees if na thing else. ”
President Eisenhower
man
decency.
for ene
)
LEMME
-3-
May 6, 1960
raw anesscitios to assure : 1 ote ndarda of
Moreover, the proposal sete cali
on benefits
und ‘prosey bed drugs and perhaps,
will
aus
in the
still-mi¢sing
details
appear on other items as well.
when Secre axy
of the
propos
» amounted to $177 ae of 1957-1958.
s¢ive nothing for _- =
—
r
yea
l
ful
a
r
fo
on
ve
li
to
t
ief
ve
ha
d
ul
wo
She
!
wee
a
1
$1
an
th
ss
le
-68
of $5
ave: ved"
the
nena
teat.
‘But ‘ieia,
such, su jects the ae
one
whe need it 2now fr ather
ha
s
n
o
i
t
a
r
e
n
e
g
‘
n
e
v
e
r
o
s
e
d
a
dec
ak 3
0:
President Ei
May 6, 1960
~6-
* antes
P.
een
Presi dent
MAY 1% 196¢
THE
WHITE
HOUSE
WASHINGTON
May 16, 1960
Dear
Mr.
Reuther:
This is to acknowledge your letter of May
sixth to the President concerning the Administration's suggestions concerning medical care
for the aged.
Before leaving for Paris, the
President requested the Secretary of Health,
Education, and Welfare to respond directly to you
on this matter, and I am sure that you will be
hearing shortly from Secretary Flemming.
Sincerely yours,
q
Robert
E.
Merriam
Deputy Assistant
to the President
Mr. Walter P. Reuther
President
International Union, U. A. W.
Solidarity House
8000 East Jefferson Avenue
Detroit
14,
Michigan
THE
SECRETARY
OF
HEALTH,
EDUCATION,
AND
YON 2 1960
WELFARE
WASHINGTON
Dear
Mr.
Reuther:
I have
dated May
tration's
6,
been
asked to reply to your
1960,
letter
which gave your comments
plan for meeting
the health needs
In the Administration's
to President
Eisenhower
concerning the Adminis-
of our aged citizens.
study of this problem,
we have concluded
that the most serious problem for the aged in the health area arises when
the aged person of limited means is faced with long periods of illness.
The Forand
He is unable to obtain protection against this type of illness.
3
approach would not provide such protection.
Moreover, our health advisers have pointed out the importance of
providing health care facilities of a non-institutional nature as well as of
We believe that, by adding non-institutional
an institutional nature.
benefits to those of an institutional nature, more persons would be able
to obtain assistance than would be the case under the Forand approach
which permits an aged person to qualify for benefits only by obtaining
Under our
admission to a hospital, and from there to a nursing home.
plan, a doctor would be free to decide that a person could also be treated
in the home or in his office and thereby avoid subjecting the patient to
relatively high-cost institutional care when, in fact, this may not really
be necessary from a cost point of view, or desirable from a health
point of view.
In other words, the Administration's proposal and the Forand
proposal are looking toward the achievement of different objectives.
Forand
bill
concentrates
on
first-dollar
institutional
costs.
It would
The
not
provide any help if the person needs non-institutional care, or if he
At that
uses up the period of entitlement contemplated in the bill.
point, the aged individual is on his own in meeting continuing costs.
Our figures show that hospital and other institutional care represent
only a third of the total medical bill; hence under the Forand approach
the individual would have to find the means of paying for the other
two-thirds of the bill.
While it is true that the
not actually suffer long drawn
incidence of such illnesses is
one can predict who will be so
illness which aged people fear
liquidate their meager assets
or both.
greater percentage of aged persons do
out illnesses, we do know that the
much higher among aged people, and no
It is this type of
stricken and when.
most, because it may force them to
or to become a burden to their families,
Our proposal pinpoints the need in yet another way.
The bene-
ficiaries of our plan are those aged persons of limited means who, by
The Forand approach on
far, predominate among the elderly group.
the other hand leaves uncovered at least 4 million, or one out of every
These include the aged persons on
four persons in the aged group.
public assistance and other aged persons who, for one reason or another,
If faced
failed over the years to qualify for social security coverage.
with high medical costs, they would have to resort to public assistance
At the same time, the Forand approach
or forego medical attention.
would make certain health benefits available to many persons on the
social security rolls whose incomes are such that they really do not
We believe that this would
need governmental assistance in this area.
constitute an unwise expenditure of payroll tax dollars which could be
used more wisely elsewhere on behalf of the aged.
Also,
use
of the payroll tax would place the entire tax burden
earnings up to $4, 800
to the
exclusion
of earnings
above
$4,800,
on
earnings
of persons not covered by social security, and earnings other than wages,
The Administration proposal, on the
such as dividends and interest.
It would
other hand, would place the burden on those most able to pay.
finance the Federal portion of the Federal-State program out of general
tax revenues which are drawn from nearly all earnings of persons with
,
the greatest ability to pay.
Moreover,
the
Forand
approach
would
require
the wage
earners
of today to finance the cost of providing health care to those social
It can be assumed
security beneficiaries of eligible age now on the rolls.
that the costs of the program will rise and that its benefits will be
expanded, adding further costs which will require additional increases
Thus, the Forand approach could imperit the payroll
in the payroll tax.
tax as a resource for improving and extending the retirement and
We should not
disability objectives of the social security system.
forget that the schedule of tax increases already on the statute books
will bring the present payroll tax to a total of 9% of payroll.
}
\
\
\
\\
\
\
In your letter, you noted the case of a widow who has an annual
income of $880 and who is confronted with a medical bill equal to oneYour analysis of the relative ineffectiveness
half her income, or $440.
of our proposal in dealing with this woman's problem is essentially
However,
correct because our proposal would not cover first-dollar costs.
This requires her to
consider that the same woman may suffer a stroke.
After this, her doctor
be hospitalized for 30 days at a cost of $900.
decides that she can be treated adequately in a nursing home, but must
se
nur
duty
ate
priv
a
has
She
.
640
$2,
of
cost
a
at
ths
mon
11
e
ther
stay
Her doctor
The cost of this is $300.
| on a 24-hour basis for five days.
visits her in the hospital and later at the nursing home for a cost of $300.
The overall total of medical expense
Lastly, she has drug costs of $100.
amounts
to $4, 240.
Under the Forand bill, the maximum costs that would
her would be that of the 30 days hospitalization and the 120
Of the $4, 240
home care, less the 30 days in the hospital.
social security fund would pay only $1, 620, leaving her or
be paid for
days of nursing
bill, the
her family
to find $2, 620.
Under the Administration proposal, if the same aged woman had paid
her $24 enrollment fee, the State plan would pay $3, 192 of the $4, 240 bill.
The patient or her family would be responsible for the first $250 of expenses
Thus, under the
and 20 percent ($798) of the remainder of the total bill.
Administration plan, the patient would have paid a total of $1,048 for this
particular illness, which would have cost her $2, 620 under the Forand
Indeed, the woman would probably pay even less for this illness
approach.
under the Administration proposal,
had
some
previous
medical
against the $250 deductible.
expenses
since in all likelihood she would have
during
the year
which
could be applied
We recognize that our plan depends upon affirmative action by
NeverAdmittedly, this presents difficulties.
the 50 State legislatures.
theless, this Department administers a whole range of Federal-State
Our experience with these programs has been that nearly
programs.
all of the States came in in the first year, and all but a few were in by
We have adopted a Federal-State approach
the second or third year.
in this matter because of our firm conviction that matters of health are
a fundamental part of the responsibilities of the States, and that the
proper role of the Federal Government in this matter is to assist States
in the discharge of that responsibility.
com
w
allo
ld
wou
al
pos
pro
on
ati
str
ini
Adm
the
that
ion
ert
ass
r
You
mercial insurance carriers to profit at the expense of the aged, seems
Our optional provision concerning the purchase
to me to be ill-founded.
of private insurance requires that the private insurance must be of the
The Federal and State Governments
major medical expense type.
together would supply no more than half the cost of the premium, and
We assume that
no more than $60 towards the individual's policy.
individuals considering whether to elect this optional benefit would
naturally compare it with the wide range of specified benefits contemWe added
plated under the basic option in the Administration's proposal.
the insurance provision only to provide an alternative for any persons who
would still prefer to obtain health care protection through the insurance
route rather than through a direct Government program.
From
the
information
I have,
insurance provision would bring
I would
doubt
that the
optional
great profits to the insurance
companies.
t
tha
n
tio
ump
ass
an
on
ed
bas
be
may
ion
ert
ass
r
you
t
tha
me
to
It occurs
the
e
rat
ope
to
rs
rie
car
nce
ura
ins
e
vat
pri
h
wit
ct
tra
con
States would
r,
eve
How
is.
bas
nce
ura
ins
an
on
m
gra
pro
e
car
l
ica
Federal-State med
te
Sta
a
by
ed
ain
ret
y
pan
com
nce
ura
ins
Any
e.
cas
the
be
not
ld
wou
this
ge
na
ma
a
g
min
for
per
in
te
Sta
the
for
nt
age
an
as
y
onl
ing
act
be
ld
wou
The States could not permit the insurance carrier to
ment function.
operate
the plan on an actuarial
basis.
ans
ric
Ame
d
age
of
ds
nee
lth
hea
the
that
you
h
wit
y
tel
ple
I agree com
I
cs.
iti
pol
an
tis
par
end
nsc
tra
t
mus
and
,
ent
urg
and
g
lin
pel
com
h
bot
are
ng
ki
ma
of
e
hop
t
nes
ear
the
in
ted
mit
sub
was
al
pos
assure you that our pro
a beginning toward the solution of this long-standing problem.
I cannot
help but note in this connection that the problem has been debated
without successful result over a decade.
It is quite clear that there
are still fundamental objections in many parts of our society to proceeding now by use of the social security payroll tax.
Our aged citizens
will receive little help if this debate drags on.
We must take the most
practical course open to us and work from there.
I am sure that we can make
the Federal-State route, because
of being put on the statute books.
imperfections and difficulties can
experience rather than conjecture;
dations can be made from time to
you to consider
our proposal
progress in this matter if we go down
such a plan has a reasonable chance
Once it has been placed in operation,
be assessed in the light of working
and upon that experience, recommentime for necessary changes.
I urge
in the light of these
Sincerely
observations.
yours,
Girds
Secretary
Mr. Walter P, Reuther
President
International Union, U.A. W.
Solidarity House
8000 East Jefferson Avenue
Detroit 14, Michigan
THE
OF
SECRETARY
HEALTH,
AND
EDUCATION,
WELFARE
WASHINGTON
N
i>
m4
2
Gas
A
ffm
Dear
Mr.
yi s*
—_
oy
j
:
an
ya
!
ar
Reuther:
I have
asked to reply to your letter
been
to President
Eisenhower
s
ni
mi
Ad
the
ng
ni
er
nc
co
ts
en
mm
co
ur
yo
ve
ga
h
ic
wh
0,
196
dated May 6,
tration's plan for meeting the health needs of our aged citizens.
d
de
lu
nc
co
ve
ha
we
m,
le
ob
pr
s
thi
of
y
ud
st
's
on
In the Administrati
en
wh
es
is
ar
ea
ar
th
al
he
the
in
ed
ag
the
for
that the most serious problem
s.
nes
ill
of
s
od
ri
pe
g
lon
h
wit
d
ce
fa
is
s
an
me
d
te
mi
li
of
on
rs
the aged pe
nd
ra
Fo
e
Th
s.
nes
ill
of
e
typ
s
thi
t
ns
ai
ag
on
He is unable to obtain protecti
approach
would
Moreover,
not provide
our health
such protection.
advisers
have
pointed
out the
importance
of
of
as
l
wel
as
re
tu
na
l
na
io
ut
it
st
in
nno
a
of
s
tie
providing health care facili
l
na
io
ut
it
st
in
nno
ng
di
ad
by
t,
tha
e
ev
li
be
We
an institutional nature.
e
abl
be
d
ul
wo
s
on
rs
pe
re
mo
,
re
tu
na
l
na
io
ut
it
st
in
an
benefits to those of
ch
oa
pr
ap
nd
ra
Fo
the
r
de
un
se
ca
the
be
d
ul
wo
n
tha
ce
to obtain assistan
g
in
in
ta
ob
by
y
onl
ts
fi
ne
be
for
y
lif
qua
to
on
rs
pe
which permits an aged
our
r
de
Un
.
me
ho
g
in
rs
nu
a
to
e
er
th
om
admission to'a hospital, and fr
d
te
ea
tr
be
o
als
d
ul
co
on
rs
pe
a
t
tha
de
ci
de
to
e
fre
plan, a doctor would be
to
t
en
ti
pa
the
ng
ti
ec
bj
su
d
oi
av
y
eb
er
th
d
an
ice
off
in the home or in his
ly
al
re
not
y
ma
s
thi
t,
fac
in
,
en
wh
re
ca
l
na
io
ut
it
relatively high-cost inst
be necessary from
point of view.
a cost point of view,
or desirable
from a health
nd
ra
Fo
e
th
d
an
al
os
op
pr
's
on
ti
ra
st
ni
mi
Ad
e
In other words, th
e
Th
.
es
iv
ct
je
ob
t
en
er
ff
di
of
t
en
em
ev
hi
ac
proposal are looking toward the
t
no
d
ul
wo
It
s.
st
co
l
na
io
ut
it
st
in
ar
ll
do
trs
Forand bill concentrates on fi
*
dh,
he
if
or
e,
car
al
ion
tut
sti
-in
non
ds
nee
on
rs
pe
the
if
p
provide any hel
t
tha
At
l.
bil
the
in
ed
at
pl
em
nt
co
nt
eme
itl
ent
of
iod
per
the
uses up
point, the aged individual is on his own in meeting continuing costs.
t
en
es
pr
re
e
car
l
ona
uti
tit
ins
er
oth
and
al
pit
hos
t
tha
Our figures show
only a third of the total medical bill; hence under the Forand approach
the individual would have to find the means of paying for the other
two-thirds of the bill.
do
s
son
per
d
age
of
e
tag
cen
per
r
ate
gre
the
that
e
tru
is
While it
the
t
tha
w
kno
do
we
,
ses
nes
ill
out
wn
dra
g
lon
fer
suf
ly
ual
not act
no
and
,
ple
peo
d
age
ng
amo
her
hig
h
muc
is
ses
nes
ill
incidence of such
one can predict who will be so stricken and when.
Itis this type of
illness which aged people fear most, because it may
den
bur
a
ome
bec
to
or
ets
ass
ger
mea
ir
the
ate
uid
liq
or
_
force them to
to their families,
both.
eben
The
.
way
r
the
ano
yet
in
d
nee
the
nts
poi
pin
Our proposal
by
,
who
s
an
me
d
ite
lim
of
s
on
rs
pe
d
age
se
tho
are
n
pla
our
of
ies
iar
_ fic
on
ch
oa
pr
ap
nd
ra
Fo
The
up.
gro
y
erl
eld
the
g
on
am
e
at
in
om
ed
pr
far,
ry
eve
of
out
one
or
n,
lio
mil
4
st
lea
at
d
re
ve
co
un
ves
lea
d
the other han
on
s
on
rs
pe
d
age
the
e
lud
inc
e
es
Th
up.
gro
d
age
the
in
s
on
four pers
r,
the
ano
or
on
as
re
one
for
,
who
s
on
rs
pe
d
age
er
oth
and
e
anc
public assist
failed over the years
to qualify for social security coverage.
If faced
e
anc
ist
ass
lic
pub
to
ort
res
to
e
hav
ld
wou
y
the
ts,
cos
l
ca
di
me
h
hig
with
At the same time, the Forand approach
or forego medical attention.
the
on
s
on
rs
pe
ny
ma
to
ble
ila
ava
ts
efi
ben
lth
hea
n
tai
cer
would make
not
do
lly
rea
y
the
t
tha
h
suc
are
s
me
co
in
e
os
wh
ls
rol
ty
uri
social sec
need governmental assistance in this area.
constitute
used more
an unwise
wisely
expenditure
elsewhere
We believe that this would
of payroll tax dollars
on behalf of the aged.
which
could be
on
en
rd
bu
tax
ire
ent
the
e
ac
pl
d
ul
wo
tax
l
Also, use of the payrol
gs
in
rn
ea
,
00
,8
$4
e
ov
ab
gs
in
rn
ea
of
n
io
us
cl
ex
the
earnings up to $4, 800 to
s,
ge
wa
n
tha
r
he
ot
gs
in
rn
ea
and
,
ty
ri
cu
se
al
ci
so
of persons not covered by
the
on
,
al
os
op
pr
on
ti
ra
st
ni
mi
Ad
e
Th
.
st
re
te
in
such as dividends and
d
ul
wo
It
.
pay
to
e
abl
st
mo
e
os
th
on
en
rd
bu
the
e
ac
pl
other hand, would
l
ra
ne
ge
of
out
m
ra
og
pr
e
at
St
lra
de
Fe
the
of
n
io
finance the Federal port
h
wit
s
on
rs
pe
of
gs
in
rn
ea
all
ly
ar
ne
om
fr
n
aw
dr
are
tax revenues which
the greatest ability to pay.
Moreover, the Forand approach would require the wage earners
al
soci
e
thos
to
care
th
heal
ing
vid
pro
of
cost
the
of today to finance
d
ume
ass
be
can
It
s.
roll
the
on
now
age
ible
elig
of
s
rie
cia
efi
ben
ty
uri
sec
be
will
fits
bene
its
that
and
rise
will
m
gra
pro
the
of
that the costs
expanded, adding further costs which will require additional increases
l
rol
pay
the
t
eri
imp
d
coul
ch
roa
app
and
For
the
s,
Thu
tax.
oll
payr
the
in
and
t
men
ire
ret
the
ing
end
ext
g
and
in
ov
pr
im
for
ce
our
res
tax as a
not
uld
sho
We
.
tem
sys
ty
uri
sec
ial
soc
the
of
s
ive
ect
obj
y
lit
abi
dis
ks
boo
e
tut
sta
the
on
y
ead
alr
ses
rea
inc
tax
of
le
edu
sch
the
t
tha
forget
will bring the present payroll tax to a total of 9% of payroll.
In your
- income
letter,
of $880
you noted the case
of a widow
who
has
an annual
one
to
al
equ
l
bil
l
ca
di
me
a
h
wit
d
nte
fro
con
is
and who
ess
ven
cti
ffe
ine
ve
ati
rel
the
of
is
lys
ana
r
You
0.
$44
or
,
me
co
in
‘ half her
ly
ial
ent
ess
is
m
le
ob
pr
s
n'
ma
wo
s
thi
h
wit
g
lin
dea
in
of our proposal
r,
ve
we
Ho
ts.
cos
lar
dol
stfir
er
cov
not
ld
wou
al
os
op
correct because our pr
to
her
es
uir
req
s
Thi
.
oke
str
a
fer
suf
y
ma
n
ma
wo
me
sa
the
consider that
tor
doc
her
s,
thi
er
Aft
0.
$90
of
t
cos
a
at
s
day
30
for
zed
ali
be hospit
st
mu
but
,
me
ho
g
sin
nur
a
in
y
tel
qua
ade
d
ate
tre
be
decides that she can
stay
there
11
months
at a cost
of $2,640.
She
has
a private
duty
nurse
tor
doc
Her
0.
$30
is
s
thi
of
t
cos
The
s.
day
e
fiv
for
on a 24-hour basis
0.
$30
of
t
cos
a
for
me
ho
g
sin
nur
the
at
er
lat
and
al
pit
hos
visits her in the
Lastly, she has drug
amounts to $4, 240.
costs
of $100.
The
overall total of medical
ld
wou
t
tha
ts
cos
m
mu
xi
ma
the
l,
bil
nd
ra
Fo
the
r
de
Un
her would be that of the 30 days hospitalization and the 120
240
$4,
the
Of
al.
pit
hos
the
in
s
day
30
the
s
les
e,
car
home
social security fund would pay only $1, 620, leaving her or
to find $2, 620.
expense
be paid for
days of nursing
bill, the
her family
d
pai
d
ha
n
ma
wo
ed
ag
me
sa
the
if
,
al
os
op
pr
on
Under the Administrati
l.
bil
240
$4,
the
of
92
,1
$3
y
pa
d
ul
wo
n
pla
te
Sta
the
her $24 enrollment fee,
es
ns
pe
ex
of
50
$2
st
fir
the
for
e
bl
si
on
sp
re
be
d
ul
wo
The patient or her family
the
r
de
un
,
us
Th
l.
bil
al
tot
the
of
r
de
in
ma
re
the
of
98)
and 20 percent ($7
©
s
thi
for
48
,0
$1
of
al
tot
a
d
pai
ve
ha
d
ul
wo
t
en
Administration plan, the pati
nd
ra
Fo
the
r
de
un
620
$2,
her
t
cos
ve
ha
d
ul
wo
h
particular illness, whic
s
nes
ill
s
thi
for
s
les
en
ev
y
pa
ly
ab
ob
pr
d
ul
wo
n
Indeed, the woma
approach.
ve
ha
d
ul
wo
she
od
ho
li
ke
li
all
in
ce
sin
,
under the Administration proposal
d
ie
pl
ap
be
d
ul
co
h
ic
wh
ar
ye
the
ng
ri
du
es
ns
pe
had some previous medical ex
against the $250 deductible.
We recognize that our plan depends upon affirmative action by
the 50 State legislatures.
Admittedly, this presents difficulties.
Nevertheless, this Department administers a whole range of Federal-State
programs.
Our experience with these programs has been that nearly
all of the States came in in the first year, and all but a few were in by
the second or third year.
We have adopted a Federal-State approach
in this matter because of our firm conviction that matters of health are
a fundamental part of the responsibilities of the States, and that the
proper role of the Federal Government in this matter is to assist States
in the discharge of that responsibility.
Your assertion that the Administration proposal would allow commercial insurance carriers to profit at the expense of the aged, seems
to me to be ill-founded.
Our optional provision concerning the purchase
of private insurance requires that the private insurance must be of the
major medical expense type.
The Federal and State Governments
together would supply no more than half the cost of the premium, and
no more than $60 towards the individual's policy.
We assume that
individuals considering whether to elect this optional benefit would
naturally compare it with the wide range of specified benefits contemplated under the basic option in the Administration's proposal.
We added
the insurance provision only to provide an alternative for any persons who
would still prefer to obtain health care protection through the insurance
route rather than through a direct Government program.
From the information I have, I would doubt that the optional
insurance provision would bring great profits to the insurance companies.
It occurs to me that your assertion may be based on an assumption that
States would contract with private insurance carriers to operate the
Federal-State medical care program on an insurance basis.
However,
this would not be the case.
Any insurance company retained by a State
would be acting only as an agent for the State in performing a manage--.
ment function.
The States could not permit the insurance carrier to
operate the plan on an actuarial basis.
I agree completely with you that the health needs of aged Americans
are both compelling and urgent, and must transcend partisan politics.
I
assure you that our proposal vas submitted in the earnest hope of making
.
a beginning toward the solution of this long-standing problem.
I cannot
help but note in this connection that the problem has been debated
without successful result over a decade.
It is quite clear that there
are still fundamental objections in many parts of our society to proceeding now by use of the social security payroll tax.
Our aged citizens
will xeceive little help if this debate drags on,
We must take the most
practical course open to us and work from there.
Iam sure that we can make progress in this matter if we go down
the Federal-State route, because such a plan has a reasonable chance
Once it has been placed in operation,
of being put on the statute books.
imperfections and difficulties can be assessed in the light of working
experience
rather
than
conjecture;
and upon that experience,
dations can be made from time to time for necessary changes.
you to consider our proposal in the light of these observations.
Sincerely yours,
Aer
P
}
nr
UL
wee
Secretary
“Mr. Walter
President
International
Solidarity
8000 East
Detroit
14,
P.
Reuther
Union,
U.A. W.
House
Jefferson Avenue
Michigan
ae
¢)
BS
a
ff”
f/
recommen-
I urge
—
THE
WHITE HOUSE
WASHINGTON
June
Dear
Mr.
30,
1960
Reuther:
The President has asked me to respond to
your letter of June twenty-fifth presenting
your views on economic developments and
on appropriate public policies ‘relating
thereto.
Copies of your letter have been distributed
to the Council of Economic Advisers and to
the heads of other Federal agencies having
major responsibilities in the economic
sphere.
I can assure you that your views will be
given full and earnest consideration.
Sincerely
yours,
lou
\
David W. Kendall
Special Counsel to the President
Walter
President
Mr.
International
United
P.
Reuther
Union
Automobile,
Agricultural
Implement
of America
8000 East Jefferson
Detroit
14,
Aircraft
Avenue
Michigan
and
Workers
The Honorable Dwight D. Eisenhower
ober
~2-
1960
19,
We are hopeful that the impetus given to this iden. oy
apeeeh will send te ite favorable consideration by me: execut.
en
e
eit
es
tiv
ecu
on
org
a
es
ap
as
nap
ecm
you
if
d
ate
t
greatly fs: cili
publicly or privately your personal interest in having hom explor
our letter.
in h
with us in good faith the proposal set fort
WPRihd
Basiooure
Waiter
P.
eee»
* wean
TEXT OF LETTER
L.
Mr.
Chrysler
Colbert,
L.
Corporation
President >
Mr. Henry Ford II,
Ford Motor Company
John Gordon,
Mr.
Motors
General
President
Corporation
their
affairs
with
ever-increasing
means
to
this
end,
he
sophy,
We
opinions
we
have
the
approached
ee
biel Gomme
with
faith
We
the
American
"Tn
in
of the
years
Association
of
School
and
the
complex
management
community.
and
have
This
in
ago,
words
in
and
speech.
In
community";
the
fact,
philosophy with which
statement
and we
have
and
table
bargaining
the
in
suggestions
ideas
of the
philosophy
that
March
a tremendous
closely
1950,
Administrators,
interdependent
joint
core
nation."
world
I
parallel
speaking
to
those
the
te good
tried
used
by
Convention
the
of
said:
in which we
in
"Progress
spirit.
that
10
of his
free
to this
the
collective
at the
expense
position
our
both
out
the
at
section
formed the
summed up
example,
For
President.
have
We
affairs
expressed
have
responsibilities
and not
our
conduct
to
our
large.
at
cee
for many years
have
expressed
he
labor-management
in the
in
merit
is
table--their philo-
bargaining
responsibility
there
that
believed
long
have
presented
President
the
UAW
the
in
common
their
all,
above
and
needs,
their
the
from
removed
discuss--far
la
eee
and
atmosphere
in a calm
down
sit
mat
a
As
welfare."
national
leaders
business
and
the
for
responsibility
“Labor
declared,
both to conduct
ofrt
on the pa
effort
"for a supreme
labor and management
called upon
Eisenhower
President
dinner,
Show
Automobile
National
the
at
speech
recent
his
In
President
live, labor
the whole
to ty
responsibili
of labor and management
responsibility
l
ia
ec
sp
its
to
has
er
th
ei
t
tha
ty
li
bi
si
on
transcends the resp
ng
ni
ai
rg
ba
ve
ti
ec
ll
co
of
ld
fie
the
in
s
on
si
ci
De
up.
gro
economic
.
.
y.
it
un
mm
co
e
ol
wh
e
th
for
ss
re
og
pr
t
ec
fl
must re
_ #-more--
corporations.......s.02
major
three
only if labor and manage-
"Tndustrial tension will be minimized
ment demonstrate the capacity of leadership to
bargaining above the status of a never-ending
competing pressure groups and make collective
exploring of basic economic facts in search of
advance the welfare of the whole community.
elevate collective
struggle between
bargaining a joint
answers that will
that will take
responsibility
"Tn a society of free men there is no substitute
the place of the voluntary acceptance of social
Freedom will be made secure in
all groups.
extent that people in positions of leadership in
groups begin to demonstrate a loyalty to the total
transcends their loyalty to their special economic
on the part of
America to the
major economic
community that
group."
its
stated
conviction
that:
free
labor
".,..
the
to
of
whole
their
portance
nation
the
particular
necessity
of
which
responsibility
a joint
have
management
free
and
im-.
in
transcends
separate
to their
responsibilities
Board
Executive
International
UAW
the
1958,
9,
August
adopted
a resolution
In
Neither labor nor management has a moral right to attempt
groups.
to advance its particular interest at the expense of the well-being |
Neither labor nor management can hope
of the whole of our society.
to make progress except as they facilitate progress for the whole
community."
multiply
I could
not
have
We
practical
expression
interests
of
than
for
need
the
any
at
the
labor
on the
butions
to
process
For
when
previous
President's
gether
America
the
of
period
and the
our
of
unite
that
furtherance of
coming
a number
of
to
I,
history,
if we
their
his
We
have
same
of the
concrete,
give
to
community
of the total
needs
tried
sincerely
our
too,
national
on
we
deeply
efforts
transcend
the
in
common
the
can
to make
purpose--we
will
also
on
which
we
We
to
arrange
important
raed
urgent
an
is
interest.
able
peril
in greater
there
that
believe
only be
not
matters
have
are
symbolizes
it
in labor and management
us we will
agreement
years,
expressions
our
speech.
in
freedom which
pool
to
conviction that
things
of
group.
management
and
the
that
our belief
particular
any
a time
At
to
expressed
to words.
ourselves
confined
examples
above
the
Eisenhower
President
that
philosophy
times
many
get
share
to-
sontes-
facilitate
differ.
need
e ed
iz
emphasth
for
labor
and
management
--more --
corporations .....+.++43
major
three
encouraged
Now,
goal
we
propose
that
the
auto
industry.
for
a means
establishing
of
with
join
you
us
endorsement
Eisenhower's
President
by
united
to
community.
to the whole
responsibilities
labor-management
joint
labor-management
long-standing
of the
efforts
efforts re
such
for
UAW
interest,
common
the
tn
mechanism
a practical
provide
in the area of
to consider matters
from the bargaining table"
"far removed
meetings
It is not for us in the UAW unilaterally to blueprint the details of such a
the
from
would
pogudbae:
aside
able
be
bargaining
any
a useful
to make
our
as
problem
contribution
the
toward
would
would
such,
solution
be
for the
be open
as
interests
facili-.
But,
barred.
of which
as
wide
production
auto
communities in which
problems,
common
as
be
we
might
of
consideration
Conference.
As
by
The
matters
only to wage
maintain
full
housing,
nations,
growth
of economic
but
employment
and
and
full
care,
inflationary
|
of the
compete
pressures
to
specifically
problems
growth,
of economic
change.
and technological
production,
to
agenda
speech--the problems
to all Americans because
medical
and to keep
on the
technological
and
competition,
earners
in his
Eisenhower
President
import
inflation,
suggest inclusion
would
we
a start,
mentioned
tion,
and
bargaining,
collective
from
jointly
Collective
located.
are
ties
States
United
of the
citizens
of the
judgment,
our
involve
that
of problems
range
full
the
covering
in
should,
activities
Conference's
the
of
scope
The
Conference
year.
a
times
four
policy-
shhh
the
suggestion,
least
at
propose
would
regularly--we
meet
to
arrange
UAW
the
of
leaders
and
executives
policy-making
top-level,
of
help-
be
Management-
Joint
Industry
Eisenhower's
President
with
accordance
In
level.
making
consist
may
it
consideration.
your
Automobile
corporations
manufacturing
automobile
for
a permanent
would
Nevertheless,
together.
do
should
proposals
Conference
This
Conference.
Labor
labor
establish
we
that
I suggest
and
tentative
certain
330. 4 outline
TUL
the
industry
This
mechanism.
change
they are
meet
our
are
the
of deep
concern
key to our
community needs
successfully with
imports
from
ability
in
not
to
educa -
other
;
under control.
--more--
és
three
major
We
corporations..........4
share
bility
and
an
automation
tions
of
to
and
the
workers
make
in the
an
which
and
I am
sure
will
open
we
can
is
are
your
advanced
the
we
to
feel
indicate
by
labor
and
other matters
66
which
we
solutions
to
be
problems
glad
that
in
which
labor
should
give
overcome
problems
our
to
industry.
consideration.
good
may present
deficits
problems.
joint
in
impact
management
to
in
that
disloca-
major
of common
join you
you
problems
the
community
range
responsi-
and
and
helping
management
to
the
hardships
other
the broad
cooperation
will
in
to
meet
the
that
together
solutions
have both a
to
communities
working
finding
helping
minimize
addition,
suggestions and
tnadektine
in
management
in
and to
and
In
in
free
leadership
contribution by
and
and
create
felt.
suggest
faith
the
and
vith
attention
of
Conference.
become
accustomed
of community
purpose
labor
families
constructive
welcome
As
kinds
ideas
you
proposed
the
provide
education
for
minds
to
their
change
of
above
call
free
new technology
important
field
The
that
opportunity
technological
can
We
the belief
that
problems
unites
us
to
pooling
outlined
our
efforts
above, I
in that endeavor
in
have
will
the
search
for
answers
to
the
every
confidence
that
the
atmosphere
at
the
collective
place
that
led
the
and
labor
improve
the
common
bargaining table.
In my
dent
judgment,
to address
mobile
that
his
industry.
our
industry
collective
the
in
have
spread
But
we
President,
exerts
on the
bargaining
the
throughout
Pride
representatives
cannot
afford to
leadership
bringing
as
fully
understanthe
ds
community.
on
labor
and
our
With
provide
to
in
the
many
important
greater
security
for
which
achievements,
by
and
of management
national
management
in those
rest
of time
responsibility
economy
as well
leaders
sure,
entire
process,
accident
the
I am
provided
jointly
of Americans.
millions
management
to
responsibility --the
past
widely
suggestions
The
a corresponding
the
it was not a mere
spokesmen
laurels,
for
and
our
has
in the
auto-
powerful influence
that
influence
goes
leadership.
Through
automobile
industry
advances
that
dignity
and
been
Union,
nei ck
Presi-
is
cannot
to
expressed
fully
afford
have
by
justified.
to
have
--more --
us
initiative.
We
The President
in the automobile
industry--both
called
in manageprogress
future
the
for
paths
new
to break
nominated
has
accomplishments.
nation.
our
in my mind
question
in
labor
and
management
War
During World
for
States: proved
United
in the
and management
II, labor
our example.
follow
will
industries
other
that
I believe
proposed above,
lines
the
along
Conference
a joint
establish
industry
wisdeootte
in the
If we
lead.
follow our
will
others
that
There
us.
placed before
has been
that
challenge
the
ie access
I propose: that
is no
past
been
labor--have
in
and
ment
providea new
to
upon us
of
glow
in the
complacently
bask
of
corporations ......+6665
major
three
all the
.
diversity
in
unity
a
voluntarily
achieve
to
men
free
of
capacity
the
see
to
world
proposing,
Weare
througha
men
on this
embark
every
in
We
‘to whom
a
renewed
call
faith
free
in the
face
that
suggestion,
at
us
free
t
men
manageand
good
with
we will
that
banish
peiecua
will
succeed.
creative
and
home
and
labor
in
a determination
in our
Success
possibilities
a
in the
will
of voluntary
ex-
world
industry.
one
to make
effort
small
first,
it work,
at
I
inspire
action
by free
society.
free
we
experiment
confidence
with
of
effort
cooperative
President's
the
with
challenges
in meeting the
step
perimental
in line
must
de-
than
fulfillment
we
can,
"We
said,
President
or
of our best efforts.
is a challenge worthy
This alone
others
the
as
alluring
less
and
progress
human
of
in terms
fruitful
no
are
peacetime purposes
for
efforts
example,
For
in war.
victory
have
more
far
ed
‘imate,
united
our
con-
chee
achieved
to be
the goals
front
Aseiontie
On the
than armed
dramatic
less
today, though
in the world
face
serious.
is no less
mobilizing
we
we
challenge
The
flict,
terror.
totalitarian
through
imposed
conformity
and
discipline
prison-like
the
overwhelm
to
enough
powerful
upon
are
you
also
and
your
writing,
to
industry
join
associates
with
us
in
Sthee autosiobl le: eorporabious.
in accepting
the
President's
suggestion
-
6
.
+
.
+
+
.
.
.
.
s
n
o
i
t
a
r
o
p
r
o
c
r
jo
ma
three
for periodic
hearted
We
meetings
cooperation
await
"far
removed
in bringing
from the
that
bargaining
suggestion
to
life
table."
and
_/[s/
yours,
Walter P. Reuther, President
INTERNATIONAL UNION, UAW
eee?
ed
oeiuh2
offer
assuring
your reply.
Sincerely
We
its
our wholesuccess.
a
960
ls
OCT 28
r
THE PRESIDENT’S COMMISSION ON NATIONAL GOALS
THE AMERICAN
~
|
ASSEMBLY, COLUMBIA UNIVERSITY
Staff Director
722 Jackson Pl., N.W.
C
n
D.
6
gto
hin
Was
STerling 3-6970
Mr.
411
|
‘
,
|
;
October 26, 1960
ae
af?
™N
a,
ay fo
Walter P. Reuther
West Milwaukee Avenue
Detroit
Dear
x
New York 27, New York
:
William P, Bundy
|
3
administered by
|
2,
Mr.
Michigan
Reuthers
The 17 October 1960 draft of Mr. Watson's chapter on Technological
Change is substantially the version which we plan to include in the
Commission's book "Goals for Americans."
We propose to acknowledge
your participation as follows if you have no objections
"In
the
preparation
of
this
chapter,
Mr.
Watson
had
the
advice and assistance of:
David L. Cole, lawyer; Charles H.
Percy, President, Bell & Howell; Emanuel R. Piore, Vice Presi-~dent for research and engineering,
IBM; Walter P. Reuther,
President,
CIO Division
Mx.
said
of AFL/CIO;
George
P. Shultz,
of Economics, University of Chicago.
The
however, are solely the responsibility of
Watson
that your
comments
views expressed,
the author."
and those
members were most helpful to him.
We know that
the paper and we appreciate the effort you have
the
Commission
If
you
in
have
its
any
in
support
or
of the
other
panel
they are reflected in
exerted in assisting
task.
statement
Professor
opposition
to
Mr.
Watson's
chapter which you would like the Commission to review in preparation
for drafting its own report we should have it by Tuesday, 1 November
at the latest.
We would appreciate receiving any comment you may have
on the participation statement by the same date.
Yours
very
bone
Sf
y
u
b
Aebegdh
a
Staff
-
Lf
truly
Coriden,
JL
aban teaen es
COMMISSION
HENRY
M. WRISTON,
CRAWFORD
Chairman
H. GREENEWALT
e
e«
FRANK
ALFRED
PACE,
JR., Vice Chairman
M. GRUENTHER
e
e
ERWIN
LEARNED
HAND
D. CANHAM
e¢
CLARK
e¢
JAMES
KERR
e
B. CONANT
JAMES
«
COLGATE
R. KILLIAN,
JR.
e
W.
DARDEN,
GEORGE
JR.
MEANY
THE PRESIDENTS COMMISSION ON NATIONAL GOALS
administered by
3
THE AMERICAN ASSEMBLY, COLUMBIA UNIVERSITY
New
York 27, New
Staff Director
1
William P, Bundy
SOS
SG
«722 Jackson Pl., N.W.
Washington 6, D. C.
STerling
3-6970
|
Ee
ates
ait
York
|
}
.
Peon
eo
ee
is
bei
5
oh
December l, 1960
Mr.
Walter
P.
Reuther
411 W. Milwaukee Avenue
Detroit
Dear
2,
Mr.
Michigan
Reuther:
AS
you
own Report
|
The
have
was
released
book
seen
in
the
on Monday,
containing
inapplicable
part.
Based
Could
or if
you.let
you had
of the
a Tair
you,
them
the
press,
November
R€port
and
the
on
|
consultation
we plan to send
well within the
through
appreciate
been
the
not
its
with
your
supporting
chapters,
by Prentice-Hall, Inc.
shall be getting the
panel
the author,
letter
of
the
time
empty but
ue
|
:
and
,
transmittal
o>
thought
chapters,
impossible.
a.
me
,
ES
York
MayI add the heartfelt
deeply
merely
|
HENRY M, WRISTON, Chairman
of
checks from New
calendar year.
quality of the supporting
oS
case
Commission's
28.
and
your
and our
us know if this seems unreasonable
added expenses not yet reimbursed?
with the Report.
the
to
the
personal
understanding
|
effort you put into direct comment and co
nsultation, we believe
fee would be $100, the equivalent of one
day of panel attendance.’
members
. COMMISSION
doubtless
entitled "Goals for Americans" and published
will come out officialloyn December 12.
We
clearly
|
et
ok
to
the
any reason,
hear from
President,
published
December
15,
have
contributed?
the whole project
a
to
thanks of the Staff,
~: > Sincerely,
:
ft
you
about
to you for
Unless we
bearer
bring
who
Without
:
would have
,
~
a
-. William P. Bunay
FRANK PACE, JR., Vice Chairman « ERWIN D. CANHAM
« JAMES B. CONANT
+ COLGATE W. DARDEN, JR.
4
‘
December 8, 1960
Mr.
William P.
Bundy
The President's Commission
The American Assembly
Columbia University
New York 27, New York
Be:
Dear Mr.
on National
Goals
Bundy:
Before leaving the city, Mr. Reuther
respond to your kind letter of December Ist. ©
|
asked me to
Mr. Reuther does not wish to accept any compensaon
on
si
is
mm
Co
's
ent
sid
Pre
the
of
rk
wo
the
in
n
tio
ipa
tion for his partic
National Goals.
We look forward to receiving
'Goals
Sincerely
a
—~~
oeciu 42
|
for Americans. "
yours,
(Mrs. ) Otha Lloyd, Secretary to
Reuther
P.
Walter
he
The
HOUSE
THE WHITE
WASHINGTON
October
28,
1960
Reuther:
Dear
Mr.
This
will acknowledge
to the
letter
nineteenth
receipt
of your
President,
October
to which
n
te
it
wr
ve
ha
u
yo
s
er
tt
le
of
t
tex
the
ed
ch
ta
at
u
yo
ns
io
at
or
rp
co
le
bi
mo
to
au
the
of
s
ad
he
the
to
calling upon them to join with the United Automobile Workers to establish a permanent
r
bo
La
nt
me
ge
na
Ma
t
in
Jo
ry
st
du
In
le
bi
mo
Auto
Conference.
You may
materials
be sure your thought in sending these
is appreciated.
Sincerely
\s
Special
Mr.
P.
Walter
UAW
8000
East
Detroit
14,
\ Ques Gus
David W. Kendall
Counsel to the President
Reuther
President
International
yours,
Union
Jefferson
Avenue
Michigan
- Item sets